Pierre/NNP
Vinken/NNP
,/,
61/CD
years/NNS
old/JJ
,/,
will/MD
join/VB
the/DT
board/NN
as/IN
a/DT
nonexecutive/JJ
director/NN
Nov./NNP
29/CD
./.
Mr./NNP
Vinken/NNP
is/VBZ
chairman/NN
of/IN
Elsevier/NNP
N.V./NNP
,/,
the/DT
Dutch/NNP
publishing/VBG
group/NN
./.
Rudolph/NNP
Agnew/NNP
,/,
55/CD
years/NNS
old/JJ
and/CC
former/JJ
chairman/NN
of/IN
Consolidated/NNP
Gold/NNP
Fields/NNP
PLC/NNP
,/,
was/VBD
named/VBN
a/DT
nonexecutive/JJ
director/NN
of/IN
this/DT
British/JJ
industrial/JJ
conglomerate/NN
./.
A/DT
form/NN
of/IN
asbestos/NN
once/RB
used/VBN
to/TO
make/VB
Kent/NNP
cigarette/NN
filters/NNS
has/VBZ
caused/VBN
a/DT
high/JJ
percentage/NN
of/IN
cancer/NN
deaths/NNS
among/IN
a/DT
group/NN
of/IN
workers/NNS
exposed/VBN
to/TO
it/PRP
more/RBR
than/IN
30/CD
years/NNS
ago/IN
,/,
researchers/NNS
reported/VBD
./.
The/DT
asbestos/NN
fiber/NN
,/,
crocidolite/NN
,/,
is/VBZ
unusually/RB
resilient/JJ
once/IN
it/PRP
enters/VBZ
the/DT
lungs/NNS
,/,
with/IN
even/RB
brief/JJ
exposures/NNS
to/TO
it/PRP
causing/VBG
symptoms/NNS
that/WDT
show/VBP
up/IN
decades/NNS
later/JJ
,/,
researchers/NNS
said/VBD
./.
Lorillard/NNP
Inc./NNP
,/,
the/DT
unit/NN
of/IN
New/JJ
York-based/JJ
Loews/NNP
Corp./NNP
that/WDT
makes/VBZ
Kent/NNP
cigarettes/NNS
,/,
stopped/VBD
using/VBG
crocidolite/NN
in/IN
its/PRP$
Micronite/NN
cigarette/NN
filters/NNS
in/IN
1956/CD
./.
Although/IN
preliminary/JJ
findings/NNS
were/VBD
reported/VBN
more/RBR
than/IN
a/DT
year/NN
ago/IN
,/,
the/DT
latest/JJS
results/NNS
appear/VBP
in/IN
today/NN
's/POS
New/NNP
England/NNP
Journal/NNP
of/IN
Medicine/NNP
,/,
a/DT
forum/NN
likely/JJ
to/TO
bring/VB
new/JJ
attention/NN
to/TO
the/DT
problem/NN
./.
A/DT
Lorillard/NNP
spokewoman/NN
said/VBD
,/,
``/``
This/DT
is/VBZ
an/DT
old/JJ
story/NN
./.
We/PRP
're/VBP
talking/VBG
about/IN
years/NNS
ago/IN
before/IN
anyone/NN
heard/VBD
of/IN
asbestos/NN
having/VBG
any/DT
questionable/JJ
properties/NNS
./.
There/EX
is/VBZ
no/DT
asbestos/NN
in/IN
our/PRP$
products/NNS
now/RB
./.
''/''
Neither/DT
Lorillard/NNP
nor/CC
the/DT
researchers/NNS
who/WP
studied/VBD
the/DT
workers/NNS
were/VBD
aware/JJ
of/IN
any/DT
research/NN
on/IN
smokers/NNS
of/IN
the/DT
Kent/NNP
cigarettes/NNS
./.
``/``
We/PRP
have/VBP
no/DT
useful/JJ
information/NN
on/IN
whether/IN
users/NNS
are/VBP
at/IN
risk/NN
,/,
''/''
said/VBD
James/NNP
A./NNP
Talcott/NNP
of/IN
Boston/NNP
's/POS
Dana-Farber/NNP
Cancer/NNP
Institute/NNP
./.
Dr./NNP
Talcott/NNP
led/VBD
a/DT
team/NN
of/IN
researchers/NNS
from/IN
the/DT
National/NNP
Cancer/NNP
Institute/NNP
and/CC
the/DT
medical/JJ
schools/NNS
of/IN
Harvard/NNP
University/NNP
and/CC
Boston/NNP
University/NNP
./.
The/DT
Lorillard/NNP
spokeswoman/NN
said/VBD
asbestos/NN
was/VBD
used/VBN
in/IN
``/``
very/RB
modest/JJ
amounts/NNS
''/''
in/IN
making/VBG
paper/NN
for/IN
the/DT
filters/NNS
in/IN
the/DT
early/JJ
1950s/CD
and/CC
replaced/VBN
with/IN
a/DT
different/JJ
type/NN
of/IN
filter/NN
in/IN
1956/CD
./.
From/IN
1953/CD
to/TO
1955/CD
,/,
9.8/CD
billion/CD
Kent/NNP
cigarettes/NNS
with/IN
the/DT
filters/NNS
were/VBD
sold/VBN
,/,
the/DT
company/NN
said/VBD
./.
Among/IN
33/CD
men/NNS
who/WP
worked/VBD
closely/RB
with/IN
the/DT
substance/NN
,/,
28/CD
have/VBP
died/VBN
--/:
more/JJ
than/IN
three/CD
times/NNS
the/DT
expected/VBN
number/NN
./.
Four/CD
of/IN
the/DT
five/CD
surviving/VBG
workers/NNS
have/VBP
asbestos-related/JJ
diseases/NNS
,/,
including/VBG
three/CD
with/IN
recently/RB
diagnosed/VBN
cancer/NN
./.
The/DT
total/NN
of/IN
18/CD
deaths/NNS
from/IN
malignant/JJ
mesothelioma/NN
,/,
lung/NN
cancer/NN
and/CC
asbestosis/NN
was/VBD
far/RB
higher/JJR
than/IN
expected/VBN
,/,
the/DT
researchers/NNS
said/VBD
./.
``/``
The/DT
morbidity/NN
rate/NN
is/VBZ
a/DT
striking/JJ
finding/NN
among/IN
those/DT
of/IN
us/PRP
who/WP
study/VBP
asbestos-related/JJ
diseases/NNS
,/,
''/''
said/VBD
Dr./NNP
Talcott/NNP
./.
The/DT
percentage/NN
of/IN
lung/NN
cancer/NN
deaths/NNS
among/IN
the/DT
workers/NNS
at/IN
the/DT
West/NNP
Groton/NNP
,/,
Mass./NNP
,/,
paper/NN
factory/NN
appears/VBZ
to/TO
be/VB
the/DT
highest/JJS
for/IN
any/DT
asbestos/NN
workers/NNS
studied/VBN
in/IN
Western/JJ
industrialized/VBN
countries/NNS
,/,
he/PRP
said/VBD
./.
The/DT
plant/NN
,/,
which/WDT
is/VBZ
owned/VBN
by/IN
Hollingsworth/NNP
&/CC
Vose/NNP
Co./NNP
,/,
was/VBD
under/IN
contract/NN
with/IN
Lorillard/NN
to/TO
make/VB
the/DT
cigarette/NN
filters/NNS
./.
The/DT
finding/NN
probably/RB
will/MD
support/VB
those/DT
who/WP
argue/VBP
that/IN
the/DT
U.S./NNP
should/MD
regulate/VB
the/DT
class/NN
of/IN
asbestos/NN
including/VBG
crocidolite/NN
more/RBR
stringently/RB
than/IN
the/DT
common/JJ
kind/NN
of/IN
asbestos/NN
,/,
chrysotile/NN
,/,
found/VBN
in/IN
most/JJS
schools/NNS
and/CC
other/JJ
buildings/NNS
,/,
Dr./NNP
Talcott/NNP
said/VBD
./.
The/DT
U.S./NNP
is/VBZ
one/CD
of/IN
the/DT
few/JJ
industrialized/VBN
nations/NNS
that/WDT
does/VBZ
n't/RB
have/VB
a/DT
higher/JJR
standard/NN
of/IN
regulation/NN
for/IN
the/DT
smooth/JJ
,/,
needle-like/JJ
fibers/NNS
such/JJ
as/IN
crocidolite/NN
that/WDT
are/VBP
classified/VBN
as/IN
amphobiles/NNS
,/,
according/VBG
to/TO
Brooke/NNP
T./NNP
Mossman/NNP
,/,
a/DT
professor/NN
of/IN
pathlogy/NN
at/IN
the/DT
University/NNP
of/IN
Vermont/NNP
College/NNP
of/IN
Medicine/NNP
./.
More/RBR
common/JJ
chrysotile/NN
fibers/NNS
are/VBP
curly/JJ
and/CC
are/VBP
more/RBR
easily/RB
rejected/VBN
by/IN
the/DT
body/NN
,/,
Dr./NNP
Mossman/NNP
explained/VBD
./.
In/IN
July/NNP
,/,
the/DT
Environmental/NNP
Protection/NNP
Agency/NNP
imposed/VBD
a/DT
gradual/JJ
ban/NN
on/IN
virtually/RB
all/DT
uses/NNS
of/IN
asbestos/NN
./.
By/IN
1997/CD
,/,
almost/RB
all/DT
remaining/VBG
uses/NNS
of/IN
cancer-causing/JJ
asbestos/NN
will/MD
be/VB
outlawed/VBN
./.
About/IN
160/CD
workers/NNS
at/IN
a/DT
factory/NN
that/WDT
made/VBD
paper/NN
for/IN
the/DT
Kent/NNP
filters/NNS
were/VBD
exposed/VBN
to/TO
asbestos/NN
in/IN
the/DT
1950s/CD
./.
Areas/NNS
of/IN
the/DT
factory/NN
were/VBD
particularly/RB
dusty/JJ
where/WRB
the/DT
crocidolite/NN
was/VBD
used/VBN
./.
Workers/NNS
dumped/VBD
large/JJ
burlap/NN
sacks/NNS
of/IN
the/DT
imported/VBN
material/NN
into/IN
a/DT
huge/JJ
bin/NN
,/,
poured/VBD
in/IN
cotton/NN
and/CC
acetate/NN
fibers/NNS
and/CC
mechanically/RB
mixed/VBD
the/DT
dry/JJ
fibers/NNS
in/IN
a/DT
process/NN
used/VBN
to/TO
make/VB
filters/NNS
./.
Workers/NNS
described/VBD
``/``
clouds/NNS
of/IN
blue/JJ
dust/NN
''/''
that/WDT
hung/VBD
over/IN
parts/NNS
of/IN
the/DT
factory/NN
,/,
even/RB
though/IN
exhaust/NN
fans/NNS
ventilated/VBD
the/DT
area/NN
./.
``/``
There/EX
's/VBZ
no/DT
question/NN
that/IN
some/DT
of/IN
those/DT
workers/NNS
and/CC
managers/NNS
contracted/VBD
asbestos-related/JJ
diseases/NNS
,/,
''/''
said/VBD
Darrell/NNP
Phillips/NNP
,/,
vice/NN
president/NN
of/IN
human/JJ
resources/NNS
for/IN
Hollingsworth/NNP
&/CC
Vose/NNP
./.
``/``
But/CC
you/PRP
have/VBP
to/TO
recognize/VB
that/IN
these/DT
events/NNS
took/VBD
place/NN
35/CD
years/NNS
ago/IN
./.
It/PRP
has/VBZ
no/DT
bearing/NN
on/IN
our/PRP$
work/NN
force/NN
today/NN
./.
''/''
Yields/NNS
on/IN
money-market/JJ
mutual/JJ
funds/NNS
continued/VBD
to/TO
slide/VB
,/,
amid/IN
signs/NNS
that/IN
portfolio/NN
managers/NNS
expect/VBP
further/JJ
declines/NNS
in/IN
interest/NN
rates/NNS
./.
The/DT
average/JJ
seven-day/JJ
compound/NN
yield/NN
of/IN
the/DT
400/CD
taxable/JJ
funds/NNS
tracked/VBN
by/IN
IBC/NNP
's/POS
Money/NNP
Fund/NNP
Report/NNP
eased/VBD
a/DT
fraction/NN
of/IN
a/DT
percentage/NN
point/NN
to/TO
8.45/CD
%/NN
from/IN
8.47/CD
%/NN
for/IN
the/DT
week/NN
ended/VBD
Tuesday/NNP
./.
Compound/NN
yields/NNS
assume/VBP
reinvestment/NN
of/IN
dividends/NNS
and/CC
that/IN
the/DT
current/JJ
yield/NN
continues/VBZ
for/IN
a/DT
year/NN
./.
Average/JJ
maturity/NN
of/IN
the/DT
funds/NNS
'/POS
investments/NNS
lengthened/VBD
by/IN
a/DT
day/NN
to/TO
41/CD
days/NNS
,/,
the/DT
longest/JJS
since/IN
early/JJ
August/NNP
,/,
according/VBG
to/TO
Donoghue/NNP
's/POS
./.
Longer/JJR
maturities/NNS
are/VBP
thought/VBN
to/TO
indicate/VB
declining/VBG
interest/NN
rates/NNS
because/IN
they/PRP
permit/VBP
portfolio/NN
managers/NNS
to/TO
retain/VB
relatively/RB
higher/JJR
rates/NNS
for/IN
a/DT
longer/JJR
period/NN
./.
Shorter/JJR
maturities/NNS
are/VBP
considered/VBN
a/DT
sign/NN
of/IN
rising/VBG
rates/NNS
because/IN
portfolio/NN
managers/NNS
can/MD
capture/VB
higher/JJR
rates/NNS
sooner/RB
./.
The/DT
average/JJ
maturity/NN
for/IN
funds/NNS
open/JJ
only/RB
to/TO
institutions/NNS
,/,
considered/VBN
by/IN
some/DT
to/TO
be/VB
a/DT
stronger/JJR
indicator/NN
because/IN
those/DT
managers/NNS
watch/VBP
the/DT
market/NN
closely/RB
,/,
reached/VBD
a/DT
high/JJ
point/NN
for/IN
the/DT
year/NN
--/:
33/CD
days/NNS
./.
Nevertheless/RB
,/,
said/VBD
Brenda/NNP
Malizia/NNP
Negus/NNP
,/,
editor/NN
of/IN
Money/NNP
Fund/NNP
Report/NNP
,/,
yields/NNS
``/``
may/MD
blip/VB
up/RP
again/RB
before/IN
they/PRP
blip/VBP
down/RP
''/''
because/IN
of/IN
recent/JJ
rises/NNS
in/IN
short-term/JJ
interest/NN
rates/NNS
./.
The/DT
yield/NN
on/IN
six-month/JJ
Treasury/NNP
bills/NNS
sold/VBN
at/IN
Monday/NNP
's/POS
auction/NN
,/,
for/IN
example/NN
,/,
rose/VBD
to/TO
8.04/CD
%/NN
from/IN
7.90/CD
%/NN
./.
Despite/IN
recent/JJ
declines/NNS
in/IN
yields/NNS
,/,
investors/NNS
continue/VBP
to/TO
pour/VB
cash/NN
into/IN
money/NN
funds/NNS
./.
Assets/NNS
of/IN
the/DT
400/CD
taxable/JJ
funds/NNS
grew/VBD
by/IN
$/$
1.5/CD
billion/CD
during/IN
the/DT
latest/JJS
week/NN
,/,
to/TO
$/$
352.7/CD
billion/CD
./.
Typically/RB
,/,
money-fund/NN
yields/NNS
beat/VBP
comparable/JJ

short-term/JJ
investments/NNS
because/IN
portfolio/NN
managers/NNS
can/MD
vary/VB
maturities/NNS
and/CC
go/VB
after/IN
the/DT
highest/JJS
rates/NNS
./.
The/DT
top/JJ
money/NN
funds/NNS
are/VBP
currently/RB
yielding/VBG
well/RB
over/IN
9/CD
%/NN
./.
Dreyfus/NNP
World-Wide/NNP
Dollar/NNP
,/,
the/DT
top-yielding/JJ
fund/NN
,/,
had/VBD
a/DT
seven-day/JJ
compound/NN
yield/NN
of/IN
9.37/CD
%/NN
during/IN
the/DT
latest/JJS
week/NN
,/,
down/RB
from/IN
9.45/CD
%/NN
a/DT
week/NN
earlier/JJR
./.
It/PRP
invests/VBZ
heavily/RB
in/IN
dollar-denominated/JJ
securities/NNS
overseas/RB
and/CC
is/VBZ
currently/RB
waiving/VBG
management/NN
fees/NNS
,/,
which/WDT
boosts/VBZ
its/PRP$
yield/NN
./.
The/DT
average/JJ
seven-day/JJ
simple/JJ
yield/NN
of/IN
the/DT
400/CD
funds/NNS
was/VBD
8.12/CD
%/NN
,/,
down/RB
from/IN
8.14/CD
%/NN
./.
The/DT
30-day/JJ
simple/JJ
yield/NN
fell/VBD
to/TO
an/DT
average/JJ
8.19/CD
%/NN
from/IN
8.22/CD
%/NN
;/:
the/DT
30-day/JJ
compound/NN
yield/NN
slid/VBD
to/TO
an/DT
average/JJ
8.53/CD
%/NN
from/IN
8.56/CD
%/NN
./.
J.P./NNP
Bolduc/NNP
,/,
vice/NN
chairman/NN
of/IN
W.R./NNP
Grace/NNP
&/CC
Co./NNP
,/,
which/WDT
holds/VBZ
a/DT
83.4/CD
%/NN
interest/NN
in/IN
this/DT
energy-services/JJ
company/NN
,/,
was/VBD
elected/VBN
a/DT
director/NN
./.
He/PRP
succeeds/VBZ
Terrence/NNP
D./NNP
Daniels/NNP
,/,
formerly/RB
a/DT
W.R./NNP
Grace/NNP
vice/NN
chairman/NN
,/,
who/WP
resigned/VBD
./.
W.R./NNP
Grace/NNP
holds/VBZ
three/CD
of/IN
Grace/NNP
Energy/NNP
's/POS
seven/CD
board/NN
seats/NNS
./.
Pacific/NNP
First/NNP
Financial/NNP
Corp./NNP
said/VBD
shareholders/NNS
approved/VBD
its/PRP$
acquisition/NN
by/IN
Royal/NNP
Trustco/NNP
Ltd./NNP
of/IN
Toronto/NNP
for/IN
$/$
27/CD
a/DT
share/NN
,/,
or/CC
$/$
212/CD
million/CD
./.
The/DT
thrift/NN
holding/VBG
company/NN
said/VBD
it/PRP
expects/VBZ
to/TO
obtain/VB
regulatory/JJ
approval/NN
and/CC
complete/VB
the/DT
transaction/NN
by/IN
year-end/NN
./.
McDermott/NNP
International/NNP
Inc./NNP
said/VBD
its/PRP$
Babcock/NNP
&/CC
Wilcox/NNP
unit/NN
completed/VBD
the/DT
sale/NN
of/IN
its/PRP$
Bailey/NNP
Controls/NNP
Operations/NNP
to/TO
Finmeccanica/NNP
S.p/NNP
./.
A./NNP
for/IN
$/$
295/CD
million/CD
./.
Finmeccanica/NNP
is/VBZ
an/DT
Italian/JJ
state-owned/JJ
holding/VBG
company/NN
with/IN
interests/NNS
in/IN
the/DT
mechanical/JJ
engineering/NN
industry/NN
./.
Bailey/NNP
Controls/NNP
,/,
based/VBN
in/IN
Wickliffe/NNP
,/,
Ohio/NNP
,/,
makes/VBZ
computerized/JJ
industrial/JJ
controls/NNS
systems/NNS
./.
It/PRP
employs/VBZ
2,700/CD
people/NNS
and/CC
has/VBZ
annual/JJ
revenue/NN
of/IN
about/IN
$/$
370/CD
million/CD
./.
The/DT
federal/JJ
government/NN
suspended/VBD
sales/NNS
of/IN
U.S./NNP
savings/NNS
bonds/NNS
because/IN
Congress/NNP
has/VBZ
n't/RB
lifted/VBN
the/DT
ceiling/NN
on/IN
government/NN
debt/NN
./.
Until/IN
Congress/NNP
acts/VBZ
,/,
the/DT
government/NN
has/VBZ
n't/RB
any/DT
authority/NN
to/TO
issue/VB
new/JJ
debt/NN
obligations/NNS
of/IN
any/DT
kind/NN
,/,
the/DT
Treasury/NNP
said/VBD
./.
The/DT
government/NN
's/POS
borrowing/NN
authority/NN
dropped/VBD
at/IN
midnight/NN
Tuesday/NNP
to/TO
$/$
2.80/CD
trillion/CD
from/IN
$/$
2.87/CD
trillion/CD
./.
Legislation/NN
to/TO
lift/VB
the/DT
debt/NN
ceiling/NN
is/VBZ
ensnarled/VBN
in/IN
the/DT
fight/NN
over/IN
cutting/VBG
capital-gains/JJ
taxes/NNS
./.
The/DT
House/NNP
has/VBZ
voted/VBN
to/TO
raise/VB
the/DT
ceiling/NN
to/TO
$/$
3.1/CD
trillion/CD
,/,
but/CC
the/DT
Senate/NNP
is/VBZ
n't/RB
expected/VBN
to/TO
act/VB
until/IN
next/JJ
week/NN
at/IN
the/DT
earliest/JJS
./.
The/DT
Treasury/NNP
said/VBD
the/DT
U.S./NNP
will/MD
default/VB
on/IN
Nov./NNP
9/CD
if/IN
Congress/NNP
does/VBZ
n't/RB
act/VB
by/IN
then/RB
./.
Clark/NNP
J./NNP
Vitulli/NNP
was/VBD
named/VBN
senior/JJ
vice/NN
president/NN
and/CC
general/JJ
manager/NN
of/IN
this/DT
U.S./NNP
sales/NNS
and/CC
marketing/NN
arm/NN
of/IN
Japanese/JJ
auto/NN
maker/NN
Mazda/NNP
Motor/NNP
Corp/NNP
./.
In/IN
the/DT
new/JJ
position/NN
he/PRP
will/MD
oversee/VB
Mazda/NNP
's/POS
U.S./NNP
sales/NNS
,/,
service/NN
,/,
parts/NNS
and/CC
marketing/NN
operations/NNS
./.
Previously/RB
,/,
Mr./NNP
Vitulli/NNP
,/,
43/CD
years/NNS
old/JJ
,/,
was/VBD
general/JJ
marketing/NN
manager/NN
of/IN
Chrysler/NNP
Corp./NNP
's/POS
Chrysler/NNP
division/NN
./.
He/PRP
had/VBD
been/VBN
a/DT
sales/NNS
and/CC
marketing/NN
executive/NN
with/IN
Chrysler/NNP
for/IN
20/CD
years/NNS
./.
When/WRB
it/PRP
's/VBZ
time/NN
for/IN
their/PRP$
biannual/JJ
powwow/NN
,/,
the/DT
nation/NN
's/POS
manufacturing/VBG
titans/NNS
typically/RB
jet/VBP
off/RP
to/TO
the/DT
sunny/JJ
confines/NNS
of/IN
resort/NN
towns/NNS
like/IN
Boca/NNP
Raton/NNP
and/CC
Hot/NNP
Springs/NNP
./.
Not/RB
this/DT
year/NN
./.
The/DT
National/NNP
Association/NNP
of/IN
Manufacturers/NNP
settled/VBD
on/IN
the/DT
Hoosier/NNP
capital/NN
of/IN
Indianapolis/NNP
for/IN
its/PRP$
fall/NN
board/NN
meeting/NN
./.
And/CC
the/DT
city/NN
decided/VBD
to/TO
treat/VB
its/PRP$
guests/NNS
more/JJR
like/IN
royalty/NN
or/CC
rock/NN
stars/NNS
than/IN
factory/NN
owners/NNS
./.
The/DT
idea/NN
,/,
of/IN
course/NN
:/:
to/TO
prove/VB
to/TO
125/CD
corporate/JJ
decision/NN
makers/NNS
that/IN
the/DT
buckle/NN
on/IN
the/DT
Rust/NNP
Belt/NNP
is/VBZ
n't/RB
so/RB
rusty/JJ
after/IN
all/DT
,/,
that/IN
it/PRP
's/VBZ
a/DT
good/JJ
place/NN
for/IN
a/DT
company/NN
to/TO
expand/VB
./.
On/IN
the/DT
receiving/VBG
end/NN
of/IN
the/DT
message/NN
were/VBD
officials/NNS
from/IN
giants/NNS
like/IN
Du/NNP
Pont/NNP
and/CC
Maytag/NNP
,/,
along/IN
with/IN
lesser/JJR
knowns/NNS
like/IN
Trojan/NNP
Steel/NNP
and/CC
the/DT
Valley/NNP
Queen/NNP
Cheese/NNP
Factory/NNP
./.
For/IN
starters/NNS
,/,
the/DT
executives/NNS
joined/VBD
Mayor/NNP
William/NNP
H./NNP
Hudnut/NNP
III/NNP
for/IN
an/DT
evening/NN
of/IN
the/DT
Indianapolis/NNP
Symphony/NNP
Orchestra/NNP
and/CC
a/DT
guest/NN
pianist-comedian/NN
Victor/NNP
Borge/NNP
./.
Champagne/NN
and/CC
dessert/NN
followed/VBD
./.
The/DT
next/JJ
morning/NN
,/,
with/IN
a/DT
police/NN
escort/NN
,/,
busloads/NNS
of/IN
executives/NNS
and/CC
their/PRP$
wives/NNS
raced/VBD
to/TO
the/DT
Indianapolis/NNP
Motor/NNP
Speedway/NNP
,/,
unimpeded/JJ
by/IN
traffic/NN
or/CC
red/JJ
lights/NNS
./.
The/DT
governor/NN
could/MD
n't/RB
make/VB
it/PRP
,/,
so/IN
the/DT
lieutenant/NN
governor/NN
welcomed/VBD
the/DT
special/JJ
guests/NNS
./.
A/DT
buffet/NN
breakfast/NN
was/VBD
held/VBN
in/IN
the/DT
museum/NN
,/,
where/WRB
food/NN
and/CC
drinks/NNS
are/VBP
banned/VBN
to/TO
everyday/JJ
visitors/NNS
./.
Then/RB
,/,
in/IN
the/DT
guests/NNS
'/POS
honor/NN
,/,
the/DT
speedway/NN
hauled/VBD
out/IN
four/CD
drivers/NNS
,/,
crews/NNS
and/CC
even/RB
the/DT
official/JJ
Indianapolis/NNP
500/CD
announcer/NN
for/IN
a/DT
10-lap/JJ
exhibition/NN
race/NN
./.
After/IN
the/DT
race/NN
,/,
Fortune/NNP
500/CD
executives/NNS
drooled/VBD
like/IN
schoolboys/NNS
over/IN
the/DT
cars/NNS
and/CC
drivers/NNS
./.
No/DT
dummies/NNS
,/,
the/DT
drivers/NNS
pointed/VBD
out/IN
they/PRP
still/RB
had/VBD
space/NN
on/IN
their/PRP$
machines/NNS
for/IN
another/DT
sponsor/NN
's/POS
name/NN
or/CC
two/CD
./.
Back/RB
downtown/NN
,/,
the/DT
execs/NNS
squeezed/VBD
in/IN
a/DT
few/JJ
meetings/NNS
at/IN
the/DT
hotel/NN
before/IN
boarding/VBG
the/DT
buses/NNS
again/RB
./.
This/DT
time/NN
,/,
it/PRP
was/VBD
for/IN
dinner/NN
and/CC
dancing/NN
--/:
a/DT
block/NN
away/RB
./.
Under/IN
the/DT
stars/NNS
and/CC
moons/NNS
of/IN
the/DT
renovated/VBN
Indiana/NNP
Roof/NNP
ballroom/NN
,/,
nine/CD
of/IN
the/DT
hottest/JJS
chefs/NNS
in/IN
town/NN
fed/VBD
them/PRP
Indiana/NNP
duckling/NN
mousseline/NN
,/,
lobster/NN
consomme/NN
,/,
veal/NN
mignon/NN
and/CC
chocolate/JJ
terrine/NN
with/IN
a/DT
raspberry/NN
sauce/NN
./.
Knowing/VBG
a/DT
tasty/JJ
--/:
and/CC
free/JJ
--/:
meal/NN
when/WRB
they/PRP
eat/VBP
one/CD
,/,
the/DT
executives/NNS
gave/VBD
the/DT
chefs/NNS
a/DT
standing/JJ
ovation/NN
./.
More/JJR
than/IN
a/DT
few/JJ
CEOs/NNS
say/VBP
the/DT
red-carpet/JJ
treatment/NN
tempts/VBZ
them/PRP
to/TO
return/VB
to/TO
a/DT
heartland/NN
city/NN
for/IN
future/JJ
meetings/NNS
./.
But/CC
for/IN
now/RB
,/,
they/PRP
're/VBP
looking/VBG
forward/RB
to/TO
their/PRP$
winter/NN
meeting/NN
--/:
Boca/NNP
in/IN
February/NNP
./.
South/NNP
Korea/NNP
registered/VBD
a/DT
trade/NN
deficit/NN
of/IN
$/$
101/CD
million/CD
in/IN
October/NNP
,/,
reflecting/VBG
the/DT
country/NN
's/POS
economic/JJ
sluggishness/NN
,/,
according/VBG
to/TO
government/NN
figures/NNS
released/VBD
Wednesday/NNP
./.
Preliminary/JJ
tallies/NNS
by/IN
the/DT
Trade/NNP
and/CC
Industry/NNP
Ministry/NNP
showed/VBD
another/DT
trade/NN
deficit/NN
in/IN
October/NNP
,/,
the/DT
fifth/JJ
monthly/JJ
setback/NN
this/DT
year/NN
,/,
casting/VBG
a/DT
cloud/NN
on/IN
South/NNP
Korea/NNP
's/POS
export-oriented/JJ
economy/NN
./.
Exports/NNS
in/IN
October/NNP
stood/VBD
at/IN
$/$
5.29/CD
billion/CD
,/,
a/DT
mere/JJ
0.7/CD
%/NN
increase/NN
from/IN
a/DT
year/NN
earlier/JJR
,/,
while/IN
imports/NNS
increased/VBD
sharply/RB
to/TO
$/$
5.39/CD
billion/CD
,/,
up/RB
20/CD
%/NN
from/IN
last/JJ
October/NNP
./.
South/NNP
Korea/NNP
's/POS
economic/JJ
boom/NN
,/,
which/WDT
began/VBD
in/IN
1986/CD
,/,
stopped/VBD
this/DT
year/NN
because/IN
of/IN
prolonged/VBN
labor/NN
disputes/NNS
,/,
trade/NN
conflicts/NNS
and/CC
sluggish/JJ
exports/NNS
./.
Government/NN
officials/NNS
said/VBD
exports/NNS
at/IN
the/DT
end/NN
of/IN
the/DT
year/NN
would/MD
remain/VB
under/IN
a/DT
government/NN
target/NN
of/IN
$/$
68/CD
billion/CD
./.
Despite/IN
the/DT
gloomy/JJ
forecast/NN
,/,
South/NNP
Korea/NNP
has/VBZ
recorded/VBN
a/DT
trade/NN
surplus/NN
of/IN
$/$
71/CD
million/CD
so/IN
far/IN
this/DT
year/NN
./.
From/IN
January/NNP
to/TO
October/NNP
,/,
the/DT
nation/NN
's/POS
accumulated/VBN
exports/NNS
increased/VBD
4/CD
%/NN
from/IN
the/DT
same/JJ
period/NN
last/JJ
year/NN
to/TO
$/$
50.45/CD
billion/CD
./.
Imports/NNS
were/VBD
at/IN
$/$
50.38/CD
billion/CD
,/,
up/RB
19/CD
%/NN
./.
Newsweek/NNP
,/,
trying/VBG
to/TO
keep/VB
pace/NN
with/IN
rival/JJ
Time/NNP
magazine/NN
,/,
announced/VBD
new/JJ
advertising/NN
rates/NNS
for/IN
1990/CD
and/CC
said/VBD
it/PRP
will/MD
introduce/VB
a/DT
new/JJ
incentive/NN
plan/NN
for/IN
advertisers/NNS
./.
The/DT
new/JJ
ad/NN
plan/NN
from/IN
Newsweek/NNP
,/,
a/DT
unit/NN
of/IN
the/DT
Washington/NNP
Post/NNP
Co./NNP
,/,
is/VBZ
the/DT
second/JJ
incentive/NN
plan/NN
the/DT
magazine/NN
has/VBZ
offered/VBN
advertisers/NNS
in/IN
three/CD
years/NNS
./.
Plans/NNS
that/WDT
give/VBP
advertisers/NNS
discounts/NNS
for/IN
maintaining/VBG
or/CC
increasing/VBG
ad/NN
spending/NN
have/VBP
become/VBN
permanent/JJ
fixtures/NNS
at/IN
the/DT
news/NN
weeklies/NNS
and/CC
underscore/VBP
the/DT
fierce/JJ
competition/NN
between/IN
Newsweek/NNP
,/,
Time/NNP
Warner/NNP
Inc./NNP
's/POS
Time/NNP
magazine/NN
,/,
and/CC
Mortimer/NNP
B./NNP
Zuckerman/NNP
's/POS
U.S./NNP
News/NNP
&/CC
World/NNP
Report/NNP
./.
Alan/NNP
Spoon/NNP
,/,
recently/RB
named/VBN
Newsweek/NNP
president/NN
,/,
said/VBD
Newsweek/NNP
's/POS
ad/NN
rates/NNS
would/MD
increase/VB
5/CD
%/NN
in/IN
January/NNP
./.
A/DT
full/JJ
,/,
four-color/JJ
page/NN
in/IN
Newsweek/NNP
will/MD
cost/VB
$/$
100,980/CD
./.
In/IN
mid-October/NNP
,/,
Time/NNP
magazine/NN
lowered/VBD
its/PRP$
guaranteed/VBN
circulation/NN
rate/NN
base/NN
for/IN
1990/CD
while/IN
not/RB
increasing/VBG
ad/NN
page/NN
rates/NNS
;/:
with/IN
a/DT
lower/JJR
circulation/NN
base/NN
,/,
Time/NNP
's/POS
ad/NN
rate/NN
will/MD
be/VB
effectively/RB
7.5/CD
%/NN
higher/JJR
per/IN
subscriber/NN
;/:
a/DT
full/JJ
page/NN
in/IN
Time/NNP
costs/VBZ
about/IN
$/$
120,000/CD
./.
U.S./NNP
News/NNP
has/VBZ
yet/RB
to/TO
announce/VB
its/PRP$
1990/CD
ad/NN
rates/NNS
./.
Newsweek/NNP
said/VBD
it/PRP
will/MD
introduce/VB
the/DT
Circulation/NNP
Credit/NNP
Plan/NNP
,/,
which/WDT
awards/VBZ
space/NN
credits/NNS
to/TO
advertisers/NNS
on/IN
``/``
renewal/NN
advertising/NN
./.
''/''
The/DT
magazine/NN
will/MD
reward/VB
with/IN
``/``
page/NN
bonuses/NNS
''/''
advertisers/NNS
who/WP
in/IN
1990/CD
meet/VBP
or/CC
exceed/VBP
their/PRP$
1989/CD
spending/NN
,/,
as/RB
long/RB
as/IN
they/PRP
spent/VBD
$/$
325,000/CD
in/IN
1989/CD
and/CC
$/$
340,000/CD
in/IN
1990/CD
./.
Mr./NNP
Spoon/NNP
said/VBD
the/DT
plan/NN
is/VBZ
not/RB
an/DT
attempt/NN
to/TO
shore/VB
up/IN
a/DT
decline/NN
in/IN
ad/NN
pages/NNS
in/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
1989/CD
;/:
Newsweek/NNP
's/POS
ad/NN
pages/NNS
totaled/VBD
1,620/CD
,/,
a/DT
drop/NN
of/IN
3.2/CD
%/NN
from/IN
last/JJ
year/NN
,/,
according/VBG
to/TO
Publishers/NNP
Information/NNP
Bureau/NNP
./.
``/``
What/WP
matters/VBZ
is/VBZ
what/WP
advertisers/NNS
are/VBP
paying/VBG
per/IN
page/NN
,/,
and/CC
in/IN
that/DT
department/NN
we/PRP
are/VBP
doing/VBG
fine/RB
this/DT
fall/NN
,/,
''/''
said/VBD
Mr./NNP
Spoon/NNP
./.
Both/DT
Newsweek/NNP
and/CC
U.S./NNP
News/NNP
have/VBP
been/VBN
gaining/VBG
circulation/NN
in/IN
recent/JJ
years/NNS
without/IN
heavy/JJ
use/NN
of/IN
electronic/JJ
giveaways/NNS
to/TO
subscribers/NNS
,/,
such/JJ
as/IN
telephones/NNS
or/CC
watches/NNS
./.
However/RB
,/,
none/NN
of/IN
the/DT
big/JJ
three/CD
weeklies/NNS
recorded/VBD
circulation/NN
gains/NNS
recently/RB
./.
According/VBG
to/TO
Audit/NNP
Bureau/NNP
of/IN
Circulations/NNP
,/,
Time/NNP
,/,
the/DT
largest/JJS
newsweekly/RB
,/,
had/VBD
average/JJ
circulation/NN
of/IN
4,393,237/CD
,/,
a/DT
decrease/NN
of/IN
7.3/CD
%/NN
./.
Newsweek/NNP
's/POS
circulation/NN
for/IN
the/DT
first/JJ
six/CD
months/NNS
of/IN
1989/CD
was/VBD
3,288,453/CD
,/,
flat/JJ
from/IN
the/DT
same/JJ
period/NN
last/JJ
year/NN
./.
U.S./NNP
News/NNP
'/POS
circulation/NN
in/IN
the/DT
same/JJ
time/NN
was/VBD
2,303,328/CD
,/,
down/RB
2.6/CD
%/NN
./.
New/NNP
England/NNP
Electric/NNP
System/NNP
bowed/VBD
out/IN
of/IN
the/DT
bidding/NN
for/IN
Public/NNP
Service/NNP
Co./NNP
of/IN
New/NNP
Hampshire/NNP
,/,
saying/VBG
that/IN
the/DT
risks/NNS
were/VBD
too/RB
high/JJ
and/CC
the/DT
potential/JJ
payoff/NN
too/RB
far/RB
in/IN
the/DT
future/NN
to/TO
justify/VB
a/DT
higher/JJR
offer/NN
./.
The/DT
move/NN
leaves/VBZ
United/NNP
Illuminating/NNP
Co./NNP
and/CC
Northeast/NNP
Utilities/NNP
as/IN
the/DT
remaining/VBG
outside/JJ
bidders/NNS
for/IN
PS/NNP
of/IN
New/NNP
Hampshire/NNP
,/,
which/WDT
also/RB
has/VBZ
proposed/VBN
an/DT
internal/JJ
reorganization/NN
plan/NN
in/IN
Chapter/NN
11/CD
bankruptcy/NN
proceedings/NNS
under/IN
which/WDT
it/PRP
would/MD
remain/VB
an/DT
independent/JJ
company/NN
./.
New/NNP
England/NNP
Electric/NNP
,/,
based/VBN
in/IN
Westborough/NNP
,/,
Mass./NNP
,/,
had/VBD
offered/VBN
$/$
2/CD
billion/CD
to/TO
acquire/VB
PS/NNP
of/IN
New/NNP
Hampshire/NNP
,/,
well/RB
below/IN
the/DT
$/$
2.29/CD
billion/CD
value/NN
United/NNP
Illuminating/NNP
places/NNS
on/IN
its/PRP$
bid/NN
and/CC
the/DT
$/$
2.25/CD
billion/CD
Northeast/NNP
says/VBZ
its/PRP$
bid/NN
is/VBZ
worth/IN
./.
United/NNP
Illuminating/NNP
is/VBZ
based/VBN
in/IN
New/NNP
Haven/NNP
,/,
Conn./NNP
,/,
and/CC
Northeast/NNP
is/VBZ
based/VBN
in/IN
Hartford/NNP
,/,
Conn/NNP
./.
PS/NNP
of/IN
New/NNP
Hampshire/NNP
,/,
Manchester/NNP
,/,
N.H./NNP
,/,
values/VBZ
its/PRP$
internal/JJ
reorganization/NN
plan/NN
at/IN
about/IN
$/$
2.2/CD
billion/CD
./.
John/NNP
Rowe/NNP
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
New/NNP
England/NNP
Electric/NNP
,/,
said/VBD
the/DT
company/NN
's/POS
return/NN
on/IN
equity/NN
could/MD
suffer/VB
if/IN
it/PRP
made/VBD
a/DT
higher/JJR
bid/NN
and/CC
its/PRP$
forecasts/NNS
related/VBN
to/TO
PS/NNP
of/IN
New/NNP
Hampshire/NNP
--/:
such/JJ
as/IN
growth/NN
in/IN
electricity/NN
demand/NN
and/CC
improved/VBN
operating/NN
efficiencies/NNS
--/:
did/VBD
n't/RB
come/VB
true/JJ
./.
``/``
When/WRB
we/PRP
evaluated/VBD
raising/VBG
our/PRP$
bid/NN
,/,
the/DT
risks/NNS
seemed/VBD
substantial/JJ
and/CC
persistent/JJ
over/IN
the/DT
next/JJ
five/CD
years/NNS
,/,
and/CC
the/DT
rewards/NNS
seemed/VBD
a/DT
long/JJ
way/NN
out/IN
./.
That/WDT
got/VBD
hard/RB
to/TO
take/VB
,/,
''/''
he/PRP
added/VBD
./.
Mr./NNP
Rowe/NNP
also/RB
noted/VBD
that/IN
political/JJ
concerns/NNS
also/RB
worried/VBN
New/NNP
England/NNP
Electric/NNP
./.
No/DT
matter/NN
who/WP
owns/VBZ
PS/NNP
of/IN
New/NNP
Hampshire/NNP
,/,
after/IN
it/PRP
emerges/VBZ
from/IN
bankruptcy/NN
proceedings/NNS
its/PRP$
rates/NNS
will/MD
be/VB
among/IN
the/DT
highest/JJS
in/IN
the/DT
nation/NN
,/,
he/PRP
said/VBD
./.
``/``
That/DT
attracts/VBZ
attention/NN
.../:
it/PRP
was/VBD
just/RB
another/DT
one/CD
of/IN
the/DT
risk/NN
factors/NNS
''/''
that/WDT
led/VBD
to/TO
the/DT
company/NN
's/POS
decision/NN
to/TO
withdraw/VB
from/IN
the/DT
bidding/NN
,/,
he/PRP
added/VBD
./.
Wilbur/NNP
Ross/NNP
Jr./NNP
of/IN
Rothschild/NNP
Inc./NNP
,/,
the/DT
financial/JJ
adviser/NN
to/TO
the/DT
troubled/JJ
company/NN
's/POS
equity/NN
holders/NNS
,/,
said/VBD
the/DT
withdrawal/NN
of/IN
New/NNP
England/NNP
Electric/NNP
might/MD
speed/VB
up/IN
the/DT
reorganization/NN
process/NN
./.
The/DT
fact/NN
that/IN
New/NNP
England/NNP
proposed/VBD
lower/JJR
rate/NN
increases/NNS
--/:
4.8/CD
%/NN
over/IN
seven/CD
years/NNS
against/IN
around/IN
5.5/CD
%/NN
boosts/NNS
proposed/VBN
by/IN
the/DT
other/JJ
two/CD
outside/JJ
bidders/NNS
--/:
complicated/IN
negotiations/NNS
with/IN
state/NN
officials/NNS
,/,
Mr./NNP
Ross/NNP
asserted/VBD
./.
``/``
Now/RB
the/DT
field/NN
is/VBZ
less/RBR
cluttered/VBN
,/,
''/''
he/PRP
added/VBD
./.
Separately/RB
,/,
the/DT
Federal/NNP
Energy/NNP
Regulatory/NNP
Commission/NNP
turned/VBD
down/IN
for/IN
now/RB
a/DT
request/NN
by/IN
Northeast/NNP
seeking/VBG
approval/NN
of/IN
its/PRP$
possible/JJ
purchase/NN
of/IN
PS/NNP
of/IN
New/NNP
Hampshire/NNP
./.
Northeast/NNP
said/VBD
it/PRP
would/MD
refile/VB
its/PRP$
request/NN
and/CC
still/RB
hopes/VBZ
for/IN
an/DT
expedited/VBN
review/NN
by/IN
the/DT
FERC/NNP
so/IN
that/IN
it/PRP
could/MD
complete/VB
the/DT
purchase/NN
by/IN
next/JJ
summer/NN
if/IN
its/PRP$
bid/NN
is/VBZ
the/DT
one/NN
approved/VBD
by/IN
the/DT
bankruptcy/NN
court/NN
./.
PS/NNP
of/IN
New/NNP
Hampshire/NNP
shares/NNS
closed/VBD
yesterday/NN
at/IN
$/$
3.75/CD
,/,
off/IN
25/CD
cents/NNS
,/,
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
Norman/NNP
Ricken/NNP
,/,
52/CD
years/NNS
old/JJ
and/CC
former/JJ
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
of/IN
Toys/NNPS
``/``
R/NNP
''/''
Us/NNP
Inc./NNP
,/,
and/CC
Frederick/NNP
Deane/NNP
Jr./NNP
,/,
63/CD
,/,
chairman/NN
of/IN
Signet/NNP
Banking/NNP
Corp./NNP
,/,
were/VBD
elected/VBN
directors/NNS
of/IN
this/DT
consumer/NN
electronics/NNS
and/CC
appliances/NNS
retailing/NN
chain/NN
./.
They/PRP
succeed/VBP
Daniel/NNP
M./NNP
Rexinger/NNP
,/,
retired/VBN
Circuit/NNP
City/NNP
executive/JJ
vice/NN
president/NN
,/,
and/CC
Robert/NNP
R./NNP
Glauber/NNP
,/,
U.S./NNP
Treasury/NNP
undersecretary/NN
,/,
on/IN
the/DT
12-member/JJ
board/NN
./.
Commonwealth/NNP
Edison/NNP
Co./NNP
was/VBD
ordered/VBN
to/TO
refund/VB
about/IN
$/$
250/CD
million/CD
to/TO
its/PRP$
current/JJ
and/CC
former/JJ
ratepayers/NNS
for/IN
illegal/JJ
rates/NNS
collected/VBN
for/IN
cost/NN
overruns/NNS
on/IN
a/DT
nuclear/JJ
power/NN
plant/NN
./.
The/DT
refund/NN
was/VBD
about/IN
$/$
55/CD
million/CD
more/JJR
than/IN
previously/RB
ordered/VBN
by/IN
the/DT
Illinois/NNP
Commerce/NNP
Commission/NNP
and/CC
trade/NN
groups/NNS
said/VBD
it/PRP
may/MD
be/VB
the/DT
largest/JJS
ever/RB
required/VBN
of/IN
a/DT
state/NN
or/CC
local/JJ
utility/NN
./.
State/NN
court/NN
Judge/NNP
Richard/NNP
Curry/NNP
ordered/VBD
Edison/NNP
to/TO
make/VB
average/JJ
refunds/NNS
of/IN
about/IN
$/$
45/CD
to/TO
$/$
50/CD
each/DT
to/TO
Edison/NNP
customers/NNS
who/WP
have/VBP
received/VBN
electric/JJ
service/NN
since/IN
April/NNP
1986/CD
,/,
including/VBG
about/IN
two/CD
million/CD
customers/NNS
who/WP
have/VBP
moved/VBN
during/IN
that/DT
period/NN
./.
Judge/NNP
Curry/NNP
ordered/VBD
the/DT
refunds/NNS
to/TO
begin/VB
Feb./NNP
1/CD
and/CC
said/VBD
that/IN
he/PRP
would/MD
n't/RB
entertain/VB
any/DT
appeals/NNS
or/CC
other/JJ
attempts/NNS
to/TO
block/VB
his/PRP$
order/NN
by/IN
Commonwealth/NNP
Edison/NNP
./.
``/``
The/DT
refund/NN
pool/NN
.../:
may/MD
not/RB
be/VB
held/VBN
hostage/NN
through/IN
another/DT
round/NN
of/IN
appeals/NNS
,/,
''/''
Judge/NNP
Curry/NNP
said/VBD
./.
Commonwealth/NNP
Edison/NNP
said/VBD
it/PRP
is/VBZ
already/RB
appealing/VBG
the/DT
underlying/VBG
commission/NN
order/NN
and/CC
is/VBZ
considering/VBG
appealing/VBG
Judge/NNP
Curry/NNP
's/POS
order/NN
./.
The/DT
exact/JJ
amount/NN
of/IN
the/DT
refund/NN
will/MD
be/VB
determined/VBN
next/JJ
year/NN
based/VBN
on/IN
actual/JJ
collections/NNS
made/VBN
until/IN
Dec./NNP
31/CD
of/IN
this/DT
year/NN
./.
Commonwealth/NNP
Edison/NNP
said/VBD
the/DT
ruling/NN
could/MD
force/VB
it/PRP
to/TO
slash/VB
its/PRP$
1989/CD
earnings/NNS
by/IN
$/$
1.55/CD
a/DT
share/NN
./.
For/IN
1988/CD
,/,
Commonwealth/NNP
Edison/NNP
reported/VBD
earnings/NNS
of/IN
$/$
737.5/CD
million/CD
,/,
or/CC
$/$
3.01/CD
a/DT
share/NN
./.
A/DT
Commonwealth/NNP
Edison/NNP
spokesman/NN
said/VBD
that/IN
tracking/VBG
down/RP
the/DT
two/CD
million/CD
customers/NNS
whose/WP$
addresses/NNS
have/VBP
changed/VBN
during/IN
the/DT
past/JJ
3/CD
1\/2/CD
years/NNS
would/MD
be/VB
``/``
an/DT
administrative/JJ
nightmare/NN
./.
''/''
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
Commonwealth/NNP
Edison/NNP
closed/VBD
at/IN
$/$
38.375/CD
,/,
down/RB
12.5/CD
cents/NNS
./.
The/DT
$/$
2.5/CD
billion/CD
Byron/NNP
1/CD
plant/NN
near/IN
Rockford/NNP
,/,
Ill./NNP
,/,
was/VBD
completed/VBN
in/IN
1985/CD
./.
In/IN
a/DT
disputed/VBN
1985/CD
ruling/NN
,/,
the/DT
Commerce/NNP
Commission/NNP
said/VBD
Commonwealth/NNP
Edison/NNP
could/MD
raise/VB
its/PRP$
electricity/NN
rates/NNS
by/IN
$/$
49/CD
million/CD
to/TO
pay/VB
for/IN
the/DT
plant/NN
./.
But/CC
state/NN
courts/NNS
upheld/VBD
a/DT
challenge/NN
by/IN
consumer/NN
groups/NNS
to/TO
the/DT
commission/NN
's/POS
rate/NN
increase/NN
and/CC
found/VBD
the/DT
rates/NNS
illegal/JJ
./.
The/DT
Illinois/NNP
Supreme/NNP
Court/NNP
ordered/VBD
the/DT
commission/NN
to/TO
audit/VB
Commonwealth/NNP
Edison/NNP
's/POS
construction/NN
expenses/NNS
and/CC
refund/VB
any/DT
unreasonable/JJ
expenses/NNS
./.
The/DT
utility/NN
has/VBZ
been/VBN
collecting/VBG
for/IN
the/DT
plant/NN
's/POS
construction/NN
cost/NN
from/IN
its/PRP$
3.1/CD
million/CD
customers/NNS
subject/JJ
to/TO
a/DT
refund/NN
since/IN
1986/CD
./.
In/IN
August/NNP
,/,
the/DT
commission/NN
ruled/VBD
that/IN
between/IN
$/$
190/CD
million/CD
and/CC
$/$
195/CD
million/CD
of/IN
the/DT
plant/NN
's/POS
construction/NN
cost/NN
was/VBD
unreasonable/JJ
and/CC
should/MD
be/VB
refunded/VBN
,/,
plus/CC
interest/NN
./.
In/IN
his/PRP$
ruling/NN
,/,
Judge/NNP
Curry/NNP
added/VBD
an/DT
additional/JJ
$/$
55/CD
million/CD
to/TO
the/DT
commission/NN
's/POS
calculations/NNS
./.
Last/JJ
month/NN
,/,
Judge/NNP
Curry/NNP
set/VBD
the/DT
interest/NN
rate/NN
on/IN
the/DT
refund/NN
at/IN
9/CD
%/NN
./.
Commonwealth/NNP
Edison/NNP
now/RB
faces/VBZ
an/DT
additional/JJ
court-ordered/JJ
refund/NN
on/IN
its/PRP$
summer\/winter/JJ
rate/NN
differential/JJ
collections/NNS
that/IN
the/DT
Illinois/NNP
Appellate/NNP
Court/NNP
has/VBZ
estimated/VBN
at/IN
$/$
140/CD
million/CD
./.
And/CC
consumer/NN
groups/NNS
hope/VBP
that/IN
Judge/NNP
Curry/NNP
's/POS
Byron/NNP
1/CD
order/NN
may/MD
set/VB
a/DT
precedent/NN
for/IN
a/DT
second/JJ
nuclear/JJ
rate/NN
case/NN
involving/VBG
Commonwealth/NNP
Edison/NNP
's/POS
Braidwood/NNP
2/CD
plant/NN
./.
Commonwealth/NNP
Edison/NNP
is/VBZ
seeking/VBG
about/IN
$/$
245/CD
million/CD
in/IN
rate/NN
increases/NNS
to/TO
pay/VB
for/IN
Braidwood/NNP
2/CD
./.
The/DT
commission/NN
is/VBZ
expected/VBN
to/TO
rule/VB
on/IN
the/DT
Braidwood/NNP
2/CD
case/NN
by/IN
year/NN
end/NN
./.
Last/JJ
year/NN
Commonwealth/NNP
Edison/NNP
had/VBD
to/TO
refund/VB
$/$
72.7/CD
million/CD
for/IN
poor/JJ
performance/NN
of/IN
its/PRP$
LaSalle/NNP
I/NNP
nuclear/JJ
plant/NN
./.
Japan/NNP
's/POS
domestic/JJ
sales/NNS
of/IN
cars/NNS
,/,
trucks/NNS
and/CC
buses/NNS
in/IN
October/NNP
rose/VBD
18/CD
%/NN
from/IN
a/DT
year/NN
earlier/JJR
to/TO
500,004/CD
units/NNS
,/,
a/DT
record/NN
for/IN
the/DT
month/NN
,/,
the/DT
Japan/NNP
Automobile/NNP
Dealers/NNPS
'/POS
Association/NNP
said/VBD
./.
The/DT
strong/JJ
growth/NN
followed/VBD
year-to-year/JJ
increases/NNS
of/IN
21/CD
%/NN
in/IN
August/NNP
and/CC
12/CD
%/NN
in/IN
September/NNP
./.
The/DT
monthly/JJ
sales/NNS
have/VBP
been/VBN
setting/VBG
records/NNS
every/DT
month/NN
since/IN
March/NNP
./.
October/NNP
sales/NNS
,/,
compared/VBN
with/IN
the/DT
previous/JJ
month/NN
,/,
inched/VBD
down/RB
0.4/CD
%/NN
./.
Sales/NNS
of/IN
passenger/NN
cars/NNS
grew/VBD
22/CD
%/NN
from/IN
a/DT
year/NN
earlier/JJR
to/TO
361,376/CD
units/NNS
./.
Sales/NNS
of/IN
medium-sized/JJ
cars/NNS
,/,
which/WDT
benefited/VBD
from/IN
price/NN
reductions/NNS
arising/VBG
from/IN
introduction/NN
of/IN
the/DT
consumption/NN
tax/NN
,/,
more/RBR
than/IN
doubled/VBD
to/TO
30,841/CD
units/NNS
from/IN
13,056/CD
in/IN
October/NNP
1988/CD
./.
Texas/NNP
Instruments/NNPS
Japan/NNP
Ltd./NNP
,/,
a/DT
unit/NN
of/IN
Texas/NNP
Instruments/NNPS
Inc./NNP
,/,
said/VBD
it/PRP
opened/VBD
a/DT
plant/NN
in/IN
South/NNP
Korea/NNP
to/TO
manufacture/VB
control/NN
devices/NNS
./.
The/DT
new/JJ
plant/NN
,/,
located/VBN
in/IN
Chinchon/NNP
about/IN
60/CD
miles/NNS
from/IN
Seoul/NNP
,/,
will/MD
help/VB
meet/VB
increasing/VBG
and/CC
diversifying/VBG
demand/NN
for/IN
control/NN
products/NNS
in/IN
South/NNP
Korea/NNP
,/,
the/DT
company/NN
said/VBD
./.
The/DT
plant/NN
will/MD
produce/VB
control/NN
devices/NNS
used/VBN
in/IN
motor/NN
vehicles/NNS
and/CC
household/NN
appliances/NNS
./.
The/DT
survival/NN
of/IN
spinoff/NN
Cray/NNP
Computer/NNP
Corp./NNP
as/IN
a/DT
fledgling/NN
in/IN
the/DT
supercomputer/NN
business/NN
appears/VBZ
to/TO
depend/VB
heavily/RB
on/IN
the/DT
creativity/NN
--/:
and/CC
longevity/NN
--/:
of/IN
its/PRP$
chairman/NN
and/CC
chief/NN
designer/NN
,/,
Seymour/NNP
Cray/NNP
./.
Not/RB
only/RB
is/VBZ
development/NN
of/IN
the/DT
new/JJ
company/NN
's/POS
initial/JJ
machine/NN
tied/VBD
directly/RB
to/TO
Mr./NNP
Cray/NNP
,/,
so/RB
is/VBZ
its/PRP$
balance/NN
sheet/NN
./.
Documents/NNS
filed/VBN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
on/IN
the/DT
pending/VBG
spinoff/NN
disclosed/VBD
that/IN
Cray/NNP
Research/NNP
Inc./NNP
will/MD
withdraw/VB
the/DT
almost/RB
$/$
100/CD
million/CD
in/IN
financing/NN
it/PRP
is/VBZ
providing/VBG
the/DT
new/JJ
firm/NN
if/IN
Mr./NNP
Cray/NNP
leaves/VBZ
or/CC
if/IN
the/DT
product-design/JJ
project/NN
he/PRP
heads/VBZ
is/VBZ
scrapped/VBN
./.
The/DT
documents/NNS
also/RB
said/VBD
that/IN
although/IN
the/DT
64-year-old/JJ
Mr./NNP
Cray/NNP
has/VBZ
been/VBN
working/VBG
on/IN
the/DT
project/NN
for/IN
more/RBR
than/IN
six/CD
years/NNS
,/,
the/DT
Cray-3/NNP
machine/NN
is/VBZ
at/IN
least/JJS
another/DT
year/NN
away/RB
from/IN
a/DT
fully/RB
operational/JJ
prototype/NN
./.
Moreover/JJR
,/,
there/EX
have/VBP
been/VBN
no/DT
orders/NNS
for/IN
the/DT
Cray-3/NNP
so/RB
far/RB
,/,
though/IN
the/DT
company/NN
says/VBZ
it/PRP
is/VBZ
talking/VBG
with/IN
several/JJ
prospects/NNS
./.
While/IN
many/JJ
of/IN
the/DT
risks/NNS
were/VBD
anticipated/VBN
when/WRB
Minneapolis-based/JJ
Cray/NNP
Research/NNP
first/RB
announced/VBD
the/DT
spinoff/NN
in/IN
May/NNP
,/,
the/DT
strings/NNS
it/PRP
attached/VBD
to/TO
the/DT
financing/NN
had/VBD
n't/RB
been/VBN
made/VBN
public/JJ
until/IN
yesterday/NN
./.
``/``
We/PRP
did/VBD
n't/RB
have/VB
much/RB
of/IN
a/DT
choice/NN
,/,
''/''
Cray/NNP
Computer/NNP
's/POS
chief/NN
financial/JJ
officer/NN
,/,
Gregory/NNP
Barnum/NNP
,/,
said/VBD
in/IN
an/DT
interview/NN
./.
``/``
The/DT
theory/NN
is/VBZ
that/IN
Seymour/NNP
is/VBZ
the/DT
chief/JJ
designer/NN
of/IN
the/DT
Cray-3/NNP
,/,
and/CC
without/IN
him/PRP
it/PRP
could/MD
not/RB
be/VB
completed/VBN
./.
Cray/NNP
Research/NNP
did/VBD
not/RB
want/VB
to/TO
fund/VB
a/DT
project/NN
that/WDT
did/VBD
not/RB
include/VB
Seymour/NNP
./.
''/''
The/DT
documents/NNS
also/RB
said/VBD
that/IN
Cray/NNP
Computer/NNP
anticipates/VBZ
needing/VBG
perhaps/RB
another/DT
$/$
120/CD
million/CD
in/IN
financing/NN
beginning/VBG
next/JJ
September/NNP
./.
But/CC
Mr./NNP
Barnum/NNP
called/VBD
that/IN
``/``
a/DT
worst-case/JJ
''/''
scenario/NN
./.
The/DT
filing/NN
on/IN
the/DT
details/NNS
of/IN
the/DT
spinoff/NN
caused/VBD
Cray/NNP
Research/NNP
stock/NN
to/TO
jump/VB
$/$
2.875/CD
yesterday/NN
to/TO
close/VB
at/IN
$/$
38/CD
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
Analysts/NNS
noted/VBD
yesterday/NN
that/IN
Cray/NNP
Research/NNP
's/POS
decision/NN
to/TO
link/VB
its/PRP$
$/$
98.3/CD
million/CD
promissory/JJ
note/NN
to/TO
Mr./NNP
Cray/NNP
's/POS
presence/NN
will/MD
complicate/VB
a/DT
valuation/NN
of/IN
the/DT
new/JJ
company/NN
./.
``/``
It/PRP
has/VBZ
to/TO
be/VB
considered/VBN
as/IN
an/DT
additional/JJ
risk/NN
for/IN
the/DT
investor/NN
,/,
''/''
said/VBD
Gary/NNP
P./NNP
Smaby/NNP
of/IN
Smaby/NNP
Group/NNP
Inc./NNP
,/,
Minneapolis/NNP
./.
``/``
Cray/NNP
Computer/NNP
will/MD
be/VB
a/DT
concept/NN
stock/NN
,/,
''/''
he/PRP
said/VBD
./.
``/``
You/PRP
either/RB
believe/VBP
Seymour/NNP
can/MD
do/VB
it/PRP
again/RB
or/CC
you/PRP
do/VBP
n't/RB
./.
''/''
Besides/IN
the/DT
designer/NN
's/POS
age/NN
,/,
other/JJ
risk/NN
factors/NNS
for/IN
Mr./NNP
Cray/NNP
's/POS
new/JJ
company/NN
include/VBP
the/DT
Cray-3/NNP
's/POS
tricky/JJ
,/,
unproven/JJ
chip/NN
technology/NN
./.
The/DT
SEC/NNP
documents/NNS
describe/VBP
those/DT
chips/NNS
,/,
which/WDT
are/VBP
made/VBN
of/IN
gallium/NN
arsenide/NN
,/,
as/IN
being/VBG
so/RB
fragile/JJ
and/CC
minute/JJ
they/PRP
will/MD
require/VB
special/JJ
robotic/JJ
handling/NN
equipment/NN
./.
In/IN
addition/NN
,/,
the/DT
Cray-3/NNP
will/MD
contain/VB
16/CD
processors/NNS
--/:
twice/RB
as/RB
many/JJ
as/IN
the/DT
largest/JJS
current/JJ
supercomputer/NN
./.
Cray/NNP
Computer/NNP
also/RB
will/MD
face/VB
intense/JJ
competition/NN
,/,
not/RB
only/RB
from/IN
Cray/NNP
Research/NNP
,/,
which/WDT
has/VBZ
about/RB
60/CD
%/NN
of/IN
the/DT
world-wide/JJ
supercomputer/NN
market/NN
and/CC
which/WDT
is/VBZ
expected/VBN
to/TO
roll/VB
out/RP
the/DT
C-90/NN
machine/NN
,/,
a/DT
direct/JJ
competitor/NN
with/IN
the/DT
Cray-3/NNP
,/,
in/IN
1991/CD
./.
The/DT
spinoff/NN
also/RB
will/MD
compete/VB
with/IN
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
and/CC
Japan/NNP
's/POS
Big/JJ
Three/CD
--/:
Hitachi/NNP
Ltd./NNP
,/,
NEC/NNP
Corp./NNP
and/CC
Fujitsu/NNP
Ltd/NNP
./.
The/DT
new/JJ
company/NN
said/VBD
it/PRP
believes/VBZ
there/EX
are/VBP
fewer/JJR
than/IN
100/CD
potential/JJ
customers/NNS
for/IN
supercomputers/NNS
priced/VBN
between/IN
$/$
15/CD
million/CD
and/CC
$/$
30/CD
million/CD
--/:
presumably/RB
the/DT
Cray-3/NNP
price/NN
range/NN
./.
Under/IN
terms/NNS
of/IN
the/DT
spinoff/NN
,/,
Cray/NNP
Research/NNP
stockholders/NNS
are/VBP
to/TO
receive/VB
one/CD
Cray/NNP
Computer/NNP
share/NN
for/IN
every/DT
two/CD
Cray/NNP
Research/NNP
shares/NNS
they/PRP
own/VBP
in/IN
a/DT
distribution/NN
expected/VBN
to/TO
occur/VB
in/IN
about/IN
two/CD
weeks/NNS
./.
No/DT
price/NN
for/IN
the/DT
new/JJ
shares/NNS
has/VBZ
been/VBN
set/VBN
./.
Instead/RB
,/,
the/DT
companies/NNS
will/MD
leave/VB
it/PRP
up/IN
to/TO
the/DT
marketplace/NN
to/TO
decide/VB
./.
Cray/NNP
Computer/NNP
has/VBZ
applied/VBN
to/TO
trade/VB
on/IN
Nasdaq/NNP
./.
Analysts/NNS
calculate/VBP
Cray/NNP
Computer/NNP
's/POS
initial/JJ
book/NN
value/NN
at/IN
about/IN
$/$
4.75/CD
a/DT
share/NN
./.
Along/IN
with/IN
the/DT
note/NN
,/,
Cray/NNP
Research/NNP
is/VBZ
transferring/VBG
about/IN
$/$
53/CD
million/CD
in/IN
assets/NNS
,/,
primarily/RB
those/DT
related/VBN
to/TO
the/DT
Cray-3/CD
development/NN
,/,
which/WDT
has/VBZ
been/VBN
a/DT
drain/NN
on/IN
Cray/NNP
Research/NNP
's/POS
earnings/NNS
./.
Pro-forma/JJ
balance/NN
sheets/NNS
clearly/RB
show/VBP
why/WRB
Cray/NNP
Research/NNP
favored/VBD
the/DT
spinoff/NN
./.
Without/IN
the/DT
Cray-3/NNP
research/NN
and/CC
development/NN
expenses/NNS
,/,
the/DT
company/NN
would/MD
have/VB
been/VBN
able/JJ
to/TO
report/VB
a/DT
profit/NN
of/IN
$/$
19.3/CD
million/CD
for/IN
the/DT
first/JJ
half/DT
of/IN
1989/CD
rather/RB
than/IN
the/DT
$/$
5.9/CD
million/CD
it/PRP
posted/VBD
./.
On/IN
the/DT
other/JJ
hand/NN
,/,
had/VBD
it/PRP
existed/VBN
then/RB
,/,
Cray/NNP
Computer/NNP
would/MD
have/VB
incurred/VBN
a/DT
$/$
20.5/CD
million/CD
loss/NN
./.
Mr./NNP
Cray/NNP
,/,
who/WP
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
,/,
will/MD
work/VB
for/IN
the/DT
new/JJ
Colorado/NNP
Springs/NNPS
,/,
Colo./NNP
,/,
company/NN
as/IN
an/DT
independent/JJ
contractor/NN
--/:
the/DT
arrangement/NN
he/PRP
had/VBD
with/IN
Cray/NNP
Research/NNP
./.
Regarded/VBN
as/IN
the/DT
father/NN
of/IN
the/DT
supercomputer/NN
,/,
Mr./NNP
Cray/NNP
was/VBD
paid/VBN
$/$
600,000/CD
at/IN
Cray/NNP
Research/NNP
last/JJ
year/NN
./.
At/IN
Cray/NNP
Computer/NNP
,/,
he/PRP
will/MD
be/VB
paid/VBN
$/$
240,000/CD
./.
Besides/IN
Messrs./NNP
Cray/NNP
and/CC
Barnum/NNP
,/,
other/JJ
senior/JJ
management/NN
at/IN
the/DT
company/NN
includes/VBZ
Neil/NNP
Davenport/NNP
,/,
47/CD
,/,
president/NN
and/CC
chief/NN
executive/NN
officer/NN
;/:
Joseph/NNP
M./NNP
Blanchard/NNP
,/,
37/CD
,/,
vice/NN
president/NN
,/,
engineering/NN
;/:
Malcolm/NNP
A./NN
Hammerton/NNP
,/,
40/CD
,/,
vice/NN
president/NN
,/,
software/NN
;/:
and/CC
Douglas/NNP
R./NNP
Wheeland/NNP
,/,
45/CD
,/,
vice/NN
president/NN
,/,
hardware/NN
./.
All/DT
came/VBD
from/IN
Cray/NNP
Research/NNP
./.
Cray/NNP
Computer/NNP
,/,
which/WDT
currently/RB
employs/VBZ
241/CD
people/NNS
,/,
said/VBD
it/PRP
expects/VBZ
a/DT
work/NN
force/NN
of/IN
450/CD
by/IN
the/DT
end/NN
of/IN
1990/CD
./.
John/NNP
R./NNP
Stevens/NNP
,/,
49/CD
years/NNS
old/JJ
,/,
was/VBD
named/VBN
senior/JJ
executive/NN
vice/NN
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
,/,
both/DT
new/JJ
positions/NNS
./.
He/PRP
will/MD
continue/VB
to/TO
report/VB
to/TO
Donald/NNP
Pardus/NNP
,/,
president/NN
and/CC
chief/NN
executive/NN
officer/NN
./.
Mr./NNP
Stevens/NNP
was/VBD
executive/NN
vice/NN
president/NN
of/IN
this/DT
electric-utility/NN
holding/NN
company/NN
./.
Arthur/NNP
A./NNP
Hatch/NNP
,/,
59/CD
,/,
was/VBD
named/VBN
executive/NN
vice/NN
president/NN
of/IN
the/DT
company/NN
./.
He/PRP
was/VBD
previously/RB
president/NN
of/IN
the/DT
company/NN
's/POS
Eastern/NNP
Edison/NNP
Co./NNP
unit/NN
./.
John/NNP
D./NNP
Carney/NNP
,/,
45/CD
,/,
was/VBD
named/VBN
to/TO
succeed/VB
Mr./NNP
Hatch/NNP
as/IN
president/NN
of/IN
Eastern/NNP
Edison/NNP
./.
Previously/RB
he/PRP
was/VBD
vice/RB
president/NN
of/IN
Eastern/NNP
Edison/NNP
./.
Robert/NNP
P./NNP
Tassinari/NNP
,/,
63/CD
,/,
was/VBD
named/VBN
senior/JJ
vice/NN
president/NN
of/IN
Eastern/NNP
Utilities/NNPS
./.
He/PRP
was/VBD
previously/RB
vice/NN
president/NN
./.
The/DT
U.S./NNP
,/,
claiming/VBG
some/DT
success/NN
in/IN
its/PRP$
trade/NN
diplomacy/NN
,/,
removed/VBD
South/NNP
Korea/NNP
,/,
Taiwan/NNP
and/CC
Saudi/NNP
Arabia/NNP
from/IN
a/DT
list/NN
of/IN
countries/NNS
it/PRP
is/VBZ
closely/RB
watching/VBG
for/IN
allegedly/RB
failing/VBG
to/TO
honor/VB
U.S./NNP
patents/NNS
,/,
copyrights/NNS
and/CC
other/JJ
intellectual-property/JJ
rights/NNS
./.
However/RB
,/,
five/CD
other/JJ
countries/NNS
--/:
China/NNP
,/,
Thailand/NNP
,/,
India/NNP
,/,
Brazil/NNP
and/CC
Mexico/NNP
--/:
will/MD
remain/VB
on/IN
that/DT
so-called/JJ
priority/NN
watch/NN
list/NN
as/IN
a/DT
result/NN
of/IN
an/DT
interim/JJ
review/NN
,/,
U.S./NNP
Trade/NNP
Representative/NNP
Carla/NNP
Hills/NNP
announced/VBD
./.
Under/IN
the/DT
new/JJ
U.S./NNP
trade/NN
law/NN
,/,
those/DT
countries/NNS
could/MD
face/VB
accelerated/JJ
unfair-trade/JJ
investigations/NNS
and/CC
stiff/JJ
trade/NN
sanctions/NNS
if/IN
they/PRP
do/VBP
n't/RB
improve/VB
their/PRP$
protection/NN
of/IN
intellectual/JJ
property/NN
by/IN
next/JJ
spring/NN
./.
Mrs./NNP
Hills/NNP
said/VBD
many/JJ
of/IN
the/DT
25/CD
countries/NNS
that/IN
she/PRP
placed/VBD
under/IN
varying/VBG
degrees/NNS
of/IN
scrutiny/NN
have/VBP
made/VBN
``/``
genuine/JJ
progress/NN
''/''
on/IN
this/DT
touchy/JJ
issue/NN
./.
She/PRP
said/VBD
there/EX
is/VBZ
``/``
growing/VBG
realization/NN
''/''
around/IN
the/DT
world/NN
that/DT
denial/NN
of/IN
intellectual-property/JJ
rights/NNS
harms/VBZ
all/DT
trading/VBG
nations/NNS
,/,
and/CC
particularly/RB
the/DT
``/``
creativity/NN
and/CC
inventiveness/NN
of/IN
an/DT
country/NN
's/POS
own/JJ
citizens/NNS
./.
''/''
U.S./NNP
trade/NN
negotiators/NNS
argue/VBP
that/IN
countries/NNS
with/IN
inadequate/JJ
protections/NNS
for/IN
intellectual-property/JJ
rights/NNS
could/MD
be/VB
hurting/VBG
themselves/PRP
by/IN
discouraging/VBG
their/PRP$
own/JJ
scientists/NNS
and/CC
authors/NNS
and/CC
by/IN
deterring/VBG
U.S./NNP
high-technology/NN
firms/NNS
from/IN
investing/VBG
or/CC
marketing/VBG
their/PRP$
best/JJS
products/NNS
there/RB
./.
Mrs./NNP
Hills/NNP
lauded/VBD
South/NNP
Korea/NNP
for/IN
creating/VBG
an/DT
intellectual-property/JJ
task/NN
force/NN
and/CC
special/JJ
enforcement/NN
teams/NNS
of/IN
police/NN
officers/NNS
and/CC
prosecutors/NNS
trained/VBN
to/TO
pursue/VB
movie/NN
and/CC
book/NN
pirates/NNS
./.
Seoul/NNP
also/RB
has/VBZ
instituted/VBN
effective/JJ
search-and-seizure/JJ
procedures/NNS
to/TO
aid/VB
these/DT
teams/NNS
,/,
she/PRP
said/VBD
./.
Taiwan/NNP
has/VBZ
improved/VBN
its/PRP$
standing/NN
with/IN
the/DT
U.S./NNP
by/IN
initialing/VBG
a/DT
bilateral/JJ
copyright/NN
agreement/NN
,/,
amending/VBG
its/PRP$
trademark/NN
law/NN
and/CC
introducing/VBG
legislation/NN
to/TO
protect/VB
foreign/JJ
movie/NN
producers/NNS
from/IN
unauthorized/JJ
showings/NNS
of/IN
their/PRP$
films/NNS
./.
That/DT
measure/NN
could/MD
compel/VB
Taipei/NNP
's/POS
growing/VBG
number/NN
of/IN
small/JJ
video-viewing/JJ
parlors/NNS
to/TO
pay/VB
movie/NN
producers/NNS
for/IN
showing/VBG
their/PRP$
films/NNS
./.
Saudi/NNP
Arabia/NNP
,/,
for/IN
its/PRP$
part/NN
,/,
has/VBZ
vowed/VBN
to/TO
enact/VB
a/DT
copyright/NN
law/NN
compatible/JJ
with/IN
international/JJ
standards/NNS
and/CC
to/TO
apply/VB
the/DT
law/NN
to/TO
computer/NN
software/NN
as/RB
well/RB
as/IN
to/TO
literary/JJ
works/NNS
,/,
Mrs./NNP
Hills/NNP
said/VBD
./.
These/DT
three/CD
countries/NNS
are/VBP
n't/RB
completely/RB
off/IN
the/DT
hook/NN
,/,
though/RB
./.
They/PRP
will/MD
remain/VB
on/IN
a/DT
lower-priority/JJ
list/NN
that/WDT
includes/VBZ
17/CD
other/JJ
countries/NNS
./.
Those/DT
countries/NNS
--/:
including/IN
Japan/NNP
,/,
Italy/NNP
,/,
Canada/NNP
,/,
Greece/NNP
and/CC
Spain/NNP
--/:
are/VBP
still/RB
of/IN
some/DT
concern/NN
to/TO
the/DT
U.S./NNP
but/CC
are/VBP
deemed/VBN
to/TO
pose/VB
less-serious/JJ
problems/NNS
for/IN
American/JJ
patent/NN
and/CC
copyright/NN
owners/NNS
than/IN
those/DT
on/IN
the/DT
``/``
priority/NN
''/''
list/NN
./.
Gary/NNP
Hoffman/NNP
,/,
a/DT
Washington/NNP
lawyer/NN
specializing/VBG
in/IN
intellectual-property/JJ
cases/NNS
,/,
said/VBD
the/DT
threat/NN
of/IN
U.S./NNP
retaliation/NN
,/,
combined/VBN
with/IN
a/DT
growing/VBG
recognition/NN
that/IN
protecting/VBG
intellectual/JJ
property/NN
is/VBZ
in/IN
a/DT
country/NN
's/POS
own/JJ
interest/NN
,/,
prompted/VBD
the/DT
improvements/NNS
made/VBN
by/IN
South/NNP
Korea/NNP
,/,
Taiwan/NNP
and/CC
Saudi/NNP
Arabia/NNP
./.
``/``
What/WP
this/DT
tells/VBZ
us/PRP
is/VBZ
that/DT
U.S./NNP
trade/NN
law/NN
is/VBZ
working/VBG
,/,
''/''
he/PRP
said/VBD
./.
He/PRP
said/VBD
Mexico/NNP
could/MD
be/VB
one/CD
of/IN
the/DT
next/JJ
countries/NNS
to/TO
be/VB
removed/VBN
from/IN
the/DT
priority/NN
list/NN
because/IN
of/IN
its/PRP$
efforts/NNS
to/TO
craft/VB
a/DT
new/JJ
patent/NN
law/NN
./.
Mrs./NNP
Hills/NNP
said/VBD
that/IN
the/DT
U.S./NNP
is/VBZ
still/RB
concerned/VBN
about/IN
``/``
disturbing/JJ
developments/NNS
in/IN
Turkey/NNP
and/CC
continuing/VBG
slow/JJ
progress/NN
in/IN
Malaysia/NNP
./.
''/''
She/PRP
did/VBD
n't/RB
elaborate/JJ
,/,
although/IN
earlier/JJR
U.S./NNP
trade/NN
reports/NNS
have/VBP
complained/VBN
of/IN
videocassette/NN
piracy/NN
in/IN
Malaysia/NNP
and/CC
disregard/NN
for/IN
U.S./NNP
pharmaceutical/JJ
patents/NNS
in/IN
Turkey/NNP
./.
The/DT
1988/CD
trade/NN
act/NN
requires/VBZ
Mrs./NNP
Hills/NNP
to/TO
issue/VB
another/DT
review/NN
of/IN
the/DT
performance/NN
of/IN
these/DT
countries/NNS
by/IN
April/NNP
30/CD
./.
So/IN
far/RB
,/,
Mrs./NNP
Hills/NNP
has/VBZ
n't/RB
deemed/VBD
any/DT
cases/NNS
bad/JJ
enough/RB
to/TO
merit/VB
an/DT
accelerated/VBN
investigation/NN
under/IN
the/DT
so-called/JJ
special/JJ
301/CD
provision/NN
of/IN
the/DT
act/NN
./.
Argentina/NNP
said/VBD
it/PRP
will/MD
ask/VB
creditor/NN
banks/NNS
to/TO
halve/VB
its/PRP$
foreign/JJ
debt/NN
of/IN
$/$
64/CD
billion/CD
--/:
the/DT
third-highest/JJS
in/IN
the/DT
developing/VBG
world/NN
./.
The/DT
declaration/NN
by/IN
Economy/NNP
Minister/NNP
Nestor/NNP
Rapanelli/NNP
is/VBZ
believed/VBN
to/TO
be/VB
the/DT
first/JJ
time/NN
such/JJ
an/DT
action/NN
has/VBZ
been/VBN
called/VBN
for/IN
by/IN
an/DT
Argentine/JJ
official/NN
of/IN
such/JJ
stature/NN
./.
The/DT
Latin/NNP
American/NNP
nation/NN
has/VBZ
paid/VBN
very/RB
little/RB
on/IN
its/PRP$
debt/NN
since/IN
early/JJ
last/JJ
year/NN
./.
``/``
Argentina/NNP
aspires/VBZ
to/TO
reach/VB
a/DT
reduction/NN
of/IN
50/CD
%/NN
in/IN
the/DT
value/NN
of/IN
its/PRP$
external/JJ
debt/NN
,/,
''/''
Mr./NNP
Rapanelli/NNP
said/VBD
through/IN
his/PRP$
spokesman/NN
,/,
Miguel/NNP
Alurralde/NNP
./.
Mr./NNP
Rapanelli/NNP
met/VBD
in/IN
August/NNP
with/IN
U.S./NNP
Assistant/NNP
Treasury/NNP
Secretary/NNP
David/NNP
Mulford/NNP
./.
Argentine/JJ
negotiator/NN
Carlos/NNP
Carballo/NNP
was/VBD
in/IN
Washington/NNP
and/CC
New/NNP
York/NNP
this/DT
week/NN
to/TO
meet/VB
with/IN
banks/NNS
./.
Mr./NNP
Rapanelli/NNP
recently/RB
has/VBZ
said/VBD
the/DT
government/NN
of/IN
President/NNP
Carlos/NNP
Menem/NNP
,/,
who/WP
took/VBD
office/NN
July/NNP
8/CD
,/,
feels/VBZ
a/DT
significant/JJ
reduction/NN
of/IN
principal/NN
and/CC
interest/NN
is/VBZ
the/DT
only/JJ
way/NN
the/DT
debt/NN
problem/NN
may/MD
be/VB
solved/VBN
./.
But/CC
he/PRP
has/VBZ
not/RB
said/VBD
before/IN
that/IN
the/DT
country/NN
wants/VBZ
half/PDT
the/DT
debt/NN
forgiven/VBN
./.
its/PRP$
centennial/NN
year/NN
,/,
The/NNP
Wall/NNP
Street/NNP
Journal/NNP
will/MD
report/VB
events/NNS
of/IN
the/DT
past/JJ
century/NN
that/WDT
stand/VBP
as/IN
milestones/NNS
of/IN
American/JJ
business/NN
history/NN
./.
THREE/CD
COMPUTERS/NNS
THAT/WDT
CHANGED/VBD
the/DT
face/NN
of/IN
personal/JJ
computing/NN
were/VBD
launched/VBN
in/IN
1977/CD
./.
That/DT
year/NN
the/DT
Apple/NNP
II/NNP
,/,
Commodore/NNP
Pet/NNP
and/CC
Tandy/NNP
TRS-80/NNP
came/VBD
to/TO
market/NN
./.
The/DT
computers/NNS
were/VBD
crude/JJ
by/IN
today/NN
's/POS
standards/NNS
./.
Apple/NNP
II/NNP
owners/NNS
,/,
for/IN
example/NN
,/,
had/VBD
to/TO
use/VB
their/PRP$
television/NN
sets/NNS
as/IN
screens/NNS
and/CC
stored/VBD
data/NNS
on/IN
audiocassettes/NNS
./.
But/CC
Apple/NNP
II/NNP
was/VBD
a/DT
major/JJ
advance/NN
from/IN
Apple/NNP
I/NNP
,/,
which/WDT
was/VBD
built/VBN
in/IN
a/DT
garage/NN
by/IN
Stephen/NNP
Wozniak/NNP
and/CC
Steven/NNP
Jobs/NNP
for/IN
hobbyists/NNS
such/JJ
as/IN
the/DT
Homebrew/NNP
Computer/NNP
Club/NNP
./.
In/IN
addition/NN
,/,
the/DT
Apple/NNP
II/NNP
was/VBD
an/DT
affordable/JJ
$/$
1,298/CD
./.
Crude/JJ
as/IN
they/PRP
were/VBD
,/,
these/DT
early/JJ
PCs/NNS
triggered/VBD
explosive/JJ
product/NN
development/NN
in/IN
desktop/NN
models/NNS
for/IN
the/DT
home/NN
and/CC
office/NN
./.
Big/JJ
mainframe/NN
computers/NNS
for/IN
business/NN
had/VBD
been/VBN
around/IN
for/IN
years/NNS
./.
But/CC
the/DT
new/JJ
1977/CD
PCs/NNS
--/:
unlike/JJ
earlier/JJR
built-from-kit/JJ
types/NNS
such/JJ
as/IN
the/DT
Altair/NNP
,/,
Sol/NNP
and/CC
IMSAI/NNP
--/:
had/VBD
keyboards/NNS
and/CC
could/MD
store/VB
about/IN
two/CD
pages/NNS
of/IN
data/NNS
in/IN
their/PRP$
memories/NNS
./.
Current/JJ
PCs/NNS
are/VBP
more/RBR
than/IN
50/CD
times/NNS
faster/JJR
and/CC
have/VBP
memory/NN
capacity/NN
500/CD
times/NNS
greater/JJR
than/IN
their/PRP$
1977/CD
counterparts/NNS
./.
There/EX
were/VBD
many/JJ
pioneer/NN
PC/NN
contributors/NNS
./.
William/NNP
Gates/NNP
and/CC
Paul/NNP
Allen/NNP
in/IN
1975/CD
developed/VBD
an/DT
early/JJ
language-housekeeper/JJ
system/NN
for/IN
PCs/NNS
,/,
and/CC
Gates/NNP
became/VBD
an/DT
industry/NN
billionaire/NN
six/CD
years/NNS
after/IN
IBM/NNP
adapted/VBD
one/CD
of/IN
these/DT
versions/NNS
in/IN
1981/CD
./.
Alan/NNP
F./NNP
Shugart/NNP
,/,
currently/RB
chairman/NN
of/IN
Seagate/NNP
Technology/NNP
,/,
led/VBD
the/DT
team/NN
that/WDT
developed/VBD
the/DT
disk/NN
drives/NNS
for/IN
PCs/NNS
./.
Dennis/NNP
Hayes/NNP
and/CC
Dale/NNP
Heatherington/NNP
,/,
two/CD
Atlanta/NNP
engineers/NNS
,/,
were/VBD
co-developers/NNS
of/IN
the/DT
internal/JJ
modems/NNS
that/WDT
allow/VBP
PCs/NNS
to/TO
share/VB
data/NNS
via/IN
the/DT
telephone/NN
./.
IBM/NNP
,/,
the/DT
world/NN
leader/NN
in/IN
computers/NNS
,/,
did/VBD
n't/RB
offer/VB
its/PRP$
first/JJ
PC/NN
until/IN
August/NNP
1981/CD
as/IN
many/JJ
other/JJ
companies/NNS
entered/VBD
the/DT
market/NN
./.
Today/NN
,/,
PC/NN
shipments/NNS
annually/RB
total/VBP
some/DT
$/$
38.3/CD
billion/CD
world-wide/JJ
./.
F.H./NNP
Faulding/NNP
&/CC
Co./NNP
,/,
an/DT
Australian/JJ
pharmaceuticals/NNS
company/NN
,/,
said/VBD
its/PRP$
Moleculon/NNP
Inc./NNP
affiliate/NN
acquired/VBD
Kalipharma/NNP
Inc./NNP
for/IN
$/$
23/CD
million/CD
./.
Kalipharma/NNP
is/VBZ
a/DT
New/JJ
Jersey-based/JJ
pharmaceuticals/NNS
concern/NN
that/WDT
sells/VBZ
products/NNS
under/IN
the/DT
Purepac/NNP
label/NN
./.
Faulding/NNP
said/VBD
it/PRP
owns/VBZ
33/CD
%/NN
of/IN
Moleculon/NNP
's/POS
voting/NN
stock/NN
and/CC
has/VBZ
an/DT
agreement/NN
to/TO
acquire/VB
an/DT
additional/JJ
19/CD
%/NN
./.
That/DT
stake/NN
,/,
together/RB
with/IN
its/PRP$
convertible/JJ
preferred/VBN
stock/NN
holdings/NNS
,/,
gives/VBZ
Faulding/NNP
the/DT
right/NN
to/TO
increase/VB
its/PRP$
interest/NN
to/TO
70/CD
%/NN
of/IN
Moleculon/NNP
's/POS
voting/NN
stock/NN
./.
Oil/NN
production/NN
from/IN
Australia/NNP
's/POS
Bass/NNP
Strait/NNP
fields/NNS
will/MD
be/VB
raised/VBN
by/IN
11,000/CD
barrels/NNS
a/DT
day/NN
to/TO
about/IN
321,000/CD
barrels/NNS
with/IN
the/DT
launch/NN
of/IN
the/DT
Whiting/NNP
field/NN
,/,
the/DT
first/JJ
of/IN
five/CD
small/JJ
fields/NNS
scheduled/VBN
to/TO
be/VB
brought/VBN
into/IN
production/NN
before/IN
the/DT
end/NN
of/IN
1990/CD
./.
Esso/NNP
Australia/NNP
Ltd./NNP
,/,
a/DT
unit/NN
of/IN
New/JJ
York-based/JJ
Exxon/NNP
Corp./NNP
,/,
and/CC
Broken/NNP
Hill/NNP
Pty./NNP
operate/VBP
the/DT
fields/NNS
in/IN
a/DT
joint/JJ
venture/NN
./.
Esso/NNP
said/VBD
the/DT
Whiting/NNP
field/NN
started/VBD
production/NN
Tuesday/NNP
./.
Output/NN
will/MD
be/VB
gradually/RB
increased/VBN
until/IN
it/PRP
reaches/VBZ
about/IN
11,000/CD
barrels/NNS
a/DT
day/NN
./.
The/DT
field/NN
has/VBZ
reserves/NNS
of/IN
21/CD
million/CD
barrels/NNS
./.
Reserves/NNS
for/IN
the/DT
five/CD
new/JJ
fields/NNS
total/VBP
50/CD
million/CD
barrels/NNS
./.
The/DT
Perch/NNP
and/CC
Dolphin/NNP
fields/NNS
are/VBP
expected/VBN
to/TO
start/VB
producing/VBG
early/JJ
next/JJ
year/NN
,/,
and/CC
the/DT
Seahorse/NNP
and/CC
Tarwhine/NNP
fields/NNS
later/JJ
next/JJ
year/NN
./.
Esso/NN
said/VBD
the/DT
fields/NNS
were/VBD
developed/VBN
after/IN
the/DT
Australian/JJ
government/NN
decided/VBD
in/IN
1987/CD
to/TO
make/VB
the/DT
first/JJ
30/CD
million/CD
barrels/NNS
from/IN
new/JJ
fields/NNS
free/JJ
of/IN
excise/JJ
tax/NN
./.
R.P./NNP
Scherer/NNP
Corp./NNP
said/VBD
it/PRP
completed/VBD
the/DT
$/$
10.2/CD
million/CD
sale/NN
of/IN
its/PRP$
Southern/NNP
Optical/NNP
subsidiary/NN
to/TO
a/DT
group/NN
led/VBD
by/IN
the/DT
unit/NN
's/POS
president/NN
,/,
Thomas/NNP
R./NNP
Sloan/NNP
,/,
and/CC
other/JJ
managers/NNS
./.
Following/VBG
the/DT
acquisition/NN
of/IN
R.P./NNP
Scherer/NNP
by/IN
a/DT
buy-out/JJ
group/NN
led/VBN
by/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
earlier/JJR
this/DT
year/NN
,/,
the/DT
maker/NN
of/IN
gelatin/NN
capsules/NNS
decided/VBD
to/TO
divest/VB
itself/PRP
of/IN
certain/JJ
of/IN
its/PRP$
non-encapsulating/JJ
businesses/NNS
./.
The/DT
sale/NN
of/IN
Southern/NNP
Optical/NNP
is/VBZ
a/DT
part/NN
of/IN
the/DT
program/NN
./.
The/DT
White/NNP
House/NNP
said/VBD
President/NNP
Bush/NNP
has/VBZ
approved/VBN
duty-free/JJ
treatment/NN
for/IN
imports/NNS
of/IN
certain/JJ
types/NNS
of/IN
watches/NNS
that/WDT
are/VBP
n't/RB
produced/VBN
in/IN
``/``
significant/JJ
quantities/NNS
''/''
in/IN
the/DT
U.S./NNP
,/,
the/DT
Virgin/NNP
Islands/NNPS
and/CC
other/JJ
U.S./NNP
possessions/NNS
./.
The/DT
action/NN
came/VBD
in/IN
response/NN
to/TO
a/DT
petition/NN
filed/VBN
by/IN
Timex/NNP
Inc./NNP
for/IN
changes/NNS
in/IN
the/DT
U.S./NNP
Generalized/NNP
System/NNP
of/IN
Preferences/NNPS
for/IN
imports/NNS
from/IN
developing/VBG
nations/NNS
./.
Previously/RB
,/,
watch/NN
imports/NNS
were/VBD
denied/VBN
such/JJ
duty-free/JJ
treatment/NN
./.
Timex/NNP
had/VBD
requested/VBN
duty-free/JJ
treatment/NN
for/IN
many/JJ
types/NNS
of/IN
watches/NNS
,/,
covered/VBN
by/IN
58/CD
different/JJ
U.S./NNP
tariff/NN
classifications/NNS
./.
The/DT
White/NNP
House/NNP
said/VBD
Mr./NNP
Bush/NNP
decided/VBD
to/TO
grant/VB
duty-free/JJ
status/NN
for/IN
18/CD
categories/NNS
,/,
but/CC
turned/VBD
down/RP
such/JJ
treatment/NN
for/IN
other/JJ
types/NNS
of/IN
watches/NNS
``/``
because/RB
of/IN
the/DT
potential/NN
for/IN
material/NN
injury/NN
to/TO
watch/VB
producers/NNS
located/VBN
in/IN
the/DT
U.S./NNP
and/CC
the/DT
Virgin/NNP
Islands/NNPS
./.
''/''
Timex/NNP
is/VBZ
a/DT
major/JJ
U.S./NNP
producer/NN
and/CC
seller/NN
of/IN
watches/NNS
,/,
including/VBG
low-priced/JJ
battery-operated/JJ
watches/NNS
assembled/VBN
in/IN
the/DT
Philippines/NNP
and/CC
other/JJ
developing/VBG
nations/NNS
covered/VBN
by/IN
the/DT
U.S./NNP
tariff/NN
preferences/NNS
./.
U.S./NNP
trade/NN
officials/NNS
said/VBD
the/DT
Philippines/NNP
and/CC
Thailand/NNP
would/MD
be/VB
the/DT
main/JJ
beneficiaries/NNS
of/IN
the/DT
president/NN
's/POS
action/NN
./.
Imports/NNS
of/IN
the/DT
types/NNS
of/IN
watches/NNS
that/WDT
now/RB
will/MD
be/VB
eligible/JJ
for/IN
duty-free/JJ
treatment/NN
totaled/VBD
about/IN
$/$
37.3/CD
million/CD
in/IN
1988/CD
,/,
a/DT
relatively/RB
small/JJ
share/NN
of/IN
the/DT
$/$
1.5/CD
billion/CD
in/IN
U.S./NNP
watch/NN
imports/NNS
that/DT
year/NN
,/,
according/VBG
to/TO
an/DT
aide/NN
to/TO
U.S./NNP
Trade/NNP
Representative/NNP
Carla/NNP
Hills/NNP
./.
Magna/NNP
International/NNP
Inc./NNP
's/POS
chief/JJ
financial/JJ
officer/NN
,/,
James/NNP
McAlpine/NNP
,/,
resigned/JJ
and/CC
its/PRP$
chairman/NN
,/,
Frank/NNP
Stronach/NNP
,/,
is/VBZ
stepping/VBG
in/IN
to/TO
help/VB
turn/VB
the/DT
automotive-parts/JJ
manufacturer/NN
around/IN
,/,
the/DT
company/NN
said/VBD
./.
Mr./NNP
Stronach/NNP
will/MD
direct/VB
an/DT
effort/NN
to/TO
reduce/VB
overhead/NN
and/CC
curb/VB
capital/NN
spending/NN
``/``
until/IN
a/DT
more/RBR
satisfactory/JJ
level/NN
of/IN
profit/NN
is/VBZ
achieved/VBN
and/CC
maintained/VBN
,/,
''/''
Magna/NNP
said/VBD
./.
Stephen/NNP
Akerfeldt/NNP
,/,
currently/RB
vice/NN
president/NN
finance/NN
,/,
will/MD
succeed/VB
Mr./NNP
McAlpine/NNP
./.
An/DT
ambitious/JJ
expansion/NN
has/VBZ
left/VBN
Magna/NNP
with/IN
excess/JJ
capacity/NN
and/CC
a/DT
heavy/JJ
debt/NN
load/NN
as/IN
the/DT
automotive/JJ
industry/NN
enters/VBZ
a/DT
downturn/NN
./.
The/DT
company/NN
has/VBZ
reported/VBN
declines/NNS
in/IN
operating/NN
profit/NN
in/IN
each/DT
of/IN
the/DT
past/JJ
three/CD
years/NNS
,/,
despite/IN
steady/JJ
sales/NNS
growth/NN
./.
Magna/NNP
recently/RB
cut/VBD
its/PRP$
quarterly/JJ
dividend/NN
in/IN
half/DT
and/CC
the/DT
company/NN
's/POS
Class/NNP
A/NNP
shares/NNS
are/VBP
wallowing/VBG
far/RB
below/IN
their/PRP$
52-week/JJ
high/NN
of/IN
16.125/CD
Canadian/JJ
dollars/NNS
US$/$
13.73/CD
On/IN
the/DT
Toronto/NNP
Stock/NNP
Exchange/NNP
yesterday/NN
,/,
Magna/NNP
shares/NNS
closed/VBD
up/IN
37.5/CD
Canadian/JJ
cents/NNS
to/TO
C$/$
9.625/CD
./.
Mr./NNP
Stronach/NNP
,/,
founder/NN
and/CC
controlling/VBG
shareholder/NN
of/IN
Magna/NNP
,/,
resigned/VBD
as/IN
chief/NN
executive/NN
officer/NN
last/JJ
year/NN
to/TO
seek/VB
,/,
unsuccessfully/RB
,/,
a/DT
seat/NN
in/IN
Canada/NNP
's/POS
Parliament/NNP
./.
Analysts/NNS
said/VBD
Mr./NNP
Stronach/NNP
wants/VBZ
to/TO
resume/VB
a/DT
more/RBR
influential/JJ
role/NN
in/IN
running/VBG
the/DT
company/NN
./.
They/PRP
expect/VBP
him/PRP
to/TO
cut/VB
costs/NNS
throughout/IN
the/DT
organization/NN
./.
The/DT
company/NN
said/VBD
Mr./NNP
Stronach/NNP
will/MD
personally/RB
direct/VB
the/DT
restructuring/NN
,/,
assisted/VBN
by/IN
Manfred/NNP
Gingl/NNP
,/,
president/NN
and/CC
chief/NN
executive/NN
./.
Neither/DT
they/PRP
nor/CC
Mr./NNP
McAlpine/NNP
could/MD
be/VB
reached/VBN
for/IN
comment/NN
./.
Magna/NNP
said/VBD
Mr./NNP
McAlpine/NNP
resigned/VBD
to/TO
pursue/VB
a/DT
consulting/NN
career/NN
,/,
with/IN
Magna/NNP
as/IN
one/CD
of/IN
his/PRP$
clients/NNS
./.
Lord/NNP
Chilver/NNP
,/,
63-year-old/JJ
chairman/NN
of/IN
English/NNP
China/NNP
Clays/NNP
PLC/NNP
,/,
was/VBD
named/VBN
a/DT
nonexecutive/JJ
director/NN
of/IN
this/DT
British/JJ
chemical/NN
company/NN
./.
Japanese/JJ
investors/NNS
nearly/RB
single-handedly/RB
bought/VBD
up/RP
two/CD
new/JJ
mortgage/NN
securities-based/JJ
mutual/JJ
funds/NNS
totaling/VBG
$/$
701/CD
million/CD
,/,
the/DT
U.S./NNP
Federal/NNP
National/NNP
Mortgage/NNP
Association/NNP
said/VBD
./.
The/DT
purchases/NNS
show/VBP
the/DT
strong/JJ
interest/NN
of/IN
Japanese/JJ
investors/NNS
in/IN
U.S./NNP
mortgage-based/JJ
instruments/NNS
,/,
Fannie/NNP
Mae/NNP
's/POS
chairman/NN
,/,
David/NNP
O./NNP
Maxwell/NNP
,/,
said/VBD
at/IN
a/DT
news/NN
conference/NN
./.
He/PRP
said/VBD
more/RBR
than/IN
90/CD
%/NN
of/IN
the/DT
funds/NNS
were/VBD
placed/VBN
with/IN
Japanese/JJ
institutional/JJ
investors/NNS
./.
The/DT
rest/NN
went/VBD
to/TO
investors/NNS
from/IN
France/NNP
and/CC
Hong/NNP
Kong/NNP
./.
Earlier/JJR
this/DT
year/NN
,/,
Japanese/JJ
investors/NNS
snapped/VBD
up/RP
a/DT
similar/JJ
,/,
$/$
570/CD
million/CD
mortgage-backed/JJ
securities/NNS
mutual/JJ
fund/NN
./.
That/DT
fund/NN
was/VBD
put/VBN
together/RB
by/IN
Blackstone/NNP
Group/NNP
,/,
a/DT
New/NNP
York/NNP
investment/NN
bank/NN
./.
The/DT
latest/JJS
two/CD
funds/NNS
were/VBD
assembled/VBN
jointly/RB
by/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
of/IN
the/DT
U.S./NNP
and/CC
Japan/NNP
's/POS
Daiwa/NNP
Securities/NNPS
Co/NNP
./.
The/DT
new/JJ
,/,
seven-year/JJ
funds/NNS
--/:
one/CD
offering/VBG
a/DT
fixed-rate/JJ
return/NN
and/CC
the/DT
other/JJ
with/IN
a/DT
floating-rate/JJ
return/NN
linked/VBN
to/TO
the/DT
London/NNP
interbank/NN
offered/VBD
rate/NN
--/:
offer/VBP
two/CD
key/JJ
advantages/NNS
to/TO
Japanese/JJ
investors/NNS
./.
First/JJ
,/,
they/PRP
are/VBP
designed/VBN
to/TO
eliminate/VB
the/DT
risk/NN
of/IN
prepayment/NN
--/:
mortgage-backed/JJ
securities/NNS
can/MD
be/VB
retired/VBN
early/RB
if/IN
interest/NN
rates/NNS
decline/VBP
,/,
and/CC
such/JJ
prepayment/NN
forces/VBZ
investors/NNS
to/TO
redeploy/VB
their/PRP$
money/NN
at/IN
lower/JJR
rates/NNS
./.
Second/JJ
,/,
they/PRP
channel/VBP
monthly/JJ
mortgage/NN
payments/NNS
into/IN
semiannual/JJ
payments/NNS
,/,
reducing/VBG
the/DT
administrative/JJ
burden/NN
on/IN
investors/NNS
./.
By/IN
addressing/VBG
those/DT
problems/NNS
,/,
Mr./NNP
Maxwell/NNP
said/VBD
,/,
the/DT
new/JJ
funds/NNS
have/VBP
become/VBN
``/``
extremely/RB
attractive/JJ
to/TO
Japanese/JJ
and/CC
other/JJ
investors/NNS
outside/IN
the/DT
U.S/NNP
./.
''/''
Such/JJ
devices/NNS
have/VBP
boosted/VBN
Japanese/JJ
investment/NN
in/IN
mortgage-backed/JJ
securities/NNS
to/TO
more/RBR
than/IN
1/CD
%/NN
of/IN
the/DT
$/$
900/CD
billion/CD
in/IN
such/JJ
instruments/NNS
outstanding/JJ
,/,
and/CC
their/PRP$
purchases/NNS
are/VBP
growing/VBG
at/IN
a/DT
rapid/JJ
rate/NN
./.
They/PRP
also/RB
have/VBP
become/VBN
large/JJ
purchasers/NNS
of/IN
Fannie/NNP
Mae/NNP
's/POS
corporate/JJ
debt/NN
,/,
buying/VBG
$/$
2.4/CD
billion/CD
in/IN
Fannie/NNP
Mae/NNP
bonds/NNS
during/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
the/DT
year/NN
,/,
or/CC
almost/RB
a/DT
tenth/NN
of/IN
the/DT
total/JJ
amount/NN
issued/VBN
./.
James/NNP
L./NNP
Pate/NNP
,/,
54-year-old/JJ
executive/NN
vice/NN
president/NN
,/,
was/VBD
named/VBN
a/DT
director/NN
of/IN
this/DT
oil/NN
concern/NN
,/,
expanding/VBG
the/DT
board/NN
to/TO
14/CD
members/NNS
./.
LTV/NNP
Corp./NNP
said/VBD
a/DT
federal/JJ
bankruptcy/NN
court/NN
judge/NN
agreed/VBD
to/TO
extend/VB
until/IN
March/NNP
8/CD
,/,
1990/CD
,/,
the/DT
period/NN
in/IN
which/WDT
the/DT
steel/NN
,/,
aerospace/NN
and/CC
energy/NN
products/NNS
company/NN
has/VBZ
the/DT
exclusive/JJ
right/NN
to/TO
file/VB
a/DT
reorganization/NN
plan/NN
./.
The/DT
company/NN
is/VBZ
operating/VBG
under/IN
Chapter/NN
11/CD
of/IN
the/DT
federal/JJ
Bankruptcy/NNP
Code/NNP
,/,
giving/VBG
it/PRP
court/NN
protection/NN
from/IN
creditors/NNS
'/POS
lawsuits/NNS
while/IN
it/PRP
attempts/VBZ
to/TO
work/VB
out/RP
a/DT
plan/NN
to/TO
pay/VB
its/PRP$
debts/NNS
./.
Italian/JJ
chemical/NN
giant/NN
Montedison/NNP
S.p.A./NNP
,/,
through/IN
its/PRP$
Montedison/NNP
Acquisition/NNP
N.V./NNP
indirect/JJ
unit/NN
,/,
began/VBD
its/PRP$
$/$
37-a-share/JJ
tender/NN
offer/NN
for/IN
all/DT
the/DT
common/JJ
shares/NNS
outstanding/JJ
of/IN
Erbamont/NNP
N.V./NNP
,/,
a/DT
maker/NN
of/IN
pharmaceuticals/NNS
incorporated/VBN
in/IN
the/DT
Netherlands/NNPS
./.
The/DT
offer/NN
,/,
advertised/VBN
in/IN
today/NN
's/POS
editions/NNS
of/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
,/,
is/VBZ
scheduled/VBN
to/TO
expire/VB
at/IN
the/DT
end/NN
of/IN
November/NNP
./.
Montedison/NN
currently/RB
owns/VBZ
about/IN
72/CD
%/NN
of/IN
Erbamont/NN
's/POS
common/JJ
shares/NNS
outstanding/JJ
./.
The/DT
offer/NN
is/VBZ
being/VBG
launched/VBN
pursuant/JJ
to/TO
a/DT
previously/RB
announced/VBN
agreement/NN
between/IN
the/DT
companies/NNS
./.
Japan/NNP
's/POS
reserves/NNS
of/IN
gold/NN
,/,
convertible/JJ
foreign/JJ
currencies/NNS
,/,
and/CC
special/JJ
drawing/NN
rights/NNS
fell/VBD
by/IN
a/DT
hefty/JJ
$/$
1.82/CD
billion/CD
in/IN
October/NNP
to/TO
$/$
84.29/CD
billion/CD
,/,
the/DT
Finance/NNP
Ministry/NNP
said/VBD
./.
The/DT
total/NN
marks/VBZ
the/DT
sixth/JJ
consecutive/JJ
monthly/JJ
decline/NN
./.
The/DT
protracted/JJ
downturn/NN
reflects/VBZ
the/DT
intensity/NN
of/IN
Bank/NNP
of/IN
Japan/NNP
yen-support/JJ
intervention/NN
since/IN
June/NNP
,/,
when/WRB
the/DT
U.S./NNP
currency/NN
temporarily/RB
surged/VBD
above/IN
the/DT
150.00/CD
yen/NNS
level/NN
./.
The/DT
announcement/NN
follows/VBZ
a/DT
sharper/JJR
$/$
2.2/CD
billion/CD
decline/NN
in/IN
the/DT
country/NN
's/POS
foreign/JJ
reserves/NNS
in/IN
September/NNP
to/TO
$/$
86.12/CD
billion/CD
./.
Pick/VB
a/DT
country/NN
,/,
any/DT
country/NN
./.
It/PRP
's/VBZ
the/DT
latest/JJS
investment/NN
craze/NN
sweeping/VBG
Wall/NNP
Street/NNP
:/:
a/DT
rash/NN
of/IN
new/JJ
closed-end/JJ
country/NN
funds/NNS
,/,
those/DT
publicly/RB
traded/VBN
portfolios/NNS
that/WDT
invest/VBP
in/IN
stocks/NNS
of/IN
a/DT
single/JJ
foreign/JJ
country/NN
./.
No/RB
fewer/JJR
than/IN
24/CD
country/NN
funds/NNS
have/VBP
been/VBN
launched/VBN
or/CC
registered/VBN
with/IN
regulators/NNS
this/DT
year/NN
,/,
triple/RB
the/DT
level/NN
of/IN
all/DT
of/IN
1988/CD
,/,
according/VBG
to/TO
Charles/NNP
E./NNP
Simon/NNP
&/CC
Co./NNP
,/,
a/DT
Washington-based/JJ
research/NN
firm/NN
./.
The/DT
turf/NN
recently/RB
has/VBZ
ranged/VBN
from/IN
Chile/NNP
to/TO
Austria/NNP
to/TO
Portugal/NNP
./.
Next/JJ
week/NN
,/,
the/DT
Philippine/NNP
Fund/NNP
's/POS
launch/NN
will/MD
be/VB
capped/VBN
by/IN
a/DT
visit/NN
by/IN
Philippine/JJ
President/NNP
Corazon/NNP
Aquino/NNP
--/:
the/NNP
first/JJ
time/NN
a/DT
head/NN
of/IN
state/NN
has/VBZ
kicked/VBN
off/RP
an/DT
issue/NN
at/IN
the/DT
Big/NNP
Board/NNP
here/RB
./.
The/DT
next/JJ
province/NN
?/.
``/``
Anything/NN
's/VBZ
possible/JJ
--/:
how/WRB
about/RP
the/DT
New/NNP
Guinea/NNP
Fund/NNP
?/.
''/''
quips/VBZ
George/NNP
Foot/NNP
,/,
a/DT
managing/VBG
partner/NN
at/IN
Newgate/NNP
Management/NNP
Associates/NNP
of/IN
Northampton/NNP
,/,
Mass/NNP
./.
The/DT
recent/JJ
explosion/NN
of/IN
country/NN
funds/NNS
mirrors/VBZ
the/DT
``/``
closed-end/JJ
fund/NN
mania/NN
''/''
of/IN
the/DT
1920s/NNS
,/,
Mr./NNP
Foot/NNP
says/VBZ
,/,
when/WRB
narrowly/RB
focused/VBN
funds/NNS
grew/VBD
wildly/RB
popular/JJ
./.
They/PRP
fell/VBD
into/IN
oblivion/NN
after/IN
the/DT
1929/CD
crash/NN
./.
Unlike/IN
traditional/JJ
open-end/JJ
mutual/JJ
funds/NNS
,/,
most/RBS
of/IN
these/DT
one-country/JJ
portfolios/NNS
are/VBP
the/DT
``/``
closed-end/JJ
''/''
type/NN
,/,
issuing/VBG
a/DT
fixed/VBN
number/NN
of/IN
shares/NNS
that/WDT
trade/VBP
publicly/RB
./.
The/DT
surge/NN
brings/VBZ
to/TO
nearly/RB
50/CD
the/DT
number/NN
of/IN
country/NN
funds/NNS
that/WDT
are/VBP
or/CC
soon/RB
will/MD
be/VB
listed/VBN
in/IN
New/NNP
York/NNP
or/CC
London/NNP
./.
These/DT
funds/NNS
now/RB
account/VBP
for/IN
several/JJ
billions/NNS
of/IN
dollars/NNS
in/IN
assets/NNS
./.
``/``
People/NNS
are/VBP
looking/VBG
to/TO
stake/VB
their/PRP$
claims/NNS
''/''
now/RB
before/RB
the/DT
number/NN
of/IN
available/JJ
nations/NNS
runs/VBZ
out/RP
,/,
says/VBZ
Michael/NNP
Porter/NNP
,/,
an/DT
analyst/NN
at/IN
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
&/CC
Co./NNP
,/,
New/NNP
York/NNP
./.
Behind/IN
all/DT
the/DT
hoopla/NN
is/VBZ
some/DT
heavy-duty/JJ
competition/NN
./.
As/IN
individual/JJ
investors/NNS
have/VBP
turned/VBN
away/RB
from/IN
the/DT
stock/NN
market/NN
over/IN
the/DT
years/NNS
,/,
securities/NNS
firms/NNS
have/VBP
scrambled/VBN
to/TO
find/VB
new/JJ
products/NNS
that/WDT
brokers/NNS
find/VBP
easy/JJ
to/TO
sell/VB
./.
And/CC
the/DT
firms/NNS
are/VBP
stretching/VBG
their/PRP$
nets/NNS
far/RB
and/CC
wide/RB
to/TO
do/VB
it/PRP
./.
Financial/JJ
planners/NNS
often/RB
urge/VBP
investors/NNS
to/TO
diversify/VB
and/CC
to/TO
hold/VB
a/DT
smattering/NN
of/IN
international/JJ
securities/NNS
./.
And/CC
many/JJ
emerging/VBG
markets/NNS
have/VBP
outpaced/VBN
more/RBR
mature/JJ
markets/NNS
,/,
such/JJ
as/IN
the/DT
U.S./NNP
and/CC
Japan/NNP
./.
Country/NN
funds/NNS
offer/VBP
an/DT
easy/JJ
way/NN
to/TO
get/VB
a/DT
taste/NN
of/IN
foreign/JJ
stocks/NNS
without/IN
the/DT
hard/JJ
research/NN
of/IN
seeking/VBG
out/RP
individual/JJ
companies/NNS
./.
But/CC
it/PRP
does/VBZ
n't/RB
take/VB
much/JJ
to/TO
get/VB
burned/VBN
./.
Political/JJ
and/CC
currency/NN
gyrations/NNS
can/MD
whipsaw/VB
the/DT
funds/NNS
./.
Another/DT
concern/NN
:/:
The/DT
funds/NNS
'/POS
share/NN
prices/NNS
tend/VBP
to/TO
swing/VB
more/RBR
than/IN
the/DT
broader/JJR
market/NN
./.
When/WRB
the/DT
stock/NN
market/NN
dropped/VBD
nearly/RB
7/CD
%/NN
Oct./NNP
13/CD
,/,
for/IN
instance/NN
,/,
the/DT
Mexico/NNP
Fund/NNP
plunged/VBD
about/RB
18/CD
%/NN
and/CC
the/DT
Spain/NNP
Fund/NNP
fell/VBD
16/CD
%/NN
./.
And/CC
most/JJS
country/NN
funds/NNS
were/VBD
clobbered/VBN
more/RBR
than/IN
most/JJS
stocks/NNS
after/IN
the/DT
1987/CD
crash/NN
./.
What/WP
's/VBZ
so/RB
wild/JJ
about/IN
the/DT
funds/NNS
'/POS
frenzy/NN
right/RB
now/RB
is/VBZ
that/IN
many/JJ
are/VBP
trading/VBG
at/IN
historically/RB
fat/JJ
premiums/NNS
to/TO
the/DT
value/NN
of/IN
their/PRP$
underlying/JJ
portfolios/NNS
./.
After/IN
trading/VBG
at/IN
an/DT
average/JJ
discount/NN
of/IN
more/JJR
than/IN
20/CD
%/NN
in/IN
late/JJ
1987/CD
and/CC
part/NN
of/IN
last/JJ
year/NN
,/,
country/NN
funds/NNS
currently/RB
trade/VBP
at/IN
an/DT
average/JJ
premium/NN
of/IN
6/CD
%/NN
./.
The/DT
reason/NN
:/:
Share/NN
prices/NNS
of/IN
many/JJ
of/IN
these/DT
funds/NNS
this/DT
year/NN
have/VBP
climbed/VBN
much/RB
more/RBR
sharply/RB
than/IN
the/DT
foreign/JJ
stocks/NNS
they/PRP
hold/VBP
./.
It/PRP
's/VBZ
probably/RB
worth/IN
paying/VBG
a/DT
premium/NN
for/IN
funds/NNS
that/WDT
invest/VBP
in/IN
markets/NNS
that/WDT
are/VBP
partially/RB
closed/VBN
to/TO
foreign/JJ
investors/NNS
,/,
such/JJ
as/IN
South/NNP
Korea/NNP
,/,
some/DT
specialists/NNS
say/VBP
./.
But/CC
some/DT
European/JJ
funds/NNS
recently/RB
have/VBP
skyrocketed/VBN
;/:
Spain/NNP
Fund/NNP
has/VBZ
surged/VBN
to/TO
a/DT
startling/JJ
120/CD
%/NN
premium/NN
./.
It/PRP
has/VBZ
been/VBN
targeted/VBN
by/IN
Japanese/JJ
investors/NNS
as/IN
a/DT
good/JJ
long-term/JJ
play/NN
tied/VBN
to/TO
1992/CD
's/POS
European/JJ
economic/JJ
integration/NN
./.
And/CC
several/JJ
new/JJ
funds/NNS
that/WDT
are/VBP
n't/RB
even/RB
fully/RB
invested/VBN
yet/RB
have/VBP
jumped/VBN
to/TO
trade/VB
at/IN
big/JJ
premiums/NNS
./.
``/``
I/PRP
'm/VBP
very/RB
alarmed/VBN
to/TO
see/VB
these/DT
rich/JJ
valuations/NNS
,/,
''/''
says/VBZ
Smith/NNP
Barney/NNP
's/POS
Mr./NNP
Porter/NNP
./.
The/DT
newly/RB
fattened/VBN
premiums/NNS
reflect/VBP
the/DT
increasingly/RB
global/JJ
marketing/NN
of/IN
some/DT
country/NN
funds/NNS
,/,
Mr./NNP
Porter/NNP
suggests/VBZ
./.
Unlike/IN
many/JJ
U.S./NNP
investors/NNS
,/,
those/DT
in/IN
Asia/NNP
or/CC
Europe/NNP
seeking/VBG
foreign-stock/JJ
exposure/NN
may/MD
be/VB
less/RBR
resistant/JJ
to/TO
paying/VBG
higher/JJR
prices/NNS
for/IN
country/NN
funds/NNS
./.
``/``
There/EX
may/MD
be/VB
an/DT
international/JJ
viewpoint/NN
cast/VBN
on/IN
the/DT
funds/NNS
listed/VBN
here/RB
,/,
''/''
Mr./NNP
Porter/NNP
says/VBZ
./.
Nonetheless/RB
,/,
plenty/JJ
of/IN
U.S./NNP
analysts/NNS
and/CC
money/NN
managers/NNS
are/VBP
aghast/JJ
at/IN
the/DT
lofty/JJ
trading/NN
levels/NNS
of/IN
some/DT
country/NN
funds/NNS
./.
They/PRP
argue/VBP
that/IN
U.S./NNP
investors/NNS
often/RB
can/MD
buy/VB
American/JJ
depositary/JJ
receipts/NNS
on/IN
the/DT
big/JJ
stocks/NNS
in/IN
many/JJ
funds/NNS
;/:
these/DT
so-called/JJ
ADRs/NNPS
represent/VBP
shares/NNS
of/IN
foreign/JJ
companies/NNS
traded/VBN
in/IN
the/DT
U.S/NNP
./.
That/DT
way/NN
investors/NNS
can/MD
essentially/RB
buy/VB
the/DT
funds/NNS
without/IN
paying/VBG
the/DT
premium/NN
./.
For/IN
people/NNS
who/WP
insist/VBP
on/RP
jumping/VBG
in/RB
now/RB
to/TO
buy/VB
the/DT
funds/NNS
,/,
Newgate/NNP
's/POS
Mr./NNP
Foot/NNP
says/VBZ
:/:
``/``
The/DT
only/JJ
advice/NN
I/PRP
have/VBP
for/IN
these/DT
folks/NNS
is/VBZ
that/IN
those/DT
who/WP
come/VBP
to/TO
the/DT
party/NN
late/RB
had/VBD
better/RBR
be/VB
ready/JJ
to/TO
leave/VB
quickly/RB
./.
''/''
The/DT
U.S./NNP
and/CC
Soviet/NNP
Union/NNP
are/VBP
holding/VBG
technical/JJ
talks/NNS
about/IN
possible/JJ
repayment/NN
by/IN
Moscow/NNP
of/IN
$/$
188/CD
million/CD
in/IN
pre-Communist/JJ
Russian/JJ
debts/NNS
owed/VBD
to/TO
the/DT
U.S./NNP
government/NN
,/,
the/DT
State/NNP
Department/NNP
said/VBD
./.
If/IN
the/DT
debts/NNS
are/VBP
repaid/VBN
,/,
it/PRP
could/MD
clear/VB
the/DT
way/NN
for/IN
Soviet/JJ
bonds/NNS
to/TO
be/VB
sold/VBN
in/IN
the/DT
U.S/NNP
./.
However/RB
,/,
after/IN
two/CD
meetings/NNS
with/IN
the/DT
Soviets/NNS
,/,
a/DT
State/NNP
Department/NNP
spokesman/NN
said/VBD
that/IN
it/PRP
's/VBZ
``/``
too/RB
early/RB
to/TO
say/VB
''/''
whether/IN
that/DT
will/MD
happen/VB
./.
Coincident/JJ
with/IN
the/DT
talks/NNS
,/,
the/DT
State/NNP
Department/NNP
said/VBD
it/PRP
has/VBZ
permitted/VBN
a/DT
Soviet/JJ
bank/NN
to/TO
open/VB
a/DT
New/NNP
York/NNP
branch/NN
./.
The/DT
branch/NN
of/IN
the/DT
Bank/NNP
for/IN
Foreign/NNP
Economic/NNP
Affairs/NNP
was/VBD
approved/VBN
last/JJ
spring/NN
and/CC
opened/VBD
in/IN
July/NNP
./.
But/CC
a/DT
Soviet/JJ
bank/NN
here/RB
would/MD
be/VB
crippled/VBN
unless/IN
Moscow/NNP
found/VBD
a/DT
way/NN
to/TO
settle/VB
the/DT
$/$
188/CD
million/CD
debt/NN
,/,
which/WDT
was/VBD
lent/VBN
to/TO
the/DT
country/NN
's/POS
short-lived/JJ
democratic/JJ
Kerensky/NNP
government/NN
before/IN
the/DT
Communists/NNS
seized/VBD
power/NN
in/IN
1917/CD
./.
Under/IN
a/DT
1934/CD
law/NN
,/,
the/DT
Johnson/NNP
Debt/NNP
Default/NNP
Act/NNP
,/,
as/RB
amended/VBN
,/,
it/PRP
's/VBZ
illegal/JJ
for/IN
Americans/NNS
to/TO
extend/VB
credit/NN
to/TO
countries/NNS
in/IN
default/NN
to/TO
the/DT
U.S./NNP
government/NN
,/,
unless/IN
they/PRP
are/VBP
members/NNS
of/IN
the/DT
World/NNP
Bank/NNP
and/CC
International/NNP
Monetary/NNP
Fund/NNP
./.
The/DT
U.S.S.R./NNP
belongs/VBZ
to/TO
neither/DT
organization/NN
./.
Moscow/NNP
has/VBZ
settled/VBN
pre-1917/JJ
debts/NNS
with/IN
other/JJ
countries/NNS
in/IN
recent/JJ
years/NNS
at/IN
less/JJR
than/IN
face/NN
value/NN
./.
The/DT
State/NNP
Department/NNP
stressed/VBD
the/DT
pre-1933/JJ
debts/NNS
as/IN
the/DT
key/NN
to/TO
satisfying/VBG
the/DT
Johnson/NNP
Act/NNP
./.
But/CC
the/DT
Soviets/NNS
might/MD
still/RB
face/VB
legal/JJ
obstacles/NNS
to/TO
raising/VBG
money/NN
in/IN
the/DT
U.S./NNP
until/IN
they/PRP
settle/VBP
hundreds/NNS
of/IN
millions/NNS
of/IN
dollars/NNS
in/IN
additional/JJ
debt/NN
still/RB
outstanding/JJ
from/IN
the/DT
World/NNP
War/NNP
II/NNP
lend-lease/JJ
program/NN
./.
In/IN
another/DT
reflection/NN
that/IN
the/DT
growth/NN
of/IN
the/DT
economy/NN
is/VBZ
leveling/VBG
off/RP
,/,
the/DT
government/NN
said/VBD
that/IN
orders/NNS
for/IN
manufactured/VBN
goods/NNS
and/CC
spending/NN
on/IN
construction/NN
failed/VBD
to/TO
rise/VB
in/IN
September/NNP
./.
Meanwhile/RB
,/,
the/DT
National/NNP
Association/NNP
of/IN
Purchasing/NNP
Management/NNP
said/VBD
its/PRP$
latest/JJS
survey/NN
indicated/VBD
that/IN
the/DT
manufacturing/NN
economy/NN
contracted/VBD
in/IN
October/NNP
for/IN
the/DT
sixth/JJ
consecutive/JJ
month/NN
./.
Its/PRP$
index/NN
inched/VBD
up/RB
to/TO
47.6/CD
%/NN
in/IN
October/NNP
from/IN
46/CD
%/NN
in/IN
September/NNP
./.
Any/DT
reading/NN
below/IN
50/CD
%/NN
suggests/VBZ
the/DT
manufacturing/NN
sector/NN
is/VBZ
generally/RB
declining/VBG
./.
The/DT
purchasing/VBG
managers/NNS
,/,
however/RB
,/,
also/RB
said/VBD
that/IN
orders/NNS
turned/VBD
up/RB
in/IN
October/NNP
after/IN
four/CD
months/NNS
of/IN
decline/NN
./.
Factories/NNS
booked/VBD
$/$
236.74/CD
billion/CD
in/IN
orders/NNS
in/IN
September/NNP
,/,
nearly/RB
the/DT
same/JJ
as/IN
the/DT
$/$
236.79/CD
billion/CD
in/IN
August/NNP
,/,
the/DT
Commerce/NNP
Department/NNP
said/VBD
./.
If/IN
not/RB
for/IN
a/DT
59.6/CD
%/NN
surge/NN
in/IN
orders/NNS
for/IN
capital/NN
goods/NNS
by/IN
defense/NN
contractors/NNS
,/,
factory/NN
orders/NNS
would/MD
have/VB
fallen/VBN
2.1/CD
%/NN
./.
In/IN
a/DT
separate/JJ
report/NN
,/,
the/DT
department/NN
said/VBD
construction/NN
spending/NN
ran/VBD
at/IN
an/DT
annual/JJ
rate/NN
of/IN
$/$
415.6/CD
billion/CD
,/,
not/RB
significantly/RB
different/JJ
from/IN
the/DT
$/$
415.8/CD
billion/CD
reported/VBN
for/IN
August/NNP
./.
Private/JJ
construction/NN
spending/NN
was/VBD
down/RB
,/,
but/CC
government/NN
building/NN
activity/NN
was/VBD
up/RB
./.
The/DT
figures/NNS
in/IN
both/DT
reports/NNS
were/VBD
adjusted/VBN
to/TO
remove/VB
the/DT
effects/NNS
of/IN
usual/JJ
seasonal/JJ
patterns/NNS
,/,
but/CC
were/VBD
n't/RB
adjusted/VBN
for/IN
inflation/NN
./.
Kenneth/NNP
Mayland/NNP
,/,
economist/NN
for/IN
Society/NNP
Corp./NNP
,/,
a/DT
Cleveland/NNP
bank/NN
,/,
said/VBD
demand/NN
for/IN
exports/NNS
of/IN
factory/NN
goods/NNS
is/VBZ
beginning/VBG
to/TO
taper/VB
off/RP
./.
At/IN
the/DT
same/JJ
time/NN
,/,
the/DT
drop/NN
in/IN
interest/NN
rates/NNS
since/IN
the/DT
spring/NN
has/VBZ
failed/VBN
to/TO
revive/VB
the/DT
residential/JJ
construction/NN
industry/NN
./.
``/``
What/WP
sector/NN
is/VBZ
stepping/VBG
forward/RB
to/TO
pick/VB
up/RP
the/DT
slack/NN
?/.
''/''
he/PRP
asked/VBD
./.
``/``
I/PRP
draw/VBP
a/DT
blank/NN
./.
''/''
By/IN
most/JJS
measures/NNS
,/,
the/DT
nation/NN
's/POS
industrial/JJ
sector/NN
is/VBZ
now/RB
growing/VBG
very/RB
slowly/RB
--/:
if/IN
at/IN
all/DT
./.
Factory/NN
payrolls/NNS
fell/VBD
in/IN
September/NNP
./.
So/RB
did/VBD
the/DT
Federal/NNP
Reserve/NNP
Board/NNP
's/POS
industrial-production/JJ
index/NN
./.
Yet/CC
many/JJ
economists/NNS
are/VBP
n't/RB
predicting/VBG
that/IN
the/DT
economy/NN
is/VBZ
about/IN
to/TO
slip/VB
into/IN
recession/NN
./.
They/PRP
cite/VBP
a/DT
lack/NN
of/IN
``/``
imbalances/NNS
''/''
that/WDT
provide/VBP
early/JJ
warning/NN
signals/NNS
of/IN
a/DT
downturn/NN
./.
Inventories/NNS
are/VBP
closely/RB
watched/VBN
for/IN
such/JJ
clues/NNS
,/,
for/IN
instance/NN
./.
Economists/NNS
say/VBP
a/DT
buildup/NN
in/IN
inventories/NNS
can/MD
provoke/VB
cutbacks/NNS
in/IN
production/NN
that/WDT
can/MD
lead/VB
to/TO
a/DT
recession/NN
./.
But/CC
yesterday/NN
's/POS
factory/NN
orders/NNS
report/NN
had/VBD
good/JJ
news/NN
on/IN
that/DT
front/NN
:/:
it/PRP
said/VBD
factory/NN
inventories/NNS
fell/VBD
0.1/CD
%/NN
in/IN
September/NNP
,/,
the/DT
first/JJ
decline/NN
since/IN
February/NNP
1987/CD
./.
``/``
This/DT
conforms/VBZ
to/TO
the/DT
`/``
soft/JJ
landing/NN
'/''
scenario/NN
,/,
''/''
said/VBD
Elliott/NNP
Platt/NNP
,/,
an/DT
economist/NN
at/IN
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
Securities/NNP
Corp/NNP
./.
``/``
I/PRP
do/VBP
n't/RB
see/VB
any/DT
signs/NNS
that/IN
inventories/NNS
are/VBP
excessive/JJ
./.
''/''
A/DT
soft/JJ
landing/NN
is/VBZ
an/DT
economic/JJ
slowdown/NN
that/WDT
eases/VBZ
inflation/NN
without/IN
leading/VBG
to/TO
a/DT
recession/NN
./.
The/DT
department/NN
said/VBD
orders/NNS
for/IN
nondurable/JJ
goods/NNS
--/:
those/DT
intended/VBN
to/TO
last/VB
fewer/JJR
than/IN
three/CD
years/NNS
--/:
fell/VBD
0.3/CD
%/NN
in/IN
September/NNP
to/TO
$/$
109.73/CD
billion/CD
after/RB
climbing/VBG
0.9/CD
%/NN
the/DT
month/NN
before/RB
./.
Orders/NNS
for/IN
durable/JJ
goods/NNS
were/VBD
up/RB
0.2/CD
%/NN
to/TO
$/$
127.03/CD
billion/CD
after/IN
rising/VBG
3.9/CD
%/NN
the/DT
month/NN
before/RB
./.
The/DT
department/NN
previously/RB
estimated/VBD
that/IN
durable-goods/NNS
orders/NNS
fell/VBD
0.1/CD
%/NN
in/IN
September/NNP
./.
Factory/NN
shipments/NNS
fell/VBD
1.6/CD
%/NN
to/TO
$/$
234.4/CD
billion/CD
after/IN
rising/VBG
5.4/CD
%/NN
in/IN
August/NNP
./.
Shipments/NNS
have/VBP
been/VBN
relatively/RB
level/JJ
since/IN
January/NNP
,/,
the/DT
Commerce/NNP
Department/NNP
noted/VBD
./.
Manufacturers/NNS
'/POS
backlogs/NNS
of/IN
unfilled/JJ
orders/NNS
rose/VBD
0.5/CD
%/NN
in/IN
September/NNP
to/TO
$/$
497.34/CD
billion/CD
,/,
helped/VBN
by/IN
strength/NN
in/IN
the/DT
defense/NN
capital/NN
goods/NNS
sector/NN
./.
Excluding/VBG
these/DT
orders/NNS
,/,
backlogs/NNS
declined/VBD
0.3/CD
%/NN
./.
In/IN
its/PRP$
construction/NN
spending/NN
report/NN
,/,
the/DT
Commerce/NNP
Department/NNP
said/VBD
residential/JJ
construction/NN
,/,
which/WDT
accounts/VBZ
for/IN
nearly/RB
half/NN
of/IN
all/DT
construction/NN
spending/NN
,/,
was/VBD
off/JJ
0.9/CD
%/NN
in/IN
September/NNP
to/TO
an/DT
annual/JJ
rate/NN
of/IN
$/$
191.9/CD
billion/CD
./.
David/NNP
Berson/NNP
,/,
economist/NN
for/IN
the/DT
Mortgage/NNP
Bankers/NNP
Association/NNP
,/,
predicted/VBD
the/DT
drop/NN
in/IN
interest/NN
rates/NNS
eventually/RB
will/MD
boost/VB
spending/NN
on/IN
single-family/JJ
homes/NNS
,/,
but/CC
probably/RB
not/RB
until/IN
early/JJ
next/JJ
year/NN
./.
Spending/NN
on/IN
private/JJ
,/,
nonresidential/JJ
construction/NN
was/VBD
off/JJ
2.6/CD
%/NN
to/TO
an/DT
annual/JJ
rate/NN
of/IN
$/$
99.1/CD
billion/CD
with/IN
no/DT
sector/NN
showing/VBG
strength/NN
./.
Government/NNP
construction/NN
spending/NN
rose/VBD
4.3/CD
%/NN
to/TO
$/$
88/CD
billion/CD
./.
After/RB
adjusting/VBG
for/IN
inflation/NN
,/,
the/DT
Commerce/NNP
Department/NNP
said/VBD
construction/NN
spending/NN
did/VBD
n't/RB
change/VB
in/IN
September/NNP
./.
For/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
the/DT
year/NN
,/,
total/JJ
construction/NN
spending/NN
ran/VBD
about/RB
2/CD
%/NN
above/IN
last/JJ
year/NN
's/POS
level/NN
./.
The/DT
government/NN
's/POS
construction/NN
spending/NN
figures/NNS
contrast/VBP
with/IN
a/DT
report/NN
issued/VBD
earlier/RBR
in/IN
the/DT
week/NN
by/IN
McGraw-Hill/NNP
Inc./NNP
's/POS
F.W./NNP
Dodge/NNP
Group/NNP
./.
Dodge/NNP
reported/VBD
an/DT
8/CD
%/NN
increase/NN
in/IN
construction/NN
contracts/NNS
awarded/VBN
in/IN
September/NNP
./.
The/DT
goverment/NN
counts/VBZ
money/NN
as/IN
it/PRP
is/VBZ
spent/VBN
;/:
Dodge/NNP
counts/VBZ
contracts/NNS
when/WRB
they/PRP
are/VBP
awarded/VBN
./.
The/DT
government/NN
includes/VBZ
money/NN
spent/VBN
on/IN
residential/JJ
renovation/NN
;/:
Dodge/NNP
does/VBZ
n't/RB
./.
Although/IN
the/DT
purchasing/NN
managers/NNS
'/POS
index/NN
continues/VBZ
to/TO
indicate/VB
a/DT
slowing/VBG
economy/NN
,/,
it/PRP
is/VBZ
n't/RB
signaling/VBG
an/DT
imminent/JJ
recession/NN
,/,
said/VBD
Robert/NNP
Bretz/NNP
,/,
chairman/NN
of/IN
the/DT
association/NN
's/POS
survey/NN
committee/NN
and/CC
director/NN
of/IN
materials/NNS
management/NN
at/IN
Pitney/NNP
Bowes/NNP
Inc./NNP
,/,
Stamford/NNP
,/,
Conn/NNP
./.
He/PRP
said/VBD
the/DT
index/NN
would/MD
have/VB
to/TO
be/VB
in/IN
the/DT
low/JJ
40/CD
%/NN
range/NN
for/IN
several/JJ
months/NNS
to/TO
be/VB
considered/VBN
a/DT
forecast/NN
of/IN
recession/NN
./.
The/DT
report/NN
offered/VBD
new/JJ
evidence/NN
that/IN
the/DT
nation/NN
's/POS
export/NN
growth/NN
,/,
though/IN
still/RB
continuing/VBG
,/,
may/MD
be/VB
slowing/VBG
./.
Only/RB
19/CD
%/NN
of/IN
the/DT
purchasing/VBG
managers/NNS
reported/VBD
better/JJR
export/NN
orders/NNS
in/IN
October/NNP
,/,
down/RB
from/IN
27/CD
%/NN
in/IN
September/NNP
./.
And/CC
8/CD
%/NN
said/VBD
export/NN
orders/NNS
were/VBD
down/RB
last/JJ
month/NN
,/,
compared/VBN
with/IN
6/CD
%/NN
the/DT
month/NN
before/RB
./.
The/DT
purhasing/NN
managers/NNS
'/POS
report/NN
also/RB
added/VBD
evidence/NN
that/IN
inflation/NN
is/VBZ
under/IN
control/NN
./.
For/IN
the/DT
fifth/JJ
consecutive/JJ
month/NN
,/,
purchasing/VBG
managers/NNS
said/VBD
prices/NNS
for/IN
the/DT
goods/NNS
they/PRP
purchased/VBD
fell/VBD
./.
The/DT
decline/NN
was/VBD
even/RB
steeper/JJR
than/IN
in/IN
September/NNP
./.
They/PRP
also/RB
said/VBD
that/IN
vendors/NNS
were/VBD
delivering/VBG
goods/NNS
more/RBR
quickly/RB
in/IN
October/NNP
than/IN
they/PRP
had/VBD
for/IN
each/DT
of/IN
the/DT
five/CD
previous/JJ
months/NNS
./.
Economists/NNS
consider/VBP
that/DT
a/DT
sign/NN
that/IN
inflationary/JJ
pressures/NNS
are/VBP
abating/VBG
./.
When/WRB
demand/NN
is/VBZ
stronger/JJR
than/IN
suppliers/NNS
can/MD
handle/VB
and/CC
delivery/NN
times/NNS
lengthen/VBP
,/,
prices/NNS
tend/VBP
to/TO
rise/VB
./.
The/DT
purchasing/NN
managers/NNS
'/POS
report/NN
is/VBZ
based/VBN
on/IN
data/NNS
provided/VBN
by/IN
more/RBR
than/IN
250/CD
purchasing/NN
executives/NNS
./.
Each/DT
of/IN
the/DT
survey/NN
's/POS
indicators/NNS
gauges/VBZ
the/DT
difference/NN
between/IN
the/DT
number/NN
of/IN
purchasers/NNS
reporting/VBG
improvement/NN
in/IN
a/DT
particular/JJ
area/NN
and/CC
the/DT
number/NN
reporting/VBG
a/DT
worsening/NN
./.
For/IN
the/DT
first/JJ
time/NN
,/,
the/DT
October/NNP
survey/NN
polled/VBD
members/NNS
on/IN
imports/NNS
./.
It/PRP
found/VBD
that/IN
of/IN
the/DT
73/CD
%/NN
who/WP
import/VBP
,/,
10/CD
%/NN
said/VBD
they/PRP
imported/VBD
more/RBR
in/IN
October/NNP
and/CC
12/CD
%/NN
said/VBD
they/PRP
imported/VBD
less/JJR
than/IN
the/DT
previous/JJ
month/NN
./.
While/IN
acknowledging/VBG
one/CD
month/NN
's/POS
figures/NNS
do/VBP
n't/RB
prove/VB
a/DT
trend/NN
,/,
Mr./NNP
Bretz/NNP
said/VBD
,/,
``/``
It/PRP
does/VBZ
lead/VB
you/PRP
to/TO
suspect/VB
imports/NNS
are/VBP
going/VBG
down/RB
,/,
or/CC
at/IN
least/JJS
not/RB
increasing/VBG
that/RB
much/RB
./.
''/''
Items/NNS
listed/VBN
as/IN
being/VBG
in/IN
short/JJ
supply/NN
numbered/VBD
only/RB
about/RB
a/DT
dozen/NN
,/,
but/CC
they/PRP
included/VBD
one/CD
newcomer/NN
:/:
milk/NN
and/CC
milk/NN
powder/NN
./.
``/``
It/PRP
's/VBZ
an/DT
odd/JJ
thing/NN
to/TO
put/VB
on/IN
the/DT
list/NN
,/,
''/''
Mr./NNP
Bretz/NNP
noted/VBD
./.
He/PRP
said/VBD
that/IN
for/IN
the/DT
second/JJ
month/NN
in/IN
a/DT
row/NN
,/,
food/NN
processors/NNS
reported/VBD
a/DT
shortage/NN
of/IN
nonfat/JJ
dry/JJ
milk/NN
./.
They/PRP
blamed/VBD
increased/VBN
demand/NN
for/IN
dairy/NN
products/NNS
at/IN
a/DT
time/NN
of/IN
exceptionally/RB
high/JJ
U.S./NNP
exports/NNS
of/IN
dry/JJ
milk/NN
,/,
coupled/VBN
with/IN
very/RB
low/JJ
import/NN
quotas/NNS
./.
Pamela/NNP
Sebastian/NNP
in/IN
New/NNP
York/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Here/RB
are/VBP
the/DT
Commerce/NNP
Department/NNP
's/POS
figures/NNS
for/IN
construction/NN
spending/NN
in/IN
billions/NNS
of/IN
dollars/NNS
at/IN
seasonally/RB
adjusted/VBN
annual/JJ
rates/NNS
./.
Here/RB
are/VBP
the/DT
Commerce/NNP
Department/NNP
's/POS
latest/JJS
figures/NNS
for/IN
manufacturers/NNS
in/IN
billions/NNS
of/IN
dollars/NNS
,/,
seasonally/RB
adjusted/VBN
./.
Judging/VBG
from/IN
the/DT
Americana/NNS
in/IN
Haruki/NNP
Murakami/NNP
's/POS
``/``
A/DT
Wild/NNP
Sheep/NNP
Chase/NNP
''/''
(/(
Kodansha/NNP
,/,
320/CD
pages/NNS
,/,
$/$
18.95/CD
baby/NN
boomers/NNS
on/IN
both/DT
sides/NNS
of/IN
the/DT
Pacific/NNP
have/VBP
a/DT
lot/NN
in/IN
common/NN
./.
Although/IN
set/VBN
in/IN
Japan/NNP
,/,
the/DT
novel/NN
's/POS
texture/NN
is/VBZ
almost/RB
entirely/RB
Western/JJ
,/,
especially/RB
American/JJ
./.
Characters/NNS
drink/VBP
Salty/NNP
Dogs/NNP
,/,
whistle/VBP
``/``
Johnny/NNP
B./NNP
Goode/NNP
''/''
and/CC
watch/VBP
Bugs/NNP
Bunny/NNP
reruns/NNS
./.
They/PRP
read/VBP
Mickey/NNP
Spillane/NNP
and/CC
talk/VBP
about/IN
Groucho/NNP
and/CC
Harpo/NNP
./.
They/PRP
worry/VBP
about/IN
their/PRP$
careers/NNS
,/,
drink/VBP
too/RB
much/RB
and/CC
suffer/VBP
through/IN
broken/VBN
marriages/NNS
and/CC
desultory/JJ
affairs/NNS
./.
This/DT
is/VBZ
Japan/NNP
?/.
For/IN
an/DT
American/JJ
reader/NN
,/,
part/NN
of/IN
the/DT
charm/NN
of/IN
this/DT
engaging/JJ
novel/NN
should/MD
come/VB
in/IN
recognizing/VBG
that/IN
Japan/NNP
is/VBZ
n't/RB
the/DT
buttoned-down/JJ
society/NN
of/IN
contemporary/JJ
American/JJ
lore/NN
./.
It/PRP
's/VBZ
also/RB
refreshing/VBG
to/TO
read/VB
a/DT
Japanese/JJ
author/NN
who/WP
clearly/RB
does/VBZ
n't/RB
belong/VB
to/TO
the/DT
self-aggrandizing/JJ
``/``
we-Japanese/JJ
''/''
school/NN
of/IN
writers/NNS
who/WP
perpetuate/VBP
the/DT
notion/NN
of/IN
the/DT
unique/JJ
Japanese/NN
,/,
unfathomable/JJ
by/IN
outsiders/NNS
./.
If/IN
``/``
A/DT
Wild/NNP
Sheep/NNP
Chase/NNP
''/''
carries/VBZ
an/DT
implicit/JJ
message/NN
for/IN
international/JJ
relations/NNS
,/,
it/PRP
's/VBZ
that/IN
the/DT
Japanese/NNS
are/VBP
more/RBR
like/IN
us/PRP
than/IN
most/JJS
of/IN
us/PRP
think/VBP
./.
That/DT
's/VBZ
not/RB
to/TO
say/VB
that/IN
the/DT
nutty/JJ
plot/NN
of/IN
``/``
A/DT
Wild/NNP
Sheep/NNP
Chase/NNP
''/''
is/VBZ
rooted/VBN
in/IN
reality/NN
./.
It/PRP
's/VBZ
imaginative/JJ
and/CC
often/RB
funny/JJ
./.
A/DT
disaffected/JJ
,/,
hard-drinking/JJ
,/,
nearly-30/JJ
hero/NN
sets/VBZ
off/IN
for/IN
snow/NN
country/NN
in/IN
search/NN
of/IN
an/DT
elusive/JJ
sheep/NN
with/IN
a/DT
star/NN
on/IN
its/PRP$
back/NN
at/IN
the/DT
behest/NN
of/IN
a/DT
sinister/JJ
,/,
erudite/JJ
mobster/NN
with/IN
a/DT
Stanford/NNP
degree/NN
./.
He/PRP
has/VBZ
in/IN
tow/NN
his/PRP$
prescient/JJ
girlfriend/NN
,/,
whose/WP$
sassy/JJ
retorts/NNS
mark/VBP
her/PRP
as/IN
anything/NN
but/CC
a/DT
docile/JJ
butterfly/NN
./.
Along/IN
the/DT
way/NN
,/,
he/PRP
meets/VBZ
a/DT
solicitous/JJ
Christian/JJ
chauffeur/NN
who/WP
offers/VBZ
the/DT
hero/NN
God/NNP
's/POS
phone/NN
number/NN
;/:
and/CC
the/DT
Sheep/NNP
Man/NNP
,/,
a/DT
sweet/JJ
,/,
roughhewn/JJ
figure/NN
who/WP
wears/VBZ
--/:
what/WP
else/RB
--/:
a/JJ
sheepskin/NN
./.
The/DT
40-year-old/JJ
Mr./NNP
Murakami/NNP
is/VBZ
a/DT
publishing/NN
sensation/NN
in/IN
Japan/NNP
./.
A/DT
more/RBR
recent/JJ
novel/NN
,/,
``/``
Norwegian/NNP
Wood/NNP
''/''
(/(
every/DT
Japanese/NN
under/IN
40/CD
seems/VBZ
to/TO
be/VB
fluent/JJ
in/IN
Beatles/NNP
lyrics/NNS
four/CD
million/CD
copies/NNS
since/IN
Kodansha/NNP
published/VBD
it/PRP
in/IN
1987/CD
./.
But/CC
he/PRP
is/VBZ
just/RB
one/CD
of/IN
several/JJ
youthful/JJ
writers/NNS
--/:
Tokyo/NNP
's/POS
brat/NN
pack/NN
--/:
who/WP
are/VBP
dominating/VBG
the/DT
best-seller/NN
charts/NNS
in/IN
Japan/NNP
./.
Their/PRP$
books/NNS
are/VBP
written/VBN
in/IN
idiomatic/JJ
,/,
contemporary/JJ
language/NN
and/CC
usually/RB
carry/VBP
hefty/JJ
dashes/NNS
of/IN
Americana/NNS
./.
In/IN
Robert/NNP
Whiting/NNP
's/POS
``/``
You/PRP
Gotta/NNP
Have/NNP
Wa/,
''/''
(/(
Macmillan/NNP
,/,
339/CD
pages/NNS
,/,
$/$
17.95/CD
the/DT
Beatles/NNP
give/VBP
way/NN
to/TO
baseball/NN
,/,
in/IN
the/DT
Nipponese/JJ
version/NN
we/PRP
would/MD
be/VB
hard/RB
put/VBN
to/TO
call/VB
a/DT
``/``
game/NN
./.
''/''
As/IN
Mr./NNP
Whiting/NNP
describes/VBZ
it/PRP
,/,
Nipponese/JJ
baseball/NN
is/VBZ
a/DT
``/``
mirror/NN
of/IN
Japan/NNP
's/POS
fabled/JJ
virtues/NNS
of/IN
hard/JJ
work/NN
and/CC
harmony/NN
./.
''/''
``/``
Wa/NNP
''/''
is/VBZ
Japanese/NNP
for/IN
``/``
team/NN
spirit/NN
''/''
and/CC
Japanese/JJ
ballplayers/NNS
have/VBP
miles/NNS
and/CC
miles/NNS
of/IN
it/PRP
./.
A/DT
player/NN
's/POS
commitment/NN
to/TO
practice/NN
and/CC
team/NN
image/NN
is/VBZ
as/RB
important/JJ
as/IN
his/PRP$
batting/NN
average/NN
./.
Polls/NNS
once/RB
named/VBD
Tokyo/NNP
Giants/NNP
star/NN
Tatsunori/NNP
Hara/NNP
,/,
a/DT
``/``
humble/JJ
,/,
uncomplaining/JJ
,/,
obedient/JJ
soul/NN
,/,
''/''
as/IN
the/DT
male/JJ
symbol/NN
of/IN
Japan/NNP
./.
But/CC
other/JJ
than/IN
the/DT
fact/NN
that/DT
besuboru/FW
is/VBZ
played/VBN
with/IN
a/DT
ball/NN
and/CC
a/DT
bat/NN
,/,
it/PRP
's/VBZ
unrecognizable/JJ
:/:
Fans/NNS
politely/RB
return/VBP
foul/JJ
balls/NNS
to/TO
stadium/NN
ushers/NNS
;/:
the/DT
strike/NN
zone/NN
expands/VBZ
depending/VBG
on/IN
the/DT
size/NN
of/IN
the/DT
hitter/NN
;/:
ties/NNS
are/VBP
permitted/VBN
--/:
even/JJ
welcomed/VBN
--/:
since/IN
they/PRP
honorably/RB
sidestep/VBP
the/DT
shame/NN
of/IN
defeat/NN
;/:
players/NNS
must/MD
abide/VB
by/IN
strict/JJ
rules/NNS
of/IN
conduct/NN
even/RB
in/IN
their/PRP$
personal/JJ
lives/NNS
--/:
players/NNS
for/IN
the/DT
Tokyo/NNP
Giants/NNP
,/,
for/IN
example/NN
,/,
must/MD
always/RB
wear/VB
ties/NNS
when/WRB
on/IN
the/DT
road/NN
./.
``/``
You/PRP
Gotta/NNP
Have/NNP
Wa/NNP
''/''
is/VBZ
the/DT
often/RB
amusing/JJ
chronicle/NN
of/IN
how/WRB
American/JJ
ballplayers/NNS
,/,
rationed/VBN
to/TO
two/CD
per/IN
team/NN
,/,
fare/VBP
in/IN
Japan/NNP
./.
Despite/IN
the/DT
enormous/JJ
sums/NNS
of/IN
money/NN
they/PRP
're/VBP
paid/VBN
to/TO
stand/VB
up/RP
at/IN
a/DT
Japanese/JJ
plate/NN
,/,
a/DT
good/JJ
number/NN
decide/VBP
it/PRP
's/VBZ
not/RB
worth/JJ
it/PRP
and/CC
run/VBP
for/IN
home/NN
./.
``/``
Funny/NNP
Business/NNP
''/''
(/(
Soho/NNP
,/,
228/CD
pages/NNS
,/,
$/$
17.95/CD
Gary/NNP
Katzenstein/NNP
is/VBZ
anything/NN
but/RB
./.
It/PRP
's/VBZ
the/DT
petulant/JJ
complaint/NN
of/IN
an/DT
impudent/JJ
American/NN
whom/WP
Sony/NNP
hosted/VBD
for/IN
a/DT
year/NN
while/IN
he/PRP
was/VBD
on/IN
a/DT
Luce/NNP
Fellowship/NNP
in/IN
Tokyo/NNP
--/:
to/IN
the/DT
regret/NN
of/IN
both/DT
parties/NNS
./.
In/IN
sometimes/RB
amusing/JJ
,/,
more/RBR
often/RB
supercilious/JJ
,/,
even/RB
vicious/JJ
passages/NNS
,/,
Mr./NNP
Katzenstein/NNP
describes/VBZ
how/WRB
Sony/NNP
invades/VBZ
even/RB
the/DT
most/RBS
mundane/JJ
aspects/NNS
of/IN
its/PRP$
workers/NNS
'/POS
lives/NNS
--/:
at/IN
the/DT
regimented/JJ
office/NN
,/,
where/WRB
employees/NNS
are/VBP
assigned/VBN
lunch/NN
partners/NNS
--/:
and/JJ
at/IN
``/``
home/NN
''/''
in/IN
the/DT
austere/JJ
company/NN
dormitory/NN
run/VBN
by/IN
a/DT
prying/JJ
caretaker/NN
./.
Some/DT
of/IN
his/PRP$
observations/NNS
about/IN
Japanese/JJ
management/NN
style/NN
are/VBP
on/IN
the/DT
mark/NN
./.
It/PRP
's/VBZ
probably/RB
true/JJ
that/IN
many/JJ
salarymen/NNS
put/VBN
in/IN
unproductive/JJ
overtime/NN
just/RB
for/IN
the/DT
sake/NN
of/IN
solidarity/NN
,/,
that/IN
the/DT
system/NN
is/VBZ
so/RB
hierarchical/JJ
that/IN
only/RB
the/DT
assistant/JJ
manager/NN
can/MD
talk/VB
to/TO
the/DT
manager/NN
and/CC
the/DT
manager/NN
to/TO
the/DT
general/JJ
manager/NN
,/,
and/CC
that/IN
Sony/NNP
was/VBD
chary/JJ
of/IN
letting/VBG
a/DT
young/JJ
,/,
short-term/JJ
American/JJ
employee/NN
take/VB
on/IN
any/DT
responsibility/NN
./.
All/DT
of/IN
this/DT
must/MD
have/VB
been/VBN
enormously/RB
frustrating/VBG
to/TO
Mr./NNP
Katzenstein/NNP
,/,
who/WP
went/VBD
to/TO
Sony/NNP
with/IN
degrees/NNS
in/IN
business/NN
and/CC
computer/NN
science/NN
and/CC
was/VBD
raring/JJ
to/TO
invent/VB
another/DT
Walkman/NNP
./.
But/CC
Sony/NNP
ultimately/RB
took/VBD
a/DT
lesson/NN
from/IN
the/DT
American/JJ
management/NN
books/NNS
and/CC
fired/VBD
Mr./NNP
Katzenstein/NNP
,/,
after/IN
he/PRP
committed/VBD
the/DT
social/JJ
crime/NN
of/IN
making/VBG
an/DT
appointment/NN
to/TO
see/VB
the/DT
venerable/JJ
Akio/NNP
Morita/NNP
,/,
founder/NN
of/IN
Sony/NNP
./.
It/PRP
's/VBZ
a/DT
shame/NN
their/PRP$
meeting/NN
never/RB
took/VBD
place/NN
./.
Mr./NNP
Katzenstein/NNP
certainly/RB
would/MD
have/VB
learned/VBD
something/NN
,/,
and/CC
it/PRP
's/VBZ
even/RB
possible/JJ
Mr./NNP
Morita/NNP
would/MD
have/VB
too/RB
./.
Ms./NNP
Kirkpatrick/NNP
,/,
the/DT
Journal/NNP
's/POS
deputy/NN
editorial/NN
features/NNS
editor/NN
,/,
worked/VBD
in/IN
Tokyo/NNP
for/IN
three/CD
years/NNS
./.
More/JJR
and/CC
more/JJR
corners/NNS
of/IN
the/DT
globe/NN
are/VBP
becoming/VBG
free/JJ
of/IN
tobacco/NN
smoke/NN
./.
In/IN
Singapore/NNP
,/,
a/DT
new/JJ
law/NN
requires/VBZ
smokers/NNS
to/TO
put/VB
out/RP
their/PRP$
cigarettes/NNS
before/IN
entering/VBG
restaurants/NNS
,/,
department/NN
stores/NNS
and/CC
sports/NNS
centers/NNS
or/CC
face/VB
a/DT
$/$
250/CD
fine/NN
./.
Discos/NNS
and/CC
private/JJ
clubs/NNS
are/VBP
exempt/JJ
from/IN
the/DT
ban/NN
,/,
and/CC
smoking/NN
will/MD
be/VB
permitted/VBN
in/IN
bars/NNS
except/IN
during/IN
meal/NN
hours/NNS
,/,
an/DT
official/NN
said/VBD
./.
Singapore/NNP
already/RB
bans/VBZ
smoking/NN
in/IN
all/DT
theaters/NNS
,/,
buses/NNS
,/,
public/JJ
elevators/NNS
,/,
hospitals/NNS
and/CC
fast-food/NN
restaurants/NNS
./.
In/IN
Malaysia/NNP
,/,
Siti/NNP
Zaharah/NNP
Sulaiman/NNP
,/,
a/DT
deputy/NN
minister/NN
in/IN
the/DT
prime/JJ
minister/NN
's/POS
office/NN
,/,
launched/VBD
a/DT
``/``
No-Smoking/NNP
Week/NNP
''/''
at/IN
the/DT
Mara/NNP
Institute/NNP
of/IN
Technology/NNP
near/IN
Kuala/NNP
Lumpur/NNP
and/CC
urged/VBD
other/JJ
schools/NNS
to/TO
ban/VB
on-campus/JJ
smoking/NN
./.
South/NNP
Korea/NNP
has/VBZ
different/JJ
concerns/NNS
./.
In/IN
Seoul/NNP
,/,
officials/NNS
began/VBD
visiting/VBG
about/RB
26,000/CD
cigarette/NN
stalls/NNS
to/TO
remove/VB
illegal/JJ
posters/NNS
and/CC
signboards/NNS
advertising/VBG
imported/VBN
cigarettes/NNS
./.
South/NNP
Korea/NNP
has/VBZ
opened/VBN
its/PRP$
market/NN
to/TO
foreign/JJ
cigarettes/NNS
but/CC
restricts/VBZ
advertising/NN
to/TO
designated/VBN
places/NNS
./.
A/DT
marketing/NN
study/NN
indicates/VBZ
that/IN
Hong/NNP
Kong/NNP
consumers/NNS
are/VBP
the/DT
most/RBS
materialistic/JJ
in/IN
the/DT
14/CD
major/JJ
markets/NNS
where/WRB
the/DT
survey/NN
was/VBD
carried/VBN
out/RP
./.
The/DT
study/NN
by/IN
the/DT
Backer/NNP
Spielvogel/NNP
Bates/NNP
ad/NN
agency/NN
also/RB
found/VBD
that/IN
the/DT
colony/NN
's/POS
consumers/NNS
feel/VBP
more/RBR
pressured/JJ
than/IN
those/DT
in/IN
any/DT
of/IN
the/DT
other/JJ
surveyed/VBN
markets/NNS
,/,
which/WDT
include/VBP
the/DT
U.S./NNP
and/CC
Japan/NNP
./.
The/DT
survey/NN
found/VBD
that/IN
nearly/RB
half/NN
of/IN
Hong/NNP
Kong/NNP
consumers/NNS
espouse/VBP
what/WP
it/PRP
identified/VBD
as/IN
materialistic/JJ
values/NNS
,/,
compared/VBN
with/IN
about/RB
one-third/JJ
in/IN
Japan/NNP
and/CC
the/DT
U.S/NNP
./.
More/JJR
than/IN
three/CD
in/IN
five/CD
said/VBD
they/PRP
are/VBP
under/IN
a/DT
great/JJ
deal/NN
of/IN
stress/NN
most/JJS
of/IN
the/DT
time/NN
,/,
compared/VBN
with/IN
less/JJR
than/IN
one/CD
in/IN
two/CD
U.S./NNP
consumers/NNS
and/CC
one/CD
in/IN
four/CD
in/IN
Japan/NNP
./.
The/DT
Thai/NNP
cabinet/NN
endorsed/VBD
Finance/NNP
Minister/NNP
Pramual/NNP
Sabhavasu/NNP
's/POS
proposal/NN
to/TO
build/VB
a/DT
$/$
19/CD
million/CD
conference/NN
center/NN
for/IN
a/DT
joint/JJ
meeting/NN
of/IN
the/DT
World/NNP
Bank/NNP
and/CC
International/NNP
Monetary/NNP
Fund/NNP
two/CD
years/NNS
from/IN
now/RB
./.
The/DT
meeting/NN
,/,
which/WDT
is/VBZ
expected/VBN
to/TO
draw/VB
20,000/CD
to/TO
Bangkok/NNP
,/,
was/VBD
going/VBG
to/TO
be/VB
held/VBN
at/IN
the/DT
Central/NNP
Plaza/NNP
Hotel/NNP
,/,
but/CC
the/DT
government/NN
balked/VBD
at/IN
the/DT
hotel/NN
's/POS
conditions/NNS
for/IN
undertaking/VBG
necessary/JJ
expansion/NN
./.
A/DT
major/JJ
concern/NN
about/IN
the/DT
current/JJ
plan/NN
is/VBZ
whether/IN
the/DT
new/JJ
center/NN
can/MD
be/VB
built/VBN
in/IN
such/JJ
a/DT
short/JJ
time/NN
./.
Yasser/NNP
Arafat/NNP
has/VBZ
written/VBN
to/TO
the/DT
chairman/NN
of/IN
the/DT
International/NNP
Olympic/NNP
Committee/NNP
asking/VBG
him/PRP
to/TO
back/VB
a/DT
Palestinian/JJ
bid/NN
to/TO
join/VB
the/DT
committee/NN
,/,
the/DT
Palestine/NNP
Liberation/NNP
Organization/NNP
news/NN
agency/NN
WAFA/NNP
said/VBD
./.
An/DT
official/NN
of/IN
the/DT
Palestinian/NNP
Olympic/NNP
Committee/NNP
said/VBD
the/DT
committee/NN
first/RB
applied/VBD
for/IN
membership/NN
in/IN
1979/CD
and/CC
renewed/VBD
its/PRP$
application/NN
in/IN
August/NNP
of/IN
this/DT
year/NN
./.
The/DT
PLO/NNP
in/IN
recent/JJ
months/NNS
has/VBZ
been/VBN
trying/VBG
to/TO
join/VB
international/JJ
organizations/NNS
but/CC
failed/VBD
earlier/RBR
this/DT
year/NN
to/TO
win/VB
membership/NN
in/IN
the/DT
World/NNP
Health/NNP
Organization/NNP
and/CC
the/DT
World/NNP
Tourism/NNP
Organization/NNP
./.
A/DT
Beijing/NNP
food-shop/JJ
assistant/NN
has/VBZ
become/VBN
the/DT
first/JJ
mainland/NN
Chinese/NN
to/TO
get/VB
AIDS/NNP
through/IN
sex/NN
,/,
the/DT
People/NNP
's/POS
Daily/NNP
said/VBD
./.
It/PRP
said/VBD
the/DT
man/NN
,/,
whom/WP
it/PRP
did/VBD
not/RB
name/VB
,/,
had/VBD
been/VBN
found/VBN
to/TO
have/VB
the/DT
disease/NN
after/IN
hospital/NN
tests/NNS
./.
Once/RB
the/DT
disease/NN
was/VBD
confirmed/VBN
,/,
all/DT
the/DT
man/NN
's/POS
associates/NNS
and/CC
family/NN
were/VBD
tested/VBN
,/,
but/CC
none/NN
have/VBP
so/RB
far/RB
been/VBN
found/VBN
to/TO
have/VB
AIDS/NNP
,/,
the/DT
newspaper/NN
said/VBD
./.
The/DT
man/NN
had/VBD
for/IN
a/DT
long/JJ
time/NN
had/VBN
``/``
a/DT
chaotic/JJ
sex/NN
life/NN
,/,
''/''
including/VBG
relations/NNS
with/IN
foreign/JJ
men/NNS
,/,
the/DT
newspaper/NN
said/VBD
./.
The/DT
Polish/JJ
government/NN
increased/VBD
home/NN
electricity/NN
charges/NNS
by/IN
150/CD
%/NN
and/CC
doubled/VBD
gas/NN
prices/NNS
./.
The/DT
official/JJ
news/NN
agency/NN
PAP/NNP
said/VBD
the/DT
increases/NNS
were/VBD
intended/VBN
to/TO
bring/VB
unrealistically/RB
low/JJ
energy/NN
charges/NNS
into/IN
line/NN
with/IN
production/NN
costs/NNS
and/CC
compensate/VB
for/IN
a/DT
rise/NN
in/IN
coal/NN
prices/NNS
./.
In/IN
happier/JJR
news/NN
,/,
South/NNP
Korea/NNP
,/,
in/IN
establishing/VBG
diplomatic/JJ
ties/NNS
with/IN
Poland/NNP
yesterday/NN
,/,
announced/VBD
$/$
450/CD
million/CD
in/IN
loans/NNS
to/TO
the/DT
financially/RB
strapped/VBN
Warsaw/NNP
government/NN
./.
In/IN
a/DT
victory/NN
for/IN
environmentalists/NNS
,/,
Hungary/NNP
's/POS
parliament/NN
terminated/VBD
a/DT
multibillion-dollar/JJ
River/NNP
Danube/NNP
dam/NN
being/VBG
built/VBN
by/IN
Austrian/JJ
firms/NNS
./.
The/DT
Nagymaros/NNP
dam/NN
was/VBD
designed/VBN
to/TO
be/VB
twinned/VBN
with/IN
another/DT
dam/NN
,/,
now/RB
nearly/RB
complete/JJ
,/,
100/CD
miles/NNS
upstream/RB
in/IN
Czechoslovakia/NNP
./.
In/IN
ending/VBG
Hungary/NNP
's/POS
part/NN
of/IN
the/DT
project/NN
,/,
Parliament/NNP
authorized/VBD
Prime/NNP
Minister/NNP
Miklos/NNP
Nemeth/NNP
to/TO
modify/VB
a/DT
1977/CD
agreement/NN
with/IN
Czechoslovakia/NNP
,/,
which/WDT
still/RB
wants/VBZ
the/DT
dam/NN
to/TO
be/VB
built/VBN
./.
Mr./NNP
Nemeth/NNP
said/VBD
in/IN
parliament/NN
that/IN
Czechoslovakia/NNP
and/CC
Hungary/NNP
would/MD
suffer/VB
environmental/JJ
damage/NN
if/IN
the/DT
twin/NN
dams/NNS
were/VBD
built/VBN
as/IN
planned/VBN
./.
Czechoslovakia/NNP
said/VBD
in/IN
May/NNP
it/PRP
could/MD
seek/VB
$/$
2/CD
billion/CD
from/IN
Hungary/NNP
if/IN
the/DT
twindam/NN

contract/NN
were/VBD
broken/VBN
./.
The/DT
Czech/JJ
dam/NN
ca/MD
n't/RB
be/VB
operated/VBN
solely/RB
at/IN
peak/NN
periods/NNS
without/IN
the/DT
Nagymaros/NNP
project/NN
./.
A/DT
painting/NN
by/IN
August/NNP
Strindberg/NNP
set/VBD
a/DT
Scandinavian/JJ
price/NN
record/NN
when/WRB
it/PRP
sold/VBD
at/IN
auction/NN
in/IN
Stockholm/NNP
for/IN
$/$
2.44/CD
million/CD
./.
``/``
Lighthouse/NNP
II/NNP
''/''
was/VBD
painted/VBN
in/IN
oils/NNS
by/IN
the/DT
playwright/NN
in/IN
1901/CD
.../:
After/IN
years/NNS
of/IN
decline/NN
,/,
weddings/NNS
in/IN
France/NNP
showed/VBD
a/DT
2.2/CD
%/NN
upturn/NN
last/JJ
year/NN
,/,
with/IN
6,000/CD
more/JJR
couples/NNS
exchanging/VBG
rings/NNS
in/IN
1988/CD
than/IN
in/IN
the/DT
previous/JJ
year/NN
,/,
the/DT
national/JJ
statistics/NNS
office/NN
said/VBD
./.
But/CC
the/DT
number/NN
of/IN
weddings/NNS
last/JJ
year/NN
--/:
271,124/CD
--/:
was/VBD
still/RB
well/RB
below/IN
the/DT
400,000/CD
registered/VBN
in/IN
1972/CD
,/,
the/DT
last/JJ
year/NN
of/IN
increasing/VBG
marriages/NNS
./.
BRAMALEA/NNP
Ltd./NNP
said/VBD
it/PRP
agreed/VBD
to/TO
issue/VB
100/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
85.1/CD
million/CD
10.5/CD
%/NN
senior/JJ
debentures/NNS
due/JJ
Nov./NNP
30/CD
,/,
1999/CD
,/,
together/RB
with/IN
100,000/CD
bond/NN
purchase/NN
warrants/NNS
./.
The/DT
Toronto-based/JJ
real/JJ
estate/NN
concern/NN
said/VBD
each/DT
bond/NN
warrant/NN
entitles/VBZ
the/DT
holder/NN
to/TO
buy/VB
C$/$
1,000/CD
principal/NN
amount/NN
of/IN
debentures/NNS
at/IN
par/NN
plus/CC
accrued/VBN
interest/NN
to/TO
the/DT
date/NN
of/IN
purchase/NN
./.
The/DT
warrants/NNS
expire/VBP
Nov./NNP
30/CD
,/,
1990/CD
./.
The/DT
issue/NN
will/MD
be/VB
swapped/VBN
into/IN
fixed-rate/JJ
U.S./NNP
dollars/NNS
at/IN
a/DT
rate/NN
the/DT
company/NN
said/VBD
is/VBZ
less/JJR
than/IN
9/CD
%/NN
;/:
a/DT
spokesman/NN
declined/VBD
to/TO
elaborate/VB
./.
Lead/JJ
underwriters/NNS
for/IN
the/DT
issue/NN
are/VBP
Scotia/NNP
McLeod/NNP
Inc./NNP
and/CC
RBC/NNP
Dominion/NNP
Securities/NNP
Inc./NNP
,/,
both/DT
Toronto-based/JJ
investment/NN
dealers/NNS
./.
Bramalea/NNP
said/VBD
it/PRP
expects/VBZ
to/TO
complete/VB
the/DT
issue/NN
by/IN
the/DT
end/NN
of/IN
the/DT
month/NN
./.
As/IN
an/DT
actor/NN
,/,
Charles/NNP
Lane/NNP
is/VBZ
n't/RB
the/DT
inheritor/NN
of/IN
Charlie/NNP
Chaplin/NNP
's/POS
spirit/NN
./.
Steve/NNP
Martin/NNP
has/VBZ
already/RB
laid/VBN
his/PRP$
claim/NN
to/TO
that/DT
./.
But/CC
it/PRP
is/VBZ
Mr./NNP
Lane/NNP
,/,
as/IN
movie/NN
director/NN
,/,
producer/NN
and/CC
writer/NN
,/,
who/WP
has/VBZ
been/VBN
obsessed/VBN
with/IN
refitting/VBG
Chaplin/NNP
's/POS
Little/NNP
Tramp/NNP
in/IN
a/DT
contemporary/JJ
way/NN
./.
In/IN
1976/CD
,/,
as/IN
a/DT
film/NN
student/NN
at/IN
the/DT
Purchase/NNP
campus/NN
of/IN
the/DT
State/NNP
University/NNP
of/IN
New/NNP
York/NNP
,/,
Mr./NNP
Lane/NNP
shot/VBD
``/``
A/DT
Place/NNP
in/IN
Time/NNP
,/,
''/''
a/DT
36-minute/JJ
black-and-white/JJ
film/NN
about/IN
a/DT
sketch/NN
artist/NN
,/,
a/DT
man/NN
of/IN
the/DT
streets/NNS
./.
Now/RB
,/,
13/CD
years/NNS
later/RBR
,/,
Mr./NNP
Lane/NNP
has/VBZ
revived/VBN
his/PRP$
Artist/NNP
in/IN
a/DT
full-length/JJ
movie/NN
called/VBN
``/``
Sidewalk/NNP
Stories/NNP
,/,
''/''
a/DT
poignant/JJ
piece/NN
of/IN
work/NN
about/IN
a/DT
modern-day/JJ
tramp/NN
./.
Of/IN
course/NN
,/,
if/IN
the/DT
film/NN
contained/VBD
dialogue/NN
,/,
Mr./NNP
Lane/NNP
's/POS
Artist/NNP
would/MD
be/VB
called/VBN
a/DT
homeless/JJ
person/NN
./.
So/RB
would/MD
the/DT
Little/NNP
Tramp/NNP
,/,
for/IN
that/DT
matter/NN
./.
I/PRP
say/VBP
``/``
contained/VBD
dialogue/NN
''/''
because/IN
``/``
Sidewalk/NNP
Stories/NNP
''/''
is/VBZ
n't/RB
really/RB
silent/JJ
at/IN
all/DT
./.
Composer/NN
Marc/NNP
Marder/NNP
,/,
a/DT
college/NN
friend/NN
of/IN
Mr./NNP
Lane/NNP
's/POS
who/WP
earns/VBZ
his/PRP$
living/NN
playing/VBG
the/DT
double/JJ
bass/NN
in/IN
classical/JJ
music/NN
ensembles/NNS
,/,
has/VBZ
prepared/VBN
an/DT
exciting/JJ
,/,
eclectic/JJ
score/NN
that/WDT
tells/VBZ
you/PRP
what/WP
the/DT
characters/NNS
are/VBP
thinking/VBG
and/CC
feeling/VBG
far/RB
more/RBR
precisely/RB
than/IN
intertitles/NNS
,/,
or/CC
even/RB
words/NNS
,/,
would/MD
./.
Much/RB
of/IN
Mr./NNP
Lane/NNP
's/POS
film/NN
takes/VBZ
a/DT
highly/RB
romanticized/VBN
view/NN
of/IN
life/NN
on/IN
the/DT
streets/NNS
no/DT
more/RBR
romanticized/VBN
than/IN
Mr./NNP
Chaplin/NNP
's/POS
notion/NN
of/IN
the/DT
Tramp/NNP
as/IN
the/DT
good-hearted/JJ
free/JJ
spirit/NN
Filmed/VBN
in/IN
lovely/JJ
black/NN
and/CC
white/NN
by/IN
Bill/NNP
Dill/NNP
,/,
the/DT
New/NNP
York/NNP
streets/NNS
of/IN
``/``
Sidewalk/NNP
Stories/NNP
''/''
seem/VBP
benign/JJ
./.
On/IN
Wall/NNP
Street/NNP
men/NNS
and/CC
women/NNS
walk/VBP
with/IN
great/JJ
purpose/NN
,/,
noticing/VBG
one/CD
another/DT
only/RB
when/WRB
they/PRP
jostle/VBP
for/IN
cabs/NNS
./.
The/DT
Artist/NNP
hangs/VBZ
out/RP
in/IN
Greenwich/NNP
Village/NNP
,/,
on/IN
a/DT
strip/NN
of/IN
Sixth/NNP
Avenue/NNP
populated/VBN
by/IN
jugglers/NNS
,/,
magicians/NNS
and/CC
other/JJ
good-natured/JJ
hustlers/NNS
./.
This/DT
clearly/RB
is/VBZ
not/RB
real/JJ
life/NN
:/:
no/DT
crack/NN
dealers/NNS
,/,
no/DT
dead-eyed/JJ
men/NNS
selling/VBG
four-year-old/JJ
copies/NNS
of/IN
Cosmopolitan/NNP
,/,
no/DT
one/PRP
curled/VBD
up/RP
in/IN
a/DT
cardboard/NN
box/NN
./.
The/DT
Artist/NNP
has/VBZ
his/PRP$
routine/NN
./.
He/PRP
spends/VBZ
his/PRP$
days/NNS
sketching/VBG
passers-by/NNS
,/,
or/CC
trying/VBG
to/TO
./.
At/IN
night/NN
he/PRP
returns/VBZ
to/TO
the/DT
condemned/VBN
building/NN
he/PRP
calls/VBZ
home/NN
./.
His/PRP$
life/NN
,/,
including/VBG
his/PRP$
skirmishes/NNS
with/IN
a/DT
competing/VBG
sketch/NN
artist/NN
,/,
seems/VBZ
carefree/JJ
./.
He/PRP
is/VBZ
his/PRP$
own/JJ
man/NN
./.
Then/RB
,/,
just/RB
as/IN
the/DT
Tramp/NNP
is/VBZ
given/VBN
a/DT
blind/JJ
girl/NN
to/TO
cure/VB
in/IN
``/``
City/NNP
Lights/NNP
,/,
''/''
the/DT
Artist/NNP
is/VBZ
put/VBN
in/IN
charge/NN
of/IN
returning/VBG
a/DT
two-year-old/JJ
waif/NN
Nicole/NNP
Alysia/NNP
whose/WP$
father/NN
has/VBZ
been/VBN
murdered/VBN
by/IN
thugs/NNS
,/,
to/TO
her/PRP$
mother/NN
./.
This/DT
cute/JJ
child/NN
turns/VBZ
out/RP
to/TO
be/VB
a/DT
blessing/NN
and/CC
a/DT
curse/NN
./.
She/PRP
gives/VBZ
the/DT
Artist/NNP
a/DT
sense/NN
of/IN
purpose/NN
,/,
but/CC
also/RB
alerts/VBZ
him/PRP
to/TO
the/DT
serious/JJ
inadequacy/NN
of/IN
his/PRP$
vagrant/JJ
life/NN
./.
The/DT
beds/NNS
at/IN
the/DT
Bowery/NNP
Mission/NNP
seem/VBP
far/JJ
drearier/RBR
when/WRB
he/PRP
has/VBZ
to/TO
tuck/VB
a/DT
little/JJ
girl/NN
into/IN
one/CD
of/IN
them/PRP
at/IN
night/NN
./.
To/TO
further/RBR
load/VB
the/DT
stakes/NNS
,/,
Mr./NNP
Lane/NNP
dreamed/VBD
up/RP
a/DT
highly/RB
improbable/JJ
romance/NN
for/IN
the/DT
Artist/NNP
,/,
with/IN
a/DT
young/JJ
woman/NN
who/WP
owns/VBZ
her/PRP$
own/JJ
children/NNS
's/POS
shop/NN
and/CC
who/WP
lives/VBZ
in/IN
an/DT
expensive/JJ
high-rise/JJ
apartment/NN
building/NN
./.
This/DT
story/NN
line/NN
might/MD
resonate/VB
more/RBR
strongly/RB
if/IN
Mr./NNP
Lane/NNP
had/VBD
as/RB
strong/JJ
a/DT
presence/NN
in/IN
front/NN
of/IN
the/DT
camera/NN
as/IN
he/PRP
does/VBZ
behind/IN
it/PRP
./.
Mr./NNP
Lane/NNP
's/POS
final/JJ
purpose/NN
is/VBZ
n't/RB
to/TO
glamorize/VB
the/DT
Artist/NNP
's/POS
vagabond/NN
existence/NN
./.
He/PRP
has/VBZ
a/DT
point/NN
he/PRP
wants/VBZ
to/TO
make/VB
,/,
and/CC
he/PRP
makes/VBZ
it/PRP
,/,
with/IN
a/DT
great/JJ
deal/NN
of/IN
force/NN
./.
The/DT
movie/NN
ends/VBZ
with/IN
sound/NN
,/,
the/DT
sound/NN
of/IN
street/NN
people/NNS
talking/VBG
,/,
and/CC
there/EX
is/VBZ
n't/RB
anything/NN
whimsical/JJ
or/CC
enviable/JJ
in/IN
those/DT
rough/JJ
,/,
beaten/JJ
voices/NNS
./.
The/DT
French/JJ
film/NN
maker/NN
Claude/NNP
Chabrol/NNP
has/VBZ
managed/VBN
another/DT
kind/NN
of/IN
weird/JJ
achievement/NN
with/IN
his/PRP$
``/``
Story/NNP
of/IN
Women/NNP
./.
''/''
He/PRP
has/VBZ
made/VBN
a/DT
harsh/JJ
,/,
brilliant/JJ
picture/NN
--/:
one/CD
that/WDT
's/VBZ
captivating/JJ
--/:
about/IN
a/DT
character/NN
who/WP
,/,
viewed/VBN
from/IN
the/DT
most/RBS
sympathetic/JJ
angle/NN
,/,
would/MD
seem/VB
disagreeable/JJ
./.
Yet/RB
this/DT
woman/NN
,/,
Marie-Louise/NNP
Giraud/NNP
,/,
carries/VBZ
historical/JJ
significance/NN
,/,
both/DT
as/IN
one/CD
of/IN
the/DT
last/JJ
women/NNS
to/TO
be/VB
executed/VBN
in/IN
France/NNP
and/CC
as/IN
a/DT
symbol/NN
of/IN
the/DT
Vichy/NNP
government/NN
's/POS
hypocrisy/NN
./.
While/IN
Vichy/NNP
collaborated/VBD
with/IN
the/DT
Germans/NNS
during/IN
World/NNP
War/NNP
II/NNP
in/IN
the/DT
deaths/NNS
of/IN
thousands/NNS
of/IN
Resistance/NNP
fighters/NNS
and/CC
Jews/NNS
,/,
its/PRP$
officials/NNS
needed/VBD
a/DT
diversionary/JJ
symbolic/JJ
traitor/NN
./.
Marie-Louise/NNP
,/,
a/DT
small-time/JJ
abortionist/NN
,/,
was/VBD
their/PRP$
woman/NN
./.
She/PRP
became/VBD
an/DT
abortionist/NN
accidentally/RB
,/,
and/CC
continued/VBD
because/IN
it/PRP
enabled/VBD
her/PRP
to/TO
buy/VB
jam/NN
,/,
cocoa/NN
and/CC
other/JJ
war-rationed/JJ
goodies/NNS
./.
She/PRP
was/VBD
untrained/JJ
and/CC
,/,
in/IN
one/CD
botched/JJ
job/NN
killed/VBD
a/DT
client/NN
./.
Her/PRP$
remorse/NN
was/VBD
shallow/JJ
and/CC
brief/JJ
./.
Although/IN
she/PRP
was/VBD
kind/JJ
and/CC
playful/JJ
to/TO
her/PRP$
children/NNS
,/,
she/PRP
was/VBD
dreadful/JJ
to/TO
her/PRP$
war-damaged/JJ
husband/NN
;/:
she/PRP
openly/RB
brought/VBD
her/PRP$
lover/NN
into/IN
their/PRP$
home/NN
./.
As/IN
presented/VBN
by/IN
Mr./NNP
Chabrol/NNP
,/,
and/CC
played/VBN
with/IN
thin-lipped/JJ
intensity/NN
by/IN
Isabelle/NNP
Huppert/NNP
,/,
Marie-Louise/NNP
Marie/NNP
Latour/NNP
in/IN
the/DT
film/NN
a/DT
nice/JJ
person/NN
./.
But/CC
she/PRP
did/VBD
n't/RB
deserve/VB
to/TO
have/VB
her/PRP$
head/NN
chopped/VBN
off/RP
./.
There/EX
is/VBZ
very/RB
little/JJ
to/TO
recommend/VB
``/``
Old/NNP
Gringo/NNP
,/,
''/''
a/DT
confused/JJ
rendering/NN
of/IN
the/DT
Carlos/NNP
Fuentes/NNP
novel/NN
of/IN
the/DT
Mexican/NNP
Revolution/NNP
./.
Most/JJS
of/IN
the/DT
picture/NN
is/VBZ
taken/VBN
up/RP
with/IN
endless/JJ
scenes/NNS
of/IN
many/JJ
people/NNS
either/CC
fighting/VBG
or/CC
eating/VBG
and/CC
drinking/VBG
to/TO
celebrate/VB
victory/NN
./.
I/PRP
mention/VBP
the/DT
picture/NN
only/RB
because/IN
many/JJ
bad/JJ
movies/NNS
have/VBP
a/DT
bright/JJ
spot/NN
,/,
and/CC
this/DT
one/CD
has/VBZ
Gregory/NNP
Peck/NNP
,/,
in/IN
a/DT
marvelously/RB
loose/JJ
and/CC
energetic/JJ
portrayal/NN
of/IN
an/DT
old/JJ
man/NN
who/WP
wants/VBZ
to/TO
die/VB
the/DT
way/NN
he/PRP
wants/VBZ
to/TO
die/VB
./.
Video/NNP
Tip/NNP
:/:
Before/IN
seeing/VBG
``/``
Sidewalk/NNP
Stories/NNP
,/,
''/''
take/VB
a/DT
look/NN
at/IN
``/``
City/NNP
Lights/NNP
,/,
''/''
Chaplin/NNP
's/POS
Tramp/NNP
at/IN
his/PRP$
finest/JJS
./.
Boeing/NNP
Co./NNP
said/VBD
it/PRP
is/VBZ
discussing/VBG
plans/NNS
with/IN
three/CD
of/IN
its/PRP$
regular/JJ
Japanese/JJ
suppliers/NNS
to/TO
possibly/RB
help/VB
build/VB
a/DT
larger/JJR
version/NN
of/IN
its/PRP$
popular/JJ
767/CD
twin-jet/NN
./.
The/DT
discussions/NNS
are/VBP
still/RB
in/IN
preliminary/JJ
stages/NNS
,/,
and/CC
the/DT
specific/JJ
details/NNS
have/VBP
n't/RB
been/VBN
worked/VBN
out/RP
between/IN
the/DT
Seattle/NNP
aerospace/NN
company/NN
and/CC
Kawasaki/NNP
Heavy/NNP
Industries/NNP
Ltd./NNP
,/,
Mitsubishi/NNP
Heavy/NNP
Industries/NNP
Ltd./NNP
and/CC
Fuji/NNP
Heavy/NNP
Industries/NNP
Ltd/NNP
./.
The/DT
three/CD
Japanese/JJ
companies/NNS
build/VBP
the/DT
body/NN
sections/NNS
of/IN
the/DT
767/CD
,/,
accounting/VBG
for/IN
a/DT
combined/JJ
15/CD
%/NN
of/IN
the/DT
aircraft/NN
./.
Japanese/JJ
press/NN
reports/NNS
have/VBP
speculated/VBN
that/IN
the/DT
Japanese/JJ
contribution/NN
could/MD
rise/VB
to/TO
between/IN
20/CD
%/NN
and/CC
25/CD
%/NN
under/IN
the/DT
new/JJ
program/NN
./.
If/IN
Boeing/NNP
goes/VBZ
ahead/RB
with/IN
the/DT
larger/JJR
767/CD
,/,
the/DT
plane/NN
could/MD
hit/VB
the/DT
market/NN
in/IN
the/DT
mid-1990s/NNS
./.
This/DT
is/VBZ
the/DT
year/NN
the/DT
negative/JJ
ad/NN
,/,
for/IN
years/NNS
a/DT
secondary/JJ
presence/NN
in/IN
most/JJS
political/JJ
campaigns/NNS
,/,
became/VBD
the/DT
main/JJ
event/NN
./.
The/DT
irony/NN
is/VBZ
that/IN
the/DT
attack/NN
commercial/NN
,/,
after/IN
getting/VBG
a/DT
boost/NN
in/IN
last/JJ
year/NN
's/POS
presidential/JJ
campaign/NN
,/,
has/VBZ
come/VBN
of/IN
age/NN
in/IN
an/DT
off-off/JJ
election/NN
year/NN
with/IN
only/RB
a/DT
few/JJ
contests/NNS
scattered/VBN
across/IN
the/DT
country/NN
./.
But/IN
in/IN
the/DT
three/CD
leading/VBG
political/JJ
contests/NNS
of/IN
1989/CD
,/,
the/DT
negative/JJ
ads/NNS
have/VBP
reached/VBN
new/JJ
levels/NNS
of/IN
hostility/NN
,/,
raising/VBG
fears/NNS
that/IN
this/DT
kind/NN
of/IN
mudslinging/NN
,/,
empty/JJ
of/IN
significant/JJ
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,/,
is/VBZ
ushering/VBG
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a/DT
new/JJ
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./.
``/``
Now/RB
,/,
''/''
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Joseph/NNP
Napolitan/NNP
,/,
a/DT
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,/,
``/``
the/DT
idea/NN
is/VBZ
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attack/VB
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,/,
last/RB
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always/RB
./.
''/''
A/DT
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the/DT
first/JJ
stirrings/NNS
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politics/NNS
,/,
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the/DT
dawn/NN
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the/DT
television/NN
age/NN
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a/DT
sometimes-tawdry/JJ
art/NN
form/NN
in/IN
1988/CD
,/,
has/VBZ
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./.
``/``
To/TO
get/VB
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's/POS
attention/NN
these/DT
days/NNS
,/,
''/''
says/VBZ
Douglas/NNP
Bailey/NNP
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a/DT
political/JJ
consultant/NN
,/,
``/``
your/PRP$
TV/NN
ad/NN
needs/VBZ
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be/VB
bold/JJ
and/CC
entertaining/JJ
,/,
and/CC
,/,
more/RBR
often/RB
than/IN
not/RB
,/,
that/WDT
means/VBZ
confrontational/JJ
./.
And/CC
,/,
unlike/IN
a/DT
few/JJ
years/NNS
ago/RB
,/,
you/PRP
do/VBP
n't/RB
even/RB
have/VB
to/TO
worry/VB
whether/IN
the/DT
ad/NN
is/VBZ
truthful/JJ
./.
''/''
In/IN
1989/CD
,/,
as/RB
often/RB
as/IN
not/RB
,/,
the/DT
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major/JJ
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are/VBP
prompted/VBN
by/IN
the/DT
ads/NNS
themselves/PRP
./.
Take/VB
a/DT
look/NN
,/,
then/RB
,/,
at/IN
the/DT
main/JJ
attack/NN
commercials/NNS
that/WDT
set/VBD
the/DT
tone/NN
for/IN
Tuesday/NNP
's/POS
elections/NNS
in/IN
New/NNP
York/NNP
City/NNP
,/,
New/NNP
Jersey/NNP
and/CC
Virginia/NNP
:/:
New/NNP
York/NNP
City/NNP
:/:
The/DT
screen/NN
fills/VBZ
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a/DT
small/JJ
,/,
tight/JJ
facial/JJ
shot/NN
of/IN
David/NNP
Dinkins/NNP
,/,
Democratic/JJ
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mayor/NN
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./.
``/``
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four/CD
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years/NNS
,/,
''/''
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disembodied/JJ
male/NN
voice/NN
./.
And/CC
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,/,
paid/VBN
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by/IN
Republican/NNP
Rudolph/NNP
Giuliani/NNP
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produced/VBN
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Roger/NNP
Ailes/NNP
,/,
the/DT
master/NN
of/IN
negative/JJ
TV/NN
ads/NNS
,/,
really/RB
gets/VBZ
down/RB
to/TO
business/NN
./.
Mr./NNP
Dinkins/NNP
,/,
the/DT
ad/NN
charges/VBZ
,/,
also/RB
failed/VBD
to/TO
report/VB
his/PRP$
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,/,
hid/VBD
his/PRP$
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a/DT
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company/NN
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a/DT
convicted/VBN
kidnapper/NN
``/``
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a/DT
phony/JJ
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no/DT
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,/,
no/DT
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./.
''/''
``/``
David/NNP
Dinkins/NNP
,/,
''/''
says/VBZ
the/DT
kicker/NN
,/,
``/``
Why/WRB
does/VBZ
he/PRP
always/RB
wait/VB
until/IN
he/PRP
's/VBZ
caught/VBN
?/.
''/''
``/``
Nasty/JJ
innuendoes/NNS
,/,
''/''
says/VBZ
John/NNP
Siegal/NNP
,/,
Mr./NNP
Dinkins/NNP
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``/``
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corruption/NN
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exist/VB
./.
''/''
Stung/VBN
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the/DT
Giuliani/NNP
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Mr./NNP
Dinkins/NNP
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consultants/NNS
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Robert/NNP
Shrum/NNP
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David/NNP
Doak/NNP
,/,
finally/RB
unleashed/VBD
a/DT
negative/JJ
ad/NN
of/IN
their/PRP$
own/JJ
./.
The/DT
screen/NN
shows/VBZ
two/CD
distorted/JJ
,/,
unrecognizable/JJ
photos/NNS
,/,
presumably/RB
of/IN
two/CD
politicians/NNS
./.
``/``
Compare/VB
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candidates/NNS
for/IN
mayor/NN
,/,
''/''
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the/DT
announcer/NN
./.
``/``
One/NN
says/VBZ
he/PRP
's/VBZ
for/IN
banning/VBG
cop-killer/JJ
bullets/NNS
./.
The/DT
other/JJ
has/VBZ
opposed/VBN
a/DT
ban/NN
on/IN
cop-killer/JJ
bullets/NNS
./.
One/NN
claims/VBZ
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's/VBZ
pro-choice/JJ
./.
The/DT
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a/DT
woman/NN
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right/NN
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choose/VB
./.
''/''
``/``
Funny/JJ
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,/,
''/''
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the/DT
kicker/NN
,/,
``/``
both/DT
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are/VBP
named/VBN
Rudolph/NNP
Giuliani/NNP
./.
''/''
Who/WP
's/VBZ
telling/VBG
the/DT
truth/NN
?/.
Everybody/NN
--/:
and/IN
nobody/NN
./.
It/PRP
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a/DT
classic/JJ
situation/NN
of/IN
ads/NNS
that/WDT
are/VBP
true/JJ
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always/RB
fully/RB
accurate/JJ
./.
Mr./NNP
Dinkins/NNP
did/VBD
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``/``
oversight/NN
''/''
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he/PRP
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being/VBG
considered/VBN
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a/DT
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job/NN
./.
He/PRP
was/VBD
on/IN
the/DT
board/NN
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an/DT
insurance/NN
company/NN
with/IN
financial/JJ
problems/NNS
,/,
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he/PRP
insists/VBZ
he/PRP
made/VBD
no/DT
secret/NN
of/IN
it/PRP
./.
The/DT
city/NN
's/POS
Campaign/NNP
Finance/NNP
Board/NNP
has/VBZ
refused/VBN
to/TO
pay/VB
Mr./NNP
Dinkins/NNP
$/$
95,142/CD
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matching/JJ
funds/NNS
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his/PRP$
campaign/NN
records/NNS
are/VBP
incomplete/JJ
./.
The/DT
campaign/NN
has/VBZ
blamed/VBN
these/DT
reporting/NN
problems/NNS
on/IN
computer/NN
errors/NNS
./.
And/CC
,/,
says/VBZ
Mr./NNP
Dinkins/NNP
,/,
he/PRP
did/VBD
n't/RB
know/VB
the/DT
man/NN
his/PRP$
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for/IN
a/DT
get-out-the-vote/JJ
effort/NN
had/VBD
been/VBN
convicted/VBN
of/IN
kidnapping/NN
./.
But/CC
,/,
say/VBP
Mr./NNP
Dinkins/NNP
's/POS
managers/NNS
,/,
he/PRP
did/VBD
have/VB
an/DT
office/NN
and/CC
his/PRP$
organization/NN
did/VBD
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members/NNS
./.
Mr./NNP
Giuliani/NNP
's/POS
campaign/NN
chairman/NN
,/,
Peter/NNP
Powers/NNP
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Dinkins/NNP
ad/NN
is/VBZ
``/``
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./.
''/''
The/DT
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he/PRP
argues/VBZ
,/,
``/``
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Giuliani/NNP
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always/RB
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pro-choice/JJ
,/,
even/RB
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he/PRP
has/VBZ
personal/JJ
reservations/NNS
./.
They/PRP
know/VBP
he/PRP
is/VBZ
generally/RB
opposed/VBN
to/TO
cop-killer/JJ
bullets/NNS
,/,
but/CC
that/IN
he/PRP
had/VBD
some/DT
reservations/NNS
about/IN
the/DT
language/NN
in/IN
the/DT
legislation/NN
./.
''/''
Virginia/NNP
:/:
Democratic/JJ
Lt./NNP
Gov./NNP
Douglas/NNP
Wilder/NNP
opened/VBD
his/PRP$
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with/IN
Republican/JJ
Marshall/NNP
Coleman/NNP
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an/DT
abortion/NN
commercial/NN
produced/VBN
by/IN
Frank/NNP
Greer/NNP
that/IN
analysts/NNS
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every/DT
political/JJ
persuasion/NN
agree/VBP
was/VBD
a/DT
tour/NN
de/FW
force/NN
./.
Against/IN
a/DT
shot/NN
of/IN
Monticello/NNP
superimposed/VBN
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an/DT
American/JJ
flag/NN
,/,
an/DT
announcer/NN
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the/DT
``/``
strong/JJ
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freedom/NN
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individual/JJ
liberty/NN
''/''
that/IN
Virginians/NNPS
have/VBP
nurtured/VBN
for/IN
generations/NNS
./.
Then/RB
,/,
just/RB
as/IN
an/DT
image/NN
of/IN
the/DT
statue/NN
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Thomas/NNP
Jefferson/NNP
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from/IN
the/DT
screen/NN
,/,
the/DT
announcer/NN
continues/VBZ
:/:
``/``
On/IN
the/DT
issue/NN
of/IN
abortion/NN
,/,
Marshall/NNP
Coleman/NNP
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take/VB
away/RB
your/PRP$
right/NN
to/TO
choose/VB
and/CC
give/VB
it/PRP
to/TO
the/DT
politicians/NNS
./.
''/''
That/DT
commercial/JJ
--/:
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said/VBD
Mr./NNP
Coleman/NNP
wanted/VBD
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take/VB
away/RB
the/DT
right/NN
of/IN
abortion/NN
``/``
even/RB
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cases/NNS
of/IN
rape/NN
and/CC
incest/NN
,/,
''/''
a/DT
charge/NN
Mr./NNP
Coleman/NNP
denies/VBZ
--/:
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the/DT
dynamics/NNS
of/IN
the/DT
campaign/NN
,/,
transforming/VBG
it/PRP
,/,
at/IN
least/JJS
in/IN
part/NN
,/,
into/IN
a/DT
referendum/NN
on/IN
abortion/NN
./.
The/DT
ad/NN
prompted/VBD
Mr./NNP
Coleman/NNP
,/,
the/DT
former/JJ
Virginia/NNP
attorney/NN
general/NN
,/,
to/TO
launch/VB
a/DT
series/NN
of/IN
advertisements/NNS
created/VBN
by/IN
Bob/NNP
Goodman/NNP
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designed/VBN
to/TO
shake/VB
Mr./NNP
Wilder/NNP
's/POS
support/NN
among/IN
the/DT
very/JJ
women/NNS
who/WP
were/VBD
attracted/VBN
by/IN
the/DT
abortion/NN
ad/NN
./.
The/DT
Coleman/NNP
counterattack/NN
featured/VBD
a/DT
close-up/NN
of/IN
a/DT
young/JJ
woman/NN
in/IN
shadows/NNS
and/CC
the/DT
ad/NN
suggested/VBD
that/IN
she/PRP
was/VBD
recalling/VBG
an/DT
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courtroom/NN
ordeal/NN
./.
A/DT
voice/NN
says/VBZ
,/,
``/``
C'mon/VB
,/,
now/RB
,/,
do/VBP
n't/RB
you/PRP
have/VB
boyfriends/NNS
?/.
''/''
Then/RB
an/DT
announcer/NN
interjects/VBZ
:/:
``/``
It/PRP
was/VBD
Douglas/NNP
Wilder/NNP
who/WP
introduced/VBD
a/DT
bill/NN
to/TO
force/VB
rape/NN
victims/NNS
age/NN
13/CD
and/CC
younger/JJR
to/TO
be/VB
interrogated/VBN
about/IN
their/PRP$
private/JJ
lives/NNS
by/IN
lawyers/NNS
for/IN
accused/VBN
rapists/NNS
./.
So/RB
the/DT
next/JJ
time/NN
Mr./NNP
Wilder/NNP
talks/VBZ
about/IN
the/DT
rights/NNS
of/IN
women/NNS
,/,
ask/VB
him/PRP
about/IN
this/DT
law/NN
he/PRP
tried/VBD
to/TO
pass/VB
./.
''/''
Mr./NNP
Wilder/NNP
did/VBD
introduce/VB
such/JJ
legislation/NN
17/CD
years/NNS
ago/RB
,/,
but/CC
he/PRP
did/VBD
so/RB
at/IN
the/DT
request/NN
of/IN
a/DT
constituent/NN
,/,
a/DT
common/JJ
legislative/JJ
technique/NN
used/VBN
by/IN
lawmakers/NNS
./.
The/DT
legislation/NN
itself/PRP
noted/VBD
that/IN
it/PRP
was/VBD
introduced/VBN
``/``
by/IN
request/NN
,/,
''/''
and/CC
in/IN
1983/CD
Mr./NNP
Wilder/NNP
introduced/VBD
a/DT
bill/NN
to/TO
protect/VB
rape/NN
victims/NNS
from/IN
unfounded/JJ
interrogation/NN
./.
``/``
People/NNS
have/VBP
grown/VBN
tired/JJ
of/IN
these/DT
ads/NNS
and/CC
Coleman/NNP
has/VBZ
gotten/VBN
the/DT
stigma/NN
of/IN
being/VBG
a/DT
negative/JJ
campaigner/NN
,/,
''/''
says/VBZ
Mark/NNP
Rozell/NNP
,/,
a/DT
political/JJ
scientist/NN
at/IN
Mary/NNP
Washington/NNP
College/NNP
./.
``/``
Wilder/NNP
has/VBZ
managed/VBN
to/TO
get/VB
across/RP
the/DT
idea/NN
that/IN
Coleman/NNP
will/MD
say/VB
anything/NN
to/TO
get/VB
elected/VBN
governor/NN
and/CC
--/:
more/RBR
important/JJ
--/:
has/VBZ
been/VBN
able/JJ
to/TO
put/VB
the/DT
onus/NN
for/IN
all/PDT
the/DT
negative/JJ
campaigning/NN
on/IN
Coleman/NNP
./.
''/''
Mr./NNP
Coleman/NNP
said/VBD
this/DT
week/NN
that/IN
he/PRP
would/MD
devote/VB
the/DT
remainder/NN
of/IN
the/DT
political/JJ
season/NN
to/TO
positive/JJ
campaigning/NN
,/,
but/CC
the/DT
truce/NN
lasted/VBD
only/RB
hours/NNS
./.
By/IN
Tuesday/NNP
night/NN
,/,
television/NN
stations/NNS
were/VBD
carrying/VBG
new/JJ
ads/NNS
featuring/VBG
Mr./NNP
Coleman/NNP
himself/PRP
raising/VBG
questions/NNS
about/IN
Mr./NNP
Wilder/NNP
's/POS
sensitivity/NN
to/TO
rape/NN
victims/NNS
./.
New/NNP
Jersey/NNP
:/:
The/DT
attacks/NNS
began/VBD
when/WRB
Democratic/JJ
Rep./NNP
James/NNP
Florio/NNP
aired/VBD
an/DT
ad/NN
featuring/VBG
a/DT
drawing/NN
of/IN
Pinocchio/NNP
and/CC
a/DT
photograph/NN
of/IN
Mr./NNP
Florio/NNP
's/POS
rival/NN
,/,
Republican/JJ
Rep./NNP
Jim/NNP
Courter/NNP
./.
``/``
Remember/VB
Pinocchio/NNP
?/.
''/''
says/VBZ
a/DT
female/JJ
voice/NN
./.
``/``
Consider/VB
Jim/NNP
Courter/NNP
./.
''/''
And/CC
then/RB
this/DT
commercial/NN
,/,
produced/VBN
by/IN
Bob/NNP
Squier/NNP
,/,
gets/VBZ
down/IN
to/TO
its/PRP$
own/JJ
mean/JJ
and/CC
dirty/JJ
business/NN
./.
Pictures/NNS
of/IN
rusted/VBN
oil/NN
drums/NNS
swim/VBP
into/IN
focus/NN
,/,
and/CC
the/DT
female/JJ
voice/NN
purrs/VBZ
,/,
``/``
That/DT
hazardous/JJ
waste/NN
on/IN
his/PRP$
{/(
Mr./NNP
Courter/NNP
's/POS
}/)
property/NN
--/:
the/DT
neighbors/NNS
are/VBP
suing/VBG
for/IN
consumer/NN
fraud/NN
./.
''/''
And/CC
the/DT
nose/NN
on/IN
Mr./NNP
Courter/NNP
's/POS
face/NN
grows/VBZ
./.
The/DT
only/JJ
fraud/NN
involved/VBN
,/,
cry/VBP
Mr./NNP
Courter/NNP
's/POS
partisans/NNS
,/,
is/VBZ
the/DT
Florio/NNP
commercial/NN
itself/PRP
,/,
and/CC
so/RB
the/DT
Courter/NNP
campaign/NN
has/VBZ
responded/VBN
with/IN
its/PRP$
own/JJ
Pinocchio/NNP
commercial/NN
,/,
produced/VBN
by/IN
Mr./NNP
Ailes/NNP
./.
In/IN
this/DT
one/NN
,/,
the/DT
screen/NN
fills/VBZ
with/IN
photographs/NNS
of/IN
both/DT
candidates/NNS
./.
``/``
Who/WP
's/VBZ
really/RB
lying/VBG
?/.
''/''
asks/VBZ
a/DT
female/JJ
voice/NN
./.
``/``
Florio/NNP
's/VBZ
lying/VBG
,/,
''/''
the/DT
voice/NN
goes/VBZ
on/RP
,/,
because/IN
``/``
the/DT
barrel/NN
on/IN
Courter/NNP
's/POS
land/NN
.../:
contained/VBD
heating/NN
oil/NN
,/,
was/VBD
cleaned/VBN
up/RP
and/CC
caused/VBD
no/DT
pollution/NN
./.
''/''
Mr./NNP
Courter/NNP
's/POS
long/JJ
nose/NN
shrinks/VBZ
while/IN
Mr./NNP
Florio/NNP
's/POS
grows/VBZ
./.
Who/WP
's/VBZ
telling/VBG
the/DT
truth/NN
?/.
Stephen/NNP
Salmore/NNP
,/,
a/DT
political/JJ
scientist/NN
at/IN
New/NNP
Jersey/NNP
's/POS
Eagleton/NNP
Institute/NNP
,/,
says/VBZ
it/PRP
's/VBZ
another/DT
example/NN
of/IN
an/DT
ad/NN
that/WDT
's/VBZ
true/JJ
but/CC
not/RB
fully/RB
accurate/JJ
./.
Barrels/NNS
were/VBD
dumped/VBN
on/IN
the/DT
Courter/NNP
property/NN
,/,
a/DT
complaint/NN
was/VBD
made/VBN
,/,
but/CC
there/EX
is/VBZ
no/DT
evidence/NN
the/DT
barrels/NNS
were/VBD
a/DT
serious/JJ
threat/NN
to/TO
the/DT
environment/NN
./.
Even/RB
so/RB
,/,
according/VBG
to/TO
Mr./NNP
Salmore/NNP
,/,
the/DT
ad/NN
was/VBD
``/``
devastating/VBG
''/''
because/IN
it/PRP
raised/VBD
questions/NNS
about/IN
Mr./NNP
Courter/NNP
's/POS
credibility/NN
./.
But/CC
it/PRP
's/VBZ
building/VBG
on/IN
a/DT
long/JJ
tradition/NN
./.
In/IN
1966/CD
,/,
on/IN
route/NN
to/TO
a/DT
re-election/NN
rout/NN
of/IN
Democrat/NNP
Frank/NNP
O'Connor/NNP
,/,
GOP/NNP
Gov./NNP
Nelson/NNP
Rockefeller/NNP
of/IN
New/NNP
York/NNP
appeared/VBD
in/IN
person/NN
saying/VBG
,/,
``/``
If/IN
you/PRP
want/VBP
to/TO
keep/VB
the/DT
crime/NN
rates/NNS
high/JJ
,/,
O'Connor/NNP
is/VBZ
your/PRP$
man/NN
./.
''/''
A/DT
seat/NN
on/IN
the/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
was/VBD
sold/VBN
for/IN
$/$
350,000/CD
,/,
down/RB
$/$
16,000/CD
from/IN
the/DT
previous/JJ
sale/NN
last/JJ
Friday/NNP
./.
Seats/NNS
currently/RB
are/VBP
quoted/VBN
at/IN
$/$
331,000/CD
,/,
bid/NN
,/,
and/CC
$/$
350,000/CD
,/,
asked/VBN
./.
The/DT
record/JJ
price/NN
for/IN
a/DT
full/JJ
membership/NN
on/IN
the/DT
exchange/NN
is/VBZ
$/$
550,000/CD
,/,
set/VBN
Aug./NNP
31/CD
,/,
1987/CD
./.
Japanese/JJ
investment/NN
in/IN
Southeast/NNP
Asia/NNP
is/VBZ
propelling/VBG
the/DT
region/NN
toward/IN
economic/JJ
integration/NN
./.
Interviews/NNS
with/IN
analysts/NNS
and/CC
business/NN
people/NNS
in/IN
the/DT
U.S./NNP
suggest/VBP
that/IN
Japanese/JJ
capital/NN
may/MD
produce/VB
the/DT
economic/JJ
cooperation/NN
that/IN
Southeast/JJ
Asian/JJ
politicians/NNS
have/VBP
pursued/VBN
in/IN
fits/NNS
and/CC
starts/NNS
for/IN
decades/NNS
./.
But/CC
Japan/NNP
's/POS
power/NN
in/IN
the/DT
region/NN
also/RB
is/VBZ
sparking/VBG
fears/NNS
of/IN
domination/NN
and/CC
posing/VBG
fresh/JJ
policy/NN
questions/NNS
./.
The/DT
flow/NN
of/IN
Japanese/JJ
funds/NNS
has/VBZ
set/VBN
in/IN
motion/NN
``/``
a/DT
process/NN
whereby/WRB
these/DT
economies/NNS
will/MD
be/VB
knitted/VBN
together/RB
by/IN
the/DT
great/JJ
Japanese/JJ
investment/NN
machine/NN
,/,
''/''
says/VBZ
Robert/NNP
Hormats/NNP
,/,
vice/NN
chairman/NN
of/IN
Goldman/NNP
Sachs/NNP
International/NNP
Corp/NNP
./.
In/IN
the/DT
past/JJ
five/CD
years/NNS
,/,
Japanese/JJ
companies/NNS
have/VBP
tripled/VBN
their/PRP$
commitments/NNS
in/IN
Asia/NNP
to/TO
$/$
5.57/CD
billion/CD
./.
In/IN
Thailand/NNP
,/,
for/IN
example/NN
,/,
the/DT
government/NN
's/POS
Board/NNP
of/IN
Investment/NNP
approved/VBD
$/$
705.6/CD
million/CD
of/IN
Japanese/JJ
investment/NN
in/IN
1988/CD
,/,
10/CD
times/NNS
the/DT
U.S./NNP
investment/NN
figure/NN
for/IN
the/DT
year/NN
./.
Japan/NNP
's/POS
commitment/NN
in/IN
Southeast/NNP
Asia/NNP
also/RB
includes/VBZ
steep/JJ
increases/NNS
in/IN
foreign/JJ
assistance/NN
and/CC
trade/NN
./.
Asia/NNP
's/POS
other/JJ
cash-rich/JJ
countries/NNS
are/VBP
following/VBG
Japan/NNP
's/POS
lead/NN
and/CC
pumping/VBG
capital/NN
into/IN
the/DT
region/NN
./.
In/IN
Taiwan/NNP
and/CC
South/NNP
Korea/NNP
,/,
rising/VBG
wages/NNS
are/VBP
forcing/VBG
manufacturers/NNS
to/TO
seek/VB
other/JJ
overseas/JJ
sites/NNS
for/IN
labor-intensive/JJ
production/NN
./.
These/DT
nations/NNS
,/,
known/VBN
as/IN
Asia/NNP
's/POS
``/``
little/JJ
tigers/NNS
,/,
''/''
also/RB
are/VBP
contributing/VBG
to/TO
Southeast/NNP
Asia/NNP
's/POS
integration/NN
,/,
but/CC
their/PRP$
influence/NN
will/MD
remain/VB
subordinate/JJ
to/TO
Japan/NNP
's/POS
./.
For/IN
recipient/JJ
countries/NNS
such/JJ
as/IN
Thailand/NNP
and/CC
Malaysia/NNP
,/,
the/DT
investment/NN
will/MD
provide/VB
needed/JJ
jobs/NNS
and/CC
spur/VB
growth/NN
./.
But/CC
Asian/JJ
nations/NNS
'/POS
harsh/JJ
memories/NNS
of/IN
their/PRP$
military/JJ
domination/NN
by/IN
Japan/NNP
in/IN
the/DT
early/JJ
part/NN
of/IN
this/DT
century/NN
make/VBP
them/PRP
fearful/JJ
of/IN
falling/VBG
under/IN
Japanese/JJ
economic/JJ
hegemony/NN
now/RB
./.
Because/IN
of/IN
budget/NN
constraints/NNS
in/IN
Washington/NNP
,/,
the/DT
U.S./NNP
encourages/VBZ
Japan/NNP
to/TO
share/VB
economic/JJ
burdens/NNS
in/IN
the/DT
region/NN
./.
But/CC
it/PRP
resists/VBZ
yielding/VBG
political/JJ
ground/NN
./.
In/IN
the/DT
coming/VBG
decade/NN
,/,
analysts/NNS
say/VBP
,/,
U.S.-Japanese/JJ
relations/NNS
will/MD
be/VB
tested/VBN
as/IN
Tokyo/NNP
comes/VBZ
to/TO
terms/NNS
with/IN
its/PRP$
new/JJ
status/NN
as/IN
the/DT
region/NN
's/POS
economic/JJ
behemoth/NN
./.
Japan/NNP
's/POS
swelling/VBG
investment/NN
in/IN
Southeast/NNP
Asia/NNP
is/VBZ
part/NN
of/IN
its/PRP$
economic/JJ
evolution/NN
./.
In/IN
the/DT
past/NN
decade/NN
,/,
Japanese/JJ
manufacturers/NNS
concentrated/VBD
on/IN
domestic/JJ
production/NN
for/IN
export/NN
./.
In/IN
the/DT
1990s/NNS
,/,
spurred/VBN
by/IN
rising/VBG
labor/NN
costs/NNS
and/CC
the/DT
strong/JJ
yen/NNS
,/,
these/DT
companies/NNS
will/MD
increasingly/RB
turn/VB
themselves/PRP
into/IN
multinationals/NNS
with/IN
plants/NNS
around/IN
the/DT
world/NN
./.
To/TO
capture/VB
the/DT
investment/NN
,/,
Southeast/JJ
Asian/JJ
nations/NNS
will/MD
move/VB
to/TO
accommodate/VB
Japanese/JJ
business/NN
./.
These/DT
nations/NNS
'/POS
internal/JJ
decisions/NNS
``/``
will/MD
be/VB
made/VBN
in/IN
a/DT
way/NN
not/RB
to/TO
offend/VB
their/PRP$
largest/JJS
aid/NN
donor/NN
,/,
largest/JJS
private/JJ
investor/NN
and/CC
largest/JJS
lender/NN
,/,
''/''
says/VBZ
Richard/NNP
Drobnick/NNP
,/,
director/NN
of/IN
the/DT
international/JJ
business/NN
and/CC
research/NN
program/NN
at/IN
the/DT
University/NNP
of/IN
Southern/NNP
California/NNP
's/POS
Graduate/NNP
School/NNP
of/IN
Business/NNP
./.
Japanese/JJ
money/NN
will/MD
help/VB
turn/VB
Southeast/NNP
Asia/NNP
into/IN
a/DT
more/RBR
cohesive/JJ
economic/JJ
region/NN
./.
But/CC
,/,
analysts/NNS
say/VBP
,/,
Asian/JJ
cooperation/NN
is/VBZ
n't/RB
likely/JJ
to/TO
parallel/VB
the/DT
European/NNP
Common/NNP
Market/NNP
approach/NN
./.
Rather/RB
,/,
Japanese/JJ
investment/NN
will/MD
spur/VB
integration/NN
of/IN
certain/JJ
sectors/NNS
,/,
says/VBZ
Kent/NNP
Calder/NNP
,/,
a/DT
specialist/NN
in/IN
East/JJ
Asian/JJ
economies/NNS
at/IN
the/DT
Woodrow/NNP
Wilson/NNP
School/NNP
for/IN
Public/NNP
and/CC
Internatonal/NNP
Affairs/NNP
at/IN
Princeton/NNP
University/NNP
./.
In/IN
electronics/NNS
,/,
for/IN
example/NN
,/,
a/DT
Japanese/JJ
company/NN
might/MD
make/VB
television/NN
picture/NN
tubes/NNS
in/IN
Japan/NNP
,/,
assemble/VB
the/DT
sets/NNS
in/IN
Malaysia/NNP
and/CC
export/VB
them/PRP
to/TO
Indonesia/NNP
./.
``/``
The/DT
effect/NN
will/MD
be/VB
to/TO
pull/VB
Asia/NN
together/RB
not/RB
as/IN
a/DT
common/JJ
market/NN
but/CC
as/IN
an/DT
integrated/JJ
production/NN
zone/NN
,/,
''/''
says/VBZ
Goldman/NNP
Sachs/NNP
's/POS
Mr./NNP
Hormats/NNP
./.
Countries/NNS
in/IN
the/DT
region/NN
also/RB
are/VBP
beginning/VBG
to/TO
consider/VB
a/DT
framework/NN
for/IN
closer/JJR
economic/JJ
and/CC
political/JJ
ties/NNS
./.
The/DT
economic/JJ
and/CC
foreign/JJ
ministers/NNS
of/IN
12/CD
Asian/JJ
and/CC
Pacific/NNP
nations/NNS
will/MD
meet/VB
in/IN
Australia/NNP
next/JJ
week/NN
to/TO
discuss/VB
global/JJ
trade/NN
issues/NNS
as/RB
well/RB
as/IN
regional/JJ
matters/NNS
such/JJ
as/IN
transportation/NN
and/CC
telecommunications/NN
./.
Participants/NNS
will/MD
include/VB
the/DT
U.S./NNP
,/,
Australia/NNP
,/,
Canada/NNP
,/,
Japan/NNP
,/,
South/NNP
Korea/NNP
and/CC
New/NNP
Zealand/NNP
as/RB
well/RB
as/IN
the/DT
six/CD
members/NNS
of/IN
the/DT
Association/NNP
of/IN
Southeast/NNP
Asian/NNP
Nations/NNPS
--/:
Thailand/NNP
,/,
Malaysia/NNP
,/,
Singapore/NNP
,/,
Indonesia/NNP
,/,
the/DT
Philippines/NNPS
and/CC
Brunei/NNP
./.
In/IN
addition/NN
,/,
the/DT
U.S./NNP
this/DT
year/NN
offered/VBD
its/PRP$
own/JJ
plan/NN
for/IN
cooperation/NN
around/IN
the/DT
Pacific/NNP
rim/NN
in/IN
a/DT
major/JJ
speech/NN
by/IN
Secretary/NNP
of/IN
State/NNP
James/NNP
Baker/NNP
,/,
following/VBG
up/RB
a/DT
proposal/NN
made/VBN
in/IN
January/NNP
by/IN
Australian/NNP
Prime/NNP
Minister/NNP
Bob/NNP
Hawke/NNP
./.
The/DT
Baker/NNP
proposal/NN
reasserts/VBZ
Washington/NNP
's/POS
intention/NN
to/TO
continue/VB
playing/VBG
a/DT
leading/VBG
political/JJ
role/NN
in/IN
the/DT
region/NN
./.
``/``
In/IN
Asia/NNP
,/,
as/IN
in/IN
Europe/NNP
,/,
a/DT
new/JJ
order/NN
is/VBZ
taking/VBG
shape/NN
,/,
''/''
Mr./NNP
Baker/NNP
said/VBD
./.
``/``
The/DT
U.S./NNP
,/,
with/IN
its/PRP$
regional/JJ
friends/NNS
,/,
must/MD
play/VB
a/DT
crucial/JJ
role/NN
in/IN
designing/VBG
its/PRP$
architecture/NN
./.
''/''
But/CC
maintaining/VBG
U.S./NNP
influence/NN
will/MD
be/VB
difficult/JJ
in/IN
the/DT
face/NN
of/IN
Japanese/JJ
dominance/NN
in/IN
the/DT
region/NN
./.
Japan/NNP
not/RB
only/RB
outstrips/VBZ
the/DT
U.S./NNP
in/IN
investment/NN
flows/NNS
but/CC
also/RB
outranks/VBZ
it/PRP
in/IN
trade/NN
with/IN
most/JJS
Southeast/JJ
Asian/JJ
countries/NNS
the/DT
U.S./NNP
remains/VBZ
the/DT
leading/VBG
trade/NN
partner/NN
for/IN
all/DT
of/IN
Asia/NNP
Moreover/RB
,/,
the/DT
Japanese/JJ
government/NN
,/,
now/RB
the/DT
world/NN
's/POS
largest/JJS
aid/NN
donor/NN
,/,
is/VBZ
pumping/VBG
far/RB
more/JJR
assistance/NN
into/IN
the/DT
region/NN
than/IN
the/DT
U.S./NNP
is/VBZ
./.
While/IN
U.S./NNP
officials/NNS
voice/VBP
optimism/NN
about/IN
Japan/NNP
's/POS
enlarged/JJ
role/NN
in/IN
Asia/NNP
,/,
they/PRP
also/RB
convey/VBP
an/DT
undertone/NN
of/IN
caution/NN
./.
``/``
There/EX
's/VBZ
an/DT
understanding/NN
on/IN
the/DT
part/NN
of/IN
the/DT
U.S./NNP
that/IN
Japan/NNP
has/VBZ
to/TO
expand/VB
its/PRP$
functions/NNS
''/''
in/IN
Asia/NNP
,/,
says/VBZ
J./NNP
Michael/NNP
Farren/NNP
,/,
undersecretary/NN
of/IN
commerce/NN
for/IN
trade/NN
./.
``/``
If/IN
they/PRP
approach/VBP
it/PRP
with/IN
a/DT
benevolent/JJ
,/,
altruistic/JJ
attitude/NN
,/,
there/EX
will/MD
be/VB
a/DT
net/JJ
gain/NN
for/IN
everyone/NN
./.
''/''
Some/DT
Asian/JJ
nations/NNS
are/VBP
apprehensive/JJ
about/IN
Washington/NNP
's/POS
demand/NN
that/IN
Tokyo/NNP
step/VB
up/RP
its/PRP$
military/JJ
spending/NN
to/TO
ease/VB
the/DT
U.S./NNP
security/NN
burden/NN
in/IN
the/DT
region/NN
./.
The/DT
issue/NN
is/VBZ
further/RBR
complicated/JJ
by/IN
uncertainty/NN
over/IN
the/DT
future/NN
of/IN
the/DT
U.S./NNP
's/POS
leases/NNS
on/IN
military/JJ
bases/NNS
in/IN
the/DT
Philippines/NNPS
and/CC
by/IN
a/DT
possible/JJ
U.S./NNP
troop/NN
reduction/NN
in/IN
South/NNP
Korea/NNP
./.
Many/JJ
Asians/NNPS
regard/VBP
a/DT
U.S./NNP
presence/NN
as/IN
a/DT
desirable/JJ
counterweight/NN
to/TO
Japanese/JJ
influence/NN
./.
``/``
No/DT
one/NN
wants/VBZ
the/DT
U.S./NNP
to/TO
pick/VB
up/RP
its/PRP$
marbles/NNS
and/CC
go/VB
home/RB
,/,
''/''
Mr./NNP
Hormats/NNP
says/VBZ
./.
For/IN
their/PRP$
part/NN
,/,
Taiwan/NNP
and/CC
South/NNP
Korea/NNP
are/VBP
expected/VBN
to/TO
step/VB
up/RP
their/PRP$

own/JJ
investments/NNS
in/IN
the/DT
next/JJ
decade/NN
to/TO
try/VB
to/TO
slow/VB
the/DT
Japanese/JJ
juggernaut/NN
./.
``/``
They/PRP
do/VBP
n't/RB
want/VB
Japan/NNP
to/TO
monopolize/VB
the/DT
region/NN
and/CC
sew/VB
it/PRP
up/RP
,/,
''/''
says/VBZ
Chong-sik/NNP
Lee/NNP
,/,
professor/NN
of/IN
East/JJ
Asian/JJ
politics/NNS
at/IN
the/DT
University/NNP
of/IN
Pennsylvania/NNP
./.
Cathryn/NNP
Rice/NNP
could/MD
hardly/RB
believe/VB
her/PRP$
eyes/NNS
./.
While/IN
giving/VBG
the/DT
Comprehensive/JJ
Test/NN
of/IN
Basic/JJ
Skills/NNS
to/TO
ninth/JJ
graders/NNS
at/IN
Greenville/NNP
High/NNP
School/NNP
last/JJ
March/NNP
16/CD
,/,
she/PRP
spotted/VBD
a/DT
student/NN
looking/VBG
at/IN
crib/JJ
sheets/NNS
./.
She/PRP
had/VBD
seen/VBN
cheating/NN
before/RB
,/,
but/CC
these/DT
notes/NNS
were/VBD
uncanny/JJ
./.
``/``
A/DT
stockbroker/NN
is/VBZ
an/DT
example/NN
of/IN
a/DT
profession/NN
in/IN
trade/NN
and/CC
finance/NN
.../:
./.
At/IN
the/DT
end/NN
of/IN
World/NNP
War/NNP
II/NNP
,/,
Germany/NNP
surrendered/VBD
before/IN
Japan/NNP
.../:
./.
The/DT
Senate-House/JJ
conference/NN
committee/NN
is/VBZ
used/VBN
when/WRB
a/DT
bill/NN
is/VBZ
passed/VBN
by/IN
the/DT
House/NNP
and/CC
Senate/NNP
in/IN
different/JJ
forms/NNS
./.
''/''
Virtually/RB
word/NN
for/IN
word/NN
,/,
the/DT
notes/NNS
matched/VBD
questions/NNS
and/CC
answers/NNS
on/IN
the/DT
social-studies/NN
section/NN
of/IN
the/DT
test/NN
the/DT
student/NN
was/VBD
taking/VBG
./.
In/IN
fact/NN
,/,
the/DT
student/NN
had/VBD
the/DT
answers/NNS
to/TO
almost/RB
all/DT
of/IN
the/DT
40/CD
questions/NNS
in/IN
that/DT
section/NN
./.
The/DT
student/NN
surrendered/VBD
the/DT
notes/NNS
,/,
but/CC
not/RB
without/IN
a/DT
protest/NN
./.
``/``
My/PRP$
teacher/NN
said/VBD
it/PRP
was/VBD
OK/UH
for/IN
me/PRP
to/TO
use/VB
the/DT
notes/NNS
on/IN
the/DT
test/NN
,/,
''/''
he/PRP
said/VBD
./.
The/DT
teacher/NN
in/IN
question/NN
was/VBD
Nancy/NNP
Yeargin/NNP
--/:
considered/VBN
by/IN
many/JJ
students/NNS
and/CC
parents/NNS
to/TO
be/VB
one/CD
of/IN
the/DT
best/JJS
at/IN
the/DT
school/NN
./.
Confronted/VBN
,/,
Mrs./NNP
Yeargin/NNP
admitted/VBD
she/PRP
had/VBD
given/VBN
the/DT
questions/NNS
and/CC
answers/VBZ
two/CD
days/NNS
before/IN
the/DT
examination/NN
to/TO
two/CD
low-ability/JJ
geography/NN
classes/NNS
./.
She/PRP
had/VBD
gone/VBN
so/RB
far/RB
as/IN
to/TO
display/VB
the/DT
questions/NNS
on/IN
an/DT
overhead/JJ
projector/NN
and/CC
underline/VB
the/DT
answers/NNS
./.
Mrs./NNP
Yeargin/NNP
was/VBD
fired/VBN
and/CC
prosecuted/VBN
under/IN
an/DT
unusual/JJ
South/NNP
Carolina/NNP
law/NN
that/WDT
makes/VBZ
it/PRP
a/DT
crime/NN
to/TO
breach/VB
test/NN
security/NN
./.
In/IN
September/NNP
,/,
she/PRP
pleaded/VBD
guilty/JJ
and/CC
paid/VBD
a/DT
$/$
500/CD
fine/NN
./.
Her/PRP$
alternative/NN
was/VBD
90/CD
days/NNS
in/IN
jail/NN
./.
Her/PRP$
story/NN
is/VBZ
partly/RB
one/NN
of/IN
personal/JJ
downfall/NN
./.
She/PRP
was/VBD
an/DT
unstinting/JJ
teacher/NN
who/WP
won/VBD
laurels/NNS
and/CC
inspired/VBD
students/NNS
,/,
but/CC
she/PRP
will/MD
probably/RB
never/RB
teach/VB
again/RB
./.
In/IN
her/PRP$
wake/NN
she/PRP
left/VBD
the/DT
bitterness/NN
and/CC
anger/NN
of/IN
a/DT
principal/NN
who/WP
was/VBD
her/PRP$
friend/NN
and/CC
now/RB
calls/VBZ
her/PRP
a/DT
betrayer/NN
;/:
of/IN
colleagues/NNS
who/WP
say/VBP
she/PRP
brought/VBD
them/PRP
shame/NN
;/:
of/IN
students/NNS
and/CC
parents/NNS
who/WP
defended/VBD
her/PRP
and/CC
insist/VBP
she/PRP
was/VBD
treated/VBN
harshly/RB
;/:
and/CC
of/IN
school-district/NN
officials/NNS
stunned/JJ
that/IN
despite/IN
the/DT
bald-faced/JJ
nature/NN
of/IN
her/PRP$
actions/NNS
,/,
she/PRP
became/VBD
something/NN
of/IN
a/DT
local/JJ
martyr/NN
./.
Mrs./NNP
Yeargin/NNP
's/POS
case/NN
also/RB
casts/VBZ
some/DT
light/NN
on/IN
the/DT
dark/JJ
side/NN
of/IN
school/NN
reform/NN
,/,
where/WRB
pressures/NNS
on/IN
teachers/NNS
are/VBP
growing/VBG
and/CC
where/WRB
high-stakes/JJ
testing/NN
has/VBZ
enhanced/VBN
the/DT
temptation/NN
to/TO
cheat/VB
./.
The/DT
1987/CD
statute/NN
Mrs./NNP
Yeargin/NNP
violated/VBD
was/VBD
designed/VBN
to/TO
enforce/VB
provisions/NNS
of/IN
South/NNP
Carolina/NNP
's/POS
school-improvement/JJ
laws/NNS
./.
Prosecutors/NNS
alleged/VBD
that/IN
she/PRP
was/VBD
trying/VBG
to/TO
bolster/VB
students/NNS
'/POS
scores/NNS
to/TO
win/VB
a/DT
bonus/NN
under/IN
the/DT
state/NN
's/POS
1984/CD
Education/NNP
Improvement/NNP
Act/NNP
./.
The/DT
bonus/NN
depended/VBD
on/IN
her/PRP$
ability/NN
to/TO
produce/VB
higher/JJR
student-test/JJ
scores/NNS
./.
``/``
There/EX
is/VBZ
incredible/JJ
pressure/NN
on/IN
school/NN
systems/NNS
and/CC
teachers/NNS
to/TO
raise/VB
test/NN
scores/NNS
,/,
''/''
says/VBZ
Walt/NNP
Haney/NNP
,/,
an/DT
education/NN
professor/NN
and/CC
testing/NN
specialist/NN
at/IN
Boston/NNP
College/NNP
./.
``/``
So/RB
efforts/NNS
to/TO
beat/VB
the/DT
tests/NNS
are/VBP
also/RB
on/IN
the/DT
rise/NN
./.
''/''
And/CC
most/RBS
disturbing/JJ
,/,
it/PRP
is/VBZ
educators/NNS
,/,
not/RB
students/NNS
,/,
who/WP
are/VBP
blamed/VBN
for/IN
much/RB
of/IN
the/DT
wrongdoing/NN
./.
A/DT
50-state/JJ
study/NN
released/VBN
in/IN
September/NNP
by/IN
Friends/NNPS
for/IN
Education/NNP
,/,
an/DT
Albuquerque/NNP
,/,
N.M./NNP
,/,
school-research/JJ
group/NN
,/,
concluded/VBD
that/IN
``/``
outright/JJ
cheating/NN
by/IN
American/JJ
educators/NNS
''/''
is/VBZ
``/``
common/JJ
./.
''/''
The/DT
group/NN
says/VBZ
standardized/JJ
achievement/NN
test/NN
scores/NNS
are/VBP
greatly/RB
inflated/VBN
because/IN
teachers/NNS
often/RB
``/``
teach/VBP
the/DT
test/NN
''/''
as/IN
Mrs./NNP
Yeargin/NNP
did/VBD
,/,
although/IN
most/JJS
are/VBP
never/RB
caught/VBN
./.
Evidence/NN
of/IN
widespread/JJ
cheating/NN
has/VBZ
surfaced/VBN
in/IN
several/JJ
states/NNS
in/IN
the/DT
last/JJ
year/NN
or/CC
so/RB
./.
California/NNP
's/POS
education/NN
department/NN
suspects/VBZ
adult/NN
responsibility/NN
for/IN
erasures/NNS
at/IN
40/CD
schools/NNS
that/WDT
changed/VBD
wrong/JJ
answers/NNS
to/TO
right/JJ
ones/NNS
on/IN
a/DT
statewide/JJ
test/NN
./.
After/IN
numerous/JJ
occurrences/NNS
of/IN
questionable/JJ
teacher/NN
help/NN
to/TO
students/NNS
,/,
Texas/NNP
is/VBZ
revising/VBG
its/PRP$
security/NN
practices/NNS
./.
And/CC
sales/NNS
of/IN
test-coaching/JJ
booklets/NNS
for/IN
classroom/NN
instruction/NN
are/VBP
booming/VBG
./.
These/DT
materials/NNS
,/,
including/VBG
Macmillan\/McGraw-Hill/NNP
School/NNP
Publishing/NNP
Co./NNP
's/POS
Scoring/NNP
High/NNP
and/CC
Learning/NNP
Materials/NNPS
--/:
are/VBP
nothing/NN
short/JJ
of/IN
sophisticated/JJ
crib/NN
sheets/NNS
,/,
according/VBG
to/TO
some/DT
recent/JJ
academic/JJ
research/NN
./.
By/IN
using/VBG
them/PRP
,/,
teachers/NNS
--/:
with/IN
administrative/JJ
blessing/NN
--/:
telegraph/VBP
to/TO
students/NNS
beforehand/RB
the/DT
precise/JJ
areas/NNS
on/IN
which/WDT
a/DT
test/NN
will/MD
concentrate/VB
,/,
and/CC
sometimes/RB
give/VB
away/RB
a/DT
few/JJ
exact/JJ
questions/NNS
and/CC
answers/NNS
./.
Use/NN
of/IN
Scoring/NNP
High/NNP
is/VBZ
widespread/JJ
in/IN
South/NNP
Carolina/NNP
and/CC
common/JJ
in/IN
Greenville/NNP
County/NNP
,/,
Mrs./NNP
Yeargin/NNP
's/POS
school/NN
district/NN
./.
Experts/NNS
say/VBP
there/EX
is/VBZ
n't/RB
another/DT
state/NN
in/IN
the/DT
country/NN
where/WRB
tests/NNS
mean/VBP
as/RB
much/JJ
as/IN
they/PRP
do/VBP
in/IN
South/NNP
Carolina/NNP
./.
Under/IN
the/DT
state/NN
's/POS
Education/NNP
Improvement/NNP
Act/NNP
,/,
low/JJ
test/NN
scores/NNS
can/MD
block/VB
students/NNS
'/POS
promotions/NNS
or/CC
force/VB
entire/JJ
districts/NNS
into/IN
wrenching/JJ
,/,
state-supervised/JJ
``/``
interventions/NNS
''/''
that/WDT
can/MD
mean/VB
firings/NNS
./.
High/JJ
test/NN
scores/NNS
,/,
on/IN
the/DT
other/JJ
hand/NN
,/,
bring/VB
recognition/NN
and/CC
extra/JJ
money/NN
--/:
a/IN
new/JJ
computer/NN
lab/NN
for/IN
a/DT
school/NN
,/,
grants/NNS
for/IN
special/JJ
projects/NNS
,/,
a/DT
bonus/NN
for/IN
the/DT
superintendent/NN
./.
And/CC
South/NNP
Carolina/NNP
says/VBZ
it/PRP
is/VBZ
getting/VBG
results/NNS
./.
Since/IN
the/DT
reforms/NNS
went/VBD
in/IN
place/NN
,/,
for/IN
example/NN
,/,
no/DT
state/NN
has/VBZ
posted/VBN
a/DT
higher/JJR
rate/NN
of/IN
improvement/NN
on/IN
the/DT
Scholastic/NNP
Aptitude/NNP
Test/NNP
than/IN
South/NNP
Carolina/NNP
,/,
although/IN
the/DT
state/NN
still/RB
posts/VBZ
the/DT
lowest/JJS
average/JJ
score/NN
of/IN
the/DT
about/IN
21/CD
states/NNS
who/WP
use/VBP
the/DT
SAT/NNP
as/IN
the/DT
primary/JJ
college/NN
entrance/NN
examination/NN
./.
Critics/NNS
say/VBP
South/NNP
Carolina/NNP
is/VBZ
paying/VBG
a/DT
price/NN
by/IN
stressing/VBG
improved/VBN
test/NN
scores/NNS
so/RB
much/RB
./.
Friends/NNPS
of/IN
Education/NNP
rates/VBZ
South/NNP
Carolina/NNP
one/CD
of/IN
the/DT
worst/JJS
seven/CD
states/NNS
in/IN
its/PRP$
study/NN
on/IN
academic/JJ
cheating/NN
./.
Says/VBZ
the/DT
organization/NN
's/POS
founder/NN
,/,
John/NNP
Cannell/NNP
,/,
prosecuting/VBG
Mrs./NNP
Yeargin/NNP
is/VBZ
``/``
a/DT
way/NN
for/IN
administrators/NNS
to/TO
protect/VB
themselves/PRP
and/CC
look/VB
like/IN
they/PRP
take/VBP
cheating/NN
seriously/RB
,/,
when/WRB
in/IN
fact/NN
they/PRP
do/VBP
n't/RB
take/VB
it/PRP
seriously/RB
at/IN
all/DT
./.
''/''
Paul/NNP
Sandifer/NNP
,/,
director/NN
of/IN
testing/NN
for/IN
the/DT
South/NNP
Carolina/NNP
department/NN
of/IN
education/NN
,/,
says/VBZ
Mr./NNP
Cannell/NNP
's/POS
allegations/NNS
of/IN
cheating/NN
``/``
are/VBP
purely/RB
without/IN
foundation/NN
,/,
''/''
and/CC
based/VBN
on/IN
unfair/JJ
inferences/NNS
./.
Partly/RB
because/IN
of/IN
worries/NNS
about/IN
potential/JJ
abuse/NN
,/,
however/RB
,/,
he/PRP
says/VBZ
the/DT
state/NN
will/MD
begin/VB
keeping/VBG
closer/JJR
track/NN
of/IN
achievement-test/NN
preparation/NN
booklets/NNS
next/JJ
spring/NN
./.
South/NNP
Carolina/NNP
's/POS
reforms/NNS
were/VBD
designed/VBN
for/IN
schools/NNS
like/IN
Greenville/NNP
High/NNP
School/NNP
./.
Standing/VBG
on/IN
a/DT
shaded/JJ
hill/NN
in/IN
a/DT
run-down/JJ
area/NN
of/IN
this/DT
old/JJ
textile/NN
city/NN
,/,
the/DT
school/NN
has/VBZ
educated/VBN
many/JJ
of/IN
South/NNP
Carolina/NNP
's/POS
best/JJS
and/CC
brightest/JJS
,/,
including/VBG
the/DT
state/NN
's/POS
last/JJ
two/CD
governors/NNS
,/,
Nobel/NNP
Prize/NNP
winning/JJ
physicist/NN
Charles/NNP
Townes/NNP
and/CC
actress/NN
Joanne/NNP
Woodward/NNP
./.
But/CC
by/IN
the/DT
early/JJ
1980s/NN
,/,
its/PRP$
glory/NN
had/VBD
faded/VBN
like/IN
the/DT
yellow/JJ
bricks/NNS
of/IN
its/PRP$
broad/JJ
facade/NN
./.
``/``
It/PRP
was/VBD
full/JJ
of/IN
violence/NN
and/CC
gangs/NNS
and/CC
kids/NNS
cutting/VBG
class/NN
,/,
''/''
says/VBZ
Linda/NNP
Ward/NNP
,/,
the/DT
school/NN
's/POS
principal/NN
./.
``/``
Crime/NN
was/VBD
awful/JJ
,/,
test/NN
scores/NNS
were/VBD
low/JJ
,/,
and/CC
there/EX
was/VBD
no/DT
enrollment/NN
in/IN
honors/NNS
programs/NNS
./.
''/''
Mrs./NNP
Ward/NNP
took/VBD
over/RB
in/IN
1986/CD
,/,
becoming/VBG
the/DT
school/NN
's/POS
seventh/JJ
principal/NN
in/IN
15/CD
years/NNS
./.
Her/PRP$
immediate/JJ
predecessor/NN
suffered/VBD
a/DT
nervous/JJ
breakdown/NN
./.
Prior/RB
to/TO
his/PRP$
term/NN
,/,
a/DT
teacher/NN
bled/VBD
to/TO
death/NN
in/IN
the/DT
halls/NNS
,/,
stabbed/VBN
by/IN
a/DT
student/NN
./.
Academically/RB
,/,
Mrs./NNP
Ward/NNP
says/VBZ
,/,
the/DT
school/NN
was/VBD
having/VBG
trouble/NN
serving/VBG
in/IN
harmony/NN
its/PRP$
two/CD
disparate/JJ
,/,
and/CC
evenly/RB
split/JJ
,/,
student/NN
groups/NNS
:/:
a/DT
privileged/JJ
white/JJ
elite/NN
from/IN
old/JJ
monied/JJ
neighborhoods/NNS
and/CC
blacks/NNS
,/,
many/JJ
of/IN
them/PRP
poor/JJ
,/,
from/IN
run-down/JJ
,/,
inner/JJ
city/NN
neighborhoods/NNS
./.
Mrs./NNP
Ward/NNP
resolved/VBD
to/TO
clean/VB
out/RP
``/``
deadwood/NN
''/''
in/IN
the/DT
school/NN
's/POS
faculty/NN
and/CC
restore/VB
safety/NN
,/,
and/CC
she/PRP
also/RB
had/VBD
some/DT
new/JJ
factors/NNS
working/VBG
in/IN
her/PRP$
behalf/NN
./.
One/CD
was/VBD
statewide/JJ
school/NN
reform/NN
,/,
which/WDT
raised/VBD
overall/JJ
educational/JJ
funding/NN
and/CC
ushered/VBD
in/IN
a/DT
new/JJ
public/JJ
spirit/NN
for/IN
school/NN
betterment/NN
./.
Another/DT
was/VBD
Nancy/NNP
Yeargin/NNP
,/,
who/WP
came/VBD
to/TO
Greenville/NNP
in/IN
1985/CD
,/,
full/JJ
of/IN
the/DT
energy/NN
and/CC
ambitions/NNS
that/IN
reformers/NNS
wanted/VBD
to/TO
reward/VB
./.
``/``
Being/VBG
a/DT
teacher/NN
just/RB
became/VBD
my/PRP$
life/NN
,/,
''/''
says/VBZ
the/DT
37-year-old/JJ
Mrs./NNP
Yeargin/NNP
,/,
a/DT
teacher/NN
for/IN
12/CD
years/NNS
before/IN
her/PRP$
dismissal/NN
./.
``/``
I/PRP
loved/VBD
the/DT
school/NN
,/,
its/PRP$
history/NN
./.
I/PRP
even/RB
dreamt/VBD
about/IN
school/NN
and/CC
new/JJ
things/NNS
to/TO
do/VB
with/IN
my/PRP$
students/NNS
./.
''/''
While/IN
Mrs./NNP
Ward/NNP
fired/VBD
and/CC
restructured/VBD
staff/NN
and/CC
struggled/VBD
to/TO
improve/VB
curriculum/NN
,/,
Mrs./NNP
Yeargin/NNP
worked/VBD
14-hour/JJ
days/NNS
and/CC
fast/RB
became/VBD
a/DT
student/NN
favorite/JJ
./.
In/IN
1986-87/CD
and/CC
1987-88/CD
,/,
she/PRP
applied/VBD
for/IN
and/CC
won/VBD
bonus/NN
pay/NN
under/IN
the/DT
reform/NN
law/NN
./.
Encouraged/JJ
by/IN
Mrs./NNP
Ward/NNP
,/,
Mrs./NNP
Yeargin/NNP
taught/VBD
honor/NN
students/NNS
in/IN
the/DT
state/NN
``/``
teacher/NN
cadet/NN
''/''
program/NN
,/,
a/DT
reform/NN
creation/NN
designed/VBN
to/TO
encourage/VB
good/JJ
students/NNS
to/TO
consider/VB
teaching/NN
as/IN
a/DT
career/NN
./.
She/PRP
won/VBD
grant/NN
money/NN
for/IN
the/DT
school/NN
,/,
advised/VBD
cheerleaders/NNS
,/,
ran/VBD
the/DT
pep/NN
club/NN
,/,
proposed/VBD
and/CC
taught/VBD
a/DT
new/JJ
``/``
Cultural/JJ
Literacy/NN
''/''
class/NN
in/IN
Western/JJ
Civilization/NN
and/CC
was/VBD
chosen/VBN
by/IN
the/DT
school/NN
PTA/NNP
as/IN
``/``
Teacher/NN
of/IN
the/DT
Year/NN
./.
''/''
``/``
She/PRP
was/VBD
an/DT
inspirational/JJ
lady/NN
;/:
she/PRP
had/VBD
it/PRP
all/RB
together/RB
,/,
''/''
says/VBZ
Laura/NNP
Dobson/NNP
,/,
a/DT
freshman/NN
at/IN
the/DT
University/NNP
of/IN
South/NNP
Carolina/NNP
who/WP
had/VBD
Mrs./NNP
Yeargin/NNP
in/IN
the/DT
teacher-cadet/JJ
class/NN
last/JJ
year/NN
./.
She/PRP
says/VBZ
that/IN
because/IN
of/IN
Mrs./NNP
Yeargin/NNP
she/PRP
gave/VBD
up/RP
ambitions/NNS
in/IN
architecture/NN
and/CC
is/VBZ
studying/VBG
to/TO
become/VB
a/DT
teacher/NN
./.
Mary/NNP
Beth/NNP
Marchand/NNP
,/,
a/DT
Greenville/NNP
11th/JJ
grader/NN
,/,
also/RB
says/VBZ
Mrs./NNP
Yeargin/NNP
inspired/VBD
her/PRP
to/TO
go/VB
into/IN
education/NN
./.
``/``
She/PRP
taught/VBD
us/PRP
more/JJR
in/IN
Western/JJ
Civilization/NN
than/IN
I/PRP
've/VBP
ever/RB
learned/VBN
in/IN
other/JJ
classes/NNS
,/,
''/''
says/VBZ
Kelli/NNP
Green/NNP
,/,
a/DT
Greenville/NNP
senior/NN
./.
In/IN
the/DT
classroom/NN
,/,
students/NNS
say/VBP
,/,
Mrs./NNP
Yeargin/NNP
distinguished/VBD
herself/PRP
by/IN
varying/VBG
teaching/NN
approaches/NNS
--/:
forcing/JJ
kids/NNS
to/TO
pair/VB
up/RB
to/TO
complete/VB
classroom/NN
work/NN
or/CC
using/VBG
college-bowl/NN
type/NN
competitions/NNS
./.
On/IN
weekends/NNS
,/,
she/PRP
came/VBD
to/TO
work/VB
to/TO
prepare/VB
study/NN
plans/NNS
or/CC
sometimes/RB
,/,
even/RB
to/TO
polish/VB
the/DT
furniture/NN
in/IN
her/PRP$
classroom/NN
./.
``/``
She/PRP
just/RB
never/RB
gave/VBD
it/PRP
up/RP
,/,
''/''
says/VBZ
Mary/NNP
Marchand/NNP
,/,
Mary/NNP
Beth/NNP
's/POS
mother/NN
./.
``/``
You/PRP
'd/MD
see/VB
her/PRP
correcting/VBG
homework/NN
in/IN
the/DT
stands/NNS
at/IN
a/DT
football/NN
game/NN
./.
''/''
Some/DT
fellow/JJ
teachers/NNS
,/,
however/RB
,/,
viewed/VBD
Mrs./NNP
Yeargin/NNP
as/IN
cocky/JJ
and/CC
too/RB
yielding/JJ
to/TO
students/NNS
./.
Mrs./NNP
Ward/NNP
says/VBZ
she/PRP
often/RB
defended/VBD
her/PRP
to/TO
colleagues/NNS
who/WP
called/VBD
her/PRP
a/DT
grandstander/NN
./.
Pressures/NNS
began/VBD
to/TO
build/VB
./.
Friends/NNS
told/VBD
her/PRP
she/PRP
was/VBD
pushing/VBG
too/RB
hard/RB
./.
Because/IN
of/IN
deteriorating/VBG
hearing/NN
,/,
she/PRP
told/VBD
colleagues/NNS
she/PRP
feared/VBD
she/PRP
might/MD
not/RB
be/VB
able/JJ
to/TO
teach/VB
much/RB
longer/RBR
./.
Mrs./NNP
Yeargin/NNP
's/POS
extra/JJ
work/NN
was/VBD
also/RB
helping/VBG
her/PRP
earn/VB
points/NNS
in/IN
the/DT
state/NN
's/POS
incentive-bonus/NN
program/NN
./.
But/CC
the/DT
most/RBS
important/JJ
source/NN
of/IN
points/NNS
was/VBD
student/NN
improvement/NN
on/IN
tests/NNS
./.
Huge/JJ
gains/NNS
by/IN
her/PRP$
students/NNS
in/IN
1987/CD
and/CC
1988/CD
meant/VBD
a/DT
total/NN
of/IN
$/$
5,000/CD
in/IN
bonuses/NNS
over/IN
two/CD
years/NNS
--/:
a/JJ
meaningful/JJ
addition/NN
to/TO
her/PRP$
annual/JJ
salary/NN
of/IN
$/$
23,000/CD
./.
Winning/VBG
a/DT
bonus/NN
for/IN
a/DT
third/JJ
year/NN
was/VBD
n't/RB
that/RB
important/JJ
to/TO
her/PRP
,/,
Mrs./NNP
Yeargin/NNP
insists/VBZ
./.
But/CC
others/NNS
at/IN
Greenville/NNP
High/NNP
say/VB
she/PRP
was/VBD
eager/JJ
to/TO
win/VB
--/:
if/JJ
not/RB
for/IN
money/NN
,/,
then/RB
for/IN
pride/NN
and/CC
recognition/NN
./.
Mary/NNP
Elizabeth/NNP
Ariail/NNP
,/,
another/DT
social-studies/NN
teacher/NN
,/,
says/VBZ
she/PRP
believed/VBD
Mrs./NNP
Yeargin/NNP
wanted/VBD
to/TO
keep/VB
her/PRP
standing/NN
high/RB
so/IN
she/PRP
could/MD
get/VB
a/DT
new/JJ
job/NN
that/WDT
would/MD
n't/RB
demand/VB
good/JJ
hearing/NN
./.
Indeed/RB
,/,
Mrs./NNP
Yeargin/NNP
was/VBD
interested/JJ
in/IN
a/DT
possible/JJ
job/NN
with/IN
the/DT
state/NN
teacher/NN
cadet/NN
program/NN
./.
Last/JJ
March/NNP
,/,
after/IN
attending/VBG
a/DT
teaching/NN
seminar/NN
in/IN
Washington/NNP
,/,
Mrs./NNP
Yeargin/NNP
says/VBZ
she/PRP
returned/VBD
to/TO
Greenville/NNP
two/CD
days/NNS
before/IN
annual/JJ
testing/NN
feeling/VBG
that/IN
she/PRP
had/VBD
n't/RB
prepared/VBN
her/PRP$
low-ability/JJ
geography/NN
students/NNS
adequately/RB
./.
When/WRB
test/NN
booklets/NNS
were/VBD
passed/VBN
out/RB
48/CD
hours/NNS
ahead/RB
of/IN
time/NN
,/,
she/PRP
says/VBZ
she/PRP
copied/VBD
questions/NNS
in/IN
the/DT
social/JJ
studies/NNS
section/NN
and/CC
gave/VBD
the/DT
answers/NNS
to/TO
students/NNS
./.
Mrs./NNP
Yeargin/NNP
admits/VBZ
she/PRP
made/VBD
a/DT
big/JJ
mistake/NN
but/CC
insists/VBZ
her/PRP$
motives/NNS
were/VBD
correct/JJ
./.
``/``
I/PRP
was/VBD
trying/VBG
to/TO
help/VB
kids/NNS
in/IN
an/DT
unfair/JJ
testing/NN
situation/NN
,/,
''/''
she/PRP
says/VBZ
./.
``/``
Only/RB
five/CD
of/IN
the/DT
40/CD
questions/NNS
were/VBD
geography/NN
questions/NNS
./.
The/DT
rest/NN
were/VBD
history/NN
,/,
sociology/NN
,/,
finance/NN
--/:
subjects/NNS
they/PRP
never/RB
had/VBD
./.
''/''
Mrs./NNP
Yeargin/NNP
says/VBZ
that/IN
she/PRP
also/RB
wanted/VBD
to/TO
help/VB
lift/VB
Greenville/NNP
High/NNP
School/NNP
's/POS
overall/JJ
test/NN
scores/NNS
,/,
usually/RB
near/IN
the/DT
bottom/NN
of/IN
14/CD
district/NN
high/JJ
schools/NNS
in/IN
rankings/NNS
carried/VBN
annually/RB
by/IN
local/JJ
newspapers/NNS
./.
Mostly/RB
,/,
she/PRP
says/VBZ
,/,
she/PRP
wanted/VBD
to/TO
prevent/VB
the/DT
damage/NN
to/TO
self-esteem/NN
that/IN
her/PRP$
low-ability/JJ
students/NNS
would/MD
suffer/VB
from/IN
doing/VBG
badly/RB
on/IN
the/DT
test/NN
./.
``/``
These/DT
kids/NNS
broke/VBD
my/PRP$
heart/NN
,/,
''/''
she/PRP
says/VBZ
./.
``/``
A/DT
whole/JJ
day/NN
goes/VBZ
by/RB
and/CC
no/DT
one/NN
even/RB
knows/VBZ
they/PRP
're/VBP
alive/JJ
./.
They/PRP
desperately/RB
needed/VBD
somebody/NN
who/WP
showed/VBD
they/PRP
cared/VBD
for/IN
them/PRP
,/,
who/WP
loved/VBD
them/PRP
./.
The/DT
last/JJ
thing/NN
they/PRP
needed/VBD
was/VBD
another/DT
drag-down/JJ
blow/NN
./.
''/''
School/NNP
officials/NNS
and/CC
prosecutors/NNS
say/VB
Mrs./NNP
Yeargin/NNP
is/VBZ
lying/VBG
./.
They/PRP
found/VBD
students/NNS
in/IN
an/DT
advanced/JJ
class/NN
a/DT
year/NN
earlier/RB
who/WP
said/VBD
she/PRP
gave/VBD
them/PRP
similar/JJ
help/NN
,/,
although/IN
because/IN
the/DT
case/NN
was/VBD
n't/RB
tried/VBN
in/IN
court/NN
,/,
this/DT
evidence/NN
was/VBD
never/RB
presented/VBN
publicly/RB
./.
``/``
That/DT
pretty/RB
much/RB
defeats/VBZ
any/DT
inkling/NN
that/IN
she/PRP
was/VBD
out/RP
to/TO
help/VB
the/DT
poor/JJ
underprivileged/JJ
child/NN
,/,
''/''
says/VBZ
Joe/NNP
Watson/NNP
,/,
the/DT
prosecutor/NN
in/IN
the/DT
case/NN
,/,
who/WP
is/VBZ
also/RB
president/NN
of/IN
Greenville/NNP
High/NNP
School/NNP
's/POS
alumni/NNS
association/NN
./.
Mrs./NNP
Yeargin/NNP
concedes/VBZ
that/IN
she/PRP
went/VBD
over/RB
the/DT
questions/NNS
in/IN
the/DT
earlier/JJR
class/NN
,/,
adding/VBG
:/:
``/``
I/PRP
wanted/VBD
to/TO
help/VB
all/DT
''/''
students/NNS
./.
Mr./NNP
Watson/NNP
says/VBZ
Mrs./NNP
Yeargin/NNP
never/RB
complained/VBD
to/TO
school/NN
officials/NNS
that/IN
the/DT
standardized/JJ
test/NN
was/VBD
unfair/JJ
./.
``/``
Do/VBP
I/PRP
have/VB
much/JJ
sympathy/NN
for/IN
her/PRP
?/.
''/''
Mr./NNP
Watson/NNP
asks/VBZ
./.
``/``
Not/RB
really/RB
./.
I/PRP
believe/VBP
in/IN
the/DT
system/NN
./.
I/PRP
believe/VBP
you/PRP
have/VBP
to/TO
use/VB
the/DT
system/NN
to/TO
change/VB
it/PRP
./.
What/WP
she/PRP
did/VBD
was/VBD
like/IN
taking/VBG
the/DT
law/NN
into/IN
your/PRP$
own/JJ
hands/NNS
./.
''/''
Mrs./NNP
Ward/NNP
says/VBZ
that/IN
when/WRB
the/DT
cheating/NN
was/VBD
discovered/VBN
,/,
she/PRP
wanted/VBD
to/TO
avoid/VB
the/DT
morale-damaging/JJ
public/JJ
disclosure/NN
that/IN
a/DT
trial/NN
would/MD
bring/VB
./.
She/PRP
says/VBZ
she/PRP
offered/VBD
Mrs./NNP
Yeargin/NNP
a/DT
quiet/JJ
resignation/NN
and/CC
thought/VBD
she/PRP
could/MD
help/VB
save/VB
her/PRP
teaching/NN
certificate/NN
./.
Mrs./NNP
Yeargin/NNP
declined/VBD
./.
``/``
She/PRP
said/VBD
something/NN
like/IN
`/``
You/PRP
just/RB
want/VBP
to/TO
make/VB
it/PRP
easy/JJ
for/IN
the/DT
school/NN
./.
'/''
I/PRP
was/VBD
dumbfounded/JJ
,/,
''/''
Mrs./NNP
Ward/NNP
recalls/VBZ
./.
``/``
It/PRP
was/VBD
like/IN
someone/NN
had/VBD
turned/VBN
a/DT
knife/NN
in/IN
me/PRP
./.
''/''
To/TO
the/DT
astonishment/NN
and/CC
dismay/NN
of/IN
her/PRP$
superiors/NNS
and/CC
legal/JJ
authorities/NNS
--/:
and/JJ
perhaps/RB
as/IN
a/DT
measure/NN
of/IN
the/DT
unpopularity/NN
of/IN
standardized/JJ
tests/NNS
--/:
Mrs/NNP
./.
Yeargin/NNP
won/VBD
widespread/JJ
local/JJ
support/NN
./.
The/DT
school-board/NN
hearing/NN
at/IN
which/WDT
she/PRP
was/VBD
dismissed/VBN
was/VBD
crowded/VBN
with/IN
students/NNS
,/,
teachers/NNS
and/CC
parents/NNS
who/WP
came/VBD
to/TO
testify/VB
on/IN
her/PRP$
behalf/NN
./.
Supportive/JJ
callers/NNS
decried/VBD
unfair/JJ
testing/NN
,/,
not/RB
Mrs./NNP
Yeargin/NNP
,/,
on/IN
a/DT
local/JJ
radio/NN
talk/NN
show/NN
on/IN
which/WDT
she/PRP
appeared/VBD
./.
The/DT
show/NN
did/VBD
n't/RB
give/VB
the/DT
particulars/NNS
of/IN
Mrs./NNP
Yeargin/NNP
's/POS
offense/NN
,/,
saying/VBG
only/RB
that/IN
she/PRP
helped/VBD
students/NNS
do/VB
better/RBR
on/IN
the/DT
test/NN
./.
``/``
The/DT
message/NN
to/TO
the/DT
board/NN
of/IN
education/NN
out/IN
of/IN
all/PDT
this/DT
is/VBZ
we/PRP
've/VBP
got/VBN
to/TO
take/VB
a/DT
serious/JJ
look/NN
at/IN
how/WRB
we/PRP
're/VBP
doing/VBG
our/PRP$
curriculum/NN
and/CC
our/PRP$
testing/NN
policies/NNS
in/IN
this/DT
state/NN
,/,
''/''
said/VBD
the/DT
talk-show/NN
host/NN
./.
Editorials/NNS
in/IN
the/DT
Greenville/NNP
newspaper/NN
allowed/VBD
that/IN
Mrs./NNP
Yeargin/NNP
was/VBD
wrong/JJ
,/,
but/CC
also/RB
said/VBD
the/DT
case/NN
showed/VBD
how/WRB
testing/NN
was/VBD
being/VBG
overused/VBN
./.
The/DT
radio/NN
show/NN
``/``
enraged/VBD
us/PRP
,/,
''/''
says/VBZ
Mrs./NNP
Ward/NNP
./.
Partly/RB
because/IN
of/IN
the/DT
show/NN
,/,
Mr./NNP
Watson/NNP
says/VBZ
,/,
the/DT
district/NN
decided/VBD
not/RB
to/TO
recommend/VB
Mrs./NNP
Yeargin/NNP
for/IN
a/DT
first-time/JJ
offenders/NNS
program/NN
that/WDT
could/MD
have/VB
expunged/VBN
the/DT
charges/NNS
and/CC
the/DT
conviction/NN
from/IN
her/PRP$
record/NN
./.
And/CC
legal/JJ
authorities/NNS
cranked/VBD
up/RP
an/DT
investigation/NN
worthy/JJ
of/IN
a/DT
murder/NN
case/NN
./.
Over/IN
50/CD
witnesses/NNS
,/,
mostly/RB
students/NNS
,/,
were/VBD
interviewed/VBN
./.
At/IN
Greenville/NNP
High/NNP
School/NNP
,/,
meanwhile/RB
,/,
some/DT
students/NNS
--/:
especially/RB
on/IN
the/DT
cheerleading/NN
squad/NN
--/:
were/VBD
crushed/JJ
./.
``/``
It/PRP
's/VBZ
hard/JJ
to/TO
explain/VB
to/TO
a/DT
17-year-old/JJ
why/WRB
someone/NN
they/PRP
like/VBP
had/VBD
to/TO
go/VB
,/,
''/''
says/VBZ
Mrs./NNP
Ward/NNP
./.
Soon/RB
,/,
T-shirts/NNS
appeared/VBD
in/IN
the/DT
corridors/NNS
that/WDT
carried/VBD
the/DT
school/NN
's/POS
familiar/JJ
red-and-white/JJ
GHS/NNP
logo/NN
on/IN
the/DT
front/NN
./.
On/IN
the/DT
back/NN
,/,
the/DT
shirts/NNS
read/VBD
,/,
``/``
We/PRP
have/VBP
all/PDT
the/DT
answers/NNS
./.
''/''
Many/JJ
colleagues/NNS
are/VBP
angry/JJ
at/IN
Mrs./NNP
Yeargin/NNP
./.
``/``
She/PRP
did/VBD
a/DT
lot/NN
of/IN
harm/NN
,/,
''/''
says/VBZ
Cathryn/NNP
Rice/NNP
,/,
who/WP
had/VBD
discovered/VBN
the/DT
crib/NN
notes/NNS
./.
``/``
We/PRP
work/VBP
damn/RB
hard/RB
at/IN
what/WP
we/PRP
do/VBP
for/IN
damn/RB
little/JJ
pay/NN
,/,
and/CC
what/WP
she/PRP
did/VBD
cast/VBN
unfair/JJ
aspersions/NNS
on/IN
all/DT
of/IN
us/PRP
./.
''/''
But/CC
several/JJ
teachers/NNS
also/RB
say/VBP
the/DT
incident/NN
casts/VBZ
doubt/NN
on/IN
the/DT
wisdom/NN
of/IN
evaluating/VBG
teachers/NNS
or/CC
schools/NNS
by/IN
using/VBG
standardized/JJ
test/NN
scores/NNS
./.
Says/VBZ
Gayle/NNP
Key/NNP
,/,
a/DT
mathematics/NN
teacher/NN
,/,
``/``
The/DT
incentive/NN
pay/NN
thing/NN
has/VBZ
opened/VBN
up/RP
a/DT
can/NN
of/IN
worms/NNS
./.
There/EX
may/MD
be/VB
others/NNS
doing/VBG
what/WP
she/PRP
did/VBD
./.
''/''
Mrs./NNP
Yeargin/NNP
says/VBZ
she/PRP
pleaded/VBD
guilty/JJ
because/IN
she/PRP
realized/VBD
it/PRP
would/MD
no/RB
longer/RBR
be/VB
possible/JJ
to/TO
win/VB
reinstatement/NN
,/,
and/CC
because/IN
she/PRP
was/VBD
afraid/JJ
of/IN
further/JJ
charges/NNS
./.
Mrs./NNP
Ward/NNP
,/,
for/IN
one/CD
,/,
was/VBD
relieved/JJ
./.
Despite/IN
the/DT
strong/JJ
evidence/NN
against/IN
Mrs./NNP
Yeargin/NNP
,/,
popular/JJ
sentiment/NN
was/VBD
so/RB
strong/JJ
in/IN
her/PRP$
favor/NN
,/,
Mrs./NNP
Ward/NNP
says/VBZ
,/,
that/IN
``/``
I/PRP
'm/VBP
afraid/JJ
a/DT
jury/NN
would/MD
n't/RB
have/VB
convicted/VBN
her/PRP
./.
''/''
Since/IN
chalk/NN
first/RB
touched/VBD
slate/NN
,/,
schoolchildren/NN
have/VBP
wanted/VBN
to/TO
know/VB
:/:
What/WP
's/VBZ
on/IN
the/DT
test/NN
?/.
These/DT
days/NNS
,/,
students/NNS
can/MD
often/RB
find/VB
the/DT
answer/NN
in/IN
test-coaching/JJ
workbooks/NNS
and/CC
worksheets/NNS
their/PRP$
teachers/NNS
give/VBP
them/PRP
in/IN
the/DT
weeks/NNS
prior/RB
to/TO
taking/VBG
standardized/JJ
achievement/NN
tests/NNS
./.
The/DT
mathematics/NN
section/NN
of/IN
the/DT
widely/RB
used/JJ
California/NNP
Achievement/NNP
Test/NNP
asks/VBZ
fifth/JJ
graders/NNS
:/:
``/``
What/WP
is/VBZ
another/DT
name/NN
for/IN
the/DT
Roman/JJ
numeral/NN
IX/CD
?/.
''/''
It/PRP
also/RB
asks/VBZ
them/PRP
to/TO
add/VB
two-sevenths/NNS
and/CC
three-sevenths/NNS
./.
Worksheets/NNS
in/IN
a/DT
test-practice/JJ
kit/NN
called/VBN
Learning/NNP
Materials/NNPS
,/,
sold/VBN
to/TO
schools/NNS
across/IN
the/DT
country/NN
by/IN
Macmillan\/McGraw-Hill/NNP
School/NNP
Publishing/NNP
Co./NNP
,/,
contain/VBP
the/DT
same/JJ
questions/NNS
./.
In/IN
many/JJ
other/JJ
instances/NNS
,/,
there/EX
is/VBZ
almost/RB
no/DT
difference/NN
between/IN
the/DT
real/JJ
test/NN
and/CC
Learning/NNP
Materials/NNPS
./.
What/WP
's/VBZ
more/JJR
,/,
the/DT
test/NN
and/CC
Learning/NNP
Materials/NNPS
are/VBP
both/DT
produced/VBN
by/IN
the/DT
same/JJ
company/NN
,/,
Macmillan\/McGraw-Hill/NNP
,/,
a/DT
joint/JJ
venture/NN
of/IN
McGraw-Hill/NNP
Inc./NNP
and/CC
Macmillan/NNP
's/POS
parent/NN
,/,
Britain/NNP
's/POS
Maxwell/NNP
Communication/NNP
Corp/NNP
./.
Close/JJ
parallels/NNS
between/IN
tests/NNS
and/CC
practice/NN
tests/NNS
are/VBP
common/JJ
,/,
some/DT
educators/NNS
and/CC
researchers/NNS
say/VBP
./.
Test-preparation/JJ
booklets/NNS
,/,
software/NN
and/CC
worksheets/NNS
are/VBP
a/DT
booming/VBG
publishing/VBG
subindustry/NN
./.
But/CC
some/DT
practice/NN
products/NNS
are/VBP
so/RB
similar/JJ
to/TO
the/DT
tests/NNS
themselves/PRP
that/IN
critics/NNS
say/VBP
they/PRP
represent/VBP
a/DT
form/NN
of/IN
school-sponsored/JJ
cheating/NN
./.
``/``
If/IN
I/PRP
took/VBD
{/(
these/DT
preparation/NN
booklets/NNS
my/PRP$
classroom/NN
,/,
I/PRP
'd/MD
have/VB
a/DT
hard/JJ
time/NN
justifying/VBG
to/TO
my/PRP$
students/NNS
and/CC
parents/NNS
that/IN
it/PRP
was/VBD
n't/RB
cheating/NN
,/,
''/''
says/VBZ
John/NNP
Kaminski/NNP
,/,
a/DT
Traverse/NNP
City/NNP
,/,
Mich./NNP
,/,
teacher/NN
who/WP
has/VBZ
studied/VBN
test/NN
coaching/NN
./.
He/PRP
and/CC
other/JJ
critics/NNS
say/VBP
such/JJ
coaching/NN
aids/NNS
can/MD
defeat/VB
the/DT
purpose/NN
of/IN
standardized/JJ
tests/NNS
,/,
which/WDT
is/VBZ
to/TO
gauge/VB
learning/NN
progress/NN
./.
``/``
It/PRP
's/VBZ
as/IN
if/IN
France/NNP
decided/VBD
to/TO
give/VB
only/JJ
French/JJ
history/NN
questions/NNS
to/TO
students/NNS
in/IN
a/DT
European/JJ
history/NN
class/NN
,/,
and/CC
when/WRB
everybody/NN
aces/VBZ
the/DT
test/NN
,/,
they/PRP
say/VBP
their/PRP$
kids/NNS
are/VBP
good/JJ
in/IN
European/JJ
history/NN
,/,
''/''
says/VBZ
John/NNP
Cannell/NNP
,/,
an/DT
Albuquerque/NNP
,/,
N.M./NNP
,/,
psychiatrist/NN
and/CC
founder/NN
of/IN
an/DT
educational/JJ
research/NN
organization/NN
,/,
Friends/NNPS
for/IN
Education/NNP
,/,
which/WDT
has/VBZ
studied/VBN
standardized/JJ
testing/NN
./.
Standardized/JJ
achievement/NN
tests/NNS
are/VBP
given/VBN
about/IN
10/CD
million/CD
times/NNS
a/DT
year/NN
across/IN
the/DT
country/NN
to/TO
students/NNS
generally/RB
from/IN
kindergarten/NN
through/IN
eighth/JJ
grade/NN
./.
The/DT
most/RBS
widely/RB
used/JJ
of/IN
these/DT
tests/NNS
are/VBP
Macmillan\/McGraw/NNP
's/POS
CAT/NNP
and/CC
Comprehensive/NNP
Test/NN
of/IN
Basic/JJ
Skills/NNS
;/:
the/DT
Iowa/NNP
Test/NN
of/IN
Basic/JJ
Skills/NNS
,/,
by/IN
Houghton/NNP
Mifflin/NNP
Co./NNP
;/:
and/CC
Harcourt/NNP
Brace/NNP
Jovanovich/NNP
Inc./NNP
's/POS
Metropolitan/NNP
Achievement/NNP
Test/NNP
and/CC
Stanford/NNP
Achievement/NNP
Test/NNP
./.
Sales/NNS
figures/NNS
of/IN
the/DT
test-prep/JJ
materials/NNS
are/VBP
n't/RB
known/JJ
,/,
but/CC
their/PRP$
reach/NN
into/IN
schools/NNS
is/VBZ
significant/JJ
./.
In/IN
Arizona/NNP
,/,
California/NNP
,/,
Florida/NNP
,/,
Louisiana/NNP
,/,
Maryland/NNP
,/,
New/NNP
Jersey/NNP
,/,
South/NNP
Carolina/NNP
and/CC
Texas/NNP
,/,
educators/NNS
say/VBP
they/PRP
are/VBP
common/JJ
classroom/NN
tools/NNS
./.
Macmillan\/McGraw/NN
says/VBZ
``/``
well/RB
over/IN
10/CD
million/CD
''/''
of/IN
its/PRP$
Scoring/NNP
High/NNP
test-preparation/JJ
books/NNS
have/VBP
been/VBN
sold/VBN
since/IN
their/PRP$
introduction/NN
10/CD
years/NNS
ago/RB
,/,
with/IN
most/JJS
sales/NNS
in/IN
the/DT
last/JJ
five/CD
years/NNS
./.
About/IN
20,000/CD
sets/NNS
of/IN
Learning/NNP
Materials/NNPS
teachers/NNS
'/POS
binders/NNS
have/VBP
also/RB
been/VBN
sold/VBN
in/IN
the/DT
past/JJ
four/CD
years/NNS
./.
The/DT
materials/NNS
in/IN
each/DT
set/NN
reach/VBP
about/IN
90/CD
students/NNS
./.
Scoring/NNP
High/NNP
and/CC
Learning/NNP
Materials/NNPS
are/VBP
the/DT
best-selling/JJS
preparation/NN
tests/NNS
./.
Michael/NNP
Kean/NNP
,/,
director/NN
of/IN
marketing/NN
for/IN
CTB/NNP
Macmillan\/McGraw/NNP
,/,
the/DT
Macmillan\/McGraw/NNP
division/NN
that/WDT
publishes/VBZ
Learning/NNP
Materials/NNPS
,/,
says/VBZ
it/PRP
is/VBZ
n't/RB
aimed/VBN
at/IN
improving/VBG
test/NN
scores/NNS
./.
He/PRP
also/RB
asserted/VBD
that/IN
exact/JJ
questions/NNS
were/VBD
n't/RB
replicated/VBN
./.
When/WRB
referred/VBN
to/TO
the/DT
questions/NNS
that/WDT
matched/VBN
,/,
he/PRP
said/VBD
it/PRP
was/VBD
coincidental/JJ
./.
Mr./NNP
Kaminski/NNP
,/,
the/DT
schoolteacher/NN
,/,
and/CC
William/NNP
Mehrens/NNP
,/,
a/DT
Michigan/NNP
State/NNP
University/NNP
education/NN
professor/NN
,/,
concluded/VBD
in/IN
a/DT
study/NN
last/JJ
June/NNP
that/IN
CAT/NNP
test/NN
versions/NNS
of/IN
Scoring/NNP
High/NNP
and/CC
Learning/NNP
Materials/NNPS
should/MD
n't/RB
be/VB
used/VBN
in/IN
the/DT
classroom/NN
because/IN
of/IN
their/PRP$
similarity/NN
to/TO
the/DT
actual/JJ
test/NN
./.
They/PRP
devised/VBD
a/DT
69-point/JJ
scale/NN
--/:
awarding/VBG
one/CD
point/NN
for/IN
each/DT
subskill/NN
measured/VBN
on/IN
the/DT
CAT/NNP
test/NN
--/:
to/TO
rate/VB
the/DT
closeness/NN
of/IN
test/NN
preparatives/NNS
to/TO
the/DT
fifth-grade/NN
CAT/NNP
./.
Because/IN
many/JJ
of/IN
these/DT
subskills/NNS
--/:
the/JJ
symmetry/NN
of/IN
geometrical/JJ
figures/NNS
,/,
metric/JJ
measurement/NN
of/IN
volume/NN
,/,
or/CC
pie/NN
and/CC
bar/NN
graphs/NNS
,/,
for/IN
example/NN
--/:
are/NN
only/RB
a/DT
small/JJ
part/NN
of/IN
the/DT
total/JJ
fifth-grade/NN
curriculum/NN
,/,
Mr./NNP
Kaminski/NNP
says/VBZ
,/,
the/DT
preparation/NN
kits/NNS
would/MD
n't/RB
replicate/VB
too/RB
many/JJ
,/,
if/IN
their/PRP$
real/JJ
intent/NN
was/VBD
general/JJ
instruction/NN
or/CC
even/RB
general/JJ
familiarization/NN
with/IN
test/NN
procedures/NNS
./.
But/CC
Learning/NNP
Materials/NNPS
matched/VBD
on/IN
66.5/CD
of/IN
69/CD
subskills/NNS
./.
Scoring/NNP
High/NNP
matched/VBD
on/IN
64.5/CD
./.
In/IN
CAT/NNP
sections/NNS
where/WRB
students/NNS
'/POS
knowledge/NN
of/IN
two-letter/JJ
consonant/JJ
sounds/NNS
is/VBZ
tested/VBN
,/,
the/DT
authors/NNS
noted/VBD
that/IN
Scoring/NNP
High/NNP
concentrated/VBD
on/IN
the/DT
same/JJ
sounds/NNS
that/IN
the/DT
test/NN
does/VBZ
--/:
to/IN
the/DT
exclusion/NN
of/IN
other/JJ
sounds/NNS
that/IN
fifth/JJ
graders/NNS
should/MD
know/VB
./.
Learning/NNP
Materials/NNPS
for/IN
the/DT
fifth-grade/NN
contains/VBZ
at/IN
least/JJS
a/DT
dozen/NN
examples/NNS
of/IN
exact/JJ
matches/NNS
or/CC
close/JJ
parallels/NNS
to/TO
test/NN
items/NNS
./.
Rick/NNP
Brownell/NNP
,/,
senior/JJ
editor/NN
of/IN
Scoring/NNP
High/NNP
,/,
says/VBZ
that/IN
Messrs./NNPS
Kaminski/NNP
and/CC
Mehrens/NNP
are/VBP
ignoring/VBG
``/``
the/DT
need/NN
students/NNS
have/VBP
for/IN
becoming/VBG
familiar/JJ
with/IN
tests/NNS
and/CC
testing/NN
format/NN
./.
''/''
He/PRP
said/VBD
authors/NNS
of/IN
Scoring/NNP
High/NNP
``/``
scrupulously/RB
avoid/VBP
''/''
replicating/VBG
exact/JJ
questions/NNS
,/,
but/CC
he/PRP
does/VBZ
n't/RB
deny/VB
that/IN
some/DT
items/NNS
are/VBP
similar/JJ
./.
When/WRB
Scoring/NNP
High/NNP
first/RB
came/VBD
out/RB
in/IN
1979/CD
,/,
it/PRP
was/VBD
a/DT
publication/NN
of/IN
Random/NNP
House/NNP
./.
McGraw-Hill/NNP
was/VBD
outraged/JJ
./.
In/IN
a/DT
1985/CD
advisory/NN
to/TO
educators/NNS
,/,
McGraw-Hill/NNP
said/VBD
Scoring/NNP
High/NNP
should/MD
n't/RB
be/VB
used/VBN
because/IN
it/PRP
represented/VBD
a/DT
``/``
parallel/JJ
form/NN
''/''
of/IN
the/DT
CAT/NNP
and/CC
CTBS/NNP
tests/NNS
./.
But/CC
in/IN
1988/CD
,/,
McGraw-Hill/NNP
purchased/VBD
the/DT
Random/NNP
House/NNP
unit/NN
that/WDT
publishes/VBZ
Scoring/NNP
High/NNP
,/,
which/WDT
later/RBR
became/VBD
part/NN
of/IN
Macmillan\/McGraw/NNP
./.
Messrs./NNPS
Brownell/NNP
and/CC
Kean/NNP
say/VBP
they/PRP
are/VBP
unaware/JJ
of/IN
any/DT
efforts/NNS
by/IN
McGraw-Hill/NNP
to/TO
modify/VB
or/CC
discontinue/VB
Scoring/NNP
High/NNP
./.
Alleghany/NNP
Corp./NNP
said/VBD
it/PRP
completed/VBD
the/DT
acquisition/NN
of/IN
Sacramento/NNP
Savings/NNPS
&/CC
Loan/NNP
Association/NNP
from/IN
the/DT
H.N./NNP
&/CC
Frances/NNP
C./NNP
Berger/NNP
Foundation/NNP
for/IN
$/$
150/CD
million/CD
./.
The/DT
Sacramento-based/JJ
S&L/NN
,/,
which/WDT
has/VBZ
44/CD
branch/NN
offices/NNS
in/IN
north/JJ
central/JJ
California/NNP
,/,
had/VBD
assets/NNS
of/IN
$/$
2.4/CD
billion/CD
at/IN
the/DT
end/NN
of/IN
September/NNP
./.
New/NNP
York-based/JJ
Alleghany/NNP
is/VBZ
an/DT
insurance/NN
and/CC
financial/JJ
services/NNS
concern/NN
./.
The/DT
purchase/NN
price/NN
includes/VBZ
two/CD
ancillary/JJ
companies/NNS
./.
The/DT
Department/NNP
of/IN
Health/NNP
and/CC
Human/NNP
Services/NNPS
plans/VBZ
to/TO
extend/VB
its/PRP$
moratorium/NN
on/IN
federal/JJ
funding/NN
of/IN
research/NN
involving/VBG
fetal-tissue/JJ
transplants/NNS
./.
Medical/JJ
researchers/NNS
believe/VBP
the/DT
transplantation/NN
of/IN
small/JJ
amounts/NNS
of/IN
fetal/JJ
tissue/NN
into/IN
humans/NNS
could/MD
help/VB
treat/VB
juvenile/JJ
diabetes/NN
and/CC
such/JJ
degenerative/JJ
diseases/NNS
as/IN
Alzheimer/NNP
's/POS
,/,
Parkinson/NNP
's/POS
and/CC
Huntington/NNP
's/POS
./.
But/CC
anti-abortionists/NNS
oppose/VBP
such/JJ
research/NN
because/IN
they/PRP
worry/VBP
that/IN
the/DT
development/NN
of/IN
therapies/NNS
using/VBG
fetal-tissue/JJ
transplants/NNS
could/MD
lead/VB
to/TO
an/DT
increase/NN
in/IN
abortions/NNS
./.
James/NNP
Mason/NNP
,/,
assistant/NN
secretary/NN
for/IN
health/NN
,/,
said/VBD
the/DT
ban/NN
on/IN
federal/JJ
funding/NN
of/IN
fetal-tissue/JJ
transplant/NN
research/NN
``/``
should/MD
be/VB
continued/VBN
indefinitely/RB
./.
''/''
He/PRP
said/VBD
the/DT
ban/NN
wo/MD
n't/RB
stop/VB
privately/RB
funded/VBN
tissue-transplant/JJ
research/NN
or/CC
federally/RB
funded/VBN
fetal-tissue/JJ
research/NN
that/WDT
does/VBZ
n't/RB
involve/VB
transplants/NNS
./.
Department/NN
officials/NNS
say/VBP
that/IN
HHS/NNP
Secretary/NNP
Louis/NNP
Sullivan/NNP
will/MD
support/VB
Dr./NNP
Mason/NNP
's/POS
ruling/NN
,/,
which/WDT
will/MD
be/VB
issued/VBN
soon/RB
in/IN
the/DT
form/NN
of/IN
a/DT
letter/NN
to/TO
the/DT
acting/JJ
director/NN
of/IN
the/DT
National/NNP
Institutes/NNPS
of/IN
Health/NNP
./.
Both/DT
Dr./NNP
Mason/NNP
and/CC
Dr./NNP
Sullivan/NNP
oppose/VBP
federal/JJ
funding/NN
for/IN
abortion/NN
,/,
as/IN
does/VBZ
President/NNP
Bush/NNP
,/,
except/IN
in/IN
cases/NNS
where/WRB
a/DT
woman/NN
's/POS
life/NN
is/VBZ
threatened/VBN
./.
The/DT
controversy/NN
began/VBD
in/IN
1987/CD
when/WRB
the/DT
National/NNP
Institutes/NNPS
of/IN
Health/NNP
,/,
aware/JJ
of/IN
the/DT
policy/NN
implications/NNS
of/IN
its/PRP$
research/NN
,/,
asked/VBD
for/IN
an/DT
HHS/NNP
review/NN
of/IN
its/PRP$
plan/NN
to/TO
implant/VB
fetal/JJ
tissue/NN
into/IN
the/DT
brain/NN
of/IN
a/DT
patient/NN
suffering/NN
from/IN
Parkinson/NNPS
's/POS
disease/NN
./.
The/DT
department/NN
placed/VBD
a/DT
moratorium/NN
on/IN
the/DT
research/NN
,/,
pending/VBG
a/DT
review/NN
of/IN
scientific/JJ
,/,
legal/JJ
and/CC
ethical/JJ
issues/NNS
./.
A/DT
majority/NN
of/IN
an/DT
NIH-appointed/JJ
panel/NN
recommended/VBD
late/RB
last/JJ
year/NN
that/IN
the/DT
research/NN
continue/VB
under/IN
carefully/RB
controlled/JJ
conditions/NNS
,/,
but/CC
the/DT
issue/NN
became/VBD
embroiled/VBN
in/IN
politics/NNS
as/IN
anti-abortion/JJ
groups/NNS
continued/VBD
to/TO
oppose/VB
federal/JJ
funding/NN
./.
The/DT
dispute/NN
has/VBZ
hampered/VBN
the/DT
administration/NN
's/POS
efforts/NNS
to/TO
recruit/VB
prominent/JJ
doctors/NNS
to/TO
fill/VB
prestigious/JJ
posts/NNS
at/IN
the/DT
helm/NN
of/IN
the/DT
NIH/NNP
and/CC
the/DT
Centers/NNPS
for/IN
Disease/NNP
Control/NNP
./.
Several/JJ
candidates/NNS
have/VBP
withdrawn/VBN
their/PRP$
names/NNS
from/IN
consideration/NN
after/IN
administration/NN
officials/NNS
asked/VBD
them/PRP
for/IN
their/PRP$
views/NNS
on/IN
abortion/NN
and/CC
fetal-tissue/JJ
transplants/NNS
./.
Antonio/NNP
Novello/NNP
,/,
whom/WP
Mr./NNP
Bush/NNP
nominated/VBD
to/TO
serve/VB
as/IN
surgeon/NN
general/NN
,/,
reportedly/RB
has/VBZ
assured/VBN
the/DT
administration/NN
that/IN
she/PRP
opposes/VBZ
abortion/NN
./.
Dr./NNP
Novello/NNP
is/VBZ
deputy/NN
director/NN
of/IN
the/DT
National/NNP
Institute/NNP
of/IN
Child/NNP
Health/NNP
and/CC
Human/NNP
Development/NNP
./.
Some/DT
researchers/NNS
have/VBP
charged/VBN
that/IN
the/DT
administration/NN
is/VBZ
imposing/VBG
new/JJ
ideological/JJ
tests/NNS
for/IN
top/JJ
scientific/JJ
posts/NNS
./.
Earlier/JJR
this/DT
week/NN
,/,
Dr./NNP
Sullivan/NNP
tried/VBD
to/TO
defuse/VB
these/DT
charges/NNS
by/IN
stressing/VBG
that/IN
candidates/NNS
to/TO
head/VB
the/DT
NIH/NNP
and/CC
the/DT
CDC/NNP
will/MD
be/VB
judged/VBN
by/IN
``/``
standards/NNS
of/IN
scientific/JJ
and/CC
administrative/JJ
excellence/NN
,/,
''/''
not/RB
politics/NNS
./.
But/CC
the/DT
administration/NN
's/POS
handling/NN
of/IN
the/DT
fetal-tissue/JJ
transplant/NN
issue/NN
disturbs/VBZ
many/JJ
scientists/NNS
./.
``/``
When/WRB
scientific/JJ
progress/NN
moves/VBZ
into/IN
uncharted/JJ
ground/NN
,/,
there/EX
has/VBZ
to/TO
be/VB
a/DT
role/NN
for/IN
society/NN
to/TO
make/VB
judgments/NNS
about/IN
its/PRP$
applications/NNS
,/,
''/''
says/VBZ
Myron/NNP
Genel/NNP
,/,
associate/NN
dean/NN
of/IN
the/DT
Yale/NNP
Medical/NNP
School/NNP
./.
``/``
The/DT
disturbing/JJ
thing/NN
about/IN
this/DT
abortion/NN
issue/NN
is/VBZ
that/IN
the/DT
debate/NN
has/VBZ
become/VBN
polarized/VBN
,/,
so/IN
that/IN
no/DT
mechanism/NN
exists/VBZ
''/''
for/IN
finding/VBG
a/DT
middle/JJ
ground/NN
./.
Yale/NNP
is/VBZ
one/CD
of/IN
the/DT
few/JJ
medical/JJ
institutions/NNS
conducting/VBG
privately/RB
funded/JJ
research/NN
on/IN
fetal-tissue/JJ
transplants/NNS
./.
But/CC
Dr./NNP
Genel/NNP
warns/VBZ
that/IN
Dr./NNP
Mason/NNP
's/POS
ruling/NN
may/MD
discourage/VB
private/JJ
funding/NN
./.
``/``
The/DT
unavailability/NN
of/IN
federal/JJ
funds/NNS
,/,
and/CC
the/DT
climate/NN
in/IN
which/WDT
the/DT
decision/NN
was/VBD
made/VBN
,/,
certainly/RB
do/VBP
n't/RB
provide/VB
any/DT
incentive/NN
for/IN
one/CD
of/IN
the/DT
more/RBR
visible/JJ
foundations/NNS
to/TO
provide/VB
support/NN
,/,
''/''
he/PRP
said/VBD
./.
Despite/IN
the/DT
flap/NN
over/IN
transplants/NNS
,/,
federal/JJ
funding/NN
of/IN
research/NN
involving/VBG
fetal/JJ
tissues/NNS
will/MD
continue/VB
on/IN
a/DT
number/NN
of/IN
fronts/NNS
./.
``/``
Such/JJ
research/NN
may/MD
ultimately/RB
result/VB
in/IN
the/DT
ability/NN
to/TO
regenerate/VB
damaged/JJ
tissues/NNS
or/CC
to/TO
turn/VB
off/RP
genes/NNS
that/WDT
cause/VBP
cancer/NN
''/''
or/CC
to/TO
regulate/VB
genes/NNS
that/WDT
cause/VBP
Down/NNP
's/POS
syndrome/NN
,/,
the/DT
leading/VBG
cause/NN
of/IN
mental/JJ
retardation/NN
,/,
according/VBG
to/TO
an/DT
NIH/NNP
summary/NN
./.
The/DT
NIH/NNP
currently/RB
spends/VBZ
about/IN
$/$
8/CD
million/CD
annually/RB
on/IN
fetal-tissue/JJ
research/NN
out/IN
of/IN
a/DT
total/JJ
research/NN
budget/NN
of/IN
$/$
8/CD
billion/CD
./.
Rekindled/VBN
hope/NN
that/IN
two/CD
New/NNP
England/NNP
states/NNS
will/MD
allow/VB
broader/JJR
interstate/JJ
banking/NN
boosted/VBD
Nasdaq/NNP
's/POS
bank/NN
stocks/NNS
,/,
but/CC
the/DT
over-the-counter/JJ
market/NN
was/VBD
up/RB
only/RB
slightly/RB
in/IN
lackluster/JJ
trading/NN
./.
The/DT
Nasdaq/NNP
composite/JJ
index/NN
added/VBD
1.01/CD
to/TO
456.64/CD
on/IN
paltry/JJ
volume/NN
of/IN
118.6/CD
million/CD
shares/NNS
./.
In/IN
terms/NNS
of/IN
volume/NN
,/,
it/PRP
was/VBD
an/DT
inauspicious/JJ
beginning/NN
for/IN
November/NNP
./.
Yesterday/NN
's/POS
share/NN
turnover/NN
was/VBD
well/RB
below/IN
the/DT
year/NN
's/POS
daily/JJ
average/NN
of/IN
133.8/CD
million/CD
./.
In/IN
October/NNP
,/,
the/DT
busiest/JJS
month/NN
of/IN
the/DT
year/NN
so/RB
far/JJ
,/,
daily/JJ
volume/NN
averaged/VBD
roughly/RB
145/CD
million/CD
shares/NNS
./.
The/DT
Nasdaq/NNP
100/CD
index/NN
of/IN
the/DT
biggest/JJS
nonfinancial/JJ
stocks/NNS
gained/VBD
1.39/CD
to/TO
446.62/CD
./.
The/DT
index/NN
of/IN
the/DT
100/CD
largest/JJS
Nasdaq/NNP
financial/JJ
stocks/NNS
rose/VBD
modestly/RB
as/IN
well/RB
,/,
gaining/VBG
1.28/CD
to/TO
449.04/CD
./.
But/CC
the/DT
broader/JJR
Nasdaq/NNP
bank/NN
index/NN
,/,
which/WDT
tracks/VBZ
thrift/NN
issues/NNS
,/,
jumped/VBD
3.23/CD
to/TO
436.01/CD
./.
The/DT
bank/NN
stocks/NNS
got/VBD
a/DT
boost/NN
when/WRB
Connecticut/NNP
Bank/NNP
&/CC
Trust/NNP
and/CC
Bank/NNP
of/IN
New/NNP
England/NNP
said/VBD
they/PRP
no/RB
longer/RB
oppose/VBP
pending/VBG
legislation/NN
that/WDT
would/MD
permit/VB
banks/NNS
from/IN
other/JJ
regions/NNS
to/TO
merge/VB
with/IN
Connecticut/NNP
and/CC
Massachusetts/NNP
banks/NNS
./.
The/DT
two/CD
banks/NNS
merged/VBD
in/IN
1985/CD
./.
Bank/NNP
of/IN
New/NNP
England/NNP
's/POS
shares/NNS
are/VBP
traded/VBN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
The/DT
stocks/NNS
of/IN
banking/VBG
concerns/NNS
based/VBN
in/IN
Massachusetts/NNP
were/VBD
n't/RB
helped/VBN
much/RB
by/IN
the/DT
announcement/NN
,/,
traders/NNS
said/VBD
,/,
because/IN
many/JJ
of/IN
those/DT
concerns/NNS
have/VBP
financial/JJ
problems/NNS
tied/VBN
to/TO
their/PRP$
real-estate/NN
loan/NN
portfolios/NNS
,/,
making/VBG
them/PRP
unattractive/JJ
takeover/NN
targets/NNS
./.
But/CC
speculators/NNS
,/,
anticipating/VBG
that/IN
Connecticut/NNP
will/MD
approve/VB
a/DT
law/NN
permitting/VBG
such/JJ
interstate/JJ
banking/NN
soon/RB
,/,
immediately/RB
bid/VBD
up/RP
shares/NNS
of/IN
Connecticut/NNP
banks/NNS
on/IN
the/DT
news/NN
./.
``/``
A/DT
lot/NN
of/IN
the/DT
stocks/NNS
that/WDT
have/VBP
been/VBN
under/IN
water/NN
finally/RB
saw/VBD
a/DT
reason/NN
to/TO
uptick/VB
,/,
''/''
said/VBD
George/NNP
Jennison/NNP
,/,
head/JJ
trader/NN
of/IN
banking/NN
issues/NNS
in/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
's/POS
OTC/NNP
department/NN
./.
The/DT
biggest/JJS
beneficiary/NN
was/VBD
Northeast/NNP
Bancorp/NNP
,/,
which/WDT
surged/VBD
7/CD
3\/4/CD
to/TO
69/CD
./.
The/DT
Stamford/NNP
,/,
Conn./NNP
,/,
concern/NN
has/VBZ
agreed/VBN
to/TO
a/DT
buy-out/NN
by/IN
Bank/NNP
of/IN
New/NNP
York/NNP
in/IN
a/DT
transaction/NN
with/IN
an/DT
indicated/VBN
value/NN
of/IN
about/IN
$/$
100/CD
a/DT
share/NN
that/WDT
expires/VBZ
next/JJ
August/NNP
./.
Ed/NNP
Macheski/NNP
,/,
a/DT
Wilton/NNP
,/,
Conn./NNP
,/,
money/NN
manager/NN
who/WP
follows/VBZ
bank/NN
stocks/NNS
,/,
said/VBD
the/DT
announcement/NN
effectively/RB
gives/VBZ
the/DT
deal/NN
``/``
the/DT
green/JJ
light/NN
./.
''/''
Mr./NNP
Jennison/NNP
said/VBD
Northeast/NNP
Bancorp/NNP
also/RB
fared/VBD
well/RB
because/IN
takeover/NN
stocks/NNS
have/VBP
returned/VBN
to/TO
favor/VB
among/IN
investors/NNS
./.
Another/DT
OTC/NNP
bank/NN
stock/NN
involved/VBN
in/IN
a/DT
buy-out/NN
deal/NN
,/,
First/NNP
Constitution/NNP
Financial/NNP
,/,
was/VBD
higher/JJR
./.
It/PRP
rose/VBD
7\/8/CD
to/TO
18/CD
1\/4/CD
./.
First/NNP
Constitution/NNP
has/VBZ
signed/VBN
a/DT
merger/NN
agreement/NN
with/IN
WFRR/NNP
L.P./NNP
and/CC
GHKM/NNP
Corp./NNP
,/,
under/IN
which/WDT
all/DT
of/IN
its/PRP$
common/JJ
shares/NNS
will/MD
be/VB
acquired/VBN
for/IN
$/$
25/CD
each/DT
,/,
or/CC
$/$
273.5/CD
million/CD
./.
Among/IN
other/JJ
Connecticut/NNP
banks/NNS
whose/WP$
shares/NNS
trade/VBP
in/IN
the/DT
OTC/NNP
market/NN
,/,
Society/NNP
for/IN
Savings/NNPS
Bancorp/NNP
,/,
based/VBN
in/IN
Hartford/NNP
,/,
saw/VBD
its/PRP$
stock/NN
rise/VB
1/CD
3\/4/CD
to/TO
18/CD
1\/4/CD
./.
Centerbank/NNP
added/VBD
5\/8/CD
to/TO
8/CD
3\/4/CD
;/:
shares/NNS
of/IN
NESB/NNP
,/,
a/DT
New/NNP
London-based/JJ
bank/NN
holding/VBG
company/NN
,/,
rose/VBD
5\/8/CD
to/TO
5/CD
7\/8/CD
./.
Among/IN
other/JJ
banking/NN
issues/NNS
,/,
Pennview/NNP
Savings/NNPS
Association/NNP
leapt/VBD
more/JJR
than/IN
44/CD
%/NN
with/IN
a/DT
gain/NN
of/IN
6/CD
5\/8/CD
to/TO
21/CD
5\/8/CD
./.
The/DT
Pennsylvania/NNP
bank/NN
agreed/VBD
to/TO
be/VB
acquired/VBN
in/IN
a/DT
merger/NN
with/IN
Univest/NNP
Corp./NNP
of/IN
Pennsylvania/NNP
for/IN
$/$
25.50/CD
a/DT
share/NN
./.
Valley/NNP
Federal/NNP
Savings/NNPS
&/CC
Loan/NNP
,/,
a/DT
California/NNP
thrift/NN
issue/NN
,/,
gained/VBD
1/CD
to/TO
4/CD
1\/4/CD
after/IN
reporting/VBG
a/DT
third-quarter/JJ
loss/NN
of/IN
$/$
70.7/CD
million/CD
after/IN
an/DT
$/$
89.9/CD
million/CD
pretax/JJ
charge/NN
mostly/RB
related/JJ
to/TO
its/PRP$
mobile/JJ
home/NN
financing/VBG
unit/NN
./.
Dan/NNP
E./NNP
Nelms/NNP
,/,
Valley/NNP
Federal/NNP
's/POS
president/NN
and/CC
chief/JJ
executive/NN
officer/NN
,/,
said/VBD
the/DT
one-time/JJ
charge/NN
substantially/RB
eliminates/VBZ
future/JJ
losses/NNS
associated/VBN
with/IN
the/DT
unit/NN
./.
He/PRP
said/VBD
the/DT
company/NN
's/POS
core/NN
business/NN
remains/VBZ
strong/JJ
./.
He/PRP
also/RB
said/VBD
that/IN
after/IN
the/DT
charges/NNS
,/,
and/CC
``/``
assuming/VBG
no/DT
dramatic/JJ
fluctuation/NN
in/IN
interest/NN
rates/NNS
,/,
the/DT
company/NN
expects/VBZ
to/TO
achieve/VB
near-record/JJ
earnings/NNS
in/IN
1990/CD
./.
''/''
Weisfield/NNP
's/POS
surged/VBD
6/CD
3\/4/CD
to/TO
55/CD
1\/2/CD
and/CC
Ratners/NNP
Group/NNP
's/POS
American/JJ
depositary/NN
receipts/NNS
,/,
or/CC
ADRs/NNS
,/,
gained/VBD
5\/8/CD
to/TO
12/CD
1\/4/CD
./.
The/DT
two/CD
concerns/NNS
said/VBD
they/PRP
entered/VBD
into/IN
a/DT
definitive/JJ
merger/NN
agreement/NN
under/IN
which/WDT
Ratners/NNP
will/MD
begin/VB
a/DT
tender/NN
offer/NN
for/IN
all/DT
of/IN
Weisfield/NNP
's/POS
common/JJ
shares/NNS
for/IN
$/$
57.50/CD
each/DT
./.
Also/RB
on/IN
the/DT
takeover/NN
front/NN
,/,
Jaguar/NNP
's/POS
ADRs/NNPS
rose/VBD
1\/4/CD
to/TO
13/CD
7\/8/CD
on/IN
turnover/NN
of/IN
4.4/CD
million/CD
./.
Since/IN
the/DT
British/JJ
auto/NN
maker/NN
became/VBD
a/DT
takeover/NN
target/NN
last/JJ
month/NN
,/,
its/PRP$
ADRs/NNS
have/VBP
jumped/VBN
about/IN
78/CD
%/NN
./.
After/IN
troubled/JJ
Heritage/NNP
Media/NNP
proposed/VBD
acquiring/VBG
POP/NNP
Radio/NNP
in/IN
a/DT
stock/NN
swap/NN
,/,
POP/NNP
Radio/NNP
's/POS
shares/NNS
tumbled/VBD
4/CD
to/TO
14/CD
3\/4/CD
./.
Heritage/NNP
Media/NNP
,/,
which/WDT
already/RB
owns/VBZ
about/IN
51/CD
%/NN
of/IN
POP/NNP
Radio/NNP
,/,
proposed/VBD
paying/VBG
POP/NNP
Radio/NNP
shareholders/NNS
with/IN
shares/NNS
of/IN
a/DT
new/JJ
class/NN
of/IN
Heritage/NNP
Media/NNP
preferred/JJ
stock/NN
that/WDT
would/MD
be/VB
convertible/JJ
into/IN
four/CD
shares/NNS
of/IN
Heritage/NNP
Media/NNP
's/POS
common/NN
./.
Rally/NNP
's/POS
lost/VBN
1/CD
3\/4/CD
to/TO
21/CD
3\/4/CD
./.
The/DT
restaurant/NN
operator/NN
said/VBD
it/PRP
has/VBZ
redeemed/VBN
its/PRP$
rights/NNS
issued/VBN
Monday/NNP
under/IN
its/PRP$
shareholder/NN
rights/NNS
plan/NN
./.
The/DT
fast-food/NN
company/NN
said/VBD
its/PRP$
decision/NN
was/VBD
based/VBN
on/IN
discussions/NNS
with/IN
a/DT
shareholder/NN
group/NN
,/,
Giant/NNP
Group/NNP
Ltd./NNP
,/,
``/``
in/IN
an/DT
effort/NN
to/TO
resolve/VB
certain/JJ
disputes/NNS
with/IN
the/DT
company/NN
./.
''/''
Giant/NNP
Group/NNP
is/VBZ
led/VBN
by/IN
three/CD
Rally/NNP
's/POS
directors/NNS
,/,
Burt/NNP
Sugarman/NNP
,/,
James/NNP
M./NNP
Trotter/NNP
III/NNP
and/CC
William/NNP
E./NNP
Trotter/NNP
II/NNP
,/,
who/WP
earlier/RB
this/DT
month/NN
indicated/VBD
they/PRP
had/VBD
a/DT
42.5/CD
%/NN
stake/NN
in/IN
Rally/NNP
's/POS
and/CC
planned/VBD
to/TO
seek/VB
a/DT
majority/NN
of/IN
seats/NNS
on/IN
Rally/NNP
's/POS
nine-member/JJ
board/NN
./.
SCI/NNP
Systems/NNP
slipped/VBD
7\/8/CD
to/TO
10/CD
on/IN
volume/NN
of/IN
858,000/CD
shares/NNS
./.
The/DT
Huntsville/NNP
,/,
Ala./NNP
,/,
electronic/JJ
products/NNS
maker/NN
said/VBD
it/PRP
expects/VBZ
to/TO
post/VB
a/DT
``/``
significant/JJ
''/''
loss/NN
for/IN
its/PRP$
fiscal/JJ
first/JJ
quarter/NN
ended/VBN
Sept./NNP
30/CD
./.
In/IN
the/DT
year-earlier/JJ
period/NN
,/,
SCI/NNP
had/VBD
net/JJ
income/NN
of/IN
$/$
4.8/CD
million/CD
,/,
or/CC
23/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
225.6/CD
million/CD
./.
The/DT
Internal/NNP
Revenue/NNP
Service/NNP
has/VBZ
threatened/VBN
criminal/JJ
sanctions/NNS
against/IN
lawyers/NNS
who/WP
fail/VBP
to/TO
report/VB
detailed/JJ
information/NN
about/IN
clients/NNS
who/WP
pay/VBP
them/PRP
more/JJR
than/IN
$/$
10,000/CD
in/IN
cash/NN
./.
The/DT
warnings/NNS
,/,
issued/VBN
to/TO
at/IN
least/JJS
100/CD
criminal/NN
defense/NN
attorneys/NNS
in/IN
several/JJ
major/JJ
cities/NNS
in/IN
the/DT
last/JJ
week/NN
,/,
have/VBP
led/VBN
to/TO
an/DT
outcry/NN
by/IN
members/NNS
of/IN
the/DT
organized/JJ
bar/NN
,/,
who/WP
claim/VBP
the/DT
information/NN
is/VBZ
protected/VBN
by/IN
attorney-client/JJ
privilege/NN
./.
The/DT
IRS/NNP
warnings/NNS
stem/VBP
from/IN
a/DT
1984/CD
law/NN
that/WDT
requires/VBZ
anyone/NN
who/WP
receives/VBZ
more/JJR
than/IN
$/$
10,000/CD
in/IN
cash/NN
from/IN
a/DT
client/NN
or/CC
customer/NN
in/IN
one/CD
or/CC
more/JJR
related/JJ
transactions/NNS
``/``
in/IN
the/DT
course/NN
of/IN
trade/NN
or/CC
business/NN
''/''
to/TO
report/VB
the/DT
payment/NN
on/IN
a/DT
document/NN
known/VBN
as/IN
Form/NN
8300/CD
./.
The/DT
form/NN
asks/VBZ
for/IN
such/JJ
details/NNS
as/IN
the/DT
client/NN
's/POS
name/NN
,/,
Social/NNP
Security/NNP
number/NN
,/,
passport/NN
number/NN
and/CC
details/NNS
about/IN
the/DT
services/NNS
provided/VBN
for/IN
the/DT
payment/NN
./.
Failure/NN
to/TO
complete/VB
the/DT
form/NN
had/VBD
been/VBN
punishable/JJ
as/IN
a/DT
misdemeanor/NN
until/IN
last/JJ
November/NNP
,/,
when/WRB
Congress/NNP
determined/VBD
that/IN
the/DT
crime/NN
was/VBD
a/DT
felony/NN
punishable/JJ
by/IN
up/IN
to/TO
10/CD
years/NNS
in/IN
prison/NN
./.
Attorneys/NNS
have/VBP
argued/VBN
since/IN
1985/CD
,/,
when/WRB
the/DT
law/NN
took/VBD
effect/NN
,/,
that/IN
they/PRP
can/MD
not/RB
provide/VB
information/NN
about/IN
clients/NNS
who/WP
do/VBP
n't/RB
wish/VB
their/PRP$
identities/NNS
to/TO
be/VB
known/VBN
./.
Many/JJ
attorneys/NNS
have/VBP
returned/VBN
incomplete/JJ
forms/NNS
to/TO
the/DT
IRS/NNP
in/IN
recent/JJ
years/NNS
,/,
citing/VBG
attorney-client/JJ
privilege/NN
./.
Until/IN
last/JJ
week/NN
,/,
the/DT
IRS/NNP
rarely/RB
acted/VBD
on/IN
the/DT
incomplete/JJ
forms/NNS
./.
``/``
This/DT
form/NN
forces/VBZ
a/DT
lawyer/NN
to/TO
become/VB
,/,
in/IN
effect/NN
,/,
a/DT
witness/NN
against/IN
his/PRP$
client/NN
,/,
''/''
said/VBD
Neal/NNP
R./NNP
Sonnett/NNP
,/,
president/NN
of/IN
the/DT
National/NNP
Association/NNP
of/IN
Criminal/NNP
Defense/NNP
Lawyers/NNPS
./.
``/``
The/DT
IRS/NNP
is/VBZ
asking/VBG
lawyers/NNS
to/TO
red-flag/VB
a/DT
criminal/JJ
problem/NN
to/TO
the/DT
government/NN
,/,
''/''
added/VBD
Mr./NNP
Sonnett/NNP
,/,
a/DT
Miami/NNP
lawyer/NN
who/WP
has/VBZ
heard/VBN
from/IN
dozens/NNS
of/IN
attorneys/NNS
who/WP
received/VBD
letters/NNS
in/IN
recent/JJ
days/NNS
and/CC
has/VBZ
himself/PRP
received/VBD
the/DT
computer-generated/JJ
IRS/NNP
forms/NNS
sent/VBN
by/IN
certified/JJ
mail/NN
./.
Mr./NNP
Sonnett/NNP
said/VBD
that/IN
clients/NNS
who/WP
pay/VBP
cash/NN
may/MD
include/VB
alleged/VBN
drug/NN
dealers/NNS
who/WP
do/VBP
n't/RB
have/VB
domestic/JJ
bank/NN
accounts/NNS
./.
These/DT
individuals/NNS
may/MD
not/RB
necessarily/RB
be/VB
under/IN
investigation/NN
when/WRB
they/PRP
hire/VBP
lawyers/NNS
./.
Mr./NNP
Sonnett/NNP
said/VBD
there/EX
also/RB
may/MD
be/VB
other/JJ
circumstances/NNS
under/IN
which/WDT
individuals/NNS
would/MD
n't/RB
want/VB
the/DT
government/NN
to/TO
know/VB
they/PRP
had/VBD
retained/VBN
criminal/JJ
defense/NN
lawyers/NNS
./.
Filling/VBG
out/RP
detailed/JJ
forms/NNS
about/IN
these/DT
individuals/NNS
would/MD
tip/VB
the/DT
IRS/NNP
off/RP
and/CC
spark/VB
action/NN
against/IN
the/DT
clients/NNS
,/,
he/PRP
said/VBD
./.
The/DT
defense/NN
lawyers/NNS
'/POS
group/NN
formed/VBD
a/DT
task/NN
force/NN
this/DT
week/NN
,/,
chaired/VBN
by/IN
New/NNP
York/NNP
attorney/NN
Gerald/NNP
Lefcourt/NNP
,/,
to/TO
deal/VB
with/IN
the/DT
matter/NN
./.
The/DT
American/NNP
Bar/NNP
Association/NNP
's/POS
House/NNP
of/IN
Delegates/NNPS
passed/VBD
a/DT
resolution/NN
in/IN
1985/CD
condemning/VBG
the/DT
IRS/NNP
reporting/NN
requirement/NN
./.
Michael/NNP
Ross/NNP
,/,
a/DT
New/NNP
York/NNP
lawyer/NN
who/WP
heads/VBZ
the/DT
ABA/NNP
's/POS
grand/JJ
jury/NN
committee/NN
,/,
said/VBD
that/IN
lawyers/NNS
are/VBP
prohibited/VBN
by/IN
the/DT
ABA/NNP
's/POS
code/NN
of/IN
ethics/NNS
from/IN
disclosing/VBG
information/NN
about/IN
a/DT
client/NN
except/IN
where/WRB
a/DT
court/NN
orders/VBZ
it/PRP
or/CC
to/TO
prevent/VB
the/DT
client/NN
from/IN
committing/VBG
a/DT
criminal/JJ
act/NN
that/WDT
could/MD
result/VB
in/IN
death/NN
./.
Mr./NNP
Ross/NNP
said/VBD
he/PRP
met/VBD
with/IN
officials/NNS
of/IN
the/DT
IRS/NNP
and/CC
the/DT
Justice/NNP
Department/NNP
,/,
which/WDT
would/MD
bring/VB
any/DT
enforcement/NN
actions/NNS
against/IN
taxpayers/NNS
,/,
to/TO
discuss/VB
the/DT
issue/NN
last/JJ
May/NNP
./.
At/IN
that/DT
meeting/NN
,/,
he/PRP
said/VBD
,/,
the/DT
Justice/NNP
Department/NNP
assured/VBD
him/PRP
that/IN
enforcement/NN
procedures/NNS
would/MD
n't/RB
be/VB
threatened/VBN
against/IN
attorneys/NNS
without/IN
further/JJ
review/NN
and/CC
advance/NN
notice/NN
./.
Mr./NNP
Ross/NNP
said/VBD
IRS/NNP
officials/NNS
opposed/VBD
the/DT
Justice/NNP
Department/NNP
's/POS
moderate/JJ
stance/NN
on/IN
the/DT
matter/NN
./.
But/CC
in/IN
the/DT
letters/NNS
sent/VBN
in/IN
recent/JJ
days/NNS
,/,
Christopher/NNP
J./NNP
Lezovich/NNP
of/IN
the/DT
IRS/NNP
computing/NN
center/NN
in/IN
Detroit/NNP
,/,
told/VBD
attorneys/NNS
that/IN
``/``
failing/VBG
to/TO
voluntarily/RB
submit/VB
the/DT
requested/VBN
information/NN
could/MD
result/VB
in/IN
summons/NN
enforcement/NN
action/NN
being/VBG
initiated/VBN
./.
''/''
In/IN
some/DT
cases/NNS
,/,
the/DT
IRS/NNP
asked/VBD
for/IN
information/NN
dating/VBG
back/RB
to/TO
forms/NNS
it/PRP
received/VBD
in/IN
1985/CD
./.
A/DT
spokesman/NN
for/IN
the/DT
IRS/NNP
confirmed/VBD
that/IN
``/``
there/EX
has/VBZ
been/VBN
correspondence/NN
mailed/VBN
about/IN
incomplete/JJ
8300s/NNS
,/,
''/''
but/CC
he/PRP
declined/VBD
to/TO
say/VB
why/WRB
the/DT
letters/NNS
were/VBD
sent/VBN
to/TO
lawyers/NNS
now/RB
./.
Individuals/NNS
familiar/JJ
with/IN
the/DT
Justice/NNP
Department/NNP
's/POS
policy/NN
said/VBD
that/IN
Justice/JJ
officials/NNS
had/VBD
n't/RB
any/DT
knowledge/NN
of/IN
the/DT
IRS/NNP
's/POS
actions/NNS
in/IN
the/DT
last/JJ
week/NN
./.
Lawyers/NNS
worry/VBP
that/IN
if/IN
they/PRP
provide/VBP
information/NN
about/IN
clients/NNS
,/,
that/DT
data/NN
could/MD
quickly/RB
end/VB
up/RB
in/IN
the/DT
hands/NNS
of/IN
prosecutors/NNS
./.
Prosecutors/NNS
need/VBP
court/NN
permission/NN
to/TO
obtain/VB
the/DT
tax/NN
returns/NNS
of/IN
an/DT
individual/NN
or/CC
a/DT
business/NN
./.
But/CC
they/PRP
have/VBP
obtained/VBN
8300/JJ
forms/NNS
without/IN
court/NN
permission/NN
and/CC
used/VBD
the/DT
information/NN
to/TO
help/VB
develop/VB
criminal/JJ
cases/NNS
./.
Some/DT
criminal/JJ
lawyers/NNS
speculated/VBD
that/IN
the/DT
IRS/NNP
was/VBD
sending/VBG
the/DT
letters/NNS
to/TO
test/VB
the/DT
issue/NN
./.
In/IN
a/DT
number/NN
of/IN
recent/JJ
cases/NNS
,/,
federal/JJ
courts/NNS
have/VBP
refused/VBN
to/TO
recognize/VB
attorneys/NNS
'/POS
assertions/NNS
that/IN
information/NN
relating/VBG
to/TO
fees/NNS
from/IN
clients/NNS
should/MD
be/VB
confidential/JJ
./.
THE/DT
WAR/NN
OVER/IN
FEDERAL/JJ
JUDICIAL/JJ
SALARIES/NNS
takes/VBZ
a/DT
victim/NN
./.
Often/RB
,/,
judges/NNS
ease/VBP
into/IN
more/RBR
lucrative/JJ
private/JJ
practice/NN
with/IN
little/JJ
fanfare/NN
,/,
but/CC
not/RB
federal/JJ
Judge/NNP
Raul/NNP
A./NN
Ramirez/NNP
in/IN
Sacramento/NNP
,/,
Calif/NNP
./.
On/IN
Tuesday/NNP
,/,
the/DT
judge/NN
called/VBD
a/DT
news/NN
conference/NN
to/TO
say/VB
he/PRP
was/VBD
quitting/VBG
effective/JJ
Dec./NN
31/CD
to/TO
join/VB
a/DT
San/NNP
Francisco/NNP
law/NN
firm/NN
./.
The/DT
reason/NN
:/:
the/DT
refusal/NN
of/IN
Congress/NNP
to/TO
give/VB
federal/JJ
judges/NNS
a/DT
raise/NN
./.
``/``
A/DT
couple/NN
of/IN
my/PRP$
law/NN
clerks/NNS
were/VBD
going/VBG
to/TO
pass/VB
me/PRP
in/IN
three/CD
or/CC
four/CD
years/NNS
,/,
and/CC
I/PRP
was/VBD
afraid/JJ
I/PRP
was/VBD
going/VBG
to/TO
have/VB
to/TO
ask/VB
them/PRP
for/IN
a/DT
loan/NN
,/,
''/''
the/DT
judge/NN
quipped/VBD
in/IN
an/DT
interview/NN
./.
Federal/JJ
judges/NNS
make/VBP
$/$
89,500/CD
annually/RB
;/:
in/IN
February/NNP
,/,
Congress/NNP
rejected/VBD
a/DT
bill/NN
that/WDT
would/MD
have/VB
increased/VBN
their/PRP$
pay/NN
by/IN
50/CD
%/NN
./.
Judge/NNP
Ramirez/NNP
,/,
44/CD
,/,
said/VBD
it/PRP
is/VBZ
unjust/JJ
for/IN
judges/NNS
to/TO
make/VB
what/WP
they/PRP
do/VBP
./.
``/``
Judges/NNS
are/VBP
not/RB
getting/VBG
what/WP
they/PRP
deserve/VBP
./.
You/PRP
look/VBP
around/IN
at/IN
professional/JJ
ballplayers/NNS
or/CC
accountants/NNS
.../:
and/CC
nobody/NN
blinks/VBZ
an/DT
eye/NN
./.
When/WRB
you/PRP
become/VBP
a/DT
federal/JJ
judge/NN
,/,
all/DT
of/IN
a/DT
sudden/JJ
you/PRP
are/VBP
relegated/VBN
to/TO
a/DT
paltry/JJ
sum/NN
./.
''/''
At/IN
his/PRP$
new/JJ
job/NN
,/,
as/IN
partner/NN
in/IN
charge/NN
of/IN
federal/JJ
litigation/NN
in/IN
the/DT
Sacramento/NNP
office/NN
of/IN
Orrick/NNP
,/,
Herrington/NNP
&/CC
Sutcliffe/NNP
,/,
he/PRP
will/MD
make/VB
out/RP
much/RB
better/RBR
./.
The/DT
judge/NN
declined/VBD
to/TO
discuss/VB
his/PRP$
salary/NN
in/IN
detail/NN
,/,
but/CC
said/VBD
:/:
``/``
I/PRP
'm/VBP
going/VBG
to/TO
be/VB
a/DT
high-priced/JJ
lawyer/NN
./.
''/''
DOONESBURY/NNP
CREATOR'S/NN
UNION/NN
TROUBLES/NNS
are/VBP
no/DT
laughing/JJ
matter/NN
./.
Cartoonist/NN
Garry/NNP
Trudeau/NNP
is/VBZ
suing/VBG
the/DT
Writers/NNPS
Guild/NNP
of/IN
America/NNP
East/NNP
for/IN
$/$
11/CD
million/CD
,/,
alleging/VBG
it/PRP
mounted/VBD
a/DT
``/``
campaign/NN
to/TO
harass/VB
and/CC
punish/VB
''/''
him/PRP
for/IN
crossing/VBG
a/DT
screenwriters/NNS
'/POS
picket/NN
line/NN
./.
The/DT
dispute/NN
involves/VBZ
Darkhorse/NNP
Productions/NNPS
Inc./NNP
,/,
a/DT
TV/NN
production/NN
company/NN
in/IN
which/WDT
Mr./NNP
Trudeau/NNP
is/VBZ
a/DT
co-owner/NN
./.
Mr./NNP
Trudeau/NNP
,/,
a/DT
Writers/NNPS
Guild/NNP
member/NN
,/,
also/RB
was/VBD
employed/VBN
as/IN
a/DT
writer/NN
for/IN
Darkhorse/NNP
,/,
which/WDT
was/VBD
covered/VBN
by/IN
a/DT
guild/NN
collective-bargaining/JJ
agreement/NN
./.
The/DT
guild/NN
began/VBD
a/DT
strike/NN
against/IN
the/DT
TV/NN
and/CC
movie/NN
industry/NN
in/IN
March/NNP
1988/CD
./.
In/IN
his/PRP$
lawsuit/NN
,/,
Mr./NNP
Trudeau/NNP
says/VBZ
the/DT
strike/NN
illegally/RB
included/VBD
Darkhorse/NNP
,/,
and/CC
the/DT
cartoonist/NN
refused/VBD
to/TO
honor/VB
the/DT
strike/NN
against/IN
the/DT
company/NN
./.
A/DT
spokesman/NN
for/IN
the/DT
guild/NN
said/VBD
the/DT
union/NN
's/POS
lawyers/NNS
are/VBP
reviewing/VBG
the/DT
suit/NN
./.
He/PRP
said/VBD
disciplinary/JJ
proceedings/NNS
are/VBP
confidential/JJ
and/CC
declined/VBD
to/TO
comment/VB
on/IN
whether/IN
any/DT
are/VBP
being/VBG
held/VBN
against/IN
Mr./NNP
Trudeau/NNP
./.
Mr./NNP
Trudeau/NNP
's/POS
attorney/NN
,/,
Norman/NNP
K./NNP
Samnick/NNP
,/,
said/VBD
the/DT
harassment/NN
consists/VBZ
mainly/RB
of/IN
the/DT
guild/NN
's/POS
year-long/JJ
threats/NNS
of/IN
disciplinary/JJ
action/NN
./.
Mr./NNP
Samnick/NNP
said/VBD
a/DT
guild/NN
disciplinary/JJ
hearing/NN
is/VBZ
scheduled/VBN
next/IN
Monday/NNP
in/IN
New/NNP
York/NNP
./.
Mr./NNP
Samnick/NNP
,/,
who/WP
will/MD
go/VB
before/IN
the/DT
disciplinary/JJ
panel/NN
,/,
said/VBD
the/DT
proceedings/NNS
are/VBP
unfair/JJ
and/CC
that/IN
any/DT
punishment/NN
from/IN
the/DT
guild/NN
would/MD
be/VB
unjustified/JJ
./.
In/IN
addition/NN
to/TO
the/DT
damages/NNS
,/,
the/DT
suit/NN
seeks/VBZ
a/DT
court/NN
order/NN
preventing/VBG
the/DT
guild/NN
from/IN
punishing/VBG
or/CC
retaliating/VBG
against/IN
Mr./NNP
Trudeau/NNP
./.
ABORTION/NN
RULING/NN
UPHELD/VBN
:/:
A/DT
federal/JJ
appeals/NNS
court/NN
upheld/VBD
a/DT
lower/JJR
court/NN
ruling/NN
that/IN
the/DT
U.S./NNP
can/MD
bar/VB
the/DT
use/NN
of/IN
federal/JJ
funds/NNS
for/IN
family-planning/JJ
programs/NNS
that/WDT
include/VBP
abortion-related/JJ
services/NNS
./.
A/DT
Department/NNP
of/IN
Health/NNP
and/CC
Human/NNP
Services/NNPS
rule/NN
adopted/VBN
in/IN
1988/CD
prohibits/VBZ
the/DT
use/NN
of/IN
so-called/JJ
Title/NN
X/NNP
funds/NNS
for/IN
programs/NNS
that/WDT
assist/VBP
a/DT
woman/NN
in/IN
obtaining/VBG
an/DT
abortion/NN
,/,
such/JJ
as/IN
abortion/NN
counseling/NN
and/CC
referrals/NNS
./.
The/DT
rule/NN
also/RB
prohibits/VBZ
funding/NN
for/IN
activities/NNS
that/WDT
``/``
encourage/VBP
,/,
promote/VBP
or/CC
advocate/VBP
abortion/NN
./.
''/''
Title/NN
X/NNP
funds/NNS
are/VBP
the/DT
single/JJ
largest/JJS
source/NN
of/IN
federal/JJ
funding/NN
for/IN
family-planning/JJ
services/NNS
,/,
according/VBG
to/TO
the/DT
opinion/NN
by/IN
the/DT
Second/NNP
U.S./NNP
Circuit/NNP
Court/NNP
of/IN
Appeals/NNPS
in/IN
New/NNP
York/NNP
./.
The/DT
panel/NN
ruled/VBD
that/IN
the/DT
restrictions/NNS
do/VBP
n't/RB
violate/VB
the/DT
freedom/NN
of/IN
speech/NN
of/IN
health/NN
care/NN
providers/NNS
and/CC
that/IN
the/DT
limits/NNS
on/IN
counseling/NN
services/NNS
do/VBP
n't/RB
violate/VB
the/DT
rights/NNS
of/IN
pregnant/JJ
women/NNS
./.
INQUIRY/NN
CLEARS/VBZ
TEXAS/NNP
JUDGE/NN
of/IN
bias/NN
in/IN
comments/NNS
on/IN
homosexual/JJ
murder/NN
victims/NNS
./.
Dallas/NNP
District/NNP
Judge/NNP
Jack/NNP
Hampton/NNP
had/VBD
sparked/VBN
calls/NNS
for/IN
a/DT
judicial/JJ
inquiry/NN
with/IN
his/PRP$
remarks/NNS
to/TO
the/DT
press/NN
last/JJ
December/NNP
,/,
two/CD
weeks/NNS
after/IN
sentencing/VBG
an/DT
18-year-old/JJ
defendant/NN
to/TO
30/CD
years/NNS
in/IN
state/NN
prison/NN
for/IN
killing/VBG
two/CD
homosexual/JJ
men/NNS
in/IN
a/DT
city/NN
park/NN
./.
The/DT
judge/NN
was/VBD
quoted/VBN
as/IN
referring/VBG
to/TO
the/DT
victims/NNS
as/IN
``/``
queers/NNS
''/''
and/CC
saying/VBG
they/PRP
would/MD
n't/RB
have/VB
been/VBN
killed/VBN
``/``
if/IN
they/PRP
had/VBD
n't/RB
been/VBN
cruising/VBG
the/DT
streets/NNS
picking/VBG
up/RP
teenage/JJ
boys/NNS
./.
''/''
But/CC
Robert/NNP
R./NNP
Murray/NNP
,/,
a/DT
special/JJ
master/NN
appointed/VBN
by/IN
the/DT
Texas/NNP
Supreme/NNP
Court/NNP
,/,
said/VBD
Judge/NNP
Hampton/NNP
did/VBD
n't/RB
breach/VB
any/DT
judicial/JJ
standards/NNS
of/IN
fairness/NN
,/,
although/IN
he/PRP
did/VBD
violate/VB
the/DT
state/NN
's/POS
judicial/JJ
code/NN
by/IN
commenting/VBG
publicly/RB
on/IN
a/DT
pending/VBG
case/NN
./.
Observing/VBG
that/IN
the/DT
judge/NN
``/``
has/VBZ
never/RB
exhibited/VBN
any/DT
bias/NN
or/CC
prejudice/NN
,/,
''/''
Mr./NNP
Murray/NNP
concluded/VBD
that/IN
he/PRP
``/``
would/MD
be/VB
impartial/JJ
in/IN
any/DT
case/NN
involving/VBG
a/DT
homosexual/NN
or/CC
prostitute/NN
''/''
as/IN
a/DT
victim/NN
./.
Mr./NNP
Murray/NNP
also/RB
said/VBD
Judge/NNP
Hampton/NNP
's/POS
comments/NNS
did/VBD
n't/RB
discredit/VB
the/DT
judiciary/NN
or/CC
the/DT
administration/NN
of/IN
justice/NN
./.
The/DT
report/NN
is/VBZ
subject/JJ
to/TO
review/VB
by/IN
the/DT
State/NNP
Commission/NNP
on/IN
Judicial/NNP
Conduct/NNP
,/,
which/WDT
is/VBZ
empowered/VBN
to/TO
impose/VB
sanctions/NNS
./.
GAF/NNP
TRIAL/NN
goes/VBZ
to/TO
round/NN
three/CD
./.
Attorneys/NNS
in/IN
the/DT
third/JJ
stock-manipulation/JJ
trial/NN
of/IN
GAF/NNP
Corp./NNP
began/VBD
opening/VBG
arguments/NNS
yesterday/NN
in/IN
the/DT
Manhattan/NNP
courtroom/NN
of/IN
U.S./NNP
District/NNP
Judge/NNP
Mary/NNP
Johnson/NNP
Lowe/NNP
./.
In/IN
an/DT
eight-count/JJ
indictment/NN
,/,
the/DT
government/NN
has/VBZ
charged/VBN
GAF/NNP
,/,
a/DT
Wayne/NNP
,/,
N.J./NNP
,/,
specialty/NN
chemical/NN
maker/NN
,/,
and/CC
its/PRP$
Vice/NNP
Chairman/NNP
James/NNP
T./NNP
Sherwin/NNP
with/IN
attempting/VBG
to/TO
manipulate/VB
the/DT
common/JJ
stock/NN
of/IN
Union/NNP
Carbide/NNP
Corp./NNP
in/IN
advance/NN
of/IN
GAF/NNP
's/POS
planned/JJ
sale/NN
of/IN
a/DT
large/JJ
block/NN
of/IN
the/DT
stock/NN
in/IN
November/NNP
1986/CD
./.
The/DT
first/JJ
two/CD
GAF/NNP
trials/NNS
ended/VBD
in/IN
mistrials/NNS
earlier/RBR
this/DT
year/NN
./.
This/DT
trial/NN
is/VBZ
expected/VBN
to/TO
last/VB
five/CD
weeks/NNS
./.
SWITCHING/VBG
TO/TO
THE/DT
DEFENSE/NN
:/:
A/DT
former/JJ
member/NN
of/IN
the/DT
prosecution/NN
team/NN
in/IN
the/DT
Iran\/Contra/NNP
affair/NN
joined/VBD
the/DT
Chicago/NNP
firm/NN
of/IN
Mayer/NNP
,/,
Brown/NNP
&/CC
Platt/NNP
./.
Michael/NNP
R./NNP
Bromwich/NNP
,/,
a/DT
member/NN
since/IN
January/NNP
1987/CD
of/IN
the/DT
three-lawyer/JJ
trial/NN
team/NN
in/IN
the/DT
prosecution/NN
of/IN
Oliver/NNP
North/NNP
,/,
became/VBD
a/DT
partner/NN
in/IN
the/DT
Washington/NNP
,/,
D.C./NNP
,/,
office/NN
of/IN
the/DT
520-lawyer/JJ
firm/NN
./.
He/PRP
will/MD
specialize/VB
in/IN
white-collar/JJ
criminal/NN
defense/NN
work/NN
./.
Mr./NNP
Bromwich/NNP
,/,
35/CD
,/,
also/RB
has/VBZ
served/VBN
as/IN
deputy/NN
chief/NN
and/CC
chief/NN
of/IN
the/DT
narcotics/NNS
unit/NN
for/IN
the/DT
U.S./NNP
attorney/NN
's/POS
office/NN
for/IN
the/DT
Southern/NNP
District/NNP
of/IN
New/NNP
York/NNP
,/,
based/VBN
in/IN
Manhattan/NNP
./.
Cooper/NNP
Tire/NNP
&/SYM
Rubber/NNP
Co./NNP
said/VBD
it/PRP
has/VBZ
reached/VBN
an/DT
agreement/NN
in/IN
principle/NN
to/TO
buy/VB
buildings/NNS
and/CC
related/JJ
property/NN
in/IN
Albany/NNP
,/,
Ga./NNP
,/,
from/IN
Bridgestone\/Firestone/NNP
Inc/NNP
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
The/DT
tire/NN
maker/NN
said/VBD
the/DT
buildings/NNS
consist/VBP
of/IN
1.8/CD
million/CD
square/JJ
feet/NNS
of/IN
office/NN
,/,
manufacturing/NN
and/CC
warehousing/NN
space/NN
on/IN
353/CD
acres/NNS
of/IN
land/NN
./.
Fujitsu/NNP
Ltd./NNP
's/POS
top/JJ
executive/NN
took/VBD
the/DT
unusual/JJ
step/NN
of/IN
publicly/RB
apologizing/VBG
for/IN
his/PRP$
company/NN
's/POS
making/VBG
bids/NNS
of/IN
just/RB
one/CD
yen/NN
for/IN
several/JJ
local/JJ
government/NN
projects/NNS
,/,
while/IN
computer/NN
rival/NN
NEC/NNP
Corp./NNP
made/VBD
a/DT
written/VBN
apology/NN
for/IN
indulging/VBG
in/IN
the/DT
same/JJ
practice/NN
./.
Meanwhile/RB
,/,
business/NN
and/CC
government/NN
leaders/NNS
rebuked/VBD
the/DT
computer/NN
makers/NNS
,/,
and/CC
fretted/VBD
about/IN
the/DT
broader/JJR
statement/NN
the/DT
companies/NNS
'/POS
actions/NNS
make/VBP
about/IN
Japanese/JJ
cutthroat/JJ
pricing/NN
./.
Fujitsu/NNP
said/VBD
it/PRP
bid/VBD
the/DT
equivalent/NN
of/IN
less/JJR
than/IN
a/DT
U.S./NNP
penny/NN
on/IN
three/CD
separate/JJ
municipal/JJ
contracts/NNS
during/IN
the/DT
past/JJ
two/CD
years/NNS
./.
The/DT
company/NN
also/RB
disclosed/VBD
that/IN
during/IN
that/DT
period/NN
it/PRP
offered/VBD
10,000/CD
yen/NNS
,/,
or/CC
about/RB
$/$
70/CD
,/,
for/IN
another/DT
contract/NN
./.
But/CC
Fujitsu/NNP
,/,
Japan/NNP
's/POS
No./NN
1/CD
computer/NN
maker/NN
,/,
is/VBZ
n't/RB
alone/RB
./.
NEC/NNP
,/,
one/CD
of/IN
its/PRP$
largest/JJS
domestic/JJ
competitors/NNS
,/,
said/VBD
it/PRP
bid/VBD
one/CD
yen/NN
in/IN
two/CD
separate/JJ
public/JJ
auctions/NNS
since/IN
1987/CD
./.
In/IN
both/DT
cases/NNS
,/,
NEC/NNP
lost/VBD
the/DT
contract/NN
to/TO
Fujitsu/NNP
,/,
which/WDT
made/VBD
the/DT
same/JJ
bid/NN
and/CC
won/VBD
a/DT
tie-breaking/JJ
lottery/NN
./.
All/DT
the/DT
contracts/NNS
were/VBD
for/IN
computer-system-design/JJ
contracts/NNS
and/CC
involved/VBD
no/DT
hardware/NN
or/CC
software/NN
./.
The/DT
Ministry/NNP
of/IN
International/NNP
Trade/NNP
and/CC
Industry/NNP
summoned/VBD
executives/NNS
from/IN
the/DT
companies/NNS
to/TO
``/``
make/VB
sure/JJ
they/PRP
understood/VBD
''/''
the/DT
concern/NN
about/IN
such/JJ
practices/NNS
,/,
according/VBG
to/TO
a/DT
government/NN
spokesman/NN
./.
``/``
These/DT
cases/NNS
lead/VBP
to/TO
the/DT
loss/NN
of/IN
the/DT
firms/NNS
'/POS
social/JJ
and/CC
international/JJ
credibility/NN
,/,
''/''
a/DT
ministry/NN
statement/NN
said/VBD
./.
Japan/NNP
's/POS
Fair/NNP
Trade/NNP
Commission/NNP
has/VBZ
said/VBD
it/PRP
is/VBZ
considering/VBG
investigating/VBG
the/DT
bids/NNS
for/IN
possible/JJ
antitrust-law/JJ
violations/NNS
./.
``/``
We/PRP
would/MD
like/VB
to/TO
apologize/VB
for/IN
having/VBG
caused/VBN
huge/JJ
trouble/NN
,/,
''/''
Fujitsu/NNP
President/NNP
Takuma/NNP
Yamamoto/NNP
,/,
read/VBD
from/IN
a/DT
prepared/VBN
statement/NN
as/IN
he/PRP
stood/VBD
before/IN
a/DT
packed/JJ
news/NN
conference/NN
at/IN
his/PRP$
company/NN
's/POS
downtown/NN
headquarters/NN
./.
The/DT
bids/NNS
,/,
he/PRP
added/VBD
,/,
were/VBD
``/``
contrary/JJ
to/TO
common/JJ
sense/NN
./.
''/''
NEC/NNP
released/VBD
a/DT
statement/NN
saying/VBG
,/,
``/``
We/PRP
feel/VBP
sorry/JJ
for/IN
having/VBG
caused/VBN
trouble/NN
to/TO
society/NN
,/,
''/''
a/DT
form/NN
of/IN
apology/NN
common/JJ
in/IN
Japan/NNP
for/IN
companies/NNS
caught/VBN
in/IN
embarrassing/JJ
situations/NNS
./.
Japanese/JJ
companies/NNS
have/VBP
long/RB
had/VBD
a/DT
reputation/NN
for/IN
sacrificing/VBG
short-term/JJ
profits/NNS
to/TO
make/VB
a/DT
sale/NN
that/WDT
may/MD
have/VB
long-term/JJ
benefits/NNS
./.
But/CC
the/DT
growing/VBG
controversy/NN
comes/VBZ
as/IN
many/JJ
practices/NNS
historically/RB
accepted/VBN
as/IN
normal/JJ
here/RB
--/:
such/JJ
as/IN
politicians/NNS
accepting/VBG
substantial/JJ
gifts/NNS
from/IN
businessmen/NNS
or/CC
having/VBG
extramarital/JJ
affairs/NNS
--/:
are/IN
coming/VBG
under/IN
close/JJ
ethical/JJ
scrutiny/NN
./.
The/DT
fire/NN
is/VBZ
also/RB
fueled/VBN
by/IN
growing/JJ
international/JJ
interest/NN
in/IN
Japanese/JJ
behavior/NN
./.
So/RB
far/RB
there/EX
have/VBP
been/VBN
no/DT
public/JJ
overseas/JJ
complaints/NNS
about/IN
the/DT
issue/NN
./.
But/CC
in/IN
one/CD
of/IN
the/DT
auctions/NNS
in/IN
question/NN
,/,
International/NNP
Business/NNP
Machines/NNP
Corp./NNP
made/VBD
a/DT
bid/NN
substantially/RB
higher/JJR
than/IN
the/DT
Fujitsu/NNP
offer/NN
,/,
according/VBG
to/TO
the/DT
municipality/NN
./.
The/DT
low-ball/JJ
bids/NNS
touch/VBP
on/IN
issues/NNS
central/JJ
to/TO
the/DT
increasingly/RB
tense/JJ
trade/NN
debate/NN
./.
Foreigners/NNS
complain/VBP
that/IN
they/PRP
have/VBP
limited/JJ
access/NN
to/TO
government/NN
procurement/NN
in/IN
Japan/NNP
,/,
in/IN
part/NN
because/IN
Japanese/JJ
companies/NNS
unfairly/RB
undercut/VBP
them/PRP
./.
The/DT
U.S./NNP
government/NN
in/IN
recent/JJ
years/NNS
has/VBZ
accused/VBN
Japanese/JJ
companies/NNS
of/IN
excessively/RB
slashing/VBG
prices/NNS
on/IN
semiconductors/NNS
and/CC
supercomputers/NNS
--/:
products/NNS
Fujitsu/NNP
and/CC
NEC/NNP
make/VBP
./.
Asked/VBD
whether/IN
the/DT
bidding/NN
flap/NN
would/MD
hurt/VB
U.S.-Japan/JJ
relations/NNS
,/,
Mr./NNP
Yamamoto/NNP
said/VBD
,/,
``/``
this/DT
will/MD
be/VB
a/DT
minus/NN
factor/NN
./.
''/''
The/DT
``/``
one-yen/JJ
''/''
controversy/NN
first/RB
came/VBD
to/TO
a/DT
head/NN
last/JJ
week/NN
when/WRB
the/DT
city/NN
of/IN
Hiroshima/NNP
announced/VBD
that/IN
Fujitsu/NNP
won/VBD
a/DT
contract/NN
to/TO
design/VB
a/DT
computer/NN
system/NN
to/TO
map/VB
its/PRP$
waterworks/NN
./.
The/DT
city/NN
had/VBD
expected/VBN
to/TO
pay/VB
about/RB
11/CD
million/CD
yen/NNS
$/$
77,000/CD
Fujitsu/NNP
essentially/RB
offered/VBD
to/TO
do/VB
it/PRP
for/IN
free/RB
./.
Then/RB
Wednesday/NNP
,/,
Fujitsu/NNP
said/VBD
it/PRP
made/VBD
a/DT
similar/JJ
bid/NN
to/TO
win/VB
a/DT
library/NN
contract/NN
in/IN
Nagano/NNP
prefecture/NN
two/CD
weeks/NNS
earlier/RBR
./.
It/PRP
also/RB
said/VBD
that/IN
in/IN
July/NNP
,/,
it/PRP
bid/VBD
10,000/CD
yen/NNS
to/TO
design/VB
a/DT
system/NN
for/IN
the/DT
Saitama/NNP
prefectural/JJ
library/NN
,/,
and/CC
two/CD
years/NNS
ago/RB
,/,
it/PRP
bid/VBD
one/CD
yen/NN
to/TO
plan/VB
the/DT
telecommunications/NNS
system/NN
for/IN
Wakayama/NNP
prefecture/NN
./.
The/DT
company/NN
said/VBD
it/PRP
has/VBZ
offered/VBN
to/TO
withdraw/VB
its/PRP$
bids/NNS
in/IN
Hiroshima/NNP
and/CC
Nagano/NNP
./.
The/DT
municipalities/NNS
said/VBD
they/PRP
have/VBP
n't/RB
decided/VBN
whether/IN
to/TO
try/VB
to/TO
force/VB
the/DT
company/NN
to/TO
go/VB
through/RP
with/IN
the/DT
contracts/NNS
./.
Fujitsu/NNP
and/CC
NEC/NNP
said/VBD
they/PRP
were/VBD
still/RB
investigating/VBG
,/,
and/CC
that/IN
knowledge/NN
of/IN
more/JJR
such/JJ
bids/NNS
could/MD
emerge/VB
./.
Mr./NNP
Yamamoto/NNP
insisted/VBD
that/IN
headquarters/NNS
had/VBD
n't/RB
approved/VBN
the/DT
bids/NNS
,/,
and/CC
that/IN
he/PRP
did/VBD
n't/RB
know/VB
about/IN
most/JJS
of/IN
the/DT
cases/NNS
until/IN
Wednesday/NNP
./.
Other/JJ
major/JJ
Japanese/JJ
computer/NN
companies/NNS
contacted/VBN
yesterday/NN
said/VBD
they/PRP
have/VBP
never/RBR
made/VBN
such/JJ
bids/NNS
./.
``/``
One/CD
yen/NN
is/VBZ
not/RB
ethical/JJ
,/,
''/''
Michio/NNP
Sasaki/NNP
,/,
an/DT
official/NN
at/IN
Keidanren/NNP
,/,
the/DT
Japan/NNP
Federation/NNP
of/IN
Economic/NNP
Organizations/NNP
,/,
said/VBD
./.
``/``
Profit/NN
may/MD
be/VB
low/JJ
,/,
but/CC
at/IN
least/JJS
costs/NNS
should/MD
be/VB
covered/VBN
./.
''/''
PAPERS/NNS
:/:
Backe/NNP
Group/NNP
Inc./NNP
agreed/VBD
to/TO
acquire/VB
Atlantic/NNP
Publications/NNP
Inc./NNP
,/,
which/WDT
has/VBZ
30/CD
community/NN
papers/NNS
and/CC
annual/JJ
sales/NNS
of/IN
$/$
7/CD
million/CD
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Backe/NNP
is/VBZ
a/DT
closely/RB
held/VBN
media/NNS
firm/NN
run/VBN
by/IN
former/JJ
CBS/NNP
Inc./NNP
President/NNP
John/NNP
Backe/NNP
./.
TV/NN
:/:
Price/NNP
Communications/NNP
Corp./NNP
completed/VBD
the/DT
sale/NN
of/IN
four/CD
of/IN
its/PRP$
TV/NN
stations/NNS
to/TO
NTG/NNP
Inc./NNP
for/IN
$/$
120/CD
million/CD
in/IN
cash/NN
and/CC
notes/NNS
,/,
retaining/VBG
a/DT
10/CD
%/NN
equity/NN
stake/NN
in/IN
the/DT
new/JJ
concern/NN
./.
NTG/NNP
was/VBD
formed/VBN
by/IN
Osborn/NNP
Communications/NNP
Corp./NNP
and/CC
Desai/NNP
Capital/NNP
./.
Michaels/NNP
Stores/NNP
Inc./NNP
,/,
which/WDT
owns/VBZ
and/CC
operates/VBZ
a/DT
chain/NN
of/IN
specialty/NN
retail/NN
stores/NNS
,/,
said/VBD
October/NNP
sales/NNS
rose/VBD
14.6/CD
%/NN
to/TO
$/$
32.8/CD
million/CD
from/IN
$/$
28.6/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
in/IN
stores/NNS
open/JJ
more/JJR
than/IN
one/CD
year/NN
rose/VBD
3/CD
%/NN
to/TO
$/$
29.3/CD
million/CD
from/IN
$/$
28.4/CD
million/CD
./.
Furukawa/NNP
Co./NNP
of/IN
Japan/NNP
said/VBD
it/PRP
will/MD
acquire/VB
two/CD
construction/NN
machinery/NN
plants/NNS
and/CC
a/DT
sales/NNS
unit/NN
in/IN
France/NNP
formerly/RB
belonging/VBG
to/TO
Dresser/NNP
Industries/NNP
Inc./NNP
of/IN
the/DT
U.S/NNP
./.
The/DT
company/NN
said/VBD
it/PRP
made/VBD
the/DT
purchase/NN
in/IN
order/NN
to/TO
locally/RB
produce/VB
hydraulically/RB
operated/VBN
shovels/NNS
./.
Last/JJ
October/NNP
,/,
the/DT
company/NN
also/RB
bought/VBD
a/DT
wheel-loader/JJ
manufacturing/NN
plant/NN
in/IN
Heidelberg/NNP
,/,
West/NNP
Germany/NNP
,/,
from/IN
Dresser/NNP
./.
Furukawa/NNP
said/VBD
the/DT
purchase/NN
of/IN
the/DT
French/JJ
and/CC
German/JJ
plants/NNS
together/RB
will/MD
total/VB
about/RB
40/CD
billion/CD
yen/NNS
$/$
280/CD
million/CD
Structural/NNP
Dynamics/NNP
Research/NNP
Corp./NNP
,/,
which/WDT
makes/VBZ
computer-aided/JJ
engineering/NN
software/NN
,/,
said/VBD
it/PRP
introduced/VBD
new/JJ
technology/NN
in/IN
mechanical/JJ
design/NN
automation/NN
that/WDT
will/MD
improve/VB
mechanical/JJ
engineering/NN
productivity/NN
./.
@/IN
Money/NNP
Market/NNP
Deposits-a/NNP
6.21/CD
%/NN
a/LS
-/:
Average/JJ
rate/NN
paid/VBN
yesterday/NN
by/IN
100/CD
large/JJ
banks/NNS
and/CC
thrifts/NNS
in/IN
the/DT
10/CD
largest/JJS
metropolitan/JJ
areas/NNS
as/IN
compiled/VBN
by/IN
Bank/NNP
Rate/NNP
Monitor/NNP
./.
b/LS
-/:
Current/JJ
annual/JJ
yield/NN
./.
Guaranteed/VBN
minimum/NN
6/CD
%/NN
./.
LSI/NNP
Logic/NNP
Corp./NNP
reported/VBD
a/DT
surprise/NN
$/$
35.7/CD
million/CD
third-quarter/JJ
net/JJ
loss/NN
,/,
including/VBG
a/DT
special/JJ
restructuring/NN
charge/NN
that/WDT
reflects/VBZ
a/DT
continuing/VBG
industry-wide/JJ
slowdown/NN
in/IN
semiconductor/NN
demand/NN
./.
In/IN
September/NNP
,/,
the/DT
custom-chip/JJ
maker/NN
said/VBD
excess/JJ
capacity/NN
and/CC
lagging/VBG
billings/NNS
would/MD
result/VB
in/IN
an/DT
estimated/VBN
$/$
2/CD
million/CD
to/TO
$/$
3/CD
million/CD
net/JJ
loss/NN
for/IN
the/DT
third/JJ
quarter/NN
./.
But/CC
company/NN
officials/NNS
said/VBD
yesterday/NN
that/IN
they/PRP
decided/VBD
to/TO
take/VB
a/DT
$/$
43/CD
million/CD
pretax/JJ
charge/NN
for/IN
the/DT
period/NN
to/TO
cover/VB
a/DT
restructuring/NN
of/IN
world-wide/JJ
manufacturing/NN
operations/NNS
,/,
citing/VBG
extended/JJ
weakness/NN
in/IN
the/DT
market/NN
as/RB
well/RB
as/IN
a/DT
decision/NN
to/TO
switch/VB
to/TO
more/JJR
economical/JJ
production/NN
techniques/NNS
./.
``/``
Over/IN
the/DT
summer/NN
months/NNS
,/,
there/EX
has/VBZ
been/VBN
a/DT
slowing/NN
in/IN
the/DT
rate/NN
of/IN
new/JJ
orders/NNS
from/IN
the/DT
computer/NN
sector/NN
,/,
our/PRP$
primary/JJ
market/NN
,/,
''/''
said/VBD
Wilfred/NNP
J./NNP
Corrigan/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
./.
``/``
In/IN
addition/NN
,/,
recent/JJ
industry/NN
forecasts/NNS
for/IN
1990/CD
indicate/VBP
a/DT
slow/JJ
environment/NN
,/,
at/IN
least/JJS
until/IN
midyear/NN
./.
''/''
As/IN
a/DT
result/NN
,/,
the/DT
company/NN
said/VBD
it/PRP
decided/VBD
to/TO
phase/VB
out/RP
its/PRP$
oldest/JJS
capacity/NN
and/CC
``/``
make/VB
appropriate/JJ
reductions/NNS
''/''
in/IN
operating/NN
expenses/NNS
./.
The/DT
$/$
35.7/CD
million/CD
net/JJ
loss/NN
equals/VBZ
86/CD
cents/NNS
a/DT
share/NN
./.
Not/RB
counting/VBG
the/DT
extraordinary/JJ
charge/NN
,/,
the/DT
company/NN
said/VBD
it/PRP
would/MD
have/VB
had/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
3.1/CD
million/CD
,/,
or/CC
seven/CD
cents/NNS
a/DT
share/NN
./.
A/DT
year/NN
earlier/RBR
,/,
it/PRP
had/VBD
profit/NN
of/IN
$/$
7.5/CD
million/CD
,/,
or/CC
18/CD
cents/NNS
a/DT
share/NN
./.
Revenue/NN
rose/VBD
42/CD
%/NN
to/TO
$/$
133.7/CD
million/CD
from/IN
$/$
94/CD
million/CD
./.
The/DT
charge/NN
partly/RB
reflects/VBZ
a/DT
switch/NN
from/IN
older/JJR
five-inch/JJ
to/TO
more-efficient/JJ
six-inch/JJ
silicon/NN
wafers/NNS
with/IN
which/WDT
to/TO
fabricate/VB
chips/NNS
./.
Related/VBN
to/TO
that/DT
decision/NN
,/,
the/DT
company/NN
said/VBD
it/PRP
was/VBD
converting/VBG
its/PRP$
Santa/NNP
Clara/NNP
,/,
Calif./NNP
,/,
factory/NN
to/TO
a/DT
research/NN
and/CC
development/NN
facility/NN
./.
A/DT
spokesman/NN
declined/VBD
to/TO
speculate/VB
about/IN
possible/JJ
reductions/NNS
in/IN
force/NN
./.
``/``
This/DT
is/VBZ
a/DT
company/NN
that/WDT
has/VBZ
invested/VBN
in/IN
capacity/NN
additions/NNS
more/RBR
aggressively/RB
than/IN
any/DT
other/JJ
company/NN
in/IN
the/DT
industry/NN
and/CC
now/RB
the/DT
industry/NN
is/VBZ
growing/VBG
more/RBR
slowly/RB
and/CC
they/PRP
are/VBP
suddenly/RB
poorly/RB
positioned/VBN
,/,
''/''
said/VBD
Michael/NNP
Stark/NNP
,/,
chip/NN
analyst/NN
at/IN
Robertson/NNP
,/,
Stephens/NNP
&/CC
Co/NNP
./.
``/``
I/PRP
think/VBP
the/DT
stock/NN
is/VBZ
dead/JJ
money/NN
for/IN
a/DT
while/NN
./.
''/''
Yesterday/NN
's/POS
announcement/NN
was/VBD
made/VBN
after/IN
markets/NNS
closed/VBD
./.
U.S./NNP
chip/NN
makers/NNS
are/VBP
facing/VBG
continued/VBN
slack/JJ
demand/NN
following/VBG
a/DT
traditionally/RB
slow/JJ
summer/NN
./.
Part/NN
of/IN
the/DT
problem/NN
is/VBZ
that/IN
chip/NN
buyers/NNS
are/VBP
keeping/VBG
inventories/NNS
low/JJ
because/IN
of/IN
jitters/NNS
about/IN
the/DT
course/NN
of/IN
the/DT
U.S./NNP
economy/NN
./.
INGERSOLL-RAND/NNP
Co/NNP
./.
Woodcliff/NNP
Lake/NNP
,/,
N.J/NNP
./.
--/:
William/NNP
G./NNP
Kuhns/NNP
,/,
former/JJ
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
General/NNP
Public/NNP
Utilities/NNP
Corp./NNP
,/,
was/VBD
elected/VBN
a/DT
director/NN
of/IN
this/DT
maker/NN
of/IN
industrial/JJ
and/CC
construction/NN
equipment/NN
,/,
increasing/VBG
board/NN
membership/NN
to/TO
10/CD
./.
The/DT
dollar/NN
posted/VBD
gains/NNS
against/IN
all/DT
major/JJ
currencies/NNS
yesterday/NN
,/,
buoyed/VBN
by/IN
persistent/JJ
Japanese/JJ
demand/NN
for/IN
U.S./NNP
bond/NN
issues/NNS
./.
While/IN
market/NN
sentiment/NN
remains/VBZ
cautiously/RB
bearish/JJ
on/IN
the/DT
dollar/NN
based/VBN
on/IN
sluggish/JJ
U.S./NNP
economic/JJ
indicators/NNS
,/,
dealers/NNS
note/VBP
that/IN
Japanese/JJ
demand/NN
has/VBZ
helped/VBN
underpin/VB
the/DT
dollar/NN
against/IN
the/DT
yen/NN
and/CC
has/VBZ
kept/VBN
the/DT
U.S./NNP
currency/NN
from/IN
plunging/VBG
below/IN
key/JJ
levels/NNS
against/IN
the/DT
mark/NN
./.
At/IN
the/DT
same/JJ
time/NN
,/,
dealers/NNS
said/VBD
the/DT
U.S./NNP
unit/NN
has/VBZ
been/VBN
locked/VBN
into/IN
a/DT
relatively/RB
narrow/JJ
range/NN
in/IN
recent/JJ
weeks/NNS
,/,
in/IN
part/NN
because/IN
the/DT
hefty/JJ
Japanese/JJ
demand/NN
for/IN
dollars/NNS
has/VBZ
been/VBN
offset/VBN
by/IN
the/DT
mark/NN
's/POS
strength/NN
,/,
resulting/VBG
in/IN
a/DT
stalemate/NN
./.
Jay/NNP
Goldinger/NNP
,/,
with/IN
Capital/NNP
Insight/NNP
Inc./NNP
,/,
reasons/VBZ
that/IN
while/IN
the/DT
mark/NN
has/VBZ
posted/VBN
significant/JJ
gains/NNS
against/IN
the/DT
yen/NN
as/RB
well/RB
--/:
the/JJ
mark/NN
climbed/VBD
to/TO
77.70/CD
yen/NNS
from/IN
77.56/CD
yen/NNS
late/JJ
Tuesday/NNP
in/IN
New/NNP
York/NNP
--/:
the/JJ
strength/NN
of/IN
the/DT
U.S./NNP
bond/NN
market/NN
compared/VBN
to/TO
its/PRP$
foreign/JJ
counterparts/NNS
has/VBZ
helped/VBN
lure/NN
investors/NNS
to/TO
dollar-denominated/JJ
bonds/NNS
,/,
rather/RB
than/IN
mark/NN
bonds/NNS
./.
``/``
Dollar-yen/JJ
trade/NN
the/DT
driving/VBG
force/NN
in/IN
the/DT
market/NN
,/,
''/''
said/VBD
Tom/NNP
Trettien/NNP
,/,
a/DT
vice/NN
president/NN
with/IN
Banque/NNP
Paribas/NNP
in/IN
New/NNP
York/NNP
,/,
``/``
but/CC
I/PRP
'm/VBP
not/RB
convinced/VBN
it/PRP
will/MD
continue/VB
./.
Who/WP
knows/VBZ
what/WP
will/MD
happen/VB
down/IN
the/DT
road/NN
,/,
in/IN
three/CD
to/TO
six/CD
months/NNS
,/,
if/IN
foreign/JJ
investment/NN
starts/VBZ
to/TO
erode/VB
?/.
''/''
In/IN
late/JJ
New/NNP
York/NNP
trading/NN
yesterday/NN
,/,
the/DT
dollar/NN
was/VBD
quoted/VBN
at/IN
1.8500/CD
marks/NNS
,/,
up/RB
from/IN
1.8415/CD
marks/NNS
late/JJ
Tuesday/NNP
,/,
and/CC
at/IN
143.80/CD
yen/NNS
,/,
up/RB
from/IN
142.85/CD
yen/NNS
late/JJ
Tuesday/NNP
./.
Sterling/NN
was/VBD
quoted/VBN
at/IN
$/$
1.5755/CD
,/,
down/RB
from/IN
$/$
1.5805/CD
late/JJ
Tuesday/NNP
./.
In/IN
Tokyo/NNP
Thursday/NNP
,/,
the/DT
U.S./JJ
currency/NN
opened/VBD
for/IN
trading/NN
at/IN
143.93/CD
yen/NNS
,/,
up/RB
from/IN
Wednesday/NNP
's/POS
Tokyo/NNP
close/NN
of/IN
143.08/CD
yen/NNS
./.
Douglas/NNP
Madison/NNP
,/,
a/DT
corporate/JJ
trader/NN
with/IN
Bank/NNP
of/IN
America/NNP
in/IN
Los/NNP
Angeles/NNP
,/,
traced/VBD
the/DT
dollar/NN
's/POS
recent/JJ
solid/JJ
performance/NN
against/IN
the/DT
yen/NN
to/TO
purchases/NNS
of/IN
securities/NNS
by/IN
Japanese/JJ
insurance/NN
companies/NNS
and/CC
trust/NN
banks/NNS
and/CC
the/DT
sense/NN
that/IN
another/DT
wave/NN
of/IN
investment/NN
is/VBZ
waiting/VBG
in/IN
the/DT
wings/NNS
./.
He/PRP
contends/VBZ
that/IN
the/DT
perception/NN
in/IN
Japan/NNP
of/IN
a/DT
vitriolic/JJ
U.S./NNP
response/NN
to/TO
Sony/NNP
Corp./NNP
's/POS
announcement/NN
of/IN
its/PRP$
purchase/NN
of/IN
Columbia/NNP
Pictures/NNP
Entertainment/NNP
Inc./NNP
has/VBZ
been/VBN
temporarily/RB
mollified/VBN
./.
He/PRP
cites/VBZ
the/DT
recent/JJ
deal/NN
between/IN
the/DT
Mitsubishi/NNP
Estate/NNP
Co./NNP
and/CC
the/DT
Rockefeller/NNP
Group/NNP
,/,
as/RB
well/RB
as/IN
the/DT
possible/JJ
white/JJ
knight/NN
role/NN
of/IN
an/DT
undisclosed/JJ
Japanese/JJ
company/NN
in/IN
the/DT
Georgia-Pacific/NNP
Corp./NNP
takeover/NN
bid/NN
for/IN
Great/JJ
Northern/NNP
Nekoosa/NNP
Corp./NNP
as/IN
evidence/NN
./.
The/DT
forthcoming/JJ
maturity/NN
in/IN
November/NNP
of/IN
a/DT
10-year/CD
Japanese/JJ
government/NN
yen-denominated/JJ
bond/NN
issue/NN
valued/VBN
at/IN
about/RB
$/$
16/CD
billion/CD
has/VBZ
prompted/VBN
speculation/NN
in/IN
the/DT
market/NN
that/IN
investors/NNS
redeeming/VBG
the/DT
bonds/NNS
will/MD
diversify/VB
into/IN
dollar-denominated/JJ
instruments/NNS
,/,
according/VBG
to/TO
Mr./NNP
Madison/NNP
./.
It/PRP
remains/VBZ
unclear/JJ
whether/IN
the/DT
bond/NN
issue/NN
will/MD
be/VB
rolled/VBN
over/RP
./.
Meanwhile/RB
,/,
traders/NNS
in/IN
Tokyo/NNP
say/VBP
that/IN
the/DT
prospect/NN
of/IN
lower/JJR
U.S./NNP
interest/NN
rates/NNS
has/VBZ
spurred/VBN
dollar/NN
buying/VBG
by/IN
Japanese/JJ
institutions/NNS
./.
They/PRP
point/VBP
out/RP
that/IN
these/DT
institutions/NNS
want/VBP
to/TO
lock/VB
in/RP
returns/NNS
on/IN
high-yield/JJ
U.S./NNP
Treasury/NNP
debt/NN
and/CC
suggest/VBP
demand/NN
for/IN
the/DT
U.S./NNP
unit/NN
will/MD
continue/VB
unabated/JJ
until/IN
rates/NNS
in/IN
the/DT
U.S./NNP
recede/VBP
./.
The/DT
market/NN
again/RB
showed/VBD
little/JJ
interest/NN
in/IN
further/JJ
evidence/NN
of/IN
a/DT
slowing/VBG
U.S./NNP
economy/NN
,/,
and/CC
traders/NNS
note/VBP
that/IN
the/DT
market/NN
in/IN
recent/JJ
weeks/NNS
has/VBZ
taken/VBN
its/PRP$
cues/NNS
more/RBR
from/IN
Wall/NNP
Street/NNP
than/IN
U.S./NNP
economic/JJ
indicators/NNS
./.
Dealers/NNS
said/VBD
the/DT
dollar/NN
merely/RB
drifted/VBD
lower/RBR
following/VBG
the/DT
release/NN
Wednesday/NNP
of/IN
the/DT
U.S./NNP
purchasing/NN
managers/NNS
'/POS
report/NN
./.
The/DT
managers/NNS
'/POS
index/NN
,/,
which/WDT
measures/VBZ
the/DT
health/NN
of/IN
the/DT
manufacturing/VBG
sector/NN
,/,
stood/VBD
at/IN
47.6/CD
%/NN
in/IN
October/NNP
,/,
above/IN
September/NNP
's/POS
46/CD
%/NN
,/,
and/CC
also/RB
above/IN
average/JJ
forecasts/NNS
for/IN
the/DT
index/NN
of/IN
45.3/CD
%/NN
./.
Some/DT
dealers/NNS
said/VBD
the/DT
dollar/NN
was/VBD
pressured/JJ
slightly/RB
because/IN
a/DT
number/NN
of/IN
market/NN
participants/NNS
had/VBD
boosted/VBN
their/PRP$
expectations/NNS
in/IN
the/DT
past/JJ
day/NN
and/CC
were/VBD
looking/VBG
for/IN
an/DT
index/NN
above/IN
50/CD
,/,
which/WDT
indicates/VBZ
an/DT
expanding/VBG
manufacturing/NN
economy/NN
./.
But/CC
most/JJS
said/VBD
the/DT
index/NN
had/VBD
no/RB
more/JJR
than/IN
a/DT
minimal/JJ
effect/NN
on/IN
trade/NN
./.
On/IN
the/DT
Commodity/NNP
Exchange/NNP
in/IN
New/NNP
York/NNP
,/,
gold/NN
for/IN
current/JJ
delivery/NN
settled/VBN
at/IN
$/$
374.20/CD
an/DT
ounce/NN
,/,
down/IN
50/CD
cents/NNS
./.
Estimated/VBN
volume/NN
was/VBD
a/DT
moderate/JJ
3.5/CD
million/CD
ounces/NNS
./.
In/IN
early/RB
trading/NN
in/IN
Hong/NNP
Kong/NNP
Thursday/NNP
,/,
gold/NN
was/VBD
quoted/VBN
at/IN
$/$
374.19/CD
an/DT
ounce/NN
./.
``/``
The/DT
Cosby/NNP
Show/NNP
''/''
may/MD
have/VB
single-handedly/RB
turned/VBN
around/RP
ratings/NNS
at/IN
NBC/NNP
since/IN
its/PRP$
debut/NN
in/IN
1984/CD
,/,
and/CC
the/DT
Huxtable/NNP
family/NN
still/RB
keeps/VBZ
millions/NNS
of/IN
viewers/NNS
laughing/VBG
Thursday/NNP
night/NN
on/IN
the/DT
network/NN
./.
But/CC
some/DT
of/IN
the/DT
TV/NN
stations/NNS
that/WDT
bought/VBD
``/``
Cosby/NNP
''/''
reruns/NNS
for/IN
record/NN
prices/NNS
two/CD
years/NNS
ago/RB
are/VBP
n't/RB
laughing/VBG
much/RB
these/DT
days/NNS
./.
The/DT
reruns/NNS
have/VBP
helped/VBN
ratings/NNS
at/IN
many/JJ
of/IN
the/DT
187/CD
network/NN
affiliates/NNS
and/CC
independent/JJ
TV/NN
stations/NNS
that/WDT
air/VBP
the/DT
shows/NNS
./.
But/CC
the/DT
ratings/NNS
are/VBP
considerably/RB
below/IN
expectations/NNS
,/,
and/CC
some/DT
stations/NNS
say/VBP
they/PRP
may/MD
not/RB
buy/VB
new/JJ
episodes/NNS
when/WRB
their/PRP$
current/JJ
contracts/NNS
expire/VBP
./.
Meanwhile/RB
,/,
stations/NNS
are/VBP
fuming/VBG
because/RB
,/,
many/JJ
of/IN
them/PRP
say/VBP
,/,
the/DT
show/NN
's/POS
distributor/NN
,/,
Viacom/NNP
Inc./NNP
,/,
is/VBZ
giving/VBG
an/DT
ultimatum/NN
:/:
Either/CC
sign/VB
new/JJ
long-term/JJ
commitments/NNS
to/TO
buy/VB
future/JJ
episodes/NNS
or/CC
risk/VB
losing/VBG
``/``
Cosby/NNP
''/''
to/TO
a/DT
competitor/NN
./.
At/IN
the/DT
same/JJ
time/NN
,/,
Viacom/NNP
is/VBZ
trying/VBG
to/TO
persuade/VB
stations/NNS
to/TO
make/VB
commitments/NNS
to/TO
``/``
A/DT
Different/NNP
World/NNP
,/,
''/''
a/DT
spin-off/NN
of/IN
``/``
Cosby/NNP
''/''
whose/WP$
reruns/NNS
will/MD
become/VB
available/JJ
in/IN
1991/CD
./.
Viacom/NNP
denies/VBZ
it/PRP
's/VBZ
using/VBG
pressure/NN
tactics/NNS
./.
``/``
We/PRP
're/VBP
willing/JJ
to/TO
negotiate/VB
,/,
''/''
says/VBZ
Dennis/NNP
Gillespie/NNP
,/,
executive/JJ
vice/NN
president/NN
of/IN
marketing/VBG
./.
``/``
We/PRP
're/VBP
offering/VBG
this/DT
plan/NN
now/RB
because/IN
we/PRP
feel/VBP
it/PRP
's/VBZ
the/DT
right/JJ
time/NN
./.
''/''
But/CC
,/,
says/VBZ
the/DT
general/JJ
manager/NN
of/IN
a/DT
network/NN
affiliate/NN
in/IN
the/DT
Midwest/NN
,/,
``/``
I/PRP
think/VBP
if/IN
I/PRP
tell/VBP
them/PRP
I/PRP
need/VBP
more/JJR
time/NN
,/,
they/PRP
'll/MD
take/VB
`/``
Cosby/NNP
'/''
across/IN
the/DT
street/NN
,/,
''/''
Viacom/NNP
's/POS
move/NN
comes/VBZ
as/IN
the/DT
syndication/NN
market/NN
is/VBZ
being/VBG
flooded/VBN
with/IN
situation/NN
comedies/NNS
that/WDT
are/VBP
still/RB
running/VBG
on/IN
the/DT
networks/NNS
./.
One/CD
station/NN
manager/NN
says/VBZ
he/PRP
believes/VBZ
Viacom/NNP
's/POS
move/NN
is/VBZ
a/DT
``/``
pre-emptive/JJ
strike/NN
''/''
because/IN
the/DT
company/NN
is/VBZ
worried/VBN
that/IN
``/``
Cosby/NNP
''/''
ratings/NNS
will/MD
continue/VB
to/TO
drop/VB
in/IN
syndication/NN
over/IN
the/DT
next/JJ
few/JJ
years/NNS
./.
``/``
Cosby/NNP
''/''
is/VBZ
down/RB
a/DT
full/JJ
ratings/NNS
point/NN
in/IN
the/DT
week/NN
of/IN
Oct./NNP
2-8/CD
over/IN
the/DT
same/JJ
week/NN
a/DT
year/NN
ago/RB
,/,
according/VBG
to/TO
A.C./NNP
Nielsen/NNP
Co/NNP
./.
Mr./NNP
Gillespie/NNP
at/IN
Viacom/NNP
says/VBZ
the/DT
ratings/NNS
are/VBP
rising/VBG
./.
And/CC
executives/NNS
at/IN
stations/NNS
in/IN
such/JJ
major/JJ
markets/NNS
as/IN
Washington/NNP
;/:
Providence/NNP
,/,
R.I./NNP
;/:
Cleveland/NNP
;/:
Raleigh/NNP
,/,
N.C./NNP
;/:
Minneapolis/NNP
,/,
and/CC
Louisville/NNP
,/,
Ky./NNP
,/,
say/VBP
they/PRP
may/MD
very/RB
well/RB
not/RB
renew/VB
``/``
Cosby/NNP
./.
''/''
Dick/NNP
Lobo/NNP
,/,
the/DT
general/JJ
manager/NN
of/IN
WTVJ/NNP
,/,
the/DT
NBC-owned/JJ
station/NN
in/IN
Miami/NNP
,/,
for/IN
example/NN
,/,
says/VBZ
the/DT
show/NN
has/VBZ
``/``
been/VBN
a/DT
major/JJ
disappointment/NN
to/TO
us/PRP
./.
''/''
``/``
At/IN
the/DT
prices/NNS
we/PRP
were/VBD
charged/VBN
,/,
there/EX
should/MD
have/VB
been/VBN
some/DT
return/NN
for/IN
the/DT
dollar/NN
./.
There/EX
was/VBD
n't/RB
./.
''/''
Neil/NNP
Kuvin/NNP
,/,
the/DT
general/JJ
manager/NN
of/IN
WHAS/NNP
,/,
the/DT
CBS/NNP
affiliate/NN
in/IN
Louisville/NNP
,/,
says/VBZ
``/``
Cosby/NNP
''/''
gets/VBZ
the/DT
station/NN
's/POS
highest/JJS
ratings/NNS
and/CC
he/PRP
's/VBZ
``/``
pleased/VBN
./.
''/''
But/CC
he/PRP
adds/VBZ
,/,
``/``
I/PRP
feel/VBP
pressured/JJ
,/,
disappointed/JJ
,/,
uncomfortable/JJ
and/CC
,/,
frankly/RB
,/,
quite/RB
angry/JJ
with/IN
Viacom/NNP
./.
''/''
The/DT
Life/NNP
Insurance/NNP
Co./NNP
of/IN
Georgia/NNP
has/VBZ
officially/RB
opened/VBN
an/DT
office/NN
in/IN
Taipei/NNP
./.
David/NNP
Wu/NNP
,/,
the/DT
company/NN
's/POS
representative/NN
in/IN
Taiwan/NNP
,/,
said/VBD
Atlanta-based/JJ
Life/NNP
of/IN
Georgia/NNP
will/MD
sell/VB
conventional/JJ
life-insurance/NN
products/NNS
./.
Life/NNP
of/IN
Georgia/NNP
is/VBZ
part/NN
of/IN
the/DT
Nationale/NNP
Nederlanden/NNP
Group/NNP
,/,
based/VBN
in/IN
the/DT
Netherlands/NNP
./.
In/IN
this/DT
era/NN
of/IN
frantic/JJ
competition/NN
for/IN
ad/NN
dollars/NNS
,/,
a/DT
lot/NN
of/IN
revenue-desperate/JJ
magazines/NNS
are/VBP
getting/VBG
pretty/RB
cozy/JJ
with/IN
advertisers/NNS
--/:
fawning/VBG
over/IN
them/PRP
in/IN
articles/NNS
and/CC
offering/VBG
pages/NNS
of/IN
advertorial/JJ
space/NN
./.
So/RB
can/MD
a/DT
magazine/NN
survive/VB
by/IN
downright/RB
thumbing/VBG
its/PRP$
nose/NN
at/IN
major/JJ
advertisers/NNS
?/.
Garbage/NNP
magazine/NN
,/,
billed/VBD
as/IN
``/``
The/NNP
Practical/NNP
Journal/NNP
for/IN
the/DT
Environment/NNP
,/,
''/''
is/VBZ
about/IN
to/TO
find/VB
out/IN
./.
Founded/VBN
by/IN
Brooklyn/NNP
,/,
N.Y./NNP
,/,
publishing/VBG
entrepreneur/NN
Patricia/NNP
Poore/NNP
,/,
Garbage/NNP
made/VBD
its/PRP$
debut/NN
this/DT
fall/NN
with/IN
the/DT
promise/NN
to/TO
give/VB
consumers/NNS
the/DT
straight/JJ
scoop/NN
on/IN
the/DT
U.S./NNP
waste/NN
crisis/NN
./.
The/DT
magazine/NN
combines/VBZ
how-to/JJ
pieces/NNS
on/IN
topics/NNS
like/IN
backyard/NN
composting/NN
,/,
explanatory/JJ
essays/NNS
on/IN
such/JJ
things/NNS
as/IN
what/WP
happens/VBZ
after/IN
you/PRP
flush/VBP
your/PRP$
toilet/NN
,/,
and/CC
hard-hitting/JJ
pieces/NNS
on/IN
alleged/JJ
environmental/JJ
offenders/NNS
./.
Garbage/NNP
editors/NNS
have/VBP
dumped/VBN
considerable/JJ
energy/NN
into/IN
a/DT
whirling/JJ
rampage/NN
through/IN
supermarket/NN
aisles/NNS
in/IN
a/DT
bid/NN
to/TO
identify/VB
corporate/JJ
America/NNP
's/POS
good/JJ
guys/NNS
and/CC
bad/JJ
boys/NNS
./.
In/IN
one/CD
feature/NN
,/,
called/VBN
``/``
In/NNP
the/DT
Dumpster/NNP
,/,
''/''
editors/NNS
point/VBP
out/IN
a/DT
product/NN
they/PRP
deem/VBP
to/TO
be/VB
a/DT
particularly/RB
bad/JJ
offender/NN
./.
From/IN
an/DT
advertising/NN
standpoint/NN
,/,
the/DT
problem/NN
is/VBZ
these/DT
offenders/NNS
are/VBP
likely/JJ
to/TO
be/VB
some/DT
of/IN
the/DT
same/JJ
folks/NNS
that/WDT
are/VBP
major/JJ
magazine/NN
advertisers/NNS
these/DT
days/NNS
./.
With/IN
only/RB
two/CD
issues/NNS
under/IN
its/PRP$
belt/NN
,/,
Garbage/NNP
has/VBZ
alienated/VBN
some/DT
would-be/JJ
advertisers/NNS
and/CC
raised/VBN
the/DT
ire/NN
of/IN
others/NNS
./.
Campbell/NNP
Soup/NNP
,/,
for/IN
one/CD
,/,
is/VBZ
furious/JJ
its/PRP$
Souper/NNP
Combo/NNP
microwave/NN
product/NN
was/VBD
chastised/VBN
in/IN
the/DT
premiere/NN
``/``
In/NNP
the/DT
Dumpster/NNP
''/''
column/NN
./.
The/DT
magazine/NN
's/POS
editors/NNS
ran/VBD
a/DT
giant/JJ
diagram/NN
of/IN
the/DT
product/NN
with/IN
arrows/NNS
pointing/VBG
to/TO
the/DT
packaging/NN
's/POS
polystyrene/NN
foam/NN
,/,
polyproplene/NN
and/CC
polyester/NN
film/NN
--/:
all/DT
plastic/NN
items/NNS
they/PRP
say/VBP
are/VBP
non-biodegradable/JJ
./.
``/``
It/PRP
's/VBZ
precisely/RB
the/DT
kind/NN
of/IN
product/NN
that/WDT
's/VBZ
created/VBN
the/DT
municipal/JJ
landfill/NN
monster/NN
,/,
''/''
the/DT
editors/NNS
wrote/VBD
./.
``/``
I/PRP
think/VBP
that/IN
this/DT
magazine/NN
is/VBZ
not/RB
only/RB
called/VBN
Garbage/NNP
,/,
but/CC
it/PRP
is/VBZ
practicing/VBG
journalistic/JJ
garbage/NN
,/,
''/''
fumes/VBZ
a/DT
spokesman/NN
for/IN
Campbell/NNP
Soup/NNP
./.
He/PRP
says/VBZ
Campbell/NNP
was/VBD
n't/RB
even/RB
contacted/VBN
by/IN
the/DT
magazine/NN
for/IN
the/DT
opportunity/NN
to/TO
comment/VB
./.
Modifications/NNS
had/VBD
been/VBN
made/VBN
to/TO
the/DT
Souper/NNP
Combo/NNP
product/NN
at/IN
the/DT
time/NN
the/DT
issue/NN
was/VBD
printed/VBN
,/,
he/PRP
says/VBZ
,/,
making/VBG
it/PRP
less/JJR
an/DT
offender/NN
than/IN
was/VBD
portrayed/VBN
./.
He/PRP
admits/VBZ
,/,
though/RB
,/,
it/PRP
is/VBZ
n't/RB
one/CD
of/IN
Campbell/NNP
Soup/NNP
's/POS
better/JJR
products/NNS
in/IN
terms/NNS
of/IN
recyclability/NN
./.
Campbell/NNP
Soup/NNP
,/,
not/RB
surprisingly/RB
,/,
does/VBZ
n't/RB
have/VB
any/DT
plans/NNS
to/TO
advertise/VB
in/IN
the/DT
magazine/NN
,/,
according/VBG
to/TO
its/PRP$
spokesman/NN
./.
Some/DT
media/NNS
experts/NNS
question/VBP
whether/IN
a/DT
young/JJ
magazine/NN
can/MD
risk/VB
turning/VBG
off/IN
Madison/NNP
Avenue/NNP
's/POS
big/JJ
spenders/NNS
./.
``/``
You/PRP
really/RB
need/VBP
the/DT
Campbell/NNP
Soups/NNP
of/IN
the/DT
world/NN
to/TO
be/VB
interested/JJ
in/IN
your/PRP$
magazine/NN
if/IN
you/PRP
're/VBP
going/VBG
to/TO
make/VB
a/DT
run/NN
of/IN
it/PRP
,/,
''/''
says/VBZ
Mike/NNP
White/NNP
,/,
senior/JJ
vice/NN
president/NN
and/CC
media/NNS
director/NN
at/IN
DDB/NNP
Needham/NNP
,/,
Chicago/NNP
./.
``/``
The/DT
economics/NNS
of/IN
magazine/NN
publishing/NN
pretty/RB
much/RB
require/VBP
that/IN
you/PRP
have/VBP
a/DT
pretty/RB
solid/JJ
base/NN
''/''
of/IN
big-time/JJ
ad/NN
spenders/NNS
,/,
he/PRP
adds/VBZ
./.
The/DT
first/JJ
two/CD
issues/NNS
featured/VBD
ads/NNS
from/IN
only/RB
a/DT
handful/NN
of/IN
big/JJ
advertisers/NNS
,/,
including/VBG
General/NNP
Electric/NNP
and/CC
Adolph/NNP
Coors/NNP
,/,
but/CC
the/DT
majority/NN
were/VBD
from/IN
companies/NNS
like/IN
Waste/NNP
Management/NNP
Inc./NNP
and/CC
Bumkins/NNP
International/NNP
,/,
firms/NNS
that/WDT
do/VBP
n't/RB
spend/VB
much/JJ
money/NN
advertising/VBG
and/CC
ca/MD
n't/RB
be/VB
relied/VBN
on/IN
to/TO
support/VB
a/DT
magazine/NN
over/IN
the/DT
long/JJ
haul/NN
./.
A/DT
Waste/NNP
Management/NNP
spokeswoman/NN
says/VBZ
its/PRP$
ad/NN
in/IN
the/DT
premiere/NN
issue/NN
was/VBD
a/DT
one-time/JJ
purchase/NN
,/,
and/CC
it/PRP
does/VBZ
n't/RB
have/VB
any/DT
plans/NNS
to/TO
advertise/VB
in/IN
future/JJ
issues/NNS
./.
``/``
We/PRP
do/VBP
n't/RB
spend/VB
much/JJ
on/IN
print/NN
advertising/NN
,/,
''/''
she/PRP
says/VBZ
./.
But/CC
Ms./NNP
Poore/NNP
,/,
the/DT
magazine/NN
's/POS
editor/NN
and/CC
publisher/NN
,/,
contends/VBZ
Garbage/NNP
can/MD
survive/VB
,/,
at/IN
least/JJS
initially/RB
,/,
on/IN
subscription/NN
revenues/NNS
./.
Individual/JJ
copies/NNS
of/IN
the/DT
magazine/NN
sell/VBP
for/IN
$/$
2.95/CD
and/CC
yearly/JJ
subscriptions/NNS
cost/NN
$/$
21/CD
./.
It/PRP
is/VBZ
,/,
of/IN
course/NN
,/,
printed/VBN
on/IN
recycled/VBN
paper/NN
./.
According/VBG
to/TO
Ms./NNP
Poore/NNP
,/,
Old-House/NNP
Journal/NNP
Corp./NNP
,/,
her/PRP$
publishing/NN
company/NN
,/,
printed/VBD
and/CC
sold/VBD
all/DT
126,000/CD
copies/NNS
of/IN
the/DT
premiere/NN
issue/NN
./.
The/DT
first/JJ
and/CC
second/JJ
issues/NNS
sold/VBD
out/IN
on/IN
newsstands/NNS
,/,
she/PRP
says/VBZ
,/,
and/CC
the/DT
magazine/NN
has/VBZ
orders/NNS
for/IN
93,000/CD
subscriptions/NNS
./.
Asked/VBN
whether/IN
potential/JJ
advertisers/NNS
will/MD
be/VB
scared/VBN
away/RB
by/IN
the/DT
magazine/NN
's/POS
direct/JJ
policy/NN
,/,
Ms./NNP
Poore/NNP
replies/VBZ
:/:
``/``
I/PRP
do/VBP
n't/RB
know/VB
and/CC
I/PRP
do/VBP
n't/RB
care/VB
./.
I/PRP
'm/VBP
not/RB
saying/VBG
advertising/NN
revenue/NN
is/VBZ
n't/RB
important/JJ
,/,
''/''
she/PRP
says/VBZ
,/,
``/``
but/CC
I/PRP
could/MD
n't/RB
sleep/VB
at/IN
night/NN
''/''
if/IN
the/DT
magazine/NN
bowed/VBD
to/TO
a/DT
company/NN
because/IN
they/PRP
once/RB
took/VBD
out/IN
an/DT
ad/NN
./.
Ad/NNP
Notes/NNPS
.../:
./.
INTERPUBLIC/NNP
ON/NNP
TV/NNP
:/:
Interpublic/NNP
Group/NNP
said/VBD
its/PRP$
television/NN
programming/NN
operations/NNS
--/:
which/IN
it/PRP
expanded/VBD
earlier/JJR
this/DT
year/NN
--/:
agreed/NN
to/TO
supply/VB
more/JJR
than/IN
4,000/CD
hours/NNS
of/IN
original/JJ
programming/NN
across/IN
Europe/NNP
in/IN
1990/CD
./.
It/PRP
said/VBD
the/DT
programs/NNS
,/,
largely/RB
game/NN
shows/NNS
,/,
will/MD
be/VB
provided/VBN
by/IN
its/PRP$
E.C./NNP
Television/NNP
unit/NN
along/IN
with/IN
Fremantle/NNP
International/NNP
,/,
a/DT
producer/NN
and/CC
distributor/NN
of/IN
game/NN
shows/NNS
of/IN
which/WDT
it/PRP
recently/RB
bought/VBD
49/CD
%/NN
./.
It/PRP
said/VBD
that/DT
volume/NN
makes/VBZ
it/PRP
the/DT
largest/JJS
supplier/NN
of/IN
original/JJ
TV/NN
programming/NN
in/IN
Europe/NNP
./.
Interpublic/NNP
is/VBZ
providing/VBG
the/DT
programming/NN
in/IN
return/NN
for/IN
advertising/NN
time/NN
,/,
which/WDT
it/PRP
said/VBD
will/MD
be/VB
valued/VBN
at/IN
more/RBR
than/IN
$/$
75/CD
million/CD
in/IN
1990/CD
and/CC
$/$
150/CD
million/CD
in/IN
1991/CD
./.
It/PRP
plans/VBZ
to/TO
sell/VB
the/DT
ad/NN
time/NN
to/TO
its/PRP$
clients/NNS
at/IN
a/DT
discount/NN
./.
NEW/NNP
ACCOUNT/NNP
:/:
CoreStates/NNP
Financial/NNP
Corp./NNP
,/,
Philadelphia/NNP
,/,
named/VBD
Earle/NNP
Palmer/NNP
Brown/NNP
&/CC
Spiro/NNP
,/,
Philadelphia/NNP
,/,
as/IN
agency/NN
of/IN
record/NN
for/IN
its/PRP$
$/$
5/CD
million/CD
account/NN
./.
The/DT
business/NN
had/VBD
been/VBN
handled/VBN
by/IN
VanSant/NNP
Dugdale/NNP
,/,
Baltimore/NNP
./.
AT&T/NNP
FAX/NNP
:/:
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
's/POS
General/NNP
Business/NNP
Systems/NNPS
division/NN
,/,
New/NNP
York/NNP
,/,
awarded/VBD
the/DT
ad/NN
account/NN
for/IN
its/PRP$
Fax/NNP
product/NN
line/NN
to/TO
Ogilvy/NNP
&/CC
Mather/NNP
,/,
New/NNP
York/NNP
,/,
a/DT
WPP/NNP
Group/NNP
agency/NN
./.
Billings/NNS
were/VBD
n't/RB
disclosed/VBN
for/IN
the/DT
small/JJ
account/NN
,/,
which/WDT
had/VBD
been/VBN
serviced/VBN
at/IN
Young/NNP
&/CC
Rubicam/NNP
,/,
New/NNP
York/NNP
./.
FIRST/CD
CAMPAIGN/NNP
:/:
Enterprise/NNP
Rent-A-Car/NNP
Inc./NNP
breaks/VBZ
its/PRP$
first/JJ
national/JJ
ad/NN
campaign/NN
this/DT
week/NN
./.
The/DT
St./NNP
Louis/NNP
firm/NN
specializes/VBZ
in/IN
replacement-car/NN
rentals/NNS
,/,
those/DT
provided/VBN
by/IN
insurance/NN
companies/NNS
for/IN
cars/NNS
damaged/VBN
in/IN
accidents/NNS
./.
Developed/VBN
by/IN
Avrett/NNP
,/,
Free/NNP
&/CC
Ginsberg/NNP
,/,
New/NNP
York/NNP
,/,
the/DT
$/$
6/CD
million/CD
campaign/NN
pitches/VBZ
Enterprise/NNP
's/POS
consumer-driven/JJ
service/NN
and/CC
its/PRP$
free/JJ
pick-up/JJ
and/CC
drop-off/JJ
service/NN
./.
LANDOR/NNP
ASSOCIATES/NNPS
:/:
Young/NNP
&/CC
Rubicam/NNP
said/VBD
it/PRP
completed/VBD
its/PRP$
acquisition/NN
of/IN
Landor/NNP
Associates/NNPS
,/,
a/DT
San/NNP
Francisco/NNP
identity-management/NN
firm/NN
./.
ACQUISITION/NNP
:/:
Ketchum/NNP
Communications/NNPS
,/,
Pittsburgh/NNP
,/,
acquired/VBD
Braun/NNP
&/CC
Co./NNP
,/,
a/DT
Los/NNP
Angeles/NNP
investor-relations/NNS
and/CC
marketing-communications/NNS
firm/NN
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Sea/NNP
Containers/NNPS
Ltd./NNP
said/VBD
it/PRP
might/MD
increase/VB
the/DT
price/NN
of/IN
its/PRP$
$/$
70-a-share/JJ
buy-back/JJ
plan/NN
if/IN
pressed/VBN
by/IN
Temple/NNP
Holdings/NNP
Ltd./NNP
,/,
which/WDT
made/VBD
an/DT
earlier/JJR
tender/JJ
offer/NN
for/IN
Sea/NNP
Containers/NNPS
./.
Sea/NNP
Containers/NNPS
,/,
a/DT
Hamilton/NNP
,/,
Bermuda-based/JJ
shipping/NN
concern/NN
,/,
said/VBD
Tuesday/NNP
that/IN
it/PRP
would/MD
sell/VB
$/$
1.1/CD
billion/CD
of/IN
assets/NNS
and/CC
use/VB
some/DT
of/IN
the/DT
proceeds/NNS
to/TO
buy/VB
about/IN
50/CD
%/NN
of/IN
its/PRP$
common/JJ
shares/NNS
for/IN
$/$
70/CD
apiece/RB
./.
The/DT
move/NN
is/VBZ
designed/VBN
to/TO
ward/VB
off/IN
a/DT
hostile/JJ
takeover/NN
attempt/NN
by/IN
two/CD
European/JJ
shipping/NN
concerns/NNS
,/,
Stena/NNP
Holding/NNP
AG/NNP
and/CC
Tiphook/NNP
PLC/NNP
./.
In/IN
May/NNP
,/,
the/DT
two/CD
companies/NNS
,/,
through/IN
their/PRP$
jointly/RB
owned/VBN
holding/VBG
company/NN
,/,
Temple/NNP
,/,
offered/VBD
$/$
50/CD
a/DT
share/NN
,/,
or/CC
$/$
777/CD
million/CD
,/,
for/IN
Sea/NNP
Containers/NNPS
./.
In/IN
August/NNP
,/,
Temple/NNP
sweetened/VBD
the/DT
offer/NN
to/TO
$/$
63/CD
a/DT
share/NN
,/,
or/CC
$/$
963/CD
million/CD
./.
Yesterday/NN
,/,
Sea/NNP
Containers/NNPS
'/POS
chief/JJ
executive/NN
officer/NN
,/,
James/NNP
Sherwood/NNP
,/,
said/VBD
in/IN
an/DT
interview/NN
that/IN
,/,
under/IN
the/DT
asset-sale/JJ
plan/NN
,/,
Sea/NNP
Containers/NNPS
would/MD
end/VB
up/IN
with/IN
a/DT
cash/NN
surplus/NN
of/IN
approximately/RB
$/$
620/CD
million/CD
./.
About/IN
$/$
490/CD
million/CD
of/IN
that/WDT
would/MD
be/VB
allocated/VBN
to/TO
the/DT
buy-back/NN
,/,
leaving/VBG
about/IN
$/$
130/CD
million/CD
,/,
he/PRP
said/VBD
./.
That/DT
$/$
130/CD
million/CD
,/,
Mr./NNP
Sherwood/NNP
said/VBD
,/,
``/``
gives/VBZ
us/PRP
some/DT
flexibility/NN
in/IN
case/NN
Temple/NNP
raises/VBZ
its/PRP$
bid/NN
./.
We/PRP
are/VBP
able/JJ
to/TO
increase/VB
our/PRP$
price/NN
above/IN
the/DT
$/$
70/CD
level/NN
if/IN
necessary/JJ
./.
''/''
He/PRP
declined/VBD
to/TO
say/VB
,/,
however/RB
,/,
how/WRB
much/JJ
Sea/NNP
Containers/NNPS
might/MD
raise/VB
its/PRP$
price/NN
./.
Mr./NNP
Sherwood/NNP
speculated/VBD
that/IN
the/DT
leeway/NN
that/IN
Sea/NNP
Containers/NNPS
has/VBZ
means/VBZ
that/DT
Temple/NNP
would/MD
have/VB
to/TO
``/``
substantially/RB
increase/VB
their/PRP$
bid/NN
if/IN
they/PRP
're/VBP
going/VBG
to/TO
top/VB
us/PRP
./.
''/''
Temple/NNP
,/,
however/RB
,/,
harshly/RB
criticized/VBD
Sea/NNP
Containers/NNPS
'/POS
plan/NN
yesterday/NN
,/,
characterizing/VBG
it/PRP
as/IN
a/DT
``/``
highly/RB
conditional/JJ
device/NN
designed/VBN
to/TO
entrench/VB
management/NN
,/,
confuse/VB
shareholders/NNS
and/CC
prevent/VB
them/PRP
from/IN
accepting/VBG
our/PRP$
superior/JJ
cash/NN
offer/NN
./.
''/''
A/DT
spokesman/NN
for/IN
Temple/NNP
estimated/VBD
that/IN
Sea/NNP
Containers/NNPS
'/POS
plan/NN
--/:
if/IN
all/PDT
the/DT
asset/NN
sales/NNS
materialize/VBP
--/:
would/MD
result/VB
in/IN
shareholders/NNS
receiving/VBG
only/RB
$/$
36/CD
to/TO
$/$
45/CD
a/DT
share/NN
in/IN
cash/NN
./.
The/DT
lower/JJR
figures/NNS
,/,
the/DT
spokesman/NN
said/VBD
,/,
would/MD
stem/VB
from/IN
preferred/VBN
shares/NNS
being/VBG
converted/VBN
to/TO
common/JJ
stock/NN
and/CC
the/DT
possibility/NN
that/IN
Sea/NNP
Containers/NNPS
'/POS
subsidiaries/NNS
might/MD
be/VB
required/VBN
to/TO
place/VB
their/PRP$
shares/NNS
in/IN
the/DT
open/JJ
market/NN
./.
Temple/NNP
added/VBD
that/IN
Sea/NNP
Containers/NNPS
is/VBZ
still/RB
mired/VBN
in/IN
legal/JJ
problems/NNS
in/IN
Bermuda/NNP
,/,
where/WRB
the/DT
Supreme/NNP
Court/NNP
has/VBZ
temporarily/RB
barred/VBN
Sea/NNP
Containers/NNPS
from/IN
buying/VBG
back/RB
its/PRP$
own/JJ
stock/NN
in/IN
a/DT
case/NN
brought/VBN
by/IN
Stena/NNP
and/CC
Tiphook/NNP
./.
The/DT
court/NN
has/VBZ
indicated/VBN
it/PRP
will/MD
rule/VB
on/IN
the/DT
case/NN
by/IN
the/DT
end/NN
of/IN
the/DT
month/NN
./.
Temple/NNP
also/RB
said/VBD
Sea/NNP
Containers/NNPS
'/POS
plan/NN
raises/VBZ
``/``
numerous/JJ
legal/JJ
,/,
regulatory/JJ
,/,
financial/JJ
and/CC
fairness/NN
issues/NNS
,/,
''/''
but/CC
did/VBD
n't/RB
elaborate/VB
./.
Mr./NNP
Sherwood/NNP
said/VBD
reaction/NN
to/TO
Sea/NNP
Containers/NNPS
'/POS
proposal/NN
has/VBZ
been/VBN
``/``
very/RB
positive/JJ
./.
''/''
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
Sea/NNP
Containers/NNPS
closed/VBD
at/IN
$/$
62.625/CD
,/,
up/RB
62.5/CD
cents/NNS
./.
The/DT
Transportation/NNP
Department/NNP
,/,
responding/VBG
to/TO
pressure/NN
from/IN
safety/NN
advocates/NNS
,/,
took/VBD
further/JJ
steps/NNS
to/TO
impose/VB
on/IN
light/JJ
trucks/NNS
and/CC
vans/NNS
the/DT
safety/NN
requirements/NNS
used/VBN
for/IN
automobiles/NNS
./.
The/DT
department/NN
proposed/VBD
requiring/VBG
stronger/JJR
roofs/NNS
for/IN
light/JJ
trucks/NNS
and/CC
minivans/NNS
,/,
beginning/VBG
with/IN
1992/CD
models/NNS
./.
It/PRP
also/RB
issued/VBD
a/DT
final/JJ
rule/NN
requiring/VBG
auto/NN
makers/NNS
to/TO
equip/VB
light/JJ
trucks/NNS
and/CC
minivans/NNS
with/IN
lap-shoulder/JJ
belts/NNS
for/IN
rear/JJ
seats/NNS
beginning/VBG
in/IN
the/DT
1992/CD
model/NN
year/NN
./.
Such/JJ
belts/NNS
already/RB
are/VBP
required/VBN
for/IN
the/DT
vehicles/NNS
'/POS
front/JJ
seats/NNS
./.
``/``
Today/NN
's/POS
action/NN
,/,
''/''
Transportation/NNP
Secretary/NNP
Samuel/NNP
Skinner/NNP
said/VBD
,/,
``/``
represents/VBZ
another/DT
milestone/NN
in/IN
the/DT
ongoing/JJ
program/NN
to/TO
promote/VB
vehicle/NN
occupant/NN
safety/NN
in/IN
light/JJ
trucks/NNS
and/CC
minivans/NNS
through/IN
its/PRP$
extension/NN
of/IN
passenger/NN
car/NN
standards/NNS
./.
''/''
In/IN
September/NNP
,/,
the/DT
department/NN
had/VBD
said/VBN
it/PRP
will/MD
require/VB
trucks/NNS
and/CC
minivans/NNS
to/TO
be/VB
equipped/VBN
with/IN
the/DT
same/JJ
front-seat/NN
headrests/NNS
that/WDT
have/VBP
long/RB
been/VBN
required/VBN
on/IN
passenger/NN
cars/NNS
./.
The/DT
Big/NNP
Three/NNP
auto/NN
makers/NNS
said/VBD
the/DT
rule/NN
changes/NNS
were/VBD
n't/RB
surprising/JJ
because/IN
Bush/NNP
administration/NN
officials/NNS
have/VBP
long/RB
said/VBN
they/PRP
planned/VBD
to/TO
impose/VB
car/NN
safety/NN
standards/NNS
on/IN
light/JJ
trucks/NNS
and/CC
vans/NNS
./.
Safety/NN
advocates/NNS
,/,
including/VBG
some/DT
members/NNS
of/IN
Congress/NNP
,/,
have/VBP
been/VBN
urging/VBG
the/DT
department/NN
for/IN
years/NNS
to/TO
extend/VB
car-safety/JJ
requirements/NNS
to/TO
light/JJ
trucks/NNS
and/CC
vans/NNS
,/,
which/WDT
now/RB
account/VBP
for/IN
almost/RB
one-third/NN
of/IN
all/DT
vehicle/NN
sales/NNS
in/IN
the/DT
U.S/NNP
./.
They/PRP
say/VBP
that/IN
many/JJ
vehicles/NNS
classed/VBN
as/IN
commercial/JJ
light/JJ
trucks/NNS
actually/RB
carry/VBP
more/JJR
people/NNS
than/IN
cargo/NN
and/CC
therefore/RB
should/MD
have/VB
the/DT
same/JJ
safety/NN
features/NNS
as/IN
cars/NNS
./.
They/PRP
did/VBD
n't/RB
have/VB
much/JJ
luck/NN
during/IN
the/DT
Reagan/NNP
administration/NN
./.
``/``
But/CC
now/RB
,/,
there/EX
seems/VBZ
to/TO
be/VB
a/DT
fairly/RB
systematic/JJ
effort/NN
to/TO
address/VB
the/DT
problem/NN
,/,
''/''
said/VBD
Chuck/NNP
Hurley/NNP
,/,
vice/NN
president/NN
of/IN
communications/NNS
for/IN
the/DT
Insurance/NNP
Institute/NNP
for/IN
Highway/NNP
Safety/NNP
./.
``/``
We/PRP
're/VBP
in/IN
a/DT
very/RB
different/JJ
regulatory/JJ
environment/NN
./.
''/''
Sen./NNP
John/NNP
Danforth/NNP
R./NNP
,/,
Mo/NNP
./.
the/DT
department/NN
's/POS
actions/NNS
,/,
noting/VBG
that/IN
rollover/NN
crashes/NNS
account/VBP
for/IN
almost/RB
half/DT
of/IN
all/DT
light-truck/JJ
deaths/NNS
./.
``/``
We/PRP
could/MD
prevent/VB
many/JJ
of/IN
these/DT
fatalities/NNS
with/IN
minimum/JJ
roof-crush/JJ
standards/NNS
,/,
''/''
he/PRP
said/VBD
./.
Sen./NNP
Danforth/NNP
and/CC
others/NNS
also/RB
want/VBP
the/DT
department/NN
to/TO
require/VB
additional/JJ
safety/NN
equipment/NN
in/IN
light/JJ
trucks/NNS
and/CC
minivans/NNS
,/,
including/VBG
air/NN
bags/NNS
or/CC
automatic/JJ
seat/NN
belts/NNS
in/IN
front/JJ
seats/NNS
and/CC
improved/VBN
side-crash/JJ
protection/NN
./.
The/DT
department/NN
's/POS
roof-crush/JJ
proposal/NN
would/MD
apply/VB
to/TO
vehicles/NNS
weighing/VBG
10,000/CD
pounds/NNS
or/CC
less/JJR
./.
The/DT
roofs/NNS
would/MD
be/VB
required/VBN
to/TO
withstand/VB
a/DT
force/NN
of/IN
1.5/CD
times/NNS
the/DT
unloaded/JJ
weight/NN
of/IN
the/DT
vehicle/NN
./.
During/IN
the/DT
test/NN
,/,
the/DT
roof/NN
could/MD
n't/RB
be/VB
depressed/VBN
more/RBR
than/IN
five/CD
inches/NNS
./.
In/IN
Detroit/NNP
,/,
a/DT
Chrysler/NNP
Corp./NNP
official/NN
said/VBD
the/DT
company/NN
currently/RB
has/VBZ
no/DT
rear-seat/NN
lap/NN
and/CC
shoulder/NN
belts/NNS
in/IN
its/PRP$
light/JJ
trucks/NNS
,/,
but/CC
plans/VBZ
to/TO
begin/VB
phasing/VBG
them/PRP
in/IN
by/IN
the/DT
end/NN
of/IN
the/DT
1990/CD
model/NN
year/NN
./.
He/PRP
said/VBD
Chrysler/NNP
fully/RB
expects/VBZ
to/TO
have/VB
them/PRP
installed/VBN
across/IN
its/PRP$
light-truck/JJ
line/NN
by/IN
the/DT
Sept./NNP
1/CD
,/,
1991/CD
,/,
deadline/NN
./.
Chrysler/NNP
said/VBD
its/PRP$
trucks/NNS
and/CC
vans/NNS
already/RB
meet/VBP
the/DT
roof-crush/JJ
resistance/NN
standard/NN
for/IN
cars/NNS
./.
John/NNP
Leinonen/NNP
,/,
executive/JJ
engineer/NN
of/IN
Ford/NNP
Motor/NNP
Co./NNP
's/POS
auto-safety/JJ
office/NN
,/,
said/VBD
Ford/NNP
trucks/NNS
have/VBP
met/VBN
car/NN
standards/NNS
for/IN
roof-crush/JJ
resistance/NN
since/IN
1982/CD
./.
Ford/NNP
began/VBD
installing/VBG
the/DT
rear-seat/NN
belts/NNS
in/IN
trucks/NNS
with/IN
its/PRP$
F-series/NNPS
Crew/NNP
Cab/NNP
pickups/NNS
in/IN
the/DT
1989/CD
model/NN
year/NN
./.
The/DT
new/JJ
Explorer/NNP
sport-utility/JJ
vehicle/NN
,/,
set/VBN
for/IN
introduction/NN
next/IN
spring/NN
,/,
will/MD
also/RB
have/VB
the/DT
rear-seat/NN
belts/NNS
./.
Mr./NNP
Leinonen/NNP
said/VBD
he/PRP
expects/VBZ
Ford/NNP
to/TO
meet/VB
the/DT
deadline/NN
easily/RB
./.
Consolidated/NNP
Rail/NNP
Corp./NNP
said/VBD
it/PRP
would/MD
spend/VB
more/RBR
than/IN
$/$
30/CD
million/CD
on/IN
1,000/CD
enclosed/VBN
railcars/NNS
for/IN
transporting/VBG
autos/NNS
./.
The/DT
multilevel/JJ
railcars/NNS
,/,
scheduled/VBN
for/IN
delivery/NN
in/IN
1990/CD
,/,
will/MD
be/VB
made/VBN
by/IN
Thrall/NNP
Manufacturing/NNP
Co./NNP
,/,
a/DT
Chicago/NNP
Heights/NNP
,/,
Ill./NNP
,/,
division/NN
of/IN
closely/RB
held/VBN
Duchossois/NNP
Industries/NNPS
Inc./NNP
,/,
Elmhurst/NNP
,/,
Ill/NNP
./.
This/DT
year/NN
,/,
the/DT
railroad/NN
holding/VBG
company/NN
acquired/VBN
850/CD
such/JJ
railcars/NNS
./.
Sir/NNP
Peter/NNP
Walters/NNP
,/,
58-year-old/JJ
chairman/NN
of/IN
British/NNP
Petroleum/NNP
Co./NNP
until/IN
next/JJ
March/NNP
,/,
joins/VBZ
the/DT
board/NN
of/IN
this/DT
cement/NN
products/NNS
company/NN
on/IN
Dec./NNP
1/CD
./.
Sir/NNP
Peter/NNP
will/MD
succeed/VB
Sir/NNP
John/NNP
Milne/NNP
,/,
65/CD
,/,
who/WP
retires/VBZ
as/IN
Blue/NNP
Circle/NNP
nonexecutive/JJ
chairman/NN
on/IN
June/NNP
1/CD
./.
Bank/NNP
of/IN
New/NNP
England/NNP
Corp./NNP
said/VBD
it/PRP
has/VBZ
held/VBN
talks/NNS
with/IN
potential/JJ
merger/NN
partners/NNS
outside/IN
New/NNP
England/NNP
,/,
although/IN
it/PRP
added/VBD
that/IN
nothing/NN
is/VBZ
imminent/JJ
and/CC
it/PRP
has/VBZ
n't/RB
received/VBN
any/DT
formal/JJ
offers/NNS
./.
The/DT
discussions/NNS
were/VBD
disclosed/VBN
as/IN
the/DT
bank/NN
holding/VBG
company/NN
said/VBD
that/IN
it/PRP
has/VBZ
dropped/VBN
its/PRP$
longstanding/JJ
opposition/NN
to/TO
full/JJ
interstate/JJ
banking/NN
bills/NNS
in/IN
Connecticut/NNP
and/CC
in/IN
Massachusetts/NNP
./.
Later/JJ
yesterday/NN
,/,
a/DT
Massachusetts/NNP
senate/NN
committee/NN
approved/VBD
a/DT
bill/NN
to/TO
allow/VB
national/JJ
interstate/JJ
banking/NN
by/IN
banks/NNS
in/IN
the/DT
state/NN
beginning/NN
in/IN
1991/CD
./.
Currently/RB
,/,
both/DT
Massachusetts/NNP
and/CC
Connecticut/NNP
,/,
where/WRB
most/RBS
of/IN
Bank/NNP
of/IN
New/NNP
England/NNP
's/POS
operations/NNS
are/VBP
,/,
allow/VBP
interstate/JJ
banking/NN
only/RB
within/IN
New/NNP
England/NNP
./.
Richard/NNP
Driscoll/NNP
,/,
vice/NN
chairman/NN
of/IN
Bank/NNP
of/IN
New/NNP
England/NNP
,/,
told/VBD
the/DT
Dow/NNP
Jones/NNP
Professional/NNP
Investor/NNP
Report/NNP
,/,
``/``
Certainly/RB
,/,
there/EX
are/VBP
those/DT
outside/IN
the/DT
region/NN
who/WP
think/VBP
of/IN
us/PRP
prospectively/RB
as/IN
a/DT
good/JJ
partner/NN
./.
We/PRP
have/VBP
,/,
and/CC
I/PRP
'm/VBP
sure/JJ
others/NNS
have/VBP
,/,
considered/VBN
what/WP
our/PRP$
options/NNS
are/VBP
,/,
and/CC
we/PRP
've/VBP
had/VBN
conversations/NNS
with/IN
people/NNS
who/WP
in/IN
the/DT
future/NN
might/MD
prove/VB
to/TO
be/VB
interesting/JJ
partners/NNS
./.
''/''
He/PRP
added/VBD
,/,
``/``
There/EX
's/VBZ
nothing/NN
very/RB
hot/JJ
./.
''/''
Mr./NNP
Driscoll/NNP
did/VBD
n't/RB
elaborate/JJ
about/IN
who/WP
the/DT
potential/JJ
partners/NNS
were/VBD
or/CC
when/WRB
the/DT
talks/NNS
were/VBD
held/VBN
./.
A/DT
bank/NN
spokeswoman/NN
also/RB
declined/VBD
to/TO
comment/VB
on/IN
any/DT
merger-related/JJ
matters/NNS
,/,
but/CC
said/VBD
the/DT
company/NN
decided/VBD
to/TO
drop/VB
its/PRP$
opposition/NN
to/TO
the/DT
interstate/JJ
banking/NN
legislation/NN
because/IN
``/``
prevailing/VBG
sentiment/NN
is/VBZ
in/IN
favor/NN
of/IN
passage/NN
./.
''/''
Bank/NNP
of/IN
New/NNP
England/NNP
has/VBZ
been/VBN
hit/VBN
hard/RB
by/IN
the/DT
region/NN
's/POS
real-estate/JJ
slump/NN
,/,
with/IN
its/PRP$
net/JJ
income/NN
declining/VBG
42/CD
%/NN
to/TO
$/$
121.6/CD
million/CD
,/,
or/CC
61/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
1989/CD
from/IN
the/DT
year-earlier/JJ
period/NN
./.
The/DT
company/NN
recently/RB
said/VBD
it/PRP
would/MD
sell/VB
some/DT
operations/NNS
and/CC
lay/VBD
off/IN
4/CD
%/NN
of/IN
its/PRP$
work/NN
force/NN
,/,
altogether/RB
reducing/VBG
employment/NN
to/TO
less/RBR
than/IN
16,000/CD
from/IN
about/IN
18,000/CD
./.
It/PRP
recently/RB
signed/VBD
a/DT
preliminary/JJ
agreement/NN
to/TO
negotiate/VB
exclusively/RB
with/IN
the/DT
Bank/NNP
of/IN
Tokyo/NNP
Ltd./NNP
for/IN
the/DT
sale/NN
of/IN
part/NN
of/IN
its/PRP$
leasing/NN
business/NN
to/TO
the/DT
Japanese/JJ
bank/NN
./.
GOODY/NNP
PRODUCTS/NNP
Inc./NNP
cut/VBD
its/PRP$
quarterly/JJ
dividend/NN
to/TO
five/CD
cents/NNS
a/DT
share/NN
from/IN
11.5/CD
cents/NNS
a/DT
share/NN
./.
The/DT
reduced/VBN
dividend/NN
is/VBZ
payable/JJ
Jan./NNP
2/CD
to/TO
stock/NN
of/IN
record/NN
Dec./NNP
15/CD
./.
The/DT
Kearny/NNP
,/,
N.J.-based/JJ
maker/NN
of/IN
hair/NN
accessories/NNS
and/CC
other/JJ
cosmetic/NN
products/NNS
said/VBD
it/PRP
cut/VBD
the/DT
dividend/NN
due/JJ
to/TO
its/PRP$
third-quarter/NN
loss/NN
of/IN
$/$
992,000/CD
,/,
or/CC
15/CD
cents/NNS
a/DT
share/NN
./.
In/IN
the/DT
year-ago/JJ
quarter/NN
,/,
the/DT
company/NN
reported/VBD
net/JJ
income/NN
of/IN
$/$
1.9/CD
million/CD
,/,
or/CC
29/CD
cents/NNS
a/DT
share/NN
./.
The/DT
company/NN
also/RB
adopted/VBD
an/DT
anti-takeover/JJ
plan/NN
./.
Michael/NNP
Henderson/NNP
,/,
51-year-old/JJ
group/NN
chief/NN
executive/NN
of/IN
this/DT
U.K./NNP
metals/NNS
and/CC
industrial/JJ
materials/NNS
maker/NN
,/,
will/MD
become/VB
chairman/NN
in/IN
May/NNP
,/,
succeeding/VBG
Ian/NNP
Butler/NNP
,/,
64/CD
,/,
who/WP
is/VBZ
retiring/VBG
./.
Mr./NNP
Butler/NNP
will/MD
remain/VB
on/IN
the/DT
board/NN
as/IN
a/DT
nonexecutive/JJ
director/NN
./.
Rally/NNP
's/POS
Inc./NNP
said/VBD
it/PRP
has/VBZ
redeemed/VBN
its/PRP$
rights/NNS
outstanding/JJ
issued/VBN
Monday/NNP
in/IN
its/PRP$
shareholder/NN
rights/NNS
plan/NN
./.
The/DT
company/NN
said/VBD
holders/NNS
of/IN
stock/NN
of/IN
record/NN
Nov./NNP
10/CD
will/MD
receive/VB
1\/10th/NN
of/IN
one/CD
cent/NN
a/DT
share/NN
as/IN
the/DT
redemption/NN
payment/NN
./.
The/DT
fast-food/NN
company/NN
said/VBD
its/PRP$
decision/NN
was/VBD
based/VBN
upon/IN
discussions/NNS
with/IN
a/DT
shareholder/NN
group/NN
,/,
Giant/NNP
Group/NNP
Ltd./NNP
,/,
``/``
in/IN
an/DT
effort/NN
to/TO
resolve/VB
certain/JJ
disputes/NNS
with/IN
the/DT
company/NN
./.
''/''
Giant/NNP
Group/NNP
is/VBZ
led/VBN
by/IN
three/CD
Rally/NNP
's/POS
directors/NNS
,/,
Burt/NNP
Sugarman/NNP
,/,
James/NNP
M./NNP
Trotter/NNP
III/NNP
and/CC
William/NNP
E./NNP
Trotter/NNP
II/NNP
,/,
who/WP
last/JJ
month/NN
indicated/VBD
they/PRP
hold/VBP
a/DT
42.5/CD
%/NN
stake/NN
in/IN
Rally/NNP
's/POS
and/CC
plan/VBP
to/TO
seek/VB
a/DT
majority/NN
of/IN
seats/NNS
on/IN
Rally/NNP
's/POS
nine-member/JJ
board/NN
./.
When/WRB
Warren/NNP
Winiarski/NNP
,/,
proprietor/NN
of/IN
Stag/NNP
's/POS
Leap/NNP
Wine/NNP
Cellars/NNP
in/IN
Napa/NNP
Valley/NNP
,/,
announced/VBD
a/DT
$/$
75/CD
price/NN
tag/NN
for/IN
his/PRP$
1985/CD
Cask/NNP
23/CD
Cabernet/NNP
this/DT
fall/NN
,/,
few/JJ
wine/NN
shops/NNS
and/CC
restaurants/NNS
around/IN
the/DT
country/NN
balked/VBD
./.
``/``
This/DT
is/VBZ
the/DT
peak/NN
of/IN
my/PRP$
wine-making/NN
experience/NN
,/,
''/''
Mr./NNP
Winiarski/NNP
declared/VBD
when/WRB
he/PRP
introduced/VBD
the/DT
wine/NN
at/IN
a/DT
dinner/NN
in/IN
New/NNP
York/NNP
,/,
``/``
and/CC
I/PRP
wanted/VBD
to/TO
single/VB
it/PRP
out/RP
as/RB
such/JJ
./.
''/''
It/PRP
is/VBZ
in/IN
my/PRP$
estimation/NN
the/DT
best/JJS
wine/NN
Stag/NNP
's/POS
Leap/NNP
has/VBZ
produced/VBN
,/,
and/CC
with/IN
fewer/JJR
than/IN
700/CD
cases/NNS
available/JJ
,/,
it/PRP
is/VBZ
sure/JJ
to/TO
sell/VB
quickly/RB
./.
The/DT
price/NN
is/VBZ
a/DT
new/JJ
high/NN
for/IN
California/NNP
Cabernet/NNP
Sauvignon/NNP
,/,
but/CC
it/PRP
is/VBZ
not/RB
the/DT
highest/JJS
./.
Diamond/NNP
Creek/NNP
1985/CD
Lake/NNP
Vineyard/NNP
Cabernet/NNP
weighed/VBD
in/RP
this/DT
fall/NN
with/IN
a/DT
sticker/NN
price/NN
of/IN
$/$
100/CD
a/DT
bottle/NN
./.
One/CD
of/IN
the/DT
fastest/JJS
growing/VBG
segments/NNS
of/IN
the/DT
wine/NN
market/NN
is/VBZ
the/DT
category/NN
of/IN
superpremiums/NNS
--/:
wines/NN
limited/VBN
in/IN
production/NN
,/,
of/IN
exceptional/JJ
quality/NN
any/DT
rate/NN
high/JJ
prices/NNS
./.
For/IN
years/NNS
,/,
this/DT
group/NN
included/VBD
a/DT
stable/NN
of/IN
classics/NNS
--/:
Bordeaux/NNP
first/JJ
growths/NNS
Lafite-Rothschild/NNP
,/,
Latour/NNP
,/,
Haut-Brion/NNP
,/,
Petrus/NNP
Grand/NNP
Cru/NNP
Burgundies/NNPS
Romanee-Conti/NNP
and/CC
La/NNP
Tache/NNP
deluxe/JJ
Champagnes/NNS
Dom/NNP
Perignon/NNP
or/CC
Roederer/NNP
Cristal/NNP
sweet/JJ
wines/NNS
Chateau/NNP
Yquem/NNP
or/CC
Trockenbeerenauslesen/NNP
Rieslings/NNPS
from/IN
Germany/NNP
,/,
and/CC
Biondi-Santi/NNP
Brunello/NNP
Riserva/NNP
from/IN
Tuscany/NNP
These/DT
first/JJ
magnitude/NN
wines/NNS
ranged/VBD
in/IN
price/NN
from/IN
$/$
40/CD
to/TO
$/$
125/CD
a/DT
bottle/NN
./.
In/IN
the/DT
last/JJ
year/NN
or/CC
so/RB
,/,
however/RB
,/,
this/DT
exclusive/JJ
club/NN
has/VBZ
taken/VBN
in/IN
a/DT
host/NN
of/IN
flashy/JJ
new/JJ
members/NNS
./.
The/DT
classics/NNS
have/VBP
zoomed/VBN
in/IN
price/NN
to/TO
meet/VB
the/DT
competition/NN
,/,
and/CC
it/PRP
almost/RB
seems/VBZ
that/IN
there/EX
's/VBZ
a/DT
race/NN
on/RB
to/TO
come/VB
up/RP
with/IN
the/DT
priciest/JJS
single/JJ
bottle/NN
,/,
among/IN
current/JJ
releases/NNS
from/IN
every/DT
major/JJ
wine/NN
region/NN
on/IN
the/DT
globe/NN
./.
France/NNP
can/MD
boast/VB
the/DT
lion/NN
's/POS
share/NN
of/IN
high-priced/JJ
bottles/NNS
./.
Bordeaux/NNP
's/POS
first/JJ
growths/NNS
from/IN
1985/CD
and/CC
1986/CD
are/VBP
$/$
60/CD
to/TO
$/$
80/CD
each/DT
the/DT
smallest/JJS
in/IN
terms/NNS
of/IN
production/NN
,/,
Chateau/NNP
Petrus/NNP
,/,
which/WDT
costs/VBZ
around/RB
$/$
250/CD
!/.
These/DT
prices/NNS
seem/VBP
rather/RB
modest/JJ
,/,
however/RB
,/,
in/IN
light/NN
of/IN
other/JJ
French/JJ
wines/NNS
from/IN
current/JJ
vintages/NNS
./.
Chateau/NNP
Yquem/NNP
,/,
the/DT
leading/VBG
Sauternes/NNP
,/,
now/RB
goes/VBZ
for/IN
well/RB
over/RB
$/$
100/CD
a/DT
bottle/NN
for/IN
a/DT
lighter/JJR
vintage/NN
like/IN
1984/CD
;/:
the/DT
spectacularly/RB
rich/JJ
1983/CD
runs/VBZ
$/$
179/CD
./.
In/IN
Champagne/NNP
,/,
some/DT
of/IN
the/DT
prestige/NN
cuvees/NNS
are/VBP
inching/VBG
toward/IN
$/$
100/CD
a/DT
bottle/NN
./.
The/DT
first/JJ
Champagne/NNP
to/TO
crack/VB
that/DT
price/NN
barrier/NN
was/VBD
the/DT
1979/CD
Salon/NNP
de/IN
Mesnil/NNP
Blanc/NNP
de/IN
Blancs/NNP
./.
The/DT
'82/CD
Salon/NNP
is/VBZ
$/$
115/CD
./.
Roederer/NNP
Cristal/NNP
at/IN
$/$
90/CD
a/DT
bottle/NN
sells/VBZ
out/RP
around/IN
the/DT
country/NN
and/CC
Taittinger/NNP
's/POS
Comtes/NNP
de/IN
Champagne/NNP
Blanc/NNP
de/IN
Blancs/NNP
is/VBZ
encroaching/VBG
upon/IN
that/DT
level/NN
./.
The/DT
great/JJ
reds/NNS
of/IN
the/DT
Rhone/NNP
Valley/NNP
have/VB
soared/VBN
in/IN
price/NN
as/RB
well/RB
./.
E./NNP
Guigal/NNP
's/POS
1982/CD
Cote/NNP
Rotie/NNP
La/NNP
Landonne/NNP
,/,
for/IN
example/NN
,/,
is/VBZ
$/$
120/CD
./.
None/NNP
of/IN
France/NNP
's/POS
wine/NN
regions/NNS
can/MD
steal/VB
a/DT
march/NN
on/IN
Burgundy/NNP
,/,
however/RB
./.
The/DT
six/CD
wines/NNS
of/IN
the/DT
Domaine/NNP
de/IN
la/DT
Romanee-Conti/NNP
,/,
72/CD
of/IN
the/DT
most/RBS
precious/JJ
acres/NNS
of/IN
vineyard/NN
anywhere/RB
in/IN
the/DT
world/NN
,/,
have/VB
commanded/VBN
three-digit/JJ
price/NN
tags/NNS
for/IN
several/JJ
years/NNS
now/RB
./.
With/IN
the/DT
1985/CD
vintage/NN
,/,
they/PRP
soared/VBD
higher/RBR
:/:
La/NNP
Tache/NNP
,/,
$/$
195/CD
;/:
Richebourg/NNP
,/,
$/$
180/CD
;/:
Romanee-Conti/NNP
,/,
$/$
225/CD
./.
Another/DT
small/JJ
Burgundy/NNP
estate/NN
,/,
Coche-Dury/NNP
,/,
has/VBZ
just/RB
offered/VBN
its/PRP$
1987/CD
Corton-Charlemagne/NNP
for/IN
$/$
155/CD
./.
From/IN
Italy/NNP
there/RB
is/VBZ
Angelo/NNP
Gaja/NNP
Barbaresco/NNP
at/IN
$/$
125/CD
a/DT
bottle/NN
,/,
Piero/NNP
Antinori/NNP
's/POS
La/NNP
Solaia/NNP
,/,
a/DT
$/$
90/CD
Cabernet/NNP
from/IN
Tuscany/NNP
,/,
and/CC
Biondi-Santi/NNP
Brunello/NNP
at/IN
$/$
98/CD
./.
Spain/NNP
's/POS
Vega/NNP
Secilia/NNP
Unico/NNP
1979/CD
its/PRP$
10th/JJ
year/NN
$/$
70/CD
,/,
as/IN
is/VBZ
Australia/NNP
's/POS
Grange/NNP
Hermitage/NNP
1982/CD
./.
``/``
There/EX
are/VBP
certain/JJ
cult/NN
wines/NNS
that/WDT
can/MD
command/VB
these/DT
higher/JJR
prices/NNS
,/,
''/''
says/VBZ
Larry/NNP
Shapiro/NNP
of/IN
Marty/NNP
's/POS
,/,
one/CD
of/IN
the/DT
largest/JJS
wine/NN
shops/NNS
in/IN
Dallas/NNP
./.
``/``
What/WP
's/VBZ
different/JJ
is/VBZ
that/IN
it/PRP
is/VBZ
happening/VBG
with/IN
young/JJ
wines/NNS
just/RB
coming/VBG
out/RP
./.
We/PRP
're/VBP
seeing/VBG
it/PRP
partly/RB
because/IN
older/JJR
vintages/NNS
are/VBP
growing/VBG
more/RBR
scarce/JJ
./.
''/''
Wine/NN
auctions/NNS
have/VBP
almost/RB
exhausted/VBN
the/DT
limited/VBN
supply/NN
of/IN
those/DT
wines/NNS
,/,
Mr./NNP
Shapiro/NNP
continued/VBD
:/:
``/``
We/PRP
've/VBP
seen/VBN
a/DT
dramatic/JJ
decrease/NN
in/IN
demand/NN
for/IN
wines/NNS
from/IN
the/DT
'40s/CD
and/CC
'50s/CD
,/,
which/WDT
go/VBP
for/IN
$/$
300/CD
to/TO
$/$
400/CD
a/DT
bottle/NN
./.
Some/DT
of/IN
the/DT
newer/JJR
wines/NNS
,/,
even/RB
at/IN
$/$
90/CD
to/TO
$/$
100/CD
a/DT
bottle/NN
or/CC
so/RB
,/,
almost/RB
offer/VBP
a/DT
bargain/NN
./.
''/''
Take/VB
Lake/NNP
Vineyard/NNP
Cabernet/NNP
from/IN
Diamond/NNP
Creek/NNP
./.
It/PRP
's/VBZ
made/VBN
only/RB
in/IN
years/NNS
when/WRB
the/DT
grapes/NNS
ripen/VBP
perfectly/RB
(/(
the/DT
last/NN
was/VBD
1979/CD
a/DT
single/JJ
acre/NN
of/IN
grapes/NNS
that/WDT
yielded/VBD
a/DT
mere/JJ
75/CD
cases/NNS
in/IN
1987/CD
./.
Owner/NNP
Al/NNP
Brownstein/NNP
originally/RB
planned/VBD
to/TO
sell/VB
it/PRP
for/IN
$/$
60/CD
a/DT
bottle/NN
,/,
but/CC
when/WRB
a/DT
retailer/NN
in/IN
Southern/NNP
California/NNP
asked/VBD
,/,
``/``
Is/VBZ
that/DT
wholesale/JJ
or/CC
retail/JJ
?/.
''/''
he/PRP
re-thought/JJ
the/DT
matter/NN
./.
Offering/VBG
the/DT
wine/NN
at/IN
roughly/RB
$/$
65/CD
a/DT
bottle/NN
wholesale/NN
$/$
100/CD
retail/NN
he/PRP
sent/VBD
merchants/NNS
around/IN
the/DT
country/NN
a/DT
form/NN
asking/VBG
them/PRP
to/TO
check/VB
one/CD
of/IN
three/CD
answers/NNS
:/:
1/LS
the/DT
wine/NN
is/VBZ
too/RB
high/JJ
(/(
2/CD
responses/NNS
2/LS
it/PRP
's/VBZ
high/JJ
but/CC
I/PRP
'll/MD
take/VB
it/PRP
2/CD
responses/NNS
3/LS
I/PRP
'll/MD
take/VB
all/DT
I/PRP
can/MD
get/VB
(/(
58/CD
responses/NNS
The/DT
wine/NN
was/VBD
shipped/VBN
in/IN
six-bottle/JJ
cases/NNS
instead/RB
of/IN
the/DT
usual/JJ
12/CD
,/,
but/CC
even/RB
at/IN
that/IN
it/PRP
was/VBD
spread/VBN
thin/JJ
,/,
going/VBG
to/TO
62/CD
retailers/NNS
in/IN
28/CD
states/NNS
./.
``/``
We/PRP
thought/VBD
it/PRP
was/VBD
awfully/RB
expensive/JJ
,/,
''/''
said/VBD
Sterling/NNP
Pratt/NNP
,/,
wine/NN
director/NN
at/IN
Schaefer/NNP
's/POS
in/IN
Skokie/NNP
,/,
Ill./NNP
,/,
one/CD
of/IN
the/DT
top/JJ
stores/NNS
in/IN
suburban/JJ
Chicago/NNP
,/,
``/``
but/CC
there/EX
are/VBP
people/NNS
out/IN
there/RB
with/IN
very/RB
different/JJ
opinions/NNS
of/IN
value/NN
./.
We/PRP
got/VBD
our/PRP$
two/CD
six-packs/NNS
--/:
and/CC
they/PRP
're/VBP
gone/VBN
./.
''/''
Mr./NNP
Pratt/NNP
remarked/VBD
that/IN
he/PRP
thinks/VBZ
steeper/JJR
prices/NNS
have/VBP
come/VBN
about/RP
because/IN
producers/NNS
do/VBP
n't/RB
like/VB
to/TO
see/VB
a/DT
hit/NN
wine/NN
dramatically/RB
increase/VB
in/IN
price/NN
later/JJ
on/RP
./.
Even/RB
if/IN
there/EX
is/VBZ
consumer/NN
resistance/NN
at/IN
first/JJ
,/,
a/DT
wine/NN
that/WDT
wins/VBZ
high/JJ
ratings/NNS
from/IN
the/DT
critics/NNS
will/MD
eventually/RB
move/VB
./.
``/``
There/EX
may/MD
be/VB
sticker-shock/NN
reaction/NN
initially/RB
,/,
''/''
said/VBD
Mr./NNP
Pratt/NNP
,/,
``/``
but/CC
as/IN
the/DT
wine/NN
is/VBZ
talked/VBN
about/IN
and/CC
starts/VBZ
to/TO
sell/VB
,/,
they/PRP
eventually/RB
get/VB
excited/VBN
and/CC
decide/VB
it/PRP
's/VBZ
worth/JJ
the/DT
astronomical/JJ
price/NN
to/TO
add/VB
it/PRP
to/TO
their/PRP$
collection/NN
./.
''/''
``/``
It/PRP
's/VBZ
just/RB
sort/NN
of/IN
a/DT
one-upsmanship/NN
thing/NN
with/IN
some/DT
people/NNS
,/,
''/''
added/VBD
Larry/NNP
Shapiro/NNP
./.
``/``
They/PRP
like/VBP
to/TO
talk/VB
about/IN
having/VBG
the/DT
new/JJ
Red/NNP
Rock/NNP
Terrace/NNP
{/(
one/CD
of/IN
Diamond/NNP
Creek/NNP
's/POS
Cabernets/NNPS
the/DT
Dunn/NNP
1985/CD
Cabernet/NNP
,/,
or/CC
the/DT
Petrus/NNP
./.
Producers/NNS
have/VBP
seen/VBN
this/DT
market/NN
opening/VBG
up/RP
and/CC
they/PRP
're/VBP
now/RB
creating/VBG
wines/NNS
that/WDT
appeal/VBP
to/TO
these/DT
people/NNS
./.
''/''
That/DT
explains/VBZ
why/WRB
the/DT
number/NN
of/IN
these/DT
wines/NNS
is/VBZ
expanding/VBG
so/RB
rapidly/RB
./.
But/CC
consumers/NNS
who/WP
buy/VBP
at/IN
this/DT
level/NN
are/VBP
also/RB
more/RBR
knowledgeable/JJ
than/IN
they/PRP
were/VBD
a/DT
few/JJ
years/NNS
ago/RB
./.
``/``
They/PRP
wo/MD
n't/RB
buy/VB
if/IN
the/DT
quality/NN
is/VBZ
not/RB
there/RB
,/,
''/''
said/VBD
Cedric/NNP
Martin/NNP
of/IN
Martin/NNP
Wine/NNP
Cellar/NNP
in/IN
New/NNP
Orleans/NNP
./.
``/``
Or/CC
if/IN
they/PRP
feel/VBP
the/DT
wine/NN
is/VBZ
overpriced/VBN
and/CC
they/PRP
can/MD
get/VB
something/NN
equally/RB
good/JJ
for/IN
less/JJR
./.
''/''
Mr./NNP
Martin/NNP
has/VBZ
increased/VBN
prices/NNS
on/IN
some/DT
wines/NNS
Grgich/NNP
Hills/NNP
Chardonnay/NNP
,/,
now/RB
$/$
32/CD
movement/NN
,/,
but/CC
he/PRP
is/VBZ
beginning/VBG
to/TO
see/VB
some/DT
resistance/NN
to/TO
high-priced/JJ
red/JJ
Burgundies/NNPS
and/CC
Cabernets/NNPS
and/CC
Chardonnays/NNPS
in/IN
the/DT
$/$
30/CD
to/TO
$/$
40/CD
range/NN
./.
Image/NN
has/VBZ
,/,
of/IN
course/NN
,/,
a/DT
great/JJ
deal/NN
to/TO
do/VB
with/IN
what/WP
sells/VBZ
and/CC
what/WP
does/VBZ
n't/RB
,/,
and/CC
it/PRP
ca/MD
n't/RB
be/VB
forced/VBN
./.
Wine/NN
merchants/NNS
ca/MD
n't/RB
keep/VB
Roederer/NNP
Cristal/NNP
in/IN
stock/NN
,/,
but/CC
they/PRP
have/VBP
to/TO
push/VB
Salon/NNP
le/DT
Mesnil/NNP
,/,
even/RB
lowering/VBG
the/DT
price/NN
from/IN
$/$
115/CD
to/TO
$/$
90/CD
./.
It/PRP
's/VBZ
hardly/RB
a/DT
question/NN
of/IN
quality/NN
--/:
the/CD
1982/CD
Salon/NNP
is/VBZ
a/DT
beautiful/JJ
wine/NN
,/,
but/CC
,/,
as/IN
Mr./NNP
Pratt/NNP
noted/VBD
,/,
people/NNS
have/VBP
their/PRP$
own/JJ
ideas/NNS
about/IN
value/NN
./.
It/PRP
's/VBZ
interesting/JJ
to/TO
find/VB
that/IN
a/DT
lot/NN
of/IN
the/DT
expensive/JJ
wines/NNS
are/VBP
n't/RB
always/RB
walking/VBG
out/IN
the/DT
door/NN
./.
In/IN
every/DT
major/JJ
market/NN
in/IN
the/DT
U.S./NNP
,/,
for/IN
instance/NN
,/,
you/PRP
can/MD
buy/VB
'86/CD
La/NNP
Tache/NNP
or/CC
Richebourg/NNP
,/,
virtually/RB
all/DT
of/IN
the/DT
first/JJ
growth/NN
Bordeaux/NNP
Petrus/NNP
Opus/NNP
One/CD
and/CC
Dominus/NNP
from/IN
California/NNP
and/CC
,/,
at/IN
the/DT
moment/NN
,/,
the/DT
Stag/NNP
's/POS
Leap/NNP
1985/CD
Cask/NNP
23/CD
./.
With/IN
the/DT
biggest/JJS
wine-buying/JJ
period/NN
of/IN
the/DT
year/NN
looming/VBG
as/IN
the/DT
holidays/NNS
approach/VBP
,/,
it/PRP
will/MD
be/VB
interesting/JJ
to/TO
see/VB
how/WRB
the/DT
superpremiums/NNS
fare/VBP
./.
By/IN
January/NNP
it/PRP
should/MD
be/VB
fairly/RB
clear/JJ
what/WP
's/POS
hot/JJ
--/:
and/NN
what/WP
's/VBZ
not/RB
./.
Ms./NNP
Ensrud/NNP
is/VBZ
a/DT
free-lance/JJ
wine/NN
writer/NN
in/IN
New/NNP
York/NNP
./.
Signs/NNS
of/IN
a/DT
slowing/VBG
economy/NN
are/VBP
increasing/VBG
pressure/NN
on/IN
the/DT
Federal/NNP
Reserve/NNP
to/TO
cut/VB
short-term/JJ
interest/NN
rates/NNS
,/,
but/CC
it/PRP
is/VBZ
n't/RB
clear/JJ
whether/IN
the/DT
central/JJ
bank/NN
will/MD
do/VB
so/RB
./.
A/DT
survey/NN
by/IN
the/DT
Fed/NNP
's/POS
12/CD
district/NN
banks/NNS
shows/VBZ
economic/JJ
growth/NN
has/VBZ
been/VBN
sluggish/JJ
in/IN
recent/JJ
weeks/NNS
,/,
while/IN
upward/JJ
pressures/NNS
on/IN
prices/NNS
have/VBP
moderated/VBN
./.
``/``
The/DT
economy/NN
is/VBZ
clearly/RB
slowing/VBG
,/,
''/''
says/VBZ
Robert/NNP
Black/NNP
,/,
president/NN
of/IN
the/DT
Richmond/NNP
Federal/NNP
Reserve/NNP
Bank/NNP
./.
``/``
If/IN
you/PRP
look/VBP
at/IN
the/DT
third/JJ
quarter/NN
as/IN
posting/VBG
roughly/RB
2.5/CD
%/NN
growth/NN
,/,
I/PRP
do/VBP
see/VB
some/DT
slowing/NN
in/IN
the/DT
fourth/JJ
quarter/NN
,/,
''/''
agrees/VBZ
Kansas/NNP
City/NNP
Fed/NNP
President/NNP
Roger/NNP
Guffey/NNP
./.
Nevertheless/RB
,/,
both/DT
Mr./NNP
Guffey/NNP
and/CC
Mr./NNP
Black/NNP
say/VBP
the/DT
slowdown/NN
so/RB
far/RB
is/VBZ
no/DT
cause/NN
for/IN
concern/NN
./.
``/``
We/PRP
're/VBP
coming/VBG
closer/RBR
to/TO
achieving/VBG
the/DT
stated/VBN
objective/NN
of/IN
slowing/VBG
the/DT
economy/NN
to/TO
a/DT
point/NN
where/WRB
hopefully/RB
some/DT
downward/JJ
trend/NN
in/IN
prices/NNS
will/MD
occur/VB
,/,
''/''
said/VBD
Mr./NNP
Guffey/NNP
./.
Bush/NNP
administration/NN
officials/NNS
are/VBP
looking/VBG
to/TO
the/DT
Fed/NNP
to/TO
bring/VB
down/RB
rates/NNS
,/,
and/CC
financial/JJ
markets/NNS
seem/VBP
to/TO
be/VB
expecting/VBG
easier/JJR
credit/NN
as/RB
well/RB
./.
``/``
I/PRP
think/VBP
the/DT
market/NN
had/VBD
been/VBN
expecting/VBG
the/DT
Fed/NNP
to/TO
ease/VB
sooner/RBR
and/CC
a/DT
little/RB
more/RBR
than/IN
it/PRP
has/VBZ
to/TO
date/NN
,/,
''/''
said/VBD
Robert/NNP
Johnson/NNP
,/,
vice/NN
president/NN
of/IN
global/JJ
markets/NNS
for/IN
Bankers/NNP
Trust/NNP
Co/NNP
./.
The/DT
Fed/NNP
cut/VBD
the/DT
key/JJ
federal/JJ
funds/NNS
interest/NN
rate/NN
by/IN
about/RB
0.25/CD
percentage/NN
point/NN
to/TO
8.75/CD
%/NN
after/IN
the/DT
Oct./NNP
13/CD
stock/NN
market/NN
plunge/NN
,/,
but/CC
has/VBZ
shown/VBN
no/DT
sign/NN
of/IN
movement/NN
since/IN
./.
The/DT
report/NN
from/IN
the/DT
Fed/NNP
found/VBD
that/IN
manufacturing/NN
,/,
in/IN
particular/JJ
,/,
has/VBZ
been/VBN
weak/JJ
in/IN
recent/JJ
weeks/NNS
./.
The/DT
Philadelphia/NNP
Fed/NNP
,/,
for/IN
instance/NN
,/,
reported/VBD
that/IN
manufacturing/NN
activity/NN
``/``
continues/VBZ
to/TO
decline/VB
''/''
for/IN
the/DT
fourth/JJ
month/NN
in/IN
a/DT
row/NN
./.
And/CC
in/IN
the/DT
Chicago/NNP
district/NN
,/,
the/DT
report/NN
said/VBD
,/,
``/``
a/DT
manufacturer/NN
of/IN
capital/NN
goods/NNS
noted/VBD
slower/JJR
orders/NNS
for/IN
some/DT
types/NNS
,/,
including/VBG
defense/NN
equipment/NN
,/,
petroleum/NN
equipment/NN
,/,
food/NN
packaging/NN
machinery/NN
and/CC
material/NN
handling/NN
equipment/NN
./.
''/''
Retail/JJ
sales/NNS
also/RB
were/VBD
reported/VBN
slow/RB
in/IN
most/JJS
districts/NNS
,/,
particularly/RB
``/``
for/IN
discretionary/JJ
,/,
big-ticket/JJ
items/NNS
such/JJ
as/IN
furniture/NN
,/,
home/NN
appliances/NNS
and/CC
consumer/NN
electronics/NNS
./.
''/''
And/CC
construction/NN
also/RB
was/VBD
described/VBN
as/IN
slow/JJ
in/IN
most/JJS
areas/NNS
./.
Despite/IN
the/DT
economic/JJ
slowdown/NN
,/,
there/EX
are/VBP
few/JJ
clear/JJ
signs/NNS
that/IN
growth/NN
is/VBZ
coming/VBG
to/TO
a/DT
halt/NN
./.
As/IN
a/DT
result/NN
,/,
Fed/NNP
officials/NNS
may/MD
be/VB
divided/VBN
over/IN
whether/IN
to/TO
ease/VB
credit/NN
./.
Several/JJ
Fed/NNP
governors/NNS
in/IN
Washington/NNP
have/VBP
been/VBN
pushing/VBG
for/IN
easier/JJR
credit/NN
;/:
but/CC
many/JJ
of/IN
the/DT
regional/JJ
Fed/NNP
presidents/NNS
have/VBP
been/VBN
resisting/VBG
such/JJ
a/DT
move/NN
./.
Mr./NNP
Black/NNP
said/VBD
he/PRP
is/VBZ
``/``
pleased/VBN
''/''
with/IN
the/DT
economy/NN
's/POS
recent/JJ
performance/NN
,/,
and/CC
does/VBZ
n't/RB
see/VB
``/``
a/DT
lot/NN
of/IN
excesses/NNS
out/IN
there/RB
that/WDT
would/MD
tilt/VB
us/PRP
into/IN
recession/NN
./.
''/''
``/``
There/EX
is/VBZ
always/RB
a/DT
chance/NN
of/IN
recession/NN
,/,
''/''
added/VBD
Mr./NNP
Guffey/NNP
,/,
``/``
but/CC
if/IN
you/PRP
ask/VBP
me/PRP
to/TO
put/VB
a/DT
percentage/NN
on/IN
it/PRP
,/,
I/PRP
would/MD
think/VB
it/PRP
's/VBZ
well/RB
below/IN
a/DT
50/CD
%/NN
chance/NN
./.
''/''
Integra-A/NNP
Hotel/NNP
&/CC
Restaurant/NNP
Co./NNP
said/VBD
its/PRP$
planned/VBN
rights/NNS
offering/NN
to/TO
raise/VB
about/RB
$/$
9/CD
million/CD
was/VBD
declared/VBN
effective/JJ
and/CC
the/DT
company/NN
will/MD
begin/VB
mailing/VBG
materials/NNS
to/TO
shareholders/NNS
at/IN
the/DT
end/NN
of/IN
this/DT
week/NN
./.
Under/IN
the/DT
offer/NN
,/,
shareholders/NNS
will/MD
receive/VB
one/CD
right/JJ
for/IN
each/DT
105/CD
common/JJ
shares/NNS
owned/VBN
./.
Each/DT
right/NN
entitles/VBZ
the/DT
shareholder/NN
to/TO
buy/VB
$/$
100/CD
face/NN
amount/NN
of/IN
13.5/CD
%/NN
bonds/NNS
due/JJ
1993/CD
and/CC
warrants/VBZ
to/TO
buy/VB
23.5/CD
common/JJ
shares/NNS
at/IN
30/CD
cents/NNS
a/DT
share/NN
./.
The/DT
rights/NNS
,/,
which/WDT
expire/VBP
Nov./NN
21/CD
,/,
can/MD
be/VB
exercised/VBN
for/IN
$/$
100/CD
each/DT
./.
Integra/NNP
,/,
which/WDT
owns/VBZ
and/CC
operates/VBZ
hotels/NNS
,/,
said/VBD
that/IN
Hallwood/NNP
Group/NNP
Inc./NNP
has/VBZ
agreed/VBN
to/TO
exercise/VB
any/DT
rights/NNS
that/WDT
are/VBP
n't/RB
exercised/VBN
by/IN
other/JJ
shareholders/NNS
./.
Hallwood/NNP
,/,
a/DT
Cleveland/NNP
merchant/NN
bank/NN
,/,
owns/VBZ
about/RP
11/CD
%/NN
of/IN
Integra/NNP
./.
Copperweld/NNP
Corp./NNP
,/,
a/DT
specialty/NN
steelmaker/NN
,/,
said/VBD
445/CD
workers/NNS
at/IN
a/DT
plant/NN
in/IN
Shelby/NNP
,/,
Ohio/NNP
,/,
began/VBD
a/DT
strike/NN
after/IN
the/DT
United/NNP
Steelworkers/NNP
Local/NNP
3057/CD
rejected/VBD
a/DT
new/JJ
contract/NN
on/IN
Tuesday/NNP
./.
The/DT
previous/JJ
contract/NN
between/IN
Copperweld/NNP
's/POS
Ohio/NNP
Steel/NNP
Tube/NNP
division/NN
and/CC
the/DT
union/NN
expired/VBD
at/IN
midnight/NN
Tuesday/NNP
./.
The/DT
union/NN
vote/NN
to/TO
reject/VB
the/DT
proposed/VBN
pact/NN
was/VBD
230-215/CD
./.
Copperweld/NN
said/VBD
it/PRP
does/VBZ
n't/RB
expect/VB
a/DT
protracted/JJ
strike/NN
./.
It/PRP
said/VBD
it/PRP
has/VBZ
taken/VBN
measures/NNS
to/TO
continue/VB
shipments/NNS
during/IN
the/DT
work/NN
stoppage/NN
./.
The/DT
Treasury/NNP
said/VBD
it/PRP
plans/VBZ
to/TO
sell/VB
$/$
30/CD
billion/CD
in/IN
notes/NNS
and/CC
bonds/NNS
next/IN
week/NN
,/,
but/CC
said/VBD
the/DT
auctions/NNS
will/MD
be/VB
postponed/VBN
unless/IN
Congress/NNP
acts/VBZ
quickly/RB
to/TO
lift/VB
the/DT
federal/JJ
debt/NN
ceiling/NN
./.
Michael/NNP
Basham/NNP
,/,
deputy/NN
assistant/NN
secretary/NN
for/IN
federal/JJ
finance/NN
,/,
said/VBD
the/DT
Treasury/NNP
may/MD
wait/VB
until/IN
late/JJ
Monday/NNP
or/CC
even/RB
early/JJ
Tuesday/NNP
to/TO
announce/VB
whether/IN
the/DT
autions/NNS
are/VBP
to/TO
be/VB
rescheduled/VBN
./.
Unless/IN
it/PRP
can/MD
raise/VB
money/NN
in/IN
financial/JJ
markets/NNS
,/,
Mr./NNP
Basham/NNP
said/VBD
,/,
the/DT
federal/JJ
government/NN
wo/MD
n't/RB
have/VB
the/DT
cash/NN
to/TO
pay/VB
off/RP
$/$
13.8/CD
billion/CD
in/IN
Treasury/NNP
bills/NNS
that/WDT
mature/VBP
on/IN
Thursday/NNP
./.
Without/IN
congressional/JJ
action/NN
,/,
the/DT
Treasury/NNP
ca/MD
n't/RB
sell/VB
any/DT
new/JJ
securities/NNS
--/:
even/JJ
savings/NNS
bonds/NNS
./.
But/CC
despite/IN
partisan/JJ
bickering/NN
over/IN
the/DT
debt/NN
ceiling/NN
,/,
which/WDT
has/VBZ
become/VBN
entangled/JJ
in/IN
the/DT
fight/NN
over/IN
cutting/VBG
capital-gains/NNS
taxes/NNS
,/,
Congress/NNP
is/VBZ
almost/RB
certain/JJ
to/TO
act/VB
in/IN
time/NN
to/TO
avoid/VB
default/NN
./.
``/``
Each/DT
day/NN
that/IN
Congress/NNP
fails/VBZ
to/TO
act/VB
.../:
will/MD
cause/VB
additional/JJ
disruption/NN
in/IN
our/PRP$
borrowing/NN
schedule/NN
,/,
possibly/RB
resulting/VBG
in/IN
higher/JJR
interest/NN
costs/NNS
to/TO
the/DT
taxpayer/NN
,/,
''/''
Treasury/NNP
Secretary/NNP
Nicholas/NNP
Brady/NNP
said/VBD
in/IN
a/DT
speech/NN
prepared/VBN
for/IN
delivery/NN
last/JJ
night/NN
to/TO
a/DT
group/NN
of/IN
bankers/NNS
./.
``/``
To/TO
avoid/VB
these/DT
costs/NNS
,/,
and/CC
a/DT
possible/JJ
default/NN
,/,
immediate/JJ
action/NN
is/VBZ
imperative/JJ
./.
''/''
The/DT
securities/NNS
to/TO
be/VB
sold/VBN
next/JJ
week/NN
will/MD
raise/VB
about/RB
$/$
10/CD
billion/CD
in/IN
cash/NN
and/CC
redeem/VB
$/$
20/CD
billion/CD
in/IN
maturing/VBG
notes/NNS
./.
The/DT
new/JJ
securities/NNS
,/,
part/NN
of/IN
the/DT
federal/JJ
government/NN
's/POS
regular/JJ
quarterly/JJ
refunding/VBG
,/,
will/MD
consist/VB
of/IN
:/:
--/:
$/$
10/CD
billion/CD
of/IN
three-year/JJ
notes/NNS
,/,
to/TO
be/VB
auctioned/VBN
Tuesday/NNP
and/CC
to/TO
mature/VB
Nov./NNP
15/CD
,/,
1992/CD
./.
--/:
$/$
10/CD
billion/CD
of/IN
10-year/JJ
notes/NNS
,/,
to/TO
be/VB
auctioned/VBN
Wednesday/NNP
and/CC
to/TO
mature/VB
Nov./NNP
15/CD
,/,
1999/CD
./.
--/:
$/$
10/CD
billion/CD
of/IN
30-year/JJ
bonds/NNS
,/,
to/TO
be/VB
auctioned/VBN
Thursday/NNP
and/CC
to/TO
mature/VB
Aug./NNP
15/CD
,/,
2019/CD
./.
The/DT
Treasury/NNP
also/RB
said/VBD
it/PRP
plans/VBZ
to/TO
sell/VB
$/$
10/CD
billion/CD
in/IN
36-day/JJ
cash/NN
management/NN
bills/NNS
on/IN
Thursday/NNP
./.
They/PRP
will/MD
mature/VB
Dec./NNP
21/CD
./.
None/NN
of/IN
the/DT
securities/NNS
will/MD
be/VB
eligible/JJ
for/IN
when-issued/JJ
trading/VBG
until/IN
Congress/NNP
approves/VBZ
an/DT
increase/NN
in/IN
the/DT
debt/NN
ceiling/NN
,/,
clearing/VBG
the/DT
way/NN
for/IN
a/DT
formal/JJ
offering/NN
,/,
Mr./NNP
Basham/NNP
said/VBD
./.
The/DT
Treasury/NNP
said/VBD
it/PRP
needs/VBZ
to/TO
raise/VB
$/$
47.5/CD
billion/CD
in/IN
the/DT
current/JJ
quarter/NN
in/IN
order/NN
to/TO
end/VB
December/NNP
with/IN
a/DT
$/$
20/CD
billion/CD
cash/NN
balance/NN
./.
Auctions/NNS
held/VBD
in/IN
October/NNP
and/CC
those/DT
scheduled/VBN
for/IN
next/JJ
week/NN
will/MD
raise/VB
a/DT
total/NN
of/IN
$/$
25.6/CD
billion/CD
./.
The/DT
remaining/VBG
$/$
21.9/CD
billion/CD
could/MD
be/VB
raised/VBN
through/IN
the/DT
sale/NN
of/IN
short-term/JJ
Treasury/NNP
bills/NNS
,/,
two-year/JJ
notes/NNS
in/IN
November/NNP
and/CC
five-year/JJ
notes/NNS
in/IN
early/JJ
December/NNP
,/,
the/DT
Treasury/NNP
said/VBD
./.
In/IN
the/DT
first/JJ
three/CD
months/NNS
of/IN
1990/CD
,/,
the/DT
Treasury/NNP
estimates/VBZ
that/IN
it/PRP
will/MD
have/VB
to/TO
raise/VB
between/IN
$/$
45/CD
billion/CD
and/CC
$/$
50/CD
billion/CD
,/,
assuming/VBG
that/IN
it/PRP
decides/VBZ
to/TO
aim/VB
for/IN
a/DT
$/$
10/CD
billion/CD
cash/NN
balance/NN
at/IN
the/DT
end/NN
of/IN
March/NNP
./.
Lancaster/NNP
Colony/NNP
Corp./NNP
said/VBD
it/PRP
acquired/VBD
Reames/NNP
Foods/NNP
Inc./NNP
in/IN
a/DT
cash/NN
transaction/NN
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Reames/NNP
,/,
a/DT
maker/NN
and/CC
marketer/NN
of/IN
frozen/VBN
noodles/NNS
and/CC
pre-cooked/JJ
pasta/NN
based/VBN
in/IN
Clive/NNP
,/,
Iowa/NNP
,/,
has/VBZ
annual/JJ
sales/NNS
of/IN
about/RB
$/$
11/CD
million/CD
,/,
Lancaster/NNP
said/VBD
./.
Investors/NNS
took/VBD
advantage/NN
of/IN
Tuesday/NNP
's/POS
stock/NN
rally/NN
to/TO
book/VB
some/DT
profits/NNS
yesterday/NN
,/,
leaving/VBG
stocks/RB
up/IN
fractionally/RB
./.
Bond/NN
prices/NNS
and/CC
the/DT
dollar/NN
both/DT
gained/VBD
modestly/RB
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
finished/VBD
less/JJR
than/IN
a/DT
point/NN
higher/RBR
to/TO
close/VB
at/IN
2645.90/CD
in/IN
moderate/JJ
trading/VBG
./.
But/CC
advancing/VBG
issues/NNS
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
were/VBD
tidily/RB
ahead/RB
of/IN
declining/VBG
stocks/NNS
,/,
847/CD
to/TO
644/CD
./.
Long-term/JJ
bond/NN
prices/NNS
rose/VBD
despite/IN
prospects/NNS
of/IN
a/DT
huge/JJ
new/JJ
supply/NN
of/IN
Treasury/NNP
debt/NN
this/DT
month/NN
./.
Continuing/VBG
demand/NN
for/IN
dollars/NNS
from/IN
Japanese/JJ
investors/NNS
boosted/VBD
the/DT
U.S./NNP
currency/NN
./.
Analysts/NNS
were/VBD
disappointed/VBN
that/IN
the/DT
enthusiasm/NN
investors/NNS
showed/VBD
for/IN
stocks/NNS
in/IN
the/DT
wake/NN
of/IN
Georgia-Pacific/NNP
's/POS
$/$
3.18/CD
billion/CD
bid/NN
for/IN
Great/JJ
Northern/NNP
Nekoosa/NNP
evaporated/VBD
so/RB
quickly/RB
./.
The/DT
industrial/JJ
average/NN
jumped/VBD
more/RBR
than/IN
41/CD
points/NNS
Tuesday/NNP
as/IN
speculators/NNS
rushed/VBD
to/TO
buy/VB
shares/NNS
of/IN
potential/JJ
takeover/NN
targets/NNS
./.
But/CC
with/IN
the/DT
end/NN
of/IN
the/DT
year/NN
in/IN
sight/NN
,/,
money/NN
managers/NNS
are/VBP
eager/JJ
to/TO
take/VB
profits/NNS
and/CC
cut/VB
their/PRP$
risks/NNS
of/IN
losing/VBG
what/WP
for/IN
many/JJ
have/VBP
been/VBN
exceptionally/RB
good/JJ
returns/NNS
in/IN
Economic/JJ
news/NN
had/VBD
little/JJ
effect/NN
on/IN
financial/JJ
markets/NNS
./.
As/IN
expected/VBN
,/,
a/DT
national/JJ
purchasing/NN
managers/NNS
'/POS
report/NN
indicated/VBD
the/DT
nation/NN
's/POS
manufacturing/NN
sector/NN
continues/VBZ
to/TO
contract/VB
modestly/RB
./.
The/DT
Federal/NNP
Reserve/NNP
's/POS
Beige/NNP
Book/NNP
,/,
a/DT
summary/NN
of/IN
economic/JJ
conditions/NNS
across/IN
the/DT
country/NN
,/,
indicated/VBD
that/IN
the/DT
overall/JJ
economy/NN
remains/VBZ
in/IN
a/DT
pattern/NN
of/IN
sluggish/JJ
growth/NN
./.
In/IN
major/JJ
market/NN
activity/NN
:/:
Stock/NN
prices/NNS
rose/VBD
fractionally/RB
in/IN
moderate/JJ
trading/VBG
./.
Big/NNP
Board/NNP
volume/NN
totaled/VBD
154.2/CD
million/CD
shares/NNS
./.
Bond/NN
prices/NNS
were/VBD
up/RB
./.
The/DT
Treasury/NNP
's/POS
benchmark/NN
30-year/JJ
bond/NN
gained/VBD
about/RB
a/DT
quarter/NN
of/IN
a/DT
point/NN
,/,
or/CC
$/$
2.50/CD
for/IN
each/DT
$/$
1,000/CD
of/IN
face/NN
amount/NN
./.
The/DT
yield/NN
fell/VBD
to/TO
7.88/CD
%/NN
./.
The/DT
dollar/NN
rose/VBD
./.
In/IN
late/JJ
afternoon/NN
New/NNP
York/NNP
trading/VBG
the/DT
currency/NN
was/VBD
at/IN
1.8500/CD
marks/NNS
and/CC
143.80/CD
yen/NN
compared/VBN
with/IN
1.8415/CD
marks/NNS
and/CC
142.85/CD
yen/NN
./.
Mitsui/NNP
Mining/NNP
&/CC
Smelting/NNP
Co./NNP
posted/VBD
a/DT
62/CD
%/NN
rise/NN
in/IN
pretax/JJ
profit/NN
to/TO
5.276/CD
billion/CD
yen/NN
$/$
36.9/CD
million/CD
its/PRP$
fiscal/JJ
first/JJ
half/NN
ended/VBD
Sept./JJ
30/CD
compared/VBN
with/IN
3.253/CD
billion/CD
yen/NN
a/DT
year/NN
earlier/RBR
./.
Net/JJ
income/NN
more/RBR
than/IN
tripled/VBD
to/TO
4.898/CD
billion/CD
yen/NNS
from/IN
1.457/CD
billion/CD
yen/NNS
a/DT
year/NN
earlier/JJR
./.
Eaton/NNP
Corp./NNP
said/VBD
it/PRP
sold/VBD
its/PRP$
Pacific/NNP
Sierra/NNP
Research/NNP
Corp./NNP
unit/NN
to/TO
a/DT
company/NN
formed/VBN
by/IN
employees/NNS
of/IN
that/DT
unit/NN
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Pacific/NNP
Sierra/NNP
,/,
based/VBN
in/IN
Los/NNP
Angeles/NNP
,/,
has/VBZ
about/RB
200/CD
employees/NNS
and/CC
supplies/VBZ
professional/JJ
services/NNS
and/CC
advanced/JJ
products/NNS
to/TO
industry/NN
./.
Eaton/NNP
is/VBZ
an/DT
automotive/JJ
parts/NNS
,/,
controls/NNS
and/CC
aerospace/NN
electronics/NNS
concern/NN
./.
Investor/NNP
Harold/NNP
Simmons/NNP
and/CC
NL/NNP
Industries/NNP
Inc./NNP
offered/VBD
to/TO
acquire/VB
Georgia/NNP
Gulf/NNP
Corp./NNP
for/IN
$/$
50/CD
a/DT
share/NN
,/,
or/CC
about/RB
$/$
1.1/CD
billion/CD
,/,
stepping/VBG
up/RP
the/DT
pressure/NN
on/IN
the/DT
commodity/NN
chemicals/NNS
concern/NN
./.
The/DT
offer/NN
follows/VBZ
an/DT
earlier/JJR
proposal/NN
by/IN
NL/NNP
and/CC
Mr./NNP
Simmons/NNP
to/TO
help/VB
Georgia/NNP
Gulf/NNP
restructure/NN
or/CC
go/VB
private/JJ
in/IN
a/DT
transaction/NN
that/WDT
would/MD
pay/VB
shareholders/NNS
$/$
55/CD
a/DT
share/NN
./.
Georgia/NNP
Gulf/NNP
rebuffed/VBD
that/DT
offer/NN
in/IN
September/NNP
and/CC
said/VBD
it/PRP
would/MD
study/VB
other/JJ
alternatives/NNS
./.
However/RB
,/,
it/PRP
has/VBZ
n't/RB
yet/RB
made/VBD
any/DT
proposals/NNS
to/TO
shareholders/NNS
./.
Late/RB
yesterday/NN
,/,
Georgia/NNP
Gulf/NNP
said/VBD
it/PRP
reviewed/VBD
the/DT
NL/NNP
proposal/NN
as/RB
well/RB
as/IN
interests/NNS
from/IN
``/``
third/JJ
parties/NNS
''/''
regarding/VBG
business/NN
combinations/NNS
./.
Georgia/NNP
Gulf/NNP
said/VBD
it/PRP
has/VBZ
n't/RB
eliminated/VBN
any/DT
alternatives/NNS
and/CC
that/IN
``/``
discussions/NNS
are/VBP
being/VBG
held/VBN
with/IN
interested/JJ
parties/NNS
,/,
and/CC
work/NN
is/VBZ
also/RB
continuing/VBG
on/IN
other/JJ
various/JJ
transactions/NNS
./.
''/''
It/PRP
did/VBD
n't/RB
elaborate/VB
./.
Analysts/NNS
saw/VBD
the/DT
latest/JJS
offer/NN
as/RB
proof/JJ
that/IN
Mr./NNP
Simmons/NNP
,/,
an/DT
aggressive/JJ
and/CC
persistent/JJ
investor/NN
,/,
wo/MD
n't/RB
leave/VB
Georgia/NNP
Gulf/NNP
alone/RB
until/IN
some/DT
kind/NN
of/IN
transaction/NN
is/VBZ
completed/VBN
./.
``/``
He/PRP
has/VBZ
clamped/VBN
on/IN
their/PRP$
ankle/NN
like/IN
a/DT
pit/NN
bull/NN
,/,
''/''
says/VBZ
Paul/NNP
Leming/NNP
,/,
a/DT
vice/NN
president/NN
with/IN
Morgan/NNP
Stanley/NNP
&/CC
Co/NNP
./.
``/``
He/PRP
appears/VBZ
to/TO
be/VB
in/IN
it/PRP
for/IN
the/DT
long/JJ
haul/NN
./.
''/''
Mr./NNP
Simmons/NNP
and/CC
NL/NNP
already/RB
own/VB
a/DT
9.9/CD
%/NN
stake/NN
in/IN
Georgia/NNP
Gulf/NNP
./.
Mr./NNP
Simmons/NNP
owns/VBZ
88/CD
%/NN
of/IN
Valhi/NNP
Inc./NNP
,/,
which/WDT
in/IN
turn/NN
owns/VBZ
two-thirds/NNS
of/IN
NL/NNP
./.
NL/NNP
is/VBZ
officially/RB
making/VBG
the/DT
offer/NN
./.
Mr./NNP
Leming/NNP
was/VBD
n't/RB
surprised/VBN
by/IN
the/DT
lower/JJR
price/NN
cited/VBN
by/IN
NL/NNP
,/,
saying/VBG
he/PRP
believes/VBZ
that/IN
$/$
55/CD
a/DT
share/NN
is/VBZ
``/``
the/DT
most/JJS
you/PRP
can/MD
pay/VB
for/IN
Georgia/NNP
Gulf/NNP
before/IN
it/PRP
becomes/VBZ
a/DT
bad/JJ
acquisition/NN
./.
''/''
Georgia/NNP
Gulf/NNP
stock/NN
rose/VBD
$/$
1.75/CD
a/DT
share/NN
yesterday/NN
to/TO
close/VB
at/IN
$/$
51.25/CD
a/DT
share/NN
,/,
while/IN
NL/NNP
shares/NNS
closed/VBD
unchanged/JJ
at/IN
$/$
22.75/CD
and/CC
Valhi/NNP
rose/VBD
62.5/CD
cents/NNS
to/TO
$/$
15/CD
,/,
all/DT
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/VBG
./.
J./NNP
Landis/NNP
Martin/NNP
,/,
NL/NNP
president/NN
and/CC
chief/JJ
executive/NN
officer/NN
,/,
said/VBD
NL/NNP
and/CC
Mr./NNP
Simmons/NNP
cut/VBD
the/DT
price/NN
they/PRP
were/VBD
proposing/VBG
for/IN
Georgia/NNP
Gulf/NNP
because/IN
they/PRP
initially/RB
planned/VBD
a/DT
transaction/NN
that/WDT
included/VBD
about/RB
$/$
250/CD
million/CD
in/IN
equity/NN
and/CC
a/DT
substantial/JJ
amount/NN
of/IN
high-yield/JJ
subordinated/VBN
debt/NN
./.
However/RB
,/,
the/DT
junk-bond/JJ
market/NN
has/VBZ
collapsed/VBN
in/IN
recent/JJ
weeks/NNS
,/,
lessening/VBG
the/DT
likelihood/NN
that/IN
such/JJ
a/DT
transaction/NN
would/MD
succeed/VB
./.
Now/RB
,/,
he/PRP
said/VBD
,/,
the/DT
group/NN
plans/VBZ
to/TO
put/VB
in/RP
``/``
several/JJ
hundred/CD
million/CD
''/''
dollars/NNS
in/IN
equity/NN
and/CC
finance/VB
the/DT
remainder/NN
with/IN
bank/NN
debt/NN
./.
He/PRP
also/RB
said/VBD
that/IN
the/DT
group/NN
reduced/VBD
its/PRP$
offer/NN
because/IN
it/PRP
was/VBD
n't/RB
allowed/VBN
to/TO
see/VB
Georgia/NNP
Gulf/NNP
's/POS
confidential/JJ
financial/JJ
information/NN
without/IN
agreeing/VBG
that/IN
it/PRP
would/MD
n't/RB
make/VB
an/DT
offer/NN
unless/IN
it/PRP
had/VBD
Georgia/NNP
Gulf/NNP
's/POS
consent/NN
./.
In/IN
a/DT
letter/NN
to/TO
Georgia/NNP
Gulf/NNP
President/NNP
Jerry/NNP
R./NNP
Satrum/NNP
,/,
Mr./NNP
Martin/NNP
asked/VBD
Georgia/NNP
Gulf/NNP
to/TO
answer/VB
its/PRP$
offer/NN
by/IN
Tuesday/NNP
./.
It/PRP
was/VBD
n't/RB
clear/JJ
how/WRB
NL/NNP
and/CC
Mr./NNP
Simmons/NNP
would/MD
respond/VB
if/IN
Georgia/NNP
Gulf/NNP
spurns/VBZ
them/PRP
again/RB
./.
Mr./NNP
Martin/NNP
said/VBD
they/PRP
have/VBP
n't/RB
yet/RB
decided/VBN
what/WP
their/PRP$
next/JJ
move/NN
would/MD
be/VB
,/,
but/CC
he/PRP
did/VBD
n't/RB
rule/NN
out/RP
the/DT
possibility/NN
of/IN
a/DT
consent/NN
solicitation/NN
aimed/VBN
at/IN
replacing/VBG
Georgia/NNP
Gulf/NNP
's/POS
board/NN
./.
In/IN
other/JJ
transactions/NNS
,/,
Mr./NNP
Simmons/NNP
has/VBZ
followed/VBN
friendly/JJ
offers/NNS
with/IN
a/DT
hostile/NN
tender/NN
offer/NN
./.
Although/IN
Georgia/NNP
Gulf/NNP
has/VBZ
n't/RB
been/VBN
eager/JJ
to/TO
negotiate/VB
with/IN
Mr./NNP
Simmons/NNP
and/CC
NL/NNP
,/,
a/DT
specialty/NN
chemicals/NNS
concern/NN
,/,
the/DT
group/NN
apparently/RB
believes/VBZ
the/DT
company/NN
's/POS
management/NN
is/VBZ
interested/VBN
in/IN
some/DT
kind/NN
of/IN
transaction/NN
./.
The/DT
management/NN
group/NN
owns/VBZ
about/RB
18/CD
%/NN
of/IN
the/DT
stock/NN
,/,
most/JJS
purchased/VBN
at/IN
nominal/JJ
prices/NNS
,/,
and/CC
would/MD
stand/VB
to/TO
gain/VB
millions/NNS
of/IN
dollars/NNS
if/IN
the/DT
company/NN
were/VBD
sold/VBN
./.
In/IN
the/DT
third/JJ
quarter/NN
,/,
Georgia/NNP
Gulf/NNP
earned/VBD
$/$
46.1/CD
million/CD
,/,
or/CC
$/$
1.85/CD
a/DT
share/NN
,/,
down/RB
from/IN
$/$
53/CD
million/CD
,/,
or/CC
$/$
1.85/CD
a/DT
share/NN
on/IN
fewer/JJR
shares/NNS
outstanding/JJ
./.
Sales/NNS
fell/VBD
to/TO
$/$
251.2/CD
million/CD
from/IN
$/$
278.7/CD
million/CD
./.
A/DT
licensing/NN
company/NN
representing/VBG
the/DT
University/NNP
of/IN
Pennsylvania/NNP
added/VBD
Johnson/NNP
&/CC
Johnson/NNP
to/TO
its/PRP$
lawsuit/NN
challenging/VBG
a/DT
university/NN
faculty/NN
member/NN
over/IN
rights/NNS
to/TO
Retin-A/NNP
acne/NN
medicine/NN
./.
University/NNP
Patents/NNP
Inc./NNP
,/,
based/VBN
in/IN
Westport/NNP
,/,
Conn./NNP
,/,
said/VBD
it/PRP
seeks/VBZ
Johnson/NNP
&/CC
Johnson/NNP
's/POS
profits/NNS
from/IN
sales/NNS
of/IN
Retin-A/NNP
,/,
estimated/VBN
at/IN
$/$
50/CD
million/CD
,/,
a/DT
similar/JJ
amount/NN
of/IN
punitive/JJ
damages/NNS
and/CC
the/DT
right/NN
to/TO
license/VB
Retin-A/NNP
elsewhere/RB
./.
In/IN
May/NNP
,/,
University/NNP
Patents/NNP
filed/VBD
a/DT
suit/NN
in/IN
federal/JJ
court/NN
in/IN
Philadelphia/NNP
against/IN
Albert/NNP
M./NNP
Kligman/NNP
,/,
a/DT
researcher/NN
and/CC
professor/NN
at/IN
the/DT
University/NNP
of/IN
Pennsylvania/NNP
School/NNP
of/IN
Medicine/NNP
who/WP
developed/VBD
Retin-A/NNP
in/IN
the/DT
1960s/CD
to/TO
combat/VB
acne/NN
./.
Dr./NNP
Kligman/NNP
patented/VBD
the/DT
medicine/NN
while/IN
employed/VBN
by/IN
the/DT
University/NNP
,/,
but/CC
later/JJ
licensed/VBD
the/DT
Retin-A/NNP
to/TO
a/DT
division/NN
of/IN
Johnson/NNP
&/CC
Johnson/NNP
./.
In/IN
New/NNP
Brunswick/NNP
,/,
N.J./NNP
,/,
a/DT
Johnson/NNP
&/CC
Johnson/NNP
spokesman/NN
declined/VBD
comment/NN
./.
Criticism/NNP
in/IN
the/DT
U.S./NNP
over/IN
recent/JJ
Japanese/JJ
acquisitions/NNS
is/VBZ
looming/VBG
ever/RB
larger/JJR
in/IN
the/DT
two/CD
countries/NNS
'/POS
relations/NNS
./.
Officials/NNS
from/IN
both/DT
nations/NNS
say/VBP
the/DT
U.S./NNP
public/NN
's/POS
skittishness/NN
about/IN
Japanese/JJ
investment/NN
could/MD
color/VB
a/DT
second/JJ
round/NN
of/IN
bilateral/JJ
economic/JJ
talks/NNS
scheduled/VBN
for/IN
next/JJ
week/NN
in/IN
Washington/NNP
./.
Not/RB
that/IN
Washington/NNP
and/CC
Tokyo/NNP
disagree/VBP
on/IN
the/DT
Japanese/JJ
acquisitions/NNS
;/:
indeed/RB
,/,
each/DT
has/VBZ
come/VBN
out/RP
in/IN
favor/NN
of/IN
unfettered/JJ
investment/NN
in/IN
the/DT
U.S/NNP
./.
Where/WRB
they/PRP
disagree/VBP
is/VBZ
on/IN
the/DT
subject/NN
of/IN
U.S./NNP
direct/JJ
investment/NN
in/IN
Japan/NNP
./.
The/DT
U.S./NNP
wants/VBZ
the/DT
removal/NN
of/IN
what/WP
it/PRP
perceives/VBZ
as/IN
barriers/NNS
to/TO
investment/NN
;/:
Japan/NNP
denies/VBZ
there/EX
are/VBP
real/JJ
barriers/NNS
./.
The/DT
heated/JJ
talk/NN
stirred/VBD
up/RP
by/IN
recent/JJ
Japanese/JJ
investments/NNS
in/IN
the/DT
U.S./NNP
is/VBZ
focusing/VBG
attention/NN
on/IN
the/DT
differences/NNS
in/IN
investment/NN
climate/NN
,/,
even/RB
though/IN
it/PRP
's/VBZ
only/RB
one/CD
of/IN
many/JJ
subjects/NNS
to/TO
be/VB
covered/VBN
in/IN
the/DT
bilateral/JJ
talks/NNS
,/,
known/VBN
as/IN
the/DT
Structural/NNP
Impediments/NNP
Initiative/NNP
./.
The/DT
Japanese/NNS
``/``
should/MD
see/VB
this/DT
rhetoric/NN
as/IN
a/DT
signal/NN
of/IN
the/DT
need/NN
for/IN
a/DT
change/NN
in/IN
their/PRP$
own/JJ
economy/NN
,/,
''/''
says/VBZ
Charles/NNP
Dallara/NNP
,/,
U.S./NNP
assistant/NN
Treasury/NNP
secretary/NN
,/,
who/WP
has/VBZ
been/VBN
in/IN
Tokyo/NNP
this/DT
week/NN
informally/RB
discussing/VBG
the/DT
impending/VBG
negotiations/NNS
with/IN
government/NN
and/CC
business/NN
leaders/NNS
./.
``/``
We/PRP
have/VBP
a/DT
long/JJ
history/NN
of/IN
maintaining/VBG
an/DT
open/JJ
direct-investment/JJ
policy/NN
,/,
''/''
Mr./NNP
Dallara/NNP
says/VBZ
./.
``/``
U.S./NNP
investors/NNS
should/MD
have/VB
a/DT
greater/JJR
opportunity/NN
at/IN
direct/JJ
investment/NN
''/''
in/IN
Japan/NNP
./.
The/DT
Japanese/NNP
fret/NN
openly/RB
about/IN
the/DT
U.S./NNP
public/NN
's/POS
rancor/NN
./.
One/CD
clear/JJ
sign/NN
of/IN
Japan/NNP
's/POS
nervousness/NN
came/VBD
this/DT
week/NN
,/,
when/WRB
a/DT
spokesman/NN
for/IN
Japan/NNP
's/POS
Foreign/NNP
Ministry/NNP
devoted/VBD
nearly/RB
all/DT
of/IN
a/DT
regular/JJ
,/,
half-hour/JJ
briefing/NN
for/IN
foreign/JJ
journalists/NNS
to/TO
the/DT
subject/NN
of/IN
recent/JJ
Japanese/JJ
investments/NNS
in/IN
the/DT
U.S/NNP
./.
``/``
We/PRP
believe/VBP
that/IN
it/PRP
is/VBZ
vitally/RB
important/JJ
for/IN
those/DT
Japanese/JJ
business/NN
interests/NNS
the/DT
U.S/NNP
./.
the/DT
emotions/NNS
and/CC
concerns/NNS
of/IN
the/DT
American/JJ
people/NNS
,/,
''/''
said/VBD
the/DT
spokesman/NN
,/,
Taizo/NNP
Watanabe/NNP
./.
At/IN
the/DT
same/JJ
time/NN
,/,
though/RB
,/,
he/PRP
chastised/VBD
the/DT
media/NN
for/IN
paying/VBG
such/JJ
close/JJ
attention/NN
to/TO
Japanese/JJ
investment/NN
when/WRB
other/JJ
foreign/JJ
countries/NNS
,/,
notably/RB
Britain/NNP
,/,
are/VBP
acquiring/VBG
more/JJR
American/JJ
assets/NNS
./.
Fears/NNS
that/IN
Japanese/JJ
investors/NNS
are/VBP
buying/VBG
up/IN
America/NNP
have/VBP
escalated/VBN
sharply/RB
in/IN
the/DT
past/JJ
several/JJ
weeks/NNS
,/,
with/IN
Sony/NNP
Corp./NNP
's/POS
purchase/NN
of/IN
Columbia/NNP
Pictures/NNP
Entertainment/NNP
Inc./NNP
from/IN
Coca-Cola/NNP
Co./NNP
and/CC
Mitsubishi/NNP
Estate/NNP
Co./NNP
's/POS
acquisition/NN
of/IN
a/DT
51/CD
%/NN
holding/NN
in/IN
Rockefeller/NNP
Group/NNP
,/,
the/DT
owner/NN
of/IN
some/DT
of/IN
midtown/NN
Manhattan/NNP
's/POS
most/RBS
exclusive/JJ
real/JJ
estate/NN
./.
Even/RB
before/IN
those/DT
moves/NNS
added/VBD
fuel/NN
,/,
the/DT
fires/NNS
of/IN
discontent/NN
had/VBD
been/VBN
well/RB
stoked/VBN
by/IN
the/DT
highly/RB
publicized/VBN
experience/NN
in/IN
Japan/NNP
of/IN
one/CD
U.S./NNP
investor/NN
,/,
T./NNP
Boone/NNP
Pickens/NNP
Jr/NNP
./.
The/DT
Texas/NNP
oilman/NN
has/VBZ
acquired/VBN
a/DT
26.2/CD
%/NN
stake/NN
valued/VBN
at/IN
more/JJR
than/IN
$/$
1.2/CD
billion/CD
in/IN
an/DT
automotive-lighting/JJ
company/NN
,/,
Koito/NNP
Manufacturing/NNP
Co/NNP
./.
But/CC
he/PRP
has/VBZ
failed/VBN
to/TO
gain/VB
any/DT
influence/NN
at/IN
the/DT
company/NN
./.
Koito/NNP
has/VBZ
refused/VBN
to/TO
grant/VB
Mr./NNP
Pickens/NNP
seats/NNS
on/IN
its/PRP$
board/NN
,/,
asserting/VBG
he/PRP
is/VBZ
a/DT
greenmailer/NN
trying/VBG
to/TO
pressure/VB
Koito/NNP
's/POS
other/JJ
shareholders/NNS
into/IN
buying/VBG
him/PRP
out/RP
at/IN
a/DT
profit/NN
./.
Mr./NNP
Pickens/NNP
made/VBD
considerable/JJ
political/JJ
hay/NN
with/IN
his/PRP$
troubles/NNS
in/IN
Japan/NNP
./.
The/DT
Senate/NNP
Finance/NNP
Committee/NNP
,/,
chaired/VBN
by/IN
a/DT
fellow/JJ
Texan/NN
,/,
Democratic/JJ
Sen./NNP
Lloyd/NNP
Bentsen/NNP
,/,
last/JJ
month/NN
urged/VBD
U.S./NNP
Trade/NNP
Representative/NNP
Carla/NNP
Hills/NNP
to/TO
use/VB
Mr./NNP
Pickens/NNP
's/POS
experience/NN
in/IN
talks/NNS
with/IN
Tokyo/NNP
``/``
to/TO
highlight/VB
this/DT
problem/NN
facing/VBG
Americans/NNS
who/WP
seek/VBP
access/NN
to/TO
the/DT
Japanese/JJ
capital/NN
markets/NNS
./.
''/''
While/IN
Mr./NNP
Dallara/NNP
and/CC
Japanese/NNP
officials/NNS
say/VBP
the/DT
question/NN
of/IN
investors/NNS
'/POS
access/NN
to/TO
the/DT
U.S./NNP
and/CC
Japanese/JJ
markets/NNS
may/MD
get/VB
a/DT
disproportionate/JJ
share/NN
of/IN
the/DT
public/NN
's/POS
attention/NN
,/,
a/DT
number/NN
of/IN
other/JJ
important/JJ
economic/JJ
issues/NNS
will/MD
be/VB
on/IN
the/DT
table/NN
at/IN
next/JJ
week/NN
's/POS
talks/NNS
./.
Among/IN
them/PRP
are/VBP
differences/NNS
in/IN
savings/NNS
and/CC
investment/NN
rates/NNS
,/,
corporate/JJ
structures/NNS
and/CC
management/NN
,/,
and/CC
government/NN
spending/NN
./.
Each/DT
side/NN
has/VBZ
a/DT
litany/NN
of/IN
recommendations/NNS
for/IN
the/DT
other/JJ
./.
The/DT
U.S./NNP
says/VBZ
it/PRP
is/VBZ
anxious/JJ
for/IN
results/NNS
./.
``/``
We/PRP
feel/VBP
very/RB
strongly/RB
that/IN
we/PRP
really/RB
need/VBP
action/NN
across/IN
the/DT
full/JJ
range/NN
of/IN
issues/NNS
we/PRP
've/VBP
identified/VBN
,/,
and/CC
we/PRP
need/VBP
it/PRP
by/IN
next/JJ
spring/NN
,/,
''/''
Mr./NNP
Dallara/NNP
says/VBZ
./.
Both/DT
sides/NNS
have/VBP
agreed/VBN
that/IN
the/DT
talks/NNS
will/MD
be/VB
most/RBS
successful/JJ
if/IN
negotiators/NNS
start/VBP
by/IN
focusing/VBG
on/IN
the/DT
areas/NNS
that/WDT
can/MD
be/VB
most/RBS
easily/RB
changed/VBN
./.
But/CC
they/PRP
have/VBP
n't/RB
clarified/VBN
what/WP
those/DT
might/MD
be/VB
./.
After/IN
the/DT
first/JJ
set/NN
of/IN
meetings/NNS
two/CD
months/NNS
ago/RB
,/,
some/DT
U.S./NNP
officials/NNS
complained/VBD
that/IN
Japan/NNP
had/VBD
n't/RB
come/VBN
up/RP
with/IN
specific/JJ
changes/NNS
it/PRP
was/VBD
prepared/VBN
to/TO
make/VB
./.
The/DT
Japanese/NNS
retort/NN
that/IN
the/DT
first/JJ
round/NN
was/VBD
too/RB
early/JJ
to/TO
make/VB
concessions/NNS
./.
``/``
Just/RB
to/TO
say/VB
the/DT
distribution/NN
system/NN
is/VBZ
wrong/JJ
does/VBZ
n't/RB
mean/VB
anything/NN
,/,
''/''
says/VBZ
a/DT
Ministry/NNP
of/IN
International/NNP
Trade/NNP
and/CC
Industry/NNP
official/NN
./.
``/``
We/PRP
need/VBP
to/TO
clarify/VB
what/WP
exactly/RB
is/VBZ
wrong/JJ
with/IN
it/PRP
./.
''/''
That/DT
process/NN
of/IN
sorting/VBG
out/RP
specifics/NNS
is/VBZ
likely/JJ
to/TO
take/VB
time/NN
,/,
the/DT
Japanese/NNS
say/VBP
,/,
no/DT
matter/NN
how/WRB
badly/RB
the/DT
U.S./NNP
wants/VBZ
quick/JJ
results/NNS
./.
For/IN
instance/NN
,/,
at/IN
the/DT
first/JJ
meeting/NN
the/DT
two/CD
sides/NNS
could/MD
n't/RB
even/RB
agree/VB
on/IN
basic/JJ
data/NNS
used/VBN
in/IN
price/NN
discussions/NNS
./.
Since/IN
then/RB
,/,
a/DT
team/NN
of/IN
about/RB
15/CD
MITI/NNP
and/CC
U.S./NNP
Commerce/NNP
Department/NNP
officials/NNS
have/VBP
crossed/VBN
the/DT
globe/NN
gauging/VBG
consumer/NN
prices/NNS
./.
By/IN
Monday/NNP
,/,
they/PRP
hope/VBP
to/TO
have/VB
a/DT
sheaf/NN
of/IN
documents/NNS
both/DT
sides/NNS
can/MD
trust/VB
./.
``/``
Little/RB
by/IN
little/RB
,/,
there/EX
is/VBZ
progress/NN
,/,
''/''
says/VBZ
the/DT
MITI/NNP
official/NN
./.
``/``
Both/DT
sides/NNS
are/VBP
taking/VBG
action/NN
./.
''/''
Elisabeth/NNP
Rubinfien/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
While/IN
worry/NN
grows/VBZ
about/IN
big/JJ
Japanese/JJ
investments/NNS
in/IN
the/DT
U.S./NNP
,/,
Japan/NNP
's/POS
big/JJ
trading/NN
companies/NNS
are/VBP
rapidly/RB
increasing/VBG
their/PRP$
stake/NN
in/IN
America/NNP
's/POS
smaller/JJR
business/NN
./.
For/IN
Japan/NNP
,/,
the/DT
controversial/JJ
trend/NN
improves/VBZ
access/NN
to/TO
American/JJ
markets/NNS
and/CC
technology/NN
./.
But/CC
for/IN
small/JJ
American/JJ
companies/NNS
,/,
it/PRP
also/RB
provides/VBZ
a/DT
growing/VBG
source/NN
of/IN
capital/NN
and/CC
even/RB
marketing/NN
help/NN
./.
Take/VB
the/DT
deal/NN
with/IN
Candela/NNP
Laser/NNP
Corp./NNP
,/,
a/DT
Wayland/NNP
,/,
Mass./NNP
,/,
manufacturer/NN
of/IN
high-tech/JJ
medical/JJ
devices/NNS
,/,
which/WDT
three/CD
years/NNS
ago/RB
set/VBP
its/PRP$
sights/NNS
on/IN
Japan/NNP
as/IN
an/DT
export/NN
market/NN
./.
Partly/RB
to/TO
help/VB
clear/VB
the/DT
myriad/JJ
obstacles/NNS
facing/VBG
any/DT
overseas/JJ
company/NN
trying/VBG
to/TO
penetrate/VB
Japan/NNP
,/,
tiny/JJ
Candela/NNP
turned/VBD
to/TO
Mitsui/NNP
&/CC
Co./NNP
,/,
one/CD
of/IN
Japan/NNP
's/POS
largest/JJS
trading/VBG
companies/NNS
,/,
for/IN
investment/NN
./.
In/IN
a/DT
joint-venture/JJ
deal/NN
,/,
Mitsui/NNP
guided/VBD
Candela/NNP
through/IN
Tokyo/NNP
's/POS
bureaucratic/JJ
maze/NN
./.
It/PRP
eventually/RB
secured/VBD
Ministry/NNP
of/IN
Health/NNP
import/NN
approval/NN
for/IN
two/CD
Candela/NNP
laser/NN
products/NNS
--/:
one/CD
that/WDT
breaks/VBZ
up/RP
kidney/NN
stones/NNS
and/CC
another/DT
that/WDT
treats/VBZ
skin/NN
lesions/NNS
./.
At/IN
last/JJ
count/NN
,/,
Candela/NNP
had/VBD
sold/VBN
$/$
4/CD
million/CD
of/IN
its/PRP$
medical/JJ
devices/NNS
in/IN
Japan/NNP
./.
The/DT
deal/NN
also/RB
gave/VBD
Mitsui/NNP
access/NN
to/TO
a/DT
high-tech/JJ
medical/JJ
product/NN
./.
``/``
They/PRP
view/VBP
this/DT
as/IN
a/DT
growth/NN
area/NN
so/IN
they/PRP
went/VBD
about/IN
it/PRP
with/IN
a/DT
systematic/JJ
approach/NN
,/,
''/''
says/VBZ
Richard/NNP
Olsen/NNP
,/,
a/DT
Candela/NNP
vice/NN
president/NN
./.
Indeed/RB
,/,
for/IN
many/JJ
Japanese/JJ
trading/NN
companies/NNS
,/,
the/DT
favorite/JJ
U.S./NNP
small/JJ
business/NN
is/VBZ
one/CD
whose/WP$
research/NN
and/CC
development/NN
can/MD
be/VB
milked/VBN
for/IN
future/JJ
Japanese/JJ
use/NN
./.
The/DT
Japanese/JJ
companies/NNS
bankroll/VBP
many/JJ
small/JJ
U.S./NNP
companies/NNS
with/IN
promising/JJ
products/NNS
or/CC
ideas/NNS
,/,
frequently/RB
putting/VBG
their/PRP$
money/NN
behind/IN
projects/NNS
that/IN
commercial/JJ
banks/NNS
wo/MD
n't/RB
touch/VB
./.
Japanese/JJ
companies/NNS
have/VBP
financed/VBN
small/JJ
and/CC
medium-sized/JJ
U.S./NNP
firms/NNS
for/IN
years/NNS
,/,
but/CC
in/IN
recent/JJ
months/NNS
,/,
the/DT
pace/NN
has/VBZ
taken/VBN
off/RP
./.
In/IN
the/DT
first/JJ
half/NN
of/IN
1989/CD
alone/RB
,/,
Japanese/JJ
corporations/NNS
invested/VBD
$/$
214/CD
million/CD
in/IN
minority/NN
positions/NNS
in/IN
U.S./NNP
companies/NNS
,/,
a/DT
61/CD
%/NN
rise/NN
from/IN
the/DT
figure/NN
for/IN
all/DT
of/IN
1987/CD
,/,
reports/VBZ
Venture/NNP
Economics/NNP
Inc/NNP
./.
The/DT
Needham/NNP
,/,
Mass./NNP
,/,
concern/NN
tracks/VBZ
investments/NNS
in/IN
new/JJ
businesses/NNS
./.
In/IN
addition/NN
,/,
of/IN
course/NN
,/,
some/DT
of/IN
the/DT
Japanese/JJ
investments/NNS
involved/VBD
outright/JJ
purchase/NN
of/IN
small/JJ
U.S./NNP
firms/NNS
./.
Heightened/JJ
Japanese/JJ
interest/NN
in/IN
American/JJ
small/JJ
business/NN
parallels/VBZ
an/DT
acceleration/NN
of/IN
investments/NNS
giving/VBG
Japanese/JJ
companies/NNS
control/NN
of/IN
large/JJ
,/,
highly/RB
visible/JJ
U.S./NNP
corporations/NNS
,/,
such/JJ
as/IN
Columbia/NNP
Pictures/NNP
Entertainment/NNP
Inc/NNP
./.
Only/RB
this/DT
week/NN
,/,
it/PRP
was/VBD
announced/VBN
that/IN
Mitsubishi/NNP
Estate/NNP
Co./NNP
had/VBD
acquired/VBN
a/DT
51/CD
%/NN
stake/NN
in/IN
Rockefeller/NNP
Group/NNP
,/,
which/WDT
owns/VBZ
New/NNP
York/NNP
's/POS
prestigious/JJ
Rockefeller/NNP
Center/NNP
./.
While/IN
the/DT
small/JJ
deals/NNS
are/VBP
far/RB
less/RBR
conspicuous/JJ
,/,
they/PRP
add/VBP
to/TO
Japanese/JJ
penetration/NN
of/IN
the/DT
U.S./NNP
market/NN
./.
As/IN
the/DT
deals/NNS
also/RB
improve/VBP
Japanese/JJ
access/NN
to/TO
American/JJ
technology/NN
and/CC
market/NN
knowledge/NN
,/,
they/PRP
feed/VBP
American/JJ
anxieties/NNS
in/IN
this/DT
area/NN
,/,
too/RB
./.
Even/RB
a/DT
low-tech/JJ
product/NN
like/IN
plate/NN
glass/NN
can/MD
catch/VB
a/DT
trading/NN
company/NN
's/POS
fancy/NN
if/IN
there/EX
's/VBZ
a/DT
strategic/JJ
fit/NN
./.
Free/NNP
State/NNP
Glass/NNP
Industries/NNP
of/IN
Warrenton/NNP
,/,
Va./NNP
,/,
a/DT
small/JJ
fabricator/NN
of/IN
architectural/JJ
glass/NN
,/,
was/VBD
foundering/VBG
under/IN
its/PRP$
original/JJ
management/NN
./.
Last/JJ
year/NN
,/,
Mitsubishi/NNP
International/NNP
Corp./NNP
,/,
the/DT
New/NNP
York-based/NNP
arm/NN
of/IN
Mitsubishi/NNP
Corp./NNP
,/,
bought/VBD
controlling/VBG
interest/NN
in/IN
the/DT
glass/NN
company/NN
in/IN
a/DT
joint/JJ
venture/NN
with/IN
Ronald/NNP
Bodner/NNP
,/,
a/DT
glass/NN
industry/NN
executive/NN
and/CC
Mitsubishi/NNP
consultant/NN
./.
The/DT
deal/NN
is/VBZ
chiefly/RB
designed/VBN
to/TO
give/VB
Mitsubishi/NNP
a/DT
window/NN
on/IN
the/DT
U.S./NNP
glass/NN
industry/NN
,/,
says/VBZ
Ichiro/NNP
Wakui/NNP
,/,
an/DT
executive/NN
in/IN
Mitsubishi/NNP
's/POS
general/JJ
merchandise/NN
department/NN
in/IN
New/NNP
York/NNP
./.
``/``
It/PRP
's/VBZ
not/RB
just/RB
a/DT
simple/JJ
investment/NN
in/IN
a/DT
small/JJ
company/NN
,/,
''/''
Mr./NNP
Wakui/NNP
says/VBZ
./.
``/``
We/PRP
want/VBP
to/TO
see/VB
the/DT
glass/NN
market/NN
from/IN
the/DT
inside/NN
,/,
not/RB
the/DT
outside/NN
./.
''/''
Mitsubishi/NNS
's/POS
investment/NN
in/IN
Free/NNP
State/NNP
is/VBZ
``/``
very/RB
small/JJ
.../:
less/JJR
than/IN
$/$
4/CD
million/CD
,/,
''/''
Mr./NNP
Wakui/NNP
says/VBZ
./.
Mr./NNP
Bodner/NNP
declines/VBZ
to/TO
comment/VB
on/IN
the/DT
arrangement/NN
./.
Trading/NN
companies/NNS
such/JJ
as/IN
Mitsubishi/NNP
,/,
Mitsui/NNP
,/,
C./NNP
Itoh/NNP
&/CC
Co./NNP
and/CC
Nissho-Iwai/NNP
Corp./NNP
,/,
which/WDT
make/VBP
many/JJ
of/IN
the/DT
Japanese/JJ
investments/NNS
in/IN
small/JJ
U.S./NNP
concerns/NNS
,/,
have/VBP
no/DT
U.S./NNP
counterpart/NN
./.
These/DT
vertically/RB
integrated/VBN
combines/NNS
,/,
some/DT
of/IN
which/WDT
got/VBD
their/PRP$
start/NN
in/IN
Japan/NNP
's/POS
feudal/JJ
period/NN
,/,
deal/VBP
globally/RB
in/IN
commodities/NNS
,/,
construction/NN
and/CC
manufacturing/VBG
./.
They/PRP
operate/VBP
ships/NNS
and/CC
banks/NNS
./.
``/``
All/DT
the/DT
``/``
sogo-shosha/NN
''/''
are/VBP
looking/VBG
for/IN
new/JJ
business/NN
,/,
''/''
says/VBZ
Arthur/NNP
Klauser/NNP
,/,
adviser/NN
to/TO
the/DT
president/NN
of/IN
Mitsui/NNP
,/,
U.S.A./NNP
,/,
using/VBG
the/DT
Japanese/NNP
term/NN
for/IN
the/DT
largest/JJS
of/IN
the/DT
global/JJ
trading/VBG
houses/NNS
./.
Adds/VBZ
Takeshi/NNP
Kondo/NNP
,/,
senior/JJ
vice/NN
president/NN
of/IN
C./NNP
Itoh/NNP
America/NNP
Inc./NNP
:/:
``/``
We/PRP
have/VBP
a/DT
great/JJ
interest/NN
in/IN
making/VBG
investments/NNS
,/,
particularly/RB
in/IN
new/JJ
ventures/NNS
./.
''/''
A/DT
host/NN
of/IN
electronics/NNS
firms/NNS
in/IN
California/NNP
's/POS
Silicon/NNP
Valley/NNP
were/VBD
financed/VBN
with/IN
trading-company/NN
venture/NN
capital/NN
./.
Profit/NN
,/,
at/IN
least/JJS
in/IN
the/DT
short/JJ
term/NN
,/,
is/VBZ
usually/RB
a/DT
secondary/JJ
goal/NN
./.
``/``
Strategic/JJ
objectives/NNS
,/,
not/RB
financial/JJ
return/NN
,/,
drive/VBP
many/JJ
of/IN
the/DT
deals/NNS
,/,
''/''
says/VBZ
a/DT
Venture/NNP
Economics/NNP
spokesman/NN
./.
In/IN
investing/VBG
on/IN
the/DT
basis/NN
of/IN
future/JJ
transactions/NNS
,/,
a/DT
role/NN
often/RB
performed/VBN
by/IN
merchant/NN
banks/NNS
,/,
trading/NN
companies/NNS
can/MD
cut/VB
through/IN
the/DT
logjam/NN
that/IN
small-company/NN
owners/NNS
often/RB
face/VBP
with/IN
their/PRP$
local/JJ
commercial/JJ
banks/NNS
./.
``/``
It/PRP
's/VBZ
the/DT
classic/JJ
problem/NN
of/IN
the/DT
small/JJ
businessman/NN
,/,
''/''
says/VBZ
Malcolm/NNP
Davies/NNP
,/,
managing/VBG
director/NN
of/IN
Trading/NNP
Alliance/NNP
Corp./NNP
of/IN
New/NNP
York/NNP
./.
``/``
People/NNS
are/VBP
queuing/VBG
at/IN
the/DT
door/NN
to/TO
take/VB
his/PRP$
product/NN
but/CC
he/PRP
does/VBZ
n't/RB
have/VB
the/DT
working/VBG
capital/NN
to/TO
make/VB
the/DT
thing/NN
and/CC
commercial/JJ
banks/NNS
are/VBP
very/RB
unsympathetic/JJ
./.
They/PRP
want/VBP
assets/NNS
,/,
they/PRP
want/VBP
a/DT
balance/NN
sheet/NN
,/,
which/WDT
has/VBZ
no/DT
relation/NN
to/TO
the/DT
business/NN
a/DT
company/NN
can/MD
generate/VB
./.
''/''
Adds/VBZ
Mitsui/NNP
's/POS
Mr./NNP
Klauser/NNP
:/:
``/``
Unlike/IN
corporations/NNS
in/IN
this/DT
country/NN
,/,
trading/NN
companies/NNS
are/VBP
n't/RB
so/RB
much/RB
interested/JJ
in/IN
a/DT
high/JJ
return/NN
on/IN
investment/NN
as/IN
they/PRP
are/VBP
on/IN
increasing/VBG
trade/NN
flows/NNS
./.
To/TO
the/DT
extent/NN
they/PRP
can/MD
do/VB
this/DT
,/,
they/PRP
're/VBP
quite/RB
content/JJ
to/TO
get/VB
a/DT
return/NN
on/IN
investment/NN
of/IN
1/CD
%/NN
to/TO
2/CD
%/NN
./.
''/''
Mr./NNP
Klauser/NNP
says/VBZ
Mitsui/NNP
has/VBZ
75/CD
U.S./NNP
subsidiaries/NNS
in/IN
which/WDT
it/PRP
holds/VBZ
35/CD
%/NN
interest/NN
or/CC
more/JJR
and/CC
the/DT
trading/NN
company/NN
hopes/VBZ
to/TO
double/VB
the/DT
number/NN
of/IN
its/PRP$
U.S./NNP
affiliates/NNS
in/IN
1990/CD
./.
Sales/NNS
by/IN
these/DT
subsidiaries/NNS
in/IN
the/DT
fiscal/JJ
year/NN
ending/VBG
last/JJ
March/NNP
were/VBD
more/JJR
than/IN
$/$
17/CD
billion/CD
./.
A/DT
1/CD
%/NN
to/TO
2/CD
%/NN
return/NN
on/IN
$/$
17/CD
billion/CD
``/``
ai/VBP
n't/RB
hay/NN
,/,
''/''
Mr./NNP
Klauser/NNP
says/VBZ
./.
Hudson/NNP
General/NNP
Corp./NNP
's/POS
president/NN
and/CC
chief/JJ
executive/NN
officer/NN
,/,
Alan/NNP
J./NNP
Stearn/NNP
,/,
resigned/VBD
./.
Mr./NNP
Stearn/NNP
,/,
46/CD
years/NNS
old/JJ
,/,
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
A/DT
company/NN
spokesman/NN
declined/VBD
to/TO
elaborate/VB
on/IN
the/DT
departure/NN
./.
Hudson/NNP
General/NNP
,/,
which/WDT
provides/VBZ
maintenance/NN
,/,
fueling/NN
and/CC
other/JJ
services/NNS
to/TO
airlines/NNS
and/CC
airports/NNS
,/,
reported/VBD
a/DT
loss/NN
for/IN
its/PRP$
most/RBS
recent/JJ
fiscal/NN
year/NN
and/CC
last/JJ
month/NN
omitted/VBD
the/DT
semiannual/JJ
dividend/NN
on/IN
its/PRP$
common/JJ
shares/NNS
./.
Mr./NNP
Stearn/NNP
,/,
who/WP
had/VBD
been/VBN
with/IN
the/DT
company/NN
more/JJR
than/IN
20/CD
years/NNS
and/CC
had/VBD
been/VBN
president/NN
since/IN
1984/CD
,/,
will/MD
act/VB
as/IN
a/DT
consultant/NN
to/TO
Hudson/NNP
General/NNP
./.
His/PRP$
duties/NNS
as/IN
chief/JJ
executive/NN
will/MD
be/VB
assumed/VBN
by/IN
Chairman/NNP
Jay/NNP
B./NNP
Langner/NNP
./.
For/IN
10/CD
years/NNS
,/,
Genie/NNP
Driskill/NNP
went/VBD
to/TO
her/PRP$
neighborhood/NN
bank/NN
because/IN
it/PRP
was/VBD
convenient/JJ
./.
A/DT
high-balance/JJ
customer/NN
that/IN
banks/NNS
pine/VBP
for/RP
,/,
she/PRP
did/VBD
n't/RB
give/VB
much/JJ
thought/NN
to/TO
the/DT
rates/NNS
she/PRP
was/VBD
receiving/VBG
,/,
nor/CC
to/TO
the/DT
fees/NNS
she/PRP
was/VBD
paying/VBG
./.
But/CC
in/IN
August/NNP
,/,
First/JJ
Atlanta/NNP
National/NNP
Bank/NNP
introduced/VBD
its/PRP$
Crown/NNP
Account/NNP
,/,
a/DT
package/NN
designed/VBN
to/TO
lure/VB
customers/NNS
such/JJ
as/IN
Ms./NNP
Driskill/NNP
./.
Among/IN
other/JJ
things/NNS
,/,
it/PRP
included/VBD
checking/VBG
,/,
safe/JJ
deposit/NN
box/NN
and/CC
credit/NN
card/NN
--/:
all/DT
for/IN
free/JJ
--/:
plus/RB
a/DT
good/JJ
deal/NN
on/IN
installment/NN
loans/NNS
./.
All/DT
she/PRP
had/VBD
to/TO
do/VB
was/VBD
put/VB
$/$
15,000/CD
in/IN
a/DT
certificate/NN
of/IN
deposit/NN
,/,
or/CC
qualify/VB
for/IN
a/DT
$/$
10,000/CD
personal/JJ
line/NN
of/IN
credit/NN
./.
``/``
I/PRP
deserve/VBP
something/NN
for/IN
my/PRP$
loyalty/NN
,/,
''/''
she/PRP
says/VBZ
./.
She/PRP
took/VBD
her/PRP$
business/NN
to/TO
First/NNP
Atlanta/NNP
./.
So/IN
it/PRP
goes/VBZ
in/IN
the/DT
competitive/JJ
world/NN
of/IN
consumer/NN
banking/VBG
these/DT
days/NNS
./.
For/IN
nearly/RB
a/DT
decade/NN
,/,
banks/NNS
have/VBP
competed/VBN
for/IN
customers/NNS
primarily/RB
with/IN
the/DT
interest/NN
rates/NNS
they/PRP
pay/VBP
on/IN
their/PRP$
deposits/NNS
and/CC
charge/VB
on/IN
their/PRP$
loans/NNS
./.
The/DT
competitive/JJ
rates/NNS
were/VBD
generally/RB
offset/VBN
by/IN
hefty/JJ
fees/NNS
on/IN
various/JJ
services/NNS
./.
But/CC
many/JJ
banks/NNS
are/VBP
turning/VBG
away/RB
from/IN
strict/JJ
price/NN
competition/NN
./.
Instead/RB
,/,
they/PRP
are/VBP
trying/VBG
to/TO
build/VB
customer/NN
loyalty/NN
by/IN
bundling/VBG
their/PRP$
services/NNS
into/IN
packages/NNS
and/CC
targeting/VBG
them/PRP
to/TO
small/JJ
segments/NNS
of/IN
the/DT
population/NN
./.
``/``
You/PRP
're/VBP
dead/JJ
in/IN
the/DT
water/NN
if/IN
you/PRP
are/VBP
n't/RB
segmenting/VBG
the/DT
market/NN
,/,
''/''
says/VBZ
Anne/NNP
Moore/NNP
,/,
president/NN
of/IN
Synergistics/NNP
Research/NNP
Corp./NNP
,/,
a/DT
bank/NN
consulting/NN
firm/NN
in/IN
Atlanta/NNP
./.
NCNB/NNP
Corp./NNP
of/IN
Charlotte/NNP
,/,
N.C./NNP
,/,
recently/RB
introduced/VBN
its/PRP$
Financial/NNP
Connections/NNP
Program/NNP
aimed/VBD
at/IN
young/JJ
adults/NNS
just/RB
starting/VBG
careers/NNS
./.
The/DT
program/NN
not/RB
only/RB
offers/VBZ
a/DT
pre-approved/JJ
car/NN
loan/NN
up/IN
to/TO
$/$
18,000/CD
,/,
but/CC
throws/VBZ
in/RP
a/DT
special/JJ
cash-flow/JJ
statement/NN
to/TO
help/VB
in/IN
saving/VBG
money/NN
./.
In/IN
September/NNP
,/,
Union/NNP
Planters/NNP
Corp./NNP
of/IN
Memphis/NNP
,/,
Tenn./NNP
,/,
launched/VBD
The/DT
Edge/NNP
account/NN
,/,
a/DT
package/NN
designed/VBN
for/IN
the/DT
``/``
thirtysomething/NN
''/''
crowd/NN
with/IN
services/NNS
that/WDT
include/VBP
a/DT
credit/NN
card/NN
and/CC
line/NN
of/IN
credit/NN
with/IN
no/DT
annual/JJ
fees/NNS
,/,
and/CC
a/DT
full/JJ
percentage/NN
point/NN
off/RB
on/IN
installment/NN
loans/NNS
./.
The/DT
theory/NN
:/:
Such/JJ
individuals/NNS
,/,
many/JJ
with/IN
young/JJ
children/NNS
,/,
are/VBP
in/IN
their/PRP$
prime/JJ
borrowing/VBG
years/NNS
--/:
and/JJ
,/,
having/VBG
borrowed/VBN
from/IN
the/DT
bank/NN
,/,
they/PRP
may/MD
continue/VB
to/TO
use/VB
it/PRP
for/IN
other/JJ
services/NNS
in/IN
later/JJ
years/NNS
./.
For/IN
some/DT
time/NN
,/,
banks/NNS
have/VBP
been/VBN
aiming/VBG
packages/NNS
at/IN
the/DT
elderly/JJ
,/,
the/DT
demographic/JJ
segment/NN
with/IN
the/DT
highest/JJS
savings/NNS
./.
Those/DT
efforts/NNS
are/VBP
being/VBG
stepped/VBD
up/RP
./.
Judie/NNP
MacDonald/NNP
,/,
vice/NN
president/NN
of/IN
retail/JJ
sales/NNS
at/IN
Barnett/NNP
Banks/NNP
Inc./NNP
of/IN
Jacksonville/NNP
,/,
Fla./NNP
,/,
says/VBZ
the/DT
company/NN
now/RB
targets/VBZ
sub-segments/NNS
within/IN
the/DT
market/NN
by/IN
tailoring/VBG
its/PRP$
popular/JJ
Seniors/NNP
Partners/NNP
Program/NNP
to/TO
various/JJ
life/NN
styles/NNS
./.
``/``
Varying/JJ
age/NN
,/,
geography/NN
and/CC
life-style/NN
differences/NNS
create/VBP
numerous/JJ
sub-markets/NNS
,/,
''/''
Ms./NNP
MacDonald/NNP
says/VBZ
./.
She/PRP
says/VBZ
individual/JJ
Barnett/NNP
branches/NNS
can/MD
add/VB
different/JJ
benefits/NNS
to/TO
their/PRP$
Seniors/NNP
Partners/NNP
package/NN
--/:
such/JJ
as/IN
athletic/JJ
activities/NNS
or/CC
travel/NN
clubs/NNS
--/:
to/JJ
appeal/NN
to/TO
local/JJ
market/NN
interests/NNS
./.
``/``
An/DT
active/JJ
55-year-old/NN
in/IN
Boca/NNP
Raton/NNP
may/MD
care/VB
more/RBR
about/IN
Senior/NNP
Olympic/NNP
games/NNS
,/,
while/IN
a/DT
75-year-old/CD
in/IN
Panama/NNP
City/NNP
may/MD
care/VB
more/RBR
about/IN
a/DT
seminar/NN
on/IN
health/NN
,/,
''/''
she/PRP
says/VBZ
./.
Banks/NNS
have/VBP
tried/VBN
packaging/VBG
before/RB
./.
In/IN
1973/CD
,/,
Wells/NNP
Fargo/NNP
&/CC
Co./NNP
of/IN
San/NNP
Francisco/NNP
launched/VBD
the/DT
Gold/NNP
Account/NNP
,/,
which/WDT
included/VBD
free/JJ
checking/NN
,/,
a/DT
credit/NN
card/NN
,/,
safe-deposit/JJ
box/NN
and/CC
travelers/NNS
checks/NNS
for/IN
a/DT
$/$
3/CD
monthly/JJ
fee/NN
./.
The/DT
concept/NN
begot/VBD
a/DT
slew/NN
of/IN
copycats/NNS
,/,
but/CC
the/DT
banks/NNS
stopped/VBD
promoting/VBG
the/DT
packages/NNS
./.
One/CD
big/JJ
reason/NN
:/:
thin/JJ
margins/NNS
./.
Many/JJ
banks/NNS
,/,
particularly/RB
smaller/JJR
ones/NNS
,/,
were/VBD
slow/JJ
to/TO
computerize/VB
and/CC
could/MD
n't/RB
target/VB
market/NN
niches/NNS
that/WDT
would/MD
have/VB
made/VBN
the/DT
programs/NNS
more/RBR
profitable/JJ
./.
As/IN
banks/NNS
'/POS
earnings/NNS
were/VBD
squeezed/VBN
in/IN
the/DT
mid-1970s/CD
,/,
the/DT
emphasis/NN
switched/VBN
to/TO
finding/VBG
ways/NNS
to/TO
cut/VB
costs/NNS
./.
But/CC
now/RB
computers/NNS
are/VBP
enabling/VBG
more/JJR
banks/NNS
to/TO
analyze/VB
their/PRP$
customers/NNS
by/IN
age/NN
,/,
income/NN
and/CC
geography/NN
./.
They/PRP
are/VBP
better/RBR
able/JJ
to/TO
get/VB
to/TO
those/DT
segments/NNS
in/IN
the/DT
wake/NN
of/IN
the/DT
deregulation/NN
that/WDT
began/VBD
in/IN
the/DT
late/JJ
1970s/CD
./.
Deregulation/NN
has/VBZ
effectively/RB
removed/VBN
all/DT
restrictions/NNS
on/IN
what/WP
banks/NNS
can/MD
pay/VB
for/IN
deposits/NNS
,/,
as/RB
well/RB
as/IN
opened/VBN
up/RP
the/DT
field/NN
for/IN
new/JJ
products/NNS
such/JJ
as/IN
high-rate/JJ
CDs/NNS
./.
Where/WRB
a/DT
bank/NN
once/RB
offered/VBD
a/DT
standard/JJ
passbook/NN
savings/NNS
account/NN
,/,
it/PRP
began/VBD
offering/VBG
money-market/JJ
accounts/NNS
,/,
certificates/NNS
of/IN
deposit/NN
and/CC
interest-bearing/JJ
checking/NN
,/,
and/CC
staggering/JJ
rates/NNS
based/VBN
on/IN
the/DT
size/NN
of/IN
deposits/NNS
./.
The/DT
competition/NN
has/VBZ
grown/VBN
more/RBR
intense/JJ
as/IN
bigger/JJR
banks/NNS
such/JJ
as/IN
Norwest/NNP
Corp./NNP
of/IN
Minneapolis/NNP
and/CC
Chemical/NNP
Banking/NNP
Corp./NNP
of/IN
New/NNP
York/NNP
extend/VBP
their/PRP$
market-share/JJ
battles/NNS
into/IN
small/JJ
towns/NNS
across/IN
the/DT
nation/NN
./.
``/``
Today/NN
,/,
a/DT
banker/NN
is/VBZ
worrying/VBG
about/IN
local/JJ
,/,
regional/JJ
and/CC
money-center/JJ
banks/NNS
thrifts/NNS
and/CC
credit/NN
unions/NNS
,/,
''/''
says/VBZ
Ms./NNP
Moore/NNP
at/IN
Synergistics/NNP
Research/NNP
./.
``/``
So/IN
people/NNS
who/WP
were/VBD
n't/RB
even/RB
thinking/VBG
about/IN
targeting/VBG
10/CD
years/NNS
ago/RB
are/VBP
scrambling/VBG
to/TO
define/VB
their/PRP$
customer/NN
base/NN
./.
''/''
The/DT
competition/NN
has/VBZ
cultivated/VBN
a/DT
much/RB
savvier/JJR
consumer/NN
./.
``/``
The/DT
average/JJ
household/NN
will/MD
spread/VB
19/CD
accounts/NNS
over/IN
a/DT
dozen/NN
financial/JJ
institutions/NNS
,/,
''/''
says/VBZ
Michael/NNP
P./NNP
Sullivan/NNP
,/,
who/WP
runs/VBZ
his/PRP$
own/JJ
bank/NN
consulting/NN
firm/NN
in/IN
Charlotte/NNP
,/,
N.C/NNP
./.
``/``
This/DT
much/JJ
fragmentation/NN
makes/VBZ
attracting/VBG
and/CC
keeping/VBG
today/NN
's/POS
rate-sensitive/JJ
customers/NNS
costly/JJ
./.
''/''
Packages/NNS
encourage/VBP
loyalty/NN
by/IN
rewarding/VBG
customers/NNS
for/IN
doing/VBG
the/DT
bulk/NN
of/IN
their/PRP$
banking/NN
in/IN
one/CD
place/NN
./.
For/IN
their/PRP$
troubles/NNS
,/,
the/DT
banks/NNS
get/VBP
a/DT
larger/JJR
captive/NN
audience/NN
that/WDT
is/VBZ
less/RBR
likely/JJ
to/TO
move/VB
at/IN
the/DT
drop/NN
of/IN
a/DT
rate/NN
./.
The/DT
more/JJR
accounts/NNS
customers/NNS
have/VBP
,/,
Mr./NNP
Sullivan/NNP
says/VBZ
,/,
the/DT
more/RBR
likely/JJ
they/PRP
are/VBP
to/TO
be/VB
attracted/VBN
to/TO
a/DT
package/NN
--/:
and/NN
to/TO
be/VB
loyal/JJ
to/TO
the/DT
bank/NN
that/WDT
offers/VBZ
it/PRP
./.
That/DT
can/MD
pay/VB
off/RP
down/IN
the/DT
road/NN
as/IN
customers/NNS
,/,
especially/RB
the/DT
younger/JJR
ones/NNS
,/,
change/VBP
from/IN
borrowers/NNS
to/TO
savers\/investors/NNS
./.
Packaging/NN
has/VBZ
some/DT
drawbacks/NNS
./.
The/DT
additional/JJ
technology/NN
,/,
personnel/NNS
training/NN
and/CC
promotional/JJ
effort/NN
can/MD
be/VB
expensive/JJ
./.
Chemical/NNP
Bank/NNP
spent/VBD
more/JJR
than/IN
$/$
50/CD
million/CD
to/TO
introduce/VB
its/PRP$
ChemPlus/NNP
line/NN
,/,
several/JJ
packages/NNS
aimed/VBN
at/IN
different/JJ
segments/NNS
,/,
in/IN
1986/CD
,/,
according/VBG
to/TO
Thomas/NNP
Jacob/NNP
,/,
senior/JJ
vice/NN
president/NN
of/IN
marketing/NN
./.
``/``
It/PRP
's/VBZ
not/RB
easy/JJ
to/TO
roll/VB
out/RP
something/NN
that/RB
comprehensive/JJ
,/,
and/CC
make/VB
it/PRP
pay/VB
,/,
''/''
Mr./NNP
Jacob/NNP
says/VBZ
./.
Still/RB
,/,
bankers/NNS
expect/VBP
packaging/NN
to/TO
flourish/VB
,/,
primarily/RB
because/IN
more/JJR
customers/NNS
are/VBP
demanding/VBG
that/IN
financial/JJ
services/NNS
be/VB
tailored/VBN
to/TO
their/PRP$
needs/NNS
./.
``/``
These/DT
days/NNS
,/,
banking/NN
customers/NNS
walk/VBP
in/IN
the/DT
door/NN
expecting/VBG
you/PRP
to/TO
have/VB
a/DT
package/NN
especially/RB
for/IN
them/PRP
,/,
''/''
Ms./NNP
Moore/NNP
says/VBZ
./.
Some/DT
banks/NNS
are/VBP
already/RB
moving/VBG
in/IN
that/DT
direction/NN
,/,
according/VBG
to/TO
Alvin/NNP
T./NNP
Sale/NNP
,/,
marketing/NN
director/NN
at/IN
First/NNP
Union/NNP
Corp./NNP
in/IN
Charlotte/NNP
./.
First/NNP
Union/NNP
,/,
he/PRP
says/VBZ
,/,
now/RB
has/VBZ
packages/NNS
for/IN
seven/CD
customer/NN
groups/NNS
./.
Soon/RB
,/,
it/PRP
will/MD
split/VB
those/DT
into/IN
30/CD
./.
Says/VBZ
Mr./NNP
Sale/NNP
:/:
``/``
I/PRP
think/VBP
more/JJR
banks/NNS
are/VBP
starting/VBG
to/TO
realize/VB
that/IN
we/PRP
have/VBP
to/TO
be/VB
more/JJR
like/IN
the/DT
department/NN
store/NN
,/,
not/RB
the/DT
boutique/NN
./.
''/''
IRAs/NNS
./.
SHAREDATA/NNP
Inc./NNP
said/VBD
it/PRP
will/MD
amend/VB
a/DT
registration/NN
statement/NN
filed/VBN
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
to/TO
delete/VB
a/DT
plan/NN
to/TO
sell/VB
500,000/CD
newly/RB
issued/VBN
common/JJ
shares/NNS
./.
The/DT
Chandler/NNP
,/,
Ariz./NNP
,/,
company/NN
said/VBD
it/PRP
will/MD
resubmit/VB
the/DT
registration/NN
to/TO
cover/VB
only/RB
the/DT
2.3/CD
million/CD
warrants/NNS
,/,
each/DT
exercisable/JJ
for/IN
the/DT
purchase/NN
of/IN
one/CD
common/JJ
share/NN
./.
Currently/NNP
,/,
ShareData/NNP
has/VBZ
about/RB
4.1/CD
million/CD
common/JJ
shares/NNS
outstanding/JJ
./.
ShareData/NNP
develops/VBZ
and/CC
markets/VBZ
low-cost/JJ
software/NN
,/,
peripheral/JJ
equipment/NN
and/CC
accessories/NNS
for/IN
computers/NNS
./.
Five/CD
things/NNS
you/PRP
can/MD
do/VB
for/IN
$/$
15,000/CD
or/CC
less/JJR
:/:
1/LS
./.
Buy/VB
a/DT
new/JJ
Chevrolet/NNP
./.
2/LS
./.
Take/VB
a/DT
Hawaiian/JJ
vacation/NN
./.
3/LS
./.
Send/VB
your/PRP$
child/NN
to/TO
a/DT
university/NN
./.
4/LS
./.
Buy/VB
a/DT
diamond/NN
necklace/NN
./.
5/LS
./.
Make/VB
a/DT
lasting/JJ
difference/NN
in/IN
the/DT
regulatory/JJ
life/NN
of/IN
an/DT
American/JJ
savings-and-loan/JJ
association/NN
through/IN
the/DT
Foster/NNP
Corporate/NNP
Parents/NNP
Plan/NNP
./.
Americans/NNS
today/NN
spend/VBP
$/$
15,000/CD
like/IN
pocket/NN
change/NN
--/:
they/PRP
do/VBP
n't/RB
think/VB
much/JJ
about/IN
it/PRP
./.
But/CC
for/IN
an/DT
ailing/VBG
savings-and-loan/JJ
association/NN
--/:
teetering/VBG
on/IN
insolvency/NN
--/:
it/PRP
can/MD
lead/VB
to/TO
safety/NN
from/IN
imminent/JJ
demise/NN
and/CC
to/TO
a/DT
future/NN
full/JJ
of/IN
promise/NN
./.
Your/PRP$
$/$
15,000/CD
will/MD
help/VB
keep/VB
a/DT
needy/JJ
savings/NNS
and/CC
loan/NN
solvent/JJ
--/:
and/CC
out/IN
of/IN
the/DT
federal/JJ
budget/NN
deficit/NN
./.
As/IN
a/DT
Foster/NNP
Corporate/NNP
Parent/NNP
,/,
you/PRP
'll/MD
be/VB
helping/VBG
a/DT
neighborhood/NN
S&L/NN
in/IN
areas/NNS
crucial/JJ
to/TO
its/PRP$
survival/NN
./.
Like/IN
healthy/JJ
regulatory/JJ
capital/NN
./.
A/DT
steady/JJ
deposit/NN
base/NN
./.
Performing/VBG
loans/NNS
./.
At/IN
the/DT
same/JJ
time/NN
,/,
you/PRP
'll/MD
give/VB
your/PRP$
Foster/NNP
Savings/NNP
Institution/NNP
the/DT
gift/NN
of/IN
hope/NN
and/CC
freedom/NN
from/IN
the/DT
federal/JJ
regulators/NNS
who/WP
want/VBP
to/TO
close/VB
its/PRP$
doors/NNS
--/:
for/IN
good/NN
./.
As/IN
a/DT
Foster/NNP
Corporate/NNP
Parent/NNP
,/,
you/PRP
will/MD
experience/VB
the/DT
same/JJ
joy/NN
felt/VBD
by/IN
Robert/NNP
Bass/NNP
,/,
Lewis/NNP
Ranieri/NNP
,/,
William/NNP
Simon/NNP
and/CC
others/NNS
,/,
who/WP
find/VBP
ways/NNS
to/TO
help/VB
troubled/VBN
savings/NNS
institutions/NNS
and/CC
their/PRP$
employees/NNS
help/VB
themselves/PRP
./.
That/DT
builds/VBZ
confidence/NN
,/,
self/NN
sufficiency/NN
,/,
not/RB
to/TO
mention/VB
critical/JJ
regulatory/JJ
net/NN
worth/NN
./.
Do/VBP
n't/RB
wait/VB
--/:
a/DT
savings/NNS
institution/NN
needs/VBZ
your/PRP$
help/NN
now/RB
!/.
Every/DT
day/NN
you/PRP
delay/VBP
,/,
a/DT
savings/NN
institution/NN
's/POS
health/NN
--/:
and/CC
the/DT
federal/JJ
budget/NN
deficit/NN
--/:
grows/VBZ
worse/JJR
./.
Think/VB
about/IN
the/DT
good/NN
you/PRP
can/MD
do/VB
for/IN
just/RB
$/$
15,000/CD
a/DT
month/NN
,/,
about/RB
the/DT
cost/NN
of/IN
a/DT
mid-size/JJ
Chevrolet/NNP
or/CC
two/CD
semesters/NNS
at/IN
a/DT
state/NN
university/NN
./.
Then/RB
send/VB
your/PRP$
support/NN
to/TO
a/DT
savings/NN
institution/NN
that/WDT
has/VBZ
taken/VBN
a/DT
bad/JJ
rap/NN
in/IN
the/DT
press/NN
and/CC
on/IN
its/PRP$
bottom/JJ
line/NN
./.
Every/DT
$/$
15,000/CD
you/PRP
send/VBP
will/MD
go/VB
a/DT
long/JJ
way/NN
to/TO
boost/VB
sagging/VBG
net/JJ
worth/NN
and/CC
employee/NN
morale/NN
--/:
and/CC
keep/VB
your/PRP$
Foster/NNP
Savings/NNP
Institution/NNP
off/IN
the/DT
federal/JJ
budget/NN
deficit/NN
!/.
Mr./NNP
Baris/NNP
is/VBZ
a/DT
lawyer/NN
in/IN
New/NNP
York/NNP
./.
The/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
said/VBD
it/PRP
plans/VBZ
to/TO
institute/VB
an/DT
additional/JJ
``/``
circuit/NN
breaker/NN
''/''
aimed/VBN
at/IN
stemming/VBG
market/NN
slides/NNS
./.
Separately/NNP
,/,
John/NNP
Phelan/NNP
told/VBD
a/DT
closed/VBN
House/NNP
subcommittee/NN
meeting/NN
in/IN
Washington/NNP
that/IN
he/PRP
would/MD
support/VB
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
halts/NNS
of/IN
program/NN
trading/NN
during/IN
market/NN
emergencies/NNS
./.
But/CC
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
chairman/NN
said/VBD
he/PRP
does/VBZ
n't/RB
support/VB
reinstating/VBG
a/DT
``/``
collar/NN
''/''
on/IN
program/NN
trading/NN
,/,
arguing/VBG
that/IN
firms/NNS
could/MD
get/VB
around/IN
such/JJ
a/DT
limit/NN
./.
The/DT
Chicago/NNP
Merc/NNP
said/VBD
a/DT
new/JJ
one-hour/JJ
price/NN
limit/NN
would/MD
take/VB
effect/NN
in/IN
its/PRP$
Standard/NNP
&/CC
Poor/NNP
's/POS
500/CD
stock-index/NN
futures/NNS
pit/NN
once/RB
S&P/NNP
500/CD
futures/NNS
fell/VBD
20/CD
index/NN
points/NNS
--/:
the/DT
equivalent/NN
of/IN
about/RB
a/DT
150-point/JJ
drop/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
./.
If/IN
the/DT
20-point/JJ
limit/NN
is/VBZ
triggered/VBN
after/IN
1:30/CD
p.m/RB
./.
Chicago/NNP
time/NN
,/,
it/PRP
would/MD
remain/VB
in/IN
effect/NN
until/IN
the/DT
normal/JJ
close/NN
of/IN
trading/VBG
at/IN
3:15/CD
p.m/RB
./.
With/IN
the/DT
limit/NN
in/IN
effect/NN
,/,
members/NNS
would/MD
be/VB
able/JJ
to/TO
execute/VB
trades/NNS
at/IN
the/DT
limit/NN
price/NN
or/CC
at/IN
higher/JJR
prices/NNS
,/,
but/CC
not/RB
below/IN
it/PRP
./.
The/DT
exchange/NN
said/VBD
it/PRP
decided/VBD
a/DT
new/JJ
circuit/NN
breaker/NN
was/VBD
needed/VBN
following/VBG
a/DT
review/NN
of/IN
the/DT
tumultuous/JJ
trading/VBG
in/IN
stocks/NNS
and/CC
stock-index/JJ
futures/NNS
on/IN
Friday/NNP
Oct./NNP
13/CD
,/,
when/WRB
the/DT
Dow/NNP
Jones/NNP
industrials/NNS
plunged/VBD
190/CD
points/NNS
and/CC
stock-index/JJ
futures/NNS
prices/NNS
skidded/VBD
as/RB
well/RB
./.
Late/RB
that/DT
afternoon/NN
the/DT
S&P/NNP
500/CD
stock-index/JJ
futures/NNS
contract/NN
fell/VBD
a/DT
total/NN
of/IN
30/CD
index/NN
points/NNS
,/,
hitting/VBG
a/DT
Merc/NNP
circuit/NN
breaker/NN
limit/NN
that/WDT
remained/VBD
in/IN
effect/NN
for/IN
the/DT
rest/NN
of/IN
the/DT
trading/NN
session/NN
./.
The/DT
Merc/NNP
said/VBD
that/IN
its/PRP$
existing/VBG
30-minute/JJ
,/,
12-point/JJ
limit/NN
on/IN
S&P/NNP
500/CD
stock-index/JJ
futures/NNS
trading/NN
(/(
equal/JJ
to/TO
about/RB
100/CD
points/NNS
on/IN
the/DT
Dow/NNP
Jones/NNP
industrials/NNS
)/)
,/,
which/WDT
was/VBD
triggered/VBN
Oct./NNP
13/CD
,/,
will/MD
remain/VB
in/IN
effect/NN
./.
Leo/NNP
Melamed/NNP
,/,
Merc/NNP
executive/NN
committee/NN
chairman/NN
,/,
said/VBD
that/IN
the/DT
12-point/JJ
limit/NN
appeared/VBD
to/TO
lessen/VB
the/DT
selling/NN
panic/NN
Oct./NNP
13/CD
./.
But/CC
when/WRB
the/DT
contract/NN
reopened/VBD
,/,
the/DT
subsequent/JJ
flood/NN
of/IN
sell/NN
orders/NNS
that/WDT
quickly/RB
knocked/VBD
the/DT
contract/NN
down/RP
to/TO
the/DT
30-point/JJ
limit/NN
indicated/VBD
that/IN
the/DT
intermediate/JJ
limit/NN
of/IN
20/CD
points/NNS
was/VBD
needed/VBN
to/TO
help/VB
keep/VB
stock/NN
and/CC
stock-index/JJ
futures/NNS
prices/NNS
synchronized/VBN
./.
Several/JJ
traders/NNS
maintained/VBD
that/IN
the/DT
Merc/NNP
's/POS
12-point/JJ
circuit-breaker/NN
aggravated/VBD
the/DT
market/NN
slide/NN
Oct./NNP
13/CD
by/IN
directing/VBG
additional/JJ
selling/VBG
pressure/NN
to/TO
the/DT
floor/NN
of/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
All/DT
of/IN
the/DT
changes/NNS
require/VBP
regulatory/JJ
approval/NN
,/,
which/WDT
is/VBZ
expected/VBN
shortly/RB
./.
The/DT
exchange/NN
also/RB
said/VBD
that/IN
the/DT
30-point/JJ
circuit/NN
breaker/NN
,/,
which/WDT
currently/RB
provides/VBZ
only/RB
a/DT
one-hour/JJ
respite/NN
during/IN
market/NN
sell-offs/NNS
,/,
will/MD
become/VB
the/DT
maximum/NN
one-day/JJ
limit/NN
for/IN
the/DT
S&P/NNP
500/CD
stock-index/JJ
futures/NNS
contract/NN
;/:
the/DT
one-day/JJ
limit/NN
now/RB
is/VBZ
50/CD
index/NN
points/NNS
./.
A/DT
final/JJ
modification/NN
was/VBD
made/VBN
to/TO
the/DT
five-point/JJ
opening/VBG
limit/NN
for/IN
the/DT
contract/NN
./.
The/DT
Merc/NNP
said/VBD
that/DT
five-point/JJ
limit/NN
will/MD
remain/VB
in/IN
effect/NN
for/IN
the/DT
first/JJ
10/CD
minutes/NNS
of/IN
trading/NN
./.
The/DT
limit/NN
lapses/VBZ
under/IN
current/JJ
exchange/NN
rules/NNS
if/IN
contracts/NNS
trade/VBP
above/IN
the/DT
limit/NN
price/NN
during/IN
the/DT
opening/VBG
10/CD
minutes/NNS
of/IN
trading/NN
./.
In/IN
Washington/NNP
,/,
House/NNP
aides/NNS
said/VBD
Mr./NNP
Phelan/NNP
told/VBD
congressmen/NNS
that/IN
the/DT
collar/NN
,/,
which/WDT
banned/VBD
program/NN
trades/NNS
through/IN
the/DT
Big/NNP
Board/NNP
's/POS
computer/NN
when/WRB
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
moved/VBD
50/CD
points/NNS
,/,
did/VBD
n't/RB
work/VB
well/RB
./.
He/PRP
said/VBD
that/IN
firms/NNS
could/MD
get/VB
around/IN
the/DT
collar/NN
by/IN
executing/VBG
trades/NNS
manually/RB
./.
In/IN
a/DT
post-hearing/JJ
news/NN
conference/NN
,/,
Mr./NNP
Phelan/NNP
,/,
who/WP
has/VBZ
publicly/RB
expressed/VBN
concern/NN
about/IN
market/NN
volatility/NN
,/,
said/VBD
he/PRP
told/VBD
the/DT
House/NNP
finance/NN
and/CC
telecommunications/NNS
subcommittee/NN
that/IN
he/PRP
would/MD
support/VB
the/DT
program-trading/JJ
halt/NN
proposal/NN
``/``
providing/VBG
the/DT
SEC/NNP
would/MD
be/VB
comfortable/JJ
with/IN
the/DT
language/NN
''/''
in/IN
a/DT
bill/NN
./.
The/DT
program-trading/JJ
issue/NN
is/VBZ
heating/VBG
up/RP
on/IN
Capitol/NNP
Hill/NNP
as/IN
it/PRP
is/VBZ
on/IN
Wall/NNP
Street/NNP
,/,
and/CC
several/JJ
legislators/NNS
want/VB
to/TO
grant/VB
the/DT
SEC/NNP
the/DT
power/NN
to/TO
shut/VB
off/RP
the/DT
programs/NNS
when/WRB
trading/VBG
becomes/VBZ
too/RB
volatile/JJ
./.
SEC/NNP
Chairman/NNP
Richard/NNP
Breeden/NNP
has/VBZ
said/VBD
he/PRP
would/MD
be/VB
willing/JJ
to/TO
consider/VB
circuit/NN
breakers/NNS
that/WDT
have/VBP
preset/JJ
trigger/NN
points/NNS
,/,
but/CC
he/PRP
does/VBZ
n't/RB
want/VB
discretionary/JJ
power/NN
to/TO
stop/VB
programs/NNS
./.
A/DT
House/NNP
aide/NN
suggested/VBD
that/IN
Mr./NNP
Phelan/NNP
was/VBD
so/RB
``/``
vague/JJ
and/CC
mushy/JJ
''/''
that/IN
it/PRP
was/VBD
the/DT
kind/NN
of/IN
meeting/NN
where/WRB
people/NNS
of/IN
all/DT
viewpoints/NNS
could/MD
``/``
come/VB
out/RB
feeling/VBG
good/JJ
./.
''/''
At/IN
one/CD
point/NN
,/,
Mr./NNP
Phelan/NNP
angered/VBD
the/DT
subcommittee/NN
's/POS
chairman/NN
,/,
Rep./NNP
Edward/NNP
Markey/NNP
D./NNP
,/,
Mass./NNP
what/WP
already/RB
had/VBD
been/VBN
reported/VBN
in/IN
the/DT
morning/NN
newspapers/NNS
./.
``/``
Markey/NNP
said/VBD
we/PRP
could/MD
have/VB
done/VBN
this/DT
in/IN
public/NN
''/''
because/IN
so/RB
little/RB
sensitive/JJ
information/NN
was/VBD
disclosed/VBN
,/,
the/DT
aide/NN
said/VBD
./.
Mr./NNP
Phelan/NNP
then/RB
responded/VBD
that/IN
he/PRP
would/MD
have/VB
been/VBN
happy/JJ
just/RB
writing/VBG
a/DT
report/NN
to/TO
the/DT
panel/NN
,/,
the/DT
aide/NN
added/VBD
./.
At/IN
another/DT
point/NN
during/IN
the/DT
hearing/NN
,/,
Rep./NNP
Markey/NNP
asked/VBD
Mr./NNP
Phelan/NNP
what/WP
would/MD
be/VB
discussed/VBN
at/IN
a/DT
New/NNP
York/NNP
exchange/NN
board/NN
meeting/NN
today/NN
./.
Mr./NNP
Phelan/NNP
said/VBD
the/DT
Big/NNP
Board/NNP
is/VBZ
likely/JJ
to/TO
study/VB
the/DT
program-trading/JJ
issue/NN
./.
That/DT
response/NN
annoyed/VBD
Rep./NNP
Markey/NNP
,/,
House/NNP
aides/NNS
said/VBD
,/,
and/CC
the/DT
congressman/NN
snapped/VBD
back/RB
that/IN
there/EX
had/VBD
been/VBN
enough/JJ
studies/NNS
of/IN
the/DT
issue/NN
and/CC
that/IN
it/PRP
was/VBD
time/NN
for/IN
action/NN
on/IN
the/DT
matter/NN
./.
Fifteen/CD
of/IN
the/DT
26/CD
subcommittee/NN
members/NNS
attended/VBD
the/DT
hearing/NN
,/,
most/RBS
notably/RB
Rep./NNP
John/NNP
Dingell/NNP
D./NNP
,/,
Mich./NNP
the/DT
full/JJ
House/NNP
Energy/NNP
and/CC
Commerce/NNP
Committee/NNP
chairman/NN
,/,
who/WP
has/VBZ
been/VBN
willing/JJ
to/TO
let/VB
Mr./NNP
Markey/NNP
carry/VB
the/DT
legislation/NN
in/IN
recent/JJ
months/NNS
./.
Mr./NNP
Dingell/NNP
expressed/VBD
concern/NN
,/,
sources/NNS
said/VBD
,/,
about/IN
jurisdictional/JJ
problems/NNS
in/IN
regulating/VBG
program/NN
trading/NN
,/,
which/WDT
uses/VBZ
futures/NNS
to/TO
offset/VB
stock/NN
trades/NNS
./.
The/DT
futures/NNS
industry/NN
is/VBZ
regulated/VBN
by/IN
the/DT
Commodity/NNP
Futures/NNP
Trading/NNP
Commission/NNP
,/,
which/WDT
reports/VBZ
to/TO
the/DT
Agriculture/NNP
committees/NNS
in/IN
both/DT
houses/NNS
./.
The/DT
art/NN
of/IN
change-ringing/NN
is/VBZ
peculiar/JJ
to/TO
the/DT
English/NNS
,/,
and/CC
,/,
like/IN
most/JJS
English/JJ
peculiarities/NNS
,/,
unintelligible/JJ
to/TO
the/DT
rest/NN
of/IN
the/DT
world/NN
./.
--/:
Dorothy/NNP
L./NNP
Sayers/NNP
,/,
``/``
The/DT
Nine/CD
Tailors/NNP
''/''
ASLACTON/NNP
,/,
England/NNP
--/:
Of/IN
all/DT
scenes/NNS
that/WDT
evoke/VBP
rural/JJ
England/NNP
,/,
this/DT
is/VBZ
one/CD
of/IN
the/DT
loveliest/JJS
:/:
An/DT
ancient/JJ
stone/NN
church/NN
stands/VBZ
amid/IN
the/DT
fields/NNS
,/,
the/DT
sound/NN
of/IN
bells/NNS
cascading/VBG
from/IN
its/PRP$
tower/NN
,/,
calling/VBG
the/DT
faithful/NN
to/TO
evensong/NN
./.
The/DT
parishioners/NNS
of/IN
St./NNP
Michael/NNP
and/CC
All/DT
Angels/NNPS
stop/VBP
to/TO
chat/VB
at/IN
the/DT
church/NN
door/NN
,/,
as/IN
members/NNS
here/RB
always/RB
have/VBP
./.
In/IN
the/DT
tower/NN
,/,
five/CD
men/NNS
and/CC
women/NNS
pull/VBP
rhythmically/RB
on/IN
ropes/NNS
attached/VBN
to/TO
the/DT
same/JJ
five/CD
bells/NNS
that/WDT
first/RB
sounded/VBD
here/RB
in/IN
1614/CD
./.
But/CC
there/EX
is/VBZ
also/RB
a/DT
discordant/JJ
,/,
modern/JJ
note/NN
in/IN
Aslacton/NNP
,/,
though/IN
it/PRP
ca/MD
n't/RB
be/VB
heard/VBN
by/IN
the/DT
church-goers/NNS
enjoying/VBG
the/DT
peal/NN
of/IN
bells/NNS
this/DT
cool/JJ
autumn/NN
evening/NN
./.
Like/IN
most/JJS
of/IN
the/DT
other/JJ
6,000/CD
churches/NNS
in/IN
Britain/NNP
with/IN
sets/NNS
of/IN
bells/NNS
,/,
St./NNP
Michael/NNP
once/RB
had/VBD
its/PRP$
own/JJ
``/``
band/NN
''/''
of/IN
ringers/NNS
,/,
who/WP
would/MD
herald/VB
every/DT
Sunday/NNP
morning/NN
and/CC
evening/NN
service/NN
./.
Now/RB
,/,
only/RB
one/CD
local/JJ
ringer/NN
remains/VBZ
:/:
64-year-old/JJ
Derek/NNP
Hammond/NNP
./.
The/DT
others/NNS
here/RB
today/NN
live/VBP
elsewhere/RB
./.
They/PRP
belong/VBP
to/TO
a/DT
group/NN
of/IN
15/CD
ringers/NNS
--/:
including/VBG
two/CD
octogenarians/NNS
and/CC
four/CD
youngsters/NNS
in/IN
training/NN
--/:
who/WP
drive/VBP
every/DT
Sunday/NNP
from/IN
church/NN
to/TO
church/NN
in/IN
a/DT
sometimes-exhausting/JJ
effort/NN
to/TO
keep/VB
the/DT
bells/NNS
sounding/VBG
in/IN
the/DT
many/JJ
belfries/NNS
of/IN
East/NNP
Anglia/NNP
./.
``/``
To/TO
ring/VB
for/IN
even/RB
one/CD
service/NN
at/IN
this/DT
tower/NN
,/,
we/PRP
have/VBP
to/TO
scrape/VB
,/,
''/''
says/VBZ
Mr./NNP
Hammond/NNP
,/,
a/DT
retired/VBN
water-authority/NN
worker/NN
./.
``/``
We/PRP
've/VBP
tried/VBD
to/TO
train/VB
the/DT
youngsters/NNS
,/,
but/CC
they/PRP
have/VBP
their/PRP$
discos/NNS
and/CC
their/PRP$
dances/NNS
,/,
and/CC
they/PRP
just/RB
drift/VBP
away/RB
./.
''/''
Mr./NNP
Hammond/NNP
worries/VBZ
that/IN
old/JJ
age/NN
and/CC
the/DT
flightiness/NN
of/IN
youth/NN
will/MD
diminish/VB
the/DT
ranks/NNS
of/IN
the/DT
East/JJ
Anglian/JJ
group/NN
that/WDT
keeps/VBZ
the/DT
Aslacton/NNP
bells/NNS
pealing/VBG
./.
History/NN
,/,
after/IN
all/DT
,/,
is/VBZ
not/RB
on/IN
his/PRP$
side/NN
./.
According/VBG
to/TO
a/DT
nationwide/JJ
survey/NN
taken/VBN
a/DT
year/NN
ago/RB
,/,
nearly/RB
a/DT
third/JJ
of/IN
England/NNP
's/POS
church/NN
bells/NNS
are/VBP
no/RB
longer/RBR
rung/VBN
on/IN
Sundays/NNS
because/IN
there/EX
is/VBZ
no/DT
one/CD
to/TO
ring/VB
them/PRP
./.
It/PRP
is/VBZ
easy/JJ
to/TO
see/VB
why/WRB
the/DT
ancient/JJ
art/NN
is/VBZ
on/IN
the/DT
ropes/NNS
./.
The/DT
less/RBR
complicated/JJ
version/NN
of/IN
playing/VBG
tunes/NNS
on/IN
bells/NNS
,/,
as/IN
do/VB
the/DT
carillons/NNS
of/IN
continental/JJ
Europe/NNP
,/,
is/VBZ
considered/VBN
by/IN
the/DT
English/NNP
to/TO
be/VB
childish/JJ
,/,
fit/JJ
only/RB
for/IN
foreigners/NNS
./.
Change-ringing/NN
,/,
a/DT
mind-boggling/JJ
exercise/NN
the/DT
English/NNP
invented/VBD
380/CD
years/NNS
ago/RB
,/,
requires/VBZ
physical/JJ
dexterity/NN
--/:
some/DT
bells/NNS
weigh/VBP
more/JJR
than/IN
a/DT
ton/NN
--/:
combined/VBN
with/IN
intense/JJ
mental/JJ
concentration/NN
./.
Proper/JJ
English/JJ
bells/NNS
are/VBP
started/VBN
off/RP
in/IN
``/``
rounds/NNS
,/,
''/''
from/IN
the/DT
highest-pitched/JJ
bell/NN
to/TO
the/DT
lowest/JJS
--/:
a/DT
simple/JJ
descending/VBG
scale/NN
using/VBG
,/,
in/IN
larger/JJR
churches/NNS
,/,
as/RB
many/JJ
as/IN
12/CD
bells/NNS
./.
Then/RB
,/,
at/IN
a/DT
signal/NN
,/,
the/DT
ringers/NNS
begin/VBP
varying/VBG
the/DT
order/NN
in/IN
which/WDT
the/DT
bells/NNS
sound/VBP
without/IN
altering/VBG
the/DT
steady/JJ
rhythm/NN
of/IN
the/DT
striking/JJ
./.
Each/DT
variation/NN
,/,
or/CC
change/NN
,/,
can/MD
occur/VB
only/RB
once/RB
,/,
the/DT
rules/NNS
state/VBP
./.
Ringers/NNS
memorize/VBP
patterns/NNS
of/IN
changes/NNS
,/,
known/VBN
as/IN
``/``
methods/NNS
,/,
''/''
which/WDT
have/VBP
odd-sounding/JJ
names/NNS
like/IN
Kent/NNP
Treble/NNP
Bob/NNP
Major/NNP
or/CC
Grandsire/NNP
Caters/NNP
./.
A/DT
series/NN
of/IN
5,000/CD
or/CC
so/RB
changes/NNS
is/VBZ
a/DT
``/``
peal/NN
''/''
and/CC
takes/VBZ
about/RB
three/CD
hours/NNS
./.
A/DT
look/NN
at/IN
a/DT
Thursday/NNP
night/NN
practice/NN
at/IN
St./NNP
Mary/NNP
Abbot/NNP
church/NN
in/IN
the/DT
Kensington/NNP
district/NN
of/IN
London/NNP
gives/VBZ
an/DT
idea/NN
of/IN
the/DT
work/NN
involved/VBN
./.
Ten/CD
shirt-sleeved/JJ
ringers/NNS
stand/VBP
in/IN
a/DT
circle/NN
,/,
one/CD
foot/NN
ahead/RB
of/IN
the/DT
other/JJ
in/IN
a/DT
prize-fighter/NN
's/POS
stance/NN
,/,
each/DT
pulling/VBG
a/DT
rope/NN
that/WDT
disappears/VBZ
through/IN
a/DT
small/JJ
hole/NN
in/IN
the/DT
high/JJ
ceiling/NN
of/IN
the/DT
ringing/NN
chamber/NN
./.
No/DT
one/PRP
speaks/VBZ
,/,
and/CC
the/DT
snaking/VBG
of/IN
the/DT
ropes/NNS
seems/VBZ
to/TO
make/VB
as/IN
much/JJ
sound/NN
as/IN
the/DT
bells/NNS
themselves/PRP
,/,
muffled/VBN
by/IN
the/DT
ceiling/NN
./.
Totally/RB
absorbed/VBN
,/,
the/DT
ringers/NNS
stare/VBP
straight/RB
ahead/RB
,/,
using/VBG
peripheral/JJ
vision/NN
they/PRP
call/VBP
it/PRP
``/``
rope-sight/NN
''/''
)/)
to/TO
watch/VB
the/DT
other/JJ
ropes/NNS
and/CC
thus/RB
time/VB
their/PRP$
pulls/NNS
./.
Far/RB
above/RB
in/IN
the/DT
belfry/NN
,/,
the/DT
huge/JJ
bronze/NN
bells/NNS
,/,
mounted/VBN
on/IN
wheels/NNS
,/,
swing/VBP
madly/RB
through/IN
a/DT
full/JJ
360/CD
degrees/NNS
,/,
starting/VBG
and/CC
ending/VBG
,/,
surprisingly/RB
,/,
in/IN
the/DT
inverted/JJ
,/,
or/CC
mouth-up/JJ
position/NN
./.
Skilled/JJ
ringers/NNS
use/VBP
their/PRP$
wrists/NNS
to/TO
advance/VB
or/CC
retard/VB
the/DT
next/JJ
swing/NN
,/,
so/RB
that/IN
one/CD
bell/NN
can/MD
swap/VB
places/NNS
with/IN
another/DT
in/IN
the/DT
following/JJ
change/NN
./.
In/IN
a/DT
well-known/JJ
detective-story/NN
involving/VBG
church/NN
bells/NNS
,/,
English/JJ
novelist/NN
Dorothy/NNP
L./NNP
Sayers/NNP
described/VBD
ringing/VBG
as/IN
a/DT
``/``
passion/NN
that/DT
its/PRP$
satisfaction/NN
in/IN
mathematical/JJ
completeness/NN
and/CC
mechanical/JJ
perfection/NN
./.
''/''
Ringers/NNS
,/,
she/PRP
added/VBD
,/,
are/VBP
``/``
filled/VBN
with/IN
the/DT
solemn/JJ
intoxication/NN
that/WDT
comes/VBZ
of/IN
intricate/JJ
ritual/NN
faultlessly/RB
performed/VBN
./.
''/''
``/``
Ringing/NN
does/VBZ
become/VB
a/DT
bit/NN
of/IN
an/DT
obsession/NN
,/,
''/''
admits/VBZ
Stephanie/NNP
Pattenden/NNP
,/,
master/NN
of/IN
the/DT
band/NN
at/IN
St./NNP
Mary/NNP
Abbot/NNP
and/CC
one/CD
of/IN
England/NNP
's/POS
best/JJS
female/NN
ringers/NNS
./.
It/PRP
is/VBZ
a/DT
passion/NN
that/WDT
usually/RB
stays/VBZ
in/IN
the/DT
tower/NN
,/,
however/RB
./.
More/RBR
often/RB
than/IN
not/RB
,/,
ringers/NNS
think/VBP
of/IN
the/DT
church/NN
as/IN
something/NN
stuck/VBD
on/IN
the/DT
bottom/NN
of/IN
the/DT
belfry/NN
./.
When/WRB
their/PRP$
changes/NNS
are/VBP
completed/VBN
,/,
and/CC
after/IN
they/PRP
have/VBP
worked/VBN
up/RP
a/DT
sweat/NN
,/,
ringers/NNS
often/RB
skip/VBP
off/RP
to/TO
the/DT
local/JJ
pub/NN
,/,
leaving/VBG
worship/NN
for/IN
others/NNS
below/RB
./.
This/DT
does/VBZ
not/RB
sit/VB
well/RB
with/IN
some/DT
clerics/NNS
./.
With/IN
membership/NN
of/IN
the/DT
Church/NNP
of/IN
England/NNP
steadily/RB
dwindling/VBG
,/,
strong-willed/JJ
vicars/NNS
are/VBP
pressing/VBG
equally/RB
strong-willed/JJ
and/CC
often/RB
non-religious/JJ
ringers/NNS
to/TO
attend/VB
services/NNS
./.
Two/CD
years/NNS
ago/RB
,/,
the/DT
Rev./NNP
Jeremy/NNP
Hummerstone/NNP
,/,
vicar/NN
of/IN
Great/NNP
Torrington/NNP
,/,
Devon/NNP
,/,
got/VBD
so/RB
fed/VBN
up/RP
with/IN
ringers/NNS
who/WP
did/VBD
n't/RB
attend/VB
service/NN
he/PRP
sacked/VBD
the/DT
entire/JJ
band/NN
;/:
the/DT
ringers/NNS
promptly/RB
set/VBN
up/RP
a/DT
picket/NN
line/NN
in/IN
protest/NN
./.
``/``
They/PRP
were/VBD
a/DT
self-perpetuating/JJ
club/NN
that/WDT
treated/VBD
the/DT
tower/NN
as/IN
sort/NN
of/IN
a/DT
separate/JJ
premises/NN
,/,
''/''
the/DT
Vicar/NNP
Hummerstone/NNP
says/VBZ
./.
An/DT
entirely/RB
new/JJ
band/NN
rings/VBZ
today/NN
at/IN
Great/JJ
Torrington/NNP
,/,
several/JJ
of/IN
whom/WP
are/VBP
members/NNS
of/IN
the/DT
congregation/NN
./.
But/CC
there/EX
still/RB
are/VBP
n't/RB
enough/JJ
ringers/NNS
to/TO
ring/VB
more/JJR
than/IN
six/CD
of/IN
the/DT
eight/CD
bells/NNS
./.
At/IN
St./NNP
Mary/NNP
's/POS
Church/NNP
in/IN
Ilminster/NNP
,/,
Somerset/NNP
,/,
the/DT
bells/NNS
have/VBP
fallen/VBN
silent/JJ
following/VBG
a/DT
dust-up/NN
over/IN
church/NN
attendance/NN
./.
The/DT
vicar/NN
,/,
W.D./NNP
Jones/NNP
,/,
refuses/VBZ
to/TO
talk/VB
about/IN
it/PRP
,/,
saying/VBG
it/PRP
would/MD
``/``
reopen/VB
the/DT
wound/NN
./.
''/''
But/CC
C.J.B./NNP
Marshall/NNP
,/,
vicar/NN
of/IN
a/DT
nearby/JJ
church/NN
,/,
feels/VBZ
the/DT
fault/NN
is/VBZ
in/IN
the/DT
stairs/NNS
from/IN
the/DT
bell/NN
tower/NN
that/WDT
are/VBP
located/VBN
next/JJ
to/TO
the/DT
altar/NN
./.
``/``
So/RB
crunch/NN
,/,
crunch/NN
,/,
crunch/NN
,/,
bang/NN
,/,
bang/NN
,/,
bang/NN
--/:
here/RB
come/VBP
the/DT
ringers/NNS
from/IN
above/RB
,/,
making/VBG
a/DT
very/RB
obvious/JJ
exit/NN
while/IN
the/DT
congregation/NN
is/VBZ
at/IN
prayer/NN
,/,
''/''
he/PRP
says/VBZ
./.
Vicar/NNP
Marshall/NNP
admits/VBZ
to/TO
mixed/VBN
feelings/NNS
about/IN
this/DT
issue/NN
,/,
since/IN
he/PRP
is/VBZ
both/DT
a/DT
vicar/NN
and/CC
an/DT
active/JJ
bell-ringer/NN
himself/PRP
./.
``/``
The/DT
sound/NN
of/IN
bells/NNS
is/VBZ
a/DT
net/NN
to/TO
draw/VB
people/NNS
into/IN
the/DT
church/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
I/PRP
live/VBP
in/IN
hopes/NNS
that/IN
the/DT
ringers/NNS
themselves/PRP
will/MD
be/VB
drawn/VBN
into/IN
that/DT
fuller/JJR
life/NN
./.
''/''
The/DT
Central/NNP
Council/NNP
of/IN
Church/NNP
Bell/NNP
Ringers/NNP
,/,
a/DT
sort/NN
of/IN
parliament/NN
of/IN
ringing/NN
groups/NNS
,/,
aims/VBZ
to/TO
improve/VB
relations/NNS
with/IN
vicars/NNS
,/,
says/VBZ
John/NNP
C./NNP
Baldwin/NNP
,/,
president/NN
./.
It/PRP
hopes/VBZ
to/TO
speak/VB
to/TO
students/NNS
at/IN
theological/JJ
colleges/NNS
about/IN
the/DT
joys/NNS
of/IN
bell/NN
ringing/NN
and/CC
will/MD
shortly/RB
publish/VB
a/DT
booklet/NN
for/IN
every/DT
vicar/NN
in/IN
the/DT
country/NN
entitled/VBD
,/,
``/``
The/DT
Bells/NNP
in/IN
Your/PRP$
Care/NNP
./.
''/''
Says/VBZ
Mr./NNP
Baldwin/NNP
,/,
``/``
We/PRP
recognize/VBP
that/IN
we/PRP
may/MD
no/RB
longer/RBR
have/VBP
as/RB
high/JJ
a/DT
priority/NN
in/IN
church/NN
life/NN
and/CC
experience/NN
./.
''/''
Mr./NNP
Baldwin/NNP
is/VBZ
also/RB
attacking/VBG
the/DT
greater/JJR
problem/NN
:/:
lack/NN
of/IN
ringers/NNS
./.
One/CD
survey/NN
says/VBZ
that/IN
of/IN
the/DT
100,000/CD
trained/VBN
bellringers/NNS
in/IN
England/NNP
today/NN
,/,
only/RB
40,000/CD
of/IN
them/PRP
still/RB
ring/VBP
./.
Also/RB
,/,
ringers/NNS
do/VBP
n't/RB
always/RB
live/VB
where/WRB
the/DT
bells/NNS
need/VBP
to/TO
be/VB
rung/VBN
--/:
like/IN
in/IN
small/JJ
,/,
rural/JJ
parishes/NNS
and/CC
inner-city/NN
churches/NNS
./.
But/CC
the/DT
council/NN
's/POS
program/NN
to/TO
attract/VB
and/CC
train/VB
ringers/NNS
is/VBZ
only/RB
partly/RB
successful/JJ
,/,
says/VBZ
Mr./NNP
Baldwin/NNP
./.
``/``
Right/RB
now/RB
,/,
we/PRP
're/VBP
lucky/JJ
if/IN
after/IN
five/CD
years/NNS
we/PRP
keep/VBP
one/CD
new/JJ
ringer/NN
out/IN
of/IN
10/CD
,/,
''/''
he/PRP
adds/VBZ
./.
One/CD
bright/JJ
sign/NN
is/VBZ
that/IN
a/DT
growing/VBG
number/NN
of/IN
women/NNS
have/VBP
entered/VBN
the/DT
once/RB
male-dominated/JJ
field/NN
;/:
more/JJR
than/IN
a/DT
third/JJ
of/IN
the/DT
ringers/NNS
today/NN
are/VBP
women/NNS
./.
They/PRP
are/VBP
n't/RB
accepted/VBN
everywhere/RB
,/,
however/RB
./.
The/DT
oldest/JJS
bell-ringing/JJ
group/NN
in/IN
the/DT
country/NN
,/,
the/DT
Ancient/NNP
Society/NNP
of/IN
College/NNP
Youths/NNP
,/,
founded/VBN
in/IN
1637/CD
,/,
remains/VBZ
male-only/JJ
,/,
a/DT
fact/NN
that/WDT
's/VBZ
particularly/RB
galling/JJ
to/TO
women/NNS
because/IN
the/DT
group/NN
is/VBZ
the/DT
sole/JJ
source/NN
of/IN
ringers/NNS
for/IN
Britain/NNP
's/POS
most/JJS
prestigious/JJ
churches/NNS
,/,
St./NNP
Paul/NNP
's/POS
Cathedral/NNP
and/CC
Westminster/NNP
Abbey/NNP
./.
This/DT
being/VBG
Britain/NNP
,/,
no/DT
woman/NN
has/VBZ
filed/VBN
an/DT
equal-opportunity/NN
suit/NN
,/,
but/CC
the/DT
extent/NN
of/IN
the/DT
problem/NN
surfaced/VBD
this/DT
summer/NN
in/IN
a/DT
series/NN
of/IN
letters/NNS
to/TO
``/``
The/DT
Ringing/NNP
World/NNP
,/,
''/''
a/DT
weekly/JJ
newspaper/NN
for/IN
ringers/NNS
./.
One/CD
writer/NN
,/,
signing/VBG
his/PRP$
letter/NN
as/IN
``/``
Red-blooded/JJ
,/,
balanced/JJ
male/NN
,/,
''/''
remarked/VBN
on/IN
the/DT
``/``
frequency/NN
of/IN
women/NNS
fainting/VBG
in/IN
peals/NNS
,/,
''/''
and/CC
suggested/VBD
that/IN
they/PRP
``/``
settle/VB
back/RB
into/IN
their/PRP$
traditional/JJ
role/NN
of/IN
making/VBG
tea/NN
at/IN
meetings/NNS
./.
''/''
In/IN
the/DT
torrent/NN
of/IN
replies/NNS
that/IN
followed/VBD
,/,
one/CD
woman/NN
ringer/NN
from/IN
Solihull/NNP
observed/VBN
that/IN
``/``
the/DT
average/JJ
male/JJ
ringer/NN
leaves/VBZ
quite/RB
a/DT
lot/NN
to/TO
be/VB
desired/VBN
:/:
badly/RB
dressed/VBN
,/,
decorated/VBN
with/IN
acne/NN
and/CC
a/DT
large/JJ
beer-belly/NN
,/,
frequently/RB
unwashed/JJ
and/CC
unbearably/RB
flatulent/JJ
in/IN
peals/NNS
./.
''/''
Another/DT
women/NNS
wrote/VBD
from/IN
Sheffield/NNP
to/TO
say/VB
that/IN
in/IN
her/PRP$
60/CD
years/NNS
of/IN
ringing/VBG
,/,
``/``
I/PRP
have/VBP
never/RB
known/VBN
a/DT
lady/NN
to/TO
faint/VB
in/IN
the/DT
belfry/NN
./.
I/PRP
have/VBP
seen/VBN
one/CD
or/CC
two/CD
men/NNS
die/VB
,/,
bless/VB
them/PRP
./.
''/''
Investors/NNS
unsettled/VBN
by/IN
the/DT
stock/NN
market/NN
's/POS
gyrations/NNS
can/MD
take/VB
some/DT
comfort/NN
in/IN
the/DT
predictable/JJ
arrival/NN
of/IN
quarterly/JJ
dividend/NN
checks/NNS
./.
That/DT
has/VBZ
been/VBN
particularly/RB
true/JJ
this/DT
year/NN
with/IN
many/JJ
companies/NNS
raising/VBG
their/PRP$
payouts/NNS
more/JJR
than/IN
10/CD
%/NN
./.
But/CC
do/VBP
n't/RB
breathe/VB
too/RB
easy/JJ
:/:
Those/DT
dividend/NN
increases/NNS
may/MD
signal/VB
trouble/NN
ahead/RB
for/IN
stock/NN
prices/NNS
,/,
some/DT
analysts/NNS
warn/VBP
./.
In/IN
the/DT
past/NN
,/,
they/PRP
say/VBP
,/,
the/DT
strongest/JJS
dividend/NN
growth/NN
has/VBZ
often/RB
come/VBN
at/IN
times/NNS
when/WRB
the/DT
stock-market/NN
party/NN
was/VBD
almost/RB
over/JJ
./.
That/DT
can/MD
be/VB
a/DT
trap/NN
for/IN
unwary/JJ
investors/NNS
,/,
says/VBZ
Richard/NNP
Bernstein/NNP
,/,
senior/JJ
quantitative/JJ
analyst/NN
at/IN
Merrill/NNP
Lynch/NNP
&/CC
Co/NNP
./.
Strong/JJ
dividend/NN
growth/NN
,/,
he/PRP
says/VBZ
,/,
is/VBZ
``/``
the/DT
black/JJ
widow/NN
of/IN
valuation/NN
''/''
--/:
a/DT
reference/NN
to/TO
the/DT
female/JJ
spiders/NNS
that/WDT
attract/VBP
males/NNS
and/CC
then/RB
kill/VBP
them/PRP
after/IN
mating/VBG
./.
Stephen/NNP
Boesel/NNP
,/,
president/NN
of/IN
T./NNP
Rowe/NNP
Price/NNP
Growth/NNP
and/CC
Income/NNP
Fund/NNP
,/,
explains/VBZ
that/IN
companies/NNS
raise/VBP
their/PRP$
payouts/NNS
most/RBS
robustly/RB
only/RB
after/IN
the/DT
economy/NN
and/CC
corporate/JJ
profits/NNS
have/VBP
been/VBN
growing/VBG
for/IN
some/DT
time/NN
./.
``/``
Invariably/RB
,/,
those/DT
strong/JJ
periods/NNS
in/IN
the/DT
economy/NN
give/VBP
way/NN
to/TO
recessionary/JJ
environments/NNS
,/,
''/''
he/PRP
says/VBZ
./.
``/``
And/CC
recessionary/JJ
environments/NNS
are/VBP
n't/RB
hospitable/JJ
to/TO
the/DT
stock/NN
market/NN
./.
''/''
Indeed/RB
,/,
analysts/NNS
say/VBP
that/IN
payouts/NNS
have/VBP
sometimes/RB
risen/VBN
most/RBS
sharply/RB
when/WRB
prices/NNS
were/VBD
already/RB
on/IN
their/PRP$
way/NN
down/IN
from/IN
cyclical/JJ
peaks/NNS
./.
In/IN
1976/CD
,/,
for/IN
example/NN
,/,
dividends/NNS
on/IN
the/DT
stocks/NNS
in/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
500-stock/JJ
index/NN
soared/VBD
10/CD
%/NN
,/,
following/VBG
much/RB
slower/JJR
growth/NN
the/DT
year/NN
before/IN
./.
The/DT
S&P/NNP
index/NN
started/VBD
sliding/VBG
in/IN
price/NN
in/IN
September/NNP
1976/CD
,/,
and/CC
fell/VBD
12/CD
%/NN
in/IN
1977/CD
--/:
despite/IN
a/DT
15/CD
%/NN
expansion/NN
in/IN
dividends/NNS
that/DT
year/NN
./.
That/DT
pattern/NN
has/VBZ
n't/RB
always/RB
held/VBN
,/,
but/CC
recent/JJ
strong/JJ
growth/NN
in/IN
dividends/NNS
makes/VBZ
some/DT
market/NN
watchers/NNS
anxious/JJ
./.
Payouts/NNS
on/IN
the/DT
S&P/NNP
500/CD
stocks/NNS
rose/VBD
10/CD
%/NN
in/IN
1988/CD
,/,
according/VBG
to/TO
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NNP
,/,
and/CC
Wall/NNP
Street/NNP
estimates/NNS
for/IN
1989/CD
growth/NN
are/VBP
generally/RB
between/IN
9/CD
%/NN
and/CC
14/CD
%/NN
./.
Many/JJ
people/NNS
believe/VBP
the/DT
growth/NN
in/IN
dividends/NNS
will/MD
slow/VB
next/JJ
year/NN
,/,
although/IN
a/DT
minority/NN
see/VBP
double-digit/JJ
gains/NNS
continuing/VBG
./.
Meanwhile/RB
,/,
many/JJ
market/NN
watchers/NNS
say/VBP
recent/JJ
dividend/NN
trends/NNS
raise/VBP
another/DT
warning/NN
flag/NN
:/:
While/IN
dividends/NNS
have/VBP
risen/VBN
smartly/RB
,/,
their/PRP$
expansion/NN
has/VBZ
n't/RB
kept/VBD
pace/NN
with/IN
even/JJ
stronger/JJR
advances/NNS
in/IN
stock/NN
prices/NNS
./.
As/IN
a/DT
result/NN
,/,
the/DT
market/NN
's/POS
dividend/NN
yield/NN
--/:
dividends/NNS
as/IN
a/DT
percentage/NN
of/IN
price/NN
--/:
has/VBP
slid/VBD
to/TO
a/DT
level/NN
that/WDT
is/VBZ
fairly/RB
low/JJ
and/CC
unenticing/JJ
by/IN
historical/JJ
standards/NNS
./.
Put/VBN
another/DT
way/NN
,/,
the/DT
decline/NN
in/IN
the/DT
yield/NN
suggests/VBZ
stocks/NNS
have/VBP
gotten/VBN
pretty/RB
rich/JJ
in/IN
price/NN
relative/JJ
to/TO
the/DT
dividends/NNS
they/PRP
pay/VBP
,/,
some/DT
market/NN
analysts/NNS
say/VBP
./.
They/PRP
are/VBP
keeping/VBG
a/DT
close/JJ
watch/NN
on/IN
the/DT
yield/NN
on/IN
the/DT
S&P/NNP
500/CD
./.
The/DT
figure/NN
is/VBZ
currently/RB
about/RB
3.3/CD
%/NN
,/,
up/IN
from/IN
3.2/CD
%/NN
before/IN
the/DT
recent/JJ
market/NN
slide/NN
./.
Some/DT
analysts/NNS
say/VBP
investors/NNS
should/MD
run/VB
for/IN
the/DT
exits/NNS
if/IN
a/DT
sustained/VBN
market/NN
rebound/NN
pushes/VBZ
the/DT
yield/NN
below/IN
3/CD
%/NN
./.
A/DT
drop/NN
below/IN
that/DT
3/CD
%/NN
benchmark/NN
``/``
has/VBZ
always/RB
been/VBN
a/DT
strong/JJ
warning/NN
sign/NN
that/IN
stocks/NNS
are/VBP
fully/RB
valued/VBN
,/,
''/''
says/VBZ
Mr./NNP
Boesel/NNP
of/IN
T./NNP
Rowe/NNP
Price/NNP
./.
In/IN
fact/NN
,/,
``/``
the/DT
market/NN
has/VBZ
always/RB
tanked/VBN
./.
Always/RB
./.
There/EX
's/VBZ
never/RB
been/VBN
an/DT
exception/NN
,/,
''/''
says/VBZ
Gerald/NNP
W./NNP
Perritt/NNP
,/,
a/DT
Chicago/NNP
investment/NN
adviser/NN
and/CC
money/NN
manager/NN
,/,
based/VBN
on/IN
a/DT
review/NN
of/IN
six/CD
decades/NNS
of/IN
stock-market/NN
data/NN
./.
The/DT
last/JJ
time/NN
the/DT
S&P/NNP
500/CD
yield/NN
dropped/VBD
below/IN
3/CD
%/NN
was/VBD
in/IN
the/DT
summer/NN
of/IN
1987/CD
./.
Stockholders/NNS
who/WP
took/VBD
the/DT
hint/NN
and/CC
sold/VBD
shares/NNS
escaped/VBD
the/DT
October/NNP
debacle/NN
./.
There/EX
have/VBP
been/VBN
only/RB
seven/CD
other/JJ
times/NNS
--/:
in/NN
1929/CD
,/,
1933/CD
,/,
1961/CD
,/,
1965/CD
,/,
1968/CD
,/,
1971/CD
and/CC
1972/CD
--/:
when/WRB
the/DT
yield/NN
on/IN
the/DT
S&P/NNP
500/CD
dropped/VBD
below/IN
3/CD
%/NN
for/IN
at/IN
least/JJS
two/CD
consecutive/JJ
months/NNS
,/,
Mr./NNP
Perritt/NNP
found/VBD
./.
And/CC
in/IN
each/DT
case/NN
,/,
he/PRP
says/VBZ
,/,
a/DT
sharp/JJ
drop/NN
in/IN
stock/NN
prices/NNS
began/VBD
within/IN
a/DT
year/NN
./.
Still/RB
,/,
some/DT
market/NN
analysts/NNS
say/VBP
the/DT
current/JJ
3.3/CD
%/NN
reading/NN
is/VBZ
n't/RB
as/RB
troublesome/JJ
as/IN
it/PRP
might/MD
have/VB
been/VBN
in/IN
years/NNS
past/NN
./.
``/``
It/PRP
's/VBZ
not/RB
a/DT
very/RB
meaningful/JJ
indicator/NN
currently/RB
because/IN
corporations/NNS
are/VBP
not/RB
behaving/VBG
in/IN
a/DT
traditional/JJ
manner/NN
,/,
''/''
says/VBZ
James/NNP
H./NNP
Coxon/NNP
,/,
head/NN
of/IN
stock/NN
investments/NNS
for/IN
Cigna/NNP
Corp./NNP
,/,
the/DT
Philadelphia-based/JJ
insurer/NN
./.
In/IN
particular/JJ
,/,
Mr./NNP
Coxon/NNP
says/VBZ
,/,
businesses/NNS
are/VBP
paying/VBG
out/RP
a/DT
smaller/JJR
percentage/NN
of/IN
their/PRP$
profits/NNS
and/CC
cash/NN
flow/NN
in/IN
the/DT
form/NN
of/IN
dividends/NNS
than/IN
they/PRP
have/VBP
historically/RB
./.
So/RB
,/,
while/IN
stock/NN
prices/NNS
may/MD
look/VB
fairly/RB
high/JJ
relative/JJ
to/TO
dividends/NNS
,/,
they/PRP
are/VBP
not/RB
excessive/JJ
relative/JJ
to/TO
the/DT
underlying/JJ
corporate/JJ
strength/NN
./.
Rather/RB
than/IN
increasing/VBG
dividends/NNS
,/,
some/DT
companies/NNS
have/VBP
used/VBN
cash/NN
to/TO
buy/VB
back/RB
some/DT
of/IN
their/PRP$
shares/NNS
,/,
notes/VBZ
Steven/NNP
G./NNP
Einhorn/NNP
,/,
co-chairman/NN
of/IN
the/DT
investment/NN
policy/NN
committee/NN
at/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
./.
He/PRP
factors/VBZ
that/DT
into/IN
the/DT
market/NN
yield/NN
to/TO
get/VB
an/DT
adjusted/VBN
yield/NN
of/IN
about/RB
3.6/CD
%/NN
./.
That/DT
is/VBZ
just/RB
a/DT
tad/NN
below/IN
the/DT
average/NN
of/IN
the/DT
past/JJ
40/CD
years/NNS
or/CC
so/RB
,/,
he/PRP
says/VBZ
./.
What/WP
will/MD
happen/VB
to/TO
dividend/NN
growth/NN
next/JJ
year/NN
?/.
Common/JJ
wisdom/NN
suggests/VBZ
a/DT
single-digit/JJ
rate/NN
of/IN
growth/NN
,/,
reflecting/VBG
a/DT
weakening/NN
in/IN
the/DT
economy/NN
and/CC
corporate/JJ
profits/NNS
./.
PaineWebber/NNP
Inc./NNP
,/,
for/IN
instance/NN
,/,
is/VBZ
forecasting/VBG
growth/NN
in/IN
S&P/NNP
500/CD
dividends/NNS
of/IN
just/RB
under/IN
5/CD
%/NN
in/IN
1990/CD
,/,
down/IN
from/IN
an/DT
estimated/VBN
11/CD
%/NN
this/DT
year/NN
./.
In/IN
other/JJ
years/NNS
in/IN
which/WDT
there/EX
have/VBP
been/VBN
moderate/JJ
economic/JJ
slowdowns/NNS
--/:
the/JJ
environment/NN
the/DT
firm/NN
expects/VBZ
in/IN
1990/CD
--/:
the/JJ
change/NN
in/IN
dividends/NNS
ranged/VBD
from/IN
a/DT
gain/NN
of/IN
4/CD
%/NN
to/TO
a/DT
decline/NN
of/IN
1/CD
%/NN
,/,
according/VBG
to/TO
PaineWebber/NNP
analyst/NN
Thomas/NNP
Doerflinger/NNP
./.
The/DT
minority/NN
argument/NN
,/,
meanwhile/RB
,/,
is/VBZ
that/IN
businesses/NNS
have/VBP
the/DT
financial/JJ
wherewithal/JJ
this/DT
time/NN
around/RP
to/TO
declare/VB
sharply/RB
higher/JJR
dividends/NNS
even/RB
if/IN
their/PRP$
earnings/NNS
weaken/VBP
./.
Dividend/NN
growth/NN
on/IN
the/DT
order/NN
of/IN
12/CD
%/NN
is/VBZ
expected/VBN
by/IN
both/DT
Mr./NNP
Coxon/NNP
of/IN
Cigna/NNP
and/CC
Mr./NNP
Einhorn/NNP
of/IN
Goldman/NNP
Sachs/NNP
./.
Those/DT
dividend/NN
bulls/NNS
argue/VBP
that/IN
corporations/NNS
are/VBP
in/IN
the/DT
unusual/JJ
position/NN
of/IN
having/VBG
plenty/NN
of/IN
cash/NN
left/VBD
over/RP
after/IN
paying/VBG
dividends/NNS
and/CC
making/VBG
capital/NN
expenditures/NNS
./.
One/CD
indicator/NN
investors/NNS
might/MD
want/VB
to/TO
watch/VB
is/VBZ
the/DT
monthly/JJ
tally/NN
from/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
of/IN
the/DT
number/NN
of/IN
public/JJ
companies/NNS
adjusting/VBG
their/PRP$
dividends/NNS
./.
A/DT
total/NN
of/IN
139/CD
companies/NNS
raised/VBD
dividends/NNS
in/IN
October/NNP
,/,
basically/RB
unchanged/JJ
from/IN
138/CD
a/DT
year/NN
ago/RB
,/,
S&P/NNP
said/VBD
Wednesday/NNP
./.
That/DT
followed/VBD
four/CD
straight/JJ
months/NNS
in/IN
which/WDT
the/DT
number/NN
of/IN
increases/NNS
trailed/VBD
the/DT
year-earlier/JJ
pace/NN
./.
While/IN
the/DT
S&P/NNP
tally/NN
does/VBZ
n't/RB
measure/VB
the/DT
magnitude/NN
of/IN
dividend/NN
changes/NNS
,/,
a/DT
further/JJ
slippage/NN
in/IN
the/DT
number/NN
of/IN
dividend/NN
increases/NNS
could/MD
be/VB
a/DT
harbinger/NN
of/IN
slower/JJR
dividend/NN
growth/NN
next/IN
year/NN
./.
In/IN
any/DT
case/NN
,/,
opinion/NN
is/VBZ
mixed/VBN
on/IN
how/WRB
much/JJ
of/IN
a/DT
boost/NN
the/DT
overall/JJ
stock/NN
market/NN
would/MD
get/VB
even/RB
if/IN
dividend/NN
growth/NN
continues/VBZ
at/IN
double-digit/JJ
levels/NNS
./.
Mr./NNP
Einhorn/NNP
of/IN
Goldman/NNP
Sachs/NNP
estimates/VBZ
the/DT
stock/NN
market/NN
will/MD
deliver/VB
a/DT
12/CD
%/NN
to/TO
15/CD
%/NN
total/NN
return/NN
from/IN
appreciation/NN
and/CC
dividends/NNS
over/IN
the/DT
next/JJ
12/CD
months/NNS
--/:
vs./IN
a/DT
``/``
cash/NN
rate/NN
of/IN
return/NN
''/''
of/IN
perhaps/RB
7/CD
%/NN
or/CC
8/CD
%/JJ
if/IN
dividend/NN
growth/NN
is/VBZ
weak/JJ
./.
But/CC
Mr./NNP
Boesel/NNP
of/IN
T./NNP
Rowe/NNP
Price/NNP
,/,
who/WP
also/RB
expects/VBZ
12/CD
%/NN
growth/NN
in/IN
dividends/NNS
next/IN
year/NN
,/,
does/VBZ
n't/RB
think/VB
it/PRP
will/MD
help/VB
the/DT
overall/JJ
market/NN
all/DT
that/DT
much/JJ
./.
``/``
Having/VBG
the/DT
dividend/NN
increases/NNS
is/VBZ
a/DT
supportive/JJ
element/NN
in/IN
the/DT
market/NN
outlook/NN
,/,
but/CC
I/PRP
do/VBP
n't/RB
think/VB
it/PRP
's/VBZ
a/DT
main/JJ
consideration/NN
,/,
''/''
he/PRP
says/VBZ
./.
With/IN
slower/JJR
economic/JJ
growth/NN
and/CC
flat/JJ
corporate/JJ
earnings/NNS
likely/JJ
next/IN
year/NN
,/,
``/``
I/PRP
would/MD
n't/RB
look/VB
for/IN
the/DT
market/NN
to/TO
have/VB
much/JJ
upside/RB
from/IN
current/JJ
levels/NNS
./.
''/''
Your/PRP$
Oct./NNP
13/CD
page-one/JJ
story/NN
on/IN
the/DT
renewed/VBN
plight/NN
of/IN
Western/NNP
Union/NNP
says/VBZ
that/IN
Western/NNP
Union/NNP
had/VBD
lost/VBN
its/PRP$
chance/NN
to/TO
be/VB
in/IN
the/DT
telephone/NN
business/NN
by/IN
turning/VBG
down/IN
Alexander/NNP
Graham/NNP
Bell/NNP
's/POS
offer/NN
to/TO
it/PRP
of/IN
his/PRP$
invention/NN
,/,
because/IN
it/PRP
supposedly/RB
felt/VBD
that/IN
voice/NN
communication/NN
would/MD
never/RB
replace/VB
the/DT
telegraph/NN
./.
Such/JJ
is/VBZ
hardly/RB
the/DT
case/NN
./.
Bell/NNP
's/POS
father-in-law/NN
,/,
Gardner/NNP
G./NNP
Hubbard/NNP
,/,
wealthy/JJ
and/CC
well-connected/JJ
,/,
obtained/VBD
financing/NN
to/TO
start/VB
the/DT
American/NNP
Bell/NNP
Telephone/NNP
Co./NNP
in/IN
Boston/NNP
,/,
which/WDT
even/RB
had/VBD
a/DT
subsidiary/NN
in/IN
New/NNP
York/NNP
called/VBN
the/DT
Telephone/NNP
Co./NNP
of/IN
New/NNP
York/NNP
./.
This/DT
is/VBZ
where/WRB
Bell/NNP
's/POS
patents/NNS
went/VBD
./.
Western/NNP
Union/NNP
indeed/RB
wanted/VBD
to/TO
get/VB
into/IN
the/DT
telephone/NN
business/NN
./.
It/PRP
acquired/VBD
Thomas/NNP
Edison/NNP
's/POS
microphone/NN
patent/NN
and/CC
then/RB
immediately/RB
sued/VBD
the/DT
Bell/NNP
Co./NNP
claiming/VBG
that/IN
the/DT
microphone/NN
invented/VBN
by/IN
my/PRP$
grandfather/NN
,/,
Emile/NNP
Berliner/NNP
,/,
which/WDT
had/VBD
been/VBN
sold/VBN
to/TO
Bell/NNP
for/IN
a/DT
princely/JJ
$/$
50,000/CD
,/,
infringed/VBN
upon/IN
Western/NNP
Union/NNP
's/POS
Edison/NNP
patent/NN
./.
When/WRB
Bell/NNP
established/VBD
that/IN
the/DT
Berliner/NNP
patent/NN
caveat/NN
was/VBD
registered/VBN
10/CD
days/NNS
before/IN
Edison/NNP
's/POS
application/NN
,/,
Western/NNP
Union/NNP
dropped/VBD
the/DT
lawsuit/NN
and/CC
agreed/VBD
never/RB
to/TO
enter/VB
the/DT
telephone/NN
business/NN
--/:
the/DT
basis/NN
for/IN
the/DT
company/NN
's/POS
current/JJ
plight/NN
./.
Oliver/NNP
Berliner/NNP
Beverly/NNP
Hills/NNP
,/,
Calif/NNP
./.
Troubled/NNP
NBI/NNP
Inc./NNP
said/VBD
it/PRP
fired/VBD
more/JJR
than/IN
half/PDT
its/PRP$
work/NN
force/NN
and/CC
is/VBZ
discontinuing/VBG
its/PRP$
hardware/NN
business/NN
to/TO
focus/VB
on/IN
its/PRP$
software/NN
and/CC
service/NN
operations/NNS
./.
The/DT
ailing/VBG
company/NN
,/,
which/WDT
has/VBZ
reported/VBN
net/JJ
losses/NNS
for/IN
16/CD
consecutive/JJ
quarters/NNS
,/,
said/VBD
it/PRP
wo/MD
n't/RB
manufacture/VB
network/NN
computer/NN
systems/NNS
any/RB
more/JJR
and/CC
will/MD
greatly/RB
reduce/VB
its/PRP$
costly/JJ
direct/JJ
sales/NNS
force/NN
./.
Altogether/RB
,/,
NBI/NNP
said/VBD
it/PRP
will/MD
eliminate/VB
266/CD
jobs/NNS
at/IN
its/PRP$
Boulder/NNP
headquarters/NN
,/,
176/CD
field/NN
sales/NNS
jobs/NNS
and/CC
50/CD
jobs/NNS
at/IN
its/PRP$
Canadian/JJ
and/CC
United/NNP
Kingdom/NNP
headquarters/NN
./.
The/DT
company/NN
's/POS
work/NN
force/NN
will/MD
fall/VB
to/TO
about/IN
400/CD
people/NNS
./.
Stephen/NNP
G./NNP
Jerritts/NNP
,/,
president/NN
and/CC
chief/NN
executive/NN
officer/NN
,/,
said/VBD
customers/NNS
were/VBD
n't/RB
willing/JJ
to/TO
commit/VB
to/TO
an/DT
expensive/JJ
NBI/NNP
hardware/NN
systems/NNS
because/IN
of/IN
the/DT
company/NN
's/POS
financial/JJ
troubles/NNS
./.
Further/RB
,/,
he/PRP
said/VBD
,/,
the/DT
company/NN
does/VBZ
n't/RB
have/VB
the/DT
capital/NN
needed/VBN
to/TO
build/VB
the/DT
business/NN
over/IN
the/DT
next/JJ
year/NN
or/CC
two/CD
./.
``/``
We/PRP
flat/RB
ran/VBD
out/IN
of/IN
financing/NN
resources/NNS
,/,
''/''
Mr./NNP
Jerritts/NNP
said/VBD
./.
``/``
We/PRP
had/VBD
to/TO
do/VB
something/NN
structurally/RB
and/CC
radically/RB
different/JJ
./.
''/''
As/IN
a/DT
result/NN
,/,
he/PRP
said/VBD
NBI/NNP
will/MD
focus/VB
on/IN
servicing/VBG
its/PRP$
installed/VBN
base/NN
of/IN
systems/NNS
,/,
trying/VBG
to/TO
provide/VB
maintenance/NN
for/IN
other/JJ
manufacturers/NNS
and/CC
expanding/VBG
its/PRP$
software/NN
business/NN
,/,
using/VBG
some/DT
of/IN
the/DT
applications/NNS
it/PRP
developed/VBD
for/IN
its/PRP$
hardware/NN
./.
The/DT
company/NN
currently/RB
offers/VBZ
a/DT
word-processing/NN
package/NN
for/IN
personal/JJ
computers/NNS
called/VBN
Legend/NNP
./.
The/DT
company/NN
,/,
which/WDT
recently/RB
said/VBD
it/PRP
lacked/VBD
the/DT
profits/NNS
and/CC
capital/NN
to/TO
pay/VB
dividends/NNS
on/IN
its/PRP$
Series/NNP
A/NNP
convertible/JJ
preferred/VBN
stock/NN
,/,
said/VBD
it/PRP
has/VBZ
hired/VBN
an/DT
investment/NN
banker/NN
to/TO
help/VB
it/PRP
raise/VB
additional/JJ
cash/NN
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
NBI/NNP
common/NN
closed/VBD
at/IN
93/CD
cents/NNS
a/DT
share/NN
,/,
up/IN
31/CD
cents/NNS
./.
It/PRP
was/VBD
Richard/NNP
Nixon/NNP
's/POS
first/JJ
visit/NN
to/TO
China/NNP
in/IN
1972/CD
that/WDT
set/VBD
in/IN
motion/NN
the/DT
historic/JJ
rapprochement/NN
between/IN
Beijing/NNP
and/CC
Washington/NNP
./.
But/CC
the/DT
former/JJ
U.S./NNP
president/NN
's/POS
sixth/JJ
visit/NN
to/TO
China/NNP
,/,
during/IN
which/WDT
he/PRP
spoke/VBD
at/IN
length/NN
with/IN
Chinese/JJ
leaders/NNS
,/,
was/VBD
nowhere/RB
near/JJ
as/IN
successful/JJ
at/IN
easing/VBG
strains/NNS
that/WDT
have/VBP
recently/RB
afflicted/VBN
the/DT
Sino-U.S./NNP
relationship/NN
./.
Mr./NNP
Nixon/NNP
,/,
the/DT
most/RBS
prominent/JJ
American/NNP
to/TO
come/VB
to/TO
China/NNP
since/IN
Beijing/NNP
's/POS
bloody/JJ
suppression/NN
of/IN
pro-democracy/JJ
demonstrators/NNS
in/IN
June/NNP
,/,
harped/VBD
on/IN
international/JJ
outrage/NN
over/IN
the/DT
massacre/NN
./.
The/DT
Chinese/NNP
,/,
in/IN
turn/NN
,/,
took/VBD
aim/NN
at/IN
American/JJ
``/``
interference/NN
''/''
in/IN
China/NNP
's/POS
domestic/JJ
affairs/NNS
./.
One/CD
official/JJ
newspaper/NN
,/,
Legal/NNP
Daily/NNP
,/,
even/RB
directly/RB
criticized/VBD
Mr./NNP
Nixon/NNP
,/,
who/WP
is/VBZ
normally/RB
referred/VBN
to/TO
here/RB
as/IN
an/DT
``/``
old/JJ
friend/NN
./.
''/''
The/DT
paper/NN
accused/VBD
him/PRP
of/IN
being/VBG
a/DT
leading/VBG
proponent/NN
of/IN
``/``
peaceful/JJ
evolution/NN
,/,
''/''
a/DT
catch/NN
phrase/NN
to/TO
describe/VB
what/WP
China/NNP
believes/VBZ
is/VBZ
the/DT
policy/NN
of/IN
Western/JJ
countries/NNS
to/TO
seduce/VB
socialist/JJ
nations/NNS
into/IN
the/DT
capitalist/JJ
sphere/NN
./.
The/DT
tension/NN
was/VBD
evident/JJ
on/IN
Wednesday/NNP
evening/NN
during/IN
Mr./NNP
Nixon/NNP
's/POS
final/JJ
banquet/NN
toast/NN
,/,
normally/RB
an/DT
opportunity/NN
for/IN
reciting/VBG
platitudes/NNS
about/IN
eternal/JJ
friendship/NN
./.
Instead/RB
,/,
Mr./NNP
Nixon/NNP
reminded/VBD
his/PRP$
host/NN
,/,
Chinese/NNP
President/NNP
Yang/NNP
Shangkun/NNP
,/,
that/IN
Americans/NNPS
have/VBP
n't/RB
forgiven/VBN
China/NNP
's/POS
leaders/NNS
for/IN
the/DT
military/JJ
assault/NN
of/IN
June/NNP
3-4/CD
that/WDT
killed/VBD
hundreds/NNS
,/,
and/CC
perhaps/RB
thousands/NNS
,/,
of/IN
demonstrators/NNS
./.
``/``
Many/JJ
in/IN
the/DT
United/NNP
States/NNPS
,/,
including/VBG
many/JJ
friends/NNS
of/IN
China/NNP
,/,
believe/VBP
the/DT
crackdown/NN
was/VBD
excessive/JJ
and/CC
unjustified/JJ
,/,
''/''
Mr./NNP
Nixon/NNP
told/VBD
Mr./NNP
Yang/NNP
,/,
who/WP
was/VBD
directly/RB
involved/VBN
in/IN
ordering/VBG
the/DT
attack/NN
./.
``/``
The/DT
events/NNS
of/IN
April/NNP
through/IN
June/NNP
damaged/VBD
the/DT
respect/NN
and/CC
confidence/NN
which/WDT
most/JJS
Americans/NNPS
previously/RB
had/VBD
for/IN
the/DT
leaders/NNS
of/IN
China/NNP
./.
''/''
The/DT
Chinese/NNP
responded/VBD
in/IN
an/DT
equally/RB
undiplomatic/JJ
fashion/NN
./.
In/IN
talks/NNS
with/IN
Mr./NNP
Nixon/NNP
,/,
Chinese/JJ
leaders/NNS
expressed/VBD
no/DT
regret/NN
for/IN
the/DT
killings/NNS
,/,
and/CC
even/RB
suggested/VBD
that/IN
the/DT
U.S./NNP
was/VBD
prominently/RB
involved/VBN
in/IN
the/DT
demonstrations/NNS
this/DT
spring/NN
./.
In/IN
a/DT
meeting/NN
Tuesday/NNP
,/,
supreme/NN
leader/NN
,/,
Deng/NNP
Xiaoping/NNP
,/,
told/VBD
Mr./NNP
Nixon/NNP
,/,
``/``
Frankly/RB
speaking/VBG
,/,
the/DT
U.S./NNP
was/VBD
involved/VBN
too/RB
deeply/RB
in/IN
the/DT
turmoil/NN
and/CC
counterrevolutionary/JJ
rebellion/NN
which/WDT
occurred/VBD
in/IN
Beijing/NNP
not/RB
long/RB
ago/RB
./.
China/NNP
was/VBD
the/DT
real/JJ
victim/NN
and/CC
it/PRP
is/VBZ
unjust/JJ
to/TO
reprove/VB
China/NNP
for/IN
it/PRP
./.
''/''
Despite/IN
the/DT
harsh/JJ
exchanges/NNS
,/,
the/DT
U.S./NNP
and/CC
China/NNP
still/RB
seem/VBP
to/TO
be/VB
looking/VBG
for/IN
a/DT
way/NN
to/TO
mend/VB
relations/NNS
,/,
which/WDT
have/VBP
deteriorated/VBN
into/IN
what/WP
Mr./NNP
Nixon/NNP
referred/VBD
to/TO
as/IN
``/``
the/DT
greatest/JJS
crisis/NN
in/IN
Chinese-American/NNP
relations/NNS
''/''
since/IN
his/PRP$
initial/JJ
visit/NN
to/TO
China/NNP
17/CD
years/NNS
ago/IN
./.
In/IN
his/PRP$
return/NN
toast/NN
to/TO
Mr./NNP
Nixon/NNP
,/,
Mr./NNP
Yang/NNP
said/VBD
the/DT
relationship/NN
had/VBD
reached/VBN
a/DT
``/``
stalemate/NN
./.
''/''
Relations/NNS
between/IN
China/NNP
and/CC
the/DT
U.S./NNP
have/VBP
been/VBN
tense/JJ
since/IN
June/NNP
7/CD
,/,
when/WRB
Chinese/JJ
dissident/NN
Fang/NNP
Lizhi/NNP
and/CC
his/PRP$
wife/NN
,/,
Li/NNP
Shuxian/NNP
,/,
took/VBD
refuge/NN
in/IN
the/DT
U.S./NNP
Embassy/NNP
in/IN
Beijing/NNP
./.
Shortly/RB
afterwards/RB
,/,
Mr./NNP
Bush/NNP
imposed/VBD
a/DT
series/NN
of/IN
anti-China/JJ
sanctions/NNS
,/,
including/VBG
suspension/NN
of/IN
most/JJS
high-level/JJ
talks/NNS
,/,
which/WDT
could/MD
be/VB
codified/VBN
in/IN
U.S./NNP
congressional/JJ
legislation/NN
in/IN
the/DT
coming/VBG
weeks/NNS
./.
Mr./NNP
Nixon/NNP
is/VBZ
traveling/VBG
in/IN
China/NNP
as/IN
a/DT
private/JJ
citizen/NN
,/,
but/CC
he/PRP
has/VBZ
made/VBN
clear/RB
that/IN
he/PRP
is/VBZ
an/DT
unofficial/JJ
envoy/NN
for/IN
the/DT
Bush/NNP
administration/NN
./.
Mr./NNP
Nixon/NNP
met/VBD
Mr./NNP
Bush/NNP
and/CC
his/PRP$
national/JJ
security/NN
adviser/NN
,/,
Brent/NNP
Scowcroft/NNP
,/,
before/IN
coming/VBG
to/TO
China/NNP
on/IN
Saturday/NNP
./.
And/CC
he/PRP
plans/VBZ
to/TO
brief/VB
the/DT
president/NN
at/IN
the/DT
end/NN
of/IN
the/DT
week/NN
,/,
U.S./NNP
sources/NNS
said/VBD
./.
Mr./NNP
Nixon/NNP
was/VBD
to/TO
leave/VB
China/NNP
today/NN
./.
According/VBG
to/TO
an/DT
American/JJ
member/NN
of/IN
the/DT
Nixon/NNP
party/NN
,/,
the/DT
former/JJ
president/NN
raised/VBD
a/DT
number/NN
of/IN
controversial/JJ
issues/NNS
in/IN
his/PRP$
20/CD
hours/NNS
of/IN
talks/NNS
with/IN
top-level/JJ
Chinese/JJ
officials/NNS
./.
These/DT
included/VBD
China/NNP
's/POS
economic/JJ
policies/NNS
,/,
human/JJ
rights/NNS
and/CC
the/DT
question/NN
of/IN
Mr./NNP
Fang/NNP
./.
Mr./NNP
Nixon/NNP
also/RB
proposed/VBD
that/IN
China/NNP
restore/VB
its/PRP$
participation/NN
in/IN
the/DT
Fulbright/NNP
Program/NNP
,/,
a/DT
U.S./NNP
government-funded/JJ
academic/JJ
exchange/NN
./.
China/NNP
pulled/VBD
out/IN
of/IN
the/DT
program/NN
in/IN
July/NNP
./.
In/IN
his/PRP$
talks/NNS
,/,
the/DT
former/JJ
president/NN
urged/VBD
China/NNP
's/POS
leaders/NNS
to/TO
acknowledge/VB
that/DT
their/PRP$
nation/NN
is/VBZ
part/NN
of/IN
the/DT
world/NN
community/NN
and/CC
welcome/VB
the/DT
infusion/NN
of/IN
outside/JJ
contacts/NNS
and/CC
ideas/NNS
./.
``/``
Ideas/NNS
are/VBP
going/VBG
over/IN
borders/NNS
,/,
and/CC
there/EX
's/VBZ
no/DT
SDI/NNP
ideological/JJ
weapon/NN
that/WDT
can/MD
shoot/VB
them/PRP
down/IN
,/,
''/''
he/PRP
told/VBD
a/DT
group/NN
of/IN
Americans/NNPS
at/IN
the/DT
U.S./NNP
Embassy/NNP
on/IN
Wednesday/NNP
./.
There/EX
are/VBP
no/DT
signs/NNS
,/,
however/RB
,/,
of/IN
China/NNP
's/POS
yielding/NN
on/IN
key/JJ
issues/NNS
./.
But/CC
in/IN
one/CD
minor/JJ
matter/NN
,/,
Mr./NNP
Nixon/NNP
appears/VBZ
to/TO
have/VB
gained/VBN
a/DT
concession/NN
./.
In/IN
a/DT
meeting/NN
with/IN
Premier/NNP
Li/NNP
Peng/NNP
on/IN
Monday/NNP
,/,
Mr./NNP
Nixon/NNP
said/VBD
that/IN
he/PRP
hoped/VBD
he/PRP
would/MD
n't/RB
encounter/VB
guards/NNS
with/IN
machine/NN
guns/NNS
during/IN
his/PRP$
visit/NN
to/TO
the/DT
U.S./NNP
Embassy/NNP
./.
Sure/RB
enough/RB
,/,
when/WRB
he/PRP
arrived/VBD
at/IN
the/DT
embassy/NN
two/CD
days/NNS
later/JJ
,/,
the/DT
machine-gun-toting/JJ
guards/NNS
were/VBD
gone/VBN
--/:
for/IN
the/DT
first/JJ
time/NN
in/IN
five/CD
months/NNS
./.
A/DT
few/JJ
blocks/NNS
away/RB
,/,
at/IN
the/DT
U.S./NNP
ambassador/NN
's/POS
residence/NN
,/,
the/DT
guards/NNS
encircling/VBG
the/DT
compound/NN
also/RB
had/VBD
discarded/VBN
their/PRP$
Uzi-model/JJ
arms/NNS
for/IN
the/DT
first/JJ
time/NN
since/IN
early/JJ
June/NNP
./.
But/CC
the/DT
guards/NNS
there/RB
retained/VBN
their/PRP$
pistols/NNS
,/,
and/CC
a/DT
large/JJ
contingent/NN
of/IN
plainclothes/NNS
police/NNS
remained/VBD
nearby/RB
in/IN
unmarked/JJ
cars/NNS
./.
Moreover/RB
,/,
police/NNS
and/CC
soldiers/NNS
continue/VBP
to/TO
harass/VB
Americans/NNPS
,/,
who/WP
have/VBP
filed/VBN
several/JJ
protests/NNS
with/IN
the/DT
Foreign/NNP
Ministry/NNP
in/IN
the/DT
past/NN
week/NN
./.
Several/JJ
times/NNS
,/,
Chinese/JJ
guards/NNS
have/VBP
pointed/VBN
their/PRP$
automatic/JJ
rifles/NNS
at/IN
young/JJ
children/NNS
of/IN
U.S./NNP
diplomats/NNS
and/CC
clicked/VBD
the/DT
trigger/NN
./.
The/DT
rifles/NNS
were/VBD
n't/RB
loaded/VBN
./.
Your/PRP$
Oct./NNP
6/CD
article/NN
``/``
Japan/NNP
's/POS
Financial/JJ
Firms/NNS
Lure/VBP
Science/NN
Graduates/NNS
''/''
states/VBZ
,/,
``/``
Industrial/JJ
companies/NNS
are/VBP
accusing/VBG
financial/JJ
institutions/NNS
of/IN
jeopardizing/VBG
Japan/NNP
's/POS
economy/NN
by/IN
raising/VBG
the/DT
salary/NN
stakes/NNS
for/IN
new/JJ
employees/NNS
./.
''/''
The/DT
Japanese/JJ
industrial/JJ
companies/NNS
should/MD
know/VB
better/JJR
./.
They/PRP
are/VBP
barking/VBG
up/IN
the/DT
wrong/JJ
tree/NN
,/,
because/IN
it/PRP
is/VBZ
basically/RB
their/PRP$
fault/NN
they/PRP
ca/MD
n't/RB
attract/VB
new/JJ
employees/NNS
./.
Takuma/NNP
Yamamoto/NNP
,/,
president/NN
of/IN
Fujitsu/NNP
Ltd./NNP
,/,
believes/VBZ
``/``
the/DT
`/``
money/NN
worship/NN
'/''
among/IN
young/JJ
people/NNS
.../:
caused/VBD
the/DT
problem/NN
./.
''/''
He/PRP
is/VBZ
just/RB
passing/VBG
the/DT
buck/NN
to/TO
young/JJ
people/NNS
./.
What/WP
's/VBZ
wrong/JJ
with/IN
asking/VBG
for/IN
more/JJR
money/NN
?/.
Money/NN
is/VBZ
not/RB
everything/NN
,/,
but/CC
it/PRP
is/VBZ
necessary/JJ
,/,
and/CC
business/NN
is/VBZ
not/RB
volunteer/NN
work/NN
./.
It/PRP
is/VBZ
not/RB
unethical/JJ
to/TO
choose/VB
a/DT
higher-salaried/JJ
job/NN
./.
Unfortunately/RB
,/,
Japanese/JJ
manufacturers/NNS
have/VBP
neither/DT
good/JJ
working/NN
conditions/NNS
nor/CC
good/JJ
compensation/NN
packages/NNS
./.
I/PRP
get/VBP
the/DT
impression/NN
that/IN
some/DT
Japanese/JJ
managers/NNS
believe/VBP
working/VBG
harder/RBR
for/IN
less/JJR
money/NN
is/VBZ
beautiful/JJ
./.
I/PRP
visited/VBD
a/DT
lot/NN
of/IN
major/JJ
Japanese/JJ
manufacturers/NNS
,/,
but/CC
I/PRP
never/RB
felt/VBD
I/PRP
would/MD
want/VB
to/TO
be/VB
employed/VBN
by/IN
any/DT
of/IN
them/PRP
./.
Many/JJ
of/IN
them/PRP
recently/RB
have/VBP
been/VBN
spending/VBG
a/DT
lot/NN
of/IN
money/NN
on/IN
public/JJ
relations/NNS
and/CC
advertising/NN
to/TO
improve/VB
their/PRP$
images/NNS
,/,
but/CC
they/PRP
should/MD
realize/VB
that/IN
the/DT
most/RBS
important/JJ
thing/NN
is/VBZ
real/JJ
change/NN
,/,
not/RB
changing/VBG
people/NNS
's/POS
perceptions/NNS
./.
If/IN
the/DT
Japanese/JJ
companies/NNS
are/VBP
seriously/RB
considering/VBG
their/PRP$
survival/NN
,/,
they/PRP
could/MD
do/VB
at/IN
least/JJS
three/CD
things/NNS
to/TO
improve/VB
the/DT
situation/NN
:/:
raise/VB
salaries/NNS
higher/JJR
than/IN
those/DT
of/IN
financial/JJ
institutions/NNS
;/:
improve/VB
working/NN
conditions/NNS
better/JJR
offices/NNS
and/CC
more/JJR
vacations/NNS
,/,
for/IN
example/NN
more/JJR
labor/NN
from/IN
outside/JJ
Japan/NNP
./.
Hiroshi/NNP
Asada/NNP
Washington/NNP
In/IN
reference/NN
to/TO
your/PRP$
Oct./NNP
9/CD
page-one/NN
article/NN
``/``
Barbara/NNP
Bush/NNP
Earns/VBZ
Even/RB
Higher/JJR
Ratings/NNS
Than/IN
the/DT
President/NNP
,/,
''/''
it/PRP
is/VBZ
regrettable/JJ
that/IN
you/PRP
must/MD
continually/RB
define/VB
blacks/NNS
by/IN
our/PRP$
negatives/NNS
:/:
``/``
Among/IN
liberals/NNS
,/,
60/CD
%/NN
have/VBP
positive/JJ
views/NNS
of/IN
her/PRP
,/,
while/IN
50/CD
%/NN
approve/VBP
of/IN
the/DT
president/NN
's/POS
job/NN
performance/NN
./.
In/IN
part/NN
,/,
this/DT
may/MD
reflect/VB
the/DT
fact/NN
that/IN
`/``
she/PRP
speaks/VBZ
a/DT
more/JJR
progressive/JJ
language/NN
'/''
than/IN
her/PRP$
husband/NN
,/,
as/IN
Columbia/NNP
's/POS
Prof/NNP
./.
Ethel/NNP
Klein/NNP
puts/VBZ
it/PRP
./.
Among/IN
professionals/NNS
,/,
76/CD
%/NN
have/VBP
a/DT
favorable/JJ
opinion/NN
of/IN
her/PRP$
,/,
compared/VBN
to/TO
62/CD
%/NN
who/WP
approve/VBP
of/IN
her/PRP$
husband/NN
's/POS
performance/NN
./.
While/IN
a/DT
quarter/NN
of/IN
black/JJ
voters/NNS
disapprove/VBP
of/IN
Mr./NNP
Bush/NNP
's/POS
handling/NN
of/IN
his/PRP$
job/NN
,/,
only/RB
15/CD
%/NN
have/VBP
a/DT
negative/JJ
view/NN
of/IN
his/PRP$
spouse/NN
./.
''/''
The/DT
statistics/NNS
imply/VBP
that/IN
three-quarters/NNS
of/IN
blacks/NNS
approve/VBP
of/IN
Mr./NNP
Bush/NNP
's/POS
job/NN
performance/NN
and/CC
85/CD
%/NN
of/IN
blacks/NNS
approve/VBP
of/IN
Mrs./NNP
Bush/NNP
./.
If/IN
the/DT
assumption/NN
is/VBZ
that/IN
it/PRP
is/VBZ
surprising/JJ
that/IN
so/RB
few/JJ
blacks/NNS
find/VBP
Mr./NNP
and/CC
Mrs./NNP
Bush/NNP
distasteful/JJ
,/,
the/DT
positive/JJ
view/NN
is/VBZ
even/RB
more/RBR
newsworthy/JJ
./.
Such/PDT
an/DT
editorial/NN
point/NN
of/IN
view/NN
perpetuates/VBZ
an/DT
insidious/JJ
,/,
stereotyped/JJ
perspective/NN
./.
Why/WRB
are/VBP
we/PRP
blacks/NNS
continually/RB
defined/VBN
by/IN
our/PRP$
minority/NN
and/CC
the/DT
lowest/JJS
common/JJ
denominator/NN
./.
Preston/NNP
G./NNP
Foster/NNP
Birmingham/NNP
,/,
Ala/NNP
./.
The/DT
National/NNP
Association/NNP
of/IN
Securities/NNPS
Dealers/NNPS
,/,
the/DT
self-regulatory/JJ
organization/NN
for/IN
the/DT
over-the-counter/JJ
securities/NNS
markets/NNS
,/,
disciplined/VBD
a/DT
number/NN
of/IN
firms/NNS
and/CC
individuals/NNS
for/IN
alleged/JJ
violations/NNS
of/IN
industry/NN
rules/NNS
./.
Two/CD
firms/NNS
were/VBD
expelled/VBN
from/IN
the/DT
NASD/NNP
,/,
three/CD
were/VBD
suspended/VBN
or/CC
barred/VBN
and/CC
nine/CD
were/VBD
fined/VBN
./.
First/NNP
Securities/NNPS
Group/NNP
of/IN
California/NNP
and/CC
a/DT
principal/NN
of/IN
the/DT
firm/NN
,/,
Louis/NNP
Fernando/NNP
Vargas/NNP
of/IN
Marina/NNP
del/DT
Rey/NNP
,/,
Calif./NNP
,/,
were/VBD
jointly/RB
fined/VBN
$/$
15,000/CD
and/CC
expelled/VBD
for/IN
alleged/VBN
violations/NNS
of/IN
reporting/VBG
requirements/NNS
on/IN
securities/NNS
sales/NNS
./.
Also/RB
,/,
Mr./NNP
Vargas/NNP
was/VBD
barred/VBN
from/IN
association/NN
with/IN
any/DT
NASD/NNP
member/NN
./.
Neither/DT
First/NNP
Securities/NNP
,/,
of/IN
Beverly/NNP
Hills/NNP
,/,
nor/CC
Mr./NNP
Vargas/NNP
could/MD
be/VB
reached/VBN
for/IN
comment/NN
./.
A/DT
telephone-information/NN
operator/NN
had/VBD
no/DT
listing/NN
for/IN
either/DT
party/NN
./.
J.L./NNP
Henry/NNP
&/CC
Co./NNP
,/,
Miami/NNP
,/,
and/CC
a/DT
principal/NN
of/IN
the/DT
firm/NN
,/,
Henry/NNP
I./NNP
Otero/NNP
of/IN
Miami/NNP
,/,
were/VBD
jointly/RB
fined/VBN
$/$
30,000/CD
and/CC
expelled/VBN
,/,
for/IN
alleged/JJ
improper/JJ
use/NN
of/IN
a/DT
customer/NN
's/POS
funds/NNS
,/,
among/IN
other/JJ
things/NNS
./.
Also/RB
,/,
Mr./NNP
Otero/NNP
was/VBD
barred/VBN
from/IN
association/NN
with/IN
any/DT
NASD/NNP
member/NN
./.
J.L./NNP
Henry/NNP
has/VBZ
n't/RB
any/DT
Miami/NNP
telephone/NN
listing/NN
,/,
an/DT
operator/NN
said/VBD
./.
Mr./NNP
Otero/NNP
,/,
who/WP
apparently/RB
has/VBZ
an/DT
unpublished/JJ
number/NN
,/,
also/RB
could/MD
n't/RB
be/VB
reached/VBN
./.
Biscayne/NNP
Securities/NNP
Corp./NNP
,/,
of/IN
Lauderhill/NNP
,/,
Fla./NNP
,/,
and/CC
a/DT
principal/NN
of/IN
the/DT
firm/NN
,/,
Alvin/NNP
Rosenblum/NNP
of/IN
Plantation/NNP
,/,
Fla./NNP
,/,
were/VBD
jointly/RB
fined/VBN
$/$
20,000/CD
and/CC
given/VBN
10-day/JJ
suspensions/NNS
for/IN
allegedly/RB
selling/VBG
securities/NNS
at/IN
unfair/JJ
prices/NNS
./.
Biscayne/NNP
has/VBZ
n't/RB
any/DT
telephone/NN
listing/NN
,/,
an/DT
operator/NN
said/VBD
./.
Mr./NNP
Rosenblum/NNP
,/,
who/WP
apparently/RB
has/VBZ
an/DT
unpublished/JJ
phone/NN
number/NN
,/,
also/RB
could/MD
n't/RB
be/VB
reached/VBN
./.
Triton/NNP
Securities/NNP
,/,
of/IN
Danville/NNP
,/,
Calif./NNP
,/,
and/CC
a/DT
principal/NN
of/IN
the/DT
firm/NN
,/,
Delwin/NNP
George/NNP
Chase/NNP
,/,
also/RB
of/IN
Danville/NNP
,/,
were/VBD
jointly/RB
fined/VBN
$/$
10,000/CD
and/CC
given/VBN
30-day/JJ
suspensions/NNS
as/IN
part/NN
of/IN
a/DT
settlement/NN
./.
While/IN
neither/DT
admitting/VBG
nor/CC
denying/VBG
wrongdoing/NN
,/,
Triton/NNP
and/CC
Mr./NNP
Chase/NNP
consented/VBD
to/TO
findings/NNS
of/IN
violations/NNS
in/IN
connection/NN
with/IN
limited-partnership/NN
sales/NNS
./.
Officials/NNS
of/IN
Triton/NNP
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
Mr./NNP
Chase/NNP
did/VBD
n't/RB
return/VB
a/DT
telephone/NN
call/NN
to/TO
his/PRP$
office/NN
./.
Crane/NNP
&/CC
Co./NNP
Securities/NNP
Inc./NNP
,/,
of/IN
Mount/NNP
Clemens/NNP
,/,
Mich./NNP
,/,
and/CC
its/PRP$
president/NN
,/,
Glenn/NNP
R./NNP
Crane/NNP
,/,
of/IN
Sterling/NNP
Heights/NNP
,/,
Mich./NNP
,/,
consented/VBD
to/TO
a/DT
joint/JJ
fine/NN
of/IN
$/$
10,000/CD
./.
Without/IN
admitting/VBG
or/CC
denying/VBG
wrongdoing/NN
,/,
they/PRP
consented/VBD
to/TO
findings/NNS
of/IN
violations/NNS
of/IN
escrow/NN
and/CC
record-keeping/JJ
rules/NNS
./.
Mr./NNP
Crane/NNP
did/VBD
n't/RB
return/VB
a/DT
call/NN
seeking/VBG
comment/NN
./.
First/NNP
Commonwealth/NNP
Securities/NNP
Corp./NNP
,/,
of/IN
New/NNP
Orleans/NNP
,/,
and/CC
its/PRP$
president/NN
,/,
Kenneth/NNP
J./NNP
Canepa/NNP
,/,
also/RB
of/IN
New/NNP
Orleans/NNP
,/,
consented/VBD
to/TO
a/DT
$/$
10,000/CD
fine/NN
./.
Also/RB
,/,
Mr./NNP
Canepa/NNP
received/VBD
a/DT
two-week/JJ
suspension/NN
``/``
in/IN
a/DT
principal/JJ
capacity/NN
./.
''/''
Without/IN
admitting/VBG
or/CC
denying/VBG
wrongdoing/NN
,/,
they/PRP
consented/VBD
to/TO
findings/NNS
that/IN
they/PRP
had/VBD
inaccurately/RB
represented/VBN
the/DT
firm/NN
's/POS
net/NN
capital/NN
,/,
maintained/VBD
inaccurate/JJ
books/NNS
and/CC
records/NNS
,/,
and/CC
made/VBD
other/JJ
violations/NNS
./.
Mr./NNP
Canepa/NNP
confirmed/VBD
he/PRP
had/VBD
consented/VBN
to/TO
the/DT
sanctions/NNS
but/CC
declined/VBD
to/TO
comment/VB
further/RB
./.
Weatherly/NNP
Securities/NNP
Corp./NNP
,/,
New/NNP
York/NNP
,/,
and/CC
three/CD
of/IN
its/PRP$
principals/NNS
--/:
Dell/NNP
Eugene/NNP
Keehn/NNP
and/CC
William/NNP
Northy/NNP
Prater/NNP
Jr./NNP
,/,
both/DT
of/IN
Mercer/NNP
Island/NNP
,/,
Wash./NNP
,/,
and/CC
Thomas/NNP
Albert/NNP
McFall/NNP
,/,
of/IN
Red/NNP
Bank/NNP
,/,
N.J/NNP
./.
--/:
consented/VBD
to/TO
a/DT
fine/NN
of/IN
$/$
20,000/CD
./.
Without/IN
admitting/VBG
or/CC
denying/VBG
wrongdoing/NN
,/,
they/PRP
consented/VBD
to/TO
findings/NNS
that/IN
they/PRP
failed/VBD
to/TO
return/VB
funds/NNS
owed/VBN
to/TO
customers/NNS
in/IN
connection/NN
with/IN
a/DT
limited-partnership/NN
offering/NN
./.
Reached/VBN
at/IN
his/PRP$
office/NN
,/,
Mr./NNP
McFall/NNP
,/,
currently/RB
chairman/NN
,/,
said/VBD
,/,
``/``
An/DT
implication/NN
that/IN
we/PRP
failed/VBD
to/TO
return/VB
investor/NN
funds/NNS
is/VBZ
inappropriate/JJ
and/CC
inaccurate/JJ
./.
''/''
He/PRP
described/VBD
the/DT
situation/NN
as/IN
``/``
an/DT
escrow/NN
problem/NN
,/,
a/DT
timing/NN
issue/NN
,/,
''/''
which/WDT
he/PRP
said/VBD
was/VBD
rapidly/RB
rectified/VBN
,/,
with/IN
no/DT
losses/NNS
to/TO
customers/NNS
./.
W.N./NNP
Whelen/NNP
&/CC
Co./NNP
,/,
of/IN
Georgetown/NNP
,/,
Del./NNP
,/,
and/CC
its/PRP$
president/NN
,/,
William/NNP
N./NNP
Whelen/NNP
Jr./NNP
,/,
also/RB
of/IN
Georgetown/NNP
,/,
were/VBD
barred/VBN
from/IN
transacting/VBG
principal/JJ
trades/NNS
for/IN
90/CD
days/NNS
and/CC
were/VBD
jointly/RB
fined/VBN
$/$
15,000/CD
./.
The/DT
firm/NN
and/CC
Mr./NNP
Whelen/NNP
allegedly/RB
sold/VBD
securities/NNS
to/TO
the/DT
public/NN
at/IN
unfair/JJ
prices/NNS
,/,
among/IN
other/JJ
alleged/JJ
violations/NNS
./.
Mr./NNP
Whelen/NNP
denied/VBD
the/DT
firm/NN
had/VBD
sold/VBN
securities/NNS
at/IN
unfair/JJ
prices/NNS
and/CC
suggested/VBD
that/IN
the/DT
examination/NN
practices/NNS
of/IN
the/DT
NASD/NNP
need/VBP
improvement/NN
./.
The/DT
firm/NN
and/CC
the/DT
NASD/NNP
differ/VBP
over/IN
the/DT
meaning/NN
of/IN
markup/NN
and/CC
markdown/NN
,/,
he/PRP
added/VBD
./.
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
,/,
New/NNP
York/NNP
,/,
which/WDT
is/VBZ
62%-owned/JJ
by/IN
American/NNP
Express/NNP
Co./NNP
,/,
consented/VBD
to/TO
a/DT
$/$
10,000/CD
fine/NN
./.
Without/IN
admitting/VBG
or/CC
denying/VBG
wrongdoing/NN
,/,
the/DT
firm/NN
consented/VBD
to/TO
findings/NNS
that/IN
it/PRP
failed/VBD
to/TO
respond/VB
``/``
in/IN
a/DT
timely/JJ
manner/NN
''/''
to/TO
the/DT
NASD/NNP
's/POS
requests/NNS
for/IN
information/NN
in/IN
connection/NN
with/IN
a/DT
customer/NN
complaint/NN
./.
A/DT
Shearson/NNP
spokesman/NN
had/VBD
no/DT
comment/NN
./.
The/DT
following/VBG
individuals/NNS
were/VBD
fined/VBN
as/IN
indicated/VBN
and/CC
barred/VBN
from/IN
association/NN
with/IN
NASD/NNP
members/NNS
,/,
or/CC
,/,
where/WRB
noted/VBN
,/,
suspended/VBN
./.
Except/IN
where/WRB
noted/VBN
,/,
none/NN
of/IN
these/DT
people/NNS
could/MD
be/VB
reached/VBN
for/IN
comment/NN
or/CC
had/VBD
any/DT
comment/NN
./.
Andrew/NNP
Derel/NNP
Adams/NNP
,/,
Killeen/NNP
,/,
Texas/NNP
,/,
fined/VBN
$/$
15,000/CD
;/:
John/NNP
Francis/NNP
Angier/NNP
Jr./NNP
,/,
Reddington/NNP
Shores/NNP
,/,
Fla./NNP
,/,
$/$
15,000/CD
;/:
Mark/NNP
Anthony/NNP
,/,
Arlington/NNP
Heights/NNP
,/,
Ill./NNP
,/,
$/$
10,000/CD
and/CC
30-day/JJ
suspension/NN
;/:
William/NNP
Stirlen/NNP
,/,
Arlington/NNP
Heights/NNP
,/,
Ill./NNP
,/,
$/$
7,500/CD
and/CC
30-day/JJ
suspension/NN
;/:
Fred/NNP
W./NNP
Bonnell/NNP
,/,
Boulder/NNP
,/,
Colo./NNP
,/,
$/$
2,500/CD
and/CC
six-month/JJ
suspension/NN
;/:
Michael/NNP
J./NNP
Boorse/NNP
,/,
Horsham/NNP
,/,
Pa./NNP
;/:
David/NNP
Chiodo/NNP
,/,
Dallas/NNP
,/,
$/$
5,000/CD
,/,
barred/VBD
as/IN
a/DT
principal/NN
;/:
Camille/NNP
Chafic/NNP
Cotran/NNP
,/,
London/NNP
,/,
$/$
25,000/CD
;/:
John/NNP
William/NNP
Curry/NNP
,/,
fined/VBN
$/$
5,000/CD
,/,
ordered/VBN
to/TO
disgorge/VB
$/$
30,000/CD
,/,
one-year/JJ
suspension/NN
./.
John/NNP
William/NNP
Davis/NNP
,/,
Colonsville/NNP
,/,
Miss./NNP
,/,
fined/VBN
$/$
200,000/CD
;/:
Jeffrey/NNP
Gerard/NNP
Dompierre/NNP
,/,
Valrico/NNP
,/,
Fla./NNP
,/,
$/$
5,000/CD
and/CC
10-day/JJ
suspension/NN
;/:
Eugene/NNP
Michael/NNP
Felten/NNP
,/,
La/NNP
Canada/NNP
,/,
Calif./NNP
,/,
fined/VBN
$/$
25,000/CD
,/,
ordered/VBN
to/TO
disgorge/VB
$/$
16,072/CD
and/CC
suspended/VBN
one/CD
year/NN
;/:
Marion/NNP
Stewart/NNP
Spitler/NNP
,/,
La/NNP
Canada/NNP
,/,
fined/VBN
$/$
15,000/CD
,/,
ordered/VBN
to/TO
disgorge/VB
$/$
18,444/CD
and/CC
suspended/VBN
six/CD
months/NNS
./.
Mr./NNP
Felten/NNP
said/VBD
,/,
``/``
We/PRP
got/VBD
what/WP
amounted/VBD
to/TO
a/DT
parking/NN
ticket/NN
,/,
and/CC
by/IN
complaining/VBG
about/IN
it/PRP
,/,
we/PRP
ended/VBD
up/IN
with/IN
a/DT
sizable/JJ
fine/NN
and/CC
suspension/NN
./.
''/''
The/DT
matter/NN
``/``
did/VBD
n't/RB
involve/VB
anybody/NN
's/POS
securities/NNS
transactions/NNS
,/,
''/''
he/PRP
added/VBD
./.
Victor/NNP
Stanley/NNP
Fishman/NNP
,/,
Longwood/NNP
,/,
Fla./NNP
,/,
fined/VBN
$/$
25,000/CD
;/:
William/NNP
Harold/NNP
Floyd/NNP
,/,
Houston/NNP
,/,
$/$
100,000/CD
;/:
Michael/NNP
Anthony/NNP
Houston/NNP
,/,
Bronx/NNP
,/,
N.Y./NNP
,/,
$/$
15,000/CD
;/:
Amin/NNP
Jalaalwalikraam/NNP
,/,
Glenham/NNP
,/,
N.Y./NNP
,/,
$/$
60,000/CD
;/:
Richard/NNP
F./NNP
Knapp/NNP
,/,
London/NNP
,/,
$/$
10,000/CD
and/CC
30-day/JJ
suspension/NN
;/:
Deborah/NNP
Renee/NNP
Martin/NNP
,/,
St./NNP
Louis/NNP
,/,
$/$
15,000/CD
;/:
Joseph/NNP
Francis/NNP
Muscolina/NNP
Jr./NNP
,/,
Palisades/NNP
Park/NNP
,/,
N.J./NNP
,/,
$/$
15,000/CD
;/:
Robert/NNP
C./NNP
Najarian/NNP
,/,
Brooklyn/NNP
Park/NNP
,/,
Minn./NNP
,/,
$/$
15,000/CD
;/:
Edward/NNP
Robert/NNP
Norwick/NNP
,/,
Nesconset/NNP
,/,
N.Y./NNP
,/,
$/$
30,000/CD
./.
Charles/NNP
D./NNP
Phipps/NNP
Sr./NNP
,/,
Hermitage/NNP
,/,
Pa./NNP
,/,
fined/VBN
$/$
10,000/CD
;/:
David/NNP
Scott/NNP
Rankin/NNP
,/,
Lake/NNP
St./NNP
Louis/NNP
,/,
Mo./NNP
,/,
$/$
15,000/CD
;/:
Leigh/NNP
A./NNP
Sanderoff/NNP
,/,
Gaithersburg/NNP
,/,
Md./NNP
,/,
fined/VBN
$/$
45,000/CD
,/,
ordered/VBN
to/TO
disgorge/VB
$/$
12,252/CD
;/:
Sandra/NNP
Ann/NNP
Smith/NNP
,/,
Ridgefield/NNP
,/,
N.J./NNP
,/,
$/$
15,000/CD
;/:
James/NNP
G./NNP
Spence/NNP
,/,
Aloha/NNP
,/,
Ore./NNP
,/,
$/$
5,000/CD
and/CC
six-month/JJ
suspension/NN
;/:
Mona/NNP
Sun/NNP
,/,
Jamaica/NNP
Estates/NNP
,/,
N.Y./NNP
,/,
$/$
60,000/CD
;/:
William/NNP
Swearingen/NNP
,/,
Minneapolis/NNP
,/,
$/$
15,000/CD
and/CC
six-month/JJ
suspension/NN
;/:
John/NNP
Bew/NNP
Wong/NNP
,/,
San/NNP
Francisco/NNP
,/,
$/$
25,000/CD
;/:
Rabia/NNP
M./NNP
Zayed/NNP
,/,
San/NNP
Francisco/NNP
,/,
$/$
50,000/CD
./.
The/DT
following/VBG
were/VBD
neither/DT
barred/VBN
nor/CC
suspended/VBN
:/:
Stephanie/NNP
Veselich/NNP
Enright/NNP
,/,
Rolling/NNP
Hills/NNP
,/,
Calif./NNP
,/,
fined/VBN
$/$
2,500/CD
and/CC
ordered/VBN
to/TO
disgorge/VB
$/$
11,762/CD
;/:
Stuart/NNP
Lane/NNP
Russel/NNP
,/,
Glendale/NNP
,/,
Calif./NNP
,/,
fined/VBN
$/$
2,500/CD
and/CC
ordered/VBN
to/TO
disgorge/VB
$/$
14,821/CD
;/:
Devon/NNP
Nilson/NNP
Dahl/NNP
,/,
Fountain/NNP
Valley/NNP
,/,
Calif./NNP
,/,
fined/VBN
$/$
82,389/CD
./.
Mr./NNP
Dahl/NNP
,/,
a/DT
registered/VBN
representative/NN
in/IN
the/DT
insurance/NN
business/NN
,/,
said/VBD
he/PRP
``/``
screwed/VBD
up/IN
''/''
because/IN
he/PRP
did/VBD
n't/RB
realize/VB
he/PRP
was/VBD
breaking/VBG
securities/NNS
laws/NNS
./.
``/``
Insurance/NN
agents/NNS
have/VBP
been/VBN
forced/VBN
by/IN
their/PRP$
companies/NNS
into/IN
becoming/VBG
registered/VBN
reps/NNS
,/,
''/''
he/PRP
said/VBD
,/,
``/``
but/CC
they/PRP
are/VBP
not/RB
providing/VBG
compliance/NN
and/CC
security-type/JJ
training/NN
so/IN
that/IN
we/PRP
can/MD
avoid/VB
stupid/JJ
mistakes/NNS
./.
''/''
The/DT
following/NN
were/VBD
barred/VBN
or/CC
,/,
where/WRB
noted/VBN
,/,
suspended/VBN
and/CC
consented/VBD
to/TO
findings/NNS
without/IN
admitting/VBG
or/CC
denying/VBG
wrongdoing/NN
:/:
Edward/NNP
L./NNP
Cole/NNP
,/,
Jackson/NNP
,/,
Miss./NNP
,/,
$/$
10,000/CD
fine/NN
;/:
Rita/NNP
Rae/NNP
Cross/NNP
,/,
Denver/NNP
,/,
$/$
2,500/CD
fine/NN
and/CC
30-day/JJ
suspension/NN
;/:
Thomas/NNP
Richard/NNP
Meinders/NNP
,/,
Colorado/NNP
Springs/NNP
,/,
Colo./NNP
,/,
$/$
2,000/CD
fine/NN
,/,
five-day/JJ
suspension/NN
and/CC
eight-month/JJ
suspension/NN
as/IN
a/DT
principal/NN
;/:
Ronald/NNP
A./NNP
Cutrer/NNP
,/,
Baton/NNP
Rouge/NNP
,/,
La./NNP
,/,
$/$
15,000/CD
fine/NN
and/CC
one-month/JJ
suspension/NN
;/:
Karl/NNP
Grant/NNP
Hale/NNP
,/,
Midvale/NNP
,/,
Utah/NNP
,/,
$/$
15,000/CD
fine/NN
;/:
Clinton/NNP
P./NNP
Hayne/NNP
,/,
New/NNP
Orleans/NNP
,/,
$/$
7,500/CD
fine/NN
and/CC
one-week/JJ
suspension/NN
;/:
Richard/NNP
M./NNP
Kane/NNP
,/,
Coconut/NNP
Creek/NNP
,/,
Fla./NNP
,/,
$/$
250,000/CD
fine/NN
;/:
John/NNP
B./NNP
Merrick/NNP
,/,
Aurora/NNP
,/,
Colo./NNP
,/,
$/$
1,000/CD
fine/NN
and/CC
10-day/JJ
suspension/NN
;/:
John/NNP
P./NNP
Miller/NNP
,/,
Baton/NNP
Rouge/NNP
,/,
$/$
2,000/CD
fine/NN
and/CC
two-week/JJ
suspension/NN
;/:
Randolph/NNP
K./NNP
Pace/NNP
,/,
New/NNP
York/NNP
,/,
$/$
10,000/CD
fine/NN
and/CC
90-day/JJ
suspension/NN
;/:
Brian/NNP
D./NNP
Pitcher/NNP
,/,
New/NNP
Providence/NNP
,/,
N.J./NNP
,/,
$/$
30,000/CD
fine/NN
;/:
Wayne/NNP
A./NNP
Russo/NNP
,/,
Bridgeville/NNP
,/,
Pa./NNP
,/,
$/$
4,000/CD
fine/NN
and/CC
15-day/JJ
suspension/NN
;/:
Orville/NNP
Leroy/NNP
Sandberg/NNP
,/,
Aurora/NNP
,/,
Colo./NNP
,/,
$/$
3,500/CD
fine/NN
and/CC
10-day/JJ
suspension/NN
;/:
Richard/NNP
T./NNP
Marchese/NNP
,/,
Las/NNP
Vegas/NNP
,/,
Nev./NNP
,/,
$/$
5,000/CD
and/CC
one-year/JJ
suspension/NN
;/:
Eric/NNP
G./NNP
Monchecourt/NNP
,/,
Las/NNP
Vegas/NNP
,/,
$/$
5,000/CD
and/CC
one-year/JJ
suspension/NN
;/:
and/CC
Robert/NNP
Gerhard/NNP
Smith/NNP
,/,
Carson/NNP
City/NNP
,/,
Nev./NNP
,/,
two-year/JJ
suspension/NN
./.
``/``
I/PRP
was/VBD
n't/RB
ever/RB
actively/RB
engaged/VBN
in/IN
any/DT
securities/NNS
activities/NNS
,/,
''/''
said/VBD
Mr./NNP
Cutrer/NNP
./.
``/``
I/PRP
never/RB
had/VBD
any/DT
clients/NNS
at/IN
all/DT
./.
It/PRP
was/VBD
just/RB
a/DT
stupid/JJ
mistake/NN
to/TO
get/VB
the/DT
license/NN
,/,
''/''
he/PRP
said/VBD
,/,
adding/VBG
,/,
``/``
I/PRP
'd/MD
just/RB
as/RB
soon/RB
not/RB
get/VB
into/IN
''/''
details/NNS
of/IN
the/DT
settlement/NN
./.
Program/NN
traders/NNS
are/VBP
fond/JJ
of/IN
predicting/VBG
that/IN
if/IN
they/PRP
are/VBP
blocked/VBN
in/IN
the/DT
U.S./NNP
,/,
they/PRP
will/MD
simply/RB
emigrate/VB
to/TO
foreign/JJ
stock/NN
markets/NNS
./.
But/CC
in/IN
London/NNP
and/CC
Tokyo/NNP
,/,
where/WRB
computer-driven/JJ
trading/NN
now/RB
plays/VBZ
a/DT
small/JJ
but/CC
growing/VBG
role/NN
,/,
traders/NNS
say/VBP
a/DT
number/NN
of/IN
hurdles/NNS
loom/VBP
./.
Government/NN
officials/NNS
,/,
especially/RB
in/IN
Japan/NNP
,/,
probably/RB
would/MD
resist/VB
any/DT
onslaught/NN
of/IN
program/NN
trading/NN
by/IN
players/NNS
trying/VBG
to/TO
shrug/VB
off/IN
the/DT
U.S./NNP
furor/NN
over/IN
their/PRP$
activities/NNS
and/CC
marching/VBG
abroad/RB
with/IN
their/PRP$
business/NN
./.
Japan/NNP
is/VBZ
``/``
very/RB
concerned/VBN
''/''
about/IN
the/DT
possible/JJ
effects/NNS
of/IN
program/NN
trading/NN
,/,
a/DT
senior/JJ
Japanese/JJ
official/NN
said/VBD
after/IN
the/DT
Oct./NNP
13/CD
stock/NN
plunge/NN
in/IN
New/NNP
York/NNP
./.
U.S./NNP
stock-index/NN
futures/NNS
are/VBP
n't/RB
even/RB
traded/VBN
in/IN
Japan/NNP
now/RB
./.
And/CC
because/IN
of/IN
the/DT
time/NN
difference/NN
,/,
the/DT
Japanese/JJ
and/CC
the/DT
U.S./NNP
markets/NNS
'/POS
trading/NN
hours/NNS
do/VBP
n't/RB
overlap/VB
./.
It/PRP
all/DT
adds/VBZ
up/IN
to/TO
a/DT
barrier/NN
to/TO
American-style/JJ
index/NN
arbitrage/NN
,/,
the/DT
most/RBS
popular/JJ
form/NN
of/IN
U.S./NNP
program/NN
trading/NN
that/WDT
seeks/VBZ
to/TO
exploit/VB
brief/JJ
differences/NNS
between/IN
prices/NNS
of/IN
stocks/NNS
in/IN
New/NNP
York/NNP
and/CC
the/DT
price/NN
of/IN
a/DT
futures/NNS
contract/NN
in/IN
Chicago/NNP
based/VBN
on/IN
those/DT
stocks/NNS
./.
About/IN
11.6/CD
%/NN
of/IN
all/DT
program/NN
trading/NN
by/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
firms/NNS
in/IN
September/NNP
took/VBD
place/NN
in/IN
foreign/JJ
markets/NNS
,/,
according/VBG
to/TO
Big/NNP
Board/NNP
data/NNS
./.
Yet/CC
it/PRP
is/VBZ
difficult/JJ
to/TO
imagine/VB
Japan/NNP
racing/VBG
to/TO
introduce/VB
Chicago-style/JJ
stock-index/JJ
futures/NNS
./.
Japan/NNP
's/POS
Finance/NNP
Ministry/NNP
already/RB
is/VBZ
scrutinizing/VBG
institutional/JJ
investors/NNS
'/POS
activity/NN
to/TO
see/VB
whether/IN
policy/NN
changes/NNS
are/VBP
needed/VBN
to/TO
cope/VB
with/IN
the/DT
current/JJ
level/NN
of/IN
program/NN
trading/NN
,/,
said/VBD
Makato/NNP
Utsumi/NNP
,/,
vice/NN
minister/NN
for/IN
international/JJ
finance/NN
./.
Program/NN
trading/NN
has/VBZ
taken/VBN
off/IN
in/IN
Japan/NNP
since/IN
last/JJ
year/NN
's/POS
introduction/NN
of/IN
home-market/JJ
stock-index/NN
futures/NNS
trading/NN
on/IN
the/DT
Tokyo/NNP
and/CC
Osaka/NNP
stock/NN
exchanges/NNS
./.
But/CC
regulators/NNS
are/VBP
wary/JJ
./.
They/PRP
have/VBP
n't/RB
forgotten/VBN
the/DT
leap/NN
in/IN
share/NN
prices/NNS
last/JJ
Dec./NNP
7/CD
,/,
when/WRB
the/DT
first/JJ
bout/NN
of/IN
foreign-led/JJ
index/NN
arbitrage/NN
drove/VBD
stocks/NNS
skyward/RB
in/IN
the/DT
last/JJ
half-hour/JJ
of/IN
trading/NN
,/,
startling/JJ
regulators/NNS
who/WP
thought/VBD
they/PRP
had/VBD
written/VBN
enough/JJ
rules/NNS
to/TO
prevent/VB
such/PDT
a/DT
swing/NN
./.
Japan/NNP
's/POS
Finance/NNP
Ministry/NNP
had/VBD
set/VBN
up/IN
mechanisms/NNS
to/TO
limit/VB
how/WRB
far/JJ
futures/NNS
prices/NNS
could/MD
fall/VB
in/IN
a/DT
single/JJ
session/NN
and/CC
to/TO
give/VB
market/NN
operators/NNS
the/DT
authority/NN
to/TO
suspend/VB
trading/NN
in/IN
futures/NNS
at/IN
any/DT
time/NN
./.
``/``
Maybe/RB
it/PRP
was/VBD
n't/RB
enough/RB
,/,
''/''
a/DT
Finance/NNP
Ministry/NNP
official/NN
noted/VBD
after/IN
the/DT
Dec./NNP
7/CD
surge/NN
./.
Japan/NNP
's/POS
regulators/NNS
have/VBP
since/IN
tightened/VBN
controls/NNS
on/IN
index-related/JJ
stock/NN
purchases/NNS
./.
Tokyo/NNP
's/POS
leading/VBG
program/NN
traders/NNS
are/VBP
the/DT
big/JJ
U.S./NNP
securities/NNS
houses/NNS
,/,
though/IN
the/DT
Japanese/NNP
are/VBP
playing/VBG
catch-up/NN
./.
Some/DT
U.S./NNP
firms/NNS
,/,
notably/RB
Salomon/NNP
Inc./NNP
and/CC
Morgan/NNP
Stanley/NNP
Group/NNP
Inc./NNP
,/,
have/VBP
reaped/VBN
a/DT
hefty/JJ
chunk/NN
of/IN
their/PRP$
Japanese/JJ
earnings/NNS
from/IN
index/NN
arbitrage/NN
,/,
both/DT
for/IN
customers/NNS
and/CC
for/IN
their/PRP$
own/JJ
accounts/NNS
./.
Morgan/NNP
Stanley/NNP
last/JJ
week/NN
joined/VBD
a/DT
growing/VBG
list/NN
of/IN
U.S./NNP
securities/NNS
firms/NNS
that/WDT
have/VBP
stopped/VBN
doing/VBG
index/NN
arbitrage/NN
for/IN
their/PRP$
own/JJ
accounts/NNS
./.
Both/DT
Deryck/NNP
C./NNP
Maughan/NNP
,/,
who/WP
heads/VBZ
Salomon/NNP
in/IN
Tokyo/NNP
,/,
and/CC
John/NNP
S./NNP
Wadsworth/NNP
,/,
who/WP
heads/VBZ
Morgan/NNP
Stanley/NNP
there/RB
,/,
ascribe/VBP
a/DT
good/JJ
part/NN
of/IN
their/PRP$
firms/NNS
'/POS
success/NN
in/IN
Tokyo/NNP
to/TO
their/PRP$
ability/NN
to/TO
offer/VB
sophisticated/JJ
,/,
futures-related/JJ
investment/NN
strategies/NNS
to/TO
big/JJ
institutional/JJ
clients/NNS
./.
They/PRP
do/VBP
n't/RB
have/VB
plans/NNS
to/TO
cut/VB
back/RB
./.
``/``
It/PRP
has/VBZ
not/RB
been/VBN
disruptive/JJ
in/IN
the/DT
markets/NNS
here/RB
,/,
''/''
Mr./NNP
Maughan/NNP
said/VBD
./.
``/``
The/DT
real/JJ
difference/NN
seems/VBZ
to/TO
be/VB
that/IN
the/DT
cash/NN
market/NN
here/RB
.../:
is/VBZ
big/JJ
enough/RB
and/CC
liquid/NN
enough/RB
that/IN
the/DT
futures/NNS
market/NN
is/VBZ
n't/RB
having/VBG
the/DT
same/JJ
impact/NN
it/PRP
does/VBZ
in/IN
America/NNP
./.
''/''
The/DT
British/NNP
also/RB
are/VBP
scrutinizing/VBG
program/NN
trades/NNS
./.
Index-arbitrage/NN
trading/NN
is/VBZ
``/``
something/NN
we/PRP
want/VBP
to/TO
watch/VB
closely/RB
,/,
''/''
an/DT
official/NN
at/IN
London/NNP
's/POS
Stock/NNP
Exchange/NNP
said/VBD
./.
``/``
We/PRP
do/VBP
n't/RB
think/VB
there/EX
is/VBZ
cause/NN
for/IN
concern/NN
at/IN
the/DT
moment/NN
./.
''/''
London/NNP
serves/VBZ
increasingly/RB
as/IN
a/DT
conduit/NN
for/IN
program/NN
trading/NN
of/IN
U.S./NNP
stocks/NNS
./.
Market/NN
professionals/NNS
said/VBD
London/NNP
has/VBZ
several/JJ
attractions/NNS
./.
First/JJ
,/,
the/DT
trading/NN
is/VBZ
done/VBN
over/IN
the/DT
counter/NN
and/CC
is/VBZ
n't/RB
reported/VBN
on/IN
either/CC
the/DT
U.S./NNP
or/CC
London/NNP
stock/NN
trading/NN
tapes/NNS
./.
Second/JJ
,/,
it/PRP
can/MD
be/VB
used/VBN
to/TO
unwind/VB
positions/NNS
before/IN
U.S./NNP
trading/NN
begins/VBZ
,/,
but/CC
at/IN
prices/NNS
pegged/VBN
to/TO
the/DT
previous/JJ
session/NN
's/POS
Big/NNP
Board/NNP
close/NN
./.
In/IN
addition/NN
to/TO
the/DT
extra/JJ
privacy/NN
of/IN
these/DT
trades/NNS
,/,
the/DT
transactions/NNS
can/MD
often/RB
be/VB
less/RBR
expensive/JJ
to/TO
execute/VB
,/,
because/IN
the/DT
parties/NNS
do/VBP
n't/RB
have/VB
to/TO
pay/VB
a/DT
floor/NN
brokerage/NN
fee/NN
or/CC
a/DT
specialist/NN
's/POS
fee/NN
./.
Still/RB
,/,
``/``
Much/RB
less/RBR
{/(
index-arbitrage/NN
activity/NN
the/DT
U.S./NNP
''/''
said/VBD
Richard/NNP
Barfield/NNP
,/,
chief/NN
investment/NN
manager/NN
at/IN
Standard/NNP
Life/NNP
Assurance/NNP
Co./NNP
,/,
which/WDT
manages/VBZ
about/IN
#/#
15/CD
billion/CD
$/$
23.72/CD
billion/CD
United/NNP
Kingdom/NNP
institutional/JJ
funds/NNS
./.
Britain/NNP
has/VBZ
two/CD
main/JJ
index-arbitrage/NN
instruments/NNS
./.
A/DT
Financial/NNP
Times-Stock/NNP
Exchange/NNP
100-share/JJ
index/NN
option/NN
contract/NN
is/VBZ
traded/VBN
on/IN
the/DT
London/NNP
Stock/NNP
Exchange/NNP
's/POS
Traded/NNP
Options/NNPS
Market/NNP
./.
And/CC
an/DT
FT-SE/NNP
futures/NNS
contract/NN
is/VBZ
traded/VBN
on/IN
the/DT
London/NNP
International/NNP
Financial/NNP
Futures/NNPS
Exchange/NNP
./.
Both/DT
contracts/NNS
have/VBP
gained/VBN
a/DT
following/NN
since/IN
the/DT
1987/CD
global/JJ
market/NN
crash/NN
./.
The/DT
average/JJ
number/NN
of/IN
FT-SE/NNP
option/NN
contracts/NNS
traded/VBN
on/IN
the/DT
London/NNP
exchange/NN
has/VBZ
surged/VBN
nearly/RB
tenfold/RB
since/IN
the/DT
contract/NN
's/POS
launch/NN
in/IN
1984/CD
./.
This/DT
year/NN
,/,
the/DT
average/NN
of/IN
daily/JJ
contracts/NNS
traded/VBN
totaled/VBD
9,118/CD
,/,
up/IN
from/IN
4,645/CD
a/DT
year/NN
earlier/JJR
and/CC
from/IN
917/CD
in/IN
1984/CD
./.
But/CC
a/DT
survey/NN
early/RB
this/DT
summer/NN
indicated/VBD
that/IN
the/DT
volume/NN
of/IN
index-options/NNS
trading/NN
was/VBD
only/RB
15/CD
%/NN
of/IN
the/DT
size/NN
of/IN
the/DT
underlying/VBG
equity/NN
market/NN
,/,
exchange/NN
officials/NNS
said/VBD
./.
This/DT
compares/VBZ
with/IN
estimates/NNS
that/IN
the/DT
U.S./NNP
``/``
derivatives/NNS
''/''
market/NN
is/VBZ
perhaps/RB
four/CD
times/NNS
as/RB
large/JJ
as/IN
the/DT
underlying/VBG
domestic/JJ
market/NN
./.
The/DT
House/NNP
voted/VBD
to/TO
boost/VB
the/DT
federal/JJ
minimum/JJ
wage/NN
for/IN
the/DT
first/JJ
time/NN
since/IN
early/JJ
1981/CD
,/,
casting/VBG
a/DT
solid/JJ
382-37/CD
vote/NN
for/IN
a/DT
compromise/NN
measure/NN
backed/VBN
by/IN
President/NNP
Bush/NNP
./.
The/DT
vote/NN
came/VBD
after/IN
a/DT
debate/NN
replete/JJ
with/IN
complaints/NNS
from/IN
both/DT
proponents/NNS
and/CC
critics/NNS
of/IN
a/DT
substantial/JJ
increase/NN
in/IN
the/DT
wage/NN
floor/NN
./.
Advocates/NNS
said/VBD
the/DT
90-cent-an-hour/JJ
rise/NN
,/,
to/TO
$/$
4.25/CD
an/DT
hour/NN
by/IN
April/NNP
1991/CD
,/,
is/VBZ
too/RB
small/JJ
for/IN
the/DT
working/VBG
poor/NN
,/,
while/IN
opponents/NNS
argued/VBD
that/IN
the/DT
increase/NN
will/MD
still/RB
hurt/VB
small/JJ
business/NN
and/CC
cost/VB
many/JJ
thousands/NNS
of/IN
jobs/NNS
./.
But/CC
the/DT
legislation/NN
reflected/VBD
a/DT
compromise/NN
agreed/VBN
to/TO
on/IN
Tuesday/NNP
by/IN
President/NNP
Bush/NNP
and/CC
Democratic/JJ
leaders/NNS
in/IN
Congress/NNP
,/,
after/IN
congressional/JJ
Republicans/NNPS
urged/VBD
the/DT
White/NNP
House/NNP
to/TO
bend/VB
a/DT
bit/NN
from/IN
its/PRP$
previous/JJ
resistance/NN
to/TO
compromise/VB
./.
So/IN
both/DT
sides/NNS
accepted/VBD
the/DT
compromise/NN
,/,
which/WDT
would/MD
lead/VB
to/TO
the/DT
first/JJ
lifting/NN
of/IN
the/DT
minimum/JJ
wage/NN
since/IN
a/DT
four-year/JJ
law/NN
was/VBD
enacted/VBN
in/IN
1977/CD
,/,
raising/VBG
the/DT
wage/NN
to/TO
$/$
3.35/CD
an/DT
hour/NN
from/IN
$/$
2.65/CD
./.
Under/IN
the/DT
measure/NN
passed/VBD
yesterday/NN
,/,
the/DT
minimum/JJ
wage/NN
would/MD
rise/VB
to/TO
$/$
3.80/CD
next/JJ
April/NNP
./.
The/DT
Senate/NNP
plans/VBZ
to/TO
take/VB
up/IN
the/DT
measure/NN
quickly/RB
and/CC
is/VBZ
expected/VBN
to/TO
pass/VB
it/PRP
./.
``/``
There/EX
are/VBP
no/DT
smiles/NNS
about/IN
this/DT
bill/NN
,/,
''/''
Rep./NNP
Pat/NNP
Williams/NNP
D./NNP
,/,
Mont/NNP
./.
House/NNP
floor/NN
debate/NN
yesterday/NN
./.
But/CC
``/``
because/IN
it/PRP
's/VBZ
all/DT
we/PRP
've/VBP
got/VBN
,/,
I/PRP
'm/VBP
going/VBG
to/TO
vote/VB
for/IN
it/PRP
./.
''/''
While/IN
the/DT
minimum/JJ
wage/NN
had/VBD
traditionally/RB
been/VBN
pegged/VBN
at/IN
half/PDT
the/DT
average/JJ
U.S./NNP
manufacturing/NN
wage/NN
,/,
the/DT
level/NN
of/IN
$/$
4.25/CD
an/DT
hour/NN
in/IN
1991/CD
will/MD
still/RB
be/VB
less/JJR
than/IN
35/CD
%/NN
of/IN
average/JJ
factory/NN
pay/NN
,/,
Mr./NNP
Williams/NNP
said/VBD
./.
But/CC
Rep./NNP
Marge/NNP
Roukema/NNP
R./NNP
,/,
N.J/NNP
./.
the/DT
House/NNP
's/POS
acceptance/NN
of/IN
a/DT
new/JJ
youth/NN
``/``
training/NN
''/''
wage/NN
,/,
a/DT
subminimum/NN
that/IN
GOP/NNP
administrations/NNS
have/VBP
sought/VBN
for/IN
many/JJ
years/NNS
./.
Adopting/VBG
a/DT
training-wage/JJ
policy/NN
means/VBZ
``/``
getting/VBG
beyond/IN
the/DT
nickel/NN
and/CC
diming/NN
of/IN
the/DT
minimum/JJ
wage/NN
,/,
''/''
Mrs./NNP
Roukema/NNP
said/VBD
./.
Policy/NN
makers/NNS
regard/VBP
the/DT
youth/NN
wage/NN
as/IN
helping/VBG
to/TO
limit/VB
the/DT
loss/NN
of/IN
jobs/NNS
from/IN
an/DT
increase/NN
in/IN
the/DT
minimum/JJ
wage/NN
,/,
but/CC
they/PRP
have/VBP
lately/RB
touted/VBN
it/PRP
as/RB
necessary/JJ
to/TO
help/VB
impart/VB
job/NN
skills/NNS
to/TO
entrants/NNS
into/IN
the/DT
work/NN
force/NN
./.
Labor/NN
unions/NNS
and/CC
Democrats/NNPS
long/RB
fought/VBD
the/DT
idea/NN
,/,
but/CC
recently/RB
acceded/VBD
to/TO
it/PRP
in/IN
the/DT
face/NN
of/IN
Bush/NNP
administration/NN
insistence/NN
./.
The/DT
compromise/NN
sets/VBZ
the/DT
training/NN
wage/NN
at/IN
$/$
3.35/CD
an/DT
hour/NN
next/IN
April/NNP
,/,
and/CC
at/IN
$/$
3.61/CD
an/DT
hour/NN
,/,
or/CC
85/CD
%/NN
of/IN
the/DT
minimum/JJ
wage/NN
,/,
in/IN
April/NNP
1991/CD
./.
Employers/NNS
can/MD
pay/VB
the/DT
subminimum/NN
for/IN
90/CD
days/NNS
,/,
without/IN
restriction/NN
,/,
to/TO
workers/NNS
with/IN
less/JJR
than/IN
six/CD
months/NNS
of/IN
job/NN
experience/NN
,/,
and/CC
for/IN
another/DT
90/CD
days/NNS
if/IN
the/DT
company/NN
uses/VBZ
a/DT
government-certified/JJ
training/NN
program/NN
for/IN
the/DT
young/JJ
workers/NNS
./.
The/DT
training/NN
wage/NN
covers/VBZ
only/JJ
workers/NNS
who/WP
are/VBP
16/CD
to/TO
19/CD
years/NNS
old/JJ
./.
The/DT
White/NNP
House/NNP
previously/RB
insisted/VBD
on/IN
an/DT
unrestricted/JJ
six-month/JJ
training/NN
wage/NN
that/WDT
could/MD
be/VB
paid/VBN
any/DT
time/NN
a/DT
worker/NN
of/IN
any/DT
age/NN
took/VBD
a/DT
new/JJ
job/NN
./.
The/DT
U.S./NNP
Chamber/NNP
of/IN
Commerce/NNP
,/,
still/RB
opposed/VBN
to/TO
any/DT
mininum-wage/NN
increase/NN
,/,
said/VBD
the/DT
compromise/NN
plan/NN
to/TO
lift/VB
the/DT
wage/NN
floor/NN
27/CD
%/NN
in/IN
two/CD
stages/NNS
between/IN
April/NNP
1990/CD
and/CC
April/NNP
1991/CD
``/``
will/MD
be/VB
impossible/JJ
for/IN
many/JJ
employers/NNS
to/TO
accommodate/VB
and/CC
will/MD
result/VB
in/IN
the/DT
elimination/NN
of/IN
jobs/NNS
for/IN
American/JJ
workers/NNS
and/CC
higher/JJR
prices/NNS
for/IN
American/JJ
consumers/NNS
./.
''/''
Zenith/NNP
Data/NNP
Systems/NNPS
Corp./NNP
,/,
a/DT
subsidiary/NN
of/IN
Zenith/NNP
Electronics/NNP
Corp./NNP
,/,
received/VBD
a/DT
$/$
534/CD
million/CD
Navy/NNP
contract/NN
for/IN
software/NN
and/CC
services/NNS
of/IN
microcomputers/NNS
over/IN
an/DT
84-month/JJ
period/NN
./.
Rockwell/NNP
International/NNP
Corp./NNP
won/VBD
a/DT
$/$
130.7/CD
million/CD
Air/NNP
Force/NNP
contract/NN
for/IN
AC-130U/NN
gunship/NN
replacement/NN
aircraft/NN
./.
Martin/NNP
Marietta/NNP
Corp./NNP
was/VBD
given/VBN
a/DT
$/$
29.9/CD
million/CD
Air/NNP
Force/NNP
contract/NN
for/IN
low-altitude/NN
navigation/NN
and/CC
targeting/VBG|NN
equipment/NN
./.
Federal/NNP
Data/NNP
Corp./NNP
got/VBD
a/DT
$/$
29.4/CD
million/CD
Air/NNP
Force/NNP
contract/NN
for/IN
intelligence/NN
data/NNS
handling/NN
./.
For/IN
six/CD
years/NNS
,/,
T./NNP
Marshall/NNP
Hahn/NNP
Jr./NNP
has/VBZ
made/VBN
corporate/JJ
acquisitions/NNS
in/IN
the/DT
George/NNP
Bush/NNP
mode/NN
:/:
kind/JJ
and/CC
gentle/JJ
./.
The/DT
question/NN
now/RB
:/:
Can/MD
he/PRP
act/VB
more/RBR
like/IN
hard-charging/JJ
Teddy/NNP
Roosevelt/NNP
?/.
Mr./NNP
Hahn/NNP
,/,
the/DT
62-year-old/JJ
chairman/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
Georgia-Pacific/NNP
Corp./NNP
is/VBZ
leading/VBG
the/DT
forest-product/NN
concern/NN
's/POS
unsolicited/JJ
$/$
3.19/CD
billion/CD
bid/NN
for/IN
Great/NNP
Northern/NNP
Nekoosa/NNP
Corp/NNP
./.
Nekoosa/NNP
has/VBZ
given/VBN
the/DT
offer/NN
a/DT
public/JJ
cold/JJ
shoulder/NN
,/,
a/DT
reaction/NN
Mr./NNP
Hahn/NNP
has/VBZ
n't/RB
faced/VBN
in/IN
his/PRP$
18/CD
earlier/JJR
acquisitions/NNS
,/,
all/DT
of/IN
which/WDT
were/VBD
negotiated/VBN
behind/IN
the/DT
scenes/NNS
./.
So/IN
far/RB
,/,
Mr./NNP
Hahn/NNP
is/VBZ
trying/VBG
to/TO
entice/VB
Nekoosa/NNP
into/IN
negotiating/VBG
a/DT
friendly/JJ
surrender/NN
while/IN
talking/VBG
tough/JJ
./.
``/``
We/PRP
are/VBP
prepared/VBN
to/TO
pursue/VB
aggressively/RB
completion/NN
of/IN
this/DT
transaction/NN
,/,
''/''
he/PRP
says/VBZ
./.
But/CC
a/DT
takeover/NN
battle/NN
opens/VBZ
up/RP
the/DT
possibility/NN
of/IN
a/DT
bidding/NN
war/NN
,/,
with/IN
all/DT
that/DT
implies/VBZ
./.
If/IN
a/DT
competitor/NN
enters/VBZ
the/DT
game/NN
,/,
for/IN
example/NN
,/,
Mr./NNP
Hahn/NNP
could/MD
face/VB
the/DT
dilemma/NN
of/IN
paying/VBG
a/DT
premium/NN
for/IN
Nekoosa/NNP
or/CC
seeing/VBG
the/DT
company/NN
fall/NN
into/IN
the/DT
arms/NNS
of/IN
a/DT
rival/NN
./.
Given/VBN
that/DT
choice/NN
,/,
associates/NNS
of/IN
Mr./NNP
Hahn/NNP
and/CC
industry/NN
observers/NNS
say/VBP
the/DT
former/JJ
university/NN
president/NN
--/:
who/WP
has/VBZ
developed/VBN
a/DT
reputation/NN
for/IN
not/RB
overpaying/VBG
for/IN
anything/NN
--/:
would/MD
fold/VB
./.
``/``
There/EX
's/VBZ
a/DT
price/NN
above/IN
which/WDT
I/PRP
'm/VBP
positive/JJ
Marshall/NNP
has/VBZ
the/DT
courage/NN
not/RB
to/TO
pay/VB
,/,
''/''
says/VBZ
A.D./NNP
Correll/NNP
,/,
Georgia-Pacific/NNP
's/POS
executive/JJ
vice/NN
president/NN
for/IN
pulp/NN
and/CC
paper/NN
./.
Says/VBZ
long-time/JJ
associate/NN
Jerry/NNP
Griffin/NNP
,/,
vice/NN
president/NN
,/,
corporate/JJ
development/NN
,/,
at/IN
WTD/NNP
Industries/NNPS
Inc./NNP
:/:
``/``
He/PRP
is/VBZ
n't/RB
of/IN
the/DT
old/JJ
school/NN
of/IN
winning/VBG
at/IN
any/DT
cost/NN
./.
''/''
He/PRP
also/RB
is/VBZ
a/DT
consensus/NN
manager/NN
,/,
insiders/NNS
say/VBP
./.
The/DT
decision/NN
to/TO
make/VB
the/DT
bid/NN
for/IN
Nekoosa/NNP
,/,
for/IN
example/NN
,/,
was/VBD
made/VBN
only/RB
after/IN
all/DT
six/CD
members/NNS
of/IN
Georgia-Pacific/NNP
's/POS
management/NN
committee/NN
signed/VBD
onto/IN
the/DT
deal/NN
--/:
even/RB
though/IN
Mr./NNP
Hahn/NNP
knew/VBD
he/PRP
wanted/VBD
to/TO
go/VB
after/IN
the/DT
company/NN
early/RB
on/IN
,/,
says/VBZ
Mr./NNP
Correll/NNP
./.
Associates/NNS
say/VBP
Mr./NNP
Hahn/NNP
picked/VBD
up/RP
that/DT
careful/JJ
approach/NN
to/TO
management/NN
as/IN
president/NN
of/IN
Virginia/NNP
Polytechnic/NNP
Institute/NNP
./.
Assuming/VBG
that/DT
post/NN
at/IN
the/DT
age/NN
of/IN
35/CD
,/,
he/PRP
managed/VBD
by/IN
consensus/NN
,/,
as/IN
is/VBZ
the/DT
rule/NN
in/IN
universities/NNS
,/,
says/VBZ
Warren/NNP
H./NNP
Strother/NNP
,/,
a/DT
university/NN
official/NN
who/WP
is/VBZ
researching/VBG
a/DT
book/NN
on/IN
Mr./NNP
Hahn/NNP
./.
But/CC
he/PRP
also/RB
showed/VBD
a/DT
willingness/NN
to/TO
take/VB
a/DT
strong/JJ
stand/NN
./.
In/IN
1970/CD
,/,
Mr./NNP
Hahn/NNP
called/VBD
in/IN
state/NN
police/NNS
to/TO
arrest/VB
student/NN
protesters/NNS
who/WP
were/VBD
occupying/VBG
a/DT
university/NN
building/NN
./.
That/DT
impressed/VBN
Robert/NNP
B./NNP
Pamplin/NNP
,/,
Georgia-Pacific/NNP
's/POS
chief/NN
executive/JJ
at/IN
the/DT
time/NN
,/,
whom/WP
Mr./NNP
Hahn/NNP
had/VBD
met/VBN
while/IN
fundraising/VBG
for/IN
the/DT
institute/NN
./.
In/IN
1975/CD
,/,
Mr./NNP
Pamplin/NNP
enticed/VBD
Mr./NNP
Hahn/NNP
into/IN
joining/VBG
the/DT
company/NN
as/IN
executive/JJ
vice/NN
president/NN
in/IN
charge/NN
of/IN
chemicals/NNS
;/:
the/DT
move/NN
befuddled/VBD
many/JJ
in/IN
Georgia-Pacific/NNP
who/WP
did/VBD
n't/RB
believe/VB
a/DT
university/NN
administrator/NN
could/MD
make/VB
the/DT
transition/NN
to/TO
the/DT
corporate/JJ
world/NN
./.
But/CC
Mr./NNP
Hahn/NNP
rose/VBD
swiftly/RB
through/IN
the/DT
ranks/NNS
,/,
demonstrating/VBG
a/DT
raw/JJ
intelligence/NN
that/IN
he/PRP
says/VBZ
he/PRP
knew/VBD
he/PRP
possessed/VBD
early/RB
on/IN
./.
The/DT
son/NN
of/IN
a/DT
physicist/NN
,/,
Mr./NNP
Hahn/NNP
skipped/VBD
first/JJ
grade/NN
because/IN
his/PRP$
reading/NN
ability/NN
was/VBD
so/RB
far/RB
above/IN
his/PRP$
classmates/NNS
./.
Moving/VBG
rapidly/RB
through/IN
school/NN
,/,
he/PRP
graduated/VBD
Phi/NNP
Beta/NNP
Kappa/NNP
from/IN
the/DT
University/NNP
of/IN
Kentucky/NNP
at/IN
age/NN
18/CD
,/,
after/IN
spending/VBG
only/RB
2/CD
1\/2/CD
years/NNS
in/IN
college/NN
./.
He/PRP
earned/VBD
his/PRP$
doctorate/NN
in/IN
nuclear/JJ
physics/NN
from/IN
the/DT
Massachusetts/NNP
Institute/NNP
of/IN
Technology/NNP
./.
Mr./NNP
Hahn/NNP
agrees/VBZ
that/IN
he/PRP
has/VBZ
a/DT
``/``
retentive/JJ
''/''
memory/NN
,/,
but/CC
friends/NNS
say/VBP
that/DT
's/VBZ
an/DT
understatement/NN
./.
They/PRP
call/VBP
it/PRP
``/``
photographic/JJ
''/''
./.
Mr./NNP
Hahn/NNP
also/RB
has/VBZ
engineered/VBN
a/DT
surprising/JJ
turnaround/NN
of/IN
Georgia-Pacific/NNP
./.
Taking/VBG
over/IN
as/RB
chief/NN
executive/JJ
officer/NN
in/IN
1983/CD
,/,
he/PRP
inherited/VBD
a/DT
company/NN
that/WDT
was/VBD
mired/VBN
in/IN
debt/NN
and/CC
hurt/VBN
by/IN
a/DT
recession-inspired/JJ
slide/NN
in/IN
its/PRP$
building-products/NNS
business/NN
./.
Mr./NNP
Hahn/NNP
began/VBD
selling/VBG
non-core/JJ
businesses/NNS
,/,
such/JJ
as/IN
oil/NN
and/CC
gas/NN
and/CC
chemicals/NNS
./.
He/PRP
even/RB
sold/VBD
one/CD
unit/NN
that/WDT
made/VBD
vinyl/NN
checkbook/NN
covers/NNS
./.
At/IN
the/DT
same/JJ
time/NN
,/,
he/PRP
began/VBD
building/VBG
up/RP
the/DT
pulp/NN
and/CC
paper/NN
segment/NN
of/IN
the/DT
company/NN
while/NN
refocusing/NN
building/NN
products/NNS
on/IN
home/NN
repair/NN
and/CC
remodeling/NN
,/,
rather/RB
than/IN
materials/NNS
for/IN
new-home/JJ
construction/NN
./.
The/DT
idea/NN
was/VBD
to/TO
buffet/VB
building/NN
products/NNS
from/IN
cycles/NNS
in/IN
new-home/JJ
construction/NN
./.
The/DT
formula/NN
has/VBZ
paid/VBN
off/IN
,/,
so/RB
far/RB
./.
Georgia-Pacific/NNP
's/POS
sales/NNS
climbed/VBD
to/TO
$/$
9.5/CD
billion/CD
last/JJ
year/NN
,/,
compared/VBN
with/IN
$/$
6/CD
billion/CD
in/IN
1983/CD
,/,
when/WRB
Mr./NNP
Hahn/NNP
took/VBD
the/DT
reins/NNS
./.
Profit/NN
from/IN
continuing/VBG
operations/NNS
has/VBZ
soared/VBN
to/TO
$/$
467/CD
million/CD
from/IN
$/$
75/CD
million/CD
./.
Mr./NNP
Hahn/NNP
attributes/VBZ
the/DT
gains/NNS
to/TO
the/DT
philosophy/NN
of/IN
concentrating/VBG
on/IN
what/WP
a/DT
company/NN
knows/VBZ
best/JJS
./.
``/``
The/DT
record/NN
of/IN
companies/NNS
that/WDT
have/VBP
diversified/VBN
is/VBZ
n't/RB
all/DT
that/DT
impressive/JJ
,/,
''/''
he/PRP
says/VBZ
./.
Nekoosa/NNP
would/MD
n't/RB
be/VB
a/DT
diversification/NN
./.
It/PRP
would/MD
be/VB
a/DT
good/JJ
match/NN
,/,
Mr./NNP
Hahn/NNP
and/CC
many/JJ
analysts/NNS
say/VBP
,/,
of/IN
two/CD
healthy/JJ
companies/NNS
with/IN
high-quality/JJ
assets/NNS
and/CC
strong/JJ
cash/NN
flows/VBZ
./.
The/DT
resulting/VBG
company/NN
would/MD
be/VB
the/DT
largest/JJS
forest-products/NNS
concern/NN
in/IN
the/DT
world/NN
with/IN
combined/VBN
sales/NNS
of/IN
more/JJR
than/IN
$/$
13/CD
billion/CD
./.
But/CC
can/MD
Mr./NNP
Hahn/NNP
carry/VB
it/PRP
off/IN
?/.
In/IN
this/DT
instance/NN
,/,
industry/NN
observers/NNS
say/VBP
,/,
he/PRP
is/VBZ
entering/VBG
uncharted/JJ
waters/NNS
./.
Says/VBZ
Kathryn/NNP
McAuley/NNP
,/,
an/DT
analyst/NN
at/IN
First/NNP
Manhattan/NNP
Co./NNP
:/:
``/``
This/DT
is/VBZ
the/DT
greatest/JJS
acquisition/NN
challenge/NN
he/PRP
has/VBZ
faced/VBN
./.
''/''
A/DT
House-Senate/NNP
conference/NN
approved/VBD
major/JJ
portions/NNS
of/IN
a/DT
package/NN
for/IN
more/JJR
than/IN
$/$
500/CD
million/CD
in/IN
economic/JJ
aid/NN
for/IN
Poland/NNP
that/WDT
relies/VBZ
heavily/RB
on/IN
$/$
240/CD
million/CD
in/IN
credit/NN
and/CC
loan/NN
guarantees/NNS
in/IN
fiscal/JJ
1990/CD
in/IN
hopes/NNS
of/IN
stimulating/VBG
future/JJ
trade/NN
and/CC
investment/NN
./.
For/IN
the/DT
Agency/NNP
for/IN
International/NNP
Development/NNP
,/,
appropriators/NNS
approved/VBD
$/$
200/CD
million/CD
in/IN
secondary/JJ
loan/NN
guarantees/NNS
under/IN
an/DT
expanded/VBN
trade/NN
credit/NN
insurance/NN
program/NN
,/,
and/CC
total/JJ
loan/NN
guarantees/NNS
for/IN
the/DT
Overseas/NNP
Private/NNP
Investment/NNP
Corp./NNP
are/VBP
increased/VBN
by/IN
$/$
40/CD
million/CD
over/IN
fiscal/JJ
1989/CD
as/IN
part/NN
of/IN
the/DT
same/JJ
Poland/NNP
package/NN
./.
The/DT
conference/NN
approved/VBD
at/IN
least/JJS
$/$
55/CD
million/CD
in/IN
direct/JJ
cash/NN
and/CC
development/NN
assistance/NN
as/IN
well/RB
,/,
and/CC
though/IN
no/DT
decision/NN
was/VBD
made/VBN
,/,
both/DT
sides/NNS
are/VBP
committed/VBN
to/TO
adding/VBG
more/JJR
than/IN
$/$
200/CD
million/CD
in/IN
economic/JJ
support/NN
funds/NNS
and/CC
environmental/JJ
initiatives/NNS
sought/VBN
by/IN
the/DT
Bush/NNP
administration/NN
./.
The/DT
agreement/NN
on/IN
Poland/NNP
contrasts/VBZ
with/IN
the/DT
major/JJ
differences/NNS
remaining/VBG
over/IN
the/DT
underlying/VBG
foreign/JJ
aid/NN
bill/NN
,/,
which/WDT
has/VBZ
already/RB
provoked/VBN
veto/NN
threats/NNS
by/IN
the/DT
White/NNP
House/NNP
and/CC
is/VBZ
sharply/RB
confined/VBN
under/IN
this/DT
year/NN
's/POS
budget/NN
./.
These/DT
fiscal/JJ
pressures/NNS
are/VBP
also/RB
a/DT
factor/NN
in/IN
shaping/VBG
the/DT
Poland/NNP
package/NN
,/,
and/CC
while/IN
more/RBR
ambitious/JJ
authorizing/VBG
legislation/NN
is/VBZ
still/RB
pending/VBG
,/,
the/DT
appropriations/NNS
bill/NN
in/IN
conference/NN
will/MD
be/VB
more/RBR
decisive/JJ
on/IN
U.S./NNP
aid/NN
to/TO
Eastern/NNP
Europe/NNP
./.
To/TO
accommodate/VB
the/DT
additional/JJ
cash/NN
assistance/NN
,/,
the/DT
House/NNP
Appropriations/NNPS
Committee/NNP
last/JJ
week/NN
was/VBD
required/VBN
to/TO
reallocate/VB
an/DT
estimated/VBN
$/$
140/CD
million/CD
from/IN
the/DT
Pentagon/NNP
./.
And/CC
though/IN
the/DT
size/NN
of/IN
the/DT
loan/NN
guarantees/NNS
approved/VBN
yesterday/NN
is/VBZ
significant/JJ
,/,
recent/JJ
experience/NN
with/IN
a/DT
similar/JJ
program/NN
in/IN
Central/NNP
America/NNP
indicates/VBZ
that/IN
it/PRP
could/MD
take/VB
several/JJ
years/NNS
before/IN
the/DT
new/JJ
Polish/JJ
government/NN
can/MD
fully/RB
use/VB
the/DT
aid/NN
effectively/RB
./.
The/DT
action/NN
on/IN
Poland/NNP
came/VBD
as/IN
the/DT
conference/NN
separately/RB
approved/VBD
$/$
220/CD
million/CD
for/IN
international/JJ
population/NN
planning/VBG
activities/NNS
,/,
an/DT
11/CD
%/NN
increase/NN
over/IN
fiscal/JJ
1989/CD
./.
The/DT
House/NNP
and/CC
Senate/NNP
are/VBP
divided/VBN
over/IN
whether/IN
the/DT
United/NNP
Nations/NNPS
Population/NNP
Fund/NNP
will/MD
receive/VB
any/DT
portion/NN
of/IN
these/DT
appropriations/NNS
,/,
but/CC
the/DT
size/NN
of/IN
the/DT
increase/NN
is/VBZ
itself/PRP
significant/JJ
./.
In/IN
a/DT
second/JJ
area/NN
of/IN
common/JJ
concern/NN
,/,
the/DT
world/NN
environment/NN
,/,
an/DT
additional/JJ
$/$
15/CD
million/CD
will/MD
be/VB
provided/VBN
in/IN
development/NN
assistance/NN
to/TO
fund/VB
a/DT
series/NN
of/IN
initiatives/NNS
,/,
related/VBN
both/DT
to/TO
global/JJ
warming/NN
and/CC
the/DT
plight/NN
of/IN
the/DT
African/JJ
elephant/NN
./.
The/DT
sweeping/JJ
nature/NN
of/IN
the/DT
bill/NN
draws/VBZ
a/DT
variety/NN
of/IN
special/JJ
interest/NN
amendments/NNS
,/,
running/VBG
from/IN
an/DT
import/NN
exemption/NN
for/IN
a/DT
California/NNP
airplane/NN
museum/NN
to/TO
a/DT
small/JJ
but/CC
intriguing/JJ
struggle/NN
among/IN
sugar/NN
producing/VBG
nations/NNS
over/IN
the/DT
fate/NN
of/IN
Panama/NNP
's/POS
quota/NN
of/IN
exports/NNS
to/TO
the/DT
profitable/JJ
U.S./NNP
market/NN
./.
Panama/NNP
was/VBD
stripped/VBN
of/IN
this/DT
right/NN
because/IN
of/IN
U.S./NNP
differences/NNS
with/IN
the/DT
Noriega/NNP
regime/NN
,/,
but/CC
the/DT
Central/NNP
American/NNP
country/NN
would/MD
have/VB
received/VBN
a/DT
quota/NN
of/IN
30,537/CD
metric/JJ
tons/NNS
over/IN
a/DT
21-month/JJ
period/NN
ending/VBG
Sept./NNP
30/CD
,/,
1990/CD
./.
About/IN
a/DT
quarter/NN
of/IN
this/DT
share/NN
has/VBZ
already/RB
been/VBN
reallocated/VBN
,/,
according/VBG
to/TO
the/DT
industry/NN
,/,
but/CC
the/DT
remaining/VBG
23,403/CD
tons/NNS
are/VBP
still/RB
a/DT
lucrative/JJ
target/NN
for/IN
growers/NNS
because/IN
the/DT
current/JJ
U.S./NNP
price/NN
of/IN
18/CD
cents/NNS
a/DT
pound/NN
runs/VBZ
as/RB
much/JJ
as/IN
a/DT
nickel/NN
a/DT
pound/NN
above/IN
the/DT
world/NN
rate/NN
./.
The/DT
potential/JJ
sales/NNS
are/VBP
nearly/RB
$/$
9.3/CD
million/CD
,/,
and/CC
House/NNP
Majority/NNP
Whip/NNP
William/NNP
Gray/NNP
D./NNP
,/,
Pa/NNP
./.
the/DT
bidding/NN
this/DT
year/NN
by/IN
proposing/VBG
language/NN
that/IN
the/DT
quota/NN
be/VB
allocated/VBN
to/TO
English-speaking/JJ
countries/NNS
of/IN
the/DT
Caribbean/NNP
,/,
such/JJ
as/IN
Jamaica/NNP
and/CC
Barbados/NNP
./.
Rep./NNP
Jerry/NNP
Lewis/NNP
,/,
a/DT
conservative/JJ
Californian/NN
,/,
added/VBD
a/DT
provision/NN
of/IN
his/PRP$
own/JJ
intended/VBN
to/TO
assist/VB
Bolivia/NNP
,/,
and/CC
the/DT
Senate/NNP
then/RB
broadened/VBD
the/DT
list/NN
further/RB
by/IN
including/VBG
all/DT
countries/NNS
in/IN
the/DT
U.S./NNP
Caribbean/NNP
Basin/NNP
initiate/NN
as/RB
well/RB
as/IN
the/DT
Philippines/NNP
-/:
backed/VBN
by/IN
the/DT
powerful/JJ
Hawaii/NNP
Democrat/NNP
Sen./NNP
Daniel/NNP
Inouye/NNP
./.
Jamaica/NNP
,/,
wary/JJ
of/IN
upsetting/VBG
its/PRP$
Caribbean/NNP
Basin/NNP
allies/NNS
,/,
has/VBZ
apparently/RB
instructed/VBN
its/PRP$
lobbyist/NN
to/TO
abandon/VB
the/DT
provision/NN
initially/RB
drafted/VBN
by/IN
Mr./NNP
Gray/NNP
,/,
but/CC
the/DT
greater/JJR
question/NN
is/VBZ
whether/IN
Mr./NNP
Inouye/NNP
,/,
who/WP
has/VBZ
strong/JJ
ties/NNS
to/TO
the/DT
sugar/NN
industry/NN
,/,
is/VBZ
able/JJ
to/TO
insert/VB
a/DT
claim/NN
by/IN
the/DT
Philippines/NNPS
./.
In/IN
separate/JJ
floor/NN
action/NN
,/,
the/DT
House/NNP
waived/VBD
budget/NN
restrictions/NNS
and/CC
gave/VBD
quick/JJ
approval/NN
to/TO
$/$
3.18/CD
billion/CD
in/IN
supplemental/JJ
appropriations/NNS
for/IN
law/NN
enforcement/NN
and/CC
anti-drug/JJ
programs/NNS
in/IN
fiscal/JJ
1990/CD
./.
The/DT
funding/NN
is/VBZ
attached/VBN
to/TO
an/DT
estimated/VBN
$/$
27.1/CD
billion/CD
transportation/NN
bill/NN
that/WDT
goes/VBZ
next/JJ
to/TO
the/DT
Senate/NNP
and/CC
carries/VBZ
with/IN
it/PRP
a/DT
proposed/VBN
permanent/JJ
smoking/NN
ban/NN
on/IN
virtually/RB
all/DT
U.S./NNP
domestic/JJ
airline/NN
flights/NNS
./.
The/DT
leadership/NN
hopes/VBZ
to/TO
move/VB
the/DT
compromise/NN
measure/NN
promptly/RB
to/TO
the/DT
White/NNP
House/NNP
,/,
but/CC
in/IN
recent/JJ
days/NNS
,/,
the/DT
Senate/NNP
has/VBZ
been/VBN
as/RB
likely/JJ
to/TO
bounce/VB
bills/NNS
back/RB
to/TO
the/DT
House/NNP
./.
The/DT
most/RBS
recent/JJ
example/NN
was/VBD
a/DT
nearly/RB
$/$
17.3/CD
billion/CD
fiscal/JJ
1990/CD
bill/NN
funding/VBG
the/DT
State/NNP
,/,
Justice/NNP
and/CC
Commerce/NNP
departments/NNS
./.
And/CC
after/IN
losing/VBG
a/DT
battle/NN
Tuesday/NNP
night/NN
with/IN
the/DT
Senate/NNP
Foreign/NNP
Relations/NNP
Committee/NNP
,/,
appropriators/NNS
from/IN
both/DT
houses/NNS
are/VBP
expected/VBN
to/TO
be/VB
forced/VBN
back/RB
to/TO
conference/NN
./.
Beauty/NN
Takes/VBZ
Backseat/NN
To/TO
Safety/NNP
on/IN
Bridges/NNPS
EVERYONE/NN
AGREES/VBZ
that/IN
most/JJS
of/IN
the/DT
nation/NN
's/POS
old/JJ
bridges/NNS
need/VBP
to/TO
be/VB
repaired/VBN
or/CC
replaced/VBN
./.
But/CC
there/EX
's/VBZ
disagreement/NN
over/IN
how/WRB
to/TO
do/VB
it/PRP
./.
Highway/NN
officials/NNS
insist/VBP
the/DT
ornamental/JJ
railings/NNS
on/IN
older/JJR
bridges/NNS
are/VBP
n't/RB
strong/JJ
enough/RB
to/TO
prevent/VB
vehicles/NNS
from/IN
crashing/VBG
through/IN
./.
But/CC
other/JJ
people/NNS
do/VBP
n't/RB
want/VB
to/TO
lose/VB
the/DT
bridges/NNS
'/POS
beautiful/JJ
,/,
sometimes/RB
historic/JJ
,/,
features/NNS
./.
``/``
The/DT
primary/JJ
purpose/NN
of/IN
a/DT
railing/NN
is/VBZ
to/TO
contain/VB
a/DT
vehicle/NN
and/CC
not/RB
to/TO
provide/VB
a/DT
scenic/JJ
view/NN
,/,
''/''
says/VBZ
Jack/NNP
White/NNP
,/,
a/DT
planner/NN
with/IN
the/DT
Indiana/NNP
Highway/NNP
Department/NNP
./.
He/PRP
and/CC
others/NNS
prefer/VBP
to/TO
install/VB
railings/NNS
such/JJ
as/IN
the/DT
``/``
type/NN
F/NN
safety/NN
shape/NN
,/,
''/''
a/DT
four-foot-high/JJ
concrete/JJ
slab/NN
with/IN
no/DT
openings/NNS
./.
In/IN
Richmond/NNP
,/,
Ind./NNP
,/,
the/DT
type/NN
F/NN
railing/NN
is/VBZ
being/VBG
used/VBN
to/TO
replace/VB
arched/JJ
openings/NNS
on/IN
the/DT
G/NNP
Street/NNP
Bridge/NNP
./.
Garret/NNP
Boone/NNP
,/,
who/WP
teaches/VBZ
art/NN
at/IN
Earlham/NNP
College/NNP
,/,
calls/VBZ
the/DT
new/JJ
structure/NN
``/``
just/RB
an/DT
ugly/JJ
bridge/NN
''/''
and/CC
one/CD
that/WDT
blocks/VBZ
the/DT
view/NN
of/IN
a/DT
new/JJ
park/NN
below/IN
./.
In/IN
Hartford/NNP
,/,
Conn./NNP
,/,
the/DT
Charter/NNP
Oak/NNP
Bridge/NNP
will/MD
soon/RB
be/VB
replaced/VBN
,/,
the/DT
cast-iron/JJ
medallions/NNS
from/IN
its/PRP$
railings/NNS
relegated/VBN
to/TO
a/DT
park/NN
./.
Compromises/NNS
are/VBP
possible/JJ
./.
Citizens/NNS
in/IN
Peninsula/NNP
,/,
Ohio/NNP
,/,
upset/VBN
over/IN
changes/NNS
to/TO
a/DT
bridge/NN
,/,
negotiated/VBD
a/DT
deal/NN
:/:
The/DT
bottom/NN
half/NN
of/IN
the/DT
railing/NN
will/MD
be/VB
type/NN
F/NN
,/,
while/IN
the/DT
top/JJ
half/NN
will/MD
have/VB
the/DT
old/JJ
bridge/NN
's/POS
floral/JJ
pattern/NN
./.
Similarly/RB
,/,
highway/NN
engineers/NNS
agreed/VBD
to/TO
keep/VB
the/DT
old/JJ
railings/NNS
on/IN
the/DT
Key/NNP
Bridge/NNP
in/IN
Washington/NNP
,/,
D.C./NNP
,/,
as/RB
long/RB
as/IN
they/PRP
could/MD
install/VB
a/DT
crash/JJ
barrier/NN
between/IN
the/DT
sidewalk/NN
and/CC
the/DT
road/NN
./.
Tray/NNP
Bon/NNP
?/.
Drink/NN
Carrier/NN
Competes/VBZ
With/IN
Cartons/NNS
PORTING/VBG
POTABLES/NNS
just/RB
got/VBD
easier/JJR
,/,
or/CC
so/RB
claims/VBZ
Scypher/NNP
Corp./NNP
,/,
the/DT
maker/NN
of/IN
the/DT
Cup-Tote/NNP
./.
The/DT
Chicago/NNP
company/NN
's/POS
beverage/NN
carrier/NN
,/,
meant/VBD
to/TO
replace/VB
cardboard/NN
trays/NNS
at/IN
concession/NN
stands/NNS
and/CC
fast-food/NN
outlets/NNS
,/,
resembles/VBZ
the/DT
plastic/JJ
loops/NNS
used/VBN
on/IN
six-packs/NNS
of/IN
beer/NN
,/,
only/RB
the/DT
loops/NNS
hang/VBP
from/IN
a/DT
web/NN
of/IN
strings/NNS
./.
The/DT
new/JJ
carrier/NN
can/MD
tote/VB
as/RB
many/JJ
as/IN
four/CD
cups/NNS
at/IN
once/RB
./.
Inventor/NNP
Claire/NNP
Marvin/NNP
says/VBZ
his/PRP$
design/NN
virtually/RB
eliminates/VBZ
spilling/NN
./.
Lids/NNS
are/VBP
n't/RB
even/RB
needed/VBN
./.
He/PRP
also/RB
claims/VBZ
the/DT
carrier/NN
costs/VBZ
less/JJR
and/CC
takes/VBZ
up/IN
less/JJR
space/NN
than/IN
most/JJS
paper/NN
carriers/NNS
./.
A/DT
few/JJ
fast-food/NN
outlets/NNS
are/VBP
giving/VBG
it/PRP
a/DT
try/NN
./.
The/DT
company/NN
acknowledges/VBZ
some/DT
problems/NNS
./.
A/DT
driver/NN
has/VBZ
to/TO
find/VB
something/NN
to/TO
hang/VB
the/DT
carrier/NN
on/IN
,/,
so/IN
the/DT
company/NN
supplies/VBZ
a/DT
window/NN
hook/NN
./.
While/IN
it/PRP
breaks/VBZ
down/IN
in/IN
prolonged/VBN
sunlight/NN
,/,
it/PRP
is/VBZ
n't/RB
recyclable/JJ
./.
And/CC
unlike/IN
some/DT
trays/NNS
,/,
there/EX
's/VBZ
no/DT
place/NN
for/IN
food/NN
./.
Spirit/NN
of/IN
Perestroika/FW
Touches/VBZ
Design/NN
World/NN
AN/DT
EXCHANGE/NN
of/IN
U.S./NNP
and/CC
Soviet/JJ
designers/NNS
promises/VBZ
change/NN
on/IN
both/DT
sides/NNS
./.
An/DT
exhibition/NN
of/IN
American/JJ
design/NN
and/CC
architecture/NN
opened/VBD
in/IN
September/NNP
in/IN
Moscow/NNP
and/CC
will/MD
travel/VB
to/TO
eight/CD
other/JJ
Soviet/JJ
cities/NNS
./.
The/DT
show/NN
runs/VBZ
the/DT
gamut/NN
,/,
from/IN
a/DT
blender/NN
to/TO
chairs/NNS
to/TO
a/DT
model/NN
of/IN
the/DT
Citicorp/NNP
building/NN
./.
The/DT
event/NN
continues/VBZ
into/IN
next/JJ
year/NN
and/CC
includes/VBZ
an/DT
exchange/NN
program/NN
to/TO
swap/VB
design/NN
teachers/NNS
at/IN
Carnegie-Mellon/NNP
and/CC
Leningrad/NNP
's/POS
Mutchin/NNP
Institute/NNP
./.
Dan/NNP
Droz/NNP
,/,
leader/NN
of/IN
the/DT
Carnegie-Mellon/NNP
group/NN
,/,
sees/VBZ
benefits/NNS
all/DT
around/IN
./.
The/DT
Soviets/NNPS
,/,
who/WP
normally/RB
have/VBP
few/JJ
clients/NNS
other/JJ
than/IN
the/DT
state/NN
,/,
will/MD
get/VB
``/``
exposure/NN
to/TO
a/DT
market/NN
system/NN
,/,
''/''
he/PRP
says/VBZ
./.
Americans/NNPS
will/MD
learn/VB
more/RBR
about/IN
making/VBG
products/NNS
for/IN
the/DT
Soviets/NNPS
./.
Mr./NNP
Droz/NNP
says/VBZ
the/DT
Soviets/NNPS
could/MD
even/RB
help/VB
U.S./NNP
designers/NNS
renew/VB
their/PRP$
sense/NN
of/IN
purpose/NN
./.
``/``
In/IN
Moscow/NNP
,/,
they/PRP
kept/VBD
asking/VBG
us/PRP
things/NNS
like/IN
,/,
`/``
Why/WRB
do/VBP
you/PRP
make/VB
15/CD
different/JJ
corkscrews/NNS
,/,
when/WRB
all/DT
you/PRP
need/VBP
is/VBZ
one/CD
good/JJ
one/CD
?/.
'/''
''/''
he/PRP
says/VBZ
./.
``/``
They/PRP
got/VBD
us/PRP
thinking/VBG
maybe/RB
we/PRP
should/MD
be/VB
helping/VBG
U.S./NNP
companies/NNS
improve/VB
existing/VBG
products/NNS
rather/RB
than/IN
always/RB
developing/VBG
new/JJ
ones/NNS
./.
''/''
Seed/NN
for/IN
Jail/NN
Solution/NN
Fails/VBZ
to/TO
Take/VB
Root/NN
IT/PRP
'S/VBZ
A/DT
TWO/CD
BIRDS/NNS
with/IN
one/CD
stone/NN
deal/NN
:/:
Eggers/NNP
Group/NNP
architects/NNS
propose/VBP
using/VBG
grain/NN
elevators/NNS
to/TO
house/VB
prisoners/NNS
./.
It/PRP
would/MD
ease/VB
jail/NN
overcrowding/NN
while/IN
preserving/VBG
historic/JJ
structures/NNS
,/,
the/DT
company/NN
says/VBZ
./.
But/CC
New/NNP
York/NNP
state/NN
,/,
which/WDT
is/VBZ
seeking/VBG
solutions/NNS
to/TO
its/PRP$
prison/NN
cell/NN
shortage/NN
,/,
says/VBZ
``/``
no/UH
./.
''/''
Grain/NN
elevators/NNS
built/VBN
in/IN
the/DT
1920s/CD
and/CC
'30s/CD
have/VBP
six-inch/JJ
concrete/JJ
walls/NNS
and/CC
a/DT
tubular/JJ
shape/NN
that/WDT
would/MD
easily/RB
contain/VB
semicircular/JJ
cells/NNS
with/IN
a/DT
control/NN
point/NN
in/IN
the/DT
middle/NN
,/,
the/DT
New/NNP
York/NNP
firm/NN
says/VBZ
./.
Many/JJ
are/VBP
far/RB
enough/RB
from/IN
residential/JJ
areas/NNS
to/TO
pass/VB
public/JJ
muster/NN
,/,
yet/CC
close/RB
enough/RB
to/TO
permit/VB
family/NN
visits/NNS
./.
Besides/IN
,/,
Eggers/NNP
says/VBZ
,/,
grain/NN
elevators/NNS
are/VBP
worth/IN
preserving/VBG
for/IN
aesthetic/JJ
reasons/NNS
--/:
one/CD
famed/JJ
architect/NN
compared/VBD
them/PRP
to/TO
the/DT
pyramids/NNS
of/IN
Egypt/NNP
./.
A/DT
number/NN
of/IN
cities/NNS
--/:
including/VBG
Minneapolis/NNP
,/,
Philadelphia/NNP
and/CC
Houston/NNP
--/:
have/VBP
vacant/JJ
grain/NN
elevators/NNS
,/,
Eggers/NNP
says/VBZ
./.
A/DT
medium-sized/JJ
one/CD
in/IN
Brooklyn/NNP
,/,
it/PRP
says/VBZ
,/,
could/MD
be/VB
altered/VBN
to/TO
house/VB
up/IN
to/TO
1,000/CD
inmates/NNS
at/IN
a/DT
lower/JJR
cost/NN
than/IN
building/VBG
a/DT
new/JJ
prison/NN
in/IN
upstate/JJ
New/NNP
York/NNP
./.
A/DT
spokesman/NN
for/IN
the/DT
state/NN
,/,
however/RB
,/,
calls/VBZ
the/DT
idea/NN
``/``
not/RB
effective/JJ
or/CC
cost/NN
efficient/JJ
./.
''/''
The/DT
Labor/NNP
Department/NNP
cited/VBD
USX/NNP
Corp./NNP
for/IN
numerous/JJ
health/NN
and/CC
safety/NN
violations/NNS
at/IN
two/CD
Pennsylvania/NNP
plants/NNS
,/,
and/CC
proposed/VBD
$/$
7.3/CD
million/CD
in/IN
fines/NNS
,/,
the/DT
largest/JJS
penalty/NN
ever/RB
proposed/VBN
for/IN
alleged/VBN
workplace/NN
violations/NNS
by/IN
an/DT
employer/NN
./.
The/DT
department/NN
's/POS
Occupational/NNP
Safety/NNP
and/CC
Health/NNP
Administration/NNP
proposed/VBD
fines/NNS
of/IN
$/$
6.1/CD
million/CD
for/IN
alleged/VBN
violations/NNS
at/IN
the/DT
company/NN
's/POS
Fairless/NNP
Hills/NNP
,/,
Pa./NNP
,/,
steel/NN
mill/NN
;/:
that/DT
was/VBD
a/DT
record/NN
for/IN
proposed/VBN
penalties/NNS
at/IN
any/DT
single/JJ
facility/NN
./.
OSHA/NNP
cited/VBD
nearly/RB
1,500/CD
alleged/VBN
violations/NNS
of/IN
federal/JJ
electrical/JJ
,/,
crane-safety/NN
,/,
record-keeping/NN
and/CC
other/JJ
requirements/NNS
./.
A/DT
second/JJ
citation/NN
covering/VBG
the/DT
company/NN
's/POS
Clairton/NNP
,/,
Pa./NNP
,/,
coke/NN
works/NNS
involved/VBD
more/JJR
than/IN
200/CD
alleged/VBN
violations/NNS
of/IN
electrical-safety/JJ
and/CC
other/JJ
requirements/NNS
,/,
for/IN
which/WDT
OSHA/NNP
proposed/VBD
$/$
1.2/CD
million/CD
in/IN
fines/NNS
./.
Labor/NNP
Secretary/NNP
Elizabeth/NNP
Dole/NNP
said/VBD
,/,
``/``
The/DT
magnitude/NN
of/IN
these/DT
penalties/NNS
and/CC
citations/NNS
is/VBZ
matched/VBN
only/RB
by/IN
the/DT
magnitude/NN
of/IN
the/DT
hazards/NNS
to/TO
workers/NNS
which/WDT
resulted/VBD
from/IN
corporate/JJ
indifference/NN
to/TO
worker/NN
safety/NN
and/CC
health/NN
,/,
and/CC
severe/JJ
cutbacks/NNS
in/IN
the/DT
maintenance/NN
and/CC
repair/NN
programs/NNS
needed/VBN
to/TO
remove/VB
those/DT
hazards/NNS
./.
''/''
OSHA/NNP
said/VBD
there/EX
have/VBP
been/VBN
three/CD
worker/NN
fatalities/NNS
at/IN
the/DT
two/CD
plants/NNS
in/IN
the/DT
past/JJ
two/CD
years/NNS
and/CC
17/CD
deaths/NNS
since/IN
1972/CD
./.
Gerard/NNP
Scannell/NNP
,/,
the/DT
head/NN
of/IN
OSHA/NNP
,/,
said/VBD
USX/NNP
managers/NNS
have/VBP
known/VBN
about/IN
many/JJ
of/IN
the/DT
safety/NN
and/CC
health/NN
deficiencies/NNS
at/IN
the/DT
plants/NNS
for/IN
years/NNS
,/,
``/``
yet/RB
have/VBP
failed/VBN
to/TO
take/VB
necessary/JJ
action/NN
to/TO
counteract/VB
the/DT
hazards/NNS
./.
''/''
``/``
Particularly/RB
flagrant/JJ
,/,
''/''
Mrs./NNP
Dole/NNP
said/VBD
,/,
``/``
are/VBP
the/DT
company/NN
's/POS
numerous/JJ
failures/NNS
to/TO
properly/RB
record/VB
injuries/NNS
at/IN
its/PRP$
Fairless/NNP
works/NNS
,/,
in/IN
spite/NN
of/IN
the/DT
firm/JJ
promise/NN
it/PRP
had/VBD
made/VBN
in/IN
an/DT
earlier/JJR
corporate-wide/JJ
settlement/NN
agreement/NN
to/TO
correct/VB
such/JJ
discrepancies/NNS
./.
''/''
That/DT
settlement/NN
was/VBD
in/IN
April/NNP
1987/CD
./.
A/DT
USX/NNP
spokesman/NN
said/VBD
the/DT
company/NN
had/VBD
n't/RB
yet/RB
received/VBN
any/DT
documents/NNS
from/IN
OSHA/NNP
regarding/VBG
the/DT
penalty/NN
or/CC
fine/NN
./.
``/``
Once/IN
we/PRP
do/VBP
,/,
they/PRP
will/MD
receive/VB
very/RB
serious/JJ
evaluation/NN
,/,
''/''
the/DT
spokesman/NN
said/VBD
./.
``/``
No/DT
consideration/NN
is/VBZ
more/RBR
important/JJ
than/IN
the/DT
health/NN
and/CC
safety/NN
of/IN
our/PRP$
employees/NNS
./.
''/''
USX/NNP
said/VBD
it/PRP
has/VBZ
been/VBN
cooperating/VBG
with/IN
OSHA/NNP
since/IN
the/DT
agency/NN
began/VBD
investigating/VBG
the/DT
Clairton/NNP
and/CC
Fairless/NNP
works/NNS
./.
He/PRP
said/VBD
that/IN
,/,
if/IN
and/CC
when/WRB
safety/NN
problems/NNS
were/VBD
identified/VBN
,/,
they/PRP
were/VBD
corrected/VBN
./.
The/DT
USX/NNP
citations/NNS
represented/VBD
the/DT
first/JJ
sizable/JJ
enforcement/NN
action/NN
taken/VBN
by/IN
OSHA/NNP
under/IN
Mr./NNP
Scannell/NNP
./.
He/PRP
has/VBZ
promised/VBN
stiffer/JJR
fines/NNS
,/,
though/IN
the/DT
size/NN
of/IN
penalties/NNS
sought/VBN
by/IN
OSHA/NNP
have/VBP
been/VBN
rising/VBG
in/IN
recent/JJ
years/NNS
even/RB
before/IN
he/PRP
took/VBD
office/NN
this/DT
year/NN
./.
``/``
The/DT
big/JJ
problem/NN
is/VBZ
that/IN
USX/NNP
management/NN
has/VBZ
proved/VBN
unwilling/JJ
to/TO
devote/VB
the/DT
necessary/JJ
resources/NNS
and/CC
manpower/NN
to/TO
removing/VBG
hazards/NNS
and/CC
to/TO
safeguarding/VBG
safety/NN
and/CC
health/NN
in/IN
the/DT
plants/NNS
,/,
''/''
said/VBD
Linda/NNP
Anku/NNP
,/,
OSHA/NNP
regional/JJ
administrator/NN
in/IN
Philadelphia/NNP
./.
USX/NNP
has/VBZ
15/CD
working/NN
days/NNS
to/TO
contest/VB
the/DT
citations/NNS
and/CC
proposed/VBN
penalties/NNS
,/,
before/IN
the/DT
independent/JJ
Occupational/NNP
Safety/NNP
and/CC
Health/NNP
Review/NNP
Commission/NNP
./.
Before/IN
the/DT
USX/NNP
case/NN
,/,
OSHA/NNP
's/POS
largest/JJS
proposed/VBN
fine/NN
for/IN
one/CD
employer/NN
was/VBD
$/$
4.3/CD
million/CD
for/IN
alleged/VBN
safety/NN
violations/NNS
at/IN
John/NNP
Morrell/NNP
&/CC
Co./NNP
,/,
a/DT
meatpacking/NN
subsidiary/NN
of/IN
United/NNP
Brands/NNP
Co./NNP
,/,
Cincinnati/NNP
./.
The/DT
company/NN
is/VBZ
contesting/VBG
the/DT
fine/NN
./.
Due/JJ
to/TO
an/DT
editing/NN
error/NN
,/,
a/DT
letter/NN
to/TO
the/DT
editor/NN
in/IN
yesterday/NN
's/POS
edition/NN
from/IN
Frederick/NNP
H./NNP
Hallett/NNP
mistakenly/RB
identified/VBD
the/DT
NRDC/NNP
./.
It/PRP
should/MD
be/VB
the/DT
Natural/NNP
Resources/NNPS
Defense/NNP
Council/NNP
./.
Letters/NNS
to/TO
the/DT
Editor/NN
:/:
Ozone/NN
Dangers/NNS
Are/VBP
n't/RB
Up/IN
in/IN
the/DT
Air/NN
''/''
--/:
WSJ/NNP
Nov./NNP
1/CD
,/,
1989/CD
)/)
Your/PRP$
Oct./NNP
6/CD
editorial/NN
``/``
The/NNP
Ill/NNP
Homeless/NNP
''/''
referred/VBD
to/TO
research/NN
by/IN
us/PRP
and/CC
six/CD
of/IN
our/PRP$
colleagues/NNS
that/WDT
was/VBD
reported/VBN
in/IN
the/DT
Sept./NNP
8/CD
issue/NN
of/IN
the/DT
Journal/NNP
of/IN
the/DT
American/NNP
Medical/NNP
Association/NNP
./.
Your/PRP$
comments/NNS
implied/VBD
we/PRP
had/VBD
discovered/VBN
that/IN
the/DT
``/``
principal/JJ
cause/NN
''/''
of/IN
homelessness/NN
is/VBZ
to/TO
be/VB
found/VBN
in/IN
the/DT
large/JJ
numbers/NNS
of/IN
mentally/RB
ill/JJ
and/CC
substance-abusing/JJ
people/NNS
in/IN
the/DT
homeless/JJ
population/NN
./.
We/PRP
have/VBP
made/VBN
no/DT
such/JJ
statement/NN
./.
It/PRP
is/VBZ
clear/JJ
that/IN
most/JJS
mentally/RB
ill/JJ
people/NNS
and/CC
most/JJS
alcoholics/NNS
do/VBP
not/RB
become/VB
homeless/JJ
./.
The/DT
``/``
causes/NNS
''/''
of/IN
homelessness/NN
are/VBP
poorly/RB
understood/VBN
and/CC
complex/JJ
in/IN
any/DT
individual/JJ
case/NN
./.
In/IN
quoting/VBG
from/IN
our/PRP$
research/NN
you/PRP
emphasized/VBD
the/DT
high/JJ
prevalance/NN
of/IN
mental/JJ
illness/NN
and/CC
alcoholism/NN
./.
You/PRP
did/VBD
not/RB
note/VB
that/IN
the/DT
homeless/JJ
people/NNS
we/PRP
examined/VBD
had/VBD
a/DT
multitude/NN
of/IN
physical/JJ
disorders/NNS
in/IN
addition/NN
to/TO
their/PRP$
psychiatric/JJ
problems/NNS
and/CC
substance/NN
abuse/NN
./.
They/PRP
suffered/VBD
from/IN
malnutrition/NN
,/,
chest/NN
diseases/NNS
,/,
cardiovascular/JJ
disorders/NNS
,/,
skin/NN
problems/NNS
,/,
infectious/JJ
diseases/NNS
and/CC
the/DT
aftereffects/NNS
of/IN
assaults/NNS
and/CC
rape/NN
./.
Homeless/JJ
people/NNS
not/RB
only/JJ
lack/VBP
safety/NN
,/,
privacy/NN
and/CC
shelter/NN
,/,
they/PRP
also/RB
lack/VBP
the/DT
elementary/JJ
necessities/NNS
of/IN
nutrition/NN
,/,
cleanliness/NN
and/CC
basic/JJ
health/NN
care/NN
./.
In/IN
a/DT
recent/JJ
report/NN
,/,
the/DT
Institute/NNP
of/IN
Medicine/NNP
pointed/VBD
out/RP
that/IN
certain/JJ
health/NN
problems/NNS
may/MD
predispose/VB
a/DT
person/NN
to/TO
homelessness/NN
,/,
others/NNS
may/MD
be/VB
a/DT
consequence/NN
of/IN
it/PRP
,/,
and/CC
a/DT
third/JJ
category/NN
is/VBZ
composed/VBN
of/IN
disorders/NNS
whose/WP$
treatment/NN
is/VBZ
difficult/JJ
or/CC
impossible/JJ
if/IN
a/DT
person/NN
lacks/VBZ
adequate/JJ
shelter/NN
./.
The/DT
interactions/NNS
between/IN
health/NN
and/CC
homelessness/NN
are/VBP
complex/JJ
,/,
defying/VBG
sweeping/JJ
generalizations/NNS
as/IN
to/TO
``/``
cause/NN
''/''
or/CC
``/``
effect/NN
./.
''/''
If/IN
we/PRP
look/VBP
to/TO
the/DT
future/NN
,/,
preventing/VBG
homelessness/NN
is/VBZ
an/DT
important/JJ
objective/NN
./.
This/DT
will/MD
require/VB
us/PRP
to/TO
develop/VB
a/DT
much/RB
more/RBR
sophisticated/JJ
understanding/NN
of/IN
the/DT
dynamics/NNS
of/IN
homelessness/NN
than/IN
we/PRP
currently/RB
possess/VBP
,/,
an/DT
understanding/NN
that/WDT
can/MD
be/VB
developed/VBN
only/RB
through/IN
careful/JJ
study/NN
and/CC
research/NN
./.
William/NNP
R./NNP
Breakey/NNP
M.D./NNP
Pamela/NNP
J./NNP
Fischer/NNP
M.D./NNP
Department/NNP
of/IN
Psychiatry/NNP
Johns/NNP
Hopkins/NNP
University/NNP
School/NNP
of/IN
Medicine/NNP
Baltimore/NNP
A/DT
study/NN
by/IN
Tulane/NNP
Prof./NNP
James/NNP
Wright/NNP
says/VBZ
homelessness/NN
is/VBZ
due/JJ
to/TO
a/DT
complex/JJ
array/NN
of/IN
problems/NNS
,/,
with/IN
the/DT
common/JJ
thread/NN
of/IN
poverty/NN
./.
The/DT
study/NN
shows/VBZ
that/IN
nearly/RB
40/CD
%/NN
of/IN
the/DT
homeless/JJ
population/NN
is/VBZ
made/VBN
up/RP
of/IN
women/NNS
and/CC
children/NNS
and/CC
that/IN
only/RB
25/CD
%/NN
of/IN
the/DT
homeless/NN
exhibits/VBZ
some/DT
combination/NN
of/IN
drug/NN
,/,
alcohol/NN
and/CC
mental/JJ
problems/NNS
./.
According/VBG
to/TO
Dr./NNP
Wright/NNP
,/,
homelessness/NN
is/VBZ
``/``
simultaneously/RB
a/DT
housing/NN
problem/NN
,/,
an/DT
employment/NN
problem/NN
,/,
a/DT
demographic/JJ
problem/NN
,/,
a/DT
problem/NN
of/IN
social/JJ
disaffiliation/NN
,/,
a/DT
mental/JJ
health/NN
problem/NN
,/,
a/DT
family/NN
violence/NN
problem/NN
,/,
a/DT
problem/NN
created/VBN
by/IN
the/DT
cutbacks/NNS
in/IN
social/JJ
welfare/NN
spending/NN
,/,
a/DT
problem/NN
resulting/VBG
from/IN
the/DT
decay/NN
of/IN
the/DT
traditional/JJ
nuclear/JJ
family/NN
,/,
and/CC
a/DT
problem/NN
intimately/RB
connected/VBN
to/TO
the/DT
recent/JJ
increase/NN
in/IN
the/DT
number/NN
of/IN
persons/NNS
living/VBG
below/IN
the/DT
poverty/NN
level/NN
./.
''/''
Leighton/NNP
E./NNP
Cluff/NNP
M.D./NNP
President/NNP
Robert/NNP
Wood/NNP
Johnson/NNP
Foundation/NNP
Princeton/NNP
,/,
N.J/NNP
./.
To/TO
quote/VB
the/DT
highly/RB
regarded/VBN
director/NN
of/IN
a/DT
privately/RB
funded/VBN
drop-in/JJ
center/NN
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the/DT
homeless/NN
in/IN
New/NNP
York/NNP
:/:
``/``
If/IN
you/PRP
're/VBP
homeless/JJ
,/,
you/PRP
do/VBP
n't/RB
sleep/VB
for/IN
fear/NN
of/IN
being/VBG
robbed/VBN
or/CC
murdered/VBN
./.
After/IN
your/PRP$
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three/CD
weeks/NNS
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sleep/NN
deprivation/NN
,/,
you/PRP
're/VBP
scarcely/RB
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touch/NN
with/IN
reality/NN
any/DT
more/RBR
;/:
without/IN
psychiatric/JJ
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,/,
you/PRP
may/MD
well/RB
be/VB
unable/JJ
to/TO
fend/VB
for/IN
yourself/PRP
ever/RB
again/RB
./.
''/''
Some/DT
of/IN
the/DT
homeless/NN
,/,
obviously/RB
,/,
had/VBD
pre-existing/JJ
mental/JJ
illness/NN
or/CC
addiction/NN
./.
But/CC
many/JJ
others/NNS
have/VBP
fallen/VBN
through/IN
cracks/NNS
in/IN
the/DT
economy/NN
into/IN
the/DT
grim/JJ
,/,
brutal/JJ
world/NN
of/IN
our/PRP$
city/NN
streets/NNS
./.
Once/RB
there/RB
,/,
what/WDT
ways/NNS
of/IN
escape/NN
are/VBP
open/JJ
to/TO
them/PRP
other/JJ
than/IN
drink/NN
,/,
drugs/NNS
or/CC
insanity/NN
?/.
Maxwell/NNP
R.D./NNP
Vos/NNP
Brooklyn/NNP
,/,
N.Y/NNP
./.
You/PRP
dismiss/VBP
as/IN
``/``
sentimental/JJ
''/''
the/DT
view/NN
that/IN
the/DT
reduction/NN
of/IN
federal/JJ
housing-assistance/JJ
programs/NNS
by/IN
77/CD
%/NN
might/MD
have/VB
played/VBN
a/DT
significant/JJ
role/NN
in/IN
the/DT
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number/NN
of/IN
men/NNS
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women/NNS
sleeping/VBG
on/IN
our/PRP$
city/NN
streets/NNS
during/IN
the/DT
Reagan-Bush/JJ
years/NNS
./.
There/EX
is/VBZ
no/DT
sign/NN
that/IN
you/PRP
bothered/VBD
to/TO
consider/VB
the/DT
inverse/NN
of/IN
your/PRP$
logic/NN
:/:
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,/,
that/IN
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abuse/NN
might/MD
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to/TO
some/DT
degree/NN
consequences/NNS
rather/RB
than/IN
causes/NNS
of/IN
homelessness/NN
./.
Your/PRP$
research/NN
stopped/VBD
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a/DT
convenient/JJ
assertion/NN
could/MD
be/VB
made/VBN
./.
Robert/NNP
S./NNP
Jenkins/NNP
Cambridge/NNP
,/,
Mass/NNP
./.
Of/IN
the/DT
approximately/RB
200/CD
sponsors/NNS
of/IN
the/DT
recent/JJ
march/NN
in/IN
Washington/NNP
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the/DT
homeless/NN
,/,
you/PRP
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cite/VB
such/JJ
groups/NNS
as/IN
the/DT
National/NNP
Association/NNP
of/IN
Home/NNP
Builders/NNPS
and/CC
the/DT
International/NNP
Union/NNP
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Bricklayers/NNPS
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Allied/NNP
Craftsmen/NNPS
,/,
insinuating/VBG
that/IN
the/DT
march/NN
got/VBD
its/PRP$
major/JJ
support/NN
from/IN
self-serving/JJ
groups/NNS
that/WDT
``/``
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a/DT
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thing/NN
when/WRB
they/PRP
see/VBP
it/PRP
,/,
''/''
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that/IN
the/DT
crusade/NN
was/VBD
based/VBN
on/IN
greed/NN
or/CC
the/DT
profit/NN
motive/NN
./.
But/CC
is/VBZ
n't/RB
the/DT
desire/NN
for/IN
profit/NN
the/DT
driving/VBG
force/NN
behind/IN
those/DT
who/WP
subscribe/VBP
to/TO
,/,
and/CC
advertise/VB
in/IN
,/,
your/PRP$
paper/NN
?/.
Why/WRB
did/VBD
n't/RB
you/PRP
mention/VB
the/DT
YMCA/NNP
or/CC
the/DT
YWCA/NNP
or/CC
Catholic/NNP
Charities/NNPS
USA/NNP
or/CC
a/DT
hundred/CD
other/JJ
nonprofit/JJ
organizations/NNS
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the/DT
march/NN
?/.
As/IN
for/IN
the/DT
findings/NNS
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the/DT
203/CD
Baltimore/NNP
homeless/NN
who/WP
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psychiatric/JJ
examinations/NNS
,/,
I/PRP
suggest/VBP
you/PRP
conduct/VB
your/PRP$
own/JJ
survey/NN
./.
Choose/VB
203/CD
business/NN
executives/NNS
,/,
including/VBG
,/,
perhaps/RB
,/,
someone/NN
from/IN
your/PRP$
own/JJ
staff/NN
,/,
and/CC
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on/IN
the/DT
streets/NNS
,/,
to/TO
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deprived/VBN
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one/CD
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their/PRP$
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,/,
families/NNS
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income/NN
./.
I/PRP
would/MD
predict/VB
that/IN
within/IN
a/DT
short/JJ
time/NN
most/JJS
of/IN
them/PRP
would/MD
find/VB
Thunderbird/NNP
a/DT
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substitute/NN
for/IN
Chivas/NNP
Regal/NNP
and/CC
that/IN
their/PRP$
``/``
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''/''
phobias/NNS
,/,
anxieties/NNS
,/,
depressions/NNS
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substance/NN
abuse/NN
would/MD
increase/VB
dramatically/RB
./.
Ruth/NNP
K./NNP
Nelson/NNP
Cullowhee/NNP
,/,
N.C/NNP
./.
ROGERS/NNP
COMMUNICATIONS/NNP
Inc./NNP
said/VBD
it/PRP
plans/VBZ
to/TO
raise/VB
175/CD
million/CD
to/TO
180/CD
million/CD
Canadian/JJ
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US$/$
148.9/CD
million/CD
to/TO
$/$
153.3/CD
million/CD
a/DT
private/JJ
placement/NN
of/IN
perpetual/JJ
preferred/VBN
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./.
Perpetual/JJ
preferred/VBN
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are/VBP
n't/RB
retractable/JJ
by/IN
the/DT
holders/NNS
,/,
the/DT
company/NN
said/VBD
./.
Rogers/NNP
said/VBD
the/DT
shares/NNS
will/MD
be/VB
convertible/JJ
into/IN
Class/NNP
B/NNP
shares/NNS
,/,
but/CC
that/IN
the/DT
company/NN
has/VBZ
the/DT
option/NN
to/TO
redeem/VB
the/DT
shares/NNS
before/IN
a/DT
conversion/NN
takes/VBZ
place/NN
./.
A/DT
spokesman/NN
for/IN
the/DT
Toronto/NNP
cable/NN
television/NN
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telecommunications/NNS
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the/DT
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rate/NN
has/VBZ
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yet/RB
been/VBN
fixed/VBN
,/,
but/CC
will/MD
probably/RB
be/VB
set/VBN
at/IN
around/IN
8/CD
%/NN
./.
He/PRP
declined/VBD
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discuss/VB
other/JJ
terms/NNS
of/IN
the/DT
issue/NN
./.
The/DT
House/NNP
passed/VBD
legislation/NN
designed/VBN
to/TO
make/VB
it/PRP
easier/JJR
for/IN
the/DT
Transportation/NNP
Department/NNP
to/TO
block/VB
airline/NN
leveraged/JJ
buy-outs/NNS
./.
The/DT
final/JJ
vote/NN
came/VBD
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the/DT
House/NNP
rejected/VBD
Republican/JJ
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to/TO
weaken/VB
the/DT
bill/NN
and/CC
approved/VBD
two/CD
amendments/NNS
sought/VBN
by/IN
organized/VBN
labor/NN
./.
The/DT
Bush/NNP
administration/NN
has/VBZ
threatened/VBN
to/TO
veto/VB
such/PDT
a/DT
bill/NN
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of/IN
what/WP
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as/IN
an/DT
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into/IN
the/DT
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of/IN
industry/NN
,/,
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300-113/CD
vote/NN
suggests/VBZ
that/IN
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the/DT
potential/NN
to/TO
override/VB
a/DT
veto/NN
./.
The/DT
broader/JJR
question/NN
is/VBZ
where/WRB
the/DT
Senate/NNP
stands/VBZ
on/IN
the/DT
issue/NN
./.
While/IN
the/DT
Senate/NNP
Commerce/NNP
Committee/NNP
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legislation/NN
similar/JJ
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the/DT
House/NNP
bill/NN
on/IN
airline/NN
leveraged/JJ
buy-outs/NNS
,/,
the/DT
measure/NN
has/VBZ
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yet/RB
come/VBN
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the/DT
full/JJ
floor/NN
./.
Although/IN
the/DT
legislation/NN
would/MD
apply/VB
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involving/VBG
any/DT
major/JJ
airline/NN
,/,
it/PRP
is/VBZ
aimed/VBN
at/IN
giving/VBG
the/DT
Transportation/NNP
Department/NNP
the/DT
chance/NN
to/TO
review/VB
in/IN
advance/NN
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financed/VBN
by/IN
large/JJ
amounts/NNS
of/IN
debt/NN
./.
``/``
The/DT
purpose/NN
of/IN
the/DT
bill/NN
is/VBZ
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put/VB
the/DT
brakes/NNS
on/IN
airline/NN
acquisitions/NNS
that/WDT
would/MD
so/RB
load/VB
a/DT
carrier/NN
up/RP
with/IN
debt/NN
that/IN
it/PRP
would/MD
impede/VB
safety/NN
or/CC
a/DT
carrier/NN
's/POS
ability/NN
to/TO
compete/VB
,/,
''/''
Rep./NNP
John/NNP
Paul/NNP
Hammerschmidt/NNP
,/,
(/(
R./NNP
,/,
Ark/NNP
./.
The/DT
bill/NN
,/,
as/IN
it/PRP
was/VBD
approved/VBN
by/IN
the/DT
House/NNP
Public/NNP
Works/NNPS
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Transportation/NNP
Committee/NNP
,/,
would/MD
give/VB
the/DT
Transportation/NNP
Department/NNP
up/IN
to/TO
50/CD
days/NNS
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review/VB
any/DT
purchase/NN
of/IN
15/CD
%/NN
or/CC
more/JJR
of/IN
the/DT
stock/NN
in/IN
an/DT
airline/NN
./.
The/DT
department/NN
would/MD
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required/VBN
to/TO
block/VB
the/DT
buy-out/NN
if/IN
the/DT
acquisition/NN
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carrier/NN
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that/IN
safety/NN
would/MD
be/VB
impaired/VBN
;/:
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ability/NN
to/TO
compete/VB
would/MD
be/VB
sharply/RB
diminished/VBN
;/:
it/PRP
would/MD
be/VB
put/VBN
into/IN
foreign/JJ
control/NN
;/:
or/CC
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the/DT
transaction/NN
would/MD
result/VB
in/IN
the/DT
sale/NN
of/IN
airline-related/JJ
assets/NNS
--/:
unless/IN
selling/VBG
such/JJ
assets/NNS
had/VBD
an/DT
overriding/VBG
public/NN
benefit/NN
./.
The/DT
House/NNP
approved/VBD
an/DT
amendment/NN
offered/VBN
by/IN
Rep./NNP
Peter/NNP
DeFazio/NNP
D./NNP
,/,
Ore./NNP
that/WDT
would/MD
,/,
in/IN
addition/NN
to/TO
the/DT
previous/JJ
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,/,
also/RB
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department/NN
to/TO
block/VB
the/DT
acquisition/NN
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an/DT
airline/NN
if/IN
the/DT
added/VBN
debt/NN
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likely/JJ
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result/VB
in/IN
a/DT
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in/IN
the/DT
number/NN
of/IN
the/DT
carrier/NN
's/POS
employees/NNS
,/,
or/CC
their/PRP$
wages/NNS
or/CC
benefits/NNS
./.
Rep./NNP
James/NNP
Traficant/NNP
D./NNP
,/,
Ohio/NNP
the/DT
amendment/NN
,/,
which/WDT
passed/VBD
271-147/CD
,/,
would/MD
``/``
let/VB
the/DT
American/JJ
worker/NN
know/VB
that/IN
we/PRP
consider/VBP
them/PRP
occasionally/RB
./.
''/''
But/CC
Rep./NNP
Hammerschmidt/NNP
said/VBD
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the/DT
provision/NN
,/,
which/WDT
he/PRP
dubbed/VBD
a/DT
``/``
special/JJ
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''/''
amendment/NN
,/,
was/VBD
likely/JJ
to/TO
make/VB
the/DT
bill/NN
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more/RBR
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./.
On/IN
Tuesday/NNP
,/,
the/DT
House/NNP
approved/VBD
a/DT
labor-backed/JJ
amendment/NN
that/WDT
would/MD
require/VB
the/DT
Transportation/NNP
Department/NNP
to/TO
reject/VB
airline/NN
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if/IN
the/DT
person/NN
seeking/VBG
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purchase/VB
a/DT
carrier/NN
had/VBD
run/VBN
two/CD
or/CC
more/JJR
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previously/RB
that/WDT
have/VBP
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protection/NN
from/IN
creditors/NNS
under/IN
Chapter/NN
11/CD
of/IN
the/DT
federal/JJ
Bankruptcy/NNP
Code/NNP
./.
The/DT
provision/NN
,/,
called/VBN
the/DT
``/``
two-time-losers/JJ
''/''
amendment/NN
by/IN
its/PRP$
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apparently/RB
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at/IN
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Texas/NNP
Air/NNP
Corp./NNP
Chairman/NNP
Frank/NNP
Lorenzo/NNP
from/IN
attempting/VBG
to/TO
take/VB
over/RP
another/DT
airline/NN
./.
Follow-up/JJ
report/NN
:/:
You/PRP
now/RB
may/MD
drop/VB
by/IN
the/DT
Voice/NNP
of/IN
America/NNP
offices/NNS
in/IN
Washington/NNP
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read/VB
the/DT
text/NN
of/IN
what/WP
the/DT
Voice/NNP
is/VBZ
broadcasting/VBG
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those/DT
130/CD
million/CD
people/NNS
around/IN
the/DT
world/NN
who/WP
tune/VBP
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to/TO
it/PRP
each/DT
week/NN
./.
You/PRP
can/MD
even/RB
take/VB
notes/NNS
--/:
extensive/JJ
notes/NNS
,/,
for/IN
the/DT
Voice/NNP
folks/NNS
wo/MD
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look/VB
over/IN
your/PRP$
shoulder/NN
--/:
about/IN
what/WP
you/PRP
read/VBP
./.
You/PRP
can/MD
do/VB
all/PDT
this/DT
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you/PRP
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a/DT
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or/CC
a/DT
researcher/NN
or/CC
a/DT
scholar/NN
or/CC
a/DT
member/NN
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Congress/NNP
./.
And/CC
my/PRP$
newspaper/NN
can/MD
print/VB
the/DT
text/NN
of/IN
those/DT
broadcasts/NNS
./.
Until/IN
the/DT
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day/NN
,/,
you/PRP
as/IN
an/DT
ordinary/JJ
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of/IN
this/DT
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right/NN
to/TO
see/VB
what/WP
your/PRP$
government/NN
was/VBD
telling/VBG
your/PRP$
cousins/NNS
around/IN
the/DT
world/NN
./.
That/DT
was/VBD
the/DT
law/NN
./.
And/CC
I/PRP
apparently/RB
had/VBD
no/DT
right/NN
to/TO
print/VB
hither/RB
what/WP
the/DT
Voice/NNP
was/VBD
booming/VBG
to/TO
yon/RB
./.
It/PRP
was/VBD
censorship/NN
./.
It/PRP
was/VBD
outrageous/JJ
./.
And/CC
it/PRP
was/VBD
stupid/JJ
./.
The/DT
theory/NN
was/VBD
that/IN
the/DT
Voice/NNP
is/VBZ
a/DT
propaganda/NN
agency/NN
and/CC
this/DT
government/NN
should/MD
n't/RB
propagandize/VB
its/PRP$
own/JJ
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./.
That/DT
sounds/VBZ
neat/JJ
,/,
but/CC
this/DT
government/NN
--/:
any/DT
government/NN
--/:
propagandizes/VBZ
its/PRP$
own/JJ
people/NNS
every/DT
day/NN
./.
Government/NNP
press/NN
releases/NNS
,/,
speeches/NNS
,/,
briefings/NNS
,/,
tours/NNS
of/IN
military/JJ
facilities/NNS
,/,
publications/NNS
are/VBP
all/DT
propaganda/NN
of/IN
sorts/NNS
./.
Propaganda/NN
is/VBZ
just/RB
information/NN
to/TO
support/VB
a/DT
viewpoint/NN
,/,
and/CC
the/DT
beauty/NN
of/IN
a/DT
democracy/NN
is/VBZ
that/IN
it/PRP
enables/VBZ
you/PRP
to/TO
hear/VB
or/CC
read/VB
every/DT
viewpoint/NN
and/CC
then/RB
make/VB
up/RP
your/PRP$
own/JJ
mind/NN
on/IN
an/DT
issue/NN
./.
The/DT
restrictions/NNS
on/IN
viewing/VBG
and/CC
dissemination/NN
of/IN
Voice/NNP
material/NN
were/VBD
especially/RB
absurd/JJ
:/:
An/DT
agency/NN
in/IN
the/DT
information/NN
business/NN
was/VBD
not/RB
being/VBG
allowed/VBN
to/TO
inform/VB
./.
In/IN
June/NNP
1988/CD
,/,
I/PRP
wrote/VBD
in/IN
this/DT
space/NN
about/IN
this/DT
issue/NN
./.
Assuming/VBG
it/PRP
was/VBD
n't/RB
one/CD
of/IN
those/DT
columns/NNS
that/IN
you/PRP
clipped/VBD
and/CC
put/VBD
on/IN
the/DT
refrigerator/NN
door/NN
,/,
I/PRP
'll/MD
review/VB
the/DT
facts/NNS
./.
The/DT
Voice/NNP
of/IN
America/NNP
is/VBZ
a/DT
government/NN
agency/NN
that/WDT
broadcasts/VBZ
news/NN
and/CC
views/NNS
--/:
some/DT
might/MD
say/VB
propaganda/NN
--/:
in/IN
43/CD
languages/NNS
to/TO
130/CD
million/CD
listeners/NNS
around/IN
the/DT
world/NN
./.
It/PRP
does/VBZ
a/DT
first-rate/JJ
job/NN
./.
Its/PRP$
budget/NN
$/$
184/CD
million/CD
--/:
is/VBZ
paid/VBN
for/IN
by/IN
you/PRP
./.
But/CC
a/DT
1948/CD
law/NN
barred/VBD
the/DT
``/``
dissemination/NN
''/''
of/IN
that/DT
material/NN
in/IN
the/DT
U.S/NNP
./.
The/DT
law/NN
let/VBD
scholars/NNS
,/,
reporters/NNS
and/CC
researchers/NNS
read/VB
texts/NNS
of/IN
VOA/NNP
material/NN
,/,
only/RB
at/IN
VOA/NNP
headquarters/NNS
in/IN
Washington/NNP
,/,
but/CC
it/PRP
barred/VBD
them/PRP
from/IN
copying/VBG
texts/NNS
./.
And/CC
,/,
of/IN
course/NN
,/,
there/EX
's/VBZ
that/DT
word/NN
``/``
dissemination/NN
./.
''/''
How/WRB
's/VBZ
that/DT
again/RB
?/.
``/``
You/PRP
may/MD
come/VB
by/IN
the/DT
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read/VB
but/CC
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copy/VB
either/DT
manually/RB
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photocopying/VBG
,/,
''/''
a/DT
Voice/NNP
official/NN
explained/VBD
when/WRB
I/PRP
asked/VBD
./.
What/WP
if/IN
I/PRP
tune/VBP
in/RP
my/PRP$
short-wave/JJ
radio/NN
,/,
transcribe/VBP
an/DT
editorial/NN
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,/,
and/CC
print/VBP
it/PRP
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my/PRP$
newspaper/NN
?/.
``/``
Nor/CC
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you/PRP
free/JJ
to/TO
reprint/VB
such/JJ
material/NN
,/,
''/''
I/PRP
was/VBD
advised/VBN
./.
That/WDT
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lot/NN
like/IN
censorship/NN
,/,
so/RB
after/IN
years/NNS
of/IN
letters/NNS
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conversations/NNS
that/WDT
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nowhere/RB
,/,
I/PRP
sued/VBD
./.
A/DT
couple/NN
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weeks/NNS
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,/,
I/PRP
lost/VBD
the/DT
case/NN
in/IN
federal/JJ
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court/NN
in/IN
Des/NNP
Moines/NNP
./.
At/IN
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,/,
that/DT
's/VBZ
the/DT
way/NN
it/PRP
was/VBD
reported/VBN
./.
And/CC
,/,
indeed/RB
,/,
the/DT
lawsuit/NN
was/VBD
dismissed/VBN
./.
But/CC
I/PRP
--/:
I/PRP
like/VBP
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think/VB
of/IN
it/PRP
in/IN
terms/NNS
of/IN
we/PRP
,/,
all/DT
of/IN
us/PRP
--/:
won/VBD
the/DT
point/NN
./.
For/IN
a/DT
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way/NN
to/TO
the/DT
ruling/NN
:/:
The/DT
United/NNP
States/NNPS
Information/NNP
Agency/NNP
,/,
which/WDT
runs/VBZ
the/DT
Voice/NNP
,/,
changed/VBD
its/PRP$
position/NN
on/IN
three/CD
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points/NNS
./.
--/:
The/DT
USIA/NNP
said/VBD
that/IN
,/,
on/IN
reflection/NN
,/,
of/IN
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I/PRP
could/MD
print/VB
anything/NN
I/PRP
could/MD
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hands/NNS
on/IN
./.
The/DT
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dissemination/NN
,/,
it/PRP
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referred/VBD
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itself/PRP
./.
``/``
The/DT
USIA/NNP
officially/RB
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publicly/RB
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absolute/JJ
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everyone/NN
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the/DT
USIA/NNP
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the/DT
United/NNP
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,/,
''/''
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the/DT
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Mark/NNP
McCormick/NNP
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Des/NNP
Moines/NNP
,/,
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a/DT
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pointing/VBG
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make/VB
me/PRP
feel/VB
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after/IN
the/DT
press/NN
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I/PRP
had/VBD
lost/VBN
./.
The/DT
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noted/VBD
the/DT
new/JJ
USIA/NNP
position/NN
but/CC
,/,
just/RB
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,/,
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``/``
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Congress/NNP
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intend/VB
to/TO
preclude/VB
plaintiffs/NNS
from/IN
disseminating/VBG
USIA/NNP
information/NN
domestically/RB
./.
''/''
--/:
The/DT
USIA/NNP
said/VBD
that/IN
,/,
on/IN
reflection/NN
,/,
anyone/NN
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view/VB
the/DT
VOA/NNP
materials/NNS
,/,
not/RB
just/RB
the/DT
reporters/NNS
,/,
scholars/NNS
,/,
researchers/NNS
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congressmen/NNS
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are/VBP
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the/DT
statute/NN
./.
``/``
The/DT
USIA/NNP
publicly/RB
and/CC
officially/RB
stated/VBD
in/IN
the/DT
litigation/NN
that/IN
all/DT
persons/NNS
are/VBP
allowed/VBN
access/NN
to/TO
the/DT
materials/NNS
,/,
notwithstanding/IN
the/DT
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designations/NNS
,/,
because/IN
the/DT
USIA/NNP
has/VBZ
determined/VBN
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check/VB
the/DT
credentials/NNS
of/IN
any/DT
person/NN
appearing/VBG
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requesting/VBG
to/TO
see/VB
the/DT
materials/NNS
,/,
''/''
Mr./NNP
McCormick/NNP
noted/VBD
./.
--/:
And/CC
the/DT
USIA/NNP
said/VBD
that/IN
all/DT
of/IN
us/PRP
could/MD
take/VB
extensive/JJ
notes/NNS
./.
``/``
The/DT
agency/NN
publicly/RB
and/CC
officially/RB
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the/DT
lawsuit/NN
that/IN
persons/NNS
who/WP
examine/VBP
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materials/NNS
may/MD
make/VB
notes/NNS
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,/,
while/IN
the/DT
agency/NN
position/NN
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may/MD
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take/VB
verbatim/JJ
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,/,
no/DT
one/NN
will/MD
check/VB
to/TO
determine/VB
what/WDT
notes/NNS
a/DT
person/NN
has/VBZ
taken/VBN
,/,
''/''
Mr./NNP
McCormick/NNP
reported/VBD
./.
I/PRP
had/VBD
sought/VBN
,/,
in/IN
my/PRP$
suit/NN
,/,
the/DT
right/NN
to/TO
print/VB
Voice/NNP
material/NN
,/,
which/WDT
had/VBD
been/VBN
denied/VBN
me/PRP
,/,
and/CC
I/PRP
had/VBD
sought/VBN
a/DT
right/NN
to/TO
receive/VB
the/DT
information/NN
,/,
arguing/VBG
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effect/NN
that/IN
a/DT
right/NN
to/TO
print/VB
government/NN
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is/VBZ
n't/RB
very/RB
helpful/JJ
if/IN
I/PRP
have/VBP
no/DT
right/NN
to/TO
get/VB
the/DT
information/NN
./.
But/CC
the/DT
court/NN
disagreed/VBD
./.
``/``
The/DT
First/NNP
Amendment/NNP
proscribes/VBZ
the/DT
government/NN
from/IN
passing/VBG
laws/NNS
abridging/VBG
the/DT
right/NN
to/TO
free/JJ
speech/NN
,/,
''/''
Judge/NNP
Donald/NNP
O'Brien/NNP
ruled/VBD
./.
``/``
The/DT
First/NNP
Amendment/NNP
does/VBZ
not/RB
prescribe/VB
a/DT
duty/NN
upon/IN
the/DT
government/NN
to/TO
assure/VB
easy/JJ
access/NN
to/TO
information/NN
for/IN
members/NNS
of/IN
the/DT
press/NN
./.
''/''
So/IN
now/RB
the/DT
situation/NN
is/VBZ
this/DT
:/:
You/PRP
have/VBP
a/DT
right/NN
to/TO
read/VB
Voice/NNP
of/IN
America/NNP
scripts/NNS
if/IN
you/PRP
do/VBP
n't/RB
mind/VB
traveling/VBG
to/TO
Washington/NNP
every/DT
week/NN
or/CC
so/RB
and/CC
visiting/VBG
the/DT
Voice/NNP
office/NN
during/IN
business/NN
hours/NNS
./.
I/PRP
have/VBP
a/DT
right/NN
to/TO
print/VB
those/DT
scripts/NNS
if/IN
I/PRP
go/VBP
there/RB
and/CC
laboriously/RB
--/:
but/CC
no/RB
longer/JJR
surreptitiously/RB
--/:
copy/VBP
them/PRP
out/IN
in/IN
long/JJ
hand/NN
./.
But/CC
neither/DT
of/IN
us/PRP
can/MD
copy/VB
the/DT
material/NN
on/IN
a/DT
Xerox/NNP
machine/NN
or/CC
have/VB
it/PRP
sent/VBN
to/TO
us/PRP
./.
In/IN
an/DT
era/NN
when/WRB
every/DT
government/NN
agency/NN
has/VBZ
a/DT
public-relations/NNS
machine/NN
that/WDT
sends/VBZ
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whether/IN
you/PRP
want/VBP
it/PRP
or/CC
not/RB
,/,
this/DT
does/VBZ
seem/VB
odd/JJ
./.
Indeed/RB
,/,
Judge/NNP
O'Brien/NNP
ruled/VBD
that/IN
``/``
it/PRP
would/MD
be/VB
easy/JJ
to/TO
conclude/VB
that/IN
the/DT
USIA/NNP
's/POS
position/NN
is/VBZ
`/``
inappropriate/JJ
or/CC
even/RB
stupid/JJ
,/,
'/''
''/''
but/CC
it/PRP
's/VBZ
the/DT
law/NN
./.
So/IN
the/DT
next/JJ
step/NN
,/,
I/PRP
suspect/VBP
,/,
is/VBZ
to/TO
try/VB
to/TO
get/VB
the/DT
law/NN
changed/VBD
./.
We/PRP
I/PRP
assume/VBP
you/PRP
're/VBP
in/IN
this/DT
with/IN
me/PRP
at/IN
this/DT
point/NN
three/CD
words/NNS
--/:
``/``
for/IN
examination/NN
only/RB
''/''
--/:
eliminated/VBN
from/IN
the/DT
law/NN
./.
Section/NN
501/CD
of/IN
the/DT
United/NNP
States/NNPS
Information/NNP
and/CC
Educational/NNP
Exchange/NNP
Act/NNP
of/IN
1948/CD
says/VBZ
Voice/NNP
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shall/MD
be/VB
available/JJ
to/TO
certain/JJ
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the/DT
USIA/NNP
's/POS
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position/NN
,/,
all/DT
of/IN
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examination/NN
only/RB
./.
''/''
If/IN
those/DT
words/NNS
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there/RB
,/,
the/DT
nice/JJ
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the/DT
Voice/NNP
would/MD
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to/TO
send/VB
you/PRP
the/DT
information/NN
or/CC
,/,
at/IN
the/DT
very/RB
least/JJS
,/,
let/VB
you/PRP
photocopy/VB
it/PRP
./.
This/DT
is/VBZ
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a/DT
trivial/JJ
issue/NN
./.
``/``
You/PRP
have/VBD
.../:
raised/VBN
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questions/NNS
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ought/MD
to/TO
be/VB
answered/VBN
:/:
What/WP
does/VBZ
USIA/NNP
say/VB
about/IN
America/NNP
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;/:
how/WRB
do/VBP
we/PRP
say/VB
it/PRP
;/:
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how/WRB
can/MD
American/JJ
taxpayers/NNS
get/VB
the/DT
answers/NNS
to/TO
these/DT
questions/NNS
?/.
''/''
a/DT
man/NN
wrote/VBD
me/PRP
a/DT
couple/NN
of/IN
years/NNS
ago/IN
./.
The/DT
man/NN
was/VBD
Charles/NNP
Z./NNP
Wick/NNP
./.
At/IN
the/DT
time/NN
,/,
he/PRP
was/VBD
director/NN
of/IN
the/DT
He/PRP
had/VBD
no/DT
answers/NNS
then/RB
./.
Now/RB
there/EX
are/VBP
some/DT
./.
This/DT
democracy/NN
is/VBZ
suddenly/RB
a/DT
little/RB
more/RBR
democratic/JJ
./.
I/PRP
feel/VBP
pretty/RB
good/JJ
about/IN
it/PRP
./.
Mr./NNP
Gartner/NNP
is/VBZ
editor/NN
and/CC
co-owner/NN
of/IN
the/DT
Daily/NNP
Tribune/NNP
in/IN
Ames/NNP
,/,
Iowa/NNP
,/,
and/CC
president/NN
of/IN
NBC/NNP
News/NNP
in/IN
New/NNP
York/NNP
./.
R./NNP
Gordon/NNP
McGovern/NNP
was/VBD
forced/VBN
out/IN
as/IN
Campbell/NNP
Soup/NNP
Co./NNP
's/POS
president/NN
and/CC
chief/NN
executive/NN
officer/NN
,/,
the/DT
strongest/JJS
evidence/NN
yet/RB
of/IN
the/DT
power/NN
that/WDT
Dorrance/NNP
family/NN
members/NNS
intend/VBP
to/TO
wield/VB
in/IN
reshaping/VBG
the/DT
troubled/JJ
food/NN
company/NN
./.
Herbert/NNP
M./NNP
Baum/NNP
,/,
the/DT
53-year-old/JJ
president/NN
of/IN
the/DT
company/NN
's/POS
Campbell/NNP
U.S.A./NNP
unit/NN
,/,
and/CC
Edwin/NNP
L./NNP
Harper/NNP
,/,
47/CD
,/,
the/DT
chief/NN
financial/JJ
officer/NN
,/,
will/MD
run/VB
Campbell/NNP
as/IN
a/DT
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,/,
dividing/VBG
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rather/RB
evenly/RB
until/IN
a/DT
successor/NN
is/VBZ
named/VBN
./.
The/DT
board/NN
already/RB
has/VBZ
been/VBN
searching/VBG
for/IN
strong/JJ
outside/JJ
candidates/NNS
,/,
including/VBG
food-industry/NN
executives/NNS
with/IN
considerable/JJ
international/JJ
experience/NN
./.
Wall/NNP
Street/NNP
reacted/VBD
favorably/RB
to/TO
Mr./NNP
McGovern/NNP
's/POS
departure/NN
and/CC
its/PRP$
implications/NNS
./.
In/IN
heavy/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Campbell/NNP
's/POS
shares/NNS
rose/VBD
$/$
3.375/CD
to/TO
close/VB
at/IN
$/$
47.125/CD
./.
``/``
The/DT
profit/NN
motive/NN
of/IN
the/DT
major/JJ
shareholders/NNS
has/VBZ
clearly/RB
changed/VBN
for/IN
the/DT
better/JJR
,/,
''/''
said/VBD
John/NNP
McMillin/NNP
,/,
a/DT
food/NN
industry/NN
analyst/NN
for/IN
Prudential-Bache/NNP
in/IN
New/NNP
York/NNP
./.
Mr./NNP
McGovern/NNP
was/VBD
widely/RB
seen/VBN
as/IN
sales/NNS
,/,
and/CC
not/RB
profit/NN
,/,
oriented/VBN
./.
``/``
New/JJ
managers/NNS
would/MD
think/VB
a/DT
little/RB
more/JJR
like/IN
Wall/NNP
Street/NNP
,/,
''/''
Mr./NNP
McMillin/NNP
added/VBD
./.
Some/DT
of/IN
the/DT
surge/NN
in/IN
the/DT
stock/NN
's/POS
price/NN
appeared/VBD
to/TO
be/VB
linked/VBN
to/TO
revived/VBN
takeover/NN
speculation/NN
,/,
which/WDT
has/VBZ
contributed/VBN
to/TO
volatility/NN
of/IN
Campbell/NNP
shares/NNS
in/IN
recent/JJ
months/NNS
./.
Campbell/NNP
's/POS
international/JJ
businesses/NNS
,/,
particularly/RB
in/IN
the/DT
U.K./NNP
and/CC
Italy/NNP
,/,
appear/VBP
to/TO
be/VB
at/IN
the/DT
heart/NN
of/IN
its/PRP$
problems/NNS
./.
Growth/NN
has/VBZ
fallen/VBN
short/RB
of/IN
targets/NNS
and/CC
operating/NN
earnings/NNS
are/VBP
far/RB
below/IN
results/NNS
in/IN
U.S./NNP
units/NNS
./.
For/IN
example/NN
,/,
Campbell/NNP
is/VBZ
a/DT
distant/JJ
third/JJ
in/IN
the/DT
U.K./NNP
frozen/VBN
foods/NNS
market/NN
,/,
where/WRB
it/PRP
recently/RB
paid/VBD
24/CD
times/NNS
earnings/NNS
for/IN
Freshbake/NNP
Foods/NNPS
PLC/NNP
and/CC
wound/VBD
up/IN
with/IN
far/RB
more/JJR
capacity/NN
than/IN
it/PRP
could/MD
use/VB
./.
Similarly/RB
,/,
Campbell/NNP
's/POS
Italian/JJ
biscuit/NN
operation/NN
,/,
D./NNP
Lazzaroni/NNP
&/CC
Co./NNP
,/,
has/VBZ
been/VBN
hurt/VBN
by/IN
overproduction/NN
and/CC
distribution/NN
problems/NNS
./.
Such/JJ
problems/NNS
will/MD
require/VB
considerable/JJ
skill/NN
to/TO
resolve/VB
./.
However/RB
,/,
neither/DT
Mr./NNP
Baum/NNP
nor/CC
Mr./NNP
Harper/NNP
has/VBZ
much/JJ
international/JJ
experience/NN
./.
Mr./NNP
Baum/NNP
,/,
a/DT
seasoned/JJ
marketer/NN
who/WP
is/VBZ
said/VBN
to/TO
have/VB
a/DT
good/JJ
rapport/NN
with/IN
Campbell/NNP
employees/NNS
,/,
will/MD
have/VB
responsibility/NN
for/IN
all/DT
domestic/JJ
operations/NNS
except/IN
the/DT
Pepperidge/NNP
Farm/NNP
unit/NN
./.
Mr./NNP
Harper/NNP
,/,
a/DT
veteran/NN
of/IN
several/JJ
manufacturing/VBG
companies/NNS
who/WP
joined/VBD
Campbell/NNP
in/IN
1986/CD
,/,
will/MD
take/VB
charge/NN
of/IN
all/DT
overseas/JJ
operations/NNS
as/RB
well/RB
as/IN
Pepperidge/NNP
./.
In/IN
an/DT
joint/JJ
interview/NN
yesterday/NN
,/,
both/DT
men/NNS
said/VBD
they/PRP
would/MD
like/VB
to/TO
be/VB
the/DT
company/NN
's/POS
next/JJ
chief/NN
executive/NN
./.
Mr./NNP
McGovern/NNP
,/,
63/CD
,/,
had/VBD
been/VBN
under/IN
intense/JJ
pressure/NN
from/IN
the/DT
board/NN
to/TO
boost/VB
Campbell/NNP
's/POS
mediocre/JJ
performance/NN
to/TO
the/DT
level/NN
of/IN
other/JJ
food/NN
companies/NNS
./.
The/DT
board/NN
is/VBZ
dominated/VBN
by/IN
the/DT
heirs/NNS
of/IN
the/DT
late/JJ
John/NNP
T./NNP
Dorrance/NNP
Jr./NNP
,/,
who/WP
controlled/VBD
about/IN
58/CD
%/NN
of/IN
Campbell/NNP
's/POS
stock/NN
when/WRB
he/PRP
died/VBD
in/IN
April/NNP
./.
In/IN
recent/JJ
months/NNS
,/,
Mr./NNP
Dorrance/NNP
's/POS
children/NNS
and/CC
other/JJ
family/NN
members/NNS
have/VBP
pushed/VBN
for/IN
improved/VBN
profitability/NN
and/CC
higher/JJR
returns/NNS
on/IN
their/PRP$
equity/NN
./.
In/IN
August/NNP
,/,
the/DT
company/NN
took/VBD
a/DT
$/$
343/CD
million/CD
pretax/NN
charge/NN
against/IN
fiscal/JJ
1989/CD
earnings/NNS
when/WRB
it/PRP
announced/VBD
a/DT
world-wide/JJ
restructuring/VBG
plan/NN
./.
The/DT
plan/NN
calls/VBZ
for/IN
closing/VBG
at/IN
least/JJS
nine/CD
plants/NNS
and/CC
eliminating/VBG
about/IN
3,600/CD
jobs/NNS
./.
But/CC
analysts/NNS
said/VBD
early/JJ
results/NNS
from/IN
the/DT
reorganization/NN
have/VBP
been/VBN
disappointing/JJ
,/,
especially/RB
in/IN
Europe/NNP
,/,
and/CC
there/EX
were/VBD
signs/NNS
that/IN
the/DT
board/NN
became/VBD
impatient/NN
./.
Campbell/NNP
officials/NNS
said/VBD
Mr./NNP
McGovern/NNP
was/VBD
n't/RB
available/JJ
yesterday/NN
to/TO
discuss/VB
the/DT
circumstances/NNS
of/IN
his/PRP$
departure/NN
./.
The/DT
company/NN
's/POS
prepared/VBN
statement/NN
quoted/VBD
him/PRP
as/IN
saying/VBG
,/,
``/``
The/DT
CEO/NNP
succession/NN
is/VBZ
well/RB
along/IN
and/CC
I/PRP
've/VBP
decided/VBN
for/IN
personal/JJ
reasons/NNS
to/TO
take/VB
early/JJ
retirement/NN
./.
''/''
But/CC
people/NNS
familiar/JJ
with/IN
the/DT
agenda/NN
of/IN
the/DT
board/NN
's/POS
meeting/NN
last/JJ
week/NN
in/IN
London/NNP
said/VBD
Mr./NNP
McGovern/NNP
was/VBD
fired/VBN
./.
Mr./NNP
McGovern/NNP
himself/PRP
had/VBD
said/VBN
repeatedly/RB
that/IN
he/PRP
intended/VBD
to/TO
stay/VB
on/IN
until/IN
he/PRP
reached/VBD
the/DT
conventional/JJ
retirement/NN
age/NN
of/IN
65/CD
in/IN
October/NNP
1991/CD
,/,
``/``
unless/IN
I/PRP
get/VBP
fired/VBN
./.
''/''
Campbell/NNP
said/VBD
Mr./NNP
McGovern/NNP
had/VBD
withdrawn/VBN
his/PRP$
name/NN
as/IN
a/DT
candidate/NN
for/IN
re-election/NN
as/IN
a/DT
director/NN
at/IN
the/DT
annual/JJ
shareholder/NN
meeting/NN
,/,
scheduled/VBN
for/IN
Nov./NNP
17/CD
./.
For/IN
fiscal/JJ
1989/CD
,/,
Mr./NNP
McGovern/NNP
received/VBD
a/DT
salary/NN
of/IN
$/$
877,663/CD
./.
He/PRP
owns/VBZ
about/IN
45,000/CD
shares/NNS
of/IN
Campbell/NNP
stock/NN
and/CC
has/VBZ
options/NNS
to/TO
buy/VB
more/JJR
than/IN
100,000/CD
additional/JJ
shares/NNS
./.
He/PRP
will/MD
be/VB
eligible/JJ
for/IN
an/DT
annual/JJ
pension/NN
of/IN
more/JJR
than/IN
$/$
244,000/CD
with/IN
certain/JJ
other/JJ
fringe/NN
benefits/NNS
./.
During/IN
Mr./NNP
McGovern/NNP
's/POS
nine-year/JJ
term/NN
as/IN
president/NN
,/,
the/DT
company/NN
's/POS
sales/NNS
rose/VBD
to/TO
$/$
5.7/CD
billion/CD
from/IN
$/$
2.8/CD
billion/CD
and/CC
net/JJ
income/NN
increased/VBD
to/TO
$/$
274/CD
million/CD
from/IN
$/$
130/CD
million/CD
,/,
the/DT
statement/NN
said/VBD
./.
Mr./NNP
Baum/NNP
said/VBD
he/PRP
and/CC
Mr./NNP
Harper/NNP
both/DT
advocated/VBD
closing/VBG
some/DT
plants/NNS
as/RB
long/JJ
ago/RB
as/IN
early/JJ
1988/CD
./.
``/``
You/PRP
've/VBP
got/VBN
to/TO
make/VB
the/DT
restructuring/NN
work/NN
,/,
''/''
said/VBD
Mr./NNP
Baum/NNP
./.
``/``
You/PRP
've/VBP
got/VBN
to/TO
make/VB
those/DT
savings/NNS
now/RB
./.
''/''
Mr./NNP
Harper/NNP
expressed/VBD
confidence/NN
that/IN
he/PRP
and/CC
Mr./NNP
Baum/NNP
can/MD
convince/VB
the/DT
board/NN
of/IN
their/PRP$
worthiness/NN
to/TO
run/VB
the/DT
company/NN
./.
``/``
We/PRP
look/VBP
upon/IN
this/DT
as/IN
a/DT
great/JJ
opportunity/NN
to/TO
prove/VB
the/DT
fact/NN
that/IN
we/PRP
have/VBP
a/DT
tremendous/JJ
management/NN
team/NN
,/,
''/''
he/PRP
said/VBD
./.
He/PRP
predicted/VBD
that/IN
the/DT
board/NN
would/MD
give/VB
the/DT
current/JJ
duo/NN
until/IN
early/JJ
next/JJ
year/NN
before/IN
naming/VBG
a/DT
new/JJ
chief/NN
executive/NN
./.
Mr./NNP
Baum/NNP
said/VBD
the/DT
two/CD
have/VBP
orders/NNS
to/TO
``/``
focus/VB
on/IN
bottom-line/JJ
profits/NNS
''/''
and/CC
to/TO
``/``
take/VB
a/DT
hard/JJ
look/NN
at/IN
our/PRP$
businesses/NNS
--/:
what/WP
is/VBZ
good/JJ
,/,
what/WP
is/VBZ
not/RB
so/RB
good/JJ
./.
''/''
Analysts/NNS
generally/RB
applaud/VBP
the/DT
performance/NN
of/IN
Campbell/NNP
U.S.A./NNP
,/,
the/DT
company/NN
's/POS
largest/JJS
division/NN
,/,
which/WDT
posted/VBD
6/CD
%/NN
unit/NN
sales/NNS
growth/NN
and/CC
a/DT
15/CD
%/NN
improvement/NN
in/IN
operating/NN
profit/NN
for/IN
fiscal/JJ
1989/CD
./.
``/``
The/DT
way/NN
that/IN
we/PRP
've/VBP
been/VBN
managing/VBG
Campbell/NNP
U.S.A./NNP
can/MD
hopefully/RB
spread/VB
to/TO
other/JJ
areas/NNS
of/IN
the/DT
company/NN
,/,
''/''
Mr./NNP
Baum/NNP
said/VBD
./.
In/IN
the/DT
interview/NN
at/IN
headquarters/NN
yesterday/NN
afternoon/NN
,/,
both/DT
men/NNS
exuded/VBD
confidence/NN
and/CC
seemed/VBD
to/TO
work/VB
well/RB
together/RB
./.
``/``
You/PRP
've/VBP
got/VBN
two/CD
champions/NNS
sitting/VBG
right/JJ
before/IN
you/PRP
,/,
''/''
said/VBD
Mr./NNP
Baum/NNP
./.
``/``
We/PRP
play/VBP
to/TO
win/VB
./.
''/''
Wednesday/NNP
,/,
November/NNP
1/CD
,/,
1989/CD
The/DT
key/JJ
U.S./NNP
and/CC
foreign/JJ
annual/JJ
interest/NN
rates/NNS
below/IN
are/VBP
a/DT
guide/NN
to/TO
general/JJ
levels/NNS
but/CC
do/VBP
n't/RB
always/RB
represent/VB
actual/JJ
transactions/NNS
./.
PRIME/NNP
RATE/NNP
:/:
10/CD
1\/2/CD
%/NN
./.
The/DT
base/NN
rate/NN
on/IN
corporate/JJ
loans/NNS
at/IN
large/JJ
U.S./NNP
money/NN
center/NN
commercial/JJ
banks/NNS
./.
FEDERAL/NNP
FUNDS/NNPS
:/:
9/CD
1\/2/CD
%/NN
high/JJ
,/,
8/CD
3\/4/CD
%/NN
low/JJ
,/,
8/CD
3\/4/CD
%/NN
near/IN
closing/JJ
bid/NN
,/,
9/CD
%/NN
offered/VBD
./.
Reserves/NNS
traded/VBN
among/IN
commercial/JJ
banks/NNS
for/IN
overnight/JJ
use/NN
in/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
or/CC
more/JJR
./.
Source/NN
:/:
Fulton/NNP
Prebon/NNP
U.S.A/NNP
./.
Inc/NNP
./.
DISCOUNT/NNP
RATE/NNP
:/:
7/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
depository/NN
institutions/NNS
by/IN
the/DT
New/NNP
York/NNP
Federal/NNP
Reserve/NNP
Bank/NNP
./.
CALL/NNP
MONEY/NNP
:/:
9/CD
3\/4/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
brokers/NNS
on/IN
stock/NN
exchange/NN
collateral/NN
./.
COMMERCIAL/JJ
PAPER/NN
placed/VBN
directly/RB
by/IN
General/NNP
Motors/NNPS
Acceptance/NNP
Corp./NNP
:/:
8.55/CD
%/NN
30/CD
to/TO
44/CD
days/NNS
;/:
8.25/CD
%/NN
45/CD
to/TO
59/CD
days/NNS
;/:
8.45/CD
%/NN
60/CD
to/TO
89/CD
days/NNS
;/:
8/CD
%/NN
90/CD
to/TO
119/CD
days/NNS
;/:
7.90/CD
%/NN
120/CD
to/TO
149/CD
days/NNS
;/:
7.80/CD
%/NN
150/CD
to/TO
179/CD
days/NNS
;/:
7.55/CD
%/NN
180/CD
to/TO
270/CD
days/NNS
./.
COMMERCIAL/JJ
PAPER/NN
:/:
High-grade/JJ
unsecured/JJ
notes/NNS
sold/VBN
through/IN
dealers/NNS
by/IN
major/JJ
corporations/NNS
in/IN
multiples/NNS
of/IN
$/$
1,000/CD
:/:
8.65/CD
%/NN
30/CD
days/NNS
;/:
8.575/CD
%/NN
60/CD
days/NNS
;/:
8.50/CD
%/NN
90/CD
days/NNS
./.
CERTIFICATES/NNS
OF/IN
DEPOSIT/NN
:/:
8.07/CD
%/NN
one/CD
month/NN
;/:
8.06/CD
%/NN
two/CD
months/NNS
;/:
8.04/CD
%/NN
three/CD
months/NNS
;/:
7.95/CD
%/NN
six/CD
months/NNS
;/:
7.88/CD
%/NN
one/CD
year/NN
./.
Average/JJ
of/IN
top/JJ
rates/NNS
paid/VBN
by/IN
major/JJ
New/NNP
York/NNP
banks/NNS
on/IN
primary/JJ
new/JJ
issues/NNS
of/IN
negotiable/JJ
C.D.s/NNS
,/,
usually/RB
on/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
and/CC
more/JJR
./.
The/DT
minimum/JJ
unit/NN
is/VBZ
$/$
100,000/CD
./.
Typical/JJ
rates/NNS
in/IN
the/DT
secondary/JJ
market/NN
:/:
8.60/CD
%/NN
one/CD
month/NN
;/:
8.55/CD
%/NN
three/CD
months/NNS
;/:
8.35/CD
%/NN
six/CD
months/NNS
./.
BANKERS/NNS
ACCEPTANCES/NNS
:/:
8.50/CD
%/NN
30/CD
days/NNS
;/:
8.48/CD
%/NN
60/CD
days/NNS
;/:
8.30/CD
%/NN
90/CD
days/NNS
;/:
8.15/CD
%/NN
120/CD
days/NNS
;/:
8.07/CD
%/NN
150/CD
days/NNS
;/:
7.95/CD
%/NN
180/CD
days/NNS
./.
Negotiable/JJ
,/,
bank-backed/JJ
business/NN
credit/NN
instruments/NNS
typically/RB
financing/VBG
an/DT
import/NN
order/NN
./.
LONDON/NNP
LATE/RB
EURODOLLARS/NNS
:/:
8/CD
3\/4/CD
%/NN
to/TO
8/CD
5\/8/CD
%/NN
one/CD
month/NN
;/:
8/CD
13\/16/CD
%/NN
to/TO
8/CD
11\/16/CD
%/NN
two/CD
months/NNS
;/:
8/CD
3\/4/CD
%/NN
to/TO
8/CD
5\/8/CD
%/NN
three/CD
months/NNS
;/:
8/CD
5\/8/CD
%/NN
to/TO
8/CD
1\/2/CD
%/NN
four/CD
months/NNS
;/:
8/CD
1\/2/CD
%/NN
to/TO
8/CD
7\/16/CD
%/NN
five/CD
months/NNS
;/:
8/CD
1\/2/CD
%/NN
to/TO
8/CD
3\/8/CD
%/NN
six/CD
months/NNS
./.
LONDON/NNP
INTERBANK/NN
OFFERED/VBN
RATES/NNS
LIBOR/NNP
8/CD
3\/4/CD
%/NN
one/CD
month/NN
;/:
8/CD
3\/4/CD
%/NN
three/CD
months/NNS
;/:
8/CD
1\/2/CD
%/NN
six/CD
months/NNS
;/:
8/CD
7\/16/CD
%/NN
one/CD
year/NN
./.
The/DT
average/NN
of/IN
interbank/NN
offered/VBD
rates/NNS
for/IN
dollar/NN
deposits/NNS
in/IN
the/DT
London/NNP
market/NN
based/VBN
on/IN
quotations/NNS
at/IN
five/CD
major/JJ
banks/NNS
./.
FOREIGN/NNP
PRIME/NNP
RATES/NNPS
:/:
Canada/NNP
13.50/CD
%/NN
;/:
Germany/NNP
9/CD
%/NN
;/:
Japan/NNP
4.875/CD
%/NN
;/:
Switzerland/NNP
8.50/CD
%/NN
;/:
Britain/NNP
15/CD
%/NN
./.
These/DT
rate/NN
indications/NNS
are/VBP
n't/RB
directly/RB
comparable/JJ
;/:
lending/VBG
practices/NNS
vary/VB
widely/RB
by/IN
location/NN
./.
TREASURY/NNP
BILLS/NNPS
:/:
Results/NNS
of/IN
the/DT
Monday/NNP
,/,
October/NNP
30/CD
,/,
1989/CD
,/,
auction/NN
of/IN
short-term/JJ
U.S./NNP
government/NN
bills/NNS
,/,
sold/VBN
at/IN
a/DT
discount/NN
from/IN
face/NN
value/NN
in/IN
units/NNS
of/IN
$/$
10,000/CD
to/TO
$/$
1/CD
million/CD
:/:
7.78/CD
%/NN
13/CD
weeks/NNS
;/:
7.62/CD
%/NN
26/CD
weeks/NNS
./.
FEDERAL/NNP
HOME/NNP
LOAN/NNP
MORTGAGE/NNP
CORP/NNP
./.
Freddie/NNP
Mac/NNP
yields/NNS
on/IN
30-year/JJ
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
./.
9.82/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
8.25/CD
%/NN
,/,
2/CD
%/NN
rate/NN
capped/JJ
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNPS
Inc/NNP
./.
FEDERAL/NNP
NATIONAL/NNP
MORTGAGE/NNP
ASSOCIATION/NNP
Fannie/NNP
Mae/NNP
yields/NNS
on/IN
30/CD
year/NN
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
par/NN
9.75/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
8.70/CD
%/NN
,/,
6\/2/CD
rate/NN
capped/JJ
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNPS
Inc/NNP
./.
MERRILL/NNP
LYNCH/NNP
READY/NNP
ASSETS/NNPS
TRUST/NNP
:/:
8.64/CD
%/NN
./.
Annualized/VBN
average/JJ
rate/NN
of/IN
return/NN
after/IN
expenses/NNS
for/IN
the/DT
past/JJ
30/CD
days/NNS
;/:
not/RB
a/DT
forecast/NN
of/IN
future/JJ
returns/NNS
./.
Robert/NNP
L./NNP
Bernstein/NNP
,/,
chairman/NN
and/CC
president/NN
of/IN
Random/NNP
House/NNP
Inc./NNP
,/,
announced/VBD
his/PRP$
resignation/NN
from/IN
the/DT
publishing/NN
house/NN
he/PRP
has/VBZ
run/VBN
for/IN
23/CD
years/NNS
./.
A/DT
successor/NN
was/VBD
n't/RB
named/VBN
,/,
which/WDT
fueled/VBD
speculation/NN
that/IN
Mr./NNP
Bernstein/NNP
may/MD
have/VB
clashed/VBN
with/IN
S.I./NNP
Newhouse/NNP
Jr./NNP
,/,
whose/WP$
family/NN
company/NN
,/,
Advance/NNP
Publications/NNPS
Inc./NNP
,/,
owns/VBZ
Random/NNP
House/NNP
./.
Abrupt/JJ
departures/NNS
are/VBP
n't/RB
unheard/JJ
of/IN
within/IN
the/DT
Newhouse/NNP
empire/NN
./.
In/IN
an/DT
interview/NN
,/,
Mr./NNP
Bernstein/NNP
said/VBD
his/PRP$
departure/NN
``/``
evolved/VBD
out/IN
of/IN
discussions/NNS
with/IN
Si/NNP
Newhouse/NNP
and/CC
that/DT
's/VBZ
the/DT
decision/NN
I/PRP
reached/VBD
./.
''/''
He/PRP
declined/VBD
to/TO
elaborate/VB
,/,
other/JJ
than/IN
to/TO
say/VB
,/,
``/``
It/PRP
just/RB
seemed/VBD
the/DT
right/JJ
thing/NN
to/TO
do/VB
at/IN
this/DT
minute/NN
./.
Sometimes/RB
you/PRP
just/RB
go/VBP
with/IN
your/PRP$
gut/NN
./.
''/''
Mr./NNP
Bernstein/NNP
said/VBD
he/PRP
will/MD
stay/VB
until/IN
Dec./NNP
31/CD
and/CC
work/VB
with/IN
his/PRP$
successor/NN
,/,
who/WP
is/VBZ
to/TO
be/VB
named/VBN
soon/RB
./.
Mr./NNP
Newhouse/NNP
,/,
meanwhile/RB
,/,
insisted/VBD
that/IN
he/PRP
is/VBZ
n't/RB
unhappy/JJ
with/IN
Mr./NNP
Bernstein/NNP
or/CC
the/DT
performance/NN
of/IN
Random/NNP
House/NNP
,/,
the/DT
largest/JJS
trade/NN
publishing/VBG
house/NN
in/IN
the/DT
U.S/NNP
./.
The/DT
company/NN
said/VBD
the/DT
publisher/NN
's/POS
annual/JJ
sales/NNS
volume/NN
increased/VBD
to/TO
$/$
800/CD
million/CD
from/IN
$/$
40/CD
million/CD
during/IN
Mr./NNP
Bernstein/NNP
's/POS
tenure/NN
./.
``/``
Bob/NNP
has/VBZ
handled/VBN
the/DT
extraordinary/JJ
growth/NN
of/IN
the/DT
company/NN
quite/RB
brilliantly/RB
,/,
''/''
said/VBD
Mr./NNP
Newhouse/NNP
./.
``/``
The/DT
company/NN
is/VBZ
doing/VBG
well/RB
,/,
it/PRP
's/VBZ
stable/JJ
,/,
it/PRP
's/VBZ
got/VBN
good/JJ
people/NNS
./.
Bob/NNP
has/VBZ
an/DT
agenda/NN
and/CC
this/DT
seemed/VBD
like/IN
the/DT
natural/JJ
time/NN
./.
''/''
Publishing/NN
officials/NNS
believe/VBP
that/IN
while/IN
Random/NNP
House/NNP
has/VBZ
enjoyed/VBN
spectacular/JJ
growth/NN
and/CC
has/VBZ
smoothly/RB
integrated/VBN
many/JJ
acquisitions/NNS
in/IN
recent/JJ
years/NNS
,/,
some/DT
of/IN
the/DT
bigger/JJR
ones/NNS
have/VBP
n't/RB
been/VBN
absorbed/VBN
so/RB
easily/RB
./.
Crown/NNP
Publishing/NNP
Group/NNP
,/,
acquired/VBN
last/JJ
year/NN
,/,
is/VBZ
said/VBN
to/TO
be/VB
turning/VBG
in/IN
disappointing/JJ
results/NNS
./.
As/IN
a/DT
private/JJ
company/NN
,/,
Random/NNP
House/NNP
does/VBZ
n't/RB
report/VB
its/PRP$
earnings/NNS
./.
Mr./NNP
Bernstein/NNP
,/,
who/WP
succeeded/VBD
Bennett/NNP
Cerf/NNP
,/,
has/VBZ
been/VBN
only/RB
the/DT
second/JJ
president/NN
of/IN
Random/NNP
House/NNP
since/IN
it/PRP
was/VBD
founded/VBN
in/IN
1925/CD
./.
Speculation/NN
on/IN
his/PRP$
successor/NN
centers/VBZ
on/IN
a/DT
number/NN
of/IN
division/NN
heads/NNS
at/IN
the/DT
house/NN
./.
Possible/JJ
candidates/NNS
include/VBP
Susan/NNP
Petersen/NNP
,/,
president/NN
of/IN
Ballantine\/Del/NNP
Rey\/Fawcett/NNP
,/,
Random/NNP
House/NNP
's/POS
huge/JJ
and/CC
successful/JJ
paperback/NN
division/NN
./.
Some/DT
say/VBP
Anthony/NNP
Cheetham/NNP
,/,
head/NN
of/IN
a/DT
recently/RB
acquired/VBN
British/JJ
company/NN
,/,
Century/NNP
Hutchinson/NNP
,/,
could/MD
be/VB
chosen/VBN
./.
There/EX
is/VBZ
also/RB
speculation/NN
that/IN
Mr./NNP
Newhouse/NNP
could/MD
bring/VB
in/IN
a/DT
powerhouse/NN
businessman/NN
or/CC
another/DT
Newhouse/NNP
family/NN
member/NN
to/TO
run/VB
the/DT
business/NN
side/NN
,/,
in/IN
combination/NN
with/IN
a/DT
publishing/NN
executive/NN
like/IN
Robert/NNP
Gottlieb/NNP
,/,
who/WP
left/VBD
Random/NNP
House/NNP
's/POS
Alfred/NNP
A./NNP
Knopf/NNP
to/TO
run/VB
the/DT
New/NNP
Yorker/NNP
,/,
also/RB
owned/VBN
by/IN
the/DT
Newhouse/NNP
family/NN
./.
Not/RB
included/VBN
on/IN
the/DT
most-likely-successor/JJ
list/NN
are/VBP
Joni/NNP
Evans/NNP
,/,
recruited/VBN
two/CD
years/NNS
ago/IN
to/TO
be/VB
publisher/NN
of/IN
adult/NN
trade/NN
books/NNS
for/IN
Random/NNP
House/NNP
,/,
and/CC
Sonny/NNP
Mehta/NNP
,/,
president/NN
of/IN
the/DT
prestigious/JJ
Alfred/NNP
A./NNP
Knopf/NNP
unit/NN
./.
When/WRB
Ms./NNP
Evans/NNP
took/VBD
her/PRP
job/NN
,/,
several/JJ
important/JJ
divisions/NNS
that/WDT
had/VBD
reported/VBN
to/TO
her/PRP$
predecessor/NN
were/VBD
n't/RB
included/VBN
partly/RB
because/IN
she/PRP
did/VBD
n't/RB
wish/NN
to/TO
be/VB
a/DT
full-time/JJ
administrator/NN
./.
Mr./NNP
Mehta/NNP
is/VBZ
widely/RB
viewed/VBN
as/IN
a/DT
brilliant/JJ
editor/NN
but/CC
a/DT
less-than-brilliant/JJ
administrator/NN
and/CC
his/PRP$
own/JJ
departure/NN
was/VBD
rumored/VBN
recently/RB
./.
Mr./NNP
Bernstein/NNP
,/,
a/DT
tall/JJ
,/,
energetic/JJ
man/NN
who/WP
is/VBZ
widely/RB
respected/VBN
as/IN
a/DT
publishing/NN
executive/NN
,/,
has/VBZ
spent/VBN
much/JJ

of/IN
his/PRP$
time/NN
in/IN
recent/JJ
years/NNS
on/IN
human/JJ
rights/NNS
issues/NNS
./.
Congress/NNP
learned/VBD
during/IN
the/DT
Reagan/NNP
administration/NN
that/IN
it/PRP
could/MD
intimidate/VB
the/DT
executive/JJ
branch/NN
by/IN
uttering/VBG
again/RB
and/CC
again/RB
the/DT
same/JJ
seven/CD
words/NNS
:/:
``/``
Provided/VBN
,/,
that/IN
no/DT
funds/NNS
shall/MD
be/VB
spent/VBN
.../:
./.
''/''
This/DT
phrase/NN
once/RB
again/RB
is/VBZ
found/VBN
throughout/IN
the/DT
many/JJ
appropriations/NNS
bills/NNS
now/RB
moving/VBG
through/IN
Congress/NNP
./.
It/PRP
signals/VBZ
Congress/NNP
's/POS
attempt/NN
,/,
under/IN
the/DT
pretext/NN
of/IN
guarding/VBG
the/DT
public/JJ
purse/NN
,/,
to/TO
deny/VB
the/DT
president/NN
the/DT
funding/NN
necessary/JJ
to/TO
execute/VB
certain/JJ
of/IN
his/PRP$
duties/NNS
and/CC
prerogatives/NNS
specified/VBN
in/IN
Article/NNP
II/NNP
of/IN
the/DT
Constitution/NNP
./.
This/DT
species/NN
of/IN
congressional/JJ
action/NN
is/VBZ
predicated/VBN
on/IN
an/DT
interpretation/NN
of/IN
the/DT
appropriations/NNS
clause/NN
that/WDT
is/VBZ
erroneous/JJ
and/CC
unconstitutional/JJ
./.
The/DT
appropriations/NNS
clause/NN
states/VBZ
that/IN
``/``
No/DT
Money/NN
shall/MD
be/VB
drawn/VBN
from/IN
the/DT
Treasury/NNP
,/,
but/CC
in/IN
Consequence/NN
of/IN
Appropriations/NNS
made/VBN
by/IN
Law/NN
.../:
./.
''/''
The/DT
prevailing/VBG
interpretation/NN
of/IN
the/DT
clause/NN
on/IN
Capitol/NNP
Hill/NNP
is/VBZ
that/IN
it/PRP
gives/VBZ
Congress/NNP
an/DT
omnipresent/JJ
veto/NN
over/IN
every/DT
conceivable/JJ
action/NN
of/IN
the/DT
president/NN
through/IN
the/DT
ability/NN
to/TO
withhold/VB
funding/NN
./.
This/DT
interpretation/NN
was/VBD
officially/RB
endorsed/VBN
by/IN
Congress/NNP
in/IN
1987/CD
in/IN
the/DT
Iran-Contra/NNP
Report/NNP
./.
As/IN
partisans/NNS
of/IN
congressional/JJ
power/NN
understand/VBP
,/,
a/DT
``/``
power/NN
of/IN
the/DT
purse/NN
''/''
so/RB
broadly/RB
construed/VBN
would/MD
emasculate/VB
the/DT
presidency/NN
and/CC
swallow/VB
the/DT
principle/NN
of/IN
separation/NN
of/IN
powers/NNS
./.
It/PRP
is/VBZ
not/RB
supported/VBN
by/IN
the/DT
text/NN
or/CC
history/NN
of/IN
the/DT
Constitution/NNP
./.
The/DT
framers/NNS
hardly/RB
discussed/VBD
the/DT
appropriations/NNS
clause/NN
at/IN
the/DT
Constitutional/NNP
Convention/NNP
of/IN
1787/CD
,/,
according/VBG
to/TO
Madison/NNP
's/POS
notes/NNS
./.
To/TO
the/DT
extent/NN
they/PRP
did/VBD
,/,
their/PRP$
concern/NN
was/VBD
to/TO
ensure/VB
fiscal/JJ
accountability/NN
./.
Moreover/RB
,/,
the/DT
framers/NNS
believed/VBD
that/IN
the/DT
nation/NN
needed/VBD
a/DT
unitary/JJ
executive/NN
with/IN
the/DT
independence/NN
and/CC
resources/NNS
to/TO
perform/VB
the/DT
executive/NN
functions/NNS
that/IN
the/DT
Confederation/NNP
Congress/NNP
had/VBD
performed/VBN
poorly/RB
under/IN
the/DT
Articles/NNPS
of/IN
Confederation/NNP
./.
It/PRP
would/MD
contradict/VB
that/DT
objective/NN
if/IN
the/DT
appropriations/NNS
clause/NN
a/DT
limitation/NN
on/IN
legislative/JJ
power/NN
the/DT
president/NN
on/IN
Congress/NNP
's/POS
short/JJ
leash/NN
,/,
making/VBG
the/DT
executive/NN
consist/VBP
of/IN
the/DT
president/NN
and/CC
every/DT
member/NN
of/IN
Congress/NNP
./.
As/IN
it/PRP
went/VBD
to/TO
the/DT
conference/NN
panel/NN
now/RB
deliberating/VBG
,/,
the/DT
appropriations/NNS
bill/NN
for/IN
the/DT
executive/JJ
office/NN
of/IN
the/DT
president/NN
for/IN
fiscal/JJ
1990/CD
contained/VBD
some/DT
breathtaking/JJ
attempts/NNS
by/IN
Congress/NNP
to/TO
rewrite/VB
the/DT
Constitution/NNP
under/IN
the/DT
pretext/NN
of/IN
protecting/VBG
the/DT
public/NN
's/POS
money/NN
./.
During/IN
the/DT
coming/VBG
weeks/NNS
,/,
President/NNP
Bush/NNP
must/MD
decide/VB
whether/IN
to/TO
veto/VB
the/DT
bills/NNS
containing/VBG
them/PRP
--/:
or/CC
,/,
alternatively/RB
,/,
to/TO
sign/VB
these/DT
bills/NNS
into/IN
law/NN
with/IN
a/DT
statement/NN
declaring/VBG
their/PRP$
intrusions/NNS
on/IN
executive/JJ
power/NN
to/TO
be/VB
in/IN
violation/NN
of/IN
Article/NNP
II/NNP
,/,
and/CC
thus/RB
void/JJ
and/CC
severable/JJ
./.
The/DT
1990/CD
appropriations/NNS
legislation/NN
attempts/VBZ
to/TO
strip/VB
the/DT
president/NN
of/IN
his/PRP$
powers/NNS
to/TO
make/VB
certain/JJ
appointments/NNS
as/IN
provided/VBN
by/IN
Article/NNP
II/NNP
./.
Article/NNP
II/NNP
places/VBZ
on/IN
the/DT
president/NN
the/DT
duty/NN
to/TO
nominate/VB
,/,
``/``
and/CC
by/IN
and/CC
with/IN
the/DT
Advice/NNP
and/CC
Consent/NNP
of/IN
the/DT
Senate/NNP
''/''
appoint/VB
,/,
ambassadors/NNS
,/,
judges/NNS
,/,
and/CC
other/JJ
officers/NNS
of/IN
the/DT
U.S/NNP
./.
It/PRP
also/RB
empowers/VBZ
the/DT
president/NN
to/TO
make/VB
recess/NN
appointments/NNS
,/,
without/IN
Senate/NNP
approval/NN
:/:
``/``
The/DT
President/NNP
shall/MD
have/VB
Power/NN
to/TO
fill/VB
up/IN
all/DT
Vacancies/NNS
that/WDT
may/MD
happen/VB
during/IN
the/DT
Recess/NN
of/IN
the/DT
Senate/NNP
,/,
by/IN
granting/VBG
Commissions/NNS
which/WDT
shall/MD
expire/VB
at/IN
the/DT
End/NN
of/IN
their/PRP$
next/JJ
Session/NN
./.
''/''
Yet/RB
Section/NNP
605/CD
of/IN
the/DT
appropriations/NNS
bill/NN
for/IN
the/DT
executive/JJ
office/NN
provides/VBZ
:/:
``/``
No/DT
part/NN
of/IN
any/DT
appropriation/NN
for/IN
the/DT
current/JJ
fiscal/JJ
year/NN
contained/VBN
in/IN
this/DT
or/CC
any/DT
other/JJ
Act/NN
shall/MD
be/VB
paid/VBN
to/TO
any/DT
person/NN
for/IN
the/DT
filling/NN
of/IN
any/DT
position/NN
for/IN
which/WDT
he/PRP
or/CC
she/PRP
has/VBZ
been/VBN
nominated/VBN
after/IN
the/DT
Senate/NNP
has/VBZ
voted/VBN
not/RB
to/TO
approve/VB
the/DT
nomination/NN
of/IN
said/VBN
person/NN
./.
''/''
Thus/RB
,/,
with/IN
one/CD
brief/JJ
passage/NN
in/IN
an/DT
appropriations/NNS
bill/NN
,/,
Congress/NNP
repeals/VBZ
the/DT
president/NN
's/POS
power/NN
to/TO
make/VB
recess/NN
appointments/NNS
under/IN
Article/NNP
II/NNP
./.
Section/NN
605/CD
also/RB
imposes/VBZ
unconstitutional/JJ
conditions/NNS
on/IN
the/DT
president/NN
's/POS
ability/NN
to/TO
nominate/VB
candidates/NNS
of/IN
his/PRP$
choosing/NN
./.
The/DT
language/NN
of/IN
the/DT
appropriations/NNS
rider/NN
implies/VBZ
that/IN
any/DT
nomination/NN
to/TO
any/DT
position/NN
of/IN
a/DT
rejected/VBN
nominee/NN
will/MD
result/VB
in/IN
the/DT
president/NN
being/VBG
denied/VBN
funding/VBG
to/TO
pay/VB
that/DT
person/NN
's/POS
salary/NN
./.
The/DT
president/NN
could/MD
probably/RB
not/RB
avoid/VB
this/DT
restriction/NN
by/IN
choosing/VBG
people/NNS
willing/JJ
to/TO
serve/VB
without/IN
pay/NN
,/,
because/IN
the/DT
Anti-Deficiency/NNP
Act/NNP
prohibits/VBZ
voluntary/JJ
service/NN
to/TO
the/DT
government/NN
./.
The/DT
1990/CD
appropriations/NNS
bills/NNS
also/RB
contain/VBP
a/DT
number/NN
of/IN
``/``
muzzling/JJ
''/''
provisions/NNS
that/WDT
violate/VBP
the/DT
recommendation/NN
clause/NN
in/IN
Article/NNP
II/NNP
of/IN
the/DT
Constitution/NNP
./.
Muzzling/JJ
provisions/NNS
,/,
which/WDT
might/MD
be/VB
called/VBN
``/``
blindfold/NN
laws/NNS
''/''
as/IN
well/RB
,/,
prevent/VBP
the/DT
executive/JJ
branch/NN
from/IN
even/RB
looking/VBG
at/IN
certain/JJ
policy/NN
options/NNS
,/,
let/VB
alone/RB
from/IN
recommending/VBG
them/PRP
to/TO
Congress/NNP
./.
Such/JJ
laws/NNS
violate/VBP
the/DT
provision/NN
in/IN
Article/NNP
II/NNP
that/WDT
requires/VBZ
the/DT
president/NN
to/TO
make/VB
recommendations/NNS
to/TO
Congress/NNP
,/,
but/CC
which/WDT
gives/VBZ
the/DT
president/NN
the/DT
discretion/NN
to/TO
select/VB
the/DT
subject/JJ
matter/NN
of/IN
those/DT
recommendations/NNS
./.
Typically/RB
,/,
these/DT
laws/NNS
seek/VBP
to/TO
prevent/VB
executive/JJ
branch/NN
officials/NNS
from/IN
inquiring/VBG
into/IN
whether/IN
certain/JJ
federal/JJ
programs/NNS
make/VBP
any/DT
economic/JJ
sense/NN
or/CC
proposing/VBG
more/JJR
market-oriented/JJ
alternatives/NNS
to/TO
regulations/NNS
./.
Probably/RB
the/DT
most/RBS
egregious/JJ
example/NN
is/VBZ
a/DT
proviso/NN
in/IN
the/DT
appropriations/NNS
bill/NN
for/IN
the/DT
executive/NN
office/NN
that/WDT
prevents/VBZ
the/DT
president/NN
's/POS
Office/NNP
of/IN
Management/NNP
and/CC
Budget/NNP
from/IN
subjecting/VBG
agricultural/JJ
marketing/NN
orders/NNS
to/TO
any/DT
cost-benefit/JJ
scrutiny/NN
./.
There/EX
is/VBZ
something/NN
inherently/RB
suspect/JJ
about/IN
Congress/NNP
's/POS
prohibiting/VBG
the/DT
executive/NN
from/IN
even/RB
studying/VBG
whether/IN
public/JJ
funds/NNS
are/VBP
being/VBG
wasted/VBN
in/IN
some/DT
favored/VBN
program/NN
or/CC
other/JJ
./.
Perhaps/RB
none/NN
of/IN
the/DT
unconstitutional/JJ
conditions/NNS
contained/VBN
in/IN
the/DT
appropriations/NNS
bills/NNS
for/IN
fiscal/JJ
1990/CD
better/RBR
illustrates/VBZ
Congress/NNP
's/POS
attempt/NN
to/TO
usurp/VB
executive/JJ
power/NN
than/IN
Section/NN
609/CD
of/IN
the/DT
executive-office/NN
bill/NN
:/:
``/``
None/NN
of/IN
the/DT
funds/NNS
made/VBN
available/JJ
pursuant/JJ
to/TO
the/DT
provisions/NNS
of/IN
this/DT
Act/NN
shall/MD
be/VB
used/VBN
to/TO
implement/VB
,/,
administer/VB
,/,
or/CC
enforce/VB
any/DT
regulation/NN
which/WDT
has/VBZ
been/VBN
disapproved/VBN
pursuant/JJ
to/TO
a/DT
resolution/NN
of/IN
disapproval/NN
duly/RB
adopted/VBN
in/IN
accordance/NN
with/IN
the/DT
applicable/JJ
law/NN
of/IN
the/DT
United/NNP
States/NNPS
./.
''/''
This/DT
provision/NN
amounts/VBZ
to/TO
a/DT
legislative/JJ
veto/NN
over/IN
the/DT
president/NN
's/POS
execution/NN
of/IN
the/DT
law/NN
,/,
since/IN
a/DT
one-house/JJ
resolution/NN
could/MD
be/VB
said/VBN
to/TO
be/VB
``/``
duly/RB
adopted/VBN
''/''
even/RB
though/IN
it/PRP
would/MD
require/VB
neither/DT
bicameral/JJ
action/NN
in/IN
Congress/NNP
nor/CC
presentation/NN
to/TO
the/DT
president/NN
for/IN
his/PRP$
signature/NN
or/CC
veto/NN
./.
The/DT
Supreme/NNP
Court/NNP
's/POS
decision/NN
in/IN
INS/NNP
v./CC
Chadha/NNP
held/VBD
that/IN
legislative/JJ
vetoes/NNS
are/VBP
unconstitutional/JJ
./.
President/NNP
Bush/NNP
should/MD
veto/VB
appropriations/NNS
acts/NNS
that/WDT
contain/VBP
these/DT
kinds/NNS
of/IN
unconstitutional/JJ
conditions/NNS
on/IN
the/DT
president/NN
's/POS
ability/NN
to/TO
discharge/VB
his/PRP$
duties/NNS
and/CC
exercise/VB
his/PRP$
prerogatives/NNS
./.
If/IN
President/NNP
Bush/NNP
fails/VBZ
to/TO
do/VB
so/RB
in/IN
his/PRP$
first/JJ
year/NN
,/,
he/PRP
will/MD
invite/VB
Congress/NNP
,/,
for/IN
the/DT
remainder/NN
of/IN
his/PRP$
presidency/NN
,/,
to/TO
rewrite/VB
Article/NNP
II/NNP
of/IN
the/DT
Constitution/NNP
to/TO
suit/VB
its/PRP$
purposes/NNS
./.
What/WP
becomes/VBZ
custom/NN
in/IN
the/DT
Bush/NNP
administration/NN
will/MD
only/RB
become/VB
more/RBR
difficult/JJ
for/IN
future/JJ
presidents/NNS
,/,
including/VBG
Democrats/NNPS
,/,
to/TO
undo/VB
./.
President/NNP
Reagan/NNP
learned/VBD
that/DT
lesson/NN
./.
By/IN
1987/CD
,/,
then-Speaker/JJ
Jim/NNP
Wright/NNP
was/VBD
discussing/VBG
arms/NNS
control/NN
in/IN
Moscow/NNP
with/IN
Mikhail/NNP
Gorbachev/NNP
and/CC
then/RB
attempting/VBG
to/TO
direct/VB
the/DT
president/NN
,/,
through/IN
an/DT
appropriations/NNS
rider/NN
,/,
to/TO
treat/VB
the/DT
Soviets/NNPS
as/IN
though/IN
the/DT
Senate/NNP
had/VBD
ratified/VBN
SALT/NNP
II/NNP
./.
If/IN
a/DT
veto/NN
is/VBZ
unworkable/JJ
because/IN
it/PRP
would/MD
leave/VB
part/NN
of/IN
the/DT
executive/JJ
branch/NN
unfunded/JJ
,/,
the/DT
president/NN
could/MD
sign/VB
the/DT
appropriations/NNS
bills/NNS
into/IN
law/NN
and/CC
assert/VB
a/DT
power/NN
of/IN
excision/NN
,/,
declaring/VBG
the/DT
rider/NN
restricting/VBG
his/PRP$
Article/NNP
II/NNP
powers/NNS
to/TO
be/VB
unconstitutional/JJ
and/CC
severable/JJ
./.
The/DT
Constitution/NNP
does/VBZ
not/RB
expressly/RB
give/VB
the/DT
president/NN
such/JJ
power/NN
./.
However/RB
,/,
the/DT
president/NN
does/VBZ
have/VB
a/DT
duty/NN
not/RB
to/TO
violate/VB
the/DT
Constitution/NNP
./.
The/DT
question/NN
is/VBZ
whether/IN
his/PRP$
only/JJ
means/NNS
of/IN
defense/NN
is/VBZ
the/DT
veto/NN
./.
Excision/NN
of/IN
appropriations/NNS
riders/NNS
that/WDT
trespass/VBP
on/IN
the/DT
president/NN
's/POS
duties/NNS
and/CC
prerogative/NN
under/IN
Article/NNP
II/NNP
would/MD
be/VB
different/JJ
from/IN
the/DT
line-item/JJ
veto/NN
./.
As/IN
discussed/VBN
in/IN
the/DT
context/NN
of/IN
controlling/VBG
federal/JJ
spending/NN
,/,
the/DT
line-item/JJ
veto/NN
is/VBZ
characterized/VBN
as/IN
a/DT
way/NN
for/IN
the/DT
president/NN
to/TO
excise/VB
perfectly/RB
constitutional/JJ
provisions/NNS
in/IN
a/DT
spending/NN
bill/NN
that/WDT
are/VBP
objectionable/JJ
merely/RB
because/IN
they/PRP
conflict/VBP
with/IN
his/PRP$
policy/NN
objectives/NNS
./.
The/DT
excision/NN
of/IN
unconstitutional/JJ
conditions/NNS
in/IN
an/DT
appropriations/NNS
bill/NN
would/MD
be/VB
a/DT
power/NN
of/IN
far/RB
more/RBR
limited/VBN
applicability/NN
./.
One/CD
could/MD
argue/VB
that/IN
it/PRP
is/VBZ
not/RB
an/DT
assertion/NN
of/IN
a/DT
item/NN
veto/NN
at/IN
all/DT
for/IN
the/DT
president/NN
,/,
by/IN
exerting/VBG
a/DT
power/NN
of/IN
excision/NN
,/,
to/TO
resist/VB
unconstitutional/JJ
conditions/NNS
in/IN
legislation/NN
that/WDT
violate/VBP
the/DT
separation/NN
of/IN
powers/NNS
./.
There/EX
is/VBZ
no/DT
downside/NN
if/IN
the/DT
president/NN
asserts/VBZ
a/DT
right/NN
of/IN
excision/NN
over/IN
unconstitutional/JJ
conditions/NNS
in/IN
the/DT
fiscal/JJ
1990/CD
appropriations/NNS
bills/NNS
./.
If/IN
Congress/NNP
does/VBZ
nothing/NN
,/,
President/NNP
Bush/NNP
will/MD
have/VB
won/VBN
./.
If/IN
Congress/NNP
takes/VBZ
the/DT
dispute/NN
to/TO
the/DT
Supreme/NNP
Court/NNP
it/PRP
can/MD
establish/VB
standing/NN
to/TO
sue/VB
)/)
,/,
President/NNP
Bush/NNP
might/MD
win/VB
./.
In/IN
that/DT
case/NN
,/,
he/PRP
might/MD
receive/VB
an/DT
opinion/NN
from/IN
the/DT
court/NN
that/WDT
is/VBZ
a/DT
vindication/NN
of/IN
the/DT
president/NN
's/POS
right/NN
to/TO
perform/VB
the/DT
duties/NNS
and/CC
exercise/VB
the/DT
prerogatives/NNS
the/DT
framers/NNS
thought/VBD
should/MD
be/VB
entrusted/VBN
to/TO
the/DT
executive/NN
./.
If/IN
President/NNP
Bush/NNP
loses/VBZ
at/IN
the/DT
court/NN
,/,
it/PRP
might/MD
be/VB
disappointing/JJ
,/,
as/IN
Morrison/NNP
v./CC
Olson/NNP
was/VBD
for/IN
the/DT
Reagan/NNP
administration/NN
./.
But/CC
the/DT
presidency/NN
would/MD
be/VB
no/RB
worse/JJR
off/IN
than/IN
it/PRP
is/VBZ
now/RB
./.
Moreover/RB
,/,
the/DT
electorate/NN
would/MD
have/VB
received/VBN
a/DT
valuable/JJ
civics/NNS
lesson/NN
in/IN
how/WRB
the/DT
separation/NN
of/IN
powers/NNS
works/VBZ
in/IN
practice/NN
./.
As/IN
it/PRP
stands/VBZ
now/RB
,/,
Congress/NNP
presumes/VBZ
after/IN
the/DT
Reagan/NNP
administration/NN
that/IN
the/DT
White/NNP
House/NNP
will/MD
take/VB
unconstitutional/JJ
provisions/NNS
in/IN
appropriations/NNS
bills/NNS
lying/VBG
down/IN
./.
President/NNP
Bush/NNP
should/MD
set/VB
things/NNS
straight/RB
./.
If/IN
he/PRP
does/VBZ
not/RB
,/,
he/PRP
will/MD
help/VB
realize/VB
Madison/NNP
's/POS
fear/NN
in/IN
The/DT
Federalist/NNP
No./NN
48/CD
of/IN
a/DT
legislature/NN
``/``
everywhere/RB
extending/VBG
the/DT
sphere/NN
of/IN
its/PRP$
activity/NN
and/CC
drawing/VBG
all/DT
powers/NNS
into/IN
its/PRP$
impetuous/JJ
vortex/NN
./.
''/''
Mr./NNP
Sidak/NNP
served/VBD
as/IN
an/DT
attorney/NN
in/IN
the/DT
Reagan/NNP
administration/NN
./.
His/PRP$
longer/JJR
analysis/NN
of/IN
executive/JJ
power/NN
and/CC
the/DT
appropriations/NNS
clause/NN
is/VBZ
to/TO
appear/VB
in/IN
the/DT
Duke/NNP
Law/NNP
Journal/NNP
later/JJ
this/DT
year/NN
./.
Despite/IN
one/CD
of/IN
the/DT
most/RBS
devastating/JJ
droughts/NNS
on/IN
record/NN
,/,
net/JJ
cash/NN
income/NN
in/IN
the/DT
Farm/NNP
Belt/NNP
rose/VBD
to/TO
a/DT
new/JJ
high/NN
of/IN
$/$
59.9/CD
billion/CD
last/JJ
year/NN
./.
The/DT
previous/JJ
record/NN
was/VBD
$/$
57.7/CD
billion/CD
in/IN
1987/CD
,/,
according/VBG
to/TO
the/DT
Agriculture/NNP
Department/NNP
./.
Net/JJ
cash/NN
income/NN
--/:
the/DT
amount/NN
left/VBN
in/IN
farmers/NNS
'/POS
pockets/NNS
after/IN
deducting/VBG
expenses/NNS
from/IN
gross/JJ
cash/NN
income/NN
--/:
increased/VBD
in/IN
33/CD
states/NNS
in/IN
1988/CD
,/,
as/IN
the/DT
drought/NN
cut/VBD
into/IN
crop/NN
yields/NNS
and/CC
drove/VBD
up/IN
commodity/NN
prices/NNS
,/,
the/DT
department/NN
's/POS
Economic/NNP
Research/NNP
Service/NNP
reported/VBD
yesterday/NN
./.
Most/JJS
of/IN
those/DT
states/NNS
set/VBP
farm/NN
income/NN
records/NNS
./.
The/DT
worst/JJS
crop/NN
damage/NN
occurred/VBD
in/IN
the/DT
Midwestern/NNP
Corn/NNP
Belt/NNP
and/CC
the/DT
northern/JJ
Great/NNP
Plains/NNPS
./.
What/WP
saved/VBD
many/JJ
farmers/NNS
from/IN
a/DT
bad/JJ
year/NN
was/VBD
the/DT
opportunity/NN
to/TO
reclaim/VB
large/JJ
quantities/NNS
of/IN
grain/NN
and/CC
other/JJ
crops/NNS
that/IN
they/PRP
had/VBD
``/``
mortgaged/VBN
''/''
to/TO
the/DT
government/NN
under/IN
price-support/JJ
loan/NN
programs/NNS
./.
With/IN
prices/NNS
soaring/VBG
,/,
they/PRP
were/VBD
able/JJ
to/TO
sell/VB
the/DT
reclaimed/VBN
commodities/NNS
at/IN
``/``
considerable/JJ
profit/NN
,/,
''/''
the/DT
agency/NN
's/POS
240-page/JJ
report/NN
said/VBD
./.
In/IN
less/JJR
parched/VBN
areas/NNS
,/,
meanwhile/RB
,/,
farmers/NNS
who/WP
had/VBD
little/JJ
or/CC
no/DT
loss/NN
of/IN
production/NN
profited/VBD
greatly/RB
from/IN
the/DT
higher/JJR
prices/NNS
./.
To/TO
the/DT
surprise/NN
of/IN
some/DT
analysts/NNS
,/,
net/JJ
cash/NN
income/NN
rose/VBD
in/IN
some/DT
of/IN
the/DT
hardest-hit/JJ
states/NNS
,/,
including/VBG
Indiana/NNP
,/,
Illinois/NNP
,/,
Nebraska/NNP
and/CC
the/DT
Dakotas/NNPS
./.
Analysts/NNS
attributed/VBD
the/DT
increases/NNS
partly/RB
to/TO
the/DT
$/$
4/CD
billion/CD
disaster-assistance/JJ
package/NN
enacted/VBN
by/IN
Congress/NNP
./.
Last/JJ
year/NN
's/POS
record/NN
net/NN
cash/NN
income/NN
confirms/VBZ
the/DT
farm/NN
sector/NN
's/POS
rebound/NN
from/IN
the/DT
agricultural/JJ
depression/NN
of/IN
the/DT
early/JJ
1980s/CD
./.
It/PRP
also/RB
helps/VBZ
explain/VB
the/DT
reluctance/NN
of/IN
the/DT
major/JJ
farm/NN
lobbies/NNS
and/CC
many/JJ
lawmakers/NNS
to/TO
make/VB
any/DT
significant/JJ
changes/NNS
in/IN
the/DT
1985/CD
farm/NN
program/NN
next/IN
year/NN
./.
Commodity/NN
prices/NNS
have/VBP
been/VBN
rising/VBG
in/IN
recent/JJ
years/NNS
,/,
with/IN
the/DT
farm/NN
price/NN
index/NN
hitting/VBG
record/NN
peaks/NNS
earlier/JJR
this/DT
year/NN
,/,
as/IN
the/DT
government/NN
curtailed/VBD
production/NN
with/IN
land-idling/JJ
programs/NNS
to/TO
reduce/VB
price-depressing/JJ
surpluses/NNS
./.
At/IN
the/DT
same/JJ
time/NN
,/,
export/NN
demand/NN
for/IN
U.S./NNP
wheat/NN
,/,
corn/NN
and/CC
other/JJ
commodities/NNS
strengthened/VBD
,/,
said/VBD
Keith/NNP
Collins/NNP
,/,
a/DT
department/NN
analyst/NN
./.
Farmers/NNS
also/RB
benefited/VBD
from/IN
strong/JJ
livestock/NN
prices/NNS
,/,
as/IN
the/DT
nation/NN
's/POS
cattle/NNS
inventory/NN
dropped/VBD
close/RB
to/TO
a/DT
30-year/JJ
low/NN
./.
``/``
All/DT
of/IN
these/DT
forces/NNS
came/VBD
together/RB
in/IN
1988/CD
to/TO
benefit/VB
agriculture/NN
,/,
''/''
Mr./NNP
Collins/NNP
said/VBD
./.
California/NNP
led/VBD
the/DT
nation/NN
with/IN
$/$
6.5/CD
billion/CD
in/IN
net/JJ
cash/NN
income/NN
last/JJ
year/NN
,/,
followed/VBN
by/IN
Texas/NNP
,/,
$/$
3.9/CD
billion/CD
;/:
Iowa/NNP
,/,
$/$
3.4/CD
billion/CD
;/:
Florida/NNP
,/,
$/$
3.1/CD
billion/CD
;/:
and/CC
Minnesota/NNP
,/,
$/$
2.7/CD
billion/CD
./.
Iowa/NNP
and/CC
Minnesota/NNP
were/VBD
among/IN
the/DT
few/JJ
major/JJ
farm/NN
states/NNS
to/TO
log/VB
a/DT
decline/NN
in/IN
net/JJ
cash/NN
income/NN
./.
Despite/IN
federal/JJ
disaster/NN
relief/NN
,/,
the/DT
drought/NN
of/IN
1988/CD
was/VBD
a/DT
severe/JJ
financial/JJ
setback/NN
for/IN
an/DT
estimated/VBN
10,000/CD
to/TO
15,000/CD
farmers/NNS
,/,
according/VBG
to/TO
the/DT
department/NN
./.
Many/JJ
lost/VBD
their/PRP$
farms/NNS
./.
Department/NN
economists/NNS
do/VBP
n't/RB
expect/VB
1989/CD
to/TO
be/VB
as/RB
good/JJ
a/DT
year/NN
as/IN
1988/CD
was/VBD
./.
Indeed/RB
,/,
net/JJ
cash/NN
income/NN
is/VBZ
likely/JJ
to/TO
fall/VB
this/DT
year/NN
as/IN
farm/NN
expenses/NNS
rise/VBP
and/CC
government/NN
payments/NNS
to/TO
farmers/NNS
decline/VBP
./.
At/IN
the/DT
same/JJ
time/NN
,/,
an/DT
increase/NN
of/IN
land/NN
under/IN
cultivation/NN
after/IN
the/DT
drought/NN
has/VBZ
boosted/VBN
production/NN
of/IN
corn/NN
,/,
soybeans/NNS
and/CC
other/JJ
commodities/NNS
,/,
causing/VBG
a/DT
fall/NN
in/IN
prices/NNS
that/WDT
has/VBZ
been/VBN
only/RB
partly/RB
cushioned/VBN
by/IN
heavy/JJ
grain/NN
buying/NN
by/IN
the/DT
Soviets/NNPS
./.
Last/JJ
year/NN
,/,
government/NN
payments/NNS
to/TO
farmers/NNS
slipped/VBD
to/TO
less/JJR
than/IN
$/$
14.5/CD
billion/CD
from/IN
a/DT
record/NN
$/$
16.7/CD
billion/CD
in/IN
1987/CD
./.
Payments/NNS
are/VBP
expected/VBN
to/TO
range/VB
between/IN
$/$
9/CD
billion/CD
and/CC
$/$
12/CD
billion/CD
this/DT
year/NN
./.
After/IN
years/NNS
of/IN
struggling/VBG
,/,
the/DT
Los/NNP
Angeles/NNP
Herald/NNP
Examiner/NNP
will/MD
publish/VB
its/PRP$
last/JJ
edition/NN
today/NN
,/,
shut/VBN
down/IN
by/IN
its/PRP$
parent/NN
,/,
Hearst/NNP
Corp./NNP
,/,
following/VBG
unsuccessful/JJ
efforts/NNS
to/TO
sell/VB
the/DT
venerable/JJ
newspaper/NN
./.
The/DT
demise/NN
of/IN
the/DT
238,000-circulation/JJ
Herald/NNP
,/,
once/RB
the/DT
nation/NN
's/POS
largest/JJS
afternoon/NN
newspaper/NN
with/IN
circulation/NN
exceeding/VBG
700,000/CD
,/,
turns/VBZ
the/DT
country/NN
's/POS
second-largest/JJ
city/NN
into/IN
a/DT
one-newspaper/JJ
town/NN
,/,
at/IN
least/JJS
in/IN
some/DT
senses/NNS
./.
The/DT
Los/NNP
Angeles/NNP
Times/NNP
,/,
with/IN
a/DT
circulation/NN
of/IN
more/JJR
than/IN
1.1/CD
million/CD
,/,
dominates/VBZ
the/DT
region/NN
./.
But/CC
it/PRP
faces/VBZ
stiff/JJ
competition/NN
in/IN
Orange/NNP
County/NNP
from/IN
the/DT
Orange/NNP
County/NNP
Register/NNP
,/,
which/WDT
sells/VBZ
more/JJR
than/IN
300,000/CD
copies/NNS
a/DT
day/NN
,/,
and/CC
in/IN
the/DT
San/NNP
Fernando/NNP
Valley/NNP
from/IN
the/DT
Los/NNP
Angeles/NNP
Daily/NNP
News/NNP
,/,
which/WDT
sells/VBZ
more/JJR
than/IN
170,000/CD
./.
Nearby/JJ
cities/NNS
such/JJ
as/IN
Pasadena/NNP
and/CC
Long/NNP
Beach/NNP
also/RB
have/VBP
large/JJ
dailies/NNS
./.
In/IN
July/NNP
,/,
closely/RB
held/VBN
Hearst/NNP
,/,
based/VBN
in/IN
New/NNP
York/NNP
,/,
put/VBD
the/DT
paper/NN
on/IN
the/DT
block/NN
./.
Speculation/NN
had/VBD
it/PRP
that/IN
the/DT
company/NN
was/VBD
asking/VBG
$/$
100/CD
million/CD
for/IN
an/DT
operation/NN
said/VBD
to/TO
be/VB
losing/VBG
about/IN
$/$
20/CD
million/CD
a/DT
year/NN
,/,
but/CC
others/NNS
said/VBD
Hearst/NNP
might/MD
have/VB
virtually/RB
given/VBN
the/DT
paper/NN
away/RB
./.
An/DT
attempted/VBN
buy-out/NN
led/VBN
by/IN
John/NNP
J./NNP
McCabe/NNP
,/,
chief/NN
operating/NN
officer/NN
,/,
never/RB
materialized/VBD
,/,
and/CC
a/DT
stream/NN
of/IN
what/WP
one/CD
staff/NN
member/NN
dismissed/VBD
as/IN
``/``
tire-kickers/NNS
and/CC
lookee-loos/NNS
''/''
had/VBD
filed/VBN
through/IN
since/IN
./.
The/DT
prospective/JJ
buyers/NNS
included/VBD
investor/NN
Marvin/NNP
Davis/NNP
and/CC
the/DT
Toronto/NNP
Sun/NNP
./.
The/DT
death/NN
of/IN
the/DT
Herald/NNP
,/,
a/DT
newsstand/NN
paper/NN
in/IN
a/DT
freeway/NN
town/NN
,/,
was/VBD
perhaps/RB
inevitable/JJ
./.
Los/NNP
Angeles/NNP
is/VBZ
a/DT
sprawling/JJ
,/,
balkanized/JJ
newspaper/NN
market/NN
,/,
and/CC
advertisers/NNS
seemed/VBD
to/TO
feel/VB
they/PRP
could/MD
buy/VB
space/NN
in/IN
the/DT
mammoth/JJ
Times/NNP
,/,
then/RB
target/VB
a/DT
particular/JJ
area/NN
with/IN
one/CD
of/IN
the/DT
regional/JJ
dailies/NNS
./.
The/DT
Herald/NNP
was/VBD
left/VBN
in/IN
limbo/NN
./.
Further/RB
,/,
the/DT
Herald/NNP
seemed/VBD
torn/VBN
editorially/RB
between/IN
keeping/VBG
its/PRP$
old-time/JJ
Hearst/NNP
readership/NN
--/:
blue-collar/JJ
and/CC
sports-oriented/JJ
--/:
and/CC
trying/VBG
to/TO
provide/VB
a/DT
sprightly/JJ
,/,
upscale/JJ
alternative/NN
to/TO
the/DT
sometimes/RB
staid/VBN
Times/NNP
./.
Hearst/NNP
had/VBD
flirted/VBN
with/IN
a/DT
conversion/NN
to/TO
tabloid/JJ
format/NN
for/IN
years/NNS
but/CC
never/RB
executed/VBN
the/DT
plan/NN
./.
The/DT
Herald/NNP
joins/VBZ
the/DT
Baltimore/NNP
News-American/NNP
,/,
which/WDT
folded/VBD
,/,
and/CC
the/DT
Boston/NNP
Herald-American/NNP
,/,
which/WDT
was/VBD
sold/VBN
,/,
as/IN
cornerstones/NNS
of/IN
the/DT
old/JJ
Hearst/NNP
newspaper/NN
empire/NN
abandoned/VBN
by/IN
the/DT
company/NN
in/IN
the/DT
1980s/CD
./.
Many/JJ
felt/VBD
Hearst/NNP
kept/VBD
the/DT
paper/NN
alive/JJ
as/IN
long/RB
as/IN
it/PRP
did/VBD
,/,
if/IN
marginally/RB
,/,
because/IN
of/IN
its/PRP$
place/NN
in/IN
family/NN
history/NN
./.
Its/PRP$
fanciful/JJ
offices/NNS
were/VBD
designed/VBN
by/IN
architect/NN
Julia/NNP
Morgan/NNP
,/,
who/WP
built/VBD
the/DT
Hearst/NNP
castle/NN
at/IN
San/NNP
Simeon/NNP
./.
William/NNP
Randolph/NNP
Hearst/NNP
had/VBD
kept/VBN
an/DT
apartment/NN
in/IN
the/DT
Spanish/NNP
Renaissance-style/JJ
building/NN
./.
Analysts/NNS
said/VBD
the/DT
Herald/NNP
's/POS
demise/NN
does/VBZ
n't/RB
necessarily/RB
represent/VB
the/DT
overall/JJ
condition/NN
of/IN
the/DT
newspaper/NN
industry/NN
./.
``/``
The/DT
Herald/NNP
was/VBD
a/DT
survivor/NN
from/IN
a/DT
bygone/JJ
age/NN
,/,
''/''
said/VBD
J./NNP
Kendrick/NNP
Noble/NNP
,/,
a/DT
media/NNS
analyst/NN
with/IN
PaineWebber/NNP
Inc/NNP
./.
``/``
Actually/RB
,/,
the/DT
long/JJ
deterioration/NN
in/IN
daily/JJ
newspapers/NNS
shows/VBZ
signs/NNS
of/IN
coming/VBG
to/TO
an/DT
end/NN
,/,
and/CC
the/DT
industry/NN
looks/VBZ
pretty/RB
healthy/JJ
./.
''/''
Founded/VBN
as/IN
the/DT
Examiner/NNP
in/IN
1903/CD
by/IN
Mr./NNP
Hearst/NNP
,/,
the/DT
Herald/NNP
was/VBD
crippled/VBN
by/IN
a/DT
bitter/JJ
,/,
decade-long/JJ
strike/NN
that/WDT
began/VBD
in/IN
1967/CD
and/CC
cut/VBD
circulation/NN
in/IN
half/DT
./.
Financially/RB
,/,
it/PRP
never/RB
recovered/VBD
;/:
editorially/RB
,/,
it/PRP
had/VBD
its/PRP$
moments/NNS
./.
In/IN
1979/CD
,/,
Hearst/NNP
hired/VBD
editor/NN
James/NNP
Bellows/NNP
,/,
who/WP
brightened/VBD
the/DT
editorial/NN
product/NN
considerably/RB
./.
He/PRP
and/CC
his/PRP$
successor/NN
,/,
Mary/NNP
Anne/NNP
Dolan/NNP
,/,
restored/VBD
respect/NN
for/IN
the/DT
editorial/NN
product/NN
,/,
and/CC
though/IN
in/IN
recent/JJ
years/NNS
the/DT
paper/NN
had/VBD
been/VBN
limping/VBG
along/IN
on/IN
limited/VBN
resources/NNS
,/,
its/PRP$
accomplishments/NNS
were/VBD
notable/JJ
./.
For/IN
example/NN
,/,
the/DT
Herald/NNP
consistently/RB
beat/VBD
its/PRP$
much-larger/JJ
rival/NN
on/IN
disclosures/NNS
about/IN
Los/NNP
Angeles/NNP
Mayor/NNP
Tom/NNP
Bradley/NNP
's/POS
financial/JJ
dealings/NNS
./.
The/DT
Herald/NNP
's/POS
sports/NNS
coverage/NN
and/CC
arts/NNS
criticism/NN
were/VBD
also/RB
highly/RB
regarded/VBN
./.
Robert/NNP
J./NNP
Danzig/NNP
,/,
vice/NN
president/NN
and/CC
general/JJ
manager/NN
of/IN
Hearst/NNP
Newspapers/NNP
,/,
stood/VBD
up/IN
in/IN
the/DT
paper/NN
's/POS
newsroom/NN
yesterday/NN
and/CC
announced/VBD
that/IN
no/DT
buyers/NNS
had/VBD
stepped/VBN
forward/RB
and/CC
that/IN
the/DT
paper/NN
would/MD
fold/VB
,/,
putting/VBG
more/JJR
than/IN
730/CD
full-time/JJ
employees/NNS
out/IN
of/IN
work/NN
./.
Hearst/NNP
said/VBD
it/PRP
would/MD
provide/VB
employees/NNS
with/IN
a/DT
placement/NN
service/NN
and/CC
pay/VB
them/PRP
for/IN
60/CD
days/NNS
./.
Some/DT
long-tenured/JJ
employees/NNS
will/MD
receive/VB
additional/JJ
benefits/NNS
,/,
the/DT
company/NN
said/VBD
./.
Hours/NNS
after/IN
the/DT
announcement/NN
,/,
representatives/NNS
of/IN
the/DT
Orange/NNP
County/NNP
Register/NNP
were/VBD
in/IN
a/DT
bar/NN
across/IN
the/DT
street/NN
recruiting/VBG
./.
The/DT
reaction/NN
in/IN
the/DT
newsroom/NN
was/VBD
emotional/JJ
./.
``/``
I/PRP
've/VBP
never/RB
seen/VBN
so/IN
many/JJ
people/NNS
crying/VBG
in/IN
one/CD
place/NN
at/IN
one/CD
time/NN
,/,
''/''
said/VBD
Bill/NNP
Johnson/NNP
,/,
an/DT
assistant/JJ
city/NN
editor/NN
./.
``/``
So/RB
Long/JJ
,/,
L.A./NNP
''/''
was/VBD
chosen/VBN
as/IN
the/DT
paper/NN
's/POS
final/JJ
headline/NN
./.
``/``
I/PRP
'm/VBP
doing/VBG
the/DT
main/JJ
story/NN
,/,
and/CC
I/PRP
'm/VBP
already/RB
two/CD
beers/NNS
drunk/JJ
,/,
''/''
said/VBD
reporter/NN
Andy/NNP
Furillo/NNP
,/,
whom/WP
the/DT
Times/NNP
hired/VBD
away/RB
several/JJ
years/NNS
ago/IN
but/CC
who/WP
returned/VBD
to/TO
the/DT
Herald/NNP
out/IN
of/IN
preference/NN
./.
His/PRP$
wife/NN
also/RB
works/VBZ
for/IN
the/DT
paper/NN
,/,
as/IN
did/VBD
his/PRP$
father/NN
./.
Outside/JJ
,/,
a/DT
young/JJ
pressman/NN
filling/VBG
a/DT
news/NN
box/NN
with/IN
an/DT
extra/JJ
edition/NN
headlined/VBN
``/``
Herald/NNP
Examiner/NNP
Closes/VBZ
''/''
refused/VBD
to/TO
take/VB
a/DT
reader/NN
's/POS
quarter/NN
./.
``/``
Forget/VB
it/PRP
,/,
''/''
he/PRP
said/VBD
as/IN
he/PRP
handed/VBD
her/PRP
a/DT
paper/NN
./.
``/``
It/PRP
does/VBZ
n't/RB
make/VB
any/DT
difference/NN
now/RB
./.
''/''
Olympia/NNP
Broadcasting/NNP
Corp./NNP
said/VBD
it/PRP
did/VBD
n't/RB
make/VB
a/DT
$/$
1.64/CD
million/CD
semiannual/JJ
interest/NN
payment/NN
due/JJ
yesterday/NN
on/IN
$/$
23.4/CD
million/CD
of/IN
senior/JJ
subordinated/VBN
debentures/NNS
./.
The/DT
radio-station/NN
owner/NN
and/CC
programmer/NN
said/VBD
it/PRP
was/VBD
trying/VBG
to/TO
obtain/VB
additional/JJ
working/JJ
capital/NN
from/IN
its/PRP$
senior/JJ
secured/VBN
lenders/NNS
and/CC
other/JJ
financial/JJ
institutions/NNS
./.
It/PRP
said/VBD
it/PRP
needs/VBZ
to/TO
make/VB
the/DT
payment/NN
by/IN
Dec./NNP
1/CD
to/TO
avoid/VB
a/DT
default/NN
that/WDT
could/MD
lead/VB
to/TO
an/DT
acceleration/NN
of/IN
the/DT
debt/NN
./.
In/IN
September/NNP
,/,
the/DT
company/NN
said/VBD
it/PRP
was/VBD
seeking/VBG
offers/NNS
for/IN
its/PRP$
five/CD
radio/NN
stations/NNS
in/IN
order/NN
to/TO
concentrate/VB
on/IN
its/PRP$
programming/NN
business/NN
./.
If/IN
you/PRP
'd/MD
really/RB
rather/RB
have/VB
a/DT
Buick/NNP
,/,
do/VB
n't/RB
leave/VB
home/NN
without/IN
the/DT
American/NNP
Express/NNP
card/NN
./.
Or/CC
so/IN
the/DT
slogan/NN
might/MD
go/VB
./.
American/NNP
Express/NNP
Co./NNP
and/CC
General/NNP
Motors/NNPS
Corp./NNP
's/POS
beleaguered/VBN
Buick/NNP
division/NN
are/VBP
joining/VBG
forces/NNS
in/IN
a/DT
promotion/NN
aimed/VBN
at/IN
boosting/VBG
Buick/NNP
's/POS
sales/NNS
while/IN
encouraging/VBG
broader/JJR
use/NN
of/IN
the/DT
American/NNP
Express/NNP
card/NN
./.
The/DT
companies/NNS
are/VBP
giving/VBG
four-day/JJ
vacations/NNS
for/IN
two/CD
to/TO
Buick/NNP
buyers/NNS
who/WP
charge/VBP
all/DT
or/CC
part/NN
of/IN
their/PRP$
down/IN
payments/NNS
on/IN
the/DT
American/NNP
Express/NNP
green/JJ
card/NN
./.
They/PRP
have/VBP
begun/VBN
sending/VBG
letters/NNS
explaining/VBG
the/DT
program/NN
,/,
which/WDT
began/VBD
Oct./NNP
18/CD
and/CC
will/MD
end/VB
Dec./NNP
18/CD
,/,
to/TO
about/IN
five/CD
million/CD
card/NN
holders/NNS
./.
Neither/DT
company/NN
would/MD
disclose/VB
the/DT
program/NN
's/POS
cost/NN
./.
Buick/NNP
approached/VBD
American/NNP
Express/NNP
about/IN
a/DT
joint/JJ
promotion/NN
because/IN
its/PRP$
card/NN
holders/NNS
generally/RB
have/VBP
a/DT
``/``
good/JJ
credit/NN
history/NN
''/''
and/CC
are/VBP
``/``
good/JJ
at/IN
making/VBG
payments/NNS
,/,
''/''
says/VBZ
a/DT
spokeswoman/NN
for/IN
the/DT
division/NN
./.
American/NNP
Express/NNP
also/RB
represents/VBZ
the/DT
upscale/NN
image/NN
``/``
we/PRP
're/VBP
trying/VBG
to/TO
project/VB
,/,
''/''
she/PRP
adds/VBZ
./.
Buick/NNP
has/VBZ
been/VBN
seeking/VBG
for/IN
the/DT
past/JJ
few/JJ
years/NNS
to/TO
restore/VB
its/PRP$
reputation/NN
as/IN
``/``
the/DT
doctor/NN
's/POS
car/NN
''/''
--/:
a/DT
product/NN
for/IN
upscale/NN
professionals/NNS
./.
Sales/NNS
were/VBD
roughly/RB
flat/JJ
in/IN
the/DT
1989/CD
model/NN
year/NN
compared/VBN
with/IN
a/DT
year/NN
earlier/JJR
,/,
though/IN
industry/NN
sales/NNS
fell/VBD
./.
But/CC
since/IN
the/DT
1990/CD
model/NN
year/NN
began/VBD
Oct./NNP
1/CD
,/,
Buick/NNP
sales/NNS
have/VBP
plunged/VBN
33/CD
%/NN
./.
For/IN
American/NNP
Express/NNP
,/,
the/DT
promotion/NN
is/VBZ
part/NN
of/IN
an/DT
effort/NN
to/TO
broaden/VB
the/DT
use/NN
of/IN
its/PRP$
card/NN
for/IN
retail/JJ
sales/NNS
,/,
where/WRB
the/DT
company/NN
expects/VBZ
to/TO
get/VB
much/RB
of/IN
the/DT
future/JJ
growth/NN
in/IN
its/PRP$
card/NN
business/NN
./.
Traditionally/RB
,/,
the/DT
card/NN
has/VBZ
been/VBN
used/VBN
mainly/RB
for/IN
travel/NN
and/CC
entertainment/NN
expenses/NNS
./.
Phillip/NNP
Riese/NNP
,/,
an/DT
American/NNP
Express/NNP
executive/JJ
vice/NN
president/NN
,/,
says/VBZ
the/DT
promotion/NN
with/IN
Buick/NNP
is/VBZ
his/PRP$
company/NN
's/POS
first/JJ
with/IN
an/DT
auto/NN
maker/NN
,/,
but/CC
``/``
hopefully/RB
{/(
will/MD
be/VB
}/)
the/DT
first/JJ
of/IN
many/JJ
''/''
in/IN
the/DT
company/NN
's/POS
effort/NN
to/TO
promote/VB
its/PRP$
green/JJ
card/NN
as/IN
``/``
the/DT
total/JJ
car-care/JJ
card/NN
./.
''/''
To/TO
that/DT
end/NN
,/,
American/NNP
Express/NNP
has/VBZ
been/VBN
signing/VBG
up/IN
gasoline/NN
companies/NNS
,/,
car/NN
repair/NN
shops/NNS
,/,
tire/NN
companies/NNS
and/CC
car/NN
dealers/NNS
to/TO
accept/VB
the/DT
card/NN
./.
Many/JJ
auto/NN
dealers/NNS
now/RB
let/VBP
car/NN
buyers/NNS
charge/VB
part/NN
or/CC
all/DT
of/IN
their/PRP$
purchase/NN
on/IN
the/DT
American/NNP
Express/NNP
card/NN
,/,
but/CC
few/JJ
card/NN
holders/NNS
realize/VBP
this/DT
,/,
Mr./NNP
Riese/NNP
says/VBZ
./.
Until/IN
now/RB
,/,
however/RB
,/,
buyers/NNS
who/WP
wanted/VBD
to/TO
finance/VB
part/NN
of/IN
a/DT
car/NN
purchase/NN
through/IN
General/NNP
Motors/NNPS
Acceptance/NNP
Corp./NNP
could/MD
n't/RB
put/VB
their/PRP$
down/NN
payment/NN
on/IN
a/DT
charge/NN
card/NN
because/IN
of/IN
possible/JJ
conflicts/NNS
with/IN
truth-in-lending/NN
and/CC
state/NN
disclosure/NN
laws/NNS
over/IN
finance/NN
rates/NNS
,/,
says/VBZ
a/DT
spokesman/NN
for/IN
the/DT
GM/NNP
finance/NN
arm/NN
./.
But/CC
GMAC/NNP
approved/VBD
the/DT
Buick/NNP
program/NN
,/,
he/PRP
says/VBZ
,/,
because/IN
the/DT
American/NNP
Express/NNP
green/JJ
card/NN
requires/VBZ
payment/NN
in/IN
full/JJ
upon/IN
billing/NN
,/,
and/CC
so/RB
does/VBZ
n't/RB
carry/VB
any/DT
finance/NN
rates/NNS
./.
Mr./NNP
Riese/NNP
says/VBZ
American/NNP
Express/NNP
considers/VBZ
GM/NNP
and/CC
Buick/NNP
``/``
very/RB
sophisticated/JJ
direct-mail/JJ
marketers/NNS
,/,
''/''
so/IN
``/``
by/IN
joining/VBG
forces/NNS
with/IN
them/PRP
we/PRP
have/VBP
managed/VBN
to/TO
maximize/VB
our/PRP$
direct-mail/JJ
capability/NN
./.
''/''
In/IN
addition/NN
,/,
Buick/NNP
is/VBZ
a/DT
relatively/RB
respected/VBN
nameplate/NN
among/IN
American/NNP
Express/NNP
card/NN
holders/NNS
,/,
says/VBZ
an/DT
American/NNP
Express/NNP
spokeswoman/NN
./.
When/WRB
the/DT
company/NN
asked/VBD
members/NNS
in/IN
a/DT
mailing/NN
which/WDT
cars/NNS
they/PRP
would/MD
like/VB
to/TO
get/VB
information/NN
about/IN
for/IN
possible/JJ
future/JJ
purchases/NNS
,/,
Buick/NNP
came/VBD
in/IN
fourth/JJ
among/IN
U.S./NNP
cars/NNS
and/CC
in/IN
the/DT
top/NN
10/CD
of/IN
all/DT
cars/NNS
,/,
the/DT
spokeswoman/NN
says/VBZ
./.
American/NNP
Express/NNP
has/VBZ
more/JJR
than/IN
24/CD
million/CD
card/NN
holders/NNS
in/IN
the/DT
U.S./NNP
,/,
and/CC
over/IN
half/DT
have/VBP
the/DT
green/JJ
card/NN
./.
GMAC/NNP
screened/VBD
the/DT
card-member/NN
list/NN
for/IN
holders/NNS
more/JJR
than/IN
30/CD
years/NNS
old/JJ
with/IN
household/NN
incomes/NNS
over/IN
$/$
45,000/CD
who/WP
had/VBD
n't/RB
``/``
missed/VBN
any/DT
payments/NNS
,/,
''/''
the/DT
Buick/NNP
spokeswoman/NN
says/VBZ
./.
Some/DT
3.8/CD
million/CD
of/IN
the/DT
five/CD
million/CD
who/WP
will/MD
get/VB
letters/NNS
were/VBD
preapproved/VBN
for/IN
credit/NN
with/IN
GMAC/NNP
./.
These/DT
3.8/CD
million/CD
people/NNS
also/RB
are/VBP
eligible/JJ
to/TO
get/VB
one/CD
percentage/NN
point/NN
off/IN
GMAC/NNP
's/POS
advertised/VBN
finance/NN
rates/NNS
,/,
which/WDT
start/VBP
at/IN
6.9/CD
%/NN
for/IN
two-year/JJ
loan/NN
contracts/NNS
./.
A/DT
spokesman/NN
for/IN
Visa/NNP
International/NNP
's/POS
U.S./NNP
subsidiary/NN
says/VBZ
his/PRP$
company/NN
is/VBZ
using/VBG
promotions/NNS
to/TO
increase/VB
use/NN
of/IN
its/PRP$
cards/NNS
,/,
but/CC
does/VBZ
n't/RB
have/VB
plans/NNS
for/IN
a/DT
tie-in/NN
similar/JJ
to/TO
the/DT
American/NNP
Express-Buick/NNP
link/NN
./.
Three/CD
divisions/NNS
at/IN
American/NNP
Express/NNP
are/VBP
working/VBG
with/IN
Buick/NNP
on/IN
the/DT
promotion/NN
:/:
the/DT
establishment/NN
services/NNS
division/NN
,/,
which/WDT
is/VBZ
responsible/JJ
for/IN
all/DT
merchants/NNS
and/CC
companies/NNS
that/WDT
accept/VBP
the/DT
card/NN
;/:
the/DT
travel/NN
division/NN
;/:
and/CC
the/DT
merchandise/NN
sales/NNS
division/NN
./.
The/DT
vacation/NN
packages/NNS
include/VBP
hotel/NN
accommodations/NNS
and/CC
,/,
in/IN
some/DT
cases/NNS
,/,
tours/NNS
or/CC
tickets/NNS
to/TO
local/JJ
attractions/NNS
,/,
but/CC
not/RB
meals/NNS
./.
Destinations/NNS
are/VBP
Chicago/NNP
;/:
Honolulu/NNP
;/:
Las/NNP
Vegas/NNP
,/,
Nev./NNP
;/:
Los/NNP
Angeles/NNP
;/:
Miami/NNP
Beach/NNP
,/,
Fla./NNP
;/:
New/NNP
Orleans/NNP
;/:
New/NNP
York/NNP
;/:
Orlando/NNP
,/,
Fla./NNP
;/:
San/NNP
Francisco/NNP
;/:
and/CC
Washington/NNP
,/,
D.C./NNP
A/DT
buyer/NN
who/WP
chooses/VBZ
to/TO
fly/VB
to/TO
his/PRP$
destination/NN
must/MD
pay/VB
for/IN
his/PRP$
own/JJ
ticket/NN
but/CC
gets/VBZ
a/DT
companion/NN
's/POS
ticket/NN
free/JJ
if/IN
they/PRP
fly/VBP
on/IN
United/NNP
Airlines/NNPS
./.
In/IN
lieu/NN
of/IN
the/DT
vacation/NN
,/,
buyers/NNS
can/MD
choose/VB
among/IN
several/JJ
prizes/NNS
,/,
including/VBG
a/DT
grandfather/NN
clock/NN
or/CC
a/DT
stereo/NN
videocassette/NN
recorder/NN
./.
Card/NN
holders/NNS
who/WP
receive/VBP
the/DT
letter/NN
also/RB
are/VBP
eligible/JJ
for/IN
a/DT
sweepstakes/NN
with/IN
Buick/NNP
cars/NNS
or/CC
a/DT
Hawaii/NNP
vacation/NN
as/IN
prizes/NNS
./.
If/IN
they/PRP
test-drive/VBP
a/DT
Buick/NNP
,/,
they/PRP
get/VBP
an/DT
American/NNP
Express/NNP
calculator/NN
./.
This/DT
is/VBZ
n't/RB
Buick/NNP
's/POS
first/JJ
travel-related/JJ
promotion/NN
./.
A/DT
few/JJ
years/NNS
ago/IN
,/,
the/DT
company/NN
offered/VBD
two/CD
round-trip/JJ
tickets/NNS
on/IN
Trans/NNP
World/NNP
Airlines/NNPS
to/TO
buyers/NNS
of/IN
its/PRP$
Riviera/NNP
luxury/NN
car/NN
./.
The/DT
promotion/NN
helped/VBD
Riviera/NNP
sales/NNS
exceed/VB
the/DT
division/NN
's/POS
forecast/NN
by/IN
more/JJR
than/IN
10/CD
%/NN
,/,
Buick/NNP
said/VBD
at/IN
the/DT
time/NN
./.
The/DT
United/NNP
Kingdom/NNP
High/NNP
Court/NNP
declared/VBD
illegal/JJ
a/DT
variety/NN
of/IN
interest-rate/NN
swap/NN
transactions/NNS
and/CC
options/NNS
deals/NNS
between/IN
a/DT
London/NNP
borough/NN
council/NN
and/CC
commercial/JJ
banks/NNS
./.
The/DT
ruling/NN
could/MD
lead/VB
to/TO
the/DT
cancellation/NN
of/IN
huge/JJ
bank/NN
debts/NNS
the/DT
London/NNP
Borough/NNP
of/IN
Hammersmith/NNP
and/CC
Fulham/NNP
ran/VBD
up/IN
after/IN
losing/VBG
heavily/RB
on/IN
swap/NN
transactions/NNS
./.
As/RB
many/JJ
as/IN
70/CD
U.K./NNP
and/CC
international/JJ
banks/NNS
stand/VBP
to/TO
lose/VB
several/JJ
hundred/CD
million/CD
pounds/NNS
should/MD
the/DT
decision/NN
be/VB
upheld/VBN
and/CC
set/VB
a/DT
precedent/NN
for/IN
other/JJ
municipalities/NNS
./.
An/DT
appeal/NN
is/VBZ
expected/VBN
./.
In/IN
response/NN
to/TO
the/DT
ruling/NN
,/,
gilt/JJ
futures/NNS
swiftly/RB
plunged/VBD
more/JJR
than/IN
a/DT
point/NN
yesterday/NN
before/IN
recovering/VBG
much/JJ
of/IN
the/DT
loss/NN
by/IN
the/DT
end/NN
of/IN
the/DT
session/NN
./.
Gilts/NNS
,/,
or/CC
British/JJ
government/NN
bonds/NNS
,/,
which/WDT
also/RB
fell/VBD
sharply/RB
initially/RB
,/,
retraced/VBD
some/DT
of/IN
the/DT
losses/NNS
to/TO
end/VB
about/IN
3\/8/CD
point/NN
lower/JJR
./.
The/DT
council/NN
,/,
which/WDT
is/VBZ
alleged/VBN
to/TO
have/VB
engaged/VBN
in/IN
over/IN
600/CD
deals/NNS
valued/VBN
at/IN
over/IN
#/#
6/CD
billion/CD
$/$
9.5/CD
billion/CD
millions/NNS
of/IN
pounds/NNS
from/IN
soured/JJ
swap/NN
deals/NNS
./.
At/IN
one/CD
point/NN
,/,
Hammersmith/NNP
is/VBZ
reported/VBN
to/TO
have/VB
accounted/VBN
for/IN
as/RB
much/JJ
as/IN
10/CD
%/NN
of/IN
the/DT
sterling/NN
market/NN
in/IN
interest-rate/NN
swap/NN
dealings/NNS
./.
When/WRB
two/CD
parties/NNS
engage/VBP
in/IN
an/DT
interest-rate/NN
swap/NN
,/,
they/PRP
are/VBP
betting/VBG
against/IN
each/DT
other/JJ
on/IN
future/JJ
rates/NNS
./.
Thus/RB
,/,
an/DT
institution/NN
obligated/VBD
to/TO
make/VB
fixed-rate/JJ
interest/NN
payments/NNS
on/IN
debt/NN
swaps/NNS
the/DT
payments/NNS
with/IN
another/DT
making/VBG
floating-rate/JJ
payments/NNS
./.
In/IN
most/JJS
of/IN
the/DT
British/JJ
transactions/NNS
,/,
the/DT
municipalities/NNS
agreed/VBD
to/TO
make/VB
floating-rate/JJ
payments/NNS
to/TO
banks/NNS
,/,
which/WDT
would/MD
make/VB
fixed-rate/JJ
payments/NNS
./.
As/IN
interest/NN
rates/NNS
rose/VBD
,/,
municipalities/NNS
owed/VBD
the/DT
banks/NNS
more/JJR
than/IN
the/DT
banks/NNS
were/VBD
paying/VBG
them/PRP
./.
The/DT
court/NN
hearing/NN
began/VBD
in/IN
early/JJ
October/NNP
at/IN
the/DT
request/NN
of/IN
Anthony/NNP
Hazell/NNP
,/,
district/NN
auditor/NN
for/IN
Hammersmith/NNP
,/,
who/WP
argued/VBD
that/IN
local/JJ
councils/NNS
are/VBP
n't/RB
vested/VBN
with/IN
constitutional/JJ
authority/NN
to/TO
engage/VB
in/IN
such/JJ
capital-markets/JJ
activities/NNS
./.
The/DT
council/NN
backed/VBD
the/DT
audit/NN
commission/NN
's/POS
stand/NN
that/IN
the/DT
swap/NN
transactions/NNS
are/VBP
illegal/JJ
./.
Although/IN
the/DT
Hammersmith/NNP
and/CC
Fulham/NNP
council/NN
was/VBD
by/IN
far/RB
the/DT
most/RBS
active/JJ
local/JJ
authority/NN
engaging/VBG
in/IN
such/JJ
capital-markets/JJ
transactions/NNS
,/,
the/DT
court/NN
decision/NN
could/MD
set/VB
a/DT
precedent/NN
for/IN
similar/JJ
transactions/NNS
by/IN
77/CD
other/JJ
local/JJ
councils/NNS
./.
``/``
While/IN
this/DT
court/NN
ruling/NN
was/VBD
only/RB
on/IN
Hammersmith/NNP
,/,
it/PRP
will/MD
obviously/RB
be/VB
very/RB
persuasive/JJ
in/IN
other/JJ
cases/NNS
of/IN
a/DT
similar/JJ
nature/NN
,/,
''/''
a/DT
solicitor/NN
representing/VBG
one/CD
of/IN
the/DT
banks/NNS
said/VBD
./.
Already/RB
,/,
10/CD
local/JJ
councils/NNS
have/VBP
refused/VBN
to/TO
honor/VB
fees/NNS
and/CC
payments/NNS
to/TO
banks/NNS
incurred/VBN
during/IN
various/JJ
swaps/NNS
dealings/NNS
./.
Other/JJ
financial/JJ
institutions/NNS
involved/VBN
include/VBP
Barclays/NNP
Bank/NNP
PLC/NNP
,/,
Midland/NNP
Bank/NNP
PLC/NNP
,/,
Security/NNP
Pacific/NNP
Corp./NNP
,/,
Chemical/NNP
Banking/NNP
Corp./NNP
's/POS
Chemical/NNP
Bank/NNP
,/,
Citicorp/NNP
's/POS
Citibank/NNP
and/CC
Mitsubishi/NNP
Finance/NNP
International/NNP
./.
If/IN
the/DT
banks/NNS
exhaust/VBP
all/DT
avenues/NNS
of/IN
appeal/NN
,/,
it/PRP
is/VBZ
possible/JJ
that/IN
they/PRP
would/MD
seek/VB
to/TO
have/VB
the/DT
illegality/NN
ruling/NN
work/VB
both/DT
ways/NNS
,/,
some/DT
market/NN
sources/NNS
said/VBD
./.
Banks/NNS
could/MD
seek/VB
to/TO
recover/VB
payments/NNS
to/TO
local/JJ
authorities/NNS
in/IN
instances/NNS
where/WRB
the/DT
banks/NNS
made/VBD
net/JJ
payments/NNS
to/TO
councils/NNS
./.
Officials/NNS
from/IN
the/DT
various/JJ
banks/NNS
involved/VBN
are/VBP
expected/VBN
to/TO
meet/VB
during/IN
the/DT
next/JJ
few/JJ
days/NNS
to/TO
consider/VB
other/JJ
arrangements/NNS
with/IN
local/JJ
authorities/NNS
that/WDT
could/MD
be/VB
questionable/JJ
./.
The/DT
banks/NNS
have/VBP
28/CD
days/NNS
to/TO
file/VB
an/DT
appeal/NN
against/IN
the/DT
ruling/NN
and/CC
are/VBP
expected/VBN
to/TO
do/VB
so/RB
shortly/RB
./.
In/IN
the/DT
aftermath/NN
of/IN
the/DT
stock/NN
market/NN
's/POS
gut-wrenching/JJ
190-point/JJ
drop/NN
on/IN
Oct./NNP
13/CD
,/,
Kidder/NNP
,/,
Peabody/NNP
&/CC
Co./NNP
's/POS
1,400/CD
stockbrokers/NNS
across/IN
the/DT
country/NN
began/VBD
a/DT
telephone/NN
and/CC
letter-writing/JJ
campaign/NN
aimed/VBN
at/IN
quashing/VBG
the/DT
country/NN
's/POS
second-largest/JJ
program/NN
trader/NN
./.
The/DT
target/NN
of/IN
their/PRP$
wrath/NN
?/.
Their/PRP$
own/JJ
employer/NN
,/,
Kidder/NNP
Peabody/NNP
./.
Since/IN
October/NNP
's/POS
minicrash/NN
,/,
Wall/NNP
Street/NNP
has/VBZ
been/VBN
shaken/VBN
by/IN
an/DT
explosion/NN
of/IN
resentment/NN
against/IN
program/NN
trading/NN
,/,
the/DT
computer-driven/JJ
,/,
lightning-fast/JJ
trades/NNS
of/IN
huge/JJ
baskets/NNS
of/IN
stocks/NNS
and/CC
futures/NNS
that/WDT
can/MD
send/VB
stock/NN
prices/NNS
reeling/VBG
in/IN
minutes/NNS
./.
But/CC
the/DT
heated/VBN
fight/NN
over/IN
program/NN
trading/NN
is/VBZ
about/IN
much/RB
more/JJR
than/IN
a/DT
volatile/JJ
stock/NN
market/NN
./.
The/DT
real/JJ
battle/NN
is/VBZ
over/IN
who/WP
will/MD
control/VB
that/DT
market/NN
and/CC
reap/VB
its/PRP$
huge/JJ
rewards/NNS
./.
Program/NN
trading/NN
itself/PRP
,/,
according/VBG
to/TO
many/JJ
academics/NNS
who/WP
have/VBP
studied/VBN
it/PRP
,/,
is/VBZ
merely/RB
caught/VBN
in/IN
the/DT
middle/NN
of/IN
this/DT
battle/NN
,/,
unfairly/RB
labeled/VBN
as/IN
the/DT
evil/NN
driving/VBG
force/NN
of/IN
the/DT
marketplace/NN
./.
The/DT
evidence/NN
indicates/VBZ
that/IN
program/NN
trading/NN
did/VBD
n't/RB
,/,
in/IN
fact/NN
,/,
cause/VB
the/DT
market/NN
's/POS
sharp/JJ
fall/NN
on/IN
Oct./NNP
13/CD
,/,
though/IN
it/PRP
may/MD
have/VB
exacerbated/VBN
it/PRP
./.
On/IN
one/CD
side/NN
of/IN
this/DT
power/NN
struggle/NN
stand/VBP
the/DT
forces/NNS
in/IN
ascendency/NN
on/IN
Wall/NNP
Street/NNP
--/:
the/DT
New/NNP
Guard/NNP
--/:
consisting/VBG
of/IN
high-tech/JJ
computer/NN
wizards/NNS
at/IN
the/DT
major/JJ
brokerage/NN
firms/NNS
,/,
their/PRP$
pension/NN
fund/NN
clients/NNS
with/IN
immense/NN
pools/NNS
of/IN
money/NN
,/,
and/CC
the/DT
traders/NNS
at/IN
the/DT
fast-growing/JJ
Chicago/NNP
futures/NNS
exchanges/NNS
./.
These/DT
are/VBP
the/DT
main/JJ
proponents/NNS
of/IN
program/NN
trading/NN
./.
Defending/VBG
their/PRP$
ramparts/NNS
are/VBP
Wall/NNP
Street/NNP
's/POS
Old/NNP
Guard/NNP
--/:
the/DT
traditional/JJ
,/,
stock-picking/JJ
money/NN
managers/NNS
,/,
tens/NNS
of/IN
thousands/NNS
of/IN
stock/NN
brokers/NNS
,/,
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
's/POS
listed/VBN
companies/NNS
and/CC
the/DT
clannish/JJ
floor/NN
traders/NNS
,/,
known/VBN
as/IN
specialists/NNS
,/,
who/WP
make/VBP
markets/NNS
in/IN
their/PRP$
stocks/NNS
./.
So/IN
far/RB
,/,
Wall/NNP
Street/NNP
's/POS
Old/NNP
Guard/NNP
seems/VBZ
to/TO
be/VB
winning/VBG
the/DT
program-trading/JJ
battle/NN
,/,
successfully/RB
mobilizing/VBG
public/JJ
and/CC
congressional/JJ
opinion/NN
to/TO
bludgeon/VB
their/PRP$
tormentors/NNS
./.
The/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
,/,
a/DT
major/JJ
futures/NNS
marketplace/NN
,/,
yesterday/NN
announced/VBD
the/DT
addition/NN
of/IN
another/DT
layer/NN
of/IN
trading/NN
halts/NNS
designed/VBN
to/TO
slow/VB
program/NN
traders/NNS
during/IN
a/DT
rapidly/RB
falling/VBG
stock/NN
market/NN
,/,
and/CC
the/DT
Big/NNP
Board/NNP
is/VBZ
expected/VBN
today/NN
to/TO
approve/VB
some/DT
additional/JJ
restrictions/NNS
on/IN
program/NN
trading/NN
./.
Stung/VBN
by/IN
charges/NNS
that/IN
their/PRP$
greed/NN
is/VBZ
turning/VBG
the/DT
stock/NN
market/NN
into/IN
a/DT
gigantic/JJ
crapshoot/NN
,/,
almost/RB
all/PDT
the/DT
big/JJ
investment/NN
banking/NN
houses/NNS
have/VBP
abandoned/VBN
index/NN
arbitrage/NN
,/,
a/DT
common/JJ
form/NN
of/IN
program/NN
trading/NN
,/,
for/IN
their/PRP$
own/JJ
accounts/NNS
in/IN
the/DT
past/JJ
few/JJ
days/NNS
./.
A/DT
few/JJ
,/,
such/JJ
as/IN
giant/JJ
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
,/,
now/RB
refuse/VBP
even/RB
to/TO
do/VB
index/NN
arbitrage/NN
trades/NNS
for/IN
clients/NNS
./.
The/DT
Old/NNP
Guard/NNP
's/POS
assault/NN
on/IN
program/NN
trading/NN
and/CC
its/PRP$
practitioners/NNS
has/VBZ
been/VBN
fierce/JJ
and/CC
broad-based/JJ
,/,
in/IN
part/NN
because/IN
some/DT
Old/NNP
Guard/NNP
members/NNS
feel/VBP
their/PRP$
very/JJ
livelihood/NN
is/VBZ
at/IN
stake/NN
./.
Some/RB
,/,
such/JJ
as/IN
traditional/JJ
money/NN
manager/NN
Neuberger/NNP
&/CC
Berman/NNP
,/,
have/VBP
taken/VBN
out/IN
national/JJ
newspaper/NN
advertisements/NNS
demanding/VBG
that/IN
market/NN
regulators/NNS
``/``
stop/VB
the/DT
numbers/NNS
racket/NN
on/IN
Wall/NNP
Street/NNP
./.
''/''
Big/NNP
Board/NNP
stock/NN
specialists/NNS
,/,
in/IN
a/DT
bold/JJ
palace/NN
revolt/NN
,/,
began/VBD
shortly/RB
after/IN
Oct./NNP
13/CD
to/TO
telephone/VB
the/DT
corporate/JJ
executives/NNS
of/IN
the/DT
companies/NNS
whose/WP$
stock/NN
is/VBZ
listed/VBN
on/IN
the/DT
Big/NNP
Board/NNP
to/TO
have/VB
them/PRP
pressure/VB
the/DT
exchange/NN
to/TO
ban/VB
program/NN
trading/NN
./.
Charles/NNP
Wohlstetter/NNP
,/,
the/DT
chairman/NN
of/IN
Contel/NNP
Corp./NNP
who/WP
is/VBZ
rallying/VBG
other/JJ
CEOs/NNS
to/TO
the/DT
anti-program/JJ

trading/NN
cause/NN
,/,
says/VBZ
he/PRP
has/VBZ
received/VBN
``/``
countless/JJ
''/''
letters/NNS
offering/VBG
support/NN
./.
``/``
They/PRP
said/VBD
universally/RB
,/,
without/IN
a/DT
single/JJ
exception/NN
:/:
Do/VB
n't/RB
even/RB
compromise/VB
./.
Kill/VB
it/PRP
,/,
''/''
he/PRP
says/VBZ
./.
Wall/NNP
Street/NNP
's/POS
New/NNP
Guard/NNP
is/VBZ
n't/RB
likely/JJ
to/TO
take/VB
all/PDT
this/DT
lying/VBG
down/IN
for/IN
long/RB
,/,
however/RB
./.
Its/PRP$
new/JJ
products/NNS
and/CC
trading/NN
techniques/NNS
have/VBP
been/VBN
highly/RB
profitable/JJ
./.
Program/NN
trading/NN
money/NN
managers/NNS
have/VBP
gained/VBN
control/NN
over/IN
a/DT
big/JJ
chunk/NN
of/IN
the/DT
invested/VBN
funds/NNS
in/IN
this/DT
country/NN
,/,
and/CC
the/DT
pressures/NNS
on/IN
such/JJ
money/NN
managers/NNS
to/TO
produce/VB
consistent/JJ
profits/NNS
has/VBZ
wedded/VBN
them/PRP
to/TO
the/DT
ability/NN
to/TO
move/VB
rapidly/RB
in/IN
and/CC
out/IN
the/DT
market/NN
that/IN
program/NN
trading/NN
gives/VBZ
them/PRP
./.
What/WP
's/VBZ
more/JJR
,/,
the/DT
last/JJ
time/NN
major/JJ
Wall/NNP
Street/NNP
firms/NNS
said/VBD
they/PRP
were/VBD
getting/VBG
out/IN
of/IN
program/NN
trading/NN
--/:
in/IN
the/DT
aftermath/NN
of/IN
the/DT
1987/CD
crash/NN
--/:
they/PRP
waited/VBD
a/DT
few/JJ
months/NNS
and/CC
then/RB
sneaked/VBD
back/RB
into/IN
it/PRP
./.
Even/RB
some/DT
members/NNS
of/IN
the/DT
Old/NNP
Guard/NNP
,/,
despite/IN
their/PRP$
current/JJ
advantage/NN
,/,
seem/VBP
to/TO
be/VB
conceding/VBG
that/IN
the/DT
future/NN
belongs/VBZ
with/IN
the/DT
New/NNP
Guard/NNP
./.
Last/JJ
week/NN
,/,
Robert/NNP
M./NNP
Bradley/NNP
,/,
one/CD
of/IN
the/DT
Big/NNP
Board/NNP
's/POS
most/RBS
respected/VBN
floor/NN
traders/NNS
and/CC
head/NN
of/IN
a/DT
major/JJ
traders/NNS
'/POS
organization/NN
,/,
surrendered/VBD
./.
He/PRP
sold/VBD
his/PRP$
exchange/NN
seat/NN
and/CC
wrote/VBD
a/DT
bitter/JJ
letter/NN
to/TO
Big/NNP
Board/NNP
Chairman/NNP
John/NNP
J./NNP
Phelan/NNP
Jr./NNP
in/IN
which/WDT
he/PRP
said/VBD
the/DT
Big/NNP
Board/NNP
is/VBZ
too/RB
focused/VBN
on/IN
machines/NNS
,/,
rather/RB
than/IN
people/NNS
./.
He/PRP
said/VBD
the/DT
exchange/NN
is/VBZ
``/``
headed/VBN
for/IN
a/DT
real/JJ
crisis/NN
''/''
if/IN
program/NN
trading/NN
is/VBZ
n't/RB
curbed/VBN
./.
``/``
I/PRP
do/VBP
not/RB
want/VB
my/PRP$
money/NN
invested/VBN
in/IN
what/WP
I/PRP
consider/VBP
as/IN
nothing/NN
more/JJR
than/IN
a/DT
casino/NN
,/,
''/''
Mr./NNP
Bradley/NNP
wrote/VBD
./.
The/DT
battle/NN
has/VBZ
turned/VBN
into/IN
a/DT
civil/JJ
war/NN
at/IN
some/DT
firms/NNS
and/CC
organizations/NNS
,/,
causing/VBG
internal/JJ
contradictions/NNS
and/CC
pitting/VBG
employee/NN
against/IN
employee/NN
./.
At/IN
Kidder/NNP
,/,
a/DT
unit/NN
of/IN
General/NNP
Electric/NNP
Co./NNP
,/,
and/CC
other/JJ
big/JJ
brokerage/NN
firms/NNS
,/,
stockbrokers/NNS
battle/VBP
their/PRP$
own/JJ
firm/NN
's/POS
program/NN
traders/NNS
a/DT
few/JJ
floors/NNS
away/RB
./.
Corporations/NNS
like/IN
Contel/NNP
denounce/VBP
program/NN
trading/NN
,/,
yet/CC
Contel/NNP
has/VBZ
in/IN
the/DT
past/NN
hired/VBD
pension/NN
fund/NN
managers/NNS
like/IN
Bankers/NNP
Trust/NNP
Co./NNP
that/WDT
are/VBP
also/RB
big/JJ
program/NN
traders/NNS
./.
The/DT
Big/NNP
Board/NNP
--/:
the/DT
nation/NN
's/POS
premier/JJ
stock/NN
exchange/NN
--/:
is/VBZ
sharply/RB
divided/VBN
between/IN
its/PRP$
floor/NN
traders/NNS
and/CC
its/PRP$
top/JJ
executives/NNS
./.
Its/PRP$
entrenched/VBN
49/CD
stock/NN
specialists/NNS
firms/NNS
are/VBP
fighting/VBG
tooth/NN
and/CC
nail/NN
against/IN
programs/NNS
./.
But/CC
the/DT
Big/NNP
Board/NNP
's/POS
leadership/NN
--/:
over/IN
the/DT
specialists/NNS
'/POS
protests/NNS
--/:
two/CD
weeks/NNS
ago/IN
began/VBD
trading/NN
a/DT
new/JJ
stock/NN
``/``
basket/NN
''/''
product/NN
designed/VBN
to/TO
facilitate/VB
program/NN
trading/NN
./.
``/``
A/DT
lot/NN
of/IN
people/NNS
would/MD
like/VB
to/TO
go/VB
back/RB
to/TO
1970/CD
,/,
''/''
before/IN
program/NN
trading/NN
,/,
Mr./NNP
Phelan/NNP
said/VBD
this/DT
week/NN
./.
``/``
I/PRP
would/MD
like/VB
to/TO
go/VB
back/RB
to/TO
1970/CD
./.
But/CC
we/PRP
are/VBP
not/RB
going/VBG
back/RB
to/TO
1970/CD
./.
''/''
Again/RB
and/CC
again/RB
,/,
program-trading/NN
's/POS
critics/NNS
raise/VBP
the/DT
``/``
casino/NN
''/''
theme/NN
./.
They/PRP
say/VBP
greedy/JJ
market/NN
manipulators/NNS
have/VBP
made/VBN
a/DT
shambles/NN
of/IN
the/DT
nation/NN
's/POS
free-enterprise/NN
system/NN
,/,
turning/VBG
the/DT
stock/NN
market/NN
into/IN
a/DT
big/JJ
gambling/NN
den/NN
,/,
with/IN
the/DT
odds/NNS
heavily/RB
stacked/VBN
against/IN
the/DT
small/JJ
investor/NN
./.
``/``
The/DT
public/NN
did/VBD
n't/RB
come/VBN
to/TO
the/DT
market/NN
to/TO
play/VB
a/DT
game/NN
;/:
they/PRP
can/MD
go/VB
to/TO
Off-Track/NNP
Betting/NNP
for/IN
that/DT
,/,
''/''
says/VBZ
A./NNP
Brean/NNP
Murray/NNP
,/,
chairman/NN
of/IN
Brean/NNP
Murray/NNP
,/,
Foster/NNP
Securities/NNPS
,/,
a/DT
traditional/JJ
money/NN
management/NN
firm/NN
./.
The/DT
program/NN
traders/NNS
,/,
on/IN
the/DT
other/JJ
hand/NN
,/,
portray/VBP
old-fashioned/JJ
stock/NN
pickers/NNS
as/IN
the/DT
Neanderthals/NNS
of/IN
the/DT
industry/NN
./.
Critics/NNS
like/IN
Mr./NNP
Murray/NNP
``/``
are/VBP
looking/VBG
for/IN
witches/NNS
,/,
and/CC
people/NNS
who/WP
use/VBP
computers/NNS
to/TO
trade/VB
are/VBP
a/DT
convenient/JJ
boogieman/NN
,/,
''/''
says/VBZ
J./NNP
Thomas/NNP
Allen/NNP
,/,
president/NN
of/IN
Advanced/NNP
Investment/NNP
Management/NNP
Inc./NNP
,/,
a/DT
Pittsburgh/NNP
firm/NN
that/WDT
runs/VBZ
a/DT
$/$
200/CD
million/CD
fund/NN
that/WDT
uses/VBZ
index/NN
arbitrage/NN
./.
``/``
Just/RB
a/DT
blind/JJ
fear/NN
of/IN
the/DT
unknown/NN
is/VBZ
causing/VBG
them/PRP
to/TO
beg/VB
the/DT
regulators/NNS
for/IN
protection/NN
./.
''/''
For/IN
all/PDT
the/DT
furor/NN
,/,
there/EX
is/VBZ
nothing/NN
particularly/RB
complex/JJ
about/IN
the/DT
concept/NN
of/IN
stock-index/JJ
arbitrage/NN
,/,
the/DT
most/RBS
controversial/JJ
type/NN
of/IN
computer-assisted/JJ
program/NN
trading/NN
./.
Like/IN
other/JJ
forms/NNS
of/IN
arbitrage/NN
,/,
it/PRP
merely/RB
seeks/VBZ
to/TO
take/VB
advantage/NN
of/IN
momentary/JJ
discrepancies/NNS
in/IN
the/DT
price/NN
of/IN
a/DT
single/JJ
product/NN
--/:
in/IN
this/DT
case/NN
,/,
a/DT
basket/NN
of/IN
stocks/NNS
--/:
in/IN
different/JJ
markets/NNS
--/:
in/IN
this/DT
case/NN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
and/CC
the/DT
Chicago/NNP
futures/NNS
markets/NNS
./.
That/DT
divergence/NN
is/VBZ
what/WP
stock/NN
index/NN
traders/NNS
seek/VBP
./.
When/WRB
it/PRP
occurs/VBZ
,/,
the/DT
traders/NNS
place/VBP
orders/NNS
via/IN
computers/NNS
to/TO
buy/VB
the/DT
basket/NN
of/IN
stocks/NNS
the/DT
500/CD
stocks/NNS
that/WDT
constitute/VBP
the/DT
Standard/NNP
&/CC
Poor/NNP
's/POS
500/CD
stock/NN
index/NN
whichever/WDT
market/NN
is/VBZ
cheaper/JJR
and/CC
sell/VBP
them/PRP
in/IN
the/DT
more/RBR
expensive/JJ
market/NN
;/:
they/PRP
lock/VBP
in/IN
the/DT
difference/NN
in/IN
price/NN
as/IN
profit/NN
./.
Such/JJ
program/NN
trades/NNS
,/,
which/WDT
can/MD
involve/VB
the/DT
purchase/NN
or/CC
sale/NN
of/IN
millions/NNS
of/IN
dollars/NNS
of/IN
stock/NN
,/,
occur/VBP
in/IN
a/DT
matter/NN
of/IN
seconds/NNS
./.
A/DT
program/NN
trade/NN
of/IN
$/$
5/CD
million/CD
of/IN
stock/NN
typically/RB
earns/VBZ
a/DT
razor-thin/JJ
profit/NN
of/IN
$/$
25,000/CD
./.
To/TO
keep/VB
program-trading/JJ
units/NNS
profitable/JJ
in/IN
the/DT
eyes/NNS
of/IN
senior/JJ
brokerage/NN
executives/NNS
,/,
traders/NNS
must/MD
seize/VB
every/DT
opportunity/NN
their/PRP$
computers/NNS
find/VBP
./.
The/DT
speed/NN
with/IN
which/WDT
such/JJ
program/NN
trades/NNS
take/VBP
place/NN
and/CC
the/DT
volatile/JJ
price/NN
movements/NNS
they/PRP
can/MD
cause/VB
are/VBP
what/WP
program/NN
trading/NN
critics/NNS
profess/VBP
to/TO
despise/VB
./.
``/``
If/IN
you/PRP
continue/VBP
to/TO
do/VB
this/DT
,/,
the/DT
investor/NN
becomes/VBZ
frightened/VBN
--/:
any/DT
investor/NN
:/:
the/DT
odd/JJ
lotter/NN
,/,
mutual/JJ
funds/NNS
and/CC
pension/NN
funds/NNS
,/,
''/''
says/VBZ
Larry/NNP
Zicklin/NNP
,/,
managing/VBG
partner/NN
at/IN
Neuberger/NNP
&/CC
Berman/NNP
./.
But/CC
many/JJ
experts/NNS
and/CC
traders/NNS
say/VBP
that/IN
program/NN
trading/NN
is/VBZ
n't/RB
the/DT
main/JJ
reason/NN
for/IN
stock-market/NN
gyrations/NNS
./.
``/``
I/PRP
have/VBP
not/RB
seen/VBN
one/CD
iota/NN
of/IN
evidence/NN
''/''
to/TO
support/VB
restrictions/NNS
on/IN
program/NN
trading/NN
,/,
says/VBZ
a/DT
Vanderbilt/NNP
University/NNP
finance/NN
professor/NN
,/,
Hans/NNP
Stoll/NNP
,/,
an/DT
authority/NN
on/IN
the/DT
subject/NN
./.
Says/VBZ
the/DT
Big/NNP
Board/NNP
's/POS
Mr./NNP
Phelan/NNP
,/,
``/``
Volatility/NN
is/VBZ
greater/JJR
than/IN
program/NN
trading/NN
./.
''/''
The/DT
Oct./NNP
13/CD
plunge/NN
was/VBD
triggered/VBN
not/RB
by/IN
program/NN
traders/NNS
,/,
but/CC
by/IN
news/NN
of/IN
the/DT
unraveling/NN
of/IN
the/DT
$/$
6.79/CD
billion/CD
buy-out/NN
of/IN
UAL/NNP
Corp/NNP
./.
Unable/JJ
to/TO
unload/VB
UAL/NNP
and/CC
other/JJ
airline/NN
shares/NNS
,/,
takeover-stock/JJ
speculators/NNS
,/,
or/CC
risk/VB
arbitragers/NNS
,/,
dumped/VBD
every/DT
blue-chip/JJ
stock/NN
they/PRP
had/VBD
./.
While/IN
program/NN
trades/NNS
swiftly/RB
kicked/VBD
in/IN
,/,
a/DT
``/``
circuit/NN
breaker/NN
''/''
that/WDT
halted/VBD
trading/NN
in/IN
stock/NN
futures/NNS
in/IN
Chicago/NNP
made/VBD
some/DT

program/NN
trading/NN
impossible/JJ
./.
Susan/NNP
Del/NNP
Signore/NNP
,/,
head/NN
trader/NN
at/IN
Travelers/NNPS
Investment/NNP
Management/NNP
Co./NNP
,/,
says/VBZ
critics/NNS
are/VBP
ignoring/VBG
``/``
the/DT
role/NN
the/DT
takeover/NN
stock/NN
speculator/NN
is/VBZ
taking/VBG
in/IN
the/DT
market/NN
as/IN
a/DT
source/NN
of/IN
volatility/NN
./.
''/''
Many/JJ
arbs/NNS
are/VBP
``/``
overleveraged/JJ
,/,
''/''
she/PRP
says/VBZ
,/,
and/CC
they/PRP
``/``
have/VBP
to/TO
sell/VB
when/WRB
things/NNS
look/VBP
like/IN
they/PRP
fall/VBP
apart/RB
./.
''/''
Like/IN
virtually/RB
everything/NN
on/IN
Wall/NNP
Street/NNP
,/,
the/DT
program-trading/JJ
battle/NN
is/VBZ
over/IN
money/NN
,/,
and/CC
the/DT
traditionalists/NNS
have/VBP
been/VBN
losing/VBG
out/IN
on/IN
bundles/NNS
of/IN
it/PRP
to/TO
the/DT
New/NNP
Guard/NNP
in/IN
recent/JJ
years/NNS
./.
Take/VB
the/DT
traditional/JJ
money/NN
managers/NNS
,/,
or/CC
``/``
stock/NN
pickers/NNS
,/,
''/''
as/IN
they/PRP
are/VBP
derisively/RB
known/VBN
among/IN
the/DT
computer/NN
jockeys/NNS
./.
Traditional/JJ
stock/NN
managers/NNS
like/VBP
to/TO
charge/VB
50/CD
cents/NNS
to/TO
75/CD
cents/NNS
for/IN
every/DT
$/$
100/CD
they/PRP
manage/VBP
for/IN
big/JJ
institutional/JJ
investors/NNS
,/,
and/CC
higher/JJR
fees/NNS
for/IN
smaller/JJR
investors/NNS
./.
Yet/CC
many/JJ
such/JJ
managers/NNS
consistently/RB
fail/VBP
to/TO
even/RB
keep/VB
up/IN
with/IN
,/,
much/RB
less/JJR
beat/VB
,/,
the/DT
returns/NNS
of/IN
standard/JJ
benchmarks/NNS
like/IN
the/DT
S&P/NNP
Not/RB
surprisingly/RB
,/,
old-style/JJ
money/NN
managers/NNS
have/VBP
been/VBN
losing/VBG
clients/NNS
to/TO
giant/JJ
stock-index/NN
funds/NNS
that/WDT
use/VBP
computers/NNS
to/TO
juggle/VB
portfolios/NNS
so/IN
they/PRP
mirror/VBP
the/DT
S&P/NNP
500/CD
./.
The/DT
indexers/NNS
charge/VBP
only/RB
a/DT
few/JJ
pennies/NNS
per/IN
$/$
100/CD
managed/VBN
./.
Today/NN
,/,
about/IN
$/$
200/CD
billion/CD
,/,
or/CC
20/CD
%/NN
of/IN
all/DT
pension-fund/JJ
stock/NN
investments/NNS
,/,
is/VBZ
held/VBN
by/IN
index/NN
funds/NNS
./.
The/DT
new/JJ
Wall/NNP
Street/NNP
of/IN
computers/NNS
and/CC
automated/VBN
trading/NN
threatens/VBZ
to/TO
make/VB
dinosaurs/NNS
of/IN
the/DT
49/CD
Big/NNP
Board/NNP
stock-specialist/JJ
firms/NNS
./.
These/DT
small/JJ
but/CC
influential/JJ
floor/NN
brokers/NNS
long/RB
have/VBP
earned/VBN
fat/JJ
returns/NNS
of/IN
30/CD
%/NN
to/TO
40/CD
%/NN
a/DT
year/NN
on/IN
their/PRP$
capital/NN
,/,
by/IN
virtue/NN
of/IN
their/PRP$
monopoly/NN
in/IN
making/VBG
markets/NNS
in/IN
individual/JJ
stocks/NNS
./.
The/DT
specialists/NNS
see/VBP
any/DT
step/NN
to/TO
electronic/JJ
trading/NN
as/IN
a/DT
death/NN
knell/NN
./.
And/CC
they/PRP
believe/VBP
the/DT
Big/NNP
Board/NNP
,/,
under/IN
Mr./NNP
Phelan/NNP
,/,
has/VBZ
abandoned/VBN
their/PRP$
interest/NN
./.
The/DT
son/NN
of/IN
a/DT
specialist/NN
and/CC
once/RB
one/CD
himself/PRP
,/,
Mr./NNP
Phelan/NNP
has/VBZ
nonetheless/RB
been/VBN
striving/VBG
--/:
with/IN
products/NNS
like/IN
the/DT
new/JJ
stock/NN
basket/NN
that/IN
his/PRP$
former/JJ
colleagues/NNS
dislike/VBP
so/RB
much/RB
--/:
to/TO
keep/VB
index/NN
funds/NNS
and/CC
other/JJ
program/NN
traders/NNS
from/IN
taking/VBG
their/PRP$
business/NN
to/TO
overseas/JJ
markets/NNS
./.
Meanwhile/RB
,/,
specialists/NNS
'/POS
trading/NN
risks/NNS
have/VBP
skyrocketed/VBN
as/IN
a/DT
result/NN
of/IN
stock-market/NN
volatility/NN
./.
``/``
When/WRB
the/DT
sell/NN
programs/NNS
hit/VBP
,/,
you/PRP
can/MD
hear/VB
the/DT
order/NN
printers/NNS
start/VB
to/TO
go/VB
''/''
on/IN
the/DT
Big/NNP
Board/NNP
trading/NN
floor/NN
,/,
says/VBZ
one/CD
specialist/NN
there/RB
./.
``/``
The/DT
buyers/NNS
walk/VBP
away/RB
,/,
and/CC
the/DT
specialist/NN
is/VBZ
left/VBN
alone/RB
''/''
as/IN
the/DT
buyer/NN
of/IN
last/JJ
resort/NN
for/IN
his/PRP$
stable/NN
of/IN
stocks/NNS
,/,
he/PRP
contends/VBZ
./.
No/DT
one/NN
is/VBZ
more/RBR
unhappy/JJ
with/IN
program/NN
trading/NN
than/IN
the/DT
nation/NN
's/POS
stockbrokers/NNS
./.
They/PRP
are/VBP
still/RB
trying/VBG
to/TO
lure/VB
back/RB
small/JJ
investors/NNS
spooked/VBN
by/IN
the/DT
1987/CD
stock-market/NN
crash/NN
and/CC
the/DT
market/NN
's/POS
swings/NNS
since/IN
then/RB
./.
``/``
Small/JJ
investors/NNS
are/VBP
absolutely/RB
dismayed/JJ
that/IN
Wall/NNP
Street/NNP
is/VBZ
stacking/VBG
the/DT
deck/NN
against/IN
them/PRP
,/,
and/CC
these/DT
wide/JJ
swings/NNS
are/VBP
scaring/VBG
them/PRP
to/TO
death/NN
,/,
''/''
says/VBZ
Raymond/NNP
A./NNP
Mason/NNP
,/,
chairman/NN
of/IN
regional/JJ
broker/NN
Legg/NNP
Mason/NNP
Inc./NNP
in/IN
Baltimore/NNP
./.
Stockbrokers/NNS
'/POS
business/NN
and/CC
pay/NN
has/VBZ
been/VBN
falling/VBG
./.
Last/JJ
year/NN
,/,
the/DT
average/JJ
broker/NN
earned/VBD
$/$
71,309/CD
,/,
24/CD
%/NN
lower/JJR
than/IN
in/IN
1987/CD
./.
Corporate/JJ
executives/NNS
resent/VBP
that/IN
their/PRP$
company/NN
's/POS
stock/NN
has/VBZ
been/VBN
transformed/VBN
into/IN
a/DT
nameless/JJ
piece/NN
of/IN
a/DT
stock-index/NN
basket/NN
./.
Index/NN
traders/NNS
who/WP
buy/VBP
all/DT
500/CD
stocks/NNS
in/IN
the/DT
S&P/NNP
500/CD
often/RB
do/VBP
n't/RB
even/RB
know/VB
what/WP
the/DT
companies/NNS
they/PRP
own/VBP
actually/RB
do/VBP
,/,
complains/VBZ
Andrew/NNP
Sigler/NNP
,/,
chairman/NN
of/IN
Champion/NNP
International/NNP
Corp/NNP
./.
``/``
Do/VBP
you/PRP
make/VB
sweatshirts/NNS
or/CC
sparkplugs/NNS
?/.
Oh/UH
,/,
you/PRP
're/VBP
in/IN
the/DT
paper/NN
business/NN
,/,
''/''
is/VBZ
one/CD
reaction/NN
Mr./NNP
Sigler/NNP
says/VBZ
he/PRP
's/VBZ
gotten/VBN
from/IN
his/PRP$
big/JJ
institutional/JJ
shareholders/NNS
./.
By/IN
this/DT
September/NNP
,/,
program/NN
traders/NNS
were/VBD
doing/VBG
a/DT
record/NN
13.8/CD
%/NN
of/IN
the/DT
Big/NNP
Board/NNP
's/POS
average/JJ
daily/JJ
trading/NN
volume/NN
./.
Among/IN
the/DT
top/JJ
practitioners/NNS
were/VBD
Wall/NNP
Street/NNP
blue/JJ
bloods/NNS
:/:
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
,/,
Kidder/NNP
Peabody/NNP
,/,
Merrill/NNP
Lynch/NNP
,/,
Salomon/NNP
Brothers/NNPS
Inc./NNP
and/CC
PaineWebber/NNP
Group/NNP
Inc/NNP
./.
But/CC
then/RB
came/VBD
Oct./NNP
13/CD
and/CC
the/DT
negative/JJ
publicity/NN
orchestrated/VBN
by/IN
the/DT
Old/NNP
Guard/NNP
,/,
particularly/RB
against/IN
index/NN
arbitrage/NN
./.
The/DT
indexers/NNS
'/POS
strategy/NN
for/IN
the/DT
moment/NN
is/VBZ
to/TO
hunker/VB
down/IN
and/CC
let/VB
the/DT
furor/NN
die/VB
./.
``/``
There/EX
's/VBZ
a/DT
lynch-mob/JJ
psychology/NN
right/RB
now/RB
,/,
''/''
says/VBZ
the/DT
top/JJ
program-trading/JJ
official/NN
at/IN
a/DT
Wall/NNP
Street/NNP
firm/NN
./.
``/``
Wall/NNP
Street/NNP
's/POS
cash/NN
cow/NN
has/VBZ
been/VBN
gored/VBN
,/,
but/CC
I/PRP
do/VBP
n't/RB
think/VB
anyone/NN
has/VBZ
proven/VBN
that/IN
index/NN
arbitrage/NN
is/VBZ
the/DT
problem/NN
./.
''/''
Too/RB
much/JJ
money/NN
is/VBZ
at/IN
stake/NN
for/IN
program/NN
traders/NNS
to/TO
give/VB
up/IN
./.
For/IN
example/NN
,/,
stock-index/NN
futures/NNS
began/VBD
trading/VBG
in/IN
Chicago/NNP
in/IN
1982/CD
,/,
and/CC
within/IN
two/CD
years/NNS
they/PRP
were/VBD
the/DT
fastest-growing/JJ
futures/NNS
contract/NN
ever/RB
launched/VBN
./.
Stock/NN
futures/NNS
trading/NN
has/VBZ
minted/VBN
dozens/NNS
of/IN
millionaires/NNS
in/IN
their/PRP$
20s/CD
and/CC
30s/CD
./.
Now/RB
,/,
on/IN
a/DT
good/JJ
day/NN
,/,
Chicago/NNP
's/POS
stock-index/NN
traders/NNS
trade/VBP
more/JJR
dollars/NNS
worth/NN
of/IN
stock/NN
futures/NNS
than/IN
the/DT
Big/NNP
Board/NNP
trades/VBZ
in/IN
stock/NN
./.
Now/RB
the/DT
stage/NN
is/VBZ
set/VBN
for/IN
the/DT
battle/NN
to/TO
play/VB
out/IN
./.
The/DT
anti-programmers/NNS
are/VBP
getting/VBG
some/DT
helpful/JJ
thunder/NN
from/IN
Congress/NNP
./.
Program/NN
traders/NNS
'/POS
``/``
power/NN
to/TO
create/VB
total/JJ
panic/NN
is/VBZ
so/RB
great/JJ
that/IN
they/PRP
ca/MD
n't/RB
be/VB
allowed/VBN
to/TO
have/VB
their/PRP$
way/NN
,/,
''/''
says/VBZ
Rep./NNP
Edward/NNP
Markey/NNP
,/,
a/DT
Massachusetts/NNP
Democrat/NNP
./.
``/``
We/PRP
have/VBP
to/TO
have/VB
a/DT
system/NN
that/WDT
says/VBZ
to/TO
those/DT
largest/JJS
investors/NNS
:/:
`/``
Sit/VB
down/RB
!/.
You/PRP
will/MD
not/RB
panic/VB
,/,
you/PRP
will/MD
not/RB
put/VB
the/DT
financial/JJ
system/NN
in/IN
jeopardy/NN
./.
'/''
''/''
But/CC
the/DT
prospects/NNS
for/IN
legislation/NN
that/WDT
targets/VBZ
program/NN
trading/NN
is/VBZ
unlikely/JJ
anytime/RB
soon/RB
./.
Many/JJ
people/NNS
,/,
including/VBG
the/DT
Big/NNP
Board/NNP
,/,
think/VBP
that/IN
it/PRP
's/VBZ
too/RB
late/JJ
to/TO
put/VB
the/DT
genie/NN
back/RB
in/IN
the/DT
bottle/NN
./.
The/DT
Big/NNP
Board/NNP
's/POS
directors/NNS
meet/VBP
today/NN
to/TO
approve/VB
some/DT
program-trading/JJ
restrictions/NNS
,/,
but/CC
a/DT
total/JJ
ban/NN
is/VBZ
n't/RB
being/VBG
considered/VBN
,/,
Big/NNP
Board/NNP
officials/NNS
say/VBP
./.
``/``
You/PRP
're/VBP
not/RB
going/VBG
to/TO
stop/VB
the/DT
idea/NN
of/IN
trading/VBG
a/DT
basket/NN
of/IN
stocks/NNS
,/,
''/''
says/VBZ
Vanderbilt/NNP
's/POS
Prof./NNP
Stoll/NNP
./.
``/``
Program/NN
trading/NN
is/VBZ
here/RB
to/TO
stay/VB
,/,
and/CC
computers/NNS
are/VBP
here/RB
to/TO
stay/VB
,/,
and/CC
we/PRP
just/RB
need/VBP
to/TO
understand/VB
it/PRP
./.
''/''
Short/JJ
of/IN
a/DT
total/NN
ban/NN
,/,
some/DT
anti-programmers/NNS
have/VBP
proposed/VBN
several/JJ
middle-ground/JJ
reforms/NNS
,/,
which/WDT
they/PRP
say/VBP
would/MD
take/VB
away/RB
certain/JJ
advantages/NNS
program/NN
traders/NNS
currently/RB
enjoy/VBP
in/IN
the/DT
marketplace/NN
that/IN
other/JJ
investors/NNS
do/VBP
n't/RB
./.
One/CD
such/JJ
proposal/NN
regarding/VBG
stock-index/NN
futures/NNS
is/VBZ
an/DT
increase/NN
in/IN
the/DT
margin/NN
requirement/NN
--/:
or/CC
the/DT
``/``
good-faith/NN
''/''
payment/NN
of/IN
cash/NN
needed/VBN
to/TO
trade/VB
them/PRP
--/:
to/TO
about/IN
the/DT
same/JJ
level/NN
as/IN
the/DT
margin/NN
requirement/NN
for/IN
stocks/NNS
./.
Currently/RB
,/,
margins/NNS
on/IN
stock/NN
futures/NNS
purchases/NNS
are/VBP
much/RB
lower/JJR
--/:
roughly/RB
7/CD
%/NN
compared/VBN
with/IN
50/CD
%/NN
for/IN
stocks/NNS
--/:
making/VBG
the/DT
futures/NNS
market/NN
much/RB
faster/JJR
and/CC
potentially/RB
more/RBR
speculative/JJ
./.
Program/NN
trading/NN
critics/NNS
also/RB
want/VBP
the/DT
Federal/NNP
Reserve/NNP
Board/NNP
,/,
rather/RB
than/IN
the/DT
futures/NNS
industry/NN
,/,
to/TO
set/VB
such/JJ
margins/NNS
./.
Futures/NNS
traders/NNS
respond/VBP
that/IN
low/JJ
margins/NNS
help/VBP
keep/VB
their/PRP$
markets/NNS
active/JJ
./.
Higher/JJR
margins/NNS
would/MD
chase/VB
away/RB
dozens/NNS
of/IN
smaller/JJR
traders/NNS
who/WP
help/VBP
larger/JJR
traders/NNS
buy/VB
and/CC
sell/VB
,/,
they/PRP
say/VBP
./.
Another/DT
proposed/VBN
reform/NN
is/VBZ
to/TO
have/VB
program/NN
traders/NNS
answer/VB
to/TO
an/DT
``/``
uptick/NN
rule/NN
''/''
a/DT
reform/NN
instituted/VBN
after/IN
the/DT
Great/NNP
Crash/NNP
of/IN
1929/CD
that/WDT
protects/VBZ
against/IN
stocks/NNS
being/VBG
relentlessly/RB
beaten/VBN
downward/RB
by/IN
those/DT
seeking/VBG
to/TO
profit/VB
from/IN
lower/JJR
prices/NNS
,/,
namely/RB
short/JJ
sellers/NNS
./.
The/DT
Big/NNP
Board/NNP
's/POS
uptick/NN
rule/NN
prevents/VBZ
the/DT
short/JJ
sale/NN
of/IN
a/DT
stock/NN
when/WRB
the/DT
stock/NN
is/VBZ
falling/VBG
in/IN
price/NN
./.
But/CC
in/IN
1986/CD
,/,
program/NN
traders/NNS
received/VBD
what/WP
amounted/VBD
to/TO
an/DT
exemption/NN
from/IN
the/DT
uptick/NN
rule/NN
in/IN
certain/JJ
situations/NNS
,/,
to/TO
make/VB
it/PRP
easier/JJR
to/TO
link/VB
the/DT
stock/NN
and/CC
futures/NNS
markets/NNS
./.
A/DT
reinstatement/NN
of/IN
the/DT
uptick/NN
rule/NN
for/IN
program/NN
traders/NNS
would/MD
slow/VB
their/PRP$
activity/NN
considerably/RB
./.
Program/NN
traders/NNS
argue/VBP
that/IN
a/DT
reinstatement/NN
of/IN
the/DT
rule/NN
would/MD
destroy/VB
the/DT
``/``
pricing/NN
efficiency/NN
''/''
of/IN
the/DT
futures/NNS
and/CC
stock/NN
markets/NNS
./.
James/NNP
A./NNP
White/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Fundamentalists/NNPS
Jihad/NNP
Big/NNP
Board/NNP
Chairman/NNP
John/NNP
Phelan/NNP
said/VBD
yesterday/NN
that/IN
he/PRP
could/MD
support/VB
letting/VBG
federal/JJ
regulators/NNS
suspend/VB
program/NN
trading/NN
during/IN
wild/JJ
stock-price/NN
swings/NNS
./.
Thus/RB
the/DT
band-wagon/JJ
psychology/NN
of/IN
recent/JJ
days/NNS
picks/VBZ
up/IN
new/JJ
impetus/NN
./.
Index/NN
arbitrage/NN
is/VBZ
a/DT
common/JJ
form/NN
of/IN
program/NN
trading/NN
./.
As/IN
usually/RB
practiced/VBN
it/PRP
takes/VBZ
advantage/NN
of/IN
a/DT
rather/RB
basic/JJ
concept/NN
:/:
Two/CD
separate/JJ
markets/NNS
in/IN
different/JJ
locations/NNS
,/,
trading/VBG
basically/RB
the/DT
same/JJ
widgets/NNS
,/,
ca/MD
n't/RB
trade/VB
them/PRP
for/IN
long/RB
at/IN
prices/NNS
that/WDT
are/VBP
widely/RB
different/JJ
./.
In/IN
index/NN
arbitrage/NN
,/,
the/DT
widget/NN
is/VBZ
the/DT
S&P/NNP
500/CD
,/,
and/CC
its/PRP$
price/NN
is/VBZ
constantly/RB
compared/VBN
between/IN
the/DT
futures/NNS
market/NN
in/IN
Chicago/NNP
and/CC
the/DT
stock/NN
markets/NNS
largely/RB
in/IN
New/NNP
York/NNP
./.
To/TO
profit/VB
from/IN
an/DT
index-arbitrage/JJ
opportunity/NN
,/,
someone/NN
who/WP
owns/VBZ
the/DT
S&P/NNP
500/CD
widget/NN
in/IN
New/NNP
York/NNP
must/MD
sell/VB
it/PRP
and/CC
replace/VB
it/PRP
with/IN
a/DT
cheaper/JJR
S&P/NNP
500/CD
widget/NN
in/IN
Chicago/NNP
./.
If/IN
the/DT
money/NN
manager/NN
performing/VBG
this/DT
service/NN
is/VBZ
being/VBG
paid/VBN
by/IN
his/PRP$
clients/NNS
to/TO
match/VB
or/CC
beat/VB
the/DT
return/NN
of/IN
the/DT
S&P/NNP
500/CD
index/NN
,/,
he/PRP
is/VBZ
likely/JJ
to/TO
remain/VB
fully/RB
invested/VBN
at/IN
all/DT
times/NNS
./.
Few/JJ
,/,
if/IN
any/DT
,/,
index-fund/JJ
managers/NNS
will/MD
risk/VB
leveraging/VBG
performance/NN
by/IN
owning/VBG
more/JJR
than/IN
100/CD
%/NN
exposure/NN
to/TO
stocks/NNS
,/,
and/CC
equally/RB
few/JJ
will/MD
want/VB
to/TO
own/VB
less/JJR
than/IN
a/DT
100/CD
%/NN
position/NN
should/MD
stocks/NNS
rise/VB
./.
By/IN
constantly/RB
seeking/VBG
to/TO
own/VB
the/DT
cheapest/JJS
widget/NN
,/,
index-arbitrage/JJ
traders/NNS
hope/VBP
to/TO

add/VB
between/IN
1/CD
%/NN
and/CC
3/CD
%/NN
to/TO
the/DT
annual/JJ
return/NN
of/IN
the/DT
S&P/NNP
500/CD
./.
That/DT
represents/VBZ
a/DT
very/RB
thin/JJ
``/``
excess/JJ
''/''
return/NN
,/,
certainly/RB
far/RB
less/JJR
than/IN
what/WP
most/RBS
fundamental/JJ
stock/NN
pickers/NNS
claim/VBP
to/TO
seek/VB
as/IN
their/PRP$
performance/NN
objective/NN
./.
The/DT
fact/NN
that/IN
a/DT
vast/JJ
majority/NN
of/IN
fundamentalist/JJ
money/NN
managers/NNS
fail/VBP
to/TO
beat/VB
the/DT
S&P/NNP
500/CD
may/MD
contribute/VB
to/TO
the/DT
hysteria/NN
surrounding/VBG
the/DT
issue/NN
./.
As/IN
more/JJR
managers/NNS
pursue/VBP
the/DT
index-arbitrage/JJ
strategy/NN
,/,
these/DT
small/JJ
opportunities/NNS
between/IN
markets/NNS
will/MD
be/VB
reduced/VBN
and/CC
,/,
eventually/RB
,/,
eliminated/VBN
./.
The/DT
current/JJ
opportunities/NNS
arise/VBP
because/IN
the/DT
process/NN
for/IN
executing/VBG
a/DT
buy/NN
or/CC
sell/NN
order/NN
in/IN
the/DT
actual/JJ
stocks/NNS
that/WDT
make/VBP
up/RP
the/DT
S&P/NNP
500/CD
is/VBZ
more/RBR
cumbersome/JJ
than/IN
transacting/VBG
in/IN
the/DT
futures/NNS
market/NN
./.
The/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
's/POS
attempt/NN
to/TO
introduce/VB
a/DT
new/JJ
portfolio/NN
basket/NN
is/VBZ
evidence/NN
of/IN
investors/NNS
'/POS
desires/NNS
to/TO
make/VB
fast/JJ
and/CC
easy/JJ
transactions/NNS
of/IN
large/JJ
numbers/NNS
of/IN
shares/NNS
./.
So/RB
if/IN
index/NN
arbitrage/NN
is/VBZ
simply/RB
taking/VBG
advantage/NN
of/IN
thin/JJ
inefficiencies/NNS
between/IN
two/CD
markets/NNS
for/IN
the/DT
same/JJ
widget/NN
,/,
how/WRB
did/VBD
``/``
program/NN
trading/NN
''/''
evolve/VB
into/IN
the/DT
evil/JJ
creature/NN
that/WDT
is/VBZ
evoking/VBG
the/DT
curses/NNS
of/IN
so/RB
many/JJ
observers/NNS
?/.
All/DT
arguments/NNS
against/IN
program/NN
trading/NN
,/,
even/RB
those/DT
pressed/VBN
without/IN
fact/NN
,/,
conclude/VBP
with/IN
three/CD
expected/VBN
results/NNS
after/IN
``/``
reforms/NNS
''/''
are/VBP
implemented/VBN
:/:
1/LS
volatility/NN
,/,
2/LS
a/DT
long-term/JJ
investment/NN
focus/NN
,/,
and/CC
3/LS
a/DT
level/NN
playing/NN
field/NN
for/IN
the/DT
small/JJ
investor/NN
./.
But/CC
many/JJ
of/IN
these/DT
reforms/NNS
are/VBP
unneeded/JJ
,/,
even/RB
harmful/JJ
./.
Reducing/VBG
volatility/NN
./.
An/DT
index-arbitrage/JJ
trade/NN
is/VBZ
never/RB
executed/VBN
unless/IN
there/EX
is/VBZ
sufficient/JJ
difference/NN
between/IN
the/DT
markets/NNS
in/IN
New/NNP
York/NNP
and/CC
Chicago/NNP
to/TO
cover/VB
all/DT
transaction/NN
costs/NNS
./.
Arbitrage/NN
does/VBZ
n't/RB
cause/VB
volatility/NN
;/:
it/PRP
responds/VBZ
to/TO
it/PRP
./.
Think/VB
about/IN
what/WP
causes/VBZ
the/DT
difference/NN
in/IN
prices/NNS
between/IN
the/DT
two/CD
markets/NNS
for/IN
S&P/NNP
500/CD
stocks/NNS
--/:
usually/RB
it/PRP
is/VBZ
large/JJ
investors/NNS
initiating/VBG
a/DT
buy/NN
or/CC
sell/NN
in/IN
Chicago/NNP
./.
A/DT
large/JJ
investor/NN
will/MD
likely/RB
cause/VB
the/DT
futures/NNS
market/NN
to/TO
decline/VB
when/WRB
he/PRP
sells/VBZ
his/PRP$
futures/NNS
./.
Arbitrage/NN
simply/RB
transfers/VBZ
his/PRP$
selling/NN
pressure/NN
from/IN
Chicago/NNP
to/TO
New/NNP
York/NNP
,/,
while/IN
functioning/VBG
as/IN
a/DT
buyer/NN
in/IN
Chicago/NNP
./.
The/DT
start/NN
of/IN
the/DT
whole/JJ
process/NN
is/VBZ
the/DT
key/NN
-/:
someone/NN
must/MD
fundamentally/RB
increase/VB
or/CC
decrease/VB
his/PRP$
ownership/NN
in/IN
widgets/NNS
to/TO
make/VB
widget/NN
prices/NNS
move/VB
./.
Why/WRB
does/VBZ
this/DT
large/JJ
hypothetical/JJ
seller/NN
trade/VB
in/IN
Chicago/NNP
instead/RB
of/IN
New/NNP
York/NNP
?/.
Perhaps/RB
he/PRP
is/VBZ
willing/JJ
to/TO
sacrifice/VB
to/TO
the/DT
arbitrage/NN
trader/NN
some/DT
small/JJ
profit/NN
in/IN
order/NN
to/TO
get/VB
quick/JJ
and/CC
certain/JJ
execution/NN
of/IN
his/PRP$
large/JJ
trade/NN
./.
In/IN
a/DT
competitive/JJ
market/NN
,/,
this/DT
investor/NN
has/VBZ
many/JJ
ways/NNS
to/TO
execute/VB
his/PRP$
transactions/NNS
,/,
and/CC
he/PRP
will/MD
have/VB
more/JJR
alternatives/NNS
both/DT
foreign/JJ
and/CC
domestic/JJ
his/PRP$
volume/NN
is/VBZ
profitable/JJ
for/IN
an/DT
exchange/NN
to/TO
handle/VB
./.
If/IN
not/RB
Chicago/NNP
,/,
then/RB
in/IN
New/NNP
York/NNP
;/:
if/IN
not/RB
the/DT
U.S./NNP
,/,
then/RB
overseas/RB
./.
Volatility/NN
surrounding/VBG
his/PRP$
trades/NNS
occurs/VBZ
not/RB
because/IN
of/IN
index/NN
arbitrage/NN
,/,
but/CC
because/IN
his/PRP$
is/VBZ
a/DT
large/JJ
addition/NN
or/CC
subtraction/NN
to/TO
a/DT
widget/NN
market/NN
with/IN
finite/JJ
liquidity/NN
./.
Eliminate/VB
arbitrage/NN
and/CC
liquidity/NN
will/MD
decline/VB
instead/RB
of/IN
rising/VBG
,/,
creating/VBG
more/JJR
volatility/NN
instead/RB
of/IN
less/JJR
./.
The/DT
speed/NN
of/IN
his/PRP$
transaction/NN
is/VBZ
n't/RB
to/TO
be/VB
feared/VBN
either/RB
,/,
because/IN
faster/JJR
and/CC
cleaner/JJR
execution/NN
is/VBZ
desirable/JJ
,/,
not/RB
loathsome/JJ
./.
If/IN
slowing/VBG
things/NNS
down/IN
could/MD
reduce/VB
volatility/NN
,/,
stone/NN
tablets/NNS
should/MD
become/VB
the/DT
trade/NN
ticket/NN
of/IN
the/DT
future/NN
./.
Encouraging/VBG
long-term/JJ
investing/NN
./.
We/PRP
must/MD
be/VB
very/RB
cautious/JJ
about/IN
labeling/VBG
investors/NNS
as/IN
``/``
long-term/JJ
''/''
or/CC
``/``
short-term/JJ
./.
''/''
Policies/NNS
designed/VBN
to/TO
encourage/VB
one/CD
type/NN
of/IN
investor/NN
over/IN
another/DT
are/VBP
akin/JJ
to/TO
placing/VBG
a/DT
sign/NN
over/IN
the/DT
Big/NNP
Board/NNP
's/POS
door/NN
saying/VBG
:/:
``/``
Buyers/NNS
welcome/VB
,/,
sellers/NNS
please/VB
go/VB
away/RB
!/.
''/''
The/DT
ultimate/JJ
goal/NN
of/IN
any/DT
investor/NN
is/VBZ
a/DT
profit/NN
motive/NN
,/,
and/CC
regulators/NNS
should/MD
not/RB
concern/VB
themselves/PRP
with/IN
whether/IN
investors/NNS
are/VBP
sufficiently/RB
focused/VBN
on/IN
the/DT
long/JJ
term/NN
./.
A/DT
free/JJ
market/NN
with/IN
a/DT
profit/NN
motive/NN
will/MD
attract/VB
each/DT
investor/NN
to/TO
the/DT
liquidity/NN
and/CC
risks/NNS
he/PRP
can/MD
tolerate/VB
./.
In/IN
point/NN
of/IN
fact/NN
,/,
volatility/NN
as/IN
measured/VBN
by/IN
the/DT
annualized/JJ
standard/JJ
deviation/NN
of/IN
daily/JJ
stock/NN
price/NN
movements/NNS
has/VBZ
frequently/RB
been/VBN
much/RB
higher/JJR
than/IN
it/PRP
is/VBZ
today/NN
./.
Periods/NNS
before/IN
the/DT
advent/NN
of/IN
futures/NNS
or/CC
program/NN
trading/NN
were/VBD
often/RB
more/RBR
volatile/JJ
,/,
usually/RB
when/WRB
fundamental/JJ
market/NN
conditions/NNS
were/VBD
undergoing/VBG
change/NN
1973-75/CD
,/,
1937-40/CD
,/,
and/CC
1928-33/CD
for/IN
example/NN
It/PRP
is/VBZ
interesting/JJ
to/TO
see/VB
the/DT
fundamental/JJ
stock/NN
pickers/NNS
scream/VB
``/``
foul/JJ
''/''
on/IN
program/NN
trading/NN
when/WRB
the/DT
markets/NNS
decline/VBP
,/,
while/IN
hailing/VBG
the/DT
great/JJ
values/NNS
still/RB
abounding/VBG
as/IN
the/DT
markets/NNS
rise/VBP
./.
Could/MD
rising/VBG
volatility/NN
possibly/RB
be/VB
related/VBN
to/TO
uncertainty/NN
about/IN
the/DT
economics/NNS
of/IN
stocks/NNS
,/,
instead/RB
of/IN
the/DT
evil/JJ
deeds/NNS
of/IN
program-trading/NN
goblins/NNS
?/.
Some/DT
of/IN
the/DT
proposed/VBN
fixes/NNS
for/IN
what/WP
is/VBZ
labeled/VBN
``/``
program-trading/NN
volatility/NN
''/''
could/MD
be/VB
far/RB
worse/JJR
than/IN
the/DT
perceived/VBN
problem/NN
./.
In/IN
using/VBG
program/NN
trading/NN
as/IN
a/DT
whipping/JJ
boy/NN
,/,
fundamentalist/JJ
investors/NNS
stand/VBP
to/TO
gain/VB
the/DT
high/JJ
ground/NN
in/IN
wooing/VBG
small/JJ
investors/NNS
for/IN
their/PRP$
existing/VBG
stock-selection/JJ
products/NNS
./.
They/PRP
may/MD
,/,
however/RB
,/,
risk/VB
bringing/VBG
some/DT
damaging/JJ
interference/NN
from/IN
outside/IN
the/DT
markets/NNS
themselves/PRP
./.
How/WRB
does/VBZ
a/DT
nice/JJ
new/JJ
tax/NN
,/,
say/VB
5/CD
%/NN
,/,
on/IN
any/DT
financial/JJ
transaction/NN
sound/VB
?/.
That/DT
ought/MD
to/TO
make/VB
sure/JJ
we/PRP
're/VBP
all/DT
thinking/VBG
for/IN
the/DT
long/JJ
term/NN
./.
Getting/VBG
a/DT
level/NN
playing/NN
field/NN
./.
This/DT
argument/NN
is/VBZ
perhaps/RB
the/DT
most/RBS
interesting/JJ
one/CD
for/IN
abolishing/VBG
program/NN
trading/NN
--/:
not/RB
because/IN
of/IN
its/PRP$
merits/NNS
,/,
but/CC
because/IN
of/IN
the/DT
firms/NNS
championing/VBG
the/DT
cause/NN
./.
The/DT
loudest/JJS
of/IN
these/DT
reformers/NNS
are/VBP
money/NN
managers/NNS
who/WP
cater/VBP
to/TO
smaller/JJR
investors/NNS
./.
They/PRP
continually/RB
advise/VBP
their/PRP$
clients/NNS
on/IN
which/WDT
individual/JJ
stocks/NNS
to/TO
buy/VB
or/CC
sell/VB
,/,
while/IN
their/PRP$
clients/NNS
continue/VBP
to/TO
hope/VB
for/IN
superior/JJ
performance/NN
./.
Even/RB
with/IN
mutual/JJ
funds/NNS
,/,
the/DT
little/JJ
investor/NN
continues/VBZ
to/TO
tolerate/VB
high/JJ
fees/NNS
,/,
high/JJ
commissions/NNS
and/CC
poor/JJ
performance/NN
,/,
while/IN
index-fund/NN
managers/NNS
slowly/RB
amass/VBP
a/DT
better/JJR
record/NN
with/IN
lower/JJR
fees/NNS
,/,
lower/JJR
commissions/NNS
and/CC
less/JJR
risk/NN
./.
Yet/CC
our/PRP$
efforts/NNS
are/VBP
somehow/RB
less/RBR
noble/JJ
than/IN
those/DT
of/IN
an/DT
investment/NN
expert/NN
studiously/RB
devouring/VBG
press/NN
clippings/NNS
on/IN
each/DT
company/NN
he/PRP
follows/VBZ
./.
Almost/RB
all/DT
new/JJ
regulation/NN
is/VBZ
introduced/VBN
in/IN
the/DT
interests/NNS
of/IN
protecting/VBG
the/DT
little/JJ
guy/NN
,/,
and/CC
he/PRP
invariably/RB
is/VBZ
the/DT
one/CD
least/JJS
able/JJ
to/TO
cope/VB
with/IN
its/PRP$
consequences/NNS
./.
If/IN
spreads/NNS
available/JJ
from/IN
index/NN
arbitrage/NN
are/VBP
so/RB
enormous/JJ
,/,
surely/RB
any/DT
sizable/JJ
mutual-fund/NN
company/NN
could/MD
profit/VB
from/IN
offering/VBG
it/PRP
to/TO
small/JJ
investors/NNS
./.
The/DT
sad/JJ
reality/NN
is/VBZ
that/IN
the/DT
retail/JJ
investor/NN
continues/VBZ
to/TO
pursue/VB
stellar/JJ
performers/NNS
first/RB
,/,
while/IN
leaving/VBG
institutions/NNS
to/TO
grapple/VB
with/IN
basis/NN
points/NNS
of/IN
performance/NN
on/IN
large/JJ
sums/NNS
of/IN
money/NN
quarter/NN
by/IN
quarter/NN
./.
Cost-effective/JJ
index/NN
funds/NNS
just/RB
are/VBP
n't/RB
sexy/JJ
enough/RB
to/TO
justify/VB
the/DT
high/JJ
fees/NNS
and/CC
commissions/NNS
that/IN
retail/JJ
customers/NNS
frequently/RB
pay/VBP
,/,
and/CC
that/IN
institutional/JJ
customers/NNS
refuse/VBP
to/TO
pay/VB
./.
Each/DT
new/JJ
trading/NN
roadblock/NN
is/VBZ
likely/JJ
to/TO
be/VB
beaten/VBN
by/IN
institutions/NNS
seeking/VBG
better/JJR
ways/NNS
to/TO
serve/VB
their/PRP$
high-volume/JJ
clients/NNS
,/,
here/RB
or/CC
overseas/RB
./.
Legislating/VBG
new/JJ
trading/NN
inefficiencies/NNS
will/MD
only/RB
make/VB
things/NNS
harder/JJR
on/IN
the/DT
least/JJS
sophisticated/JJ
investors/NNS
./.
So/RB
what/WP
is/VBZ
next/JJ
for/IN
program/NN
trading/NN
?/.
Left/VBN
to/TO
its/PRP$
own/JJ
devices/NNS
,/,
index/NN
arbitrage/NN
will/MD
become/VB
more/RBR
and/CC
more/RBR
efficient/JJ
,/,
making/VBG
it/PRP
harder/JJR
and/CC
harder/JJR
to/TO
do/VB
profitably/RB
./.
Spreads/NNS
will/MD
become/VB
so/RB
tight/RB
that/IN
it/PRP
wo/MD
n't/RB
matter/VB
which/WDT
market/NN
an/DT
investor/NN
chooses/VBZ
--/:
arbitrage/NN
will/MD
prevent/VB
him/PRP
from/IN
gaining/VBG
any/DT
temporary/JJ
profit/NN
./.
If/IN
government/NN
or/CC
private/JJ
watchdogs/NNS
insist/VBP
,/,
however/RB
,/,
on/IN
introducing/VBG
greater/JJR
friction/NN
between/IN
the/DT
markets/NNS
limits/NNS
on/IN
price/NN
moves/NNS
,/,
two-tiered/JJ
execution/NN
,/,
higher/JJR
margin/NN
requirements/NNS
,/,
taxation/NN
,/,
etc./FW
the/DT
end/NN
loser/NN
will/MD
be/VB
the/DT
markets/NNS
themselves/PRP
./.
Instead/RB
,/,
we/PRP
ought/MD
to/TO
be/VB
inviting/VBG
more/JJR
liquidity/NN
with/IN
cheaper/JJR
ways/NNS
to/TO
trade/VB
and/CC
transfer/VB
capital/NN
among/IN
all/DT
participants/NNS
./.
Mr./NNP
Allen/NNP
's/POS
Pittsburgh/NNP
firm/NN
,/,
Advanced/NNP
Investment/NNP
Management/NNP
Inc./NNP
,/,
executes/VBZ
program/NN
trades/NNS
for/IN
institutions/NNS
./.
Some/DT
Democrats/NNPS
in/IN
Congress/NNP
are/VBP
warning/VBG
that/IN
a/DT
complicated/JJ
new/JJ
funding/NN
device/NN
for/IN
the/DT
two/CD
federal/JJ
antitrust/JJ
agencies/NNS
could/MD
result/VB
in/IN
further/JJR
cutbacks/NNS
in/IN
a/DT
regulatory/JJ
area/NN
already/RB
reduced/VBN
sharply/RB
in/IN
recent/JJ
years/NNS
./.
The/DT
funding/NN
mechanism/NN
,/,
which/WDT
has/VBZ
received/VBN
congressional/JJ
approval/NN
and/CC
is/VBZ
expected/VBN
to/TO
be/VB
signed/VBN
by/IN
President/NNP
Bush/NNP
,/,
would/MD
affect/VB
the/DT
antitrust/JJ
operations/NNS
of/IN
the/DT
Justice/NNP
Department/NNP
and/CC
the/DT
Federal/NNP
Trade/NNP
Commission/NNP
./.
As/IN
a/DT
part/NN
of/IN
overall/JJ
efforts/NNS
to/TO
reduce/VB
spending/NN
,/,
Congress/NNP
cut/VBD
by/IN
$/$
30/CD
million/CD
the/DT
Bush/NNP
administration/NN
's/POS
request/NN
for/IN
antitrust/JJ
enforcement/NN
for/IN
fiscal/JJ
1990/CD
,/,
which/WDT
began/VBD
Oct./NNP
1/CD
./.
To/TO
offset/VB
the/DT
reduction/NN
,/,
Congress/NNP
approved/VBD
a/DT
$/$
20,000/CD
fee/NN
that/IN
investors/NNS
and/CC
companies/NNS
will/MD
have/VB
to/TO
pay/VB
each/DT
time/NN
they/PRP
make/VBP
required/VBN
filings/NNS
to/TO
antitrust/JJ
regulators/NNS
about/IN
mergers/NNS
,/,
acquisitions/NNS
and/CC
certain/JJ
other/JJ
transactions/NNS
./.
Some/RB
Democrats/NNPS
,/,
led/VBN
by/IN
Rep./NNP
Jack/NNP
Brooks/NNP
D./NNP
,/,
Texas/NNP
the/DT
measure/NN
because/IN
they/PRP
fear/VBP
that/IN
the/DT
fees/NNS
may/MD
not/RB
fully/RB
make/VB
up/IN
for/IN
the/DT
budget/NN
cuts/NNS
./.
But/CC
Justice/NNP
Department/NNP
and/CC
FTC/NNP
officials/NNS
said/VBD
they/PRP
expect/VBP
the/DT
filing/NN
fees/NNS
to/TO
make/VB
up/IN
for/IN
the/DT
budget/NN
reductions/NNS
and/CC
possibly/RB
exceed/VB
them/PRP
./.
``/``
It/PRP
could/MD
operate/VB
to/TO
augment/VB
our/PRP$
budget/NN
,/,
''/''
James/NNP
Rill/NNP
,/,
the/DT
Justice/NNP
Department/NNP
's/POS
antitrust/JJ
chief/NN
,/,
said/VBD
in/IN
an/DT
interview/NN
./.
Under/IN
measures/NNS
approved/VBN
by/IN
both/DT
houses/NNS
of/IN
Congress/NNP
,/,
the/DT
administration/NN
's/POS
request/NN
for/IN
$/$
47/CD
million/CD
for/IN
the/DT
Antitrust/NNP
Division/NNP
would/MD
be/VB
cut/VBN
$/$
15/CD
million/CD
./.
The/DT
FTC/NNP
budget/NN
request/NN
of/IN
$/$
70/CD
million/CD
,/,
about/IN
$/$
34/CD
million/CD
of/IN
which/WDT
would/MD
go/VB
for/IN
antitrust/JJ
enforcement/NN
,/,
would/MD
also/RB
be/VB
cut/VBN
by/IN
$/$
15/CD
million/CD
./.
The/DT
administration/NN
had/VBD
requested/VBN
roughly/RB
the/DT
same/JJ
amount/NN
for/IN
antitrust/JJ
enforcement/NN
for/IN
fiscal/JJ
1990/CD
as/IN
was/VBD
appropriated/VBN
in/IN
fiscal/JJ
1989/CD
./.
The/DT
offsetting/VBG
fees/NNS
would/MD
apply/VB
to/TO
filings/NNS
made/VBN
under/IN
the/DT
Hart-Scott-Rodino/NNP
Act/NNP
./.
Under/IN
that/DT
law/NN
,/,
parties/NNS
proposing/VBG
mergers/NNS
or/CC
acquisitions/NNS
valued/VBN
at/IN
$/$
15/CD
million/CD
or/CC
more/RBR
must/MD
notify/VB
FTC/NNP
and/CC
Justice/NNP
Department/NNP
antitrust/JJ
regulators/NNS
before/IN
completing/VBG
the/DT
transactions/NNS
./.
Currently/RB
,/,
the/DT
government/NN
charges/VBZ
nothing/NN
for/IN
such/JJ
filings/NNS
./.
Proponents/NNS
of/IN
the/DT
funding/NN
arrangement/NN
predict/VBP
that/IN
,/,
based/VBN
on/IN
recent/JJ
filing/NN
levels/NNS
of/IN
more/JJR
than/IN
2,000/CD
a/DT
year/NN
,/,
the/DT
fees/NNS
will/MD
yield/VB
at/IN
least/JJS
$/$
40/CD
million/CD
this/DT
fiscal/JJ
year/NN
,/,
or/CC
$/$
10/CD
million/CD
more/JJR
than/IN
the/DT
budget/NN
cuts/NNS
./.
``/``
When/WRB
you/PRP
do/VBP
that/DT
,/,
there/EX
is/VBZ
not/RB
a/DT
cut/NN
,/,
but/CC
there/EX
is/VBZ
in/IN
fact/NN
a/DT
program/NN
increase/NN
of/IN
$/$
5/CD
million/CD
''/''
each/DT
for/IN
the/DT
FTC/NNP
and/CC
the/DT
Justice/NNP
Department/NNP
,/,
Rep./NNP
Neal/NNP
Smith/NNP
D./NNP
,/,
Iowa/NNP
House/NNP
debate/NN
./.
But/CC
Rep./NNP
Don/NNP
Edwards/NNP
D./NNP
,/,
Calif/NNP
./.
a/DT
recession/NN
could/MD
stifle/VB
merger/NN
activity/NN
,/,
reducing/VBG
the/DT
amount/NN
of/IN
fees/NNS
collected/VBN
./.
The/DT
antitrust/JJ
staffs/NNS
of/IN
both/PDT
the/DT
FTC/NNP
and/CC
Justice/NNP
Department/NNP
were/VBD
cut/VBN
more/JJR
than/IN
40/CD
%/NN
in/IN
the/DT
Reagan/NNP
administration/NN
,/,
and/CC
enforcement/NN
of/IN
major/JJ
merger/NN
cases/NNS
fell/VBD
off/IN
drastically/RB
during/IN
that/DT
period/NN
./.
``/``
Today/NN
is/VBZ
not/RB
the/DT
time/NN
to/TO
signal/VB
that/IN
Congress/NNP
in/IN
any/DT
way/NN
sanctions/VBZ
the/DT
dismal/JJ
state/NN
into/IN
which/WDT
antitrust/JJ
enforcement/NN
has/VBZ
fallen/VBN
,/,
''/''
Mr./NNP
Edwards/NNP
argued/VBD
./.
Any/DT
money/NN
in/IN
excess/NN
of/IN
$/$
40/CD
million/CD
collected/VBN
from/IN
the/DT
fees/NNS
in/IN
fiscal/JJ
1990/CD
would/MD
go/VB
to/TO
the/DT
Treasury/NNP
at/IN
large/JJ
./.
Corporate/JJ
lawyers/NNS
said/VBD
the/DT
new/JJ
fees/NNS
would/MD
n't/RB
inhibit/VB
many/JJ
mergers/NNS
or/CC
other/JJ
transactions/NNS
./.
Though/IN
some/DT
lawyers/NNS
reported/VBD
that/IN
prospective/JJ
acquirers/NNS
were/VBD
scrambling/VBG
to/TO
make/VB
filings/NNS
before/IN
the/DT
fees/NNS
take/VBP
effect/NN
,/,
government/NN
officials/NNS
said/VBD
they/PRP
had/VBD
n't/RB
noticed/VBN
any/DT
surge/NN
in/IN
filings/NNS
./.
FALL/NN
BALLOT/NN
ISSUES/NNS
set/VBD
a/DT
record/NN
for/IN
off-year/JJ
elections/NNS
./.
Odd-year/JJ
elections/NNS
attract/VBP
relatively/RB
few/JJ
ballot/NN
issues/NNS
./.
But/CC
the/DT
1989/CD
fall/NN
total/NN
of/IN
80/CD
,/,
while/IN
well/RB
below/IN
1988/CD
activity/NN
,/,
shows/VBZ
``/``
a/DT
steady/JJ
ratcheting/VBG
up/IN
in/IN
citizen/NN
referenda/NN
and/CC
initiatives/VBZ
,/,
''/''
says/VBZ
Patrick/NNP
McGuigan/NNP
,/,
editor/NN
of/IN
Family/NNP
,/,
Law/NNP
and/CC
Democracy/NNP
Report/NNP
./.
He/PRP
says/VBZ
the/DT
10/CD
citizen-sparked/JJ
issues/NNS
on/IN
state/NN
ballots/NNS
this/DT
fall/NN
represent/VBP
the/DT

most/JJS
in/IN
any/DT
odd-year/JJ
this/DT
decade/NN
./.
Ballot/NN
questions/NNS
range/VBP
from/IN
a/DT
Maine/NNP
initiative/NN
on/IN
banning/VBG
Cruise/NN
missiles/NNS
to/TO
a/DT
referendum/NN
on/IN
increasing/VBG
the/DT
North/NNP
Dakota/NNP
income/NN
tax/NN
./.
Ballot/NN
watchers/NNS
say/VBP
attention/NN
already/RB
is/VBZ
focused/VBN
on/IN
the/DT
1990/CD
elections/NNS
./.
In/IN
California/NNP
,/,
two/CD
petition/NN
drives/NNS
for/IN
next/JJ
year/NN
's/POS
election/NN
are/VBP
``/``
essentially/RB
finished/VBN
,/,
''/''
says/VBZ
David/NNP
Schmidt/NNP
,/,
author/NN
of/IN
``/``
Citizen/NNP
Lawmakers/NNPS
./.
''/''
Mr./NNP
McGuigan/NNP
cites/VBZ
three/CD
completed/VBN
efforts/NNS
in/IN
Oklahoma/NNP
./.
Hot/JJ
ballot/NN
topics/NNS
are/VBP
expected/VBN
to/TO
be/VB
abortion/NN
,/,
the/DT
environment/NN
and/CC
insurance/NN
reform/NN
./.
Taking/VBG
a/DT
cue/NN
from/IN
California/NNP
,/,
more/JJR
politicians/NNS
will/MD
launch/VB
their/PRP$
campaigns/NNS
by/IN
backing/VBG
initiatives/NNS
,/,
says/VBZ
David/NNP
Magleby/NNP
of/IN
Brigham/NNP
Young/NNP
University/NNP
./.
PHOTOGRAPH/NN
COLLECTING/NN
gains/VBZ
new/JJ
stature/NN
as/IN
prices/NNS
rise/VBP
./.
Price/NN
records/NNS
are/VBP
being/VBG
set/NN
at/IN
auctions/NNS
this/DT
week/NN
./.
At/IN
Christie/NNP
's/POS
,/,
a/DT
folio/NN
of/IN
21/CD
prints/NNS
from/IN
Alfred/NNP
Stieglitz/NNP
's/POS
``/``
Equivalents/NNS
''/''
series/NN
sold/VBD
for/IN
$/$
396,000/CD
,/,
a/DT
single-lot/JJ
record/NN
./.
Other/JJ
works/NNS
also/RB
have/VBP
been/VBN
exceeding/VBG
price/NN
estimates/NNS
./.
In/IN
part/NN
,/,
prices/NNS
reflect/VBP
development/NN
of/IN
a/DT
market/NN
structure/NN
based/VBN
on/IN
such/JJ
variables/NNS
as/IN
the/DT
number/NN
of/IN
prints/NNS
./.
This/DT
information/NN
used/VBD
to/TO
be/VB
poorly/RB
documented/VBN
and/CC
largely/RB
anecdotal/JJ
,/,
says/VBZ
Beth/NNP
Gates-Warren/NNP
of/IN
Sotheby/NNP
's/POS
./.
``/``
There/EX
is/VBZ
finally/RB
some/DT
sort/NN
of/IN
sense/NN
in/IN
the/DT
market/NN
,/,
''/''
she/PRP
says/VBZ
./.
Corporations/NNS
and/CC
museums/NNS
are/VBP
among/IN
the/DT
serious/JJ
buyers/NNS
,/,
giving/VBG
greater/JJR
market/NN
stability/NN
,/,
says/VBZ
Robert/NNP
Persky/NNP
of/IN
the/DT
Photograph/NNP
Collector/NNP
./.
``/``
When/WRB
I/PRP
see/VBP
prints/NNS
going/VBG
into/IN
the/DT
hands/NNS
of/IN
institutions/NNS
,/,
I/PRP
know/VBP
they/PRP
are/VBP
n't/RB
going/VBG
to/TO
come/VB
back/RB
on/IN
the/DT
market/NN
./.
''/''
Most/JJS
in/IN
demand/NN
:/:
classic/JJ
photographs/NNS
by/IN
masters/NNS
such/JJ
as/IN
Stieglitz/NNP
and/CC
Man/NNP
Ray/NNP
./.
But/CC
much/RB
contemporary/JJ
work/NN
is/VBZ
also/RB
fetching/VBG
``/``
a/DT
great/JJ
deal/NN
of/IN
money/NN
,/,
''/''
says/VBZ
Miles/NNP
Barth/NNP
of/IN
the/DT
International/NNP
Center/NNP
of/IN
Photography/NNP
./.
DIALING/VBG
900/CD
brings/VBZ
callers/NNS
a/DT
growing/VBG
number/NN
of/IN
services/NNS
./.
Currently/RB
a/DT
$/$
300/CD
million-a-year/JJ
business/NN
,/,
900/CD
telephone/NN
service/NN
is/VBZ
expected/VBN
to/TO
hit/VB
$/$
500/CD
million/CD
next/JJ
year/NN
and/CC
near/IN
$/$
2/CD
billion/CD
by/IN
1992/CD
as/IN
uses/NNS
for/IN
the/DT
service/NN
continue/VBP
to/TO
expand/VB
,/,
says/VBZ
Joel/NNP
Gross/NNP
of/IN
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
Inc/NNP
./.
The/DT
service/NN
--/:
which/WDT
costs/VBZ
the/DT
caller/NN
from/IN
30/CD
cents/NNS
to/TO
$/$
25/CD
a/DT
minute/NN
--/:
currently/RB
is/VBZ
dominated/VBN
by/IN
celebrity/NN
chatter/NN
,/,
horoscopes/NNS
and/CC
romance/NN
lines/NNS
./.
But/CC
more/RBR
serious/JJ
applications/NNS
are/VBP
in/IN
the/DT
wings/NNS
,/,
and/CC
that/DT
is/VBZ
where/WRB
the/DT
future/JJ
growth/NN
is/VBZ
expected/VBN
./.
``/``
I/PRP
'm/VBP
starting/VBG
to/TO
see/VB
more/JJR
business/NN
transactions/NNS
,/,
''/''
says/VBZ
Andrea/NNP
West/NNP
of/IN
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
Co./NNP
,/,
noting/VBG
growing/VBG
interest/NN
in/IN
use/NN
of/IN
900/CD
service/NN
for/IN
stock/NN
sales/NNS
,/,
software/NN
tutorials/NNS
and/CC
even/RB
service/NN
contracts/NNS
./.
Colleges/NNS
,/,
she/PRP
says/VBZ
,/,
are/VBP
eyeing/VBG
registration/NN
through/IN
900/CD
service/NN
./.
Charities/NNS
test/VBP
the/DT
waters/NNS
,/,
but/CC
they/PRP
face/VBP
legal/JJ
barriers/NNS
to/TO
electronic/JJ
fund/NN
raising/NN
./.
``/``
The/DT
thing/NN
that/WDT
will/MD
really/RB
break/VB
this/DT
market/NN
right/RB
open/JJ
is/VBZ
merchandising/NN
,/,

''/''
Ms./NNP
West/NNP
says/VBZ
./.
Much/JJ
of/IN
the/DT
800/CD
service/NN
will/MD
``/``
migrate/VB
to/TO
900/CD
,/,
''/''
predicts/VBZ
Jack/NNP
Lawless/NNP
,/,
general/JJ
manager/NN
of/IN
US/NNP
Sprint/NNP
's/POS
900/CD
product/NN
./.
FAMILY/NN
PETS/NNS
are/VBP
improving/VBG
recovery/NN
rates/NNS
of/IN
patients/NNS
at/IN
Columbia/NNP
Hospital/NNP
,/,
Milwaukee/NNP
./.
Patients/NNS
who/WP
receive/VBP
canine/JJ
or/CC
feline/JJ
visitors/NNS
are/VBP
found/VBN
to/TO
have/VB
lower/JJR
blood/NN
pressure/NN
and/CC
improved/VBN
appetite/NN
and/CC
be/VB
more/RBR
receptive/JJ
to/TO
therapy/NN
,/,
says/VBZ
Mary/NNP
Ann/NNP
O'Loughlin/NNP
,/,
program/NN
coordinator/NN
./.
TIRED/JJ
OF/IN
TRIMMING/VBG
?/.
Hammacher/NNP
Schlemmer/NNP
&/CC
Co./NNP
offers/VBZ
a/DT
fiber-optic/JJ
Christmas/NNP
tree/NN
that/WDT
eliminates/VBZ
the/DT
need/NN
to/TO
string/VB
lights/NNS
./.
The/DT
$/$
6,500/CD
tree/NN
is/VBZ
designed/VBN
to/TO
send/VB
continuously/RB
changing/VBG
colored/VBN
light/NN
to/TO
dozens/NNS
of/IN
fiber-end/JJ
bunches/NNS
./.
MEDICINE/NNP
TRANSPLANT/NNP
:/:
Growth/NN
of/IN
Japanese/JJ
trade/NN
and/CC
travel/NN
prompts/VBZ
Beth/NNP
Israel/NNP
Medical/NNP
Center/NNP
,/,
New/NNP
York/NNP
,/,
to/TO
set/VB
up/IN
a/DT
bilingual/JJ
medical/JJ
practice/NN
./.
Funded/VBN
by/IN
a/DT
$/$
1/CD
million/CD
gift/NN
from/IN
Tokio/NNP
Marine/NNP
&/CC
Fire/NNP
Insurance/NNP
,/,
the/DT
service/NN
will/MD
follow/VB
Japanese/JJ
medical/JJ
protocols/NNS
,/,
including/VBG
emphasis/NN
on/IN
preventative/JJ
medicine/NN
./.
DIAPER/NN
SERVICES/NNS
make/VBP
a/DT
comeback/NN
amid/IN
growing/VBG
environmental/JJ
concerns/NNS
./.
Concerned/VBN
about/IN
shrinking/VBG
landfills/NNS
and/CC
the/DT
safety/NN
of/IN
chemicals/NNS
used/VBN
in/IN
super-absorbent/JJ
disposables/NNS
,/,
parents/NNS
are/VBP
returning/VBG
to/TO
the/DT
cloth/NN
diaper/NN
./.
Tiny/NNP
Tots/NNPS
Inc./NNP
,/,
Campbell/NNP
,/,
Calif./NNP
,/,
says/VBZ
business/NN
is/VBZ
up/IN
35/CD
%/NN
in/IN
the/DT
past/NN
year/NN
./.
``/``
We/PRP
're/VBP
gaining/VBG
1,200/CD
new/JJ
customers/NNS
each/DT
week/NN
,/,
''/''
says/VBZ
Jack/NNP
Mogavero/NNP
of/IN
General/NNP
Health/NNP
Care/NNP
Corp./NNP
,/,
Piscataway/NNP
,/,
N.J/NNP
./.
In/IN
Syracuse/NNP
,/,
N.Y./NNP
,/,
DyDee/NNP
Service/NNP
's/POS
new/JJ
marketing/NN
push/NN
stresses/VBZ
environmental/JJ
awareness/NN
./.
Among/IN
its/PRP$
new/JJ
customers/NNS
:/:
day-care/JJ
centers/NNS
that/WDT
previously/RB
spurned/VBD
the/DT
service/NN
./.
The/DT
National/NNP
Association/NNP
of/IN
Diaper/NNP
Services/NNPS
,/,
Philadelphia/NNP
,/,
says/VBZ
that/IN
since/IN
January/NNP
it/PRP
has/VBZ
gotten/VBN
more/JJR
than/IN
672/CD
inquiries/NNS
from/IN
people/NNS
interested/JJ
in/IN
starting/VBG
diaper/NN
services/NNS
./.
Elisa/NNP
Hollis/NNP
launched/VBD
a/DT
diaper/NN
service/NN
last/JJ
year/NN
because/IN
State/NNP
College/NNP
,/,
Pa./NNP
,/,
where/WRB
she/PRP
lives/VBZ
,/,
did/VBD
n't/RB
have/VB
one/CD
./.
Diaper/NN
shortages/NNS
this/DT
summer/NN
limited/VBD
growth/NN
at/IN
Stork/NNP
Diaper/NNP
Services/NNPS
,/,
Springfield/NNP
,/,
Mass./NNP
,/,
where/WRB
business/NN
is/VBZ
up/IN
25/CD
%/NN
in/IN
Also/RB
spurring/VBG
the/DT
move/NN
to/TO
cloth/NN
:/:
diaper/NN
covers/NNS
with/IN
Velcro/NN
fasteners/NNS
that/WDT
eliminate/VBP
the/DT
need/NN
for/IN
safety/NN
pins/NNS
./.
BRIEFS/NNPS
:/:
Only/RB
57.6/CD
%/NN
of/IN
New/NNP
Yorkers/NNPS
watch/VBP
the/DT
local/JJ
news/NN
,/,
the/DT
lowest/JJS
viewership/NN
in/IN
the/DT
country/NN
,/,
says/VBZ
a/DT
new/JJ
study/NN
by/IN
Impact/NNP
Resources/NNPS
Inc./NNP
,/,
Columbus/NNP
,/,
Ohio/NNP
.../:
./.
FreudToy/NNP
,/,
a/DT
pillow/NN
bearing/VBG
the/DT
likeness/NN
of/IN
Sigmund/NNP
Freud/NNP
,/,
is/VBZ
marketed/VBN
as/IN
a/DT
$/$
24.95/CD
tool/NN
for/IN
do-it-yourself/JJ
analysis/NN
./.
Program/NN
trading/NN
is/VBZ
``/``
a/DT
racket/NN
,/,
''/''
complains/VBZ
Edward/NNP
Egnuss/NNP
,/,
a/DT
White/NNP
Plains/NNP
,/,
N.Y./NNP
,/,
investor/NN
and/CC
electronics/NNS
sales/NNS
executive/NN
,/,
``/``
and/CC
it/PRP
's/VBZ
not/RB
to/TO
the/DT
benefit/NN
of/IN
the/DT
small/JJ
investor/NN
,/,
that/DT
's/VBZ
for/IN
sure/RB
./.
''/''
But/CC
although/IN
he/PRP
thinks/VBZ
that/IN
it/PRP
is/VBZ
hurting/VBG
him/PRP
,/,
he/PRP
doubts/VBZ
it/PRP
could/MD
be/VB
stopped/VBN
./.
Mr./NNP
Egnuss/NNP
's/POS
dislike/NN
of/IN
program/NN
trading/NN
is/VBZ
echoed/VBN
by/IN
many/JJ
small/JJ
investors/NNS
interviewed/VBN
by/IN
Wall/NNP
Street/NNP
Journal/NNP
reporters/NNS
across/IN
the/DT
country/NN
./.
But/CC
like/IN
Mr./NNP
Egnuss/NNP
,/,
few/JJ
expect/VBP
it/PRP
to/TO
be/VB
halted/VBN
entirely/RB
,/,
and/CC
a/DT
surprising/JJ
number/NN
doubt/NN
it/PRP
should/MD
be/VB
./.
``/``
I/PRP
think/VBP
program/NN
trading/NN
is/VBZ
basically/RB
unfair/JJ
to/TO
the/DT
individual/JJ
investor/NN
,/,
''/''
says/VBZ
Leo/NNP
Fields/NNP
,/,
a/DT
Dallas/NNP
investor/NN
./.
He/PRP
notes/VBZ
that/IN
program/NN
traders/NNS
have/VBP
a/DT
commission/NN
cost/NN
advantage/NN
because/IN
of/IN
the/DT
quantity/NN
of/IN
their/PRP$
trades/NNS
,/,
that/IN
they/PRP
have/VBP
a/DT
smaller/JJR
margin/NN
requirement/NN
than/IN
individual/JJ
investors/NNS
do/VBP
and/CC
that/IN
they/PRP
often/RB
can/MD
figure/VB
out/IN
earlier/JJR
where/WRB
the/DT
market/NN
is/VBZ
heading/VBG
./.
But/CC
he/PRP
blames/VBZ
program/NN
trading/NN
for/IN
only/RB
some/DT
of/IN
the/DT
market/NN
's/POS
volatility/NN
./.
He/PRP
also/RB
considers/VBZ
the/DT
market/NN
overvalued/VBD
and/CC
cites/VBZ
the/DT
troubles/NNS
in/IN
junk/NN
bonds/NNS
./.
He/PRP
adds/VBZ
:/:
``/``
The/DT
market/NN
may/MD
be/VB
giving/VBG
us/PRP
another/DT
message/NN
,/,
that/IN
a/DT
recession/NN
is/VBZ
looming/VBG
./.
''/''
Or/CC
,/,
as/IN
Dorothy/NNP
Arighi/NNP
,/,
an/DT
interior/JJ
decorator/NN
in/IN
Arnold/NNP
,/,
Calif./NNP
,/,
puts/VBZ
it/PRP
:/:
``/``
All/DT
kinds/NNS
of/IN
funny/JJ
things/NNS
spook/VBP
the/DT
market/NN
these/DT
days/NNS
./.
''/''
But/CC
she/PRP
believes/VBZ
that/IN
``/``
program/NN
trading/NN
creates/VBZ
deviant/JJ
swings/NNS
./.
It/PRP
's/VBZ
not/RB
a/DT
sound/JJ
thing/NN
;/:
there/EX
's/VBZ
no/DT
inherent/JJ
virtue/NN
in/IN
it/PRP
./.
''/''
She/PRP
adds/VBZ
that/IN
legislation/NN
curbing/VBG
it/PRP
would/MD
be/VB
``/``
a/DT
darned/RB
good/JJ
idea/NN
./.
''/''
At/IN
the/DT
Charles/NNP
Schwab/NNP
&/CC
Co./NNP
office/NN
in/IN
Atlanta/NNP
's/POS
Buckhead/NNP
district/NN
,/,
a/DT
group/NN
of/IN
investors/NNS
voices/NNS
skepticism/NN
that/IN
federal/JJ
officials/NNS
would/MD
curb/VB
program/NN
trading/NN
./.
Citing/VBG
the/DT
October/NNP
1987/CD
crash/NN
,/,
Glenn/NNP
Miller/NNP
says/VBZ
,/,
``/``
It/PRP
's/VBZ
like/IN
the/DT
last/JJ
crash/NN
--/:
they/PRP
threatened/VBD
,/,
but/CC
no/DT
one/NN
did/VBD
anything/NN
./.
''/''
A./NNP
Donald/NNP
Anderson/NNP
,/,
a/DT
59-year-old/JJ
Los/NNP
Angeles/NNP
investor/NN
who/WP
says/VBZ
the/DT
stock/NN
market/NN
's/POS
``/``
fluctuations/NNS
and/CC
gyrations/NNS
give/VBP
me/PRP
the/DT
heebie-jeebies/NNS
,/,
''/''
does/VBZ
n't/RB
see/VB
much/JJ
point/NN
in/IN
outlawing/VBG
program/NN
trading/NN
./.
Those/DT
who/WP
still/RB
want/VBP
to/TO
do/VB
it/PRP
``/``
will/MD
just/RB
find/VB
some/DT
way/NN
to/TO
get/VB
around/IN
''/''
any/DT
attempt/NN
to/TO
curb/VB
it/PRP
./.
Similarly/RB
,/,
Rick/NNP
Wamre/NNP
,/,
a/DT
31-year-old/JJ
asset/NN
manager/NN
for/IN
a/DT
Dallas/NNP
real-estate/NN
firm/NN
,/,
would/MD
like/VB
to/TO
see/VB
program/NN
trading/NN
disappear/VB
because/IN
``/``
I/PRP
ca/MD
n't/RB
see/VB
that/IN
it/PRP
does/VBZ
anything/NN
for/IN
the/DT
market/NN
or/CC
the/DT
country/NN
./.
''/''
Yet/RB
he/PRP
is/VBZ
n't/RB
in/IN
favor/NN
of/IN
new/JJ
legislation/NN
./.
``/``
I/PRP
think/VBP
we/PRP
've/VBP
got/VBN
enough/JJ
securities/NNS
laws/NNS
,/,
''/''
he/PRP
says/VBZ
./.
``/``
I/PRP
'd/MD
much/RB
rather/RB
see/VB
them/PRP
dealing/VBG
with/IN
interest/NN
rates/NNS
and/CC
the/DT
deficit/NN
./.
''/''
Peter/NNP
Anthony/NNP
,/,
who/WP
runs/VBZ
an/DT
employment/NN
agency/NN
in/IN
New/NNP
York/NNP
,/,
decries/VBZ
program/NN
trading/NN
as/IN
``/``
limiting/VBG
the/DT
game/NN
to/TO
a/DT
few/JJ
,/,
''/''
but/CC
he/PRP
also/RB
is/VBZ
n't/RB
sure/JJ
it/PRP
should/MD
be/VB
more/RBR
strictly/RB
regulated/VBN
./.
``/``
I/PRP
do/VBP
n't/RB
want/VB
to/TO
denounce/VB
it/PRP
because/IN
denouncing/VBG
it/PRP
would/MD
be/VB
like/IN
denouncing/VBG
capitalism/NN
,/,
''/''
he/PRP
explains/VBZ
./.
And/CC
surprising/JJ
numbers/NNS
of/IN
small/JJ
investors/NNS
seem/VBP
to/TO
be/VB
adapting/VBG
to/TO
greater/JJR
stock/NN
market/NN
volatility/NN
and/CC
say/VB
they/PRP
can/MD
live/VB
with/IN
program/NN
trading/NN
./.
Glenn/NNP
Britta/NNP
,/,
a/DT
25-year-old/JJ
New/NNP
York/NNP
financial/JJ
analyst/NN
who/WP
plays/VBZ
options/NNS
for/IN
his/PRP$
personal/JJ
account/NN
,/,
says/VBZ
he/PRP
is/VBZ
``/``
factoring/VBG
''/''
the/DT
market/NN
's/POS
volatility/NN
``/``
into/IN
investment/NN
decisions/NNS
./.
''/''
He/PRP
adds/VBZ
that/IN
program/NN
trading/NN
``/``
increases/VBZ
liquidity/NN
in/IN
the/DT
market/NN
./.
You/PRP
ca/MD
n't/RB
hold/VB
back/JJ
technology/NN
./.
''/''
And/CC
the/DT
practice/NN
should/MD
n't/RB
be/VB
stopped/VBN
,/,
he/PRP
says/VBZ
,/,
because/IN
``/``
even/RB
big/JJ
players/NNS
are/VBP
n't/RB
immune/JJ
to/TO
the/DT
rigors/NNS
of/IN
program/NN
trading/NN
./.
''/''
Also/RB
in/IN
New/NNP
York/NNP
,/,
Israel/NNP
Silverman/NNP
,/,
an/DT
insurance-company/NN
lawyer/NN
,/,
comments/VBZ
that/IN
program/NN
trading/NN
``/``
increases/VBZ
volatility/NN
,/,
but/CC
I/PRP
do/VBP
n't/RB
think/VB
it/PRP
should/MD
be/VB
banned/VBN
./.
There/EX
's/VBZ
no/DT
culprit/NN
here/RB
./.
The/DT
market/NN
is/VBZ
just/RB
becoming/VBG
more/RBR
efficient/JJ
./.
''/''
Arbitraging/VBG
on/IN
differences/NNS
between/IN
spot/NN
and/CC
futures/NNS
prices/NNS
is/VBZ
an/DT
important/JJ
part/NN
of/IN
many/JJ
financial/JJ
markets/NNS
,/,
he/PRP
says/VBZ
./.
He/PRP
adds/VBZ
that/IN
his/PRP$
shares/NNS
in/IN
a/DT
company/NN
savings/NN
plan/NN
are/VBP
invested/VBN
in/IN
a/DT
mutual/JJ
fund/NN
,/,
and/CC
volatility/NN
,/,
on/IN
a/DT
given/VBN
day/NN
,/,
may/MD
hurt/VB
the/DT
fund/NN
./.
But/CC
``/``
I/PRP
'm/VBP
a/DT
long-term/JJ
investor/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
If/IN
you/PRP
were/VBD
a/DT
short-term/JJ
investor/NN
,/,
you/PRP
might/MD
be/VB
more/RBR
leery/JJ
about/IN
program/NN
trading/NN
./.
''/''
Jim/NNP
Enzor/NNP
of/IN
Atlanta/NNP
defends/VBZ
program/NN
trading/NN
because/IN
he/PRP
believes/VBZ
that/IN
it/PRP
can/MD
bring/VB
the/DT
market/NN
back/RB
up/IN
after/IN
a/DT
plunge/NN
./.
``/``
If/IN
we/PRP
have/VBP
a/DT
real/JJ
bad/JJ
day/NN
,/,
the/DT
program/NN
would/MD
say/VB
,/,
`/``
Buy/VB
,/,
'/''
''/''
he/PRP
explains/VBZ
./.
``/``
If/IN
you/PRP
could/MD
get/VB
the/DT
rhythm/NN
of/IN
the/DT
program/NN
trading/NN
,/,
you/PRP
could/MD
take/VB
advantage/NN
of/IN
it/PRP
./.
''/''
What/WP
else/RB
can/MD
a/DT
small/JJ
investor/NN
do/VB
?/.
Scott/NNP
Taccetta/NNP
,/,
a/DT
Chicago/NNP
accountant/NN
,/,
is/VBZ
going/VBG
into/IN
money-market/JJ
funds/NNS
./.
Mr./NNP
Taccetta/NNP
says/VBZ
he/PRP
had/VBD
just/RB
recouped/VBN
the/DT
$/$
5,000/CD
he/PRP
lost/VBD
in/IN
the/DT
1987/CD
crash/NN
when/WRB
he/PRP
lost/VBD
more/JJR
money/NN
last/JJ
Oct./NNP
13/CD
./.
Now/RB
,/,
he/PRP
plans/VBZ
to/TO
sell/VB
all/PDT
his/PRP$
stocks/NNS
by/IN
the/DT
first/JJ
quarter/NN
of/IN
1990/CD
./.
In/IN
October/NNP
,/,
before/IN
the/DT
market/NN
dropped/VBD
,/,
Mrs./NNP
Arighi/NNP
of/IN
Arnold/NNP
,/,
Calif./NNP
,/,
moved/VBD
to/TO
sell/VB
the/DT
``/``
speculative/JJ
stocks/NNS
''/''
in/IN
her/PRP$
family/NN
trust/NN
``/``
so/IN
we/PRP
will/MD
be/VB
able/JJ
to/TO
withstand/VB
all/PDT
this/DT
flim-flammery/NN
''/''
caused/VBN
by/IN
program/NN
trading/NN
./.
She/PRP
believes/VBZ
that/IN
the/DT
only/JJ
answer/NN
for/IN
individuals/NNS
is/VBZ
to/TO
``/``
buy/VB
stocks/NNS
that/WDT
'll/MD
weather/VB
any/DT
storm/NN
./.
''/''
Lucille/NNP
Gorman/NNP
,/,
an/DT
84-year-old/JJ
Chicago/NNP
housewife/NN
,/,
has/VBZ
become/VBN
amazingly/RB
immune/JJ
to/TO
stock-market/NN
jolts/NNS
./.
Mrs./NNP
Gorman/NNP
took/VBD
advantage/NN
of/IN
low/JJ
prices/NNS
after/IN
the/DT
1987/CD
crash/NN
to/TO
buy/VB
stocks/NNS
and/CC
has/VBZ
hunted/VBN
for/IN
other/JJ
bargains/NNS
since/IN
the/DT
Oct./NNP
13/CD
plunge/NN
./.
``/``
My/PRP$
stocks/NNS
are/VBP
all/RB
blue/JJ
chips/NNS
,/,
''/''
she/PRP
says/VBZ
./.
``/``
If/IN
the/DT
market/NN
goes/VBZ
down/IN
,/,
I/PRP
figure/VBP
it/PRP
's/VBZ
paper/NN
profits/NNS
I/PRP
'm/VBP
losing/VBG
./.
On/IN
the/DT
other/JJ
hand/NN
,/,
if/IN
it/PRP
goes/VBZ
way/NN
sky/NN
high/RB
,/,
I/PRP
always/RB
sell/VBP
./.
You/PRP
do/VBP
n't/RB
want/VB
to/TO
get/VB
yourself/PRP
too/RB
upset/JJ
about/IN
these/DT
things/NNS
./.
''/''
Young/NNP
's/POS
Market/NNP
Co./NNP
,/,
a/DT
wholesaler/NN
of/IN
spirits/NNS
,/,
wines/NNS
and/CC
other/JJ
goods/NNS
,/,
said/VBD
it/PRP
will/MD
merge/VB
with/IN
a/DT
new/JJ
corporation/NN
formed/VBN
by/IN
the/DT
Underwood/NNP
family/NN
,/,
which/WDT
controls/VBZ
Young/NNP
's/POS
./.
Under/IN
terms/NNS
of/IN
the/DT
agreement/NN
,/,
shareholders/NNS
other/JJ
than/IN
the/DT
Underwoods/NNPS
will/MD
receive/VB
$/$
3,500/CD
a/DT
share/NN
at/IN
closing/NN
,/,
which/WDT
is/VBZ
expected/VBN
in/IN
December/NNP
./.
The/DT
Underwood/NNP
family/NN
said/VBD
that/IN
holders/NNS
of/IN
more/JJR
than/IN
a/DT
majority/NN
of/IN
the/DT
stock/NN
of/IN
the/DT
company/NN
have/VBP
approved/VBN
the/DT
transaction/NN
by/IN
written/VBN
consent/NN
./.
Researchers/NNS
at/IN
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
Co./NNP
's/POS
Bell/NNP
Laboratories/NNPS
reported/VBD
they/PRP
raised/VBD
the/DT
electrical/JJ
current-carrying/JJ
capacity/NN
of/IN
new/JJ
superconductor/NN
crystals/NNS
by/IN
a/DT
factor/NN
of/IN
100/CD
,/,
moving/VBG
the/DT
materials/NNS
closer/JJR
to/TO
commercial/JJ
use/NN
./.
The/DT
scientists/NNS
said/VBD
they/PRP
created/VBD
small/JJ
changes/NNS
in/IN
the/DT
crystal-lattice/JJ
structures/NNS
of/IN
the/DT
superconductors/NNS
to/TO
raise/VB
the/DT
amount/NN
of/IN
current/NN
that/IN
single/JJ
crystals/NNS
could/MD
carry/VB
to/TO
600,000/CD
amps/NNS
per/IN
square/JJ
centimeter/NN
in/IN
a/DT
moderately/RB
strong/JJ
magnetic/JJ
field/NN
./.
The/DT
scientists/NNS
said/VBD
they/PRP
made/VBD
the/DT
advance/NN
with/IN
yttrium-containing/JJ
superconductors/NNS
cooled/VBN
to/TO
liquid-nitrogen/NN
temperature/NN
,/,
or/CC
minus/CC
321/CD
degrees/NNS
Fahrenheit/NN
./.
Their/PRP$
report/NN
appears/VBZ
in/IN
today/NN
's/POS
issue/NN
of/IN
the/DT
journal/NN
Nature/NNP
./.
The/DT
finding/NN
marks/VBZ
a/DT
significant/JJ
step/NN
in/IN
research/NN
on/IN
``/``
bulk/NN
''/''
superconductors/NNS
,/,
which/WDT
are/VBP
aimed/VBN
at/IN
use/NN
in/IN
wires/NNS
for/IN
motors/NNS
,/,
magnets/NNS
,/,
generators/NNS
and/CC
other/JJ
applications/NNS
./.
Scientists/NNS
had/VBD
obtained/VBN
even/RB
higher/JJR
current-carrying/JJ
capacity/NN
in/IN
thin/JJ
films/NNS
of/IN
the/DT
new/JJ
superconductors/NNS
,/,
but/CC
have/VBP
had/VBN
problems/NNS
increasing/VBG
the/DT
amount/NN
of/IN
current/NN
that/IN
bulk/NN
crystals/NNS
could/MD
carry/VB
./.
Superconductors/NNS
conduct/VBP
electricity/NN
without/IN
resistance/NN
when/WRB
cooled/VBN
./.
A/DT
family/NN
of/IN
ceramic/JJ
superconductors/NNS
discovered/VBN
during/IN
the/DT
past/JJ
three/CD
years/NNS
promise/VBP
new/JJ
technologies/NNS
such/JJ
as/IN
cheaper/JJR
electrical/JJ
generation/NN
--/:
but/CC
only/RB
if/IN
their/PRP$
current-carrying/JJ
capacity/NN
can/MD
be/VB
raised/VBN
./.
The/DT
AT&T/NNP
advance/NN
shows/VBZ
how/WRB
one/CD
aspect/NN
of/IN
the/DT
current-carrying/JJ
problem/NN
can/MD
be/VB
overcome/VBN
./.
But/CC
``/``
it/PRP
wo/MD
n't/RB
lead/VB
to/TO
imminent/JJ
use/NN
''/''
of/IN
new/JJ
superconductors/NNS
,/,
cautioned/VBD
Robert/NNP
B./NNP
van/NNP
Dover/NNP
,/,
one/CD
of/IN
the/DT
AT&T/NNP
researchers/NNS
./.
He/PRP
added/VBD
that/IN
the/DT
current-carrying/JJ
capacity/NN
of/IN
multi-crystal/JJ
samples/NNS
of/IN
superconductors/NNS
remains/VBZ
too/RB
low/RB
for/IN
most/JJS
practical/JJ
uses/NNS
because/IN
of/IN
so-called/JJ
weak/JJ
links/NNS
between/IN
crystals/NNS
./.
Such/JJ
multi-crystal/JJ
materials/NNS
will/MD
probably/RB
be/VB
needed/VBN
for/IN
commercial/JJ
applications/NNS
./.
Mr./NNP
van/NNP
Dover/NNP
said/VBD
the/DT
AT&T/NNP
team/NN
created/VBD
the/DT
desired/VBN
crystal/NN
changes/NNS
by/IN
bombarding/VBG
superconductor/NN
samples/NNS
with/IN
neutrons/NNS
,/,
a/DT
process/NN
that/WDT
creates/VBZ
some/DT
radioactivity/NN
in/IN
the/DT
samples/NNS
and/CC
may/MD
not/RB
be/VB
feasible/JJ
for/IN
large-scale/JJ
commercial/JJ
use/NN
./.
Still/RB
,/,
scientists/NNS
breathed/VBD
a/DT
collective/JJ
sigh/NN
of/IN
relief/NN
about/IN
the/DT
finding/NN
,/,
because/IN
it/PRP
demonstrates/VBZ
how/WRB
to/TO
overcome/VB
the/DT
``/``
flux/NN
pinning/NN
''/''
problem/NN
that/IN
earlier/RBR
this/DT
year/NN
was/VBD
widely/RB
publicized/VBN
as/IN
undercutting/VBG
new/JJ
superconductors/NNS
'/POS
potential/NN
./.
The/DT
problem/NN
involves/VBZ
the/DT
motion/NN
of/IN
small/JJ
magnetic/JJ
fields/NNS
within/IN
superconductor/NN
crystals/NNS
,/,
limiting/VBG
their/PRP$
current-carrying/JJ
capacity/NN
./.
Mr./NNP
van/NNP
Dover/NNP
said/VBD
the/DT
crystal/NN
changes/VBZ
his/PRP$
team/NN
introduced/VBD
apparently/RB
pins/VBZ
the/DT
magnetic/JJ
fields/NNS
in/IN
place/NN
,/,
preventing/VBG
them/PRP
from/IN
lowering/VBG
current-carrying/JJ
capacity/NN
./.
Mr./NNP
van/NNP
Dover/NNP
added/VBD
that/IN
researchers/NNS
are/VBP
trying/VBG
to/TO
determine/VB
precisely/RB
what/WDT
crystal/NN
changes/NNS
solved/VBD
the/DT
problem/NN
./.
Determining/VBG
that/DT
may/MD
enable/VB
them/PRP
to/TO
develop/VB
better/JJR
ways/NNS
to/TO
introduce/VB
the/DT
needed/VBN
crystal-lattice/NN
patterns/NNS
./.
The/DT
AT&T/NNP
team/NN
also/RB
is/VBZ
trying/VBG
to/TO
combine/VB
their/PRP$
latest/JJS
superconductor/NN
process/NN
with/IN
``/``
melt-textured/JJ
growth/NN
,/,
''/''
a/DT
process/NN
discovered/VBN
earlier/JJR
at/IN
Bell/NNP
Laboratories/NNPS
./.
The/DT
combined/VBN
processes/NNS
may/MD
significantly/RB
raise/VB
the/DT
current-carrying/JJ
capacity/NN
of/IN
multi-crystal/JJ
samples/NNS
./.
William/NNP
C./NNP
Walbrecher/NNP
Jr./NNP
,/,
an/DT
executive/NN
at/IN
San/NNP
Francisco-based/JJ
1st/CD
Nationwide/NNP
Bank/NNP
,/,
was/VBD
named/VBN
president/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
Citadel/NNP
Holding/NNP
Corp./NNP
and/CC
its/PRP$
principal/JJ
operating/VBG
unit/NN
,/,
Fidelity/NNP
Federal/NNP
Bank/NNP
./.
The/DT
appointment/NN
takes/VBZ
effect/NN
Nov./NNP
13/CD
./.
He/PRP
succeeds/VBZ
James/NNP
A./NNP
Taylor/NNP
,/,
who/WP
stepped/VBD
down/IN
as/IN
chairman/NN
,/,
president/NN
and/CC
chief/NN
executive/NN
in/IN
March/NNP
for/IN
health/NN
reasons/NNS
./.
Edward/NNP
L./NNP
Kane/NNP
succeeded/VBD
Mr./NNP
Taylor/NNP
as/IN
chairman/NN
./.
Separately/RB
,/,
Citadel/NNP
posted/VBD
a/DT
third-quarter/NN
net/JJ
loss/NN
of/IN
$/$
2.3/CD
million/CD
,/,
or/CC
68/CD
cents/NNS
a/DT
share/NN
,/,
versus/CC
net/JJ
income/NN
of/IN
$/$
5.3/CD
million/CD
,/,
or/CC
$/$
1.61/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/JJR
./.
The/DT
latest/JJS
results/NNS
include/VBP
some/DT
unusual/JJ
write-downs/NNS
,/,
which/WDT
had/VBD
an/DT
after-tax/JJ
impact/NN
of/IN
$/$
4.9/CD
million/CD
./.
Those/DT
included/VBD
costs/NNS
associated/VBN
with/IN
the/DT
potential/JJ
Valley/NNP
Federal/NNP
Savings/NNP
and/CC
Loan/NNP
Association/NNP
acquisition/NN
,/,
which/WDT
was/VBD
terminated/VBN
on/IN
Sept./NNP
27/CD
,/,
1989/CD
./.
In/IN
addition/NN
,/,
operating/VBG
results/NNS
were/VBD
hit/VBN
by/IN
an/DT
increase/NN
in/IN
loan/NN
and/CC
real/JJ
estate/NN
loss/NN
reserves/NNS
./.
In/IN
American/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Citadel/NNP
shares/NNS
closed/VBD
yesterday/NN
at/IN
$/$
45.75/CD
,/,
down/IN
25/CD
cents/NNS
./.
The/DT
following/VBG
were/VBD
among/IN
yesterday/NN
's/POS
offerings/NNS
and/CC
pricings/NNS
in/IN
the/DT
U.S./NNP
and/CC
non-U.S./NNP
capital/NN
markets/NNS
,/,
with/IN
terms/NNS
and/CC
syndicate/NN
manager/NN
,/,
as/IN
compiled/VBN
by/IN
Dow/NNP
Jones/NNP
Capital/NNP
Markets/NNPS
Report/NNP
:/:
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
--/:
$/$
750/CD
million/CD
of/IN
8/CD
3\/8/CD
%/NN
debentures/NNS
due/JJ
Nov./NNP
1/CD
,/,
2019/CD
,/,
priced/VBN
at/IN
99/CD
to/TO
yield/VB
8.467/CD
%/NN
./.
The/DT
30-year/JJ
non-callable/JJ
issue/NN
was/VBD
priced/VBN
at/IN
a/DT
spread/NN
of/IN
57/CD
basis/NN
points/NNS
above/IN
the/DT
Treasury/NNP
's/POS
8/CD
1\/8/CD
%/NN
bellwether/NN
long/JJ
bond/NN
./.
Rated/VBN
triple-A/JJ
by/IN
both/DT
Moody/NNP
's/POS
Investors/NNPS
Service/NNP
Inc./NNP
and/CC
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NNP
,/,
the/DT
issue/NN
will/MD
be/VB
sold/VBN
through/IN
underwriters/NNS
led/VBN
by/IN
Salomon/NNP
Brothers/NNPS
Inc/NNP
./.
The/DT
size/NN
of/IN
the/DT
issue/NN
was/VBD
increased/VBN
from/IN
an/DT
originally/RB
planned/VBN
$/$
500/CD
million/CD
./.
Detroit/NNP
--/:
$/$
130/CD
million/CD
of/IN
general/JJ
obligation/NN
distributable/JJ
state/NN
aid/NN
bonds/NNS
due/JJ
1991-2000/CD
and/CC
2009/CD
,/,
tentatively/RB
priced/VBN
by/IN
a/DT
Chemical/NNP
Securities/NNPS
Inc./NNP
group/NN
to/TO
yield/VB
from/IN
6.20/CD
%/NN
in/IN
1991/CD
to/TO
7.272/CD
%/NN
in/IN
2009/CD
./.
There/EX
is/VBZ
$/$
81.8/CD
million/CD
of/IN
7.20/CD
%/NN
term/NN
bonds/NNS
due/JJ
2009/CD
priced/VBN
at/IN
99/CD
1\/4/CD
to/TO
yield/VB
7.272/CD
%/NN
./.
Serial/JJ
bonds/NNS
are/VBP
priced/VBN
to/TO
yield/VB
from/IN
6.20/CD
%/NN
in/IN
1991/CD
to/TO
7/CD
%/NN
in/IN
2000/CD
./.
The/DT
bonds/NNS
are/VBP
insured/VBN
and/CC
triple-A-rated/JJ
./.
Santa/NNP
Ana/NNP
Community/NNP
Redevelopment/NNP
Agency/NNP
,/,
Calif./NNP
--/:
$/$
107/CD
million/CD
of/IN
tax/NN
allocation/NN
bonds/NNS
,/,
1989/CD
Series/NNP
A-D/NNP
,/,
due/JJ
1991-1999/CD
,/,
2009/CD
and/CC
2019/CD
,/,
tentatively/RB
priced/VBN
by/IN
a/DT
Donaldson/NNP
Lufkin/NNP
&/CC
Jenrette/NNP
Securities/NNPS
Corp./NNP
group/NN
to/TO
yield/VB
from/IN
6.40/CD
%/NN
in/IN
1991/CD
to/TO
7.458/CD
%/NN
in/IN
2019/CD
./.
The/DT
7/CD
3\/8/CD
%/NN
term/NN
bonds/NNS
due/JJ
2009/CD
are/VBP
priced/VBN
at/IN
99/CD
1\/2/CD
to/TO
yield/VB
7.422/CD
%/NN
,/,
and/CC
7/CD
3\/8/CD
%/NN
term/NN
bonds/NNS
due/JJ
2019/CD
are/VBP
priced/VBN
at/IN
99/CD
to/TO
yield/VB
7.458/CD
%/NN
./.
Serial/JJ
bonds/NNS
are/VBP
priced/VBN
at/IN
par/NN
to/TO
yield/VB
from/IN
6.40/CD
%/NN
in/IN
1991/CD
to/TO
7.15/CD
%/NN
in/IN
1999/CD
./.
The/DT
bonds/NNS
are/VBP
rated/VBN
single-A/JJ
by/IN
S&P/NNP
,/,
according/VBG
to/TO
the/DT
lead/NN
underwriter/NN
./.
Maryland/NNP
Community/NNP
Development/NNP
Administration/NNP
,/,
Department/NNP
of/IN
Housing/NNP
and/CC
Community/NNP
Development/NNP
--/:
$/$
80.8/CD
million/CD
of/IN
single-family/NN
program/NN
bonds/NNS
,/,
1989/CD
fourth/JJ
and/CC
fifth/JJ
series/NN
,/,
tentatively/RB
priced/VBN
by/IN
a/DT
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNPS
group/NN
to/TO
yield/VB
from/IN
6.25/CD
%/NN
in/IN
1992/CD
for/IN
fourth/JJ
series/NN
bonds/NNS
to/TO
7.74/CD
%/NN
in/IN
2029/CD
for/IN
fifth/JJ
series/NN
bonds/NNS
./.
There/EX
is/VBZ
$/$
30.9/CD
million/CD
of/IN
fourth/JJ
series/NN
bonds/NNS
,/,
the/DT
interest/NN
on/IN
which/WDT
is/VBZ
not/RB
subject/JJ
to/TO
the/DT
federal/JJ
alternative/NN
minimum/NN
tax/NN
./.
They/PRP
mature/VBP
1992-1999/CD
,/,
2009/CD
and/CC
2017/CD
./.
Fourth/JJ
series/NN
serial/NN
bonds/NNS
are/VBP
priced/VBN
at/IN
par/NN
to/TO
yield/VB
from/IN
6.25/CD
%/NN
in/IN
1992/CD
to/TO
7/CD
%/NN
in/IN
1999/CD
./.
The/DT
7.40/CD
%/NN
term/NN
bonds/NNS
due/JJ
2009/CD
are/VBP
priced/VBN
to/TO
yield/VB
7.45/CD
%/NN
,/,
and/CC
7.40/CD
%/NN
term/NN
bonds/NNS
due/JJ
2017/CD
are/VBP
priced/VBN
to/TO
yield/VB
7.50/CD
%/NN
./.
There/EX
is/VBZ
$/$
49.9/CD
million/CD
of/IN
fifth/JJ
series/NN
bonds/NNS
,/,
which/WDT
are/VBP
subject/JJ
to/TO
the/DT
federal/JJ
alternative/NN
minimum/NN
tax/NN
./.
They/PRP
mature/VBP
in/IN
2005/CD
,/,
2009/CD
and/CC
2029/CD
./.
Bonds/NNS
due/JJ
in/IN
2005/CD
have/VBP
a/DT
7/CD
1\/2/CD
%/NN
coupon/NN
and/CC
are/VBP
priced/VBN
at/IN
par/NN
./.
The/DT
7/CD
5\/8/CD
%/NN
bonds/NNS
due/JJ
2009/CD
are/VBP
priced/VBN
to/TO
yield/VB
7.65/CD
%/NN
,/,
and/CC
7/CD
5\/8/CD
%/NN
bonds/NNS
due/JJ
2029/CD
are/VBP
priced/VBN
at/IN
98/CD
1\/2/CD
to/TO
yield/VB
7.74/CD
%/NN
./.
The/DT
underwriters/NNS
expect/VBP
a/DT
double-A/JJ
rating/NN
from/IN
Moody/NNP
's/POS
./.
Heiwado/NNP
Co/NNP
./.
Japan/NNP
$/$
100/CD
million/CD
of/IN
Eurobonds/NNS
due/JJ
Nov./NNP
16/CD
,/,
1993/CD
,/,
with/IN
equity-purchase/JJ
warrants/NNS
,/,
indicating/VBG
a/DT
3/CD
7\/8/CD
%/NN
coupon/NN
at/IN
par/NN
,/,
via/IN
Daiwa/NNP
Europe/NNP
Ltd/NNP
./.
Each/DT
$/$
5,000/CD
bond/NN
carries/VBZ
one/CD
warrant/NN
,/,
exercisable/JJ
from/IN
Nov./NNP
30/CD
,/,
1989/CD
,/,
through/IN
Nov./NNP
2/CD
,/,
1993/CD
,/,
to/TO
buy/VB
shares/NNS
at/IN
an/DT
expected/VBN
premium/NN
of/IN
2/CD
1\/2/CD
%/NN
to/TO
the/DT
closing/JJ
price/NN
when/WRB
terms/NNS
are/VBP
fixed/VBN
Tuesday/NNP
./.
Fees/NNS
2/CD
1\/4/CD
./.
Svenska/NNP
Intecknings/NNP
Garanti/NNP
Aktiebolaget/NNP
Sweden/NNP
20/CD
billion/CD
yen/NN
of/IN
6/CD
%/NN
Eurobonds/NNS
due/JJ
Nov./NNP
21/CD
,/,
1994/CD
,/,
priced/VBN
at/IN
101/CD
3\/4/CD
to/TO
yield/VB
6.03/CD
%/NN
less/RBR
full/JJ
fees/NNS
,/,
via/IN
Mitsui/NNP
Finance/NNP
International/NNP
./.
Guaranteed/VBN
by/IN
Svenska/NNP
Handelsbanken/NNP
./.
Fees/NNS
1/CD
7\/8/CD
./.
Takashima/NNP
&/CC
Co/NNP
./.
Japan/NNP
50/CD
million/CD
Swiss/JJ
francs/NNS
of/IN
privately/RB
placed/VBN
convertible/JJ
notes/NNS
due/JJ
March/NNP
31/CD
,/,
1994/CD
,/,
with/IN
a/DT
fixed/VBN
0.25/CD
%/NN
coupon/NN
at/IN
par/NN
via/IN
Yamaichi/NNP
Bank/NNP
Switzerland/NNP
Put/VB
option/NN
March/NNP
31/CD
,/,
1992/CD
,/,
at/IN
a/DT
fixed/VBN
107/CD
7\/8/CD
to/TO
yield/VB
3.43/CD
%/NN
./.
Each/DT
50,000/CD
Swiss/JJ
franc/NN
note/NN
is/VBZ
convertible/JJ
from/IN
Nov./NNP
30/CD
,/,
1989/CD
,/,
to/TO
March/NNP
16/CD
,/,
1994/CD
at/IN
a/DT
5/CD
%/NN
premium/NN
over/IN
the/DT
closing/JJ
share/NN
price/NN
Monday/NNP
,/,
when/WRB
terms/NNS
are/VBP
scheduled/VBN
to/TO
be/VB
fixed/VBN
./.
Fees/NNS
1/CD
3\/4/CD
./.
Mitsubishi/NNP
Pencil/NNP
Co/NNP
./.
Japan/NNP
60/CD
million/CD
Swiss/JJ
francs/NNS
of/IN
privately/RB
placed/VBN
convertible/JJ
notes/NNS
due/JJ
Dec./NNP
31/CD
,/,
1993/CD
,/,
with/IN
a/DT
fixed/VBN
0.25/CD
%/NN
coupon/NN
at/IN
par/NN
via/IN
Union/NNP
Bank/NNP
of/IN
Switzerland/NNP
./.
Put/VB
option/NN
on/IN
Dec./NNP
31/CD
,/,
1991/CD
,/,
at/IN
a/DT
fixed/VBN
106/CD
7\/8/CD
to/TO
yield/VB
3.42/CD
%/NN
./.
Each/DT
50,000/CD
Swiss/JJ
franc/NN
note/NN
is/VBZ
convertible/JJ
from/IN
Dec./NNP
5/CD
,/,
1989/CD
,/,
to/TO
Dec./NNP
31/CD
,/,
1993/CD
,/,
at/IN
a/DT
5/CD
%/NN
premium/NN
over/IN
the/DT
closing/JJ
share/NN
price/NN
Tuesday/NNP
,/,
when/WRB
terms/NNS
are/VBP
scheduled/VBN
to/TO
be/VB
fixed/VBN
./.
Fees/NNS
1/CD
5\/8/CD
./.
Koizumi/NNP
Sangyo/NNP
Corp/NNP
./.
Japan/NNP
20/CD
million/CD
Swiss/JJ
francs/NNS
of/IN
6/CD
1\/2/CD
%/NN
privately/RB
placed/VBN
notes/NNS
due/JJ
Nov./NNP
29/CD
,/,
1996/CD
,/,
priced/VBN
at/IN
99/CD
1\/2/CD
via/IN
Dai-Ichi/NNP
Kangyo/NNP
Bank/NNP
Schweiz/NNP
Guarantee/NN
by/IN
Dai-Ichi/NNP
Kangyo/NNP
Bank/NNP
Ltd/NNP
./.
Fees/NNS
1/CD
3\/4/CD
./.
Although/IN
his/PRP$
team/NN
lost/VBD
the/DT
World/NNP
Series/NNP
,/,
San/NNP
Francisco/NNP
Giants/NNPS
owner/NN
Bob/NNP
Lurie/NNP
hopes/VBZ
to/TO
have/VB
a/DT
new/JJ
home/NN
for/IN
them/PRP
./.
He/PRP
is/VBZ
an/DT
avid/JJ
fan/NN
of/IN
a/DT
proposition/NN
on/IN
next/JJ
week/NN
's/POS
ballot/NN
to/TO
help/VB
build/VB
a/DT
replacement/NN
for/IN
Candlestick/NNP
Park/NNP
./.
Small/JJ
wonder/NN
,/,
since/IN
he/PRP
's/VBZ
asking/VBG
San/NNP
Francisco/NNP
taxpayers/NNS
to/TO
sink/VB
up/IN
to/TO
$/$
100/CD
million/CD
into/IN
the/DT
new/JJ
stadium/NN
./.
As/IN
San/NNP
Francisco/NNP
digs/VBZ
out/IN
from/IN
The/DT
Pretty/NNP
Big/NNP
One/CD
,/,
opponents/NNS
say/VBP
the/DT
last/JJ
thing/NN
the/DT
city/NN
can/MD
afford/VB
is/VBZ
an/DT
expensive/JJ
new/JJ
stadium/NN
./.
A/DT
stadium/NN
craze/NN
is/VBZ
sweeping/VBG
the/DT
country/NN
./.
It/PRP
's/VBZ
fueled/VBN
by/IN
the/DT
increasing/VBG
profitability/NN
of/IN
major-league/JJ
teams/NNS
./.
Something/NN
like/IN
one-third/NN
of/IN
the/DT
nation/NN
's/POS
60/CD
largest/JJS
cities/NNS
are/VBP
thinking/VBG
about/IN
new/JJ
stadiums/NNS
,/,
ranging/VBG
from/IN
Cleveland/NNP
to/TO
San/NNP
Antonio/NNP
and/CC
St./NNP
Petersburg/NNP
./.
Most/JJS
boosters/NNS
claim/VBP
the/DT
new/JJ
sports/NNS
complexes/NNS
will/MD
be/VB
moneymakers/NNS
for/IN
their/PRP$
city/NN
./.
Pepperdine/NNP
University/NNP
economist/NN
Dean/NNP
Baim/NNP
scoffs/VBZ
at/IN
that/DT
./.
He/PRP
has/VBZ
looked/VBN
at/IN
14/CD
baseball/NN
and/CC
football/NN
stadiums/NNS
and/CC
found/VBN
that/IN
only/RB
one/CD
--/:
private/JJ
Dodger/NNP
Stadium/NNP
--/:
brought/VBD
more/JJR
money/NN
into/IN
a/DT
city/NN
than/IN
it/PRP
took/VBD
out/IN
./.
Stadiums/NNS
tend/VBP
to/TO
redistribute/VB
existing/VBG
wealth/NN
within/IN
a/DT
community/NN
,/,
not/RB
create/VB
more/JJR
of/IN
it/PRP
./.
Voters/NNS
generally/RB
agree/VBP
when/WRB
they/PRP
are/VBP
given/VBN
a/DT
chance/NN
to/TO
decide/VB
if/IN
they/PRP
want/VBP
to/TO
sink/VB
their/PRP$
own/JJ
tax/NN
dollars/NNS
into/IN
a/DT
new/JJ
mega-stadium/NN
./.
San/NNP
Francisco/NNP
voters/NNS
rejected/VBD
a/DT
new/JJ
ballpark/NN
two/CD
years/NNS
ago/IN
./.
Last/JJ
month/NN
,/,
Phoenix/NNP
voters/NNS
turned/VBD
thumbs/NNS
down/RP
on/IN
a/DT
$/$
100/CD
million/CD
stadium/NN
bond/NN
and/CC
tax/NN
proposition/NN
./.
Its/PRP$
backers/NNS
fielded/VBD
every/DT
important/JJ
interest/NN
on/IN
their/PRP$
team/NN
--/:
a/DT
popular/JJ
mayor/NN
,/,
the/DT
Chamber/NNP
of/IN
Commerce/NNP
,/,
the/DT
major/JJ
media/NNS
--/:
and/CC
spent/VBD
$/$
100,000/CD
on/IN
promotion/NN
./.
But/CC
voters/NNS
decided/VBD
that/IN
if/IN
the/DT
stadium/NN
was/VBD
such/PDT
a/DT
good/JJ
idea/NN
someone/NN
would/MD
build/VB
it/PRP
himself/PRP
,/,
and/CC
rejected/VBD
it/PRP
59/CD
%/NN
to/TO
41/CD
%/NN
./.
In/IN
San/NNP
Francisco/NNP
,/,
its/PRP$
backers/NNS
concede/VBP
the/DT
ballpark/NN
is/VBZ
at/IN
best/JJS
running/VBG
even/RB
in/IN
the/DT
polls/NNS
./.
George/NNP
Christopher/NNP
,/,
the/DT
former/JJ
San/NNP
Francisco/NNP
mayor/NN
who/WP
built/VBD
Candlestick/NNP
Park/NNP
for/IN
the/DT
Giants/NNPS
in/IN
the/DT
1960s/CD
,/,
wo/MD
n't/RB
endorse/VB
the/DT
new/JJ
ballpark/NN
./.
He/PRP
says/VBZ
he/PRP
had/VBD
Candlestick/NNP
built/VBN
because/IN
the/DT
Giants/NNPS
claimed/VBD
they/PRP
needed/VBD
10,000/CD
parking/NN
spaces/NNS
./.
Since/IN
the/DT
new/JJ
park/NN
will/MD
have/VB
only/RB
1,500/CD
spaces/NNS
,/,
Mr./NNP
Christopher/NNP
thinks/VBZ
backers/NNS
are/VBP
playing/VBG
some/DT
fiscal/JJ
``/``
games/NNS
''/''
of/IN
their/PRP$
own/JJ
with/IN
the/DT
voters/NNS
./.
Stadium/NN
boosters/NNS
claim/VBP
that/IN
without/IN
public/JJ
money/NN
they/PRP
would/MD
never/RB
be/VB
built/VBN
./.
Miami/NNP
Dolphins/NNPS
owner/NN
Joe/NNP
Robbie/NNP
disagrees/VBZ
,/,
and/CC
he/PRP
can/MD
prove/VB
it/PRP
./.
Several/JJ
years/NNS
ago/IN
he/PRP
gave/VBD
up/IN
trying/VBG
to/TO
persuade/VB
Miami/NNP
to/TO
improve/VB
its/PRP$
city-owned/JJ
Orange/NNP
Bowl/NNP
,/,
and/CC
instead/RB
built/VBD
his/PRP$
own/JJ
$/$
100/CD
million/CD
coliseum/NN
with/IN
private/JJ
funds/NNS
./.
He/PRP
did/VBD
n't/RB
see/VB
why/WRB
the/DT
taxpayers/NNS
should/MD
help/VB
build/VB
something/NN
he/PRP
would/MD
then/RB
use/VB
to/TO
turn/VB
a/DT
healthy/JJ
profit/NN
./.
``/``
This/DT
stadium/NN
shows/VBZ
that/IN
anything/NN
government/NN
can/MD
do/VB
,/,
we/PRP
can/MD
do/VB
better/RBR
,/,
''/''
Mr./NNP
Robbie/NNP
says/VBZ
./.
But/CC
to/TO
Moon/NNP
Landrieu/NNP
,/,
the/DT
former/JJ
New/NNP
Orleans/NNP
mayor/NN
who/WP
helped/VBD
build/VB
that/DT
city/NN
's/POS
cavernous/JJ
,/,
money-losing/JJ
Superdome/NNP
,/,
questions/NNS
of/IN
who/WP
benefits/VBZ
or/CC
the/DT
bottom/NN
line/NN
are/VBP
of/IN
little/JJ
relevance/NN
./.
``/``
The/DT
Superdome/NNP
is/VBZ
an/DT
exercise/NN
in/IN
optimism/NN
,/,
a/DT
statement/NN
of/IN
faith/NN
,/,
''/''
he/PRP
has/VBZ
said/VBN
./.
``/``
It/PRP
is/VBZ
the/DT
very/JJ
building/NN
of/IN
it/PRP
that/WDT
is/VBZ
important/JJ
,/,
not/RB
how/WRB
much/RB
of/IN
it/PRP
is/VBZ
used/VBN
or/CC
its/PRP$
economics/NN
./.
''/''
An/DT
Egyptian/JJ
Pharaoh/NNP
could/MD
n't/RB
have/VB
justified/VBN
his/PRP$
pyramids/NNS
any/RB
better/RBR
./.
But/CC
civilization/NN
has/VBZ
moved/VBN
forward/RB
since/IN
then/RB
./.
Today/NN
taxpayers/NNS
get/VBP
to/TO
vote/VB
,/,
most/JJS
of/IN
the/DT
time/NN
,/,
on/IN
whether/IN
they/PRP
want/VBP
to/TO
finance/VB
the/DT
building/VBG
schemes/NNS
of/IN
our/PRP$
modern/JJ
political/JJ
pharaohs/NNS
,/,
or/CC
let/VB
private/JJ
money/NN
erect/VB
these/DT
playgrounds/NNS
for/IN
public/JJ
passions/NNS
./.
Reed/NNP
International/NNP
PLC/NNP
said/VBD
that/IN
net/JJ
income/NN
for/IN
the/DT
six/CD
months/NNS
ended/VBD
Oct./NNP
1/CD
slipped/VBD
5/CD
%/NN
to/TO
#/#
89.7/CD
million/CD
$/$
141.9/CD
million/CD
16/CD
pence/NN
a/DT
share/NN
,/,
from/IN
#/#
94.8/CD
million/CD
$/$
149.9/CD
million/CD
17.3/CD
pence/NN
a/DT
share/NN
./.
The/DT
British/JJ
paper/NN
,/,
packaging/NN
and/CC
publishing/NN
concern/NN
,/,
said/VBD
profit/NN
from/IN
continuing/VBG
lines/NNS
fell/VBD
10/CD
%/NN
to/TO
#/#
118/CD
million/CD
from/IN
#/#
130.6/CD
million/CD
./.
While/IN
there/EX
were/VBD
no/DT
one-time/JJ
gains/NNS
or/CC
losses/NNS
in/IN
the/DT
latest/JJS
period/NN
,/,
there/EX
was/VBD
a/DT
one-time/JJ
gain/NN
of/IN
#/#
18/CD
million/CD
in/IN
the/DT
1988/CD
period/NN
./.
And/CC
while/IN
there/EX
was/VBD
no/DT
profit/NN
this/DT
year/NN
from/IN
discontinued/VBN
operations/NNS
,/,
last/JJ
year/NN
they/PRP
contributed/VBD
#/#
34/CD
million/CD
,/,
before/IN
tax/NN
./.
Pretax/NN
profit/NN
fell/VBD
3.7/CD
%/NN
to/TO
#/#
128/CD
million/CD
from/IN
#/#
133/CD
million/CD
and/CC
was/VBD
below/IN
analysts/NNS
'/POS
expectations/NNS
of/IN
#/#
130/CD
million/CD
to/TO
#/#
135/CD
million/CD
,/,
but/CC
shares/NNS
rose/VBD
6/CD
pence/NN
to/TO
388/CD
pence/NN
in/IN
early/JJ
trading/NN
yesterday/NN
in/IN
London/NNP
./.
Reed/NNP
is/VBZ
paying/VBG
an/DT
interim/JJ
dividend/NN
of/IN
4.6/CD
pence/NN
,/,
up/RB
15/CD

%/NN
from/IN
4/CD
pence/NN
a/DT
year/NN
earlier/JJR
./.
Sales/NNS
fell/VBD
20/CD
%/NN
to/TO
#/#
722/CD
million/CD
./.
Earnings/NNS
were/VBD
hurt/VBN
by/IN
disposal/NN
of/IN
operations/NNS
in/IN
its/PRP$
restructuring/NN
,/,
Reed/NNP
said/VBD
./.
Wall/NNP
Street/NNP
's/POS
big/JJ
securities/NNS
firms/NNS
face/VBP
the/DT
prospect/NN
of/IN
having/VBG
their/PRP$
credit/NN
ratings/NNS
lowered/VBN
./.
The/DT
reason/NN
:/:
Risks/NNS
from/IN
the/DT
firms/NNS
'/POS
new/JJ
``/``
merchant/NN
banking/NN
''/''
activities/NNS
are/VBP
rising/VBG
as/IN
revenue/NN
from/IN
the/DT
industry/NN
's/POS
traditional/JJ
business/NN
erodes/VBZ
./.
The/DT
downgrading/NN
of/IN
debt/NN
issued/VBN
by/IN
CS/NNP
First/NNP
Boston/NNP
Inc./NNP
,/,
parent/NN
of/IN
First/NNP
Boston/NNP
Corp./NNP
,/,
by/IN
Moody/NNP
's/POS
Investors/NNPS
Service/NNP
Inc./NNP
,/,
coupled/VBN
with/IN
a/DT
Moody/NNP
's/POS
announcement/NN
that/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Holdings/NNP
Inc./NNP
is/VBZ
under/IN
review/NN
for/IN
a/DT
possible/JJ
downgrade/NN
,/,
sent/VBD
shivers/NNS
through/IN
the/DT
brokerage/NN
community/NN
this/DT
week/NN
./.
With/IN
the/DT
shudders/NNS
came/VBD
the/DT
realization/NN
that/IN
some/DT
of/IN
Wall/NNP
Street/NNP
's/POS
biggest/JJS
players/NNS
are/VBP
struggling/VBG
to/TO
maintain/VB
the/DT
stellar/JJ
credit/NN
standing/NN
required/VBN
to/TO
finance/VB
their/PRP$
activities/NNS
profitably/RB
./.
Securities/NNS
firms/NNS
are/VBP
among/IN
the/DT
biggest/JJS
issuers/NNS
of/IN
commercial/JJ
paper/NN
,/,
or/CC
short-term/JJ
corporate/JJ
IOUs/NNS
,/,
which/WDT
they/PRP
sell/VBP
to/TO
finance/VB
their/PRP$
daily/JJ
operations/NNS
./.
The/DT
biggest/JJS
firms/NNS
still/RB
retain/VB
the/DT
highest/JJS
ratings/NNS
on/IN
their/PRP$
commercial/JJ
paper/NN
./.
But/CC
Moody/NNP
's/VBZ
warned/VBN
that/IN
Shearson/NNP
's/POS
commercial/JJ
paper/NN
rating/NN
could/MD
be/VB
lowered/VBN
soon/RB
,/,
a/DT
move/NN
that/WDT
would/MD
reduce/VB
Shearson/NNP
's/POS
profit/NN
margins/NNS
on/IN
its/PRP$
borrowings/NNS
and/CC
signal/VB
trouble/NN
ahead/RB
for/IN
other/JJ
firms/NNS
./.
Shearson/NNP
is/VBZ
62%-owned/JJ
by/IN
American/NNP
Express/NNP
Co/NNP
./.
``/``
Just/RB
as/IN
the/DT
1980s/CD
bull/NN
market/NN
transformed/VBD
the/DT
U.S./NNP
securities/NNS
business/NN
,/,
so/RB
too/RB
will/MD
the/DT
more/RBR
difficult/JJ
environment/NN
of/IN
the/DT
1990s/CD
,/,
''/''
says/VBZ
Christopher/NNP
T./NNP
Mahoney/NNP
,/,
a/DT
Moody/NNP
's/POS
vice/NN
president/NN
./.
``/``
A/DT
sweeping/JJ
restructuring/NN
of/IN
the/DT
industry/NN
is/VBZ
possible/JJ
./.
''/''
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NNP
says/VBZ
First/NNP
Boston/NNP
,/,
Shearson/NNP
and/CC
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
,/,
in/IN
particular/JJ
,/,
are/VBP
likely/JJ
to/TO
have/VB
difficulty/NN
shoring/VBG
up/IN
their/PRP$
credit/NN
standing/NN
in/IN
months/NNS
ahead/RB
./.
What/WP
worries/VBZ
credit-rating/NN
concerns/NNS
the/DT
most/JJS
is/VBZ
that/IN
Wall/NNP
Street/NNP
firms/NNS
are/VBP
taking/VBG
long-term/JJ
risks/NNS
with/IN
their/PRP$
own/JJ
capital/NN
via/IN
leveraged/JJ
buy-out/NN
and/CC
junk/NN
bond/NN
financings/NNS
./.
That/DT
's/VBZ
a/DT
departure/NN
from/IN
their/PRP$
traditional/JJ
practice/NN
of/IN
transferring/VBG
almost/RB
all/DT
financing/VBG
risks/NNS
to/TO
investors/NNS
./.
Whereas/IN
conventional/JJ
securities/NNS
financings/NNS
are/VBP
structured/VBN
to/TO
be/VB
sold/VBN
quickly/RB
,/,
Wall/NNP
Street/NNP
's/POS
new/JJ
penchant/NN
for/IN
leveraged/JJ
buy-outs/NNS
and/CC
junk/NN
bonds/NNS
is/VBZ
resulting/VBG
in/IN
long-term/JJ
lending/VBG
commitments/NNS
that/WDT
stretch/VBP
out/IN
for/IN
months/NNS
or/CC
years/NNS
./.
``/``
The/DT
recent/JJ
disarray/NN
in/IN
the/DT
junk/NN
bond/NN
market/NN
suggests/VBZ
that/IN
brokers/NNS
may/MD
become/VB
longer-term/JJ
creditors/NNS
than/IN
they/PRP
anticipated/VBD
and/CC
may/MD
face/VB
long/JJ
delays/NNS
''/''
in/IN
getting/VBG
their/PRP$
money/NN
back/RB
,/,
says/VBZ
Jeffrey/NNP
Bowman/NNP
,/,
a/DT
vice/NN
president/NN
at/IN
S&P/NNP
,/,
which/WDT
raised/VBD
a/DT
warning/VBG
flag/NN
for/IN
the/DT
industry/NN
in/IN
April/NNP
when/WRB
it/PRP
downgraded/VBD
CS/NNP
First/NNP
Boston/NNP
./.
``/``
Wall/NNP
Street/NNP
is/VBZ
facing/VBG
a/DT
Catch-22/NN
situation/NN
,/,
''/''
says/VBZ
Mr./NNP
Mahoney/NNP
of/IN
Moody/NNP
's/POS
./.
Merchant/NN
banking/NN
,/,
where/WRB
firms/NNS
commit/VBP
their/PRP$
own/JJ
money/NN
,/,
``/``
is/VBZ
getting/VBG
riskier/JJR
,/,
and/CC
there/EX
's/VBZ
less/JJR
of/IN
it/PRP
to/TO
go/VB
around/IN
./.
''/''
In/IN
addition/NN
,/,
he/PRP
says/VBZ
,/,
the/DT
buy-out/NN
business/NN
is/VBZ
under/IN
pressure/NN
``/``
because/IN
of/IN
the/DT
junk/NN
bond/NN
collapse/NN
,/,
''/''
meaning/VBG
that/IN
returns/NNS
are/VBP
likely/JJ
to/TO
decline/VB
as/IN
the/DT
volume/NN
of/IN
junk-bond/NN
financings/NNS
shrinks/VBZ
./.
In/IN
a/DT
leveraged/JJ
buy-out/NN
,/,
a/DT
small/JJ
group/NN
of/IN
investors/NNS
acquires/VBZ
a/DT
company/NN
in/IN
a/DT
transaction/NN
financed/VBN
largely/RB
by/IN
borrowing/NN
,/,
with/IN
the/DT
expectation/NN
that/IN
the/DT
debt/NN
will/MD
be/VB
paid/VBN
with/IN
funds/NNS
generated/VBN
by/IN
the/DT
acquired/VBN
company/NN
's/POS
operations/NNS
or/CC
sales/NNS
of/IN
its/PRP$
assets/NNS
./.
In/IN
a/DT
recent/JJ
report/NN
,/,
Moody/NNP
's/POS
said/VBD
it/PRP
``/``
expects/VBZ
intense/JJ
competition/NN
to/TO
occur/VB
through/IN
the/DT
rest/NN
of/IN
the/DT
century/NN
in/IN
the/DT
securities/NNS
industry/NN
,/,
which/WDT
,/,
combined/VBN
with/IN
overcapacity/NN
,/,
will/MD
create/VB
poor/JJ
prospects/NNS
for/IN
profitability/NN
./.
''/''
It/PRP
said/VBD
that/IN
the/DT
``/``
temptation/NN
for/IN
managements/NNS
to/TO
ease/VB
this/DT
profit/NN
pressure/NN
by/IN
taking/VBG
greater/JJR
risks/NNS
is/VBZ
an/DT
additional/JJ
rating/NN
factor/NN
./.
''/''
Both/DT
Moody/NNP
's/POS
and/CC
S&P/NNP
cited/VBD
First/NNP
Boston/NNP
's/POS
reliance/NN
in/IN
recent/JJ
years/NNS
on/IN
merchant/NN
banking/NN
,/,
which/WDT
has/VBZ
been/VBN
responsible/JJ
for/IN
a/DT
significant/JJ
portion/NN
of/IN
the/DT
closely/RB
held/VBN
firm/NN
's/POS
profit/NN
./.
The/DT
recent/JJ
cash/NN
squeeze/NN
at/IN
Campeau/NNP
Corp./NNP
,/,
First/NNP
Boston/NNP
's/POS
most/JJS
lucrative/JJ
client/NN
of/IN
the/DT
decade/NN
,/,
is/VBZ
proving/VBG
costly/JJ
to/TO
First/NNP
Boston/NNP
because/IN
it/PRP
arranged/VBD
more/JJR
than/IN
$/$
3/CD
billion/CD
of/IN
high-yield/JJ
,/,
high-risk/JJ
junk/NN
financings/NNS
for/IN
Campeau/NNP
units/NNS
./.
In/IN
addition/NN
,/,
a/DT
big/JJ
loan/NN
that/IN
First/NNP
Boston/NNP
made/VBD
to/TO
Ohio/NNP
Mattress/NNP
Co/NNP
./.
was/VBD
n't/RB
repaid/VBN
on/IN
time/NN
when/WRB
its/PRP$
$/$
450/CD
million/CD
junk/NN
financing/NN
for/IN
a/DT
buy-out/NN
of/IN
the/DT
bedding/NN
company/NN
was/VBD
withdrawn/VBN
./.
``/``
These/DT
two/CD
exposures/NNS
alone/RB
represent/VBP
a/DT
very/RB
substantial/JJ
portion/NN
of/IN
CS/NNP
First/NNP
Boston/NNP
's/POS
equity/NN
,/,
''/''
Moody/NNP
's/POS
said/VBD
./.
``/``
Total/JJ
merchant/NN
banking/NN
exposures/NNS
are/VBP
in/IN
excess/NN
of/IN
the/DT
firm/NN
's/POS
equity/NN
./.
''/''
CS/NNP
First/NNP
Boston/NNP
,/,
however/RB
,/,
benefits/VBZ
from/IN
the/DT
backing/NN
of/IN
its/PRP$
largest/JJS
shareholder/NN
,/,
Credit/NNP
Suisse/NNP
,/,
Switzerland/NNP
's/POS
third/JJ
largest/JJS
bank/NN
./.
Shearson/NNP
also/RB
has/VBZ
been/VBN
an/DT
aggressive/JJ
participant/NN
in/IN
the/DT
leveraged/JJ
buy-out/NN
business/NN
./.
But/CC
its/PRP$
earnings/NNS
became/VBD
a/DT
major/JJ
disappointment/NN
as/IN
its/PRP$
traditional/JJ
retail/NN
,/,
or/CC
individual/JJ
investor/NN
,/,
business/NN
showed/VBD
no/DT
signs/NNS
of/IN
rebounding/VBG
from/IN
the/DT
slump/NN
that/WDT
followed/VBD
the/DT
October/NNP
1987/CD
stock/NN
market/NN
crash/NN
./.
In/IN
addition/NN
,/,
Shearson/NNP
's/POS
listed/VBN
$/$
2/CD
billion/CD
of/IN
capital/NN
is/VBZ
overstated/VBN
,/,
according/VBG
to/TO
the/DT
rating/NN
concerns/NNS
,/,
because/IN
it/PRP
includes/VBZ
$/$
1.7/CD
billion/CD
of/IN
goodwill/NN
./.
Shearson/NNP
``/``
really/RB
only/RB
has/VBZ
$/$
300/CD
million/CD
of/IN
capital/NN
,/,
''/''
says/VBZ
Mr./NNP
Bowman/NNP
of/IN
S&P/NNP
./.
A/DT
Shearson/NNP
spokesman/NN
said/VBD
the/DT
firm/NN
is/VBZ
n't/RB
worried/VBN
./.
``/``
A/DT
year/NN
ago/IN
,/,
Moody/NNP
's/POS
also/RB
had/VBD
Shearson/NNP
under/IN
review/NN
for/IN
possible/JJ
downgrade/NN
,/,
''/''
he/PRP
said/VBD
./.
``/``
After/IN
two/CD
months/NNS
of/IN
talks/NNS
,/,
our/PRP$
rating/NN
was/VBD
maintained/VBN
./.
''/''
Drexel/NNP
,/,
meanwhile/RB
,/,
already/RB
competes/VBZ
at/IN
a/DT
disadvantage/NN
to/TO
its/PRP$
big/JJ
Wall/NNP
Street/NNP
rivals/NNS
because/IN
it/PRP
has/VBZ
a/DT
slightly/RB
lower/JJR
commercial/JJ
paper/NN
rating/NN
./.
The/DT
collapse/NN
of/IN
junk/NN
bond/NN
prices/NNS
and/CC
the/DT
cancellation/NN
of/IN
many/JJ
junk/NN
bond/NN
financings/NNS
apparently/RB
have/VBP
taken/VBN
their/PRP$
toll/NN
on/IN
closely/RB
held/VBN
Drexel/NNP
,/,
the/DT
leading/VBG
underwriter/NN
in/IN
that/DT
market/NN
./.
The/DT
firm/NN
also/RB
has/VBZ
been/VBN
hit/VBN
with/IN
big/JJ
financial/JJ
settlements/NNS
with/IN
the/DT
government/NN
stemming/VBG
from/IN
its/PRP$
guilty/JJ
plea/NN
to/TO
six/CD
felonies/NNS
related/VBN
to/TO
a/DT
big/JJ
insider-trading/JJ
scandal/NN
./.
Drexel/NNP
this/DT
year/NN
eliminated/VBD
its/PRP$
retail/NN
or/CC
individual/JJ
customer/NN
business/NN
,/,
cutting/VBG
the/DT
firm/NN
's/POS
workforce/NN
almost/RB
in/IN
half/NN
to/TO
just/RB
over/IN
5,000/CD
./.
Recently/RB
,/,
Drexel/NNP
circulated/VBD
a/DT
private/JJ
financial/JJ
statement/NN
among/IN
several/JJ
securities/NNS
firms/NNS
showing/VBG
that/IN
its/PRP$
earnings/NNS
performance/NN
has/VBZ
diminished/VBN
this/DT
year/NN
from/IN
previous/JJ
years/NNS
./.
The/DT
firm/NN
's/POS
capital/NN
,/,
moreover/RB
,/,
has/VBZ
n't/RB
grown/VBN
at/IN
the/DT
same/JJ
rate/NN
as/IN
in/IN
the/DT
past/NN
,/,
officials/NNS
at/IN
these/DT
firms/NNS
say/VBP
./.
Drexel/NNP
remains/VBZ
confident/JJ
of/IN
its/PRP$
future/JJ
creditworthiness/NN
./.
``/``
We/PRP
're/VBP
well/RB
positioned/VBN
with/IN
$/$
1.7/CD
billion/CD
of/IN
capital/NN
,/,
''/''
a/DT
Drexel/NNP
spokesman/NN
said/VBD
./.
``/``
And/CC
as/IN
a/DT
leading/JJ
investment/NN
and/CC
merchant/NN
banking/NN
firm/NN
,/,
the/DT
fact/NN
that/IN
we/PRP
are/VBP
no/RB
longer/JJR
subject/JJ
to/TO
the/DT
uncertainties/NNS
and/CC
vicissitudes/NNS
of/IN
the/DT
retail/JJ
business/NN
is/VBZ
a/DT
major/JJ
plus/NN
in/IN
our/PRP$
view/NN
./.
Moreover/RB
,/,
we/PRP
've/VBP
probably/RB
been/VBN
the/DT
most/RBS
aggressive/JJ
firm/NN
on/IN
the/DT
Street/NNP
in/IN
reducing/VBG
costs/NNS
,/,
which/WDT
are/VBP
down/RB
around/IN
40/CD
%/NN
over/IN
the/DT
last/JJ
six/CD
months/NNS
./.
''/''
Lewis/NNP
C./NNP
Veraldi/NNP
,/,
the/DT
father/NN
of/IN
the/DT
team/NN
that/WDT
created/VBD
the/DT
highly/RB
successful/JJ
Ford/NNP
Taurus/NNP
and/CC
Mercury/NNP
Sable/NNP
cars/NNS
,/,
retired/VBD
early/RB
after/IN
experiencing/VBG
recent/JJ
heart/NN
problems/NNS
./.
Most/RBS
recently/RB
,/,
Mr./NNP
Veraldi/NNP
,/,
59/CD
years/NNS
old/JJ
,/,
has/VBZ
been/VBN
vice/NN
president/NN
of/IN
product/NN
and/CC
manufacturing/VBG
engineering/NN
at/IN
Ford/NNP
Motor/NNP
Co/NNP
./.
But/CC
he/PRP
is/VBZ
best/JJS
known/VBN
in/IN
the/DT
auto/NN
industry/NN
as/IN
the/DT
creator/NN
of/IN
a/DT
team/NN
car-development/NN
approach/NN
that/WDT
produced/VBD
the/DT
two/CD
midsized/VBN
cars/NNS
that/WDT
were/VBD
instrumental/JJ
in/IN
helping/VBG
the/DT
No./NN
2/CD
auto/NN
maker/NN
record/VB
profits/NNS
in/IN
recent/JJ
years/NNS
and/CC
in/IN
enabling/VBG
the/DT
company/NN
's/POS
Ford/NNP
division/NN
to/TO
eclipse/VB
General/NNP
Motors/NNPS
Corp./NNP
's/POS
Chevrolet/NNP
division/NN
as/IN
the/DT
top-selling/JJ
nameplate/NN
in/IN
the/DT
U.S/NNP
./.
Under/IN
the/DT
so-called/JJ
Team/NNP
Taurus/NNP
approach/NN
,/,
Mr./NNP
Veraldi/NNP
and/CC
other/JJ
Ford/NNP
product/NN
planners/NNS
sought/VBD
the/DT
involvement/NN
of/IN
parts/NNS
suppliers/NNS
,/,
assembly-line/NN
workers/NNS
,/,
auto/NN
designers/NNS
and/CC
financial/JJ
staff/NN
members/NNS
from/IN
the/DT
initial/JJ
stages/NNS
of/IN
the/DT
development/NN
cycle/NN
./.
The/DT
concept/NN
's/POS
goal/NN
was/VBD
to/TO
eliminate/VB
bureaucracy/NN
and/CC
make/VB
Ford/NNP
's/POS
product/NN
development/NN
more/RBR
responsive/JJ
to/TO
consumer/NN
demands/NNS
./.
It/PRP
was/VBD
later/JJ
applied/VBN
to/TO
other/JJ
new-car/NN
programs/NNS
,/,
including/VBG
those/DT
that/WDT
produced/VBD
the/DT
Ford/NNP
Thunderbird/NNP
and/CC
Mercury/NNP
Cougar/NNP
./.
Ford/NNP
Chairman/NNP
Donald/NNP
E./NNP
Petersen/NNP
said/VBD
yesterday/NN
that/IN
Mr./NNP
Veraldi/NNP
has/VBZ
``/``
helped/VBN
to/TO
change/VB
the/DT
world/NN
's/POS
perception/NN
of/IN
American-made/JJ
cars/NNS
./.
''/''
Mr./NNP
Veraldi/NNP
worked/VBD
at/IN
Ford/NNP
for/IN
40/CD
years/NNS
,/,
holding/VBG
a/DT
variety/NN
of/IN
car/NN
and/CC
parts-engineering/JJ
positions/NNS
./.
The/DT
limits/NNS
to/TO
legal/JJ
absurdity/NN
stretched/VBD
another/DT
notch/NN
this/DT
week/NN
when/WRB
the/DT
Supreme/NNP
Court/NNP
refused/VBD
to/TO
hear/VB
an/DT
appeal/NN
from/IN
a/DT
case/NN
that/WDT
says/VBZ
corporate/JJ
defendants/NNS
must/MD
pay/VB
damages/NNS
even/RB
after/IN
proving/VBG
that/IN
they/PRP
could/MD
not/RB
possibly/RB
have/VB
caused/VBN
the/DT
harm/NN
./.
We/PRP
can/MD
understand/VB
and/CC
share/VB
the/DT
compassion/NN
that/WDT
makes/VBZ
judges/NNS
sometimes/RB
wish/VB
to/TO
offer/VB
a/DT
kind/NN
of/IN
Solomonic/JJ
aid/NN
to/TO
those/DT
who/WP
've/VBP
been/VBN
hurt/VBN
./.
But/CC
this/DT
case/NN
is/VBZ
a/DT
stark/JJ
lesson/NN
in/IN
how/WRB
the/DT
failures/NNS
of/IN
the/DT
traditional/JJ
policy-making/JJ
process/NN
have/VBP
left/VBN
the/DT
courts/NNS
as/IN
the/DT
only/JJ
forum/NN
this/DT
country/NN
has/VBZ
to/TO
debate/VB
risk/NN
,/,
technology/NN
and/CC
innovation/NN
./.
Too/RB
often/RB
now/RB
,/,
a/DT
single/JJ
court/NN
decision/NN
becomes/VBZ
the/DT
precedent/NN
for/IN
other/JJ
,/,
less/RBR
compelling/JJ
cases/NNS
./.
From/IN
the/DT
1940s/CD
until/IN
1971/CD
,/,
some/DT
two/CD
million/CD
women/NNS
took/VBD
the/DT
synthetic/JJ
hormone/NN
diethylstilbestrol/NN
DES/NNP
miscarriages/NNS
and/CC
morning/NN
sickness/NN
./.
The/DT
drug/NN
was/VBD
approved/VBN
by/IN
the/DT
Food/NNP
and/CC
Drug/NNP
Administration/NNP
and/CC
marketed/VBN
by/IN
some/DT
300/CD
pharmaceutical/JJ
companies/NNS
,/,
often/RB
under/IN
generic/JJ
labels/NNS
./.
In/IN
the/DT
1970s/CD
,/,
scientists/NNS
reported/VBD
cancer/NN
cases/NNS
among/IN
the/DT
daughters/NNS
of/IN
DES/NNP
users/NNS
./.
The/DT
cases/NNS
quickly/RB
went/VBD
to/TO
court/NN
,/,
but/CC
the/DT
mothers/NNS
of/IN
several/JJ
thousand/CD
DES/NNP
plaintiffs/NNS
could/MD
n't/RB
recall/VB
whose/WP$
brand/NN
they/PRP
used/VBD
./.
Beginning/VBG
in/IN
1980/CD
,/,
courts/NNS
in/IN
several/JJ
states/NNS
including/VBG
California/NNP
and/CC
New/NNP
York/NNP
decided/VBD
to/TO
suspend/VB
the/DT
common-law/NN
rule/NN
that/IN
plaintiffs/NNS
must/MD
prove/VB
that/IN
the/DT
defendants/NNS
are/VBP
the/DT
ones/NNS
who/WP
are/VBP
liable/JJ
./.
Courts/NNS
made/VBD
the/DT
assumption/NN
that/IN
all/DT
DES/NNP
pills/NNS
were/VBD
essentially/RB
the/DT
same/JJ
,/,
and/CC
created/VBD
a/DT
market-share/JJ
test/NN
so/IN
that/IN
damages/NNS
would/MD
be/VB
assessed/VBN
against/IN
drug/NN
makers/NNS
in/IN
the/DT
proportion/NN
of/IN
their/PRP$
share/NN
of/IN
the/DT
original/JJ
sales/NNS
./.
This/DT
has/VBZ
some/DT
logic/NN
./.
Drug/NN
makers/NNS
should/MD
n't/RB
be/VB
able/JJ
to/TO
duck/VB
liability/NN
because/IN
people/NNS
could/MD
n't/RB
identify/VB
precisely/RB
which/WDT
identical/JJ
drug/NN
was/VBD
used/VBN
./.
But/CC
courts/NNS
quickly/RB
tumbled/VBD
down/IN
a/DT
slippery/JJ
slope/NN
./.
Just/RB
as/IN
all/DT
plaintiffs/NNS
are/VBP
not/RB
alike/RB
,/,
it/PRP
turns/VBZ
out/IN
that/IN
DES/NNP
defendants/NNS
marketed/VBD
the/DT
drugs/NNS
differently/RB
and/CC
may/MD
have/VB
offered/VBN
different/JJ
warranties/NNS
./.
The/DT
ultimate/JJ
result/NN
came/VBD
in/IN
Hymowitz/NNP
v./CC
Lilly/NNP
,/,
where/WRB
the/DT
highest/JJS
New/NNP
York/NNP
court/NN
expanded/VBD
the/DT
market-share/JJ
approach/NN
for/IN
the/DT
first/JJ
time/NN
to/TO
say/VB
that/IN
drug/NN
makers/NNS
that/WDT
could/MD
prove/VB
Mindy/NNP
Hymowitz/NNP
's/POS
mother/NN
did/VBD
n't/RB
use/VB
their/PRP$
pill/NN
must/MD
still/RB
pay/VB
their/PRP$
share/NN
of/IN
any/DT
damages/NNS
./.
But/CC
as/IN
Duke/NNP
University/NNP
law/NN
professor/NN
William/NNP
Van/NNP
Alstyne/NNP
notes/VBZ
,/,
by/IN
this/DT
reasoning/NN
a/DT
defendant/NN
could/MD
be/VB
held/VBN
liable/JJ
in/IN
New/NNP
York/NNP
for/IN
a/DT
bad/JJ
apple/NN
even/RB
if/IN
he/PRP
sold/VBD
all/PDT
his/PRP$
apples/NNS
in/IN
California/NNP
./.
Despite/IN
the/DT
Supreme/NNP
Court/NNP
's/POS
refusal/NN
to/TO
hear/VB
the/DT
case/NN
,/,
there/EX
are/VBP
serious/JJ
constitutional/JJ
issues/NNS
of/IN
due/JJ
process/NN
and/CC
uncompensated/JJ
takings/NNS
from/IN
the/DT
defendants/NNS
./.
The/DT
big/JJ
problem/NN
,/,
however/RB
,/,
is/VBZ
that/IN
there/EX
's/VBZ
no/DT
guarantee/NN
that/IN
this/DT
reasoning/NN
will/MD
be/VB
limited/VBN
to/TO
DES/NNP
or/CC
to/TO
drugs/NNS
./.
The/DT
problem/NN
here/RB
goes/VBZ
well/RB
beyond/IN
twisting/VBG
legal/JJ
doctrine/NN
./.
The/DT
California/NNP
Supreme/NNP
Court/NNP
last/JJ
year/NN
reversed/VBD
direction/NN
to/TO
make/VB
it/PRP
much/RB
harder/JJR
to/TO
win/VB
DES/NNP
cases/NNS
because/IN
the/DT
justices/NNS
saw/VBD
how/WRB
all/PDT
the/DT
pharmaceutical/JJ
litigation/NN
has/VBZ
chilled/VBN
the/DT
introduction/NN
of/IN
new/JJ
drugs/NNS
./.
The/DT
court/NN
rejected/VBD
strict/JJ
liability/NN
for/IN
prescription/NN
drugs/NNS
,/,
citing/VBG
the/DT
huge/JJ
,/,
hidden/VBN
social/JJ
costs/NNS
./.
``/``
Public/JJ
policy/NN
favors/VBZ
the/DT
development/NN
and/CC
marketing/NN
of/IN
beneficial/JJ
new/JJ
drugs/NNS
,/,
even/RB
though/IN
some/DT
risks/NNS
,/,
perhaps/RB
serious/JJ
ones/NNS
,/,
might/MD
accompany/VB
their/PRP$
introduction/NN
because/IN
drugs/NNS
can/MD
save/VB
lives/NNS
and/CC
reduce/VB
pain/NN
and/CC
suffering/NN
,/,
''/''
the/DT
unanimous/JJ
court/NN
said/VBD
./.
The/DT
California/NNP
justices/NNS
noted/VBD
that/IN
the/DT
fear/NN
of/IN
litigation/NN
already/RB
forced/VBD
the/DT
only/JJ
remaining/VBG
anti-morning-sickness/JJ
drug/NN
,/,
Bendectin/NNP
,/,
off/IN
the/DT
U.S./NNP
market/NN
./.
This/DT
raises/VBZ
the/DT
key/JJ
issue/NN
:/:
What/WP
to/TO
do/VB
about/IN
people/NNS
who/WP
suffer/VBP
serious/JJ
injuries/NNS
from/IN
beneficial/JJ
drugs/NNS
?/.
We/PRP
now/RB
know/VBP
that/IN
holding/VBG
drug/NN
makers/NNS
liable/JJ
where/WRB
there/EX
's/VBZ
no/DT
evidence/NN
that/IN
they/PRP
or/CC
anyone/NN
else/RB
knew/VBD
of/IN
any/DT
risks/NNS
only/RB
means/VBZ
the/DT
drugs/NNS
wo/MD
n't/RB
be/VB
available/JJ
to/TO
anyone/NN
./.
As/IN
liability/NN
expert/NN
Peter/NNP
Huber/NNP
tells/VBZ
us/PRP
,/,
after/IN
the/DT
Hymowitz/NNP
case/NN
,/,
if/IN
any/DT
drug/NN
maker/NN
introduces/VBZ
an/DT
anti-miscarriage/JJ
drug/NN
``/``
it/PRP
's/VBZ
time/NN
to/TO
sell/VB
that/DT
company/NN
's/POS
stock/NN
short/RB
./.
''/''
We/PRP
also/RB
know/VBP
that/IN
the/DT
tort/NN
system/NN
is/VBZ
a/DT
lousy/JJ
way/NN
to/TO
compensate/VB
victims/NNS
anyway/RB
;/:
some/DT
win/VBP
the/DT
legal/JJ
lottery/NN
,/,
others/NNS
get/VBP
much/RB
less/JJR
and/CC
contingency-fee/JJ
lawyers/NNS
take/VBP
a/DT
big/JJ
cut/NN
either/DT
way/NN
./.
DES/NNP
daughters/NNS
and/CC
other/JJ
victims/NNS
of/IN
drugs/NNS
would/MD
be/VB
better/JJR
off/IN
if/IN
their/PRP$
cases/NNS
were/VBD
taken/VBN
out/IN
of/IN
the/DT
courts/NNS
./.
Congress/NNP
could/MD
create/VB
a/DT
compensation/NN
program/NN
to/TO
help/VB
such/JJ
victims/NNS
while/IN
protecting/VBG
the/DT
national/JJ
interest/NN
in/IN
encouraging/VBG
new/JJ
drugs/NNS
./.
But/CC
a/DT
1986/CD
law/NN
that/WDT
supposedly/RB
replaced/VBD
lawsuits/NNS
over/IN
children/NNS
's/POS
vaccines/NNS
with/IN
a/DT
compensation/NN
fund/NN
has/VBZ
predictably/RB
led/VBN
to/TO
even/VB
more/JJR
litigation/NN
./.
Everyone/NN
by/IN
now/RB
understands/VBZ
that/IN
Congress/NNP
is/VBZ
utterly/RB
incapable/JJ
of/IN
writing/VBG
legislation/NN
to/TO
help/VB
deserving/JJ
people/NNS
without/IN
its/PRP$
becoming/VBG
some/DT
billion-dollar/JJ
morass/NN
./.
We/PRP
have/VBP
no/DT
doubt/NN
this/DT
is/VBZ
one/CD
reason/NN
judges/NNS
in/IN
New/NNP
York/NNP
and/CC
justices/NNS
on/IN
the/DT
Supreme/NNP
Court/NNP
are/VBP
willing/JJ
to/TO
trash/VB
the/DT
law/NN
in/IN
the/DT
DES/NNP
cases/NNS
./.
They/PRP
must/MD
figure/VB
that/IN
justice/NN
has/VBZ
to/TO
get/VB
done/VBN
by/IN
somebody/NN
,/,
but/CC
know/VB
it/PRP
wo/MD
n't/RB
be/VB
done/VBN
by/IN
Congress/NNP
./.
Odyssey/NNP
Partners/NNPS
Limited/NNP
Partnership/NNP
,/,
an/DT
investment/NN
firm/NN
,/,
completed/VBD
the/DT
purchase/NN
of/IN
May/NNP
Department/NNP
Stores/NNPS
Co./NNP
's/POS
Caldor/NNP
discount/NN
chain/NN
for/IN
$/$
500/CD
million/CD
plus/CC
the/DT
assumption/NN
of/IN
$/$
52/CD
million/CD
in/IN
debt/NN
./.
Caldor/NNP
,/,
based/VBN
in/IN
Norwalk/NNP
,/,
Conn./NNP
,/,
operates/VBZ
118/CD
stores/NNS
in/IN
the/DT
Northeast/NN
;/:
it/PRP
reported/VBD
revenue/NN
of/IN
$/$
1.6/CD
billion/CD
last/JJ
year/NN
./.
May/NNP
Stores/NNPS
,/,
St./NNP
Louis/NNP
,/,
runs/VBZ
such/JJ
well-known/JJ
department/NN
stores/NNS
as/IN
Lord/NNP
&/CC
Taylor/NNP
./.
N.V/NN
./.
DSM/NNP
said/VBD
net/JJ
income/NN
in/IN
the/DT
third/JJ
quarter/NN
jumped/VBD
63/CD
%/NN
as/IN
the/DT
company/NN
had/VBD
substantially/RB
lower/JJR
extraordinary/JJ
charges/NNS
to/TO
account/VB
for/IN
a/DT
restructuring/NN
program/NN
./.
The/DT
Dutch/JJ
chemical/NN
group/NN
said/VBD
net/JJ
income/NN
gained/VBD
to/TO
235/CD
million/CD
guilders/NNS
$/$
113.2/CD
million/CD
6.70/CD
guilders/NNS
a/DT
share/NN
,/,
from/IN
144/CD
million/CD
guilders/NNS
,/,
or/CC
4.10/CD
guilders/NNS
a/DT
share/NN
,/,
a/DT
year/NN
ago/IN
./.
The/DT
32/CD
%/NN
state-owned/JJ
DSM/NNP
had/VBD
eight/CD
million/CD
guilders/NNS
of/IN
extraordinary/JJ
charges/NNS
in/IN
the/DT
latest/JJS
quarter/NN
,/,
mainly/RB
to/TO
reflect/VB
one-time/JJ
losses/NNS
in/IN
connection/NN
with/IN
the/DT
disposal/NN
of/IN
some/DT
operations/NNS
./.
The/DT
charges/NNS
were/VBD
offset/VBN
in/IN
part/NN
by/IN
a/DT
gain/NN
from/IN
the/DT
sale/NN
of/IN
the/DT
company/NN
's/POS
construction/NN
division/NN
./.
Last/JJ
year/NN
,/,
DSM/NNP
had/VBD
71/CD
million/CD
guilders/NNS
of/IN
extraordinary/JJ
charges/NNS
for/IN
the/DT
restructuring/NN
program/NN
and/CC
other/JJ
transactions/NNS
./.
The/DT
earnings/NNS
growth/NN
also/RB
was/VBD
fueled/VBN
by/IN
the/DT
company/NN
's/POS
ability/NN
to/TO
cut/VB
net/JJ
financing/NN
spending/NN
by/IN
half/NN
to/TO
around/IN
15/CD
million/CD
guilders/NNS
./.
Also/RB
,/,
substantially/RB
lower/JJR
Dutch/JJ
corporate/JJ
tax/NN
rates/NNS
helped/VBD
the/DT
company/NN
keep/VB
its/PRP$
tax/NN
outlay/NN
flat/JJ
relative/JJ
to/TO
earnings/NNS
growth/NN
,/,
the/DT
company/NN
added/VBD
./.
Sales/NNS
,/,
however/RB
,/,
were/VBD
little/RB
changed/VBN
at/IN
2.46/CD
billion/CD
guilders/NNS
,/,
compared/VBN
with/IN
2.42/CD
billion/CD
guilders/NNS
./.
Allergan/NNP
Inc./NNP
said/VBD
it/PRP
received/VBD
Food/NNP
and/CC
Drug/NNP
Administration/NNP
approval/NN
to/TO
sell/VB
the/DT
PhacoFlex/NNP
intraocular/JJ
lens/NN
,/,
the/DT
first/JJ
foldable/JJ
silicone/NN
lens/NN
available/JJ
for/IN
cataract/NN
surgery/NN
./.
The/DT
len/NN
's/POS
foldability/NN
enables/VBZ
it/PRP
to/TO
be/VB
inserted/VBN
in/IN
smaller/JJR
incisions/NNS
than/IN
are/VBP
now/RB
possible/JJ
for/IN
cataract/NN
surgery/NN
,/,
the/DT
eye/NN
care/NN
and/CC
skin/NN
care/NN
concern/NN
said/VBD
./.
Cataracts/NNS
refer/VBP
to/TO
a/DT
clouding/NN
of/IN
the/DT
eye/NN
's/POS
natural/JJ
lens/NN
./.
Allergan/NNP
was/VBD
spun/VBN
off/IN
in/IN
July/NNP
from/IN
SmithKline/NNP
Beckman/NNP
Corp./NNP
as/IN
part/NN
of/IN
the/DT
merger/NN
of/IN
SmithKline/NNP
and/CC
Beecham/NNP
Group/NNP
A/DT
man/NN
from/IN
the/DT
Bush/NNP
administration/NN
came/VBD
before/IN
the/DT
House/NNP
Agriculture/NNP
Committee/NNP
yesterday/NN
to/TO
talk/VB
about/IN
the/DT
U.S./NNP
's/POS
intention/NN
to/TO
send/VB
some/DT
$/$
100/CD
million/CD
in/IN
food/NN
aid/NN
to/TO
Poland/NNP
,/,
with/IN
more/JJR
to/TO
come/VB
from/IN
the/DT
EC/NNP
./.
The/DT
committee/NN
's/POS
members/NNS
are/VBP
worried/VBN
what/WP
all/PDT
this/DT
free/JJ
food/NN
might/MD
do/VB
to/TO
the/DT
economic/JJ
prospects/NNS
of/IN
Poland/NNP
's/POS
own/JJ
farmers/NNS
./.
Rep./NNP
Gary/NNP
Ackerman/NNP
noted/VBD
that/IN
past/JJ
food/NN
aid/NN
had/VBD
harmed/VBN
farmers/NNS
in/IN
El/NNP
Salvador/NNP
and/CC
Egypt/NNP
./.
However/RB
well/RB
intentioned/JJ
,/,
food/NN
transfers/NNS
have/VBP
the/DT
habit/NN
of/IN
growing/VBG
larger/JJR
and/CC
wrecking/VBG
the/DT
market/NN
incentives/NNS
for/IN
the/DT
recipient/JJ
country/NN
's/POS
own/JJ
farmers/NNS
./.
The/DT
First/NNP
World/NNP
has/VBZ
for/IN
some/DT
time/NN
had/VBD
the/DT
bad/JJ
habit/NN
of/IN
smothering/VBG
other/JJ
people/NNS
's/POS
economies/NNS
with/IN
this/DT
kind/NN
of/IN
unfocused/JJ
kindness/NN
./.
It/PRP
should/MD
be/VB
constantly/RB
stressed/VBN
that/IN
Poland/NNP
's/POS
farmers/NNS
mostly/RB
need/VBP
a/DT
real/JJ
market/NN
for/IN
their/PRP$
products/NNS
./.
Elco/NNP
Industries/NNPS
Inc./NNP
said/VBD
it/PRP
expects/VBZ
net/JJ
income/NN
in/IN
the/DT
year/NN
ending/VBG
June/NNP
30/CD
,/,
1990/CD
,/,
to/TO
fall/VB
below/IN
a/DT
recent/JJ
analyst/NN
's/POS
estimate/NN
of/IN
$/$
1.65/CD
a/DT
share/NN
./.
The/DT
Rockford/NNP
,/,
Ill./NNP
,/,
maker/NN
of/IN
fasteners/NNS
also/RB
said/VBD
it/PRP
expects/VBZ
to/TO
post/VB
sales/NNS
in/IN
the/DT
current/JJ
fiscal/JJ
year/NN
that/WDT
are/VBP
``/``
slightly/RB
above/JJ
''/''
fiscal/JJ
1989/CD
sales/NNS
of/IN
$/$
155/CD
million/CD
./.
The/DT
company/NN
said/VBD
its/PRP$
industrial/JJ
unit/NN
continues/VBZ
to/TO
face/VB
margin/NN
pressures/NNS
and/CC
lower/JJR
demand/NN
./.
In/IN
fiscal/JJ
1989/CD
,/,
Elco/NNP
earned/VBD
$/$
7.8/CD
million/CD
,/,
or/CC
$/$
1.65/CD
a/DT
share/NN
./.
The/DT
company/NN
's/POS
stock/NN
fell/VBD
$/$
1.125/CD
to/TO
$/$
13.625/CD
in/IN
over-the-counter/JJ
trading/NN
yesterday/NN
./.
Oshkosh/NNP
Truck/NNP
Corp./NNP
,/,
Oshkosh/NNP
,/,
Wis./NNP
,/,
estimated/VBN
earnings/NNS
for/IN
its/PRP$
fourth/JJ
quarter/NN
ended/VBD
Sept./NNP
30/CD
fell/VBD
50/CD
%/NN
to/TO
75/CD
%/NN
below/IN
the/DT
year-earlier/JJ
$/$
4.5/CD
million/CD
,/,
or/CC
51/CD
cents/NNS
a/DT
share/NN
./.
The/DT
truck/NN
maker/NN
said/VBD
the/DT
significant/JJ
drop/NN
in/IN
net/JJ
income/NN
will/MD
result/VB
in/IN
lower/JJR
earnings/NNS
for/IN
the/DT
fiscal/JJ
year/NN
./.
In/IN
fiscal/JJ
1988/CD
,/,
the/DT
company/NN
earned/VBD
$/$
17.3/CD
million/CD
,/,
or/CC
$/$
1.92/CD
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
352.9/CD
million/CD
./.
Oshkosh/NNP
Truck/NNP
attributed/VBD
the/DT
downturn/NN
in/IN
its/PRP$
earnings/NNS
to/TO
higher/JJR
start-up/JJ
costs/NNS
of/IN
its/PRP$
new/JJ
chassis/NN
division/NN
,/,
a/DT
softer/JJR
motor-home/NN
market/NN
and/CC
higher/JJR
administrative/JJ
costs/NNS
of/IN
compliance/NN
with/IN
government/NN
contractor/NN
regulations/NNS
./.
The/DT
company/NN
said/VBD
it/PRP
is/VBZ
in/IN
the/DT
process/NN
of/IN
phasing/VBG
out/IN
John/NNP
Deere/NNP
,/,
its/PRP$
current/JJ
source/NN
of/IN
production/NN
for/IN
midsized/JJ
motor/NN
home/NN
chassis/NN
./.
In/IN
anticipation/NN
of/IN
the/DT
start-up/NN
of/IN
its/PRP$
new/JJ
factory/NN
,/,
the/DT
company/NN
said/VBD
a/DT
larger-than-normal/JJ
chassis/NN
supply/NN
has/VBZ
been/VBN
built/VBN
to/TO
carry/VB
it/PRP
through/IN
the/DT
transition/NN
period/NN
./.
Tokyo/NNP
stocks/NNS
edged/VBD
up/IN
Wednesday/NNP
in/IN
relatively/RB
active/JJ
but/CC
unfocused/JJ
trading/NN
./.
London/NNP
shares/NNS
finished/VBD
moderately/RB
higher/JJR
./.
At/IN
Tokyo/NNP
,/,
the/DT
Nikkei/NNP
index/NN
of/IN
225/CD
selected/VBN
issues/NNS
,/,
which/WDT
gained/VBD
132/CD
points/NNS
Tuesday/NNP
,/,
added/VBD
14.99/CD
points/NNS
to/TO
35564.43/CD
./.
In/IN
early/RB
trading/NN
in/IN
Tokyo/NNP
Thursday/NNP
,/,
the/DT
Nikkei/NNP
index/NN
fell/VBD
63.79/CD
points/NNS
to/TO
35500.64/CD
./.
Wednesday/NNP
's/POS
volume/NN
on/IN
the/DT
First/NNP
Section/NNP
was/VBD
estimated/VBN
at/IN
900/CD
million/CD
shares/NNS
,/,
in/IN
line/NN
with/IN
Tuesday/NNP
's/POS
909/CD
million/CD
./.
Declining/VBG
issues/NNS
slightly/RB
outnumbered/VBD
advancing/VBG
issues/NNS
,/,
454/CD
to/TO
451/CD
./.
Investors/NNS
switched/VBD
trading/NN
focus/NN
quickly/RB
as/IN
they/PRP
did/VBD
Tuesday/NNP
,/,
reflecting/VBG
uncertainty/NN
about/IN
long-term/JJ
commitments/NNS
to/TO
any/DT
issue/NN
or/CC
sector/NN
,/,
traders/NNS
said/VBD
./.
Speculation/NN
,/,
on/IN
the/DT
other/JJ
hand/NN
,/,
sparked/VBD
buying/NN
in/IN
certain/JJ
incentive-backed/JJ
issues/NNS
,/,
though/IN
rumors/NNS
underlying/VBG
such/JJ
shares/NNS
eventually/RB
proved/VBD
untrue/JJ
./.
The/DT
development/NN
,/,
traders/NNS
said/VBD
,/,
showed/VBD
that/IN
there/EX
is/VBZ
more/JJR
than/IN
ample/JJ
liquidity/NN
available/JJ
for/IN
investment/NN
despite/IN
the/DT
market/NN
's/POS
recent/JJ
directionless/JJ
trend/NN
./.
Dealers/NNS
led/VBD
the/DT
market/NN
Wednesday/NNP
by/IN
actively/RB
trading/VBG
for/IN
their/PRP$
own/JJ
accounts/NNS
,/,
observers/NNS
said/VBD
./.
Institutions/NNS
mostly/RB
remained/VBD
on/IN
the/DT
sidelines/NNS
because/IN
of/IN
uncertainty/NN
regarding/VBG
interest/NN
rates/NNS
and/CC
the/DT
dollar/NN
./.
The/DT
Tokyo/NNP
Stock/NNP
Price/NNP
Index/NNP
Topix/NNP
all/DT
issues/NNS
listed/VBN
in/IN
the/DT
First/NNP
Section/NNP
,/,
which/WDT
gained/VBD
16.05/CD
points/NNS
Tuesday/NNP
,/,
was/VBD
down/RB
1.46/CD
points/NNS
,/,
or/CC
0.05/CD
%/NN
,/,
at/IN
2691.19/CD
./.
The/DT
Second/NNP
Section/NNP
index/NN
,/,
which/WDT
added/VBD
6.84/CD
points/NNS
Tuesday/NNP
,/,
was/VBD
up/RB
5.92/CD
points/NNS
,/,
or/CC
0.16/CD
%/NN
,/,
to/TO
close/VB
at/IN
3648.82/CD
./.
Volume/NN
in/IN
the/DT
second/JJ
section/NN
was/VBD
estimated/VBN
at/IN
18/CD
million/CD
shares/NNS
,/,
up/RB
from/IN
14/CD
million/CD
Tuesday/NNP
./.
Akio/NNP
Yamamoto/NNP
,/,
managing/VBG
director/NN
of/IN
Nomura/NNP
Investment/NNP
Trust/NNP
Management/NNP
,/,
said/VBD
that/IN
if/IN
the/DT
U.S./NNP
federal/JJ
funds/NNS
rate/NN
declines/VBZ
to/TO
around/IN
8.5/CD
%/NN
,/,
institutions/NNS
would/MD
acquire/VB
a/DT
clearer/JJR
idea/NN
regarding/VBG
the/DT
direction/NN
of/IN
the/DT
market/NN
and/CC
thus/RB
more/RBR
comfortably/RB
participate/VB
in/IN
active/JJ
buying/NN
./.
Tokyu/NNP
Group/NNP
,/,
Mitsubishi/NNP
Estate/NNP
and/CC
Bridgestone\/Firestone/NNP
,/,
which/WDT
advanced/VBD
Tuesday/NNP
,/,
declined/VBD
on/IN
profit-taking/NN
./.
Wednesday/NNP
's/POS
dominant/JJ
issue/NN
was/VBD
Yasuda/NNP
Fire/NNP
&/CC
Marine/NNP
Insurance/NNP
,/,
which/WDT
continued/VBD
to/TO
surge/VB
on/IN
rumors/NNS
of/IN
speculative/JJ
buying/NN
./.
It/PRP
ended/VBD
the/DT
day/NN
up/RB
80/CD
yen/NNS
56/CD
cents/NNS
1,880/CD
yen/NN
$/$
13.15/CD
Due/JJ
to/TO
continuingly/RB
high/JJ
gold/NN
prices/NNS
tied/VBN
to/TO
uncertainty/NN
about/IN
the/DT
U.S./NNP
currency/NN
,/,
investor/NN
interest/NN
was/VBD
directed/VBN
toward/IN
oil/NN
and/CC
mining/NN
shares/NNS
,/,
which/WDT
traders/NNS
called/VBD
a/DT
``/``
defensive/JJ
''/''
action/NN
frequently/RB
taken/VBN
when/WRB
the/DT
dollar/NN
is/VBZ
expected/VBN
to/TO
fall/VB
or/CC
during/IN
times/NNS
of/IN
inflation/NN
./.
Teikoku/NNP
Oil/NNP
,/,
also/RB
stimulated/VBN
by/IN
rumors/NNS
of/IN
speculative/JJ
buying/NN
,/,
advanced/VBD
100/CD
yen/NN
to/TO
1,460/CD
./.
Showa/NNP
Shell/NNP
gained/VBD
20/CD
to/TO
1,570/CD
and/CC
Mitsubishi/NNP
Oil/NNP
rose/VBD
50/CD
to/TO
1,500/CD
./.
Sumitomo/NNP
Metal/NNP
Mining/NNP
fell/VBD
five/CD
yen/NN
to/TO
692/CD
and/CC
Nippon/NNP
Mining/NNP
added/VBD
15/CD
to/TO
960/CD
./.
Among/IN
other/JJ
winners/NNS
Wednesday/NNP
was/VBD
Nippon/NNP
Shokubai/NNP
,/,
which/WDT
was/VBD
up/IN
80/CD
at/IN
2,410/CD
./.
Marubeni/NNP
advanced/VBD
11/CD
to/TO
890/CD
./.
London/NNP
share/NN
prices/NNS
were/VBD
bolstered/VBN
largely/RB
by/IN
continued/VBN
gains/NNS
on/IN
Wall/NNP
Street/NNP
and/CC
technical/JJ
factors/NNS
affecting/VBG
demand/NN
for/IN
London/NNP
's/POS
blue-chip/JJ
stocks/NNS
./.
The/DT
Financial/NNP
Times-Stock/NNP
Exchange/NNP
100-share/JJ
index/NN
closed/VBD
17.5/CD
points/NNS
higher/JJR
at/IN
2160.1/CD
./.
It/PRP
rose/VBD
largely/RB
throughout/IN
the/DT
session/NN
after/IN
posting/VBG
an/DT
intraday/NN
low/JJ
of/IN
2141.7/CD
in/IN
the/DT
first/JJ
40/CD
minutes/NNS
of/IN
trading/NN
./.
The/DT
index/NN
ended/VBD
the/DT
day/NN
near/IN
its/PRP$
session/NN
high/JJ
of/IN
2163.2/CD
,/,
which/WDT
was/VBD
posted/VBN
within/IN
the/DT
last/JJ
half-hour/NN
of/IN
trading/NN
./.
Dealers/NNS
said/VBD
most/JJS
investor/NN
interest/NN
was/VBD
focused/VBN
on/IN
defensive/JJ
blue-chip/JJ
stocks/NNS
,/,
particularly/RB
those/DT
with/IN
limited/JJ
U.K./NNP
exposure/NN
./.
Also/RB
,/,
several/JJ
key/JJ
blue/JJ
chips/NNS
were/VBD
pushed/VBN
higher/JJR
in/IN
thin/JJ
volume/NN
because/IN
of/IN
a/DT
technical/JJ
squeeze/NN
among/IN
market/NN
makers/NNS
./.
Sterling/NNP
's/POS
firm/JJ
tone/NN
,/,
combined/VBN
with/IN
a/DT
steady/JJ
opening/NN
on/IN
Wall/NNP
Street/NNP
,/,
also/RB
tempted/VBD
some/DT
investors/NNS
to/TO
come/VB
back/RB
to/TO
the/DT
market/NN
,/,
dealers/NNS
said/VBD
./.
There/EX
were/VBD
concerns/NNS
early/RB
in/IN
the/DT
day/NN
that/IN
Wall/NNP
Street/NNP
's/POS
sharp/JJ
gains/NNS
on/IN
Tuesday/NNP
were/VBD
overdone/VBN
and/CC
due/JJ
for/IN
a/DT
reversal/NN
./.
The/DT
FT/NNP
30-share/JJ
index/NN
settled/VBD
16.7/CD
points/NNS
higher/JJR
at/IN
1738.1/CD
./.
Volume/NN
was/VBD
372.9/CD
million/CD
shares/NNS
,/,
up/RB
from/IN
334.5/CD
million/CD
on/IN
Tuesday/NNP
./.
Dealers/NNS
said/VBD
institutions/NNS
were/VBD
still/RB
largely/RB
hugging/VBG
the/DT
sidelines/NNS
on/IN
fears/NNS
that/IN
the/DT
market/NN
's/POS
recent/JJ
technical/JJ
rally/NN
might/MD
prove/VB
fragile/JJ
./.
They/PRP
cited/VBD
Wall/NNP
Street/NNP
's/POS
recent/JJ
volatility/NN
and/CC
the/DT
lack/NN
of/IN
a/DT
clear/JJ
indication/NN
over/IN
the/DT
market/NN
's/POS
short-term/JJ
direction/NN
as/IN
factors/NNS
in/IN
the/DT
institutional/JJ
caution/NN
./.
Jaguar/NNP
,/,
a/DT
U.K./NNP
luxury/NN
auto/NN
maker/NN
being/VBG
pursued/VBN
by/IN
Ford/NNP
Motor/NNP
and/CC
General/NNP
Motors/NNPS
,/,
gained/VBD
10/CD
pence/NN
16/CD
cents/NNS
a/DT
share/NN
to/TO
close/VB
at/IN
879/CD
pence/NN
$/$
13.90/CD
It/PRP
shed/VBD
about/IN
7/CD
pence/NN
,/,
however/RB
,/,
after/IN
dealers/NNS
said/VBD
the/DT
market/NN
was/VBD
disappointed/VBN
that/IN
Ford/NNP
did/VBD
n't/RB
move/VB
to/TO
tender/VB
a/DT
bid/NN
for/IN
control/NN
of/IN
the/DT
company/NN
./.
Dealers/NNS
said/VBD
the/DT
U.K./NNP
government/NN
's/POS
decision/NN
Tuesday/NNP
to/TO
waive/VB
its/PRP$
protective/JJ
``/``
golden/JJ
share/NN
''/''
in/IN
the/DT
auto/NN
maker/NN
raised/VBD
prospects/NNS
of/IN
a/DT
bidding/NN
war/NN
between/IN
the/DT
two/CD
U.S./NNP
auto/NN
giants/NNS
./.
But/CC
the/DT
waiver/NN
also/RB
was/VBD
seen/VBN
as/IN
a/DT
signal/NN
that/IN
Ford/NNP
,/,
a/DT
major/JJ
U.K./NNP
auto/NN
industry/NN
employer/NN
,/,
was/VBD
able/JJ
to/TO
gain/VB
government/NN
acceptance/NN
of/IN
its/PRP$
bid/NN
for/IN
control/NN
of/IN
Jaguar/NNP
./.
Dealers/NNS
said/VBD
that/DT
interpretation/NN
sparked/VBD
expectations/NNS
of/IN
an/DT
imminent/JJ
bid/NN
by/IN
Ford/NNP
./.
B.A.T/NNP
Industries/NNPS
,/,
which/WDT
is/VBZ
being/VBG
pursued/VBN
by/IN
Sir/NNP
James/NNP
Goldsmith/NNP
's/POS
Hoylake/NNP
Investments/NNPS
,/,
rose/VBD
9/CD
to/TO
753/CD
on/IN
speculation/NN
that/IN
Hoylake/NNP
will/MD
sweeten/VB
its/PRP$
bid/NN
,/,
dealers/NNS
said/VBD
./.
Like/IN
Jaguar/NNP
,/,
B.A.T/NNP
also/RB
eased/VBD
off/IN
its/PRP$
highs/NNS
in/IN
afternoon/NN
dealings/NNS
./.
Reed/NNP
International/NNP
,/,
a/DT
U.K./NNP
publishing/NN
group/NN
,/,
gained/VBD
15/CD
to/TO
397/CD
despite/IN
reporting/VBG
a/DT
3.7/CD
%/NN
drop/NN
in/IN
interim/JJ
pretax/NN
profit/NN
./.
Analysts/NNS
said/VBD
the/DT
fall/NN
in/IN
pretax/NN
profit/NN
was/VBD
due/JJ
to/TO
the/DT
group/NN
's/POS
recent/JJ
restructuring/NN
and/CC
sale/NN
of/IN
peripheral/JJ
units/NNS
,/,
and/CC
that/IN
its/PRP$
remaining/VBG
businesses/NNS
are/VBP
performing/VBG
well/RB
./.
Dealers/NNS
said/VBD
the/DT
market/NN
agreed/VBD
./.
Stocks/NNS
boosted/VBN
by/IN
market-makers/NNS
shopping/VBG
to/TO
cover/VB
book/NN
requirements/NNS
in/IN
FT-SE/NNP
100/CD
shares/NNS
included/VBD
Carlton/NNP
Communications/NNPS
,/,
which/WDT
climbed/VBD
32/CD
to/TO
778/CD
./.
Drug/NN
companies/NNS
in/IN
the/DT
key/JJ
index/NN
also/RB
notched/VBD
gains/NNS
as/IN
market-makers/NNS
searched/VBD
for/IN
stock/NN
in/IN
anticipation/NN
of/IN
demand/NN
due/JJ
to/TO
the/DT
sector/NN
's/POS
defensive/JJ
qualities/NNS
./.
Wellcome/NNP
gained/VBD
18/CD
to/TO
666/CD
on/IN
a/DT
modest/JJ
1.1/CD
million/CD
shares/NNS
./.
Glaxo/NNP
,/,
the/DT
U.K./NNP
's/POS
largest/JJS
pharmaceutical/JJ
concern/NN
,/,
advanced/VBD
23/CD
to/TO
#/#
14.13/CD
./.
Stock/NN
prices/NNS
closed/VBD
higher/JJR
in/IN
Stockholm/NNP
,/,
Amsterdam/NNP
and/CC
Frankfurt/NNP
and/CC
lower/JJR
in/IN
Zurich/NNP
./.
Paris/NNP
,/,
Brussels/NNP
,/,
and/CC
Milan/NNP
were/VBD
closed/VBN
for/IN
a/DT
holiday/NN
./.
South/JJ
African/JJ
gold/NN
stocks/NNS
closed/VBD
marginally/RB
lower/JJR
./.
Elsewhere/RB
,/,
share/NN
prices/NNS
closed/VBD
higher/JJR
in/IN
Singapore/NNP
,/,
Taipei/NNP
and/CC
Wellington/NNP
,/,
were/VBD
mixed/VBN
in/IN
Hong/NNP
Kong/NNP
,/,
lower/JJR
in/IN
Seoul/NNP
and/CC
little/RB
changed/VBN
in/IN
Sydney/NNP
./.
Manila/NNP
markets/NNS
were/VBD
closed/VBN
for/IN
a/DT
holiday/NN
./.
Here/RB
are/VBP
price/NN
trends/NNS
on/IN
the/DT
world/NN
's/POS
major/JJ
stock/NN
markets/NNS
,/,
as/IN
calculated/VBN
by/IN
Morgan/NNP
Stanley/NNP
Capital/NNP
International/NNP
Perspective/NNP
,/,
Geneva/NNP
./.
To/TO
make/VB
them/PRP
directly/RB
comparable/JJ
,/,
each/DT
index/NN
is/VBZ
based/VBN
on/IN
the/DT
close/NN
of/IN
1969/CD
equaling/VBG
100/CD
./.
The/DT
percentage/NN
change/NN
is/VBZ
since/IN
year-end/NN
./.
The/DT
following/VBG
issues/NNS
were/VBD
recently/RB
filed/VBN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
:/:
Intermec/NNP
Corp./NNP
,/,
offering/VBG
of/IN
1,050,000/CD
common/JJ
shares/NNS
,/,
via/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
and/CC
Piper/NNP
,/,
Jaffray/NNP
&/CC
Hopwood/NNP
Inc/NNP
./.
Middlesex/NNP
Water/NNP
Co./NNP
,/,
offering/VBG
of/IN
150,000/CD
shares/NNS
of/IN
common/JJ
stock/NN
,/,
via/IN
Legg/NNP
Mason/NNP
Wood/NNP
Walker/NNP
Inc./NNP
and/CC
Howard/NNP
,/,
Weil/NNP
,/,
Labouisse/NNP
,/,
Friedrichs/NNP
Inc/NNP
./.
Midwesco/NNP
Filter/NNP
Resources/NNPS
Inc./NNP
,/,
initial/JJ
offering/NN
of/IN
830,000/CD
common/JJ
shares/NNS
,/,
to/TO
be/VB
offered/VBN
by/IN
the/DT
company/NN
,/,
via/IN
Chicago/NNP
Corp/NNP
./.
Nylev/NNP
Municipal/NNP
Fund/NNP
Inc./NNP
,/,
offering/NN
of/IN
five/CD
million/CD
common/JJ
shares/NNS
./.
Occidental/NNP
Petroleum/NNP
Corp./NNP
,/,
shelf/NN
offering/NN
of/IN
$/$
1.5/CD
billion/CD
in/IN
senior/JJ
debt/NN
securities/NNS
./.
Prime/NNP
Motor/NNP
Inns/NNPS
Inc./NNP
,/,
offering/NN
of/IN
up/IN
to/TO
$/$
300/CD
million/CD
zero/CD
coupon/NN
convertible/JJ
debentures/NNS
,/,
via/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
and/CC
Montgomery/NNP
Securities/NNPS
./.
Service/NNP
Fracturing/NNP
Co./NNP
,/,
proposed/VBD
offering/NN
of/IN
1.2/CD
million/CD
shares/NNS
of/IN
common/JJ
stock/NN
,/,
via/IN
Lovett/NNP
Mitchell/NNP
Webb/NNP
&/CC
Garrison/NNP
,/,
Inc./NNP
,/,
and/CC
Blunt/NNP
Ellis/NNP
&/CC
Loewi/NNP
Inc/NNP
./.
Western/NNP
Gas/NNP
Resources/NNPS
Inc./NNP
,/,
initial/JJ
offering/NN
of/IN
3,250,000/CD
shares/NNS
of/IN
common/JJ
stock/NN
,/,
of/IN
which/WDT
3,040,000/CD
shares/NNS
will/MD
be/VB
sold/VBN
by/IN
the/DT
company/NN
and/CC
210,000/CD
shares/NNS
by/IN
a/DT
holder/NN
,/,
via/IN
Prudential-Bache/NNP
Capital/NNP
Funding/NNP
,/,
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
&/CC
Co./NNP
,/,
and/CC
Hanifen/NNP
,/,
Imhoff/NNP
Inc/NNP
./.
Hold/VB
the/DT
Putty/NN
!/.
With/IN
lipsticks/NNS
,/,
liners/NNS
,/,
lotions/NNS
and/CC
creams/NNS
,/,
There/EX
are/VBP
still/RB
beauty/NN
plans/NNS
left/VBN
to/TO
tackle/VB
:/:
But/CC
as/IN
the/DT
years/NNS
go/VBP
by/IN
,/,
it/PRP
seems/VBZ
That/IN
before/IN
I/PRP
paint/VBP
,/,
I/PRP
should/MD
spackle/VB
./.
--/:
Pat/NNP
D'Amico/NNP
./.
Criminal/JJ
charges/NNS
were/VBD
filed/VBN
against/IN
Diceon/NNP
Electronics/NNP
Inc./NNP
and/CC
two/CD
company/NN
officials/NNS
alleging/VBG
waste/NN
disposal/NN
violations/NNS
in/IN
its/PRP$
Chatsworth/NNP
,/,
Calif./NNP
,/,
facility/NN
./.
The/DT
Los/NNP
Angeles/NNP
County/NNP
district/NN
attorney/NN
's/POS
office/NN
filed/VBD
seven/CD
felony/NN
and/CC
five/CD
misdemeanor/NN
counts/NNS
charging/VBG
that/IN
late/JJ
last/JJ
year/NN
and/CC
early/RB
this/DT
year/NN
the/DT
Irvine/NNP
,/,
Calif.-based/JJ
circuit-board/NN
manufacturer/NN
illegally/RB
disposed/VBD
of/IN
acid/NN
,/,
caustic/JJ
and/CC
heavy/JJ
metals/NNS
into/IN
the/DT
sewer/NN
system/NN
,/,
and/CC
stored/VBD
hazardous/JJ
materials/NNS
in/IN
leaky/JJ
,/,
unlabeled/JJ
or/CC
open-top/JJ
containers/NNS
./.
Named/VBN
as/IN
defendants/NNS
were/VBD
Roland/NNP
Matthews/NNP
,/,
president/NN
,/,
and/CC
Peter/NNP
Jonas/NNP
,/,
executive/JJ
vice/NN
president/NN
and/CC
chief/NN
financial/JJ
officer/NN
,/,
as/RB
well/RB
as/IN
a/DT
former/JJ
plant/NN
manager/NN
./.
The/DT
company/NN
said/VBD
local/JJ
authorities/NNS
held/VBD
hearings/NNS
on/IN
the/DT
allegations/NNS
last/JJ
spring/NN
and/CC
had/VBD
returned/VBN
the/DT
plant/NN
to/TO
``/``
routine/JJ
inspection/NN
''/''
in/IN
August/NNP
./.
``/``
The/DT
company/NN
does/VBZ
not/RB
feel/VB
that/IN
it/PRP
or/CC
any/DT
of/IN
the/DT
individuals/NNS
violated/VBD
any/DT
criminal/JJ
statute/NN
and/CC
the/DT
company/NN
expects/VBZ
full/JJ
vindication/NN
in/IN
court/NN
./.
''/''
Arraignments/NNS
are/VBP
scheduled/VBN
for/IN
Nov./NNP
14/CD
./.
Consumer/NN
confidence/NN
stayed/VBD
strong/JJ
in/IN
October/NNP
,/,
despite/IN
the/DT
unsettling/JJ
gyrations/NNS
of/IN
the/DT
stock/NN
market/NN
./.
``/``
The/DT
sharp/JJ
stock/NN
market/NN
decline/NN
in/IN
late/JJ
October/NNP
appears/VBZ
to/TO
have/VB
had/VBN
little/JJ
or/CC
no/DT
effect/NN
on/IN
consumers/NNS
,/,
''/''
said/VBD
Fabian/NNP
Linden/NNP
,/,
executive/JJ
director/NN
of/IN
the/DT
Conference/NNP
Board/NNP
's/POS
consumer/NN
research/NN
center/NN
./.
``/``
Survey/NN
returns/NNS
received/VBN
after/IN
the/DT
drop/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
average/NN
were/VBD
about/IN
the/DT
same/JJ
as/IN
the/DT
views/NNS
expressed/VBN
prior/RB
to/TO
that/DT
event/NN
./.
''/''
The/DT
nonprofit/JJ
,/,
industry-supported/JJ
group/NN
said/VBD
its/PRP$
Consumer/NNP
Confidence/NNP
Index/NNP
was/VBD
116.4/CD
in/IN
October/NNP
,/,
barely/RB
changed/VBN
from/IN
a/DT
revised/VBN
116.3/CD
in/IN
September/NNP
./.
The/DT
index/NN
was/VBD
116.9/CD
in/IN
October/NNP
1988/CD
and/CC
in/IN
the/DT
past/NN
year/NN
has/VBZ
ranged/VBN
from/IN
a/DT
low/JJ
of/IN
112.9/CD
to/TO
a/DT
high/JJ
of/IN
120.7/CD
./.
It/PRP
uses/VBZ
a/DT
base/NN
of/IN
100/CD
in/IN
1985/CD
./.
In/IN
October/NNP
,/,
more/JJR
people/NNS
said/VBD
that/IN
present/JJ
business/NN
conditions/NNS
were/VBD
``/``
good/JJ
''/''
than/IN
in/IN
September/NNP
./.
An/DT
equal/JJ
number/NN
in/IN
each/DT
month/NN
said/VBD
that/IN
employment/NN
conditions/NNS
were/VBD
good/JJ
./.
And/CC
19.6/CD
%/NN
of/IN
consumers/NNS
contacted/VBN
believed/VBD
business/NN
conditions/NNS
will/MD
improve/VB
in/IN
the/DT
coming/VBG
six/CD
months/NNS
,/,
compared/VBN
with/IN
18.3/CD
%/NN
in/IN
September/NNP
./.
Also/RB
,/,
more/JJR
people/NNS
said/VBD
conditions/NNS
will/MD
worsen/VB
in/IN
the/DT
period/NN
./.
conditions/NNS
wo/MD
n't/RB
change/VB
./.
October/NNP
1988/CD
,/,
21.1/CD
%/NN
said/VBD
business/NN
conditions/NNS
would/MD
improve/VB
./.
In/IN
October/NNP
1989/CD
,/,
16.9/CD
%/NN
said/VBD
more/JJR
jobs/NNS
will/MD
be/VB
created/VBN
in/IN
the/DT
coming/VBG
six/CD
months/NNS
,/,
compared/VBN
with/IN
17.4/CD
%/NN
in/IN
September/NNP
and/CC
18.6/CD
%/NN
in/IN
October/NNP
1988/CD
./.
Only/RB
26.8/CD
%/NN
in/IN
October/NNP
,/,
compared/VBN
with/IN
28.5/CD
%/NN
in/IN
September/NNP
and/CC
26.8/CD
%/NN
in/IN
October/NNP
1988/CD
,/,
said/VBD
income/NN
would/MD
increase/VB
./.
``/``
The/DT
sustained/VBN
level/NN
of/IN
confidence/NN
can/MD
be/VB
attributed/VBN
to/TO
the/DT
continued/VBN
favorable/JJ
circumstances/NNS
which/WDT
affect/VBP
the/DT
consumer/NN
's/POS
day-to-day/JJ
economic/JJ
life/NN
,/,
''/''
said/VBD
Mr./NNP
Linden/NNP
./.
``/``
Unemployment/NN
continues/VBZ
at/IN
a/DT
relatively/RB
low/JJ
level/NN
,/,
providing/VBG
a/DT
sense/NN
of/IN
job/NN
security/NN
,/,
and/CC
a/DT
low/JJ
inflation/NN
rate/NN
has/VBZ
kept/VBN
the/DT
purchasing/VBG
power/NN
of/IN
the/DT
weekly/JJ
paycheck/NN
reasonably/RB
strong/JJ
./.
''/''
The/DT
consumer/NN
confidence/NN
survey/NN
,/,
covering/VBG
5,000/CD
U.S./NNP
households/NNS
,/,
is/VBZ
conducted/VBN
in/IN
the/DT
first/JJ
two/CD
weeks/NNS
of/IN
each/DT
month/NN
for/IN
the/DT
Conference/NNP
Board/NNP
by/IN
National/NNP
Family/NNP
Opinion/NNP
Inc./NNP
,/,
a/DT
Toledo/NNP
,/,
Ohio/NNP
,/,
market/NN
researcher/NN
./.
Buying/VBG
plans/NNS
were/VBD
mixed/VBN
in/IN
October/NNP
,/,
with/IN
fewer/JJR
households/NNS
indicating/VBG
plans/NNS
to/TO
buy/VB
cars/NNS
and/CC
more/RBR
saying/VBG
they/PRP
will/MD
buy/VB
homes/NNS
and/CC
appliances/NNS
in/IN
the/DT
coming/VBG
six/CD
months/NNS
./.
In/IN
October/NNP
,/,
6.7/CD
%/NN
of/IN
respondents/NNS
said/VBD
they/PRP
will/MD
buy/VB
a/DT
car/NN
,/,
easing/VBG
from/IN
September/NNP
when/WRB
8.1/CD
%/NN
anticipated/VBD
a/DT
purchase/NN
./.
In/IN
October/NNP
1988/CD
,/,
7.3/CD
%/NN
said/VBD
they/PRP
would/MD
buy/VB
a/DT
car/NN
./.
Home/NN
purchase/NN
plans/NNS
increased/VBD
to/TO
3.3/CD
%/NN
from/IN
3.1/CD
%/NN
in/IN
the/DT
two/CD
recent/JJ
months/NNS
./.
In/IN
October/NNP
1988/CD
,/,
3.7/CD
%/NN
said/VBD
they/PRP
would/MD
buy/VB
a/DT
house/NN
./.
In/IN
1989/CD
,/,
home/NN
purchase/NN
plans/NNS
have/VBP
ranged/VBN
monthly/RB
from/IN
2.9/CD
%/NN
to/TO
3.7/CD
%/NN
of/IN
respondents/NNS
./.
In/IN
October/NNP
,/,
30.6/CD
%/NN
said/VBD
they/PRP
will/MD
buy/VB
appliances/NNS
in/IN
the/DT
coming/VBG
six/CD
months/NNS
,/,
compared/VBN
with/IN
27.4/CD
%/NN
in/IN
September/NNP
and/CC
26.5/CD
%/NN
in/IN
October/NNP
1988/CD
./.
Despite/IN
a/DT
deluge/NN
of/IN
economic/JJ
news/NN
,/,
the/DT
Treasury/NNP
market/NN
remained/VBD
quiet/JJ
but/CC
the/DT
corporate/JJ
market/NN
was/VBD
abuzz/JJ
over/IN
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
's/POS
huge/JJ
debt/NN
offering/NN
./.
``/``
There/EX
were/VBD
so/RB
many/JJ
economic/JJ
reports/NNS
but/CC
the/DT
market/NN
did/VBD
n't/RB
care/VB
about/IN
any/DT
of/IN
them/PRP
,/,
''/''
said/VBD
Kathleen/NNP
Camilli/NNP
,/,
a/DT
money/NN
market/NN
economist/NN
at/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc/NNP
./.
``/``
So/IN
the/DT
focus/NN
turned/VBD
to/TO
other/JJ
fixed-income/JJ
markets/NNS
,/,
corporate/JJ
and/CC
mortgages/NNS
in/IN
particular/JJ
,/,
''/''
she/PRP
said/VBD
./.
IBM/NNP
,/,
the/DT
giant/JJ
computer/NN
maker/NN
,/,
offered/VBD
$/$
750/CD
million/CD
of/IN
non-callable/JJ
30-year/JJ
debentures/NNS
priced/VBN
to/TO
yield/VB
8.47/CD
%/NN
,/,
or/CC
about/IN
1\/2/CD
percentage/NN
point/NN
higher/JJR
than/IN
the/DT
yield/NN
on/IN
30-year/JJ
Treasury/NNP
bonds/NNS
./.
The/DT
size/NN
of/IN
IBM/NNP
's/POS
issue/NN
was/VBD
increased/VBN
from/IN
an/DT
originally/RB
planned/VBN
$/$
500/CD
million/CD
as/IN
money/NN
managers/NNS
and/CC
investors/NNS
scrambled/VBD
to/TO
buy/VB
the/DT
bonds/NNS
./.
In/IN
the/DT
investment-grade/JJ
corporate/JJ
market/NN
,/,
``/``
it/PRP
's/VBZ
rare/JJ
that/IN
you/PRP
get/VBP
an/DT
opportunity/NN
to/TO
buy/VB
a/DT
name/NN
that/WDT
has/VBZ
such/JJ
broad/JJ
appeal/NN
and/CC
has/VBZ
such/JJ
attractive/JJ
call/NN
features/NNS
,/,
''/''
said/VBD
James/NNP
Ednie/NNP
,/,
a/DT
Drexel/NNP
industrial/JJ
bond/NN
trader/NN
./.
Money/NN
managers/NNS
ranked/VBD
IBM/NNP
's/POS
offering/NN
as/IN
the/DT
most/RBS
significant/JJ
investment-grade/JJ
sale/NN
of/IN
the/DT
year/NN
because/IN
large/JJ
issues/NNS
of/IN
long-term/JJ
debt/NN
by/IN
companies/NNS
with/IN
triple-A/JJ
credit/NN
are/VBP
infrequent/JJ
./.
Syndicate/NN
officials/NNS
at/IN
lead/NN
underwriter/NN
Salomon/NNP
Brothers/NNPS
Inc./NNP
said/VBD
the/DT
debentures/NNS
were/VBD
snapped/VBN
by/IN
up/IN
pension/NN
funds/NNS
,/,
banks/NNS
,/,
insurance/NN
companies/NNS
and/CC
other/JJ
institutional/JJ
investors/NNS
./.
In/IN
the/DT
Treasury/NNP
market/NN
,/,
investors/NNS
paid/VBD
scant/JJ
attention/NN
to/TO
the/DT
day/NN
's/POS
economic/JJ
reports/NNS
,/,
which/WDT
for/IN
the/DT
most/JJS
part/NN
provided/VBD
a/DT
mixed/VBN
view/NN
of/IN
the/DT
economy/NN
./.
``/``
Whether/IN
you/PRP
thought/VBD
the/DT
economy/NN
was/VBD
growing/VBG
weak/JJ
or/CC
holding/VBG
steady/JJ
,/,
yesterday/NN
's/POS
economic/JJ
indicators/NNS
did/VBD
n't/RB
change/VB
your/PRP$
opinion/NN
,/,
''/''
said/VBD
Charles/NNP
Lieberman/NNP
,/,
a/DT
managing/VBG
director/NN
at/IN
Manufacturers/NNPS
Hanover/NNP
Securities/NNPS
Corp/NNP
./.
The/DT
government/NN
reported/VBD
that/IN
orders/NNS
for/IN
manufactured/VBN
goods/NNS
were/VBD
essentially/RB
unchanged/JJ
in/IN
September/NNP
while/IN
construction/NN
spending/NN
was/VBD
slightly/RB
lower/JJR
./.
Both/DT
indicators/NNS
were/VBD
viewed/VBN
as/IN
signs/NNS
that/IN
the/DT
nation/NN
's/POS
industrial/JJ
sector/NN
is/VBZ
growing/VBG
very/RB
slowly/RB
,/,
if/IN
at/IN
all/DT
./.
A/DT
survey/NN
by/IN
the/DT
Federal/NNP
Reserve/NNP
's/POS
12/CD
district/NN
banks/NNS
and/CC
the/DT
latest/JJS
report/NN
by/IN
the/DT
National/NNP
Association/NNP
of/IN
Purchasing/NNP
Management/NNP
blurred/VBD
that/DT
picture/NN
of/IN
the/DT
economy/NN
./.
In/IN
a/DT
monthly/JJ
report/NN
prepared/VBN
for/IN
use/NN
at/IN
the/DT
Fed/NNP
's/POS
next/JJ
Federal/NNP
Open/NNP
Market/NNP
Committee/NNP
meeting/NN
on/IN
Nov./NNP
14./CD
,/,
the/DT
nation/NN
's/POS
central/JJ
bank/NN
found/VBD
that/IN
price/NN
increases/NNS
have/VBP
moderated/VBN
and/CC
economic/JJ
activity/NN
has/VBZ
grown/VBN
at/IN
a/DT
sluggish/JJ
pace/NN
in/IN
recent/JJ
weeks/NNS
./.
Among/IN
other/JJ
things/NNS
,/,
the/DT
survey/NN
found/VBD
that/IN
manufacturing/NN
activity/NN
varied/VBD
considerably/RB
across/IN
districts/NNS
and/CC
among/IN
industries/NNS
./.
The/DT
Philadelphia/NNP
and/CC
Cleveland/NNP
districts/NNS
,/,
for/IN
example/NN
,/,
reported/VBD
declines/NNS
in/IN
manufacturing/NN
activity/NN
while/IN
the/DT
Boston/NNP
,/,
Dallas/NNP
and/CC
San/NNP
Francisco/NNP
banks/NNS
noted/VBD
that/IN
business/NN
expanded/VBD
./.
The/DT
purchasing/VBG
managers/NNS
index/NN
of/IN
economic/JJ
activity/NN
rose/VBD
in/IN
October/NNP
,/,
although/IN
it/PRP
remains/VBZ
below/IN
50/CD
%/NN
./.
A/DT
reading/NN
below/IN
50/CD
%/NN
indicates/VBZ
that/IN
the/DT
manufacturing/VBG
sector/NN
is/VBZ
slowing/VBG
while/IN
a/DT
reading/NN
above/IN
50/CD
%/NN
suggests/VBZ
that/IN
the/DT
industry/NN
is/VBZ
expanding/VBG
./.
Mr./NNP
Lieberman/NNP
said/VBD
the/DT
diverse/JJ
showing/NN
in/IN
yesterday/NN
's/POS
reports/NNS
``/``
only/RB
enhances/VBZ
the/DT
importance/NN
of/IN
the/DT
employment/NN
data/NNS
./.
''/''
The/DT
employment/NN
report/NN
,/,
which/WDT
at/IN
times/NNS
has/VBZ
caused/VBN
wide/JJ
swings/NNS
in/IN
bond/NN
prices/NNS
,/,
is/VBZ
due/JJ
out/IN
tomorrow/NN
./.
The/DT
average/JJ
estimate/NN
of/IN
22/CD
economists/NNS
polled/VBN
by/IN
Dow/NNP
Jones/NNP
Capital/NNP
Markets/NNPS
Report/NNP
was/VBD
that/IN
non-farm/JJ
payrolls/NNS
expanded/VBD
by/IN
152,000/CD
in/IN
October/NNP
./.
The/DT
economists/NNS
forecast/VBP
a/DT
0.1/CD
%/NN
rise/NN
in/IN
the/DT
unemployment/NN
rate/NN
to/TO
5.4/CD
%/NN
./.
Treasury/NNP
Securities/NNPS
In/IN
a/DT
surprise/NN
announcement/NN
,/,
the/DT
Treasury/NNP
said/VBD
it/PRP
will/MD
reopen/VB
the/DT
outstanding/JJ
benchmark/NN
30-year/JJ
bond/NN
rather/RB
than/IN
create/VB
a/DT
new/JJ
one/CD
for/IN
next/JJ
week/NN
's/POS
quarterly/RB
refunding/NN
of/IN
the/DT
federal/JJ
debt/NN
./.
The/DT
Treasury/NNP
will/MD
raise/VB
$/$
10/CD
billion/CD
in/IN
fresh/JJ
cash/NN
by/IN
selling/VBG
$/$
30/CD
billion/CD
of/IN
securities/NNS
,/,
including/VBG
$/$
10/CD
billion/CD
of/IN
new/JJ
three-year/JJ
notes/NNS
and/CC
$/$
10/CD
billion/CD
of/IN
new/JJ
10-year/JJ
notes/NNS
./.
But/CC
rather/RB
than/IN
sell/VB
new/JJ
30-year/JJ
bonds/NNS
,/,
the/DT
Treasury/NNP
will/MD
issue/VB
$/$
10/CD
billion/CD
of/IN
29year/JJ
,/,
nine-month/JJ
bonds/NNS
--/:
essentially/RB
increasing/VBG
the/DT
size/NN
of/IN
the/DT
current/JJ
benchmark/NN
30-year/JJ
bond/NN
that/WDT
was/VBD
sold/VBN
at/IN
the/DT
previous/JJ
refunding/NN
in/IN
August/NNP
./.
Credit/NN
market/NN
analysts/NNS
said/VBD
the/DT
decision/NN
to/TO
reopen/VB
the/DT
current/JJ
benchmark/NN
,/,
the/DT
8/CD
1\/8/CD
%/NN
bond/NN
due/JJ
August/NNP
2019/CD
,/,
is/VBZ
unusual/JJ
because/IN
the/DT
issue/NN
trades/VBZ
at/IN
a/DT
premium/NN
to/TO
its/PRP$
face/NN
amount/NN
./.
Some/DT
dealers/NNS
said/VBD
the/DT
Treasury/NNP
's/POS
intent/NN
is/VBZ
to/TO
help/VB
government/NN
bond/NN
dealers/NNS
gauge/VB
investor/NN
demand/NN
for/IN
the/DT
securities/NNS
,/,
given/VBN
uncertainties/NNS
about/IN
when/WRB
the/DT
auction/NN
will/MD
occur/VB
./.
The/DT
Treasury/NNP
said/VBD
the/DT
refunding/NN
is/VBZ
contingent/NN
upon/IN
congressional/JJ
and/CC
presidential/JJ
passage/NN
of/IN
an/DT
increase/NN
in/IN
the/DT
federal/JJ
debt/NN
ceiling/NN
./.
Until/IN
such/JJ
action/NN
takes/VBZ
places/NNS
,/,
the/DT
Treasury/NNP
has/VBZ
no/DT
ability/NN
to/TO
issue/VB
new/JJ
debt/NN
of/IN
any/DT
kind/NN
./.
Meanwhile/RB
,/,
Treasury/NNP
bonds/NNS
ended/VBD
modestly/RB
higher/JJR
in/IN
quiet/JJ
trading/NN
./.
The/DT
benchmark/NN
30-year/JJ
bond/NN
about/IN
1\/4/CD
point/NN
,/,
or/CC
$/$
2.50/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
./.
The/DT
benchmark/NN
was/VBD
priced/VBN
at/IN
102/CD
22\/32/CD
to/TO
yield/VB
7.88/CD
%/NN
compared/VBN
with/IN
102/CD
12\/32/CD
to/TO
yield/VB
7.90/CD
%/NN
Tuesday/NNP
./.
The/DT
latest/JJS
10-year/JJ
notes/NNS
were/VBD
quoted/VBN
at/IN
100/CD
22\/32/CD
to/TO
yield/VB
7.88/CD
%/NN
compared/VBN
with/IN
100/CD
16\/32/CD
to/TO
yield/VB
7.90/CD
%/NN
./.
The/DT
discount/NN
rate/NN
on/IN
three-month/JJ
Treasury/NNP
bills/NNS
was/VBD
essentially/RB
unchanged/JJ
at/IN
7.79/CD
%/NN
,/,
while/IN
the/DT
rate/NN
on/IN
six-month/JJ
bills/NNS
was/VBD
slightly/RB
lower/JJR
at/IN
7.52/CD
%/NN
compared/VBN
with/IN
7.60/CD
%/NN
Tuesday/NNP
./.
Corporate/NNP
Issues/NNPS
IBM/NNP
's/POS
$/$
750/CD
million/CD
debenture/NN
offering/NN
dominated/VBD
activity/NN
in/IN
the/DT
corporate/JJ
debt/NN
market/NN
./.
Meanwhile/RB
,/,
most/RBS
investment-grade/JJ
bonds/NNS
ended/VBD
unchanged/JJ
to/TO
as/RB
much/JJ
as/IN
1\/8/CD
point/NN
higher/JJR
./.
In/IN
its/PRP$
latest/JJS
compilation/NN
of/IN
performance/NN
statistics/NNS
,/,
Moody/NNP
's/POS
Investors/NNPS
Service/NNP
found/VBD
that/IN
investment-grade/JJ
bonds/NNS
posted/VBD
a/DT
total/JJ
return/NN
of/IN
2.7/CD
%/NN
in/IN
October/NNP
while/IN
junk/NN
bonds/NNS
showed/VBD
a/DT
negative/JJ
return/NN
of/IN
1.5/CD
%/NN
./.
Moody/NNP
's/POS
said/VBD
those/DT
returns/NNS
compare/VBP
with/IN
a/DT
3.8/CD
%/NN
total/JJ
return/NN
for/IN
longer-term/JJ
Treasury/NNP
notes/NNS
and/CC
bonds/NNS
./.
Total/JJ
return/NN
measures/VBZ
price/NN
changes/NNS
and/CC
interest/NN
income/NN
./.
For/IN
the/DT
year/NN
to/TO
date/NN
,/,
Moody/NNP
's/POS
said/VBD
total/JJ
returns/NNS
were/VBD
topped/VBN
by/IN
the/DT
16.5/CD
%/NN
of/IN
longer-term/JJ
Treasury/NNP
issues/NNS
,/,
closely/RB
followed/VBN
by/IN
15/CD
%/NN
for/IN
investment-grade/JJ
bonds/NNS
./.
Junk/NN
bonds/NNS
trailed/VBD
the/DT
group/NN
again/RB
./.
``/``
Even/RB
the/DT
7.2/CD
%/NN
return/NN
from/IN
the/DT
risk-free/JJ
three-month/JJ
Treasury/NNP
bill/NN
has/VBZ
easily/RB
outdistanced/VBN
the/DT
4.1/CD
%/NN
return/NN
from/IN
junk/NN
bonds/NNS
,/,
''/''
wrote/VBD
Moody/NNP
's/POS
economist/NN
John/NNP
Lonski/NNP
in/IN
yesterday/NN
's/POS
market/NN
report/NN
./.
``/``
Little/JJ
wonder/NN
that/IN
buyers/NNS
for/IN
junk/NN
have/VBP
been/VBN
found/VBN
wanting/VBG
,/,
''/''
he/PRP
said/VBD
./.
Moody/NNP
's/POS
said/VBD
the/DT
average/JJ
net/NN
asset/NN
value/NN
of/IN
24/CD
junk-bond/NN
mutual/JJ
funds/NNS
fell/VBD
by/IN
4.2/CD
%/NN
in/IN
October/NNP
./.
Mortgage-Backed/NNP
Issues/NNPS
Mortgage/NN
securities/NNS
ended/VBD
slightly/RB
higher/JJR
but/CC
trailed/VBD
gains/NNS
in/IN
the/DT
Treasury/NNP
market/NN
./.
Ginnie/NNP
Mae/NNP
's/POS
9/CD
%/NN
issue/NN
for/IN
November/NNP
delivery/NN
finished/VBD
at/IN
98/CD
5\/8/CD
,/,
up/RB
2\/32/CD
,/,
and/CC
its/PRP$
9/CD
1\/2/CD
%/NN
issue/NN
at/IN
100/CD
22\/32/CD
,/,
also/RB
up/RB
2\/32/CD
./.
The/DT
Ginnie/NNP
Mae/NNP
9/CD
%/NN
securities/NNS
were/VBD
yielding/VBG
9.32/CD
%/NN
to/TO
a/DT
12-year/JJ
average/NN
life/NN
./.
Activity/NN
was/VBD
light/JJ
in/IN
derivative/JJ
markets/NNS
,/,
with/IN
no/DT
new/JJ
issues/NNS
priced/VBN
./.
Municipal/NNP
Issues/NNPS
Municipal/JJ
bonds/NNS
were/VBD
mostly/RB
unchanged/JJ
to/TO
up/RB
1\/8/CD
point/NN
in/IN
light/JJ
,/,
cautious/JJ
trading/NN
prior/RB
to/TO
tomorrow/NN
's/POS
unemployment/NN
report/NN
./.
A/DT
$/$
114/CD
million/CD
issue/NN
of/IN
health/NN
facility/NN
revenue/NN
bonds/NNS
from/IN
the/DT
California/NNP
Health/NNP
Facilities/NNPS
Financing/NNP
Authority/NNP
was/VBD
temporarily/RB
withdrawn/VBN
after/IN
being/VBG
tentatively/RB
priced/VBN
by/IN
a/DT
First/NNP
Boston/NNP
Corp./NNP
group/NN
./.
An/DT
official/NN
for/IN
the/DT
lead/NN
underwriter/NN
declined/VBD
to/TO
comment/VB
on/IN
the/DT
reason/NN
for/IN
the/DT
delay/NN
,/,
but/CC
market/NN
participants/NNS
speculated/VBD
that/IN
a/DT
number/NN
of/IN
factors/NNS
,/,
including/VBG
a/DT
lack/NN
of/IN
investor/NN
interest/NN
,/,
were/VBD
responsible/JJ
./.
The/DT
issue/NN
could/MD
be/VB
relaunched/VBN
,/,
possibly/RB
in/IN
a/DT
restructured/VBN
form/NN
,/,
as/RB
early/RB
as/IN
next/JJ
week/NN
,/,
according/VBG
to/TO
the/DT
lead/NN
underwriter/NN
./.
A/DT
$/$
107.03/CD
million/CD
offering/NN
of/IN
Santa/NNP
Ana/NNP
Community/NNP
Redevelopment/NNP
Agency/NNP
,/,
Calif./NNP
,/,
tax/NN
allocation/NN
bonds/NNS
got/VBD
off/IN
to/TO
a/DT
slow/JJ
start/NN
and/CC
may/MD
be/VB
repriced/VBN
at/IN
lower/JJR
levels/NNS
today/NN
,/,
according/VBG
to/TO
an/DT
official/NN
with/IN
lead/NN
underwriter/NN
Donaldson/NNP
Lufkin/NNP
&/CC
Jenrette/NNP
Securities/NNPS
Corp/NNP
./.
The/DT
Santa/NNP
Ana/NNP
bonds/NNS
were/VBD
tentatively/RB
priced/VBN
to/TO
yield/VB
from/IN
6.40/CD
%/NN
in/IN
1991/CD
to/TO
7.458/CD
%/NN
in/IN
Bucking/VBG
the/DT
market/NN
trend/NN
,/,
an/DT
issue/NN
of/IN
$/$
130/CD
million/CD
general/JJ
obligation/NN
distributable/JJ
state/NN
aid/NN
bonds/NNS
from/IN
Detroit/NNP
,/,
Mich./NNP
,/,
apparently/RB
drew/VBD
solid/JJ
investor/NN
interest/NN
./.
They/PRP
were/VBD
tentatively/RB
priced/VBN
to/TO
yield/VB
from/IN
6.20/CD
%/NN
in/IN
1991/CD
to/TO
7.272/CD
%/NN
in/IN
Foreign/NNP
Bond/NNP
West/JJ
German/JJ

dealers/NNS
said/VBD
there/EX
was/VBD
little/JJ
interest/NN
in/IN
Treasury/NNP
bonds/NNS
ahead/RB
of/IN
Thursday/NNP
's/POS
new/JJ
government/NN
bond/NN
issue/NN
./.
So/IN
far/RB
,/,
they/PRP
said/VBD
,/,
investors/NNS
appear/VBP
unenthusiastic/JJ
about/IN
the/DT
new/JJ
issue/NN
which/WDT
might/MD
force/VB
the/DT
government/NN
to/TO
raise/VB
the/DT
coupon/NN
to/TO
more/JJR
than/IN
7/CD
%/NN
./.
It/PRP
is/VBZ
generally/RB
expected/VBN
to/TO
be/VB
the/DT
usual/JJ
10-year/JJ
,/,
four/CD
billion/CD
mark/NN
issue/NN
./.
Rumors/NNS
to/TO
the/DT
contrary/NN
have/VBP
been/VBN
that/IN
it/PRP
would/MD
be/VB
a/DT
six/CD
billion/CD
mark/NN
issue/NN
,/,
or/CC
that/IN
the/DT
last/JJ
Bund/NN
,/,
a/DT
7/CD
%/NN
issue/NN
due/JJ
October/NNP
1999/CD
,/,
would/MD
be/VB
increased/VBN
by/IN
two/CD
billion/CD
marks/NNS
./.
Elsewhere/RB
:/:
--/:
In/IN
Japan/NNP
,/,
the/DT
benchmark/NN
No./NN
111/CD
4.6/CD
%/NN
issue/NN
due/JJ
1998/CD
ended/VBD
on/IN
brokers/NNS
screens/NNS
unchanged/JJ
at/IN
95.09/CD
to/TO
yield/VB
5.435/CD
%/NN
./.
--/:
In/IN
Britain/NNP
,/,
the/DT
benchmark/NN
11/CD
3\/4/CD
%/NN
bond/NN
due/JJ
2003\/2007/CD
fell/VBD
14\/32/CD
to/TO
111/CD
2\/32/CD
to/TO
yield/VB
10.19/CD
%/NN
./.
The/DT
12/CD
%/NN
notes/NNS
due/JJ
1995/CD
fell/VBD
9\/32/CD
to/TO
103/CD
3\/8/CD
to/TO
yield/VB
11.10/CD
%/NN
./.
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NNP
lowered/VBD
to/TO
double-C/NN
from/IN
triple-C/NN
the/DT
rating/NN
on/IN
about/IN
$/$
130/CD
million/CD
of/IN
debt/NN
./.
The/DT
rating/NN
concern/NN
said/VBD
the/DT
textile/NN
and/CC
clothing/NN
company/NN
's/POS
interest/NN
expense/NN
exceeds/VBZ
operating/NN
profit/NN
``/``
by/IN
a/DT
wide/JJ
margin/NN
''/''
and/CC
it/PRP
noted/VBD
United/NNP
's/POS
estimated/VBN
after-tax/JJ
loss/NN
of/IN
$/$
24/CD
million/CD
for/IN
the/DT
year/NN
ended/VBD
June/NNP
30/CD
./.
Travelers/NNPS
Corp./NNP
's/POS
third-quarter/NN
net/NN
income/NN
rose/VBD
11/CD
%/NN
,/,
even/RB
though/IN
claims/NNS
stemming/VBG
from/IN
Hurricane/NNP
Hugo/NNP
reduced/VBD
results/NNS
$/$
40/CD
million/CD
./.
Net/NN
advanced/VBD
to/TO
$/$
94.2/CD
million/CD
,/,
or/CC
89/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
85/CD
million/CD
,/,
or/CC
83/CD
cents/NNS
a/DT
share/NN
,/,
including/VBG
net/NN
realized/VBD
investment/NN
gains/NNS
of/IN
$/$
31/CD
million/CD
,/,
up/RB
from/IN
$/$
10/CD
million/CD
a/DT
year/NN
ago/IN
./.
But/CC
revenue/NN
declined/VBD
to/TO
$/$
3/CD
billion/CD
from/IN
$/$
3.2/CD
billion/CD
./.
Travelers/NNPS
estimated/VBD
that/IN
the/DT
California/NNP
earthquake/NN
last/JJ
month/NN
will/MD
result/VB
in/IN
a/DT
fourth-quarter/NN
pre-tax/JJ
charge/NN
of/IN
less/JJR
than/IN
$/$
10/CD
million/CD
./.
The/DT
insurer/NN
's/POS
earnings/NNS
from/IN
commercial/JJ
property\/casualty/NN
lines/NNS
fell/VBD
59/CD
%/NN
in/IN
the/DT
latest/JJS
quarter/NN
,/,
while/IN
it/PRP
lost/VBD
$/$
7.2/CD
million/CD
in/IN
its/PRP$
personal/JJ
property\/casualty/NN
business/NN
,/,
compared/VBN
with/IN
earnings/NNS
of/IN
$/$
6.1/CD
million/CD
a/DT
year/NN
ago/IN
./.
Travelers/NNPS
's/POS
employee/NN
benefits/NNS
group/NN
,/,
which/WDT
includes/VBZ
its/PRP$
group/NN
health/NN
insurance/NN
operations/NNS
,/,
posted/VBD
earnings/NNS
of/IN
$/$
24/CD
million/CD
,/,
compared/VBN
with/IN
a/DT
loss/NN
of/IN
$/$
3/CD
million/CD
last/JJ
year/NN
./.
In/IN
the/DT
first/JJ
nine/CD
months/NNS
,/,
net/NN
was/VBD
$/$
306/CD
million/CD
,/,
compared/VBN
with/IN
a/DT
loss/NN
of/IN
$/$
195/CD
million/CD
in/IN
the/DT
1988/CD
period/NN
./.
The/DT
year-ago/JJ
results/NNS
included/VBD
a/DT
$/$
415/CD
million/CD
charge/NN
in/IN
the/DT
1988/CD
second/JJ
quarter/NN
for/IN
underperforming/VBG
real/JJ
estate/NN
and/CC
mortgage/NN
loans/NNS
./.
The/DT
British/NNP
Department/NNP
of/IN
Trade/NNP
and/CC
Industry/NNP
ordered/VBD
an/DT
investigation/NN
of/IN
the/DT
competitive/JJ
impact/NN
of/IN
Michelin/NNP
Tyre/NNP
PLC/NNP
's/POS
planned/VBN
acquisition/NN
of/IN
National/NNP
Tyre/NNP
Service/NNP
Ltd/NNP
./.
The/DT
department/NN
said/VBD
it/PRP
referred/VBD
the/DT
takeover/NN
to/TO
the/DT
Monopolies/NNPS
and/CC
Mergers/NNPS
Commission/NNP
because/IN
of/IN
the/DT
purchase/NN
's/POS
possible/JJ
effects/NNS
on/IN
the/DT
U.K./NNP
market/NN
for/IN
distribution/NN
of/IN
replacement/NN
tires/NNS
./.
BTR/NNP
PLC/NNP
,/,
a/DT
U.K./NNP
industrial/JJ
conglomerate/NN
,/,
said/VBD
in/IN
June/NNP
it/PRP
had/VBD
sold/VBN
its/PRP$
National/NNP
Tyre/NNP
Service/NNP
business/NN
to/TO
Michelin/NNP
Investment/NNP
Ltd./NNP
,/,
a/DT
U.K./NNP
unit/NN
of/IN
the/DT
tire/NN
maker/NN
,/,
for/IN
#/#
140/CD
million/CD
$/$
221.4/CD
million/CD
Michelin/NNP
Tyre/NNP
is/VBZ
a/DT
unit/NN
of/IN
France/NNP
's/POS
Michelin/NNP
S.A/NNP
./.
Michelin/NNP
officials/NNS
could/MD
n't/RB
immediately/RB
comment/VB
on/IN
the/DT
referral/NN
,/,
but/CC
they/PRP
noted/VBD
the/DT
purchase/NN
from/IN
BTR/NNP
has/VBZ
already/RB
been/VBN
concluded/VBN
./.
National/NNP
Tyre/NNP
,/,
which/WDT
has/VBZ
420/CD
branches/NNS
throughout/IN
the/DT
U.K./NNP
,/,
had/VBD
1988/CD
pretax/NN
profit/NN
of/IN
#/#
8.5/CD
million/CD
./.
Rep./NNP
John/NNP
Dingell/NNP
,/,
an/DT
important/JJ
sponsor/NN
of/IN
President/NNP
Bush/NNP
's/POS
clean-air/JJ
bill/NN
,/,
plans/VBZ
to/TO
unveil/VB
a/DT
surprise/NN
proposal/NN
that/WDT
would/MD
break/VB
with/IN
the/DT
White/NNP
House/NNP
on/IN
a/DT
centerpiece/NN
issue/NN
:/:
acid/JJ
rain/NN
./.
The/DT
Michigan/NNP
Democrat/NNP
's/POS
proposal/NN
,/,
which/WDT
is/VBZ
expected/VBN
today/NN
,/,
is/VBZ
described/VBN
by/IN
government/NN
sources/NNS
and/CC
lobbyists/NNS
as/RB
significantly/RB
weaker/JJR
than/IN
the/DT
Bush/NNP
administration/NN
's/POS
plan/NN
to/TO
cut/VB
utility/NN
emissions/NNS
that/WDT
lead/VBP
to/TO
acid/JJ
rain/NN
./.
The/DT
administration/NN
's/POS
plan/NN
could/MD
cost/VB
utilities/NNS
,/,
mainly/RB
those/DT
that/WDT
use/VBP
coal/NN
,/,
up/RB
to/TO
$/$
4/CD
billion/CD
a/DT
year/NN
./.
The/DT
proposal/NN
comes/VBZ
as/IN
a/DT
surprise/NN
even/RB
to/TO
administration/NN
officials/NNS
and/CC
temporarily/RB
throws/VBZ
into/IN
chaos/NN
the/DT
House/NNP
's/POS
work/NN
on/IN
clean-air/JJ
legislation/NN
./.
As/IN
chairman/NN
of/IN
the/DT
House/NNP
Energy/NNP
and/CC
Commerce/NNP
Committee/NNP
,/,
Mr./NNP
Dingell/NNP
has/VBZ
almost/RB
single-handed/JJ
control/NN
over/IN
clean-air/JJ
legislation/NN
./.
People/NNS
close/JJ
to/TO
the/DT
utility/NN
industry/NN
said/VBD
Mr./NNP
Dingell/NNP
's/POS
proposal/NN
appears/VBZ
to/TO
guarantee/VB
only/RB
an/DT
estimated/VBN
seven-million-ton/JJ
cut/NN
in/IN
annual/JJ
sulfur-dioxide/NN
emissions/NNS
that/WDT
lead/VBP
to/TO
acid/NN
rain/NN
,/,
though/IN
additional/JJ
cuts/NNS
could/MD
be/VB
ordered/VBN
later/JJ
./.
Mr./NNP
Bush/NNP
's/POS
legislative/JJ
package/NN
promises/VBZ
to/TO
cut/VB
emissions/NNS
by/IN
10/CD
million/CD
tons/NNS
--/:
basically/RB
in/IN
half/DT
--/:
by/IN
the/DT
year/NN
2000/CD
./.
Although/IN
final/JJ
details/NNS
were/VBD
n't/RB
available/JJ
,/,
sources/NNS
said/VBD
the/DT
Dingell/NNP
plan/NN
would/MD
abandon/VB
the/DT
president/NN
's/POS
proposal/NN
for/IN
a/DT
cap/NN
on/IN
utilities/NNS
'/POS
sulfur-dioxide/NN
emissions/NNS
./.
That/DT
proposal/NN
had/VBD
been/VBN
hailed/VBN
by/IN
environmentalists/NNS
but/CC
despised/VBN
by/IN
utilities/NNS
because/IN
they/PRP
feared/VBD
it/PRP
would/MD
limit/VB
their/PRP$
growth/NN
./.
It/PRP
also/RB
would/MD
junk/VB
an/DT
innovative/JJ
market-based/JJ
system/NN
for/IN
trading/VBG
emissions/NNS
credits/NNS
among/IN
polluters/NNS
./.
In/IN
addition/NN
,/,
it/PRP
is/VBZ
believed/VBN
to/TO
offer/VB
a/DT
cost-sharing/JJ
mechanism/NN
that/WDT
would/MD
help/VB
subsidize/VB
the/DT
clean-up/JJ
costs/NNS
for/IN
the/DT
dirtiest/JJS
coal-fired/JJ
utilities/NNS
in/IN
the/DT
country/NN
,/,
sparing/VBG
their/PRP$
customers/NNS
from/IN
exorbitant/JJ
jumps/NNS
in/IN
their/PRP$
electric/JJ
bills/NNS
./.
The/DT
administration/NN
,/,
sticking/VBG
to/TO
its/PRP$
vow/NN
of/IN
avoiding/VBG
tax/NN
increases/NNS
,/,
has/VBZ
staunchly/RB
opposed/VBN
cost-sharing/NN
./.
Mr./NNP
Dingell/NNP
's/POS
staff/NN
was/VBD
expected/VBN
to/TO
present/VB
its/PRP$
acid-rain/NN
alternative/NN
to/TO
other/JJ
committee/NN
members/NNS
,/,
apparently/RB
in/IN
an/DT
attempt/NN
to/TO
appease/VB
Midwestern/JJ
lawmakers/NNS
from/IN
high-polluting/JJ
states/NNS
who/WP
insist/VBP
on/IN
cost-sharing/NN
./.
It/PRP
is/VBZ
n't/RB
clear/JJ
,/,
however/RB
,/,
whether/IN
support/NN
for/IN
the/DT
proposal/NN
will/MD
be/VB
broad/JJ
enough/RB
to/TO
pose/VB
a/DT
serious/JJ
challenge/NN
to/TO
the/DT
White/NNP
House/NNP
's/POS
acid-rain/NN
plan/NN
./.
While/IN
the/DT
new/JJ
proposal/NN
might/MD
appeal/VB
to/TO
the/DT
dirtiest/JJS
utilities/NNS
,/,
it/PRP
might/MD
not/RB
win/VB
the/DT
support/NN
of/IN
utilities/NNS
,/,
many/JJ
in/IN
the/DT
West/NN
,/,
that/WDT
already/RB
have/VBP
added/VBN
expensive/JJ
cleanup/NN
equipment/NN
or/CC
burn/VBP
cleaner-burning/JJ
fuels/NNS
./.
Lawmakers/NNS
representing/VBG
some/DT
of/IN
the/DT
cleaner/JJR
utilities/NNS
have/VBP
been/VBN
quietly/RB
working/VBG
with/IN
the/DT
White/NNP
House/NNP
to/TO
devise/VB
ways/NNS
to/TO
tinker/VB
with/IN
the/DT
administration/NN
bill/NN
to/TO
address/VB
their/PRP$
acid-rain/NN
concerns/NNS
./.
American/NNP
City/NNP
Business/NNP
Journals/NNPS
Inc./NNP
said/VBD
its/PRP$
president/NN
,/,
Michael/NNP
K./NNP
Russell/NNP
,/,
will/MD
resign/VB
rather/RB
than/IN
relocate/NN
to/TO
new/JJ
headquarters/NNS
in/IN
Charlotte/NNP
,/,
N.C/NNP
./.
Mr./NNP
Russell/NNP
,/,
who/WP
co-founded/VBD
the/DT
Kansas/NNP
City/NNP
,/,
Mo.-based/JJ
local/JJ
business/NN
publications/NNS
concern/NN
here/RB
,/,
said/VBD
he/PRP
would/MD
have/VB
a/DT
five-year/JJ
consulting/NN
agreement/NN
with/IN
the/DT
company/NN
,/,
which/WDT
recently/RB
underwent/VBD
an/DT
ownership/NN
change/NN
./.
Earlier/RBR
this/DT
year/NN
Shaw/NNP
Publishing/NNP
Inc./NNP
,/,
Charlotte/NNP
,/,
acquired/VBD
30/CD
%/NN
of/IN
American/NNP
City/NNP
and/CC
has/VBZ
an/DT
agreement/NN
to/TO
acquire/VB
a/DT
further/JJ
25/CD
%/NN
from/IN
E.W./NNP
Scripps/NNP
Co./NNP
next/JJ
year/NN
./.
Ray/NNP
Shaw/NNP
,/,
chairman/NN
of/IN
American/NNP
City/NNP
,/,
said/VBD
he/PRP
would/MD
assume/VB
Mr./NNP
Russell/NNP
's/POS
responsibilities/NNS
if/IN
a/DT
successor/NN
is/VBZ
n't/RB
found/VBN
this/DT
month/NN
./.
A/DT
nickname/NN
for/IN
measures/NNS
to/TO
stop/VB
the/DT
market/NN
from/IN
plunging/VBG
too/RB
far/RB
too/RB
fast/RB
./.
Several/JJ
moves/NNS
were/VBD
taken/VBN
following/VBG
the/DT
October/NNP
1987/CD
crash/NN
to/TO
coordinate/VB
--/:
and/CC
sometimes/RB
deliberately/RB
disconnect/VB
--/:
the/DT
stock/NN
and/CC
futures/NNS
markets/NNS
in/IN
times/NNS
of/IN
heightened/VBN
volatility/NN
./.
On/IN
the/DT
Big/NNP
Board/NNP
,/,
a/DT
``/``
side/NN
car/NN
''/''
is/VBZ
put/VBN
into/IN
effect/NN
when/WRB
the/DT
S&P/NNP
futures/NNS
rise/VBP
or/CC
fall/VBP
12/CD
points/NNS
./.
The/DT
side/NN
car/NN
routes/VBZ
program/NN
trades/NNS
into/IN
a/DT
special/JJ
computer/NN
file/NN
that/WDT
scans/VBZ
for/IN
imbalances/NNS
of/IN
buy/NN
and/CC
sell/NN
orders/NNS
./.
On/IN
the/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
,/,
S&P/NNP
500/CD
futures/NNS
are/VBP
not/RB
allowed/VBN
to/TO
fall/VB
further/JJ
than/IN
12/CD
points/NNS
from/IN
the/DT
previous/JJ
day/NN
's/POS
close/NN
for/IN
half/PDT
an/DT
hour/NN
./.
If/IN
,/,
when/WRB
trading/NN
resumes/VBZ
,/,
the/DT
S&P/NNP
futures/NNS
fall/VBP
30/CD
points/NNS
from/IN
the/DT
previous/JJ
day/NN
's/POS
close/NN
,/,
a/DT
one-hour/JJ
trading/NN
halt/NN
takes/VBZ
effect/NN
./.
Also/RB
,/,
the/DT
reforms/NNS
allow/VBP
the/DT
Big/NNP
Board/NNP
to/TO
halt/VB
trading/NN
for/IN
one/CD
hour/NN
if/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
falls/VBZ
250/CD
points/NNS
,/,
and/CC
for/IN
two/CD
more/JJR
hours/NNS
if/IN
the/DT
Dow/NNP
slides/VBZ
an/DT
additional/JJ
150/CD
points/NNS
on/IN
the/DT
same/JJ
day/NN
./.
DOT/NNP
System/NNP
--/:
The/DT
``/``
Designated/NNP
Order/NNP
Turnaround/NNP
''/''
System/NNP
was/VBD
launched/VBN
by/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
in/IN
March/NNP
1976/CD
,/,
to/TO
offer/VB
automatic/JJ
,/,
high-speed/JJ
order/NN
processing/NN
./.
A/DT
faster/JJR
version/NN
,/,
the/DT
SuperDot/NNP
,/,
was/VBD
launched/VBN
in/IN
1984/CD
./.
Used/VBN
by/IN
program/NN
traders/NNS
and/CC
others/NNS
to/TO
zip/VB
orders/NNS
into/IN
the/DT
exchange/NN
,/,
SuperDot/NNP
handles/VBZ
about/IN
80/CD
%/NN
of/IN
all/DT
orders/NNS
entered/VBN
at/IN
the/DT
exchange/NN
./.
Futures/NNPS
Contracts/NNPS
--/:
Obligations/NNS
to/TO
buy/VB
(/(
for/IN
those/DT
who/WP
have/VBP
purchased/VBN
a/DT
contract/NN
those/DT
who/WP
sold/VBD
one/CD
a/DT
quantity/NN
of/IN
the/DT
underlying/JJ
commodity/NN
or/CC
financial/JJ
instrument/NN
at/IN
the/DT
agreed-upon/JJ
price/NN
by/IN
a/DT
certain/JJ
date/NN
./.
Most/JJS
contracts/NNS
are/VBP
simply/RB
nullified/VBN
by/IN
an/DT
opposite/JJ
trade/NN
before/IN
they/PRP
come/VBP
due/JJ
./.
Indexing/NN
--/:
Many/JJ
investors/NNS
,/,
mainly/RB
institutions/NNS
,/,
follow/VBP
an/DT
investment/NN
strategy/NN
of/IN
buying/VBG
and/CC
holding/VBG
a/DT
mix/NN
of/IN
stocks/NNS
to/TO
match/VB
the/DT
performance/NN
of/IN
a/DT
broad/JJ
stock-market/NN
barometer/NN
such/JJ
as/IN
the/DT
S&P/NNP
500/CD
./.
Many/JJ
institutional/JJ
index/NN
funds/NNS
are/VBP
active/JJ
program/NN
traders/NNS
,/,
swapping/VBG
their/PRP$
stocks/NNS
for/IN
futures/NNS
when/WRB
profitable/JJ
to/TO
do/VB
so/RB
./.
Program/NN
trading/NN
--/:
A/DT
wide/JJ
range/NN
of/IN
computer-assisted/JJ
portfolio/NN
trading/NN
strategies/NNS
involving/VBG
the/DT
simultaneous/JJ
purchase/NN
or/CC
sale/NN
of/IN
15/CD
or/CC
more/JJR
stocks/NNS
./.
Quant/NN
--/:
Generally/RB
,/,
any/DT
Wall/NNP
Street/NNP
analyst/NN
who/WP
employs/VBZ
quantitive/JJ
research/NN
techniques/NNS
./.
The/DT
newest/JJS
breed/NN
,/,
also/RB
called/VBN
``/``
rocket/NN
scientists/NNS
''/''
because/IN
of/IN
their/PRP$
backgrounds/NNS
in/IN
physics/NN
and/CC
mathematics/NN
,/,
devise/VBP
the/DT
complex/NN
hedging/NN
and/CC
trading/NN
strategies/NNS
that/WDT
are/VBP
popularly/RB
known/VBN
as/IN
program/NN
trading/NN
./.
Stock-index/NN
arbitrage/NN
--/:
Buying/VBG
or/CC
selling/VBG
baskets/NNS
of/IN
stocks/NNS
while/IN
at/IN
the/DT
same/JJ
time/NN
executing/VBG
offsetting/VBG
trades/NNS
in/IN
stock-index/NN
futures/NNS
or/CC
options/NNS
./.
Traders/NNS
profit/VBP
by/IN
trying/VBG
to/TO
capture/VB
fleeting/JJ
price/NN
discrepancies/NNS
between/IN
stocks/NNS
and/CC
the/DT
index/NN
futures/NNS
or/CC
options/NNS
./.
If/IN
stocks/NNS
are/VBP
temporarily/RB
``/``
cheaper/JJR
''/''
than/IN
futures/NNS
,/,
for/IN
example/NN
,/,
an/DT
arbitrager/NN
will/MD
buy/VB
stocks/NNS
and/CC
sell/VB
futures/NNS
./.
Stock-index/NN
futures/NNS
--/:
Contracts/NNS
to/TO
buy/VB
or/CC
sell/VB
the/DT
cash/NN
value/NN
of/IN
a/DT
stock/NN
index/NN
by/IN
a/DT
certain/JJ
date/NN
./.
The/DT
cash/NN
value/NN
is/VBZ
determined/VBN
by/IN
multiplying/VBG
the/DT
index/NN
number/NN
by/IN
a/DT
specified/VBN
amount/NN
./.
The/DT
most/RBS
common/JJ
program-trading/JJ
vehicles/NNS
are/VBP
futures/NNS
contracts/NNS
on/IN
Standard/NNP
&/CC
poor/NNP
's/POS
500-stock/JJ
index/NN
the/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
the/DT
Major/NNP
Market/NNP
Index/NNP
,/,
a/DT
20-stock/JJ
index/NN
that/WDT
mimics/VBZ
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
the/DT
chicago/NNP
Board/NNP
of/IN
Trade/NNP
the/DT
S&P/NNP
100/CD
options/NNS
the/DT
Chicago/NNP
Board/NNP
Options/NNPS
Exchange/NNP
,/,
and/CC
based/VBN
on/IN
100/CD
stocks/NNS
selected/VBN
from/IN
the/DT
S&P/NNP
500/CD
Stock-index/NN
options/NNS
--/:
Options/NNS
give/VBP
holders/NNS
the/DT
right/NN
,/,
but/CC
not/RB
the/DT
obligation/NN
,/,
to/TO
buy/VB
(/(
a/DT
call/NN
a/DT
put/NN
)/)
a/DT
specified/VBN
amount/NN
of/IN
an/DT
underlying/VBG
investment/NN
by/IN
a/DT
certin/NN
date/NN
at/IN
a/DT
preset/JJ
price/NN
,/,
known/VBN
as/IN
the/DT
strike/NN
price/NN
./.
For/IN
stock/NN
indexes/NNS
,/,
the/DT
underlying/VBG
investment/NN
may/MD
be/VB
a/DT
stock-index/NN
futures/NNS
contract/NN
or/CC
the/DT
cash/NN
value/NN
of/IN
a/DT
stock/NN
index/NN
./.
For/IN
example/NN
,/,
there/EX
are/VBP
options/NNS
on/IN
the/DT
S&P/NNP
500/CD
futures/NNS
contract/NN
and/CC
on/IN
the/DT
S&P/NNP
100/CD
index/NN
./.
Uptick/NN
--/:
An/DT
expression/NN
signifying/VBG
that/IN
a/DT
transaction/NN
in/IN
a/DT
listed/VBN
security/NN
occurred/VBD
at/IN
a/DT
higher/JJR
price/NN
than/IN
the/DT
previous/JJ
transaction/NN
in/IN
that/DT
security/NN
./.
story/NN
:/:
``/``
Balance/NNP
of/IN
Power/NNP
:/:
Program-Trading/JJ
War/NN
Masks/VBZ
Deeper/JJR
Battle/NN
For/IN
Market/NN
Supremacy/NN
--/:
`/``
Old/JJ
Guard/NN
'/''
Seizes/VBZ
Offensive/NN
,/,
But/CC
Rivals/NNS
Are/VBP
Bigger/JJR
,/,
Richer/JJR
and/CC
High-Tech/JJ
--/:
Civil/JJ
War/NN
at/IN
the/DT
Big/JJ
Board/NN
''/''
--/:
WSJ/NNP
Nov./NNP
2/CD
,/,
1989/CD
)/)
New/NNP
York/NNP
financier/NN
Saul/NNP
Steinberg/NNP
sought/VBD
federal/JJ
permission/NN
to/TO
buy/VB
more/JJR
than/IN
15/CD
%/NN
of/IN
United/NNP
Airlines/NNPS
'/POS
parent/NN
,/,
UAL/NNP
Corp./NNP
,/,
saying/VBG
he/PRP
might/MD
seek/VB
control/NN
of/IN
the/DT
nation/NN
's/POS
second-largest/JJ
airline/NN
./.
Although/IN
takeover/NN
experts/NNS
said/VBD
they/PRP
doubted/VBD
Mr./NNP
Steinberg/NNP
will/MD
make/VB
a/DT
bid/NN
by/IN
himself/PRP
,/,
the/DT
application/NN
by/IN
his/PRP$
Reliance/NNP
Group/NNP
Holdings/NNPS
Inc./NNP
could/MD
signal/VB
his/PRP$
interest/NN
in/IN
helping/VBG
revive/VB
a/DT
failed/VBN
labor-management/JJ
bid/NN
./.
Such/PDT
an/DT
application/NN
for/IN
federal/JJ
antitrust/JJ
clearance/NN
is/VBZ
necessary/JJ
for/IN
any/DT
investor/NN
that/WDT
might/MD
seek/VB
control/NN
./.
But/CC
some/DT
investors/NNS
have/VBP
used/VBN
such/JJ
filings/NNS
to/TO
boost/VB
the/DT
value/NN
of/IN
their/PRP$
stock/NN
holdings/NNS
,/,
which/WDT
--/:
without/IN
buying/VBG
more/JJR
stock/NN
--/:
they/PRP
then/RB
sold/VBD
./.
Takeover/NN
stock/NN
traders/NNS
were/VBD
puzzled/VBN
by/IN
the/DT
Reliance/NNP
filing/NN
and/CC
cautioned/VBD
that/IN
it/PRP
does/VBZ
n't/RB
mean/VB
Mr./NNP
Steinberg/NNP
will/MD
definitely/RB
seek/VB
control/NN
./.
``/``
Maybe/RB
he/PRP
just/RB
wants/VBZ
to/TO
make/VB
something/NN
happen/VB
,/,
''/''
said/VBD
one/CD
takeover/NN
expert/NN
./.
One/CD
investment/NN
banker/NN
said/VBD
Mr./NNP
Steinberg/NNP
may/MD
be/VB
trying/VBG
to/TO
position/VB
himself/PRP
as/IN
a/DT
friendly/JJ
investor/NN
who/WP
could/MD
help/VB
UAL/NNP
Chairman/NNP
Stephen/NNP
Wolf/NNP
revive/VB
a/DT
failed/VBN
labor-management/NN
bid/NN
./.
Mr./NNP
Steinberg/NNP
,/,
he/PRP
suggested/VBD
,/,
could/MD
replace/VB
British/NNP
Airways/NNPS
PLC/NNP
,/,
which/WDT
has/VBZ
withdrawn/VBN
from/IN
the/DT
buy-out/NN
group/NN
./.
Reliance/NNP
had/VBD
already/RB
bought/VBN
and/CC
sold/VBN
UAL/NNP
stock/NN
at/IN
a/DT
big/JJ
profit/NN
without/IN
making/VBG
an/DT
antitrust/JJ
filing/NN
before/IN
the/DT
collapse/NN
Oct./NNP
13/CD
of/IN
the/DT
$/$
6.79/CD
billion/CD
,/,
$/$
300-a-share/JJ
labor-management/NN
buy-out/NN
./.
Reliance/NNP
acquired/VBD
a/DT
7/CD
%/NN
UAL/NNP
stake/NN
early/RB
this/DT
year/NN
at/IN
an/DT
average/JJ
cost/NN
of/IN
$/$
110/CD
a/DT
share/NN
,/,
and/CC
reduced/VBD
its/PRP$
stake/NN
to/TO
4.7/CD
%/NN
after/IN
UAL/NNP
accepted/VBD
the/DT
bid/NN
at/IN
prices/NNS
higher/JJR
than/IN
$/$
282/CD
a/DT
share/NN
./.
Market/NN
sources/NNS
said/VBD
Reliance/NNP
has/VBZ
already/RB
sold/VBN
its/PRP$
entire/JJ
UAL/NNP
stake/NN
,/,
and/CC
thus/RB
would/MD
n't/RB
have/VB
any/DT
reason/NN
to/TO
file/VB
the/DT
application/NN
simply/RB
to/TO
boost/VB
the/DT
value/NN
of/IN
its/PRP$
stock/NN
./.
But/CC
the/DT
exact/JJ
amount/NN
of/IN
Reliance/NNP
's/POS
current/JJ
holding/NN
has/VBZ
n't/RB
been/VBN
formally/RB
disclosed/VBN
./.
The/DT
filing/NN
adds/VBZ
a/DT
new/JJ
twist/NN
to/TO
market/NN
speculation/NN
that/IN
Coniston/NNP
Partners/NNPS
,/,
a/DT
New/NNP
York/NNP
money/NN
manager/NN
,/,
has/VBZ
bought/VBN
more/JJR
than/IN
5/CD
%/NN
of/IN
UAL/NNP
stock/NN
and/CC
may/MD
challenge/VB
the/DT
UAL/NNP
board/NN
's/POS
decision/NN
last/JJ
week/NN
to/TO
remain/VB
independent/JJ
./.
Speculation/NN
about/IN
Coniston/NNP
has/VBZ
caused/VBN
the/DT
stock/NN
to/TO
rebound/VB
from/IN
a/DT
low/JJ
of/IN
$/$
145/CD
./.
UAL/NNP
's/POS
announcement/NN
came/VBD
after/IN
the/DT
market/NN
closed/VBD
yesterday/NN
./.
In/IN
composite/JJ
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
trading/NN
,/,
the/DT
shares/NNS
closed/VBD
at/IN
$/$
177/CD
,/,
up/RB
$/$
1.50/CD
./.
UAL/NNP
would/MD
n't/RB
elaborate/VB
on/IN
a/DT
statement/NN
that/IN
it/PRP
had/VBD
been/VBN
notified/VBN
of/IN
the/DT
filing/NN
by/IN
Reliance/NNP
./.
Reliance/NNP
confirmed/VBD
the/DT
filing/NN
but/CC
would/MD
n't/RB
elaborate/VB
./.
Some/DT
takeover/NN
experts/NNS
were/VBD
skeptical/JJ
,/,
saying/VBG
it/PRP
was/VBD
possible/JJ
that/IN
Mr./NNP
Steinberg/NNP
made/VBD
the/DT
filing/NN
only/RB
to/TO
help/VB
boost/VB
the/DT
value/NN
of/IN
any/DT
remaining/VBG
Reliance/NNP
stake/NN
in/IN
UAL/NNP
./.
Mr./NNP
Steinberg/NNP
is/VBZ
thought/VBN
to/TO
be/VB
on/IN
friendly/JJ
terms/NNS
with/IN
UAL/NNP
's/POS
Mr./NNP
Wolf/NNP
./.
The/DT
investor/NN
was/VBD
instrumental/JJ
in/IN
tapping/VBG
Mr./NNP
Wolf/NNP
to/TO
run/VB
the/DT
air/NN
cargo/NN
unit/NN
of/IN
Tiger/NNP
International/NNP
Inc/NNP
./.
Mr./NNP
Wolf/NNP
's/POS
success/NN
in/IN
that/DT
job/NN
helped/VBD
him/PRP
land/VB
the/DT
top/JJ
job/NN
with/IN
UAL/NNP
in/IN
December/NNP
1987/CD
./.
But/CC
any/DT
potential/JJ
acquirer/NN
must/MD
attempt/VB
to/TO
reach/VB
some/DT
kind/NN
of/IN
accord/NN
with/IN
the/DT
company/NN
's/POS
employees/NNS
,/,
primarily/RB
its/PRP$
pilots/NNS
and/CC
the/DT
powerful/JJ
machinists/NNS
'/POS
union/NN
,/,
which/WDT
has/VBZ
opposed/VBN
a/DT
takeover/NN
./.
A.L./NNP
Williams/NNP
Corp./NNP
was/VBD
merged/VBN
into/IN
Primerica/NNP
Corp./NNP
,/,
New/NNP
York/NNP
,/,
after/IN
a/DT
special/JJ
meeting/NN
of/IN
Williams/NNP
shareholders/NNS
cleared/VBD
the/DT
transaction/NN
,/,
the/DT
companies/NNS
said/VBD
./.
Primerica/NNP
,/,
which/WDT
had/VBD
owned/VBN
nearly/RB
70/CD
%/NN
of/IN
Williams/NNP
,/,
will/MD
pay/VB
about/IN
16.7/CD
million/CD
shares/NNS
,/,
currently/RB
valued/VBN
at/IN
almost/RB
$/$
472/CD
million/CD
,/,
for/IN
the/DT
rest/NN
of/IN
Williams/NNP
./.
The/DT
financial-services/NNS
company/NN
will/MD
pay/VB
0.82/CD
share/NN
for/IN
each/DT
Williams/NNP
share/NN
./.
Williams/NNP
shares/NNS
,/,
which/WDT
were/VBD
to/TO
be/VB
delisted/VBN
from/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
after/IN
the/DT
close/NN
of/IN
composite/JJ
trading/NN
yesterday/NN
,/,
closed/VBD
at/IN
$/$
23.25/CD
,/,
off/RB
12.5/CD
cents/NNS
./.
Primerica/NNP
closed/VBD
at/IN
$/$
28.25/CD
,/,
down/RB
50/CD
cents/NNS
./.
Williams/NNP
,/,
Duluth/NNP
,/,
Ga./NNP
,/,
is/VBZ
an/DT
insurance/NN
and/CC
financial-services/NNS
holding/VBG
company/NN
./.
Its/PRP$
subsidiaries/NNS
'/POS
services/NNS
are/VBP
marketed/VBN
by/IN
closely/RB
held/VBN
A.L./NNP
Williams/NNP
&/CC
Associates/NNPS
./.
Primerica/NNP
,/,
as/IN
expected/VBN
,/,
also/RB
acquired/VBD
certain/JJ
assets/NNS
of/IN
the/DT
agency/NN
and/CC
assumed/VBD
certain/JJ
of/IN
its/PRP$
liabilities/NNS
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Intelogic/NNP
Trace/NNP
Inc./NNP
,/,
San/NNP
Antonio/NNP
,/,
Texas/NNP
,/,
said/VBD
it/PRP
bought/VBD
2.7/CD
million/CD
shares/NNS
,/,
or/CC
about/IN
18/CD
%/NN
,/,
of/IN
its/PRP$
common/JJ
stock/NN
from/IN
an/DT
unaffiliated/JJ
shareholder/NN
for/IN
$/$
3.625/CD
a/DT
share/NN
,/,
or/CC
$/$
9.9/CD
million/CD
./.
The/DT
move/NN
boosts/VBZ
Intelogic/NNP
Chairman/NNP
Asher/NNP
Edelman/NNP
's/POS
stake/NN
to/TO
20/CD
%/NN
from/IN
16.2/CD
%/NN
and/CC
may/MD
help/VB
prevent/VB
Martin/NNP
Ackerman/NNP
from/IN
making/VBG
a/DT
run/NN
at/IN
the/DT
computer-services/NNS
concern/NN
./.
Mr./NNP
Ackerman/NNP
already/RB
is/VBZ
seeking/VBG
to/TO
oust/VB
Mr./NNP
Edelman/NNP
as/IN
chairman/NN
of/IN
Datapoint/NNP
Corp./NNP
,/,
an/DT
Intelogic/NNP
affiliate/NN
./.
The/DT
action/NN
followed/VBN
by/IN
one/CD
day/NN
an/DT
Intelogic/NNP
announcement/NN
that/IN
it/PRP
will/MD
retain/VB
an/DT
investment/NN
banker/NN
to/TO
explore/VB
alternatives/NNS
``/``
to/TO
maximize/VB
shareholder/NN
value/NN
,/,
''/''
including/VBG
the/DT
possible/JJ
sale/NN
of/IN
the/DT
company/NN
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
Intelogic/NNP
shares/NNS
rose/VBD
37.5/CD
cents/NNS
to/TO
close/VB
at/IN
$/$
2.75/CD
./.
Mr./NNP
Edelman/NNP
declined/VBD
to/TO
specify/VB
what/WP
prompted/VBD
the/DT
recent/JJ
moves/NNS
,/,
saying/VBG
they/PRP
are/VBP
meant/VBN
only/RB
to/TO
benefit/VB
shareholders/NNS
when/WRB
``/``
the/DT
company/NN
is/VBZ
on/IN
a/DT
roll/NN
./.
''/''
He/PRP
added/VBD
,/,
``/``
This/DT
has/VBZ
nothing/NN
to/TO
do/VB
with/IN
Marty/NNP
Ackerman/NNP
and/CC
it/PRP
is/VBZ
not/RB
designed/VBN
,/,
particularly/RB
,/,
to/TO
take/VB
the/DT
company/NN
private/JJ
./.
''/''
But/CC
Mr./NNP
Ackerman/NNP
said/VBD
the/DT
buy-back/NN
,/,
and/CC
the/DT
above-market/JJ
price/NN
paid/VBN
,/,
prove/VBP
that/IN
Mr./NNP
Edelman/NNP
is/VBZ
running/VBG
scared/JJ
./.
Dow/NNP
Jones/NNP
&/CC
Co./NNP
said/VBD
it/PRP
extended/VBD
its/PRP$
$/$
18-a-share/JJ
offer/NN
for/IN
Telerate/NNP
Inc./NNP
common/JJ
stock/NN
until/IN
5/CD
p.m./NN
EST/NNP
Nov./NNP
9/CD
./.
The/DT
offer/NN
,/,
valued/VBN
at/IN
about/IN
$/$
576/CD
million/CD
for/IN
the/DT
33/CD
%/NN
of/IN
Telerate/NNP
that/IN
Dow/NNP
Jones/NNP
does/VBZ
n't/RB
already/RB
own/VBN
,/,
had/VBD
been/VBN
set/VBN
to/TO
expire/VB
Nov./NNP
6/CD
./.
Dow/NNP
Jones/NNP
,/,
which/WDT
owns/VBZ
about/IN
64/CD
million/CD
of/IN
Telerate/NNP
's/POS
95/CD
million/CD
common/JJ
shares/NNS
outstanding/JJ
,/,
said/VBD
that/IN
about/IN
24,000/CD
shares/NNS
have/VBP
been/VBN
tendered/VBN
under/IN
its/PRP$
offer/NN
./.
Telerate/NNP
's/POS
two/CD
independent/JJ
directors/NNS
have/VBP
rejected/VBN
the/DT
offer/NN
as/IN
inadequate/JJ
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Telerate/NNP
shares/NNS
closed/VBD
at/IN
$/$
19.50/CD
,/,
up/IN
12.5/CD
cents/NNS
./.
Telerate/NNP
provides/VBZ
an/DT
electronic/JJ
financial/JJ
information/NN
network/NN
./.
Dow/NNP
Jones/NNP
publishes/VBZ
The/NNP
Wall/NNP
Street/NNP
Journal/NNP
,/,
Barron/NNP
's/POS
magazine/NN
,/,
and/CC
community/NN
newspapers/NNS
and/CC
operates/VBZ
financial/JJ
news/NN
services/NNS
and/CC
computer/NN
data/NNS
bases/NNS
./.
Rockwell/NNP
International/NNP
Corp./NNP
reported/VBD
flat/JJ
operating/NN
earnings/NNS
for/IN
the/DT
fourth/JJ
quarter/NN
ended/VBD
Sept./NNP
30/CD
./.
The/DT
aerospace/NN
,/,
automotive/JJ
supply/NN
,/,
electronics/NNS
and/CC
printing-press/NN
concern/NN
also/RB
indicated/VBD
that/IN
the/DT
first/JJ
half/DT
of/IN
fiscal/JJ
1990/CD
could/MD
be/VB
rough/JJ
./.
In/IN
an/DT
interview/NN
,/,
Donald/NNP
Beall/NNP
,/,
chairman/NN
,/,
said/VBD
first-half/JJ
profit/NN
certainly/RB
would/MD
trail/VB
the/DT
past/JJ
year/NN
's/POS
,/,
primarily/RB
because/IN
of/IN
weakness/NN
in/IN
the/DT
heavy-truck/NN
and/CC
passenger-car/NN
markets/NNS
./.
Still/RB
,/,
he/PRP
added/VBD
,/,
if/IN
the/DT
industrial/JJ
sector/NN
remains/VBZ
relatively/RB
stable/JJ
,/,
Rockwell/NNP
should/MD
be/VB
able/JJ
to/TO
recover/VB
in/IN
the/DT
second/JJ
half/DT
and/CC
about/IN
equal/JJ
fiscal/JJ
1989/CD
's/POS
operating/NN
profit/NN
of/IN
$/$
630.9/CD
million/CD
./.
For/IN
fiscal/JJ
1989/CD
's/POS
fourth/JJ
quarter/NN
,/,
Rockwell/NNP
's/POS
net/JJ
income/NN
totaled/VBD
$/$
126.1/CD
million/CD
,/,
or/CC
50/CD
cents/NNS
a/DT
share/NN
./.
That/DT
compares/VBZ
with/IN
operating/VBG
earnings/NNS
of/IN
$/$
132.9/CD
million/CD
,/,
or/CC
49/CD
cents/NNS
a/DT
share/NN
,/,
the/DT
year/NN
earlier/JJR
./.
The/DT
prior-year/JJ
period/NN
includes/VBZ
a/DT
one-time/JJ
favorable/JJ
tax/NN
adjustment/NN
on/IN
the/DT
B-1B/JJ
bomber/NN
program/NN
and/CC
another/DT
gain/NN
from/IN
sale/NN
of/IN
the/DT
industrial/JJ
sewing-machine/NN
business/NN
,/,
which/WDT
made/VBD
net/JJ
$/$
185.9/CD
million/CD
,/,
or/CC
70/CD
cents/NNS
a/DT
share/NN
./.
Sales/NNS
rose/VBD
4/CD
%/NN
to/TO
$/$
3.28/CD
billion/CD
from/IN
$/$
3.16/CD
billion/CD
./.
Mr./NNP
Beall/NNP
said/VBD
that/IN
he/PRP
was/VBD
generally/RB
pleased/VBN
with/IN
the/DT
latest/JJS
numbers/NNS
and/CC
cited/VBD
a/DT
particularly/RB
strong/JJ
showing/NN
by/IN
the/DT
company/NN
's/POS
electronics/NNS
segment/NN
./.
Overall/JJ
,/,
pretax/JJ
electronics/NNS
earnings/NNS
soared/VBD
12/CD
%/NN
to/TO
$/$
107.9/CD
million/CD
from/IN
$/$
96.4/CD
million/CD
./.
All/DT
four/CD
areas/NNS
had/VBD
higher/JJR
revenue/NN
for/IN
the/DT
three/CD
months/NNS
ended/VBD
Sept./NNP
30/CD
./.
For/IN
the/DT
year/NN
,/,
electronics/NNS
emerged/VBD
as/IN
Rockwell/NNP
's/POS
largest/JJS
sector/NN
in/IN
terms/NNS
of/IN
sales/NNS
and/CC
earnings/NNS
,/,
muscling/VBG
out/IN
aerospace/NN
for/IN
the/DT
first/JJ
time/NN
./.
The/DT
graphics/NNS
business/NN
,/,
which/WDT
also/RB
was/VBD
singled/VBN
out/IN
by/IN
the/DT
chairman/NN
as/IN
a/DT
positive/JJ
,/,
saw/VBD
its/PRP$
operating/NN
earnings/NNS
for/IN
the/DT
quarter/NN
jump/VB
79/CD
%/NN
to/TO
$/$
42.1/CD
million/CD
from/IN
$/$
23.5/CD
million/CD
./.
For/IN
the/DT
year/NN
,/,
bolstered/VBN
by/IN
the/DT
introduction/NN
of/IN
the/DT
Colorliner/NNP
newspaper-printing/NN
press/NN
,/,
graphics/NNS
earnings/NNS
almost/RB
doubled/VBD
./.
Aerospace/NN
earnings/NNS
sagged/VBD
37/CD
%/NN
for/IN
the/DT
quarter/NN
and/CC
15/CD
%/NN
for/IN
the/DT
year/NN
,/,
largely/RB
due/JJ
to/TO
lower/JJR
B-1B/NN
program/NN
profit/NN
;/:
the/DT
last/JJ
of/IN
the/DT
bombers/NNS
rolled/VBD
out/IN
in/IN
April/NNP
1988/CD
./.
That/DT
was/VBD
partially/RB
offset/VBN
by/IN
the/DT
resumption/NN
of/IN
space/NN
shuttle/NN
flights/NNS
and/CC
increased/VBN
demand/NN
for/IN
expendable/JJ
launch-vehicle/NN
engines/NNS
./.
The/DT
company/NN
also/RB
took/VBD
hits/NNS
in/IN
the/DT
fourth/JJ
quarters/NNS
of/IN
1989/CD
and/CC
1988/CD
on/IN
a/DT
fixed-price/JJ
weapons-modernization/JJ
development/NN
program/NN
--/:
probably/RB
the/DT
C-130/NN
gunship/NN
,/,
according/VBG
to/TO
analysts/NNS
./.
For/IN
fiscal/JJ
1989/CD
,/,
the/DT
company/NN
posted/VBD
net/NN
of/IN
$/$
734.9/CD
million/CD
,/,
or/CC
$/$
2.87/CD
a/DT
share/NN
,/,
down/IN
from/IN
$/$
811.9/CD
million/CD
,/,
or/CC
$/$
3.04/CD
a/DT
share/NN
,/,
in/IN
fiscal/JJ
1988/CD
./.
Excluding/VBG
one-time/JJ
additions/NNS
to/TO
profit/NN
in/IN
each/DT
year/NN
,/,
earnings/NNS
per/IN
share/NN
were/VBD
$/$
2.47/CD
,/,
up/RB
7.4/CD
%/NN
from/IN
$/$
2.30/CD
in/IN
fiscal/JJ
1988/CD
./.
Sales/NNS
for/IN
the/DT
year/NN
rose/VBD
5/CD
%/NN
to/TO
$/$
12.52/CD
billion/CD
from/IN
$/$
11.95/CD
billion/CD
in/IN
fiscal/JJ
1988/CD
./.
Dell/NNP
Computer/NNP
Corp./NNP
said/VBD
it/PRP
cut/VBD
prices/NNS
on/IN
several/JJ
of/IN
its/PRP$
personal/JJ
computer/NN
lines/NNS
by/IN
5/CD
%/NN
to/TO
17/CD
%/NN
./.
The/DT
Austin/NNP
,/,
Texas-based/JJ
company/NN
,/,
which/WDT
specializes/VBZ
in/IN
the/DT
direct/JJ
sale/NN
of/IN
personal/JJ
computers/NNS
and/CC
accessories/NNS
,/,
said/VBD
its/PRP$
price/NN
cuts/NNS
include/VBP
a/DT
$/$
100/CD
reduction/NN
on/IN
its/PRP$
System/NN
210/CD
computer/NN
with/IN
512/CD
kilobytes/NNS
of/IN
memory/NN
,/,
a/DT
40-megabyte/JJ
hard/JJ
disk/NN
and/CC
a/DT
color/NN
monitor/NN
./.
That/DT
package/NN
now/RB
sells/VBZ
for/IN
about/IN
$/$
2,099/CD
./.
A/DT
computer/NN
using/VBG
the/DT
more-advanced/JJ
Intel/NNP
Corp./NNP
386/CD
microprocessor/NN
,/,
with/IN
four/CD
megabytes/NNS
of/IN
memory/NN
and/CC
a/DT
100-megabyte/JJ
hard/JJ
disk/NN
now/RB
sells/VBZ
for/IN
$/$
5,699/CD
,/,
down/RB
from/IN
$/$
6,799/CD
./.
Personal/JJ
computer/NN
prices/NNS
for/IN
models/NNS
using/VBG
the/DT
Intel/NNP
286/CD
and/CC
386/CD
microprocessors/NNS
,/,
which/WDT
the/DT
Dell/NNP
models/NNS
use/VBP
,/,
generally/RB
have/VBP
been/VBN
coming/VBG
down/IN
as/IN
chip/NN
prices/NNS
have/VBP
fallen/VBN
./.
World/NN
sugar/NN
futures/NNS
prices/NNS
soared/VBD
on/IN
rumors/NNS
that/IN
Brazil/NNP
,/,
a/DT
major/JJ
grower/NN
and/CC
exporter/NN
,/,
might/MD
not/RB
ship/VB
sugar/NN
this/DT
crop/NN
year/NN
and/CC
next/JJ
./.
Prices/NNS
also/RB
were/VBD
boosted/VBN
by/IN
another/DT
rumor/NN
that/IN
Mexico/NNP
,/,
usually/RB
a/DT
large/JJ
producer/NN
and/CC
exporter/NN
,/,
might/MD
have/VB
to/TO
buy/VB
a/DT
large/JJ
quantity/NN
of/IN
sugar/NN
./.
Although/IN
traders/NNS
rushed/VBD
to/TO
buy/VB
futures/NNS
contracts/NNS
,/,
many/JJ
remained/VBD
skeptical/JJ
about/IN
the/DT
Brazilian/JJ
development/NN
,/,
which/WDT
could/MD
n't/RB
be/VB
confirmed/VBN
,/,
analysts/NNS
said/VBD
./.
The/DT
March/NNP
and/CC
May/NNP
contracts/NNS
rose/VBD
to/TO
fresh/JJ
life-of-contract/JJ
highs/NNS
of/IN
14.54/CD
cents/NNS
and/CC
14.28/CD
cents/NNS
at/IN
their/PRP$
best/JJS
levels/NNS
of/IN
the/DT
day/NN
./.
The/DT
March/NNP
delivery/NN
,/,
which/WDT
has/VBZ
no/DT
limits/NNS
,/,
settled/VBD
at/IN
14.53/CD
cents/NNS
,/,
up/RB
0.56/CD
cent/NN
a/DT
pound/NN
./.
The/DT
May/NNP
contract/NN
,/,
which/WDT
also/RB
is/VBZ
without/IN
restraints/NNS
,/,
ended/VBD
with/IN
a/DT
gain/NN
of/IN
0.54/CD
cent/NN
to/TO
14.26/CD
cents/NNS
./.
The/DT
July/NNP
delivery/NN
rose/VBD
its/PRP$
daily/JJ
permissible/JJ
limit/NN
of/IN
0.50/CD
cent/NN
a/DT
pound/NN
to/TO
14.00/CD
cents/NNS
,/,
while/IN
other/JJ
contract/NN
months/NNS
showed/VBD
near-limit/JJ
advances/NNS
./.
According/VBG
to/TO
reports/NNS
carried/VBN
by/IN
various/JJ
news/NN
services/NNS
,/,
the/DT
Brazilian/JJ
government/NN
told/VBD
its/PRP$
sugar/NN
producers/NNS
that/IN
they/PRP
wo/MD
n't/RB
be/VB
allowed/VBN
to/TO
export/VB
sugar/NN
during/IN
the/DT
current/JJ
1989-90/CD
season/NN
,/,
which/WDT
began/VBD
May/NNP
1/CD
,/,
and/CC
the/DT
1990-91/CD
season/NN
so/IN
that/IN
it/PRP
can/MD
be/VB
used/VBN
to/TO
produce/VB
alcohol/NN
for/IN
automobile/NN
fuel/NN
./.
One/CD
analyst/NN
,/,
Arthur/NNP
Stevenson/NNP
,/,
of/IN
Prudential-Bache/NNP
Securities/NNPS
,/,
New/NNP
York/NNP
,/,
estimated/VBD
that/IN
65/CD
%/NN
or/CC
more/JJR
of/IN
Brazil/NNP
's/POS
newly/RB
made/VBN
automobiles/NNS
run/VBP
on/IN
alcohol/NN
and/CC
ca/MD
n't/RB
use/VB
gasoline/NN
./.
``/``
This/DT
is/VBZ
a/DT
demand/NN
that/WDT
must/MD
be/VB
met/VBN
,/,
regardless/RB
of/IN
the/DT
price/NN
of/IN
oil/NN
,/,
''/''
said/VBD
Mr./NNP
Stevenson/NNP
./.
Brazil/NNP
is/VBZ
the/DT
third-largest/JJ
producer/NN
and/CC
the/DT
fifth-largest/JJ
exporter/NN
of/IN
sugar/NN
in/IN
the/DT
world/NN
./.
A/DT
shift/NN
to/TO
producing/VBG
more/JJR
alcohol/NN
and/CC
less/JJR
sugar/NN
had/VBD
been/VBN
expected/VBN
,/,
but/CC
the/DT
latest/JJS
news/NN
,/,
if/IN
true/JJ
,/,
indicates/VBZ
a/DT
more/RBR
drastic/JJ
shift/NN
than/IN
had/VBD
been/VBN
anticipated/VBN
./.
During/IN
the/DT
current/JJ
crop/NN
year/NN
,/,
Brazil/NNP
was/VBD
expected/VBN
to/TO
produce/VB
6.9/CD
million/CD
tons/NNS
of/IN
sugar/NN
,/,
a/DT
drop/NN
from/IN
8.1/CD
million/CD
tons/NNS
in/IN
1988-89/CD
./.
Its/PRP$
1989-90/CD
exports/NNS
were/VBD
expected/VBN
to/TO
total/VB
645,000/CD
tons/NNS
in/IN
contrast/NN
to/TO
shipments/NNS
of/IN
1.5/CD
million/CD
tons/NNS
in/IN
``/``
It/PRP
is/VBZ
these/DT
645,000/CD
tons/NNS
that/WDT
are/VBP
in/IN
question/NN
for/IN
this/DT
crop/NN
year/NN
,/,
''/''
explained/VBD
Judith/NNP
Ganes/NNP
,/,
analyst/NN
for/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
,/,
New/NNP
York/NNP
./.
``/``
Producers/NNS
were/VBD
granted/VBN
the/DT
right/RB
earlier/RB
this/DT
year/NN
to/TO
ship/VB
sugar/NN
and/CC
the/DT
export/NN
licenses/NNS
were/VBD
expected/VBN
to/TO
have/VB
begun/VBN
to/TO
be/VB
issued/VBN
''/''
yesterday/NN
./.
As/IN
a/DT
result/NN
,/,
Ms./NNP
Ganes/NNP
said/VBD
,/,
it/PRP
is/VBZ
believed/VBN
that/IN
little/JJ
or/CC
no/DT
sugar/NN
from/IN
the/DT
1989-90/CD
crop/NN
has/VBZ
been/VBN
shipped/VBN
yet/RB
,/,
even/RB
though/IN
the/DT
crop/NN
year/NN
is/VBZ
six/CD
months/NNS
old/JJ
./.
More/JJR
than/IN
a/DT
half/NN
of/IN
all/DT
sugar/NN
produced/VBN
in/IN
Brazil/NNP
goes/VBZ
for/IN
alcohol/NN
production/NN
,/,
according/VBG
to/TO
Ms./NNP
Ganes/NNP
./.
Also/RB
,/,
there/EX
has/VBZ
been/VBN
a/DT
switch/NN
in/IN
the/DT
past/JJ
decade/NN
to/TO
planting/NN
of/IN
orange/JJ
trees/NNS
in/IN
areas/NNS
that/WDT
were/VBD
previously/RB
used/VBN
for/IN
cane/NN
,/,
and/CC
this/DT
change/NN
is/VBZ
being/VBG
felt/VBN
now/RB
,/,
she/PRP
said/VBD
./.
Most/RBS
important/JJ
,/,
Ms./NNP
Ganes/NNP
noted/VBD
,/,
``/``
Brazilian/JJ
officials/NNS
said/VBD
that/IN
no/DT
decision/NN
has/VBZ
as/RB
yet/RB
been/VBN
made/VBN
on/IN
the/DT
suspension/NN
of/IN
exports/NNS
./.
''/''
Thomas/NNP
Oxnard/NNP
,/,
sugar/NN
analyst/NN
for/IN
PaineWebber/NNP
in/IN
Hackensack/NNP
,/,
N.J./NNP
,/,
said/VBD
:/:
``/``
I/PRP
am/VBP
highly/RB
skeptical/JJ
that/IN
Brazil/NNP
will/MD
curtail/VB
sugar/NN
exports/NNS
,/,
particularly/RB
with/IN
the/DT
price/NN
of/IN
sugar/NN
at/IN
over/IN
14/CD
cents/NNS
a/DT
pound/NN
./.
''/''
Above/IN
all/DT
,/,
Mr./NNP
Oxnard/NNP
noted/VBD
,/,
the/DT
situation/NN
is/VBZ
extremely/RB
confused/VBN
./.
``/``
Professional/JJ
sugar/NN
people/NNS
here/RB
who/WP
have/VBP
strong/JJ
contacts/NNS
with/IN
the/DT
Brazilian/JJ
sugar/NN
industry/NN
have/VBP
been/VBN
unable/JJ
to/TO
confirm/VB
the/DT
reports/NNS
or/CC
get/VB
enough/JJ
information/NN
to/TO
clarify/VB
the/DT
situation/NN
,/,
''/''
he/PRP
said/VBD
./.
``/``
It/PRP
's/VBZ
the/DT
type/NN
of/IN
nervous/JJ
atmosphere/NN
in/IN
which/WDT
a/DT
report/NN
can/MD
be/VB
put/VBN
out/IN
,/,
such/JJ
as/IN
the/DT
one/CD
saying/VBG
exports/NNS
will/MD
be/VB
suspended/VBN
,/,
and/CC
no/DT
one/NN
can/MD
confirm/VB
it/PRP
./.
''/''
Mr./NNP
Oxnard/NNP
observed/VBD
that/IN
the/DT
situation/NN
in/IN
Brazil/NNP
is/VBZ
also/RB
very/RB
complicated/VBN
./.
On/IN
the/DT
one/CD
hand/NN
,/,
Brazil/NNP
started/VBD
an/DT
ethanol/NN
program/NN
about/IN
15/CD
years/NNS
ago/IN
to/TO
fuel/VB
a/DT
huge/JJ
portion/NN
of/IN
its/PRP$
national/JJ
fleet/NN
of/IN
cars/NNS
and/CC
is/VBZ
now/RB
committed/VBN
to/TO
this/DT
program/NN
./.
``/``
It/PRP
has/VBZ
to/TO
weigh/VB
,/,
on/IN
the/DT
other/JJ
hand/NN
,/,
the/DT
relatively/RB
high/JJ
price/NN
of/IN
sugar/NN
it/PRP
can/MD
earn/VB
on/IN
the/DT
export/NN
market/NN
in/IN
making/VBG
decisions/NNS
as/IN
to/TO
whether/IN
to/TO
produce/VB
sugar/NN
or/CC
alcohol/NN
,/,
''/''
Mr./NNP
Oxnard/NNP
said/VBD
./.
Mexico/NNP
,/,
which/WDT
is/VBZ
normally/RB
a/DT
sugar/NN
exporter/NN
,/,
has/VBZ
had/VBN
production/NN
problems/NNS
in/IN
the/DT
past/JJ
two/CD
years/NNS
,/,
analysts/NNS
said/VBD
./.
Last/JJ
year/NN
,/,
it/PRP
had/VBD
to/TO
buy/VB
sugar/NN
on/IN
the/DT
world/NN
market/NN
to/TO
meet/VB
export/NN
commitments/NNS
,/,
they/PRP
noted/VBD
./.
This/DT
year/NN
it/PRP
is/VBZ
expected/VBN
to/TO
be/VB
a/DT
net/JJ
importer/NN
and/CC
is/VBZ
said/VBN
to/TO
be/VB
seeking/VBG
to/TO
buy/VB
about/IN
200,000/CD
tons/NNS
of/IN
sugar/NN
to/TO
meet/VB
internal/JJ
needs/NNS
,/,
analysts/NNS
said/VBD
./.
In/IN
other/JJ
commodity/NN
markets/NNS
yesterday/NN
:/:
ENERGY/NNP
:/:
Petroleum/NNP
futures/NNS
were/VBD
generally/RB
higher/JJR
with/IN
heating/NN
oil/NN
leading/VBG
the/DT
way/NN
./.
On/IN
the/DT
New/NNP
York/NNP
Mercantile/NNP
Exchange/NNP
,/,
heating/NN
oil/NN
for/IN
December/NNP
delivery/NN
increased/VBD
1.25/CD
cents/NNS
to/TO
settle/VB
at/IN
60.36/CD
cents/NNS
a/DT
gallon/NN
./.
Gasoline/NN
futures/NNS
were/VBD
mixed/VBN
to/TO
unchanged/JJ
./.
But/CC
the/DT
strength/NN
in/IN
heating/NN
oil/NN
helped/VBD
push/VB
up/IN
crude/JJ
oil/NN
./.
West/NNP
Texas/NNP
Intermediate/NNP
crude/JJ
for/IN
December/NNP
delivery/NN
rose/VBD
13/CD
cents/NNS
a/DT
barrel/NN
to/TO
settle/VB
at/IN
$/$
20.07/CD
./.
The/DT
firmness/NN
in/IN
heating/NN
oil/NN
was/VBD
attributed/VBN
to/TO
colder/JJR
weather/NN
in/IN
parts/NNS
of/IN
the/DT
U.S./NNP
and/CC
to/TO
the/DT
latest/JJS
weekly/JJ
report/NN
by/IN
the/DT
American/NNP
Petroleum/NNP
Institute/NNP
,/,
which/WDT
showed/VBD
a/DT
decline/NN
in/IN
inventories/NNS
of/IN
the/DT
fuel/NN
./.
GRAINS/NNPS
AND/NNP
SOYBEANS/NNPS
:/:
Prices/NNS
closed/VBD
mostly/RB
higher/JJR
in/IN
relatively/RB
light/JJ
trading/NN
as/IN
farmers/NNS
continued/VBD
to/TO
withhold/VB
their/PRP$
crops/NNS
from/IN
the/DT
marketplace/NN
in/IN
the/DT
hope/NN
of/IN
higher/JJR
prices/NNS
to/TO
come/VB
./.
Trading/NN
was/VBD
muted/VBN
in/IN
part/NN
because/IN
of/IN
the/DT
observance/NN
of/IN
All/NNP
Saints/NNP
'/POS
Day/NNP
across/IN
much/JJ
of/IN
Europe/NNP
./.
Continued/VBN
export/NN
demand/NN
also/RB
supported/VBD
prices/NNS
./.
As/IN
an/DT
indicator/NN
of/IN
the/DT
tight/JJ
grain/NN
supply/NN
situation/NN
in/IN
the/DT
U.S./NNP
,/,
market/NN
analysts/NNS
said/VBD
that/IN
late/JJ
Tuesday/NNP
the/DT
Chinese/JJ
government/NN
,/,
which/WDT
often/RB
buys/VBZ
U.S./NNP
grains/NNS
in/IN
quantity/NN
,/,
turned/VBD
instead/RB
to/TO
Britain/NNP
to/TO
buy/VB
500,000/CD
metric/JJ
tons/NNS
of/IN
wheat/NN
./.
Traders/NNS
said/VBD
prices/NNS
also/RB
were/VBD
supported/VBN
by/IN
widespread/JJ
rumors/NNS
that/IN
the/DT
Soviet/NNP
Union/NNP
is/VBZ
on/IN
the/DT
verge/NN
of/IN
receiving/VBG
most/RBS
favored/JJ
nation/NN
status/NN
from/IN
the/DT
U.S/NNP
./.
That/DT
designation/NN
would/MD
,/,
among/IN
other/JJ
things/NNS
,/,
provide/VB
more/RBR
generous/JJ
credit/NN
terms/NNS
under/IN
which/WDT
the/DT
Soviets/NNPS
could/MD
purchase/VB
grain/NN
./.
The/DT
Soviets/NNPS
are/VBP
widely/RB
believed/VBN
to/TO
need/VB
additional/JJ
supplies/NNS
,/,
despite/IN
running/VBG
up/IN
record/JJ
one-month/JJ
purchases/NNS
of/IN
310/CD
million/CD
bushels/NNS
of/IN
corn/NN
in/IN
October/NNP
./.
COPPER/NNP
:/:
Futures/NNS
prices/NNS
rose/VBD
,/,
extending/VBG
Tuesday/NNP
's/POS
gains/NNS
./.
The/DT
December/NNP
contract/NN
advanced/VBD
2.50/CD
cents/NNS
a/DT
pound/NN
to/TO
$/$
1.1650/CD
./.
Buying/VBG
for/IN
the/DT
most/JJS
part/NN
carried/VBD
over/IN
from/IN
the/DT
previous/JJ
session/NN
,/,
and/CC
traders/NNS
apparently/RB
ignored/VBD
reports/NNS
that/IN
a/DT
Chilean/JJ
mine/JJ
strike/NN
may/MD
have/VB
ended/VBN
almost/RB
before/IN
it/PRP
began/VBD
,/,
an/DT
analyst/NN
said/VBD
./.
According/VBG
to/TO
news/NN
service/NN
reports/NNS
,/,
most/JJS
workers/NNS
at/IN
the/DT
Disputado/NNP
mines/NNS
owned/VBN
by/IN
Exxon/NNP
Corp./NNP
agreed/VBD
to/TO
a/DT
new/JJ
two-year/JJ
wage/NN
contract/NN
that/WDT
includes/VBZ
a/DT
5/CD
%/NN
increase/NN
and/CC
other/JJ
benefits/NNS
./.
However/RB
,/,
some/DT
workers/NNS
have/VBP
n't/RB
yet/RB
accepted/VBN
the/DT
new/JJ
contract/NN
and/CC
are/VBP
continuing/VBG
negotiations/NNS
,/,
the/DT
analyst/NN
said/VBD
./.
Separately/RB
,/,
Reuter/NNP
reported/VBD
that/IN
the/DT
Papua-New/NNP
Guinea/NNP
government/NN
urged/VBD
its/PRP$
Parliament/NNP
to/TO
extend/VB
a/DT
state/NN
of/IN
emergency/NN
in/IN
copper-rich/JJ
Bougainville/NNP
Island/NNP
for/IN
two/CD
months/NNS
./.
The/DT
Bougainville/NNP
copper/NN
mine/NN
has/VBZ
been/VBN
inoperative/JJ
since/IN
May/NNP
15/CD
because/IN
of/IN
attacks/NNS
by/IN
native/JJ
landowners/NNS
who/WP
want/VBP
Bougainville/NNP
to/TO
secede/VB
from/IN
Papua-New/NNP
Guinea/NNP
./.
The/DT
parent/NN
of/IN
Younkers/NNP
,/,
after/IN
failing/VBG
to/TO
find/VB
a/DT
buyer/NN
for/IN
the/DT
chain/NN
of/IN
Midwestern/JJ
department/NN
stores/NNS
,/,
said/VBD
it/PRP
will/MD
sell/VB
a/DT
stake/NN
in/IN
the/DT
chain/NN
to/TO
management/NN
and/CC
take/VB
other/JJ
steps/NNS
to/TO
reduce/VB
its/PRP$
investment/NN
in/IN
retailing/NN
./.
Equitable/NNP
of/IN
Iowa/NNP
Cos./NNP
,/,
Des/NNP
Moines/NNP
,/,
had/VBD
been/VBN
seeking/VBG
a/DT
buyer/NN
for/IN
the/DT
36-store/JJ
Younkers/NNP
chain/NN
since/IN
June/NNP
,/,
when/WRB
it/PRP
announced/VBD
its/PRP$
intention/NN
to/TO
free/VB
up/IN
capital/NN
to/TO
expand/VB
its/PRP$
insurance/NN
business/NN
./.
But/CC
Equitable/NNP
said/VBD
it/PRP
was/VBD
unable/JJ
to/TO
find/VB
a/DT
buyer/NN
willing/JJ
to/TO
pay/VB
what/WP
it/PRP
considers/VBZ
``/``
fair/JJ
value/NN
''/''
for/IN
Younkers/NNP
because/IN
of/IN
recent/JJ
turmoil/NN
in/IN
the/DT
bond/NN
and/CC
stock/NN
markets/NNS
and/CC
in/IN
retailing/NN
./.
Younkers/NNS
rang/VBD
up/IN
sales/NNS
in/IN
1988/CD
of/IN
$/$
313/CD
million/CD
./.
It/PRP
operates/VBZ
stores/NNS
mostly/RB
in/IN
Iowa/NNP
and/CC
Nebraska/NNP
./.
Younkers/NNP
management/NN
is/VBZ
likely/JJ
to/TO
buy/VB
a/DT
10/CD
%/NN
to/TO
20/CD
%/NN
interest/NN
in/IN
the/DT
chain/NN
in/IN
January/NNP
,/,
said/VBD
Fred/NNP
S./NNP
Hubbell/NNP
,/,
Equitable/NNP
's/POS
president/NN
and/CC
chief/NN
executive/NN
officer/NN
./.
He/PRP
said/VBD
Equitable/NNP
hopes/VBZ
to/TO
eventually/RB
reduce/VB
its/PRP$
stake/NN
in/IN
Younkers/NNP
to/TO
less/JJR
than/IN
50/CD
%/NN
./.
Tony/NNP
Lama/NNP
Co./NNP
said/VBD
that/IN
Equus/NNP
Investment/NNP
II/NNP
Limited/NNP
Partnership/NNP
has/VBZ
proposed/VBN
changing/VBG
the/DT
offer/NN
for/IN
the/DT
company/NN
to/TO
$/$
13.65/CD
in/IN
cash/NN
and/CC
stock/NN
from/IN
an/DT
all-cash/JJ
transaction/NN
./.
Under/IN
terms/NNS
of/IN
the/DT
new/JJ
proposal/NN
,/,
Equus/NNP
,/,
managed/VBN
by/IN
Equus/NNP
Capital/NNP
Corp./NNP
,/,
Houston/NNP
,/,
would/MD
pay/VB
$/$
12/CD
cash/NN
and/CC
one/CD
new/JJ
preferred/JJ
share/NN
with/IN
a/DT
liquidation/NN
preference/NN
of/IN
$/$
1.65/CD
a/DT
share/NN
for/IN
each/DT
of/IN
Tony/NNP
Lama/NNP
's/POS
2.1/CD
million/CD
shares/NNS
outstanding/JJ
./.
Previously/RB
,/,
it/PRP
offered/VBD
$/$
13.65/CD
a/DT
share/NN
in/IN
cash/NN
,/,
or/CC
$/$
29/CD
million/CD
./.
The/DT
El/NNP
Paso/NNP
,/,
Texas/NNP
,/,
maker/NN
of/IN
Western/JJ
boots/NNS
and/CC
leather/NN
accessories/NNS
said/VBD
the/DT
preferred/VBN
stock/NN
would/MD
accrue/VB
dividends/NNS
at/IN
a/DT
12/CD
%/NN
rate/NN
,/,
but/CC
would/MD
n't/RB
be/VB
paid/VBN
for/IN
the/DT
first/JJ
two/CD
years/NNS
./.
The/DT
stock/NN
would/MD
be/VB
redeemed/VBN
in/IN
five/CD
years/NNS
,/,
subject/JJ
to/TO
terms/NNS
of/IN
the/DT
surviving/VBG
company/NN
's/POS
debt/NN
./.
Neither/DT
Equus/NNP
nor/CC
Tony/NNP
Lama/NNP
gave/VBD
a/DT
reason/NN
for/IN
the/DT
changed/VBN
offer/NN
and/CC
Tony/NNP
Lama/NNP
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
However/RB
,/,
Tony/NNP
Lama/NNP
said/VBD
it/PRP
would/MD
promptly/RB
submit/VB
the/DT
offer/NN
to/TO
a/DT
special/JJ
committee/NN
of/IN
the/DT
company/NN
's/POS
board/NN
./.
Reuters/NNP
Holdings/NNP
PLC/NNP
said/VBD
Michael/NNP
Reupke/NNP
resigned/VBD
as/IN
general/JJ
manager/NN
to/TO
pursue/VB
unspecified/JJ
interests/NNS
,/,
a/DT
move/NN
the/DT
news/NN
organization/NN
termed/VBD
an/DT
``/``
amicable/JJ
separation/NN
./.
''/''
Mr./NNP
Reupke/NNP
,/,
52/CD
years/NNS
old/JJ
and/CC
a/DT
27-year/JJ
Reuters/NNP
veteran/NN
,/,
had/VBD
been/VBN
the/DT
information-services/NNS
company/NN
's/POS
general/JJ
manager/NN
for/IN
only/RB
six/CD
months/NNS
./.
His/PRP$
appointment/NN
to/TO
that/DT
post/NN
,/,
which/WDT
has/VBZ
senior/JJ
administrative/JJ
,/,
staff/NN
and/CC
policy/NN
responsibilities/NNS
,/,
followed/VBD
a/DT
several-year/JJ
tenure/NN
as/IN
Reuters/NNP
's/POS
editor/NN
in/IN
chief/NN
./.
No/DT
successor/NN
was/VBD
named/VBN
,/,
and/CC
Mr./NNP
Reupke/NNP
's/POS
duties/NNS
will/MD
be/VB
split/VBN
among/IN
three/CD
other/JJ
senior/JJ
Reuters/NNP
executives/NNS
,/,
the/DT
company/NN
said/VBD
./.
In/IN
a/DT
telephone/NN
interview/NN
,/,
Mr./NNP
Reupke/NNP
said/VBD
his/PRP$
departure/NN
was/VBD
for/IN
``/``
personal/JJ
reasons/NNS
,/,
''/''
which/WDT
he/PRP
declined/VBD
to/TO
specify/VB
./.
``/``
There/EX
is/VBZ
no/DT
business/NN
reason/NN
for/IN
my/PRP$
departure/NN
,/,
''/''
nor/CC
any/DT
disagreement/NN
over/IN
policy/NN
,/,
he/PRP
added/VBD
./.
He/PRP
also/RB
rejected/VBD
reports/NNS
that/IN
his/PRP$
departure/NN
stemmed/VBD
from/IN
disappointment/NN
the/DT
general/JJ
manager/NN
's/POS
post/NN
had/VBD
n't/RB
also/RB
led/VBN
to/TO
a/DT
board/NN
directorship/NN
at/IN
the/DT
London-based/JJ
news/NN
organization/NN
./.
Mr./NNP
Reupke/NNP
was/VBD
one/CD
of/IN
three/CD
executives/NNS
on/IN
Reuters/NNP
's/POS
eight-person/JJ
executive/NN
committee/NN
who/WP
did/VBD
n't/RB
also/RB
serve/VB
on/IN
the/DT
company/NN
's/POS
board/NN
of/IN
directors/NNS
./.
``/``
If/IN
I/PRP
were/VBD
choosing/VBG
the/DT
people/NNS
of/IN
tomorrow/NN
,/,
I/PRP
would/MD
have/VB
chosen/VBN
the/DT
people/NNS
who/WP
are/VBP
now/RB
on/IN
the/DT
board/NN
,/,
''/''
he/PRP
said/VBD
./.
A/DT
Reuters/NNP
spokesman/NN
said/VBD
the/DT
departure/NN
reflects/VBZ
``/``
no/DT
change/NN
in/IN
strategy/NN
or/CC
profits/NNS
./.
''/''
Mark/NNP
Shepperd/NNP
,/,
an/DT
analyst/NN
at/IN
UBS/NNP
Phillips/NNP
&/CC
Drew/NNP
in/IN
London/NNP
,/,
said/VBD
,/,
``/``
I/PRP
suspect/VBP
(/(
the/DT
departure/NN
the/DT
company/NN
./.
I/PRP
would/MD
be/VB
very/RB
surprised/VBN
if/IN
his/PRP$
departure/NN
signals/VBZ
any/DT
change/NN
in/IN
strategy/NN
or/CC
change/NN
in/IN
profit/NN
expectations/NNS
./.
''/''
On/IN
London/NNP
's/POS
Stock/NNP
Exchange/NNP
,/,
Reuters/NNP
shares/NNS
rose/VBD
five/CD
pence/NN
to/TO
913/CD
pence/NN
$/$
14.43/CD
In/IN
the/DT
U.S./NNP
over-the-counter/JJ
market/NN
,/,
American/JJ
depositary/NN
shares/NNS
for/IN
Reuters/NNP
,/,
each/DT
representing/VBG
three/CD
shares/NNS
in/IN
the/DT
London/NNP
market/NN
,/,
closed/VBD
unchanged/JJ
at/IN
$/$
43.875/CD
./.
The/DT
senior/NN
of/IN
the/DT
three/CD
executives/NNS
who/WP
will/MD
assume/VB
Mr./NNP
Reupke/NNP
's/POS
duties/NNS
is/VBZ
Nigel/NNP
Judah/NNP
,/,
58/CD
,/,
finance/NN
director/NN
and/CC
a/DT
Reuters/NNP
board/NN
director/NN
./.
Peter/NNP
Holland/NNP
,/,
45/CD
,/,
deputy/JJ
general/JJ
manager/NN
,/,
becomes/VBZ
director/NN
of/IN
corporate/JJ
affairs/NNS
./.
And/CC
Patrick/NNP
Mannix/NNP
,/,
46/CD
,/,
international/JJ
technical/JJ
manager/NN
,/,
becomes/VBZ
director/NN
of/IN
group/NN
quality/NN
programs/NNS
./.
DD/NNP
Acquisition/NNP
Corp./NNP
,/,
a/DT
partnership/NN
of/IN
Unicorp/NNP
Canada/NNP
Corp./NNP
's/POS
Kingsbridge/NNP
Capital/NNP
Group/NNP
and/CC
Cara/NNP
Operations/NNPS
Ltd./NNP
,/,
extended/VBD
to/TO
Nov./NNP
20/CD
its/PRP$
$/$
45-a-share/JJ
offer/NN
for/IN
all/DT
Dunkin'/NNP
Donuts/NNPS
Inc./NNP
shares/NNS
outstanding/JJ
./.
The/DT
offer/NN
,/,
which/WDT
was/VBD
due/JJ
to/TO
expire/VB
yesterday/NN
,/,
is/VBZ
conditional/JJ
on/IN
50.1/CD
%/NN
of/IN
Dunkin'/NNP
common/JJ
shares/NNS
,/,
on/IN
a/DT
fully/RB
diluted/VBN
basis/NN
,/,
being/VBG
tendered/VBN
and/CC
on/IN
the/DT
withdrawal/NN
of/IN
the/DT
company/NN
's/POS
poison/NN
pill/NN
rights/NNS
plan/NN
./.
DD/NNP
Acquisition/NNP
has/VBZ
launched/VBN
a/DT
suit/NN
in/IN
a/DT
Delaware/NNP
court/NN
seeking/VBG
the/DT
withdrawal/NN
of/IN
Dunkin/NNP
's/POS
poison/NN
pill/NN
rights/NNS
and/CC
employee/NN
stock/NN
ownership/NN
plans/NNS
,/,
which/WDT
it/PRP
claims/VBZ
were/VBD
put/VBN
in/IN
place/NN
to/TO
deter/VB
bidders/NNS
./.
DD/NNP
Acquisition/NNP
said/VBD
2.2/CD
million/CD
shares/NNS
,/,
or/CC
about/IN
38.5/CD
%/NN
of/IN
the/DT
shares/NNS
outstanding/JJ
,/,
have/VBP
been/VBN
tendered/VBN
under/IN
its/PRP$
offer/NN
./.
The/DT
partners/NNS
said/VBD
they/PRP
already/RB
hold/VBP
15/CD
%/NN
of/IN
all/DT
shares/NNS
outstanding/JJ
./.
Dunkin'/NNP
has/VBZ
set/VBN
Nov./NNP
10/CD
as/IN
the/DT
deadline/NN
for/IN
the/DT
receipt/NN
of/IN
any/DT
competing/VBG
bids/NNS
./.
DD/NNP
Acquisition/NNP
said/VBD
the/DT
extension/NN
is/VBZ
to/TO
allow/VB
this/DT
process/NN
to/TO
be/VB
completed/VBN
./.
Dunkin'/NNP
is/VBZ
based/VBN
in/IN
Randolph/NNP
,/,
Mass/NNP
./.
Cara/NNP
,/,
a/DT
food/NN
services/NNS
chain/NN
operator/NN
and/CC
Unicorp/NNP
,/,
a/DT
holding/VBG
company/NN
,/,
are/VBP
based/VBN
in/IN
Toronto/NNP
./.
Savin/NNP
Corp./NNP
reported/VBD
a/DT
third-quarter/NN
net/JJ
loss/NN
of/IN
$/$
35.2/CD
million/CD
,/,
or/CC
31/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
year-earlier/JJ
profit/NN
of/IN
$/$
3.8/CD
million/CD
,/,
or/CC
one/CD
cent/NN
a/DT
share/NN
./.
A/DT
spokesman/NN
for/IN
the/DT
Stamford/NNP
,/,
Conn.based/JJ
company/NN
said/VBD
operations/NNS
had/VBD
a/DT
loss/NN
of/IN
$/$
5.5/CD
million/CD
for/IN
the/DT
quarter/NN
;/:
in/IN
addition/NN
,/,
the/DT
loss/NN
was/VBD
magnified/VBN
by/IN
nonrecurring/VBG
charges/NNS
totaling/VBG
$/$
23.5/CD
million/CD
and/CC
$/$
8.2/CD
million/CD
in/IN
asset-valuation/NN
adjustments/NNS
that/IN
he/PRP
described/VBD
as/IN
``/``
unusual/JJ
./.
''/''
The/DT
charges/NNS
were/VBD
partly/RB
offset/VBN
by/IN
a/DT
$/$
2/CD
million/CD
gain/NN
on/IN
the/DT
sale/NN
of/IN
investments/NNS
of/IN
two/CD
joint/JJ
ventures/NNS
,/,
he/PRP
said/VBD
./.
Revenue/NN
declined/VBD
8/CD
%/NN
to/TO
$/$
85.7/CD
million/CD
,/,
from/IN
$/$
93.3/CD
million/CD
a/DT
year/NN
earlier/JJR
./.
Savin/NNP
cited/VBD
``/``
a/DT
general/JJ
softening/NN
in/IN
the/DT
demand/NN
for/IN
office/NN
products/NNS
in/IN
the/DT
market/NN
segments/NNS
in/IN
which/WDT
Savin/NNP
competes/VBZ
./.
''/''
Hadson/NNP
Corp./NNP
said/VBD
it/PRP
expects/VBZ
to/TO
report/VB
a/DT
third-quarter/NN
net/JJ
loss/NN
of/IN
$/$
17/CD
million/CD
to/TO
$/$
19/CD
million/CD
because/IN
of/IN
special/JJ
reserves/NNS
and/CC
continued/VBN
low/JJ
natural-gas/NN
prices/NNS
./.
The/DT
Oklahoma/NNP
City/NNP
energy/NN
and/CC
defense/NN
concern/NN
said/VBD
it/PRP
will/MD
record/VB
a/DT
$/$
7.5/CD
million/CD
reserve/NN
for/IN
its/PRP$
defense/NN
group/NN
,/,
including/VBG
a/DT
$/$
4.7/CD
million/CD
charge/NN
related/VBN
to/TO
problems/NNS
under/IN
a/DT
fixed-price/JJ
development/NN
contract/NN
and/CC
$/$
2.8/CD
million/CD
in/IN
overhead/JJ
costs/NNS
that/WDT
wo/MD
n't/RB
be/VB
reimbursed/VBN
./.
In/IN
addition/NN
,/,
Hadson/NNP
said/VBD
it/PRP
will/MD
write/VB
off/IN
about/IN
$/$
3.5/CD
million/CD
in/IN
costs/NNS
related/VBN
to/TO
international/JJ
exploration/NN
leases/NNS
where/WRB
exploration/NN
efforts/NNS
have/VBP
been/VBN
unsuccessful/JJ
./.
The/DT
company/NN
also/RB
cited/VBD
interest/NN
costs/NNS
and/CC
amortization/NN
of/IN
goodwill/NN
as/IN
factors/NNS
in/IN
the/DT
loss/NN
./.
A/DT
year/NN
earlier/JJR
,/,
net/JJ
income/NN
was/VBD
$/$
2.1/CD
million/CD
,/,
or/CC
six/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
169.9/CD
million/CD
./.
A/DT
lack/NN
of/IN
enthusiasm/NN
with/IN
the/DT
latest/JJS
economic/JJ
data/NNS
hampered/VBD
the/DT
stock/NN
market/NN
's/POS
bid/NN
to/TO
extend/VB
Tuesday/NNP
's/POS
sharp/JJ
gains/NNS
,/,
as/IN
prices/NNS
closed/VBD
slightly/RB
higher/JJR
in/IN
sluggish/JJ
trading/NN
./.
While/IN
renewed/VBN
optimism/NN
about/IN
the/DT
outlook/NN
for/IN
takeover/NN
activity/NN
boosted/VBD
several/JJ
so-called/JJ
deal/NN
stocks/NNS
,/,
traders/NNS
said/VBD
profit-taking/NN
weighed/VBD
on/IN
the/DT
market/NN
,/,
with/IN
blue-chips/NNS
bearing/VBG
the/DT
brunt/NN
of/IN
the/DT
selling/NN
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
,/,
which/WDT
had/VBD
jumped/VBN
41.60/CD
points/NNS
on/IN
Tuesday/NNP
,/,
drifted/VBD
on/IN
either/DT
side/NN
of/IN
its/PRP$
previous/JJ
close/NN
and/CC
finished/VBD
with/IN
a/DT
gain/NN
of/IN
just/RB
0.82/CD
at/IN
2645.90/CD
./.
Standard/NNP
&/CC
Poor/NNP
's/POS
500-Stock/NNP
Index/NNP
added/VBD
0.84/CD
to/TO
341.20/CD
;/:
the/DT
rise/NN
was/VBD
equivalent/JJ
to/TO
a/DT
gain/NN
of/IN
about/IN
six/CD
points/NNS
in/IN
the/DT
industrial/JJ
average/NN
./.
The/DT
Dow/NNP
Jones/NNP
Equity/NNP
Market/NNP
Index/NNP
gained/VBD
0.99/CD
to/TO
319.75/CD
and/CC
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
Composite/NNP
Index/NNP
went/VBD
up/IN
0.60/CD
to/TO
188.84/CD
./.
Advancing/VBG
stocks/NNS
led/VBD
decliners/NNS
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
by/IN
847/CD
to/TO
644/CD
./.
Big/NNP
Board/NNP
volume/NN
amounted/VBD
to/TO
154,240,000/CD
shares/NNS
,/,
down/IN
from/IN
176.1/CD
million/CD
Tuesday/NNP
./.
The/DT
October/NNP
survey/NN
of/IN
corporate/JJ
purchasing/VBG
managers/NNS
,/,
as/IN
expected/VBN
,/,
provided/VBN
evidence/NN
that/IN
economic/JJ
growth/NN
remains/VBZ
subdued/VBN
./.
An/DT
index/NN
of/IN
economic/JJ
activity/NN
drawn/VBN
from/IN
the/DT
survey/NN
stood/VBD
last/JJ
month/NN
at/IN
47.6/CD
%/NN
;/:
a/DT
reading/NN
above/IN
50/CD
%/NN
would/MD
have/VB
indicated/VBN
that/IN
the/DT
manufacturing/VBG
sector/NN
was/VBD
improving/VBG
./.
But/CC
with/IN
the/DT
index/NN
proving/VBG
somewhat/RB
better/JJR
than/IN
expected/VBN
and/CC
the/DT
widely/RB
anticipated/VBN
report/NN
on/IN
October/NNP
employment/NN
scheduled/VBN
to/TO
arrive/VB
tomorrow/NN
,/,
stock/NN
prices/NNS
firmed/VBD
only/RB
modestly/RB
in/IN
response/NN
to/TO
the/DT
report/NN
and/CC
then/RB
faltered/VBD
./.
``/``
This/DT
market/NN
's/VBZ
still/RB
going/VBG
through/IN
its/PRP$
pains/NNS
,/,
''/''
said/VBD
Philip/NNP
Puccio/NNP
,/,
head/NN
of/IN
equity/NN
trading/NN
at/IN
Prudential-Bache/NNP
Securities/NNPS
./.
``/``
The/DT
psychology/NN
is/VBZ
still/RB
:/:
`/``
We/PRP
want/VBP
(/(
stocks/NNS
they/PRP
do/VBP
n't/RB
carry/VB
we/PRP
're/VBP
going/VBG
to/TO
sell/VB
them/PRP
./.
'/''
''/''
Uncertainty/NN
about/IN
the/DT
prospects/NNS
for/IN
further/JJ
action/NN
to/TO
curtail/VB
stock-index/JJ
arbitrage/NN
,/,
a/DT
form/NN
of/IN
program/NN
trading/NN
blamed/VBN
for/IN
recent/JJ
volatility/NN
in/IN
the/DT
market/NN
,/,
also/RB
contributed/VBD
to/TO
its/PRP$
lack/NN
of/IN
direction/NN
,/,
Mr./NNP
Puccio/NNP
said/VBD
./.
Arbitrage-related/JJ
trading/NN
during/IN
the/DT
session/NN
was/VBD
confined/VBN
largely/RB
to/TO
a/DT
round/NN
of/IN
buy/NN
programs/NNS
near/IN
the/DT
close/NN
,/,
which/WDT
helped/VBD
offset/VB
the/DT
impact/NN
of/IN
profit-taking/NN
among/IN
blue/JJ
chips/NNS
./.
Trading/NN
is/VBZ
expected/VBN
to/TO
remain/VB
subdued/VBN
as/IN
the/DT
market/NN
awaits/VBZ
tomorrow/NN
's/POS
release/NN
of/IN
the/DT
jobs/NNS
data/NNS
with/IN
the/DT
hope/NN
that/IN
it/PRP
will/MD
point/VB
toward/IN
a/DT
decline/NN
in/IN
interest/NN
rates/NNS
./.
``/``
I/PRP
sense/VBP
that/IN
some/DT
people/NNS
are/VBP
reluctant/JJ
to/TO
stick/VB
their/PRP$
necks/NNS
out/IN
in/IN
any/DT
aggressive/JJ
way/NN
until/IN
after/IN
the/DT
figures/NNS
come/VBP
out/IN
,/,
''/''
said/VBD
Richard/NNP
Eakle/NNP
,/,
president/NN
of/IN
Eakle/NNP
Associates/NNPS
,/,
Fair/NNP
Haven/NNP
,/,
Campbell/NNP
Soup/NNP
jumped/VBD
3/CD
3\/8/CD
to/TO
47/CD
1\/8/CD
as/IN
the/DT
resignation/NN
of/IN
R./NNP
Gordon/NNP
McGovern/NNP
as/IN
president/NN
and/CC
chief/NN
executive/NN
officer/NN
sparked/VBD
a/DT
revival/NN
of/IN
rumors/NNS
that/IN
the/DT
company/NN
could/MD
become/VB
a/DT
takeover/NN
target/NN
./.
Prudential-Bache/NNP
Securities/NNPS
boosted/VBD
the/DT
stock/NN
's/POS
short-term/JJ
investment/NN
rating/NN
in/IN
response/NN
to/TO
the/DT
departure/NN
;/:
analyst/NN
John/NNP
McMillin/NNP
said/VBD
he/PRP
believes/VBZ
the/DT
company/NN
will/MD
turn/VB
to/TO
new/JJ
management/NN
``/``
that/DT
's/VBZ
more/RBR
financially/RB
oriented/VBN
./.
''/''
Other/JJ
rumored/VBN
takeover/NN
and/CC
restructuring/VBG
candidates/NNS
to/TO
attract/VB
buyers/NNS
included/VBD
Woolworth/NNP
,/,
which/WDT
went/VBD
up/RB
1/CD
3\/4/CD
to/TO
59/CD
1\/2/CD
;/:
Avon/NNP
Products/NNPS
,/,
up/RB
1/CD
3\/4/CD
to/TO
29/CD
1\/4/CD
;/:
Paramount/NNP
Communications/NNPS
,/,
up/RB
2/CD
to/TO
57/CD
7\/8/CD
,/,
and/CC
Ferro/NNP
,/,
up/RB
2/CD
5\/8/CD
to/TO
28/CD
3\/4/CD
./.
Upjohn/NNP
,/,
a/DT
rumored/VBN
target/NN
within/IN
the/DT
drug/NN
industry/NN
,/,
advanced/VBD
7\/8/CD
to/TO
38/CD
7\/8/CD
./.
The/DT
company/NN
said/VBD
it/PRP
plans/VBZ
a/DT
fourth-quarter/NN
charge/NN
,/,
which/WDT
it/PRP
did/VBD
n't/RB
specify/VB
,/,
for/IN
an/DT
early-retirement/JJ
program/NN
./.
AMR/NNP
climbed/VBD
1/CD
3\/4/CD
to/TO
73/CD
1\/8/CD
amid/IN
rumors/NNS
that/IN
New/NNP
York/NNP
developer/NN
Donald/NNP
Trump/NNP
was/VBD
seeking/VBG
financing/NN
to/TO
mount/VB
a/DT
new/JJ
,/,
lower/JJR
offer/NN
for/IN
the/DT
parent/NN
company/NN
of/IN
American/NNP
Airlines/NNPS
./.
Mr./NNP
Trump/NNP
withdrew/VBD
a/DT
$/$
120-a-share/JJ
bid/NN
last/JJ
month/NN
./.
UAL/NNP
rose/VBD
1/CD
1\/2/CD
to/TO
177/CD
./.
Drexel/NNP
Burnham/NNP
Lambert/NNP
analyst/NN
Michael/NNP
Derchin/NNP
said/VBD
he/PRP
sees/VBZ
a/DT
70/CD
%/NN
chance/NN
that/IN
the/DT
parent/NN
of/IN
United/NNP
Airlines/NNPS
,/,
the/DT
target/NN
of/IN
a/DT
failed/VBN
$/$
300-a-share/JJ
offer/NN
from/IN
a/DT
labor-management/NN
group/NN
,/,
will/MD
be/VB
acquired/VBN
or/CC
restructured/VBN
within/IN
six/CD
months/NNS
./.
Georgia/NNP
Gulf/NNP
added/VBD
1/CD
3\/4/CD
to/TO
51/CD
1\/4/CD
after/IN
NL/NNP
Industries/NNPS
,/,
controlled/VBN
by/IN
Dallas/NNP
investor/NN
Harold/NNP
Simmons/NNP
,/,
offered/VBD
to/TO
acquire/VB
the/DT
stock/NN
it/PRP
does/VBZ
n't/RB
already/RB
own/VB
for/IN
$/$
50/CD
a/DT
share/NN
./.
NL/NNP
,/,
which/WDT
closed/VBD
unchanged/JJ
at/IN
22/CD
3\/4/CD
,/,
has/VBZ
a/DT
stake/NN
of/IN
just/RB
under/IN
10/CD
%/NN
./.
Great/NNP
Northern/NNP
Nekoosa/NNP
,/,
which/WDT
surged/VBD
20/CD
1\/8/CD
Tuesday/NNP
after/IN
Georgia-Pacific/NNP
launched/VBD
a/DT
$/$
3.18/CD
billion/CD
offer/NN
for/IN
the/DT
company/NN
,/,
dropped/VBD
1/CD
3\/8/CD
to/TO
61/CD
1\/2/CD
in/IN
Big/NNP
Board/NNP
composite/NN
trading/NN
of/IN
5.1/CD
million/CD
shares/NNS
./.
Georgia-Pacific/NNP
,/,
which/WDT
went/VBD
down/IN
2/CD
1\/2/CD
Tuesday/NNP
,/,
lost/VBD
another/DT
1\/2/CD
to/TO
50/CD
3\/8/CD
./.
Other/JJ
paper/NN
and/CC
forest-products/NNS
stocks/NNS
closed/VBD
mixed/VBN
./.
Mead/NNP
rose/VBD
3\/4/CD
to/TO
39/CD
1\/2/CD
,/,
Federal/NNP
Paper/NNP
Board/NNP
added/VBD
1\/2/CD
to/TO
24/CD
3\/8/CD
and/CC
Scott/NNP
Paper/NNP
gained/VBD
1\/2/CD
to/TO
48/CD
3\/8/CD
,/,
while/IN
International/NNP
Paper/NNP
fell/VBD
7\/8/CD
to/TO
48/CD
7\/8/CD
,/,
Champion/NNP
International/NNP
lost/VBD
3\/8/CD
to/TO
31/CD
1\/2/CD
and/CC
Louisiana-Pacific/NNP
dropped/VBD
1\/8/CD
to/TO
40/CD
1\/4/CD
./.
Texaco/NNP
rose/VBD
3\/4/CD
to/TO
53/CD
3\/8/CD
as/IN
4.4/CD
million/CD
shares/NNS
changed/VBD
hands/NNS
./.
Most/JJS
of/IN
the/DT
volume/NN
came/VBD
from/IN
trades/NNS
designed/VBN
to/TO
capture/VB
the/DT
stock/NN
's/POS
next/JJ
dividend/NN
;/:
Texaco/NNP
has/VBZ
a/DT
yield/NN
of/IN
5.6/CD
%/NN
and/CC
goes/VBZ
ex-dividend/JJ
today/NN
./.
Santa/NNP
Fe/NNP
Pacific/NNP
dropped/VBD
1/CD
1\/8/CD
to/TO
17/CD
3\/4/CD
./.
The/DT
company/NN
's/POS
proposal/NN
to/TO
sell/VB
a/DT
20/CD
%/NN
stake/NN
in/IN
its/PRP$
real-estate/NN
unit/NN
for/IN
around/IN
$/$
400/CD
million/CD
has/VBZ
caused/VBN
analysts/NNS
to/TO
consider/VB
whether/IN
to/TO
cut/VB
their/PRP$
estimates/NNS
of/IN
Santa/NNP
Fe/NNP
's/POS
asset/NN
value/NN
./.
GenCorp/NNP
tumbled/VBD
2/CD
to/TO
14/CD
./.
The/DT
company/NN
forecast/VBD
that/IN
fourth-quarter/NN
income/NN
from/IN
continuing/VBG
operations/NNS
would/MD
be/VB
``/``
significantly/RB
''/''
lower/JJR
than/IN
a/DT
year/NN
earlier/JJR
./.
Allergan/NNP
went/VBD
up/IN
1\/2/CD
to/TO
19/CD
3\/8/CD
./.
The/DT
Food/NNP
and/CC
Drug/NNP
Administration/NNP
allowed/VBD
the/DT
company/NN
to/TO
begin/VB
marketing/VBG
a/DT
new/JJ
lens/NN
for/IN
use/NN
in/IN
cataract/NN
patients/NNS
./.
The/DT
American/NNP
Stock/NNP
Exchange/NNP
Market/NNP
Value/NNP
Index/NNP
gained/VBD
1.56/CD
to/TO
372.14/CD
./.
Volume/NN
totaled/VBD
11,390,000/CD
shares/NNS
./.
Old/NNP
Spaghetti/NNP
Warehouse/NNP
rose/VBD
1/CD
to/TO
16/CD
1\/8/CD
./.
Its/PRP$
net/JJ
income/NN
for/IN
the/DT
September/NNP
quarter/NN
rose/VBD
about/IN
41/CD
%/NN
from/IN
a/DT
year/NN
ago/IN
./.
Freeport-McMoRan/NNP
Inc./NNP
said/VBD
it/PRP
will/MD
convert/VB
its/PRP$
Freeport-McMoRan/NNP
Energy/NNP
Partners/NNPS
Ltd./NNP
partnership/NN
into/IN
a/DT
publicly/RB
traded/VBN
company/NN
through/IN
the/DT
exchange/NN
of/IN
units/NNS
of/IN
the/DT
partnership/NN
for/IN
common/JJ
shares/NNS
./.
The/DT
company/NN
said/VBD
the/DT
restructuring/NN
is/VBZ
n't/RB
expected/VBN
to/TO
have/VB
any/DT
impact/NN
,/,
adverse/JJ
or/CC
otherwise/RB
,/,
on/IN
its/PRP$
financial/JJ
results/NNS
./.
Freeport-McMoRan/NNP
,/,
a/DT
New/NNP
Orleans-based/JJ
diversified/JJ
energy/NN
conglomerate/NN
,/,
said/VBD
the/DT
partnership/NN
will/MD
exchange/VB
its/PRP$
assets/NNS
for/IN
common/JJ
shares/NNS
of/IN
a/DT
yet-to-be-formed/JJ
entity/NN
./.
Freeport-McMoRan/NNP
Energy/NNP
Partners/NNP
will/MD
be/VB
liquidated/VBN
and/CC
shares/NNS
of/IN
the/DT
new/JJ
company/NN
distributed/VBN
to/TO
the/DT
partnership/NN
's/POS
unitholders/NNS
./.
Unitholders/NNS
will/MD
receive/VB
two/CD
additional/JJ
55/CD
cents-a-unit/JJ
distribution/NN
payments/NNS
before/IN
the/DT
trust/NN
is/VBZ
liquidated/VBN
in/IN
early/JJ
1990/CD
,/,
the/DT
company/NN
said/VBD
./.
It/PRP
is/VBZ
expected/VBN
that/IN
common/JJ
shares/NNS
equal/JJ
to/TO
the/DT
number/NN
of/IN
units/NNS
outstanding/JJ
--/:
about/IN
108/CD
million/CD
on/IN
Sept./NNP
30/CD
--/:
will/MD
be/VB
issued/VBN
during/IN
the/DT
first/JJ
quarter/NN
of/IN
1990/CD
./.
Freeport-McMoRan/NNP
,/,
the/DT
parent/NN
company/NN
,/,
holds/VBZ
roughly/RB
80/CD
%/NN
of/IN
the/DT
units/NNS
outstanding/JJ
./.
Nissan/NNP
Motor/NNP
Co./NNP
,/,
Japan/NNP
's/POS
second-largest/JJ
car/NN
maker/NN
,/,
announced/VBD
Wednesday/NNP
that/IN
the/DT
parent/NN
concern/NN
's/POS
pretax/NN
earnings/NNS
in/IN
the/DT
first/JJ
half/DT
ended/VBD
last/JJ
Sept./NNP
30/CD
rose/VBD
14/CD
%/NN
to/TO
88.32/CD
billion/CD
yen/NN
$/$
618.1/CD
million/CD
77.6/CD
billion/CD
yen/NN
a/DT
year/NN
earlier/JJR
./.
Nissan/NNP
cited/VBD
strong/JJ
domestic/JJ
sales/NNS
against/IN
the/DT
backdrop/NN
of/IN
continuous/JJ
economic/JJ
expansion/NN
./.
Profit/NN
surged/VBD
42/CD
%/NN
to/TO
40.21/CD
billion/CD
yen/NN
,/,
or/CC
16.09/CD
yen/NN
a/DT
share/NN
,/,
from/IN
28.36/CD
billion/CD
yen/NN
,/,
or/CC
11.72/CD
yen/NN
a/DT
share/NN
./.
Sales/NNS
totaled/VBD
1.916/CD
trillion/CD
yen/NN
,/,
climbing/VBG
17/CD
%/NN
from/IN
1.637/CD
trillion/CD
yen/NN
in/IN
the/DT
year-earlier/JJ
period/NN
./.
Nissan/NNP
scheduled/VBD
a/DT
seven-yen/JJ
interim/JJ
dividend/NN
payment/NN
,/,
unchanged/JJ
./.
Atsushi/NNP
Muramatsu/NNP
,/,
executive/JJ
vice/NN
president/NN
and/CC
chief/NN
financial/JJ
officer/NN
of/IN
Nissan/NNP
,/,
said/VBD
,/,
``/``
The/DT
company/NN
has/VBZ
experienced/VBN
a/DT
remarkable/JJ
turnaround/NN
in/IN
terms/NNS
of/IN
profitability/NN
since/IN
the/DT
fiscal/JJ
year/NN
ending/VBG
March/NNP
1987/CD
,/,
when/WRB
the/DT
sharp/JJ
and/CC
rapid/JJ
appreciation/NN
of/IN
the/DT
yen/NN
caused/VBD
many/JJ
difficulties/NNS
./.
``/``
It/PRP
can/MD
be/VB
said/VBN
that/IN
the/DT
trend/NN
of/IN
financial/JJ
improvement/NN
has/VBZ
been/VBN
firmly/RB
set/VBN
,/,
''/''
he/PRP
added/VBD
./.
Heritage/NNP
Media/NNP
Corp./NNP
,/,
New/NNP
York/NNP
,/,
said/VBD
it/PRP
offered/VBD
to/TO
buy/VB
the/DT
shares/NNS
of/IN
POP/NNP
Radio/NNP
Corp./NNP
it/PRP
does/VBZ
n't/RB
already/RB
own/VB
in/IN
a/DT
stock/NN
swap/NN
./.
Heritage/NNP
,/,
which/WDT
owns/VBZ
51/CD
%/NN
of/IN
POP/NNP
's/POS
3.6/CD
million/CD
shares/NNS
outstanding/JJ
,/,
said/VBD
it/PRP
will/MD
exchange/VB
one/CD
share/NN
of/IN
a/DT
new/JJ
preferred/VBN
stock/NN
for/IN
each/DT
POP/NNP
common/JJ
share/NN
it/PRP
does/VBZ
n't/RB
already/RB
own/VB
./.
Depending/VBG
upon/IN
how/WRB
many/JJ
warrants/NNS
and/CC
options/NNS
are/VBP
exercised/VBN
prior/RB
to/TO
completion/NN
of/IN
the/DT
transaction/NN
,/,
Heritage/NNP
would/MD
issue/VB
between/IN
1.8/CD
million/CD
and/CC
2.35/CD
million/CD
preferred/VBN
shares/NNS
,/,
a/DT
Heritage/NNP
spokesman/NN
estimated/VBD
./.
In/IN
national/JJ
over-the-counter/JJ
trading/NN
yesterday/NN
,/,
POP/NNP
plunged/VBD
$/$
4/CD
to/TO
$/$
14.75/CD
./.
The/DT
preferred/VBN
stock/NN
,/,
which/WDT
would/MD
have/VB
a/DT
dividend/NN
rate/NN
of/IN
$/$
1.76/CD
a/DT
year/NN
,/,
would/MD
be/VB
convertible/JJ
into/IN
Heritage/NNP
common/JJ
at/IN
a/DT
rate/NN
of/IN
four/CD
common/JJ
shares/NNS
for/IN
each/DT
preferred/VBD
./.
New/NNP
York-based/JJ
POP/NNP
Radio/NNP
provides/VBZ
,/,
through/IN
a/DT
national/JJ
,/,
in-store/JJ
network/NN
,/,
a/DT
customized/VBN
music/NN
,/,
information/NN
and/CC
advertising/VBG
service/NN
which/WDT
simulates/VBZ
live/JJ
radio/NN
./.
Heritage/NNP
owns/VBZ
and/CC
operates/VBZ
television/NN
and/CC
radio/NN
stations/NNS
and/CC
in-store/JJ
advertising/NN
and/CC
promotion/NN
programs/NNS
./.
GenCorp/NNP
Inc./NNP
,/,
hurt/VBN
by/IN
a/DT
plant/NN
accident/NN
and/CC
other/JJ
unexpected/JJ
costs/NNS
,/,
said/VBD
it/PRP
expects/VBZ
to/TO
report/VB
that/IN
fiscal/JJ
fourth-quarter/NN
profit/NN
from/IN
continuing/VBG
operations/NNS
will/MD
be/VB
significantly/RB
below/IN
last/JJ
year/NN
's/POS
$/$
25/CD
million/CD
./.
The/DT
Fairlawn/NNP
,/,
Ohio-based/JJ
company/NN
also/RB
said/VBD
that/DT
full-year/JJ
profit/NN
from/IN
continuing/VBG
operations/NNS
will/MD
be/VB
far/RB
below/IN
last/JJ
year/NN
's/POS
$/$
148/CD
million/CD
./.
Last/JJ
year/NN
's/POS
figures/NNS
include/VBP
a/DT
one-time/JJ
loss/NN
of/IN
$/$
12/CD
million/CD
for/IN
restructuring/NN
and/CC
unusual/JJ
items/NNS
./.
But/CC
the/DT
automotive/JJ
parts/NNS
and/CC
aerospace/NN
concern/NN
expects/VBZ
that/IN
net/NN
for/IN
the/DT
year/NN
ending/VBG
Nov./NNP
30/CD
will/MD
exceed/VB
last/JJ
fiscal/JJ
year/NN
's/POS
net/NN
of/IN
$/$
70/CD
million/CD
,/,
or/CC
$/$
2.19/CD
a/DT
share/NN
,/,
primarily/RB
because/IN
of/IN
$/$
200/CD
million/CD
in/IN
gains/NNS
from/IN
sales/NNS
of/IN
discontinued/VBN
operations/NNS
./.
Harry/NNP
Millis/NNP
,/,
an/DT
analyst/NN
at/IN
McDonald/NNP
&/CC
Co./NNP
in/IN
Cleveland/NNP
,/,
said/VBD
GenCorp/NNP
's/POS
unanticipated/JJ
losses/NNS
come/VBP
largely/RB
from/IN
an/DT
accident/NN
at/IN
a/DT
government-owned/JJ
assembly/NN
plant/NN
in/IN
Kansas/NNP
,/,
run/VBN
by/IN
a/DT
private/JJ
subcontractor/NN
,/,
that/WDT
makes/VBZ
cluster/NN
bombs/NNS
for/IN
GenCorp/NNP
's/POS
Aerojet/NNP
Ordnance/NNP
business/NN
./.
Transamerica/NNP
Corp./NNP
,/,
San/NNP
Francisco/NNP
,/,
said/VBD
third-quarter/NN
profit/NN
was/VBD
essentially/RB
flat/JJ
despite/IN
a/DT
large/JJ
one-time/JJ
gain/NN
a/DT
year/NN
earlier/JJR
./.
The/DT
insurance/NN
and/CC
financial/JJ
services/NNS
concern/NN
said/VBD
profit/NN
for/IN
the/DT
quarter/NN
rose/VBD
1.1/CD
%/NN
to/TO
$/$
93.9/CD
million/CD
,/,
or/CC
$/$
1.19/CD
a/DT
share/NN
,/,
compared/VBN
with/IN
$/$
92.9/CD
million/CD
,/,
or/CC
$/$
1.18/CD
a/DT
share/NN
,/,
the/DT
year/NN
earlier/JJR
./.
The/DT
results/NNS
reflected/VBD
a/DT
24/CD
%/NN
gain/NN
in/IN
income/NN
from/IN
its/PRP$
finance/NN
businesses/NNS
,/,
and/CC
a/DT
15/CD
%/NN
slide/NN
in/IN
income/NN
from/IN
insurance/NN
operations/NNS
./.
Transamerica/NNP
said/VBD
third-quarter/NN
investment/NN
gains/NNS
were/VBD
$/$
10.2/CD
million/CD
,/,
compared/VBN
with/IN
$/$
6.4/CD
million/CD
the/DT
year/NN
earlier/JJR
./.
It/PRP
said/VBD
insurance/NN
profit/NN
reflected/VBD
a/DT
$/$
6/CD
million/CD
loss/NN
from/IN
Hurricane/NNP
Hugo/NNP
./.
It/PRP
also/RB
estimated/VBD
that/IN
losses/NNS
from/IN
the/DT
Oct./NNP
17/CD
earthquake/NN
in/IN
California/NNP
would/MD
be/VB
no/RB
more/JJR
than/IN
$/$
6/CD
million/CD
,/,
and/CC
would/MD
be/VB
included/VBN
in/IN
fourth-quarter/NN
results/NNS
./.
RMS/NNP
International/NNP
Inc./NNP
,/,
Hasbrouk/NNP
Heights/NNP
,/,
N.J./NNP
,/,
facing/VBG
a/DT
cash-flow/JJ
squeeze/NN
,/,
said/VBD
it/PRP
is/VBZ
seeking/VBG
other/JJ
financing/VBG
sources/NNS
and/CC
waivers/NNS
from/IN
debenture/NN
holders/NNS
./.
The/DT
company/NN
said/VBD
that/IN
because/IN
of/IN
softening/VBG
sales/NNS
it/PRP
is/VBZ
n't/RB
in/IN
compliance/NN
with/IN
requirements/NNS
that/IN
it/PRP
maintain/VB
$/$
3/CD
million/CD
in/IN
working/VBG
capital/NN
./.
RMS/NNP
distributes/VBZ
electronic/JJ
devices/NNS
and/CC
produces/VBZ
power/NN
supplies/NNS
and/CC
plastic/JJ
literature/NN
displays/NNS
./.
RMS/NNP
said/VBD
it/PRP
had/VBD
a/DT
loss/NN
of/IN
$/$
158,666/CD
,/,
or/CC
10/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
third/JJ
quarter/NN
,/,
compared/VBN
with/IN
a/DT
year-earlier/JJ
loss/NN
of/IN
$/$
26,956/CD
,/,
or/CC
two/CD
cents/NNS
a/DT
share/NN
./.
Sales/NNS
rose/VBD
to/TO
$/$
3/CD
million/CD
from/IN
$/$
2.9/CD
million/CD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
the/DT
company/NN
reported/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
608,413/CD
,/,
or/CC
39/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
year-earlier/JJ
net/JJ
income/NN
of/IN
$/$
967,809/CD
,/,
or/CC
62/CD
cents/NNS
a/DT
share/NN
./.
Sales/NNS
rose/VBD
to/TO
$/$
9.8/CD
million/CD
from/IN
$/$
8.9/CD
million/CD
./.
Meridian/NNP
National/NNP
Corp./NNP
said/VBD
it/PRP
sold/VBD
750,000/CD
shares/NNS
of/IN
its/PRP$
common/JJ
stock/NN
to/TO
the/DT
McAlpine/NNP
family/NN
interests/NNS
,/,
for/IN
$/$
1/CD
million/CD
,/,
or/CC
$/$
1.35/CD
a/DT
share/NN
./.
The/DT
sale/NN
represents/VBZ
10.2/CD
%/NN
of/IN
Meridian/NNP
's/POS
shares/NNS
outstanding/JJ
./.
The/DT
McAlpine/NNP
family/NN
,/,
which/WDT
operates/VBZ
a/DT
number/NN
of/IN
multinational/JJ
companies/NNS
,/,
including/VBG
a/DT
London-based/JJ
engineering/NN
and/CC
construction/NN
company/NN
,/,
also/RB
lent/VBD
to/TO
Meridian/NNP
National/NNP
$/$
500,000/CD
./.
That/DT
amount/NN
is/VBZ
convertible/JJ
into/IN
shares/NNS
of/IN
Meridian/NNP
common/JJ
stock/NN
at/IN
$/$
2/CD
a/DT
share/NN
during/IN
its/PRP$
one-year/JJ
term/NN
./.
The/DT
loan/NN
may/MD
be/VB
extended/VBN
by/IN
the/DT
McAlpine/NNP
group/NN
for/IN
an/DT
additional/JJ
year/NN
with/IN
an/DT
increase/NN
in/IN
the/DT
conversion/NN
price/NN
to/TO
$/$
2.50/CD
a/DT
share/NN
./.
The/DT
sale/NN
of/IN
shares/NNS
to/TO
the/DT
McAlpine/NNP
family/NN
along/IN
with/IN
the/DT
recent/JJ
sale/NN
of/IN
750,000/CD
shares/NNS
of/IN
Meridian/NNP
stock/NN
to/TO
Haden/NNP
MacLellan/NNP
Holding/NNP
PLC/NNP
of/IN
Surrey/NNP
,/,
England/NNP
and/CC
a/DT
recent/JJ
public/JJ
offering/NN
have/VBP
increased/VBN
Meridian/NNP
's/POS
net/JJ
worth/NN
to/TO
$/$
8.5/CD
million/CD
,/,
said/VBD
William/NNP
Feniger/NNP
,/,
chief/NN
executive/NN
officer/NN
of/IN
Toledo/NNP
,/,
Ohio-based/JJ
Meridian/NNP
./.
Ratners/NNP
Group/NNP
PLC/NNP
,/,
a/DT
fast-growing/JJ
,/,
acquisition-minded/JJ
London-based/JJ
jeweler/NN
,/,
raised/VBD
its/PRP$
price/NN
for/IN
Seattle-based/JJ
specialty/NN
jeweler/NN
Weisfield/NNP
's/POS
Inc./NNP
to/TO
$/$
57.50/CD
a/DT
share/NN
,/,
or/CC
$/$
62.1/CD
million/CD
,/,
from/IN
$/$
50/CD
a/DT
share/NN
,/,
or/CC
$/$
55/CD
million/CD
,/,
after/IN
another/DT
concern/NN
said/VBD
it/PRP
would/MD
be/VB
prepared/VBN
to/TO
outbid/VB
Ratners/NNP
's/POS
initial/JJ
offer/NN
./.
The/DT
other/JJ
concern/NN
was/VBD
n't/RB
identified/VBD
./.
Ratners/NNP
's/POS
chairman/NN
,/,
Gerald/NNP
Ratner/NNP
,/,
said/VBD
the/DT
deal/NN
remains/VBZ
of/IN
``/``
substantial/JJ
benefit/NN
to/TO
Ratners/NNP
./.
''/''
In/IN
London/NNP
at/IN
mid-afternoon/JJ
yesterday/NN
,/,
Ratners/NNP
's/POS
shares/NNS
were/VBD
up/RB
2/CD
pence/NN
1.26/CD
cents/NNS
260/CD
pence/NN
$/$
1.64/CD
The/DT
sweetened/VBN
offer/NN
has/VBZ
acceptances/NNS
from/IN
more/RBR
than/IN
50/CD
%/NN
of/IN
Weisfield/NNP
's/POS
shareholders/NNS
,/,
and/CC
it/PRP
is/VBZ
scheduled/VBN
for/IN
completion/NN
by/IN
Dec./NNP
10/CD
./.
The/DT
acquisition/NN
of/IN
87-store/JJ
Weisfield/NNP
's/POS
raises/VBZ
Ratners/NNP
's/POS
U.S./NNP
presence/NN
to/TO
450/CD
stores/NNS
./.
About/IN
30/CD
%/NN
of/IN
Ratners/NNP
's/POS
profit/NN
already/RB
is/VBZ
derived/VBN
from/IN
the/DT
U.S/NNP
./.
Carnival/NNP
Cruise/NNP
Lines/NNP
Inc./NNP
said/VBD
potential/JJ
problems/NNS
with/IN
the/DT
construction/NN
of/IN
two/CD
big/JJ
cruise/NN
ships/NNS
from/IN
Finland/NNP
have/VBP
been/VBN
averted/VBN
./.
Last/JJ
week/NN
,/,
Miami-based/JJ
Carnival/NNP
disclosed/VBD
that/IN
Waertsilae/NNP
Marine/NNP
Industries/NNPS
,/,
the/DT
Finnish/JJ
shipyard/NN
that/WDT
is/VBZ
building/VBG
Carnival/NNP
's/POS
new/JJ
cruise/NN
ships/NNS
,/,
planned/VBD
to/TO
file/VB
for/IN
bankruptcy/NN
./.
Yesterday/NN
,/,
Carnival/NNP
said/VBD
a/DT
new/JJ
company/NN
has/VBZ
been/VBN
formed/VBN
in/IN
Finland/NNP
that/WDT
will/MD
carry/VB
on/IN
Waertsilae/NNP
's/POS
shipbuilding/NN
operations/NNS
./.
Carnival/NNP
said/VBD
it/PRP
will/MD
be/VB
an/DT
11/CD
%/NN
shareholder/NN
in/IN
the/DT
new/JJ
company/NN
./.
Carnival/NNP
said/VBD
the/DT
Fantasy/NNP
,/,
a/DT
2,050-passenger/JJ
ship/NN
that/WDT
was/VBD
slated/VBN
to/TO
be/VB
delivered/VBN
this/DT
month/NN
,/,
will/MD
be/VB
delivered/VBN
in/IN
January/NNP
./.
A/DT
second/JJ
ship/NN
is/VBZ
now/RB
expected/VBN
to/TO
be/VB
delivered/VBN
late/JJ
next/JJ
year/NN
or/CC
early/RB
in/IN
1991/CD
./.
Carnival/NNP
had/VBD
expected/VBN
that/DT
ship/NN
to/TO
be/VB
delivered/VBN
next/JJ
fall/NN
./.
A/DT
planned/VBN
third/JJ
ship/NN
still/RB
may/MD
be/VB
built/VBN
in/IN
the/DT
Finnish/JJ
shipyard/NN
,/,
or/CC
may/MD
be/VB
built/VBN
elsewhere/RB
,/,
Carnival/NNP
said/VBD
./.
Valley/NNP
Federal/NNP
Savings/NNP
&/CC
Loan/NNP
Association/NNP
took/VBD
an/DT
$/$
89.9/CD
million/CD
charge/NN
as/IN
it/PRP
reported/VBD
a/DT
third-quarter/NN
loss/NN
of/IN
$/$
70.7/CD
million/CD
,/,
or/CC
$/$
12.09/CD
a/DT
share/NN
./.
The/DT
Van/NNP
Nuys/NNP
,/,
Calif./NNP
,/,
thrift/NN
had/VBD
net/JJ
income/NN
of/IN
$/$
132,000/CD
,/,
or/CC
three/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
ago/IN
./.
The/DT
bulk/NN
of/IN
the/DT
pretax/NN
charge/NN
is/VBZ
a/DT
$/$
62/CD
million/CD
write-off/NN
of/IN
capitalized/VBN
servicing/NN
at/IN
the/DT
mobile/JJ
home/NN
financing/VBG
subsidiary/NN
,/,
which/WDT
the/DT
company/NN
said/VBD
had/VBD
been/VBN
a/DT
big/JJ
drain/NN
on/IN
earnings/NNS
./.
The/DT
company/NN
said/VBD
the/DT
one-time/JJ
provision/NN
would/MD
substantially/RB
eliminate/VB
all/DT
future/JJ
losses/NNS
at/IN
the/DT
unit/NN
./.
Valley/NNP
Federal/NNP
also/RB
added/VBD
$/$
18/CD
million/CD
to/TO
realestate/VB
loan/NN
reserves/NNS
and/CC
eliminated/VBN
$/$
9.9/CD
million/CD
of/IN
good/JJ
will/NN
./.
The/DT
thrift/NN
said/VBD
that/IN
``/``
after/IN
these/DT
charges/NNS
and/CC
assuming/VBG
no/DT
dramatic/JJ
fluctuation/NN
in/IN
interest/NN
rates/NNS
,/,
the/DT
association/NN
expects/VBZ
to/TO
achieve/VB
near/IN
record/NN
earnings/NNS
in/IN
1990/CD
./.
''/''
Valley/NNP
Federal/NNP
is/VBZ
currently/RB
being/VBG
examined/VBN
by/IN
regulators/NNS
./.
New/JJ
loans/NNS
continue/VBP
to/TO
slow/VB
;/:
they/PRP
were/VBD
$/$
6.6/CD
million/CD
in/IN
the/DT
quarter/NN
compared/VBN
with/IN
$/$
361.8/CD
million/CD
a/DT
year/NN
ago/IN
./.
The/DT
thrift/NN
has/VBZ
assets/NNS
of/IN
$/$
3.2/CD
billion/CD
./.
First/NNP
of/IN
America/NNP
Bank/NNP
Corp./NNP
said/VBD
it/PRP
completed/VBD
its/PRP$
acquisition/NN
of/IN
Midwest/NNP
Financial/NNP
Group/NNP
Inc./NNP
for/IN
about/IN
$/$
250/CD
million/CD
./.
First/NNP
of/IN
America/NNP
,/,
which/WDT
now/RB
has/VBZ
45/CD
banks/NNS
and/CC
$/$
12.5/CD
billion/CD
in/IN
assets/NNS
,/,
announced/VBD
an/DT
agreement/NN
to/TO
acquire/VB
the/DT
Peoria/NNP
,/,
Ill./NNP
,/,
bank/NN
holding/VBG
company/NN
in/IN
January/NNP
./.
Midwest/NNP
Financial/NNP
has/VBZ
$/$
2.3/CD
billion/CD
in/IN
assets/NNS
and/CC
eight/CD
banks/NNS
./.
The/DT
Midwest/NNP
Financial/NNP
subsidiary/NN
banks/NNS
will/MD
continue/VB
to/TO
operate/VB
under/IN
their/PRP$
current/JJ
names/NNS
until/IN
early/JJ
1990/CD
,/,
when/WRB
each/DT
will/MD
adopt/VB
the/DT
First/NNP
of/IN
America/NNP
name/NN
./.
Kalamazoo/NNP
,/,
Mich.-based/JJ
First/NNP
of/IN
America/NNP
said/VBD
it/PRP
will/MD
eliminate/VB
the/DT
13/CD
management/NN
positions/NNS
of/IN
the/DT
former/JJ
Midwest/NNP
Financial/NNP
parent/NN
company/NN
./.
First/NNP
of/IN
America/NNP
said/VBD
some/DT
of/IN
the/DT
managers/NNS
will/MD
take/VB
other/JJ
jobs/NNS
with/IN
First/NNP
of/IN
America/NNP
./.
But/CC
it/PRP
said/VBD
that/IN
severance/NN
payments/NNS
to/TO
those/DT
executives/NNS
not/RB
staying/VBG
with/IN
the/DT
company/NN
will/MD
reduce/VB
First/NNP
of/IN
America/NNP
's/POS
operating/NN
results/NNS
for/IN
1989/CD
by/IN
$/$
3/CD
million/CD
to/TO
$/$
4/CD
million/CD
,/,
or/CC
15/CD
cents/NNS
to/TO
20/CD
cents/NNS
a/DT
share/NN
./.
Coleco/NNP
Industries/NNPS
Inc./NNP
,/,
a/DT
once/RB
high-flying/JJ
toy/NN
maker/NN
whose/WP$
stock/NN
peaked/JJ
at/IN
$/$
65/CD
a/DT
share/NN
in/IN
the/DT
early/JJ
1980s/CD
,/,
filed/VBD
a/DT
Chapter/NN
11/CD
reorganization/NN
plan/NN
that/WDT
provides/VBZ
just/RB
1.125/CD
cents/NNS
a/DT
share/NN
for/IN
common/JJ
stockholders/NNS
./.
Under/IN
the/DT
plan/NN
,/,
unsecured/JJ
creditors/NNS
,/,
who/WP
are/VBP
owed/VBN
about/IN
$/$
430/CD
million/CD
,/,
would/MD
receive/VB
about/IN
$/$
92/CD
million/CD
,/,
or/CC
21/CD
cents/NNS
for/IN
each/DT
dollar/NN
they/PRP
are/VBP
owed/VBN
./.
In/IN
addition/NN
,/,
they/PRP
will/MD
receive/VB
stock/NN
in/IN
the/DT
reorganized/VBN
company/NN
,/,
which/WDT
will/MD
be/VB
named/VBN
Ranger/NNP
Industries/NNPS
Inc/NNP
./.
After/IN
these/DT
payments/NNS
,/,
about/IN
$/$
225,000/CD
will/MD
be/VB
available/JJ
for/IN
the/DT
20/CD
million/CD
common/JJ
shares/NNS
outstanding/JJ
./.
The/DT
Avon/NNP
,/,
Conn./NNP
,/,
company/NN
's/POS
stock/NN
hit/VBD
a/DT
high/JJ
in/IN
1983/CD
after/IN
it/PRP
unveiled/VBD
its/PRP$
Adam/NNP
home/NN
computer/NN
,/,
but/CC
the/DT
product/NN
was/VBD
plagued/VBN
with/IN
glitches/NNS
and/CC
the/DT
company/NN
's/POS
fortunes/NNS
plunged/VBD
./.
But/CC
Coleco/NNP
bounced/VBD
back/RB
with/IN
the/DT
introduction/NN
of/IN
the/DT
Cabbage/NNP
Patch/NNP
dolls/NNS
,/,
whose/WP$
sales/NNS
hit/VBD
$/$
600/CD
million/CD
in/IN
1985/CD
./.
But/CC
as/IN
the/DT
craze/NN
died/VBD
,/,
Coleco/NNP
failed/VBD
to/TO
come/VB
up/IN
with/IN
another/DT
winner/NN
and/CC
filed/VBD
for/IN
bankruptcy-law/JJ
protection/NN
in/IN
July/NNP
1988/CD
./.
The/DT
plan/NN
was/VBD
filed/VBN
jointly/RB
with/IN
unsecured/JJ
creditors/NNS
in/IN
federal/JJ
bankruptcy/NN
court/NN
in/IN
New/NNP
York/NNP
and/CC
must/MD
be/VB
approved/VBN
by/IN
the/DT
court/NN
./.
ORTEGA/NNP
ENDED/VBD
a/DT
truce/NN
with/IN
the/DT
Contras/NNPS
and/CC
said/VBD
elections/NNS
were/VBD
threatened/VBN
./.
The/DT
Nicaraguan/JJ
president/NN
,/,
citing/VBG
attacks/NNS
by/IN
the/DT
U.S.-backed/JJ
rebels/NNS
,/,
suspended/VBD
a/DT
19-month-old/JJ
cease-fire/NN
and/CC
accused/VBD
Bush/NNP
of/IN
``/``
promoting/VBG
death/NN
./.
''/''
While/IN
he/PRP
reaffirmed/VBD
support/NN
for/IN
the/DT
country/NN
's/POS
Feb./NNP
25/CD
elections/NNS
,/,
Ortega/NNP
indicated/VBD
that/IN
renewed/VBN
U.S./NNP
military/JJ
aid/NN
to/TO
the/DT
Contras/NNPS
could/MD
thwart/VB
the/DT
balloting/NN
./.
He/PRP
said/VBD
U.S./NNP
assistance/NN
should/MD
be/VB
used/VBN
to/TO
demobilize/VB
the/DT
rebels/NNS
./.
A/DT
White/NNP
House/NNP
spokesman/NN
condemned/VBD
the/DT
truce/NN
suspension/NN
as/IN
``/``
deplorable/JJ
''/''
but/CC
brushed/VBD
off/IN
talk/NN
of/IN
renewing/VBG
military/JJ
funding/NN
for/IN
the/DT
insurgents/NNS
./.
The/DT
Contra/NNP
military/JJ
command/NN
,/,
in/IN
a/DT
statement/NN
from/IN
Honduras/NNP
,/,
said/VBD
Sandinista/NNP
troops/NNS
had/VBD
launched/VBN
a/DT
major/JJ
offensive/NN
against/IN
the/DT
rebel/NN
forces/NNS
./.
East/NNP
German/NNP
leader/NN
Krenz/NNP
called/VBD
the/DT
protests/NNS
in/IN
his/PRP$
country/NN
a/DT
``/``
good/JJ
sign/NN
,/,
''/''
saying/VBG
that/IN
many/JJ
of/IN
those/DT
marching/VBG
for/IN
democratic/JJ
freedoms/NNS
were/VBD
showing/VBG
support/NN
for/IN
``/``
the/DT
renovation/NN
for/IN
socialism/NN
./.
''/''
The/DT
Communist/NNP
Party/NNP
chief/NN
,/,
in/IN
Moscow/NNP
for/IN
talks/NNS
with/IN
Soviet/JJ
officials/NNS
,/,
also/RB
said/VBD
East/NNP
Germany/NNP
would/MD
follow/VB
Gorbachev/NNP
's/POS
restructuring/NN
plans/NNS
./.
Thousands/NNS
of/IN
East/NNP
Germans/NNPS
fled/VBD
to/TO
Czechoslovakia/NNP
after/IN
the/DT
East/NNP
Berlin/NNP
government/NN
lifted/VBD
travel/NN
restrictions/NNS
./.
The/DT
ban/NN
on/IN
cross-border/JJ
movement/NN
was/VBD
imposed/VBN
last/JJ
month/NN
after/IN
a/DT
massive/JJ
exodus/NN
of/IN
emigres/NNS
to/TO
West/NNP
Germany/NNP
./.
Also/RB
,/,
a/DT
Communist/NNP
official/NN
for/IN
the/DT
first/JJ
time/NN
said/VBD
the/DT
future/NN
of/IN
the/DT
Berlin/NNP
Wall/NNP
could/MD
be/VB
open/JJ
to/TO
discussion/NN
./.
Health/NNP
officials/NNS
plan/VBP
to/TO
extend/VB
a/DT
moratorium/NN
on/IN
federal/JJ
funding/NN
of/IN
research/NN
involving/VBG
fetal-tissue/NN
transplants/NNS
./.
The/DT
assistant/JJ
HHS/NNP
secretary/NN
said/VBD
the/DT
ban/NN
``/``
should/MD
be/VB
continued/VBN
indefinitely/RB
./.
''/''
While/IN
researchers/NNS
believe/VBP
such/JJ
transplants/NNS
could/MD
help/VB
treat/VB
diseases/NNS
like/IN
Alzheimer/NNP
's/POS
,/,
anti-abortionists/NNS
oppose/VBP
the/DT
research/NN
./.
Rep./NNP
Dingell/NNP
of/IN
Michigan/NNP
plans/VBP
to/TO
unveil/VB
today/NN
a/DT
proposal/NN
that/WDT
would/MD
break/VB
with/IN
Bush/NNP
's/POS
clean-air/JJ
bill/NN
on/IN
the/DT
issue/NN
of/IN
emissions/NNS
that/WDT
lead/VBP
to/TO
acid/JJ
rain/NN
./.
The/DT
Democrat/NNP
's/POS
proposal/NN
is/VBZ
described/VBN
by/IN
government/NN
sources/NNS
and/CC
lobbyists/NNS
as/RB
significantly/RB
weaker/JJR
than/IN
the/DT
president/NN
's/POS
plan/NN
to/TO
cut/VB
utility/NN
emissions/NNS
./.
House-Senate/NNP
conferees/NNS
approved/VBD
major/JJ
portions/NNS
of/IN
a/DT
package/NN
for/IN
more/RBR
than/IN
$/$
500/CD
million/CD
in/IN
economic/JJ
aid/NN
for/IN
Poland/NNP
./.
The/DT
plan/NN
relies/VBZ
heavily/RB
on/IN
$/$
240/CD
million/CD
in/IN
credit/NN
and/CC
loan/NN
guarantees/NNS
in/IN
fiscal/JJ
1990/CD
in/IN
hopes/NNS
of/IN
stimulating/VBG
future/JJ
trade/NN
and/CC
investment/NN
./.
South/NNP
Africa/NNP
accused/VBD
armed/VBN
Namibian/JJ
nationalist/JJ
guerrillas/NNS
of/IN
crossing/VBG
from/IN
bases/NNS
in/IN
neighboring/VBG
Angola/NNP
,/,
violating/VBG
U.N.-supervised/JJ
peace/NN
plans/NNS
for/IN
the/DT
territory/NN
's/POS
independence/NN
from/IN
Pretoria/NNP
./.
South/NNP
African/NNP
troops/NNS
were/VBD
placed/VBN
on/IN
alert/NN
./.
Guerrilla/NN
leaders/NNS
said/VBD
Pretoria/NNP
was/VBD
attempting/VBG
to/TO
sabotage/VB
next/JJ
week/NN
's/POS
elections/NNS
in/IN
Namibia/NNP
./.
Gunmen/NNS
in/IN
Lebanon/NNP
assassinated/VBD
a/DT
Saudi/NNP
Arabian/NNP
Embassy/NNP
employee/NN
,/,
and/CC
the/DT
pro-Iranian/JJ
Islamic/NNP
Jihad/NNP
took/VBD
responsibility/NN
for/IN
the/DT
slaying/NN
to/TO
avenge/VB
the/DT
beheading/NN
of/IN
16/CD
terrorists/NNS
by/IN
Riyadh/NNP
's/POS
government/NN
in/IN
September/NNP
./.
Also/RB
in/IN
Beirut/NNP
,/,
a/DT
Moslem/NNP
group/NN
vowed/VBD
to/TO
kill/VB
Americans/NNPS
if/IN
the/DT
U.S./NNP
implements/VBZ
a/DT
policy/NN
to/TO
seize/VB
suspects/NNS
abroad/RB
./.
Nixon/NNP
concluded/VBD
five/CD
days/NNS
of/IN
private/JJ
talks/NNS
with/IN
Chinese/JJ
leaders/NNS
in/IN
Beijing/NNP
,/,
but/CC
apparently/RB
failed/VBD
to/TO
ease/VB
strains/NNS
in/IN
Sino-U.S./JJ
ties/NNS
caused/VBN
by/IN
China/NNP
's/POS
crackdown/NN
against/IN
pro-democracy/JJ
protesters/NNS
in/IN
June/NNP
./.
Beijing/NNP
's/POS
rulers/NNS
complained/VBD
to/TO
the/DT
former/JJ
president/NN
about/IN
U.S./NNP
``/``
interference/NN
''/''
in/IN
China/NNP
's/POS
domestic/JJ
affairs/NNS
./.
Mexico/NNP
's/POS
President/NNP
Salinas/NNP
said/VBD
the/DT
country/NN
's/POS
recession/NN
had/VBD
ended/VBN
and/CC
the/DT
economy/NN
was/VBD
growing/VBG
again/RB
./.
In/IN
his/PRP$
first/JJ
state/NN
of/IN
the/DT
nation/NN
address/NN
,/,
Salinas/NNP
pledged/VBD
to/TO
continue/VB
his/PRP$
program/NN
of/IN
modernization/NN
and/CC
warned/VBD
opposition/NN
politicians/NNS
that/IN
impeding/VBG
progress/NN
could/MD
cost/VB
them/PRP
popular/JJ
support/NN
./.
Pakistan/NNP
's/POS
Bhutto/NNP
defeated/VBD
the/DT
first/JJ
no-confidence/NN
motion/NN
in/IN
the/DT
nation/NN
's/POS
42-year/JJ
history/NN
,/,
surviving/VBG
the/DT
vote/NN
that/WDT
could/MD
have/VB
brought/VBN
down/RP
her/PRP$
11-month-old/JJ
government/NN
./.
The/DT
prime/JJ
minister/NN
's/POS
opponents/NNS
claimed/VBD
the/DT
balloting/NN
,/,
12/CD
votes/NNS
short/JJ
of/IN
a/DT
majority/NN
in/IN
Islamabad/NNP
's/POS
237-seat/JJ
assembly/NN
,/,
was/VBD
rigged/VBN
./.
The/DT
White/NNP
House/NNP
said/VBD
the/DT
shipboard/NN
meetings/NNS
next/JJ
month/NN
between/IN
Bush/NNP
and/CC
Soviet/NNP
leader/NN
Gorbachev/NNP
will/MD
take/VB
place/NN
in/IN
the/DT
waters/NNS
off/IN
Malta/NNP
./.
The/DT
location/NN
was/VBD
disclosed/VBN
as/IN
the/DT
U.S./NNP
began/VBD
planning/VBG
the/DT
issues/NNS
to/TO
be/VB
discussed/VBN
at/IN
the/DT
Dec./NNP
2-3/CD
tete-a-tete/NN
./.
Bush/NNP
unveiled/VBD
a/DT
package/NN
of/IN
trade/NN
initiatives/NNS
to/TO
help/VB
establish/VB
``/``
economic/JJ
alternatives/NNS
to/TO
drug/NN
trafficking/NN
''/''
in/IN
the/DT
Andean/JJ
nations/NNS
of/IN
South/NNP
America/NNP
./.
The/DT
president/NN
's/POS
plan/NN
includes/VBZ
a/DT
commitment/NN
to/TO
help/VB
negotiate/VB
a/DT
new/JJ
international/JJ
coffee/NN
agreement/NN
./.
Pan/NNP
Am/VBP
has/VBZ
subpoenaed/VBN
several/JJ
government/NN
agencies/NNS
,/,
including/VBG
the/DT
CIA/NNP
and/CC
FBI/NNP
,/,
to/TO
determine/VB
whether/IN
they/PRP
were/VBD
warned/VBN
that/IN
a/DT
bomb/NN
had/VBD
been/VBN
planted/VBN
aboard/IN
a/DT
jet/NN
that/WDT
exploded/VBD
over/IN
Scotland/NNP
last/JJ
December/NNP
,/,
killing/VBG
270/CD
people/NNS
./.
The/DT
airline/NN
is/VBZ
attempting/VBG
to/TO
show/VB
that/IN
Israel/NNP
and/CC
West/NNP
Germany/NNP
warned/VBD
the/DT
U.S./NNP
about/IN
the/DT
impending/JJ
attack/NN
./.
Died/VBD
:/:
James/NNP
A./NNP
Attwood/NNP
,/,
62/CD
,/,
retired/VBN
chairman/NN
and/CC
president/NN
of/IN
Mutual/NNP
Life/NNP
Insurance/NNP
Co./NNP
of/IN
New/NNP
York/NNP
,/,
Tuesday/NNP
,/,
in/IN
New/NNP
York/NNP
City/NNP
,/,
of/IN
an/DT
acute/JJ
anemic/JJ
condition/NN
./.
Sony/NNP
Corp./NNP
completed/VBD
its/PRP$
tender/NN
offer/NN
for/IN
Columbia/NNP
Pictures/NNPS
Entertainment/NNP
Inc./NNP
,/,
with/IN
Columbia/NNP
shareholders/NNS
tendering/VBG
99.3/CD
%/NN
of/IN
all/DT
common/JJ
shares/NNS
outstanding/JJ
by/IN
the/DT
Tuesday/NNP
deadline/NN
./.
Sony/NNP
Columbia/NNP
Acquisition/NNP
Corp./NNP
,/,
formed/VBN
for/IN
the/DT
Columbia/NNP
deal/NN
,/,
will/MD
formally/RB
take/VB
ownership/NN
of/IN
the/DT
movie/NN
studio/NN
later/JJ
this/DT
month/NN
,/,
a/DT
spokesman/NN
said/VBD
./.
Sony/NNP
is/VBZ
paying/VBG
$/$
27/CD
a/DT
share/NN
,/,
or/CC
$/$
3.55/CD
billion/CD
,/,
cash/NN
and/CC
is/VBZ
assuming/VBG
$/$
1.4/CD
billion/CD
of/IN
long-term/JJ
debt/NN
./.
Still/RB
unresolved/JJ
is/VBZ
Sony/NNP
's/POS
effort/NN
to/TO
hire/VB
producers/NNS
Jon/NNP
Peters/NNP
and/CC
Peter/NNP
Guber/NNP
to/TO
run/VB
the/DT
studio/NN
./.
Sony/NNP
's/POS
planned/VBN
acquisition/NN
of/IN
Guber\/Peters/NNP
Entertainment/NNP
Co./NNP
for/IN
$/$
200/CD
million/CD
is/VBZ
scheduled/VBN
to/TO
close/VB
Monday/NNP
./.
Guber\/Peters/NNP
has/VBZ
been/VBN
locked/VBN
in/IN
litigation/NN
with/IN
Warner/NNP
Communications/NNPS
Inc./NNP
in/IN
an/DT
attempt/NN
to/TO
get/VB
out/IN
of/IN
an/DT
exclusive/JJ
production/NN
contract/NN
with/IN
Warner/NNP
./.
Both/DT
sides/NNS
are/VBP
in/IN
talks/NNS
to/TO
settle/VB
the/DT
dispute/NN
./.
Xerox/NNP
Corp./NNP
has/VBZ
told/VBN
employees/NNS
in/IN
its/PRP$
Crum/NNP
&/CC
Forster/NNP
personal/JJ
insurance/NN
operations/NNS
that/IN
it/PRP
is/VBZ
laying/VBG
off/IN
about/IN
300/CD
people/NNS
,/,
or/CC
25/CD
%/NN
of/IN
the/DT
staff/NN
./.
A/DT
spokeswoman/NN
for/IN
Crum/NNP
&/CC
Forster/NNP
said/VBD
employees/NNS
were/VBD
told/VBN
early/RB
this/DT
week/NN
that/IN
numerous/JJ
staff/NN
functions/NNS
for/IN
the/DT
personal/JJ
insurance/NN
lines/NNS
were/VBD
going/VBG
to/TO
be/VB
centralized/VBN
as/IN
a/DT
cost-cutting/JJ
move/NN
./.
She/PRP
said/VBD
the/DT
move/NN
would/MD
result/VB
in/IN
a/DT
after-tax/JJ
charge/NN
of/IN
less/JJR
than/IN
$/$
4/CD
million/CD
to/TO
be/VB
spread/VBN
over/IN
the/DT
next/JJ
three/CD
quarters/NNS
./.
By/IN
comparison/NN
,/,
for/IN
the/DT
first/JJ
nine/CD
months/NNS
,/,
Xerox/NNP
earned/VBD
$/$
492/CD
million/CD
,/,
or/CC
$/$
4.55/CD
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
12.97/CD
billion/CD
./.
Earnings/NNS
at/IN
Xerox/NNP
's/POS
financial-services/JJ
operations/NNS
actually/RB
rose/VBD
slightly/RB
,/,
but/CC
that/DT
was/VBD
largely/RB
because/IN
capital/NN
gains/NNS
at/IN
Crum/NNP
&/CC
Forster/NNP
offset/VBP
Hurricane/NNP
Hugo/NNP
payments/NNS
and/CC
the/DT
reserves/NNS
set/VBD
up/IN
to/TO
cover/VB
future/JJ
payments/NNS
./.
Property\/casualty/NN
insurance/NN
has/VBZ
been/VBN
a/DT
tough/JJ
business/NN
in/IN
recent/JJ
quarters/NNS
,/,
as/IN
pricing/NN
has/VBZ
been/VBN
cutthroat/JJ
and/CC
natural/JJ
disasters/NNS
such/JJ
as/IN
Hurricane/NNP
Hugo/NNP
and/CC
the/DT
California/NNP
earthquake/NN
have/VBP
resulted/VBN
in/IN
huge/JJ
payments/NNS
./.
Komatsu/NNP
Ltd./NNP
,/,
a/DT
large/JJ
integrated/VBN
maker/NN
of/IN
construction/NN
machinery/NN
,/,
posted/VBD
a/DT
32/CD
%/NN
unconsolidated/JJ
gain/NN
in/IN
first-half/JJ
pretax/NN
profit/NN
./.
For/IN
the/DT
period/NN
ended/VBD
Sept.30/CD
,/,
it/PRP
earned/VBD
16.68/CD
billion/CD
yen/NN
,/,
(/(
US$/$
116.7/CD
million/CD
12.68/CD
billion/CD
yen/NN
the/DT
year/NN
before/IN
./.
Sales/NNS
rose/VBD
11/CD
%/NN
to/TO
292.32/CD
billion/CD
yen/NN
from/IN
263.07/CD
billion/CD
yen/NN
./.
Net/JJ
income/NN
surged/VBD
31/CD
%/NN
to/TO
7.63/CD
billion/CD
yen/NN
from/IN
5.82/CD
billion/CD
yen/NN
./.
Per-share/JJ
net/NN
rose/VBD
to/TO
7.84/CD
yen/NN
from/IN
6.53/CD
yen/NN
./.
Brisk/JJ
domestic/JJ
demand/NN
due/JJ
to/TO
increasing/VBG
capital/NN
investment/NN
pushed/VBD
up/RP
sales/NNS
sharply/RB
in/IN
construction/NN
and/CC
industrial/JJ
machinery/NN
divisions/NNS
./.
Domestic/JJ
sales/NNS
of/IN
construction/NN
machinery/NN
,/,
such/JJ
as/IN
power/NN
shovels/NNS
and/CC
bulldozers/NNS
rose/VBD
to/TO
142.84/CD
billion/CD
yen/NN
from/IN
126.15/CD
billion/CD
yen/NN
./.
Demand/NN
from/IN
Europe/NNP
and/CC
Southeast/NNP
Asia/NNP
also/RB
grew/VBD
,/,
but/CC
due/RB
to/TO
increasing/VBG
production/NN
at/IN
local/JJ
plants/NNS
,/,
overseas/JJ
sales/NNS
edged/VBD
down/RB
2.8/CD
%/NN
./.
Komatsu/NNP
predicted/VBD
that/IN
for/IN
the/DT
fiscal/JJ
year/NN
ending/VBG
March/NNP
31/CD
sales/NNS
will/MD
climb/VB
to/TO
600/CD
billion/CD
yen/NN
from/IN
566.54/CD
billion/CD
yen/NN
;/:
pretax/NN
profit/NN
was/VBD
forecast/VBN
at/IN
35/CD
billion/CD
yen/NN
,/,
up/RB
from/IN
28.53/CD
billion/CD
yen/NN
in/IN
fiscal/JJ
1989/CD
./.
Net/NN
is/VBZ
expected/VBN
to/TO
rise/VB
to/TO
17/CD
billion/CD
yen/NN
from/IN
12.82/CD
billion/CD
yen/NN
a/DT
year/NN
earlier/JJR
./.
ECONOMIC/JJ
GROWTH/NN
APPEARS/VBZ
to/TO
be/VB
leveling/VBG
off/IN
,/,
latest/JJS
reports/NNS
suggest/VBP
./.
Factory/NN
orders/NNS
and/CC
construction/NN
outlays/NNS
were/VBD
largely/RB
flat/JJ
in/IN
September/NNP
,/,
while/IN
purchasing/VBG
agents/NNS
said/VBD
manufacturing/NN
shrank/VBD
further/RB
in/IN
October/NNP
./.
Still/RB
,/,
many/JJ
economists/NNS
are/VBP
n't/RB
predicting/VBG
a/DT
recession/NN
anytime/RB
soon/RB
./.
The/DT
Fed/NNP
is/VBZ
coming/VBG
under/IN
pressure/NN
to/TO
cut/VB
short-term/JJ
interest/NN
rates/NNS
due/JJ
to/TO
the/DT
apparent/JJ
slowing/NN
of/IN
the/DT
economy/NN
./.
But/CC
it/PRP
is/VBZ
n't/RB
clear/JJ
yet/RB
whether/IN
the/DT
central/JJ
bank/NN
will/MD
make/VB
such/PDT
a/DT
move/NN
./.
Campbell/NNP
Soup/NNP
forced/VBD
out/IN
its/PRP$
president/NN
and/CC
chief/NN
executive/NN
,/,
R./NNP
Gordon/NNP
McGovern/NNP
,/,
the/DT
strongest/JJS
indication/NN
yet/RB
that/IN
the/DT
Dorrance/NNP
family/NN
plans/VBZ
to/TO
take/VB
charge/NN
of/IN
reshaping/VBG
the/DT
troubled/JJ
food/NN
company/NN
./.
Campbell/NNP
's/POS
stock/NN
rose/VBD
$/$
3.375/CD
,/,
to/TO
$/$
47.125/CD
,/,
in/IN
reaction/NN
./.
The/DT
Chicago/NNP
Merc/NNP
plans/VBZ
an/DT
additional/JJ
``/``
circuit/NN
breaker/NN
''/''
to/TO
stem/VB
sharp/JJ
drops/NNS
in/IN
the/DT
market/NN
./.
Also/RB
,/,
Big/NNP
Board/NNP
Chairman/NNP
Phelan/NNP
said/VBD
he/PRP
would/MD
support/VB
SEC/NNP
halts/NNS
of/IN
program/NN
trading/NN
during/IN
market/NN
crises/NNS
but/CC
not/RB
any/DT
revival/NN
of/IN
a/DT
``/``
collar/NN
''/''
on/IN
trading/NN
./.
Georgia/NNP
Gulf/NNP
received/VBD
a/DT
new/JJ
takeover/NN
bid/NN
from/IN
investor/NN
Harold/NNP
Simmons/NNP
and/CC
NL/NNP
Industries/NNPS
of/IN
$/$
50/CD
a/DT
share/NN
,/,
or/CC
about/IN
$/$
1.1/CD
billion/CD
./.
The/DT
offer/NN
,/,
which/WDT
follows/VBZ
a/DT
$/$
55-a-share/JJ
bid/NN
that/WDT
was/VBD
rejected/VBN
in/IN
September/NNP
,/,
steps/VBZ
up/IN
pressure/NN
on/IN
the/DT
chemicals/NNS
concern/NN
./.
The/DT
minimum-wage/NN
bill/NN
worked/VBD
out/IN
by/IN
Congress/NNP
and/CC
Bush/NNP
won/VBD
easy/JJ
approval/NN
in/IN
the/DT
House/NNP
./.
The/DT
compromise/NN
plan/NN
,/,
which/WDT
boosts/VBZ
the/DT
minimum/JJ
wage/NN
for/IN
the/DT
first/JJ
time/NN
since/IN
1981/CD
,/,
is/VBZ
expected/VBN
to/TO
clear/VB
the/DT
Senate/NNP
soon/RB
./.
Steinberg/NNP
sought/VBD
clearance/NN
to/TO
buy/VB
more/JJR
than/IN
15/CD
%/NN
of/IN
United/NNP
Air/NNP
's/POS
parent/NN
,/,
saying/VBG
he/PRP
may/MD
seek/VB
control/NN
./.
Takeover/NN
experts/NNS
said/VBD
they/PRP
doubted/VBD
the/DT
financier/NN
would/MD
make/VB
a/DT
bid/NN
by/IN
himself/PRP
./.
An/DT
airline/NN
buy-out/NN
bill/NN
was/VBD
approved/VBN
by/IN
the/DT
House/NNP
./.
The/DT
measure/NN
would/MD
make/VB
it/PRP
easier/JJR
for/IN
the/DT
Transportation/NNP
Department/NNP
to/TO
block/VB
leveraged/JJ
buy-outs/NNS
in/IN
the/DT
industry/NN
./.
USX/NNP
was/VBD
cited/VBN
by/IN
OSHA/NNP
for/IN
several/JJ
health/NN
and/CC
safety/NN
violations/NNS
at/IN
two/CD
Pennsylvania/NNP
plants/NNS
and/CC
may/MD
face/VB
a/DT
record/NN
fine/NN
of/IN
$/$
7.3/CD
million/CD
./.
Random/NNP
House/NNP
Chairman/NNP
Robert/NNP
Bernstein/NNP
said/VBD
he/PRP
is/VBZ
resigning/VBG
from/IN
the/DT
publishing/NN
house/NN
he/PRP
has/VBZ
run/VBN
for/IN
23/CD
years/NNS
./.
A/DT
successor/NN
was/VBD
n't/RB
named/VBN
./.
Cray/NNP
Research/NNP
indicated/VBD
that/IN
the/DT
survival/NN
of/IN
a/DT
spinoff/NN
company/NN
,/,
which/WDT
is/VBZ
developing/VBG
a/DT
new/JJ
supercomputer/NN
,/,
depends/VBZ
heavily/RB
on/IN
its/PRP$
chairman/NN
and/CC
chief/NN
designer/NN
,/,
Seymour/NNP
Cray/NNP
./.
Light/NN
trucks/NNS
and/CC
vans/NNS
will/MD
face/VB
the/DT
same/JJ
safety/NN
requirements/NNS
as/IN
automobiles/NNS
under/IN
new/JJ
proposals/NNS
by/IN
the/DT
Transportation/NNP
Department/NNP
./.
The/DT
Treasury/NNP
plans/VBZ
to/TO
sell/VB
$/$
30/CD
billion/CD
in/IN
notes/NNS
and/CC
bonds/NNS
next/IN
week/NN
but/CC
will/MD
delay/VB
the/DT
auction/NN
unless/IN
Congress/NNP
quickly/RB
raises/VBZ
the/DT
debt/NN
ceiling/NN
./.
U.S./NNP
farmers/NNS
'/POS
net/JJ
income/NN
rose/VBD
to/TO
a/DT
record/NN
$/$
59.9/CD
billion/CD
last/JJ
year/NN
despite/IN
one/CD
of/IN
the/DT
worst/JJS
droughts/NNS
ever/RB
./.
Two/CD
antitrust/JJ
agencies/NNS
may/MD
face/VB
further/JJ
cutbacks/NNS
because/IN
of/IN
a/DT
complicated/JJ
new/JJ
funding/NN
device/NN
,/,
some/DT
Democrats/NNPS
in/IN
Congress/NNP
are/VBP
warning/VBG
./.
Markets/NNS
--/:
Stocks/NNS
:/:
Volume/NN
154,240,000/CD
shares/NNS
./.
Dow/NNP
Jones/NNP
industrials/NNS
2645.90/CD
,/,
up/RB
0.82/CD
;/:
transportation/NN
1206.26/CD
,/,
up/RB
1.25/CD
;/:
utilities/NNS
220.45/CD
,/,
up/RB
1.26/CD
./.
Bonds/NNS
:/:
Shearson/NNP
Lehman/NNP
Hutton/NNP
Treasury/NNP
index/NN
3436.58/CD
,/,
up/RB
Commodities/NNS
:/:
Dow/NNP
Jones/NNP
futures/NNS
index/NN
129.91/CD
,/,
up/RB
0.28/CD
;/:
spot/NN
index/NN
131.01/CD
,/,
up/RB
1.17/CD
./.
Dollar/NN
:/:
143.80/CD
yen/NN
,/,
up/RB
0.95/CD
;/:
1.8500/CD
marks/NNS
,/,
up/RB
0.0085/CD
./.
Junk-bond/NN
markdowns/NNS
,/,
an/DT
ongoing/JJ
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
investigation/NN
,/,
a/DT
Drexel/NNP
Burnham/NNP
Lambert/NNP
connection/NN
,/,
a/DT
fizzled/VBN
buy-out/NN
rumor/NN
./.
All/PDT
this/DT
has/VBZ
cast/VBN
a/DT
pall/NN
over/IN
Columbia/NNP
Savings/NNPS
&/CC
Loan/NNP
Association/NNP
and/CC
its/PRP$
high-rolling/JJ
43-year-old/JJ
chairman/NN
,/,
Thomas/NNP
Spiegel/NNP
,/,
who/WP
built/VBD
the/DT
$/$
12.7/CD
billion/CD
Beverly/NNP
Hills/NNP
,/,
Calif./NNP
,/,
thrift/NN
with/IN
high-yield/JJ
junk/NN
bonds/NNS
./.
Bears/NNS
have/VBP
targeted/VBN
Columbia/NNP
's/POS
stock/NN
because/IN
of/IN
the/DT
thrift/NN
's/POS
exposure/NN
to/TO
the/DT
shaky/JJ
junk/NN
market/NN
./.
And/CC
some/DT
investors/NNS
fault/VBP
Mr./NNP
Spiegel/NNP
's/POS
life/NN
style/NN
;/:
he/PRP
earns/VBZ
millions/NNS
of/IN
dollars/NNS
a/DT
year/NN
and/CC
flies/VBZ
around/IN
in/IN
Columbia/NNP
's/POS
jet/NN
planes/NNS
./.
Columbia/NNP
stock/NN
recently/RB
hit/VBD
4/CD
1\/8/CD
,/,
after/IN
reaching/VBG
11/CD
3\/4/CD
earlier/RBR
this/DT
year/NN
on/IN
rumors/NNS
that/IN
Mr./NNP
Spiegel/NNP
would/MD
take/VB
the/DT
thrift/NN
private/JJ
./.
Moreover/RB
,/,
junk/NN
professionals/NNS
think/VBP
Columbia/NNP
's/POS
huge/JJ
third-quarter/NN
markdown/NN
of/IN
its/PRP$
junk/NN
portfolio/NN
to/TO
$/$
4.4/CD
billion/CD
was/VBD
n't/RB
enough/RB
,/,
meaning/VBG
another/DT
markdown/NN
could/MD
be/VB
coming/VBG
./.
But/CC
in/IN
recent/JJ
days/NNS
,/,
Columbia/NNP
has/VBZ
edged/VBN
up/IN
,/,
closing/VBG
at/IN
5/CD
1\/4/CD
,/,
up/RB
3\/8/CD
,/,
yesterday/NN
on/IN
revived/VBN
speculation/NN
that/IN
the/DT
thrift/NN
might/NN
restructure/VB
./.
Mr./NNP
Spiegel/NNP
's/POS
fans/NNS
say/VBP
Columbia/NNP
's/POS
Southern/NNP
California/NNP
branches/NNS
are/VBP
highly/RB
salable/JJ
,/,
and/CC
the/DT
thrift/NN
has/VBZ
$/$
458/CD
million/CD
of/IN
shareholders/NNS
equity/NN
underlying/VBG
its/PRP$
assets/NNS
./.
That/DT
's/VBZ
almost/RB
$/$
10/CD
of/IN
equity/NN
for/IN
each/DT
Columbia/NNP
share/NN
,/,
including/VBG
convertible/JJ
preferred/JJ
shares/NNS
,/,
though/IN
more/JJR
junk/NN
markdowns/NNS
would/MD
reduce/VB
the/DT
cushion/NN
./.
Columbia/NNP
has/VBZ
only/RB
about/IN
10/CD
million/CD
common/JJ
shares/NNS
in/IN
public/JJ
hands/NNS
./.
The/DT
Spiegel/NNP
family/NN
has/VBZ
25/CD
%/NN
of/IN
the/DT
common/JJ
and/CC
75/CD
%/NN
of/IN
the/DT
votes/NNS
./.
Other/JJ
big/JJ
common/JJ
holders/NNS
are/VBP
Carl/NNP
Lindner/NNP
's/POS
American/NNP
Financial/NNP
,/,
investor/NN
Irwin/NNP
Jacobs/NNP
and/CC
Pacific/NNP
Financial/NNP
Research/NNP
,/,
though/IN
the/DT
latter/NN
cut/VBD
its/PRP$
stake/NN
this/DT
summer/NN
./.
While/IN
many/JJ
problems/NNS
would/MD
attend/VB
a/DT
restructuring/NN
of/IN
Columbia/NNP
,/,
investors/NNS
say/VBP
Mr./NNP
Spiegel/NNP
is/VBZ
mulling/VBG
such/PDT
a/DT
plan/NN
to/TO
mitigate/VB
Columbia/NNP
's/POS
junk/NN
problems/NNS
./.
Indeed/RB
,/,
Columbia/NNP
executives/NNS
recently/RB
told/VBD
reporters/NNS
they/PRP
were/VBD
interested/JJ
in/IN
creating/VBG
a/DT
separate/JJ
unit/NN
to/TO
hold/VB
Columbia/NNP
's/POS
junk/NN
bonds/NNS
and/CC
perhaps/RB
do/VB
merchant/JJ
banking/NN
./.
Columbia/NNP
wo/MD
n't/RB
comment/VB
on/IN
all/PDT
the/DT
speculation/NN
./.
But/CC
like/IN
other/JJ
thrifts/NNS
,/,
it/PRP
's/VBZ
expected/VBN
to/TO
seek/VB
regulators/NNS
'/POS
consent/NN
to/TO
create/VB
a/DT
distinct/JJ
junk-bond/NN
entity/NN
./.
Plans/NNS
to/TO
do/VB
this/DT
are/VBP
due/JJ
to/TO
be/VB
filed/VBN
in/IN
a/DT
week/NN
or/CC
so/RB
./.
New/JJ
rules/NNS
force/VBP
thrifts/NNS
to/TO
write/VB
down/IN
their/PRP$
junk/NN
to/TO
market/NN
value/NN
,/,
then/RB
sell/VB
the/DT
bonds/NNS
over/IN
five/CD
years/NNS
./.
That/DT
's/VBZ
why/WRB
Columbia/NNP
just/RB
wrote/VBD
off/IN
$/$
130/CD
million/CD
of/IN
its/PRP$
junk/NN
and/CC
reserved/VBD
$/$
227/CD
million/CD
for/IN
future/JJ
junk/NN
losses/NNS
./.
But/CC
if/IN
Columbia/NNP
could/MD
keep/VB
its/PRP$
junk/NN
bonds/NNS
separate/JJ
from/IN
the/DT
thrift/NN
till/IN
they/PRP
mature/VBP
--/:
at/IN
full/JJ
value/NN
,/,
unless/IN
the/DT
issuer/NN
goes/VBZ
bust/NN
or/CC
restructures/VBZ
--/:
the/DT
junk/NN
portfolio/NN
might/MD
do/VB
all/RB
right/RB
./.
Columbia/NNP
,/,
a/DT
longtime/NN
Drexel/NNP
client/NN
,/,
wo/MD
n't/RB
provide/VB
current/JJ
data/NNS
on/IN
its/PRP$
junk/NN
./.
But/CC
its/PRP$
17/CD
big/JJ
junk/NN
holdings/NNS
at/IN
year/NN
end/NN
showed/VBD
only/RB
a/DT
few/JJ
bonds/NNS
that/WDT
have/VBP
been/VBN
really/RB
battered/VBN
./.
These/DT
were/VBD
Allied/NNP
Stores/NNPS
,/,
Western/NNP
Union/NNP
Telegraph/NNP
,/,
Gillett/NNP
Holdings/NNP
,/,
SCI/NNP
Television/NNP
and/CC
Texas/NNP
Air/NNP
,/,
though/IN
many/JJ
other/JJ
bonds/NNS
in/IN
Columbia/NNP
's/POS
portfolio/NN
also/RB
have/VBP
lost/VBN
value/NN
./.
Possibly/RB
offsetting/VBG
that/DT
,/,
Columbia/NNP
recently/RB
estimated/VBD
it/PRP
has/VBZ
unrealized/JJ
gains/NNS
on/IN
publicly/RB
traded/VBN
equity/NN
investments/NNS
of/IN
more/JJR
than/IN
$/$
70/CD
million/CD
./.
It/PRP
also/RB
hopes/VBZ
for/IN
ultimate/JJ
gains/NNS
of/IN
as/RB
much/JJ
as/IN
$/$
300/CD
million/CD
on/IN
equity/NN
investments/NNS
in/IN
buy-outs/NNS
and/CC
restructurings/NNS
./.
One/CD
trial/NN
balloon/NN
Mr./NNP
Spiegel/NNP
is/VBZ
said/VBN
to/TO
have/VB
floated/VBN
to/TO
investors/NNS
:/:
Columbia/NNP
might/MD
be/VB
broken/VBN
up/IN
,/,
as/IN
Mellon/NNP
Bank/NNP
was/VBD
split/VBN
into/IN
a/DT
good/JJ
bank/NN
and/CC
a/DT
bad/JJ
bank/NN
./.
But/CC
Columbia/NNP
's/POS
good/JJ
bank/NN
would/MD
be/VB
a/DT
regulated/VBN
thrift/NN
,/,
while/IN
the/DT
bad/JJ
bank/NN
would/MD
be/VB
a/DT
private/JJ
investment/NN
company/NN
,/,
holding/VBG
some/DT
of/IN
Columbia/NNP
's/POS
junk/NN
bonds/NNS
,/,
real/JJ
estate/NN
and/CC
equity/NN
investments/NNS
./.
Some/DT
think/VBP
Columbia/NNP
's/POS
thrift/NN
,/,
which/WDT
now/RB
is/VBZ
seeking/VBG
a/DT
new/JJ
chief/NN
operating/VBG
officer/NN
,/,
might/MD
be/VB
capitalized/VBN
at/IN
,/,
say/VB
$/$
300/CD
million/CD
,/,
and/CC
shopped/VBD
to/TO
a/DT
commercial/JJ
bank/NN
that/WDT
wants/VBZ
a/DT
California/NNP
presence/NN
./.
The/DT
thrift/NN
surely/RB
could/MD
be/VB
sold/VBN
for/IN
more/JJR
than/IN
the/DT
value/NN
of/IN
its/PRP$
equity/NN
,/,
financial/JJ
industry/NN
executives/NNS
say/VBP
./.
Meanwhile/RB
,/,
the/DT
bad/JJ
bank/NN
with/IN
the/DT
junk/NN
bonds/NNS
--/:
and/CC
some/DT
capital/NN
--/:
might/MD
be/VB
spun/VBN
off/IN
to/TO
Columbia/NNP
shareholders/NNS
,/,
including/VBG
Mr./NNP
Spiegel/NNP
,/,
who/WP
might/MD
then/RB
have/VB
a/DT
new/JJ
career/NN
,/,
investors/NNS
say/VBP
./.
It/PRP
is/VBZ
n't/RB
clear/JJ
how/WRB
much/JJ
a/DT
restructuring/NN
would/MD
help/VB
Columbia/NNP
stockholders/NNS
./.
But/CC
``/``
the/DT
concept/NN
is/VBZ
workable/JJ
./.
You/PRP
sell/VBP
the/DT
good/JJ
bank/NN
as/IN
an/DT
ongoing/JJ
operation/NN
and/CC
use/VBP
some/DT
of/IN
the/DT
proceeds/NNS
to/TO
capitalize/VB
the/DT
bad/JJ
bank/NN
,/,
''/''
says/VBZ
thrift/NN
specialist/NN
Lewis/NNP
Ranieri/NNP
of/IN
Ranieri/NNP
Associates/NNPS
in/IN
New/NNP
York/NNP
./.
Mr./NNP
Spiegel/NNP
's/POS
next/JJ
career/NN
move/NN
is/VBZ
a/DT
subject/NN
of/IN
speculation/NN
on/IN
Wall/NNP
Street/NNP
./.
Few/JJ
people/NNS
think/VBP
Mr./NNP
Spiegel/NNP
wants/VBZ
to/TO
run/VB
a/DT
bread-and-butter/JJ
thrift/NN
,/,
which/WDT
current/JJ
rules/NNS
would/MD
force/VB
Columbia/NNP
to/TO
become/VB
./.
``/``
They/PRP
are/VBP
n't/RB
really/RB
a/DT
thrift/NN
,/,
''/''
says/VBZ
Jonathan/NNP
Gray/NNP
,/,
a/DT
Sanford/NNP
C./NNP
Bernstein/NNP
analyst/NN
./.
Of/IN
course/NN
,/,
regulators/NNS
would/MD
have/VB
to/TO
approve/VB
Columbia/NNP
's/POS
reorganization/NN
./.
And/CC
some/DT
investment/NN
bankers/NNS
say/VBP
a/DT
restructuring/NN
is/VBZ
n't/RB
feasible/JJ
while/IN
the/DT
SEC/NNP
still/RB
is/VBZ
scrutinizing/VBG
Mr./NNP
Spiegel/NNP
's/POS
past/JJ
junk-bond/NN
trades/NNS
./.
Pauline/NNP
Yoshihashi/NNP
in/IN
Los/NNP
Angeles/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Columbia/NNP
Savings/NNP
&/CC
Loan/NNP
NYSE/NNP
;/:
Symbol/NN
:/:
CSV/NNP
Business/NN
:/:
Savings/NNS
and/CC
loan/NN
Year/NN
ended/VBD
Dec./NNP
31/CD
,/,
1988/CD
:/:
Net/JJ
income/NN
:/:
$/$
65/CD
million/CD
;/:
or/CC
$/$
1.49/CD
a/DT
share/NN
Third/JJ
quarter/NN
,/,
Sept./NNP
30/CD
,/,
1989/CD
:/:
Net/JJ
loss/NN
:/:
$/$
11.57/CD
a/DT
share/NN
vs./CC
net/NN
income/NN
:/:
37/CD
cents/NNS
a/DT
share/NN
Average/JJ
daily/JJ
trading/NN
volume/NN
:/:
83,206/CD
shares/NNS
Common/JJ
shares/NNS
outstanding/JJ
:/:
19.6/CD
million/CD
Note/VB
:/:
All/DT
per-share/JJ
figures/NNS
are/VBP
fully/RB
diluted/VBN
./.
Genetics/NNP
Institute/NNP
Inc./NNP
,/,
Cambridge/NNP
,/,
Mass./NNP
,/,
said/VBD
it/PRP
was/VBD
awarded/VBN
U.S./NNP
patents/NNS
for/IN
Interleukin-3/NN
and/CC
bone/NN
morphogenetic/JJ
protein/NN
./.
The/DT
patent/NN
for/IN
Interleukin-3/NN
covers/VBZ
materials/NNS
and/CC
methods/NNS
used/VBN
to/TO
make/VB
the/DT
human/JJ
blood/NN
cell/NN
growth/NN
factor/NN
via/IN
recombinant/JJ
DNA/NNP
technology/NN
./.
Sandoz/NNP
Ltd./NNP
has/VBZ
licensed/VBN
certain/JJ
manufacturing/NN
and/CC
marketing/NN
rights/NNS
for/IN
Interleukin-3/NN
from/IN
Genetics/NNP
Institute/NNP
and/CC
is/VBZ
conducting/VBG
preclinical/JJ
studies/NNS
with/IN
it/PRP
./.
Interleukin-3/NN
may/MD
help/VB
in/IN
treating/VBG
blood/NN
cell/NN
deficiencies/NNS
associated/VBN
with/IN
cancer/NN
treatment/NN
,/,
bone/NN
marrow/NN
transplants/NNS
and/CC
other/JJ
blood-cell/NN
disorders/NNS
,/,
Genetics/NNP
Institute/NNP
said/VBD
./.
The/DT
second/JJ
patent/NN
describes/VBZ
bone/NN
morphogenetic/JJ
protein-1/NN
,/,
a/DT
substance/NN
that/WDT
can/MD
induce/VB
formation/NN
of/IN
new/JJ
cartilage/NN
./.
The/DT
patent/NN
covers/VBZ
BMP-1/NN
type/NN
proteins/NNS
and/CC
pharmaceutical/JJ
compositions/NNS
and/CC
methods/NNS
for/IN
treating/VBG
bone/NN
or/CC
cartilage/NN
defects/NNS
,/,
Genetics/NNP
Institute/NNP
said/VBD
./.
The/DT
company/NN
added/VBD
that/IN
it/PRP
has/VBZ
filed/VBN
patent/NN
applications/NNS
``/``
on/IN
a/DT
large/JJ
number/NN
of/IN
different/JJ
BMP/NN
proteins/NNS
''/''
and/CC
the/DT
patent/NN
on/IN
BMP-1/NN
is/VBZ
the/DT
first/JJ
it/PRP
has/VBZ
received/VBN
./.
BMP/NN
products/NNS
may/MD
be/VB
useful/JJ
in/IN
fracture/NN
healing/NN
and/CC
in/IN
treating/VBG
bone/NN
loss/NN
associated/VBN
with/IN
periodontal/JJ
disease/NN
and/CC
certain/JJ
cancers/NNS
,/,
the/DT
company/NN
said/VBD
./.
The/DT
Bush/NNP
administration/NN
's/POS
nomination/NN
of/IN
Clarence/NNP
Thomas/NNP
to/TO
a/DT
seat/NN
on/IN
the/DT
federal/JJ
appeals/NNS
court/NN
here/RB
received/VBD
a/DT
blow/NN
this/DT
week/NN
when/WRB
the/DT
American/NNP
Bar/NNP
Association/NNP
gave/VBD
Mr./NNP
Thomas/NNP
only/RB
a/DT
``/``
qualified/JJ
''/''
rating/NN
,/,
rather/RB
than/IN
``/``
well/RB
qualified/VBN
./.
''/''
People/NNS
familiar/JJ
with/IN
the/DT
Senate/NNP
Judiciary/NNP
Committee/NNP
,/,
which/WDT
will/MD
vote/VB
on/IN
the/DT
nomination/NN
,/,
said/VBD
some/DT
liberal/JJ
members/NNS
of/IN
the/DT
panel/NN
are/VBP
likely/JJ
to/TO
question/VB
the/DT
ABA/NNP
rating/NN
in/IN
hearings/NNS
on/IN
the/DT
matter/NN
./.
Mr./NNP
Thomas/NNP
,/,
currently/RB
chairman/NN
of/IN
the/DT
Equal/NNP
Employment/NNP
Opportunity/NNP
Commission/NNP
,/,
would/MD
add/VB
another/DT
conservative/JJ
voice/NN
to/TO
the/DT
closely/RB
divided/VBN
court/NN
./.
Groups/NNS
have/VBP
accused/VBN
him/PRP
of/IN
advocating/VBG
policies/NNS
that/WDT
narrowed/VBD
rights/NNS
of/IN
older/JJR
workers/NNS
and/CC
of/IN
ignoring/VBG
discrimination/NN
by/IN
large/JJ
companies/NNS
./.
Fourteen/CD
members/NNS
of/IN
the/DT
House/NNP
with/IN
jurisdiction/NN
over/IN
the/DT
EEOC/NNP
have/VBP
said/VBN
they/PRP
oppose/VBP
Mr./NNP
Thomas/NNP
's/POS
nomination/NN
because/IN
of/IN
``/``
serious/JJ
questions/NNS
about/IN
his/PRP$
judgment/NN
respect/NN
for/IN
the/DT
law/NN
./.
''/''
A/DT
senior/JJ
Justice/NNP
Department/NNP
official/NN
,/,
however/RB
,/,
said/VBD
the/DT
administration/NN
is/VBZ
n't/RB
worried/VBN
about/IN
the/DT
ABA/NNP
rating/NN
./.
``/``
We/PRP
're/VBP
pleased/VBN
the/DT
ABA/NNP
rated/VBD
him/PRP
qualified/VBN
,/,
''/''
David/NNP
Runkel/NNP
,/,
the/DT
department/NN
's/POS
chief/NN
spokesman/NN
,/,
said/VBD
in/IN
an/DT
interview/NN
./.
The/DT
ABA/NNP
gives/VBZ
a/DT
``/``
qualified/VBN
''/''
rating/VBG
to/TO
nominees/NNS
it/PRP
believes/VBZ
would/MD
perform/VB
``/``
satisfactorily/RB
''/''
on/IN
the/DT
bench/NN
./.
In/IN
contrast/NN
,/,
the/DT
lawyers/NNS
'/POS
association/NN
gives/VBZ
a/DT
``/``
well/RB
qualified/VBN
''/''
rating/NN
to/TO
those/DT
``/``
regarded/VBN
as/IN
one/CD
of/IN
the/DT
best/JJS
available/JJ
for/IN
the/DT
vacancy/NN
./.
''/''
Metallgesellschaft/NNP
AG/NNP
said/VBD
it/PRP
agreed/VBD
to/TO
acquire/VB
51/CD
%/NN
of/IN
Lentjes/NNP
AG/NNP
from/IN
the/DT
Ferdinand/NNP
Lentjes/NNP
Foundation/NNP
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Metallgesellschaft/NN
,/,
a/DT
diversified/JJ
Frankfurt/NNP
,/,
West/NNP
Germany-based/JJ
metals/NNS
group/NN
,/,
said/VBD
it/PRP
is/VBZ
buying/VBG
the/DT
stake/NN
in/IN
the/DT
specialized/VBN
engineering/NN
company/NN
to/TO
expand/VB
its/PRP$
production/NN
of/IN
environmental/JJ
supplies/NNS
for/IN
power/NN
plants/NNS
./.
Lentjes/NNP
'/POS
product/NN
mix/NN
of/IN
specialized/VBN
boilers/NNS
and/CC
pipes/NNS
provides/VBZ
a/DT
good/JJ
fit/NN
with/IN
its/PRP$
own/JJ
Lurgi/NNP
G.m.b/NNP
./.
H./NN
plant/NN
engineering/VBG
unit/NN
,/,
the/DT
company/NN
said/VBD
./.
The/DT
move/NN
is/VBZ
part/NN
of/IN
a/DT
strategy/NN
to/TO
focus/VB
on/IN
its/PRP$
core/NN
metals/NNS
trading/NN
,/,
processing/NN
and/CC
plant/NN
engineering/NN
activities/NNS
while/IN
shedding/VBG
peripheral/JJ
units/NNS
,/,
the/DT
company/NN
said/VBD
./.
Lentjes/NNP
had/VBD
1988/CD
sales/NNS
of/IN
800/CD
million/CD
marks/NNS
$/$
434.4/CD
million/CD
a/DT
current/JJ
order/NN
backlog/NN
of/IN
2.5/CD
billion/CD
marks/NNS
./.
The/DT
sale/NN
comes/VBZ
in/IN
place/NN
of/IN
a/DT
planned/VBN
initial/JJ
public/JJ
offering/NN
of/IN
Lentjes/NNP
stock/NN
./.
A/DT
plan/NN
to/TO
bring/VB
the/DT
stock/NN
to/TO
market/NN
before/IN
year/NN
end/NN
apparently/RB
was/VBD
upset/VBN
by/IN
the/DT
recent/JJ
weakness/NN
of/IN
Frankfurt/NNP
share/NN
prices/NNS
./.
The/DT
U.S./NNP
International/NNP
Trade/NNP
Commission/NNP
issued/VBD
preliminary/JJ
rulings/NNS
under/IN
the/DT
U.S./NNP
anti-dumping/JJ
act/NN
that/IN
imports/NNS
of/IN
sweaters/NNS
from/IN
Hong/NNP
Kong/NNP
,/,
Taiwan/NNP
and/CC
South/NNP
Korea/NNP
may/MD
be/VB
injuring/VBG
a/DT
domestic/JJ
industry/NN
./.
Because/IN
of/IN
the/DT
rulings/NNS
,/,
the/DT
Commerce/NNP
Department/NNP
will/MD
continue/VB
to/TO
investigate/VB
complaints/NNS
by/IN
U.S./NNP
sweater/NN
makers/NNS
that/IN
the/DT
imports/NNS
are/VBP
reaching/VBG
the/DT
U.S./NNP
at/IN
unfairly/RB
low/JJ
prices/NNS
in/IN
violation/NN
of/IN
the/DT
U.S./NNP
anti-dumping/JJ
act/NN
./.
The/DT
law/NN
defines/VBZ
unfairly/RB
low/JJ
prices/NNS
as/IN
ones/NNS
below/IN
the/DT
cost/NN
of/IN
production/NN
or/CC
below/IN
prices/NNS
in/IN
an/DT
exporter/NN
's/POS
home/NN
market/NN
./.
ITC/NNP
officials/NNS
said/VBD
final/JJ
Commerce/NNP
Department/NNP
and/CC
ITC/NNP
rulings/NNS
wo/MD
n't/RB
come/VB
until/IN
next/JJ
March/NNP
or/CC
later/JJ
./.
If/IN
both/DT
agencies/NNS
find/VBP
violations/NNS
of/IN
the/DT
U.S./NNP
trade/NN
law/NN
,/,
the/DT
U.S./NNP
would/MD
assess/VB
penalty/NN
duties/NNS
on/IN
the/DT
imports/NNS
,/,
which/WDT
already/RB
are/VBP
subject/JJ
to/TO
import/NN
quotas/NNS
under/IN
bilateral/JJ
textile/NN
and/CC
apparel/NN
trade/NN
agreements/NNS
./.
Imports/NNS
of/IN
manmade-fiber/JJ
sweaters/NNS
in/IN
1988/CD
totaled/VBD
about/IN
$/$
405/CD
million/CD
from/IN
Taiwan/NNP
,/,
$/$
400/CD
million/CD
from/IN
South/NNP
Korea/NNP
and/CC
$/$
125/CD
million/CD
from/IN
Hong/NNP
Kong/NNP
,/,
according/VBG
to/TO
the/DT
ITC/NNP
./.
In/IN
another/DT
action/NN
,/,
the/DT
ITC/NNP
dismissed/VBD
anti-dumping/JJ
act/NN
complaints/NNS
filed/VBN
by/IN
Du/NNP
Pont/NNP
Co./NNP
of/IN
Wilmington/NNP
,/,
Del./NNP
,/,
against/IN
imports/NNS
of/IN
neoprene/NN
,/,
a/DT
type/NN
of/IN
synthetic/JJ
rubber/NN
,/,
from/IN
France/NNP
and/CC
West/NNP
Germany/NNP
./.
These/DT
imports/NNS
totaled/VBD
about/IN
$/$
17/CD
million/CD
last/JJ
year/NN
./.
Upjohn/NNP
Co./NNP
said/VBD
it/PRP
will/MD
offer/VB
an/DT
early/JJ
retirement/NN
package/NN
to/TO
as/RB
many/JJ
as/IN
1,100/CD
employees/NNS
in/IN
a/DT
cost-cutting/JJ
move/NN
expected/VBN
to/TO
result/VB
in/IN
a/DT
fourth-quarter/NN
charge/NN
./.
Upjohn/NNP
officials/NNS
said/VBD
they/PRP
could/MD
n't/RB
estimate/VB
the/DT
size/NN
of/IN
the/DT
charge/NN
until/IN
they/PRP
determine/VBP
which/WDT
employees/NNS
,/,
and/CC
how/WRB
many/JJ
,/,
will/MD
participate/VB
in/IN
the/DT
retirement/NN
plan/NN
./.
But/CC
the/DT
pharmaceutical/JJ
company/NN
said/VBD
it/PRP
``/``
anticipates/VBZ
the/DT
long-term/JJ
savings/NNS
resulting/VBG
from/IN
the/DT
plan/NN
's/POS
implementation/NN
will/MD
more/RBR
than/IN
offset/VBN
short-term/JJ
costs/NNS
./.
''/''
The/DT
program/NN
,/,
available/JJ
to/TO
Upjohn/NNP
employees/NNS
55/CD
years/NNS
old/JJ
or/CC
older/JJR
,/,
could/MD
increase/VB
an/DT
individual/NN
's/POS
retirement/NN
benefits/NNS
10/CD
%/NN
to/TO
20/CD
%/NN
./.
In/IN
addition/NN
,/,
Upjohn/NNP
is/VBZ
offering/VBG
a/DT
one-time/JJ
retirement/NN
bonus/NN
equal/JJ
to/TO
six/CD
months/NNS
of/IN
base/NN
pay/NN
./.
Chairman/NNP
Theodore/NNP
Cooper/NNP
called/VBD
the/DT
program/NN
part/NN
of/IN
the/DT
company/NN
's/POS
two-year/JJ
strategy/NN
to/TO
implement/VB
budget/NN
constraints/NNS
and/CC
``/``
an/DT
effective/JJ
headcount-control/NN
program/NN
./.
''/''
But/CC
some/DT
analysts/NNS
questioned/VBD
how/WRB
much/RB
of/IN
an/DT
impact/NN
the/DT
retirement/NN
package/NN
will/MD
have/VB
,/,
because/IN
few/JJ
jobs/NNS
will/MD
end/VB
up/IN
being/VBG
eliminated/VBN
./.
``/``
It/PRP
's/VBZ
a/DT
cosmetic/JJ
move/NN
,/,
''/''
said/VBD
Jonathan/NNP
S./NNP
Gelles/NNP
of/IN
Wertheim/NNP
Schroder/NNP
&/CC
Co/NNP
./.
According/VBG
to/TO
Upjohn/NNP
's/POS
estimates/NNS
,/,
only/RB
50/CD
%/NN
to/TO
60/CD
%/NN
of/IN
the/DT
1,100/CD
eligible/JJ
employees/NNS
will/MD
take/VB
advantage/NN
of/IN
the/DT
plan/NN
./.
Upjohn/NNP
further/RB
estimated/VBD
that/IN
about/IN
50/CD
%/NN
of/IN
the/DT
employees/NNS
who/WP
leave/VBP
for/IN
early/JJ
retirement/NN
may/MD
be/VB
replaced/VBN
./.
As/IN
a/DT
result/NN
,/,
Upjohn/NNP
will/MD
likely/RB
trim/VB
only/RB
about/IN
275/CD
to/TO
350/CD
of/IN
its/PRP$
more/JJR
than/IN
21,000/CD
jobs/NNS
world-wide/JJ
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
yesterday/NN
,/,
Upjohn/NNP
shares/NNS
rose/VBD
87.5/CD
cents/NNS
to/TO
$/$
38.875/CD
apiece/RB
./.
An/DT
Upjohn/NNP
spokesman/NN
said/VBD
he/PRP
had/VBD
``/``
heard/VBN
nothing/NN
''/''
to/TO
suggest/VB
the/DT
early/JJ
retirement/NN
package/NN
was/VBD
spurred/VBN
by/IN
shareholder/NN
pressure/NN
or/CC
a/DT
potential/JJ
bidder/NN
for/IN
the/DT
company/NN
,/,
which/WDT
occasionally/RB
has/VBZ
been/VBN
the/DT
target/NN
of/IN
takeover/NN
speculation/NN
./.
The/DT
company/NN
earlier/RBR
this/DT
year/NN
adopted/VBD
a/DT
shareholder-rights/JJ
plan/NN
to/TO
ward/VB
off/RP
unwanted/JJ
suitors/NNS
./.
The/DT
spokesman/NN
said/VBD
it/PRP
is/VBZ
the/DT
first/RB
early/JJ
retirement/NN
plan/NN
offered/VBN
under/IN
its/PRP$
two-year/JJ
cost-control/JJ
strategy/NN
./.
Earlier/JJR
staff-reduction/NN
moves/NNS
have/VBP
trimmed/VBN
about/IN
300/CD
jobs/NNS
,/,
the/DT
spokesman/NN
said/VBD
./.
INTER-TEL/NNP
Inc/NNP
./.
Chandler/NNP
,/,
Ariz./NNP
Jerry/NNP
Chapman/NNP
,/,
managing/VBG
director/NN
of/IN
WayMar/NNP
Associates/NNPS
,/,
was/VBD
elected/VBN
a/DT
director/NN
of/IN
this/DT
business/NN
telecommunications/NNS
software/NN
and/CC
systems/NNS
concern/NN
./.
He/PRP
increases/VBZ
the/DT
board/NN
to/TO
seven/CD
./.
``/``
Feeding/NNP
Frenzy/NNP
''/''
(/(
Henry/NNP
Holt/NNP
,/,
326/CD
pages/NNS
,/,
$/$
19.95/CD
a/DT
highly/RB
detailed/VBN
account/NN
of/IN
the/DT
Wedtech/NNP
scandal/NN
,/,
begins/VBZ
on/IN
a/DT
reassuring/JJ
note/NN
./.
Right/RB
up/IN
front/NN
in/IN
the/DT
preface/NN
,/,
co-author/NN
William/NNP
Sternberg/NNP
gives/VBZ
us/PRP
an/DT
example/NN
of/IN
his/PRP$
own/JJ
integrity/NN
./.
When/WRB
offered/VBN
a/DT
free/JJ
trip/NN
from/IN
the/DT
Bronx/NNP
,/,
Wedtech/NNP
's/POS
home/NN
,/,
to/TO
Washington/NNP
,/,
D.C./NNP
,/,
by/IN
one/CD
of/IN
Wedtech/NNP
's/POS
principals/NNS
,/,
he/PRP
tells/VBZ
the/DT
reader/NN
,/,
``/``
mindful/JJ
of/IN
accepting/VBG
anything/NN
of/IN
value/NN
from/IN
those/DT
I/PRP
was/VBD
writing/VBG
about/IN
,/,
I/PRP
declined/VBD
./.
''/''
Any/DT
question/NN
as/IN
to/TO
why/WRB
an/DT
author/NN
would/MD
believe/VB
this/DT
plaintive/JJ
,/,
high-minded/JJ
note/NN
of/IN
assurance/NN
is/VBZ
necessary/JJ
is/VBZ
answered/VBN
by/IN
reading/VBG
this/DT
book/NN
about/IN
sticky/JJ
fingers/NNS
and/CC
sweaty/JJ
scammers/NNS
./.
Bribe/NN
by/IN
bribe/NN
,/,
Mr./NNP
Sternberg/NNP
and/CC
his/PRP$
co-author/NN
,/,
Matthew/NNP
C./NNP
Harrison/NNP
Jr./NNP
,/,
lead/VBP
us/PRP
along/IN
the/DT
path/NN
Wedtech/NNP
traveled/VBD
,/,
from/IN
its/PRP$
inception/NN
as/IN
a/DT
small/JJ
manufacturing/VBG
company/NN
to/TO
the/DT
status/NN
of/IN
full-fledged/JJ
defense/NN
contractor/NN
,/,
entrusted/VBN
with/IN
the/DT
task/NN
of/IN
producing/VBG
vital/JJ
equipment/NN
for/IN
the/DT
Army/NNP
and/CC
Navy/NNP
./.
The/DT
book/NN
revolves/VBZ
around/IN
John/NNP
Mariotta/NNP
,/,
the/DT
founder/NN
of/IN
the/DT
company/NN
,/,
and/CC
Fred/NNP
Neuberger/NNP
,/,
who/WP
became/VBD
his/PRP$
partner/NN
soon/RB
after/IN
Wedtech/NNP
's/POS
creation/NN
./.
Although/IN
started/VBN
in/IN
1965/CD
,/,
Wedtech/NNP
did/VBD
n't/RB
really/RB
get/VB
rolling/VBG
until/IN
1975/CD
,/,
when/WRB
Mr./NNP
Neuberger/NNP
discovered/VBD
the/DT
federal/JJ
government/NN
's/POS
Section/NN
8/CD
A/NN
minority/NN
business/NN
program/NN
./.
This/DT
is/VBZ
a/DT
Johnson-era/NN
,/,
Great/NNP
Society/NNP
creation/NN
that/WDT
mandates/VBZ
certain/JJ
government/NN
contracts/NNS
be/VB
awarded/VBN
noncompetitively/RB
to/TO
minority/NN
businesses/NNS
./.
Mr./NNP
Neuberger/NNP
realized/VBD
that/IN
,/,
although/IN
of/IN
Italian/JJ
ancestry/NN
,/,
Mr./NNP
Mariotta/NNP
still/RB
could/MD
qualify/VB
as/IN
a/DT
minority/NN
person/NN
since/IN
he/PRP
was/VBD
born/VBN
in/IN
Puerto/NNP
Rico/NNP
./.
The/DT
two/CD
partners/NNS
merely/RB
had/VBD
to/TO
falsify/VB
the/DT
true/JJ
ownership/NN
of/IN
the/DT
corporation/NN
./.
Instead/RB
of/IN
50\/50/CD
it/PRP
became/VBD
,/,
on/IN
paper/NN
only/RB
,/,
two-thirds/NNS
Mariotta/NNP
,/,
one-third/NN
Neuberger/NNP
,/,
and/CC
they/PRP
were/VBD
in/IN
the/DT
program/NN
and/CC
off/IN
to/TO
the/DT
races/NNS
./.
Besides/IN
being/VBG
a/DT
``/``
minority-owned/JJ
company/NN
''/''
Wedtech/NNP
was/VBD
located/VBN
in/IN
the/DT
South/NNP
Bronx/NNP
,/,
a/DT
blighted/JJ
area/NN
,/,
made/VBN
famous/JJ
by/IN
Jimmy/NNP
Carter/NNP
in/IN
his/PRP$
1976/CD
presidential/JJ
campaign/NN
./.
The/DT
company/NN
plugged/VBD
itself/PRP
right/RB
into/IN
Carter/NNP
campaign/NN
rhetoric/NN
about/IN
rebuilding/VBG
the/DT
South/NNP
Bronx/NNP
and/CC
kept/VBD
using/VBG
the/DT
minority/NN
--/:
South/NNP
Bronx/NNP
angle/NN
through/IN
the/DT
Reagan/NNP
'80s/CD
./.
Starting/VBG
with/IN
Congressman/NNP
Mario/NNP
Biaggi/NNP
a/DT
jail/NN
sentence/NN
the/DT
company/NN
began/VBD
a/DT
career/NN
of/IN
bribing/VBG
federal/JJ
,/,
state/NN
and/CC
local/JJ
public/JJ
officials/NNS
and/CC
those/DT
close/JJ
to/TO
public/JJ
officials/NNS
,/,
right/RB
up/IN
to/TO
and/CC
including/VBG
E./NNP
Robert/NNP
Wallach/NNP
,/,
close/JJ
friend/NN
and/CC
adviser/NN
to/TO
former/JJ
Attorney/NNP
General/NNP
Ed/NNP
Meese/NNP
./.
Wedtech/NNP
did/VBD
n't/RB
just/RB
use/VB
old/JJ
fashioned/VBN
bribery/NN
./.
It/PRP
made/VBD
ample/JJ
use/NN
of/IN
the/DT
modern/JJ
techniques/NNS
of/IN
influence/NN
peddling/NN
,/,
retaining/VBG
politically/RB
connected/VBN
``/``
respectable/JJ
''/''
law/NN
firms/NNS
,/,
investment/NN
bankers/NNS
and/CC
political/JJ
consultants/NNS
,/,
including/VBG
Reagan/NNP
confidant/NN
Lyn/NNP
Nofzinger/NNP
./.
When/WRB
necessary/JJ
,/,
it/PRP
sought/VBD
and/CC
received/VBD
assistance/NN
from/IN
organized/VBN
crime/NN
./.
Sometimes/RB
the/DT
bribed/VBN
became/VBD
partners/NNS
in/IN
the/DT
company/NN
./.
Wedtech/NNP
management/NN
used/VBD
the/DT
merit/NN
system/NN
./.
If/IN
you/PRP
were/VBD
especially/RB
helpful/JJ
in/IN
a/DT
corrupt/JJ
scheme/NN
you/PRP
received/VBD
not/RB
just/RB
cash/NN
in/IN
a/DT
bag/NN
,/,
but/CC
equity/NN
./.
If/IN
you/PRP
were/VBD
not/RB
an/DT
effective/JJ
crook/NN
,/,
you/PRP
found/VBD
yourself/PRP
out/IN
in/IN
the/DT
cold/NN
,/,
a/DT
fate/NN
that/WDT
eventually/RB
befell/VBD
Mr./NNP
Mariotta/NNP
,/,
the/DT
firm/NN
's/POS
semiliterate/JJ
``/``
minority/NN
''/''
person/NN
./.
But/CC
despite/IN
the/DT
sensational/JJ
nature/NN
of/IN
the/DT
revelations/NNS
and/CC
the/DT
breezy/JJ
,/,
easy-to-read/JJ
tabloid/JJ
writing/NN
style/NN
,/,
``/``
Feeding/NNP
Frenzy/NNP
''/''
often/RB
falls/VBZ
short/JJ
of/IN
gripping/JJ
reading/NN
./.
None/NN
of/IN
the/DT
scams/NNS
show/VBP
much/JJ
ingenuity/NN
:/:
Auditors/NNS
found/VBD
crookery/NN
the/DT
first/JJ
day/NN
on/IN
the/DT
job/NN
./.
Wedtech/NNP
's/POS
scammers/NNS
simply/RB
bribed/VBD
them/PRP
to/TO
shut/VB
up/IN
./.
The/DT
scammers/NNS
themselves/PRP
were/VBD
garden-variety/NN
low/JJ
lifes/NNS
,/,
conspicuous/JJ
consumers/NNS
who/WP
wanted/VBD
big/JJ
houses/NNS
,/,
Mercedes/NNPS
cars/NNS
,/,
beautiful/JJ
women/NNS
,/,
expensive/JJ
clothes/NNS
./.
Among/IN
the/DT
lot/NN
of/IN
them/PRP
,/,
not/RB
one/CD
is/VBZ
wrestling/VBG
with/IN
good/JJ
and/CC
evil/JJ
,/,
or/CC
especially/RB
intelligent/JJ
or/CC
even/RB
temporarily/RB
insane/JJ
./.
The/DT
one/CD
character/NN
at/IN
least/JJS
somewhat/RB
interesting/JJ
was/VBD
Irving/NNP
Louis/NNP
Lobsenz/NNP
,/,
a/DT
pediatrician/NN
who/WP
changed/VBD
his/PRP$
name/NN
to/TO
Rusty/NNP
Kent/NNP
London/NNP
and/CC
became/VBD
a/DT
master/NN
gambler/NN
and/CC
author/NN
of/IN
a/DT
book/NN
on/IN
blackjack/NN
./.
He/PRP
enters/VBZ
the/DT
story/NN
toward/IN
the/DT
end/NN
,/,
just/RB
in/IN
time/NN
to/TO
get/VB
arrested/VBN
./.
Absorbed/VBN
in/IN
doling/VBG
out/IN
``/``
Feeding/NNP
Frenzy/NNP
's/POS
''/''
tidbits/NNS
,/,
the/DT
authors/NNS
gloss/VBP
over/IN
the/DT
root/NN
causes/NNS
of/IN
Wedtech/NNP
,/,
namely/RB
the/DT
Section/NN
8/CD
A/NN
federal/JJ
program/NN
under/IN
whose/WP$
auspices/NNS
the/DT
scandal/NN
took/VBD
place/NN
./.
They/PRP
do/VBP
at/IN
least/JJS
come/VB
around/IN
to/TO
saying/VBG
that/IN
the/DT
courts/NNS
might/MD
want/VB
to/TO
end/VB
``/``
rigid/JJ
affirmative/JJ
action/NN
programs/NNS
./.
''/''
Programs/NNS
like/IN
Section/NN
8/CD
A/NN
a/DT
little/RB
like/IN
leaving/VBG
gold/NN
in/IN
the/DT
street/NN
and/CC
then/RB
expressing/VBG
surprise/NN
when/WRB
thieves/NNS
walk/VBP
by/IN
to/TO
scoop/VB
it/PRP
up/IN
./.
Numerous/JJ
other/JJ
scandals/NNS
,/,
among/IN
them/PRP
the/DT
ones/NNS
at/IN
HUD/NNP
,/,
have/VBP
the/DT
same/JJ
characteristics/NNS
as/IN
Wedtech/NNP
./.
They/PRP
take/VBP
place/NN
in/IN
government/NN
programs/NNS
that/WDT
seem/VBP
tailor-made/JJ
for/IN
corruption/NN
./.
Why/WRB
are/VBP
programs/NNS
like/IN
this/DT
not/RB
eliminated/VBN
?/.
``/``
Feeding/NNP
Frenzy/NNP
''/''
does/VBZ
provide/VB
a/DT
few/JJ
clues/NNS
./.
In/IN
and/CC
around/IN
all/DT
levels/NNS
of/IN
government/NN
in/IN
the/DT
U.S./NNP
are/VBP
groups/NNS
of/IN
people/NNS
who/WP
can/MD
best/JJS
be/VB
described/VBN
as/IN
belonging/VBG
to/TO
a/DT
political/JJ
insider/NN
commercial/JJ
party/NN
./.
They/PRP
know/VBP
that/IN
whenever/WRB
government/NN
is/VBZ
redistributing/VBG
wealth/NN
,/,
regulating/VBG
commerce/NN
or/CC
maintaining/VBG
a/DT
large/JJ
defense/NN
establishment/NN
,/,
there/EX
is/VBZ
big/JJ
money/NN
to/TO
be/VB
made/VBN
in/IN
influencing/VBG
,/,
brokering/VBG
or/CC
selling/VBG
the/DT
processes/NNS
and/CC
decisions/NNS
of/IN
government/NN
./.
They/PRP
are/VBP
our/PRP$
version/NN
of/IN
the/DT
East/NNP
bloc/NN
's/POS
Nomenklatura/NN
and/CC
they/PRP
have/VBP
absolutely/RB
no/DT
wish/NN
to/TO
see/VB
anything/NN
change/VB
./.
How/WRB
many/JJ
government/NN
programs/NNS
and/CC
policies/NNS
exist/VBP
because/IN
they/PRP
line/VBP
the/DT
pockets/NNS
of/IN
political/JJ
insiders/NNS
?/.
This/DT
is/VBZ
the/DT
real/JJ
issue/NN
raised/VBN
by/IN
the/DT
Wedtech/NNP
scandal/NN
./.
Mr./NNP
Stern/NNP
was/VBD
chairman/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
the/DT
New/NNP
York/NNP
State/NNP
Urban/NNP
Development/NNP
Corp./NNP
,/,
1983-85/CD
./.
The/DT
Finnish/JJ
government/NN
and/CC
major/JJ
creditors/NNS
of/IN
bankrupt/JJ
shipyard/NN
Waertsilae/NNP
Marine/NNP
Industries/NNPS
Oy/NNP
agreed/VBD
in/IN
principle/NN
to/TO
form/VB
a/DT
new/JJ
company/NN
to/TO
complete/VB
most/JJS
of/IN
the/DT
troubled/JJ
shipyard/NN
's/POS
backlog/NN
of/IN
15/CD
ships/NNS
./.
The/DT
new/JJ
company/NN
will/MD
attempt/VB
to/TO
limit/VB
the/DT
shipyard/NN
's/POS
losses/NNS
,/,
participants/NNS
said/VBD
./.
``/``
The/DT
situation/NN
is/VBZ
that/IN
the/DT
bankruptcy/NN
court/NN
will/MD
get/VB
out/IN
of/IN
the/DT
shipbuilding/NN
business/NN
./.
Everything/NN
will/MD
be/VB
taken/VBN
over/IN
by/IN
the/DT
new/JJ
company/NN
,/,
''/''
said/VBD
Christian/NNP
Andersson/NNP
,/,
executive/JJ
vice/NN
president/NN
of/IN
Oy/NNP
Waertsilae/NNP
,/,
former/JJ
parent/NN
of/IN
Waertsilae/NNP
Marine/NNP
./.
Once/RB
its/PRP$
ownership/NN
is/VBZ
finalized/VBN
,/,
the/DT
new/JJ
company/NN
will/MD
open/VB
talks/NNS
with/IN
state-appointed/JJ
receivers/NNS
to/TO
buy/VB
or/CC
lease/VB
Waertsilae/NNP
Marine/NNP
's/POS
shipyard/NN
facilities/NNS
./.
Subcontractors/NNS
will/MD
be/VB
offered/VBN
a/DT
settlement/NN
and/CC
a/DT
swift/NN
transition/NN
to/TO
new/JJ
management/NN
is/VBZ
expected/VBN
to/TO
avert/VB
an/DT
exodus/NN
of/IN
skilled/JJ
workers/NNS
from/IN
Waertsilae/NNP
Marine/NNP
's/POS
two/CD
big/JJ
shipyards/NNS
,/,
government/NN
officials/NNS
said/VBD
./.
Under/IN
an/DT
accord/NN
signed/VBN
yesterday/NN
,/,
the/DT
government/NN
and/CC
Union/NNP
Bank/NNP
of/IN
Finland/NNP
would/MD
become/VB
major/JJ
shareholders/NNS
in/IN
the/DT
new/JJ
company/NN
,/,
each/DT
injecting/VBG
100/CD
million/CD
Finnish/JJ
markkaa/NN
$/$
23.5/CD
million/CD
Oy/NNP
Waertsilae/NNP
is/VBZ
to/TO
contribute/VB
200/CD
million/CD
markkaa/NN
,/,
most/JJS
of/IN
it/PRP
as/IN
subordinated/VBN
debt/NN
,/,
and/CC
take/VB
a/DT
minority/NN
stake/NN
in/IN
the/DT
new/JJ
company/NN
./.
Customers/NNS
holding/VBG
contracts/NNS
for/IN
Waertsilae/NNP
Marine/NNP
's/POS
undelivered/JJ
ships/NNS
are/VBP
expected/VBN
to/TO
subscribe/VB
most/JJS
of/IN
the/DT
remaining/VBG
170/CD
million/CD
markkaa/NN
in/IN
share/NN
capital/NN
,/,
government/NN
officials/NNS
said/VBD
./.
Waertsilae/NNP
Marine/NNP
's/POS
biggest/JJS
creditor/NN
is/VBZ
Miami-based/JJ
Carnival/NNP
Cruise/NNP
Lines/NNPS
Inc/NNP
./.
Carnival/NNP
,/,
which/WDT
has/VBZ
three/CD
ships/NNS
on/IN
order/NN
from/IN
Waertsilae/NNP
Marine/NNP
,/,
presented/VBD
claims/NNS
for/IN
$/$
1.5/CD
billion/CD
damages/NNS
in/IN
the/DT
bankruptcy/NN
court/NN
this/DT
week/NN
./.
Waertsilae/NNP
Marine/NNP
's/POS
bankruptcy/NN
proceedings/NNS
began/VBD
Tuesday/NNP
in/IN
a/DT
Helsinki/NNP
court/NN
./.
Its/PRP$
plans/NNS
to/TO
be/VB
acquired/VBN
dashed/VBN
,/,
Comprehensive/NNP
Care/NNP
Corp./NNP
said/VBD
it/PRP
plans/VBZ
to/TO
sell/VB
most/JJS
of/IN
its/PRP$
psychiatric/JJ
and/CC
drug/NN
abuse/NN
facilities/NNS
in/IN
California/NNP
and/CC
some/DT
other/JJ
assets/NNS
to/TO
pay/VB
its/PRP$
debt/NN
and/CC
provide/VB
working/JJ
capital/NN
./.
In/IN
all/DT
,/,
the/DT
company/NN
hopes/VBZ
to/TO
repay/VB
$/$
45/CD
million/CD
in/IN
debt/NN
through/IN
the/DT
sales/NNS
,/,
which/WDT
will/MD
completely/RB
discharge/VB
its/PRP$
secured/VBN
debt/NN
,/,
the/DT
company/NN
said/VBD
./.
In/IN
addition/NN
,/,
the/DT
company/NN
has/VBZ
replaced/VBN
its/PRP$
president/NN
and/CC
chief/NN
executive/NN
,/,
naming/VBG
W./NNP
James/NNP
Nichol/NNP
,/,
head/NN
of/IN
the/DT
company/NN
's/POS
contract/NN
health/NN
services/NNS
,/,
to/TO
succeed/VB
B./NNP
Lee/NNP
Karns/NNP
./.
Mr./NNP
Nichol/NNP
said/VBD
he/PRP
was/VBD
``/``
extremely/RB
disappointed/VBN
in/IN
the/DT
continuing/VBG
deterioration/NN
of/IN
the/DT
company/NN
's/POS
operations/NNS
while/IN
it/PRP
attempted/VBD
to/TO
conclude/VB
the/DT
reorganization/NN
during/IN
the/DT
past/JJ
four/CD
months/NNS
./.
''/''
Concurrent/JJ
with/IN
Mr./NNP
Nichol/NNP
's/POS
appointment/NN
,/,
Comprehensive/NNP
Care/NNP
moved/VBD
its/PRP$
corporate/JJ
headquarters/NNS
from/IN
Irvine/NNP
,/,
Calif./NNP
,/,
to/TO
St./NNP
Louis/NNP
,/,
where/WRB
the/DT
company/NN
maintained/VBD
its/PRP$
contract/NN
services/NNS
offices/NNS
./.
Mr./NNP
Karns/NNP
continues/VBZ
as/IN
chairman/NN
./.
Comprehensive/NNP
Care/NNP
had/VBD
agreed/VBN
to/TO
be/VB
acquired/VBN
by/IN
closely/RB
held/VBN
First/NNP
Hospital/NNP
Corp./NNP
of/IN
Norfolk/NNP
,/,
Va./NNP
,/,
but/CC
the/DT
sale/NN
sputtered/VBD
almost/RB
from/IN
the/DT
beginning/NN
and/CC
finally/RB
collapsed/VBD
last/JJ
week/NN
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
yesterday/NN
,/,
Comprehensive/NNP
Care/NNP
closed/VBD
at/IN
$/$
3.75/CD
a/DT
share/NN
,/,
up/RB
12.5/CD
cents/NNS
./.
Ralston/NNP
Purina/NNP
Co./NNP
reported/VBD
a/DT
47/CD
%/NN
decline/NN
in/IN
fourth-quarter/NN
earnings/NNS
,/,
reflecting/VBG
restructuring/NN
costs/NNS
as/RB
well/RB
as/IN
a/DT
more/RBR
difficult/JJ
pet/NN
food/NN
market/NN
./.
The/DT
St./NNP
Louis/NNP
company/NN
earned/VBD
$/$
45.2/CD
million/CD
,/,
or/CC
65/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
$/$
84.9/CD
million/CD
,/,
or/CC
$/$
1.24/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/JJR
./.
Sales/NNS
in/IN
the/DT
latest/JJS
period/NN
were/VBD
$/$
1.76/CD
billion/CD
,/,
a/DT
13/CD
%/NN
increase/NN
from/IN
last/JJ
year/NN
's/POS
$/$
1.55/CD
billion/CD
./.
For/IN
the/DT
year/NN
ended/VBD
Sept./NNP
30/CD
,/,
Ralston/NNP
earned/VBD
$/$
422.5/CD
million/CD
,/,
or/CC
$/$
6.44/CD
a/DT
share/NN
,/,
up/RB
8.9/CD
%/NN
from/IN
$/$
387.8/CD
million/CD
,/,
or/CC
$/$
5.63/CD
a/DT
share/NN
./.
This/DT
year/NN
's/POS
results/NNS
included/VBD
a/DT
gain/NN
of/IN
$/$
70.2/CD
million/CD
on/IN
the/DT
disposal/NN
of/IN
seafood/NN
operations/NNS
./.
Sales/NNS
for/IN
the/DT
full/JJ
year/NN
were/VBD
$/$
6.6/CD
billion/CD
,/,
up/RB
13/CD
%/NN
from/IN
$/$
5.8/CD
billion/CD
./.
Ralston/NNP
said/VBD
its/PRP$
restructuring/NN
costs/NNS
include/VBP
the/DT
phase-out/NN
of/IN
a/DT
battery/NN
facility/NN
in/IN
Greenville/NNP
,/,
N.C./NNP
,/,
the/DT
recent/JJ
closing/NN
of/IN
a/DT
Hostess/NNP
cake/NN
bakery/NN
in/IN
Cincinnati/NNP
and/CC
a/DT
reduction/NN
in/IN
staff/NN
throughout/IN
the/DT
company/NN
./.
The/DT
battery/NN
plant/NN
,/,
which/WDT
makes/VBZ
rechargeable/JJ
nickel/NN
cadmium/NN
and/CC
carbon/NN
zinc/NN
products/NNS
,/,
will/MD
be/VB
closed/VBN
over/IN
the/DT
next/JJ
year/NN
or/CC
so/RB
,/,
a/DT
spokesman/NN
said/VBD
./.
Ralston/NNP
attributed/VBD
its/PRP$
fourth-quarter/NN
slump/NN
partly/RB
to/TO
higher/JJR
costs/NNS
of/IN
ingredients/NNS
in/IN
the/DT
pet/NN
food/NN
business/NN
as/RB
well/RB
as/IN
competitive/JJ
pressures/NNS
,/,
which/WDT
required/VBD
higher/JJR
advertising/NN
spending/NN
./.
For/IN
the/DT
year/NN
,/,
pet/NN
food/NN
volume/NN
was/VBD
flat/JJ
,/,
the/DT
company/NN
said/VBD
./.
Its/PRP$
cereal/NN
division/NN
realized/VBD
higher/JJR
operating/VBG
profit/NN
on/IN
volume/NN
increases/NNS
,/,
but/CC
also/RB
spent/VBD
more/JJR
on/IN
promotion/NN
./.
The/DT
Continental/NNP
Baking/NNP
business/NN
benefited/VBD
from/IN
higher/JJR
margins/NNS
on/IN
bread/NN
and/CC
on/IN
increased/VBN
cake/NN
sales/NNS
,/,
it/PRP
added/VBD
./.
Ralston/NNP
said/VBD
its/PRP$
Eveready/NNP
battery/NN
unit/NN
was/VBD
hurt/VBN
by/IN
continuing/VBG
economic/JJ
problems/NNS
in/IN
South/NNP
America/NNP
./.
Ralston/NNP
shares/NNS
closed/VBD
yesterday/NN
at/IN
$/$
80.50/CD
,/,
off/IN
$/$
1/CD
,/,
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
Companies/NNS
listed/VBN
below/IN
reported/VBD
quarterly/JJ
profit/NN
substantially/RB
different/JJ
from/IN
the/DT
average/NN
of/IN
analysts/NNS
'/POS
estimates/NNS
./.
The/DT
companies/NNS
are/VBP
followed/VBN
by/IN
at/IN
least/JJS
three/CD
analysts/NNS
,/,
and/CC
had/VBD
a/DT
minimum/JJ
five-cent/JJ
change/NN
in/IN
actual/JJ
earnings/NNS
per/IN
share/NN
./.
Estimated/VBN
and/CC
actual/JJ
results/NNS
involving/VBG
losses/NNS
are/VBP
omitted/VBN
./.
The/DT
percent/NN
difference/NN
compares/VBZ
actual/JJ
profit/NN
with/IN
the/DT
30-day/JJ
estimate/NN
where/WRB
at/IN
least/JJS
three/CD
analysts/NNS
have/VBP
issues/NNS
forecasts/NNS
in/IN
the/DT
past/JJ
30/CD
days/NNS
./.
Otherwise/RB
,/,
actual/JJ
profit/NN
is/VBZ
compared/VBN
with/IN
the/DT
300-day/JJ
estimate/NN
./.
Source/NN
:/:
Zacks/NNP
Investment/NNP
Research/NNP
First/NNP
Chicago/NNP
Corp./NNP
said/VBD
it/PRP
completed/VBD
its/PRP$
$/$
55.1/CD
million/CD
cash-and-stock/JJ
acquisition/NN
of/IN
closely/RB
held/VBN
Ravenswood/NNP
Financial/NNP
Corp./NNP
,/,
another/DT
Chicago/NNP
bank/NN
holding/VBG
company/NN
./.
The/DT
record/NN
corn-buying/JJ
binge/NN
by/IN
the/DT
Soviet/NNP
Union/NNP
is/VBZ
causing/VBG
serious/JJ
bottlenecks/NNS
in/IN
the/DT
U.S./NNP
grain/NN
pipeline/NN
./.
The/DT
Soviet/JJ
purchases/NNS
are/VBP
so/RB
massive/JJ
that/IN
exporters/NNS
are/VBP
struggling/VBG
to/TO
find/VB
enough/JJ
river/NN
barges/NNS
and/CC
trains/NNS
to/TO
move/VB
the/DT
recently/RB
harvested/VBN
Midwest/NN
crop/NN
to/TO
ports/NNS
for/IN
loading/VBG
onto/IN
Soviet/JJ
ships/NNS
./.
River/NN
barge/NN
rates/NNS
have/VBP
soared/VBN
40/CD
%/NN
this/DT
fall/NN
from/IN
a/DT
year/NN
earlier/JJR
./.
Railroad/NN
companies/NNS
and/CC
some/DT
ports/NNS
are/VBP
reaping/VBG
a/DT
sudden/JJ
windfall/NN
of/IN
business/NN
./.
And/CC
some/DT
grain/NN
analysts/NNS
are/VBP
predicting/VBG
that/IN
corn/NN
prices/NNS
might/MD
gyrate/VB
this/DT
month/NN
as/IN
exporters/NNS
scrounge/VBP
to/TO
find/VB
enough/RB
of/IN
the/DT
crop/NN
to/TO
meet/VB
their/PRP$
obligations/NNS
to/TO
the/DT
Soviets/NNPS
./.
The/DT
Soviet/NNP
Union/NNP
bought/VBD
roughly/RB
310/CD
million/CD
bushels/NNS
of/IN
U.S./NNP
corn/NN
in/IN
October/NNP
,/,
which/WDT
is/VBZ
the/DT
most/RBS
ever/RB
sold/VBN
to/TO
the/DT
Soviet/NNP
Union/NNP
in/IN
one/CD
month/NN
from/IN
the/DT
U.S/NNP
./.
The/DT
Soviet/NNP
Union/NNP
wants/VBZ
much/JJ
of/IN
it/PRP
delivered/VBN
by/IN
January/NNP
,/,
which/WDT
would/MD
be/VB
a/DT
strain/NN
in/IN
most/JJS
years/NNS
./.
But/CC
it/PRP
is/VBZ
particularly/RB
difficult/JJ
this/DT
autumn/NN
because/IN
of/IN
low/JJ
water/NN
levels/NNS
on/IN
the/DT
Mississippi/NNP
River/NNP
,/,
on/IN
which/WDT
flows/VBZ
much/JJ
of/IN
the/DT
U.S./NNP
corn/NN
that/WDT
is/VBZ
shipped/VBN
overseas/RB
./.
``/``
We/PRP
are/VBP
shipping/VBG
the/DT
most/JJS
corn/NN
in/IN
that/DT
short/JJ
of/IN
time/NN
period/NN
to/TO
one/CD
customer/NN
on/IN
record/NN
,/,
''/''
said/VBD
William/NNP
Dunton/NNP
,/,
a/DT
U.S./NNP
Agriculture/NNP
Department/NNP
transportation/NN
expert/NN
./.
``/``
It/PRP
is/VBZ
going/VBG
to/TO
be/VB
real/RB
tight/JJ
./.
''/''
Because/IN
of/IN
persistent/JJ
dry/JJ
weather/NN
in/IN
the/DT
northern/JJ
Plains/NNS
,/,
the/DT
water/NN
level/NN
on/IN
the/DT
upper/JJ
section/NN
of/IN
the/DT
Mississippi/NNP
River/NNP
is/VBZ
so/RB
low/JJ
that/IN
many/JJ
river/NN
operators/NNS
are/VBP
already/RB
trimming/VBG
the/DT
number/NN
of/IN
barges/NNS
their/PRP$
tows/NNS
push/VBP
at/IN
one/CD
time/NN
./.
In/IN
a/DT
few/JJ
weeks/NNS
,/,
many/JJ
barges/NNS
probably/RB
wo/MD
n't/RB
be/VB
able/JJ
to/TO
operate/VB
fully/RB
loaded/VBN
south/RB
of/IN
St./NNP
Louis/NNP
because/IN
the/DT
U.S./NNP
Army/NNP
Corps/NNP
of/IN
Engineers/NNPS
is/VBZ
beginning/VBG
to/TO
reduce/VB
the/DT
flow/NN
of/IN
the/DT
Missouri/NNP
River/NNP
,/,
which/WDT
feeds/VBZ
into/IN
the/DT
Mississippi/NNP
River/NNP
./.
The/DT
Army/NNP
Corps/NNP
is/VBZ
cutting/VBG
the/DT
flow/NN
of/IN
the/DT
Missouri/NNP
River/NNP
about/IN
two/CD
weeks/NNS
earlier/JJR
than/IN
normal/JJ
because/IN
of/IN
low/JJ
water/NN
levels/NNS
in/IN
the/DT
reservoirs/NNS
that/WDT
feed/VBP
it/PRP
./.
Barge/NN
rates/NNS
on/IN
the/DT
Mississippi/NNP
River/NNP
sank/VBD
yesterday/NN
on/IN
speculation/NN
that/IN
widespread/JJ
rain/NN
this/DT
week/NN
in/IN
the/DT
Midwest/NN
might/MD
temporarily/RB
alleviate/VB
the/DT
situation/NN
./.
But/CC
the/DT
Army/NNP
Corps/NNP
of/IN
Engineers/NNPS
expects/VBZ
the/DT
river/NN
level/NN
to/TO
continue/VB
falling/VBG
this/DT
month/NN
./.
At/IN
St./NNP
Louis/NNP
,/,
the/DT
water/NN
level/NN
of/IN
the/DT
Mississippi/NNP
River/NNP
is/VBZ
already/RB
6.5/CD
feet/NNS
below/IN
normal/JJ
and/CC
it/PRP
could/MD
drop/VB
an/DT
additional/JJ
2.5/CD
feet/NNS
when/WRB
the/DT
flow/NN
of/IN
the/DT
Missouri/NNP
River/NNP
is/VBZ
slowed/VBN
,/,
an/DT
Army/NNP
Corps/NNP
spokesman/NN
said/VBD
./.
Similar/JJ
levels/NNS
hamstrung/VBP
barge/NN
shipments/NNS
last/JJ
year/NN
in/IN
the/DT
wake/NN
of/IN
the/DT
worst/JJS
drought/NN
in/IN
50/CD
years/NNS
./.
So/IN
far/RB
,/,
the/DT
grain/NN
industry/NN
's/POS
budding/VBG
logistical/JJ
problems/NNS
have/VBP
n't/RB
been/VBN
a/DT
major/JJ
factor/NN
in/IN
the/DT
trading/NN
of/IN
corn/NN
contracts/NNS
at/IN
the/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
./.
Many/JJ
grain/NN
processors/NNS
and/CC
exporters/NNS
use/VBP
the/DT
price/NN
of/IN
the/DT
corn/NN
futures/NNS
contracts/NNS
traded/VBN
there/RB
to/TO
calculate/VB
the/DT
price/NN
they/PRP
offer/VBP
to/TO
buy/VB
corn/NN
from/IN
farmers/NNS
./.
At/IN
the/DT
Board/NNP
of/IN
Trade/NNP
yesterday/NN
the/DT
price/NN
of/IN
the/DT
corn/NN
contract/NN
for/IN
December/NNP
delivery/NN
slipped/VBD
3.5/CD
cents/NNS
a/DT
bushel/NN
to/TO
settle/VB
at/IN
$/$
2.375/CD
a/DT
bushel/NN
./.
Corn/NN
prices/NNS
have/VBP
been/VBN
sluggish/JJ
this/DT
fall/NN
despite/IN
the/DT
huge/JJ
Soviet/JJ
orders/NNS
because/IN
the/DT
harvest/NN
has/VBZ
allowed/VBN
farmers/NNS
to/TO
rebuild/VB
the/DT
stockpiles/NNS
depleted/VBN
by/IN
the/DT
1988/CD
drought/NN
./.
With/IN
the/DT
harvest/NN
winding/VBG
down/IN
,/,
however/RB
,/,
some/DT
analysts/NNS
are/VBP
speculating/VBG
that/IN
prices/NNS
might/MD
jump/VB
in/IN
some/DT
regions/NNS
as/IN
U.S./NNP
exporters/NNS
try/VBP
to/TO
gather/VB
the/DT
corn/NN
they/PRP
are/VBP
obligated/VBN
to/TO
deliver/VB
./.
Farmers/NNS
are/VBP
in/IN
the/DT
best/JJS
position/NN
of/IN
many/JJ
years/NNS
to/TO
push/VB
up/IN
corn/NN
prices/NNS
./.
Because/IN
the/DT
drought/NN
reduced/VBD
U.S./NNP
stockpiles/NNS
,/,
they/PRP
have/VBP
more/JJR
than/IN
enough/JJ
storage/NN
space/NN
for/IN
their/PRP$
new/JJ
crop/NN
,/,
and/CC
that/DT
permits/VBZ
them/PRP
to/TO
wait/VB
for/IN
prices/NNS
to/TO
rise/VB
./.
In/IN
parts/NNS
of/IN
Iowa/NNP
,/,
for/IN
example/NN
,/,
some/DT
grain/NN
elevators/NNS
are/VBP
offering/VBG
farmers/NNS
$/$
2.15/CD
a/DT
bushel/NN
for/IN
corn/NN
./.
Many/JJ
farmers/NNS
probably/RB
would/MD
n't/RB
sell/VB
until/IN
prices/NNS
rose/VBD
at/IN
least/JJS
20/CD
cents/NNS
a/DT
bushel/NN
,/,
said/VBD
Lyle/NNP
Reed/NNP
,/,
president/NN
of/IN
Chicago/NNP
Central/NNP
&/CC
Pacific/NNP
Railroad/NNP
Co./NNP
of/IN
Waterloo/NNP
,/,
Iowa/NNP
./.
It/PRP
is/VBZ
n't/RB
clear/JJ
,/,
however/RB
,/,
who/WP
would/MD
win/VB
a/DT
waiting/VBG
game/NN
./.
Although/IN
U.S./NNP
corn/NN
stockpiles/NNS
shrank/VBD
by/IN
roughly/RB
half/DT
in/IN
the/DT
wake/NN
of/IN
the/DT
drought/NN
,/,
the/DT
Agriculture/NNP
Department/NNP
projects/VBZ
that/IN
nearly/RB
one-fifth/NN
of/IN
the/DT
harvest/NN
will/MD
still/RB
be/VB
in/IN
storage/NN
before/IN
the/DT
1990/CD
corn/NN
harvest/NN
begins/VBZ
./.
Some/DT
analysts/NNS
are/VBP
worried/VBN
that/IN
reports/NNS
of/IN
the/DT
grain/NN
industry/NN
's/POS
problems/NNS
might/MD
spark/VB
investors/NNS
to/TO
begin/VB
buying/VBG
corn/NN
futures/NNS
contracts/NNS
--/:
only/RB
to/TO
see/VB
little/JJ
appreciation/NN
./.
``/``
The/DT
public/NN
is/VBZ
buying/VBG
the/DT
market/NN
when/WRB
in/IN
reality/NN
there/EX
is/VBZ
plenty/NN
of/IN
grain/NN
to/TO
be/VB
shipped/VBN
,/,
''/''
said/VBD
Bill/NNP
Biedermann/NNP
,/,
Allendale/NNP
Inc./NNP
research/NN
director/NN
./.
Although/IN
much/JJ
of/IN
this/DT
country/NN
's/POS
export/NN
corn/NN
goes/VBZ
to/TO
New/NNP
Orleans/NNP
by/IN
barge/NN
,/,
it/PRP
is/VBZ
possible/JJ
for/IN
exporters/NNS
to/TO
sidestep/VB
the/DT
Mississippi/NNP
River/NNP
by/IN
shipping/VBG
a/DT
larger-than-normal/JJ
amount/NN
of/IN
corn/NN
by/IN
train/NN
to/TO
the/DT
port/NN
./.
Ports/NNS
in/IN
the/DT
Great/NNP
Lakes/NNPS
and/CC
Atlantic/NNP
Coast/NNP
can/MD
also/RB
relieve/VB
pressure/NN
on/IN
New/NNP
Orleans/NNP
./.
One/CD
railroad/NN
,/,
for/IN
example/NN
,/,
is/VBZ
already/RB
increasing/VBG
its/PRP$
grain/NN
hauling/VBG
service/NN
from/IN
Indiana/NNP
to/TO
Baltimore/NNP
./.
And/CC
it/PRP
is/VBZ
n't/RB
clear/JJ
that/IN
the/DT
Soviet/NNP
Union/NNP
will/MD
stay/VB
on/IN
its/PRP$
record/NN
buying/VBG
pace/NN
./.
The/DT
Soviet/JJ
orders/NNS
were/VBD
compressed/VBN
into/IN
the/DT
month/NN
of/IN
October/NNP
because/IN
of/IN
delays/NNS
./.
The/DT
Soviet/NNP
Union/NNP
usually/RB
begins/VBZ
buying/VBG
U.S./NNP
crops/NNS
earlier/JJR
in/IN
the/DT
fall/NN
./.
But/CC
its/PRP$
purchases/NNS
apparently/RB
were/VBD
delayed/VBN
by/IN
a/DT
reorganization/NN
of/IN
its/PRP$
agricultural/JJ
bureaucracy/NN
as/RB
well/RB
as/IN
budget/NN
problems/NNS
./.
In/IN
other/JJ
commodity/NN
markets/NNS
yesterday/NN
:/:
ENERGY/NN
:/:
Crude/JJ
oil/NN
futures/NNS
prices/NNS
increased/VBD
in/IN
moderate/JJ
trading/NN
,/,
but/CC
much/JJ
of/IN
the/DT
action/NN
was/VBD
in/IN
heating/NN
oil/NN
./.
Prices/NNS
rose/VBD
on/IN
the/DT
news/NN
that/IN
a/DT
sizable/JJ
West/JJ
German/JJ
refinery/NN
was/VBD
damaged/VBN
in/IN
a/DT
fire/NN
,/,
tightening/VBG
an/DT
already/RB
tight/JJ
European/JJ
market/NN
./.
Heating/NN
oil/NN
for/IN
November/NNP
delivery/NN
ended/VBD
at/IN
58.64/CD
cents/NNS
a/DT
gallon/NN
,/,
up/RB
one/CD
cent/NN
on/IN
the/DT
New/NNP
York/NNP
Mercantile/NNP
Exchange/NNP
./.
West/NNP
Texas/NNP
Intermediate/NNP
for/IN
December/NNP
delivery/NN
advanced/VBD
22/CD
cents/NNS
to/TO
$/$
19.94/CD
a/DT
barrel/NN
./.
Gasoline/NN
futures/NNS
continued/VBD
a/DT
sell-off/NN
that/WDT
began/VBD
Monday/NNP
./.
PRECIOUS/NNP
METALS/NNPS
:/:
Futures/NNP
prices/NNS
eased/VBD
as/RB
increased/VBN
stability/NN
and/CC
strength/NN
came/VBD
into/IN
the/DT
securities/NNS
markets/NNS
./.
December/NNP
delivery/NN
gold/NN
fell/VBD
$/$
3.20/CD
an/DT
ounce/NN
to/TO
$/$
377.60/CD
./.
December/NNP
silver/NN
declined/VBD
6.50/CD
cents/NNS
an/DT
ounce/NN
to/TO
$/$
5.2180/CD
./.
January/NNP
platinum/NN
was/VBD
down/IN
$/$
5.70/CD
an/DT
ounce/NN
at/IN
$/$
494.50/CD
./.
Precious/JJ
metals/NNS
,/,
gold/NN
in/IN
particular/JJ
,/,
currently/RB
are/VBP
being/VBG
influenced/VBN
more/JJR
by/IN
stock/NN
market/NN
gyrations/NNS
than/IN
the/DT
dollar/NN
as/IN
traders/NNS
seek/VBP
greater/JJR
investment/NN
stability/NN
,/,
according/VBG
to/TO
William/NNP
O'Neill/NNP
,/,
vice/NN
president/NN
of/IN
research/NN
at/IN
Elders/NNPS
Futures/NNP
in/IN
New/NNP
York/NNP
./.
``/``
The/DT
recent/JJ
rally/NN
in/IN
precious/JJ
metals/NNS
was/VBD
a/DT
result/NN
of/IN
uncertainty/NN
and/CC
volatility/NN
in/IN
equities/NNS
,/,
''/''
he/PRP
said/VBD
./.
Yesterday/NN
,/,
the/DT
stock/NN
market/NN
rose/VBD
strongly/RB
,/,
creating/VBG
a/DT
more/JJR
defensive/JJ
attitude/NN
among/IN
precious/JJ
metals/NNS
traders/NNS
,/,
he/PRP
said/VBD
./.
Silver/NN
and/CC
platinum/NN
,/,
which/WDT
have/VBP
more/JJR
of/IN
an/DT
industrial/JJ
nature/NN
than/IN
gold/NN
,/,
were/VBD
even/RB
weaker/JJR
,/,
he/PRP
said/VBD
./.
Silver/NN
is/VBZ
also/RB
under/IN
pressure/NN
of/IN
``/``
extremely/RB
high/JJ
''/''
inventories/NNS
in/IN
warehouses/NNS
of/IN
the/DT
Commodity/NNP
Exchange/NNP
,/,
he/PRP
said/VBD
./.
Yesterday/NN
,/,
these/DT
stocks/NNS
rose/VBD
by/IN
170,262/CD
ounces/NNS
to/TO
a/DT
record/NN
of/IN
226,570,380/CD
ounces/NNS
,/,
according/VBG
to/TO
an/DT
exchange/NN
spokesman/NN
./.
COPPER/NNP
:/:
Futures/NNS
prices/NNS
partially/RB
recovered/VBD
Monday/NNP
's/POS
declines/NNS
because/IN
Chilean/JJ
miners/NNS
voted/VBD
to/TO
strike/VB
./.
The/DT
December/NNP
contract/NN
rose/VBD
1.20/CD
cents/NNS
a/DT
pound/NN
to/TO
$/$
1.14/CD
./.
In/IN
Chile/NNP
,/,
workers/NNS
at/IN
two/CD
copper/NN
mines/NNS
,/,
Los/NNP
Bronces/NNP
and/CC
El/NNP
Soldado/NNP
,/,
which/WDT
belong/VBP
to/TO
the/DT
Exxon-owned/JJ
Minera/NNP
Disputada/NNP
,/,
yesterday/NN
voted/VBD
to/TO
begin/VB
a/DT
full/JJ
strike/NN
tomorrow/NN
,/,
an/DT
analyst/NN
said/VBD
./.
Reasons/NNS
for/IN
the/DT
walkout/NN
,/,
the/DT
analyst/NN
said/VBD
,/,
included/VBD
a/DT
number/NN
of/IN
procedural/JJ
issues/NNS
,/,
such/JJ
as/IN
a/DT
right/NN
to/TO
strike/VB
./.
The/DT
analyst/NN
noted/VBD
that/IN
also/RB
inherent/JJ
in/IN
all/DT
metal/NN
markets/NNS
was/VBD
a/DT
sympathetic/JJ
reaction/NN
to/TO
stocks/NNS
./.
In/IN
the/DT
case/NN
of/IN
copper/NN
,/,
he/PRP
said/VBD
,/,
the/DT
upbeat/JJ
mood/NN
of/IN
stocks/NNS
was/VBD
reflected/VBN
in/IN
demand/NN
for/IN
futures/NNS
contracts/NNS
because/IN
a/DT
stronger/JJR
economy/NN
means/VBZ
greater/JJR
buying/NN
interest/NN
for/IN
the/DT
metal/NN
./.
Also/RB
contributing/VBG
to/TO
the/DT
firmness/NN
in/IN
copper/NN
,/,
the/DT
analyst/NN
noted/VBD
,/,
was/VBD
a/DT
report/NN
by/IN
Chicago/NNP
purchasing/VBG
agents/NNS
,/,
which/WDT
precedes/VBZ
the/DT
full/JJ
purchasing/VBG
agents/NNS
'/POS
report/NN
that/WDT
is/VBZ
due/JJ
out/IN
today/NN
and/CC
gives/VBZ
an/DT
indication/NN
of/IN
what/WP
the/DT
full/JJ
report/NN
might/MD
hold/VB
./.
The/DT
Purchasing/NNP
Management/NNP
Association/NNP
of/IN
Chicago/NNP
's/POS
October/NNP
index/NN
rose/VBD
to/TO
51.6/CD
%/NN
after/IN
three/CD
previous/JJ
months/NNS
of/IN
readings/NNS
below/IN
50/CD
%/NN
./.
The/DT
September/NNP
index/NN
was/VBD
47.1/CD
%/NN
./.
A/DT
reading/NN
below/IN
50/CD
%/NN
generally/RB
indicates/VBZ
a/DT
slowing/NN
in/IN
the/DT
industrial/JJ
sector/NN
of/IN
the/DT
economy/NN
,/,
while/IN
a/DT
reading/NN
above/IN
50/CD
%/NN
points/VBZ
to/TO
expansion/NN
./.
The/DT
Chicago/NNP
report/NN
raised/VBD
the/DT
possibility/NN
that/IN
the/DT
October/NNP
survey/NN
of/IN
the/DT
National/NNP
Association/NNP
of/IN
Purchasing/NNP
Management/NNP
would/MD
also/RB
show/VB
a/DT
reading/NN
above/IN
50/CD
%/NN
./.
NCR/NNP
Corp./NNP
unveiled/VBD
two/CD
models/NNS
of/IN
its/PRP$
Tower/NNP
line/NN
of/IN
midrange/JJ
computers/NNS
and/CC
introduced/VBD
advanced/VBN
networking/NN
software/NN
to/TO
allow/VB
the/DT
Tower/NNP
family/NN
to/TO
operate/VB
as/IN
a/DT
central/JJ
hub/NN
in/IN
a/DT
network/NN
of/IN
computers/NNS
./.
The/DT
new/JJ
software/NN
is/VBZ
based/VBN
on/IN
Novell/NNP
Inc./NNP
's/POS
NetWare/NNP
network/NN
operating/VBG
system/NN
software/NN
./.
USX/NNP
Corp./NNP
posted/VBD
a/DT
23/CD
%/NN
drop/NN
in/IN
third-quarter/NN
profit/NN
,/,
as/IN
improved/VBN
oil/NN
results/NNS
failed/VBD
to/TO
offset/VB
weakness/NN
in/IN
steel/NN
and/CC
natural/JJ
gas/NN
operations/NNS
./.
The/DT
nation/NN
's/POS
largest/JJS
steelmaker/NN
earned/VBD
$/$
175/CD
million/CD
,/,
or/CC
62/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
the/DT
year-earlier/JJ
$/$
228/CD
million/CD
,/,
or/CC
80/CD
cents/NNS
a/DT
share/NN
./.
The/DT
recent/JJ
quarter/NN
includes/VBZ
pretax/NN
gains/NNS
of/IN
$/$
98/CD
million/CD
from/IN
asset/NN
sales/NNS
,/,
while/IN
like/JJ
gains/NNS
in/IN
the/DT
year-earlier/JJ
quarter/NN
totaled/VBD
$/$
61/CD
million/CD
./.
In/IN
the/DT
1988/CD
period/NN
,/,
USX/NNP
also/RB
had/VBD
a/DT
$/$
71/CD
million/CD
after-tax/JJ
gain/NN
from/IN
a/DT
tax/NN
dispute/NN
settlement/NN
./.
Sales/NNS
rose/VBD
5/CD
%/NN
to/TO
$/$
4.4/CD
billion/CD
from/IN
$/$
4.2/CD
billion/CD
./.
The/DT
earnings/NNS
drop/NN
appears/VBZ
particularly/RB
steep/JJ
in/IN
comparison/NN
with/IN
last/JJ
year/NN
's/POS
unusually/RB
strong/JJ
third/JJ
quarter/NN
,/,
when/WRB
the/DT
company/NN
was/VBD
riding/VBG
an/DT
industrywide/JJ
boom/NN
in/IN
demand/NN
and/CC
pricing/NN
./.
However/RB
,/,
third-quarter/NN
operating/NN
profit/NN
fell/VBD
14/CD
%/NN
,/,
as/IN
USX/NNP
sold/VBD
sizable/JJ
chunks/NNS
of/IN
its/PRP$
diversified/JJ
and/CC
steel/NN
segments/NNS
,/,
eliminating/VBG
income/NN
from/IN
those/DT
operations/NNS
./.
Among/IN
segments/NNS
that/WDT
continue/VBP
to/TO
operate/VB
,/,
though/RB
,/,
the/DT
company/NN
's/POS
steel/NN
division/NN
continued/VBD
to/TO
suffer/VB
from/IN
soft/JJ
demand/NN
for/IN
its/PRP$
tubular/JJ
goods/NNS
serving/VBG
the/DT
oil/NN
industry/NN
and/CC
other/JJ
markets/NNS
./.
Peter/NNP
Marcus/NNP
,/,
an/DT
analyst/NN
with/IN
PaineWebber/NNP
Inc./NNP
,/,
said/VBD
that/IN
a/DT
downturn/NN
in/IN
the/DT
appliance/NN
industry/NN
,/,
coupled/VBN
with/IN
sluggish/JJ
automotive/JJ
sales/NNS
,/,
hurt/VBP
USX/NNP
results/NNS
./.
Moreover/RB
,/,
USX/NNP
exports/NNS
more/JJR
than/IN
other/JJ
steelmakers/NNS
,/,
and/CC
the/DT
overseas/JJ
market/NN
has/VBZ
been/VBN
under/IN
more/RBR
severe/JJ
pricing/NN
pressure/NN
./.
The/DT
company/NN
attributed/VBD
lower/JJR
sales/NNS
and/CC
earnings/NNS
for/IN
the/DT
steel/NN
segment/NN
to/TO
the/DT
loss/NN
of/IN
results/NNS
from/IN
the/DT
Lorain/NNP
,/,
Ohio/NNP
,/,
plant/NN
,/,
which/WDT
now/RB
is/VBZ
a/DT
50-50/CD
joint/NN
venture/NN
with/IN
Japan/NNP
's/POS
Kobe/NNP
Steel/NNP
Ltd/NNP
./.
In/IN
the/DT
steel/NN
division/NN
,/,
operating/NN
profit/NN
dropped/VBD
11/CD
%/NN
to/TO
$/$
85/CD
million/CD
./.
Profit/NN
per/IN
ton/NN
of/IN
steel/NN
shipped/VBN
dropped/VBD
to/TO
about/IN
$/$
33/CD
a/DT
ton/NN
from/IN
$/$
42/CD
a/DT
ton/NN
last/JJ
year/NN
and/CC
$/$
53/CD
a/DT
ton/NN
in/IN
the/DT
second/JJ
quarter/NN
,/,
analysts/NNS
said/VBD
./.
Still/RB
,/,
USX/NNP
fared/VBD
better/RBR
than/IN
other/JJ
major/JJ
steelmakers/NNS
,/,
earning/VBG
more/JJR
per/IN
ton/NN
of/IN
steel/NN
shipped/VBN
than/IN
either/DT
Bethlehem/NNP
Steel/NNP
Corp./NNP
,/,
which/WDT
posted/VBD
a/DT
54/CD
%/NN
drop/NN
in/IN
net/JJ
income/NN
,/,
or/CC
Inland/NNP
Steel/NNP
Industries/NNPS
Inc./NNP
,/,
whose/WP$
profit/NN
plummeted/VBD
70/CD
%/NN
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
USX/NNP
shares/NNS
closed/VBD
up/RB
$/$
1.25/CD
,/,
at/IN
$/$
34.625/CD
,/,
as/IN
the/DT
reported/VBN
earnings/NNS
exceeded/VBD
projections/NNS
by/IN
some/DT
analysts/NNS
who/WP
had/VBD
n't/RB
expected/VBN
as/RB
great/JJ
a/DT
volume/NN
of/IN
asset/NN
sales/NNS
./.
The/DT
rise/NN
in/IN
the/DT
stock/NN
's/POS
price/NN
may/MD
also/RB
reflect/VB
the/DT
fact/NN
that/IN
USX/NNP
's/POS
steel/NN
segment/NN
fared/VBD
better/RBR
than/IN
some/DT
other/JJ
steelmakers/NNS
'/POS
./.
Charles/NNP
Bradford/NNP
,/,
an/DT
analyst/NN
with/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNPS
,/,
said/VBD
USX/NNP
may/MD
have/VB
received/VBN
orders/NNS
lost/VBN
by/IN
competitors/NNS
who/WP
were/VBD
involved/VBN
in/IN
labor/NN
contracts/NNS
earlier/RBR
this/DT
year/NN
./.
He/PRP
said/VBD
USX/NNP
also/RB
appeared/VBD
to/TO
sell/VB
a/DT
richer/JJR
mix/NN
of/IN
steel/NN
products/NNS
,/,
such/JJ
as/IN
the/DT
more/RBR
profitable/JJ
pipe/NN
and/CC
galvanized/JJ
coated/VBN
sheet/NN
,/,
than/IN
lower-priced/JJ
structural/JJ
goods/NNS
./.
The/DT
energy/NN
segment/NN
,/,
with/IN
a/DT
15/CD
%/NN
rise/NN
in/IN
operating/NN
profit/NN
,/,
is/VBZ
clearly/RB
the/DT
company/NN
's/POS
strongest/JJS
./.
Higher/JJR
crude/JJ
oil/NN
prices/NNS
helped/VBD
boost/VB
operating/NN
profit/NN
for/IN
the/DT
Marathon/NNP
Oil/NNP
Co./NNP
unit/NN
to/TO
$/$
198/CD
million/CD
from/IN
$/$
180/CD
million/CD
./.
The/DT
Texas/NNP
Oil/NNP
&/CC
Gas/NNP
division/NN
continues/VBZ
to/TO
operate/VB
in/IN
the/DT
red/NN
,/,
although/IN
losses/NNS
narrowed/VBD
to/TO
$/$
9/CD
million/CD
from/IN
$/$
15/CD
million/CD
./.
USX/NNP
announced/VBD
in/IN
October/NNP
that/IN
it/PRP
was/VBD
soliciting/VBG
bids/NNS
to/TO
sell/VB
TXO/NNP
's/POS
oil/NN
and/CC
gas/NN
reserves/NNS
./.
Proceeds/NNS
of/IN
that/DT
sale/NN
are/VBP
to/TO
be/VB
used/VBN
to/TO
reduce/VB
debt/NN
and/CC
buy/VB
back/RP
shares/NNS
./.
The/DT
company/NN
noted/VBD
that/IN
it/PRP
has/VBZ
reduced/VBN
debt/NN
by/IN
$/$
1.6/CD
billion/CD
since/IN
the/DT
end/NN
of/IN
1988/CD
and/CC
bought/VBD
back/RP
about/IN
15.5/CD
million/CD
shares/NNS
of/IN
common/JJ
stock/NN
since/IN
the/DT
fourth/JJ
quarter/NN
of/IN
1987/CD
./.
USX/NNP
has/VBZ
about/IN
$/$
5.5/CD
billion/CD
in/IN
long-term/JJ
debt/NN
and/CC
257/CD
million/CD
shares/NNS
outstanding/JJ
./.
The/DT
announced/VBN
sale/NN
of/IN
the/DT
reserves/NNS
was/VBD
followed/VBN
by/IN
news/NN
that/IN
investor/NN
Carl/NNP
Icahn/NNP
had/VBD
increased/VBN
his/PRP$
stake/NN
in/IN
USX/NNP
to/TO
13.1/CD
%/NN
and/CC
threatened/VBN
a/DT
takeover/NN
or/CC
other/JJ
business/NN
combination/NN
./.
Mr./NNP
Icahn/NNP
has/VBZ
said/VBN
he/PRP
believes/VBZ
USX/NNP
would/MD
be/VB
worth/JJ
more/RBR
if/IN
broken/VBN
up/IN
into/IN
steel/NN
and/CC
energy/NN
segments/NNS
./.
Profit/NN
for/IN
the/DT
nine/CD
months/NNS
jumped/VBD
21/CD
%/NN
to/TO
$/$
721/CD
million/CD
,/,
or/CC
$/$
2.62/CD
a/DT
share/NN
,/,
from/IN
$/$
598/CD
million/CD
,/,
or/CC
$/$
2.07/CD
a/DT
share/NN
./.
Sales/NNS
rose/VBD
10/CD
%/NN
to/TO
$/$
13.8/CD
billion/CD
from/IN
$/$
12.5/CD
billion/CD
./.
John/NNP
F./NNP
Barrett/NNP
,/,
40/CD
,/,
formerly/RB
executive/JJ
vice/NN
president/NN
and/CC
chief/NN
financial/JJ
officer/NN
,/,
was/VBD
named/VBN
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
,/,
posts/NNS
which/WDT
had/VBD
been/VBN
vacant/JJ
./.
Leon/NNP
J./NNP
Level/NNP
,/,
vice/NN
president/NN
and/CC
chief/NN
financial/JJ
officer/NN
of/IN
this/DT
computer/NN
services/NNS
concern/NN
,/,
and/CC
F./NNP
Warren/NNP
McFarlan/NNP
,/,
a/DT
professor/NN
at/IN
Harvard/NNP
University/NNP
's/POS
Graduate/NNP
School/NNP
of/IN
Business/NNP
,/,
were/VBD
elected/VBN
directors/NNS
,/,
increasing/VBG
board/NN
membership/NN
to/TO
nine/CD
./.
David/NNP
A./NNP
DiLoreto/NNP
,/,
president/NN
of/IN
metal/NN
container/NN
division/NN
,/,
was/VBD
named/VBN
to/TO
the/DT
additional/JJ
post/NN
of/IN
group/NN
vice/NN
president/NN
,/,
packaging/NN
products/NNS
,/,
at/IN
this/DT
packaging/NN
,/,
industrial/JJ
and/CC
aerospace/NN
products/NNS
concern/NN
,/,
succeeding/VBG
Delmont/NNP
A./NNP
Davis/NNP
,/,
who/WP
was/VBD
named/VBN
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
in/IN
August/NNP
./.
Two/CD
leading/VBG
constitutional-law/NN
experts/NNS
said/VBD
President/NNP
Bush/NNP
does/VBZ
n't/RB
have/VB
the/DT
legal/JJ
authority/NN
to/TO
exercise/VB
a/DT
line-item/JJ
veto/NN
./.
Professors/NNP
Philip/NNP
Kurland/NNP
of/IN
the/DT
University/NNP
of/IN
Chicago/NNP
and/CC
Laurence/NNP
Tribe/NNP
of/IN
Harvard/NNP
Law/NNP
School/NNP
said/VBD
any/DT
effort/NN
by/IN
President/NNP
Bush/NNP
to/TO
claim/VB
authority/NN
for/IN
a/DT
line-item/JJ
veto/NN
would/MD
contradict/VB
the/DT
text/NN
of/IN
the/DT
Constitution/NNP
and/CC
the/DT
intent/NN
of/IN
its/PRP$
authors/NNS
,/,
as/RB
well/RB
as/IN
the/DT
views/NNS
of/IN
previous/JJ
presidents/NNS
./.
A/DT
line-item/JJ
veto/NN
is/VBZ
a/DT
procedure/NN
that/WDT
would/MD
allow/VB
a/DT
president/NN
to/TO
veto/VB
part/NN
of/IN
a/DT
big/JJ
congressional/JJ
spending/NN
bill/NN
without/IN
having/VBG
to/TO
scuttle/VB
the/DT
entire/JJ
measure/NN
./.
Mr./NNP
Bush/NNP
has/VBZ
said/VBN
he/PRP
would/MD
like/VB
to/TO
be/VB
able/JJ
to/TO
use/VB
this/DT
procedure/NN
./.
A/DT
White/NNP
House/NNP
spokesman/NN
said/VBD
last/JJ
week/NN
that/IN
the/DT
president/NN
is/VBZ
considering/VBG
declaring/VBG
that/IN
the/DT
Constitution/NNP
implicitly/RB
gives/VBZ
him/PRP
the/DT
authority/NN
for/IN
a/DT
line-item/JJ
veto/NN
to/TO
provoke/VB
a/DT
test/NN
case/NN
./.
But/CC
the/DT
two/CD
legal/JJ
experts/NNS
,/,
responding/VBG
to/TO
an/DT
inquiry/NN
by/IN
Sen./NNP
Edward/NNP
Kennedy/NNP
D./NNP
,/,
Mass./NNP
a/DT
joint/JJ
letter/NN
that/IN
the/DT
president/NN
``/``
lacks/VBZ
the/DT
constitutional/JJ
authority/NN
to/TO
exercise/VB
a/DT
line-item/JJ
veto/NN
./.
''/''
The/DT
two/CD
professors/NNS
represent/VBP
different/JJ
ends/NNS
of/IN
the/DT
political/JJ
spectrum/NN
--/:
Mr./NNP
Kurland/NNP
is/VBZ
a/DT
conservative/JJ
and/CC
Mr./NNP
Tribe/NNP
is/VBZ
a/DT
liberal/NN
./.
The/DT
two/CD
professors/NNS
said/VBD
the/DT
Constitution/NNP
authorizes/VBZ
the/DT
president/NN
to/TO
veto/VB
entire/JJ
bills/NNS
,/,
not/RB
partial/JJ
measures/NNS
./.
Moreover/RB
,/,
they/PRP
said/VBD
the/DT
first/JJ
appropriations/NNS
bill/NN
passed/VBN
200/CD
years/NNS
ago/IN
covered/VBD
many/JJ
different/JJ
items/NNS
,/,
and/CC
there/EX
was/VBD
no/DT
discussion/NN
of/IN
a/DT
line-item/JJ
veto/NN
./.
They/PRP
also/RB
said/VBD
that/IN
more/JJR
than/IN
a/DT
dozen/NN
presidents/NNS
have/VBP
called/VBN
for/IN
line-item/JJ
veto/NN
authority/NN
since/IN
the/DT
Civil/NNP
War/NNP
,/,
and/CC
``/``
all/DT
have/VBP
shared/VBN
the/DT
view/NN
that/IN
such/JJ
lawmaking/JJ
power/NN
is/VBZ
beyond/IN
the/DT
reach/NN
''/''
of/IN
the/DT
president/NN
./.
Sen./NNP
Kennedy/NNP
said/VBD
in/IN
a/DT
separate/JJ
statement/NN
that/IN
he/PRP
supports/VBZ
legislation/NN
to/TO
give/VB
the/DT
president/NN
line-item/JJ
veto/NN
power/NN
,/,
but/CC
that/IN
it/PRP
would/MD
be/VB
a/DT
``/``
reckless/JJ
course/NN
of/IN
action/NN
''/''
for/IN
President/NNP
Bush/NNP
to/TO
claim/VB
the/DT
authority/NN
without/IN
congressional/JJ
approval/NN
./.
Trinity/NNP
Industries/NNPS
Inc./NNP
said/VBD
it/PRP
reached/VBD
a/DT
preliminary/JJ
agreement/NN
to/TO
sell/VB
500/CD
railcar/NN
platforms/NNS
to/TO
Trailer/NNP
Train/NNP
Co./NNP
of/IN
Chicago/NNP
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Trinity/NNP
said/VBD
it/PRP
plans/VBZ
to/TO
begin/VB
delivery/NN
in/IN
the/DT
first/JJ
quarter/NN
of/IN
next/JJ
year/NN
./.
In/IN
an/DT
Oct./NNP
19/CD
review/NN
of/IN
``/``
The/DT
Misanthrope/NN
''/''
at/IN
Chicago/NNP
's/POS
Goodman/NNP
Theatre/NNP
``/``
Revitalized/VBN
Classics/NNS
Take/VBP
the/DT
Stage/NN
in/IN
Windy/NNP
City/NNP
,/,
''/''
Leisure/NN
&/CC
Arts/NNS
the/DT
role/NN
of/IN
Celimene/NNP
,/,
played/VBN
by/IN
Kim/NNP
Cattrall/NNP
,/,
was/VBD
mistakenly/RB
attributed/VBN
to/TO
Christina/NNP
Haag/NNP
./.
Ms./NNP
Haag/NNP
plays/VBZ
Elianti/NNP
./.
Revitalized/VBN
Classics/NNS
Take/VBP
the/DT
Stage/NN
in/IN
Windy/NNP
City/NNP
''/''
--/:
WSJ/NNP
Oct./NNP
19/CD
,/,
1989/CD
)/)
Rolls-Royce/NNP
Motor/NNP
Cars/NNPS
Inc./NNP
said/VBD
it/PRP
expects/VBZ
its/PRP$
U.S./NNP
sales/NNS
to/TO
remain/VB
steady/JJ
at/IN
about/IN
1,200/CD
cars/NNS
in/IN
1990/CD
./.
The/DT
luxury/NN
auto/NN
maker/NN
last/JJ
year/NN
sold/VBD
1,214/CD
cars/NNS
in/IN
the/DT
U.S./NNP
Howard/NNP
Mosher/NNP
,/,
president/NN
and/CC
chief/JJ
executive/NN
officer/NN
,/,
said/VBD
he/PRP
anticipates/VBZ
growth/NN
for/IN
the/DT
luxury/NN
auto/NN
maker/NN
in/IN
Britain/NNP
and/CC
Europe/NNP
,/,
and/CC
in/IN
Far/JJ
Eastern/JJ
markets/NNS
./.
BELL/NNP
INDUSTRIES/NNP
Inc./NNP
increased/VBD
its/PRP$
quarterly/NN
to/TO
10/CD
cents/NNS
from/IN
seven/CD
cents/NNS
a/DT
share/NN
./.
The/DT
new/JJ
rate/NN
will/MD
be/VB
payable/JJ
Feb./NNP
15/CD
./.
A/DT
record/NN
date/NN
has/VBZ
n't/RB
been/VBN
set/VBN
./.
Bell/NNP
,/,
based/VBN
in/IN
Los/NNP
Angeles/NNP
,/,
makes/VBZ
and/CC
distributes/VBZ
electronic/JJ
,/,
computer/NN
and/CC
building/NN
products/NNS
./.
Investors/NNS
are/VBP
appealing/VBG
to/TO
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
not/RB
to/TO
limit/VB
their/PRP$
access/NN
to/TO
information/NN
about/IN
stock/NN
purchases/NNS
and/CC
sales/NNS
by/IN
corporate/JJ
insiders/NNS
./.
A/DT
SEC/NNP
proposal/NN
to/TO
ease/VB
reporting/NN
requirements/NNS
for/IN
some/DT
company/NN
executives/NNS
would/MD
undermine/VB
the/DT
usefulness/NN
of/IN
information/NN
on/IN
insider/NN
trades/NNS
as/IN
a/DT
stock-picking/JJ
tool/NN
,/,
individual/JJ
investors/NNS
and/CC
professional/JJ
money/NN
managers/NNS
contend/VBP
./.
They/PRP
make/VBP
the/DT
argument/NN
in/IN
letters/NNS
to/TO
the/DT
agency/NN
about/IN
rule/NN
changes/NNS
proposed/VBD
this/DT
past/JJ
summer/NN
that/IN
,/,
among/IN
other/JJ
things/NNS
,/,
would/MD
exempt/VB
many/JJ
middle-management/JJ
executives/NNS
from/IN
reporting/VBG
trades/NNS
in/IN
their/PRP$
own/JJ
companies/NNS
'/POS
shares/NNS
./.
The/DT
proposed/VBN
changes/NNS
also/RB
would/MD
allow/VB
executives/NNS
to/TO
report/VB
exercises/NNS
of/IN
options/NNS
later/RBR
and/CC
less/RBR
often/RB
./.
Many/JJ
of/IN
the/DT
letters/NNS
maintain/VBP
that/IN
investor/NN
confidence/NN
has/VBZ
been/VBN
so/RB
shaken/VBN
by/IN
the/DT
1987/CD
stock/NN
market/NN
crash/NN
--/:
and/CC
the/DT
markets/NNS
already/RB
so/RB
stacked/VBN
against/IN
the/DT
little/JJ
guy/NN
--/:
that/IN
any/DT
decrease/NN
in/IN
information/NN
on/IN
insider-trading/NN
patterns/NNS
might/MD
prompt/VB
individuals/NNS
to/TO
get/VB
out/RB
of/IN
stocks/NNS
altogether/RB
./.
``/``
The/DT
SEC/NNP
has/VBZ
historically/RB
paid/VBN
obeisance/NN
to/TO
the/DT
ideal/NN
of/IN
a/DT
level/JJ
playing/NN
field/NN
,/,
''/''
wrote/VBD
Clyde/NNP
S./NNP
McGregor/NNP
of/IN
Winnetka/NNP
,/,
Ill./NNP
,/,
in/IN
one/CD
of/IN
the/DT
92/CD
letters/NNS
the/DT
agency/NN
has/VBZ
received/VBN
since/IN
the/DT
changes/NNS
were/VBD
proposed/VBN
Aug./NNP
17/CD
./.
``/``
Apparently/RB
the/DT
commission/NN
did/VBD
not/RB
really/RB
believe/VB
in/IN
this/DT
ideal/NN
./.
''/''
Currently/RB
,/,
the/DT
rules/NNS
force/VBP
executives/NNS
,/,
directors/NNS
and/CC
other/JJ
corporate/JJ
insiders/NNS
to/TO
report/VB
purchases/NNS
and/CC
sales/NNS
of/IN
their/PRP$
companies/NNS
'/POS
shares/NNS
within/IN
about/IN
a/DT
month/NN
after/IN
the/DT
transaction/NN
./.
But/CC
about/IN
25/CD
%/NN
of/IN
the/DT
insiders/NNS
,/,
according/VBG
to/TO
SEC/NNP
figures/NNS
,/,
file/VBP
their/PRP$
reports/NNS
late/RB
./.
The/DT
changes/NNS
were/VBD
proposed/VBN
in/IN
an/DT
effort/NN
to/TO
streamline/VB
federal/JJ
bureaucracy/NN
and/CC
boost/VB
compliance/NN
by/IN
the/DT
executives/NNS
``/``
who/WP
are/VBP
really/RB
calling/VBG
the/DT
shots/NNS
,/,
''/''
said/VBD
Brian/NNP
Lane/NNP
,/,
special/JJ
counsel/NN
at/IN
the/DT
SEC/NNP
's/POS
office/NN
of/IN
disclosure/NN
policy/NN
,/,
which/WDT
proposed/VBD
the/DT
changes/NNS
./.
Investors/NNS
,/,
money/NN
managers/NNS
and/CC
corporate/JJ
officials/NNS
had/VBD
until/IN
today/NN
to/TO
comment/VB
on/IN
the/DT
proposals/NNS
,/,
and/CC
the/DT
issue/NN
has/VBZ
produced/VBN
more/JJR
mail/NN
than/IN
almost/RB
any/DT
other/JJ
issue/NN
in/IN
memory/NN
,/,
Mr./NNP
Lane/NNP
said/VBD
./.
The/DT
SEC/NNP
will/MD
probably/RB
vote/VB
on/IN
the/DT
proposal/NN
early/RB
next/JJ
year/NN
,/,
he/PRP
said/VBD
./.
Not/RB
all/PDT
those/DT
who/WP
wrote/VBD
oppose/VBP
the/DT
changes/NNS
./.
The/DT
Committee/NNP
on/IN
Federal/NNP
Regulation/NNP
of/IN
Securities/NNPS
for/IN
the/DT
American/NNP
Bar/NNP
Association/NNP
argues/VBZ
,/,
for/IN
example/NN
,/,
in/IN
its/PRP$
lengthy/JJ
letter/NN
to/TO
the/DT
SEC/NNP
,/,
that/IN
the/DT
proposed/VBN
changes/NNS
``/``
would/MD
substantially/RB
improve/VB
the/DT
law/NN
it/PRP
more/RBR
closely/RB
to/TO
contemporary/JJ
business/NN
realities/NNS
./.
''/''
What/WP
the/DT
investors/NNS
who/WP
oppose/VBP
the/DT
proposed/VBN
changes/NNS
object/VBP
to/TO
most/RBS
is/VBZ
the/DT
effect/NN
they/PRP
say/VBP
the/DT
proposal/NN
would/MD
have/VB
on/IN
their/PRP$
ability/NN
to/TO
spot/VB
telltale/JJ
``/``
clusters/NNS
''/''
of/IN
trading/NN
activity/NN
--/:
buying/NN
or/CC
selling/NN
by/IN
more/JJR
than/IN
one/CD
officer/NN
or/CC
director/NN
within/IN
a/DT
short/JJ
period/NN
of/IN
time/NN
./.
According/VBG
to/TO
some/DT
estimates/NNS
,/,
the/DT
rule/NN
changes/NNS
would/MD
cut/VB
insider/NN
filings/NNS
by/IN
more/JJR
than/IN
a/DT
third/NN
./.
The/DT
SEC/NNP
's/POS
Mr./NNP
Lane/NNP
vehemently/RB
disputed/VBD
those/DT
estimates/NNS
./.
The/DT
rules/NNS
will/MD
eliminate/VB
filings/NNS
policy-making/VBG
divisions/NNS
,/,
such/JJ
as/IN
sales/NNS
,/,
marketing/NN
,/,
finance/NN
and/CC
research/NN
and/CC
development/NN
,/,
Mr./NNP
Lane/NNP
said/VBD
./.
The/DT
proposed/VBN
rules/NNS
also/RB
would/MD
be/VB
tougher/JJR
on/IN
the/DT
insiders/NNS
still/RB
required/JJ
to/TO
file/VB
reports/NNS
,/,
he/PRP
said/VBD
./.
Companies/NNS
would/MD
be/VB
compelled/VBN
to/TO
publish/VB
in/IN
annual/JJ
proxy/NN
statements/NNS
the/DT
names/NNS
of/IN
insiders/NNS
who/WP
fail/VBP
to/TO
file/VB
reports/NNS
on/IN
time/NN
./.
Considered/VBN
as/IN
a/DT
whole/NN
,/,
Mr./NNP
Lane/NNP
said/VBD
,/,
the/DT
filings/NNS
required/VBN
under/IN
the/DT
proposed/VBN
rules/NNS
``/``
will/MD
be/VB
at/IN
least/RBS
as/IN
effective/JJ
,/,
if/IN
not/RB
more/RBR
so/RB
,/,
for/IN
investors/NNS
following/VBG
transactions/NNS
./.
''/''
But/CC
Robert/NNP
Gabele/NNP
,/,
president/NN
of/IN
Invest\/Net/NNP
,/,
a/DT
North/NNP
Miami/NNP
,/,
Fla./NNP
,/,
company/NN
that/WDT
packages/VBZ
and/CC
sells/VBZ
the/DT
insider-trading/NN
data/NNS
,/,
said/VBD
the/DT
proposal/NN
is/VBZ
worded/VBN
so/RB
vaguely/RB
that/IN
key/JJ
officials/NNS
may/MD
fail/VB
to/TO
file/VB
the/DT
reports/NNS
./.
Many/JJ
investors/NNS
wrote/VBD
asking/VBG
the/DT
SEC/NNP
to/TO
require/VB
insiders/NNS
to/TO
report/VB
their/PRP$
purchases/NNS
and/CC
sales/NNS
immediately/RB
,/,
not/RB
a/DT
month/NN
later/RB
./.
But/CC
Mr./NNP
Lane/NNP
said/VBD
that/IN
while/IN
the/DT
SEC/NNP
regulates/VBZ
who/WP
files/VBZ
,/,
the/DT
law/NN
tells/VBZ
them/PRP
when/WRB
to/TO
do/VB
so/RB
./.
Investors/NNS
who/WP
want/VBP
to/TO
change/VB
the/DT
required/JJ
timing/NN
should/MD
write/VB
their/PRP$
representatives/NNS
in/IN
Congress/NNP
,/,
he/PRP
added/VBD
./.
The/DT
SEC/NNP
would/MD
likely/RB
be/VB
amenable/JJ
to/TO
legislation/NN
that/WDT
required/VBD
insiders/NNS
to/TO
file/VB
transactions/NNS
on/IN
a/DT
more/RBR
timely/JJ
basis/NN
,/,
he/PRP
said/VBD
./.
The/DT
nation/NN
's/POS
largest/JJS
pension/NN
fund/NN
,/,
which/WDT
oversees/VBZ
$/$
80/CD
billion/CD
for/IN
college/NN
employees/NNS
,/,
plans/VBZ
to/TO
offer/VB
two/CD
new/JJ
investment/NN
options/NNS
to/TO
its/PRP$
1.2/CD
million/CD
participants/NNS
./.
The/DT
Teachers/NNPS
Insurance/NNP
and/CC
Annuity/NNP
Association-College/NNP
Retirement/NNP
Equities/NNPS
Fund/NNP
said/VBD
it/PRP
will/MD
introduce/VB
a/DT
stock/NN
and/CC
bond/NN
fund/NN
that/WDT
will/MD
invest/VB
in/IN
``/``
socially/RB
responsible/JJ
''/''
companies/NNS
,/,
and/CC
a/DT
bond/NN
fund/NN
./.
Both/DT
funds/NNS
are/VBP
expected/VBN
to/TO
begin/VB
operation/NN
around/IN
March/NNP
1/CD
,/,
subject/JJ
to/TO
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
approval/NN
./.
For/IN
its/PRP$
employees/NNS
to/TO
sign/VB
up/RB
for/IN
the/DT
options/NNS
,/,
a/DT
college/NN
also/RB
must/MD
approve/VB
the/DT
plan/NN
./.
Some/DT
4,300/CD
institutions/NNS
are/VBP
part/NN
of/IN
the/DT
pension/NN
fund/NN
./.
The/DT
new/JJ
options/NNS
carry/VBP
out/RP
part/NN
of/IN
an/DT
agreement/NN
that/IN
the/DT
pension/NN
fund/NN
,/,
under/IN
pressure/NN
to/TO
relax/VB
its/PRP$
strict/JJ
participation/NN
rules/NNS
and/CC
to/TO
provide/VB
more/JJR
investment/NN
options/NNS
,/,
reached/VBN
with/IN
the/DT
SEC/NNP
in/IN
December/NNP
./.
The/DT
new/JJ
``/``
social/JJ
choice/NN
''/''
fund/NN
will/MD
shun/VB
securities/NNS
of/IN
companies/NNS
linked/VBN
to/TO
South/NNP
Africa/NNP
,/,
nuclear/JJ
power/NN
and/CC
in/IN
some/DT
cases/NNS
,/,
Northern/NNP
Ireland/NNP
./.
Also/RB
excluded/VBN
will/MD
be/VB
investments/NNS
in/IN
companies/NNS
with/IN
``/``
significant/JJ
''/''
business/NN
stemming/VBG
from/IN
weapons/NNS
manufacture/NN
,/,
alcoholic/JJ
beverages/NNS
or/CC
tobacco/NN
./.
Sixty/CD
percent/NN
of/IN
the/DT
fund/NN
will/MD
be/VB
invested/VBN
in/IN
stocks/NNS
,/,
with/IN
the/DT
rest/NN
going/VBG
into/IN
bonds/NNS
or/CC
short-term/JJ
investments/NNS
./.
The/DT
bond/NN
fund/NN
will/MD
invest/VB
in/IN
high-grade/JJ
or/CC
medium-grade/JJ
bonds/NNS
,/,
mortgages/NNS
or/CC
asset-backed/JJ
securities/NNS
,/,
including/VBG
as/JJ
much/RB
as/IN
15/CD
%/NN
in/IN
foreign/JJ
securities/NNS
./.
The/DT
fund/NN
also/RB
might/MD
buy/VB
and/CC
sell/VB
futures/NNS
and/CC
options/NNS
contracts/NNS
,/,
subject/JJ
to/TO
approval/NN
by/IN
the/DT
New/NNP
York/NNP
State/NNP
Insurance/NNP
Department/NNP
./.
Under/IN
two/CD
new/JJ
features/NNS
,/,
participants/NNS
will/MD
be/VB
able/JJ
to/TO
transfer/VB
money/NN
from/IN
the/DT
new/JJ
funds/NNS
to/TO
other/JJ
investment/NN
funds/NNS
or/CC
,/,
if/IN
their/PRP$
jobs/NNS
are/VBP
terminated/VBN
,/,
receive/VB
cash/NN
from/IN
the/DT
funds/NNS
./.
The/DT
investment/NN
choices/NNS
offered/VBN
by/IN
the/DT
pension/NN
fund/NN
currently/RB
are/VBP
limited/VBN
to/TO
a/DT
stock/NN
fund/NN
,/,
an/DT
annuity/NN
and/CC
a/DT
money-market/NN
fund/NN
./.
New/NNP
Brunswick/NNP
Scientific/NNP
Co./NNP
,/,
a/DT
maker/NN
of/IN
biotechnology/NN
instrumentation/NN
and/CC
equipment/NN
,/,
said/VBD
it/PRP
adopted/VBD
an/DT
anti-takeover/JJ
plan/NN
giving/VBG
shareholders/NNS
the/DT
right/NN
to/TO
purchase/VB
shares/NNS
at/IN
half/JJ
price/NN
under/IN
certain/JJ
conditions/NNS
./.
The/DT
company/NN
said/VBD
the/DT
plan/NN
,/,
under/IN
review/NN
for/IN
some/DT
time/NN
,/,
will/MD
protect/VB
shareholders/NNS
against/IN
``/``
abusive/JJ
takeover/NN
tactics/NNS
./.
''/''
W./NNP
Ed/NNP
Tyler/NNP
,/,
37/CD
years/NNS
old/JJ
,/,
a/DT
senior/JJ
vice/NN
president/NN
at/IN
this/DT
printing/VBG
concern/NN
,/,
was/VBD
elected/VBN
president/NN
of/IN
its/PRP$
technology/NN
group/NN
,/,
a/DT
new/JJ
position/NN
./.
Solo/JJ
woodwind/NN
players/NNS
have/VBP
to/TO
be/VB
creative/JJ
if/IN
they/PRP
want/VBP
to/TO
work/VB
a/DT
lot/NN
,/,
because/IN
their/PRP$
repertoire/NN
and/CC
audience/NN
appeal/NN
are/VBP
limited/JJ
./.
The/DT
oboist/NN
Heinz/NNP
Holliger/NNP
has/VBZ
taken/VBN
a/DT
hard/JJ
line/NN
about/IN
the/DT
problem/NN
:/:
He/PRP
commissions/VBZ
and/CC
splendidly/RB
interprets/VBZ
fearsome/JJ
contemporary/JJ
scores/NNS
and/CC
does/VBZ
some/DT
conducting/NN
,/,
so/IN
he/PRP
does/VBZ
n't/RB
have/VB
to/TO
play/VB
the/DT
same/JJ
Mozart/NNP
and/CC
Strauss/NNP
concertos/NNS
over/RB
and/CC
over/RB
again/RB
./.
Richard/NNP
Stoltzman/NNP
has/VBZ
taken/VBN
a/DT
gentler/JJR
,/,
more/RBR
audience-friendly/JJ
approach/NN
./.
Years/NNS
ago/RB
,/,
he/PRP
collaborated/VBD
with/IN
the/DT
new/JJ
music/NN
gurus/NNS
Peter/NNP
Serkin/NNP
and/CC
Fred/NNP
Sherry/NNP
in/IN
the/DT
very/RB
countercultural/JJ
chamber/NN
group/NN
Tashi/NNP
,/,
which/WDT
won/VBD
audiences/NNS
over/RP
to/TO
dreaded/JJ
contemporary/JJ
scores/NNS
like/IN
Messiaen/NNP
's/POS
``/``
Quartet/NN
for/IN
the/DT
End/NN
of/IN
Time/NN
./.
''/''
Today/NN
,/,
the/DT
pixie-like/JJ
clarinetist/NN
has/VBZ
mostly/RB
dropped/VBN
the/DT
missionary/JJ
work/NN
a/DT
touch/NN
of/IN
the/DT
old/JJ
Tashi/NNP
still/RB
survives/VBZ
)/)
and/CC
now/RB
goes/VBZ
on/IN
the/DT
road/NN
with/IN
piano/NN
,/,
bass/NN
,/,
a/DT
slide/NN
show/NN
,/,
and/CC
a/DT
repertoire/NN
that/WDT
ranges/VBZ
from/IN
light/JJ
classical/JJ
to/TO
light/JJ
jazz/NN
to/TO
light/JJ
pop/NN
,/,
with/IN
a/DT
few/JJ
notable/JJ
exceptions/NNS
./.
Just/RB
the/DT
thing/NN
for/IN
the/DT
Vivaldi-at-brunch/JJ
set/NN
,/,
the/DT
yuppie/NN
audience/NN
that/WDT
has/VBZ
embraced/VBN
New/NNP
Age/NNP
as/IN
its/PRP$
very/RB
own/JJ
easy/JJ
listening/NN
./.
But/CC
you/PRP
ca/MD
n't/RB
dismiss/VB
Mr./NNP
Stoltzman/NNP
's/POS
music/NN
or/CC
his/PRP$
motives/NNS
as/RB
merely/RB
commercial/JJ
and/CC
lightweight/JJ
./.
He/PRP
believes/VBZ
in/IN
what/WP
he/PRP
plays/VBZ
,/,
and/CC
he/PRP
plays/VBZ
superbly/RB
./.
His/PRP$
recent/JJ
appearance/NN
at/IN
the/DT
Metropolitan/NNP
Museum/NNP
,/,
dubbed/VBN
``/``
A/DT
Musical/JJ
Odyssey/NN
,/,
''/''
was/VBD
a/DT
case/NN
in/IN
point/NN
./.
It/PRP
felt/VBD
more/RBR
like/IN
a/DT
party/NN
,/,
or/CC
a/DT
highly/RB
polished/JJ
jam/NN
session/NN
with/IN
a/DT
few/JJ
friends/NNS
,/,
than/IN
a/DT
classical/JJ
concert/NN
./.
Clad/VBN
in/IN
his/PRP$
trademark/NN
black/JJ
velvet/NN
suit/NN
,/,
the/DT
soft-spoken/JJ
clarinetist/NN
announced/VBD
that/IN
his/PRP$
new/JJ
album/NN
,/,
``/``
Inner/JJ
Voices/NNS
,/,
''/''
had/VBD
just/RB
been/VBN
released/VBN
,/,
that/IN
his/PRP$
family/NN
was/VBD
in/IN
the/DT
front/NN
row/NN
,/,
and/CC
that/IN
it/PRP
was/VBD
his/PRP$
mother/NN
's/POS
birthday/NN
,/,
so/RB
he/PRP
was/VBD
going/VBG
to/TO
play/VB
her/PRP$
favorite/JJ
tune/NN
from/IN
the/DT
record/NN
./.
He/PRP
launched/VBD
into/IN
Saint-Saens/NNP
's/POS
``/``
The/DT
Swan/NN
''/''
from/IN
``/``
Carnival/NN
of/IN
the/DT
Animals/NNS
,/,
''/''
a/DT
favorite/JJ
encore/NN
piece/NN
for/IN
cellists/NNS
,/,
with/IN
lovely/JJ
,/,
glossy/JJ
tone/NN
and/CC
no/DT
bite/NN
./.
Then/RB
,/,
as/IN
if/IN
to/TO
show/VB
that/IN
he/PRP
could/MD
play/VB
fast/RB
as/IN
well/RB
,/,
he/PRP
offered/VBD
the/DT
second/JJ
movement/NN
from/IN
Saint-Saens/NNP
's/POS
Sonata/NN
for/IN
Clarinet/NN
,/,
a/DT
whimsical/JJ
,/,
puckish/JJ
tidbit/NN
that/WDT
reflected/VBD
the/DT
flip/JJ
side/NN
of/IN
the/DT
Stoltzman/NNP
personality/NN
./.
And/CC
so/RB
it/PRP
went/VBD
through/IN
the/DT
first/JJ
half/NN
:/:
an/DT
ingeniously/RB
chosen/VBN
potpourri/NN
of/IN
pieces/NNS
,/,
none/NN
longer/JJR
than/IN
five/CD
minutes/NNS
,/,
none/NN
that/WDT
would/MD
disturb/VB
or/CC
challenge/VB
a/DT
listener/NN
./.
Mr./NNP
Stoltzman/NNP
introduced/VBD
his/PRP$
colleagues/NNS
:/:
Bill/NNP
Douglas/NNP
,/,
pianist\/bassoonist\/composer/NN
and/CC
an/DT
old/JJ
buddy/NN
from/IN
Yale/NNP
,/,
and/CC
jazz/NN
bassist/NN
Eddie/NNP
Gomez/NNP
./.
An/DT
improvisational/JJ
section/NN
was/VBD
built/VBN
around/IN
pieces/NNS
by/IN
Mr./NNP
Douglas/NNP
,/,
beginning/NN
with/IN
``/``
Golden/JJ
Rain/NN
,/,
''/''
a/DT
lilting/JJ
,/,
laid-back/JJ
lead/NN
in/IN
to/TO
the/DT
uptempo/JJ
``/``
Sky/NN
,/,
''/''
which/WDT
gave/VBD
Mr./NNP
Stoltzman/NNP
the/DT
opportunity/NN
to/TO
wail/VB
in/IN
a/DT
high/JJ
register/NN
and/CC
show/VB
off/RP
his/PRP$
fleet/JJ
fingers/NNS
./.
Bach/NNP
's/POS
``/``
Air/NN
''/''
followed/VBD
./.
Mr./NNP
Stoltzman/NNP
tied/VBD
the/DT
composer/NN
in/RP
by/IN
proclaiming/VBG
him/PRP
``/``
the/DT
great/JJ
improviser/NN
of/IN
the/DT
18th/JJ
century/NN
,/,
''/''
and/CC
then/RB
built/VBD
on/IN
the/DT
image/NN
by/IN
joining/VBG
with/IN
Mr./NNP
Douglas/NNP
in/IN
some/DT
Bach/NNP
two-part/JJ
inventions/NNS
,/,
cleverly/RB
arranged/VBN
for/IN
clarinet/NN
and/CC
bassoon/NN
by/IN
Mr./NNP
Douglas/NNP
./.
Keeping/VBG
the/DT
mood/NN
light/JJ
,/,
the/DT
two/CD
then/RB
chanted/VBD
and/CC
chortled/VBD
their/PRP$
way/NN
through/IN
some/DT
murderous/JJ
polyrhythms/NNS
,/,
devised/VBN
by/IN
Mr./NNP
Douglas/NNP
as/IN
an/DT
alternative/NN
to/TO
Hindemith/NNP
's/POS
dry/JJ
theory-teaching/VBG
techniques/NNS
,/,
and/CC
then/RB
,/,
with/IN
Mr./NNP
Gomez/NNP
,/,
soared/VBD
and/CC
improvised/VBD
on/IN
the/DT
composer/NN
's/POS
tight/JJ
``/``
Bebop/NNP
Etudes/NNP
./.
''/''
The/DT
end/NN
of/IN
the/DT
first/JJ
half/NN
,/,
however/RB
,/,
brought/VBD
what/WP
the/DT
standing-room-only/JJ
crowd/NN
seemed/VBD
to/TO
be/VB
waiting/VBG
for/IN
:/:
the/DT
pop/NN
singer/NN
Judy/NNP
Collins/NNP
,/,
who/WP
appears/VBZ
on/IN
``/``
Inner/JJ
Voices/NNS
./.
''/''
Glamorous/JJ
and/CC
pure-voiced/JJ
as/IN
ever/RB
,/,
Ms./NNP
Collins/NNP
sang/VBD
Joni/NNP
Mitchell/NNP
's/POS
``/``
For/IN
Free/RB
''/''
--/:
about/IN
an/DT
encounter/NN
with/IN
a/DT
street-corner/JJ
clarinetist/NN
,/,
to/TO
which/WDT
Mr./NNP
Stoltzman/NNP
contributed/VBD
a/DT
clarinet/NN
obligatto/NN
--/:
and/CC
Mr./NNP
Douglas/NNP
's/POS
lush/JJ
setting/NN
of/IN
a/DT
Gaelic/JJ
blessing/NN
,/,
``/``
Deep/JJ
Peace/NN
./.
''/''
``/``
Deep/JJ
Peace/NN
''/''
also/RB
featured/VBD
a/DT
slide/NN
show/NN
of/IN
lovely/JJ
but/CC
predictable/JJ
images/NNS
of/IN
clouds/NNS
,/,
beaches/NNS
,/,
deserts/NNS
,/,
sunsets/NNS
,/,
etc/FW
./.
It/PRP
was/VBD
all/RB
too/RB
mellow/JJ
to/TO
be/VB
believed/VBN
,/,
but/CC
they/PRP
probably/RB
would/MD
have/VB
gotten/VBN
away/RB
with/IN
it/PRP
,/,
had/VBD
they/PRP
not/RB
felt/VBD
compelled/VBN
to/TO
add/VB
Ms./NNP
Collins/NNP
's/POS
signature/NN
tune/NN
,/,
``/``
Amazing/JJ
Grace/NN
,/,
''/''
and/CC
ask/VB
for/IN
audience/NN
participation/NN
./.
That/WDT
went/VBD
over/IN
the/DT
permissible/JJ
line/NN
for/IN
warm/JJ
and/CC
fuzzy/JJ
feelings/NNS
./.
Was/VBD
this/DT
why/WRB
some/DT
of/IN
the/DT
audience/NN
departed/VBD
before/IN
or/CC
during/IN
the/DT
second/JJ
half/NN
?/.
Or/CC
was/VBD
it/PRP
because/IN
Ms./NNP
Collins/NNP
had/VBD
gone/VBN
?/.
Either/DT
way/NN
it/PRP
was/VBD
a/DT
pity/NN
,/,
because/IN
Mr./NNP
Stolzman/NNP
offered/VBD
the/DT
most/RBS
substantial/JJ
music/NN
of/IN
the/DT
evening/NN
just/RB
after/IN
intermission/NN
:/:
Steve/NNP
Reich/NNP
's/POS
``/``
New/NNP
York/NNP
Counterpoint/NN
,/,
''/''
one/CD
of/IN
a/DT
series/NN
of/IN
Reich/NNP
works/NNS
that/WDT
juxtapose/VBP
a/DT
live/JJ
performer/NN
with/IN
recorded/JJ
tracks/NNS
of/IN
his/PRP$
or/CC
her/PRP$
own/JJ
playing/NN
./.
Mr./NNP
Reich/NNP
's/POS
new/JJ
``/``
Different/JJ
Trains/NNS
''/''
for/IN
string/NN
quartet/NN
uses/VBZ
the/DT
technique/NN
magisterially/RB
./.
Mr./NNP
Stoltzman/NNP
must/MD
have/VB
worried/VBN
that/IN
his/PRP$
audience/NN
might/MD
not/RB
be/VB
able/JJ
to/TO
take/VB
it/PRP
:/:
He/PRP
warned/VBD
us/PRP
in/IN
advance/NN
that/IN
``/``
New/NNP
York/NNP
Counterpoint/NN
''/''
lasts/VBZ
11/CD
1\/2/CD
minutes/NNS
./.
He/PRP
also/RB
unfortunately/RB
illustrated/VBD
this/DT
intricate/JJ
,/,
jazzy/JJ
tapestry/NN
with/IN
Mr./NNP
Pearson/NNP
's/POS
images/NNS
,/,
this/DT
time/NN
of/IN
geometric/JJ
or/CC
repeating/JJ
objects/NNS
,/,
in/IN
a/DT
kitschy/JJ
mirroring/NN
of/IN
the/DT
musical/JJ
structure/NN
that/WDT
was/VBD
thoroughly/RB
distracting/VBG
from/IN
Mr./NNP
Reich/NNP
's/POS
piece/NN
and/CC
Mr./NNP
Stoltzman/NNP
's/POS
elegant/JJ
execution/NN
of/IN
it/PRP
./.
The/DT
rest/NN
of/IN
the/DT
concert/NN
was/VBD
more/JJR
straight/JJ
jazz/NN
and/CC
mellow/JJ
sounds/NNS
written/VBN
by/IN
Charlie/NNP
Parker/NNP
,/,
Ornette/NNP
Coleman/NNP
,/,
Bill/NNP
Douglas/NNP
and/CC
Eddie/NNP
Gomez/NNP
,/,
with/IN
pictures/NNS
for/IN
the/DT
Douglas/NNP
pieces/NNS
./.
It/PRP
was/VBD
enjoyable/JJ
to/TO
hear/VB
accomplished/JJ
jazz/NN
without/IN
having/VBG
to/TO
sit/VB
in/IN
a/DT
smoke-filled/JJ
club/NN
,/,
but/CC
like/IN
the/DT
first/JJ
half/NN
,/,
much/JJ
of/IN
it/PRP
was/VBD
easy/JJ
to/TO
take/VB
and/CC
ultimately/RB
forgettable/JJ
./.
Is/VBZ
this/DT
the/DT
future/NN
of/IN
chamber/NN
music/NN
?/.
Managers/NNS
and/CC
presenters/NNS
insist/VBP
that/IN
chamber/NN
music/NN
concerts/NNS
are/VBP
a/DT
hard/JJ
sell/NN
,/,
but/CC
can/MD
audiences/NNS
really/RB
enjoy/VB
them/PRP
only/RB
if/IN
the/DT
music/NN
is/VBZ
purged/VBN
of/IN
threatening/JJ
elements/NNS
,/,
served/VBN
up/RB
in/IN
bite-sized/JJ
morsels/NNS
and/CC
accompanied/VBN
by/IN
visuals/NNS
?/.
What/WP
's/VBZ
next/JJ
?/.
Slides/NNS
to/TO
illustrate/VB
Shostakovich/NNP
quartets/NNS
?/.
It/PRP
was/VBD
not/RB
an/DT
unpleasant/JJ
evening/NN
,/,
certainly/RB
,/,
thanks/NNS
to/TO
the/DT
high/JJ
level/NN
of/IN
performance/NN
,/,
the/DT
compositional/JJ
talents/NNS
of/IN
Mr./NNP
Douglas/NNP
,/,
and/CC
the/DT
obvious/JJ
sincerity/NN
with/IN
which/WDT
Mr./NNP
Stoltzman/NNP
chooses/VBZ
his/PRP$
selections/NNS
./.
But/CC
it/PRP
was/VBD
neither/RB
deep/JJ
nor/CC
lasting/JJ
:/:
light/JJ
entertainment/NN
that/WDT
was/VBD
no/DT
substitute/NN
for/IN
an/DT
evening/NN
of/IN
Brahms/NNP
./.
Ms./NNP
Waleson/NNP
is/VBZ
a/DT
free-lance/JJ
writer/NN
based/VBN
in/IN
New/NNP
York/NNP
./.
One/CD
of/IN
Ronald/NNP
Reagan/NNP
's/POS
attributes/NNS
as/IN
President/NNP
was/VBD
that/IN
he/PRP
rarely/RB
gave/VBD
his/PRP$
blessing/NN
to/TO
the/DT
claptrap/NN
that/WDT
passes/VBZ
for/IN
``/``
consensus/NN
''/''
in/IN
various/JJ
international/JJ
institutions/NNS
./.
In/IN
fact/NN
,/,
he/PRP
liberated/VBD
the/DT
U.S./NNP
from/IN
one/CD
of/IN
the/DT
world/NN
's/VBZ
most/RBS
corrupt/JJ
organizations/NNS
--/:
UNESCO/NNP
./.
This/DT
is/VBZ
the/DT
U.N./NNP
group/NN
that/WDT
managed/VBD
to/TO
traduce/VB
its/PRP$
own/JJ
charter/NN
of/IN
promoting/VBG
education/NN
,/,
science/NN
and/CC
culture/NN
./.
Ever/RB
since/IN
,/,
the/DT
remaining/VBG
members/NNS
have/VBP
been/VBN
desperate/JJ
for/IN
the/DT
United/NNP
States/NNPS
to/TO
rejoin/VB
this/DT
dreadful/JJ
group/NN
./.
Now/RB
UNESCO/NNP
apologists/NNS
are/VBP
lobbying/VBG
President/NNP
Bush/NNP
to/TO
renege/VB
on/IN
President/NNP
Reagan/NNP
's/POS
decision/NN
to/TO
depart/VB
./.
But/CC
we/PRP
can/MD
think/VB
of/IN
many/JJ
reasons/NNS
to/TO
stay/VB
out/RB
for/IN
the/DT
foreseeable/JJ
future/NN
and/CC
well/RB
beyond/IN
./.
The/DT
U.S./NNP
,/,
along/IN
with/IN
Britain/NNP
and/CC
Singapore/NNP
,/,
left/VBD
the/DT
agency/NN
when/WRB
its/PRP$
anti-Western/JJ
ideology/NN
,/,
financial/JJ
corruption/NN
and/CC
top/JJ
leadership/NN
got/VBD
out/IN
of/IN
hand/NN
./.
The/DT
personal/JJ
antics/NNS
of/IN
agency/NN
Director/NNP
Amadou-Mahtar/NNP
M'Bow/NNP
drew/VBD
much/JJ
attention/NN
,/,
such/JJ
as/IN
when/WRB
several/JJ
of/IN
his/PRP$
top/JJ
aides/NNS
were/VBD
uncovered/VBN
as/IN
KGB/NNP
plants/NNS
and/CC
ejected/VBN
from/IN
France/NNP
and/CC
when/WRB
a/DT
mysterious/JJ
office/NN
fire/NN
was/VBD
set/VBN
just/RB
before/IN
Congress/NNP
sent/VBD
accountants/NNS
to/TO
trace/VB
U.S./NNP
funds/NNS
./.
Mr./NNP
M'Bow/NNP
was/VBD
an/DT
extreme/JJ
case/NN
,/,
but/CC
even/RB
his/PRP$
replacement/NN
,/,
the/DT
more/RBR
personally/RB
genial/JJ
Spanish/JJ
biochemist/NN
Federico/NNP
Mayor/NNP
,/,
has/VBZ
had/VBN
little/JJ
success/NN
at/IN
achieving/VBG
reforms/NNS
./.
Several/JJ
ridiculous/JJ
projects/NNS
continue/VBP
,/,
including/VBG
the/DT
``/``
New/JJ
International/JJ
Economic/JJ
Order/NN
,/,
''/''
which/WDT
means/VBZ
redistributionism/NN
from/IN
the/DT
West/NNP
to/TO
pay/VB
for/IN
everyone/NN
else/RB
's/POS
statism/NN
./.
The/DT
Orwellian/NNP
``/``
New/JJ
World/NN
Information/NN
Order/NN
''/''
would/MD
give/VB
government/NN
officials/NNS
rights/NNS
against/IN
the/DT
press/NN
;/:
journalists/NNS
would/MD
be/VB
obliged/VBN
to/TO
kowtow/VB
to/TO
their/PRP$
government/NN
,/,
which/WDT
would/MD
have/VB
licensing/NN
and/CC
censorship/NN
powers/NNS
and/CC
,/,
indeed/RB
,/,
duties/NNS
to/TO
block/VB
printing/NN
of/IN
``/``
wrong/JJ
''/''
ideas/NNS
./.
UNESCO/NNP
somehow/RB
converted/VBD
the/DT
founding/JJ
U.N./NNP
ideals/NNS
of/IN
individual/JJ
rights/NNS
and/CC
liberty/NN
into/IN
``/``
peoples/NNS
'/POS
rights/NNS
./.
''/''
Million-dollar/JJ
conferences/NNS
were/VBD
held/VBN
to/TO
chew/VB
on/IN
subjects/NNS
such/JJ
as/IN
``/``
ethical/JJ
responsibilities/NNS
of/IN
scientists/NNS
in/IN
support/NN
of/IN
disarmament/NN
''/''
and/CC
``/``
the/DT
impact/NN
of/IN
the/DT
activities/NNS
of/IN
transnational/JJ
corporations/NNS
./.
''/''
The/DT
agency/NN
was/VBD
so/RB
totally/RB
subverted/VBN
from/IN
the/DT
high/JJ
principles/NNS
of/IN
its/PRP$
founding/NN
that/IN
even/RB
the/DT
Soviets/NNPS
now/RB
wonder/VBP
about/IN
an/DT
agency/NN
that/WDT
seemed/VBD
so/RB
congenial/JJ
to/TO
them/PRP
./.
Glasnost/FW
may/MD
be/VB
partly/RB
responsible/JJ
,/,
but/CC
Soviet/NNP
Foreign/NNP
Minister/NNP
Eduard/NNP
Shevardnadze/NNP
last/JJ
year/NN
admitted/VBD
,/,
``/``
The/DT
exaggerated/JJ
ideological/JJ
approach/NN
undermined/VBD
tolerance/NN
intrinsic/JJ
to/TO
UNESCO/NNP
./.
''/''
UNESCO/NNP
is/VBZ
now/RB
holding/VBG
its/PRP$
biennial/JJ
meetings/NNS
in/IN
Paris/NNP
to/TO
devise/VB
its/PRP$
next/JJ
projects/NNS
./.
Mr./NNP
Mayor/NNP
's/POS
hope/NN
that/IN
references/NNS
to/TO
``/``
press/NN
freedom/NN
''/''
would/MD
survive/VB
unamended/JJ
seems/VBZ
doomed/VBN
to/TO
failure/NN
;/:
the/DT
current/JJ
phrasing/NN
is/VBZ
``/``
educating/VBG
the/DT
public/NN
and/CC
media/NNS
to/TO
avoid/VB
manipulation/NN
./.
''/''
He/PRP
has/VBZ
n't/RB
been/VBN
able/JJ
to/TO
replace/VB
the/DT
M'Bow/NNP
cabal/NN
./.
Soviets/NNPS
remain/VBP
in/IN
charge/NN
of/IN
education/NN
programs/NNS
,/,
a/DT
former/JJ
head/NN
of/IN
an/DT
African/JJ
military/JJ
tribunal/NN
for/IN
executions/NNS
is/VBZ
in/IN
charge/NN
of/IN
culture/NN
,/,
and/CC
a/DT
hard-line/JJ
Polish/JJ
communist/NN
in/IN
exile/NN
directs/VBZ
the/DT
human-rights/JJ
and/CC
peace/NN
division/NN
./.
Of/IN
the/DT
agency/NN
's/POS
2,750/CD
staff/NN
members/NNS
,/,
230/CD
are/VBP
in/IN
the/DT
field/NN
working/VBG
on/IN
actual/JJ
projects/NNS
,/,
such/JJ
as/IN
literacy/NN
and/CC
oceanographic/JJ
research/NN
./.
The/DT
position/NN
of/IN
the/DT
United/NNP
States/NNPS
,/,
which/WDT
once/RB
contributed/VBD
25/CD
%/NN
of/IN
the/DT
budget/NN
,/,
is/VBZ
that/IN
nothing/NN
has/VBZ
changed/VBN
./.
John/NNP
Bolton/NNP
,/,
the/DT
assistant/NN
secretary/NN
of/IN
state/NN
for/IN
international/JJ
organizations/NNS
,/,
told/VBD
Congress/NNP
that/IN
the/DT
continuing/VBG
``/``
statist/JJ
,/,
restrictive/JJ
,/,
nondemocratic/JJ
''/''
programs/NNS
make/VBP
rejoining/VBG
any/DT
time/NN
soon/RB
``/``
extremely/RB
unlikely/JJ
./.
''/''
This/DT
has/VBZ
n't/RB
much/RB
bothered/VBN
the/DT
UNESCO/NNP
delegates/NNS
,/,
who/WP
last/JJ
week/NN
could/MD
n't/RB
even/RB
agree/VB
to/TO
raise/VB
funds/NNS
by/IN
selling/VBG
off/RP
a/DT
fancy/JJ
19th-century/JJ
French/JJ
chateau/NN
the/DT
agency/NN
somehow/RB
owns/VBZ
./.
Other/JJ
countries/NNS
,/,
including/VBG
West/NNP
Germany/NNP
,/,
may/MD
have/VB
a/DT
hard/JJ
time/NN
justifying/VBG
continued/JJ
membership/NN
./.
We/PRP
see/VBP
an/DT
even/RB
stronger/JJR
argument/NN
against/IN
UNESCO/NNP
than/IN
its/PRP$
unsurprising/JJ
failure/NN
to/TO
reform/NN
./.
This/DT
is/VBZ
that/IN
the/DT
Reagan/NNP
Revolution/NNP
spanning/VBG
Eastern/NNP
Europe/NNP
and/CC
Tiananmen/NNP
Square/NNP
shows/VBZ
the/DT
power/NN
of/IN
ideas/NNS
unencumbered/JJ
by/IN
international/JJ
civil/JJ
servants/NNS
or/CC
government/NN
functionaries/NNS
./.
Free/JJ
markets/NNS
,/,
free/JJ
minds/NNS
and/CC
free/JJ
elections/NNS
have/VBP
an/DT
appeal/NN
that/WDT
seems/VBZ
to/TO
get/VB
muddled/VBN
only/RB
when/WRB
delivered/VBN
through/IN
U.N./NNP
organizations/NNS
--/:
which/WDT
of/IN
course/NN
are/VBP
made/VBN
up/RB
largely/RB
of/IN
governments/NNS
that/WDT
fear/VBP
these/DT
principles/NNS
at/IN
home/NN
./.
The/DT
Babelists/NNS
of/IN
the/DT
United/NNP
Nations/NNPS
are/VBP
experts/NNS
at/IN
obfuscation/NN
./.
This/DT
can/MD
have/VB
its/PRP$
purposes/NNS
at/IN
times/NNS
,/,
but/CC
there/EX
's/VBZ
no/DT
reason/NN
to/TO
cloud/VB
the/DT
importance/NN
and/CC
allure/NN
of/IN
Western/JJ
concepts/NNS
of/IN
freedom/NN
and/CC
justice/NN
./.
We/PRP
can/MD
see/VB
plenty/RB
of/IN
reasons/NNS
to/TO
stay/VB
out/RB
,/,
and/CC
none/NN
to/TO
rejoin/VB
UNESCO/NNP
./.
Researchers/NNS
at/IN
Plant/NNP
Genetic/NNP
Systems/NNP
N.V./NNP
in/IN
Belgium/NNP
said/VBD
they/PRP
have/VBP
developed/VBN
a/DT
genetic/JJ
engineering/NN
technique/NN
for/IN
creating/VBG
hybrid/JJ
plants/NNS
for/IN
a/DT
number/NN
of/IN
key/JJ
crops/NNS
./.
The/DT
researchers/NNS
said/VBD
they/PRP
have/VBP
isolated/VBN
a/DT
plant/NN
gene/NN
that/WDT
prevents/VBZ
the/DT
production/NN
of/IN
pollen/NN
./.
The/DT
gene/NN
thus/RB
can/MD
prevent/VB
a/DT
plant/NN
from/IN
fertilizing/VBG
itself/PRP
./.
Such/JJ
so-called/JJ
male-sterile/JJ
plants/NNS
can/MD
then/RB
be/VB
fertilized/VBN
by/IN
pollen/NN
from/IN
another/DT
strain/NN
of/IN
the/DT
plant/NN
,/,
thereby/RB
producing/VBG
hybrid/JJ
seed/NN
./.
The/DT
new/JJ
generation/NN
of/IN
plants/NNS
will/MD
possess/VB
the/DT
flourishing/JJ
,/,
high-production/JJ
trait/NN
known/VBN
as/IN
``/``
hybrid/JJ
vigor/NN
,/,
''/''
similar/JJ
to/TO
that/DT
now/RB
seen/VBN
in/IN
hybrid/JJ
corn/NN
./.
``/``
The/DT
development/NN
could/MD
have/VB
a/DT
dramatic/JJ
effect/NN
on/IN
farm/NN
production/NN
,/,
especially/RB
cotton/NN
,/,
''/''
said/VBD
Murray/NNP
Robinson/NNP
,/,
president/NN
of/IN
Delta/NNP
&/CC
Pine/NNP
Land/NNP
Co./NNP
,/,
a/DT
Southwide/NNP
Inc./NNP
subsidiary/NN
that/WDT
is/VBZ
one/CD
of/IN
the/DT
largest/JJS
cotton/NN
seed/NN
producers/NNS
in/IN
the/DT
U.S/NNP
./.
On/IN
a/DT
commercial/JJ
scale/NN
,/,
the/DT
sterilization/NN
of/IN
the/DT
pollen-producing/VBG
male/JJ|NN
part/NN
has/VBZ
only/RB
been/VBN
achieved/VBN
in/IN
corn/NN
and/CC
sorghum/NN
feed/NN
grains/NNS
./.
That/DT
's/VBZ
because/IN
the/DT
male/NN
part/NN
,/,
the/DT
tassel/NN
,/,
and/CC
the/DT
female/NN
,/,
the/DT
ear/NN
,/,
are/VBP
some/DT
distance/NN
apart/RB
on/IN
the/DT
corn/NN
plant/NN
./.
In/IN
a/DT
labor-intensive/JJ
process/NN
,/,
the/DT
seed/NN
companies/NNS
cut/VBD
off/RP
the/DT
tassels/NNS
of/IN
each/DT
plant/NN
,/,
making/VBG
it/PRP
male/JJ
sterile/JJ
./.
They/PRP
sow/VBP
a/DT
row/NN
of/IN
male-fertile/JJ
plants/NNS
nearby/RB
,/,
which/WDT
then/RB
pollinate/VBP
the/DT
male-sterile/JJ
plants/NNS
./.
The/DT
first/JJ
hybrid/JJ
corn/NN
seeds/NNS
produced/VBN
using/VBG
this/DT
mechanical/JJ
approach/NN
were/VBD
introduced/VBN
in/IN
the/DT
1930s/NNS
and/CC
they/PRP
yielded/VBD
as/RB
much/JJ
as/IN
20/CD
%/NN
more/JJR
corn/NN
than/IN
naturally/RB
pollinated/VBN
plants/NNS
./.
The/DT
vast/JJ
majority/NN
of/IN
the/DT
U.S./NNP
corn/NN
crop/NN
now/RB
is/VBZ
grown/VBN
from/IN
hybrid/JJ
seeds/NNS
produced/VBN
by/IN
seed/NN
companies/NNS
./.
A/DT
similar/JJ
technique/NN
is/VBZ
almost/RB
impossible/JJ
to/TO
apply/VB
to/TO
other/JJ
crops/NNS
,/,
such/JJ
as/IN
cotton/NN
,/,
soybeans/NNS
and/CC
rice/NN
./.
The/DT
male/JJ
part/NN
,/,
the/DT
anthers/NNS
of/IN
the/DT
plant/NN
,/,
and/CC
the/DT
female/NN
,/,
the/DT
pistils/NNS
,/,
of/IN
the/DT
same/JJ
plant/NN
are/VBP
within/IN
a/DT
fraction/NN
of/IN
an/DT
inch/NN
or/CC
even/RB
attached/VBN
to/TO
each/DT
other/JJ
./.
The/DT
anthers/NNS
in/IN
these/DT
plants/NNS
are/VBP
difficult/JJ
to/TO
clip/VB
off/RP
./.
In/IN
China/NNP
,/,
a/DT
great/JJ
number/NN
of/IN
workers/NNS
are/VBP
engaged/VBN
in/IN
pulling/VBG
out/RP
the/DT
male/JJ
organs/NNS
of/IN
rice/NN
plants/NNS
using/VBG
tweezers/NNS
,/,
and/CC
one-third/NN
of/IN
rice/NN
produced/VBN
in/IN
that/DT
country/NN
is/VBZ
grown/VBN
from/IN
hybrid/JJ
seeds/NNS
./.
At/IN
Plant/NNP
Genetic/NNP
Systems/NNPS
,/,
researchers/NNS
have/VBP
isolated/VBN
a/DT
pollen-inhibiting/JJ
gene/NN
that/WDT
can/MD
be/VB
inserted/VBN
in/IN
a/DT
plant/NN
to/TO
confer/VB
male/JJ
sterility/NN
./.
Jan/NNP
Leemans/NNP
,/,
research/NN
director/NN
,/,
said/VBD
this/DT
gene/NN
was/VBD
successfully/RB
introduced/VBN
in/IN
oil-producing/JJ
rapeseed/NN
plants/NNS
,/,
a/DT
major/JJ
crop/NN
in/IN
Europe/NNP
and/CC
Canada/NNP
,/,
using/VBG
as/IN
a/DT
carrier/NN
a/DT
``/``
promoter/NN
gene/NN
''/''
developed/VBN
by/IN
Robert/NNP
Goldberg/NNP
at/IN
the/DT
University/NNP
of/IN
California/NNP
in/IN
Los/NNP
Angeles/NNP
./.
The/DT
sterilizing/VBG
gene/NN
is/VBZ
expressed/VBN
just/RB
before/IN
the/DT
pollen/NN
is/VBZ
about/IN
to/TO
develop/VB
and/CC
it/PRP
deactivates/VBZ
the/DT
anthers/NNS
of/IN
every/DT
flower/NN
in/IN
the/DT
plant/NN
./.
Mr./NNP
Leemans/NNP
said/VBD
this/DT
genetic/JJ
manipulation/NN
does/VBZ
n't/RB
hurt/VB
the/DT
growth/NN
of/IN
that/DT
plant/NN
./.
The/DT
researchers/NNS
also/RB
pulled/VBD
off/RP
a/DT
second/JJ
genetic/JJ
engineering/NN
trick/NN
in/IN
order/NN
to/TO
get/VB
male-sterile/JJ
plants/NNS
in/IN
large/JJ
enough/JJ
numbers/NNS
to/TO
produce/VB
a/DT
commercial/JJ
hybrid/JJ
seed/NN
crop/NN
./.
They/PRP
attached/VBD
a/DT
second/JJ
gene/NN
,/,
for/IN
herbicide/NN
resistance/NN
,/,
to/TO
the/DT
pollen-inhibiting/JJ
gene/NN
./.
Both/DT
genes/NNS
are/VBP
then/RB
inserted/VBN
into/IN
a/DT
few/JJ
greenhouse/NN
plants/NNS
,/,
which/WDT
are/VBP
then/RB
pollinated/VBN
and/CC
allowed/VBN
to/TO
mature/VB
and/CC
produce/VB
seed/NN
./.
The/DT
laws/NNS
of/IN
heredity/NN
dictate/VBP
that/IN
half/NN
of/IN
the/DT
plants/NNS
springing/VBG
from/IN
these/DT
greenhouse-produced/JJ
seeds/NNS
will/MD
be/VB
male/NN
sterile/JJ
and/CC
herbicide/NN
resistant/JJ
and/CC
half/NN
will/MD
be/VB
male/NN
fertile/JJ
and/CC
herbicide/NN
susceptible/JJ
./.
The/DT
application/NN
of/IN
herbicide/NN
would/MD
kill/VB
off/RP
the/DT
male-fertile/JJ
plants/NNS
,/,
leaving/VBG
a/DT
large/JJ
field/NN
of/IN
male-sterile/JJ
plants/NNS
that/WDT
can/MD
be/VB
cross-pollinated/VBN
to/TO
produce/VB
hybrid/NN
seed/NN
./.
Mr./NNP
Leemans/NNP
said/VBD
the/DT
hybrid/NN
rapeseeds/NNS
created/VBN
with/IN
this/DT
genetic/JJ
engineering/NN
yield/NN
15/CD
%/NN
to/TO
30/CD
%/NN
more/JJR
output/NN
than/IN
the/DT
commercial/JJ
strains/NNS
used/VBN
currently/RB
./.
``/``
This/DT
technique/NN
is/VBZ
applicable/JJ
to/TO
a/DT
wide/JJ
variety/NN
of/IN
crops/NNS
,/,
''/''
he/PRP
said/VBD
,/,
and/CC
added/VBD
that/IN
some/DT
modifications/NNS
may/MD
be/VB
necessary/JJ
to/TO
accommodate/VB
the/DT
peculiarities/NNS
of/IN
each/DT
type/NN
of/IN
crop/NN
./.
He/PRP
said/VBD
the/DT
company/NN
is/VBZ
experimenting/VBG
with/IN
the/DT
technique/NN
on/IN
alfalfa/NN
,/,
and/CC
plans/VBZ
to/TO
include/VB
cotton/NN
and/CC
corn/NN
,/,
among/IN
other/JJ
crops/NNS
./.
He/PRP
said/VBD
that/IN
even/RB
though/IN
virtually/RB
all/DT
corn/NN
seeds/NNS
currently/RB
planted/VBN
are/VBP
hybrids/NNS
,/,
the/DT
genetic/JJ
approach/NN
will/MD
obviate/VB
the/DT
need/NN
for/IN
mechanical/JJ
emasculation/NN
of/IN
anthers/NNS
,/,
which/WDT
costs/VBZ
U.S./NNP
seed/NN
producers/NNS
about/IN
$/$
70/CD
million/CD
annually/RB
./.
In/IN
recent/JJ
years/NNS
,/,
demand/NN
for/IN
hybrid/NN
seeds/NNS
has/VBZ
spurred/VBN
research/NN
at/IN
a/DT
number/NN
of/IN
chemical/NN
and/CC
biotechnology/NN
companies/NNS
,/,
including/VBG
Monsanto/NNP
Co./NNP
,/,
Shell/NNP
Oil/NNP
Co./NNP
and/CC
Eli/NNP
Lilly/NNP
&/CC
Co/NNP
./.
One/CD
technique/NN
developed/VBN
by/IN
some/DT
of/IN
these/DT
companies/NNS
involves/VBZ
a/DT
chemical/NN
spray/NN
supposed/VBD
to/TO
kill/VB
only/RB
a/DT
plant/NN
's/POS
pollen/NN
./.
But/CC
there/EX
have/VBP
been/VBN
problems/NNS
with/IN
chemical/NN
sprays/NNS
damaging/VBG
plants/NNS
'/POS
female/JJ
reproductive/JJ
organs/NNS
and/CC
concern/NN
for/IN
the/DT
toxicity/NN
of/IN
such/JJ
chemical/NN
sprays/NNS
to/TO
humans/NNS
,/,
animals/NNS
and/CC
beneficial/JJ
insects/NNS
./.
However/RB
,/,
Paul/NNP
Johanson/NNP
,/,
Monsanto/NNP
's/POS
director/NN
of/IN
plant/NN
sciences/NNS
,/,
said/VBD
the/DT
company/NN
's/POS
chemical/NN
spray/NN
overcomes/VBZ
these/DT
problems/NNS
and/CC
is/VBZ
``/``
gentle/JJ
on/IN
the/DT
female/JJ
organ/NN
./.
''/''
Biosource/NNP
Genetics/NNP
Corp./NNP
,/,
Vacaville/NNP
,/,
Calif./NNP
,/,
is/VBZ
developing/VBG
a/DT
spray/NN
containing/VBG
a/DT
gene/NN
that/WDT
spreads/VBZ
from/IN
cell/NN
to/TO
cell/NN
and/CC
interferes/VBZ
with/IN
the/DT
genes/NNS
that/WDT
are/VBP
responsible/JJ
for/IN
producing/VBG
pollen/NN
./.
This/DT
gene/NN
,/,
called/VBN
``/``
gametocide/NN
,/,
''/''
is/VBZ
carried/VBN
into/IN
the/DT
plant/NN
by/IN
a/DT
virus/NN
that/WDT
remains/VBZ
active/JJ
for/IN
a/DT
few/JJ
days/NNS
./.
Robert/NNP
Erwin/NNP
,/,
president/NN
of/IN
Biosource/NNP
,/,
called/VBD
Plant/NNP
Genetic/NNP
's/POS
approach/NN
``/``
interesting/JJ
''/''
and/CC
``/``
novel/JJ
,/,
''/''
and/CC
``/``
complementary/JJ
rather/RB
than/IN
competitive/JJ
./.
''/''
``/``
There/EX
is/VBZ
a/DT
large/JJ
market/NN
out/IN
there/RB
hungry/JJ
for/IN
hybrid/JJ
seeds/NNS
,/,
''/''
he/PRP
said/VBD
./.
Mr./NNP
Robinson/NNP
of/IN
Delta/NNP
&/CC
Pine/NNP
,/,
the/DT
seed/NN
producer/NN
in/IN
Scott/NNP
,/,
Miss./NNP
,/,
said/VBD
Plant/NNP
Genetic/NNP
's/POS
success/NN
in/IN
creating/VBG
genetically/RB
engineered/VBN
male/NN
steriles/NNS
does/VBZ
n't/RB
automatically/RB
mean/VB
it/PRP
would/MD
be/VB
simple/JJ
to/TO
create/VB
hybrids/NNS
in/IN
all/DT
crops/NNS
./.
That/DT
's/VBZ
because/RB
pollination/NN
,/,
while/IN
easy/JJ
in/IN
corn/NN
because/IN
the/DT
carrier/NN
is/VBZ
wind/NN
,/,
is/VBZ
more/RBR
complex/JJ
and/CC
involves/VBZ
insects/NNS
as/IN
carriers/NNS
in/IN
crops/NNS
such/JJ
as/IN
cotton/NN
./.
``/``
It/PRP
's/VBZ
one/CD
thing/NN
to/TO
say/VB
you/PRP
can/MD
sterilize/VB
,/,
and/CC
another/DT
to/TO
then/RB
successfully/RB
pollinate/VB
the/DT
plant/NN
,/,
''/''
he/PRP
said/VBD
./.
Nevertheless/RB
,/,
he/PRP
said/VBD
,/,
he/PRP
is/VBZ
negotiating/VBG
with/IN
Plant/NNP
Genetic/NNP
to/TO
acquire/VB
the/DT
technology/NN
to/TO
try/VB
breeding/VBG
hybrid/JJ
cotton/NN
./.
A/DT
bitter/JJ
conflict/NN
with/IN
global/JJ
implications/NNS
has/VBZ
erupted/VBN
between/IN
Nomura/NNP
Securities/NNPS
Co./NNP
and/CC
Industrial/NNP
Bank/NNP
of/IN
Japan/NNP
,/,
two/CD
of/IN
the/DT
world/NN
's/VBZ
most/RBS
powerful/JJ
financial/JJ
companies/NNS
./.
The/DT
clash/NN
is/VBZ
a/DT
sign/NN
of/IN
a/DT
new/JJ
toughness/NN
and/CC
divisiveness/NN
in/IN
Japan/NNP
's/POS
once-cozy/JJ
financial/JJ
circles/NNS
./.
Not/RB
only/RB
are/VBP
Japan/NNP
's/POS
financial/JJ
institutions/NNS
putting/VBG
their/PRP$
enormous/JJ
clout/NN
to/TO
work/VB
;/:
increasingly/RB
they/PRP
're/VBP
squaring/VBG
off/RB
against/IN
one/CD
another/DT
in/IN
unprecedented/JJ
public/JJ
fashion/NN
./.
Already/RB
,/,
the/DT
consequences/NNS
are/VBP
being/VBG
felt/VBN
by/IN
other/JJ
players/NNS
in/IN
the/DT
financial/JJ
markets/NNS
--/:
even/JJ
governments/NNS
./.
What/WP
triggered/VBD
the/DT
latest/JJS
clash/NN
was/VBD
a/DT
skirmish/NN
over/IN
the/DT
timing/NN
of/IN
a/DT
New/NNP
Zealand/NNP
government/NN
bond/NN
issue/NN
./.
Nomura/NNP
was/VBD
attempting/VBG
to/TO
organize/VB
the/DT
50/CD
billion-yen/JJ
$/$
352/CD
million/CD
Japan/NNP
at/IN
a/DT
time/NN
when/WRB
many/JJ
Japanese/JJ
banks/NNS
,/,
led/VBN
by/IN
Industrial/NNP
Bank/NNP
of/IN
Japan/NNP
,/,
were/VBD
pressuring/VBG
the/DT
Wellington/NNP
government/NN
to/TO
help/VB
them/PRP
recover/VB
loans/NNS
made/VBN
to/TO
a/DT
defunct/JJ
investment/NN
bank/NN
that/WDT
had/VBD
been/VBN
owned/VBN
by/IN
New/NNP
Zealand/NNP
's/POS
civil-service/JJ
pension/NN
fund/NN
./.
Unwilling/JJ
to/TO
put/VB
up/RP
new/JJ
money/NN
for/IN
New/NNP
Zealand/NNP
until/IN
those/DT
debts/NNS
are/VBP
repaid/VBN
,/,
most/JJS
banks/NNS
refused/VBD
even/RB
to/TO
play/VB
administrative/JJ
roles/NNS
in/IN
the/DT
new/JJ
financing/NN
,/,
forcing/VBG
an/DT
embarrassed/JJ
Nomura/NNP
to/TO
postpone/VB
it/PRP
this/DT
week/NN
./.
The/DT
dispute/NN
shows/VBZ
clearly/RB
the/DT
global/JJ
power/NN
of/IN
Japan/NNP
's/POS
financial/JJ
titans/NNS
./.
Aside/RB
from/IN
Nomura/NNP
's/POS
injured/JJ
pride/NN
,/,
the/DT
biggest/JJS
victim/NN
so/RB
far/RB
has/VBZ
been/VBN
the/DT
New/NNP
Zealand/NNP
government/NN
./.
Barred/VBN
by/IN
its/PRP$
budget/NN
law/NN
from/IN
making/VBG
any/DT
new/JJ
domestic/JJ
bond/NN
issues/NNS
,/,
Wellington/NNP
's/POS
Debt/NNP
Management/NNP
Office/NNP
had/VBD
been/VBN
casting/VBG
abroad/RB
to/TO
raise/VB
the/DT
3/CD
billion/CD
New/NNP
Zealand/NNP
dollars/NNS
US$/$
1.76/CD
billion/CD
NZ$/$
4/CD
billion/CD
it/PRP
needs/VBZ
to/TO
come/VB
up/RB
with/IN
by/IN
the/DT
end/NN
of/IN
its/PRP$
fiscal/JJ
year/NN
next/IN
June/NNP
30/CD
./.
With/IN
Japan/NNP
's/POS
cash-flush/JJ
banks/NNS
aligned/VBN
against/IN
it/PRP
,/,
though/RB
,/,
raising/VBG
money/NN
may/MD
be/VB
difficult/JJ
./.
Not/RB
only/RB
can/MD
they/PRP
block/VB
Wellington/NNP
from/IN
raising/VBG
money/NN
in/IN
Japan/NNP
,/,
bankers/NNS
here/RB
say/VBP
,/,
but/CC
as/IN
the/DT
largest/JJS
underwriters/NNS
in/IN
the/DT
Eurobond/NN
market/NN
,/,
they/PRP
might/MD
be/VB
able/JJ
to/TO
scuttle/VB
borrowings/NNS
there/RB
,/,
too/RB
./.
New/NNP
Zealand/NNP
's/POS
finance/NN
minister/NN
,/,
David/NNP
Caygill/NNP
,/,
lashed/VBD
out/RB
at/IN
such/JJ
suggestions/NNS
./.
He/PRP
told/VBD
reporters/NNS
in/IN
Wellington/NNP
Tuesday/NNP
that/IN
the/DT
government/NN
had/VBD
n't/RB
guaranteed/VBN
the/DT
loans/NNS
to/TO
DFC/NNP
New/NNP
Zealand/NNP
Ltd./NNP
,/,
an/DT
investment/NN
bank/NN
80%-owned/JJ
by/IN
the/DT
National/NNP
Provident/NNP
Fund/NNP
,/,
and/CC
would/MD
n't/RB
bail/VB
it/PRP
out/RP
./.
``/``
It/PRP
may/MD
very/RB
well/RB
be/VB
what/WP
the/DT
Japanese/JJ
banks/NNS
want/VBP
,/,
''/''
he/PRP
told/VBD
Radio/NNP
New/NNP
Zealand/NNP
./.
``/``
I/PRP
think/VBP
it/PRP
would/MD
be/VB
irresponsible/JJ
and/CC
I/PRP
am/VBP
not/RB
about/IN
to/TO
be/VB
blackmailed/VBN
by/IN
Japanese/JJ
banks/NNS
or/CC
any/DT
other/JJ
international/JJ
interests/NNS
./.
''/''
No/DT
less/RBR
significant/JJ
than/IN
the/DT
Japanese/JJ
banks/NNS
'/POS
attempt/NN
to/TO
cut/VB
off/RP
funds/NNS
to/TO
pressure/VB
a/DT
foreign/JJ
government/NN
are/VBP
the/DT
implications/NNS
of/IN
a/DT
confrontation/NN
between/IN
Japan/NNP
securities/NNS
and/CC
banking/VBG
industries/NNS
./.
Anxiety/NN
is/VBZ
rising/VBG
over/IN
recent/JJ
government/NN
proposals/NNS
to/TO
eventually/RB
lower/VB
the/DT
strict/JJ
barriers/NNS
that/WDT
now/RB
separate/VBP
--/:
and/CC
protect/VBP
--/:
the/DT
two/CD
industries/NNS
from/IN
each/DT
other/JJ
./.
Both/DT
sides/NNS
are/VBP
jealously/RB
guarding/VBG
their/PRP$
turf/NN
,/,
and/CC
relations/NNS
have/VBP
been/VBN
at/IN
a/DT
flashpoint/NN
for/IN
months/NNS
./.
The/DT
banks/NNS
badly/RB
want/VBP
to/TO
break/VB
into/IN
all/DT
aspects/NNS
of/IN
the/DT
securities/NNS
business/NN
./.
Meanwhile/RB
,/,
the/DT
securities/NNS
companies/NNS
--/:
most/JJS
of/IN
them/PRP
smaller/JJR
than/IN
the/DT
banks/NNS
--/:
are/VBP
seeking/VBG
access/NN
only/RB
to/TO
limited/JJ
kinds/NNS
of/IN
banking/NN
that/WDT
would/MD
n't/RB
open/VB
them/PRP
to/TO
the/DT
full/JJ
brunt/NN
of/IN
competition/NN
from/IN
the/DT
banks/NNS
./.
Nomura/NNP
,/,
the/DT
world/NN
's/POS
biggest/JJS
securities/NNS
company/NN
largely/RB
by/IN
virtue/NN
of/IN
its/PRP$
protected/JJ
home/NN
field/NN
,/,
and/CC
Industrial/NNP
Bank/NNP
of/IN
Japan/NNP
,/,
Japan/NNP
's/POS
most/RBS
innovative/JJ
and/CC
aggressive/JJ
bank/NN
in/IN
capital/NN
markets/NNS
abroad/RB
,/,
captain/VBP
the/DT
opposing/VBG
sides/NNS
./.
And/CC
their/PRP$
suspicions/NNS
of/IN
each/DT
other/JJ
run/VBP
deep/RB
./.
In/IN
the/DT
past/JJ
year/NN
,/,
both/DT
have/VBP
tried/VBN
to/TO
stretch/VB
the/DT
limits/NNS
of/IN
their/PRP$
businesses/NNS
./.
Nomura/NNP
started/VBD
a/DT
credit-card/NN
venture/NN
with/IN
American/NNP
Express/NNP
Co./NNP
that/WDT
allowed/VBD
cardholders/NNS
to/TO
use/VB
their/PRP$
Nomura/NNP
securities/NNS
accounts/NNS
like/IN
a/DT
bank/NN
account/NN
,/,
attracting/VBG
the/DT
wrath/NN
of/IN
banks/NNS
./.
And/CC
Industrial/NNP
Bank/NNP
of/IN
Japan/NNP
started/VBD
up/RP
a/DT
London/NNP
securities/NNS
subsidiary/NN
that/WDT
sells/VBZ
Japanese/JJ
stocks/NNS
to/TO
non-Japanese/JJ
institutions/NNS
overseas/RB
,/,
a/DT
move/NN
that/WDT
stirred/VBD
the/DT
anger/NN
of/IN
the/DT
stock/NN
brokerage/NN
firms/NNS
./.
The/DT
New/NNP
Zealand/NNP
bond/NN
issue/NN
simply/RB
has/VBZ
brought/VBN
the/DT
two/CD
institutions/NNS
face-to-face/RB
./.
ITEL/NNP
CORP./NNP
reported/VBD
third-quarter/JJ
earnings/NNS
,/,
which/WDT
were/VBD
mistakenly/RB
shown/VBN
in/IN
the/DT
Quarterly/JJ
Earnings/NNS
Surprises/NNS
table/NN
in/IN
yesterday/NN
's/POS
edition/NN
to/TO
be/VB
lower/JJR
than/IN
the/DT
average/NN
of/IN
analysts/NNS
'/POS
estimates/NNS
./.
On/IN
a/DT
pretax/JJ
basis/NN
,/,
Itel/NNP
's/POS
third-quarter/JJ
earnings/NNS
of/IN
30/CD
cents/NNS
a/DT
share/NN
were/VBD
actually/RB
7.14/CD
%/NN
higher/JJR
than/IN
the/DT
average/NN
of/IN
estimates/NNS
./.
Quarterly/JJ
Earnings/NNS
Surprises/NNS
''/''
--/:
WSJ/NNP
Oct./NNP
31/CD
,/,
1989/CD
)/)
Raymond/NNP
E./NNP
Ross/NNP
,/,
53/CD
years/NNS
old/JJ
,/,
formerly/RB
group/NN
vice/NN
president/NN
,/,
U.S./NNP
plastics/NNS
machinery/NN
,/,
at/IN
this/DT
machine/NN
tool/NN
,/,
plastics/NNS
machinery/NN
and/CC
robots/NNS
concern/NN
,/,
was/VBD
named/VBN
senior/JJ
vice/NN
president/NN
,/,
industrial/JJ
systems/NNS
,/,
succeeding/VBG
David/NNP
A./NN
Entrekin/NNP
,/,
who/WP
resigned/VBD
Monday/NNP
./.
John/NNP
A./NN
Conlon/NNP
Jr./NNP
,/,
45/CD
,/,
was/VBD
named/VBN
a/DT
managing/VBG
director/NN
at/IN
this/DT
investment-banking/JJ
company/NN
./.
He/PRP
will/MD
be/VB
in/IN
charge/NN
of/IN
research/NN
,/,
equity/NN
sales/NNS
and/CC
trading/NN
,/,
and/CC
the/DT
syndicate/NN
operation/NN
of/IN
Rothschild/NNP
./.
Mr./NNP
Conlon/NNP
was/VBD
executive/NN
vice/NN
president/NN
and/CC
director/NN
of/IN
the/DT
equity/NN
division/NN
of/IN
the/DT
international/JJ
division/NN
of/IN
Nikko/NNP
Securities/NNPS
Co/NNP
./.
As/IN
Yogi/NNP
Berra/NNP
might/MD
say/VB
,/,
it/PRP
's/VBZ
deja/NN
vu/NN
all/RB
over/RB
again/RB
./.
Crouched/VBN
at/IN
shortstop/NN
,/,
Bert/NNP
Campaneris/NNP
,/,
once/RB
Oakland/NNP
's/POS
master/NN
thief/NN
,/,
effortlessly/RB
scoops/VBZ
up/RP
a/DT
groundball/NN
and/CC
flips/VBZ
it/PRP
to/TO
second/JJ
./.
In/IN
the/DT
outfield/NN
,/,
Paul/NNP
Blair/NNP
,/,
the/DT
Orioles/NNP
'/POS
eight-time/JJ
Gold/NNP
Glove/NNP
winner/NN
,/,
elegantly/RB
shags/VBZ
a/DT
fly/NN
./.
On/IN
the/DT
mound/NN
,/,
former/JJ
Red/NNP
Sox/NNP
great/JJ
Luis/NNP
Tiant/NNP
,/,
the/DT
wily/JJ
master/NN
of/IN
1,001/CD
moves/NNS
,/,
throws/VBZ
an/DT
off-speed/JJ
strike/NN
./.
``/``
Babies/NNS
,/,
kiddies/NNS
,/,
''/''
growls/VBZ
their/PRP$
manager/NN
--/:
a/DT
fellow/NN
named/VBN
Earl/NNP
Weaver/NNP
,/,
who/WP
,/,
in/IN
a/DT
different/JJ
time/NN
,/,
handled/VBD
four/CD
World/NNP
Series/NNP
teams/NNS
and/CC
now/RB
handles/VBZ
the/DT
Gold/NNP
Coast/NNP
Suns/NNPS
./.
``/``
Old-time/JJ
kiddies/NNS
,/,
''/''
he/PRP
says/VBZ
./.
Perhaps/RB
./.
But/CC
for/IN
the/DT
next/JJ
few/JJ
months/NNS
,/,
these/DT
boys/NNS
of/IN
summers/NNS
long/JJ
past/NN
are/VBP
going/VBG
to/TO
be/VB
reveling/VBG
in/IN
an/DT
Indian/JJ
summer/NN
of/IN
the/DT
soul/NN
./.
Now/RB
that/IN
the/DT
baseball/NN
season/NN
is/VBZ
officially/RB
over/RP
,/,
you/PRP
see/VBP
,/,
it/PRP
's/VBZ
time/NN
for/IN
a/DT
new/JJ
season/NN
to/TO
begin/VB
./.
Today/NN
is/VBZ
the/DT
debut/NN
of/IN
the/DT
Senior/NNP
Professional/NNP
Baseball/NNP
Association/NNP
,/,
a/DT
new/JJ
eight-team/JJ
pro/JJ
sports/NNS
circuit/NN
,/,
modeled/VBN
after/IN
the/DT
highly/RB
successful/JJ
senior/JJ
tennis/NN
and/CC
golf/NN
tours/NNS
and/CC
complete/JJ
with/IN
good/JJ
salaries/NNS
,/,
a/DT
cable/NN
television/NN
contract/NN
and/CC
even/RB
expansion/NN
plans/NNS
./.
One/CD
hundred/CD
and/CC
ninety/CD
two/CD
former/JJ
greats/NNS
,/,
near/JJ
greats/NNS
,/,
hardly/RB
knowns/NNS
and/CC
unknowns/NNS
begin/VBP
a/DT
72-game/JJ
,/,
three-month/JJ
season/NN
in/IN
spring-training/NN
stadiums/NNS
up/RB
and/CC
down/RB
Florida/NNP
./.
For/IN
everyone/NN
involved/VBN
,/,
it/PRP
's/VBZ
one/CD
more/JJR
swig/NN
of/IN
that/DT
elixir/NN
of/IN
youth/NN
,/,
baseball/NN
./.
``/``
Someone/NN
always/RB
makes/VBZ
you/PRP
quit/VB
,/,
''/''
says/VBZ
legendary/JJ
St./NNP
Louis/NNP
Cardinals/NNPS
centerfielder/NN
Curt/NNP
Flood/NNP
,/,
the/DT
league/NN
's/POS
commissioner/NN
./.
``/``
You/PRP
feel/VBP
you/PRP
want/VBP
one/CD
more/JJR
--/:
one/NN
more/JJR
at-bat/NN
,/,
one/CD
more/JJR
hit/NN
,/,
one/CD
more/JJR
game/NN
./.
''/''
Until/IN
the/DT
baby-faced/JJ
heroes/NNS
of/IN
today/NN
reclaim/VBP
these/DT
ballparks/NNS
for/IN
spring/NN
training/NN
,/,
there/EX
is/VBZ
one/CD
more/JJR
./.
And/CC
not/RB
just/RB
for/IN
the/DT
players/NNS
./.
It/PRP
's/VBZ
one/CD
more/JJR
for/IN
the/DT
baseball-loving/JJ
lawyers/NNS
,/,
accountants/NNS
and/CC
real/JJ
estate/NN
developers/NNS
who/WP
ponied/VBD
up/RP
about/IN
$/$
1/CD
million/CD
each/DT
for/IN
the/DT
chance/NN
to/TO
be/VB
an/DT
owner/NN
,/,
to/TO
step/VB
into/IN
the/DT
shoes/NNS
of/IN
a/DT
Gene/NNP
Autry/NNP
or/CC
have/VB
a/DT
beer/NN
with/IN
Rollie/NNP
Fingers/NNP
./.
``/``
Nothing/NN
can/MD
be/VB
better/JJR
than/IN
this/DT
,/,
''/''
says/VBZ
Don/NNP
Sider/NNP
,/,
owner/NN
of/IN
the/DT
West/NNP
Palm/NNP
Beach/NNP
Tropics/NNPS
./.
Early/RB
in/IN
the/DT
morning/NN
Mr./NNP
Sider/NNP
,/,
an/DT
estate/NN
lawyer/NN
,/,
pores/VBZ
over/IN
last/JJ
wills/NNS
and/CC
testaments/NNS
./.
Midmorning/NN
,/,
he/PRP
dons/VBZ
an/DT
orange-and-blue/JJ
uniform/NN
and/CC
,/,
for/IN
fun/NN
,/,
may/MD
field/VB
a/DT
bunt/NN
from/IN
Dave/NNP
Kingman/NNP
./.
It/PRP
's/VBZ
one/CD
more/JJR
,/,
too/RB
,/,
for/IN
the/DT
fans/NNS
who/WP
dream/VBP
of/IN
a/DT
season/NN
that/WDT
never/RB
ends/VBZ
./.
``/``
I/PRP
feel/VBP
like/IN
a/DT
little/JJ
kid/NN
,/,
''/''
says/VBZ
a/DT
gleeful/JJ
Alex/NNP
de/FW
Castro/NNP
,/,
a/DT
car/NN
salesman/NN
,/,
who/WP
has/VBZ
stopped/VBN
by/IN
a/DT
workout/NN
of/IN
the/DT
Suns/NNPS
to/TO
slip/VB
six/CD
Campaneris/NNP
cards/NNS
to/TO
the/DT
Great/JJ
Man/NN
Himself/PRP
to/TO
be/VB
autographed/VBN
./.
The/DT
league/NN
's/POS
promoters/NNS
hope/VBP
retirees/NNS
and/CC
tourists/NNS
will/MD
join/VB
die-hard/JJ
fans/NNS
like/IN
Mr./NNP
de/FW
Castro/NNP
and/CC
pack/VB
the/DT
stands/NNS
to/TO
see/VB
the/DT
seniors/NNS
./.
The/DT
league/NN
is/VBZ
the/DT
brainchild/NN
of/IN
Colorado/NNP
real/JJ
estate/NN
developer/NN
James/NNP
Morley/NNP
--/:
once/RB
a/DT
minor-leaguer/NN
himself/PRP
--/:
who/WP
says/VBZ
he/PRP
had/VBD
the/DT
idea/NN
last/JJ
January/NNP
while/IN
lying/VBG
on/IN
a/DT
beach/NN
in/IN
Australia/NNP
./.
When/WRB
he/PRP
sent/VBD
letters/NNS
offering/VBG
1,250/CD
retired/JJ
major/JJ
leaguers/NNS
the/DT
chance/NN
of/IN
another/DT
season/NN
,/,
730/CD
responded/VBD
./.
Eventually/RB
,/,
about/IN
250/CD
made/VBD
the/DT
trip/NN
to/TO
Florida/NNP
to/TO
compete/VB
for/IN
the/DT
available/JJ
slots/NNS
./.
Players/NNS
have/VBP
to/TO
be/VB
35/CD
or/CC
older/JJR
,/,
except/IN
for/IN
catchers/NNS
,/,
who/WP
are/VBP
eligible/JJ
at/IN
32/CD
because/IN
life/NN
behind/IN
the/DT
plate/NN
is/VBZ
so/RB
rough/JJ
./.
For/IN
some/DT
players/NNS
,/,
the/DT
lure/NN
is/VBZ
money/NN
--/:
up/RB
to/TO
$/$
15,000/CD
a/DT
month/NN
./.
Others/NNS
,/,
just/RB
released/VBN
from/IN
the/DT
majors/NNS
,/,
hope/VBP
the/DT
senior/JJ
league/NN
will/MD
be/VB
their/PRP$
bridge/NN
back/RB
into/IN
the/DT
big-time/JJ
./.
But/CC
as/IN
they/PRP
hurl/VBP
fireballs/NNS
that/WDT
smolder/VBP
rather/RB
than/IN
burn/VBP
,/,
and/CC
relive/VBP
old/JJ
duels/NNS
in/IN
the/DT
sun/NN
,/,
it/PRP
's/VBZ
clear/JJ
that/IN
most/JJS
are/VBP
there/RB
to/TO
make/VB
their/PRP$
fans/NNS
cheer/VB
again/RB
or/CC
recapture/VB
the/DT
camaraderie/NN
of/IN
seasons/NNS
past/JJ
or/CC
prove/VB
to/TO
themselves/PRP
and/CC
their/PRP$
colleagues/NNS
that/IN
they/PRP
still/RB
have/VBP
it/PRP
--/:
or/CC
something/NN
close/RB
to/TO
it/PRP
./.
``/``
My/PRP$
fastball/NN
is/VBZ
good/JJ
./.
Real/RB
good/JJ
,/,
''/''
says/VBZ
39-year-old/JJ
Pete/NNP
Broberg/NNP
,/,
working/VBG
in/IN
the/DT
midday/NN
heat/NN
of/IN
the/DT
Tropics/NNPS
camp/NN
./.
Mr./NNP
Broberg/NNP
,/,
who/WP
started/VBD
with/IN
the/DT
now-defunct/JJ
Washington/NNP
Senators/NNPS
,/,
says/VBZ
that/IN
when/WRB
he/PRP
left/VBD
baseball/NN
in/IN
1978/CD
,/,
he/PRP
``/``
never/RB
looked/VBD
back/RB
./.
''/''
For/IN
a/DT
long/JJ
time/NN
,/,
he/PRP
ignored/VBD
baseball/NN
altogether/RB
,/,
even/RB
the/DT
sports/NNS
pages/NNS
./.
Now/RB
Mr./NNP
Broberg/NNP
,/,
a/DT
lawyer/NN
,/,
claims/VBZ
he/PRP
'd/MD
play/VB
for/IN
free/RB
./.
``/``
You/PRP
ca/MD
n't/RB
give/VB
it/PRP
up/RP
that/IN
easily/RB
,/,
''/''
he/PRP
says/VBZ
./.
``/``
I/PRP
tried/VBD
./.
''/''
The/DT
nagging/JJ
memory/NN
of/IN
one/CD
afternoon/NN
fourteen/CD
years/NNS
ago/RB
drove/VBD
Jim/NNP
Gideon/NNP
,/,
a/DT
lean/JJ
36-year-old/JJ
righthander/NN
to/TO
take/VB
a/DT
four-month/JJ
leave/NN
from/IN
selling/VBG
insurance/NN
in/IN
Texas/NNP
to/TO
try/VB
out/RB
for/IN
Mr./NNP
Weaver/NNP
's/POS
team/NN
./.
``/``
It/PRP
does/VBZ
n't/RB
replace/VB
pitching/VBG
in/IN
the/DT
majors/NNS
,/,
but/CC
it/PRP
proves/VBZ
to/TO
me/PRP
that/IN
I/PRP
would/MD
have/VB
been/VBN
able/JJ
to/TO
play/VB
if/IN
I/PRP
'd/MD
stayed/VBN
healthy/JJ
,/,
''/''
he/PRP
says/VBZ
./.
Back/RB
in/IN
1975/CD
,/,
late/RB
in/IN
the/DT
season/NN
,/,
a/DT
then-21/JJ
Mr./NNP
Gideon/NNP
made/VBD
his/PRP$
only/JJ
major/JJ
league/NN
appearance/NN
,/,
five/CD
and/CC
two-thirds/NNS
innings/NN
for/IN
the/DT
Texas/NNP
Rangers/NNPS
against/IN
the/DT
Chicago/NNP
White/NNP
Sox/NNPS
./.
He/PRP
gave/VBD
up/RP
seven/CD
hits/NNS
,/,
walked/VBD
five/CD
and/CC
did/VBD
n't/RB
get/VB
a/DT
decision/NN
./.
Arm/NN
troubles/NNS
forced/VBD
him/PRP
back/RB
to/TO
the/DT
minors/NNS
the/DT
next/JJ
year/NN
./.
``/``
There/EX
's/VBZ
a/DT
satisfaction/NN
in/IN
going/VBG
against/IN
the/DT
rules/NNS
,/,
''/''
offers/VBZ
Will/NNP
McEnaney/NNP
,/,
once/RB
a/DT
stopper/NN
with/IN
Cincinnati/NNP
's/POS
Big/JJ
Red/JJ
Machine/NN
./.
He/PRP
means/VBZ
the/DT
rule/NN
that/IN
a/DT
player/NN
ca/MD
n't/RB
cut/VB
it/PRP
after/IN
a/DT
certain/JJ
age/NN
./.
These/DT
days/NNS
he/PRP
hustles/VBZ
to/TO
house-painting/JJ
jobs/NNS
in/IN
his/PRP$
Chevy/NNP
pickup/NN
before/IN
and/CC
after/IN
training/NN
with/IN
the/DT
Tropics/NNPS
./.
While/IN
sipping/VBG
a/DT
beer/NN
after/IN
practice/NN
,/,
he/PRP
vividly/RB
recounts/VBZ
getting/VBG
the/DT
Red/NNP
Sox/NNPS
's/POS
Carl/NNP
Yastrzemski/NNP
to/TO
pop/VB
out/RB
to/TO
end/VB
the/DT
1975/CD
World/NNP
Series/NNP
,/,
and/CC
repeating/VBG
the/DT
feat/NN
against/IN
the/DT
Yankees/NNPS
'/POS
Roy/NNP
White/NNP
in/IN
1976/CD
./.
Some/DT
of/IN
the/DT
game/NN
's/POS
reigning/VBG
philosophers/NNS
dislike/VBP
the/DT
idea/NN
of/IN
middle-aged/JJ
men/NNS
attempting/VBG
a/DT
young/JJ
man/NN
's/POS
sport/NN
./.
``/``
I/PRP
personally/RB
do/VBP
n't/RB
enjoy/VB
seeing/VBG
players/NNS
who/WP
I/PRP
remember/VBP
vividly/RB
from/IN
their/PRP$
playing/JJ
days/NNS
running/VBG
about/RB
and/CC
being/VBG
gallant/JJ
about/IN
their/PRP$
deficiencies/NNS
,/,
''/''
says/VBZ
Roger/NNP
Angell/NNP
,/,
New/NNP
Yorker/NNP
magazine/NN
's/POS
resident/JJ
baseball/NN
sage/NN
./.
``/``
I/PRP
feel/VBP
people/NNS
should/MD
be/VB
allowed/VBN
to/TO
remember/VB
players/NNS
as/IN
they/PRP
were/VBD
./.
''/''
Worse/JJR
,/,
says/VBZ
baseball/NN
author/NN
Lawrence/NNP
Ritter/NNP
,/,
``/``
Someone/NN
will/MD
get/VB
a/DT
heart/NN
attack/NN
and/CC
that/DT
will/MD
be/VB
the/DT
end/NN
of/IN
the/DT
whole/JJ
story/NN
./.
''/''
But/CC
the/DT
ballplayers/NNS
disagree/VBP
./.
Most/JJS
are/VBP
trim/JJ
./.
Some/DT
have/VBP
been/VBN
training/VBG
for/IN
months/NNS
;/:
others/NNS
only/RB
recently/RB
left/VBD
active/JJ
status/NN
./.
No/DT
one/NN
has/VBZ
worked/VBN
out/RP
the/DT
players/NNS
'/POS
average/NN
age/NN
,/,
but/CC
most/JJS
appear/VB
to/TO
be/VB
in/IN
their/PRP$
late/JJ
30s/NNS
./.
there/EX
's/VBZ
pride/NN
./.
``/``
I/PRP
'm/VBP
not/RB
going/VBG
to/TO
look/VB
stupid/JJ
,/,
''/''
vows/VBZ
former/JJ
Pittsburgh/NNP
Pirate/NNP
second/JJ
baseman/NN
Rennie/NNP
Stennett/NNP
,/,
sweat/NN
dotting/VBG
his/PRP$
brow/NN
as/IN
he/PRP
prepares/VBZ
for/IN
some/DT
practice/NN
swings/NNS
./.
``/``
It/PRP
's/VBZ
going/VBG
to/TO
be/VB
a/DT
tough/JJ
league/NN
,/,
''/''
promises/VBZ
the/DT
47-year-old/JJ
Mr./NNP
Campaneris/NNP
./.
``/``
There/EX
will/MD
be/VB
a/DT
lot/NN
of/IN
malice/NN
./.
''/''
Men/NNS
who/WP
have/VBP
played/VBN
hard/RB
all/DT
their/PRP$
lives/NNS
are/VBP
n't/RB
about/IN
to/TO
change/VB
their/PRP$
habits/NNS
,/,
he/PRP
says/VBZ
./.
Nonetheless/RB
,/,
one/PRP
ca/MD
n't/RB
help/VB
wonder/VB
whether/IN
the/DT
game/NN
will/MD
be/VB
just/RB
a/DT
little/JJ
bit/NN
slower/JJR
./.
At/IN
the/DT
weatherbeaten/JJ
Pompano/NNP
Beach/NNP
municipal/JJ
stadium/NN
,/,
Mr./NNP
Blair/NNP
,/,
the/DT
45-year-old/JJ
former/JJ
Oriole/NNP
,/,
knows/VBZ
his/PRP$
power/NN
is/VBZ
n't/RB
what/WP
it/PRP
used/VBD
to/TO
be/VB
./.
So/RB
he/PRP
adjusts/VBZ
./.
He/PRP
no/RB
longer/RBR
crowds/VBZ
the/DT
plate/NN
./.
He/PRP
's/VBZ
not/RB
thinking/VBG
about/IN
home/NN
runs/NNS
anymore/RB
,/,
just/RB
base/NN
hits/NNS
./.
Still/RB
,/,
``/``
how/WRB
sweet/JJ
it/PRP
is/VBZ
,/,
''/''
he/PRP
says/VBZ
,/,
savoring/VBG
the/DT
fat/JJ
sound/NN
of/IN
the/DT
well-hit/JJ
line/NN
drive/NN
that/IN
bounces/VBZ
off/RB|IN
the/DT
center/JJ
field/NN
wall/NN
./.
And/CC
do/VBP
n't/RB
expect/VB
many/JJ
complete/JJ
games/NNS
by/IN
pitchers/NNS
--/:
perhaps/RB
three/CD
out/IN
of/IN
288/CD
,/,
laughs/VBZ
Mr./NNP
Fingers/NNP
,/,
the/DT
former/JJ
Oakland/NNP
reliever/NN
./.
Expect/VB
``/``
tricky/JJ
''/''
stuff/NN
from/IN
pitchers/NNS
,/,
says/VBZ
Mr./NNP
Weaver/NNP
,/,
the/DT
manager/NN
./.
Expect/VB
brushbacks/NNS
but/CC
no/DT
beanballs/NNS
,/,
says/VBZ
Mr./NNP
McEnaney/NNP
./.
Even/RB
expect/VB
stolen/VBN
bases/NNS
,/,
says/VBZ
the/DT
wiry/JJ
and/CC
fit/JJ
Mr./NNP
Campaneris/NNP
:/:
``/``
If/IN
you/PRP
know/VBP
how/WRB
to/TO
slide/VB
,/,
it/PRP
's/VBZ
no/DT
problem/NN
,/,
''/''
he/PRP
says/VBZ
./.
And/CC
expect/VB
slower/JJR
fastballs/NNS
./.
``/``
I/PRP
'm/VBP
not/RB
so/RB
young/JJ
anymore/RB
,/,
''/''
concedes/VBZ
the/DT
cigar-chomping/JJ
,/,
48-year-old/JJ
Mr./NNP
Tiant/NNP
./.
``/``
I/PRP
wo/MD
n't/RB
be/VB
throwing/VBG
90/CD
mph/NN
,/,
but/CC
I/PRP
will/MD
throw/VB
80-plus/JJ
,/,
''/''
he/PRP
says/VBZ
./.
White-haired/JJ
Pedro/NNP
Ramos/NNP
,/,
at/IN
54/CD
the/DT
league/NN
's/POS
oldest/JJS
player/NN
and/CC
a/DT
pitcher-coach/NN
with/IN
the/DT
Suns/NNPS
,/,
has/VBZ
lost/VBN
even/RB
more/JJR
speed/NN
./.
Stuffing/VBG
a/DT
wad/NN
of/IN
Red/NNP
Man/NN
into/IN
his/PRP$
cheek/NN
,/,
he/PRP
admits/VBZ
the/DT
fastball/NN
he/PRP
brought/VBD
into/IN
the/DT
majors/NNS
in/IN
1955/CD
has/VBZ
become/VBN
a/DT
slowball/NN
./.
Its/PRP$
maximum/JJ
velocity/NN
is/VBZ
72/CD
mph/NN
./.
But/CC
he/PRP
is/VBZ
n't/RB
worried/JJ
./.
He/PRP
will/MD
compensate/VB
with/IN
the/DT
guile/NN
learned/VBN
from/IN
his/PRP$
years/NNS
in/IN
the/DT
majors/NNS
./.
He/PRP
has/VBZ
good/JJ
control/NN
./.
He/PRP
will/MD
keep/VB
the/DT
ball/NN
down/RP
,/,
move/VB
it/PRP
around/RB
./.
After/IN
all/DT
,/,
he/PRP
says/VBZ
,/,
``/``
Even/RB
to/TO
make/VB
love/VB
,/,
you/PRP
need/VBP
experience/VB
./.
''/''
Alltel/NNP
Corp./NNP
said/VBD
it/PRP
will/MD
acquire/VB
the/DT
55/CD
%/NN
of/IN
Pond/NNP
Branch/NNP
Telephone/NNP
Company/NNP
Inc./NNP
's/POS
cellular/JJ
franchise/NN
that/IN
it/PRP
does/VBZ
n't/RB
own/VB
already/RB
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Alltel/NNP
holds/VBZ
45/CD
%/NN
of/IN
the/DT
franchise/NN
,/,
which/WDT
has/VBZ
operations/NNS
in/IN
Aiken/NNP
,/,
S.C./NNP
,/,
and/CC
Augusta/NNP
,/,
Ga/NNP
./.
Alltel/NNP
,/,
which/WDT
provides/VBZ
local/JJ
telephone/NN
service/NN
in/IN
25/CD
states/NNS
,/,
said/VBD
it/PRP
exercised/VBD
its/PRP$
right/NN
of/IN
first/JJ
refusal/NN
following/VBG
an/DT
offer/NN
from/IN
an/DT
undisclosed/JJ
third/JJ
party/NN
to/TO
acquire/VB
the/DT
majority/NN
position/NN
in/IN
the/DT
franchise/NN
./.
Stewart/NNP
&/SYM
Stevenson/NNP
Services/NNPS
Inc./NNP
said/VBD
it/PRP
received/VBD
two/CD
contracts/NNS
totaling/VBG
$/$
19/CD
million/CD
to/TO
build/VB
gas-turbine/JJ
generators/NNS
./.
The/DT
separate/JJ
contracts/NNS
were/VBD
from/IN
Paragould/NNP
Light/NNP
&/CC
Water/NNP
Commission/NNP
,/,
a/DT
utility/NN
in/IN
Paragould/NNP
,/,
Ark./NNP
,/,
and/CC
PSE/NNP
Inc./NNP
,/,
a/DT
cogeneration-plant/NN
operator/NN
in/IN
Houston/NNP
./.
Stewart/NNP
&/CC
Stevenson/NNP
makes/VBZ
equipment/NN
powered/VBN
with/IN
diesel/NN
and/CC
gas/NN
turbines/NNS
./.
Liberty/NNP
National/NNP
Bancorp/NNP
said/VBD
its/PRP$
acquisition/NN
of/IN
Florence/NNP
Deposit/NNP
Bank/NNP
,/,
Florence/NNP
,/,
Ky./NNP
,/,
first/RB
announced/VBN
in/IN
April/NNP
,/,
has/VBZ
been/VBN
completed/VBN
in/IN
a/DT
transaction/NN
valued/VBN
at/IN
$/$
13.1/CD
million/CD
./.
Liberty/NNP
National/NNP
exchanged/VBD
about/IN
78.64/CD
shares/NNS
of/IN
its/PRP$
common/JJ
stock/NN
for/IN
each/DT
of/IN
Florence/NNP
Deposit/NNP
's/POS
5,600/CD
shares/NNS
outstanding/JJ
./.
Liberty/NNP
National/NNP
,/,
a/DT
bank/NN
holding/VBG
company/NN
,/,
has/VBZ
assets/NNS
exceeding/VBG
$/$
3/CD
billion/CD
./.
Hani/NNP
Zayadi/NNP
was/VBD
appointed/VBN
president/NN
and/CC
chief/JJ
executive/NN
officer/NN
of/IN
this/DT
financially/RB
troubled/JJ
department/NN
store/NN
chain/NN
,/,
effective/JJ
Nov./NNP
15/CD
,/,
succeeding/VBG
Frank/NNP
Robertson/NNP
,/,
who/WP
is/VBZ
retiring/VBG
early/RB
./.
Mr./NNP
Zayadi/NNP
was/VBD
previously/RB
president/NN
and/CC
chief/JJ
operating/VBG
officer/NN
of/IN
Zellers/NNP
Inc./NNP
,/,
a/DT
retail/JJ
chain/NN
that/WDT
is/VBZ
owned/VBN
by/IN
Toronto-based/JJ
Hudson/NNP
's/POS
Bay/NNP
Co./NNP
,/,
Canada/NNP
's/POS
largest/JJS
department/NN
store/NN
operator/NN
./.
Tuesday/NNP
,/,
October/NNP
31/CD
,/,
1989/CD
The/DT
key/JJ
U.S./NNP
and/CC
foreign/JJ
annual/JJ
interest/NN
rates/NNS
below/RB
are/VBP
a/DT
guide/NN
to/TO
general/JJ
levels/NNS
but/CC
do/VBP
n't/RB
always/RB
represent/VB
actual/JJ
transactions/NNS
./.
PRIME/JJ
RATE/NN
:/:
10/CD
1\/2/CD
%/NN
./.
The/DT
base/JJ
rate/NN
on/IN
corporate/JJ
loans/NNS
at/IN
large/JJ
U.S./NNP
money/NN
center/NN
commercial/JJ
banks/NNS
./.
FEDERAL/JJ
FUNDS/NNS
:/:
9/CD
%/NN
high/JJ
,/,
8/CD
13\/16/CD
%/NN
low/JJ
,/,
8/CD
7\/8/CD
%/NN
near/IN
closing/NN
bid/NN
,/,
8/CD
15\/16/CD
%/NN
offered/VBN
./.
Reserves/NNS
traded/VBD
among/IN
commercial/JJ
banks/NNS
for/IN
overnight/JJ
use/NN
in/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
or/CC
more/JJR
./.
Source/NN
:/:
Fulton/NNP
Prebon/NNP
U.S.A/NNP
./.
Inc/NNP
./.
DISCOUNT/NN
RATE/NN
:/:
7/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
depository/NN
institutions/NNS
by/IN
the/DT
New/NNP
York/NNP
Federal/NNP
Reserve/NNP
Bank/NNP
./.
CALL/JJ
MONEY/NN
:/:
9/CD
3\/4/CD
%/NN
to/TO
10/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
brokers/NNS
on/IN
stock/NN
exchange/NN
collateral/NN
./.
COMMERCIAL/JJ
PAPER/NN
placed/VBN
directly/RB
by/IN
General/NNP
Motors/NNPS
Acceptance/NNP
Corp./NNP
:/:
8.55/CD
%/NN
30/CD
to/TO
44/CD
days/NNS
;/:
8.25/CD
%/NN
45/CD
to/TO
59/CD
days/NNS
;/:
8.40/CD
%/NN
60/CD
to/TO
89/CD
days/NNS
;/:
8/CD
%/NN
90/CD
to/TO
119/CD
days/NNS
;/:
7.90/CD
%/NN
120/CD
to/TO
149/CD
days/NNS
;/:
7.80/CD
%/NN
150/CD
to/TO
179/CD
days/NNS
;/:
7.55/CD
%/NN
180/CD
to/TO
270/CD
days/NNS
./.
COMMERCIAL/JJ
PAPER/NN
:/:
High-grade/JJ
unsecured/JJ
notes/NNS
sold/VBN
through/IN
dealers/NNS
by/IN
major/JJ
corporations/NNS
in/IN
multiples/NNS
of/IN
$/$
1,000/CD
:/:
8.62/CD
%/NN
30/CD
days/NNS
;/:
8.55/CD
%/NN
60/CD
days/NNS
;/:
8.45/CD
%/NN
90/CD
days/NNS
./.
CERTIFICATES/NNS
OF/IN
DEPOSIT/NN
:/:
8.09/CD
%/NN
one/CD
month/NN
;/:
8.04/CD
%/NN
two/CD
months/NNS
;/:
8.03/CD
%/NN
three/CD
months/NNS
;/:
7.96/CD
%/NN
six/CD
months/NNS
;/:
7.92/CD
%/NN
one/CD
year/NN
./.
Average/JJ
of/IN
top/JJ
rates/NNS
paid/VBN
by/IN
major/JJ
New/NNP
York/NNP
banks/NNS
on/IN
primary/JJ
new/JJ
issues/NNS
of/IN
negotiable/JJ
C.D.s/NNPS
,/,
usually/RB
on/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
and/CC
more/JJR
./.
The/DT
minimum/JJ
unit/NN
is/VBZ
$/$
100,000/CD
./.
Typical/JJ
rates/NNS
in/IN
the/DT
secondary/JJ
market/NN
:/:
8.53/CD
%/NN
one/CD
month/NN
;/:
8.50/CD
%/NN
three/CD
months/NNS
;/:
8.30/CD
%/NN
six/CD
months/NNS
./.
BANKERS/NNS
ACCEPTANCES/NNS
:/:
8.49/CD
%/NN
30/CD
days/NNS
;/:
8.44/CD
%/NN
60/CD
days/NNS
;/:
8.27/CD
%/NN
90/CD
days/NNS
;/:
8.12/CD
%/NN
120/CD
days/NNS
;/:
8.05/CD
%/NN
150/CD
days/NNS
;/:
7.98/CD
%/NN
180/CD
days/NNS
./.
Negotiable/JJ
,/,
bank-backed/JJ
business/NN
credit/NN
instruments/NNS
typically/RB
financing/VBG
an/DT
import/NN
order/NN
./.
LONDON/NNP
LATE/JJ
EURODOLLARS/NNS
:/:
8/CD
3\/4/CD
%/NN
to/TO
8/CD
5\/8/CD
%/NN
one/CD
month/NN
;/:
8/CD
3\/4/CD
%/NN
to/TO
8/CD
5\/8/CD
%/NN
two/CD
months/NNS
;/:
8/CD
11\/16/CD
%/NN
to/TO
8/CD
9\/16/CD
%/NN
three/CD
months/NNS
;/:
8/CD
9\/16/CD
%/NN
to/TO
8/CD
7\/16/CD
%/NN
four/CD
months/NNS
;/:
8/CD
1\/2/CD
%/NN
to/TO
8/CD
3\/8/CD
%/NN
five/CD
months/NNS
;/:
8/CD
7\/16/CD
%/NN
to/TO
8/CD
5\/16/CD
%/NN
six/CD
months/NNS
./.
LONDON/NNP
INTERBANK/NNP
OFFERED/NNP
RATES/NNPS
LIBOR/NNP
8/CD
3\/4/CD
%/NN
one/CD
month/NN
;/:
8/CD
11\/16/CD
%/NN
three/CD
months/NNS
;/:
8/CD
7\/16/CD
%/NN
six/CD
months/NNS
;/:
8/CD
7\/16/CD
%/NN
one/CD
year/NN
./.
The/DT
average/NN
of/IN
interbank/NN
offered/JJ
rates/NNS
for/IN
dollar/NN
deposits/NNS
in/IN
the/DT
London/NNP
market/NN
based/VBN
on/IN
quotations/NNS
at/IN
five/CD
major/JJ
banks/NNS
./.
FOREIGN/JJ
PRIME/JJ
RATES/NNS
:/:
Canada/NNP
13.50/CD
%/NN
;/:
Germany/NNP
9/CD
%/NN
;/:
Japan/NNP
4.875/CD
%/NN
;/:
Switzerland/NNP
8.50/CD
%/NN
;/:
Britain/NNP
15/CD
%/NN
./.
These/DT
rate/NN
indications/NNS
are/VBP
n't/RB
directly/RB
comparable/JJ
;/:
lending/JJ
practices/NNS
vary/VBP
widely/RB
by/IN
location/NN
./.
TREASURY/NN
BILLS/NNS
:/:
Results/NNS
of/IN
the/DT
Monday/NNP
,/,
October/NNP
30/CD
,/,
1989/CD
,/,
auction/NN
of/IN
short-term/JJ
U.S./NNP
government/NN
bills/NNS
,/,
sold/VBN
at/IN
a/DT
discount/NN
from/IN
face/JJ
value/NN
in/IN
units/NNS
of/IN
$/$
10,000/CD
to/TO
$/$
1/CD
million/CD
:/:
7.78/CD
%/NN
13/CD
weeks/NNS
;/:
7.62/CD
%/NN
26/CD
weeks/NNS
./.
FEDERAL/NNP
HOME/NNP
LOAN/NNP
MORTGAGE/NNP
CORP/NNP
./.
Freddie/NNP
Mac/NNP
yields/NNS
on/IN
30-year/JJ
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
./.
9.78/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
7.875/CD
%/NN
,/,
2/CD
%/NN
rate/NN
capped/VBD
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNPS
Inc/NNP
./.
FEDERAL/NNP
NATIONAL/NNP
MORTGAGE/NNP
ASSOCIATION/NNP
Fannie/NNP
Mae/NNP
yields/NNS
on/IN
30/CD
year/NN
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
par/JJ
9.75/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
8.75/CD
%/NN
,/,
6\/2/CD
rate/NN
capped/VBD
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNPS
Inc/NNP
./.
MERRILL/NNP
LYNCH/NNP
READY/NNP
ASSETS/NNPS
TRUST/NNP
:/:
8.63/CD
%/NN
./.
Annualized/VBN
average/JJ
rate/NN
of/IN
return/NN
after/IN
expenses/NNS
for/IN
the/DT
past/JJ
30/CD
days/NNS
;/:
not/RB
a/DT
forecast/NN
of/IN
future/JJ
returns/NNS
./.
Canada/NNP
's/POS
gross/JJ
domestic/JJ
product/NN
rose/VBD
an/DT
inflation-adjusted/JJ
0.3/CD
%/NN
in/IN
August/NNP
,/,
mainly/RB
as/IN
a/DT
result/NN
of/IN
service-industry/NN
growth/NN
,/,
Statistics/NNPS
Canada/NNP
,/,
a/DT
federal/JJ
agency/NN
,/,
said/VBD
./.
The/DT
August/NNP
GDP/NNP
was/VBD
up/RB
2.4/CD
%/NN
from/IN
its/PRP$
year-earlier/JJ
level/NN
./.
GDP/NNP
is/VBZ
the/DT
total/JJ
value/NN
of/IN
a/DT
nation/NN
's/POS
output/NN
of/IN
goods/NNS
and/CC
services/NNS
./.
Statistics/NNPS
Canada/NNP
said/VBD
service-industry/NN
output/NN
in/IN
August/NNP
rose/VBD
0.4/CD
%/NN
from/IN
July/NNP
./.
Output/NN
of/IN
goods-producing/JJ
industries/NNS
increased/VBD
0.1/CD
%/NN
./.
Separately/RB
,/,
Statistics/NNPS
Canada/NNP
reported/VBD
that/DT
its/PRP$
industrial-product/NN
price/NN
index/NN
dropped/VBD
0.2/CD
%/NN
in/IN
September/NNP
,/,
its/PRP$
third/JJ
consecutive/JJ
monthly/JJ
decline/NN
./.
It/PRP
also/RB
reported/VBD
a/DT
2.6/CD
%/NN
decline/NN
in/IN
its/PRP$
raw-materials/NNS
price/NN
index/NN
for/IN
September/NNP
./.
Columbia/NNP
Pictures/NNPS
Entertainment/NNP
Inc./NNP
was/VBD
dropped/VBN
,/,
effective/JJ
today/NN
,/,
from/IN
the/DT
recreational/JJ
products/NNS
and/CC
services/NNS
industry/NN
group/NN
of/IN
the/DT
Dow/NNP
Jones/NNP
Equity/NNP
Market/NNP
Index/NNP
./.
Columbia/NNP
Pictures/NNPS
is/VBZ
being/VBG
acquired/VBN
by/IN
Sony/NNP
Corp./NNP
,/,
which/WDT
is/VBZ
based/VBN
in/IN
Japan/NNP
./.
People/NNPS
's/POS
Savings/NNPS
Financial/NNP
Corp./NNP
said/VBD
it/PRP
will/MD
buy/VB
back/RB
as/RB
much/JJ
as/IN
10/CD
%/NN
of/IN
its/PRP$
2.4/CD
million/CD
shares/NNS
outstanding/JJ
because/IN
the/DT
stock/NN
is/VBZ
undervalued/VBN
./.
The/DT
holding/VBG
company/NN
said/VBD
it/PRP
has/VBZ
been/VBN
``/``
unfairly/RB
associated/VBN
''/''
with/IN
other/JJ
banks/NNS
in/IN
New/NNP
England/NNP
that/WDT
have/VBP
had/VBN
major/JJ
loan/NN
losses/NNS
in/IN
recent/JJ
quarters/NNS
./.
The/DT
company/NN
said/VBD
its/PRP$
People/NNPS
's/POS
Savings/NNPS
Bank/NNP
unit/NN
does/VBZ
n't/RB
have/VB
a/DT
``/``
large/JJ
exposure/NN
to/TO
construction/NN
and/CC
commercial/JJ
loans/NNS
that/WDT
have/VBP
caused/VBN
the/DT
loan-loss/JJ
problems/NNS
in/IN
many/JJ
of/IN
the/DT
banks/NNS
./.
''/''
A/DT
seat/NN
on/IN
the/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
was/VBD
sold/VBN
for/IN
$/$
410,000/CD
,/,
down/RB
$/$
6,000/CD
from/IN
the/DT
previous/JJ
sale/NN
Oct/NNP
./.
Seats/NNS
currently/RB
are/VBP
quoted/VBN
at/IN
$/$
400,000/CD
bid/NN
,/,
$/$
425,000/CD
asked/VBN
./.
The/DT
record/NN
price/NN
for/IN
a/DT
full/JJ
membership/NN
on/IN
the/DT
exchange/NN
is/VBZ
$/$
550,000/CD
,/,
set/VBN
March/NNP
9/CD
./.
In/IN
a/DT
surprise/NN
move/NN
,/,
the/DT
British/JJ
government/NN
cleared/VBD
the/DT
way/NN
for/IN
a/DT
bidding/JJ
war/NN
for/IN
Jaguar/NNP
PLC/NNP
by/IN
agreeing/VBG
to/TO
remove/VB
an/DT
obstacle/NN
to/TO
a/DT
takeover/NN
of/IN
the/DT
auto/NN
maker/NN
./.
Trade/NNP
and/CC
Industry/NNP
Secretary/NNP
Nicholas/NNP
Ridley/NNP
told/VBD
the/DT
House/NNP
of/IN
Commons/NNPS
yesterday/NN
that/IN
he/PRP
will/MD
relinquish/VB
the/DT
government/NN
's/POS
so-called/JJ
golden/JJ
share/NN
in/IN
the/DT
company/NN
as/RB
long/RB
as/IN
Jaguar/NNP
shareholders/NNS
agree/VBP
./.
The/DT
golden/JJ
share/NN
restricts/VBZ
any/DT
individual/JJ
holding/NN
to/TO
15/CD
%/NN
and/CC
expires/VBZ
at/IN
the/DT
end/NN
of/IN
1990/CD
./.
It/PRP
was/VBD
in/IN
Jaguar/NNP
's/POS
best/JJS
interests/NNS
``/``
for/IN
the/DT
company/NN
's/POS
future/NN
to/TO
be/VB
assured/VBN
and/CC
the/DT
present/JJ
climate/NN
of/IN
uncertainty/NN
resolved/VBN
as/RB
quickly/RB
as/IN
possible/JJ
,/,
''/''
Mr./NNP
Ridley/NNP
said/VBD
./.
Mr./NNP
Ridley/NNP
's/POS
decision/NN
fires/VBZ
the/DT
starting/JJ
pistol/NN
for/IN
perhaps/RB
a/DT
costly/JJ
contest/NN
between/IN
the/DT
world/NN
's/POS
auto/NN
giants/NNS
for/IN
Britain/NNP
's/POS
leading/JJ
luxury-car/NN
maker/NN
./.
Both/DT
General/NNP
Motors/NNPS
Corp./NNP
and/CC
Ford/NNP
Motor/NNP
Co./NNP
have/VBP
been/VBN
trying/VBG
to/TO
amass/VB
15/CD
%/JJ
stakes/NNS
in/IN
Jaguar/NNP
./.
Ford/NNP
,/,
which/WDT
already/RB
has/VBZ
an/DT
unwelcome/JJ
13.2/CD
%/NN
holding/NN
,/,
is/VBZ
prepared/JJ
to/TO
bid/VB
for/IN
the/DT
entire/JJ
company/NN
and/CC
had/VBD
lobbied/VBN
the/DT
government/NN
to/TO
lift/VB
the/DT
takeover/NN
restrictions/NNS
early/RB
./.
GM/NNP
has/VBZ
been/VBN
negotiating/VBG
a/DT
friendly/JJ
transaction/NN
with/IN
Jaguar/NNP
that/WDT
likely/RB
would/MD
involve/VB
joint/JJ
ventures/NNS
and/CC
an/DT
eventual/JJ
stake/NN
of/IN
just/RB
under/IN
30/CD
%/NN
./.
But/CC
the/DT
government/NN
's/POS
action/NN
,/,
which/WDT
caught/VBD
Jaguar/NNP
management/NN
flat-footed/RB
,/,
may/MD
scuttle/VB
the/DT
GM/NNP
minority/NN
deal/NN
by/IN
forcing/VBG
it/PRP
to/TO
fight/VB
for/IN
all/DT
of/IN
Jaguar/NNP
./.
``/``
I/PRP
ca/MD
n't/RB
believe/VB
they/PRP
GM/NNP
Ford/NNP
have/VB
a/DT
free/JJ
run/NN
,/,
''/''
said/VBD
Stephen/NNP
Reitman/NNP
,/,
a/DT
European/JJ
auto/NN
industry/NN
analyst/NN
at/IN
UBS-Phillips/NNP
&/CC
Drew/NNP
./.
``/``
I/PRP
am/VBP
sure/JJ
they/PRP
will/MD
be/VB
going/VBG
for/IN
a/DT
full/JJ
bid/NN
./.
''/''
Many/JJ
investors/NNS
certainly/RB
believe/VBP
a/DT
bidding/JJ
war/NN
is/VBZ
imminent/JJ
./.
Jaguar/NNP
shares/NNS
skyrocketed/VBD
yesterday/NN
after/IN
Mr./NNP
Ridley/NNP
's/POS
announcement/NN
,/,
following/VBG
their/PRP$
temporary/JJ
suspension/NN
on/IN
London/NNP
's/POS
Stock/NNP
Exchange/NNP
./.
In/IN
late/JJ
trading/NN
,/,
the/DT
shares/NNS
were/VBD
up/RB
a/DT
whopping/JJ
122/CD
pence/NN
$/$
1.93/CD
a/DT
16.3/CD
%/NN
gain/NN
--/:
to/TO
a/DT
record/NN
869/CD
pence/NN
on/IN
very/RB
heavy/JJ
volume/NN
of/IN
9.7/CD
million/CD
shares/NNS
./.
In/IN
the/DT
U.S./NNP
over-the-counter/JJ
market/NN
,/,
Jaguar/NNP
shares/NNS
trading/VBG
as/IN
American/NNP
Depositary/NNP
Receipts/NNPS
closed/VBD
at/IN
$/$
13.625/CD
,/,
up/RB
$/$
1.75/CD
./.
Analysts/NNS
expect/VBP
Ford/NNP
will/MD
make/VB
the/DT
first/JJ
move/NN
,/,
perhaps/RB
today/NN
,/,
with/IN
an/DT
initial/JJ
offer/NN
of/IN
about/IN
900/CD
pence/NN
$/$
14.25/CD
a/DT
share/NN
./.
Such/JJ
a/DT
proposal/NN
values/VBZ
Jaguar/NNP
at/IN
more/JJR
than/IN
#/#
1.6/CD
billion/CD
$/$
2.53/CD
billion/CD
Speculation/NN
about/IN
a/DT
takeover/NN
fight/NN
has/VBZ
sent/VBN
Jaguar/NNP
shares/NNS
soaring/VBG
in/IN
the/DT
past/JJ
six/CD
weeks/NNS
./.
The/DT
share/NN
price/NN
was/VBD
languishing/VBG
at/IN
about/IN
400/CD
pence/NN
before/IN
Ford/NNP
's/POS
Sept./NNP
19/CD
announcement/NN
of/IN
its/PRP$
interest/NN
in/IN
a/DT
minority/NN
stake/NN
./.
Ford/NNP
is/VBZ
``/``
in/IN
the/DT
driving/JJ
seat/NN
at/IN
the/DT
moment/NN
,/,
''/''
observed/VBD
Bob/NNP
Barber/NNP
,/,
an/DT
auto/NN
analyst/NN
at/IN
brokers/NNS
James/NNP
Capel/NNP
&/CC
Co/NNP
./.
An/DT
aggressive/JJ
Ford/NNP
bid/NN
for/IN
Jaguar/NNP
would/MD
put/VB
pressure/NN
on/IN
GM/NNP
to/TO
make/VB
a/DT
better/JJR
offer/NN
as/IN
the/DT
British/JJ
company/NN
's/POS
``/``
white/JJ
knight/NN
./.
''/''
Such/JJ
a/DT
countermove/NN
could/MD
end/VB
Jaguar/NNP
's/POS
hopes/NNS
for/IN
remaining/VBG
independent/JJ
and/CC
British-owned/JJ
./.
But/CC
it/PRP
is/VBZ
n't/RB
clear/JJ
how/WRB
long/JJ
GM/NNP
would/MD
be/VB
willing/JJ
to/TO
fight/VB
Ford/NNP
for/IN
Jaguar/NNP
./.
Because/IN
of/IN
their/PRP$
longstanding/JJ
rivalry/NN
,/,
GM/NNP
just/RB
``/``
wants/VBZ
to/TO
make/VB
sure/JJ
Ford/NNP
pays/VBZ
a/DT
huge/JJ
packet/NN
for/IN
(/(
Jaguar/NNP
John/NNP
Lawson/NNP
,/,
an/DT
auto/NN
analyst/NN
at/IN
London/NNP
's/POS
Nomura/NNP
Research/NNP
Institute/NNP
./.
People/NNS
close/RB
to/TO
the/DT
GM-Jaguar/JJ
talks/NNS
agreed/VBD
that/IN
Ford/NNP
now/RB
may/MD
be/VB
able/JJ
to/TO
shut/VB
out/RP
General/NNP
Motors/NNPS
./.
``/``
It/PRP
's/VBZ
either/CC
going/VBG
to/TO
be/VB
a/DT
shootout/NN
,/,
or/CC
there/EX
only/RB
may/MD
be/VB
one/CD
player/NN
in/IN
town/NN
,/,
''/''
one/CD
person/NN
said/VBD
./.
Another/DT
person/NN
close/JJ
to/TO
the/DT
talks/NNS
said/VBD
,/,
``/``
It/PRP
is/VBZ
very/RB
hard/JJ
to/TO
justify/VB
paying/VBG
a/DT
silly/JJ
price/NN
for/IN
Jaguar/NNP
if/IN
an/DT
out-and-out/JJ
bidding/JJ
war/NN
were/VBD
to/TO
start/VB
now/RB
./.
''/''
In/IN
a/DT
statement/NN
,/,
Jaguar/NNP
's/POS
board/NN
said/VBD
they/PRP
``/``
were/VBD
not/RB
consulted/VBN
about/IN
the/DT
Ridley/NNP
decision/NN
advance/NN
and/CC
were/VBD
surprised/VBN
at/IN
the/DT
action/NN
taken/VBN
./.
''/''
The/DT
statement/NN
emphasized/VBD
that/IN
holders/NNS
representing/VBG
75/CD
%/NN
of/IN
the/DT
shares/NNS
voting/VBG
at/IN
a/DT
special/JJ
shareholders/NNS
'/POS
meeting/NN
must/MD
agree/VB
to/TO
lift/VB
the/DT
takeover/NN
restrictions/NNS
./.
Jaguar/NNP
officials/NNS
in/IN
the/DT
U.S./NNP
noted/VBD
that/IN
Ford/NNP
,/,
as/IN
Jaguar/NNP
's/POS
largest/JJS
shareholder/NN
,/,
now/RB
has/VBZ
the/DT
power/NN
to/TO
call/VB
for/IN
such/JJ
a/DT
meeting/NN
./.
U.S./NNP
auto/NN
analysts/NNS
also/RB
noted/VBD
that/IN
Ford/NNP
is/VBZ
in/IN
the/DT
best/JJS
position/NN
to/TO
benefit/VB
from/IN
the/DT
large/JJ
number/NN
of/IN
Jaguar/NNP
shares/NNS
that/WDT
have/VBP
moved/VBN
over/IN
the/DT
past/JJ
month/NN
into/IN
the/DT
hands/NNS
of/IN
arbitragers/NNS
waiting/VBG
for/IN
the/DT
highest/JJS
takeover/NN
bid/NN
./.
Jaguar/NNP
's/POS
own/JJ
defenses/NNS
against/IN
a/DT
hostile/JJ
bid/NN
are/VBP
weakened/VBN
,/,
analysts/NNS
add/VBP
,/,
because/IN
fewer/JJR
than/IN
3/CD
%/NN
of/IN
its/PRP$
shares/NNS
are/VBP
owned/VBN
by/IN
employees/NNS
and/CC
management/NN
./.
Ford/NNP
officials/NNS
in/IN
the/DT
U.S./NNP
declined/VBD
to/TO
comment/VB
on/IN
the/DT
British/JJ
government/NN
's/POS
action/NN
or/CC
on/IN
any/DT
plans/NNS
to/TO
call/VB
a/DT
special/JJ
Jaguar/NNP
shareholders/NNS
meeting/NN
./.
But/CC
GM/NNP
officials/NNS
said/VBD
they/PRP
,/,
too/RB
,/,
were/VBD
surprised/VBN
by/IN
the/DT
move/NN
,/,
which/WDT
left/VBD
them/PRP
to/TO
``/``
consider/VB
all/DT
our/PRP$
options/NNS
and/CC
explore/VB
matters/NNS
further/RBR
./.
''/''
Although/IN
GM/NNP
has/VBZ
U.S./NNP
approval/NN
to/TO
buy/VB
up/IN
to/TO
15/CD
%/NN
of/IN
Jaguar/NNP
's/POS
stock/NN
,/,
it/PRP
has/VBZ
n't/RB
yet/RB
disclosed/VBN
how/WRB
many/JJ
shares/NNS
it/PRP
now/RB
owns/VBZ
./.
In/IN
a/DT
prepared/JJ
statement/NN
,/,
GM/NNP
suggested/VBD
its/PRP$
plans/NNS
for/IN
Jaguar/NNP
would/MD
be/VB
more/RBR
valuable/JJ
in/IN
the/DT
long/JJ
run/NN
than/IN
the/DT
initial/JJ
windfalls/NNS
investors/NNS
might/MD
reap/VB
from/IN
a/DT
hostile/JJ
Ford/NNP
bid/NN
./.
``/``
Our/PRP$
intensive/JJ
discussions/NNS
with/IN
Jaguar/NNP
,/,
at/IN
their/PRP$
invitation/NN
,/,
''/''
GM/NNP
said/VBD
,/,
``/``
have/VBP
as/RB
their/PRP$
objectives/NNS
to/TO
create/VB
a/DT
cooperative/JJ
business/NN
relationship/NN
with/IN
Jaguar/NNP
that/WDT
would/MD
provide/VB
for/IN
the/DT
continued/JJ
independence/NN
of/IN
this/DT
great/JJ
British/JJ
car/NN
company/NN
,/,
to/TO
ensure/VB
a/DT
secure/JJ
future/NN
for/IN
its/PRP$
employees/NNS
and/CC
to/TO
provide/VB
an/DT
attractive/JJ
long-term/JJ
return/NN
for/IN
its/PRP$
shareholders/NNS
./.
''/''
Jaguar/NNP
was/VBD
shocked/VBN
by/IN
Mr./NNP
Ridley/NNP
's/POS
decision/NN
,/,
because/IN
management/NN
had/VBD
believed/VBN
the/DT
government/NN
would/MD
n't/RB
lift/VB
the/DT
golden/JJ
share/NN
without/IN
consulting/VBG
the/DT
company/NN
first/RB
./.
Indeed/RB
,/,
the/DT
government/NN
is/VBZ
taking/VBG
a/DT
calculated/JJ
risk/NN
./.
Mr./NNP
Ridley/NNP
's/POS
announcement/NN
set/VBN
off/RP
a/DT
howl/NN
of/IN
protests/NNS
from/IN
members/NNS
of/IN
the/DT
opposition/NN
Labor/NNP
Party/NNP
,/,
who/WP
accused/VBD
the/DT
Thatcher/NNP
administration/NN
of/IN
backing/VBG
down/RB
on/IN
promised/JJ
protection/NN
for/IN
a/DT
privatized/JJ
company/NN
./.
The/DT
British/JJ
government/NN
retained/VBD
the/DT
single/JJ
golden/JJ
share/NN
after/IN
selling/VBG
its/PRP$
stake/NN
in/IN
Jaguar/NNP
in/IN
The/DT
Conservative/JJ
government/NN
's/POS
decision/NN
may/MD
reflect/VB
its/PRP$
desire/NN
to/TO
shed/VB
a/DT
politically/RB
sensitive/JJ
issue/NN
well/RB
before/IN
the/DT
next/JJ
election/NN
,/,
expected/VBN
in/IN
late/JJ
1991/CD
./.
``/``
It/PRP
's/VBZ
now/RB
a/DT
very/RB
good/JJ
time/NN
politically/RB
to/TO
get/VB
this/DT
over/RB
and/CC
done/RB
with/IN
,/,
''/''
observed/VBD
Daniel/NNP
Jones/NNP
,/,
professor/NN
of/IN
motor/NN
industry/NN
management/NN
at/IN
the/DT
University/NNP
of/IN
Cardiff/NNP
in/IN
Wales/NNP
./.
The/DT
government/NN
,/,
already/RB
buffeted/VBN
by/IN
high/JJ
interest/NN
rates/NNS
and/CC
a/DT
slowing/VBG
economy/NN
,/,
has/VBZ
been/VBN
badly/RB
hurt/VBN
by/IN
last/JJ
week/NN
's/POS
shake-up/NN
in/IN
Mrs./NNP
Thatcher/NNP
's/POS
cabinet/NN
./.
At/IN
the/DT
same/JJ
time/NN
,/,
the/DT
government/NN
did/VBD
n't/RB
want/VB
to/TO
appear/VB
to/TO
favor/VB
GM/NNP
by/IN
allowing/VBG
a/DT
minority/NN
stake/NN
that/WDT
might/MD
preclude/VB
a/DT
full/JJ
bid/NN
by/IN
Ford/NNP
./.
Mr./NNP
Ridley/NNP
hinted/VBD
at/IN
this/DT
motive/NN
in/IN
answering/VBG
questions/NNS
from/IN
members/NNS
of/IN
Parliament/NNP
after/IN
his/PRP$
announcement/NN
./.
He/PRP
said/VBD
he/PRP
was/VBD
giving/VBG
up/RP
the/DT
golden/JJ
share/NN
``/``
to/TO
clear/VB
the/DT
way/NN
so/IN
the/DT
playing/NN
field/NN
is/VBZ
level/JJ
between/IN
all/DT
contestants/NNS
./.
''/''
Bradley/NNP
A./NN
Stertz/NNP
in/IN
Detroit/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Dow/NNP
Chemical/NNP
Co./NNP
,/,
Midland/NNP
,/,
Mich./NNP
,/,
and/CC
Eli/NNP
Lilly/NNP
&/CC
Co./NNP
,/,
Indianapolis/NNP
,/,
said/VBD
they/PRP
completed/VBD
the/DT
formation/NN
of/IN
Dow/NNP
Elanco/NNP
,/,
a/DT
joint/JJ
venture/NN
combining/VBG
their/PRP$
plant-sciences/JJ
businesses/NNS
as/RB
well/RB
as/IN
Dow/NNP
's/POS
industrial/JJ
pest-control/JJ
business/NN
./.
The/DT
companies/NNS
said/VBD
Dow/NNP
Elanco/NNP
will/MD
be/VB
the/DT
largest/JJS
research-based/JJ
agricultural/JJ
concern/NN
in/IN
North/NNP
America/NNP
,/,
with/IN
projected/VBN
first-year/JJ
revenue/NN
of/IN
$/$
1.5/CD
billion/CD
./.
Dow/NNP
will/MD
own/VB
60/CD
%/NN
of/IN
the/DT
venture/NN
,/,
with/IN
Eli/NNP
Lilly/NNP
holding/VBG
the/DT
rest/NN
./.
The/DT
venture/NN
will/MD
be/VB
based/VBN
in/IN
Indianapolis/NNP
./.
William/NNP
A./NN
Wise/NNP
,/,
44/CD
years/NNS
old/JJ
,/,
president/NN
of/IN
the/DT
El/NNP
Paso/NNP
Natural/NNP
Gas/NNP
Co./NNP
unit/NN
of/IN
this/DT
energy/NN
and/CC
natural-resources/NNS
concern/NN
,/,
was/VBD
named/VBN
to/TO
the/DT
additional/JJ
post/NN
of/IN
chief/JJ
executive/NN
officer/NN
,/,
succeeding/VBG
Travis/NNP
H./NNP
Petty/NNP
,/,
61/CD
,/,
who/WP
continues/VBZ
as/IN
a/DT
vice/NN
chairman/NN
of/IN
the/DT
parent/NN
./.
Erwin/NNP
Tomash/NNP
,/,
the/DT
67-year-old/JJ
founder/NN
of/IN
this/DT
maker/NN
of/IN
data/NNS|NN
communications/NNS
products/NNS
and/CC
a/DT
former/JJ
chairman/NN
and/CC
chief/JJ
executive/NN
,/,
resigned/VBD
as/IN
a/DT
director/NN
./.
Dataproducts/NNPS
is/VBZ
fighting/VBG
a/DT
hostile/JJ
tender/NN
offer/NN
by/IN
DPC/NNP
Acquisition/NNP
Partners/NNPS
,/,
a/DT
group/NN
led/VBN
by/IN
New/NNP
York-based/JJ
Crescott/NNP
Investments/NNPS
Associates/NNPS
./.
Under/IN
the/DT
circumstances/NNS
,/,
Dataproducts/NNPS
said/VBD
,/,
Mr./NNP
Tomash/NNP
said/VBD
he/PRP
was/VBD
unable/JJ
to/TO
devote/VB
the/DT
time/NN
required/JJ
because/RB
of/IN
other/JJ
commitments/NNS
./.
Mr./NNP
Tomash/NNP
will/MD
remain/VB
as/IN
a/DT
director/NN
emeritus/NN
./.
The/DT
company/NN
had/VBD
no/DT
comment/NN
on/IN
whether/IN
a/DT
replacement/NN
would/MD
be/VB
named/VBN
./.
Robert/NNP
Q./NNP
Marston/NNP
,/,
president/NN
emeritus/NN
,/,
University/NNP
of/IN
Florida/NNP
,/,
and/CC
a/DT
director/NN
of/IN
this/DT
maker/NN
of/IN
medical/JJ
devices/NNS
,/,
was/VBD
named/VBN
chairman/NN
./.
Dr./NNP
Marston/NNP
,/,
66/CD
years/NNS
old/JJ
,/,
succeeds/VBZ
Alexander/NNP
T./NNP
Daignault/NNP
,/,
72/CD
,/,
who/WP
did/VBD
n't/RB
stand/VB
for/IN
re-election/NN
due/JJ
to/TO
mandatory/JJ
board/NN
retirement/NN
policy/NN
./.
SFE/NNP
Technologies/NNPS
said/VBD
William/NNP
P./NNP
Kuehn/NNP
was/VBD
elected/VBN
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
this/DT
troubled/JJ
electronics/NN
parts/NNS
maker/NN
./.
The/DT
45-year-old/JJ
Mr./NNP
Kuehn/NNP
,/,
who/WP
has/VBZ
a/DT
background/NN
in/IN
crisis/NN
management/NN
,/,
succeeds/VBZ
Alan/NNP
D./NNP
Rubendall/NNP
,/,
45/CD
./.
Jerome/NNP
J./NNP
Jahn/NNP
,/,
executive/NN
vice/NN
president/NN
and/CC
chief/JJ
financial/JJ
officer/NN
,/,
said/VBD
Mr./NNP
Rubendall/NNP
was/VBD
resigning/VBG
by/IN
``/``
mutual/JJ
agreement/NN
''/''
with/IN
the/DT
board/NN
./.
``/``
He/PRP
is/VBZ
going/VBG
to/TO
pursue/VB
other/JJ
interests/NNS
,/,
''/''
Mr./NNP
Jahn/NNP
said/VBD
./.
Mr./NNP
Rubendall/NNP
could/MD
n't/RB
be/VB
reached/VBN
./.
Mr./NNP
Kuehn/NNP
,/,
the/DT
company/NN
said/VBD
,/,
will/MD
retain/VB
the/DT
rest/NN
of/IN
the/DT
current/JJ
management/NN
team/NN
./.
For/IN
the/DT
nine/CD
months/NNS
ended/VBN
July/NNP
29/CD
,/,
SFE/NNP
Technologies/NNPS
reported/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
889,000/CD
on/IN
sales/NNS
of/IN
$/$
23.4/CD
million/CD
./.
That/IN
compared/VBN
with/IN
an/DT
operating/NN
loss/NN
of/IN
$/$
1.9/CD
million/CD
on/IN
sales/NNS
of/IN
$/$
27.4/CD
million/CD
in/IN
the/DT
year-earlier/JJ
period/NN
./.
In/IN
national/JJ
over-the-counter/JJ
trading/NN
,/,
SFE/NNP
Technologies/NNPS
shares/NNS
closed/VBD
yesterday/NN
at/IN
31.25/CD
cents/NNS
a/DT
share/NN
,/,
up/RB
6.25/CD
cents/NNS
./.
Sales/NNS
of/IN
new/JJ
cars/NNS
in/IN
Europe/NNP
fell/VBD
4.2/CD
%/NN
in/IN
September/NNP
from/IN
a/DT
year/NN
earlier/RB
and/CC
analysts/NNS
say/VBP
the/DT
market/NN
could/MD
continue/VB
to/TO
soften/VB
in/IN
the/DT
months/NNS
ahead/RB
./.
After/IN
a/DT
stronger-than-expected/JJ
pace/NN
early/RB
this/DT
year/NN
,/,
analysts/NNS
say/VBP
the/DT
market/NN
,/,
after/IN
a/DT
series/NN
of/IN
sharp/JJ
swings/NNS
in/IN
recent/JJ
months/NNS
,/,
now/RB
shows/VBZ
signs/NNS
of/IN
retreating/VBG
./.
Statistics/NNS
from/IN
12/CD
countries/NNS
which/WDT
normally/RB
account/VBP
for/IN
94/CD
%/NN
of/IN
non-communist/JJ
Europe/NNP
's/POS
passenger/NN
car/NN
sales/NNS
showed/VBD
new/JJ
car/NN
registrations/NNS
totaled/VBD
911,606/CD
in/IN
September/NNP
,/,
down/RB
21/CD
%/NN
from/IN
August/NNP
and/CC
down/RB
4.2/CD
%/NN
for/IN
the/DT
year/NN
to/TO
date/NN
./.
Tokyo/NNP
stocks/NNS
rebounded/VBD
Tuesday/NNP
from/IN
two/CD
consecutive/JJ
daily/JJ
losses/NNS
in/IN
relatively/RB
active/JJ
dealings/NNS
./.
London/NNP
shares/NNS
also/RB
rose/VBD
,/,
while/IN
trading/NN
in/IN
Frankfurt/NNP
,/,
West/NNP
Germany/NNP
,/,
ended/VBD
higher/RBR
./.
In/IN
Tokyo/NNP
,/,
the/DT
Nikkei/NNP
index/NN
of/IN
225/CD
selected/VBN
issues/NNS
was/VBD
up/RB
132.00/CD
points/NNS
to/TO
35549.44/CD
./.
The/DT
index/NN
fell/VBD
109.85/CD
Monday/NNP
./.
Volume/NN
on/IN
the/DT
First/JJ
Section/NN
was/VBD
estimated/VBN
at/IN
900/CD
million/CD
shares/NNS
,/,
up/RB
from/IN
582/CD
million/CD
shares/NNS
Monday/NNP
./.
Advancing/VBG
issues/NNS
outnumbered/VBD
decliners/NNS
542/CD
to/TO
362/CD
,/,
while/IN
208/CD
issues/NNS
were/VBD
unchanged/JJ
./.
Small-lot/JJ
buying/NN
targeted/VBN
at/IN
incentive-backed/JJ
issues/NNS
pushed/VBN
up/RP
the/DT
Nikkei/NNP
./.
But/CC
other/JJ
sectors/NNS
failed/VBD
to/TO
attract/VB
investor/NN
interest/NN
and/CC
remained/VBD
sluggish/JJ
,/,
making/VBG
overall/JJ
trading/NN
appear/VB
mixed/JJ
./.
Individuals/NNS
and/CC
corporations/NNS
,/,
as/RB
well/RB
as/IN
dealers/NNS
trading/VBG
for/IN
their/PRP$
own/JJ
account/NN
,/,
actively/RB
bought/VBD
Tuesday/NNP
./.
An/DT
official/NN
at/IN
Wako/NNP
Securities/NNPS
said/VBD
these/DT
investors/NNS
feel/VBP
the/DT
need/NN
to/TO
make/VB
quick/JJ
profits/NNS
,/,
despite/IN
destabilizing/JJ
external/JJ
factors/NNS
,/,
such/JJ
as/IN
political/JJ
uncertainty/NN
tied/VBN
to/TO
the/DT
ruling/VBG
party/NN
's/POS
fate/NN
at/IN
next/JJ
year/NN
's/POS
Lower/NNP
House/NNP
elections/NNS
-/:
an/DT

event/NN
which/WDT
could/MD
directly/RB
affect/VB
the/DT
stock/NN
market/NN
./.
The/DT
Tokyo/NNP
Stock/NNP
Price/NNP
Index/NNP
of/IN
all/DT
issues/NNS
listed/VBN
in/IN
the/DT
First/JJ
Section/NN
,/,
which/WDT
declined/VBD
5.16/CD
on/IN
Monday/NNP
,/,
was/VBD
up/RB
16.05/CD
,/,
or/CC
0.60/CD
%/NN
,/,
at/IN
2692.65/CD
on/IN
Tuesday/NNP
./.
The/DT
Second/JJ
Section/NN
index/NN
,/,
which/WDT
fell/VBD
21.44/CD
points/NNS
Monday/NNP
,/,
was/VBD
up/RB
6.84/CD

points/NNS
,/,
or/CC
0.19/CD
%/NN
,/,
to/TO
close/VB
at/IN
3642.90/CD
./.
Second/JJ
Section/NN
volume/NN
was/VBD
estimated/VBN
at/IN
14/CD
million/CD
shares/NNS
,/,
unchanged/JJ
from/IN
Monday/NNP
./.
Institutional/JJ
investors/NNS
mostly/RB
remained/VBD
on/IN
the/DT
sidelines/NNS
Tuesday/NNP
./.
A/DT
fund/NN
manager/NN
at/IN
a/DT
life-insurance/NN
company/NN
said/VBD
three/CD
factors/NNS
make/VBP
it/PRP
difficult/JJ
to/TO
read/VB
market/NN
direction/NN
./.
First/LS
,/,
he/PRP
said/VBD
,/,
domestic/JJ
interest/NN
rates/NNS
are/VBP
likely/JJ
to/TO
stay/VB
at/IN
higher/JJR
levels/NNS
as/IN
increased/JJ
anticipation/NN
of/IN
inflation/NN
followed/VBD
rising/VBG
consumer/NN
prices/NNS
reported/VBN
last/JJ
week/NN
./.
Second/LS
,/,
the/DT
dollar/NN
is/VBZ
showing/VBG
persistent/JJ
strength/NN
despite/IN
a/DT
slowdown/NN
in/IN
the/DT
U.S./NNP
economy/NN
shown/VBN
by/IN
economic/JJ
indicators/NNS
./.
Third/LS
,/,
oil/NN
prices/NNS
have/VBP
n't/RB
declined/VBN
although/IN
supply/NN
has/VBZ
been/VBN
increasing/VBG
./.
The/DT
topic/NN
that/WDT
attracted/VBD
participants/NNS
'/POS
attention/NN
was/VBD
Mitsubishi/NNP
Estate/NNP
's/POS
purchase/NN
of/IN
51/CD
%/NN
of/IN
Rockefeller/NNP
Center/NNP
Properties/NNPS
,/,
announced/VBD
late/JJ
Monday/NNP
in/IN
New/NNP
York/NNP
./.
Mitsubishi/NNP
Estate/NNP
ended/VBD
the/DT
day/NN
at/IN
2680/CD
,/,
up/RB
150/CD
./.
The/DT
gains/NNS
also/RB
sparked/VBD
buying/NN
interest/NN
in/IN
other/JJ
real-estate/NN
companies/NNS
,/,
traders/NNS
said/VBD
./.
Sumitomo/NNP
Realty/NNP
&/CC
Development/NNP
rose/VBD
40/CD
to/TO
2170/CD
./.
Heiwa/NNP
Real/NNP
Estate/NNP
gained/VBD
40/CD
to/TO
2210/CD
./.
Investor/NN
focus/NN
shifted/VBD
quickly/RB
,/,
traders/NNS
said/VBD
./.
Many/JJ
of/IN
the/DT
morning-session/NN
winners/NNS
turned/VBD
out/RB
to/TO
be/VB
losers/NNS
by/IN
afternoon/NN
./.
In/IN
other/JJ
stock-market/NN
news/NN
,/,
the/DT
Tokyo/NNP
Stock/NNP
Exchange/NNP
said/VBD
that/IN
for/IN
the/DT
week/NN
ended/VBN
Friday/NNP
,/,
the/DT
balance/NN
of/IN
margin/JJ
buying/NN
rose/VBD
189.8/CD
billion/CD
yen/NNS
$/$
1.34/CD
billion/CD
7.160/CD
trillion/CD
yen/NNS
$/$
50.46/CD
billion/CD
The/DT
balance/NN
of/IN
short/JJ
positions/NNS
outstanding/JJ
fell/VBD
159.7/CD
billion/CD
yen/NNS
,/,
to/TO
779.8/CD
billion/CD
yen/NNS
./.
In/IN
London/NNP
,/,
prices/NNS
finished/VBD
at/IN
intraday/JJ
peaks/NNS
,/,
comforted/VBN
by/IN
a/DT
reassuring/JJ
early/JJ
performance/NN
on/IN
Wall/NNP
Street/NNP
and/CC
news/NN
that/IN
the/DT
British/JJ
government/NN
will/MD
waive/VB
its/PRP$
``/``
golden/JJ
share/NN
''/''
in/IN
auto/NN
maker/NN
Jaguar/NNP
./.
But/CC
trading/NN
was/VBD
very/RB
sketchy/JJ
,/,
as/IN
investment/NN
decision/NN
makers/NNS
remain/VBP
wary/JJ
from/IN
gyrations/NNS
and/CC
upsets/NNS
of/IN
recent/JJ
weeks/NNS
./.
``/``
Volume/NN
has/VBZ
been/VBN
appalling/JJ
,/,
''/''
said/VBD
a/DT
dealer/NN
at/IN
a/DT
British/JJ
brokerage/NN
concern/NN
./.
``/``
The/DT
market/NN
was/VBD
dragged/VBN
up/RB
by/IN
the/DT
scruff/NN
of/IN
its/PRP$
neck/NN
by/IN
Wall/NNP
Street/NNP
and/CC
by/IN
market/NN
makers/NNS
getting/VBG
caught/VBN
short/JJ
./.
No/DT
one/NN
wants/VBZ
stock/NN
on/IN
their/PRP$
books/NNS
./.
''/''
Meanwhile/RB
,/,
the/DT
broad-based/JJ
Financial/NNP
Times/NNP
100-share/JJ
index/NN
added/VBD
30.4/CD
points/NNS
to/TO
end/VB
at/IN
2142.6/CD
,/,
while/IN
reaching/VBG
its/PRP$
minimum/NN
of/IN
2120.5/CD
a/DT
half/JJ
hour/NN
into/IN
the/DT
session/NN
./.
At/IN
the/DT
close/NN
,/,
the/DT
narrower/JJR
30-share/JJ
index/NN
was/VBD
up/RB
19.7/CD
points/NNS
to/TO
1721.4/CD
./.
Volume/NN
totaled/VBD
a/DT
modest/JJ
334.5/CD
million/CD
shares/NNS
,/,
up/RB
from/IN
257.8/CD
million/CD
shares/NNS
Monday/NNP
./.
The/DT
market/NN
also/RB
moved/VBD
at/IN
early/JJ
afternoon/NN
on/IN
news/NN
that/IN
Jaguar/NNP
shares/NNS
were/VBD
being/VBG
temporarily/RB
suspended/VBN
at/IN
746/CD
pence/NN
$/$
11.80/CD
each/DT
./.
Secretary/NNP
of/IN
State/NNP
for/IN
Trade/NNP
and/CC
Industry/NNP
Nicholas/NNP
Ridley/NNP
said/VBD
later/RBR
in/IN
the/DT
day/NN
that/IN
the/DT
government/NN
would/MD
abolish/VB
its/PRP$
golden/JJ
share/NN
in/IN
Jaguar/NNP
,/,
the/DT
luxury/NN
auto/NN
maker/NN
being/VBG
stalked/VBN
by/IN
General/NNP
Motors/NNPS
and/CC
Ford/NNP
Motor/NNP
./.
The/DT
golden/JJ
share/NN
dates/NNS
from/IN
Jaguar/NNP
's/POS
public/JJ
offering/NN
in/IN
1984/CD
and/CC
was/VBD
designed/VBN
to/TO
protect/VB
the/DT
company/NN
from/IN
takeover/NN
./.
The/DT
golden/JJ
share/NN
was/VBD
scheduled/VBN
to/TO
expire/VB
at/IN
the/DT
beginning/NN
of/IN
But/CC
although/IN
the/DT
golden/JJ
share/NN
has/VBZ
been/VBN
waived/VBN
,/,
a/DT
hostile/JJ
bidder/NN
for/IN
Jaguar/NNP
would/MD
still/RB
have/VB
to/TO
alter/VB
the/DT
British/JJ
concern/NN
's/POS
articles/NNS
of/IN
association/NN
which/WDT
ban/VBP
shareholdings/NNS
of/IN
more/JJR
than/IN
15/CD
%/NN
./.
Jaguar/NNP
shares/NNS
closed/VBD
at/IN
869/CD
pence/NN
,/,
up/RB
122/CD
pence/NN
,/,
on/IN
hefty/JJ
turnover/NN
of/IN
9.7/CD
million/CD
shares/NNS
./.
As/IN
the/DT
London/NNP
trading/NN
session/NN
drew/VBD
to/TO
a/DT
close/NN
,/,
the/DT
market/NN
was/VBD
still/RB
listening/VBG
to/TO
the/DT
parliamentary/JJ
debate/NN
on/IN
the/DT
economy/NN
,/,
with/IN
new/JJ
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
John/NNP
Major/NNP
expected/VBN
to/TO
clarify/VB
his/PRP$
approach/NN
to/TO
the/DT
British/JJ
economy/NN
and/CC
currency/NN
issues/NNS
./.
On/IN
the/DT
Frankfurt/NNP
Stock/NNP
Exchange/NNP
,/,
share/NN
prices/NNS
closed/VBD
higher/JJR
in/IN
fairly/RB
thin/JJ
trading/NN
,/,
as/IN
selective/JJ
buying/NN
by/IN
foreigners/NNS
helped/VBD
propel/VB
prices/NNS
./.
The/DT
DAX/NNP
index/NN
closed/VBD
at/IN
1472.76/CD
,/,
up/RB
from/IN
1466.29/CD
./.
Despite/IN
the/DT
modest/JJ
gains/NNS
,/,
traders/NNS
said/VBD
the/DT
market/NN
remains/VBZ
dull/JJ
,/,
with/IN
investors/NNS
remaining/VBG
cautiously/RB
on/IN
the/DT
sidelines/NNS
./.
Contributing/VBG
to/TO
the/DT
market/NN
's/POS
reserved/JJ
stance/NN
was/VBD
the/DT
release/NN
later/RBR
in/IN
the/DT
day/NN
of/IN
new/JJ
data/NNS
on/IN
the/DT
health/NN
of/IN
the/DT
U.S./NNP
economy/NN
,/,
in/IN
the/DT
form/NN
of/IN
the/DT
U.S./NNP
index/NN
of/IN
leading/VBG
indicators/NNS
./.
Additionally/RB
,/,
the/DT
end/NN
of/IN
the/DT
month/NN
position-squaring/NN
might/MD
have/VB
also/RB
played/VBN
a/DT
minor/JJ
role/NN
,/,
traders/NNS
said/VBD
./.
Elsewhere/RB
,/,
share/NN
prices/NNS
closed/VBD
higher/RBR
in/IN
Amsterdam/NNP
,/,
Brussels/NNP
,/,
Milan/NNP
and/CC
Paris/NNP
./.
Prices/NNS
were/VBD
mixed/JJ
in/IN
Zurich/NNP
and/CC
lower/JJR
in/IN
Stockholm/NNP
./.
Stocks/NNS
closed/VBD
higher/RBR
in/IN
Hong/NNP
Kong/NNP
,/,
Manila/NNP
,/,
Singapore/NNP
,/,
Sydney/NNP
and/CC
Wellington/NNP
,/,
but/CC
were/VBD
lower/JJR
in/IN
Seoul/NNP
./.
Taipei/NNP
was/VBD
closed/VBN
for/IN
a/DT
holiday/NN
./.
Here/RB
are/VBP
price/NN
trends/NNS
on/IN
the/DT
world/NN
's/POS
major/JJ
stock/NN
markets/NNS
,/,
as/IN
calculated/VBN
by/IN
Morgan/NNP
Stanley/NNP
Capital/NNP
International/NNP
Perspective/NNP
,/,
Geneva/NNP
./.
To/TO
make/VB
them/PRP
directly/RB
comparable/JJ
,/,
each/DT
index/NN
is/VBZ
based/VBN
on/IN
the/DT
close/NN
of/IN
1969/CD
equaling/VBG
100/CD
./.
The/DT
percentage/NN
change/NN
is/VBZ
since/IN
year-end/NN
./.
French/JJ
consumer/NN
prices/NNS
rose/VBD
0.2/CD
%/NN
in/IN
September/NNP
from/IN
the/DT
previous/JJ
month/NN
and/CC
were/VBD
up/RB
3.4/CD
%/NN
from/IN
a/DT
year/NN
earlier/RB
,/,
according/VBG
to/TO
definitive/JJ
figures/NNS
from/IN
the/DT
National/NNP
Statistics/NNPS
Institute/NNP
./.
The/DT
state/NN
agency/NN
's/POS
figures/NNS
confirm/VBP
previous/JJ
estimates/NNS
and/CC
leave/VBP
the/DT
index/NN
at/IN
178.9/CD
,/,
up/RB
from/IN
178.5/CD
in/IN
August/NNP
and/CC
173.1/CD
a/DT
year/NN
earlier/RB
./.
The/DT
index/NN
is/VBZ
based/VBN
on/IN
1980/CD
equaling/VBG
100/CD
./.
A/DT
breakdown/NN
showed/VBD
that/IN
food/NN
prices/NNS
were/VBD
the/DT
most/RBS
active/JJ
part/NN
of/IN
growth/NN
with/IN
a/DT
rise/NN
of/IN
0.6/CD
%/NN
./.
An/DT
official/NN
linked/VBD
the/DT
gain/NN
essentially/RB
to/TO
higher/JJR
prices/NNS
for/IN
beef/NN
and/CC
pork/NN
./.
He/PRP
said/VBD
summer/NN
drought/NN
problems/NNS
that/WDT
had/VBD
hit/VBN
several/JJ
southern/JJ
agricultural/JJ
regions/NNS
had/VBD
stopped/VBN
being/VBG
a/DT
major/JJ
source/NN
of/IN
price/NN
pressure/NN
in/IN
September/NNP
./.
Japan/NNP
's/POS
index/NN
of/IN
leading/VBG
indicators/NNS
rose/VBD
to/TO
63.6/CD
in/IN
August/NNP
,/,
above/IN
the/DT
so-called/JJ
boom-or-bust/JJ
line/NN
of/IN
50/CD
for/IN
the/DT
first/JJ
time/NN
since/IN
May/NNP
,/,
the/DT
Economic/NNP
Planning/NNP
Agency/NNP
said/VBD
./.
The/DT
leading/VBG
index/NN
recovered/VBD
from/IN
July/NNP
's/POS
revised/JJ
level/NN
of/IN
36.6/CD
on/IN
strong/JJ
performances/NNS
in/IN
consumer/NN
durables/NNS
and/CC
machinery/NN
orders/NNS
,/,
among/IN
other/JJ
factors/NNS
,/,
according/VBG
to/TO
an/DT
agency/NN
spokeswoman/NN
./.
The/DT
index/NN
is/VBZ
intended/VBN
to/TO
measure/VB
future/JJ
economic/JJ
performance/NN
./.
A/DT
figure/NN
above/IN
50/CD
indicates/VBZ
the/DT
economy/NN
is/VBZ
likely/JJ
to/TO
expand/VB
;/:
one/CD
below/IN
50/CD
indicates/VBZ
a/DT
contraction/NN
may/MD
be/VB
ahead/RB
./.
Metromedia/NNP
Co./NNP
said/VBD
its/PRP$
Metromedia/NNP
Long/NNP
Distance/NNP
unit/NN
has/VBZ
been/VBN
renamed/VBN
Metromedia-ITT/NNP
Long/NNP
Distance/NNP
,/,
reflecting/VBG
acquisitions/NNS
from/IN
ITT/NNP
Corp./NNP
,/,
which/WDT
licenses/VBZ
its/PRP$
name/NN
to/TO
closely/RB
held/JJ
Metromedia/NNP
./.
Metromedia/NNP
said/VBD
its/PRP$
unit/NN
is/VBZ
the/DT
fifth-largest/JJ
provider/NN
of/IN
long-distance/NN
communications/NNS
service/NN
in/IN
the/DT
U.S./NNP
,/,
with/IN
projected/VBN
1989/CD
revenue/NN
of/IN
more/JJR
than/IN
$/$
550/CD
million/CD
./.
Metromedia/NNP
,/,
headed/VBN
by/IN
John/NNP
W./NNP
Kluge/NNP
,/,
has/VBZ
interests/NNS
in/IN
telecommunications/NN
,/,
robotic/JJ
painting/NN
,/,
computer/NN
software/NN
,/,
restaurants/NNS
and/CC
entertainment/NN
./.
South/JJ
Korean/JJ
consumer/NN
prices/NNS
rose/VBD
5/CD
%/NN
in/IN
the/DT
first/JJ
10/CD
months/NNS
of/IN
this/DT
year/NN
,/,
matching/VBG
the/DT
government/NN
's/POS
target/NN
for/IN
the/DT
entire/JJ
year/NN
,/,
according/VBG
to/TO
the/DT
Bank/NNP
of/IN
Korea/NNP
and/CC
the/DT
Economic/NNP
Planning/NNP
Board/NNP
./.
According/VBG
to/TO
reports/NNS
released/VBN
by/IN
the/DT
two/CD
government/NN
agencies/NNS
,/,
domestic/JJ
consumer/NN
and/CC
wholesale/JJ
prices/NNS
each/DT
rose/VBD
by/IN
0.2/CD
%/NN
in/IN
October/NNP
from/IN
the/DT
previous/JJ
month/NN
./.
As/IN
a/DT
result/NN
,/,
consumer/NN
prices/NNS
for/IN
the/DT
first/JJ
10/CD
months/NNS
of/IN
1989/CD
surged/VBD
by/IN
5/CD
%/NN
and/CC
wholesale/JJ
prices/NNS
by/IN
1.3/CD
%/NN
./.
The/DT
South/JJ
Korean/JJ
government/NN
had/VBD
been/VBN
projecting/VBG
a/DT
5/CD
%/NN
consumer/NN
price/NN
increase/NN
for/IN
the/DT
entire/JJ
year/NN
./.
Martin/NNP
Marietta/NNP
Corp./NNP
said/VBD
it/PRP
won/VBD
a/DT
$/$
38.2/CD
million/CD
contract/NN
from/IN
the/DT
U.S./NNP
Postal/NNP
Service/NNP
to/TO
manufacture/VB
and/CC
install/VB
automated/JJ
mail-sorting/VBG
machines/NNS
./.
Under/IN
terms/NNS
of/IN
the/DT
three-year/JJ
contract/NN
,/,
Martin/NNP
Marietta/NNP
said/VBD
it/PRP
will/MD
make/VB
and/CC
install/VB
267/CD
of/IN
the/DT
new/JJ
machines/NNS
at/IN
156/CD
postal/JJ
offices/NNS
./.
The/DT
new/JJ
machines/NNS
are/VBP
capable/JJ
of/IN
sorting/VBG
by/IN
zip/NN
code/NN
up/IN
to/TO
10,000/CD
large/JJ
flat/JJ
mail/NN
pieces/NNS
,/,
including/VBG
magazines/NNS
and/CC
parcels/NNS
,/,
an/DT
hour/NN
./.
Thomas/NNP
A./NN
Donovan/NNP
,/,
37/CD
years/NNS
old/JJ
,/,
formerly/RB
vice/NN
president/NN
,/,
West/NNP
Coast/NNP
operations/NNS
,/,
at/IN
this/DT
hazardous-waste-site/NN
remediation/NN
concern/NN
,/,
was/VBD
named/VBN
executive/NN
vice/NN
president/NN
and/CC
chief/JJ
operating/VBG
officer/NN
,/,
both/DT
newly/RB
created/VBN
posts/NNS
,/,
and/CC
a/DT
director/NN
,/,
filling/VBG
a/DT
vacancy/NN
./.
Canonie/NNP
said/VBD
it/PRP
anticipates/VBZ
naming/VBG
Mr./NNP
Donovan/NNP
to/TO
succeed/VB
Richard/NNP
F./NNP
Brissette/NNP
,/,
55/CD
,/,
as/IN
president/NN
and/CC
chief/JJ
executive/NN
officer/NN
,/,
effective/JJ
March/NNP
1/CD
./.
Mr./NNP
Brissette/NNP
will/MD
remain/VB
a/DT
Canonie/NNP
board/NN
member/NN
and/CC
will/MD
be/VB
a/DT
consultant/NN
to/TO
the/DT
company/NN
./.
Yields/NNS
on/IN
savings-type/JJ
certificates/NNS
of/IN
deposit/NN
dropped/VBD
slightly/RB
in/IN
the/DT
week/NN
ended/VBN
yesterday/NN
./.
The/DT
average/JJ
yield/NN
on/IN
a/DT
six-month/JJ
CD/NN
of/IN
$/$
50,000/CD
or/CC
less/JJR
was/VBD
7.90/CD
%/NN
,/,
compared/VBN
with/IN
7.94/CD
%/NN
a/DT
week/NN
earlier/RB
./.
The/DT
average/JJ
one-year/JJ
savings-type/JJ
CD/NN
was/VBD
down/RB
to/TO
7.99/CD
%/NN
from/IN
8.01/CD
%/NN
,/,
according/VBG
to/TO
Banxquote/NNP
Money/NNP
Markets/NNP
,/,
a/DT
New/NNP
York/NNP
information/NN
service/NN
that/WDT
tracks/VBZ
CD/NN
yields/NNS
./.
``/``
This/DT
week/NN
was/VBD
uneventful/JJ
for/IN
the/DT
CD/NN
market/NN
,/,
''/''
said/VBD
Norberto/NNP
Mehl/NNP
,/,
chairman/NN
of/IN
Banxquote/NNP
./.
``/``
The/DT
major/JJ
banks/NNS
have/VBP
n't/RB
even/RB
reacted/VBN
to/TO
sharp/JJ
rises/NNS
in/IN
the/DT
three-month/JJ
Treasury/NNP
bill/NN
rates/NNS
''/''
in/IN
the/DT
past/JJ
two/CD
weeks/NNS
./.
Banks/NNS
that/WDT
adjusted/VBD
payouts/NNS
on/IN
CDs/NNS
in/IN
the/DT
most/RBS
recent/JJ
week/NN
made/VBD
only/RB
fractional/JJ
moves/NNS
,/,
he/PRP
said/VBD
./.
The/DT
CD/NN
trend/NN
runs/VBZ
counter/RB
to/TO
the/DT
direction/NN
of/IN
short-term/JJ
interest/NN
rates/NNS
at/IN
the/DT
Treasury/NNP
bill/NN
auction/NN
Monday/NNP
./.
The/DT
average/JJ
six-month/JJ
bill/NN
was/VBD
sold/VBN
with/IN
a/DT
yield/NN
of/IN
8.04/CD
%/NN
,/,
up/RB
from/IN
7.90/CD
%/NN
./.
The/DT
average/JJ
three-month/JJ
issue/NN
rose/VBD
to/TO
8.05/CD
%/NN
from/IN
7.77/CD
%/NN
./.
Typically/RB
,/,
banks/NNS
offer/VBP
CD/NN
yields/NNS
higher/JJR
than/IN
those/DT
on/IN
Treasury/NNP
bills/NNS
,/,
which/WDT
are/VBP
considered/VBN
the/DT
safest/JJS
short-term/JJ
investments/NNS
;/:
banks/NNS
need/VBP
a/DT
competitive/JJ
edge/NN
to/TO
sell/VB
their/PRP$
products/NNS
./.
But/CC
when/WRB
market/NN
interest/NN
rates/NNS
move/VBP
up/RB
rapidly/RB
,/,
increases/NNS
in/IN
bank/NN
CD/NN
yields/NNS
sometimes/RB
lag/VBP
./.
Most/JJS
yields/NNS
on/IN
short-term/JJ
jumbo/JJ
CDs/NNS
,/,
those/DT
with/IN
denominations/NNS
over/IN
$/$
90,000/CD
,/,
also/RB
moved/VBN
in/IN
the/DT
opposite/JJ
direction/NN
of/IN
Treasury/NNP
bill/NN
yields/NNS
./.
The/DT
average/JJ
six-month/JJ
yield/NN
on/IN
a/DT
jumbo/JJ
CD/NN
was/VBD
at/IN
7.90/CD
%/NN
,/,
down/RB
from/IN
7.93/CD
%/NN
,/,
Banxquote/NNP
said/VBD
./.
For/IN
longer-term/JJR
CDs/NNS
,/,
yields/NNS
were/VBD
up/RP
./.
The/DT
average/JJ
two-year/JJ
and/CC
five-year/JJ
jumbos/NNS
were/VBD
up/RB
0.02/CD
of/IN
a/DT
percentage/NN
point/NN
to/TO
7.91/CD
%/NN
and/CC
7.96/CD
%/NN
,/,
respectively/RB
./.
However/RB
,/,
CDs/NNS
sold/VBD
through/IN
major/JJ
broker-dealer/JJ
networks/NNS
were/VBD
up/RP
slightly/RB

almost/RB
across/IN
the/DT
board/NN
./.
The/DT
average/JJ
six-month/JJ
CD/NN
in/IN
that/DT
category/NN
added/VBD
0.05/CD
percentage/NN
point/NN
to/TO
8.35/CD
%/NN
,/,
for/IN
example/NN
./.
Mr./NNP
Mehl/NNP
attributed/VBD
the/DT
rise/NN
specifically/RB
to/TO
the/DT
Treasury/NNP
bill/NN
increase/NN
./.
Among/IN
the/DT
major/JJ
banks/NNS
surveyed/VBN
by/IN
Banxquote/NNP
in/IN
six/CD
regions/NNS
of/IN
the/DT
country/NN
,/,
8.33/CD
%/NN
is/VBZ
the/DT
highest/JJS
yield/NN
available/JJ
./.
It/PRP
is/VBZ
offered/VBN
by/IN
the/DT
flagship/NN
banks/NNS
of/IN
New/NNP
York/NNP
's/POS
Manufacturers/NNPS
Hanover/NNP
Corp./NNP
in/IN
the/DT
one-year/JJ
maturity/NN
only/RB
./.
The/DT
yield/NN
is/VBZ
offered/VBN
across/IN
a/DT
range/NN
of/IN
maturities/NNS
at/IN
San/NNP
Francisco/NNP
's/POS
BankAmerica/NNP
Corp./NNP
and/CC
Wells/NNP
Fargo/NNP
&/CC
Co/NNP
./.
Just/RB
two/CD
weeks/NNS
ago/RB
,/,
BankAmerica/NNP
's/POS
yields/NNS
in/IN
many/JJ
of/IN
those/DT
maturities/NNS
was/VBD
8.61/CD
%/NN
./.
Still/RB
,/,
on/IN
average/NN
,/,
the/DT
major/JJ
California/NNP
banks/NNS
have/VBP
the/DT
highest/JJS
yields/NNS
on/IN
CDs/NNS
,/,
according/VBG
to/TO
Banxquote/NNP
./.
The/DT
average/JJ
yield/NN
there/RB
on/IN
six-month/JJ
issues/NNS
is/VBZ
8.32/CD
%/NN
./.
I/PRP
had/VBD
to/TO
reach/VB
back/RB
to/TO
French/NNP
101/CD
when/WRB
the/DT
monsieur/NN
avec/FW
clipboard/NN
leaned/VBD
over/IN
my/PRP$
shoulder/NN
during/IN
the/DT
coffee/NN
phase/NN
of/IN
dinner/NN
and/CC
asked/VBD
whether/IN
I/PRP
wanted/VBD
to/TO
ride/VB
in/IN
a/DT
montgolfiere/FW
./.
I/PRP
was/VBD
a/DT
last-minute/JJ
attendee/NN
at/IN
a/DT
French/JJ
journalism/NN
convention/NN
and/CC
so/RB
far/RB
the/DT
festivities/NNS
had/VBD
been/VBN
taken/VBN
up/RB
entirely/RB
by/IN
eating/NN
,/,
drinking/NN
,/,
smoking/NN
,/,
sleeping/NN
and/CC
drinking/NN
./.
The/DT
man/NN
with/IN
the/DT
clipboard/NN
represented/VBD
a/DT
halfhearted/JJ
attempt/NN
to/TO
introduce/VB
a/DT
bit/NN
of/IN
les/FW
sportif/FW
into/IN
our/PRP$
itinerary/NN
./.
But/CC
as/IN
the/DT
French/NNPS
embody/VBP
a/DT
Zen-like/JJ
state/NN
of/IN
blase/NN
when/WRB
it/PRP
comes/VBZ
to/TO
athletics/NNS
a/DT
Nautilus/JJ
machine/NN
in/IN
Paris/NNP
my/PRP$
fellow/JJ
conventioners/NNS
were/VBD
having/VBG
none/NN
of/IN
it/PRP
./.
The/DT
diners/NNS
at/IN
my/PRP$
table/NN
simply/RB
lit/VBD
more/JJR
Gauloises/NNPS
and/CC
scoffed/VBD
at/IN
the/DT
suggestion/NN
of/IN
interrupting/VBG
a/DT
perfectly/RB
good/JJ
Saturday/NNP
morning/NN
to/TO
go/VB
golfing/NN
or/CC
even/RB
montgolfing/NN
(/(
ballooning/NN
to/TO
you/PRP
;/:
the/DT
brothers/NNS
Montgolfier/NNP
,/,
French/JJ
of/IN
course/NN
,/,
were/VBD
the/DT
world/NN
's/POS
first/JJ
hot-air/JJ
balloonists/NNS
Back/RB
in/IN
the/DT
U.S.A./NNP
this/DT
kind/NN
of/IN
chi-chi/JJ
airborne/JJ
activity/NN
wins/VBZ
heartwarmingly/RB
covetous/JJ
responses/NNS
./.
As/IN
in/IN
:/:
``/``
You/PRP
went/VBD
ballooning/VBG
?/.
?/.
!/.
!/.
In/IN
France/NNP
?/.
?/.
!/.
!/.
''/''
Americans/NNPS
it/PRP
seems/VBZ
have/VBP
followed/VBN
Malcolm/NNP
Forbes/NNP
's/POS
hot-air/JJ
lead/NN
and/CC
taken/VBN
to/TO
ballooning/NN
in/IN
a/DT
heady/JJ
way/NN
./.
During/IN
the/DT
past/JJ
25/CD
years/NNS
,/,
the/DT
number/NN
of/IN
balloonists/NNS
(/(
those/DT
who/WP
have/VBP
passed/VBN
a/DT
Federal/NNP
Aviation/NNP
Authority/NNP
lighter-than-air/JJ
test/NN
a/DT
couple/JJ
hundred/CD
to/TO
several/JJ
thousand/CD
,/,
with/IN
some/DT
estimates/NNS
running/VBG
as/RB
high/JJ
as/IN
10,000/CD
./.
Some/DT
30/CD
balloon/NN
shows/NNS
are/VBP
held/VBN
annually/RB
in/IN
the/DT
U.S./NNP
,/,
including/VBG
the/DT
world/NN
's/POS
largest/JJS
convocation/NN
of/IN
ersatz/JJ
Phineas/NNP
Foggs/NNP
--/:
the/DT
nine-day/JJ
Albuquerque/NNP
International/NNP
Balloon/NNP
Fiesta/NNP
that/WDT
attracts/VBZ
some/DT
800,000/CD
enthusiasts/NNS
and/CC
more/JJR
than/IN
500/CD
balloons/NNS
,/,
some/DT
of/IN
which/WDT
are/VBP
fetchingly/RB
shaped/VBN
to/TO
resemble/VB
Carmen/NNP
Miranda/NNP
,/,
Garfield/NNP
or/CC
a/DT
12-story-high/JJ
condom/NN
./.
The/DT
condom/NN
balloon/NN
was/VBD
denied/VBN
official/JJ
entry/NN
status/NN
this/DT
year/NN
./.
But/CC
in/IN
Epinal/NNP
,/,
a/DT
gray/JJ
16th-century/JJ
river/NN
town/NN
adjacent/JJ
to/TO
France/NNP
's/POS
Vosges/NNP
mountain/NN
region/NN
,/,
none/NN
of/IN
these/DT
Yankee-come-lately/JJ
enthusiasms/NNS
for/IN
things/NNS
aloft/RB
was/VBD
evident/JJ
./.
Ballooning/NN
at/IN
the/DT
de/FW
rigueur/FW
hour/NN
of/IN
6/CD
a.m./RB
held/VBD
all/PDT
the/DT
attraction/NN
for/IN
most/JJS
people/NNS
of/IN
sunrise/NN
root-canal/NN
work/NN
./.
Feeling/VBG
the/DT
naggings/NNS
of/IN
a/DT
culture/NN
imperative/NN
,/,
I/PRP
promptly/RB
signed/VBD
up/RB
./.
The/DT
first/JJ
thing/NN
anybody/NN
will/MD
tell/VB
you/PRP
about/IN
ballooning/NN
is/VBZ
that/IN
it/PRP
requires/VBZ
zip/NN
in/IN
the/DT
way/NN
of/IN
athletic/JJ
prowess/NN
,/,
or/CC
even/RB
a/DT
measure/NN
of/IN
derring-do/NN
./.
you/PRP
do/VBP
n't/RB
look/VB
down/RB
./.
They/PRP
will/MD
also/RB
tell/VB
you/PRP
that/RB
even/RB
if/IN
you/PRP
hate/VBP
heights/NNS
,/,
you/PRP
can/MD
still/RB
balloon/VB
./.
I/PRP
still/RB
say/VB
do/VBP
n't/RB
look/VB
down/RB
./.
At/IN
least/JJS
not/RB
when/WRB
you/PRP
are/VBP
ascending/VBG
./.
What/WP
they/PRP
wo/MD
n't/RB
tell/VB
you/PRP
is/VBZ
not/RB
to/TO
go/VB
aloft/RB
in/IN
anything/NN
you/PRP
do/VBP
n't/RB
want/VB
to/TO
get/VB
wet/JJ
./.
I/PRP
'm/VBP
not/RB
referring/VBG
to/TO
the/DT
traditional/JJ
champagne/NN
drenching/NN
during/IN
the/DT
back-on-terra-firma/JJ
toast/NN
./.
I/PRP
'm/VBP
talking/VBG
about/IN
landing/NN
in/IN
a/DT
canal/NN
./.
In/IN
a/DT
porous/JJ
wicker/NN
basket/NN
./.
With/IN
a/DT
pilot/NN
who/WP
speaks/VBZ
no/DT
English/NNP
./.
To/TO
wit/NN
,/,
my/PRP$
maiden/JJ
voyage/NN
novitiates/NNS
are/VBP
referred/VBN
to/TO
as/IN
virgins/NNS
dawn/NN
on/IN
a/DT
dew-sodden/JJ
fairway/NN
and/CC
ended/VBD
at/IN
noon/NN
in/IN
a/DT
soggy/JJ
field/NN
./.
Balloon/NN
flights/NNS
almost/RB
always/RB
occur/VBP
at/IN
dawn/NN
or/CC
dusk/NN
,/,
when/WRB
the/DT
winds/NNS
are/VBP
lightest/JJS
./.
lots/NNS
of/IN
coffee/NN
drinking/NN
while/IN
watching/VBG
the/DT
balloons/NNS
inflate/VB
and/CC
lots/NNS
of/IN
standing/VBG
around/RB
deciding/VBG
who/WP
would/MD
fly/VB
in/IN
what/WDT
balloon/NN
and/CC
in/IN
what/WDT
order/NN
the/DT
baskets/NNS
hold/VBP
no/RB
more/JJR
than/IN
four/CD
passengers/NNS
When/WRB
it/PRP
was/VBD
n't/RB
my/PRP$
turn/NN
in/IN
the/DT
balloon/NN
I/PRP
followed/VBD
its/PRP$
progress/NN
from/IN
the/DT
``/``
chase/JJ
car/NN
,/,
''/''
listening/VBG
to/TO
the/DT
driver/NN
holler/VB
into/IN
a/DT
walkie-talkie/NN
./.
After/IN
long/JJ
stretches/NNS
of/IN
this/DT
attendant/JJ
ground/NN
activity/NN
came/VBD
20/CD
or/CC
so/RB
lovely/JJ
minutes/NNS
of/IN
drifting/VBG
above/IN
the/DT
Vosges/NNPS
watching/VBG
the/DT
silver/NN
mists/NNS
rise/VB
off/IN
the/DT
river/NN
and/CC
the/DT
French/JJ
cows/NNS
amble/VB
about/RB
the/DT
fields/NNS
./.
It/PRP
's/VBZ
hard/JJ
not/RB
to/TO
feel/VB
that/IN
God/NNP
's/VBZ
in/IN
his/PRP$
heaven/NN
with/IN
this/DT
kind/NN
of/IN
bird's-eye/JJ
view/NN
of/IN
the/DT
world/NN
,/,
even/RB
if/IN
your/PRP$
pilote/FW
in/IN
silly/JJ
plaid/NN
beret/NN
kept/VBD
pointing/VBG
out/RB
how/WRB
``/``
belle/FW
''/''
it/PRP
all/DT
was/VBD
./.
Eventually/RB
little/JJ
French/JJ
farmers/NNS
and/CC
their/PRP$
little/JJ
French/JJ
farmwives/NNS
came/VBD
out/IN
of/IN
their/PRP$
stone/NN
houses/NNS
and/CC
put/VB
their/PRP$
hands/NNS
above/IN
their/PRP$
tiny/JJ
eyes/NNS
and/CC
squinted/VBD
at/IN
us/PRP
./.
No/DT
wonder/NN
./.
We/PRP
were/VBD
coming/VBG
down/RB
straight/RB
into/IN
their/PRP$
canal/NN
./.
See/VB
,/,
the/DT
other/JJ
rule/NN
of/IN
thumb/NN
about/IN
ballooning/NN
is/VBZ
that/IN
you/PRP
ca/MD
n't/RB
steer/VB
./.
And/CC
neither/RB
can/MD
your/PRP$
pilot/NN
./.
You/PRP
can/MD
go/VB
only/RB
up/RB
or/CC
down/RB
(/(
by/IN
heating/VBG
the/DT
balloon/NN
's/POS
air/NN
with/IN
a/DT
propane/NN
burner/NN
,/,
which/WDT
does/VBZ
make/VB
the/DT
top/NN
of/IN
your/PRP$
head/NN
feel/VB
hot/JJ
the/DT
air/NN
currents/NNS
./.
Which/WDT
makes/VBZ
the/DT
chase/NN
car/NN
necessary/JJ
./.
Most/JJS
balloonists/NNS
seldom/RB
go/VB
higher/RBR
than/IN
2,000/CD
feet/NNS
and/CC
most/JJS
average/VBP
a/DT
leisurely/JJ
5-10/JJ
miles/NNS
an/DT
hour/NN
./.
When/WRB
the/DT
balloon/NN
is/VBZ
cruising/VBG
along/RB
at/IN
a/DT
steady/JJ
altitude/NN
there/EX
is/VBZ
little/JJ
sense/NN
of/IN
motion/NN
./.
Only/RB
when/WRB
one/NN
is/VBZ
ascending/VBG
--/:
or/CC
in/IN
our/PRP$
case/NN
descending/VBG
a/DT
tad/RB
trop/FW
rapidement/FW
--/:
does/VBZ
one/CD
feel/NN
,/,
well/UH
,/,
airborne/JJ
in/IN
a/DT
picnic/NN
basket/NN
./.
``/``
What/WP
's/VBZ
he/PRP
doing/VBG
?/.
''/''
hissed/VBD
my/PRP$
companion/NN
,/,
who/WP
was/VBD
the/DT
only/RB
other/JJ
English-speaking/JJ
member/NN
of/IN
the/DT
convention/NN
and/CC
whose/WP$
knuckles/NNS
were/VBD
white/JJ
./.
``/``
Attention/VB
,/,
''/''
yelled/VBD
our/PRP$
pilot/NN
as/IN
our/PRP$
basket/NN
plunged/VBD
into/IN
the/DT
canal/NN
./.
``/``
You/PRP
bet/RB
attention/NN
,/,
''/''
I/PRP
yelled/VBD
back/RB
,/,
leaping/VBG
atop/IN
the/DT
propane/NN
tanks/NNS
,/,
``/``
I/PRP
'm/VBP
wearing/VBG
alligator/NN
loafers/NNS
!/.
''/''
Our/PRP$
pilot/NN
simply/RB
laughed/VBD
,/,
fired/VBD
up/RP
the/DT
burner/NN
and/CC
with/IN
another/DT
blast/NN
of/IN
flame/NN
lifted/VBD
us/PRP
,/,
oh/UH
,/,
a/DT
good/JJ
12-inches/NNS
above/IN
the/DT
water/NN
level/NN
./.
We/PRP
scuttled/VBD
along/IN
for/IN
a/DT
few/JJ
feet/NNS
before/IN
he/PRP
plunged/VBD
us/PRP
into/IN
the/DT
drink/NN
again/RB
./.
Eventually/RB
we/PRP
came/VBD
to/TO
rest/VB
in/IN
a/DT
soggy/JJ
patch/NN
of/IN
field/NN
where/WRB
we/PRP
had/VBD
the/DT
exquisite/JJ
pleasure/NN
of/IN
scrambling/VBG
out/IN
of/IN
the/DT
basket/NN
into/IN
the/DT
mud/NN
while/IN
the/DT
French/JJ
half/NN
of/IN
our/PRP$
ballooning/NN
tag/NN
team/NN
scrambled/VBD
in/RB
./.
I/PRP
looked/VBD
at/IN
my/PRP$
watch/NN
./.
Barely/RB
half-an-hour/NN
aloft/RB
./.
Back/RB
in/IN
the/DT
chase/NN
car/NN
,/,
we/PRP
drove/VBD
around/RB
some/DT
more/JJR
,/,
got/VBD
stuck/VBN
in/IN
a/DT
ditch/NN
,/,
enlisted/VBD
the/DT
aid/NN
of/IN
a/DT
local/JJ
farmer/NN
to/TO
get/VB
out/RP
the/DT
trailer/NN
hitch/NN
and/CC
pull/VB
us/PRP
out/IN
of/IN
the/DT
ditch/NN
./.
We/PRP
finally/RB
rendezvoused/VBD
with/IN
our/PRP$
balloon/NN
,/,
which/WDT
had/VBD
come/VBN
to/TO
rest/VB
on/IN
a/DT
dirt/NN
road/NN
amid/IN
a/DT
clutch/NN
of/IN
Epinalers/NNPS
who/WP
watched/VBD
us/PRP
disassemble/VB
our/PRP$
craft/NN
--/:
another/DT
half-an-hour/NN
of/IN
non-flight/JJ
activity/NN
--/:
that/WDT
included/VBD
the/DT
precision/NN
routine/NN
of/IN
yanking/VBG
the/DT
balloon/NN
to/TO
the/DT
ground/NN
,/,
punching/VBG
all/PDT
the/DT
air/NN
out/IN
of/IN
it/PRP
,/,
rolling/VBG
it/PRP
up/RP
and/CC
cramming/VBG
it/PRP
and/CC
the/DT
basket/NN
into/IN
the/DT
trailer/NN
./.
It/PRP
was/VBD
the/DT
most/JJS
exercise/NN
we/PRP
'd/VBD
had/VBN
all/DT
morning/NN
and/CC
it/PRP
was/VBD
followed/VBN
by/IN
our/PRP$
driving/VBG
immediately/RB
to/TO
the/DT
nearest/JJS
watering/NN
hole/NN
./.
This/DT
meant/VBD
returning/VBG
to/TO
the/DT
golf/NN
course/NN
,/,
where/WRB
we/PRP
watched/VBD
a/DT
few/JJ
French/JJ
duffers/NNS
maul/VB
the/DT
first/JJ
tee/NN
while/IN
we/PRP
sat/VBD
under/IN
Cinzano/NNP
umbrellas/NNS
,/,
me/PRP
nursing/VBG
an/DT
espresso/NN
and/CC
my/PRP$
ego/NN
./.
A/DT
whole/JJ
morning/NN
of/IN
ballooning/NN
and/CC
I/PRP
had/VBD
been/VBN
off/IN
the/DT
ground/NN
barely/RB
30/CD
minutes/NNS
./.
Still/RB
,/,
I/PRP
figured/VBD
the/DT
event/NN
's/POS
envy-quotient/NN
back/RB
in/IN
the/DT
U.S.A./NN
was/VBD
near/RB
peerless/JJ
./.
As/IN
for/IN
the/DT
ride/NN
back/RB
to/TO
camp/NN
,/,
our/PRP$
pilot/NN
and/CC
all/PDT
the/DT
other/JJ
French-speaking/JJ
passengers/NNS
clambered/VBD
into/IN
the/DT
chase/JJ
car/NN
./.
My/PRP$
American/JJ
companion/NN
and/CC
I/PRP
were/VBD
left/VBN
to/TO
ride/VB
alfresco/RB
in/IN
the/DT
wicker/NN
basket/NN
./.
As/IN
we/PRP
streaked/VBD
by/IN
a/DT
blase/JJ
gendarme/NN
,/,
I/PRP
could/MD
n't/RB
resist/VB
rearing/VBG
up/RB
on/IN
my/PRP$
soggy/JJ
loafers/NNS
and/CC
saluting/VBG
./.
Ms./NNP
de/NNP
Vries/NNP
is/VBZ
a/DT
free-lance/JJ
writer/NN
./.
Treasury/NNP
Undersecretary/NNP
David/NNP
Mulford/NNP
defended/VBD
the/DT
Treasury/NNP
's/POS
efforts/NNS
this/DT
fall/NN
to/TO
drive/VB
down/RP
the/DT
value/NN
of/IN
the/DT
dollar/NN
,/,
saying/VBG
it/PRP
helped/VBD
minimize/VB
damage/NN
from/IN
the/DT
190-point/JJ
drop/NN
in/IN
the/DT
stock/NN
market/NN
Oct./NNP
13/CD
./.
Testifying/VBG
before/IN
a/DT
House/NNP
subcommittee/NN
,/,
Mr./NNP
Mulford/NNP
said/VBD
that/IN
if/IN
the/DT
Treasury/NNP
had/VBD
n't/RB
intervened/VBN
in/IN
foreign-exchange/JJ
markets/NNS
in/IN
September/NNP
and/CC
early/JJ
October/NNP
to/TO
reduce/VB
the/DT
dollar/NN
's/POS
value/NN
,/,
the/DT
plunge/NN
in/IN
the/DT
stock/NN
market/NN
might/MD
have/VB
provoked/VBN
a/DT
steep/JJ
fall/NN
in/IN
the/DT
currency/NN
that/WDT
might/MD
have/VB
``/``
unhinged/VBN
financial/JJ
markets/NNS
./.
''/''
Mr./NNP
Mulford/NNP
,/,
responding/VBG
to/TO
critics/NNS
of/IN
intervention/NN
,/,
also/RB
said/VBD
intervention/NN
is/VBZ
``/``
highly/RB
visible/JJ
,/,
''/''
is/VBZ
taken/VBN
seriously/RB
by/IN
financial/JJ
markets/NNS
and/CC
works/VBZ
better/RBR
than/IN
``/``
was/VBD
recognized/VBN
some/DT
time/NN
ago/RB
./.
''/''
Differences/NNS
between/IN
the/DT
Treasury/NNP
and/CC
the/DT
Federal/NNP
Reserve/NNP
on/IN
the/DT
usefulness/NN
of/IN
intervention/NN
to/TO
help/VB
restrain/VB
the/DT
dollar/NN
resurfaced/VBD
at/IN
the/DT
hearing/NN
./.
Fed/NNP
Vice/NNP
Chairman/NNP
Manuel/NNP
Johnson/NNP
,/,
who/WP
had/VBD
dissented/VBN
from/IN
the/DT
Treasury/NNP
's/POS
policy/NN
,/,
told/VBD
lawmakers/NNS
,/,
``/``
I/PRP
became/VBD
convinced/JJ
about/IN
what/WP
looked/VBD
to/TO
me/PRP
like/IN
an/DT
attempt/NN
to/TO
push/VB
the/DT
dollar/NN
down/RP
against/IN
the/DT
fundamentals/NNS
in/IN
the/DT
market/NN
./.
''/''
Intervention/NN
,/,
he/PRP
added/VBD
,/,
is/VBZ
useful/JJ
only/RB
to/TO
smooth/VB
disorderly/JJ
markets/NNS
,/,
not/RB
to/TO
fundamentally/RB
influence/VB
the/DT
dollar/NN
's/POS
value/NN
./.
Rep./NNP
John/NNP
LaFalce/NNP
D./NNP
,/,
N.Y/NNP
./.
Mr./NNP
Johnson/NNP
refused/VBD
to/TO
testify/VB
jointly/RB
with/IN
Mr./NNP
Mulford/NNP
and/CC
instead/RB
asked/VBD
to/TO
appear/VB
after/IN
the/DT
Treasury/NNP
official/NN
had/VBD
completed/VBN
his/PRP$
testimony/NN
./.
A/DT
Fed/NNP
spokesman/NN
denied/VBD
Mr./NNP
LaFalce/NNP
's/POS
statement/NN
./.
Mr./NNP
Mulford/NNP
said/VBD
reports/NNS
of/IN
tension/NN
between/IN
the/DT
Treasury/NNP
and/CC
Fed/NNP
have/VBP
been/VBN
exaggerated/JJ
,/,
insisting/VBG
that/IN
they/PRP
involved/VBD
``/``
nuances/NNS
./.
''/''
Mr./NNP
Johnson/NNP
also/RB
said/VBD
that/IN
``/``
in/IN
the/DT
scheme/NN
of/IN
things/NNS
,/,
these/DT
things/NNS
are/VBP
minor/JJ
./.
''/''
On/IN
other/JJ
matters/NNS
,/,
Mr./NNP
Mulford/NNP
said/VBD
West/NNP
Germany/NNP
is/VBZ
contributing/VBG
to/TO
imbalances/NNS
in/IN
the/DT
world/NN
economy/NN
because/IN
of/IN
its/PRP$
success/NN
as/IN
an/DT
exporter/NN
./.
``/``
The/DT
solution/NN
is/VBZ
stronger/JJR
domestic/JJ
growth/NN
Germany/NNP
he/PRP
said/VBD
./.
But/CC
because/IN
the/DT
growth/NN
of/IN
the/DT
German/JJ
economy/NN
has/VBZ
been/VBN
stronger/JJR
than/IN
expected/VBN
,/,
Mr./NNP
Mulford/NNP
said/VBD
,/,
it/PRP
's/VBZ
difficult/JJ
for/IN
the/DT
U.S./NNP
to/TO
argue/VB
that/IN
Germany/NNP
ought/MD
to/TO
adopt/VB
more/RBR
stimulative/JJ
monetary/JJ
and/CC
fiscal/JJ
policies/NNS
./.
Germany/NNP
's/POS
trade/NN
surplus/NN
is/VBZ
largely/RB
with/IN
other/JJ
European/JJ
countries/NNS
rather/RB
than/IN
with/IN
the/DT
U.S./NNP
,/,
Mr./NNP
Mulford/NNP
acknowledged/VBD
./.
But/CC
nonetheless/RB
U.S./NNP
companies/NNS
might/MD
be/VB
more/RBR
successful/JJ
in/IN
European/JJ
markets/NNS
if/IN
not/RB
for/IN
the/DT
German/JJ
export/NN
push/NN
,/,
he/PRP
said/VBD
./.
Five/CD
officials/NNS
of/IN
this/DT
investment/NN
banking/VBG
firm/NN
were/VBD
elected/VBN
directors/NNS
:/:
E./NNP
Garrett/NNP
Bewkes/NNP
III/NNP
,/,
a/DT
38-year-old/JJ
managing/VBG
director/NN
in/IN
the/DT
mergers/NNS
and/CC
acquisitions/NNS
department/NN
;/:
Michael/NNP
R./NNP
Dabney/NNP
,/,
44/CD
,/,
a/DT
managing/VBG
director/NN
who/WP
directs/VBZ
the/DT
principal/JJ
activities/NNS
group/NN
which/WDT
provides/VBZ
funding/NN
for/IN
leveraged/JJ
acquisitions/NNS
;/:
Richard/NNP
Harriton/NNP
,/,
53/CD
,/,
a/DT
general/JJ
partner/NN
who/WP
heads/VBZ
the/DT
correspondent/NN
clearing/NN
services/NNS
;/:
Michael/NNP
Minikes/NNP
,/,
46/CD
,/,
a/DT
general/JJ
partner/NN
who/WP
is/VBZ
treasurer/NN
;/:
and/CC
William/NNP
J./NNP
Montgoris/NNP
,/,
42/CD
,/,
a/DT
general/JJ
partner/NN
who/WP
is/VBZ
also/RB
senior/JJ
vice/NN
president/NN
of/IN
finance/NN
and/CC
chief/JJ
financial/JJ
officer/NN
./.
The/DT
board/NN
increased/VBN
by/IN
one/CD
to/TO
26/CD
members/NNS
./.
In/IN
the/DT
past/NN
year/NN
,/,
one/CD
inside/JJ
director/NN
resigned/VBD
,/,
while/IN
three/CD
others/NNS
retired/VBD
./.
Some/DT
U.S./NNP
allies/NNS
are/VBP
complaining/VBG
that/IN
President/NNP
Bush/NNP
is/VBZ
pushing/VBG
conventional-arms/JJ
talks/NNS
too/RB
quickly/RB
,/,
creating/VBG
a/DT
risk/NN
that/IN
negotiators/NNS
will/MD
make/VB
errors/NNS
that/WDT
could/MD
affect/VB
the/DT
security/NN
of/IN
Western/NNP
Europe/NNP
for/IN
years/NNS
./.
Concerns/NNS
about/IN
the/DT
pace/NN
of/IN
the/DT
Vienna/NNP
talks/NNS
--/:
which/WDT
are/VBP
aimed/VBN
at/IN
the/DT
destruction/NN
of/IN
some/DT
100,000/CD
weapons/NNS
,/,
as/RB
well/RB
as/IN
major/JJ
reductions/NNS
and/CC
realignments/NNS
of/IN
troops/NNS
in/IN
central/JJ
Europe/NNP
--/:
also/RB
are/VBP
being/VBG
registered/VBN
at/IN
the/DT
Pentagon/NNP
./.
Mr./NNP
Bush/NNP
has/VBZ
called/VBN
for/IN
an/DT
agreement/NN
by/IN
next/JJ
September/NNP
at/IN
the/DT
latest/JJS
./.
But/CC
some/DT
American/JJ
defense/NN
officials/NNS
believe/VBP
the/DT
North/NNP
Atlantic/NNP
Treaty/NNP
Organization/NNP
should/MD
take/VB
more/JJR
time/NN
to/TO
examine/VB
the/DT
long-term/JJ
implications/NNS
of/IN
the/DT
options/NNS
being/VBG
considered/VBN
./.
For/IN
one/CD
thing/NN
,/,
Pentagon/NNP
officials/NNS
,/,
who/WP
asked/VBD
not/RB
to/TO
be/VB
identified/VBN
,/,
worry/VBP
that/IN
the/DT
U.S./NNP
will/MD
have/VB
a/DT
much/RB
tougher/JJR
time/NN
persuading/VBG
Europeans/NNPS
to/TO
keep/VB
some/DT
short-range/JJ
nuclear/JJ
weapons/NNS
on/IN
their/PRP$
soil/NN
once/IN
Soviet/JJ
armored/JJ
forces/NNS
are/VBP
thinned/VBN
out/RP
./.
At/IN
the/DT
same/JJ
time/NN
,/,
they/PRP
contend/VBP
that/IN
a/DT
reduction/NN
of/IN
NATO/NNP
forces/NNS
under/IN
a/DT
treaty/NN
will/MD
increase/VB
the/DT
possibility/NN
of/IN
a/DT
conventional/JJ
Soviet/JJ
attack/NN
unless/IN
the/DT
West/NNP
retains/VBZ
a/DT
residual/JJ
force/NN
of/IN
nuclear/JJ
weapons/NNS
in/IN
Europe/NNP
./.
Allies/NNS
concerned/VBN
about/IN
the/DT
deadline/NN
include/VBP
the/DT
British/NNPS
,/,
French/NNPS
and/CC
smaller/JJR
NATO/NNP
allies/NNS
,/,
some/DT
of/IN
whom/WP
do/VBP
n't/RB
have/VB
adequate/JJ
staffs/NNS
to/TO
provide/VB
quick/JJ
answers/NNS
to/TO
the/DT
questions/NNS
being/VBG
raised/VBN
by/IN
what/WP
generally/RB
are/VBP
considered/VBN
the/DT
most/RBS
complex/JJ
arms-control/NN
talks/NNS
ever/RB
attempted/VBN
./.
So/RB
far/RB
,/,
no/DT
ally/NN
has/VBZ
complained/VBN
openly/RB
,/,
preserving/VBG
the/DT
impression/NN
that/IN
NATO/NNP
is/VBZ
in/IN
line/NN
with/IN
the/DT
Bush/NNP
position/NN
that/IN
a/DT
quick/JJ
agreement/NN
bringing/VBG
Soviet/JJ
conventional/JJ
forces/NNS
down/RB
to/TO
parity/NN
with/IN
NATO/NNP
is/VBZ
the/DT
West/NNP
's/POS
top/JJ
bargaining/NN
priority/NN
./.
But/CC
even/RB
though/IN
NATO/NNP
negotiators/NNS
have/VBP
only/RB
10/CD
months/NNS
left/VBN
under/IN
the/DT
Bush/NNP
timetable/NN
,/,
they/PRP
are/VBP
still/RB
wrestling/VBG
over/IN
such/JJ
seemingly/RB
fundamental/JJ
questions/NNS
as/IN
``/``
What/WP
is/VBZ
a/DT
tank/NN
?/.
''/''
Five/CD
of/IN
the/DT
six/CD
categories/NNS
of/IN
weapons/NNS
under/IN
negotiation/NN
have/VBP
n't/RB
even/RB
been/VBN
defined/VBN
./.
Tanks/NNS
currently/RB
are/VBP
defined/VBN
as/IN
armored/JJ
vehicles/NNS
weighing/VBG
25/CD
tons/NNS
or/CC
more/JJR
that/IN
carry/VB
large/JJ
guns/NNS
./.
The/DT
Soviets/NNPS
complicated/VBD
the/DT
issue/NN
by/IN
offering/VBG
to/TO
include/VB
light/JJ
tanks/NNS
,/,
which/WDT
are/VBP
as/RB
light/JJ
as/IN
10/CD
tons/NNS
./.
Oleg/NNP
A./NN
Grinevsky/NNP
,/,
the/DT
chief/JJ
Soviet/JJ
negotiator/NN
in/IN
the/DT
conventional-arms/JJ
talks/NNS
,/,
argued/VBD
that/IN
this/DT
would/MD
mean/VB
the/DT
Soviets/NNPS
would/MD
have/VB
to/TO
destroy/VB
some/DT
1,800/CD
tanks/NNS
,/,
while/IN
the/DT
U.S./NNP
would/MD
lose/VB
none/NN
because/IN
it/PRP
has/VBZ
no/DT
light/JJ
tanks/NNS
in/IN
Europe/NNP
./.
But/CC
the/DT
issue/NN
is/VBZ
stickier/JJR
than/IN
it/PRP
seems/VBZ
./.
France/NNP
,/,
Britain/NNP
and/CC
Italy/NNP
all/DT
have/VBP
light/JJ
tanks/NNS
they/PRP
would/MD
like/VB
to/TO
keep/VB
out/IN
of/IN
the/DT
talks/NNS
./.
And/CC
some/DT
U.S./NNP
Army/NNP
analysts/NNS
worry/VBP
that/IN
the/DT
proposed/VBN
Soviet/JJ
redefinition/NN
is/VBZ
aimed/VBN
at/IN
blocking/VBG
the/DT
U.S./NNP
from/IN
developing/VBG
lighter/JJR
,/,
more/RBR
transportable/JJ
,/,
high-technology/JJ
tanks/NNS
./.
Defining/VBG
combat/NN
aircraft/NN
is/VBZ
even/RB
tougher/JJR
./.
The/DT
Soviets/NNPS
insisted/VBD
that/DT
aircraft/NN
be/VB
brought/VBN
into/IN
the/DT
talks/NNS
,/,
then/RB
argued/VBD
for/IN
exempting/VBG
some/DT
4,000/CD
Russian/JJ
planes/NNS
because/IN
they/PRP
are/VBP
``/``
solely/RB
defensive/JJ
./.
''/''
NATO/NNP
has/VBZ
n't/RB
budged/VBN
from/IN
its/PRP$
insistence/NN
that/IN
any/DT
gun-carrying/JJ
plane/NN
has/VBZ
offensive/JJ
capability/NN
./.
The/DT
dispute/NN
over/IN
that/DT
issue/NN
,/,
according/VBG
to/TO
one/CD
U.S./NNP
official/NN
,/,
is/VBZ
a/DT
``/``
potential/JJ
treaty/NN
stopper/NN
,/,
''/''
and/CC
only/RB
President/NNP
Bush/NNP
and/CC
Soviet/JJ
leader/NN
Mikhail/NNP
Gorbachev/NNP
may/MD
be/VB
able/JJ
to/TO
resolve/VB
it/PRP
./.
Accounting/NN
problems/NNS
raise/VBP
more/JJR
knotty/JJ
issues/NNS
./.
Greece/NNP
and/CC
Turkey/NNP
,/,
for/IN
example/NN
,/,
are/VBP
suspected/VBN
of/IN
overstating/VBG
their/PRP$
arsenals/NNS
in/IN
hopes/NNS
that/IN
they/PRP
can/MD
emerge/VB
from/IN
the/DT
arms-reduction/JJ
treaty/NN
with/IN
large/JJ
remaining/VBG
forces/NNS
to/TO
deter/VB
each/DT
other/JJ
./.
Other/JJ
nations/NNS
are/VBP
n't/RB
sure/JJ
how/WRB
many/JJ
weapons/NNS
they/PRP
have/VBP
in/IN
their/PRP$
own/JJ
arsenals/NNS
./.
``/``
It/PRP
's/VBZ
just/RB
going/VBG
to/TO
be/VB
sloppy/JJ
,/,
both/DT
on/IN
our/PRP$
side/NN
and/CC
theirs/PRP
the/DT
Warsaw/NNP
Pact/NNP
's/POS
one/CD
NATO/NNP
analyst/NN
./.
So/RB
far/RB
,/,
neither/CC
the/DT
Bush/NNP
administration/NN
nor/CC
arms-control/JJ
experts/NNS
in/IN
Congress/NNP
seem/VBP
moved/VBN
by/IN
arguments/NNS
that/IN
these/DT
problems/NNS
may/MD
take/VB
more/JJR
time/NN
to/TO
thrash/VB
out/RB
than/IN
President/NNP
Bush/NNP
has/VBZ
allowed/VBN
./.
They/PRP
argue/VBP
that/IN
the/DT
bigger/JJR
danger/NN
would/MD
be/VB
that/IN
the/DT
West/NNP
would/MD
delay/VB
action/NN
so/RB
long/RB
that/IN
the/DT
Soviets/NNPS
might/MD
back/VB
away/RB
from/IN
the/DT
current/JJ
conciliatory/JJ
attitude/NN
./.
``/``
So/RB
what/WP
if/IN
you/PRP
miss/VBP
50/CD
tanks/NNS
somewhere/RB
?/.
''/''
asks/VBZ
Rep./NNP
Norman/NNP
Dicks/NNP
D./NNP
,/,
Wash./NNP
a/DT
member/NN
of/IN
the/DT
House/NNP
group/NN
that/WDT
visited/VBD
the/DT
talks/NNS
in/IN
Vienna/NNP
./.
``/``
The/DT
bottom/JJ
line/NN
is/VBZ
that/IN
if/IN
we/PRP
can/MD
get/VB
that/DT
Warsaw/NNP
Pact/NNP
superiority/NN
brought/VBD
down/RB
to/TO
parity/NN
,/,
we/PRP
ought/MD
to/TO
keep/VB
pressing/VBG
ahead/RB
as/RB
quickly/RB
as/IN
possible/JJ
./.
I/PRP
worry/VBP
more/RBR
about/IN
things/NNS
becoming/VBG
so/RB
unraveled/JJ
on/IN
the/DT
other/JJ
side/NN
that/IN
they/PRP
might/MD
become/VB
unable/JJ
to/TO
negotiate/VB
./.
''/''
International/NNP
Lease/NNP
Finance/NNP
Corp./NNP
announced/VBD
a/DT
leasing/NN
contract/NN
with/IN
charter/NN
carrier/NN
American/JJ
Trans/NNP
Air/NNP
Inc./NNP
,/,
in/IN
a/DT
transaction/NN
involving/VBG
six/CD
Boeing/NNP
Co./NNP
757-200s/NNS
./.
The/DT
value/NN
of/IN
the/DT
jets/NNS
,/,
including/VBG
spares/NNS
,/,
is/VBZ
in/IN
excess/NN
of/IN
$/$
250/CD
million/CD
./.
Two/CD
of/IN
the/DT
757-200s/NNS
are/VBP
new/JJ
aircraft/NNS
to/TO
be/VB
delivered/VBN
to/TO
American/NNP
Trans/NNP
Air/NNP
,/,
the/DT
main/JJ
subsidiary/NN
of/IN
Amtran/NNP
Inc./NNP
,/,
in/IN
December/NNP
1991/CD
and/CC
January/NNP
1992/CD
./.
Four/CD
of/IN
the/DT
planes/NNS
were/VBD
purchased/VBN
by/IN
International/NNP
Lease/NNP
from/IN
Singapore/NNP
Airlines/NNPS
in/IN
a/DT
previously/RB
announced/JJ
transaction/NN
./.
Delivery/NN
of/IN
the/DT
first/JJ
aircraft/NN
is/VBZ
set/VBN
for/IN
early/JJ
November/NNP
,/,
a/DT
second/NN
for/IN
December/NNP
and/CC
two/CD
for/IN
April/NNP
1990/CD
./.
Norway/NNP
's/POS
unemployment/NN
rate/NN
for/IN
October/NNP
was/VBD
3.6/CD
%/NN
,/,
unchanged/JJ
from/IN
September/NNP
but/CC
up/RB
from/IN
2.6/CD
%/NN
in/IN
the/DT
same/JJ
month/NN
last/JJ
year/NN
./.
The/DT
figure/NN
excludes/VBZ
a/DT
record/NN
number/NN
employed/VBN
by/IN
extraordinary/JJ
government/NN
work/NN
programs/NNS
,/,
the/DT
Labor/NNP
Directorate/NNP
announced/VBD
Tuesday/NNP
./.
Including/VBG
those/DT
in/IN
the/DT
state/NN
programs/NNS
,/,
there/EX
were/VBD
143,800/CD
Norwegians/NNPS
,/,
or/CC
about/IN
6.5/CD
%/NN
of/IN
the/DT
work/NN
force/NN
,/,
without/IN
permanent/JJ
employment/NN
in/IN
October/NNP
,/,
up/RB
from/IN
September/NNP
's/POS
136,800/CD
./.
The/DT
number/NN
of/IN
people/NNS
registered/VBN
as/IN
jobless/JJ
at/IN
the/DT
end/NN
of/IN
October/NNP
declined/VBD
by/IN
900/CD
from/IN
September/NNP
to/TO
78,600/CD
./.
Those/DT
employed/VBN
in/IN
state-funded/JJ
special/JJ
programs/NNS
increased/VBN
by/IN
7,400/CD
to/TO
65,200/CD
in/IN
the/DT
same/JJ
period/NN
,/,
the/DT
Directorate/NNP
said/VBD
./.
In/IN
October/NNP
1988/CD
,/,
there/EX
were/VBD
40,800/CD
fewer/JJR
employed/VBN
by/IN
government/NN
programs/NNS
./.
Coca-Cola/NNP
Co./NNP
,/,
aiming/VBG
to/TO
boost/VB
soft-drink/NN
volume/NN
in/IN
Singapore/NNP
,/,
said/VBD
it/PRP
is/VBZ
discussing/VBG
a/DT
joint/JJ
venture/NN
with/IN
Fraser/NNP
&/CC
Neave/NNP
Ltd./NNP
,/,
its/PRP$
bottling/VBG
franchisee/NN
in/IN
that/DT
country/NN
./.
The/DT
venture/NN
would/MD
be/VB
the/DT
latest/JJS
in/IN
Coke/NNP
's/POS
rapid/JJ
expansion/NN
of/IN
overseas/JJ
investment/NN
./.
So/RB
far/RB
this/DT
year/NN
,/,
it/PRP
has/VBZ
put/VBN
nearly/RB
$/$
700/CD
million/CD
into/IN
bottling/VBG
operations/NNS
in/IN
Australia/NNP
,/,
New/NNP
Zealand/NNP
and/CC
France/NNP
./.
The/DT
move/NN
also/RB
reflects/VBZ
Coke/NNP
's/POS
eagerness/NN
to/TO
have/VB
a/DT
hand/NN
in/IN
developing/VBG
the/DT
soft-drink/NN
markets/NNS
in/IN
Pacific/NNP
Basin/NNP
countries/NNS
./.
Aside/RB
from/IN
Europe/NNP
,/,
the/DT
Pacific/NNP
division/NN
is/VBZ
where/WRB
Coke/NNP
will/MD
be/VB
focusing/VBG
much/RB
of/IN
its/PRP$
attention/NN
for/IN
years/NNS
to/TO
come/VB
./.
That/DT
's/VBZ
because/IN
when/WRB
Coke/NNP
looks/VBZ
to/TO
the/DT
Pacific/NNP
area/NN
,/,
it/PRP
sees/VBZ
an/DT
economic/JJ
and/CC
demographic/JJ
gold/NN
mine/NN
./.
In/IN
countries/NNS
such/JJ
as/IN
Taiwan/NNP
,/,
South/NNP
Korea/NNP
and/CC
Singapore/NNP
,/,
economies/NNS
are/VBP
growing/VBG
,/,
resulting/VBG
in/IN
a/DT
rise/NN
in/IN
disposable/JJ
income/NN
that/IN
consumers/NNS
can/MD
use/VB
for/IN
soft/JJ
drinks/NNS
./.
And/CC
unlike/IN
Europe/NNP
and/CC
the/DT
U.S./NNP
,/,
where/WRB
populations/NNS
are/VBP
aging/VBG
,/,
the/DT
Pacific/NNP
Basin/NNP
countries/NNS
have/VBP
growing/VBG
proportions/NNS
of/IN
youths/NNS
--/:
the/DT
heaviest/JJS
consumers/NNS
of/IN
Coca-Cola/NNP
and/CC
other/JJ
sodas/NNS
./.
A/DT
Coca-Cola/NNP
spokesman/NN
said/VBD
it/PRP
is/VBZ
too/RB
early/JJ
to/TO
say/VB
how/WRB
the/DT
joint/JJ
venture/NN
would/MD
be/VB
structured/VBN
,/,
or/CC
how/WRB
much/JJ
the/DT
company/NN
would/MD
invest/VB
in/IN
the/DT
transaction/NN
./.
In/IN
the/DT
past/NN
,/,
however/RB
,/,
Coke/NNP
has/VBZ
typically/RB
taken/VBN
a/DT
minority/NN
stake/NN
in/IN
such/JJ
ventures/NNS
./.
By/IN
acquiring/VBG
stakes/NNS
companies/NNS
in/IN
the/DT
U.S./NNP
and/CC
overseas/RB
,/,
Coke/NNP
has/VBZ
been/VBN
able/JJ
to/TO
improve/VB
bottlers/NNS
'/POS
efficiency/NN
and/CC
production/NN
,/,
and/CC
in/IN
some/DT
cases/NNS
,/,
marketing/NN
./.
Coke/NNP
has/VBZ
tended/VBN
to/TO
increase/VB
its/PRP$
control/NN
when/WRB
results/NNS
were/VBD
sluggish/JJ
in/IN
a/DT
given/VBN
country/NN
./.
That/IN
does/VBZ
n't/RB
appear/VB
to/TO
be/VB
the/DT
case/NN
in/IN
Singapore/NNP
,/,
a/DT
country/NN
of/IN
about/IN
three/CD
million/CD
people/NNS
with/IN
a/DT
relatively/RB
high/JJ
soft-drink/NN
consumption/NN
rate/NN
--/:
a/DT
key/JJ
indicator/NN
of/IN
Coke/NNP
's/POS
success/NN
in/IN
a/DT
market/NN
./.
In/IN
Singapore/NNP
,/,
per-capita/JJ
consumption/NN
is/VBZ
about/IN
one-third/NN
that/IN
of/IN
the/DT
U.S/NNP
./.
And/CC
combining/VBG
Fraser/NNP
&/CC
Neave/NNP
's/POS
own/JJ
soft/JJ
drinks/NNS
with/IN
Coca-Cola/NNP
's/POS
gives/VBZ
the/DT
Singapore/NNP
company/NN
more/JJR
than/IN
half/PDT
the/DT
share/NN
of/IN
the/DT
soda/NN
market/NN
there/RB
,/,
Coke/NNP
said/VBD
./.
Fraser/NNP
&/CC
Neave/NNP
,/,
which/WDT
also/RB
has/VBZ
interests/NNS
in/IN
packaging/NN
,/,
beer/NN
and/CC
dairy/NN
products/NNS
,/,
holds/VBZ
the/DT
Coke/NNP
licenses/NNS
for/IN
Malaysia/NNP
and/CC
Brunei/NNP
,/,
where/WRB
per-capita/JJ
consumption/NN
is/VBZ
n't/RB
as/RB
high/JJ
as/IN
in/IN
Singapore/NNP
./.
Coke/NNP
could/MD
be/VB
interested/JJ
in/IN
more/RBR
quickly/RB
developing/VBG
some/DT
of/IN
the/DT
untapped/JJ
potential/NN
in/IN
those/DT
markets/NNS
./.
A/DT
Coke/NNP
spokesman/NN
said/VBD
he/PRP
could/MD
n't/RB
say/VB
whether/IN
that/DT
is/VBZ
the/DT
direction/NN
of/IN
the/DT
talks/NNS
./.
Coke/NN
said/VBD
the/DT
joint-venture/NN
arrangement/NN
,/,
which/WDT
needs/VBZ
approval/NN
from/IN
both/DT
companies/NNS
'/POS
boards/NNS
,/,
should/MD
be/VB
completed/VBN
early/JJ
next/JJ
year/NN
./.
AMERICAN/NNP
BRANDS/NNPS
Inc./NNP
,/,
Old/NNP
Greenwich/NNP
,/,
Conn./NNP
,/,
said/VBD
it/PRP
increased/VBD
its/PRP$
quarterly/JJ
11/CD
%/NN
to/TO
68/CD
cents/NNS
a/DT
share/NN
from/IN
61/CD
cents/NNS
,/,
payable/JJ
Dec./NNP
1/CD
to/TO
stock/NN
of/IN
record/NN
Nov./NNP
10/CD
./.
The/DT
increase/NN
follows/VBZ
the/DT
company/NN
's/POS
report/NN
of/IN
strong/JJ
earnings/NNS
for/IN
the/DT
third/JJ
quarter/NN
,/,
and/CC
reflects/VBZ
what/WP
American/NNP
Brands/NNPS
called/VBD
its/PRP$
``/``
tradition/NN
of/IN
sharing/VBG
earnings/NNS
growth/NN
''/''
with/IN
shareholders/NNS
./.
American/NNP
Brands/NNPS
is/VBZ
a/DT
consumer/NN
products/NNS
company/NN
with/IN
core/NN
businesses/NNS
in/IN
tobacco/NN
,/,
distilled/JJ
spirits/NNS
and/CC
life/NN
insurance/NN
./.
As/IN
of/IN
Sept./NNP
30/CD
,/,
American/NNP
Brands/NNPS
had/VBD
95.2/CD
million/CD
shares/NNS
outstanding/JJ
./.
Giovanni/NNP
Agnelli/NNP
&/CC
Co./NNP
announced/VBD
a/DT
transaction/NN
that/WDT
will/MD
strengthen/VB
its/PRP$
indirect/JJ
control/NN
of/IN
Fiat/NNP
S.p/NNP
./.
A./NNP
and/CC
will/MD
admit/VB
Prince/NNP
Karim/NNP
Aga/NNP
Khan/NNP
as/IN
its/PRP$
first/JJ
non-family/JJ
shareholder/NN
./.
Giovanni/NNP
Agnelli/NNP
,/,
a/DT
limited/JJ
partnership/NN
that/WDT
is/VBZ
the/DT
master/NN
holding/VBG
company/NN
for/IN
Fiat/NNP
's/POS
Agnelli/NNP
family/NN
,/,
owns/VBZ
approximately/RB
75/CD
%/NN
of/IN
the/DT
shares/NNS
in/IN
Istituto/NNP
Finanziario/NNP
Industriale/NNP
,/,
which/WDT
in/IN
turn/NN
owns/VBZ
approximately/RB
40/CD
%/NN
of/IN
Fiat/NNP
,/,
Italy/NNP
's/POS
biggest/JJS
private-sector/NN
industrial/JJ
group/NN
./.
The/DT
company/NN
said/VBD
Maria/NNP
Sole/NNP
Agnelli/NNP
Teodorani/NNP
,/,
sister/NN
of/IN
Fiat/NNP
Chairman/NNP
Giovanni/NNP
Agnelli/NNP
,/,
agreed/VBD
to/TO
trade/VB
her/PRP$
shares/NNS
in/IN
IFI/NNP
for/IN
new/JJ
ordinary/JJ
shares/NNS
in/IN
the/DT
limited/JJ
partnership/NN
,/,
which/WDT
will/MD
give/VB
her/PRP$
control/NN
of/IN
4.67/CD
%/NN
of/IN
Giovanni/NNP
Agnelli/NNP
&/CC
Co/NNP
./.
The/DT
Aga/NNP
Khan/NNP
,/,
meanwhile/RB
,/,
agreed/VBD
to/TO
trade/VB
some/DT
of/IN
his/PRP$
stake/NN
in/IN
Luxembourg-based/JJ
Ifint/NNP
S.A./NNP
,/,
another/DT
Agnelli/NNP
family/NN
company/NN
,/,
for/IN
7.45/CD
%/NN
of/IN
Giovanni/NNP
Agnelli/NNP
&/CC
Co./NNP
's/POS
capital/NN
./.
His/PRP$
new/JJ
stake/NN
would/MD
be/VB
in/IN
the/DT
form/NN
of/IN
preferred/JJ
shares/NNS
,/,
which/WDT
receive/VBP
higher/JJR
dividends/NNS
but/CC
have/VBP
voting/VBG
rights/NNS
only/RB
in/IN
extraordinary/JJ
shareholders/NNS
assemblies/NNS
./.
The/DT
Aga/NNP
Khan/NNP
owns/VBZ
10/CD
%/NN
of/IN
Ifint/NNP
's/POS
capital/NN
,/,
while/IN
IFI/NNP
owns/VBZ
23/CD
%/NN
./.
As/IN
a/DT
result/NN
of/IN
the/DT
transaction/NN
,/,
which/WDT
is/VBZ
expected/VBN
to/TO
be/VB
approved/VBN
at/IN
a/DT
shareholders/NNS
meeting/NN
Nov./NNP
24/CD
,/,
Giovanni/NNP
Agnelli/NNP
&/CC
Co./NNP
will/MD
control/VB
79.18/CD
%/NN
of/IN
IFI/NNP
's/POS
ordinary/JJ
shares/NNS
./.
Its/PRP$
capital/NN
will/MD
also/RB
be/VB
raised/VBN
to/TO
232.4/CD
billion/CD
lire/NNS
$/$
172.5/CD
million/CD
the/DT
current/JJ
204.3/CD
billion/CD
lire/NNS
./.
IFI/NNP
also/RB
has/VBZ
nonvoting/JJ
preferred/JJ
shares/NNS
,/,
which/WDT
are/VBP
quoted/VBN
on/IN
the/DT
Milan/NNP
stock/NN
exchange/NN
./.
The/DT
value/NN
of/IN
the/DT
two/CD
transactions/NNS
was/VBD
n't/RB
disclosed/VBN
,/,
but/CC
an/DT
IFI/NNP
spokesman/NN
said/VBD
no/DT
cash/NN
would/MD
change/VB
hands/NNS
./.
The/DT
move/NN
strengthens/VBZ
the/DT
existing/VBG
links/NNS
between/IN
the/DT
Agnellis/NNPS
and/CC
the/DT
Aga/NNP
Khan/NNP
,/,
the/DT
head/NN
of/IN
the/DT
world/NN
's/POS
Ismaili/NNP
Moslems/NNPS
who/WP
is/VBZ
a/DT
longtime/JJ
family/NN
friend/NN
and/CC
frequently/RB
goes/VBZ
sailing/NN
with/IN
Mr./NNP
Agnelli/NNP
./.
Mr./NNP
Agnelli/NNP
and/CC
the/DT
Aga/NNP
Khan/NNP
also/RB
have/VBP
some/DT
business/NN
ties/NNS
,/,
and/CC
a/DT
spokesman/NN
for/IN
the/DT
Agnelli/NNP
company/NN
did/VBD
n't/RB
rule/VB
out/RB
that/IN
the/DT
current/JJ
agreement/NN
could/MD
lead/VB
to/TO
further/JJ
collaboration/NN
./.
For/IN
instance/NN
,/,
Ifint/NNP
earlier/RBR
this/DT
year/NN
bought/VBD
an/DT
18/CD
%/NN
stake/NN
in/IN
Alisarda/NNP
,/,
the/DT
Aga/NNP
Khan/NNP
's/POS
airline/NN
,/,
which/WDT
flies/VBZ
between/IN
Italy/NNP
and/CC
Sardinia/NNP
./.
Giovanni/NNP
Agnelli/NNP
&/CC
Co./NNP
,/,
which/WDT
was/VBD
formed/VBN
in/IN
January/NNP
1987/CD
as/IN
a/DT
way/NN
of/IN
keeping/VBG
the/DT
Agnellis/NNPS
'/POS
controlling/VBG
stake/NN
in/IN
Fiat/NNP
together/RB
despite/IN
an/DT
ever-growing/JJ
family/NN
tree/NN
,/,
has/VBZ
been/VBN
playing/VBG
a/DT
more/RBR
active/JJ
role/NN
in/IN
the/DT
Agnelli/NNP
group/NN
of/IN
late/RB
./.
It/PRP
raised/VBD
financing/NN
of/IN
300/CD
billion/CD
lire/NNS
for/IN
the/DT
purchase/NN
this/DT
summer/NN
by/IN
another/DT
Agnelli-related/JJ
group/NN
of/IN
the/DT
food/NN
concern/NN
Galbani/NNP
S.p/NNP
./.
A./NNP
,/,
by/IN
selling/VBG
a/DT
chunk/NN
of/IN
its/PRP$
IFI/NNP
shares/NNS
to/TO
Mediobanca/NNP
S.p/NNP
./.
A./NNP
Mediobanca/NNP
said/VBD
during/IN
the/DT
weekend/NN
that/IN
it/PRP
agreed/VBD
to/TO
sell/VB
the/DT
shares/NNS
back/RP
to/TO
Giovanni/NNP
Agnelli/NNP
for/IN
333/CD
billion/CD
lire/NNS
./.
Your/PRP$
Oct./NNP
2/CD
page-one/JJ
article/NN
on/IN
people/NNS
riding/VBG
so-called/JJ
``/``
railbikes/NNS
''/''
on/IN
railroad/NN
tracks/NNS
was/VBD
a/DT
disservice/NN
to/TO
your/PRP$
readers/NNS
./.
It/PRP
unfortunately/RB
encourages/VBZ
others/NNS
to/TO
engage/VB
in/IN
a/DT
highly/RB
dangerous/JJ
and/CC
illegal/JJ
activity/NN
that/IN
only/RB
a/DT
very/RB
few/JJ
are/VBP
doing/VBG
now/RB
./.
And/CC
it/PRP
treats/VBZ
such/JJ
activities/NNS
in/IN
a/DT
frivolous/JJ
,/,
cavalier/JJ
fashion/NN
,/,
with/IN
total/JJ
indifference/NN
to/TO
common/JJ
sense/NN
and/CC
public/JJ
safety/NN
./.
Saul/NNP
Resnick/NNP
Vice/NNP
President/NNP
Public/NNP
Affairs/NNPS
Conrail/NNP
Philadelphia/NNP
MCI/NNP
Communications/NNPS
Corp./NNP
said/VBD
it/PRP
received/VBD
a/DT
three-year/JJ
contract/NN
valued/VBN
at/IN
more/JJR
than/IN
$/$
15/CD
million/CD
to/TO
provide/VB
network/NN
,/,
credit-card/NN
and/CC
other/JJ
telecommunications/NN
services/NNS
to/TO
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc/NNP
./.
Congressional/JJ
Democrats/NNPS
and/CC
the/DT
Bush/NNP
administration/NN
agreed/VBD
on/IN
a/DT
compromise/NN
minimum-wage/NN
bill/NN
,/,
opening/VBG
the/DT
way/NN
for/IN
the/DT
first/JJ
wage-floor/JJ
boost/NN
in/IN
more/JJR
than/IN
nine/CD
years/NNS
./.
The/DT
agreement/NN
ended/VBD
a/DT
long/JJ
impasse/NN
between/IN
the/DT
congressional/JJ
leaders/NNS
and/CC
the/DT
White/NNP
House/NNP
over/IN
the/DT
wage/NN
issue/NN
./.
President/NNP
Bush/NNP
in/IN
June/NNP
vetoed/VBD
a/DT
measure/NN
passed/VBN
by/IN
Congress/NNP
and/CC
said/VBD
he/PRP
would/MD
n't/RB
accept/VB
any/DT
minimum-wage/NN
rise/NN
that/WDT
went/VBD
beyond/IN
limits/NNS
he/PRP
set/VBD
early/RB
in/IN
this/DT
year/NN
's/POS
debate/NN
on/IN
the/DT
issue/NN
./.
The/DT
compromise/NN
was/VBD
a/DT
somewhat/RB
softened/JJ
version/NN
of/IN
what/WP
the/DT
White/NNP
House/NNP
had/VBD
said/VBN
it/PRP
would/MD
accept/VB
./.
Under/IN
the/DT
agreement/NN
with/IN
the/DT
House/NNP
and/CC
Senate/NNP
leaders/NNS
,/,
the/DT
minimum/NN
wage/NN
would/MD
rise/VB
from/IN
the/DT
current/JJ
$/$
3.35/CD
an/DT
hour/NN
to/TO
$/$
4.25/CD
an/DT
hour/NN
by/IN
April/NNP
1991/CD
./.
Employers/NNS
could/MD
also/RB
pay/VB
a/DT
subminimum/JJ
``/``
training/NN
wage/NN
''/''
for/IN
90/CD
days/NNS
to/TO
new/JJ
workers/NNS
who/WP
are/VBP
up/RB
to/TO
19/CD
years/NNS
old/JJ
,/,
and/CC
then/RB
for/IN
another/DT
90/CD
days/NNS
if/IN
the/DT
company/NN
institutes/NN
a/DT
specific/JJ
training/VBG
program/NN
for/IN
the/DT
newcomers/NNS
./.
White/NNP
House/NNP
officials/NNS
were/VBD
delighted/JJ
that/IN
the/DT
compromise/NN
includes/VBZ
the/DT
concept/NN
of/IN
a/DT
training/NN
wage/NN
,/,
which/WDT
Mr./NNP
Bush/NNP
has/VBZ
fought/VBN
for/IN
throughout/IN
the/DT
year/NN
./.
``/``
For/IN
the/DT
first/JJ
time/NN
in/IN
history/NN
,/,
we/PRP
have/VBP
a/DT
training/NN
wage/NN
that/WDT
will/MD
be/VB
part/NN
''/''
of/IN
the/DT
nation/NN
's/POS
labor/NN
laws/NNS
,/,
said/VBD
Roger/NNP
Porter/NNP
,/,
assistant/NN
to/TO
the/DT
president/NN
for/IN
economic/JJ
and/CC
domestic/JJ
policy/NN
./.
White/NNP
House/NNP
aides/NNS
said/VBD
that/IN
although/IN
they/PRP
made/VBD
a/DT
small/JJ
compromise/NN
on/IN
the/DT
length/NN
of/IN
a/DT
training/NN
wage/NN
,/,
the/DT
final/JJ
minimum-wage/NN
increase/NN
will/MD
meet/VB
the/DT
standards/NNS
set/VBN
by/IN
Mr./NNP
Bush/NNP
./.
The/DT
bill/NN
vetoed/VBN
by/IN
the/DT
president/NN
in/IN
June/NNP
,/,
which/WDT
the/DT
House/NNP
failed/VBD
to/TO
override/VB
,/,
would/MD
have/VB
lifted/VBN
the/DT
minimum/NN
wage/NN
to/TO
$/$
4.55/CD
an/DT
hour/NN
by/IN
late/JJ
1991/CD
,/,
with/IN
a/DT
training/NN
wage/NN
for/IN
up/RB
to/TO
two/CD
months/NNS
,/,
generally/RB
for/IN
a/DT
worker/NN
's/POS
first/JJ
job/NN
./.
Mr./NNP
Bush/NNP
had/VBD
been/VBN
holding/VBG
out/RB
for/IN
a/DT
bill/NN
boosting/VBG
the/DT
wage/NN
floor/NN
to/TO
$/$
4.25/CD
an/DT
hour/NN
by/IN
the/DT
end/NN
of/IN
1991/CD
,/,
coupled/VBN
with/IN
a/DT
six-month/JJ
training/NN
wage/NN
for/IN
workers/NNS
newly/RB
hired/VBN
by/IN
any/DT
employer/NN
./.
Under/IN
the/DT
compromise/NN
,/,
the/DT
$/$
4.25/CD
level/NN
would/MD
be/VB
reached/VBN
nine/CD
months/NNS
earlier/RB
,/,
while/IN
the/DT
training/NN
subminimum/JJ
would/MD
be/VB
shorter/JJR
,/,
unless/IN
it/PRP
is/VBZ
tied/VBN
to/TO
a/DT
training/NN
plan/NN
./.
Democrats/NNP
argued/VBD
that/IN
the/DT
training/NN
wage/NN
was/VBD
a/DT
way/NN
of/IN
allowing/VBG
employers/NNS
to/TO
pay/VB
less/JJR
than/IN
the/DT
minimum/NN
wage/NN
,/,
while/IN
new/JJ
workers/NNS
need/VBP
far/RB
less/JJR
than/IN
six/CD
months/NNS
to/TO
be/VB
trained/VBN
for/IN
their/PRP$
jobs/NNS
./.
Democrats/NNPS
had/VBD
been/VBN
negotiating/VBG
with/IN
some/DT
Republican/JJ
congressional/JJ
leaders/NNS
on/IN
a/DT
compromise/NN
lately/RB
./.
With/IN
congressional/JJ
elections/NNS
next/IN
year/NN
,/,
GOP/NNP
leaders/NNS
have/VBP
worried/VBN
about/IN
opposing/VBG
a/DT
minimum-wage/NN
rise/NN
for/IN
low-paid/JJ
workers/NNS
at/IN
a/DT
time/NN
when/WRB
Congress/NNP
is/VBZ
moving/VBG
toward/IN
a/DT
capital-gains/NNS
tax/NN
cut/NN
that/WDT
would/MD
directly/RB
benefit/VB
wealthier/JJR
taxpayers/NNS
./.
Republicans/NNPS
have/VBP
been/VBN
imploring/VBG
the/DT
White/NNP
House/NNP
to/TO
compromise/VB
on/IN
the/DT
wage/NN
issue/NN
./.
In/IN
the/DT
Senate/NNP
,/,
Edward/NNP
Kennedy/NNP
D./NNP
,/,
Mass./NNP
chairman/NN
of/IN
the/DT
Labor/NNP
Committee/NNP
,/,
and/CC
Pete/NNP
Domenici/NNP
,/,
(/(
R./NNP
,/,
N.M/NNP
./.
ranking/VBG
minority/NN
member/NN
of/IN
the/DT
Budget/NNP
Committee/NNP
,/,
have/VBP
been/VBN
working/VBG
on/IN
a/DT
compromise/NN
,/,
and/CC
their/PRP$
soundings/NNS
showed/VBD
that/IN
the/DT
Senate/NNP
appeared/VBD
to/TO
be/VB
heading/VBG
toward/IN
enough/JJ
strength/NN
to/TO
override/VB
another/DT
Bush/NNP
veto/NN
,/,
a/DT
Democratic/JJ
staff/NN
official/NN
said/VBD
./.
The/DT
House/NNP
is/VBZ
scheduled/VBN
to/TO
vote/VB
this/DT
week/NN
on/IN
the/DT
compromise/NN
,/,
as/IN
a/DT
substitute/NN
to/TO
a/DT
new/JJ
Democratic/JJ
bill/NN
,/,
itself/PRP
watered/VBD
down/RB
from/IN
last/JJ
spring/NN
's/POS
version/NN
./.
The/DT
Senate/NNP
will/MD
probably/RB
vote/VB
not/RB
long/RB
afterward/RB
./.
Some/DT
Democrats/NNPS
thought/VBD
they/PRP
might/MD
have/VB
compromised/VBN
too/RB
much/RB
./.
Rep./NNP
Austin/NNP
Murphy/NNP
D./NNP
,/,
Pa./NNP
chairman/NN
of/IN
the/DT
House/NNP
labor/NN
standards/NNS
subcommittee/NN
,/,
said/VBD
they/PRP
might/MD
have/VB
done/VBN
better/RBR
``/``
if/IN
we/PRP
'd/VBD
held/VBN
their/PRP$
feet/NNS
to/TO
the/DT
fire/NN
./.
''/''
Mr./NNP
Kennedy/NNP
suggested/VBD
Democrats/NNPS
``/``
yielded/VBD
a/DT
great/JJ
deal/NN
''/''
on/IN
the/DT
size/NN
of/IN
the/DT
increase/NN
,/,
but/CC
he/PRP
cited/VBD
concessions/NNS
from/IN
the/DT
White/NNP
House/NNP
on/IN
the/DT
training/NN
wage/NN
,/,
which/WDT
he/PRP
said/VBD
make/VB
it/PRP
``/``
less/RBR
harsh/JJ
./.
''/''
With/IN
only/RB
16-year-olds/NNS
to/TO
19-year-olds/NNS
eligible/JJ
,/,
68/CD
%/NN
of/IN
workers/NNS
getting/VBG
less/JJR
than/IN
$/$
4.25/CD
an/DT
hour/NN
,/,
who/WP
are/VBP
adults/NNS
,/,
wo/MD
n't/RB
be/VB
subject/JJ
to/TO
the/DT
training/NN
wage/NN
,/,
he/PRP
said/VBD
./.
The/DT
AFL-CIO/NNP
,/,
which/WDT
previously/RB
opposed/VBD
the/DT
administration/NN
's/POS
subminimum/JJ
idea/NN
,/,
said/VBD
the/DT
compromise/NN
has/VBZ
``/``
adequate/JJ
safeguards/NNS
,/,
so/IN
the/DT
youth/NN
are/VBP
not/RB
exploited/VBN
and/CC
older/JJR
workers/NNS
are/VBP
not/RB
displaced/VBN
./.
''/''
Gerald/NNP
F./NNP
Seib/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Moody/NNP
's/POS
Investors/NNPS
Service/NNP
Inc./NNP
said/VBD
it/PRP
lowered/VBD
the/DT
ratings/NNS
on/IN
about/IN
$/$
3.2/CD
billion/CD
of/IN
Houston/NNP
Lighting/NNP
&/CC
Power/NNP
Co./NNP
's/POS
securities/NNS
because/IN
of/IN
the/DT
company/NN
's/POS
low/JJ
levels/NNS
of/IN
interest/NN
coverage/NN
and/CC
internal/JJ
cash/NN
generation/NN
./.
Houston/NNP
Lighting/NNP
is/VBZ
a/DT
unit/NN
of/IN
Houston/NNP
Industries/NNPS
Inc./NNP
,/,
a/DT
utility/NN
holding/VBG
company/NN
in/IN
Houston/NNP
./.
Downgraded/VBN
by/IN
Moody/NNP
's/POS
were/VBD
Houston/NNP
Lighting/NNP
's/POS
first-mortgage/JJ
bonds/NNS
and/CC
secured/JJ
pollution-control/JJ
bonds/NNS
to/TO
single-A-3/JJ
from/IN
single-A-2/JJ
;/:
unsecured/JJ
pollution-control/NN
bonds/NNS
to/TO
Baa-1/JJ
from/IN
single-A-3/JJ
;/:
preferred/JJ
stock/NN
to/TO
single-A-3/JJ
from/IN
single-A-2/JJ
;/:
a/DT
shelf/NN
registration/NN
for/IN
preferred/JJ
stock/NN
to/TO
a/DT
preliminary/JJ
rating/NN
of/IN
single-A-3/JJ
from/IN
a/DT
preliminary/JJ
rating/NN
of/IN
single-A-2/JJ
;/:
two/CD
shelf/NN
registrations/NNS
for/IN
collateralized/JJ
debt/NN
securities/NNS
to/TO
a/DT
preliminary/JJ
rating/NN
of/IN
single-A-3/JJ
from/IN
a/DT
preliminary/JJ
rating/NN
of/IN
single-A-2/JJ
,/,
and/CC
the/DT
unit/NN
's/POS
rating/NN
for/IN
commercial/JJ
paper/NN
to/TO
Prime-2/JJ
from/IN
Prime-1/JJ
./.
Moody/NNP
's/POS
said/VBD
Houston/NNP
Lighting/NNP
's/POS
current/JJ
situation/NN
has/VBZ
some/DT
positive/JJ
aspects/NNS
,/,
including/VBG
managing/VBG
``/``
very/RB
well/RB
''/''
the/DT
construction/NN
and/CC
commercial/JJ
operation/NN
risks/NNS
of/IN
Units/NNS
1/CD
and/CC
2/CD
of/IN
the/DT
South/NNP
Texas/NNP
Project/NNP
nuclear/JJ
power/NN
plant/NN
./.
Capital/NN
requirements/NNS
will/MD
be/VB
declining/VBG
and/CC
no/DT
new/JJ
generating/VBG
facilities/NNS
will/MD
be/VB
required/VBN
for/IN
several/JJ
years/NNS
,/,
Moody/NNP
's/POS
said/VBD
./.
Scott/NNP
C./NNP
Smith/NNP
,/,
formerly/RB
vice/NN
president/NN
,/,
finance/NN
,/,
and/CC
chief/JJ
financial/JJ
officer/NN
of/IN
this/DT
media/NNS
concern/NN
,/,
was/VBD
named/VBN
senior/JJ
vice/NN
president/NN
./.
Mr./NNP
Smith/NNP
,/,
39/CD
,/,
retains/VBZ
the/DT
title/NN
of/IN
chief/JJ
financial/JJ
officer/NN
./.
Armstrong/NNP
World/NNP
Industries/NNPS
Inc./NNP
agreed/VBD
in/IN
principle/NN
to/TO
sell/VB
its/PRP$
carpet/NN
operations/NNS
to/TO
Shaw/NNP
Industries/NNPS
Inc/NNP
./.
The/DT
price/NN
was/VBD
n't/RB
disclosed/VBN
but/IN
one/CD
analyst/NN
estimated/VBD
that/IN
it/PRP
was/VBD
$/$
150/CD
million/CD
./.
Armstrong/NNP
,/,
which/WDT
has/VBZ
faced/VBN
a/DT
takeover/NN
threat/NN
from/IN
the/DT
Belzberg/NNP
family/NN
of/IN
Canada/NNP
since/IN
July/NNP
,/,
said/VBD
that/IN
disposing/VBG
of/IN
the/DT
carpet/NN
business/NN
would/MD
improve/VB
``/``
total/JJ
financial/JJ
performance/NN
./.
''/''
The/DT
move/NN
also/RB
would/MD
allow/VB
the/DT
company/NN
to/TO
concentrate/VB
on/IN
core/JJ
businesses/NNS
,/,
which/WDT
include/VBP
ceramic/JJ
tile/NN
,/,
floor/NN
coverings/NNS
and/CC
furniture/NN
./.
Moreover/JJR
,/,
such/PDT
a/DT
sale/NN
could/MD
help/VB
Armstrong/NNP
reassure/VB
its/PRP$
investors/NNS
and/CC
deter/VB
the/DT
Belzbergs/NNPS
,/,
who/WP
own/VBP
a/DT
9.85/CD
%/NN
stake/NN
in/IN
the/DT
Lancaster/NNP
,/,
Pa./NNP
,/,
company/NN
./.
Analysts/NNS
expect/VBP
Armstrong/NNP
to/TO
use/VB
proceeds/NNS
of/IN
the/DT
sale/NN
to/TO
reduce/VB
debt/NN
,/,
buy/VB
back/RB
stock/NN
or/CC
perhaps/RB
finance/VB
an/DT
acquisition/NN
./.
The/DT
carpet/NN
division/NN
had/VBD
1988/CD
sales/NNS
of/IN
$/$
368.3/CD
million/CD
,/,
or/CC
almost/RB
14/CD
%/NN
of/IN
Armstrong/NNP
's/POS
$/$
2.68/CD
billion/CD
total/NN
revenue/NN
./.
The/DT
company/NN
has/VBZ
been/VBN
manufacturing/VBG
carpet/NN
since/IN
1967/CD
./.
Recently/RB
it/PRP
upgraded/VBD
its/PRP$
plants/NNS
so/IN
that/IN
it/PRP
could/MD
make/VB
stain-resistant/JJ
products/NNS
with/IN
higher/JJR
quality/JJ|NN
dyes/NNS
./.
For/IN
the/DT
past/JJ
year/NN
or/CC
two/CD
,/,
the/DT
carpet/NN
division/NN
's/POS
operating/NN
profit/NN
margins/NNS
have/VBP
hovered/VBN
around/IN
5/CD
%/NN
,/,
high/JJ
by/IN
industry/NN
standards/NNS
,/,
but/CC
disappointing/JJ
compared/VBN
with/IN
the/DT
13/CD
%/NN
to/TO
19/CD
%/NN
margins/NNS
for/IN
two/CD
of/IN
Armstrong/NNP
's/POS
chief/JJ
businesses/NNS
,/,
flooring/NN
and/CC
building/NN
products/NNS
./.
Analysts/NNS
hailed/VBD
the/DT
planned/JJ
transaction/NN
as/IN
being/VBG
beneficial/JJ
to/TO
Armstrong/NNP
and/CC
Shaw/NNP
,/,
the/DT
market/NN
leader/NN
in/IN
the/DT
U.S./NNP
carpet/NN
industry/NN
,/,
with/IN
an/DT
estimated/VBN
17/CD
%/NN
to/TO
20/CD
%/NN
share/NN
./.
Shaw/NNP
,/,
based/VBN
in/IN
Dalton/NNP
,/,
Ga./NNP
,/,
has/VBZ
annual/JJ
sales/NNS
of/IN
about/IN
$/$
1.18/CD
billion/CD
,/,
and/CC
has/VBZ
economies/NNS
of/IN
scale/NN
and/CC
lower/JJR
raw-material/NN
costs/NNS
that/WDT
are/VBP
expected/JJ
to/TO
boost/VB
the/DT
profitability/NN
of/IN
Armstrong/NNP
's/POS
brands/NNS
,/,
sold/VBN
under/IN
the/DT
Armstrong/NNP
and/CC
Evans-Black/NNP
names/NNS
./.
Yesterday/NN
,/,
in/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Shaw/NNP
's/POS
shares/NNS
closed/VBD
ex-dividend/NN
at/IN
$/$
26.125/CD
,/,
up/RB
$/$
2.25/CD
./.
Armstrong/NNP
's/POS
shares/NNS
,/,
also/RB
listed/VBN
on/IN
the/DT
Big/NNP
Board/NNP
,/,
closed/VBD
at/IN
$/$
39.125/CD
,/,
up/RB
12.5/CD
cents/NNS
./.
Yesterday/NN
,/,
Armstrong/NNP
reported/VBD
flat/JJ
earnings/NNS
for/IN
the/DT
third/JJ
quarter/NN
and/CC
nine/CD
months/NNS
,/,
worsened/VBN
by/IN
the/DT
stock/NN
dilution/NN
of/IN
an/DT
employee/NN
stock/NN
ownership/NN
plan/NN
adopted/VBN
earlier/RBR
this/DT
year/NN
./.
For/IN
the/DT
quarter/NN
,/,
earnings/NNS
were/VBD
$/$
47/CD
million/CD
,/,
or/CC
92/CD
cents/NNS
a/DT
share/NN
,/,
including/VBG
a/DT
one-time/JJ
gain/NN
of/IN
$/$
5.9/CD
million/CD
./.
In/IN
the/DT
year-ago/JJ
quarter/NN
,/,
earnings/NNS
were/VBD
$/$
42.9/CD
million/CD
,/,
or/CC
93/CD
cents/NNS
a/DT
share/NN
./.
Yesterday/NN
,/,
Armstrong/NNP
announced/VBD
an/DT
agreement/NN
to/TO
sell/VB
its/PRP$
small/JJ
Applied/NNP
Color/NNP
Systems/NNPS
unit/NN
to/TO
a/DT
subsidiary/NN
of/IN
the/DT
Swiss/JJ
company/NN
,/,
Brauerei/NNP
Eichof/NNP
Ltd/NNP
./.
The/DT
price/NN
was/VBD
n't/RB
disclosed/VBN
./.
Armstrong/NNP
expects/VBZ
to/TO
close/VB
the/DT
sale/NN
of/IN
the/DT
color/NN
unit/NN
in/IN
late/JJ
November/NNP
and/CC
the/DT
carpet/NN
sale/NN
in/IN
December/NNP
,/,
with/IN
the/DT
gains/NNS
to/TO
be/VB
applied/VBN
to/TO
fourth/JJ
quarter/NN
or/CC
first-quarter/JJ
results/NNS
./.
The/DT
government/NN
's/POS
primary/JJ
economic-forecasting/JJ
gauge/NN
rose/VBD
a/DT
slight/JJ
0.2/CD
%/NN
in/IN
September/NNP
,/,
but/CC
economists/NNS
said/VBD
the/DT
report/NN
offered/VBD
little/JJ
new/JJ
information/NN
on/IN
the/DT
degree/NN
to/TO
which/WDT
the/DT
U.S./NNP
economy/NN
is/VBZ
slowing/VBG
./.
The/DT
small/JJ
increase/NN
in/IN
the/DT
index/NN
of/IN
leading/VBG
indicators/NNS
,/,
which/WDT
had/VBD
climbed/VBN
0.5/CD
%/NN
in/IN
August/NNP
but/CC
was/VBD
unchanged/JJ
in/IN
July/NNP
,/,
does/VBZ
lend/VB
support/NN
to/TO
the/DT
view/NN
that/IN
the/DT
economy/NN
has/VBZ
slowed/VBN
noticeably/RB
./.
However/RB
,/,
it/PRP
does/VBZ
n't/RB
give/VB
much/RB
of/IN
a/DT
clue/NN
as/IN
to/TO
whether/IN
a/DT
recession/NN
is/VBZ
on/IN
the/DT
horizon/NN
./.
``/``
I/PRP
do/VBP
n't/RB
think/VB
it/PRP
provides/VBZ
much/RB
new/JJ
information/NN
on/IN
the/DT
economy/NN
,/,
''/''
said/VBD
Richard/NNP
Rippe/NNP
,/,
economist/NN
at/IN
Dean/NNP
Witter/NNP
Reynolds/NNP
Inc/NNP
./.
So/RB
far/RB
this/DT
year/NN
,/,
the/DT
index/NN
of/IN
leading/VBG
indicators/NNS
has/VBZ
risen/VBN
in/IN
four/CD
months/NNS
,/,
fallen/VBN
in/IN
four/CD
months/NNS
and/CC
remained/VBD
unchanged/JJ
in/IN
the/DT
other/JJ
month/NN
./.
In/IN
another/DT
report/NN
yesterday/NN
,/,
the/DT
Commerce/NNP
Department/NNP
said/VBD
sales/NNS
of/IN
new/JJ
single-family/JJ
houses/NNS
plunged/VBD
14/CD
%/NN
in/IN
September/NNP
to/TO
an/DT
annual/JJ
rate/NN
of/IN
618,000/CD
from/IN
719,000/CD
in/IN
August/NNP
./.
The/DT
declines/NNS
were/VBD
particularly/RB
pronounced/VBN
in/IN
the/DT
Northeast/NNP
and/CC
in/IN
the/DT
South/NNP
,/,
where/WRB
Hurricane/NNP
Hugo/NNP
was/VBD
a/DT
factor/NN
./.
Although/IN
September/NNP
's/POS
weakness/NN
followed/VBD
two/CD
strong/JJ
months/NNS
for/IN
home/NN
sales/NNS
,/,
the/DT
decline/NN
supports/VBZ
other/JJ
indications/NNS
that/IN
the/DT
drop/NN
in/IN
mortgage/NN
rates/NNS
earlier/RBR
this/DT
year/NN
has/VBZ
had/VBN
only/RB
a/DT
limited/JJ
beneficial/JJ
effect/NN
on/IN
the/DT
housing/NN
market/NN
./.
The/DT
September/NNP
drop/NN
was/VBD
the/DT
largest/JJS
since/IN
a/DT
19/CD
%/NN
drop/NN
in/IN
January/NNP
1982/CD
,/,
but/CC
monthly/JJ
changes/NNS
in/IN
this/DT
measure/NN
are/VBP
even/RB
less/RBR
reliable/JJ
than/IN
those/DT
in/IN
other/JJ
economic/JJ
indicators/NNS
./.
Because/IN
the/DT
figures/NNS
are/VBP
based/VBN
on/IN
a/DT
small/JJ
sample/NN
,/,
the/DT
department/NN
said/VBD
it/PRP
is/VBZ
90/CD
%/NN
confident/JJ
only/RB
that/IN
new-home/JJ
sales/NNS
fell/VBD
somewhere/RB
between/IN
5/CD
%/NN
and/CC
23/CD
%/NN
during/IN
the/DT
month/NN
./.
The/DT
department/NN
also/RB
said/VBD
it/PRP
takes/VBZ
four/CD
months/NNS
to/TO
establish/VB
a/DT
trend/NN
./.
So/RB
far/RB
this/DT
year/NN
,/,
534,000/CD
newly/RB
built/VBN
homes/NNS
have/VBP
been/VBN
sold/VBN
,/,
down/RB
4.5/CD
%/NN
from/IN
the/DT
like/JJ
months/NNS
of/IN
1988/CD
./.
The/DT
index/NN
of/IN
leading/VBG
indicators/NNS
got/VBD
a/DT
major/JJ
boost/NN
in/IN
September/NNP
from/IN
a/DT
surge/NN
in/IN
consumer/NN
expectations/NNS
as/IN
measured/VBN
by/IN
the/DT
University/NNP
of/IN
Michigan/NNP
./.
This/DT
measure/NN
had/VBD
dropped/VBN
sharply/RB
in/IN
August/NNP
./.
The/DT
Commerce/NNP
Department/NNP
said/VBD
that/IN
as/IN
a/DT
result/NN
of/IN
a/DT
new/JJ
adjustment/NN
to/TO
the/DT
formula/NN
used/VBN
to/TO
calculate/VB
the/DT
index/NN
,/,
the/DT
influence/NN
of/IN
this/DT
component/NN
has/VBZ
been/VBN
reduced/VBN
./.
Of/IN
the/DT
11/CD
components/NNS
to/TO
the/DT
index/NN
,/,
only/RB
three/CD
others/NNS
rose/VBD
in/IN
September/NNP
:/:
the/DT
money/NN
supply/NN
,/,
the/DT
length/NN
of/IN
the/DT
average/JJ
work/NN
week/NN
and/CC
stock/NN
prices/NNS
./.
Several/JJ
components/NNS
that/WDT
track/VBP
the/DT
health/NN
of/IN
the/DT
manufacturing/VBG
sector/NN
of/IN
the/DT
economy/NN
turned/VBD
down/RB
in/IN
September/NNP
./.
These/DT
include/VBP
new/JJ
orders/NNS
for/IN
manufactured/JJ
consumer/NN
goods/NNS
,/,
lead/JJ
times/NNS
on/IN
vendor/NN
deliveries/NNS
,/,
orders/NNS
for/IN
new/JJ
plant/NN
and/CC
equipment/NN
,/,
and/CC
backlogs/NNS
of/IN
orders/NNS
for/IN
durable/JJ
goods/NNS
./.
Meanwhile/RB
,/,
the/DT
National/NNP
Association/NNP
of/IN
Manufacturers/NNPS
said/VBD
yesterday/NN
a/DT
recent/JJ
poll/NN
of/IN
53/CD
executives/NNS
on/IN
its/PRP$
board/NN
found/VBD
that/IN
61/CD
%/NN
do/VBP
n't/RB
expect/VB
a/DT
recession/NN
to/TO
occur/VB
until/IN
1991/CD
or/CC
later/RBR
./.
The/DT
remainder/NN
expect/VBP
a/DT
downturn/NN
to/TO
begin/VB
sometime/RB
in/IN
Although/IN
manufacturers/NNS
often/RB
are/VBP
quick/JJ
to/TO
call/VB
for/IN
lower/JJR
interest/NN
rates/NNS
,/,
60/CD
%/NN
of/IN
the/DT
executives/NNS
said/VBD
they/PRP
would/MD
prefer/VB
that/IN
the/DT
Fed/NNP
keep/VB
inflation-fighting/NN
as/IN
its/PRP$
top/JJ
priority/NN
even/RB
if/IN
that/DT
means/VBZ
higher/JJR
rates/NNS
./.
The/DT
other/JJ
40/CD
%/NN
said/VBD
the/DT
Fed/NNP
ought/MD
to/TO
worry/VB
less/RBR
about/IN
inflation/NN
and/CC
bring/VB
interest/NN
rates/NNS
down/RP
./.
All/PDT
the/DT
figures/NNS
are/VBP
adjusted/VBN
to/TO
remove/VB
usual/JJ
seasonal/JJ
patterns/NNS
./.
Here/RB
are/VBP
the/DT
net/JJ
contributions/NNS
of/IN
the/DT
components/NNS
of/IN
the/DT
Commerce/NNP
Department/NNP
's/POS
index/NN
of/IN
leading/VBG
indicators/NNS
./.
After/IN
various/JJ
adjustments/NNS
,/,
they/PRP
produced/VBD
a/DT
0.5/CD
%/NN
rise/NN
in/IN
the/DT
index/NN
for/IN
August/NNP
and/CC
a/DT
0.2/CD
%/NN
rise/NN
for/IN
September/NNP
./.
September/NNP
,/,
and/CC
the/DT
change/NN
from/IN
August/NNP
,/,
are/VBP
:/:
from/IN
1.11/CD
in/IN
the/DT
previous/JJ
month/NN
./.
Boston/NNP
Edison/NNP
Co./NNP
said/VBD
it/PRP
will/MD
take/VB
a/DT
previously/RB
reported/VBN
$/$
60/CD
million/CD
charge/NN
against/IN
earnings/NNS
in/IN
the/DT
fourth/JJ
quarter/NN
./.
The/DT
charge/NN
resulted/VBD
from/IN
a/DT
settlement/NN
approved/VBN
yesterday/NN
by/IN
the/DT
Massachusetts/NNP
Department/NNP
of/IN
Public/NNP
Utilities/NNPS
./.
As/IN
expected/VBN
,/,
the/DT
settlement/NN
limits/VBZ
rate/NN
increases/NNS
for/IN
three/CD
years/NNS
and/CC
ties/VBZ
future/JJ
charges/NNS
to/TO
customers/NNS
for/IN
operation/NN
of/IN
the/DT
troubled/JJ
Pilgrim/NNP
Nuclear/NNP
Power/NNP
Station/NNP
to/TO
that/DT
plant/NN
's/POS
performance/NN
./.
In/IN
its/PRP$
order/NN
,/,
the/DT
state/NN
regulatory/JJ
agency/NN
said/VBD
the/DT
company/NN
``/``
must/MD
be/VB
held/VBN
accountable/JJ
for/IN
the/DT
mistakes/NNS
made/VBN
in/IN
the/DT
management/NN
of/IN
the/DT
plant/NN
's/POS
operation/NN
./.
''/''
Pilgrim/NNP
had/VBD
been/VBN
closed/JJ
for/IN
32/CD
months/NNS
./.
The/DT
average/JJ
interest/NN
rate/NN
rose/VBD
to/TO
8.3875/CD
%/NN
at/IN
Citicorp/NNP
's/POS
$/$
50/CD
million/CD
weekly/JJ
auction/NN
of/IN
91-day/JJ
commercial/JJ
paper/NN
,/,
or/CC
corporate/JJ
IOUs/NNS
,/,
from/IN
8.337/CD
%/NN
at/IN
last/JJ
week/NN
's/POS
sale/NN
./.
Bids/NNS
totaling/VBG
$/$
515/CD
million/CD
were/VBD
submitted/VBN
./.
Accepted/JJ
bids/NNS
ranged/VBD
from/IN
8.38/CD
%/NN
to/TO
8.395/CD
%/NN
./.
Citicorp/NNP
also/RB
said/VBD
that/IN
the/DT
average/JJ
rate/NN
rose/VBD
to/TO
8.0087/CD
%/NN
at/IN
its/PRP$
$/$
50/CD
million/CD
auction/NN
of/IN
182-day/JJ
commercial/JJ
paper/NN
from/IN
7.962/CD
%/NN
at/IN
last/JJ
week/NN
's/POS
sale/NN
./.
Bids/NNS
totaling/VBG
$/$
475/CD
million/CD
were/VBD
submitted/VBN
./.
Accepted/JJ
bids/NNS
ranged/VBD
from/IN
8/CD
%/NN
to/TO
8.019/CD
%/NN
./.
The/DT
bank/NN
holding/NN
company/NN
will/MD
auction/VB
another/DT
$/$
50/CD
million/CD
in/IN
each/DT
maturity/NN
next/IN
Tuesday/NNP
./.
An/DT
imaginative/JJ
novelist/NN
writing/VBG
a/DT
thriller/NN
about/IN
amateur/JJ
spy-chasing/NN
might/MD
invent/VB
a/DT
Clifford/NNP
Stoll/NNP
,/,
but/CC
it/PRP
's/VBZ
unlikely/JJ
./.
It/PRP
's/VBZ
also/RB
unnecessary/JJ
./.
Amateur/JJ
spy-chaser/NN
Clifford/NNP
Stoll/NNP
is/VBZ
a/DT
real/JJ
person/NN
,/,
or/CC
as/IN
he/PRP
might/MD
waggishly/RB
put/VB
it/PRP
,/,
a/DT
surreal/JJ
person/NN
./.
He/PRP
is/VBZ
37/CD
,/,
an/DT
astronomer/NN
with/IN
impressive/JJ
credentials/NNS
,/,
and/CC
something/NN
of/IN
a/DT
genius/NN
at/IN
making/VBG
computers/NNS
do/VB
his/PRP$
bidding/NN
./.
He/PRP
once/RB
described/VBD
himself/PRP
as/IN
a/DT
``/``
Berkeley/NNP
Hippie/NNP
,/,
''/''
and/CC
played/VBD
the/DT
role/NN
well/RB
;/:
obligatory/JJ
ragged/JJ
jeans/NNS
,/,
a/DT
thicket/NN
of/IN
long/JJ
hair/NN
and/CC
rejection/NN
of/IN
all/DT
things/NNS
conventional/JJ
,/,
including/VBG
,/,
for/IN
a/DT
time/NN
at/IN
least/JJS
,/,
formal/JJ
marriage/NN
to/TO
his/PRP$
``/``
sweetheart/NN
,/,
''/''
Martha/NNP
Matthews/NNP
./.
He/PRP
also/RB
is/VBZ
an/DT
entertaining/JJ
writer/NN
,/,
combining/VBG
wisecracks/NNS
and/CC
wordplay/NN
with/IN
programmatic/JJ
detail/NN
and/CC
lucid/JJ
explanations/NNS
of/IN
how/WRB
computers/NNS
work/VBP
./.
In/IN
``/``
The/DT
Cuckoo/NN
's/POS
Egg/NN
''/''
(/(
Doubleday/NNP
,/,
326/CD
pages/NNS
,/,
$/$
19.95/CD
he/PRP
spins/VBZ
a/DT
remarkable/JJ
tale/NN
of/IN
his/PRP$
efforts/NNS
over/IN
18/CD
months/NNS
to/TO
catch/VB
a/DT
computer/NN
spy/NN
./.
The/DT
result/NN
last/JJ
spring/NN
was/VBD
the/DT
arrest/NN
by/IN
West/JJ
German/NNP
authorities/NNS
of/IN
five/CD
young/JJ
West/NNPS
Germans/NNPS
,/,
accused/VBN
of/IN
stealing/VBG
information/NN
from/IN
computers/NNS
in/IN
the/DT
U.S./NNP
and/CC
Europe/NNP
and/CC
selling/VBG
it/PRP
to/TO
the/DT
Soviet/NNP
KGB/NNP
./.
One/CD
of/IN
them/PRP
,/,
25-year-old/JJ
Markus/NNP
Hess/NNP
of/IN
Hannover/NNP
,/,
allegedly/RB
used/VBD
the/DT
international/JJ
telecommunications/NN
network/NN
to/TO
break/VB
into/IN
more/JJR
than/IN
30/CD
high-security/JJ
computers/NNS
in/IN
the/DT
U.S./NNP
,/,
searching/VBG
for/IN
secrets/NNS
./.
He/PRP
probably/RB
did/VBD
n't/RB
penetrate/VB
any/DT
top-secret/JJ
files/NNS
,/,
but/CC
the/DT
KGB/NNP
in/IN
East/NNP
Berlin/NNP
was/VBD
willing/JJ
to/TO
pay/VB
two/CD
of/IN
his/PRP$
associates/NNS
,/,
Peter/NNP
Carl/NNP
and/CC
Dirk/NNP
Brezinski/NNP
,/,
$/$
15,000/CD
for/IN
some/DT
of/IN
the/DT
material/NN
Hess/NNP
collected/VBD
./.
They/PRP
promised/VBD
yet/RB
more/JJR
for/IN
really/RB
good/JJ
stuff/NN
./.
Mr./NNP
Stoll/NNP
draws/VBZ
his/PRP$
title/NN
from/IN
the/DT
cuckoo/NN
's/POS
habit/NN
of/IN
laying/VBG
eggs/NNS
in/IN
the/DT
nests/NNS
of/IN
other/JJ
birds/NNS
,/,
making/VBG
them/PRP
surrogate/JJ
parents/NNS
./.
The/DT
computer/NN
spy/NN
had/VBD
discovered/VBN
that/IN
a/DT
popular/JJ
editing\/electronic/JJ
mail/NN
program/NN
called/VBN
Gnu-Emacs/NNP
could/MD
do/VB
tricks/NNS
with/IN
the/DT
widely/RB
used/JJ
Unix/NNP
operating/VBG
system/NN
created/VBN
by/IN
AT&T/NNP
./.
Using/VBG
Gnu-Emacs/NNP
,/,
the/DT
spy/NN
could/MD
substitute/VB
a/DT
bogus/JJ
``/``
atrun/JJ
''/''
program/NN
for/IN
the/DT
one/NN
that/WDT
routinely/RB
cleans/VBZ
up/RP
the/DT
Unix/NNP
system/NN
every/DT
five/CD
minutes/NNS
./.
Once/RB
his/PRP$
cuckoo/NN
's/POS
egg/NN
was/VBD
laid/VBN
,/,
he/PRP
could/MD
enter/VB
Unix/NNP
and/CC
become/VB
a/DT
``/``
super-user/NN
,/,
''/''
with/IN
access/NN
to/TO
everything/NN
./.
Mr./NNP
Stoll/NNP
was/VBD
scanning/VBG
the/DT
heavens/NNS
at/IN
the/DT
Keck/NNP
observatory/NN
of/IN
the/DT
Lawrence/NNP
Berkeley/NNP
Laboratory/NNP
in/IN
1986/CD
when/WRB
his/PRP$
grant/NN
ran/VBD
low/RB
and/CC
he/PRP
was/VBD
asked/VBN
to/TO
switch/VB
to/TO
helping/VBG
run/VB
the/DT
lab/NN
's/POS
computers/NNS
./.
He/PRP
discovered/VBD
a/DT
75-cent/JJ
discrepancy/NN
in/IN
the/DT
charges/NNS
made/VBN
to/TO
various/JJ
departments/NNS
for/IN
computer/NN
time/NN
and/CC
traced/VBD
it/PRP
to/TO
a/DT
user/NN
named/VBN
``/``
Hunter/NNP
,/,
''/''
who/WP
had/VBD
no/DT
valid/JJ
billing/NN
address/NN
./.
Mr./NNP
Stoll/NNP
suspected/VBD
the/DT
intruder/NN
was/VBD
one/CD
of/IN
those/DT
precocious/JJ
students/NNS
who/WP
has/VBZ
fun/NN
breaking/VBG
into/IN
computers/NNS
./.
But/CC
after/IN
much/JJ
tracking/NN
,/,
it/PRP
became/VBD
evident/JJ
to/TO
Mr./NNP
Stoll/NNP
,/,
through/IN
various/JJ
clues/NNS
,/,
that/IN
the/DT
hacker/NN
was/VBD
not/RB
on/IN
the/DT
Berkeley/NNP
campus/NN
or/CC
even/RB
in/IN
California/NNP
./.
Finding/VBG
him/PRP
became/VBD
an/DT
obsession/NN
for/IN
Mr./NNP
Stoll/NNP
./.
He/PRP
made/VBD
a/DT
midnight/NN
requisition/NN
of/IN
all/PDT
the/DT
printers/NNS
he/PRP
could/MD
lay/VB
hands/NNS
on/RB
so/IN
that/IN
he/PRP
could/MD
monitor/VB
all/PDT
the/DT
telephone/NN
lines/NNS
coming/VBG
into/IN
the/DT
lab/NN
's/POS
computers/NNS
./.
After/IN
discovering/VBG
that/IN
the/DT
hacker/NN
had/VBD
taken/VBN
over/RP
the/DT
dormant/JJ
account/NN
of/IN
a/DT
legitimate/JJ
user/NN
named/VBN
Joe/NNP
Sventek/NNP
,/,
he/PRP
rigged/VBD
up/RP
an/DT
alarm/NN
system/NN
,/,
including/VBG
a/DT
portable/JJ
beeper/NN
,/,
to/TO
alert/VB
him/PRP
when/WRB
Sventek/NNP
came/VBD
on/IN
the/DT
line/NN
./.
Some/DT
nights/NNS
he/PRP
slept/VBD
under/IN
his/PRP$
desk/NN
./.
His/PRP$
boss/NN
complained/VBD
about/IN
neglect/NN
of/IN
other/JJ
chores/NNS
./.
The/DT
hacker/NN
was/VBD
pawing/VBG
over/IN
the/DT
Berkeley/NNP
files/NNS
but/CC
also/RB
using/VBG
Berkeley/NNP
and/CC
other/JJ
easily/RB
accessible/JJ
computers/NNS
as/IN
stepping/JJ
stones/NNS
to/TO
the/DT
network/NN
of/IN
computers/NNS
used/VBN
by/IN
the/DT
military/NN
and/CC
national/JJ
security/NN
agencies/NNS
./.
The/DT
White/NNP
Sands/NNPS
missile/NN
range/NN
and/CC
CIA/NNP
contractor/NN
Mitre/NNP
Inc./NNP
were/VBD
among/IN
the/DT
targets/NNS
./.
When/WRB
the/DT
hacker/NN
moved/VBD
,/,
Mr./NNP
Stoll/NNP
moved/VBD
too/RB
,/,
calling/VBG
up/RP
other/JJ
systems/NNS
managers/NNS
to/TO
alert/VB
them/PRP
but/CC
keeping/VBG
his/PRP$
own/JJ
system/NN
open/JJ
to/TO
avoid/VB
arousing/VBG
suspicion/NN
./.
Sometimes/RB
,/,
if/IN
the/DT
hacker/NN
seemed/VBD
to/TO
be/VB
into/IN
a/DT
sensitive/JJ
file/NN
,/,
he/PRP
would/MD
drag/VB
his/PRP$
keychain/NN
across/IN
the/DT
terminal/NN
to/TO
create/VB
static/JJ
or/CC
slow/VB
the/DT
system/NN
down/RP
to/TO
frustrate/VB
his/PRP$
quarry/NN
./.
The/DT
FBI/NNP
initially/RB
showed/VBD
little/JJ
interest/NN
,/,
and/CC
he/PRP
had/VBD
the/DT
impression/NN
other/JJ
federal/JJ
security/NN
agencies/NNS
were/VBD
tangled/VBN
up/RB
in/IN
legal/JJ
red/JJ
tape/NN
./.
The/DT
CIA/NNP
told/VBD
him/PRP
it/PRP
does/VBZ
not/RB
do/VB
domestic/JJ
counterespionage/NN
./.
One/PRP
learns/VBZ
a/DT
lot/NN
from/IN
this/DT
book/NN
,/,
or/CC
seems/VBZ
to/TO
,/,
about/IN
crippling/JJ
federal/JJ
bureaucracy/NN
./.
``/``
Seems/VBZ
to/TO
''/''
because/IN
it/PRP
's/VBZ
possible/JJ
that/IN
the/DT
CIA/NNP
and/CC
the/DT
National/NNP
Security/NNP
Agency/NNP
were/VBD
more/RBR
interested/JJ
than/IN
they/PRP
let/VB
on/RB
to/TO
Mr./NNP
Stoll/NNP
./.
Finally/RB
,/,
he/PRP
got/VBD
help/NN
./.
Tymnet/NNP
is/VBZ
a/DT
major/JJ
network/NN
linking/VBG
computers/NNS
./.
One/CD
of/IN
its/PRP$
international/JJ
specialists/NNS
,/,
Steve/NNP
White/NNP
,/,
took/VBD
a/DT
quick/JJ
interest/NN
in/IN
Mr./NNP
Stoll/NNP
's/POS
hunt/NN
,/,
ultimately/RB
tracing/VBG
the/DT
hacker/NN
to/TO
West/NNP
Germany/NNP
./.
The/DT
West/NNPS
Germans/NNPS
then/RB
took/VBD
over/RB
and/CC
finally/RB
found/VBD
Markus/NNP
Hess/NNP
./.
Eventually/RB
,/,
Mr./NNP
Stoll/NNP
was/VBD
invited/VBN
to/TO
both/DT
the/DT
CIA/NNP
and/CC
NSA/NNP
to/TO
brief/VB
high-ranking/JJ
officers/NNS
on/IN
computer/NN
theft/NN
./.
He/PRP
savored/VBD
the/DT
humor/NN
of/IN
his/PRP$
uncombed/JJ
appearance/NN
among/IN
these/DT
buttoned-up/JJ
chaps/NNS
./.
Back/RB
in/IN
Berkeley/NNP
,/,
he/PRP
was/VBD
violently/RB
scolded/VBN
by/IN
a/DT
left-wing/JJ
lady/NN
friend/NN
for/IN
consorting/VBG
with/IN
such/JJ
people/NNS
./.
He/PRP
became/VBD
angry/JJ
in/IN
return/NN
./.
He/PRP
had/VBD
developed/VBN
a/DT
hatred/NN
for/IN
the/DT
hacker/NN
and/CC
a/DT
grudging/JJ
appreciation/NN
of/IN
the/DT
federal/JJ
``/``
spooks/NNS
''/''
who/WP
make/VBP
national/JJ
security/NN
their/PRP$
business/NN
./.
At/IN
several/JJ
different/JJ
levels/NNS
,/,
it/PRP
's/VBZ
a/DT
fascinating/JJ
tale/NN
./.
Mr./NNP
Melloan/NNP
is/VBZ
deputy/JJ
editor/NN
of/IN
the/DT
Journal/NNP
./.
Mips/NNP
Computer/NNP
Systems/NNPS
Inc./NNP
today/NN
will/MD
unveil/VB
a/DT
new/JJ
general-purpose/JJ
computer/NN
that/WDT
will/MD
compete/VB
with/IN
more/RBR
expensive/JJ
machines/NNS
from/IN
companies/NNS
such/JJ
as/IN
Sun/NNP
Microsystems/NNPS
Inc./NNP
and/CC
Digital/NNP
Equipment/NNP
Corp/NNP
./.
The/DT
closely/RB
held/JJ
Sunnyvale/NNP
,/,
Calif./NNP
,/,
company/NN
also/RB
will/MD
announce/VB
an/DT
agreement/NN
to/TO
supply/VB
computers/NNS
to/TO
Control/NNP
Data/NNP
Corp./NNP
,/,
which/WDT
will/MD
sell/VB
Mips/NNP
machines/NNS
under/IN
its/PRP$
own/JJ
label/NN
./.
The/DT
new/JJ
Mips/NNP
machine/NN
,/,
called/VBN
the/DT
RC6280/NN
,/,
will/MD
cost/VB
$/$
150,000/CD
for/IN
a/DT
basic/JJ
system/NN
./.
The/DT
computer/NN
processes/VBZ
55/CD
million/CD
instructions/NNS
per/IN
second/NN
and/CC
uses/VBZ
only/RB
one/CD
central/JJ
processing/VBG
chip/NN
,/,
unlike/IN
many/JJ
rival/JJ
machines/NNS
using/VBG
several/JJ
processors/NNS
./.
The/DT
machine/NN
employs/VBZ
reduced/JJ
instruction-set/JJ
computing/NN
,/,
or/CC
RISC/NNP
,/,
technology/NN
./.
At/IN
that/DT
price/NN
,/,
an/DT
analyst/NN
familiar/JJ
with/IN
the/DT
machine/NN
said/VBD
,/,
the/DT
computer/NN
offers/VBZ
up/IN
to/TO
10/CD
times/NNS
the/DT
performance/NN
of/IN
similar/JJ
machines/NNS
./.
``/``
In/IN
the/DT
price/NN
range/NN
it/PRP
's/VBZ
a/DT
tremendously/RB
high-performing/JJ
product/NN
,/,
''/''
said/VBD
Sandy/NNP
Gant/NNP
,/,
an/DT
analyst/NN
at/IN
the/DT
market-research/JJ
firm/NN
InfoCorp/NNP
./.
The/DT
machine/NN
is/VBZ
part/NN
of/IN
an/DT
effort/NN
by/IN
Mips/NNP
to/TO
establish/VB
itself/PRP
as/IN
a/DT
supplier/NN
of/IN
computers/NNS
,/,
not/RB
just/RB
of/IN
integrated-circuit/JJ
technology/NN
./.
Mips/NNP
also/RB
wants/VBZ
to/TO
wedge/VB
into/IN
markets/NNS
other/JJ
than/IN
traditional/JJ
RISC/NNP
applications/NNS
such/JJ
as/IN
engineering/NN
;/:
Mips/NNP
said/VBD
the/DT
new/JJ
machine/NN
will/MD
also/RB
be/VB
used/VBN
by/IN
businesses/NNS
and/CC
for/IN
communications/NNS
./.
``/``
This/DT
clearly/RB
demonstrates/VBZ
that/IN
Mips/NNP
is/VBZ
a/DT
systems/NNS
company/NN
rather/RB
than/IN
just/RB
a/DT
chip/NN
company/NN
,/,
''/''
said/VBD
Mips/NNP
Vice/NNP
President/NNP
John/NNP
Hime/NNP
./.
The/DT
Control/NNP
Data/NNP
deal/NN
is/VBZ
a/DT
boon/NN
for/IN
Mips/NNP
because/IN
it/PRP
gives/VBZ
the/DT
the/DT
five-year-old/JJ
company/NN
one/CD
more/JJR
ally/NN
as/IN
it/PRP
battles/VBZ
more/RBR
established/JJ
electronic/JJ
concerns/NNS
such/JJ
as/IN
Sun/NNP
,/,
Hewlett-Packard/NNP
Co./NNP
,/,
Motorola/NNP
Inc./NNP
and/CC
Intel/NNP
Corp./NNP
for/IN
the/DT
emerging/VBG
market/NN
for/IN
RISC/NNP
machines/NNS
./.
RISC/NNP
technology/NN
speeds/VBZ
up/RP
a/DT
computer/NN
by/IN
simplifying/VBG
the/DT
internal/JJ
software/NN
./.
For/IN
Mips/NNP
,/,
which/WDT
expects/VBZ
revenue/NN
of/IN
$/$
100/CD
million/CD
this/DT
year/NN
,/,
big-name/JJ
allies/NNS
such/JJ
as/IN
Control/NNP
Data/NNP
are/VBP
essential/JJ
to/TO
attract/VB
software/NN
developers/NNS
to/TO
the/DT
company/NN
's/POS
RISC/NNP
architecture/NN
./.
``/``
The/DT
thing/NN
it/PRP
says/VBZ
about/IN
Mips/NNP
is/VBZ
that/IN
they/PRP
're/VBP
on/IN
a/DT
roll/NN
right/RB
now/RB
,/,
''/''
said/VBD
Ms./NNP
Gant/NNP
at/IN
InfoCorp/NNP
./.
``/``
They/PRP
're/VBP
getting/VBG
some/DT
major/JJ
wins/NNS
,/,
''/''
she/PRP
added/VBD
./.
Last/JJ
month/NN
,/,
for/IN
example/NN
,/,
Mips/NNP
agreed/VBD
to/TO
supply/VB
its/PRP$
computers/NNS
to/TO
Nixdorf/NNP
Computer/NNP
AG/NNP
of/IN
West/NNP
Germany/NNP
and/CC
France/NNP
's/POS
Groupe/NNP
Bull/NNP
./.
Sony/NNP
Corp./NNP
,/,
Tandem/NNP
Computers/NNPS
Inc./NNP
and/CC
Digital/NNP
Equipment/NNP
have/VBP
agreed/VBN
to/TO
sell/VB
MIPS/NNP
computers/NNS
and/CC
companies/NNS
such/JJ
as/IN
Japan/NNP
's/POS
NEC/NNP
Corp./NNP
and/CC
West/NNP
Germany/NNP
's/POS
Siemens/NNP
A.G./NNP
have/VBP
agreed/VBN
to/TO
make/VB
Mips/NNP
chips/NNS
under/IN
license/NN
./.
Today/NN
's/POS
agreement/NN
gives/VBZ
Control/NNP
Data/NNP
a/DT
machine/NN
to/TO
compete/VB
against/IN
Digital/NNP
and/CC
other/JJ
general-purpose/JJ
computer/NN
makers/NNS
,/,
said/VBD
John/NNP
Logan/NNP
,/,
a/DT
computer-market/JJ
analyst/NN
at/IN
Aberdeen/NNP
Group/NNP
Inc./NNP
of/IN
Boston/NNP
./.
The/DT
machine/NN
is/VBZ
essentially/RB
a/DT
mainframe/NN
computer/NN
,/,
he/PRP
said/VBD
./.
``/``
Suddenly/RB
CDC/NNP
Control/NNP
Data/NNP
a/DT
competitive/JJ
product/NN
to/TO
fight/VB
back/RB
against/IN
the/DT
VAX9000/NN
,/,
''/''
a/DT
machine/NN
Digital/NNP
announced/VBD
last/JJ
month/NN
,/,
he/PRP
added/VBD
./.
Control/NNP
Data/NNP
,/,
based/VBN
in/IN
Minneapolis/NNP
,/,
Minn./NNP
,/,
expects/VBZ
its/PRP$
sales/NNS
of/IN
Mips/NNP
systems/NNS
,/,
including/VBG
the/DT
new/JJ
RC6280/NN
,/,
to/TO
amount/VB
to/TO
more/JJR
than/IN
$/$
100/CD
million/CD
by/IN
the/DT
end/NN
of/IN
1991/CD
,/,
Mips/NNP
said/VBD
./.
Nixdorf/NNP
,/,
Bull/NNP
and/CC
others/NNS
will/MD
also/RB
sell/VB
versions/NNS
of/IN
the/DT
machine/NN
,/,
said/VBD
Mips/NNP
President/NNP
Robert/NNP
Miller/NNP
./.
Mips/NNP
will/MD
start/VB
shipping/VBG
its/PRP$
new/JJ
machine/NN
in/IN
the/DT
first/JJ
quarter/NN
of/IN
1990/CD
,/,
he/PRP
said/VBD
./.
The/DT
machine/NN
uses/VBZ
a/DT
single/JJ
processor/NN
,/,
which/WDT
makes/VBZ
it/PRP
easier/JJR
to/TO
program/VB
than/IN
competing/VBG
machines/NNS
using/VBG
several/JJ
processors/NNS
./.
The/DT
computer/NN
can/MD
process/VB
13.3/CD
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called/VBD
floating-point/JJ
operations/NNS
every/DT
second/NN
./.
The/DT
machine/NN
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software/NN
written/VBN
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other/JJ
Mips/NNP
computers/NNS
,/,
the/DT
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said/VBD
./.
Another/DT
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is/VBZ
brewing/VBG
between/IN
Congress/NNP
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the/DT
Bush/NNP
administration/NN
over/IN
how/WRB
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pay/VB
for/IN
the/DT
savings-and-loan/NN
bailout/NN
without/IN
adding/VBG
to/TO
the/DT
federal/JJ
budget/NN
deficit/NN
./.
In/IN
a/DT
hearing/NN
before/IN
the/DT
House/NNP
Ways/NNPS
and/CC
Means/NNPS
Committee/NNP
,/,
the/DT
General/NNP
Accounting/NNP
Office/NNP
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the/DT
Congressional/NNP
Budget/NNP
Office/NNP
,/,
which/WDT
both/DT
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arms/NNS
of/IN
Congress/NNP
,/,
advised/VBD
the/DT
new/JJ
S&L/NN
bailout/NN
agency/NN
to/TO
abandon/VB
plans/NNS
to/TO
raise/VB
temporary/JJ
working/JJ
capital/NN
through/IN
debt/NN
issued/VBN
from/IN
an/DT
agency/NN
that/WDT
would/MD
n't/RB
be/VB
counted/VBN
on/IN
the/DT
federal/JJ
budget/NN
./.
Officials/NNS
of/IN
the/DT
Resolution/NNP
Trust/NNP
Corp./NNP
have/VBP
said/VBN
privately/RB
that/IN
such/PDT
a/DT
plan/NN
was/VBD
the/DT
most/RBS
likely/JJ
alternative/NN
to/TO
raise/VB
short-term/JJ
cash/NN
for/IN
the/DT
bailout/NN
./.
Instead/RB
,/,
the/DT
GAO/NNP
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the/DT
Congressional/NNP
Budget/NNP
Office/NNP
said/VBD
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the/DT
RTC/NNP
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,/,
which/WDT
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oversight/NN
by/IN
Congress/NNP
./.
The/DT
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deficit-reduction/JJ
targets/NNS
in/IN
the/DT
Gramm-Rudman/NNP
budget/NN
law/NN
./.
The/DT
RTC/NNP
has/VBZ
projected/VBN
that/IN
it/PRP
will/MD
require/VB
between/IN
$/$
50/CD
billion/CD
to/TO
$/$
100/CD
billion/CD
in/IN
temporary/JJ
working/JJ
capital/NN
./.
The/DT
borrowing/NN
to/TO
raise/VB
these/DT
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would/MD
be/VB
paid/VBN
off/RB
as/IN
assets/NNS
of/IN
sick/JJ
thrifts/NNS
are/VBP
sold/VBN
./.
The/DT
new/JJ
S&L/NN
law/NN
allows/VBZ
the/DT
RTC/NNP
to/TO
issue/VB
notes/NNS
for/IN
as/RB
much/JJ
as/IN
85/CD
%/NN
of/IN
the/DT
value/NN
of/IN
the/DT
assets/NNS
it/PRP
holds/VBZ
./.
But/CC
higher/JJR
interest/NN
rates/NNS
paid/VBN
on/IN
off-budget/JJ
debt/NN
could/MD
add/VB
billions/NNS
to/TO
the/DT
bailout/NN
costs/NNS
,/,
and/CC
would/MD
n't/RB
be/VB
subject/JJ
to/TO
congressional/JJ
scrutiny/NN
,/,
Ways/NNPS
and/CC
Means/NNPS
members/NNS
argued/VBD
./.
``/``
To/TO
allow/VB
this/DT
massive/JJ
level/NN
of/IN
unfettered/JJ
federal/JJ
borrowing/NN
without/IN
prior/JJ
congressional/JJ
approval/NN
would/MD
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,/,
''/''
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Rep./NNP
Fortney/NNP
Stark/NNP
D./NNP
,/,
Calif./NNP
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to/TO
limit/VB
the/DT
RTC/NNP
's/POS
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issue/VB
debt/NN
./.
The/DT
RTC/NNP
will/MD
have/VB
to/TO
sell/VB
or/CC
merge/VB
hundreds/NNS
of/IN
insolvent/JJ
thrifts/NNS
over/IN
the/DT
next/JJ
three/CD
years/NNS
./.
The/DT
new/JJ
S&L/NN
bailout/NN
law/NN
allows/VBZ
$/$
50/CD
billion/CD
to/TO
be/VB
spent/VBN
to/TO
sell/VB
or/CC
merge/VB
sick/JJ
S&Ls/NNS
and/CC
their/PRP$
assets/NNS
,/,
but/CC
that/DT
is/VBZ
a/DT
net/JJ
cost/NN
./.
In/IN
the/DT
meantime/NN
,/,
the/DT
agency/NN
must/MD
raise/VB
cash/NN
to/TO
maintain/VB
assets/NNS
,/,
such/JJ
as/IN
real/JJ
estate/NN
,/,
until/IN
they/PRP
can/MD
be/VB
sold/VBN
./.
Then/RB
the/DT
short-term/JJ
debt/NN
is/VBZ
paid/VBN
off/RB
through/IN
the/DT
proceeds/NNS
of/IN
selling/VBG
the/DT
assets/NNS
./.
David/NNP
Mullins/NNP
,/,
assistant/NN
secretary/NN
of/IN
the/DT
Treasury/NNP
,/,
said/VBD
that/IN
the/DT
working/JJ
capital/NN
is/VBZ
necessary/JJ
to/TO
reduce/VB
the/DT
final/JJ
costs/NNS
of/IN
the/DT
bailout/NN
,/,
by/IN
allowing/VBG
the/DT
agency/NN
to/TO
sell/VB
savings/NNS
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loans/NNS
without/IN
their/PRP$
bad/JJ
assets/NNS
,/,
then/RB
hold/VB
the/DT
assets/NNS
until/IN
they/PRP
can/MD
be/VB
sold/VBN
under/IN
favorable/JJ
conditions/NNS
./.
He/PRP
said/VBD
it/PRP
has/VBZ
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yet/RB
been/VBN
determined/VBN
how/WRB
the/DT
RTC/NNP
will/MD
raise/VB
the/DT
cash/NN
,/,
but/CC
the/DT
administration/NN
does/VBZ
n't/RB
want/VB
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to/TO
be/VB
included/VBN
on/IN
the/DT
federal/JJ
budget/NN
,/,
because/IN
it/PRP
would/MD
``/``
distort/VB
''/''
the/DT
budget/NN
process/NN
by/IN
requiring/VBG
either/CC
exemptions/NNS
from/IN
Gramm-Rudman/NNP
or/CC
big/JJ
increases/NNS
in/IN
the/DT
budget/NN
deficit/NN
./.
But/CC
the/DT
worst/JJS
possibility/NN
would/MD
be/VB
raising/VBG
no/DT
working/JJ
capital/NN
,/,
he/PRP
said/VBD
./.
``/``
If/IN
working/JJ
capital/NN
financing/NN
is/VBZ
not/RB
provided/VBN
,/,
''/''
he/PRP
said/VBD
,/,
``/``
the/DT
RTC/NNP
may/MD
have/VB
to/TO
slow/VB
{/(
S&L/NN
sales/NNS
assets/NNS
through/IN
fire/NN
sales/NNS
./.
''/''
Panhandle/NNP
Eastern/NNP
Corp./NNP
said/VBD
it/PRP
applied/VBD
,/,
on/IN
behalf/NN
of/IN
two/CD
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its/PRP$
subsidiaries/NNS
,/,
to/TO
the/DT
Federal/NNP
Energy/NNP
Regulatory/NNP
Commission/NNP
for/IN
permission/NN
to/TO
build/VB
a/DT
352-mile/JJ
,/,
$/$
273/CD
million/CD
pipeline/NN
system/NN
from/IN
Pittsburg/NNP
County/NNP
,/,
Okla./NNP
,/,
to/TO
Independence/NNP
,/,
Miss/NNP
./.
The/DT
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pipeline/NN
concern/NN
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the/DT
500/CD
million/CD
cubic/JJ
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a/DT
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pipeline/NN
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built/VBN
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a/DT
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joint/NN
venture/NN
between/IN
two/CD
Panhandle/NNP
Eastern/NNP
units/NNS
-/:
Texas/NNP
Eastern/NNP
Transmission/NNP
Corp./NNP
and/CC
Trunkline/NNP
Gas/NNP
Co/NNP
./.
Texas/NNP
Eastern/NNP
Transmission/NNP
will/MD
build/VB
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operate/VB
the/DT
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,/,
which/WDT
will/MD
connect/VB
the/DT
Arkoma/NNP
Basin/NNP
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several/JJ
interstate/JJ
pipelines/NNS
./.
Now/RB
was/VBD
that/IN
a/DT
quarter/NN
cup/NN
or/CC
a/DT
half/JJ
cup/NN
?/.
Not/RB
a/DT
gripping/JJ
question/NN
,/,
unless/IN
you/PRP
're/VBP
the/DT
pastry/NN
chef/NN
of/IN
this/DT
city/NN
's/POS
Chez/NNP
Panisse/NNP
restaurant/NN
and/CC
you/PRP
've/VBP
just/RB
lost/VBN
your/PRP$
priceless/JJ
personal/JJ
dessert/NN
notebook/NN
./.
Chez/NNP
Panisse/NNP
was/VBD
listed/VBN
among/IN
the/DT
top/JJ
30/CD
restaurants/NNS
in/IN
the/DT
world/NN
this/DT
year/NN
by/IN
Connoisseur/NNP
magazine/NN
./.
The/DT
tattered/JJ
black/JJ
binder/NN
,/,
bulging/VBG
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18/CD
years/NNS
'/POS
worth/NN
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held/VBN
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bands/NNS
,/,
was/VBD
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chef/NN
Lindsey/NNP
Shere/NNP
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when/WRB
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was/VBD
stolen/VBN
from/IN
her/PRP$
house/NN
recently/RB
./.
The/DT
Berkeley/NNP
police/NNS
do/VBP
n't/RB
have/VB
any/DT
leads/NNS
but/CC
doubt/VB
the/DT
crime/NN
was/VBD
driven/VBN
by/IN
a/DT
passion/NN
for/IN
sweets/NNS
./.
Instead/RB
,/,
they/PRP
figure/VBP
the/DT
culprit/NN
probably/RB
took/VBD
money/NN
from/IN
Ms./NNP
Shere/NNP
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and/CC
discarded/VBD
all/PDT
the/DT
tips/NNS
in/IN
the/DT
five-by-eight-inch/JJ
looseleaf/NN
./.
Chez/NNP
Panisse/NNP
,/,
whose/WP$
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,/,
Alice/NNP
Waters/NNP
,/,
is/VBZ
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inventor/NN
of/IN
the/DT
cooking/JJ
style/NN
known/VBN
as/IN
California/NNP
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and/CC
whose/WP$
patrons/NNS
make/VBP
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a/DT
month/NN
in/IN
advance/NN
,/,
has/VBZ
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exactly/RB
subjected/VBN
diners/NNS
to/TO
vanilla/NN
ice/NN
cream/NN
because/IN
of/IN
the/DT
theft/NN
./.
For/IN
one/CD
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,/,
Ms./NNP
Shere/NNP
can/MD
draw/VB
on/IN
her/PRP
cookbook/NN
,/,
published/VBN
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Random/NNP
House/NNP
four/CD
years/NNS
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,/,
which/WDT
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teeming/VBG
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as/IN
kiwi/NN
sherbet/NN
,/,
gooseberry/NN
fool/NN
a/DT
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crushed/JJ
stewed/JJ
berries/NNS
hazelnut/NN
``/``
oeufs/FW
a/FW
la/FW
neige/FW
./.
''/''
For/IN
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,/,
sympathetic/JJ
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sent/VBN
Ms./NNP
Shere/NNP
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her/PRP$
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years/NNS
./.
Still/RB
,/,
the/DT
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's/POS
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five-course/JJ
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--/:
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opening/VBG
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1971/CD
--/:
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constant/JJ
improvisation/NN
./.
And/CC
that/DT
puts/VBZ
added/JJ
pressure/NN
on/IN
Chez/NNP
Panisse/NNP
dessert-menu/NN
planners/NNS
./.
``/``
We/PRP
make/VBP
what/WP
we/PRP
know/VBP
how/WRB
to/TO
make/VB
,/,
''/''
says/VBZ
business/NN
manager/NN
Richard/NNP
Mazzera/NNP
./.
Many/JJ
in/IN
the/DT
Bay/NNP
Area/NNP
's/POS
pastry/NN
community/NN
express/VBP
disbelief/NN
that/IN
Ms./NNP
Shere/NNP
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one/CD
copy/NN
of/IN
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valuable/JJ
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,/,
but/CC
she/PRP
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moral/JJ
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Baker/NNP
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Dozen/NNP
,/,
a/DT
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California/NNP
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regularly/RB
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keep/VB
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from/IN
weeping/VBG
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how/WRB
bovine/JJ
eating/JJ
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butter/NN
texture/NN
./.
Ms./NNP
Shere/NNP
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a/DT
$/$
500/CD
reward/NN
for/IN
the/DT
book/NN
's/POS
return/NN
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figures/VBZ
she/PRP
'll/MD
have/VB
to/TO
reinvent/VB
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from/IN
scratch/NN
./.
``/``
It/PRP
's/VBZ
an/DT
overwhelming/JJ
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,/,
''/''
she/PRP
says/VBZ
./.
``/``
There/EX
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you/PRP
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made/VBN
out/IN
of/IN
eggs/NNS
and/CC
butter/NN
and/CC
milk/NN
./.
''/''
Newport/NNP
Electronics/NNPS
Inc./NNP
named/VBD
a/DT
new/JJ
slate/NN
of/IN
officers/NNS
,/,
a/DT
move/NN
that/WDT
follows/VBZ
replacement/NN
of/IN
the/DT
company/NN
's/POS
five/CD
incumbent/JJ
directors/NNS
last/JJ
week/NN
./.
Milton/NNP
B./NNP
Hollander/NNP
,/,
60/CD
years/NNS
old/JJ
,/,
was/VBD
named/VBN
chief/JJ
executive/NN
officer/NN
,/,
succeeding/VBG
Barrett/NNP
B./NNP
Weekes/NNP
./.
Mr./NNP
Hollander/NNP
's/POS
Stamford/NNP
,/,
Conn.-based/JJ
High/NNP
Technology/NNP
Holding/NNP
Co./NNP
acquired/VBD
most/JJS
of/IN
its/PRP$
49.4/CD
%/NN
stake/NN
in/IN
Newport/NNP
in/IN
August/NNP
./.
Mr./NNP
Hollander/NNP
was/VBD
named/VBN
chairman/NN
last/JJ
week/NN
,/,
succeeding/VBG
Mr./NNP
Weekes/NNP
,/,
who/WP
was/VBD
among/IN
the/DT
ousted/VBN
directors/NNS
./.
The/DT
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discuss/VB
the/DT
changes/NNS
,/,
but/CC
Mr./NNP
Weekes/NNP
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Mr./NNP
Hollander/NNP
wanted/VBD
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his/PRP$
own/JJ
team/NN
./.
Scott/NNP
Wakeman/NNP
was/VBD
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operating/VBG
officer/NN
of/IN
U.S./NNP
operations/NNS
,/,
titles/NNS
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held/VBN
by/IN
Mr./NNP
Weekes/NNP
./.
Mr./NNP
Wakeman/NNP
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president/NN
of/IN
the/DT
instrument/NN
and/CC
controls/NNS
division/NN
of/IN
closely/RB
held/JJ
Omega/NNP
Engineering/NNP
Inc./NNP
,/,
another/DT
company/NN
controlled/VBN
by/IN
Mr./NNP
Hollander/NNP
./.
A/DT
company/NN
spokesman/NN
did/VBD
n't/RB
know/VB
Mr./NNP
Wakeman/NNP
's/POS
age/NN
./.
James/NNP
R./NNP
Lees/NNP
,/,
51/CD
,/,
vice/NN
president/NN
of/IN
Newport/NNP
's/POS
European/JJ
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,/,
was/VBD
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executive/NN
vice/NN
president/NN
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officer/NN
of/IN
European/JJ
operations/NNS
,/,
assuming/VBG
some/DT
former/JJ
duties/NNS
of/IN
Mr./NNP
Weekes/NNP
./.
Arthur/NNP
B./NNP
Crozier/NNP
,/,
34/CD
,/,
an/DT
attorney/NN
,/,
was/VBD
named/VBN
secretary/NN
,/,
succeeding/VBG
John/NNP
Virtue/NNP
,/,
who/WP
was/VBD
another/DT
of/IN
the/DT
ousted/VBN
directors/NNS
./.
UNIFIRST/NNP
Corp./NNP
declared/VBD
a/DT
2-for-1/JJ
stock/NN
split/NN
./.
The/DT
Wilmington/NNP
,/,
Mass./NNP
,/,
garment/NN
service/NN
company/NN
also/RB
boosted/VBD
its/PRP$
quarterly/JJ
dividend/NN
20/CD
%/NN
to/TO
three/CD
cents/NNS
a/DT
share/NN
adjusted/VBN
for/IN
the/DT
split/NN
./.
The/DT
dividend/NN
had/VBD
been/VBN
five/CD
cents/NNS
a/DT
share/NN
./.
The/DT
split/NN
and/CC
quarterly/JJ
dividend/NN
will/MD
be/VB
payable/JJ
Jan./NNP
3/CD
to/TO
stock/NN
of/IN
record/NN
Nov./NNP
16/CD
,/,
the/DT
company/NN
said/VBD
./.
The/DT
split/NN
will/MD
raise/VB
the/DT
number/NN
of/IN
shares/NNS
outstanding/JJ
to/TO
about/IN
10.2/CD
million/CD
./.
Separately/RB
,/,
UniFirst/NNP
reported/VBD
that/DT
net/JJ
income/NN
rose/VBD
21/CD
%/NN
to/TO
$/$
3/CD
million/CD
,/,
or/CC
29/CD
cents/NNS
a/DT
share/NN
adjusted/VBN
for/IN
the/DT
split/NN
,/,
for/IN
the/DT
fourth/JJ
quarter/NN
ended/VBN
Aug./NNP
26/CD
./.
A/DT
year/NN
earlier/RB
UniFirst/NNP
earned/VBD
$/$
2.4/CD
million/CD
,/,
or/CC
24/CD
cents/NNS
a/DT
share/NN
adjusted/VBN
for/IN
the/DT
split/NN
./.
Sales/NNS
rose/VBD
to/TO
$/$
52.4/CD
million/CD
from/IN
$/$
50.1/CD
million/CD
./.
Fibreboard/NNP
Corp./NNP
said/VBD
it/PRP
completed/VBD
the/DT
previously/RB
reported/JJ
sale/NN
of/IN
approximately/RB
27,500/CD
acres/NNS
of/IN
timberland/NN
near/IN
Truckee/NNP
,/,
Calif./NNP
,/,
to/TO
closely/RB
held/JJ
Sierra/NNP
Pacific/NNP
Industries/NNPS
Corp./NNP
,/,
Arcata/NNP
,/,
Calif./NNP
,/,
for/IN
$/$
32.5/CD
million/CD
./.
The/DT
lumber/NN
,/,
insulation/NN
and/CC
fireproofing/NN
concern/NN
said/VBD
the/DT
transaction/NN
,/,
which/WDT
includes/VBZ
a/DT
swap/NN
of/IN
other/JJ
timber/NN
interests/NNS
,/,
would/MD
result/VB
in/IN
a/DT
$/$
13.5/CD
million/CD
after-tax/JJ
gain/NN
,/,
to/TO
be/VB
recorded/VBN
in/IN
the/DT
fourth/JJ
quarter/NN
./.
Healthcare/NNP
International/NNP
Inc./NNP
said/VBD
it/PRP
reached/VBD
a/DT
120-day/JJ
standstill/NN
agreement/NN
with/IN
its/PRP$
HealthVest/NNP
affiliate/NN
calling/VBG
for/IN
Healthcare/NNP
to/TO
pay/VB
HealthVest/NNP
$/$
5/CD
million/CD
right/RB
away/RB
and/CC
additional/JJ
amounts/NNS
in/IN
the/DT
future/NN
./.
Under/IN
the/DT
agreement/NN
,/,
Healthcare/NNP
,/,
a/DT
manager/NN
of/IN
health-care/NN
facilities/NNS
,/,
said/VBD
it/PRP
would/MD
pay/VB
HealthVest/NNP
$/$
3.9/CD
million/CD
in/IN
overdue/JJ
rent/NN
and/CC
mortgage/NN
payments/NNS
and/CC
repay/VB
$/$
1.1/CD
million/CD
in/IN
funds/NNS
that/IN
HealthVest/NNP
advanced/VBD
for/IN
construction/NN
work/NN
on/IN
facilities/NNS
./.
In/IN
return/NN
,/,
HealthVest/NNP
agreed/VBD
that/IN
it/PRP
wo/MD
n't/RB
exercise/VB
its/PRP$
rights/NNS
and/CC
remedies/NNS
against/IN
Healthcare/NNP
during/IN
the/DT
120-day/JJ
period/NN
./.
After/IN
the/DT
payment/NN
,/,
Healthcare/NNP
still/RB
will/MD
be/VB
$/$
6.5/CD
million/CD
in/IN
arrears/NNS
on/IN
rent/NN
and/CC
mortgage/NN
payments/NNS
to/TO
HealthVest/NNP
,/,
a/DT
real/JJ
estate/NN
investment/NN
trust/NN
whose/WP$
portfolio/NN
consists/VBZ
largely/RB
of/IN
properties/NNS
operated/VBN
by/IN
Healthcare/NNP
./.
Healthcare/NNP
has/VBZ
given/VBN
HealthVest/NNP
a/DT
12/CD
%/NN
note/NN
for/IN
that/DT
overdue/JJ
amount/NN
,/,
to/TO
be/VB
repaid/VBN
over/IN
three/CD
years/NNS
./.
In/IN
addition/NN
,/,
Healthcare/NNP
agreed/VBD
to/TO
make/VB
monthly/JJ
rent/NN
and/CC
mortgage/NN
payments/NNS
of/IN
$/$
2.7/CD
million/CD
to/TO
$/$
3/CD
million/CD
to/TO
HealthVest/NNP
during/IN
the/DT
standstill/JJ
period/NN
,/,
to/TO
be/VB
paid/VBN
when/WRB
Healthcare/NNP
successfully/RB
completes/VBZ
asset/NN
sales/NNS
./.
Because/IN
Healthcare/NNP
actually/RB
owes/VBZ
HealthVest/NNP
$/$
4.2/CD
million/CD
in/IN
rent/NN
and/CC
mortgage/NN
payments/NNS
each/DT
month/NN
,/,
the/DT
amount/NN
due/JJ
above/IN
the/DT
amount/NN
paid/VBN
will/MD
be/VB
added/VBN
to/TO
the/DT
three-year/JJ
note/NN
./.
The/DT
funds/NNS
should/MD
help/VB
ease/VB
a/DT
cash/NN
bind/NN
at/IN
HealthVest/NNP
,/,
which/WDT
has/VBZ
been/VBN
unable/JJ
to/TO
pay/VB
its/PRP$
debts/NNS
because/IN
Healthcare/NNP
has/VBZ
n't/RB
made/VBD
complete/JJ
rent/NN
and/CC
mortgage/NN
payments/NNS
since/IN
July/NNP
./.
A/DT
spokesman/NN
said/VBD
HealthVest/NNP
has/VBZ
paid/VBN
two/CD
of/IN
the/DT
three/CD
banks/NNS
it/PRP
owed/VBD
interest/NN
to/TO
in/IN
October/NNP
and/CC
is/VBZ
in/IN
negotiations/NNS
with/IN
the/DT
third/JJ
bank/NN
./.
Healthcare/NNP
,/,
which/WDT
has/VBZ
been/VBN
in/IN
a/DT
severe/JJ
liquidity/NN
bind/NN
,/,
said/VBD
it/PRP
is/VBZ
able/JJ
to/TO
make/VB
the/DT
payments/NNS
because/IN
it/PRP
completed/VBD
a/DT
transaction/NN
with/IN
Greenery/NNP
Rehabilitation/NNP
Group/NNP
Inc./NNP
in/IN
which/WDT
Greenery/NNP
purchased/VBD
stock/NN
and/CC
warrants/NNS
for/IN
$/$
500,000/CD
and/CC
loaned/VBD
Healthcare/NNP
$/$
9/CD
million/CD
./.
The/DT
loan/NN
is/VBZ
backed/VBN
by/IN
Healthcare/NNP
's/POS
5.4/CD
%/NN
stake/NN
in/IN
HealthVest/NNP
and/CC
interest/NN
in/IN
certain/JJ
facilities/NNS
./.
I/PRP
was/VBD
pleased/JJ
to/TO
note/VB
that/DT
your/PRP$
Oct./NNP
23/CD
Centennial/NNP
Journal/NNP
item/NN
recognized/VBD
the/DT
money-fund/NN
concept/NN
as/IN
one/CD
of/IN
the/DT
significant/JJ
events/NNS
of/IN
the/DT
past/JJ
century/NN
./.
Actually/RB
,/,
about/IN
two/CD
years/NNS
ago/RB
,/,
the/DT
Journal/NNP
listed/VBD
the/DT
creation/NN
of/IN
the/DT
money/NN
fund/NN
as/IN
one/CD
of/IN
the/DT
10/CD
most/RBS
significant/JJ
events/NNS
in/IN
the/DT
world/NN
of/IN
finance/NN
in/IN
the/DT
20th/JJ
century/NN
./.
But/CC
the/DT
Reserve/NNP
Fund/NNP
,/,
America/NNP
's/POS
first/JJ
money/NN
fund/NN
,/,
was/VBD
not/RB
named/VBN
,/,
nor/CC
were/VBD
the/DT
creators/NNS
of/IN
the/DT
money-fund/NN
concept/NN
,/,
Harry/NNP
Brown/NNP
and/CC
myself/PRP
./.
We/PRP
innovated/VBD
telephone/NN
redemptions/NNS
,/,
daily/JJ
dividends/NNS
,/,
total/JJ
elimination/NN
of/IN
share/NN
certificates/NNS
and/CC
the/DT
constant/JJ
$/$
1/CD
pershare/JJ
pricing/NN
,/,
all/DT
of/IN
which/WDT
were/VBD
painfully/RB
thought/VBN
out/RB
and/CC
not/RB
the/DT
result/NN
of/IN
some/DT
inadvertence/NN
on/IN
the/DT
part/NN
of/IN
the/DT
SEC/NNP
./.
President/NN
The/DT
Reserve/NNP
Fund/NNP
New/JJ
York/NNP
The/DT
crowning/JJ
moment/NN
in/IN
the/DT
career/NN
of/IN
Joseph/NNP
F./NNP
O'Kicki/NNP
came/VBD
as/IN
300/CD
local/JJ
and/CC
state/NN
dignitaries/NNS
packed/VBD
into/IN
his/PRP$
elegant/JJ
,/,
marble-columned/JJ
courtroom/NN
here/RB
last/JJ
year/NN
for/IN
his/PRP$
swearing/NN
in/RB
as/IN
President/NNP
Judge/NNP
of/IN
Cambria/NNP
County/NNP
./.
Baskets/NNS
of/IN
roses/NNS
and/CC
potted/JJ
palms/NNS
adorned/VBD
his/PRP$
bench/NN
./.
The/DT
local/JJ
American/NNP
Legion/NNP
color/NN
guard/NN
led/VBD
the/DT
way/NN
./.
As/IN
the/DT
judge/NN
marched/VBD
down/IN
the/DT
center/JJ
aisle/NN
in/IN
his/PRP$
flowing/VBG
black/JJ
robe/NN
,/,
he/PRP
was/VBD
heralded/VBN
by/IN
a/DT
trumpet/NN
fanfare/NN
./.
To/TO
many/JJ
,/,
it/PRP
was/VBD
a/DT
ceremony/NN
more/RBR
befitting/JJ
a/DT
king/NN
than/IN
a/DT
rural/JJ
judge/NN
seated/VBN
in/IN
the/DT
isolated/JJ
foothills/NNS
of/IN
the/DT
southern/JJ
Allegheny/NNP
Mountains/NNPS
./.
But/CC
then/RB
Judge/NNP
O'Kicki/NNP
often/RB
behaved/VBD
like/IN
a/DT
man/NN
who/WP
would/MD
be/VB
king/NN
--/:
and/CC
,/,
some/DT
say/VBP
,/,
an/DT
arrogant/JJ
and/CC
abusive/JJ
one/NN
./.
While/IN
his/PRP$
case/NN
may/MD
be/VB
extreme/JJ
,/,
it/PRP
reflects/VBZ
the/DT
vulnerability/NN
of/IN
many/JJ
small/JJ
communities/NNS
to/TO
domineering/JJ
judges/NNS
./.
Last/JJ
March/NNP
,/,
nine/CD
months/NNS
after/IN
the/DT
judge/NN
's/POS
swearing-in/NN
,/,
the/DT
state/NN
attorney/NN
general/NN
's/POS
office/NN
indicted/VBD
him/PRP
on/IN
a/DT
sweeping/JJ
array/NN
of/IN
charges/NNS
alleging/VBG
more/JJR
than/IN
10/CD
years/NNS
of/IN
``/``
official/JJ
oppression/NN
''/''
in/IN
Cambria/NNP
County/NNP
,/,
a/DT
depressed/JJ
steel/NN
and/CC
mining/NN
community/NN
in/IN
western/JJ
Pennsylvania/NNP
./.
The/DT
allegations/NNS
,/,
ranging/VBG
from/IN
theft/NN
and/CC
bribery/NN
to/TO
coercion/NN
and/CC
lewdness/NN
,/,
paint/VBP
a/DT
disquieting/JJ
picture/NN
./.
According/VBG
to/TO
testimony/NN
in/IN
a/DT
public/NN
,/,
80-page/JJ
grand-jury/NN
report/NN
handed/VBD
up/RB
to/TO
the/DT
state/NN
attorney/NN
general/NN
,/,
Judge/NNP
O'Kicki/NNP
extorted/VBD
cash/NN
from/IN
lawyers/NNS
,/,
muscled/VBD
favorable/JJ
loans/NNS
from/IN
banks/NNS
and/CC
bullied/VBD
local/JJ
businesses/NNS
for/IN
more/JJR
than/IN
a/DT
decade/NN
./.
Prosecutors/NNS
,/,
in/IN
an/DT
indictment/NN
based/VBN
on/IN
the/DT
grand/JJ
jury/NN
's/POS
report/NN
,/,
maintain/VBP
that/IN
at/IN
various/JJ
times/NNS
since/IN
1975/CD
,/,
he/PRP
owned/VBD
a/DT
secret/JJ
and/CC
illegal/JJ
interest/NN
in/IN
a/DT
beer/NN
distributorship/NN
;/:
plotted/VBD
hidden/JJ
ownership/NN
interests/NNS
in/IN
real/JJ
estate/NN
that/WDT
presented/VBD
an/DT
alleged/JJ
conflict/NN
of/IN
interest/NN
;/:
set/VBN
up/RP
a/DT
dummy/JJ
corporation/NN
to/TO
buy/VB
a/DT
car/NN
and/CC
obtain/VB
insurance/NN
for/IN
his/PRP$
former/JJ
girlfriend/NN
his/PRP$
second/JJ
wife/NN
54/CD
accounts/NNS
in/IN
six/CD
banks/NNS
in/IN
Cambria/NNP
County/NNP
./.
In/IN
testimony/NN
recorded/VBN
in/IN
the/DT
grand/JJ
jury/NN
report/NN
,/,
court/NN
employees/NNS
said/VBD
the/DT
judge/NN
,/,
now/RB
59/CD
years/NNS
old/JJ
,/,
harassed/VBD
his/PRP$
secretaries/NNS
,/,
made/VBD
imperial/JJ
demands/NNS
on/IN
his/PRP$
staff/NN
and/CC
hounded/VBD
anyone/NN
who/WP
crossed/VBD
him/PRP
./.
Bailiffs/NNS
claimed/VBD
they/PRP
were/VBD
required/VBN
to/TO
chauffeur/VB
him/PRP
to/TO
and/CC
from/IN
work/NN
,/,
mow/VB
his/PRP$
lawn/NN
,/,
chop/VB
his/PRP$
wood/NN
,/,
fix/VB
his/PRP$
car/NN
and/CC
even/RB
drop/VB
by/IN
his/PRP$
house/NN
to/TO
feed/VB
his/PRP$
two/CD
grown/JJ
mutts/NNS
,/,
Dixie/NNP
and/CC
Husky/NNP
./.
One/CD
former/JJ
bailiff/NN
charged/VBD
that/IN
the/DT
judge/NN
double-crossed/VBD
him/PRP
by/IN
reneging/VBG
on/IN
a/DT
promise/NN
of/IN
a/DT
better/RBR
paying/JJ
job/NN
after/IN
pocketing/VBG
a/DT
$/$
500/CD
bribe/NN
./.
Some/DT
of/IN
the/DT
allegations/NNS
are/VBP
simply/RB
bizarre/JJ
./.
Two/CD
former/JJ
secretaries/NNS
told/VBD
the/DT
grand/JJ
jury/NN
they/PRP
were/VBD
summoned/VBN
to/TO
the/DT
judge/NN
's/POS
chambers/NNS
on/IN
separate/JJ
occasions/NNS
to/TO
take/VB
dictation/NN
,/,
only/RB
to/TO
find/VB
the/DT
judge/NN
in/IN
his/PRP$
bikini/NN
underwear/NN
./.
One/CD
secretary/NN
testified/VBD
that/IN
the/DT
judge/NN
once/RB
called/VBD
her/PRP
to/TO
his/PRP$
office/NN
while/IN
wearing/VBG
nothing/NN
at/IN
all/DT
./.
The/DT
judge/NN
,/,
suspended/VBN
from/IN
his/PRP$
bench/NN
pending/VBG
his/PRP$
trial/NN
,/,
which/WDT
began/VBD
this/DT
week/NN
,/,
vehemently/RB
denies/VBZ
all/PDT
the/DT
allegations/NNS
against/IN
him/PRP
,/,
calling/VBG
them/PRP
``/``
ludicrous/JJ
''/''
and/CC
``/``
imaginative/JJ
,/,
political/JJ
demagoguery/NN
./.
''/''
He/PRP
blames/VBZ
the/DT
indictment/NN
on/IN
local/JJ
political/JJ
feuding/NN
,/,
unhappiness/NN
with/IN
his/PRP$
aggressive/JJ
efforts/NNS
to/TO
clear/VB
the/DT
courthouse/NN
's/POS
docket/NN
and/CC
a/DT
vendetta/NN
by/IN
state/NN
investigators/NNS
and/CC
prosecutors/NNS
angered/VBN
by/IN
some/DT
of/IN
his/PRP$
rulings/NNS
against/IN
them/PRP
./.
``/``
I/PRP
do/VBP
n't/RB
know/VB
whose/WP$
toes/NNS
I/PRP
've/VBP
stepped/VBN
on/IN
,/,
''/''
says/VBZ
the/DT
judge/NN
./.
``/``
I/PRP
'll/MD
find/VB
out/RB
,/,
eventually/RB
,/,
who/WP
pushed/VBD
the/DT
state/NN
police/NN
buttons/NNS
into/IN
action/NN
./.
''/''
Even/RB
if/IN
only/RB
some/DT
of/IN
the/DT
allegations/NNS
stand/VBP
up/RP
,/,
however/RB
,/,
they/PRP
provide/VBP
ample/JJ
testimony/NN
to/TO
the/DT
awesome/JJ
power/NN
of/IN
judges/NNS
in/IN
rural/JJ
communities/NNS
./.
That/DT
power/NN
can/MD
sometimes/RB
be/VB
abused/JJ
,/,
particularly/RB
since/IN
jurists/NNS
in/IN
smaller/JJR
jurisdictions/NNS
operate/VBP
without/IN
many/JJ
of/IN
the/DT
restraints/NNS
that/WDT
serve/VBP
as/IN
corrective/JJ
measures/NNS
in/IN
urban/JJ
areas/NNS
./.
Lawyers/NNS
and/CC
their/PRP$
clients/NNS
who/WP
frequently/RB
bring/VBP
business/NN
to/TO
a/DT
country/NN
courthouse/NN
can/MD
expect/VB
to/TO
appear/VB
before/IN
the/DT
same/JJ
judge/NN
year/NN
after/IN
year/NN
./.
Fear/NN
of/IN
alienating/VBG
that/DT
judge/NN
is/VBZ
pervasive/JJ
,/,
says/VBZ
Maurice/NNP
Geiger/NNP
,/,
founder/NN
and/CC
director/NN
of/IN
the/DT
Rural/NNP
Justice/NNP
Center/NNP
in/IN
Montpelier/NNP
,/,
Vt./NNP
,/,
a/DT
public/JJ
interest/NN
group/NN
that/WDT
researches/VBZ
rural/JJ
justice/NN
issues/NNS
./.
As/IN
a/DT
result/NN
,/,
says/VBZ
Mr./NNP
Geiger/NNP
,/,
lawyers/NNS
think/VBP
twice/RB
before/RB
appealing/VBG
a/DT
judge/NN
's/POS
ruling/NN
,/,
are/VBP
reluctant/JJ
to/TO
mount/VB
,/,
or/CC
even/RB
support/VB
,/,
challenges/NNS
against/IN
him/PRP
for/IN
re-election/NN
and/CC
are/VBP
usually/RB
loath/JJ
to/TO
file/VB
complaints/NNS
that/WDT
might/MD
impugn/VB
a/DT
judge/NN
's/POS
integrity/NN
./.
Judge/NNP
O'Kicki/NNP
,/,
a/DT
stern/JJ
and/CC
forbidding-looking/JJ
man/NN
,/,
has/VBZ
been/VBN
a/DT
fixture/NN
in/IN
the/DT
local/JJ
legal/JJ
community/NN
for/IN
more/JJR
than/IN
two/CD
decades/NNS
./.
The/DT
son/NN
of/IN
an/DT
immigrant/JJ
stonemason/NN
of/IN
Slovenian/JJ
descent/NN
,/,
he/PRP
was/VBD
raised/VBN
in/IN
a/DT
small/JJ
borough/NN
outside/IN
Ebensburg/NNP
,/,
the/DT
Cambria/NNP
County/NNP
seat/NN
,/,
and/CC
put/VBD
himself/PRP
through/IN
the/DT
University/NNP
of/IN
Pittsburgh/NNP
Law/NNP
School/NNP
./.
He/PRP
graduated/VBD
near/IN
the/DT
top/NN
of/IN
his/PRP$
class/NN
,/,
serving/VBG
on/IN
the/DT
school/NN
law/NN
review/NN
with/IN
Richard/NNP
Thornburgh/NNP
,/,
who/WP
went/VBD
on/RB
to/TO
become/VB
governor/NN
of/IN
Pennsylvania/NNP
and/CC
,/,
now/RB
,/,
U.S./NNP
Attorney/NNP
General/NNP
./.
It/PRP
was/VBD
also/RB
in/IN
law/NN
school/NN
that/IN
Mr./NNP
O'Kicki/NNP
and/CC
his/PRP$
first/JJ
wife/NN
had/VBD
the/DT
first/JJ
of/IN
seven/CD
daughters/NNS
./.
He/PRP
divorced/VBD
his/PRP$
first/JJ
wife/NN
three/CD
years/NNS
ago/RB
and/CC
married/VBD
the/DT
daughter/NN
of/IN
his/PRP$
court/NN
clerk/NN
./.
Last/JJ
year/NN
,/,
Pennsylvania/NNP
Supreme/NNP
Court/NNP
Justice/NNP
John/NNP
P./NNP
Flaherty/NNP
called/VBD
Mr./NNP
O'Kicki/NNP
one/CD
of/IN
the/DT
finest/JJS
judges/NNS
``/``
not/RB
only/RB
in/IN
Pennsylvania/NNP
but/CC
in/IN
the/DT
United/NNP
States/NNPS
./.
''/''
Clearly/RB
,/,
the/DT
judge/NN
has/VBZ
had/VBN
his/PRP$
share/NN
of/IN
accomplishments/NNS
./.
After/IN
practicing/VBG
law/NN
locally/RB
,/,
he/PRP
was/VBD
elected/VBN
to/TO
his/PRP$
first/JJ
10-year/JJ
term/NN
as/IN
judge/NN
in/IN
1971/CD
;/:
in/IN
1981/CD
,/,
he/PRP
was/VBD
effectively/RB
re-elected/VBN
./.
Six/CD
years/NNS
ago/RB
,/,
Judge/NNP
O'Kicki/NNP
was/VBD
voted/VBN
president/NN
of/IN
the/DT
Pennsylvania/NNP
Conference/NNP
of/IN
State/NNP
Trial/NNP
Judges/NNP
by/IN
the/DT
state/NN
's/POS
400/CD
judges/NNS
./.
He/PRP
has/VBZ
been/VBN
considered/VBN
several/JJ
times/NNS
for/IN
appointments/NNS
to/TO
federal/JJ
district/NN
and/CC
appellate/JJ
court/NN
vacancies/NNS
in/IN
Pennsylvania/NNP
./.
And/CC
when/WRB
he/PRP
ran/VBD
unsuccessfully/RB
for/IN
a/DT
state/NN
appellate/JJ
court/NN
seat/NN
in/IN
1983/CD
,/,
the/DT
Pennsylvania/NNP
Bar/NNP
Association/NNP
rated/VBD
him/PRP
``/``
one/CD
of/IN
the/DT
best/RBS
available/JJ
,/,
''/''
after/IN
interviewing/VBG
local/JJ
lawyers/NNS
./.
``/``
He/PRP
probably/RB
was/VBD
the/DT
smartest/JJS
guy/NN
who/WP
ever/RB
sat/VBD
on/IN
our/PRP$
bench/NN
,/,
''/''
says/VBZ
a/DT
former/JJ
president/NN
of/IN
Cambria/NNP
County/NNP
's/POS
150-member/JJ
bar/NN
association/NN
,/,
who/WP
,/,
like/IN
most/JJS
lawyers/NNS
in/IN
Cambria/NNP
County/NNP
,/,
refuses/VBZ
to/TO
talk/VB
about/IN
the/DT
judge/NN
publicly/RB
./.
``/``
He/PRP
's/VBZ
sharp/JJ
as/IN
a/DT
tack/NN
./.
He/PRP
could/MD
grasp/VB
an/DT
issue/NN
with/IN
the/DT
blink/NN
of/IN
an/DT
eye/NN
./.
''/''
For/IN
more/JJR
than/IN
a/DT
decade/NN
,/,
virtually/RB
no/DT
one/NN
complained/VBD
about/IN
Judge/NNP
O'Kicki/NNP
./.
``/``
What/WP
about/IN
those/DT
institutions/NNS
that/WDT
are/VBP
supposed/VBN
to/TO
be/VB
the/DT
bedrock/NN
of/IN
society/NN
,/,
the/DT
banks/NNS
and/CC
the/DT
bar/NN
association/NN
.../:
?/.
''/''
wrote/VBD
a/DT
columnist/NN
for/IN
the/DT
Tribune-Democrat/NNP
,/,
a/DT
newspaper/NN
in/IN
nearby/JJ
Johnstown/NNP
,/,
shortly/RB
after/IN
the/DT
scandal/NN
became/VBD
public/JJ
./.
``/``
If/IN
only/RB
a/DT
banker/NN
or/CC
a/DT
lawyer/NN
had/VBD
spoken/VBN
out/RB
years/NNS
ago/RB
,/,
the/DT
judicial/JJ
process/NN
would/MD
n't/RB
be/VB
under/IN
the/DT
taint/NN
it/PRP
is/VBZ
today/NN
./.
''/''
Officials/NNS
with/IN
the/DT
Pennsylvania/NNP
Judicial/NNP
Inquiry/NNP
and/CC
Review/NNP
Board/NNP
,/,
the/DT
arm/NN
of/IN
the/DT
state/NN
that/WDT
investigates/VBZ
judicial/JJ
misconduct/NN
,/,
counter/VBP
that/IN
they/PRP
had/VBD
no/DT
inkling/NN
of/IN
anything/NN
amiss/JJ
in/IN
Ebensburg/NNP
./.
``/``
Nobody/NN
told/VBD
us/PRP
;/:
nobody/NN
called/VBD
us/PRP
,/,
''/''
says/VBZ
an/DT
official/JJ
close/NN
to/TO
the/DT
case/NN
who/WP
asked/VBD
not/RB
to/TO
be/VB
named/VBN
./.
``/``
Nobody/NN
had/VBD
the/DT
guts/NNS
to/TO
complain/VB
./.
''/''
Certainly/RB
not/RB
the/DT
lawyers/NNS
./.
Johnstown/NNP
attorney/NN
Richard/NNP
J./NNP
Green/NNP
Jr./NNP
shelled/VBD
out/RP
$/$
500/CD
in/IN
loans/NNS
to/TO
the/DT
judge/NN
over/IN
five/CD
years/NNS
,/,
he/PRP
said/VBD
in/IN
testimony/NN
to/TO
the/DT
grand/JJ
jury/NN
./.
``/``
The/DT
judge/NN
never/RB
made/VBD
a/DT
pretense/NN
of/IN
repaying/VBG
the/DT
money/NN
,/,
''/''
said/VBD
Mr./NNP
Green/NNP
./.
Eventually/RB
,/,
Mr./NNP
Green/NNP
testified/VBD
,/,
he/PRP
began/VBD
ducking/VBG
out/RB
of/IN
his/PRP$
office/NN
rather/RB
than/IN
face/VB
the/DT
judge/NN
when/WRB
he/PRP
visited/VBD
./.
When/WRB
Mr./NNP
Green/NNP
won/VBD
a/DT
$/$
240,000/CD
verdict/NN
in/IN
a/DT
land/NN
condemnation/NN
case/NN
against/IN
the/DT
state/NN
in/IN
June/NNP
1983/CD
,/,
he/PRP
says/VBZ
Judge/NNP
O'Kicki/NNP
unexpectedly/RB
awarded/VBD
him/PRP
an/DT
additional/JJ
$/$
100,000/CD
./.
Mr./NNP
Green/NNP
thought/VBD
little/RB
of/IN
it/PRP
,/,
he/PRP
told/VBD
the/DT
grand/JJ
jury/NN
,/,
until/IN
the/DT
judge/NN
walked/VBD
up/RB
to/TO
him/PRP
after/IN
the/DT
courtroom/NN
had/VBD
cleared/VBN
and/CC
suggested/VBD
a/DT
kickback/NN
./.
``/``
Do/VBP
n't/RB
you/PRP
think/VB
I/PRP
ought/MD
to/TO
get/VB
a/DT
commission/NN
.../:
or/CC
part/NN
of/IN
your/PRP$
fee/NN
in/IN
this/DT
case/NN
?/.
''/''
Mr./NNP
Green/NNP
said/VBD
the/DT
judge/NN
asked/VBD
him/PRP
./.
Appalled/JJ
,/,
Mr./NNP
Green/NNP
never/RB
paid/VBD
the/DT
money/NN
,/,
he/PRP
testified/VBD
./.
But/CC
he/PRP
did/VBD
n't/RB
complain/VB
to/TO
the/DT
state/NN
's/POS
Judicial/NNP
Inquiry/NNP
and/CC
Review/NNP
Board/NNP
,/,
either/RB
,/,
saying/VBG
later/RBR
that/IN
he/PRP
feared/VBD
retribution/NN
./.
Mr./NNP
O'Kicki/NNP
said/VBD
he/PRP
will/MD
respond/VB
to/TO
Mr./NNP
Green/NNP
's/POS
allegation/NN
at/IN
his/PRP$
trial/NN
./.
Like/IN
most/JJS
of/IN
Cambria/NNP
County/NNP
's/POS
lawyers/NNS
and/CC
residents/NNS
who/WP
had/VBD
dealings/NNS
with/IN
the/DT
judge/NN
,/,
Mr./NNP
Green/NNP
declined/VBD
to/TO
be/VB
interviewed/VBN
for/IN
this/DT
article/NN
./.
And/CC
no/DT
one/NN
with/IN
a/DT
complaint/NN
about/IN
the/DT
judge/NN
would/MD
allow/VB
his/PRP$
name/NN
to/TO
be/VB
printed/VBN
./.
``/``
I/PRP
do/VBP
n't/RB
have/VB
anything/NN
much/JJ
to/TO
say/VB
,/,
and/CC
I/PRP
think/VBP
that/DT
's/VBZ
what/WP
you/PRP
're/VBP
going/VBG
to/TO
find/VB
from/IN
everyone/NN
else/RB
you/PRP
talk/VBP
to/TO
up/RB
here/RB
,/,
''/''
says/VBZ
local/JJ
attorney/NN
Edward/NNP
F./NNP
Peduzzi/NNP
./.
Says/VBZ
another/DT
lawyer/NN
:/:
``/``
The/DT
practice/NN
of/IN
law/NN
is/VBZ
a/DT
matter/NN
of/IN
biting/VBG
one/PRP
's/POS
lip/NN
when/WRB
you/PRP
live/VBP
in/IN
a/DT
small/JJ
community/NN
./.
One/PRP
had/VBD
best/RBS
not/RB
dance/VB
on/IN
top/NN
of/IN
a/DT
coffin/NN
until/IN
the/DT
lid/NN
is/VBZ
sealed/VBN
tightly/RB
shut/VBN
./.
''/''
The/DT
judge/NN
was/VBD
considered/VBN
imperious/JJ
,/,
abrasive/JJ
and/CC
ambitious/JJ
,/,
those/DT
who/WP
practiced/VBD
before/IN
him/PRP
say/VBP
./.
He/PRP
sipped/VBD
tea/NN
sweetened/JJ
with/IN
honey/NN
from/IN
his/PRP$
high-backed/JJ
leather/NN
chair/NN
at/IN
his/PRP$
bench/NN
,/,
while/IN
scribbling/VBG
notes/NNS
ordering/VBG
spectators/NNS
to/TO
stop/VB
whispering/NN
or/CC
to/TO
take/VB
off/RP
their/PRP$
hats/NNS
in/IN
his/PRP$
courtroom/NN
./.
Four/CD
years/NNS
ago/RB
,/,
he/PRP
jailed/VBD
all/DT
nine/CD
members/NNS
of/IN
the/DT
Cambria/NNP
County/NNP
School/NNP
Board/NNP
for/IN
several/JJ
hours/NNS
after/IN
they/PRP
defied/VBD
his/PRP$
order/NN
to/TO
extend/VB
the/DT
school/NN
year/NN
by/IN
several/JJ
weeks/NNS
to/TO
make/VB
up/RB
for/IN
time/NN
lost/VBN
during/IN
a/DT
teachers/NNS
'/POS
strike/NN
./.
Visitors/NNS
in/IN
his/PRP$
chambers/NNS
say/VBP
he/PRP
could/MD
cite/VB
precisely/RB
the/DT
years/NNS
,/,
months/NNS
,/,
weeks/NNS
and/CC
days/NNS
remaining/VBG
until/IN
mandatory/JJ
retirement/NN
would/MD
force/VB
aside/RB
the/DT
presiding/VBG
president/NN
judge/NN
,/,
giving/VBG
Judge/NNP
O'Kicki/NNP
the/DT
seniority/NN
required/VBN
to/TO
take/VB
over/RB
as/IN
the/DT
county/NN
's/POS
top/JJ
court/NN
administrator/NN
./.
The/DT
judge/NN
,/,
they/PRP
say/VBP
,/,
was/VBD
fiercely/RB
proud/JJ
of/IN
his/PRP$
abilities/NNS
and/CC
accomplishments/NNS
./.
``/``
My/PRP$
name/NN
is/VBZ
judge/NN
,/,
''/''
Judge/NNP
O'Kicki/NNP
told/VBD
a/DT
car/NN
salesman/NN
in/IN
Ebensburg/NN
when/WRB
he/PRP
bought/VBD
a/DT
new/JJ
red/JJ
Pontiac/NNP
Sunbird/NNP
in/IN
October/NNP
1984/CD
,/,
according/VBG
to/TO
the/DT
grand-jury/JJ
report/NN
./.
The/DT
dealership/NN
dutifully/RB
recorded/VBD
the/DT
sale/NN
under/IN
the/DT
name/NN
``/``
Judge/NNP
O'Kicki/NNP
./.
''/''
Yet/RB
,/,
despite/IN
the/DT
judge/NN
's/POS
imperial/JJ
bearing/NN
,/,
no/DT
one/NN
ever/RB
had/VBD
reason/NN
to/TO
suspect/VB
possible/JJ
wrongdoing/NN
,/,
says/VBZ
John/NNP
Bognato/NNP
,/,
president/NN
of/IN
Cambria/NNP
County/NNP
's/POS
150-member/JJ
bar/NN
association/NN
./.
``/``
The/DT
arrogance/NN
of/IN
a/DT
judge/NN
,/,
his/PRP$
demeanor/NN
,/,
the/DT
way/NN
he/PRP
handles/VBZ
people/NNS
are/VBP
not/RB
a/DT
basis/NN
for/IN
filing/VBG
a/DT
complaint/NN
,/,
''/''
says/VBZ
Mr./NNP
Bognato/NNP
./.
``/``
Until/IN
this/DT
came/VBD
up/RB
and/CC
hit/VB
the/DT
press/NN
,/,
there/EX
was/VBD
never/RB
any/DT
indication/NN
that/IN
he/PRP
was/VBD
doing/VBG
anything/NN
wrong/JJ
./.
''/''
State/NN
investigators/NNS
dispute/VBP
that/DT
view/NN
now/RB
,/,
particularly/RB
in/IN
light/NN
of/IN
the/DT
judge/NN
's/POS
various/JJ
business/NN
dealings/NNS
in/IN
Cambria/NNP
County/NNP
./.
The/DT
judge/NN
came/VBD
under/IN
scrutiny/NN
in/IN
late/JJ
1987/CD
,/,
after/IN
the/DT
state/NN
attorney/NN
general/NN
's/POS
office/NN
launched/VBD
an/DT
unrelated/JJ
investigation/NN
into/IN
corruption/NN
in/IN
Cambria/NNP
County/NNP
./.
The/DT
inquiry/NN
soon/RB
focused/VBD
on/IN
the/DT
judge/NN
./.
Even/RB
his/PRP$
routine/JJ
business/NN
transactions/NNS
caused/VBD
trouble/NN
,/,
according/VBG
to/TO
the/DT
grand/JJ
jury/NN
report/NN
./.
When/WRB
the/DT
judge/NN
bought/VBD
his/PRP$
new/JJ
Sunbird/NNP
from/IN
James/NNP
E./NNP
Black/NNP
Pontiac-Cadillac/NNP
in/IN
Ebensburg/NNP
five/CD
years/NNS
ago/RB
,/,
the/DT
dealership/NN
had/VBD
``/``
certain/JJ
apprehensions/NNS
''/''
about/IN
the/DT
judge/NN
's/POS
reputation/NN
,/,
according/VBG
to/TO
the/DT
grand-jury/JJ
report/NN
./.
The/DT
dealership/NN
took/VBD
the/DT
extra/JJ
step/NN
of/IN
having/VBG
all/PDT
the/DT
paper/NN
work/NN
for/IN
the/DT
transaction/NN
pre-approved/VBN
by/IN
Ebensburg/NNP
's/POS
local/JJ
lender/NN
,/,
Laurel/NNP
Bank/NNP
./.
Then/RB
,/,
as/IN
an/DT
additional/JJ
precaution/NN
,/,
the/DT
car/NN
dealership/NN
took/VBD
the/DT
judge/NN
's/POS
photograph/NN
as/IN
he/PRP
stood/VBD
next/JJ
to/TO
his/PRP$
new/JJ
car/NN
with/IN
sales/NNS
papers/NNS
in/IN
hand/NN
--/:
proof/NN
that/IN
he/PRP
had/VBD
received/VBN
the/DT
loan/NN
documents/NNS
./.
But/CC
when/WRB
the/DT
judge/NN
received/VBD
his/PRP$
payment/NN
book/NN
,/,
he/PRP
disavowed/VBD
the/DT
deal/NN
./.
``/``
There/EX
was/VBD
no/DT
loan/NN
,/,
there/EX
is/VBZ
no/DT
loan/NN
,/,
there/EX
never/RB
shall/MD
be/VB
a/DT
loan/NN
,/,
''/''
the/DT
judge/NN
wrote/VBD
the/DT
bank/NN
on/IN
his/PRP$
judicial/JJ
stationery/NN
,/,
according/VBG
to/TO
the/DT
report/NN
./.
Later/RBR
,/,
the/DT
judge/NN
went/VBD
a/DT
step/NN
farther/RB
./.
After/IN
Laurel/NNP
Bank/NNP
tried/VBD
to/TO
repossess/VB
the/DT
car/NN
,/,
a/DT
vice/NN
president/NN
asked/VBD
him/PRP
to/TO
intervene/VB
in/IN
an/DT
unrelated/JJ
legal/JJ
dispute/NN
involving/VBG
a/DT
trust/NN
account/NN
./.
The/DT
judge/NN
wrote/VBD
again/RB
./.
``/``
I/PRP
find/VBP
myself/PRP
in/IN
an/DT
adversary/NN
relationship/NN
with/IN
Laurel/NNP
Bank/NNP
,/,
and/CC
I/PRP
am/VBP
not/RB
inclined/JJ
to/TO
extend/VB
myself/PRP
as/RB
far/RB
as/IN
any/DT
favors/NNS
are/VBP
concerned/VBN
,/,
''/''
the/DT
judge/NN
wrote/VBD
back/RB
in/IN
a/DT
letter/NN
attached/VBN
to/TO
the/DT
grand/JJ
jury/NN
's/POS
report/NN
./.
``/``
Perhaps/RB
if/IN
my/PRP$
personal/JJ
matters/NNS
can/MD
be/VB
resolved/VBN
with/IN
Laurel/NNP
bank/NN
in/IN
the/DT
near/JJ
future/NN
,/,
I/PRP
may/MD
be/VB
inclined/VBN
to/TO
reconsider/VB
your/PRP$
request/NN
.../:
./.
''/''
The/DT
judge/NN
now/RB
says/VBZ
it/PRP
was/VBD
``/``
unfortunate/JJ
''/''
that/IN
he/PRP
chose/VBD
to/TO
write/VB
the/DT
letter/NN
but/CC
says/VBZ
``/``
there/EX
was/VBD
certainly/RB
no/RB
intent/NN
to/TO
extort/VB
there/RB
./.
''/''
The/DT
bank/NN
acquiesced/VBD
./.
It/PRP
refinanced/VBD
the/DT
judge/NN
's/POS
loan/NN
,/,
lowered/VBD
its/PRP$
interest/NN
rate/NN
and/CC
accepted/VBD
a/DT
trade-in/NN
that/WDT
had/VBD
n't/RB
originally/RB
been/VBN
part/NN
of/IN
the/DT
deal/NN
--/:
a/DT
beat/JJ
up/JJ
1981/CD
Chevy/NNP
Citation/NNP
the/DT
dealer/NN
had/VBD
to/TO
repair/VB
before/IN
it/PRP
could/MD
be/VB
resold/VBN
./.
The/DT
incident/NN
was/VBD
n't/RB
the/DT
only/JJ
time/NN
the/DT
judge/NN
got/VBD
special/JJ
treatment/NN
from/IN
his/PRP$
local/JJ
bank/NN
./.
Two/CD
years/NNS
later/RB
,/,
he/PRP
wrote/VBD
to/TO
complain/VB
that/IN
the/DT
interest/NN
he/PRP
was/VBD
paying/VBG
on/IN
an/DT
unsecured/JJ
$/$
10,000/CD
loan/NN
was/VBD
``/``
absolutely/RB
onerous/JJ
./.
''/''
Paul/NNP
L./NNP
Kane/NNP
,/,
Laurel/NNP
's/POS
president/NN
at/IN
the/DT
time/NN
,/,
quickly/RB
responded/VBD
./.
The/DT
bank/NN
,/,
he/PRP
wrote/VBD
back/RB
,/,
was/VBD
``/``
immediately/RB
''/''
lowering/VBG
the/DT
rate/NN
by/IN
3.5/CD
%/NN
,/,
``/``
as/IN
a/DT
concession/NN
to/TO
you/PRP
./.
''/''
The/DT
judge/NN
says/VBZ
he/PRP
ca/MD
n't/RB
discuss/VB
in/IN
detail/NN
how/WRB
he/PRP
will/MD
defend/VB
himself/PRP
at/IN
his/PRP$
trial/NN
,/,
although/IN
he/PRP
contends/VBZ
that/IN
if/IN
he/PRP
were/VBD
as/RB
corrupt/JJ
as/IN
state/NN
prosecutors/NNS
believe/VBP
,/,
he/PRP
would/MD
be/VB
far/RB
wealthier/JJR
than/IN
he/PRP
is/VBZ
./.
His/PRP$
seven-bedroom/JJ
cedar/NN
and/CC
brick/NN
house/NN
outside/IN
of/IN
Johnstown/NNP
is/VBZ
up/RB
for/IN
sale/NN
to/TO
pay/VB
for/IN
his/PRP$
lawyers/NNS
./.
The/DT
judge/NN
says/VBZ
he/PRP
is/VBZ
confident/JJ
he/PRP
will/MD
return/VB
to/TO
his/PRP$
old/JJ
bench/NN
./.
Already/RB
,/,
he/PRP
notes/VBZ
,/,
the/DT
76/CD
charges/NNS
originally/RB
filed/VBN
against/IN
him/PRP
have/VBP
been/VBN
trimmed/VBN
to/TO
27/CD
./.
Most/JJS
of/IN
the/DT
allegations/NNS
no/RB
longer/RB
pending/VBG
were/VBD
ethics/NNS
charges/NNS
withdrawn/VBN
by/IN
state/NN
prosecutors/NNS
as/IN
part/NN
of/IN
a/DT
pre-trial/JJ
agreement/NN
./.
The/DT
heart/NN
of/IN
the/DT
case/NN
--/:
``/``
official/JJ
oppression/NN
''/''
--/:
remains/VBZ
intact/JJ
./.
``/``
If/IN
I/PRP
lose/VBP
,/,
I/PRP
lose/VBP
my/PRP$
position/NN
,/,
my/PRP$
career/NN
,/,
my/PRP$
pension/NN
,/,
my/PRP$
home/NN
and/CC
my/PRP$
investments/NNS
,/,
''/''
says/VBZ
the/DT
judge/NN
./.
``/``
My/PRP$
God/NNP
and/CC
I/PRP
know/VBP
I/PRP
am/VBP
correct/JJ
and/CC
innocent/JJ
./.
''/''
Many/JJ
thanks/NNS
for/IN
Alexander/NNP
Cockburn/NNP
's/POS
comic/JJ
masterpiece/NN
``/``
U.S/NNP
./.
Economy/NN
:/:
A/DT
House/NN
Built/VBN
on/IN
Junk-Bond/NN
Sand/NN
,/,
''/''
Viewpoint/NN
,/,
Oct./NNP
19/CD
The/DT
use/NN
of/IN
the/DT
abominable/JJ
construction/NN
practices/NNS
in/IN
the/DT
Soviet/NNP
Union/NNP
--/:
as/IN
evidenced/VBN
by/IN
the/DT
collapse/NN
of/IN
sand/NN
apartment/NN
blocks/NNS
during/IN
the/DT
Armenian/JJ
earthquake/NN
--/:
as/IN
a/DT
metaphor/NN
for/IN
the/DT
U.S./NNP
economic/JJ
system/NN
was/VBD
a/DT
sublime/JJ
example/NN
of/IN
Mr./NNP
Cockburn/NNP
's/POS
satirical/JJ
muse/NN
./.
I/PRP
await/VBP
his/PRP$
sequel/NN
:/:
the/DT
economic/JJ
and/CC
social/JJ
resiliency/NN
of/IN
the/DT
San/NNP
Francisco/NNP
Bay/NNP
area/NN
and/CC
the/DT
outstanding/JJ
work/NN
of/IN
the/DT
local/JJ
governments/NNS
and/CC
the/DT
private/JJ
charitable/JJ
organizations/NNS
there/RB
as/IN
metaphors/NNS
for/IN
the/DT
supremacy/NN
of/IN
whatever/WDT
failed/JJ
system/NN
Mr./NNP
Cockburn/NNP
now/RB
believes/VBZ
in/IN
./.
It/PRP
should/MD
be/VB
a/DT
scream/NN
./.
William/NNP
S./NNP
Smith/NNP
Los/NNP
Angeles/NNP
As/IN
a/DT
money/NN
manager/NN
and/CC
a/DT
grass-roots/JJ
environmentalist/NN
,/,
I/PRP
was/VBD
very/RB
disappointed/JJ
to/TO
read/VB
in/IN
the/DT
premiere/JJ
issue/NN
of/IN
Garbage/NNP
that/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
uses/VBZ
220,000/CD
metric/JJ
tons/NNS
of/IN
newsprint/NN
each/DT
year/NN
,/,
but/CC
that/IN
only/RB
1.4/CD
%/NN
of/IN
it/PRP
comes/VBZ
from/IN
recycled/JJ
paper/NN
./.
By/IN
contrast/NN
,/,
the/DT
Los/NNP
Angeles/NNP
Times/NNP
,/,
for/IN
example/NN
,/,
uses/VBZ
83/CD
%/NN
recycled/JJ
paper/NN
./.
With/IN
newspapers/NNS
being/VBG
the/DT
largest/JJS
single/JJ
component/NN
of/IN
solid/JJ
waste/NN
in/IN
our/PRP$
landfills/NNS
,/,
and/CC
with/IN
our/PRP$
country/NN
overflowing/VBG
with/IN
trash/NN
,/,
all/DT
sectors/NNS
of/IN
our/PRP$
society/NN
and/CC
all/DT
types/NNS
of/IN
businesses/NNS
must/MD
become/VB
more/RBR
responsible/JJ
in/IN
our/PRP$
use/NN
and/CC
disposal/NN
of/IN
precious/JJ
natural/JJ
resources/NNS
./.
The/DT
Wall/NNP
Street/NNP
Journal/NNP
is/VBZ
an/DT
excellent/JJ
publication/NN
that/IN
I/PRP
enjoy/VBP
reading/VBG
(/(
and/CC
must/MD
read/VB
)/)
daily/RB
./.
Please/VB
make/VB
me/PRP
and/CC
thousands/NNS
of/IN
other/JJ
readers/NNS
more/RBR
comfortable/JJ
with/IN
our/PRP$
daily/JJ
purchase/NN
of/IN
your/PRP$
newspaper/NN
by/IN
raising/VBG
your/PRP$
environmental/JJ
standards/NNS
to/TO
your/PRP$
overall/JJ
impeccable/JJ
quality/NN
levels/NNS
,/,
and/CC
increase/VB
your/PRP$
use/NN
of/IN
recycled/JJ
paper/NN
./.
Virginia/NNP
M.W./NNP
Gardiner/NNP
Philadelphia/NNP
FIRST/NNP
AMERICAN/NNP
FINANCIAL/NNP
Corp./NNP
declared/VBD
a/DT
special/JJ
dividend/NN
of/IN
one/CD
share/NN
of/IN
Class/NN
B/NNP
common/JJ
stock/NN
for/IN
each/DT
share/NN
of/IN
Class/NN
A/NNP
common/JJ
stock/NN
,/,
payable/JJ
to/TO
holders/NNS
of/IN
record/NN
on/IN
Nov./NNP
10/CD
if/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
approves/VBZ
this/DT
as/IN
the/DT
effective/JJ
date/NN
of/IN
the/DT
registration/NN
statement/NN
./.
Shareholders/NNS
of/IN
the/DT
Santa/NNP
Ana/NNP
,/,
Calif./NNP
,/,
title-insurance/JJ
company/NN
approved/VBD
the/DT
creation/NN
of/IN
this/DT
second/JJ
class/NN
of/IN
stock/NN
,/,
which/WDT
will/MD
be/VB
traded/VBN
on/IN
the/DT
national/JJ
over-the-counter/JJ
market/NN
and/CC
which/WDT
the/DT
company/NN
said/VBD
would/MD
be/VB
used/VBN
for/IN
acquisitions/NNS
and/CC
other/JJ
general/JJ
corporate/JJ
purposes/NNS
./.
The/DT
following/JJ
were/VBD
among/IN
yesterday/NN
's/POS
offerings/NNS
and/CC
pricings/NNS
in/IN
the/DT
U.S./NNP
and/CC
non-U.S./JJ
capital/NN
markets/NNS
,/,
with/IN
terms/NNS
and/CC
syndicate/NN
manager/NN
,/,
as/IN
compiled/VBN
by/IN
Dow/NNP
Jones/NNP
Capital/NNP
Markets/NNPS
Report/NNP
:/:
Continental/NNP
Cablevision/NNP
Inc./NNP
--/:
$/$
350/CD
million/CD
of/IN
senior/JJ
subordinated/JJ
debentures/NNS
,/,
due/JJ
Nov./NNP
1/CD
,/,
2004/CD
,/,
was/VBD
priced/VBN
at/IN
par/JJ
to/TO
yield/VB
12/CD
7\/8/CD
%/NN
./.
Rated/VBN
single-B-1/JJ
by/IN
Moody/NNP
's/POS
Investors/NNPS
Service/NNP
Inc./NNP
and/CC
single-B/JJ
by/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NN
,/,
the/DT
issue/NN
,/,
which/WDT
is/VBZ
non-callable/JJ
for/IN
five/CD
years/NNS
,/,
will/MD
be/VB
sold/VBN
through/IN
underwriters/NNS
led/VBN
by/IN
Morgan/NNP
Stanley/NNP
&/CC
Co/NNP
./.
Beatrice/NNP
Co./NNP
--/:
$/$
251/CD
million/CD
of/IN
notes/NNS
,/,
due/JJ
Nov./NNP
1/CD
,/,
1997/CD
,/,
was/VBD
priced/VBN
in/IN
a/DT
two-part/JJ
offering/NN
through/IN
underwriters/NNS
at/IN
Salomon/NNP
Brothers/NNPS
Inc/NNP
./.
The/DT
size/NN
of/IN
the/DT
issue/NN
was/VBD
scaled/VBN
back/RB
from/IN
an/DT
originally/RB
planned/VBN
$/$
350/CD
million/CD
./.
The/DT
first/JJ
part/NN
,/,
consisting/VBG
of/IN
$/$
151/CD
million/CD
of/IN
13/CD
3\/4/CD
%/NN
senior/JJ
subordinated/JJ
reset/JJ
notes/NNS
,/,
was/VBD
priced/VBN
at/IN
99.75/CD
./.
The/DT
rate/NN
on/IN
the/DT
notes/NNS
will/MD
be/VB
reset/VB
annually/RB
to/TO
give/VB
the/DT
issue/NN
a/DT
market/NN
value/NN
of/IN
101/CD
./.
However/RB
,/,
the/DT
maximum/NN
coupon/NN
at/IN
which/WDT
the/DT
notes/NNS
can/MD
be/VB
reset/VB
is/VBZ
16/CD
1\/4/CD
%/NN
./.
The/DT
minimum/JJ
coupon/NN
is/VBZ
13/CD
3\/4/CD
%/NN
./.
The/DT
second/JJ
part/NN
,/,
consisting/VBG
of/IN
$/$
100/CD
million/CD
of/IN
senior/JJ
subordinated/JJ
floating-rate/JJ
notes/NNS
,/,
was/VBD
priced/VBN
at/IN
99/CD
3\/4/CD
to/TO
float/VB
4.25/CD
%/NN
above/IN
the/DT
three-month/JJ
London/NNP
interbank/NN
offered/JJ
rate/NN
./.
The/DT
initial/JJ
coupon/NN
on/IN
the/DT
floating-rate/JJ
notes/NNS
will/MD
be/VB
12.9375/CD
%/NN
./.
The/DT
issue/NN
is/VBZ
rated/VBN
single-B-3/JJ
by/IN
Moody/NNP
's/POS
and/CC
single-B-plus/JJ
by/IN
S&P/NNP
./.
New/NNP
Jersey/NNP
Wastewater/NNP
Treatment/NNP
Trust/NNP
--/:
$/$
75.1/CD
million/CD
,/,
two-part/JJ
offering/NN
of/IN
bonds/NNS
apparently/RB
was/VBD
won/VBN
by/IN
a/DT
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNPS
group/NN
./.
The/DT
group/NN
's/POS
bid/NN
for/IN
$/$
40.9/CD
million/CD
of/IN
wastewater/NN
treatment/NN
insured/JJ
bonds/NNS
,/,
Series/NN
1989/CD
A/NNP
,/,
produced/VBD
a/DT
7.0826/CD
%/NN
true/JJ
interest/NN
cost/NN
./.
The/DT
Series/NN
1989/CD
A/NNP
bonds/NNS
are/VBP
insured/JJ
and/CC
rated/VBN
triple-A/JJ
by/IN
Moody/NNP
's/POS
and/CC
S&P/NNP
./.
The/DT
group/NN
's/POS
bid/NN
for/IN
$/$
34.2/CD
million/CD
of/IN
wastewater/NN
treatment/NN
bonds/NNS
,/,
Series/NN
1989/CD
B/NNP
,/,
produced/VBD
a/DT
7.0808/CD
%/NN
true/JJ
interest/NN
cost/NN
./.
The/DT
Series/NN
1989/CD
B/NNP
bonds/NNS
are/VBP
uninsured/JJ
and/CC
rated/VBN
double-A/JJ
by/IN
Moody/NNP
's/POS
and/CC
S&P/NNP
./.
Both/DT
the/DT
Series/NN
1989/CD
A/NNP
and/CC
Series/NNP
1989/CD
B/NNP
bonds/NNS
were/VBD
priced/VBN
to/TO
yield/VB
from/IN
6/CD
%/NN
in/IN
1991/CD
to/TO
7.15/CD
%/NN
in/IN
2008-2009/CD
,/,
according/VBG
to/TO
a/DT
Merrill/NNP
Lynch/NNP
official/NN
./.
Matagorda/NNP
County/NNP
Navigation/NNP
District/NNP
No./NNP
1/CD
,/,
Texas/NNP
--/:
$/$
70.3/CD
million/CD
of/IN
pollution/NN
control/NN
revenue/NN
bonds/NNS
Houston/NNP
Lighting/NNP
&/CC
Power/NNP
Co/NNP
./.
Project/NN
due/JJ
Oct./NNP
1/CD
,/,
2019/CD
,/,
were/VBD
tentatively/RB
priced/VBN
by/IN
a/DT
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
group/NN
at/IN
98/CD
1\/4/CD
to/TO
yield/VB
7.649/CD
%/NN
with/IN
a/DT
coupon/NN
of/IN
7/CD
1\/2/CD
%/NN
./.
Interest/NN
on/IN
the/DT
bonds/NNS
will/MD
be/VB
treated/VBN
as/IN
a/DT
preference/NN
item/NN
in/IN
calculating/VBG
the/DT
federal/JJ
alternative/NN
minimum/JJ|NN
tax/NN
that/WDT
may/MD
be/VB
imposed/VBN
on/IN
certain/JJ
investors/NNS
./.
The/DT
bonds/NNS
are/VBP
insured/JJ
and/CC
rated/VBN
triple-A/JJ
by/IN
Moody/NNP
's/POS
and/CC
S&P/NNP
./.
Federal/NNP
Home/NNP
Loan/NNP
Mortgage/NNP
Corp./NNP
--/:
$/$
500/CD
million/CD
of/IN
Remic/NNP
mortgage/NN
securities/NNS
is/VBZ
being/VBG
offered/VBN
in/IN
11/CD
classes/NNS
by/IN
a/DT
Morgan/NNP
Stanley/NNP
group/NN
./.
The/DT
offering/NN
,/,
Series/NNP
109/CD
,/,
is/VBZ
backed/VBN
by/IN
Freddie/NNP
Mac/NNP
10/CD
%/NN
securities/NNS
./.
Complete/JJ
details/NNS
were/VBD
n't/RB
immediately/RB
available/JJ
./.
Lomas/NNP
Mortgage/NNP
Funding/NNP
Corp./NNP
II/NNP
--/:
$/$
100/CD
million/CD
issue/NN
of/IN
collateralized/JJ
mortgage/NN
obligations/NNS
is/VBZ
being/VBG
offered/VBN
in/IN
four/CD
classes/NNS
by/IN
a/DT
Morgan/NNP
Stanley/NNP
group/NN
./.
The/DT
securities/NNS
yield/VBP
from/IN
9.35/CD
%/NN
to/TO
10.48/CD
%/NN
for/IN
a/DT
30-year/JJ
issue/NN
with/IN
an/DT
average/JJ
life/NN
of/IN
21.18/CD
years/NNS
./.
The/DT
10.48/CD
%/NN
yield/NN
represents/VBZ
a/DT
spread/NN
to/TO
the/DT
20-year/JJ
Treasury/NNP
of/IN
2.45/CD
percentage/NN
points/NNS
./.
The/DT
collateral/NN
consists/VBZ
of/IN
collateralized/JJ
whole/JJ
loans/NNS
with/IN
a/DT
weighted/JJ
average/JJ
coupon/NN
rate/NN
of/IN
11.08/CD
%/NN
and/CC
weighted/JJ
average/NN
remaining/VBG
term/NN
to/TO
maturity/NN
of/IN
28/CD
years/NNS
./.
The/DT
issue/NN
is/VBZ
rated/VBN
triple-A/JJ
by/IN
S&P/NNP
,/,
Moody/NNP
's/POS
and/CC
Fitch/NNP
Investors/NNPS
Service/NNP
Inc/NNP
./.
The/DT
issue/NN
is/VBZ
6/CD
%/NN
to/TO
7/CD
%/NN
overcollateralized/VBN
,/,
and/CC
75/CD
%/NN
of/IN
the/DT
loans/NNS
are/VBP
covered/VBN
by/IN
a/DT
General/NNP
Electric/NNP
pool/NN
policy/NN
covering/VBG
losses/NNS
of/IN
as/RB
much/JJ
as/IN
10/CD
%/NN
of/IN
the/DT
original/JJ
principal/JJ
balance/NN
of/IN
the/DT
loans/NNS
./.
J.C./NNP
Penney/NNP
Co./NNP
--/:
$/$
350/CD
million/CD
of/IN
JCP/NNP
Master/NNP
Credit/NNP
Card/NNP
Trust/NNP
asset-backed/JJ
certificates/NNS
,/,
Series/NNP
B/NNP
,/,
with/IN
a/DT
final/JJ
stated/VBN
maturity/NN
of/IN
Oct./NNP
15/CD
,/,
2001/CD
,/,
was/VBD
priced/VBN
at/IN
99.1875/CD
to/TO
yield/VB
9.192/CD
%/NN
with/IN
a/DT
coupon/NN
of/IN
8.95/CD
%/NN
./.
The/DT
certificates/NNS
,/,
which/WDT
have/VBP
an/,
average/JJ
life/NN
of/IN
10.05/CD
years/NNS
,/,
were/VBD
priced/VBN
at/IN
1.31/CD
percentage/NN
points/NNS
over/IN
the/DT
benchmark/JJ
Treasury/NNP
10-year/JJ
note/NN
./.
Rated/VBN
triple-A/JJ
by/IN
Moody/NNP
's/POS
and/CC
S&P/NNP
,/,
the/DT
issue/NN
will/MD
be/VB
sold/VBN
through/IN
First/NNP
Boston/NNP
Corp/NNP
./.
The/DT
issue/NN
is/VBZ
backed/VBN
by/IN
a/DT
12/CD
%/NN
letter/NN
of/IN
credit/NN
from/IN
Credit/NNP
Suisse/NNP
./.
Keio/NNP
Teito/NNP
Electric/NNP
Railway/NNP
Co/NNP
./.
Japan/NNP
$/$
300/CD
million/CD
of/IN
bonds/NNS
due/JJ
Nov./NNP
16/CD
,/,
1993/CD
,/,
with/IN
equity-purchase/JJ
warrants/NNS
,/,
indicating/VBG
a/DT
3/CD
3\/4/CD
%/NN
coupon/NN
at/IN
par/JJ
via/IN
Nomura/NNP
International/NNP
Ltd/NNP
./.
Each/DT
$/$
5,000/CD
bond/NN
carries/VBZ
one/CD
warrant/NN
,/,
exercisable/JJ
from/IN
Nov./NNP
30/CD
through/IN
Nov./NNP
2/CD
,/,
1993/CD
,/,
to/TO
buy/VB
company/NN
shares/NNS
at/IN
an/DT
expected/JJ
premium/NN
of/IN
2/CD
1\/2/CD
%/NN
to/TO
the/DT
closing/VBG
share/NN
price/NN
when/WRB
terms/NNS
are/VBP
fixed/VBN
Tuesday/NNP
./.
Diesel/NNP
Kiki/NNP
Co/NNP
./.
Japan/NNP
$/$
200/CD
million/CD
of/IN
bonds/NNS
due/JJ
Nov./NNP
16/CD
,/,
1994/CD
,/,
with/IN
equity-purchase/JJ
warrants/NNS
,/,
indicating/VBG
a/DT
4/CD
1\/2/CD
%/NN
coupon/NN
at/IN
par/JJ
via/IN
Yamaichi/NNP
International/NNP
Europe/NNP
Ltd/NNP
./.
Each/DT
$/$
5,000/CD
bond/NN
carries/VBZ
one/CD
warrant/NN
,/,
exercisable/JJ
from/IN
Nov./NNP
30/CD
through/IN
Nov./NNP
2/CD
,/,
1994/CD
,/,
to/TO
buy/VB
company/NN
shares/NNS
at/IN
an/DT
expected/JJ
premium/NN
of/IN
2/CD
1\/2/CD
%/NN
to/TO
the/DT
closing/VBG
share/NN
price/NN
when/WRB
terms/NNS
are/VBP
fixed/VBN
Monday/NNP
./.
Chugoku/NNP
Electric/NNP
Power/NNP
Co/NNP
./.
Japan/NNP
$/$
150/CD
million/CD
of/IN
8/CD
7\/8/CD
%/NN
bonds/NNS
due/JJ
Nov./NNP
29/CD
,/,
1996/CD
,/,
priced/VBN
at/IN
101/CD
7\/8/CD
to/TO
yield/VB
8/CD
7\/8/CD
%/NN
less/CC
full/JJ
fees/NNS
via/IN
Nikko/NNP
Securities/NNPS
Ltd/NNP
./.
Fees/NNS
1/CD
7\/8/CD
./.
Monte/NNP
dei/FW
Paschi/NNP
di/FW
Siena/NNP
,/,
Singapore/NNP
branch/NN
Italian/JJ
parent/NN
the/DT
Law/NNP
Debenture/NNP
Trust/NNP
Corp./NNP
--/:
10/CD
billion/CD
yen/NNS
$/$
70/CD
million/CD
6/CD
%/NN
bonds/NNS
due/JJ
Feb./NNP
24/CD
,/,
1993/CD
,/,
priced/VBN
at/IN
101/CD
1\/4/CD
,/,
via/IN
Daiwa/NNP
Europe/NNP
Ltd/NNP
./.
Okobank/NNP
Finland/NNP
10/CD
billion/CD
yen/NNS
of/IN
6/CD
%/NN
bonds/NNS
due/JJ
Nov./NNP
30/CD
,/,
1992/CD
,/,
priced/VBN
at/IN
101.225/CD
to/TO
yield/VB
6.056/CD
%/NN
via/IN
IBJ/NNP
International/NNP
./.
EG&G/NNP
Inc./NNP
said/VBD
it/PRP
acquired/VBD
Laboratorium/NNP
Prof./NNP
Dr./NNP
Berthold/NNP
,/,
a/DT
German/JJ
maker/NN
of/IN
scientific/JJ
instruments/NNS
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
The/DT
Wellesley/NNP
,/,
Mass./NNP
,/,
maker/NN
of/IN
scientific/JJ
instruments/NNS
and/CC
electronic/JJ
parts/NNS
said/VBD
Berthold/NNP
expects/VBZ
1989/CD
sales/NNS
of/IN
more/JJR
than/IN
100/CD
million/CD
Deutsche/FW
marks/NNS
$/$
54.5/CD
million/CD
400/CD
people/NNS
./.
Berthold/NNP
is/VBZ
based/VBN
in/IN
Wildbad/NNP
,/,
West/NNP
Germany/NNP
,/,
and/CC
also/RB
has/VBZ
operations/NNS
in/IN
Belgium/NNP
./.
John/NNP
M./NNP
Kucharski/NNP
,/,
EG&G/NNP
's/POS
chairman/NN
and/CC
chief/JJ
executive/NN
,/,
said/VBD
the/DT
acquisition/NN
``/``
will/MD
extend/VB
EG&G/NNP
's/POS
core/NN
technologies/NNS
,/,
strengthen/VB
its/PRP$
position/NN
in/IN
the/DT
European/NNP
Economic/NNP
Community/NNP
and/CC
assure/VB
a/DT
strength/NN
and/CC
presence/NN
in/IN
the/DT
Eastern/JJ
European/JJ
market/NN
./.
''/''
He/PRP
said/VBD
it/PRP
especially/RB
will/MD
strengthen/VB
the/DT
company/NN
's/POS
efforts/NNS
in/IN
the/DT
rapidly/RB
growing/VBG
field/NN
of/IN
bio-analytical/JJ
instrumentation/NN
,/,
and/CC
in/IN
applied/JJ
nuclear/JJ
physics/NNS
./.
Separately/RB
,/,
EG&G/NNP
said/VBD
it/PRP
sold/VBD
most/JJS
of/IN
its/PRP$
Mason/NNP
Research/NNP
Institute/NNP
subsidiary/NN
to/TO
Transgenic/NNP
Sciences/NNPS
Inc./NNP
,/,
a/DT
closely/RB
held/JJ
biotechnology/NN
company/NN
based/VBN
in/IN
Worcester/NNP
,/,
Mass/NNP
./.
The/DT
sale/NN
,/,
for/IN
$/$
7/CD
million/CD
in/IN
cash/NN
and/CC
securities/NNS
,/,
will/MD
leave/VB
EG&G/NNP
with/IN
a/DT
12/CD
%/NN
stake/NN
in/IN
Transgenic/NNP
,/,
executives/NNS
said/VBD
./.
Mason/NNP
is/VBZ
the/DT
largest/JJS
toxicology/NN
lab/NN
in/IN
New/NNP
England/NNP
,/,
with/IN
annual/JJ
revenue/NN
of/IN
$/$
8/CD
million/CD
and/CC
140/CD
employees/NNS
./.
Mason/NNP
serves/VBZ
commercial/JJ
and/CC
government/NN
customers/NNS
,/,
including/VBG
the/DT
National/NNP
Institutes/NNPS
of/IN
Health/NNP
./.
The/DT
combined/JJ
companies/NNS
will/MD
become/VB
profitable/JJ
by/IN
January/NNP
1990/CD
,/,
said/VBD
James/NNP
P./NNP
Sherblom/NNP
,/,
Transgenic/NNP
's/POS
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
./.
The/DT
Internal/NNP
Revenue/NNP
Service/NNP
said/VBD
it/PRP
is/VBZ
willing/JJ
to/TO
let/VB
the/DT
U.S./NNP
Tax/NNP
Court/NNP
decide/VB
how/WRB
much/JJ
oil/NN
man/NN
William/NNP
Herbert/NNP
Hunt/NNP
will/MD
owe/VB
the/DT
government/NN
after/IN
his/PRP$
assets/NNS
are/VBP
liquidated/VBN
./.
The/DT
surprise/NN
announcement/NN
came/VBD
after/IN
the/DT
IRS/NNP
broke/VBD
off/RP
negotiations/NNS
with/IN
Mr./NNP
Hunt/NNP
on/IN
a/DT
settlement/NN
of/IN
the/DT
one-time/JJ
tycoon/NN
's/POS
personal/JJ
bankruptcy/NN
case/NN
./.
Although/IN
the/DT
action/NN
removes/VBZ
one/CD
obstacle/NN
in/IN
the/DT
way/NN
of/IN
an/DT
overall/JJ
settlement/NN
to/TO
the/DT
case/NN
,/,
it/PRP
also/RB
means/VBZ
that/IN
Mr./NNP
Hunt/NNP
could/MD
be/VB
stripped/VBN
of/IN
virtually/RB
all/DT
of/IN
his/PRP$
assets/NNS
if/IN
the/DT
Tax/NNP
Court/NNP
rules/VBZ
against/IN
him/PRP
in/IN
a/DT
1982/CD
case/NN
heard/VBN
earlier/RBR
this/DT
year/NN
in/IN
Washington/NNP
,/,
D.C/NNP
./.
The/DT
IRS/NNP
has/VBZ
been/VBN
seeking/VBG
more/JJR
than/IN
$/$
300/CD
million/CD
in/IN
back/JJ
taxes/NNS
from/IN
Mr./NNP
Hunt/NNP
./.
Separately/RB
,/,
a/DT
federal/JJ
judge/NN
hearing/VBG
Mr./NNP
Hunt/NNP
's/POS
bankruptcy/NN
case/NN
yesterday/NN
turned/VBD
down/RP
a/DT
proposed/VBN
$/$
65.7/CD
million/CD
settlement/NN
between/IN
Mr./NNP
Hunt/NNP
and/CC
Minpeco/NNP
S.A./NNP
,/,
another/DT
major/JJ
creditor/NN
in/IN
the/DT
case/NN
./.
The/DT
Peruvian/JJ
minerals/NNS
concern/NN
had/VBD
been/VBN
seeking/VBG
a/DT
claim/NN
of/IN
$/$
251/CD
million/CD
against/IN
Mr./NNP
Hunt/NNP
./.
In/IN
addition/NN
to/TO
turning/VBG
down/RP
the/DT
compromise/NN
,/,
Judge/NNP
Harold/NNP
C./NNP
Abramson/NNP
said/VBD
he/PRP
would/MD
allow/VB
a/DT
claim/NN
of/IN
only/RB
$/$
19.7/CD
million/CD
./.
Minpeco/NNP
attorneys/NNS
said/VBD
they/PRP
would/MD
appeal/VB
the/DT
decision/NN
to/TO
a/DT
federal/JJ
district/NN
court/NN
./.
Regarding/VBG
Mr./NNP
Hunt/NNP
's/POS
taxes/NNS
,/,
he/PRP
and/CC
the/DT
IRS/NNP
have/VBP
apparently/RB
agreed/VBN
on/IN
a/DT
basic/JJ
formula/NN
for/IN
liquidating/VBG
his/PRP$
estate/NN
in/IN
which/WDT
the/DT
IRS/NNP
would/MD
get/VB
70/CD
%/NN
of/IN
the/DT
proceeds/NNS
from/IN
a/DT
liquidating/JJ
trust/NN
and/CC
30/CD
%/NN
would/MD
go/VB
to/TO
other/JJ
creditors/NNS
./.
But/CC
they/PRP
have/VBP
been/VBN
at/IN
odds/NNS
over/IN
how/WRB
much/JJ
Mr./NNP
Hunt/NNP
would/MD
owe/VB
the/DT
government/NN
after/IN
his/PRP$
assets/NNS
are/VBP
sold/VBN
./.
The/DT
IRS/NNP
had/VBD
demanded/VBN
$/$
90/CD
million/CD
but/CC
Mr./NNP
Hunt/NNP
would/MD
agree/VB
to/TO
no/DT
more/JJR
than/IN
$/$
60/CD
million/CD
./.
Grover/NNP
Hartt/NNP
III/NNP
,/,
a/DT
government/NN
lawyer/NN
,/,
warned/VBD
that/IN
Mr./NNP
Hunt/NNP
stood/VBD
to/TO
lose/VB
certain/JJ
oil/NN
and/CC
gas/NN
properties/NNS
,/,
$/$
200,000/CD
in/IN
English/JJ
pottery/NN
,/,
a/DT
Colorado/NNP
condominium/NN
and/CC
other/JJ
assets/NNS
he/PRP
might/MD
have/VB
kept/VBN
if/IN
he/PRP
had/VBD
settled/VBN
with/IN
the/DT
IRS/NNP
./.
``/``
But/CC
they/PRP
wanted/VBD
to/TO
roll/VB
the/DT
dice/NNS
and/CC
we/PRP
're/VBP
going/VBG
to/TO
let/VB
them/PRP
,/,
''/''
Mr./NNP
Hartt/NNP
said/VBD
./.
Stephen/NNP
McCartin/NNP
,/,
Mr./NNP
Hunt/NNP
's/POS
attorney/NN
,/,
said/VBD
his/PRP$
client/NN
welcomed/VBD
the/DT
gamble/NN
./.
The/DT
Tax/NNP
Court/NNP
is/VBZ
n't/RB
expected/VBN
to/TO
rule/VB
before/IN
early/RB
next/JJ
year/NN
./.
Japan/NNP
has/VBZ
found/VBN
another/DT
safe/JJ
outlet/NN
for/IN
its/PRP$
money/NN
:/:
U.S./NNP
home/NN
mortgages/NNS
./.
An/DT
increasing/VBG
number/NN
of/IN
big/JJ
Japanese/JJ
investors/NNS
are/VBP
buying/VBG
up/RP
U.S./NNP
home/NN
mortgages/NNS
that/WDT
have/VBP
been/VBN
pooled/VBN
and/CC
packaged/VBN
for/IN
sale/NN
as/IN
interest-bearing/JJ
instruments/NNS
known/VBN
as/IN
mortgage-backed/JJ
securities/NNS
./.
As/RB
much/JJ
as/IN
10/CD
%/NN
of/IN
new/JJ
U.S./NNP
mortgage/NN
securities/NNS
issued/VBN
by/IN
the/DT
Federal/NNP
National/NNP
Mortgage/NNP
Association/NNP
,/,
or/CC
Fannie/NNP
Mae/NNP
,/,
and/CC
Federal/NNP
Home/NNP
Loan/NNP
Mortgage/NNP
Corp./NNP
,/,
or/CC
Freddie/NNP
Mac/NNP
,/,
now/RB
flow/VBP
into/IN
Japanese/JJ
hands/NNS
./.
That/DT
may/MD
not/RB
come/VB
as/IN
a/DT
surprise/NN
to/TO
Americans/NNPS
who/WP
have/VBP
watched/VBN
the/DT
Japanese/NNPS
snap/VBP
up/RP
properties/NNS
in/IN
the/DT
U.S./NNP
from/IN
golf/NN
courses/NNS
to/TO
a/DT
stake/NN
in/IN
Rockefeller/NNP
Center/NNP
./.
But/CC
it/PRP
marks/VBZ
a/DT
big/JJ
change/NN
for/IN
the/DT
Japanese/NNPS
,/,
who/WP
shunned/VBD
mortgage/NN
securities/NNS
after/IN
getting/VBG
burned/VBN
by/IN
a/DT
big/JJ
downturn/NN
in/IN
interest/NN
rates/NNS
a/DT
few/JJ
years/NNS
back/RB
./.
``/``
You/PRP
ca/MD
n't/RB
say/VB
it/PRP
's/VBZ
a/DT
``/``
tsunami/NN
''/''
(/(
tidal/JJ
wave/NN
we/PRP
're/VBP
making/VBG
some/DT
headway/NN
,/,
''/''
says/VBZ
Fannie/NNP
Mae/NNP
's/POS
chairman/NN
,/,
David/NNP
O./NNP
Maxwell/NNP
,/,
who/WP
visits/VBZ
Tokyo/NNP
at/IN
least/JJS
once/RB
a/DT
year/NN
to/TO
explain/VB
and/CC
drum/VB
up/RP
investor/NN
interest/NN
in/IN
mortgage/NN
securities/NNS
./.
``/``
Interest/NN
is/VBZ
a/DT
great/JJ
deal/NN
higher/JJR
than/IN
it/PRP
was/VBD
a/DT
year/NN
ago/RB
./.
''/''
The/DT
steady/JJ
growth/NN
of/IN
the/DT
mortgage/NN
securities/NNS
market/NN
in/IN
the/DT
U.S./NNP
has/VBZ
even/RB
triggered/VBN
talk/NN
of/IN
building/NN
up/RP
a/DT
similar/JJ
market/NN
here/RB
./.
Evidence/NN
of/IN
the/DT
growing/VBG
Japanese/JJ
demand/NN
for/IN
mortgage/NN
securities/NNS
abounds/VBZ
./.
Earlier/RBR
this/DT
year/NN
,/,
Blackstone/NNP
Group/NNP
,/,
a/DT
New/NNP
York/NNP
investment/NN
bank/NN
,/,
had/VBD
no/DT
trouble/NN
selling/VBG
out/RP
a/DT
special/JJ
$/$
570/CD
million/CD
mortgage-securities/JJ
trust/NN
it/PRP
created/VBD
for/IN
Japanese/JJ
investors/NNS
./.
Industrial/NNP
Bank/NNP
of/IN
Japan/NNP
,/,
which/WDT
claims/VBZ
to/TO
be/VB
the/DT
biggest/JJS
Japanese/JJ
buyer/NN
of/IN
U.S./NNP
mortgage/NN
securities/NNS
,/,
says/VBZ
it/PRP
will/MD
more/RBR
than/IN
double/VB
its/PRP$
purchases/NNS
this/DT
year/NN
,/,
to/TO
an/DT
amount/NN
one/CD
official/NN
puts/VBZ
at/IN
several/JJ
billion/CD
dollars/NNS
./.
And/CC
a/DT
Fannie/NNP
Mae/NNP
seminar/NN
this/DT
week/NN
promises/VBZ
to/TO
draw/VB
hundreds/NNS
of/IN
prospective/JJ
investors/NNS
,/,
who/WP
can/MD
be/VB
expected/VBN
to/TO
channel/VB
tens/NNS
of/IN
billions/NNS
of/IN
dollars/NNS
into/IN
the/DT
market/NN
in/IN
the/DT
next/JJ
few/JJ
years/NNS
./.
``/``
Last/JJ
year/NN
,/,
there/EX
were/VBD
only/RB
several/JJ
big/JJ
investors/NNS
who/WP
were/VBD
interested/JJ
,/,
''/''
says/VBZ
Kinji/NNP
Kato/NNP
,/,
a/DT
vice/NN
president/NN
at/IN
the/DT
international/JJ
arm/NN
of/IN
Nomura/NNP
Securities/NNPS
Co/NNP
./.
``/``
This/DT
year/NN
,/,
some/DT
investors/NNS
are/VBP
changing/VBG
their/PRP$
policies/NNS
and/CC
investing/VBG
a/DT
lot/NN
./.
''/''
Ultimately/RB
,/,
he/PRP
says/VBZ
,/,
strong/JJ
demand/NN
could/MD
help/VB
to/TO
drive/VB
down/RP
interest/NN
rates/NNS
on/IN
mortgage/NN
securities/NNS
./.
At/IN
the/DT
moment/NN
,/,
Nomura/NNP
is/VBZ
the/DT
only/JJ
Japanese/JJ
institution/NN
authorized/VBN
to/TO
act/VB
as/IN
a/DT
primary/JJ
seller/NN
of/IN
Fannie/NNP
Mae/NNP
instruments/NNS
./.
But/CC
other/JJ
Japanese/JJ
institutions/NNS
say/VBP
privately/RB
that/IN
they/PRP
are/VBP
considering/VBG
asking/VBG
to/TO
join/VB
the/DT
59-dealer/JJ
selling/VBG
group/NN
./.
These/DT
securities/NNS
are/VBP
attractive/JJ
to/TO
Japanese/JJ
investors/NNS
for/IN
three/CD
reasons/NNS
./.
First/LS
,/,
they/PRP
are/VBP
safe/JJ
./.
While/IN
they/PRP
are/VBP
n't/RB
backed/VBN
by/IN
the/DT
full/JJ
faith/NN
and/CC
credit/NN
of/IN
the/DT
U.S./NNP
government/NN
,/,
as/IN
Treasury/NNP
bonds/NNS
are/VBP
,/,
it/PRP
is/VBZ
widely/RB
assumed/VBN
that/IN
the/DT
government/NN
would/MD
support/VB
them/PRP
if/IN
necessary/JJ
./.
U.S./NNP
Treasury/NNP
bonds/NNS
are/VBP
still/RB
the/DT
dollar-denominated/JJ
investment/NN
of/IN
choice/NN
for/IN
long-term/JJ
Japanese/JJ
investors/NNS
Second/LS
,/,
they/PRP
are/VBP
liquid/JJ
./.
The/DT
secondary/JJ
market/NN
in/IN
federally/RB
backed/JJ
mortgage/NN
securities/NNS
now/RB
exceeds/VBZ
$/$
900/CD
billion/CD
,/,
or/CC
nearly/RB
half/NN
of/IN
the/DT
$/$
2.2/CD
trillion/CD
in/IN
U.S./NNP
residential/JJ
mortgages/NNS
issued/VBN
./.
Third/LS
,/,
they/PRP
offer/VBP
high/JJ
yields/NNS
./.
At/IN
the/DT
moment/NN
,/,
some/DT
offer/VBP
as/RB
much/JJ
as/IN
1.6/CD
to/TO
1.8/CD
percentage/NN
points/NNS
over/IN
Treasury/NNP
securities/NNS
of/IN
similar/JJ
maturities/NNS
./.
But/CC
there/EX
is/VBZ
a/DT
risk/NN
,/,
which/WDT
the/DT
Japanese/NNPS
discovered/VBD
when/WRB
they/PRP
first/RB
dipped/VBD
their/PRP$
toes/NNS
into/IN
the/DT
market/NN
nearly/RB
five/CD
years/NNS
ago/RB
./.
Since/IN
most/JJS
mortgages/NNS
can/MD
be/VB
prepaid/VBN
or/CC
refinanced/VBN
at/IN
any/DT
time/NN
,/,
issuers/NNS
of/IN
mortgage/NN
securities/NNS
retain/VBP
the/DT
right/NN
to/TO
buy/VB
back/RB
their/PRP$
bonds/NNS
before/IN
maturity/NN
./.
That/DT
's/VBZ
a/DT
headache/NN
for/IN
long-term/JJ
investors/NNS
,/,
since/IN
it/PRP
forces/VBZ
them/PRP
to/TO
reinvest/VB
their/PRP$
money/NN
--/:
usually/RB
at/IN
lower/JJR
rates/NNS
than/IN
the/DT
original/JJ
mortgage/NN
securities/NNS
carried/VBD
./.
``/``
Two/CD
or/CC
three/CD
years/NNS
ago/RB
,/,
the/DT
problem/NN
was/VBD
that/IN
people/NNS
did/VBD
n't/RB
understand/VB
the/DT
prepayment/NN
risk/NN
,/,
''/''
says/VBZ
Nomura/NN
's/POS
Mr./NNP
Kato/NNP
./.
``/``
So/RB
they/PRP
were/VBD
surprised/JJ
and/CC
very/RB
disappointed/JJ
by/IN
prepayment/NN
./.
''/''
Compounding/VBG
the/DT
trouble/NN
to/TO
Japanese/JJ
investors/NNS
,/,
mortgage/NN
securities/NNS
pay/VBP
interest/NN
monthly/RB
,/,
since/IN
most/JJS
mortgages/NNS
require/VBP
homeowners/NNS
to/TO
make/VB
monthly/JJ
payments/NNS
./.
But/CC
Japanese/JJ
institutional/JJ
investors/NNS
are/VBP
used/VBN
to/TO
quarterly/JJ
or/CC
semiannual/JJ
payments/NNS
on/IN
their/PRP$
investments/NNS
,/,
so/IN
the/DT
monthly/JJ
cash/NN
flow/NN
posed/VBD
administrative/JJ
problems/NNS
./.
As/IN
a/DT
result/NN
,/,
Japanese/JJ
investors/NNS
steered/VBD
clear/RB
of/IN
the/DT
mortgage/NN
securities/NNS
./.
But/CC
they/PRP
did/VBD
n't/RB
lose/VB
touch/NN
with/IN
the/DT
U.S./NNP
issuers/NNS
./.
Since/IN
1985/CD
,/,
Japanese/JJ
investors/NNS
have/VBP
bought/VBN
nearly/RB
80/CD
%/NN
of/IN
$/$
10/CD
billion/CD
in/IN
Fannie/NNP
Mae/NNP
corporate/JJ
debt/NN
issued/VBN
to/TO
foreigners/NNS
,/,
money/NN
that/IN
Fannie/NNP
Mae/NNP
uses/VBZ
to/TO
buy/VB
mortgages/NNS
from/IN
U.S./NNP
banks/NNS
./.
And/CC
Japanese/JJ
investors/NNS
took/VBD
up/RB
nearly/RB
all/DT
of/IN
two/CD
$/$
200/CD
million/CD
Real/JJ
Estate/NNP
Mortgage/NNP
Investment/NNP
Conduits/NNS
,/,
a/DT
kind/NN
of/IN
collateralized/JJ
mortgage/NN
obligation/NN
,/,
that/WDT
were/VBD
offered/VBN
to/TO
foreigners/NNS
this/DT
year/NN
./.
In/IN
addition/NN
,/,
further/JJ
packaging/NN
of/IN
mortgage-backed/JJ
securities/NNS
,/,
such/JJ
as/IN
Blackstone/VBP
's/POS
fund/NN
,/,
have/VB
reduced/VBN
the/DT
effects/NNS
of/IN
prepayment/NN
risk/NN
and/CC
automatically/RB
reinvest/VB
monthly/JJ
payments/NNS
so/IN
institutions/NNS
do/VBP
n't/RB
have/VB
to/TO
./.
Freddie/NNP
Mac/NNP
for/IN
years/NNS
has/VBZ
offered/VBN
a/DT
so-called/JJ
participation/NN
certificate/NN
that/WDT
guarantees/VBZ
it/PRP
wo/MD
n't/RB
be/VB
prepaid/VBN
for/IN
a/DT
set/NN
number/NN
of/IN
years/NNS
and/CC
offers/VBZ
semiannual/JJ
payments/NNS
./.
As/IN
Georgia-Pacific/NNP
's/POS
bid/NN
for/IN
Great/NNP
Northern/NNP
Nekoosa/NNP
has/VBZ
shown/VBN
,/,
uninvited/JJ
takeovers/NNS
are/VBP
still/RB
alive/JJ
despite/IN
premature/JJ
reports/NNS
of/IN
their/PRP$
demise/NN
./.
Therefore/RB
,/,
the/DT
debate/NN
about/IN
poison/NN
pills/NNS
will/MD
continue/VB
to/TO
rage/VB
in/IN
the/DT
boardrooms/NNS
of/IN
corporations/NNS
and/CC
the/DT
halls/NNS
of/IN
academia/NN
./.
Although/IN
poison/NN
pills/NNS
come/VBP
in/IN
different/JJ
colors/NNS
and/CC
shapes/NNS
,/,
they/PRP
usually/RB
give/VBP
current/JJ
shareholders/NNS
the/DT
right/NN
to/TO
buy/VB
more/JJR
stock/NN
of/IN
their/PRP$
corporation/NN
at/IN
a/DT
large/JJ
discount/NN
if/IN
certain/JJ
events/NNS
occur/VBP
--/:
typically/RB
,/,
if/IN
a/DT
hostile/JJ
bidder/NN
acquires/VBZ
more/JJR
than/IN
a/DT
specified/JJ
percentage/NN
of/IN
the/DT
corporation/NN
's/POS
stock/NN
./.
However/RB
,/,
these/DT
discount/NN
purchase/NN

rights/NNS
may/MD
generally/RB
be/VB
redeemed/VBN
at/IN
a/DT
nominal/JJ
cost/NN
by/IN
the/DT
corporation/NN
's/POS
directors/NNS
if/IN
they/PRP
approve/VBP
of/IN
a/DT
bidder/NN
./.
Supporters/NNS
of/IN
poison/NN
pills/NNS
argue/VBP
that/DT
their/PRP$
adoption/NN
forces/VBZ
bidders/NNS
to/TO
negotiate/VB
with/IN
a/DT
corporation/NN
's/POS
directors/NNS
,/,
who/WP
are/VBP
thereby/RB
put/VBN
in/IN
a/DT
better/JJR
position/NN
to/TO
pursue/VB
the/DT
long-term/JJ
interests/NNS
of/IN
the/DT
corporation/NN
./.
Recent/JJ
studies/NNS
by/IN
Georgeson/NNP
&/CC
Co./NNP
conclude/VBP
that/IN
corporations/NNS
with/IN
poison/NN
pills/NNS
have/VBP
experienced/VBN
greater/JJR
stock-price/JJ
appreciation/NN
than/IN
corporations/NNS
without/IN
poison/NN
pills/NNS
during/IN
the/DT
past/JJ
few/JJ
years/NNS
./.
Critics/NNS
of/IN
poison/NN
pills/NNS
argue/VBP
that/IN
they/PRP
harm/VBP
shareholders/NNS
by/IN
letting/VBG
corporate/JJ
management/NN
defeat/VB
takeover/NN
bids/NNS
at/IN
premium/JJ
prices/NNS
and/CC
by/IN
deterring/VBG
premium/JJ
bids/NNS
from/IN
ever/RB
being/VBG
made/VBN
to/TO
shareholders/NNS
./.
These/DT
critics/NNS
are/VBP
backed/VBN
by/IN
several/JJ
academic/JJ
studies/NNS
showing/VBG
that/IN
the/DT
adoption/NN
of/IN
poison/NN
pills/NNS
reduces/VBZ
shareholder/NN
values/NNS
not/RB
merely/RB
in/IN
the/DT
short/JJ
run/NN
,/,
but/CC
also/RB
over/IN
longer/JJR
periods/NNS
./.
Institutional/JJ
investors/NNS
that/WDT
must/MD
evaluate/VB
poison/NN
pills/NNS
on/IN
a/DT
regular/JJ
basis/NN
are/VBP
interested/JJ
less/RBR
in/IN
this/DT
general/JJ
debate/NN
than/IN
in/IN
the/DT
answers/NNS
to/TO
specific/JJ
questions/NNS
about/IN
the/DT
corporation/NN
issuing/VBG
the/DT
pill/NN
./.
Does/VBZ
this/DT
corporation/NN
have/VB
a/DT
high-quality/JJ
management/NN
team/NN
with/IN
a/DT
good/JJ
track/NN
record/NN
?/.
Does/VBZ
this/DT
team/NN
have/VB
a/DT
viable/JJ
strategy/NN
for/IN
improving/VBG
shareholder/NN
values/NNS
,/,
and/CC
does/VBZ
this/DT
strategy/NN
require/VB
implementation/NN
over/IN
an/DT
extended/JJ
period/NN
?/.
Will/MD
the/DT
adoption/NN
of/IN
this/DT
particular/JJ
form/NN
of/IN
a/DT
poison/NN
pill/NN
significantly/RB
improve/VB
the/DT
chances/NNS
for/IN
management/NN
to/TO
carry/VB
out/RP
this/DT
strategy/NN
?/.
If/IN
the/DT
answers/NNS
to/TO
these/DT
questions/NNS
are/VBP
affirmative/JJ
,/,
then/RB
institutional/JJ
investors/NNS
are/VBP
likely/JJ
to/TO
be/VB
favorably/RB
disposed/JJ
toward/IN
a/DT
specific/JJ
poison/NN
pill/NN
./.
However/RB
,/,
the/DT
problem/NN
is/VBZ
that/DT
once/RB
most/JJS
poison/JJ
pills/NNS
are/VBP
adopted/VBN
,/,
they/PRP
survive/VBP
forever/RB
./.
Although/IN
the/DT
current/JJ
management/NN
team/NN
may/MD
be/VB
outstanding/JJ
,/,
who/WP
will/MD
be/VB
the/DT
CEO/NNP
in/IN
10/CD
years/NNS
?/.
Although/IN
the/DT
five-year/JJ
strategy/NN
may/MD
be/VB
excellent/JJ
,/,
what/WP
will/MD
be/VB
the/DT
strategy/NN
in/IN
25/CD
years/NNS
?/.
The/DT
solution/NN
to/TO
this/DT
problem/NN
is/VBZ
a/DT
time-limited/JJ
poison/NN
pill/NN
./.
The/DT
limit/NN
could/MD
range/VB
from/IN
three/CD
years/NNS
to/TO
seven/CD
years/NNS
,/,
depending/VBG
on/IN
the/DT
composition/NN
of/IN
the/DT
management/NN
team/NN
and/CC
the/DT
nature/NN
of/IN
its/PRP$
strategic/JJ
plan/NN
./.
At/IN
the/DT
end/NN
of/IN
this/DT
period/NN
,/,
the/DT
poison/NN
pill/NN
would/MD
be/VB
eliminated/VBN
automatically/RB
,/,
unless/IN
a/DT
new/JJ
poison/NN
pill/NN
were/VBD
approved/VBN
by/IN
the/DT
then-current/JJ
shareholders/NNS
,/,
who/WP
would/MD
have/VB
an/DT
opportunity/NN
to/TO
evaluate/VB
the/DT
corporation/NN
's/POS
strategy/NN
and/CC
management/NN
team/NN
at/IN
that/DT
time/NN
./.
One/CD
rare/JJ
example/NN
of/IN
a/DT
time-limited/JJ
poison/NN
pill/NN
is/VBZ
the/DT
shareholder/NN
rights/NNS
plan/NN
adopted/VBN
by/IN
Pennzoil/NNP
last/JJ
year/NN
after/IN
it/PRP
received/VBD
a/DT
huge/JJ
litigation/NN
settlement/NN
from/IN
Texaco/NNP
./.
Pennzoil/NNP
's/POS
poison/NN
pill/NN
covers/VBZ
five/CD
years/NNS
in/IN
order/NN
to/TO
give/VB
current/JJ
management/NN
enough/JJ
time/NN
to/TO
put/VB
these/DT
proceeds/NNS
to/TO
work/VB
in/IN
a/DT
prudent/JJ
manner/NN
./.
Another/DT
interesting/JJ
example/NN
is/VBZ
the/DT
poison/NN
pill/NN
adopted/VBN
recently/RB
by/IN
Pittsburgh-based/JJ
National/NNP
Intergroup/NNP
Inc./NNP
,/,
a/DT
diversified/JJ
holding/VBG
company/NN
./.
The/DT
State/NNP
of/IN
Wisconsin/NNP
Investment/NNP
Board/NNP
,/,
which/WDT
owned/VBD
about/IN
7/CD
%/NN
of/IN
the/DT
company/NN
's/POS
voting/NN
stock/NN
,/,
worked/VBD
with/IN
management/NN
to/TO
devise/VB
a/DT
time-limited/JJ
poison/NN
pill/NN
./.
This/DT
pill/NN
automatically/RB
expires/VBZ
after/IN
three/CD
years/NNS
unless/IN
continued/VBN
by/IN
a/DT
vote/NN
of/IN
the/DT
shareholders/NNS
./.
The/DT
attitude/NN
of/IN
the/DT
Wisconsin/NNP
Investment/NNP
Board/NNP
reflects/VBZ
a/DT
growing/VBG
receptivity/NN
to/TO
time-limited/JJ
poison/NN
pills/NNS
on/IN
the/DT
part/NN
of/IN
institutional/JJ
investors/NNS
,/,
as/IN
shown/VBN
by/IN
the/DT
discussions/NNS
at/IN
recent/JJ
meetings/NNS
of/IN
the/DT
Council/NNP
of/IN
Institutional/NNP
Investors/NNPS
and/CC
my/PRP$
informal/JJ
survey/NN
of/IN
several/JJ
retirement/NN
plans/NNS
with/IN
large/JJ
stock/NN
positions/NNS
./.
More/RBR
widespread/JJ
time/NN
limits/NNS
on/IN
poison/NN
pills/NNS
would/MD
allow/VB
shareholders/NNS
to/TO
evaluate/VB
a/DT
specific/JJ
poison/NN
pill/NN
within/IN
the/DT
context/NN
of/IN
a/DT
specific/JJ
management/NN
team/NN
's/POS
strategy/NN
./.
Such/JJ
concrete/JJ
analysis/NN
is/VBZ
likely/JJ
to/TO
lead/VB
to/TO
more/RBR
fruitful/JJ
dialogue/NN
between/IN
management/NN
and/CC
shareholders/NNS
than/IN
the/DT
abstract/JJ
debate/NN
about/IN
poison/NN
pills/NNS
./.
Mr./NNP
Pozen/NNP
is/VBZ
the/DT
general/JJ
counsel/NN
and/CC
a/DT
managing/VBG
director/NN
of/IN
Fidelity/NNP
Investments/NNPS
in/IN
Boston/NNP
./.
Michael/NNP
Blair/NNP
,/,
former/JJ
president/NN
and/CC
chief/JJ
executive/NN
officer/NN
of/IN
Enfield/NNP
Corp./NNP
,/,
failed/VBD
to/TO
win/VB
election/NN
to/TO
the/DT
company/NN
's/POS
board/NN
at/IN
a/DT
special/JJ
shareholder/NN
meeting/NN
./.
Mr./NNP
Blair/NNP
said/VBD
after/IN
the/DT
meeting/NN
that/IN
he/PRP
had/VBD
filed/VBN
separate/JJ
lawsuits/NNS
in/IN
the/DT
Ontario/NNP
Supreme/NNP
Court/NNP
for/IN
unjust/JJ
dismissal/NN
against/IN
Enfield/NNP
and/CC
for/IN
libel/NN
against/IN
its/PRP$
largest/JJS
shareholder/NN
,/,
Canadian/NNP
Express/NNP
Ltd./NNP
,/,
and/CC
two/CD
executives/NNS
of/IN
Hees/NNP
International/NNP
Bancorp/NNP
Inc./NNP
,/,
which/WDT
controls/VBZ
Canadian/NNP
Express/NNP
./.
Holders/NNS
at/IN
the/DT
meeting/NN
elected/VBD
a/DT
full/JJ
slate/NN
of/IN
Canadian/NNP
Express/NNP
nominees/NNS
to/TO
Enfield/NNP
's/POS
11-member/JJ
board/NN
./.
Mr./NNP
Blair/NNP
and/CC
Hees/NNP
have/VBP
been/VBN
feuding/VBG
for/IN
months/NNS
./.
Yesterday/NN
's/POS
election/NN
was/VBD
a/DT
sequel/NN
to/TO
Enfield/NNP
's/POS
annual/JJ
meeting/NN
in/IN
June/NNP
when/WRB
Mr./NNP
Blair/NNP
disallowed/VBD
proxies/NNS
in/IN
favor/NN
of/IN
two/CD
Hees/NNP
nominees/NNS
./.
The/DT
Ontario/NNP
Supreme/NNP
Court/NNP
overturned/VBD
Mr./NNP
Blair/NNP
's/POS
decision/NN
./.
He/PRP
later/RB
resigned/VBD
from/IN
his/PRP$
executive/NN
positions/NNS
with/IN
Enfield/NNP
,/,
saying/VBG
that/IN
actions/NNS
by/IN
its/PRP$
board/NN
``/``
amounted/VBD
to/TO
{/(
my/PRP$
dismissal/NN
./.
''/''
Mr./NNP
Blair/NNP
said/VBD
his/PRP$
libel/NN
suit/NN
seeks/VBZ
10/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
8.5/CD
million/CD
Canadian/NNP
Express/NNP
and/CC
Hees/NNP
executives/NNS
Manfred/NNP
Walt/NNP
and/CC
Willard/NNP
L'Heureux/NNP
./.
He/PRP
said/VBD
his/PRP$
suit/NN
against/IN
Enfield/NNP
seeks/VBZ
two/CD
years/NNS
severance/NN
pay/NN
,/,
equivalent/JJ
to/TO
C$/$
720,000/CD
./.
Hees/NNP
and/CC
Canadian/NNP
Express/NNP
executives/NNS
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
Enfield/NNP
is/VBZ
a/DT
holding/VBG
company/NN
with/IN
interests/NNS
in/IN
manufacturing/VBG
concerns/NNS
./.
It/PRP
is/VBZ
38.5/CD
%/NN
owned/VBN
by/IN
Canadian/NNP
Express/NNP
,/,
another/DT
holding/VBG
company/NN
./.
Hees/NNP
is/VBZ
a/DT
merchant/NN
bank/NN
controlled/VBN
by/IN
Toronto/NNP
financiers/NNS
Peter/NNP
and/CC
Edward/NNP
Bronfman/NNP
./.
All/PDT
the/DT
concerns/NNS
are/VBP
based/VBN
in/IN
Toronto/NNP
./.
Buying/VBG
51/CD
%/NN
of/IN
Rockefeller/NNP
Group/NNP
Inc./NNP
is/VBZ
right/RB
up/RB
Mitsubishi/NNP
Estate/NNP
Co./NNP
's/POS
alley/NN
in/IN
one/CD
sense/NN
:/:
The/DT
huge/JJ
Japanese/JJ
real/JJ
estate/NN
company/NN
is/VBZ
entering/VBG
a/DT
long-term/JJ
relationship/NN
with/IN
a/DT
similarly/RB
conservative/JJ
U.S./NNP
owner/NN
of/IN
tony/JJ
urban/JJ
property/NN
./.
But/CC
in/IN
another/DT
sense/NN
,/,
the/DT
$/$
846/CD
million/CD
purchase/NN
is/VBZ
uncharacteristically/RB
nervy/JJ
,/,
industry/NN
analysts/NNS
say/VBP
./.
The/DT
usually/RB
cautious/JJ
giant/NN
will/MD
become/VB
the/DT
majority/NN
owner/NN
of/IN
the/DT
company/NN
that/WDT
owns/VBZ
New/NNP
York/NNP
's/POS
beloved/JJ
Rockefeller/NNP
Center/NNP
at/IN
a/DT
time/NN
when/WRB
tensions/NNS
over/IN
Japanese/JJ
purchases/NNS
of/IN
U.S./NNP
property/NN
are/VBP
at/IN
an/DT
all-time/JJ
high/NN
./.
Officials/NNS
of/IN
Rockefeller/NNP
Group/NNP
and/CC
Mitsubishi/NNP
Estate/NNP
prefer/VBP
to/TO
focus/VB
on/IN
the/DT
affinities/NNS
,/,
nearly/RB
dismissing/VBG
the/DT
threat/NN
of/IN
a/DT
backlash/NN
from/IN
the/DT
U.S./NNP
public/NN
./.
``/``
We/PRP
think/VBP
there/EX
will/MD
be/VB
positive/JJ
as/RB
well/RB
as/IN
negative/JJ
reactions/NNS
,/,
''/''
says/VBZ
Raymond/NNP
Pettit/NNP
,/,
senior/JJ
vice/NN
president/NN
and/CC
chief/JJ
financial/JJ
officer/NN
of/IN
Rockefeller/NNP
Group/NNP
./.
``/``
On/IN
balance/NN
,/,
we/PRP
think/VBP
it/PRP
will/MD
be/VB
positive/JJ
./.
''/''
But/CC
some/DT
Japanese/JJ
government/NN
officials/NNS
and/CC
businessmen/NNS
worry/VBP
that/IN
the/DT
prominent/JJ
purchase/NN
is/VBZ
just/RB
the/DT
sort/NN
of/IN
deal/NN
that/WDT
should/MD
be/VB
avoided/VBN
for/IN
the/DT
time/NN
being/VBG
./.
In/RB
particular/RB
,/,
they/PRP
criticize/VBP
the/DT
timing/NN
,/,
coming/VBG
as/IN
it/PRP
does/VBZ
on/IN
the/DT
heels/NNS
of/IN
Sony/NNP
Corp./NNP
's/POS
controversial/JJ
purchase/NN
of/IN
Columbia/NNP
Pictures/NNPS
Entertainment/NNP
Inc/NNP
./.
``/``
Officially/RB
,/,
yes/UH
,/,
we/PRP
encourage/VBP
the/DT
free/JJ
flow/NN
of/IN
direct/JJ
investment/NN
,/,
''/''
says/VBZ
a/DT
Foreign/NNP
Ministry/NNP
official/NN
./.
``/``
But/CC
they/PRP
did/VBD
n't/RB
have/VB
to/TO
choose/VB
this/DT
particular/JJ
moment/NN
./.
''/''
During/IN
the/DT
past/JJ
year/NN
,/,
government/NN
officials/NNS
and/CC
leading/VBG
business/NN
organizations/NNS
have/VBP
repeatedly/RB
urged/VBN
Japanese/JJ
companies/NNS
to/TO
refrain/VB
from/IN
flashy/JJ
real/JJ
estate/NN
purchases/NNS
in/IN
the/DT
Since/IN
the/DT
mid-1980s/NNS
,/,
Japan/NNP
's/POS
other/JJ
major/JJ
real/JJ
estate/NN
purchases/NNS
in/IN
the/DT
U.S./NNP
include/VBP
Dai-Ichi/NNP
Seimei/NNP
America/NNP
Corp./NNP
's/POS
$/$
670/CD
million/CD
purchase/NN
of/IN
an/DT
office/NN
building/NN
at/IN
153/CD
East/NNP
53rd/CD
St./NNP
in/IN
Manhattan/NNP
in/IN
1987/CD
and/CC
Mitsui/NNP
Fudosan/NNP
Inc./NNP
's/POS
$/$
610/CD
million/CD
purchase/NN
of/IN
the/DT
Exxon/NNP
Building/NNP
,/,
part/NN
of/IN
Rockefeller/NNP
Center/NNP
,/,
in/IN
1986/CD
./.
In/IN
Los/NNP
Angeles/NNP
,/,
Arco/NNP
Plaza/NNP
was/VBD
sold/VBN
to/TO
Shuwa/NNP
Corp./NNP
for/IN
$/$
620/CD
million/CD
in/IN
1986/CD
,/,
and/CC
Sumitomo/NNP
Life/NNP
Insurance/NNP
Co./NNP
paid/VBD
$/$
300/CD
million/CD
for/IN
Atlanta/NNP
's/POS
IBM/NNP
Tower/NNP
last/JJ
year/NN
./.
Altogether/RB
,/,
annual/JJ
Japanese/JJ
investment/NN
in/IN
U.S./NNP
commercial/JJ
real/NN
estate/NN
grew/VBD
from/IN
about/IN
$/$
1.3/CD
billion/CD
in/IN
1985/CD
to/TO
about/IN
$/$
7.1/CD
billion/CD
in/IN
1988/CD
./.
Many/JJ
Japanese/JJ
companies/NNS
have/VBP
taken/VBN
the/DT
warnings/NNS
by/IN
the/DT
country/NN
's/POS
leaders/NNS
to/TO
heart/NN
and/CC
sought/VBD
development/NN
partnerships/NNS
rather/RB
than/IN
landmark/NN
properties/NNS
./.
Critics/NNS
say/VBP
Mitsubishi/NNP
Estate/NNP
's/POS
decision/NN
to/TO
buy/VB
into/IN
Rockefeller/NNP
reflects/VBZ
the/DT
degree/NN
to/TO
which/WDT
companies/NNS
are/VBP
irritated/JJ
by/IN
the/DT
pressure/NN
to/TO
act/VB
for/IN
the/DT
good/NN
of/IN
Japan/NNP
./.
``/``
Those/DT
who/WP
have/VBP
no/DT
money/NN
and/CC
are/VBP
n't/RB
buying/VBG
think/VB
it/PRP
's/VBZ
right/JJ
to/TO
refrain/VB
,/,
but/CC
those/DT
with/IN
money/NN
who/WP
want/VBP
to/TO
buy/VB
for/IN
themselves/PRP
pay/VBP
no/DT
attention/NN
,/,
''/''
says/VBZ
an/DT
official/NN
of/IN
the/DT
Japan-U.S/NNP
./.
Business/NNP
Council/NNP
./.
But/CC
to/TO
Mitsubishi/NNP
Estate/NNP
,/,
the/DT
acquisition/NN
has/VBZ
just/RB
the/DT
elements/NNS
that/WDT
should/MD
win/VB
support/NN
from/IN
both/DT
sides/NNS
./.
First/RB
of/IN
all/RB
,/,
it/PRP
is/VBZ
a/DT
friendly/JJ
acquisition/NN
in/IN
which/WDT
Rockefeller/NNP
sought/VBD
out/RP
Mitsubishi/NNP
Estate/NNP
and/CC
asked/VBD
it/PRP
to/TO
buy/VB
a/DT
majority/NN
share/NN
./.
Secondly/RB
,/,
the/DT
two/CD
companies/NNS
found/VBD
a/DT
similarity/NN
in/IN
their/PRP$
business/NN
and/CC
development/NN
philosophies/NNS
and/CC
intend/VBP
to/TO
cooperate/VB
in/IN
a/DT
range/NN
of/IN
activities/NNS
from/IN
real/JJ
estate/NN
to/TO
telecommunications/NN
./.
Finally/RB
,/,
Mitsubishi/NNP
Estate/NNP
has/VBZ
no/DT
plans/NNS
to/TO
interfere/VB
with/IN
Rockefeller/NNP
's/POS
management/NN
beyond/IN
taking/VBG
a/DT
place/NN
on/IN
the/DT
board/NN
./.
``/``
We/PRP
'll/MD
continue/VB
to/TO
work/VB
with/IN
them/PRP
,/,
in/IN
keeping/VBG
with/IN
the/DT
reputation/NN
of/IN
the/DT
company/NN
,/,
and/CC
we/PRP
'll/MD
rely/VB
very/RB
much/RB
on/IN
their/PRP$
leadership/NN
,/,
''/''
says/VBZ
Mitsubishi/NNP
Estate/NNP
President/NNP
Jotaro/NNP
Takagi/NNP
./.
Rockefeller/NNP
may/MD
well/RB
have/VB
found/VBN
its/PRP$
match/NN
in/IN
Mitsubishi/NNP
Estate/NNP
,/,
a/DT
company/NN
of/IN
long/JJ
history/NN
,/,
strong/JJ
government/NN
ties/NNS
and/CC
sound/JJ
resources/NNS
./.
In/IN
asset/NN
terms/NNS
,/,
Mitsubishi/NNP
Estate/NNP
is/VBZ
the/DT
largest/JJS
real/JJ
estate/NN
firm/NN
in/IN
Japan/NNP
./.
The/DT
core/NN
of/IN
its/PRP$
holdings/NNS
is/VBZ
190,000/CD
square/JJ
meters/NNS
of/IN
incredibly/RB
expensive/JJ
property/NN
in/IN
the/DT
Marunouchi/NNP
district/NN
,/,
the/DT
business/NN
and/CC
financial/JJ
center/NN
of/IN
Tokyo/NNP
,/,
often/RB
jokingly/RB
called/VBN
``/``
Mitsubishi/NNP
Village/NNP
./.
''/''
The/DT
Mitsubishi/NNP
family/NN
company/NN
acquired/VBD
that/IN
property/NN
from/IN
the/DT
government/NN
some/DT
100/CD
years/NNS
ago/RB
when/WRB
it/PRP
was/VBD
a/DT
portion/NN
of/IN
samurai/NN
residential/JJ
land/NN
running/VBG
from/IN
the/DT
moat/NN
of/IN
the/DT
Imperial/NNP
Palace/NNP
east/RB
toward/IN
the/DT
hodgepodge/NN
of/IN
tiny/JJ
shops/NNS
and/CC
twisted/JJ
alleys/NNS
that/WDT
made/VBD
up/RP
the/DT
merchants/NNS
'/POS
district/NN
./.
At/IN
the/DT
time/NN
,/,
Japan/NNP
had/VBD
just/RB
opened/VBN
its/PRP$
doors/NNS
to/TO
the/DT
world/NN
after/IN
about/IN
250/CD
years/NNS
of/IN
isolation/NN
and/CC
needed/VBD
a/DT
Western-style/JJ
business/NN
center/NN
./.
Mitsubishi/NNP
built/VBD
the/DT
government/NN
's/POS
dream/NN
development/NN
,/,
the/DT
story/NN
goes/VBZ
,/,
in/IN
exchange/NN
for/IN
the/DT
official/JJ
decision/NN
to/TO
locate/VB
Tokyo/NNP
's/POS
central/JJ
railway/NN
station/NN
there/RB
./.
That/DT
was/VBD
just/RB
an/DT
early/JJ
step/NN
in/IN
a/DT
relationship/NN
with/IN
government/NN
that/WDT
has/VBZ
earned/VBN
the/DT
Mitsubishi/NNP
group/NN
the/DT
dubious/JJ
moniker/NN
of/IN
``/``
seisho/FW
,/,
''/''
literally/RB
government-business/NN
,/,
a/DT
title/NN
that/WDT
has/VBZ
the/DT
pejorative/JJ
connotation/NN
of/IN
doing/VBG
the/DT
government/NN
's/POS
bidding/NN
,/,
but/CC
also/RB
suggests/VBZ
the/DT
clout/NN
inherent/JJ
in/IN
maintaining/VBG
such/JJ
close/JJ
ties/NNS
./.
Mitsubishi/NNP
Estate/NNP
is/VBZ
one/CD
of/IN
the/DT
dozens/NNS
of/IN
companies/NNS
in/IN
today/NN
's/POS
Mitsubishi/NNP
group/NN
./.
It/PRP
's/VBZ
known/JJ
for/IN
its/PRP$
cautiousness/NN
in/IN
part/NN
because/IN
it/PRP
has/VBZ
had/VBN
little/JJ
need/NN
for/IN
bold/JJ
overseas/JJ
ventures/NNS
:/:
In/IN
the/DT
year/NN
ended/VBN
March/NNP
31/CD
,/,
57.4/CD
%/NN
of/IN
its/PRP$
total/JJ
revenue/NN
came/VBD
from/IN
office/NN
building/NN
management/NN
./.
Its/PRP$
earnings/NNS
can/MD
rise/VB
10/CD
%/NN
to/TO
12/CD
%/NN
annually/RB
simply/RB
from/IN
the/DT
natural/JJ
turnover/NN
of/IN
tenants/NNS
and/CC
automatic/JJ
rent/NN
increases/NNS
,/,
says/VBZ
Graeme/NNP
McDonald/NNP
,/,
an/DT
industry/NN
analyst/NN
at/IN
James/NNP
Capel/NNP
Pacific/NNP
Ltd/NNP
./.
For/IN
the/DT
latest/JJS
fiscal/JJ
year/NN
,/,
the/DT
company/NN
's/POS
net/JJ
income/NN
jumped/VBD
a/DT
robust/JJ
19/CD
%/NN
to/TO
35.5/CD
billion/CD
yen/NNS
$/$
250.2/CD
million/CD
For/IN
Mitsubishi/NNP
Estate/NNP
,/,
the/DT
Rockefeller/NNP
purchase/NN
will/MD
catapult/VB
it/PRP
firmly/RB
into/IN
the/DT
overseas/JJ
real/JJ
estate/NN
business/NN
,/,
the/DT
one/CD
area/NN
where/WRB
it/PRP
has/VBZ
lagged/VBN
notably/RB
behind/IN
Japanese/JJ
competitors/NNS
such/JJ
as/IN
Mitsui/NNP
,/,
which/WDT
had/VBD
purchased/VBN
the/DT
Exxon/NNP
Building/NNP
./.
``/``
Japanese/JJ
companies/NNS
need/VBP
to/TO
invest/VB
in/IN
overseas/JJ
real/JJ
estate/NN
for/IN
diversification/NN
,/,
''/''
says/VBZ
Yoshio/NNP
Shima/NNP
,/,
an/DT
industry/NN
analyst/NN
at/IN
Goldman/NNP
Sachs/NNP
Japan/NNP
Corp/NNP
./.
Rockefeller/NNP
is/VBZ
n't/RB
the/DT
first/JJ
overseas/JJ
purchase/NN
for/IN
Mitsubishi/NNP
Estate/NNP
--/:
it/PRP
has/VBZ
already/RB
played/VBN
a/DT
leading/VBG
role/NN
in/IN
designing/VBG
Los/NNP
Angeles/NNP
's/POS
Citicorp/NNP
Plaza/NNP
./.
But/CC
the/DT
Rockefeller/NNP
investment/NN
is/VBZ
its/PRP$
largest/JJS
./.
Nonetheless/RB
,/,
it/PRP
will/MD
barely/RB
make/VB
a/DT
dent/NN
in/IN
Mitsubishi/NNP
Estate/NNP
's/POS
finances/NNS
,/,
analysts/NNS
say/VBP
./.
Mitsubishi/NNP
Estate/NNP
has/VBZ
n't/RB
decided/VBN
how/WRB
it/PRP
will/MD
raise/VB
the/DT
funds/NNS
for/IN
the/DT
purchase/NN
,/,
which/WDT
are/VBP
due/JJ
in/IN
cash/NN
next/IN
April/NNP
,/,
but/CC
the/DT
Marunouchi/NNP
holdings/NNS
alone/RB
are/VBP
estimated/VBN
to/TO
have/VB
a/DT
market/NN
value/NN
of/IN
as/RB
much/JJ
as/IN
10/CD
trillion/CD
yen/NNS
to/TO
11/CD
trillion/CD
yen/NNS
./.
Moreover/RB
,/,
as/IN
a/DT
member/NN
of/IN
the/DT
Mitsubishi/NNP
group/NN
,/,
which/WDT
is/VBZ
headed/VBN
by/IN
one/CD
of/IN
Japan/NNP
's/POS
largest/JJS
banks/NNS
,/,
it/PRP
is/VBZ
sure/JJ
to/TO
win/VB
a/DT
favorable/JJ
loan/NN
./.
Analysts/NNS
say/VBP
the/DT
company/NN
also/RB
could/MD
easily/RB
issue/VB
new/JJ
convertible/JJ
bonds/NNS
or/CC
warrants/NNS
./.
Meanwhile/RB
,/,
at/IN
home/NN
,/,
Mitsubishi/NNP
has/VBZ
control/VB
of/IN
some/DT
major/JJ
projects/NNS
./.
It/PRP
is/VBZ
the/DT
largest/JJS
private-sector/JJ
landowner/NN
of/IN
the/DT
Minato-Mirai/NNP
21/CD
project/NN
,/,
a/DT
multibillion-yen/JJ
development/NN
in/IN
the/DT
port/JJ
city/NN
of/IN
Yokohama/NNP
,/,
about/IN
an/DT
hour/NN
outside/IN
Tokyo/NNP
./.
The/DT
project/NN
is/VBZ
one/CD
of/IN
a/DT
select/JJ
group/NN
of/IN
public/JJ
projects/NNS
opened/VBN
to/TO
U.S./NNP
firms/NNS
under/IN
a/DT
U.S.-Japan/JJ
construction/NN
trade/NN
agreement/NN
reached/VBD
last/JJ
year/NN
./.
The/DT
centerpiece/NN
of/IN
that/DT
complex/NN
,/,
the/DT
Landmark/NNP
Tower/NNP
,/,
will/MD
be/VB
Japan/NNP
's/POS
tallest/JJS
building/NN
when/WRB
it/PRP
is/VBZ
completed/VBN
in/IN
1993/CD
./.
Mitsubishi/NNP
is/VBZ
also/RB
pushing/VBG
ahead/RB
with/IN
a/DT
controversial/JJ
plan/NN
to/TO
redevelop/VB
Marunouchi/NNP
into/IN
a/DT
business/NN
center/NN
of/IN
high-tech/JJ
buildings/NNS
,/,
a/DT
project/NN
budgeted/VBN
for/IN
30/CD
years/NNS
and/CC
six/CD
trillion/CD
yen/NNS
./.
Time/NNP
Warner/NNP
Inc./NNP
and/CC
Sony/NNP
Corp./NNP
may/MD
be/VB
today/NN
's/POS
public/JJ
enemies/NNS
,/,
but/CC
the/DT
two/CD
entertainment/NN
giants/NNS
could/MD
end/VB
up/RB
becoming/VBG
partners/NNS
in/IN
a/DT
number/NN
of/IN
ventures/NNS
as/IN
part/NN
of/IN
a/DT
settlement/NN
of/IN
their/PRP$
acrimonious/JJ
legal/JJ
dispute/NN
over/IN
Hollywood/NNP
producers/NNS
Peter/NNP
Guber/NNP
and/CC
Jon/NNP
Peters/NNP
./.
The/DT
Warner/NNP
Bros./NNPS
studio/NN
and/CC
Sony/NNP
signaled/VBD
they/PRP
are/VBP
close/JJ
to/TO
a/DT
settlement/NN
yesterday/NN
,/,
asking/VBG
a/DT
Los/NNP
Angeles/NNP
Superior/NNP
Court/NNP
to/TO
postpone/VB
a/DT
hearing/NN
scheduled/VBN
for/IN
tomorrow/NN
on/IN
Warner/NNP
's/POS
request/NN
for/IN
a/DT
preliminary/JJ
injunction/NN
blocking/VBG
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
from/IN
taking/VBG
the/DT
top/JJ
posts/NNS
at/IN
Columbia/NNP
Pictures/NNPS
Entertainment/NNP
Inc/NNP
./.
In/IN
separate/JJ
statements/NNS
,/,
the/DT
two/CD
sides/NNS
said/VBD
they/PRP
want/VBP
to/TO
have/VB
``/``
further/JJ
discussions/NNS
./.
''/''
Sony/NNP
is/VBZ
acquiring/VBG
Columbia/NNP
and/CC
Guber-Peters/NNP
Entertainment/NNP
Co./NNP
in/IN
two/CD
separate/JJ
transactions/NNS
valued/VBN
at/IN
more/JJR
than/IN
$/$
5/CD
billion/CD
./.
Warner/NNP
Communications/NNPS
Inc./NNP
,/,
which/WDT
is/VBZ
being/VBG
acquired/VBN
by/IN
Time/NNP
Warner/NNP
,/,
has/VBZ
filed/VBN
a/DT
$/$
1/CD
billion/CD
breach-of-contract/JJ
suit/NN
against/IN
Sony/NNP
and/CC
the/DT
two/CD
producers/NNS
./.
Warner/NNP
has/VBZ
a/DT
five-year/JJ
exclusive/JJ
contract/NN
with/IN
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
that/WDT
requires/VBZ
them/PRP
to/TO
make/VB
movies/NNS
exclusively/RB
at/IN
the/DT
Warner/NNP
Bros./NNPS
studio/NN
./.
The/DT
two/CD
sides/NNS
in/IN
the/DT
legal/JJ
battle/NN
have/VBP
hurled/VBN
accusations/NNS
of/IN
duplicity/NN
at/IN
each/DT
other/JJ
for/IN
weeks/NNS
,/,
and/CC
both/DT
Warner/NNP
and/CC
Sony/NNP
have/VBP
accused/VBN
each/DT
other/JJ
of/IN
trying/VBG
to/TO
sabotage/VB
each/DT
other/JJ
's/POS
prospects/NNS
for/IN
success/NN
in/IN
the/DT
entertainment/NN
business/NN
./.
But/CC
it/PRP
may/MD
amount/VB
to/TO
little/RB
more/JJR
than/IN
posturing/NN
;/:
the/DT
two/CD
have/VBP
continued/VBN
on-again/JJ
,/,
off-again/JJ
settlement/NN
talks/NNS
over/IN
the/DT
last/JJ
few/JJ
weeks/NNS
,/,
and/CC
people/NNS
familiar/JJ
with/IN
the/DT
talks/NNS
say/VBP
the/DT
matter/NN
could/MD
be/VB
resolved/VBN
within/IN
a/DT
week/NN
./.
Both/DT
Warner/NNP
and/CC
Sony/NNP
declined/VBD
to/TO
comment/VB
on/IN
the/DT
terms/NNS
of/IN
the/DT
settlement/NN
discussions/NNS
./.
But/CC
the/DT
people/NNS
familiar/JJ
with/IN
the/DT
talks/NNS
said/VBD
that/IN
Warner/NNP
is/VBZ
n't/RB
expected/VBN
to/TO
get/VB
any/DT
cash/NN
in/IN
the/DT
settlement/NN
./.
Instead/RB
,/,
Sony/NNP
is/VBZ
likely/JJ
to/TO
agree/VB
to/TO
let/VB
Warner/NNP
participate/VB
in/IN
certain/JJ
of/IN
its/PRP$
businesses/NNS
,/,
such/JJ
as/IN
the/DT
record/NN
club/NN
of/IN
Sony/NNP
's/POS
CBS/NNP
Records/NNPS
unit/NN
./.
Warner/NNP
has/VBZ
surpassed/VBN
Sony/NNP
as/IN
the/DT
largest/JJS
record/NN
company/NN
,/,
but/CC
it/PRP
does/VBZ
n't/RB
have/VB
a/DT
powerful/JJ
world-wide/JJ
record/NN
club/NN
like/IN
CBS/NNP
./.
The/DT
two/CD
sides/NNS
are/VBP
also/RB
discussing/VBG
certain/JJ
business/NN
ventures/NNS
involving/VBG
cable/NN
rights/NNS
to/TO
Columbia/NNP
's/POS
movies/NNS
./.
In/IN
addition/NN
,/,
Sony/NNP
is/VBZ
expected/VBN
to/TO
agree/VB
to/TO
swap/VB
Columbia/NNP
's/POS
35/CD
%/NN
stake/NN
in/IN
the/DT
sprawling/JJ
Burbank/NNP
,/,
Calif./NNP
,/,
studio/NN
that/IN
Warner/NNP
and/CC
Columbia/NNP
share/NN
,/,
in/IN
exchange/NN
for/IN
the/DT
old/JJ
MGM/NNP
studio/NN
lot/NN
that/IN
Warner/NNP
acquired/VBD
with/IN
the/DT
purchase/NN
of/IN
Lorimar/NNP
Telepictures/NNPS
Corp/NNP
./.
Still/RB
,/,
it/PRP
may/MD
be/VB
tough/JJ
for/IN
the/DT
two/CD
to/TO
have/VB
a/DT
smooth/JJ
partnership/NN
in/IN
anything/NN
,/,
in/IN
the/DT
wake/NN
of/IN
sworn/VBN
affidavits/NNS
filed/VBN
over/IN
the/DT
last/JJ
week/NN
./.
One/CD
,/,
for/IN
example/NN
,/,
came/VBD
from/IN
CBS/NNP
Records/NNPS
Chairman/NNP
Walter/NNP
Yetnikoff/NNP
,/,
who/WP
will/MD
head/VB
a/DT
committee/NN
that/WDT
will/MD
oversee/VB
Sony/NNP
's/POS
entertainment/NN
division/NN
,/,
including/VBG
both/DT
records/NNS
and/CC
movies/NNS
./.
In/IN
his/PRP$
affidavit/NN
,/,
Mr./NNP
Yetnikoff/NNP
accused/VBD
Warner/NNP
Chairman/NNP
Steven/NNP
J./NNP
Ross/NNP
of/IN
having/VBG
an/DT
``/``
antiSony/JJ
,/,
anti-Japanese/JJ
bias/NN
''/''
and/CC
said/VBD
that/IN
Mr./NNP
Ross/NNP
had/VBD
tried/VBN
to/TO
talk/VB
him/PRP
out/RB
of/IN
letting/VBG
Sony/NNP
buy/VB
CBS/NNP
Records/NNPS
two/CD
years/NNS
ago/RB
for/IN
that/DT
reason/NN
./.
Mr./NNP
Ross/NNP
,/,
who/WP
will/MD
be/VB
chairman/NN
and/CC
co-chief/JJ
executive/NN
officer/NN
of/IN
Time/NNP
Warner/NNP
after/IN
the/DT
merger/NN
is/VBZ
complete/JJ
,/,
denied/VBD
that/IN
in/IN
his/PRP$
own/JJ
affidavit/NN
,/,
and/CC
called/VBD
Mr./NNP
Yetnikoff/NNP
's/POS
remarks/NNS
``/``
vicious/JJ
''/''
and/CC
his/PRP$
claims/NNS
``/``
reckless/JJ
,/,
irresponsible/JJ
and/CC
baseless/JJ
,/,
''/''
saying/VBG
Warner/NNP
under/IN
his/PRP$
leadership/NN
has/VBZ
started/VBN
a/DT
number/NN
of/IN
businesses/NNS
in/IN
Japan/NNP
./.
Mr./NNP
Ross/NNP
also/RB
said/VBD
he/PRP
enjoys/VBZ
``/``
warm/JJ
professional/NN
and/CC
personal/JJ
relationships/NNS
''/''
with/IN
Japanese/JJ
executives/NNS
including/VBG
Sony/NNP
Chairman/NNP
Akio/NNP
Morita/NNP
,/,
``/``
who/WP
has/VBZ
visited/VBN
my/PRP$
home/NN
here/RB
./.
''/''
But/CC
despite/IN
the/DT
acrimony/NN
between/IN
Mr./NNP
Ross/NNP
and/CC
Mr./NNP
Yetnikoff/NNP
,/,
officials/NNS
of/IN
the/DT
Time/NNP
side/NN
of/IN
Time/NNP
Warner/NNP
have/VBP
reportedly/RB
been/VBN
increasingly/RB
interested/JJ
in/IN
a/DT
settlement/NN
that/WDT
might/MD
yield/VB
attractive/JJ
business/NN
opportunities/NNS
./.
Time/NNP
executives/NNS
such/JJ
as/IN
the/DT
company/NN
's/POS
president/NN
,/,
N.J/NNP
./.
Nicholas/NNS
,/,
who/WP
will/MD
eventually/RB
be/VB
co-chief/JJ
executive/NN
of/IN
Time/NNP
Warner/NNP
alongside/IN
Mr./NNP
Ross/NNP
,/,
have/VBP
no/DT
personal/JJ
relationships/NNS
or/CC
ego/NN
at/IN
stake/NN
in/IN
the/DT
fight/NN
over/IN
the/DT
Guber-Peters/NNP
duo/NN
,/,
and/CC
were/VBD
never/RB
directly/RB
drawn/VBN
into/IN
the/DT
fray/NN
./.
Talks/NNS
between/IN
the/DT
two/CD
sides/NNS
could/MD
unravel/VB
,/,
of/IN
course/NN
,/,
as/IN
they/PRP
have/VBP
more/RBR
its/PRP$
plans/NNS
to/TO
hire/VB
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
./.
But/CC
both/DT
sides/NNS
appear/VBP
to/TO
be/VB
more/RBR
willing/JJ
now/RB
to/TO
meet/VB
each/DT
other/JJ
's/POS
terms/NNS
to/TO
resolve/VB
the/DT
issue/NN
./.
And/CC
although/IN
Warner/NNP
has/VBZ
said/VBN
it/PRP
wanted/VBD
the/DT
producers/NNS
to/TO
fulfill/VB
the/DT
terms/NNS
of/IN
their/PRP$
contract/NN
,/,
the/DT
producers/NNS
said/VBD
in/IN
sworn/VBN
court/NN
declarations/NNS
that/IN
they/PRP
did/VBD
n't/RB
believe/VB
the/DT
relationship/NN
could/MD
be/VB
repaired/VBN
after/IN
the/DT
acrimony/NN
of/IN
the/DT
legal/JJ
battle/NN
./.
Any/DT
settlement/NN
is/VBZ
also/RB
expected/VBN
to/TO
exclude/VB
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
from/IN
any/DT
of/IN
the/DT
projects/NNS
they/PRP
were/VBD
working/VBG
on/IN
at/IN
Warner/NNP
./.
The/DT
Guber-Peters/NNP
duo/NN
have/VBP
50/CD
projects/NNS
in/IN
various/JJ
stages/NNS
of/IN
development/NN
and/CC
production/NN
at/IN
Warner/NNP
,/,
including/VBG
``/``
Bonfire/NN
of/IN
the/DT
Vanities/NNS
''/''
and/CC
``/``
A/DT
Bright/JJ
Shining/VBG
Lie/NN
./.
''/''
But/CC
that/IN
does/VBZ
n't/RB
mean/VB
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
might/MD
not/RB
eventually/RB
get/VB
their/PRP$
hands/NNS
on/IN
some/DT
of/IN
their/PRP$
projects/NNS
;/:
studios/NNS
develop/VBP
hundreds/NNS
of/IN
movies/NNS
but/CC
produce/VBP
only/RB
10/CD
to/TO
20/CD
each/DT
year/NN
./.
Once/RB
a/DT
studio/NN
chooses/VBZ
not/RB
to/TO
actually/RB
make/VB
a/DT
movie/NN
that/WDT
is/VBZ
in/IN
development/NN
,/,
producers/NNS
are/VBP
typically/RB
free/JJ
to/TO
take/VB
it/PRP
elsewhere/RB
./.
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
also/RB
almost/RB
certainly/RB
would/MD
n't/RB
be/VB
able/JJ
to/TO
participate/VB
in/IN
future/JJ
sequels/NNS
to/TO
``/``
Batman/NNP
,/,
''/''
the/DT
blockbuster/NN
hit/NN
they/PRP
produced/VBD
for/IN
Warner/NNP
./.
But/CC
in/IN
acquiring/VBG
Guber-Peters/NNP
Entertainment/NNP
,/,
Sony/NNP
will/MD
actually/RB
get/VB
a/DT
piece/NN
of/IN
the/DT
profits/NNS
from/IN
``/``
Batman/NNP
,/,
''/''
since/IN
the/DT
publicly/RB
held/JJ
concern/NN
gets/VBZ
certain/JJ
revenue/NN
from/IN
the/DT
movies/NNS
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
produce/VBP
./.
The/DT
two/CD
producers/NNS
own/VBP
a/DT
combined/JJ
28/CD
%/NN
stake/NN
in/IN
Guber-Peters/NNP
./.
Southern/NNP
Co./NNP
's/POS
Gulf/NNP
Power/NNP
Co./NNP
subsidiary/NN
pleaded/VBD
guilty/JJ
to/TO
two/CD
felony/NN
charges/NNS
of/IN
conspiracy/NN
to/TO
make/VB
illegal/JJ
political/JJ
contributions/NNS
and/CC
tax/NN
evasion/NN
,/,
and/CC
paid/VBD
$/$
500,000/CD
in/IN
fines/NNS
./.
Gulf/NNP
Power/NNP
's/POS
guilty/JJ
plea/NN
before/IN
U.S./NNP
District/NNP
Judge/NNP
Robert/NNP
L./NNP
Vining/NNP
yesterday/NN
marks/VBZ
the/DT
end/NN
of/IN
only/JJ
one/CD
part/NN
of/IN
a/DT
wide-ranging/JJ
inquiry/NN
of/IN
Southern/NNP
Co/NNP
./.
The/DT
company/NN
is/VBZ
the/DT
subject/NN
of/IN
a/DT
federal/JJ
grand/JJ
jury/NN
investigation/NN
into/IN
whether/IN
its/PRP$
officials/NNS
and/CC
its/PRP$
utility/NN
subsidiaries/NNS
conspired/VBD
to/TO
cover/VB
up/RP
their/PRP$
accounting/NN
for/IN
spare/JJ
parts/NNS
to/TO
evade/VB
federal/JJ
income/NN
taxes/NNS
./.
``/``
The/DT
terms/NNS
announced/VBD
today/NN
are/VBP
strictly/RB
between/IN
the/DT
United/NNP
States/NNPS
and/CC
Gulf/NNP
Power/NNP
,/,
''/''
said/VBD
U.S./NNP
Attorney/NNP
Robert/NNP
L./NNP
Barr/NNP
./.
``/``
This/DT
is/VBZ
only/RB
a/DT
further/JJ
step/NN
in/IN
a/DT
lengthy/JJ
investigation/NN
./.
''/''
The/DT
plea/NN
settlement/NN
does/VBZ
not/RB
allow/VB
Southern/NNP
Co./NNP
to/TO
charge/VB
any/DT
of/IN
the/DT
$/$
500,000/CD
to/TO
its/PRP$
customers/NNS
,/,
or/CC
take/VB
action/NN
against/IN
employees/NNS
who/WP
provided/VBD
information/NN
during/IN
the/DT
federal/JJ
inquiry/NN
./.
Gulf/NNP
Power/NNP
had/VBD
been/VBN
under/IN
investigation/NN
for/IN
violating/VBG
the/DT
Utility/NNP
Holding/NNP
Company/NNP
Act/NNP
,/,
which/WDT
prohibits/VBZ
public/JJ
utilities/NNS
from/IN
making/VBG
political/JJ
contributions/NNS
./.
In/IN
a/DT
statement/NN
,/,
Southern/NNP
Co./NNP
President/NNP
Edward/NNP
L./NNP
Addison/NNP
said/VBD
,/,
``/``
We/PRP
believe/VBP
our/PRP$
decision/NN
to/TO
plead/VB
(/(
guilty/JJ
these/DT
charges/NNS
is/VBZ
responsible/JJ
and/CC
proper/JJ
./.
And/CC
our/PRP$
action/NN
today/NN
will/MD
allow/VB
Gulf/NNP
Power/NNP
to/TO
avoid/VB
prolonged/JJ
,/,
distracting/JJ
legal/JJ
proceedings/NNS
./.
''/''
He/PRP
did/VBD
not/RB
say/VB
what/WDT
effect/NN
,/,
if/IN
any/DT
,/,
the/DT
$/$
500,000/CD
fine/NN
would/MD
have/VB
on/IN
the/DT
company/NN
's/POS
earnings/NNS
./.
Mr./NNP
Barr/NNP
said/VBD
yesterday/NN
's/POS
plea/NN
by/IN
Gulf/NNP
Power/NNP
,/,
which/WDT
came/VBD
after/IN
months/NNS
of/IN
negotiations/NNS
,/,
was/VBD
based/VBN
on/IN
evidence/NN
that/IN
Gulf/NNP
Power/NNP
had/VBD
set/VBN
up/RP
an/DT
elaborate/JJ
payment/NN
system/NN
through/IN
which/WDT
it/PRP
reimbursed/VBD
outside/JJ
vendors/NNS
--/:
primarily/RB
three/CD
Florida/NNP
advertising/NN
agencies/NNS
--/:
for/IN
making/VBG
illegal/JJ
political/JJ
contributions/NNS
on/IN
its/PRP$
behalf/NN
./.
The/DT
Appleyard/NNP
Agency/NNP
,/,
for/IN
example/NN
,/,
allegedly/RB
made/VBD
contributions/NNS
from/IN
1982/CD
to/TO
1984/CD
to/TO
various/JJ
funds/NNS
for/IN
political/JJ
candidates/NNS
,/,
then/RB
submitted/VBD
bills/NNS
to/TO
Gulf/NNP
Power/NNP
./.
The/DT
contributions/NNS
were/VBD
funded/VBN
by/IN
monthly/JJ
payments/NNS
of/IN
$/$
1,000/CD
to/TO
$/$
2,000/CD
to/TO
Appleyard/NNP
in/IN
the/DT
guise/NN
of/IN
a/DT
``/``
special/JJ
production/NN
fee/NN
''/''
--/:
in/IN
effect/NN
,/,
hiding/VBG
the/DT
nature/NN
of/IN
the/DT
payments/NNS
from/IN
the/DT
Internal/NNP
Revenue/NNP
Service/NNP
,/,
federal/JJ
prosecutors/NNS
said/VBD
./.
The/DT
government/NN
also/RB
indicated/VBD
that/DT
former/JJ
Gulf/NNP
Power/NNP
senior/JJ
vice/NN
president/NN
Jacob/NNP
F./NNP
``/``
Jake/NNP
''/''
Horton/NNP
was/VBD
the/DT
mastermind/NN
behind/IN
the/DT
use/NN
of/IN
the/DT
ad/NN
agencies/NNS
--/:
Appleyard/NNP
,/,
Dick/NNP
Leonard/NNP
Group/NNP
II/NNP
Inc./NNP
and/CC
Hemmer/NNP
&/CC
Yates/NNP
Corp./NNP
--/:
to/TO
make/VB
payments/NNS
to/TO
various/JJ
political/JJ
candidates/NNS
from/IN
1981/CD
to/TO
1988/CD
./.
Mr./NNP
Horton/NNP
,/,
who/WP
oversaw/VBD
Gulf/NNP
Power/NNP
's/POS
governmental-affairs/JJ
efforts/NNS
,/,
died/VBD
mysteriously/RB
in/IN
a/DT
plane/NN
crash/NN
in/IN
April/NNP
after/IN
learning/VBG
he/PRP
might/MD
be/VB
fired/VBN
following/VBG
the/DT
uncovering/VBG
of/IN
irregularities/NNS
in/IN
a/DT
company/NN
audit/NN
./.
Government/NN
officials/NNS
declined/VBD
to/TO
say/VB
whether/IN
the/DT
investigation/NN
includes/VBZ
the/DT
ad/NN
agencies/NNS
or/CC
the/DT
politicians/NNS
involved/VBN
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
trading/NN
,/,
Southern/NNP
Co./NNP
rose/VBD
50/CD
cents/NNS
a/DT
share/NN
to/TO
$/$
27.125/CD
./.
`/``
Frequent/JJ
Drinker/NN
'/''
Offer/NN
Stirs/VBZ
Up/RP
Spirited/JJ
Debate/NN
TO/TO
GRAB/NNP
a/DT
bigger/JJR
piece/NN
of/IN
the/DT
declining/VBG
scotch/NN
market/NN
,/,
Seagram/NNP
Co./NNP
has/VBZ
launched/VBN
a/DT
controversial/JJ
``/``
frequent/JJ
drinker/NN
''/''
promotion/NN
for/IN
its/PRP$
Chivas/NNP
Regal/NNP
brand/NN
./.
Under/IN
the/DT
program/NN
,/,
dubbed/VBN
Chivas/NNP
Class/NNP
,/,
customers/NNS
who/WP
send/VBP
in/IN
two/CD
labels/NNS
from/IN
Chivas/NNP
bottles/NNS
will/MD
receive/VB
an/DT
upgrade/NN
in/IN
seating/VBG
class/NN
on/IN
some/DT
Trans/NNP
World/NNP
Airlines/NNPS
flights/NNS
./.
Repeat/NN
customers/NNS
also/RB
can/MD
purchase/VB
luxury/NN
items/NNS
at/IN
reduced/JJ
prices/NNS
./.
But/CC
at/IN
a/DT
time/NN
of/IN
mounting/VBG
concern/NN
over/IN
alcohol/NN
abuse/NN
,/,
some/DT
liquor/NN
marketers/NNS
consider/VBP
Seagram/NNP
's/POS
frequent/JJ
buyer/NN
promotion/NN
risky/JJ
./.
``/``
I/PRP
'm/VBP
surprised/JJ
they/PRP
're/VBP
doing/VBG
this/DT
,/,
''/''
says/VBZ
Penn/NNP
Kavanagh/NNP
,/,
president/NN
of/IN
Schieffelin/NNP
&/CC
Somerset/NNP
Co./NNP
,/,
which/WDT
markets/VBZ
Johnnie/NNP
Walker/NNP
scotches/NNS
./.
``/``
I/PRP
would/MD
be/VB
very/RB
leery/JJ
of/IN
anything/NN
that/WDT
says/VBZ
if/IN
you/PRP
drink/VBP
more/JJR
,/,
you/PRP
get/VBP
more/JJR
./.
''/''
Others/NNS
question/VBP
the/DT
impact/NN
on/IN
Chivas/NNP
's/POS
upscale/JJ
image/NN
of/IN
a/DT
promotion/NN
that/WDT
has/VBZ
customers/NNS
soaking/VBG
off/RP
labels/NNS
./.
``/``
It/PRP
's/VBZ
really/RB
bizarre/JJ
,/,
''/''
says/VBZ
Albert/NNP
Lerman/NNP
,/,
creative/JJ
director/NN
at/IN
the/DT
Wells/NNP
Rich/NNP
Greene/NNP
ad/NN
agency/NN
./.
``/``
Chivas/NNP
has/VBZ
an/DT
image/NN
of/IN
something/NN
you/PRP
would/MD
savor/VB
,/,
rather/RB
than/IN
guzzle/VB
./.
''/''
Chivas/NNP
Class/NNP
is/VBZ
n't/RB
the/DT
first/JJ
such/JJ
promotion/NN
./.
Last/JJ
year/NN
,/,
J&B/NNP
Scotch/NNP
offered/VBD
500/CD
TWA/NNP
frequent/JJ
flier/NN
miles/NNS
in/IN
exchange/NN
for/IN
a/DT
label/NN
./.
And/CC
Dewar/NNP
's/POS
gave/VBD
discounts/NNS
on/IN
Scottish/JJ
merchandise/NN
to/TO
people/NNS
who/WP
sent/VBD
in/IN
bottle/NN
labels/NNS
./.
But/CC
the/DT
scope/NN
of/IN
Seagram/NNP
's/POS
Chivas/NNP
promotion/NN
sets/VBZ
it/PRP
apart/RB
./.
The/DT
current/JJ
campaign/NN
is/VBZ
just/RB
the/DT
first/JJ
leg/NN
of/IN
an/DT
aggressive/JJ
three-to-five-year/JJ
direct/JJ
marketing/NN
plan/NN
./.
Seagram/NNP
says/VBZ
the/DT
promotion/NN
is/VBZ
designed/VBN
to/TO
build/VB
brand/NN
loyalty/NN
rather/RB
than/IN
promote/VB
heavy/JJ
drinking/NN
./.
Seagram/NNP
asks/VBZ
customers/NNS
to/TO
buy/VB
only/RB
two/CD
or/CC
three/CD
bottles/NNS
over/IN
a/DT
12-month/JJ
period/NN
,/,
says/VBZ
Richard/NNP
Shaw/NNP
,/,
vice/NN
president/NN
of/IN
U.S./NNP
direct/JJ
marketing/NN
./.
``/``
We/PRP
're/VBP
not/RB
asking/VBG
them/PRP
to/TO
save/VB
up/RP
50/CD
proof-of-purchases/NNS
./.
We/PRP
're/VBP
not/RB
saying/VBG
drink/VB
more/JJR
,/,
we/PRP
're/VBP
saying/VBG
trade/NN
up/RP
./.
''/''
Goya/NNP
Concocts/VBZ
a/DT
Milk/NN
For/IN
Hispanic/JJ
Tastes/NNS
MOST/JJS
FOOD/NN
companies/NNS
these/DT
days/NNS
are/VBP
trimming/VBG
the/DT
fat/NN
and/CC
cholesterol/NN
content/NN
of/IN
their/PRP$
products/NNS
to/TO
appeal/VB
to/TO
health-conscious/JJ
consumers/NNS
./.
But/CC
Goya/NNP
Foods/NNPS
Inc./NNP
believes/VBZ
it/PRP
can/MD
milk/VB
some/DT
sales/NNS
by/IN
bucking/VBG
the/DT
trend/NN
./.
The/DT
Secaucus/NNP
,/,
N.J./NNP
,/,
company/NN
has/VBZ
formed/VBN
a/DT
joint/JJ
venture/NN
with/IN
a/DT
distributor/NN
called/VBN
La/NNP
Lecheria/NNP
to/TO
market/VB
a/DT
higher-fat/JJR
milk/NN
targeted/VBN
at/IN
Hispanic/JJ
consumers/NNS
./.
To/TO
give/VB
Leche/NNP
Fresca/NNP
the/DT
creamier/JJR
taste/NN
Goya/NNP
says/VBZ
Hispanics/NNPS
prefer/VBP
,/,
the/DT
new/JJ
brand/NN
has/VBZ
a/DT
butterfat/NN
content/NN
of/IN
3.8/CD
%/NN
./.
That/DT
compares/VBZ
with/IN
3.5/CD
%/NN
butterfat/NN
for/IN
whole/JJ
milk/NN
./.
A/DT
spokesman/NN
for/IN
Borden/NNP
Inc./NNP
,/,
the/DT
nation/NN
's/POS
largest/JJS
milk/NN
producer/NN
,/,
concedes/VBZ
Goya/NNP
may/MD
be/VB
on/IN
to/TO
something/NN
./.
Borden/NNP
sells/VBZ
considerably/RB
more/JJR
whole/JJ
milk/NN
than/IN
reduced-fat/JJ
milks/NNS
in/IN
southern/JJ
and/CC
Hispanic/JJ
markets/NNS
,/,
he/PRP
says/VBZ
./.
Borden/NNP
even/RB
tested/VBD
a/DT
milk/NN
with/IN
4/CD
%/NN
butterfat/NN
in/IN
the/DT
South/NNP
,/,
but/CC
decided/VBD
the/DT
market/NN
was/VBD
too/RB
small/JJ
./.
Goya/NNP
is/VBZ
selling/VBG
Leche/NNP
Fresca/NNP
in/IN
nearly/RB
500/CD
grocery/NN
stores/NNS
and/CC
bodegas/NNS
in/IN
New/NNP
York/NNP
and/CC
parts/NNS
of/IN
New/NNP
Jersey/NNP
./.
And/CC
it/PRP
's/VBZ
adding/VBG
15/CD
to/TO
20/CD
new/JJ
outlets/NNS
a/DT
day/NN
,/,
says/VBZ
Greg/NNP
Ricca/NNP
,/,
sales/NNS
director/NN
at/IN
La/NNP
Lecheria/NNP
./.
Because/IN
of/IN
Leche/NNP
Fresca/NNP
's/POS
success/NN
,/,
he/PRP
says/VBZ
,/,
the/DT
joint/JJ
venture/NN
is/VBZ
developing/VBG
other/JJ
dairy/NN
products/NNS
tailored/VBN
to/TO
Hispanic/JJ
tastes/NNS
./.
Jewelry/NN
Makers/NNS
Copy/VBP
Cosmetics/NNS
Sales/NNS
Ploys/NNS
FOR/IN
YEARS/NNS
,/,
costume/JJ
jewelry/NN
makers/NNS
fought/VBD
a/DT
losing/JJ
battle/NN
./.
Jewelry/NN
displays/NNS
in/IN
department/NN
stores/NNS
were/VBD
often/RB
cluttered/JJ
and/CC
uninspired/JJ
./.
And/CC
the/DT
merchandise/NN
was/VBD
,/,
well/UH
,/,
fake/JJ
./.
As/IN
a/DT
result/NN
,/,
marketers/NNS
of/IN
faux/JJ
gems/NNS
steadily/RB
lost/VBD
space/NN
in/IN
department/NN
stores/NNS
to/TO
more/RBR
fashionable/JJ
rivals/NNS
--/:
cosmetics/NNS
makers/NNS
./.
But/CC
lately/RB
,/,
retailers/NNS
say/VBP
,/,
fake/JJ
has/VBZ
become/VBN
more/RBR
fashionable/JJ
./.
And/CC
jewelry/NN
makers/NNS
are/VBP
beginning/VBG
to/TO
use/VB
many/JJ
of/IN
the/DT
same/JJ
marketing/NN
tricks/NNS
honed/VBN
in/IN
the/DT
aggressive/JJ
world/NN
of/IN
cosmetics/NNS
./.
Last/JJ
year/NN
,/,
the/DT
total/JJ
women/NNS
's/POS
fashion/NN
jewelry/NN
business/NN
topped/VBD
$/$
4.9/CD
billion/CD
,/,
says/VBZ
Karen/NNP
Alberg/NNP
,/,
editor/NN
of/IN
Accessories/NNP
magazine/NN
./.
And/CC
it/PRP
's/VBZ
growing/VBG
fast/RB
,/,
with/IN
annual/JJ
sales/NNS
gains/NNS
of/IN
more/JJR
than/IN
10/CD
%/NN
./.
To/TO
increase/VB
their/PRP$
share/NN
of/IN
that/DT
business/NN
,/,
jewelry/NN
makers/NNS
such/JJ
as/IN
Crystal/NNP
Brands/NNPS
Inc./NNP
's/POS
Trifari/NNP
and/CC
Monet/NNP
units/NNS
and/CC
Swank/NNP
Inc./NNP
,/,
maker/NN
of/IN
Anne/NNP
Klein/NNP
jewelry/NN
,/,
are/VBP
launching/VBG
new/JJ
lines/NNS
with/IN
as/RB
much/JJ
fanfare/NN
as/IN
the/DT
fragrance/NN
companies/NNS
./.
They/PRP
're/VBP
hiring/VBG
models/NNS
to/TO
stroll/VB
the/DT
aisles/NNS
sporting/VBG
their/PRP$
jewels/NNS
,/,
and/CC
they/PRP
're/VBP
even/RB
beginning/VBG
to/TO
borrow/VB
a/DT
perennial/JJ
favorite/NN
of/IN
the/DT
beauty/NN
business/NN
--/:
offering/VBG
a/DT
gift/NN
when/WRB
consumers/NNS
make/VBP
a/DT
purchase/NN
./.
``/``
We/PRP
've/VBP
started/VBN
trying/VBG
just/RB
about/IN
anything/NN
to/TO
keep/VB
sales/NNS
moving/VBG
in/IN
the/DT
stores/NNS
,/,
''/''
says/VBZ
Kim/NNP
Renk/NNP
,/,
a/DT
Swank/NNP
vice/NN
president/NN
./.
But/CC
there/EX
are/VBP
limits/NNS
./.
Ms./NNP
Renk/NNP
says/VBZ
retailers/NNS
nixed/VBD
a/DT
promotion/NN
for/IN
pins/NNS
with/IN
animal/NN
motifs/NNS
./.
Her/PRP$
idea/NN
:/:
bring/VB
in/RP
live/JJ
zoo/NN
animals/NNS
./.
Trifari/NNP
,/,
whose/WP$
national/JJ
ads/NNS
earlier/RB
this/DT
year/NN
included/VBD
paper/NN
cutouts/NNS
of/IN
its/PRP$
costume/NN
finery/NN
,/,
takes/VBZ
a/DT
tamer/JJR
approach/NN
./.
The/DT
company/NN
focuses/VBZ
on/IN
the/DT
how-to/JJ
aspects/NNS
,/,
says/VBZ
Andrew/NNP
E./NNP
Philip/NNP
,/,
president/NN
./.
Trifari/NNP
now/RB
trains/VBZ
sales/NNS
help/NN
to/TO
advise/VB
customers/NNS
on/IN
the/DT
best/JJS
earring/NN
styles/NNS
./.
But/CC
cosmetics/NNS
firms/NNS
still/RB
have/VBP
one/CD
big/JJ
marketing/NN
edge/NN
:/:
They/PRP
motivate/VBP
sales/NNS
people/NNS
with/IN
commissions/NNS
./.
Jewelry/NN
makers/NNS
rarely/RB
pay/VBP
commissions/NNS
and/CC
are/VBP
n't/RB
expected/VBN
to/TO
anytime/RB
soon/RB
./.
Odds/NNS
and/CC
Ends/NNS
DESPITE/IN
GROWING/VBG
interest/NN
in/IN
the/DT
environment/NN
,/,
U.S./NNP
consumers/NNS
have/VBP
n't/RB
shown/VBN
much/JJ
interest/NN
in/IN
refillable/JJ
packages/NNS
for/IN
household/NN
products/NNS
./.
Procter/NNP
&/CC
Gamble/NNP
Co./NNP
recently/RB
introduced/VBD
refillable/JJ
versions/NNS
of/IN
four/CD
products/NNS
,/,
including/VBG
Tide/NNP
and/CC
Mr./NNP
Clean/NNP
,/,
in/IN
Canada/NNP
,/,
but/CC
does/VBZ
n't/RB
plan/VB
to/TO
bring/VB
them/PRP
to/TO
the/DT
U.S/NNP
./.
Marketers/NNS
believe/VBP
most/JJS
Americans/NNPS
wo/MD
n't/RB
make/VB
the/DT
convenience/NN
trade-off/NN
.../:
./.
Braumeisters/NNPS
Ltd./NNP
tests/VBZ
a/DT
beer/NN
brewed/VBN
with/IN
oat/NN
bran/NN
,/,
rather/RB
than/IN
rice/NN
or/CC
corn/NN
./.
Called/VBN
Otto/NNP
's/POS
Original/NNP
Oat/NNP
Bran/NNP
Beer/NNP
,/,
the/DT
brew/NN
costs/VBZ
about/IN
$/$
12.75/CD
a/DT
case/NN
./.
No/DT
cholesterol/NN
,/,
of/IN
course/NN
./.
Northwest/NNP
Airlines/NNPS
settled/VBD
the/DT
remaining/VBG
lawsuits/NNS
filed/VBN
on/IN
behalf/NN
of/IN
156/CD
people/NNS
killed/VBN
in/IN
a/DT
1987/CD
crash/NN
,/,
but/CC
claims/NNS
against/IN
the/DT
jetliner/NN
's/POS
maker/NN
are/VBP
being/VBG
pursued/VBN
,/,
a/DT
federal/JJ
judge/NN
said/VBD
./.
Northwest/NNP
,/,
a/DT
unit/NN
of/IN
NWA/NNP
Inc./NNP
,/,
and/CC
McDonnell/NNP
Douglas/NNP
Corp./NNP
,/,
which/WDT
made/VBD
the/DT
MD-80/NN
aircraft/NN
,/,
also/RB
are/VBP
pursuing/VBG
counterclaims/NNS
against/IN
each/DT
other/JJ
in/IN
the/DT
crash/NN
near/IN
Detroit/NNP
Metropolitan/NNP
Airport/NNP
./.
Terms/NNS
of/IN
the/DT
settlements/NNS
for/IN
the/DT
remaining/VBG
145/CD
lawsuits/NNS
against/IN
Northwest/NNP
were/VBD
n't/RB
disclosed/VBN
./.
A/DT
total/NN
of/IN
157/CD
lawsuits/NNS
were/VBD
filed/VBN
on/IN
behalf/NN
of/IN
crash/NN
victims/NNS
./.
U.S./NNP
District/NNP
Judge/NNP
Julian/NNP
A./NN
Cook/NNP
Jr./NNP
announced/VBD
the/DT
settlements/NNS
as/IN
the/DT
jury/NN
trial/NN
was/VBD
to/TO
begin/VB
yesterday/NN
./.
He/PRP
reset/VB
opening/JJ
arguments/NNS
for/IN
today/NN
./.
The/DT
jury/NN
will/MD
resolve/VB
the/DT
claims/NNS
against/IN
McDonnell/NNP
Douglas/NNP
,/,
Northwest/NNP
's/POS
claim/NN
that/IN
a/DT
defect/NN
in/IN
the/DT
aircraft/NN
caused/VBD
the/DT
crash/NN
,/,
and/CC
McDonnell/NNP
Douglas/NNP
'/POS
claim/NN
that/IN
the/DT
plane/NN
was/VBD
improperly/RB
flown/VBN
./.
The/DT
National/NNP
Transportation/NNP
Safety/NNP
Board/NNP
ruled/VBD
that/IN
pilots/NNS
failed/VBD
to/TO
set/VB
the/DT
plane/NN
's/POS
wing/NN
flaps/NNS
and/CC
slats/NNS
properly/RB
for/IN
takeoff/NN
and/CC
failed/VBD
to/TO
make/VB
mandatory/JJ
preflight/JJ
checks/NNS
that/WDT
would/MD
have/VB
detected/VBN
the/DT
error/NN
./.
Also/RB
,/,
a/DT
cockpit/NN
warning/VBG
system/NN
failed/VBD
to/TO
alert/VB
the/DT
pilots/NNS
the/DT
flaps/NNS
and/CC
slats/NNS
were/VBD
not/RB
set/VBN
for/IN
takeoff/NN
,/,
the/DT
NTSB/NNP
said/VBD
./.
The/DT
only/JJ
passenger/NN
who/WP
survived/VBD
the/DT
crash/NN
was/VBD
Cecelia/NNP
Cichan/NNP
,/,
then/RB
4/CD
,/,
of/IN
Tempe/NNP
,/,
Ariz./NNP
,/,
whose/WP$
parents/NNS
and/CC
brother/NN
died/VBD
in/IN
the/DT
crash/NN
./.
She/PRP
now/RB
lives/VBZ
with/IN
relatives/NNS
in/IN
Alabama/NNP
./.
Sun/NNP
Myung/NNP
Moon/NNP
,/,
the/DT
Korean/JJ
evangelist-industrialist/NN
who/WP
in/IN
1954/CD
founded/VBD
the/DT
Unification/NNP
Church/NNP
,/,
remains/VBZ
the/DT
mystery/NN
man/NN
behind/IN
a/DT
multimillion-dollar/JJ
political/JJ
and/CC
publishing/VBG
operation/NN
based/VBN
in/IN
this/DT
country/NN
and/CC
catering/VBG
to/TO
the/DT
American/JJ
right/NN
./.
But/CC
there/EX
may/MD
be/VB
less/JJR
there/RB
than/IN
meets/VBZ
the/DT
eye/NN
./.
Mr./NNP
Moon/NNP
planned/VBD
to/TO
convert/VB
millions/NNS
of/IN
Americans/NNPS
to/TO
his/PRP$
unique/JJ
brand/NN
of/IN
Christianity/NNP
--/:
in/IN
which/WDT
he/PRP
plays/VBZ
the/DT
role/NN
of/IN
Old/NNP
Testament-style/JJ
temporal/JJ
,/,
political/JJ
messiah/NN
--/:
and/CC
then/RB
to/TO
make/VB
the/DT
U.S./NNP
part/NN
of/IN
a/DT
unified/JJ
international/JJ
theocracy/NN
./.
His/PRP$
original/JJ
strategy/NN
itself/PRP
a/DT
brilliant/JJ
innovation/NN
for/IN
spreading/VBG
a/DT
religion/NN
new/JJ
economic/JJ
enterprises/NNS
each/DT
time/NN
he/PRP
wanted/VBD
to/TO
extend/VB
and/CC
fund/VB
his/PRP$
various/JJ
religious/JJ
missions/NNS
./.
Tax-exempt/JJ
airport/NN
and/CC
street-corner/JJ
solicitations/NNS
were/VBD
intended/VBN
only/RB
to/TO
provide/VB
start-up/JJ
funds/NNS
./.
More/RBR
stable/JJ
industries/NNS
were/VBD
to/TO
build/VB
an/DT
economically/RB
viable/JJ
infrastructure/NN
for/IN
the/DT
Moon/NNP
movement/NN
in/IN
North/NNP
America/NNP
,/,
as/IN
they/PRP
had/VBD
in/IN
Japan/NNP
and/CC
South/NNP
Korea/NNP
./.
Then/RB
he/PRP
would/MD
move/VB
his/PRP$
movement/NN
to/TO
Europe/NNP
./.
But/CC
that/DT
was/VBD
not/RB
to/TO
be/VB
./.
Throughout/IN
the/DT
1970s/NNS
and/CC
early/RB
1980s/NNS
spokesmen/NNS
for/IN
both/DT
the/DT
Unification/NNP
Church/NNP
and/CC
its/PRP$
opponents/NNS
in/IN
the/DT
anticult/NN
movement/NN
gave/VBD
wildly/RB
exaggerated/JJ
membership/NN
figures/NNS
./.
Their/PRP$
legacy/NN
lives/VBZ
on/RP
./.
It/PRP
is/VBZ
still/RB
common/JJ
to/TO
read/VB
in/IN
the/DT
press/NN
that/IN
the/DT
church/NN
has/VBZ
10,000/CD
or/CC
more/JJR
full-time/JJ
American/JJ
members/NNS
and/CC
25,000/CD
``/``
associates/NNS
./.
''/''
Some/DT
estimates/NNS
have/VBP
gone/VBN
as/RB
high/JJ
as/IN
80,000/CD
members/NNS
./.
But/CC
internal/JJ
church/NN
documents/NNS
clearly/RB
show/VBP
that/IN
at/IN
its/PRP$
publicity-seeking/JJ
heights/NNS
,/,
as/IN
when/WRB
it/PRP
organized/VBD
a/DT
spectacular/JJ
Yankee/NNP
Stadium/NNP
bicentennial/JJ
rally/NN
in/IN
1976/CD
,/,
there/EX
actually/RB
were/VBD
only/JJ
about/IN
2,000/CD
full-time/JJ
Unification/NNP
Church/NNP
members/NNS
in/IN
the/DT
U.S./NNP
Mr./NNP
Moon/NNP
's/POS
support/NN
for/IN
a/DT
Watergate-beleaguered/JJ
Richard/NNP
Nixon/NNP
,/,
the/DT
Koreagate/NNP
scandal/NN
,/,
and/CC
his/PRP$
prison/NN
sentence/NN
for/IN
income-tax/NN
evasion/NN
did/VBD
not/RB
help/VB
the/DT
church/NN
's/POS
recruitment/NN
efforts/NNS
./.
Defections/NNS
,/,
burnouts/NNS
,/,
and/CC
abduction/NN
``/``
deprogrammings/NNS
''/''
kept/VBN
member/NN
turnover/NN
high/RB
./.
That/IN
the/DT
membership/NN
number/NN
has/VBZ
even/RB
kept/VBN
close/RB
to/TO
its/PRP$
1976/CD
size/NN
is/VBZ
the/DT
result/NN
of/IN
the/DT
``/``
graying/NN
''/''
of/IN
the/DT
church/NN
./.
Many/JJ
of/IN
the/DT
enthusiastic/JJ
young/JJ
``/``
Moonies/NNPS
''/''
of/IN
the/DT
Nixon/NNP
era/NN
who/WP
remained/VBD
faithful/NN
to/TO
Father/NNP
Moon/NNP
are/VBP
now/RB
parents/NNS
,/,
producing/VBG
new/JJ
members/NNS
by/IN
procreation/NN
rather/RB
than/IN
conversion/NN
./.
The/DT
reputed/JJ
wealth/NN
of/IN
the/DT
Unification/NNP
Church/NNP
is/VBZ
another/DT
matter/NN
of/IN
contention/NN
./.
For/IN
a/DT
while/NN
in/IN
the/DT
1970s/NNS
it/PRP
seemed/VBD
Mr./NNP
Moon/NNP
was/VBD
on/IN
a/DT
spending/JJ
spree/NN
,/,
with/IN
such/JJ
purchases/NNS
as/IN
the/DT
former/JJ
New/NNP
Yorker/NNP
Hotel/NNP
and/CC
its/PRP$
adjacent/JJ
Manhattan/NNP
Center/NNP
;/:
a/DT
fishing\/processing/JJ
conglomerate/NN
with/IN
branches/NNS
in/IN
Alaska/NNP
,/,
Massachusetts/NNP
,/,
Virginia/NNP
and/CC
Louisiana/NNP
;/:
a/DT
former/JJ
Christian/NNP
Brothers/NNPS
monastery/NN
and/CC
the/DT
Seagram/NNP
family/NN
mansion/NN
both/DT
picturesquely/RB
situated/VBN
on/IN
the/DT
Hudson/NNP
River/NNP
shares/NNS
in/IN
banks/NNS
from/IN
Washington/NNP
to/TO
Uruguay/NNP
;/:
a/DT
motion/NN
picture/NN
production/NN
company/NN
,/,
and/CC
newspapers/NNS
,/,
such/JJ
as/IN
the/DT
Washington/NNP
Times/NNP
,/,
the/DT
New/NNP
York/NNP
City/NNP
Tribune/NNP
the/DT
News/NNP
World/NNP
the/DT
successful/JJ
Spanish-language/JJ
Noticias/NNP
del/FW
Mundo/NNP
./.
Yet/RB
these/DT
purchases/NNS
can/MD
be/VB
misleading/JJ
./.
Most/JJS
were/VBD
obtained/VBN
with/IN
huge/JJ
inputs/NNS
of/IN
church/NN
money/NN
from/IN
South/NNP
Korea/NNP
and/CC
Japan/NNP
,/,
minimum/NN
cash/NN
downpayments/NNS
and/CC
sizable/JJ
mortgages/NNS
./.
Those/DT
teams/NNS
of/IN
young/JJ
fund-raisers/NNS
selling/VBG
flowers/NNS
,/,
peanuts/NNS
or/CC
begging/VBG
outright/RB
at/IN
traffic/NN
intersections/NNS
brought/VBN
in/RP
somewhere/RB
near/IN
$/$
20/CD
million/CD
a/DT
year/NN
during/IN
the/DT
mid-to-late/JJ
1970s/NNS
,/,
but/CC
those/DT
revenues/NNS
were/VBD
a/DT
pittance/NN
compared/VBN
to/TO
the/DT
costs/NNS
of/IN
Mr./NNP
Moon/NNP
's/POS
lavish/JJ
international/JJ
conferences/NNS
,/,
speaking/NN
tours/NNS
,/,
and/CC
assorted/JJ
land/NN
buys/NNS
./.
Only/JJ
his/PRP$
factories/NNS
in/IN
Japan/NNP
and/CC
Korea/NNP
,/,
employing/VBG
his/PRP$
followers/NNS
at/IN
subsistence/NN
wages/NNS
and/CC
producing/VBG
everything/NN
from/IN
rifles/NNS
to/TO
ginseng/NN
to/TO
expensive/JJ
marble/NN
vases/NNS
,/,
kept/VBD
the/DT
money/NN
flowing/VBG
westward/RB
./.
Virginia/NNP
Commonwealth/NNP
University/NNP
sociologist/NN
David/NNP
Bromley/NNP
,/,
who/WP
more/RBR
than/IN
any/DT
other/JJ
researcher/NN
has/VBZ
delved/VBN
into/IN
the/DT
complex/JJ
world/NN
of/IN
Unificationist/JJ
finances/NNS
,/,
has/VBZ
concluded/VBN
that/IN
profitable/JJ
operations/NNS
in/IN
the/DT
U.S./NNP
have/VBP
been/VBN
the/DT
exceptions/NNS
rather/RB
than/IN
the/DT
rule/NN
./.
Likewise/RB
,/,
journalists/NNS
John/NNP
Burgess/NNP
and/CC
Michael/NNP
Isikoff/NNP
of/IN
the/DT
Washington/NNP
Post/NNP
have/VBP
estimated/VBN
that/IN
at/IN
least/JJS
$/$
800/CD
million/CD
was/VBD
transferred/VBN
from/IN
Japan/NNP
to/TO
the/DT
U.S./NNP
to/TO
deal/VB
with/IN
the/DT
church/NN
's/POS
annual/JJ
operating/NN
losses/NNS
in/IN
this/DT
country/NN
./.
Mr./NNP
Moon/NNP
's/POS
two/CD
English-language/JJ
U.S./NNP
newspapers/NNS
illustrate/VBP
the/DT
scope/NN
of/IN
this/DT
financial/JJ
drain/NN
./.
Start-up/JJ
costs/NNS
for/IN
the/DT
Washington/NNP
Times/NNPS
alone/RB
were/VBD
close/JJ
to/TO
$/$
50/CD
million/CD
,/,
and/CC
the/DT
total/JJ
amount/NN
lost/VBN
in/IN
this/DT
journalistic/JJ
black/JJ
hole/NN
was/VBD
estimated/VBN
at/IN
$/$
150/CD
million/CD
by/IN
1984/CD
./.
Since/IN
then/RB
,/,
Moon/NNP
's/POS
organization/NN
has/VBZ
inaugurated/VBN
a/DT
pair/NN
of/IN
high-quality/JJ
glossy/JJ
opinion/NN
magazines/NNS
,/,
The/DT
World/NNP
and/CC
I/NNP
and/CC
Insight/NNP
,/,
which/WDT
are/VBP
a/DT
further/JJ
drain/NN
./.
Insiders/NNS
say/VBP
that/IN
not/RB
even/RB
their/PRP$
editors/NNS
know/VBP
for/IN
sure/JJ
how/WRB
much/JJ
these/DT
show-piece/JJ
publications/NNS
,/,
along/IN
with/IN
the/DT
newspapers/NNS
,/,
have/VBP
cost/VBN
Mr./NNP
Moon/NNP
./.
Many/JJ
American/JJ
church-owned/JJ
businesses/NNS
,/,
such/JJ
as/IN
a/DT
$/$
30/CD
million/CD
factory/NN
to/TO
build/VB
fishing/NN
vessels/NNS
,/,
are/VBP
defunct/JJ
./.
Some/DT
components/NNS
of/IN
the/DT
American/JJ
church/NN
had/VBD
their/PRP$
budgets/NNS
cut/VBN
in/IN
half/NN
last/JJ
year/NN
and/CC
again/RB
this/DT
year/NN
./.
The/DT
relatively/RB
small/JJ
academic/JJ
conferences/NNS
that/WDT
have/VBP
attracted/VBN
conservative/JJ
guests/NNS
--/:
and/CC
press/NN
scrutiny/NN
--/:
in/IN
recent/JJ
years/NNS
are/VBP
much/RB
more/RBR
narrowly/RB
targeted/JJ
and/CC
austere/JJ
than/IN
the/DT
thousand-person/JJ
get-togethers/NNS
in/IN
fancy/JJ
digs/NNS
and/CC
exotic/JJ
locales/NNS
of/IN
years/NNS
past/JJ
./.
I/PRP
attended/VBD
several/JJ
of/IN
these/DT
in/IN
the/DT
dual/JJ
role/NN
as/IN
a/DT
presenter/NN
of/IN
research/NN
findings/NNS
as/RB
well/RB
as/IN
an/DT
investigator/NN
of/IN
my/PRP$
hosts/NNS
./.
Mr./NNP
Moon/NNP
's/POS
Paragon/NNP
House/NNP
eventually/RB
even/RB
published/VBD
three/CD
of/IN
my/PRP$
co-edited/JJ
books/NNS
on/IN
religion/NN
and/CC
politics/NNS
./.
According/VBG
to/TO
veteran/NN
watchers/NNS
of/IN
Unificationist/JJ
affairs/NNS
,/,
such/JJ
as/IN
Dr./NNP
J./NNP
Gordon/NNP
Melton/NNP
,/,
director/NN
of/IN
the/DT
Institute/NNP
for/IN
the/DT
Study/NNP
of/IN
American/NNP
Religion/NNP
,/,
almost/RB
all/DT
operations/NNS
are/VBP
being/VBG
drastically/RB
reduced/VBN
as/IN
Mr./NNP
Moon/NNP
now/RB
concentrates/VBZ
more/RBR
on/IN
developing/VBG
his/PRP$
empire/NN
in/IN
the/DT
Far/NNP
East/NNP
./.
``/``
Everything/NN
,/,
''/''
one/CD
non-``/``
Moonie/NN
''/''
senior/JJ
consultant/NN
to/TO
the/DT
Unification/NNP
Church/NNP
recently/RB
told/VBD
me/PRP
in/IN
an/DT
interview/NN
,/,
``/``
is/VBZ
going/VBG
back/RB
to/TO
Korea/NNP
and/CC
Japan/NNP
./.
''/''
(/(
Europe/NNP
had/VBD
proved/VBN
even/RB
less/RBR
hospitable/JJ
than/IN
North/NNP
America/NNP
./.
European/JJ
politicians/NNS
were/VBD
less/RBR
reluctant/JJ
to/TO
have/VB
their/PRP$
governments/NNS
investigate/VB
and/CC
harass/VB
new/JJ
religions/NNS
./.
So/RB
Mr./NNP
Moon/NNP
is/VBZ
in/IN
retreat/NN
,/,
refocusing/VBG
on/IN
the/DT
Far/NNP
East/NNP
./.
South/NNP
Korea/NNP
and/CC
Japan/NNP
continue/VBP
to/TO
be/VB
profitable/JJ
./.
Moon/NNP
's/POS
Tong'Il/NNP
industry/NN
conglomerate/NN
is/VBZ
now/RB
investing/VBG
heavily/RB
in/IN
China/NNP
,/,
where/WRB
church/NN
accountants/NNS
have/VBP
high/JJ
hopes/NNS
of/IN
expanding/VBG
and/CC
attracting/VBG
converts/NNS
even/RB
in/IN
the/DT
wake/NN
of/IN
the/DT
bloody/JJ
massacre/NN
in/IN
Tiananmen/NNP
Square/NNP
./.
Panda/NNP
Motors/NNPS
is/VBZ
one/CD
such/JJ
investment/NN
./.
According/VBG
to/TO
senior/JJ
consultants/NNS
to/TO
the/DT
church/NN
,/,
Mr./NNP
Moon/NNP
has/VBZ
successfully/RB
negotiated/VBN
a/DT
joint/JJ
venture/NN
with/IN
the/DT
Chinese/JJ
government/NN
to/TO
build/VB
an/DT
automobile-parts/JJ
plant/NN
in/IN
Guangdong/NNP
Province/NNP
,/,
an/DT
area/NN
of/IN
China/NNP
with/IN
a/DT
substantial/JJ
Korean/JJ
minority/NN
./.
Mr./NNP
Moon/NNP
has/VBZ
agreed/VBN
to/TO
put/VB
up/RP
$/$
10/CD
million/CD
a/DT
year/NN
for/IN
25/CD
years/NNS
and/CC
keep/VB
the/DT
profits/NNS
in/IN
China/NNP
./.
In/IN
return/NN
,/,
he/PRP
has/VBZ
the/DT
government/NN
's/POS
blessing/NN
to/TO
build/VB
churches/NNS
and/CC
spread/VBD
Unificationism/NNP
in/IN
that/DT
country/NN
./.
Whatever/WDT
respectability/NN
and/CC
ties/NNS
to/TO
intellectuals/NNS
and/CC
opinion-makers/NNS
the/DT
publications/NNS
and/CC
conferences/NNS
bring/VBP
really/RB
are/VBP
salvage/NN
--/:
not/RB
the/DT
Rev./NNP
Moon/NNP
's/POS
original/JJ
final/JJ
goals/NNS
,/,
but/CC
the/DT
ones/NNS
for/IN
which/WDT
he/PRP
will/MD
have/VB
to/TO
settle/VB
./.
Mr./NNP
Shupe/NNP
is/VBZ
co-author/NN
David/NNP
G./NNP
Bromley/NNP
``/``
`/``

Moonies/NNS
'/''
in/IN
America/NNP
:/:
Cult/NN
,/,
Church/NN
,/,
and/CC
Crusade/NN
''/''
and/CC
``/``
Strange/JJ
Gods/NNS
:/:
The/DT
Great/JJ
American/JJ
Cult/NNP
Scare/NNP
./.
''/''
The/DT
Manville/NNP
Personal/NNP
Injury/NNP
Settlement/NNP
Trust/NNP
said/VBD
it/PRP
is/VBZ
considering/VBG
several/JJ
ways/NNS
to/TO
ease/VB
a/DT
liquidity/NN
crunch/NN
that/WDT
could/MD
include/VB
the/DT
sale/NN
of/IN
Manville/NNP
Corp./NNP
to/TO
a/DT
third/JJ
party/NN
./.
In/IN
a/DT
filing/NN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
,/,
the/DT
majority/NN
holder/NN
of/IN
Manville/NNP
acknowledged/VBD
that/IN
the/DT
cash/NN
portion/NN
of/IN
its/PRP$
initial/JJ
funding/NN
of/IN
$/$
765/CD
million/CD
will/MD
be/VB
depleted/VBN
next/JJ
year/NN
,/,
and/CC
that/IN
alternative/JJ
sources/NNS
of/IN
funds/NNS
will/MD
be/VB
necessary/JJ
to/TO
meet/VB
its/PRP$
obligations/NNS
./.
The/DT
trust/NN
,/,
which/WDT
was/VBD
created/VBN
as/IN
part/NN
of/IN
Manville/NNP
's/POS
bankruptcy-law/NN
reorganization/NN
to/TO
compensate/VB
victims/NNS
of/IN
asbestos-related/JJ
diseases/NNS
,/,
ultimately/RB
expects/VBZ
to/TO
receive/VB
$/$
2.5/CD
billion/CD
from/IN
Manville/NNP
,/,
but/CC
its/PRP$
cash/NN
flow/NN
from/IN
investments/NNS
has/VBZ
so/RB
far/RB
lagged/VBN
behind/IN
its/PRP$
payments/NNS
to/TO
victims/NNS
./.
Spokespersons/NNS
for/IN
both/DT
the/DT
trust/NN
and/CC
the/DT
company/NN
refused/VBD
to/TO
comment/VB
on/IN
whether/IN
any/DT
talks/NNS
with/IN
a/DT
possible/JJ
acquirer/NN
of/IN
Manville/NNP
had/VBD
actually/RB
taken/VBN
place/NN
./.
The/DT
trust/NN
is/VBZ
considering/VBG
a/DT
sale/NN
of/IN
its/PRP$
Manville/NNP
holdings/NNS
,/,
but/CC
Manville/NNP
has/VBZ
the/DT
right/NN
of/IN
first/JJ
refusal/NN
on/IN
any/DT
sales/NNS
of/IN
its/PRP$
stock/NN
held/VBN
by/IN
the/DT
trust/NN
./.
Manville/NNP
,/,
a/DT
forest/NN
and/CC
building/NN
products/NNS
concern/NN
,/,
has/VBZ
offered/VBN
to/TO
pay/VB
the/DT
trust/NN
$/$
500/CD
million/CD
for/IN
a/DT
majority/NN
of/IN
Manville/NNP
's/POS
convertible/JJ
preferred/JJ
stock/NN
./.
Manville/NNP
and/CC
the/DT
trust/NN
are/VBP
discussing/VBG
the/DT
offer/NN
,/,
but/CC
no/DT
decision/NN
has/VBZ
been/VBN
made/VBN
./.
The/DT
filing/NN
also/RB
said/VBD
the/DT
trust/NN
is/VBZ
considering/VBG
a/DT
sale/NN
of/IN
Manville/NNP
securities/NNS
in/IN
the/DT
open/JJ
market/NN
;/:
an/DT
extraordinary/JJ
dividend/NN
on/IN
the/DT
common/JJ
stock/NN
;/:
or/CC
a/DT
recapitalization/NN
of/IN
Manville/NNP
./.
The/DT
Soviet/NNP
Union/NNP
's/POS
jobless/JJ
rate/NN
is/VBZ
soaring/VBG
to/TO
27/CD
%/NN
in/IN
some/DT
areas/NNS
,/,
Pravda/NNP
said/VBD
./.
It/PRP
said/VBD
the/DT
situation/NN
is/VBZ
caused/VBN
by/IN
efforts/NNS
to/TO
streamline/VB
bloated/JJ
factory/NN
payrolls/NNS
./.
Unemployment/NN
has/VBZ
reached/VBN
27.6/CD
%/NN
in/IN
Azerbaijan/NNP
,/,
25.7/CD
%/NN
in/IN
Tadzhikistan/NNP
,/,
22.8/CD
%/NN
in/IN
Uzbekistan/NNP
,/,
18.8/CD
%/NN
in/IN
Turkmenia/NNP
,/,
18/CD
%/NN
in/IN
Armenia/NNP
and/CC
16.3/CD
%/NN
in/IN
Kirgizia/NNP
,/,
the/DT
Communist/NNP
Party/NNP
newspaper/NN
said/VBD
./.
All/DT
are/VBP
non-Russian/JJ
republics/NNS
along/IN
the/DT
southern/JJ
border/NN
of/IN
the/DT
Soviet/NNP
Union/NNP
,/,
and/CC
all/DT
but/CC
Kirgizia/NNP
have/VBP
reported/VBN
rioting/NN
in/IN
the/DT
past/JJ
six/CD
months/NNS
./.
The/DT
newspaper/NN
said/VBD
it/PRP
is/VBZ
past/JJ
time/NN
for/IN
the/DT
Soviet/NNP
Union/NNP
to/TO
create/VB
unemployment/NN
insurance/NN
and/CC
retraining/VBG
programs/NNS
like/IN
those/DT
of/IN
the/DT
West/NNP
./.
Pravda/NNP
gave/VBD
no/DT
estimate/NN
for/IN
overall/JJ
unemployment/NN
but/CC
said/VBD
an/DT
``/``
Association/NNP
of/IN
the/DT
Unemployed/NNP
''/''
has/VBZ
cropped/VBN
up/RB
that/DT
says/VBZ
the/DT
number/NN
of/IN
jobless/JJ
is/VBZ
23/CD
million/CD
Soviets/NNPS
,/,
or/CC
17/CD
%/NN
of/IN
the/DT
work/NN
force/NN
./.
An/DT
11-week/JJ
dispute/NN
involving/VBG
Australia/NNP
's/POS
1,640/CD
domestic/JJ
pilots/NNS
has/VBZ
slashed/VBN
airline/NN
earnings/NNS
and/CC
crippled/VBN
much/JJ
of/IN
the/DT
continent/NN
's/POS
tourist/NN
industry/NN
./.
``/``
The/DT
only/JJ
people/NNS
who/WP
are/VBP
flying/VBG
are/VBP
those/DT
who/WP
have/VBP
to/TO
,/,
''/''
said/VBD
Frank/NNP
Moore/NNP
,/,
chairman/NN
of/IN
the/DT
Australian/NNP
Tourist/NNP
Industry/NNP
Association/NNP
./.
He/PRP
added/VBD
:/:
``/``
How/WRB
is/VBZ
a/DT
travel/NN
agent/NN
going/VBG
to/TO
sell/VB
a/DT
holiday/NN
when/WRB
he/PRP
can/MD
not/RB
guarantee/VB
a/DT
return/NN
flight/NN
?/.
''/''
Transport/VB
giant/NN
TNT/NNP
,/,
which/WDT
owns/VBZ
half/NN
of/IN
one/CD
of/IN
the/DT
country/NN
's/POS
two/CD
major/JJ
domestic/JJ
carriers/NNS
,/,
said/VBD
the/DT
cost/NN
of/IN
the/DT
dispute/NN
had/VBD
been/VBN
heavy/JJ
,/,
cutting/VBG
TNT/NNP
's/POS
profits/NNS
70/CD
%/NN
to/TO
$/$
12/CD
million/CD
in/IN
the/DT
three/CD
months/NNS
to/TO
Sept./NNP
30/CD
./.
Brazilian/JJ
financier/NN
Naji/NNP
Nahas/NNP
,/,
who/WP
was/VBD
arrested/VBN
on/IN
Monday/NNP
after/IN
102/CD
days/NNS
in/IN
hiding/NN
,/,
is/VBZ
likely/JJ
to/TO
be/VB
interrogated/VBN
next/JJ
week/NN
by/IN
the/DT
Brazilian/JJ
judiciary/NN
./.
Mr./NNP
Nahas/NNP
,/,
who/WP
single-handedly/RB
provoked/VBD
a/DT
one-day/JJ
closure/NN
of/IN
Brazil/NNP
's/POS
stock/NN
markets/NNS
in/IN
June/NNP
when/WRB
he/PRP
failed/VBD
to/TO
honor/VB
a/DT
debt/NN
of/IN
$/$
31.1/CD
million/CD
owed/VBN
to/TO
his/PRP$
brokers/NNS
,/,
yesterday/NN
blamed/VBD
his/PRP$
predicament/NN
on/IN
the/DT
president/NN
of/IN
the/DT
Sao/NNP
Paulo/NNP
stock/NN
exchange/NN
;/:
a/DT
few/JJ
days/NNS
before/IN
Mr./NNP
Nahas/NNP
's/POS
failure/NN
,/,
the/DT
exchange/NN
raised/VBD
the/DT
required/JJ
margin/NN
on/IN
stock-margin/JJ
transactions/NNS
./.
China/NNP
's/POS
parliament/NN
ousted/VBD
two/CD
Hong/NNP
Kong/NNP
residents/NNS
from/IN
a/DT
panel/NN
drafting/VBG
a/DT
new/JJ
constitution/NN
for/IN
the/DT
colony/NN
./.
The/DT
two/CD
,/,
Szeto/NNP
Wah/NNP
and/CC
Martin/NNP
Lee/NNP
,/,
were/VBD
deemed/VBN
unfit/JJ
because/IN
they/PRP
had/VBD
condemned/VBN
China/NNP
's/POS
crackdown/NN
on/IN
its/PRP$
pro-democracy/JJ
movement/NN
./.
The/DT
committee/NN
is/VBZ
formulating/VBG
Hong/NNP
Kong/NNP
's/POS
constitution/NN
for/IN
when/WRB
it/PRP
reverts/VBZ
to/TO
Chinese/JJ
control/NN
in/IN
1997/CD
,/,
and/CC
Chinese/JJ
lawmakers/NNS
said/VBD
the/DT
two/CD
can/MD
only/RB
return/VB
if/IN
they/PRP
``/``
abandon/VBP
their/PRP$
antagonistic/JJ
stand/NN
against/IN
the/DT
Chinese/JJ
government/NN
and/CC
their/PRP$
attempt/NN
to/TO
nullify/VB
the/DT
Sino-British/JJ
joint/NN
declaration/NN
on/IN
Hong/NNP
Kong/NNP
./.
''/''
NUCLEAR/NN
REACTOR/NN
FOR/IN
ISRAEL/NNP
?/.
Israeli/JJ
officials/NNS
confirmed/VBD
that/IN
Energy/NNP
Minister/NNP
Moshe/NNP
Shahal/NNP
and/CC
his/PRP$
Canadian/JJ
counterpart/NN
,/,
Jake/NNP
Epp/NNP
,/,
discussed/VBD
a/DT
possible/JJ
Israeli/JJ
purchase/NN
of/IN
a/DT
$/$
1.1/CD
billion/CD
Canadian/JJ
nuclear/JJ
reactor/NN
for/IN
producing/VBG
electricity/NN
./.
However/RB
,/,
a/DT
Canadian/NNP
Embassy/NNP
official/NN
in/IN
Tel/NNP
Aviv/NNP
said/VBD
that/IN
Canada/NNP
was/VBD
unlikely/JJ
to/TO
sell/VB
the/DT
Candu/NNP
heavy-water/NN
reactor/NN
to/TO
Israel/NNP
since/IN
Israel/NNP
has/VBZ
n't/RB
signed/VBN
the/DT
Nuclear/NNP
Non-Proliferation/NNP
Treaty/NNP
./.
Israel/NNP
has/VBZ
been/VBN
accused/VBN
in/IN
the/DT
past/NN
of/IN
using/VBG
subterfuge/NN
to/TO
seek/VB
elements/NNS
needed/VBN
to/TO
develop/VB
nuclear/JJ
weapons/NNS
./.
The/DT
South/JJ
Korean/JJ
government/NN
is/VBZ
signing/VBG
a/DT
protocol/NN
today/NN
establishing/VBG
formal/JJ
diplomatic/JJ
relations/NNS
with/IN
Poland/NNP
./.
The/DT
two/CD
are/VBP
also/RB
signing/VBG
a/DT
trade/NN
agreement/NN
./.
South/JJ
Korean/JJ
government/NN
officials/NNS
said/VBD
they/PRP
do/VBP
n't/RB
expect/VB
that/IN
Seoul/NNP
can/MD
loan/VB
money/NN
to/TO
Warsaw/NNP
,/,
but/CC
it/PRP
can/MD
``/``
offer/VB
experience/NN
./.
''/''
Poland/NNP
is/VBZ
the/DT
second/JJ
Communist/JJ
nation/NN
to/TO
recognize/VB
the/DT
Seoul/NNP
government/NN
;/:
South/NNP
Korea/NNP
established/VBD
diplomatic/JJ
relations/NNS
with/IN
Hungary/NNP
in/IN
February/NNP
1989/CD
./.
Venezuela/NNP
will/MD
hold/VB
a/DT
debt-equity/JJ
auction/NN
Friday/NNP
,/,
with/IN
32/CD
potential/JJ
bidders/NNS
participating/VBG
./.
Earlier/RBR
this/DT
year/NN
,/,
Venezuela/NNP
announced/VBD
it/PRP
was/VBD
opening/VBG
up/RP
debt-equity/NN
swaps/NNS
to/TO
foreign/JJ
investors/NNS
but/CC
said/VBD
the/DT
program/NN
would/MD
be/VB
limited/JJ
to/TO
a/DT
net/JJ
disbursement/NN
of/IN
$/$
600/CD
million/CD
a/DT
year/NN
./.
Friday/NNP
's/POS
auction/NN
will/MD
be/VB
limited/JJ
to/TO
$/$
150/CD
million/CD
disbursed/VBN
by/IN
the/DT
Central/NNP
Bank/NNP
to/TO
potential/JJ
investors/NNS
./.
The/DT
office/NN
of/IN
foreign/JJ
investment/NN
has/VBZ
authorized/VBN
some/DT
$/$
1.78/CD
billion/CD
worth/NN
of/IN
investment/NN
proposals/NNS
,/,
said/VBD
Edwin/NNP
Perozo/NNP
,/,
superintendent/NN
of/IN
foreign/JJ
investment/NN
./.
Most/JJS
of/IN
the/DT
proposals/NNS
are/VBP
in/IN
tourism/NN
,/,
basic/JJ
industry/NN
and/CC
fishery/NN
and/CC
agro-industry/JJ
projects/NNS
,/,
he/PRP
said/VBD
./.
Under/IN
the/DT
debt-equity/JJ
program/NN
,/,
potential/JJ
investors/NNS
will/MD
submit/VB
sealed/JJ
bids/NNS
on/IN
the/DT
percentage/NN
of/IN
discount/NN
they/PRP
are/VBP
willing/JJ
to/TO
purchase/VB
the/DT
debt/NN
at/IN
,/,
and/CC
the/DT
bids/NNS
will/MD
be/VB
allocated/VBN
based/VBN
on/IN
these/DT
discount/NN
offers/NNS
./.
The/DT
Venezuelan/JJ
central/JJ
bank/NN
set/VBD
a/DT
30/CD
%/NN
floor/NN
on/IN
the/DT
bidding/NN
./.
A/DT
song/NN
by/IN
American/JJ
singer/NN
Tracy/NNP
Chapman/NNP
praising/VBG
jailed/JJ
black/JJ
leader/NN
Nelson/NNP
Mandela/NNP
was/VBD
banned/VBN
from/IN
South/JJ
African/JJ
state/NN
radio/NN
and/CC
television/NN
./.
The/DT
South/NNP
African/NNP
Broadcasting/NNP
Corp./NNP
said/VBD
the/DT
song/NN
``/``
Freedom/NN
Now/RB
''/''
was/VBD
``/``
undesirable/JJ
for/IN
broadcasting/NN
./.
''/''
.../:
Britain/NNP
's/POS
House/NNP
of/IN
Commons/NNPS
passed/VBD
a/DT
law/NN
that/WDT
will/MD
force/VB
English/JJ
soccer/NN
fans/NNS
to/TO
carry/VB
identity/NN
cards/NNS
to/TO
enter/VB
stadiums/NNS
./.
The/DT
``/``
anti-hooligan/JJ
''/''
law/NN
,/,
which/WDT
would/MD
deprive/VB
troublemakers/NNS
of/IN
cards/NNS
,/,
must/MD
be/VB
ratified/VBN
by/IN
the/DT
House/NNP
of/IN
Lords/NNPS
and/CC
is/VBZ
expected/VBN
to/TO
become/VB
effective/JJ
early/JJ
next/JJ
year/NN
./.
A/DT
federal/JJ
judge/NN
ruled/VBD
that/IN
Imelda/NNP
Marcos/NNP
was/VBD
n't/RB
brought/VBN
to/TO
the/DT
U.S./NNP
against/IN
her/PRP$
will/NN
and/CC
that/IN
marital/JJ
privileges/NNS
,/,
which/WDT
protect/VBP
spouses/NNS
from/IN
incriminating/VBG
each/DT
other/JJ
,/,
do/VBP
n't/RB
apply/VB
in/IN
her/PRP$
case/NN
./.
As/IN
a/DT
result/NN
,/,
Judge/NNP
John/NNP
F./NNP
Keenan/NNP
of/IN
New/NNP
York/NNP
ordered/VBD
Mrs./NNP
Marcos/NNP
to/TO
turn/VB
over/RB
to/TO
the/DT
court/NN
all/DT
pleadings/NNS
and/CC
documents/NNS
she/PRP
may/MD
have/VB
filed/VBN
in/IN
foreign/JJ
countries/NNS
in/IN
opposition/NN
to/TO
U.S./NNP
requests/NNS
for/IN
evidence/NN
./.
Mrs./NNP
Marcos/NNP
had/VBD
claimed/VBN
that/IN
she/PRP
did/VBD
n't/RB
have/VB
to/TO
turn/VB
over/RP
the/DT
documents/NNS
because/IN
she/PRP
was/VBD
brought/VBN
here/RB
involuntarily/RB
and/CC
because/RB
providing/VBG
the/DT
materials/NNS
would/MD
violate/VB
her/PRP$
marital/JJ
privilege/NN
./.
In/IN
1988/CD
,/,
a/DT
year/NN
and/CC
a/DT
half/NN
after/IN
Mrs./NNP
Marcos/NNP
and/CC
her/PRP$
late/JJ
husband/NN
,/,
Ferdinand/NNP
Marcos/NNP
,/,
the/DT
ousted/JJ
president/NN
of/IN
the/DT
Philippines/NNPS
,/,
fled/VBD
the/DT
Philippines/NNPS
for/IN
Hawaii/NNP
,/,
they/PRP
were/VBD
charged/VBN
with/IN
racketeering/NN
,/,
conspiracy/NN
,/,
obstruction/NN
of/IN
justice/NN
and/CC
mail/NN
fraud/NN
in/IN
a/DT
scheme/NN
in/IN
which/WDT
they/PRP
allegedly/RB
embezzled/VBD
more/JJR
than/IN
$/$
100/CD
million/CD
from/IN
their/PRP$
homeland/NN
./.
Much/JJ
of/IN
the/DT
money/NN
was/VBD
fraudulently/RB
concealed/VBN
through/IN
purchases/NNS
of/IN
prime/JJ
Manhattan/NNP
real/JJ
estate/NN
,/,
federal/JJ
prosecutors/NNS
have/VBP
charged/VBN
./.
Mrs./NNP
Marcos/NNP
's/POS
trial/NN
is/VBZ
expected/VBN
to/TO
begin/VB
in/IN
March/NNP
./.
U.S./NNP
law/NN
requires/VBZ
criminal/JJ
defendants/NNS
to/TO
turn/VB
over/RP
foreign/JJ
documents/NNS
such/JJ
as/IN
those/DT
sought/VBN
in/IN
the/DT
Marcos/NNP
case/NN
./.
The/DT
law/NN
is/VBZ
meant/VBN
to/TO
overcome/VB
delays/NNS
caused/VBN
by/IN
defendants/NNS
'/POS
use/NN
of/IN
foreign/JJ
procedures/NNS
to/TO
block/VB
U.S./NNP
requests/NNS
for/IN
records/NNS
,/,
Judge/NNP
Keenan/NNP
said/VBD
in/IN
his/PRP$
opinion/NN
./.
For/IN
instance/NN
,/,
the/DT
documents/NNS
could/MD
involve/VB
foreign/JJ
business/NN
dealings/NNS
or/CC
bank/NN
accounts/NNS
./.
The/DT
U.S./NNP
has/VBZ
charged/VBN
that/IN
the/DT
Marcoses/NNPS
'/POS
alleged/VBN
crimes/NNS
involved/VBD
bank/NN
accounts/NNS
in/IN
the/DT
Philippines/NNPS
,/,
Hong/NNP
Kong/NNP
,/,
the/DT
U.S./NNP
and/CC
other/JJ
countries/NNS
./.
On/IN
the/DT
allegation/NN
of/IN
kidnapping/NN
,/,
Judge/NNP
Keenan/NNP
wrote/VBD
,/,
``/``
The/DT
suggestion/NN
that/IN
Mrs./NNP
Marcos/NNP
was/VBD
brought/VBN
to/TO
this/DT
country/NN
against/IN
her/PRP$
will/NN
is/VBZ
unsupported/JJ
by/IN
affidavit/NN
or/CC
affirmation/NN
./.
''/''
The/DT
judge/NN
also/RB
said/VBD
the/DT
two/CD
marital/JJ
testimonial/JJ
privileges/NNS
cited/VBN
by/IN
Mrs./NNP
Marcos/NNP
do/VBP
n't/RB
apply/VB
./.
The/DT
first/JJ
one/NN
permits/VBZ
a/DT
witness/NN
to/TO
refuse/VB
to/TO
testify/VB
against/IN
her/PRP$
spouse/NN
./.
But/CC
Judge/NNP
Keenan/NNP
said/VBD
that/DT
privilege/NN
's/POS
purpose/NN
is/VBZ
``/``
fostering/VBG
harmony/NN
in/IN
marriage/NN
./.
''/''
Because/IN
Mr./NNP
Marcos/NNP
died/VBD
Sept./NNP
28/CD
,/,
the/DT
privilege/NN
can/MD
no/RB
longer/RB
apply/VB
,/,
the/DT
judge/NN
said/VBD
./.
The/DT
second/JJ
marital/JJ
privilege/NN
cited/VBN
by/IN
Mrs./NNP
Marcos/NNP
protects/VBZ
confidential/JJ
communications/NNS
between/IN
spouses/NNS
./.
But/CC
Judge/NNP
Keenan/NNP
said/VBD
that/DT
privilege/NN
is/VBZ
meant/VBN
to/TO
protect/VB
private/JJ
utterances/NNS
--/:
not/RB
litigation/NN
papers/NNS
filed/VBN
with/IN
foreign/JJ
governments/NNS
,/,
as/IN
Mrs./NNP
Marcos/NNP
's/POS
attorneys/NNS
maintained/VBD
./.
Though/IN
Judge/NNP
Keenan/NNP
threw/VBD
out/RP
most/JJS
of/IN
Mrs./NNP
Marcos/NNP
's/POS
objections/NNS
,/,
he/PRP
agreed/VBD
with/IN
one/CD
of/IN
her/PRP$
concerns/NNS
:/:
that/IN
turning/VBG
over/RP
the/DT
foreign/JJ
documents/NNS
could/MD
violate/VB
the/DT
defendant/NN
's/POS
constitutional/JJ
right/NN
against/IN
self-incrimination/NN
./.
As/IN
a/DT
result/NN
,/,
he/PRP
said/VBD
he/PRP
will/MD
examine/VB
the/DT
Marcos/NNP
documents/NNS
sought/VBN
by/IN
the/DT
prosecutors/NNS
to/TO
determine/VB
whether/IN
turning/VBG
over/RP
the/DT
filings/NNS
is/VBZ
self-incrimination/NN
./.
Judge/NNP
Keenan/NNP
also/RB
directed/VBD
the/DT
prosecutors/NNS
to/TO
show/VB
that/IN
Mrs./NNP
Marcos/NNP
's/POS
Fifth/NNP
Amendment/NNP
right/NN
against/IN
self-incrimination/NN
wo/MD
n't/RB
be/VB
violated/VBN
./.
Mrs./NNP
Marcos/NNP
's/POS
attorney/NN
in/IN
New/NNP
York/NNP
,/,
Sandor/NNP
Frankel/NNP
,/,
declined/VBD
to/TO
comment/VB
on/IN
the/DT
ruling/NN
./.
Mrs./NNP
Marcos/NNP
has/VBZ
n't/RB
admitted/VBN
that/IN
she/PRP
filed/VBD
any/DT
documents/NNS
such/JJ
as/IN
those/DT
sought/VBN
by/IN
the/DT
government/NN
./.
Charles/NNP
LaBella/NNP
,/,
the/DT
assistant/NN
U.S./NNP
attorney/NN
prosecuting/VBG
the/DT
Marcos/NNP
case/NN
,/,
did/VBD
n't/RB
return/VB
phone/NN
calls/NNS
seeking/VBG
comment/NN
./.
U.S/NNP
./.
AND/CC
BRITISH/JJ
LAW/NN
FIRMS/NNS
announce/VBP
rare/JJ
joint/JJ
venture/NN
in/IN
Tokyo/NNP
./.
Sidley/NNP
&/CC
Austin/NNP
,/,
a/DT
leading/VBG
Chicago-based/JJ
law/NN
firm/NN
,/,
and/CC
Ashurst/NNP
Morris/NNP
Crisp/NNP
,/,
a/DT
midsized/JJ
London/NNP
firm/NN
of/IN
solicitors/NNS
,/,
are/VBP
scheduled/VBN
today/NN
to/TO
announce/VB
plans/NNS
to/TO
open/VB
a/DT
joint/JJ
office/NN
in/IN
Tokyo/NNP
./.
The/DT
firms/NNS
will/MD
be/VB
registered/VBN
under/IN
Japanese/JJ
law/NN
as/IN
foreign/JJ
legal/JJ
consultants/NNS
and/CC
their/PRP$
practice/NN
with/IN
Japanese/JJ
clients/NNS
will/MD
be/VB
limited/VBN
to/TO
advising/VBG
them/PRP
on/IN
matters/NNS
of/IN
foreign/JJ
law/NN
./.
The/DT
office/NN
may/MD
also/RB
be/VB
able/JJ
to/TO
advise/VB
foreign/JJ
and/CC
multinational/JJ
clients/NNS
on/IN
international/JJ
law/NN
and/CC
general/JJ
matters/NNS
./.
The/DT
office/NN
will/MD
provide/VB
``/``
one-stop/JJ
shopping/NN
''/''
for/IN
Japanese/JJ
financial/JJ
institutions/NNS
and/CC
other/JJ
clients/NNS
seeking/VBG
advice/NN
on/IN
access/NN
to/TO
the/DT
world/NN
capital/NN
markets/NNS
,/,
according/VBG
to/TO
A./NN
Bruce/NNP
Schimberg/NNP
,/,
Sidley/NNP
's/POS
senior/JJ
banking/NN
specialist/NN
,/,
who/WP
will/MD
move/VB
to/TO
Tokyo/NNP
from/IN
Chicago/NNP
to/TO
open/VB
the/DT
office/NN
next/JJ
year/NN
./.
The/DT
Sidley-Ashurst/NNP
venture/NN
will/MD
also/RB
be/VB
staffed/VBN
by/IN
another/DT
Sidley/NNP
partner/NN
specializing/VBG
in/IN
corporate/JJ
law/NN
,/,
a/DT
partner/NN
from/IN
Ashurst/NNP
concentrating/VBG
on/IN
acquisitions/NNS
and/CC
a/DT
Japanese/JJ
attorney/NN
./.
The/DT
office/NN
will/MD
tap/VB
the/DT
resources/NNS
of/IN
Sidley/NNP
's/POS
700/CD
lawyers/NNS
in/IN
the/DT
U.S./NNP
,/,
London/NNP
and/CC
Singapore/NNP
as/RB
well/RB
as/IN
the/DT
400/CD
Ashurst/NNP
staff/NN
members/NNS
in/IN
London/NNP
and/CC
Brussels/NNP
./.
Ashurst/NNP
is/VBZ
new/JJ
to/TO
the/DT
Far/NNP
East/NNP
./.
Sidley/NNP
will/MD
maintain/VB
its/PRP$
association/NN
with/IN
the/DT
Hashidate/NNP
Law/NNP
Office/NNP
in/IN
Tokyo/NNP
./.
THE/DT
UNITED/NNP
AUTO/NNP
WORKERS/NNPS
said/VBD
it/PRP
will/MD
seek/VB
a/DT
rehearing/NN
of/IN
a/DT
U.S./NNP
appellate/JJ
court/NN
ruling/NN
against/IN
the/DT
union/NN
's/POS
claim/NN
that/IN
the/DT
state/NN
of/IN
Michigan/NNP
engages/VBZ
in/IN
wage-discrimination/NN
against/IN
female/JJ
employees/NNS
./.
A/DT
three-judge/JJ
panel/NN
of/IN
the/DT
court/NN
in/IN
Cincinnati/NNP
made/VBD
the/DT
ruling/NN
Saturday/NNP
./.
The/DT
UAW/NNP
is/VBZ
seeking/VBG
a/DT
hearing/NN
by/IN
the/DT
full/JJ
14-judge/JJ
panel/NN
./.
The/DT
union/NN
sued/VBD
the/DT
state/NN
in/IN
November/NNP
1985/CD
,/,
alleging/VBG
that/IN
it/PRP
intentionally/RB
segregated/VBD
job/NN
classifications/NNS
by/IN
sex/NN
and/CC
paid/VBD
employees/NNS
in/IN
predominantly/RB
female/JJ
jobs/NNS
less/JJR
than/IN
males/NNS
in/IN
comparable/JJ
jobs/NNS
./.
The/DT
UAW/NNP
also/RB
charged/VBD
that/IN
the/DT
state/NN
applied/VBD
its/PRP$
own/JJ
standards/NNS
for/IN
determining/VBG
pay/NN
in/IN
a/DT
discriminatory/JJ
manner/NN
./.
In/IN
November/NNP
1987/CD
,/,
a/DT
district/NN
court/NN
judge/NN
in/IN
Detroit/NNP
ruled/VBD
against/IN
the/DT
UAW/NNP
./.
The/DT
union/NN
is/VBZ
the/DT
bargaining/NN
representative/NN
for/IN
more/JJR
than/IN
20,000/CD
Michigan/NNP
state/NN
employees/NNS
./.
NEW/NNP
JERSEY/NNP
MERGER/NN
:/:
One/CD
of/IN
the/DT
largest/JJS
law/NN
firms/NNS
in/IN
central/JJ
New/NNP
Jersey/NNP
has/VBZ
been/VBN
created/VBN
through/IN
the/DT
merger/NN
of/IN
Norris/NNP
,/,
McLaughlin/NNP
&/CC
Marcus/NNP
,/,
a/DT
41-lawyer/JJ
firm/NN
,/,
and/CC
Manger/NNP
,/,
Kalison/NNP
,/,
McBride/NNP
&/CC
Webb/NNP
,/,
a/DT
health-care/NN
specialty/NN
law/NN
firm/NN
with/IN
14/CD
lawyers/NNS
./.
Norris/NNP
McLaughlin/NNP
is/VBZ
a/DT
general-practice/JJ
firm/NN
that/WDT
has/VBZ
expanded/VBN
recently/RB
into/IN
such/JJ
specialties/NNS
as/IN
banking/NN
,/,
labor/NN
and/CC
environmental/JJ
work/NN
./.
The/DT
merged/VBN
firm/NN
will/MD
carry/VB
Norris/NNP
McLaughlin/NNP
's/POS
name/NN
./.
DRUG/NN
WARS/NNS
:/:
A/DT
Texas/NNP
legislator/NN
proposes/VBZ
color-coding/VBG
drivers/NNS
'/POS
licenses/NNS
of/IN
some/DT
drug/NN
offenders/NNS
./.
The/DT
bill/NN
would/MD
authorize/VB
courts/NNS
to/TO
order/VB
the/DT
licenses/NNS
as/IN
a/DT
condition/NN
of/IN
probation/NN
./.
State/NNP
Senator/NNP
J.E./NNP
``/``
Buster/NNP
''/''
Brown/NNP
,/,
a/DT
Republican/NNP
who/WP
is/VBZ
running/VBG
for/IN
Texas/NNP
attorney/NN
general/NN
,/,
introduced/VBD
the/DT
bill/NN
./.
He/PRP
said/VBD
an/DT
altered/JJ
license/NN
would/MD
be/VB
an/DT
``/``
embarrassment/NN
''/''
to/TO
teenagers/NNS
and/CC
young/JJ
adults/NNS
and/CC
would/MD
act/VB
as/IN
a/DT
deterrant/JJ
to/TO
drug/NN
use/NN
./.
Richard/NNP
Avena/NNP
,/,
executive/NN
director/NN
of/IN
the/DT
Texas/NNP
Civil/NNP
Liberties/NNPS
Union/NNP
,/,
called/VBD
the/DT
proposal/NN
``/``
political/JJ
gimmickry/NN
,/,
''/''
and/CC
said/VBD
it/PRP
fails/VBZ
to/TO
recognize/VB
the/DT
drug/NN
problem/NN
as/IN
a/DT
health/NN
issue/NN
./.
The/DT
amendment/NN
,/,
offered/VBN
by/IN
Rep./NNP
Douglas/NNP
Bosco/NNP
D./NNP
,/,
Calif./NNP
283-132/JJ
during/IN
debate/NN
on/IN
a/DT
bill/NN
designed/VBN
to/TO
strengthen/VB
the/DT
Transportation/NNP
Department/NNP
's/POS
authority/NN
in/IN
dealing/VBG
with/IN
leveraged/JJ
buy-outs/NNS
of/IN
airlines/NNS
./.
The/DT
bill/NN
would/MD
require/VB
the/DT
agency/NN
to/TO
block/VB
the/DT
acquisition/NN
of/IN
15/CD
%/NN
or/CC
more/JJR
of/IN
an/DT
airline/NN
's/POS
stock/NN
if/IN
the/DT
purchase/NN
threatened/VBD
safety/NN
,/,
reduced/VBD
the/DT
carrier/NN
's/POS
ability/NN
to/TO
compete/VB
,/,
or/CC
put/VBD
the/DT
airline/NN
under/IN
foreign/JJ
control/NN
./.
Debate/NN
on/IN
the/DT
legislation/NN
,/,
which/WDT
faces/VBZ
a/DT
veto/NN
threat/NN
from/IN
President/NNP
Bush/NNP
,/,
is/VBZ
to/TO
continue/VB
today/NN
./.
The/DT
amendment/NN
would/MD
require/VB
the/DT
department/NN
to/TO
block/VB
the/DT
purchase/NN
of/IN
a/DT
major/JJ
airline/NN
by/IN
anyone/NN
who/WP
has/VBZ
run/VBN
two/CD
or/CC
more/JJR
carriers/NNS
that/WDT
have/VBP
filed/VBN
for/IN
protection/NN
from/IN
creditors/NNS
under/IN
Chapter/NN
11/CD
of/IN
the/DT
Bankruptcy/NNP
Code/NNP
./.
In/IN
1983/CD
,/,
Texas/NNP
Air/NNP
's/POS
Continental/NNP
Airlines/NNPS
filed/VBD
for/IN
bankruptcy/NN
./.
Earlier/RBR
this/DT
year/NN
,/,
Texas/NNP
Air/NNP
's/POS
Eastern/NNP
Airlines/NNPS
filed/VBD
for/IN
bankruptcy/NN
./.
``/``
This/DT
ought/MD
to/TO
be/VB
subtitled/VBN
the/DT
`/``
Do/VBP
n't/RB
let/VB
Frank/NNP
Lorenzo/NNP
take/VB
over/IN
another/DT
airline/NN
'/''
amendment/NN
,/,
''/''
said/VBD
Rep./NNP
James/NNP
Oberstar/NNP
D./NNP
,/,
Minn./NNP
chairman/NN
of/IN
the/DT
House/NNP
aviation/NN
subcommittee/NN
,/,
who/WP
argued/VBD
that/IN
the/DT
provision/NN
was/VBD
unnecessary/JJ
because/IN
the/DT
bill/NN
already/RB
would/MD
give/VB
the/DT
department/NN
ample/JJ
power/NN
to/TO
block/VB
undesirable/JJ
deals/NNS
./.
For/IN
years/NNS
,/,
a/DT
strict/JJ
regimen/NN
governed/VBD
the/DT
staff/NN
meetings/NNS
at/IN
Nissan/NNP
Motor/NNP
Co./NNP
's/POS
technical/JJ
center/NN
in/IN
Tokyo/NNP
's/POS
western/JJ
suburbs/NNS
./.
Employees/NNS
wore/VBD
identification/NN
badges/NNS
listing/VBG
not/RB
only/RB
their/PRP$
names/NNS
but/CC
also/RB
their/PRP$
dates/NNS
of/IN
hire/NN
./.
No/DT
one/NN
could/MD
voice/VB
an/DT
opinion/NN
until/IN
everybody/NN
with/IN
more/JJR
seniority/NN
had/VBD
spoken/VBN
first/RB
,/,
so/RB
younger/JJR
employees/NNS
--/:
often/RB
the/DT
most/RBS
enthusiastic/JJ
and/CC
innovative/JJ
--/:
seldom/RB
spoke/VBD
up/RB
at/IN
all/DT
./.
But/CC
in/IN
1986/CD
,/,
the/DT
badges/NNS
and/CC
the/DT
``/``
do/VBP
n't/RB
speak/VB
out/IN
of/IN
turn/NN
''/''
rule/NN
were/VBD
abolished/VBN
--/:
early/JJ
steps/NNS
in/IN
a/DT
cultural/JJ
revolution/NN
still/RB
rolling/VBG
on/RB
with/IN
all/PDT
the/DT
subtlety/NN
of/IN
a/DT
freight/NN
train/NN
./.
In/IN
recent/JJ
years/NNS
,/,
Nissan/NNP
has/VBZ
instituted/VBN
flex-time/JJ
work/NN
schedules/NNS
and/CC
allowed/VBN
employees/NNS
to/TO
dress/VB
casually/RB
,/,
even/RB
in/IN
blue/JJ
jeans/NNS
./.
A/DT
rule/NN
forbidding/VBG
staffers/NNS
to/TO
own/JJ
competitors/NNS
'/POS
cars/NNS
has/VBZ
been/VBN
lifted/VBN
,/,
and/CC
now/RB
many/JJ
designers/NNS
drive/VBP
foreign/JJ
cars/NNS
to/TO
get/VB
useful/JJ
ideas/NNS
./.
Nissan/NNP
's/POS
decades-old/JJ
corporate/JJ
song/NN
filled/VBN
with/IN
references/NNS
to/TO
Mount/NNP
Fuji/NNP
has/VBZ
been/VBN
scrapped/VBN
in/IN
favor/NN
of/IN
a/DT
snappy/JJ
tune/NN
sung/VBN
by/IN
a/DT
popular/JJ
Japanese/JJ
vocalist/NN
./.
And/CC
in/IN
a/DT
Japanese/JJ
corporate/JJ
first/JJ
,/,
Nissan/NNP
recently/RB
opened/VBD
the/DT
first/JJ
coed/NN
company/NN
dormitory/NN
for/IN
single/JJ
employees/NNS
at/IN
the/DT
suburban/JJ
Tokyo/NNP
technical/JJ
center/NN
./.
``/``
We/PRP
had/VBD
lots/NNS
of/IN
internal/JJ
debate/NN
about/IN
this/DT
one/NN
,/,
''/''
concedes/VBZ
Tadahiko/NNP
Fukuyama/NNP
,/,
a/DT
senior/JJ
public-relations/NNS
official/NN
./.
``/``
But/CC
in/IN
the/DT
end/NN
,/,
top/JJ
management/NN
decided/VBD
to/TO
follow/VB
the/DT
voice/NN
of/IN
the/DT
younger/JJR
generation/NN
./.
''/''
This/DT
corporate/JJ
glasnost/FW
is/VBZ
a/DT
big/JJ
reason/NN
Nissan/NNP
,/,
after/IN
years/NNS
of/IN
making/VBG
lackluster/JJ
cars/NNS
and/CC
lousy/JJ
profits/NNS
,/,
has/VBZ
loosened/VBN
up/RP
its/PRP$
rigid/JJ
ways/NNS
and/CC
now/RB
is/VBZ
riding/VBG
a/DT
string/NN
of/IN
hits/NNS
,/,
ranging/VBG
from/IN
the/DT
sleek/JJ
Maxima/NNP
sedan/NN
and/CC
Porsche-like/JJ
300ZX/NNP
to/TO
the/DT
whimsically/RB
nostalgic/JJ
Pao/NNP
,/,
a/DT
minicar/NN
sold/VBN
only/RB
in/IN
Japan/NNP
./.
The/DT
company/NN
's/POS
turnaround/NN
is/VBZ
far/RB
from/IN
complete/JJ
;/:
many/JJ
crucial/JJ
tests/NNS
are/VBP
just/RB
beginning/VBG
./.
But/CC
its/PRP$
surprising/JJ
progress/NN
so/RB
far/RB
holds/VBZ
important/JJ
lessons/NNS
for/IN
companies/NNS
in/IN
trouble/NN
./.
The/DT
big/JJ
one/NN
:/:
A/DT
company/NN
's/POS
culture/NN
ca/MD
n't/RB
be/VB
radically/RB
changed/VBN
unless/IN
top/JJ
management/NN
first/RB
admits/VBZ
that/IN
things/NNS
have/VBP
gone/VBN
badly/RB
awry/RB
and/CC
then/RB
publicly/RB
leads/VBZ
the/DT
charge/NN
./.
Atsushi/NNP
Muramatsu/NNP
,/,
Nissan/NNP
's/POS
executive/NN
vice/NN
president/NN
for/IN
finance/NN
,/,
helped/VBD
set/VB
the/DT
tone/NN
in/IN
December/NNP
1986/CD
,/,
when/WRB
the/DT
company/NN
was/VBD
heading/VBG
toward/IN
the/DT
first/JJ
operating/NN
loss/NN
by/IN
a/DT
Japanese/JJ
auto/NN
maker/NN
since/IN
the/DT
nation/NN
's/POS
postwar/JJ
recovery/NN
./.
``/``
This/DT
is/VBZ
a/DT
time/NN
of/IN
self-criticism/NN
to/TO
discover/VB
what/WP
is/VBZ
wrong/JJ
with/IN
us/PRP
,/,
''/''
he/PRP
said/VBD
./.
Yutaka/NNP
Kume/NNP
,/,
who/WP
took/VBD
the/DT
helm/NN
as/IN
Nissan/NNP
's/POS
president/NN
in/IN
June/NNP
1985/CD
,/,
added/VBD
simply/RB
,/,
``/``
I/PRP
am/VBP
deeply/RB
disappointed/JJ
./.
''/''
No/DT
wonder/NN
./.
Nissan/NNP
,/,
Japan/NNP
's/POS
second-largest/JJ
auto/NN
maker/NN
and/CC
the/DT
world/NN
's/POS
fourth-largest/JJ
,/,
was/VBD
getting/VBG
beat/NN
up/RB
not/RB
only/RB
by/IN
its/PRP$
bigger/JJR
rival/NN
,/,
Toyota/NNP
Motor/NNP
Corp./NNP
,/,
but/CC
also/RB
by/IN
Honda/NNP
Motor/NNP
Co./NNP
,/,
the/DT
most/RBS
successful/JJ
Japanese/JJ
car/NN
company/NN
in/IN
the/DT
U.S./NNP
but/CC
a/DT
relative/JJ
pipsqueak/NN
in/IN
Japan/NNP
./.
Nissan/NNP
's/POS
market/NN
share/NN
in/IN
Japan/NNP
had/VBD
been/VBN
dropping/VBG
year/NN
by/IN
year/NN
since/IN
the/DT
beginning/NN
of/IN
the/DT
decade/NN
./.
Its/PRP$
U.S./NNP
sales/NNS
sagged/VBD
,/,
partly/RB
because/IN
of/IN
price/NN
increases/NNS
due/JJ
to/TO
the/DT
rising/VBG
yen/NNS
./.
Worst/RBS
of/IN
all/DT
,/,
Nissan/NNP
was/VBD
preoccupied/VBN
with/IN
management/NN
infighting/NN
,/,
cronyism/NN
and/CC
corporate/JJ
rigidity/NN
./.
Consider/VB
the/DT
experience/NN
of/IN
Satoko/NNP
Kitada/NNP
,/,
a/DT
30-year-old/JJ
designer/NN
of/IN
vehicle/NN
interiors/NNS
who/WP
joined/VBD
Nissan/NNP
in/IN
1982/CD
./.
At/IN
that/DT
time/NN
,/,
tasks/NNS
were/VBD
assigned/VBN
strictly/RB
on/IN
the/DT
basis/NN
of/IN
seniority/NN
./.
``/``
The/DT
oldest/JJS
designer/NN
got/VBD
to/TO
work/VB
on/IN
the/DT
dashboard/NN
,/,
''/''
she/PRP
recalls/VBZ
./.
``/``
The/DT
next/JJ
level/NN
down/RB
did/VBD
doors/NNS
./.
If/IN
a/DT
new/JJ
person/NN
got/VBD
to/TO
work/VB
on/IN
part/NN
of/IN
the/DT
speedometer/NN
,/,
that/WDT
was/VBD
a/DT
big/JJ
deal/NN
./.
''/''
This/DT
system/NN
produced/VBD
boring/JJ
,/,
boxy/JJ
cars/NNS
that/IN
consumers/NNS
just/RB
were/VBD
n't/RB
buying/VBG
./.
Desperately/RB
hoping/VBG
to/TO
spark/VB
sales/NNS
,/,
Nissan/NNP
transferred/VBD
5,000/CD
middle/JJ
managers/NNS
and/CC
plant/NN
workers/NNS
to/TO
dealerships/NNS
./.
Meanwhile/RB
,/,
President/NNP
Kume/NNP
ordered/VBD
everyone/NN
from/IN
top/JJ
executives/NNS
to/TO
rookie/NN
designers/NNS
to/TO
go/VB
``/``
town/NN
watching/NN
,/,
''/''
to/TO
visit/VB
chic/JJ
parts/NNS
of/IN
Tokyo/NNP
to/TO
try/VB
to/TO
gain/VB
insights/NNS
into/IN
developing/VBG
cars/NNS
for/IN
trend-setters/NNS
./.
Some/DT
town-watching/JJ
excursions/NNS
were/VBD
downright/RB
comic/JJ
./.
One/CD
group/NN
of/IN
middle-aged/JJ
manufacturing/VBG
men/NNS
from/IN
the/DT
company/NN
's/POS
Zama/NNP
plant/NN
outside/IN
Tokyo/NNP
was/VBD
supposed/VBN
to/TO
check/VB
out/RP
a/DT
trendy/JJ
restaurant/NN
in/IN
the/DT
city/NN
./.
But/CC
when/WRB
they/PRP
arrived/VBD
at/IN
the/DT
door/NN
,/,
all/DT
were/VBD
afraid/JJ
to/TO
go/VB
in/RB
,/,
fearing/VBG
that/IN
they/PRP
would/MD
be/VB
out/IN
of/IN
place/NN
./.
Other/JJ
trips/NNS
were/VBD
more/RBR
productive/JJ
./.
Mr./NNP
Kume/NNP
himself/PRP
visited/VBD
Honda/NNP
's/POS
headquarters/NN
in/IN
Tokyo/NNP
's/POS
upscale/JJ
Aoyama/NNP
district/NN
./.
He/PRP
liked/VBD
the/DT
well-lighted/JJ
lobby/NN
display/NN
of/IN
Honda/NNP
's/POS
cars/NNS
and/CC
trucks/NNS
so/RB
much/RB
that/IN
he/PRP
had/VBD
Nissan/NNP
's/POS
gloomy/JJ
lobby/NN
exhibit/NN
refurbished/VBN
./.
Later/RB
,/,
Nissan/NNP
borrowed/VBD
other/JJ
Honda/NNP
practices/NNS
,/,
including/VBG
an/DT
engineering/NN
``/``
idea/NN
contest/NN
''/''
to/TO
promote/VB
inventiveness/NN
./.
One/CD
engineer/NN
developed/VBD
a/DT
``/``
crab/NN
car/NN
''/''
that/WDT
moves/VBZ
sideways/RB
./.
Such/JJ
sudden/JJ
cultural/JJ
shifts/NNS
may/MD
come/VB
across/IN
as/IN
a/DT
bit/RB
forced/JJ
,/,
but/CC
they/PRP
seem/VBP
to/TO
be/VB
genuine/JJ
--/:
so/RB
much/RB
so/IN
,/,
in/IN
fact/NN
,/,
that/IN
some/DT
older/JJR
employees/NNS
have/VBP
resisted/VBN
./.
Nissan/NNP
handled/VBD
the/DT
die-hards/NNS
in/IN
a/DT
typically/RB
Japanese/JJ
fashion/NN
:/:
They/PRP
were/VBD
n't/RB
fired/VBN
but/CC
instead/RB
``/``
were/VBD
neglected/VBN
,/,
''/''
says/VBZ
Kouji/NNP
Hori/NNP
,/,
the/DT
personnel/JJ
manager/NN
at/IN
the/DT
Nissan/NNP
Technical/NNP
Center/NNP
./.
Despite/IN
the/DT
pain/NN
of/IN
adjusting/NN
,/,
the/DT
cultural/JJ
revolution/NN
has/VBZ
begun/VBN
to/TO
yield/VB
exciting/JJ
cars/NNS
./.
A/DT
year/NN
ago/RB
,/,
the/DT
company/NN
completely/RB
revamped/VBD
its/PRP$
near-luxury/JJ
sedan/NN
,/,
the/DT
$/$
17,699/CD
Maxima/NNP
,/,
which/WDT
competes/VBZ
against/IN
a/DT
broad/JJ
range/NN
of/IN
upscale/NN
sedans/NNS
;/:
it/PRP
replaced/VBD
its/PRP$
boxy/JJ
,/,
pug-nosed/JJ
body/NN
with/IN
sleek/JJ
,/,
aerodynamic/JJ
lines/NNS
./.
Since/IN
then/RB
,/,
Nissan/NN
also/RB
has/VBZ
launched/VBN
new/JJ
versions/NNS
of/IN
the/DT
$/$
13,249/CD
240SX/NNP
sporty/JJ
coupe/NN
and/CC
300ZX/NNP
sports/NNS
car/NN
./.
The/DT
restyled/JJ
300ZX/NNP
costs/VBZ
as/RB
much/JJ
as/IN
$/$
33,000/CD
and/CC
is/VBZ
squared/VBN
off/RB
against/IN
the/DT
Porche/NNP
944/CD
,/,
which/WDT
begins/VBZ
at/IN
$/$
41,900/CD
./.
Besides/IN
new/JJ
styling/NN
,/,
the/DT
new/JJ
Nissans/NNPS
have/VBP
more/RBR
powerful/JJ
engines/NNS
and/CC
more/RBR
sophisticated/JJ
suspension/NN
systems/NNS
./.
All/DT
three/CD
new/JJ
models/NNS
are/VBP
outselling/VBG
their/PRP$
predecessors/NNS
by/IN
wide/JJ
margins/NNS
./.
In/IN
its/PRP$
home/NN
market/NN
,/,
Nissan/NNP
has/VBZ
grabbed/VBN
attention/NN
with/IN
limited-production/JJ
minicars/NNS
featuring/VBG
styling/VBG
odd/JJ
enough/RB
to/TO
be/VB
cute/JJ
./.
One/CD
is/VBZ
the/DT
Pao/NNP
,/,
a/DT
tiny/JJ
coupe/NN
with/IN
a/DT
peelback/JJ
canvas/NN
top/NN
and/CC
tilted/JJ
headlights/NNS
that/WDT
give/VBP
it/PRP
a/DT
droopy-eyed/JJ
look/NN
./.
Nissan/NNP
initially/RB
planned/VBD
to/TO
sell/VB
just/RB
10,000/CD
Paos/NNPS
,/,
but/CC
sales/NNS
have/VBP
passed/VBN
50,000/CD
,/,
and/CC
there/EX
's/VBZ
a/DT
one-year/JJ
waiting/NN
list/NN
for/IN
the/DT
car/NN
./.
Then/RB
,/,
there/EX
's/VBZ
the/DT
S-Cargo/NNP
,/,
an/DT
offbeat/JJ
delivery/NN
van/NN
with/IN
a/DT
snail-like/JJ
body/NN
that/WDT
inspired/VBD
its/PRP$
name/NN
./.
Nissan/NNP
helped/VBD
develop/VB
a/DT
Tokyo/NNP
restaurant/NN
with/IN
both/DT
vehicles/NNS
as/IN
its/PRP$
design/NN
theme/NN
./.
The/DT
chairs/NNS
are/VBP
S-Cargo/NNP
seats/NNS
,/,
and/CC
a/DT
gift/NN
shop/NN
sells/VBZ
such/JJ
items/NNS
as/IN
alarm/NN
clocks/NNS
styled/VBN
like/IN
the/DT
Pao/NNP
's/POS
oversized/JJ
speedometer/NN
./.
All/PDT
these/DT
vehicles/NNS
have/VBP
sharply/RB
improved/VBN
Nissan/NNP
's/POS
morale/NN
and/CC
image/NN
--/:
but/CC
have/VBP
n't/RB
done/VBN
much/RB
for/IN
its/PRP$
market/NN
share/NN
./.
Nissan/NNP
had/VBD
29/CD
%/NN
of/IN
the/DT
Japanese/JJ
car/NN
market/NN
in/IN
1980/CD
before/IN
beginning/VBG
a/DT
depressing/JJ
eight-year/JJ
slide/NN
that/WDT
continued/VBD
through/IN
last/JJ
year/NN
./.
Strong/JJ
sales/NNS
so/RB
far/RB
this/DT
year/NN
are/VBP
certain/JJ
to/TO
turn/VB
the/DT
tide/NN
,/,
but/CC
even/RB
the/DT
25/CD
%/NN
market/NN
share/NN
that/IN
Nissan/NNP
expects/VBZ
in/IN
1989/CD
will/MD
leave/VB
it/PRP
far/RB
below/IN
its/PRP$
position/NN
at/IN
the/DT
beginning/NN
of/IN
the/DT
decade/NN
./.
Nissan/NNP
concedes/VBZ
that/IN
it/PRP
wo/MD
n't/RB
recoup/VB
all/DT
its/PRP$
market-share/NN
losses/NNS
in/IN
Japan/NNP
until/IN
at/IN
least/JJS
1995/CD
,/,
and/CC
even/RB
that/DT
timetable/NN
might/MD
prove/VB
optimistic/JJ
./.
``/``
Everyone/NN
else/JJ
is/VBZ
going/VBG
to/TO
catch/VB
up/RB
''/''
with/IN
Nissan/NNP
's/POS
innovative/JJ
designs/NNS
,/,
says/VBZ
A./NN
Rama/NNP
Krishna/NNP
,/,
auto/NN
analyst/NN
at/IN
First/JJ
Boston/NNP
Japan/NNP
Ltd/NNP
./.
Nissan/NNP
's/POS
pace/NN
of/IN
new-model/JJ
hits/NNS
will/MD
slow/VB
,/,
he/PRP
adds/VBZ
,/,
just/RB
as/IN
arch-rival/JJ
Toyota/NNP
unleashes/VBZ
its/PRP$
own/JJ
batch/NN
of/IN
new/JJ
cars/NNS
./.
Likewise/RB
,/,
in/IN
the/DT
U.S./NNP
,/,
Nissan/NNP
has/VBZ
grabbed/VBN
5.2/CD
%/NN
of/IN
the/DT
car/NN
market/NN
so/RB
far/RB
this/DT
year/NN
,/,
up/RB
from/IN
4.5/CD
%/NN
a/DT
year/NN
ago/RB
./.
But/CC
even/RB
that/WDT
brings/VBZ
Nissan/NNP
only/RB
to/TO
the/DT
share/NN
it/PRP
had/VBD
in/IN
1987/CD
,/,
and/CC
leaves/VBZ
the/DT
company/NN
behind/IN
its/PRP$
high/NN
of/IN
5.5/CD
%/NN
in/IN
1980/CD
and/CC
1982/CD
./.
Why/WRB
?/.
So/RB
far/RB
,/,
Nissan/NNP
's/POS
new-model/NN
successes/NNS
are/VBP
mostly/RB
specialized/JJ
vehicles/NNS
with/IN
limited/JJ
sales/NNS
potential/NN
./.
In/IN
compact/NN
and/CC
subcompact/NN
cars/NNS
,/,
the/DT
bread-and-butter/JJ
sales/NNS
generators/NNS
for/IN
Japanese/JJ
auto/NN
makers/NNS
,/,
Nissan/NNP
still/RB
trails/VBZ
Toyota/NNP
and/CC
Honda/NNP
./.
Nissan/NNP
hopes/VBZ
that/IN
that/DT
will/MD
start/VB
to/TO
change/VB
this/DT
fall/NN
,/,
with/IN
its/PRP$
new/JJ
version/NN
of/IN
the/DT
Stanza/NNP
compact/JJ
sedan/NN
./.
The/DT
Stanza/NNP
has/VBZ
been/VBN
a/DT
nonentity/NN
compared/VBN
with/IN
Honda/NNP
's/POS
hugely/RB
successful/JJ
Accord/NNP
and/CC
Toyota/NNP
's/POS
Camry/NNP
./.
But/CC
this/DT
year/NN
,/,
Honda/NNP
has/VBZ
revamped/VBN
the/DT
Accord/NNP
and/CC
made/VBD
it/PRP
a/DT
midsized/JJ
car/NN
./.
Nissan/NNP
instead/RB
has/VBZ
kept/VBN
its/PRP$
new/JJ
Stanza/NNP
a/DT
bit/RB
smaller/JJR
than/IN
that/DT
and/CC
cut/VBN
the/DT
base/JJ
price/NN
6/CD
%/NN
;/:
at/IN
$/$
11,450/CD
,/,
Stanza/NNP
prices/NNS
start/VBP
$/$
749/CD
below/IN
the/DT
predecessor/NN
model/NN
yet/RB
have/VBP
a/DT
more-powerful/JJR
engine/NN
./.
Accord/NNP
prices/NNS
start/VBP
at/IN
$/$
12,345/CD
./.
Nissan/NNP
's/POS
risk/NN
is/VBZ
that/IN
its/PRP$
low-base-price/JJ
strategy/NN
might/MD
get/VB
lost/VBN
amid/IN
the/DT
highly/RB
publicized/JJ
rebates/NNS
being/VBG
offered/VBN
by/IN
Detroit/NNP
's/POS
Big/JJ
Three/CD
./.
But/CC
``/``
on/IN
a/DT
new/JJ
car/NN
,/,
a/DT
rebate/NN
does/VBZ
n't/RB
work/VB
well/RB
''/''
because/IN
it/PRP
cheapens/VBZ
the/DT
vehicle/NN
's/POS
image/NN
,/,
contends/VBZ
Thomas/NNP
D./NNP
Mignanelli/NNP
,/,
executive/NN
vice/NN
president/NN
of/IN
Nissan/NNP
's/POS
U.S./NNP
sales/NNS
arm/NN
./.
Even/RB
if/IN
the/DT
new/JJ
Stanza/NNP
succeeds/VBZ
,/,
Nissan/NNP
will/MD
remain/VB
behind/RB
in/IN
the/DT
subcompact/NN
segment/NN
,/,
where/WRB
its/PRP$
Sentra/NNP
does/VBZ
n't/RB
measure/VB
up/RB
to/TO
the/DT
Honda/NNP
Civic/NNP
and/CC
Toyota/NNP
Corolla/NNP
./.
Nissan/NNP
will/MD
introduce/VB
a/DT
completely/RB
revamped/VBN
Sentra/NNP
next/JJ
fall/NN
./.
At/IN
the/DT
opposite/JJ
end/NN
of/IN
the/DT
market/NN
,/,
Nissan/NNP
launches/VBZ
its/PRP$
luxury/NN
Infiniti/NNP
division/NN
on/IN
Nov./NNP
8/CD
--/:
three/CD
years/NNS
after/IN
Honda/NN
pioneered/VBD
Japanese/JJ
luxury/NN
cars/NNS
and/CC
two/CD
months/NNS
after/IN
Toyota/NNP
's/POS
Lexus/NNP
went/VBD
on/IN
sale/NN
./.
Nissan/NNP
started/VBD
advertising/VBG
Infiniti/NNP
fully/RB
eight/CD
months/NNS
before/IN
the/DT
cars/NNS
hit/VBD
American/JJ
showrooms/NNS
./.
The/DT
ads/NNS
featured/VBD
fences/NNS
,/,
rocks/NNS
and/CC
pussy-willow/NN
buds/NNS
--/:
almost/RB
anything/NN
but/CC
the/DT
cars/NNS
themselves/PRP
./.
The/DT
ads/NNS
have/VBP
generated/VBN
some/DT
laughs/NNS
but/CC
also/RB
plenty/NN
of/IN
attention/NN
because/IN
they/PRP
are/VBP
so/RB
unlike/IN
any/DT
other/JJ
U.S./NNP
auto/NN
advertising/NN
./.
On/IN
the/DT
other/JJ
hand/NN
,/,
Nissan/NNP
's/POS
sales/NNS
goals/NNS
for/IN
Infiniti/NNP
are/VBP
modest/JJ
compared/VBN
with/IN
Toyota/NNP
's/POS
targets/NNS
for/IN
Lexus/NNP
./.
Nissan/NNP
will/MD
build/VB
only/RB
about/IN
3,500/CD
of/IN
the/DT
$/$
38,000/CD
Infiniti/NNP
Q45/NNP
sedans/NNS
each/DT
month/NN
,/,
sending/VBG
about/IN
2,000/CD
of/IN
them/PRP
to/TO
the/DT
U.S./NNP
and/CC
keeping/VBG
the/DT
rest/NN
for/IN
sale/NN
in/IN
Japan/NNP
./.
Toyota/NNP
wants/VBZ
to/TO
sell/VB
about/IN
49,000/CD
Lexus/NNP
LS400/NN
sedans/NNS
next/JJ
year/NN
in/IN
the/DT
U.S./NNP
alone/RB
./.
``/``
When/WRB
I/PRP
saw/VBD
the/DT
Lexus/NNP
sales/NNS
projections/NNS
,/,
I/PRP
got/VBD
worried/JJ
,/,
''/''
confesses/VBZ
Takashi/NNP
Oka/NNP
,/,
who/WP
led/VBD
the/DT
Infiniti/NNP
development/NN
team/NN
./.
But/CC
on/IN
reflection/NN
,/,
Mr./NNP
Oka/NNP
says/VBZ
,/,
he/PRP
concluded/VBD
that/IN
Nissan/NNP
is/VBZ
being/VBG
prudent/JJ
in/IN
following/VBG
its/PRP$
slow-startup/JJ
strategy/NN
instead/RB
of/IN
simply/RB
copying/VBG
Lexus/NNP
./.
``/``
Infiniti/NNP
is/VBZ
Nissan/NNP
's/POS
big/JJ
business/NN
move/NN
for/IN
the/DT
21st/JJ
century/NN
,/,
and/CC
we/PRP
're/VBP
in/IN
no/DT
hurry/NN
to/TO
generate/VB
large/JJ
profits/NNS
right/RB
away/RB
,/,
''/''
Mr./NNP
Oka/NNP
says/VBZ
./.
Despite/IN
plans/NNS
to/TO
add/VB
two/CD
new/JJ
Infiniti/NNP
models/NNS
next/IN
year/NN
,/,
bringing/VBG
the/DT
total/NN
to/TO
four/CD
,/,
Infiniti/NNP
wo/MD
n't/RB
show/VB
profits/NNS
for/IN
at/IN
least/JJS
five/CD
years/NNS
,/,
he/PRP
adds/VBZ
./.
These/DT
days/NNS
Nissan/NNP
can/MD
afford/VB
that/DT
strategy/NN
,/,
even/RB
though/IN
profits/NNS
are/VBP
n't/RB
exactly/RB
robust/JJ
./.
Nissan/NNP
had/VBD
record/NN
net/JJ
income/NN
of/IN
114.63/CD
billion/CD
yen/NNS
$/$
868/CD
million/CD
the/DT
fiscal/JJ
year/NN
ended/VBN
last/JJ
March/NNP
31/CD
,/,
a/DT
remarkable/JJ
recovery/NN
from/IN
the/DT
20.39/CD
billion/CD
yen/NNS
of/IN
two/CD
years/NNS
earlier/RB
,/,
when/WRB
the/DT
company/NN
lost/VBD
money/NN
on/IN
operations/NNS
./.
Nissan/NNP
has/VBZ
increased/VBN
earnings/NNS
more/RBR
than/IN
market/NN
share/NN
by/IN
cutting/VBG
costs/NNS
and/CC
by/IN
taking/VBG
advantage/NN
of/IN
a/DT
general/JJ
surge/NN
in/IN
Japanese/JJ
car/NN
sales/NNS
./.
But/CC
Nissan/NNP
expects/VBZ
to/TO
earn/VB
only/RB
120/CD
billion/CD
yen/NNS
in/IN
the/DT
current/JJ
fiscal/JJ
year/NN
,/,
a/DT
modest/JJ
increase/NN
of/IN
4.7/CD
%/NN
./.
The/DT
big/JJ
reason/NN
:/:
For/IN
all/DT
its/PRP$
cost-cutting/NN
,/,
Nissan/NNP
remains/VBZ
less/RBR
efficient/JJ
than/IN
Toyota/NNP
./.
In/IN
its/PRP$
last/JJ
fiscal/JJ
year/NN
,/,
Nissan/NNP
's/POS
profit/NN
represented/VBD
just/RB
2.3/CD
%/NN
of/IN
sales/NNS
,/,
compared/VBN
with/IN
4.3/CD
%/NN
at/IN
Toyota/NNP
./.
To/TO
help/VB
close/RB
the/DT
gap/NN
,/,
Nissan/NNP
recently/RB
established/VBD
a/DT
top-level/JJ
cost-cutting/JJ
committee/NN
./.
Nissan/NNP
is/VBZ
the/DT
world/NN
's/POS
only/JJ
auto/NN
maker/NN
currently/RB
building/VBG
vehicles/NNS
in/IN
all/DT
three/CD
of/IN
the/DT
world/NN
's/POS
key/JJ
economic/JJ
arenas/NNS
--/:
the/DT
U.S./NNP
,/,
Japan/NNP
and/CC
Europe/NNP
./.
That/DT
gives/VBZ
it/PRP
an/DT
enviable/JJ
strategic/JJ
advantage/NN
,/,
at/IN
least/JJS
until/IN
its/PRP$
rivals/NNS
catch/VB
up/RB
,/,
but/CC
also/RB
plenty/NN
of/IN
managerial/JJ
headaches/NNS
./.
For/IN
example/NN
,/,
Nissan/NNP
's/POS
U.S./NNP
operations/NNS
include/VBP
10/CD
separate/JJ
subsidiaries/NNS
--/:
for/IN
manufacturing/NN
,/,
sales/NNS
,/,
design/NN
,/,
research/NN
,/,
etc./FW
--/:
that/WDT
report/VBP
separately/RB
back/RB
to/TO
Japan/NNP
./.
And/CC
in/IN
July/NNP
,/,
Nissan/NNP
's/POS
Tennessee/NNP
manufacturing/NN
plant/NN
beat/VBD
back/RB
a/DT
United/NNP
Auto/NNP
Workers/NNPS
organizing/VBG
effort/NN
with/IN
aggressive/JJ
tactics/NNS
that/WDT
have/VBP
left/VBN
some/DT
workers/NNS
bitter/JJ
./.
``/``
We/PRP
are/VBP
in/IN
a/DT
transitional/JJ
phase/NN
from/IN
being/VBG
a/DT
Japanese/JJ
company/NN
to/TO
becoming/VBG
an/DT
international/JJ
company/NN
based/VBN
in/IN
Japan/NNP
,/,
''/''
says/VBZ
Mr./NNP
Muramatsu/NNP
,/,
the/DT
executive/NN
vice/NN
president/NN
./.
He/PRP
promises/VBZ
that/DT
Nissan/NNP
will/MD
soon/RB
establish/VB
a/DT
holding/VBG
company/NN
overseeing/VBG
all/DT
U.S./NNP
operations/NNS
,/,
just/RB
as/IN
it/PRP
's/VBZ
doing/VBG
in/IN
Europe/NNP
./.
Perhaps/RB
the/DT
biggest/JJS
challenge/NN
,/,
however/RB
,/,
will/MD
be/VB
to/TO
prevent/VB
a/DT
return/NN
to/TO
its/PRP$
former/JJ
corporate/JJ
rigidity/NN
as/IN
its/PRP$
recovery/NN
continues/VBZ
./.
Already/RB
,/,
personnel/NNS
officials/NNS
are/VBP
talking/VBG
about/IN
the/DT
need/NN
for/IN
a/DT
``/``
Phase/NN
Two/CD
''/''
cultural-reform/NN
effort/NN
of/IN
some/DT
sort/NN
./.
``/``
We/PRP
are/VBP
still/RB
only/RB
half/JJ
way/NN
through/IN
the/DT
turnaround/NN
of/IN
this/DT
company/NN
,/,
and/CC
there/EX
are/VBP
many/RB
more/JJR
things/NNS
to/TO
do/VB
,/,
''/''
President/NNP
Kume/NNP
says/VBZ
./.
He/PRP
adds/VBZ
,/,
however/RB
,/,
that/IN
``/``
the/DT
momentum/NN
we/PRP
have/VBP
generated/VBN
is/VBZ
unstoppable/JJ
./.
''/''
As/IN
expected/VBN
,/,
Warner/NNP
Bros/NNPS
./.
Records/NNPS
said/VBD
it/PRP
agreed/VBD
to/TO
form/VB
a/DT
recorded-music/JJ
and/CC
music-publishing/JJ
joint/JJ
venture/NN
with/IN
former/JJ
MCA/NNP
Records/NNPS
Chairman/NNP
Irving/NNP
Azoff/NNP
./.
Warner/NNP
said/VBD
it/PRP
will/MD
provide/VB
financing/NN
for/IN
the/DT
venture/NN
,/,
but/CC
did/VBD
n't/RB
disclose/VB
terms/NNS
./.
Mr./NNP
Azoff/NNP
has/VBZ
n't/RB
named/VBD
the/DT
company/NN
yet/RB
,/,
but/CC
any/DT
records/NNS
it/PRP
produces/VBZ
will/MD
be/VB
distributed/VBN
by/IN
Warner/NNP
./.
Warner/NNP
is/VBZ
part/NN
of/IN
Warner/NNP
Communications/NNPS
Inc./NNP
,/,
which/WDT
is/VBZ
in/IN
the/DT
process/NN
of/IN
being/VBG
acquired/VBN
by/IN
Time/NNP
Warner/NNP
Inc/NNP
./.
Mr./NNP
Azoff/NNP
resigned/VBD
as/IN
head/NN
of/IN
MCA/NNP
Records/NNPS
,/,
a/DT
unit/NN
of/IN
MCA/NNP
Inc./NNP
,/,
in/IN
September/NNP
,/,
and/CC
had/VBD
been/VBN
discussing/VBG
a/DT
joint/JJ
venture/NN
with/IN
both/DT
Warner/NNP
and/CC
MCA/NNP
./.
In/IN
a/DT
statement/NN
yesterday/NN
,/,
Mr./NNP
Azoff/NNP
said/VBD
he/PRP
chose/VBD
Warner/NNP
,/,
the/DT
largest/JJS
record/NN
company/NN
,/,
because/IN
``/``
their/PRP$
standing/NN
in/IN
the/DT
entertainment/NN
industry/NN
is/VBZ
second/JJ
to/TO
none/NN
./.
''/''
President/NNP
Bush/NNP
and/CC
Soviet/JJ
leader/NN
Mikhail/NNP
Gorbachev/NNP
will/MD
hold/VB
an/DT
informal/JJ
meeting/NN
in/IN
early/JJ
December/NNP
,/,
a/DT
move/NN
that/WDT
should/MD
give/VB
both/DT
leaders/NNS
a/DT
political/JJ
boost/NN
at/IN
home/NN
./.
The/DT
White/NNP
House/NNP
is/VBZ
purposely/RB
not/RB
calling/VBG
the/DT
meeting/NN
a/DT
summit/NN
so/IN
that/IN
there/EX
wo/MD
n't/RB
be/VB
any/DT
expectation/NN
of/IN
detailed/JJ
negotiations/NNS
or/CC
agreements/NNS
./.
Rather/RB
,/,
senior/JJ
administration/NN
officials/NNS
said/VBD
that/IN
the/DT
unexpected/JJ
meeting/NN
was/VBD
scheduled/VBN
at/IN
Mr./NNP
Bush/NNP
's/POS
request/NN
because/IN
of/IN
his/PRP$
preference/NN
for/IN
conducting/VBG
diplomacy/NN
through/IN
highly/RB
personal/JJ
and/CC
informal/JJ
meetings/NNS
with/IN
other/JJ
leaders/NNS
./.
The/DT
two/CD
leaders/NNS
will/MD
meet/VB
on/IN
Dec./NNP
2/CD
and/CC
3/CD
,/,
alternating/VBG
the/DT
two/CD
days/NNS
of/IN
meetings/NNS
between/IN
a/DT
U.S./NNP
and/CC
a/DT
Soviet/JJ
naval/JJ
vessel/NN
in/IN
the/DT
Mediterranean/NNP
Sea/NNP
./.
The/DT
unusual/JJ
seaborne/JJ
meeting/NN
wo/MD
n't/RB
disrupt/VB
plans/NNS
for/IN
a/DT
formal/JJ
summit/NN
meeting/VBG
next/JJ
spring/NN
or/CC
summer/NN
,/,
at/IN
which/WDT
an/DT
arms-control/NN
treaty/NN
is/VBZ
likely/JJ
to/TO
be/VB
completed/VBN
./.
In/IN
announcing/VBG
the/DT
meeting/NN
yesterday/NN
,/,
Mr./NNP
Bush/NNP
told/VBD
reporters/NNS
at/IN
the/DT
White/NNP
House/NNP
that/IN
neither/CC
he/PRP
nor/CC
Mr./NNP
Gorbachev/NNP
expects/VBZ
any/DT
``/``
substantial/JJ
decisions/NNS
or/CC
agreements/NNS
./.
''/''
Instead/RB
,/,
he/PRP
said/VBD
that/IN
the/DT
purpose/NN
is/VBZ
simply/RB
for/IN
the/DT
two/CD
to/TO
get/VB
``/``
better/RBR
acquainted/VBN
''/''
and/CC
discuss/VB
a/DT
wide/JJ
range/NN
of/IN
issues/NNS
without/IN
a/DT
formal/JJ
agenda/NN
./.
Despite/IN
the/DT
informal/JJ
nature/NN
of/IN
the/DT
session/NN
and/CC
the/DT
calculated/JJ
effort/NN
to/TO
hold/VB
down/RP
expectations/NNS
,/,
the/DT
meeting/NN
could/MD
pay/VB
significant/JJ
political/JJ
dividends/NNS
for/IN
both/DT
leaders/NNS
./.
Mr./NNP
Gorbachev/NNP
badly/RB
needs/VBZ
a/DT
diversion/NN
from/IN
the/DT
serious/JJ
economic/JJ
problems/NNS
and/CC
ethnic/JJ
unrest/NN
he/PRP
faces/VBZ
at/IN
home/NN
./.
American/JJ
officials/NNS
have/VBP
said/VBN
that/IN
a/DT
meeting/NN
with/IN
the/DT
leader/NN
of/IN
the/DT
U.S./NNP
could/MD
help/VB
bolster/VB
his/PRP$
stature/NN
among/IN
Soviet/JJ
politicians/NNS
and/CC
academics/NNS
,/,
whose/WP$
support/NN
he/PRP
needs/VBZ
./.
For/IN
his/PRP$
part/NN
,/,
Mr./NNP
Bush/NNP
has/VBZ
been/VBN
criticized/VBN
regularly/RB
at/IN
home/NN
for/IN
moving/VBG
too/RB
slowly/RB
and/CC
cautiously/RB
in/IN
reacting/VBG
to/TO
Mr./NNP
Gorbachev/NNP
's/POS
reforms/NNS
and/CC
the/DT
historic/JJ
moves/NNS
away/RB
from/IN
communism/NN
in/IN
Eastern/NNP
Europe/NNP
./.
A/DT
face-to-face/JJ
meeting/NN
with/IN
Mr./NNP
Gorbachev/NNP
should/MD
damp/VB
such/JJ
criticism/NN
,/,
though/IN
it/PRP
will/MD
hardly/RB
eliminate/VB
it/PRP
./.
Senate/NNP
Majority/NNP
Leader/NNP
George/NNP
Mitchell/NNP
D./NNP
,/,
Maine/NNP
who/WP
has/VBZ
been/VBN
the/DT
most/RBS
prominent/JJ
Democratic/JJ
critic/NN
of/IN
Mr./NNP
Bush/NNP
's/POS
handling/NN
of/IN
the/DT
Soviet/JJ
relationship/NN
,/,
praised/VBD
the/DT
president/NN
for/IN
arranging/VBG
the/DT
meeting/NN
./.
But/CC
he/PRP
added/VBD
:/:
``/``
The/DT
mere/JJ
fact/NN
of/IN
a/DT
meeting/NN
does/VBZ
n't/RB
deal/VB
with/IN
the/DT
substance/NN
of/IN
policy/NN
./.
''/''
Mr./NNP
Bush/NNP
said/VBD
that/IN
the/DT
December/NNP
meeting/NN
,/,
which/WDT
was/VBD
announced/VBN
simultaneously/RB
in/IN
Moscow/NNP
,/,
will/MD
be/VB
held/VBN
in/IN
the/DT
unusual/JJ
setting/NN
of/IN
ships/NNS
at/IN
sea/NN
to/TO
hold/VB
down/RP
the/DT
``/``
fanfare/NN
''/''
and/CC
force/VB
the/DT
two/CD
sides/NNS
to/TO
limit/VB
participation/NN
to/TO
just/RB
small/JJ
groups/NNS
of/IN
advisers/NNS
./.
``/``
By/IN
doing/VBG
it/PRP
in/IN
this/DT
manner/NN
we/PRP
can/MD
have/VB
,/,
I/PRP
would/MD
say/VB
,/,
more/JJR
time/NN
without/IN
the/DT
press/NN
of/IN
social/JJ
activities/NNS
or/CC
mandatory/JJ
joint/JJ
appearances/NNS
,/,
things/NNS
of/IN
that/DT
nature/NN
for/IN
public/JJ
consumption/NN
,/,
''/''
Mr./NNP
Bush/NNP
said/VBD
./.
Soviet/NNP
Foreign/NNP
Minister/NNP
Eduard/NNP
Shevardnadze/NNP
,/,
at/IN
a/DT
news/NN
conference/NN
in/IN
Moscow/NNP
,/,
said/VBD
,/,
``/``
As/IN
the/DT
two/CD
sides/NNS
plan/VBP
to/TO
hold/VB
a/DT
full-scale/JJ
summit/NN
in/IN
late/JJ
spring-early/JJ
summer/NN
next/IN
year/NN
,/,
they/PRP
found/VBD
it/PRP
useful/JJ
,/,
I/PRP
would/MD
say/VB
even/RB
necessary/JJ
,/,
to/TO
hold/VB
an/DT
interim/JJ
informal/JJ
meeting/NN
./.
''/''
Although/IN
no/DT
specific/JJ
agreements/NNS
are/VBP
expected/VBN
,/,
Mr./NNP
Shevardnadze/NNP
said/VBD
``/``
that/WDT
does/VBZ
n't/RB
mean/VB
they/PRP
will/MD
be/VB
without/IN
an/DT
agenda/NN
./.
''/''
If/IN
the/DT
two/CD
leaders/NNS
cover/VBP
the/DT
subjects/NNS
that/WDT
have/VBP
been/VBN
featured/VBN
in/IN
lower/JJR
level/NN
U.S.-Soviet/JJ
meetings/NNS
,/,
their/PRP$
talks/NNS
would/MD
include/VB
human/JJ
rights/NNS
,/,
Soviet/JJ
reforms/NNS
,/,
regional/JJ
disputes/NNS
,/,
relations/NNS
with/IN
allies/NNS
,/,
economic/JJ
cooperation/NN
,/,
arms/NNS
control/NN
,/,
and/CC
joint/JJ
efforts/NNS
to/TO
fight/VB
narcotics/NNS
,/,
terrorism/NN
and/CC
pollution/NN
./.
The/DT
president/NN
specifically/RB
mentioned/VBD
U.S./NNP
economic/JJ
advice/NN
to/TO
Moscow/NNP
as/IN
a/DT
possible/JJ
topic/NN
./.
Mr./NNP
Gorbachev/NNP
has/VBZ
for/IN
months/NNS
been/VBN
publicly/RB
urging/VBG
the/DT
U.S./NNP
to/TO
drop/VB
its/PRP$
restrictions/NNS
on/IN
Soviet/JJ
trade/NN
./.
He/PRP
recently/RB
told/VBD
a/DT
small/JJ
group/NN
of/IN
American/JJ
businessmen/NNS
in/IN
Moscow/NNP
that/IN
he/PRP
hoped/VBD
to/TO
sign/VB
a/DT
general/JJ
trade/NN
agreement/NN
with/IN
the/DT
U.S./NNP
,/,
possibly/RB
at/IN
the/DT
1990/CD
summit/NN
./.
The/DT
Soviets/NNPS
hope/VBP
a/DT
trade/NN
agreement/NN
would/MD
give/VB
them/PRP
Most-Favored/JJS
Nation/NN
status/NN
,/,
which/WDT
would/MD
lower/VB
the/DT
tariffs/NNS
on/IN
Soviet/JJ
exports/NNS
to/TO
the/DT
U.S/NNP
./.
In/IN
an/DT
unusually/RB
candid/JJ
article/NN
about/IN
the/DT
latest/JJS
economic/JJ
woe/NN
--/:
unemployment/NN
--/:
Pravda/NNP
yesterday/NN
reported/VBD
that/IN
three/CD
million/CD
Soviets/NNPS
have/VBP
lost/VBN
their/PRP$
jobs/NNS
as/IN
a/DT
result/NN
of/IN
perestroika/FW
and/CC
the/DT
number/NN
could/MD
grow/VB
to/TO
16/CD
million/CD
by/IN
the/DT
year/NN
2005/CD
./.
Economists/NNS
in/IN
Moscow/NNP
are/VBP
now/RB
proposing/VBG
that/IN
the/DT
state/NN
start/VB
a/DT
system/NN
of/IN
unemployment/NN
benefits/NNS
./.
But/CC
one/CD
Bush/NNP
administration/NN
official/NN
knowledgeable/JJ
about/IN
the/DT
summit/NN
plan/NN
cautioned/VBD
against/IN
assuming/VBG
that/IN
there/EX
will/MD
be/VB
bold/JJ
new/JJ
initiatives/NNS
on/IN
the/DT
Soviet/JJ
economy/NN
or/CC
other/JJ
issues/NNS
./.
``/``
Do/VBP
n't/RB
take/VB
this/DT
as/IN
some/DT
big/JJ
opening/NN
for/IN
major/JJ
movement/NN
on/IN
economic/JJ
cooperation/NN
,/,
or/CC
arms/NNS
control/NN
,/,
or/CC
the/DT
environment/NN
,/,
''/''
he/PRP
said/VBD
./.
``/``
Those/DT
things/NNS
will/MD
all/DT
come/VB
up/RB
,/,
but/CC
in/IN
a/DT
fairly/RB
informal/JJ
way/NN
./.
''/''
Instead/RB
,/,
this/DT
official/NN
said/VBD
,/,
``/``
This/DT
is/VBZ
vintage/JJ
George/NNP
Bush/NNP
./.
This/DT
was/VBD
George/NNP
Bush/NNP
's/POS
own/JJ
idea/NN
./.
It/PRP
's/POS
George/NNP
Bush/NNP
wanting/VBG
to/TO
meet/VB
a/DT
foreign/JJ
leader/NN
and/CC
talk/VB
to/TO
him/PRP
directly/RB
./.
''/''
Aside/RB
from/IN
the/DT
Soviet/JJ
economic/JJ
plight/NN
and/CC
talks/NNS
on/IN
cutting/VBG
strategic/JJ
and/CC
chemical/JJ
arms/NNS
,/,
one/CD
other/JJ
issue/NN
the/DT
Soviets/NNPS
are/VBP
likely/JJ
to/TO
want/VB
to/TO
raise/VB
is/VBZ
naval/JJ
force/NN
reductions/NNS
./.
Western/JJ
analysts/NNS
say/VBP
that/IN
,/,
given/VBN
the/DT
meeting/NN
's/POS
setting/NN
at/IN
sea/NN
,/,
Gorbachev/NNP
is/VBZ
unlikely/JJ
to/TO
pass/VB
up/RP
the/DT
opportunity/NN
to/TO
press/VB
once/RB
again/RB
for/IN
negotiated/VBN
cuts/NNS
in/IN
the/DT
navies/NNS
of/IN
both/DT
the/DT
North/NNP
Atlantic/NNP
Treaty/NNP
Organization/NNP
and/CC
the/DT
Warsaw/NNP
Pact/NNP
./.
That/DT
theme/NN
has/VBZ
been/VBN
a/DT
recurring/VBG
one/NN
for/IN
Soviet/JJ
military/JJ
officials/NNS
for/IN
much/JJ
of/IN
this/DT
year/NN
./.
They/PRP
argue/VBP
that/IN
as/IN
the/DT
Kremlin/NNP
follows/VBZ
through/RB
on/IN
announced/JJ
plans/NNS
to/TO
cut/VB
land/NN
forces/NNS
--/:
the/DT
Soviets/NNPS
'/POS
area/NN
of/IN
greatest/JJS
strength/NN
--/:
the/DT
U.S./NNP
should/MD
show/VB
more/JJR
willingness/NN
to/TO
cut/VB
sea/NN
forces/NNS
--/:
Washington/NNP
's/POS
area/NN
of/IN
greatest/JJS
superiority/NN
./.
One/CD
of/IN
the/DT
reasons/NNS
Bush/NNP
administration/NN
aides/NNS
are/VBP
anxious/JJ
to/TO
insist/VB
that/IN
the/DT
coming/VBG
meeting/NN
will/MD
be/VB
informal/JJ
is/VBZ
to/TO
avoid/VB
comparisons/NNS
with/IN
the/DT
last/JJ
such/JJ
loosely/RB
structured/JJ
superpower/NN
gathering/NN
,/,
former/JJ
President/NNP
Reagan/NNP
's/POS
1986/CD
meeting/NN
with/IN
Mr./NNP
Gorbachev/NNP
in/IN
Reykjavik/NNP
,/,
Iceland/NNP
./.
That/DT
meeting/NN
sent/VBD
shivers/NNS
through/IN
the/DT
Western/JJ
alliance/NN
because/IN
Mr./NNP
Reagan/NNP
was/VBD
pulled/VBN
into/IN
discussing/VBG
the/DT
possible/JJ
elimination/NN
of/IN
nuclear/JJ
weapons/NNS
without/IN
consulting/VBG
American/JJ
allies/NNS
./.
Mr./NNP
Bush/NNP
said/VBD
that/IN
he/PRP
initiated/VBD
talks/NNS
with/IN
the/DT
Soviets/NNPS
on/IN
the/DT
informal/JJ
meeting/NN
by/IN
sending/VBG
a/DT
proposal/NN
to/TO
Mr./NNP
Gorbachev/NNP
last/JJ
July/NNP
,/,
which/WDT
the/DT
Soviet/JJ
leader/NN
readily/RB
accepted/VBD
./.
But/CC
word/NN
of/IN
the/DT
possible/JJ
session/NN
was/VBD
closely/RB
held/VBN
by/IN
the/DT
president/NN
and/CC
a/DT
handful/NN
of/IN
top/JJ
aides/NNS
,/,
and/CC
word/NN
of/IN
it/PRP
did/VBD
n't/RB
reach/VB
many/JJ
second-level/JJ
officials/NNS
until/IN
the/DT
past/JJ
few/JJ
days/NNS
./.
Indeed/RB
,/,
many/JJ
senior/JJ
officials/NNS
had/VBD
been/VBN
insisting/VBG
for/IN
weeks/NNS
that/IN
Mr./NNP
Bush/NNP
was/VBD
n't/RB
interested/JJ
in/IN
such/JJ
an/DT
informal/JJ
get-together/NN
./.
Though/IN
President/NNP
Bush/NNP
's/POS
political/JJ
critics/NNS
at/IN
home/NN
have/VBP
been/VBN
urging/VBG
him/PRP
to/TO
open/VB
a/DT
more/RBR
direct/JJ
dialogue/NN
with/IN
Mr./NNP
Gorbachev/NNP
,/,
it/PRP
actually/RB
was/VBD
the/DT
arguments/NNS
of/IN
leaders/NNS
within/IN
the/DT
Soviet/JJ
bloc/NN
itself/PRP
that/WDT
led/VBD
the/DT
president/NN
to/TO
seek/VB
the/DT
December/NNP
meeting/NN
./.
Mr./NNP
Bush/NNP
decided/VBD
he/PRP
wanted/VBD
the/DT
meeting/NN
after/IN
talking/VBG
in/IN
Europe/NNP
in/IN
July/NNP
with/IN
the/DT
leaders/NNS
of/IN
Poland/NNP
and/CC
Hungary/NNP
,/,
who/WP
urged/VBD
him/PRP
to/TO
support/VB
Mr./NNP
Gorbachev/NNP
's/POS
efforts/NNS
to/TO
transform/VB
the/DT
Soviet/JJ
system/NN
and/CC
to/TO
urge/VB
him/PRP
to/TO
loosen/VB
his/PRP$
grip/NN
on/IN
Eastern/NNP
Europe/NNP
,/,
a/DT
senior/JJ
aide/NN
said/VBD
./.
While/IN
flying/VBG
home/RB
from/IN
those/DT
discussions/NNS
,/,
Mr./NNP
Bush/NNP
drafted/VBD
a/DT
letter/NN
to/TO
Mr./NNP
Gorbachev/NNP
suggesting/VBG
an/DT
informal/JJ
get-together/NN
to/TO
precede/VB
their/PRP$
formal/JJ
summit/NN
next/IN
year/NN
./.
Peter/NNP
Gumbel/NNP
in/IN
Moscow/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Banca/NNP
Nazionale/NNP
del/FW
Lavoro/NNP
said/VBD
its/PRP$
potential/JJ
losses/NNS
from/IN
lending/VBG
to/TO
Iraq/NNP
could/MD
reach/VB
1.175/CD
trillion/CD
lire/NNS
$/$
872/CD
million/CD
the/DT
bank/NN
's/POS
first/JJ
quantification/NN
of/IN
potential/JJ
costs/NNS
of/IN
unauthorized/JJ
lending/NN
by/IN
its/PRP$
Atlanta/NNP
branch/NN
./.
BNL/NNP
previously/RB
reported/VBD
that/DT
its/PRP$
Georgia/NNP
branch/NN
had/VBD
taken/VBN
on/RP
loan/NN
commitments/NNS
topping/VBG
$/$
3/CD
billion/CD
without/IN
the/DT
Rome-based/JJ
management/NN
's/POS
approval/NN
./.
State-owned/JJ
BNL/NNP
,/,
Italy/NNP
's/POS
largest/JJS
bank/NN
,/,
has/VBZ
filed/VBN
charges/NNS
against/IN
the/DT
branch/NN
's/POS
former/JJ
manager/NN
,/,
Christopher/NNP
Drogoul/NNP
,/,
and/CC
a/DT
former/JJ
branch/NN
vice/NN
president/NN
,/,
alleging/VBG
fraud/NN
and/CC
breach/NN
of/IN
their/PRP$
fiduciary/JJ
duties/NNS
./.
BNL/NNP
also/RB
said/VBD
that/DT
its/PRP$
board/NN
had/VBD
approved/VBN
``/``
after/IN
an/DT
in-depth/JJ
discussion/NN
,/,
''/''
a/DT
letter/NN
to/TO
the/DT
Bank/NNP
of/IN
Italy/NNP
outlining/VBG
measures/NNS
the/DT
state-owned/JJ
bank/NN
has/VBZ
taken/VBN
or/CC
plans/VBZ
to/TO
take/VB
to/TO
improve/VB
controls/NNS
on/IN
its/PRP$
foreign/JJ
branches/NNS
./.
The/DT
central/JJ
bank/NN
had/VBD
ordered/VBN
BNL/NNP
to/TO
come/VB
up/RB
with/IN
a/DT
suitable/JJ
program/NN
by/IN
yesterday/NN
./.
Bank/NNP
of/IN
Italy/NNP
has/VBZ
also/RB
ordered/VBN
BNL/NNP
to/TO
shore/VB
up/RP
its/PRP$
capital/NN
base/NN
to/TO
account/VB
for/IN
potential/JJ
foreign/JJ
loan/NN
losses/NNS
,/,
and/CC
the/DT
Rome/NNP
bank/NN
has/VBZ
outlined/VBN
a/DT
3/CD
trillion/CD
lire/NNS
capital-raising/JJ
operation/NN
./.
BNL/NNP
was/VBD
unable/JJ
to/TO
elaborate/VB
on/IN
what/WDT
measures/NNS
were/VBD
planned/VBN
by/IN
the/DT
bank/NN
to/TO
improve/VB
controls/NNS
on/IN
its/PRP$
branches/NNS
abroad/RB
./.
Hardly/RB
a/DT
day/NN
passes/VBZ
without/IN
news/NN
photos/NNS
of/IN
the/DT
police/NN
dragging/VBG
limp/JJ
protesters/NNS
from/IN
some/DT
building/NN
or/CC
thoroughfare/NN
in/IN
one/CD
of/IN
our/PRP$
cities/NNS
./.
Of/IN
recent/JJ
note/NN
are/VBP
the/DT
activities/NNS
of/IN
the/DT
pro-/JJ
and/CC
anti-abortionists/NNS
,/,
anti-nuclear/JJ
activists/NNS
,/,
animal/NN
rights/NNS
protesters/NNS
,/,
college/NN
students/NNS
concerned/JJ
about/IN
racism/NN
,/,
anti-apartheid/JJ
groups/NNS
,/,
various/JJ
self-styled/JJ
``/``
environmentalists/NNS
''/''
and/CC
those/DT
dissatisfied/JJ
with/IN
the/DT
pace/NN
of/IN
the/DT
war/NN
against/IN
AIDS/NNP
./.
Maybe/RB
he/PRP
did/VBD
n't/RB
start/VB
it/PRP
,/,
but/CC
Mohandas/NNP
Gandhi/NNP
certainly/RB
provided/VBD
a/DT
recognizable/JJ
beginning/NN
to/TO
non-violent/JJ
civil/JJ
disobedience/NN
as/IN
we/PRP
know/VBP
it/PRP
today/NN
./.
The/DT
Mahatma/NNP
,/,
or/CC
``/``
great/RB
souled/JJ
one/NN
,/,
''/''
instigated/VBD
several/JJ
campaigns/NNS
of/IN
passive/JJ
resistance/NN
against/IN
the/DT
British/JJ
government/NN
in/IN
India/NNP
./.
Unfortunately/RB
,/,
according/VBG
to/TO
Webster/NNP
's/POS
Biographical/NNP
Dictionary/NNP
,/,
``/``
His/PRP$
policies/NNS
went/VBD
beyond/IN
his/PRP$
control/NN
and/CC
resulted/VBD
.../:
in/IN
riots/NNS
and/CC
disturbances/NNS
''/''
and/CC
later/RBR
a/DT
renewed/VBN
campaign/NN
of/IN
civil/JJ
disobedience/NN
``/``
resulted/VBD
in/IN
rioting/NN
and/CC
a/DT
second/JJ
imprisonment/NN
./.
''/''
I/PRP
am/VBP
not/RB
a/DT
proponent/NN
of/IN
everything/NN
Gandhi/NNP
did/VBD
,/,
but/CC
some/DT
of/IN
his/PRP$
law/NN
breaking/NN
was/VBD
justified/JJ
because/IN
India/NNP
was/VBD
then/RB
under/IN
occupation/NN
by/IN
a/DT
foreign/JJ
power/NN
,/,
and/CC
Indians/NNPS
were/VBD
not/RB
able/JJ
to/TO
participate/VB
fully/RB
in/IN
decisions/NNS
that/WDT
vitally/RB
affected/VBD
them/PRP
./.
It/PRP
is/VBZ
difficult/JJ
,/,
however/RB
,/,
to/TO
justify/VB
civil/JJ
disobedience/NN
,/,
non-violent/JJ
or/CC
not/RB
,/,
where/WRB
citizens/NNS
have/VBP
full/JJ
recourse/NN
to/TO
the/DT
ballot/NN
box/NN
to/TO
effect/NN

change/NN
./.
Where/WRB
truly/RB
representative/JJ
governments/NNS
are/VBP
safeguarded/VBN
by/IN
constitutional/JJ
protections/NNS
of/IN
human/JJ
rights/NNS
and/CC
an/DT
independent/JJ
judiciary/NN
to/TO
construe/VB
those/DT
rights/NNS
,/,
there/EX
is/VBZ
no/DT
excuse/NN
for/IN
breaking/VBG
the/DT
law/NN
because/IN
some/DT
individual/NN
or/CC
group/NN
disagrees/VBZ
with/IN
it/PRP
./.
There/EX
may/MD
be/VB
a/DT
few/JJ
cases/NNS
where/WRB
the/DT
law/NN
breaking/NN
is/VBZ
well/RB
pinpointed/JJ
and/CC
so/RB
completely/RB
non-invasive/JJ
of/IN
the/DT
rights/NNS
of/IN
others/NNS
that/IN
it/PRP
is/VBZ
difficult/JJ
to/TO
criticize/VB
it/PRP
./.
The/DT
case/NN
of/IN
Rosa/NNP
Parks/NNP
,/,
the/DT
black/JJ
woman/NN
who/WP
refused/VBD
to/TO
sit/VB
at/IN
the/DT
back/NN
of/IN
the/DT
bus/NN
,/,
comes/VBZ
to/TO
mind/VB
as/IN
an/DT
illustration/NN
./.
But/CC
most/JJS
cases/NNS
of/IN
non-violent/JJ
civil/JJ
disobedience/NN
are/VBP
not/RB
nearly/RB
so/RB
benign/JJ
./.
The/DT
public/NN
has/VBZ
a/DT
tendency/NN
to/TO
equate/VB
lawful/JJ
demonstrations/NNS
with/IN
non-violent/JJ
civil/JJ
disobedience/NN
./.
It/PRP
is/VBZ
true/JJ
that/IN
both/DT
are/VBP
non-violent/JJ
,/,
but/CC
there/EX
is/VBZ
a/DT
fundamental/JJ
difference/NN
between/IN
them/PRP
./.
Lawful/JJ
demonstrations/NNS
,/,
such/JJ
as/IN
peaceful/JJ
picketing/NN
and/CC
other/JJ
assemblages/NNS
that/WDT
do/VBP
not/RB
disturb/VB
the/DT
peace/NN
or/CC
cause/VB
a/DT
public/JJ
nuisance/NN
or/CC
interfere/VB
with/IN
the/DT
rights/NNS
of/IN
others/NNS
,/,
are/VBP
rights/NNS
guaranteed/VBN
by/IN
any/DT
truly/RB
free/JJ
system/NN
of/IN
government/NN
./.
Civil/JJ
disobedience/NN
,/,
violent/JJ
or/CC
non-violent/JJ
,/,
is/VBZ
intentional/JJ
law/NN
breaking/NN
./.
The/DT
subject/NN
of/IN
this/DT
discussion/NN
is/VBZ
non-violent/JJ
civil/JJ
disobedience/NN
;/:
but/CC
,/,
before/IN
we/PRP
get/VBP
on/RB
with/IN
that/DT
,/,
let/VB
me/PRP
make/VB
just/RB
a/DT
few/JJ
tangential/JJ
remarks/NNS
about/IN
lawful/JJ
demonstrations/NNS
./.
They/PRP
are/VBP
useful/JJ
to/TO
call/VB
public/JJ
attention/NN
to/TO
grievances/NNS
,/,
but/CC
they/PRP
have/VBP
little/JJ
value/NN
in/IN
educating/VBG
anyone/NN
about/IN
the/DT
issues/NNS
in/IN
dispute/NN
./.
The/DT
delight/NN
of/IN
television/NN
in/IN
dramatic/JJ
confrontation/NN
encourages/VBZ
overuse/NN
of/IN
slogans/NNS
chanted/VBN
through/IN
bullhorns/NNS
,/,
militant/JJ
gestures/NNS
,/,
accusatory/JJ
signs/NNS
and/CC
other/JJ
emotionally/RB
inspired/JJ
tactics/NNS
./.
Civilized/JJ
discourse/NN
and/CC
an/DT
environment/NN
where/WRB
compromise/NN
can/MD
begin/VB
are/VBP
lost/VBN
in/IN
a/DT
hostile/JJ
posture/NN
abetted/VBN
by/IN
superficial/JJ
media/NNS
interviews/NNS
./.
At/IN
best/JJS
,/,
demonstrations/NNS
are/VBP
overused/JJ
and/CC
boringly/RB
uninformative/JJ
;/:
at/IN
worst/JJS
,/,
they/PRP
can/MD
become/VB
the/DT
stimuli/NNS
that/WDT
lead/VBP
to/TO
law/NN
breaking/NN
./.
Demonstrations/NNS
are/VBP
particularly/RB
apt/JJ
to/TO
degenerate/VB
into/IN
criminal/JJ
conduct/NN
when/WRB
they/PRP
leave/VBP
the/DT
site/NN
of/IN
the/DT
grievance/NN
and/CC
become/VBP
mobile/JJ
./.
Petty/JJ
criminals/NNS
and/CC
street/NN
people/NNS
looking/VBG
for/IN
excitement/NN
attach/VBP
themselves/PRP
like/IN
remora/NNS
to/TO
the/DT
fringes/NNS
of/IN
the/DT
crowd/NN
and/CC
use/VBP
the/DT
protest/NN
as/IN
an/DT
excuse/NN
for/IN
rock/NN
throwing/NN
,/,
auto/NN
trashing/NN
,/,
arson/NN
,/,
window/NN
breaking/NN
,/,
looting/NN
,/,
pocket/NN
picking/NN
and/CC
general/JJ
hooliganism/NN
./.
Soon/RB
the/DT
whole/JJ
purpose/NN
of/IN
the/DT
demonstration/NN
is/VBZ
lost/VBN
in/IN
mob/NN
mania/NN
./.
There/EX
are/VBP
better/JJR
ways/NNS
to/TO
promote/VB
a/DT
cause/NN
./.
Where/WRB
non-violent/JJ
civil/JJ
disobedience/NN
is/VBZ
the/DT
centerpiece/NN
,/,
rather/RB
than/IN
a/DT
lawful/JJ
demonstration/NN
that/WDT
may/MD
only/RB
attract/VB
crime/NN
,/,
it/PRP
is/VBZ
difficult/JJ
to/TO
justify/VB
./.
Some/DT
find/VBP
no/DT
harm/NN
in/IN
the/DT
misdemeanors/NNS
of/IN
trespass/NN
,/,
minor/JJ
property/NN
destruction/NN
,/,
blocking/VBG
traffic/NN
and/CC
the/DT
like/JJ
./.
They/PRP
say/VBP
these/DT
are/VBP
small/JJ
prices/NNS
to/TO
pay/VB
for/IN
galvanizing/VBG
action/NN
for/IN
the/DT
all-important/JJ
cause/NN
./.
The/DT
crimes/NNS
may/MD
appear/VB
small/JJ
,/,
but/CC
the/DT
prices/NNS
can/MD
be/VB
huge/JJ
./.
Here/RB
are/VBP
two/CD
cases/NNS
to/TO
illustrate/VB
./.
Assume/VB
a/DT
neighborhood/NN
demonstration/NN
to/TO
protest/VB
speeding/NN
on/IN
a/DT
certain/JJ
road/NN
or/CC
a/DT
careless/JJ
accident/NN
involving/VBG
a/DT
police/NN
car/NN
./.
The/DT
protesters/NNS
lie/VBP
down/RB
in/IN
the/DT
street/NN
,/,
blocking/VBG
traffic/NN
,/,
and/CC
will/MD
not/RB
move/VB
until/IN
the/DT
authorities/NNS
carry/VBP
them/PRP
away/RB
./.
Assume/VB
that/IN
someone/NN
caught/VBD
in/IN
the/DT
jam/NN
has/VBZ
a/DT
heart/NN
attack/NN
./.
There/EX
is/VBZ
no/DT
way/NN
to/TO
get/VB
an/DT
ambulance/NN
in/IN
quickly/RB
to/TO
move/VB
him/PRP
to/TO
a/DT
hospital/NN
./.
He/PRP
dies/VBZ
./.
The/DT
demonstration/NN
was/VBD
non-violent/JJ
and/CC
involved/VBN
only/RB
a/DT
simple/JJ
misdemeanor/NN
,/,
but/CC
its/PRP$
impact/NN
on/IN
that/DT
individual/NN
was/VBD
violent/JJ
and/CC
terminal/JJ
./.
Assume/VB
that/IN
a/DT
TV/NN
network/NN
is/VBZ
airing/VBG
a/DT
celebrity/NN
interview/NN
program/NN
with/IN
a/DT
live/JJ
audience/NN
./.
The/DT
politician/NN
appearing/VBG
is/VBZ
highly/RB
controversial/JJ
and/CC
has/VBZ
recently/RB
generated/VBN
a/DT
good/JJ
deal/NN
of/IN
rancor/NN
amid/IN
certain/JJ
groups/NNS
./.
In/IN
a/DT
planned/JJ
protest/NN
against/IN
his/PRP$
appearance/NN
,/,
several/JJ
members/NNS
of/IN
the/DT
studio/NN
audience/NN
chain/VBP
themselves/PRP
in/IN
front/NN
of/IN
the/DT
TV/NN
cameras/NNS
in/IN
such/JJ
a/DT
way/NN
that/IN
the/DT
program/NN
can/MD
not/RB
continue/VB
./.
The/DT
network/NN
must/MD
refund/VB
money/NN
to/TO
the/DT
advertisers/NNS
and/CC
loses/VBZ
considerable/JJ
revenue/NN
and/CC
prestige/NN
./.
The/DT
demonstrators/NNS
have/VBP
been/VBN
non-violent/JJ
,/,
but/CC
the/DT
result/NN
of/IN
their/PRP$
trespasses/NNS
has/VBZ
been/VBN
to/TO
seriously/RB
impair/VB
the/DT
rights/NNS
of/IN
others/NNS
unconnected/JJ
with/IN
their/PRP$
dispute/NN
./.
It/PRP
might/MD
be/VB
alleged/VBN
that/DT
TV/NN
has/VBZ
done/VBN
more/JJR
than/IN
its/PRP$
share/NN
to/TO
popularize/VB
and/CC
promote/VB
non-violent/JJ
civil/JJ
disobedience/NN
,/,
so/RB
the/DT
second/JJ
situation/NN
hypothesized/VBN
above/RB
would/MD
be/VB
simply/RB
a/DT
case/NN
of/IN
``/``
chickens/NNS
coming/VBG
home/RB
to/TO
roost/VB
./.
''/''
Or/CC
maybe/RB
the/DT
TV/NN
network/NN
would/MD
lose/VB
nothing/NN
./.
Geraldo/NNP
or/CC
Phil/NNP
would/MD
probably/RB
pull/VB
up/RP
another/DT
camera/NN
and/CC
interview/VB
the/DT
chained/JJ
protesters/NNS
./.
Let/VB
us/PRP
look/VB
for/IN
a/DT
moment/NN
at/IN
another/DT
type/NN
of/IN
non-violent/JJ
civil/JJ
disobedience/NN
that/WDT
only/RB
harms/VBZ
other/JJ
people/NNS
indirectly/RB
,/,
yet/RB
does/VBZ
irreparable/JJ
damage/NN
to/TO
the/DT
nation/NN
as/IN
a/DT
whole/NN
./.
I/PRP
am/VBP
referring/VBG
to/TO
those/DT
young/JJ
men/NNS
who/WP
chose/VBD
to/TO
disobey/VB
their/PRP$
country/NN
's/POS
call/NN
to/TO
arms/NNS
during/IN
the/DT
Vietnam/NNP
war/NN
and/CC
fled/VBD
to/TO
Canada/NNP
or/CC
some/DT
other/JJ
sanctuary/NN
to/TO
avoid/VB
combat/NN
./.
Their/PRP$
cowardly/JJ
acts/NNS
of/IN
civil/JJ
disobedience/NN
,/,
which/WDT
they/PRP
tried/VBD
to/TO
hide/VB
under/IN
the/DT
cloak/NN
of/IN
outrage/NN
at/IN
a/DT
war/NN
they/PRP
characterized/VBD
as/IN
``/``
immoral/JJ
,/,
''/''
weakened/VBD
the/DT
national/JJ
fabric/NN
and/CC
threw/VBD
additional/JJ
burdens/NNS
on/IN
those/DT
who/WP
served/VBD
honorably/RB
in/IN
that/DT
conflict/NN
./.
Even/RB
more/JJR
at/IN
fault/NN
are/VBP
those/DT
leaders/NNS
in/IN
and/CC
out/IN
of/IN
government/NN
who/WP
urged/VBD
and/CC
supported/VBD
their/PRP$
defections/NNS
,/,
thereby/RB
giving/VBG
great/JJ
help/NN
and/CC
comfort/NN
to/TO
the/DT
enemy/NN
propagandists/NNS
./.
It/PRP
is/VBZ
amazing/JJ
that/IN
the/DT
ensuing/VBG
mass/NN
executions/NNS
in/IN
Vietnam/NNP
and/CC
Cambodia/NNP
do/VBP
not/RB
weight/VB
more/RBR
heavily/RB
on/IN
minds/NNS
so/RB
morally/RB
fine-tuned/JJ
./.
Worse/JJR
,/,
it/PRP
remained/VBD
to/TO
a/DT
well-meaning/JJ
but/CC
naive/JJ
president/NN
of/IN
the/DT
United/NNP
States/NNPS
to/TO
administer/VB
the/DT
final/JJ
infamy/NN
upon/IN
those/DT
who/WP
fought/VBD
and/CC
died/VBD
in/IN
Vietnam/NNP
./.
Under/IN
the/DT
guise/NN
of/IN
``/``
healing/VBG
the/DT
wounds/NNS
of/IN
the/DT
nation/NN
,/,
''/''
President/NNP
Carter/NNP
pardoned/VBD
thousands/NNS
of/IN
draft/NN
evaders/NNS
,/,
thus/RB
giving/VBG
dignity/NN
to/TO
their/PRP$
allegations/NNS
of/IN
the/DT
war/NN
's/POS
``/``
immorality/NN
./.
''/''
The/DT
precedent/NN
having/VBG
been/VBN
set/VBN
,/,
who/WP
can/MD
complain/VB
if/IN
future/JJ
generations/NNS
called/VBN
upon/RB
to/TO
defend/VB
the/DT
U.S./NNP
yield/VBP
to/TO
the/DT
temptation/NN
to/TO
avoid/VB
the/DT
danger/NN
of/IN
combat/NN
by/IN
simply/RB
declaring/VBG
the/DT
war/NN
immoral/JJ
and/CC
hiding/VBG
until/IN
it/PRP
is/VBZ
over/RP
?/.
Finally/RB
,/,
I/PRP
think/VBP
it/PRP
important/JJ
to/TO
point/VB
out/RP
the/DT
extraordinarily/RB
high/JJ
visibility/NN
of/IN
non-violent/JJ
civil/JJ
disobedience/NN
in/IN
these/DT
days/NNS
of/IN
intensive/JJ
media/NNS
coverage/NN
./.
Give/VB
television/NN
a/DT
chance/NN
to/TO
cover/VB
live/RB
any/DT
breaking/NN
of/IN
the/DT
law/NN
,/,
and/CC
no/DT
second/JJ
invitation/NN
will/MD
be/VB
required/VBN
./.
This/DT
brings/VBZ
into/IN
question/NN
the/DT
motives/NNS
of/IN
those/DT
who/WP
lead/VBP
civil/JJ
disobedience/NN
demonstrations/NNS
./.
Do/VBP
they/PRP
want/VB
the/DT
spotlight/NN
for/IN
themselves/PRP
or/CC
for/IN
their/PRP$
cause/NN
?/.
Here/RB
is/VBZ
a/DT
good/JJ
rule/NN
of/IN
thumb/NN
:/:
If/IN
the/DT
movement/NN
produced/VBD
the/DT
leader/NN
,/,
the/DT
chance/NN
that/IN
he/PRP
is/VBZ
sincere/JJ
is/VBZ
much/RB
greater/JJR
than/IN
if/IN
the/DT
leader/NN
produced/VBD
the/DT
movement/NN
./.
In/IN
either/DT
case/NN
,/,
ask/VB
yourself/PRP
whether/IN
you/PRP
have/VBP
become/VBN
better/RBR
informed/JJ
on/IN
the/DT
issues/NNS
under/IN
protest/NN
by/IN
watching/VBG
the/DT
act/NN
of/IN
civil/JJ
disobedience/NN
./.
If/IN
you/PRP
have/VBP
not/RB
,/,
it/PRP
is/VBZ
probable/JJ
that/IN
a/DT
thorough/JJ
airing/NN
of/IN
the/DT
dispute/NN
by/IN
calm/JJ
and/CC
rational/JJ
debate/NN
would/MD
have/VB
been/VBN
the/DT
better/JJR
course/NN
./.
Mr./NNP
Agnew/NNP
was/VBD
vice/NN
president/NN
of/IN
the/DT
U.S./NNP
from/IN
1969/CD
until/IN
he/PRP
resigned/VBD
in/IN
1973/CD
./.
Gov./NNP
George/NNP
Deukmejian/NNP
and/CC
key/JJ
legislators/NNS
agreed/VBD
to/TO
back/VB
a/DT
temporary/JJ
one-quarter-cent/JJ
increase/NN
in/IN
the/DT
state/NN
sales/NNS
tax/NN
to/TO
raise/VB
$/$
800/CD
million/CD
for/IN
repairs/NNS
and/CC
relief/NN
associated/VBN
with/IN
last/JJ
month/NN
's/POS
earthquake/NN
./.
The/DT
tax/NN
increase/NN
,/,
which/WDT
will/MD
be/VB
considered/VBN
at/IN
a/DT
special/JJ
session/NN
of/IN
the/DT
state/NN
legislature/NN
that/WDT
begins/VBZ
tomorrow/NN
,/,
would/MD
cover/VB
only/JJ
part/NN
of/IN
the/DT
estimated/VBN
$/$
4/CD
billion/CD
to/TO
$/$
6/CD
billion/CD
in/IN
total/JJ
damage/NN
caused/VBN
by/IN
the/DT
Oct./NNP
17/CD
quake/NN
./.
Aside/RB
from/IN
as/RB
much/JJ
as/IN
$/$
3.45/CD
billion/CD
in/IN
recently/RB
approved/VBN
federal/JJ
aid/NN
,/,
the/DT
state/NN
is/VBZ
expected/VBN
to/TO
draw/VB
from/IN
a/DT
gubernatorial/JJ
emergency/NN
fund/NN
that/WDT
currently/RB
stands/VBZ
at/IN
an/DT
estimated/VBN
$/$
700/CD
million/CD
./.
``/``
I/PRP
am/VBP
not/RB
aware/JJ
that/IN
there/EX
is/VBZ
anything/NN
but/CC
bipartisan/JJ
agreement/NN
for/IN
the/DT
general/JJ
outline/NN
''/''
of/IN
the/DT
revenue-raising/JJ
plan/NN
,/,
said/VBD
a/DT
spokesman/NN
for/IN
the/DT
governor/NN
,/,
after/IN
a/DT
Monday/NNP
meeting/NN
with/IN
legislative/JJ
leaders/NNS
over/IN
the/DT
quake-relief/JJ
question/NN
./.
The/DT
tax/NN
increase/NN
--/:
on/IN
top/NN
of/IN
the/DT
current/JJ
six-cent/JJ
per/IN
dollar/NN
sales/NNS
tax/NN
--/:
would/MD
become/VB
effective/JJ
this/DT
Dec./NNP
1/CD
and/CC
expire/VB
Dec./NNP
31/CD
,/,
1990/CD
./.
The/DT
sales-tax/NN
plan/NN
was/VBD
preferred/VBN
over/IN
an/DT
alternative/NN
that/WDT
would/MD
have/VB
boosted/VBN
the/DT
state/NN
gasoline/NN
tax/NN
./.
Some/DT
legislators/NNS
expressed/VBD
concern/NN
that/IN
a/DT
gas-tax/NN
increase/NN
would/MD
take/VB
too/RB
long/RB
and/CC
possibly/RB
damage/VB
chances/NNS
of/IN
a/DT
major/JJ
gas-tax-increasing/JJ
ballot/NN
initiative/NN
that/IN
voters/NNS
will/MD
consider/VB
next/JJ
June/NNP
./.
Despite/IN
continuing/VBG
problems/NNS
in/IN
its/PRP$
newsprint/NN
business/NN
,/,
Kimberly-Clark/NNP
Corp./NNP
posted/VBD
a/DT
20/CD
%/NN
gain/NN
in/IN
third-quarter/JJ
net/JJ
income/NN
./.
The/DT
consumer-products/NNS
and/CC
newsprint/NN
company/NN
said/VBD
net/NN
rose/VBD
to/TO
$/$
108.8/CD
million/CD
,/,
or/CC
$/$
1.35/CD
a/DT
share/NN
,/,
from/IN
$/$
90.5/CD
million/CD
,/,
or/CC
$/$
1.12/CD
a/DT
share/NN
,/,
a/DT
year/NN
ago/RB
./.
Sales/NNS
rose/VBD
6.2/CD
%/NN
to/TO
$/$
1.45/CD
billion/CD
from/IN
$/$
1.37/CD
billion/CD
./.
After/IN
a/DT
flat/JJ
second/JJ
quarter/NN
tied/VBN
largely/RB
to/TO
lower/JJR
newsprint/NN
earnings/NNS
,/,
Kimberly-Clark/NNP
attributed/VBD
the/DT
gain/NN
to/TO
improved/VBN
results/NNS
in/IN
its/PRP$
consumer/NN
businesses/NNS
in/IN
North/NNP
America/NNP
,/,
Brazil/NNP
and/CC
Korea/NNP
./.
Those/DT
gains/NNS
came/VBD
from/IN
higher/JJR
prices/NNS
,/,
particularly/RB
for/IN
disposable/JJ
diapers/NNS
and/CC
tissue/NN
products/NNS
,/,
and/CC
from/IN
increased/VBN
sales/NNS
,/,
primarily/RB
for/IN
feminine-care/JJ
products/NNS
,/,
the/DT
company/NN
said/VBD
./.
Newsprint/NN
results/NNS
continued/VBD
to/TO
be/VB
depressed/JJ
,/,
the/DT
company/NN
added/VBD
,/,
because/IN
of/IN
industrywide/JJ
price/NN
discounting/NN
./.
The/DT
quarter-to-quarter/JJ
comparison/NN
was/VBD
also/RB
enhanced/VBN
by/IN
charges/NNS
taken/VBN
in/IN
the/DT
year-earlier/JJ
period/NN
,/,
including/VBG
$/$
11/CD
million/CD
related/JJ
to/TO
the/DT
modernization/NN
of/IN
a/DT
pulp/NN
and/CC
newsprint/NN
mill/NN
in/IN
Alabama/NNP
./.
In/IN
the/DT
1989/CD
period/NN
also/RB
,/,
interest/NN
expense/NN
and/CC
tax/NN
rates/NNS
were/VBD
lower/JJR
than/IN
a/DT
year/NN
ago/RB
./.
In/IN
the/DT
first/JJ
nine/CD
months/NNS
,/,
profit/NN
rose/VBD
10/CD
%/NN
to/TO
$/$
313.2/CD
million/CD
,/,
or/CC
$/$
3.89/CD
a/DT
share/NN
,/,
from/IN
$/$
283.9/CD
million/CD
,/,
or/CC
$/$
3.53/CD
a/DT
share/NN
./.
Sales/NNS
rose/VBD
6.7/CD
%/NN
to/TO
$/$
4.27/CD
billion/CD
from/IN
$/$
4/CD
billion/CD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Kimberly-Clark/NNP
closed/VBD
at/IN
$/$
66.50/CD
a/DT
share/NN
,/,
up/RB
$/$
1.50/CD
./.
INTENSIVE/JJ
AUDITS/NNS
are/VBP
coming/VBG
to/TO
55,500/CD
taxpayers/NNS
as/IN
research/NN
guinea/NN
pigs/NNS
./.
This/DT
is/VBZ
the/DT
year/NN
:/:
Unsuspecting/JJ
filers/NNS
of/IN
1988/CD
personal/JJ
returns/NNS
are/VBP
being/VBG
picked/VBD
randomly/RB
for/IN
thorough/JJ
audits/NN
to/TO
help/VB
the/DT
IRS/NNP
update/VB
its/PRP$
criteria/NNS
for/IN
enforcement/NN
,/,
audit/NN
selection/NN
,/,
and/CC
use/NN
of/IN
resources/NNS
./.
The/DT
last/JJ
Taxpayer/NNP
Compliance/NNP
Measurement/NNP
Program/NNP
survey/NN
covered/VBD
1985/CD
returns/NNS
./.
The/DT
1988-return/JJ
project/NN
starts/VBZ
Jan./NNP
1/CD
and/CC
is/VBZ
to/TO
be/VB
done/VBN
by/IN
May/NNP
31/CD
,/,
1991/CD
./.
Specially/RB
trained/JJ
IRS/NNP
agents/NNS
will/MD
look/VB
for/IN
under-reported/JJ
income/NN
and/CC
unsupported/JJ
deductions/NNS
and/CC
credits/NNS
./.
The/DT
agents/NNS
will/MD
make/VB
more/JJR
than/IN
routine/JJ
inquiries/NNS
about/IN
such/JJ
items/NNS
as/IN
marital/JJ
status/NN
and/CC
dependents/NNS
;/:
they/PRP
want/VBP
to/TO
look/VB
at/IN
living/NN
standards/NNS
and/CC
business/NN
assets/NNS
./.
But/CC
they/PRP
also/RB
are/VBP
to/TO
see/VB
that/IN
taxpayers/NNS
get/VBP
all/DT
allowable/JJ
tax/NN
benefits/NNS
and/CC
to/TO
ask/VB
if/IN
filers/NNS
who/WP
sought/VBD
IRS/NNP
aid/NN
were/VBD
satisfied/JJ
with/IN
it/PRP
./.
Courts/NNS
have/VBP
ruled/VBN
that/IN
taxpayers/NNS
must/MD
submit/VB
to/TO
TCMP/NNP
audits/NN
,/,
but/CC
the/DT
IRS/NNP
will/MD
excuse/VB
from/IN
the/DT
fullscale/JJ
rigors/NNS
anyone/NN
who/WP
was/VBD
audited/VBN
without/IN
change/NN
for/IN
either/DT
1986/CD
or/CC
1987/CD
./.
Rewards/NNS
have/VBP
been/VBN
suggested/VBN
--/:
but/CC
never/RB
adopted/VBN
--/:
for/IN
filers/NNS
who/WP
come/VBP
through/IN
TCMP/NNP
audits/NN
without/IN
change/NN
./.
PENALTY/NN
OVERHAUL/NN
is/VBZ
still/RB
likely/JJ
,/,
congressional/JJ
sources/NNS
say/VBP
./.
Long-debated/JJ
proposals/NNS
to/TO
simplify/VB
the/DT
more/JJR
than/IN
150/CD
civil/JJ
penalties/NNS
and/CC
make/VB
them/PRP
fairer/JJR
and/CC
easier/JJR
to/TO
administer/VB
are/VBP
in/IN
the/DT
House/NNP
tax/NN
bill/NN
./.
But/CC
they/PRP
were/VBD
stripped/VBN
from/IN
the/DT
Senate/NNP
bill/NN
after/IN
staffers/NNS
estimated/VBD
penalty/NN
revenue/NN
would/MD
fall/VB
by/IN
$/$
216/CD
million/CD
over/IN
five/CD
years/NNS
./.
Still/RB
,/,
congressional/JJ
aides/NNS
say/VBP
penalty/NN
reform/NN
is/VBZ
a/DT
strong/JJ
candidate/NN
for/IN
enactment/NN
,/,
even/RB
if/IN
not/RB
this/DT
time/NN
around/RB
,/,
although/IN
some/DT
provisions/NNS
may/MD
be/VB
modified/VBN
./.
Sen./NNP
Pryor/NNP
D./NNP
,/,
Ark./NNP
a/DT
leader/NN
on/IN
the/DT
issue/NN
who/WP
generally/RB
backs/VBZ
the/DT
House/NNP
plan/NN
,/,
wants/VBZ
some/DT
changes/NNS
--/:
for/IN
one/CD
,/,
separate/JJ
sanctions/NNS
for/IN
negligence/NN
and/CC
large/JJ
misstatements/NNS
of/IN
tax/NN
owed/VBN
,/,
not/RB
a/DT
single/JJ
penalty/NN
./.
He/PRP
would/MD
ease/VB
the/DT
proposed/VBN
penalties/NNS
for/IN
delayed/JJ
payroll-tax/NN
deposits/NNS
and/CC
for/IN
faulty/JJ
Form/NN
1099/CD
and/CC
other/JJ
reports/NNS
that/IN
taxpayers/NNS
correct/VBP
voluntarily/RB
./.
The/DT
General/NNP
Accounting/NNP
Office/NNP
urges/VBZ
Congress/NNP
to/TO
ensure/VB
that/IN
all/DT
penalties/NNS
retain/VBP
their/PRP$
force/NN
as/IN
deterrents/NNS
./.
TAXPAYERS/NNS
'/POS
RIGHTS/NNS
are/VBP
defined/VBN
by/IN
a/DT
growing/VBG
number/NN
of/IN
states/NNS
./.
The/DT
1988/CD
tax/NN
act/NN
created/VBD
a/DT
federal/JJ
bill/NN
of/IN
rights/NNS
spelling/VBG
out/RP
IRS/NNP
duties/NNS
to/TO
protect/VB
taxpayers/NNS
'/POS
rights/NNS
in/IN
the/DT
assessment/NN
and/CC
collection/NN
of/IN
taxes/NNS
./.
States/NNS
are/VBP
following/VBG
suit/NN
./.
California/NNP
enacted/VBD
a/DT
rights/NNS
law/NN
in/IN
1988/CD
./.
In/IN
1989/CD
,/,
Illinois/NNP
,/,
Kansas/NNP
,/,
Ohio/NNP
,/,
Oregon/NNP
and/CC
South/NNP
Carolina/NNP
have/VBP
adopted/VBN
rights/NNS
laws/NNS
,/,
the/DT
Federation/NNP
of/IN
Tax/NNP
Administrators/NNPS
,/,
a/DT
state/NN
officials/NNS
'/POS
group/NN
,/,
reports/VBZ
;/:
the/DT
features/NNS
vary/VBP
./.
And/CC
taxpayer/NN
groups/NNS
are/VBP
urging/VBG
legislation/NN
in/IN
many/JJ
other/JJ
states/NNS
./.
One/CD
group/NN
is/VBZ
the/DT
Committee/NN
on/IN
State/NNP
Taxation/NNP
,/,
which/WDT
comprises/VBZ
330/CD
multistate/NN
corporations/NNS
and/CC
advises/VBZ
the/DT
Council/NNP
of/IN
State/NNP
Chambers/NNPS
of/IN
Commerce/NNP
./.
The/DT
group/NN
's/POS
Mark/NNP
Cahoon/NNP
says/VBZ
its/PRP$
efforts/NNS
begun/VBN
in/IN
1989/CD
have/VBP
led/VBN
to/TO
the/DT
introduction/NN
of/IN
bills/NNS
in/IN
Massachusetts/NNP
,/,
Minnesota/NNP
and/CC
Colorado/NNP
to/TO
establish/VB
evenhanded/JJ
procedures/NNS
affecting/VBG
all/DT
kinds/NNS
of/IN
taxpayers/NNS
./.
The/DT
group/NN
also/RB
seeks/VBZ
uniformity/NN
among/IN
states/NNS
in/IN
provisions/NNS
for/IN
taxpayers/NNS
'/POS
rights/NNS
./.
This/DT
week/NN
,/,
New/NNP
York/NNP
City/NNP
announced/VBD
a/DT
10-point/JJ
policy/NN
patterned/VBN
on/IN
the/DT
federal/JJ
bill/NN
of/IN
rights/NNS
for/IN
taxpayers/NNS
./.
THE/DT
MILEAGE/NN
RATE/NN
allowed/VBN
for/IN
business/NN
use/NN
of/IN
a/DT
car/NN
in/IN
1989/CD
has/VBZ
risen/VBN
to/TO
25.5/CD
cents/NNS
a/DT
mile/NN
for/IN
the/DT
first/JJ
15,000/CD
from/IN
24/CD
cents/NNS
in/IN
1988/CD
,/,
the/DT
IRS/NNP
says/VBZ
;/:
the/DT
rate/NN
stays/VBZ
11/CD
cents/NNS
for/IN
each/DT
added/VBN
mile/NN
./.
Also/RB
unaltered/JJ
:/:
12/CD
cents/NNS
for/IN
charitable/JJ
activities/NNS
and/CC
nine/CD
cents/NNS
for/IN
medical/JJ
and/CC
moving/NN
costs/NNS
./.
IRA/NNP
BALANCES/NNS
could/MD
be/VB
used/VBN
to/TO
qualify/VB
for/IN
bank/NN
services/NNS
under/IN
a/DT
bill/NN
entered/VBN
by/IN
Reps./NNPS
Chandler/NNP
R./NNP
,/,
Wash/NNP
./.
Andrews/NNP
D./NNP
,/,
Texas/NNP
The/DT
bill/NN
would/MD
thwart/VB
a/DT
recent/JJ
Labor/NNP
Department/NNP
opinion/NN
that/IN
investing/VBG
individual-retirement-account/NN
funds/NNS
to/TO
earn/VB
free/JJ
checking/NN
violates/VBZ
the/DT
law/NN
./.
HUGO/NNP
FELLED/VBD
vast/JJ
timberlands/NNS
./.
South/NNP
Carolina/NNP
's/POS
congressional/JJ
delegation/NN
has/VBZ
entered/VBN
Senate/NNP
and/CC
House/NNP
bills/NNS
to/TO
provide/VB
special/JJ
casualty-loss/JJ
treatment/NN
and/CC
other/JJ
tax/NN
relief/NN
for/IN
timber/NN
growers/NNS
in/IN
the/DT
hurricane/NN
disaster/NN
areas/NNS
./.
HE/PRP
RODE/VBD
HIS/PRP$
HOBBY/NN
,/,
but/CC
he/PRP
could/MD
n't/RB
milk/VB
it/PRP
,/,
the/DT
Tax/NNP
Court/NNP
says/VBZ
./.
The/DT
court/NN
often/RB
weighs/VBZ
deductions/NNS
of/IN
sideline-business/JJ
costs/NNS
:/:
Do/VBP
they/PRP
stem/VB
from/IN
a/DT
profit-seeking/JJ
activity/NN
or/CC
a/DT
nondeductible/JJ
hobby/NN
?/.
But/CC
it/PRP
's/VBZ
rare/JJ
to/TO
see/VB
both/DT
functions/NNS
in/IN
one/CD
case/NN
./.
Charles/NNP
O./NNP
Givens/NNP
of/IN
Mount/NNP
Vernon/NNP
,/,
Ind./NNP
-/:
investment/NN
broker/NN
,/,
ex-accountant/NN
,/,
and/CC
son/NN
of/IN
a/DT
former/JJ
stable/NN
owner/NN
-/:
bred/VBD
Tennessee/NNP
Walking/VBG
Horses/NNS
for/IN
six/CD
years/NNS
,/,
raised/VBD
cattle/NNS
for/IN
four/CD
,/,
and/CC
never/RB
made/VBD
a/DT
profit/NN
on/IN
either/DT
./.
He/PRP
claimed/VBD
losses/NNS
totaling/VBG
$/$
42,455/CD
--/:
and/CC
the/DT
IRS/NNP
denied/VBD
them/PRP
all/DT
./.
Special/JJ
Judge/NNP
Galloway/NNP
noted/VBD
that/IN
Givens/NNP
managed/VBD
horse-breeding/NN
in/IN
a/DT
businesslike/JJ
way/NN
:/:
He/PRP
kept/VBD
detailed/JJ
accounts/NNS
,/,
practiced/VBD
soil/NN
conservation/NN
,/,
enhanced/VBD
his/PRP$
experience/NN
by/IN
consulting/VBG
experts/NNS
,/,
spent/VBD
several/JJ
hours/NNS
a/DT
day/NN
doing/VBG
chores/NNS
,/,
and/CC
dropped/VBD
the/DT
sideline/NN
when/WRB
his/PRP$
best/JJS
brood/NN
mare/NN
died/VBD
./.
Yet/CC
he/PRP
took/VBD
little/RB
businesslike/JJ
care/NN
with/IN
his/PRP$
cattle/NNS
:/:
He/PRP
had/VBD
no/DT
prior/JJ
experience/NN
and/CC
did/VBD
n't/RB
seek/VB
business/NN
counsel/NN
about/IN
them/PRP
./.
The/DT
judge/NN
said/VBD
Givens/NNP
may/MD
deduct/VB
his/PRP$
$/$
30,180/CD
of/IN
losses/NNS
from/IN
horse/NN
breeding/NN
,/,
but/CC
rejected/VBD
the/DT
$/$
12,275/CD
in/IN
deductions/NNS
from/IN
the/DT
cattle/NNS
operation/NN
./.
BRIEFS/NNS
:/:
The/DT
IRS/NNP
already/RB
is/VBZ
doing/VBG
intensive/JJ
TCMP/NNP
audits/NN
of/IN
19,000/CD
returns/NNS
for/IN
1987/CD
and/CC
fiscal/JJ
1988/CD
filed/VBN
by/IN
corporations/NNS
with/IN
under/IN
$/$
10/CD
million/CD
in/IN
assets/NNS
.../:
./.
President/NNP
Bush/NNP
says/VBZ
he/PRP
will/MD
name/VB
Donald/NNP
E./NNP
Kirkendall/NNP
to/TO
the/DT
new/JJ
Treasury/NNP
post/NN
of/IN
inspector/NN
general/NN
,/,
which/WDT
has/VBZ
responsibilities/NNS
for/IN
the/DT
IRS/NNP
.../:
./.
The/DT
U.S./NNP
and/CC
Finland/NNP
signed/VBD
an/DT
income-tax/NN
treaty/NN
,/,
subject/JJ
to/TO
ratification/NN
./.
An/DT
arbitrator/NN
awarded/VBD
Eastern/NNP
Airlines/NNPS
pilots/NNS
between/IN
$/$
60/CD
million/CD
and/CC
$/$
100/CD
million/CD
in/IN
back/JJ
pay/NN
,/,
a/DT
decision/NN
that/WDT
could/MD
complicate/VB
the/DT
carrier/NN
's/POS
bankruptcy-law/NN
reorganization/NN
./.
Eastern/NNP
,/,
a/DT
unit/NN
of/IN
Texas/NNP
Air/NNP
Corp./NNP
,/,
said/VBD
it/PRP
is/VBZ
examining/VBG
the/DT
ruling/NN
to/TO
determine/VB
if/IN
it/PRP
can/MD
appeal/VB
./.
It/PRP
's/VBZ
unclear/JJ
whether/IN
Eastern/NNP
will/MD
succeed/VB
in/IN
overturning/VBG
the/DT
arbitrator/NN
's/POS
decision/NN
,/,
made/VBN
in/IN
a/DT
long-simmering/JJ
``/``
pay/NN
parity/NN
''/''
dispute/NN
that/WDT
predates/VBZ
both/DT
the/DT
carrier/NN
's/POS
Chapter/NN
11/CD
petition/NN
and/CC
its/PRP$
1986/CD
acquisition/NN
by/IN
Texas/NNP
Air/NNP
./.
All/DT
Eastern/NNP
's/POS
previous/JJ
court/NN
efforts/NNS
to/TO
head/VB
off/RP
the/DT
pilots/NNS
'/POS
demands/NNS
have/VBP
failed/VBN
./.
An/DT
Eastern/NNP
spokesman/NN
said/VBD
he/PRP
does/VBZ
n't/RB
expect/VB
that/IN
the/DT
arbitrator/NN
's/POS
ruling/NN
``/``
will/MD
have/VB
any/DT
overall/JJ
material/JJ
effect/NN
on/IN
the/DT
company/NN
's/POS
strategic/JJ
plan/NN
./.
''/''
Bankruptcy/NN
experts/NNS
said/VBD
the/DT
law/NN
is/VBZ
n't/RB
clear/JJ
on/IN
how/WRB
such/JJ
an/DT
arbitration/NN
ruling/NN
can/MD
affect/VB
a/DT
company/NN
's/POS
case/NN
./.
Like/IN
any/DT
other/JJ
creditor/NN
,/,
the/DT
pilots/NNS
will/MD
have/VB
to/TO
apply/VB
to/TO
the/DT
court/NN
for/IN
payment/NN
of/IN
their/PRP$
claim/NN
./.
That/DT
may/MD
leave/VB
a/DT
lot/NN
of/IN
leeway/NN
for/IN
U.S./NNP
Bankruptcy/NNP
Judge/NNP
Burton/NNP
R./NNP
Lifland/NNP
to/TO
decide/VB
what/WP
,/,
if/IN
anything/NN
,/,
the/DT
pilots/NNS
actually/RB
collect/VBP
./.
In/IN
August/NNP
,/,
he/PRP
issued/VBD
the/DT
ruling/NN
that/WDT
let/VBD
the/DT
pilots/NNS
pursue/VB
their/PRP$
back-pay/NN
grievance/NN
before/IN
the/DT
arbitrator/NN
./.
The/DT
pilots/NNS
'/POS
contract/NN
with/IN
Eastern/NNP
calls/VBZ
for/IN
a/DT
mutually/RB
acceptable/JJ
private/JJ
arbitrator/NN
to/TO
resolve/VB
such/JJ
grievances/NNS
./.
In/IN
a/DT
statement/NN
to/TO
employees/NNS
,/,
Eastern/NNP
said/VBD
the/DT
company/NN
was/VBD
disappointed/JJ
by/IN
the/DT
ruling/NN
./.
``/``
The/DT
obligation/NN
is/VBZ
totally/RB
unwarranted/JJ
,/,
''/''
the/DT
statement/NN
said/VBD
./.
James/NNP
Linsey/NNP
,/,
a/DT
lawyer/NN
for/IN
the/DT
Air/NNP
Line/NNP
Pilots/NNPS
Association/NNP
,/,
said/VBD
the/DT
pilots/NNS
were/VBD
extremely/RB
pleased/JJ
./.
``/``
This/DT
is/VBZ
a/DT
blow/NN
not/RB
only/RB
to/TO
Eastern/NNP
but/CC
to/TO
the/DT
creditors/NNS
committee/NN
,/,
''/''
he/PRP
said/VBD
./.
Eastern/NNP
's/POS
creditors/NNS
committee/NN
,/,
along/IN
with/IN
the/DT
company/NN
,/,
has/VBZ
consistently/RB
opposed/VBN
the/DT
pilots/NNS
'/POS
claim/NN
,/,
which/WDT
if/IN
paid/VBN
would/MD
have/VB
to/TO
come/VB
out/IN
of/IN
money/NN
both/DT
hope/VBP
to/TO
use/VB
to/TO
pay/VB
off/RP
other/JJ
bankruptcy/NN
claims/NNS
./.
Eastern/NNP
and/CC
its/PRP$
creditors/NNS
are/VBP
in/IN
the/DT
final/JJ
,/,
delicate/JJ
stages/NNS
of/IN
negotiating/VBG
a/DT
second/JJ
reorganization/NN
plan/NN
to/TO
pay/VB
off/RP
the/DT
airline/NN
's/POS
debts/NNS
./.
An/DT
earlier/JJR
plan/NN
,/,
which/WDT
had/VBD
received/VBN
the/DT
creditors/NNS
'/POS
approval/NN
in/IN
July/NNP
,/,
fell/VBD
apart/RB
when/WRB
Eastern/NNP
changed/VBD
its/PRP$
business/NN
plan/NN
./.
It/PRP
is/VBZ
n't/RB
known/JJ
whether/IN
the/DT
pilot/NN
claim/NN
was/VBD
figured/VBN
into/IN
either/DT
plan/NN
./.
The/DT
dispute/NN
between/IN
Eastern/NNP
and/CC
its/PRP$
pilots/NNS
is/VBZ
over/IN
a/DT
``/``
pay/NN
parity/NN
''/''
clause/NN
in/IN
the/DT
pilots/NNS
'/POS
contract/NN
./.
The/DT
clause/NN
was/VBD
part/NN
of/IN
an/DT
agreement/NN
in/IN
which/WDT
pilots/NNS
accepted/VBD
a/DT
substantial/JJ
pay/NN
cut/NN
as/RB
long/RB
as/IN
no/DT
other/JJ
labor/NN
group/NN
got/VBD
a/DT
raise/NN
./.
Shortly/RB
after/IN
Texas/NNP
Air/NNP
took/VBD
control/NN
of/IN
Eastern/NNP
,/,
some/DT
Machinists/NNS
union/NN
supervisors/NNS
received/VBD
a/DT
20/CD
%/NN
pay/NN
raise/NN
./.
The/DT
pilots/NNS
argued/VBD
that/IN
this/DT
triggered/VBD
a/DT
pay/NN
raise/NN
for/IN
them/PRP
./.
Eastern/NNP
has/VBZ
disputed/VBN
the/DT
claim/NN
,/,
but/CC
a/DT
federal/JJ
district/NN
court/NN
,/,
an/DT
appeals/NNS
court/NN
and/CC
now/RB
the/DT
arbitrator/NN
have/VBP
all/DT
sided/VBN
with/IN
the/DT
pilots/NNS
./.
The/DT
two/CD
sides/NNS
do/VBP
n't/RB
even/RB
agree/VB
about/IN
how/WRB
much/JJ
money/NN
is/VBZ
at/IN
issue/NN
./.
The/DT
pilots/NNS
put/VBD
the/DT
amount/NN
as/RB
high/JJ
as/IN
$/$
100/CD
million/CD
,/,
the/DT
company/NN
at/IN
$/$
65/CD
million/CD
./.
Another/DT
arbitrator/NN
is/VBZ
hearing/VBG
another/DT
pay/NN
parity/NN
case/NN
between/IN
Eastern/NNP
and/CC
its/PRP$
pilots/NNS
,/,
resulting/VBG
from/IN
a/DT
similar/JJ
set/NN
of/IN
circumstances/NNS
involving/VBG
a/DT
separate/JJ
pay/NN
raise/NN
granted/VBN
another/DT
union/NN
./.
A/DT
decision/NN
on/IN
that/DT
case/NN
is/VBZ
n't/RB
expected/VBN
before/IN
mid-November/NNP
./.
Ironically/RB
,/,
many/JJ
of/IN
the/DT
pilots/NNS
involved/VBN
have/VBP
left/VBN
Eastern/NNP
or/CC
are/VBP
still/RB
striking/VBG
the/DT
carrier/NN
,/,
which/WDT
filed/VBD
for/IN
bankruptcy/NN
protection/NN
March/NNP
9/CD
./.
About/IN
800/CD
have/VBP
crossed/VBN
the/DT
picket/NN
lines/NNS
and/CC
returned/VBN
to/TO
work/VB
./.
Few/JJ
people/NNS
in/IN
the/DT
advertising/NN
business/NN
have/VBP
raised/VBN
as/IN
many/JJ
hackles/NNS
as/IN
Alvin/NNP
A./NN
Achenbaum/NNP
./.
The/DT
general/JJ
public/NN
may/MD
not/RB
know/VB
his/PRP$
name/NN
,/,
but/CC
he/PRP
's/VBZ
famous/JJ
--/:
make/VB
that/DT
infamous/JJ
--/:
in/IN
advertising/NN
circles/NNS
:/:
A/DT
marketing/VBG
consultant/NN
,/,
he/PRP
pioneered/VBD
slashing/VBG
ad/NN
agency/NN
commissions/NNS
,/,
to/TO
the/DT
delight/NN
of/IN
advertising/NN
clients/NNS
and/CC
the/DT
dismay/NN
of/IN
agencies/NNS
./.
Now/RB
,/,
after/IN
beating/VBG
them/PRP
,/,
Mr./NNP
Achenbaum/NNP
is/VBZ
joining/VBG
them/PRP
./.
Backer/NNP
Spielvogel/NNP
Bates/NNP
Worldwide/NNP
named/VBD
Mr./NNP
Achenbaum/NNP
,/,
62/CD
,/,
vice/NN
chairman/NN
of/IN
professional/JJ
services/NNS
,/,
reporting/VBG
directly/RB
to/TO
Carl/NNP
Spielvogel/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
./.
He/PRP
joins/VBZ
Nov./NNP
13/CD
,/,
dissolving/VBG
his/PRP$
consulting/VBG
firm/NN
,/,
Canter/NNP
,/,
Achenbaum/NNP
Associates/NNPS
./.
In/IN
years/NNS
past/RB
,/,
the/DT
ad/NN
industry/NN
's/POS
most/RBS
distinguished/JJ
executives/NNS
did/VBD
n't/RB
hesitate/VB
to/TO
excorciate/VB
Mr./NNP
Achenbaum/NNP
./.
They/PRP
have/VBP
since/RB
mellowed/VBN
,/,
although/IN
one/CD
senior/JJ
Young/NNP
&/CC
Rubicam/NNP
executive/NN
,/,
echoing/VBG
others/NNS
,/,
said/VBD
:/:
``/``
I/PRP
think/VBP
ad/NN
agencies/NNS
owe/VBP
Carl/NNP
Spielvogel/NNP
a/DT
vote/NN
of/IN
thanks/NNS
for/IN
getting/VBG
him/PRP
out/IN
of/IN
the/DT
consulting/NN
business/NN
./.
''/''
But/CC
industry/NN
executives/NNS
also/RB
believe/VBP
hiring/VBG
Mr./NNP
Achenbaum/NNP
is/VBZ
a/DT
shrewd/JJ
move/NN
for/IN
Backer/NNP
Spielvogel/NNP
,/,
a/DT
unit/NN
of/IN
Saatchi/NNP
&/CC
Saatchi/NNP
./.
Mr./NNP
Achenbaum/NNP
has/VBZ
counted/VBN
among/IN
his/PRP$
clients/NNS
some/DT
of/IN
the/DT
most/RBS
visible/JJ
blue-chip/JJ
advertisers/NNS
in/IN
the/DT
country/NN
,/,
including/VBG
Nissan/NNP
,/,
Toyota/NNP
,/,
Seagram/NNP
and/CC
Backer/NNP
Spielvogel/NNP
clients/NNS
Hyundai/NNP
and/CC
J.P./NNP
Morgan/NNP
./.
At/IN
Backer/NNP
Spielvogel/NNP
,/,
he/PRP
will/MD
work/VB
with/IN
clients/NNS
and/CC
potential/JJ
clients/NNS
on/IN
marketing/NN
strategies/NNS
;/:
aside/RB
from/IN
agency/NN
compensation/NN
issues/NNS
,/,
he/PRP
helped/VBD
Nissan/NNP
,/,
for/IN
example/NN
,/,
come/VB
up/RB
with/IN
its/PRP$
positioning/NN
and/CC
pricing/NN
for/IN
its/PRP$
new/JJ
Infiniti/NNP
line/NN
./.
His/PRP$
client/NN
contacts/NNS
,/,
meanwhile/RB
,/,
could/MD
prove/VB
a/DT
gold/NN
mine/NN
for/IN
an/DT
agency/NN
that/WDT
has/VBZ
had/VBN
few/JJ
new/JJ
business/NN
wins/NNS
of/IN
late/RB
./.
``/``
I/PRP
've/VBP
done/VBN
over/IN
40/CD
ad/NN
agency/NN
searches/NNS
clients/NNS
I/PRP
have/VBP
a/DT
pretty/RB
good/JJ
notion/NN
of/IN
what/WP
clients/NNS
are/VBP
interested/JJ
in/IN
when/WRB
they/PRP
look/VBP
for/IN
an/DT
agency/NN
,/,
''/''
Mr./NNP
Achenbaum/NNP
said/VBD
./.
As/IN
a/DT
consultant/NN
,/,
he/PRP
has/VBZ
given/VBN
seminars/NNS
at/IN
agencies/NNS
including/VBG
Ogilvy/NNP
&/CC
Mather/NNP
on/IN
how/WRB
to/TO
win/VB
new/JJ
business/NN
./.
Mr./NNP
Spielvogel/NNP
said/VBD
he/PRP
hopes/VBZ
Mr./NNP
Achenbaum/NNP
will/MD
do/VB
some/DT
strategic/JJ
consulting/NN
at/IN
the/DT
agency/NN
for/IN
``/``
non-clients/NNS
,/,
in/IN
hopes/NNS
that/IN
they/PRP
become/VBP
clients/NNS
./.
''/''
At/IN
Backer/NNP
Spielvogel/NNP
,/,
Mr./NNP
Spielvogel/NNP
's/POS
hallmark/NN
has/VBZ
been/VBN
personal/JJ
involvement/NN
with/IN
all/DT
major/JJ
clients/NNS
./.
He/PRP
pampers/VBZ
them/PRP
;/:
he/PRP
invites/VBZ
them/PRP
to/TO
fabulous/JJ
parties/NNS
;/:
he/PRP
strokes/VBZ
them/PRP
./.
Mr./NNP
Achenbaum/NNP
,/,
too/RB
,/,
delves/VBZ
into/IN
his/PRP$
clients/NNS
'/POS
business/NN
./.
``/``
Carl/NNP
has/VBZ
a/DT
much/RB
higher/JJR
degree/NN
of/IN
intimacy/NN
with/IN
his/PRP$
clients/NNS
than/IN
is/VBZ
ordinary/JJ
for/IN
an/DT
agency/NN
his/PRP$
size/NN
./.
And/CC
with/IN
Al/NNP
's/POS
record/NN
of/IN
being/VBG
a/DT
delver/NN
and/CC
a/DT
detail/NN
guy/NN
,/,
you/PRP
can/MD
see/VB
how/WRB
the/DT
two/CD
fit/VBP
,/,
''/''
said/VBD
Alan/NNP
Gottesman/NNP
,/,
an/DT
analyst/NN
with/IN
PaineWebber/NNP
./.
Mr./NNP
Achenbaum/NNP
's/POS
move/NN
follows/VBZ
the/DT
announcement/NN
last/JJ
month/NN
that/IN
his/PRP$
consulting/VBG
partner/NN
,/,
Stanley/NNP
Canter/NNP
,/,
66/CD
,/,
would/MD
retire/VB
./.
When/WRB
the/DT
announcement/NN
came/VBD
out/RB
,/,
``/``
I/PRP
picked/VBD
up/RP
the/DT
phone/NN
and/CC
said/VBD
,/,
`/``
Why/WRB
do/VBP
n't/RB
you/PRP
come/VB
to/TO
us/PRP
?/.
'/''
''/''
Mr./NNP
Spielvogel/NNP
said/VBD
./.
Mr./NNP
Achenbaum/NNP
,/,
who/WP
had/VBD
been/VBN
considering/VBG
paring/VBG
down/RP
his/PRP$
firm/NN
or/CC
merging/VBG
it/PRP
with/IN
another/DT
small/JJ
consulting/NN
outfit/NN
,/,
soon/RB
agreed/VBD
./.
The/DT
two/CD
men/NNS
are/VBP
longtime/JJ
friends/NNS
and/CC
tennis/NN
partners/NNS
,/,
having/VBG
met/VBN
about/IN
25/CD
years/NNS
ago/RB
./.
Before/IN
becoming/VBG
a/DT
consultant/NN
in/IN
1974/CD
,/,
Mr./NNP
Achenbaum/NNP
was/VBD
a/DT
senior/JJ
executive/NN
at/IN
J./NNP
Walter/NNP
Thompson/NNP
Co/NNP
./.
He/PRP
spent/VBD
most/JJS
of/IN
his/PRP$
career/NN
formulating/VBG
marketing/NN
strategies/NNS
,/,
but/CC
became/VBD
best-known/JJS
for/IN
chipping/VBG
away/RB
at/IN
ad/NN
agency/NN
compensation/NN
./.
Ad/NN
agencies/NNS
typically/RB
earned/VBD
a/DT
straight/JJ
15/CD
%/NN
commission/NN
;/:
if/IN
a/DT
client/NN
spent/VBN
$/$
100/CD
million/CD
on/IN
TV/NN
time/NN
,/,
the/DT
agency/NN
made/VBD
$/$
15/CD
million/CD
./.
But/CC
Mr./NNP
Achenbaum/NNP
pioneered/VBD
negotiated/JJ
fees/NNS
,/,
which/WDT
often/RB
worked/VBD
out/RB
to/TO
less/JJR
than/IN
15/CD
%/NN
./.
More/RBR
recently/RB
,/,
he/PRP
negotiated/VBD
``/``
indemnification/NN
''/''
clauses/NNS
in/IN
which/WDT
an/DT
ad/NN
agency/NN
in/IN
some/DT
cases/NNS
must/MD
pay/VB
a/DT
client/NN
if/IN
it/PRP
drops/VBZ
the/DT
account/NN
./.
He/PRP
ultimately/RB
became/VBD
so/RB
well-known/JJ
for/IN
cutting/VBG
compensation/NN
,/,
however/RB
,/,
that/IN
clients/NNS
did/VBD
n't/RB
seek/VB
him/PRP
out/RP
for/IN
anything/NN
else/JJ
./.
``/``
I/PRP
was/VBD
very/RB
frustrated/JJ
,/,
''/''
he/PRP
said/VBD
./.
``/``
The/DT
fact/NN
of/IN
the/DT
matter/NN
is/VBZ
,/,
I/PRP
am/VBP
a/DT
marketer/NN
./.
That/DT
's/VBZ
another/DT
reason/NN
the/DT
Backer/NNP
Spielvogel/NNP
job/NN
It/PRP
struck/VBD
me/PRP
as/IN
a/DT
way/NN
to/TO
get/VB
back/RB
to/TO
what/WP
I/PRP
really/RB
want/VBP
to/TO
do/VB
./.
''/''
Mr./NNP
Spielvogel/NNP
added/VBD
pointedly/RB
:/:
``/``
The/DT
pressure/NN
on/IN
commissions/NNS
did/VBD
n't/RB
begin/VB
with/IN
Al/NNP
Achenbaum/NNP
./.
''/''
Mr./NNP
Spielvogel/NNP
said/VBD
Mr./NNP
Achenbaum/NNP
will/MD
work/VB
with/IN
clients/NNS
to/TO
determine/VB
the/DT
mix/NN
of/IN
promotion/NN
,/,
merchandising/NN
,/,
publicity/NN
and/CC
other/JJ
marketing/VBG
outlets/NNS
,/,
and/CC
to/TO
integrate/VB
those/DT
services/NNS
./.
He/PRP
will/MD
concentrate/VB
on/IN
,/,
among/IN
others/NNS
,/,
J.P./NNP
Morgan/NNP
and/CC
Hyundai/NNP
./.
Mr./NNP
Achenbaum/NNP
helped/VBD
Morgan/NNP
in/IN
its/PRP$
recent/JJ
agency/NN
search/NN
,/,
and/CC
he/PRP
has/VBZ
a/DT
long/JJ
relationship/NN
with/IN
Hyundai/NNP
,/,
which/WDT
is/VBZ
having/VBG
severe/JJ
troubles/NNS
,/,
including/VBG
declining/VBG
sales/NNS
./.
``/``
The/DT
trail/NN
of/IN
revenue/NN
is/VBZ
increasingly/RB
going/VBG
away/RB
from/IN
pure/JJ
advertising/NN
,/,
and/CC
going/VBG
towards/IN
other/JJ
services/NNS
,/,
''/''
Mr./NNP
Spielvogel/NNP
said/VBD
./.
Instead/RB
of/IN
being/VBG
just/RB
an/DT
ad/NN
agency/NN
,/,
he/PRP
said/VBD
:/:
``/``
We/PRP
have/VBP
redefined/VBD
our/PRP$
mission/NN
here/RB
./.
Our/PRP$
mission/NN
is/VBZ
to/TO
help/VB
our/PRP$
clients/NNS
grow/VB
,/,
and/CC
to/TO
use/VB
every/DT
tool/NN
of/IN
marketing/NN
communications/NNS
to/TO
accomplish/VB
that/DT
./.
''/''
Industry/NN
executives/NNS
are/VBP
wishing/VBG
Mr./NNP
Achenbaum/NNP
well/RB
./.
Leonard/NNP
Matthews/NNP
,/,
then-president/JJ
of/IN
the/DT
American/NNP
Association/NNP
of/IN
Advertising/NNP
Agencies/NNPS
,/,
called/VBD
Mr./NNP
Achenbaum/NNP
a/DT
``/``
quisling/NN
''/''
in/IN
an/DT
incendiary/JJ
1987/CD
speech/NN
./.
Yesterday/NN
,/,
Mr./NNP
Matthews/NNP
,/,
now/RB
a/DT
consultant/NN
with/IN
the/DT
Stamford/NNP
,/,
Conn./NNP
,/,
firm/NN
Matthews/NNP
&/CC
Johnston/NNP
,/,
quipped/VBD
,/,
``/``
I/PRP
think/VBP
he/PRP
'll/MD
be/VB
very/RB
good/JJ
at/IN
that/DT
new/JJ
job/NN
And/CC
much/RB
better/JJR
at/IN
that/DT
than/IN
at/IN
{/(
the/DT
price-cutting/NN
he/PRP
's/VBZ
been/VBN
doing/VBG
recently/RB
./.
''/''
Cotton/NNP
Inc/NNP
./.
Campaign/NN
Cotton/NNP
Inc./NNP
,/,
the/DT
fiber/NN
company/NN
that/WDT
represents/VBZ
cotton/NN
growers/NNS
,/,
will/MD
begin/VB
a/DT
new/JJ
ad/NN
campaign/NN
,/,
developed/VBN
by/IN
Ogilvy/NNP
&/CC
Mather/NNP
,/,
Thanksgiving/NNP
Day/NNP
./.
J./NNP
Nicholas/NNP
Hahn/NNP
,/,
Cotton/NNP
Inc./NNP
's/POS
president/NN
and/CC
chief/JJ
executive/NN
,/,
was/VBD
an/DT
outspoken/JJ
critic/NN
of/IN
WPP/NNP
Group/NNP
's/POS
acquisition/NN
of/IN
Ogilvy/NNP
Group/NNP
earlier/RBR
this/DT
year/NN
./.
During/IN
the/DT
takeover/NN
,/,
Mr./NNP
Hahn/NNP
said/VBD
he/PRP
would/MD
put/VB
his/PRP$
account/NN
up/RP
for/IN
review/NN
if/IN
WPP/NNP
's/POS
bid/NN
were/VBD
successful/JJ
,/,
but/CC
he/PRP
did/VBD
n't/RB
./.
Cotton/NNP
Inc./NNP
's/POS
new/JJ
$/$
9/CD
million/CD
campaign/NN
calls/VBZ
cotton/NN
the/DT
``/``
Fabric/NN
of/IN
Our/PRP$
Lives/NNS
./.
''/''
The/DT
campaign/NN
replaces/VBZ
its/PRP$
``/``
Take/VB
Comfort/NN
in/IN
Cotton/NN
''/''
ads/NNS
and/CC
marks/VBZ
the/DT
end/NN
of/IN
its/PRP$
national/JJ
cooperative/JJ
advertising/NN
efforts/NNS
./.
For/IN
years/NNS
,/,
the/DT
company/NN
's/POS
ads/NNS
were/VBD
tied/VBN
in/RB
with/IN
pitches/NNS
for/IN
Cannon/NNP
sheets/NNS
or/CC
Martex/NNP
towels/NNS
,/,
for/IN
example/NN
,/,
and/CC
an/DT
announcer/NN
at/IN
the/DT
end/NN
of/IN
the/DT
ads/NNS
would/MD
tell/VB
customers/NNS
where/WRB
to/TO
``/``
find/VB
the/DT
true/JJ
performance/NN
label/NN
./.
''/''
With/IN
the/DT
new/JJ
TV/NN
spots/NNS
,/,
Ogilvy/NNP
&/CC
Mather/NNP
has/VBZ
opted/VBN
for/IN
a/DT
family/NN
style/NN
with/IN
lots/NNS
of/IN
laughter/NN
,/,
hugs/NNS
and/CC
tears/NNS
./.
``/``
We/PRP
're/VBP
making/VBG
a/DT
fairly/RB
obvious/JJ
plea/NN
for/IN
some/DT
emotional/JJ
reaction/NN
,/,
''/''
says/VBZ
Tom/NNP
Rost/NNP
,/,
creative/JJ
director/NN
at/IN
Ogilvy/NNP
&/CC
Mather/NNP
./.
Cotton/NNP
Inc./NNP
will/MD
spend/VB
nearly/RB
$/$
2/CD
million/CD
on/IN
broadcasting/NN
on/IN
Thanksgiving/NNP
Day/NNP
alone/RB
,/,
advertising/VBG
on/IN
such/JJ
programs/NNS
as/IN
``/``
Good/JJ
Morning/NN
America/NNP
,/,
''/''
``/``
Macy/NNP
's/POS
Thanksgiving/NNP
Day/NNP
Parade/NNP
''/''
and/CC
the/DT
NFL/NNP
holiday/NN
game/NN
./.
Frank/NNP
Mingo/NNP
Dies/VBZ
at/IN
49/CD
Frank/NNP
L./NNP
Mingo/NNP
,/,
one/CD
of/IN
the/DT
pioneers/NNS
of/IN
advertising/NN
targeted/VBN
at/IN
black/JJ
audiences/NNS
,/,
died/VBD
at/IN
the/DT
age/NN
of/IN
49/CD
after/IN
a/DT
stroke/NN
./.
Mr./NNP
Mingo/NNP
was/VBD
chief/JJ
executive/NN
officer/NN
of/IN
the/DT
Mingo/NNP
Group/NNP
,/,
which/WDT
he/PRP
founded/VBD
in/IN
1977/CD
and/CC
which/WDT
created/VBD
ads/NNS
for/IN
the/DT
black/JJ
market/NN
./.
Clients/NNS
include/VBP
Miller/NNP
Brewing/NNP
Co./NNP
and/CC
General/NNP
Motors/NNPS
./.
Mr./NNP
Mingo/NNP
was/VBD
hospitalized/VBN
Sept./NNP
23/CD
and/CC
died/VBD
Monday/NNP
,/,
according/VBG
to/TO
Samuel/NNP
J./NNP
Chisholm/NNP
,/,
the/DT
agency/NN
's/POS
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
./.
Ad/NN
Notes/NNS
.../:
./.
EARNINGS/NNS
:/:
Omnicom/NNP
Group/NNP
Inc./NNP
,/,
New/NNP
York/NNP
,/,
reported/VBD
third-quarter/JJ
net/JJ
income/NN
rose/VBD
54/CD
%/NN
to/TO
$/$
5.6/CD
million/CD
,/,
or/CC
22/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
3.6/CD
million/CD
,/,
or/CC
15/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
./.
Revenue/NN
increased/VBD
20/CD
%/NN
to/TO
$/$
246.6/CD
million/CD
from/IN
$/$
204.8/CD
million/CD
./.
Prime/NNP
Minister/NNP
Lee/NNP
Kuan/NNP
Yew/NNP
,/,
Singapore/NNP
's/POS
leader/NN
and/CC
one/CD
of/IN
Asia/NNP
's/POS
leading/VBG
statesmen/NNS
for/IN
30/CD
years/NNS
,/,
recently/RB
announced/VBD
his/PRP$
intention/NN
to/TO
retire/VB
next/JJ
year/NN
--/:
though/IN
not/RB
necessarily/RB
to/TO
end/VB
his/PRP$
influence/NN
./.
The/DT
prime/JJ
minister/NN
,/,
whose/WP$
hair/NN
is/VBZ
thinning/VBG
and/CC
gray/JJ
and/CC
whose/WP$
face/NN
has/VBZ
a/DT
perpetual/JJ
pallor/NN
,/,
nonetheless/RB
continues/VBZ
to/TO
display/VB
an/DT
energy/NN
,/,
a/DT
precision/NN
of/IN
thought/NN
and/CC
a/DT
willingness/NN
to/TO
say/VB
publicly/RB
what/WP
most/JJS
other/JJ
Asian/JJ
leaders/NNS
dare/VBP
say/VB
only/RB
privately/RB
./.
The/DT
66-year-old/JJ
Mr./NNP
Lee/NNP
recently/RB
spent/VBD
an/DT
hour/NN
discussing/VBG
the/DT
state/NN
of/IN
Asia/NN
and/CC
the/DT
world/NN
with/IN
two/CD
Journal/NNP
reporters/NNS
in/IN
his/PRP$
plainly/RB
furnished/JJ
,/,
wood-paneled/JJ
office/NN
./.
The/DT
interview/NN
did/VBD
not/RB
touch/VB
on/IN
Singapore/NNP
's/POS
domestic/JJ
affairs/NNS
./.
Skipping/VBG
personal/JJ
pleasantries/NNS
,/,
Mr./NNP
Lee/NNP
picked/VBD
up/RB
exactly/RB
where/WRB
he/PRP
left/VBD
off/RB
several/JJ
months/NNS
earlier/RB
--/:
before/IN
the/DT
government/NN
crackdown/NN
in/IN
China/NNP
--/:
when/WRB
he/PRP
had/VBD
warned/VBN
that/IN
the/DT
orthodox/JJ
leadership/NN
in/IN
Beijing/NNP
feared/VBD
a/DT
plurality/NN
of/IN
views/NNS
./.
Excerpts/NNS
follow/VBP
:/:
On/IN
China/NNP
's/POS
turmoil/NN
:/:
``/``
It/PRP
is/VBZ
a/DT
very/RB
unhappy/JJ
scene/NN
,/,
''/''
he/PRP
said/VBD
./.
``/``
It/PRP
took/VBD
Zhao/NNP
Ziyang/NNP
former/JJ
premier/NN
and/CC
party/NN
chief/NN
10/CD
years/NNS
to/TO
build/VB
a/DT
team/NN
of/IN
economists/NNS
who/WP
understood/VBD
how/WRB
the/DT
Western/JJ
economies/NNS
work/VBP
and/CC
now/RB
that/DT
team/NN
is/VBZ
part/NN
in/IN
exile/NN
,/,
part/NN
being/VBG
rusticated/VBN
and/CC
part/NN
missing/VBG
./.
''/''
Rebuilding/VBG
that/DT
team/NN
,/,
Mr./NNP
Lee/NNP
predicted/VBD
,/,
will/MD
take/VB
another/DT
10/CD
years/NNS
./.
``/``
That/DT
's/VBZ
very/RB
sad/JJ
for/IN
China/NNP
and/CC
for/IN
Asia/NNP
because/IN
China/NNP
could/MD
have/VB
been/VBN
a/DT
good/JJ
engine/NN
for/IN
growth/NN
,/,
not/RB
just/RB
for/IN
Hong/NNP
Kong/NNP
and/CC
Taiwan/NNP
but/CC
for/IN
Japan/NNP
,/,
Korea/NNP
and/CC
the/DT
rest/NN
of/IN
Asia/NNP
./.
''/''
On/IN
similarities/NNS
between/IN
China/NNP
and/CC
the/DT
Soviet/NNP
Union/NNP
:/:
``/``
In/IN
important/JJ
particulars/NNS
,/,
the/DT
Soviets/NNPS
are/VBP
different/JJ
from/IN
the/DT
Chinese/NNPS
./.
They/PRP
are/VBP
already/RB
industrialized/JJ
.../:
./.
Their/PRP$
problem/NN
is/VBZ
one/CD
of/IN
inefficiency/NN
of/IN
an/DT
industrial/JJ
economy/NN
./.
The/DT
Chinese/JJ
problem/NN
is/VBZ
much/RB
greater/JJR
--/:
it/PRP
's/POS
how/WRB
to/TO
industrialize/VB
to/TO
begin/VB
with/RP
./.
''/''
Asked/VBN
if/IN
the/DT
Soviets/NNPS
,/,
like/IN
Chinese/JJ
officials/NNS
,/,
wo/MD
n't/RB
one/CD
day/NN
face/VB
a/DT
similar/JJ
conflict/NN
between/IN
the/DT
desire/NN
to/TO
liberalize/VB
economically/RB
and/CC
yet/RB
retain/VB
political/JJ
control/NN
,/,
Mr./NNP
Lee/NNP
said/VBD
,/,
``/``
I/PRP
would/MD
think/VB
that/IN
the/DT
Soviets/NNPS
face/VBP
a/DT
deeper/JJR
dilemma/NN
because/IN
they/PRP
have/VBP
been/VBN
more/RBR
in/IN
blinkers/NNS
than/IN
the/DT
Chinese/NNPS
--/:
I/PRP
mean/VBP
keeping/VBG
their/PRP$
people/NNS
cut/VBN
off/RB
from/IN
the/DT
outside/JJ
world/NN
./.
''/''
Mikhail/NNP
Gorbachev/NNP
,/,
he/PRP
said/VBD
,/,
is/VBZ
ahead/RB
of/IN
China/NNP
's/POS
leaders/NNS
in/IN
his/PRP$
awareness/NN
of/IN
the/DT
world/NN
./.
``/``
But/CC
I/PRP
think/VBP
the/DT
Soviet/JJ
peoples/NNS
are/VBP
more/RBR
introverted/JJ
than/IN
the/DT
Chinese/NNPS
./.
''/''
Regardless/RB
,/,
he/PRP
said/VBD
,/,
he/PRP
still/RB
believes/VBZ
the/DT
Soviet/NNP
Union/NNP
,/,
while/IN
falling/VBG
far/RB
short/RB
of/IN
the/DT
efficiency/NN
of/IN
a/DT
Western/JJ
economy/NN
,/,
may/MD
well/RB
manage/VB
to/TO
improve/VB
considerably/RB
./.
On/IN
Asia-Pacific/NNP
prosperity/NN
:/:
``/``
If/IN
America/NNP
can/MD
keep/VB
up/RP
the/DT
present/JJ
situation/NN
--/:
her/PRP$
markets/NNS
open/JJ
for/IN
another/DT
15/CD
years/NNS
,/,
with/IN
adjustments/NNS
,/,
and/CC
Japan/NNP
can/MD
grow/VB
and/CC
not/RB
cut/VB
back/RB
,/,
and/CC
so/RB
too/RB
,/,
Korea/NNP
,/,
Taiwan/NNP
,/,
Hong/NNP
Kong/NNP
,/,
Singapore/NNP
,/,
ASEAN/NNP
,/,
Australia/NNP
and/CC
New/NNP
Zealand/NNP
--/:
then/RB
in/IN
15/CD
years/NNS
,/,
the/DT
economies/NNS
of/IN
these/DT
countries/NNS
would/MD
be/VB
totally/RB
restructured/VBN
to/TO
be/VB
able/JJ
to/TO
almost/RB
sustain/VB
growth/NN
by/IN
themselves/PRP
./.
''/''
In/IN
such/JJ
an/DT
arrangement/NN
,/,
``/``
all/DT
benefit/VBP
,/,
''/''
he/PRP
said/VBD
./.
``/``
And/CC
if/IN
the/DT
Europeans/NNPS
come/VBN
in/RB
,/,
they/PRP
benefit/VBP
too/RB
./.
It/PRP
's/VBZ
not/RB
a/DT
zero-sum/JJ
game/NN
./.
''/''
Asked/VBN
about/IN
the/DT
possibility/NN
of/IN
greater/JJR
economic/JJ
cooperation/NN
among/IN
Asia-Pacific/NNP
nations/NNS
,/,
which/WDT
will/MD
be/VB
discussed/VBN
Nov./NNP
6/CD
and/CC
7/CD
at/IN
a/DT
ministerial/JJ
meeting/NN
in/IN
Canberra/NNP
,/,
Mr./NNP
Lee/NNP
said/VBD
the/DT
goal/NN
``/``
is/VBZ
to/TO
have/VB
a/DT
free/JJ
and/CC
open/JJ
world/NN
trading/VBG
system/NN
./.
''/''
An/DT
Asian/JJ
bloc/NN
is/VBZ
n't/RB
intended/JJ
,/,
he/PRP
said/VBD
./.
``/``
That/DT
's/VBZ
not/RB
possible/JJ
./.
''/''
On/IN
U.S.-Japan/JJ
relations/NNS
:/:
``/``
I/PRP
'm/VBP
encouraged/JJ
./.
I/PRP
think/VBP
the/DT
earlier/JJR
strident/JJ
notes/NNS
struck/VBN
by/IN
{/(
U.S./NNP
Commerce/NNP
Secretary/NNP
Robert/NNP
U.S./NNP
Trade/NNP
Representative/NNP
Carla/NNP
Hills/NNP
have/VBP
been/VBN
more/RBR
rounded/JJ
./.
I/PRP
believe/VBP
the/DT
U.S./NNP
is/VBZ
becoming/VBG
more/RBR
patient/JJ
and/CC
circumspect/JJ
,/,
''/''
he/PRP
said/VBD
./.
``/``
It/PRP
's/VBZ
the/DT
total/NN
relationship/NN
that/WDT
is/VBZ
important/JJ
./.
''/''
The/DT
total/NN
relationship/NN
,/,
as/IN
Mr./NNP
Lee/NNP
sees/VBZ
it/PRP
,/,
is/VBZ
``/``
the/DT
flow/NN
of/IN
dollars/NNS
to/TO
the/DT
U.S./NNP
to/TO
fund/VB
the/DT
deficits/NNS
,/,
the/DT
investments/NNS
the/DT
Japanese/NNPS
are/VBP
making/VBG
in/IN
the/DT
U.S./NNP
in/IN
order/NN
to/TO
satisfy/VB
American/JJ
demand/NN
that/IN
American/JJ
products/NNS
consumed/VBN
in/IN
America/NNP
should/MD
be/VB
made/VBN
as/RB
much/RB
as/IN
possible/JJ
in/IN
America/NNP
by/IN
Americans/NNPS
with/IN
Japanese/JJ
technology/NN
and/CC
capital/NN
./.
''/''
Japan/NNP
's/POS
recent/JJ
political/JJ
turbulence/NN
,/,
Mr./NNP
Lee/NNP
said/VBD
,/,
may/MD
mean/VB
Japan/NNP
will/MD
slow/VB
market/NN
adjustments/NNS
./.
``/``
They/PRP
'll/MD
be/VB
more/RBR
timorous/JJ
in/IN
tackling/VBG
their/PRP$
own/JJ
voters/NNS
,/,
like/IN
opening/VBG
up/RB
more/RBR
to/TO
agricultural/JJ
imports/NNS
from/IN
America/NNP
,/,
hurting/VBG
their/PRP$
farmers/NNS
./.
''/''
On/IN
U.S./NNP
military/JJ
presence/NN
in/IN
Asia/NNP
:/:
Asked/VBN
if/IN
his/PRP$
offer/NN
to/TO
allow/VB
the/DT
American/JJ
military/NN
to/TO
use/VB
facilities/NNS
in/IN
Singapore/NNP
would/MD
help/VB
preserve/VB
America/NNP
's/POS
presence/NN
in/IN
the/DT
region/NN
at/IN
bases/NNS
in/IN
the/DT
Philippines/NNPS
,/,
he/PRP
said/VBD
,/,
``/``
What/WP
we/PRP
have/VBP
done/VBN
is/VBZ
make/VB
it/PRP
easier/JJR
for/IN
the/DT
Philippines/NNPS
to/TO
continue/VB
to/TO
host/VB
American/JJ
bases/NNS
without/IN
it/PRP
being/VBG
said/VBN
they/PRP
are/VBP
lackeys/NNS
of/IN
the/DT
imperialists/NNS
and/CC
the/DT
only/JJ
ones/NNS
in/IN
Asia/NNP
or/CC
in/IN
Southeast/NNP
Asia/NNP
./.
We/PRP
are/VBP
willing/JJ
to/TO
share/VB
the/DT
political/JJ
burden/NN
of/IN
being/VBG
host/NN
to/TO
America/NNP
,/,
an/DT
imperial/JJ
power/NN
./.
We/PRP
think/VBP
it/PRP
is/VBZ
n't/RB
such/JJ
a/DT
great/JJ
burden/NN
,/,
that/IN
it/PRP
carries/VBZ
no/DT
stigma/NN
,/,
and/CC
we/PRP
are/VBP
prepared/JJ
to/TO
do/VB
it/PRP
./.
''/''
On/IN
U.S.-Philippine/JJ
relations/NNS
:/:
``/``
It/PRP
's/VBZ
such/JJ
a/DT
mixed-up/JJ
relationship/NN
going/VBG
back/RB
into/IN
history/NN
.../:
./.
I/PRP
really/RB
do/VBP
not/RB
understand/VB
how/WRB
it/PRP
is/VBZ
that/IN
Filipinos/NNPS
feel/VBP
so/RB
passionately/RB
involved/JJ
in/IN
this/DT
father/NN
figure/NN
that/WDT
they/PRP
want/VBP
to/TO
dispose/VB
of/IN
and/CC
yet/RB
they/PRP
need/VBP
./.
I/PRP
just/RB
do/VBP
n't/RB
understand/VB
it/PRP
./.
My/PRP$
relationships/NNS
with/IN
the/DT
British/NNPS
are/VBP
totally/RB
different/JJ
./.
They/PRP
lorded/VBD
it/PRP
over/IN
me/PRP
./.
They/PRP
did/VBD
me/PRP
some/DT
good/JJ
./.
They/PRP
did/VBD
themselves/PRP
even/RB
more/RBR
good/JJ
./.
They/PRP
let/VB
me/PRP
down/RP
when/WRB
the/DT
Japanese/NNPS
came/VBD
down/RB
{/(
during/IN
World/NNP
War/NNP
II/NNP
I/PRP
do/VBP
n't/RB
feel/VB
down/RB
or/CC
done/VBN
in/RB
because/IN
I/PRP
show/VBP
British/JJ
serials/NNS
on/IN
my/PRP$
television/NN
network/NN
or/CC
read/VBP
their/PRP$
books/NNS
./.
I/PRP
mean/VBP
it/PRP
is/VBZ
a/DT
normal/JJ
adult/NN
relationship/NN
./.
``/``
But/CC
the/DT
Filipinos/NNPS
and/CC
the/DT
Americans/NNPS
,/,
when/WRB
I/PRP
talk/VBP
to/TO
them/PRP
,/,
there/EX
's/VBZ
so/RB
much/JJ
passion/NN
about/IN
Filipino/JJ
manhood/NN
being/VBG
diminished/VBN
as/IN
a/DT
result/NN
of/IN
being/VBG
squatted/VBN
upon/IN
by/IN
the/DT
Americans/NNPS
and/CC
so/RB
on/RB
./.
The/DT
occasional/JJ
Englishman/NNP
tries/VBZ
to/TO
put/VB
on/RP
airs/NNS
but/CC
we/PRP
let/VBP
it/PRP
pass/VB
.../:
./.
It/PRP
's/VBZ
just/RB
comic/JJ
when/WRB
they/PRP
try/VBP
to/TO
pretend/VB
they/PRP
're/VBP
still/RB
the/DT
master/NN
race/NN
./.
''/''
Mr./NNP
Lee/NNP
added/VBD
that/IN
the/DT
Filipinos/NNPS
are/VBP
``/``
making/VBG
it/PRP
very/RB
difficult/JJ
''/''
for/IN
the/DT
U.S./NNP
military/JJ
presence/NN
to/TO
last/VB
beyond/IN
five/CD
or/CC
10/CD
years/NNS
./.
On/IN
military/JJ
alternatives/NNS
if/IN
the/DT
U.S./NNP
pulls/VBZ
back/RB
:/:
``/``
The/DT
Soviets/NNPS
already/RB
are/VBP
present/JJ
./.
I/PRP
suppose/VBP
sooner/RBR
or/CC
later/RBR
,/,
the/DT
Japanese/NNPS
would/MD
have/VB
to/TO
fill/VB
up/RP
a/DT
large/JJ
part/NN
of/IN
the/DT
gap/NN
on/IN
the/DT
naval/JJ
side/NN
./.
Maybe/RB
the/DT
Chinese/NNPS
,/,
maybe/RB
even/RB
the/DT
Indians/NNPS
./.
''/''
On/IN
economic/JJ
consequences/NNS
of/IN
a/DT
diminished/JJ
U.S./NNP
presence/NN
:/:
``/``
America/NNP
is/VBZ
the/DT
only/RB
major/JJ
power/NN
in/IN
recent/JJ
history/NN
that/WDT
has/VBZ
used/VBN
its/PRP$
military/JJ
might/NN
to/TO
sustain/VB
a/DT
system/NN
that/WDT
enables/VBZ
all/DT
participants/NNS
to/TO
equally/RB
benefit/VB
without/IN
her/PRP
as/IN
the/DT
provider/NN
of/IN
the/DT
security/NN
taking/VBG
royalties/NNS
./.
''/''
Asked/VBN
why/WRB
so/RB
few/JJ
nations/NNS
seem/VBP
to/TO
share/VB
his/PRP$
views/NNS
of/IN
America/NNP
,/,
he/PRP
said/VBD
,/,
``/``
Many/JJ
people/NNS
see/VBP
it/PRP
that/DT
way/NN
./.
But/CC
they/PRP
have/VBP
just/RB
taken/VBN
it/PRP
for/IN
granted/VBN
./.
''/''
On/IN
Cambodia/NNP
:/:
``/``
Let/VB
's/PRP
assume/VB
that/DT
former/JJ
Cambodian/JJ
leader/NN
Prince/NNP
Norodom/NNP
Sihanouk/NNP
does/VBZ
what/WP
the/DT
press/NN
wants/VBZ
him/PRP
to/TO
do/VB
and/CC
joins/VBZ
up/RB
with/IN
{/(
Vietnamese-backed/JJ
Cambodian/JJ
leader/NN
Hun/NNP
Sen/NNP
./.
Is/VBZ
the/DT
trouble/NN
over/RP
?/.
Can/MD
Sihanouk/NNP
and/CC
Hun/NNP
Sen/NNP
knock/VB
off/RP
the/DT
Khmer/NNP
Rouge/NNP
still/RB
supported/VBN
by/IN
China/NNP
?/.
He/PRP
ca/MD
n't/RB
./.
``/``
What/WP
is/VBZ
the/DT
way/NN
forward/RB
?/.
To/TO
get/VB
the/DT
Khmer/NNP
Rouge/NNP
as/IN
part/NN
of/IN
a/DT
process/NN
for/IN
elections/NNS
./.
And/CC
when/WRB
they/PRP
lose/VBP
,/,
then/RB
we/PRP
can/MD
expect/VB
China/NNP
to/TO
stop/VB
aid/NN
./.
Let/VB
's/PRP
put/VB
it/PRP
bluntly/RB
./.
The/DT
Chinese/NNPS
can/MD
not/RB
be/VB
seen/VBN
to/TO
have/VB
made/VBN
use/NN
of/IN
the/DT
Khmer/NNP
Rouge/NNP
and/CC
then/RB
discard/VB
them/PRP
./.
''/''
Ms./NNP
House/NNP
is/VBZ
vice/NN
president/NN
of/IN
Dow/NNP
Jones/NNP
International/NNP
Group/NNP
./.
Mr./NNP
Wain/NNP
is/VBZ
editor/NN
of/IN
The/DT
Asian/NNP
Wall/NNP
Street/NNP
Journal/NNP
./.
Everything/NN
looked/VBD
good/JJ
as/IN
neurosurgeon/NN
Walter/NNP
Levy/NNP
and/CC
colleagues/NNS
carefully/RB
cut/VB
away/RB
a/DT
woman/NN
's/POS
spinal/JJ
tumor/NN
at/IN
the/DT
Cleveland/NNP
Clinic/NNP
in/IN
1978/CD
./.
Using/VBG
small/JJ
electrical/JJ
shocks/NNS
applied/VBN
to/TO
her/PRP$
feet/NNS
,/,
they/PRP
were/VBD
able/JJ
to/TO
monitor/VB
sensory/JJ
nerves/NNS
./.
The/DT
shocks/NNS
generated/VBD
nerve/NN
impulses/NNS
that/WDT
traveled/VBD
via/IN
spine/NN
to/TO
brain/NN
and/CC
showed/VBD
up/RB
clearly/RB
on/IN
a/DT
brain-wave/JJ
monitor/NN
,/,
indicating/VBG
no/DT
damage/NN
to/TO
the/DT
delicate/JJ
spinal/JJ
tissue/NN
./.
Then/RB
,/,
says/VBZ
Dr./NNP
Levy/NNP
,/,
``/``
she/PRP
woke/VBD
up/RB
paralyzed/JJ
./.
''/''
The/DT
damage/NN
was/VBD
to/TO
her/PRP$
motor/NN
nerves/NNS
,/,
which/WDT
could/MD
n't/RB
be/VB
monitored/VBN
along/IN
with/IN
the/DT
sensory/JJ
nerves/NNS
,/,
he/PRP
explains/VBZ
./.
The/DT
tragedy/NN
,/,
he/PRP
adds/VBZ
,/,
``/``
galvanized/VBD
me/PRP
''/''
to/TO
look/VB
for/IN
a/DT
way/NN
to/TO
prevent/VB
similar/JJ
cases/NNS
./.
Dr./NNP
Levy/NNP
's/POS
answer/NN
may/MD
come/VB
with/IN
a/DT
new/JJ
kind/NN
of/IN
magnetic/JJ
brain/NN
probe/NN
,/,
a/DT
device/NN
that/IN
he/PRP
and/CC
dozens/NNS
of/IN
U.S./NNP
researchers/NNS
are/VBP
studying/VBG
with/IN
great/JJ
hope/NN
./.
Besides/IN
holding/VBG
the/DT
promise/NN
of/IN
safer/JJR
spinal/NN
surgery/NN
,/,
the/DT
probe/NN
could/MD
improve/VB
the/DT
diagnosis/NN
of/IN
brain/NN
and/CC
nerve/NN
disorders/NNS
such/JJ
as/IN
strokes/NNS
and/CC
multiple/JJ
sclerosis/NN
./.
Perhaps/RB
most/RBS
exciting/JJ
,/,
the/DT
device/NN
is/VBZ
thrusting/VBG
open/RP
a/DT
window/NN
to/TO
the/DT
workings/NNS
of/IN
the/DT
brain/NN
./.
The/DT
probe/NN
,/,
which/WDT
is/VBZ
painless/JJ
,/,
non-invasive/JJ
and/CC
apparently/RB
harmless/JJ
,/,
employs/VBZ
strong/JJ
magnetic/JJ
fields/NNS
to/TO
induce/VB
small/JJ
whirlwinds/NNS
of/IN
electricity/NN
within/IN
the/DT
brain/NN
./.
If/IN
positioned/VBN
over/IN
the/DT
brain/NN
's/POS
motor-control/JJ
area/NN
,/,
the/DT
hand-held/JJ
electromagnets/NNS
generate/VBP
nerve/NN
impulses/NNS
that/WDT
zip/VBP
down/IN
motor/NN
nerves/NNS
and/CC
activate/VBP
muscles/NNS
,/,
making/VBG
,/,
say/VB
,/,
a/DT
finger/NN
twitch/VB
./.
In/IN
principle/NN
,/,
they/PRP
will/MD
enable/VB
doctors/NNS
to/TO
check/VB
the/DT
body/NN
's/POS
motor/NN
system/NN
the/DT
way/NN
an/DT
electrician/NN
tests/VBZ
a/DT
home/NN
's/POS
electrical/JJ
circuits/NNS
by/IN
running/VBG
current/NN
through/IN
them/PRP
./.
``/``
Until/IN
now/RB
,/,
we/PRP
've/VBP
had/VBN
no/DT
objective/JJ
way/NN
of/IN
measuring/VBG
motor/NN
function/NN
,/,
''/''
says/VBZ
Keith/NNP
Chiappa/NNP
,/,
a/DT
neurologist/NN
conducting/VBG
clinical/JJ
tests/NNS
with/IN
the/DT
devices/NNS
at/IN
Boston/NNP
's/POS
Massachusetts/NNP
General/NNP
Hospital/NNP
./.
``/``
All/DT
we/PRP
could/MD
do/VB
was/VBD
tell/VB
a/DT
patient/NN
,/,
`/``
squeeze/VB
my/PRP$
fingers/NNS
as/RB
hard/RB
as/IN
you/PRP
can/MD
'/''
or/CC
`/``
raise/VB
your/PRP$
arm/NN
./.
'/''
``/``
Under/IN
the/DT
best/JJS
circumstances/NNS
such/JJ
tests/NNS
are/VBP
subjective/JJ
;/:
when/WRB
a/DT
patient/NN
is/VBZ
unconscious/JJ
,/,
they/PRP
do/VBP
n't/RB
work/VB
at/IN
all/DT
./.
Magnetic/JJ
brain/NN
tweaking/NN
started/VBD
in/IN
the/DT
early/JJ
1900s/NNS
,/,
when/WRB
researchers/NNS
produced/VBD
flashes/NNS
of/IN
light/NN
in/IN
the/DT
visual/JJ
field/NN
with/IN
magnets/NNS
./.
In/IN
the/DT
1960s/NNS
,/,
Mayo/NNP
Clinic/NNP
researchers/NNS
developed/VBD
magnetic/JJ
devices/NNS
to/TO
stimulate/VB
motor/NN
nerves/NNS
in/IN
the/DT
hand/NN
and/CC
other/JJ
limbs/NNS
./.
But/CC
for/IN
brain/NN
tests/NNS
,/,
the/DT
unwieldy/JJ
machines/NNS
``/``
would/MD
have/VB
required/VBN
patients/NNS
to/TO
stand/VB
on/IN
their/PRP$
heads/NNS
,/,
''/''
says/VBZ
Reginald/NNP
Bickford/NNP
,/,
a/DT
researcher/NN
at/IN
the/DT
University/NNP
of/IN
California/NNP
at/IN
San/NNP
Diego/NNP
./.
The/DT
field/NN
took/VBD
off/RB
in/IN
1985/CD
after/IN
scientists/NNS
at/IN
Britain/NNP
's/POS
Sheffield/NNP
University/NNP
developed/VBD
a/DT
handy/JJ
,/,
compact/JJ
magnet/NN
for/IN
brain/NN
stimulation/NN
./.
Since/IN
then/RB
,/,
at/IN
least/JJS
two/CD
commercial/JJ
versions/NNS
have/VBP
been/VBN
put/VBN
on/IN
the/DT
U.S./NNP
market/NN
,/,
and/CC
an/DT
estimated/VBN
500/CD
have/VBP
been/VBN
sold/VBN
./.
In/IN
August/NNP
,/,
a/DT
Chicago/NNP
conference/NN
on/IN
such/JJ
devices/NNS
attracted/VBD
more/JJR
than/IN
100/CD
researchers/NNS
,/,
who/WP
reported/VBD
studies/NNS
on/IN
everything/NN
from/IN
brain/NN
mapping/NN
to/TO
physical/JJ
therapy/NN
./.
``/``
We/PRP
do/VBP
n't/RB
feel/VB
we/PRP
can/MD
use/VB
{/(
the/DT
devices/NNS
surgery/NN
yet/RB
,/,
but/CC
we/PRP
're/VBP
getting/VBG
close/JJ
,/,
''/''
says/VBZ
Dr./NNP
Levy/NNP
,/,
who/WP
is/VBZ
now/RB
with/IN
the/DT
University/NNP
of/IN
Pittsburgh/NNP
./.
A/DT
problem/NN
,/,
he/PRP
adds/VBZ
,/,
is/VBZ
that/IN
anesthetized/JJ
brains/NNS
are/VBP
more/RBR
resistant/JJ
to/TO
magnetic/JJ
stimulation/NN
than/IN
awake/JJ
ones/NNS
./.
The/DT
devices/NNS
could/MD
help/VB
indicate/VB
when/WRB
surgery/NN
would/MD
help/VB
,/,
says/VBZ
Charles/NNP
Tator/NNP
,/,
a/DT
University/NNP
of/IN
Toronto/NNP
neurosurgeon/NN
./.
For/IN
example/NN
,/,
paralyzed/JJ
car-crash/JJ
victims/NNS
occasionally/RB
have/VBP
some/DT
intact/JJ
spinal/JJ
tissues/NNS
that/WDT
,/,
if/IN
preserved/VBN
by/IN
emergency/NN
surgery/NN
,/,
enable/VBP
partial/JJ
recovery/NN
./.
But/CC
such/JJ
operations/NNS
typically/RB
are/VBP
n't/RB
performed/VBN
because/IN
there/EX
is/VBZ
no/DT
sign/NN
right/RB
after/IN
an/DT
injury/NN
that/DT
surgery/NN
would/MD
be/VB
beneficial/JJ
./.
``/``
The/DT
cost/NN
magnetic/JJ
stimulators/NNS
peanuts/NNS
if/IN
we/PRP
could/MD
retrieve/VB
limb/NN
function/NN
''/''
in/IN
such/JJ
people/NNS
,/,
Dr./NNP
Tator/NNP
says/VBZ
./.
Scientists/NNS
caution/VBP
there/EX
is/VBZ
a/DT
chance/NN
the/DT
magnet/NN
technique/NN
might/MD
spark/VB
seizures/NNS
in/IN
epileptics/NNS
./.
But/CC
no/DT
significant/JJ
problems/NNS
have/VBP
been/VBN
reported/VBN
among/IN
hundreds/NNS
of/IN
people/NNS
tested/VBN
with/IN
the/DT
devices/NNS
./.
The/DT
main/JJ
sensation/NN
,/,
besides/IN
feeling/NN
like/IN
a/DT
puppet/NN
jerked/VBN
with/IN
invisible/JJ
strings/NNS
,/,
is/VBZ
``/``
like/IN
a/DT
rap/NN
on/IN
the/DT
head/NN
,/,
''/''
says/VBZ
Sam/NNP
Bridgers/NNP
,/,
a/DT
neurologist/NN
who/WP
has/VBZ
studied/VBN
the/DT
brain/NN
stimulators/NNS
at/IN
Yale/NNP
University/NNP
./.
One/CD
apparent/JJ
side/NN
effect/NN
is/VBZ
a/DT
minor/JJ
increase/NN
in/IN
a/DT
brain/NN
hormone/NN
./.
And/CC
some/DT
doctors/NNS
who/WP
have/VBP
conducted/VBN
hours/NNS
of/IN
tests/NNS
on/IN
themselves/PRP
report/VBP
temporary/JJ
headaches/NNS
./.
At/IN
least/JJS
two/CD
companies/NNS
,/,
Cadwell/NNP
Laboratories/NNPS
Inc./NNP
of/IN
Kennewick/NNP
,/,
Wash./NNP
,/,
and/CC
Novametrix/NNP
Medical/NNP
Systems/NNPS
Inc./NNP
of/IN
Wallingford/NNP
,/,
Conn./NNP
,/,
now/RB
sell/VBP
versions/NNS
of/IN
the/DT
magnetic/JJ
devices/NNS
./.
The/DT
machines/NNS
,/,
which/WDT
at/IN
$/$
12,500/CD
are/VBP
inexpensive/JJ
by/IN
medical/JJ
standards/NNS
,/,
have/VBP
n't/RB
been/VBN
approved/VBN
in/IN
the/DT
U.S./NNP
for/IN
marketing/NN
as/IN
brain/NN
stimulators/NNS
but/CC
are/VBP
sold/VBN
for/IN
stimulating/JJ
nerves/NNS
in/IN
the/DT
hand/NN
,/,
legs/NNS
and/CC
other/JJ
non-brain/JJ
areas/NNS
./.
Researchers/NNS
can/MD
apply/VB
for/IN
permission/NN
to/TO
use/VB
the/DT
probes/NNS
for/IN
brain/NN
studies/NNS
./.
At/IN
the/DT
University/NNP
of/IN
Kentucky/NNP
,/,
a/DT
team/NN
led/VBN
by/IN
Dean/NNP
Currier/NNP
,/,
a/DT
physical/JJ
therapy/NN
researcher/NN
,/,
is/VBZ
testing/VBG
the/DT
stimulators/NNS
in/IN
conjunction/NN
with/IN
electric/JJ
shocks/NNS
to/TO
induce/VB
muscle/NN
contractions/NNS
to/TO
help/VB
prevent/VB
wasting/NN
of/IN
thigh/NN
muscles/NNS
after/IN
knee/NN
surgery/NN
./.
Similarly/RB
,/,
a/DT
Purdue/NNP
University/NNP
team/NN
led/VBN
by/IN
heart/NN
researcher/NN
W.A./NNP
Tacker/NNP
hopes/VBZ
to/TO
develop/VB
ways/NNS
to/TO
magnetically/RB
induce/VB
cardiac/JJ
muscle/NN
contractions/NNS
./.
The/DT
devices/NNS
might/MD
someday/RB
serve/VB
as/IN
temporary/JJ
pacemakers/NNS
or/CC
restarters/NNS
for/IN
stopped/VBN
hearts/NNS
,/,
says/VBZ
Dr./NNP
Tacker/NNP
,/,
whose/WP$
prototype/NN
was/VBD
dubbed/VBN
the/DT
``/``
Tacker/NNP
whacker/NN
./.
''/''
The/DT
devices/NNS
'/POS
most/RBS
remarkable/JJ
possibilities/NNS
,/,
though/RB
,/,
involve/VBP
the/DT
brain/NN
./.
Probing/VBG
with/IN
the/DT
stimulators/NNS
,/,
National/NNP
Institutes/NNPS
of/IN
Health/NNP
scientists/NNS
recently/RB
showed/VBD
how/WRB
the/DT
brain/NN
reorganizes/VBZ
motor-control/JJ
resources/NNS
after/IN
an/DT
amputation/NN
./.
Similar/JJ
studies/NNS
are/VBP
expected/VBN
to/TO
reveal/VB
how/WRB
stroke/NN
patients/NNS
'/POS
brains/NNS
regroup/VBP
--/:
a/DT
first/JJ
step/NN
toward/IN
finding/VBG
ways/NNS
to/TO
bolster/VB
that/DT
process/NN
and/CC
speed/NN
rehabilitation/NN
./.
Scientists/NNS
also/RB
are/VBP
exploring/VBG
memory/NN
and/CC
perception/NN
with/IN
the/DT
new/JJ
machines/NNS
./.
At/IN
the/DT
State/NNP
University/NNP
of/IN
New/NNP
York/NNP
at/IN
Brooklyn/NNP
,/,
researchers/NNS
flash/VBP
two/CD
groups/NNS
of/IN
different/JJ
letters/NNS
on/IN
a/DT
computer/NN
screen/NN
in/IN
front/NN
of/IN
human/JJ
guinea/NN
pigs/NNS
./.
Between/IN
flashes/NNS
,/,
certain/JJ
areas/NNS
in/IN
subjects/NNS
'/POS
brains/NNS
are/VBP
jolted/VBN
with/IN
a/DT
magnetic/JJ
stimulator/NN
./.
When/WRB
the/DT
jolt/NN
is/VBZ
timed/VBN
just/RB
right/RB
,/,
the/DT
subjects/NNS
do/VBP
n't/RB
recall/VB
seeing/VBG
the/DT
first/JJ
group/NN
of/IN
letters/NNS
./.
``/``
Where/WRB
does/VBZ
that/IN
first/JJ
stimulus/NN
go/VB
?/.
''/''
exclaims/VBZ
SUNY/NNP
neurologist/NN
Paul/NNP
Maccabee/NNP
./.
``/``
Trying/VBG
to/TO
answer/VB
that/DT
is/VBZ
suggesting/VBG
all/DT
kinds/NNS
of/IN
theories/NNS
,/,
''/''
such/JJ
as/IN
precisely/RB
where/WRB
and/CC
how/WRB
the/DT
brain/NN
processes/VBZ
incoming/JJ
signals/NNS
from/IN
the/DT
eyes/NNS
./.
He/PRP
and/CC
others/NNS
say/VBP
that/IN
the/DT
machines/NNS
are/VBP
weak/JJ
enough/RB
that/IN
they/PRP
do/VBP
n't/RB
jeopardize/VB
the/DT
memory/NN
./.
Both/DT
the/DT
SUNY/NNP
team/NN
and/CC
researchers/NNS
at/IN
the/DT
National/NNP
Magnet/NNP
Laboratory/NNP
in/IN
Cambridge/NNP
,/,
Mass./NNP
,/,
are/VBP
working/VBG
with/IN
more/RBR
potent/JJ
magnetic/JJ
brain/NN
stimulators/NNS
./.
Among/IN
other/JJ
things/NNS
,/,
the/DT
stronger/JJR
devices/NNS
may/MD
be/VB
able/JJ
to/TO
summon/VB
forth/RB
half-forgotten/JJ
memories/NNS
and/CC
induce/VB
mood/NN
changes/NNS
,/,
neurologists/NNS
say/VBP
./.
Du/NNP
Pont/NNP
Co./NNP
,/,
Hewlett-Packard/NNP
Co./NNP
and/CC
Los/NNP
Alamos/NNP
National/NNP
Laboratory/NNP
said/VBD
they/PRP
signed/VBD
a/DT
three-year/JJ
,/,
$/$
11/CD
million/CD
agreement/NN
to/TO
collaborate/VB
on/IN
superconductor/NN
research/NN
./.
The/DT
collaboration/NN
will/MD
include/VB
at/IN
least/JJS
25/CD
researchers/NNS
and/CC
will/MD
be/VB
aimed/VBN
primarily/RB
at/IN
developing/VBG
thin/JJ
films/NNS
of/IN
high-temperature/JJ
superconductors/NNS
for/IN
use/NN
in/IN
electronics/NNS
,/,
the/DT
companies/NNS
said/VBD
./.
The/DT
materials/NNS
,/,
discovered/VBN
during/IN
the/DT
past/JJ
three/CD
years/NNS
,/,
conduct/VBP
electricity/NN
without/IN
resistance/NN
and/CC
promise/VBP
smaller/JJR
,/,
faster/JJR
computers/NNS
and/CC
other/JJ
new/JJ
technologies/NNS
./.
Joint-research/JJ
programs/NNS
have/VBP
proliferated/VBN
as/IN
U.S./NNP
companies/NNS
seek/VBP
to/TO
spread/VB
the/DT
risks/NNS
and/CC
costs/NNS
of/IN
commercializing/VBG
new/JJ
superconductors/NNS
and/CC
to/TO
meet/VB
the/DT
challenges/NNS
posed/VBN
by/IN
foreign/JJ
consortia/NN
,/,
especially/RB
in/IN
Japan/NNP
./.
The/DT
latest/JJS
research/NN
pact/NN
bolsters/VBZ
Du/NNP
Pont/NNP
's/POS
growing/VBG
portfolio/NN
of/IN
investments/NNS
in/IN
superconductors/NNS
./.
The/DT
Wilmington/NNP
,/,
Del./NNP
,/,
chemicals/NNS
concern/NN
previously/RB
signed/VBD
research/NN
superconductor/NN
agreements/NNS
with/IN
Oak/NNP
Ridge/NNP
National/NNP
Laboratory/NNP
and/CC
with/IN
Argonne/NNP
National/NNP
Laboratory/NNP
./.
Last/JJ
year/NN
,/,
Du/NNP
Pont/NNP
agreed/VBD
to/TO
pay/VB
$/$
4.5/CD
million/CD
for/IN
rights/NNS
to/TO
superconductor/NN
work/NN
at/IN
the/DT
University/NNP
of/IN
Houston/NNP
./.
Hewlett-Packard/NNP
is/VBZ
a/DT
Palo/NNP
Alto/NNP
,/,
Calif./NNP
,/,
computer/NN
maker/NN
./.
The/DT
Los/NNP
Alamos/NNP
laboratory/NN
is/VBZ
one/CD
of/IN
three/CD
U.S./NNP
Department/NNP
of/IN
Energy/NNP
national/JJ
laboratories/NNS
designed/VBN
as/IN
pilot/NN
centers/NNS
to/TO
foster/VB
joint/JJ
industry-government/JJ
programs/NNS
to/TO
speed/VB
the/DT
transfer/NN
of/IN
new/JJ
superconductors/NNS
to/TO
the/DT
marketplace/NN
./.
J.C./NNP
PENNEY/NNP
Co./NNP
,/,
Dallas/NNP
,/,
said/VBD
it/PRP
issued/VBD
$/$
350/CD
million/CD
of/IN
securities/NNS
backed/VBN
by/IN
credit-card/NN
receivables/NN
./.
The/DT
offering/NN
was/VBD
priced/VBN
with/IN
an/DT
8.95/CD
%/NN
coupon/NN
rate/NN
at/IN
99.1875/CD
%/NN
to/TO
yield/VB
9.19/CD
%/NN
./.
The/DT
retailer/NN
said/VBD
the/DT
securities/NNS
are/VBP
expected/VBN
to/TO
be/VB
rated/VBN
triple-A/JJ
by/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NNP
and/CC
Aaa/JJ
by/IN
Moody/NNP
's/POS
Investors/NNPS
Service/NNP
Inc/NNP
./.
They/PRP
pay/VBP
interest/NN
only/RB
for/IN
115/CD
months/NNS
,/,
with/IN
principal/JJ
payments/NNS
beginning/VBG
thereafter/RB
./.
The/DT
expected/JJ
average/JJ
life/NN
of/IN
the/DT
certificates/NNS
is/VBZ
10/CD
years/NNS
,/,
with/IN
the/DT
final/JJ
scheduled/JJ
payment/NN
in/IN
October/NNP
,/,
2001/CD
./.
First/NNP
Boston/NNP
Corp./NNP
is/VBZ
sole/JJ
underwriter/NN
./.
As/IN
part/NN
of/IN
the/DT
transaction/NN
,/,
J.C./NNP
Penney/NNP
will/MD
sell/VB
a/DT
portion/NN
of/IN
its/PRP$
credit-card/NN
receivables/NN
to/TO
its/PRP$
JCP/NNP
Receivables/NNPS
Inc./NNP
unit/NN
,/,
which/WDT
will/MD
then/RB
transfer/VB
them/PRP
to/TO
a/DT
master/NN
trust/NN
./.
The/DT
trust/NN
will/MD
issue/VB
the/DT
certificates/NNS
./.
Credit/NN
support/NN
will/MD
be/VB
provided/VBN
by/IN
a/DT
letter/NN
of/IN
credit/NN
facility/NN
from/IN
Credit/NNP
Suisse/NNP
in/IN
favor/NN
of/IN
the/DT
trustee/NN
,/,
Fuji/NNP
Bank/NNP
&/CC
Trust/NNP
Co./NNP
,/,
for/IN
the/DT
benefit/NN
of/IN
the/DT
certificate/NN
holders/NNS
./.
J.C./NNP
Penney/NNP
will/MD
continue/VB
to/TO
service/VB
the/DT
receivables/NN
./.
Battle-tested/JJ
Japanese/JJ
industrial/JJ
managers/NNS
here/RB
always/RB
buck/VBP
up/RP
nervous/JJ
newcomers/NNS
with/IN
the/DT
tale/NN
of/IN
the/DT
first/JJ
of/IN
their/PRP$
countrymen/NNS
to/TO
visit/VB
Mexico/NNP
,/,
a/DT
boatload/NN
of/IN
samurai/FW
warriors/NNS
blown/VBN
ashore/RB
375/CD
years/NNS
ago/RB
./.
``/``
From/IN
the/DT
beginning/NN
,/,
it/PRP
took/VBD
a/DT
man/NN
with/IN
extraordinary/JJ
qualities/NNS
to/TO
succeed/VB
in/IN
Mexico/NNP
,/,
''/''
says/VBZ
Kimihide/NNP
Takimura/NNP
,/,
president/NN
of/IN
Mitsui/NNP
group/NN
's/POS
Kensetsu/NNP
Engineering/NNP
Inc./NNP
unit/NN
./.
Here/RB
in/IN
this/DT
new/JJ
center/NN
for/IN
Japanese/JJ
assembly/NN
plants/NNS
just/RB
across/IN
the/DT
border/NN
from/IN
San/NNP
Diego/NNP
,/,
turnover/NN
is/VBZ
dizzying/JJ
,/,
infrastructure/NN
shoddy/JJ
,/,
bureaucracy/NN
intense/JJ
./.
Even/RB
after-hours/NNS
drag/VBP
;/:
``/``
karaoke/FW
''/''
bars/NNS
,/,
where/WRB
Japanese/JJ
revelers/NNS
sing/VBP
over/IN
recorded/JJ
music/NN
,/,
are/VBP
prohibited/VBN
by/IN
Mexico/NNP
's/POS
powerful/JJ
musicians/NNS
union/NN
./.
Still/RB
,/,
20/CD
Japanese/JJ
companies/NNS
,/,
including/VBG
giants/NNS
such/JJ
as/IN
Sanyo/NNP
Industries/NNP
Corp./NNP
,/,
Matsushita/NNP
Electronics/NNP
Components/NNP
Corp./NNP
and/CC
Sony/NNP
Corp./NNP
have/VBP
set/VBN
up/RP
shop/NN
in/IN
the/DT
state/NN
of/IN
Northern/NNP
Baja/NNP
California/NNP
./.
Keeping/VBG
the/DT
Japanese/NNPS
happy/JJ
will/MD
be/VB
one/CD
of/IN
the/DT
most/RBS
important/JJ
tasks/NNS
facing/VBG
conservative/JJ
leader/NN
Ernesto/NNP
Ruffo/NNP
when/WRB
he/PRP
takes/VBZ
office/NN
Nov./NNP
1/CD
,/,
as/IN
the/DT
first/JJ
opposition/NN
governor/NN
in/IN
Mexico/NNP
's/POS
modern/JJ
history/NN
./.
Mexico/NNP
,/,
with/IN
its/PRP$
desperate/JJ
need/NN
for/IN
investment/NN
,/,
and/CC
Japan/NNP
,/,
with/IN
its/PRP$
huge/JJ
budget/NN
surplus/NN
,/,
would/MD
seem/VB
like/IN
a/DT
perfect/JJ
match/NN
./.
But/CC
the/DT
two/CD
countries/NNS
remain/VBP
separated/JJ
by/IN
a/DT
cultural/JJ
barrier/NN
wider/JJR
than/IN
the/DT
ocean/NN
./.
Conservative/JJ
Japanese/JJ
investors/NNS
are/VBP
put/VBN
off/RP
by/IN
what/WP
they/PRP
consider/VBP
Mexico/NNP
's/POS
restrictive/JJ
investment/NN
regulations/NNS
and/CC
loose/JJ
work/NN
habits/NNS
./.
From/IN
the/DT
Mexicans/NNPS
'/POS
viewpoint/NN
,/,
vaunted/JJ
tactics/NNS
of/IN
methodical/JJ
Japanese/JJ
managers/NNS
do/VBP
n't/RB
count/VB
for/IN
much/JJ
in/IN
a/DT
land/NN
where/WRB
a/DT
saying/NN
says/VBZ
``/``
there/EX
are/VBP
no/DT
fixed/JJ
rules/NNS
./.
''/''
Japan/NNP
ranks/VBZ
as/IN
only/RB
the/DT
fourth/JJ
largest/JJS
foreign/JJ
investor/NN
in/IN
Mexico/NNP
,/,
with/IN
5/CD
%/NN
of/IN
the/DT
total/JJ
investments/NNS
./.
That/DT
is/VBZ
just/RB
1/CD
%/NN
of/IN
all/PDT
the/DT
money/NN
Japan/NNP
has/VBZ
invested/VBN
abroad/RB
./.
Mexican/NNP
President/NNP
Carlos/NNP
Salinas/NNP
de/NNP
Gortari/NNP
would/MD
like/VB
to/TO
change/VB
that/DT
./.
The/DT
young/JJ
president/NN
so/RB
admires/VBZ
Japanese/JJ
discipline/NN
that/IN
he/PRP
sends/VBZ
his/PRP$
children/NNS
to/TO
a/DT
Japanese/JJ
school/NN
in/IN
Mexico/NNP
City/NNP
./.
He/PRP
already/RB
has/VBZ
finagled/VBN
a/DT
$/$
2/CD
billion/CD
loan/NN
from/IN
the/DT
Japanese/JJ
government/NN
./.
But/CC
Mexico/NNP
urgently/RB
needs/VBZ
more/JJR
help/NN
./.
Mr./NNP
Salinas/NNP
's/POS
unpopular/JJ
Institutional/NNP
Revolutionary/NNP
Party/NNP
,/,
or/CC
PRI/NNP
,/,
faces/VBZ
congressional/JJ
elections/NNS
in/IN
1991/CD
./.
For/IN
the/DT
PRI/NNP
to/TO
stand/VB
a/DT
chance/NN
,/,
Mr./NNP
Salinas/NNP
has/VBZ
to/TO
press/VB
on/RB
with/IN
an/DT
economic/JJ
program/NN
that/WDT
so/RB
far/RB
has/VBZ
succeeded/VBN
in/IN
lowering/VBG
inflation/NN
and/CC
providing/VBG
moderate/JJ
economic/JJ
growth/NN
./.
But/CC
maintaining/VBG
the/DT
key/JJ
components/NNS
of/IN
his/PRP$
strategy/NN
--/:
a/DT
stable/JJ
exchange/NN
rate/NN
and/CC
high/JJ
level/NN
of/IN
imports/NNS
--/:
will/MD
consume/VB
enormous/JJ
amounts/NNS
of/IN
foreign/JJ
exchange/NN
./.
Mr./NNP
Salinas/NNP
needs/VBZ
big/JJ
investment/NN
inflows/NNS
--/:
quickly/RB
./.
The/DT
problem/NN
is/VBZ
that/IN
Japanese/JJ
businesses/NNS
make/VBP
decisions/NNS
with/IN
a/DT
view/NN
well/RB
beyond/IN
the/DT
coming/JJ
months/NNS
that/WDT
weigh/VBP
so/RB
heavily/RB
on/IN
Mr./NNP
Salinas/NNP
./.
``/``
The/DT
Japanese/NNPS
will/MD
come/VB
to/TO
Mexico/NNP
,/,
but/CC
not/RB
immediately/RB
,/,
''/''
says/VBZ
Kazushige/NNP
Suzuki/NNP
,/,
director-general/NN
of/IN
the/DT
Japanese/NNP
External/NNP
Trade/NNP
Organization/NNP
in/IN
Mexico/NNP
./.
If/IN
not/RB
now/RB
,/,
when/WRB
?/.
``/``
When/WRB
the/DT
fruit/NN
is/VBZ
ripe/JJ
,/,
it/PRP
falls/VBZ
from/IN
the/DT
tree/NN
by/IN
itself/PRP
,/,
''/''
he/PRP
says/VBZ
./.
Pressed/VBN
on/IN
the/DT
matter/NN
,/,
he/PRP
is/VBZ
more/RBR
specific/JJ
./.
``/``
There/EX
will/MD
be/VB
big/JJ
Japanese/JJ
investments/NNS
probably/RB
five/CD
to/TO
10/CD
years/NNS
from/IN
now/RB
./.
''/''
Ryukichi/NNP
Imai/NNP
,/,
Japan/NNP
's/POS
ambassador/NN
to/TO
Mexico/NNP
,/,
agrees/VBZ
that/IN
Mexico/NNP
may/MD
be/VB
too/RB
eager/JJ
./.
``/``
There/EX
seems/VBZ
to/TO
be/VB
a/DT
presumption/NN
in/IN
some/DT
sectors/NNS
of/IN
(/(
Mexico/NNP
's/POS
government/NN
that/IN
there/EX
is/VBZ
a/DT
lot/NN
of/IN
Japanese/JJ
money/NN
waiting/VBG
behind/IN
the/DT
gate/NN
,/,
and/CC
that/IN
by/IN
slightly/RB
opening/VBG
the/DT
gate/NN
,/,
that/DT
money/NN
will/MD
enter/VB
Mexico/NNP
./.
I/PRP
do/VBP
n't/RB
think/VB
that/DT
is/VBZ
the/DT
case/NN
./.
''/''
Mexican/JJ
officials/NNS
maintain/VBP
the/DT
Japanese/JJ
reserve/NN
is/VBZ
only/RB
a/DT
result/NN
of/IN
unfamiliarity/NN
./.
``/``
Because/IN
of/IN
distance/NN
,/,
it/PRP
takes/VBZ
a/DT
while/NN
for/IN
them/PRP
to/TO
appreciate/VB
the/DT
economic/JJ
stability/NN
we/PRP
've/VBP
achieved/VBN
,/,
''/''
says/VBZ
one/CD
economic/JJ
policymaker/NN
./.
Mexico/NNP
is/VBZ
sending/VBG
a/DT
number/NN
of/IN
missions/NNS
to/TO
Japan/NNP
looking/VBG
for/IN
a/DT
major/JJ
breakthrough/NN
investment/NN
in/IN
telecommunications/NNS
,/,
petrochemicals/NNS
or/CC
tourism/NN
./.
It/PRP
is/VBZ
hoped/VBN
that/IN
other/JJ
Japanese/NNPS
would/MD
then/RB
follow/VB
the/DT
leader/NN
./.
But/CC
Japanese/JJ
investors/NNS
say/VBP
that/IN
their/PRP$
reluctance/NN
to/TO
invest/VB
stems/VBZ
not/RB
only/RB
from/IN
concerns/NNS
about/IN
Mexico/NNP
's/POS
economic/JJ
outlook/NN
,/,
but/CC
also/RB
reservations/NNS
about/IN
Mexico/NNP
's/POS
recently/RB
revamped/VBN
investment/NN
law/NN
./.
Unable/JJ
to/TO
get/VB
a/DT
new/JJ
law/NN
through/IN
a/DT
congress/NN
with/IN
a/DT
strong/JJ
leftist/JJ
bloc/NN
,/,
Mexico/NNP
jury-rigged/VBD
the/DT
existing/VBG
law/NN
's/POS
regulations/NNS
./.
It/PRP
created/VBD
special/JJ
20-year/JJ
trusts/NNS
to/TO
allow/VB
foreigners/NNS
100/CD
%/NN
ownership/NN
in/IN
some/DT
once-closed/JJ
industries/NNS
./.
It/PRP
also/RB
made/VBD
artful/JJ
use/NN
of/IN
semantics/NNS
,/,
redefining/VBG
as/IN
non-strategic/JJ
industries/NNS
some/DT
that/WDT
had/VBD
been/VBN
in/IN
the/DT
national/JJ
domain/NN
./.
``/``
Those/DT
devices/NNS
do/VBP
n't/RB
give/VB
sufficient/JJ
certainty/NN
to/TO
our/PRP$
bosses/NNS
in/IN
Japan/NNP
,/,
''/''
says/VBZ
Yasuo/NNP
Nakamura/NNP
,/,
representative/NN
of/IN
the/DT
Industrial/NNP
Bank/NNP
of/IN
Japan/NNP
./.
Mr./NNP
Nakamura/NNP
cites/VBZ
the/DT
case/NN
of/IN
a/DT
customer/NN
who/WP
wants/VBZ
to/TO
build/VB
a/DT
giant/JJ
tourism/NN
complex/NN
in/IN
Baja/NN
and/CC
has/VBZ
been/VBN
trying/VBG
for/IN
eight/CD
years/NNS
to/TO
get/VB
around/IN
Mexican/NNP
restrictions/NNS
on/IN
foreign/JJ
ownership/NN
of/IN
beachfront/JJ
property/NN
./.
He/PRP
could/MD
develop/VB
the/DT
beach/NN
through/IN
a/DT
trust/NN
,/,
but/CC
instead/RB
is/VBZ
trying/VBG
have/VB
his/PRP$
grandson/NN
become/VB
a/DT
naturalized/JJ
Mexican/NNP
so/IN
his/PRP$
family/NN
gains/VBZ
direct/JJ
control/NN
./.
Some/DT
say/VBP
the/DT
best/JJS
hope/NN
for/IN
the/DT
Mexicans/NNPS
is/VBZ
catching/VBG
the/DT
eye/NN
of/IN
Japan/NNP
by/IN
promoting/VBG
the/DT
one/CD
industry/NN
the/DT
Japanese/NNPS
clearly/RB
like/VBP
--/:
the/DT
border/NN
assembly/NN
plants/NNS
,/,
known/VBN
as/IN
``/``
maquiladoras/FW
,/,
''/''
which/WDT
are/VBP
open/JJ
to/TO
100/CD
%/NN
foreign/JJ
control/NN
./.
``/``
We/PRP
must/MD
do/VB
more/JJR
to/TO
help/VB
the/DT
Japanese/NNPS
here/RB
in/IN
Baja/NNP
if/IN
we/PRP
want/VBP
them/PRP
to/TO
invest/VB
elsewhere/RB
,/,
''/''
says/VBZ
Mr./NNP
Ruffo/NNP
,/,
the/DT
governor-elect/NN
of/IN
the/DT
National/NNP
Action/NNP
Party/NNP
and/CC
himself/PRP
a/DT
succesful/JJ
businessman/NN
./.
Plant/NN
operators/NNS
are/VBP
heartened/VBN
by/IN
Mr./NNP
Ruffo/NNP
's/POS
pledge/NN
to/TO
cut/VB
corruption/NN
associated/VBN
with/IN
the/DT
ruling/VBG
party/NN
officials/NNS
./.
But/CC
Mr./NNP
Ruffo/NNP
frets/VBZ
that/IN
an/DT
even/RB
bigger/JJR
problem/NN
could/MD
be/VB
protectionism/NN
from/IN
the/DT
U.S./NNP
,/,
where/WRB
some/DT
politicians/NNS
oppose/VBP
what/WP
they/PRP
consider/VBP
Japanese/JJ
efforts/NNS
to/TO
use/VB
maquiladoras/FW
to/TO
crack/VB
the/DT
U.S./NNP
market/NN
through/IN
the/DT
back/JJ
door/NN
./.
Shaken/VBN
by/IN
tumbling/VBG
stock/NN
prices/NNS
and/CC
pessimistic/JJ
projections/NNS
of/IN
U.S./NNP
economic/JJ
growth/NN
,/,
currency/NN
analysts/NNS
around/IN
the/DT
world/NN
have/VBP
toned/VBN
down/RP
their/PRP$
assessments/NNS
of/IN
the/DT
dollar/NN
's/POS
near-term/JJ
performance/NN
./.
Most/JJS
of/IN
the/DT
10/CD
analysts/NNS
polled/VBN
last/JJ
week/NN
by/IN
Dow/NNP
Jones/NNP
International/NNP
News/NNP
Service/NNP
in/IN
Frankfurt/NNP
,/,
Tokyo/NNP
,/,
London/NNP
and/CC
New/NNP
York/NNP
expect/VBP
the/DT
U.S./NNP
dollar/NN
to/TO
ease/VB
only/RB
mildly/RB
in/IN
November/NNP
./.
Opinion/NN
is/VBZ
mixed/JJ
over/IN
its/PRP$
three-month/JJ
prospects/NNS
./.
Half/NN
of/IN
those/DT
polled/VBN
see/VBP
the/DT
currency/NN
trending/VBG
lower/JJR
over/IN
the/DT
next/JJ
three/CD
months/NNS
,/,
while/IN
the/DT
others/NNS
forecast/VBP
a/DT
modest/JJ
rebound/NN
after/IN
the/DT
New/NNP
Year/NN
./.
In/IN
late/JJ
afternoon/NN
New/NNP
York/NNP
trading/NN
yesterday/NN
,/,
the/DT
dollar/NN
stood/VBD
at/IN
1.8415/CD
West/JJ
German/JJ
marks/NNS
,/,
up/RB
from/IN
1.8340/CD
marks/NNS
late/RB
Monday/NNP
,/,
and/CC
at/IN
142.85/CD
yen/NNS
,/,
up/RB
from/IN
141.90/CD
yen/NNS
late/RB
Monday/NNP
./.
A/DT
month/NN
ago/RB
,/,
a/DT
similar/JJ
survey/NN
predicted/VBD
the/DT
dollar/NN
would/MD
be/VB
trading/VBG
at/IN
1.8690/CD
marks/NNS
and/CC
139.75/CD
yen/NNS
by/IN
the/DT
end/NN
of/IN
October/NNP
./.
Sterling/NN
was/VBD
trading/VBG
at/IN
$/$
1.5805/CD
,/,
down/RB
from/IN
$/$
1.5820/CD
late/JJ
Monday/NNP
./.
In/IN
Tokyo/NNP
Wednesday/NNP
,/,
the/DT
U.S./NNP
currency/NN
was/VBD
trading/VBG
at/IN
about/RB
142.95/CD
yen/NNS
at/IN
midmorning/NN
,/,
up/RB
from/IN
142.80/CD
yen/NNS
at/IN
the/DT
opening/NN
and/CC
up/RB
from/IN
Tuesday/NNP
's/POS
Tokyo/NNP
close/NN
of/IN
142.15/CD
yen/NNS
./.
The/DT
average/NN
of/IN
estimates/NNS
of/IN
the/DT
10/CD
economists/NNS
polled/VBN
puts/VBZ
the/DT
dollar/NN
around/IN
1.8200/CD
marks/NNS
at/IN
the/DT
end/NN
of/IN
November/NNP
and/CC
at/IN
141.33/CD
yen/NNS
./.
By/IN
late/JJ
January/NNP
,/,
the/DT
consensus/NN
calls/VBZ
for/IN
the/DT
dollar/NN
to/TO
be/VB
trading/VBG
around/IN
1.8200/CD
marks/NNS
and/CC
near/IN
142/CD
yen/NNS
./.
Those/DT
with/IN
a/DT
bullish/JJ
view/NN
see/VBP
the/DT
dollar/NN
trading/VBG
up/RB
near/IN
1.9000/CD
marks/NNS
and/CC
145/CD
yen/NNS
,/,
while/IN
the/DT
dollar/NN
bears/NNS
see/VBP
the/DT
U.S./NNP
currency/NN
trading/VBG
around/IN
1.7600/CD
marks/NNS
and/CC
138/CD
yen/NNS
./.
A/DT
number/NN
of/IN
those/DT
polled/VBN
predict/VBP
the/DT
dollar/NN
will/MD
slip/VB
as/IN
the/DT
Federal/NNP
Reserve/NNP
eases/VBZ
interest/NN
rates/NNS
./.
David/NNP
Owen/NNP
,/,
an/DT
economist/NN
at/IN
Kleinwort/NNP
Benson/NNP
&/CC
Co./NNP
in/IN
London/NNP
,/,
said/VBD
he/PRP
expects/VBZ
further/JJ
cuts/NNS
in/IN
short-term/JJ
U.S./NNP
rates/NNS
in/IN
an/DT
effort/NN
to/TO
encourage/VB
a/DT
narrowing/NN
of/IN
the/DT
trade/NN
gap/NN
and/CC
to/TO
ensure/VB
a/DT
soft/JJ
landing/NN
in/IN
the/DT
U.S./NNP
economy/NN
./.
Robert/NNP
White/NNP
,/,
a/DT
vice/NN
president/NN
and/CC
manager/NN
of/IN
corporate/JJ
trade/NN
at/IN
First/NNP
Interstate/NNP
of/IN
California/NNP
,/,
agreed/VBD
with/IN
that/DT
view/NN
and/CC
predicted/VBD
the/DT
U.S./NNP
federal/JJ
funds/NNS
rate/NN
will/MD
drop/VB
to/TO
between/IN
7/CD
3\/4/CD
%/NN
and/CC
8/CD
%/NN
within/IN
60/CD
days/NNS
from/IN
its/PRP$
current/JJ
level/NN
at/IN
8/CD
13\/16/CD
%/NN
./.
Fed/NNP
funds/NNS
is/VBZ
the/DT
rate/NN
banks/NNS
charge/VBP
each/DT
other/JJ
on/IN
overnight/JJ
loans/NNS
;/:
the/DT
Fed/NNP
influences/VBZ
the/DT
rate/NN
by/IN
adding/VBG
or/CC
draining/VBG
reserves/NNS
from/IN
the/DT
banking/NN
system/NN
./.
Mr./NNP
White/NNP
also/RB
predicted/VBD
a/DT
half-point/JJ
cut/NN
in/IN
the/DT
U.S./NNP
discount/NN
rate/NN
in/IN
the/DT
near/JJ
future/NN
./.
The/DT
discount/NN
rate/NN
,/,
currently/RB
7/CD
%/NN
,/,
is/VBZ
the/DT
rate/NN
the/DT
Fed/NNP
charges/VBZ
member/NN
banks/NNS
for/IN
loans/NNS
,/,
using/VBG
government/NN
securities/NNS
as/IN
collateral/NN
./.
He/PRP
expects/VBZ
such/PDT
a/DT
cut/NN
``/``
because/IN
of/IN
problems/NNS
in/IN
several/JJ
sectors/NNS
of/IN
the/DT
economy/NN
,/,
particularly/RB
real/JJ
estate/NN
and/CC
automobiles/NNS
./.
''/''
Bolstering/VBG
his/PRP$
argument/NN
,/,
the/DT
Commerce/NNP
Department/NNP
reported/VBD
yesterday/NN
that/IN
new/JJ
home/NN
sales/NNS
for/IN
September/NNP
were/VBD
down/RB
14/CD
%/NN
from/IN
August/NNP
's/POS
revised/JJ
3.1/CD
%/NN
fall/NN
./.
The/DT
drop/NN
marked/VBD
the/DT
largest/JJS
monthly/JJ
tumble/NN
since/IN
a/DT
19/CD
%/NN
slide/NN
in/IN
January/NNP
1982/CD
./.
In/IN
last/JJ
month/NN
's/POS
survey/NN
,/,
a/DT
number/NN
of/IN
currency/NN
analysts/NNS
predicted/VBD
the/DT
dollar/NN
would/MD
be/VB
pressured/VBN
by/IN
a/DT
narrowing/NN
of/IN
interest/NN
rate/NN
differentials/NNS
between/IN
the/DT
U.S./NNP
and/CC
West/NNP
Germany/NNP
./.
Indeed/RB
,/,
in/IN
early/JJ
October/NNP
the/DT
West/JJ
German/JJ
central/JJ
bank/NN
raised/VBD
its/PRP$
discount/NN
and/CC
Lombard/NNP
rates/NNS
by/IN
a/DT
full/JJ
percentage/NN
point/NN
./.
Several/JJ
other/JJ
European/JJ
central/JJ
banks/NNS
,/,
notably/RB
in/IN
Britain/NNP
,/,
followed/VBD
the/DT
West/JJ
German/JJ
Bundesbank/NNP
's/POS
lead/NN
by/IN
raising/VBG
their/PRP$
own/JJ
key/NN
rates/NNS
./.
And/CC
a/DT
week/NN
later/RB
,/,
Japan/NNP
raised/VBD
its/PRP$
official/JJ
discount/NN
rate/NN
by/IN
a/DT
half/JJ
point/NN
to/TO
3.75/CD
%/NN
./.
The/DT
Japanese/JJ
discount/NN
rate/NN
is/VBZ
the/DT
central/JJ
bank/NN
's/POS
base/JJ
rate/NN
on/IN
loans/NNS
to/TO
commercial/JJ
banks/NNS
./.
After/IN
a/DT
surprisingly/RB
sharp/JJ
widening/NN
in/IN
the/DT
U.S./NNP
August/NNP
merchandise/NN
trade/NN
deficit/NN
--/:
$/$
10.77/CD
billion/CD
from/IN
a/DT
revised/JJ
$/$
8.24/CD
billion/CD
in/IN
July/NNP
and/CC
well/RB
above/IN
expectations/NNS
--/:
and/CC
a/DT
startling/JJ
190-point/JJ
drop/NN
in/IN
stock/NN
prices/NNS
on/IN
Oct./NNP
13/CD
,/,
the/DT
Federal/NNP
Reserve/NNP
relaxed/VBD
short-term/JJ
interest/NN
rates/NNS
,/,
knocking/VBG
fed/VBN
funds/NNS
from/IN
around/IN
9/CD
%/NN
to/TO
8/CD
3\/4/CD
%/NN
./.
But/CC
predictions/NNS
that/IN
central/JJ
banks/NNS
of/IN
the/DT
Group/NNP
of/IN
Seven/NNP
G-7/NNP
major/JJ
industrial/JJ
nations/NNS
would/MD
continue/VB
their/PRP$
massive/JJ
dollar/NN
sales/NNS
went/VBD
astray/RB
,/,
as/IN
the/DT
market/NN
drove/VBD
the/DT
dollar/NN
downward/RB
on/IN
its/PRP$
own/JJ
,/,
reacting/VBG
to/TO
Wall/NNP
Street/NNP
's/POS
plunge/NN
and/CC
subsequent/JJ
price/NN
volatility/NN
,/,
lower/JJR
U.S./NNP
interest/NN
rates/NNS
and/CC
signs/NNS
of/IN
a/DT
slowing/VBG
U.S./NNP
economy/NN
./.
G-7/NNP
consists/VBZ
of/IN
the/DT
U.S./NNP
,/,
Japan/NNP
,/,
Britain/NNP
,/,
West/NNP
Germany/NNP
,/,
Canada/NNP
,/,
France/NNP
and/CC
Italy/NNP
./.
Tomoshige/NNP
Kakita/NNP
,/,
senior/JJ
deputy/NN
manager/NN
in/IN
the/DT
treasury/NN
department/NN
of/IN
Mitsui/NNP
Bank/NNP
Ltd./NNP
in/IN
Tokyo/NNP
,/,
suggested/VBD
that/IN
uncertainty/NN
about/IN
U.S./NNP
stocks/NNS
and/CC
bonds/NNS
has/VBZ
made/VBN
Japanese/JJ
investors/NNS
leery/JJ
of/IN
holding/VBG
those/DT
securities/NNS
in/IN
the/DT
near/JJ
term/NN
,/,
thus/RB
damping/VBG
dollar/NN
demand/NN
./.
But/CC
,/,
Mr./NNP
Kakita/NNP
added/VBD
,/,
once/RB
U.S./NNP
equities/NNS
regain/VBP
some/DT
stability/NN
,/,
players/NNS
will/MD
move/VB
back/RB
into/IN
dollar-denominated/JJ
investments/NNS
,/,
especially/RB
Treasury/NNP
bonds/NNS
,/,
whose/WP$
value/NN
rises/VBZ
when/WRB
interest/NN
rates/NNS
decline/VBP
./.
Mr./NNP
Kakita/NNP
said/VBD
the/DT
key/JJ
dollar-yen/JJ
exchange/NN
rate/NN
is/VBZ
at/IN
135/CD
yen/NNS
./.
``/``
If/IN
135/CD
is/VBZ
broken/VBN
,/,
some/DT
panic/NN
will/MD
be/VB
seen/VBN
,/,
''/''
he/PRP
predicted/VBD
,/,
explaining/VBG
that/IN
Japanese/JJ
institutions/NNS
are/VBP
comfortable/JJ
with/IN
the/DT
dollar/NN
anywhere/RB
between/IN
current/JJ
levels/NNS
and/CC
135/CD
yen/NNS
./.
Jens-Uwe/NNP
Fischer/NNP
,/,
a/DT
senior/JJ
trader/NN
at/IN
Manufacturers/NNP
Hanover/NNP
Trust/NNP
Co./NNP
in/IN
Frankfurt/NNP
,/,
said/VBD
he/PRP
expects/VBZ
the/DT
dollar/NN
to/TO
recover/VB
within/IN
the/DT
next/JJ
three/CD
months/NNS
to/TO
around/IN
1.88/CD
marks/NNS
as/IN
U.S./NNP
economic/JJ
data/NNS
,/,
particularly/RB
U.S./NNP
trade/NN
figures/NNS
,/,
level/VBP
off/RP
./.
He/PRP
contended/VBD
that/IN
the/DT
Fed/NNP
wo/MD
n't/RB
ease/VB
rates/NNS
further/RB
,/,
but/CC
predicted/VBD
Bundesbank/NNP
officials/NNS
will/MD
relax/VB
key/JJ
rates/NNS
in/IN
West/NNP
Germany/NNP
./.
Alfred/NNP
Zapfel/NNP
,/,
chief/JJ
trader/NN
at/IN
Bank/NNP
of/IN
Boston/NNP
in/IN
Frankfurt/NNP
,/,
took/VBD
an/DT
opposite/JJ
stance/NN
./.
He/PRP
said/VBD
he/PRP
expects/VBZ
U.S./NNP
interest/NN
rates/NNS
to/TO
decline/VB
,/,
dragging/VBG
the/DT
dollar/NN
down/RB
to/TO
around/IN
1.80/CD
marks/NNS
by/IN
the/DT
end/NN
of/IN
January/NNP
after/IN
a/DT
short-lived/JJ
dash/NN
to/TO
1.87/CD
marks/NNS
by/IN
the/DT
end/NN
of/IN
November/NNP
./.
West/JJ
German/JJ
interest/NN
rates/NNS
,/,
he/PRP
said/VBD
,/,
will/MD
remain/VB
unchanged/JJ
./.
``/``
But/CC
I/PRP
'm/VBP
not/RB
one/CD
of/IN
these/DT
great/JJ
dollar/NN
bears/NNS
you/PRP
see/VBP
more/JJR
of/IN
these/DT
days/NNS
,/,
''/''
Mr./NNP
Zapfel/NNP
said/VBD
./.
``/``
I/PRP
ca/MD
n't/RB
really/RB
see/VB
it/PRP
dropping/VBG
far/RB
below/IN
1.80/CD
marks/NNS
./.
''/''
Scott/NNP
Greene/NNP
,/,
chief/JJ
foreign/JJ
exchange/NN
dealer/NN
with/IN
Julius/NNP
Baer/NNP
&/CC
Co./NNP
in/IN
New/NNP
York/NNP
,/,
fits/VBZ
the/DT
description/NN
of/IN
a/DT
``/``
great/JJ
dollar/NN
bear/NN
./.
''/''
He/PRP
predicted/VBD
the/DT
U.S./NNP
unit/NN
will/MD
skid/VB
below/IN
1.80/CD
marks/NNS
to/TO
around/IN
1.78/CD
marks/NNS
this/DT
month/NN
and/CC
1.75/CD
marks/NNS
by/IN
the/DT
beginning/NN
of/IN
the/DT
new/JJ
year/NN
./.
``/``
We/PRP
're/VBP
finally/RB
seeing/VBG
the/DT
culmination/NN
of/IN
all/PDT
the/DT
recessionary/JJ
buildup/NN
of/IN
the/DT
last/JJ
few/JJ
months/NNS
,/,
''/''
he/PRP
said/VBD
,/,
noting/VBG
a/DT
continuing/VBG
downward/JJ
trend/NN
in/IN
U.S./NNP
interest/NN
rates/NNS
,/,
a/DT
shaky/JJ
stock/NN
market/NN
and/CC
``/``
gloomier/JJR
economic/JJ
times/NNS
ahead/RB
''/''
all/DT
signal/VBP
a/DT
significantly/RB
lower/JJR
dollar/NN
./.
In/IN
the/DT
wake/NN
of/IN
British/NNP
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
Nigel/NNP
Lawson/NNP
's/POS
surprise/JJ
resignation/NN
and/CC
sterling/NN
's/POS
subsequent/JJ
nose-dive/NN
,/,
most/JJS
analysts/NNS
had/VBD
little/JJ
good/JJ
to/TO
say/VB
about/IN
the/DT
pound/NN
's/POS
near-term/JJ
prospects/NNS
./.
Mr./NNP
Owen/NNP
of/IN
Kleinwort/NNP
Benson/NNP
suggested/VBD
that/IN
the/DT
new/JJ
chancellor/NN
,/,
John/NNP
Major/NNP
,/,
will/MD
take/VB
a/DT
tough/JJ
line/NN
in/IN
his/PRP$
autumn/NN
statement/NN
later/RB
this/DT
month/NN
,/,
helping/VBG
to/TO
underpin/VB
the/DT
pound/NN
./.
But/CC
,/,
he/PRP
warned/VBD
,/,
the/DT
currency/NN
will/MD
remain/VB
at/IN
risk/NN
./.
On/IN
the/DT
Commodity/NNP
Exchange/NNP
in/IN
New/NNP
York/NNP
,/,
gold/NN
for/IN
current/JJ
delivery/NN
dropped/VBD
$/$
3.10/CD
to/TO
$/$
374.70/CD
an/DT
ounce/NN
in/IN
moderate/JJ
trading/NN
./.
Estimated/JJ
volume/NN
was/VBD
3.5/CD
million/CD
ounces/NNS
./.
In/IN
early/RB
trading/NN
in/IN
Hong/NNP
Kong/NNP
Wednesday/NNP
,/,
gold/NN
was/VBD
quoted/VBN
at/IN
$/$
373.80/CD
an/DT
ounce/NN
./.
Christopher/NNP
Hill/NNP
in/IN
Tokyo/NNP
,/,
Nicholas/NNP
Hastings/NNP
in/IN
London/NNP
,/,
Erik/NNP
Kirschbaum/NNP
in/IN
Frankfurt/NNP
and/CC
Caitlin/NNP
Randall/NNP
and/CC
Douglas/NNP
Appell/NNP
in/IN
New/NNP
York/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
West/NNP
Germany/NNP
will/MD
repeal/VB
the/DT
unpopular/JJ
turnover/NN
tax/NN
on/IN
securities/NNS
transactions/NNS
as/IN
of/IN
Jan./NNP
1/CD
,/,
1991/CD
,/,
Economics/NNP
Minister/NNP
Helmut/NNP
Haussmann/NNP
said/VBD
./.
He/PRP
said/VBD
the/DT
government/NN
will/MD
also/RB
repeal/VB
the/DT
1/CD
%/NN
transaction/NN
tax/NN
on/IN
the/DT
first-time/JJ
purchase/NN
of/IN
stakes/NNS
in/IN
companies/NNS
./.
The/DT
announcement/NN
follows/VBZ
several/JJ
comments/NNS
by/IN
government/NN
officials/NNS
that/IN
the/DT
government/NN
will/MD
speed/VB
up/RP
the/DT
repeal/NN
of/IN
the/DT
tax/NN
,/,
which/WDT
was/VBD
originally/RB
scheduled/VBN
to/TO
fall/VB
with/IN
the/DT
start/NN
of/IN
the/DT
single/JJ
internal/JJ
market/NN
in/IN
the/DT
European/NNP
Community/NNP
at/IN
the/DT
end/NN
of/IN
1992/CD
./.
The/DT
securities-turnover/JJ
tax/NN
has/VBZ
been/VBN
long/RB
criticized/VBN
by/IN
the/DT
West/JJ
German/JJ
financial/JJ
community/NN
because/IN
it/PRP
tends/VBZ
to/TO
drive/VB
securities/NNS
trading/NN
and/CC
other/JJ
banking/NN
activities/NNS
out/IN
of/IN
Frankfurt/NNP
into/IN
rival/JJ
financial/JJ
centers/NNS
,/,
especially/RB
London/NNP
,/,
where/WRB
trading/NN
transactions/NNS
is/VBZ
n't/RB
taxed/VBN
./.
The/DT
tax/NN
has/VBZ
raised/VBN
less/JJR
than/IN
one/CD
billion/CD
marks/NNS
$/$
545.3/CD
million/CD
recent/JJ
years/NNS
,/,
but/CC
the/DT
government/NN
has/VBZ
been/VBN
reluctant/JJ
to/TO
abolish/VB
the/DT
levy/NN
for/IN
budgetary/JJ
concerns/NNS
./.
In/IN
the/DT
interview/NN
,/,
Mr./NNP
Haussmann/NNP
did/VBD
n't/RB
specify/VB
the/DT
amount/NN
of/IN
revenue/NN
the/DT
government/NN
will/MD
lose/VB
after/IN
the/DT
tax/NN
disappears/VBZ
./.
The/DT
new/JJ
date/NN
means/VBZ
that/IN
the/DT
tax/NN
will/MD
be/VB
officially/RB
repealed/VBN
before/IN
the/DT
end/NN
of/IN
the/DT
current/JJ
parliamentary/JJ
term/NN
at/IN
the/DT
end/NN
of/IN
1990/CD
and/CC
guarantees/VBZ
its/PRP$
abolition/NN
even/RB
if/IN
the/DT
current/JJ
center-right/JJ
coalition/NN
loses/VBZ
the/DT
elections/NNS
in/IN
December/NNP
1990/CD
./.
Earlier/RBR
this/DT
year/NN
,/,
President/NNP
Bush/NNP
made/VBD
a/DT
final/JJ
``/``
take-it-or-leave/JJ
it/PRP
''/''
offer/NN
on/IN
the/DT
minimum/JJ
wage/NN
:/:
an/DT
increase/NN
to/TO
$/$
4.25/CD
an/DT
hour/NN
over/IN
three/CD
years/NNS
,/,
and/CC
only/RB
if/IN
accompanied/VBN
by/IN
a/DT
lower/JJR
wage/NN
for/IN
the/DT
first/JJ
six/CD
months/NNS
of/IN
a/DT
job/NN
./.
Now/RB
,/,
the/DT
White/NNP
House/NNP
has/VBZ
decided/VBN
to/TO
accept/VB
the/DT
higher/JJR
wage/NN
over/IN
only/RB
two/CD
years/NNS
./.
The/DT
sub-minimum/JJ
wage/NN
would/MD
apply/VB
only/RB
to/TO
first-time/JJ
teen-age/JJ
workers/NNS
for/IN
90/CD
days/NNS
./.
The/DT
White/NNP
House/NNP
had/VBD
enough/JJ
votes/NNS
to/TO
sustain/VB
a/DT
veto/NN
but/CC
chose/VBD
to/TO
avoid/VB
a/DT
confrontation/NN
./.
The/DT
only/JJ
permanent/JJ
losers/NNS
will/MD
be/VB
the/DT
200,000/CD
or/CC
so/RB
workers/NNS
everyone/NN
agrees/VBZ
will/MD
be/VB
priced/VBN
out/IN
of/IN
a/DT
job/NN
at/IN
the/DT
$/$
4.25/CD
rate/NN
Congress/NNP
is/VBZ
likely/JJ
to/TO
approve/VB
today/NN
./.
It/PRP
is/VBZ
compromises/NNS
such/JJ
as/IN
this/DT
that/WDT
convince/VBP
Washington/NNP
's/POS
liberals/NNS
that/IN
if/IN
they/PRP
simply/RB
stay/VBP
the/DT
course/NN
,/,
this/DT
administration/NN
will/MD
stray/VB
from/IN
its/PRP$
own/JJ
course/NN
on/IN
this/DT
and/CC
other/JJ
issues/NNS
./.
The/DT
head/JJ
trader/NN
of/IN
Chemical/NNP
Banking/NNP
Corp./NNP
's/POS
interest-rate/NN
options/NNS
group/NN
has/VBZ
left/VBN
the/DT
company/NN
,/,
following/VBG
valuation/NN
errors/NNS
that/WDT
resulted/VBD
in/IN
a/DT
$/$
33/CD
million/CD
charge/NN
against/IN
its/PRP$
third-quarter/JJ
results/NNS
./.
Chemical/NNP
said/VBD
Steven/NNP
Edelson/NNP
resigned/VBD
recently/RB
,/,
but/CC
one/CD
individual/NN
close/RB
to/TO
the/DT
situation/NN
said/VBD
the/DT
resignation/NN
was/VBD
forced/VBN
./.
Mr./NNP
Edelson/NNP
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
A/DT
separate/JJ
inquiry/NN
by/IN
Chemical/NNP
cleared/VBD
Mr./NNP
Edelson/NNP
of/IN
allegations/NNS
that/IN
he/PRP
had/VBD
been/VBN
lavishly/RB
entertained/VBN
by/IN
a/DT
New/NNP
York/NNP
money/NN
broker/NN
./.
That/DT
inquiry/NN
has/VBZ
n't/RB
resolved/VBD
similar/JJ
allegations/NNS
involving/VBG
another/DT
Chemical/NNP
options/NNS
trader/NN
./.
In/IN
other/JJ
personnel/NNS
changes/NNS
stemming/VBG
from/IN
problems/NNS
in/IN
its/PRP$
options/NNS
unit/NN
:/:
--/:
Chemical/NNP
named/VBD
James/NNP
Kennedy/NNP
,/,
a/DT
trader/NN
in/IN
swaps/NNS
contracts/NNS
for/IN
the/DT
bank/NN
,/,
to/TO
assume/VB
Mr./NNP
Edelson/NNP
's/POS
duties/NNS
and/CC
to/TO
be/VB
trading/NN
manager/NN
for/IN
derivative/JJ
products/NNS
,/,
including/VBG
swaps/NNS
and/CC
interest-rate/NN
options/NNS
./.
--/:
Lee/NNP
Wakeman/NNP
,/,
vice/NN
president/NN
in/IN
charge/NN
of/IN
options/NNS
research/NN
who/WP
discovered/VBD
the/DT
valuation/NN
errors/NNS
and/CC
was/VBD
asked/VBN
by/IN
senior/JJ
management/NN
to/TO
straighten/VB
out/RP
the/DT
mess/NN
,/,
resigned/VBD
to/TO
take/VB
a/DT
position/NN
in/IN
asset/NN
and/CC
liability/NN
management/NN
at/IN
Continental/NNP
Bank/NNP
in/IN
Chicago/NNP
./.
Mr./NNP
Wakeman/NNP
,/,
whom/WP
Chemical/NNP
tried/VBD
to/TO
keep/VB
,/,
did/VBD
n't/RB
return/VB
calls/NNS
for/IN
comment/NN
./.
Separately/RB
,/,
Chemical/NNP
confirmed/VBD
that/IN
it/PRP
took/VBD
an/DT
undisclosed/JJ
charge/NN
in/IN
the/DT
second/JJ
quarter/NN
for/IN
losses/NNS
on/IN
forward-rate/JJ
agreements/NNS
involving/VBG
foreign/JJ
currency/NN
written/VBN
by/IN
its/PRP$
branch/NN
in/IN
Frankfurt/NNP
,/,
West/NNP
Germany/NNP
./.
A/DT
Chemical/NNP
spokeswoman/NN
said/VBD
the/DT
second-quarter/JJ
charge/NN
was/VBD
``/``
not/RB
material/JJ
''/''
and/CC
that/IN
no/DT
personnel/NNS
changes/NNS
were/VBD
made/VBN
as/IN
a/DT
result/NN
./.
The/DT
spokeswoman/NN
said/VBD
the/DT
Frankfurt/NNP
situation/NN
was/VBD
``/``
totally/RB
different/JJ
''/''
from/IN
problems/NNS
in/IN
the/DT
interest-rate/NN
options/NNS
unit/NN
./.
According/VBG
to/TO
individuals/NNS
familiar/JJ
with/IN
the/DT
situation/NN
,/,
the/DT
Frankfurt/NNP
loss/NN
stemmed/VBD
from/IN
a/DT
computer/NN
program/NN
for/IN
calculating/VBG
prices/NNS
on/IN
forward-rate/JJ
agreements/NNS
that/WDT
failed/VBD
to/TO
envision/VB
an/DT
interest-rate/NN
environment/NN
where/WRB
short-term/JJ
rates/NNS
were/VBD
equal/JJ
to/TO
or/CC
higher/JJR
than/IN
long-term/JJ
rates/NNS
./.
While/IN
the/DT
incidents/NNS
involving/VBG
interest-rate/NN
options/NNS
and/CC
forward-rate/JJ
agreements/NNS
are/VBP
unrelated/JJ
,/,
some/DT
observers/NNS
say/VBP
they/PRP
echo/VBP
a/DT
1987/CD
incident/NN
in/IN
which/WDT
Bankers/NNP
Trust/NNP
New/NNP
York/NNP
Corp./NNP
restated/VBD
the/DT
value/NN
of/IN
its/PRP$
foreign/JJ
exchange/NN
options/NNS
contracts/NN
downward/RB
by/IN
about/RB
$/$
80/CD
million/CD
./.
These/DT
complex/JJ
products/NNS
require/VBP
close/JJ
monitoring/NN
because/IN
each/DT
must/MD
be/VB
valued/VBN
separately/RB
in/IN
light/NN
of/IN
current/JJ
market/NN
conditions/NNS
./.
In/IN
an/DT
interest-rate/NN
options/NNS
contract/NN
,/,
a/DT
client/NN
pays/VBZ
a/DT
fee/NN
to/TO
a/DT
bank/NN
for/IN
custom-tailored/JJ
protection/NN
against/IN
adverse/JJ
interest-rate/NN
swings/NNS
for/IN
a/DT
specified/JJ
period/NN
./.
In/IN
a/DT
forward-rate/JJ
agreement/NN
,/,
a/DT
client/NN
agrees/VBZ
to/TO
an/DT
exchange/NN
rate/NN
on/IN
a/DT
future/JJ
currency/NN
transaction/NN
./.
Some/DT
competitors/NNS
maintain/VBP
the/DT
interestrate/NN
option/NN
loss/NN
,/,
in/IN
particular/JJ
,/,
may/MD
have/VB
resulted/VBN
more/RBR
from/IN
Chemical/NNP
's/POS
taking/VBG
large/JJ
and/CC
often/RB
contrarian/JJ
positions/NNS
than/IN
a/DT
valuation/NN
problem/NN
./.
Started/VBN
three/CD
years/NNS
ago/RB
,/,
Chemical/NNP
's/POS
interest-rate/NN
options/NNS
group/NN
was/VBD
a/DT
leading/JJ
force/NN
in/IN
the/DT
field/NN
./.
From/IN
1987/CD
to/TO
1988/CD
,/,
the/DT
value/NN
of/IN
Chemical/NNP
's/POS
option/NN
contracts/NNS
outstanding/JJ
mushroomed/VBD
to/TO
$/$
37/CD
billion/CD
from/IN
$/$
17/CD
billion/CD
./.
More/RBR
importantly/RB
,/,
the/DT
volume/NN
of/IN
options/NNS
written/VBN
exceeded/VBD
those/DT
purchased/VBN
by/IN
almost/RB
2-to-1/JJ
./.
With/IN
such/PDT
a/DT
lopsided/JJ
book/NN
of/IN
options/NNS
,/,
traders/NNS
say/VBP
,/,
Chemical/NNP
was/VBD
more/RBR
vulnerable/JJ
to/TO
erroneous/JJ
valuation/NN
assumptions/NNS
./.
The/DT
Chemical/NNP
spokeswoman/NN
said/VBD
the/DT
bank/NN
has/VBZ
examined/VBN
its/PRP$
methodologies/NNS
and/CC
internal/JJ
controls/NNS
./.
``/``
We/PRP
consider/VBP
our/PRP$
internal/JJ
controls/NNS
to/TO
have/VB
worked/VBN
well/RB
,/,
''/''
she/PRP
said/VBD
,/,
adding/VBG
that/IN
some/DT
procedures/NNS
have/VBP
been/VBN
strengthened/VBN
./.
Its/PRP$
valuation/NN
methodologies/NNS
,/,
she/PRP
said/VBD
,/,
``/``
are/VBP
recognized/VBN
as/IN
some/DT
of/IN
the/DT
best/JJS
on/IN
the/DT
Street/NNP
./.
Not/RB
a/DT
lot/NN
was/VBD
needed/VBN
to/TO
be/VB
done/VBN
./.
''/''
When/WRB
Thomas/NNP
W./NNP
Wathen/NNP
went/VBD
big/JJ
league/NN
last/JJ
year/NN
,/,
he/PRP
acquired/VBD
a/DT
treasure-trove/NN
of/IN
Americana/NNS
along/IN
with/IN
a/DT
well-known/JJ
but/CC
ailing/JJ
security/NN
business/NN
:/:
Pinkerton/NNP
's/POS
Inc/NNP
./.
There/EX
was/VBD
a/DT
wanted/JJ
poster/NN
offering/VBG
``/``
Rewards/NNS
for/IN
the/DT
Arrest/NN
of/IN
Express/NN
and/CC
Train/NN
Robbers/NNS
Frank/NNP
James/NNP
and/CC
Jesse/NNP
W./NNP
James/NNP
''/''
and/CC
the/DT
original/JJ
Pinkerton/NNP
's/POS
logo/NN
with/IN
an/DT
open/JJ
eye/NN
and/CC
the/DT
inscription/NN
``/``
We/PRP
Never/RB
Sleep/VBP
,/,
''/''
which/WDT
inspired/VBD
the/DT
phrase/NN
``/``
private/JJ
eye/NN
./.
''/''
Then/RB
there/EX
were/VBD
two/CD
gold/NN
watches/NNS
once/RB
owned/VBN
by/IN
Allan/NNP
Pinkerton/NNP
,/,
who/WP
founded/VBD
the/DT
company/NN
in/IN
Chicago/NNP
in/IN
1850/CD
./.
But/CC
there/EX
were/VBD
supposed/VBN
to/TO
be/VB
three/CD
,/,
Mr./NNP
Wathen/NNP
's/POS
company/NN
claims/VBZ
./.
The/DT
missing/JJ
watch/NN
is/VBZ
emblematic/JJ
of/IN
the/DT
problems/NNS
Mr./NNP
Wathen/NNP
encountered/VBD
in/IN
building/VBG
his/PRP$
closely/RB
held/VBN
California/NNP
Plant/NNP
Protection/NNP
Security/NNP
Service/NNP
into/IN
the/DT
largest/JJS
detective/NN
and/CC
security/NN
agency/NN
in/IN
the/DT
U.S./NNP
through/IN
acquisitions/NNS
./.
The/DT
ever-optimistic/JJ
Mr./NNP
Wathen/NNP
has/VBZ
learned/VBN
that/IN
while/IN
acquiring/VBG
a/DT
big/JJ
brand-name/JJ
company/NN
can/MD
be/VB
a/DT
shortcut/NN
to/TO
growth/NN
,/,
it/PRP
can/MD
also/RB
bring/VB
a/DT
host/NN
of/IN
unforeseen/JJ
problems/NNS
./.
``/``
We/PRP
cleared/VBD
out/RP
a/DT
lot/NN
of/IN
rats/NNS
'/POS
nests/NNS
,/,
''/''
says/VBZ
the/DT
60-year-old/JJ
security/NN
veteran/NN
./.
Mr./NNP
Wathen/NNP
,/,
who/WP
started/VBD
his/PRP$
career/NN
as/IN
an/DT
Air/NNP
Force/NNP
investigator/NN
and/CC
worked/VBD
as/IN
a/DT
security/NN
officer/NN
for/IN
several/JJ
large/JJ
companies/NNS
,/,
built/VBD
his/PRP$
California/NNP
Plant/NNP
Protection/NNP
from/IN
a/DT
tiny/JJ
mom-and-pop/JJ
security/NN
patrol/NN
firm/NN
here/RB
in/IN
the/DT
San/NNP
Fernando/NNP
Valley/NNP
./.
He/PRP
joined/VBD
the/DT
firm/NN
in/IN
1963/CD
and/CC
bought/VBD
it/PRP
from/IN
the/DT
owners/NNS
the/DT
next/JJ
year/NN
./.
Over/IN
the/DT
next/JJ
20/CD
years/NNS
,/,
California/NNP
Plant/NNP
Protection/NNP
opened/VBD
125/CD
offices/NNS
around/IN
the/DT
country/NN
./.
Yet/CC
although/IN
California/NNP
Plant/NNP
Protection/NNP
was/VBD
netting/VBG
bigger/JJR
and/CC
bigger/JJR
clients/NNS
--/:
the/DT
firm/NN
provided/VBD
security/NN
for/IN
the/DT
1984/CD
Summer/NNP
Olympics/NNP
in/IN
Los/NNP
Angeles/NNP
--/:
it/PRP
still/RB
did/VBD
n't/RB
have/VB
the/DT
name/NN
recognition/NN
of/IN
Pinkerton/NNP
's/POS
./.
So/RB
when/WRB
American/NNP
Brands/NNP
Inc./NNP
decided/VBD
to/TO
sell/VB
the/DT
unit/NN
in/IN
1987/CD
as/IN
part/NN
of/IN
a/DT
divestiture/NN
of/IN
its/PRP$
food/NN
and/CC
security/NN
industries/NNS
operations/NNS
,/,
Mr./NNP
Wathen/NNP
saw/VBD
a/DT
chance/NN
to/TO
accomplish/VB
several/JJ
objectives/NNS
./.
He/PRP
decided/VBD
he/PRP
could/MD
easily/RB
merge/VB
Pinkerton/NNP
's/POS
operations/NNS
with/IN
his/PRP$
own/JJ
while/NN
slashing/VBG
overhead/JJ
costs/NNS
because/IN
the/DT
two/CD
already/RB
operated/VBD
in/IN
many/JJ
of/IN
the/DT
same/JJ
cities/NNS
./.
He/PRP
could/MD
acquire/VB
a/DT
staff/NN
of/IN
loyal/JJ
Pinkerton/NNP
's/POS
employees/NNS
,/,
many/DT
of/IN
whom/WP
had/VBD
spent/VBN
their/PRP$
entire/JJ
careers/NNS
with/IN
the/DT
firm/NN
,/,
he/PRP
could/MD
eliminate/VB
a/DT
competitor/NN
and/CC
he/PRP
could/MD
get/VB
the/DT
name/NN
recognition/NN
he/PRP
'd/VBD
wanted/VBN
./.
Mr./NNP
Wathen/NNP
also/RB
relished/VBD
the/DT
chance/NN
to/TO
demonstrate/VB
an/DT
entrepreneur/NN
like/IN
himself/PRP
,/,
who/WP
'd/VBD
spent/VBN
his/PRP$
whole/JJ
career/NN
in/IN
the/DT
security/NN
business/NN
,/,
could/MD
run/VB
Pinkerton/NNP
's/POS
better/RBR
than/IN
an/DT
unfocused/JJ
conglomerate/NN
or/CC
investment/NN
banker/NN
./.
``/``
The/DT
security/NN
business/NN
is/VBZ
my/PRP$
favorite/JJ
subject/NN
./.
I/PRP
love/VBP
this/DT
business/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
Most/JJS
of/IN
the/DT
LBO/NNP
guys/NNS
do/VBP
n't/RB
know/VB
how/WRB
to/TO
run/VB
a/DT
business/NN
anyway/RB
./.
''/''
But/CC
there/EX
were/VBD
hitches/NNS
,/,
not/RB
the/DT
least/JJS
of/IN
which/WDT
was/VBD
that/DT
,/,
Mr./NNP
Wathen/NNP
says/VBZ
,/,
he/PRP
proceeded/VBD
almost/RB
blindly/RB
in/IN
doing/VBG
the/DT
$/$
95/CD
million/CD
acquisition/NN
,/,
which/WDT
was/VBD
completed/VBN
in/IN
January/NNP
1988/CD
./.
``/``
We/PRP
were/VBD
n't/RB
allowed/VBN
to/TO
do/VB
any/DT
due/JJ
diligence/NN
because/IN
of/IN
competitive/JJ
reasons/NNS
./.
If/IN
we/PRP
had/VBD
,/,
it/PRP
might/MD
have/VB
scared/VBN
us/PRP
off/RP
,/,
''/''
he/PRP
says/VBZ
./.
Five/CD
years/NNS
of/IN
rapid/JJ
expansion/NN
under/IN
American/NNP
Brands/NNP
,/,
with/IN
an/DT
emphasis/NN
on/IN
marketing/VBG
the/DT
agency/NN
's/POS
services/NNS
instead/RB
of/IN
improving/VBG
them/PRP
,/,
had/VBD
hurt/VBN
Pinkerton/NNP
's/POS
profits/NNS
,/,
Mr./NNP
Wathen/NNP
claims/VBZ
./.
He/PRP
says/VBZ
his/PRP$
team/NN
could/MD
n't/RB
tell/VB
whether/IN
accounts/NNS
receivable/JJ
had/VBD
been/VBN
paid/VBN
or/CC
not/RB
./.
Pinkerton/NNP
's/POS
had/VBD
locked/VBN
itself/PRP
into/IN
low-price/JJ
contracts/NNS
to/TO
win/VB
new/JJ
business/NN
,/,
with/IN
no/DT
hope/NN
of/IN
profitability/NN
until/IN
the/DT
contracts/NNS
expired/VBD
,/,
he/PRP
adds/VBZ
./.
And/CC
regional/JJ
offices/NNS
were/VBD
``/``
egregiously/RB
overstaffed/JJ
,/,
''/''
he/PRP
claims/VBZ
./.
One/CD
office/NN
had/VBD
19/CD
people/NNS
doing/VBG
the/DT
work/NN
of/IN
three/CD
,/,
``/``
and/CC
half/NN
of/IN
the/DT
employees/NNS
had/VBD
company/NN
automobiles/NNS
./.
''/''
American/NNP
Brands/NNP
declined/VBD
to/TO
comment/VB
on/IN
Mr./NNP
Wathen/NNP
's/POS
accusations/NNS
./.
The/DT
acquisition/NN
combined/VBD
the/DT
country/NN
's/POS
second-largest/JJ
security/NN
company/NN
,/,
Pinkerton/NNP
's/POS
,/,
with/IN
1987/CD
sales/NNS
of/IN
$/$
410/CD
million/CD
,/,
and/CC
the/DT
fourth/JJ
largest/JJS
,/,
California/NNP
Plant/NNP
Protection/NNP
,/,
with/IN
$/$
250/CD
million/CD
in/IN
sales/NNS
,/,
creating/VBG
the/DT
industry/NN
's/POS
biggest/JJS
firm/NN
,/,
which/WDT
took/VBD
on/RP
the/DT
Pinkerton/NNP
's/POS
name/NN
./.
Even/RB
after/IN
divesting/VBG
itself/PRP
of/IN
$/$
120/CD
million/CD
of/IN
unprofitable/JJ
business/NN
,/,
the/DT
new/JJ
Pinkerton/NNP
's/POS
will/MD
have/VB
sales/NNS
of/IN
about/RB
$/$
610/CD
million/CD
this/DT
year/NN
and/CC
operating/NN
profit/NN
roughly/RB
double/RB
the/DT
industry/NN
average/NN
of/IN
2%-3/JJ
%/NN
of/IN
sales/NNS
,/,
says/VBZ
Lloyd/NNP
Greif/NNP
of/IN
Sutro/NNP
&/CC
Co./NNP
in/IN
Los/NNP
Angeles/NNP
,/,
which/WDT
arranged/VBD
the/DT
Pinkerton/NNP
's/POS
acquisition/NN
./.
Mr./NNP
Wathen/NNP
says/VBZ
his/PRP$
turnaround/NN
strategy/NN
has/VBZ
been/VBN
simple/JJ
:/:
just/RB
hack/VB
away/RP
at/IN
the/DT
fat/NN
./.
He/PRP
began/VBD
by/IN
closing/VBG
120/CD
of/IN
the/DT
combined/JJ
companies/NNS
'/POS
260/CD
offices/NNS
in/IN
two/CD
months/NNS
,/,
eliminating/VBG
about/RB
31/CD
%/NN
of/IN
the/DT
company/NN
's/POS
2,500-person/JJ
adminstrative/JJ
staff/NN
,/,
including/VBG
more/JJR
than/IN
100/CD
sales/NNS
positions/NNS
./.
He/PRP
shut/VBD
down/RP
the/DT
company/NN
's/POS
tony/JJ
New/NNP
York/NNP
headquarters/NN
./.
Pinkerton/NNP
's/POS
world/NN
headquarters/NN
today/NN
is/VBZ
a/DT
nondescript/JJ
,/,
two-story/JJ
office/NN
building/NN
across/IN
the/DT
street/NN
from/IN
the/DT
small/JJ
Van/NNP
Nuys/NNP
Airport/NNP
./.
Next/RB
,/,
Mr./NNP
Wathen/NNP
raised/VBD
Pinkerton/NNP
's/POS
rates/NNS
,/,
which/WDT
were/VBD
75-cents-an-hour/NNS
lower/JJR
than/IN
California/NNP
Plant/NNP
Protection/NNP
's/POS
average/JJ
rate/NN
of/IN
around/IN
$/$
8.63/CD
./.
And/CC
he/PRP
got/VBD
rid/JJ
of/IN
low-margin/JJ
businesses/NNS
that/WDT
just/RB
were/VBD
n't/RB
making/VBG
money/NN
for/IN
the/DT
company/NN
./.
Mr./NNP
Wathen/NNP
,/,
who/WP
says/VBZ
Pinkerton/NNP
's/POS
had/VBD
a/DT
loss/NN
of/IN
nearly/RB
$/$
8/CD
million/CD
in/IN
1987/CD
under/IN
American/NNP
Brands/NNP
,/,
boasts/VBZ
that/IN
he/PRP
's/VBZ
made/VBN
Pinkerton/NNP
's/POS
profitable/JJ
again/RB
./.
But/CC
Mr./NNP
Wathen/NNP
's/POS
team/NN
still/RB
must/MD
pay/VB
down/RP
about/RB
$/$
82/CD
million/CD
of/IN
long-term/JJ
bank/NN
debt/NN
from/IN
the/DT
acquisition/NN
within/IN
the/DT
next/JJ
four/CD
years/NNS
./.
Last/JJ
year/NN
,/,
earnings/NNS
of/IN
the/DT
combined/JJ
companies/NNS
did/VBD
n't/RB
cover/VB
debt/NN
service/NN
and/CC
Pinkerton/NNP
's/POS
was/VBD
forced/VBN
to/TO
borrow/VB
$/$
20/CD
million/CD
of/IN
subordinated/JJ
debt/NN
./.
``/``
We/PRP
would/MD
n't/RB
have/VB
had/VBN
to/TO
refinance/VB
if/IN
a/DT
lot/NN
of/IN
the/DT
problems/NNS
had/VBD
n't/RB
been/VBN
there/RB
,/,
''/''
Mr./NNP
Wathen/NNP
says/VBZ
./.
This/DT
year/NN
,/,
Mr./NNP
Wathen/NNP
says/VBZ
the/DT
firm/NN
will/MD
be/VB
able/JJ
to/TO
service/VB
debt/NN
and/CC
still/RB
turn/VB
a/DT
modest/JJ
profit/NN
./.
Now/RB
Pinkerton/NNP
's/POS
could/MD
become/VB
entangled/JJ
in/IN
a/DT
protracted/JJ
legal/JJ
fracas/NN
with/IN
its/PRP$
former/JJ
parent/NN
./.
The/DT
company/NN
recently/RB
filed/VBD
suit/NN
in/IN
state/NN
court/NN
in/IN
Los/NNP
Angeles/NNP
against/IN
American/NNP
Brands/NNP
,/,
seeking/VBG
at/IN
least/JJS
$/$
40/CD
million/CD
in/IN
damages/NNS
from/IN
the/DT
Old/NNP
Greenwich/NNP
,/,
Conn.-based/JJ
company/NN
./.
The/DT
suit/NN
alleges/VBZ
that/IN
American/NNP
Brands/NNP
misrepresented/VBD
the/DT
financial/JJ
condition/NN
of/IN
Pinkerton/NNP
's/POS
before/IN
the/DT
sale/NN
,/,
failed/VBD
to/TO
disclose/VB
pending/VBG
lawsuits/NNS
and/CC
material/JJ
contracts/NNS
in/IN
which/WDT
Pinkerton/NNP
's/POS
was/VBD
in/IN
default/NN
,/,
had/VBD
n't/RB
registered/VBN
the/DT
Pinkerton/NNP
's/POS
name/NN
and/CC
trademark/NN
in/IN
the/DT
United/NNP
Kingdom/NNP
and/CC
did/VBD
n't/RB
tell/VB
California/NNP
Plant/NNP
Protection/NNP
about/IN
some/DT
labor/NN
controversies/NNS
./.
``/``
We/PRP
have/VBP
previously/RB
had/VBN
discussions/NNS
with/IN
representatives/NNS
of/IN
Pinkerton/NNP
's/POS
Inc./NN
concerning/VBG
the/DT
sale/NN
of/IN
the/DT
company/NN
we/PRP
concluded/VBD
that/IN
we/PRP
did/VBD
not/RB
have/VB
liability/NN
under/IN
the/DT
contract/NN
,/,
''/''
says/VBZ
American/NNP
Brands/NNP
./.
``/``
As/IN
this/DT
is/VBZ
now/RB
a/DT
litigation/NN
matter/NN
,/,
we/PRP
have/VBP
no/DT
further/JJ
comment/NN
./.
''/''
And/CC
then/RB
there/EX
's/VBZ
the/DT
case/NN
of/IN
the/DT
missing/JJ
gold/NN
watch/NN
./.
The/DT
lawsuit/NN
alleges/VBZ
that/IN
an/DT
inventory/NN
of/IN
Pinkerton/NNP
's/POS
memorabilia/NNS
disclosed/VBD
that/IN
one/CD
of/IN
the/DT
watches/NNS
had/VBD
n't/RB
been/VBN
forked/VBN
over/RP
by/IN
American/NNP
Brands/NNP
./.
``/``
American/NNP
Brand/NNP
's/POS
failure/NN
to/TO
surrender/VB
the/DT
gold/NN
watch/NN
has/VBZ
damaged/VBN
new/JJ
Pinkerton/NNP
's/POS
in/IN
an/DT
amount/NN
as/RB
yet/RB
{/(
to/TO
be/VB
}/)
determined/VBN
and/CC
deprived/VBN
it/PRP
of/IN
a/DT
valuable/JJ
artifact/NN
for/IN
which/WDT
it/PRP
had/VBD
bargained/VBN
,/,
''/''
the/DT
suit/NN
charges/VBZ
./.
The/DT
key/NN
to/TO
Pinkerton/NNP
's/POS
future/NN
will/MD
be/VB
sticking/VBG
to/TO
what/WP
it/PRP
does/VBZ
best/RBS
--/:
being/VBG
a/DT
security/NN
company/NN
,/,
says/VBZ
Mr./NNP
Wathen/NNP
./.
The/DT
company/NN
is/VBZ
also/RB
renewing/VBG
its/PRP$
emphasis/NN
on/IN
investigations/NNS
,/,
particularly/RB
undercover/JJ
investigations/NNS
for/IN
corporations/NNS
./.
Although/IN
investigations/NNS
now/RB
account/VBP
for/IN
only/RB
about/RB
5/CD
%/NN
of/IN
Pinkerton/NNP
's/POS
total/JJ
revenue/NN
,/,
that/DT
side/NN
of/IN
the/DT
business/NN
has/VBZ
traditionally/RB
been/VBN
the/DT
more/RBR
``/``
glamorous/JJ
''/''
of/IN
the/DT
two/CD
and/CC
it/PRP
carries/VBZ
historical/JJ
and/CC
sentimental/JJ
value/NN
./.
Author/NN
Dashiell/NNP
Hammett/NNP
,/,
who/WP
wrote/VBD
``/``
The/DT
Maltese/JJ
Falcon/NN
,/,
''/''
was/VBD
a/DT
former/JJ
Pinkerton/NNP
's/POS
detective/NN
./.
American/NNP
Brands/NNP
``/``
just/RB
had/VBD
a/DT
different/JJ
approach/NN
,/,
''/''
Mr./NNP
Wathen/NNP
says/VBZ
./.
``/``
Their/PRP$
approach/NN
did/VBD
n't/RB
work/NN
;/:
mine/PRP
is/VBZ
./.
''/''
Farm/NN
prices/NNS
in/IN
October/NNP
edged/VBD
up/RB
0.7/CD
%/NN
from/IN
September/NNP
as/IN
raw/JJ
milk/NN
prices/NNS
continued/VBD
their/PRP$
rise/NN
,/,
the/DT
Agriculture/NNP
Department/NNP
said/VBD
./.
Milk/NN
sold/VBN
to/TO
the/DT
nation/NN
's/POS
dairy/NN
plants/NNS
and/CC
dealers/NNS
averaged/VBD
$/$
14.50/CD
for/IN
each/DT
hundred/CD
pounds/NNS
,/,
up/RB
50/CD
cents/NNS
from/IN
September/NNP
and/CC
up/RB
$/$
1.50/CD
from/IN
October/NNP
1988/CD
,/,
the/DT
department/NN
said/VBD
./.
Commercial/JJ
vegetables/NNS
,/,
led/VBN
by/IN
lettuce/NN
and/CC
tomatoes/NNS
,/,
rose/VBD
19/CD
%/NN
in/IN
October/NNP
;/:
oranges/NNS
and/CC
other/JJ
fruits/NNS
rose/VBD
5/CD
%/NN
./.
Broiler/NN
prices/NNS
fell/VBD
6.5/CD
cents/NNS
in/IN
October/NNP
to/TO
30.6/CD
cents/NNS
a/DT
pound/NN
,/,
while/IN
turkey/NN
prices/NNS
rose/VBD
1.2/CD
cents/NNS
a/DT
pound/NN
to/TO
38.5/CD
cents/NNS
./.
Egg/NN
prices/NNS
averaged/VBD
64.2/CD
cents/NNS
a/DT
dozen/NN
,/,
down/RB
0.2/CD
cent/NN
from/IN
September/NNP
./.
Hogs/NNS
rose/VBD
$/$
3.40/CD
to/TO
$/$
46.80/CD
a/DT
hundredweight/NN
in/IN
October/NNP
,/,
while/IN
beef/NN
cattle/NNS
slipped/VBD
80/CD
cents/NNS
to/TO
$/$
67.40/CD
for/IN
each/DT
hundred/CD
pounds/NNS
and/CC
calves/NNS
dropped/VBD
90/CD
cents/NNS
to/TO
$/$
90.20/CD
./.
Soybeans/NNS
averaged/VBD
$/$
5.28/CD
a/DT
bushel/NN
,/,
down/RB
42/CD
cents/NNS
from/IN
September/NNP
;/:
corn/NN
averaged/VBD
$/$
2.20/CD
,/,
down/RB
seven/CD
cents/NNS
,/,
and/CC
sorghum/NN
grain/NN
averaged/VBD
$/$
3.61/CD
for/IN
each/DT
hundred/CD
pounds/NNS
,/,
down/RB
19/CD
cents/NNS
,/,
according/VBG
to/TO
the/DT
department/NN
./.
Paramount/NNP
Communications/NNP
Inc./NNP
,/,
New/NNP
York/NNP
,/,
completed/VBD
the/DT
sale/NN
of/IN
its/PRP$
Associates/NNP
Corp./NNP
consumer/NN
and/CC
commercial/JJ
finance/NN
subsidiary/NN
to/TO
a/DT
unit/NN
of/IN
Ford/NNP
Motor/NNP
Co./NNP
for/IN
$/$
3.35/CD
billion/CD
./.
Paramount/NNP
,/,
which/WDT
agreed/VBD
to/TO
sell/VB
the/DT
unit/NN
in/IN
July/NNP
,/,
said/VBD
it/PRP
would/MD
realize/VB
net/JJ
proceeds/NNS
from/IN
the/DT
sale/NN
of/IN
$/$
2.6/CD
billion/CD
,/,
with/IN
an/DT
after-tax/JJ
gain/NN
of/IN
$/$
1.2/CD
billion/CD
./.
Paramount/NNP
said/VBD
the/DT
gain/NN
would/MD
be/VB
recorded/VBN
in/IN
its/PRP$
fourth/JJ
quarter/NN
,/,
which/WDT
ended/VBD
yesterday/NN
./.
Paramount/NNP
said/VBD
the/DT
sale/NN
``/``
completes/VBZ
the/DT
strategic/JJ
restructuring/NN
''/''
it/PRP
began/VBD
in/IN
1983/CD
,/,
and/CC
would/MD
enable/VB
it/PRP
to/TO
focus/VB
on/IN
its/PRP$
entertainment/NN
and/CC
publishing/NN
businesses/NNS
./.
Ford/NNP
said/VBD
in/IN
July/NNP
it/PRP
planned/VBD
to/TO
operate/VB
Associates/NNP
,/,
based/VBN
in/IN
Dallas/NNP
,/,
as/IN
a/DT
separate/JJ
entity/NN
in/IN
its/PRP$
Ford/NNP
Financial/NNP
Services/NNP
Group/NNP
./.
Paramount/NNP
said/VBD
Associates/NNP
has/VBZ
about/RB
$/$
14/CD
billion/CD
in/IN
total/JJ
assets/NNS
,/,
making/VBG
it/PRP
third-largest/JJ
in/IN
terms/NNS
of/IN
assets/NNS
among/IN
independent/JJ
finance/NN
companies/NNS
in/IN
the/DT
U.S/NNP
./.
Sea/NNP
Containers/NNP
Ltd./NNP
,/,
in/IN
a/DT
long-awaited/JJ
move/NN
to/TO
repel/VB
a/DT
hostile/JJ
takeover/NN
bid/NN
,/,
said/VBD
it/PRP
will/MD
sell/VB
$/$
1.1/CD
billion/CD
of/IN
assets/NNS
and/CC
use/VB
some/DT
of/IN
the/DT
proceeds/NNS
to/TO
buy/VB
about/RB
50/CD
%/NN
of/IN
its/PRP$
common/JJ
shares/NNS
for/IN
$/$
70/CD
apiece/RB
./.
Together/RB
with/IN
the/DT
3.6/CD
million/CD
shares/NNS
currently/RB
controlled/VBN
by/IN
management/NN
,/,
subsidiaries/NNS
and/CC
directors/NNS
,/,
the/DT
completed/VBN
tender/NN
offer/NN
would/MD
give/VB
Sea/NNP
Containers/NNP
a/DT
controlling/VBG
stake/NN
./.
Describing/VBG
itself/PRP
as/IN
``/``
asset/NN
rich/JJ
,/,
''/''
Sea/NNP
Containers/NNP
said/VBD
it/PRP
will/MD
move/VB
immediately/RB
to/TO
sell/VB
two/CD
ports/NNS
,/,
various/JJ
ferries/NNS
,/,
ferry/NN
services/NNS
,/,
containers/NNS
,/,
and/CC
other/JJ
investments/NNS
./.
Of/IN
the/DT
proceeds/NNS
,/,
$/$
500/CD
million/CD
will/MD
be/VB
used/VBN
to/TO
fund/VB
its/PRP$
tender/NN
offer/NN
./.
Sea/NNP
Containers/NNP
added/VBD
that/IN
the/DT
recapitalization/NN
plan/NN
will/MD
reduce/VB
its/PRP$
debt/NN
by/IN
more/JJR
than/IN
$/$
500/CD
million/CD
./.
The/DT
company/NN
,/,
which/WDT
has/VBZ
13.8/CD
million/CD
common/JJ
shares/NNS
outstanding/JJ
,/,
said/VBD
in/IN
mid-June/NNP
that/IN
it/PRP
was/VBD
considering/VBG
a/DT
restructuring/NN
to/TO
ward/VB
off/RP
a/DT
hostile/NN
takeover/NN
attempt/NN
by/IN
two/CD
European/JJ
shipping/NN
concerns/NNS
./.
In/IN
late/JJ
May/NNP
,/,
Stena/NNP
Holding/NNP
AG/NNP
and/CC
Tiphook/NNP
PLC/NNP
,/,
launched/VBD
a/DT
$/$
50-a-share/JJ
,/,
or/CC
$/$
777/CD
million/CD
,/,
tender/NN
offer/NN
for/IN
the/DT
Hamilton/NNP
,/,
Bermuda-based/JJ
Sea/NNP
Containers/NNP
./.
In/IN
mid-August/NNP
,/,
the/DT
companies/NNS
,/,
through/IN
their/PRP$
jointly/RB
owned/VBN
holding/VBG
company/NN
,/,
Temple/NNP
Holdings/NNP
Ltd./NNP
,/,
sweetened/VBD
the/DT
offer/NN
to/TO
$/$
63/CD
a/DT
share/NN
,/,
or/CC
$/$
963/CD
million/CD
./.
Officials/NNP
for/IN
Temple/NNP
declined/VBD
to/TO
comment/VB
./.
News/NN
of/IN
the/DT
restructuring/NN
plan/NN
sent/VBD
Sea/NNP
Containers/NNP
'/POS
shares/NNS
up/IN
$/$
1/CD
to/TO
$/$
62/CD
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
Walter/NNP
Kirchberger/NNP
,/,
an/DT
analyst/NN
with/IN
PaineWebber/NNP
Inc./NNP
,/,
said/VBD
that/IN
offering/VBG
holders/NNS
a/DT
higher/JJR
,/,
$/$
70-a-share/JJ
price/NN
is/VBZ
``/``
a/DT
fairly/RB
effective/JJ
method/NN
of/IN
blocking/VBG
''/''
the/DT
Stena-Tiphook/NNP
bid/NN
./.
Michael/NNP
Carstens/NNP
,/,
an/DT
analyst/NN
with/IN
Tucker/NNP
Anthony/NNP
&/CC
R.L./NNP
Day/NNP
,/,
added/VBD
that/IN
the/DT
sale/NN
of/IN
assets/NNS
would/MD
allow/VB
Sea/NNP
Containers/NNP
to/TO
focus/VB
on/IN
its/PRP$
core/JJ
container/NN
businesses/NNS
./.
For/IN
holders/NNS
who/WP
decide/VBP
not/RB
to/TO
tender/VB
their/PRP$
shares/NNS
,/,
Sea/NNP
Containers/NNP
will/MD
issue/VB
one/CD
share/NN
of/IN
preferred/JJ
stock/NN
with/IN
a/DT
stated/JJ
value/NN
of/IN
$/$
25/CD
,/,
plus/CC
a/DT
cash/NN
dividend/NN
on/IN
the/DT
common/JJ
stock/NN
./.
The/DT
company/NN
said/VBD
its/PRP$
directors/NNS
,/,
management/NN
and/CC
subsidiaries/NNS
will/MD
remain/VB
long-term/JJ
investors/NNS
and/CC
wo/MD
n't/RB
tender/VB
any/DT
of/IN
their/PRP$
shares/NNS
under/IN
the/DT
offer/NN
./.
Sea/NNP
Containers/NNP
said/VBD
the/DT
offer/NN
will/MD
proceed/VB
after/IN
the/DT
Bermuda/NNP
Supreme/NNP
Court/NNP
lifts/VBZ
or/CC
modifies/VBZ
an/DT
interim/JJ
injunction/NN
restraining/VBG
the/DT
company/NN
from/IN
buying/VBG
its/PRP$
shares/NNS
./.
That/DT
injunction/NN
resulted/VBD
from/IN
litigation/NN
between/IN
Temple/NNP
and/CC
Sea/NNP
Containers/NNP
last/JJ
May/NNP
./.
The/DT
company/NN
said/VBD
the/DT
court/NN
has/VBZ
indicated/VBN
it/PRP
will/MD
make/VB
a/DT
decision/NN
on/IN
or/CC
about/IN
Nov./NNP
27/CD
./.
Sea/NNP
Containers/NNP
will/MD
soon/RB
set/VB
a/DT
date/NN
for/IN
its/PRP$
annual/JJ
shareholder/NN
meeting/NN
to/TO
seek/VB
holder/NN
approval/NN
for/IN
the/DT
offer/NN
./.
You/PRP
'd/MD
think/VB
all/PDT
the/DT
stories/NNS
about/IN
well-heeled/JJ
communities/NNS
and/CC
developers/NNS
getting/VBG
HUD/NNP
grants/NNS
would/MD
prompt/VB
Congress/NNP
to/TO
tighten/VB
up/RP
on/IN
upscale/JJ
housing/NN
subsidies/NNS
./.
No/DT
way/NN
./.
Congress/NNP
has/VBZ
just/RB
made/VBN
it/PRP
easier/JJR
for/IN
the/DT
affluent/JJ
to/TO
qualify/VB
for/IN
insured/JJ
loans/NNS
from/IN
the/DT
deficit-ridden/JJ
Federal/NNP
Housing/NNP
Administration/NNP
./.
It/PRP
appears/VBZ
that/IN
the/DT
only/JJ
thing/NN
Congress/NNP
is/VBZ
learning/VBG
from/IN
the/DT
HUD/NNP
story/NN
is/VBZ
how/WRB
to/TO
enlarge/VB
its/PRP$
control/NN
of/IN
the/DT
honey/NN
pot/NN
going/VBG
to/TO
special/JJ
interests/NNS
./.
Right/RB
now/RB
,/,
the/DT
largest/JJS
loan/NN
the/DT
FHA/NNP
can/MD
insure/VB
in/IN
high-cost/JJ
housing/NN
markets/NNS
is/VBZ
$/$
101,250/CD
./.
Last/JJ
week/NN
,/,
housing/NN
lobbies/NNS
persuaded/VBD
Congress/NNP
to/TO
raise/VB
the/DT
ceiling/NN
to/TO
$/$
124,875/CD
,/,
making/VBG
FHA/NNP
loans/NNS
more/RBR
accessible/JJ
to/TO
the/DT
well-to-do/JJ
./.
But/CC
it/PRP
does/VBZ
that/DT
at/IN
the/DT
cost/NN
of/IN
deepening/VBG
the/DT
taxpayer/NN
's/POS
exposure/NN
if/IN
the/DT
FHA/NNP
is/VBZ
forced/VBN
to/TO
pay/VB
for/IN
more/JJR
loans/NNS
going/VBG
sour/JJ
./.
This/DT
is/VBZ
no/DT
idle/JJ
fear/NN
last/JJ

year/NN
the/DT
FHA/NNP
lost/VBD
$/$
4.2/CD
billion/CD
in/IN
loan/NN
defaults/NNS
./.
But/CC
the/DT
higher/JJR
mortgage/NN
ceiling/NN
is/VBZ
only/RB
the/DT
starter/JJ
kit/NN
for/IN
what/WP
Senator/NNP
Alan/NNP
Cranston/NNP
and/CC
Majority/NNP
Leader/NNP
George/NNP
Mitchell/NNP
have/VBP
in/IN
mind/NN
for/IN
housing/NN
./.
The/DT
Senate/NNP
Banking/NNP
Committee/NNP
will/MD
begin/VB
hearings/NNS
next/IN
week/NN
on/IN
their/PRP$
proposal/NN
to/TO
expand/VB
existing/VBG
federal/JJ
housing/NN
programs/NNS
./.
Other/JJ
Senators/NNP
want/VBP
to/TO
lower/VB
the/DT
down/JJ
payments/NNS
required/VBN
on/IN
FHA-insured/JJ
loans/NNS
./.
That/DT
would/MD
be/VB
a/DT
formula/NN
for/IN
ensuring/VBG
even/RB
more/JJR
FHA/NNP
red/JJ
ink/NN
./.
Experience/NN
has/VBZ
shown/VBN
that/IN
the/DT
most/RBS
important/JJ
element/NN
in/IN
predicting/VBG
a/DT
housing-loan/NN
default/NN
is/VBZ
the/DT
down/JJ
payment/NN
./.
Because/IN
a/DT
purchaser/NN
can/MD
use/VB
an/DT
FHA/NNP
loan/NN
to/TO
finance/VB
all/DT
points/NNS
and/CC
closing/NN
costs/NNS
,/,
the/DT
FHA/NNP
can/MD
wind/VB
up/RP
lending/VBG
more/JJR
than/IN
a/DT
house/NN
is/VBZ
worth/IN
./.
If/IN
housing/NN
prices/NNS
continue/VBP
to/TO
fall/VB
,/,
many/JJ
borrowers/NNS
would/MD
be/VB
better/JJR
off/RP
walking/VBG
away/RB
from/IN
their/PRP$
homes/NNS
and/CC
leaving/VBG
taxpayers/NNS
with/IN
the/DT
losses/NNS
./.
Much/RB
the/DT
same/JJ
thing/NN
happened/VBD
with/IN
busted/JJ
S&Ls/NNS
,/,
a/DT
problem/NN
Congress/NNP
just/RB
``/``
solved/VBD
''/''
with/IN
a/DT
$/$
166/CD
billion/CD
bailout/NN
./.
We/PRP
hear/VBP
that/IN
HUD/NNP
Secretary/NNP
Jack/NNP
Kemp/NNP
is/VBZ
toying/VBG
with/IN
going/VBG
along/IN
with/IN
some/DT
of/IN
the/DT
Cranston-Mitchell/NNP
proposals/NNS
./.
That/DT
sounds/VBZ
like/IN
a/DT
formula/NN
for/IN
ensuring/VBG
that/IN
he/PRP
gets/VBZ
dragged/VBN
into/IN
the/DT
next/JJ
HUD/NNP
tar/NN
pit/NN
./.
A/DT
group/NN
of/IN
27/CD
Senators/NNPS
has/VBZ
written/VBN
Mr./NNP
Kemp/NNP
urging/VBG
him/PRP
to/TO
reject/VB
Cranston-Mitchell/NNP
and/CC
focus/VB
on/IN
programs/NNS
that/WDT
empower/VBP
the/DT
poor/JJ
rather/RB
than/IN
create/VB
vast/JJ
new/JJ
government/NN
obligations/NNS
./.
But/CC
even/RB
if/IN
he/PRP
agrees/VBZ
,/,
Mr./NNP
Kemp/NNP
does/VBZ
n't/RB
write/VB
the/DT
nation/NN
's/POS
housing/NN
law/NN
--/:
Congress/NNP
does/VBZ
./.
And/CC
the/DT
majority/NN
of/IN
Members/NNS
cynically/RB
view/VBP
the/DT
current/JJ
discrediting/NN
of/IN
HUD/NNP
as/IN
mainly/RB
a/DT
chance/NN
to/TO
shove/VB
through/RP
their/PRP$
own/JJ
slate/NN
of/IN
projects/NNS
./.
Exhibit/NN
A/NN
is/VBZ
last/JJ
week/NN
's/POS
House/NNP
vote/NN
to/TO
fund/VB
40/CD
pet/JJ
projects/NNS
out/IN
of/IN
the/DT
same/JJ
discretionary/JJ
fund/NN
that/WDT
is/VBZ
at/IN
the/DT
heart/NN
of/IN
the/DT
HUD/NNP
scandal/NN
./.
None/NN
of/IN
the/DT
grants/NNS
had/VBD
been/VBN
requested/VBN
by/IN
HUD/NNP
,/,
judged/VBN
competitively/RB
or/CC
were/VBD
the/DT
subject/NN
of/IN
a/DT
single/JJ
hearing/NN
./.
More/JJR
and/CC
more/JJR
observers/NNS
now/RB
realize/VBP
that/IN
the/DT
key/NN
to/TO
ending/VBG
future/JJ
HUD/NNP
scandals/NNS
lies/VBZ
in/IN
forcing/VBG
Congress/NNP
to/TO
clean/VB
up/RP
its/PRP$
own/JJ
act/NN
./.
This/DT
week/NN
,/,
a/DT
Baltimore/NNP
Sun/NNP
editorial/NN
said/VBD
the/DT
Lantos/NNP
subcommittee/NN
on/IN
HUD/NNP
should/MD
forget/VB
about/IN
Sam/NNP
Pierce/NNP
's/POS
testimony/NN
for/IN
the/DT
moment/NN
and/CC
call/VB
some/DT
other/JJ
witnesses/NNS
:/:
the/DT
various/JJ
congressional/JJ
sponsors/NNS
of/IN
the/DT
40/CD
pork-barrel/JJ
projects/NNS
./.
The/DT
Sun/NNP
concluded/VBD
that/IN
Mr./NNP
Pierce/NNP
is/VBZ
only/RB
part/NN
of/IN
the/DT
problem/NN
--/:
and/CC
a/DT
part/NN
that/WDT
's/VBZ
gone/VBN|JJ
./.
``/``
If/IN
HUD/NNP
is/VBZ
to/TO
be/VB
reformed/VBN
,/,
''/''
it/PRP
concluded/VBD
,/,
Members/NNPS
of/IN
Congress/NNP
will/MD
``/``
have/VB
to/TO
start/VB
looking/VBG
into/IN
,/,
and/CC
doing/VBG
something/NN
about/IN
,/,
the/DT
practices/NNS
of/IN
their/PRP$
colleagues/NNS
./.
''/''
Of/IN
course/NN
,/,
self-reform/NN
is/VBZ
about/RB
the/DT
last/JJ
thing/NN
this/DT
Congress/NNP
is/VBZ
interested/JJ
in/IN
./.
Proponents/NNS
of/IN
expanding/VBG
FHA/NNP
programs/NNS
say/VBP
they/PRP
merely/RB
want/VBP
to/TO
help/VB
home/NN
buyers/NNS
who/WP
are/VBP
frozen/VBN
out/IN
of/IN
high-priced/JJ
markets/NNS
./.
But/CC
the/DT
FHA/NNP
program/NN
is/VBZ
hemorrhaging/VBG
bad/JJ
loans/NNS
./.
Jack/NNP
Kemp/NNP
has/VBZ
submitted/VBN
a/DT
package/NN
of/IN
reforms/NNS
,/,
and/CC
they/PRP
are/VBP
surely/RB
headed/VBN
for/IN
the/DT
Capitol/NNP
Hill/NNP
sausage-grinder/NN
./.
Like/IN
the/DT
S&L/NNP
mess/NN
before/IN
it/PRP
,/,
this/DT
is/VBZ
a/DT
problem/NN
Congress/NNP
should/MD
be/VB
solving/VBG
,/,
not/RB
ignoring/VBG
./.
Gillette/NNP
Co./NNP
,/,
Boston/NNP
,/,
said/VBD
it/PRP
is/VBZ
planning/VBG
to/TO
restructure/VB
its/PRP$
South/JJ
African/JJ
subsidiary/NN
./.
Under/IN
the/DT
plan/NN
,/,
Gillette/NNP
South/NNP
Africa/NNP
will/MD
sell/VB
manufacturing/NN
facilities/NNS
in/IN
Springs/NNP
,/,
South/NNP
Africa/NNP
,/,
and/CC
its/PRP$
business/NN
in/IN
toiletries/NNS
and/CC
plastic/NN
bags/NNS
to/TO
Twins/NNP
Pharmaceuticals/NNP
Ltd./NNP
,/,
an/DT
affiliate/NN
of/IN
Anglo/NNP
American/NNP
Corp./NNP
,/,
a/DT
South/JJ
African/JJ
company/NN
./.
Terms/NNS
were/VBD
not/RB
disclosed/VBN
./.
A/DT
final/JJ
agreement/NN
has/VBZ
not/RB
been/VBN
signed/VBN
,/,
and/CC
the/DT
moves/NNS
will/MD
not/RB
have/VB
a/DT
material/JJ
effect/NN
on/IN
the/DT
company/NN
,/,
Gillette/NNP
said/VBD
./.
The/DT
company/NN
said/VBD
it/PRP
is/VBZ
part/NN
of/IN
a/DT
continuing/VBG
world-wide/JJ
restructuring/NN
in/IN
which/WDT
it/PRP
has/VBZ
downsized/VBN
or/CC
sold/VBN
operations/NNS
in/IN
several/JJ
countries/NNS
./.
Gillette/NNP
said/VBD
its/PRP$
continued/JJ
presence/NN
in/IN
South/NNP
Africa/NNP
``/``
enables/VBZ
it/PRP
to/TO
make/VB
meaningful/JJ
contributions/NNS
to/TO
South/JJ
African/JJ
society/NN
,/,
to/TO
the/DT
lives/NNS
of/IN
its/PRP$
employees/NNS
and/CC
to/TO
the/DT
communities/NNS
in/IN
which/WDT
it/PRP
operates/VBZ
./.
''/''
Gillette/NNP
South/NNP
Africa/NNP
employs/VBZ
about/RB
250/CD
people/NNS
./.
About/RB
60/CD
%/NN
of/IN
the/DT
work/NN
force/NN
will/MD
continue/VB
with/IN
Gillette/NNP
or/CC
transfer/VB
to/TO
Twins/NNP
Pharmaceuticals/NNPS
,/,
the/DT
company/NN
said/VBD
./.
The/DT
Soviet/JJ
legislature/NN
approved/VBD
a/DT
1990/CD
budget/NN
yesterday/NN
that/WDT
halves/VBZ
its/PRP$
huge/JJ
deficit/NN
with/IN
cuts/NNS
in/IN
defense/NN
spending/NN
and/CC
capital/NN
outlays/NNS
while/IN
striving/VBG
to/TO
improve/VB
supplies/NNS
to/TO
frustrated/JJ
consumers/NNS
./.
The/DT
vote/NN
to/TO
approve/VB
was/VBD
A/DT
proposal/NN
to/TO
raise/VB
prices/NNS
of/IN
beer/NN
,/,
tobacco/NN
and/CC
luxuries/NNS
was/VBD
rejected/VBN
338-44/RB
./.
Soviet/NNP
President/NNP
Mikhail/NNP
S./NNP
Gorbachev/NNP
told/VBD
the/DT
legislators/NNS
they/PRP
had/VBD
made/VBN
a/DT
good/JJ
start/NN
,/,
but/CC
that/IN
the/DT
most/RBS
difficult/JJ
work/NN
was/VBD
still/RB
ahead/RB
./.
The/DT
Tass/NNP
news/NN
agency/NN
said/VBD
the/DT
1990/CD
budget/NN
anticipates/VBZ
income/NN
of/IN
429.9/CD
billion/CD
rubles/NNS
US$/$
693.4/CD
billion/CD
489.9/CD
billion/CD
rubles/NNS
US$/$
790.2/CD
billion/CD
Those/DT
figures/NNS
are/VBP
almost/RB
exactly/RB
what/WP
the/DT
government/NN
proposed/VBD
to/TO
legislators/NNS
in/IN
September/NNP
./.
If/IN
the/DT
government/NN
can/MD
stick/VB
with/IN
them/PRP
,/,
it/PRP
will/MD
be/VB
able/JJ
to/TO
halve/VB
this/DT
year/NN
's/POS
120/CD
billion/CD
ruble/NN
US$/$
193/CD
billion/CD
deficit/NN
./.
Officials/NNS
proposed/VBD
a/DT
cut/NN
in/IN
the/DT
defense/NN
budget/NN
this/DT
year/NN
to/TO
70.9/CD
billion/CD
rubles/NNS
US$/$
114.3/CD
billion/CD
77.3/CD
billion/CD
rubles/NNS
US$/$
125/CD
billion/CD
large/JJ
cuts/NNS
in/IN
outlays/NNS
for/IN
new/JJ
factories/NNS
and/CC
equipment/NN
./.
Tass/NNP
said/VBD
the/DT
final/JJ
budget/NN
and/CC
economic/JJ
plan/NN
calls/VBZ
for/IN
a/DT
sharp/JJ
increase/NN
in/IN
the/DT
production/NN
of/IN
consumer/NN
goods/NNS
./.
Trial/NN
and/CC
Terror/NN
At/IN
times/NNS
I/PRP
sequester/VBP
my/PRP$
mind/NN
When/WRB
I/PRP
must/MD
think/VB
with/IN
precision/NN
,/,
Detached/VBN
from/IN
all/DT
other/JJ
thoughts/NNS
While/IN
trying/VBG
to/TO
reach/VB
a/DT
decision/NN
./.
But/CC
often/RB
nothing/NN
's/VBZ
resolved/VBN
,/,
To/TO
my/PRP$
frustration/NN
and/CC
fury/NN
:/:
With/IN
pros/NNS
and/CC
cons/NNS
in/IN
limbo/NN
,/,
I/PRP
feel/VBP
like/IN
a/DT
hung/JJ
jury/NN
./.
--/:
Arnold/NNP
J./NNP
Zarett/NNP
./.
Daffynition/NN
Rodeo/NN
applause/NN
:/:
broncs/NNS
cheer/NN
./.
--/:
Marvin/NNP
Alisky/NNP
./.
Ocean/NNP
Drilling/NNP
&/CC
Exploration/NNP
Co./NNP
will/MD
sell/VB
its/PRP$
contract-drilling/NN
business/NN
,/,
and/CC
took/VBD
a/DT
$/$
50.9/CD
million/CD
loss/NN
from/IN
discontinued/VBN
operations/NNS
in/IN
the/DT
third/JJ
quarter/NN
because/IN
of/IN
the/DT
planned/JJ
sale/NN
./.
The/DT
New/NNP
Orleans/NNP
oil/NN
and/CC
gas/NN
exploration/NN
and/CC
diving/NN
operations/NNS
company/NN
added/VBD
that/IN
it/PRP
does/VBZ
n't/RB
expect/VB
any/DT
further/JJ
adverse/JJ
financial/JJ
impact/NN
from/IN
the/DT
restructuring/NN
./.
In/IN
the/DT
third/JJ
quarter/NN
,/,
the/DT
company/NN
,/,
which/WDT
is/VBZ
61%-owned/JJ
by/IN
Murphy/NNP
Oil/NNP
Corp./NNP
of/IN
Arkansas/NNP
,/,
had/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
46.9/CD
million/CD
,/,
or/CC
91/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
a/DT
restated/JJ
loss/NN
of/IN
$/$
9/CD
million/CD
,/,
or/CC
18/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
ago/RB
./.
The/DT
latest/JJS
period/NN
had/VBD
profit/NN
from/IN
continuing/JJ
operations/NNS
of/IN
$/$
4/CD
million/CD
./.
Revenue/NN
gained/VBD
13/CD
%/NN
to/TO
$/$
77.3/CD
million/CD
from/IN
$/$
68.5/CD
million/CD
./.
Ocean/NNP
Drilling/NNP
said/VBD
it/PRP
will/MD
offer/VB
15/CD
%/NN
to/TO
20/CD
%/NN
of/IN
the/DT
contract-drilling/NN
business/NN
through/IN
an/DT
initial/JJ
public/JJ
offering/NN
in/IN
the/DT
near/JJ
future/NN
./.
It/PRP
has/VBZ
long/RB
been/VBN
rumored/VBN
that/IN
Ocean/NNP
Drilling/NNP
would/MD
sell/VB
the/DT
unit/NN
to/TO
concentrate/VB
on/IN
its/PRP$
core/NN
oil/NN
and/CC
gas/NN
business/NN
./.
Ocean/NNP
Drilling/NNP
said/VBD
it/PRP
wo/MD
n't/RB
hold/VB
any/DT
shares/NNS
of/IN
the/DT
new/JJ
company/NN
after/IN
the/DT
restructuring/VBG
./.
After/IN
20/CD
years/NNS
of/IN
pushing/VBG
labor/NN
proposals/NNS
to/TO
overhaul/VB
the/DT
nation/NN
's/POS
health-care/NN
system/NN
,/,
Bert/NNP
Seidman/NNP
of/IN
the/DT
AFL-CIO/NNP
is/VBZ
finding/VBG
interest/NN
from/IN
an/DT
unlikely/JJ
quarter/NN
:/:
big/JJ
business/NN
./.
Corporate/JJ
leaders/NNS
,/,
frustrated/VBN
by/IN
double-digit/JJ
increases/NNS
in/IN
health-care/NN
costs/NNS
,/,
are/VBP
beginning/VBG
to/TO
sound/VB
like/IN
liberal/JJ
Democrats/NNPS
./.
Failure/NN
to/TO
check/VB
rising/VBG
medical/JJ
costs/NNS
ultimately/RB
could/MD
``/``
lead/VB
some/DT
of/IN
us/PRP
who/WP
today/NN
are/VBP
free-market/NN
advocates/NNS
to/TO
re-examine/VB
our/PRP$
thinking/NN
and/CC
positions/NNS
with/IN
respect/NN
to/TO
government-sponsored/JJ
national/JJ
health/NN
insurance/NN
,/,
''/''
Arthur/NNP
Puccini/NNP
,/,
a/DT
General/NNP
Electric/NNP
Co./NNP
vice/NN
president/NN
,/,
warned/VBD
earlier/RBR
this/DT
year/NN
./.
The/DT
pocketbook/NN
impact/NN
of/IN
health/NN
benefits/NNS
has/VBZ
driven/VBN
business/NN
and/CC
labor/NN
to/TO
a/DT
surprising/JJ
consensus/NN
./.
Both/DT
the/DT
AFL-CIO/NNP
and/CC
the/DT
National/NNP
Association/NNP
of/IN
Manufacturers/NNPS
are/VBP
calling/VBG
for/IN
measures/NNS
to/TO
control/VB
rising/VBG
costs/NNS
,/,
improve/VB
quality/NN
and/CC
provide/VB
care/NN
to/TO
the/DT
31/CD
million/CD
Americans/NNPS
who/WP
currently/RB
lack/VBP
health/NN
insurance/NN
./.
Agreement/NN
on/IN
these/DT
points/NNS
is/VBZ
a/DT
long/JJ
way/NN
from/IN
a/DT
specific/JJ
program/NN
,/,
and/CC
nobody/NN
expects/VBZ
the/DT
U.S./NNP
to/TO
rush/VB
toward/IN
radical/JJ
restructuring/NN
of/IN
the/DT
health-care/NN
system/NN
./.
But/CC
there/EX
are/VBP
signs/NNS
that/IN
labor-management/JJ
cooperation/NN
could/MD
change/VB
the/DT
politics/NNS
of/IN
health-care/NN
legislation/NN
and/CC
the/DT
economics/NNS
of/IN
medicine/NN
./.
``/``
I/PRP
ca/MD
n't/RB
remember/VB
a/DT
time/NN
when/WRB
virtually/RB
everyone/NN
can/MD
agree/VB
on/IN
what/WP
the/DT
problem/NN
is/VBZ
,/,
''/''
says/VBZ
Mr./NNP
Seidman/NNP
,/,
who/WP
heads/VBZ
the/DT
AFL-CIO/NNP
's/POS
department/NN
dealing/VBG
with/IN
health/NN
matters/NNS
./.
Because/IN
the/DT
Bush/NNP
administration/NN
is/VBZ
n't/RB
taking/VBG
the/DT
initiative/NN
on/IN
health/NN
issues/NNS
,/,
business/NN
executives/NNS
are/VBP
dealing/VBG
with/IN
congressional/JJ
Democrats/NNPS
who/WP
champion/VBP
health-care/NN
revision/NN
./.
``/``
Business/NN
across/IN
the/DT
country/NN
is/VBZ
spending/VBG
more/JJR
time/NN
addressing/VBG
this/DT
issue/NN
,/,
''/''
says/VBZ
Sen./NNP
Edward/NNP
Kennedy/NNP
D./NNP
,/,
Mass/NNP
./.
``/``
It/PRP
's/VBZ
a/DT
bottom-line/JJ
issue/NN
./.
''/''
Business/NN
complained/VBD
earlier/RBR
this/DT
year/NN
when/WRB
Sen./NNP
Kennedy/NNP
introduced/VBD
a/DT
bill/NN
that/WDT
would/MD
require/VB
employers/NNS
to/TO
provide/VB
a/DT
minimum/JJ
level/NN
of/IN
health/NN
insurance/NN
to/TO
workers/NNS
but/CC
does/VBZ
n't/RB
contain/VB
cost-control/JJ
measures/NNS
./.
Partly/RB
in/IN
response/NN
,/,
a/DT
bipartisan/JJ
group/NN
of/IN
senators/NNS
from/IN
the/DT
finance/NN
and/CC
labor/NN
committees/NNS
is/VBZ
drafting/VBG
a/DT
plan/NN
to/TO
attract/VB
broader/JJR
support/NN
./.
It/PRP
will/MD
feature/VB
a/DT
cost-containment/JJ
provision/NN
designed/VBN
to/TO
keep/VB
expanded/JJ
benefits/NNS
from/IN
fueling/VBG
higher/JJR
care/NN
prices/NNS
./.
At/IN
11.1/CD
%/NN
of/IN
gross/JJ
national/JJ
product/NN
,/,
U.S./NNP
health/NN
costs/NNS
already/RB
are/VBP
the/DT
highest/JJS
in/IN
the/DT
world/NN
./.
By/IN
contrast/NN
,/,
Japan/NNP
's/POS
equal/VBP
6.7/CD
%/NN
of/IN
GNP/NN
,/,
a/DT
nation/NN
's/POS
total/JJ
output/NN
of/IN
goods/NNS
and/CC
services/NNS
./.
Management/NN
and/CC
labor/NN
worry/VBP
that/IN
the/DT
gap/NN
makes/VBZ
U.S./NNP
companies/NNS
less/RBR
competitive/JJ
./.
Chrysler/NNP
Corp./NNP
estimates/VBZ
that/IN
health/NN
costs/NNS
add/VBP
$/$
700/CD
to/TO
the/DT
price/NN
of/IN
each/DT
of/IN
its/PRP$
cars/NNS
,/,
about/RB
$/$
300/CD
to/TO
$/$
500/CD
more/JJR
per/IN
car/NN
than/IN
foreign/JJ
competitors/NNS
pay/VBP
for/IN
health/NN
./.
``/``
The/DT
cost/NN
of/IN
health/NN
care/NN
is/VBZ
eroding/VBG
standards/NNS
of/IN
living/NN
and/CC
sapping/VBG
industrial/JJ
strength/NN
,/,
''/''
complains/VBZ
Walter/NNP
Maher/NNP
,/,
a/DT
Chrysler/NNP
health-and-benefits/JJ
specialist/NN
./.
Labor/NN
is/VBZ
upset/JJ
because/IN
many/JJ
companies/NNS
are/VBP
using/VBG
higher/JJR
employee/NN
insurance/NN
premiums/NNS
,/,
deductibles/NNS
and/CC
co-payments/NNS
to/TO
deflect/VB
surging/JJ
medical/JJ
costs/NNS
to/TO
workers/NNS
./.
Health/NNP
benefits/NNS
are/VBP
contentious/JJ
issues/NNS
in/IN
the/DT
strikes/NNS
against/IN
Pittston/NNP
Co./NNP
and/CC
Nynex/NNP
Corp/NNP
./.
In/IN
their/PRP$
new/JJ
contract/NN
this/DT
year/NN
,/,
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
Co./NNP
and/CC
the/DT
Communications/NNP
Workers/NNP
of/IN
America/NNP
agreed/VBD
to/TO
look/VB
for/IN
``/``
prompt/JJ
and/CC
lasting/JJ
national/JJ
solutions/NNS
''/''
to/TO
rising/VBG
health-care/NN
costs/NNS
./.
Some/DT
analysts/NNS
are/VBP
cynical/JJ
about/IN
the/DT
new/JJ
corporate/JJ
interest/NN
in/IN
health-care/NN
overhaul/NN
./.
Carl/NNP
Schramm/NNP
,/,
president/NN
of/IN
the/DT
Health/NNP
Insurance/NNP
Association/NNP
of/IN
America/NNP
,/,
scoffs/VBZ
at/IN
``/``
capitalists/NNS
who/WP
want/VBP
to/TO
socialize/VB
the/DT
entire/JJ
financing/NN
system/NN
''/''
for/IN
health/NN
./.
``/``
They/PRP
hope/VBP
they/PRP
can/MD
buy/VB
some/DT
government/NN
cost/NN
discipline/NN
,/,
''/''
but/CC
this/DT
is/VBZ
a/DT
false/JJ
hope/NN
,/,
Mr./NNP
Schramm/NNP
says/VBZ
./.
He/PRP
asserts/VBZ
that/DT
government/NN
has/VBZ
done/VBN
an/DT
even/RB
worse/JJR
job/NN
of/IN
controlling/VBG
its/PRP$
health/NN
bill/NN
than/IN
business/NN
./.
So/RB
far/RB
neither/CC
the/DT
Bush/NNP
administration/NN
nor/CC
Congress/NNP
is/VBZ
prepared/VBN
to/TO
lead/VB
the/DT
way/NN
toward/IN
revamping/VBG
health/NN
care/NN
./.
The/DT
administration/NN
lacks/VBZ
a/DT
comprehensive/JJ
health-care/NN
policy/NN
./.
Congress/NNP
still/RB
is/VBZ
struggling/VBG
to/TO
dismantle/VB
the/DT
unpopular/JJ
Catastrophic/NNP
Care/NNP
Act/NNP
of/IN
1988/CD
,/,
which/WDT
boosted/VBD
benefits/NNS
for/IN
the/DT
elderly/JJ
and/CC
taxed/VBD
them/PRP
to/TO
pay/VB
for/IN
the/DT
new/JJ
coverage/NN
./.
A/DT
bipartisan/JJ
commission/NN
established/VBN
by/IN
Congress/NNP
and/CC
headed/VBN
by/IN
Sen./NNP
John/NNP
Rockefeller/NNP
D./NNP
,/,
W.Va/NNP
./.
new/JJ
plans/NNS
for/IN
dealing/VBG
with/IN
the/DT
uninsured/JJ
and/CC
long-term/JJ
care/NN
for/IN
the/DT
elderly/JJ
by/IN
next/JJ
March/NNP
1/CD
./.
A/DT
quadrennial/JJ
commission/NN
appointed/VBN
by/IN
Health/NNP
and/CC
Human/NNP
Services/NNP
Secretary/NNP
Louis/NNP
Sullivan/NNP
is/VBZ
taking/VBG
a/DT
broad/JJ
look/NN
at/IN
the/DT
economics/NNS
of/IN
Medicare/NNP
for/IN
the/DT
elderly/JJ
,/,
Medicaid/NNP
for/IN
the/DT
poor/JJ
and/CC
the/DT
health/NN
system/NN
in/IN
general/NN
./.
It/PRP
is/VBZ
expected/VBN
to/TO
report/VB
next/JJ
summer/NN
./.
``/``
No/DT
magic/JJ
bullet/NN
will/MD
be/VB
discovered/VBN
next/JJ
year/NN
,/,
an/DT
election/NN
year/NN
,/,
''/''
says/VBZ
Rep./NNP
Fortney/NNP
Stark/NNP
D./NNP
,/,
Calif/NNP
./.
1991/CD
could/MD
be/VB
a/DT
window/NN
for/IN
action/NN
./.
The/DT
pressure/NN
for/IN
change/NN
will/MD
rise/VB
with/IN
costs/NNS
./.
``/``
I/PRP
think/VBP
employers/NNS
are/VBP
really/RB
going/VBG
to/TO
be/VB
the/DT
ones/NNS
to/TO
push/VB
for/IN
major/JJ
change/NN
,/,
''/''
says/VBZ
Sharon/NNP
Canner/NNP
,/,
a/DT
health/NN
expert/NN
at/IN
NAM/NNP
./.
Any/DT
major/JJ
attempt/NN
to/TO
revamp/VB
the/DT
health-care/NN
system/NN
is/VBZ
likely/JJ
to/TO
trigger/VB
opposition/NN
from/IN
politically/RB
powerful/JJ
interest/NN
groups/NNS
,/,
particularly/RB
the/DT
American/NNP
Medical/NNP
Association/NNP
,/,
and/CC
perhaps/RB
from/IN
the/DT
public/NN
as/RB
well/RB
,/,
if/IN
Congress/NNP
takes/VBZ
steps/NNS
that/IN
patients/NNS
fear/VBP
will/MD
limit/VB
the/DT
availability/NN
of/IN
care/NN
./.
The/DT
NAM/NNP
embraces/VBZ
efforts/NNS
,/,
which/WDT
both/CC
the/DT
administration/NN
and/CC
the/DT
medical/JJ
profession/NN
have/VB
begun/VBN
,/,
to/TO
measure/VB
the/DT
effectiveness/NN
of/IN
medical/JJ
treatments/NNS
and/CC
then/RB
to/TO
draft/VB
medical-practice/NN
guidelines/NNS
./.
Advocates/NNS
hope/VBP
that/IN
such/JJ
standards/NNS
will/MD
improve/VB
treatment/NN
while/IN
limiting/VBG
unnecessary/JJ
tests/NNS
and/CC
medical/JJ
procedures/NNS
./.
HHS/NNP
Secretary/NNP
Sullivan/NNP
estimates/VBZ
that/IN
as/RB
much/JJ
as/IN
25/CD
%/NN
of/IN
the/DT
medical/JJ
procedures/NNS
performed/VBN
each/DT
year/NN
may/MD
be/VB
inappropriate/JJ
or/CC
unnecessary/JJ
./.
Limiting/VBG
care/NN
wo/MD
n't/RB
be/VB
easy/JJ
or/CC
popular/JJ
./.
``/``
To/TO
slow/VB
the/DT
rise/NN
in/IN
total/JJ
spending/NN
,/,
it/PRP
will/MD
be/VB
necessary/JJ
to/TO
reduce/VB
per-capita/JJ
use/NN
of/IN
services/NNS
,/,
''/''
the/DT
NAM/NNP
warns/VBZ
in/IN
a/DT
policy/NN
statement/NN
./.
This/DT
will/MD
``/``
require/VB
us/PRP
to/TO
define/VB
--/:
and/CC
redefine/VB
--/:
what/WP
is/VBZ
`/``
necessary/JJ
'/''
or/CC
`/``
appropriate/JJ
'/''
care/NN
./.
This/DT
involves/VBZ
trade-offs/NNS
and/CC
{/(
it/PRP
the/DT
grain/NN
of/IN
existing/VBG
consumer/NN
and/CC
even/RB
provider/NN
conceptions/NNS
of/IN
what/WP
is/VBZ
`/``
necessary/JJ
./.
'/''
''/''
The/DT
AFL-CIO/NNP
also/RB
embraces/VBZ
treatment/NN
guidelines/NNS
./.
In/IN
addition/NN
,/,
it/PRP
's/VBZ
toying/VBG
with/IN
an/DT
approach/NN
that/WDT
would/MD
impose/VB
health-expenditure/JJ
ceilings/NNS
or/CC
budgets/NNS
on/IN
the/DT
government/NN
as/IN
a/DT
whole/NN
and/CC
on/IN
individual/JJ
states/NNS
as/IN
a/DT
way/NN
to/TO
slow/VB
health-care/NN
spending/NN
./.
At/IN
a/DT
meeting/NN
here/RB
on/IN
Nov./NNP
15/CD
,/,
the/DT
labor/NN
federation/NN
plans/NNS
to/TO
launch/VB
a/DT
major/JJ
effort/NN
to/TO
build/VB
grass-roots/JJ
support/NN
for/IN
health-care/NN
overhaul/NN
./.
Stelco/NNP
Inc./NNP
said/VBD
it/PRP
plans/VBZ
to/TO
shut/VB
down/RP
three/CD
Toronto-area/JJ
plants/NNS
,/,
moving/VBG
their/PRP$
fastener/NN
operations/NNS
to/TO
a/DT
leased/VBN
facility/NN
in/IN
Brantford/NNP
,/,
Ontario/NNP
./.
The/DT
company/NN
said/VBD
the/DT
fastener/NN
business/NN
``/``
has/VBZ
been/VBN
under/IN
severe/JJ
cost/NN
pressures/NNS
for/IN
some/DT
time/NN
./.
''/''
The/DT
fasteners/NNS
,/,
nuts/NNS
and/CC
bolts/NNS
,/,
are/VBP
sold/VBN
to/TO
the/DT
North/JJ
American/JJ
auto/NN
market/NN
./.
A/DT
company/NN
spokesman/NN
declined/VBD
to/TO
estimate/VB
the/DT
impact/NN
of/IN
the/DT
closures/NNS
on/IN
earnings/NNS
./.
He/PRP
said/VBD
the/DT
new/JJ
facility/NN
will/MD
employ/VB
500/CD
of/IN
the/DT
existing/VBG
600/CD
employees/NNS
./.
The/DT
steelmaker/NN
employs/VBZ
about/RB
16,000/CD
people/NNS
./.
Stelco/NN
said/VBD
it/PRP
has/VBZ
an/DT
option/NN
to/TO
lease/VB
a/DT
350,000-square-foot/JJ
building/NN
in/IN
Brantford/NNP
and/CC
proposes/VBZ
to/TO
spend/VB
24.5/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
20.9/CD
million/CD
the/DT
facility/NN
./.
The/DT
three/CD
existing/VBG
plants/NNS
and/CC
their/PRP$
land/NN
will/MD
be/VB
sold/VBN
./.
First/NNP
Security/NNP
Corp./NNP
said/VBD
it/PRP
tentatively/RB
agreed/VBD
to/TO
acquire/VB
Deseret/NNP
Bancorp./NNP
for/IN
stock/NN
valued/VBN
at/IN
about/RB
$/$
18/CD
million/CD
./.
Terms/NNS
call/VBP
for/IN
First/NNP
Security/NNP
to/TO
issue/VB
about/RB
0.55/CD
share/NN
of/IN
its/PRP$
stock/NN
for/IN
each/DT
Deseret/NNP
share/NN
held/VBN
,/,
or/CC
a/DT
total/NN
of/IN
about/RB
550,000/CD
First/NNP
Security/NNP
shares/NNS
./.
It/PRP
has/VBZ
about/RB
12.3/CD
million/CD
shares/NNS
outstanding/JJ
./.
Deseret/NNP
,/,
with/IN
about/RB
$/$
100/CD
million/CD
in/IN
assets/NNS
,/,
is/VBZ
the/DT
parent/NN
of/IN
the/DT
Deseret/NNP
Bank/NNP
,/,
which/WDT
has/VBZ
six/CD
offices/NNS
and/CC
headquarters/NNS
at/IN
Pleasant/NNP
Grove/NNP
,/,
Utah/NNP
./.
The/DT
purchase/NN
price/NN
is/VBZ
equal/JJ
to/TO
about/RB
1.65/CD
times/NNS
Deseret/NNP
's/VBZ
roughly/RB
$/$
10.7/CD
million/CD
book/NN
value/NN
,/,
or/CC
assets/NNS
less/CC
liabilities/NNS
./.
Salt/NNP
Lake/NNP
City-based/JJ
First/NNP
Security/NNP
,/,
with/IN
$/$
5.4/CD
billion/CD
in/IN
assets/NNS
,/,
said/VBD
the/DT
agreement/NN
is/VBZ
subject/JJ
to/TO
shareholder/NN
and/CC
regulatory/JJ
approval/NN
,/,
and/CC
that/IN
it/PRP
hopes/VBZ
to/TO
complete/VB
the/DT
transaction/NN
early/RB
next/JJ
year/NN
./.
Georgia-Pacific/NNP
Corp./NNP
's/POS
unsolicited/JJ
$/$
3.19/CD
billion/CD
bid/NN
for/IN
Great/NNP
Northern/NNP
Nekoosa/NNP
Corp./NNP
was/VBD
hailed/VBN
by/IN
Wall/NNP
Street/NNP
despite/IN
a/DT
cool/JJ
reception/NN
by/IN
the/DT
target/NN
company/NN
./.
William/NNP
R./NNP
Laidig/NNP
,/,
Nekoosa/NNP
's/POS
chairman/NN
,/,
chief/JJ
executive/JJ
officer/NN
and/CC
president/NN
,/,
characterized/VBD
the/DT
$/$
58-a-share/JJ
bid/NN
as/IN
``/``
uninvited/JJ
''/''
and/CC
said/VBD
Nekoosa/NNP
's/POS
board/NN
would/MD
consider/VB
the/DT
offer/NN
``/``
in/IN
due/JJ
course/NN
./.
''/''
T./NNP
Marshall/NNP
Hahn/NNP
Jr./NNP
,/,
Georgia-Pacific/NNP
's/POS
chairman/NN
and/CC
chief/JJ
executive/NN
,/,
said/VBD
in/IN
an/DT
interview/NN
that/IN
all/DT
terms/NNS
of/IN
the/DT
offer/NN
are/VBP
negotiable/JJ
./.
He/PRP
added/VBD
that/IN
he/PRP
had/VBD
spoken/VBN
with/IN
Mr./NNP
Laidig/NNP
,/,
whom/WP
he/PRP
referred/VBD
to/TO
as/IN
a/DT
friend/NN
,/,
by/IN
telephone/NN
Monday/NNP
evening/NN
./.
``/``
I/PRP
'm/VBP
hopeful/JJ
that/IN
we/PRP
'll/MD
have/VB
further/JJ
discussions/NNS
,/,
''/''
Mr./NNP
Hahn/NNP
said/VBD
./.
On/IN
Wall/NNP
Street/NNP
,/,
takeover/NN
stock/NN
traders/NNS
bid/VBD
Nekoosa/NNP
's/POS
stock/NN
well/RB
above/IN
the/DT
Georgia-Pacific/NNP
bid/NN
,/,
assuming/VBG
that/IN
Nekoosa/NNP
's/POS
will/MD
either/CC
be/VB
sold/VBN
to/TO
a/DT
rival/JJ
bidder/NN
or/CC
to/TO
Georgia-Pacific/NNP
at/IN
a/DT
higher/JJR
price/NN
--/:
as/RB
much/JJ
as/IN
$/$
75/CD
a/DT
share/NN
,/,
according/VBG
to/TO
some/DT
estimates/NNS
./.
Yesterday/NN
,/,
Nekoosa/NNP
common/JJ
closed/VBD
in/IN
composite/JJ
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
trading/NN
at/IN
$/$
62.875/CD
,/,
up/RB
$/$
20.125/CD
,/,
on/IN
volume/NN
of/IN
almost/RB
6.3/CD
million/CD
shares/NNS
./.
Georgia-Pacific/NNP
closed/VBD
down/RB
$/$
2.50/CD
,/,
at/IN
$/$
50.875/CD
in/IN
Big/NNP
Board/NNP
trading/NN
./.
Takeover/NN
stock/NN
traders/NNS
noted/VBD
that/IN
with/IN
the/DT
junk-bond/NN
market/NN
in/IN
disarray/NN
,/,
Georgia-Pacific/NNP
's/POS
bid/NN
is/VBZ
an/DT
indication/NN
of/IN
where/WRB
the/DT
takeover/NN
game/NN
is/VBZ
headed/VBN
:/:
namely/RB
,/,
industrial/JJ
companies/NNS
can/MD
continue/VB
bidding/NN
for/IN
one/CD
another/DT
,/,
but/CC
financial/JJ
buyers/NNS
such/JJ
as/IN
leveraged/JJ
buy-out/NN
firms/NNS
will/MD
be/VB
at/IN
a/DT
disadvantage/NN
in/IN
obtaining/VBG
financing/NN
./.
``/``
The/DT
way/NN
the/DT
world/NN
is/VBZ
shaping/VBG
up/RP
,/,
the/DT
strategic/JJ
buyer/NN
is/VBZ
going/VBG
to/TO
be/VB
the/DT
rule/NN
and/CC
the/DT
financial/JJ
buyer/NN
is/VBZ
going/VBG
to/TO
be/VB
the/DT
exception/NN
,/,
''/''
said/VBD
one/CD
trader/NN
./.
For/IN
the/DT
paper/NN
industry/NN
specifically/RB
,/,
most/JJS
analysts/NNS
said/VBD
the/DT
deal/NN
will/MD
spur/VB
a/DT
wave/NN
of/IN
paper-company/NN
takeovers/NNS
,/,
possibly/RB
involving/VBG
such/JJ
companies/NNS
as/IN
Union/NNP
Camp/NNP
Corp./NNP
,/,
Federal/NNP
Paperboard/NNP
Co./NNP
and/CC
Mead/NNP
Corp/NNP
./.
The/DT
analysts/NNS
argued/VBD
that/IN
Georgia-Pacific/NNP
's/POS
offer/NN
,/,
the/DT
first/JJ
hostile/NN
bid/NN
ever/RB
among/IN
major/JJ
players/NNS
in/IN
the/DT
paper/NN
industry/NN
,/,
ends/VBZ
the/DT
unwritten/JJ
taboo/NN
on/IN
hostile/JJ
bids/NNS
,/,
and/CC
will/MD
push/VB
managements/NNS
to/TO
look/VB
closely/RB
at/IN
the/DT
industry/NN
's/POS
several/JJ
attractive/JJ
takeover/NN
candidates/NNS
./.
``/``
Consolidation/NN
has/VBZ
been/VBN
long/RB
overdue/JJ
./.
It/PRP
was/VBD
just/RB
the/DT
culture/NN
of/IN
the/DT
industry/NN
that/WDT
kept/VBD
it/PRP
from/IN
happening/VBG
./.
The/DT
Georgia-Pacific/NNP
offer/NN
has/VBZ
definitely/RB
changed/VBN
the/DT
landscape/NN
,/,
''/''
said/VBD
Gary/NNP
Palmero/NNP
of/IN
Oppenheimer/NNP
&/CC
Co/NNP
./.
Added/VBD
Mark/NNP
Rogers/NNP
of/IN
Prudential-Bache/NNP
Securities/NNPS
Inc./NNP
:/:
``/``
It/PRP
's/VBZ
much/RB
easier/JJR
to/TO
be/VB
second/JJ
./.
''/''
A/DT
Georgia-Pacific/NNP
acquisition/NN
of/IN
Nekoosa/NNP
would/MD
create/VB
the/DT
largest/JJS
U.S./NNP
forest-products/JJ
company/NN
./.
Based/VBN
on/IN
1988/CD
sales/NNS
,/,
Georgia-Pacific/NNP
ranked/VBD
third/JJ
at/IN
$/$
9.51/CD
billion/CD
,/,
behind/IN
Weyerhaeuser/NNP
Co./NNP
at/IN
$/$
10/CD
billion/CD
and/CC
International/NNP
Paper/NNP
Co./NNP
at/IN
$/$
9.53/CD
billion/CD
./.
Nekoosa/NNP
ranked/VBD
11th/JJ
with/IN
sales/NNS
of/IN
$/$
3.59/CD
billion/CD
./.
The/DT
combined/VBN
company/NN
would/MD
have/VB
had/VBN
1988/CD
sales/NNS
of/IN
$/$
13.1/CD
billion/CD
./.
But/CC
such/PDT
a/DT
combination/NN
also/RB
presents/VBZ
great/JJ
risks/NNS
./.
At/IN
a/DT
time/NN
when/WRB
most/JJS
analysts/NNS
and/CC
industry/NN
consultants/NNS
say/VBP
pulp/NN
and/CC
paper/NN
prices/NNS
are/VBP
heading/VBG
for/IN
a/DT
dive/NN
,/,
adding/VBG
capacity/NN
and/CC
debt/NN
could/MD
squeeze/VB
Georgia-Pacific/NNP
if/IN
the/DT
industry/NN
declines/VBZ
more/RBR
than/IN
the/DT
company/NN
expects/VBZ
./.
Moreover/RB
,/,
any/DT
unexpected/JJ
strengthening/NN
of/IN
the/DT
dollar/NN
would/MD
hurt/VB
Georgia-Pacific/NNP
because/IN
two/CD
of/IN
Nekoosa/NN
's/POS
major/JJ
product/NN
lines/NNS
--/:
containerboard/NN
,/,
which/WDT
is/VBZ
used/VBN
to/TO
make/VB
shipping/NN
boxes/NNS
,/,
and/CC
market/NN
pulp/NN
--/:
are/VBP
exported/VBN
in/IN
large/JJ
quantities/NNS
./.
``/``
Nobody/NN
knows/VBZ
how/WRB
deep/JJ
the/DT
cycle/NN
is/VBZ
going/VBG
to/TO
be/VB
,/,
''/''
said/VBD
Rod/NNP
Young/NNP
,/,
vice/NN
president/NN
of/IN
Resource/NNP
Information/NNP
Systems/NNP
Inc./NNP
,/,
a/DT
Bedford/NNP
,/,
Mass./NNP
,/,
economic-forecasting/JJ
firm/NN
./.
``/``
Depending/VBG
on/IN
how/WRB
far/RB
down/RB
you/PRP
go/VBP
,/,
it/PRP
may/MD
be/VB
difficult/JJ
to/TO
pay/VB
off/RP
that/DT
debt/NN
./.
''/''
One/CD
person/NN
familiar/JJ
with/IN
Georgia-Pacific/NNP
said/VBD
the/DT
acquisition/NN
would/MD
more/RBR
than/IN
double/VB
the/DT
company/NN
's/POS
debt/NN
of/IN
almost/RB
$/$
3/CD
billion/CD
./.
It/PRP
also/RB
could/MD
be/VB
a/DT
drag/NN
on/IN
Georgia-Pacific/NNP
earnings/NNS
because/IN
the/DT
roughly/RB
$/$
1.5/CD
billion/CD
in/IN
goodwill/NN
--/:
the/DT
amount/NN
by/IN
which/WDT
the/DT
bid/NN
exceeds/VBZ
Nekoosa/NNP
's/POS
book/NN
value/NN
of/IN
$/$
1.5/CD
billion/CD
--/:
will/MD
have/VB
to/TO
be/VB
subtracted/VBN
from/IN
earnings/NNS
over/IN
a/DT
period/NN
of/IN
decades/NNS
./.
Georgia-Pacific/NNP
's/POS
Mr./NNP
Hahn/NNP
said/VBD
that/IN
a/DT
combined/JJ
operation/NN
would/MD
allow/VB
savings/NNS
in/IN
many/JJ
ways/NNS
./.
The/DT
two/CD
companies/NNS
each/DT
produce/VBP
market/NN
pulp/NN
,/,
containerboard/NN
and/CC
white/JJ
paper/NN
./.
That/DT
means/VBZ
goods/NNS
could/MD
be/VB
manufactured/VBN
closer/RBR
to/TO
customers/NNS
,/,
saving/VBG
shipping/NN
costs/NNS
,/,
he/PRP
said/VBD
./.
Moreover/RB
,/,
production/NN
runs/NNS
would/MD
be/VB
longer/JJR
,/,
cutting/VBG
inefficiencies/NNS
from/IN
adjusting/VBG
machinery/NN
between/IN
production/NN
cycles/NNS
./.
And/CC
Georgia-Pacific/NNP
could/MD
save/VB
money/NN
in/IN
selling/VBG
pulp/NN
,/,
because/IN
the/DT
company/NN
uses/VBZ
its/PRP$
own/JJ
sales/NNS
organization/NN
while/IN
Nekoosa/NNP
employs/VBZ
higher-cost/JJ
agents/NNS
./.
Mr./NNP
Hahn/NNP
said/VBD
Georgia-Pacific/NNP
has/VBZ
accounted/VBN
in/IN
its/PRP$
strategy/NN
for/IN
a/DT
``/``
significant/JJ
downturn/NN
''/''
in/IN
the/DT
pulp/NN
and/CC
paper/NN
industry/NN
,/,
an/DT
event/NN
that/IN
he/PRP
said/VBD
would/MD
temporarily/RB
dilute/VB
earnings/NNS
./.
But/CC
he/PRP
said/VBD
that/IN
even/RB
under/IN
those/DT
conditions/NNS
,/,
the/DT
company/NN
still/RB
would/MD
realize/VB
a/DT
savings/NNS
of/IN
tens/NNS
of/IN
millions/NNS
of/IN
dollars/NNS
in/IN
the/DT
first/JJ
year/NN
following/VBG
a/DT
merger/NN
./.
``/``
The/DT
fit/NN
is/VBZ
so/RB
good/JJ
,/,
we/PRP
see/VBP
this/DT
as/IN
a/DT
time/NN
of/IN
opportunity/NN
,/,
''/''
he/PRP
said/VBD
./.
Georgia-Pacific/NNP
,/,
which/WDT
has/VBZ
suspended/VBN
its/PRP$
stock-repurchase/JJ
program/NN
,/,
would/MD
finance/VB
the/DT
acquisition/NN
with/IN
all/DT
bank/NN
debt/NN
,/,
provided/VBN
by/IN
banks/NNS
led/VBN
by/IN
BankAmerica/NNP
Corp/NNP
./.
Georgia-Pacific/NNP
owns/VBZ
349,900/CD
Nekoosa/NNP
shares/NNS
and/CC
would/MD
need/VB
federal/JJ
antitrust/JJ
clearance/NN
to/TO
buy/VB
more/JJR
than/IN
$/$
15/CD
million/CD
worth/NN
./.
U.S./NNP
clearance/NN
also/RB
is/VBZ
needed/VBN
for/IN
the/DT
proposed/JJ
acquisition/NN
./.
For/IN
Nekoosa/NNP
,/,
defense/NN
options/NNS
may/MD
be/VB
undercut/JJ
somewhat/RB
by/IN
the/DT
precarious/JJ
state/NN
of/IN
the/DT
junk-bond/NN
market/NN
,/,
which/WDT
limits/VBZ
how/WRB
much/JJ
value/NN
the/DT
target/NN
could/MD
reach/VB
in/IN
a/DT
debt-financed/JJ
recapitalization/NN
./.
The/DT
company/NN
's/POS
chairman/NN
,/,
Mr./NNP
Laidig/NNP
,/,
and/CC
a/DT
group/NN
of/IN
advisers/NNS
met/VBD
at/IN
the/DT
offices/NNS
of/IN
Wachtel/NNP
Lipton/NNP
Rosen/NNP
&/CC
Katz/NNP
,/,
a/DT
law/NN
firm/NN
specializing/VBG
in/IN
takeover/NN
defense/NN
./.
Nekoosa/NNP
also/RB
is/VBZ
being/VBG
advised/VBN
by/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
./.
Georgia-Pacific/NNP
's/POS
advisers/NNS
are/VBP
Wasserstein/NNP
,/,
Perella/NNP
&/CC
Co./NNP
,/,
which/WDT
stands/VBZ
to/TO
receive/VB
a/DT
$/$
15/CD
million/CD
fee/NN
if/IN
the/DT
takeover/NN
succeeds/VBZ
,/,
and/CC
the/DT
law/NN
firm/NN
of/IN
Shearman/NNP
&/CC
Sterling/NNP
./.
People/NNS
familiar/JJ
with/IN
Nekoosa/NNP
said/VBD
its/PRP$
board/NN
is/VBZ
n't/RB
likely/JJ
to/TO
meet/VB
before/IN
the/DT
week/NN
after/IN
next/JJ
to/TO
respond/VB
to/TO
the/DT
bid/NN
./.
The/DT
board/NN
has/VBZ
10/CD
business/NN
days/NNS
to/TO
respond/VB
./.
In/IN
addition/NN
to/TO
the/DT
usual/JJ
array/NN
of/IN
defenses/NNS
,/,
including/VBG
a/DT
so-called/JJ
poison/NN
pill/NN
and/CC
a/DT
staggered/JJ
board/NN
,/,
Nekoosa/NNP
has/VBZ
another/DT
takeover/NN
defense/NN
:/:
a/DT
Maine/NNP
state/NN
law/NN
barring/VBG
hostile/JJ
bidders/NNS
from/IN
merging/VBG
acquired/VBN
businesses/NNS
for/IN
five/CD
years/NNS
./.
Nekoosa/NNP
is/VBZ
incorporated/VBN
in/IN
Maine/NNP
./.
Georgia-Pacific/NNP
has/VBZ
filed/VBN
a/DT
lawsuit/NN
in/IN
federal/JJ
court/NN
in/IN
Maine/NNP
challenging/VBG
the/DT
poison/NN
pill/NN
and/CC
the/DT
Maine/NNP
merger/NN
law/NN
./.
Nekoosa/NNP
's/POS
poison/NN
pill/NN
allows/VBZ
shareholders/NNS
to/TO
vote/VB
to/TO
rescind/VB
it/PRP
,/,
but/CC
Georgia-Pacific/NNP
is/VBZ
n't/RB
likely/JJ
to/TO
pursue/VB
such/PDT
a/DT
course/NN
immediately/RB
because/IN
that/DT
would/MD
take/VB
90/CD
to/TO
120/CD
days/NNS
,/,
and/CC
would/MD
n't/RB
affect/VB
the/DT
provisions/NNS
of/IN
the/DT
Maine/NNP
law/NN
./.
Among/IN
companies/NNS
mentioned/VBN
by/IN
analysts/NNS
as/IN
possible/JJ
counterbidders/NNS
for/IN
Nekoosa/NNP
are/VBP
International/NNP
Paper/NNP
,/,
Weyerhaeuser/NNP
,/,
Canadian/NNP
Pacific/NNP
Ltd./NNP
and/CC
MacMillan/NNP
Bloedel/NNP
Ltd/NNP
./.
``/``
I/PRP
'm/VBP
sure/JJ
everybody/NN
else/RB
is/VBZ
putting/VBG
pencil/NN
to/TO
paper/NN
,/,
''/''
said/VBD
Kathryn/NNP
McAuley/NNP
,/,
an/DT
analyst/NN
with/IN
First/NNP
Manhattan/NNP
Co/NNP
./.
International/NNP
Paper/NNP
and/CC
Weyerhaeuser/NNP
declined/VBD
to/TO
comment/VB
./.
Canadian/NNP
Pacific/NNP
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
,/,
and/CC
MacMillan/NNP
Bloedel/NNP
said/VBD
it/PRP
has/VBZ
n't/RB
any/DT
plans/NNS
to/TO
make/VB
a/DT
bid/NN
for/IN
Nekoosa/NN
./.
Investors/NNS
were/VBD
quick/JJ
to/TO
spot/VB
other/JJ
potential/JJ
takeover/NN
candidates/NNS
,/,
all/DT
of/IN
which/WDT
have/VBP
strong/JJ
cash/NN
flows/NNS
and/CC
low-cost/JJ
operations/NNS
./.
Among/IN
paper/NN
company/NN
stocks/NNS
that/WDT
rallied/VBD
on/IN
the/DT
Big/NNP
Board/NNP
because/IN
of/IN
the/DT
offer/NN
were/VBD
Union/NNP
Camp/NNP
,/,
up/RB
$/$
2.75/CD
to/TO
$/$
37.75/CD
,/,
Federal/NNP
Paperboard/NNP
,/,
up/RB
$/$
1.75/CD
to/TO
$/$
27.875/CD
,/,
Mead/NN
,/,
up/RB
$/$
2.375/CD
to/TO
$/$
38.75/CD
,/,
and/CC
Temple/NNP
Inland/NNP
Inc./NNP
,/,
up/RB
$/$
3.75/CD
to/TO
$/$
62.25/CD
./.
In/IN
over-the-counter/JJ
national/JJ
trading/NN
,/,
Bowater/NNP
Inc./NNP
jumped/VBD
$/$
1.50/CD
to/TO
$/$
27.50/CD
./.
Some/DT
analysts/NNS
argued/VBD
that/IN
there/EX
wo/MD
n't/RB
be/VB
a/DT
flurry/NN
of/IN
takeovers/NNS
because/IN
the/DT
industry/NN
's/POS
continuing/JJ
capacity-expansion/JJ
program/NN
is/VBZ
eating/VBG
up/IN
available/JJ
cash/NN
./.
Moreover/RB
,/,
some/DT
analysts/NNS
said/VBD
they/PRP
expect/VBP
a/DT
foreign/JJ
paper/NN
company/NN
with/IN
deeper/JJR
pockets/NNS
than/IN
Georgia-Pacific/NNP
to/TO
end/VB
up/RP
acquiring/VBG
Nekoosa/NNP
,/,
signaling/VBG
to/TO
the/DT
rest/NN
of/IN
the/DT
industry/NN
that/IN
hostile/JJ
bids/NNS
are/VBP
unproductive/JJ
./.
``/``
This/DT
is/VBZ
a/DT
one-time/JJ
event/NN
,/,
''/''
said/VBD
Lawrence/NNP
Ross/NNP
of/IN
PaineWebber/NNP
Inc./NNP
,/,
referring/VBG
to/TO
the/DT
Georgia-Pacific/NNP
bid/NN
./.
But/CC
many/JJ
analysts/NNS
believe/VBP
that/IN
,/,
given/VBN
the/DT
attractiveness/NN
of/IN
paper/NN
companies/NNS
'/POS
cash/NN
flows/NNS
,/,
as/RB
well/RB
as/IN
the/DT
frantic/JJ
consolidation/NN
of/IN
the/DT
paper/NN
industry/NN
in/IN
Europe/NNP
,/,
there/EX
will/MD
be/VB
at/IN
least/JJS
a/DT
few/JJ
more/JJR
big/JJ
hostile/NN
bids/NNS
for/IN
U.S./NNP
companies/NNS
within/IN
the/DT
next/JJ
several/JJ
months/NNS
./.
The/DT
buyers/NNS
,/,
these/DT
analysts/NNS
added/VBD
,/,
could/MD
be/VB
either/CC
foreign/JJ
or/CC
other/JJ
U.S./NNP
concerns/NNS
./.
``/``
The/DT
Georgia-Pacific/NNP
bid/NN
may/MD
open/VB
the/DT
door/NN
to/TO
a/DT
new/JJ
era/NN
of/IN
consolidation/NN
''/''
in/IN
the/DT
paper/NN
industry/NN
,/,
said/VBD
Mark/NNP
Devario/NNP
of/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc/NNP
./.
``/``
I/PRP
do/VBP
n't/RB
think/VB
anyone/NN
is/VBZ
now/RB
immune/JJ
from/IN
takeover/NN
,/,
''/''
said/VBD
Robert/NNP
Schneider/NNP
of/IN
Duff/NNP
&/CC
Phelps/NNP
Inc./NNP
,/,
Chicago/NNP
./.
He/PRP
added/VBD
:/:
``/``
Every/DT
paper/NN
company/NN
management/NN
has/VBZ
to/TO
be/VB
saying/VBG
to/TO
itself/PRP
,/,
`/``
Before/IN
someone/NN
comes/VBZ
after/IN
me/PRP
,/,
I/PRP
'm/VBP
going/VBG
to/TO
go/VB
after/IN
somebody/NN
./.
'/''
''/''
Prudential-Bache/NNP
's/POS
Mr./NNP
Rodgers/NNP
said/VBD
he/PRP
does/VBZ
n't/RB
see/VB
the/DT
industry/NN
's/POS
capacity-expansion/NN
program/NN
hindering/VBG
takeover/NN
activity/NN
./.
Several/JJ
projects/NNS
,/,
he/PRP
said/VBD
,/,
are/VBP
still/RB
on/IN
the/DT
drawing/VBG
board/NN
./.
Moreover/RB
,/,
``/``
it/PRP
's/VBZ
a/DT
lot/NN
cheaper/JJR
and/CC
quicker/JJR
to/TO
buy/VB
a/DT
plant/NN
than/IN
to/TO
build/VB
one/NN
./.
''/''
Indeed/RB
,/,
a/DT
number/NN
of/IN
analysts/NNS
said/VBD
that/IN
Japanese/JJ
paper/NN
companies/NNS
are/VBP
hungry/JJ
to/TO
acquire/VB
additional/JJ
manufacturing/NN
capacity/NN
anywhere/RB
in/IN
the/DT
world/NN
./.
Some/DT
predicted/VBD
that/IN
Nekoosa/NNP
will/MD
end/VB
up/IN
being/VBG
owned/VBN
by/IN
a/DT
Japanese/JJ
company/NN
./.
Meanwhile/RB
,/,
Shearson/NNP
Lehman/NNP
's/POS
Mr./NNP
Devario/NNP
said/VBD
that/IN
,/,
to/TO
stay/VB
competitive/JJ
,/,
the/DT
U.S./NNP
paper/NN
industry/NN
needs/VBZ
to/TO
catch/VB
up/RP
with/IN
the/DT
European/JJ
industry/NN
./.
Since/IN
the/DT
most-recent/JJ
wave/NN
of/IN
friendly/JJ
takeovers/NNS
was/VBD
completed/VBN
in/IN
the/DT
U.S./NNP
in/IN
1986/CD
,/,
there/EX
have/VBP
been/VBN
more/JJR
than/IN
100/CD
mergers/NNS
and/CC
acquisitions/NNS
within/IN
the/DT
European/JJ
paper/NN
industry/NN
,/,
he/PRP
said/VBD
./.
Lyphomed/NNP
Inc./NNP
,/,
Rosemont/NNP
,/,
Ill./NNP
,/,
and/CC
Medco/NNP
Research/NNP
Inc./NNP
,/,
Los/NNP
Angeles/NNP
,/,
said/VBD
the/DT
Food/NNP
and/CC
Drug/NNP
Administration/NNP
granted/VBD
full/JJ
marketing/NN
approval/NN
for/IN
a/DT
new/JJ
drug/NN
for/IN
the/DT
treatment/NN
of/IN
a/DT
condition/NN
in/IN
which/WDT
the/DT
heart/NN
beats/VBZ
between/IN
150/CD
and/CC
200/CD
beats/NNS
a/DT
minute/NN
./.
The/DT
condition/NN
,/,
known/VBN
as/IN
paroxysmal/JJ
supraventricular/JJ
tachycardia/NN
,/,
leads/VBZ
to/TO
dizziness/NN
and/CC
fainting/NN
./.
The/DT
typical/JJ
healthy/JJ
heart/NN
beats/VBZ
70/CD
times/NNS
a/DT
minute/NN
./.
The/DT
drug/NN
,/,
called/VBN
adenocard/NN
,/,
returns/VBZ
the/DT
heart/NN
to/TO
a/DT
normal/JJ
rhythm/NN
within/IN
seconds/NNS
,/,
according/VBG
to/TO
Lyphomed/NNP
./.
Medco/NNP
Research/NNP
developed/VBD
the/DT
drug/NN
and/CC
licensed/VBD
it/PRP
to/TO
Lyphomed/NNP
for/IN
sale/NN
in/IN
the/DT
U.S./NNP
and/CC
Canada/NNP
./.
Private/JJ
industry/NN
's/POS
labor/NN
costs/NNS
rose/VBD
1.2/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
matching/VBG
the/DT
second-quarter/JJ
pace/NN
,/,
as/IN
health/NN
insurance/NN
costs/NNS
continued/VBD
to/TO
soar/VB
,/,
the/DT
Labor/NNP
Department/NNP
said/VBD
./.
The/DT
increase/NN
in/IN
wage/NN
and/CC
benefit/NN
costs/NNS
in/IN
the/DT
third/JJ
quarter/NN
was/VBD
greater/JJR
than/IN
the/DT
1/CD
%/NN
rise/NN
reported/VBN
for/IN
the/DT
third/JJ
quarter/NN
of/IN
1988/CD
./.
``/``
Wage/NN
increases/NNS
and/CC
overall/JJ
compensation/NN
increases/NNS
are/VBP
beginning/VBG
to/TO
curl/VB
upward/RB
a/DT
little/JJ
bit/NN
,/,
''/''
said/VBD
Audrey/NNP
Freedman/NNP
,/,
a/DT
labor/NN
economist/NN
at/IN
the/DT
Conference/NNP
Board/NNP
,/,
a/DT
business/NN
research/NN
organization/NN
./.
``/``
One/PRP
would/MD
have/VB
thought/VBN
this/DT
would/MD
have/VB
happened/VBN
two/CD
or/CC
three/CD
years/NNS
ago/RB
as/IN
the/DT
labor/NN
market/NN
tightened/VBD
./.
It/PRP
is/VBZ
a/DT
considerably/RB
delayed/VBN
reaction/NN
and/CC
it/PRP
's/VBZ
not/RB
a/DT
severe/JJ
one/NN
at/IN
all/DT
,/,
''/''
she/PRP
added/VBD
./.
The/DT
new/JJ
data/NNS
underscored/VBD
the/DT
severity/NN
of/IN
the/DT
nation/NN
's/POS
health-care/NN
cost/NN
problem/NN
./.
In/IN
the/DT
12/CD
months/NNS
ended/VBN
in/IN
September/NNP
,/,
wages/NNS
and/CC
salaries/NNS
of/IN
private-sector/JJ
workers/NNS
rose/VBD
4.4/CD
%/NN
,/,
while/IN
health/NN
insurance/NN
costs/NNS
spurted/VBN
by/IN
13.7/CD
%/NN
./.
The/DT
consumer/NN
price/NN
index/NN
climbed/VBD
4.3/CD
%/NN
in/IN
the/DT
same/JJ
period/NN
./.
Despite/IN
the/DT
big/JJ
increases/NNS
in/IN
health-care/NN
costs/NNS
,/,
wages/NNS
still/RB
account/VBP
for/IN
a/DT
far/RB
greater/JJR
share/NN
of/IN
overall/JJ
labor/NN
costs/NNS
./.
The/DT
overall/JJ
private-sector/JJ
employment/NN
cost/NN
index/NN
,/,
which/WDT
includes/VBZ
both/CC
wages/NNS
and/CC
benefits/NNS
,/,
rose/VBD
4.7/CD
%/NN
in/IN
the/DT
12/CD
months/NNS
ended/VBN
in/IN
September/NNP
,/,
compared/VBN
with/IN
4.5/CD
%/NN
for/IN
both/CC
the/DT
12/CD
months/NNS
ended/VBN
in/IN
June/NNP
and/CC
the/DT
12/CD
months/NNS
ended/VBD
September/NNP
1988/CD
./.
Labor/NN
costs/NNS
are/VBP
climbing/VBG
at/IN
a/DT
far/RB
more/RBR
rapid/JJ
pace/NN
in/IN
the/DT
health/NN
care/NN
industry/NN
than/IN
in/IN
other/JJ
industries/NNS
./.
For/IN
instance/NN
,/,
wages/NNS
of/IN
private-sector/JJ
hospital/NN
workers/NNS
leaped/VBD
6.6/CD
%/NN
in/IN
the/DT
12/CD
months/NNS
ended/VBN
in/IN
September/NNP
,/,
compared/VBN
with/IN
4.4/CD
%/NN
for/IN
workers/NNS
in/IN
all/DT
industries/NNS
./.
In/IN
the/DT
third/JJ
quarter/NN
,/,
wages/NNS
and/CC
salaries/NNS
in/IN
all/DT
private/JJ
industry/NN
rose/VBD
1.2/CD
%/NN
,/,
compared/VBN
with/IN
1/CD
%/NN
increases/NNS
in/IN
both/CC
the/DT
second/JJ
quarter/NN
and/CC
in/IN
the/DT
third/JJ
quarter/NN
of/IN
1988/CD
./.
For/IN
the/DT
past/JJ
five/CD
years/NNS
,/,
unions/NNS
have/VBP
n't/RB
managed/VBN
to/TO
win/VB
wage/NN
increases/VBZ
as/RB
large/JJ
as/IN
those/DT
granted/VBN
to/TO
nonunion/JJ
workers/NNS
./.
For/IN
private-sector/JJ
union/NN
workers/NNS
,/,
the/DT
cost/NN
of/IN
wages/NNS
and/CC
benefits/NNS
rose/VBD
0.9/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
./.
For/IN
nonunion/JJ
workers/NNS
,/,
the/DT
costs/NNS
rose/VBD
1.4/CD
%/NN
./.
Labor/NN
costs/NNS
continued/VBD
to/TO
rise/VB
more/RBR
rapidly/RB
in/IN
service/NN
industries/NNS
than/IN
in/IN
goods-producing/JJ
industries/NNS
,/,
the/DT
report/NN
showed/VBD
./.
It/PRP
also/RB
found/VBD
them/PRP
rising/VBG
much/RB
more/RBR
in/IN
the/DT
Northeast/NNP
than/IN
elsewhere/RB
./.
Including/VBG
employees/NNS
of/IN
state/NN
and/CC
local/JJ
--/:
but/CC
not/RB
the/DT
federal/JJ
--/:
governments/NNS
,/,
the/DT
employment/NN
cost/NN
index/NN
rose/VBD
1.6/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
compared/VBN
with/IN
a/DT
1.3/CD
%/NN
rise/NN
in/IN
the/DT
same/JJ
quarter/NN
in/IN
1988/CD
./.
The/DT
index/NN
rose/VBD
1.1/CD
%/NN
in/IN
the/DT
second/JJ
quarter/NN
./.
For/IN
the/DT
12/CD
months/NNS
ended/VBN
in/IN
September/NNP
,/,
this/DT
index/NN
was/VBD
up/RB
5.1/CD
%/NN
./.
It/PRP
rose/VBD
4.8/CD
%/NN
for/IN
the/DT
12/CD
months/NNS
ended/VBN
in/IN
June/NNP
and/CC
4.7/CD
%/NN
in/IN
the/DT
12/CD
months/NNS
ended/VBN
in/IN
September/NNP
1988/CD
./.
Unlike/IN
most/JJS
economic/JJ
indicators/NNS
,/,
none/NN
of/IN
these/DT
figures/NNS
are/VBP
adjusted/VBN
for/IN
seasonal/JJ
variations/NNS
./.
DeSoto/NNP
Inc./NNP
said/VBD
it/PRP
is/VBZ
dismissing/VBG
200/CD
employees/NNS
as/IN
part/NN
of/IN
a/DT
restructuring/NN
aimed/VBN
at/IN
producing/VBG
pretax/JJ
savings/NNS
of/IN
$/$
10/CD
million/CD
annually/RB
./.
Under/IN
the/DT
plan/NN
,/,
DeSoto/NN
said/VBD
it/PRP
will/MD
sell/VB
certain/JJ
assets/NNS
and/CC
businesses/NNS
that/WDT
do/VBP
n't/RB
meet/VB
strategic/JJ
and/CC
profitability/NN
objectives/NNS
./.
The/DT
Des/NNP
Plaines/NNP
,/,
Ill./NNP
,/,
chemical/JJ
coatings/NNS
concern/NN
,/,
which/WDT
has/VBZ
about/RB
2,000/CD
employees/NNS
world-wide/RB
,/,
said/VBD
it/PRP
plans/VBZ
to/TO
sell/VB
its/PRP$
domestic/JJ
rigid/JJ
container/NN
packaging/NN
and/CC
flexible/JJ
adhesives/NNS
businesses/NNS
,/,
and/CC
its/PRP$
Chicago/NNP
Heights/NNP
,/,
Ill./NNP
,/,
resin/NN
plant/NN
./.
The/DT
company/NN
said/VBD
it/PRP
plans/VBZ
to/TO
use/VB
the/DT
sale/NN
proceeds/NNS
to/TO
invest/VB
in/IN
business/NN
opportunities/NNS
more/RBR
closely/RB
identified/VBN
with/IN
the/DT
company/NN
's/VBZ
``/``
refocused/VBN
direction/NN
./.
''/''
StatesWest/NNP
Airlines/NNP
,/,
Phoenix/NNP
,/,
Ariz./NNP
,/,
said/VBD
it/PRP
withdrew/VBD
its/PRP$
offer/NN
to/TO
acquire/VB
Mesa/NNP
Airlines/NNP
because/IN
the/DT
Farmington/NNP
,/,
N.M./NNP
,/,
carrier/NN
did/VBD
n't/RB
respond/VB
to/TO
its/PRP$
offer/NN
by/IN
the/DT
close/NN
of/IN
business/NN
yesterday/NN
,/,
a/DT
deadline/NN
StatesWest/NNP
had/VBD
set/VBN
for/IN
a/DT
response/NN
./.
However/RB
,/,
StatesWest/NNP
is/VBZ
n't/RB
abandoning/VBG
its/PRP$
pursuit/NN
of/IN
the/DT
much-larger/JJ
Mesa/NNP
./.
StatesWest/NNP
,/,
which/WDT
has/VBZ
a/DT
7.25/CD
%/NN
stake/NN
in/IN
Mesa/NNP
,/,
said/VBD
it/PRP
may/MD
purchase/VB
more/JJR
Mesa/NNP
stock/NN
or/CC
make/VB
a/DT
tender/NN
offer/NN
directly/RB
to/TO
Mesa/NNP
shareholders/NNS
./.
StatesWest/NNP
had/VBD
proposed/VBN
acquiring/VBG
Mesa/NNP
for/IN
$/$
7/CD
a/DT
share/NN
and/CC
one/CD
share/NN
of/IN
a/DT
new/JJ
series/NN
of/IN
StatesWest/NNP
6/CD
%/NN
convertible/JJ
preferred/JJ
stock/NN
it/PRP
values/VBZ
at/IN
$/$
3/CD
a/DT
share/NN
./.
Earlier/RBR
,/,
Mesa/NNP
had/VBD
rejected/VBN
a/DT
general/JJ
proposal/NN
from/IN
StatesWest/NNP
to/TO
combine/VB
the/DT
two/CD
carriers/NNS
in/IN
some/DT
way/NN
./.
StatesWest/NNP
serves/VBZ
10/CD
cities/NNS
in/IN
California/NNP
,/,
Arizona/NNP
and/CC
Nevada/NNP
./.
Mesa/NNP
flies/VBZ
to/TO
42/CD
cities/NNS
in/IN
New/NNP
Mexico/NNP
,/,
Arizona/NNP
,/,
Wyoming/NNP
,/,
Colorado/NNP
and/CC
Texas/NNP
./.
A/DT
shiny/JJ
new/JJ
takeover/NN
deal/NN
sparked/VBD
a/DT
big/JJ
rally/NN
in/IN
stock/NN
prices/NNS
,/,
which/WDT
buoyed/VBD
the/DT
dollar/NN
./.
Bond/NN
prices/NNS
also/RB
edged/VBD
higher/RBR
./.
Georgia-Pacific/NNP
's/POS
$/$
3.18/CD
billion/CD
bid/NN
for/IN
Great/NNP
Northern/NNP
Nekoosa/NNP
helped/VBD
drive/VB
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
up/RB
41.60/CD
points/NNS
,/,
to/TO
2645.08/CD
,/,
in/IN
active/JJ
trading/NN
./.
The/DT
dollar/NN
drew/VBD
strength/NN
from/IN
the/DT
stock/NN
market/NN
's/POS
climb/NN
./.
Long-term/JJ
bond/NN
prices/NNS
rose/VBD
despite/IN
trepidation/NN
about/IN
what/WP
a/DT
key/JJ
economic/JJ
report/NN
will/MD
show/VB
today/NN
./.
Analysts/NNS
said/VBD
the/DT
offer/NN
for/IN
Great/NNP
Northern/NNP
Nekoosa/NNP
broke/VBD
the/DT
pall/NN
that/WDT
settled/VBD
over/IN
the/DT
takeover/NN
business/NN
for/IN
the/DT
past/JJ
three/CD
weeks/NNS
in/IN
the/DT
wake/NN
of/IN
the/DT
collapsed/JJ
UAL/NNP
Corp/NNP
./.
buy-out/NN
./.
Great/NNP
Northern/NNP
Nekoosa/NNP
soared/VBD
$/$
20.125/CD
a/DT
share/NN
,/,
to/TO
$/$
62.875/CD
,/,
substantially/RB
above/IN
the/DT
$/$
58/CD
a/DT
share/NN
Georgia-Pacific/NNP
is/VBZ
offering/VBG
./.
That/DT
indicates/VBZ
speculators/NNS
are/VBP
betting/VBG
a/DT
higher/JJR
offer/NN
is/VBZ
in/IN
the/DT
wings/NNS
./.
Prices/NNS
of/IN
other/JJ
paper/NN
makers/NNS
rose/VBD
sharply/RB
,/,
although/IN
Georgia-Pacific/NNP
fell/VBD
$/$
2.50/CD
a/DT
share/NN
,/,
to/TO
$/$
50.875/CD
./.
Despite/IN
all/PDT
the/DT
furor/NN
over/IN
program/NN
trading/NN
,/,
program/NN
trading/NN
played/VBD
a/DT
big/JJ
role/NN
in/IN
yesterday/NN
's/POS
rally/NN
./.
Some/DT
traders/NNS
point/VBP
out/RP
that/IN
as/IN
the/DT
big/JJ
brokerage/NN
firms/NNS
back/VBP
out/IN
of/IN
program/NN
trading/NN
for/IN
their/PRP$
own/JJ
accounts/NNS
or/CC
for/IN
clients/NNS
,/,
opportunities/NNS
increase/VBP
for/IN
others/NNS
to/TO
engage/VB
in/IN
the/DT
controversial/JJ
practice/NN
./.
That/DT
's/VBZ
what/WP
happened/VBD
yesterday/NN
./.
The/DT
rally/NN
notwithstanding/RB
,/,
there/EX
are/VBP
plenty/NN
of/IN
worries/NNS
about/IN
the/DT
short-term/JJ
course/NN
of/IN
stock/NN
prices/NNS
./.
A/DT
slowing/VBG
economy/NN
and/CC
its/PRP$
effect/NN
on/IN
corporate/JJ
earnings/NNS
is/VBZ
the/DT
foremost/JJ
concern/NN
of/IN
many/JJ
traders/NNS
and/CC
analysts/NNS
./.
Unless/IN
the/DT
Federal/NNP
Reserve/NNP
eases/VBZ
interest/NN
rates/NNS
soon/RB
to/TO
stimulate/VB
the/DT
economy/NN
,/,
profits/NNS
could/MD
remain/VB
disappointing/JJ
./.
Yesterday/NN
's/POS
major/JJ
economic/JJ
news/NN
--/:
a/DT
0.2/CD
%/NN
rise/NN
in/IN
the/DT
September/NNP
index/NN
of/IN
leading/JJ
economic/JJ
indicators/NNS
--/:
had/VBD
little/JJ
impact/NN
on/IN
financial/JJ
markets/NNS
./.
But/CC
the/DT
next/JJ
important/JJ
piece/NN
of/IN
news/NN
on/IN
the/DT
economy/NN
's/POS
health/NN
--/:
this/DT
morning/NN
's/POS
release/NN
of/IN
the/DT
national/JJ
purchasing/NN
manager/NN
's/POS
survey/NN
for/IN
October/NNP
--/:
could/MD
prompt/VB
investors/NNS
into/IN
action/NN
./.
A/DT
report/NN
late/RB
yesterday/NN
that/IN
the/DT
Chicago-area/JJ
purchasing/NN
managers/NNS
survey/NN
showed/VBD
increased/JJ
economic/JJ
activity/NN
in/IN
that/DT
part/NN
of/IN
the/DT
country/NN
cut/VBD
into/IN
bond-price/JJ
gains/NNS
./.
If/IN
the/DT
national/JJ
survey/NN
confirms/VBZ
a/DT
pickup/NN
in/IN
the/DT
manufacturing/NN
sector/NN
,/,
it/PRP
could/MD
further/RBR
depress/VB
bond/NN
prices/NNS
while/IN
bolstering/VBG
stock/NN
prices/NNS
and/CC
the/DT
dollar/NN
./.
Meanwhile/RB
,/,
bond/NN
investors/NNS
are/VBP
laboring/VBG
under/IN
the/DT
onus/NN
of/IN
a/DT
national/JJ
debt/NN
ceiling/NN
debate/NN
./.
Although/IN
the/DT
Treasury/NNP
is/VBZ
expected/VBN
to/TO
announce/VB
details/NNS
of/IN
its/PRP$
November/NNP
quarterly/JJ
refunding/NN
operation/NN
today/NN
,/,
the/DT
Nov./NNP
79/CD
schedule/NN
could/MD
be/VB
delayed/VBN
unless/IN
Congress/NNP
and/CC
the/DT
president/NN
act/NN
soon/RB
to/TO
lift/VB
the/DT
nation/NN
's/POS
debt/NN
ceiling/NN
./.
In/IN
major/JJ
market/NN
activity/NN
:/:
Stock/NNP
prices/NNS
rallied/VBD
in/IN
active/JJ
trading/NN
./.
Volume/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
totaled/VBD
176.1/CD
million/CD
shares/NNS
./.
Advancing/VBG
issues/NNS
on/IN
the/DT
Big/NNP
Board/NNP
surged/VBD
ahead/RB
of/IN
decliners/NNS
1,111/CD
to/TO
Bond/NN
prices/NNS
rose/VBD
./.
The/DT
Treasury/NNP
's/POS
benchmark/JJ
30-year/JJ
bond/NN
gained/VBD
less/JJR
than/IN
a/DT
quarter/NN
of/IN
a/DT
point/NN
,/,
or/CC
less/JJR
than/IN
$/$
2.50/CD
for/IN
each/DT
$/$
1,000/CD
of/IN
face/NN
amount/NN
./.
The/DT
yield/NN
on/IN
the/DT
issue/NN
slipped/VBD
to/TO
7.91/CD
%/NN
./.
The/DT
dollar/NN
gained/VBN
against/IN
most/JJS
foreign/JJ
currencies/NNS
./.
In/IN
late/JJ
afternoon/NN
New/NNP
York/NNP
trading/NN
,/,
the/DT
dollar/NN
was/VBD
at/IN
1.8415/CD
marks/NNS
and/CC
142.85/CD
yen/NNS
compared/VBN
with/IN
1.8340/CD
marks/NNS
and/CC
141.90/CD
yen/NNS
late/JJ
Monday/NNP
./.
Bouygues/NNP
S.A./NNP
,/,
a/DT
diversified/JJ
construction/NN
concern/NN
based/VBN
in/IN
Paris/NNP
,/,
said/VBD
its/PRP$
consolidated/JJ
profit/NN
for/IN
the/DT
1989/CD
first/JJ
half/NN
,/,
after/IN
payments/NNS
to/TO
minority/NN
interests/NNS
,/,
surged/VBD
to/TO
188/CD
million/CD
French/JJ
francs/NNS
$/$
30.2/CD
million/CD
65/CD
million/CD
francs/NNS
a/DT
year/NN
earlier/RBR
./.
Revenue/NN
rose/VBD
21/CD
%/NN
to/TO
22.61/CD
billion/CD
francs/NNS
from/IN
18.69/CD
billion/CD
francs/NNS
./.
The/DT
company/NN
did/VBD
n't/RB
specify/VB
reasons/NNS
for/IN
the/DT
strong/JJ
earnings/NNS
gain/NN
./.
But/CC
Bouygues/NNP
said/VBD
its/PRP$
first-half/JJ
profit/NN
is/VBZ
n't/RB
indicative/JJ
of/IN
the/DT
full-year/JJ
trend/NN
because/IN
of/IN
the/DT
highly/RB
seasonal/JJ
nature/NN
of/IN
many/JJ
of/IN
the/DT
company/NN
's/POS
activities/NNS
./.
For/IN
all/DT
of/IN
1988/CD
,/,
Bouygues/NNS
had/VBD
consolidated/JJ
profit/NN
of/IN
519/CD
million/CD
francs/NNS
,/,
after/IN
payments/NNS
to/TO
minority/NN
interests/NNS
,/,
on/IN
revenue/NN
of/IN
50/CD
billion/CD
francs/NNS
./.
The/DT
group/NN
has/VBZ
forecast/VBN
1989/CD
revenue/NN
of/IN
56.9/CD
billion/CD
francs/NNS
./.
QVC/NNP
Network/NNP
Inc./NNP
said/VBD
it/PRP
completed/VBD
its/PRP$
acquisition/NN
of/IN
CVN/NNP
Cos./NNP
for/IN
about/RB
$/$
423/CD
million/CD
./.
QVC/NNP
agreed/VBD
to/TO
pay/VB
$/$
19/CD
and/CC
one-eighth/NN
QVC/NNP
share/NN
for/IN
each/DT
of/IN
CVN/NNP
's/POS
20/CD
million/CD
fully/RB
diluted/JJ
shares/NNS
./.
The/DT
acquisition/NN
brings/VBZ
together/RB
the/DT
two/CD
largest/JJS
competitors/NNS
to/TO
Home/NNP
Shopping/NNP
Network/NNP
Inc./NNP
,/,
which/WDT
now/RB
reaches/VBZ
more/JJR
viewers/NNS
than/IN
any/DT
other/JJ
company/NN
in/IN
the/DT
video/NN
shopping/NN
industry/NN
./.
Among/IN
them/PRP
,/,
Home/NNP
Shopping/NNP
,/,
QVC/NNP
and/CC
CVN/NNP
already/RB
control/VBP
most/JJS
of/IN
that/DT
young/JJ
and/CC
fast-growing/JJ
market/NN
,/,
which/WDT
last/JJ
year/NN
had/VBD
sales/NNS
of/IN
about/RB
$/$
1.4/CD
billion/CD
./.
Coast/NNP
Savings/NNP
Financial/NNP
Inc./NNP
reported/VBD
a/DT
third-quarter/JJ
loss/NN
,/,
citing/VBG
a/DT
previously/RB
announced/VBN
capital/NN
restructuring/NN
program/NN
./.
The/DT
Los/NNP
Angeles/NNP
thrift/NN
holding/VBG
company/NN
said/VBD
it/PRP
had/VBD
a/DT
loss/NN
of/IN
$/$
92.2/CD
million/CD
,/,
or/CC
$/$
6.98/CD
a/DT
share/NN
,/,
for/IN
the/DT
quarter/NN
ended/VBN
Sept./NN
30/CD
./.
Coast/NNP
earned/VBD
$/$
10.2/CD
million/CD
,/,
or/CC
67/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
year-ago/JJ
quarter/NN
./.
The/DT
year-ago/JJ
results/NNS
have/VB
been/VBN
restated/VBN
to/TO
comply/VB
with/IN
government/NN
regulations/NNS
./.
The/DT
restructuring/NN
program/NN
is/VBZ
designed/VBN
to/TO
increase/VB
the/DT
company/NN
's/POS
tangible/JJ
capital/NN
ratio/NN
./.
It/PRP
includes/VBZ
removing/VBG
$/$
242/CD
million/CD
in/IN
good/JJ
will/NN
from/IN
the/DT
books/NNS
,/,
issuing/VBG
$/$
150/CD
million/CD
in/IN
preferred/JJ
stock/NN
and/CC
commencing/VBG
an/DT
exchange/NN
offer/NN
for/IN
$/$
52/CD
million/CD
in/IN
convertible/JJ
bonds/NNS
./.
During/IN
the/DT
third/JJ
quarter/NN
,/,
the/DT
company/NN
charged/VBN
about/RB
$/$
46/CD
million/CD
against/IN
earnings/NNS
in/IN
reducing/VBG
goodwill/NN
,/,
added/VBD
$/$
20/CD
million/CD
to/TO
its/PRP$
general/JJ
loan/NN
loss/NN
reserves/NNS
and/CC
established/VBD
a/DT
$/$
30/CD
million/CD
reserve/NN
for/IN
its/PRP$
high-yield/JJ
bond/NN
portfolio/NN
./.
The/DT
company/NN
said/VBD
its/PRP$
junk-bond/JJ
portfolio/NN
after/IN
these/DT
moves/NNS
had/VBD
been/VBN
reduced/VBN
to/TO
less/JJR
than/IN
1/CD
%/NN
of/IN
assets/NNS
./.
Philip/NNP
Morris/NNP
Cos./NNP
is/VBZ
launching/VBG
a/DT
massive/JJ
corporate/JJ
advertising/NN
campaign/NN
that/WDT
will/MD
put/VB
the/DT
tobacco/NN
giant/NN
's/POS
name/NN
in/IN
TV/NN
commercials/NNS
for/IN
the/DT
first/JJ
time/NN
since/IN
the/DT
early/JJ
1950s/CD
,/,
when/WRB
it/PRP
stopped/VBD
advertising/VBG
its/PRP$
namesake/NN
cigarette/NN
brand/NN
on/IN
television/NN
./.
The/DT
campaign/NN
,/,
a/DT
patriotic/JJ
celebration/NN
of/IN
the/DT
200th/JJ
anniversary/NN
of/IN
the/DT
Bill/NNP
of/IN
Rights/NNPS
,/,
does/VBZ
n't/RB
mention/VB
cigarettes/NNS
or/CC
smoking/NN
;/:
cigarette/NN
ads/NNS
have/VBP
been/VBN
prohibited/VBN
on/IN
television/NN
since/IN
1971/CD
./.
But/CC
even/RB
before/IN
it/PRP
begins/VBZ
,/,
the/DT
campaign/NN
is/VBZ
drawing/VBG
fire/NN
from/IN
anti-smoking/JJ
advocates/NNS
,/,
who/WP
criticize/VB
Philip/NNP
Morris/NNP
's/POS
attempt/NN
to/TO
bolster/VB
its/PRP$
beleaguered/JJ
image/NN
by/IN
wrapping/VBG
itself/PRP
in/IN
the/DT
document/NN
that/WDT
is/VBZ
a/DT
cornerstone/NN
of/IN
American/JJ
democracy/NN
./.
Philip/NNP
Morris/NNP
,/,
which/WDT
became/VBD
the/DT
U.S./NNP
's/POS
largest/JJS
food/NN
company/NN
last/JJ
year/NN
with/IN
its/PRP$
$/$
12.9/CD
billion/CD
acquisition/NN
of/IN
Kraft/NNP
Inc./NNP
,/,
seems/VBZ
determined/JJ
to/TO
evolve/VB
beyond/IN
its/PRP$
roots/NNS
in/IN
Marlboro/NNP
country/NN
./.
The/DT
company/NN
's/POS
research/NN
suggests/VBZ
that/IN
its/PRP$
name/NN
recognition/NN
among/IN
most/JJS
consumers/NNS
remains/VBZ
unusually/RB
low/JJ
,/,
although/IN
its/PRP$
array/NN
of/IN
brands/NNS
--/:
including/VBG
Maxwell/NNP
House/NNP
coffee/NN
,/,
Jell-O/NNP
,/,
Cheez/NNP
Whiz/NNP
,/,
and/CC
Miller/NNP
beer/NN
--/:
blanket/VBP
supermarket/NN
shelves/NNS
./.
The/DT
company/NN
is/VBZ
expected/VBN
to/TO
spend/VB
about/RB
$/$
30/CD
million/CD
a/DT
year/NN
on/IN
its/PRP$
two-year/JJ
corporate/JJ
campaign/NN
,/,
created/VBN
by/IN
WPP/NNP
Group/NNP
's/POS
Ogilvy/NNP
&/CC
Mather/NNP
unit/NN
in/IN
New/NNP
York/NNP
./.
The/DT
initial/JJ
spots/NNS
will/MD
appear/VB
during/IN
morning/NN
and/CC
prime-time/NN
news/NN
shows/NNS
./.
Philip/NNP
Morris/NNP
hopes/VBZ
that/IN
by/IN
taking/VBG
its/PRP$
Bill/NNP
of/IN
Rights/NNPS
theme/NN
to/TO
the/DT
airwaves/NNS
,/,
in/IN
addition/NN
to/TO
publications/NNS
,/,
it/PRP
will/MD
reach/VB
the/DT
broadest/JJS
possible/JJ
audience/NN
./.
Until/IN
now/RB
,/,
its/PRP$
corporate/JJ
ads/NNS
,/,
mainly/RB
promoting/VBG
its/PRP$
sponsorship/NN
of/IN
the/DT
arts/NNS
,/,
have/VB
appeared/VBN
almost/RB
exclusively/RB
in/IN
newspapers/NNS
and/CC
magazines/NNS
./.
``/``
Most/JJS
people/NNS
--/:
whether/IN
in/IN
Toledo/NNP
,/,
Tucson/NNP
or/CC
Topeka/NNP
--/:
have/VBP
n't/RB
got/VBN
a/DT
clue/NN
who/WP
we/PRP
are/VBP
,/,
''/''
says/VBZ
Guy/NNP
L./NNP
Smith/NNP
,/,
Philip/NNP
Morris/NNP
's/POS
vice/NN
president/NN
of/IN
corporate/JJ
affairs/NNS
./.
``/``
If/IN
they/PRP
think/VBP
well/RB
of/IN
the/DT
company/NN
through/IN
our/PRP$
support/NN
of/IN
the/DT
Bill/NNP
of/IN
Rights/NNPS
,/,
it/PRP
follows/VBZ
they/PRP
'll/MD
think/VB
well/RB
of/IN
our/PRP$
products/NNS
./.
''/''
Mr./NNP
Smith/NNP
says/VBZ
the/DT
Bill/NNP
of/IN
Rights/NNPS
commercial/NN
,/,
which/WDT
trumpets/VBZ
the/DT
themes/NNS
of/IN
liberty/NN
and/CC
freedom/NN
of/IN
expression/NN
,/,
is/VBZ
n't/RB
designed/VBN
to/TO
have/VB
any/DT
special/JJ
appeal/NN
for/IN
smokers/NNS
./.
Although/IN
Philip/NNP
Morris/NNP
typically/RB
tries/VBZ
to/TO
defend/VB
the/DT
rights/NNS
of/IN
smokers/NNS
with/IN
free-choice/JJ
arguments/NNS
,/,
``/``
this/DT
has/VBZ
nothing/NN
to/TO
do/VB
with/IN
cigarettes/NNS
,/,
nor/CC
will/MD
it/PRP
ever/RB
,/,
''/''
the/DT
spokesman/NN
says/VBZ
./.
But/CC
some/DT
anti-smoking/JJ
activists/NNS
disagree/VBP
,/,
expressing/VBG
anger/NN
at/IN
what/WP
they/PRP
see/VBP
as/IN
the/DT
company/NN
's/POS
attempt/NN
to/TO
purchase/VB
innocence/NN
by/IN
association/NN
./.
``/``
I/PRP
'm/VBP
outraged/JJ
because/IN
this/DT
company/NN
is/VBZ
portraying/VBG
itself/PRP
at/IN
the/DT
heart/NN
of/IN
American/JJ
culture/NN
and/CC
political/JJ
freedom/NN
and/CC
in/IN
fact/NN
it/PRP
's/VBZ
a/DT
killer/NN
,/,
''/''
says/VBZ
Michael/NNP
Pertschuk/NNP
,/,
former/JJ
chairman/NN
of/IN
the/DT
Federal/NNP
Trade/NNP
Commission/NNP
and/CC
a/DT
tobacco-industry/NN
critic/NN
./.
``/``
It/PRP
should/MD
be/VB
treated/VBN
like/IN
the/DT
Medellin/NNP
drug/NN
mafia/NN
,/,
not/RB
the/DT
Founding/VBG
Fathers/NNS
./.
''/''
Mr./NNP
Pertschuk/NNP
adds/VBZ
that/IN
the/DT
new/JJ
commercial/JJ
dovetails/VBZ
perfectly/RB
with/IN
major/JJ
aspects/NNS
of/IN
Philip/NNP
Morris/NNP
's/POS
political/JJ
strategy/NN
./.
These/DT
include/VB
trying/VBG
to/TO
protect/VB
its/PRP$
print/NN
advertising/NN
by/IN
invoking/VBG
the/DT
First/NNP
Amendment/NNP
,/,
and/CC
wooing/VBG
blacks/NNS
by/IN
portraying/VBG
itself/PRP
as/IN
a/DT
protector/NN
of/IN
civil/JJ
rights/NNS
./.
The/DT
commercial/NN
features/NNS
,/,
among/IN
others/NNS
,/,
the/DT
voice/NN
of/IN
Martin/NNP
Luther/NNP
King/NNP
Jr./NNP
,/,
the/DT
slain/VBN
civil/JJ
rights/NNS
leader/NN
./.
Many/JJ
marketers/NNS
say/VBP
Philip/NNP
Morris/NNP
's/POS
approach/NN
will/MD
be/VB
effective/JJ
,/,
but/CC
they/PRP
agree/VBP
that/IN
the/DT
ads/NNS
'/POS
implied/VBN
smoking/NN
message/NN
is/VBZ
unmistakable/JJ
./.
``/``
This/DT
is/VBZ
clever/JJ
,/,
subliminal/JJ
advertising/NN
that/WDT
really/RB
says/VBZ
,/,
`/``
Smokers/NNS
have/VB
rights/NNS
,/,
too/RB
,/,
'/''
''/''
says/VBZ
Al/NNP
Ries/NNP
,/,
chairman/NN
of/IN
Trout/NNP
&/CC
Ries/NNP
Inc./NNP
,/,
a/DT
Greenwich/NNP
,/,
Conn./NNP
,/,
marketing/NN
strategy/NN
firm/NN
./.
``/``
This/DT
is/VBZ
designed/VBN
to/TO
get/VB
the/DT
wagons/NNS
in/IN
a/DT
circle/NN
and/CC
defend/VB
the/DT
smoking/NN
franchise/NN
./.
''/''
Richard/NNP
Winger/NNP
,/,
a/DT
partner/NN
at/IN
Boston/NNP
Consulting/NNP
Group/NNP
,/,
adds/VBZ
:/:
``/``
It/PRP
's/VBZ
very/RB
popular/JJ
to/TO
drape/VB
yourself/PRP
in/IN
the/DT
flag/NN
these/DT
days/NNS
./.
If/IN
you/PRP
can/MD
do/VB
that/DT
and/CC
at/IN
the/DT
same/JJ
time/NN
send/VB
a/DT
message/NN
that/WDT
supports/VBZ
your/PRP$
business/NN
,/,
that/DT
's/VBZ
brilliant/JJ
./.
''/''
RJR/NNP
Nabisco/NNP
Inc./NNP
and/CC
American/NNP
Brands/NNP
Inc./NNP
say/VBP
they/PRP
have/VBP
no/DT
plans/NNS
to/TO
follow/VB
Philip/NNP
Morris/NNP
's/POS
lead/NN
./.
RJR/NNP
Nabisco/NNP
is/VBZ
currently/RB
under/IN
fire/NN
for/IN
having/VBG
sent/VBD
80-second/JJ
videotapes/NNS
touting/VBG
its/PRP$
Now/NNP
brand/NN
to/TO
consumers/NNS
who/WP
smoke/VBP
American/NNP
Brands/NNP
'/POS
Carltons/NNPS
./.
Despite/IN
the/DT
criticism/NN
,/,
Philip/NNP
Morris/NNP
's/POS
corporate/JJ
campaign/NN
runs/VBZ
little/JJ
risk/NN
of/IN
getting/VBG
yanked/VBN
off/IN
the/DT
tube/NN
./.
``/``
They/PRP
are/VBP
n't/RB
showing/VBG
James/NNP
Madison/NNP
taking/VBG
a/DT
puff/NN
or/CC
lighting/VBG
up/RP
,/,
''/''
says/VBZ
Laurence/NNP
Tribe/NNP
,/,
a/DT
professor/NN
of/IN
constitutional/JJ
law/NN
at/IN
Harvard/NNP
University/NNP
./.
``/``
All/DT
they/PRP
are/VBP
trying/VBG
to/TO
do/VB
is/VBZ
borrow/VB
some/DT
of/IN
the/DT
legitimacy/NN
of/IN
the/DT
Bill/NNP
of/IN
Rights/NNPS
itself/PRP
./.
''/''
Technology/NN
stocks/NNS
woke/VBD
up/RP
,/,
helping/VBG
the/DT
over-the-counter/JJ
market/NN
rise/VB
from/IN
its/PRP$
recent/JJ
doldrums/NNS
./.
The/DT
Nasdaq/NNP
Composite/NNP
Index/NNP
surged/VBD
4.26/CD
,/,
or/CC
about/RB
0.94/CD
%/NN
,/,
to/TO
455.63/CD
./.
It/PRP
was/VBD
the/DT
market/NN
's/POS
biggest/JJS
gain/NN
since/IN
rising/VBG
more/RBR
than/IN
7/CD
points/NNS
on/IN
Oct./NNP
19/CD
./.
Advancing/VBG
OTC/NNP
stocks/NNS
outpaced/VBD
decliners/NNS
by/IN
1,120/CD
to/TO
806/CD
./.
But/CC
the/DT
move/NN
lagged/VBD
a/DT
stronger/JJR
rise/NN
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
issues/NNS
./.
The/DT
Big/NNP
Board/NNP
's/POS
composite/JJ
index/NN
was/VBD
up/RB
more/JJR
than/IN
1.4/CD
%/NN
,/,
and/CC
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
jumped/VBD
1.6/CD
%/NN
./.
Nasdaq/NNP
's/POS
gain/NN
was/VBD
led/VBN
by/IN
its/PRP$
biggest/JJS
industrial/JJ
stocks/NNS
./.
The/DT
Nasdaq/NNP
100/CD
rose/VBD
7.08/CD
to/TO
445.23/CD
./.
The/DT
Financial/NNP
Index/NNP
of/IN
100/CD
biggest/JJS
banks/NNS
and/CC
insurance/NN
issues/NNS
added/VBD
2.19/CD
to/TO
447.76/CD
./.
Other/JJ
strong/JJ
sectors/NNS
were/VBD
indicated/VBN
in/IN
gains/NNS
of/IN
the/DT
Transportation/NNP
Index/NNP
,/,
up/RB
7.55/CD
to/TO
475.35/CD
,/,
and/CC
the/DT
Utility/NNP
Index/NNP
,/,
up/RB
8.68/CD
to/TO
730.37/CD
./.
National/NNP
Market/NNP
System/NNP
volume/NN
improved/VBD
to/TO
94,425,000/CD
shares/NNS
from/IN
71.7/CD
million/CD
Monday/NNP
./.
Many/JJ
of/IN
Nasdaq/NNP
's/POS
biggest/JJS
technology/NN
stocks/NNS
were/VBD
in/IN
the/DT
forefront/NN
of/IN
the/DT
rally/NN
./.
Microsoft/NNP
added/VBD
2/CD
1\/8/CD
to/TO
81/CD
3\/4/CD
and/CC
Oracle/NNP
Systems/NNP
rose/VBD
1/CD
1\/2/CD
to/TO
23/CD
1\/4/CD
./.
Intel/NNP
was/VBD
up/RB
1/CD
3\/8/CD
to/TO
33/CD
3\/4/CD
./.
But/CC
traders/NNS
who/WP
watch/VBP
the/DT
stocks/NNS
warned/VBD
the/DT
rise/NN
may/MD
be/VB
yet/RB
another/DT
``/``
one-day/JJ
phenomenon/NN
./.
''/''
Technology/NN
stocks/NNS
bore/VBD
the/DT
brunt/NN
of/IN
the/DT
OTC/NNP
market/NN
's/POS
recent/JJ
sell-off/NN
,/,
and/CC
traders/NNS
say/VBP
it/PRP
's/VBZ
natural/JJ
that/IN
they/PRP
rebound/VB
sharply/RB
now/RB
that/IN
the/DT
market/NN
has/VBZ
turned/VBN
around/RP
./.
But/CC
,/,
they/PRP
caution/VBP
,/,
conservative/JJ
investors/NNS
would/MD
do/VB
well/RB
to/TO
sell/VB
into/IN
the/DT
strength/NN
./.
``/``
They/PRP
are/VBP
always/RB
the/DT
first/JJ
to/TO
be/VB
sold/VBN
when/WRB
people/NNS
are/VBP
taking/VBG
profits/NNS
,/,
because/IN
people/NNS
are/VBP
most/RBS
scared/JJ
of/IN
the/DT
high-technology/JJ
stocks/NNS
,/,
''/''
said/VBD
Robin/NNP
West/NNP
,/,
director/NN
of/IN
research/NN
for/IN
Ladenburg/NNP
Thalmann/NNP
's/POS
Lanyi/NNP
division/NN
,/,
which/WDT
specializes/VBZ
in/IN
emerging/VBG
growth/NN
stocks/NNS
./.
The/DT
technology/NN
group/NN
includes/VBZ
many/JJ
of/IN
the/DT
OTC/NNP
market/NN
's/POS
biggest/JJS
stocks/NNS
,/,
which/WDT
dominate/VBP
the/DT
market-weighted/JJ
Nasdaq/NNP
Composite/NNP
Index/NNP
./.
Analysts/NNS
say/VBP
rallies/NNS
in/IN
the/DT
group/NN
historically/RB
have/VBP
lifted/VBN
the/DT
market/NN
,/,
while/IN
weakness/NN
in/IN
the/DT
sector/NN
often/RB
sank/VBD
unlisted/JJ
share/NN
prices/NNS
broadly/RB
./.
But/CC
increasing/VBG
volatility/NN
in/IN
the/DT
sector/NN
has/VBZ
exhausted/VBN
investors/NNS
who/WP
try/VBP
to/TO
follow/VB
its/PRP$
dips/NNS
and/CC
swings/NNS
./.
The/DT
stocks/NNS
have/VBP
been/VBN
pummeled/VBN
repeatedly/RB
by/IN
inventory/NN
gluts/NNS
and/CC
disappointing/JJ
earnings/NNS
as/IN
the/DT
industry/NN
matures/VBZ
and/CC
slows/VBZ
./.
Some/DT
even/RB
claim/VBP
the/DT
group/NN
has/VBZ
become/VBN
a/DT
lagging/JJ
,/,
not/RB
leading/JJ
,/,
indicator/NN
./.
The/DT
technology/NN
sector/NN
of/IN
the/DT
Dow/NNP
Jones/NNP
Equity/NNP
Market/NNP
Index/NNP
has/VBZ
risen/VBN
only/RB
about/RB
6.24/CD
%/NN
this/DT
year/NN
,/,
while/IN
the/DT
Nasdaq/NNP
Composite/NNP
Index/NNP
has/VBZ
gained/VBN
18.35/CD
%/NN
./.
While/IN
the/DT
composite/JJ
index/NN
lost/VBD
less/JJR
than/IN
a/DT
third/NN
of/IN
its/PRP$
year-to-date/JJ
gains/NNS
in/IN
the/DT
market/NN
's/POS
recent/JJ
decline/NN
,/,
the/DT
technology/NN
group/NN
's/POS
gains/NNS
were/VBD
more/RBR
than/IN
halved/JJ
./.
The/DT
OTC/NNP
technology/NN
sector/NN
is/VBZ
far/RB
from/IN
a/DT
cohesive/JJ
unit/NN
./.
The/DT
group/NN
is/VBZ
divided/VBN
primarily/RB
between/IN
software/NN
,/,
semiconductors/NNS
and/CC
computers/NNS
./.
While/IN
computer/NN
stocks/NNS
have/VBP
taken/VBN
the/DT
biggest/JJS
hit/NN
from/IN
the/DT
slowdown/NN
in/IN
the/DT
industry/NN
,/,
many/JJ
software/NN
and/CC
semiconductor/NN
stocks/NNS
have/VBP
continued/VBN
to/TO
outperform/VB
the/DT
market/NN
./.
Microsoft/NNP
is/VBZ
up/RB
more/JJR
than/IN
50/CD
%/NN
this/DT
year/NN
,/,
while/IN
Intel/NNP
is/VBZ
up/RB
more/JJR
than/IN
40/CD
%/NN
./.
The/DT
technology/NN
group/NN
is/VBZ
also/RB
split/VBN
between/IN
large/JJ
companies/NNS
and/CC
small/JJ
,/,
with/IN
the/DT
biggest/JJS
stocks/NNS
trading/VBG
as/IN
blue-chip/JJ
issues/NNS
in/IN
the/DT
institutional/JJ
marketplace/NN
,/,
while/IN
the/DT
smaller/JJR
stocks/NNS
churn/VBP
on/IN
their/PRP$
individual/JJ
merits/NNS
or/CC
faults/NNS
,/,
analysts/NNS
say/VBP
./.
The/DT
volatility/NN
of/IN
smaller/JJR
technology/NN
companies/NNS
has/VBZ
served/VBN
the/DT
group/NN
well/RB
overall/RB
in/IN
recent/JJ
stock/NN
trading/NN
,/,
according/VBG
to/TO
Hambrecht/NNP
&/CC
Quist/NNP
's/POS
technology/NN
stock/NN
indexes/NNS
./.
The/DT
brokerage/NN
firm/NN
tracks/VBZ
technology/NN
stocks/NNS
with/IN
its/PRP$
Technology/NNP
Index/NNP
,/,
which/WDT
appreciated/VBD
only/RB
10.59/CD
%/NN
in/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
this/DT
year/NN
./.
But/CC
the/DT
firm/NN
also/RB
tracks/VBZ
smaller/JJR
technology/NN
companies/NNS
as/IN
a/DT
subset/NN
of/IN
the/DT
larger/JJR
group/NN
./.
That/DT
index/NN
,/,
which/WDT
contains/VBZ
technology/NN
companies/NNS
with/IN
annual/JJ
revenues/NNS
of/IN
$/$
200/CD
million/CD
or/CC
less/JJR
,/,
gained/VBD
17.97/CD
%/NN
by/IN
Sept./NNP
30/CD
this/DT
year/NN
--/:
still/RB
lagging/VBG
the/DT
S&P/NN
500/CD
,/,
but/CC
leading/VBG
larger/JJR
technology/NN
firms/NNS
./.
Yesterday/NN
,/,
bank/NN
stocks/NNS
lagged/VBD
behind/IN
the/DT
overall/JJ
OTC/NNP
market/NN
./.
The/DT
Nasdaq/NNP
Bank/NNP
Index/NNP
rose/VBD
0.17/CD
to/TO
432.78/CD
./.
George/NNP
Jennison/NNP
,/,
who/WP
trades/VBZ
bank/NN
stocks/NNS
for/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
,/,
said/VBD
the/DT
stocks/NNS
tend/VBP
to/TO
fall/VB
behind/RB
because/IN
they/PRP
are/VBP
n't/RB
traded/VBN
as/RB
much/RB
as/IN
many/JJ
other/JJ
issues/NNS
./.
But/CC
,/,
he/PRP
added/VBD
,/,
interest-rate-sensitive/JJ
stocks/NNS
in/IN
general/JJ
are/VBP
stalled/VBN
./.
``/``
The/DT
interest-rate/NN
sensitives/NNS
are/VBP
n't/RB
rallying/VBG
with/IN
the/DT
rest/NN
of/IN
the/DT
market/NN
because/IN
of/IN
fears/NNS
about/IN
what/WP
the/DT
Federal/NNP
Reserve/NNP
Mr./NNP
Jennison/NNP
said/VBD
./.
He/PRP
said/VBD
that/IN
investors/NNS
will/MD
scour/VB
the/DT
October/NNP
employment/NN
report/NN
,/,
due/JJ
out/RB
Friday/NNP
,/,
for/IN
clues/NNS
about/IN
the/DT
direction/NN
of/IN
the/DT
economy/NN
and/CC
the/DT
immediate/JJ
outlook/NN
for/IN
interest/NN
rates/NNS
./.
On/IN
the/DT
other/JJ
hand/NN
,/,
Mr./NNP
Jennison/NNP
noted/VBD
that/IN
the/DT
recent/JJ
slide/NN
in/IN
bank/NN
and/CC
thrift/NN
stocks/NNS
was/VBD
at/IN
least/JJS
halted/VBN
yesterday/NN
./.
Shearson/NNP
Lehman/NNP
Hutton/NNP
gave/VBD
small/JJ
investors/NNS
some/DT
welcome/JJ
news/NN
by/IN
announcing/VBG
that/IN
it/PRP
would/MD
no/RB
longer/RBR
handle/VB
index-arbitrage-related/JJ
program/NN
trades/NNS
for/IN
its/PRP$
accounts/NNS
./.
Shearson/NNP
,/,
with/IN
its/PRP$
in-house/JJ
order/NN
execution/NN
system/NN
,/,
has/VBZ
handled/VBN
the/DT
bulk/NN
of/IN
such/JJ
program/NN
trades/NNS
in/IN
the/DT
over-the-counter/JJ
market/NN
./.
The/DT
trading/NN
has/VBZ
been/VBN
blamed/VBN
for/IN
much/JJ
of/IN
the/DT
market/NN
's/POS
recent/JJ
volatility/NN
./.
Jaguar/NNP
topped/VBD
the/DT
most-active/JJ
list/NN
,/,
as/IN
its/PRP$
American/JJ
depository/NN
receipts/NNS
climbed/VBD
1/CD
3\/4/CD
to/TO
13/CD
5\/8/CD
with/IN
more/JJR
than/IN
6.6/CD
million/CD
ADRs/NNS
traded/VBN
./.
Britain/NNP
said/VBD
it/PRP
would/MD
waive/VB
its/PRP$
``/``
golden/JJ
share/NN
''/''
in/IN
the/DT
luxury/JJ
auto/NN
maker/NN
if/IN
shareholders/NNS
vote/VBP
to/TO
allow/VB
a/DT
suitor/NN
to/TO
acquire/VB
more/JJR
than/IN
15/CD
%/NN
of/IN
the/DT
company/NN
./.
The/DT
announcement/NN
effectively/RB
removes/VBZ
the/DT
British/JJ
government/NN
as/IN
an/DT
impediment/NN
to/TO
a/DT
takeover/NN
of/IN
the/DT
company/NN
,/,
which/WDT
is/VBZ
being/VBG
stalked/VBN
by/IN
General/NNP
Motors/NNP
and/CC
Ford/NNP
./.
Gen-Probe/NNP
was/VBD
another/DT
active/JJ
takeover/NN
stock/NN
./.
It/PRP
surged/VBD
2/CD
3\/4/CD
to/TO
6/CD
on/IN
volume/NN
of/IN
more/JJR
than/IN
1.7/CD
million/CD
shares/NNS
after/IN
the/DT
company/NN
agreed/VBD
to/TO
be/VB
acquired/VBN
by/IN
Japan/NNP
's/POS
Chugai/NNP
Pharmaceutical/NNP
for/IN
about/RB
$/$
110/CD
million/CD
--/:
almost/RB
double/RB
the/DT
market/NN
price/NN
of/IN
Gen-Probe/NNP
's/POS
stock/NN
./.
Priam/NNP
Corp./NNP
lost/VBD
5\/32/CD
to/TO
3\/32/CD
after/IN
filing/VBG
for/IN
protection/NN
from/IN
its/PRP$
creditors/NNS
under/IN
Chapter/NN
11/CD
of/IN
the/DT
federal/JJ
Bankruptcy/NNP
Code/NNP
./.
MCI/NNP
Communications/NNP
added/VBD
1/CD
1\/2/CD
to/TO
43/CD
3\/8/CD
./.
The/DT
company/NN
has/VBZ
toted/VBN
up/RP
over/IN
$/$
40/CD
million/CD
in/IN
contracts/NNS
in/IN
the/DT
past/JJ
two/CD
days/NNS
./.
Monday/NNP
,/,
MCI/NNP
announced/VBD
a/DT
$/$
27/CD
million/CD
multiyear/JJ
contract/NN
with/IN
the/DT
investment/NN
bank/NN
Stuart-James/NNP
./.
Yesterday/NN
,/,
it/PRP
received/VBD
a/DT
$/$
15/CD
million/CD
,/,
three-year/JJ
contract/NN
from/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
./.
Florida/NNP
National/NNP
Banks/NNP
of/IN
Fla./NNP
slid/VBD
1/CD
1\/8/CD
to/TO
24/CD
3\/4/CD
./.
Late/RB
Monday/NNP
,/,
the/DT
Federal/NNP
Reserve/NNP
Board/NNP
said/VBD
it/PRP
is/VBZ
delaying/VBG
approval/NN
of/IN
First/NNP
Union/NNP
Corp./NNP
's/POS
proposed/JJ
$/$
849/CD
million/CD
acquisition/NN
of/IN
Florida/NNP
National/NNP
Banks/NNPS
pending/VBG
the/DT
outcome/NN
of/IN
an/DT
examination/NN
into/IN
First/NNP
Union/NNP
's/POS
lending/NN
practices/NNS
in/IN
low-income/JJ
heighborhoods/NNS
./.
Florida/NNP
National/NNP
said/VBD
yesterday/NN
that/IN
it/PRP
remains/VBZ
committed/JJ
to/TO
the/DT
merger/NN
./.
Dycom/NNP
Industries/NNP
gained/VBD
3\/4/CD
to/TO
16/CD
3\/4/CD
after/IN
it/PRP
said/VBD
it/PRP
agreed/VBD
to/TO
buy/VB
Ansco/NNP
&/CC
Associates/NNP
and/CC
two/CD
affiliates/NNS
for/IN
cash/NN
and/CC
stock/NN
./.
The/DT
value/NN
of/IN
the/DT
transaction/NN
was/VBD
n't/RB
disclosed/VBN
./.
The/DT
companies/NNS
being/VBG
acquired/VBN
provide/VBP
telecommunications/NNS|NN
services/NNS
to/TO
the/DT
telephone/NN
industry/NN
./.
Willamette/NNP
Industries/NNP
,/,
whose/WP$
stock/NN
has/VBZ
suffered/VBN
steep/JJ
losses/NNS
in/IN
recent/JJ
sessions/NNS
,/,
surged/VBD
1/CD
1\/2/CD
to/TO
49/CD
./.
The/DT
stock/NN
was/VBD
one/CD
of/IN
many/JJ
in/IN
the/DT
paper/NN
products/NNS
industry/NN
that/WDT
rose/VBD
following/VBG
Georgia-Pacific/NNP
's/POS
$/$
3.18/CD
billion/CD
bid/NN
for/IN
Great/NNP
Northern/NNP
Nekoosa/NNP
./.
A/DT
permanent/JJ
smoking/NN
ban/NN
on/IN
virtually/RB
all/DT
domestic/JJ
airline/NN
routes/NNS
won/VBD
approval/NN
from/IN
the/DT
House/NNP
,/,
which/WDT
separately/RB
sent/VBD
to/TO
President/NNP
Bush/NNP
a/DT
nearly/RB
$/$
67/CD
billion/CD
fiscal/JJ
1990/CD
bill/NN
including/VBG
the/DT
first/JJ
construction/NN
funds/NNS
for/IN
the/DT
space/NN
station/NN
./.
The/DT
smoking/NN
prohibition/NN
remains/VBZ
attached/JJ
to/TO
a/DT
$/$
27.1/CD
billion/CD
transportation/NN
bill/NN
that/WDT
must/MD
still/RB
overcome/VB
budget/NN
obstacles/NNS
in/IN
Congress/NNP
./.
But/CC
yesterday/NN
's/POS
action/NN
put/VBD
to/TO
rest/VB|NN
any/DT
lingering/VBG
resistance/NN
from/IN
tobacco/NN
interests/NNS
./.
Faced/VBN
with/IN
inevitable/JJ
defeat/NN
,/,
the/DT
once/RB
dominant/JJ
industry/NN
declined/VBD
any/DT
recorded/JJ
vote/NN
on/IN
the/DT
ban/NN
,/,
which/WDT
covers/VBZ
all/DT
but/IN
a/DT
fraction/NN
of/IN
1/CD
%/NN
of/IN
daily/JJ
flights/NNS
in/IN
the/DT
U.S/NNP
./.
The/DT
sole/JJ
exceptions/NNS
are/VBP
an/DT
estimated/JJ
30/CD
flights/NNS
of/IN
six/CD
hours/NNS
or/CC
more/RBR|JJR
beginning/VBG
or/CC
ending/VBG
in/IN
Hawaii/NNP
and/CC
Alaska/NNP
./.
Assuming/VBG
final/JJ
enactment/NN
this/DT
month/NN
,/,
the/DT
prohibition/NN
will/MD
take/VB
effect/NN
96/CD
days/NNS
later/RB
,/,
or/CC
in/IN
early/JJ
February/NNP
./.
On/IN
a/DT
394-21/JJ
roll/NN
call/NN
,/,
the/DT
House/NNP
adopted/VBD
the/DT
underlying/JJ
transportation/NN
measure/NN
./.
But/CC
the/DT
bill/NN
still/RB
faces/VBZ
budget/NN
questions/NNS
because/IN
it/PRP
also/RB
is/VBZ
the/DT
vehicle/NN
for/IN
an/DT
estimated/JJ
$/$
3.1/CD
billion/CD
in/IN
supplemental/JJ
appropriations/NNS
for/IN
law/NN
enforcement/NN
and/CC
anti-drug/JJ
programs/NNS
./.
The/DT
additional/JJ
spending/NN
pushes/VBZ
the/DT
measure/NN
more/JJR
than/IN
$/$
2/CD
billion/CD
above/IN
its/PRP$
prescribed/JJ
budget/NN
ceiling/NN
,/,
and/CC
the/DT
House/NNP
Appropriations/NNP
Committee/NNP
leadership/NN
must/MD
now/RB
seek/VB
a/DT
waiver/NN
in/IN
hopes/NNS
of/IN
completing/VBG
action/NN
today/NN
./.
The/DT
separate/JJ
$/$
67/CD
billion/CD
bill/NN
sent/VBN
to/TO
the/DT
White/NNP
House/NNP
had/VBD
budget/NN
difficulties/NNS
,/,
too/RB
,/,
but/CC
was/VBD
saved/VBN
ultimately/RB
by/IN
its/PRP$
importance/NN
to/TO
a/DT
broad/JJ
spectrum/NN
of/IN
interests/NNS
in/IN
Congress/NNP
and/CC
the/DT
administration/NN
itself/PRP
./.
No/DT
single/JJ
bill/NN
this/DT
year/NN
includes/VBZ
more/JJR
discretionary/JJ
spending/NN
for/IN
domestic/JJ
programs/NNS
and/CC
,/,
apart/RB
from/IN
the/DT
space/NN
station/NN
,/,
the/DT
measure/NN
incorporates/VBZ
far-reaching/JJ
provisions/NNS
affecting/VBG
the/DT
federal/JJ
mortgage/NN
market/NN
./.
The/DT
current/JJ
ceiling/NN
on/IN
home/NN
loans/NNS
insured/VBN
by/IN
the/DT
Federal/NNP
Housing/NNP
Administration/NNP
is/VBZ
increased/VBN
to/TO
$/$
124,875/CD
during/IN
fiscal/JJ
1990/CD
./.
And/CC
in/IN
anticipation/NN
of/IN
increased/JJ
lending/NN
,/,
the/DT
cap/NN
on/IN
FHA/NNP
loan/NN
guarantees/NNS
would/MD
rise/VB
to/TO
approximately/RB
$/$
73.8/CD
billion/CD
./.
Separately/RB
,/,
the/DT
bill/NN
gives/VBZ
authority/NN
to/TO
the/DT
Department/NNP
of/IN
Housing/NNP
and/CC
Urban/NNP
Development/NNP
to/TO
facilitate/VB
the/DT
refinancing/NN
of/IN
high-interest/JJ
loans/NNS
subsidized/VBN
by/IN
the/DT
government/NN
under/IN
the/DT
so-called/JJ
Section/NN
235/CD
home-ownership/NN
program/NN
for/IN
lower-income/JJ
families/NNS
./.
This/DT
provision/NN
met/VBD
early/JJ
and/CC
strong/JJ
resistance/NN
from/IN
investment/NN
bankers/NNS
worried/VBN
about/IN
disruptions/NNS
in/IN
their/PRP$
clients/NNS
'/POS
portfolios/NNS
./.
But/CC
the/DT
promise/NN
of/IN
at/IN
least/JJS
$/$
15/CD
million/CD
in/IN
new/JJ
savings/NNS
helped/VBD
to/TO
forge/VB
a/DT
partnership/NN
between/IN
HUD/NNP
Secretary/NNP
Jack/NNP
Kemp/NNP
and/CC
lawmakers/NNS
wanting/VBG
to/TO
protect/VB
their/PRP$
projects/NNS
elsewhere/RB
./.
The/DT
estimated/JJ
$/$
1.8/CD
billion/CD
for/IN
the/DT
space/NN
station/NN
would/MD
be/VB
double/RB
last/JJ
year/NN
's/POS
level/NN
,/,
and/CC
total/JJ
appropriations/NNS
for/IN
the/DT
National/NNP
Aeronautics/NNP
and/CC
Space/NNP
Administration/NNP
would/MD
grow/VB
16/CD
%/NN
to/TO
nearly/RB
$/$
12.4/CD
billion/CD
./.
A/DT
string/NN
of/IN
costly/JJ
projects/NNS
,/,
including/VBG
the/DT
high-speed/JJ
national/JJ
aerospace/NN
plane/NN
and/CC
the/DT
advanced/JJ
communications/NNS
technology/NN
satellite/NN
,/,
would/MD
continue/VB
to/TO
be/VB
developed/VBN
within/IN
these/DT
limits/NNS
./.
And/CC
while/IN
imposing/VBG
a/DT
statutory/JJ
cap/NN
of/IN
$/$
1.6/CD
billion/CD
on/IN
future/JJ
spending/NN
,/,
the/DT
bill/NN
would/MD
give/VB
NASA/NNP
$/$
30/CD
million/CD
for/IN
the/DT
start-up/NN
of/IN
the/DT
CRAF-Cassini/NNP
mission/NN
,/,
a/DT
successor/NN
to/TO
the/DT
Voyager/NNP
space/NN
probe/NN
./.
Separately/NNP
,/,
the/DT
National/NNP
Science/NNP
Foundation/NNP
is/VBZ
promised/VBN
a/DT
7.7/CD
%/NN
increase/NN
to/TO
bring/VB
its/PRP$
appropriations/NNS
to/TO
$/$
2.07/CD
billion/CD
./.
And/CC
while/IN
pursuing/VBG
these/DT
initiatives/NNS
,/,
Congress/NNP
and/CC
the/DT
White/NNP
House/NNP
are/VBP
squeezed/VBN
too/RB
by/IN
steady/JJ
increases/NNS
--/:
$/$
551/CD
million/CD
--/:
in/IN
veteran/NN
's/POS
medical/JJ
care/NN
./.
The/DT
result/NN
is/VBZ
that/IN
all/DT
sides/NNS
resort/VBP
to/TO
sleight/NN
of/IN
hand/NN
to/TO
make/VB
room/NN
for/IN
competing/VBG
housing/NN
and/CC
environmental/JJ
programs/NNS
,/,
and/CC
the/DT
commitments/NNS
now/RB
will/MD
drive/VB
excess/JJ
spending/NN
into/IN
fiscal/JJ
1991/CD
./.
Senior/JJ
members/NNS
of/IN
the/DT
House/NNP
Budget/NNP
Committee/NNP
are/VBP
reduced/VBN
in/IN
frustration/NN
to/TO
raising/VBG
doomed/JJ
parliamentary/JJ
obstacles/NNS
to/TO
individual/JJ
bills/NNS
,/,
yet/CC
admit/VBP
that/IN
much/JJ
of/IN
the/DT
disorder/NN
now/RB
stems/VBZ
from/IN
the/DT
fiscal/JJ
legerdemain/NN
associated/VBN
with/IN
their/PRP$
own/JJ
summit/NN
agreement/NN
with/IN
the/DT
White/NNP
House/NNP
this/DT
past/JJ
spring/NN
./.
``/``
It/PRP
's/VBZ
hard/JJ
to/TO
get/VB
the/DT
administration/NN
's/POS
attention/NN
on/IN
anything/NN
,/,
''/''
said/VBD
Rep./NNP
Bill/NNP
Frenzel/NNP
R./NNP
,/,
Minn./NNP
the/DT
whole/JJ
agreement/NN
was/VBD
built/VBN
on/IN
gimmickry/NN
./.
''/''
Among/IN
the/DT
subsidies/NNS
continued/VBN
in/IN
the/DT
transportation/NN
bill/NN
is/VBZ
$/$
30.7/CD
million/CD
to/TO
maintain/VB
commercial/JJ
air/NN
service/NN
for/IN
an/DT
estimated/JJ
92/CD
communities/NNS
,/,
often/RB
in/IN
rural/JJ
areas/NNS
./.
Senate/NNP
Appropriations/NNP
Committee/NNP
Chairman/NNP
Robert/NNP
Byrd/NNP
D./NNP
,/,
W.Va/NNP
./.
deeper/JJR
cuts/NNS
sought/VBN
by/IN
the/DT
House/NNP
./.
But/CC
at/IN
a/DT
time/NN
when/WRB
the/DT
White/NNP
House/NNP
wants/VBZ
to/TO
kill/VB
the/DT
entire/NN
program/NN
,/,
Republicans/NNPS
have/VBP
been/VBN
among/IN
its/PRP$
leading/JJ
champions/NNS
./.
Sen./NNP
Pete/NNP
Domenici/NNP
R./NNP
,/,
N.M./NNP
the/DT
ranking/JJ
Republican/NNP
on/IN
the/DT
Senate/NNP
Budget/NNP
Committee/NNP
,/,
used/VBD
his/PRP$
influence/NN
to/TO
preserve/VB
more/JJR
than/IN
$/$
132,000/CD
in/IN
subsidies/NNS
for/IN
air/NN
service/NN
to/TO
Sante/NNP
Fe/NNP
,/,
N.M./NNP
,/,
and/CC
more/JJR
than/IN
$/$
2.1/CD
million/CD
would/MD
go/VB
for/IN
service/NN
to/TO
eight/CD
communities/NNS
in/IN
the/DT
western/JJ
Nebraska/NNP
district/NN
of/IN
GOP/NNP
Rep./NNP
Virginia/NNP
Smith/NNP
on/IN
the/DT
House/NNP
Appropriations/NNP
Committee/NNP
./.
GP/NNP
Express/NNP
,/,
an/DT
independent/JJ
airline/NN
serving/VBG
much/JJ
of/IN
Nebraska/NNP
,/,
estimates/VBZ
that/IN
nearly/RB
40/CD
%/NN
of/IN
its/PRP$
revenues/NNS
come/VBP
from/IN
the/DT
subsidies/NNS
that/WDT
,/,
in/IN
some/DT
cases/NNS
,/,
exceed/VBP
the/DT
cost/NN
of/IN
a/DT
ticket/NN
./.
For/IN
example/NN
,/,
a/DT
passenger/NN
can/MD
fly/VB
from/IN
Chardon/NNP
,/,
Neb./NNP
,/,
to/TO
Denver/NNP
for/IN
as/RB
little/JJ
as/IN
$/$
89/CD
to/TO
$/$
109/CD
,/,
according/VBG
to/TO
prices/NNS
quoted/VBN
by/IN
the/DT
company/NN
./.
But/CC
given/VBN
the/DT
few/JJ
number/NN
of/IN
users/NNS
,/,
the/DT
cost/NN
to/TO
the/DT
federal/JJ
government/NN
per/IN
passenger/NN
is/VBZ
estimated/VBN
at/IN
$/$
193/CD
,/,
according/VBG
to/TO
House/NNP
and/CC
Senate/NNP
appropriations/NNS
committees/NNS
./.
The/DT
House/NNP
action/NN
yesterday/NN
came/VBD
as/IN
the/DT
Senate/NNP
remained/VBD
mired/JJ
in/IN
difficulties/NNS
over/IN
a/DT
$/$
17.25/CD
billion/CD
measure/NN
covering/VBG
the/DT
budgets/NNS
for/IN
the/DT
State/NNP
,/,
Commerce/NNP
,/,
and/CC
Justice/NNP
departments/NNS
in/IN
fiscal/JJ
1990/CD
./.
The/DT
compromise/NN
bill/NN
passed/VBD
the/DT
House/NNP
last/JJ
week/NN
but/CC
has/VBZ
now/RB
provoked/VBN
jurisdictional/JJ
fights/NNS
with/IN
the/DT
Senate/NNP
Foreign/NNP
Relations/NNP
Committee/NNP
,/,
which/WDT
jealously/RB
protects/VBZ
its/PRP$
prerogatives/NNS
over/IN
operations/NNS
at/IN
the/DT
State/NNP
Department/NNP
./.
The/DT
same/JJ
jealousy/NN
can/MD
breed/VB
confusion/NN
,/,
however/RB
,/,
in/IN
the/DT
absence/NN
of/IN
any/DT
authorization/NN
bill/NN
this/DT
year/NN
./.
House/NNP
and/CC
Senate/NNP
appropriators/NNS
sought/VBD
to/TO
establish/VB
a/DT
Nov./NNP
30/CD
deadline/NN
after/IN
which/WDT
their/PRP$
bill/NN
would/MD
become/VB
the/DT
last/JJ
word/NN
on/IN
how/WRB
funds/NNS
are/VBP
distributed/VBN
./.
But/CC
on/IN
a/DT
53-45/JJ
roll/NN
call/NN
this/DT
provision/NN
was/VBD
stripped/VBN
from/IN
the/DT
bill/NN
last/JJ
night/NN
after/IN
Foreign/NNP
Relations/NNPS
Chairman/NNP
Claiborne/NNP
Pell/NNP
D./NNP
,/,
R.I/NNP
./.
it/PRP
was/VBD
an/DT
intrusion/NN
on/IN
exclusive/JJ
powers/NNS
vested/VBN
in/IN
his/PRP$
panel/NN
for/IN
more/RBR|JJR
than/IN
three/CD
decades/NNS
./.
Coda/NNP
Energy/NNP
Inc./NNP
said/VBD
it/PRP
arranged/VBD
a/DT
$/$
50/CD
million/CD
credit/NN
facility/NN
with/IN
NCNB/NNP
Texas/NNP
National/NNP
Bank/NNP
,/,
a/DT
unit/NN
of/IN
NCNB/NNP
Corp./NNP
,/,
of/IN
Charlotte/NNP
,/,
N.C/NNP
./.
The/DT
Dallas/NNP
oil/NN
and/CC
gas/NN
concern/NN
said/VBD
that/IN
$/$
10/CD
million/CD
of/IN
the/DT
facility/NN
would/MD
be/VB
used/VBN
to/TO
consolidate/VB
the/DT
company/NN
's/POS
$/$
8.1/CD
million/CD
of/IN
existing/VBG
bank/NN
debt/NN
,/,
to/TO
repurchase/VB
4/CD
million/CD
of/IN
its/PRP$
4.9/CD
million/CD
shares/NNS
outstanding/JJ
of/IN
Series/NNP
D/NNP
convertible/JJ
preferred/JJ
stock/NN
,/,
and/CC
to/TO
purchase/VB
a/DT
10/CD
%/NN
net-profits/JJ
interest/NN
in/IN
certain/JJ
oil/NN
and/CC
gas/NN
properties/NNS
from/IN
one/CD
of/IN
its/PRP$
existing/VBG
lenders/NNS
,/,
National/NNP
Canada/NNP
Corp/NNP
./.
The/DT
remaining/VBG
$/$
40/CD
million/CD
can/MD
be/VB
used/VBN
over/IN
three/CD
years/NNS
for/IN
oil/NN
and/CC
gas/NN
acquisitions/NNS
,/,
the/DT
company/NN
said/VBD
./.
Ted/NNP
Eubank/NNP
,/,
Coda/NNP
's/POS
president/NN
,/,
said/VBD
the/DT
loan/NN
carries/VBZ
an/DT
interest/NN
rate/NN
of/IN
prime/JJ
plus/CC
one/CD
percentage/NN
point/NN
,/,
with/IN
85/CD
%/NN
of/IN
the/DT
company/NN
's/POS
net/JJ
oil/NN
and/CC
gas/NN
revenue/NN
each/DT
month/NN
dedicated/VBN
to/TO
repayment/NN
./.
The/DT
company/NN
put/VBD
up/RP
``/``
virtually/RB
all/DT
''/''
of/IN
its/PRP$
oil/NN
and/CC
gas/NN
properties/NNS
as/IN
collateral/NN
,/,
he/PRP
said/VBD
./.
General/NNP
Dynamics/NNP
Corp./NNP
was/VBD
given/VBN
an/DT
$/$
843/CD
million/CD
Air/NNP
Force/NNP
contract/NN
for/IN
F-16/NNP
aircraft/NNS
and/CC
related/JJ
equipment/NN
./.
Loral/NNP
Corp./NNP
's/POS
defense/NN
systems/NNS
division/NN
received/VBD
a/DT
$/$
54.9/CD
million/CD
Air/NNP
Force/NNP
contract/NN
for/IN
a/DT
F-15/NNP
weapons/NNS
system/NN
trainer/NN
./.
Southern/NNP
Air/NNP
Transport/NNP
Inc./NNP
won/VBD
$/$
47.5/CD
million/CD
in/IN
Air/NNP
Force/NNP
and/CC
Navy/NNP
contracts/NNS
for/IN
transportation/NN
services/NNS
./.
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
was/VBD
given/VBN
a/DT
$/$
31.2/CD
million/CD
Air/NNP
Force/NNP
contract/NN
for/IN
satellite/JJ
data/NNS
systems/NNS
equipment/NN
./.
Directed/NNP
Technologies/NNPS
received/VBD
a/DT
$/$
28.3/CD
million/CD
Defense/NNP
Advanced/NNP
Research/NNP
Projects/NNPS
Agency/NNP
contract/NN
for/IN
advanced/JJ
propulsion/NN
systems/NNS
research/NN
./.
Propper/NNP
International/NNP
Inc./NNP
got/VBD
a/DT
$/$
22.8/CD
million/CD
Defense/NNP
Logistics/NNP
Agency/NNP
contract/NN
for/IN
combat/NN
camouflage/NN
trousers/NNS
./.
Santa/NNP
Fe/NNP
Pacific/NNP
was/VBD
the/DT
kind/NN
of/IN
story/NN
Wall/NNP
Street/NNP
loved/VBD
./.
Since/IN
the/DT
value/NN
of/IN
its/PRP$
assets/NNS
was/VBD
n't/RB
known/VBN
,/,
analysts/NNS
were/VBD
free/JJ
to/TO
pick/VB
a/DT
number/NN
./.
In/IN
one/CD
of/IN
many/JJ
rosy/JJ
scenarios/NNS
,/,
Bear/NNP
Stearns/NNP
's/POS
Gary/NNP
Schneider/NNP
wrote/VBD
in/IN
March/NNP
that/IN
its/PRP$
real/JJ
estate/NN
alone/RB
had/VBD
a/DT
value/NN
of/IN
$/$
4.5/CD
billion/CD
./.
Throw/VB
in/IN
its/PRP$
railroad/NN
,/,
minerals/NNS
,/,
pipeline/NN
and/CC
oil/NN
assets/NNS
,/,
he/PRP
and/CC
others/NNS
argued/VBD
,/,
and/CC
the/DT
Chicago-based/JJ
conglomerate/NN
should/MD
be/VB
worth/IN
30/CD
a/DT
share/NN
./.
And/CC
why/WRB
should/MD
holders/NNS
expect/VB
to/TO
realize/VB
that/IN
presumed/JJ
``/``
worth/NN
?/.
''/''
That/DT
was/VBD
another/DT
reason/NN
the/DT
Street/NNP
loved/VBD
Santa/NNP
Fe/NNP
./.
With/IN
real/JJ
estate/NN
experts/NNS
Olympia/NNP
&/CC
York/NNP
and/CC
Samuel/NNP
Zell/NNP
's/POS
Itel/NNP
owning/VBG
close/RB
to/TO
40/CD
%/NN
of/IN
Santa/NNP
Fe/NNP
's/POS
stock/NN
,/,
management/NN
was/VBD
under/IN
pressure/NN
--/:
in/IN
a/DT
favored/JJ
phrase/NN
of/IN
Wall/NNP
Street/NNP
--/:
to/TO
quickly/RB
``/``
maximize/VB
values/NNS
./.
''/''
But/CC
value/NN
,/,
it/PRP
turns/VBZ
out/RP
,/,
is/VBZ
only/RB
what/WP
a/DT
buyer/NN
will/MD
pay/VB
./.
And/CC
with/IN
the/DT
company/NN
's/POS
recent/JJ
announcement/NN
that/IN
it/PRP
is/VBZ
contemplating/VBG
a/DT
partial/JJ
sale/NN
of/IN
its/PRP$
real/JJ
estate/NN
,/,
the/DT
values/NNS
suddenly/RB
look/VBP
poorer/JJR
./.
Santa/NNP
Fe/NNP
has/VBZ
disclosed/VBN
that/IN
it/PRP
is/VBZ
negotiating/VBG
to/TO
sell/VB
a/DT
20/CD
%/NN
interest/NN
in/IN
its/PRP$
real/JJ
estate/NN
unit/NN
to/TO
the/DT
California/NNP
Public/NNP
Employees/NNPS
Retirement/NNP
System/NNP
for/IN
roughly/RB
$/$
400/CD
million/CD
./.
Since/IN
the/DT
real/JJ
estate/NN
unit/NN
also/RB
includes/VBZ
debt/NN
,/,
the/DT
imputed/JJ
value/NN
of/IN
the/DT
real/JJ
estate/NN
itself/PRP
is/VBZ
close/RB
to/TO
$/$
3/CD
billion/CD
./.
``/``
The/DT
implied/JJ
current/JJ
net/JJ
asset/NN
value/NN
of/IN
22.70/CD
share/NN
the/DT
30/CD
level/NN
that/WDT
the/DT
Street/NNP
believed/VBD
,/,
''/''
PaineWebber/NNP
says/VBZ
./.
``/``
The/DT
upside/NN
was/VBD
in/IN
the/DT
intangible/JJ
real/JJ
estate/NN
.../:
which/WDT
is/VBZ
no/RB
longer/RBR
an/DT
intangible/NN
./.
''/''
So/RB
what/WP
is/VBZ
Santa/NNP
Fe/NNP
worth/IN
?/.
If/IN
the/DT
railroad/NN
is/VBZ
valued/VBN
on/IN
a/DT
private/JJ
market/NN
basis/NN
--/:
at/IN
the/DT
same/JJ
multiple/NN
of/IN
earnings/NNS
as/IN
in/IN
the/DT
recent/JJ
sale/NN
of/IN
CNW/NNP
--/:
it/PRP
would/MD
have/VB
a/DT
value/NN
of/IN
$/$
1.65/CD
billion/CD
./.
A/DT
compromise/NN
between/IN
bulls/NNS
and/CC
bears/NNS
puts/VBZ
remaining/VBG
assets/NNS
and/CC
cash/NN
--/:
including/VBG
its/PRP$
44/CD
%/NN
stake/NN
in/IN
its/PRP$
publicly/RB
traded/VBN
pipeline/NN
--/:
at/IN
$/$
2/CD
billion/CD
./.
Santa/NNP
Fe/NNP
also/RB
has/VBZ
$/$
3.7/CD
billion/CD
in/IN
debt/NN
./.
In/IN
addition/NN
,/,
its/PRP$
railroad/NN
lost/VBD
a/DT
$/$
750/CD
million/CD
antitrust/JJ
suit/NN
,/,
which/WDT
is/VBZ
on/IN
appeal/NN
,/,
and/CC
which/WDT
analysts/NNS
say/VB
could/MD
be/VB
settled/VBN
for/IN
one-third/RB
that/DT
amount/NN
./.
That/DT
nets/VBZ
out/RP
to/TO
about/RB
$/$
17/CD
a/DT
share/NN
for/IN
the/DT
company/NN
on/IN
a/DT
private/JJ
market/NN
basis/NN
./.
But/CC
Santa/NNP
Fe/NNP
,/,
currently/RB
trading/VBG
at/IN
18/CD
7\/8/CD
,/,
is/VBZ
n't/RB
likely/JJ
to/TO
realize/VB
private/JJ
market/NN
values/NNS
by/IN
selling/VBG
assets/NNS
,/,
because/IN
the/DT
tax/NN
against/IN
it/PRP
would/MD
be/VB
onerous/JJ
./.
Its/PRP$
plan/NN
,/,
instead/RB
,/,
is/VBZ
to/TO
spin/VB
off/RP
the/DT
remainder/NN
of/IN
its/PRP$
real/JJ
estate/NN
unit/NN
and/CC
to/TO
possibly/RB
do/VB
the/DT
same/JJ
with/IN
its/PRP$
mining/NN
and/CC
energy/NN
assets/NNS
./.
Robert/NNP
D./NNP
Krebs/NNP
,/,
Santa/NNP
Fe/NNP
's/POS
chairman/NN
,/,
argues/VBZ
that/IN
since/IN
its/PRP$
businesses/NNS
are/VBP
valued/VBN
in/IN
different/JJ
ways/NNS
,/,
``/``
the/DT
sum/NN
of/IN
the/DT
parts/NNS
may/MD
be/VB
greater/JJR
than/IN
the/DT
whole/NN
./.
''/''
But/CC
it/PRP
is/VBZ
n't/RB
clear/JJ
why/WRB
that/DT
should/MD
be/VB
so/RB
./.
The/DT
spinoff/NN
argument/NN
,/,
after/IN
all/DT
,/,
reverses/VBZ
the/DT
current/JJ
notion/NN
that/IN
assets/NNS
are/VBP
worth/IN
more/JJR
to/TO
private/JJ
buyers/NNS
than/IN
to/TO
public/JJ
shareholders/NNS
./.
And/CC
real/JJ
estate/NN
usually/RB
has/VBZ
n't/RB
traded/VBN
well/RB
under/IN
public/JJ
ownership/NN
./.
Salomon/NNP
Brothers/NNP
says/VBZ
,/,
``/``
We/PRP
believe/VBP
the/DT
real/JJ
estate/NN
properties/NNS
would/MD
trade/VB
at/IN
a/DT
discount/NN
.../:
after/IN
the/DT
realty/NN
unit/NN
is/VBZ
spun/VBN
off/RP
.../:
./.
And/CC
what/WP
about/IN
the/DT
cost/NN
,/,
and/CC
risk/NN
,/,
of/IN
waiting/VBG
to/TO
realize/VB
the/DT
hypothetical/JJ
private/JJ
market/NN
values/NNS
?/.
''/''
Some/DT
analysts/NNS
remain/VBP
bullish/JJ
./.
Mr./NNP
Schneider/NNP
of/IN
Bear/NNP
Stearns/NNP
says/VBZ
he/PRP
is/VBZ
recalculating/VBG
the/DT
worth/NN
of/IN
the/DT
company/NN
's/POS
assets/NNS
and/CC
,/,
in/IN
the/DT
meantime/NN
,/,
is/VBZ
sticking/VBG
to/TO
his/PRP$
``/``
buy/VB
''/''
recommendation/NN
on/IN
the/DT
belief/NN
that/IN
he/PRP
will/MD
find/VB
``/``
values/NNS
''/''
of/IN
30/CD
a/DT
share/NN
./.
He/PRP
adds/VBZ
:/:
``/``
If/IN
for/IN
any/DT
reason/NN
I/PRP
do/VBP
n't/RB
have/VB
the/DT
values/NNS
,/,
then/RB
I/PRP
wo/MD
n't/RB
recommend/VB
it/PRP
./.
''/''
First/RB
Boston/NNP
's/POS
Graeme/NNP
Anne/NNP
Lidgerwood/NNP
values/VBZ
Santa/NNP
Fe/NNP
at/IN
24/CD
,/,
down/RB
from/IN
her/PRP$
earlier/JJR
estimate/NN
of/IN
29/CD
./.
Her/PRP$
recent/JJ
report/NN
classifies/VBZ
the/DT
stock/NN
as/IN
a/DT
``/``
hold/VB|NN
./.
''/''
But/CC
it/PRP
appears/VBZ
to/TO
be/VB
the/DT
sort/NN
of/IN
hold/NN
one/CD
makes/VBZ
while/IN
heading/VBG
for/IN
the/DT
door/NN
./.
Quoting/VBG
from/IN
the/DT
report/NN
:/:
``/``
The/DT
stock/NN
's/POS
narrow/JJ
discount/NN
to/TO
asset/NN
valuation/NN
makes/VBZ
it/PRP
a/DT
relatively/RB
unappealing/JJ
investment/NN
at/IN
current/JJ
prices/NNS
,/,
especially/RB
given/VBN
the/DT
risk/NN
that/IN
our/PRP$
projections/NNS
could/MD
be/VB
on/IN
the/DT
aggressive/JJ
side/NN
./.
''/''
Chairman/NNP
Krebs/NNP
says/VBZ
the/DT
California/NNP
pension/NN
fund/NN
is/VBZ
getting/VBG
a/DT
bargain/NN
price/NN
that/WDT
would/MD
n't/RB
have/VB
been/VBN
offered/VBN
to/TO
others/NNS
./.
In/IN
other/JJ
words/NNS
:/:
The/DT
real/JJ
estate/NN
has/VBZ
a/DT
higher/JJR
value/NN
than/IN
the/DT
pending/JJ
deal/NN
suggests/VBZ
./.
Since/IN
most/JJS
of/IN
the/DT
unit/NN
's/POS
real/JJ
estate/NN
is/VBZ
in/IN
California/NNP
,/,
the/DT
pension/NN
fund/NN
will/MD
be/VB
a/DT
useful/JJ
political/JJ
ally/NN
in/IN
a/DT
state/NN
where/WRB
development/NN
is/VBZ
often/RB
held/VBN
hostage/NN
to/TO
zoning/NN
boards/NNS
./.
And/CC
,/,
as/IN
Mr./NNP
Zell/NNP
says/VBZ
,/,
with/IN
Itel/NNP
and/CC
O&Y/NNP
on/IN
the/DT
unit/NN
's/POS
board/NN
,/,
the/DT
real/JJ
estate/NN
will/MD
be/VB
run/VBN
by/IN
``/``
a/DT
very/RB
unusual/JJ
group/NN
''/''
to/TO
say/VB
the/DT
least/JJS
./.
It/PRP
is/VBZ
possible/JJ
then/RB
that/IN
Santa/NNP
Fe/NNP
's/POS
real/JJ
estate/NN
--/:
even/RB
in/IN
a/DT
state/NN
imperiled/VBN
by/IN
earthquakes/NNS
--/:
could/MD
,/,
one/CD
day/NN
,/,
fetch/VB
a/DT
king/NN
's/POS
ransom/NN
./.
But/CC
as/IN
Drexel/NNP
analyst/NN
Linda/NNP
Dunn/NNP
notes/VBZ
,/,
its/PRP$
properties/NNS
will/MD
be/VB
developed/VBN
over/IN
15/CD
to/TO
20/CD
years/NNS
./.
So/RB
despite/IN
Wall/NNP
Street/NNP
's/POS
rosy/JJ
talk/NN
of/IN
quickly/RB
``/``
maximizing/VBG
values/NNS
,/,
''/''
holders/NNS
could/MD
be/VB
in/IN
for/IN
a/DT
long/JJ
wait/NN
./.
Santa/NNP
Fe/NNP
Pacific/NNP
NYSE/NNP
;/:
Symbol/NN
:/:
SFX/NNP
Business/NN
:/:
Railroad/NN
,/,
natural/JJ
resources/NNS
and/CC
real/JJ
estate/NN
Year/NN
ended/VBN
Dec./NNP
31/CD
,/,
1988/CD
:/:
Revenue/NN
:/:
$/$
3.14/CD
billion/CD
Net/JJ
loss/NN
:/:
$/$
46.5/CD
million/CD
;/:
30/CD
cents/NNS
a/DT
share/NN
Third/JJ
quarter/NN
,/,
Sept./NNP
30/CD
,/,
1989/CD
:/:
Net/JJ
income/NN
:/:
21/CD
cents/NNS
a/DT
share/NN
vs./FW
net/JJ
loss/NN
of/IN
$/$
4.11/CD
a/DT
share/NN
Average/JJ
daily/JJ
trading/NN
volume/NN
:/:
344,354/CD
shares/NNS
Common/JJ
shares/NNS
outstanding/JJ
:/:
157.4/CD
million/CD
Orkem/NNP
S.A./NNP
,/,
a/DT
French/JJ
state-controlled/JJ
chemical/JJ
manufacturer/NN
,/,
is/VBZ
making/VBG
a/DT
friendly/JJ
bid/NN
of/IN
470/CD
pence/NNS
$/$
7.43/CD
a/DT
share/NN
for/IN
the/DT
59.2/CD
%/NN
of/IN
U.K./NNP
specialty/NN
chemical/JJ
group/NN
Coates/NNP
Brothers/NNP
PLC/NNP
which/WDT
it/PRP
does/VBZ
n't/RB
already/RB
own/VB
,/,
the/DT
two/CD
sides/NNS
said/VBD
./.
The/DT
offer/NN
,/,
which/WDT
values/VBZ
the/DT
whole/NN
of/IN
Coates/NNP
at/IN
#/#
301/CD
million/CD
,/,
has/VBZ
already/RB
been/VBN
accepted/VBN
by/IN
Coates/NNP
executives/NNS
and/CC
other/JJ
shareholders/NNS
owning/VBG
12.4/CD
%/NN
of/IN
the/DT
company/NN
./.
The/DT
acceptances/NNS
give/VBP
Orkem/VB
a/DT
controlling/JJ
53.2/CD
%/NN
stake/NN
in/IN
the/DT
company/NN
./.
Orkem/NNP
and/CC
Coates/NNP
said/VBD
last/JJ
Wednesday/NNP
that/IN
the/DT
two/CD
were/VBD
considering/VBG
a/DT
merger/NN
,/,
through/IN
Orkem/NNP
's/POS
British/JJ
subsidiary/NN
,/,
Orkem/NNP
Coatings/NNP
U.K./NNP
Ltd/NNP
./.
Orkem/NNP
,/,
France/NNP
's/POS
third-largest/JJ
chemical/JJ
group/NN
,/,
said/VBD
it/PRP
would/MD
fund/VB
the/DT
acquisition/NN
through/IN
internal/JJ
resources/NNS
./.
The/DT
takeover/NN
would/MD
be/VB
followed/VBN
by/IN
a/DT
restructuring/NN
of/IN
Orkem/NNP
's/POS
U.K./NNP
unit/NN
,/,
including/VBG
the/DT
addition/NN
of/IN
related/JJ
Orkem/NNP
businesses/NNS
and/CC
possibly/RB
further/JJ
acquisitions/NNS
./.
Orkem/NNP
said/VBD
it/PRP
eventually/RB
would/MD
seek/VB
to/TO
make/VB
a/DT
public/JJ
share/NN
offering/NN
in/IN
its/PRP$
U.K./NNP
business/NN
./.
Intelogic/NNP
Trace/NNP
Inc./NNP
said/VBD
it/PRP
is/VBZ
exploring/VBG
alternatives/NNS
to/TO
maximize/VB
shareholder/NN
value/NN
,/,
including/VBG
the/DT
possible/JJ
sale/NN
of/IN
the/DT
company/NN
./.
But/CC
Asher/NNP
B./NNP
Edelman/NNP
,/,
who/WP
controls/VBZ
about/RB
16/CD
%/NN
of/IN
the/DT
San/NNP
Antonio/NNP
,/,
Texas/NNP
,/,
computer-servicing/JJ
company/NN
,/,
insisted/VBD
that/IN
the/DT
announcement/NN
did/VBD
n't/RB
have/VB
anything/NN
to/TO
do/VB
with/IN
the/DT
ongoing/JJ
battle/NN
for/IN
control/NN
of/IN
Datapoint/NNP
Corp/NNP
./.
Any/DT
sale/NN
of/IN
Intelogic/NNP
could/MD
have/VB
an/DT
impact/NN
on/IN
the/DT
battle/NN
between/IN
Mr./NNP
Edelman/NNP
and/CC
New/NNP
York/NNP
attorney/NN
Martin/NNP
Ackerman/NNP
for/IN
control/NN
of/IN
Datapoint/NNP
./.
Intelogic/NNP
holds/VBZ
27.5/CD
%/NN
of/IN
Datapoint/NNP
's/POS
common/JJ
shares/NNS
outstanding/JJ
./.
Mr./NNP
Edelman/NNP
said/VBD
the/DT
decision/NN
``/``
has/VBZ
nothing/NN
to/TO
do/VB
with/IN
Marty/NNP
Ackerman/NNP
./.
''/''
Mr./NNP
Ackerman/NNP
contended/VBD
that/IN
it/PRP
was/VBD
a/DT
direct/JJ
response/NN
to/TO
his/PRP$
efforts/NNS
to/TO
gain/VB
control/NN
of/IN
Datapoint/NNP
./.
Intelogic/NNP
was/VBD
spun/VBN
off/RP
from/IN
Datapoint/NNP
four/CD
years/NNS
ago/RB
,/,
shortly/RB
after/IN
Mr./NNP
Edelman/NNP
took/VBD
control/NN
of/IN
Datapoint/NNP
./.
Marks/NNP
&/CC
Spencer/NNP
PLC/NNP
reported/VBD
a/DT
12/CD
%/NN
gain/NN
in/IN
first-half/JJ
pretax/JJ
profit/NN
,/,
mainly/RB
because/IN
of/IN
improving/VBG
performances/NNS
in/IN
the/DT
U.K./NN
and/CC
continental/JJ
Europe/NNP
./.
In/IN
the/DT
six/CD
months/NNS
ended/VBD
Sept./NNP
30/CD
,/,
pretax/JJ
profit/NN
at/IN
the/DT
British/JJ
clothing/NN
and/CC
food/NN
retailer/NN
rose/VBD
to/TO
#/#
208.7/CD
million/CD
$/$
330.1/CD
million/CD
#/#
185.5/CD
million/CD
a/DT
year/NN
ago/RB
./.
The/DT
results/NNS
surpassed/VBD
analysts/NNS
'/POS
forecasts/NNS
,/,
which/WDT
averaged/VBD
around/RB
#/#
200/CD
million/CD
,/,
and/CC
Marks/NNP
&/CC
Spencer/NNP
responded/VBD
in/IN
trading/NN
on/IN
London/NNP
's/POS
Stock/NNP
Exchange/NNP
with/IN
an/DT
eight/CD
pence/NNS
rise/NN
to/TO
188/CD
pence/NNS
./.
Profit/NN
after/IN
tax/NN
and/CC
minority/NN
interest/NN
but/CC
before/IN
extraordinary/JJ
items/NNS
rose/VBD
12/CD
%/NN
to/TO
#/#
135.2/CD
million/CD
;/:
per-share/JJ
earnings/NNS
rose/VBD
to/TO
five/CD
pence/NNS
from/IN
4.5/CD
pence/NNS
./.
Marks/NNS
declared/VBD
an/DT
interim/JJ
per-share/JJ
dividend/NN
of/IN
1.85/CD
pence/NNS
,/,
compared/VBN
with/IN
1.7/CD
pence/NNS
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
increased/VBD
11/CD
%/NN
to/TO
#/#
2.5/CD
billion/CD
from/IN
#/#
2.25/CD
billion/CD
,/,
while/IN
operating/NN
profit/NN
climbed/VBD
13/CD
%/NN
to/TO
#/#
225.7/CD
million/CD
from/IN
#/#
199.8/CD
million/CD
./.
Sales/NNS
in/IN
North/NNP
America/NNP
and/CC
the/DT
Far/NNP
East/NNP
were/VBD
inflated/VBN
by/IN
acquisitions/NNS
,/,
rising/VBG
62/CD
%/NN
to/TO
#/#
278/CD
million/CD
./.
Operating/NN
profit/NN
dropped/VBD
35/CD
%/NN
,/,
however/RB
,/,
to/TO
#/#
3.8/CD
million/CD
./.
Brooks/NNP
Brothers/NNP
,/,
which/WDT
Marks/NNP
bought/VBD
last/JJ
year/NN
,/,
saw/VBD
operating/NN
profit/NN
drop/NN
in/IN
half/NN
to/TO
#/#
5/CD
million/CD
./.
Federal/JJ
and/CC
state/NN
thrift/NN
examiners/NNS
said/VBD
they/PRP
saw/VBD
evidence/NN
of/IN
criminal/JJ
wrongdoing/NN
in/IN
the/DT
collapse/NN
of/IN
Lincoln/NNP
Savings/NNP
&/CC
Loan/NNP
Association/NNP
,/,
and/CC
a/DT
California/NNP
regulator/NN
described/VBD
an/DT
attempted/JJ
``/``
whitewash/NN
''/''
by/IN
deputies/NNS
of/IN
chief/JJ
federal/JJ
regulator/NN
Danny/NNP
Wall/NNP
./.
In/IN
a/DT
riveting/JJ
day/NN
of/IN
hearings/NNS
before/IN
the/DT
House/NNP
Banking/NNP
Committee/NNP
,/,
the/DT
examiners/NNS
described/VBD
finding/VBG
shredded/JJ
documents/NNS
,/,
a/DT
mysterious/JJ
Panamanian/JJ
subsidiary/NN
,/,
millions/NNS
of/IN
dollars/NNS
funneled/VBN
into/IN
a/DT
Swiss/JJ
bank/NN
,/,
and/CC
a/DT
complacent/JJ
attitude/NN
by/IN
Mr./NNP
Wall/NNP
's/POS
deputies/NNS
,/,
one/CD
of/IN
whom/WP
was/VBD
portrayed/VBN
as/IN
acting/VBG
more/RBR
like/IN
a/DT
public-relations/NN
man/NN
for/IN
the/DT
thrift/NN
than/IN
a/DT
federal/JJ
regulator/NN
./.
A/DT
California/NNP
official/NN
also/RB
said/VBD
he/PRP
sent/VBD
the/DT
Federal/NNP
Bureau/NNP
of/IN
Investigation/NNP
a/DT
packet/NN
of/IN
documents/NNS
relating/VBG
to/TO
a/DT
previously/RB
reported/VBN
$/$
400,000/CD
contribution/NN
from/IN
Lincoln/NNP
's/POS
parent/NN
solicited/VBN
by/IN
Sen./NNP
Alan/NNP
Cranston/NNP
D./NNP
,/,
Calif/NNP
./.
Federal/JJ
examiner/NN
Alex/NNP
Barabolak/NNP
said/VBD
Lincoln/NNP
's/POS
operations/NNS
amounted/VBD
to/TO
``/``
pyramiding/VBG
debt/NN
to/TO
provide/VB
a/DT
luxurious/JJ
life/NN
style/NN
for/IN
its/PRP$
owners/NNS
./.
''/''
Another/DT
federal/JJ
examiner/NN
,/,
John/NNP
Meek/NNP
,/,
said/VBD
Lincoln/NNP
's/POS
principal/JJ
owner/NN
,/,
Charles/NNP
Keating/NNP
Jr./NNP
,/,
and/CC
his/PRP$
family/NN
drew/VBD
off/RP
at/IN
least/JJS
$/$
34/CD
million/CD
from/IN
the/DT
thrift/NN
in/IN
salaries/NNS
,/,
bonuses/NNS
and/CC
proceeds/NNS
from/IN
securities/NNS
sales/NNS
in/IN
the/DT
3/CD
1\/2/CD
years/NNS
before/IN
federal/JJ
authorities/NNS
seized/VBD
it/PRP
earlier/RBR
this/DT
year/NN
./.
Lincoln/NNP
's/POS
collapse/NN
may/MD
cost/VB
taxpayers/NNS
as/RB
much/JJ
as/IN
$/$
2.5/CD
billion/CD
,/,
according/VBG
to/TO
estimates/NNS
,/,
making/VBG
it/PRP
the/DT
most/RBS
expensive/JJ
thrift/NN
failure/NN
in/IN
history/NN
./.
``/``
I/PRP
think/VBP
there/EX
's/POS
overwhelming/JJ
evidence/NN
to/TO
indicate/VB
probable/JJ
criminal/JJ
activity/NN
,/,
''/''
said/VBD
Mr./NNP
Meek/NNP
,/,
who/WP
participated/VBD
last/JJ
year/NN
in/IN
an/DT
examination/NN
of/IN
the/DT
Irvine/NNP
,/,
Calif./NNP
,/,
thrift/NN
./.
He/PRP
said/VBD
the/DT
evidence/NN
pointed/VBD
to/TO
wrongdoing/NN
by/IN
Mr./NNP
Keating/NNP
``/``
and/CC
others/NNS
,/,
''/''
although/IN
he/PRP
did/VBD
n't/RB
allege/VB
any/DT
specific/JJ
violation/NN
./.
Richard/NNP
Newsom/NNP
,/,
a/DT
California/NNP
state/NN
official/NN
who/WP
last/JJ
year/NN
examined/VBD
Lincoln/NNP
's/POS
parent/NN
,/,
American/NNP
Continental/NNP
Corp./NNP
,/,
said/VBD
he/PRP
also/RB
saw/VBD
evidence/NN
that/IN
crimes/NNS
had/VBD
been/VBN
committed/VBN
./.
``/``
It/PRP
sure/RB
smells/VBZ
like/IN
it/PRP
,/,
''/''
he/PRP
said/VBD
./.
He/PRP
said/VBD
30/CD
%/NN
of/IN
the/DT
loans/NNS
he/PRP
sampled/VBN
were/VBD
``/``
dead/JJ
meat/NN
on/IN
the/DT
day/NN
they/PRP
were/VBD
made/VBN
./.
''/''
The/DT
state/NN
examiner/NN
also/RB
said/VBD
supervisors/NNS
of/IN
a/DT
parallel/JJ
federal/JJ
examination/NN
seemed/VBD
so/RB
reluctant/JJ
to/TO
demand/VB
write-downs/NNS
of/IN
Lincoln/NNP
's/POS
bad/JJ
loans/NNS
that/IN
he/PRP
immediately/RB
grew/VBD
suspicious/JJ
./.
``/``
Later/RB
on/RB
,/,
my/PRP$
concerns/NNS
about/IN
a/DT
whitewash/NN
became/VBD
even/RB
more/RBR
serious/JJ
,/,
''/''
he/PRP
said/VBD
./.
He/PRP
called/VBD
the/DT
sour/JJ
loans/NNS
``/``
appalling/JJ
''/''
and/CC
added/VBD
,/,
``/``
You/PRP
opened/VBD
the/DT
file/NN
up/RP
and/CC
it/PRP
just/RB
jumped/VBD
at/IN
you/PRP
./.
''/''
Leonard/NNP
Bickwit/NNP
,/,
a/DT
Washington/NNP
attorney/NN
for/IN
Lincoln/NN
's/POS
parent/NN
corporation/NN
,/,
said/VBD
in/IN
an/DT
interview/NN
,/,
``/``
We/PRP
deny/VBP
any/DT
criminal/JJ
behavior/NN
by/IN
the/DT
association/NN
or/CC
its/PRP$
officers/NNS
./.
''/''
``/``
Those/DT
who/WP
testified/VBD
{/(
yesterday/NN
}/)
have/VB
consistently/RB
maintained/VBN
that/IN
anyone/NN
who/WP
did/VBD
n't/RB
agree/VB
with/IN
them/PRP
is/VBZ
part/NN
of/IN
a/DT
coverup/NN
,/,
a/DT
whitewash/NN
,/,
or/CC
the/DT
subject/NN
of/IN
excessive/JJ
influence/NN
,/,
''/''
Mr./NNP
Bickwit/NNP
said/VBD
./.
``/``
We/PRP
simply/RB
do/VBP
n't/RB
agree/VB
with/IN
that/DT
or/CC
the/DT
findings/NNS
of/IN
their/PRP$
investigation/NN
./.
''/''
Mr./NNP
Wall/NNP
's/POS
deputies/NNS
complained/VBD
that/IN
they/PRP
had/VBD
n't/RB
been/VBN
given/VBN
an/DT
opportunity/NN
to/TO
respond/VB
to/TO
the/DT
criticism/NN
brought/VBD
out/RP
during/IN
the/DT
Banking/NNP
Committee/NNP
's/POS
hearings/NNS
,/,
which/WDT
Committee/NNP
Chairman/NNP
Henry/NNP
Gonzalez/NNP
D./NNP
,/,
Texas/NNP
a/DT
forum/NN
to/TO
flay/VB
Mr./NNP
Wall/NNP
's/POS
handling/NN
of/IN
the/DT
affair/NN
and/CC
to/TO
demand/VB
that/IN
he/PRP
step/VB
aside/RB
from/IN
his/PRP$
job/NN
./.
``/``
A/DT
couple/NN
of/IN
things/NNS
Mr./NNP
Newsom/NNP
said/VBD
were/VBD
at/IN
least/JJS
misleading/JJ
,/,
''/''
said/VBD
Kevin/NNP
O'Connell/NNP
,/,
one/CD
of/IN
the/DT
Washington/NNP
regulators/VBZ
responsible/JJ
for/IN
the/DT
handling/NN
of/IN
Lincoln/NNP
./.
In/IN
an/DT
interview/NN
,/,
he/PRP
said/VBD
federal/JJ
regulators/NNS
eventually/RB
declared/VBD
one/CD
of/IN
the/DT
loans/NNS
the/DT
state/NN
regulator/NN
cited/VBD
to/TO
be/VB
a/DT
total/JJ
loss/NN
,/,
and/CC
forced/VBD
Lincoln/NNP
to/TO
make/VB
an/DT
$/$
18/CD
million/CD
downward/JJ
adjustment/NN
on/IN
another/DT
./.
``/``
Our/PRP$
response/NN
to/TO
the/DT
whitewash/NN
would/MD
simply/RB
be/VB
,/,
look/VB
what/WP
happened/VBD
,/,
''/''
another/DT
Washington/NNP
official/NN
,/,
Alvin/NNP
Smuzynski/NNP
,/,
said/VBD
in/IN
an/DT
interview/NN
./.
Federal/JJ
officials/NNS
seized/VBD
the/DT
association/NN
in/IN
April/NNP
,/,
a/DT
day/NN
after/IN
the/DT
parent/NN
corporation/NN
entered/VBD
bankruptcy-law/NN
proceedings/NNS
./.
The/DT
government/NN
later/RB
brought/VBD
a/DT
$/$
1.1/CD
billion/CD
fraud/NN
suit/NN
against/IN
Mr./NNP
Keating/NNP
and/CC
others/NNS
./.
Rep./NNP
Gonzalez/NNP
has/VBZ
complained/VBN
that/IN
regulators/NNS
waited/VBD
far/RB
too/RB
long/RB
,/,
however/RB
,/,
ignoring/VBG
a/DT
recommendation/NN
from/IN
regional/JJ
officials/NNS
to/TO
place/VB
Lincoln/NNP
into/IN
receivership/NN
two/CD
years/NNS
before/IN
it/PRP
failed/VBD
./.
``/``
He/PRP
took/VBD
the/DT
reckless/JJ
course/NN
of/IN
ignoring/VBG
the/DT
evidence/NN
,/,
''/''
Rep./NNP
Gonzalez/NNP
said/VBD
./.
State/NN
thrift/NN
examiner/NN
Eugene/NNP
Stelzer/NNP
said/VBD
he/PRP
found/VBD
the/DT
chief/JJ
federal/JJ
examiner/NN
Steve/NNP
Scott/NNP
to/TO
be/VB
totally/RB
uninterested/JJ
in/IN
one/CD
allegedly/RB
fraudulent/JJ
series/NN
of/IN
transactions/NNS
./.
``/``
Frankly/RB
,/,
it/PRP
was/VBD
like/IN
he/PRP
worked/VBD
for/IN
the/DT
Lincoln/NNP
public-relations/NN
department/NN
,/,
''/''
Mr./NNP
Stelzer/NNP
testified/VBD
./.
And/CC
David/NNP
Riley/NNP
,/,
a/DT
federal/JJ
examiner/NN
who/WP
worked/VBD
under/IN
Mr./NNP
Scott/NNP
,/,
said/VBD
he/PRP
found/VBD
his/PRP$
chief/NN
oddly/RB
upbeat/JJ
about/IN
Lincoln/NNP
./.
Asked/VBN
to/TO
comment/VB
,/,
a/DT
spokesman/NN
for/IN
Mr./NNP
Scott/NNP
said/VBD
:/:
``/``
Mr./NNP
Scott/NNP
has/VBZ
spoken/VBN
to/TO
his/PRP$
attorney/NN
,/,
who/WP
has/VBZ
advised/VBN
him/PRP
not/RB
to/TO
talk/VB
to/TO
anybody/NN
./.
''/''
Mr./NNP
Meek/NNP
said/VBD
that/IN
a/DT
day/NN
or/CC
two/CD
before/IN
Lincoln/NN
's/POS
parent/NN
entered/VBD
bankruptcy/NN
proceedings/NNS
,/,
he/PRP
and/CC
other/JJ
examiners/NNS
saw/VBD
``/``
a/DT
truck/NN
with/IN
a/DT
sign/NN
on/IN
it/PRP
that/WDT
said/VBD
it/PRP
was/VBD
from/IN
the/DT
`/``
Document/NNP
Destruction/NNP
Center/NNP
./.
'/''
We/PRP
observed/VBD
at/IN
least/JJS
two/CD
large/JJ
plastic/NN
bags/NNS
of/IN
shredded/JJ
paper/NN
loaded/VBN
into/IN
this/DT
truck/NN
./.
''/''
Mr./NNP
Bickwit/NNP
said/VBD
the/DT
paper/NN
had/VBD
been/VBN
donated/VBN
to/TO
``/``
a/DT
charitable/JJ
organization/NN
that/WDT
sells/VBZ
it/PRP
for/IN
recycling/VBG
./.
They/PRP
shredded/VBD
it/PRP
simply/RB
because/IN
it/PRP
contained/VBD
financial/JJ
information/NN
about/IN
their/PRP$
creditors/NNS
and/CC
depositors/NNS
./.
''/''
Mr./NNP
Meek/NNP
said/VBD
his/PRP$
suspicions/NNS
were/VBD
aroused/VBN
by/IN
several/JJ
foreign/JJ
investments/NNS
by/IN
Lincoln/NNP
,/,
including/VBG
$/$
22/CD
million/CD
paid/VBN
to/TO
Credit/NNP
Suisse/NNP
of/IN
Switzerland/NNP
,/,
an/DT
$/$
18/CD
million/CD
interest/NN
in/IN
Saudi/NNP
European/NNP
Bank/NNP
in/IN
Paris/NNP
,/,
a/DT
$/$
17.5/CD
million/CD
investment/NN
in/IN
a/DT
Bahamas/NNPS
trading/NN
company/NN
,/,
and/CC
a/DT
recently/RB
discovered/VBN
holding/NN
in/IN
a/DT
Panama-based/JJ
company/NN
,/,
Southbrook/NNP
Holdings/NNPS
./.
Mr./NNP
Bickwit/NNP
said/VBD
,/,
``/``
I/PRP
can/MD
see/VB
why/WRB
an/DT
S&L/NN
examiner/NN
would/MD
regard/VB
these/DT
as/IN
unusual/JJ
activities/NNS
,/,
''/''
but/CC
said/VBD
the/DT
overseas/JJ
investments/NNS
``/``
essentially/RB
broke/VBD
even/RB
''/''
for/IN
the/DT
S&L/NN
./.
LTV/NNP
Steel/NNP
Co./NNP
is/VBZ
boosting/VBG
the/DT
prices/NNS
of/IN
flat/JJ
rolled/VBN
steel/NN
products/NNS
by/IN
an/DT
average/NN
of/IN
3/CD
%/NN
following/VBG
a/DT
recent/JJ
erosion/NN
in/IN
the/DT
prices/NNS
of/IN
such/JJ
crucial/JJ
steel/NN
products/NNS
./.
The/DT
big/JJ
questions/NNS
are/VBP
whether/IN
the/DT
increase/NN
,/,
effective/JJ
Jan./NNP
1/CD
,/,
1990/CD
,/,
will/MD
stick/VB
,/,
and/CC
whether/IN
other/JJ
major/JJ
steelmakers/NNS
will/MD
follow/VB
suit/NN
./.
It/PRP
is/VBZ
widely/RB
expected/VBN
that/IN
they/PRP
will/MD
./.
The/DT
increase/NN
is/VBZ
on/IN
the/DT
base/JJ
price/NN
,/,
which/WDT
is/VBZ
already/RB
being/VBG
discounted/VBN
by/IN
virtually/RB
all/DT
steel/NN
producers/NNS
./.
But/CC
LTV/NNP
's/POS
move/NN
marks/VBZ
the/DT
first/JJ
effort/NN
by/IN
a/DT
major/JJ
steelmaker/NN
to/TO
counter/VB
the/DT
free/JJ
fall/NN
in/IN
spot/NN
prices/NNS
./.
Major/JJ
steel/NN
producers/NNS
are/VBP
selling/VBG
cold/JJ
rolled/VBN
sheet/NN
steel/NN
at/IN
about/RB
$/$
370/CD
a/DT
ton/NN
,/,
compared/VBN
with/IN
a/DT
peak/JJ
price/NN
of/IN
$/$
520/CD
a/DT
ton/NN
in/IN
1988/CD
./.
Second-tier/JJ
companies/NNS
are/VBP
receiving/VBG
even/RB
less/JJR
per/IN
ton/NN
./.
LTV/NNP
's/POS
planned/JJ
increase/NN
,/,
which/WDT
was/VBD
announced/VBN
in/IN
an/DT
Oct./NNP
26/CD
memo/NN
to/TO
district/NN
managers/NNS
,/,
does/VBZ
n't/RB
affect/VB
electrogalvanized/JJ
steel/NN
or/CC
tin/NN
plate/NN
./.
LTV/NNP
confirmed/VBD
the/DT
price-increase/NN
plan/NN
,/,
saying/VBG
the/DT
move/NN
is/VBZ
designed/VBN
to/TO
more/RBR
accurately/RB
reflect/VB
the/DT
value/NN
of/IN
products/NNS
and/CC
to/TO
put/VB
steel/NN
on/IN
more/RBR
equal/JJ
footing/NN
with/IN
other/JJ
commodities/NNS
./.
A/DT
spokesman/NN
for/IN
LTV/NNP
Steel/NNP
,/,
which/WDT
is/VBZ
a/DT
unit/NN
of/IN
Dallas-based/JJ
LTV/NNP
Corp./NNP
,/,
noted/VBD
that/IN
steel/NN
prices/NNS
,/,
adjusted/VBN
for/IN
inflation/NN
,/,
increased/VBD
only/RB
1.7/CD
%/NN
between/IN
1981/CD
and/CC
the/DT
fourth/JJ
quarter/NN
of/IN
1988/CD
,/,
while/IN
the/DT
prices/NNS
of/IN
other/JJ
industrial/JJ
commodities/NNS
increased/VBD
nearly/RB
five/CD
times/NNS
as/RB
much/JJ
./.
At/IN
the/DT
same/JJ
time/NN
,/,
steelmakers/NNS
are/VBP
trying/VBG
to/TO
invest/VB
more/JJR
to/TO
modernize/VB
technology/NN
and/CC
make/VB
themselves/PRP
more/RBR
competitive/JJ
./.
But/CC
analysts/NNS
say/VBP
the/DT
company/NN
is/VBZ
also/RB
trying/VBG
to/TO
prevent/VB
further/JJ
price/NN
drops/NNS
./.
Moreover/RB
,/,
they/PRP
note/VBP
that/IN
LTV/NNP
may/MD
be/VB
trying/VBG
to/TO
send/VB
a/DT
signal/NN
to/TO
major/JJ
customers/NNS
,/,
such/JJ
as/IN
Chrysler/NNP
Corp./NNP
and/CC
Whirlpool/NNP
Corp./NNP
,/,
that/IN
steelmakers/NNS
need/VBP
more/JJR
money/NN
./.
Both/DT
companies/NNS
are/VBP
in/IN
the/DT
process/NN
of/IN
negotiating/VBG
contracts/NNS
with/IN
LTV/NNP
and/CC
others/NNS
./.
``/``
They/PRP
LTV/NNP
this/DT
can/MD
impact/VB
contract/NN
negotiations/NNS
and/CC
is/VBZ
their/PRP$
signal/NN
to/TO
the/DT
world/NN
that/WDT
now/RB
is/VBZ
the/DT
time/NN
to/TO
get/VB
tough/JJ
on/IN
prices/NNS
,/,
''/''
said/VBD
Peter/NNP
Marcus/NNP
,/,
an/DT
analyst/NN
with/IN
PaineWebber/NNP
Inc/NNP
./.
Mr./NNP
Marcus/NNP
believes/VBZ
spot/NN
steel/NN
prices/NNS
will/MD
continue/VB
to/TO
fall/VB
through/IN
early/JJ
1990/CD
and/CC
then/RB
reverse/VB
themselves/PRP
./.
He/PRP
is/VBZ
n't/RB
convinced/VBN
,/,
though/RB
,/,
that/IN
the/DT
price/NN
decline/NN
reflects/VBZ
falling/VBG
demand/NN
because/IN
the/DT
world/NN
economy/NN
remains/VBZ
relatively/RB
strong/JJ
./.
And/CC
while/IN
customers/NNS
such/JJ
as/IN
steel/NN
service/NN
centers/NNS
are/VBP
continuing/VBG
to/TO
reduce/VB
inventories/NNS
through/IN
the/DT
fourth/JJ
quarter/NN
,/,
they/PRP
eventually/RB
will/MD
begin/VB
stocking/VBG
up/RP
again/RB
,/,
he/PRP
notes/VBZ
./.
It/PRP
wo/MD
n't/RB
be/VB
clear/JJ
for/IN
months/NNS
whether/IN
the/DT
price/NN
increase/NN
will/MD
stick/VB
./.
Steelmakers/NNS
announced/VBD
a/DT
round/NN
of/IN
base-price/NN
increases/NNS
last/JJ
year/NN
,/,
but/CC
began/VBD
offering/VBG
sizable/JJ
discounts/NNS
over/IN
the/DT
summer/NN
./.
In/IN
fact/NN
,/,
LTV/NNP
was/VBD
the/DT
first/JJ
steelmaker/NN
to/TO
publicly/RB
boost/VB
discounts/NNS
for/IN
buyers/NNS
of/IN
cold/JJ
rolled/VBN
sheet/NN
steel/NN
and/CC
hot-dipped/JJ
galvanized/JJ
sheet/NN
steel/NN
./.
In/IN
composite/JJ
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
trading/NN
yesterday/NN
,/,
LTV/NNP
common/JJ
shares/NNS
fell/VBD
12.5/CD
cents/NNS
to/TO
close/VB
at/IN
$/$
1.50/CD
./.
The/DT
Treasury/NNP
plans/NNS
to/TO
raise/VB
$/$
2.3/CD
billion/CD
in/IN
new/JJ
cash/NN
with/IN
the/DT
sale/NN
Monday/NNP
of/IN
about/RB
$/$
16/CD
billion/CD
in/IN
short-term/JJ
bills/NNS
to/TO
redeem/VB
$/$
13.71/CD
billion/CD
in/IN
maturing/VBG
bills/NNS
./.
However/RB
,/,
the/DT
Treasury/NNP
said/VBD
it/PRP
will/MD
postpone/VB
the/DT
auction/NN
unless/IN
it/PRP
has/VBZ
assurances/NNS
of/IN
enactment/NN
of/IN
legislation/NN
to/TO
raise/VB
the/DT
statutory/JJ
debt/NN
limit/NN
before/IN
the/DT
scheduled/JJ
auction/NN
date/NN
./.
The/DT
offering/NN
will/MD
be/VB
divided/VBN
evenly/RB
between/IN
13-week/JJ
and/CC
26-week/JJ
bills/NNS
maturing/VBG
on/IN
Feb./NNP
8/CD
,/,
1990/CD
,/,
and/CC
May/NNP
10/CD
,/,
1990/CD
,/,
respectively/RB
./.
Tenders/NNS
for/IN
the/DT
bills/NNS
,/,
available/JJ
in/IN
minimum/JJ
$/$
10,000/CD
denominations/NNS
,/,
must/MD
be/VB
received/VBN
by/IN
1/CD
p.m./NN
EST/NNP
Monday/NNP
at/IN
the/DT
Treasury/NNP
or/CC
at/IN
Federal/NNP
Reserve/NNP
banks/NNS
or/CC
branches/NNS
./.
J.C./NNP
Penney/NNP
Co./NNP
is/VBZ
extending/VBG
its/PRP$
involvement/NN
in/IN
a/DT
televised/JJ
home-shopping/NN
service/NN
by/IN
five/CD
to/TO
10/CD
years/NNS
./.
Shop/NNP
Television/NNP
Network/NNP
Inc./NNP
,/,
of/IN
Los/NNP
Angeles/NNP
,/,
said/VBD
Penney/NNP
agreed/VBD
to/TO
continue/VB
its/PRP$
exclusive/JJ
arrangement/NN
with/IN
Shop/NNP
Television/NNP
,/,
which/WDT
does/VBZ
the/DT
production/NN
,/,
marketing/NN
and/CC
cable/NN
distribution/NN
for/IN
the/DT
J.C./NNP
Penney/NNP
Television/NNP
Shopping/NNP
Channel/NNP
./.
The/DT
channel/NN
reaches/VBZ
6.5/CD
million/CD
homes/NNS
,/,
a/DT
Penney/NNP
spokesman/NN
said/VBD
./.
Michael/NNP
Rosen/NNP
,/,
president/NN
of/IN
Shop/NNP
Television/NNP
,/,
said/VBD
Penney/NN
decided/VBD
to/TO
extend/VB
its/PRP$
involvement/NN
with/IN
the/DT
service/NN
for/IN
at/IN
least/JJS
five/CD
years/NNS
./.
If/IN
,/,
by/IN
that/DT
time/NN
,/,
the/DT
network/NN
reaches/VBZ
14/CD
million/CD
homes/NNS
,/,
the/DT
contract/NN
will/MD
be/VB
renewed/VBN
for/IN
five/CD
more/JJR
years/NNS
./.
Earlier/RBR
this/DT
year/NN
,/,
Penney/NNP
abandoned/VBD
another/DT
home/NN
shopping/NN
venture/NN
,/,
Telaction/NNP
Corp./NNP
,/,
after/IN
investing/VBG
$/$
106/CD
million/CD
in/IN
it/PRP
./.
The/DT
company/NN
took/VBD
a/DT
$/$
20/CD
million/CD
charge/NN
in/IN
the/DT
fiscal/NN
first/JJ
quarter/NN
ended/VBN
April/NNP
29/CD
,/,
related/VBN
to/TO
discontinuing/VBG
the/DT
service/NN
./.
its/PRP$
centennial/JJ
year/NN
,/,
The/DT
Wall/NNP
Street/NNP
Journal/NNP
will/MD
report/VB
events/NNS
of/IN
the/DT
past/JJ
century/NN
that/DT
stand/NN
as/IN
milestones/NNS
of/IN
American/JJ
business/NN
history/NN
./.
LUTHER/NNP
BURBANK/NNP
CROSS-BRED/VBD
PLANTS/NNS
to/TO
produce/VB
the/DT
billion-dollar/JJ
Idaho/NNP
potato/NN
./.
Bioengineers/NNS
set/VBD
out/RP
to/TO
duplicate/VB
that/DT
feat/NN
--/:
scientifically/RB
and/CC
commercially/RB
--/:
with/IN
new/JJ
life/NN
forms/NNS
./.
In/IN
1953/CD
,/,
James/NNP
Watson/NNP
and/CC
his/PRP$
colleagues/NNS
unlocked/VBD
the/DT
double/JJ
helix/NN
of/IN
DNA/NN
deoxyribonucleic/JJ
acid/NN
the/DT
genetic/JJ
key/NN
to/TO
heredity/NN
./.
Twenty/CD
years/NNS
later/RB
,/,
two/CD
California/NNP
academics/NNS
,/,
Stanley/NNP
Cohen/NNP
and/CC
Herbert/NNP
Boyer/NNP
,/,
made/VBD
``/``
recombinant/JJ
''/''
DNA/NN
,/,
transplanting/VBG
a/DT
toad/NN
's/POS
gene/NN
into/IN
bacteria/NNS
,/,
which/WDT
then/RB
reproduced/VBD
toad/NN
genes/NNS
./.
When/WRB
Boyer/NNP
met/VBD
Robert/NNP
Swanson/NNP
,/,
an/DT
M.I.T.-trained/JJ
chemist-turned-entrepreneur/NN
in/IN
1976/CD
,/,
they/PRP
saw/VBD
dollar/NN
signs/NNS
./.
With/IN
$/$
500/CD
apiece/RB
and/CC
an/DT
injection/NN
of/IN
outside/JJ
capital/NN
,/,
they/PRP
formed/VBD
Genentech/NNP
Inc/NNP
./.
Commercial/JJ
gene-splicing/NN
was/VBD
born/VBN
./.
Genentech/NNP
's/POS
first/JJ
product/NN
,/,
a/DT
brain/NN
protein/NN
called/VBD
somatostatin/NN
,/,
proved/VBD
its/PRP$
technology/NN
./.
The/DT
next/JJ
to/TO
be/VB
cloned/VBN
,/,
human/JJ
insulin/NN
,/,
had/VBD
market/NN
potential/NN
and/CC
Genentech/NNP
licensed/VBD
it/PRP
to/TO
Eli/NNP
Lilly/NNP
,/,
which/WDT
produced/VBD
80/CD
%/NN
of/IN
the/DT
insulin/NN
used/VBN
by/IN
1.5/CD
million/CD
U.S./NNP
diabetics/NNS
./.
Their/PRP$
laboratory/NN
credentials/NNS
established/VBN
,/,
Boyer/NNP
and/CC
Swanson/NNP
headed/VBD
for/IN
Wall/NNP
Street/NNP
in/IN
1980/CD
./.
At/IN
the/DT
time/NN
,/,
Genentech/NN
had/VBD
only/RB
one/CD
profitable/JJ
year/NN
behind/IN
it/PRP
a/DT
modest/JJ
$/$
116,000/CD
on/IN
revenue/NN
of/IN
$/$
2.6/CD
million/CD
in/IN
1979/CD
no/DT
product/NN
of/IN
its/PRP$
own/JJ
on/IN
the/DT
market/NN
./.
Nonetheless/RB
,/,
the/DT
$/$
36/CD
million/CD
issue/NN
they/PRP
floated/VBD
in/IN
1980/CD
opened/VBD
at/IN
$/$
35/CD
and/CC
leaped/VBD
to/TO
$/$
89/CD
within/IN
20/CD
minutes/NNS
./.
The/DT
trip/NN
from/IN
the/DT
test/NN
tube/NN
was/VBD
not/RB
without/IN
snags/NNS
./.
Boyer/NNP
and/CC
Cohen/NNP
,/,
for/IN
instance/NN
,/,
both/DT
still/RB
university/NN
researchers/NNS
,/,
had/VBD
to/TO
be/VB
talked/VBN
into/IN
applying/VBG
for/IN
a/DT
patent/NN
on/IN
their/PRP$
gene-splicing/NN
technique/NN
--/:
and/CC
then/RB
the/DT
Patent/NNP
Office/NNP
refused/VBD
to/TO
grant/VB
it/PRP
./.
That/DT
judgment/NN
,/,
in/IN
turn/NN
,/,
was/VBD
reversed/VBN
by/IN
the/DT
U.S./NNP
Supreme/NNP
Court/NNP
,/,
leaving/VBG
Cohen/NNP
and/CC
Boyer/NNP
holding/VBG
the/DT
first/JJ
patents/NNS
for/IN
making/VBG
recombinant/JJ
DNA/NNP
their/PRP$
schools/NNS
Gene-splicing/NN
now/RB
is/VBZ
an/DT
integral/JJ
part/NN
of/IN
the/DT
drug/NN
business/NN
./.
Genentech/NN
's/POS
1988/CD
sales/NNS
were/VBD
$/$
335/CD
million/CD
,/,
both/CC
from/IN
licensing/NN
and/CC
its/PRP$
own/JJ
products/NNS
./.
The/DT
portfolio/NN
unit/NN
of/IN
the/DT
French/JJ
bank/NN
group/NN
Credit/NNP
Lyonnais/NNP
told/VBD
stock/NN
market/NN
regulators/NNS
that/IN
it/PRP
bought/VBD
43,000/CD
shares/NNS
of/IN
Cie./NNP
de/FW
Navigation/NNP
Mixte/NNP
,/,
apparently/RB
to/TO
help/VB
fend/VB
off/RP
an/DT
unwelcome/JJ
takeover/NN
bid/NN
for/IN
the/DT
company/NN
./.
Earlier/RBR
yesterday/NN
,/,
the/DT
Societe/NNP
de/FW
Bourses/NNP
Francaises/NNP
was/VBD
told/VBN
that/IN
a/DT
unit/NN
of/IN
Framatome/NNP
S.A./NNP
also/RB
bought/VBD
Navigation/NNP
Mixte/NNP
shares/NNS
,/,
this/DT
purchase/NN
covering/VBG
more/JJR
than/IN
160,000/CD
shares/NNS
./.
Both/DT
companies/NNS
are/VBP
allies/NNS
of/IN
Navigation/NNP
Mixte/NNP
in/IN
its/PRP$
fight/NN
against/IN
a/DT
hostile/JJ
takeover/NN
bid/NN
launched/VBN
last/JJ
week/NN
by/IN
Cie/NNP
./.
Financiere/NNP
de/FW
Paribas/NNP
at/IN
1,850/CD
French/JJ
francs/NNS
$/$
297/CD
a/DT
share/NN
./.
Navigation/NNP
Mixte/NNP
's/POS
chairman/NN
had/VBD
suggested/VBN
that/IN
friendly/JJ
institutions/NNS
were/VBD
likely/JJ
to/TO
buy/VB
its/PRP$
stock/NN
as/RB
soon/RB
as/IN
trading/NN
opened/VBD
Monday/NNP
./.
The/DT
Credit/NNP
Lyonnais/NNP
purchase/NN
,/,
for/IN
33,000/CD
regular/JJ
common/JJ
shares/NNS
and/CC
10,000/CD
newly/RB
created/VBN
shares/NNS
,/,
is/VBZ
valued/VBN
at/IN
about/RB
slightly/RB
more/JJR
than/IN
80/CD
million/CD
French/JJ
francs/NNS
./.
Unocal/NNP
Corp./NNP
,/,
Los/NNP
Angeles/NNP
,/,
said/VBD
it/PRP
and/CC
Petroleos/NNP
de/FW
Venezuela/NNP
S.A./NNP
would/MD
create/VB
a/DT
petroleum/NN
marketing/NN
and/CC
refining/NN
general/JJ
partnership/NN
in/IN
the/DT
Midwest/NNP
./.
The/DT
joint/JJ
venture/NN
,/,
Uno-Ven/NNP
Co./NNP
,/,
would/MD
generate/VB
total/JJ
annual/JJ
revenue/NN
of/IN
about/RB
$/$
500/CD
million/CD
and/CC
have/VB
1,100/CD
employees/NNS
,/,
a/DT
Unocal/NNP
spokesman/NN
said/VBD
./.
Unocal/NNP
said/VBD
the/DT
venture/NN
would/MD
enable/VB
it/PRP
to/TO
recover/VB
more/JJR
of/IN
its/PRP$
refining/NN
and/CC
marketing/NN
investment/NN
and/CC
prepare/VB
for/IN
expected/JJ
growth/NN
in/IN
exploration/NN
,/,
production/NN
,/,
chemicals/NNS
and/CC
other/JJ
areas/NNS
./.
It/PRP
said/VBD
financing/NN
would/MD
consist/VB
of/IN
$/$
250/CD
million/CD
from/IN
a/DT
private/JJ
placement/NN
obtained/VBN
through/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
and/CC
a/DT
$/$
150/CD
million/CD
revolving/JJ
credit/NN
line/NN
underwritten/VBN
by/IN
Chase/NNP
Manhattan/NNP
Bank/NNP
./.
In/IN
addition/NN
to/TO
Unocal/NNP
's/POS
153,000/CD
barrel-a-day/JJ
refinery/NN
near/IN
Lemont/NNP
,/,
Ill./NNP
,/,
the/DT
new/JJ
venture/NN
would/MD
control/VB
17/CD
distribution/NN
terminals/NNS
,/,
a/DT
lubricating-oil/NN
blending/NN
and/CC
packaging/NN
plant/NN
,/,
and/CC
131/CD
company-owned/JJ
Unocal/NNP
service/NN
stations/NNS
./.
It/PRP
said/VBD
the/DT
venture/NN
,/,
expected/VBN
to/TO
take/VB
control/NN
of/IN
the/DT
facilities/NNS
Dec./NNP
1/CD
,/,
would/MD
also/RB
serve/VB
another/DT
3,300/CD
independent/JJ
Unocal/NNP
gasoline/NN
stations/NNS
./.
Petroleos/NNP
will/MD
supply/VB
135,000/CD
barrels/NNS
of/IN
oil/NN
a/DT
day/NN
for/IN
the/DT
refinery/NN
,/,
Unocal/NNP
said/VBD
./.
Mitsubishi/NNP
Heavy/NNP
Industries/NNP
Ltd./NNP
said/VBD
unconsolidated/JJ
pretax/JJ
earnings/NNS
in/IN
the/DT
fiscal/NN
first/JJ
half/NN
surged/VBD
79/CD
%/NN
to/TO
a/DT
record/JJ
63.25/CD
billion/CD
yen/NNS
$/$
445.7/CD
million/CD
strong/JJ
demand/NN
for/IN
a/DT
variety/NN
of/IN
products/NNS
./.
In/IN
the/DT
period/NN
ended/VBN
Sept./NNP
30/CD
,/,
net/JJ
income/NN
rose/VBD
90/CD
%/NN
to/TO
31.18/CD
billion/CD
yen/NNS
,/,
or/CC
9.34/CD
yen/NNS
a/DT
share/NN
,/,
from/IN
16.38/CD
billion/CD
yen/NNS
,/,
or/CC
5.05/CD
yen/NNS
a/DT
share/NN
./.
A/DT
year/NN
ago/RB
,/,
the/DT
Tokyo/NNP
company/NN
had/VBD
pretax/JJ
profit/NN
of/IN
35.38/CD
billion/CD
yen/NNS
./.
Sales/NNS
amounted/VBD
to/TO
1.011/CD
trillion/CD
yen/NNS
,/,
climbing/VBG
29/CD
%/NN
from/IN
787.02/CD
billion/CD
yen/NNS
./.
Encouraged/VBN
by/IN
the/DT
brisk/JJ
performance/NN
,/,
Mitsubishi/NNP
plans/VBZ
to/TO
raise/VB
its/PRP$
per-share/JJ
dividend/NN
to/TO
3.50/CD
yen/NNS
from/IN
three/CD
yen/NNS
./.
Company/NN
officials/NNS
said/VBD
the/DT
current/JJ
robust/JJ
domestic/JJ
demand/NN
that/WDT
has/VBZ
been/VBN
fueling/VBG
sustained/JJ
economic/JJ
expansion/NN
helped/VBD
push/NN
up/RP
sales/NNS
of/IN
products/NNS
like/IN
ships/NNS
,/,
steel/NN
structures/NNS
,/,
power/NN
systems/NNS
and/CC
machinery/NN
and/CC
resulted/VBD
in/IN
sharply/RB
higher/JJR
profit/NN
./.
Senate/NNP
leaders/NNS
traded/VBD
proposals/NNS
aimed/VBN
at/IN
speeding/VBG
action/NN
on/IN
legislation/NN
to/TO
narrow/VB
the/DT
deficit/NN
and/CC
raise/VB
the/DT
federal/JJ
government/NN
's/POS
debt/NN
limit/NN
--/:
but/CC
the/DT
major/JJ
stumbling/JJ
block/NN
remains/VBZ
President/NNP
Bush/NNP
's/POS
proposal/NN
to/TO
cut/VB
the/DT
capital-gains/NNS
tax/NN
rate/NN
./.
the/DT
tax/NN
provision/NN
to/TO
be/VB
a/DT
separate/JJ
bill/NN
,/,
subject/JJ
to/TO
the/DT
usual/JJ
procedural/JJ
obstacles/NNS
./.
Republicans/NNPS
,/,
meanwhile/RB
,/,
want/VBP
to/TO
try/VB
to/TO
protect/VB
the/DT
measure/NN
by/IN
combining/VBG
it/PRP
with/IN
two/CD
politically/RB
popular/JJ
issues/NNS
that/IN
Democrats/NNPS
could/MD
find/VB
hard/JJ
to/TO
block/VB
./.
The/DT
talks/NNS
between/IN
Senate/NNP
Majority/NNP
Leader/NNP
George/NNP
Mitchell/NNP
of/IN
Maine/NNP
and/CC
his/PRP$
GOP/NNP
counterpart/NN
,/,
Sen./NNP
Robert/NNP
Dole/NNP
of/IN
Kansas/NNP
,/,
are/VBP
expected/VBN
to/TO
resume/VB
today/NN
./.
Last/JJ
night/NN
,/,
after/IN
meeting/NN
with/IN
Mr./NNP
Bush/NNP
and/CC
administration/NN
officials/NNS
at/IN
the/DT
White/NNP
House/NNP
,/,
Mr./NNP
Dole/NNP
proposed/VBD
streamlining/VBG
the/DT
fiscal/JJ
1990/CD
deficit-reduction/JJ
bill/NN
,/,
now/RB
stalled/VBN
in/IN
a/DT
House-Senate/NNP
conference/NN
committee/NN
,/,
and/CC
passing/VBG
a/DT
long-term/JJ
extension/NN
of/IN
the/DT
federal/JJ
debt/NN
ceiling/NN
without/IN
any/DT
accompanying/VBG
amendments/NNS
./.
Under/IN
this/DT
plan/NN
,/,
two/CD
provisions/NNS
currently/RB
in/IN
the/DT
House/NNP
version/NN
of/IN
the/DT
deficit-cutting/JJ
bill/NN
--/:
repeal/NN
of/IN
both/DT
the/DT
catastrophic-illness/JJ
insurance/NN
program/NN
and/CC
a/DT
controversial/JJ
1986/CD
tax/NN
provision/NN
intended/VBN
to/TO
counter/VB
discrimination/NN
in/IN
employee-benefit/JJ
plans/NNS
--/:
would/MD
be/VB
made/VBN
into/IN
a/DT
separate/JJ
bill/NN
./.
Republicans/NNPS
would/MD
try/VB
to/TO
attach/VB
a/DT
capital-gains/NNS
provision/NN
to/TO
that/DT
legislation/NN
,/,
hoping/VBG
the/DT
political/JJ
popularity/NN
of/IN
its/PRP$
other/JJ
two/CD
parts/NNS
would/MD
dissuade/VB
Democrats/NNPS
from/IN
blocking/VBG
it/PRP
./.
Democrats/NNPS
want/VBP
to/TO
avoid/VB
having/VBG
to/TO
make/VB
that/DT
choice/NN
by/IN
making/VBG
the/DT
capital-gains/NNS
tax/NN
cut/NN
an/DT
individual/JJ
bill/NN
./.
Sen./NNP
Mitchell/NNP
is/VBZ
confident/JJ
he/PRP
has/VBZ
sufficient/JJ
votes/NNS
to/TO
block/VB
such/PDT
a/DT
measure/NN
with/IN
procedural/JJ
actions/NNS
./.
Both/DT
plans/NNS
would/MD
drop/VB
child-care/NN
provisions/NNS
from/IN
the/DT
House/NNP
version/NN
of/IN
the/DT
deficit-reduction/JJ
legislation/NN
and/CC
let/VB
it/PRP
progress/VB
as/IN
a/DT
separate/JJ
bill/NN
./.
While/IN
that/DT
could/MD
make/VB
it/PRP
vulnerable/JJ
to/TO
a/DT
veto/NN
by/IN
Mr./NNP
Bush/NNP
,/,
Democrats/NNP
argue/VBP
that/IN
a/DT
presidential/JJ
rejection/NN
would/MD
give/VB
their/PRP$
party/NN
a/DT
valuable/JJ
issue/NN
in/IN
next/JJ
year/NN
's/POS
congressional/JJ
elections/NNS
./.
Senate/NNP
Democrats/NNPS
are/VBP
to/TO
meet/VB
today/NN
to/TO
consider/VB
the/DT
GOP/NNP
proposal/NN
./.
Yesterday/NN
,/,
Mr./NNP
Dole/NNP
seemed/VBD
weary/JJ
of/IN
the/DT
Bush/NNP
administration/NN
's/POS
strategy/NN
of/IN
pushing/VBG
the/DT
capital-gains/NNS
measure/NN
at/IN
every/DT
chance/NN
in/IN
the/DT
face/NN
of/IN
Democratic/JJ
procedural/JJ
hurdles/NNS
./.
Pushing/VBG
the/DT
issue/NN
on/IN
legislation/NN
needed/VBN
to/TO
avoid/VB
default/NN
by/IN
the/DT
federal/JJ
government/NN
,/,
he/PRP
told/VBD
reporters/NNS
,/,
``/``
does/VBZ
n't/RB
seem/VB
to/TO
be/VB
very/RB
good/JJ
strategy/NN
to/TO
me/PRP
./.
''/''
At/IN
12:01/CD
a.m./NN
EST/RB
today/NN
,/,
the/DT
federal/JJ
government/NN
's/POS
temporary/JJ
$/$
2.87/CD
trillion/CD
debt/NN
limit/NN
expired/VBD
./.
To/TO
avoid/VB
default/NN
,/,
lawmakers/NNS
must/MD
pass/VB
legislation/NN
raising/VBG
the/DT
limit/NN
to/TO
$/$
3.12/CD
trillion/CD
from/IN
$/$
2.80/CD
trillion/CD
by/IN
next/JJ
Wednesday/NNP
,/,
according/VBG
to/TO
the/DT
Treasury/NNP
./.
Pressed/VBN
by/IN
Chairman/NNP
Dan/NNP
Rostenkowski/NNP
D./NNP
,/,
Ill/NNP
./.
the/DT
House/NNP
Ways/NNP
and/CC
Means/NNP
Committee/NNP
,/,
Treasury/NNP
Undersecretary/NNP
Robert/NNP
Glauber/NNP
told/VBD
a/DT
congressional/JJ
hearing/NN
that/IN
the/DT
administration/NN
would/MD
give/VB
up/RP
its/PRP$
demand/NN
for/IN
the/DT
capital-gains/NNS
tax/NN
cut/NN
if/IN
faced/VBN
with/IN
a/DT
potential/JJ
default/NN
./.
Price/NNP
Stern/NNP
Sloan/NNP
Inc./NNP
said/VBD
it/PRP
hired/VBD
an/DT
investment/NN
banking/NN
firm/NN
to/TO
assist/VB
in/IN
evaluating/VBG
restructuring/NN
or/CC
merger/NN
alternatives/NNS
and/CC
reported/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
8.1/CD
million/CD
,/,
or/CC
$/$
2.14/CD
a/DT
share/NN
,/,
for/IN
the/DT
third/JJ
quarter/NN
ended/VBN
Sept/NNP
./.
These/DT
results/NNS
compare/VBP
with/IN
net/JJ
income/NN
of/IN
$/$
1.8/CD
million/CD
,/,
or/CC
44/CD
cents/NNS
a/DT
share/NN
,/,
for/IN
the/DT
corresponding/JJ
period/NN
last/JJ
year/NN
./.
This/DT
quarter/NN
's/POS
loss/NN
includes/VBZ
pretax/JJ
charges/NNS
of/IN
$/$
4.9/CD
million/CD
on/IN
the/DT
proposed/JJ
discontinuation/NN
of/IN
the/DT
company/NN
's/POS
troubled/JJ
British/JJ
subsidiary/NN
,/,
and/CC
$/$
3.7/CD
million/CD
of/IN
other/JJ
write-offs/NNS
the/DT
company/NN
said/VBD
were/VBD
non-recurring/JJ
and/CC
principally/RB
related/VBN
to/TO
inventory/NN
,/,
publishing/NN
advances/NNS
and/CC
pre-publication/JJ
costs/NNS
./.
The/DT
publishing/NN
concern/NN
said/VBD
it/PRP
retained/VBD
the/DT
investment/NN
banking/NN
firm/NN
of/IN
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
Securities/NNP
Inc./NNP
to/TO
act/VB
as/IN
its/PRP$
financial/JJ
adviser/NN
,/,
assisting/VBG
in/IN
the/DT
evaluation/NN
of/IN
various/JJ
financial/JJ
and/CC
strategic/JJ
alternatives/NNS
,/,
including/VBG
debt/NN
refinancing/NN
,/,
raising/VBG
capital/NN
,/,
recapitalization/NN
,/,
a/DT
merger/NN
or/CC
sale/NN
of/IN
the/DT
company/NN
./.
The/DT
company/NN
also/RB
retained/VBD
attorney/NN
Martin/NNP
P./NNP
Levin/NNP
,/,
a/DT
director/NN
of/IN
the/DT
company/NN
and/CC
former/JJ
head/NN
of/IN
the/DT
Times-Mirror/NNP
Publishing/NNP
Group/NNP
,/,
as/IN
an/DT
adviser/NN
./.
Net/JJ
sales/NNS
for/IN
this/DT
year/NN
's/POS
third/JJ
quarter/NN
were/VBD
$/$
14/CD
million/CD
,/,
down/RB
from/IN
$/$
21.4/CD
million/CD
last/JJ
year/NN
./.
The/DT
company/NN
attributed/VBD
the/DT
decrease/NN
in/IN
part/NN
to/TO
the/DT
exclusion/NN
of/IN
the/DT
company/NN
's/POS
British/JJ
sales/NNS
from/IN
the/DT
current/JJ
year/NN
's/POS
figures/NNS
as/IN
a/DT
result/NN
of/IN
the/DT
subsidiary/NN
's/POS
status/NN
as/IN
a/DT
proposed/JJ
discontinued/JJ
operation/NN
and/CC
,/,
in/IN
part/NN
,/,
to/TO
lower/VB
sales/NNS
in/IN
certain/JJ
key/JJ
foreign/JJ
and/CC
domestic/JJ
accounts/NNS
./.
U.K./NNP
sales/NNS
for/IN
last/JJ
year/NN
's/POS
quarter/NN
were/VBD
about/RB
$/$
3/CD
million/CD
./.
Stock/NN
prices/NNS
surged/VBD
as/IN
a/DT
multibillion-dollar/JJ
takeover/NN
proposal/NN
helped/VBD
restore/VB
market/NN
players/NNS
'/POS
confidence/NN
about/IN
the/DT
prospects/NNS
for/IN
further/JJ
deal-making/NN
./.
Paper/NN
and/CC
forest-products/NNS
stocks/NNS
were/VBD
especially/RB
strong/JJ
,/,
as/IN
the/DT
offer/NN
for/IN
Great/NNP
Northern/NNP
Nekoosa/NNP
by/IN
Georgia-Pacific/NNP
triggered/VBD
speculation/NN
that/IN
the/DT
industry/NN
could/MD
be/VB
in/IN
for/IN
a/DT
wave/NN
of/IN
merger/NN
activity/NN
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
climbed/VBD
41.60/CD
to/TO
2645.08/CD
even/RB
though/IN
some/DT
late/JJ
selling/NN
caused/VBD
the/DT
market/NN
to/TO
retreat/VB
from/IN
session/NN
highs/NNS
./.
Trading/NN
was/VBD
moderate/JJ
,/,
with/IN
176,100,000/CD
shares/NNS
changing/VBG
hands/NNS
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
Aside/RB
from/IN
the/DT
takeover/NN
news/NN
,/,
big/JJ
buy/NN
orders/NNS
were/VBD
placed/VBN
for/IN
blue-chip/JJ
shares/NNS
in/IN
afternoon/NN
trading/NN
./.
Traders/NNS
said/VBD
the/DT
buy/NN
programs/NNS
came/VBD
from/IN
very/RB
large/JJ
institutional/JJ
accounts/NNS
that/WDT
were/VBD
also/RB
active/JJ
in/IN
the/DT
stock-index/NN
futures/NNS
markets/NNS
./.
At/IN
one/CD
point/NN
,/,
almost/RB
all/DT
of/IN
the/DT
shares/NNS
in/IN
the/DT
20-stock/JJ
Major/NNP
Market/NNP
Index/NNP
,/,
which/WDT
mimics/VBZ
the/DT
industrial/JJ
average/NN
,/,
were/VBD
sharply/RB
higher/JJR
./.
Some/DT
1,111/CD
Big/NNP
Board/NNP
issues/NNS
advanced/VBD
in/IN
price/NN
and/CC
only/RB
448/CD
declined/VBD
,/,
while/IN
broader/JJR
market/NN
averages/NNS
rose/VBD
sharply/RB
./.
Standard/NNP
&/CC
Poor/NNP
's/POS
500-Stock/NNP
Index/NNP
climbed/VBD
5.29/CD
to/TO
340.36/CD
,/,
the/DT
Dow/NNP
Jones/NNP
Equity/NNP
Market/NNP
Index/NNP
added/VBD
4.70/CD
to/TO
318.79/CD
and/CC
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
Composite/NNP
Index/NNP
climbed/VBD
2.65/CD
to/TO
Great/NNP
Northern/NNP
surged/VBD
20/CD
1\/8/CD
to/TO
62/CD
7\/8/CD
,/,
well/RB
above/IN
Georgia-Pacific/NNP
's/POS
offering/NN
price/NN
of/IN
$/$
58/CD
a/DT
share/NN
,/,
amid/IN
speculation/NN
that/IN
other/JJ
suitors/NNS
for/IN
the/DT
company/NN
would/MD
surface/VB
or/CC
that/IN
the/DT
bid/NN
would/MD
be/VB
raised/VBN
./.
Nearly/RB
6.3/CD
million/CD
shares/NNS
,/,
or/CC
about/RB
11.5/CD
%/NN
of/IN
the/DT
company/NN
's/POS
shares/NNS
outstanding/JJ
,/,
changed/VBD
hands/NNS
in/IN
Big/NNP
Board/NNP
composite/JJ
trading/NN
./.
With/IN
stocks/NNS
having/VBG
been/VBN
battered/VBN
lately/RB
because/IN
of/IN
the/DT
collapse/NN
of/IN
takeover/NN
offers/NNS
for/IN
UAL/NNP
,/,
the/DT
parent/NN
company/NN
of/IN
United/NNP
Airlines/NNPS
,/,
and/CC
AMR/NNP
,/,
the/DT
parent/NN
of/IN
American/NNP
Airlines/NNPS
,/,
analysts/NNS
viewed/VBD
the/DT
proposal/NN
as/IN
a/DT
psychological/JJ
lift/NN
for/IN
the/DT
market/NN
./.
The/DT
$/$
3.18/CD
billion/CD
bid/NN
,/,
which/WDT
had/VBD
been/VBN
rumored/VBN
since/IN
last/JJ
week/NN
,/,
``/``
creates/VBZ
a/DT
better/JJR
feeling/NN
that/IN
there/EX
's/VBZ
value/NN
in/IN
the/DT
market/NN
at/IN
current/JJ
levels/NNS
and/CC
renews/VBZ
prospects/NNS
for/IN
a/DT
hot/JJ
tape/NN
,/,
''/''
says/VBZ
A.C./NNP
Moore/NNP
,/,
director/NN
of/IN
research/NN
at/IN
Argus/NNP
Research/NNP
Corp/NNP
./.
Traders/NNS
and/CC
analysts/NNS
alike/RB
said/VBD
the/DT
market/NN
's/POS
surge/NN
also/RB
reflected/VBD
an/DT
easing/NN
of/IN
concerns/NNS
about/IN
volatility/NN
because/IN
of/IN
moves/NNS
by/IN
a/DT
number/NN
of/IN
brokerage/NN
firms/NNS
to/TO
curtail/VB
or/CC
cease/VB
stock-index/JJ
arbitrage/NN
./.
Much/JJ
of/IN
the/DT
instability/NN
in/IN
stock/NN
prices/NNS
lately/RB
has/VBZ
been/VBN
blamed/VBN
on/IN
arbitrage/NN
trading/NN
,/,
designed/VBN
to/TO
profit/VB
from/IN
differences/NNS
in/IN
prices/NNS
between/IN
stocks/NNS
and/CC
index/NN
futures/NNS
./.
``/``
People/NNS
are/VBP
looking/VBG
for/IN
an/DT
ability/NN
to/TO
try/VB
and/CC
read/VB
the/DT
market/NN
,/,
rather/RB
than/IN
be/VB
manipulated/VBN
,/,
''/''
said/VBD
Dudley/NNP
A./NN
Eppel/NNP
,/,
manager/NN
of/IN
equity/NN
trading/NN
at/IN
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
./.
He/PRP
noted/VBD
that/IN
institutional/JJ
investors/NNS
showed/VBD
``/``
pretty/RB
general/JJ
''/''
interest/NN
in/IN
stocks/NNS
in/IN
the/DT
latest/JJS
session/NN
./.
But/CC
traders/NNS
also/RB
said/VBD
arbitrage-related/JJ
trading/NN
contributed/VBD
to/TO
the/DT
market/NN
's/POS
surge/NN
,/,
as/IN
buy/NN
programs/NNS
boosted/VBD
prices/NNS
shortly/RB
after/IN
the/DT
opening/NN
and/CC
sporadically/RB
through/IN
the/DT
remainder/NN
of/IN
the/DT
session/NN
./.
Georgia-Pacific/NNP
fell/VBD
2/CD
1\/2/CD
to/TO
50/CD
7\/8/CD
,/,
but/CC
most/JJS
paper/NN
and/CC
forest-products/NNS
stocks/NNS
firmed/VBD
as/IN
market/NN
players/NNS
speculated/VBD
about/IN
other/JJ
potential/JJ
industry/NN
takeover/NN
targets/NNS
./.
Within/IN
the/DT
paper/NN
sector/NN
,/,
Mead/NNP
climbed/VBD
2/CD
3\/8/CD
to/TO
38/CD
3\/4/CD
on/IN
1.3/CD
million/CD
shares/NNS
,/,
Union/NNP
Camp/NNP
rose/VBD
2/CD
3\/4/CD
to/TO
37/CD
3\/4/CD
,/,
Federal/NNP
Paper/NNP
Board/NNP
added/VBD
1/CD
3\/4/CD
to/TO
23/CD
7\/8/CD
,/,
Bowater/NN
gained/VBD
1/CD
1\/2/CD
to/TO
27/CD
1\/2/CD
,/,
Stone/NNP
Container/NNP
rose/VBD
1/CD
to/TO
26/CD
1\/8/CD
and/CC
Temple-Inland/NNP
jumped/VBD
3/CD
3\/4/CD
to/TO
62/CD
1\/4/CD
./.
Forest-products/NNS
issues/NNS
showing/VBG
strength/NN
included/VBD
Champion/NNP
International/NNP
,/,
which/WDT
went/VBD
up/RB
1/CD
3\/8/CD
to/TO
31/CD
7\/8/CD
;/:
Weyerhaeuser/NNP
,/,
up/RB
3\/4/CD
to/TO
27/CD
1\/4/CD
;/:
Louisiana-Pacific/NNP
,/,
up/RB
1/CD
1\/8/CD
to/TO
40/CD
3\/8/CD
,/,
and/CC
Boise/NNP
Cascade/NNP
,/,
up/RB
5\/8/CD
to/TO
42/CD
./.
The/DT
theme/NN
of/IN
industry/NN
consolidation/NN
had/VBD
surfaced/VBN
earlier/RBR
this/DT
year/NN
among/IN
drug/NN
stocks/NNS
,/,
which/WDT
posted/VBD
solid/JJ
gains/NNS
in/IN
the/DT
latest/JJS
session/NN
./.
Pfizer/NNP
gained/VBN
1/CD
7\/8/CD
to/TO
67/CD
5\/8/CD
,/,
Schering-Plough/NNP
added/VBD
2/CD
1\/4/CD
to/TO
75/CD
3\/4/CD
,/,
Eli/NNP
Lilly/NNP
rose/VBD
1/CD
3\/8/CD
to/TO
62/CD
1\/8/CD
and/CC
Upjohn/NNP
firmed/VBD
3\/4/CD
to/TO
38/CD
./.
Also/RB
,/,
SmithKline/NNP
Beecham/NNP
rose/VBD
1/CD
3\/8/CD
to/TO
39/CD
1\/2/CD
./.
An/DT
advisory/JJ
committee/NN
of/IN
the/DT
Food/NNP
and/CC
Drug/NNP
Administration/NNP
recommended/VBD
that/IN
the/DT
agency/NN
approve/VB
Eminase/NNP
,/,
the/DT
company/NN
's/POS
heart/NN
drug/NN
./.
Two/CD
rumored/JJ
restructuring/NN
candidates/NNS
in/IN
the/DT
oil/NN
industry/NN
moved/VBD
higher/RBR
:/:
Chevron/NNP
,/,
which/WDT
rose/VBD
1/CD
3\/4/CD
to/TO
68/CD
1\/4/CD
on/IN
3.5/CD
million/CD
shares/NNS
,/,
and/CC
USX/NNP
,/,
which/WDT
gained/VBD
1/CD
1\/4/CD
to/TO
34/CD
5\/8/CD
./.
Pennzoil/NNP
is/VBZ
rumored/VBN
to/TO
be/VB
accumulating/VBG
a/DT
stake/NN
in/IN
Chevron/NNP
in/IN
order/NN
to/TO
push/VB
for/IN
a/DT
revamping/NN
of/IN
the/DT
company/NN
;/:
investor/NN
Carl/NNP
Icahn/NNP
has/VBZ
recently/RB
increased/VBN
his/PRP$
stake/NN
in/IN
USX/NNP
,/,
which/WDT
separately/RB
reported/VBD
earnings/NNS
that/WDT
were/VBD
in/IN
line/NN
with/IN
expectations/NNS
./.
Paramount/NNP
Communications/NNP
,/,
which/WDT
completed/VBD
the/DT
$/$
3.35/CD
billion/CD
sale/NN
of/IN
its/PRP$
Associates/NNPS
Corp/NNP
./.
financial-services/NNS
unit/NN
to/TO
Ford/NNP
Motor/NNP
,/,
gained/VBD
1/CD
1\/8/CD
to/TO
55/CD
7\/8/CD
after/IN
losing/VBG
one/CD
point/NN
Monday/NNP
amid/IN
rumors/NNS
of/IN
a/DT
delay/NN
./.
The/DT
company/NN
said/VBD
the/DT
sale/NN
would/MD
produce/VB
a/DT
$/$
1.2/CD
billion/CD
gain/NN
in/IN
the/DT
fourth/JJ
quarter/NN
./.
BankAmerica/NNP
climbed/VBD
1/CD
3\/4/CD
to/TO
30/CD
after/IN
PaineWebber/NNP
boosted/VBD
its/PRP$
investment/NN
opinion/NN
on/IN
the/DT
stock/NN
to/TO
its/PRP$
highest/JJS
rating/NN
./.
The/DT
upgrade/NN
reflected/VBD
the/DT
20/CD
%/NN
decline/NN
in/IN
shares/NNS
of/IN
the/DT
bank/NN
since/IN
the/DT
firm/NN
lowered/VBD
its/PRP$
rating/NN
in/IN
early/JJ
October/NNP
,/,
based/VBN
on/IN
the/DT
belief/NN
the/DT
stock/NN
had/VBD
become/VBN
expensive/JJ
./.
Sea/NNP
Containers/NNPS
,/,
which/WDT
unveiled/VBD
a/DT
proposed/JJ
restructuring/NN
,/,
advanced/VBD
1/CD
to/TO
62/CD
./.
The/DT
company/NN
said/VBD
it/PRP
would/MD
repurchase/VBD
half/NN
of/IN
its/PRP$
common/JJ
shares/NNS
at/IN
$/$
70/CD
each/DT
,/,
sell/VB
an/DT
estimated/JJ
$/$
1.1/CD
billion/CD
in/IN
assets/NNS
and/CC
pay/VB
a/DT
special/JJ
preferred-stock/JJ
dividend/NN
to/TO
common-stock/JJ
holders/NNS
./.
Shaw/NNP
Industries/NNP
,/,
which/WDT
agreed/VBD
to/TO
acquire/VB
Armstrong/NNP
World/NNP
Industries/NNP
'/POS
carpet/NN
operations/NNS
for/IN
an/DT
undisclosed/JJ
price/NN
,/,
rose/VBD
2/CD
1\/4/CD
to/TO
26/CD
1\/8/CD
./.
Armstrong/NNP
added/VBD
1\/8/CD
to/TO
39/CD
1\/8/CD
./.
ERC/NNP
Corp./NNP
rose/VBD
7\/8/CD
to/TO
12/CD
./.
The/DT
company/NN
agreed/VBD
definitively/RB
to/TO
be/VB
acquired/VBN
by/IN
Ogden/NNP
Corp./NNP
in/IN
a/DT
stock/NN
swap/NN
valued/VBN
at/IN
about/RB
$/$
82.5/CD
million/CD
./.
Ogden/NNP
gained/VBD
1/CD
1\/4/CD
to/TO
32/CD
7\/8/CD
./.
Ocean/NNP
Drilling/NNP
&/CC
Research/NNP
dropped/VBD
1/CD
1\/4/CD
to/TO
21/CD
1\/2/CD
following/VBG
news/NN
of/IN
a/DT
restructuring/NN
plan/NN
that/WDT
calls/VBZ
for/IN
the/DT
company/NN
to/TO
reorganize/VB
its/PRP$
drilling/NN
business/NN
into/IN
a/DT
separate/JJ
company/NN
and/CC
offer/VB
a/DT
15/CD
%/NN
to/TO
20/CD
%/NN
stake/NN
to/TO
the/DT
public/NN
./.
The/DT
American/NNP
Stock/NNP
Exchange/NNP
Market/NNP
Value/NNP
Index/NNP
rose/VBD
1.71/CD
to/TO
370.58/CD
./.
Volume/NN
totaled/VBD
11,820,000/CD
shares/NNS
./.
Imperial/NNP
Holly/NNP
fell/VBD
1/CD
5\/8/CD
to/TO
27/CD
1\/8/CD
in/IN
the/DT
wake/NN
of/IN
its/PRP$
third-quarter/JJ
earnings/NNS
report/NN
./.
Net/JJ
income/NN
was/VBD
down/RB
from/IN
a/DT
year/NN
ago/RB
,/,
when/WRB
a/DT
gain/NN
from/IN
the/DT
restructuring/NN
of/IN
a/DT
retirement/NN
plan/NN
boosted/VBD
earnigs/NNS
./.
Cilcorp/NNP
Inc./NNP
,/,
Peoria/NNP
,/,
Ill./NNP
,/,
said/VBD
it/PRP
agreed/VBD
to/TO
acquire/VB
the/DT
environmental/JJ
consulting/NN
and/CC
analytical/JJ
service/NN
businesses/NNS
of/IN
Hunter/NNP
Environmental/NNP
Services/NNP
Inc./NNP
of/IN
Southport/NNP
,/,
Conn/NNP
./.
The/DT
utility/NN
holding/VBG
company/NN
said/VBD
Hunter/NNP
will/MD
receive/VB
390,000/CD
shares/NNS
of/IN
a/DT
new/JJ
series/NN
of/IN
Cilcorp/NNP
convertible/NN
preferred/JJ
stock/NN
with/IN
a/DT
face/NN
value/NN
of/IN
$/$
39/CD
million/CD
for/IN
the/DT
businesses/NNS
./.
Cilcorp/NNP
will/MD
also/RB
assume/VB
$/$
22/CD
million/CD
of/IN
Hunter/NNP
's/POS
existing/VBG
debt/NN
./.
As/IN
part/NN
of/IN
the/DT
agreement/NN
,/,
Cilcorp/NNP
said/VBD
it/PRP
will/MD
pay/VB
Hunter/NNP
$/$
4/CD
million/CD
in/IN
exchange/NN
for/IN
agreements/NNS
not/RB
to/TO
compete/VB
./.
Cilcorp/NN
said/VBD
the/DT
businesses/NNS
to/TO
be/VB
acquired/VBN
had/VBD
revenue/NN
of/IN
$/$
76/CD
million/CD
for/IN
the/DT
year/NN
ended/VBD
March/NNP
31/CD
./.
Separately/NNP
,/,
Cilcorp/NNP
said/VBD
it/PRP
plans/VBZ
to/TO
purchase/VB
as/RB
many/JJ
as/IN
1.4/CD
million/CD
shares/NNS
,/,
or/CC
10/CD
%/NN
of/IN
its/PRP$
common/JJ
stock/NN
outstanding/JJ
from/IN
time/NN
to/TO
time/NN
on/IN
the/DT
open/JJ
market/NN
and/CC
through/IN
privately/RB
negotiated/VBN
transactions/NNS
./.
The/DT
company/NN
,/,
which/WDT
currently/RB
has/VBZ
13.5/CD
million/CD
common/JJ
shares/NNS
outstanding/JJ
,/,
said/VBD
it/PRP
has/VBZ
no/DT
specific/NN
plans/VBZ
for/IN
the/DT
shares/NNS
./.
BUSH/NNP
AND/CC
GORBACHEV/NNP
WILL/MD
HOLD/VB
two/CD
days/NNS
of/IN
informal/JJ
talks/NNS
next/JJ
month/NN
./.
The/DT
president/NN
said/VBD
that/IN
he/PRP
and/CC
the/DT
Kremlin/NNP
leader/NN
would/MD
meet/VB
Dec./NNP
2-3/CD
aboard/IN
U.S./NNP
and/CC
Soviet/NNP
naval/JJ
vessels/NNS
in/IN
the/DT
Mediterranean/NNP
to/TO
discuss/VB
a/DT
wide/JJ
range/NN
of/IN
issues/NNS
without/IN
a/DT
formal/JJ
agenda/NN
./.
A/DT
simultaneous/JJ
announcement/NN
was/VBD
made/VBN
in/IN
Moscow/NNP
./.
Bush/NNP
said/VBD
that/IN
neither/CC
he/PRP
nor/CC
Gorbachev/NNP
expected/VBD
any/DT
``/``
substantial/JJ
decisions/NNS
or/CC
agreements/NNS
./.
''/''
The/DT
seaborne/JJ
meetings/NNS
wo/MD
n't/RB
disrupt/VB
plans/NNS
for/IN
a/DT
formal/JJ
summit/NN
next/JJ
spring/NN
or/CC
summer/NN
,/,
at/IN
which/WDT
an/DT
arms-control/NN
treaty/NN
is/VBZ
likely/JJ
to/TO
be/VB
completed/VBN
./.
The/DT
two/CD
leaders/NNS
are/VBP
expected/VBN
to/TO
discuss/VB
changes/NNS
sweeping/VBG
the/DT
East/JJ
bloc/NN
as/RB
well/RB
as/IN
human-rights/NNS
issues/NNS
,/,
regional/JJ
disputes/NNS
and/CC
economic/JJ
cooperation/NN
./.
Israel/NNP
's/POS
army/NN
lifted/VBD
a/DT
blockade/NN
around/IN
a/DT
Palestinian/JJ
town/NN
in/IN
the/DT
occupied/JJ
West/NNP
Bank/NNP
,/,
ending/VBG
a/DT
42-day/JJ
campaign/NN
of/IN
seizing/VBG
cars/NNS
,/,
furniture/NN
and/CC
other/JJ
goods/NNS
to/TO
crush/VB
a/DT
tax/NN
boycott/NN
./.
While/IN
residents/NNS
claimed/VBD
a/DT
victory/NN
,/,
military/JJ
authorities/NNS
said/VBD
they/PRP
had/VBD
confiscated/VBN
the/DT
equivalent/NN
of/IN
more/JJR
than/IN
$/$
1.5/CD
million/CD
to/TO
make/VB
up/RP
for/IN
the/DT
unpaid/JJ
taxes/NNS
./.
East/JJ
German/JJ
leader/NN
Krenz/NNP
arrived/VBD
in/IN
Moscow/NNP
for/IN
talks/NNS
today/NN
with/IN
Gorbachev/NNP
on/IN
restructuring/NN
proposals/NNS
./.
In/IN
East/NNP
Berlin/NNP
,/,
Communist/NNP
Party/NNP
officials/NNS
considered/VBD
legalizing/VBG
New/NNP
Forum/NNP
,/,
the/DT
country/NN
's/POS
largest/JJS
opposition/NN
alliance/NN
,/,
as/IN
about/RB
20,000/CD
demonstrators/NNS
staged/VBD
protests/NNS
in/IN
three/CD
cities/NNS
to/TO
press/VB
demands/NNS
for/IN
democratic/JJ
freedoms/NNS
./.
The/DT
House/NNP
approved/VBD
a/DT
permanent/JJ
smoking/NN
ban/NN
on/IN
nearly/RB
all/DT
domestic/JJ
airline/NN
routes/NNS
as/IN
part/NN
of/IN
a/DT
$/$
27.1/CD
billion/CD
transportation/NN
bill/NN
that/WDT
must/MD
still/RB
overcome/VB
budget/NN
obstacles/NNS
in/IN
Congress/NNP
./.
The/DT
chamber/NN
also/RB
sent/VBD
to/TO
Bush/NNP
a/DT
nearly/RB
$/$
67/CD
billion/CD
fiscal/JJ
1990/CD
measure/NN
that/WDT
includes/VBZ
the/DT
first/JJ
construction/NN
funds/NNS
for/IN
a/DT
space/NN
station/NN
./.
Nicaragua/NNP
's/POS
Ortega/NNP
postponed/VBD
until/IN
today/NN
a/DT
decision/NN
on/IN
whether/IN
to/TO
end/VB
a/DT
19-month-old/JJ
cease-fire/NN
in/IN
the/DT
conflict/NN
with/IN
the/DT
Contra/NNP
rebels/NNS
./.
In/IN
Washington/NNP
,/,
the/DT
Senate/NNP
voted/VBD
to/TO
condemn/VB
Ortega/NNP
's/POS
threat/NN
to/TO
cancel/VB
the/DT
truce/NN
,/,
and/CC
Bush/NNP
said/VBD
he/PRP
would/MD
review/VB
U.S./NNP
policy/NN
toward/IN
Managua/NNP
,/,
including/VBG
the/DT
possibility/NN
of/IN
renewing/VBG
military/JJ
aid/NN
to/TO
the/DT
rebels/NNS
./.
Chinese/JJ
leader/NN
Deng/NNP
told/VBD
former/JJ
President/NNP
Nixon/NNP
that/IN
the/DT
U.S./NNP
was/VBD
deeply/RB
involved/VBN
in/IN
``/``
the/DT
turmoil/NN
and/CC
counterrevolutionary/JJ
rebellion/NN
''/''
that/WDT
gripped/VBD
Beijing/NNP
last/JJ
spring/NN
./.
Nixon/NNP
,/,
on/IN
the/DT
fourth/JJ
day/NN
of/IN
a/DT
private/JJ
visit/NN
to/TO
China/NNP
,/,
said/VBD
that/DT
damage/NN
to/TO
Sino-U.S./JJ
relations/NNS
was/VBD
``/``
very/RB
great/JJ
,/,
''/''
calling/VBG
the/DT
situation/NN
``/``
the/DT
most/RBS
serious/JJ
''/''
since/IN
1972/CD
./.
Afghanistan/NNP
's/POS
troops/NNS
broke/VBD
through/IN
a/DT
guerrilla/NN
blockade/NN
on/IN
the/DT
strategic/JJ
Salang/NNP
Highway/NNP
,/,
allowing/VBG
trucks/NNS
carrying/VBG
food/NN
and/CC
other/JJ
necessities/NNS
to/TO
reach/VB
Kabul/NNP
after/IN
a/DT
missile/NN
attack/NN
on/IN
rebel/NN
strongholds/NNS
./.
The/DT
convoy/NN
of/IN
about/RB
100/CD
vehicles/NNS
was/VBD
the/DT
first/JJ
to/TO
make/VB
deliveries/NNS
to/TO
the/DT
capital/NN
in/IN
about/RB
10/CD
days/NNS
./.
Turkey/NNP
's/POS
legislature/NN
elected/VBD
Prime/NNP
Minister/NNP
Ozal/NNP
as/IN
the/DT
country/NN
's/POS
first/JJ
civilian/JJ
president/NN
since/IN
1960/CD
,/,
opening/VBG
the/DT
way/NN
for/IN
a/DT
change/NN
of/IN
government/NN
under/IN
a/DT
new/JJ
premier/NN
he/PRP
will/MD
select/VB
./.
The/DT
vote/NN
in/IN
Ankara/NNP
was/VBD
boycotted/VBN
by/IN
opposition/NN
politicians/NNS
,/,
who/WP
vowed/VBD
to/TO
oust/VB
Ozal/NNP
./.
He/PRP
begins/VBZ
his/PRP$
seven-year/JJ
term/NN
Nov./NNP
9/CD
,/,
succeeding/VBG
Kenan/NNP
Evren/NNP
./.
South/NNP
Africa/NNP
's/POS
government/NN
dismissed/VBD
demands/NNS
by/IN
right-wing/JJ
Conservatives/NNPS
,/,
the/DT
nation/NN
's/POS
main/JJ
opposition/NN
party/NN
,/,
for/IN
emergency/NN
talks/NNS
on/IN
Pretoria/NNP
's/POS
recent/JJ
tolerance/NN
of/IN
dissent/NN
./.
The/DT
government/NN
also/RB
urged/VBD
whites/NNS
to/TO
refrain/VB
from/IN
panic/NN
over/IN
growing/JJ
black/JJ
protests/NNS
,/,
such/JJ
as/IN
the/DT
massive/JJ
anti-apartheid/JJ
rally/NN
Sunday/NNP
on/IN
the/DT
outskirts/NNS
of/IN
Soweto/NNP
./.
Researchers/NNP
in/IN
Belgium/NNP
said/VBD
they/PRP
have/VBP
developed/VBN
a/DT
genetic/JJ
engineering/NN
technique/NN
for/IN
creating/VBG
hybrid/JJ
plants/NNS
for/IN
a/DT
number/NN
of/IN
crops/NNS
,/,
such/JJ
as/IN
cotton/NN
,/,
soybeans/NNS
and/CC
rice/NN
./.
The/DT
scientists/NNS
at/IN
Plant/NNP
Genetic/NNP
Systems/NNP
N.V./NNP
isolated/VBD
a/DT
gene/NN
that/WDT
could/MD
lead/VB
to/TO
a/DT
generation/NN
of/IN
plants/NNS
possessing/VBG
a/DT
high-production/JJ
trait/NN
./.
A/DT
bomb/NN
exploded/VBD
at/IN
a/DT
leftist/JJ
union/NN
hall/NN
in/IN
San/NNP
Salvador/NNP
,/,
killing/VBG
at/IN
least/JJS
eight/CD
people/NNS
and/CC
injuring/VBG
about/RB
30/CD
others/NNS
,/,
including/VBG
two/CD
Americans/NNPS
,/,
authorities/NNS
said/VBD
./.
The/DT
blast/NN
,/,
which/WDT
wrecked/VBD
the/DT
opposition/NN
labor/NN
group/NN
's/POS
offices/NNS
,/,
was/VBD
the/DT
latest/JJS
in/IN
a/DT
series/NN
of/IN
attacks/NNS
in/IN
El/NNP
Salvador/NNP
's/POS
10-year-old/JJ
civil/JJ
war/NN
./.
Hungary/NNP
's/POS
Parliament/NNP
voted/VBD
to/TO
hold/VB
a/DT
national/JJ
referendum/NN
on/IN
an/DT
election/NN
to/TO
fill/VB
the/DT
new/JJ
post/NN
of/IN
president/NN
./.
The/DT
balloting/NN
to/TO
decide/VB
when/WRB
and/CC
how/WRB
to/TO
fill/VB
the/DT
position/NN
,/,
which/WDT
replaces/VBZ
a/DT
collective/JJ
presidency/NN
under/IN
a/DT
pact/NN
signed/VBN
by/IN
the/DT
ruling/VBG
Socialists/NNPS
and/CC
opposition/NN
groups/NNS
,/,
is/VBZ
to/TO
be/VB
held/VBN
Nov/NNP
./.
The/DT
State/NNP
Department/NNP
denied/VBD
asylum/NN
to/TO
a/DT
Vietnamese/JJ
man/NN
who/WP
escaped/VBD
from/IN
his/PRP$
homeland/NN
by/IN
lashing/VBG
himself/PRP
to/TO
the/DT
rudder/NN
housing/NN
of/IN
a/DT
tanker/NN
for/IN
two/CD
days/NNS
in/IN
monsoon/NN
seas/NNS
./.
A/DT
spokesman/NN
for/IN
Democratic/JJ
Sen./NNP
Pell/NNP
of/IN
Rhode/NNP
Island/NNP
said/VBD
,/,
however/RB
,/,
that/IN
the/DT
Immigration/NNP
and/CC
Naturalization/NNP
Service/NNP
would/MD
review/VB
the/DT
stowaway/NN
's/POS
request/NN
./.
Ogden/NNP
Projects/NNPS
Inc./NNP
said/VBD
net/JJ
income/NN
jumped/VBD
to/TO
$/$
6.6/CD
million/CD
,/,
or/CC
18/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
third/JJ
quarter/NN
./.
The/DT
Fairfield/NNP
,/,
N.J./NNP
,/,
company/NN
,/,
which/WDT
is/VBZ
92%-owned/JJ
by/IN
Ogden/NNP
Corp./NNP
,/,
New/NNP
York/NNP
,/,
had/VBD
net/NN
of/IN
$/$
1.1/CD
million/CD
,/,
or/CC
four/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
ago/RB
./.
Revenue/NN
soared/VBD
to/TO
$/$
101.7/CD
million/CD
from/IN
$/$
39.5/CD
million/CD
./.
Ogden/NNP
Projects/NNPS
,/,
whose/WP$
shares/NNS
began/VBD
trading/VBG
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
in/IN
August/NNP
,/,
closed/VBD
yesterday/NN
at/IN
$/$
26.875/CD
,/,
down/RB
75/CD
cents/NNS
./.
The/DT
stock/NN
began/VBD
trading/VBG
this/DT
summer/NN
at/IN
$/$
14/CD
apiece/RB
./.
Ogden/NNP
Projects/NNPS
,/,
which/WDT
has/VBZ
interests/NNS
in/IN
solid-waste/NN
recovery/NN
and/CC
hazardous-waste/NN
cleanup/NN
,/,
said/VBD
it/PRP
has/VBZ
13/CD
facilities/NNS
in/IN
operation/NN
,/,
up/RB
from/IN
seven/CD
a/DT
year/NN
ago/RB
./.
Meanwhile/RB
,/,
Ogden/NNP
Corp./NNP
,/,
which/WDT
also/RB
has/VBZ
interests/NNS
in/IN
building/NN
maintenance/NN
and/CC
management/NN
,/,
reported/VBD
third-quarter/JJ
net/JJ
income/NN
of/IN
$/$
27.1/CD
million/CD
,/,
or/CC
67/CD
cents/NNS
a/DT
share/NN
,/,
more/JJR
than/IN
twice/RB
the/DT
$/$
13.5/CD
million/CD
,/,
or/CC
34/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Revenue/NN
rose/VBD
33/CD
%/NN
to/TO
$/$
378.1/CD
million/CD
from/IN
$/$
283.8/CD
million/CD
./.
Under/IN
attack/NN
by/IN
its/PRP$
own/JJ
listed/JJ
companies/NNS
and/CC
powerful/JJ
floor/NN
traders/NNS
,/,
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
is/VBZ
considering/VBG
reinstituting/VBG
a/DT
``/``
collar/NN
''/''
on/IN
program/NN
trading/NN
that/WDT
it/PRP
abandoned/VBD
last/JJ
year/NN
,/,
according/VBG
to/TO
people/NNS
familiar/JJ
with/IN
the/DT
Big/NNP
Board/NNP
./.
The/DT
exchange/NN
also/RB
may/MD
step/VB
up/RP
its/PRP$
disclosure/NN
of/IN
firms/NNS
engaged/VBN
in/IN
program/NN
trading/NN
,/,
these/DT
people/NNS
said/VBD
./.
Big/NNP
Board/NNP
officials/NNS
would/MD
n't/RB
comment/VB
publicly/RB
./.
But/CC
in/IN
an/DT
interview/NN
in/IN
which/WDT
he/PRP
called/VBD
the/DT
stock/NN
market/NN
's/POS
volatility/NN
a/DT
``/``
national/JJ
problem/NN
,/,
''/''
Big/NNP
Board/NNP
Chairman/NNP
John/NNP
J./NNP
Phelan/NNP
Jr./NNP
said/VBD
,/,
``/``
We/PRP
are/VBP
going/VBG
to/TO
try/VB
to/TO
do/VB
some/DT
things/NNS
in/IN
the/DT
short/JJ
intermediate/JJ
term/NN
''/''
to/TO
help/VB
the/DT
situation/NN
./.
Mr./NNP
Phelan/NNP
has/VBZ
been/VBN
viewed/VBN
by/IN
many/JJ
exchange/NN
members/NNS
as/IN
being/VBG
indifferent/JJ
to/TO
stock-price/JJ
swings/NNS
caused/VBN
by/IN
program/NN
trades/NNS
./.
He/PRP
said/VBD
he/PRP
is/VBZ
``/``
very/RB
surprised/JJ
''/''
by/IN
the/DT
furor/NN
over/IN
program/NN
trading/NN
and/CC
the/DT
exchange/NN
's/POS
role/NN
in/IN
it/PRP
that/WDT
has/VBZ
raged/VBN
in/IN
recent/JJ
days/NNS
./.
Mr./NNP
Phelan/NNP
said/VBD
that/IN
the/DT
Big/NNP
Board/NNP
has/VBZ
been/VBN
trying/VBG
to/TO
deal/VB
quietly/RB
with/IN
the/DT
issue/NN
,/,
but/CC
that/IN
banning/VBG
computer-assisted/JJ
trading/NN
strategies/NNS
entirely/RB
,/,
as/IN
some/DT
investors/NNS
want/VBP
,/,
would/MD
be/VB
like/IN
``/``
taking/VBG
everybody/NN
out/IN
of/IN
an/DT
automobile/NN
and/CC
making/VBG
them/PRP
ride/VB
a/DT
horse/NN
./.
''/''
The/DT
exchange/NN
has/VBZ
a/DT
board/NN
meeting/NN
scheduled/VBN
for/IN
tomorrow/NN
,/,
and/CC
it/PRP
is/VBZ
expected/VBN
that/IN
some/DT
public/JJ
announcement/NN
could/MD
be/VB
made/VBN
after/IN
that/DT
./.
Big/NNP
Board/NNP
officials/NNS
have/VBP
been/VBN
under/IN
seige/NN
from/IN
both/DT
investors/NNS
and/CC
the/DT
exchange/NN
's/POS
own/JJ
floor/NN
traders/NNS
since/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
's/POS
190-point/JJ
tumble/NN
on/IN
Oct./NNP
13/CD
./.
Mr./NNP
Phelan/NNP
has/VBZ
n't/RB
been/VBN
making/VBG
public/JJ
remarks/NNS
in/IN
recent/JJ
days/NNS
,/,
and/CC
many/JJ
people/NNS
have/VBP
urged/VBN
him/PRP
to/TO
take/VB
more/JJR
of/IN
a/DT
leadership/NN
role/NN
on/IN
the/DT
program/NN
trading/NN
issue/NN
./.
What/WP
the/DT
Big/NNP
Board/NNP
is/VBZ
considering/VBG
is/VBZ
re-establishing/VBG
a/DT
``/``
collar/NN
''/''
on/IN
program/NN
trading/NN
when/WRB
the/DT
market/NN
moves/VBZ
significantly/RB
./.
Early/RB
last/JJ
year/NN
,/,
after/IN
a/DT
140-point/JJ
,/,
one-day/JJ
drop/NN
in/IN
the/DT
Dow/NNP
,/,
the/DT
Big/NNP
Board/NNP
instituted/VBD
the/DT
collar/NN
,/,
which/WDT
banned/VBD
program/NN
trading/NN
through/IN
the/DT
Big/NNP
Board/NNP
's/POS
computers/NNS
whenever/WRB
the/DT
Dow/NNP
moved/VBD
50/CD
points/NNS
up/RB
or/CC
down/RB
in/IN
a/DT
day/NN
./.
It/PRP
did/VBD
n't/RB
work/VB
./.
``/``
The/DT
collar/NN
was/VBD
penetrated/VBN
on/IN
a/DT
number/NN
of/IN
occasions/NNS
,/,
''/''
meaning/VBG
securities/NNS
firms/NNS
figured/VBD
out/RP
ways/NNS
to/TO
conduct/VB
program/NN
trades/NNS
to/TO
circumvent/VB
the/DT
collar/NN
and/CC
use/VB
the/DT
Big/NNP
Board/NNP
's/POS
electronic/JJ
trading/NN
system/NN
,/,
Mr./NNP
Phelan/NNP
said/VBD
./.
That/DT
was/VBD
when/WRB
the/DT
exchange/NN
took/VBD
a/DT
new/JJ
tack/NN
by/IN
publishing/VBG
monthly/JJ
statistics/NNS
listing/VBG
the/DT
top/JJ
15/CD
program/NN
trading/NN
firms/NNS
./.
Exchange/NN
officials/NNS
emphasized/VBD
that/IN
the/DT
Big/NNP
Board/NNP
is/VBZ
considering/VBG
a/DT
variety/NN
of/IN
actions/NNS
to/TO
deal/VB
with/IN
program/NN
trading/NN
./.
People/NNS
familiar/JJ
with/IN
the/DT
exchange/NN
said/VBD
another/DT
idea/NN
likely/RB
to/TO
be/VB
approved/VBN
is/VBZ
expanding/VBG
the/DT
monthly/JJ
reports/NNS
on/IN
program/NN
trading/NN
to/TO
cover/VB
specific/JJ
days/NNS
or/CC
even/RB
hours/NNS
of/IN
heavy/JJ
program/NN
trading/JJ
and/CC
who/WP
was/VBD
doing/VBG
it/PRP
./.
Meanwhile/RB
,/,
another/DT
big/JJ
Wall/NNP
Street/NNP
brokerage/NN
firm/NN
joined/VBD
others/NNS
that/WDT
have/VBP
been/VBN
pulling/VBG
back/RP
from/IN
program/NN
trading/NN
./.
American/NNP
Express/NNP
Co./NNP
's/POS
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
unit/NN
said/VBD
it/PRP
ceased/VBD
all/DT
index-arbitrage/NN
program/NN
trading/NN
for/IN
client/NN
accounts/NNS
./.
In/IN
stock-index/NN
arbitrage/NN
,/,
traders/NNS
buy/VBP
and/CC
sell/VBP
large/JJ
amounts/NNS
of/IN
stock/NN
with/IN
offsetting/VBG
trades/NNS
in/IN
stock-index/NN
futures/NNS
to/TO
profit/VB
from/IN
fleeting/JJ
price/NN
discrepancies/NNS
between/IN
the/DT
two/CD
markets/NNS
./.
Shearson/NNP
,/,
which/WDT
in/IN
September/NNP
was/VBD
the/DT
11th-biggest/JJ
program/NN
trader/NN
on/IN
the/DT
Big/NNP
Board/NNP
,/,
had/VBD
already/RB
suspended/VBN
stock-index/NN
arbitrage/NN
for/IN
its/PRP$
own/JJ
account/NN
./.
Also/RB
,/,
CS/NNP
First/NNP
Boston/NNP
Inc./NNP
's/POS
First/NNP
Boston/NNP
Corp./NNP
unit/NN
,/,
the/DT
fifth-biggest/JJ
program/NN
trader/NN
in/IN
September/NNP
,/,
is/VBZ
``/``
preparing/VBG
a/DT
response/NN
''/''
to/TO
the/DT
program-trading/NN
outcry/NN
,/,
officials/NNS
of/IN
the/DT
firm/NN
said/VBD
./.
First/RB
Boston/NNP
is/VBZ
one/CD
of/IN
the/DT
few/JJ
major/JJ
Wall/NNP
Street/NNP
firms/NNS
that/WDT
have/VBP
n't/RB
pulled/VBN
back/RP
from/IN
program/NN
trading/NN
in/IN
recent/JJ
days/NNS
./.
Mr./NNP
Phelan/NNP
is/VBZ
an/DT
adroit/JJ
diplomat/NN
who/WP
normally/RB
appears/VBZ
to/TO
be/VB
solidly/RB
in/IN
control/NN
of/IN
the/DT
Big/NNP
Board/NNP
's/POS
factions/NNS
./.
But/CC
he/PRP
has/VBZ
been/VBN
getting/VBG
heat/NN
from/IN
all/DT
sides/NNS
over/IN
program/NN
trading/NN
./.
Mr./NNP
Phelan/NNP
's/POS
recent/JJ
remarks/NNS
that/IN
investors/NNS
simply/RB
must/MD
get/VB
used/VBN
to/TO
the/DT
stock-market/NN
volatility/NN
from/IN
program/NN
trading/NN
have/VBP
drawn/VBN
criticism/NN
from/IN
both/CC
the/DT
exchange/NN
's/POS
stock/NN
specialists/NNS
,/,
who/WP
make/VBP
markets/NNS
in/IN
individual/JJ
stocks/NNS
,/,
and/CC
from/IN
many/JJ
companies/NNS
that/WDT
have/VBP
shares/NNS
listed/VBN
on/IN
the/DT
Big/NNP
Board/NNP
./.
Mr./NNP
Phelan/NNP
said/VBD
that/IN
his/PRP$
predicting/VBG
continued/JJ
volatility/NN
is/VBZ
just/RB
``/``
how/WRB
the/DT
world/NN
is/VBZ
./.
If/IN
bringing/VBG
the/DT
message/NN
is/VBZ
a/DT
crime/NN
,/,
I/PRP
'm/VBP
guilty/JJ
of/IN
it/PRP
./.
''/''
But/CC
he/PRP
said/VBD
this/DT
does/VBZ
n't/RB
mean/VB
he/PRP
is/VBZ
satisfied/JJ
with/IN
the/DT
market/NN
's/POS
big/JJ
swings/NNS
./.
``/``
We/PRP
're/VBP
trying/VBG
to/TO
take/VB
care/NN
of/IN
a/DT
heck/NN
of/IN
a/DT
lot/NN
of/IN
constituents/NNS
,/,
''/''
Mr./NNP
Phelan/NNP
said/VBD
./.
``/``
Each/DT
one/NN
has/VBZ
a/DT
different/JJ
agenda/NN
./.
''/''
For/IN
example/NN
,/,
in/IN
a/DT
special/JJ
meeting/NN
Monday/NNP
with/IN
Mr./NNP
Phelan/NNP
,/,
senior/JJ
officials/NNS
of/IN
some/DT
of/IN
the/DT
Big/NNP
Board/NNP
's/POS
49/CD
stock/NN
specialist/NN
firms/NNS
complained/VBD
that/IN
the/DT
exchange/NN
is/VBZ
no/DT
longer/RBR
representing/VBG
their/PRP$
interests/NNS
./.
``/``
We/PRP
are/VBP
looking/VBG
for/IN
representation/NN
we/PRP
have/VBP
n't/RB
had/VBD
,/,
''/''
a/DT
specialist/NN
said/VBD
./.
``/``
We/PRP
've/VB
had/VBD
dictation/NN
./.
''/''
After/IN
another/DT
session/NN
Mr./NNP
Phelan/NNP
held/VBD
yesterday/NN
with/IN
major/JJ
brokerage/NN
firms/NNS
such/JJ
as/IN
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
,/,
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
,/,
PaineWebber/NNP
Group/NNP
Inc./NNP
and/CC
First/NNP
Boston/NNP
--/:
all/DT
of/IN
which/WDT
have/VBP
engaged/VBN
in/IN
program/NN
trading/NN
--/:
an/DT
executive/NN
of/IN
a/DT
top/JJ
brokerage/NN
firm/NN
said/VBD
,/,
``/``
Clearly/RB
,/,
the/DT
firms/NNS
want/VBP
the/DT
exchange/NN
to/TO
take/VB
leadership/NN
./.
''/''
Many/JJ
specialist/JJ
firms/NNS
resent/VBP
the/DT
Big/NNP
Board/NNP
's/POS
new/JJ
``/``
basket/NN
''/''
product/NN
that/WDT
allows/VBZ
institutions/NNS
to/TO
buy/VB
or/CC
sell/VB
all/DT
stocks/NNS
in/IN
the/DT
Standard/NNP
&/CC
Poor/NNP
's/POS
500-stock/JJ
index/NN
in/IN
one/CD
shot/NN
./.
Ultimately/RB
,/,
the/DT
specialists/NNS
view/VBP
this/DT
as/IN
yet/RB
another/DT
step/NN
toward/IN
electronic/JJ
trading/NN
that/WDT
could/MD
eventually/RB
destroy/VB
their/PRP$
franchise/NN
./.
``/``
His/PRP$
Phelan/NN
's/POS
own/JJ
interests/NNS
are/VBP
in/IN
building/VBG
an/DT
electronic/JJ
marketplace/NN
,/,
''/''
said/VBD
a/DT
market/NN
maker/NN
./.
The/DT
basket/NN
product/NN
,/,
while/IN
it/PRP
has/VBZ
got/VBD
off/IN
to/TO
a/DT
slow/JJ
start/NN
,/,
is/VBZ
being/VBG
supported/VBN
by/IN
some/DT
big/JJ
brokerage/NN
firms/NNS
--/:
another/DT
member/NN
of/IN
Mr./NNP
Phelan/NNP
's/POS
splintered/JJ
constituency/NN
./.
Mr./NNP
Phelan/NNP
has/VBZ
had/VBD
difficulty/NN
convincing/VBG
the/DT
public/NN
that/IN
the/DT
Big/NNP
Board/NNP
is/VBZ
serious/JJ
about/IN
curbing/VBG
volatility/NN
,/,
especially/RB
as/IN
the/DT
exchange/NN
clearly/RB
relishes/VBZ
its/PRP$
role/NN
as/IN
the/DT
home/NN
for/IN
$/$
200/CD
billion/CD
in/IN
stock-index/NN
funds/NNS
,/,
which/WDT
buy/VBP
huge/JJ
baskets/NNS
of/IN
stocks/NNS
to/TO
mimic/VB
popular/JJ
stock-market/NN
indexes/NNS
like/IN
the/DT
Standard/NNP
&/CC
Poor/NNP
's/POS
500/CD
,/,
and/CC
which/WDT
sometimes/RB
employ/VBP
program/NN
trading/NN
./.
The/DT
Big/NNP
Board/NNP
wants/VBZ
to/TO
keep/VB
such/JJ
index/NN
funds/NNS
from/IN
fleeing/VBG
to/TO
overseas/JJ
markets/NNS
,/,
but/CC
only/RB
as/RB
long/RB
as/IN
it/PRP
``/``
handles/VBZ
it/PRP
intelligently/RB
,/,
''/''
Mr./NNP
Phelan/NNP
said/VBD
./.
Despite/IN
what/WP
some/DT
investors/NNS
are/VBP
suggesting/VBG
,/,
the/DT
Big/NNP
Board/NNP
is/VBZ
n't/RB
even/RB
considering/VBG
a/DT
total/JJ
ban/NN
on/IN
program/NN
trading/NN
or/CC
stock/NN
futures/NNS
,/,
exchange/NN
officials/NNS
said/VBD
./.
Most/JJS
revisions/NNS
it/PRP
will/MD
propose/VB
will/MD
be/VB
geared/VBN
toward/IN
slowing/VBG
down/RP
program/NN
trading/NN
during/IN
stressful/JJ
periods/NNS
,/,
said/VBD
officials/NNS
working/VBG
with/IN
the/DT
exchange/NN
./.
Computers/NNS
have/VBP
made/VBN
trading/NN
more/RBR
rapid/JJ
,/,
but/CC
that/DT
can/MD
be/VB
fixed/VBN
with/IN
some/DT
fine-tuning/NN
./.
``/``
I/PRP
think/VBP
if/IN
you/PRP
can/MD
}/)
speed/VB
things/NNS
up/RP
,/,
you/PRP
can/MD
slow/VB
them/PRP
down/RP
,/,
''/''
Mr./NNP
Phelan/NNP
said/VBD
./.
``/``
That/DT
's/VBZ
different/JJ
than/IN
wrecking/VBG
them/PRP
./.
''/''
While/IN
volatility/NN
wo/MD
n't/RB
go/VB
away/RB
,/,
he/PRP
said/VBD
,/,
``/``
Volatility/NN
is/VBZ
greater/JJR
than/IN
program/NN
trading/NN
./.
What/WP
I/PRP
'm/VBP
trying/VBG
to/TO
say/VB
to/TO
people/NNS
is/VBZ
,/,
it/PRP
's/VBZ
proper/JJ
to/TO
worry/VB
about/IN
program/NN
trading/NN
,/,
but/CC
it/PRP
's/VBZ
only/RB
a/DT
piece/NN
of/IN
the/DT
business/NN
./.
''/''
For/IN
example/NN
,/,
Mr./NNP
Phelan/NNP
said/VBD
that/IN
big/JJ
institutions/NNS
have/VBP
so/RB
much/JJ
control/NN
over/IN
public/JJ
investments/NNS
that/IN
they/PRP
can/MD
cause/VB
big/JJ
swings/NNS
in/IN
the/DT
market/NN
,/,
regardless/RB
of/IN
index/NN
arbitrage/NN
./.
``/``
A/DT
lot/NN
of/IN
people/NNS
would/MD
like/VB
to/TO
go/VB
back/RB
to/TO
1970/CD
,/,
''/''
before/IN
program/NN
trading/NN
,/,
he/PRP
said/VBD
./.
``/``
I/PRP
would/MD
like/VB
to/TO
go/VB
back/RB
to/TO
1970/CD
./.
But/CC
we/PRP
're/VBP
not/RB
going/VBG
back/RB
to/TO
1970/CD
./.
''/''
Indeed/RB
,/,
Mr./NNP
Phelan/NNP
said/VBD
that/IN
if/IN
stock-market/NN
volatility/NN
persists/VBZ
,/,
the/DT
U.S./NNP
may/MD
lose/VB
its/PRP$
edge/NN
as/IN
being/VBG
the/DT
best/JJS
place/NN
to/TO
raise/VB
capital/NN
./.
``/``
Japan/NNP
's/POS
markets/NNS
are/VBP
more/RBR
stable/JJ
,/,
''/''
he/PRP
said/VBD
./.
``/``
If/IN
that/DT
continues/VBZ
,/,
a/DT
significant/JJ
number/NN
of/IN
{/(
U.S/NNP
./.
companies/NNS
will/MD
go/VB
over/IN
there/RB
to/TO
raise/VB
money/NN
./.
''/''
In/IN
coming/JJ
days/NNS
,/,
when/WRB
the/DT
Big/NNP
Board/NNP
formulates/VBZ
its/PRP$
responses/NNS
to/TO
the/DT
program-trading/NN
problem/NN
,/,
Mr./NNP
Phelan/NNP
may/MD
take/VB
a/DT
more/RBR
public/JJ
role/NN
in/IN
the/DT
issue/NN
./.
Lewis/NNP
L./NNP
Glucksman/NNP
,/,
vice/NN
chairman/NN
of/IN
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
&/CC
Co./NNP
,/,
said/VBD
:/:
``/``
This/DT
is/VBZ
a/DT
problem/NN
that/WDT
's/VBZ
taking/VBG
on/RP
a/DT
life/NN
of/IN
its/PRP$
own/JJ
./.
The/DT
program/NN
trading/NN
situation/NN
seems/VBZ
to/TO
have/VB
driven/VBN
individual/JJ
investors/NNS
as/RB
well/RB
as/IN
others/NNS
out/IN
of/IN
the/DT
market/NN
,/,
and/CC
even/RB
Europeans/NNPS
are/VBP
suspicious/JJ
./.
The/DT
exchange/NN
should/MD
take/VB
a/DT
pro-active/JJ
position/NN
./.
''/''
For/IN
now/RB
,/,
however/RB
,/,
Mr./NNP
Phelan/NNP
said/VBD
:/:
``/``
I/PRP
refuse/VBP
to/TO
get/VB
out/RB
there/RB
and/CC
tell/VB
everybody/NN
everything/NN
is/VBZ
hunky-dory/JJ
./.
We/PRP
have/VBP
a/DT
major/JJ
problem/NN
,/,
and/CC
that/DT
problem/NN
is/VBZ
volatility/NN
./.
''/''
Craig/NNP
Torres/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
A/DT
NEW/JJ
MINIMUM-WAGE/NN
PLAN/NN
has/VBZ
been/VBN
worked/VBN
out/RP
by/IN
Congress/NNP
and/CC
Bush/NNP
,/,
opening/VBG
the/DT
way/NN
for/IN
the/DT
first/JJ
increase/NN
in/IN
over/IN
nine/CD
years/NNS
./.
The/DT
compromise/NN
proposal/NN
,/,
ending/VBG
a/DT
long/JJ
impasse/NN
between/IN
Democrats/NNPS
and/CC
the/DT
president/NN
,/,
would/MD
boost/VB
the/DT
minimum/JJ
wage/NN
to/TO
$/$
4.25/CD
an/DT
hour/NN
by/IN
April/NNP
1991/CD
from/IN
$/$
3.35/CD
now/RB
./.
The/DT
legislation/NN
also/RB
includes/VBZ
a/DT
lower/JJR
``/``
training/NN
wage/NN
''/''
for/IN
new/JJ
workers/NNS
who/WP
are/VBP
teen-agers/NNS
./.
The/DT
Big/NNP
Board/NNP
is/VBZ
considering/VBG
reviving/VBG
a/DT
curb/NN
on/IN
program/NN
trading/NN
when/WRB
the/DT
market/NN
is/VBZ
volatile/JJ
./.
The/DT
exchange/NN
,/,
which/WDT
abandoned/VBD
such/PDT
a/DT
``/``
collar/NN
''/''
last/JJ
year/NN
because/IN
it/PRP
did/VBD
n't/RB
prevent/VB
sharp/JJ
price/NN
swings/NNS
,/,
has/VBZ
been/VBN
under/IN
attack/NN
recently/RB
for/IN
not/RB
taking/VBG
action/NN
against/IN
program/NN
trading/NN
./.
Great/NNP
Northern/NNP
Nekoosa/NNP
reacted/VBD
coolly/RB
to/TO
Georgia-Pacific/NNP
's/POS
takeover/NN
bid/NN
of/IN
$/$
58/CD
a/DT
share/NN
,/,
or/CC
$/$
3.19/CD
billion/CD
,/,
though/IN
the/DT
suitor/NN
said/VBD
all/DT
terms/NNS
are/VBP
negotiable/JJ
./.
Great/NNP
Northern/NNP
's/POS
stock/NN
soared/VBD
$/$
20.125/CD
,/,
to/TO
$/$
62.875/CD
,/,
on/IN
speculation/NN
that/IN
a/DT
higher/JJR
bid/NN
would/MD
emerge/VB
./.
Stock/NN
prices/NNS
rallied/VBD
as/IN
the/DT
Georgia-Pacific/NNP
bid/NN
broke/VBD
the/DT
market/NN
's/POS
recent/JJ
gloom/NN
./.
The/DT
Dow/NNP
Jones/NNP
industrials/NNS
finished/VBD
up/RB
41.60/CD
,/,
at/IN
2645.08/CD
./.
The/DT
dollar/NN
and/CC
bond/NN
prices/NNS
also/RB
closed/VBD
higher/JJR
./.
Leading/JJ
indicators/NNS
rose/VBD
a/DT
slight/JJ
0.2/CD
%/NN
in/IN
September/NNP
,/,
a/DT
further/JJ
indication/NN
the/DT
economy/NN
is/VBZ
slowing/VBG
but/CC
without/IN
any/DT
clear/JJ
sign/NN
of/IN
whether/IN
a/DT
recession/NN
looms/VBZ
./.
Meanwhile/RB
,/,
new-home/JJ
sales/NNS
plunged/VBD
14/CD
%/NN
in/IN
the/DT
month/NN
./.
Labor/NN
costs/NNS
climbed/VBD
1.2/CD
%/NN
in/IN
private/JJ
industry/NN
during/IN
the/DT
third/JJ
quarter/NN
,/,
matching/VBG
the/DT
second-quarter/JJ
rise/NN
./.
Health-insurance/NN
costs/NNS
soared/VBD
./.
Time/NN
Warner/NNP
and/CC
Sony/NNP
could/MD
end/VB
up/RP
becoming/VBG
partners/NNS
in/IN
several/JJ
business/NN
ventures/NNS
as/IN
part/NN
of/IN
a/DT
settlement/NN
of/IN
their/PRP$
dispute/NN
over/IN
Hollywood/NNP
producers/NNS
Peter/NNP
Guber/NNP
and/CC
Jon/NNP
Peters/NNP
./.
A/DT
bidding/NN
war/NN
for/IN
Jaguar/NN
became/VBD
more/RBR
likely/JJ
as/IN
Britain/NNP
unexpectedly/RB
decided/VBD
to/TO
end/VB
restrictions/NNS
blocking/VBG
a/DT
takeover/NN
of/IN
the/DT
luxury/NN
car/NN
maker/NN
./.
Sea/NNP
Containers/NNPS
plans/VBZ
to/TO
sell/VB
$/$
1.1/CD
billion/CD
of/IN
assets/NNS
and/CC
use/VB
some/DT
of/IN
the/DT
proceeds/NNS
to/TO
buy/VB
about/RB
50/CD
%/NN
of/IN
its/PRP$
common/JJ
shares/NNS
for/IN
$/$
70/CD
each/DT
./.
The/DT
company/NN
is/VBZ
trying/VBG
to/TO
fend/VB
off/RP
a/DT
hostile/JJ
bid/NN
by/IN
two/CD
European/JJ
shipping/NN
firms/NNS
./.
Eastern/NNP
Airlines/NNP
pilots/NNS
were/VBD
awarded/VBN
between/IN
$/$
60/CD
million/CD
and/CC
$/$
100/CD
million/CD
in/IN
back/JJ
pay/NN
by/IN
an/DT
arbitrator/NN
,/,
a/DT
decision/NN
that/WDT
could/MD
complicate/VB
the/DT
carrier/NN
's/POS
bankruptcy/NN
reorganization/NN
./.
LTV/NNP
Steel/NNP
is/VBZ
boosting/VBG
prices/NNS
of/IN
flat/JJ
rolled/VBN
steel/NN
products/NNS
an/DT
average/JJ
3/CD
%/NN
,/,
but/CC
it/PRP
's/VBZ
unclear/JJ
whether/IN
the/DT
increases/NNS
,/,
set/VBN
for/IN
Jan./NNP
1/CD
,/,
1990/CD
,/,
will/MD
stick/VB
./.
Southern/NNP
's/POS
Gulf/NNP
Power/NNP
unit/NN
paid/VBD
$/$
500,000/CD
in/IN
fines/NNS
after/IN
pleading/VBG
guilty/JJ
to/TO
conspiracy/NN
to/TO
make/VB
illegal/JJ
political/JJ
contributions/NNS
and/CC
tax/NN
evasion/NN
./.
More/JJR
big/JJ
Japanese/NNP
investors/NNS
are/VBP
buying/VBG
U.S./NNP
mortgage-backed/JJ
securities/NNS
,/,
reversing/VBG
a/DT
recent/JJ
trend/NN
./.
USX/NNP
's/POS
profit/NN
dropped/VBD
23/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
as/IN
improved/JJ
oil/NN
results/NNS
failed/VBD
to/TO
offset/VB
weakness/NN
in/IN
the/DT
firm/NN
's/POS
steel/NN
and/CC
natural/JJ
gas/NN
operations/NNS
./.
Miniscribe/NNP
reported/VBD
a/DT
negative/JJ
net/JJ
worth/NN
and/CC
hinted/VBD
it/PRP
may/MD
file/VB
for/IN
Chapter/NNP
11/NNP
./.
The/DT
disk-drive/NN
maker/NN
disclosed/VBD
a/DT
major/JJ
fraud/NN
two/CD
months/NNS
ago/RB
./.
Markets/NNS
--/:
Stocks/NNS
:/:
Volume/NN
176,100,000/CD
shares/NNS
./.
Dow/NNP
Jones/NNP
industrials/NNS
2645.08/CD
,/,
up/IN
41.60/CD
;/:
transportation/NN
1205.01/CD
,/,
up/RB
13.15/CD
;/:
utilities/NNS
219.19/CD
,/,
up/RB
2.45/CD
./.
Bonds/NNS
:/:
Shearson/NNP
Lehman/NNP
Hutton/NNP
Treasury/NNP
index/NN
3426.33/CD
,/,
up/RB
Commodities/NNS
:/:
Dow/NNP
Jones/NNP
futures/NNS
index/NN
129.63/CD
,/,
up/RB
0.25/CD
;/:
spot/NN
index/NN
129.84/CD
,/,
off/RB
0.25/CD
./.
Dollar/NN
:/:
142.85/CD
yen/NNS
,/,
up/IN
0.95/CD
;/:
1.8415/CD
marks/NNS
,/,
up/IN
0.0075/CD
./.
Bond/NN
prices/NNS
staggered/VBD
in/IN
seesaw/JJ
trading/NN
,/,
rising/VBG
on/IN
reports/NNS
of/IN
economic/JJ
weakness/NN
and/CC
falling/VBG
on/IN
reports/NNS
of/IN
economic/JJ
strength/NN
./.
Treasury/NNP
bonds/NNS
got/VBD
off/IN
to/TO
a/DT
strong/JJ
start/NN
,/,
advancing/VBG
modestly/RB
during/IN
overnight/JJ
trading/NN
on/IN
foreign/JJ
markets/NNS
./.
``/``
We/PRP
saw/VBD
good/JJ
buying/NN
in/IN
Japan/NNP
and/CC
excellent/JJ
buying/NN
in/IN
London/NNP
,/,
''/''
said/VBD
Jay/NNP
Goldinger/NNP
,/,
market/NN
strategist/NN
and/CC
trader/NN
at/IN
Capital/NNP
Insight/NNP
Inc./NNP
,/,
Beverly/NNP
Hills/NNP
,/,
Calif/NNP
./.
The/DT
market/NN
's/POS
tempo/NN
was/VBD
helped/VBN
by/IN
the/DT
dollar/NN
's/POS
resiliency/NN
,/,
he/PRP
said/VBD
./.
Late/RB
in/IN
London/NNP
,/,
the/DT
dollar/NN
was/VBD
quoted/VBN
at/IN
1.8410/CD
West/JJ
German/JJ
marks/NNS
and/CC
142.70/CD
Japanese/JJ
yen/NNS
,/,
up/RB
from/IN
late/JJ
Monday/NNP
in/IN
New/NNP
York/NNP
./.
British/JJ
sterling/NN
eased/VBD
to/TO
$/$
1.5775/CD
from/IN
$/$
1.5825/CD
./.
When/WRB
U.S./NNP
trading/NN
began/VBD
,/,
Treasury/NNP
bonds/NNS
received/VBD
an/DT
additional/JJ
boost/NN
from/IN
news/NN
that/IN
sales/NNS
of/IN
new/JJ
single-family/JJ
homes/NNS
fell/VBD
14/CD
%/NN
in/IN
September/NNP
./.
The/DT
contraction/NN
was/VBD
twice/RB
as/RB
large/JJ
as/IN
economists/NNS
projected/VBD
and/CC
was/VBD
the/DT
sharpest/JJS
decline/NN
since/IN
a/DT
19/CD
%/NN
drop/NN
in/IN
January/NNP
1982/CD
./.
Economists/NNS
said/VBD
the/DT
report/NN
raised/VBD
speculation/NN
that/IN
the/DT
economic/JJ
slowdown/NN
could/MD
turn/VB
into/IN
a/DT
recession/NN
,/,
which/WDT
would/MD
pave/VB
the/DT
way/NN
for/IN
the/DT
Federal/NNP
Reserve/NNP
to/TO
lower/VB
interest/NN
rates/NNS
./.
But/CC
later/RBR
in/IN
the/DT
day/NN
,/,
a/DT
report/NN
by/IN
the/DT
Purchasing/NNP
Management/NNP
Association/NNP
of/IN
Chicago/NNP
cast/VBD
doubt/NN
on/IN
the/DT
recession/NN
scenario/NN
./.
The/DT
association/NN
said/VBD
its/PRP$
October/NNP
index/NN
of/IN
economic/JJ
activity/NN
rose/VBD
to/TO
51.6/CD
%/NN
after/IN
having/VBG
been/VBN
below/IN
50/CD
%/NN
for/IN
three/CD
consecutive/JJ
months/NNS
./.
A/DT
reading/NN
below/IN
50/CD
%/NN
indicates/VBZ
that/IN
the/DT
manufacturing/NN
industry/NN
is/VBZ
slowing/VBG
while/IN
a/DT
reading/NN
above/IN
50/CD
%/NN
suggests/VBZ
that/IN
the/DT
industry/NN
is/VBZ
expanding/VBG
./.
Bond/NN
prices/NNS
fell/VBD
after/IN
the/DT
Chicago/NNP
report/NN
was/VBD
released/VBN
./.
By/IN
the/DT
end/NN
of/IN
the/DT
day/NN
,/,
bond/NN
prices/NNS
were/VBD
mixed/JJ
./.
The/DT
benchmark/JJ
30-year/JJ
bond/NN
was/VBD
nearly/RB
1\/4/CD
point/NN
higher/JJR
,/,
or/CC
up/RB
about/RB
$/$
2.50/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
./.
New/JJ
two-year/JJ
notes/NNS
ended/VBD
unchanged/JJ
while/IN
three-year/JJ
and/CC
four-year/JJ
notes/NNS
were/VBD
slightly/RB
lower/JJR
./.
Municipal/JJ
bonds/NNS
ended/VBD
unchanged/JJ
to/TO
as/RB
much/JJ
as/IN
1\/2/CD
point/NN
higher/JJR
while/IN
mortgage-backed/JJ
securities/NNS
were/VBD
up/RB
about/RB
1\/8/CD
point/NN
./.
Corporate/JJ
bonds/NNS
were/VBD
unchanged/JJ
./.
In/IN
the/DT
corporate/JJ
market/NN
,/,
an/DT
expected/JJ
debt/NN
offering/NN
today/NN
by/IN
International/NNP
Business/NNP
Machines/NNP
Corp./NNP
generated/VBD
considerable/JJ
attention/NN
./.
The/DT
giant/JJ
computer/NN
maker/NN
is/VBZ
slated/VBN
to/TO
offer/VB
$/$
500/CD
million/CD
of/IN
30-year/JJ
non-callable/JJ
debentures/NNS
through/IN
underwriters/NNS
led/VBN
by/IN
Salomon/NNP
Brothers/NNP
Inc/NNP
./.
Traders/NNS
expect/VBP
the/DT
bonds/NNS
to/TO
yield/VB
about/RB
0.60/CD
to/TO
0.65/CD
percentage/NN
point/NN
above/IN
the/DT
Treasury/NNP
's/POS
benchmark/JJ
30-year/JJ
bond/NN
,/,
which/WDT
ended/VBD
Tuesday/NNP
with/IN
a/DT
yield/NN
of/IN
about/RB
7.90/CD
%/NN
./.
The/DT
last/JJ
time/NN
IBM/NNP
tapped/VBD
the/DT
corporate/JJ
debt/NN
market/NN
was/VBD
in/IN
April/NNP
1988/CD
,/,
when/WRB
it/PRP
offered/VBD
$/$
500/CD
million/CD
of/IN
debt/NN
securities/NNS
./.
IBM/NNP
's/POS
visits/NNS
to/TO
the/DT
debt/NN
market/NN
are/VBP
closely/RB
watched/VBN
by/IN
treasurers/NNS
at/IN
other/JJ
corporations/NNS
and/CC
by/IN
credit/NN
market/NN
analysts/NNS
./.
Some/DT
analysts/NNS
believe/VBP
the/DT
company/NN
has/VBZ
the/DT
ability/NN
to/TO
pinpoint/VB
the/DT
trough/NN
in/IN
interest-rate/JJ
cycles/NNS
./.
In/IN
October/NNP
1979/CD
,/,
just/RB
days/NNS
before/IN
the/DT
Federal/NNP
Reserve/NNP
raised/VBD
interest/NN
rates/NNS
,/,
IBM/NNP
offered/VBD
$/$
1/CD
billion/CD
in/IN
debt/NN
securities/NNS
./.
The/DT
boost/NN
in/IN
rates/NNS
sent/VBD
IBM/NNP
's/POS
bonds/NNS
tumbling/VBG
,/,
leaving/VBG
underwriters/NNS
with/IN
millions/NNS
of/IN
dollars/NNS
of/IN
losses/NNS
and/CC
triggering/VBG
a/DT
sell-off/NN
in/IN
the/DT
overall/JJ
market/NN
./.
The/DT
company/NN
``/``
ca/MD
n't/RB
be/VB
bullish/JJ
if/IN
they/PRP
're/VBP
doing/VBG
a/DT
sizable/JJ
30-year/JJ
bullet/NN
,/,
''/''
said/VBD
one/CD
analyst/NN
./.
Others/NNS
said/VBD
IBM/NNP
might/MD
increase/VB
the/DT
size/NN
of/IN
the/DT
offering/NN
to/TO
as/RB
much/JJ
as/IN
$/$
1/CD
billion/CD
if/IN
investor/NN
demand/NN
is/VBZ
strong/JJ
./.
The/DT
company/NN
has/VBZ
$/$
1/CD
billion/CD
in/IN
debt/NN
filed/VBN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
./.
``/``
I/PRP
think/VBP
the/DT
$/$
500/CD
million/CD
is/VBZ
a/DT
little/JJ
bit/NN
of/IN
a/DT
fire/NN
drill/NN
,/,
''/''
said/VBD
Jim/NNP
Ednee/NNP
,/,
head/NN
of/IN
the/DT
industrial/JJ
bond/NN
department/NN
at/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc/NNP
./.
``/``
I/PRP
think/VBP
as/IN
the/DT
pricing/NN
time/NN
arrives/VBZ
,/,
the/DT
bonds/NNS
will/MD
come/VB
a/DT
little/JJ
richer/JJR
and/CC
in/IN
a/DT
larger/JJR
amount/NN
./.
''/''
Treasury/NNP
Securities/NNS
Treasury/NNP
prices/NNS
ended/VBD
mixed/JJ
in/IN
light/JJ
trading/NN
./.
The/DT
benchmark/JJ
30-year/JJ
bond/NN
was/VBD
quoted/VBN
late/RB
at/IN
102/CD
12\/32/CD
to/TO
yield/VB
7.90/CD
%/NN
compared/VBN
with/IN
102/CD
7\/32/CD
to/TO
yield/VB
7.92/CD
%/NN
Monday/NNP
./.
The/DT
latest/JJS
10-year/JJ
notes/NNS
were/VBD
unchanged/JJ
at/IN
100/CD
16\/32/CD
to/TO
yield/VB
7.904/CD
%/NN
./.
Short-term/JJ
rates/NNS
also/RB
were/VBD
mixed/JJ
./.
The/DT
discount/NN
rate/NN
on/IN
three-month/JJ
Treasury/NNP
bills/NNS
rose/VBD
slightly/RB
from/IN
the/DT
average/JJ
rate/NN
at/IN
Monday/NNP
's/POS
auction/NN
to/TO
7.79/CD
%/NN
for/IN
a/DT
bond-equivalent/JJ
yield/NN
of/IN
8.04/CD
%/NN
./.
The/DT
discount/NN
rate/NN
on/IN
six-month/JJ
Treasury/NNP
bills/NNS
fell/VBD
slightly/RB
to/TO
7.60/CD
%/NN
for/IN
a/DT
bond-equivalent/JJ
yield/NN
of/IN
7.99/CD
%/NN
./.
Corporate/JJ
Issues/NNS
Two/CD
junk/NN
bond/NN
issues/NNS
were/VBD
priced/VBN
yesterday/NN
,/,
including/VBG
a/DT
scaled-backed/JJ
offering/NN
by/IN
Beatrice/NNP
Co/NNP
./.
A/DT
spokesman/NN
for/IN
underwriters/NNS
Salomon/NNP
Brothers/NNP
Inc./NNP
said/VBD
Beatrice/NN
cut/VBD
its/PRP$
high-yield/JJ
offering/NN
to/TO
$/$
251/CD
million/CD
from/IN
a/DT
planned/JJ
$/$
350/CD
million/CD
after/IN
it/PRP
became/VBD
clear/JJ
the/DT
company/NN
would/MD
have/VB
to/TO
give/VB
investors/NNS
higher/JJR
yields/NNS
./.
In/IN
the/DT
two-part/JJ
offering/NN
,/,
$/$
151/CD
million/CD
of/IN
senior/JJ
subordinated/JJ
reset/JJ
notes/NNS
were/VBD
priced/VBN
at/IN
99.75/CD
and/CC
carried/VBD
a/DT
rate/NN
of/IN
13/CD
3\/4/CD
%/NN
,/,
while/IN
the/DT
$/$
100/CD
million/CD
of/IN
senior/JJ
subordinated/JJ
floating/JJ
rate/NN
notes/NNS
were/VBD
priced/VBN
to/TO
float/VB
at/IN
4.25/CD
percentage/NN
points/NNS
above/IN
the/DT
London/NNP
Interbank/NNP
Offered/NNP
Rate/NNP
,/,
or/CC
LIBOR/NNP
./.
The/DT
one-year/JJ
LIBOR/NNP
rate/NN
yesterday/NN
was/VBD
8/CD
7\/16/CD
%/NN
./.
Since/IN
the/DT
recent/JJ
deterioration/NN
of/IN
the/DT
junk-bond/NN
market/NN
,/,
at/IN
least/JJS
two/CD
other/JJ
junk/NN
issuers/NNS
have/VBP
said/VBN
they/PRP
plan/VBP
to/TO
scale/VB
back/RP
planned/JJ
high-yield/JJ
offerings/NNS
,/,
and/CC
several/JJ
issues/NNS
have/VBP
been/VBN
postponed/VBN
./.
William/NNP
Carmichael/NNP
,/,
Beatrice/NNP
chief/JJ
financial/JJ
officer/NN
,/,
said/VBD
favorable/JJ
market/NN
conditions/NNS
in/IN
September/NNP
prompted/VBD
the/DT
company/NN
to/TO
plan/VB
more/JJR
debt/NN
than/IN
necessary/JJ
./.
``/``
However/RB
,/,
given/VBN
the/DT
changes/NNS
in/IN
the/DT
market/NN
conditions/NNS
that/WDT
have/VBP
occurred/VBN
since/IN
then/RB
,/,
we/PRP
decided/VBD
to/TO
sell/VB
only/RB
the/DT
amount/NN
needed/VBD
to/TO
proceed/VB
with/IN
our/PRP$
contemplated/JJ
recapitalization/NN
,/,
''/''
he/PRP
said/VBD
./.
Under/IN
the/DT
firm/NN
's/POS
original/JJ
bank/NN
credit/NN
agreement/NN
,/,
it/PRP
was/VBD
required/VBN
to/TO
raise/VB
$/$
250/CD
million/CD
of/IN
subordinated/JJ
debt/NN
to/TO
be/VB
used/VBN
to/TO
repay/VB
some/DT
of/IN
the/DT
bank/NN
borrowings/NNS
drawn/VBN
to/TO
redeem/VB
$/$
526.3/CD
million/CD
of/IN
increasing/VBG
rate/NN
debentures/NNS
in/IN
August/NNP
./.
A/DT
month/NN
ago/RB
,/,
when/WRB
Beatrice/NNP
first/RB
filed/VBD
to/TO
sell/VB
debt/NN
,/,
the/DT
company/NN
had/VBD
planned/VBN
to/TO
offer/VB
$/$
200/CD
million/CD
of/IN
its/PRP$
senior/JJ
subordinated/JJ
reset/JJ
notes/NNS
at/IN
a/DT
yield/NN
of/IN
12/CD
3\/4/CD
%/NN
./.
The/DT
$/$
150/CD
million/CD
in/IN
senior/JJ
subordinated/JJ
floating-rate/JJ
notes/NNS
were/VBD
targeted/VBN
to/TO
be/VB
offered/VBN
at/IN
a/DT
price/NN
to/TO
float/VB
four/CD
percentage/NN
points/NNS
above/IN
the/DT
three-month/JJ
LIBOR/NNP
./.
By/IN
October/NNP
,/,
however/RB
,/,
market/NN
conditions/NNS
had/VBD
deteriorated/VBN
and/CC
the/DT
reset/NN
notes/NNS
were/VBD
targeted/VBN
to/TO
be/VB
offered/VBN
at/IN
a/DT
yield/NN
of/IN
between/IN
13/CD
1\/4/CD
%/NN
and/CC
13/CD
1\/2/CD
%/NN
./.
Mr./NNP
Carmichael/NNP
said/VBD
investors/NNS
also/RB
demanded/VBD
stricter/JJR
convenants/NNS
./.
Continental/NNP
Cablevision/NNP
Inc./NNP
,/,
via/IN
underwriters/NNS
at/IN
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
,/,
priced/VBD
$/$
350/CD
million/CD
of/IN
junk/NN
bonds/NNS
at/IN
par/NN
to/TO
yield/VB
12/CD
7\/8/CD
%/NN
./.
Mortgage-Backed/JJ
Securities/NNS
J.C./NNP
Penney/NNP
&/CC
Co./NNP
issued/VBD
$/$
350/CD
million/CD
of/IN
securities/NNS
backed/VBN
by/IN
credit-card/JJ
receivables/NN
./.
The/DT
securities/NNS
were/VBD
priced/VBN
at/IN
99.1875/CD
to/TO
yield/VB
about/RB
9.19/CD
%/NN
./.
Underwriters/NNS
at/IN
First/NNP
Boston/NNP
Corp./NNP
said/VBD
the/DT
J.C./NNP
Penney/NNP
credit-card/JJ
securities/NNS
are/VBP
the/DT
first/JJ
with/IN
a/DT
10-year/JJ
average/JJ
life/NN
,/,
which/WDT
is/VBZ
much/RB
longer/JJR
than/IN
previous/JJ
such/JJ
issues/NNS
./.
Elsewhere/RB
,/,
Ginnie/NNP
Mae/NNP
's/POS
9/CD
%/NN
issue/NN
for/IN
November/NNP
delivery/NN
was/VBD
quoted/VBN
at/IN
98/CD
18\/32/CD
bid/NN
,/,
up/RB
5\/32/CD
from/IN
late/JJ
Monday/NNP
,/,
to/TO
yield/VB
about/RB
9.333/CD
%/NN
to/TO
a/DT
12-year/JJ
average/JJ
life/NN
assumption/NN
./.
Freddie/NNP
Mac/NNP
's/POS
9/CD
1\/2/CD
%/NN
issue/NN
was/VBD
quoted/VBN
at/IN
99/CD
20\/32/CD
,/,
up/RB
3\/32/CD
from/IN
Monday/NNP
./.
Fannie/NNP
Mae/NNP
's/POS
9/CD
%/NN
issue/NN
was/VBD
at/IN
98/CD
7\/32/CD
,/,
up/RB
1\/8/CD
./.
On/IN
the/DT
pricing/NN
front/NN
,/,
an/DT
11-class/JJ
issue/NN
of/IN
$/$
500/CD
million/CD
Federal/NNP
Home/NNP
Loan/NNP
Mortgage/NNP
Corp/NNP
./.
Remic/NNP
mortgage/NN
securities/NNS
was/VBD
launched/VBN
by/IN
a/DT
Morgan/NNP
Stanley/NNP
group/NN
./.
The/DT
offering/NN
is/VBZ
backed/VBN
by/IN
Freddie/NNP
Mac/NNP
's/POS
10/CD
%/NN
issue/NN
with/IN
a/DT
weighted/JJ
average/JJ
term/NN
to/TO
maturity/NN
of/IN
29.583/CD
months/NNS
./.
Municipal/JJ
Issues/NNS
Municipal/JJ
bonds/NNS
were/VBD
little/RB
changed/VBN
to/TO
1\/2/CD
point/NN
higher/JJR
in/IN
late/JJ
dealings/NNS
./.
``/``
We/PRP
were/VBD
oversold/VBN
and/CC
today/NN
we/PRP
bounced/VBD
back/RP
./.
Some/DT
accounts/NNS
came/VBD
in/RP
for/IN
some/DT
blocks/NNS
in/IN
the/DT
secondary/JJ
market/NN
which/WDT
we/PRP
have/VBP
n't/RB
seen/VBN
for/IN
a/DT
while/NN
,/,
''/''
said/VBD
one/CD
trader/NN
./.
``/``
There/EX
were/VBD
no/DT
{/(
sell/VB
}/)
lists/NNS
and/CC
the/DT
calendar/NN
is/VBZ
lightening/VBG
up/RP
a/DT
bit/NN
./.
There/EX
's/VBZ
light/NN
at/IN
the/DT
end/NN
of/IN
the/DT
tunnel/NN
for/IN
municipals/NNS
,/,
''/''
he/PRP
said/VBD
,/,
adding/VBG
that/IN
he/PRP
expects/VBZ
prices/NNS
to/TO
``/``
inch/VB
up/RB
''/''
in/IN
the/DT
near/JJ
term/NN
./.
The/DT
market/NN
's/POS
tone/NN
improved/VBD
after/IN
Monday/NNP
's/POS
pricing/NN
of/IN
$/$
813/CD
million/CD
New/NNP
York/NNP
City/NNP
general/JJ
obligation/NN
bonds/NNS
./.
The/DT
issue/NN
's/POS
smooth/JJ
absorption/NN
eased/VBD
fears/NNS
that/IN
supply/NN
would/MD
overwhelm/VB
demand/NN
in/IN
coming/JJ
sessions/NNS
,/,
traders/NNS
said/VBD
./.
Demand/NN
for/IN
the/DT
bonds/NNS
was/VBD
strong/JJ
enough/RB
to/TO
permit/VB
underwriters/NNS
to/TO
trim/VB
some/DT
yields/NNS
in/IN
the/DT
tax-exempt/JJ
portion/NN
of/IN
the/DT
offering/NN
late/JJ
Monday/NNP
./.
A/DT
two-part/JJ
$/$
75.1/CD
million/CD
offering/NN
of/IN
wastewater/NN
treatment/NN
bonds/NNS
by/IN
the/DT
New/NNP
Jersey/NNP
Wastewater/NNP
Treatment/NNP
Trust/NNP
was/VBD
more/RBR
than/IN
half/RB
sold/VBN
by/IN
late/RB
in/IN
the/DT
session/NN
,/,
according/VBG
to/TO
lead/JJ
underwriter/NN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
./.
The/DT
debt/NN
was/VBD
reoffered/VBN
priced/VBN
to/TO
yield/VB
from/IN
6/CD
%/NN
in/IN
1991/CD
to/TO
7.15/CD
%/NN
in/IN
2008-2009/CD
./.
Foreign/JJ
Bonds/NNS
Most/JJS
foreign/JJ
government/NN
bonds/NNS
markets/NNS
were/VBD
quiet/JJ
./.
West/JJ
German/JJ
bonds/NNS
firmed/VBD
a/DT
bit/NN
after/IN
Monday/NNP
's/POS
fall/NN
,/,
but/CC
traders/NNS
said/VBD
the/DT
market/NN
remains/VBZ
bearish/JJ
due/RB
to/TO
speculation/NN
that/IN
interest/NN
rates/NNS
could/MD
rise/VB
again/RB
./.
In/IN
a/DT
speech/NN
given/VBN
Friday/NNP
but/CC
released/VBN
late/JJ
Monday/NNP
,/,
Bundesbank/NNP
Vice/NNP
President/NNP
Helmut/NNP
Schlesinger/NNP
suggested/VBD
that/IN
it/PRP
was/VBD
risky/JJ
to/TO
claim/VB
that/IN
the/DT
booming/JJ
German/JJ
economy/NN
has/VBZ
reached/VBN
the/DT
peak/NN
of/IN
its/PRP$
cycle/NN
./.
His/PRP$
comments/NNS
were/VBD
interpreted/VBN
as/IN
a/DT
sign/NN
that/IN
higher/JJR
interest/NN
rates/NNS
are/VBP
possible/JJ
./.
On/IN
Oct./NNP
5/CD
,/,
the/DT
Bundesbank/NNP
raised/VBD
the/DT
Lombard/NNP
and/CC
discount/NN
rates/NNS
by/IN
one/CD
percentage/NN
point/NN
to/TO
8/CD
%/NN
and/CC
6/CD
%/NN
,/,
respectively/RB
,/,
the/DT
highest/JJS
levels/NNS
in/IN
seven/CD
years/NNS
./.
Germany/NNP
's/POS
7/CD
%/NN
bond/NN
due/JJ
October/NNP
1999/CD
was/VBD
unchanged/JJ
at/IN
99.35/CD
to/TO
yield/VB
7.09/CD
%/NN
while/IN
the/DT
6/CD
3\/4/CD
%/NN
notes/NNS
due/JJ
July/NNP
1994/CD
rose/VBD
0.025/CD
point/NN
to/TO
97.275/CD
to/TO
yield/VB
7.445/CD
%/NN
./.
Japanese/JJ
government/NN
bonds/NNS
showed/VBD
little/JJ
change/NN
./.
Japan/NNP
's/POS
benchmark/JJ
No./NN
111/CD
issue/NN
due/JJ
1998/CD
ended/VBD
on/IN
brokers/NNS
'/POS
screens/NNS
at/IN
95.90/CD
,/,
down/RB
0.02/CD
point/NN
,/,
to/TO
yield/VB
5.435/CD
%/NN
./.
British/JJ
government/NN
bonds/NNS
were/VBD
little/RB
changed/VBN
as/IN
investors/NNS
awaited/VBD
an/DT
address/NN
on/IN
economic/JJ
policy/NN
by/IN
John/NNP
Major/NNP
,/,
the/DT
new/JJ
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
./.
Britain/NNP
's/POS
benchmark/JJ
11/CD
3\/4/CD
%/NN
bond/NN
due/JJ
2003\/2007/CD
rose/VBD
2\/32/CD
to/TO
111/CD
1\/2/CD
to/TO
yield/VB
10.14/CD
%/NN
while/IN
the/DT
11/CD
3\/4/CD
%/NN
notes/NNS
due/JJ
1991/CD
were/VBD
unchanged/JJ
at/IN
98/CD
21\/32/CD
to/TO
yield/VB
12.95/CD
%/NN
./.
Paramount/NNP
Communications/NNP
Inc./NNP
said/VBD
it/PRP
sold/VBD
two/CD
Simon/NNP
&/CC
Schuster/NNP
information/NN
services/NNS
units/NNS
to/TO
Macmillan/NNP
Inc./NNP
,/,
a/DT
subsidiary/NN
of/IN
Maxwell/NNP
Communication/NNP
Corp/NNP
./.
The/DT
two/CD
units/NNS
are/VBP
Prentice/NNP
Hall/NNP
Information/NNP
Services/NNP
,/,
which/WDT
publishes/VBZ
tax/NN
,/,
financial/JJ
planning/NN
and/CC
business/NN
law/NN
information/NN
,/,
among/IN
other/JJ
services/NNS
,/,
and/CC
Prentice/NNP
Hall/NNP
Information/NNP
Network/NNP
,/,
which/WDT
electronically/RB
delivers/VBZ
tax/NN
information/NN
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
,/,
but/CC
industry/NN
executives/NNS
said/VBD
the/DT
units/NNS
were/VBD
sold/VBN
for/IN
$/$
40/CD
million/CD
./.
Arthur/NNP
H./NNP
Rosenfeld/NNP
,/,
previously/RB
president/NN
of/IN
the/DT
Prentice/NNP
Hall/NNP
Tax/NNP
and/CC
Professional/NNP
Services/NNP
division/NN
,/,
was/VBD
named/VBN
president/NN
of/IN
the/DT
newly/RB
formed/VBN
Macmillan/NNP
Professional/NNP
and/CC
Business/NNP
Reference/NNP
division/NN
./.
Simon/NNP
&/CC
Schuster/NNP
retains/VBZ
the/DT
Corporation/NNP
Law/NNP
looseleaf/NN
service/NN
,/,
which/WDT
will/MD
become/VB
part/NN
of/IN
its/PRP$
Prentice/NNP
Hall/NNP
Law/NNP
&/CC
Business/NNP
unit/NN
./.
A/DT
governing/VBG
body/NN
of/IN
both/CC
the/DT
Financial/NNP
Accounting/NNP
Standards/NNP
Board/NNP
and/CC
the/DT
Governmental/NNP
Accounting/NNP
Standards/NNP
Board/NNP
voted/VBD
to/TO
give/VB
the/DT
FASB/NNP
jurisdiction/NN
over/IN
accounting/NN
standards/NNS
for/IN
certain/JJ
government-owned/JJ
entities/NNS
./.
The/DT
Financial/NNP
Accounting/NNP
Foundation/NNP
voted/VBD
12-2/RB
that/DT
FASB/NNP
accounting/NN
rules/NNS
supercede/VBP
GASB/NNP
rules/NNS
in/IN
regard/NN
to/TO
utilities/NNS
,/,
hospitals/NNS
,/,
and/CC
colleges/NNS
and/CC
universities/NNS
owned/VBN
by/IN
the/DT
government/NN
./.
GASB/NNP
rules/NNS
still/RB
apply/VBP
for/IN
other/JJ
government/NN
units/NNS
./.
After/IN
the/DT
GASB/NNP
was/VBD
founded/VBN
in/IN
1984/CD
,/,
11/CD
years/NNS
after/IN
the/DT
FASB/NNP
,/,
the/DT
government-owned/JJ
entities/NNS
were/VBD
supposed/VBN
to/TO
follow/VB
FASB/NNP
rules/NNS
unless/IN
the/DT
GASB/NNP
superceded/VBD
them/PRP
./.
The/DT
GASB/NNP
had/VBD
told/VBN
governments/NNS
they/PRP
did/VBD
n't/RB
have/VB
to/TO
follow/VB
FASB/NNP
rules/NNS
on/IN
depreciation/NN
,/,
making/VBG
it/PRP
difficult/JJ
for/IN
bond-rating/JJ
agencies/NNS
to/TO
compare/VB
private/JJ
and/CC
state-owned/JJ
schools/NNS
,/,
which/WDT
compete/VBP
in/IN
the/DT
public/JJ
bond/NN
market/NN
./.
The/DT
foundation/NN
vote/NN
is/VBZ
effective/JJ
for/IN
the/DT
affected/JJ
government/NN
entities/NNS
with/IN
fiscal/JJ
years/NNS
that/WDT
begin/VBP
starting/VBG
next/JJ
Jan./NNP
1/CD
and/CC
makes/VBZ
the/DT
financial/JJ
results/NNS
of/IN
the/DT
hospitals/NNS
,/,
colleges/NNS
and/CC
schools/NNS
easier/JJR
to/TO
compare/VB
with/IN
for-profit/JJ
businesses/NNS
./.
But/CC
it/PRP
may/MD
lead/VB
to/TO
separate/JJ
financial/JJ
reports/NNS
based/VBN
on/IN
different/JJ
rules/NNS
for/IN
the/DT
government/NN
entities/NNS
under/IN
FASB/NNP
rules/NNS
and/CC
those/DT
still/RB
under/IN
GASB/NNP
rules/NNS
./.
``/``
Managers/NNS
of/IN
government/NN
entities/NNS
are/VBP
often/RB
more/RBR
concerned/JJ
with/IN
the/DT
political/JJ
and/CC
legal/JJ
structure/NN
and/CC
financial-report/JJ
comparability/NN
with/IN
profit-making/JJ
businesses/NNS
is/VBZ
n't/RB
always/RB
as/RB
high/JJ
a/DT
priority/NN
,/,
''/''
a/DT
foundation/NN
spokesman/NN
said/VBD
./.
Avery/NNP
Inc./NNP
said/VBD
it/PRP
completed/VBD
the/DT
sale/NN
of/IN
Uniroyal/NNP
Chemical/NNP
Holding/NNP
Co./NNP
to/TO
a/DT
group/NN
led/VBN
by/IN
management/NN
of/IN
Uniroyal/NNP
Chemical/NNP
Co./NNP
,/,
the/DT
unit/NN
's/POS
main/JJ
business/NN
./.
It/PRP
valued/VBD
the/DT
transaction/NN
at/IN
$/$
800/CD
million/CD
./.
Avery/NNP
,/,
which/WDT
continues/VBZ
to/TO
operate/VB
a/DT
coal/NN
company/NN
it/PRP
expects/VBZ
to/TO
sell/VB
at/IN
a/DT
loss/NN
,/,
said/VBD
in/IN
proxy/JJ
materials/NNS
it/PRP
intends/VBZ
to/TO
seek/VB
control/NN
of/IN
one/CD
or/CC
more/JJR
companies/NNS
./.
After/IN
fees/NNS
and/CC
repayment/NN
of/IN
debt/NN
,/,
Avery/NNP
is/VBZ
left/VBN
with/IN
about/RB
$/$
24/CD
million/CD
in/IN
cash/NN
and/CC
securities/NNS
from/IN
the/DT
Uniroyal/NNP
sale/NN
./.
Avery/NNP
paid/VBD
$/$
750/CD
million/CD
,/,
including/VBG
various/JJ
legal/JJ
and/CC
financing/NN
fees/NNS
,/,
to/TO
acquire/VB
Uniroyal/NNP
Chemical/NNP
,/,
Middlebury/NNP
,/,
Conn./NNP
,/,
in/IN
1986/CD
--/:
a/DT
move/NN
that/WDT
burdened/VBD
Avery/NNP
with/IN
debt/NN
./.
In/IN
over-the-counter/JJ
trading/NN
,/,
Avery/NNP
shares/NNS
were/VBD
quoted/VBN
yesterday/NN
at/IN
a/DT
bid/NN
price/NN
of/IN
93.75/CD
cents/NNS
a/DT
share/NN
./.
According/VBG
to/TO
Avery/NNP
,/,
for/IN
the/DT
year/NN
ended/VBN
Sept./NNP
30/CD
,/,
1988/CD
,/,
Uniroyal/NNP
Chemical/NNP
had/VBD
sales/NNS
of/IN
$/$
734.2/CD
million/CD
and/CC
a/DT
net/JJ
loss/NN
of/IN
$/$
47.1/CD
million/CD
./.
An/DT
Avery/NNP
spokesman/NN
said/VBD
that/IN
the/DT
loss/NN
was/VBD
magnified/VBN
by/IN
accounting/NN
adjustments/NNS
and/CC
that/IN
the/DT
company/NN
's/POS
loss/NN
was/VBD
smaller/JJR
on/IN
a/DT
cash/NN
basis/NN
./.
Uniroyal/NNP
has/VBZ
2,600/CD
employees/NNS
and/CC
facilities/NNS
in/IN
the/DT
U.S./NNP
,/,
Canada/NNP
,/,
Brazil/NNP
,/,
Italy/NNP
and/CC
Taiwan/NNP
./.
In/IN
a/DT
related/JJ
development/NN
,/,
Avery/NNP
said/VBD
it/PRP
completed/VBD
a/DT
recapitalization/NN
in/IN
which/WDT
its/PRP$
controlling/VBG
shareholders/NNS
and/CC
top/JJ
officers/NNS
,/,
Nelson/NNP
Peltz/NNP
and/CC
Peter/NNP
W./NNP
May/NNP
,/,
surrendered/VBD
warrants/NNS
and/CC
preferred/JJ
stock/NN
in/IN
exchange/NN
for/IN
a/DT
larger/JJR
stake/NN
in/IN
Avery/NNP
's/POS
common/JJ
shares/NNS
./.
On/IN
a/DT
fully/RB
diluted/JJ
basis/NN
,/,
the/DT
two/CD
raised/VBD
their/PRP$
stake/NN
to/TO
68/CD
%/NN
from/IN
51/CD
%/NN
./.
In/IN
December/NNP
1988/CD
,/,
Messrs./NNPS
Peltz/NNP
and/CC
May/NNP
sold/VBD
their/PRP$
stock/NN
in/IN
Triangle/NNP
Industries/NNP
Inc./NNP
,/,
a/DT
packaging/NN
company/NN
they/PRP
controlled/VBD
,/,
to/TO
Pechiney/NNP
Corp./NNP
of/IN
France/NNP
./.
The/DT
executives/NNS
had/VBD
profited/VBN
handsomely/RB
by/IN
building/VBG
American/NNP
National/NNP
Can/MD
Co./NNP
,/,
Triangle/NNP
's/POS
chief/JJ
asset/NN
./.
In/IN
January/NNP
1989/CD
,/,
the/DT
two/CD
men/NNS
acquired/VBD
the/DT
non-packaging/JJ
assets/NNS
of/IN
Triangle/NNP
,/,
including/VBG
a/DT
controlling/JJ
stake/NN
in/IN
Avery/NNP
and/CC
,/,
by/IN
extension/NN
,/,
Uniroyal/NNP
Chemical/NNP
./.
In/IN
the/DT
August/NNP
proxy/NN
material/NN
,/,
Avery/NNP
said/VBD
that/IN
unless/IN
it/PRP
sold/VBD
Uniroyal/NNP
,/,
its/PRP$
ability/NN
to/TO
service/NN
debt/NN
would/MD
be/VB
hurt/VBN
and/CC
Avery/NNP
's/POS
shareholder/NN
value/NN
would/MD
``/``
continue/VB
to/TO
erode/VB
./.
''/''
Until/IN
Avery/NNP
makes/VBZ
an/DT
acquisition/NN
,/,
Messrs./NNPS
Peltz/NNP
and/CC
May/NNP
will/MD
waive/VB
their/PRP$
direct/JJ
salaries/NNS
and/CC
bonuses/NNS
,/,
the/DT
company/NN
said/VBD
./.
For/IN
at/IN
least/JJS
the/DT
next/JJ
six/CD
months/NNS
,/,
however/RB
,/,
Avery/NNP
will/MD
continue/VB
to/TO
pay/VB
$/$
200,000/CD
a/DT
month/NN
for/IN
management/NN
services/NNS
to/TO
a/DT
company/NN
controlled/VBN
by/IN
Messrs./NN
Peltz/NNP
and/CC
May/NNP
,/,
according/VBG
to/TO
the/DT
proxy/JJ
material/NN
./.
Clarcor/NNP
Inc./NNP
said/VBD
a/DT
plan/NN
to/TO
sell/VB
its/PRP$
J.L./NNP
Clark/NNP
Inc./NNP
subsidiary/NN
to/TO
a/DT
group/NN
headed/VBN
by/IN
Anderson/NNP
Industries/NNPS
Inc./NNP
for/IN
$/$
70.3/CD
million/CD
has/VBZ
been/VBN
terminated/VBN
./.
Clarcor/NNP
,/,
a/DT
maker/NN
of/IN
packaging/NN
and/CC
filtration/NN
products/NNS
,/,
said/VBD
the/DT
two/CD
companies/NNS
could/MD
n't/RB
agree/VB
on/IN
terms/NNS
of/IN
a/DT
definitive/JJ
agreement/NN
./.
The/DT
sale/NN
price/NN
of/IN
the/DT
unit/NN
,/,
which/WDT
makes/VBZ
packaging/NN
products/NNS
,/,
was/VBD
to/TO
consist/VB
of/IN
cash/NN
,/,
notes/NNS
and/CC
an/DT
amount/NN
to/TO
be/VB
determined/VBN
by/IN
the/DT
unit/NN
's/POS
future/JJ
performance/NN
./.
Clarcor/NNP
said/VBD
it/PRP
is/VBZ
inviting/VBG
proposals/NNS
from/IN
other/JJ
prospective/JJ
purchasers/NNS
of/IN
the/DT
unit/NN
./.
Both/DT
Clarcor/NNP
and/CC
Anderson/NNP
are/VBP
based/VBN
in/IN
Rockford/NNP
,/,
Ill/NNP
./.
Rally/NNP
's/POS
Inc./NN
said/VBD
it/PRP
adopted/VBD
a/DT
shareholders/NNS
rights/NNS
plan/NN
to/TO
protect/VB
shareholders/NNS
from/IN
an/DT
inadequately/RB
priced/VBN
takeover/NN
offer/NN
./.
The/DT
plan/NN
provides/VBZ
for/IN
the/DT
distribution/NN
of/IN
one/CD
common/JJ
stock-purchase/JJ
right/NN
as/IN
a/DT
dividend/NN
for/IN
each/DT
share/NN
of/IN
common/JJ
outstanding/JJ
./.
Each/DT
right/NN
entitles/VBZ
shareholders/NNS
to/TO
buy/VB
one-half/JJ
share/NN
of/IN
common/JJ
for/IN
$/$
30/CD
./.
Earlier/RBR
this/DT
month/NN
,/,
a/DT
group/NN
led/VBN
by/IN
three/CD
of/IN
the/DT
company/NN
's/POS
directors/NNS
,/,
Burt/NNP
Sugarman/NNP
,/,
James/NNP
M./NNP
Trotter/NNP
III/NNP
and/CC
Willam/NNP
E./NNP
Trotter/NNP
II/NNP
,/,
indicated/VBD
it/PRP
had/VBD
a/DT
45.2/CD
%/NN
stake/NN
in/IN
the/DT
Louisville/NNP
,/,
Ky./NNP
,/,
fast-food/NN
company/NN
and/CC
that/IN
it/PRP
planned/VBD
to/TO
seek/VB
a/DT
majority/NN
of/IN
seats/NNS
on/IN
Rally/NNP
's/POS
nine-member/JJ
board/NN
./.
The/DT
company/NN
said/VBD
it/PRP
was/VBD
``/``
concerned/VBN
about/IN
the/DT
announced/JJ
intent/NN
to/TO
acquire/VB
control/NN
of/IN
the/DT
company/NN
''/''
by/IN
a/DT
Sugarman-led/JJ
group/NN
./.
Fujitsu/NNP
Ltd./NNP
said/VBD
it/PRP
wants/VBZ
to/TO
withdraw/VB
its/PRP$
controversial/JJ
one-yen/JJ
bid/NN
to/TO
design/VB
a/DT
waterworks/NN|NNS
computer/NN
system/NN
for/IN
the/DT
city/NN
of/IN
Hiroshima/NNP
./.
Meanwhile/RB
,/,
Japan/NNP
's/POS
Fair/NNP
Trade/NNP
Commission/NNP
said/VBD
it/PRP
was/VBD
considering/VBG
launching/VBG
an/DT
investigation/NN
into/IN
whether/IN
the/DT
bid/NN
,/,
the/DT
equivalent/NN
of/IN
less/JJR
than/IN
a/DT
penny/NN
,/,
violates/VBZ
anti-monopoly/JJ
laws/NNS
./.
Hiroshima/NNP
last/JJ
week/NN
held/VBD
an/DT
auction/NN
to/TO
pick/VB
the/DT
contractor/NN
,/,
expecting/VBG
to/TO
pay/VB
about/RB
11/CD
million/CD
yen/NNS
for/IN
the/DT
project/NN
./.
Eight/CD
companies/NNS
submitted/VBD
bids/NNS
,/,
but/CC
Fujitsu/NNP
won/VBD
the/DT
contract/NN
by/IN
essentially/RB
saying/VBG
it/PRP
would/MD
do/VB
the/DT
job/NN
for/IN
free/JJ|RB
./.
News/NNP
of/IN
the/DT
bid/NN
drew/VBD
sharp/JJ
criticism/NN
from/IN
other/JJ
computer/NN
companies/NNS
and/CC
industry/NN
observers/NNS
./.
Fujitsu/NNP
itself/PRP
,/,
which/WDT
said/VBD
the/DT
bid/NN
had/VBD
n't/RB
been/VBN
approved/VBN
by/IN
its/PRP$
headquarters/NNS
,/,
was/VBD
clearly/RB
embarrassed/JJ
./.
The/DT
bid/NN
was/VBD
n't/RB
``/``
socially/RB
acceptable/JJ
,/,
''/''
a/DT
company/NN
spokeswoman/NN
said/VBD
./.
Hiroshima/NNP
officials/NNS
said/VBD
they/PRP
still/RB
consider/VBP
the/DT
contract/NN
in/IN
effect/NN
and/CC
had/VBD
no/DT
immediate/JJ
plans/NNS
to/TO
cancel/VB
it/PRP
./.
They/PRP
said/VBD
they/PRP
wanted/VBD
to/TO
wait/VB
for/IN
the/DT
outcome/NN
of/IN
any/DT
government/NN
investigation/NN
before/IN
deciding/VBG
what/WP
to/TO
do/VB
./.
The/DT
city/NN
's/POS
Department/NNP
of/IN
Consumer/NNP
Affairs/NNP
charged/VBD
Newmark/NNP
&/CC
Lewis/NNP
Inc./NNP
with/IN
failing/VBG
to/TO
deliver/VB
on/IN
its/PRP$
promise/NN
of/IN
lowering/VBG
prices/NNS
./.
In/IN
a/DT
civil/JJ
suit/NN
commenced/VBD
in/IN
state/NN
Supreme/NNP
Court/NNP
in/IN
New/NNP
York/NNP
,/,
the/DT
agency/NN
alleged/VBD
that/IN
the/DT
consumer-electronics/NNS
and/CC
appliance/NN
discount-retailing/NN
chain/NN
engaged/VBD
in/IN
deceptive/JJ
advertising/NN
by/IN
claiming/VBG
to/TO
have/VB
``/``
lowered/VBN
every/DT
price/NN
on/IN
every/DT
item/NN
''/''
as/IN
part/NN
of/IN
an/DT
advertising/NN
campaign/NN
that/WDT
began/VBD
June/NNP
1/CD
./.
The/DT
agency/NN
said/VBD
it/PRP
monitored/VBD
Newmark/NNP
&/CC
Lewis/NNP
's/POS
advertised/JJ
prices/NNS
before/IN
and/CC
after/IN
the/DT
ad/NN
campaign/NN
,/,
and/CC
found/VBD
that/IN
the/DT
prices/NNS
of/IN
at/IN
least/JJS
50/CD
different/JJ
items/NNS
either/CC
increased/VBD
or/CC
stayed/VBD
the/DT
same/JJ
./.
In/IN
late/JJ
May/NNP
,/,
Newmark/NNP
&/CC
Lewis/NNP
announced/VBD
a/DT
plan/NN
to/TO
cut/VB
prices/NNS
5/CD
%/NN
to/TO
20/CD
%/NN
and/CC
eliminate/VB
what/WP
it/PRP
called/VBD
a/DT
``/``
standard/JJ
discount-retailing/NN
practice/NN
''/''
of/IN
negotiating/VBG
individual/JJ
deals/NNS
with/IN
customers/NNS
./.
The/DT
consumer/NN
agency/NN
also/RB
disputed/VBN
Newmark/NNP
&/CC
Lewis/NNP
's/POS
continuing/VBG
strategy/NN
of/IN
advertising/VBG
``/``
new/JJ
lower/JJR
prices/NNS
''/''
when/WRB
allgedly/RB
there/EX
have/VBP
n't/RB
been/VBN
price/NN
reductions/NNS
since/IN
June/NNP
1/CD
./.
Richard/NNP
D./NNP
Lewis/NNP
,/,
president/NN
of/IN
the/DT
47-store/JJ
chain/NN
,/,
defended/VBD
the/DT
company/NN
's/POS
pricing/NN
campaign/NN
,/,
saying/VBG
it/PRP
did/VBD
n't/RB
use/VB
``/``
the/DT
misleading/JJ
expression/NN
`/``
reduced/VBN
from/IN
original/JJ
prices/NNS
./.
'/''
''/''
Mr./NNP
Lewis/NNP
said/VBD
the/DT
company/NN
marked/VBD
price/NN
tags/NNS
and/CC
advertised/VBD
at/IN
its/PRP$
``/``
lowest/JJS
possible/JJ
prices/NNS
''/''
for/IN
all/PDT
its/PRP$
merchandise/NN
to/TO
reduce/VB
public/JJ
confusion/NN
./.
Mr./NNP
Lewis/NNP
said/VBD
the/DT
company/NN
gave/VBD
the/DT
Consumer/NNP
Affairs/NNP
department/NN
``/``
volumes/NNS
of/IN
documents/NNS
''/''
to/TO
substantiate/VB
its/PRP$
statements/NNS
,/,
and/CC
made/VBD
``/``
every/DT
effort/NN
to/TO
comply/VB
''/''
with/IN
all/DT
the/DT
agency/NN
's/POS
policies/NNS
./.
In/IN
its/PRP$
suit/NN
,/,
the/DT
consumer/NN
agency/NN
seeks/VBZ
fines/NNS
of/IN
$/$
1,000/CD
per/IN
violation/NN
of/IN
the/DT
city/NN
's/POS
Consumer/NNP
Protection/NNP
Law/NNP
,/,
costs/NNS
of/IN
investigation/NN
,/,
and/CC
an/DT
injunction/NN
to/TO
prevent/VB
Newmark/NNP
&/CC
Lewis/NNP
from/IN
continuing/VBG
its/PRP$
allegedly/RB
deceptive/JJ
advertising/NN
./.
Wary/JJ
investors/NNS
the/DT
stock/NN
market/NN
's/POS
equivalent/NN
of/IN
bomb/NN
shelters/NNS
,/,
buying/VBG
shares/NNS
of/IN
gold-mining/NN
and/CC
utility/NN
companies/NNS
./.
Those/DT
two/CD
groups/NNS
have/VBP
recently/RB
been/VBN
leading/VBG
the/DT
list/NN
of/IN
stocks/NNS
setting/VBG
new/JJ
highs/NNS
./.
On/IN
Friday/NNP
,/,
when/WRB
only/RB
a/DT
dozen/NN
common/JJ
stocks/NNS
hit/VBD
52-week/JJ
highs/NNS
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
five/CD
were/VBD
gold-mining/NN
issues/NNS
,/,
and/CC
another/DT
four/CD
were/VBD
utilities/NNS
./.
On/IN
Monday/NNP
,/,
when/WRB
a/DT
mere/JJ
seven/CD
common/JJ
stocks/NNS
managed/VBD
new/JJ
highs/NNS
,/,
six/CD
were/VBD
utilities/NNS
or/CC
golds/NNS
./.
At/IN
first/JJ
glance/NN
,/,
gold/NN
and/CC
utilities/NNS
seem/VBP
strange/JJ
bedfellows/NNS
./.
After/IN
all/DT
,/,
gold/NN
prices/NNS
usually/RB
soar/VBP
when/WRB
inflation/NN
is/VBZ
high/JJ
./.
Utility/NN
stocks/NNS
,/,
on/IN
the/DT
other/JJ
hand/NN
,/,
thrive/VBP
on/IN
disinflation/NN
,/,
because/IN
the/DT
fat/JJ
dividends/NNS
utilities/NNS
pay/VBP
look/VBP
more/RBR
attractive/JJ
when/WRB
prices/NNS
are/VBP
falling/VBG
(/(
or/CC
rising/VBG
slowly/RB
)/)
./.
But/CC
the/DT
two/CD
groups/NNS
have/VBP
something/NN
very/RB
important/JJ
in/IN
common/JJ
:/:
They/PRP
are/VBP
both/DT
havens/NNS
for/IN
scared/JJ
money/NN
,/,
stocks/NNS
for/IN
people/NNS
who/WP
hate/VBP
stocks/NNS
./.
It/PRP
's/POS
as/IN
if/IN
investors/NNS
,/,
the/DT
past/JJ
few/JJ
days/NNS
,/,
are/VBP
betting/VBG
that/IN
something/NN
is/VBZ
going/VBG
to/TO
go/VB
wrong/JJ
--/:
even/RB
if/IN
they/PRP
do/VBP
n't/RB
know/VB
what/WP
./.
If/IN
the/DT
stock/NN
market/NN
and/CC
the/DT
economy/NN
catch/VBP
their/PRP$
breath/NN
and/CC
show/VBP
that/IN
they/PRP
're/VBP
on/IN
firmer/JJR
footing/NN
,/,
these/DT
stocks/NNS
might/MD
well/RB
fall/VB
back/RB
./.
Indeed/RB
,/,
that/DT
happened/VBD
to/TO
some/DT
extent/NN
yesterday/NN
,/,
as/IN
industrial/JJ
stocks/NNS
rebounded/VBD
,/,
partly/RB
on/IN
news/NN
of/IN
takeovers/NNS
in/IN
the/DT
paper/NN
industry/NN
./.
Still/RB
,/,
a/DT
lot/NN
of/IN
investors/NNS
clearly/RB
have/VBP
revived/VBN
their/PRP$
interest/NN
in/IN
gold/NN
and/CC
utility/NN
shares/NNS
./.
``/``
The/DT
primary/JJ
overriding/JJ
thing/NN
is/VBZ
that/IN
people/NNS
are/VBP
frightened/JJ
,/,
''/''
says/VBZ
Martin/NNP
Sass/NNP
,/,
a/DT
New/NNP
York/NNP
money/NN
manager/NN
./.
``/``
The/DT
aftershocks/NNS
of/IN
Oct./NNP
13/CD
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
dropped/VBD
190/CD
points/NNS
''/''
Certainly/RB
,/,
the/DT
Oct./NNP
13/CD
sell-off/NN
did/VBD
n't/RB
settle/VB
any/DT
stomachs/NNS
./.
Beyond/IN
that/DT
,/,
money/NN
managers/NNS
and/CC
analysts/NNS
see/VBP
other/JJ
problems/NNS
./.
Inventories/NNS
are/VBP
creeping/VBG
up/RB
;/:
car/NN
inventories/NNS
are/VBP
already/RB
high/JJ
,/,
and/CC
big/JJ
auto/NN
makers/NNS
are/VBP
idling/VBG
plants/NNS
./.
Takeover/NN
fever/NN
has/VBZ
cooled/VBN
,/,
removing/VBG
a/DT
major/JJ
horse/NN
from/IN
the/DT
market/NN
's/POS
cart/NN
./.
Britain/NNP
's/POS
unsettled/JJ
political/JJ
scene/NN
also/RB
worries/VBZ
some/DT
investors/NNS
./.
``/``
The/DT
gyrations/NNS
in/IN
the/DT
British/JJ
government/NN
''/''
add/VB
political/JJ
uncertainty/NN
on/IN
top/NN
of/IN
high/JJ
inflation/NN
and/CC
a/DT
ragged/JJ
stock/NN
market/NN
,/,
says/VBZ
John/NNP
Hoffman/NNP
,/,
assistant/JJ
director/NN
of/IN
research/NN
at/IN
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
&/CC
Co/NNP
./.
``/``
One/CD
of/IN
the/DT
three/CD
major/JJ
markets/NNS
in/IN
the/DT
world/NN
is/VBZ
getting/VBG
chewed/VBD
up/RP
pretty/RB
bad/RB
./.
''/''
``/``
If/IN
the/DT
Fed/NNP
does/VBZ
not/RB
come/VBN
to/TO
the/DT
rescue/NN
and/CC
produce/VB
lower/JJR
short-term/JJ
interest/NN
rates/NNS
over/IN
the/DT
next/JJ
30/CD
days/NNS
,/,
the/DT
market/NN
's/VBZ
going/VBG
to/TO
flounder/VB
,/,
''/''
says/VBZ
Larry/NNP
Wachtel/NNP
,/,
a/DT
market/NN
analyst/NN
with/IN
Prudential-Bache/NNP
Securities/NNP
./.
With/IN
this/DT
sort/NN
of/IN
sentiment/NN
common/JJ
,/,
it/PRP
's/VBZ
natural/JJ
for/IN
investors/NNS
to/TO
seek/VB
out/RP
``/``
defensive/JJ
''/''
investments/NNS
./.
Utilities/NNS
are/VBP
a/DT
classic/JJ
example/NN
:/:
Even/RB
in/IN
recessions/NNS
,/,
people/NNS
continue/VBP
to/TO
use/VB
electric/JJ
power/NN
,/,
water/NN
and/CC
gas/NN
at/IN
a/DT
fairly/RB
steady/JJ
rate/NN
./.
Such/JJ
defensive/NN
issues/NNS
as/IN
food/NN
,/,
tobacco/NN
,/,
and/CC
drug/NN
stocks/NNS
have/VBP
been/VBN
in/IN
favor/NN
for/IN
some/DT
time/NN
./.
But/CC
many/JJ
of/IN
these/DT
stocks/NNS
have/VBP
now/RB
become/VBN
expensive/JJ
./.
Mr./NNP
Wachtel/NNP
points/NNS
to/TO
Coca-Cola/NNP
Co./NNP
and/CC
PepsiCo/NNP
Inc./NNP
as/IN
examples/NNS
:/:
They/PRP
're/VBP
selling/VBG
for/IN
18/CD
to/TO
22/CD
times/NNS
estimated/JJ
1990/CD
per-share/JJ
earnings/NNS
./.
Gold/NN
stocks/NNS
are/VBP
n't/RB
cheap/JJ
on/IN
this/DT
basis/NN
,/,
either/RB
,/,
with/IN
many/JJ
selling/VBG
for/IN
20/CD
times/NNS
earnings/NNS
or/CC
more/JJR
./.
Even/RB
utility/NN
stocks/NNS
are/VBP
n't/RB
all/RB
that/RB
inexpensive/JJ
,/,
at/IN
an/DT
average/NN
of/IN
14/CD
times/NNS
earnings/NNS
./.
But/CC
the/DT
two/CD
groups/NNS
represent/VBP
a/DT
further/JJ
step/NN
in/IN
defensiveness/NN
./.
If/IN
gold/JJ
stocks/NNS
and/CC
utilities/NNS
continue/VBP
to/TO
lead/VB
,/,
it/PRP
may/MD
signal/VB
that/IN
the/DT
market/NN
is/VBZ
in/IN
for/IN
rough/JJ
times/NNS
./.
That/DT
's/VBZ
just/RB
what/WP
Joseph/NNP
Granville/NNP
expects/VBZ
./.
``/``
We/PRP
are/VBP
going/VBG
to/TO
explode/VB
lower/JJR
,/,
''/''
says/VBZ
the/DT
flamboyant/JJ
market/NN
seer/NN
,/,
who/WP
had/VBD
a/DT
huge/JJ
following/NN
a/DT
few/JJ
years/NNS
back/RB
./.
``/``
Anyone/NN
telling/VBG
you/PRP
to/TO
buy/VB
stocks/NNS
in/IN
this/DT
market/NN
is/VBZ
technically/RB
irresponsible/JJ
./.
You/PRP
do/VBP
n't/RB
want/VB
to/TO
own/VB
anything/NN
long/RB
except/IN
gold/NN
stocks/NNS
./.
''/''
One/CD
reason/NN
for/IN
his/PRP$
gloom/NN
is/VBZ
a/DT
weekly/JJ
tally/NN
he/PRP
keeps/VBZ
of/IN
stocks/NNS
within/IN
a/DT
point/NN
of/IN
hitting/VBG
new/JJ
highs/NNS
or/CC
lows/NNS
./.
Last/JJ
Friday/NNP
,/,
96/CD
stocks/NNS
on/IN
the/DT
Big/NNP
Board/NNP
hit/VBD
new/JJ
12-month/JJ
lows/NNS
./.
But/CC
by/IN
Mr./NNP
Granville/NNP
's/POS
count/NN
,/,
493/CD
issues/NNS
were/VBD
within/IN
one/CD
point/NN
of/IN
such/JJ
lows/NNS
./.
Robert/NNP
Stovall/NNP
,/,
a/DT
veteran/JJ
New/NNP
York/NNP
money/NN
manager/NN
and/CC
president/NN
of/IN
Stovall\/Twenty-First/NNP
Securities/NNP
,/,
has/VBZ
money/NN
in/IN
both/CC
gold/NN
and/CC
utility/NN
issues/NNS
./.
``/``
I/PRP
think/VBP
we/PRP
could/MD
very/RB
well/RB
have/VB
{/(
an/DT
economic/JJ
slowdown/NN
,/,
beginning/VBG
very/RB
soon/RB
if/IN
not/RB
already/RB
,/,
''/''
he/PRP
says/VBZ
./.
Mr./NNP
Stovall/NNP
does/VBZ
n't/RB
expect/VB
an/DT
actual/JJ
recession/NN
./.
But/CC
he/PRP
does/VBZ
expect/VB
``/``
a/DT
muffler/NN
dragger/NN
''/''
of/IN
an/DT
economy/NN
,/,
with/IN
``/``
very/RB
slow/JJ
growth/NN
,/,
maybe/RB
one/CD
quarter/NN
of/IN
no/DT
growth/NN
at/IN
all/DT
./.
''/''
In/IN
such/PDT
a/DT
climate/NN
,/,
utility/NN
stocks/NNS
look/VBP
good/JJ
to/TO
him/PRP
./.
He/PRP
favors/VBZ
FPL/NNP
Group/NNP
Inc./NNP
,/,
Florida/NNP
Progress/NNP
Corp./NNP
,/,
TECO/NNP
Energy/NNP
Inc./NNP
,/,
Wisconsin/NNP
Energy/NNP
Corp./NNP
,/,
and/CC
Dominion/NNP
Resources/NNP
Inc/NNP
./.
The/DT
appeal/NN
of/IN
gold/NN
issues/NNS
,/,
Mr./NNP
Stovall/NNP
says/VBZ
,/,
is/VBZ
that/IN
``/``
they/PRP
're/VBP
a/DT
counter/JJ
group/NN
./.
You/PRP
go/VBP
into/IN
them/PRP
because/IN
they/PRP
move/VBP
counter/RB
to/TO
the/DT
general/JJ
market/NN
./.
''/''
He/PRP
adds/VBZ
that/IN
gold/NN
stocks/NNS
had/VBD
been/VBN
down/RB
so/RB
long/RB
they/PRP
were/VBD
``/``
ready/JJ
for/IN
a/DT
bounce/NN
./.
''/''
His/PRP$
favorites/NNS
are/VBP
American/NNP
Barrick/NNP
Resources/NNP
Corp./NNP
,/,
Echo/NNP
Bay/NNP
Mines/NNP
Ltd./NNP
and/CC
Coeur/NNP
d'Alene/NNP
Mines/NNP
Corp/NNP
./.
Nevertheless/RB
,/,
Mr./NNP
Stovall/NNP
emphasizes/VBZ
that/IN
``/``
you/PRP
do/VBP
n't/RB
buy/VB
{/(
gold/NN
stocks/NNS
powerful/JJ
fundamentals/NNS
./.
''/''
In/IN
addition/NN
to/TO
having/VBG
high/JJ
price-earnings/JJ
ratios/NNS
,/,
most/JJS
pay/VBP
puny/JJ
dividends/NNS
,/,
if/IN
any/DT
./.
``/``
The/DT
earning/NN
power/NN
gold/NN
mining/NN
companies/NNS
the/DT
gold/NN
price/NN
hops/VBZ
up/IN
over/IN
$/$
425/CD
an/DT
ounce/NN
,/,
''/''
he/PRP
says/VBZ
./.
Abby/NNP
Cohen/NNP
,/,
an/DT
investment/NN
strategist/NN
for/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
,/,
also/RB
thinks/VBZ
it/PRP
makes/VBZ
sense/NN
to/TO
have/VB
some/DT
money/NN
in/IN
both/CC
utilities/NNS
and/CC
gold/NN
./.
``/``
My/PRP$
outlook/NN
is/VBZ
for/IN
a/DT
decline/NN
of/IN
about/RB
10/CD
%/NN
in/IN
corporate/JJ
profits/NNS
''/''
in/IN
1990/CD
,/,
she/PRP
says/VBZ
./.
But/CC
``/``
a/DT
bunch/NN
of/IN
utilities/NNS
''/''
should/MD
post/VB
profit/NN
increases/NNS
./.
Among/IN
utilities/NNS
,/,
Drexel/NNP
currently/RB
favors/VBZ
Entergy/NNP
Corp./NNP
and/CC
General/NNP
Public/NNP
Utilities/NNP
Corp/NNP
./.
As/IN
for/IN
gold/NN
,/,
she/PRP
notes/VBZ
that/IN
it/PRP
usually/RB
rises/VBZ
when/WRB
the/DT
dollar/NN
is/VBZ
weak/JJ
,/,
as/IN
it/PRP
has/VBZ
been/VBN
lately/RB
./.
Among/IN
gold/JJ
stocks/NNS
,/,
Drexel/NNP
likes/VBZ
Battle/NNP
Mountain/NNP
Gold/NNP
Co./NNP
,/,
Newmont/NNP
Gold/NNP
Co./NNP
and/CC
Freeport-McMoRan/NNP
Gold/NNP
Co/NNP
./.
It/PRP
never/RB
ceases/VBZ
to/TO
amaze/VB
me/PRP
how/WRB
the/DT
business/NN
world/NN
continues/VBZ
to/TO
trivialize/VB
the/DT
world/NN
's/POS
environmental/JJ
problems/NNS
``/``
Is/VBZ
Science/NN
,/,
or/CC
Private/JJ
Gain/NN
,/,
Driving/VBG
Ozone/NN
Policy/NN
?/.
''/''
by/IN
George/NNP
Melloan/NNP
,/,
Business/NNP
World/NNP
,/,
Oct./NNP
24/CD
To/TO
suggest/VB
that/IN
a/DT
10/CD
%/NN
drop/NN
in/IN
ozone/NN
by/IN
the/DT
middle/NN
of/IN
the/DT
next/JJ
century/NN
would/MD
be/VB
negligible/JJ
is/VBZ
irresponsible/JJ
and/CC
shortsighted/JJ
./.
Consider/VB
the/DT
fact/NN
that/IN
a/DT
mere/JJ
2/CD
%/NN
drop/NN
in/IN
ozone/NN
would/MD
increase/VB
birth/NN
defects/NNS
and/CC
mutations/NNS
by/IN
allowing/VBG
solar/JJ
radiation/NN
to/TO
alter/VB
the/DT
DNA/NN
structure/NN
./.
Even/RB
a/DT
small/JJ
reduction/NN
is/VBZ
unacceptable/JJ
and/CC
to/TO
suggest/VB
otherwise/RB
is/VBZ
penny-wise/JJ
and/CC
pound-foolish/JJ
./.
The/DT
reason/NN
environmentalists/NNS
``/``
do/VBP
n't/RB
mind/VB
seeing/VBG
new/JJ
crises/NNS
arise/VB
''/''
is/VBZ
because/IN
there/EX
are/VBP
new/JJ
crises/NNS
./.
Crises/NNS
larger/JJR
and/CC
more/RBR
dangerous/JJ
to/TO
the/DT
quality/NN
of/IN
life/NN
than/IN
they/PRP
were/VBD
10/CD
years/NNS
ago/RB
./.
If/IN
you/PRP
are/VBP
doubtful/JJ
,/,
consider/VB
for/IN
a/DT
moment/NN
that/IN
the/DT
Pomton/NNP
Lakes/NNP
Reservoirs/NNP
in/IN
northern/JJ
New/NNP
Jersey/NNP
,/,
which/WDT
supply/VBP
the/DT
tristate/JJ
area/NN
with/IN
drinking/NN
water/NN
,/,
are/VBP
riddled/JJ
with/IN
toxic/JJ
PCBs/NNS
./.
This/DT
is/VBZ
a/DT
fact/NN
and/CC
not/RB
the/DT
product/NN
of/IN
some/DT
environmental/JJ
doomsayer/NN
or/CC
a/DT
group/NN
's/POS
ploy/NN
to/TO
create/VB
a/DT
market/NN
./.
It/PRP
's/POS
time/NN
business/NN
leaders/NNS
and/CC
the/DT
general/JJ
public/NN
learn/VBP
that/IN
mankind/NN
does/VBZ
not/RB
rule/VB
over/IN
this/DT
natural/JJ
environment/NN
but/CC
is/VBZ
rather/RB
the/DT
integral/JJ
,/,
symbiotic/JJ
player/NN
within/IN
nature/NN
's/POS
workings/NNS
./.
Mark/NNP
T./NNP
Kuiper/NNP
Jersey/NNP
City/NNP
,/,
N.J/NNP
./.
Mr./NNP
Melloan/NNP
's/POS
column/NN
was/VBD
right/RB
on/IN
the/DT
money/NN
,/,
but/CC
I/PRP
wish/VBP
it/PRP
could/MD
have/VB
gone/VBN
one/CD
step/NN
further/RBR
./.
As/IN
an/DT
employee/NN
of/IN
a/DT
major/JJ
refrigerator/NN
and/CC
freezer/NN
manufacturer/NN
,/,
I/PRP
have/VBP
been/VBN
heavily/RB
involved/VBN
in/IN
dealing/VBG
with/IN
the/DT
political/JJ
manifestations/NNS
of/IN
the/DT
Rowland-Molina/NNP
theory/NN
the/DT
researchers/NNS
who/WP
found/VBD
in/IN
1974/CD
that/IN
chlorofluorocarbons/NNS
contributed/VBD
to/TO
the/DT
depletion/NN
of/IN
ozone/NN
in/IN
the/DT
earth/NN
's/POS
atmosphere/NN
the/DT
Montreal/NNP
Protocol/NNP
./.
An/DT
important/JJ
part/NN
of/IN
my/PRP$
effort/NN
has/VBZ
been/VBN
to/TO
understand/VB
the/DT
science/NN
so/IN
I/PRP
can/MD
explain/VB
it/PRP
to/TO
corporate/JJ
colleagues/NNS
facing/VBG
major/JJ
changes/NNS
in/IN
product/NN
design/NN
./.
In/IN
my/PRP$
research/NN
,/,
I/PRP
have/VBP
found/VBN
a/DT
paper/NN
by/IN
Joseph/NNP
Scotto/NNP
of/IN
the/DT
National/NNP
Cancer/NNP
Institute/NNP
and/CC
several/JJ
colleagues/NNS
reporting/VBG
an/DT
11-year/JJ
decrease/NN
in/IN
UV-B/NNP
radiation/NN
at/IN
eight/CD
U.S./NNP
measurement/NN
sites/NNS
./.
Our/PRP$
concern/NN
for/IN
the/DT
ozone/NN
layer/NN
,/,
of/IN
course/NN
,/,
grows/VBZ
out/IN
of/IN
the/DT
potential/NN
for/IN
increasing/VBG
UV-B/NN
radiation/NN
,/,
which/WDT
could/MD
damage/VB
flora/NNS
and/CC
fauna/NNS
./.
The/DT
last/JJ
of/IN
the/DT
measurements/NNS
reported/VBN
was/VBD
in/IN
1985/CD
,/,
but/CC
recent/JJ
conversations/NNS
with/IN
Mr./NNP
Scotto/NNP
indicated/VBD
that/IN
he/PRP
knew/VBD
of/IN
no/DT
recent/JJ
changes/NNS
in/IN
the/DT
trend/NN
./.
I/PRP
understand/VBP
,/,
but/CC
have/VBP
n't/RB
yet/RB
verified/VBN
,/,
that/IN
there/EX
are/VBP
studies/NNS
by/IN
Norwegians/NNPS
,/,
Russians/NNPS
and/CC
the/DT
Max/NNP
Planck/NNP
Institute/NNP
that/WDT
show/VBP
either/DT
unchanging/JJ
or/CC
declining/VBG
UV-B/NN
at/IN
the/DT
surface/NN
./.
To/TO
me/PRP
,/,
this/DT
calls/VBZ
into/IN
question/NN
the/DT
validity/NN
of/IN
the/DT
Rowland-Molina/NNP
theory/NN
and/CC
hence/RB
the/DT
whole/JJ
chlorofluorocarbons/NNS
replacement/NN
effort/NN
./.
This/DT
,/,
in/IN
turn/NN
,/,
threatens/VBZ
the/DT
massive/JJ
vested/JJ
interests/NNS
of/IN
which/WDT
you/PRP
have/VBP
written/VBN
./.
My/PRP$
questions/NNS
on/IN
this/DT
subject/NN
at/IN
a/DT
recent/JJ
meeting/NN
at/IN
the/DT
World/NNP
Resources/NNPS
Institute/NNP
with/IN
representatives/NNS
of/IN
the/DT
National/NNP
Resource/NNP
Development/NNP
Commission/NNP
,/,
the/DT
Environmental/NNP
Protection/NNP
Agency/NNP
,/,
Friends/NNPS
of/IN
the/DT
Earth/NNP
,/,
etc./NN
were/VBD
greeted/VBN
with/IN
derision/NN
and/CC
some/DT
mumbled/VBN
comments/NNS
about/IN
that/DT
report/NN
being/VBG
discredited/VBN
./.
When/WRB
I/PRP
expressed/VBD
amazement/NN
that/IN
no/DT
one/NN
was/VBD
undertaking/VBG
a/DT
more/RBR
current/JJ
and/CC
credible/JJ
UV-B/NN
study/NN
,/,
I/PRP
was/VBD
urged/VBN
to/TO
get/VB
back/RB
to/TO
the/DT
agenda/NN
topic/NN
,/,
which/WDT
was/VBD
,/,
ironically/RB
,/,
a/DT
schedule/NN
for/IN
getting/VBG
rid/JJ
of/IN
HCFCs/NNS
,/,
the/DT
so-called/JJ
soft/JJ
CFCs/NNS
that/WDT
are/VBP
such/PDT
an/DT
important/JJ
part/NN
of/IN
the/DT
CFC/NNP
substitution/NN
scenario/NN
./.
Subsequently/NNP
,/,
I/PRP
have/VBP
learned/VBN
that/IN
a/DT
private/JJ
group/NN
,/,
of/IN
which/WDT
Du/NNP
Pont/NNP
is/VBZ
a/DT
part/NN
,/,
is/VBZ
funding/VBG
a/DT
modest/JJ
program/NN
to/TO
continue/VB
data/NNS
gathering/NN
at/IN
the/DT
Scotto/NNP
report/NN
stations/NNS
as/RB
well/RB
as/IN
to/TO
develop/VB
more/RBR
sophisticated/JJ
UVB/NN
measuring/NN
instruments/NNS
./.
But/CC
this/DT
is/VBZ
almost/RB
an/DT
underground/JJ
activity/NN
./.
To/TO
my/PRP$
knowledge/NN
,/,
no/DT
government/NN
entities/NNS
,/,
including/VBG
the/DT
EPA/NNP
,/,
are/VBP
pursuing/VBG
UV-B/NN
measurements/NNS
./.
The/DT
topic/NN
never/RB
comes/VBZ
up/RP
in/IN
ozonedepletion/NN
``/``
establishment/NN
''/''
meetings/NNS
,/,
of/IN
which/WDT
I/PRP
have/VBP
attended/VBN
many/JJ
./.
It/PRP
seems/VBZ
to/TO
me/PRP
that/IN
such/JJ
measurements/NNS
are/VBP
a/DT
vital/JJ
part/NN
of/IN
any/DT
intellectually/RB
honest/JJ
evaluation/NN
of/IN
the/DT
threat/NN
posed/VBN
by/IN
CFCs/NNS
./.
While/IN
recognizing/VBG
that/IN
professional/JJ
environmentalists/NNS
may/MD
feel/VB
threatened/JJ
,/,
I/PRP
intend/VBP
to/TO
urge/VB
that/IN
UV-B/JJ
be/VB
monitored/VBN
whenever/WRB
I/PRP
can/MD
./.
Frederick/NNP
H./NNP
Hallett/NNP
Vice/NNP
President/NNP
Industry/NNP
and/CC
Government/NNP
Relations/NNP
White/NNP
Consolidated/NNP
Industries/NNP
Inc/NNP
./.
Washington/NNP
The/DT
relationship/NN
between/IN
surface/NN
release/NN
of/IN
CFCs/NNS
and/CC
global/JJ
stratospheric/JJ
ozone/NN
loss/NN
was/VBD
identified/VBN
back/RB
in/IN
1974/CD
./.
Although/IN
,/,
like/IN
all/DT
scientific/JJ
theories/NNS
,/,
it/PRP
had/VBD
its/PRP$
initial/JJ
opponents/NNS
,/,
few/JJ
experts/NNS
question/VBP
the/DT
connection/NN
now/RB
./.
The/DT
discovery/NN
of/IN
the/DT
ozone/NN
``/``
hole/NN
''/''
over/IN
Antarctica/NNP
and/CC
the/DT
results/NNS
of/IN
ground-based/JJ
and/CC
high-altitude/JJ
aircraft/NN
experiments/NNS
conducted/VBN
over/IN
the/DT
past/JJ
several/JJ
years/NNS
serve/VBP
as/IN
evidence/NN
that/IN
ozone/NN
depletion/NN
is/VBZ
related/VBN
to/TO
CFC/NNP
concentrations/NNS
./.
In/IN
the/DT
September/NNP
issue/NN
of/IN
Scientific/NNP
American/NNP
,/,
Thomas/NNP
E./NNP
Graedel/NNP
,/,
distinguished/JJ
member/NN
of/IN
the/DT
technical/JJ
staff/NN
at/IN
AT&T/NNP
Bell/NNP
Laboratories/NNPS
,/,
and/CC
Paul/NNP
J./NNP
Crutzen/NNP
,/,
director/NN
of/IN
the/DT
air/NN
chemistry/NN
division/NN
of/IN
the/DT
Max/NNP
Planck/NNP
Institute/NNP
for/IN
Chemistry/NNP
in/IN
Mainz/NNP
,/,
West/NNP
Germany/NNP
,/,
wrote/VBD
,/,
``/``
It/PRP
is/VBZ
now/RB
quite/RB
evident/JJ
that/IN
chlorofluorocarbons/NNS
,/,
particularly/RB
CFC-11/NN
and/CC
CFC-12/NN
are/VBP
the/DT
major/JJ
culprits/NNS
responsible/JJ
for/IN
ozone/NN
depletion/NN
./.
''/''
Mr./NNP
Melloan/NNP
quotes/VBZ
Peter/NNP
Teagan/NNP
and/CC
invokes/VBZ
the/DT
name/NN
of/IN
Arthur/NNP
D./NNP
Little/NNP
Inc./NNP
to/TO
support/VB
his/PRP$
statement/NN
./.
However/RB
,/,
unlike/IN
Messrs./NNPS
Graedel/NNP
and/CC
Crutzen/NNP
,/,
who/WP
are/VBP
both/DT
pioneers/NNS
in/IN
the/DT
study/NN
of/IN
atmospheric/JJ
chemistry/NN
,/,
Mr./NNP
Teagan/NNP
has/VBZ
no/DT
special/JJ
expertise/NN
in/IN
the/DT
area/NN
./.
He/PRP
is/VBZ
a/DT
mechanical/JJ
engineer/NN
,/,
not/RB
an/DT
atmospheric/JJ
chemist/NN
./.
It/PRP
is/VBZ
insulting/JJ
and/CC
demeaning/JJ
to/TO
say/VB
that/IN
scientists/NNS
``/``
needed/VBD
new/JJ
crises/NNS
to/TO
generate/VB
new/JJ
grants/NNS
and/CC
contracts/NNS
''/''
and/CC
that/IN
environmental/JJ
groups/NNS
need/VBP
them/PRP
to/TO
stay/VB
in/IN
business/NN
./.
Solving/VBG
the/DT
global/JJ
environmental/JJ
problems/NNS
we/PRP
all/DT
face/VBP
will/MD
require/VB
an/DT
unprecedented/JJ
level/NN
of/IN
cooperation/NN
and/CC
communication/NN
among/IN
industry/NN
,/,
policy/NN
makers/NNS
and/CC
the/DT
scientific/JJ
community/NN
world-wide/RB
./.
Karen/NNP
Fine/NNP
Coburn/NNP
Publisher/NN
Global/NNP
Environmental/NNP
Change/NNP
Report/NNP
Arlington/NNP
,/,
Mass/NNP
./.
Nearly/RB
two/CD
months/NNS
after/IN
saying/VBG
it/PRP
had/VBD
been/VBN
the/DT
victim/NN
of/IN
widespread/JJ
fraud/NN
,/,
MiniScribe/NNP
Corp./NNP
disclosed/VBD
it/PRP
had/VBD
a/DT
negative/JJ
net/JJ
worth/NN
of/IN
$/$
88/CD
million/CD
as/IN
of/IN
July/NNP
2/CD
and/CC
hinted/VBD
that/IN
it/PRP
might/MD
be/VB
forced/VBN
to/TO
file/VB
for/IN
protection/NN
under/IN
bankruptcy/NN
laws/NNS
./.
Richard/NNP
Rifenburgh/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/NN
of/IN
the/DT
Longmont/NNP
,/,
Colo./NNP
,/,
disk-drive/NN
maker/NN
,/,
also/RB
said/VBD
the/DT
company/NN
continued/VBD
losing/VBG
money/NN
in/IN
the/DT
third/JJ
quarter/NN
and/CC
expects/VBZ
to/TO
sustain/VB
further/JJ
losses/NNS
through/IN
the/DT
end/NN
of/IN
the/DT
year/NN
./.
Mr./NNP
Rifenburgh/NNP
told/VBD
industry/NN
analysts/NNS
he/PRP
is/VBZ
moving/VBG
``/``
aggressively/RB
''/''
to/TO
negotiate/VB
out-of-court/JJ
settlements/NNS
on/IN
a/DT
number/NN
of/IN
shareholder/NN
lawsuits/NNS
,/,
but/CC
noted/VBD
that/IN
the/DT
company/NN
could/MD
file/VB
for/IN
bankruptcy-law/NN
protection/NN
if/IN
settlement/NN
talks/NNS
fail/VBP
./.
Mr./NNP
Rifenburgh/NNP
also/RB
noted/VBD
that/IN
150/CD
million/CD
shares/NNS
of/IN
MiniScribe/NNP
common/JJ
stock/NN
were/VBD
traded/VBN
during/IN
the/DT
past/JJ
three/CD
years/NNS
,/,
``/``
so/IN
there/EX
's/VBZ
a/DT
tremendous/JJ
amount/NN
of/IN
exposure/NN
./.
''/''
MiniScribe/NNP
has/VBZ
said/VBD
that/IN
its/PRP$
financial/JJ
results/NNS
for/IN
the/DT
past/JJ
three/CD
fiscal/NN
years/NNS
would/MD
have/VB
to/TO
be/VB
restated/VBN
because/RB
of/IN
the/DT
allegedly/RB
fraudulent/JJ
accounting/NN
and/CC
marketing/NN
practices/NNS
that/IN
inflated/VBD
revenues/NNS
and/CC
net/JJ
income/NN
./.
MiniScribe/NNP
also/RB
has/VBZ
n't/RB
filed/VBN
any/DT
financial/JJ
statements/NNS
for/IN
1989/CD
./.
Mr./NNP
Rifenburgh/NNP
said/VBD
such/JJ
statements/NNS
should/MD
be/VB
ready/JJ
by/IN
the/DT
end/NN
of/IN
November/NNP
./.
He/PRP
said/VBD
he/PRP
expects/VBZ
the/DT
company/NN
to/TO
have/VB
$/$
500/CD
million/CD
in/IN
sales/NNS
for/IN
this/DT
year/NN
./.
He/PRP
did/VBD
n't/RB
say/VB
what/WP
the/DT
company/NN
expected/VBD
to/TO
report/VB
for/IN
year-earlier/JJ
sales/NNS
,/,
which/WDT
will/MD
be/VB
restated/VBN
from/IN
the/DT
previously/RB
reported/VBN
$/$
603/CD
million/CD
./.
The/DT
release/NN
of/IN
MiniScribe/NNP
's/POS
new/JJ
balance/NN
sheet/NN
came/VBD
one/CD
day/NN
after/IN
it/PRP
introduced/VBD
its/PRP$
new/JJ
line/NN
of/IN
one-inch/JJ
disk/NN
drives/NNS
,/,
on/IN
which/WDT
it/PRP
is/VBZ
pinning/VBG
much/JJ
of/IN
its/PRP$
hope/NN
for/IN
survival/NN
./.
Although/IN
it/PRP
is/VBZ
not/RB
the/DT
first/JJ
company/NN
to/TO
produce/VB
the/DT
thinner/JJR
drives/NNS
,/,
which/WDT
store/VBP
information/NN
in/IN
personal/JJ
computers/NNS
,/,
MiniScribe/NNP
says/VBZ
it/PRP
is/VBZ
the/DT
first/JJ
with/IN
an/DT
80-megabyte/JJ
drive/NN
;/:
the/DT
company/NN
plans/VBZ
to/TO
introduce/VB
a/DT
120-megabyte/JJ
drive/NN
next/JJ
year/NN
./.
Analysts/NNS
and/CC
consultants/NNS
had/VBD
mixed/JJ
reactions/NNS
to/TO
yesterday/NN
's/POS
announcements/NNS
,/,
praising/VBG
Mr./NNP
Rifenburgh/NNP
's/POS
efforts/NNS
but/CC
questioning/VBG
whether/IN
the/DT
company/NN
can/MD
survive/VB
in/IN
a/DT
highly/RB
competitive/JJ
marketplace/NN
./.
``/``
It/PRP
's/VBZ
a/DT
wait-and-see/JJ
attitude/NN
,/,
''/''
said/VBD
Dave/NNP
Vellante/NNP
,/,
vice/NN
president/NN
of/IN
storage/NN
research/NN
for/IN
International/NNP
Data/NNP
Corp/NNP
./.
Others/NNS
pointed/VBD
out/RP
that/IN
at/IN
least/JJS
four/CD
other/JJ
disk-drive/NN
makers/NNS
will/MD
have/VB
competitive/JJ
one-inch/JJ
drives/NNS
early/RB
next/JJ
year/NN
and/CC
that/IN
the/DT
industry/NN
already/RB
operates/VBZ
on/IN
very/RB
thin/JJ
margins/NNS
./.
The/DT
company/NN
also/RB
faces/VBZ
delisting/NN
by/IN
the/DT
National/NNP
Association/NNP
of/IN
Securities/NNPS
Dealers/NNPS
./.
The/DT
company/NN
continues/VBZ
to/TO
trade/VB
in/IN
the/DT
over-the-counter/JJ
market/NN
with/IN
an/DT
exception/NN
to/TO
listing/NN
requirements/NNS
./.
MiniScribe/NNP
filed/VBD
a/DT
status/NN
report/NN
with/IN
the/DT
NASD/NNP
on/IN
Monday/NNP
,/,
detailing/VBG
its/PRP$
efforts/NNS
to/TO
comply/VB
with/IN
listing/NN
requirements/NNS
and/CC
requesting/VBG
an/DT
extension/NN
of/IN
the/DT
exception/NN
,/,
but/CC
has/VBZ
n't/RB
received/VBD
a/DT
response/NN
./.
MiniScribe/NNP
common/JJ
closed/VBD
yesterday/NN
at/IN
$/$
1.9375/CD
,/,
down/RB
6.25/CD
cents/NNS
,/,
and/CC
has/VBZ
been/VBN
trading/VBG
for/IN
several/JJ
months/NNS
at/IN
less/JJR
than/IN
$/$
3/CD
a/DT
share/NN
./.
Meanwhile/RB
,/,
U.S./NNP
Attorney/NNP
Jerry/NNP
Rafferty/NNP
in/IN
Denver/NNP
is/VBZ
reviewing/VBG
the/DT
report/NN
prepared/VBN
by/IN
MiniScribe/NNP
's/POS
outside/JJ
directors/NNS
,/,
to/TO
determine/VB
if/IN
criminal/JJ
charges/NNS
should/MD
be/VB
brought/VBN
before/IN
a/DT
grand/JJ
jury/NN
./.
The/DT
MiniScribe/NNP
report/NN
outlines/VBZ
a/DT
host/NN
of/IN
allegedly/RB
fraudulent/JJ
practices/NNS
,/,
including/VBG
the/DT
shipment/NN
of/IN
bricks/NNS
and/CC
defective/JJ
disk/NN
drives/NNS
that/WDT
were/VBD
booked/VBN
as/IN
sales/NNS
,/,
and/CC
inventory/NN
forgeries/NNS
in/IN
accounting/NN
records/NNS
./.
The/DT
internal/JJ
investigation/NN
also/RB
criticized/VBD
MiniScribe/NNP
's/POS
auditors/NNS
,/,
Coopers/NNP
&/CC
Lybrand/NNP
,/,
for/IN
allegedly/RB
ignoring/VBG
numerous/JJ
red/JJ
flags/NNS
./.
Mr./NNP
Rifenburgh/NNP
said/VBD
the/DT
board/NN
still/RB
has/VBZ
n't/RB
acted/VBN
on/IN
most/JJS
of/IN
the/DT
internal/JJ
report/NN
's/POS
recommendations/NNS
,/,
pending/VBG
restatement/NN
of/IN
the/DT
balance/NN
sheet/NN
./.
He/PRP
added/VBD
that/IN
he/PRP
expects/VBZ
to/TO
make/VB
a/DT
recommendation/NN
within/IN
a/DT
few/JJ
weeks/NNS
on/IN
whether/IN
MiniScribe/NNP
should/MD
file/VB
its/PRP$
own/JJ
lawsuits/NNS
against/IN
former/JJ
company/NN
officers/NNS
and/CC
directors/NNS
./.
American/NNP
Enterprise/NNP
Institute/NNP
scholar/NN
Norman/NNP
Ornstein/NNP
in/IN
the/DT
Oct./NNP
21/CD
TV/NNP
Guide/NNP
on/IN
``/``
What/WP
TV/NN
News/NN
Does/VBZ
n't/RB
Report/VB
About/IN
Congress/NNP
--/:
and/CC
Should/MD
''/''
:/:
By/IN
concentrating/VBG
all/PDT
their/PRP$
resources/NNS
on/IN
the/DT
pay/NN
raise/NN
,/,
Wright/NNP
and/CC
Tower/NNP
,/,
the/DT
networks/NNS
actually/RB
overlooked/VBD
some/DT
major/JJ
stories/NNS
that/WDT
showed/VBD
the/DT
flaws/NNS
and/CC
shortcomings/NNS
of/IN
the/DT
institution/NN
.../:
./.
An/DT
imaginative/JJ
producer/NN
could/MD
easily/RB
have/VB
created/VBN
a/DT
fast-moving/JJ
and/CC
interesting/JJ
piece/NN
about/IN
how/WRB
Congress/NNP
really/RB
works/VBZ
--/:
and/CC
why/WRB
voters/NNS
in/IN
,/,
say/UH
,/,
West/NNP
Virginia/NNP
got/VBD
a/DT
federally/RB
funded/JJ
university/NN
project/NN
and/CC
building/NN
while/IN
voters/NNS
in/IN
Arkansas/NNS
did/VBD
not/RB
./.
But/CC
nobody/NN
did/VBD
such/PDT
a/DT
piece/NN
,/,
reflecting/VBG
a/DT
contemporary/JJ
axiom/NN
:/:
the/DT
more/RBR
a/DT
scandal/NN
has/VBZ
to/TO
do/VB
with/IN
a/DT
congressman/NN
's/POS
duties/NNS
as/IN
a/DT
congressman/NN
,/,
the/DT
less/RBR
likely/JJ
it/PRP
is/VBZ
to/TO
catch/VB
the/DT
fancy/NN
of/IN
a/DT
network/NN
./.
Ethicist/NN
Michael/NNP
Josephson/NNP
,/,
in/IN
one/CD
of/IN
his/PRP$
institute/NN
's/POS
recent/JJ
publications/NNS
on/IN
``/``
Journalism/NN
:/:
In/IN
the/DT
Year/NN
2000/CD
''/''
:/:
The/DT
operative/JJ
definition/NN
of/IN
newsworthiness/NN
will/MD
favor/VB
virtually/RB
unrestrained/JJ
use/NN
of/IN
personal/JJ
,/,
sensitive/JJ
and/CC
intimate/JJ
facts/NNS
./.
Traditional/JJ
standards/NNS
of/IN
relevancy/NN
and/CC
importance/NN
``/``
is/NNS
this/DT
something/NN
the/DT
public/NN
ought/MD
to/TO
know/VB
''/''
)/)
will/MD
be/VB
replaced/VBN
by/IN
a/DT
much/RB
broader/JJR
test/NN
``/``
is/NNS
this/DT
something/NN
the/DT
public/NN
is/VBZ
interested/JJ
in/IN
knowing/VBG
''/''
)/)
./.
And/CC
,/,
since/IN
the/DT
public/NN
has/VBZ
always/RB
been/VBN
fascinated/VBN
by/IN
gossip/NN
and/CC
voyeurism/NN
,/,
reporters/NNS
and/CC
editors/NNS
will/MD
strain/VB
for/IN
creative/JJ
angles/NNS
to/TO
justify/VB
the/DT
inclusion/NN
of/IN
collateral/JJ
facts/NNS
about/IN
private/JJ
lives/NNS
including/VBG
sexual/JJ
activities/NNS
and/CC
domestic/JJ
relationships/NNS
,/,
activities/NNS
of/IN
family/NN
members/NNS
,/,
and/CC
all/DT
matters/NNS
about/IN
mental/JJ
and/CC
physical/JJ
health/NN
./.
Similarly/RB
,/,
visual/JJ
images/NNS
will/MD
be/VB
more/RBR
vivid/JJ
,/,
sensational/JJ
and/CC
,/,
sometimes/RB
,/,
gruesome/JJ
./.
One/CD
consequence/NN
of/IN
the/DT
trend/NN
toward/IN
tabloid/JJ
standards/NNS
of/IN
taste/NN
will/MD
be/VB
fierce/JJ
attacks/NNS
from/IN
politicians/NNS
who/WP
will/MD
find/VB
sufficient/JJ
evidence/NN
of/IN
abuse/NN
to/TO
arouse/VB
an/DT
already/RB
cynical/JJ
public/NN
to/TO
control/VB
the/DT
press/NN
./.
Bankers/NNPS
Trust/NNP
New/NNP
York/NNP
Corp./NNP
won/VBD
permission/NN
from/IN
the/DT
Federal/NNP
Reserve/NNP
Board/NNP
to/TO
move/VB
the/DT
company/NN
's/POS
private/JJ
placement/NN
department/NN
to/TO
its/PRP$
fledgling/JJ
securities/NNS
subsidiary/NN
./.
The/DT
seemingly/RB
mundane/JJ
action/NN
,/,
which/WDT
was/VBD
opposed/VBN
by/IN
the/DT
Securities/NNPS
Industry/NNP
Association/NNP
,/,
a/DT
trade/NN
group/NN
,/,
has/VBZ
important/JJ
implications/NNS
for/IN
banks/NNS
'/POS
recent/JJ
entry/NN
into/IN
the/DT
underwriting/NN
of/IN
corporate/JJ
securities/NNS
./.
The/DT
Fed/NNP
's/POS
action/NN
increases/VBZ
the/DT
volume/NN
of/IN
publicly/RB
registered/VBN
securities/NNS
that/IN
banks/NNS
'/POS
securities/NNS
affiliates/NNS
will/MD
be/VB
able/JJ
to/TO
underwrite/VB
./.
Several/JJ
other/JJ
banks/NNS
have/VBP
similar/JJ
applications/NNS
pending/JJ
./.
Over/IN
the/DT
past/JJ
two/CD
years/NNS
,/,
the/DT
Fed/NNP
has/VBZ
given/VBN
a/DT
handful/NN
of/IN
banks/NNS
'/POS
securities/NNS
affiliates/NNS
permission/NN
to/TO
underwrite/VB
and/CC
deal/VB
in/IN
a/DT
variety/NN
of/IN
corporate/JJ
,/,
asset-backed/JJ
and/CC
municipal/JJ
securities/NNS
that/WDT
had/VBD
previously/RB
been/VBN
the/DT
sole/JJ
domain/NN
of/IN
securities/NNS
firms/NNS
./.
Securities/NNS
firms/NNS
have/VBP
challenged/VBN
those/DT
Fed/NNP
approvals/NNS
,/,
saying/VBG
they/PRP
violate/VBP
federal/JJ
laws/NNS
separating/VBG
the/DT
banking/NN
and/CC
securities/NNS
businesses/NNS
./.
However/RB
,/,
the/DT
Fed/NNP
limited/VBD
the/DT
revenue/NN
that/WDT
banks/NNS
could/MD
earn/VB
from/IN
these/DT
new/JJ
underwriting/NN
activities/NNS
to/TO
no/DT
more/JJR
than/IN
10/CD
%/NN
of/IN
the/DT
revenue/NN
earned/VBN
from/IN
other/JJ
securities/NNS
activities/NNS
long/RB
open/RB
to/TO
banks/NNS
,/,
such/JJ
as/IN
dealing/VBG
in/IN
U.S./NNP
Treasurys/NNPS
./.
For/IN
some/DT
banks/NNS
that/DT
10/CD
%/NN
ceiling/NN
created/VBD
problems/NNS
./.
But/CC
,/,
by/IN
allowing/VBG
BT/NNP
Securities/NNP
Inc./NNP
to/TO
handle/VB
private/JJ
placements/NNS
,/,
the/DT
Fed/NNP
boosted/VBD
the/DT
volume/NN
of/IN
new/JJ
types/NNS
of/IN
underwriting/NN
that/IN
the/DT
unit/NN
can/MD
do/VB
./.
Private/JJ
placements/NNS
involve/VBP
debt/NN
and/CC
equity/NN
securities/NNS
,/,
typically/RB
in/IN
denominations/NNS
of/IN
$/$
1/CD
million/CD
,/,
that/WDT
are/VBP
sold/VBN
to/TO
institutional/JJ
investors/NNS
and/CC
are/VBP
n't/RB
registered/JJ
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
./.
Last/JJ
year/NN
,/,
Bankers/NNP
Trust/NNP
said/VBD
it/PRP
placed/VBD
$/$
10/CD
billion/CD
of/IN
corporate/JJ
debt/NN
and/CC
equities/NNS
privately/RB
./.
Companies/NNS
listed/VBN
below/RB
reported/VBD
quarterly/JJ
profit/NN
substantially/RB
different/JJ
from/IN
the/DT
average/NN
of/IN
analysts/NNS
'/POS
estimates/NNS
./.
The/DT
companies/NNS
are/VBP
followed/VBN
by/IN
at/IN
least/JJS
three/CD
analysts/NNS
,/,
and/CC
had/VBD
a/DT
minimum/JJ
five-cent/JJ
change/NN
in/IN
actual/JJ
earnings/NNS
per/IN
share/NN
./.
Estimated/JJ
and/CC
actual/JJ
results/NNS
involving/VBG
losses/NNS
are/VBP
omitted/VBN
./.
The/DT
percent/NN
difference/NN
compares/VBZ
actual/JJ
profit/NN
with/IN
the/DT
30-day/JJ
estimate/NN
where/WRB
at/IN
least/JJS
three/CD
analysts/NNS
have/VBP
issues/NNS
forecasts/NNS
in/IN
the/DT
past/JJ
30/CD
days/NNS
./.
Otherwise/RB
,/,
actual/JJ
profit/NN
is/VBZ
compared/VBN
with/IN
the/DT
300-day/JJ
estimate/NN
./.
Source/NN
:/:
Zacks/NNP
Investment/NNP
Research/NNP
Bonnie/NNP
J./NNP
Stedt/NNP
was/VBD
named/VBN
an/DT
executive/JJ
vice/NN
president/NN
of/IN
the/DT
American/NNP
Express/NNP
Travel/NNP
Related/NNP
Services/NNPS
Co./NNP
unit/NN
of/IN
this/DT
travel/NN
and/CC
financial/JJ
services/NNS
firm/NN
./.
She/PRP
retains/VBZ
her/PRP$
duties/NNS
of/IN
human-resources/NNS
director/NN
./.
Joe/NNP
F./NNP
Lynch/NNP
,/,
the/DT
56-year-old/JJ
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
First/NNP
Continental/NNP
Real/NNP
Estate/NNP
Investment/NNP
Trust/NNP
,/,
was/VBD
named/VBN
to/TO
the/DT
new/JJ
post/NN
of/IN
vice/NN
chairman/NN
of/IN
this/DT
bank/NN
holding/VBG
company/NN
./.
Every/DT
workday/NN
at/IN
11/CD
a.m./RB
,/,
40-year-old/JJ
Mike/NNP
Sinyard/NNP
dons/VBZ
cycling/NN
clothes/NNS
,/,
hops/VBZ
on/IN
a/DT
bike/NN
he/PRP
keeps/VBZ
at/IN
his/PRP$
Morgan/NNP
Hill/NNP
,/,
Calif./NNP
,/,
office/NN
and/CC
sets/VBZ
out/RP
to/TO
cover/VB
a/DT
distance/NN
most/JJS
people/NNS
would/MD
travel/VB
only/RB
by/IN
car/NN
./.
As/RB
many/JJ
as/IN
50/CD
of/IN
his/PRP$
employees/NNS
at/IN
Specialized/NNP
Bicycle/NNP
Components/NNP
Inc./NNP
ride/VBP
with/IN
him/PRP
./.
When/WRB
they/PRP
return/VBP
to/TO
their/PRP$
desks/NNS
at/IN
1/CD
p.m./NN
,/,
they/PRP
have/VBP
pedaled/VBN
20/CD
miles/NNS
./.
Such/JJ
fervor/NN
for/IN
cycling/NN
helped/VBD
Mr./NNP
Sinyard/NNP
build/VB
a/DT
creative/JJ
company/NN
at/IN
the/DT
forefront/NN
of/IN
its/PRP$
industry/NN
./.
Founded/VBN
by/IN
bike/NN
enthusiasts/NNS
rather/RB
than/IN
businessmen/NNS
,/,
Specialized/NNP
spotted/VBD
the/DT
appeal/NN
of/IN
fat-tired/JJ
bikes/NNS
that/WDT
go/VBP
almost/RB
anywhere/RB
and/CC
began/VBD
mass-producing/VBG
them/PRP
in/IN
1981/CD
./.
In/IN
the/DT
past/JJ
five/CD
years/NNS
,/,
the/DT
company/NN
's/POS
sales/NNS
have/VBP
grown/VBN
to/TO
$/$
80/CD
million/CD
from/IN
$/$
26/CD
million/CD
./.
Today/NN
,/,
so-called/JJ
mountain/NN
bikes/NNS
account/VBP
for/IN
two-thirds/NNS
of/IN
the/DT
$/$
2/CD
billion/CD
spent/VBN
annually/RB
on/IN
all/DT
bicycles/NNS
in/IN
the/DT
U.S/NNP
./.
With/IN
65/CD
%/NN
of/IN
its/PRP$
sales/NNS
coming/VBG
from/IN
mountain/NN
bikes/NNS
,/,
Specialized/NNP
is/VBZ
widely/RB
considered/VBN
to/TO
be/VB
a/DT
market/NN
leader/NN
./.
Accessories/NNS
,/,
largely/RB
for/IN
mountain-bike/NN
users/NNS
,/,
account/VBP
for/IN
much/JJ
of/IN
the/DT
rest/NN
of/IN
sales/NNS
./.
But/CC
today/NN
,/,
the/DT
company/NN
needs/VBZ
its/PRP$
entrepreneurial/JJ
spirit/NN
more/RBR
than/IN
ever/RB
./.
One/CD
large/JJ
competitor/NN
after/IN
another/DT
is/VBZ
leaping/VBG
into/IN
the/DT
booming/JJ
market/NN
Specialized/NNP
helped/VBD
create/VB
,/,
turning/VBG
out/RP
mountain/NN
bikes/NNS
with/IN
such/JJ
well-known/JJ
names/NNS
as/IN
Schwinn/NNP
,/,
Peugeot/NNP
,/,
Raleigh/NNP
and/CC
Nishiki/NNP
./.
Thus/RB
,/,
Mr./NNP
Sinyard/NNP
's/POS
company/NN
must/MD
innovate/VB
more/RBR
than/IN
ever/RB
to/TO
stay/VB
ahead/RB
of/IN
them/PRP
,/,
by/IN
developing/VBG
new/JJ
products/NNS
specifically/RB
for/IN
mountain/NN
biking/NN
./.
At/IN
the/DT
same/JJ
time/NN
,/,
though/RB
,/,
it/PRP
must/MD
become/VB
more/RBR
structured/JJ
to/TO
better/RBR
manage/VB
its/PRP$
growth/NN
./.
Accomplishing/VBG
both/DT
will/MD
be/VB
a/DT
balancing/NN
act/NN
as/RB
challenging/JJ
as/IN
riding/VBG
a/DT
unicycle/NN
./.
It/PRP
is/VBZ
a/DT
problem/NN
common/JJ
to/TO
small/JJ
companies/NNS
that/WDT
have/VBP
grown/VBN
fast/RB
--/:
especially/RB
when/WRB
their/PRP$
success/NN
attracts/VBZ
big-time/JJ
competitors/NNS
./.
``/``
The/DT
big/JJ
word/NN
around/IN
Specialized/NNP
is/VBZ
passion/NN
,/,
''/''
says/VBZ
Erik/NNP
Eidsmo/NNP
,/,
a/DT
former/JJ
ski-industry/NN
executive/NN
whom/WP
Mr./NNP
Sinyard/NNP
recruited/VBD
from/IN
Citicorp/NNP
to/TO
run/VB
marketing/NN
and/CC
sales/NNS
./.
``/``
What/WP
I/PRP
hope/VBP
to/TO
bring/VB
to/TO
this/DT
is/VBZ
another/DT
word/NN
:/:
process/NN
./.
That/IN
's/POS
my/PRP$
challenge/NN
./.
It/PRP
's/VBZ
Mike/NNP
's/POS
challenge/NN
as/RB
well/RB
./.
''/''
Mr./NNP
Eidsmo/NNP
is/VBZ
one/CD
of/IN
several/JJ
key/JJ
people/NNS
from/IN
outside/IN
the/DT
cycling/NN
industry/NN
who/WP
were/VBD
hired/VBN
to/TO
bring/VB
the/DT
free-wheeling/JJ
,/,
fast-growing/JJ
company/NN
under/IN
tighter/JJR
control/NN
./.
``/``
We/PRP
had/VBD
a/DT
lot/NN
of/IN
problems/NNS
,/,
''/''
Mr./NNP
Sinyard/NNP
says/VBZ
./.
While/IN
the/DT
company/NN
's/POS
sales/NNS
were/VBD
soaring/VBG
,/,
``/``
We/PRP
still/RB
had/VBD
a/DT
system/NN
that/WDT
was/VBD
probably/RB
appropriate/JJ
for/IN
$/$
10/CD
million/CD
to/TO
$/$
20/CD
million/CD
in/IN
sales/NNS
./.
''/''
Adds/VBZ
Mr./NNP
Eidsmo/NNP
,/,
``/``
What/WP
felt/VBD
good/JJ
that/IN
day/NN
was/VBD
done/VBN
that/DT
day/NN
./.
''/''
Since/IN
his/PRP$
arrival/NN
in/IN
May/NNP
,/,
Mr./NNP
Eidsmo/NNP
has/VBZ
put/VBN
in/IN
place/NN
techniques/NNS
learned/VBN
while/IN
working/VBG
for/IN
Citicorp/NNP
,/,
such/JJ
as/IN
management-by-objective/NN
,/,
detailed/JJ
project/NN
plans/NNS
and/CC
forecasts/NNS
of/IN
company/NN
sales/NNS
and/CC
product/NN
trends/NNS
./.
``/``
We/PRP
're/VBP
finally/RB
getting/VBG
--/:
and/CC
it/PRP
's/VBZ
been/VBN
very/RB
painful/JJ
--/:
some/DT
understanding/NN
of/IN
what/WP
the/DT
company/NN
's/POS
long-term/JJ
horizon/NN
should/MD
begin/VB
to/TO
look/VB
like/IN
,/,
''/''
Mr./NNP
Eidsmo/NNP
says/VBZ
./.
``/``
But/CC
it/PRP
's/VBZ
risky/JJ
,/,
''/''
he/PRP
says/VBZ
of/IN
Specialized/NNP
's/POS
attempt/NN
to/TO
adopt/VB
a/DT
corporate/JJ
structure/NN
./.
``/``
You/PRP
do/VBP
n't/RB
want/VB
to/TO
lose/VB
the/DT
magic/NN
''/''
of/IN
the/DT
company/NN
's/POS
creative/JJ
drive/NN
./.
Hoping/VBG
to/TO
stay/VB
ahead/RB
of/IN
the/DT
pack/NN
,/,
the/DT
company/NN
is/VBZ
emphasizing/VBG
innovation/NN
./.
At/IN
a/DT
recent/JJ
trade/NN
show/NN
,/,
convention-goers/NNS
lined/VBD
up/RP
to/TO
view/VB
a/DT
new/JJ
Specialized/NNP
bike/NN
frame/NN
that/WDT
weighs/VBZ
just/RB
2.7/CD
pounds/NNS
--/:
a/DT
pound/NN
less/JJR
than/IN
the/DT
lightest/JJS
mountain-bike/NN
frame/NN
on/IN
the/DT
market/NN
./.
By/IN
replacing/VBG
the/DT
frame/NN
's/POS
steel/NN
lugs/NNS
with/IN
titanium/NN
ones/NNS
,/,
Mr./NNP
Sinyard/NNP
's/POS
company/NN
plans/VBZ
to/TO
make/VB
its/PRP$
next/JJ
generation/NN
of/IN
frames/NNS
even/RB
lighter/JJR
./.
At/IN
the/DT
trade/NN
show/NN
,/,
Specialized/NNP
also/RB
unveiled/VBD
a/DT
revolutionary/JJ
three-spoked/JJ
bike/NN
wheel/NN
developed/VBD
jointly/RB
by/IN
Specialized/NNP
and/CC
Du/NNP
Pont/NNP
Co/NNP
./.
Made/VBN
of/IN
space-age/JJ
materials/NNS
,/,
the/DT
wheel/NN
spokes/NNS
are/VBP
designed/VBN
like/IN
airplane/NN
wings/NNS
to/TO
shave/VB
10/CD
minutes/NNS
off/IN
the/DT
time/NN
of/IN
a/DT
rider/NN
in/IN
a/DT
100-mile/JJ
race/NN
,/,
the/DT
company/NN
claims/VBZ
./.
It/PRP
currently/RB
costs/VBZ
$/$
750/CD
,/,
though/IN
Mr./NNP
Sinyard/NNP
thinks/VBZ
the/DT
price/NN
can/MD
be/VB
reduced/VBN
within/IN
three/CD
years/NNS
to/TO
between/IN
$/$
200/CD
and/CC
$/$
250/CD
./.
He/PRP
was/VBD
able/JJ
to/TO
slash/VB
the/DT
price/NN
of/IN
the/DT
company/NN
's/POS
least/RBS
expensive/JJ
mountain/NN
bike/NN
to/TO
$/$
279/CD
from/IN
$/$
750/CD
in/IN
But/CC
demands/NNS
on/IN
the/DT
company/NN
's/POS
creativity/NN
are/VBP
certain/JJ
to/TO
grow/VB
./.
Competition/NN
is/VBZ
intensifying/VBG
as/RB
larger/JJR
companies/NNS
invade/VBP
a/DT
mountain-bike/NN
market/NN
Mr./NNP
Sinyard/NNP
's/POS
company/NN
once/RB
had/VBD
virtually/RB
all/RB
to/TO
itself/PRP
./.
U.S./NNP
Cycling/NNP
Federation/NNP
official/NN
Philip/NNP
Milburn/NNP
says/VBZ
mountain/NN
biking/NN
is/VBZ
``/``
growing/VBG
at/IN
such/PDT
a/DT
monstrous/JJ
rate/NN
that/IN
a/DT
lot/NN
of/IN
companies/NNS
are/VBP
getting/VBG
into/IN
this/DT
./.
''/''
One/NN
especially/RB
coveted/JJ
Specialized/NNP
market/NN
the/DT
new/JJ
players/NNS
are/VBP
targeting/VBG
is/VBZ
mountain-bike/NN
accessories/NNS
,/,
which/WDT
Mr./NNP
Eidsmo/NNP
calls/VBZ
``/``
the/DT
future/NN
of/IN
our/PRP$
business/NN
./.
''/''
Accessories/NNS
not/RB
only/RB
sell/VBP
faster/RBR
than/IN
whole/JJ
bikes/NNS
,/,
they/PRP
also/RB
offer/VBP
profit/NN
margins/NNS
nearly/RB
double/RB
the/DT
25/CD
%/NN
to/TO
30/CD
%/NN
or/CC
so/RB
on/IN
sales/NNS
of/IN
complete/JJ
cycles/NNS
./.
To/TO
get/VB
a/DT
piece/NN
of/IN
the/DT
business/NN
,/,
Nike/NNP
Inc./NNP
,/,
Beaverton/NNP
,/,
Ore./NNP
,/,
introduced/VBD
a/DT
line/NN
of/IN
mountain-bike/NN
shoes/NNS
./.
About/RB
a/DT
month/NN
ago/RB
,/,
Michelin/NNP
Tire/NNP
Corp./NNP
,/,
Greenville/NNP
,/,
S.C./NNP
,/,
began/VBD
selling/VBG
mountain-bike/NN
tires/NNS
,/,
for/IN
years/NNS
a/DT
Specialized/NNP
stronghold/NN
./.
Competition/NN
in/IN
the/DT
sale/NN
of/IN
complete/JJ
bikes/NNS
is/VBZ
heating/VBG
up/RP
too/RB
./.
Trek/NNP
Bicycle/NNP
Corp./NNP
,/,
which/WDT
accounts/VBZ
for/IN
one-quarter/NN
of/IN
the/DT
$/$
400/CD
million/CD
in/IN
annual/JJ
sales/NNS
at/IN
its/PRP$
Milwaukee-based/JJ
parent/NN
,/,
Intrepid/NNP
Corp./NNP
,/,
entered/VBD
the/DT
mountain-bike/NN
business/NN
in/IN
1983/CD
./.
Trek/NNP
previously/RB
made/VBD
only/JJ
traditional/JJ
road/NN
bikes/NNS
,/,
but/CC
``/``
it/PRP
did/VBD
n't/RB
take/VB
a/DT
rocket/NN
scientist/NN
to/TO
change/VB
a/DT
road/NN
bike/NN
into/IN
a/DT
mountain/NN
bike/NN
,/,
''/''
says/VBZ
Trek/NNP
's/POS
president/NN
,/,
Dick/NNP
Burke/NNP
./.
The/DT
segment/NN
now/RB
makes/VBZ
up/RP
roughly/RB
two-thirds/NNS
of/IN
his/PRP$
company/NN
's/POS
total/JJ
sales/NNS
./.
At/IN
Giant/NNP
Bicycle/NNP
Inc./NNP
,/,
Rancho/NNP
Dominguez/NNP
,/,
Calif./NNP
,/,
sales/NNS
have/VBP
tripled/VBN
since/IN
the/DT
company/NN
entered/VBD
the/DT
U.S./NNP
mountain-bike/NN
business/NN
in/IN
1987/CD
./.
A/DT
subsidiary/NN
of/IN
a/DT
Taiwanese/JJ
holding/VBG
company/NN
with/IN
world-wide/JJ
sales/NNS
of/IN
$/$
150/CD
million/CD
,/,
Giant/NNP
is/VBZ
one/CD
example/NN
of/IN
the/DT
sudden/JJ
globalization/NN
of/IN
Mr./NNP
Sinyard/NNP
's/POS
once-cozy/JJ
market/NN
niche/NN
./.
Schwinn/NNP
Bicycle/NNP
Co./NNP
,/,
Chicago/NNP
,/,
established/VBD
joint/JJ
ventures/NNS
with/IN
bike/NN
companies/NNS
in/IN
mainland/JJ
China/NNP
and/CC
Hungary/NNP
to/TO
sell/VB
bikes/NNS
./.
In/IN
the/DT
past/JJ
year/NN
,/,
Derby/NNP
International/NNP
Corp./NNP
,/,
Luxembourg/NNP
,/,
has/VBZ
acquired/VBN
such/JJ
major/JJ
brands/NNS
as/IN
Peugeot/NNP
,/,
Raleigh/NNP
and/CC
Nishiki/NNP
./.
In/IN
response/NN
to/TO
the/DT
internationalization/NN
of/IN
the/DT
business/NN
,/,
Mr./NNP
Sinyard/NNP
's/POS
company/NN
is/VBZ
replacing/VBG
independent/JJ
distributors/NNS
overseas/RB
with/IN
wholly/RB
owned/VBN
subsidiaries/NNS
./.
The/DT
move/NN
will/MD
cut/VB
out/RP
the/DT
cost/NN
of/IN
a/DT
middleman/NN
and/CC
give/VB
Specialized/NNP
more/JJR
control/NN
over/IN
marketing/NN
and/CC
sales/NNS
./.
But/CC
as/IN
Bill/NNP
Austin/NNP
,/,
Giant/NNP
's/POS
president/NN
,/,
puts/VBZ
it/PRP
,/,
``/``
With/IN
some/DT
of/IN
the/DT
bigger/JJR
players/NNS
consolidating/VBG
their/PRP$
strength/NN
,/,
the/DT
game/NN
has/VBZ
changed/VBN
./.
''/''
Carl/NNP
E./NNP
Pfeiffer/NNP
,/,
chief/JJ
executive/JJ
officer/NN
,/,
was/VBD
named/VBN
to/TO
the/DT
additional/JJ
post/NN
of/IN
chairman/NN
of/IN
this/DT
specialty-metals/NNS
manufacturing/NN
concern/NN
./.
Robert/NNP
C./NNP
Snyder/NNP
,/,
a/DT
director/NN
and/CC
chief/NN
operating/NN
officer/NN
of/IN
the/DT
company/NN
,/,
succeeds/VBZ
Mr./NNP
Pfeiffer/NNP
as/IN
president/NN
./.
Roger/NNP
M./NNP
Marino/NNP
,/,
president/NN
,/,
was/VBD
named/VBN
to/TO
the/DT
new/JJ
post/NN
of/IN
vice/NN
chairman/NN
./.
Michael/NNP
Ruettgers/NNP
,/,
who/WP
had/VBD
been/VBN
executive/JJ
vice/NN
president/NN
,/,
operations/NNS
,/,
was/VBD
named/VBN
president/NN
and/CC
chief/NN
operating/NN
officer/NN
./.
EMC/NNP
manufactures/VBZ
data-storage/JJ
systems/NNS
for/IN
mainframes/NNS
and/CC
minicomputers/NNS
./.
Richard/NNP
J./NNP
Riordan/NNP
was/VBD
elected/VBN
a/DT
director/NN
of/IN
this/DT
single-family/JJ
home/NN
builder/NN
,/,
increasing/VBG
the/DT
board/NN
to/TO
nine/CD
./.
He/PRP
is/VBZ
a/DT
senior/JJ
partner/NN
with/IN
the/DT
law/NN
firm/NN
of/IN
Riordan/NNP
&/CC
McKinzie/NNP
and/CC
is/VBZ
a/DT
partner/NN
in/IN
Riordan/NNP
Venture/NNP
Management/NNP
./.
John/NNP
Franco/NNP
,/,
47/CD
years/NNS
old/JJ
,/,
formerly/RB
vice/NN
chairman/NN
of/IN
Capital/NNP
Holding/NNP
Corp./NNP
and/CC
president/NN
of/IN
its/PRP$
Accumulation/NNP
Investment/NNP
Group/NNP
,/,
was/VBD
named/VBN
chief/JJ
executive/JJ
officer/NN
of/IN
this/DT
insurance/NN
holding/VBG
company/NN
,/,
effective/JJ
Dec./NNP
1/CD
,/,
succeeding/VBG
Robert/NNP
T./NNP
Shaw/NNP
,/,
who/WP
remains/VBZ
chairman/NN
./.
I.C.H./NNP
also/RB
named/VBD
Steven/NNP
B./NNP
Bing/NNP
,/,
42/CD
,/,
senior/JJ
vice/NN
president/NN
since/IN
1986/CD
,/,
as/IN
president/NN
,/,
succeeding/VBG
John/NNP
W./NNP
Gardiner/NNP
,/,
who/WP
will/MD
join/VB
the/DT
HMS/NNP
Acquisition/NNP
Corp./NNP
division/NN
of/IN
Hicks/NNP
,/,
Muse/NNP
&/CC
Co./NNP
,/,
which/WDT
has/VBZ
agreed/VBN
to/TO
buy/VB
most/JJS
of/IN
I.C.H./NNP
's/POS
Denver-based/JJ
subsidiaries/NNS
./.
MCI/NNP
Communications/NNP
Corp./NNP
said/VBD
it/PRP
won/VBD
a/DT
$/$
27/CD
million/CD
contract/NN
from/IN
Stuart-James/NNP
Co./NNP
,/,
a/DT
Denver/NNP
investment/NN
banking/NN
concern/NN
,/,
to/TO
provide/VB
voice/NN
and/CC
data/NN|NNS
telecommunications/NNS
services/NNS
./.
The/DT
agreement/NN
calls/VBZ
for/IN
MCI/NNP
to/TO
provide/VB
data/NN|NNS
service/NN
,/,
800/CD
and/CC
Vnet/NNP
service/NN
,/,
a/DT
virtual/JJ
private/JJ
network/NN
service/NN
./.
The/DT
companies/NNS
would/MD
n't/RB
disclose/VB
the/DT
length/NN
of/IN
the/DT
contract/NN
except/IN
to/TO
say/VB
it/PRP
was/VBD
a/DT
multiyear/JJ
agreement/NN
./.
The/DT
head/NN
of/IN
British/NNP
Satellite/NNP
Broadcasting/NNP
Ltd./NNP
said/VBD
he/PRP
hopes/VBZ
to/TO
raise/VB
about/RB
#/#
450/CD
million/CD
$/$
711/CD
million/CD
the/DT
satellite-TV/JJ
venture/NN
makes/VBZ
its/PRP$
delayed/JJ
debut/NN
next/JJ
spring/NN
--/:
with/IN
a/DT
major/JJ
chunk/NN
coming/VBG
from/IN
new/JJ
investors/NNS
./.
``/``
We/PRP
'll/MD
raise/VB
it/PRP
through/IN
bank/NN
loans/NNS
./.
We/PRP
'll/MD
raise/VB
it/PRP
through/IN
{/(
new/JJ
equity/NN
./.
And/CC
we/PRP
'll/MD
raise/VB
it/PRP
through/IN
existing/VBG
shareholders/NNS
''/''
as/RB
well/RB
as/IN
through/IN
junk/NN
bonds/NNS
,/,
said/VBD
Anthony/NNP
Simonds-Gooding/NNP
,/,
the/DT
private/JJ
consortium/NN
's/POS
chief/JJ
executive/NN
./.
He/PRP
said/VBD
he/PRP
believes/VBZ
the/DT
bank/NN
loan/NN
,/,
to/TO
be/VB
arranged/VBN
by/IN
February/NNP
,/,
will/MD
supply/VB
about/RB
half/NN
of/IN
the/DT
financing/NN
./.
British/NNP
Satellite/NNP
,/,
which/WDT
already/RB
has/VBZ
raised/VBN
#/#
423.5/CD
million/CD
from/IN
10/CD
backers/NNS
,/,
initially/RB
expected/VBD
to/TO
seek/VB
an/DT
additional/JJ
#/#
400/CD
million/CD
./.
Mr./NNP
Simonds-Gooding/NNP
said/VBD
the/DT
additional/JJ
financing/NN
may/MD
leave/VB
British/NNP
Satellite/NNP
owned/VBN
by/IN
about/RB
20/CD
investors/NNS
,/,
including/VBG
Australian/JJ
entrepreneur/NN
Alan/NNP
Bond/NNP
,/,
whose/WP$
nearly/RB
36/CD
%/NN
stake/NN
would/MD
be/VB
reduced/VBN
to/TO
as/RB
little/JJ
as/IN
20/CD
%/NN
./.
Bond/NNP
Corp./NNP
,/,
British/NNP
Satellite/NNP
's/POS
biggest/JJS
investor/NN
,/,
would/MD
like/VB
to/TO
withdraw/VB
from/IN
the/DT
satellite-TV/JJ
consortium/NN
,/,
and/CC
analysts/NNS
have/VBP
speculated/VBN
Hollywood/NNP
studios/NNS
might/MD
buy/VB
the/DT
Bond/NNP
stake/NN
./.
But/CC
Mr./NNP
Simonds-Gooding/NNP
said/VBD
he/PRP
is/VBZ
n't/RB
talking/VBG
to/TO
any/DT
studios/NNS
about/IN
investing/VBG|NN
./.
Besides/IN
Bond/NNP
Corp./NNP
,/,
British/NNP
Satellite/NNP
's/POS
other/JJ
backers/NNS
include/VBP
Pearson/NNP
PLC/NNP
,/,
Reed/NNP
International/NNP
PLC/NNP
and/CC
Granada/NNP
Group/NNP
PLC/NNP
./.
The/DT
consortium/NN
faced/VBD
a/DT
setback/NN
in/IN
May/NNP
when/WRB
technical/JJ
problems/NNS
forced/VBD
it/PRP
to/TO
postpone/VB
the/DT
September/NNP
launch/NN
until/IN
next/JJ
spring/NN
./.
Continued/JJ
uncertainty/NN
about/IN
the/DT
timing/NN
of/IN
the/DT
consortium/NN
's/POS
debut/NN
could/MD
make/VB
it/PRP
hard/JJ
to/TO
find/VB
a/DT
#/#
450/CD
million/CD
cash/NN
injection/NN
./.
Mr./NNP
Simonds-Gooding/NNP
conceded/VBD
that/IN
British/NNP
Satellite/NNP
's/POS
potential/JJ
U.K./NNP
lenders/NNS
``/``
are/VBP
saying/VBG
,/,
`/``
When/WRB
you/PRP
're/VBP
on/IN
the/DT
air/NN
,/,
you/PRP
'll/MD
{/(
actually/RB
}/)
get/VB
the/DT
money/NN
./.
'/''
''/''
The/DT
bankers/NNS
also/RB
insist/VBP
that/IN
the/DT
loans/NNS
depend/VBP
on/IN
the/DT
consortium/NN
raising/VBG
more/JJR
money/NN
from/IN
new/JJ
and/CC
existing/VBG
backers/NNS
./.
British/NNP
Satellite/NNP
today/NN
is/VBZ
unveiling/VBG
a/DT
#/#
30/CD
million/CD
advertising/NN
and/CC
promotional/JJ
drive/NN
for/IN
the/DT
consortium/NN
's/VBZ
planned/JJ
five/CD
channels/NNS
of/IN
movies/NNS
,/,
sports/NNS
,/,
entertainment/NN
and/CC
news/NN
shows/NNS
./.
As/IN
part/NN
of/IN
the/DT
drive/NN
,/,
the/DT
first/JJ
50,000/CD
viewers/NNS
who/WP
put/VBP
up/RP
#/#
10/CD
each/DT
will/MD
get/VB
a/DT
package/NN
valued/VBN
at/IN
#/#
170/CD
--/:
including/VBG
a/DT
satellite/NN
receiving/NN
dish/NN
,/,
equipment/NN
installation/NN
and/CC
a/DT
three-month/JJ
subscription/NN
to/TO
its/PRP$
pay-movie/JJ
service/NN
./.
British/NNP
Satellite/NNP
faces/VBZ
competition/NN
from/IN
Sky/NNP
Television/NNP
,/,
a/DT
satellite-TV/JJ
venture/NN
begun/VBN
last/JJ
February/NNP
and/CC
owned/VBN
by/IN
Rupert/NNP
Murdoch/NNP
's/POS
News/NNP
Corp/NNP
./.
The/DT
rivals/NNS
currently/RB
are/VBP
locked/VBN
in/IN
a/DT
costly/JJ
bidding/NN
contest/NN
for/IN
Hollywood/NNP
film/NN
rights/NNS
./.
Shares/NNS
closed/VBD
sharply/RB
higher/JJR
in/IN
London/NNP
in/IN
the/DT
year/NN
's/POS
thinnest/JJS
volume/NN
Monday/NNP
,/,
supported/VBN
largely/RB
by/IN
a/DT
technical/JJ
bounce/NN
after/IN
last/JJ
week/NN
's/POS
sharp/JJ
declines/NNS
./.
Tokyo/NNP
stocks/NNS
posted/VBD
a/DT
second-consecutive/JJ
loss/NN
Monday/NNP
,/,
while/IN
trading/VBG
in/IN
Frankfurt/NNP
,/,
West/NNP
Germany/NNP
,/,
was/VBD
mixed/JJ
./.
In/IN
London/NNP
,/,
the/DT
Financial/NNP
Times/NNP
100-share/JJ
index/NN
finished/VBD
30.1/CD
points/NNS
higher/JJR
at/IN
2112.2/CD
./.
The/DT
index/NN
settled/VBD
off/IN
the/DT
high/JJ
of/IN
2117.1/CD
posted/VBN
after/IN
Wall/NNP
Street/NNP
opened/VBD
stronger/JJR
./.
But/CC
it/PRP
showed/VBD
strength/NN
throughout/IN
the/DT
session/NN
,/,
hitting/VBG
a/DT
low/NN
of/IN
only/RB
2102.2/CD
within/IN
the/DT
first/JJ
few/JJ
minutes/NNS
of/IN
dealings/NNS
./.
The/DT
30-share/JJ
index/NN
settled/VBD
23.2/CD
points/NNS
higher/JJR
at/IN
1701.7/CD
./.
Volume/NN
was/VBD
only/RB
256.6/CD
million/CD
shares/NNS
,/,
breaking/VBG
the/DT
previous/JJ
1989/CD
low/NN
of/IN
276.8/CD
million/CD
shares/NNS
recorded/VBN
Oct./NNP
23/CD
./.
Turnover/NN
was/VBD
also/RB
down/RB
substantially/RB
from/IN
840.8/CD
million/CD
shares/NNS
on/IN
Friday/NNP
./.
Dealers/NNS
said/VBD
the/DT
market/NN
was/VBD
supported/VBN
to/TO
some/DT
extent/NN
by/IN
a/DT
firmer/JJR
pound/NN
,/,
gains/NNS
on/IN
Wall/NNP
Street/NNP
and/CC
shopping/NN
by/IN
market-makers/NNS
to/TO
cover/VB
internal/JJ
requirements/NNS
for/IN
selected/JJ
stocks/NNS
in/IN
the/DT
100-share/JJ
index/NN
./.
Dealers/NNS
attributed/VBD
most/JJS
of/IN
the/DT
day/NN
's/POS
gains/NNS
to/TO
market-makers/NNS
moving/VBG
prices/NNS
higher/RBR
,/,
rather/RB
than/IN
an/DT
outbreak/NN
of/IN
significant/JJ
buying/NN
interest/NN
./.
Prices/NNS
were/VBD
up/RB
across/IN
the/DT
board/NN
,/,
with/IN
most/RBS
blue-chip/JJ
stocks/NNS
registering/VBG
solid/JJ
gains/NNS
./.
Though/IN
the/DT
market/NN
was/VBD
stronger/JJR
,/,
dealers/NNS
said/VBD
fresh/JJ
buying/NN
interest/NN
was/VBD
sidelined/VBN
ahead/RB
of/IN
a/DT
potential/JJ
market-affecting/JJ
debate/NN
in/IN
the/DT
House/NNP
of/IN
Commons/NNP
set/NN
for/IN
Tuesday/NNP
./.
It/PRP
will/MD
be/VB
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
John/NNP
Major/NNP
's/POS
first/JJ
appearance/NN
before/IN
the/DT
opposition/NN
Labor/NNP
Party/NNP
./.
The/DT
market/NN
is/VBZ
keenly/RB
interested/JJ
in/IN
hearing/VBG
what/WP
he/PRP
has/VBZ
to/TO
say/VB
about/IN
the/DT
status/NN
of/IN
the/DT
current/JJ
15/CD
%/NN
base/JJ
lending/NN
rate/NN
./.
In/IN
London/NNP
trading/NN
,/,
Courtaulds/NNP
,/,
a/DT
chemicals/NNS
and/CC
textiles/NNS
company/NN
,/,
increased/VBD
15/CD
pence/NN
to/TO
362/CD
after/IN
it/PRP
disclosed/VBD
plans/NNS
to/TO
spin/VB
off/RP
its/PRP$
textiles/NNS
operations/NNS
into/IN
a/DT
separately/RB
listed/VBN
company/NN
on/IN
Jan./NNP
1/CD
./.
It/PRP
was/VBD
the/DT
most/RBS
active/JJ
of/IN
the/DT
100-share/JJ
index/NN
at/IN
8.3/CD
million/CD
shares/NNS
,/,
6.5/CD
million/CD
of/IN
which/WDT
were/VBD
traded/VBN
by/IN
midday/NN
./.
Jaguar/NNP
ended/VBD
22/CD
higher/JJR
at/IN
747/CD
./.
Dealers/NNS
said/VBD
fresh/JJ
buying/NN
was/VBD
drawn/VBN
into/IN
Jaguar/NNP
after/IN
a/DT
senior/JJ
executive/NN
of/IN
Daimler-Benz/NNP
,/,
the/DT
auto/NN
maker/NN
,/,
told/VBD
a/DT
British/JJ
television/NN
interviewer/NN
during/IN
the/DT
weekend/NN
that/IN
the/DT
West/JJ
German/JJ
company/NN
held/VBD
talks/NNS
with/IN
the/DT
luxury/NN
auto/NN
maker/NN
over/IN
possible/JJ
joint/JJ
ventures/NNS
./.
Although/IN
Daimler/NNP
has/VBZ
said/VBD
it/PRP
is/VBZ
n't/RB
interested/JJ
in/IN
mounting/VBG
a/DT
bid/NN
for/IN
Jaguar/NNP
,/,
dealers/NNS
said/VBD
its/PRP$
name/NN
further/RB
underlined/VBD
the/DT
growing/VBG
interest/NN
in/IN
the/DT
British/JJ
concern/NN
./.
Glaxo/NNP
was/VBD
the/DT
biggest/JJS
gainer/NN
,/,
jumping/VBG
35/CD
to/TO
#/#
13.78/CD
$/$
21.72/CD
anticipation/NN
of/IN
a/DT
stock/NN
split/NN
next/JJ
week/NN
./.
Total/JJ
turnover/NN
in/IN
Glaxo/NNP
was/VBD
a/DT
thin/JJ
975,000/CD
shares/NNS
./.
In/IN
Tokyo/NNP
,/,
stocks/NNS
had/VBD
a/DT
second-consecutive/JJ
loss/NN
Monday/NNP
in/IN
quiet/JJ
trading/NN
with/IN
the/DT
exception/NN
of/IN
concentrated/JJ
buying/NN
in/IN
some/DT
incentive-backed/JJ
issues/NNS
./.
The/DT
Nikkei/NNP
index/NN
of/IN
225/CD
selected/JJ
issues/NNS
fell/VBD
109.85/CD
points/NNS
to/TO
35417.44/CD
./.
The/DT
index/NN
fell/VBD
151.20/CD
Friday/NNP
./.
In/IN
early/JJ
trading/NN
in/IN
Tokyo/NNP
Tuesday/NNP
,/,
the/DT
Nikkei/NNP
index/NN
rose/VBD
35.28/CD
points/NNS
to/TO
35452.72/CD
./.
On/IN
Monday/NNP
,/,
volume/NN
on/IN
the/DT
First/NNP
Section/NNP
was/VBD
estimated/VBN
at/IN
600/CD
million/CD
shares/NNS
,/,
down/IN
from/IN
1.24/CD
billion/CD
shares/NNS
Friday/NNP
./.
Declining/VBG
issues/NNS
outnumbered/VBD
advancers/NNS
551/CD
to/TO
349/CD
;/:
224/CD
issues/NNS
were/VBD
unchanged/JJ
./.
Investors/NNS
,/,
who/WP
took/VBD
profits/NNS
Friday/NNP
,/,
mostly/RB
took/VBD
a/DT
wait-and-see/JJ
attitude/NN
Monday/NNP
amid/IN
uncertainty/NN
in/IN
the/DT
foreign-currency/NN
market/NN
and/CC
New/NNP
York/NNP
stocks/NNS
,/,
traders/NNS
said/VBD
./.
Takamori/NNP
Matsuda/NNP
,/,
an/DT
analyst/NN
at/IN
Dresdner-ABD/NNP
Securities/NNP
,/,
said/VBD
fading/JJ
expectation/NN
for/IN
lower/JJR
interest/NN
rates/NNS
made/VBD
investors/NNS
step/VB
back/RB
from/IN
real-estate/NN
shares/NNS
,/,
which/WDT
advanced/VBD
last/JJ
week/NN
./.
Some/DT
traders/NNS
said/VBD
institutions/NNS
were/VBD
waiting/VBG
to/TO
see/VB
the/DT
U.S./NNP
jobless/JJ
rate/NN
to/TO
be/VB
issued/VBN
Friday/NNP
./.
The/DT
Tokyo/NNP
Stock/NNP
Price/NNP
Index/NNP
of/IN
all/DT
issues/NNS
listed/VBN
in/IN
the/DT
First/NNP
Section/NNP
,/,
which/WDT
fell/VBD
15.82/CD
points/NNS
Friday/NNP
,/,
was/VBD
down/RB
5.16/CD
points/NNS
,/,
or/CC
0.19/CD
%/NN
,/,
at/IN
2676.60/CD
./.
The/DT
Second/NNP
Section/NNP
index/NN
,/,
which/WDT
fell/VBD
36.87/CD
points/NNS
Friday/NNP
,/,
was/VBD
down/RB
21.44/CD
points/NNS
,/,
or/CC
0.59/CD
%/NN
,/,
to/TO
close/VB
at/IN
3636.06/CD
./.
Second/NNP
Section/NNP
volume/NN
was/VBD
estimated/VBN
at/IN
15/CD
million/CD
shares/NNS
,/,
down/RB
from/IN
24.5/CD
million/CD
shares/NNS
Friday/NNP
./.
Monday/NNP
's/POS
losers/NNS
included/VBD
railway/NN
,/,
electric-utility/JJ
and/CC
high-technology/NN
issues/NNS
./.
The/DT
energy/NN
of/IN
participating/VBG
investors/NNS
streamed/VBD
into/IN
Tokyu/NNP
Group/NNP
shares/NNS
,/,
pushing/VBG
prices/NNS
of/IN
its/PRP$
companies/NNS
up/RP
across/IN
the/DT
board/NN
./.
Tokyu/NNP
Group/NNP
announced/VBD
during/IN
the/DT
weekend/NN
that/IN
each/DT
Group/NNP
company/NN
will/MD
buy/VB
the/DT
others/NNS
'/POS
stocks/NNS
to/TO
defend/VB
themselves/PRP
against/IN
a/DT
rumored/JJ
takeover/NN
./.
The/DT
announcement/NN
fueled/VBD
speculation/NN
for/IN
future/JJ
advances/NNS
in/IN
the/DT
shares/NNS
./.
Tokyu/NNP
Department/NNP
Store/NNP
advanced/VBD
260/CD
to/TO
2410/CD
./.
Tokyu/NNP
Corp./NNP
was/VBD
up/RB
150/CD
at/IN
2890/CD
./.
Tokyu/NNP
Construction/NNP
gained/VBD
170/CD
to/TO
1610/CD
./.
Other/JJ
winners/NNS
Monday/NNP
included/VBD
nonferrous/JJ
metals/NNS
,/,
which/WDT
attracted/VBD
investors/NNS
because/IN
of/IN
a/DT
surge/NN
in/IN
gold/NN
prices/NNS
on/IN
the/DT
back/NN
of/IN
the/DT
unstable/JJ
dollar/NN
./.
Petroleum/NN
companies/NNS
were/VBD
also/RB
popular/JJ
because/IN
of/IN
expectations/NNS
of/IN
a/DT
weaker/JJR
dollar/NN
,/,
which/WDT
cuts/VBZ
dollar-denominated/JJ
crude-oil/JJ
prices/NNS
./.
Share/NN
prices/NNS
in/IN
Frankfurt/NN
closed/VBD
narrowly/RB
mixed/JJ
after/IN
listless/JJ
and/CC
directionless/JJ
trading/NN
./.
The/DT
DAX/NNP
index/NN
closed/VBD
at/IN
1466.29/CD
,/,
up/RB
only/RB
3.36/CD
./.
Traders/NNS
said/VBD
turnover/NN
was/VBD
particularly/RB
thin/JJ
as/IN
investors/NNS
waited/VBD
for/IN
Wall/NNP
Street/NNP
to/TO
set/VB
the/DT
direction/NN
for/IN
the/DT
week/NN
./.
Most/JJS
expect/VBP
the/DT
decline/NN
in/IN
New/NNP
York/NNP
stock/NN
prices/NNS
to/TO
continue/VB
this/DT
week/NN
./.
Another/DT
factor/NN
weighing/VBG
on/IN
the/DT
Frankfurt/NNP
market/NN
involves/VBZ
fears/NNS
about/IN
the/DT
impending/JJ
wage/NN
talks/NNS
between/IN
the/DT
IG/NNP
Metall/NNP
metal-workers/NNS
union/NN
and/CC
industry/NN
representatives/NNS
,/,
which/WDT
could/MD
result/VB
in/IN
a/DT
wave/NN
of/IN
strikes/NNS
next/IN
spring/NN
,/,
traders/NNS
said/VBD
./.
A/DT
few/JJ
blue-chip/JJ
stocks/NNS
posted/VBD
strong/JJ
gains/NNS
,/,
boosted/VBN
by/IN
special/JJ
factors/NNS
,/,
while/IN
the/DT
majority/NN
of/IN
shares/NNS
ended/VBD
little/RB
changed/JJ
./.
Elsewhere/RB
,/,
stock/NN
prices/NNS
were/VBD
lower/JJR
in/IN
Brussels/NNP
,/,
Milan/NNP
and/CC
Stockholm/NNP
,/,
and/CC
mixed/JJ
in/IN
Amsterdam/NNP
,/,
Paris/NNP
and/CC
Zurich/NNP
./.
Stocks/NNS
closed/VBD
higher/JJR
in/IN
Hong/NNP
Kong/NNP
,/,
Manila/NNP
,/,
Seoul/NNP
,/,
Sydney/NNP
,/,
Taipei/NNP
and/CC
Wellington/NNP
,/,
but/CC
were/VBD
lower/JJR
in/IN
Singapore/NNP
./.
Here/RB
are/VBP
price/NN
trends/NNS
on/IN
the/DT
world/NN
's/POS
major/JJ
stock/NN
markets/NNS
,/,
as/IN
calculated/VBN
by/IN
Morgan/NNP
Stanley/NNP
Capital/NNP
International/NNP
Perspective/NNP
,/,
Geneva/NNP
./.
To/TO
make/VB
them/PRP
directly/RB
comparable/JJ
,/,
each/DT
index/NN
is/VBZ
based/VBN
on/IN
the/DT
close/NN
of/IN
1969/CD
equaling/VBG
100/CD
./.
The/DT
percentage/NN
change/NN
is/VBZ
since/IN
year-end/NN
./.
Deere/NNP
&/CC
Co./NNP
said/VBD
it/PRP
reached/VBD
a/DT
tentative/JJ
agreement/NN
with/IN
the/DT
machinists/NNS
'/POS
union/NN
at/IN
its/PRP$
Horicon/NNP
,/,
Wis./NNP
,/,
plant/NN
,/,
ending/VBG
a/DT
month-old/JJ
strike/NN
by/IN
workers/NNS
at/IN
the/DT
facility/NN
./.
The/DT
maker/NN
of/IN
farm/NN
equipment/NN
said/VBD
the/DT
three-year/JJ
labor/NN
agreement/NN
with/IN
the/DT
International/NNP
Association/NNP
of/IN
Machinists/NNP
and/CC
Aerospace/NNP
Workers/NNP
at/IN
John/NNP
Deere/NNP
Horicon/NNP
Works/NNP
,/,
Deere/NNP
's/POS
primary/JJ
facility/NN
for/IN
producing/VBG
lawn/NN
and/CC
grounds-care/JJ
equipment/NN
,/,
takes/VBZ
effect/NN
immediately/RB
and/CC
extends/VBZ
through/IN
Oct./NNP
1/CD
,/,
1992/CD
./.
About/RB
1,150/CD
employees/NNS
are/VBP
covered/VBN
by/IN
the/DT
new/JJ
agreement/NN
,/,
Deere/NNP
said/VBD
./.
Courtaulds/NNP
PLC/NNP
announced/VBD
plans/NNS
to/TO
spin/VB
off/RP
its/PRP$
textiles/NNS
operations/NNS
to/TO
existing/VBG
shareholders/NNS
in/IN
a/DT
restructuring/NN
to/TO
boost/VB
shareholder/NN
value/NN
./.
The/DT
British/JJ
chemical/NN
and/CC
textile/NN
company/NN
's/POS
plan/NN
,/,
which/WDT
requires/VBZ
shareholder/NN
approval/NN
,/,
would/MD
create/VB
a/DT
new/JJ
,/,
listed/JJ
U.K./NNP
stock/NN
with/IN
a/DT
probable/JJ
market/NN
capitalization/NN
between/IN
#/#
300/CD
million/CD
$/$
473/CD
million/CD
400/CD
million/CD
,/,
analysts/NNS
said/VBD
./.
The/DT
establishment/NN
of/IN
the/DT
separate/JJ
company/NN
,/,
to/TO
be/VB
called/VBN
Courtaulds/NNP
Textiles/NNP
,/,
could/MD
be/VB
effective/JJ
as/RB
early/RB
as/IN
next/JJ
year/NN
's/POS
first/JJ
quarter/NN
./.
Investors/NNS
welcomed/VBD
the/DT
move/NN
./.
Courtaulds/NNP
'/POS
shares/NNS
rose/VBD
15/CD
pence/NN
to/TO
362/CD
pence/NN
,/,
valuing/VBG
the/DT
entire/JJ
company/NN
at/IN
about/RB
#/#
1.44/CD
billion/CD
./.
Courtaulds/NNP
'/POS
spinoff/NN
reflects/VBZ
pressure/NN
on/IN
British/JJ
industry/NN
to/TO
boost/VB
share/NN
prices/NNS
beyond/IN
the/DT
reach/NN
of/IN
corporate/JJ
raiders/NNS
./.
Courtaulds/NNP
'/POS
restructuring/NN
is/VBZ
among/IN
the/DT
largest/JJS
thus/RB
far/RB
in/IN
Britain/NNP
,/,
though/IN
it/PRP
is/VBZ
dwarfed/VBN
by/IN
B.A.T/NNP
Industries/NNPS
PLC/NNP
's/POS
plans/NNS
to/TO
spin/VB
off/RP
roughly/RB
#/#
4/CD
billion/CD
in/IN
assets/NNS
to/TO
help/VB
fend/VB
off/RP
a/DT
takeover/NN
bid/NN
from/IN
Anglo-French/JJ
financier/NN
Sir/NNP
James/NNP
Goldsmith/NNP
./.
The/DT
divested/JJ
Courtaulds/NNP
textile/NN
operations/NNS
had/VBD
operating/NN
profit/NN
of/IN
#/#
50/CD
million/CD
on/IN
#/#
980/CD
million/CD
in/IN
revenue/NN
in/IN
the/DT
year/NN
ended/VBN
March/NNP
31/CD
./.
Some/DT
analysts/NNS
have/VBP
said/VBD
Courtaulds/NNP
'/POS
moves/NNS
could/MD
boost/VB
the/DT
company/NN
's/POS
value/NN
by/IN
5/CD
%/NN
to/TO
10/CD
%/NN
,/,
because/IN
the/DT
two/CD
entities/NNS
separately/RB
will/MD
carry/VB
a/DT
higher/JJR
price/NN
earnings/NNS
multiple/NN
than/IN
they/PRP
did/VBD
combined/JJ
./.
In/IN
addition/NN
,/,
Courtaulds/NNP
said/VBD
the/DT
moves/NNS
are/VBP
logical/JJ
because/IN
they/PRP
will/MD
allow/VB
both/DT
the/DT
chemicals/NNS
and/CC
textile/NN
businesses/NNS
to/TO
focus/VB
more/RBR
closely/RB
on/IN
core/NN
activities/NNS
./.
Courtaulds/NNP
has/VBZ
been/VBN
under/IN
pressure/NN
to/TO
enhance/VB
shareholder/NN
value/NN
since/IN
takeover/NN
speculators/NNS
--/:
including/VBG
Australian/JJ
financier/NN
Kerry/NNP
Packer/NNP
--/:
surfaced/VBD
holding/VBG
small/JJ
stakes/NNS
last/JJ
year/NN
./.
Though/IN
Mr./NNP
Packer/NNP
has/VBZ
since/IN
sold/VBN
his/PRP$
stake/NN
,/,
Courtaulds/NNP
is/VBZ
moving/VBG
to/TO
keep/VB
its/PRP$
institutional/JJ
shareholders/NNS
happy/JJ
./.
Even/RB
without/IN
a/DT
specific/NN
takeover/NN
threat/NN
,/,
Courtaulds/NNP
is/VBZ
giving/VBG
shareholders/NNS
``/``
choice/NN
and/CC
value/NN
,/,
''/''
said/VBD
Julia/NNP
Blake/NNP
,/,
an/DT
analyst/NN
at/IN
London/NNP
stockbrokers/NNS
Barclays/NNP
de/IN
Zoete/NNP
Wedd/NNP
./.
In/IN
a/DT
statement/NN
,/,
the/DT
company/NN
said/VBD
:/:
``/``
Both/DT
parts/NNS
can/MD
only/RB
realize/VB
their/PRP$
full/JJ
potential/NN
and/CC
be/VB
appropriately/RB
valued/VBN
by/IN
the/DT
market/NN
if/IN
they/PRP
are/VBP
separately/RB
quoted/VBN
companies/NNS
./.
The/DT
sharper/JJR
definition/NN
and/CC
the/DT
autonomy/NN
which/WDT
each/DT
will/MD
thereby/RB
gain/VB
will/MD
benefit/VB
shareholders/NNS
,/,
customers/NNS
and/CC
employees/NNS
./.
''/''
Courtaulds/NNP
Chairman/NNP
and/CC
Chief/NNP
Executive/NNP
Sir/NNP
Christopher/NNP
Hogg/NNP
will/MD
remain/VB
in/IN
both/DT
posts/NNS
at/IN
the/DT
surviving/VBG
chemical/NN
company/NN
after/IN
the/DT
spinoff/NN
./.
Sanwa/NNP
Shutter/NNP
Corp./NNP
said/VBD
its/PRP$
affiliated/JJ
company/NN
in/IN
Malaysia/NN
,/,
established/VBN
this/DT
April/NNP
,/,
will/MD
begin/VB
manufacturing/VBG
steel/NN
doors/NNS
Wednesday/NNP
./.
Its/PRP$
partner/NN
in/IN
the/DT
joint/JJ
venture/NN
is/VBZ
Sin/NNP
Kean/NNP
Boon/NNP
Metal/NNP
Industries/NNP
,/,
Penang/NNP
,/,
Malaysia/NNP
./.
Company/NN
officials/NNS
said/VBD
the/DT
new/JJ
company/NN
,/,
Sin/NNP
Kean/NNP
Boon-Sanwa/NNP
J.V/NNP
./.
the/DT
equivalent/NN
of/IN
54/CD
million/CD
yen/NNS
$/$
381,000/CD
The/DT
Japanese/JJ
concern/NN
has/VBZ
a/DT
40/CD
%/NN
stake/NN
,/,
while/IN
the/DT
local/JJ
partner/NN
has/VBZ
a/DT
60/CD
%/NN
stake/NN
./.
The/DT
new/JJ
company/NN
was/VBD
created/VBN
to/TO
meet/VB
growing/VBG
demand/NN
for/IN
steel/NN
doors/NNS
,/,
concurrent/JJ
with/IN
increasing/VBG
local/JJ
concern/NN
about/IN
fire/NN
prevention/NN
,/,
the/DT
company/NN
said/VBD
./.
Barbara/NNP
Hackman/NNP
Franklin/NNP
,/,
president/NN
of/IN
Franklin/NNP
Associates/NNPS
,/,
was/VBD
elected/VBN
a/DT
director/NN
of/IN
this/DT
building/NN
products/NNS
maker/NN
./.
Ms./NNP
Franklin/NNP
,/,
49/CD
years/NNS
old/JJ
,/,
fills/VBZ
the/DT
position/NN
vacated/VBN
by/IN
Naomi/NNP
G./NNP
Albanese/NNP
,/,
who/WP
retired/VBD
earlier/RBR
this/DT
year/NN
at/IN
age/NN
72/CD
./.
NEC/NNP
Corp./NNP
said/VBD
it/PRP
plans/VBZ
to/TO
more/RBR
than/IN
double/VB
its/PRP$
British/NNP
subsidiary/NN
's/POS
capacity/NN
for/IN
the/DT
production/NN
of/IN
semiconductor/NN
wafers/NNS
./.
Officials/NNS
at/IN
the/DT
Japanese/JJ
semiconductor/NN
maker/NN
said/VBD
the/DT
company/NN
intends/VBZ
to/TO
increase/VB
investment/NN
in/IN
plant/NN
and/CC
equipment/NN
by/IN
10/CD
billion/CD
yen/NNS
$/$
70.6/CD
million/CD
90/CD
billion/CD
yen/NNS
,/,
in/IN
the/DT
year/NN
ending/VBG
March/NNP
31/CD
,/,
with/IN
the/DT
extra/JJ
funds/NNS
used/VBN
to/TO
increase/VB
production/NN
overseas/RB
./.
Officials/NNS
said/VBD
they/PRP
were/VBD
n't/RB
sure/JJ
how/WRB
the/DT
money/NN
will/MD
be/VB
distributed/VBN
among/IN
overseas/JJ
units/NNS
,/,
but/CC
added/VBD
that/IN
NEC/NNP
Semiconductors/NNP
U.K./NNP
Ltd./NNP
will/MD
receive/VB
priority/NN
./.
Officials/NNS
also/RB
disclosed/VBD
it/PRP
's/VBZ
possible/JJ
that/IN
NEC/NNP
may/MD
reduce/VB
domestic/JJ
production/NN
of/IN
one-megabit/JJ
chips/NNS
to/TO
five/CD
million/CD
a/DT
month/NN
from/IN
six/CD
million/CD
,/,
beginning/VBG
January/NNP
,/,
because/IN
of/IN
deteriorating/VBG
market/NN
prices/NNS
./.
Japan/NNP
's/POS
steel/NN
exports/NNS
fell/VBD
12.2/CD
%/NN
in/IN
September/NNP
from/IN
a/DT
year/NN
earlier/RBR
and/CC
were/VBD
down/RB
1.1/CD
%/NN
from/IN
the/DT
previous/JJ
month/NN
,/,
the/DT
Japan/NNP
Iron/NNP
and/CC
Steel/NNP
Federation/NNP
reported/VBD
./.
September/NNP
was/VBD
the/DT
10th/JJ
consecutive/JJ
month/NN
in/IN
which/WDT
steel/NN
exports/NNS
failed/VBD
to/TO
reach/VB
the/DT
year-earlier/JJ
level/NN
./.
A/DT
federation/NN
official/NN
attributed/VBD
the/DT
decline/NN
to/TO
brisk/JJ
demand/NN
from/IN
domestic/JJ
industries/NNS
backed/VBN
by/IN
continuing/VBG
economic/JJ
expansion/NN
in/IN
Japan/NNP
./.
Japanese/JJ
steel/NN
companies/NNS
are/VBP
apparently/RB
focusing/VBG
on/IN
domestic/JJ
sales/NNS
,/,
but/CC
the/DT
official/NN
said/VBD
it/PRP
does/VBZ
n't/RB
necessarily/RB
mean/VB
that/IN
local/JJ
sales/NNS
contracts/NNS
are/VBP
increasing/VBG
that/RB
markedly/RB
./.
``/``
They/PRP
are/VBP
just/RB
too/RB
busy/JJ
to/TO
meet/VB
domestic/JJ
demand/NN
and/CC
have/VBP
little/JJ
room/NN
for/IN
overseas/JJ
shipments/NNS
,/,
''/''
the/DT
official/NN
said/VBD
./.
Director/NNP
Steve/NNP
Kloves/NNP
took/VBD
a/DT
big/JJ
gamble/NN
on/IN
Michelle/NNP
Pfeiffer/NNP
's/POS
voice/NN
./.
He/PRP
'd/MD
cast/VB
the/DT
actress/NN
,/,
not/RB
exactly/RB
known/VBN
for/IN
her/PRP$
way/NN
with/IN
a/DT
song/NN
,/,
as/IN
the/DT
singing/VBG
star/NN
of/IN
``/``
The/DT
Fabulous/JJ
Baker/NNP
Boys/NNS
''/''
--/:
and/CC
he/PRP
wanted/VBD
her/PRP
to/TO
carry/VB
the/DT
tunes/NNS
herself/PRP
./.
So/IN
the/DT
call/NN
went/VBD
out/RP
for/IN
Sally/NNP
Stevens/NNP
./.
Ms./NNP
Stevens/NNP
is/VBZ
what/WP
is/VBZ
known/VBN
in/IN
the/DT
trade/NN
as/IN
a/DT
studio/NN
singer/NN
./.
The/DT
Los/NNP
Angeles-based/JJ
artist/NN
estimates/VBZ
that/IN
she/PRP
's/VBZ
performed/VBN
on/IN
200-300/CD
film/NN
scores/NNS
,/,
among/IN
them/PRP
``/``
The/DT
Abyss/NN
,/,
''/''
``/``
Ironweed/NN
''/''
and/CC
``/``
Klute/NNP
./.
''/''
Her/PRP$
voice/NN
is/VBZ
audible/JJ
on/IN
the/DT
incidental/JJ
music/NN
for/IN
the/DT
TV/NN
series/NNS
``/``
The/DT
Wonder/NN
Years/NNS
,/,
''/''
``/``
Miami/NNP
Vice/NN
''/''
and/CC
``/``
Matlock/NNP
./.
''/''
She/PRP
has/VBZ
also/RB
worked/VBN
frequently/RB
as/IN
a/DT
lyricist/NN
and/CC
as/IN
a/DT
vocal/JJ
contractor/NN
,/,
hiring/VBG
and/CC
conducting/VBG
choruses/NNS
to/TO
sing/VB
movie/NN
title/NN
tracks/NNS
./.
``/``
Most/JJS
of/IN
what/WP
I/PRP
do/VBP
is/VBZ
very/RB
anonymous/JJ
./.
But/CC
I/PRP
was/VBD
not/RB
brave/JJ
enough/RB
to/TO
say/VB
I/PRP
was/VBD
willing/JJ
to/TO
starve/VB
to/TO
death/NN
to/TO
be/VB
a/DT
recording/NN
artist/NN
./.
And/CC
doing/VBG
studio/NN
work/NN
has/VBZ
been/VBN
a/DT
wonderful/JJ
way/NN
to/TO
make/VB
a/DT
living/NN
for/IN
a/DT
long/JJ
,/,
long/JJ
time/NN
,/,
''/''
said/VBD
Ms./NNP
Stevens/NNP
,/,
who/WP
for/IN
five/CD
years/NNS
in/IN
a/DT
row/NN
received/VBD
the/DT
Most/RBS
Valuable/JJ
Player/NN
award/NN
as/IN
a/DT
female/JJ
studio/NN
vocalist/NN
from/IN
the/DT
National/NNP
Academy/NNP
of/IN
Recording/NNP
Arts/NNPS
and/CC
Sciences/NNPS
,/,
the/DT
organization/NN
that/WDT
hands/VBZ
out/RP
the/DT
Grammys/NNS
./.
Ms./NNP
Stevens/NNP
's/POS
involvement/NN
with/IN
``/``
Baker/NNP
Boys/NNS
''/''
was/VBD
the/DT
result/NN
of/IN
a/DT
long/JJ
affiliation/NN
with/IN
the/DT
movie/NN
's/POS
composer/NN
,/,
Dave/NNP
Grusin/NNP
./.
``/``
I/PRP
had/VBD
written/VBN
lyrics/NNS
with/IN
him/PRP
and/CC
had/VBD
sung/VBN
for/IN
him/PRP
in/IN
various/JJ
films/NNS
and/CC
contracted/VBN
voices/NNS
for/IN
him/PRP
,/,
''/''
she/PRP
said/VBD
./.
``/``
He/PRP
knew/VBD
my/PRP$
work/NN
and/CC
he/PRP
called/VBD
./.
It/PRP
was/VBD
really/RB
funny/JJ
./.
When/WRB
you/PRP
approach/VBP
a/DT
singer/NN
and/CC
tell/VBP
her/PRP
you/PRP
do/VBP
n't/RB
want/VB
her/PRP
to/TO
sing/VB
you/PRP
always/RB
run/VBP
the/DT
risk/NN
of/IN
offending/VBG
./.
He/PRP
said/VBD
,/,
`/``
I/PRP
do/VBP
n't/RB
know/VB
if/IN
this/DT
is/VBZ
going/VBG
to/TO
be/VB
a/DT
compliment/NN
or/CC
an/DT
insult/NN
but/CC
.../:
'/''
Then/RB
he/PRP
explained/VBD
that/IN
Michelle/NN
was/VBD
going/VBG
to/TO
do/VB
this/DT
film/NN
and/CC
the/DT
role/NN
she/PRP
was/VBD
playing/VBG
was/VBD
that/DT
of/IN
a/DT
singer/NN
and/CC
they/PRP
wanted/VBD
very/RB
much/RB
for/IN
her/PRP
to/TO
do/VB
her/PRP$
own/JJ
singing/NN
if/IN
that/DT
was/VBD
possible/JJ
./.
''/''
At/IN
that/DT
point/NN
nobody/NN
,/,
including/VBG
Ms./NNP
Pfeiffer/NNP
herself/PRP
,/,
was/VBD
certain/JJ
it/PRP
would/MD
be/VB
possible/JJ
./.
She/PRP
had/VBD
,/,
after/IN
all/DT
,/,
sung/VBN
in/IN
only/RB
one/CD
movie/NN
,/,
``/``
Grease/NN
II/CD
,/,
''/''
and/CC
the/DT
vocal/JJ
demands/NNS
of/IN
``/``
Baker/NNP
Boys/NNS
''/''
--/:
singing/VBG
standards/NNS
with/IN
only/RB
a/DT
piano/NN
backup/NN
--/:
were/VBD
considerably/RB
more/RBR
imposing/JJ
--/:
and/CC
exposing/JJ
--/:
than/IN
belting/VBG
out/IN
a/DT
rock'n/NN
'/''
roll/NN
score/NN
in/IN
concert/NN
with/IN
several/JJ
other/JJ
singers/NNS
and/CC
instruments/NNS
./.
If/IN
Ms./NNP
Pfeiffer/NNP
was/VBD
n't/RB
sure/JJ
she/PRP
was/VBD
up/IN
to/TO
putting/VBG
over/RP
numbers/NNS
like/IN
``/``
The/DT
Look/NN
of/IN
Love/NN
,/,
''/''
``/``
Ten/CD
Cents/NNS
a/DT
Dance/NN
''/''
and/CC
``/``
My/PRP$
Funny/JJ
Valentine/NN
,/,
''/''
Ms./NNP
Stevens/NNP
was/VBD
n't/RB
sure/JJ
she/PRP
was/VBD
up/IN
to/TO
showing/VBG
the/DT
way/NN
./.
``/``
I/PRP
had/VBD
not/RB
done/VBN
any/DT
coaching/NN
before/RB
,/,
''/''
she/PRP
said/VBD
./.
``/``
I/PRP
have/VBP
produced/VBN
vocal/JJ
performances/NNS
in/IN
the/DT
studio/NN
for/IN
professional/JJ
singers/NNS
./.
But/CC
I/PRP
had/VBD
never/RB
taken/VBN
anyone/NN
from/IN
scratch/NN
before/RB
./.
I/PRP
had/VBD
to/TO
go/VB
a/DT
lot/NN
by/IN
instinct/NN
./.
I/PRP
think/VBP
Dave/JJ
thought/NN
that/IN
in/IN
my/PRP$
career/NN
I/PRP
had/VBD
done/VBN
what/WP
the/DT
Susie/NNP
Diamond/NNP
character/NN
had/VBD
done/VBN
and/CC
that/IN
Michelle/NN
,/,
consciously/RB
or/CC
unconsciously/RB
,/,
would/MD
pick/VB
up/RP
some/DT
things/NNS
./.
''/''
One/CD
of/IN
the/DT
first/JJ
lessons/NNS
took/VBD
place/NN
at/IN
the/DT
Cinegrill/NNP
,/,
a/DT
lounge/NN
in/IN
the/DT
Hollywood/NNP
Roosevelt/NNP
Hotel/NNP
where/WRB
Ms./NNP
Stevens/NNP
brought/VBD
Ms./NNP
Pfeiffer/NNP
to/TO
hear/VB
a/DT
nightclub/NN
singer/NN
and/CC
soak/VB
up/RP
some/DT
atmosphere/NN
./.
``/``
Her/PRP$
instincts/NNS
were/VBD
wonderfully/RB
astute/JJ
,/,
''/''
remembered/VBD
Ms./NNP
Stevens/NNP
,/,
who/WP
is/VBZ
in/IN
her/PRP$
40s/CD
./.
``/``
Michelle/NN
sensed/VBD
an/DT
undercurrent/NN
of/IN
anger/NN
in/IN
the/DT
singer/NN
's/POS
performance/NN
./.
I/PRP
think/VBP
it/PRP
's/VBZ
true/JJ
with/IN
a/DT
lot/NN
of/IN
club/NN
singers/NNS
who/WP
have/VBP
n't/RB
had/VBD
the/DT
recognition/NN
they/PRP
feel/VBP
they/PRP
deserve/VBP
or/CC
that/WDT
they/PRP
had/VBD
hoped/VBN
for/IN
./.
''/''
Accordingly/RB
,/,
Ms./NNP
Pfeiffer/NNP
incorporated/VBD
anger/NN
into/IN
the/DT
development/NN
of/IN
her/PRP$
character/NN
./.
As/IN
for/IN
Ms./NNP
Pfeiffer/NNP
's/POS
vocal/JJ
development/NN
:/:
For/IN
five/CD
or/CC
six/CD
weeks/NNS
,/,
Ms./NNP
Stevens/NNP
made/VBD
daily/JJ
two-hour/JJ
visits/NNS
to/TO
the/DT
actress/NN
's/POS
Santa/NNP
Monica/NNP
home/NN
armed/VBN
with/IN
sheet/NN
music/NN
,/,
and/CC
on/IN
occasion/NN
albums/NNS
by/IN
June/NNP
Christy/NNP
,/,
Blossom/NNP
Dearie/NNP
and/CC
Ella/NNP
Fitzgerald/NNP
,/,
artists/NNS
Ms./NNP
Pfeiffer/NNP
had/VBD
n't/RB
paid/VBN
much/JJ
mind/NN
to/TO
in/IN
the/DT
past/NN
./.
``/``
I/PRP
suggested/VBD
Michelle/NN
listen/VB
to/TO
Ella/NNP
,/,
''/''
said/VBD
Ms./NNP
Stevens/NNP
./.
``/``
Nobody/NN
sings/VBZ
better/RBR
,/,
not/RB
that/IN
I/PRP
wanted/VBD
her/PRP
to/TO
sound/VB
like/IN
Ella/NNP
but/CC
there/EX
's/VBZ
a/DT
quality/NN
artists/NNS
of/IN
that/DT
period/NN
had/VBD
that/WDT
we/PRP
felt/VBD
the/DT
character/NN
Susie/NN
might/MD
have/VB
listened/VBN
to/TO
./.
''/''
From/IN
the/DT
way/NN
she/PRP
sang/VBD
in/IN
those/DT
early/JJ
sessions/NNS
,/,
it/PRP
seemed/VBD
clear/JJ
that/IN
Michelle/NNP
had/VBD
been/VBN
listening/VBG
not/RB
to/TO
Ella/NNP
but/CC
to/TO
Bob/NNP
Dylan/NNP
./.
``/``
There/EX
was/VBD
a/DT
pronunciation/NN
and/CC
approach/NN
that/WDT
seemed/VBD
Dylan-influenced/JJ
,/,
''/''
recalled/VBD
Ms./NNP
Stevens/NNP
./.
Vowels/NNS
were/VBD
swallowed/VBN
,/,
word/NN
endings/NNS
were/VBD
given/VBN
short/JJ
or/CC
no/DT
shrift/NN
./.
``/``
When/WRB
we/PRP
worked/VBD
it/PRP
almost/RB
became/VBD
a/DT
joke/NN
with/IN
us/PRP
that/IN
I/PRP
was/VBD
constantly/RB
reminding/VBG
her/PRP
to/TO
say/VB
the/DT
consonants/NNS
as/RB
well/RB
as/IN
the/DT
vowels/NNS
./.
''/''
To/TO
explain/VB
exactly/RB
what/WP
she/PRP
meant/VBD
,/,
Ms./NNP
Stevens/NNP
and/CC
Mr./NNP
Grusin/NNP
went/VBD
into/IN
a/DT
Los/NNP
Angeles/NNP
studio/NN
and/CC
recorded/VBD
a/DT
vocal\/piano/JJ
demo/NN
of/IN
the/DT
songs/NNS
being/VBG
considered/VBN
for/IN
inclusion/NN
in/IN
the/DT
movie/NN
so/IN
that/IN
Ms./NNP
Pfeiffer/NNP
could/MD
learn/VB
the/DT
numbers/NNS
,/,
correct/JJ
enunciation/NN
and/CC
all/DT
./.
Mr./NNP
Grusin/NNP
also/RB
made/VBD
a/DT
demo/NN
tape/NN
with/IN
just/JJ
piano/NN
to/TO
provide/VB
accompaniment/NN
when/WRB
Ms./NNP
Pfeiffer/NNP
practiced/VBD
./.
What/WP
Ms./NNP
Pfeiffer/NNP
had/VBD
going/VBG
for/IN
her/PRP
besides/IN
determination/NN
--/:
Ms./NNP
Stevens/NNP
recalled/VBD
that/IN
the/DT
actress/NN
was/VBD
up/RP
one/CD
night/NN
until/IN
3/CD
a.m./NN
practicing/VBG
``/``
My/PRP$
Funny/JJ
Valentine/NN
''/''
--/:
was/VBD
an/DT
airy/JJ
alto/NN
,/,
a/DT
nice/JJ
breathy/JJ
quality/NN
and/CC
intelligence/NN
./.
``/``
When/WRB
we/PRP
first/RB
started/VBD
working/VBG
it/PRP
was/VBD
a/DT
matter/NN
of/IN
finding/VBG
a/DT
language/NN
we/PRP
both/DT
understood/VBD
,/,
''/''
Ms./NNP
Stevens/NNP
said/VBD
./.
``/``
I/PRP
could/MD
n't/RB
talk/VB
with/IN
her/PRP
as/IN
I/PRP
would/MD
with/IN
someone/NN
who/WP
had/VBD
a/DT
lot/NN
of/IN
vocal/JJ
training/NN
./.
''/''
So/RB
what/WP
Ms./NNP
Stevens/NNP
talked/VBD
about/IN
was/VBD
the/DT
importance/NN
of/IN
saying/VBG
the/DT
words/NNS
at/IN
the/DT
front/NN
of/IN
the/DT
mouth/NN
with/IN
the/DT
lips/NNS
and/CC
the/DT
teeth/NNS
./.
She/PRP
urged/VBD
Ms./NNP
Pfeiffer/NNP
to/TO
get/VB
the/DT
feeling/NN
of/IN
a/DT
smile/NN
in/IN
her/PRP$
throat/NN
and/CC
to/TO
put/VB
a/DT
smile/NN
on/IN
her/PRP$
face/NN
to/TO
give/VB
the/DT
pitch/NN
and/CC
the/DT
sound/NN
a/DT
lift/NN
./.
She/PRP
kept/VBD
harping/VBG
on/IN
the/DT
importance/NN
of/IN
overdoing/VBG
the/DT
consonants/NNS
and/CC
percussive/JJ
endings/NNS
like/IN
``/``
T/NN
''/''
and/CC
``/``
K/NN
./.
''/''
She/PRP
talked/VBD
about/IN
using/VBG
language/NN
as/IN
a/DT
tool/NN
,/,
about/IN
flirting/VBG
with/IN
the/DT
lyrics/NNS
./.
And/CC
please/UH
,/,
Michelle/NNP
,/,
when/WRB
you/PRP
sing/VBP
the/DT
line/NN
in/IN
``/``
Makin/VBG
'/''
Whoopee/NN
,/,
''/''
about/IN
another/DT
sunny/JJ
,/,
funny/JJ
honeymoon/NN
,/,
do/VB
n't/RB
say/VB
``/``
funn-ih/JJ
,/,
''/''
the/DT
way/NN
Dylan/NN
would/MD
./.
Say/VB
``/``
funn-eeee/JJ
./.
''/''
Put/VBD
the/DT
clean/JJ
vowel/NN
ending/NN
on/IN
it/PRP
./.
And/CC
Michelle/NNP
,/,
must/MD
you/PRP
continue/VB
to/TO
smoke/VB
two/CD
packs/NNS
of/IN
cigarettes/NNS
a/DT
day/NN
?/.
``/``
It/PRP
was/VBD
a/DT
process/NN
of/IN
discovery/NN
,/,
''/''
said/VBD
Ms./NNP
Stevens/NNP
,/,
who/WP
admitted/VBD
she/PRP
sometimes/RB
felt/VBD
a/DT
bit/NN
like/IN
Henry/NNP
Higgins/NNP
./.
``/``
What/WP
I/PRP
tried/VBD
to/TO
do/VB
was/VBD
take/VB
the/DT
sparks/NNS
of/IN
the/DT
positive/JJ
stuff/NN
and/CC
fan/VB
them/PRP
./.
I/PRP
tried/VBD
not/RB
to/TO
do/VB
much/JJ
`/``
do/VB
n't/RB
do/VB
this/DT
,/,
do/VB
n't/RB
do/VB
that/DT
./.
'/''
''/''
There/EX
was/VBD
another/DT
layer/NN
to/TO
the/DT
coaching/NN
:/:
Helping/VBG
Ms./NNP
Pfeiffer/NNP
sing/VB
a/DT
song/NN
the/DT
way/NN
Susie/NNP
Diamond/NNP
would/MD
sing/VB
it/PRP
./.
Not/RB
brilliantly/RB
,/,
because/RB
,/,
after/IN
all/DT
,/,
this/DT
was/VBD
a/DT
performer/JJ
who/WP
was/VBD
collecting/VBG
paychecks/NNS
from/IN
lounges/NNS
at/IN
Hiltons/NNPS
and/CC
Holiday/NNP
Inns/NNPS
,/,
but/CC
creditably/RB
and/CC
with/IN
the/DT
air/NN
of/IN
someone/NN
for/IN
whom/WP
``/``
Ten/CD
Cents/NNS
a/DT
Dance/NN
''/''
was/VBD
more/RBR
than/IN
a/DT
bit/NN
autobiographical/JJ
./.
``/``
It/PRP
was/VBD
an/DT
exercise/NN
of/IN
blending/VBG
Michelle/NN
's/POS
singing/NN
with/IN
Susie/NNP
's/POS
singing/NN
,/,
''/''
explained/VBD
Ms./NNP
Stevens/NNP
./.
``/``
If/IN
`/``
Dangerous/JJ
Liaisons/NNS
'/POS
had/VBD
been/VBN
a/DT
musical/NN
she/PRP
would/MD
have/VB
had/VBD
to/TO
give/VB
a/DT
different/JJ
vocal/JJ
performance/NN
because/IN
she/PRP
was/VBD
a/DT
different/JJ
character/NN
in/IN
that/DT
movie/NN
./.
''/''
Ms./NNP
Pfeiffer/NNP
's/POS
vocal/JJ
performance/NN
in/IN
``/``
Baker/NNP
Boys/NNP
''/''
--/:
recorded/VBN
for/IN
posterity/NN
on/IN
the/DT
soundtrack/NN
album/NN
GRP/NNP
her/PRP$
first/JJ
number/NN
,/,
``/``
More/RBR
Than/IN
You/PRP
Know/VBP
,/,
''/''
viewers/NNS
begin/VB
murmuring/VBG
to/TO
each/DT
other/JJ
``/``
Is/VBZ
that/DT
really/RB
her/PRP
singing/VBG
?/.
That/DT
is/VBZ
n't/RB
really/RB
her/PRP
./.
''/''
``/``
I/PRP
can/MD
swear/VB
that/IN
every/DT
single/JJ
note/NN
in/IN
that/DT
movie/NN
was/VBD
hers/PRP
,/,
''/''
averred/VBD
Ms./NNP
Stevens/NNP
,/,
who/WP
had/VBD
begun/VBN
kidding/VBG
her/PRP$
protege/NN
that/IN
she/PRP
was/VBD
going/VBG
to/TO
get/VB
a/DT
`/``
Tonight/NN
Show/NN
'/''
booking/NN
./.
``/``
Seeing/NNP
Michelle/NNP
up/RB
there/RB
,/,
''/''
she/PRP
added/VBD
,/,
``/``
was/VBD
like/IN
watching/VBG
myself/PRP
or/CC
my/PRP$
daughter/NN
./.
I/PRP
was/VBD
so/RB
nervous/JJ
./.
I/PRP
wanted/VBD
her/PRP
to/TO
be/VB
so/RB
good/JJ
./.
I/PRP
did/VBD
n't/RB
want/VB
to/TO
feel/VB
as/IN
if/IN
I/PRP
'd/MD
let/VB
her/PRP
down/RP
./.
''/''
Ms./NNP
Kaufman/NNP
is/VBZ
a/DT
free-lance/JJ
writer/NN
based/VBN
in/IN
New/NNP
York/NNP
./.
British/NNP
Petroleum/NNP
PLC/NNP
said/VBD
its/PRP$
North/NNP
Sea/NNP
Ravenspurn/NNP
South/NNP
natural/JJ
gas/NN
field/NN
has/VBZ
entered/VBN
production/NN
./.
The/DT
company/NN
said/VBD
Ravenspurn/NNP
``/``
A/NNP
,/,
''/''
the/DT
first/JJ
of/IN
three/CD
unmanned/JJ
wellhead/NN
platforms/NNS
,/,
started/VBD
production/NN
./.
The/DT
two/CD
others/NNS
will/MD
be/VB
brought/VBN
into/IN
production/NN
over/IN
the/DT
next/JJ
year/NN
,/,
BP/NNP
added/VBD
./.
Initial/JJ
production/NN
from/IN
the/DT
field/NN
will/MD
be/VB
70/CD
million/CD
cubic/JJ
feet/NNS
per/IN
day/NN
,/,
rising/VBG
to/TO
200/CD
million/CD
cubic/JJ
feet/NNS
per/IN
day/NN
by/IN
1991/CD
./.
BP/NNP
said/VBD
the/DT
field/NN
had/VBD
reserves/NNS
of/IN
635/CD
billion/CD
cubic/JJ
feet/NNS
and/CC
an/DT
estimated/JJ
production/NN
life/NN
of/IN
20/CD
years/NNS
./.
The/DT
field/NN
is/VBZ
100/CD
%/NN
licensed/VBN
to/TO
BP/NNP
./.
Raw-steel/JJ
production/NN
by/IN
the/DT
nation/NN
's/POS
mills/NNS
decreased/VBD
3.4/CD
%/NN
last/JJ
week/NN
to/TO
1,754,000/CD
tons/NNS
from/IN
1,816,000/CD
tons/NNS
the/DT
previous/JJ
week/NN
,/,
the/DT
American/NNP
Iron/NNP
and/CC
Steel/NNP
Institute/NNP
said/VBD
./.
Last/JJ
week/NN
's/POS
output/NN
fell/VBD
6.4/CD
%/NN
from/IN
the/DT
1,874,000/CD
tons/NNS
produced/VBN
a/DT
year/NN
earlier/RBR
./.
The/DT
industry/NN
used/VBD
78.8/CD
%/NN
of/IN
its/PRP$
capability/NN
last/JJ
week/NN
,/,
compared/VBN
with/IN
81.6/CD
%/NN
the/DT
previous/JJ
week/NN
and/CC
87.4/CD
%/NN
a/DT
year/NN
ago/RB
./.
The/DT
capability/NN
utilization/NN
rate/NN
is/VBZ
a/DT
calculation/NN
designed/VBN
to/TO
indicate/VB
at/IN
what/WDT
percent/NN
of/IN
its/PRP$
production/NN
capability/NN
the/DT
industry/NN
is/VBZ
operating/VBG
in/IN
a/DT
given/JJ
week/NN
./.
As/IN
the/DT
leading/JJ
candidate/NN
for/IN
president/NN
of/IN
his/PRP$
country/NN
in/IN
next/JJ
year/NN
's/POS
election/NN
,/,
Mario/NNP
Vargas/NNP
Llosa/NNP
ought/MD
to/TO
be/VB
in/IN
an/DT
enviable/JJ
position/NN
./.
But/CC
his/PRP$
country/NN
is/VBZ
Peru/NNP
,/,
where/WRB
political/JJ
visibility/NN
,/,
especially/RB
for/IN
a/DT
believer/NN
in/IN
democracy/NN
and/CC
free/JJ
enterprise/NN
--/:
a/DT
right/JJ
winger/NN
in/IN
Latin/JJ
American/JJ
eyes/NNS
--/:
makes/VBZ
a/DT
man/NN
a/DT
target/NN
for/IN
assassination/NN
./.
For/IN
almost/RB
any/DT
Peruvian/NNP
these/DT
days/NNS
,/,
to/TO
show/VB
an/DT
interest/NN
in/IN
public/JJ
office/NN
is/VBZ
a/DT
heroic/JJ
gesture/NN
;/:
for/IN
Mr./NNP
Vargas/NNP
Llosa/NNP
especially/RB
so/RB
,/,
since/IN
he/PRP
already/RB
has/VBZ
achieved/VBN
a/DT
high/JJ
position/NN
in/IN
the/DT
world/NN
's/POS
eyes/NNS
as/IN
a/DT
writer/NN
./.
Published/VBN
everywhere/RB
to/TO
universal/JJ
acclaim/NN
,/,
doted/VBN
on/IN
like/IN
a/DT
movie/NN
star/NN
in/IN
the/DT
Hispanic/JJ
world/NN
from/IN
Barcelona/NNP
to/TO
Ushuaia/NNP
,/,
Mr./NNP
Vargas/NNP
Llosa/NNP
could/MD
live/VB
comfortably/RB
on/IN
his/PRP$
royalties/NNS
and/CC
console/VB
his/PRP$
political/JJ
conscience/NN
with/IN
the/DT
thought/NN
that/IN
Peru/NNP
is/VBZ
a/DT
hopeless/JJ
mess/NN
not/RB
of/IN
his/PRP$
making/NN
and/CC
that/IN
he/PRP
already/RB
did/VBD
his/PRP$
best/JJS
to/TO
reform/VB
it/PRP
with/IN
his/PRP$
magnificently/RB
cinematic/JJ
novel/NN
about/IN
the/DT
years/NNS
of/IN
military/JJ
dictatorship/NN
of/IN
his/PRP$
youth/NN
,/,
``/``
Conversation/NN
in/IN
the/DT
Cathedral/NN
./.
''/''
But/CC
,/,
after/IN
some/DT
hesitation/NN
,/,
he/PRP
is/VBZ
back/RB
on/IN
the/DT
stump/NN
and/CC
also/RB
still/RB
writing/VBG
important/JJ
novels/NNS
about/IN
Peru/NNP
./.
``/``
The/DT
Storyteller/NN
''/''
(/(
Farrar/NNP
,/,
Straus/NNP
&/CC
Giroux/NNP
,/,
246/CD
pages/NNS
,/,
$/$
17.95/CD
Helen/NNP
Lane/NNP
,/,
first/JJ
appeared/VBD
in/IN
Spanish/NNP
in/IN
1987/CD
before/IN
the/DT
Peruvian/JJ
economy/NN
had/VBD
reached/VBN
its/PRP$
present/JJ
state/NN
of/IN
virtual/JJ
collapse/NN
./.
And/CC
in/IN
any/DT
case/NN
the/DT
story/NN
takes/VBZ
place/NN
a/DT
bit/NN
earlier/RBR
than/IN
that/DT
,/,
when/WRB
the/DT
guerrilla/NN
war/NN
in/IN
the/DT
highlands/NNS
had/VBD
not/RB
yet/RB
made/VBN
internal/JJ
travel/NN
a/DT
gamble/NN
with/IN
destiny/NN
./.
Even/RB
still/RB
,/,
the/DT
very/JJ
first/JJ
sentence/NN
of/IN
this/DT
fable/NN
that/WDT
weaves/VBZ
together/RB
Peru/NNP
's/POS
most/RBS
advanced/JJ
and/CC
most/RBS
primitive/JJ
cultural/JJ
strands/NNS
speaks/VBZ
of/IN
``/``
my/PRP$
unfortunate/JJ
country/NN
./.
''/''
The/DT
narrator/NN
may/MD
be/VB
talking/VBG
about/IN
the/DT
depredations/NNS
of/IN
the/DT
Shining/NNP
Path/NNP
Maoists/NNPS
among/IN
the/DT
Indians/NNPS
of/IN
the/DT
Andes/NNPS
,/,
or/CC
he/PRP
may/MD
be/VB
referring/VBG
to/TO
the/DT
plunging/VBG
inti/NN
,/,
Peru/NNP
's/POS
rubber/NN
currency/NN
,/,
or/CC
the/DT
corrupting/JJ
effect/NN
of/IN
the/DT
cocaine/NN
trade/NN
./.
But/CC
he/PRP
is/VBZ
swiftly/RB
drawn/VBN
into/IN
a/DT
tangle/NN
of/IN
memories/NNS
about/IN
a/DT
less/RBR
newsworthy/JJ
and/CC
more/RBR
exotic/JJ
part/NN
of/IN
Peru/NNP
:/:
its/PRP$
corner/NN
of/IN
the/DT
Amazon/NNP
jungle/NN
./.
This/DT
narrator/NN
is/VBZ
a/DT
foil/NN
for/IN
Mr./NNP
Vargas/NNP
Llosa/NNP
,/,
a/DT
cosmopolitan/JJ
writer/NN
with/IN
one/CD
well-tailored/JJ
leg/NN
in/IN
journalism/NN
./.
He/PRP
is/VBZ
in/IN
Florence/NNP
to/TO
shake/VB
himself/PRP
free/JJ
of/IN
Peru/NN
and/CC
get/VB
some/DT
writing/NN
done/VBN
,/,
just/RB
as/IN
Mr./NNP
Vargas/NNP
Llosa/NNP
has/VBZ
gone/VBN
to/TO
Paris/NNP
and/CC
now/RB
goes/VBZ
frequently/RB
to/TO
London/NNP
for/IN
the/DT
same/JJ
purpose/NN
./.
But/CC
this/DT
narrator/NN
happens/VBZ
upon/IN
some/DT
photographs/NNS
in/IN
a/DT
gallery/NN
,/,
pictures/NNS
taken/VBN
in/IN
Peruvian/JJ
Amazonia/NNP
of/IN
the/DT
untamed/JJ
and/CC
nomadic/JJ
Machiguenga/NNP
tribe/NN
./.
And/CC
they/PRP
remind/VBP
him/PRP
of/IN
his/PRP$
own/JJ
experiences/NNS
with/IN
that/DT
unhappy/JJ
scattered/JJ
culture/NN
and/CC
of/IN
his/PRP$
friend/NN
at/IN
Lima/NNP
's/POS
University/NNP
of/IN
San/NNP
Marcos/NNP
,/,
Saul/NNP
Zuratas/NNP
./.
Saul/NNP
was/VBD
a/DT
high-strung/JJ
student/NN
of/IN
ethnography/NN
,/,
a/DT
Jew/NNP
marked/JJ
doubly/RB
as/IN
an/DT
outsider/NN
because/IN
of/IN
a/DT
huge/JJ
wine-dark/JJ
birthmark/NN
on/IN
his/PRP$
face/NN
,/,
for/IN
which/WDT
people/NNS
called/VBD
him/PRP
Mascarita/NNP
,/,
Mask/NNP
Face/NNP
./.
Saul/NNP
knew/VBD
about/IN
the/DT
Machiguengas/NNS
from/IN
his/PRP$
studies/NNS
,/,
and/CC
through/IN
him/PRP
the/DT
narrator/NN
became/VBD
interested/JJ
in/IN
this/DT
most/RBS
recalcitrant/JJ
and/CC
un-Westernizable/JJ
of/IN
all/PDT
the/DT
indigenous/JJ
peoples/NNS
who/WP
had/VBD
come/VBN
under/IN
the/DT
Spanish/JJ
yoke/NN
./.
Saul/NNP
,/,
meanwhile/RB
,/,
came/VBD
to/TO
believe/VB
that/IN
anthropology/NN
,/,
even/RB
at/IN
its/PRP$
most/RBS
benign/JJ
,/,
was/VBD
as/RB
insidious/JJ
a/DT
form/NN
of/IN
cultural/JJ
imperialism/NN
as/IN
the/DT
superficially/RB
more/RBR
blatant/JJ
activities/NNS
of/IN
Christian/JJ
missionaries/NNS
./.
Saul/NNP
mysteriously/RB
disappears/VBZ
./.
This/DT
is/VBZ
what/WP
we/PRP
know/VBP
at/IN
the/DT
end/NN
of/IN
the/DT
opening/VBG
section/NN
of/IN
``/``
The/DT
Storyteller/NNP
./.
''/''
The/DT
next/JJ
voice/NN
we/PRP
hear/VBP
sounds/VBZ
like/IN
this/DT
:/:
``/``
There/EX
was/VBD
no/DT
evil/NN
,/,
there/EX
was/VBD
no/DT
wind/NN
,/,
there/EX
was/VBD
no/DT
rain/NN
./.
The/DT
women/NNS
bore/VBD
pure/JJ
children/NNS
./.
If/IN
Tasurinchi/NNP
wanted/VBD
to/TO
eat/VB
,/,
he/PRP
dipped/VBD
his/PRP$
hand/NN
into/IN
the/DT
river/NN
and/CC
brought/VBD
out/RP
a/DT
shad/NN
flicking/VBG
its/PRP$
tail/NN
.../:
''/''
And/CC
this/DT
:/:
``/``
Moving/VBG
,/,
walking/VBG
./.
Keeping/VBG
on/RB
,/,
with/IN
or/CC
without/IN
rain/NN
,/,
by/IN
land/NN
or/CC
by/IN
water/NN
,/,
climbing/VBG
up/IN
the/DT
mountain/NN
slopes/NNS
or/CC
climbing/VBG
down/IN
the/DT
ravines/NNS
./.
''/''
The/DT
speaker/NN
is/VBZ
never/RB
identified/VBN
./.
He/PRP
tells/VBZ
his/PRP$
stories/NNS
in/IN
his/PRP$
majestically/RB
simple/JJ
way/NN
,/,
in/IN
a/DT
``/``
language/NN
''/''
all/RB
his/PRP$
own/JJ
./.
There/EX
are/VBP
creation/NN
myths/NNS
and/CC
cosmologies/NNS
and/CC
hunting/NN
stories/NNS
--/:
a/DT
whole/JJ
culture/NN
is/VBZ
contained/VBN
within/IN
these/DT
dreamy/JJ
narratives/NNS
./.
It/PRP
is/VBZ
as/IN
though/IN
Mr./NNP
Vargas/NNP
Llosa/NNP
had/VBD
recorded/VBN
a/DT
storytelling/NN
session/NN
at/IN
a/DT
Machiguenga/NNP
campfire/NN
./.
And/CC
this/DT
is/VBZ
just/RB
the/DT
effect/NN
he/PRP
hopes/VBZ
to/TO
have/VB
on/IN
the/DT
reader/NN
,/,
as/IN
he/PRP
alternates/VBZ
chapters/NNS
in/IN
his/PRP$
``/``
own/JJ
''/''
voice/NN
with/IN
chapters/NNS
somehow/RB
``/``
borrowed/VBN
''/''
from/IN
the/DT
Machiguenga/NNP
storyteller/NN
./.
For/IN
most/JJS
of/IN
the/DT
book/NN
,/,
there/EX
is/VBZ
no/DT
direct/JJ
connection/NN
between/IN
its/PRP$
urban/JJ
and/CC
its/PRP$
Amazonian/JJ
modes/NNS
./.
But/CC
the/DT
contrast/NN
between/IN
them/PRP
becomes/VBZ
a/DT
living/JJ
thing/NN
through/IN
the/DT
brilliant/JJ
contrast/NN
of/IN
narrative/JJ
styles/NNS
that/IN
Mr./NNP
Vargas/NNP
Llosa/NNP
creates/VBZ
./.
He/PRP
controls/VBZ
this/DT
counterpoint/NN
like/IN
a/DT
novelistic/JJ
Bach/NN
,/,
reaching/VBG
an/DT
audacious/JJ
extreme/NN
in/IN
a/DT
hilarious/JJ
chapter/NN
in/IN
which/WDT
the/DT
``/``
Vargas/NNP
Llosa/NNP
''/''
voice/NN
relates/VBZ
his/PRP$
adventures/NNS
as/IN
an/DT
inept/JJ
television/NN
newsman/NN
./.
But/CC
the/DT
joke/NN
turns/VBZ
serious/JJ
when/WRB
a/DT
reportage/NN
takes/VBZ
him/PRP
to/TO
Amazonia/NNP
and/CC
he/PRP
encounters/VBZ
the/DT
missionaries/NNS
who/WP
know/VBP
more/JJR
than/IN
anyone/NN
else/RB
about/IN
the/DT
Machiguengas/NNPS
./.
By/IN
this/DT
point/NN
,/,
the/DT
narrator/NN
has/VBZ
become/VBN
obsessed/JJ
with/IN
finding/VBG
out/RP
about/IN
the/DT
Machiguenga/NNP
storytellers/NNS
,/,
who/WP
,/,
he/PRP
had/VBD
heard/VBN
years/NNS
before/RB
,/,
functioned/VBD
like/IN
cultural/JJ
glue/NN
for/IN
a/DT
tribe/NN
split/VBN
into/IN
many/JJ
small/JJ
bands/NNS
in/IN
constant/JJ
motion/NN
through/IN
the/DT
jungle/NN
./.
The/DT
storytellers/NNS
traveled/VBD
among/IN
the/DT
bands/NNS
,/,
reminding/VBG
them/PRP
of/IN
their/PRP$
identity/NN
./.
But/CC
why/WRB
would/MD
no/DT
Machiguenga/NNP
the/DT
narrator/NN
meets/VBZ
during/IN
his/PRP$
reportage/NN
even/RB
admit/VB
that/IN
there/EX
were/VBD
storytellers/NNS
?/.
The/DT
narrator/NN
eventually/RB
deduces/VBZ
the/DT
extraordinary/JJ
answer/NN
,/,
which/WDT
is/VBZ
confirmed/VBN
in/IN
a/DT
literally/RB
Kafkaesque/JJ
manner/NN
by/IN
a/DT
storyteller/NN
in/IN
the/DT
next/JJ
chapter/NN
./.
I/PRP
am/VBP
trying/VBG
to/TO
give/VB
away/RP
as/RB
little/JJ
as/IN
possible/JJ
,/,
but/CC
this/DT
is/VBZ
not/RB
really/RB
a/DT
mystery/NN
or/CC
some/DT
kind/NN
of/IN
jungle/NN
thriller/NN
./.
It/PRP
will/MD
be/VB
read/VBN
for/IN
the/DT
brilliant/JJ
clash/NN
of/IN
styles/NNS
of/IN
narration/NN
and/CC
the/DT
even/RB
more/RBR
brilliant/JJ
way/NN
that/IN
they/PRP
have/VBP
been/VBN
tied/VBN
together/RB
into/IN
a/DT
large/JJ
metaphor/NN
for/IN
literature/NN
and/CC
its/PRP$
function/NN
in/IN
society/NN
./.
A/DT
baby/NN
boom/NN
in/IN
sub-Saharan/JJ
Africa/NNP
,/,
the/DT
world/NN
's/POS
poorest/JJS
region/NN
,/,
poses/VBZ
a/DT
threat/NN
for/IN
the/DT
area/NN
's/POS
future/NN
./.
The/DT
region/NN
's/POS
population/NN
,/,
currently/RB
estimated/VBN
at/IN
some/DT
500/CD
million/CD
people/NNS
,/,
is/VBZ
growing/VBG
by/IN
3.2/CD
%/NN
a/DT
year/NN
--/:
``/``
faster/RBR
than/IN
any/DT
major/JJ
region/NN
has/VBZ
ever/RB
experienced/VBN
over/IN
a/DT
sustained/JJ
period/NN
,/,
''/''
the/DT
World/NNP
Bank/NNP
noted/VBD
in/IN
a/DT
recent/JJ
review/NN
of/IN
the/DT
region/NN
between/IN
the/DT
great/JJ
desert/NN
and/CC
South/NNP
Africa/NNP
./.
This/DT
is/VBZ
more/JJR
than/IN
six/CD
times/NNS
the/DT
rate/NN
for/IN
industrial/JJ
nations/NNS
./.
``/``
Rapid/JJ
population/NN
growth/NN
impedes/VBZ
sub-Saharan/JJ
Africa/NNP
's/POS
progress/NN
toward/IN
virtually/RB
all/PDT
its/PRP$
major/JJ
goals/NNS
,/,
''/''
including/VBG
higher/JJR
living/NN
standards/NNS
,/,
the/DT
bank/NN
said/VBD
./.
Noting/VBG
that/DT
traditional/JJ
African/JJ
culture/NN
respects/VBZ
a/DT
woman/NN
with/IN
many/JJ
offspring/NNS
,/,
it/PRP
said/VBD
substantial/JJ
resources/NNS
,/,
including/VBG
foreign/JJ
aid/NN
,/,
are/VBP
needed/VBN
to/TO
effect/VB
change/NN
./.
Otherwise/RB
,/,
the/DT
bank/NN
said/VBD
,/,
``/``
By/IN
the/DT
time/NN
a/DT
child/NN
born/VBN
today/NN
is/VBZ
22/CD
,/,
if/IN
present/JJ
trends/NNS
continue/VBP
,/,
sub-Saharan/JJ
Africa/NNP
's/POS
population/NN
will/MD
have/VB
doubled/VBN
./.
When/WRB
that/DT
child/NN
is/VBZ
40/CD
,/,
it/PRP
will/MD
have/VB
quadrupled/VBN
./.
''/''
West/NNP
Germany/NNP
's/POS
Lufthansa/NN
has/VBZ
agreed/VBN
to/TO
buy/VB
a/DT
10/CD
%/NN
stake/NN
in/IN
Austrian/NNP
Airlines/NNP
when/WRB
the/DT
Austrian/JJ
government/NN
continues/VBZ
next/JJ
spring/NN
to/TO
sell/VB
parts/NNS
of/IN
the/DT
carrier/NN
to/TO
the/DT
public/NN
,/,
an/DT
Austrian/NNP
Airlines/NNP
spokesman/NN
said/VBD
./.
Swissair/NNP
will/NN
at/IN
the/DT
same/JJ
time/NN
raise/VB
its/PRP$
stake/NN
in/IN
Austrian/NNP
Airlines/NNP
to/TO
10/CD
%/NN
from/IN
the/DT
current/JJ
8/CD
%/NN
holding/NN
,/,
he/PRP
added/VBD
./.
Elsewhere/RB
,/,
Singapore/NNP
Airlines/NNP
Ltd./NNP
,/,
following/VBG
its/PRP$
recently/RB
announced/VBN
tie-up/NN
with/IN
Delta/NNP
Air/NNP
Lines/NNP
Inc./NNP
,/,
is/VBZ
now/RB
``/``
contemplating/VBG
an/DT
alliance/NN
''/''
with/IN
one/CD
of/IN
several/JJ
European/JJ
carriers/NNS
,/,
Chairman/NNP
J.Y./NNP
Pillay/NNP
said/VBD
./.
King/NNP
Fahd/NNP
of/IN
Saudi/NNP
Arabia/NNP
dismissed/VBD
as/IN
untrue/JJ
allegations/NNS
that/IN
his/PRP$
country/NN
's/POS
relations/NNS
with/IN
Kuwait/NNP
were/VBD
marred/VBN
by/IN
the/DT
Saudis/NNPS
'/POS
execution/NN
last/JJ
month/NN
of/IN
16/CD
Kuwaiti/JJ
Shiites/NNPS
;/:
the/DT
Shiites/NNPS
had/VBD
been/VBN
convicted/VBN
for/IN
bombings/NNS
at/IN
Mecca/NNP
./.
The/DT
king/NN
stressed/VBD
to/TO
the/DT
Kuwaiti/JJ
Al-Seyassah/NNP
newspaper/NN
that/IN
the/DT
terrorists/NNS
were/VBD
given/VBN
a/DT
fair/JJ
trial/NN
in/IN
accordance/NN
with/IN
Islamic/JJ
law/NN
./.
``/``
Those/DT
people/NNS
have/VB
been/VBN
convicted/VBN
after/IN
committing/VBG
an/DT
awful/JJ
crime/NN
,/,
''/''
the/DT
king/NN
said/VBD
./.
The/DT
Kuwaiti/JJ
government/NN
has/VBZ
n't/RB
issued/VBN
any/DT
comment/NN
on/IN
the/DT
executions/NNS
./.
Israel/NNP
is/VBZ
ending/VBG
six/CD
weeks/NNS
of/IN
seizing/VBG
property/NN
from/IN
Palestinians/NNPS
who/WP
refuse/VBP
to/TO
pay/VB
income/NN
and/CC
value-added/JJ
taxes/NNS
in/IN
the/DT
occupied/VBN
West/NNP
Bank/NNP
town/NN
of/IN
Beit/NNP
Sahour/NNP
,/,
despite/IN
having/VBG
failed/VBN
to/TO
break/VB
the/DT
revolt/NN
,/,
security/NN
sources/NNS
said/VBD
./.
Troops/NNS
and/CC
tax/NN
collectors/NNS
have/VBP
confiscated/VBN
cars/NNS
,/,
furniture/NN
and/CC
goods/NNS
valued/VBN
at/IN
about/RB
$/$
1.5/CD
million/CD
from/IN
residents/NNS
of/IN
the/DT
mainly/RB
Christian/JJ
middle-class/JJ
town/NN
,/,
sparking/VBG
international/JJ
protests/NNS
./.
The/DT
army/NN
gave/VBD
no/DT
explanation/NN
for/IN
calling/VBG
off/RP
the/DT
seizures/NNS
,/,
less/RBR
than/IN
a/DT
month/NN
after/IN
Defense/NNP
Minister/NNP
Yitzhak/NNP
Rabin/NNP
vowed/VBD
to/TO
break/VB
the/DT
tax/NN
rebels/NNS
./.
The/DT
Asian/NNP
Development/NNP
Bank/NNP
denied/VBD
media/NN
speculation/NN
that/IN
it/PRP
's/VBZ
about/RB
to/TO
resume/VB
lending/VBG
to/TO
China/NNP
./.
The/DT
bank/NN
cut/VBD
off/RP
loans/NNS
to/TO
the/DT
country/NN
in/IN
the/DT
wake/NN
of/IN
the/DT
June/NNP
4/CD
massacre/NN
in/IN
Beijing/NNP
./.
The/DT
ADB/NNP
staff/NN
is/VBZ
continuing/VBG
to/TO
``/``
prepare/VB
loan/NN
proposals/NNS
for/IN
China/NNP
''/''
to/TO
present/VB
to/TO
the/DT
bank/NN
's/POS
board/NN
,/,
said/VBD
R.D./NNP
Pacheco/NNP
,/,
the/DT
bank/NN
's/POS
chief/JJ
information/NN
officer/NN
./.
Other/JJ
ADB/NNP
officials/NNS
said/VBD
the/DT
board/NN
was/VBD
n't/RB
ready/JJ
to/TO
consider/VB
resuming/VBG
loans/NNS
to/TO
China/NNP
because/IN
leading/JJ
ADB/NNP
members/NNS
,/,
including/VBG
the/DT
U.S./NNP
and/CC
Japan/NNP
,/,
remain/VBP
opposed/JJ
to/TO
a/DT
return/NN
to/TO
normal/JJ
business/NN
with/IN
Beijing/NNP
./.
As/IN
Japan/NNP
formally/RB
announced/VBD
it/PRP
's/VBZ
joining/VBG
an/DT
international/JJ
ban/NN
on/IN
trading/VBG
ivory/NN
,/,
hundreds/NNS
of/IN
angry/JJ
ivory/NN
traders/NNS
and/CC
carvers/NNS
marched/VBD
in/IN
downtown/JJ
Hong/NNP
Kong/NNP
to/TO
protest/VB
the/DT
ban/NN
./.
Some/DT
of/IN
the/DT
marchers/NNS
presented/VBD
a/DT
petition/NN
to/TO
the/DT
U.S./NNP
consulate/NN
demanding/VBG
that/IN
Washington/NNP
,/,
which/WDT
earlier/RBR
banned/VBD
the/DT
import/NN
of/IN
ivory/NN
,/,
help/VB
the/DT
endangered/JJ
industry/NN
./.
Hong/NNP
Kong/NNP
traders/NNS
have/VBP
until/IN
Jan./NNP
19/CD
to/TO
sell/VB
off/RP
their/PRP$
stockpile/NN
of/IN
670/CD
tons/NNS
of/IN
ivory/NN
./.
Environmental/JJ
groups/NNS
urged/VBD
Japan/NNP
to/TO
stop/VB
importing/VBG
timber/NN
from/IN
Malaysia/NNP
's/POS
Sarawak/NNP
state/NN
,/,
where/WRB
they/PRP
say/VBP
loggers/NNS
are/VBP
destroying/VBG
rain/NN
forests/NNS
and/CC
trampling/VBG
on/IN
the/DT
rights/NNS
of/IN
natives/NNS
./.
Japan/NNP
imports/VBZ
about/RB
50/CD
%/NN
of/IN
the/DT
logs/NNS
exported/VBN
from/IN
the/DT
state/NN
,/,
which/WDT
is/VBZ
on/IN
the/DT
island/NN
of/IN
Borneo/NNP
./.
The/DT
call/NN
came/VBD
as/IN
the/DT
council/NN
of/IN
the/DT
International/NNP
Tropical/NNP
Timber/NNP
Organization/NNP
opened/VBD
a/DT
nine-day/JJ
session/NN
in/IN
the/DT
Japanese/JJ
city/NN
of/IN
Yokohama/NNP
./.
Dr./NNP
Mikhail/NNP
Kavanagh/NNP
,/,
an/DT
official/NN
of/IN
the/DT
World/NNP
Wide/NNP
Fund/NNP
for/IN
Nature/NNP
,/,
said/VBD
that/IN
``/``
anything/NN
that/WDT
the/DT
Japanese/NNPS
can/MD
do/VB
to/TO
influence/VB
the/DT
trade/NN
is/VBZ
going/VBG
to/TO
come/VB
straight/RB
back/RB
in/RB
to/TO
influence/VB
how/WRB
the/DT
forests/NNS
are/VBP
managed/VBN
./.
''/''
He/PRP
urged/VBD
Japan/NNP
to/TO
reduce/VB
``/``
wasteful/JJ
use/NN
of/IN
tropical/JJ
timbers/NNS
,/,
''/''
such/JJ
as/IN
disposable/JJ
chopsticks/NNS
./.
One/CD
study/NN
group/NN
says/VBZ
Japan/NNP
's/POS
consumption/NN
of/IN
disposable/JJ
chopsticks/NNS
has/VBZ
doubled/VBN
in/IN
the/DT
past/JJ
decade/NN
,/,
reaching/VBG
20.5/CD
billion/CD
pairs/NNS
in/IN
1988/CD
./.
Pravda/NNP
said/VBD
that/IN
Nikolai/NNP
Vasilenko/NNP
,/,
a/DT
Soviet/NNP
farmer/NN
,/,
dug/VBD
up/IN
a/DT
gold/NN
bar/NN
valued/VBN
at/IN
$/$
235,000/CD
,/,
but/CC
consumer-goods/NNS
shortages/NNS
left/VBD
him/PRP
little/JJ
to/TO
spend/VB
it/PRP
on/IN
during/IN
a/DT
trip/NN
to/TO
Vladivostok/NNP
./.
He/PRP
wanted/VBD
to/TO
buy/VB
,/,
but/CC
could/MD
n't/RB
find/VB
,/,
a/DT
shaving/NN
brush/NN
,/,
a/DT
sewing/NN
machine/NN
and/CC
a/DT
colander/NN
.../:
China/NNP
is/VBZ
facing/VBG
a/DT
musical/JJ
talent/NN
shortage/NN
because/IN
top/JJ
artists/NNS
are/VBP
leaving/VBG
for/IN
foreign/JJ
countries/NNS
,/,
the/DT
China/NNP
Youth/NNP
News/NNP
said/VBD
./.
The/DT
official/NN
daily/RB
said/VBD
that/IN
470/CD
musicians/NNS
went/VBD
abroad/RB
at/IN
their/PRP$
own/JJ
expense/NN
in/IN
the/DT
past/JJ
decade/NN
,/,
and/CC
it/PRP
implied/VBD
that/IN
few/JJ
are/VBP
likely/JJ
to/TO
return/VB
./.
Analyses/NNS
of/IN
why/WRB
currencies/NNS
do/VBP
what/WP
they/PRP
do/VBP
,/,
losing/VBG
or/CC
gaining/VBG
value/NN
against/IN
goods/NNS
or/CC
each/DT
other/JJ
,/,
are/VBP
a/DT
favorite/JJ
pursuit/NN
of/IN
economists/NNS
./.
They/PRP
also/RB
are/VBP
often/RB
opaque/JJ
to/TO
non-economists/NNS
./.
Eyes/NNS
glaze/VBP
over/IN
when/WRB
monetarists/NNS
talk/VBP
about/IN
base/JJ
money/NN
,/,
velocity/NN
or/CC
purchasing/NN
power/NN
parity/NN
./.
Anyone/NN
wondering/VBG
about/IN
the/DT
subject/NN
's/POS
importance/NN
,/,
however/RB
,/,
should/MD
ask/VB
Nigel/NNP
Lawson/NNP
,/,
who/WP
resigned/VBD
last/JJ
week/NN
as/IN
Margaret/NNP
Thatcher/NNP
's/POS
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
amid/IN
political/JJ
turmoil/NN
generated/VBN
by/IN
Britain/NNP
's/POS
drift/NN
toward/IN
stagflation/NN
./.
Britain/NNP
's/POS
inflation/NN
probably/RB
is/VBZ
traceable/JJ
in/IN
part/NN
to/TO
Mr./NNP
Lawson/NNP
's/POS
failure/NN
to/TO
get/VB
the/DT
pound-deutsche/JJ
mark/NN
exchange/NN
rate/NN
right/JJ
./.
Money/NN
's/POS
importance/NN
is/VBZ
central/JJ
to/TO
a/DT
genteel/JJ
debate/NN
now/RB
under/IN
way/NN
between/IN
two/CD
U.S./NNP
monetarist/JJ
camps/NNS
over/IN
something/NN
called/VBN
the/DT
``/``
world/NN
dollar/NN
base/NN
''/''
(/(
WDB/NN
One/CD
economic/JJ
model/NN
fashioned/VBN
out/IN
of/IN
this/DT
concept/NN
is/VBZ
predicting/VBG
a/DT
U.S./NNP
recession/NN
late/RB
this/DT
year/NN
or/CC
early/RB
next/JJ
year/NN
./.
Whether/IN
the/DT
prediction/NN
is/VBZ
correct/JJ
--/:
and/CC
with/IN
only/RB
two/CD
months/NNS
left/VBN
in/IN
1989/CD
time/NN
soon/RB
will/MD
tell/VB
--/:
the/DT
debate/NN
at/IN
least/JJS
is/VBZ
a/DT
useful/JJ
reminder/NN
that/IN
the/DT
U.S./NNP
dollar/NN
is/VBZ
not/RB
just/RB
a/DT
national/JJ
,/,
but/CC
an/DT
international/JJ
currency/NN
./.
If/IN
U.S./NNP
monetary/JJ
policy/NN
goes/VBZ
astray/RB
it/PRP
will/MD
have/VB
repercussions/NNS
well/RB
beyond/IN
those/DT
that/WDT
unseated/VBD
the/DT
estimable/JJ
Mr./NNP
Lawson/NNP
./.
The/DT
WDB/NN
model/NN
in/IN
question/NN
is/VBZ
a/DT
product/NN
of/IN
an/DT
upstart/JJ
economics/NNS
shop/NN
called/VBN
Bell/NNP
Mueller/NNP
Cannon/NNP
Inc/NNP
./.
BMC/NNP
When/WRB
Goldman/NNP
Sachs/NNP
challenged/VBD
the/DT
BMC/NNP
recession/NN
forecast/NN
in/IN
its/PRP$
economic/JJ
newsletter/NN
a/DT
few/JJ
weeks/NNS
ago/RB
,/,
the/DT
BMC/NNP
folks/NNS
were/VBD
delighted/VBN
./.
Even/RB
though/IN
critical/JJ
,/,
it/PRP
was/VBD
just/RB
the/DT
kind/NN
of/IN
attention/NN
they/PRP
were/VBD
seeking/VBG
./.
So/IN
they/PRP
fired/VBD
back/RP
at/IN
the/DT
Goldman/NNP
Sachs/NNP
objections/NNS
in/IN
their/PRP$
own/JJ
economics/NNS
letter/NN
,/,
``/``
The/DT
BMC/NNP
Report/NNP
./.
''/''
They/PRP
also/RB
arranged/VBD
a/DT
luncheon/NN
in/IN
New/NNP
York/NNP
to/TO
further/RB
explain/VB
their/PRP$
forecast/NN
and/CC
solicit/VB
new/JJ
clients/NNS
./.
The/DT
BMC/NNP
folks/NNS
are/VBP
n't/RB
really/RB
amateurs/NNS
at/IN
intellectual/JJ
dueling/NN
./.
President/NNP
Jeffrey/NNP
Bell/NNP
in/IN
1978/CD
upset/VBD
longtime/JJ
New/NNP
Jersey/NNP
Republican/NNP
Senator/NNP
Clifford/NNP
Case/NNP
in/IN
a/DT
primary/NN
and/CC
made/VBD
an/DT
unsuccessful/JJ
run/NN
at/IN
Bill/NNP
Bradley/NNP
's/POS
U.S./NNP
Senate/NNP
seat/NN
./.
John/NNP
Mueller/NNP
,/,
BMC/NNP
's/POS
vice/NN
president/NN
and/CC
chief/JJ
economist/NN
,/,
spent/VBD
10/CD
years/NNS
on/IN
the/DT
staff/NN
of/IN
Rep./NNP
Jack/NNP
Kemp/NNP
,/,
sharpening/VBG
his/PRP$
political/JJ
skills/NNS
and/CC
providing/VBG
analysis/NN
to/TO
back/VB
up/RP
the/DT
congressman/NN
's/POS
supply-side/JJ
arguments/NNS
./.
So/RB
even/RB
though/IN
BMC/NNP
is/VBZ
only/RB
18/CD
months/NNS
old/JJ
,/,
its/PRP$
principals/NNS
have/VBP
been/VBN
part/NN
of/IN
the/DT
national/JJ
economic/JJ
debate/NN
for/IN
years/NNS
./.
What/WP
is/VBZ
the/DT
world/NN
dollar/NN
base/NN
?/.
An/DT
article/NN
on/IN
these/DT
pages/NNS
by/IN
Mr./NNP
Mueller/NNP
on/IN
June/NNP
29/CD
touched/VBD
off/RP
the/DT
debate/NN
with/IN
Goldman/NNP
Sachs/NNP
./.
It/PRP
defined/VBD
the/DT
WDB/NN
as/RB
not/RB
only/RB
currency/NN
and/CC
commercial/JJ
bank/NN
reserves/NNS
created/VBN
by/IN
the/DT
Federal/NNP
Reserve/NNP
,/,
but/CC
also/RB
the/DT
sum/NN
of/IN
dollar/NN
reserves/NNS
held/VBN
by/IN
foreign/JJ
central/JJ
banks/NNS
./.
``/``
The/DT
world/NN
dollar/NN
base/NN
,/,
in/IN
fact/NN
,/,
is/VBZ
analogous/JJ
to/TO
the/DT
world/NN
stock/NN
of/IN
monetary/JJ
gold/NN
under/IN
the/DT
classical/JJ
gold/NN
standard/NN
,/,
''/''
wrote/VBD
Mr./NNP
Mueller/NNP
./.
BMC/NNP
says/VBZ
it/PRP
was/VBD
able/JJ
to/TO
predict/VB
the/DT
rise/NN
in/IN
inflation/NN
in/IN
the/DT
U.S./NNP
early/RB
this/DT
year/NN
from/IN
observing/VBG
rapid/JJ
growth/NN
in/IN
the/DT
world/NN
dollar/NN
base/NN
./.
Its/PRP$
recession/NN
,/,
or/CC
stagflation/NN
,/,
forecast/NN
is/VBZ
based/VBN
on/IN
the/DT
calculation/NN
that/IN
after/IN
growing/VBG
at/IN
a/DT
14/CD
%/NN
annual/JJ
rate/NN
,/,
the/DT
WDB/NN
has/VBZ
since/IN
come/VBN
to/TO
a/DT
standstill/NN
./.
Goldman/NNP
Sachs/NNP
snapped/VBD
back/RP
that/IN
the/DT
WDB/NNP
is/VBZ
not/RB
an/DT
accurate/JJ
predictive/JJ
tool/NN
because/IN
dollar/NN
reserves/NNS
in/IN
central/JJ
banks/NNS
do/VBP
not/RB
dictate/VB
how/WRB
much/JJ
money/NN
there/RB
is/VBZ
in/IN
the/DT
world/NN
./.
``/``
The/DT
Bundesbank/NNP
might/MD
be/VB
rather/RB
surprised/VBN
to/TO
be/VB
told/VBN
that/IN
dollar/NN
purchases/NNS
and/CC
sales/NNS
were/VBD
their/PRP$
only/JJ
instrument/NN
for/IN
monetary/JJ
policy/NN
!/.
''/''
observed/VBD
Goldman/NNP
Sachs/NNP
./.
``/``
Instead/RB
,/,
the/DT
supply/NN
of/IN
money/NN
in/IN
foreign/JJ
countries/NNS
can/MD
be/VB
(/(
and/CC
is/VBZ
)/)
expanded/VBN
and/CC
contracted/VBN
through/IN
open-market/JJ
operations/NNS
just/RB
as/IN
is/VBZ
the/DT
case/NN
in/IN
the/DT
United/NNP
States/NNPS
./.
Foreign/JJ
central/JJ
banks/NNS
buy/VBP
or/CC
sell/VBP
government/NN
securities/NNS
to/TO
add/VB
or/CC
drain/VB
reserves/NNS
from/IN
the/DT
banking/NN
system/NN
./.
''/''
BMC/NNP
replied/VBD
,/,
yes/UH
,/,
but/CC
in/IN
any/DT
monetary/JJ
system/NN
there/EX
is/VBZ
one/CD
``/``
final/JJ
asset/NN
in/IN
which/WDT
all/DT
forms/NNS
of/IN
credit/NN
are/VBP
ultimately/RB
payable/JJ
''/''
and/CC
today/NN
that/DT
final/JJ
asset/NN
is/VBZ
the/DT
U.S./NNP
dollar/NN
./.
Whatever/WDT
track/NN
record/NN
BMC/NNP
is/VBZ
able/JJ
to/TO
achieve/VB
,/,
any/DT
debate/NN
is/VBZ
welcome/JJ
that/IN
focuses/VBZ
on/IN
the/DT
U.S./NNP
dollar/NN
as/IN
the/DT
world/NN
's/POS
primary/JJ
instrument/NN
for/IN
trade/NN
and/CC
investment/NN
among/IN
nations/NNS
and/CC
the/DT
dominant/JJ
foreign/JJ
currency/NN
held/VBN
by/IN
central/JJ
banks/NNS
./.
Over/IN
the/DT
past/JJ
20/CD
years/NNS
or/CC
so/RB
,/,
the/DT
dollar/NN
has/VBZ
followed/VBN
an/DT
erratic/JJ
course/NN
./.
Its/PRP$
periods/NNS
of/IN
weakness/NN
relative/JJ
to/TO
other/JJ
currencies/NNS
correlate/VBP
with/IN
rises/NNS
in/IN
prices/NNS
in/IN
the/DT
U.S/NNP
./.
Mercantilists/NNS
argue/VBP
that/IN
a/DT
weak/JJ
currency/NN
is/VBZ
a/DT
good/JJ
thing/NN
because/IN
it/PRP
makes/VBZ
a/DT
nation/NN
's/POS
products/NNS
more/RBR
competitive/JJ
./.
But/CC
that/DT
cherished/JJ
notion/NN
may/MD
have/VB
influenced/VBN
Mr./NNP
Lawson/NNP
to/TO
peg/VB
the/DT
pound/NN
too/RB
low/JJ
,/,
causing/VBG
Britain/NNP
to/TO
import/VB
all/DT
of/IN
Europe/NNP
's/POS
inflationary/JJ
pressures/NNS
./.
A/DT
weak/JJ
currency/NN
creates/VBZ
bargains/NNS
for/IN
foreign/JJ
buyers/NNS
,/,
sometimes/RB
pushing/VBG
demand/NN
beyond/IN
a/DT
nation/NN
's/POS
productive/JJ
capacity/NN
and/CC
forcing/VBG
prices/NNS
upward/RB
./.
Criticisms/NNP
of/IN
the/DT
U.S./NNP
Treasury/NNP
for/IN
agreeing/VBG
to/TO
participate/VB
in/IN
an/DT
international/JJ
effort/NN
to/TO
drive/VB
down/RP
the/DT
dollar/NN
last/JJ
month/NN
are/VBP
based/VBN
on/IN
that/DT
danger/NN
./.
The/DT
U.S./NNP
,/,
because/IN
of/IN
the/DT
dollar/NN
's/POS
world/NN
role/NN
,/,
also/RB
has/VBZ
exported/VBN
inflation/NN
at/IN
times/NNS
./.
When/WRB
other/JJ
central/JJ
banks/NNS
become/VBP
concerned/JJ
about/IN
a/DT
falling/VBG
dollar/NN
and/CC
try/VB
to/TO
support/VB
it/PRP
by/IN
buying/VBG
dollars/NNS
with/IN
their/PRP$
own/JJ
currencies/NNS
,/,
it/PRP
can/MD
inflate/VB
the/DT
supply/NN
of/IN
their/PRP$
own/JJ
currencies/NNS
./.
U.S./NNP
monetary/JJ
policies/NNS
ultimately/RB
will/MD
determine/VB
whether/IN
other/JJ
nations/NNS
are/VBP
willing/JJ
to/TO
accept/VB
American/JJ
economic/JJ
hegemony/NN
./.
Their/PRP$
challenges/NNS
to/TO
that/DT
hegemony/NN
are/VBP
probably/RB
a/DT
good/JJ
thing/NN
./.
Because/IN
of/IN
America/NNP
's/POS
international/JJ
responsibilities/NNS
,/,
it/PRP
is/VBZ
less/RBR
free/JJ
to/TO
engage/VB
in/IN
beggar-thy-neighbor/JJ
tactics/NNS
,/,
through/IN
protectionism/NN
or/CC
attempts/NNS
to/TO
manipulate/VB
currency/NN
relationships/NNS
to/TO
its/PRP$
own/JJ
advantage/NN
./.
The/DT
U.S./NNP
Congress/NNP
and/CC
administration/NN
need/VBP
frequent/JJ
reminders/NNS
of/IN
that/DT
responsibility/NN
./.
They/PRP
also/RB
need/VBP
reminders/NNS
that/IN
if/IN
they/PRP
shoulder/VBP
the/DT
burden/NN
well/RB
,/,
the/DT
U.S./NNP
can/MD
exercise/VB
enormous/JJ
power/NN
on/IN
behalf/NN
of/IN
a/DT
sound/JJ
world/NN
economy/NN
,/,
with/IN
benefits/NNS
to/TO
all/DT
./.
The/DT
best/JJS
test/NN
of/IN
how/WRB
well/RB
that/DT
responsibility/NN
is/VBZ
being/VBG
exercised/VBN
can/MD
be/VB
found/VBN
simply/RB
in/IN
how/WRB
much/RB
the/DT
dollar/NN
holds/VBZ
its/PRP$
value/NN
relative/JJ
to/TO
goods/NNS
and/CC
services/NNS
./.
But/CC
in/IN
a/DT
practical/JJ
world/NN
,/,
currency/NN
relationships/NNS
ca/MD
n't/RB
be/VB
ignored/VBN
either/RB
./.
Whatever/WDT
else/RB
the/DT
BMC/NNP
model/NN
accomplishes/VBZ
,/,
it/PRP
furthers/VBZ
the/DT
discussion/NN
of/IN
how/WRB
to/TO
achieve/VB
world/NN
monetary/JJ
order/NN
./.
Given/VBN
the/DT
damaging/JJ
effects/NNS
of/IN
monetary/JJ
disorders/NNS
of/IN
the/DT
past/NN
,/,
that/DT
is/VBZ
something/NN
much/RB
to/TO
be/VB
desired/VBN
./.
Just/RB
ask/VB
Nigel/NNP
Lawson/NNP
./.
Four/NNP
Seasons/NNPS
Hotels/NNPS
Inc./NNP
announced/VBD
a/DT
2-for-1/JJ
stock/NN
split/NN
and/CC
said/VBD
it/PRP
plans/VBZ
to/TO
increase/VB
its/PRP$
annual/JJ
dividend/NN
./.
Separately/RB
,/,
the/DT
hotel/NN
chain/NN
posted/VBD
a/DT
13/CD
%/NN
increase/NN
in/IN
third-quarter/JJ
earnings/NNS
to/TO
3.4/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
2.89/CD
million/CD
34/CD
Canadian/JJ
cents/NNS
,/,
compared/VBN
with/IN
C$/$
3/CD
million/CD
,/,
or/CC
31/CD
Canadian/JJ
cents/NNS
./.
Revenue/NN
for/IN
the/DT
quarter/NN
fell/VBD
6/CD
%/NN
to/TO
C$/$
50.4/CD
million/CD
,/,
from/IN
C$/$
53.7/CD
million/CD
the/DT
year/NN
earlier/RBR
./.
The/DT
company/NN
said/VBD
it/PRP
approved/VBD
an/DT
increase/NN
in/IN
its/PRP$
annual/JJ
dividend/NN
rate/NN
to/TO
22/CD
Canadian/JJ
cents/NNS
,/,
from/IN
19/CD
Canadian/JJ
cents/NNS
./.
The/DT
dividend/NN
will/MD
be/VB
paid/VBN
semiannually/RB
,/,
although/IN
pay/NN
and/CC
record/NN
dates/NNS
have/VBP
n't/RB
yet/RB
been/VBN
determined/VBN
./.
A/DT
company/NN
spokeswoman/NN
said/VBD
the/DT
stock/NN
split/NN
,/,
planned/VBN
for/IN
Jan./NNP
8/CD
,/,
is/VBZ
intended/VBN
to/TO
increase/VB
trading/VBG
in/IN
the/DT
stock/NN
./.
On/IN
the/DT
Toronto/NNP
Stock/NNP
Exchange/NNP
yesterday/NN
,/,
Four/NNP
Seasons/NNPS
gained/VBD
C$/$
1.50/CD
to/TO
C$/$
35.75/CD
in/IN
light/JJ
trading/NN
./.
The/DT
company/NN
currently/RB
has/VBZ
7.2/CD
million/CD
subordinate/JJ
voting/NN
shares/NNS
outstanding/JJ
./.
The/DT
company/NN
also/RB
said/VBD
Isadore/NNP
Sharp/NNP
,/,
chairman/NN
and/CC
president/NN
,/,
plans/VBZ
to/TO
terminate/VB
his/PRP$
option/NN
to/TO
acquire/VB
500,000/CD
shares/NNS
so/IN
they/PRP
can/MD
be/VB
distributed/VBN
to/TO
senior/JJ
executives/NNS
under/IN
a/DT
proposed/JJ
incentive/NN
plan/NN
./.
In/IN
return/NN
,/,
the/DT
company/NN
would/MD
reimburse/VB
Mr./NNP
Sharp/NNP
in/IN
the/DT
event/NN
of/IN
any/DT
future/JJ
sale/NN
of/IN
control/NN
of/IN
the/DT
company/NN
./.
The/DT
Toronto/NNP
Stock/NNP
Exchange/NNP
limits/VBZ
the/DT
number/NN
of/IN
options/NNS
a/DT
company/NN
can/MD
issue/VB
to/TO
employees/NNS
./.
The/DT
incentive/NN
plan/NN
is/VBZ
subject/JJ
to/TO
approval/NN
by/IN
a/DT
majority/NN
of/IN
holders/NNS
of/IN
the/DT
subordinate/JJ
voting/NN
shares/NNS
,/,
other/JJ
than/IN
Mr./NNP
Sharp/NNP
and/CC
his/PRP$
associates/NNS
,/,
at/IN
a/DT
special/JJ
meeting/NN
to/TO
be/VB
held/VBN
Dec./NNP
19/CD
./.
The/DT
Four/NNP
Seasons/NNPS
spokeswoman/NN
said/VBD
Mr./NNP
Sharp/NNP
,/,
who/WP
has/VBZ
an/DT
81/CD
%/NN
voting/NN
stake/NN
in/IN
the/DT
company/NN
,/,
has/VBZ
no/DT
current/JJ
plans/NNS
to/TO
sell/VB
his/PRP$
interest/NN
./.
She/PRP
said/VBD
Mr./NNP
Sharp/NNP
's/POS
stake/NN
wo/MD
n't/RB
be/VB
diluted/VBN
by/IN
the/DT
stock/NN
split/NN
./.
For/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
the/DT
year/NN
,/,
net/NN
rose/VBD
12/CD
%/NN
to/TO
9.2/CD
million/CD
Canadian/JJ
dollars/NNS
,/,
or/CC
93/CD
Canadian/JJ
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
C$/$
8.2/CD
million/CD
,/,
or/CC
84/CD
Canadian/JJ
cents/NNS
a/DT
share/NN
./.
Revenue/NN
fell/VBD
to/TO
C$/$
148/CD
million/CD
from/IN
C$/$
162.3/CD
million/CD
./.
It/PRP
was/VBD
a/DT
parent/NN
's/POS
ultimate/JJ
nightmare/NN
./.
As/IN
the/DT
crippled/JJ
jet/NN
prepared/VBD
for/IN
an/DT
emergency/NN
landing/NN
,/,
Sylvia/NNP
Tsao/NNP
wrapped/VBD
her/PRP
23-month-old/JJ
son/NN
,/,
Evan/NNP
,/,
in/IN
blankets/NNS
and/CC
,/,
following/VBG
cabin-crew/NNS
orders/NNS
,/,
placed/VBD
him/PRP
on/IN
the/DT
floor/NN
./.
She/PRP
held/VBD
him/PRP
down/RP
tightly/RB
,/,
trying/VBG
to/TO
protect/VB
him/PRP
./.
``/``
Suddenly/RB
,/,
the/DT
world/NN
seemed/VBD
to/TO
end/VB
,/,
''/''
she/PRP
told/VBD
investigators/NNS
later/RB
./.
Crashing/VBG
into/IN
a/DT
cornfield/NN
,/,
United/NNP
Airlines/NNP
'/POS
Flight/NN
232/CD
flipped/VBD
over/RP
,/,
and/CC
she/PRP
lost/VBD
her/PRP$
grip/NN
on/IN
her/PRP$
son/NN
./.
``/``
I/PRP
saw/VBD
for/IN
an/DT
instant/JJ
my/PRP$
son/NN
's/POS
body/NN
floating/VBG
and/CC
flying/VBG
''/''
toward/IN
the/DT
back/NN
of/IN
the/DT
plane/NN
,/,
Ms./NNP
Tsao/NNP
recalled/VBD
./.
When/WRB
the/DT
plane/NN
stopped/VBD
moving/VBG
,/,
she/PRP
frantically/RB
tried/VBD
to/TO
find/VB
him/PRP
./.
But/CC
Evan/NNP
died/VBD
of/IN
smoke/NN
inhalation/NN
./.
July/NNP
's/POS
Sioux/NNP
City/NNP
crash/NN
has/VBZ
fueled/VBN
an/DT
emotionally/RB
charged/JJ
debate/NN
./.
Safety/NN
advocates/NNS
and/CC
members/NNS
of/IN
Congress/NNP
,/,
calling/VBG
babies/NNS
``/``
the/DT
neglected/JJ
population/NN
,/,
''/''
are/VBP
stepping/VBG
up/RP
a/DT
campaign/NN
for/IN
the/DT
mandatory/JJ
use/NN
of/IN
infant/JJ
safety/NN
seats/NNS
on/IN
all/DT
flights/NNS
./.
But/CC
the/DT
Federal/NNP
Aviation/NNP
Administration/NNP
is/VBZ
reluctant/JJ
to/TO
require/VB
separate/JJ
seats/NNS
for/IN
babies/NNS
because/IN
of/IN
the/DT
added/JJ
cost/NN
for/IN
traveling/VBG
parents/NNS
./.
Some/DT
FAA/NNP
officials/NNS
note/VBP
that/IN
few/JJ
infants/NNS
have/VBP
been/VBN
killed/VBN
in/IN
plane/NN
crashes/NNS
,/,
raising/VBG
the/DT
question/NN
of/IN
whether/IN
safety/NN
seats/NNS
really/RB
are/VBP
needed/VBN
./.
A/DT
1981/CD
Harvard/NNP
Medical/NNP
School/NNP
study/NN
that/WDT
scrutinized/VBD
accidents/NNS
in/IN
the/DT
late/JJ
1970s/NNS
concluded/VBD
that/IN
perhaps/RB
three/CD
babies/NNS
would/MD
have/VB
been/VBN
saved/VBN
in/IN
a/DT
five-year/JJ
period/NN
if/IN
safety-seat/NN
use/NN
had/VBD
been/VBN
required/VBN
./.
The/DT
National/NNP
Transportation/NNP
Safety/NNP
Board/NNP
will/MD
take/VB
a/DT
close/JJ
look/NN
at/IN
the/DT
issue/NN
during/IN
four/CD
days/NNS
of/IN
hearings/NNS
that/WDT
begin/VBP
today/NN
on/IN
the/DT
broader/JJR
issue/NN
of/IN
what/WP
caused/VBD
the/DT
crash/NN
that/WDT
killed/VBD
112/CD
people/NNS
./.
``/``
Infants/NNS
'/POS
,/,
toddlers/NNS
'/POS
and/CC
young/JJ
children/NNS
's/POS
safety/NN
should/MD
no/RB
longer/RBR
be/VB
ignored/VBN
as/IN
if/IN
they/PRP
do/VBP
n't/RB
count/VB
,/,
''/''
Mrs./NNP
Tsao/NNP
wrote/VBD
to/TO
the/DT
board/NN
in/IN
advocating/VBG
use/NN
of/IN
the/DT
safety/NN
seats/NNS
./.
All/DT
50/CD
states/NNS
require/VBP
that/IN
small/JJ
children/NNS
be/VB
strapped/VBN
into/IN
safety/NN
seats/NNS
in/IN
cars/NNS
./.
On/IN
planes/NNS
,/,
FAA/NNP
rules/NNS
dictate/VBP
that/IN
children/NNS
two/CD
years/NNS
old/JJ
and/CC
over/RB
have/VB
their/PRP$
own/JJ
tickets/NNS
and/CC
be/VB
strapped/VBN
into/IN
regular/JJ
seats/NNS
,/,
just/RB
as/IN
adults/NNS
are/VBP
./.
Babies/NNS
under/IN
two/CD
may/MD
sit/VB
on/IN
laps/NNS
and/CC
fly/VB
for/IN
free/RB
./.
But/CC
it/PRP
is/VBZ
almost/RB
impossible/JJ
to/TO
keep/VB
hold/VB
of/IN
a/DT
baby/NN
during/IN
an/DT
air/NN
crash/NN
,/,
or/CC
even/RB
in/IN
severe/JJ
turbulence/NN
./.
During/IN
the/DT
Sioux/NNP
City/NNP
crash/NN
,/,
Lori/NNP
Michaelson/NNP
of/IN
Cincinnati/NNP
lost/VBD
her/PRP$
grip/NN
on/IN
her/PRP$
baby/NN
as/IN
the/DT
plane/NN
lurched/VBD
and/CC
tipped/VBD
over/RP
./.
Another/DT
passenger/NN
heard/VBD
one-year-old/JJ
Sabrina/NNP
's/POS
cry/NN
and/CC
pulled/VBD
her/PRP
from/IN
an/DT
overhead/JJ
luggage/NN
compartment/NN
./.
The/DT
FAA/NNP
encourages/VBZ
the/DT
use/NN
of/IN
safety/NN
seats/NNS
,/,
but/CC
in/IN
the/DT
past/JJ
many/JJ
parents/NNS
have/VBP
run/VBN
into/IN
problems/NNS
trying/VBG
to/TO
use/VB
them/PRP
,/,
even/RB
when/WRB
the/DT
plane/NN
was/VBD
only/RB
half-full/JJ
or/CC
they/PRP
had/VBD
bought/VBN
an/DT
extra/JJ
ticket/NN
especially/RB
for/IN
the/DT
baby/NN
./.
When/WRB
Vanessa/NNP
Merton/NNP
,/,
an/DT
associate/JJ
dean/NN
at/IN
Pace/NNP
University/NNP
School/NNP
of/IN
Law/NNP
,/,
decided/VBD
to/TO
take/VB
her/PRP$
young/JJ
son/NN
to/TO
Europe/NNP
last/JJ
spring/NN
,/,
she/PRP
called/VBD
four/CD
carriers/NNS
to/TO
ask/VB
about/IN
their/PRP$
policies/NNS
on/IN
car/NN
seats/NNS
./.
``/``
The/DT
people/NNS
acted/VBD
like/IN
I/PRP
was/VBD
transporting/VBG
heroin/NN
,/,
''/''
she/PRP
says/VBZ
./.
One/CD
reservation/NN
agent/NN
told/VBD
her/PRP
--/:
incorrectly/RB
--/:
that/IN
the/DT
airline/NN
barred/VBD
the/DT
use/NN
of/IN
the/DT
seats/NNS
on/IN
flights/NNS
./.
After/IN
the/DT
Sioux/NNP
City/NNP
crash/NN
,/,
Lori/NNP
Michaelson/NNP
bought/VBD
a/DT
car/NN
seat/NN
for/IN
her/PRP$
daughter/NN
for/IN
the/DT
flight/NN
home/RB
to/TO
Cincinnati/NNS
./.
But/CC
on/IN
one/CD
leg/NN
of/IN
the/DT
trip/NN
,/,
she/PRP
was/VBD
ordered/VBN
by/IN
a/DT
flight/NN
attendant/NN
to/TO
take/VB
Sabrina/NN
out/IN
of/IN
the/DT
seat/NN
and/CC
hold/VB
her/PRP
during/IN
takeoff/NN
and/CC
landing/NN
--/:
the/DT
most/RBS
dangerous/JJ
parts/NNS
of/IN
any/DT
flight/NN
./.
Airlines/NNS
say/VBP
that/IN
such/JJ
mistakes/NNS
are/VBP
decreasing/VBG
in/IN
the/DT
aftermath/NN
of/IN
Sioux/NNP
City/NNP
,/,
but/CC
proponents/NNS
of/IN
the/DT
safety/NN
devices/NNS
say/VBP
they/PRP
still/RB
get/VBP
complaints/NNS
from/IN
parents/NNS
./.
``/``
People/NNS
are/VBP
told/VBN
one/CD
thing/NN
on/IN
the/DT
phone/NN
,/,
another/DT
at/IN
check/NN
in/RP
,/,
another/DT
at/IN
the/DT
gate/NN
,/,
and/CC
another/DT
on/IN
the/DT
plane/NN
,/,
''/''
says/VBZ
Stephanie/NNP
Tombrello/NNP
,/,
executive/JJ
director/NN
of/IN
the/DT
Los/NNP
Angeles/NNP
Area/NNP
Child/NNP
Passenger/NNP
Safety/NNP
Association/NNP
,/,
which/WDT
petitioned/VBD
the/DT
FAA/NNP
in/IN
June/NNP
for/IN
mandatory/JJ
use/NN
of/IN
child-safety/JJ
seats/NNS
./.
The/DT
Association/NNP
of/IN
Flight/NNP
Attendants/NNPS
,/,
the/DT
main/JJ
flight/NN
attendants/NNS
'/POS
union/NN
,/,
is/VBZ
strongly/RB
backing/VBG
that/DT
request/NN
./.
The/DT
FAA/NNP
argues/VBZ
that/IN
requiring/VBG
safety/NN
seats/NNS
for/IN
all/DT
babies/NNS
might/MD
actually/RB
diminish/VB
,/,
not/RB
enhance/VB
,/,
safety/NN
./.
As/IN
part/NN
of/IN
such/PDT
a/DT
rule/NN
,/,
officials/NNS
say/VBP
,/,
parents/NNS
would/MD
probably/RB
be/VB
required/VBN
to/TO
buy/VB
an/DT
extra/JJ
ticket/NN
for/IN
the/DT
baby/NN
./.
The/DT
increased/JJ
cost/NN
of/IN
flying/VBG
would/MD
inevitably/RB
encourage/VB
some/DT
families/NNS
to/TO
drive/VB
rather/RB
than/IN
fly/VB
,/,
they/PRP
say/VBP
./.
Commercial/JJ
airlines/NNS
have/VBP
the/DT
lowest/JJS
accident/NN
rate/NN
of/IN
all/DT
transportation/NN
modes/NNS
--/:
much/RB
lower/JJR
than/IN
cars/NNS
,/,
for/IN
example/NN
./.
Anthony/NNP
Broderick/NNP
,/,
the/DT
FAA/NNP
's/POS
acting/JJ
executive/NN
director/NN
for/IN
regulatory/JJ
standards/NNS
and/CC
compliance/NN
,/,
contends/VBZ
that/IN
the/DT
current/JJ
rule/NN
is/VBZ
the/DT
best/JJS
approach/NN
because/IN
it/PRP
allows/VBZ
parents/NNS
to/TO
make/VB
their/PRP$
own/JJ
decision/NN
on/IN
whether/IN
to/TO
use/VB
a/DT
safety/NN
seat/NN
./.
But/CC
he/PRP
admits/VBZ
that/IN
the/DT
agency/NN
is/VBZ
in/IN
``/``
a/DT
very/RB
uncomfortable/JJ
position/NN
./.
''/''
He/PRP
says/VBZ
the/DT
agency/NN
soon/RB
will/MD
propose/VB
that/IN
airlines/NNS
be/VB
prohibited/VBN
from/IN
denying/VBG
the/DT
use/NN
of/IN
safety/NN
seats/NNS
./.
Most/JJS
airlines/NNS
do/VBP
n't/RB
prohibit/VB
their/PRP$
use/NN
./.
He/PRP
says/VBZ
the/DT
agency/NN
also/RB
will/MD
seek/VB
public/JJ
comment/NN
on/IN
whether/IN
the/DT
seats/NNS
should/MD
be/VB
required/VBN
./.
Walter/NNP
Coleman/NNP
,/,
vice/NN
president/NN
of/IN
operations/NNS
for/IN
the/DT
Air/NNP
Transport/NNP
Association/NNP
,/,
the/DT
trade/NN
group/NN
for/IN
the/DT
major/JJ
airlines/NNS
,/,
describes/VBZ
the/DT
call/NN
for/IN
safety/NN
seats/NNS
as/IN
``/``
legitimate/JJ
''/''
and/CC
says/VBZ
the/DT
group/NN
is/VBZ
studying/VBG
the/DT
issue/NN
./.
But/CC
privately/RB
some/DT
airline/NN
officials/NNS
fear/VBP
that/IN
if/IN
parents/NNS
must/MD
buy/VB
extra/JJ
tickets/NNS
for/IN
babies/NNS
,/,
whole/JJ
families/NNS
will/MD
stop/VB
flying/VBG
./.
Others/NNS
worry/VBP
that/IN
the/DT
FAA/NNP
might/MD
write/VB
a/DT
rule/NN
forcing/VBG
airlines/NNS
to/TO
pick/VB
up/IN
part/NN
of/IN
the/DT
tab/NN
for/IN
increased/JJ
infant/NN
safety/NN
./.
Generally/RB
,/,
airlines/NNS
say/VBP
they/PRP
welcome/VBP
the/DT
use/NN
of/IN
a/DT
government-approved/JJ
safety/NN
seat/NN
and/CC
will/MD
even/RB
allow/VB
the/DT
restraint/NN
to/TO
take/VB
up/RP
a/DT
regular/JJ
seat/NN
for/IN
free/JJ
if/IN
the/DT
flight/NN
is/VBZ
n't/RB
crowded/VBN
./.
Most/JJS
car/NN
seats/NNS
made/VBN
in/IN
recent/JJ
years/NNS
are/VBP
certified/VBN
for/IN
use/NN
on/IN
aircraft/NN
and/CC
are/VBP
so/RB
marked/VBN
./.
space/NN
can/MD
only/RB
be/VB
guaranteed/VBN
if/IN
a/DT
ticket/NN
is/VBZ
purchased/VBN
./.
What/WP
the/DT
industry/NN
really/RB
wants/VBZ
is/VBZ
some/DT
kind/NN
of/IN
device/NN
that/WDT
would/MD
protect/VB
babies/NNS
without/IN
taking/VBG
up/RP
an/DT
extra/JJ
seat/NN
./.
But/CC
no/DT
one/NN
has/VBZ
come/VBN
up/RP
with/IN
anything/NN
that/WDT
is/VBZ
safer/JJR
in/IN
a/DT
crash/NN
than/IN
the/DT
current/JJ
practice/NN
of/IN
bundling/VBG
babies/NNS
up/RP
and/CC
trying/VBG
to/TO
pin/VB
them/PRP
to/TO
the/DT
floor/NN
./.
Parents/NNS
are/VBP
advised/VBN
against/IN
holding/VBG
the/DT
infants/NNS
,/,
for/IN
fear/NN
that/IN
in/IN
an/DT
accident/NN
the/DT
babies/NNS
could/MD
be/VB
crushed/VBN
by/IN
the/DT
adult/NN
's/POS
weight/NN
./.
Proponents/NNS
of/IN
safety/NN
seats/NNS
are/VBP
turning/VBG
up/RP
the/DT
heat/NN
on/IN
the/DT
FAA/NNP
./.
Yesterday/NN
,/,
Rep./NNP
James/NNP
Lightfoot/NNP
,/,
an/DT
Iowa/NNP
Republican/NNP
,/,
sent/VBD
FAA/NNP
Administrator/NNP
James/NNP
Busey/NNP
a/DT
letter/NN
signed/VBN
by/IN
56/CD
House/NNP
members/NNS
urging/VBG
the/DT
agency/NN
to/TO
require/VB
infant/JJ
safety/NN
seats/NNS
./.
If/IN
the/DT
FAA/NNP
refuses/VBZ
,/,
Rep./NNP
Lightfoot/NNP
says/VBZ
,/,
he/PRP
will/MD
push/VB
legislation/NN
to/TO
require/VB
the/DT
change/NN
./.
First/NNP
Federal/NNP
Bancorp/NNP
Inc./NNP
said/VBD
James/NNP
Clarkson/NNP
,/,
its/PRP$
chairman/NN
,/,
president/NN
and/CC
chief/JJ
executive/NN
officer/NN
,/,
retired/VBD
effective/JJ
yesterday/NN
./.
The/DT
company/NN
also/RB
said/VBD
its/PRP$
board/NN
recently/RB
instituted/VBD
a/DT
review/NN
of/IN
internal/JJ
policies/NNS
and/CC
procedures/NNS
,/,
including/VBG
activities/NNS
conducted/VBN
by/IN
Mr./NNP
Clarkson/NNP
./.
First/NNP
Federal/NNP
said/VBD
Mr./NNP
Clarkson/NNP
,/,
65/CD
years/NNS
old/JJ
,/,
is/VBZ
``/``
fully/RB
cooperating/VBG
in/IN
the/DT
continuing/VBG
review/NN
./.
''/''
``/``
None/NN
of/IN
the/DT
activities/NNS
being/VBG
reviewed/VBN
has/VBZ
any/DT
adverse/JJ
effect/NN
on/IN
the/DT
financial/JJ
condition/NN
of/IN
the/DT
bank/NN
or/CC
its/PRP$
depositors/NNS
,/,
''/''
First/NNP
Federal/NNP
Savings/NNP
Bank/NNP
&/CC
Trust/NNP
's/POS
president/NN
,/,
Leo/NNP
D./NNP
Ottoni/NNP
,/,
said/VBD
./.
First/NNP
Federal/NNP
Savings/NNP
is/VBZ
a/DT
subsidiary/NN
of/IN
First/NNP
Federal/NNP
Bancorp/NNP
./.
The/DT
company/NN
declined/VBD
to/TO
disclose/VB
further/JJ
details/NNS
,/,
but/CC
said/VBD
that/IN
the/DT
inquiry/NN
is/VBZ
continuing/VBG
and/CC
that/IN
it/PRP
was/VBD
n't/RB
forced/VBN
by/IN
banking/VBG
regulators/NNS
./.
First/NNP
Federal/NNP
said/VBD
no/DT
further/JJ
announcements/NNS
are/VBP
expected/VBN
before/IN
the/DT
review/NN
is/VBZ
finished/VBN
./.
First/NNP
Federal/NNP
named/VBD
Mr./NNP
Ottoni/NNP
president/NN
and/CC
chief/JJ
executive/NN
to/TO
succeed/VB
Mr./NNP
Clarkson/NNP
and/CC
elected/VBD
him/PRP
as/IN
a/DT
director/NN
./.
The/DT
post/NN
of/IN
chairman/NN
will/MD
remain/VB
vacant/JJ
indefinitely/RB
,/,
a/DT
company/NN
spokesman/NN
said/VBD
./.
Earlier/RBR
this/DT
month/NN
Mr./NNP
Ottoni/NNP
,/,
64/CD
,/,
was/VBD
named/VBN
acting/VBG
president/NN
and/CC
chief/JJ
executive/NN
of/IN
the/DT
holding/VBG
company/NN
and/CC
the/DT
savings/NNS
bank/NN
unit/NN
./.
Previously/RB
he/PRP
had/VBD
been/VBN
senior/JJ
vice/NN
president/NN
in/IN
charge/NN
of/IN
the/DT
savings/NNS
bank/NN
's/POS
trust/NN
division/NN
./.
Ardent/NNP
Computer/NNP
Corp./NNP
and/CC
Stellar/NNP
Computer/NNP
Inc./NNP
said/VBD
they/PRP
completed/VBD
the/DT
merger/NN
that/IN
the/DT
closely/RB
held/VBN
companies/NNS
announced/VBD
Aug./NNP
30/CD
./.
The/DT
new/JJ
company/NN
,/,
called/VBN
Stardent/NNP
Computer/NNP
Inc./NNP
,/,
also/RB
said/VBD
it/PRP
named/VBD
John/NNP
William/NNP
Poduska/NNP
,/,
former/JJ
chairman/NN
and/CC
chief/JJ
executive/NN
of/IN
Stellar/NNP
,/,
to/TO
the/DT
posts/NNS
of/IN
president/NN
and/CC
chief/JJ
executive/NN
./.
Allen/NNP
H./NNP
Michels/NNP
,/,
Ardent/NNP
's/POS
former/JJ
president/NN
and/CC
chief/JJ
executive/NN
,/,
was/VBD
named/VBN
chairman/NN
of/IN
the/DT
new/JJ
company/NN
./.
The/DT
two/CD
men/NNS
had/VBD
been/VBN
serving/VBG
as/IN
co-chairmen/NNS
and/CC
co-chief/JJ
executive/JJ
officers/NNS
./.
Stardent/NNP
said/VBD
it/PRP
would/MD
combine/VB
its/PRP$
two/CD
product/NN
lines/NNS
--/:
both/DT
high-performance/JJ
graphics/NNS
computers/NNS
--/:
by/IN
the/DT
1991/CD
first/JJ
quarter/NN
./.
Stardent/NNP
will/MD
be/VB
based/VBN
in/IN
Newton/NNP
,/,
Mass./NNP
,/,
but/CC
will/MD
maintain/VB
its/PRP$
operations/NNS
in/IN
Sunnyvale/NNP
,/,
Calif/NNP
./.
Toyota/NNP
Motor/NNP
Corp./NNP
predicted/VBD
its/PRP$
annual/JJ
imports/NNS
will/MD
more/RBR
than/IN
double/VB
by/IN
1992/CD
,/,
growing/VBG
by/IN
250/CD
%/NN
over/IN
the/DT
next/JJ
three/CD
years/NNS
to/TO
about/RB
300/CD
billion/CD
yen/NNS
$/$
2.12/CD
billion/CD
the/DT
company/NN
's/POS
overseas/JJ
manufacturing/NN
operations/NNS
reach/VBP
full/JJ
speed/NN
./.
The/DT
projected/JJ
imports/NNS
comprise/VBP
importation/NN
to/TO
Japan/NNP
and/CC
other/JJ
nations/NNS
of/IN
vehicles/NNS
produced/VBN
at/IN
the/DT
company/NN
's/POS
major/JJ
foreign/JJ
manufacturing/NN
bases/NNS
./.
Toyota/NNP
said/VBD
its/PRP$
import/NN
program/NN
will/MD
specifically/RB
entail/VB
importing/VBG
right-hand/JJ
drive/NN
vehicles/NNS
from/IN
its/PRP$
Georgetown/NNP
,/,
Ky./NNP
,/,
U.S./NNP
plant/NN
./.
``/``
An/DT
ultimate/JJ
target/NN
of/IN
40,000/CD
units/NNS
annually/RB
has/VBZ
been/VBN
set/VBN
for/IN
a/DT
still-to-be-named/JJ
model/NN
,/,
''/''
Toyota/NNP
said/VBD
./.
Toyota/NNP
will/MD
also/RB
begin/VB
importing/VBG
engines/NNS
produced/VBN
at/IN
the/DT
Kentucky/NNP
plant/NN
's/POS
new/JJ
powertrain/NN
operation/NN
./.
Annual/JJ
volume/NN
is/VBZ
expected/VBN
to/TO
reach/VB
100,000/CD
units/NNS
and/CC
will/MD
result/VB
in/IN
additional/JJ
production/NN
and/CC
new/JJ
employment/NN
opportunities/NNS
,/,
Toyota/NNP
said/VBD
./.
It/PRP
added/VBD
that/IN
exports/NNS
of/IN
U.S.-made/JJ
Camrys/NNPS
to/TO
Taiwan/NNP
will/MD
rise/VB
to/TO
10,000/CD
a/DT
year/NN
by/IN
1992/CD
from/IN
a/DT
1989/CD
level/NN
of/IN
4,000/CD
units/NNS
./.
Toyota/NNP
also/RB
announced/VBD
a/DT
number/NN
of/IN
major/JJ
overseas/JJ
purchases/NNS
./.
They/PRP
include/VBP
plans/NNS
to/TO
buy/VB
200/CD
vehicles/NNS
from/IN
U.S./NNP
and/CC
European/JJ
auto/NN
makers/NNS
for/IN
Toyota/NNP
's/POS
Rent-A-Lease/NNP
division/NN
in/IN
Japan/NNP
and/CC
plans/NNS
to/TO
purchase/VB
a/DT
Cray/NNP
Y-MP8-232/NNP
supercomputer/NN
./.
Mitsubishi/NNP
Estate/NNP
Co./NNP
,/,
a/DT
major/JJ
developer/NN
and/CC
property/NN
owner/NN
in/IN
Japan/NNP
,/,
has/VBZ
agreed/VBN
to/TO
pay/VB
$/$
846/CD
million/CD
to/TO
acquire/VB
a/DT
51/CD
%/NN
stake/NN
in/IN
Rockefeller/NNP
Group/NNP
Inc./NNP
,/,
Rockefeller/NNP
officials/NNS
said/VBD
./.
Rockefeller/NNP
Group/NNP
owns/VBZ
the/DT
22-acre/JJ
,/,
19-building/JJ
Rockefeller/NNP
Center/NNP
in/IN
midtown/JJ
Manhattan/NNP
./.
Mitsubishi/NNP
is/VBZ
a/DT
partner/NN
in/IN
Citicorp/NNP
Plaza/NNP
in/IN
Los/NNP
Angeles/NNP
and/CC
Pacwest/NNP
Center/NNP
in/IN
Portland/NNP
,/,
Ore./NNP
,/,
and/CC
owns/VBZ
most/JJS
of/IN
the/DT
land/NN
beneath/IN
Tokyo/NNP
's/POS
Marunouchi/NNP
central/JJ
business/NN
district/NN
,/,
often/RB
referred/VBN
to/TO
as/IN
the/DT
Rockefeller/NNP
Center/NNP
of/IN
Tokyo/NNP
./.
In/IN
1985/CD
,/,
Rockefeller/NNP
Group/NNP
sold/VBD
a/DT
mortgage/NN
on/IN
the/DT
core/NN
of/IN
Rockefeller/NNP
Center/NNP
to/TO
the/DT
public/NN
in/IN
the/DT
form/NN
of/IN
a/DT
real/JJ
estate/NN
investment/NN
trust/NN
./.
The/DT
trust/NN
has/VBZ
an/DT
option/NN
to/TO
convert/VB
its/PRP$
shares/NNS
to/TO
a/DT
71.5/CD
%/NN
equity/NN
stake/NN
in/IN
the/DT
center/NN
by/IN
the/DT
year/NN
2000/CD
./.
Analysts/NNS
say/VBP
a/DT
sale/NN
of/IN
Rockefeller/NNP
Group/NNP
shares/NNS
should/MD
not/RB
affect/VB
the/DT
trust/NN
's/POS
value/NN
./.
If/IN
the/DT
trust/NN
exercises/VBZ
its/PRP$
option/NN
as/IN
expected/VBN
,/,
Mitsubishi/NNS
will/MD
gain/VB
only/RB
a/DT
minority/NN
stake/NN
in/IN
the/DT
most/RBS
prestigious/JJ
section/NN
of/IN
the/DT
center/NN
,/,
which/WDT
was/VBD
built/VBN
during/IN
the/DT
Great/NNP
Depression/NNP
./.
Among/IN
the/DT
Rockefeller/NNP
Group/NNP
holdings/NNS
not/RB
encumbered/VBN
by/IN
the/DT
trust/NN
are/VBP
the/DT
Time/NNP
&/CC
Life/NNP
building/NN
,/,
a/DT
majority/NN
stake/NN
in/IN
the/DT
McGraw-Hill/NNP
building/NN
,/,
a/DT
prime/JJ
development/NN
site/NN
on/IN
the/DT
Manhattan/NNP
's/POS
West/NNP
Side/NNP
and/CC
certain/JJ
development/NN
rights/NNS
./.
Sources/NNS
familiar/JJ
with/IN
the/DT
transaction/NN
say/VBP
officials/NNS
at/IN
some/DT
Rockefeller/NNP
units/NNS
are/VBP
unhappy/JJ
with/IN
the/DT
deal/NN
./.
Managers/NNP
of/IN
Rockefeller/NNP
's/POS
Cushman/NNP
&/CC
Wakefield/NNP
Inc./NNP
,/,
a/DT
national/JJ
real/JJ
estate/NN
brokerage/NN
,/,
have/VBP
reportedly/RB
structured/VBN
a/DT
company/NN
buy-out/NN
plan/NN
which/WDT
was/VBD
rejected/VBN
by/IN
its/PRP$
parent/NN
./.
Cushman/NNP
President/NNP
Arthur/NNP
J./NNP
Mirante/NNP
II/NNP
had/VBD
no/DT
comment/NN
on/IN
reports/NNS
of/IN
the/DT
buy-out/NN
effort/NN
or/CC
the/DT
Mitsubishi/NNP
acquisition/NN
./.
But/CC
the/DT
sources/NNS
say/VBP
Rockefeller/NNP
was/VBD
seeking/VBG
at/IN
least/JJS
$/$
200/CD
million/CD
for/IN
the/DT
real/JJ
estate/NN
services/NNS
firm/NN
,/,
a/DT
price/NN
that/WDT
would/MD
make/VB
a/DT
buy-out/NN
impractical/JJ
for/IN
the/DT
managers/NNS
./.
Cushman/NNP
's/POS
management/NN
is/VBZ
made/VBN
up/RP
of/IN
top/JJ
brokers/NNS
who/WP
are/VBP
considered/VBN
the/DT
firm/NN
's/POS
major/JJ
asset/NN
and/CC
whose/WP$
cooperation/NN
is/VBZ
regarded/VBN
as/IN
vital/JJ
to/TO
its/PRP$
success/NN
./.
Sources/NNS
estimate/VBP
Cushman/NNP
will/MD
have/VB
1989/CD
revenue/NN
of/IN
more/JJR
than/IN
$/$
275/CD
million/CD
./.
Rockefeller/NNP
Group/NNP
said/VBD
in/IN
September/NNP
it/PRP
would/MD
seek/VB
investors/NNS
to/TO
purchase/VB
as/RB
much/JJ
as/IN
80/CD
%/NN
of/IN
the/DT
firm/NN
,/,
a/DT
holding/VBG
company/NN
for/IN
Rockefeller/NNP
family/NN
interests/NNS
./.
Mitsubishi/NNP
has/VBZ
agreed/VBN
to/TO
acquire/VB
627,000/CD
shares/NNS
of/IN
Rockefeller/NNP
common/JJ
stock/NN
held/VBN
by/IN
trusts/NNS
established/VBN
by/IN
John/NNP
D./NNP
Rockefeller/NNP
in/IN
1934/CD
./.
When/WRB
people/NNS
``/``
understand/VBP
the/DT
resources/NNS
of/IN
Mitsubishi/NNP
they/PRP
'll/MD
see/VB
it/PRP
represents/VBZ
an/DT
exciting/JJ
future/NN
for/IN
the/DT
company/NN
,/,
''/''
said/VBD
Richard/NNP
A./NN
Voell/NNP
,/,
president/NN
of/IN
Rockefeller/NNP
Group/NNP
./.
William/NNP
G./NNP
Bowen/NNP
,/,
chairman/NN
of/IN
the/DT
committee/NN
that/WDT
oversees/VBZ
the/DT
family/NN
trusts/NNS
,/,
said/VBD
the/DT
deal/NN
meets/VBZ
the/DT
committee/NN
's/POS
objective/NN
of/IN
diversification/NN
of/IN
the/DT
family/NN
's/POS
assets/NNS
./.
David/NNP
Rockefeller/NNP
,/,
chairman/NN
of/IN
Rockefeller/NNP
Group/NNP
,/,
said/VBD
the/DT
company/NN
talked/VBD
with/IN
many/JJ
potential/JJ
investors/NNS
in/IN
Japan/NNP
,/,
the/DT
United/NNP
States/NNPS
and/CC
Europe/NNP
./.
But/CC
Mr./NNP
Rockefeller/NNP
said/VBD
he/PRP
has/VBZ
a/DT
20-year/JJ
association/NN
with/IN
Mitsubishi/NNP
from/IN
his/PRP$
days/NNS
as/IN
chairman/NN
of/IN
Chase/NNP
Manhattan/NNP
Corp/NNP
./.
Koyata/NNP
Hosokawa/NNP
,/,
executive/JJ
vice/NN
president/NN
of/IN
Mitsubishi/NNS
,/,
said/VBD
the/DT
company/NN
has/VBZ
spent/VBN
years/NNS
studying/VBG
the/DT
U.S./NNP
real/JJ
estate/NN
market/NN
./.
Sources/NNS
say/VBP
Rockefeller/NNP
Group/NNP
had/VBD
distributed/VBN
a/DT
``/``
fact/NN
book/NN
''/''
to/TO
international/JJ
real/JJ
estate/NN
investors/NNS
including/VBG
Mitsui/NNP
Real/NNP
Estate/NNP
Development/NNP
Co./NNP
of/IN
Japan/NNP
and/CC
Canada/NNP
's/POS
Olympia/NNP
&/CC
York/NNP
Developments/NNP
Ltd/NNP
./.
Before/IN
yesterday/NN
's/POS
announcement/NN
,/,
many/JJ
observers/NNS
wondered/VBD
whether/IN
a/DT
Japanese/JJ
buyer/NN
would/MD
be/VB
willing/JJ
to/TO
acquire/VB
a/DT
piece/NN
of/IN
such/JJ
high-profile/JJ
American/JJ
real/JJ
estate/NN
./.
It/PRP
is/VBZ
understood/VBN
that/IN
Japanese/JJ
buyers/NNS
shied/VBD
from/IN
bidding/VBG
on/IN
the/DT
110-story/JJ
Sears/NNP
Tower/NNP
in/IN
Chicago/NNP
because/IN
purchasing/VBG
the/DT
world/NN
's/POS
tallest/JJS
building/NN
might/MD
stir/VB
anti-Japanese/JJ
sentiments/NNS
in/IN
the/DT
U.S/NNP
./.
Rockefeller/NNP
Group/NNP
's/POS
management/NN
unit/NN
will/MD
continue/VB
to/TO
manage/VB
Rockefeller/NNP
Center/NNP
,/,
a/DT
stipulation/NN
insisted/VBD
upon/IN
by/IN
Rockefeller/NNP
Group/NNP
./.
Moody/NNP
's/POS
Investors/NNPS
Service/NNP
Inc./NNP
said/VBD
it/PRP
downgraded/VBD
about/RB
$/$
970/CD
million/CD
of/IN
senior/JJ
debt/NN
of/IN
Arkla/NNP
Inc./NNP
in/IN
response/NN
to/TO
the/DT
company/NN
's/VBZ
increased/JJ
financial/JJ
leverage/NN
,/,
related/VBN
primarily/RB
to/TO
restructuring/NN
plans/NNS
that/WDT
include/VBP
taking/VBG
a/DT
$/$
189/CD
million/CD
charge/NN
./.
Moody/NNP
's/POS
contends/VBZ
the/DT
natural/JJ
gas/NN
company/NN
's/POS
debt/NN
has/VBZ
risen/VBN
principally/RB
because/IN
of/IN
large/JJ
prepayments/NNS
to/TO
producers/NNS
to/TO
settle/VB
take-or-pay/JJ
claims/NNS
,/,
and/CC
due/RB
to/TO
aggressive/JJ
efforts/NNS
to/TO
increase/VB
market/NN
opportunities/NNS
through/IN
acquisitions/NNS
,/,
which/WDT
were/VBD
partially/RB
financed/VBN
by/IN
debt/NN
./.
Arkla/NN
is/VBZ
based/VBN
in/IN
Shreveport/NNP
,/,
La/NNP
./.
Downgraded/VBN
by/IN
the/DT
ratings/NNS
concern/NN
are/VBP
Arkla/NNP
's/POS
first/JJ
mortgage/NN
bonds/NNS
to/TO
single-A-3/JJ
from/IN
single-A-2/JJ
;/:
notes/NNS
to/TO
single-A-3/JJ
from/IN
single-A-2/JJ
;/:
debentures/NNS
to/TO
single-A-3/JJ
from/IN
single-A-2/JJ
;/:
shelf/NN
registration/NN
to/TO
a/DT
preliminary/JJ
rating/NN
of/IN
single-A-3/JJ
from/IN
a/DT
preliminary/JJ
rating/NN
of/IN
single-A-2/JJ
;/:
convertible/JJ
preferred/JJ
stock/NN
to/TO
Baa-1/JJ
from/IN
single-A-3/JJ
,/,
and/CC
the/DT
concern/NN
's/POS
rating/NN
for/IN
commercial/JJ
paper/NN
to/TO
Prime-2/JJ
from/IN
Prime-1/JJ
./.
Also/RB
downgraded/VBN
were/VBD
the/DT
company/NN
's/POS
Entex/NNP
Inc./NNP
unit/NN
's/POS
first/JJ
mortgage/NN
bonds/NNS
to/TO
single-A-3/JJ
from/IN
single-A-2/JJ
and/CC
debentures/NNS
to/TO
single-A-3/JJ
from/IN
single-A-2/JJ
./.
Arkla/NNP
acquired/VBD
Entex/NNP
in/IN
1988/CD
./.
Moody/NNP
's/POS
said/VBD
the/DT
rating/NN
action/NN
takes/VBZ
into/IN
account/NN
Arkla/NNP
's/POS
plan/NN
for/IN
an/DT
initial/JJ
public/JJ
offering/NN
of/IN
as/RB
much/JJ
as/IN
18/CD
%/NN
of/IN
the/DT
common/JJ
stock/NN
of/IN
its/PRP$
oil/NN
and/CC
gas/NN
exploration/NN
and/CC
development/NN
subsidiary/NN
,/,
proceeds/NNS
of/IN
which/WDT
will/MD
be/VB
used/VBN
to/TO
repay/VB
debt/NN
./.
Spanish/JJ
stock/NN
exchange/NN
regulators/NNS
plan/VBP
to/TO
hand/VB
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
the/DT
maximum/JJ
fine/NN
for/IN
irregularities/NNS
by/IN
its/PRP$
former/JJ
Madrid/NNP
unit/NN
in/IN
connection/NN
with/IN
Spanish/JJ
oil/NN
company/NN
Repsol/NNP
S.A./NNP
's/POS
stock/NN
issue/NN
in/IN
May/NNP
,/,
a/DT
senior/JJ
government/NN
official/NN
said/VBD
./.
Pedro/NNP
Perez/NNP
,/,
secretary/NN
of/IN
state/NN
for/IN
economic/JJ
affairs/NNS
,/,
said/VBD
the/DT
National/NNP
Stock/NNP
Exchange/NNP
Commission/NNP
intends/VBZ
to/TO
propose/VB
the/DT
maximum/JJ
penalty/NN
because/IN
of/IN
what/WP
he/PRP
called/VBD
the/DT
``/``
decidedly/RB
fraudulent/JJ
''/''
nature/NN
of/IN
the/DT
operations/NNS
under/IN
scrutiny/NN
./.
Under/IN
Spanish/JJ
stock/NN
market/NN
rules/NNS
,/,
the/DT
commission/NN
can/MD
call/VB
for/IN
a/DT
fine/NN
equivalent/JJ
to/TO
as/RB
much/JJ
as/IN
five/CD
times/NNS
the/DT
profits/NNS
generated/VBN
./.
Based/VBN
on/IN
what/WP
Drexel/NN
has/VBZ
said/VBD
its/PRP$
office/NN
made/VBN
on/IN
the/DT
transaction/NN
,/,
the/DT
maximum/JJ
fine/NN
would/MD
be/VB
72.5/CD
million/CD
pesatas/NNS
$/$
621,624/CD
But/CC
Carlos/NNP
Croissier/NNP
,/,
chairman/NN
of/IN
the/DT
commission/NN
,/,
yesterday/NN
said/VBD
that/DT
figure/NN
is/VBZ
incorrect/JJ
./.
He/PRP
declined/VBD
to/TO
say/VB
if/IN
the/DT
actual/JJ
fine/NN
will/MD
be/VB
higher/JJR
or/CC
lower/JJR
./.
He/PRP
said/VBD
he/PRP
has/VBZ
n't/RB
submitted/VBN
a/DT
formal/JJ
proposal/NN
./.
Under/IN
Spanish/JJ
law/NN
,/,
the/DT
fine/NN
must/MD
be/VB
proposed/VBN
by/IN
the/DT
commission/NN
and/CC
approved/VBN
by/IN
the/DT
Economy/NNP
Ministry/NNP
./.
Drexel/NNP
closed/VBD
its/PRP$
Spanish/JJ
unit/NN
,/,
DBL/NNP
Capital/NNP
Markets/NNP
Espana/NNP
S.A./NNP
,/,
in/IN
July/NNP
after/IN
confirming/VBG
that/IN
it/PRP
had/VBD
used/VBN
the/DT
names/NNS
of/IN
400/CD
individuals/NNS
to/TO
buy/VB
Repsol/NNP
shares/NNS
,/,
which/WDT
it/PRP
then/RB
resold/VB
to/TO
institutional/JJ
clients/NNS
,/,
circumventing/VBG
restrictions/NNS
designed/VBN
to/TO
make/VB
shares/NNS
available/JJ
to/TO
private/JJ
investors/NNS
./.
In/IN
New/NNP
York/NNP
,/,
a/DT
spokesman/NN
for/IN
Drexel/NNP
said/VBD
,/,
``/``
There/EX
is/VBZ
nothing/NN
to/TO
comment/VB
on/IN
;/:
nothing/NN
has/VBZ
been/VBN
settled/VBN
yet/RB
./.
''/''
ALLWASTE/NNP
Inc./NNP
declared/VBD
a/DT
2-for-1/JJ
stock/NN
split/NN
,/,
payable/JJ
Dec./NNP
1/CD
,/,
to/TO
stock/NN
of/IN
record/NN
Nov./NNP
15/CD
./.
The/DT
Stafford/NNP
,/,
Texas-based/JJ
company/NN
will/MD
issue/VB
one/CD
additional/JJ
share/NN
of/IN
common/JJ
stock/NN
for/IN
each/DT
of/IN
the/DT
14.8/CD
million/CD
shares/NNS
outstanding/JJ
./.
The/DT
stock/NN
market/NN
stumbled/VBD
after/IN
getting/VBG
off/IN
to/TO
a/DT
strong/JJ
start/NN
and/CC
closed/VBD
mixed/JJ
in/IN
lackluster/JJ
trading/NN
./.
Bargain-hunting/NN
and/CC
futures-related/JJ
program/NN
buying/NN
lifted/VBD
prices/NNS
at/IN
the/DT
outset/NN
,/,
but/CC
the/DT
rise/NN
proved/VBD
short-lived/JJ
as/IN
concerns/NNS
about/IN
this/DT
week/NN
's/POS
economic/JJ
reports/NNS
and/CC
the/DT
potential/NN
for/IN
further/JJ
losses/NNS
in/IN
stocks/NNS
weighed/VBD
on/IN
investors/NNS
./.
Selected/JJ
blue-chip/JJ
issues/NNS
attracted/VBD
buying/NN
interest/NN
,/,
however/RB
,/,
and/CC
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
stayed/VBD
in/IN
positive/JJ
territory/NN
throughout/IN
the/DT
entire/JJ
session/NN
./.
The/DT
average/NN
,/,
which/WDT
peaked/VBD
with/IN
a/DT
gain/NN
of/IN
more/JJR
than/IN
23/CD
points/NNS
,/,
added/VBD
6.76/CD
to/TO
2603.48/CD
./.
Broader/JJR
market/NN
averages/NNS
were/VBD
little/RB
changed/VBN
./.
Standard/NNP
&/CC
Poor/NNP
's/POS
500-Stock/NNP
Index/NNP
went/VBD
up/RB
0.01/CD
to/TO
335.07/CD
,/,
the/DT
Dow/NNP
Jones/NNP
Equity/NNP
Market/NNP
Index/NNP
dipped/VBD
0.01/CD
to/TO
314.09/CD
and/CC
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
Composite/NNP
Index/NNP
eased/VBD
0.01/CD
to/TO
185.59/CD
./.
Activity/NN
was/VBD
fairly/RB
brisk/JJ
at/IN
the/DT
opening/NN
as/IN
hopes/NNS
for/IN
a/DT
recovery/NN
from/IN
last/JJ
week/NN
's/POS
string/NN
of/IN
five/CD
consecutive/JJ
losses/NNS
in/IN
the/DT
industrial/JJ
average/NN
led/VBD
some/DT
investors/NNS
into/IN
the/DT
market/NN
./.
Program/NN
buying/NN
related/VBN
to/TO
stock-index/JJ
arbitrage/NN
then/RB
surfaced/VBD
shortly/RB
after/IN
10/CD
a.m./NN
EST/NNP
and/CC
carried/VBD
prices/NNS
to/TO
their/PRP$
session/NN
highs/NNS
./.
But/CC
the/DT
pace/NN
slowed/VBD
quickly/RB
following/VBG
the/DT
round/NN
of/IN
arbitrage-related/JJ
buying/NN
,/,
involving/VBG
the/DT
sale/NN
of/IN
index/NN
futures/NNS
contracts/NNS
and/CC
the/DT
purchase/NN
of/IN
stocks/NNS
,/,
and/CC
stayed/VBD
sluggish/JJ
through/IN
the/DT
rest/NN
of/IN
the/DT
session/NN
as/IN
prices/NNS
drifted/VBD
./.
``/``
People/NNS
are/VBP
sitting/VBG
on/IN
their/PRP$
hands/NNS
,/,
''/''
said/VBD
Bill/NNP
Langevin/NNP
,/,
manager/NN
of/IN
institutional/JJ
trading/NN
at/IN
Morgan/NNP
Keegan/NNP
&/CC
Co./NNP
,/,
Memphis/NNP
,/,
Tenn/NNP
./.
Just/RB
126,630,000/CD
shares/NNS
changed/VBD
hands/NNS
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
compared/VBN
with/IN
170.3/CD
million/CD
Friday/NNP
and/CC
135.9/CD
million/CD
last/JJ
Monday/NNP
./.
Declining/VBG
stocks/NNS
led/VBD
advancers/NNS
on/IN
the/DT
Big/NNP
Board/NNP
,/,
774/CD
to/TO
684/CD
./.
Traders/NNS
attributed/VBD
the/DT
lackluster/JJ
activity/NN
in/IN
part/NN
to/TO
anticipation/NN
of/IN
the/DT
first/JJ
pieces/NNS
of/IN
economic/JJ
data/NNS
for/IN
October/NNP
:/:
a/DT
monthly/JJ
survey/NN
of/IN
corporate/JJ
purchasing/NN
managers/NNS
,/,
due/JJ
tomorrow/NN
,/,
and/CC
the/DT
employment/NN
report/NN
,/,
set/VBN
for/IN
Friday/NNP
./.
Also/RB
,/,
a/DT
number/NN
of/IN
analysts/NNS
believe/VBP
stocks/NNS
could/MD
fall/VB
to/TO
the/DT
vicinity/NN
of/IN
their/PRP$
lows/NNS
during/IN
the/DT
market/NN
's/POS
mid-October/NNP
sell-off/NN
before/IN
posting/VBG
any/DT
sustainable/JJ
gains/NNS
./.
The/DT
industrial/JJ
average/NN
hit/VBD
bottom/NN
near/IN
the/DT
2500/CD
level/NN
on/IN
both/DT
Oct./NNP
13/CD
and/CC
Oct./NNP
16/CD
./.
The/DT
market/NN
has/VBZ
begun/VBN
a/DT
process/NN
of/IN
``/``
trying/VBG
to/TO
find/VB
a/DT
floor/NN
''/''
after/IN
its/PRP$
fall/NN
,/,
said/VBD
William/NNP
M./NNP
LeFevre/NNP
,/,
a/DT
market/NN
strategist/NN
at/IN
Advest/NNP
Inc./NNP
,/,
Hartford/NNP
,/,
Conn/NNP
./.
He/PRP
added/VBD
that/IN
the/DT
floor/NN
could/MD
prove/VB
to/TO
be/VB
well/RB
above/IN
the/DT
recent/JJ
price/NN
lows/NNS
,/,
depending/VBG
on/IN
whether/IN
the/DT
economic/JJ
data/NNS
ease/VBP
concerns/NNS
about/IN
slower/JJR
growth/NN
./.
Chevron/NNP
gained/VBD
7\/8/CD
to/TO
67/CD
1\/4/CD
in/IN
Big/NNP
Board/NNP
composite/JJ
trading/NN
of/IN
2.1/CD
million/CD
shares/NNS
amid/IN
continued/JJ
speculation/NN
that/IN
Pennzoil/NNP
is/VBZ
building/VBG
a/DT
stake/NN
in/IN
the/DT
company/NN
./.
USA/NNP
Today/NNP
reported/VBD
that/IN
an/DT
unknown/JJ
party/NN
--/:
possibly/RB
Pennzoil/NNP
--/:
acting/VBG
on/IN
its/PRP$
own/JJ
or/CC
with/IN
a/DT
partner/NN
holds/VBZ
between/IN
3.5/CD
%/NN
and/CC
4.7/CD
%/NN
of/IN
the/DT
company/NN
's/POS
common/JJ
shares/NNS
./.
Other/JJ
strong/JJ
performers/NNS
among/IN
blue-chip/JJ
issues/NNS
included/VBD
Procter/NNP
&/CC
Gamble/NNP
,/,
which/WDT
went/VBD
up/RB
2/CD
3\/8/CD
to/TO
127/CD
3\/4/CD
;/:
Aluminum/NNP
Co./NNP
of/IN
America/NNP
,/,
up/IN
1/CD
to/TO
69/CD
1\/4/CD
,/,
and/CC
Primerica/NNP
,/,
up/RB
3\/4/CD
to/TO
28/CD
1\/4/CD
./.
Also/RB
,/,
Philip/NNP
Morris/NNP
gained/VBD
3\/4/CD
to/TO
42/CD
1\/8/CD
on/IN
1.7/CD
million/CD
shares/NNS
./.
UAL/NNP
Corp./NNP
moved/VBD
up/RB
4/CD
to/TO
175/CD
on/IN
reports/NNS
that/IN
Los/NNP
Angeles/NNP
investor/NN
Marvin/NNP
Davis/NNP
has/VBZ
asked/VBN
United/NNP
Airlines/NNP
unions/NNS
if/IN
they/PRP
're/VBP
interested/JJ
in/IN
cooperating/VBG
with/IN
him/PRP
in/IN
a/DT
new/JJ
bid/NN
for/IN
UAL/NNP
./.
But/CC
neither/CC
the/DT
pilots/NNS
nor/CC
the/DT
machinists/NNS
appear/VBP
interested/JJ
,/,
and/CC
Mr./NNP
Davis/NNP
is/VBZ
barred/VBN
from/IN
making/VBG
a/DT
new/JJ
bid/NN
under/IN
terms/NNS
of/IN
an/DT
agreement/NN
he/PRP
made/VBD
with/IN
UAL/NNP
in/IN
September/NNP
,/,
unless/IN
UAL/NNP
accepts/VBZ
an/DT
offer/NN
below/IN
$/$
300/CD
a/DT
share/NN
./.
fell/VBD
3\/8/CD
to/TO
99/CD
1\/2/CD
as/IN
1.2/CD
million/CD
shares/NNS
changed/VBD
hands/NNS
./.
Unisys/NNP
went/VBD
down/RB
1/CD
to/TO
15/CD
1\/4/CD
on/IN
1.3/CD
million/CD
shares/NNS
and/CC
Hewlett-Packard/NNP
skidded/VBD
2/CD
3\/8/CD
to/TO
47/CD
,/,
but/CC
Digital/NNP
Equipment/NNP
rose/VBD
1/CD
3\/8/CD
to/TO
90/CD
1\/2/CD
and/CC
Compaq/NNP
Computer/NNP
added/VBD
1/CD
to/TO
101/CD
5\/8/CD
./.
Texas/NNP
Instruments/NNP
,/,
which/WDT
re-entered/VBD
the/DT
personal/JJ
computer/NN
market/NN
by/IN
introducing/VBG
three/CD
portable/JJ
models/NNS
,/,
added/VBD
1\/2/CD
to/TO
31/CD
1\/8/CD
./.
One/CD
series/NN
of/IN
dividend-related/JJ
trades/NNS
accounted/VBD
for/IN
most/JJS
of/IN
the/DT
volume/NN
in/IN
Southern/NNP
Co./NNP
,/,
the/DT
Big/NNP
Board/NNP
's/POS
most/RBS
active/JJ
issue/NN
,/,
which/WDT
closed/VBD
down/RB
1\/8/CD
to/TO
27/CD
1\/4/CD
on/IN
5.2/CD
million/CD
shares/NNS
./.
The/DT
utility/NN
carries/VBZ
an/DT
8/CD
%/NN
dividend/NN
yield/NN
and/CC
goes/VBZ
ex-dividend/JJ
today/NN
./.
Crossland/NNP
Savings/NNPS
tumbled/VBD
1/CD
1\/2/CD
to/TO
3/CD
3\/4/CD
in/IN
the/DT
wake/NN
of/IN
its/PRP$
management/NN
's/POS
recommendation/NN
to/TO
suspend/VB
dividends/NNS
,/,
because/IN
of/IN
concerns/NNS
that/IN
it/PRP
may/MD
not/RB
meet/VB
capital/NN
requirements/NNS
under/IN
new/JJ
federal/JJ
regulations/NNS
./.
The/DT
proposed/JJ
criteria/NNS
would/MD
bar/VB
Crossland/NNP
from/IN
including/VBG
its/PRP$
$/$
380/CD
million/CD
of/IN
preferred/JJ
stock/NN
as/IN
so-called/JJ
``/``
core/JJ
capital/NN
./.
''/''
American/NNP
Savings/NNPS
Bank/NNP
,/,
which/WDT
could/MD
face/VB
a/DT
similar/JJ
problem/NN
with/IN
the/DT
new/JJ
capital/NN
criteria/NNS
,/,
dropped/VBD
7\/8/CD
to/TO
9/CD
5\/8/CD
./.
The/DT
company/NN
had/VBD
$/$
173.5/CD
million/CD
in/IN
preferred/JJ
stock/NN
outstanding/JJ
as/IN
of/IN
June/NNP
30/CD
./.
Meanwhile/RB
,/,
the/DT
savings-and-loan/JJ
sector/NN
fared/VBD
better/RBR
than/IN
any/DT
other/JJ
Dow/NNP
Jones/NNP
industry/NN
group/NN
./.
H.F./NNP
Ahmanson/NNP
rose/VBD
3\/8/CD
to/TO
19/CD
1\/8/CD
,/,
Great/NNP
Western/NNP
Financial/NNP
gained/VBD
5\/8/CD
to/TO
19/CD
3\/4/CD
,/,
Golden/NNP
West/NNP
Financial/NNP
added/VBD
1\/2/CD
to/TO
26/CD
3\/8/CD
and/CC
CalFed/NNP
went/VBD
up/RB
1\/2/CD
to/TO
23/CD
1\/4/CD
./.
Battle/NNP
Mountain/NNP
Gold/NNP
,/,
which/WDT
reported/VBD
that/IN
third-quarter/JJ
earnings/NNS
fell/VBD
85/CD
%/NN
from/IN
a/DT
year/NN
ago/RB
,/,
lost/VBD
5\/8/CD
to/TO
16/CD
1\/8/CD
./.
Other/JJ
precious-metals/NNS
stocks/NNS
finished/VBD
mixed/JJ
after/IN
rallying/VBG
late/RB
last/JJ
week/NN
;/:
Homestake/NNP
Mining/NNP
went/VBD
down/RB
1\/8/CD
to/TO
16/CD
3\/4/CD
,/,
Newmont/NNP
Gold/NNP
added/VBD
7\/8/CD
to/TO
41/CD
1\/4/CD
and/CC
ASA/NNP
Ltd./NNP
slid/VBD
1\/2/CD
to/TO
49/CD
1\/8/CD
./.
Paramount/NNP
Communications/NNP
dropped/VBD
1/CD
to/TO
54/CD
3\/4/CD
amid/IN
rumors/NNS
that/IN
the/DT
$/$
3.35/CD
billion/CD
sale/NN
of/IN
its/PRP$
Associates/NNP
Corp./NNP
unit/NN
to/TO
Ford/NNP
Motor/NNP
could/MD
be/VB
delayed/VBN
until/IN
mid-November/NNP
./.
The/DT
company/NN
said/VBD
the/DT
sale/NN
was/VBD
``/``
on/IN
track/NN
''/''
to/TO
close/VB
by/IN
today/NN
./.
Nashua/NNP
jumped/VBD
4/CD
1\/2/CD
to/TO
33/CD
1\/2/CD
despite/IN
taking/VBG
steps/NNS
to/TO
ward/VB
off/IN
Reiss/NNP
&/CC
Co./NNP
,/,
a/DT
Dutch/JJ
company/NN
that/WDT
is/VBZ
seeking/VBG
U.S./NNP
antitrust/JJ
clearance/NN
to/TO
acquire/VB
as/RB
much/JJ
as/IN
25/CD
%/NN
of/IN
its/PRP$
common/JJ
stock/NN
./.
Nashua/NNP
expanded/VBD
a/DT
stock-repurchase/JJ
program/NN
by/IN
one/CD
million/CD
common/JJ
shares/NNS
--/:
about/RB
10.6/CD
%/NN
of/IN
its/PRP$
shares/NNS
outstanding/JJ
--/:
and/CC
toughened/VBD
a/DT
takeover/NN
defense/NN
./.
Unum/NNP
gained/VBD
2/CD
to/TO
43/CD
./.
The/DT
company/NN
reported/VBD
that/IN
third-quarter/JJ
earnings/NNS
were/VBD
34/CD
%/NN
higher/JJR
than/IN
a/DT
year/NN
earlier/RBR
,/,
a/DT
sharper/JJR
rise/NN
than/IN
analysts/NNS
had/VBD
expected/VBN
./.
Telecom/NNP
USA/NNP
skidded/VBD
4/CD
to/TO
28/CD
1\/2/CD
./.
Its/PRP$
earnings/NNS
from/IN
operations/NNS
for/IN
the/DT
third/JJ
quarter/NN
were/VBD
above/IN
the/DT
year-ago/JJ
level/NN
,/,
but/CC
fell/VBD
short/RB
of/IN
analysts/NNS
'/POS
forecasts/NNS
./.
The/DT
American/NNP
Stock/NNP
Exchange/NNP
Market/NNP
Value/NNP
Index/NNP
fell/VBD
1.14/CD
to/TO
368.87/CD
./.
Volume/NN
totaled/VBD
10,100,000/CD
shares/NNS
./.
First/NNP
Federal/NNP
Bancorp/NNP
lost/VBD
1\/2/CD
to/TO
6/CD
3\/8/CD
./.
James/NNP
Clarkson/NNP
retired/VBD
as/IN
chairman/NN
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
the/DT
Pontiac/NNP
,/,
Mich.-based/JJ
bank/NN
holding/VBG
company/NN
,/,
which/WDT
said/VBD
it/PRP
is/VBZ
reviewing/VBG
certain/JJ
unspecified/JJ
actions/NNS
Mr./NNP
Clarkson/NNP
took/VBD
while/IN
in/IN
office/NN
./.
Philadelphia/NNP
Museum/NNP
of/IN
Art/NNP
:/:
``/``
Perpetual/JJ
Motif/NN
:/:
The/DT
Art/NN
of/IN
Man/NNP
Ray/NNP
''/''
--/:
More/JJR
than/IN
250/CD
paintings/NNS
,/,
collages/NNS
,/,
drawings/NNS
,/,
photographs/NNS
,/,
objects/NNS
and/CC
films/NNS
commemorate/VBP
the/DT
centennial/NN
of/IN
the/DT
artist/NN
's/POS
birth/NN
in/IN
Philadelphia/NNP
./.
Nearly/RB
one-third/NN
of/IN
the/DT
works/NNS
by/IN
this/DT
pioneer/NN
of/IN
dada/NN
and/CC
surrealism/NN
are/VBP
lent/VBN
by/IN
French/JJ
collectors/NNS
and/CC
museums/NNS
the/DT
artist/NN
spent/VBD
most/JJS
of/IN
his/PRP$
life/NN
in/IN
Paris/NNP
Many/JJ
other/JJ
objects/NNS
have/VBP
been/VBN
lent/VBN
for/IN
the/DT
first/JJ
time/NN
by/IN
his/PRP$
widow/NN
,/,
Juliet/NNP
Man/NNP
Ray/NNP
./.
Parkway/NNP
at/IN
26th/NNP
Street/NNP
,/,
through/IN
Jan./NNP
7/CD
./.
Carnegie/NNP
Museum/NNP
of/IN
Art/NNP
,/,
Pittsburgh/NNP
:/:
``/``
Impressionism/NN
:/:
Selections/NNS
From/IN
Five/CD
American/JJ
Museums/NNS
''/''
--/:
Eighty-five/CD
paintings/NNS
,/,
pastels/NNS
and/CC
sculptures/NNS
by/IN
artists/NNS
including/VBG
Cezanne/NNP
,/,
van/NN
Gogh/NNP
,/,
Monet/NNP
,/,
Renoir/NNP
,/,
Sisley/NNP
and/CC
Cassatt/NNP
./.
The/DT
works/NNS
are/VBP
drawn/VBN
from/IN
the/DT
permanent/JJ
collections/NNS
of/IN
the/DT
Carnegie/NNP
4400/CD
Forbes/NNP
Ave./NNP
,/,
on/IN
view/NN
Nov./NNP
4-Dec./NNP

31/CD
the/DT
Minneapolis/NNP
Institute/NNP
of/IN
Arts/NNP
2400/CD
Third/NNP
Avenue/NNP
South/NNP
,/,
Jan./NNP
27-March/NNP

25/CD
the/DT
Nelson-Atkins/NNP
Museum/NNP
of/IN
Art/NNP
4525/CD
Oak/NNP
St./NNP
,/,
Kansas/NNP
City/NNP
,/,
Mo./NNP
,/,
April/NNP
21-June/NNP

17/CD
the/DT
Saint/NNP
Louis/NNP
Art/NNP
Museum/NNP
Forest/NNP
Park/NNP
,/,
July/NNP
14-Sept./NNP

9/CD
the/DT
Toledo/NNP
Museum/NNP
of/IN
Art/NNP
2445/CD
Monroe/NNP
St./NNP
,/,
Toledo/NNP
,/,
Ohio/NNP
,/,
Sept./NNP
30-Nov./NNP

25/CD
,/,
1990/CD
Indianapolis/NNP
Museum/NNP
of/IN
Art/NNP
:/:
``/``
Latin/JJ
and/CC
Haitian/JJ
Folk/NN
Art/NN
''/''
--/:
An/DT
assortment/NN
of/IN
santos/FW
hand-carved/JJ
devotional/JJ
images/NNS
tin/NN
votive/JJ
objects/NNS
colorful/JJ
voodoo/NN
banners/NNS
satin/NN
,/,
sequins/NNS
and/CC
beads/NNS
Latin/NNP
America/NNP
and/CC
Haiti/NNP
by/IN
importer/NN
Alden/NNP
Smith/NNP
./.
1200/CD
West/NNP
38th/NNP
St./NNP
,/,
Nov./NNP
1-Dec/NNP
./.
3/CD
./.
A.I.R./NNP
Gallery/NNP
,/,
New/NNP
York/NNP
:/:
Carved/JJ
wood/NN
bathed/VBN
in/IN
glowing/JJ
colors/NNS
and/CC
gold/NN
leaf/NN
,/,
Nancy/NNP
Azara/NNP
's/POS
sculptures/NNS
evoke/VBP
faraway/JJ
places/NNS
,/,
forgotten/JJ
rituals/NNS
./.
Her/PRP$
current/JJ
show/NN
gathers/VBZ
two/CD
dozen/NN
of/IN
these/DT
shamanistic/JJ
pieces/NNS
,/,
from/IN
tiny/JJ
to/TO
towering/JJ
./.
63/CD
Crosby/NNP
St/NNP
./.
corner/NN
of/IN
Spring/NNP
Through/IN
Nov./NNP
18/CD
./.
``/``
Voices/NNS
From/IN
a/DT
Distant/JJ
Shoreline/NN
''/''
:/:
Three/CD
West/JJ
Coast-based/JJ
choreographers/NNS
--/:
Anita/NNP
Addison/NNP
,/,
Esther/NNP
Aviva/NNP
and/CC
Joannie/NNP
Anderson/NNP
--/:
come/VBP
East/RB
with/IN
an/DT
eclectic/JJ
evening/NN
of/IN
dance/NN
./.
Pieces/NNS
scheduled/VBN
include/VBP
Ms./NNP
Anderson/NNP
's/POS
``/``
Ragged/JJ
Claws/NNS
,/,
''/''
a/DT
comic/JJ
look/NN
at/IN
T.S./NNP
Eliot/NNP
's/POS
``/``
The/DT
Love/NN
Song/NN
of/IN
J./NNP
Alfred/NNP
Prufrock/NNP
''/''
;/:
three/CD
excerpts/NNS
from/IN
Ms./NNP
Aviva/NNP
's/POS
``/``
Amor/FW
Insurrecto/FW
,/,
''/''
featuring/VBG
the/DT
work/NN
of/IN
contemporary/JJ
Nicaraguan/JJ
poet/NN
Gioconda/NNP
Belli/NNP
;/:
and/CC
the/DT
premiere/NN
of/IN
a/DT
structured/JJ
group/NN
improvisation/NN
by/IN
Ms./NNP
Addison/NNP
and/CC
company/NN
./.
Mulberry/NNP
Street/NNP
Theatre/NNP
,/,
70/CD
Mulberry/NNP
St./NNP
,/,
New/NNP
York/NNP
./.
Nov./NNP
2-4/CD
./.
212/CD
349-0126/CD
./.
David/NNP
Gordon\/Pick/NNP
Up/NNP
Company/NNP
:/:
For/IN
2/CD
1\/2/CD
years/NNS
Mr./NNP
Gordon/NNP
has/VBZ
been/VBN
weaving/VBG
regionally/RB
inspired/VBN
words/NNS
,/,
music/NN
and/CC
movement/NN
into/IN
a/DT
tapestry/NN
of/IN
Americana/NN
,/,
``/``
United/NNP
States/NNPS
./.
''/''
Now/RB
the/DT
completed/JJ
work/NN
,/,
five/CD
self-contained/JJ
sections/NNS
stretching/VBG
over/IN
two/CD
evenings/NNS
,/,
can/MD
be/VB
seen/VBN
--/:
at/IN
the/DT
State/NNP
University/NNP
of/IN
New/NNP
York/NNP
at/IN
Purchase/NNP
Theatre/NNP
B/NNP
,/,
914-251-6200/CD
Nov./NNP
3-4/CD
./.
Those/DT
who/WP
prefer/VBP
their/PRP$
American/JJ
pie/NN
in/IN
smaller/JJR
portions/NNS
can/MD
catch/VB
a/DT
program/NN
consisting/VBG
of/IN
just/RB
the/DT
two/CD
newest/JJS
segments/NNS
:/:
Philadelphia/NNP
Zellerbach/NNP
Theatre/NNP
,/,
Annenberg/NNP
Center/NNP
,/,
215-898-6791/CD
Nov./NNP
13/CD
;/:
Lawrence/NNP
,/,
Kan/NNP
./.
Crafton-Preyer/NNP
Theatre/NNP
,/,
University/NNP
of/IN
Kansas/NNP
,/,
913-864-3982/CD
Nov./NNP
19/CD
;/:
St./NNP
Louis/NNP
Kiel/NNP
Opera/NNP
House/NNP
,/,
314-968-3770/CD
Dec./NN
1/CD
,/,
2/CD
./.
Metropolitan/NNP
Opera/NNP
:/:
June/NNP
Anderson/NNP
makes/VBZ
her/PRP$
long-awaited/JJ
debut/NN
as/IN
Gilda/NNP
in/IN
a/DT
new/JJ
production/NN
of/IN
Verdi/NNP
's/POS
``/``
Rigoletto/NNP
./.
''/''
Luciano/NNP
Pavarotti/NNP
,/,
partially/RB
recovered/VBN
from/IN
sciatica/NN
,/,
sings/VBZ
the/DT
fun-loving/JJ
duke/NN
,/,
leaving/VBG
the/DT
jester/NN
's/POS
cap/NN
to/TO
Leo/NNP
Nucci/NNP
,/,
as/IN
the/DT
hump-backed/JJ
fool/NN
./.
Lincoln/NNP
Center/NNP
,/,
65th/NNP
and/CC
Broadway/NNP
,/,
New/NNP
York/NNP
./.
Nov./NNP
3/CD
,/,
7/CD
,/,
11/CD
,/,
15/CD
,/,
18/CD
,/,
22/CD
,/,
25/CD
,/,
28/CD
./.
Dec./NNP
2/CD
./.
212/CD
Dallas/NNP
Opera/NNP
:/:
After/IN
more/RBR
than/IN
three/CD
decades/NNS
as/IN
the/DT
world/NN
's/POS
leading/JJ
coloratura/NN
soprano/NN
,/,
Dame/NNP
Joan/NNP
Sutherland/NNP
exits/VBZ
smilingly/RB
from/IN
the/DT
American/JJ
stage/NN
singing/VBG
the/DT
mysterious/JJ
countess/NN
in/IN
Lehar/NNP
's/POS
``/``
The/DT
Merry/JJ
Widow/NN
./.
''/''
Music/NNP
Hall/NNP
at/IN
Fair/NNP
Park/NNP
./.
Nov./NNP
2/CD
,/,
5/CD
,/,
8/CD
and/CC
11/CD
./.
214/CD
871-0090/CD
./.
Waverly/NNP
Consort/NNP
opens/VBZ
its/PRP$
25th/JJ
anniversary/NN
season/NN
with/IN
a/DT
fully/RB
staged/VBN
production/NN
of/IN
``/``
Il/FW
ritorno/FW
d'Ulisse/FW
in/FW
patria/FW
''/''
(/(
``/``
The/DT
Return/NN
of/IN
Ulysses/NNP
to/TO
His/PRP$
Homeland/NN
''/''
)/)
,/,
from/IN
the/DT
Monteverdi/NNP
trilogy/NN
that/WDT
also/RB
includes/VBZ
``/``
Orfeo/NNP
''/''
and/CC
``/``
L'incoronazione/FW
di/FW
Poppea/FW
./.
''/''
The/DT
cast/NN
of/IN
13/CD
singers/NNS
is/VBZ
lead/VBN
by/IN
Paul/NNP
Rowe/NNP
Ulisse/NNP
Laura/NNP
Pudwell/NNP
Penelope/NNP
Laurie/NNP
Monahan/NNP
Melanto/NNP
an/DT
original-instrument/JJ
Venetian/JJ
opera/NN
orchestra/NN
of/IN
20/CD
instrumentalists/NNS
./.
Kathryn/NNP
Bache/NNP
Miller/NNP
Theatre/NNP
,/,
Broadway/NNP
at/IN
116th/NNP
Street/NNP
,/,
New/NNP
York/NNP
./.
Nov./NNP
10/CD
,/,
11/CD
and/CC
12/CD
./.
212/CD
666-1260/CD
./.
I/PRP
would/MD
like/VB
to/TO
respond/VB
to/TO
Jude/NNP
Wanniski/NNP
's/POS
Oct./NNP
19/CD
editorial-page/NN
article/NN
,/,
``/``
Bradley/NNP
's/POS
Team/NN
Gave/VBD
the/DT
Market/NN
Its/PRP$
Drubbing/NN
,/,
''/''
as/IN
a/DT
nonpartisan/JJ
portfolio/NN
manager/NN
who/WP
is/VBZ
hardly/RB
amused/JJ
by/IN
this/DT
overzealous/JJ
emphasis/NN
on/IN
the/DT
Senate/NNP
's/VBZ
maneuvering/NN
on/IN
capital/NN
gains/NNS
as/IN
the/DT
prime/JJ
reason/NN
for/IN
the/DT
market/NN
's/POS
slide/NN
on/IN
Oct./NNP
13/CD
./.
In/IN
fact/NN
,/,
there/EX
are/VBP
several/JJ
reasons/NNS
for/IN
an/DT
end/NN
to/TO
the/DT
bull/NN
market/NN
and/CC
for/IN
this/DT
particular/JJ
190-point/JJ
slam-dunk/NN
./.
First/RB
,/,
addressing/VBG
the/DT
Oct./NNP
13/CD
market/NN
break/NN
,/,
this/DT
was/VBD
certainly/RB
more/JJR
of/IN
a/DT
technical/JJ
gyration/NN
and/CC
a/DT
local/JJ
jungle/NN
exercise/NN
,/,
than/IN
an/DT
investor/NN
reaction/NN
to/TO
the/DT
day/NN
's/POS
political/JJ
events/NNS
in/IN
Washington/NNP
./.
Look/VB
not/RB
to/TO
the/DT
managers/NNS
of/IN
taxable/JJ
investment/NN
funds/NNS
as/IN
the/DT
source/NN
of/IN
selling/NN
late/RB
that/DT
afternoon/NN
,/,
but/CC
rather/RB
to/TO
several/JJ
of/IN
the/DT
usual/JJ
suspects/NNS
``/``
investment/NN
''/''
banks/NNS
and/CC
institutions/NNS
imperfect/JJ
trading/NN
programs/NNS
that/WDT
accelerate/VBP
market/NN
deterioration/NN
,/,
once/RB
begun/VBN
./.
The/DT
catalyst/NN
for/IN
this/DT
decline/NN
was/VBD
,/,
indeed/RB
,/,
the/DT
breakdown/NN
of/IN
the/DT
United/NNP
Airlines/NNP
transaction/NN
and/CC
its/PRP$
resultant/JJ
pre-margin/JJ
call/NN
liquidation/NN
of/IN
various/JJ
holdings/NNS
by/IN
arbitragers/NNS
and/CC
other/JJ
traders/NNS
./.
I/PRP
can/MD
assure/VB
Mr./NNP
Wanniski/NNP
that/IN
the/DT
market/NN
is/VBZ
not/RB
as/RB
politically/RB
motivated/JJ
as/IN
he/PRP
is/VBZ
./.
With/IN
regard/NN
to/TO
the/DT
bull/NN
market/NN
's/POS
sad/JJ
demise/NN
,/,
this/DT
can/MD
be/VB
attributed/VBN
to/TO
several/JJ
factors/NNS
:/:
1/LS
./.
Overextension/NN
of/IN
credit/NN
./.
The/DT
realization/NN
that/IN
interest/NN
rates/NNS
will/MD
be/VB
firm/JJ
due/RB
to/TO
excessive/JJ
demand/NN
for/IN
credit/NN
on/IN
the/DT
part/NN
of/IN
the/DT
federal/JJ
government/NN
off-balance/JJ
sheet/NN
requirements/NNS
leveraged/JJ
buyout/NN
related/JJ
transactions/NNS
./.
The/DT
latter/JJ
credit/NN
demands/NNS
no/RB
longer/RBR
supported/VBN
to/TO
the/DT
same/JJ
degree/NN
by/IN
the/DT
market/NN
suppliers/NNS
,/,
Michael/NNP
Milken/NNP
and/CC
the/DT
S&Ls/NNS
,/,
being/VBG
noticeably/RB
absent/JJ
2/LS
./.
Perception/NN
of/IN
future/JJ
deterioration/NN
of/IN
corporate/JJ
profits/NNS
./.
This/DT
was/VBD
exemplified/VBN
by/IN
IBM/NNP
's/POS
recent/JJ
announcements/NNS
./.
One/NN
can/MD
magnify/VB
this/DT
problem/NN
10/CD
times/NNS
for/IN
highly/RB
leveraged/JJ
companies/NNS
whose/WP$
revenues/NNS
are/VBP
slowing/VBG
and/CC
where/WRB
interest/NN
rates/NNS
are/VBP
no/RB
longer/RB
accommodative/JJ
,/,
in/IN
bifurcated/JJ
credit/NN
markets/NNS
./.
3/LS
./.
A/DT
dollar/NN
that/WDT
will/MD
slide/VB
into/IN
year/NN
end/NN
--/:
due/RB
to/TO
international/JJ
interest-rate/NN
differentials/NNS
and/CC
the/DT
choreographed/JJ
trading/NN
techniques/NNS
of/IN
certain/JJ
oil/NN
importers/NNS
--/:
which/WDT
does/VBZ
not/RB
inspire/VB
foreign-investor/NN
interest/NN
./.
4/LS
./.
Inflation/NN
that/WDT
will/MD
be/VB
stable/JJ
for/IN
the/DT
time/NN
being/JJ
,/,
despite/IN
the/DT
rising/VBG
cost/NN
of/IN
imported/VBN|JJ
goods/NNS
,/,
because/IN
of/IN
rising/VBG
domestic/JJ
inventories/NNS
divestiture/NN
candidates/NNS
,/,
commodities/NNS
,/,
etc/FW
./.
requiring/VBG
liquidation/NN
./.
Modest/JJ
inflation\/deflation/NN
adding/VBG
to/TO
the/DT
attractiveness/NN
of/IN
bonds/NNS
./.
5/LS
./.
The/DT
honeymoon/NN
is/VBZ
over/RB
for/IN
poor/JJ
George/NNP
./.
In/IN
the/DT
past/JJ
week/NN
this/DT
was/VBD
highlighted/VBN
by/IN
continuing/VBG
fallout/NN
on/IN
Panama/NNP
and/CC
abortion/NN
rights/NNS
,/,
as/RB
well/RB
as/IN
capital/NN
gains/NNS
./.
Anticipated/JJ
poor/JJ
results/NNS
for/IN
Republicans/NNPS
at/IN
the/DT
polls/NNS
in/IN
November/NNP
have/VBP
added/VBN
to/TO
investor/NN
ennui/NN
./.
In/IN
sum/NN
,/,
there/EX
are/VBP
technical/JJ
,/,
economic/JJ
,/,
political/JJ
and/CC
psychological/JJ
reasons/NNS
for/IN
the/DT
market/NN
's/POS
recent/JJ
drubbing/NN
./.
Mr./NNP
Wanniski/NNP
can/MD
``/``
cheerfully/RB
inform/VB
''/''
Mr./NNP
Bradley/NNP
and/CC
the/DT
rest/NN
of/IN
us/PRP
of/IN
his/PRP$
notions/NNS
as/IN
to/TO
the/DT
party/NN
's/POS
end/NN
,/,
but/CC
his/PRP$
energy/NN
and/CC
intellect/NN
would/MD
be/VB
better/RBR
used/VBN
in/IN
focusing/VBG
on/IN
measures/NNS
that/WDT
will/MD
ensure/VB
our/PRP$
long-term/JJ
success/NN
as/IN
leaders/NNS
and/CC
capitalists/NNS
./.
E.F./NNP
Drake/NNP
Franconia/NNP
,/,
N.H/NNP
./.
Mr./NNP
Wanniski/NNP
might/MD
seem/VB
simplistic/JJ
to/TO
some/DT
when/WRB
he/PRP
blames/VBZ
the/DT
Oct./NNP
13/CD
market/NN
crashlet/NN
on/IN
Democratic/JJ
obstructionism/NN
of/IN
the/DT
president/NN
's/POS
capital-gains/NNS
proposal/NN
./.
But/CC
it/PRP
's/VBZ
quite/RB
true/JJ
Wall/NNP
Street/NNP
responds/VBZ
dramatically/RB
to/TO
changes/NNS
in/IN
the/DT
capital-gains/NNS
rate/NN
,/,
especially/RB
growth/NN
stocks/NNS
./.
The/DT
great/JJ
Growth/NNP
Bull/NNP
Market/NNP
began/VBD
in/IN
June/NNP
1978/CD
just/RB
when/WRB
the/DT
late/JJ
Rep./NNP
William/NNP
Steiger/NNP
's/POS
proposal/NN
to/TO
cut/VB
the/DT
capital-gains/NNS
tax/NN
to/TO
25/CD
%/NN
from/IN
almost/RB
50/CD
%/NN
began/VBD
to/TO
gather/VB
majority/NN
support/NN
in/IN
Congress/NNP
./.
The/DT
bull/NN
market/NN
in/IN
growth/NN
stocks/NNS
halted/VBD
when/WRB
the/DT
rate/NN
was/VBD
hiked/VBN
to/TO
28/CD
%/NN
from/IN
20/CD
%/NN
effective/JJ
January/NNP
1987/CD
./.
The/DT
Dow/NNP
and/CC
other/JJ
averages/NNS
continued/VBD
to/TO
advance/VB
,/,
but/CC
growth-stock/JJ
multiples/NNS
suffered/VBD
sclerosis/NN
from/IN
that/DT
point/NN
until/IN
this/DT
summer/NN
,/,
when/WRB
the/DT
market/NN
began/VBD
to/TO
realize/VB
the/DT
rate/NN
might/MD
indeed/RB
be/VB
lowered/VBN
./.
All/PDT
the/DT
indexes/NNS
surged/VBD
when/WRB
a/DT
lower/JJR
rate/NN
passed/VBD
the/DT
House/NN
./.
The/DT
UAL/NNP
financing/NN
reverse/NN
shocked/VBD
the/DT
market/NN
,/,
but/CC
the/DT
prospect/NN
of/IN
capital/NN
gains/NNS
not/RB
fulfilling/VBG
the/DT
market/NN
's/POS
hopes/NNS
was/VBD
also/RB
an/DT
important/JJ
factor/NN
./.
Richard/NNP
Gilder/NNP
Jr/NNP
./.
New/NNP
York/NNP
Mr./NNP
Wanniski/NNP
's/VBZ
opportuning/NN
of/IN
the/DT
recent/JJ
stock/NN
drubbing/NN
to/TO
castigate/VB
Sen./NNP
Bill/NNP
Bradley/NNP
for/IN
his/PRP$
opposition/NN
to/TO
a/DT
capital-gains/NNS
tax/NN
cut/NN
contains/VBZ
some/DT
clever/JJ
but/CC
faulty/JJ
reasoning/NN
./.
If/IN
Mr./NNP
Wanniski/NNP
's/POS
theory/NN
is/VBZ
right/JJ
,/,
that/IN
a/DT
tax/NN
cut/NN
increases/VBZ
the/DT
value/NN
of/IN
capital/NN
assets/NNS
held/VBN
by/IN
owners/NNS
,/,
would/MD
n't/RB
that/DT
increase/NN
also/RB
represent/VB
a/DT
rather/RB
dramatic/JJ
and/CC
totally/RB
unjustified/JJ
inflation/NN
of/IN
those/DT
values/NNS
?/.
According/VBG
to/TO
his/PRP$
figures/NNS
,/,
asset/NN
values/NNS
would/MD
be/VB
pumped/VBN
up/RP
some/DT
$/$
50/CD
billion/CD
overnight/RB
with/IN
the/DT
passage/NN
of/IN
the/DT
cut/NN
./.
This/DT
is/VBZ
``/``
real/JJ
money/NN
,/,
''/''
Mr./NNP
Wanniski/NNP
says/VBZ
./.
I/PRP
say/VBP
,/,
real/JJ
trouble/NN
./.
Robert/NNP
S./NNP
Giolito/NNP
Atlanta/NNP
The/DT
U.S./NNP
Export-Import/NNP
Bank/NNP
cleared/VBD
a/DT
$/$
25/CD
million/CD
loan/NN
to/TO
a/DT
telephone/NN
company/NN
in/IN
Chile/NNP
for/IN
the/DT
purchase/NN
of/IN
satellite/JJ
telecommunications/NNS|NN
network/NN
equipment/NN
from/IN
U.S./NNP
suppliers/NNS
./.
The/DT
Export-Import/NNP
Bank/NNP
said/VBD
Cia./NNP
de/NNP
Telefonos/NNP
de/IN
Chile/NNP
is/VBZ
buying/VBG
equipment/NN
and/CC
project/NN
management/NN
services/NNS
from/IN
Scientific-Atlanta/NNP
Inc./NNP
,/,
of/IN
Norcross/NNP
,/,
Ga./NNP
,/,
to/TO
extend/VB
telephone/NN
and/CC
data-transmission/NN
services/NNS
between/IN
Santiago/NNP
and/CC
other/JJ
Chilean/JJ
cities/NNS
./.
The/DT
bank/NN
said/VBD
several/JJ
other/JJ
U.S./NNP
companies/NNS
also/RB
will/MD
supply/VB
electronic/JJ
equipment/NN
for/IN
this/DT
project/NN
./.
The/DT
loan/NN
,/,
which/WDT
carries/VBZ
a/DT
9.65/CD
%/NN
annual/JJ
interest/NN
rate/NN
,/,
was/VBD
approved/VBN
after/IN
Scientific-Atlanta/NNP
won/VBD
a/DT
$/$
29.4/CD
million/CD
contract/NN
to/TO
supply/VB
equipment/NN
and/CC
services/NNS
for/IN
the/DT
project/NN
in/IN
Chile/NNP
./.
According/VBG
to/TO
Export-Import/NNP
Bank/NNP
officials/NNS
,/,
Japanese/JJ
and/CC
French/JJ
companies/NNS
also/RB
bid/VBD
for/IN
the/DT
business/NN
./.
Critics/NNS
of/IN
program/NN
trading/NN
are/VBP
calling/VBG
increasingly/RB
for/IN
regulators/NNS
to/TO
raise/VB
the/DT
cost/NN
of/IN
trading/VBG
stock-index/JJ
futures/NNS
./.
The/DT
idea/NN
:/:
Boost/VB
the/DT
amount/NN
of/IN
cash/NN
required/VBN
initially/RB
to/TO
buy/VB
or/CC
sell/VB
a/DT
stock-index/JJ
futures/NNS
contract/NN
from/IN
the/DT
relatively/RB
low/JJ
current/JJ
level/NN
of/IN
about/RB
7/CD
%/NN
of/IN
the/DT
contract/NN
's/POS
value/NN
to/TO
as/RB
much/JJ
as/IN
50/CD
%/NN
,/,
the/DT
same/JJ
amount/NN
investors/NNS
must/MD
put/VB
up/RP
to/TO
buy/VB
stocks/NNS
./.
Such/PDT
a/DT
move/NN
would/MD
curb/VB
speculation/NN
in/IN
stock-index/JJ
futures/NNS
,/,
the/DT
critics/NNS
contend/VBP
,/,
and/CC
that/DT
would/MD
stop/VB
the/DT
stock/NN
market/NN
's/POS
breathtaking/JJ
surges/NNS
and/CC
plunges/NNS
./.
But/CC
futures/NNS
traders/NNS
here/RB
argue/VBP
this/DT
cure/NN
is/VBZ
worse/JJR
than/IN
the/DT
volatility/NN
disease/NN
./.
They/PRP
warn/VBP
that/IN
raising/VBG
the/DT
costs/NNS
of/IN
trading/VBG
futures/NNS
could/MD
backfire/VB
and/CC
end/VB
up/RP
making/VBG
stocks/NNS
even/RB
more/RBR
volatile/JJ
./.
The/DT
debate/NN
over/IN
program/NN
trading/NN
is/VBZ
tearing/VBG
Wall/NNP
Street/NNP
asunder/RB
./.
Critics/NNS
are/VBP
much/RB
more/RBR
aggressive/JJ
than/IN
they/PRP
were/VBD
in/IN
1987/CD
,/,
the/DT
last/JJ
time/NN
the/DT
controversy/NN
raged/VBD
this/DT
heatedly/RB
./.
They/PRP
're/VBP
also/RB
more/RBR
effective/JJ
./.
Several/JJ
big/JJ
Wall/NNP
Street/NNP
securities/NNS
firms/NNS
have/VBP
bowed/VBN
to/TO
pressure/NN
and/CC
pulled/VBN
back/RP
in/IN
recent/JJ
days/NNS
from/IN
stock-index/JJ
arbitrage/NN
,/,
the/DT
form/NN
of/IN
program/NN
trading/NN
that/WDT
many/JJ
accuse/VBP
of/IN
amplifying/VBG
,/,
if/IN
not/RB
actually/RB
causing/VBG
,/,
stock-market/NN
volatility/NN
./.
In/IN
stock-index/JJ
arbitrage/NN
,/,
computer-assisted/JJ
traders/NNS
buy/VBP
and/CC
sell/VBP
large/JJ
amounts/NNS
of/IN
stock/NN
with/IN
offsetting/JJ
trades/NNS
in/IN
stock-index/JJ
futures/NNS
,/,
profiting/VBG
from/IN
fleeting/JJ
price/NN
discrepancies/NNS
between/IN
the/DT
two/CD
markets/NNS
./.
The/DT
190-point/JJ
plunge/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
Oct./NNP
13/CD
,/,
followed/VBN
by/IN
an/DT
80-point/JJ
rebound/NN
in/IN
the/DT
next/JJ
trading/NN
session/NN
,/,
set/VBD
off/RP
the/DT
current/JJ
outcry/NN
against/IN
program/NN
trading/NN
./.
Chicago/NNP
futures/NNS
traders/NNS
,/,
knowing/VBG
they/PRP
ca/MD
n't/RB
escape/VB
the/DT
critics/NNS
'/POS
wrath/NN
,/,
are/VBP
bracing/VBG
for/IN
trouble/NN
./.
They/PRP
got/VBD
a/DT
taste/NN
of/IN
it/PRP
yesterday/NN
morning/NN
in/IN
full-page/JJ
ads/NNS
in/IN
major/JJ
newspapers/NNS
,/,
including/VBG
this/DT
paper/NN
,/,
in/IN
which/WDT
Neuberger/NNP
&/CC
Berman/NNP
,/,
a/DT
big/JJ
money/NN
New/NNP
York/NNP
manager/NN
,/,
demanded/VBD
federal/JJ
regulators/NNS
``/``
immediately/RB
''/''
boost/VB
margins/NNS
on/IN
stock-index/JJ
futures/NNS
to/TO
50/CD
%/NN
./.
The/DT
term/NN
``/``
margin/NN
''/''
has/VBZ
slightly/RB
different/JJ
meanings/NNS
in/IN
the/DT
stock/NN
and/CC
futures/NNS
markets/NNS
,/,
but/CC
they/PRP
both/DT
describe/VBP
the/DT
amount/NN
of/IN
cash/NN
investors/NNS
must/MD
put/VB
up/RP
to/TO
get/VB
into/IN
the/DT
game/NN
./.
Stock/NN
margins/NNS
are/VBP
literally/RB
down/JJ
payments/NNS
made/VBN
toward/IN
the/DT
purchase/NN
of/IN
a/DT
stock/NN
,/,
and/CC
the/DT
level/NN
is/VBZ
set/VBN
by/IN
the/DT
Federal/NNP
Reserve/NNP
Board/NNP
./.
In/IN
the/DT
futures/NNS
market/NN
,/,
a/DT
margin/NN
payment/NN
is/VBZ
simply/RB
a/DT
good/JJ
faith/NN
deposit/NN
./.
Each/DT
exchange/NN
sets/VBZ
its/PRP$
own/JJ
minimums/NNS
,/,
with/IN
oversight/NN
by/IN
the/DT
Commodity/NNP
Futures/NNP
Trading/NNP
Commission/NNP
./.
Margin/NN
requirements/NNS
loom/VBP
large/JJ
in/IN
the/DT
program/NN
trading/NN
debate/NN
./.
Because/IN
a/DT
trader/NN
can/MD
control/VB
$/$
100/CD
in/IN
market/NN
value/NN
for/IN
$/$
7/CD
cash/NN
in/IN
the/DT
futures/NNS
market/NN
--/:
rather/RB
than/IN
for/IN
$/$
50/CD
in/IN
the/DT
stock/NN
market/NN
--/:
critics/NNS
contend/VBP
that/DT
speculation/NN
is/VBZ
encouraged/VBN
to/TO
a/DT
degree/NN
that/WDT
would/MD
be/VB
prohibitively/RB
expensive/JJ
in/IN
stocks/NNS
alone/RB
./.
And/CC
with/IN
the/DT
markets/NNS
linked/VBN
so/RB
closely/RB
through/IN
arbitrage/NN
,/,
speculation/NN
in/IN
futures/NNS
is/VBZ
translated/VBN
quickly/RB
into/IN
stocks/NNS
./.
But/CC
raising/VBG
stock-index/JJ
futures/NNS
margins/NNS
could/MD
make/VB
the/DT
stock/NN
market/NN
even/RB
more/RBR
volatile/JJ
,/,
futures/NNS
traders/NNS
contend/VBP
./.
Higher/JJR
margins/NNS
would/MD
price/VB
many/JJ
professional/JJ
speculators/NNS
--/:
whose/WP$
trades/NNS
help/VB
futures/NNS
markets/NNS
function/VB
smoothly/RB
--/:
out/IN
of/IN
business/NN
./.
If/IN
these/DT
speculators/NNS
ca/MD
n't/RB
afford/VB
to/TO
trade/NN
as/RB
actively/RB
as/IN
before/RB
,/,
stock-index/JJ
futures/NNS
prices/NNS
,/,
and/CC
therefore/RB
stock/NN
prices/NNS
,/,
may/MD
have/VB
to/TO
fall/VB
further/RBR
than/IN
they/PRP
might/MD
otherwise/RB
to/TO
attract/VB
buyers/NNS
./.
``/``
If/IN
you/PRP
drive/VBP
away/RB
the/DT
specs/NNS
,/,
then/RB
prices/NNS
will/MD
fall/VB
in/IN
both/CC
futures/NNS
and/CC
stocks/NNS
,/,
''/''
declared/VBD
the/DT
head/NN
of/IN
one/CD
Chicago/NNP
Mercantile/NNP
Exchange/NNP
member/NN
firm/NN
who/WP
asked/VBD
not/RB
to/TO
be/VB
named/VBN
,/,
reflecting/VBG
the/DT
highly/RB
charged/JJ
debate/NN
over/IN
program/NN
trading/NN
./.
Another/DT
consequence/NN
of/IN
driving/VBG
out/RP
speculators/NNS
here/RB
,/,
traders/NNS
say/VBP
,/,
could/MD
be/VB
to/TO
widen/VB
the/DT
momentary/JJ
price/NN
differences/NNS
between/IN
stocks/NNS
and/CC
stock-index/JJ
futures/NNS
that/WDT
entice/VBP
index/NN
arbitragers/NNS
in/IN
the/DT
first/JJ
place/NN
./.
That/DT
could/MD
trigger/VB
wide/JJ
price/NN
swings/NNS
and/CC
more/JJR
,/,
not/RB
less/JJR
,/,
stock-index/JJ
arbitrage/NN
./.
``/``
If/IN
you/PRP
decrease/VBP
the/DT
liquidity/NN
in/IN
the/DT
futures/NNS
market/NN
,/,
you/PRP
increase/VBP
the/DT
discrepancies/NNS
between/IN
stocks/NNS
and/CC
futures/NNS
,/,
''/''
said/VBD
Christopher/NNP
Pedersen/NNP
,/,
director/NN
of/IN
trading/NN
at/IN
Twenty-First/NNP
Securities/NNPS
Corp/NNP
./.
Opponents/NNS
of/IN
index/NN
arbitrage/NN
trading/NN
do/VBP
n't/RB
lose/VB
much/JJ
sleep/NN
over/IN
the/DT
prospect/NN
of/IN
futures/NNS
speculators/NNS
being/VBG
driven/VBN
out/IN
of/IN
the/DT
market/NN
./.
They/PRP
argue/VBP
that/IN
raising/VBG
the/DT
cost/NN
of/IN
trading/VBG
stock-index/JJ
futures/NNS
would/MD
eventually/RB
choke/VB
off/RP
price-jarring/JJ
arbitrage/NN
trades/NNS
between/IN
stocks/NNS
and/CC
futures/NNS
and/CC
increase/VB
the/DT
stability/NN
of/IN
stock/NN
prices/NNS
./.
``/``
You/PRP
would/MD
diminish/VB
the/DT
impact/NN
of/IN
stock-index/JJ
arbitrage/NN
enormously/RB
if/IN
you/PRP
change/VBP
the/DT
margin/NN
requirements/NNS
for/IN
futures/NNS
,/,
''/''
said/VBD
Richard/NNP
Cantor/NNP
,/,
chief/JJ
investment/NN
officer/NN
for/IN
Neuberger/NNP
&/CC
Berman/NNP
,/,
which/WDT
manages/VBZ
$/$
17.5/CD
billion/CD
in/IN
client/NN
funds/NNS
./.
Mr./NNP
Cantor/NNP
said/VBD
that/IN
it/PRP
was/VBD
difficult/JJ
to/TO
quantify/VB
the/DT
impact/NN
of/IN
stock/NN
index/NN
arbitrage/NN
on/IN
the/DT
performance/NN
of/IN
Neuberger/NNP
&/CC
Berman/NNP
--/:
whose/WP$
tax-exempt/JJ
accounts/NNS
are/VBP
lagging/VBG
broad/JJ
market/NN
averages/NNS
so/RB
far/RB
this/DT
year/NN
--/:
or/CC
of/IN
other/JJ
institutional/JJ
investors/NNS
./.
But/CC
he/PRP
echoed/VBD
the/DT
complaints/NNS
of/IN
other/JJ
money/NN
managers/NNS
in/IN
claiming/VBG
that/DT
stock-index/JJ
arbitrage/NN
has/VBZ
tended/VBN
to/TO
``/``
commoditize/VB
securities/NNS
,/,
shifting/VBG
from/IN
a/DT
focus/NN
on/IN
earnings/NNS
and/CC
assets/NNS
to/TO
a/DT
trading/NN
focus/NN
./.
''/''
Raising/VBG
stock-index/JJ
futures/NNS
margins/NNS
sharply/RB
could/MD
curtail/VB
the/DT
volume/NN
of/IN
index/NN
arbitrage/NN
trading/NN
by/IN
the/DT
handful/NN
of/IN
Wall/NNP
Street/NNP
securities/NNS
firms/NNS
that/WDT
dominate/VBP
the/DT
business/NN
./.
But/CC
these/DT
firms/NNS
,/,
many/DT
of/IN
whom/WP
say/VBP
they/PRP
have/VBP
already/RB
quit/VBN
doing/VBG
index/NN
arbitrage/NN
trades/NNS
for/IN
their/PRP$
own/JJ
accounts/NNS
,/,
are/VBP
especially/RB
resourceful/JJ
when/WRB
it/PRP
comes/VBZ
to/TO
taking/VBG
advantage/NN
of/IN
profitable/JJ
opportunities/NNS
./.
A/DT
few/JJ
firms/NNS
,/,
while/IN
claiming/VBG
not/RB
to/TO
trade/VB
for/IN
their/PRP$
own/JJ
accounts/NNS
,/,
are/VBP
effectively/RB
doing/VBG
just/RB
that/DT
in/IN
the/DT
guise/NN
of/IN
executing/VBG
customer/NN
orders/NNS
,/,
then/RB
quietly/RB
splitting/JJ
the/DT
profits/NNS
with/IN
their/PRP$
customers/NNS
,/,
futures/NNS
traders/NNS
say/VBP
./.
Tax-exempt/JJ
institutional/JJ
investors/NNS
do/VBP
n't/RB
trade/VB
on/IN
margin/NN
,/,
and/CC
therefore/RB
would/MD
n't/RB
be/VB
affected/VBN
by/IN
an/DT
increase/NN
in/IN
stock-index/JJ
futures/NNS
margins/NNS
./.
Raising/VBG
stock-index/JJ
futures/NNS
margins/NNS
sharply/RB
would/MD
n't/RB
have/VB
much/JJ
of/IN
an/DT
effect/NN
on/IN
S&P/NN
500/CD
futures/NNS
traders/NNS
known/VBN
as/IN
locals/NNS
./.
They/PRP
often/RB
trade/VBP
opposite/IN
brokerage/NN
firms/NNS
,/,
but/CC
as/RB
long/RB
as/IN
they/PRP
do/VBP
n't/RB
carry/VB
positions/NNS
overnight/RB
,/,
they/PRP
effectively/RB
trade/VBP
without/IN
putting/VBG
any/DT
money/NN
down/RP
./.
Futures/NNS
industry/NN
officials/NNS
here/RB
--/:
who/WP
fear/VBP
the/DT
program-trading/NN
debate/NN
might/MD
turn/VB
into/IN
an/DT
attack/NN
on/IN
the/DT
futures/NNS
markets/NNS
themselves/PRP
--/:
raise/VBP
the/DT
specter/NN
of/IN
foreign/JJ
competition/NN
when/WRB
they/PRP
argue/VBP
against/IN
the/DT
kinds/NNS
of/IN
changes/NNS
critics/NNS
are/VBP
proposing/VBG
./.
``/``
If/IN
futures/NNS
margins/NNS
are/VBP
raised/VBN
substantially/RB
,/,
some/DT
other/JJ
country/NN
will/MD
allow/VB
lower/JJR
margins/NNS
,/,
and/CC
that/DT
's/VBZ
where/WRB
the/DT
business/NN
will/MD
go/VB
,/,
''/''
said/VBD
Barry/NNP
Lind/NNP
,/,
chairman/NN
of/IN
Lind-Waldock/NNP
&/CC
Co./NNP
,/,
a/DT
futures/NNS
broker/NN
./.
Dillard/NNP
Department/NNP
Stores/NNPS
Inc./NNP
said/VBD
that/IN
stockholders/NNS
at/IN
a/DT
special/JJ
meeting/NN
approved/VBD
an/DT
amendment/NN
to/TO
increase/VB
the/DT
authorized/JJ
shares/NNS
of/IN
its/PRP$
Class/NNP
A/NNP
and/CC
Class/NNP
B/NNP
common/JJ
stock/NN
./.
The/DT
company/NN
said/VBD
that/IN
authorized/JJ
Class/NNP
A/NNP
common/JJ
shares/NNS
will/MD
increase/VB
to/TO
144.5/CD
million/CD
from/IN
76.8/CD
million/CD
and/CC
the/DT
authorized/JJ
Class/NNP
B/NNP
common/JJ
will/MD
increase/VB
to/TO
5.5/CD
million/CD
from/IN
3.2/CD
million/CD
shares/NNS
./.
After/IN
a/DT
bad/JJ
start/NN
,/,
Treasury/NNP
bonds/NNS
were/VBD
buoyed/VBN
by/IN
a/DT
late/JJ
burst/NN
of/IN
buying/VBG
to/TO
end/VB
modestly/RB
higher/RBR
./.
``/``
The/DT
market/NN
was/VBD
pretty/RB
dull/JJ
''/''
for/IN
most/JJS
of/IN
the/DT
day/NN
,/,
said/VBD
Robert/NNP
H./NNP
Chandross/NNP
,/,
vice/NN
president/NN
at/IN
Lloyds/NNP
Bank/NNP
PLC/NNP
./.
He/PRP
said/VBD
some/DT
investors/NNS
were/VBD
reluctant/JJ
to/TO
plunge/VB
into/IN
the/DT
market/NN
ahead/RB
of/IN
several/JJ
key/JJ
economic/JJ
indicators/NNS
due/RB
this/DT
week/NN
,/,
especially/RB
Friday/NNP
's/POS
potentially/RB
market-moving/JJ
employment/NN
report/NN
./.
During/IN
the/DT
first/JJ
hour/NN
of/IN
trading/NN
yesterday/NN
,/,
prices/NNS
fell/VBD
as/RB
much/RB
as/IN
1\/4/CD
point/NN
,/,
or/CC
down/RB
about/RB
$/$
2.50/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
./.
But/CC
market/NN
activity/NN
was/VBD
energized/VBN
as/IN
investors/NNS
started/VBD
to/TO
view/VB
the/DT
lower/JJR
price/NN
levels/NNS
as/IN
attractive/JJ
./.
And/CC
the/DT
Treasury/NNP
's/POS
$/$
17.6/CD
billion/CD
auction/NN
of/IN
short-term/JJ
bills/NNS
,/,
which/WDT
generated/VBD
strong/JJ
buying/NN
interest/NN
,/,
helped/VBD
to/TO
lift/VB
the/DT
bond/NN
market/NN
out/IN
of/IN
the/DT
doldrums/NN
./.
``/``
We/PRP
saw/VBD
good/JJ
retail/JJ
demand/NN
by/IN
small/JJ
banks/NNS
,/,
individuals/NNS
and/CC
institutions/NNS
and/CC
that/DT
is/VBZ
one/CD
reason/NN
why/WRB
the/DT
market/NN
advanced/VBD
''/''
late/RB
in/IN
the/DT
day/NN
,/,
said/VBD
Sung/NNP
Won/NNP
Sohn/NNP
,/,
senior/JJ
vice/NN
president/NN
and/CC
chief/JJ
economist/NN
at/IN
Norwest/NNP
Corp./NNP
,/,
Minneapolis/NNP
./.
He/PRP
said/VBD
the/DT
change/NN
in/IN
sentiment/NN
also/RB
reflected/VBD
perceptions/NNS
that/IN
the/DT
slate/NN
of/IN
economic/JJ
statistic/NN
due/RB
this/DT
week/NN
will/MD
be/VB
``/``
conducive/JJ
to/TO
a/DT
bond/NN
market/NN
rally/NN
./.
''/''
The/DT
employment/NN
report/NN
,/,
which/WDT
will/MD
provide/VB
the/DT
first/JJ
official/JJ
measure/NN
of/IN
the/DT
economy/NN
's/POS
strength/NN
in/IN
October/NNP
,/,
is/VBZ
expected/VBN
to/TO
show/VB
smaller/JJR
gains/NNS
in/IN
the/DT
generation/NN
of/IN
new/JJ
jobs/NNS
./.
Other/JJ
key/JJ
economic/JJ
indicators/NNS
due/RB
this/DT
week/NN
include/VBP
today/NN
's/POS
release/NN
of/IN
the/DT
September/NNP
leading/VBG
indicators/NNS
index/NN
and/CC
new-home/JJ
sales/NNS
./.
Tomorrow/NNP
,/,
the/DT
October/NNP
purchasing/NN
managers/NNS
report/NN
is/VBZ
due/JJ
and/CC
on/IN
Thursday/NNP
comes/VBZ
October/NNP
chain-store/JJ
sales/NNS
./.
Despite/IN
yesterday/NN
's/POS
modest/JJ
bond/NN
market/NN
gains/NNS
,/,
economists/NNS
say/VBP
investors/NNS
are/VBP
anxious/JJ
about/IN
the/DT
Treasury/NNP
's/POS
huge/JJ
quarterly/NN
refunding/VBG
of/IN
government/NN
debt/NN
,/,
the/DT
timing/NN
of/IN
which/WDT
depends/VBZ
on/IN
Congressional/JJ
efforts/NNS
to/TO
raise/VB
the/DT
debt/NN
ceiling/NN
./.
Although/IN
the/DT
Treasury/NNP
will/MD
announce/VB
details/NNS
of/IN
the/DT
November/NNP
refunding/NN
tomorrow/NN
,/,
it/PRP
could/MD
be/VB
delayed/VBN
if/IN
Congress/NNP
and/CC
President/NNP
Bush/NNP
fail/VBP
to/TO
increase/VB
the/DT
Treasury/NNP
's/POS
borrowing/NN
capacity/NN
./.
The/DT
debt/NN
ceiling/NN
is/VBZ
scheduled/VBN
to/TO
fall/VB
to/TO
$/$
2.8/CD
trillion/CD
from/IN
$/$
2.87/CD
trillion/CD
at/IN
midnight/NN
tonight/NN
./.
The/DT
Treasury/NNP
's/POS
benchmark/NN
30-year/JJ
bond/NN
rose/VBD
1\/8/CD
point/NN
./.
Mortgage-backed/JJ
securities/NNS
were/VBD
up/RB
less/JJR
than/IN
1\/8/CD
point/NN
and/CC
investment-grade/JJ
corporate/JJ
bonds/NNS
were/VBD
unchanged/JJ
./.
Strong/JJ
demand/NN
for/IN
New/NNP
York/NNP
City/NNP
's/POS
$/$
813/CD
million/CD
general/JJ
obligation/NN
bonds/NNS
propped/VBN
up/RP
the/DT
municipal/JJ
market/NN
./.
Traders/NNS
said/VBD
most/JJS
municipal/JJ
bonds/NNS
ended/VBD
1\/2/CD
point/NN
higher/RBR
./.
The/DT
New/NNP
York/NNP
City/NNP
issue/NN
included/VBD
$/$
757/CD
million/CD
of/IN
tax-exempt/JJ
bonds/NNS
priced/VBN
to/TO
yield/VB
between/IN
6.50/CD
%/NN
to/TO
7.88/CD
%/NN
,/,
depending/VBG
on/IN
the/DT
maturity/NN
./.
The/DT
$/$
56/CD
million/CD
of/IN
New/NNP
York/NNP
's/POS
taxable/JJ
general/JJ
obligation/NN
bonds/NNS
were/VBD
priced/VBN
to/TO
yield/VB
between/IN
9.125/CD
%/NN
to/TO
9.90/CD
%/NN
./.
As/IN
expected/VBN
,/,
the/DT
longer-term/JJ
tax-exempt/JJ
New/NNP
York/NNP
bonds/NNS
had/VBD
yields/NNS
nearly/RB
as/RB
high/JJ
as/IN
those/DT
on/IN
taxable/JJ
long-term/JJ
Treasury/NNP
bonds/NNS
./.
The/DT
yield/NN
on/IN
the/DT
benchmark/JJ
30-year/JJ
Treasury/NNP
bond/NN
ended/VBD
yesterday/NN
at/IN
about/RB
7.92/CD
%/NN
./.
Bond/NN
dealers/NNS
said/VBD
the/DT
rates/NNS
for/IN
the/DT
long-term/JJ
tax-exempt/JJ
New/NNP
York/NNP
City/NNP
bonds/NNS
were/VBD
among/IN
the/DT
highest/JJS
,/,
as/IN
a/DT
percentage/NN
of/IN
Treasury/NNP
rates/NNS
,/,
for/IN
any/DT
New/NNP
York/NNP
City/NNP
issue/NN
in/IN
recent/JJ
memory/NN
./.
A/DT
spokesman/NN
for/IN
New/NNP
York/NNP
City/NNP
Comptroller/NNP
Harrison/NNP
Goldin/NNP
said/VBD
the/DT
high/JJ
rates/NNS
reflect/VBP
investors/NNS
concerns/NNS
about/IN
the/DT
city/NN
's/POS
financial/JJ
health/NN
and/CC
political/JJ
uncertainties/NNS
./.
New/NNP
York/NNP
bonds/NNS
,/,
which/WDT
have/VBP
been/VBN
hammered/VBN
in/IN
recent/JJ
weeks/NNS
on/IN
the/DT
pending/VBG
supply/NN
and/CC
reports/NNS
that/IN
the/DT
city/NN
's/POS
economy/NN
is/VBZ
growing/VBG
weaker/JJR
,/,
rose/VBD
1\/2/CD
point/NN
yesterday/NN
./.
Treasury/NNP
Securities/NNP
Treasury/NNP
bonds/NNS
ended/VBD
slightly/RB
higher/RBR
in/IN
light/JJ
trading/VBG
./.
The/DT
benchmark/NN
30-year/JJ
bond/NN
ended/VBN
at/IN
102/CD
7\/32/CD
to/TO
yield/VB
7.92/CD
%/NN
,/,
compared/VBN
with/IN
Friday/NNP
's/POS
price/NN
of/IN
102/CD
2\/32/CD
to/TO
yield/VB
7.93/CD
%/NN
./.
The/DT
latest/JJS
10-year/JJ
notes/NNS
ended/VBD
at/IN
about/RB
100/CD
16\/32/CD
to/TO
yield/VB
7.90/CD
%/NN
,/,
compared/VBN
with/IN
100/CD
11\/32/CD
to/TO
yield/VB
7.93/CD
%/NN
on/IN
Friday/NNP
./.
Short-term/JJ
interest/NN
rates/NNS
rose/VBD
at/IN
the/DT
government/NN
's/POS
regular/JJ
weekly/JJ
Treasury-bill/NN
auction/NN
./.
The/DT
average/JJ
discount/NN
rate/NN
on/IN
three-month/JJ
bills/NNS
was/VBD
7.78/CD
%/NN
and/CC
the/DT
rate/NN
on/IN
six-month/JJ
bills/NNS
was/VBD
7.62/CD
%/NN
./.
Those/DT
rates/NNS
are/VBP
up/RB
from/IN
7.52/CD
%/NN
and/CC
7.50/CD
%/NN
,/,
respectively/RB
,/,
at/IN
last/JJ
week/NN
's/POS
auction/NN
./.
Due/JJ
to/TO
the/DT
Treasury/NNP
's/POS
need/NN
to/TO
raise/VB
funds/NNS
quickly/RB
before/IN
the/DT
current/JJ
authority/NN
to/TO
issue/VB
debt/NN
expires/VBZ
at/IN
midnight/NN
tonight/NN
,/,
yesterday/NN
's/POS
auction/NN
was/VBD
structured/VBN
differently/RB
from/IN
previous/JJ
sales/NNS
./.
The/DT
Treasury/NNP
bills/NNS
sold/VBD
yesterday/NN
settle/VB
today/NN
,/,
rather/RB
than/IN
the/DT
standard/JJ
settlement/NN
day/NN
of/IN
Thursday/NNP
./.
And/CC
because/IN
of/IN
the/DT
early/JJ
settlement/NN
,/,
the/DT
three-month/JJ
bills/NNS
actually/RB
have/VBP
a/DT
93-day/JJ
maturity/NN
,/,
and/CC
the/DT
six-month/JJ
bills/NNS
have/VBP
an/DT
184-day/JJ
maturity/NN
./.
Because/IN
of/IN
the/DT
early/JJ
settlement/NN
,/,
the/DT
Federal/NNP
Reserve/NNP
was/VBD
unable/JJ
to/TO
purchase/VB
bills/NNS
for/IN
its/PRP$
system/NN
account/NN
./.
However/RB
,/,
analysts/NNS
expect/VBP
the/DT
Fed/NNP
to/TO
buy/VB
Treasury/NNP
bills/NNS
that/WDT
were/VBD
auctioned/VBN
yesterday/NN
in/IN
the/DT
secondary/JJ
market/NN
./.
The/DT
Treasury/NNP
also/RB
held/VBD
a/DT
hastily/RB
scheduled/VBN
$/$
2/CD
billion/CD
sale/NN
of/IN
51-cash/JJ
management/NN
bills/NNS
yesterday/NN
./.
Here/RB
are/VBP
details/NNS
of/IN
yesterday/NN
's/POS
three-month/JJ
and/CC
six-month/JJ
bill/NN
auction/NN
:/:
Rates/NNS
are/VBP
determined/VBN
by/IN
the/DT
difference/NN
between/IN
the/DT
purchase/NN
price/NN
and/CC
face/NN
value/NN
./.
Thus/RB
,/,
higher/JJR
bidding/NN
narrows/VBZ
the/DT
investor/NN
's/POS
return/NN
while/IN
lower/JJR
bidding/NN
widens/VBZ
it/PRP
./.
The/DT
percentage/NN
rates/NNS
are/VBP
calculated/VBN
on/IN
a/DT
360-day/JJ
year/NN
,/,
while/IN
the/DT
coupon/NN
equivalent/JJ
yield/NN
is/VBZ
based/VBN
on/IN
a/DT
365-day/JJ
year/NN
./.
Both/DT
issues/NNS
are/VBP
dated/VBN
Oct./NNP
31/CD
./.
The/DT
13-week/JJ
bills/NNS
mature/VBP
Feb./NNP
1/CD
,/,
and/CC
the/DT
26-week/JJ
bills/NNS
mature/VBP
May/NNP
3/CD
,/,
1990/CD
./.
Here/RB
are/VBP
details/NNS
of/IN
yesterday/NN
's/POS
51-day/JJ
cash/NN
management/NN
bill/NN
auction/NN
:/:
Interest/NN
rate/NN
8.07/CD
%/NN
The/DT
bills/NNS
are/VBP
dated/VBN
Oct./NNP
31/CD
and/CC
mature/NNP
Dec./NNP
21/CD
,/,
1989/CD
./.
Corporate/NNP
Issues/NNP
The/DT
junk/NN
bond/NN
prices/NNS
of/IN
Western/NNP
Union/NNP
Corp./NNP
tumbled/VBD
after/RB
the/DT
company/NN
said/VBD
it/PRP
wo/MD
n't/RB
proceed/VB
with/IN
an/DT
exchange/NN
offer/NN
to/TO
holders/NNS
of/IN
its/PRP$
reset/NN
notes/NNS
./.
The/DT
Upper/NNP
Saddle/NNP
River/NNP
,/,
N.J./NNP
,/,
communications/NNS
firm/NN
said/VBD
it/PRP
is/VBZ
considering/VBG
alternatives/NNS
to/TO
the/DT
restructuring/VBG
of/IN
the/DT
senior/JJ
secured/VBN
notes/NNS
because/IN
of/IN
changes/NNS
in/IN
the/DT
high-yield/JJ
market/NN
./.
In/IN
June/NNP
,/,
Western/NNP
Union/NNP
was/VBD
forced/VBN
to/TO
reset/VB
the/DT
interest/NN
rate/NN
on/IN
the/DT
senior/JJ
secured/VBN
notes/NNS
due/RB
in/IN
1992/CD
to/TO
19/CD
1\/4/CD
%/NN
from/IN
16/CD
1\/2/CD
%/NN
,/,
a/DT
move/NN
which/WDT
increased/VBD
the/DT
firm/NN
's/POS
annual/JJ
interest/NN
payments/NNS
by/IN
$/$
13.8/CD
million/CD
./.
Although/IN
the/DT
notes/NNS
held/VBD
at/IN
a/DT
price/NN
of/IN
92/CD
to/TO
93/CD
immediately/RB
after/IN
the/DT
reset/NN
,/,
they/PRP
started/VBD
falling/VBG
soon/RB
afterward/RB
./.
Yesterday/NN
,/,
Western/NNP
Union/NNP
's/POS
senior/JJ
secured/VBN
reset/NN
notes/NNS
fell/VBD
3/CD
3\/4/CD
points/NNS
,/,
or/CC
about/RB
$/$
37.50/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
,/,
to/TO
close/VB
at/IN
50/CD
1\/4/CD
./.
Other/JJ
Western/NNP
Union/NNP
securities/NNS
were/VBD
also/RB
lower/JJR
./.
The/DT
company/NN
's/POS
7.90/CD
%/NN
sinking/NN
fund/NN
debentures/NNS
were/VBD
quoted/VBN
at/IN
a/DT
bid/NN
price/NN
of/IN
14/CD
1\/4/CD
and/CC
an/DT
offered/VBN
price/NN
of/IN
30/CD
,/,
while/IN
the/DT
10/CD
3\/4/CD
%/NN
subordinated/VBD
debentures/NNS
of/IN
1997/CD
were/VBD
being/VBG
bid/VBN
for/IN
at/IN
28/CD
and/CC
offered/VBD
at/IN
around/RB
34/CD
3\/4/CD
./.
The/DT
10/CD
3\/4/CD
%/NN
debentures/NNS
last/RB
traded/VBD
at/IN
35/CD
./.
High-yield/JJ
traders/NNS
said/VBD
spreads/NNS
between/IN
the/DT
bid/NN
and/CC
offered/VBN
prices/NNS
of/IN
Western/NNP
Union/NNP
junk/NN
bonds/NNS
have/VBP
been/VBN
widening/VBG
for/IN
some/DT
time/NN
,/,
and/CC
in/IN
certain/JJ
cases/NNS
,/,
bids/NNS
for/IN
Western/NNP
Union/NNP
securities/NNS
are/VBP
not/RB
available/JJ
./.
Elsewhere/RB
,/,
prices/NNS
of/IN
investment-grade/JJ
and/CC
high-risk/JJ
,/,
high-yield/JJ
junk/NN
bonds/NNS
ended/VBD
unchanged/JJ
./.
In/IN
the/DT
new-issue/JJ
market/NN
for/IN
junk/NN
securities/NNS
,/,
underwriters/NNS
at/IN
Salomon/NNP
Brothers/NNP
Inc./NNP
are/VBP
expected/VBN
to/TO
price/VB
today/NN
a/DT
$/$
350/CD
million/CD
junk/NN
bond/NN
offering/NN
by/IN
Beatrice/NNP
Co./NNP
./.
The/DT
two-part/JJ
issue/NN
consists/VBZ
of/IN
$/$
200/CD
million/CD
of/IN
senior/JJ
subordinated/VBN
reset/NN
notes/NNS
maturing/VBG
in/IN
1997/CD
and/CC
$/$
150/CD
million/CD
of/IN
subordinated/VBN
floating/VBG
rate/NN
notes/NNS
also/RB
maturing/VBG
in/IN
1997/CD
./.
Portfolio/NN
managers/NNS
said/VBD
expectations/NNS
are/VBP
for/IN
the/DT
issue/NN
to/TO
be/VB
priced/VBN
at/IN
a/DT
discount/NN
with/IN
a/DT
coupon/NN
of/IN
13/CD
3\/4/CD
%/NN
and/CC
a/DT
yield/NN
of/IN
about/RB
14/CD
%/NN
./.
The/DT
Chicago-based/JJ
food/NN
and/CC
consumer/NN
goods/NNS
concern/NN
was/VBD
acquired/VBN
in/IN
April/NNP
1986/CD
in/IN
a/DT
$/$
6.2/CD
billion/CD
leveraged/VBN
buy-out/NN
engineered/VBN
by/IN
Kohlberg/NNP
Kravis/NNP
Roberts/NNP
&/CC
Co/NNP
./.
Proceeds/NNS
from/IN
the/DT
note/NN
sale/NN
will/MD
be/VB
used/VBN
to/TO
repay/VB
a/DT
portion/NN
of/IN
the/DT
bank/NN
borrowings/NNS
used/VBN
by/IN
Beatrice/NNP
to/TO
redeem/VB
its/PRP$
$/$
526.3/CD
million/CD
principal/JJ
amount/NN
of/IN
increasing/VBG
rate/NN
debentures/NNS
in/IN
August/NNP
./.
Meanwhile/RB
,/,
underwriters/NNS
at/IN
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
are/VBP
expected/VBN
today/NN
to/TO
price/VB
a/DT
$/$
350/CD
million/CD
high-yield/JJ
offering/NN
by/IN
Continental/NNP
Cablevision/NNP
Inc/NNP
./.
The/DT
senior/JJ
subordinated/VBN
debentures/NNS
maturing/VBG
in/IN
2004/CD
are/VBP
targeted/VBN
to/TO
be/VB
offered/VBN
at/IN
a/DT
yield/NN
of/IN
between/IN
12/CD
5\/8/CD
%/NN
to/TO
12/CD
3\/4/CD
%/NN
./.
Mortgage-Backed/JJ
Securities/NNP
Mortgage/NN
securities/NNS
ended/VBD
2\/32/CD
to/TO
4\/32/CD
higher/RBR
in/IN
light/JJ
trading/NN
./.
Ginnie/NNP
Mae/NNP
's/POS
9/CD
%/NN
issue/NN
for/IN
November/NNP
delivery/NN
finished/VBN
at/IN
98/CD
1\/2/CD
,/,
up/RB
4\/32/CD
,/,
and/CC
its/PRP$
10/CD
%/NN
issue/NN
at/IN
102/CD
3\/8/CD
,/,
up/RB
4\/32/CD
./.
Freddie/NNP
Mac/NNP
's/POS
9/CD
%/NN
issue/NN
ended/VBN
at/IN
97/CD
19\/32/CD
,/,
up/RB
2\/32/CD
./.
In/IN
the/DT
derivative/JJ
market/NN
,/,
insurance/NN
companies/NNS
have/VBP
scaled/VBN
back/RB
their/PRP$
purchases/NNS
of/IN
Remic/NNP
securities/NNS
,/,
or/CC
real/JJ
estate/NN
mortgage/NN
investment/NN
conduits/NNS
,/,
as/IN
they/PRP
assess/VBP
potential/JJ
claims/NNS
from/IN
the/DT
recent/JJ
California/NNP
earthquake/NN
and/CC
hurricane/NN
in/IN
the/DT
Carolinas/NNPS
./.
This/DT
could/MD
mean/VB
diminished/JJ
issuance/NN
of/IN
derivative/JJ
mortgage/NN
issues/NNS
during/IN
the/DT
next/JJ
few/JJ
weeks/NNS
./.
Insurance/NN
companies/NNS
have/VBP
been/VBN
major/JJ
buyers/NNS
of/IN
prepayment-protected/JJ
planned/VBN
amortization/NN
classes/NNS
PACs/NNPS
the/DT
past/JJ
few/JJ
months/NNS
./.
The/DT
PACs/NNPS
appeal/NN
to/TO
insurance/NN
companies/NNS
and/CC
other/JJ
investors/NNS
because/IN
they/PRP
have/VBP
higher/JJR
yields/NNS
than/IN
topgrade/JJ
corporate/JJ
bonds/NNS
and/CC
carry/VBP
the/DT
guarantee/NN
of/IN
Freddie/NNP
Mac/NNP
and/CC
Fannie/NNP
Mae/NNP
,/,
quasi-federal/JJ
agencies/NNS
./.
In/IN
the/DT
asset-backed/JJ
market/NN
,/,
Beneficial/NNP
Corp./NNP
offered/VBD
$/$
248/CD
million/CD
of/IN
securities/NNS
backed/VBN
by/IN
home-equity/NN
loans/NNS
,/,
the/DT
second/JJ
large/JJ
deal/NN
in/IN
the/DT
past/NN
week/NN
./.
Last/JJ
week/NN
,/,
a/DT
unit/NN
of/IN
MNC/NNP
Financial/NNP
Corp./NNP
offered/VBD
$/$
268/CD
million/CD
of/IN
home-equity/NN
securities/NNS
./.
Both/DT
the/DT
MNC/NNP
and/CC
Beneficial/NNP
offering/NN
were/VBD
underwritten/JJ
by/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
,/,
the/DT
leading/VBG
Wall/NNP
Street/NNP
firm/NN
in/IN
the/DT
home-equity/NN
securities/NNS
market/NN
,/,
which/WDT
was/VBD
created/VBN
early/RB
this/DT
year/NN
./.
Municipal/NNP
Issues/NNP
The/DT
improved/JJ
tone/NN
in/IN
the/DT
municipal/JJ
market/NN
,/,
largely/RB
an/DT
offshoot/NN
of/IN
the/DT
New/NNP
York/NNP
City/NNP
sale/NN
's/POS
reception/NN
,/,
helped/VBD
municipal/JJ
futures/NNS
rebound/VB
from/IN
early/JJ
lows/NNS
,/,
but/CC
the/DT
spread/NN
between/IN
the/DT
contract/NN
and/CC
Tbond/JJ
futures/NNS
continued/VBD
to/TO
grow/VB
more/RBR
negative/JJ
./.
The/DT
MOB/NNP
spread/NN
,/,
or/CC
difference/NN
between/IN
the/DT
municipal/JJ
and/CC
T-bond/JJ
futures/NNS
contracts/NNS
,/,
has/VBZ
been/VBN
near/IN
all-time/JJ
lows/NNS
in/IN
recent/JJ
trading/NN
,/,
driven/VBN
basically/RB
by/IN
concerns/NNS
that/IN
new-issue/JJ
supply/NN
would/MD
overwhelm/VB
demand/NN
./.
December/NNP
municipal/JJ
futures/NNS
ended/VBN
up/RP
11\/32/CD
point/NN
to/TO
92-14/CD
,/,
having/VBG
pulled/VBN
off/RP
a/DT
morning/NN
low/NN
of/IN
91-23/CD
as/IN
cash/NN
municipals/NNS
rebounded/VBD
./.
But/CC
front/JJ
month/NN
T-bond/JJ
futures/NNS
settled/VBD
the/DT
afternoon/NN
session/NN
up/RB
a/DT
slightly/RB
greater/JJR
13\/32/CD
at/IN
99-04/CD
./.
Foreign/NNP
Bonds/NNP
British/JJ
government/NN
bonds/NNS
ended/VBD
moderately/RB
higher/RBR
,/,
encouraged/VBN
by/IN
a/DT
steadier/JJR
pound/NN
and/CC
a/DT
rise/NN
in/IN
British/JJ
stocks/NNS
./.
The/DT
benchmark/NN
11/CD
3\/4/CD
%/NN
bond/NN
due/JJ
2003\/2007/CD
rose/VBD
10\/32/CD
to/TO
111/CD
14\/32/CD
to/TO
yield/VB
10.14/CD
%/NN
,/,
while/IN
the/DT
Treasury/NNP
's/POS
12/CD
%/NN
notes/NNS
due/JJ
1995/CD
rose/VBD
7\/32/CD
to/TO
103/CD
5\/8/CD
to/TO
yield/VB
11.04/CD
%/NN
./.
West/NNP
German/NNP
government/NN
bonds/NNS
fell/VBD
as/RB
much/RB
as/IN
0.60/CD
point/NN
in/IN
light/JJ
,/,
nervous/JJ
trading/VBG
./.
The/DT
7/CD
%/NN
Treasury/NNP
bond/NN
due/JJ
October/NNP
1999/CD
ended/VBD
off/RB
0.60/CD
point/NN
to/TO
99.35/CD
to/TO
yield/VB
7.09/CD
%/NN
,/,
while/IN
the/DT
6/CD
3\/4/CD
%/NN
notes/NNS
due/JJ
1994/CD
fell/VBD
0.35/CD
point/NN
to/TO
97.25/CD
to/TO
yield/VB
7.45/CD
%/NN
./.
Japanese/JJ
government/NN
bonds/NNS
continued/VBD
to/TO
erode/VB
as/IN
the/DT
dollar/NN
remained/VBD
resilient/JJ
against/IN
the/DT
yen/NN
./.
Japan/NNP
's/POS
No./NN
111/CD
4.6/CD
%/NN
bond/NN
due/JJ
1998/CD
ended/VBD
the/DT
day/NN
on/IN
brokers/NNS
screens/NNS
at/IN
95.11/CD
to/TO
yield/VB
5.43/CD
%/NN
./.
So-called/JJ
cross-border/JJ
acquisitions/NNS
totaled/VBD
$/$
23.1/CD
billion/CD
in/IN
the/DT
second/JJ
quarter/NN
,/,
down/RB
from/IN
$/$
33.6/CD
billion/CD
a/DT
year/NN
earlier/RB
,/,
according/VBG
to/TO
the/DT
accounting/NN
firm/NN
KPMG/NNP
Peat/NNP
Marwick/NNP
./.
In/IN
a/DT
cross-border/JJ
transaction/NN
,/,
the/DT
buyer/NN
is/VBZ
in/IN
a/DT
different/JJ
region/NN
of/IN
the/DT
globe/NN
from/IN
the/DT
target/NN
./.
Such/JJ
transactions/NNS
numbered/VBD
670/CD
in/IN
the/DT
second/JJ
quarter/NN
,/,
up/IN
from/IN
527/CD
a/DT
year/NN
earlier/RB
./.
However/RB
,/,
the/DT
total/JJ
value/NN
declined/VBD
for/IN
deals/NNS
of/IN
$/$
100/CD
million/CD
and/CC
up/RB
./.
The/DT
downturn/NN
in/IN
total/JJ
value/NN
may/MD
be/VB
only/RB
temporary/JJ
,/,
suggested/VBD
Herb/NNP
Adler/NNP
,/,
a/DT
KPMG/NNP
Peat/NNP
Marwick/NNP
partner/NN
./.
He/PRP
explained/VBD
,/,
in/IN
part/NN
,/,
that/IN
restructuring/VBG
to/TO
prepare/VB
for/IN
the/DT
Common/NNP
Market/NNP
expansion/NN
due/NN
in/IN
1992/CD
``/``
has/VBZ
become/VBN
more/JJR
of/IN
a/DT
strategic/JJ
priority/NN
,/,
both/DT
for/IN
companies/NNS
inside/IN
and/CC
outside/IN
the/DT
European/NNP
Community/NNP
./.
''/''
In/IN
the/DT
second/JJ
quarter/NN
,/,
middle-market/JJ
cross-border/JJ
transactions/NNS
--/:
deals/NNS
under/IN
$/$
100/CD
million/CD
each/DT
--/:
numbered/VBD
619/CD
and/CC
totaled/VBD
$/$
6/CD
billion/CD
,/,
compared/VBN
with/IN
478/CD
such/JJ
transactions/NNS
totaling/VBG
$/$
4.9/CD
billion/CD
a/DT
year/NN
earlier/RB
,/,
the/DT
firm/NN
said/VBD
./.
Large/JJ
cross-border/JJ
deals/NNS
numbered/VBD
51/CD
and/CC
totaled/VBD
$/$
17.1/CD
billion/CD
in/IN
the/DT
second/JJ
quarter/NN
,/,
the/DT
firm/NN
added/VBD
./.
That/DT
compared/VBD
with/IN
49/CD
such/JJ
transactions/NNS
totaling/VBG
$/$
28.7/CD
billion/CD
as/IN
year/NN
earlier/RB
./.
Rymer/NNP
Foods/NNP
Inc./NNP
said/VBD
its/PRP$
board/NN
authorized/VBD
the/DT
purchase/NN
of/IN
as/RB
many/JJ
as/IN
500,000/CD
of/IN
its/PRP$
common/JJ
stock/NN
purchase/NN
warrants/NNS
at/IN
a/DT
price/NN
of/IN
$/$
4/CD
a/DT
warrant/NN
./.
The/DT
food/NN
company/NN
,/,
which/WDT
has/VBZ
720,000/CD
warrants/NNS
and/CC
about/RB
2.9/CD
million/CD
common/JJ
shares/NNS
outstanding/JJ
,/,
said/VBD
it/PRP
may/MD
increase/VB
the/DT
offer/NN
to/TO
purchase/VB
any/DT
or/CC
all/DT
warrants/NNS
that/WDT
are/VBP
properly/RB
tendered/VBN
./.
A/DT
warrant/NN
permits/VBZ
a/DT
holder/NN
to/TO
acquire/VB
one/CD
share/NN
of/IN
common/JJ
stock/NN
for/IN
$/$
17.50/CD
a/DT
share/NN
./.
The/DT
warrants/NNS
expire/VBP
on/IN
Oct./NNP
15/CD
,/,
1992/CD
,/,
and/CC
may/MD
be/VB
called/VBN
by/IN
the/DT
company/NN
at/IN
a/DT
price/NN
of/IN
$/$
5.25/CD
./.
The/DT
offer/NN
is/VBZ
scheduled/VBN
to/TO
expire/VB
on/IN
Nov./NNP
28/CD
,/,
unless/IN
extended/VBN
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Rymer/NNP
closed/VBD
yesterday/NN
at/IN
$/$
10.875/CD
,/,
down/RB
12.5/CD
cents/NNS
./.
Seasonal/NNP
Stackup/NNP
Air-traffic/NN
problems/NNS
,/,
though/RB
often/RB
quite/RB
grim/JJ
,/,
This/DT
time/NN
of/IN
year/NN
leave/VBP
us/PRP
in/IN
stitches/NNS
,/,
When/WRB
we/PRP
notice/VBP
around/IN
our/PRP$
airport/NN
A/DT
holding/NN
pattern/NN
for/IN
witches/NNS
./.
--/:
Edward/NNP
F./NNP
Dempsey/NNP
./.
Double-Jointed/NNP
``/``
I/PRP
am/VBP
beside/RB
myself/PRP
,/,
''/''
I/PRP
've/VBP
said/VBD
in/IN
moments/NNS
of/IN
heat/NN
,/,
Without/IN
ever/RB
bothering/VBG
To/TO
marvel/VB
at/IN
the/DT
feat/NN
./.
--/:
Joshua/NNP
Adams/NNP
./.
Humility/NNP
Helper/NNP
The/DT
ultimate/JJ
blow/NN
to/TO
the/DT
ego/NN
is/VBZ
learning/VBG
that/IN
even/RB
your/PRP$
mistakes/NNS
go/VBP
unnoticed/JJ
./.
--/:
Ivern/NNP
Ball/NNP
./.
Gen-Probe/NNP
Inc./NNP
,/,
a/DT
biotechnology/NN
concern/NN
,/,
said/VBD
it/PRP
signed/VBD
a/DT
definitive/JJ
agreement/NN
to/TO
be/VB
acquired/VBN
by/IN
Chugai/NNP
Pharmaceutical/NNP
Co./NNP
of/IN
Tokyo/NNP
for/IN
about/RB
$/$
110/CD
million/CD
,/,
or/CC
almost/RB
double/RB
the/DT
market/NN
price/NN
of/IN
Gen-Probe/NNP
's/POS
stock/NN
./.
The/DT
move/NN
is/VBZ
sure/JJ
to/TO
heighten/VB
concerns/NNS
about/IN
increased/VBN
Japanese/JJ
investment/NN
in/IN
U.S./NNP
biotechnology/NN
firms/NNS
./.
It/PRP
is/VBZ
also/RB
likely/JJ
to/TO
bolster/VB
fears/NNS
that/IN
the/DT
Japanese/NNP
will/MD
use/VB
their/PRP$
foothold/NN
in/IN
U.S./NNP
biotechnology/NN
concerns/NNS
to/TO
gain/VB
certain/JJ
trade/NN
and/CC
competitive/JJ
advantages/NNS
./.
Gen-Probe/NNP
,/,
an/DT
industry/NN
leader/NN
in/IN
the/DT
field/NN
of/IN
genetic/JJ
probes/NNS
,/,
which/WDT
is/VBZ
a/DT
new/JJ
technology/NN
used/VBN
in/IN
diagnostic/JJ
tests/NNS
,/,
last/JJ
year/NN
signed/VBD
an/DT
agreement/NN
for/IN
Chugai/NNP
to/TO
exclusively/RB
market/VB
its/PRP$
diagnostic/JJ
products/NNS
in/IN
Japan/NNP
for/IN
infectious/JJ
diseases/NNS
and/CC
cancer/NN
./.
Chugai/NNP
agreed/VBD
then/RB
to/TO
fund/VB
certain/JJ
associated/VBN
research/NN
and/CC
development/NN
costs/NNS
./.
That/DT
arrangement/NN
apparently/RB
has/VBZ
worked/VBN
well/RB
,/,
and/CC
Thomas/NNP
A./NNP
Bologna/NNP
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
Gen-Probe/NNP
,/,
founded/VBN
in/IN
1983/CD
,/,
said/VBD
the/DT
sale/NN
of/IN
the/DT
company/NN
means/VBZ
``/``
we/PRP
will/MD
be/VB
able/JJ
to/TO
concentrate/VB
on/IN
running/VBG
the/DT
business/NN
rather/RB
than/IN
always/RB
looking/VBG
for/IN
sources/NNS
of/IN
financing/NN
./.
''/''
Chugai/NNP
agreed/VBD
to/TO
pay/VB
$/$
6.25/CD
a/DT
share/NN
for/IN
Gen-Probe/NNP
's/POS
17.6/CD
million/CD
common/JJ
shares/NNS
outstanding/JJ
on/IN
a/DT
fully/RB
diluted/VBN
basis/NN
./.
Yesterday/NN
,/,
in/IN
national/JJ
trading/NN
in/IN
the/DT
over-the-counter/JJ
market/NN
,/,
Gen-Probe/NNP
common/NN
closed/VBD
at/IN
$/$
3.25/CD
a/DT
share/NN
./.
Because/IN
the/DT
U.S./NNP
leads/VBZ
in/IN
most/JJS
areas/NNS
of/IN
biotechnology/NN
--/:
largely/RB
because/IN
of/IN
research/NN
investment/NN
by/IN
the/DT
U.S./NNP
government/NN
--/:
the/DT
sale/NN
is/VBZ
sure/JJ
to/TO
increase/VB
concerns/NNS
that/IN
Japanese/JJ
companies/NNS
will/MD
buy/VB
American/NNP
know-how/NN
and/CC
use/VB
it/PRP
to/TO
obtain/VB
the/DT
upper/JJ
hand/NN
in/IN
biotechnology/NN
trade/NN
and/CC
competition/NN
./.
``/``
The/DT
biotechnology/NN
firms/NNS
may/MD
be/VB
setting/VBG
up/RP
their/PRP$
own/JJ
competitors/NNS
,/,
''/''
said/VBD
Richard/NNP
Godown/NNP
,/,
president/NN
of/IN
the/DT
Industrial/NNP
Biotechnology/NNP
Association/NNP
./.
He/PRP
added/VBD
that/IN
until/IN
now/RB
the/DT
Japanese/NNS
have/VBP
only/RB
acquired/VBN
equity/NN
positions/NNS
in/IN
U.S./NNP
biotechnology/NN
companies/NNS
./.
``/``
They/PRP
are/VBP
piggybacking/VBG
onto/IN
developed/VBN
technology/NN
,/,
''/''
he/PRP
said/VBD
./.
During/IN
the/DT
past/JJ
five/CD
years/NNS
,/,
Japanese/JJ
concerns/NNS
have/VBP
invested/VBN
in/IN
several/JJ
of/IN
the/DT
U.S./NNP
's/POS
431/CD
independent/JJ
biotechnology/NN
companies/NNS
./.
Chugai/NNP
has/VBZ
been/VBN
one/CD
of/IN
the/DT
most/RBS
active/JJ
Japanese/JJ
players/NNS
in/IN
U.S./NNP
biotechnology/NN
companies/NNS
;/:
it/PRP
has/VBZ
an/DT
equity/NN
investment/NN
in/IN
Genetics/NNP
Institute/NNP
Inc./NNP
,/,
Cambridge/NNP
,/,
Mass./NNP
,/,
and/CC
a/DT
joint-venture/JJ
agreement/NN
with/IN
Upjohn/NNP
Co./NNP
,/,
Kalamazoo/NNP
,/,
Mich/NNP
./.
The/DT
Japanese/JJ
government/NN
,/,
Mr./NNP
Godown/NNP
said/VBD
,/,
has/VBZ
stated/VBN
that/IN
it/PRP
wants/VBZ
10/CD
%/NN
to/TO
11/CD
%/NN
of/IN
its/PRP$
gross/JJ
national/JJ
product/NN
to/TO
come/VB
from/IN
biotechnology/NN
products/NNS
./.
``/``
It/PRP
is/VBZ
becoming/VBG
more/JJR
of/IN
a/DT
horse/NN
race/NN
every/DT
day/NN
between/IN
the/DT
U.S./NNP
and/CC
Japan/NNP
,/,
''/''
he/PRP
said/VBD
,/,
adding/VBG
that/IN
some/DT
fear/VBP
that/IN
as/IN
with/IN
the/DT
semiconductor/NN
,/,
electronics/NNS
,/,
and/CC
automobile/NN
industries/NNS
,/,
Japanese/JJ
companies/NNS
will/MD
use/VB
U.S.-developed/JJ
technology/NN
to/TO
gain/VB
trade/NN
advantages/NNS
./.
Mr./NNP
Bologna/NNP
said/VBD
the/DT
sale/NN
would/MD
allow/VB
Gen-Probe/NNP
to/TO
speed/VB
up/RP
the/DT
development/NN
of/IN
new/JJ
technology/NN
,/,
and/CC
to/TO
more/RBR
quickly/RB
apply/VB
existing/VBG
technology/NN
to/TO
an/DT
array/NN
of/IN
diagnostic/JJ
products/NNS
the/DT
company/NN
wants/VBZ
to/TO
offer/VB
./.
By/IN
1988/CD
,/,
when/WRB
only/RB
10/CD
genetic/JJ
probe-based/JJ
tests/NNS
of/IN
diagnostic/JJ
infectious/JJ
diseases/NNS
of/IN
humans/NNS
had/VBD
been/VBN
approved/VBN
for/IN
marketing/VBG
by/IN
the/DT
Food/NNP
and/CC
Drug/NNP
Administration/NNP
,/,
eight/CD
of/IN
them/PRP
had/VBD
been/VBN
developed/VBN
and/CC
sold/VBN
by/IN
Gen-Probe/NNP
./.
Osamu/NNP
Nagayama/NNP
,/,
deputy/NN
president/NN
of/IN
Chugai/NNP
,/,
which/WDT
spends/VBZ
about/RB
15/CD
%/NN
of/IN
its/PRP$
sales/NNS
on/IN
research/NN
and/CC
development/NN
,/,
was/VBD
unable/JJ
to/TO
pinpoint/VB
how/WRB
much/JJ
money/NN
Chugai/NNP
would/MD
pump/VB
into/IN
Gen-Probe/NNP
./.
``/``
We/PRP
think/VBP
Gen-Probe/NNP
has/VBZ
technology/NN
important/JJ
to/TO
people/NNS
's/POS
health/NN
,/,
''/''
he/PRP
said/VBD
,/,
adding/VBG
:/:
``/``
We/PRP
think/VBP
it/PRP
is/VBZ
important/JJ
for/IN
us/PRP
to/TO
have/VB
such/JJ
technology/NN
./.
''/''
He/PRP
and/CC
Mr./NNP
Bologna/NNP
emphasized/VBD
that/IN
both/DT
companies/NNS
would/MD
gain/VB
technological/JJ
knowledge/NN
through/IN
the/DT
sale/NN
of/IN
Gen-Probe/NNP
,/,
which/WDT
will/MD
expand/VB
``/``
significantly/RB
''/''
as/IN
a/DT
result/NN
of/IN
the/DT
acquisition/NN
./.
In/IN
1988/CD
,/,
Chugai/NNP
had/VBD
net/JJ
income/NN
of/IN
$/$
60/CD
million/CD
on/IN
revenue/NN
of/IN
$/$
991/CD
million/CD
./.
GenProbe/NN
had/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
9.5/CD
million/CD
on/IN
revenue/NN
of/IN
$/$
5.8/CD
million/CD
./.
Recently/RB
,/,
Gen-Probe/NNP
received/VBD
a/DT
broad/JJ
U.S./NNP
patent/NN
for/IN
a/DT
technology/NN
that/WDT
helps/VBZ
detect/VB
,/,
identify/VB
and/CC
quantify/VB
non-viral/JJ
organisms/NNS
through/IN
the/DT
targeting/VBG
of/IN
a/DT
form/NN
of/IN
genetic/JJ
material/NN
called/VBN
ribosomal/JJ
RNA/NNP
./.
Among/IN
other/JJ
things/NNS
,/,
Mr./NNP
Bologna/NNP
said/VBD
that/IN
the/DT
sale/NN
will/MD
facilitate/VB
Gen-Probe/NNP
's/POS
marketing/NN
of/IN
a/DT
diagnostic/JJ
test/NN
for/IN
acquired/VBN
immune/JJ
deficiency/NN
syndrome/NN
,/,
or/CC
AIDS/NNP
./.
Chugai/NNP
also/RB
will/MD
help/VB
Gen-Probe/NNP
with/IN
its/PRP$
regulatory/JJ
and/CC
marketing/NN
expertise/NN
in/IN
Asia/NNP
,/,
Mr./NNP
Bologna/NNP
said/VBD
./.
The/DT
tender/NN
offer/NN
for/IN
Gen-Probe/NNP
's/POS
shares/NNS
is/VBZ
expected/VBN
to/TO
begin/VB
next/JJ
Monday/NNP
,/,
the/DT
company/NN
said/VBD
./.
It/PRP
was/VBD
supposed/VBN
to/TO
be/VB
a/DT
routine/JJ
courtesy/NN
call/NN
./.
A/DT
half-dozen/JJ
Soviet/JJ
space/NN
officials/NNS
,/,
in/IN
Tokyo/NNP
in/IN
July/NNP
for/IN
an/DT
exhibit/NN
,/,
stopped/VBD
by/RP
to/TO
see/VB
their/PRP$
counterparts/NNS
at/IN
the/DT
National/NNP
Space/NNP
Development/NNP
Agency/NNP
of/IN
Japan/NNP
./.
But/CC
after/IN
a/DT
few/JJ
pleasantries/NNS
,/,
the/DT
Soviets/NNS
unexpectedly/RB
got/VBD
serious/JJ
./.
The/DT
Soviets/NNS
have/VBP
a/DT
world-leading/JJ
space/NN
program/NN
,/,
the/DT
guests/NNS
noted/VBD
./.
Would/MD
n't/RB
the/DT
Japanese/NNS
like/VB
a/DT
piece/NN
of/IN
it/PRP
?/.
The/DT
visitors/NNS
then/RB
listed/VBD
technologies/NNS
up/IN
for/IN
sale/NN
,/,
including/VBG
launch/NN
services/NNS
and/CC
propulsion/NN
hardware/NN
./.
``/``
We/PRP
were/VBD
just/RB
surprised/VBN
,/,
''/''
says/VBZ
Tad/NNP
Inada/NNP
,/,
NASDA/NNP
's/POS
director/NN
for/IN
international/JJ
affairs/NNS
./.
``/``
Shocked/VBN
./.
''/''
That/IN
Moscow/NNP
,/,
with/IN
its/PRP$
dilapidated/JJ
economic/JJ
machine/NN
,/,
would/MD
try/VB
to/TO
sell/VB
high/JJ
technology/NN
to/TO
Japan/NNP
,/,
one/CD
of/IN
the/DT
world/NN
's/POS
high-tech/NN
leaders/NNS
,/,
sounds/VBZ
like/IN
a/DT
coals-to-Newcastle/JJ
notion/NN
./.
But/CC
``/``
the/DT
Soviet/NNP
Union/NNP
has/VBZ
areas/NNS
where/WRB
it/PRP
is/VBZ
n't/RB
behind/IN
Japan/NNP
,/,
''/''
says/VBZ
Mikhail/NNP
Shapovalov/NNP
of/IN
the/DT
Soviet/NNP
Ministry/NNP
of/IN
Foreign/NNP
Economic/NNP
Relations/NNP
./.
``/``
We/PRP
have/VBP
obtained/VBN
through/IN
the/DT
development/NN
of/IN
Cosmos/NNP
the/DT
Soviet/JJ
space/NN
program/NN
technologies/NNS
you/PRP
do/VBP
n't/RB
see/VB
anywhere/RB
else/RB
./.
''/''
The/DT
sales/NNS
pitch/NN
might/MD
n't/RB
be/VB
as/RB
farfetched/JJ
as/IN
it/PRP
seems/VBZ
./.
Japan-U.S./JJ
trade/NN
relations/NNS
are/VBP
bumpy/JJ
these/DT
days/NNS
,/,
and/CC
some/DT
Japanese/NNS
favor/VBP
decreasing/VBG
their/PRP$
reliance/NN
on/IN
U.S./NNP
technology/NN
in/IN
light/NN
of/IN
the/DT
FSX/NNP
fighter-plane/NN
flap/NN
,/,
when/WRB
U.S./NNP
officials/NNS
reversed/VBD
an/DT
earlier/JJR
decision/NN
and/CC
refused/VBD
to/TO
share/VB
certain/JJ
crucial/JJ
fighter-plane/NN
technology/NN
./.
And/CC
,/,
despite/IN
its/PRP$
image/NN
as/IN
a/DT
technology/NN
superpower/NN
,/,
Japan/NNP
has/VBZ
a/DT
lot/NN
of/IN
weaknesses/NNS
./.
It/PRP
's/VBZ
a/DT
world/NN
leader/NN
in/IN
semiconductors/NNS
,/,
but/CC
behind/RB
the/DT
U.S./NNP
in/IN
making/VBG
the/DT
computers/NNS
that/WDT
use/VBP
those/DT
chips/NNS
./.
It/PRP
's/VBZ
a/DT
world/NN
leader/NN
in/IN
auto/NN
manufacturing/NN
,/,
but/CC
its/PRP$
aviation/NN
industry/NN
is/VBZ
struggling/VBG
,/,
and/CC
its/PRP$
space/NN
program/NN
is/VBZ
years/NNS
behind/IN
the/DT
U.S./NNP
,/,
the/DT
Europeans/NNS
and/CC
the/DT
Soviets/NNS
./.
One/CD
question/NN
being/VBG
debated/VBN
in/IN
the/DT
Soviet/NNP
Union/NNP
is/VBZ
how/WRB
to/TO
use/VB
the/DT
defense/NN
sector/NN
's/POS
research-and-production/JJ
expertise/NN
in/IN
the/DT
rest/NN
of/IN
the/DT
economy/NN
./.
Many/JJ
plants/NNS
that/WDT
used/VBD
to/TO
make/VB
military/JJ
equipment/NN
are/VBP
now/RB
being/VBG
ordered/VBN
to/TO
produce/VB
televisions/NNS
,/,
videocassette/NN
recorders/NNS
,/,
small/JJ
tractors/NNS
and/CC
food-processing/JJ
machinery/NN
./.
The/DT
Soviets/NNS
also/RB
hope/VBP
to/TO
make/VB
better/JJR
use/NN
of/IN
their/PRP$
considerable/JJ
expertise/NN
in/IN
theoretical/JJ
science/NN
,/,
which/WDT
has/VBZ
helped/VBN
them/PRP
win/VB
twice/RB
as/RB
many/JJ
Nobel/NNP
science/NN
prizes/NNS
as/IN
the/DT
Japanese/NNS
./.
Where/WRB
they/PRP
lag/VBP
behind/IN
the/DT
Japanese/NNS
is/VBZ
in/IN
turning/VBG
the/DT
scientific/JJ
inventiveness/NN
into/IN
improved/VBN
production/NN
./.
By/IN
contrast/NN
,/,
the/DT
Japanese/NNS
have/VBP
proved/VBN
adept/JJ
at/IN
making/VBG
use/NN
of/IN
Soviet/JJ
inventions/NNS
./.
Kobe/NNP
Steel/NNP
Ltd./NNP
adopted/VBD
Soviet/JJ
casting/VBG
technology/NN
in/IN
1966/CD
and/CC
used/VBD
it/PRP
for/IN
14/CD
years/NNS
until/IN
it/PRP
developed/VBD
its/PRP$
own/JJ
system/NN
./.
Kawasaki/NNP
Steel/NNP
Corp./NNP
bought/VBD
a/DT
Soviet/JJ
steel-casting/JJ
patent/NN
two/CD
years/NNS
ago/RB
and/CC
has/VBZ
jointly/RB
developed/VBN
the/DT
system/NN
with/IN
the/DT
Soviets/NNS
./.
In/IN
1991/CD
,/,
the/DT
Soviets/NNS
will/MD
take/VB
a/DT
Japanese/JJ
journalist/NN
into/IN
space/NN
,/,
the/DT
first/JJ
Japanese/NN
to/TO
go/VB
into/IN
orbit/NN
./.
Soviet/JJ
efforts/NNS
to/TO
sell/VB
their/PRP$
technology/NN
abroad/RB
do/VBP
n't/RB
appear/VB
to/TO
worry/VB
the/DT
U.S./NNP
,/,
Japan/NNP
's/POS
principal/JJ
ally/NN
./.
``/``
We/PRP
have/VBP
never/RB
opposed/VBN
the/DT
development/NN
of/IN
economic/JJ
relations/NNS
between/IN
our/PRP$
allies/NNS
and/CC
the/DT
Soviet/NNP
Union/NNP
,/,
''/''
says/VBZ
a/DT
State/NNP
Department/NNP
official/NN
./.
``/``
Frankly/NNP
,/,
I/PRP
would/MD
n't/RB
expect/VB
the/DT
Japanese/NNP
to/TO
get/VB
hooked/JJ
on/IN
anybody/NN
's/POS
technology/NN
,/,
least/JJS
of/IN
all/DT
the/DT
Soviets/NNP
./.
''/''
Under/IN
Mikhail/NNP
Gorbachev/NNP
's/POS
perestroika/NN
,/,
the/DT
Soviets/NNS
have/VBP
sought/VBN
economic/JJ
ties/NNS
all/DT
over/IN
the/DT
world/NN
,/,
including/VBG
new/JJ
export/NN
markets/NNS
./.
They/PRP
believe/VBP
technology/NN
is/VBZ
one/CD
of/IN
their/PRP$
best/JJS
bets/NNS
,/,
and/CC
some/DT
Soviet/JJ
officials/NNS
say/VBP
Moscow/NNP
will/MD
even/RB
consider/VB
declassifying/VBG
military/JJ
know-how/NN
if/IN
the/DT
price/NN
is/VBZ
right/JJ
./.
The/DT
Soviets/NNS
held/VBD
export/NN
exhibitions/NNS
that/WDT
included/VBD
high-tech/JJ
items/NNS
in/IN
New/NNP
York/NNP
and/CC
West/NNP
Germany/NNP
./.
Last/JJ
week/NN
,/,
a/DT
Soviet/JJ
delegation/NN
came/VBD
to/TO
Japan/NNP
to/TO
push/VB
more/JJR
space/NN
technologies/NNS
./.
Japan/NNP
is/VBZ
a/DT
major/JJ
target/NN
for/IN
the/DT
Soviets/NNS
./.
In/IN
August/NNP
,/,
representatives/NNS
of/IN
Keidanren/NNP
,/,
Japan/NNP
's/POS
largest/JJS
business/NN
organization/NN
,/,
visited/VBD
Moscow/NNP
to/TO
explore/VB
exports/NNS
and/CC
investments/NNS
that/WDT
would/MD
help/VB
the/DT
Soviet/JJ
economy/NN
./.
Out/IN
of/IN
the/DT
blue/NN
,/,
the/DT
Soviet/NNP
Chamber/NNP
of/IN
Commerce/NNP
handed/VBD
over/RP
details/NNS
on/IN
59/CD
technologies/NNS
that/IN
the/DT
Japanese/NNS
might/MD
want/VB
to/TO
buy/VB
./.
These/DT
mainly/RB
involved/VBD
such/JJ
areas/NNS
as/IN
materials/NNS
--/:
advanced/JJ
soldering/JJ
machines/NNS
,/,
for/IN
example/NN
--/:
and/CC
medical/JJ
developments/NNS
derived/VBN
from/IN
experimentation/NN
in/IN
space/NN
,/,
such/JJ
as/IN
artificial/JJ
blood/NN
vessels/NNS
./.
A/DT
main/JJ
motive/NN
is/VBZ
hard/JJ
cash/NN
./.
But/CC
,/,
while/IN
the/DT
Soviets/NNS
ca/MD
n't/RB
expect/VB
direct/JJ
technology/NN
flow/NN
from/IN
Japan/NNP
,/,
they/PRP
also/RB
hope/VBP
to/TO
benefit/VB
from/IN
Japanese/JJ
manufacturing/NN
expertise/NN
./.
``/``
The/DT
Soviet/NNP
Union/NNP
has/VBZ
a/DT
lot/NN
of/IN
know-how/NN
,/,
but/CC
it/PRP
has/VBZ
been/VBN
difficult/JJ
to/TO
put/VB
that/DT
into/IN
actual/JJ
production/NN
because/IN
of/IN
various/JJ
structural/JJ
problems/NNS
in/IN
the/DT
economy/NN
,/,
''/''
says/VBZ
Mr./NNP
Shapovalov/NNP
,/,
the/DT
Foreign/NNP
Ministry/NNP
official/NN
./.
The/DT
Soviets/NNS
are/VBP
``/``
contemplating/VBG
a/DT
flexible/JJ
system/NN
under/IN
which/WDT
it/PRP
would/MD
be/VB
possible/JJ
to/TO
develop/VB
{/(
technology/NN
it/PRP
jointly/RB
,/,
''/''
he/PRP
says/VBZ
./.
Even/RB
if/IN
the/DT
Japanese/NNS
find/VBP
Soviet/JJ
technology/NN
desirable/JJ
,/,
such/JJ
discussions/NNS
would/MD
be/VB
fraught/JJ
with/IN
political/JJ
complications/NNS
./.
Still/RB
stinging/VBG
from/IN
the/DT
international/JJ
backlash/NN
over/IN
the/DT
sale/NN
two/CD
years/NNS
ago/RB
of/IN
sensitive/JJ
military/JJ
technology/NN
to/TO
the/DT
Soviets/NNS
by/IN
a/DT
subsidiary/NN
of/IN
Japan/NNP
's/POS
Toshiba/NNP
Corp./NNP
,/,
many/JJ
Japanese/NNS
are/VBP
eager/JJ
to/TO
avoid/VB
appearing/VBG
to/TO
help/VB
the/DT
Soviets/NNS
in/IN
any/DT
way/NN
./.
Another/DT
hurdle/NN
concerns/VBZ
Japan/NNP
's/POS
attempts/NNS
to/TO
persuade/VB
the/DT
Soviet/NNP
Union/NNP
to/TO
relinquish/VB
its/PRP$
post-World/NNP

War/NNP
II/NNP
control/NN
of/IN
four/CD
islands/NNS
north/RB
of/IN
Japan/NNP
./.
So/IN
far/RB
,/,
the/DT
Soviets/NNS
have/VBP
provided/VBN
only/RB
the/DT
sketchiest/JJS
information/NN
about/IN
their/PRP$
technology/NN
and/CC
business/NN
plans/NNS
./.
And/CC
what/WP
they/PRP
have/VBP
shown/VBN
is/VBZ
n't/RB
impressive/JJ
./.
``/``
My/PRP$
impression/NN
is/VBZ
that/IN
there/EX
is/VBZ
n't/RB
anything/NN
which/WDT
arouses/VBZ
our/PRP$
interest/NN
at/IN
first/JJ
glance/NN
,/,
''/''
says/VBZ
an/DT
official/NN
from/IN
Japan/NNP
's/POS
Ministry/NNP
of/IN
International/NNP
Trade/NNP
and/CC
Industry/NNP
./.
Peter/NNP
Gumbel/NNP
in/IN
Moscow/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
its/PRP$
centennial/NN
year/NN
,/,
The/DT
Wall/NNP
Street/NNP
Journal/NNP
will/MD
report/VB
events/NNS
of/IN
the/DT
past/JJ
century/NN
that/WDT
stand/VBP
as/IN
milestones/NNS
of/IN
American/JJ
business/NN
history/NN
./.
MAY/NNP
1/CD
,/,
1975/CD
,/,
SIGNALED/VBN
A/DT
DISTRESSFUL/JJ
May/NNP
Day/NNP
for/IN
securities/NNS
houses/NNS
,/,
which/WDT
were/VBD
forced/VBN
to/TO
end/VB
183/CD
years/NNS
of/IN
charging/VBG
fixed/VBN
commissions/NNS
./.
It/PRP
scared/VBD
brokers/NNS
,/,
but/CC
most/JJS
survived/VBN
./.
It/PRP
took/VBD
effect/NN
after/IN
seven/CD
years/NNS
of/IN
bitter/JJ
debate/NN
between/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
and/CC
traders/NNS
and/CC
exchanges/NNS
./.
Despite/IN
warnings/NNS
from/IN
such/JJ
leaders/NNS
as/IN
former/JJ
Federal/NNP
Reserve/NNP
Board/NNP
Chairman/NNP
William/NNP
McChesney/NNP
Martin/NNP
that/IN
unfixed/JJ
commissions/NNS
would/MD
undo/VB
the/DT
industry/NN
,/,
the/DT
SEC/NNP
in/IN
September/NNP
1973/CD
said/VBD
full/JJ
competition/NN
must/MD
start/VB
May/NNP
l/NN
,/,
1975/CD
./.
The/DT
timing/NN
for/IN
change/NN
was/VBD
right/JJ
./.
Institutions/NNS
had/VBD
become/VBN
active/JJ
market/NN
players/NNS
in/IN
the/DT
early/JJ
1970s/CD
and/CC
sought/VBD
exchange/NN
seats/NNS
to/TO
handle/VB
their/PRP$
own/JJ
trades/NNS
./.
And/CC
the/DT
industry/NN
was/VBD
rife/JJ
with/IN
brokers/NNS
trying/VBG
to/TO
secure/VB
big/JJ
client/NN
orders/NNS
by/IN
using/VBG
kickbacks/NNS
,/,
gifts/NNS
,/,
women/NNS
and/CC
junkets/NNS
./.
Within/IN
three/CD
weeks/NNS
of/IN
the/DT
1975/CD
end/NN
to/TO
fixed/VBN
rates/NNS
there/EX
were/VBD
all-out/JJ
price/NN
wars/NNS
among/IN
brokers/NNS
fighting/VBG
for/IN
institutional/JJ
business/NN
,/,
with/IN
rate/NN
slashes/NNS
of/IN
35/CD
%/NN
to/TO
60/CD
%/NN
below/IN
pre-May/JJ

1/CD
levels/NNS
./.
Ray/NNP
Garrett/NNP
Jr./NNP
,/,
SEC/NNP
chairman/NN
,/,
said/VBD
the/DT
``/``
breadth/NN
and/CC
depth/NN
of/IN
the/DT
discounting/NN
is/VBZ
more/JJR
than/IN
I/PRP
expected/VBD
./.
''/''
Even/RB
a/DT
federal/JJ
measure/NN
in/IN
June/NNP
allowing/VBG
houses/NNS
to/TO
add/VB
research/NN
fees/NNS
to/TO
their/PRP$
commissions/NNS
did/VBD
n't/RB
stop/VB
it/PRP
./.
Longer/JJR
term/NN
,/,
the/DT
impact/NN
is/VBZ
unclear/JJ
./.
The/DT
change/NN
prompted/VBD
the/DT
rise/NN
of/IN
discount/NN
brokers/NNS
and/CC
a/DT
reduction/NN
in/IN
securities/NNS
research/NN
firms/NNS
./.
But/CC
there/EX
are/VBP
currently/RB
more/JJR
exchange/NN
members/NNS
than/IN
in/IN
1975/CD
,/,
with/IN
the/DT
bigger/JJR
houses/NNS
gaining/VBG
a/DT
larger/JJR
share/NN
of/IN
total/JJ
commissions/NNS
./.
Commissions/NNS
,/,
however/RB
,/,
account/VBP
for/IN
a/DT
smaller/JJR
share/NN
of/IN
investment-house/NN
business/NN
as/IN
takeover/NN
advisory/NN
fees/NNS
have/VBP
soared/VBN
./.
Foreign/JJ
stock/NN
markets/NNS
,/,
with/IN
which/WDT
the/DT
U.S./NNP
is/VBZ
entwined/VBN
,/,
also/RB
have/VBP
ended/VBN
fixed/VBN
commissions/NNS
in/IN
recent/JJ
years/NNS
./.
It/PRP
came/VBD
in/IN
London/NNP
's/POS
``/``
Big/NNP
Bang/NNP
''/''
1986/CD
deregulation/NN
;/:
and/CC
Toronto/NNP
's/POS
``/``
Little/NNP
Bang/NNP
''/''
the/DT
same/JJ
year/NN
./.
Paris/NNP
is/VBZ
currently/RB
phasing/VBG
out/RP
fixed/VBN
commissions/NNS
under/IN
its/PRP$
``/``
Le/NNP
Petit/NNP
Bang/NNP
''/''
plan/NN
./.
President/NNP
Bush/NNP
said/VBD
that/IN
three/CD
members/NNS
of/IN
his/PRP$
cabinet/NN
will/MD
lead/VB
a/DT
presidential/JJ
mission/NN
to/TO
Poland/NNP
to/TO
gauge/VB
how/WRB
the/DT
U.S./NNP
can/MD
help/VB
the/DT
new/JJ
non-Communist/JJ
government/NN
's/POS
economic/JJ
changes/NNS
./.
Mr./NNP
Bush/NNP
announced/VBD
several/JJ
weeks/NNS
ago/RB
that/IN
he/PRP
intended/VBD
to/TO
send/VB
such/JJ
a/DT
mission/NN
,/,
composed/VBN
of/IN
top/JJ
government/NN
aides/NNS
and/CC
business/NN
and/CC
labor/NN
leaders/NNS
./.
The/DT
mission/NN
will/MD
visit/VB
Poland/NNP
from/IN
Nov./NNP
29/CD
to/TO
Dec./NNP
2/CD
,/,
the/DT
White/NNP
House/NNP
said/VBD
./.
In/IN
remarks/NNS
at/IN
a/DT
White/NNP
House/NNP
ceremony/NN
marking/VBG
Polish/NNP
Heritage/NNP
Month/NNP
,/,
Mr./NNP
Bush/NNP
announced/VBD
that/IN
Agriculture/NNP
Secretary/NNP
Clayton/NNP
Yeutter/NNP
,/,
Commerce/NNP
Secretary/NNP
Robert/NNP
Mosbacher/NNP
and/CC
Labor/NNP
Secretary/NNP
Elizabeth/NNP
Dole/NNP
will/MD
lead/VB
the/DT
U.S./NNP
group/NN
./.
Michael/NNP
Boskin/NNP
,/,
chairman/NN
of/IN
the/DT
Council/NNP
of/IN
Economic/NNP
Advisers/NNP
,/,
also/RB
will/MD
be/VB
a/DT
member/NN
./.
In/IN
addition/NN
,/,
the/DT
White/NNP
House/NNP
said/VBD
that/IN
Charles/NNP
Harper/NNP
,/,
chairman/NN
of/IN
ConAgra/NNP
Inc./NNP
,/,
and/CC
John/NNP
McGillicuddy/NNP
,/,
chairman/NN
of/IN
Manufacturers/NNP
Hanover/NNP
Corp./NNP
,/,
will/MD
be/VB
among/IN
a/DT
group/NN
of/IN
at/IN
least/JJS
15/CD
business/NN
and/CC
labor/NN
representatives/NNS
in/IN
the/DT
presidential/JJ
mission/NN
./.
Mr./NNP
Bush/NNP
said/VBD
the/DT
group/NN
is/VBZ
to/TO
``/``
focus/VB
on/IN
economic/JJ
sectors/NNS
where/WRB
U.S./NNP
expertise/NN
and/CC
cooperation/NN
can/MD
indeed/RB
make/VB
a/DT
difference/NN
./.
''/''
Mr./NNP
Bush/NNP
has/VBZ
asked/VBN
Congress/NNP
to/TO
provide/VB
more/JJR
than/IN
$/$
400/CD
million/CD
in/IN
economic/JJ
aid/NN
and/CC
food/NN
grants/NNS
for/IN
Poland/NNP
's/POS
new/JJ
government/NN
,/,
but/CC
has/VBZ
been/VBN
chided/VBN
by/IN
Democrats/NNS
for/IN
failing/VBG
to/TO
do/VB
more/JJR
./.
Warner/NNP
Communications/NNP
Inc./NNP
is/VBZ
close/JJ
to/TO
an/DT
agreement/NN
to/TO
back/VB
a/DT
new/JJ
recorded/VBN
music/NN
and/CC
music/NN
publishing/NN
company/NN
in/IN
partnership/NN
with/IN
Irving/NNP
Azoff/NNP
,/,
who/WP
resigned/VBD
in/IN
September/NNP
as/IN
head/NN
of/IN
MCA/NNP
Inc./NNP
's/POS
MCA/NNP
Records/NNP
unit/NN
./.
Warner/NNP
and/CC
Mr./NNP
Azoff/NNP
declined/VBD
comment/NN
,/,
as/IN
did/VBD
MCA/NNP
,/,
where/WRB
Mr./NNP
Azoff/NNP
had/VBD
also/RB
been/VBN
discussing/VBG
such/JJ
a/DT
venture/NN
./.
But/CC
record/NN
industry/NN
executives/NNS
familiar/JJ
with/IN
the/DT
talks/NNS
said/VBD
Mr./NNP
Azoff/NNP
and/CC
Warner/NNP
came/VBD
to/TO
an/DT
agreement/NN
yesterday/NN
to/TO
form/VB
a/DT
50-50/JJ
joint-venture/NN
company/NN
funded/VBN
by/IN
Warner/NNP
and/CC
run/VBN
by/IN
Mr./NNP
Azoff/NNP
./.
Among/IN
other/JJ
things/NNS
,/,
they/PRP
said/VBD
,/,
Mr./NNP
Azoff/NNP
would/MD
develop/VB
musical/JJ
acts/NNS
for/IN
a/DT
new/JJ
record/NN
label/NN
./.
The/DT
agreement/NN
is/VBZ
said/VBD
to/TO
be/VB
similar/JJ
to/TO
Warner/NNP
's/POS
50-50/JJ
partnership/NN
with/IN
record/NN
and/CC
movie/NN
producer/NN
David/NNP
Geffen/NNP
,/,
whose/WP$
films/NNS
and/CC
records/NNS
are/VBP
distributed/VBN
by/IN
the/DT
Warner/NNP
Bros./NNP
studio/NN
and/CC
the/DT
Warner/NNP
records/NNS
unit/NN
./.
Although/IN
Mr./NNP
Azoff/NNP
wo/MD
n't/RB
produce/VB
films/NNS
at/IN
first/JJ
,/,
it/PRP
is/VBZ
possible/JJ
that/IN
he/PRP
could/MD
do/VB
so/RB
later/RB
,/,
the/DT
sources/NNS
said/VBD
./.
Like/IN
Mr./NNP
Geffen/NNP
's/POS
arrangement/NN
,/,
the/DT
venture/NN
gives/VBZ
Mr./NNP
Azoff/NNP
a/DT
link/NN
to/TO
the/DT
world/NN
's/POS
largest/JJS
and/CC
most/RBS
successful/JJ
record/NN
distributor/NN
;/:
in/IN
the/DT
U.S./NNP
alone/RB
,/,
Warner/NNP
has/VBZ
a/DT
40/CD
%/NN
share/NN
of/IN
the/DT
market/NN
,/,
about/RB
double/JJ
its/PRP$
nearest/JJS
competitor/NN
,/,
Sony/NNP
Corp./NNP
's/POS
CBS/NNP
Records/NNP
./.
For/IN
Warner/NNP
,/,
meanwhile/RB
,/,
it/PRP
gives/VBZ
the/DT
company/NN
a/DT
second/JJ
young/JJ
partner/NN
with/IN
a/DT
finger/NN
on/IN
the/DT
pulse/NN
of/IN
the/DT
hottest/JJS
trends/NNS
in/IN
the/DT
music/NN
business/NN
./.
The/DT
41-year-old/CD
Mr./NNP
Azoff/NNP
,/,
a/DT
former/JJ
rock/NN
'n'/CC
roll/NN
manager/NN
,/,
is/VBZ
credited/VBN
with/IN
turning/VBG
around/RP
MCA/NNP
's/POS
once-moribund/JJ
music/NN
division/NN
in/IN
his/PRP$
six/CD
years/NNS
at/IN
the/DT
company/NN
./.
But/CC
Mr./NNP
Azoff/NNP
had/VBD
been/VBN
negotiating/VBG
for/IN
more/JJR
than/IN
a/DT
year/NN
to/TO
get/VB
out/IN
of/IN
his/PRP$
MCA/NNP
contract/NN
,/,
which/WDT
expired/VBD
in/IN
1991/CD
./.
Mr./NNP
Azoff/NNP
reportedly/RB
was/VBD
bored/VBN
and/CC
frequently/RB
clashed/VBN
with/IN
top/JJ
MCA/NNP
management/NN
over/IN
a/DT
number/NN
of/IN
issues/NNS
such/JJ
as/IN
compensation/NN
and/CC
business/NN
plans/NNS
./.
Mr./NNP
Azoff/NNP
also/RB
was/VBD
eager/JJ
to/TO
return/VB
to/TO
a/DT
more/RBR
entrepreneurial/JJ
role/NN
in/IN
which/WDT
he/PRP
had/VBD
a/DT
big/JJ
financial/JJ
stake/NN
in/IN
his/PRP$
own/JJ
efforts/NNS
./.
In/IN
an/DT
interview/NN
at/IN
the/DT
time/NN
of/IN
his/PRP$
resignation/NN
from/IN
MCA/NNP
,/,
he/PRP
said/VBD
:/:
``/``
I/PRP
'd/MD
rather/RB
build/VB
a/DT
company/NN
than/IN
run/VB
one/CD
./.
''/''
Part/NN
of/IN
a/DT
Series/NN
Tom/NNP
Panelli/NNP
had/VBD
a/DT
perfectly/RB
good/JJ
reason/NN
for/IN
not/RB
using/VBG
the/DT
$/$
300/CD
rowing/NN
machine/NN
he/PRP
bought/VBD
three/CD
years/NNS
ago/RB
./.
``/``
I/PRP
ate/VBD
a/DT
bad/JJ
tuna/NN
sandwich/NN
,/,
got/VBD
food/NN
poisoning/NN
and/CC
had/VBD
to/TO
have/VB
a/DT
shot/NN
in/IN
my/PRP$
shoulder/NN
,/,
''/''
he/PRP
says/VBZ
,/,
making/VBG
it/PRP
too/RB
painful/JJ
to/TO
row/VB
./.
The/DT
soreness/NN
,/,
he/PRP
admits/VBZ
,/,
went/VBD
away/RB
about/RB
a/DT
week/NN
after/IN
the/DT
shot/NN
./.
Yet/CC
the/DT
rowing/NN
machine/NN
has/VBZ
n't/RB
been/VBN
touched/VBN
since/IN
,/,
even/RB
though/IN
he/PRP
has/VBZ
moved/VBN
it/PRP
across/IN
the/DT
country/NN
with/IN
him/PRP
twice/RB
./.
A/DT
San/NNP
Francisco/NNP
lawyer/NN
,/,
Mr./NNP
Panelli/NNP
rowed/VBD
religiously/RB
when/WRB
he/PRP
first/RB
got/VBD
the/DT
machine/NN
,/,
but/CC
,/,
he/PRP
complains/VBZ
,/,
it/PRP
left/VBD
grease/NN
marks/NNS
on/IN
his/PRP$
carpet/NN
,/,
``/``
and/CC
it/PRP
was/VBD
boring/VBG
./.
It/PRP
's/VBZ
a/DT
horrible/JJ
machine/NN
,/,
actually/RB
./.
I/PRP
'm/VBP
ashamed/JJ
I/PRP
own/VBP
the/DT
stupid/JJ
thing/NN
./.
''/''
Mr./NNP
Panelli/NNP
has/VBZ
plenty/NN
of/IN
company/NN
./.
Nearly/RB
three-fourths/JJ
of/IN
the/DT
people/NNS
who/WP
own/VBP
home/NN
exercise/NN
equipment/NN
do/VBP
n't/RB
use/VB
it/PRP
as/RB
much/RB
as/IN
they/PRP
planned/VBD
,/,
according/VBG
to/TO
The/DT
Wall/NNP
Street/NNP
Journal/NNP
's/POS
``/``
American/NNP
Way/NNP
of/IN
Buying/NNP
''/''
survey/NN
./.
The/DT
Roper/NNP
Organization/NNP
,/,
which/WDT
conducted/VBD
the/DT
survey/NN
,/,
said/VBD
almost/RB
half/NN
of/IN
the/DT
exercise/NN
equipment/NN
owners/NNS
found/VBD
it/PRP
duller/RBR
than/IN
they/PRP
expected/VBD
./.
It/PRP
is/VBZ
n't/RB
just/RB
exercise/NN
gear/NN
that/WDT
is/VBZ
n't/RB
getting/VBG
a/DT
good/JJ
workout/NN
./.
The/DT
fitness/NN
craze/NN
itself/PRP
has/VBZ
gone/VBN
soft/JJ
,/,
the/DT
survey/NN
found/VBD
./.
Fewer/JJR
people/NNS
said/VBD
they/PRP
were/VBD
working/VBG
up/RP
a/DT
sweat/NN
with/IN
such/JJ
activities/NNS
as/IN
jogging/NN
,/,
tennis/NN
,/,
swimming/NN
and/CC
aerobics/NN
./.
Half/NN
of/IN
those/DT
surveyed/VBN
said/VBD
they/PRP
simply/RB
walk/VB
these/DT
days/NNS
for/IN
exercise/NN
./.
That/IN
's/POS
good/JJ
news/NN
for/IN
marketers/NNS
of/IN
walking/NN
shoes/NNS
./.
The/DT
survey/NN
also/RB
detected/VBD
a/DT
bit/NN
more/JJR
interest/NN
in/IN
golf/NN
,/,
a/DT
positive/JJ
sign/NN
for/IN
country/NN
clubs/NNS
and/CC
golf/NN
club/NN
makers/NNS
./.
The/DT
survey/NN
's/POS
findings/NNS
certainly/RB
are/VBP
n't/RB
encouraging/JJ
for/IN
marketers/NNS
of/IN
health-club/JJ
memberships/NNS
,/,
tennis/NN
rackets/NNS
and/CC
home/NN
exercise/NN
equipment/NN
,/,
but/CC
people/NNS
's/POS
good/JJ
intentions/NNS
,/,
if/IN
not/RB
their/PRP$
actions/NNS
,/,
are/VBP
keeping/VBG
sales/NNS
of/IN
some/DT
fitness/NN
products/NNS
healthy/JJ
./.
For/IN
instance/NN
,/,
sales/NNS
of/IN
treadmills/NNS
,/,
exercise/NN
bikes/NNS
,/,
stair/NN
climbers/NNS
and/CC
the/DT
like/JJ
are/VBP
expected/VBN
to/TO
rise/VB
8/CD
%/NN
to/TO
about/RB
$/$
1.52/CD
billion/CD
this/DT
year/NN
,/,
according/VBG
to/TO
the/DT
National/NNP
Sporting/NNP
Goods/NNP
Association/NNP
,/,
which/WDT
sees/VBZ
the/DT
home/NN
market/NN
as/IN
one/CD
of/IN
the/DT
hottest/JJS
growth/NN
areas/NNS
for/IN
the/DT
1990s/CD
./.
But/CC
even/RB
that/DT
group/NN
knows/VBZ
some/DT
people/NNS
do/VBP
n't/RB
use/VB
their/PRP$
machines/NNS
as/RB
much/RB
as/IN
they/PRP
should/MD
./.
``/``
The/DT
first/JJ
excuse/NN
is/VBZ
they/PRP
do/VBP
n't/RB
have/VB
enough/JJ
time/NN
,/,
''/''
says/VBZ
research/NN
director/NN
Thomas/NNP
Doyle/NNP
./.
``/``
The/DT
second/NN
is/VBZ
they/PRP
do/VBP
n't/RB
have/VB
enough/JJ
discipline/NN
./.
''/''
With/IN
more/RBR
than/IN
15/CD
million/CD
exercise/NN
bikes/NNS
sold/VBN
in/IN
the/DT
past/JJ
five/CD
years/NNS
,/,
he/PRP
adds/VBZ
,/,
``/``
a/DT
lot/NN
of/IN
garages/NNS
,/,
basements/NNS
and/CC
attics/NNS
must/MD
be/VB
populated/VBN
with/IN
them/PRP
./.
''/''
Still/RB
,/,
the/DT
average/JJ
price/NN
of/IN
such/JJ
bikes/NNS
rose/VBD
last/JJ
year/NN
to/TO
$/$
145/CD
./.
Mr./NNP
Doyle/NNP
predicts/VBZ
a/DT
trend/NN
toward/IN
fewer/JJR
pieces/NNS
of/IN
home/NN
exercise/NN
equipment/NN
being/VBG
sold/VBN
at/IN
higher/JJR
prices/NNS
./.
Electronic/JJ
gimmicks/NNS
are/VBP
key/JJ
./.
Premark/NNP
International/NNP
Inc./NNP
,/,
for/IN
example/NN
,/,
peddles/VBZ
the/DT
M8.7sp/NNP
Electronic/NNP
Cycling/NNP
Simulator/NNP
,/,
a/DT
$/$
2,000/CD
stationary/JJ
cycle/NN
./.
On/IN
a/DT
video/NN
screen/NN
,/,
riders/NNS
can/MD
see/VB
30/CD
different/JJ
``/``
rides/NNS
,/,
''/''
including/VBG
urban/JJ
,/,
mountain/NN
and/CC
desert/NN
scenes/NNS
,/,
and/CC
check/VB
how/WRB
many/JJ
calories/NNS
are/VBP
burned/VBN
a/DT
minute/NN
./.
Nancy/NNP
Igdaloff/NNP
,/,
who/WP
works/VBZ
in/IN
corporate/JJ
payments/NNS
at/IN
Bank/NNP
of/IN
America/NNP
in/IN
San/NNP
Francisco/NNP
,/,
may/MD
be/VB
a/DT
good/JJ
prospect/NN
for/IN
such/JJ
a/DT
gizmo/NN
./.
She/PRP
's/VBZ
trying/VBG
to/TO
sell/VB
a/DT
$/$
150/CD
exercise/NN
bike/NN
she/PRP
bought/VBD
about/RB
five/CD
years/NNS
ago/RB
for/IN
her/PRP$
roommate/NN
./.
But/CC
rather/RB
than/IN
write/VB
off/RP
home/NN
fitness/NN
equipment/NN
,/,
she/PRP
traded/VBD
up/RB
:/:
Ms./NNP
Igdaloff/NNP
just/RB
paid/VBD
about/RB
$/$
900/CD
for/IN
a/DT
fancier/JJR
stationary/JJ
bike/NN
,/,
with/IN
a/DT
timer/NN
,/,
dials/NNS
showing/VBG
average/JJ
and/CC
maximum/NN
speeds/NNS
and/CC
a/DT
comfortable/JJ
seat/NN
that/WDT
feels/VBZ
almost/RB
like/IN
a/DT
chair/NN
./.
``/``
I/PRP
'm/VBP
using/VBG
it/PRP
a/DT
lot/NN
,/,
''/''
she/PRP
says/VBZ
./.
``/``
I/PRP
spent/VBD
so/RB
much/JJ
money/NN
that/IN
if/IN
I/PRP
look/VBP
at/IN
it/PRP
,/,
and/CC
I/PRP
'm/VBP
not/RB
on/IN
it/PRP
,/,
I/PRP
feel/VBP
guilty/JJ
./.
''/''
The/DT
poll/NN
points/VBZ
up/RP
some/DT
inconsistencies/NNS
between/IN
what/WDT
people/NNS
say/VBP
and/CC
what/WP
they/PRP
do/VBP
./.
A/DT
surprising/JJ
78/CD
%/NN
of/IN
people/NNS
said/VBD
they/PRP
exercise/VBP
regularly/RB
,/,
up/RB
from/IN
73/CD
%/NN
in/IN
1981/CD
./.
This/DT
conjures/VBZ
up/RP
images/NNS
of/IN
a/DT
nation/NN
full/JJ
of/IN
trim/JJ
,/,
muscular/JJ
folks/NNS
,/,
and/CC
suggests/VBZ
couch/NN
potatoes/NNS
are/VBP
out/IN
of/IN
season/NN
./.
Of/IN
course/NN
,/,
that/WDT
is/VBZ
n't/RB
really/RB
the/DT
case/NN
./.
The/DT
discrepancy/NN
may/MD
be/VB
because/RB
asking/VBG
people/NNS
about/IN
their/PRP$
fitness/NN
regime/NN
is/VBZ
a/DT
bit/NN
like/IN
inquiring/VBG
about/IN
their/PRP$
love/NN
life/NN
./.
They/PRP
're/VBP
bound/VBN
to/TO
exaggerate/VB
./.
``/``
People/NNS
say/VBP
they/PRP
swim/VBP
,/,
and/CC
that/DT
may/MD
mean/VB
they/PRP
've/VBP
been/VBN
to/TO
the/DT
beach/NN
this/DT
year/NN
,/,
''/''
says/VBZ
Krys/NNP
Spain/NNP
,/,
research/NN
specialist/NN
for/IN
the/DT
President/NNP
's/POS
Council/NNP
on/IN
Physical/NNP
Fitness/NNP
and/CC
Sports/NNP
./.
``/``
It/PRP
's/VBZ
hard/JJ
to/TO
know/VB
if/IN
people/NNS
are/VBP
responding/VBG
truthfully/RB
./.
People/NNS
are/VBP
too/RB
embarrassed/VBN
to/TO
say/VB
they/PRP
have/VBP
n't/RB
done/VBN
anything/NN
./.
''/''
While/IN
she/PRP
applauds/VBZ
the/DT
fact/NN
that/IN
more/JJR
Americans/NNS
are/VBP
getting/VBG
up/RP
from/IN
the/DT
television/NN
to/TO
stroll/VB
or/CC
garden/VB
,/,
she/PRP
says/VBZ
the/DT
percentage/NN
of/IN
Americans/NNS
who/WP
do/VBP
``/``
real/JJ
exercise/NN
to/TO
build/VB
the/DT
heart/NN
''/''
is/VBZ
only/RB
10/CD
%/NN
to/TO
20/CD
%/NN
./.
So/RB
many/JJ
people/NNS
fudge/VBP
on/IN
answers/NNS
about/IN
exercise/NN
,/,
the/DT
president/NNP
's/POS
council/NN
now/RB
uses/VBZ
specific/JJ
criteria/NNS
to/TO
determine/VB
what/WP
is/VBZ
considered/VBN
vigorous/JJ
:/:
It/PRP
must/MD
produce/VB
contractions/NNS
of/IN
large/JJ
muscle/NN
groups/NNS
,/,
must/MD
achieve/VB
60/CD
%/NN
of/IN
maximum/NN
aerobic/JJ
capacity/NN
and/CC
must/MD
be/VB
done/VBN
three/CD
or/CC
more/JJR
times/NNS
a/DT
week/NN
for/IN
a/DT
minimum/NN
of/IN
20/CD
minutes/NNS
./.
One/CD
of/IN
the/DT
council/NN
's/POS
goals/NNS
,/,
set/VBN
in/IN
1980/CD
,/,
was/VBD
to/TO
see/VB
more/JJR
than/IN
60/CD
%/NN
of/IN
adults/NNS
under/IN
65/CD
years/NNS
of/IN
age/NN
getting/VBG
vigorous/JJ
exercise/NN
by/IN
1990/CD
./.
That/DT
target/NN
has/VBZ
been/VBN
revised/VBN
to/TO
30/CD
%/NN
by/IN
the/DT
year/NN
2000/CD
./.
But/CC
even/RB
that/DT
goal/NN
may/MD
prove/VB
optimistic/JJ
./.
Of/IN
14/CD
activities/NNS
,/,
the/DT
Journal/NNP
survey/NN
found/VBD
that/IN
12/CD
--/:
including/VBG
bicycling/NN
,/,
skiing/NN
and/CC
swimming/NN
--/:
are/VBP
being/VBG
done/VBN
by/IN
fewer/JJR
Americans/NNS
today/NN
than/IN
eight/CD
years/NNS
ago/RB
./.
Time/NN
pressures/NNS
and/CC
the/DT
ebb/NN
of/IN
the/DT
fitness/NN
fad/NN
are/VBP
cited/VBN
as/IN
reasons/NNS
for/IN
the/DT
decline/NN
./.
Only/RB
walking/NN
and/CC
golf/NN
increased/VBD
in/IN
popularity/NN
during/IN
the/DT
1980s/CD
--/:
and/CC
only/RB
slightly/RB
./.
Jeanette/NNP
Traverso/NNP
,/,
a/DT
California/NNP
lawyer/NN
,/,
gave/VBD
up/RP
running/NN
three/CD
times/NNS
a/DT
week/NN
to/TO
play/VB
a/DT
weekly/JJ
round/NN
of/IN
golf/NN
,/,
finding/VBG
it/PRP
more/RBR
social/JJ
and/CC
serene/JJ
./.
It/PRP
's/VBZ
an/DT
activity/NN
she/PRP
feels/VBZ
she/PRP
can/MD
do/VB
for/IN
life/NN
,/,
and/CC
by/IN
pulling/VBG
a/DT
golf/NN
cart/NN
,/,
she/PRP
still/RB
gets/VBZ
a/DT
good/JJ
workout/NN
./.
``/``
I/PRP
'm/VBP
really/RB
wiped/VBN
out/RP
after/IN
walking/VBG
five/CD
hours/NNS
,/,
''/''
she/PRP
says/VBZ
./.
Most/JJS
people/NNS
said/VBD
they/PRP
exercise/VBP
both/DT
for/IN
health/NN
and/CC
enjoyment/NN
./.
``/``
If/IN
you/PRP
sit/VBP
down/RP
all/DT
the/DT
time/NN
,/,
you/PRP
'll/MD
go/VB
stiff/JJ
,/,
''/''
says/VBZ
Joyce/NNP
Hagood/NNP
,/,
a/DT
Roxboro/NNP
,/,
N.C./NNP
,/,
homemaker/NN
who/WP
walks/VBZ
several/JJ
miles/NNS
a/DT
week/NN
./.
``/``
And/CC
it/PRP
's/VBZ
relaxing/JJ
./.
Sometimes/RB
,/,
if/IN
you/PRP
have/VBP
a/DT
headache/NN
,/,
you/PRP
can/MD
go/VB
out/RB
and/CC
walk/VB
it/PRP
right/RB
off/RP
./.
''/''
Only/RB
about/RB
a/DT
quarter/NN
of/IN
the/DT
respondents/NNS
said/VBD
they/PRP
exercise/VBP
to/TO
lose/VB
weight/NN
./.
Slightly/RB
more/RBR
,/,
like/IN
Leslie/NNP
Sherren/NNP
,/,
a/DT
law/NN
librarian/NN
in/IN
San/NNP
Francisco/NNP
who/WP
attends/VBZ
dance/NN
aerobics/NN
five/CD
times/NNS
a/DT
week/NN
,/,
exercise/VBP
to/TO
relieve/VB
stress/NN
./.
``/``
Working/VBG
with/IN
lawyers/NNS
,/,
''/''
she/PRP
says/VBZ
,/,
``/``
I/PRP
need/VBP
it/PRP
./.
''/''
But/CC
fully/RB
90/CD
%/NN
of/IN
those/DT
polled/VBN
felt/VBD
they/PRP
did/VBD
n't/RB
need/VB
to/TO
belong/VB
to/TO
a/DT
health/NN
club/NN
./.
``/``
They/PRP
're/VBP
too/RB
crowded/VBN
,/,
and/CC
everybody/NN
's/VBZ
showing/VBG
off/RP
,/,
''/''
says/VBZ
Joel/NNP
Bryant/NNP
,/,
a/DT
22-year-old/JJ
student/NN
from/IN
Pasadena/NNP
,/,
Calif/NNP
./.
``/``
The/DT
guys/NNS
are/VBP
being/VBG
macho/JJ
,/,
and/CC
the/DT
girls/NNS
are/VBP
walking/VBG
around/RP
in/IN
little/JJ
things/NNS
./.
They/PRP
're/VBP
not/RB
there/RB
to/TO
work/VB
out/RP
./.
''/''
But/CC
at/IN
least/JJS
they/PRP
show/VBP
up/RP
./.
Nearly/RB
half/NN
of/IN
those/DT
who/WP
joined/VBD
health/NN
clubs/NNS
said/VBD
they/PRP
did/VBD
n't/RB
use/VB
their/PRP$
membership/NN
as/RB
often/RB
as/IN
they/PRP
planned/VBD
./.
Feeling/VBG
they/PRP
should/MD
devote/VB
more/JJR
time/NN
to/TO
their/PRP$
families/NNS
or/CC
their/PRP$
jobs/NNS
,/,
many/JJ
yuppies/NNS
are/VBP
skipping/VBG
their/PRP$
once-sacred/JJ
workout/NN
./.
Even/RB
so/RB
,/,
the/DT
Association/NNP
of/IN
Quality/NNP
Clubs/NNP
,/,
a/DT
health-club/JJ
trade/NN
group/NN
in/IN
Boston/NNP
,/,
says/VBZ
membership/NN
revenues/NNS
will/MD
rise/VB
about/RB
5/CD
%/NN
this/DT
year/NN
from/IN
last/JJ
year/NN
's/POS
$/$
5/CD
billion/CD
./.
A/DT
spokeswoman/NN
adds/VBZ
,/,
however/RB
,/,
that/IN
the/DT
group/NN
is/VBZ
considering/VBG
offering/VBG
``/``
a/DT
behavior-modification/NN
course/NN
,/,
similar/JJ
to/TO
a/DT
smoking-cessation/NN
program/NN
,/,
to/TO
teach/VB
people/NNS
ways/NNS
to/TO
stay/VB
with/IN
it/PRP
./.
''/''
There/EX
are/VBP
die-hard/JJ
bodies/NNS
,/,
of/IN
course/NN
./.
The/DT
proprietor/NN
of/IN
Sante/NNP
West/NNP
,/,
an/DT
aerobics/NN
studio/NN
in/IN
San/NNP
Francisco/NNP
's/POS
Marina/NNP
district/NN
,/,
which/WDT
was/VBD
hit/VBN
hard/JJ
by/IN
the/DT
earthquake/NN
,/,
says/VBZ
,/,
``/``
People/NNS
were/VBD
going/VBG
nuts/NNS
the/DT
minute/NN
we/PRP
opened/VBD
,/,
''/''
three/CD
days/NNS
after/IN
the/DT
quake/NN
./.
``/``
The/DT
emotional/JJ
aspect/NN
is/VBZ
so/RB
draining/VBG
,/,
they/PRP
needed/VBD
a/DT
good/JJ
workout/NN
./.
''/''
Perhaps/RB
the/DT
most/RBS
disturbing/JJ
finding/NN
is/VBZ
that/IN
the/DT
bowling/NN
alley/NN
may/MD
be/VB
an/DT
endangered/VBN
American/JJ
institution/NN
./.
The/DT
survey/NN
reported/VBD
the/DT
number/NN
of/IN
people/NNS
who/WP
said/VBD
they/PRP
bowl/VBP
regularly/RB
has/VBZ
fallen/VBN
to/TO
just/RB
8/CD
%/NN
from/IN
17/CD
%/NN
in/IN
1981/CD
./.
The/DT
American/JJ
Bowling/NNP
Congress/NNP
claims/VBZ
a/DT
higher/JJR
percentage/NN
of/IN
the/DT
public/JJ
bowls/VBZ
regularly/RB
,/,
but/CC
concedes/VBZ
its/PRP$
membership/NN
has/VBZ
declined/VBN
this/DT
decade/NN
./.
To/TO
find/VB
out/RP
why/WRB
,/,
the/DT
group/NN
recently/RB
commissioned/VBD
a/DT
study/NN
of/IN
the/DT
past/JJ
20/CD
years/NNS
of/IN
bowling-related/JJ
research/NN
./.
Three/CD
reasons/NNS
were/VBD
pinpointed/VBN
:/:
a/DT
preference/NN
for/IN
watching/VBG
bowling/NN
and/CC
other/JJ
sports/NNS
on/IN
television/NN
rather/RB
than/IN
actually/RB
bowling/VBG
,/,
dowdy/JJ
bowling/NN
centers/NNS
,/,
and/CC
dissatisfaction/NN
with/IN
bowling/VBG
itself/PRP
./.
People/NNS
who/WP
start/VBP
bowling/NN
expecting/VBG
it/PRP
to/TO
be/VB
a/DT
pleasurable/JJ
exercise/NN
``/``
have/VBP
been/VBN
generally/RB
disappointed/VBN
,/,
''/''
the/DT
report/NN
said/VBD
./.
But/CC
not/RB
Richard/NNP
Cottrell/NNP
,/,
a/DT
San/NNP
Francisco/NNP
cab/NN
driver/NN
who/WP
bowls/VBZ
in/IN
two/CD
weekly/JJ
leagues/NNS
./.
He/PRP
hit/VBD
the/DT
lanes/NNS
three/CD
years/NNS
ago/RB
on/IN
the/DT
advice/NN
of/IN
his/PRP$
doctor/NN
./.
``/``
It/PRP
's/VBZ
good/JJ
exercise/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
I/PRP
ca/MD
n't/RB
do/VB
anything/NN
score-wise/JJ
,/,
but/CC
I/PRP
like/VBP
meeting/VBG
the/DT
girls/NNS
./.
''/''
He/PRP
says/VBZ
bowling/NN
helps/VBZ
him/PRP
shed/VB
pounds/NNS
,/,
though/IN
that/DT
effort/NN
is/VBZ
sometimes/RB
thwarted/VBN
by/IN
the/DT
fact/NN
that/IN
``/``
when/WRB
I/PRP
'm/VBP
drinking/VBG
,/,
I/PRP
bowl/VBP
better/RB
./.
''/''
His/PRP$
Tuesday/NNP
night/NN
team/NN
,/,
the/DT
Leftovers/NNP
,/,
is/VBZ
in/IN
first/JJ
place/NN
./.
WPP/NNP
GROUP/NNP
'S/POS
Ogilvy/NNP
&/CC
Mather/NNP
expects/VBZ
profit/NN
margins/NNS
to/TO
improve/VB
to/TO
11.5/CD
%/NN
in/IN
1990/CD
in/IN
the/DT
U.S./NNP
Yesterday/NN
's/POS
edition/NN
did/VBD
n't/RB
specify/VB
where/WRB
the/DT
improvement/NN
would/MD
take/VB
place/NN
./.
Marketing/NNP
&/CC
Media/NNP
--/:
Advertising/NNP
:/:
Ogilvy/NNP
Chairman-Elect/NNP
Phillips/NNP
Sees/NNP
Better/NNP
Profit/NNP
Margins/NNP
Ahead/NNP
''/''
--/:
WSJ/NNP
Oct./NNP
30/CD
,/,
1989/CD
)/)
Concerning/VBG
your/PRP$
Sept./NNP
29/CD
article/NN
``/``
Retailers/NNP
Face/NNP
Cutbacks/NNP
,/,
Uncertain/NNP
Future/NNP
''/''
:/:
The/DT
outcome/NN
of/IN
our/PRP$
leveraged/VBN
buyout/NN
is/VBZ
looking/VBG
very/RB
positive/JJ
./.
Unlike/IN
most/JJS
of/IN
the/DT
other/JJ
retailers/NNS
mentioned/VBN
in/IN
the/DT
story/NN
,/,
Jos./NNP
A./NNP
Bank/NNP
Clothiers/NNP
Inc./NNP
is/VBZ
not/RB
in/IN
serious/JJ
financial/JJ
problems/NNS
./.
We/PRP
did/VBD
experience/VB
some/DT
difficulties/NNS
with/IN
the/DT
initial/JJ
LBO/NNP
terms/NNS
and/CC
,/,
as/IN
your/PRP$
article/NN
made/VBD
clear/JJ
,/,
successfully/RB
restructured/VBN
our/PRP$
debt/NN
earlier/RBR
this/DT
year/NN
,/,
something/NN
those/DT
other/JJ
retailers/NNS
have/VBP
yet/RB
to/TO
accomplish/VB
./.
Your/PRP$
were/VBD
on/IN
target/NN
regarding/VBG
industry/NN
problems/NNS
,/,
but/CC
wide/JJ
of/IN
the/DT
mark/NN
in/IN
portraying/VBG
the/DT
financial/JJ
health/NN
of/IN
this/DT
company/NN
./.
Chairman/NNP
and/CC
CEO/NNP
Jos./NNP
A./NNP
Bank/NNP
Clothiers/NNP
Inc./NNP
Owings/NNP
Mills/NNP
,/,
Md/NNP
./.
Private/JJ
housing/NN
starts/NNS
in/IN
Japan/NNP
were/VBD
unchanged/JJ
in/IN
September/NNP
from/IN
a/DT
year/NN
earlier/RB
at/IN
144,610/CD
units/NNS
,/,
the/DT
Construction/NNP
Ministry/NNP
said/VBD
./.
The/DT
flat/JJ
report/NN
followed/VBD
a/DT
four-month/JJ
string/NN
of/IN
declines/NNS
./.
The/DT
down/JJ
trend/NN
was/VBD
partly/RB
the/DT
result/NN
of/IN
tighter/JJR
credit/NN
sparked/VBN
by/IN
a/DT
discount/NN
rate/NN
increase/NN
by/IN
the/DT
Bank/NNP
of/IN
Japan/NNP
in/IN
May/NNP
./.
The/DT
central/JJ
bank/NN
also/RB
unexpectedly/RB
raised/VBD
the/DT
base/NN
rate/NN
by/IN
half/PDT
a/DT
percentage/NN
point/NN
to/TO
3.75/CD
%/NN
Oct./NNP
11/CD
as/IN
part/NN
of/IN
an/DT
inflation-fighting/JJ
move/NN
that/WDT
indirectly/RB
increases/VBZ
interest/NN
rates/NNS
charged/VBN
on/IN
new/JJ
home/NN
construction/NN
loans/NNS
./.
If/IN
there/EX
's/VBZ
somethin'/NN
strange/JJ
in/IN
your/PRP$
neighborhood/NN
.../:
If/IN
there/EX
's/VBZ
something/NN
'/''
weird/JJ
and/CC
it/PRP
do/VBP
n't/RB
look/VB
good/JJ
./.
Who/WP
ya/PRP
gon/VB
na/TO
call/VB
?/.
For/IN
starters/NNS
,/,
some/DT
people/NNS
call/VBP
Ed/NNP
and/CC
Lorraine/NNP
Warren/NNP
./.
When/WRB
it/PRP
comes/VBZ
to/TO
busting/VBG
ghosts/NNS
,/,
the/DT
Monroe/NNP
,/,
Conn./NNP
,/,
couple/NN
are/VBP
perfect/JJ
demons/NNS
./.
They/PRP
claim/VBP
to/TO
have/VB
busted/VBN
spirits/NNS
,/,
poltergeists/NNS
and/CC
other/JJ
spooks/NNS
in/IN
hundreds/NNS
of/IN
houses/NNS
around/IN
the/DT
country/NN
./.
They/PRP
say/VBP
they/PRP
now/RB
get/VBP
three/CD
or/CC
four/CD
``/``
legitimate/JJ
''/''
calls/VBZ
a/DT
week/NN
from/IN
people/NNS
harried/VBN
by/IN
haunts/NNS
./.
``/``
I/PRP
firmly/RB
believe/VBP
in/IN
angels/NNS
,/,
devils/NNS
and/CC
ghosts/NNS
,/,
''/''
says/VBZ
Mr./NNP
Warren/NNP
,/,
whose/WP$
business/NN
card/NN
identifies/VBZ
him/PRP
as/IN
a/DT
``/``
demonologist/NN
./.
''/''
If/IN
psychics/NNS
do/VBP
n't/RB
work/VB
,/,
but/CC
your/PRP$
house/NN
still/RB
seems/VBZ
haunted/VBN
,/,
you/PRP
can/MD
call/VB
any/DT
one/CD
of/IN
a/DT
swelling/VBG
band/NN
of/IN
skeptics/NNS
such/JJ
as/IN
Richard/NNP
Busch/NNP
./.
A/DT
professional/JJ
magician/NN
and/CC
musician/NN
,/,
he/PRP
heads/VBZ
the/DT
Pittsburgh/NNP
branch/NN
of/IN
the/DT
Committee/NNP
for/IN
the/DT
Scientific/NNP
Investigation/NNP
of/IN
the/DT
Paranormal/NNP
./.
Mr./NNP
Busch/NNP
says/VBZ
there/EX
is/VBZ
a/DT
scientific/JJ
explanation/NN
for/IN
all/DT
haunts/NNS
,/,
and/CC
he/PRP
can/MD
even/RB
tell/VB
you/PRP
how/WRB
to/TO
encourage/VB
the/DT
spirits/NNS
./.
``/``
All/DT
you/PRP
have/VBP
to/TO
do/VB
is/VBZ
eat/VB
a/DT
big/JJ
pizza/NN
,/,
and/CC
then/RB
go/VB
to/TO
bed/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
You/PRP
'll/MD
have/VB
weird/JJ
dreams/NNS
,/,
too/RB
./.
''/''
Either/CC
way/NN
,/,
the/DT
ghostbusting/NN
business/NN
is/VBZ
going/VBG
like/IN
gangbusters/NNS
./.
Tales/NNS
of/IN
haunts/NNS
and/CC
horrors/NNS
are/VBP
proliferating/VBG
beyond/IN
the/DT
nation/NN
's/POS
Elm/NNP
Streets/NNPS
and/CC
Amityvilles/NNPS
./.
``/``
I/PRP
get/VBP
calls/NNS
nearly/RB
every/DT
day/NN
from/IN
people/NNS
who/WP
have/VBP
ghosts/NNS
in/IN
their/PRP$
house/NN
,/,
''/''
says/VBZ
Raymond/NNP
Hyman/NNP
,/,
a/DT
skeptical/JJ
psychology/NN
professor/NN
at/IN
the/DT
University/NNP
of/IN
Oregon/NNP
./.
In/IN
a/DT
public/JJ
opinion/NN
poll/NN
published/VBN
in/IN
the/DT
October/NNP
issue/NN
of/IN
Parents/NNP
Magazine/NNP
,/,
a/DT
third/JJ
of/IN
those/DT
queried/VBN
said/VBD
they/PRP
believe/VBP
that/IN
ghosts/NNS
or/CC
spirits/NNS
make/VBP
themselves/PRP
known/VBN
to/TO
people/NNS
./.
``/``
The/DT
movies/NNS
,/,
the/DT
books/NNS
,/,
the/DT
tabloids/NNS
--/:
even/RB
Nancy/NNP
Reagan/NNP
is/VBZ
boosting/VBG
this/DT
stuff/NN
,/,
''/''
says/VBZ
Paul/NNP
Kurtz/NNP
,/,
a/DT
philosophy/NN
professor/NN
at/IN
the/DT
State/NNP
University/NNP
of/IN
New/NNP
York/NNP
at/IN
Buffalo/NNP
,/,
who/WP
heads/VBZ
the/DT
Committee/NNP
for/IN
the/DT
Scientific/NNP
Investigation/NNP
of/IN
the/DT
Paranormal/NNP
./.
The/DT
committee/NN
,/,
formed/VBN
in/IN
1967/CD
,/,
now/RB
has/VBZ
60/CD
chapters/NNS
around/IN
the/DT
world/NN
./.
The/DT
spirits/NNS
,/,
of/IN
course/NN
,/,
could/MD
hardly/RB
care/VB
less/RBR
whether/CC
people/NNS
do/VBP
or/CC
do/VBP
n't/RB
believe/VB
in/IN
them/PRP
./.
They/PRP
do/VBP
n't/RB
even/RB
give/VB
a/DT
nod/NN
to/TO
human/JJ
sensibilities/NNS
by/IN
celebrating/VBG
Halloween/NNP
./.
For/IN
the/DT
spooks/NNS
it/PRP
's/VBZ
just/RB
another/DT
day/NN
of/IN
ectoplasmic/JJ
business/NN
as/IN
usual/JJ
,/,
ghostbusters/NNS
say/VBP
;/:
the/DT
holiday/NN
seems/VBZ
to/TO
occasion/VB
no/DT
unusual/JJ
number/NN
of/IN
ghost/NN
reports/NNS
./.
One/CD
of/IN
the/DT
busiest/JJS
ghostbusters/NNS
is/VBZ
Robert/NNP
Baker/NNP
,/,
a/DT
68-year-old/JJ
semi-retired/JJ
University/NNP
of/IN
Kentucky/NNP
psychology/NN
professor/NN
whose/WP$
bushy/JJ
gray/JJ
eyebrows/NNS
arch/VBP
at/IN
the/DT
mere/JJ
mention/NN
of/IN
a/DT
ghost/NN
./.
Mr./NNP
Baker/NNP
says/VBZ
he/PRP
has/VBZ
personally/RB
bested/VBN
more/JJR
than/IN
50/CD
haunts/NNS
,/,
from/IN
aliens/NNS
to/TO
poltergeists/NNS
./.
Mr./NNP
Baker/NNP
heads/VBZ
the/DT
Kentucky/NNP
Association/NNP
of/IN
Science/NNP
Educators/NNP
and/CC
Skeptics/NNP
./.
Like/IN
Hollywood/NNP
's/POS
Ghostbusters/NNS
,/,
Kentucky/NNP
's/POS
stand/VBP
ready/JJ
to/TO
roll/VB
when/WRB
haunts/NNS
get/VBP
out/IN
of/IN
hand/NN
./.
But/CC
they/PRP
do/VBP
n't/RB
careen/VB
around/RP
in/IN
an/DT
old/JJ
Cadillac/NN
,/,
wear/VB
funny/JJ
suits/NNS
or/CC
blast/VB
away/RB
at/IN
slimy/JJ
spirits/NNS
./.
Mr./NNP
Baker/NNP
drives/VBZ
a/DT
1987/CD
Chevy/NNP
and/CC
usually/RB
wears/VBZ
a/DT
tweed/NN
jacket/NN
on/IN
his/PRP$
ghostbusting/NN
forays/NNS
./.
``/``
I/PRP
've/VBP
never/RB
met/VBN
a/DT
ghost/NN
that/WDT
could/MD
n't/RB
be/VB
explained/VBN
away/RB
by/IN
perfectly/RB
natural/JJ
means/NNS
,/,
''/''
he/PRP
says/VBZ
./.
When/WRB
a/DT
Louisville/NNP
woman/NN
complained/VBD
that/IN
a/DT
ghost/NN
was/VBD
haunting/VBG
her/PRP$
attic/NN
,/,
Mr./NNP
Baker/NNP
discovered/VBD
a/DT
rat/NN
dragging/VBG
a/DT
trap/NN
across/IN
the/DT
rafters/NNS
./.
A/DT
foul-smelling/JJ
demon/NN
supposedly/RB
plagued/VBD
a/DT
house/NN
in/IN
Mannington/NNP
,/,
Ky/NNP
./.
Mr./NNP
Baker/NNP
found/VBD
an/DT
opening/NN
under/IN
the/DT
house/NN
that/WDT
led/VBD
to/TO
a/DT
fume-filled/JJ
coal/NN
mine/NN
./.
When/WRB
the/DT
weather/NN
cools/VBZ
,/,
Mr./NNP
Baker/NNP
says/VBZ
,/,
hobos/NNS
often/RB
hole/VBP
up/RP
in/IN
abandoned/VBN
houses/NNS
./.
``/``
People/NNS
see/VBP
activity/NN
in/IN
there/RB
,/,
and/CC
the/DT
next/JJ
thing/NN
you/PRP
know/VBP
,/,
you/PRP
've/VBP
got/VBN
a/DT
haunting/NN
,/,
''/''
he/PRP
says/VBZ
./.
On/IN
a/DT
recent/JJ
afternoon/NN
,/,
Mr./NNP
Baker/NNP
and/CC
a/DT
reporter/NN
go/VBP
ghost-busting/NN
,/,
visiting/VBG
Kathleen/NNP
Stinnett/NNP
,/,
a/DT
Lexington/NNP
woman/NN
who/WP
has/VBZ
phoned/VBN
the/DT
University/NNP
of/IN
Kentucky/NNP
to/TO
report/VB
mysterious/JJ
happenings/NNS
in/IN
her/PRP$
house/NN
./.
Mrs./NNP
Stinnett/NNP
says/VBZ
she/PRP
never/RB
believed/VBD
in/IN
ghosts/NNS
before/RB
,/,
but/CC
lately/RB
her/PRP$
vacuum/NN
cleaner/NN
turned/VBD
itself/PRP
on/RP
,/,
a/DT
telephone/NN
flew/VBD
off/IN
its/PRP$
stand/NN
,/,
doors/NNS
slammed/VBD
inexplicably/RB
,/,
and/CC
she/PRP
heard/VBD
footsteps/NNS
in/IN
her/PRP$
empty/JJ
kitchen/NN
./.
``/``
I/PRP
was/VBD
doing/VBG
the/DT
laundry/NN
and/CC
nearly/RB
broke/VBD
my/PRP$
neck/NN
running/VBG
upstairs/NN
to/TO
see/VB
who/WP
was/VBD
there/RB
,/,
and/CC
it/PRP
was/VBD
nobody/NN
,/,
''/''
she/PRP
says/VBZ
,/,
eyes/NNS
wide/JJ
at/IN
the/DT
recollection/NN
./.
Mr./NNP
Baker/NNP
hears/VBZ
her/PRP
out/RP
,/,
pokes/VBZ
around/RP
a/DT
bit/NN
,/,
asks/VBZ
a/DT
few/JJ
questions/NNS
and/CC
proposes/VBZ
some/DT
explanations/NNS
./.
Of/IN
the/DT
self-starting/JJ
vacuum/NN
cleaner/JJR
,/,
he/PRP
says/VBZ
:/:
``/``
Could/MD
be/VB
Cuddles/NNP
,/,
{/(
Mrs./NNP
Stinnett/NNP
's/POS
dog/NN
''/''
The/DT
flying/VBG
telephone/NN
:/:
``/``
You/PRP
tangle/VBP
the/DT
base/NN
cord/NN
around/IN
a/DT
chair/NN
leg/NN
,/,
and/CC
the/DT
receiver/NN
does/VBZ
seem/VB
to/TO
fly/VB
off/RB
./.
''/''
The/DT
ghostly/JJ
footsteps/NNS
:/:
``/``
Interstate/NNP
64/CD
is/VBZ
a/DT
block/NN
away/RB
,/,
and/CC
heavy/JJ
traffic/NN
can/MD
sure/RB
set/VB
a/DT
house/NN
to/TO
vibrating/VBG
./.
''/''
``/``
I/PRP
'm/VBP
not/RB
sure/RB
he/PRP
's/POS
explained/VBD
everything/NN
,/,
''/''
Mrs./NNP
Stinnett/NNP
says/VBZ
grudgingly/RB
./.
``/``
There/EX
are/VBP
some/DT
things/NNS
that/WDT
have/VBP
gone/VBN
on/RP
here/RB
that/IN
nobody/NN
can/MD
explain/VB
,/,
''/''
she/PRP
says/VBZ
./.
Mr./NNP
Baker/NNP
promises/VBZ
to/TO
return/VB
if/IN
the/DT
haunting/NN
continues/VBZ
./.
For/IN
especially/RB
stubborn/JJ
haunts/NNS
,/,
Mr./NNP
Baker/NNP
carries/VBZ
a/DT
secret/JJ
weapon/NN
,/,
a/DT
vial/NN
of/IN
cornstarch/NN
./.
``/``
I/PRP
tell/VBP
people/NNS
it/PRP
's/VBZ
the/DT
groundup/JJ
bones/NNS
of/IN
saints/NNS
,/,
''/''
he/PRP
says/VBZ
./.
``/``
I/PRP
sprinkle/VBP
a/DT
little/JJ
around/RP
and/CC
tell/VBP
the/DT
demons/NNS
to/TO
leave/VB
./.
It/PRP
's/VBZ
reassuring/VBG
,/,
and/CC
it/PRP
usually/RB
works/VBZ
./.
''/''
Oregon/NNP
's/POS
Mr./NNP
Hyman/NNP
has/VBZ
investigated/VBN
claims/NNS
of/IN
flying/VBG
cats/NNS
,/,
apparitions/NNS
and/CC
bouncing/VBG
chandeliers/NNS
and/CC
has/VBZ
come/VBN
up/RP
with/IN
a/DT
plausible/JJ
explanation/NN
,/,
he/PRP
says/VBZ
,/,
for/IN
every/DT
one/CD
./.
``/``
Invariably/RB
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
eyewitnesses/NNS
are/VBP
untrustworthy/JJ
./.
''/''
Two/CD
years/NNS
ago/RB
,/,
a/DT
Canadian/JJ
reader/NN
bet/VBD
Omni/NNP
Magazine/NNP
$/$
1,000/CD
that/IN
it/PRP
could/MD
n't/RB
debunk/VB
the/DT
uncanny/JJ
goings-on/NNS
in/IN
``/``
the/DT
Oregon/NNP
Vortex/NNP
,/,
''/''
a/DT
former/JJ
Indian/JJ
burial/NN
ground/NN
in/IN
southern/JJ
Oregon/NNP
./.
To/TO
viewers/NNS
from/IN
a/DT
distance/NN
,/,
visitors/NNS
to/TO
the/DT
spot/NN
seemed/VBD
to/TO
shrink/VB
disproportionately/RB
,/,
relative/JJ
to/TO
the/DT
background/NN
./.
The/DT
magazine/NN
called/VBN
in/IN
Mr./NNP
Hyman/NNP
as/IN
a/DT
consultant/NN
./.
He/PRP
showed/VBD
up/RP
with/IN
a/DT
carpenter/NN
's/POS
level/NN
,/,
carefully/RB
measured/VBN
every/DT
surface/NN
and/CC
showed/VBD
how/WRB
the/DT
apparent/JJ
shrinkage/NN
was/VBD
caused/VBN
by/IN
the/DT
perspective/NN
./.
``/``
A/DT
very/RB
striking/JJ
illusion/NN
,/,
''/''
Mr./NNP
Hyman/NNP
says/VBZ
now/RB
,/,
his/PRP$
voice/NN
dripping/VBG
with/IN
skepticism/NN
,/,
``/``
but/CC
an/DT
illusion/NN
nevertheless/RB
./.
''/''
The/DT
Canadian/NN
wound/VBD
up/RP
writing/VBG
a/DT
check/NN
./.
The/DT
Rev./NNP
Alphonsus/NNP
Trabold/NNP
,/,
a/DT
theology/NN
professor/NN
and/CC
exorcism/NN
expert/NN
at/IN
St./NNP
Bonaventure/NNP
University/NNP
in/IN
Olean/NNP
,/,
N.Y./NNP
,/,
frequently/RB
is/VBZ
asked/VBN
to/TO
exorcise/VB
unruly/JJ
spirits/NNS
,/,
and/CC
he/PRP
often/RB
obliges/VBZ
./.
``/``
On/IN
certain/JJ
occasions/NNS
a/DT
spirit/NN
could/MD
be/VB
earthbound/JJ
and/CC
make/VB
itself/PRP
known/VBN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
It/PRP
happens/VBZ
./.
''/''
Father/NNP
Trabold/NNP
often/RB
uses/VBZ
what/WP
he/PRP
calls/VBZ
``/``
a/DT
therapeutic/JJ
exorcism/NN
''/''
:/:
a/DT
few/JJ
prayers/NNS
and/CC
an/DT
admonition/NN
to/TO
the/DT
spirit/NN
to/TO
leave/VB
./.
``/``
If/IN
the/DT
person/NN
believes/VBZ
there/EX
's/VBZ
an/DT
evil/JJ
spirit/NN
,/,
you/PRP
ask/VBP
it/PRP
to/TO
be/VB
gone/VBN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
The/DT
suggestion/NN
itself/PRP
may/MD
do/VB
the/DT
healing/NN
./.
''/''
But/CC
sometimes/RB
more/RBR
energetic/JJ
attacks/NNS
are/VBP
required/VBN
./.
To/TO
wrestle/VB
with/IN
a/DT
demon/NN
in/IN
a/DT
house/NN
owned/VBN
by/IN
a/DT
Litchfield/NNP
,/,
Conn./NNP
,/,
woman/NN
,/,
the/DT
Warrens/NNS
recently/RB
called/VBD
in/RP
an/DT
exorcist/NN
,/,
the/DT
Rev./NNP
Robert/NNP
McKenna/NNP
,/,
a/DT
dissident/JJ
clergyman/NN
who/WP
hews/VBZ
to/TO
the/DT
Catholic/NNP
Church/NNP
's/POS
old/JJ
Latin/NNP
liturgy/NN
./.
I/PRP
attend/VBP
,/,
and/CC
so/RB
does/VBZ
a/DT
television/NN
crew/NN
from/IN
New/NNP
York/NNP
City/NNP
./.
Mr./NNP
Warren/NNP
pronounces/VBZ
the/DT
Litchfield/NNP
case/NN
``/``
your/PRP$
typical/JJ
demonic/JJ
infestation/NN
./.
''/''
A/DT
Scottish/JJ
dwarf/NN
built/VBD
the/DT
small/JJ
red/JJ
house/NN
110/CD
years/NNS
ago/RB
and/CC
now/RB
his/PRP$
demonic/JJ
ghost/NN
haunts/VBZ
it/PRP
,/,
Mr./NNP
Warren/NNP
says/VBZ
./.
The/DT
owner/NN
,/,
who/WP
begs/VBZ
anonymity/NN
,/,
asserts/VBZ
that/IN
the/DT
dwarf/NN
,/,
appearing/VBG
as/IN
a/DT
dark/JJ
shadow/NN
,/,
has/VBZ
manhandled/VBN
her/PRP
,/,
tossing/VBG
her/PRP
around/IN
the/DT
living/NN
room/NN
and/CC
yanking/VBG
out/RP
a/DT
hank/NN
of/IN
hair/NN
./.
Two/CD
previous/JJ
exorcisms/NNS
have/VBP
failed/VBN
./.
``/``
This/DT
is/VBZ
a/DT
very/RB
tenacious/JJ
ghost/NN
,/,
''/''
Mr./NNP
Warren/NNP
says/VBZ
darkly/RB
./.
Father/NNP
McKenna/NNP
moves/VBZ
through/IN
the/DT
house/NN
praying/VBG
in/IN
Latin/NNP
,/,
urging/VBG
the/DT
demon/NN
to/TO
split/VB
./.
Suddenly/RB
the/DT
woman/NN
begins/VBZ
swaying/VBG
and/CC
then/RB
writhing/VBG
./.
``/``
She/PRP
's/VBZ
being/VBG
attacked/VBN
by/IN
the/DT
demon/NN
,/,
''/''
Mrs./NNP
Warren/NNP
stagewhispers/VBZ
as/IN
the/DT
priest/NN
sprinkles/VBZ
holy/JJ
water/NN
over/IN
the/DT
squirming/VBG
woman/NN
,/,
and/CC
the/DT
television/NN
camera/NN
grinds/VBZ
./.
A/DT
half-hour/NN
later/RB
,/,
the/DT
woman/NN
is/VBZ
smiling/VBG
and/CC
chatting/VBG
;/:
the/DT
demon/NN
seems/VBZ
to/TO
have/VB
gone/VBN
./.
But/CC
Mr./NNP
Warren/NNP
says/VBZ
the/DT
woman/NN
has/VBZ
``/``
psychic/JJ
burns/NNS
''/''
on/IN
her/PRP$
back/NN
from/IN
the/DT
confrontation/NN
./.
She/PRP
declines/VBZ
to/TO
show/VB
them/PRP
./.
``/``
This/DT
was/VBD
an/DT
invisible/JJ
,/,
powerful/JJ
force/NN
that/WDT
's/VBZ
almost/RB
impossible/JJ
for/IN
a/DT
layman/NN
to/TO
contemplate/VB
,/,
''/''
Mr./NNP
Warren/NNP
says/VBZ
solemnly/RB
as/IN
the/DT
ghostbusting/NN
entourage/NN
packs/VBZ
up/RP
to/TO
leave/VB
./.
``/``
This/DT
time/NN
though/IN
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
I/PRP
think/VBP
we/PRP
got/VBD
it/PRP
./.
''/''
Lyrics/NNS
from/IN
``/``
Ghostbusters/NNP
''/''
by/IN
Ray/NNP
S./NNP
Parker/NNP
Jr./NNP
1984/CD
by/IN
Golden/NNP
Torch/NNP
Music/NNP
Corp./NNP
ASCAP/NNP
Raydiola/NNP
Music/NNP
ASCAP/NNP
All/DT
administrative/JJ
rights/NNS
for/IN
the/DT
U.S./NNP
jointly/RB
controlled/VBN
by/IN
both/DT
companies/NNS
./.
International/JJ
copyright/NN
secured/VBN
./.
Made/VBN
in/IN
USA/NNP
./.
All/DT
rights/NNS
Reserved/VBN
./.
Reprinted/VBN
by/IN
permission/NN
./.
BROKERAGE/NN
HIRING/NN
languishes/VBZ
amid/IN
market/NN
turmoil/NN
./.
But/CC
survivors/NNS
earn/VBP
more/JJR
./.
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
counts/VBZ
under/JJ
39,000/CD
workers/NNS
,/,
down/RB
100/CD
from/IN
the/DT
start/NN
of/IN
the/DT
year/NN
and/CC
off/IN
8,500/CD
from/IN
after/IN
its/PRP$
merger/NN
and/CC
the/DT
market/NN
collapse/NN
two/CD
years/NNS
ago/RB
./.
Another/DT
major/JJ
firm/NN
has/VBZ
cut/VBN
6,000/CD
workers/NNS
,/,
13/CD
%/NN
of/IN
its/PRP$
staff/NN
,/,
since/IN
Black/NNP
Monday/NNP
./.
The/DT
Bureau/NNP
of/IN
Labor/NNP
Statistics/NNP
says/VBZ
securities/NNS
firms/NNS
in/IN
New/NNP
York/NNP
City/NNP
alone/RB
have/VBP
slashed/VBN
17,000/CD
jobs/NNS
from/IN
the/DT
December/NNP
1987/CD
peak/NN
of/IN
163,000/CD
./.
Average/JJ
annual/JJ
earnings/NNS
of/IN
those/DT
who/WP
have/VBP
hung/VBN
on/RP
,/,
though/RB
,/,
surged/VBD
to/TO
$/$
78,625/CD
last/JJ
year/NN
from/IN
$/$
69,553/CD
in/IN
1987/CD
./.
Any/DT
hiring/VBG
is/VBZ
confined/VBN
to/TO
retail/JJ
sales/NNS
./.
Illinois/NNP
Company/NNP
Investments/NNP
had/VBD
been/VBN
trimming/VBG
its/PRP$
ranks/NNS
until/IN
last/JJ
summer/NN
./.
But/CC
then/RB
it/PRP
was/VBD
acquired/VBN
by/IN
Household/NNP
International/NNP
Inc/NNP
./.
Now/RB
it/PRP
offers/VBZ
richer/JJR
commissions/NNS
to/TO
lure/VB
a/DT
broker/NN
a/DT
week/NN
./.
Interstate\/Johnson/NNP
Lane/NNP
Inc./NNP
this/DT
year/NN
adds/VBZ
70/CD
people/NNS
--/:
60/CD
of/IN
them/PRP
in/IN
retail/NN
--/:
to/TO
its/PRP$
1,300-member/JJ
staff/NN
./.
A.G./NNP
Edwards/NNP
&/CC
Sons/NNP
runs/VBZ
training/NN
classes/NNS
and/CC
looks/VBZ
for/IN
experienced/JJ
brokers/NNS
./.
``/``
We/PRP
're/VBP
always/RB
going/VBG
to/TO
hire/VB
someone/NN
we/PRP
consider/VBP
to/TO
be/VB
a/DT
winner/NN
,/,
''/''
an/DT
Edwards/NNP
official/NN
says/VBZ
./.
SKILLED/JJ
WORKERS/NNS
aplenty/JJ
are/VBP
available/JJ
to/TO
cope/VB
with/IN
earthquake/NN
damage/NN
./.
``/``
I/PRP
do/VBP
n't/RB
foresee/VB
any/DT
shortages/NNS
over/IN
the/DT
next/JJ
few/JJ
months/NNS
,/,
''/''
says/VBZ
Ken/NNP
Allen/NNP
,/,
an/DT
official/NN
of/IN
Operating/NNP
Engineers/NNP
Local/NNP
3/CD
in/IN
San/NNP
Francisco/NNP
./.
Ironically/RB
,/,
``/``
up/IN
until/IN
the/DT
quake/NN
,/,
we/PRP
desperately/RB
tried/VBD
to/TO
fill/VB
jobs/NNS
,/,
''/''
especially/RB
for/IN
crane/NN
and/CC
bulldozer/NN
operators/NNS
./.
But/CC
the/DT
Oct./NNP
17/CD
temblor/NN
put/VBD
a/DT
halt/NN
to/TO
much/JJ
nonessential/JJ
building/NN
,/,
and/CC
heavy/JJ
rains/NNS
last/JJ
week/NN
slowed/VBD
the/DT
rest/NN
,/,
freeing/VBG
construction/NN
workers/NNS
for/IN
earthquake/NN
repairs/NNS
./.
The/DT
supply/NN
of/IN
experienced/VBN
civil/JJ
engineers/NNS
,/,
though/RB
,/,
is/VBZ
tighter/JJR
./.
In/IN
recent/JJ
months/NNS
,/,
California/NNP
's/POS
Transportation/NNP
Department/NNP
has/VBZ
been/VBN
recruiting/VBG
in/IN
Pennsylvania/NNP
,/,
Arizona/NNP
and/CC
Texas/NNP
for/IN
engineers/NNS
experienced/VBN
in/IN
road/NN
and/CC
bridge/NN
design/NN
./.
But/CC
,/,
with/IN
the/DT
state/NN
offering/VBG
only/RB
$/$
39,000/CD
a/DT
year/NN
and/CC
California/NNP
's/POS
high/JJ
standard/NN
of/IN
living/NN
,/,
``/``
there/EX
are/VBP
n't/RB
too/RB
many/JJ
to/TO
choose/VB
from/IN
,/,
''/''
says/VBZ
Brent/NNP
Scott/NNP
,/,
a/DT
recruiting/NN
officer/NN
./.
He/PRP
says/VBZ
the/DT
department/NN
now/RB
has/VBZ
75/CD
openings/NNS
and/CC
wants/VBZ
to/TO
hire/VB
625/CD
civil/JJ
engineers/NNS
over/IN
the/DT
next/JJ
15/CD
months/NNS
./.
THE/DT
IRS/NNP
may/MD
taketh/VB
what/WP
the/DT
Labor/NNP
Department/NNP
giveth/VBZ
./.
But/CC
stay/VB
tuned/VBN
./.
Employee-benefit/JJ
specialists/NNS
drew/VBD
a/DT
collective/JJ
sigh/NN
of/IN
relief/NN
in/IN
early/JJ
October/NNP
when/WRB
the/DT
Labor/NNP
Department/NNP
backed/VBD
away/RB
from/IN
a/DT
proposal/NN
that/IN
companies/NNS
let/VB
former/JJ
employees/NNS
and/CC
beneficiaries/NNS
--/:
along/IN
with/IN
active/JJ
workers/NNS
--/:
borrow/VB
against/IN
balances/NNS
in/IN
401/CD
k/NN
similar/JJ
savings/NNS
plans/NNS
./.
In/IN
an/DT
advisory/JJ
letter/NN
,/,
the/DT
department/NN
said/VBD
that/IN
,/,
starting/VBG
Oct./NNP
18/CD
,/,
loans/NNS
could/MD
be/VB
limited/VBN
to/TO
``/``
parties/NNS
in/IN
interest/NN
,/,
''/''
which/WDT
generally/RB
means/VBZ
active/JJ
workers/NNS
but/CC
also/RB
includes/VBZ
retirees/NNS
who/WP
continue/VBP
as/IN
directors/NNS
and/CC
10/CD
%/NN
shareholders/NNS
./.
Now/RB
comes/VBZ
word/NN
that/IN
IRS/NNP
regulations/NNS
being/VBG
drafted/VBN
could/MD
put/VB
companies/NNS
in/IN
violation/NN
of/IN
the/DT
tax/NN
code/NN
if/IN
they/PRP
make/VBP
loans/NNS
to/TO
retiree/NN
shareholders/NNS
and/CC
directors/NNS
but/CC
do/VBP
n't/RB
make/VB
them/PRP
available/JJ
to/TO
other/JJ
former/JJ
workers/NNS
who/WP
usually/RB
earned/VBD
less/JJR
./.
The/DT
IRS/NNP
says/VBZ
the/DT
question/NN
wo/MD
n't/RB
be/VB
settled/VBN
until/IN
the/DT
regulations/NNS
are/VBP
issued/VBN
``/``
shortly/RB
./.
''/''
But/CC
violation/NN
could/MD
bring/VB
substantial/JJ
tax/NN
penalties/NNS
to/TO
both/DT
employer/NN
and/CC
employees/NNS
./.
``/``
It/PRP
's/VBZ
a/DT
severe/JJ
case/NN
of/IN
regulatory/JJ
whiplash/NN
,/,
''/''
complains/VBZ
Henry/NNP
Saveth/NNP
of/IN
consultant/NN
A./NNP
Foster/NNP
Higgins/NNP
&/CC
Co/NNP
./.
Frederick/NNP
Rumack/NNP
of/IN
Buck/NNP
Consultants/NNP
has/VBZ
asked/VBN
Labor/NNP
to/TO
recraft/VB
its/PRP$
rule/NN
to/TO
remove/VB
the/DT
IRS/NNP
threat/NN
./.
CORPORATE/JJ
DOWNSIZING/NN
digs/VBZ
deeper/JJR
./.
Outplacement/NN
consultant/NN
Right/NNP
Associates/NNP
says/VBZ
the/DT
average/JJ
pay/NN
of/IN
its/PRP$
clients/NNS
fell/VBD
to/TO
$/$
66,743/CD
last/JJ
year/NN
from/IN
$/$
70,765/CD
in/IN
1987/CD
;/:
severance/JJ
pay/NN
dropped/VBD
to/TO
25/CD
weeks/NNS
from/IN
29/CD
./.
Both/DT
reflect/VBP
the/DT
dismissal/NN
of/IN
lower-level/JJ
and/CC
shorter-tenure/JJ
executives/NNS
./.
FIRST/RB
TEACH/VB
THYSELF/PRP
./.
Executives/NNS
universally/RB
believe/VBP
workers/NNS
should/MD
know/VB
their/PRP$
employer-sponsored/JJ
benefits/NNS
./.
But/CC
three/CD
out/IN
of/IN
four/CD
managers/NNS
ca/MD
n't/RB
accurately/RB
state/VBP
the/DT
value/NN
of/IN
their/PRP$
own/JJ
packages/NNS
,/,
consultant/NN
Noble/NNP
Lowndes/NNP
says/VBZ
./.
MEA/NNP
CULPA/NNP
./.
Fully/RB
62/CD
%/NN
of/IN
the/DT
doctors/NNS
surveyed/VBN
for/IN
Metropolitan/NNP
Life/NNP
Insurance/NNP
Co./NNP
think/VBP
their/PRP$
fellow/JJ
physicians/NNS
are/VBP
responsible/JJ
for/IN
rising/JJ
health-care/NN
costs/NNS
,/,
ahead/RB
of/IN
hospitals/NNS
55/CD
%/NN
patients/NNS
48/CD
%/NN
NO/RB
,/,
YOU/PRP
WORK/VBP
!/.
Only/RB
one/CD
in/IN
four/CD
companies/NNS
with/IN
flexible/JJ
benefit/NN
plans/NNS
lets/VBZ
workers/NNS
buy/VB
or/CC
sell/VB
vacation/NN
days/NNS
,/,
consultant/NN
Towers/NNP
Perrin/NNP
says/VBZ
./.
Employees/NNS
like/VBP
the/DT
option/NN
but/CC
firms/NNS
say/VBP
it/PRP
's/VBZ
too/RB
tough/JJ
to/TO
run/VB
./.
STUDENTS/NNS
SHUN/VBP
burger/NN
flipping/VBG
for/IN
jobs/NNS
tied/VBN
to/TO
careers/NNS
./.
Some/DT
even/RB
study/VBP
./.
``/``
Fast-food/NN
jobs/NNS
are/VBP
n't/RB
popular/JJ
no/DT
matter/NN
what/WP
they/PRP
pay/VBP
,/,
''/''
says/VBZ
a/DT
Tufts/NNP
official/NN
./.
Working/JJ
students/NNS
,/,
she/PRP
explains/VBZ
,/,
want/VBP
``/``
some/DT
satisfaction/NN
./.
''/''
University/NNP
of/IN
Michigan/NNP
students/NNS
look/VBP
for/IN
jobs/NNS
related/VBN
to/TO
planned/VBN
careers/NNS
./.
Carnegie/NNP
Mellon/NNP
,/,
though/RB
,/,
says/VBZ
some/DT
students/NNS
conclude/VBP
they/PRP
can/MD
help/VB
their/PRP$
careers/NNS
most/RBS
by/IN
hitting/VBG
the/DT
books/NNS
:/:
``/``
They/PRP
're/VBP
opting/VBG
to/TO
build/VB
their/PRP$
resumes/NNS
through/IN
good/JJ
grades/NNS
and/CC
leadership/NN
roles/NNS
in/IN
fraternities/NNS
./.
''/''
Slowing/JJ
economies/NNS
in/IN
some/DT
areas/NNS
limit/VBP
student/NN
choice/NN
./.
Student/NN
job/NN
postings/NNS
at/IN
Boston/NNP
University/NNP
slip/VBP
10/CD
%/NN
this/DT
year/NN
following/VBG
a/DT
10/CD
%/NN
drop/NN
in/IN
1988/CD
./.
Still/RB
,/,
the/DT
school/NN
says/VBZ
there/EX
are/VBP
an/DT
ample/JJ
number/NN
and/CC
pay/NN
is/VBZ
up/IN
to/TO
$/$
7.20/CD
an/DT
hour/NN
from/IN
$/$
6.90/CD
last/JJ
year/NN
./.
M.B.A./NNP
candidates/NNS
at/IN
the/DT
University/NNP
of/IN
Pittsburgh/NNP
earn/VBP
up/IN
to/TO
$/$
15/CD
an/DT
hour/NN
on/IN
marketing/NN
or/CC
computer/NN
projects/NNS
./.
THE/DT
CHECKOFF/NN
:/:
Fiery/JJ
ambition/NN
:/:
Hyatt/NNP
Corp./NNP
hires/VBZ
a/DT
University/NNP
of/IN
Wyoming/NNP
graduate/NN
with/IN
degrees/NNS
in/IN
geology/NN
and/CC
petroleum/NN
engineering/NN
for/IN
$/$
7.50/CD
an/DT
hour/NN
to/TO
tend/VB
wood/NN
fires/NNS
at/IN
a/DT
Colorado/NNP
ski/NN
resort/NN
.../:
./.
Is/VBZ
somebody/NN
telling/VBG
us/PRP
something/NN
?/.
Our/PRP$
copy/NN
of/IN
Racine/NNP
Labor/NN
comes/VBZ
through/IN
the/DT
mail/NN
wrapped/VBN
around/IN
two/CD
sections/NNS
of/IN
Baseball/NNP
Card/NNP
News/NNP
./.
Democracy/NN
is/VBZ
making/VBG
a/DT
return/NN
with/IN
a/DT
vengeance/NN
to/TO
Latin/NNP
America/NNP
's/POS
most/RBS
populous/JJ
and/CC
deeply/RB
indebted/JJ
country/NN
./.
On/IN
Nov./NNP
15/CD
,/,
when/WRB
Brazilians/NNS
elect/VBP
a/DT
president/NN
for/IN
the/DT
first/JJ
time/NN
in/IN
29/CD
years/NNS
,/,
the/DT
country/NN
's/POS
82/CD
million/CD
voters/NNS
will/MD
have/VB
22/CD
candidates/NNS
to/TO
choose/VB
from/IN
./.
The/DT
candidates/NNS
have/VBP
been/VBN

crisscrossing/VBG
this/DT
huge/JJ
country/NN
of/IN
145/CD
million/CD
people/NNS
,/,
holding/VBG
rallies/NNS
and/CC
televised/VBN
debates/NNS
in/IN
hope/NN
of/IN
being/VBG
elected/VBN
to/TO
what/WP
must/MD
be/VB
one/CD
of/IN
the/DT
world/NN
's/POS
most/RBS
thankless/JJ
political/JJ
jobs/NNS
:/:
trying/VBG
to/TO
drag/VB
Brazil/NNP
out/IN
of/IN
its/PRP$
economic/JJ
and/CC
social/JJ
mess/NN
./.
``/``
I/PRP
feel/VBP
sorry/RB
for/IN
whoever/WP
wins/VBZ
,/,
''/''
says/VBZ
a/DT
Brazilian/JJ
diplomat/NN
./.
Who/WP
that/DT
winner/NN
will/MD
be/VB
is/VBZ
highly/RB
uncertain/JJ
./.
A/DT
half-dozen/JJ
candidates/NNS
,/,
backing/VBG
policies/NNS
ranging/VBG
from/IN
Thatcherism/NNP
to/TO
watered-down/JJ
Marxism/NNP
,/,
are/VBP
given/VBN
a/DT
chance/NN
of/IN
winning/VBG
./.
``/``
Whoever/WP
says/VBZ
he/PRP
knows/VBZ
which/WDT
of/IN
the/DT
six/CD
will/MD
win/VB
is/VBZ
out/IN
of/IN
his/PRP$
mind/NN
,/,
''/''
says/VBZ
Antonio/NNP
Britto/NNP
,/,
a/DT
centrist/JJ
member/NN
of/IN
Parliament/NNP
./.
The/DT
favorite/NN
remains/VBZ
Fernando/NNP
Collor/NNP
de/IN
Mello/NNP
,/,
a/DT
40-year-old/JJ
former/JJ
governor/NN
of/IN
the/DT
state/NN
of/IN
Alagoas/NNP
./.
He/PRP
came/VBD
out/IN
of/IN
nowhere/RB
to/TO
grab/VB
the/DT
lead/NN
in/IN
opinion/NN
polls/NNS
,/,
probably/RB
less/RBR
because/RB
of/IN
his/PRP$
vague/JJ
program/NN
to/TO
``/``
build/VB
a/DT
new/JJ
Brazil/NNP
''/''
than/IN
because/IN
of/IN
his/PRP$
good/JJ
looks/NNS
,/,
the/DT
open/JJ
backing/NN
of/IN
the/DT
powerful/JJ
Rede/NNP
Globo/NNP
television/NN
network/NN
and/CC
his/PRP$
reputation/NN
as/IN
a/DT
hunter/NN
of/IN
``/``
maharajahs/NNS
,/,
''/''
or/CC
overpaid/VBN
and/CC
underworked/JJ
civil/JJ
servants/NNS
./.
But/CC
after/RB
building/VBG
up/IN
a/DT
commanding/JJ
lead/NN
,/,
the/DT
moderate/JJ
to/TO
conservative/JJ
Mr./NNP
Collor/NNP
has/VBZ
slipped/VBN
to/TO
about/RB
30/CD
%/NN
in/IN
the/DT
polls/NNS
from/IN
a/DT
high/NN
of/IN
about/RB
43/CD
%/NN
only/RB
a/DT
few/JJ
weeks/NNS
ago/RB
./.
To/TO
avoid/VB
a/DT
runoff/NN
,/,
one/CD
candidate/NN
would/MD
have/VB
to/TO
win/VB
50/CD
%/NN
of/IN
the/DT
vote/NN
--/:
a/DT
feat/NN
that/IN
most/JJS
analysts/NNS
consider/VBP
impossible/JJ
with/IN
so/RB
many/JJ
candidates/NNS
running/VBG
./.
Two/CD
left-wing/JJ
politicians/NNS
,/,
Socialist/NNP
Leonel/NNP
Brizola/NNP
,/,
a/DT
former/JJ
governor/NN
of/IN
Rio/NNP
de/IN
Janeiro/NNP
state/NN
,/,
and/CC
Marxist-leaning/NNP
Luis/NNP
Inacio/NNP
da/NN
Silva/NN
,/,
currently/RB
are/VBP
running/VBG
neck/NN
and/CC
neck/NN
at/IN
about/RB
15/CD
%/NN
,/,
and/CC
three/CD
other/JJ
candidates/NNS
are/VBP
given/VBN
a/DT
chance/NN
of/IN
reaching/VBG
the/DT
Dec./NN
17/CD
runoff/NN
election/NN
between/IN
the/DT
two/CD
biggest/JJS
vote-getters/NNS
:/:
Social/NNP
Democrat/NNP
Mario/NNP
Covas/NNP
and/CC
two/CD
conservatives/NNS
,/,
Paulo/NNP
Salim/NNP
Maluf/NNP
,/,
a/DT
former/JJ
governor/NN
of/IN
the/DT
state/NN
of/IN
Sao/NNP
Paulo/NNP
,/,
and/CC
Guilherme/NNP
Afif/NNP
Domingos/NNP
./.
The/DT
uncertainty/NN
is/VBZ
sending/VBG
shivers/NNS
through/IN
Brazilian/JJ
financial/JJ
markets/NNS
./.
The/DT
dollar/NN
,/,
the/DT
best/JJS
indicator/NN
of/IN
the/DT
country/NN
's/POS
mood/NN
,/,
has/VBZ
skyrocketed/VBN
on/IN
the/DT
parallel/JJ
market/NN
,/,
as/IN
has/VBZ
gold/NN
./.
Capital/NN
flight/NN
is/VBZ
reported/VBN
to/TO
be/VB
strong/JJ
./.
The/DT
big/JJ
question/NN
is/VBZ
whether/IN
the/DT
new/JJ
president/NN
will/MD
have/VB
the/DT
strength/NN
and/CC
the/DT
political/JJ
support/NN
in/IN
Congress/NNP
to/TO
take/VB
steps/NNS
to/TO
cure/VB
Brazil/NNP
's/POS
economic/JJ
ills/NNS
./.
President/NNP
Jose/NNP
Sarney/NNP
,/,
who/WP
took/VBD
office/NN
in/IN
1985/CD
when/WRB
the/DT
man/NN
picked/VBN
by/IN
an/DT
electoral/JJ
college/NN
became/VBD
critically/RB
ill/RB
,/,
appears/VBZ
to/TO
be/VB
simply/RB
trying/VBG
to/TO
avoid/VB
hyperinflation/NN
./.
The/DT
unpopular/JJ
Mr./NNP
Sarney/NNP
,/,
whose/WP$
task/NN
was/VBD
to/TO
bring/VB
about/RP
a/DT
smooth/JJ
transition/NN
to/TO
democracy/NN
after/IN
21/CD
years/NNS
of/IN
military/JJ
rule/NN
,/,
is/VBZ
n't/RB
seeking/VBG
re-election/NN
./.
What/WP
comes/VBZ
out/IN
of/IN
the/DT
ballot/NN
box/NN
could/MD
be/VB
crucial/JJ
in/IN
determining/VBG
whether/IN
Brazil/NNP
finally/RB
lives/VBZ
up/RP
to/TO
the/DT
potential/NN
of/IN
the/DT
world/NN
's/POS
eighth/JJ
largest/JJS
economy/NN
or/CC
keeps/VBZ
living/VBG
up/RP
to/TO
its/PRP$
other/JJ
,/,
less/RBR
enviable/JJ
title/NN
:/:
that/DT
of/IN
the/DT
developing/JJ
world/NN
's/POS
largest/JJS
debtor/NN
,/,
teetering/VBG
on/IN
the/DT
brink/NN
of/IN
hyperinflation/NN
,/,
mired/VBN
in/IN
deficits/NNS
and/CC
stagnation/NN
,/,
with/IN
huge/JJ
economic/JJ
inequalities/NNS
and/CC
social/JJ
discontent/NN
boiling/VBG
under/IN
the/DT
surface/NN
./.
If/IN
Brazil/NNP
devises/VBZ
an/DT
economic/JJ
strategy/NN
allowing/VBG
it/PRP
to/TO
resume/VB
growth/NN
and/CC
service/VB
debt/NN
,/,
this/DT
could/MD
lead/VB
it/PRP
to/TO
open/VB
up/RP
and/CC
deregulate/VB
its/PRP$
sheltered/JJ
economy/NN
,/,
analysts/NNS
say/VBP
,/,
just/RB
as/IN
Argentinian/JJ
President/NNP
Carlos/NNP
Saul/NNP
Menem/NNP
has/VBZ
been/VBN
doing/VBG
even/RB
though/IN
he/PRP
was/VBD
elected/VBN
on/IN
a/DT
populist/JJ
platform/NN
./.
``/``
Depending/VBG
on/IN
the/DT
president/NN
,/,
we/PRP
could/MD
either/RB
be/VB
a/DT
trillion-dollar/JJ
economy/NN
by/IN
the/DT
end/NN
of/IN
the/DT
century/NN
or/CC
stay/VB
where/WRB
we/PRP
are/VBP
,/,
''/''
says/VBZ
political/JJ
scientist/NN
Amaury/NNP
de/IN
Souza/NNP
./.
``/``
And/CC
where/WRB
we/PRP
are/VBP
is/VBZ
bad/JJ
./.
''/''
Despite/IN
valiant/JJ
efforts/NNS
by/IN
Finance/NNP
Minister/NNP
Mailson/NNP
Ferreira/NNP
da/NNP
Nobrega/NNP
,/,
inflation/NN
came/VBD
to/TO
36/CD
%/NN
in/IN
September/NNP
alone/RB
and/CC
is/VBZ
expected/VBN
to/TO
top/VB
1,000/CD
%/NN
for/IN
the/DT
year/NN
./.
That/DT
might/MD
have/VB
been/VBN
considered/VBN
hyperinflation/NN
not/RB
long/RB
ago/RB
,/,
but/CC
Argentina/NNP
endured/VBD
price/NN
increases/NNS
of/IN
almost/RB
200/CD
%/NN
in/IN
July/NNP
before/IN
bringing/VBG
the/DT
rate/NN
down/RP
sharply/RB
in/IN
August/NNP
and/CC
September/NNP
./.
Still/RB
,/,
massive/JJ
internal/JJ
debt/NN
has/VBZ
forced/VBN
the/DT
government/NN
to/TO
borrow/VB
massively/RB
on/IN
the/DT
domestic/JJ
market/NN
and/CC
to/TO
offer/VB
inflation-adjusted/JJ
returns/NNS
of/IN
2/CD
%/NN
to/TO
3/CD
%/NN
a/DT
month/NN
just/RB
to/TO
get/VB
investors/NNS
to/TO
hold/VB
on/RP
to/TO
its/PRP$
paper/NN
./.
About/RB
$/$
70/CD
billion/CD
is/VBZ
estimated/VBN
to/TO
be/VB
tied/VBN
up/RP
in/IN
the/DT
short-term/JJ
money/NN
market/NN
,/,
which/WDT
acts/VBZ
both/DT
as/IN
a/DT
hedge/NN
against/IN
inflation/NN
for/IN
consumers/NNS
and/CC
an/DT
accelerator/NN
of/IN
inflation/NN
and/CC
deficits/NNS
for/IN
the/DT
government/NN
./.
By/IN
some/DT
estimates/NNS
,/,
Brazil/NNP
's/POS
internal/JJ
debt/NN
,/,
or/CC
combined/VBN
public/JJ
deficit/NN
,/,
could/MD
reach/VB
6.5/CD
%/NN
of/IN
its/PRP$
$/$
351/CD
billion/CD
gross/JJ
domestic/JJ
product/NN
./.
Much/RB
of/IN
the/DT
money/NN
goes/VBZ
into/IN
subsidies/NNS
or/CC
keeping/VBG
inefficient/JJ
state-controlled/JJ
companies/NNS
operating/VBG
./.
Among/IN
the/DT
results/NNS
is/VBZ
a/DT
frequent/JJ
breakdown/NN
of/IN
public/JJ
services/NNS
./.
It/PRP
's/VBZ
not/RB
uncommon/JJ
to/TO
wait/VB
three/CD
minutes/NNS
for/IN
a/DT
dial/NN
tone/NN
after/IN
picking/VBG
up/RP
the/DT
telephone/NN
,/,
and/CC
then/RB
to/TO
be/VB
interrupted/VBN
by/IN
a/DT
busy/JJ
signal/NN
before/IN
finishing/VBG
dialing/VBG
the/DT
number/NN
./.
Officials/NNS
also/RB
say/VBP
a/DT
national/JJ
electricity/NN
shortage/NN
might/MD
not/RB
be/VB
far/RB
off/RP
./.
Economists/NNS
,/,
businessmen/NNS
and/CC
some/DT
politicians/NNS
agree/VBP
that/IN
the/DT
answer/NN
is/VBZ
an/DT
orthodox/JJ
economic/JJ
austerity/NN
program/NN
including/VBG
reduced/VBN
state/NN
spending/NN
;/:
focusing/VBG
spending/NN
on/IN
vital/JJ
areas/NNS
such/JJ
as/IN
education/NN
,/,
health/NN
and/CC
welfare/NN
;/:
turning/VBG
state/NN
companies/NNS
private/JJ
;/:
reforming/VBG
the/DT
tax/NN
system/NN
,/,
raising/VBG
public/JJ
service/NN
rates/NNS
to/TO
match/VB
costs/NNS
;/:
and/CC
possibly/RB
a/DT
temporary/JJ
wage/NN
and/CC
price/NN
freeze/NN
and/CC
a/DT
devaluation/NN
of/IN
the/DT
cruzado/NN
./.
Analysts/NNS
also/RB
say/VBP
it/PRP
's/VBZ
inevitable/JJ
that/IN
Brazil/NNP
will/MD
seek/VB
to/TO
renegotiate/VB
its/PRP$
$/$
115/CD
billion/CD
foreign/JJ
debt/NN
,/,
on/IN
which/WDT
it/PRP
suspended/VBD
interest/NN
payments/NNS
last/JJ
month/NN
./.
Analysts/NNS
say/VBP
,/,
however/RB
,/,
that/IN
a/DT
tough/JJ
economic/JJ
program/NN
would/MD
have/VB
to/TO
be/VB
accompanied/VBN
by/IN
measures/NNS
to/TO
shield/VB
the/DT
poor/JJ
from/IN
its/PRP$
recessionary/JJ
effects/NNS
,/,
for/IN
instance/NN
by/IN
subsidizing/VBG
staple/JJ
food/NN
items/NNS
./.
About/RB
80/CD
%/NN
of/IN
Brazil/NNP
's/POS
voters/NNS
are/VBP
believed/VBN
to/TO
live/VB
near/IN
the/DT
poverty/NN
level/NN
./.
Of/IN
the/DT
three/CD
candidates/NNS
with/IN
a/DT
serious/JJ
chance/NN
of/IN
winning/VBG
,/,
Mr./NNP
Collor/NNP
comes/VBZ
closest/JJS
to/TO
advocating/VBG
the/DT
sort/NN
of/IN
measures/NNS
that/IN
economists/NNS
say/VBP
are/VBP
necessary/JJ
./.
But/CC
his/PRP$
inexperience/NN
raises/VBZ
doubts/NNS
that/IN
he/PRP
would/MD
have/VB
the/DT
political/JJ
power/NN
to/TO
carry/VB
them/PRP
out/RP
./.
The/DT
67-year-old/JJ
Mr./NNP
Brizola/NNP
has/VBZ
been/VBN
vague/JJ
about/IN
his/PRP$
intentions/NNS
and/CC
often/RB
inflammatory/JJ
in/IN
his/PRP$
rhetoric/NN
,/,
but/CC
analysts/NNS
say/VBP
he/PRP
probably/RB
would/MD
be/VB
pragmatic/JJ
./.
Mr./NNP
da/NNP
Silva/NNP
,/,
a/DT
43-year-old/JJ
former/JJ
factory/NN
worker/NN
and/CC
labor/NN
leader/NN
,/,
is/VBZ
the/DT
most/RBS
radical/JJ
,/,
vowing/VBG
to/TO
withhold/VB
payments/NNS
on/IN
the/DT
foreign/JJ
debt/NN
and/CC
saying/VBG
he/PRP
``/``
would/MD
n't/RB
go/VB
around/RP
putting/VBG
the/DT
country/NN
up/RP
for/IN
sale/NN
to/TO
the/DT
highest/JJS
bidder/NN
./.
''/''
But/CC
despite/IN
the/DT
differences/NNS
in/IN
what/WP
they/PRP
say/VBP
,/,
according/VBG
to/TO
some/DT
analysts/NNS
here/RB
,/,
economic/JJ
constraints/NNS
mean/VBP
the/DT
next/JJ
president/NN
may/MD
not/RB
have/VB
many/JJ
choices/NNS
about/IN
what/WP
he/PRP
does/VBZ
./.
Hospital/NN
Regulation/NN
Sparks/VBZ
Kentucky/NNP
Feud/NN
WHICH/WDT
IS/VBZ
the/DT
best/JJS
medicine/NN
for/IN
runaway/JJ
health/NN
costs/NNS
:/:
competition/NN
or/CC
regulation/NN
?/.
The/DT
question/NN
is/VBZ
at/IN
the/DT
root/NN
of/IN
a/DT
brawl/NN
between/IN
Humana/NNP
Inc./NNP
,/,
the/DT
big/JJ
for-profit/JJ
hospital/NN
and/CC
insurance/NN
company/NN
,/,
and/CC
its/PRP$
not-for-profit/JJ
brethren/NNS
in/IN
its/PRP$
home/NN
state/NN
of/IN
Kentucky/NNP
./.
The/DT
battle/NN
focuses/VBZ
on/IN
the/DT
state/NN
's/POS
certificate-of-need/NN
law/NN
,/,
which/WDT
regulates/VBZ
investment/NN
in/IN
new/JJ
medical/JJ
technology/NN
./.
The/DT
law/NN
has/VBZ
prevented/VBN
$/$
216/CD
million/CD
of/IN
unnecessary/JJ
expenditures/NNS
since/IN
1986/CD
,/,
according/VBG
to/TO
William/NNP
S./NNP
Conn/NNP
,/,
president/NN
of/IN
the/DT
Kentucky/NNP
Hospital/NNP
Association/NNP
./.
But/CC
according/VBG
to/TO
David/NNP
Jones/NNP
,/,
Humana/NNP
's/POS
chief/JJ
executive/NN
,/,
it/PRP
promotes/VBZ
technology/NN
monopolies/NNS
,/,
stifles/VBZ
innovation/NN
and/CC
raises/VBZ
prices/NNS
./.
If/IN
the/DT
Legislature/NNP
does/VBZ
n't/RB
repeal/VB
the/DT
law/NN
,/,
due/JJ
for/IN
revision/NN
in/IN
1990/CD
,/,
Mr./NNP
Jones/NNP
says/VBZ
Humana/NNP
may/MD
move/VB
its/PRP$
insurance/NN
operations/NNS
,/,
including/VBG
3,000/CD
jobs/NNS
in/IN
Louisville/NNP
,/,
to/TO
another/DT
state/NN
./.
The/DT
company/NN
complains/VBZ
that/IN
it/PRP
paid/VBD
$/$
10/CD
million/CD
to/TO
non-Humana/JJ
hospitals/NNS
in/IN
its/PRP$
latest/JJS
fiscal/JJ
year/NN
for/IN
services/NNS
provided/VBN
to/TO
its/PRP$
insurance/NN
plan/NN
members/NNS
./.
But/CC
Humana/NNP
says/VBZ
its/PRP$
own/JJ
facilities/NNS
could/MD
serve/VB
its/PRP$
insured/VBN
for/IN
less/JJR
if/IN
they/PRP
were/VBD
properly/RB
equipped/VBN
./.
Mr./NNP
Conn/NNP
charges/VBZ
that/IN
Humana/NNP
's/POS
own/JJ
actions/NNS
undermine/VBP
its/PRP$
argument/NN
./.
When/WRB
a/DT
hospital/NN
in/IN
Lexington/NNP
installed/VBD
a/DT
lithotripter/NN
last/JJ
year/NN
,/,
demand/NN
for/IN
a/DT
similar/JJ
kidney-stone/NN
smashing/NN
machine/NN
at/IN
a/DT
Humana/NNP
hospital/NN
in/IN
Louisville/NNP
fell/VBD
34/CD
%/NN
./.
The/DT
Humana/NNP
hospital/NN
responded/VBD
by/IN
jacking/VBG
up/RP
prices/NNS
to/TO
make/VB
up/RP
for/IN
lost/VBN
revenue/NN
,/,
Mr./NNP
Conn/NNP
says/VBZ
,/,
and/CC
now/RB
charges/VBZ
as/RB
much/JJ
as/IN
$/$
8,000/CD
for/IN
the/DT
procedure/NN
,/,
which/WDT
costs/VBZ
only/RB
about/RB
$/$
3,500/CD
in/IN
Lexington/NNP
./.
Humana/NNP
contends/VBZ
that/IN
$/$
8,000/CD
represents/VBZ
an/DT
extreme/JJ
case/NN
and/CC
that/IN
its/PRP$
regular/JJ
charge/NN
for/IN
lithotripsy/NN
is/VBZ
$/$
4,900/CD
./.
Meanwhile/RB
,/,
another/DT
hospital/NN
's/POS
proposal/NN
for/IN
a/DT
new-generation/NN
lithotripter/NN
is/VBZ
pending/VBG
before/IN
the/DT
board/NN
that/WDT
administers/VBZ
the/DT
certificate-of-need/NN
law/NN
./.
Humana/NNP
,/,
which/WDT
wants/VBZ
to/TO
acquire/VB
one/CD
of/IN
the/DT
new/JJ
machines/NNS
itself/PRP
,/,
is/VBZ
on/IN
the/DT
record/NN
as/IN
opposed/VBN
to/TO
the/DT
proposal/NN
./.
Debt-Burdened/JJ
Doctors/NNS
Seek/VBP
Financial/JJ
Security/NN
HEALTH-CARE/NN
experts/NNS
have/VBP
long/RB
worried/VBN
that/IN
young/JJ
doctors/NNS
emerging/VBG
from/IN
medical/JJ
school/NN
with/IN
a/DT
mountain/NN
of/IN
debt/NN
will/MD
choose/VB
careers/NNS
in/IN
high-paying/JJ
specialties/NNS
instead/RB
of/IN
primary/JJ
care/NN
,/,
where/WRB
more/JJR
physicians/NNS
are/VBP
needed/VBN
most/RBS
./.
Now/RB
there/EX
's/VBZ
a/DT
new/JJ
wrinkle/NN
in/IN
what/WP
young/JJ
doctors/NNS
want/VBP
:/:
More/JJR
than/IN
half/NN
of/IN
300/CD
residents/NNS
responding/VBG
to/TO
recent/JJ
survey/NN
said/VBD
they/PRP
'd/MD
prefer/VB
a/DT
guaranteed/VBN
salary/NN
over/IN
traditional/JJ
fee-for-service/JJ
compensation/NN
in/IN
their/PRP$
first/JJ
professional/JJ
position/NN
./.
And/CC
81/CD
%/NN
preferred/VBD
a/DT
group/NN
practice/NN
or/CC
health/NN
maintenance/NN
organization/NN
,/,
while/IN
just/RB
11/CD
%/NN
favored/VBD
solo/NN
practice/NN
./.
``/``
Ten/CD
years/NNS
ago/RB
,/,
a/DT
physician/NN
would/MD
go/VB
to/TO
a/DT
town/NN
and/CC
take/VB
out/RP
a/DT
loan/NN
a/DT
practice/NN
James/NNP
Merritt/NNP
,/,
president/NN
of/IN
Merritt/NNP
,/,
Hawkins/NNP
&/CC
Associates/NNP
,/,
an/DT
Irvine/NNP
,/,
Calif./NNP
,/,
physician/NN
recruiter/NN
that/WDT
conducted/VBD
the/DT
survey/NN
./.
``/``
They/PRP
wo/MD
n't/RB
do/VB
that/DT
very/RB
often/RB
today/NN
at/IN
all/DT
./.
They/PRP
're/VBP
looking/VBG
for/IN
something/NN
that/WDT
's/VBZ
very/RB
safe/JJ
./.
''/''
The/DT
numbers/NNS
behind/IN
such/JJ
fears/NNS
:/:
The/DT
average/JJ
debt/NN
of/IN
medical/JJ
school/NN
graduates/NNS
who/WP
borrowed/VBD
to/TO
pay/VB
for/IN
their/PRP$
education/NN
jumped/VBD
10/CD
%/NN
to/TO
$/$
42,374/CD
this/DT
year/NN
from/IN
$/$
38,489/CD
in/IN
1988/CD
,/,
says/VBZ
the/DT
Association/NNP
of/IN
American/NNP
Medical/NNP
Colleges/NNP
./.
That/DT
's/VBZ
115/CD
%/NN
more/JJR
than/IN
in/IN
1981/CD
./.
Money/NN
is/VBZ
n't/RB
the/DT
only/JJ
reason/NN
for/IN
the/DT
shift/NN
in/IN
practice/NN
preferences/NNS
./.
It/PRP
reflects/VBZ
values/NNS
of/IN
a/DT
generation/NN
that/WDT
wants/VBZ
more/JJR
time/NN
for/IN
families/NNS
and/CC
personal/JJ
interests/NNS
,/,
says/VBZ
John/NNP
H./NNP
Moxley/NNP
III/NNP
,/,
who/WP
directs/VBZ
physician-executive/JJ
searches/NNS
for/IN
Korn\/Ferry/NNP
International/NNP
./.
``/``
This/DT
is/VBZ
a/DT
change/NN
in/IN
the/DT
social/JJ
fabric/NN
of/IN
medicine/NN
,/,
''/''
he/PRP
says/VBZ
./.
Related/JJ
Roommates/NNS
Trim/VBP
Hospital/NN
Bills/NNS
WHEN/WRB
Catherine/NNP
Bobar/NNP
spent/VBD
several/JJ
weeks/NNS
at/IN
the/DT
Medical/NNP
Center/NNP
of/IN
Vermont/NNP
recently/RB
with/IN
a/DT
bone/NN
infection/NN
in/IN
her/PRP$
toe/NN
,/,
she/PRP
shared/VBD
a/DT
room/NN
just/RB
like/IN
most/JJS
patients/NNS
./.
But/CC
unlike/IN
most/JJS
patients/NNS
,/,
her/PRP$
roommate/NN
was/VBD
her/PRP$
husband/NN
./.
``/``
It/PRP
was/VBD
certainly/RB
good/JJ
to/TO
have/VB
him/PRP
handy/JJ
,/,
''/''
Mrs./NNP
Bobar/NNP
says/VBZ
./.
The/DT
12-bed/JJ
``/``
cooperative/JJ
care/NN
''/''
unit/NN
is/VBZ
one/CD
of/IN
about/RB
18/CD
nationwide/JJ
where/WRB
a/DT
family/NN
member/NN
or/CC
friend/NN
helps/VBZ
care/VB
for/IN
a/DT
patient/NN
in/IN
the/DT
hospital/NN
./.
``/``
The/DT
philosophy/NN
is/VBZ
to/TO
make/VB
the/DT
patient/NN
and/CC
the/DT
family/NN
very/RB
responsible/JJ
for/IN
a/DT
portion/NN
of/IN
their/PRP$
own/JJ
care/NN
,/,
''/''
says/VBZ
Anthony/NNP
J./NNP
Grieco/NNP
,/,
medical/JJ
director/NN
of/IN
cooperative/JJ
care/NN
at/IN
New/NNP
York/NNP
University/NNP
Medical/NNP
Center/NNP
,/,
where/WRB
the/DT
concept/NN
began/VBD
10/CD
years/NNS
ago/RB
./.
``/``
It/PRP
helps/VBZ
us/PRP
,/,
and/CC
them/PRP
,/,
while/IN
they/PRP
're/VBP
here/RB
,/,
and/CC
it/PRP
certainly/RB
makes/VBZ
them/PRP
a/DT
better/JJR
health-care/NN
team/NN
when/WRB
they/PRP
get/VBP
home/NN
./.
''/''
It/PRP
also/RB
saves/VBZ
money/NN
./.
Because/IN
patients/NNS
require/VBP
less/JJR
attention/NN
from/IN
nurses/NNS
and/CC
other/JJ
staff/NN
,/,
room/NN
charges/NNS
are/VBP
lower/JJR
--/:
about/RB
$/$
100/CD
less/JJR
per/IN
day/NN
than/IN
a/DT
regular/JJ
room/NN
at/IN
the/DT
Vermont/NNP
hospital/NN
./.
Cancer/NN
patients/NNS
needing/VBG
prolonged/JJ
radiation/NN
therapy/NN
,/,
diabetics/NNS
learning/VBG
to/TO
manage/VB
their/PRP$
blood/NN
sugar/NN
levels/NNS
,/,
and/CC
cardiac/JJ
bypass/NN
patients/NNS
are/VBP
among/IN
those/DT
who/WP
spend/VBP
time/NN
on/IN
cooperative-care/JJ
units/NNS
./.
The/DT
approach/NN
has/VBZ
generated/VBN
so/RB
much/JJ
interest/NN
that/IN
NYU/NNP
is/VBZ
host/NN
to/TO
the/DT
first/JJ
conference/NN
on/IN
cooperative/JJ
care/NN
Nov./NNP
30/CD
./.
``/``
It/PRP
's/VBZ
really/RB
part/NN
of/IN
the/DT
hospital/NN
of/IN
the/DT
21st/JJ
century/NN
,/,
''/''
Dr./NNP
Grieco/NNP
says/VBZ
./.
Odds/NNS
and/CC
Ends/NNS
THE/DT
CHIEF/JJ
NURSING/NN
officer/NN
can/MD
be/VB
responsible/JJ
for/IN
more/JJR
than/IN
1,000/CD
employees/NNS
and/CC
at/IN
least/JJS
one-third/JJ
of/IN
a/DT
hospital/NN
's/POS
budget/NN
;/:
a/DT
head/NN
nurse/NN
typically/RB
oversees/VBZ
up/IN
to/TO
80/CD
employees/NNS
and/CC
$/$
8/CD
million/CD
./.
So/RB
says/VBZ
the/DT
Commonwealth/NNP
Fund/NNP
,/,
a/DT
New/NNP
York/NNP
philanthropist/NN
that/WDT
's/VBZ
sponsoring/VBG
a/DT
$/$
1/CD
million/CD
project/NN
to/TO
develop/VB
joint/JJ
masters/NNS
in/IN
business/NN
and/CC
nursing/NN
programs/NNS
at/IN
10/CD
universities/NNS
.../:
./.
Meharry/NNP
Medical/NNP
College/NNP
in/IN
Nashville/NNP
,/,
Tenn./NNP
,/,
launches/VBZ
a/DT
new/JJ
research/NN
publication/NN
in/IN
the/DT
spring/NN
:/:
the/DT
Journal/NNP
on/IN
Health/NNP
Care/NNP
for/IN
the/DT
Poor/NNP
and/CC
Underserved/NNP
./.
A/DT
group/NN
of/IN
Michigan/NNP
investors/NNS
has/VBZ
offered/VBN
to/TO
buy/VB
Knight-Ridder/NNP
Inc./NNP
's/POS
ailing/VBG
Detroit/NNP
Free/NNP
Press/NNP
for/IN
$/$
68/CD
million/CD
but/CC
has/VBZ
left/VBN
unclear/JJ
how/WRB
the/DT
offer/NN
will/MD
be/VB
financed/VBN
./.
The/DT
offer/NN
came/VBD
just/RB
prior/RB
to/TO
arguments/NNS
before/IN
the/DT
U.S./NNP
Supreme/NNP
Court/NNP
over/IN
whether/IN
the/DT
Free/NNP
Press/NNP
should/MD
be/VB
allowed/VBN
to/TO
enter/VB
into/IN
a/DT
joint/JJ
operating/NN
pact/NN
with/IN
Gannett/NNP
Co./NNP
's/POS
Detroit/NNP
News/NNP
./.
The/DT
group/NN
led/VBD
by/IN
Birmingham/NNP
,/,
Mich./NNP
,/,
publicist/NN
William/NNP
D./NNP
McMaster/NNP
did/VBD
n't/RB
name/VB
an/DT
investment/NN
banker/NN
backing/VBG
the/DT
deal/NN
or/CC
say/VB
how/WRB
much/JJ
its/PRP$
members/NNS
will/MD
contribute/VB
to/TO
the/DT
offer/NN
./.
Indeed/UH
,/,
some/DT
individuals/NNS
identified/VBN
with/IN
the/DT
group/NN
said/VBD
they/PRP
have/VBP
n't/RB
committed/VBN
any/DT
money/NN
to/TO
the/DT
bid/NN
and/CC
were/VBD
n't/RB
aware/JJ
of/IN
it/PRP
until/IN
they/PRP
heard/VBD
about/IN
it/PRP
in/IN
local/JJ
news/NN
accounts/NNS
over/IN
the/DT
weekend/NN
./.
Knight-Ridder/NNP
would/MD
n't/RB
comment/VB
on/IN
the/DT
offer/NN
./.
The/DT
company/NN
has/VBZ
said/VBD
the/DT
paper/NN
is/VBZ
n't/RB
for/IN
sale/NN
,/,
and/CC
has/VBZ
rebuffed/VBN
Mr./NNP
McMaster/NNP
's/POS
earlier/JJR
requests/NNS
for/IN
access/NN
to/TO
Free/NNP
Press/NNP
financial/JJ
statements/NNS
./.
In/IN
his/PRP$
letter/NN
to/TO
Knight-Ridder/NNP
President/NNP
James/NNP
K./NNP
Batten/NNP
,/,
Mr./NNP
McMaster/NNP
said/VBD
he/PRP
arrived/VBD
at/IN
the/DT
$/$
68/CD
million/CD
figure/NN
using/VBG
Knight-Ridder/NNP
's/POS
corporate/JJ
financial/JJ
statements/NNS
and/CC
comments/NNS
by/IN
Knight-Ridder/NNP
officials/NNS
that/IN
the/DT
Free/NNP
Press/NNP
has/VBZ
a/DT
$/$
50/CD
million/CD
value/NN
in/IN
salvage/NN
./.
But/CC
in/IN
an/DT
interview/NN
,/,
Mr./NNP
McMaster/NNP
said/VBD
he/PRP
and/CC
his/PRP$
investment/NN
banker/NN
would/MD
need/VB
access/NN
to/TO
full/JJ
financial/JJ
records/NNS
before/IN
firming/VBG
up/RP
the/DT
offer/NN
./.
Mitsui/NNP
&/CC
Co./NNP
said/VBD
it/PRP
started/VBD
a/DT
joint/JJ
venture/NN
with/IN
Dae/NNP
Woong/NNP
Chemical/NNP
Co./NNP
,/,
a/DT
major/JJ
pharmaceutical/JJ
manufacturer/NN
in/IN
South/NNP
Korea/NNP
,/,
to/TO
manufacture/VB
antibiotic/JJ
medicines/NNS
./.
The/DT
new/JJ
company/NN
is/VBZ
capitalized/VBN
at/IN
about/RB
$/$
3.5/CD
million/CD
./.
Mitsui/NNS
expects/VBZ
the/DT
antibiotic/JJ
products/NNS
to/TO
be/VB
exported/VBN
to/TO
Southeast/NNP
Asia/NNP
and/CC
Africa/NNP
./.
It/PRP
also/RB
hopes/VBZ
to/TO
enter/VB
the/DT
U.S./NNP
market/NN
./.
NRM/NNP
Energy/NNP
Co./NNP
said/VBD
it/PRP
filed/VBD
materials/NNS
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
calling/VBG
for/IN
it/PRP
to/TO
restructure/VB
into/IN
a/DT
corporation/NN
from/IN
a/DT
limited/VBN
partnership/NN
./.
The/DT
partnership/NN
said/VBD
it/PRP
is/VBZ
proposing/VBG
the/DT
change/NN
largely/RB
because/IN
the/DT
provisions/NNS
of/IN
its/PRP$
senior/JJ
notes/NNS
restrict/VBP
it/PRP
from/IN
making/VBG
distributions/NNS
on/IN
its/PRP$
units/NNS
outstanding/JJ
./.
NRM/NNP
suspended/VBD
its/PRP$
common/JJ
distribution/NN
in/IN
June/NNP
1988/CD
and/CC
the/DT
distribution/NN
on/IN
its/PRP$
$/$
2/CD
cumulative/JJ
convertible/JJ
acquisition/NN
preferred/VBN
units/NNS
in/IN
September/NNP
./.
However/RB
,/,
unpaid/JJ
distributions/NNS
on/IN
the/DT
acquisition/NN
preferred/VBN
are/VBP
cumulative/JJ
and/CC
would/MD
total/VB
$/$
23/CD
million/CD
a/DT
year/NN
,/,
hurting/VBG
NRM/NNP
's/POS
financial/JJ
flexibility/NN
and/CC
its/PRP$
ability/NN
to/TO
raise/VB
capital/NN
,/,
NRM/NNP
said/VBD
./.
In/IN
following/VBG
several/JJ
other/JJ
oil/NN
and/CC
gas/NN
partnerships/NNS
that/WDT
have/VBP
made/VBN
the/DT
conversion/NN
to/TO
a/DT
corporation/NN
in/IN
the/DT
last/JJ
year/NN
,/,
NRM/NNP
also/RB
noted/VBD
that/IN
tax/NN
advantages/NNS
for/IN
partnerships/NNS
have/VBP
diminished/VBN
under/IN
new/JJ
tax/NN
laws/NNS
and/CC
said/VBD
it/PRP
would/MD
save/VB
$/$
2/CD
million/CD
a/DT
year/NN
in/IN
administrative/JJ
costs/NNS
from/IN
the/DT
change/NN
./.
Under/IN
the/DT
plan/NN
,/,
NRM/NNP
said/VBD
holders/NNS
of/IN
its/PRP$
common/JJ
units/NNS
will/MD
receive/VB
one/CD
share/NN
of/IN
new/JJ
common/JJ
stock/NN
in/IN
Edisto/NNP
Resources/NNP
Corp./NNP
for/IN
every/DT
14.97/CD
common/JJ
units/NNS
owned/VBN
./.
Holders/NNS
of/IN
NRM/NNP
's/POS
$/$
2/CD
cumulative/JJ
convertible/JJ
acquisition/NN
preferred/VBD
units/NNS
will/MD
receive/VB
one/CD
new/JJ
common/JJ
share/NN
in/IN
Edisto/NNP
for/IN
every/DT
1.342/CD
units/NNS
they/PRP
own/VBP
./.
After/IN
the/DT
transaction/NN
,/,
current/JJ
common/JJ
unitholders/NNS
will/MD
own/VB
about/RB
21.3/CD
%/NN
of/IN
Edisto/NNP
,/,
current/JJ
acquisition/NN
preferred/VBD
holders/NNS
will/MD
own/VB
72.3/CD
%/NN
,/,
and/CC
current/JJ
stockholders/NNS
of/IN
Edisto/NNP
will/MD
own/VB
about/RB
6.4/CD
%/NN
,/,
about/RB
the/DT
same/JJ
stake/NN
as/IN
Edisto/NNP
owns/VBZ
now/RB
in/IN
NRM/NNP
./.
Edisto/NNP
currently/RB
is/VBZ
the/DT
general/JJ
partner/NN
of/IN
NRM/NNP
./.
As/IN
the/DT
largest/JJS
holder/NN
of/IN
acquisition/NN
preferred/VBG
units/NNS
,/,
Mesa/NNP
Limited/NNP
Partnership/NNP
would/MD
own/VB
about/RB
28/CD
%/NN
of/IN
Edisto/NNP
after/IN
the/DT
transaction/NN
./.
As/IN
part/NN
of/IN
the/DT
transaction/NN
,/,
Edisto/NNP
agreed/VBD
to/TO
give/VB
Mesa/NNP
,/,
an/DT
Amarillo/NNP
,/,
Texas/NNP
,/,
oil/NN
and/CC
gas/NN
partnership/NN
managed/VBN
by/IN
T./NNP
Boone/NNP
Pickens/NNP
Jr./NNP
,/,
a/DT
seat/NN
on/IN
its/PRP$
board/NN
./.
NRM/NNP
said/VBD
its/PRP$
$/$
2.60/CD
senior/JJ
cumulative/JJ
convertible/JJ
preferred/VBN
units/NNS
will/MD
be/VB
converted/VBN
into/IN
an/DT
equal/JJ
number/NN
of/IN
shares/NNS
of/IN
$/$
2.60/CD
senior/JJ
cumulative/JJ
convertible/NN
preferred/VBD
stock/NN
of/IN
Edisto/NNP
./.
The/DT
transaction/NN
is/VBZ
subject/JJ
to/TO
approval/NN
of/IN
NRM/NNP
unitholders/NNS
of/IN
record/NN
on/IN
Oct./NNP
23/CD
,/,
among/IN
other/JJ
conditions/NNS
./.
NRM/NNP
said/VBD
it/PRP
expects/VBZ
unitholders/NNS
to/TO
vote/VB
on/IN
the/DT
restructuring/NN
at/IN
a/DT
meeting/NN
Dec./NNP
15/CD
./.
Sherwin-Williams/NNP
Co./NNP
and/CC
Whittaker/NNP
Corp./NNP
said/VBD
they/PRP
've/VBP
discontinued/VBN
talks/NNS
toward/IN
a/DT
definitive/JJ
agreement/NN
regarding/VBG
Sherwin-Williams/NNP
'/POS
acquisition/NN
of/IN
Whittaker/NNP
's/POS
chemical/NN
coating/NN
group/NN
./.
The/DT
companies/NNS
reached/VBD
an/DT
agreement/NN
in/IN
principle/NN
for/IN
the/DT
sale/NN
in/IN
August/NNP
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Cleveland-based/JJ
Sherwin-Williams/NNP
produces/VBZ
paints/NNS
and/CC
coatings/NNS
,/,
while/IN
the/DT
Los/NNP
Angeles-based/JJ
Whittaker/NNP
coatings/NNS
group/NN
produces/VBZ
industrial/JJ
coatings/NNS
./.
USG/NNP
Corp./NNP
agreed/VBD
to/TO
sell/VB
its/PRP$
headquarters/NNS
building/NN
here/RB
to/TO
Manufacturers/NNP
Life/NNP
Insurance/NNP
Co./NNP
of/IN
Toronto/NNP
,/,
and/CC
will/MD
lease/VB
the/DT
19-story/JJ
facility/NN
until/IN
it/PRP
moves/VBZ
to/TO
a/DT
new/JJ
quarters/NNS
in/IN
1992/CD
./.
The/DT
building-materials/NNS
concern/NN
did/VBD
n't/RB
disclose/VB
terms/NNS
of/IN
the/DT
sale/NN
,/,
which/WDT
will/MD
close/VB
in/IN
the/DT
first/JJ
quarter/NN
of/IN
next/JJ
year/NN
./.
Proceeds/NNS
from/IN
the/DT
planned/VBN
sale/NN
of/IN
the/DT
250,000-square-foot/JJ
building/NN
``/``
will/MD
help/VB
reduce/VB
the/DT
debt/NN
incurred/VBN
as/IN
a/DT
result/NN
of/IN
our/PRP$
July/NNP
1988/CD
recapitalization/NN
,/,
''/''
said/VBD
a/DT
USG/NNP
official/NN
./.
The/DT
recently/RB
revived/VBN
enthusiasm/NN
among/IN
small/JJ
investors/NNS
for/IN
stock/NN
mutual/JJ
funds/NNS
has/VBZ
been/VBN
damped/VBN
by/IN
a/DT
jittery/JJ
stock/NN
market/NN
and/CC
the/DT
tumult/NN
over/IN
program/NN
trading/NN
./.
After/IN
hitting/VBG
two-year/JJ
highs/NNS
this/DT
summer/NN
,/,
net/JJ
sales/NNS
of/IN
stock/NN
funds/NNS
slowed/VBD
in/IN
September/NNP
,/,
according/VBG
to/TO
the/DT
Investment/NNP
Company/NNP
Institute/NNP
,/,
a/DT
trade/NN
group/NN
./.
The/DT
sales/NNS
recovery/NN
screeched/VBD
to/TO
a/DT
halt/NN
this/DT
month/NN
,/,
some/DT
analysts/NNS
say/VBP
./.
``/``
Confidence/NN
was/VBD
starting/VBG
to/TO
come/VB
back/RB
because/IN
we/PRP
did/VBD
n't/RB
have/VB
wildly/RB
volatile/JJ
days/NNS
,/,
''/''
says/VBZ
Tyler/NNP
Jenks/NNP
,/,
research/NN
director/NN
for/IN
Kanon/NNP
Bloch/NNP
Carre/NNP
&/CC
Co./NNP
,/,
a/DT
Boston/NNP
research/NN
firm/NN
./.
``/``
Now/RB
everything/NN
''/''
--/:
such/JJ
as/IN
program/NN
trading/NN
and/CC
wide/JJ
stock/NN
market/NN
swings/NNS
--/:
``/``
that/IN
everyone/NN
had/VBD
pushed/VBN
back/RB
in/IN
their/PRP$
consciousness/NN
is/VBZ
just/RB
sitting/VBG
right/RB
there/RB
./.
''/''
Net/JJ
sales/NNS
of/IN
stock/NN
funds/NNS
in/IN
September/NNP
totaled/VBD
$/$
839.4/CD
million/CD
,/,
down/RB
from/IN
$/$
1.1/CD
billion/CD
in/IN
August/NNP
,/,
the/DT
institute/NN
said/VBD
./.
But/CC
if/IN
reinvested/VBN
dividends/NNS
are/VBP
excluded/VBN
,/,
investors/NNS
put/VBD
in/RB
only/RB
$/$
340/CD
million/CD
more/JJR
than/IN
they/PRP
pulled/VBD
out/RB
for/IN
the/DT
month/NN
./.
October/NNP
's/POS
numbers/NNS
,/,
which/WDT
wo/MD
n't/RB
be/VB
released/VBN
for/IN
a/DT
month/NN
,/,
are/VBP
down/RB
further/RB
,/,
mutual/JJ
fund/NN
executives/NNS
say/VBP
./.
Investors/NNS
in/IN
stock/NN
funds/NNS
did/VBD
n't/RB
panic/VB
the/DT
weekend/NN
after/IN
mid-October/JJ
's/POS
190-point/NN
market/NN
plunge/NN
./.
Most/JJS
of/IN
the/DT
those/DT
who/WP
left/VBD
stock/NN
funds/NNS
simply/RB
switched/VBD
into/IN
money/NN
market/NN
funds/NNS
./.
And/CC
some/DT
fund/NN
groups/NNS
said/VBD
investors/NNS
actually/RB
became/VBD
net/JJ
buyers/NNS
./.
But/CC
the/DT
stock/NN
market/NN
swings/NNS
have/VBP
continued/VBN
./.
The/DT
recent/JJ
outcry/NN
over/IN
program/NN
trading/NN
will/MD
cast/VB
a/DT
pall/NN
over/IN
the/DT
stock-fund/NN
environment/NN
in/IN
the/DT
coming/JJ
months/NNS
,/,
some/DT
analysts/NNS
say/VBP
./.
``/``
The/DT
public/NN
is/VBZ
very/RB
close/RB
to/TO
having/VBG
had/VBD
it/PRP
,/,
''/''
Mr./NNP
Jenks/NNP
says/VBZ
./.
Investors/NNS
pulled/VBD
back/RB
from/IN
bond/NN
funds/NNS
in/IN
September/NNP
,/,
too/RB
./.
Net/JJ
sales/NNS
of/IN
bond/NN
funds/NNS
for/IN
the/DT
month/NN
totaled/VBD
$/$
1.1/CD
billion/CD
,/,
down/RB
two-thirds/NNS
from/IN
$/$
3.1/CD
billion/CD
in/IN
August/NNP
./.
The/DT
major/JJ
reason/NN
:/:
heavy/NN
outflows/NNS
from/IN
high-risk/JJ
,/,
high-yield/JJ
junk/NN
bond/NN
funds/NNS
./.
Big/JJ
withdrawals/NNS
from/IN
the/DT
junk/NN
funds/NNS
have/VBP
continued/VBN
this/DT
month/NN
./.
Overall/JJ
,/,
net/JJ
sales/NNS
of/IN
all/DT
mutual/JJ
funds/NNS
,/,
excluding/VBG
money/NN
market/NN
funds/NNS
,/,
fell/VBD
to/TO
$/$
1.9/CD
billion/CD
in/IN
September/NNP
from/IN
$/$
4.2/CD
billion/CD
in/IN
August/NNP
,/,
the/DT
trade/NN
group/NN
said/VBD
./.
``/``
Small/JJ
net/JJ
inflows/NNS
into/IN
stock/NN
and/CC
bond/NN
funds/NNS
were/VBD
offset/VBN
by/IN
slight/JJ
declines/NNS
in/IN
the/DT
value/NN
of/IN
mutual/JJ
fund/NN
stock/NN
and/CC
bond/NN
portfolios/NNS
''/''
stemming/VBG
from/IN
falling/VBG
prices/NNS
,/,
said/VBD
Jacob/NNP
Dreyer/NNP
,/,
the/DT
institute/NN
's/POS
chief/JJ
economist/NN
./.
Many/JJ
small/JJ
investors/NNS
went/VBD
for/IN
the/DT
safety/NN
of/IN
money/NN
market/NN
funds/NNS
./.
Assets/NNS
of/IN
these/DT
and/CC
other/JJ
short-term/JJ
funds/NNS
surged/VBD
more/RBR
than/IN
$/$
5/CD
billion/CD
in/IN
September/NNP
,/,
the/DT
institute/NN
said/VBD
./.
Analysts/NNS
say/VBP
additional/JJ
investors/NNS
transferred/VBD
their/PRP$
assets/NNS
into/IN
money/NN
funds/NNS
this/DT
month/NN
./.
At/IN
Fidelity/NNP
Investments/NNP
,/,
the/DT
nation/NN
's/POS
largest/JJS
fund/NN
group/NN
,/,
money/NN
funds/NNS
continue/VBP
to/TO
draw/VB
the/DT
most/JJS
business/NN
,/,
says/VBZ
Michael/NNP
Hines/NNP
,/,
vice/NN
president/NN
,/,
marketing/NN
./.
In/IN
October/NNP
,/,
net/JJ
sales/NNS
of/IN
stock/NN
funds/NNS
at/IN
Fidelity/NNP
dropped/VBD
sharply/RB
,/,
Mr./NNP
Hines/NNP
said/VBD
./.
But/CC
he/PRP
emphasized/VBD
that/IN
new/JJ
accounts/NNS
,/,
new/JJ
sales/NNS
,/,
inquiries/NNS
and/CC
subsequent/JJ
sales/NNS
of/IN
stock/NN
funds/NNS
are/VBP
all/DT
up/RB
this/DT
month/NN
from/IN
September/NNP
's/POS
level/NN
./.
Investor/NN
interest/NN
in/IN
stock/NN
funds/NNS
``/``
has/VBZ
n't/RB
stalled/VBN
at/IN
all/DT
,/,
''/''
Mr./NNP
Hines/NNP
maintains/VBZ
./.
He/PRP
notes/VBZ
that/IN
most/JJS
of/IN
the/DT
net/JJ
sales/NNS
drop/NN
stemmed/VBD
from/IN
a/DT
three-day/JJ
period/NN
following/VBG
the/DT
Friday/NNP
the/DT
13th/JJ
plunge/NN
./.
``/``
If/IN
that/DT
follows/VBZ
through/RP
next/JJ
month/NN
,/,
then/RB
it/PRP
will/MD
be/VB
a/DT
different/JJ
story/NN
,/,
''/''
he/PRP
says/VBZ
./.
But/CC
,/,
Mr./NNP
Hines/NNP
adds/VBZ
,/,
sales/NNS
``/``
based/VBN
on/IN
a/DT
few/JJ
days/NNS
'/POS
events/NNS
do/VBP
n't/RB
tell/VB
you/PRP
much/JJ
about/IN
October/NNP
's/POS
trends/NNS
./.
''/''
One/CD
trend/NN
that/WDT
continues/VBZ
is/VBZ
growth/NN
in/IN
the/DT
money/NN
invested/VBN
in/IN
funds/NNS
./.
Buoyed/VBN
by/IN
the/DT
continued/VBN
inflows/NNS
into/IN
money/NN
funds/NNS
,/,
assets/NNS
of/IN
all/DT
mutual/JJ
funds/NNS
swelled/VBD
to/TO
a/DT
record/NN
$/$
953.8/CD
billion/CD
in/IN
September/NNP
,/,
up/RB
fractionally/RB
from/IN
$/$
949.3/CD
billion/CD
in/IN
August/NNP
./.
Stock-fund/NN
managers/NNS
,/,
meantime/RB
,/,
went/VBD
into/IN
October/NNP
with/IN
less/JJR
cash/NN
on/IN
hand/NN
than/IN
they/PRP
held/VBD
earlier/RBR
this/DT
year/NN
./.
These/DT
managers/NNS
held/VBD
9.8/CD
%/NN
of/IN
assets/NNS
in/IN
cash/NN
at/IN
the/DT
end/NN
of/IN
September/NNP
,/,
down/RB
from/IN
10.2/CD
%/NN
in/IN
August/NNP
and/CC
10.6/CD
%/NN
in/IN
September/NNP
1988/CD
./.
Large/JJ
cash/NN
positions/NNS
help/VBP
buffer/VB
funds/NNS
from/IN
market/NN
declines/NNS
but/CC
can/MD
cut/VB
down/RP
on/IN
gains/NNS
in/IN
rising/VBG
markets/NNS
./.
Managers/NNS
of/IN
junk/NN
funds/NNS
were/VBD
bolstering/VBG
their/PRP$
cash/NN
hoards/NNS
after/IN
the/DT
September/NNP
cash/NN
crunch/NN
at/IN
Campeau/NNP
Corp/NNP
./.
Junk-portfolio/NN
managers/NNS
raised/VBD
their/PRP$
cash/NN
position/NN
to/TO
9.4/CD
%/NN
of/IN
assets/NNS
in/IN
September/NNP
from/IN
8.3/CD
%/NN
in/IN
August/NNP
./.
In/IN
September/NNP
1988/CD
,/,
that/DT
level/NN
was/VBD
9.5/CD
%/NN
./.
Investors/NNS
in/IN
all/DT
funds/NNS
will/MD
seek/VB
safety/NN
in/IN
the/DT
coming/JJ
months/NNS
,/,
some/DT
analysts/NNS
say/VBP
./.
Among/IN
stock/NN
funds/NNS
,/,
the/DT
conservative/JJ
growth-and-income/JJ
portfolios/NNS
probably/RB
will/MD
remain/VB
popular/JJ
,/,
fund/NN
specialists/NNS
say/VBP
./.
``/``
There/EX
will/MD
be/VB
a/DT
continuation/NN
and/CC
possibly/RB
greater/JJR
focus/NN
on/IN
conservative/JJ
equity/NN
funds/NNS
,/,
at/IN
the/DT
expense/NN
of/IN
growth/NN
and/CC
aggressive/JJ
growth/NN
funds/NNS
,/,
''/''
says/VBZ
Avi/NNP
Nachmany/NNP
,/,
an/DT
analyst/NN
at/IN
Strategic/NNP
Insight/NNP
,/,
a/DT
New/NNP
York/NNP
fund-research/JJ
concern/NN
./.
Secretary/NNP
of/IN
State/NNP
Baker/NNP
,/,
we/PRP
read/VBP
,/,
decided/VBD
to/TO
kill/VB
a/DT
speech/NN
that/IN
Robert/NNP
Gates/NNP
,/,
deputy/JJ
national/JJ
security/NN
adviser/NN
and/CC
a/DT
career/NN
Soviet/NNP
expert/NN
,/,
was/VBD
going/VBG
to/TO
give/VB
to/TO
a/DT
student/NN
colloquium/NN
,/,
the/DT
National/NNP
Collegiate/NNP
Security/NNP
Conference/NNP
./.
We/PRP
keep/VBP
wondering/VBG
what/WP
Mr./NNP
Gates/NNP
wanted/VBD
to/TO
say/VB
./.
Perhaps/RB
he/PRP
might/MD
have/VB
cited/VBN
Mr./NNP
Gorbachev/NNP
's/POS
need/NN
for/IN
``/``
a/DT
stable/JJ
currency/NN
,/,
free/JJ
and/CC
competitive/JJ
markets/NNS
,/,
private/JJ
property/NN
and/CC
real/JJ
prices/NNS
''/''
and/CC
other/JJ
pie-in-the-sky/NN
reforms/NNS
./.
Perhaps/RB
he/PRP
'd/MD
have/VB
called/VBD
for/IN
``/``
a/DT
decentralized/VBN
political/JJ
and/CC
economic/JJ
system/NN
''/''
without/IN
a/DT
dominant/JJ
communist/JJ
party/NN
./.
Or/CC
political/JJ
arrangements/NNS
``/``
to/TO
alleviate/VB
the/DT
grievances/NNS
and/CC
demands/NNS
of/IN
Soviet/NNP
ethnic/JJ
minorities/NNS
and/CC
republics/NNS
./.
''/''
Why/WRB
,/,
a/DT
Bob/NNP
Gates/NNP
might/MD
even/RB
have/VB
said/VBD
,/,
``/``
Nor/CC
are/VBP
Soviet/NNP
problems/NNS
susceptible/JJ
to/TO
rescue/NN
from/IN
abroad/RB
through/IN
abundant/JJ
Western/JJ
credits/NNS
./.
''/''
If/IN
Mr./NNP
Gates/NNP
had/VBD
been/VBN
allowed/VBN
to/TO
say/VB
these/DT
things/NNS
,/,
we/PRP
would/MD
now/RB
be/VB
hearing/VBG
about/IN
``/``
discord/NN
''/''
and/CC
``/``
disarray/NN
''/''
on/IN
foreign/JJ
policy/NN
./.
Dark/JJ
hints/NNS
would/MD
be/VB
raised/VBN
that/IN
parts/NNS
of/IN
the/DT
administration/NN
hope/VBP
Mr./NNP
Gorbachev/NNP
would/MD
fail/VB
,/,
just/RB
as/IN
they/PRP
were/VBD
when/WRB
Vice/NNP
President/NNP
Quayle/NNP
voiced/VBD
similar/JJ
sentiments/NNS
./.
It/PRP
's/VBZ
somehow/RB
OK/JJ
for/IN
Secretary/NNP
Baker/NNP
himself/PRP
,/,
however/RB
,/,
to/TO
say/VB
all/DT
the/DT
same/JJ
things/NNS
./.
In/IN
fact/NN
,/,
he/PRP
did/VBD
;/:
the/DT
quotes/NNS
above/RB
are/VBP
from/IN
Mr./NNP
Baker/NNP
's/POS
speech/NN
of/IN
two/CD
weeks/NNS
ago/RB
./.
So/RB
far/RB
as/IN
we/PRP
can/MD
see/VB
,/,
there/EX
is/VBZ
no/DT
disagreement/NN
among/IN
Mr./NNP
Baker/NNP
,/,
Mr./NNP
Quayle/NNP
,/,
the/DT
Mr./NNP
Gates/NNP
we/PRP
've/VBP
read/VBN
,/,
or/CC
for/IN
that/DT
matter/NN
President/NNP
Bush/NNP
./.
They/PRP
all/DT
understand/VBP
point/NN
one/CD
:/:
Nothing/NN
the/DT
U.S./NNP
can/MD
do/VB
will/MD
make/VB
much/JJ
difference/NN
in/IN
whether/IN
Mr./NNP
Gorbachev/NNP
succeeds/VBZ
with/IN
perestroika/FW
./.
Perhaps/RB
Mr./NNP
Gates/NNP
would/MD
emphasize/VB
more/RBR
than/IN
Mr./NNP
Baker/NNP
the/DT
many/JJ
hurdles/NNS
the/DT
Soviet/JJ
leader/NN
must/MD
leap/VB
if/IN
he/PRP
is/VBZ
going/VBG
to/TO
succeed/VB
./.
But/CC
everyone/NN
agrees/VBZ
that/IN
Mr./NNP
Gorbachev/NNP
's/POS
problems/NNS
result/VBP
from/IN
the/DT
failure/NN
of/IN
his/PRP$
own/JJ
system/NN
./.
They/PRP
can/MD
be/VB
relieved/VBN
only/RB
by/IN
changing/VBG
that/DT
system/NN
,/,
not/RB
by/IN
pouring/VBG
Western/JJ
money/NN
into/IN
it/PRP
./.
GATT/NNP
membership/NN
will/MD
not/RB
matter/VB
to/TO
Donbas/NNP
coal/NN
miners/NNS
short/JJ
of/IN
soap/NN
,/,
nor/CC
will/MD
a/DT
START/NNP
treaty/NN
make/VBP
any/DT
difference/NN
to/TO
Ukrainian/JJ
nationalists/NNS
./.
On/IN
the/DT
other/JJ
hand/NN
,/,
so/RB
long/RB
as/IN
Mr./NNP
Gorbachev/NNP
is/VBZ
easing/VBG
his/PRP$
grip/NN
on/IN
his/PRP$
empire/NN
,/,
everyone/NN
we/PRP
've/VBP
heard/VBN
agrees/VBZ
that/IN
the/DT
U.S./NNP
can/MD
benefit/VB
by/IN
engaging/VBG
him/PRP
./.
If/IN
a/DT
deal/NN
can/MD
be/VB
made/VBN
to/TO
cut/VB
the/DT
world/NN
's/POS
Ortegas/NNPS
loose/RB
from/IN
Moscow/NNP
,/,
why/WRB
not/RB
?/.
We/PRP
do/VBP
n't/RB
expect/VB
much/JJ
good/NN
from/IN
nuclear-arms/NNS
control/NN
,/,
but/CC
conventional-arms/NNS
talks/NNS
might/MD
demilitarize/VB
Eastern/NNP
Europe/NNP
./.
There/EX
's/VBZ
nothing/NN
in/IN
the/DT
least/JJS
contradictory/NN
in/IN
all/DT
this/DT
,/,
and/CC
it/PRP
would/MD
be/VB
nice/JJ
to/TO
think/VB
that/IN
Washington/NNP
could/MD
tolerate/VB
a/DT
reasonably/RB
sophisticated/JJ
,/,
complex/JJ
view/NN
./.
Yet/RB
much/JJ
of/IN
the/DT
political/JJ
culture/NN
seems/VBZ
intent/NN
on/IN
castigating/VBG
the/DT
Bush/NNP
administration/NN
for/IN
not/RB
``/``
helping/VBG
''/''
Mr./NNP
Gorbachev/NNP
./.
So/IN
every/DT
time/NN
a/DT
Bush/NNP
official/NN
raises/VBZ
a/DT
doubt/NN
about/IN
Mr./NNP
Gorbachev/NNP
,/,
the/DT
Washington/NNP
community/NN
shouts/VBZ
``/``
Cold/NNP
War/NNP
''/''
and/CC
``/``
timidity/NN
,/,
''/''
and/CC
an/DT
administration/NN
spokesman/NN
is/VBZ
quickly/RB
trotted/VBN
out/RB
to/TO
reply/VB
,/,
``/``
Mr./NNP
Bush/NNP
wants/VBZ
perestroika/FW
to/TO
succeed/VB
./.
''/''
Mr./NNP
Baker/NNP
seems/VBZ
especially/RB
sensitive/JJ
to/TO
the/DT
Washington/NNP
ailment/NN
known/VBN
as/IN
Beltway-itis/NN
./.
Its/PRP$
symptoms/NNS
include/VBP
a/DT
cold/JJ
sweat/NN
at/IN
the/DT
sound/NN
of/IN
debate/NN
,/,
clammy/JJ
hands/NNS
in/IN
the/DT
face/NN
of/IN
congressional/JJ
criticism/NN
,/,
and/CC
fainting/NN
spells/NNS
when/WRB
someone/NN
writes/VBZ
the/DT
word/NN
``/``
controversy/NN
./.
''/''
As/IN
one/CD
unidentified/JJ
official/NN
clearly/RB
in/IN
the/DT
late/JJ
stages/NNS
of/IN
the/DT
disease/NN
told/VBD
the/DT
Times/NNP
:/:
``/``
Baker/NNP
just/RB
felt/VBD
that/IN
there/EX
were/VBD
some/DT
lines/NNS
in/IN
the/DT
speech/NN
that/WDT
could/MD
be/VB
misinterpreted/VBN
and/CC
seized/VBN
by/IN
the/DT
press/NN
./.
''/''
In/IN
short/JJ
,/,
the/DT
problem/NN
is/VBZ
not/RB
intra-administration/JJ
disagreement/NN
,/,
but/CC
preoccupation/NN
with/IN
the/DT
prospect/NN
that/DT
perestrokia/NN
might/MD
fail/VB
,/,
and/CC
its/PRP$
political/JJ
opponents/NNS
will/MD
ask/VB
``/``
Who/WP
lost/VBD
Gorbachev/NNP
?/.
''/''
Mr./NNP
Baker/NNP
may/MD
want/VB
to/TO
avoid/VB
criticism/NN
from/IN
Senate/NNP
Majority/NNP
Leader/NNP
George/NNP
Mitchell/NNP
,/,
but/CC
as/IN
Secretary/NNP
of/IN
State/NNP
his/PRP$
audience/NN
is/VBZ
the/DT
entire/JJ
Free/JJ
World/NN
,/,
not/RB
just/RB
Congress/NNP
./.
In/IN
any/DT
case/NN
,/,
he/PRP
's/VBZ
likely/JJ
to/TO
find/VB
that/IN
the/DT
more/RBR
he/PRP
muzzles/VBZ
his/PRP$
colleagues/NNS
,/,
the/DT
more/JJR
leaks/NNS
will/MD
pop/VB
up/RP
all/DT
around/IN
Washington/NNP
,/,
a/DT
lesson/NN
once/RB
learned/VBN
by/IN
Henry/NNP
Kissinger/NNP
./.
Letting/VBG
officials/NNS
express/VB
their/PRP$
own/JJ
nuances/NNS
can/MD
be/VB
educational/JJ
./.
We/PRP
note/VBP
that/IN
in/IN
Rome/NNP
yesterday/NN
Defense/NNP
Secretary/NNP
Cheney/NNP
said/VBD
that/IN
European/JJ
euphoria/NN
over/IN
Mr./NNP
Gorbachev/NNP
is/VBZ
starting/VBG
to/TO
be/VB
tempered/VBN
by/IN
a/DT
recognition/NN
of/IN
``/``
the/DT
magnitude/NN
of/IN
the/DT
problems/NNS
he/PRP
was/VBD
trying/VBG
to/TO
deal/VB
with/IN
./.
''/''
It/PRP
is/VBZ
in/IN
the/DT
Western/JJ
interest/NN
to/TO
see/VB
Mr./NNP
Gorbachev/NNP
succeed/VB
./.
The/DT
odds/NNS
are/VBP
against/IN
him/PRP
,/,
as/IN
he/PRP
himself/PRP
would/MD
no/RB
doubt/VB
tell/VB
you/PRP
./.
The/DT
ultimate/JJ
outcome/NN
depends/VBZ
on/IN
what/WP
he/PRP
does/VBZ
,/,
not/RB
on/IN
what/WP
we/PRP
do/VBP
./.
Even/RB
if/IN
the/DT
press/NN
is/VBZ
ready/JJ
to/TO
seize/VB
and/CC
misinterpret/VB
,/,
these/DT
are/VBP
not/RB
very/RB
complicated/VBN
thoughts/NNS
./.
Surely/RB
there/EX
is/VBZ
someone/NN
in/IN
the/DT
administration/NN
,/,
maybe/RB
Bob/NNP
Gates/NNP
,/,
who/WP
could/MD
explain/VB
them/PRP
to/TO
college/NN
students/NNS
,/,
or/CC
even/RB
schoolchildren/NNS
./.
Vernon/NNP
E./NNP
Jordan/NNP
was/VBD
elected/VBN
to/TO
the/DT
board/NN
of/IN
this/DT
transportation/NN
services/NNS
concern/NN
./.
Mr./NNP
Jordan/NNP
has/VBZ
served/VBN
as/IN
executive/JJ
director/NN
of/IN
the/DT
United/NNP
Negro/NNP
College/NNP
Fund/NNP
,/,
director/NN
of/IN
the/DT
Voter/NNP
Education/NNP
Project/NNP
of/IN
the/DT
Southern/NNP
Regional/NNP
Council/NNP
and/CC
attorney-consultant/NN
to/TO
the/DT
U.S./NNP
Office/NNP
of/IN
Economic/NNP
Opportunity/NNP
./.
His/PRP$
election/NN
increases/VBZ
Ryder/NNP
's/POS
board/NN
to/TO
14/CD
members/NNS
./.
The/DT
American/NNP
Stock/NNP
Exchange/NNP
said/VBD
a/DT
seat/NN
was/VBD
sold/VBN
for/IN
$/$
160,000/CD
,/,
down/RB
$/$
5,000/CD
from/IN
the/DT
previous/JJ
sale/NN
last/JJ
Friday/NNP
./.
Seats/NNS
are/VBP
currently/RB
quoted/VBN
at/IN
$/$
151,000/CD
,/,
bid/VBN
,/,
and/CC
$/$
162,000/CD
,/,
asked/VBN
./.
Two/CD
gunmen/NNS
entered/VBD
a/DT
Maryland/NNP
restaurant/NN
,/,
ordered/VBD
two/CD
employees/NNS
to/TO
lie/VB
on/IN
the/DT
floor/NN
and/CC
shot/VBD
them/PRP
in/IN
the/DT
backs/NNS
of/IN
their/PRP$
heads/NNS
./.
The/DT
killers/NNS
fled/VBD
with/IN
less/JJR
than/IN
$/$
100/CD
./.
Describing/VBG
this/DT
and/CC
other/JJ
grisly/JJ
killings/NNS
,/,
Sen./NNP
Strom/NNP
Thurmond/NNP
R./NNP
,/,
S.C/NNP
./.
fellow/JJ
lawmakers/NNS
to/TO
revive/VB
a/DT
broad/JJ
federal/JJ
death/NN
penalty/NN
./.
``/``
The/DT
ultimate/JJ
punishment/NN
,/,
''/''
he/PRP
declared/VBD
,/,
``/``
will/MD
protect/VB
the/DT
law-abiding/JJ
from/IN
the/DT
vicious/JJ
,/,
cruel/JJ
individuals/NNS
who/WP
commit/VBP
these/DT
crimes/NNS
./.
''/''
There/EX
's/VBZ
just/RB
one/CD
problem/NN
:/:
The/DT
law/NN
that/WDT
Sen./NNP
Thurmond/NNP
is/VBZ
pushing/VBG
would/MD
be/VB
irrelevant/JJ
in/IN
the/DT
case/NN
of/IN
the/DT
Maryland/NNP
restaurant/NN
murders/NNS
and/CC
almost/RB
all/DT
other/JJ
killings/NNS
./.
Most/JJS
murders/NNS
are/VBP
state/NN
crimes/NNS
,/,
so/IN
any/DT
federal/JJ
capital-punishment/NN
law/NN
probably/RB
would/MD
turn/VB
out/RP
to/TO
be/VB
more/JJR
symbolism/NN
than/IN
substance/NN
./.
Yet/RB
the/DT
bill/NN
is/VBZ
riding/VBG
high/JJ
on/IN
the/DT
furor/NN
over/IN
drug/NN
trafficking/NN
./.
Senate/NNP
Republicans/NNP
,/,
after/IN
repeatedly/RB
failing/VBG
to/TO
attach/VB
death-penalty/JJ
amendments/NNS
to/TO
unrelated/JJ
legislation/NN
,/,
have/VBP
finally/RB
gotten/VBN
a/DT
full-blown/JJ
death-penalty/NN
bill/NN
through/IN
committee/NN
./.
The/DT
Democratic/JJ
leadership/NN
agreed/VBD
to/TO
allow/VB
a/DT
floor/NN
vote/NN
on/IN
the/DT
issue/NN
before/IN
the/DT
end/NN
of/IN
the/DT
year/NN
--/:
a/DT
debate/NN
certain/JJ
to/TO
focus/VB
on/IN
the/DT
alleged/VBN
racial/JJ
inequality/NN
of/IN
death/NN
sentencing/NN
./.
Even/RB
some/DT
Democrats/NNS
concede/VBP
that/IN
there/EX
is/VBZ
probably/RB
a/DT
majority/NN
in/IN
the/DT
Senate/NNP
that/WDT
favors/VBZ
some/DT
kind/NN
of/IN
broad/JJ
capital-punishment/NN
measure/NN
./.
The/DT
pending/VBG
bill/NN
,/,
introduced/VBN
by/IN
Mr./NNP
Thurmond/NNP
,/,
would/MD
revive/VB
the/DT
long-dormant/JJ
federal/JJ
death-penalty/NN
laws/NNS
by/IN
instituting/VBG
legal/JJ
procedures/NNS
required/VBN
by/IN
the/DT
Supreme/NNP
Court/NNP
./.
In/IN
1972/CD
,/,
the/DT
high/JJ
court/NN
swept/VBD
aside/RB
all/DT
capital-punishment/NN
laws/NNS
--/:
federal/JJ
and/CC
state/NN
alike/RB
--/:
as/IN
unconstitutional/JJ
./.
But/CC
in/IN
1976/CD
,/,
the/DT
court/NN
permitted/VBD
resurrection/NN
of/IN
such/JJ
laws/NNS
,/,
if/IN
they/PRP
meet/VBP
certain/JJ
procedural/JJ
requirements/NNS
./.
For/IN
instance/NN
,/,
juries/NNS
would/MD
have/VB
to/TO
consider/VB
specific/JJ
``/``
aggravating/JJ
''/''
and/CC
``/``
mitigating/JJ
''/''
factors/NNS
before/IN
deciding/VBG
whether/IN
to/TO
condemn/VB
someone/NN
to/TO
death/NN
./.
Since/IN
that/DT
1976/CD
ruling/NN
,/,
37/CD
states/NNS
have/VBP
reintroduced/VBN
the/DT
death/NN
penalty/NN
./.
But/CC
congressional/JJ
Democrats/NNS
have/VBP
blocked/VBN
the/DT
same/JJ
from/IN
occurring/VBG
at/IN
the/DT
federal/JJ
level/NN
,/,
with/IN
the/DT
exception/NN
of/IN
a/DT
1988/CD
law/NN
allowing/VBG
capital/JJ
punishment/NN
for/IN
certain/JJ
drug-related/JJ
homicides/NNS
./.
The/DT
Thurmond/NNP
bill/NN
would/MD
establish/VB
a/DT
federally/RB
administered/VBN
death/NN
sentence/NN
for/IN
23/CD
crimes/NNS
,/,
most/JJS
of/IN
which/WDT
were/VBD
formerly/RB
punishable/JJ
by/IN
death/NN
under/IN
federal/JJ
statutes/NNS
that/IN
the/DT
Supreme/NNP
Court/NNP
invalidated/VBD
./.
Among/IN
these/DT
crimes/NNS
are/VBP
murder/NN
on/IN
federal/JJ
land/NN
,/,
presidential/JJ
assassination/NN
and/CC
espionage/NN
./.
The/DT
Thurmond/NNP
bill/NN
would/MD
also/RB
add/VB
five/CD
new/JJ
crimes/NNS
punishable/JJ
by/IN
death/NN
,/,
including/VBG
murder/NN
for/IN
hire/NN
./.
Separately/RB
,/,
the/DT
Senate/NNP
last/JJ
week/NN
passed/VBD
a/DT
bill/NN
permitting/VBG
execution/NN
of/IN
terrorists/NNS
who/WP
kill/VBP
Americans/NNS
abroad/RB
./.
Amid/IN
the/DT
swirl/NN
of/IN
punitive/JJ
rhetoric/NN
surrounding/VBG
the/DT
issue/NN
,/,
one/CD
critical/JJ
question/NN
involves/VBZ
whether/IN
a/DT
federal/JJ
death/NN
penalty/NN
,/,
on/IN
top/NN
of/IN
existing/VBG
state/NN
laws/NNS
,/,
would/MD
deter/VB
any/DT
would-be/JJ
criminals/NNS
./.
For/IN
one/CD
thing/NN
,/,
it/PRP
's/VBZ
unlikely/JJ
that/IN
many/JJ
people/NNS
would/MD
receive/VB
federal/JJ
death/NN
sentences/NNS
,/,
let/VB
alone/RB
be/VB
executed/VBN
./.
Most/JJS
of/IN
the/DT
crimes/NNS
incorporated/VBN
in/IN
the/DT
Thurmond/NNP
bill/NN
are/VBP
exceedingly/RB
rare/JJ
--/:
killing/VBG
a/DT
Supreme/NNP
Court/NNP
justice/NN
,/,
for/IN
instance/NN
,/,
or/CC
deliberately/RB
causing/VBG
a/DT
train/NN
wreck/NN
that/WDT
results/VBZ
in/IN
a/DT
death/NN
./.
In/IN
fact/NN
,/,
only/RB
28/CD
defendants/NNS
would/MD
have/VB
been/VBN
eligible/JJ
for/IN
federal/JJ
death/NN
sentences/NNS
if/IN
the/DT
Thurmond/NNP
bill/NN
had/VBD
been/VBN
in/IN
effect/NN
in/IN
the/DT
past/JJ
three/CD
years/NNS
,/,
according/VBG
to/TO
a/DT
study/NN
by/IN
the/DT
Senate/NNP
Judiciary/NNP
Committee/NNP
's/POS
Democratic/JJ
staff/NN
./.
The/DT
last/JJ
federal/JJ
execution/NN
before/IN
the/DT
Supreme/NNP
Court/NNP
's/POS
1972/CD
ruling/NN
banning/VBG
the/DT
death/NN
penalty/NN
took/VBD
place/NN
in/IN
1963/CD
,/,
meaning/VBG
that/IN
the/DT
federal/JJ
government/NN
did/VBD
n't/RB
exercise/VB
its/PRP$
execution/NN
authority/NN
for/IN
eight/CD
years/NNS
./.
``/``
In/IN
that/DT
sense/NN
,/,
the/DT
whole/JJ
debate/NN
is/VBZ
sort/NN
of/IN
a/DT
fraud/NN
,/,
''/''
argues/VBZ
a/DT
Democratic/JJ
Senate/NNP
staff/NN
member/NN
./.
``/``
It/PRP
's/VBZ
distracting/VBG
attention/NN
from/IN
serious/JJ
issues/NNS
,/,
like/IN
how/WRB
to/TO
make/VB
DEA/NNP
,/,
FBI/NNP
and/CC
Customs/NNP
work/VB
together/RB
''/''
on/IN
drug/NN
enforcement/NN
./.
Republicans/NNS
acknowledge/VBP
that/IN
few/JJ
people/NNS
would/MD
be/VB
executed/VBN
under/IN
the/DT
Thurmond/NNP
bill/NN
,/,
but/CC
they/PRP
contend/VBP
that/DT
is/VBZ
n't/RB
the/DT
point/NN
./.
``/``
Many/JJ
scholars/NNS
are/VBP
of/IN
the/DT
opinion/NN
that/IN
the/DT
mere/JJ
existence/NN
of/IN
the/DT
penalty/NN
deters/VBZ
many/JJ
people/NNS
from/IN
the/DT
commission/NN
of/IN
capital/JJ
crimes/NNS
,/,
''/''
says/VBZ
Sen./NNP
Orrin/NNP
Hatch/NNP
R./NNP
,/,
Utah/NNP
Executions/NNS
,/,
regardless/RB
of/IN
how/WRB
frequently/RB
they/PRP
occur/VBP
,/,
are/VBP
also/RB
``/``
proper/JJ
retribution/NN
''/''
for/IN
heinous/JJ
crimes/NNS
,/,
Mr./NNP
Hatch/NNP
argues/VBZ
./.
Thomas/NNP
Boyd/NNP
,/,
a/DT
senior/JJ
Justice/NNP
Department/NNP
official/NN
,/,
says/VBZ
the/DT
new/JJ
federal/JJ
drug-related/JJ
crimes/NNS
punishable/JJ
by/IN
death/NN
since/IN
last/JJ
November/NNP
may/MD
result/VB
in/IN
a/DT
jump/NN
in/IN
capital/JJ
sentences/NNS
,/,
though/IN
that/DT
has/VBZ
n't/RB
happened/VBN
so/RB
far/RB
./.
In/IN
addition/NN
to/TO
resuscitating/VBG
the/DT
old/JJ
issue/NN
of/IN
whether/IN
death/NN
sentences/NNS
deter/VBP
criminals/NNS
,/,
this/DT
bill/NN
has/VBZ
made/VBN
race/NN
a/DT
major/JJ
part/NN
of/IN
the/DT
death-penalty/NN
debate/NN
./.
Before/IN
the/DT
bill/NN
left/VBD
committee/NN
,/,
Sen./NNP
Edward/NNP
Kennedy/NNP
D./NNP
,/,
Mass/NNP
./.
an/DT
amendment/NN
that/WDT
would/MD
allow/VB
a/DT
defendant/NN
to/TO
escape/VB
from/IN
a/DT
death/NN
sentence/NN
in/IN
jurisdictions/NNS
shown/VBN
to/TO
have/VB
meted/VBN
out/RP
executions/NNS
in/IN
a/DT
racist/NN
manner/NN
./.
The/DT
amendment/NN
prompted/VBD
an/DT
ironic/JJ
protest/NN
from/IN
Mr./NNP
Thurmond/NNP
,/,
who/WP
complained/VBD
that/IN
it/PRP
would/MD
``/``
kill/VB
''/''
capital/JJ
punishment/NN
./.
A/DT
large/JJ
number/NN
of/IN
studies/NNS
suggest/VBP
that/IN
state/NN
judges/NNS
and/CC
juries/NNS
have/VBP
imposed/VBN
the/DT
penalty/NN
in/IN
a/DT
racially/RB
discriminatory/JJ
fashion/NN
./.
And/CC
the/DT
Kennedy/NNP
amendment/NN
would/MD
invade/VB
not/RB
only/RB
federal/JJ
but/CC
state/NN
sentencings/NNS
,/,
in/IN
two/CD
important/JJ
ways/NNS
./.
It/PRP
would/MD
allow/VB
all/DT
defendants/NNS
to/TO
introduce/VB
statistical/JJ
evidence/NN
showing/VBG
racially/RB
disproportionate/JJ
application/NN
of/IN
the/DT
death/NN
penalty/NN
in/IN
the/DT
past/NN
./.
And/CC
it/PRP
would/MD
shift/VB
the/DT
burden/NN
to/TO
prosecutors/NNS
to/TO
disprove/VB
that/IN
discrimination/NN
caused/VBD
any/DT
statistical/JJ
racial/JJ
disparities/NNS
./.
``/``
That/DT
burden/NN
is/VBZ
very/RB
difficult/JJ
,/,
if/IN
not/RB
impossible/JJ
,/,
to/TO
meet/VB
,/,
''/''
says/VBZ
Mr./NNP
Boyd/NNP
./.
``/``
How/WRB
do/VB
you/PRP
prove/VBP
a/DT
negative/NN
?/.
''/''
Since/IN
most/JJS
prosecutors/NNS
would/MD
n't/RB
be/VB
able/JJ
to/TO
demonstrate/VB
conclusively/RB
that/IN
racial/JJ
considerations/NNS
did/VBD
n't/RB
affect/VB
sentencing/VBG
,/,
executions/NNS
everywhere/RB
might/MD
come/VB
to/TO
a/DT
halt/NN
,/,
Mr./NNP
Boyd/NNP
explains/VBZ
./.
At/IN
least/JJS
15/CD
major/JJ
studies/NNS
purport/VBP
to/TO
show/VB
that/IN
particular/JJ
states/NNS
have/VBP
imposed/VBN
the/DT
death/NN
penalty/NN
disproportionately/RB
against/IN
killers/NNS
of/IN
whites/NNS
compared/VBN
with/IN
blacks/NNS
,/,
and/CC
against/IN
black/JJ
defendants/NNS
compared/VBN
with/IN
white/JJ
defendants/NNS
./.
Conservatives/NNS
question/VBP
the/DT
validity/NN
of/IN
the/DT
studies/NNS
and/CC
note/VBP
that/IN
the/DT
Supreme/NNP
Court/NNP
ruled/VBD
in/IN
1987/CD
that/IN
such/JJ
research/NN
,/,
regardless/RB
of/IN
its/PRP$
accuracy/NN
,/,
is/VBZ
n't/RB
relevant/JJ
to/TO
a/DT
constitutional/JJ
attack/NN
on/IN
a/DT
particular/JJ
death/NN
sentence/NN
./.
The/DT
Kennedy/NNP
amendment/NN
would/MD
,/,
in/IN
effect/NN
,/,
legislate/VB
around/IN
the/DT
Supreme/NNP
Court/NNP
ruling/NN
./.
Lawyers/NNS
would/MD
eagerly/RB
seize/VB
on/IN
the/DT
provision/NN
in/IN
their/PRP$
death-penalty/NN
appeals/NNS
,/,
says/VBZ
Richard/NNP
Burr/NNP
,/,
director/NN
of/IN
the/DT
NAACP/NNP
Legal/NNP
Defense/NNP
and/CC
Educational/NNP
Fund/NNP
's/POS
capital-punishment/NN
defense/NN
team/NN
./.
Mr./NNP
Kennedy/NNP
failed/VBD
to/TO
get/VB
his/PRP$
amendment/NN
incorporated/VBN
into/IN
last/JJ
year/NN
's/POS
anti-drug/JJ
legislation/NN
,/,
and/CC
it/PRP
will/MD
be/VB
severely/RB
attacked/VBN
on/IN
the/DT
Senate/NNP
floor/NN
this/DT
time/NN
around/RP
./.
But/CC
if/IN
it/PRP
survives/VBZ
,/,
it/PRP
could/MD
prompt/VB
other/JJ
statutory/JJ
changes/NNS
,/,
according/VBG
to/TO
the/DT
Mr./NNP
Burr/NNP
./.
It/PRP
might/MD
force/VB
Congress/NNP
and/CC
the/DT
states/NNS
to/TO
narrow/VB
the/DT
death/NN
penalty/NN
only/RB
to/TO
convictions/NNS
shown/VBN
to/TO
be/VB
relatively/RB
free/JJ
of/IN
racial/JJ
imbalance/NN
--/:
murders/NNS
by/IN
repeat/NN
offenders/NNS
who/WP
torture/VBP
their/PRP$
victims/NNS
,/,
perhaps/RB
./.
Narrowing/VBG
the/DT
penalty/NN
in/IN
this/DT
fashion/NN
would/MD
clearly/RB
reduce/VB
whatever/WDT
deterrent/NN
effect/NN
it/PRP
now/RB
has/VBZ
./.
And/CC
that/DT
,/,
in/IN
turn/NN
,/,
would/MD
only/RB
strengthen/VB
the/DT
argument/NN
of/IN
those/DT
who/WP
oppose/VBP
execution/NN
under/IN
any/DT
circumstances/NNS
./.
A/DT
state/NN
judge/NN
postponed/VBD
a/DT
decision/NN
on/IN
a/DT
move/NN
by/IN
holders/NNS
of/IN
Telerate/NNP
Inc./NNP
to/TO
block/VB
the/DT
tender/NN
offer/NN
of/IN
Dow/NNP
Jones/NNP
&/CC
Co./NNP
for/IN
the/DT
33/CD
%/NN
of/IN
Telerate/NNP
it/PRP
does/VBZ
n't/RB
already/RB
own/VB
./.
Vice/NNP
Chancellor/NNP
Maurice/NNP
A./NNP
Hartnett/NNP
III/NNP
of/IN
Delaware/NNP
's/POS
Court/NNP
of/IN
Chancery/NNP
heard/VBD
arguments/NNS
for/IN
more/JJR
than/IN
two/CD
hours/NNS
here/RB
,/,
but/CC
he/PRP
made/VBD
no/DT
comment/NN
and/CC
asked/VBD
no/DT
questions/NNS
./.
He/PRP
could/MD
rule/VB
as/RB
early/RB
as/IN
today/NN
on/IN
the/DT
motion/NN
seeking/VBG
a/DT
temporary/JJ
injunction/NN
against/IN
the/DT
Dow/NNP
Jones/NNP
offer/NN
./.
Dow/NNP
Jones/NNP
has/VBZ
offered/VBN
to/TO
pay/VB
$/$
18/CD
a/DT
share/NN
,/,
or/CC
about/RB
$/$
576/CD
million/CD
,/,
for/IN
the/DT
remaining/VBG
Telerate/NNP
stake/NN
./.
The/DT
offer/NN
will/MD
expire/VB
at/IN
5/CD
p.m./NN
EST/NNP
on/IN
Nov./NNP
6/CD
,/,
unless/IN
extended/VBN
again/RB
./.
Robert/NNP
Kornreich/NNP
,/,
an/DT
attorney/NN
for/IN
the/DT
Telerate/NNP
holders/NNS
,/,
told/VBD
Judge/NNP
Hartnett/NNP
the/DT
Dow/NNP
Jones/NNP
offer/NN
is/VBZ
``/``
arrogant/JJ
''/''
and/CC
``/``
hostile/JJ
./.
''/''
He/PRP
accused/VBD
Dow/NNP
Jones/NNP
of/IN
``/``
using/VBG
unfair/JJ
means/NNS
to/TO
obtain/VB
the/DT
stock/NN
at/IN
an/DT
unfair/JJ
price/NN
./.
''/''
Michael/NNP
Rauch/NNP
,/,
an/DT
attorney/NN
for/IN
Dow/NNP
Jones/NNP
,/,
defended/VBD
the/DT
offer/NN
as/IN
adequate/JJ
,/,
based/VBN
on/IN
what/WP
the/DT
company/NN
considers/VBZ
realistic/JJ
projections/NNS
of/IN
Telerate/NNP
's/POS
revenue/NN
growth/NN
,/,
in/IN
the/DT
range/NN
of/IN
12/CD
%/NN
./.
He/PRP
also/RB
contended/VBD
that/IN
the/DT
plaintiffs/NNS
failed/VBD
to/TO
cite/VB
any/DT
legal/JJ
authority/NN
that/WDT
would/MD
justify/VB
such/JJ
an/DT
injunction/NN
./.
Telerate/NNP
provides/VBZ
information/NN
about/IN
financial/JJ
markets/NNS
through/IN
an/DT
electronic/JJ
network/NN
./.
Dow/NNP
Jones/NNP
publishes/VBZ
The/DT
Wall/NNP
Street/NNP
Journal/NNP
,/,
Barron/NNP
's/POS
magazine/NN
,/,
other/JJ
periodicals/NNS
and/CC
community/NN
newspapers/NNS
and/CC
operates/VBZ
electronic/JJ
business/NN
information/NN
services/NNS
./.
Japan/NNP
's/POS
exports/NNS
of/IN
cars/NNS
,/,
trucks/NNS
and/CC
buses/NNS
declined/VBD
2.4/CD
%/NN
to/TO
535,322/CD
units/NNS
in/IN
September/NNP
from/IN
a/DT
year/NN
earlier/RB
,/,
the/DT
Japan/NNP
Automobile/NNP
Manufacturers/NNP
Association/NNP
said/VBD
./.
The/DT
association/NN
attributed/VBD
the/DT
drop/NN
to/TO
a/DT
trend/NN
among/IN
auto/NN
makers/NNS
to/TO
move/VB
manufacturing/NN
operations/NNS
overseas/RB
./.
With/IN
the/DT
exception/NN
of/IN
August/NNP
,/,
when/WRB
exports/NNS
rose/VBD
2.1/CD
%/NN
,/,
exports/NNS
have/VBP
declined/VBN
every/DT
month/NN
from/IN
year-earlier/JJ
levels/NNS
since/IN
March/NNP
./.
Lone/NNP
Star/NNP
Technologies/NNP
Inc./NNP
said/VBD
its/PRP$
Lone/NNP
Star/NNP
Steel/NNP
Co./NNP
unit/NN
sued/VBD
it/PRP
in/IN
federal/JJ
court/NN
here/RB
,/,
seeking/VBG
to/TO
recover/VB
an/DT
intercompany/NN
receivable/NN
valued/VBN
at/IN
a/DT
minimum/NN
of/IN
$/$
23/CD
million/CD
./.
The/DT
lawsuit/NN
was/VBD
filed/VBN
by/IN
Lone/NNP
Star/NNP
Steel/NNP
's/POS
unsecured/JJ
creditors/NNS
'/POS
committee/NN
on/IN
behalf/NN
of/IN
Lone/NNP
Star/NNP
Steel/NNP
,/,
which/WDT
has/VBZ
been/VBN
operating/VBG
under/IN
Chapter/NNP
11/CD
of/IN
the/DT
federal/JJ
Bankruptcy/NNP
Code/NNP
since/IN
June/NNP
30/CD
./.
Lone/NNP
Star/NNP
Technologies/NNP
said/VBD
it/PRP
and/CC
its/PRP$
subsidiary/NN
's/POS
creditors/NNS
agree/VBP
that/IN
the/DT
parent/NN
company/NN
owes/VBZ
the/DT
unit/NN
money/NN
,/,
but/CC
they/PRP
have/VBP
n't/RB
been/VBN
able/JJ
to/TO
reach/VB
agreement/NN
on/IN
the/DT
amount/NN
./.
Judith/NNP
Elkin/NNP
,/,
lawyer/NN
for/IN
the/DT
creditors/NNS
,/,
said/VBD
the/DT
creditors/NNS
group/NN
is/VBZ
challenging/VBG
certain/JJ
accounting/VBG
entries/NNS
on/IN
the/DT
parent/NN
company/NN
's/POS
books/NNS
and/CC
estimates/VBZ
that/IN
the/DT
receivable/NN
owed/VBN
the/DT
steel/NN
company/NN
could/MD
be/VB
as/RB
much/JJ
as/IN
$/$
40/CD
million/CD
./.
The/DT
Lone/NNP
Star/NNP
Steel/NNP
lawsuit/NN
also/RB
asks/VBZ
the/DT
court/NN
to/TO
rule/VB
that/IN
Lone/NNP
Star/NNP
Technologies/NNP
is/VBZ
jointly/RB
responsible/JJ
for/IN
a/DT
$/$
4.5/CD
million/CD
Lone/NNP
Star/NNP
Steel/NNP
pension/NN
payment/NN
that/WDT
was/VBD
due/JJ
,/,
but/CC
was/VBD
n't/RB
paid/VBD
,/,
in/IN
September/NNP
and/CC
that/IN
the/DT
parent/NN
company/NN
ca/MD
n't/RB
recover/VB
the/DT
amount/NN
from/IN
its/PRP$
subsidiary/NN
if/IN
the/DT
parent/NN
company/NN
makes/VBZ
the/DT
payment/NN
./.
Separately/RB
,/,
Lone/NNP
Star/NNP
Technologies/NNP
said/VBD
the/DT
bankruptcy/NN
court/NN
granted/VBD
Lone/NNP
Star/NNP
Steel/NNP
an/DT
extension/NN
until/IN
year/NN
end/NN
on/IN
its/PRP$
exclusive/JJ
period/NN
to/TO
present/VB
a/DT
reorganization/NN
plan/NN
./.
The/DT
120-day/JJ
exclusivity/NN
period/NN
was/VBD
to/TO
expire/VB
yesterday/NN
./.
Under/IN
Chapter/NNP
11/CD
,/,
a/DT
company/NN
continues/VBZ
to/TO
operate/VB
,/,
but/CC
is/VBZ
protected/VBN
from/IN
creditor/NN
lawsuits/NNS
while/IN
it/PRP
tries/VBZ
to/TO
work/VB
out/RP
a/DT
plan/NN
to/TO
pay/VB
its/PRP$
debt/NN
./.
Nothing/NN
was/VBD
going/VBG
to/TO
hold/VB
up/RP
the/DT
long-delayed/JJ
settlement/NN
of/IN
Britton/NNP
vs./IN
Thomasini/NNP
./.
Not/RB
even/RB
an/DT
earthquake/NN
./.
On/IN
the/DT
afternoon/NN
of/IN
Oct./NNP
17/CD
,/,
after/IN
hours/NNS
of/IN
haggling/VBG
with/IN
five/CD
insurance-claims/NNS
adjusters/NNS
over/IN
settling/VBG
a/DT
toxic-waste/NN
suit/NN
,/,
four/CD
lawyers/NNS
had/VBD
an/DT
agreement/NN
in/IN
hand/NN
./.
But/CC
as/IN
Judge/NNP
Thomas/NNP
M./NNP
Jenkins/NNP
donned/VBD
his/PRP$
robes/NNS
so/IN
he/PRP
could/MD
give/VB
final/JJ
approval/NN
,/,
the/DT
major/JJ
earthquake/NN
struck/VBD
,/,
its/PRP$
epicenter/NN
not/RB
far/RB
from/IN
his/PRP$
courtroom/NN
in/IN
Redwood/NNP
City/NNP
,/,
Calif/NNP
./.
The/DT
walls/NNS
shook/VBD
;/:
the/DT
building/NN
rocked/VBD
./.
For/IN
a/DT
while/NN
,/,
it/PRP
looked/VBD
like/IN
the/DT
deal/NN
--/:
not/RB
to/TO
mention/VB
the/DT
courtroom/NN
itself/PRP
--/:
was/VBD
on/IN
the/DT
verge/NN
of/IN
collapse/NN
./.
``/``
The/DT
judge/NN
came/VBD
out/RB
and/CC
said/VBD
,/,
`/``
Quick/RB
,/,
let/VB
's/POS
put/VB
this/DT
on/IN
the/DT
record/NN
,/,
'/''
''/''
says/VBZ
Sandy/NNP
Bettencourt/NNP
,/,
the/DT
judge/NN
's/POS
court/NN
reporter/NN
./.
``/``
I/PRP
said/VBD
,/,
`/``
NOW/RB
?/.
'/''
I/PRP
was/VBD
shaking/VBG
the/DT
whole/JJ
time/NN
./.
''/''
A/DT
10-gallon/JJ
water/NN
cooler/NN
had/VBD
toppled/VBN
onto/IN
the/DT
floor/NN
,/,
soaking/VBG
the/DT
red/JJ
carpeting/NN
./.
Lights/NNS
flickered/VBD
on/RP
and/CC
off/RP
;/:
plaster/NN
dropped/VBD
from/IN
the/DT
ceiling/NN
,/,
the/DT
walls/NNS
still/RB
shook/VBD
and/CC
an/DT
evacuation/NN
alarm/NN
blared/VBD
outside/RB
./.
The/DT
four/CD
lawyers/NNS
climbed/VBD
out/IN
from/IN
under/IN
a/DT
table/NN
./.
``/``
Let/VB
's/POS
close/VB
the/DT
door/NN
,/,
''/''
said/VBD
the/DT
judge/NN
as/IN
he/PRP
climbed/VBD
to/TO
his/PRP$
bench/NN
./.
At/IN
stake/NN
was/VBD
an/DT
$/$
80,000/CD
settlement/NN
involving/VBG
who/WP
should/MD
pay/VB
what/WP
share/NN
of/IN
cleanup/NN
costs/NNS
at/IN
the/DT
site/NN
of/IN
a/DT
former/JJ
gas/NN
station/NN
,/,
where/WRB
underground/JJ
fuel/NN
tanks/NNS
had/VBD
leaked/VBN
and/CC
contaminated/VBN
the/DT
soil/NN
./.
And/CC
the/DT
lawyers/NNS
were/VBD
just/RB
as/RB
eager/JJ
as/IN
the/DT
judge/NN
to/TO
wrap/VB
it/PRP
up/RP
./.
``/``
We/PRP
were/VBD
never/RB
going/VBG
to/TO
get/VB
these/DT
insurance/NN
companies/NNS
to/TO
agree/VB
again/RB
,/,
''/''
says/VBZ
John/NNP
V./NNP
Trump/NNP
,/,
a/DT
San/NNP
Francisco/NNP
defense/NN
lawyer/NN
in/IN
the/DT
case/NN
./.
Indeed/RB
,/,
the/DT
insurance/NN
adjusters/NNS
had/VBD
already/RB
bolted/VBN
out/IN
of/IN
the/DT
courtroom/NN
./.
The/DT
lawyers/NNS
went/VBD
to/TO
work/VB
anyway/RB
,/,
duly/RB
noting/VBG
that/IN
the/DT
proceeding/NN
was/VBD
taking/VBG
place/NN
during/IN
a/DT
major/JJ
earthquake/NN
./.
Ten/CD
minutes/NNS
later/RB
,/,
it/PRP
was/VBD
done/VBN
./.
For/IN
the/DT
record/NN
,/,
Jeffrey/NNP
Kaufman/NNP
,/,
an/DT
attorney/NN
for/IN
Fireman/NN
's/POS
Fund/NN
,/,
said/VBD
he/PRP
was/VBD
``/``
rattled/VBN
--/:
both/DT
literally/RB
and/CC
figuratively/RB
./.
''/''
``/``
My/PRP$
belief/NN
is/VBZ
always/RB
,/,
if/IN
you/PRP
've/VBP
got/VBD
a/DT
settlement/NN
,/,
you/PRP
read/VBP
it/PRP
into/IN
the/DT
record/NN
./.
''/''
says/VBZ
Judge/NNP
Jenkins/NNP
,/,
now/RB
known/VBN
in/IN
his/PRP$
courthouse/NN
as/IN
``/``
Shake/NNP
'Em/NNP
Down/NNP
Jenkins/NNP
./.
''/''
The/DT
insurance/NN
adjusters/NNS
think/VBP
differently/RB
./.
``/``
I/PRP
did/VBD
n't/RB
know/VB
if/IN
it/PRP
was/VBD
World/NNP
War/NNP
III/NNP
or/CC
what/WP
,/,
''/''
says/VBZ
Melanie/NNP
Carvain/NNP
of/IN
Morristown/NNP
,/,
N.J/NNP
./.
``/``
Reading/VBG
the/DT
settlement/NN
into/IN
the/DT
record/NN
was/VBD
the/DT
last/JJ
thing/NN
on/IN
my/PRP$
mind/NN
./.
''/''
Edison/NNP
Brothers/NNP
Stores/NNP
Inc./NNP
said/VBD
it/PRP
agreed/VBD
to/TO
buy/VB
229/CD
Foxmoor/NNP
women/NNS
's/POS
apparel/NN
stores/NNS
from/IN
Foxmoor/NNP
Specialty/NNP
Stores/NNP
Corp./NNP
,/,
a/DT
unit/NN
of/IN
Dylex/NNP
Ltd./NNP
of/IN
Toronto/NNP
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Edison/NN
said/VBD
the/DT
acquired/VBN
stores/NNS
would/MD
be/VB
integrated/VBN
into/IN
its/PRP$
current/JJ
operations/NNS
./.
BROWN-FORMAN/NNP
Corp/NNP
./.
Louisville/NNP
,/,
Ky./NNP
David/NNP
R./NNP
Jackson/NNP
,/,
formerly/RB
vice/NN
president/NN
,/,
managing/VBG
director/NN
of/IN
corporate/JJ
communications/NNS
for/IN
Maxwell/NNP
Communication/NNP
Inc./NNP
,/,
was/VBD
named/VBN
vice/NN
president/NN
and/CC
assistant/NN
to/TO
the/DT
chairman/NN
of/IN
this/DT
maker/NN
of/IN
alcoholic/JJ
beverages/NNS
and/CC
consumer/NN
products/NNS
./.
Your/PRP$
Oct./NNP
4/CD
front/JJ
page/NN
noted/VBD
that/IN
British/JJ
lawyers/NNS
have/VBP
to/TO
wear/VB
wigs/NNS
in/IN
court/NN
and/CC
that/IN
these/DT
wigs/NNS
are/VBP
made/VBN
from/IN
horses/NNS
'/POS
tails/NNS
./.
Do/VBP
you/PRP
think/VB
the/DT
British/NNS
know/VBP
something/NN
that/IN
we/PRP
do/VBP
n't/RB
?/.
Yale/NNP
Jay/NNP
Lubkin/NNP
Owings/NNP
,/,
Md/NNP
./.
Applause/NN
for/IN
``/``
Sometimes/RB
,/,
Talk/NN
Is/VBZ
the/DT
Best/JJS
Medicine/NN
,/,
''/''
in/IN
your/PRP$
Oct./NNP
5/CD
Marketplace/NNP
section/NN
./.
Indeed/RB
,/,
the/DT
``/``
art/NN
of/IN
doctoring/NN
''/''
does/VBZ
contribute/VB
to/TO
better/JJR
health/NN
results/NNS
and/CC
discourages/VBZ
unwarranted/JJ
malpractice/NN
litigation/NN
./.
Elaborating/VBG
on/IN
the/DT
concern/NN
about/IN
doctors/NNS
'/POS
sacrificing/VBG
earnings/NNS
in/IN
order/NN
to/TO
spend/VB
``/``
talk/NN
time/NN
''/''
with/IN
patients/NNS
,/,
we/PRP
are/VBP
finding/VBG
the/DT
quality/NN
of/IN
the/DT
time/NN
spent/VBN
is/VBZ
the/DT
key/NN
to/TO
true/JJ
rapport/NN
./.
Even/RB
brief/JJ
conversations/NNS
can/MD
show/VB
caring/NN
and/CC
trust/NN
,/,
and/CC
need/MD
not/RB
restrict/VB
the/DT
efficiency/NN
of/IN
the/DT
communication/NN
or/CC
restrain/VB
the/DT
doctor/NN
's/POS
earnings/NNS
./.
The/DT
issue/NN
is/VBZ
far-reaching/JJ
./.
Right/RB
now/RB
,/,
the/DT
American/JJ
populace/NN
is/VBZ
spending/VBG
about/RB
12/CD
%/NN
of/IN
our/PRP$
gross/JJ
national/JJ
product/NN
on/IN
health/NN
care/NN
./.
That/DT
amounts/VBZ
to/TO
more/JJR
than/IN
$/$
350/CD
billion/CD
a/DT
year/NN
./.
And/CC
it/PRP
is/VBZ
estimated/VBN
that/IN
more/JJR
than/IN
20/CD
%/NN
of/IN
that/DT
,/,
$/$
70/CD
billion/CD
,/,
goes/VBZ
to/TO
``/``
defensive/JJ
medicine/NN
''/''
--/:
those/DT
measures/NNS
taken/VBN
by/IN
doctors/NNS
to/TO
protect/VB
themselves/PRP
from/IN
the/DT
most/RBS
unlikely/JJ
possibilities/NNS
./.
So/IN
we/PRP
all/DT
stand/VBP
to/TO
benefit/VB
if/IN
patient-physician/JJ
relations/NNS
become/VBP
a/DT
``/``
partnership/NN
./.
''/''
President/NNP
North/NNP
American/NNP
Physicians/NNP
Insurance/NNP
Risk/NNP
Retention/NNP
Group/NNP
Des/NNP
Moines/NNP
,/,
Iowa/NNP
Chrysler/NNP
Corp./NNP
Chairman/NNP
Lee/NNP
A./NNP
Iacocca/NNP
said/VBD
the/DT
nation/NN
's/POS
No./NN
3/CD
auto/NN
maker/NN
will/MD
need/VB
to/TO
close/VB
one/CD
or/CC
two/CD
of/IN
its/PRP$
assembly/NN
plants/NNS
because/RB
of/IN
the/DT
slowdown/NN
hitting/VBG
the/DT
industry/NN
./.
In/IN
an/DT
interview/NN
with/IN
the/DT
trade/NN
journal/NN
Automotive/NNP
News/NNP
,/,
Mr./NNP
Iacocca/NNP
declined/VBD
to/TO
say/VB
which/WDT
plants/NNS
will/MD
close/VB
or/CC
when/WRB
Chrysler/NNP
will/MD
make/VB
the/DT
moves/NNS
./.
But/CC
he/PRP
said/VBD
,/,
``/``
we/PRP
have/VBP
too/RB
many/JJ
plants/NNS
in/IN
our/PRP$
system/NN
./.
So/IN
the/DT
older/JJR
or/CC
most/RBS
inefficient/JJ
capacity/NN
has/VBZ
got/VBD
to/TO
go/VB
./.
''/''
According/VBG
to/TO
industry/NN
analysts/NNS
,/,
Chrysler/NNP
plants/NNS
most/RBS
likely/JJ
to/TO
close/RB
are/VBP
the/DT
St./NNP
Louis/NNP
No./NN
1/CD
facility/NN
,/,
which/WDT
builds/VBZ
Chrysler/NNP
LeBaron/NNP
and/CC
Dodge/NNP
Daytona/NNP
models/NNS
;/:
the/DT
Toledo/NNP
,/,
Ohio/NNP
,/,
Jeep/NNP
plant/NN
,/,
which/WDT
dates/VBZ
back/RB
to/TO
the/DT
early/JJ
1900s/CD
;/:
and/CC
two/CD
Canadian/JJ
plants/NNS
that/WDT
build/VBP
the/DT
Jeep/NNP
Wrangler/NNP
and/CC
Chrysler/NNP
's/POS
full-sized/JJ
vans/NNS
./.
Chrysler/NNP
has/VBZ
had/VBD
to/TO
temporarily/RB
close/VB
the/DT
St./NNP
Louis/NNP
and/CC
Toledo/NNP
plants/NNS
recently/RB
because/IN
of/IN
excess/JJ
inventories/NNS
of/IN
vehicles/NNS
built/VBN
there/RB
./.
At/IN
Chrysler/NNP
's/POS
1990/CD
model/NN
preview/NN
last/JJ
month/NN
,/,
Chrysler/NNP
Motors/NNP
President/NNP
Robert/NNP
A./NNP
Lutz/NNP
said/VBD
the/DT
No./NN
3/CD
auto/NN
maker/NN
,/,
along/IN
with/IN
other/JJ
U.S./NNP
manufacturers/NNS
,/,
might/MD
be/VB
forced/VBN
to/TO
``/``
realign/VB
.../:
capacity/NN
''/''
if/IN
market/NN
demand/NN
does/VBZ
n't/RB
improve/VB
./.
But/CC
Mr./NNP
Iacocca/NNP
's/POS
remarks/NNS
are/VBP
the/DT
most/RBS
specific/JJ
indication/NN
to/TO
date/NN
of/IN
how/WRB
many/JJ
plants/NNS
could/MD
be/VB
in/IN
jeopardy/NN
./.
General/NNP
Motors/NNP
Corp./NNP
has/VBZ
signaled/VBN
that/IN
as/RB
many/JJ
as/IN
five/CD
of/IN
its/PRP$
U.S./NNP
and/CC
Canadian/JJ
plants/NNS
may/MD
not/RB
survive/VB
the/DT
mid-1990s/NNS
as/IN
it/PRP
struggles/VBZ
to/TO
trim/VB
its/PRP$
excess/JJ
vehicle-production/JJ
capacity/NN
./.
The/DT
overcapacity/NN
problem/NN
has/VBZ
intensified/VBN
in/IN
recent/JJ
years/NNS
,/,
with/IN
foreign/JJ
auto/NN
makers/NNS
beginning/VBG
car/NN
and/CC
truck/NN
production/NN
in/IN
the/DT
U.S/NNP
./.
With/IN
companies/NNS
such/JJ
as/IN
Honda/NNP
Motor/NNP
Co./NNP
,/,
Toyota/NNP
Motor/NNP
Corp./NNP
and/CC
Nissan/NNP
Motor/NNP
Co./NNP
running/VBG
so-called/JJ
transplant/NN
auto/NN
operations/NNS
,/,
Japanese/JJ
auto/NN
production/NN
in/IN
the/DT
U.S./NNP
will/MD
reach/VB
one/CD
million/CD
vehicles/NNS
this/DT
year/NN
./.
``/``
Unless/IN
the/DT
market/NN
goes/VBZ
to/TO
19/CD
million/CD
units/NNS
--/:
which/WDT
we/PRP
all/DT
know/VBP
it/PRP
's/VBZ
not/RB
going/VBG
to/TO
do/VB
--/:
we/PRP
have/VBP
the/DT
inescapable/JJ
fact/NN
that/IN
the/DT
transplants/NNS
are/VBP
adding/VBG
capacity/NN
,/,
''/''
Mr./NNP
Lutz/NNP
said/VBD
last/JJ
month/NN
./.
The/DT
Japanese-managed/JJ
plants/NNS
eventually/RB
will/MD
have/VB
the/DT
capacity/NN
to/TO
build/VB
some/DT
2.5/CD
million/CD
vehicles/NNS
in/IN
the/DT
U.S./NNP
and/CC
that/DT
will/MD
translate/VB
into/IN
``/``
market/NN
share/NN
that/WDT
is/VBZ
going/VBG
to/TO
have/VB
to/TO
come/VB
out/IN
of/IN
somebody/NN
,/,
''/''
he/PRP
added/VBD
./.
Already/RB
Chrysler/NNP
has/VBZ
closed/VBN
the/DT
Kenosha/NNP
,/,
Wis./NNP
,/,
plant/NN
it/PRP
acquired/VBD
when/WRB
it/PRP
bought/VBD
American/NNP
Motors/NNP
Corp./NNP
in/IN
1987/CD
./.
Chrysler/NNP
has/VBZ
also/RB
launched/VBN
a/DT
$/$
1/CD
billion/CD
cost-cutting/NN
program/NN
that/WDT
will/MD
cut/VB
about/RB
2,300/CD
white-collar/JJ
workers/NNS
from/IN
the/DT
payroll/NN
in/IN
the/DT
next/JJ
few/JJ
months/NNS
./.
Revco/NNP
D.S./NNP
Inc./NNP
,/,
the/DT
drugstore/NN
chain/NN
that/WDT
filed/VBD
for/IN
bankruptcy-court/NN
protection/NN
last/JJ
year/NN
,/,
received/VBD
a/DT
$/$
925/CD
million/CD
offer/NN
from/IN
a/DT
group/NN
led/VBD
by/IN
Texas/NNP
billionaire/NN
Robert/NNP
Bass/NNP
./.
Revco/NNP
reacted/VBD
cautiously/RB
,/,
saying/VBG
the/DT
plan/NN
would/MD
add/VB
$/$
260/CD
million/CD
of/IN
new/JJ
debt/NN
to/TO
the/DT
highly/RB
leveraged/VBN
company/NN
./.
It/PRP
was/VBD
Revco/NNP
's/POS
huge/JJ
debt/NN
from/IN
its/PRP$
$/$
1.3/CD
billion/CD
leveraged/VBN
buy-out/NN
in/IN
1986/CD
that/IN
forced/VBN
it/PRP
to/TO
seek/VB
protection/NN
under/IN
Chapter/NNP
11/CD
of/IN
the/DT
federal/JJ
Bankruptcy/NNP
Code/NNP
./.
Revco/NNP
insists/VBZ
that/IN
the/DT
proposal/NN
is/VBZ
simply/RB
an/DT
``/``
expression/NN
of/IN
interest/NN
,/,
''/''
because/IN
under/IN
Chapter/NNP
11/CD
Revco/NNP
has/VBZ
``/``
exclusivity/NN
rights/NNS
''/''
until/IN
Feb./NNP
28/CD
./.
Those/DT
rights/NNS
prevent/VBP
anyone/NN
other/JJ
than/IN
Revco/NNP
from/IN
proposing/VBG
a/DT
reorganization/NN
plan/NN
./.
Also/RB
under/IN
Chapter/NNP
11/CD
,/,
a/DT
reorganization/NN
plan/NN
is/VBZ
subject/JJ
to/TO
approval/NN
by/IN
bondholders/NNS
,/,
banks/NNS
and/CC
other/JJ
creditors/NNS
./.
A/DT
financial/JJ
adviser/NN
for/IN
Revco/NNP
bondholders/NNS
,/,
David/NNP
Schulte/NNP
,/,
of/IN
Chilmark/NNP
Partners/NNP
,/,
had/VBD
mixed/VBN
reactions/NNS
to/TO
the/DT
offer/NN
./.
He/PRP
said/VBD
he/PRP
feared/VBD
a/DT
Revco/NNP
reorganization/NN
might/MD
force/VB
bondholders/NNS
to/TO
accept/VB
a/DT
``/``
cheap/JJ
deal/NN
,/,
''/''
and/CC
that/IN
the/DT
Bass/NNP
group/NN
's/POS
offer/NN
would/MD
give/VB
them/PRP
more/JJR
money/NN
./.
However/RB
,/,
the/DT
group/NN
is/VBZ
offering/VBG
to/TO
pay/VB
off/RP
bondholders/NNS
in/IN
cash/NN
only/RB
--/:
$/$
260.5/CD
million/CD
--/:
and/CC
no/DT
equity/NN
./.
The/DT
Revco/NNP
bonds/NNS
are/VBP
high-yield/JJ
,/,
high-risk/JJ
``/``
junk/NN
''/''
bonds/NNS
;/:
holders/NNS
have/VBP
$/$
750/CD
million/CD
in/IN
claims/NNS
against/IN
Revco/NNP
,/,
Mr./NNP
Schulte/NNP
said/VBD
./.
Revco/NNP
received/VBD
the/DT
offer/NN
Oct./NNP
20/CD
,/,
but/CC
issued/VBD
a/DT
response/NN
yesterday/NN
only/RB
after/IN
a/DT
copy/NN
of/IN
the/DT
proposal/NN
was/VBD
made/VBN
public/NN
by/IN
bondholders/NNS
./.
Acadia/NNP
Partners/NNP
Limited/NNP
Partnership/NNP
,/,
a/DT
Fort/NNP
Worth/NNP
,/,
Texas/NNP
,/,
partnership/NN
that/WDT
includes/VBZ
the/DT
Robert/NNP
M./NNP
Bass/NNP
Group/NNP
,/,
made/VBD
the/DT
proposal/NN
./.
Mr./NNP
Bass/NNP
is/VBZ
based/VBN
in/IN
Fort/NNP
Worth/NNP
./.
Analysts/NNS
said/VBD
the/DT
nation/NN
's/POS
second-largest/JJ
drugstore/NN
chain/NN
was/VBD
a/DT
valuable/JJ
company/NN
,/,
despite/IN
its/PRP$
financial/JJ
woes/NNS
./.
Its/PRP$
problem/NN
,/,
they/PRP
say/VBP
,/,
is/VBZ
that/DT
management/NN
paid/VBD
too/RB
much/JJ
in/IN
the/DT
leveraged/VBN
buy-out/NN
and/CC
the/DT
current/JJ
$/$
515/CD
million/CD
debt/NN
load/NN
is/VBZ
keeping/VBG
Revco/NNP
in/IN
the/DT
red/NN
./.
``/``
If/IN
bought/VBN
at/IN
the/DT
right/JJ
price/NN
,/,
it/PRP
could/MD
still/RB
be/VB
profitable/JJ
,/,
''/''
said/VBD
Jeffrey/NNP
Stein/NNP
,/,
an/DT
analyst/NN
at/IN
McDonald/NNP
&/CC
Co./NNP
,/,
Cleveland/NNP
./.
In/IN
addition/NN
,/,
Revco/NNP
's/POS
1,900/CD
stores/NNS
in/IN
27/CD
states/NNS
represent/VBP
a/DT
lot/NN
of/IN
real/JJ
estate/NN
,/,
he/PRP
said/VBD
,/,
and/CC
demographics/NNS
are/VBP
helping/VBG
pharmacies/NNS
:/:
The/DT
nation/NN
's/POS
aging/VBG
population/NN
will/MD
boost/VB
demand/NN
for/IN
prescription/NN
drugs/NNS
./.
Last/JJ
week/NN
,/,
Revco/NNP
's/POS
parent/NN
company/NN
,/,
Anac/NNP
Holding/NNP
Corp./NNP
,/,
said/VBD
the/DT
company/NN
reported/VBD
a/DT
loss/NN
of/IN
$/$
16.2/CD
million/CD
for/IN
the/DT
fiscal/JJ
first/JJ
quarter/NN
,/,
compared/VBN
with/IN
a/DT
loss/NN
of/IN
$/$
27.9/CD
million/CD
in/IN
the/DT
year-earlier/JJ
quarter/NN
./.
Sales/NNS
were/VBD
$/$
597.8/CD
million/CD
,/,
up/RB
2.4/CD
%/NN
from/IN
the/DT
previous/JJ
year/NN
./.
The/DT
company/NN
,/,
based/VBN
in/IN
Twinsburg/NNP
,/,
Ohio/NNP
,/,
said/VBD
its/PRP$
operating/NN
profit/NN
before/IN
depreciation/NN
and/CC
amortization/NN
increased/VBD
51/CD
%/NN
,/,
to/TO
$/$
9.2/CD
million/CD
from/IN
$/$
6.1/CD
million/CD
./.
Acadia/NNP
Partners/NNP
and/CC
the/DT
Bass/NNP
Group/NNP
declined/VBD
to/TO
comment/VB
./.
The/DT
partnership/NN
also/RB
includes/VBZ
American/NNP
Express/NNP
Co./NNP
,/,
Equitable/NNP
Life/NNP
Assurance/NNP
Society/NNP
of/IN
the/DT
U.S./NNP
and/CC
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc/NNP
./.
The/DT
offer/NN
consists/VBZ
of/IN
$/$
410.5/CD
million/CD
in/IN
cash/NN
and/CC
the/DT
rest/NN
in/IN
notes/NNS
./.
Acadia/NNP
would/MD
sell/VB
up/IN
to/TO
10/CD
%/NN
of/IN
the/DT
equity/NN
in/IN
the/DT
reorganized/VBN
company/NN
to/TO
creditors/NNS
and/CC
bondholders/NNS
in/IN
exchange/NN
for/IN
the/DT
cash/NN
distribution/NN
,/,
but/CC
creditors/NNS
and/CC
bondholders/NNS
would/MD
receive/VB
no/DT
discount/NN
for/IN
their/PRP$
shares/NNS
./.
Revco/NNP
's/POS
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
,/,
Boake/NNP
A./NNP
Sells/NNP
,/,
said/VBD
both/DT
the/DT
company/NN
and/CC
the/DT
bondholders/NNS
have/VBP
put/VBN
forth/RB
reorganization/NN
plans/NNS
,/,
but/CC
little/JJ
progress/NN
has/VBZ
been/VBN
made/VBN
since/IN
negotiations/NNS
began/VBD
this/DT
summer/NN
./.
He/PRP
said/VBD
he/PRP
has/VBZ
not/RB
met/VBN
with/IN
representatives/NNS
from/IN
Acadia/NNP
./.
Any/DT
reorganization/NN
proposal/NN
,/,
Mr./NNP
Sells/NNP
said/VBD
,/,
is/VBZ
difficult/JJ
to/TO
assess/VB
because/IN
it/PRP
must/MD
be/VB
agreed/VBN
upon/IN
by/IN
the/DT
company/NN
,/,
bondholders/NNS
,/,
banks/NNS
and/CC
other/JJ
creditors/NNS
./.
Revco/NNP
has/VBZ
$/$
1.5/CD
billion/CD
in/IN
claims/NNS
outstanding/JJ
./.
``/``
It/PRP
's/VBZ
not/RB
like/IN
the/DT
board/NN
can/MD
decide/VB
''/''
by/IN
itself/PRP
,/,
Mr./NNP
Sells/NNP
said/VBD
,/,
adding/VBG
,/,
``/``
we/PRP
're/VBP
indifferent/JJ
to/TO
(/(
the/DT
Bass/NNP
plan/NN
./.
We/PRP
just/RB
want/VBP
a/DT
plan/NN
that/IN
satisfies/VBZ
creditors/NNS
and/CC
at/IN
the/DT
end/NN
leaves/VBZ
a/DT
healthy/JJ
Revco/NNP
./.
''/''
But/CC
Mr./NNP
Schulte/NNP
,/,
the/DT
bondholders/NNS
'/POS
adviser/NN
,/,
said/VBD
Revco/NNP
was/VBD
dragging/VBG
its/PRP$
feet/NNS
in/IN
responding/VBG
to/TO
the/DT
proposal/NN
./.
``/``
They/PRP
want/VBP
to/TO
pretend/VB
it/PRP
does/VBZ
n't/RB
exist/VB
,/,
''/''
he/PRP
said/VBD
./.
Mr./NNP
Schulte/NNP
,/,
who/WP
met/VBD
with/IN
Acadia/NNP
representatives/NNS
on/IN
Oct./NNP
10/CD
,/,
said/VBD
,/,
``/``
It/PRP
's/VBZ
certainly/RB
a/DT
responsible/JJ
offer/NN
./.
It/PRP
's/VBZ
not/RB
an/DT
effort/NN
to/TO
steal/VB
the/DT
company/NN
''/''
in/IN
the/DT
middle/NN
of/IN
the/DT
night/NN
./.
Copper/NN
futures/NNS
prices/NNS
failed/VBD
to/TO
extend/VB
Friday/NNP
's/POS
rally/NN
./.
Declines/NNS
came/VBD
because/RB
of/IN
concern/NN
that/IN
demand/NN
for/IN
copper/NN
may/MD
slow/VB
down/RP
./.
The/DT
December/NNP
contract/NN
was/VBD
down/RB
three/CD
cents/NNS
a/DT
pound/NN
,/,
settling/VBG
at/IN
$/$
1.1280/CD
,/,
which/WDT
was/VBD
just/RB
above/IN
the/DT
day/NN
's/POS
low/NN
of/IN
$/$
1.1270/CD
./.
Futures/NNS
prices/NNS
fell/VBD
during/IN
three/CD
of/IN
five/CD
sessions/NNS
last/JJ
week/NN
,/,
and/CC
the/DT
losses/NNS
,/,
individually/RB
and/CC
cumulatively/RB
,/,
were/VBD
greater/JJR
than/IN
the/DT
advances/NNS
./.
Two/CD
of/IN
the/DT
major/JJ
factors/NNS
buoying/VBG
prices/NNS
,/,
the/DT
prolonged/JJ
strikes/NNS
at/IN
the/DT
Highland/NNP
Valley/NNP
mine/NN
in/IN
Canada/NNP
and/CC
the/DT
Cananea/NNP
mine/NN
in/IN
Mexico/NNP
,/,
were/VBD
finally/RB
resolved/VBN
./.
Also/RB
,/,
the/DT
premiums/NNS
paid/VBN
by/IN
the/DT
U.S./NNP
government/NN
on/IN
a/DT
purchase/NN
of/IN
copper/NN
for/IN
the/DT
U.S./NNP
Mint/NNP
were/VBD
lower/JJR
than/IN
expected/VBN
,/,
and/CC
acted/VBD
as/IN
a/DT
price/NN
depressant/NN
,/,
analysts/NNS
said/VBD
./.
The/DT
mint/NN
purchases/NNS
were/VBD
at/IN
premiums/NNS
about/RB
4/CD
1\/2/CD
cents/NNS
a/DT
pound/NN
above/IN
the/DT
respective/JJ
prices/NNS
for/IN
the/DT
copper/NN
./.
At/IN
the/DT
time/NN
merchants/NNS
were/VBD
asking/VBG
for/IN
premiums/NNS
of/IN
about/RB
five/CD
cents/NNS
a/DT
pound/NN
./.
All/DT
this/DT
has/VBZ
led/VBN
to/TO
prolonged/VBN
selling/NN
in/IN
futures/NNS
,/,
mostly/RB
on/IN
the/DT
part/NN
of/IN
computer-guided/JJ
funds/NNS
./.
Prices/NNS
fell/VBD
through/IN
levels/NNS
regarded/VBN
as/IN
important/JJ
support/NN
areas/NNS
,/,
which/WDT
added/VBD
to/TO
the/DT
selling/NN
./.
The/DT
reluctance/NN
of/IN
traders/NNS
to/TO
buy/VB
contracts/NNS
indicates/VBZ
that/IN
they/PRP
have/VBP
begun/VBN
focusing/VBG
on/IN
demand/NN
rather/RB
than/IN
supply/NN
./.
At/IN
least/JJS
one/CD
analyst/NN
noted/VBD
that/IN
as/IN
production/NN
improves/VBZ
,/,
the/DT
concern/NN
among/IN
traders/NNS
is/VBZ
whether/IN
the/DT
prospective/JJ
increased/VBN
supply/NN
will/MD
find/VB
buyers/NNS
because/RB
of/IN
uncertainty/NN
over/IN
national/JJ
economies/NNS
./.
``/``
Demand/NN
from/IN
Japan/NNP
is/VBZ
expected/VBN
to/TO
continue/VB
strong/JJ
,/,
but/CC
not/RB
from/IN
other/JJ
areas/NNS
of/IN
the/DT
world/NN
into/IN
the/DT
first/JJ
quarter/NN
of/IN
next/JJ
year/NN
,/,
''/''
he/PRP
said/VBD
./.
Japan/NNP
normally/RB
depends/VBZ
heavily/RB
on/IN
the/DT
Highland/NNP
Valley/NNP
and/CC
Cananea/NNP
mines/NNS
as/RB
well/RB
as/IN
the/DT
Bougainville/NNP
mine/NN
in/IN
Papua/NNP
New/NNP
Guinea/NNP
./.
Recently/RB
,/,
Japan/NNP
has/VBZ
been/VBN
buying/VBG
copper/NN
elsewhere/RB
./.
But/CC
as/IN
Highland/NNP
Valley/NNP
and/CC
Cananea/NNP
begin/VB
operating/VBG
,/,
they/PRP
are/VBP
expected/VBN
to/TO
resume/VB
their/PRP$
roles/NNS
as/IN
Japan/NNP
's/POS
suppliers/NNS
./.
According/VBG
to/TO
Fred/NNP
Demler/NNP
,/,

metals/NNS
economist/NN
for/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
,/,
New/NNP
York/NNP
,/,
``/``
Highland/NNP
Valley/NNP
has/VBZ
already/RB
started/VBN
operating/VBG
and/CC
Cananea/NNP
is/VBZ
expected/VBN
to/TO
do/VB
so/RB
soon/RB
./.
''/''
The/DT
Bougainville/NNP
mine/NN
is/VBZ
generally/RB
expected/VBN
to/TO
remain/VB
closed/JJ
until/IN
at/IN
least/JJS
the/DT
end/NN
of/IN
the/DT
year/NN
./.
It/PRP
has/VBZ
n't/RB
been/VBN
operating/VBG
since/IN
May/NNP
15/CD
because/IN
of/IN
attacks/NNS
by/IN
native/JJ
landowners/NNS
./.
A/DT
recent/JJ
attempt/NN
to/TO
resume/VB
operations/NNS
was/VBD
cut/VBN
short/JJ
quickly/RB
by/IN
these/DT
attacks/NNS
./.
However/RB
,/,
traders/NNS
disregarded/VBD
a/DT
potential/JJ
production/NN
disruption/NN
in/IN
Chile/NNP
and/CC
a/DT
continued/VBN
drop/NN
in/IN
inventories/NNS
./.
Workers/NNS
at/IN
two/CD
Chilean/JJ
mines/NNS
,/,
Los/NNP
Bronces/NNP
and/CC
El/NNP
Soldado/NNP
,/,
which/WDT
belong/VBP
to/TO
the/DT
Exxon-owned/JJ
Minera/NNP
Disputado/NNP
group/NN
,/,
will/MD
vote/VB
Thursday/NNP
on/IN
whether/IN
to/TO
strike/VB
after/RB
a/DT
two-year/JJ
labor/NN
pact/NN
ends/VBZ
today/NN
./.
The/DT
mines/NNS
produced/VBD
a/DT
total/NN
of/IN
110,000/CD
tons/NNS
of/IN
copper/NN
in/IN
1988/CD
./.
According/VBG
to/TO
Drexel/NNP
's/POS
Mr./NNP
Demler/NNP
,/,
the/DT
potential/JJ
strike/NN
is/VBZ
expected/VBN
to/TO
be/VB
resolved/VBN
quickly/RB
,/,
which/WDT
may/MD
be/VB
one/CD
reason/NN
why/WRB
the/DT
situation/NN
did/VBD
n't/RB
affect/VB
prices/NNS
much/RB
./.
Another/DT
analyst/NN
said/VBD
that/IN
,/,
if/IN
there/EX
was/VBD
any/DT
concern/NN
,/,
it/PRP
was/VBD
that/IN
a/DT
strike/NN
could/MD
encourage/VB
other/JJ
walkouts/NNS
in/IN
Chile/NNP
./.
London/NNP
Metal/NNP
Exchange/NNP
copper/NN
inventories/NNS
fell/VBD
550/CD
tons/NNS
last/JJ
week/NN
to/TO
83,950/CD
tons/NNS
,/,
a/DT
smaller-than-expected/JJ
decline/NN
./.
But/CC
that/DT
development/NN
also/RB
had/VBD
little/JJ
effect/NN
on/IN
traders/NNS
'/POS
sentiment/NN
./.
Mr./NNP
Demler/NNP
said/VBD
that/IN
stocks/NNS
of/IN
copper/NN
in/IN
U.S./NNP
producers/NNS
'/POS
hands/NNS
at/IN
the/DT
end/NN
of/IN
September/NNP
were/VBD
down/RB
16,000/CD
metric/JJ
tons/NNS
from/IN
August/NNP
to/TO
30,000/CD
tons/NNS
./.
Outside/IN
the/DT
U.S./NNP
,/,
he/PRP
said/VBD
,/,
producer/NN
stocks/NNS
at/IN
the/DT
end/NN
of/IN
August/NNP
were/VBD
273,000/CD
tons/NNS
,/,
down/RB
3,000/CD
tons/NNS
from/IN
the/DT
end/NN
of/IN
July/NNP
./.
Consumer/NN
stocks/NNS
of/IN
copper/NN
in/IN
the/DT
U.S./NNP
fell/VBD
to/TO
44,000/CD
tons/NNS
at/IN
the/DT
end/NN
of/IN
September/NNP
from/IN
54,000/CD
tons/NNS
a/DT
month/NN
earlier/RBR
,/,
and/CC
stocks/NNS
of/IN
copper/NN
held/VBN
by/IN
consumers/NNS
and/CC
merchants/NNS
outside/IN
of/IN
the/DT
U.S./NNP
at/IN
the/DT
end/NN
of/IN
July/NNP
stood/VBD
at/IN
123,000/CD
tons/NNS
,/,
down/RB
from/IN
125,000/CD
tons/NNS
in/IN
June/NNP
./.
The/DT
high/JJ
point/NN
of/IN
foreigners/NNS
'/POS
copper/NN
stocks/NNS
this/DT
year/NN
was/VBD
136,000/CD
tons/NNS
at/IN
the/DT
end/NN
of/IN
April/NNP
,/,
according/VBG
to/TO
Mr./NNP
Demler/NNP
./.
In/IN
other/JJ
commodity/NN
markets/NNS
yesterday/NN
:/:
GRAINS/NNS
AND/CC
SOYBEANS/NNS
:/:
The/DT
prices/NNS
of/IN
most/JJS
corn/NN
,/,
soybean/NN
and/CC
wheat/NN
futures/NNS
contracts/NNS
dropped/VBD
slightly/RB
as/IN
farmers/NNS
in/IN
the/DT
Midwest/NNP
continued/VBN
to/TO
rebuild/VB
stockpiles/NNS
that/WDT
were/VBD
depleted/VBN
by/IN
the/DT
1988/CD
drought/NN
./.
Buying/NN
by/IN
the/DT
Soviets/NNS
has/VBZ
helped/VBN
to/TO
prop/VB
up/RP
corn/NN
prices/NNS
in/IN
recent/JJ
weeks/NNS
,/,
but/CC
a/DT
lack/NN
of/IN
any/DT
new/JJ
purchases/NNS
kept/VBD
prices/NNS
in/IN
the/DT
doldrums/NN
./.
COFFEE/NN
:/:
Futures/NNS
prices/NNS
rose/VBD
slightly/RB
in/IN
a/DT
market/NN
filled/VBN
with/IN
rumors/NNS
that/IN
a/DT
new/JJ
international/JJ
coffee/NN
agreement/NN
might/MD
still/RB
be/VB
achieved/VBN
./.
The/DT
December/NNP
contract/NN
ended/VBD
with/IN
a/DT
gain/NN
of/IN
1.29/CD
cents/NNS
a/DT
pound/NN
at/IN
74.35/CD
cents/NNS
./.
According/VBG
to/TO
one/CD
analyst/NN
,/,
prices/NNS
opened/VBD
higher/RBR
because/IN
of/IN
reports/NNS
over/IN
the/DT
weekend/NN
that/IN
Brazil/NNP
and/CC
Colombia/NNP
,/,
at/IN
the/DT
Pan-American/JJ
summit/NN
meeting/NN
in/IN
Costa/NNP
Rica/NNP
,/,
had/VBD
agreed/VBN
to/TO
a/DT
reduction/NN
in/IN
their/PRP$
coffee/NN
export/NN
quotas/NNS
for/IN
the/DT
sake/NN
of/IN
creating/VBG
a/DT
new/JJ
agreement/NN
./.
The/DT
reports/NNS
,/,
attributed/VBN
to/TO
the/DT
Colombian/JJ
minister/NN
of/IN
economic/JJ
development/NN
,/,
said/VBD
Brazil/NNP
would/MD
give/VB
up/RP
500,000/CD
bags/NNS
of/IN
its/PRP$
quota/NN
and/CC
Colombia/NNP
200,000/CD
bags/NNS
,/,
the/DT
analyst/NN
said/VBD
./.
These/DT
reports/NNS
were/VBD
later/RB
denied/VBN
by/IN
a/DT
high/JJ
Brazilian/JJ
official/NN
,/,
who/WP
said/VBD
Brazil/NNP
was/VBD
n't/RB
involved/VBN
in/IN
any/DT
coffee/NN
discussions/NNS
on/IN
quotas/NNS
,/,
the/DT
analyst/NN
said/VBD
./.
The/DT
Colombian/JJ
minister/NN
was/VBD
said/VBD
to/TO
have/VB
referred/VBN
to/TO
a/DT
letter/NN
that/IN
he/PRP
said/VBD
President/NNP
Bush/NNP
sent/VBD
to/TO
Colombian/JJ
President/NNP
Virgilio/NNP
Barco/NNP
,/,
and/CC
in/IN
which/WDT
President/NNP
Bush/NNP
said/VBD
it/PRP
was/VBD
possible/JJ
to/TO
overcome/VB
obstacles/NNS
to/TO
a/DT
new/JJ
agreement/NN
./.
The/DT
minister/NN
was/VBD
also/RB
quoted/VBN
as/IN
saying/VBG
that/IN
a/DT
new/JJ
pact/NN
could/MD
be/VB
achieved/VBN
during/IN
the/DT
first/JJ
half/NN
of/IN
next/JJ
year/NN
,/,
according/VBG
to/TO
the/DT
analyst/NN
./.
PRECIOUS/JJ
METALS/NNS
:/:
Futures/NNS
prices/NNS
showed/VBD
modest/JJ
changes/NNS
in/IN
light/JJ
trading/NN
volume/NN
./.
December/NNP
delivery/NN
gold/NN
eased/VBD
40/CD
cents/NNS
an/DT
ounce/NN
to/TO
$/$
380.80/CD
./.
December/NNP
silver/NN
was/VBD
off/RB
3.7/CD
cents/NNS
an/DT
ounce/NN
at/IN
$/$
5.2830/CD
./.
January/NNP
platinum/NN
rose/VBD
90/CD
cents/NNS
an/DT
ounce/NN
at/IN
$/$
500.20/CD
./.
The/DT
market/NN
turned/VBD
quiet/JJ
after/IN
rising/VBG
sharply/RB
late/JJ
last/JJ
week/NN
,/,
according/VBG
to/TO
one/CD
analyst/NN
./.
Last/JJ
week/NN
's/POS
uncertainty/NN
in/IN
the/DT
stock/NN
market/NN
and/CC
a/DT
weaker/JJR
dollar/NN
triggered/VBD
a/DT
flight/NN
to/TO
safety/NN
,/,
he/PRP
said/VBD
,/,
but/CC
yesterday/NN
the/DT
market/NN
lacked/VBD
such/JJ
stimuli/NNS
./.
There/EX
was/VBD
some/DT
profit-taking/NN
because/IN
prices/NNS
for/IN
all/DT
the/DT
precious/JJ
metals/NNS
had/VBD
risen/VBN
to/TO
levels/NNS
at/IN
which/WDT
there/EX
was/VBD
resistance/NN
to/TO
further/RBR
advance/NN
,/,
he/PRP
said/VBD
./.
The/DT
dollar/NN
was/VBD
also/RB
slightly/RB
firmer/JJR
and/CC
prompted/VBD
some/DT
selling/NN
,/,
as/IN
well/RB
,/,
according/VBG
to/TO
the/DT
analyst/NN
./.
Louisiana-Pacific/NNP
Corp./NNP
said/VBD
its/PRP$
board/NN
authorized/VBD
the/DT
purchase/NN
of/IN
as/RB
many/JJ
as/IN
five/CD
million/CD
of/IN
its/PRP$
common/JJ
shares/NNS
for/IN
employee/NN
stock/NN
plans/NNS
and/CC
other/JJ
general/JJ
corporate/JJ
purposes/NNS
./.
The/DT
forest-products/NNS
concern/NN
currently/RB
has/VBZ
about/RB
38/CD
million/CD
shares/NNS
outstanding/JJ
./.
In/IN
yesterday/NN
's/POS
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Louisiana-Pacific/NNP
shares/NNS
closed/VBD
at/IN
$/$
39.25/CD
,/,
down/RB
37.5/CD
cents/NNS
./.
When/WRB
the/DT
Supreme/NNP
Soviet/NNP
passed/VBD
laws/NNS
on/IN
workers/NNS
'/POS
rights/NNS
in/IN
May/NNP
1987/CD
and/CC
on/IN
self-managing/JJ
cooperatives/NNS
a/DT
year/NN
later/RBR
,/,
some/DT
Western/JJ
observers/NNS
assumed/VBD
Mikhail/NNP
Gorbachev/NNP
had/VBD
launched/VBN
the/DT
Soviet/NNP
Union/NNP
on/IN
a/DT
course/NN
that/WDT
would/MD
lead/VB
inevitably/RB
to/TO
the/DT
creation/NN
of/IN
a/DT
market/NN
economy/NN
./.
Their/PRP$
only/JJ
doubt/NN
concerned/VBD
the/DT
possibility/NN
that/IN
Mr./NNP
Gorbachev/NNP
might/MD
not/RB
survive/VB
the/DT
opposition/NN
that/IN
his/PRP$
reforms/NNS
would/MD
arouse/VB
and/CC
that/IN
the/DT
whole/JJ
process/NN
might/MD
be/VB
reversed/VBN
./.
If/IN
Mr./NNP
Gorbachev/NNP
's/POS
goal/NN
is/VBZ
the/DT
creation/NN
of/IN
a/DT
free/JJ
market/NN
,/,
he/PRP
and/CC
these/DT
Western/JJ
observers/NNS
have/VBP
good/JJ
reason/NN
to/TO
fear/VB
for/IN
his/PRP$
future/NN
,/,
as/IN
economic/JJ
liberalization/NN
within/IN
communist/JJ
societies/NNS
leads/VBZ
inexorably/RB
to/TO
demands/NNS
for/IN
fundamental/JJ
political/JJ
reform/NN
accompanied/VBN
by/IN
civil/JJ
unrest/NN
./.
These/DT
fears/NNS
were/VBD
clearly/RB
apparent/JJ
when/WRB
,/,
last/JJ
week/NN
,/,
Secretary/NNP
of/IN
State/NNP
James/NNP
Baker/NNP
blocked/VBD
a/DT
speech/NN
by/IN
Robert/NNP
Gates/NNP
,/,
deputy/JJ
national/JJ
security/NN
adviser/NN
and/CC
Soviet/NNP
expert/NN
,/,
on/IN
the/DT
ground/NN
that/IN
it/PRP
was/VBD
too/RB
pessimistic/JJ
about/IN
the/DT
chances/NNS
of/IN
Mr./NNP
Gorbachev/NNP
's/POS
economic/JJ
reforms/NNS
succeeding/VBG
./.
Yet/CC
the/DT
Soviet/JJ
leader/NN
's/POS
readiness/NN
to/TO
embark/VB
on/IN
foreign/JJ
visits/NNS
and/CC
steady/JJ
accumulation/NN
of/IN
personal/JJ
power/NN
,/,
particularly/RB
since/IN
the/DT
last/JJ
Politburo/NNP
reshuffle/NN
on/IN
Sept./NNP
30/CD
,/,
do/VBP
not/RB
suggest/VB
that/IN
Mr./NNP
Gorbachev/NNP
is/VBZ
on/IN
the/DT
verge/NN
of/IN
being/VBG
toppled/VBN
;/:
nor/CC
does/VBZ
he/PRP
look/VB
likely/RB
to/TO
reverse/VB
the/DT
powers/NNS
of/IN
perestroika/FW
./.
Indeed/RB
,/,
the/DT
Soviet/JJ
miners/NNS
strike/NN
this/DT
summer/NN
clearly/RB
demonstrated/VBD
that/IN
Mr./NNP
Gorbachev/NNP
must/MD
proceed/VB
with/IN
economic/JJ
reform/NN
./.
But/CC
is/VBZ
he/PRP
so/RB
clever/JJ
that/IN
he/PRP
has/VBZ
achieved/VBN
the/DT
political/JJ
equivalent/NN
of/IN
making/VBG
water/NN
run/VB
uphill/RB
?/.
And/CC
has/VBZ
he/PRP
truly/RB
persuaded/VBD
the/DT
Communist/NNP
Party/NNP
to/TO
accept/VB
economic/JJ
change/NN
of/IN
a/DT
kind/NN
that/WDT
will/MD
,/,
sooner/RB
or/CC
later/RB
,/,
lead/VB
to/TO
its/PRP$
demise/NN
?/.
An/DT
alternative/JJ
and/CC
more/RBR
convincing/JJ
explanation/NN
,/,
confirmed/VBN
by/IN
recent/JJ
events/NNS
and/CC
a/DT
close/JJ
inspection/NN
of/IN
the/DT
Gorbachev/NNP
program/NN
,/,
is/VBZ
that/IN
the/DT
new/JJ
Soviet/JJ
economic/JJ
and/CC
social/JJ
structures/NNS
are/VBP
intended/VBN
to/TO
conform/VB
to/TO
a/DT
model/NN
other/JJ
than/IN
that/DT
of/IN
the/DT
market/NN
./.
For/IN
example/NN
,/,
while/IN
the/DT
laws/NNS
on/IN
individual/JJ
labor/NN
activity/NN
allow/VBP
a/DT
citizen/NN
to/TO
earn/VB
a/DT
living/NN
independent/JJ
of/IN
the/DT
state/NN
,/,
strict/JJ
provisions/NNS
are/VBP
attached/VBN
on/IN
how/WRB
far/RB
this/DT
may/MD
lead/VB
to/TO
the/DT
development/NN
of/IN
a/DT
free/JJ
market/NN
./.
Before/IN
becoming/VBG
self-employed/JJ
,/,
or/CC
setting/VBG
up/RP
a/DT
cooperative/NN
,/,
workers/NNS
must/MD
seek/VB
permission/NN
from/IN
the/DT
local/JJ
soviet/JJ
council/NN
Permission/NN
is/VBZ
far/RB
from/IN
automatic/JJ
:/:
The/DT
soviets/NNS
have/VBP
the/DT
legal/JJ
right/NN
to/TO
turn/VB
down/RP
applications/NNS
and/CC
impose/VB
conditions/NNS
,/,
and/CC
they/PRP
appear/VBP
to/TO
be/VB
exercising/VBG
these/DT
powers/NNS
./.
Private/JJ
dressmaking/NN
,/,
for/IN
example/NN
,/,
is/VBZ
allowed/VBN
in/IN
10/CD
Soviet/JJ
republics/NNS
but/CC
banned/VBN
by/IN
five/CD
;/:
shoemaking/VBG
is/VBZ
allowed/VBN
in/IN
seven/CD
but/CC
illegal/JJ
in/IN
nine/CD
./.
The/DT
controls/NNS
on/IN
cooperatives/NNS
appeared/VBD
relatively/RB
liberal/JJ
when/WRB
first/RB
introduced/VBN
./.
But/CC
that/DT
changed/VBD
following/VBG
a/DT
resolution/NN
from/IN
the/DT
Supreme/NNP
Soviet/NNP
banning/VBG
cooperatives/NNS
from/IN
operating/VBG
in/IN
some/DT
areas/NNS
of/IN
the/DT
economy/NN
,/,
and/CC
permitting/VBG
activity/NN
in/IN
others/NNS
only/RB
if/IN
the/DT
cooperatives/NNS
are/VBP
under/IN
contract/NN
to/TO
the/DT
state/NN
./.
All/DT
independent/JJ
media/NNS
activity/NN
is/VBZ
now/RB
illegal/JJ
,/,
which/WDT
perhaps/RB
is/VBZ
not/RB
surprising/JJ
,/,
but/CC
so/RB
is/VBZ
the/DT
manufacture/NN
of/IN
perfume/NN
,/,
cosmetics/NNS
,/,
household/NN
chemicals/NNS
and/CC
sand/NN
candles/NNS
./.
Medical/JJ
cooperatives/NNS
,/,
among/IN
the/DT
most/RBS
successful/JJ
in/IN
the/DT
U.S.S.R./NNP
,/,
are/VBP
banned/VBN
from/IN
providing/VBG
general-practitioner/NN
services/NNS
their/PRP$
main/JJ
source/NN
of/IN
income/NN
surgery/NN
,/,
and/CC
treating/VBG
cancer/NN
patients/NNS
,/,
drug/NN
addicts/NNS
and/CC
pregnant/JJ
women/NNS
./.
Earlier/RB
this/DT
month/NN
,/,
the/DT
Supreme/NNP
Soviet/NNP
adopted/VBD
two/CD
more/JJR
resolutions/NNS
restricting/VBG
the/DT
freedom/NN
of/IN
cooperatives/NNS
:/:
The/DT
first/JJ
enables/VBZ
the/DT
soviets/NNS
to/TO
set/VB
prices/NNS
for/IN
which/WDT
goods/NNS
may/MD
be/VB
sold/VBN
;/:
the/DT
second/JJ
bans/VBZ
cooperatives/NNS
from/IN
buying/VBG
``/``
industrial/JJ
and/CC
food/NN
goods/NNS
''/''
from/IN
the/DT
state/NN
or/CC
other/JJ
cooperatives/NNS
./.
If/IN
Mr./NNP
Gorbachev/NNP
is/VBZ
looking/VBG
toward/IN
unleashing/VBG
the/DT
productive/JJ
forces/NNS
of/IN
the/DT
market/NN
,/,
these/DT
latest/JJS
resolutions/NNS
are/VBP
nothing/NN
short/JJ
of/IN
reckless/JJ
./.
Along/IN
with/IN
some/DT
other/JJ
revealing/JJ
indicators/NNS
,/,
these/DT
developments/NNS
suggest/VBP
that/IN
while/IN
Mr./NNP
Gorbachev/NNP
wishes/VBZ
to/TO
move/VB
away/RB
from/IN
some/DT
rigid/JJ
central/JJ
controls/NNS
,/,
he/PRP
is/VBZ
bent/JJ
on/IN
creating/VBG
economic/JJ
structures/NNS
of/IN
a/DT
kind/NN
that/WDT
would/MD
scarcely/RB
find/VB
favor/NN
with/IN
the/DT
Austrian/JJ
or/CC
Chicago/NNP
schools/NNS
of/IN
economic/JJ
thought/NN
./.
Mr./NNP
Gorbachev/NNP
has/VBZ
ruled/VBN
out/RP
the/DT
use/NN
of/IN
the/DT
market/NN
to/TO
solve/VB
the/DT
problem/NN
of/IN
insufficient/JJ
consumer/NN
goods/NNS
./.
He/PRP
told/VBD
the/DT
Congress/NNP
of/IN
People/NNS
's/POS
Deputies/NNS
on/IN
May/NNP
30/CD
:/:
``/``
We/PRP
do/VBP
not/RB
share/VB
this/DT
approach/NN
,/,
since/IN
it/PRP
would/MD
immediately/RB
destroy/VB
the/DT
social/JJ
situation/NN
and/CC
disrupt/VB
all/DT
the/DT
processes/NNS
in/IN
the/DT
country/NN
./.
''/''
Having/VBG
rejected/VBN
central/JJ
economic/JJ
planning/NN
for/IN
economic/JJ
reasons/NNS
,/,
and/CC
the/DT
market/NN
for/IN
fear/NN
of/IN
the/DT
social/JJ
political/JJ
consequences/NNS
,/,
Mr./NNP
Gorbachev/NNP
seeks/VBZ
a/DT
``/``
third/JJ
way/NN
''/''
that/WDT
would/MD
combine/VB
the/DT
discipline/NN
and/CC
controls/NNS
of/IN
the/DT
former/JJ
with/IN
the/DT
economic/JJ
benefits/NNS
of/IN
the/DT
latter/JJ
./.
Most/RBS
important/JJ
,/,
this/DT
would/MD
leave/VB
the/DT
party/NN
intact/JJ
and/CC
its/PRP$
monopoly/NN
of/IN
political/JJ
power/NN
largely/RB
undisturbed/JJ
./.
Indeed/RB
,/,
Mr./NNP
Gorbachev/NNP
's/POS
proposals/NNS
display/VBP
a/DT
close/JJ
conceptual/JJ
resemblance/NN
to/TO
the/DT
tenets/NNS
of/IN
Italian/JJ
fascism/NN
,/,
whose/WP$
architects/NNS
spoke/VBD
specifically/RB
of/IN
a/DT
``/``
third/JJ
way/NN
''/''
:/:
of/IN
having/VBG
produced/VBN
a/DT
historic/JJ
synthesis/NN
of/IN
socialism/NN
and/CC
capitalism/NN
./.
They/PRP
,/,
too/RB
,/,
promised/VBD
to/TO
combine/VB
economic/JJ
efficiency/NN
with/IN
order/NN
and/CC
discipline/NN
./.
The/DT
emergence/NN
of/IN
Russian/JJ
corporatism/NN
had/VBD
been/VBN
anticipated/VBN
in/IN
journalist/NN
George/NNP
Urban/NNP
's/POS
introduction/NN
to/TO
a/DT
series/NN
of/IN
colloquies/NNS
--/:
``/``
Can/MD
the/DT
Soviet/JJ
System/NN
Survive/VB
Reform/NN
?/.
''/''
--/:
published/VBN
this/DT
spring/NN
./.
``/``
Communism/NNP
will/MD
reach/VB
its/PRP$
final/JJ
stage/NN
of/IN
development/NN
in/IN
a/DT
feckless/JJ
Russo/NNP
--/:
corporation-socialist/JJ
in/IN
form/NN
,/,
nationalistic/JJ
in/IN
content/NN
and/CC
Oriental/JJ
in/IN
style/NN
--/:
that/WDT
will/MD
puzzle/VB
the/DT
world/NN
with/IN
alternating/VBG
feats/NNS
of/IN
realism/NN
and/CC
recklessness/NN
.../:
./.
''/''
The/DT
fascist/JJ
concept/NN
of/IN
corporatism/NN
envisaged/VBD
an/DT
``/``
organic/JJ
''/''
society/NN
in/IN
which/WDT
citizens/NNS
were/VBD
spiritually/RB
and/CC
morally/RB
unified/VBN
,/,
and/CC
prepared/VBD
to/TO
sacrifice/VB
themselves/PRP
for/IN
the/DT
nation/NN
./.
This/DT
unification/NN
was/VBD
to/TO
be/VB
brought/VBN
about/RP
through/IN
policies/NNS
and/CC
institutions/NNS
that/WDT
would/MD
unite/VB
workers/NNS
and/CC
employers/NNS
with/IN
government/NN
in/IN
a/DT
fully/RB
integrated/VBN
and/CC
``/``
harmonic/JJ
''/''
society/NN
./.
The/DT
key/NN
to/TO
the/DT
creation/NN
of/IN
the/DT
``/``
organic/JJ
''/''
state/NN
lay/VBD
in/IN
the/DT
formation/NN
of/IN
``/``
natural/JJ
''/''
groups/NNS
that/WDT
would/MD
undertake/VB
the/DT
role/NN
of/IN
decision-making/NN
./.
By/IN
contrast/NN
,/,
a/DT
parliamentary/JJ
system/NN
based/VBN
on/IN
abstract/JJ
political/JJ
rights/NNS
and/CC
groups/NNS
was/VBD
held/VBN
to/TO
cause/VB
,/,
rather/RB
than/IN
resolve/VB
,/,
conflict/NN
./.
The/DT
closeness/NN
of/IN
Soviet/JJ
perestroika/FW
to/TO
the/DT
fascist/JJ
social/JJ
blueprint/NN
of/IN
Mussolini/NNP
was/VBD
evident/JJ
when/WRB
Mr./NNP
Gorbachev/NNP
presented/VBD
his/PRP$
economic/JJ
vision/NN
to/TO
the/DT
Soviet/NNP
Congress/NNP
./.
In/IN
doing/VBG
so/RB
,/,
he/PRP
neither/RB
rejected/VBD
a/DT
socialist/JJ
planned/JJ
economy/NN
nor/CC
embraced/VBD
the/DT
free/JJ
market/NN
./.
Instead/RB
,/,
he/PRP
proposed/VBD
a/DT
``/``
law-governed/JJ
economy/NN
,/,
''/''
in/IN
which/WDT
there/EX
would/MD
be/VB
a/DT
``/``
clear-cut/JJ
division/NN
between/IN
state/NN
direction/NN
of/IN
the/DT
economy/NN
and/CC
economic/JJ
management/NN
./.
''/''
The/DT
latter/JJ
would/MD
be/VB
undertaken/VBN
by/IN
``/``
enterprises/NNS
,/,
joint/JJ
stock/NN
companies/NNS
and/CC
cooperatives/NNS
./.
''/''
These/DT
would/MD
not/RB
function/VB
independently/RB
,/,
but/CC
would/MD
act/VB
together/RB
to/TO
form/VB
``/``
combines/NNS
,/,
unions/NNS
and/CC
associations/NNS
''/''
to/TO
tackle/VB
problems/NNS
and/CC
coordinate/VB
their/PRP$
activities/NNS
./.
Mr./NNP
Gorbachev/NNP
is/VBZ
in/IN
a/DT
much/RB
stronger/JJR
position/NN
to/TO
pursue/VB
the/DT
corporatist/NN
ideal/NN
than/IN
was/VBD
Mussolini/NNP
,/,
who/WP
was/VBD
never/RB
able/JJ
to/TO
influence/VB
business/NN
giants/NNS
such/JJ
as/IN
Pirelli/NNP
and/CC
Fiat/NNP
./.
The/DT
Soviet/NNP
Communist/NNP
Party/NNP
has/VBZ
the/DT
power/NN
to/TO
shape/VB
corporate/JJ
development/NN
and/CC
mold/NN
it/PRP
into/IN
a/DT
body/NN
dependent/JJ
upon/IN
it/PRP
./.
To/TO
ensure/VB
the/DT
loyalty/NN
of/IN
the/DT
business/NN
sector/NN
,/,
Mr./NNP
Gorbachev/NNP
may/MD
offer/VB
concessions/NNS
and/CC
powers/NNS
that/WDT
will/MD
allow/VB
the/DT
business/NN
community/NN
to/TO
preserve/VB
its/PRP$
own/JJ
interests/NNS
,/,
probably/RB
by/IN
restricting/VBG
competition/NN
./.
However/RB
,/,
Mr./NNP
Gorbachev/NNP
must/MD
ensure/VB
that/IN
within/IN
this/DT
``/``
alliance/NN
''/''
the/DT
business/NN
sector/NN
remains/VBZ
subordinate/JJ
to/TO
the/DT
party/NN
./.
At/IN
the/DT
same/JJ
time/NN
,/,
he/PRP
must/MD
give/VB
it/PRP
sufficient/JJ
freedom/NN
to/TO
provide/VB
the/DT
economic/JJ
benefits/NNS
so/RB
desperately/RB
needed/VBN
./.
It/PRP
is/VBZ
the/DT
promise/NN
of/IN
economic/JJ
returns/NNS
that/WDT
is/VBZ
supposed/VBN
to/TO
make/VB
the/DT
corporatist/NN
model/NN
attractive/JJ
to/TO
both/DT
the/DT
party/NN
and/CC
labor/NN
./.
The/DT
work/NN
force/NN
provides/VBZ
the/DT
third/JJ
arm/NN
of/IN
the/DT
``/``
alliance/NN
./.
''/''
Within/IN
the/DT
alliance/NN
it/PRP
is/VBZ
supposed/VBN
to/TO
act/VB
as/IN
a/DT
balancing/VBG
force/NN
,/,
guarding/VBG
against/IN
excessive/JJ
control/NN
by/IN
government/NN
or/CC
abuse/NN
of/IN
its/PRP$
economic/JJ
position/NN
by/IN
business/NN
,/,
for/IN
either/DT
could/MD
result/VB
in/IN
a/DT
deterioration/NN
of/IN
its/PRP$
living/NN
standards/NNS
the/DT
new/JJ
resolutions/NNS
,/,
workers/NNS
councils/NNS
may/MD
demand/VB
that/IN
a/DT
cooperative/NN
be/VB
closed/VBN
or/CC
its/PRP$
prices/NNS
be/VB
reduced/VBN
)/)
./.
By/IN
providing/VBG
workers/NNS
with/IN
the/DT
opportunity/NN
to/TO
move/VB
into/IN
the/DT
private/JJ
sector/NN
where/WRB
wages/NNS
tend/VB
to/TO
be/VB
higher/JJR
,/,
and/CC
by/IN
holding/VBG
out/RP
the/DT
promise/NN
of/IN
more/JJR
consumer/NN
goods/NNS
,/,
Mr./NNP
Gorbachev/NNP
hopes/VBZ
to/TO
revive/VB
the/DT
popularity/NN
of/IN
the/DT
party/NN
./.
At/IN
the/DT
same/JJ
time/NN
,/,
the/DT
strategy/NN
requires/VBZ
that/IN
he/PRP
deal/VB
effectively/RB
with/IN
those/DT
who/WP
seek/VBP
genuine/JJ
Western-style/JJ
political/JJ
pluralism/NN
./.
The/DT
most/RBS
important/JJ
development/NN
in/IN
Mr./NNP
Gorbachev/NNP
's/POS
policy/NN
for/IN
marginalizing/VBG
the/DT
opposition/NN
movement/NN
is/VBZ
the/DT
claim/NN
that/IN
the/DT
U.S.S.R./NNP
also/RB
suffers/VBZ
from/IN
terrorism/NN
./.
An/DT
increasing/VBG
number/NN
of/IN
references/NNS
by/IN
the/DT
Soviet/JJ
press/NN
to/TO
opposition/NN
groups/NNS
now/RB
active/JJ
in/IN
the/DT
U.S.S.R./NNP
,/,
particularly/RB
the/DT
Democratic/NNP
Union/NNP
,/,
allege/VBP
that/IN
they/PRP
show/VBP
``/``
terroristic/JJ
tendencies/NNS
''/''
and/CC
claim/VBP
that/IN
they/PRP
would/MD
be/VB
prepared/VBN
to/TO
kill/VB
in/IN
order/NN
to/TO
achieve/VB
their/PRP$
aims/NNS
./.
It/PRP
is/VBZ
possible/JJ
that/IN
,/,
in/IN
perpetuating/VBG
such/JJ
myths/NNS
,/,
the/DT
ground/NN
is/VBZ
being/VBG
laid/VBN
for/IN
the/DT
arrest/NN
of/IN
opposition/NN
activists/NNS
on/IN
the/DT
ground/NN
of/IN
terrorism/NN
./.
Mr./NNP
Gorbachev/NNP
would/MD
appear/VB
to/TO
see/VB
his/PRP$
central/JJ
task/NN
,/,
however/RB
,/,
as/IN
that/DT
of/IN
ensuring/VBG
that/IN
foundations/NNS
of/IN
an/DT
alliance/NN
among/IN
labor/NN
,/,
capital/NN
and/CC
the/DT
state/NN
are/VBP
properly/RB
laid/VBN
before/RB
the/DT
demands/NNS
for/IN
a/DT
multiparty/NN
system/NN
reach/VBP
a/DT
crescendo/NN
./.
If/IN
he/PRP
were/VBD
able/JJ
to/TO
construct/VB
a/DT
popular/JJ
and/CC
efficient/JJ
corporatist/NN
system/NN
,/,
he/PRP
or/CC
his/PRP$
heir/NN
would/MD
be/VB
wellplaced/JJ
to/TO
rein/VB
in/RP
political/JJ
opposition/NN
,/,
and/CC
to/TO
re-establish/VB
control/NN
in/IN
Eastern/NNP
Europe/NNP
./.
The/DT
weaknesses/NNS
in/IN
his/PRP$
plan/NN
do/VBP
not/RB
lie/VB
in/IN
the/DT
political/JJ
calculations/NNS
--/:
Mr./NNP
Gorbachev/NNP
is/VBZ
a/DT
consummate/JJ
political/JJ
leader/NN
,/,
perhaps/RB
one/CD
of/IN
the/DT
greatest/JJS
--/:
but/CC
in/IN
its/PRP$
economic/JJ
prescription/NN
./.
Contrary/JJ
to/TO
widespread/JJ
belief/NN
,/,
Mussolini/NNP
failed/VBD
to/TO
live/VB
up/RP
to/TO
his/PRP$
promise/NN
to/TO
make/VB
the/DT
trains/NNS
run/VB
on/IN
time/NN
;/:
it/PRP
is/VBZ
doubtful/JJ
whether/IN
Soviet-style/JJ
corporatism/NN
will/MD
make/VB
Soviet/JJ
trains/NNS
run/VB
on/IN
time/NN
,/,
or/CC
fill/VB
the/DT
shops/NNS
with/IN
goods/NNS
that/IN
the/DT
consumers/NNS
so/RB
desperately/RB
crave/VBP
./.
Miss/NNP
Brady/NNP
is/VBZ
deputy/JJ
director/NN
of/IN
the/DT
Russian/NNP
Research/NNP
Foundation/NNP
in/IN
London/NNP
./.
New/JJ
construction/NN
contracting/NN
climbed/VBD
8/CD
%/NN
in/IN
September/NNP
to/TO
an/DT
annualized/VBN
$/$
274.2/CD
billion/CD
,/,
with/IN
commercial/JJ
,/,
industrial/JJ
and/CC
public-works/NNS
contracts/NNS
providing/VBG
most/JJS
of/IN
the/DT
increase/NN
,/,
according/VBG
to/TO
F.W./NNP
Dodge/NNP
Group/NNP
./.
Through/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
the/DT
year/NN
,/,
the/DT
unadjusted/JJ
total/NN
of/IN
all/DT
new/JJ
construction/NN
was/VBD
$/$
199.6/CD
billion/CD
,/,
flat/JJ
compared/VBN
with/IN
a/DT
year/NN
earlier/RBR
./.
The/DT
South/NNP
was/VBD
off/RB
2/CD
%/NN
after/IN
the/DT
first/JJ
nine/CD
months/NNS
,/,
while/IN
the/DT
North/NNP
Central/NNP
region/NN
was/VBD
up/RB
3/CD
%/NN
./.
The/DT
Northeast/NNP
and/CC
West/NNP
regions/NNS
were/VBD
unchanged/JJ
./.
A/DT
small/JJ
decline/NN
in/IN
total/JJ
construction/NN
for/IN
the/DT
entire/JJ
year/NN
is/VBZ
possible/JJ
if/IN
contracting/NN
for/IN
housing/NN
does/VBZ
n't/RB
increase/VB
in/IN
response/NN
to/TO
this/DT
year/NN
's/POS
lower/JJR
mortgage/NN
rates/NNS
,/,
said/VBD
George/NNP
A./NNP
Christie/NNP
,/,
vice/NN
president/NN
and/CC
chief/JJ
economist/NN
of/IN
Dodge/NNP
,/,
the/DT
forecasting/NN
division/NN
of/IN
publisher/NN
McGraw-Hill/NNP
Inc/NNP
./.
The/DT
seasonally/RB
adjusted/VBN
Dodge/NNP
Index/NNP
reached/VBD
175/CD
in/IN
September/NNP
,/,
its/PRP$
highest/JJS
level/NN
this/DT
year/NN
,/,
from/IN
162/CD
in/IN
August/NNP
./.
The/DT
index/NN
uses/VBZ
a/DT
base/NN
of/IN
100/CD
in/IN
1982/CD
./.
Newly/RB
contracted/VBN
residential/JJ
work/NN
edged/VBD
up/RB
2/CD
%/NN
in/IN
September/NNP
to/TO
an/DT
annualized/VBN
$/$
121.2/CD
billion/CD
,/,
largely/RB
because/IN
multifamily/JJ
building/VBG
rebounded/VBD
from/IN
a/DT
very/RB
weak/JJ
August/NNP
./.
``/``
At/IN
the/DT
end/NN
of/IN
the/DT
third/JJ
quarter/NN
,/,
there/EX
was/VBD
still/RB
no/DT
evidence/NN
of/IN
renewed/VBN
home/NN
building/VBG
in/IN
response/NN
to/TO
the/DT
midyear/NN
decline/NN
of/IN
mortgage/NN
rates/NNS
,/,
''/''
Mr./NNP
Christie/NNP
said/VBD
./.
Housing/NN
has/VBZ
been/VBN
weak/JJ
all/DT
year/NN
and/CC
especially/RB
so/RB
in/IN
the/DT
past/JJ
five/CD
months/NNS
./.
Contracting/VBG
for/IN
non-residential/JJ
buildings/NNS
rose/VBD
10/CD
%/NN
in/IN
September/NNP
to/TO
an/DT
annualized/VBN
$/$
100.8/CD
billion/CD
./.
Commercial/JJ
and/CC
industrial/JJ
construction/NN
rose/VBD
sharply/RB
,/,
partly/RB
because/IN
of/IN
three/CD
large/JJ
projects/NNS
,/,
each/DT
expected/VBN
to/TO
cost/VB
more/JJR
than/IN
$/$
100/CD
million/CD
./.
Institutional/JJ
building/VBG
,/,
such/JJ
as/IN
hospitals/NNS
and/CC
schools/NNS
,/,
eased/VBD
in/IN
September/NNP
following/VBG
a/DT
surge/NN
in/IN
August/NNP
./.
Although/IN
the/DT
third/JJ
quarter/NN
was/VBD
the/DT
best/JJS
so/RB
far/RB
this/DT
year/NN
for/IN
non-residential/JJ
building/VBG
,/,
weakness/NN
early/RB
in/IN
the/DT
year/NN
held/VBD
the/DT
nine-month/JJ
total/NN
to/TO
$/$
69.6/CD
billion/CD
,/,
up/RB
just/RB
1/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
./.
Public-works/NNS
and/CC
utility/NN
projects/NNS
,/,
also/RB
known/VBN
as/IN
non-building/JJ
contracting/NN
,/,
grew/VBD
18/CD
%/NN
to/TO
$/$
52.2/CD
billion/CD
in/IN
September/NNP
,/,
but/CC
the/DT
nine-month/JJ
total/NN
of/IN
$/$
36.9/CD
billion/CD
was/VBD
down/RB
3/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
./.
The/DT
Sept./NNP
30/CD
end/NN
of/IN
the/DT
federal/JJ
fiscal/JJ
year/NN
may/MD
have/VB
prodded/VBN
contractors/NNS
to/TO
get/VB
any/DT
behind-schedule/JJ
road/NN
and/CC
bridge/NN
construction/NN
under/IN
way/NN
``/``
before/IN
the/DT
clock/NN
ran/VBD
out/RP
,/,
''/''
Mr./NNP
Christie/NNP
said/VBD
,/,
referring/VBG
to/TO
threatened/VBN
5/CD
%/NN
across-the-board/JJ
budget/NN
cuts/NNS
./.
a/SYM
-/:
Monthly/JJ
construction/NN
contract/NN
values/NNS
are/VBP
reported/VBN
on/IN
an/DT
annualized/VBN
,/,
seasonally/RB
adjusted/VBN
basis/NN
./.
Moody/NNP
's/POS
Investors/NNP
Service/NNP
Inc./NNP
said/VBD
it/PRP
lowered/VBD
ratings/NNS
on/IN
long-term/JJ
debt/NN
of/IN
CS/NNP
First/NNP
Boston/NNP
Inc./NNP
,/,
the/DT
holding/VBG
company/NN
of/IN
Wall/NNP
Street/NNP
giant/JJ
First/NNP
Boston/NNP
Corp./NNP
,/,
because/IN
of/IN
First/NNP
Boston/NNP
's/POS
``/``
aggressive/JJ
merchant/NN
banking/NN
risk/NN
''/''
in/IN
highly/RB
leveraged/VBN
takeovers/NNS
./.
In/IN
downgrading/VBG
CS/NNP
First/NNP
Boston/NNP
's/POS
subordinated/VBN
domestic/NN
,/,
Euromarket/NNP
and/CC
Swiss/JJ
debt/NN
to/TO
single-A-3/NN
from/IN
single-A-2/NN
,/,
Moody/NNP
's/POS
is/VBZ
matching/VBG
a/DT
move/NN
made/VBN
by/IN
the/DT
other/JJ
major/JJ
credit/NN
rating/NN
concern/NN
,/,
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NNP
,/,
several/JJ
months/NNS
ago/RB
./.
Moody/NNP
's/VBZ
also/RB
confirmed/VBN
the/DT
Prime-1/NN
rating/NN
,/,
its/PRP$
highest/JJS
,/,
on/IN
CS/NNP
First/NNP
Boston/NNP
's/POS
commercial/JJ
paper/NN
,/,
or/CC
short-term/JJ
corporate/JJ
IOUs/NNS
./.
In/IN
addition/NN
,/,
Moody/NNP
's/VBZ
said/VBD
it/PRP
downgraded/VBD
Financiere/NNP
Credit/NNP
Suisse-First/NNP
Boston/NNP
's/POS
senior/JJ
and/CC
subordinated/VBD
Swiss/JJ
debt/NN
to/TO
single-A-2/JJ
from/IN
single-A-1/JJ
and/CC
lowered/VBD
Financiere/NNP
CSFB/NNP
N.V./NNP
's/POS
junior/JJ
subordinated/VBN
perpetual/JJ
Eurodebt/NNP
,/,
guaranteed/VBN
by/IN
Financiere/NNP
Credit/NNP
Suisse/NNP
--/:
First/NNP
Boston/NNP
,/,
to/TO
single-A-3/NN
from/IN
single-A-2/NN
./.
About/RB
$/$
550/CD
million/CD
of/IN
long-term/JJ
debt/NN
is/VBZ
affected/VBN
,/,
according/VBG
to/TO
Moody/NNP
's/POS
./.
A/DT
spokesman/NN
for/IN
CS/NNP
First/NNP
Boston/NNP
said/VBD
:/:
``/``
We/PRP
remain/VBP
committed/JJ
to/TO
a/DT
full/JJ
range/NN
of/IN
businesses/NNS
,/,
including/VBG
merchant/NN
banking/NN
./.
We/PRP
think/VBP
that/IN
the/DT
ratings/NNS
revision/NN
is/VBZ
unfortunate/JJ
but/CC
not/RB
unexpected/JJ
./.
Our/PRP$
commitment/NN
to/TO
manage/VB
these/DT
businesses/NNS
profitably/RB
will/MD
continue/VB
./.
''/''
First/NNP
Boston/NNP
's/POS
merchant/NN
banking/NN
risks/NNS
mounted/VBD
last/JJ
month/NN
as/RB
highly/RB
leveraged/VBN
Campeau/NNP
Corp./NNP
,/,
First/NNP
Boston/NNP
's/POS
most/RBS
lucrative/JJ
client/NN
of/IN
the/DT
decade/NN
,/,
was/VBD
hit/VBN
by/IN
a/DT
cash/NN
squeeze/NN
and/CC
the/DT
high-risk/JJ
junk/NN
bond/NN
market/NN
tumbled/VBD
./.
First/NNP
Boston/NNP
incurred/VBN
millions/NNS
of/IN
dollars/NNS
of/IN
losses/NNS
on/IN
Campeau/NNP
securities/NNS
it/PRP
owned/VBD
as/RB
well/RB
as/IN
on/IN
special/JJ
securities/NNS
it/PRP
could/MD
n't/RB
sell/VB
./.
First/NNP
Boston/NNP
financings/NNS
for/IN
several/JJ
other/JJ
highly/RB
leveraged/JJ
clients/NNS
,/,
including/VBG
Ohio/NNP
Mattress/NNP
,/,
unraveled/VBD
as/IN
the/DT
high-risk/JJ
junk/NN
bond/NN
market/NN
plummeted/VBD
./.
Moody/JJ
's/POS
said/VBD
its/PRP$
rating/NN
changes/NNS
actions/NNS
``/``
reflect/VBP
CS/NNP
First/NNP
Boston/NNP
's/POS
aggressive/JJ
merchant/NN
banking/VBG
risk/NN
as/RB
well/RB
as/IN
the/DT
risk/NN
profile/NN
of/IN
its/PRP$
current/JJ
merchant/NN
banking/NN
exposures/NNS
./.
''/''
It/PRP
said/VBD
CS/NNP
First/NNP
Boston/NNP
``/``
has/VBZ
consistently/RB
been/VBN
one/CD
of/IN
the/DT
most/RBS
aggressive/JJ
firms/NNS
in/IN
merchant/NN
banking/NN
''/''
and/CC
that/IN
``/``
a/DT
very/RB
significant/JJ
portion/NN
''/''
of/IN
the/DT
firm/NN
's/POS
profit/NN
in/IN
recent/JJ
years/NNS
has/VBZ
come/VBN
from/IN
merchant/NN
banking-related/JJ
business/NN
./.
``/``
Moody/NNP
's/POS
believes/VBZ
that/IN
the/DT
uncertain/JJ
environment/NN
for/IN
merchant/NN
banking/NN
could/MD
put/VB
pressure/NN
on/IN
CS/NNP
First/NNP
Boston/NNP
's/POS
performance/NN
,/,
''/''
the/DT
rating/NN
concern/NN
said/VBD
,/,
citing/VBG
``/``
continued/VBN
problems/NNS
''/''
from/IN
the/DT
firm/NN
's/POS
exposures/NNS
to/TO
``/``
various/JJ
Campeau-related/JJ
firms/NNS
''/''
and/CC
to/TO
Ohio/NNP
Mattress/NNP
./.
``/``
These/DT
two/CD
exposures/NNS
alone/RB
represent/VBP
a/DT
very/RB
substantial/JJ
portion/NN
of/IN
CS/NNP
First/NNP
Boston/NNP
's/POS
equity/NN
,/,
''/''
Moody/NNP
's/POS
said/VBD
./.
``/``
Total/JJ
merchant/NN
banking/NN
exposures/NNS
are/VBP
in/IN
excess/NN
of/IN
the/DT
firm/NN
's/POS
equity/NN
./.
''/''
Quotron/NNP
Systems/NNP
Inc./NNP
plans/VBZ
to/TO
cut/VB
about/RB
400/CD
,/,
or/CC
16/CD
%/NN
,/,
of/IN
its/PRP$
2,500/CD
employees/NNS
over/IN
the/DT
next/JJ
several/JJ
months/NNS
./.
``/``
This/DT
action/NN
will/MD
continue/VB
to/TO
keep/VB
operating/NN
expenses/NNS
in/IN
line/NN
''/''
with/IN
revenue/NN
,/,
said/VBD
J./NNP
David/NNP
Hann/NNP
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
Los/NNP
Angeles-based/JJ
Quotron/NNP
./.
The/DT
move/NN
by/IN
the/DT
financial/JJ
information/NN
and/CC
services/NNS
subsidiary/NN
of/IN
Citicorp/NNP
is/VBZ
a/DT
``/``
response/NN
to/TO
changing/VBG
conditions/NNS
in/IN
the/DT
retail/JJ
securities/NNS
industry/NN
,/,
which/WDT
has/VBZ
been/VBN
contracting/VBG
''/''
since/IN
October/NNP
1987/CD
's/POS
stock/NN
market/NN
crash/NN
,/,
the/DT
executive/NN
added/VBD
./.
Quotron/NNP
,/,
which/WDT
Citicorp/VB
purchased/VBD
in/IN
1986/CD
,/,
provides/VBZ
price/NN
quotations/NNS
for/IN
securities/NNS
,/,
particularly/RB
stocks/NNS
./.
Quotron/NNP
also/RB
provides/VBZ
trading/NN
and/CC
other/JJ
systems/NNS
,/,
services/NNS
for/IN
brokerage/NN
firms/NNS
,/,
and/CC
communications-network/JJ
services/NNS
./.
Independent/JJ
providers/NNS
of/IN
financial/JJ
information/NN
,/,
including/VBG
Quotron/NN
,/,
have/VBP
been/VBN
under/IN
some/DT
pressure/NN
as/IN
the/DT
major/JJ
securities/NNS
houses/NNS
try/VBP
to/TO
regain/VB
their/PRP$
hold/NN
on/IN
the/DT
production/NN
of/IN
market/NN
data/NNS
and/CC
on/IN
the/DT
related/JJ
revenue/NN
./.
Shearson/NNP
,/,
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
,/,
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
and/CC
Salomon/NNP
Inc./NNP
are/VBP
discussing/VBG
formation/NN
of/IN
a/DT
group/NN
to/TO
sell/VB
securities-price/JJ
data/NNS
./.
The/DT
job/NN
cuts/NNS
,/,

to/TO
be/VB
made/VBN
in/IN
a/DT
number/NN
of/IN
areas/NNS
at/IN
various/JJ
job/NN
levels/NNS
,/,
are/VBP
``/``
a/DT
streamlining/NN
of/IN
operations/NNS
,/,
''/''
a/DT
spokeswoman/NN
said/VBD
./.
The/DT
company/NN
has/VBZ
no/DT
immediate/JJ
plans/NNS
to/TO
close/VB
any/DT
operations/NNS
,/,
she/PRP
said/VBD
,/,
but/CC
Quotron/NNP
may/MD
subcontract/VB
some/DT
work/NN
that/IN
it/PRP
has/VBZ
been/VBN
doing/VBG
in-house/NN
,/,
including/VBG
refurbishment/NN
and/CC
production/NN
of/IN
Quotron/NNP
1000/CD
equipment/NN
used/VBN
in/IN
delivering/VBG
financial/JJ
data/NNS
./.
The/DT
spokeswoman/NN
said/VBD
the/DT
move/NN
is/VBZ
n't/RB
directly/RB
a/DT
response/NN
to/TO
Quotron/NNP
's/POS
loss/NN
of/IN
its/PRP$
two/CD
biggest/JJS
customers/NNS
,/,
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
and/CC
American/NNP
Express/NNP
Co./NNP
's/POS
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
,/,
to/TO
Automated/NNP
Data/NNP
Processing/NNP
Inc./NNP
earlier/RB
this/DT
year/NN
./.
The/DT
spokeswoman/NN
noted/VBD
that/DT
last/JJ
week/NN
,/,
Kidder/NNP
,/,
Peabody/NNP
&/CC
Co./NNP
,/,
the/DT
securities/NNS
subsidiary/NN
of/IN
General/NNP
Electric/NNP
Co./NNP
,/,
chose/VBD
a/DT
Quotron/NNP
subsidiary/NN
to/TO
provide/VB
order-processing/JJ
services/NNS
./.
And/CC
Oct./NNP
24/CD
,/,
Quotron/NNP
said/VBD
it/PRP
will/MD
market/VB
the/DT
automated/VBN
trading/NN
system/NN
of/IN
broker-dealer/JJ
Chapdelaine/NNP
Government/NNP
Securities/NNP
Inc/NNP
./.
Quotron/NNP
is/VBZ
n't/RB
profitable/JJ
on/IN
Citicorp/NNP
's/POS
books/NNS
because/IN
of/IN
the/DT
interest/NN
charges/VBZ
the/DT
New/NNP
York/NNP
bank/NN
holding/VBG
company/NN
incurred/VBD
in/IN
buying/VBG
the/DT
financial-data/JJ
concern/NN
for/IN
$/$
680/CD
million/CD
,/,
says/VBZ
Ronald/NNP
I./NNP
Mandle/NNP
,/,
analyst/NN
for/IN
Sanford/NNP
C./NNP
Bernstein/NNP
&/CC
Co/NNP
./.
But/CC
Citicorp/NNP
``/``
does/VBZ
view/VB
Quotron/NNP
crucial/JJ
to/TO
the/DT
financial-services/NNS
business/NN
in/IN
the/DT
1990s/CD
,/,
''/''
the/DT
analyst/NN
added/VBD
./.
This/DT
past/NN
summer/NN
,/,
Quotron/NNP
sold/VBD
its/PRP$
customer-service/JJ
unit/NN
,/,
employing/VBG
600/CD
,/,
to/TO
Phoenix/NNP
Technologies/NNP
Inc./NNP
,/,
a/DT
closely/RB
held/VBN
computer-service/JJ
firm/NN
in/IN
Valley/NNP
Forge/NNP
,/,
Pa/NNP
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
The/DT
Oakland/NNP
Athletics/NNP
'/POS
four-game/JJ
sweep/NN
over/IN
the/DT
San/NNP
Francisco/NNP
Giants/NNP
in/IN
the/DT
World/NNP
Series/NNP
may/MD
widen/VB
already-sizable/JJ
losses/NNS
that/IN
the/DT
ABC/NNP
network/NN
will/MD
incur/VB
on/IN
the/DT
current/JJ
,/,
final/JJ
year/NN
of/IN
its/PRP$
baseball/NN
contract/NN
./.
The/DT
1989/CD
Series/NNP
,/,
disrupted/VBN
by/IN
a/DT
devastating/VBG
earthquake/NN
and/CC
diminished/VBN
in/IN
national/JJ
interest/NN
because/IN
both/DT
teams/NNS
came/VBD
from/IN
the/DT
San/NNP
Francisco/NNP
Bay/NNP
area/NN
,/,
is/VBZ
likely/JJ
to/TO
end/VB
up/RP
as/IN
the/DT
lowest-rated/JJ
Series/NNP
of/IN
this/DT
decade/NN
and/CC
probably/RB
since/IN
the/DT
event/NN
has/VBZ
been/VBN
broadcast/VBN
./.
The/DT
first/JJ
three/CD
games/NNS
were/VBD
seen/VBN
by/IN
an/DT
average/NN
of/IN
only/JJ
17/CD
%/NN
of/IN
U.S./NNP
homes/NNS
,/,
a/DT
sharp/JJ
decline/NN
from/IN
the/DT
23.7/CD
%/NN
rating/NN
for/IN
last/JJ
year/NN
's/POS
Series/NNP
./.
A/DT
final/JJ
ratings/NNS
tally/NN
from/IN
A.C./NNP
Nielsen/NNP
Co./NNP
is/VBZ
due/JJ
today/NN
./.
The/DT
sweep/NN
by/IN
the/DT
A's/NNP
,/,
whose/WP$
pitchers/NNS
and/CC
home-run/NN
hitters/NNS
dominated/VBD
the/DT
injury-prone/JJ
Giants/NNP
,/,
will/MD
only/RB
make/VB
things/NNS
worse/JJR
for/IN
ABC/NNP
,/,
owned/VBN
by/IN
Capital/NNP
Cities\/ABC/NNP
Inc/NNP
./.
The/DT
network/NN
had/VBD
been/VBN
expected/VBN
to/TO
have/VB
losses/NNS
of/IN
as/RB
much/JJ
as/IN
$/$
20/CD
million/CD
on/IN
baseball/NN
this/DT
year/NN
./.
It/PRP
is/VBZ
n't/RB
clear/JJ
how/WRB
much/RB
those/DT
losses/NNS
may/MD
widen/VB
because/RB
of/IN
the/DT
short/JJ
Series/NNP
./.
Had/VBD
the/DT
contest/NN
gone/VBN
a/DT
full/JJ
seven/CD
games/NNS
,/,
ABC/NNP
could/MD
have/VB
reaped/VBN
an/DT
extra/JJ
$/$
10/CD
million/CD
in/IN
ad/NN
sales/NNS
on/IN
the/DT
seventh/JJ
game/NN
alone/RB
,/,
compared/VBN
with/IN
the/DT
ad/NN
take/NN
it/PRP
would/MD
have/VB
received/VBN
for/IN
regular/JJ
prime-time/NN
shows/NNS
./.
ABC/NNP
had/VBD
based/VBN
its/PRP$
budget/NN
for/IN
baseball/NN
on/IN
a/DT
six-game/JJ
Series/NNP
./.
A/DT
network/NN
spokesman/NN
would/MD
n't/RB
comment/VB
,/,
and/CC
ABC/NNP
Sports/NNP
officials/NNS
declined/VBD
to/TO
be/VB
interviewed/VBN
./.
But/CC
some/DT
industry/NN
executives/NNS
said/VBD
ABC/NNP
,/,
in/IN
anticipation/NN
of/IN
a/DT
four-game/JJ
sweep/NN
,/,
limited/VBD
its/PRP$
losses/NNS
by/IN
jacking/VBG
up/RP
the/DT
number/NN
of/IN
commercials/NNS
it/PRP
aired/VBD
in/IN
the/DT
third/JJ
and/CC
fourth/JJ
games/NNS
./.
A/DT
World/NNP
Series/NNP
telecast/NN
typically/RB
carries/VBZ
56/CD
30-second/JJ
commercials/NNS
,/,
but/CC
by/IN
the/DT
fourth/JJ
game/NN
ABC/NNP
was/VBD
cramming/VBG
in/RP
60/CD
to/TO
62/CD
ads/NNS
to/TO
generate/VB
extra/JJ
revenue/NN
./.
ABC/NNP
's/POS
baseball/NN
experience/NN
may/MD
be/VB
of/IN
interest/NN
to/TO
CBS/NNP
Inc./NNP
,/,
which/WDT
next/JJ
season/NN
takes/VBZ
over/RP
the/DT
broadcasting/NN
of/IN
all/DT
baseball/NN
playoffs/NNS
in/IN
a/DT
four-year/JJ
television/NN
contract/NN
priced/VBN
at/IN
$/$
1.06/CD
billion/CD
./.
CBS/NNP
Sports/NNP
President/NNP
Neal/NNP
Pilson/NNP
has/VBZ
conceded/VBN
only/RB
that/IN
CBS/NNP
will/MD
have/VB
a/DT
loss/NN
in/IN
the/DT
first/JJ
year/NN
./.
But/CC
other/JJ
industry/NN
executives/NNS
contend/VBP
the/DT
losses/NNS
could/MD
reach/VB
$/$
250/CD
million/CD
over/IN
four/CD
years/NNS
and/CC
could/MD
go/VB
even/RB
higher/RBR
if/IN
the/DT
World/NNP
Series/NNP
end/VBP
in/IN
four-game/JJ
romps/NNS
./.
The/DT
Series/NNP
typically/RB
is/VBZ
among/IN
the/DT
highest-rated/JJ
sports/NNS
events/NNS
on/IN
television/NN
./.
Last/JJ
year/NN
's/POS
series/NN
,/,
broadcast/VBN
by/IN
General/NNP
Electric/NNP
Co./NNP
's/POS
NBC/NNP
,/,
was/VBD
the/DT
lowest-rated/JJ
Series/NNP
in/IN
four/CD
years/NNS
;/:
instead/RB
of/IN
featuring/VBG
a/DT
major/JJ
East/NNP
Coast/NNP
team/NN
against/IN
a/DT
West/NNP
Coast/NNP
team/NN
,/,
it/PRP
pitted/VBD
the/DT
Los/NNP
Angeles/NNP
Dodgers/NNP
against/IN
the/DT
losing/NN
Oakland/NNP
A's/NNP
./.
ABC/NNP
's/POS
hurdle/NN
was/VBD
even/RB
higher/JJR
this/DT
year/NN
with/IN
two/CD
teams/NNS
from/IN
the/DT
same/JJ
area/NN
./.
The/DT
Series/NNP
got/VBD
off/IN
to/TO
a/DT
lukewarm/JJ
start/NN
Oct./NNP
14/CD
with/IN
a/DT
16.2/CD
%/NN
rating/NN
;/:
the/DT
next/JJ
night/NN
it/PRP
drew/VBD
17.4/CD
%/NN
of/IN
homes/NNS
./.
Then/RB
came/VBD
the/DT
earthquake/NN
and/CC
a/DT
damaging/JJ
delay/NN
of/IN
11/CD
days/NNS
./.
Some/DT
people/NNS
had/VBD
hoped/VBN
ABC/NNP
's/POS
ratings/NNS
would/MD
go/VB
up/RB
because/RB
of/IN
the/DT
intense/JJ
focus/NN
on/IN
the/DT
event/NN
in/IN
the/DT
aftermath/NN
of/IN
the/DT
earthquake/NN
./.
An/DT
analyst/NN
's/POS
opinion/NN
to/TO
that/DT
effect/NN
even/RB
sent/VBD
Capital/NNP
Cities\/ABC/NNP
shares/NNS
soaring/VBG
two/CD
weeks/NNS
ago/RB
./.
But/CC
interest/NN
instead/RB
decreased/VBD
./.
The/DT
third/JJ
game/NN
,/,
last/JJ
Friday/NNP
night/NN
,/,
drew/VBD
a/DT
disappointing/JJ
17.5/CD
rating/NN
./.
Bargain/NN
hunters/NNS
helped/VBD
stock/NN
prices/NNS
break/VB
a/DT
weeklong/NN
losing/NN
streak/NN
while/IN
bond/NN
prices/NNS
and/CC
the/DT
dollar/NN
inched/VBD
higher/RBR
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
gained/VBD
6.76/CD
points/NNS
to/TO
2603.48/CD
in/IN
light/NN
trading/NN
after/IN
losing/VBG
more/JJR
than/IN
92/CD
points/NNS
last/JJ
week/NN
./.
Bond/NN
prices/NNS
continued/VBD
to/TO
edge/VB
higher/RBR
in/IN
anticipation/NN
of/IN
more/JJR
news/NN
showing/VBG
a/DT
slower/JJR
economy/NN
./.
Although/IN
the/DT
dollar/NN
rose/VBD
slightly/RB
against/IN
most/JJS
major/JJ
currencies/NNS
,/,
the/DT
focus/NN
in/IN
currency/NN
markets/NNS
was/VBD
on/IN
the/DT
beleaguered/JJ
British/JJ
pound/NN
,/,
which/WDT
gained/VBD
slightly/RB
against/IN
the/DT
dollar/NN
./.
Trading/NN
volume/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
dwindled/VBD
to/TO
only/RB
126.6/CD
million/CD
shares/NNS
yesterday/NN
as/IN
major/JJ
brokerage/NN
firms/NNS
continued/VBD
to/TO
throw/VB
in/RP
the/DT
towel/NN
on/IN
program/NN
trading/NN
./.
Kidder/NNP
Peabody/NNP
became/VBD
the/DT
most/RBS
recent/JJ
firm/NN
to/TO
swear/VB
off/RP
stock-index/JJ
arbitrage/NN
trading/NN
for/IN
its/PRP$
own/JJ
account/NN
,/,
and/CC
Merrill/NNP
Lynch/NNP
late/JJ
yesterday/NN
took/VBD
the/DT
major/JJ
step/NN
of/IN
renouncing/VBG
the/DT
trading/NN
strategy/NN
even/RB
for/IN
its/PRP$
clients/NNS
./.
Yet/CC
that/DT
did/VBD
n't/RB
eliminate/VB
program/NN
trading/NN
from/IN
the/DT
market/NN
./.
The/DT
Dow/NNP
industrials/NNS
shot/VBN
up/RB
23/CD
points/NNS
in/IN
the/DT
opening/NN
hour/NN
,/,
at/IN
least/JJS
in/IN
part/NN
because/IN
of/IN
buy/NN
programs/NNS
generated/VBN
by/IN
stock-index/JJ
arbitrage/NN
,/,
a/DT
form/NN
of/IN
program/NN
trading/NN
involving/VBG
futures/NNS
contracts/NNS
./.
But/CC
interest/NN
waned/VBD
as/IN
the/DT
day/NN
wore/VBD
on/RB
and/CC
investors/NNS
looked/VBD
ahead/RB
to/TO
the/DT
release/NN
later/RB
this/DT
week/NN
of/IN
two/CD
important/JJ
economic/JJ
reports/NNS
./.
The/DT
first/JJ
is/VBZ
Wednesday/NNP
's/POS
survey/NN
of/IN
purchasing/NN
managers/NNS
,/,
considered/VBD
a/DT
good/JJ
indicator/NN
of/IN
how/WRB
the/DT
nation/NN
's/POS
manufacturing/NN
sector/NN
fared/VBD
in/IN
October/NNP
./.
The/DT
other/JJ
is/VBZ
Friday/NNP
's/POS
measure/NN
of/IN
October/NNP
employment/NN
,/,
an/DT
indicator/NN
of/IN
the/DT
broader/JJR
economy/NN
's/POS
health/NN
./.
Both/DT
are/VBP
expected/VBN
to/TO
show/VB
continued/JJ
sluggishness/NN
,/,
which/WDT
would/MD
be/VB
good/JJ
for/IN
bonds/NNS
and/CC
bad/JJ
for/IN
stocks/NNS
./.
In/IN
major/JJ
market/NN
activity/NN
:/:
Stock/NN
prices/NNS
rose/VBD
in/IN
light/JJ
trading/NN
./.
But/CC
declining/VBG
issues/NNS
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
outnumbered/VBD
gainers/NNS
774/CD
to/TO
684/CD
,/,
and/CC
broader/JJR
market/NN
indexes/NNS
were/VBD
virtually/RB
unchanged/JJ
./.
Bond/NN
prices/NNS
crept/VBD
higher/RBR
./.
The/DT
Treasury/NNP
's/POS
benchmark/NN
30-year/CD
bond/NN
gained/VBN
about/RB
an/DT
eighth/JJ
of/IN
a/DT
point/NN
,/,
or/CC
about/RB
$/$
1.25/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
./.
The/DT
yield/NN
on/IN
the/DT
issue/NN
slipped/VBD
to/TO
7.92/CD
%/NN
./.
The/DT
dollar/NN
gained/VBD
./.
In/IN
late/JJ
New/NNP
York/NNP
trading/NN
the/DT
dollar/NN
was/VBD
quoted/VBN
at/IN
1.8340/CD
marks/NNS
and/CC
141.90/CD
yen/NNS
,/,
compared/VBN
with/IN
1.8300/CD
marks/NNS
and/CC
141.65/CD
yen/NNS
Friday/NNP
./.
The/DT
British/JJ
pound/NN
,/,
pressured/VBN
by/IN
last/JJ
week/NN
's/POS
resignations/NNS
of/IN
key/JJ
Thatcher/NNP
administration/NN
officials/NNS
,/,
nevertheless/RB
rose/VBD
Monday/NNP
to/TO
$/$
1.5820/CD
from/IN
Friday/NNP
's/POS
$/$
1.5795/CD
./.
If/IN
Japanese/JJ
companies/NNS
are/VBP
so/RB
efficient/JJ
,/,
why/WRB
does/VBZ
Kawasaki-Rikuso/NNP
Transportation/NNP
Co./NNP
sometimes/RB
need/VB
a/DT
week/NN
just/RB
to/TO
tell/VB
its/PRP$
clients/NNS
how/WRB
soon/RB
it/PRP
can/MD
ship/VB
goods/NNS
from/IN
here/RB
to/TO
Osaka/NNP
?/.
Why/WRB
,/,
until/IN
last/JJ
spring/NN
,/,
did/VBD
the/DT
Long-Term/NNP
Credit/NNP
Bank/NNP
of/IN
Japan/NNP
sometimes/RB
take/VB
several/JJ
days/NNS
to/TO
correct/VB
typographical/JJ
errors/NNS
in/IN
its/PRP$
paper/NN
work/NN
for/IN
international/JJ
transactions/NNS
?/.
Because/IN
the/DT
companies/NNS
have/VBP
lacked/VBN
office/NN
computers/NNS
considered/VBN
standard/JJ
equipment/NN
in/IN
the/DT
U.S./NNP
and/CC
Western/NNP
Europe/NNP
,/,
Japanese/JJ
corporations/NNS
'/POS
reputation/NN
as/IN
hi-tech/JJ
powerhouses/NNS
is/VBZ
only/RB
half/RB
right/JJ
./.
Their/PRP$
factories/NNS
may/MD
look/VB
like/IN
sets/NNS
for/IN
a/DT
Spielberg/NNP
movie/NN
,/,
but/CC
their/PRP$
offices/NNS
,/,
with/IN
rows/NNS
of/IN
clerks/NNS
hunched/VBN
over/IN
ledgers/NNS
and/CC
abacuses/NNS
,/,
are/VBP
more/RBR
like/IN
scenes/NNS
from/IN
a/DT
Dickens/NNP
novel/NN
./.
Now/RB
,/,
the/DT
personal-computer/NN
revolution/NN
is/VBZ
finally/RB
reaching/VBG
Japan/NNP
./.
Kawasaki-Rikuso/NNP
,/,
a/DT
freight/NN
company/NN
,/,
set/VBD
up/RP
its/PRP$
own/JJ
software/NN
subsidiary/NN
this/DT
year/NN
and/CC
is/VBZ
spending/VBG
nearly/RB
a/DT
year/NN
's/POS
profit/NN
to/TO
more/RBR
than/IN
double/RB
the/DT
computer/NN
terminals/NNS
at/IN
its/PRP$
main/JJ
office/NN
./.
In/IN
April/NNP
,/,
the/DT
Long-Term/NNP
Credit/NNP
Bank/NNP
linked/VBD
its/PRP$
computers/NNS
in/IN
Tokyo/NNP
with/IN
its/PRP$
three/CD
American/JJ
offices/NNS
./.
Overall/JJ
,/,
PC/NN
sales/NNS
in/IN
Japan/NNP
in/IN
the/DT
first/JJ
half/NN
of/IN
1989/CD
were/VBD
34/CD
%/NN
higher/JJR
than/IN
in/IN
the/DT
year-earlier/JJ
period/NN
./.
Combined/JJ
PC/NN
and/CC
work-station/NN
use/NN
in/IN
Japan/NNP
will/MD
jump/VB
as/RB
much/JJ
as/IN
25/CD
%/NN
annually/RB
over/IN
the/DT
next/JJ
five/CD
years/NNS
,/,
according/VBG
to/TO
some/DT
analysts/NNS
,/,
compared/VBN
with/IN
about/RB
10/CD
%/NN
in/IN
the/DT
U.S/NNP
./.
And/CC
with/IN
a/DT
labor/NN
shortage/NN
and/CC
intense/JJ
competitive/JJ
pressure/NN
to/TO
improve/VB
efficiency/NN
,/,
more/JJR
and/CC
more/JJR
Japanese/JJ
companies/NNS
are/VBP
concluding/VBG
that/IN
they/PRP
have/VBP
no/DT
choice/NN
./.
``/``
We/PRP
have/VBP
too/RB
many/JJ
people/NNS
in/IN
our/PRP$
home/NN
offices/NNS
,/,
''/''
says/VBZ
Yoshio/NNP
Hatakeyama/NNP
,/,
the/DT
president/NN
of/IN
the/DT
Japan/NNP
Management/NNP
Association/NNP
./.
``/``
Productivity/NNP
in/IN
Japanese/NNP
offices/NNS
is/VBZ
relatively/RB
low/JJ
./.
''/''
With/IN
Japanese/NNP
companies/NNS
in/IN
a/DT
wide/JJ
range/NN
of/IN
industries/NNS
--/:
from/IN
heavy/NN
industry/NN
to/TO
securities/NNS
firms/NNS
--/:
increasing/VBG
their/PRP$
market/NN
share/NN
world-wide/JJ
,/,
the/DT
prospect/NN
of/IN
an/DT
even/RB
more/RBR
efficient/JJ
Japanese/JJ
economic/JJ
army/NN
may/MD
rattle/VB
foreigners/NNS
./.
But/CC
it/PRP
also/RB
offers/VBZ
opportunities/NNS
;/:
Americans/NNS
are/VBP
well/RB
poised/VBN
to/TO
supply/VB
the/DT
weapons/NNS
./.
Japan/NNP
may/MD
be/VB
a/DT
tough/JJ
market/NN
for/IN
outsiders/NNS
to/TO
penetrate/VB
,/,
and/CC
the/DT
U.S./NNP
is/VBZ
hopelessly/RB
behind/IN
Japan/NNP
in/IN
certain/JJ
technologies/NNS
./.
But/CC
for/IN
now/RB
,/,
at/IN
least/JJS
,/,
Americans/NNS
are/VBP
far/RB
better/JJR
at/IN
making/VBG
PCs/NNS
and/CC
the/DT
software/NN
that/WDT
runs/VBZ
them/PRP
./.
After/IN
years/NNS
of/IN
talking/VBG
about/IN
selling/VBG
in/IN
Japan/NNP
,/,
more/JJR
and/CC
more/JJR
U.S./NNP
companies/NNS
are/VBP
seriously/RB
pouring/VBG
in/RP
./.
Apple/NNP
Computer/NNP
Inc./NNP
has/VBZ
doubled/VBN
its/PRP$
staff/NN
here/RB
over/IN
the/DT
past/JJ
year/NN
./.
Lotus/NNP
Development/NNP
Corp./NNP
has/VBZ
slashed/VBN
the/DT
lag/NN
between/IN
U.S./NNP
and/CC
Japan/NNP
product/NN
introductions/NNS
to/TO
six/CD
months/NNS
from/IN
three/CD
years/NNS
./.
Ungermann-Bass/NNP
Inc./NNP
has/VBZ
a/DT
bigger/JJR
share/NN
of/IN
the/DT
computer-network/NN
market/NN
in/IN
Japan/NNP
than/IN
at/IN
home/NN
./.
But/CC
the/DT
Japanese/NNS
have/VBP
to/TO
go/VB
a/DT
long/JJ
way/NN
to/TO
catch/VB
up/RP
./.
Typical/JJ
is/VBZ
one/CD
office/NN
of/IN
the/DT
Ministry/NNP
of/IN
International/NNP
Trade/NNP
and/CC
Industry/NNP
's/POS
Machinery/NNP
and/CC
Information/NNP
Industries/NNP
Bureau/NNP
--/:
the/DT
main/JJ
bureaucracy/NN
overseeing/VBG
the/DT
computer/NN
industry/NN
./.
``/``
Personal/NNP
Computer/NNP
''/''
yearbooks/NNS
are/VBP
lined/VBN
up/RP
on/IN
nearly/RB
every/DT
desk/NN
,/,
and/CC
dog-eared/JJ
copies/NNS
of/IN
Nikkei/NNP
Computer/NNP
crowd/VBP
magazine/NN
racks/NNS
./.
But/CC
amid/IN
the/DT
two/CD
dozen/NN
bureaucrats/NNS
and/CC
secretaries/NNS
sits/VBZ
only/RB
one/CD
real-life/JJ
PC/NN
./.
While/IN
American/JJ
PC/NN
sales/NNS
have/VBP
averaged/VBN
roughly/RB
25/CD
%/NN
annual/JJ
growth/NN
since/IN
1984/CD
and/CC
West/JJ
European/JJ
sales/NNS
a/DT
whopping/JJ
40/CD
%/NN
,/,
Japanese/JJ
sales/NNS
were/VBD
flat/JJ
for/IN
most/JJS
of/IN
that/DT
time/NN
./.
Japanese/NNP
office/NN
workers/NNS
use/VBP
PCs/NNS
at/IN
half/PDT
the/DT
rate/NN
of/IN
their/PRP$
European/JJ
counterparts/NNS
and/CC
one-third/JJ
that/IN
of/IN
the/DT
Americans/NNS
./.
Moreover/RB
,/,
Japanese/JJ
offices/NNS
tend/VBP
to/TO
use/VB
computers/NNS
less/RBR
efficiently/RB
than/IN
American/JJ
offices/NNS
do/VBP
./.
In/IN
the/DT
U.S./NNP
,/,
PCs/NNS
commonly/RB
perform/VBP
many/JJ
tasks/NNS
and/CC
plug/VBP
into/IN
a/DT
broad/JJ
network/NN
./.
In/IN
Japan/NNP
,/,
many/JJ
desktop/NN
terminals/NNS
are/VBP
limited/VBN
to/TO
one/CD
function/NN
and/CC
ca/MD
n't/RB
communicate/VB
with/IN
other/JJ
machines/NNS
./.
The/DT
market/NN
planning/NN
and/CC
sales/JJ
promotion/NN
office/NN
of/IN
Nomura/NNP
Securities/NNP
Co./NNP
,/,
for/IN
example/NN
,/,
has/VBZ
more/JJR
than/IN
30/CD
computers/NNS
for/IN
its/PRP$
60/CD
workers/NNS
,/,
a/DT
respectable/JJ
ratio/NN
./.
But/CC
the/DT
machines/NNS
are/VBP
n't/RB
on/IN
employees/NNS
'/POS
desks/NNS
;/:
they/PRP
ring/VBP
the/DT
perimeter/NN
of/IN
the/DT
large/JJ
office/NN
./.
Some/DT
machines/NNS
make/VBP
charts/NNS
for/IN
presentations/NNS
./.
Others/NNS
analyze/VBP
the/DT
data/NN
./.
To/TO
transfer/VB
information/NN
from/IN
one/CD
to/TO
the/DT
other/JJ
,/,
employees/NNS
make/VBP
printouts/NNS
and/CC
enter/VBP
the/DT
data/NN
manually/RB
./.
To/TO
transmit/VB
charts/NNS
to/TO
branch/NN
offices/NNS
,/,
they/PRP
use/VBP
a/DT
fax/NN
machine/NN
./.
Meanwhile/RB
,/,
a/DT
woman/NN
sitting/VBG
next/JJ
to/TO
a/DT
new/JJ
Fujitsu/NNP
terminal/NN
writes/VBZ
stock-market/JJ
information/NN
on/IN
a/DT
chart/NN
with/IN
a/DT
pencil/NN
and/CC
adds/VBZ
it/PRP
up/RP
with/IN
a/DT
hand/NN
calculator/NN
./.
In/IN
an/DT
efficient/JJ
setup/NN
,/,
the/DT
same/JJ
PC/NNP
could/MD
perform/VB
all/DT
those/DT
tasks/NNS
./.
In/IN
the/DT
U.S./NNP
,/,
more/JJR
than/IN
half/PDT
the/DT
PC/NN
software/NN
sold/VBN
is/VBZ
either/DT
for/IN
spreadsheets/NNS
or/CC
for/IN
database/NN
analysis/NN
,/,
according/VBG
to/TO
Lotus/NNP
./.
In/IN
Japan/NNP
,/,
those/DT
functions/NNS
account/VBP
for/IN
only/RB
about/RB
a/DT
third/JJ
of/IN
the/DT
software/NN
market/NN
./.
Machines/NNS
dedicated/VBN
solely/RB
to/TO
word/NN
processing/NN
,/,
which/WDT
have/VBP
all/DT
but/CC
disappeared/VBD
in/IN
the/DT
U.S./NNP
,/,
are/VBP
still/RB
more/RBR
common/JJ
in/IN
Japan/NNP
than/IN
PCs/NNS
./.
In/IN
the/DT
U.S./NNP
,/,
one-fifth/JJ
of/IN
the/DT
office/NN
PCs/NNS
are/VBP
hooked/VBN
up/RP
to/TO
some/DT
sort/NN
of/IN
network/NN
./.
In/IN
Japan/NNP
,/,
about/RB
1/CD
%/NN
are/VBP
linked/VBN
./.
``/``
Computers/NNS
here/RB
are/VBP
used/VBN
for/IN
data/NN
gathering/NN
,/,
''/''
says/VBZ
Roger/NNP
J./NNP
Boisvert/NNP
,/,
who/WP
manages/VBZ
the/DT
integrated-technologies/NNS
group/NN
in/IN
McKinsey/NNP
&/CC
Co./NNP
's/POS
Tokyo/NNP
office/NN
./.
Some/DT
Japanese/JJ
operations/NNS
,/,
such/JJ
as/IN
securities-trading/JJ
rooms/NNS
,/,
may/MD
be/VB
ahead/RB
of/IN
their/PRP$
American/JJ
counterparts/NNS
,/,
he/PRP
says/VBZ
,/,
but/CC
``/``
basically/RB
,/,
there/EX
's/POS
little/JJ
analysis/NN
done/VBN
on/IN
computers/NNS
in/IN
Japan/NNP
./.
''/''
Of/IN
course/NN
,/,
simply/RB
buying/VBG
computers/NNS
does/VBZ
n't/RB
always/RB
solve/VB
problems/NNS
,/,
and/CC
many/JJ
American/JJ
companies/NNS
have/VBP
erred/VBN
by/IN
purchasing/VBG
technology/NN
they/PRP
did/VBD
n't/RB
understand/VB
./.
But/CC
healthy/JJ
skepticism/NN
is/VBZ
only/RB
a/DT
small/JJ
reason/NN
for/IN
Japan/NNP
's/POS
PC/NNP
lag/NN
./.
Various/JJ
cultural/JJ
and/CC
economic/JJ
forces/NNS
have/VBP
suppressed/VBN
demand/NN
./.
Because/IN
the/DT
Japanese/JJ
``/``
alphabet/NN
''/''
is/VBZ
so/RB
huge/JJ
,/,
Japan/NNP
has/VBZ
no/DT
history/NN
of/IN
typewriter/NN
use/NN
,/,
and/CC
so/IN
``/``
keyboard/NN
allergy/NN
,/,
''/''
especially/RB
among/IN
older/JJR
workers/NNS
,/,
remains/VBZ
a/DT
common/JJ
affliction/NN
./.
``/``
I/PRP
have/VBP
no/DT
experience/NN
before/RB
with/IN
such/JJ
sophisticated/JJ
machinery/NN
,/,
''/''
says/VBZ
Matsuo/NNP
Toshimitsu/NNP
,/,
a/DT
66-year-old/JJ
executive/NN
vice/NN
president/NN
of/IN
Japan/NNP
Air/NNP
Lines/NNP
,/,
explaining/VBG
his/PRP$
reluctance/NN
before/IN
accepting/VBG
a/DT
terminal/NN
in/IN
his/PRP$
office/NN
this/DT
summer/NN
./.
While/IN
most/JJS
American/JJ
employees/NNS
have/VBP
their/PRP$
own/JJ
private/JJ
space/NN
,/,
Japanese/JJ
``/``
salarymen/NNS
''/''
usually/RB
share/VBP
large/JJ
,/,
common/JJ
tables/NNS
and/CC
rely/VBP
heavily/RB
on/IN
old-fashioned/JJ
personal/JJ
contact/NN
./.
Top/JJ
Japanese/JJ
executives/NNS
often/RB
make/VBP
decisions/NNS
based/VBN
on/IN
consensus/NN
and/CC
personal/JJ
relationships/NNS
rather/RB
than/IN
complex/JJ
financial/JJ
projections/NNS
and/CC
fancy/JJ
presentations/NNS
./.
And/CC
Japan/NNP
's/POS
management/NN
system/NN
makes/VBZ
it/PRP
hard/JJ
to/TO
impose/VB
a/DT
single/JJ
,/,
integrated/VBN
computer/NN
system/NN
corporatewide/JJ
./.
Besides/IN
,/,
a/DT
computer/NN
processing/VBG
the/DT
Japanese/JJ
language/NN
needs/VBZ
a/DT
huge/JJ
memory/NN
and/CC
much/JJ
processing/NN
capability/NN
,/,
while/IN
the/DT
screen/NN
and/CC
printer/NN
need/VBP
far/RB
better/JJR
definition/NN
to/TO
depict/VB
accurately/RB
the/DT
intricate/JJ
symbols/NNS
./.
Until/IN
recently/RB
,/,
much/JJ
of/IN
the/DT
necessary/JJ
technology/NN
has/VBZ
been/VBN
unavailable/JJ
or/CC
at/IN
least/JJS
unaffordable/JJ
./.
Some/DT
analysts/NNS
estimate/VBP
the/DT
average/JJ
PC/NN
costs/VBZ
about/RB
50/CD
%/NN
more/JJR
in/IN
Japan/NNP
than/IN
the/DT
U.S/NNP
./.
But/CC
the/DT
complex/JJ
language/NN
is/VBZ
n't/RB
the/DT
only/JJ
reason/NN
./.
For/IN
the/DT
past/JJ
decade/NN
,/,
NEC/NNP
Corp./NNP
has/VBZ
owned/VBN
more/JJR
than/IN
half/PDT
the/DT
Japanese/JJ
PC/NN
market/NN
and/CC
ruled/VBD
it/PRP
with/IN
near-monopoly/JJ
power/NN
./.
With/IN
little/JJ
competition/NN
,/,
the/DT
computer/NN
industry/NN
here/RB
is/VBZ
inefficient/JJ
./.
The/DT
U.S./NNP
market/NN
,/,
too/RB
,/,
is/VBZ
dominated/VBN
by/IN
a/DT
giant/NN
,/,
International/NNP
Business/NNP
Machines/NNP
Corp/NNP
./.
But/CC
early/RB
on/RB
,/,
IBM/NNP
offered/VBD
its/PRP$
basic/JJ
design/NN
to/TO
anybody/NN
wanting/VBG
to/TO
copy/VB
it/PRP
./.
Dozens/NNS
of/IN
small/JJ
companies/NNS
did/VBD
,/,
swiftly/RB
establishing/VBG
a/DT
standard/NN
operating/NN
system/NN
./.
That/DT
spurs/VBZ
competition/NN
and/CC
growth/NN
,/,
allows/VBZ
users/NNS
to/TO
change/VB
and/CC
mix/VB
brands/NNS
easily/RB
,/,
and/CC
increases/VBZ
software/NN
firms/NNS
'/POS
incentive/NN
to/TO
write/VB
packages/NNS
because/IN
they/PRP
can/MD
be/VB
sold/VBN
to/TO
users/NNS
of/IN
virtually/RB
any/DT
computer/NN
./.
If/IN
a/DT
record/NN
industry/NN
lacked/VBD
a/DT
common/JJ
standard/NN
,/,
Sony/NNP
CD/NN
owners/NNS
could/MD
listen/VB
to/TO
a/DT
Sony/NNP
version/NN
of/IN
Madonna/NNP
's/POS
``/``
Like/IN
a/DT
Prayer/NN
''/''
but/CC
not/RB
one/CD
made/VBD
for/IN
a/DT
Panasonic/NNP
player/NN
./.
That/DT
is/VBZ
the/DT
state/NN
of/IN
Japan/NNP
's/POS
computer/NN
industry/NN
./.
NEC/NNP
wo/MD
n't/RB
release/VB
its/PRP$
code/NN
,/,
and/CC
every/DT
one/CD
of/IN
the/DT
dozen/NN
or/CC
so/RB
makers/NNS
has/VBZ
its/PRP$
own/JJ
proprietary/NN
operating/NN
system/NN
--/:
all/DT
incompatible/JJ
with/IN
each/DT
other/JJ
./.
IBM/NNP
established/VBD
its/PRP$
standard/NN
to/TO
try/VB
to/TO
stop/VB
falling/VBG
behind/IN
upstart/NN
Apple/NNP
Computer/NNP
,/,
but/CC
NEC/NNP
was/VBD
ahead/RB
from/IN
the/DT
start/NN
and/CC
did/VBD
n't/RB
need/VB
to/TO
invite/VB
in/RB
competitive/JJ
allies/NNS
./.
Meanwhile/RB
,/,
the/DT
big/JJ
players/NNS
have/VBP
n't/RB
tried/VBN
to/TO
copy/VB
the/DT
NEC/NNP
standard/NN
./.
Corporate/JJ
pride/NN
as/RB
well/RB
as/IN
the/DT
close/JJ
ties/NNS
common/JJ
among/IN
Japanese/JJ
manufacturers/NNS
help/VBP
explain/VB
why/WRB
./.
Most/JJS
rivals/NNS
``/``
have/VBP
a/DT
working/NN
relationship/NN
with/IN
NEC/NNP
,/,
often/RB
through/IN
cross-licensing/NN
of/IN
technology/NN
,/,
''/''
the/DT
Japan/NNP
Personal/NNP
Computer/NNP
Software/NNP
Association/NNP
noted/VBD
recently/RB
./.
``/``
They/PRP
hesitate/VBP
to/TO
market/VB
NEC-compatible/JJ
machines/NNS
;/:
NEC/NNP
disapproves/VBZ
of/IN
such/JJ
machines/NNS
,/,
and/CC
marketing/VBG
one/CD
would/MD
jeopardize/VB
their/PRP$
relationship/NN
./.
''/''
The/DT
result/NN
,/,
according/VBG
to/TO
many/JJ
analysts/NNS
,/,
is/VBZ
higher/JJR
prices/NNS
and/CC
less/JJR
innovation/NN
./.
While/IN
tens/NNS
of/IN
thousands/NNS
of/IN
software/NN
packages/NNS
using/VBG
the/DT
IBM/NNP
standard/NN
are/VBP
available/JJ
in/IN
the/DT
U.S./NNP
,/,
they/PRP
say/VBP
only/RB
about/RB
8,000/CD
are/VBP
written/VBN
for/IN
NEC/NNP
./.
A/DT
year/NN
ago/RB
,/,
Japan/NNP
's/POS
Fair/NNP
Trade/NNP
Commission/NNP
warned/VBD
NEC/NNP
about/IN
possible/JJ
violations/NNS
of/IN
anti-monopoly/JJ
laws/NNS
for/IN
discouraging/VBG
retailers/NNS
from/IN
discounting/VBG
./.
In/IN
Japan/NNP
,/,
``/``
software/NN
is/VBZ
four/CD
to/TO
five/CD
years/NNS
behind/IN
the/DT
U.S./NNP
because/IN
hardware/NN
is/VBZ
four/CD
to/TO
five/CD
years/NNS
behind/IN
,/,
because/IN
NEC/NNP
is/VBZ
enjoying/VBG
a/DT
monopoly/NN
,/,
''/''
complains/VBZ
Kazuhiko/NNP
Nishi/NNP
,/,
the/DT
president/NN
of/IN
Ascii/NNP
Corp./NNP
,/,
one/CD
of/IN
Japan/NNP
's/POS
leading/JJ
PC-magazine/JJ
publishing/NN
and/CC
software/NN
companies/NNS
./.
``/``
There/EX
are/VBP
no/DT
price/NN
wars/NNS
,/,
no/DT
competition/NN
./.
''/''
An/DT
NEC/NNP
spokeswoman/NN
responds/VBZ
that/IN
prices/NNS
are/VBP
higher/JJR
in/IN
Japan/NNP
because/IN
customers/NNS
put/VBP
a/DT
greater/JJR
emphasis/NN
on/IN
quality/NN
and/CC
service/NN
than/IN
they/PRP
do/VBP
in/IN
the/DT
U.S/NNP
./.
She/PRP
adds/VBZ
that/IN
some/DT
technological/JJ
advances/NNS
trail/VBP
those/DT
in/IN
the/DT
U.S./NNP
because/IN
the/DT
Japanese/NNS
still/RB
import/VBP
basic/JJ
operating/VBG
systems/NNS
from/IN
American/JJ
companies/NNS
./.
But/CC
the/DT
market/NN
is/VBZ
changing/VBG
./.
The/DT
government/NN
is/VBZ
funding/VBG
several/JJ
projects/NNS
to/TO
push/VB
PC/NN
use/NN
./.
Over/IN
the/DT
next/JJ
three/CD
years/NNS
,/,
public/JJ
schools/NNS
will/MD
get/VB
1.5/CD
million/CD
PCs/NNS
,/,
a/DT
15-fold/JJ
increase/NN
from/IN
current/JJ
levels/NNS
./.
In/IN
the/DT
private/JJ
sector/NN
,/,
practically/RB
every/DT
major/JJ
company/NN
is/VBZ
setting/VBG
explicit/JJ
goals/NNS
to/TO
increase/VB
employees/NNS
'/POS
exposure/NN
to/TO
computers/NNS
./.
Toyota/NNP
Motor/NNP
Corp./NNP
's/POS
sales/NNS
offices/NNS
in/IN
Japan/NNP
have/VBP
one-tenth/JJ
the/DT
computers/NNS
per/IN
employee/NN
that/IN
its/PRP$
own/JJ
U.S./NNP
offices/NNS
do/VBP
;/:
over/IN
the/DT
next/JJ
five/CD
years/NNS
,/,
it/PRP
is/VBZ
aiming/VBG
for/IN
rough/JJ
parity/NN
./.
Within/IN
a/DT
year/NN
,/,
Kao/NNP
Corp./NNP
,/,
a/DT
major/JJ
cosmetics/NNS
company/NN
,/,
plans/VBZ
to/TO
eliminate/VB
1,000/CD
clerical/JJ
jobs/NNS
by/IN
putting/VBG
on/RP
a/DT
central/JJ
computer/NN
network/NN
some/DT
work/NN
,/,
such/JJ
as/IN
credit/NN
reports/NNS
,/,
currently/RB
performed/VBN
in/IN
22/CD
separate/JJ
offices/NNS
./.
By/IN
increasing/VBG
the/DT
number/NN
of/IN
PCs/NNS
it/PRP
uses/VBZ
from/IN
66/CD
to/TO
1,000/CD
,/,
Omron/NNP
Tateishi/NNP
Electronics/NNP
Co./NNP
,/,
of/IN
Kyoto/NNP
,/,
hopes/VBZ
not/RB
only/JJ
to/TO
make/VB
certain/JJ
tasks/NNS
easier/RBR
but/CC
also/RB
to/TO
transform/VB
the/DT
way/NN
the/DT
company/NN
is/VBZ
run/VBN
./.
``/``
Managers/NNS
have/VBP
long/RB
been/VBN
those/DT
who/WP
supervise/VBP
their/PRP$
subordinates/NNS
so/IN
orders/NNS
would/MD
be/VB
properly/RB
acted/VBN
on/IN
,/,
''/''
a/DT
spokesman/NN
says/VBZ
./.
``/``
But/CC
new/JJ
managers/NNS
will/MD
have/VBP
to/TO
be/VB
creators/NNS
and/CC
innovators/NNS
.../:
and/CC
for/IN
that/DT
purpose/NN
it/PRP
is/VBZ
necessary/JJ
to/TO
create/VB
an/DT
environment/NN
where/WRB
information/NN
from/IN
both/DT
inside/IN
and/CC
outside/IN
the/DT
company/NN
can/MD
be/VB
reached/VBN
easily/RB
,/,
and/CC
also/RB
shared/VBN
./.
''/''
Meanwhile/RB
,/,
more/JJR
computer/NN
makers/NNS
now/RB
are/VBP
competing/VBG
for/IN
the/DT
new/JJ
business/NN
./.
Seiko/NNP
Epson/NNP
Corp./NNP
,/,
a/DT
newcomer/NN
to/TO
the/DT
industry/NN
,/,
fought/VBN
off/RP
a/DT
legal/JJ
challenge/NN
and/CC
started/VBD
selling/VBG
NEC/NNP
clones/NNS
last/JJ
year/NN
./.
It/PRP
has/VBZ
won/VBN
about/RB
15/CD
%/NN
of/IN
the/DT
retail/JJ
PC/NN
market/NN
./.
Sony/NNP
Corp./NNP
,/,
which/WDT
temporarily/RB
dropped/VBD
out/IN
of/IN
the/DT
PC/NN
business/NN
three/CD
years/NNS
ago/RB
,/,
started/VBD
selling/VBG
its/PRP$
work/NN
station/NN
in/IN
1987/CD
and/CC
quickly/RB
became/VBD
the/DT
leading/VBG
Japanese/JJ
company/NN
in/IN
that/DT
market/NN
./.
In/IN
a/DT
country/NN
where/WRB
elbow/NN
room/NN
is/VBZ
scarce/JJ
,/,
laptop/JJ
machines/NNS
will/MD
take/VB
a/DT
large/JJ
portion/NN
of/IN
the/DT
industry/NN
's/POS
future/JJ
growth/NN
./.
Toshiba/NNP
Corp./NNP
busted/VBD
open/JJ
that/DT
sector/NN
this/DT
summer/NN
with/IN
a/DT
notebook-sized/JJ
machine/NN
that/WDT
retails/VBZ
for/IN
less/JJR
than/IN
200,000/CD
yen/NN
$/$
1,500/CD
one/CD
of/IN
the/DT
smallest/JJS
,/,
cheapest/JJS
PCs/NNS
available/JJ
in/IN
the/DT
country/NN
./.
Fujitsu/NNP
Ltd./NNP
is/VBZ
lavishing/VBG
the/DT
most/RBS
expensive/JJ
promotion/NN
campaign/NN
in/IN
its/PRP$
history/NN
--/:
including/VBG
a/DT
100,000-guest/JJ
bash/NN
at/IN
Tokyo/NNP
Dome/NNP
--/:
for/IN
its/PRP$
sophisticated/JJ
sound\/graphics/JJ
FM/JJ
Towns/NNP
machine/NN
,/,
which/WDT
it/PRP
advertises/VBZ
for/IN
everything/NN
from/IN
balancing/VBG
the/DT
family/NN
checkbook/NN
to/TO
practicing/VBG
karaoke/NN
,/,
bar/NN
singing/NN
./.
Many/JJ
of/IN
the/DT
companies/NNS
are/VBP
even/RB
dropping/VBG
their/PRP$
traditional/JJ
independence/NN
and/CC
trying/VBG
to/TO
band/VB
together/RB
to/TO
create/VB
some/DT
sort/NN
of/IN
standard/NN
./.
Two/CD
years/NNS
ago/RB
,/,
most/JJS
of/IN
the/DT
smaller/JJR
makers/NNS
joined/VBD
under/IN
the/DT
Microsoft/NNP
Corp./NNP
umbrella/NN
to/TO
adopt/VB
a/DT
version/NN
of/IN
the/DT
American/JJ
IBM/NNP
AT/NNP
standard/NN
./.
That/DT
has/VBZ
n't/RB
generated/VBD
much/JJ
sales/NNS
,/,
but/CC
this/DT
summer/NN
Microsoft/NNP
rallied/VBD
all/DT
the/DT
major/JJ
NEC/NNP
competitors/NNS
to/TO
make/VB
their/PRP$
new/JJ
machines/NNS
compatible/JJ
with/IN
the/DT
IBM/NNP
OS\/2/NNP
standard/NN
./.
A/DT
healthy/JJ
,/,
coherent/JJ
Japanese/JJ
market/NN
could/MD
also/RB
make/VB
it/PRP
far/RB
easier/RBR
for/IN
Japanese/JJ
companies/NNS
to/TO
sell/VB
overseas/RB
,/,
where/WRB
their/PRP$
share/NN
is/VBZ
still/RB
minimal/JJ
./.
But/CC
it/PRP
could/MD
also/RB
help/VB
American/JJ
companies/NNS
,/,
which/WDT
also/RB
are/VBP
starting/VBG
to/TO
try/VB
to/TO
open/VB
the/DT
market/NN
./.
As/IN
with/IN
many/JJ
other/JJ
goods/NNS
,/,
the/DT
American/JJ
share/NN
of/IN
Japan/NNP
's/POS
PC/NN
market/NN
is/VBZ
far/RB
below/IN
that/DT
in/IN
the/DT
rest/NN
of/IN
the/DT
world/NN
./.
U.S./NNP
makers/NNS
have/VBP
under/IN
10/CD
%/NN
share/NN
,/,
compared/VBN
with/IN
half/PDT
the/DT
market/NN
in/IN
Europe/NNP
and/CC
80/CD
%/NN
at/IN
home/NN
./.
Though/IN
no/DT
formal/JJ
trade/NN
barriers/NNS
exist/VBP
,/,
the/DT
Japanese/JJ
computer/NN
industry/NN
is/VBZ
difficult/JJ
for/IN
outsiders/NNS
to/TO
enter/VB
./.
``/``
If/IN
it/PRP
were/VBD
an/DT
open/JJ
market/NN
,/,
we/PRP
would/MD
have/VB
been/VBN
in/RB
in/IN
1983/CD
or/CC
1984/CD
,/,
''/''
says/VBZ
Eckhard/NNP
Pfeiffer/NNP
,/,
who/WP
heads/VBZ
Compaq/NNP
Computer/NNP
Corp./NNP
's/POS
European/JJ
and/CC
international/JJ
operations/NNS
./.
His/PRP$
company/NN
,/,
without/IN
any/DT
major/JJ
effort/NN
,/,
sells/VBZ
more/JJR
machines/NNS
in/IN
China/NNP
than/IN
in/IN
Japan/NNP
./.
Although/IN
it/PRP
has/VBZ
opened/VBN
a/DT
New/NNP
Zealand/NNP
subsidiary/NN
,/,
it/PRP
is/VBZ
still/RB
only/RB
``/``
studying/VBG
''/''
Japan/NNP
,/,
the/DT
only/JJ
nation/NN
that/DT
has/VBZ
n't/RB
adopted/VBN
IBM-oriented/JJ
specifications/NNS
./.
And/CC
because/IN
general/JJ
retail/JJ
centers/NNS
such/JJ
as/IN
ComputerLand/NNP
have/VBP
little/JJ
presence/NN
in/IN
Japan/NNP
,/,
sales/NNS
remain/VBP
in/IN
the/DT
iron/NN
grip/NN
of/IN
established/VBN
computer/NN
makers/NNS
./.
But/CC
the/DT
Americans/NNS
are/VBP
also/RB
to/TO
blame/VB
./.
They/PRP
long/RB
made/VBD
little/JJ
effort/NN
here/RB
./.
IBM/NNP
,/,
though/IN
long/RB
a/DT
leader/NN
in/IN
the/DT
Japanese/JJ
mainframe/NN
business/NN
,/,
did/VBD
n't/RB
introduce/VB
its/PRP$
first/JJ
PC/NN
in/IN
Japan/NNP
until/IN
five/CD
years/NNS
after/IN
NEC/NNP
did/VBD
,/,
and/CC
that/DT
was/VBD
n't/RB
compatible/JJ
even/RB
with/IN
the/DT
U.S./NNP
IBM/NNP
standard/NN
./.
Apple/NNP
did/VBD
n't/RB
introduce/VB
a/DT
kanji/FW
machine/NN
--/:
one/NN
that/WDT
handles/VBZ
the/DT
Chinese/JJ
characters/NNS
of/IN
written/VBN
Japanese/NNP
--/:
until/IN
three/CD
years/NNS
after/IN
entering/VBG
the/DT
market/NN
./.
Critics/NNS
also/RB
say/VBP
American/JJ
companies/NNS
charge/VBP
too/RB
much/JJ
./.
Japan/NNP
's/POS
FTC/NNP
says/VBZ
it/PRP
is/VBZ
investigating/VBG
Apple/NNP
for/IN
allegedly/RB
discouraging/VBG
retailers/NNS
from/IN
discounting/VBG
./.
But/CC
the/DT
U.S./NNP
companies/NNS
are/VBP
redoubling/VBG
their/PRP$
efforts/NNS
./.
Apple/NNP
recently/RB
hired/VBD
its/PRP$
first/JJ
Japanese/JJ
president/NN
,/,
luring/VBG
away/RB
an/DT
official/NN
of/IN
Toshiba/NNP
's/POS
European/JJ
operations/NNS
,/,
as/RB
well/RB
as/IN
a/DT
whole/JJ
Japanese/JJ
top-management/JJ
team/NN
./.
Earlier/RBR
this/DT
year/NN
,/,
it/PRP
introduced/VBD
a/DT
much/RB
more/RBR
powerful/JJ
kanji/FW
operating/NN
system/NN
and/CC
a/DT
kanji/FW
laser/NN
printer/NN
./.
IBM/NNP
just/RB
last/JJ
year/NN
started/VBD
selling/VBG
its/PRP$
first/JJ
machine/NN
that/WDT
could/MD
run/VB
in/IN
both/DT
Japanese/NNP
and/CC
English/NNP
and/CC
that/WDT
substantially/RB
enhances/VBZ
compatibility/NN
with/IN
its/PRP$
American/JJ
products/NNS
./.
``/``
It/PRP
may/MD
take/VB
five/CD
years/NNS
to/TO
break/VB
even/JJ
in/IN
Japan/NNP
,/,
''/''
says/VBZ
John/NNP
A./NNP
Siniscal/NNP
,/,
who/WP
runs/VBZ
the/DT
Asia-Pacific/JJ
office/NN
for/IN
McCormack/NNP
&/CC
Dodge/NNP
,/,
a/DT
U.S./NNP
software/NN
company/NN
./.
``/``
But/CC
it/PRP
's/VBZ
an/DT
enormous/JJ
business/NN
opportunity/NN
./.
''/''
From/IN
a/DT
reading/NN
of/IN
the/DT
somewhat/RB
scant/JJ
English-language/JJ
medical/JJ
literature/NN
on/IN
RU-486/NNP
,/,
the/DT
French/JJ
abortion/NN
pill/NN
emerges/VBZ
as/IN
one/CD
of/IN
the/DT
creepiest/JJS
concoctions/NNS
around/RP
./.
This/DT
is/VBZ
not/RB
only/RB
because/IN
it/PRP
kills/VBZ
the/DT
unborn/NN
,/,
a/DT
job/NN
at/IN
which/WDT
it/PRP
actually/RB
is/VBZ
not/RB
outstandingly/RB
efficient/JJ
,/,
zapping/VBG
only/RB
50/CD
%/NN
to/TO
85/CD
%/NN
of/IN
them/PRP
depending/VBG
on/IN
which/WDT
study/NN
you/PRP
read/VBP
(/(
prostaglandin/NN
,/,
taken/VBN
in/IN
conjunction/NN
with/IN
the/DT
pill/NN
,/,
boosts/VBZ
the/DT
rate/NN
to/TO
95/CD
%/NN
By/IN
contrast/NN
,/,
surgical/JJ
abortion/NN
is/VBZ
99/CD
%/NN
effective/NN
./.
Abortion/NN
via/IN
the/DT
pill/NN
is/VBZ
far/RB
more/JJR
of/IN
an/DT
ordeal/NN
than/IN
conventional/JJ
surgical/JJ
abortion/NN
./.
It/PRP
is/VBZ
time-consuming/JJ
(/(
the/DT
abortion/NN
part/NN
alone/RB
lasts/VBZ
three/CD
days/NNS
,/,
and/CC
the/DT
clinical/JJ
part/NN
comprises/VBZ
a/DT
week/NN
's/POS
worth/NN
of/IN
visits/NNS
bloody/JJ
one/CD
woman/NN
in/IN
a/DT
Swedish/JJ
trial/NN
required/VBD
a/DT
transfusion/NN
,/,
although/IN
for/IN
most/JJS
it/PRP
resembles/VBZ
a/DT
menstrual/JJ
period/NN
,/,
with/IN
bleeding/VBG
lasting/VBG
an/DT
average/NN
of/IN
10/CD
days/NNS
painful/JJ
many/JJ
women/NNS
require/VBP
analgesic/JJ
shots/NNS
to/TO
ease/VB
them/PRP
through/RP
)/)
./.
Nausea/NN
and/CC
vomiting/NN
are/VBP
other/JJ
common/JJ
side/NN
effects/NNS
./.
Timing/NN
is/VBZ
of/IN
the/DT
essence/NN
with/IN
RU-486/NNP
./.
It/PRP
is/VBZ
most/RBS
effective/JJ
taken/VBN
about/RB
a/DT
week/NN
after/RB
a/DT
woman/NN
misses/VBZ
her/PRP
menstrual/JJ
period/NN
up/IN
through/IN
the/DT
seventh/JJ
week/NN
of/IN
pregnancy/NN
,/,
when/WRB
it/PRP
is/VBZ
markedly/RB
less/RBR
effective/JJ
./.
That/DT
is/VBZ
typically/RB
about/RB
a/DT
three-week/JJ
window/NN
./.
So/IN
far/RB
,/,
all/DT
the/DT
studies/NNS
have/VBP
concluded/VBN
that/IN
RU-486/NNP
is/VBZ
``/``
safe/JJ
./.
''/''
But/CC
``/``
safe/JJ
,/,
''/''
in/IN
the/DT
definition/NN
of/IN
Marie/NNP
Bass/NNP
of/IN
the/DT
Reproductive/NNP
Health/NNP
Technologies/NNP
Project/NNP
,/,
means/VBZ
``/``
there/EX
's/VBZ
been/VBN
no/DT
evidence/NN
so/RB
far/RB
of/IN
mortality/NN
./.
''/''
No/DT
one/PRP
has/VBZ
researched/VBN
the/DT
long-term/JJ
effects/NNS
of/IN
RU-486/NNP
on/IN
a/DT
woman/NN
's/POS
health/NN
or/CC
fertility/NN
./.
The/DT
drug/NN
seems/VBZ
to/TO
suppress/VB
ovulation/NN
for/IN
three/CD
to/TO
seven/CD
months/NNS
after/IN
it/PRP
is/VBZ
taken/VBN
./.
Some/DT
women/NNS
clearly/RB
have/VBP
no/DT
trouble/NN
eventually/RB
conceiving/VBG
again/RB
:/:
The/DT
studies/NNS
have/VBP
reported/VBN
repeaters/NNS
in/IN
their/PRP$
programs/NNS
./.
But/CC
there/EX
are/VBP
no/DT
scientific/JJ
data/NN
on/IN
this/DT
question/NN
./.
Rather/RB
ominously/RB
,/,
rabbit/NN
studies/NNS
reveal/VBP
that/IN
RU-486/NNP
can/MD
cause/VB
birth/NN
defects/NNS
,/,
Lancet/NNP
,/,
the/DT
British/JJ
medical/JJ
journal/NN
,/,
reported/VBD
in/IN
1987/CD
./.
However/RB
,/,
Dr./NNP
Etienne-Emile/NNP
Baulieu/NNP
,/,
the/DT
French/JJ
physician/NN
who/WP
invented/VBD
RU-486/NNP
,/,
wrote/VBD
in/IN
a/DT
Science/NNP
magazine/NN
article/NN
last/JJ
month/NN
that/IN
the/DT
rabbit-test/JJ
results/NNS
could/MD
not/RB
be/VB
duplicated/VBN
in/IN
rats/NNS
and/CC
monkeys/NNS
./.
The/DT
drug/NN
has/VBZ
a/DT
three-dimensional/JJ
structure/NN
similar/JJ
to/TO
that/DT
of/IN
DES/NNP
,/,
the/DT
anti-miscarriage/JJ
drug/NN
that/WDT
has/VBZ
been/VBN
linked/VBN
to/TO
cervical/JJ
and/CC
vaginal/JJ
cancer/NN
in/IN
some/DT
of/IN
the/DT
daughters/NNS
of/IN
the/DT
women/NNS
who/WP
took/VBD
it/PRP
./.
All/DT
the/DT
published/VBN
studies/NNS
recommend/VBP
that/IN
women/NNS
on/IN
whom/WP
the/DT
drug/NN
proves/VBZ
ineffective/JJ
not/RB
carry/VB
the/DT
pregnancy/NN
to/TO
term/VB
but/CC
undergo/VBP
a/DT
surgical/JJ
abortion/NN
./.
A/DT
risk/NN
of/IN
birth/NN
defects/NNS
,/,
a/DT
sure/JJ
source/NN
of/IN
lawsuits/NNS
,/,
is/VBZ
one/CD
reason/NN
the/DT
U.S./NNP
pharmaceutical/JJ
industry/NN
is/VBZ
steering/VBG
clear/JJ
of/IN
RU-486/NNP
./.
One/NN
might/MD
well/RB
ask/VB
:/:
Why/WRB
bother/VBP
with/IN
this/DT
drug/NN
at/IN
all/DT
?/.
Some/DT
abortion/NN
advocates/NNS
have/VBP
been/VBN
asking/VBG
themselves/PRP
this/DT
very/JJ
question/NN
./.
RU-486/NNP
``/``
probably/RB
represents/VBZ
a/DT
technical/JJ
advance/NN
in/IN
an/DT
area/NN
where/WRB
none/NN
is/VBZ
needed/VBN
,/,
or/CC
at/IN
least/JJS
not/RB
very/RB
much/JJ
,/,
''/''
said/VBD
Phillip/NNP
Stubblefield/NNP
,/,
president/NN
of/IN
the/DT
National/NNP
Abortion/NNP
Federation/NNP
,/,
at/IN
a/DT
reproductive/JJ
health/NN
conference/NN
in/IN
1986/CD
./.
Many/JJ
physicians/NNS
have/VBP
expressed/VBN
concern/NN
over/IN
the/DT
heavy/JJ
bleeding/NN
,/,
which/WDT
occurs/VBZ
even/RB
if/IN
the/DT
drug/NN
fails/VBZ
to/TO
induce/VB
an/DT
abortion/NN
./.
It/PRP
typically/RB
takes/VBZ
from/IN
eight/CD
to/TO
10/CD
years/NNS
to/TO
obtain/VB
the/DT
Food/NNP
and/CC
Drug/NNP
Administration/NNP
's/POS
approval/NN
for/IN
a/DT
new/JJ
drug/NN
,/,
and/CC
the/DT
cost/NN
of/IN
testing/VBG
and/CC
marketing/VBG
a/DT
new/JJ
drug/NN
can/MD
range/VB
from/IN
$/$
30/CD
million/CD
to/TO
$/$
70/CD
million/CD
./.
The/DT
Health/NNP
and/CC
Human/NNP
Services/NNP
Department/NNP
currently/RB
forbids/VBZ
the/DT
National/NNP
Institutes/NNP
of/IN
Health/NNP
from/IN
funding/VBG
abortion/NN
research/NN
as/IN
part/NN
of/IN
its/PRP$
$/$
8/CD
million/CD
contraceptive/NN
program/NN
./.
But/CC
the/DT
Population/NNP
Council/NNP
,/,
a/DT
37-year-old/JJ
,/,
$/$
20/CD
million/CD
nonprofit/JJ
organization/NN
that/WDT
has/VBZ
the/DT
backing/NN
of/IN
the/DT
Rockefeller/NNP
and/CC
Mellon/NNP
foundations/NNS
and/CC
currently/RB
subsidizes/VBZ
most/JJS
U.S./NNP
research/NN
on/IN
contraceptives/NNS
,/,
has/VBZ
recently/RB
been/VBN
paying/VBG
for/IN
U.S./NNP
studies/NNS
of/IN
RU-486/NNP
on/IN
a/DT
license/NN
from/IN
its/PRP$
French/JJ
developer/NN
,/,
Roussel-Uclaf/NNP
,/,
a/DT
joint/JJ
subsidiary/NN
of/IN
the/DT
German/JJ
pharmaceutical/JJ
company/NN
Hoechst/NNP
and/CC
the/DT
French/JJ
government/NN
./.
In/IN
the/DT
year/NN
since/IN
the/DT
pill/NN
went/VBD
on/IN
the/DT
French/JJ
market/NN
,/,
the/DT
National/NNP
Organization/NNP
for/IN
Women/NNP
and/CC
its/PRP$
offshoot/NN
,/,
former/JJ
NOW/NNP
President/NNP
Eleanor/NNP
Smeal/NNP
's/POS
Fund/NNP
for/IN
a/DT
Feminist/NNP
Majority/NNP
,/,
have/VBP
been/VBN
trying/VBG
to/TO
browbeat/VB
the/DT
U.S./NNP
pharmaceutical/JJ
industry/NN
into/IN
getting/VBG
involved/VBN
./.
Its/PRP$
scare-tactic/NN
prediction/NN
:/:
the/DT
pill/NN
``/``
will/MD
be/VB
available/JJ
in/IN
the/DT
U.S./NNP
,/,
either/DT
legally/RB
or/CC
illegally/RB
,/,
in/IN
no/DT
more/JJR
than/IN
2-5/CD
years/NNS
./.
''/''
)/)
Following/VBG
the/DT
feminist/JJ
and/CC
population-control/JJ
lead/NN
has/VBZ
been/VBN
a/DT
generally/RB
bovine/JJ
press/NN
./.
A/DT
June/NNP
1988/CD
article/NN
in/IN
Mother/NNP
Jones/NNP
magazine/NN
is/VBZ
typical/JJ
of/IN
the/DT
general/JJ
level/NN
of/IN
media/NNS
ignorance/NN
./.
``/``
For/IN
a/DT
woman/NN
whose/WP$
period/NN
is/VBZ
late/JJ
,/,
using/VBG
RU-486/NNP
means/VBZ
no/DT
waiting/VBG
,/,
no/DT
walking/VBG
past/RB
picket/NN
lines/NNS
at/IN
abortion/NN
clinics/NNS
,/,
and/CC
no/DT
feet/NNS
up/RB
in/IN
stirrups/NNS
for/IN
surgery/NN
,/,
''/''
burbles/VBZ
health/NN
writer/NN
Laura/NNP
Fraser/NNP
./.
``/``
It/PRP
also/RB
means/VBZ
she/PRP
will/MD
never/RB
have/VB
to/TO
know/VB
whether/IN
she/PRP
had/VBD
actually/RB
been/VBN
pregnant/JJ
./.
''/''
Wrong/JJ
on/IN
all/DT
counts/NNS
,/,
Miss/NNP
Fraser/NNP
./.
RU-486/NNP
is/VBZ
being/VBG
administered/VBN
in/IN
France/NNP
only/RB
under/IN
strict/JJ
supervision/NN
in/IN
the/DT
presence/NN
of/IN
a/DT
doctor/NN
./.
Roussel/NNP
reportedly/RB
has/VBZ
every/DT
pill/NN
marked/VBN
and/CC
accounted/VBN
for/IN
to/TO
make/VB
sure/JJ
none/NN
slips/VBZ
into/IN
the/DT
black/JJ
market/NN
./.
a/DT
woman/NN
who/WP
used/VBD
RU-486/NNP
to/TO
have/VB
an/DT
abortion/NN
would/MD
have/VB
to/TO
make/VB
three/CD
trips/NNS
to/TO
the/DT
clinic/NN
past/IN
those/DT
picket/NN
lines/NNS
;/:
an/DT
initial/JJ
visit/NN
for/IN
medical/JJ
screening/NN
anemics/NNS
and/CC
those/DT
with/IN
previous/JJ
pregnancy/NN
problems/NNS
are/VBP
eliminated/VBN
)/)
and/CC
to/TO
take/VB
the/DT
pill/NN
,/,
a/DT
second/JJ
trip/NN
48/CD
hours/NNS
later/RBR
for/IN
the/DT
prostaglandin/NN
,/,
administered/VBN
either/CC
via/IN
injection/NN
or/CC
vaginal/JJ
suppository/NN
,/,
and/CC
a/DT
third/JJ
trip/NN
a/DT
week/NN
later/RBR
to/TO
make/VB
sure/JJ
she/PRP
has/VBZ
completely/RB
aborted/VBN
./.
Furthermore/RB
,/,
because/IN
timing/NN
is/VBZ
so/RB
critical/JJ
with/IN
RU-486/NNP
,/,
she/PRP
will/MD
learn/VB
,/,
via/IN
a/DT
pelvic/JJ
examination/NN
and/CC
ultrasound/NN
,/,
not/RB
only/RB
that/IN
she/PRP
is/VBZ
pregnant/JJ
,/,
but/CC
just/RB
how/WRB
pregnant/JJ
she/PRP
is/VBZ
./.
No/DT
doctor/NN
who/WP
fears/VBZ
malpractice/NN
liability/NN
would/MD
likely/RB
expose/VB
a/DT
non-pregnant/JJ
patient/NN
to/TO
the/DT
risk/NN
of/IN
hemorrhaging/VBG
./.
Many/JJ
women/NNS
may/MD
even/RB
see/VB
the/DT
dead/JJ
embryo/NN
they/PRP
have/VBP
expelled/VBN
,/,
a/DT
sight/NN
the/DT
surgical-abortion/JJ
industry/NN
typically/RB
spares/VBZ
them/PRP
./.
At/IN
seven/CD
weeks/NNS
,/,
an/DT
embryo/NN
is/VBZ
about/RBR
three-fourths/JJ
of/IN
an/DT
inch/NN
long/RB
and/CC
recognizably/RB
human/JJ
./.
At/IN
the/DT
behest/NN
of/IN
pro-choice/JJ
members/NNS
of/IN
Congress/NNP
,/,
a/DT
four-year/JJ
reauthorization/NN
bill/NN
for/IN
Title/NNP
X/NNP
federal/JJ
family-planning/JJ
assistance/NN
now/RB
contains/VBZ
a/DT
$/$
10/CD
million/CD
grant/NN
for/IN
``/``
development/NN
,/,
evaluation/NN
and/CC
bringing/NN
to/TO
the/DT
marketplace/NN
of/IN
new/JJ
improved/VBN
contraceptive/JJ
devices/NNS
,/,
drugs/NNS
and/CC
methods/NNS
./.
''/''
If/IN
this/DT
passes/VBZ
--/:
a/DT
Senate/NNP
version/NN
has/VBZ
already/RB
been/VBN
cleared/VBN
for/IN
a/DT
floor/NN
vote/NN
that/WDT
is/VBZ
likely/RB
early/JJ
next/JJ
year/NN
--/:
it/PRP
would/MD
put/VB
the/DT
federal/JJ
government/NN
into/IN
the/DT
contraceptive/JJ
marketing/NN
business/NN
for/IN
the/DT
first/JJ
time/NN
./.
It/PRP
also/RB
could/MD
put/VB
the/DT
government/NN
into/IN
the/DT
RU-486/NNP
business/NN
,/,
which/WDT
would/MD
please/VB
feminists/NNS
dismayed/VBN
at/IN
what/WP
they/PRP
view/VBP
as/IN
pusillanimity/NN
in/IN
the/DT
private-sector/JJ
drug/NN
industry/NN
./.
We/PRP
do/VBP
not/RB
know/VB
whether/IN
RU-486/NNP
will/MD
be/VB
as/RB
disastrous/JJ
as/IN
some/DT
of/IN
the/DT
earlier/JJR
fertility-control/JJ
methods/NNS
released/VBN
to/TO
unblinking/JJ
,/,
uncritical/JJ
cheers/NNS
from/IN
educated/VBN
people/NNS
who/WP
should/MD
have/VB
known/VBN
better/RBR
./.
the/DT
Dalkon/NNP
Shield/NNP
and/CC
the/DT
early/JJ
birth-control/NN
pills/NNS
?/.
We/PRP
will/MD
not/RB
know/VB
until/IN
a/DT
first/JJ
generation/NN
of/IN
female/JJ
guinea/NN
pigs/NNS
--/:
all/DT
of/IN
whom/WP
will/MD
be/VB
more/RBR
than/IN
happy/JJ
to/TO
volunteer/VB
for/IN
the/DT
job/NN
--/:
has/VBZ
put/VBN
the/DT
abortion/NN
pill/NN
through/IN
the/DT
clinical/JJ
test/NN
of/IN
time/NN
./.
Mrs./NNP
Allen/NNP
is/VBZ
a/DT
senior/JJ
editor/NN
of/IN
Insight/NNP
magazine/NN
./.
This/DT
article/NN
is/VBZ
adapted/VBN
from/IN
one/CD
in/IN
the/DT
October/NNP
American/NNP
Spectator/NNP
./.
On/IN
June/NNP
30/CD
,/,
a/DT
major/JJ
part/NN
of/IN
our/PRP$
trade/NN
deficit/NN
went/VBD
poof/NN
!/.
No/DT
figure/NN
juggling/NN
;/:
no/DT
witchcraft/NN
;/:
just/RB
vastly/RB
improved/VBN
recording/NN
of/IN
some/DT
of/IN
our/PRP$
exports/NNS
./.
The/DT
result/NN
?/.
The/DT
Commerce/NNP
Department/NNP
found/VBD
that/IN
U.S./NNP
exports/NNS
in/IN
1988/CD
,/,
net/NN
of/IN
imports/NNS
,/,
were/VBD
understated/VBN
by/IN
$/$
20.9/CD
billion/CD
a/DT
year/NN
and/CC
understated/VBD
at/IN
the/DT
annualized/VBN
rate/NN
of/IN
$/$
25.4/CD
billion/CD
in/IN
the/DT
first/JJ
quarter/NN
of/IN
1989/CD
./.
More/RBR
than/IN
half/NN
of/IN
the/DT
``/``
newly/RB
found/VBN
''/''
net/JJ
exports/NNS
were/VBD
from/IN
just/RB
a/DT
few/JJ
service-sector/JJ
categories/NNS
./.
Some/DT
of/IN
the/DT
biggest/JJS
service-industry/JJ
exporters/NNS
--/:
American/JJ
financial-service/JJ
companies/NNS
,/,
for/IN
example/NN
--/:
have/VBP
yet/RB
to/TO
be/VB
fully/RB
included/VBN
in/IN
our/PRP$
export/NN
statistics/NNS
./.
Nearly/RB
10/CD
years/NNS
ago/RB
,/,
representatives/NNS
of/IN
service-sector/JJ
companies/NNS
worked/VBN
out/RP
a/DT
plan/NN
with/IN
the/DT
Commerce/NNP
Department/NNP
to/TO
improve/VB
the/DT
data/NN
on/IN
service-sector/JJ
exports/NNS
./.
Both/DT
groups/NNS
believed/VBD
that/IN
tens/NNS
of/IN
billions/NNS
of/IN
dollars/NNS
of/IN
service/NN
exports/NNS
--/:
such/JJ
as/IN
inbound/JJ
tourism/NN
;/:
legal/JJ
,/,
accounting/NN
and/CC
other/JJ
professional/JJ
services/NNS
furnished/VBN
to/TO
foreigners/NNS
;/:
financial/JJ
,/,
engineering/NN
and/CC
construction/NN
services/NNS
;/:
and/CC
the/DT
like/JJ
--/:
were/VBD
not/RB
being/VBG
counted/VBN
as/IN
exports/NNS
./.
The/DT
monthly/JJ
``/``
trade/NN
deficit/NN
''/''
figure/NN
is/VBZ
limited/VBN
to/TO
traditional/JJ
merchandise/NN
trade/NN
:/:
manufactured/VBN
goods/NNS
and/CC
raw/JJ
materials/NNS
./.
In/IN
the/DT
quarterly/JJ
balance-of-payments/NNS
report/NN
,/,
those/DT
merchandise/NN
trade/NN
figures/NNS
are/VBP
merged/VBN
with/IN
statistics/NNS
on/IN
exports/NNS
and/CC
imports/NNS
of/IN
services/NNS
,/,
as/RB
well/RB
as/IN
returns/NNS
on/IN
investments/NNS
abroad/RB
by/IN
Americans/NNS
and/CC
returns/NNS
on/IN
foreign/JJ
investments/NNS
in/IN
the/DT
U.S/NNP
./.
Over/IN
time/NN
,/,
through/IN
benchmark/NN
surveys/NNS
,/,
the/DT
corrected/VBN
data/NN
on/IN
service/NN
exports/NNS
and/CC
imports/NNS
have/VBP
been/VBN
gathered/VBN
./.
The/DT
first/JJ
three/CD
major/JJ
areas/NNS
of/IN
the/DT
service/NN
sector/NN
to/TO
be/VB
revamped/VBN
were/VBD
expenditures/NNS
by/IN
foreign/JJ
students/NNS
in/IN
the/DT
U.S/NNP
./.
expenditures/NNS
by/IN
Americans/NNS
studying/VBG
abroad/RB
)/)
,/,
some/DT
exports/NNS
by/IN
professional/JJ
firms/NNS
a/DT
law/NN
firm/NN
billing/VBG
a/DT
German/JJ
client/NN
for/IN
services/NNS
rendered/VBN
in/IN
watching/VBG
legislation/NN
in/IN
Washington/NNP
is/VBZ
as/RB
much/JJ
an/DT
export/NN
as/IN
shipment/NN
of/IN
an/DT
American/JJ
jet/NN
engine/NN
data/NNS
from/IN
travel/NN
and/CC
tourism/NN
./.
In/IN
just/RB
these/DT
three/CD
areas/NNS
,/,
the/DT
Commerce/NNP
Department/NNP
found/VBD
$/$
23/CD
billion/CD
more/JJR
exports/NNS
than/IN
previously/RB
reported/VBN
and/CC
$/$
11.6/CD
billion/CD
more/JJR
imports/NNS
,/,
with/IN
the/DT
net/JJ
result/NN
that/IN
the/DT
U.S./NNP
service/NN
surplus/NN
in/IN
1988/CD
increased/VBD
by/IN
$/$
11.3/CD
billion/CD
,/,
to/TO
$/$
19/CD
billion/CD
./.
Combined/VBN
with/IN
recalculations/NNS
and/CC
revisions/NNS
in/IN
other/JJ
trade/NN
areas/NNS
,/,
the/DT
value/NN
of/IN
U.S./NNP
net/JJ
exports/NNS
that/WDT
had/VBD
not/RB
previously/RB
been/VBN
recorded/VBN
was/VBD
about/RB
$/$
20/CD
billion/CD
a/DT
year/NN
./.
That/DT
means/VBZ
that/IN
the/DT
U.S./NNP
trade/NN
deficit/NN
was/VBD
running/VBG
closer/RB
to/TO
$/$
75/CD
billion/CD
than/IN
to/TO
$/$
95/CD
billion/CD
in/IN
1988/CD
,/,
and/CC
$/$
55/CD
billion/CD
$/$
80/CD
billion/CD
in/IN
the/DT
first/JJ
quarter/NN
of/IN
1989/CD
./.
These/DT
revised/VBN
figures/NNS
also/RB
may/MD
explain/VB
some/DT
of/IN
the/DT
recent/JJ
strength/NN
of/IN
the/DT
dollar/NN
./.
The/DT
materially/RB
smaller/JJR
trade/NN
deficit/NN
may/MD
have/VB
been/VBN
already/RB
discounted/VBN
in/IN
the/DT
market/NN
./.
What/WP
does/VBZ
this/DT
mean/NN
for/IN
trade/NN
policy/NN
?/.
Too/RB
early/JJ
to/TO
tell/VB
,/,
but/CC
a/DT
trade/NN
deficit/NN
that/WDT
is/VBZ
significantly/RB
smaller/JJR
than/IN
we/PRP
imagined/VBD
does/VBZ
suggest/VB
a/DT
review/NN
of/IN
our/PRP$
trade/NN
posture/NN
./.
It/PRP
does/VBZ
not/RB
relieve/VB
the/DT
need/NN
for/IN
our/PRP$
market-opening/JJ
efforts/NNS
for/IN
both/DT
goods/NNS
and/CC
services/NNS
,/,
but/CC
it/PRP
does/VBZ
suggest/VB
that/IN
it/PRP
is/VBZ
our/PRP$
exports/NNS
of/IN
services/NNS
,/,
and/CC
not/RB
just/RB
borrowing/NN
,/,
that/WDT
is/VBZ
financing/VBG
our/PRP$
imports/NNS
of/IN
goods/NNS
./.
Mr./NNP
Freeman/NNP
is/VBZ
an/DT
executive/JJ
vice/NN
president/NN
of/IN
American/NNP
Express/NNP
./.
The/DT
collapse/NN
of/IN
a/DT
$/$
6.79/CD
billion/CD
labor-management/JJ
buy-out/NN
of/IN
United/NNP
Airlines/NNP
parent/NN
UAL/NNP
Corp./NNP
may/MD
not/RB
stop/VB
some/DT
of/IN
Wall/NNP
Street/NNP
's/POS
top/JJ
talent/NN
from/IN
collecting/VBG
up/RB
to/TO
$/$
53.7/CD
million/CD
in/IN
fees/NNS
./.
According/VBG
to/TO
one/CD
person/NN
familiar/JJ
with/IN
the/DT
airline/NN
,/,
the/DT
buy-out/NN
group/NN
--/:
led/VBN
by/IN
United/NNP
's/POS
pilots/NNS
union/NN
and/CC
UAL/NNP
Chairman/NNP
Stephen/NNP
Wolf/NNP
--/:
has/VBZ
begun/VBN
billing/VBG
UAL/NNP
for/IN
fees/NNS
and/CC
expenses/NNS
it/PRP
owes/VBZ
to/TO
investment/NN
bankers/NNS
,/,
law/NN
firms/NNS
and/CC
banks/NNS
./.
The/DT
tab/NN
even/RB
covers/VBZ
$/$
8/CD
million/CD
in/IN
commitment/NN
fees/NNS
owed/VBD
to/TO
Citicorp/NNP
and/CC
Chase/NNP
Manhattan/NNP
Corp./NNP
,/,
even/RB
though/IN
their/PRP$
failure/NN
to/TO
obtain/VB
$/$
7.2/CD
billion/CD
in/IN
bank/NN
loans/NNS
for/IN
the/DT
buy-out/NN
was/VBD
the/DT
main/JJ
reason/NN
for/IN
its/PRP$
collapse/NN
./.
Under/IN
a/DT
merger/NN
agreement/NN
reached/VBD
Sept./NNP
14/CD
,/,
the/DT
UAL/NNP
board/NN
agreed/VBD
to/TO
reimburse/VB
certain/JJ
of/IN
the/DT
buy-out/NN
group/NN
's/POS
expenses/NNS
out/IN
of/IN
company/NN
funds/NNS
even/RB
if/IN
the/DT
transaction/NN
was/VBD
n't/RB
completed/VBD
,/,
provided/VBD
the/DT
group/NN
did/VBD
n't/RB
breach/VB
the/DT
agreement/NN
./.
The/DT
failure/NN
to/TO
obtain/VB
financing/NN
does/VBZ
n't/RB
by/IN
itself/PRP
constitute/VB
a/DT
breach/NN
./.
The/DT
merger/NN
agreement/NN
says/VBZ
the/DT
buy-out/NN
group/NN
is/VBZ
entitled/VBN
to/TO
be/VB
repaid/VBN
$/$
26.7/CD
million/CD
in/IN
fees/NNS
for/IN
its/PRP$
investment/NN
bankers/NNS
,/,
Lazard/NNP
Freres/NNP
&/CC
Co./NNP
and/CC
Salomon/NNP
Brothers/NNP
Inc./NNP
,/,
and/CC
its/PRP$
law/NN
firm/NN
,/,
Paul/NNP
Weiss/NNP
Rifkind/NNP
Wharton/NNP
&/CC
Garrison/NNP
./.
The/DT
buy-out/NN
group/NN
is/VBZ
also/RB
entitled/VBN
to/TO
$/$
16/CD
million/CD
to/TO
repay/VB
a/DT
fund/NN
created/VBN
by/IN
the/DT
pilots/NNS
union/NN
for/IN
an/DT
employee/NN
stock/NN
ownership/NN
plan/NN
./.
In/IN
addition/NN
to/TO
the/DT
$/$
8/CD
million/CD
for/IN
Citicorp/NNP
and/CC
Chase/NNP
,/,
Salomon/NNP
Brothers/NNP
is/VBZ
also/RB
owed/VBN
$/$
3/CD
million/CD
for/IN
promising/VBG
to/TO
make/VB
a/DT
$/$
200/CD
million/CD
bridge/NN
loan/NN
./.
A/DT
spokesman/NN
for/IN
the/DT
buy-out/NN
group/NN
was/VBD
n't/RB
immediately/RB
available/JJ
for/IN
comment/NN
./.
Separately/NNP
,/,
UAL/NNP
stock/NN
rose/VBD
$/$
4/CD
a/DT
share/NN
to/TO
$/$
175/CD
in/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
on/IN
reports/NNS
that/IN
Los/NNP
Angeles/NNP
investor/NN
Marvin/NNP
Davis/NNP
has/VBZ
asked/VBN
United/NNP
Airlines/NNP
unions/NNS
if/IN
they/PRP
're/VBP
interested/JJ
in/IN
cooperating/VBG
with/IN
Mr./NNP
Davis/NNP
in/IN
a/DT
new/JJ
bid/NN
for/IN
UAL/NNP
./.
But/CC
neither/DT
the/DT
pilots/NNS
nor/CC
the/DT
machinists/NNS
appear/VBP
interested/VBN
,/,
and/CC
Mr./NNP
Davis/NNP
is/VBZ
barred/VBN
from/IN
making/VBG
a/DT
new/JJ
bid/NN
under/IN
terms/NNS
of/IN
an/DT
agreement/NN
he/PRP
made/VBD
with/IN
UAL/NNP
in/IN
September/NNP
unless/IN
UAL/NNP
accepts/VBZ
an/DT
offer/NN
below/IN
$/$
300/CD
a/DT
share/NN
./.
Wall/NNP
Street/NNP
continued/VBD
to/TO
buckle/VB
under/IN
the/DT
public/JJ
outcry/NN
against/IN
computer-driven/JJ
program/NN
trading/NN
./.
Kidder/NNP
,/,
Peabody/NNP
&/CC
Co./NNP
,/,
a/DT
unit/NN
of/IN
General/NNP
Electric/NNP
Co./NNP
,/,
announced/VBD
it/PRP
would/MD
stop/VB
doing/VBG
stock-index/JJ
arbitrage/NN
for/IN
its/PRP$
own/JJ
account/NN
,/,
and/CC
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
pulled/VBD
out/RB
of/IN
the/DT
practice/NN
altogether/RB
./.
At/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
which/WDT
has/VBZ
been/VBN
buffeted/VBN
by/IN
complaints/NNS
from/IN
angry/JJ
individual/JJ
investors/NNS
and/CC
the/DT
exchange/NN
's/POS
own/JJ
listed/VBN
companies/NNS
,/,
Chairman/NNP
John/NNP
J./NNP
Phelan/NNP
Jr./NNP
held/VBD
an/DT
emergency/NN
meeting/NN
with/IN
senior/JJ
partners/NNS
of/IN
some/DT
of/IN
the/DT
Big/NNP
Board/NNP
's/POS
49/CD
stock/NN
specialist/NN
firms/NNS
./.
The/DT
specialists/NNS
,/,
a/DT
trader/NN
said/VBD
,/,
were/VBD
``/``
livid/JJ
''/''
about/IN
Mr./NNP
Phelan/NNP
's/POS
recent/JJ
remarks/NNS
that/IN
sophisticated/JJ
computer-driven/JJ
trading/NN
strategies/NNS
are/VBP
``/``
here/RB
to/TO
stay/VB
./.
''/''
Many/JJ
investors/NNS
blame/VBP
program/NN
trading/NN
for/IN
wild/JJ
swings/NNS
in/IN
the/DT
stock/NN
market/NN
,/,
including/VBG
the/DT
190-point/JJ
plunge/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
on/IN
Oct./NNP
13/CD
./.
A/DT
specialist/NN
is/VBZ
an/DT
exchange/NN
member/NN
designated/VBN
to/TO
maintain/VB
a/DT
fair/JJ
and/CC
orderly/JJ
market/NN
in/IN
a/DT
specified/VBN
stock/NN
./.
Mr./NNP
Phelan/NNP
's/POS
meeting/NN
with/IN
the/DT
floor/NN
brokers/NNS
comes/VBZ
as/IN
he/PRP
prepares/VBZ
to/TO
explain/VB
the/DT
exchange/NN
's/POS
position/NN
on/IN
program/NN
trading/NN
to/TO
key/JJ
congressional/JJ
regulators/NNS
in/IN
a/DT
closed/JJ
session/NN
tomorrow/NN
,/,
according/VBG
to/TO
exchange/NN
officials/NNS
./.
A/DT
Big/NNP
Board/NNP
spokesman/NN
would/MD
only/RB
say/VB
,/,
``/``
We/PRP
're/VBP
working/VBG
the/DT
problem/NN
and/CC
looking/VBG
at/IN
the/DT
issue/NN
and/CC
meeting/VBG
with/IN
a/DT
broad/JJ
number/NN
of/IN
customers/NNS
and/CC
constituents/NNS
to/TO
get/VB
their/PRP$
views/NNS
and/CC
ideas/NNS
on/IN
the/DT
issue/NN
./.
''/''
The/DT
program-trading/JJ
outcry/NN
was/VBD
taken/VBN
to/TO
a/DT
new/JJ
level/NN
when/WRB
giant/JJ
Contel/NNP
Corp./NNP
said/VBD
it/PRP
and/CC
20/CD
or/CC
more/JJR
of/IN
the/DT
Big/NNP
Board/NNP
's/POS
listed/VBN
companies/NNS
are/VBP
forming/VBG
an/DT
unprecedented/JJ
alliance/NN
to/TO
complain/VB
about/IN
the/DT
exchange/NN
's/POS
role/NN
in/IN
program/NN
trading/NN
./.
The/DT
decision/NN
by/IN
Merrill/NNP
,/,
the/DT
nation/NN
's/POS
largest/JJS
securities/NNS
firm/NN
,/,
represents/VBZ
the/DT
biggest/JJS
retreat/NN
yet/RB
from/IN
program/NN
trading/NN
./.
Merrill/NNP
has/VBZ
been/VBN
the/DT
fourth-biggest/JJ
stock-index/JJ
arbitrage/NN
trader/NN
on/IN
the/DT
Big/NNP
Board/NNP
this/DT
year/NN
,/,
executing/VBG
an/DT
average/NN
of/IN
18.1/CD
million/CD
shares/NNS
a/DT
month/NN
in/IN
such/JJ
trades/NNS
,/,
or/CC
about/RB
one/CD
million/CD
shares/NNS
a/DT
day/NN
./.
Merrill/NN
's/POS
move/NN
is/VBZ
one/CD
of/IN
the/DT
most/RBS
sweeping/JJ
program-trading/JJ
pullbacks/NNS
of/IN
recent/JJ
days/NNS
,/,
because/IN
the/DT
big/JJ
securities/NNS
firm/NN
will/MD
no/RB
longer/RB
execute/VB
stock-index/JJ
arbitrage/NN
trades/NNS
for/IN
customers/NNS
./.
Most/JJS
Wall/NNP
Street/NNP
firms/NNS
,/,
in/IN
pulling/VBG
back/RB
,/,
have/VBP
merely/RB
stopped/VBN
such/JJ
trading/VBG
for/IN
their/PRP$
own/JJ
accounts/NNS
./.
Merrill/NNP
has/VBZ
been/VBN
one/CD
of/IN
the/DT
main/JJ
firms/NNS
executing/VBG
index/NN
arbitrage/NN
for/IN
customers/NNS
./.
Merrill/NNP
also/RB
said/VBD
it/PRP
is/VBZ
lobbying/VBG
for/IN
significant/JJ
regulatory/JJ
controls/NNS
on/IN
program/NN
trading/NN
,/,
including/VBG
tough/JJ
margin/NN
--/:
or/CC
down-payment/NN
--/:
requirements/NNS
and/CC
limits/NNS
on/IN
price/NN
moves/NNS
for/IN
program-driven/JJ
financial/JJ
futures/NNS
./.
Merrill/NNP
,/,
in/IN
a/DT
statement/NN
by/IN
Chairman/NNP
William/NNP
A./NNP
Schreyer/NNP
and/CC
President/NNP
Daniel/NNP
P./NNP
Tully/NNP
,/,
said/VBD
index/NN
arbitrage/NN
``/``
has/VBZ
been/VBN
clearly/RB
identified/VBN
in/IN
the/DT
investing/JJ
public/NN
's/POS
mind/NN
as/IN
a/DT
contributing/JJ
factor/NN
to/TO
excess/JJ
market/NN
volatility/NN
,/,
''/''
so/IN
Merrill/NNP
wo/MD
n't/RB
execute/VB
such/JJ
trades/NNS
until/IN
``/``
effective/JJ
controls/NNS
''/''
are/VBP
in/IN
place/NN
./.
In/IN
stock-index/JJ
arbitrage/NN
,/,
traders/NNS
buy/VBP
and/CC
sell/VBP
large/JJ
amounts/NNS
of/IN
stocks/NNS
with/IN
offsetting/VBG
trades/NNS
in/IN
stock-index/JJ
futures/NNS
and/CC
options/NNS
./.
The/DT
idea/NN
is/VBZ
to/TO
lock/VB
in/RB
profits/NNS
from/IN
short-term/JJ
swings/NNS
in/IN
volatile/JJ
markets/NNS
./.
Last/JJ
Thursday/NNP
,/,
PaineWebber/NNP
Group/NNP
Inc./NNP
also/RB
said/VBD
it/PRP
would/MD
cease/VB
index/NN
arbitrage/NN
altogether/RB
,/,
but/CC
the/DT
firm/JJ
was/VBD
n't/RB
as/RB
big/JJ
an/DT
index/NN
arbitrager/NN
as/IN
Merrill/NN
is/VBZ
./.
Other/JJ
large/JJ
firms/NNS
,/,
including/VBG
Bear/NNP
,/,
Stearns/NNP
&/CC
Co./NNP
and/CC
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
,/,
last/JJ
week/NN
announced/VBD
a/DT
pullback/NN
from/IN
index/NN
arbitrage/NN
,/,
but/CC
only/RB
for/IN
the/DT
firms/NNS
'/POS
own/JJ
accounts/NNS
./.
Kidder/NNP
made/VBD
an/DT
abrupt/JJ
about-face/NN
on/IN
program/NN
trading/NN
yesterday/NN
,/,
after/IN
a/DT
special/JJ
meeting/NN
between/IN
the/DT
firm/NN
's/POS
president/NN
and/CC
chief/JJ
executive/NN
officer/NN
,/,
Michael/NNP
Carpenter/NNP
,/,
and/CC
its/PRP$
senior/JJ
managers/NNS
./.
Just/RB
a/DT
week/NN
ago/RB
,/,
Mr./NNP
Carpenter/NNP
staunchly/RB
defended/VBD
index/NN
arbitrage/NN
at/IN
Kidder/NNP
,/,
the/DT
most/RBS
active/JJ
index-arbitrage/NN
trading/NN
firm/NN
on/IN
the/DT
stock/NN
exchange/NN
this/DT
year/NN
./.
Index/NN
arbitrage/NN
,/,
Mr./NNP
Carpenter/NNP
said/VBD
last/JJ
week/NN
,/,
does/VBZ
n't/RB
have/VB
a/DT
``/``
negative/JJ
impact/NN
on/IN
the/DT
market/NN
as/IN
a/DT
whole/NN
''/''
and/CC
Kidder/NNP
's/POS
customers/NNS
were/VBD
``/``
sophisticated/JJ
''/''
enough/RB
to/TO
know/VB
that/DT
./.
But/CC
yesterday/NN
,/,
Mr./NNP
Carpenter/NNP
said/VBD
big/JJ
institutional/JJ
investors/NNS
,/,
which/WDT
he/PRP
would/MD
n't/RB
identify/VB
,/,
``/``
told/VBD
us/PRP
they/PRP
would/MD
n't/RB
do/VB
business/NN
with/IN
firms/NNS
''/''
that/WDT
continued/VBD
to/TO
do/VB
index/NN
arbitrage/NN
for/IN
their/PRP$
own/JJ
accounts/NNS
./.
``/``
We/PRP
were/VBD
following/VBG
the/DT
trend/NN
of/IN
our/PRP$
competitors/NNS
who/WP
were/VBD
under/IN
pressure/NN
from/IN
institutions/NNS
,/,
''/''
he/PRP
said/VBD
./.
Kidder/NNP
so/RB
far/RB
this/DT
year/NN
has/VBZ
executed/VBN
a/DT
monthly/JJ
average/NN
of/IN
37.8/CD
million/CD
shares/NNS
in/IN
index-arbitrage/NN
trading/NN
,/,
and/CC
is/VBZ
second/JJ
only/RB
to/TO
Morgan/NNP
Stanley/NNP
in/IN
overall/JJ
program/NN
trading/NN
,/,
which/WDT
includes/VBZ
index/NN
arbitrage/NN
./.
Most/JJS
of/IN
Kidder/NNP
's/POS
program/NN
trading/NN
is/VBZ
for/IN
its/PRP$
own/JJ
account/NN
,/,
according/VBG
to/TO
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
Kidder/NNP
denied/VBD
that/IN
GE/NNP
's/POS
chairman/NN
and/CC
chief/JJ
executive/NN
,/,
John/NNP
F./NNP
Welch/NNP
,/,
had/VBD
anything/NN
to/TO
do/VB
with/IN
Kidder/NNP
's/POS
decision/NN
./.
But/CC
at/IN
least/JJS
one/CD
chief/NN
executive/NN
said/VBD
he/PRP
called/VBD
Mr./NNP
Welch/NNP
to/TO
complain/VB
about/IN
Kidder/NNP
's/POS
aggressive/JJ
use/NN
of/IN
program/NN
trading/NN
,/,
and/CC
other/JJ
market/NN
sources/NNS
said/VBD
they/PRP
understood/VBD
that/IN
Mr./NNP
Welch/NNP
received/VBD
many/JJ
phone/NN
calls/NNS
complaining/VBG
about/IN
Kidder/NNP
's/POS
reliance/NN
on/IN
index/NN
arbitrage/NN
as/IN
a/DT
major/JJ
business/NN
./.
Kidder/NNP
has/VBZ
generally/RB
been/VBN
sensitive/JJ
to/TO
suggestions/NNS
that/IN
GE/NNP
makes/VBZ
decisions/NNS
for/IN
its/PRP$
Kidder/NNP
unit/NN
./.
``/``
Our/PRP$
decision/NN
had/VBD
nothing/NN
to/TO
do/VB
with/IN
any/DT
pressure/NN
Mr./NNP
Welch/NNP
received/VBD
,/,
''/''
Mr./NNP
Carpenter/NNP
said/VBD
./.
``/``
This/DT
was/VBD
a/DT
Kidder/NNP
Peabody/NNP
stand-alone/JJ
decision/NN
./.
''/''
A/DT
spokeswoman/NN
for/IN
GE/NNP
in/IN
Fairfield/NNP
,/,
Conn./NNP
,/,
said/VBD
,/,
``/``
Absolutely/RB
no/DT
one/PRP
spoke/VBD
to/TO
Jack/NNP
Welch/NNP
on/IN
this/DT
subject/NN
''/''
and/CC
added/VBD
,/,
``/``
Anyone/NN
who/WP
claims/VBZ
they/PRP
talked/VBD
to/TO
Jack/NNP
Welch/NNP
is/VBZ
n't/RB
telling/VBG
the/DT
truth/NN
./.
''/''
Supporters/NNS
of/IN
index/NN
arbitrage/NN
have/VBP
n't/RB
been/VBN
publicly/RB
sticking/VBG
up/RP
for/IN
the/DT
trading/NN
strategy/NN
,/,
as/IN
some/DT
did/VBD
during/IN
the/DT
post-crash/JJ
outcry/NN
of/IN
1987/CD
./.
But/CC
Merrill/NNP
Lynch/NNP
,/,
in/IN
its/PRP$
statement/NN
about/IN
pulling/VBG
out/RB
of/IN
index/NN
arbitrage/NN
,/,
suggested/VBD
that/IN
the/DT
current/JJ
debate/NN
has/VBZ
missed/VBN
the/DT
mark/NN
./.
Merrill/NN
said/VBD
it/PRP
continues/VBZ
to/TO
believe/VB
that/IN
``/``
the/DT
causes/NNS
of/IN
excess/JJ
market/NN
volatility/NN
are/VBP
far/RB
more/RBR
complex/JJ
than/IN
any/DT
particular/JJ
computer/NN
trading/NN
strategy/NN
./.
Indeed/RB
,/,
there/EX
are/VBP
legitimate/JJ
hedging/NN
strategies/NNS
used/VBN
by/IN
managers/NNS
of/IN
large/JJ
portfolios/NNS
such/JJ
as/IN
pension/NN
funds/NNS
that/WDT
involve/VBP
program/NN
trading/NN
as/IN
a/DT
means/NN
of/IN
protecting/VBG
the/DT
assets/NNS
of/IN
their/PRP$
pension/NN
beneficiaries/NNS
./.
''/''
Merrill/NNP
's/POS
index/NN
arbitragers/NNS
will/MD
continue/VB
to/TO
do/VB
other/JJ
kinds/NNS
of/IN
computer-assisted/JJ
program/NN
trading/NN
,/,
so/IN
there/EX
probably/RB
wo/MD
n't/RB
be/VB
any/DT
layoffs/NNS
at/IN
the/DT
firm/NN
,/,
people/NNS
familiar/JJ
with/IN
Merrill/NNP
's/POS
program/NN
operation/NN
said/VBD
./.
Meanwhile/RB
,/,
Bear/NNP
Stearns/NNP
Chairman/NNP
and/CC
Chief/NNP
Executive/NNP
Alan/NNP
C./NNP
Greenberg/NNP
said/VBD
his/PRP$
firm/NN
will/MD
continue/VB
stock-index/JJ
arbitrage/NN
for/IN
its/PRP$
clients/NNS
./.
At/IN
the/DT
firm/NN
's/POS
annual/JJ
meeting/NN
last/JJ
night/NN
,/,
he/PRP
told/VBD
shareholders/NNS
that/IN
index/NN
arbitrage/NN
wo/MD
n't/RB
go/VB
away/RB
,/,
despite/IN
the/DT
public/JJ
outcry/NN
./.
``/``
If/IN
they/PRP
think/VBP
they/PRP
are/VBP
going/VBG
to/TO
stop/VB
index/NN
arbitrage/NN
by/IN
causing/VBG
a/DT
few/JJ
Wall/NNP
Street/NNP
firms/NNS
to/TO
quit/VB
,/,
they/PRP
are/VBP
crazy/JJ
,/,
''/''
Mr./NNP
Greenberg/NNP
said/VBD
./.
``/``
It/PRP
's/VBZ
not/RB
going/VBG
to/TO
stop/VB
it/PRP
at/IN
all/DT
./.
''/''
Mr./NNP
Greenberg/NNP
,/,
noting/VBG
that/IN
stock-index/JJ
arbitrage/NN
rises/VBZ
and/CC
ebbs/VBZ
with/IN
stock/NN
market/NN
's/POS
volatility/NN
,/,
said/VBD
that/IN
for/IN
the/DT
first/JJ
four/CD
months/NNS
of/IN
the/DT
firm/NN
's/POS
fiscal/JJ
year/NN
beginning/NN
in/IN
July/NNP
,/,
stock-index/JJ
arbitrage/NN
had/VBD
been/VBN
a/DT
``/``
break-even/JJ
''/''
proposition/NN
for/IN
Bear/NNP
Stearns/NNP
./.
In/IN
response/NN
to/TO
a/DT
shareholder/NN
's/POS
suggestion/NN
,/,
Mr./NNP
Greenberg/NNP
agreed/VBD
that/IN
European/JJ
firms/NNS
will/MD
simply/RB
pick/VB
up/RP
the/DT
index-arbitrage/NN
business/NN
left/VBD
behind/IN
by/IN
U.S./NNP
institutions/NNS
./.
Pressure/NN
from/IN
big/JJ
institutional/JJ
investors/NNS
has/VBZ
been/VBN
the/DT
major/JJ
catalyst/NN
for/IN
Wall/NNP
Street/NNP
's/POS
program-trading/JJ
pullback/NN
./.
And/CC
there/EX
was/VBD
speculation/NN
yesterday/NN
that/IN
Fidelity/NNP
Investments/NNP
and/CC
other/JJ
large/JJ
mutual-fund/JJ
companies/NNS
might/MD
soon/RB
follow/VB
the/DT
lead/NN
of/IN
Kemper/NNP
Corp./NNP
and/CC
other/JJ
institutions/NNS
in/IN
cutting/VBG
off/RP
trading/VBG
business/NN
to/TO
securities/NNS
firms/NNS
that/WDT
do/VBP
program/VB
trading/NN
./.
A/DT
Fidelity/NNP
spokesman/NN
in/IN
Boston/NNP
denied/VBD
the/DT
speculation/NN
,/,
saying/VBG
the/DT
program-trading/JJ
issue/NN
was/VBD
more/JJR
of/IN
a/DT
regulatory/JJ
problem/NN
./.
But/CC
a/DT
much/RB
smaller/JJR
mutual/JJ
fund/NN
company/NN
,/,
the/DT
USAA/NNP
Investment/NNP
Management/NNP
Co./NNP
unit/NN
of/IN
USAA/NNP
,/,
San/NNP
Antonio/NNP
,/,
Texas/NNP
,/,
said/VBD
it/PRP
informed/VBD
nine/CD
national/JJ
brokerage/NN
firms/NNS
it/PRP
will/MD
cease/VB
business/NN
with/IN
them/PRP
unless/IN
they/PRP
stop/VBP
index-arbitrage/NN
trading/NN
./.
USAA/NNP
,/,
with/IN
400,000/CD
mutual/JJ
fund/NN
accounts/NNS
,/,
manages/VBZ
more/JJR
than/IN
$/$
10/CD
billion/CD
,/,
$/$
2/CD
billion/CD
of/IN
which/WDT
is/VBZ
in/IN
the/DT
stock/NN
market/NN
./.
Michael/NNP
J.C./NNP
Roth/NNP
,/,
USAA/NNP
executive/NN
vice/NN
president/NN
,/,
called/VBN
program/NN
trading/NN
``/``
mindless/JJ
./.
''/''
He/PRP
said/VBD
there/EX
is/VBZ
``/``
no/DT
valid/JJ
investment/NN
reason/NN
''/''
for/IN
stock-index/JJ
futures/NNS
to/TO
exist/VB
./.
A/DT
program-bashing/JJ
move/NN
is/VBZ
clearly/RB
on/RP
./.
Charles/NNP
Wohlstetter/NNP
,/,
chairman/NN
of/IN
Contel/NNP
,/,
who/WP
is/VBZ
helping/VBG
organize/VB
the/DT
alliance/NN
of/IN
Big/NNP
Board-listed/JJ
firms/NNS
,/,
said/VBD
he/PRP
had/VBD
no/DT
time/NN
to/TO
work/VB
yesterday/NN
because/IN
he/PRP
received/VBD
so/RB
many/JJ
phone/NN
calls/NNS
,/,
faxes/NNS
and/CC
letters/NNS
supporting/VBG
his/PRP$
view/NN
that/IN
the/DT
Big/NNP
Board/NNP
has/VBZ
been/VBN
turned/VBN
into/IN
a/DT
``/``
gambling/NN
casino/NN
''/''
by/IN
program/NN
traders/NNS
./.
``/``
We/PRP
are/VBP
reaching/VBG
the/DT
moment/NN
of/IN
truth/NN
''/''
on/IN
Wall/NNP
Street/NNP
,/,
said/VBD
Rep./NNP
Edward/NNP
J./NNP
Markey/NNP
D./NNP
,/,
Mass./NNP
chairman/NN
of/IN
the/DT
House/NNP
subcommittee/NN
on/IN
telecommunications/NNS
and/CC
finance/NN
./.
``/``
{/(
Wall/NNP
Street/NNP
Shakespeare/NNP
said/VBD
--/:
the/DT
trouble/NN
is/VBZ
not/RB
in/IN
our/PRP$
stars/NNS
,/,
but/CC
in/IN
ourselves/PRP
./.
''/''
Craig/NNP
Torres/NNP
and/CC
Anne/NNP
Newman/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
recently/RB
ceased/VBD
index/NN
arbitrage/NN
for/IN
their/PRP$
own/JJ
accounts/NNS
,/,
in/IN
millions/NNS
of/IN
shares/NNS
such/JJ
trading/NN
for/IN
its/PRP$
own/JJ
account/NN
An/DT
ancient/JJ
red-figured/JJ
Greek/JJ
kylix/NN
,/,
or/CC
drinking/NN
cup/NN
,/,
was/VBD
recovered/VBN
backstage/RB
at/IN
Sotheby/NNP
's/POS
this/DT
spring/NN
and/CC
has/VBZ
been/VBN
returned/VBN
to/TO
the/DT
Manhattan/NNP
couple/NN
who/WP
lost/VBD
it/PRP
in/IN
a/DT
burglary/NN
three/CD
years/NNS
ago/RB
./.
Robert/NNP
Guy/NNP
,/,
an/DT
associate/JJ
curator/NN
at/IN
the/DT
Princeton/NNP
Art/NNP
Museum/NNP
,/,
was/VBD
previewing/VBG
a/DT
June/NNP
antiquities/NNS
sale/NN
at/IN
the/DT
auction/NN
house/NN
when/WRB
he/PRP
recognized/VBD
the/DT
kylix/NN
,/,
which/WDT
he/PRP
,/,
as/IN
a/DT
specialist/NN
in/IN
Attic/JJ
pottery/NN
and/CC
a/DT
careful/JJ
reader/NN
of/IN
the/DT
Stolen/NNP
Art/NNP
Alert/NNP
in/IN
``/``
IFAR/NNP
Reports/NNP
,/,
''/''
knew/VBD
was/VBD
stolen/VBN
./.
The/DT
timing/NN
of/IN
his/PRP$
visit/NN
was/VBD
fortuitous/JJ
;/:
the/DT
man/NN
who/WP
had/VBD
brought/VBN
it/PRP
in/RB
for/IN
an/DT
estimate/NN
had/VBD
returned/VBN
to/TO
collect/VB
it/PRP
and/CC
was/VBD
waiting/VBG
in/IN
the/DT
hall/NN
./.
To/TO
confirm/VB
Mr./NNP
Guy/NNP
's/POS
identification/NN
,/,
Sotheby/NNP
's/POS
and/CC
IFAR/NNP
exchanged/VBD
photos/NNS
by/IN
fax/NN
,/,
and/CC
the/DT
waiting/VBG
man/NN
,/,
apparently/RB
innocent/JJ
of/IN
knowledge/NN
that/IN
the/DT
kylix/NN
was/VBD
stolen/VBN
,/,
agreed/VBN
to/TO
release/VB
it/PRP
./.
The/DT
cup/NN
had/VBD
been/VBN
insured/VBN
,/,
and/CC
in/IN
short/JJ
order/NN
it/PRP
was/VBD
given/VBN
over/RP
to/TO
a/DT
Chubb/NNP
&/CC
Son/NNP
representative/NN
./.
The/DT
original/JJ
owners/NNS
happily/RB
repaid/VBD
the/DT
claim/NN
and/CC
took/VBD
their/PRP$
kylix/NN
home/NN
./.
A/DT
former/JJ
curator/NN
of/IN
the/DT
Museum/NNP
of/IN
Cartoon/NNP
Art/NNP
in/IN
Rye/NNP
Brook/NNP
,/,
N.Y./NNP
,/,
pleaded/VBD
guilty/JJ
in/IN
July/NNP
to/TO
stealing/VBG
and/CC
selling/VBG
original/JJ
signed/VBN
and/CC
dated/VBN
comic/JJ
strips/NNS
,/,
among/IN
them/PRP
29/CD
Dick/NNP
Tracy/NNP
strips/NNS
by/IN
Chester/NNP
Gould/NNP
,/,
77/CD
Prince/NNP
Valiant/NNP
Sunday/NNP
cartoons/NNS
by/IN
Hal/NNP
Foster/NNP
,/,
and/CC
a/DT
dozen/NN
Walt/NNP
Disney/NNP
animation/NN
celluloids/NNS
,/,
according/VBG
to/TO
Barbara/NNP
Hammond/NNP
,/,
the/DT
museum/NN
's/POS
director/NN
./.
He/PRP
sold/VBD
them/PRP
well/RB
below/IN
market/NN
value/NN
to/TO
raise/VB
cash/NN
``/``
to/TO
pay/VB
off/IN
mounting/VBG
credit-card/NN
debts/NNS
,/,
''/''
incurred/VBN
to/TO
buy/VB
presents/NNS
for/IN
his/PRP$
girlfriend/NN
,/,
his/PRP$
attorney/NN
,/,
Philip/NNP
Russell/NNP
,/,
told/VBD
IFAR/NNP
./.
The/DT
curator/NN
,/,
27-year-old/JJ
Sherman/NNP
Krisher/NNP
of/IN
Greenwich/NNP
,/,
Conn./NNP
,/,
had/VBD
worked/VBN
his/PRP$
way/NN
up/IN
from/IN
janitor/NN
in/IN
seven/CD
years/NNS
at/IN
the/DT
museum/NN
./.
The/DT
theft/NN
was/VBD
discovered/VBN
early/RB
this/DT
year/NN
,/,
soon/RB
after/RB
Ms./NNP
Hammond/NNP
took/VBD
her/PRP$
post/NN
./.
Sentencing/VBG
was/VBD
postponed/VBN
on/IN
Aug./NNP
18/CD
,/,
when/WRB
Mr./NNP
Krisher/NNP
was/VBD
hospitalized/VBN
for/IN
depression/NN
./.
His/PRP$
efforts/NNS
to/TO
get/VB
back/RB
the/DT
stolen/VBN
strips/NNS
had/VBD
resulted/VBN
in/IN
recovery/NN
of/IN
just/RB
three/CD
./.
But/CC
on/IN
Oct./NNP
6/CD
,/,
he/PRP
had/VBD
reason/NN
to/TO
celebrate/VB
./.
Two/CD
days/NNS
earlier/RBR
,/,
his/PRP$
attorney/NN
met/VBN
in/IN
a/DT
Park/NNP
Avenue/NNP
law/NN
office/NN
with/IN
a/DT
cartoon/NN
dealer/NN
who/WP
expected/VBD
to/TO
sell/VB
44/CD
of/IN
the/DT
most/RBS
important/JJ
stolen/VBN
strips/NNS
to/TO
Mr./NNP
Russell/NNP
for/IN
$/$
62,800/CD
./.
Instead/RB
,/,
New/NNP
York/NNP
City/NNP
police/NNS
seized/VBD
the/DT
stolen/VBN
goods/NNS
,/,
and/CC
Mr./NNP
Krisher/NNP
avoided/VBD
jail/NN
./.
He/PRP
was/VBD
sentenced/VBN
to/TO
500/CD
hours/NNS
of/IN
community/NN
service/NN
and/CC
restitution/NN
to/TO
the/DT
museum/NN
of/IN
$/$
45,000/CD
./.
Authorities/NNS
at/IN
London/NNP
's/POS
Heathrow/NNP
Airport/NNP
are/VBP
investigating/VBG
the/DT
disappearance/NN
of/IN
a/DT
Paul/NNP
Gauguin/NNP
watercolor/NN
,/,
``/``
Young/NNP
Tahitian/NNP
Woman/NNP
in/IN
a/DT
Red/NNP
Pareo/NNP
,/,
''/''
that/WDT
has/VBZ
two/CD
sketches/NNS
on/IN
its/PRP$
verso/NN
opposite/JJ
side/NN
./.
Valued/VBN
at/IN
$/$
1.3/CD
million/CD
,/,
it/PRP
was/VBD
part/NN
of/IN
a/DT
four-crate/JJ
shipment/NN
./.
The/DT
air-waybill/JJ
number/NN
was/VBD
changed/VBN
en/IN
route/NN
,/,
and/CC
paper/NN
work/NN
showing/VBG
that/IN
the/DT
crates/NNS
had/VBD
cleared/VBN
customs/NNS
was/VBD
misplaced/VBN
,/,
so/IN
it/PRP
was/VBD
a/DT
week/NN
before/RB
three/CD
of/IN
the/DT
four/CD
crates/NNS
could/MD
be/VB
located/VBN
in/IN
a/DT
bonded/VBN
warehouse/NN
and/CC
the/DT
Gauguin/NNP
discovered/VBN
missing/VBG
./.
Although/IN
Heathrow/NNP
authorities/NNS
have/VBP
been/VBN
watching/VBG
a/DT
group/NN
of/IN
allegedly/RB
crooked/JJ
baggage/NN
handlers/NNS
for/IN
some/DT
time/NN
,/,
the/DT
Gauguin/NNP
may/MD
be/VB
``/``
lost/VBN
./.
''/''
Chief/NNP
Inspector/NNP
Peter/NNP
Seacomb/NNP
of/IN
the/DT
Criminal/NNP
Investigation/NNP
Department/NNP
at/IN
the/DT
airport/NN
said/VBD
,/,
``/``
It/PRP
is/VBZ
not/RB
uncommon/JJ
for/IN
property/NN
to/TO
be/VB
temporarily/RB
mislaid/VBN
or/CC
misrouted/VBN
./.
''/''
Officials/NNS
at/IN
the/DT
University/NNP
of/IN
Virginia/NNP
Art/NNP
Museum/NNP
certainly/RB
would/MD
agree/VB
./.
Their/PRP$
museum/NN
had/VBD
purchased/VBN
an/DT
Attic/JJ
black-figured/JJ
column/NN
krater/NN
and/CC
shipped/VBD
it/PRP
from/IN
London/NNP
./.
It/PRP
was/VBD
reported/VBN
stolen/VBN
in/IN
transit/NN
en/IN
route/NN
to/TO
Washington/NNP
,/,
D.C./NNP
,/,
in/IN
February/NNP
./.
Months/NNS
later/RB
,/,
the/DT
Greek/JJ
vase/NN
arrived/VBN
in/IN
good/JJ
condition/NN
at/IN
the/DT
museum/NN
in/IN
Charlottesville/NNP
,/,
having/VBG
inexplicably/RB
traveled/VBN
by/IN
a/DT
circuitous/JJ
route/NN
through/IN
Nairobi/NNP
./.
Two/CD
Mexican/JJ
college/NN
dropouts/NNS
,/,
not/RB
professional/JJ
art/NN
thieves/NNS
,/,
have/VBP
been/VBN
arrested/VBN
for/IN
a/DT
1985/CD
Christmas/NNP
Eve/NNP
burglary/NN
from/IN
the/DT
National/NNP
Museum/NNP
of/IN
Anthropology/NNP
in/IN
Mexico/NNP
City/NNP
./.
About/RB
140/CD
Mayan/JJ
,/,
Aztec/JJ
,/,
Mixtec/JJ
and/CC
Zapotec/JJ
objects/NNS
,/,
including/VBG
some/DT
of/IN
Mexico/NNP
's/POS
best-known/JJ
archaeological/JJ
treasures/NNS
,/,
were/VBD
taken/VBN
./.
The/DT
government/NN
offered/VBD
a/DT
reward/NN
for/IN
the/DT
return/NN
of/IN
the/DT
antiquities/NNS
,/,
but/CC
routine/JJ
police/NN
work/NN
led/VBN
to/TO
the/DT
recovery/NN
./.
As/IN
it/PRP
turned/VBD
out/RP
,/,
Carlos/NNP
Perches/NNP
Trevino/NNP
and/CC
Ramon/NNP
Sardina/NNP
Garcia/NNP
had/VBD
hidden/VBN
the/DT
haul/NN
in/IN
a/DT
closet/NN
in/IN
the/DT
Perches/NNP
family/NN
's/POS
home/NN
for/IN
a/DT
year/NN
./.
Then/RB
they/PRP
took/VBD
the/DT
art/NN
to/TO
Acapulco/NNP
and/CC
began/VBD
to/TO
trade/VB
some/DT
of/IN
it/PRP
for/IN
cocaine/NN
./.
Information/NN
from/IN
an/DT
arrested/VBN
drug/NN
trafficker/NN
led/VBN
to/TO
the/DT
two/CD
men/NNS
and/CC
the/DT
recovery/NN
of/IN
almost/RB
all/DT
the/DT
stolen/VBN
art/NN
./.
Among/IN
other/JJ
happy/JJ
news/NN
bulletins/NNS
from/IN
the/DT
German/NNP
Democratic/NNP
Republic/NNP
,/,
the/DT
Leipzig/NNP
Museum/NNP
of/IN
Fine/NNP
Arts/NNP
announced/VBD
that/IN
it/PRP
has/VBZ
recovered/VBN
``/``
Cemetery/NNP
in/IN
the/DT
Snow/NNP
,/,
''/''
a/DT
painting/NN
by/IN
the/DT
German/JJ
Romantic/JJ
painter/NN
Caspar/NNP
David/NNP
Friedrich/NNP
./.
The/DT
artist/NN
's/POS
melancholy/JJ
subjects/NNS
bring/VBP
high/JJ
prices/NNS
on/IN
the/DT
world/NN
market/NN
,/,
and/CC
the/DT
U.S./NNP
State/NNP
Department/NNP
notified/VBD
IFAR/NNP
of/IN
the/DT
theft/NN
in/IN
February/NNP
1988/CD
./.
According/VBG
to/TO
a/DT
source/NN
at/IN
the/DT
East/NNP
Europe/NNP
desk/NN
,/,
two/CD
previously/RB
convicted/VBN
felons/NNS
were/VBD
charged/VBN
,/,
tried/VBN
,/,
convicted/VBN
and/CC
sentenced/VBN
to/TO
prison/NN
terms/NNS
of/IN
four/CD
and/CC
12/CD
years/NNS
./.
The/DT
precious/JJ
canvas/NN
,/,
cut/VBN
from/IN
its/PRP$
frame/NN
at/IN
the/DT
time/NN
of/IN
the/DT
theft/NN
,/,
was/VBD
found/VBN
in/IN
nearby/JJ
Jena/NNP
,/,
hidden/VBN
in/IN
the/DT
upholstery/NN
of/IN
an/DT
easy/JJ
chair/NN
in/IN
the/DT
home/NN
of/IN
the/DT
girlfriend/NN
of/IN
one/CD
of/IN
the/DT
thieves/NNS
./.
No/DT
charges/NNS
were/VBD
brought/VBN
against/IN
her/PRP
./.
Trompe/FW
l'oeil/FW
painting/NN
is/VBZ
meant/VBN
to/TO
fool/VB
the/DT
eye/NN
,/,
but/CC
Robert/NNP
Lawrence/NNP
Trotter/NNP
,/,
35/CD
,/,
of/IN
Kennett/NNP
Square/NNP
,/,
Pa./NNP
,/,
took/VBD
his/PRP$
fooling/NN
seriously/RB
./.
He/PRP
painted/VBD
one/CD
himself/PRP
in/IN
the/DT
style/NN
of/IN
John/NNP
Haberle/NNP
and/CC
sold/VBD
it/PRP
as/IN
a/DT
19th-century/NN
original/NN
to/TO
antique/JJ
dealers/NNS
in/IN
Woodbridge/NNP
,/,
Conn/NNP
./.
Mr./NNP
Trotter/NNP
's/POS
painting/NN
showed/VBD
a/DT
wall/NN
of/IN
wood/NN
boards/NNS
with/IN
painted/VBN
ribbons/NNS
tacked/VBD
down/RP
in/IN
a/DT
rectangle/NN
;/:
tucked/VBN
behind/IN
the/DT
ribbons/NNS
were/VBD
envelopes/NNS
,/,
folded/VBN
,/,
faded/VBN
and/CC
crumpled/VBN
papers/NNS
and/CC
currency/NN
./.
Mr./NNP
Trotter/NNP
's/POS
fake/JJ
Haberle/NNP
was/VBD
offered/VBN
at/IN
a/DT
bargain/NN
price/NN
of/IN
$/$
25,000/CD
with/IN
a/DT
phony/JJ
story/NN
that/IN
it/PRP
belonged/VBD
to/TO
his/PRP$
wife/NN
's/POS
late/JJ
aunt/NN
in/IN
New/NNP
Canaan/NNP
,/,
Conn/NNP
./.
The/DT
dealers/NNS
immediately/RB
showed/VBD
their/PRP$
new/JJ
acquisition/NN
to/TO
an/DT
expert/NN
and/CC
came/VBD
to/TO
see/VB
it/PRP
as/IN
a/DT
fake/NN
./.
They/PRP
persuaded/VBD
Mr./NNP
Trotter/NNP
to/TO
take/VB
it/PRP
back/RB
and/CC
,/,
with/IN
the/DT
help/NN
of/IN
the/DT
FBI/NNP
,/,
taped/VBD
their/PRP$
conversation/NN
with/IN
him/PRP
./.
After/IN
his/PRP$
arrest/NN
,/,
the/DT
forger/NN
admitted/VBN
to/TO
faking/VBG
and/CC
selling/VBG
other/JJ
paintings/NNS
up/IN
and/CC
down/IN
the/DT
Eastern/JJ
seaboard/NN
./.
Ms./NNP
Lowenthal/NNP
is/VBZ
executive/JJ
director/NN
of/IN
the/DT
International/NNP
Foundation/NNP
for/IN
Art/NNP
Research/NNP
IFAR/NNP
Ford/NNP
Motor/NNP
Co./NNP
said/VBD
it/PRP
is/VBZ
recalling/VBG
about/RB
3,600/CD
of/IN
its/PRP$
1990-model/JJ
Escorts/NNS
because/IN
the/DT
windshield/NN
adhesive/NN
was/VBD
improperly/RB
applied/VBN
to/TO
some/DT
cars/NNS
./.
Separately/NNP
,/,
Ford/NNP
and/CC
Mazda/NNP
Motor/NNP
Corp./NNP
's/POS
U.S./NNP
sales/NNS
arm/NN
said/VBD
they/PRP
are/VBP
recalling/VBG
about/RB
88,500/CD
1988-model/JJ
Mercury/NNP
Tracers/NNP
and/CC
220,000/CD
1986/CD
,/,
1987/CD
and/CC
1988/CD
model/NN
Mazda/NNP
323s/NNS
equipped/VBN
with/IN
1.6-liter/JJ
fuel-injected/JJ
engines/NNS
to/TO
replace/VB
the/DT
oil/NN
filler/NN
cap/NN
./.
Mazda/NNP
makes/VBZ
the/DT
Tracer/NNP
for/IN
Ford/NNP
./.
As/IN
a/DT
result/NN
of/IN
the/DT
adhesive/JJ
problem/NN
on/IN
the/DT
Ford/NNP
Escort/NNP
subcompacts/NNS
,/,
windshields/NNS
may/MD
easily/RB
separate/VB
from/IN
the/DT
car/NN
during/IN
frontal/JJ
impact/NN
,/,
the/DT
U.S./NNP
auto/NN
maker/NN
said/VBD
./.
When/WRB
properly/RB
applied/VBN
,/,
the/DT
adhesive/NN
is/VBZ
designed/VBN
to/TO
retain/VB
the/DT
windshield/NN
in/IN
place/NN
in/IN
a/DT
crash/JJ
test/NN
at/IN
30/CD
miles/NNS
per/IN
hour/NN
./.
A/DT
Ford/NNP
spokesman/NN
said/VBD
the/DT
Dearborn/NNP
,/,
Mich./NNP
,/,
auto/NN
maker/NN
is/VBZ
n't/RB
aware/JJ
of/IN
any/DT
injuries/NNS
caused/VBN
by/IN
the/DT
windshield/NN
problem/NN
./.
Ford/NNP
said/VBD
owners/NNS
should/MD
return/VB
the/DT
cars/NNS
to/TO
dealers/NNS
so/IN
the/DT
windshields/NNS
can/MD
be/VB
removed/VBN
and/CC
securely/RB
reinstalled/VBN
./.
Mazda/NNP
and/CC
Ford/NNP
said/VBD
a/DT
combination/NN
of/IN
limited/JJ
crankcase/NN
ventilation/NN
and/CC
improper/JJ
maintenance/NN
could/MD
cause/VB
engine/NN
oil/NN
in/IN
some/DT
of/IN
the/DT
Mercury/NNP
Tracers/NNP
and/CC
Mazda/NNP
323s/NNS
to/TO
deteriorate/VB
more/RBR
rapidly/RB
than/IN
normal/JJ
,/,
causing/VBG
increased/VBN
engine/NN
noise/NN
or/CC
reduced/VBN
engine/NN
life/NN
./.
They/PRP
said/VBD
the/DT
problems/NNS
are/VBP
n't/RB
safety/NN
related/VBN
./.
Both/DT
companies/NNS
will/MD
replace/VB
the/DT
oil/NN
filler/NN
cap/NN
with/IN
a/DT
ventilated/VBN
oil/NN
filler/NN
cap/NN
./.
Both/DT
also/RB
will/MD
inspect/VB
and/CC
replace/VB
,/,
if/IN
necessary/JJ
,/,
oil/NN
filters/NNS
and/CC
oil/NN
strainers/NNS
,/,
at/IN
no/DT
charge/NN
to/TO
owners/NNS
./.
For/IN
owners/NNS
who/WP
have/VBP
followed/VBN
the/DT
recommended/VBN
oil/NN
maintenance/NN
schedule/NN
,/,
Mazda/NNP
will/MD
extend/VB
to/TO
five/CD
years/NNS
or/CC
60,000/CD
miles/NNS
the/DT
warranty/NN
term/NN
for/IN
engine/NN
damage/NN
due/JJ
to/TO
abnormal/JJ
engine/NN
oil/NN
deterioration/NN
./.
The/DT
normal/JJ
term/NN
for/IN
the/DT
1986/CD
and/CC
1987/CD
model/NN
323/CD
is/VBZ
two/CD
years/NNS
or/CC
24,000/CD
miles/NNS
;/:
the/DT
term/NN
for/IN
the/DT
1988/CD
323/CD
is/VBZ
three/CD
years/NNS
or/CC
50,000/CD
miles/NNS
./.
Ford/NNP
said/VBD
the/DT
term/NN
on/IN
its/PRP$
warranty/NN
is/VBZ
already/RB
six/CD
years/NNS
or/CC
60,000/CD
miles/NNS
./.
Separately/NNP
,/,
Ford/NNP
said/VBD
it/PRP
will/MD
offer/VB
$/$
750/CD
cash/NN
rebates/NNS
to/TO
buyers/NNS
of/IN
its/PRP$
1990-model/JJ
Ford/NNP
Bronco/NNP
sport/NN
utility/NN
vehicle/NN
./.
It/PRP
said/VBD
it/PRP
will/MD
also/RB
offer/VB
buyers/NNS
the/DT
option/NN
of/IN
financing/NN
as/RB
low/JJ
as/IN
6.9/CD
%/NN
on/IN
24-month/JJ
loans/NNS
./.
Ford/NNP
also/RB
offered/VBD
the/DT
low/JJ
financing/NN
rate/NN
option/NN
on/IN
1989-model/JJ
Broncos/NNS
,/,
which/WDT
previously/RB
carried/VBD
a/DT
$/$
750/CD
cash/NN
discount/NN
./.
Ford/NNP
said/VBD
the/DT
new/JJ
offer/NN
will/MD
begin/VB
Saturday/NNP
and/CC
run/VB
indefinitely/RB
./.
The/DT
Supreme/NNP
Court/NNP
agreed/VBD
to/TO
decide/VB
whether/IN
the/DT
federal/JJ
Pension/NNP
Benefit/NNP
Guaranty/NNP
Corp./NNP
may/MD
require/VB
LTV/NNP
Corp./NNP
to/TO
reassume/VB
funding/NN
responsibility/NN
for/IN
a/DT
$/$
2.3/CD
billion/CD
shortfall/NN
in/IN
the/DT
company/NN
's/POS
pension/NN
plans/NNS
./.
The/DT
high/JJ
court/NN
's/POS
decision/NN
,/,
expected/VBN
next/JJ
spring/NN
,/,
may/MD
affect/VB
the/DT
stability/NN
of/IN
many/JJ
large/JJ
corporate/JJ
pension/NN
plans/NNS
that/WDT
have/VBP
relied/VBN
on/IN
the/DT
availability/NN
of/IN
pension/NN
insurance/NN
provided/VBN
by/IN
the/DT
federal/JJ
pension/NN
regulatory/JJ
and/CC
insurance/NN
agency/NN
./.
The/DT
agency/NN
,/,
which/WDT
is/VBZ
funded/VBN
through/IN
insurance/NN
premiums/NNS
from/IN
employers/NNS
,/,
insures/VBZ
pension/NN
benefits/NNS
for/IN
some/DT
30/CD
million/CD
private-sector/JJ
workers/NNS
who/WP
take/VBP
part/NN
in/IN
single-employer/JJ
pension/NN
plans/NNS
./.
It/PRP
recently/RB
reported/VBD
assets/NNS
of/IN
$/$
2.4/CD
billion/CD
and/CC
liabilities/NNS
of/IN
$/$
4/CD
billion/CD
./.
In/IN
its/PRP$
appeal/NN
to/TO
the/DT
high/JJ
court/NN
,/,
the/DT
agency/NN
said/VBD
the/DT
federal/JJ
appeals/NNS
court/NN
ruling/NN
,/,
which/WDT
favored/VBD
LTV/NNP
,/,
threatened/VBD
to/TO
transform/VB
the/DT
agency/NN
from/IN
an/DT
insurer/NN
of/IN
troubled/VBN
pension/NN
plans/NNS
into/IN
an/DT
``/``
open-ended/JJ
source/NN
of/IN
industry/NN
bailouts/NNS
./.
''/''
The/DT
ruling/NN
also/RB
may/MD
determine/VB
how/WRB
quickly/RB
LTV/NNP
is/VBZ
able/JJ
to/TO
complete/VB
its/PRP$
Chapter/NNP
11/CD
reorganization/NN
./.
LTV/NNP
filed/VBD
for/IN
protection/NN
under/IN
Chapter/NNP
11/CD
in/IN
federal/JJ
bankruptcy/NN
court/NN
in/IN
1986/CD
./.
The/DT
filing/NN
was/VBD
partly/RB
the/DT
result/NN
of/IN
the/DT
$/$
2.3/CD
billion/CD
shortfall/NN
in/IN
LTV/NNP
's/POS
three/CD
pension/NN
plans/NNS
operated/VBN
for/IN
its/PRP$
LTV/NNP
Steel/NNP
Co./NNP
subsidiary/NN
's/POS
employees/NNS
./.
In/IN
January/NNP
1987/CD
,/,
as/IN
LTV/NNP
Steel/NNP
continued/VBD
operating/VBG
while/NN
under/IN
reorganization/NN
,/,
the/DT
agency/NN
terminated/VBD
the/DT
three/CD
LTV/NNP
pension/NN
plans/NNS
to/TO
keep/VB
its/PRP$
insurance/NN
liability/NN
from/IN
increasing/VBG
./.
Termination/NN
means/VBZ
that/IN
the/DT
agency/NN
's/POS
insurance/NN
assumes/VBZ
the/DT
liabilities/NNS
and/CC
pays/VBZ
the/DT
pension/NN
benefits/NNS
already/RB
owed/VBN
under/IN
the/DT
plans/NNS
,/,
but/CC
workers/NNS
do/VBP
n't/RB
accrue/VB
new/JJ
benefits/NNS
./.
A/DT
few/JJ
months/NNS
later/RB
,/,
under/IN
pressure/NN
from/IN
the/DT
United/NNP
Steelworkers/NNP
of/IN
America/NNP
,/,
LTV/NNP
instituted/VBD
a/DT
new/JJ
program/NN
to/TO
provide/VB
retirement/NN
benefits/NNS
similar/JJ
to/TO
those/DT
in/IN
the/DT
terminated/VBN
plans/NNS
./.
Because/IN
the/DT
federal/JJ
pension/NN
agency/NN
had/VBD
taken/VBN
over/RP
the/DT
old/JJ
plans/NNS
,/,
LTV/NNP
would/MD
be/VB
responsible/JJ
only/RB
for/IN
benefits/NNS
paid/VBN
under/IN
the/DT
new/JJ
pension/NN
plans/NNS
./.
But/CC
the/DT
agency/NN
viewed/VBD
the/DT
creation/NN
of/IN
the/DT
new/JJ
plans/NNS
as/IN
an/DT
abuse/NN
of/IN
federal/JJ
pension/NN
law/NN
and/CC
an/DT
attempt/NN
to/TO
transfer/VB
the/DT
liability/NN
of/IN
the/DT
$/$
2.3/CD
billion/CD
shortfall/NN
from/IN
LTV/NNP
to/TO
federal/JJ
insurance/NN
./.
The/DT
agency/NN
also/RB
concluded/VBD
that/IN
LTV/NNP
's/POS
financial/JJ
status/NN
had/VBD
improved/VBN
while/IN
it/PRP
was/VBD
under/IN
reorganization/NN
./.
In/IN
September/NNP
1987/CD
,/,
it/PRP
ordered/VBD
LTV/NNP
to/TO
reassume/VB
liability/NN
and/CC
funding/VBG
for/IN
the/DT
three/CD
original/JJ
plans/NNS
./.
LTV/NNP
challenged/VBD
the/DT
order/NN
,/,
and/CC
a/DT
federal/JJ
district/NN
court/NN
in/IN
New/NNP
York/NNP
in/IN
June/NNP
1988/CD
ruled/VBD
that/IN
the/DT
agency/NN
improperly/RB
ordered/VBD
LTV/NNP
to/TO
reassume/VB
responsibility/NN
for/IN
the/DT
plans/NNS
./.
In/IN
May/NNP
,/,
a/DT
federal/JJ
appeals/NNS
court/NN
in/IN
New/NNP
York/NNP
agreed/VBD
that/IN
the/DT
agency/NN
acted/VBD
unlawfully/RB
./.
The/DT
appeals/NNS
court/NN
said/VBD
there/EX
was/VBD
no/DT
evidence/NN
that/IN
Congress/NNP
intended/VBD
to/TO
allow/VB
the/DT
pension/NN
agency/NN
to/TO
consider/VB
a/DT
company/NN
's/POS
creation/NN
of/IN
new/JJ
benefit/NN
plans/NNS
as/IN
a/DT
basis/NN
for/IN
ordering/VBG
that/DT
company/NN
to/TO
reassume/VB
liability/NN
for/IN
old/JJ
plans/NNS
./.
The/DT
appeals/NNS
court/NN
also/RB
said/VBD
the/DT
agency/NN
had/VBD
to/TO
consider/VB
a/DT
company/NN
's/POS
long-term/JJ
ability/NN
to/TO
fund/VB
pension/NN
plans/NNS
,/,
not/RB
just/RB
short-term/JJ
improved/VBN
financial/JJ
status/NN
./.
In/IN
Dallas/NNP
,/,
LTV/NNP
said/VBD
that/IN
it/PRP
was/VBD
disappointed/VBN
that/IN
the/DT
court/NN
agreed/VBD
to/TO
hear/VB
the/DT
case/NN
because/IN
it/PRP
believes/VBZ
the/DT
move/NN
will/MD
further/RBR
delay/VB
its/PRP$
Chapter/NNP
11/CD
proceedings/NNS
./.
The/DT
company/NN
has/VBZ
n't/RB
been/VBN
able/JJ
to/TO
come/VB
up/RP
with/IN
a/DT
reorganization/NN
plan/NN
,/,
in/IN
part/NN
,/,
because/IN
of/IN
the/DT
sizable/JJ
disagreement/NN
with/IN
the/DT
pension/NN
agency/NN
./.
But/CC
LTV/NNP
,/,
a/DT
steel/NN
,/,
aerospace/NN
and/CC
energy/NN
concern/NN
,/,
said/VBD
it/PRP
is/VBZ
confident/JJ
that/IN
the/DT
Supreme/NNP
Court/NNP
will/MD
uphold/VB
the/DT
lower-court/NN
decisions/NNS
and/CC
said/VBD
it/PRP
expects/VBZ
to/TO
continue/VB
discussions/NNS
with/IN
the/DT
agency/NN
about/IN
a/DT
settlement/NN
while/IN
the/DT
case/NN
is/VBZ
being/VBG
reviewed/VBN
./.
Pension/NNP
Benefit/NNP
Guaranty/NNP
Corp./NNP
vs./IN
LTV/NNP
Corp/NNP
./.
)/)
The/DT
commercial/NN
was/VBD
absolutely/RB
silent/JJ
./.
Breaking/VBG
into/IN
the/DT
raucous/JJ
Chicago/NNP
Bears-Cleveland/NNP
Browns/NNP
match/NN
during/IN
last/JJ
week/NN
's/POS
Monday/NNP
night/NN
football/NN
game/NN
,/,
it/PRP
was/VBD
nothing/NN
but/CC
simple/NN
block/NN
letters/NNS
superimposed/VBN
on/IN
the/DT
TV/NN
screen/NN
./.
``/``
Due/JJ
to/TO
the/DT
earthquake/NN
in/IN
San/NNP
Francisco/NNP
,/,
Nissan/NNP
is/VBZ
donating/VBG
its/PRP$
commercial/JJ
air/NN
time/NN
to/TO
broadcast/VB
American/NNP
Red/NNP
Cross/NNP
Emergency/NNP
Relief/NNP
messages/NNS
./.
Please/VB
contribute/VB
what/WP
you/PRP
can/MD
,/,
''/''
the/DT
ad/NN
said/VBD
./.
The/DT
Nissan/NNP
logo/NN
flashed/VBD
on/IN
the/DT
screen/NN
for/IN
a/DT
moment/NN
,/,
and/CC
then/RB
came/VBD
a/DT
taped/VBN
plea/NN
for/IN
donations/NNS
from/IN
former/JJ
President/NNP
Reagan/NNP
--/:
followed/VBN
by/IN
the/DT
silent/JJ
print/NN
telling/VBG
viewers/NNS
where/WRB
to/TO
call/VB
./.
Within/IN
two/CD
hours/NNS
,/,
viewers/NNS
pledged/VBN
over/IN
$/$
400,000/CD
,/,
according/VBG
to/TO
a/DT
Red/NNP
Cross/NNP
executive/NN
./.
Call/VB
it/PRP
disaster/NN
marketing/NN
./.
Nissan/NNP
Motor/NNP
is/VBZ
just/RB
one/CD
of/IN
a/DT
slew/NN
of/IN
advertisers/NNS
that/WDT
have/VBP
hitched/VBN
their/PRP$
ads/NNS
to/TO
the/DT
devastating/JJ
San/NNP
Francisco/NNP
quake/NN
and/CC
Hurricane/NNP
Hugo/NNP
./.
Sometimes/RB
,/,
the/DT
ads/NNS
attempt/VB
to/TO
raise/VB
money/NN
;/:
always/RB
,/,
they/PRP
try/VBP
to/TO
boost/VB
good/JJ
will/NN
./.
By/IN
advertising/VBG
disaster/NN
relief/NN
,/,
these/DT
companies/NNS
are/VBP
hoping/VBG
to/TO
don/VB
a/DT
white/JJ
hat/NN
and/CC
come/VBN
out/RP
a/DT
hero/NN
./.
But/CC
the/DT
strategy/NN
can/MD
backfire/VB
;/:
if/IN
the/DT
ads/NNS
appear/VBP
too/RB
self-serving/JJ
,/,
the/DT
companies/NNS
may/MD
end/VB
up/RP
looking/VBG
like/IN
rank/NN
opportunists/NNS
instead/RB
of/IN
good/JJ
Samaritans/NNS
./.
That/DT
has/VBZ
n't/RB
deterred/VBD
plenty/JJ
of/IN
companies/NNS
./.
Along/IN
with/IN
Nissan/NNP
,/,
Grand/NNP
Metropolitan/NNP
PLC/NNP
's/POS
Burger/NNP
King/NNP
and/CC
New/NNP
York/NNP
Life/NNP
Insurance/NNP
have/VBP
tied/VBN
ads/NNS
to/TO
Red/NNP
Cross/NNP
donations/NNS
./.
Other/JJ
ads/NNS
do/VBP
n't/RB
bother/VB
with/IN
the/DT
fundraising/NN
;/:
a/DT
touching/JJ
,/,
if/IN
self-congratulatory/JJ
,/,
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
ad/NN
that/WDT
aired/VBD
Sunday/NNP
intermixed/VBD
footage/NN
of/IN
the/DT
devastation/NN
in/IN
San/NNP
Francisco/NNP
and/CC
Charleston/NNP
,/,
S.C./NNP
,/,
with/IN
interviews/NNS
of/IN
people/NNS
recounting/VBG
how/WRB
AT&T/NNP
helped/VBD
./.
At/IN
Nissan/NNP
,/,
``/``
we/PRP
felt/VBD
we/PRP
wanted/VBD
to/TO
do/VB
something/NN
to/TO
help/VB
them/PRP
gather/VB
money/NN
,/,
and/CC
we/PRP
had/VBD
this/DT
airtime/NN
on/IN
Monday/NNP
Night/NNP
Football/NNP
,/,
''/''
explains/VBZ
Brooke/NNP
Mitzel/NNP
,/,
a/DT
Nissan/NNP
advertising/VBG
creative/JJ
manager/NN
./.
``/``
What/WP
did/VBD
we/PRP
get/VB
out/IN
of/IN
it/PRP
?/.
We/PRP
got/VBD
some/DT
exposure/NN
.../:
and/CC
pretty/RB
much/JJ
good/JJ
will/NN
./.
''/''
The/DT
ads/NNS
are/VBP
just/RB
the/DT
latest/JJS
evidence/NN
of/IN
how/WRB
television/NN
advertising/NN
is/VBZ
getting/VBG
faster/RBR
on/IN
the/DT
draw/NN
./.
While/IN
TV/NN
commercials/NNS
typically/RB
take/VBP
weeks/NNS
to/TO
produce/VB
,/,
advertisers/NNS
in/IN
the/DT
past/JJ
couple/NN
of/IN
years/NNS
have/VBP
learned/VBN
to/TO
turn/VB
on/IN
a/DT
dime/NN
,/,
to/TO
crash/VB
out/RP
ads/NNS
in/IN
days/NNS
or/CC
even/JJ
hours/NNS
./.
The/DT
big/JJ
brokerage/NN
houses/NNS
learned/VBD
the/DT
art/NN
of/IN
the/DT
instant/JJ
commercial/NN
after/IN
the/DT
1987/CD
crash/NN
,/,
when/WRB
they/PRP
turned/VBD
out/RP
reassuring/JJ
ads/NNS
inviting/VBG
investors/NNS
right/RB
back/RB
into/IN
the/DT
stock/NN
market/NN
./.
They/PRP
trotted/VBD
out/RB
another/DT
crop/NN
of/IN
instant/JJ
commercials/NNS
after/IN
the/DT
sudden/JJ
market/NN
dip/NN
a/DT
few/JJ
weeks/NNS
ago/RB
./.
Nissan/NNP
created/VBD
its/PRP$
quake/NN
ad/NN
in/IN
a/DT
weekend/NN
./.
But/CC
as/IN
advertisers/NNS
latch/VBP
onto/IN
disasters/NNS
with/IN
increasing/JJ
frequency/NN
,/,
they/PRP
risk/VBP
hurting/VBG
themselves/PRP
as/RB
much/RB
as/IN
helping/VBG
the/DT
cause/NN
./.
They/PRP
chance/VBP
alienating/VBG
the/DT
customers/NNS
they/PRP
hope/VBP
to/TO
woo/VB
by/IN
looking/VBG
like/IN
opportunistic/JJ
sharks/NNS
./.
``/``
People/NNS
see/VBP
extra/JJ
messages/NNS
in/IN
advertising/NN
,/,
and/CC
if/IN
a/DT
manufacturer/NN
is/VBZ
clearly/RB
trying/VBG
to/TO
get/VB
something/NN
out/IN
of/IN
it/PRP
.../:
if/IN
it/PRP
's/VBZ
too/RB
transparent/JJ
.../:
then/IN
consumers/NNS
will/MD
see/VB
through/IN
that/DT
,/,
''/''
warns/VBZ
John/NNP
Philip/NNP
Jones/NNP
,/,
chairman/NN
of/IN
the/DT
advertising/NN
department/NN
at/IN
the/DT
Newhouse/NNP
School/NNP
of/IN
Public/NNP
Communications/NNP
at/IN
Syracuse/NNP
University/NNP
./.
``/``
It/PRP
can/MD
backfire/VB
because/IN
companies/NNS
can/MD
step/VB
across/IN
the/DT
line/NN
and/CC
go/VB
too/RB
far/RB
,/,
be/VB
too/RB
pushy/JJ
,/,
''/''
agrees/VBZ
Gary/NNP
Stibel/NNP
,/,
a/DT
principal/NN
with/IN
New/NNP
England/NNP
Consulting/NNP
Group/NNP
,/,
Westport/NNP
,/,
Conn/NNP
./.
``/``
The/DT
ultimate/JJ
form/NN
of/IN
charity/NN
is/VBZ
when/WRB
you/PRP
do/VBP
n't/RB
tell/VB
anyone/NN
./.
''/''
Still/RB
,/,
he/PRP
says/VBZ
that/IN
only/RB
a/DT
few/JJ
of/IN
the/DT
quake-related/JJ
campaigns/NNS
have/VBP
been/VBN
``/``
tasteless/JJ
''/''
and/CC
that/IN
``/``
the/DT
majority/NN
have/VBP
been/VBN
truly/RB
beneficial/JJ
to/TO
the/DT
people/NNS
who/WP
need/VBP
the/DT
help/NN
./.
We/PRP
do/VBP
n't/RB
consider/VB
that/DT
ambulance/NN
chasing/NN
./.
''/''
The/DT
companies/NNS
running/VBG
the/DT
disaster/NN
ads/NNS
certainly/RB
do/VBP
n't/RB
see/VB
themselves/PRP
as/IN
ambulance/NN
chasers/NNS
,/,
either/RB
./.
Burger/NNP
King/NNP
's/POS
chief/JJ
executive/NN
officer/NN
,/,
Barry/NNP
Gibbons/NNP
,/,
stars/VBZ
in/IN
ads/NNS
saying/VBG
that/IN
the/DT
fast-food/NN
chain/NN
will/MD
donate/VB
25/CD
cents/NNS
to/TO
the/DT
Red/NNP
Cross/NNP
for/IN
every/DT
purchase/NN
of/IN
a/DT
BK/NNP
Doubles/NNP
hamburger/NN
./.
The/DT
campaign/NN
,/,
which/WDT
started/VBD
last/JJ
week/NN
and/CC
runs/VBZ
through/IN
Nov./NNP
23/CD
,/,
with/IN
funds/NNS
earmarked/VBN
for/IN
both/DT
the/DT
quake/NN
and/CC
Hugo/NNP
,/,
``/``
was/VBD
Barry/NNP
's/POS
idea/NN
,/,
''/''
a/DT
spokeswoman/NN
says/VBZ
./.
``/``
Barry/NNP
felt/VBD
very/RB
committed/VBN
./.
He/PRP
felt/VBD
we/PRP
should/MD
be/VB
giving/VBG
something/NN
back/RB
./.
''/''
While/IN
the/DT
campaign/NN
was/VBD
Mr./NNP
Gibbons/NNP
's/POS
idea/NN
,/,
however/RB
,/,
he/PRP
wo/MD
n't/RB
be/VB
paying/VBG
for/IN
it/PRP
:/:
The/DT
donations/NNS
will/MD
come/VB
out/IN
of/IN
the/DT
chain/NN
's/POS
national/JJ
advertising/NN
fund/NN
,/,
which/WDT
is/VBZ
financed/VBN
by/IN
the/DT
franchisees/NNS
./.
And/CC
by/IN
basing/VBG
donations/NNS
on/IN
BK/NNP
Doubles/NNP
,/,
a/DT
new/JJ
double-hamburger/NN
line/NN
the/DT
fast-food/NN
chain/NN
is/VBZ
trying/VBG
to/TO
push/VB
,/,
Burger/NNP
King/NNP
works/VBZ
a/DT
sales/NNS
pitch/NN
into/IN
its/PRP$
public-service/JJ
message/NN
./.
Toyota/NNP
's/POS
upscale/JJ
Lexus/NNP
division/NN
,/,
a/DT
sponsor/NN
of/IN
the/DT
World/NNP
Series/NNP
,/,
also/RB
put/VBD
in/IN
a/DT
plug/NN
for/IN
Red/NNP
Cross/NNP
donations/NNS
in/IN
a/DT
World/NNP
Series/NNP
game/NN
it/PRP
sponsored/VBD
./.
``/``
The/DT
World/NNP
Series/NNP
is/VBZ
brought/VBN
to/TO
you/PRP
by/IN
Lexus/NNP
,/,
who/WP
urges/VBZ
you/PRP
to/TO
help/VB
relieve/VB
the/DT
suffering/NN
caused/VBN
by/IN
the/DT
recent/JJ
earthquake/NN
.../:
,/,
''/''
the/DT
game/NN
announcer/NN
said/VBD
./.
And/CC
New/NNP
York/NNP
Life/NNP
made/VBD
a/DT
plea/NN
for/IN
Red/NNP
Cross/NNP
donations/NNS
in/IN
newspaper/NN
ads/NNS
in/IN
the/DT
San/NNP
Francisco/NNP
area/NN
,/,
latching/VBG
onto/IN
the/DT
coattails/NNS
of/IN
the/DT
Red/NNP
Cross/NNP
's/POS
impeccable/JJ
reputation/NN
:/:
``/``
The/DT
Red/NNP
Cross/NNP
has/VBZ
been/VBN
helping/VBG
people/NNS
for/IN
125/CD
years/NNS
./.
New/NNP
York/NNP
Life/NNP
has/VBZ
been/VBN
doing/VBG
the/DT
same/JJ
for/IN
over/IN
140/CD
years/NNS
./.
''/''
Nancy/NNP
Craig/NNP
,/,
advertising/NN
manager/NN
for/IN
the/DT
Red/NNP
Cross/NNP
,/,
readily/RB
admits/VBZ
``/``
they/PRP
're/VBP
piggybacking/VBG
on/IN
our/PRP$
reputation/NN
./.
''/''
But/CC
she/PRP
has/VBZ
no/DT
problem/NN
with/IN
that/DT
,/,
she/PRP
says/VBZ
:/:
``/``
In/IN
the/DT
meanwhile/NN
,/,
they/PRP
're/VBP
helping/VBG
us/PRP
./.
''/''
The/DT
Red/NNP
Cross/NNP
does/VBZ
n't/RB
track/VB
contributions/NNS
raised/VBN
by/IN
the/DT
disaster/NN
ads/NNS
,/,
but/CC
it/PRP
has/VBZ
amassed/VBN
$/$
46.6/CD
million/CD
since/IN
it/PRP
first/RB
launched/VBD
its/PRP$
hurricane/NN
relief/NN
effort/NN
Sept./NNP
23/CD
./.
Ad/NN
Notes/NNS
.../:
./.
NEW/JJ
ACCOUNT/NN
:/:
Northrup/NNP
King/NNP
Co./NNP
,/,
Golden/NNP
Valley/NNP
,/,
Minn./NNP
,/,
awarded/VBD
its/PRP$
$/$
4/CD
million/CD
field-crop-seeds/JJ
account/NN
to/TO
Creswell/NNP
,/,
Munsell/NNP
,/,
Fultz/NNP
&/CC
Zirbel/NNP
,/,
a/DT
Cedar/NNP
Rapids/NNP
,/,
Iowa/NNP
,/,
division/NN
of/IN
Young/NNP
&/CC
Rubicam/NNP
./.
The/DT
account/NN
had/VBD
previously/RB
been/VBN
handled/VBN
by/IN
Saatchi/NNP
&/CC
Saatchi/NNP
Wegener/NNP
,/,
New/NNP
York/NNP
./.
TV/NN
GUIDE/NNP
:/:
Wieden/NNP
&/CC
Kennedy/NNP
,/,
Portland/NNP
,/,
Ore./NNP
,/,
was/VBD
named/VBN
to/TO
handle/VB
the/DT
News/NNP
Corp./NNP
publication/NN
's/POS
$/$
1/CD
million/CD
to/TO
$/$
2/CD
million/CD
trade-ad/NN
account/NN
./.
N/NNP
W/NNP
Ayer/NNP
,/,
the/DT
New/NNP
York/NNP
agency/NN
that/WDT
had/VBD
handled/VBN
the/DT
account/NN
since/IN
1963/CD
,/,
resigned/VBD
the/DT
account/NN
about/RB
two/CD
weeks/NNS
ago/RB
./.
NO/DT
ALCOHOL/NNP
:/:
Miller/NNP
Brewing/NNP
Co./NNP
will/MD
introduce/VB
its/PRP$
first/JJ
non-alcoholic/JJ
beer/NN
Jan./NNP
1/CD
./.
The/DT
brew/NN
,/,
called/VBN
Miller/NNP
Sharp/NNP
's/POS
,/,
will/MD
be/VB
supported/VBN
by/IN
ads/NNS
developed/VBN
by/IN
Frankenberry/NNP
,/,
Laughlin/NNP
&/CC
Constable/NNP
,/,
Milwaukee/NNP
./.
RADIO/NN
:/:
Viacom/NNP
Broadcasting/NNP
Inc./NNP
definitively/RB
agreed/VBD
to/TO
acquire/VB
KOFY/NNP
AM/VBP
KOFY-FM/NNP
in/IN
San/NNP
Francisco/NNP
for/IN
about/RB
$/$
19.5/CD
million/CD
from/IN
Pacific/NNP
FM/NNP
Inc/NNP
./.
The/DT
Supreme/NNP
Court/NNP
let/VBD
stand/VB
a/DT
New/NNP
York/NNP
court/NN
's/POS
ruling/NN
that/IN
the/DT
manufacturers/NNS
of/IN
a/DT
drug/NN
once/RB
used/VBN
to/TO
prevent/VB
miscarriages/NNS
must/MD
share/VB
liability/NN
for/IN
injuries/NNS
or/CC
deaths/NNS
when/WRB
the/DT
maker/NN
of/IN
an/DT
individual/JJ
dose/NN
is/VBZ
unknown/JJ
./.
The/DT
high/JJ
court/NN
's/POS
action/NN
,/,
refusing/NN
to/TO
hear/VB
appeals/NNS
by/IN
several/JJ
drug/NN
companies/NNS
,/,
is/VBZ
likely/JJ
to/TO
have/VB
a/DT
significant/JJ
impact/NN
at/IN
several/JJ
levels/NNS
./.
The/DT
most/RBS
immediate/JJ
effect/NN
is/VBZ
in/IN
New/NNP
York/NNP
,/,
where/WRB
former/JJ
manufacturers/NNS
of/IN
the/DT
anti-miscarriage/JJ
drug/NN
DES/NNP
--/:
the/DT
synthetic/JJ
female/NN
hormone/NN
diethylstilbestrol/NN
--/:
face/VBP
the/DT
prospect/NN
of/IN
shared/VBN
liability/NN
for/IN
damages/NNS
in/IN
many/JJ
of/IN
the/DT
700/CD
to/TO
1,000/CD
DES/NNP
lawsuits/NNS
pending/VBG
in/IN
that/DT
state/NN
./.
The/DT
lawsuits/NNS
stemmed/VBD
from/IN
the/DT
development/NN
of/IN
cancer/NN
and/CC
other/JJ
problems/NNS
in/IN
the/DT
daughters/NNS
of/IN
women/NNS
who/WP
took/VBD
the/DT
drug/NN
./.
On/IN
a/DT
broader/JJR
scale/NN
,/,
the/DT
ruling/NN
could/MD
encourage/VB
other/JJ
states/NNS
'/POS
courts/NNS
to/TO
adopt/VB
the/DT
logic/NN
of/IN
the/DT
New/NNP
York/NNP
court/NN
,/,
not/RB
only/RB
in/IN
DES/NNP
cases/NNS
but/CC
in/IN
other/JJ
product-related/JJ
lawsuits/NNS
,/,
as/RB
well/RB
./.
The/DT
New/NNP
York/NNP
Court/NNP
of/IN
Appeals/NNP
ruling/NN
parallels/VBZ
a/DT
1980/CD
decision/NN
by/IN
the/DT
California/NNP
Supreme/NNP
Court/NNP
requiring/VBG
shared/VBN
liability/NN
among/IN
manufacturers/NNS
for/IN
injuries/NNS
when/WRB
it/PRP
ca/MD
n't/RB
be/VB
determined/VBN
which/WDT
company/NN
is/VBZ
at/IN
fault/NN
./.
Paul/NNP
Rheingold/NNP
,/,
a/DT
New/NNP
York/NNP
lawyer/NN
who/WP
represents/VBZ
DES/NNP
victims/NNS
,/,
said/VBD
that/IN
before/RB
the/DT
New/NNP
York/NNP
ruling/NN
,/,
only/RB
the/DT
states/NNS
of/IN
Washington/NNP
and/CC
Wisconsin/NNP
had/VBD
followed/VBN
the/DT
California/NNP
decision/NN
./.
Now/RB
that/IN
the/DT
New/NNP
York/NNP
decision/NN
has/VBZ
been/VBN
left/VBN
intact/JJ
,/,
other/JJ
states/NNS
may/MD
follow/VB
suit/NN
./.
``/``
Generally/RB
,/,
when/WRB
New/NNP
York/NNP
and/CC
California/NNP
go/VBP
one/CD
way/NN
,/,
it/PRP
has/VBZ
a/DT
tremendous/JJ
influence/NN
on/IN
other/JJ
states/NNS
,/,
especially/RB
small/JJ
ones/NNS
,/,
''/''
said/VBD
Mr./NNP
Rheingold/NNP
./.
The/DT
high/JJ
court/NN
refused/VBD
to/TO
hear/VB
appeals/NNS
by/IN
Rexall/NNP
Drug/NNP
Co./NNP
,/,
which/WDT
went/VBD
out/IN
of/IN
business/NN
in/IN
1987/CD
and/CC
was/VBD
taken/VBN
over/RP
by/IN
RXDC/NNP
Liquidating/NNP
Trust/NNP
;/:
E.R./NNP
Squibb/NNP
&/CC
Sons/NNP
Inc./NNP
,/,
a/DT
unit/NN
of/IN
Squibb/NNP
Corp./NNP
;/:
and/CC
Eli/NNP
Lilly/NNP
&/CC
Co/NNP
./.
The/DT
appeals/NNS
involved/VBD
DES/NNP
,/,
which/WDT
was/VBD
approved/VBN
by/IN
the/DT
Food/NNP
and/CC
Drug/NNP
Administration/NNP
for/IN
use/NN
from/IN
the/DT
1940s/CD
until/IN
1971/CD
to/TO
prevent/VB
miscarriages/NNS
during/IN
pregnancy/NN
./.
In/IN
1971/CD
,/,
the/DT
FDA/NNP
banned/VBD
the/DT
use/NN
of/IN
DES/NNP
after/IN
studies/NNS
linked/VBD
it/PRP
to/TO
cancer/NN
and/CC
other/JJ
problems/NNS
in/IN
daughters/NNS
of/IN
women/NNS
who/WP
took/VBD
the/DT
drug/NN
./.
Lawsuits/NN
over/IN
the/DT
harm/NN
caused/VBN
by/IN
DES/NNP
have/VBP
flooded/VBN
federal/JJ
and/CC
state/NN
courts/NNS
in/IN
the/DT
past/NN
decade/NN
./.
In/IN
many/JJ
cases/NNS
,/,
the/DT
lawsuit/NN
was/VBD
filed/VBN
long/RB
after/RB
the/DT
drug/NN
was/VBD
used/VBN
--/:
the/DT
cancer/NN
in/IN
the/DT
daughters/NNS
was/VBD
typically/RB
not/RB
detected/VBN
for/IN
years/NNS
--/:
and/CC
there/EX
is/VBZ
no/DT
way/NN
to/TO
prove/VB
which/WDT
of/IN
several/JJ
companies/NNS
manufactured/VBD
the/DT
doses/NNS
consumed/VBN
by/IN
certain/JJ
women/NNS
./.
Under/IN
traditional/JJ
legal/JJ
theories/NNS
,/,
inability/NN
to/TO
prove/VB
which/WDT
company/NN
manufactured/VBD
a/DT
drug/NN
that/WDT
caused/VBD
an/DT
injury/NN
or/CC
death/NN
would/MD
lead/VB
to/TO
the/DT
lawsuit/NN
being/VBG
dismissed/VBN
./.
But/CC
in/IN
its/PRP$
ruling/NN
last/JJ
April/NNP
,/,
the/DT
New/NNP
York/NNP
court/NN
said/VBD
that/IN
all/DT
producers/NNS
of/IN
the/DT
anti-miscarriage/JJ
drug/NN
should/MD
share/VB
liability/NN
when/WRB
the/DT
manufacturer/NN
of/IN
a/DT
specific/NN
dose/NN
ca/MD
n't/RB
be/VB
determined/VBN
./.
Each/DT
company/NN
's/POS
share/NN
of/IN
liability/NN
would/MD
be/VB
based/VBN
on/IN
their/PRP$
share/NN
of/IN
the/DT
national/JJ
DES/NNP
market/NN
./.
The/DT
New/NNP
York/NNP
court/NN
also/RB
upheld/VBD
a/DT
state/NN
law/NN
,/,
passed/VBN
in/IN
1986/CD
,/,
extending/VBG
for/IN
one/CD
year/NN
the/DT
statute/NN
of/IN
limitations/NNS
on/IN
filing/NN
DES/NNP
lawsuits/NNS
./.
The/DT
effect/NN
is/VBZ
that/IN
lawsuits/NNS
that/WDT
might/MD
have/VB
been/VBN
barred/VBN
because/IN
they/PRP
were/VBD
filed/VBN
too/RB
late/RB
could/MD
proceed/VB
because/RB
of/IN
the/DT
one-year/JJ
extension/NN
./.
Rexall/NNP
Drug/NNP
Co./NNP
vs./IN
Tigue/NNP
;/:
E.R./NNP
Squibb/NNP
&/CC
Sons/NNP
Inc./NNP
vs./IN
Hymowitz/NNP
,/,
and/CC
Eli/NNP
Lilly/NNP
&/CC
Co./NNP
vs./IN
Hymowitz/NNP
Government/NN
Contractors/NNS
The/DT
high/JJ
court/NN
,/,
leaving/VBG
intact/JJ
a/DT
$/$
4.25/CD
million/CD
damage/NN
award/NN
against/IN
General/NNP
Dynamics/NNP
Corp./NNP
,/,
declined/VBD
to/TO
resolve/VB
questions/NNS
about/IN
a/DT
legal/JJ
defense/NN
against/IN
civil/JJ
lawsuits/NNS
often/RB
used/VBN
by/IN
government/NN
contractors/NNS
./.
Last/JJ
year/NN
,/,
the/DT
Supreme/NNP
Court/NNP
defined/VBD
when/WRB
companies/NNS
,/,
such/JJ
as/IN
military/JJ
contractors/NNS
,/,
may/MD
defend/VB
themselves/PRP
against/IN
lawsuits/NNS
for/IN
deaths/NNS
or/CC
injuries/NNS
by/IN
asserting/VBG
that/IN
they/PRP
were/VBD
simply/RB
following/VBG
specifications/NNS
of/IN
a/DT
federal/JJ
government/NN
contract/NN
./.
In/IN
that/DT
decision/NN
,/,
the/DT
high/JJ
court/NN
said/VBD
a/DT
company/NN
must/MD
prove/VB
that/IN
the/DT
government/NN
approved/VBD
precise/JJ
specifications/NNS
for/IN
the/DT
contract/NN
,/,
that/IN
those/DT
specifications/NNS
were/VBD
met/VBN
and/CC
that/IN
the/DT
government/NN
was/VBD
warned/VBN
of/IN
any/DT
dangers/NNS
in/IN
use/NN
of/IN
the/DT
equipment/NN
./.
But/CC
last/JJ
February/NNP
,/,
a/DT
federal/JJ
appeals/NNS
court/NN
in/IN
New/NNP
Orleans/NNP
upheld/VBD
a/DT
damage/NN
award/NN
against/IN
General/NNP
Dynamics/NNP
,/,
rejecting/VBG
the/DT
company/NN
's/POS
use/NN
of/IN
the/DT
government/NN
contractor/NN
defense/NN
./.
The/DT
appeals/NNS
court/NN
said/VBD
the/DT
defense/NN
is/VBZ
valid/JJ
only/RB
if/IN
federal/JJ
officials/NNS
did/VBD
more/JJR
than/IN
rubber/NN
stamp/VB
a/DT
company/NN
's/POS
design/NN
or/CC
plans/NNS
and/CC
engaged/VBN
in/IN
a/DT
``/``
substantive/JJ
review/NN
and/CC
evaluation/NN
''/''
on/IN
a/DT
par/NN
with/IN
a/DT
policy/NN
decision/NN
./.
General/NNP
Dynamics/NNP
appealed/VBD
to/TO
the/DT
high/JJ
court/NN
,/,
backed/VBN
by/IN
numerous/JJ
business/NN
trade/NN
groups/NNS
,/,
arguing/VBG
that/IN
the/DT
appeals/NNS
court/NN
definition/NN
restricts/VBZ
the/DT
defense/NN
too/RB
severely/RB
./.
General/NNP
Dynamics/NNP
was/VBD
sued/VBN
by/IN
the/DT
families/NNS
of/IN
five/CD
Navy/NNP
divers/NNS
who/WP
were/VBD
killed/VBN
in/IN
1982/CD
after/IN
they/PRP
re-entered/VBD
a/DT
submarine/NN
through/IN
a/DT
diving/JJ
chamber/NN
./.
The/DT
accident/NN
was/VBD
caused/VBN
by/IN
faulty/JJ
operation/NN
of/IN
a/DT
valve/NN
./.
A/DT
federal/JJ
district/NN
court/NN
awarded/VBD
damages/NNS
to/TO
the/DT
families/NNS
and/CC
the/DT
appeals/NNS
court/NN
affirmed/VBD
the/DT
award/NN
./.
General/NNP
Dynamics/NNP
Corp./NNP
vs./IN
Trevino/NNP
Court/NN
in/IN
Brief/NN
In/IN
other/JJ
action/NN
yesterday/NN
,/,
the/DT
high/JJ
court/NN
:/:
--/:
Let/VBD
stand/VB
the/DT
mail/NN
fraud/NN
and/CC
conspiracy/NN
conviction/NN
of/IN
John/NNP
Lavery/NNP
,/,
a/DT
former/JJ
vice/NN
president/NN
of/IN
Beech-Nut/NNP
Nutrition/NNP
Corp./NNP
,/,
a/DT
unit/NN
of/IN
Nestle/NNP
S.A/NNP
./.
The/DT
conviction/NN
stemmed/VBD
from/IN
federal/JJ
charges/NNS
of/IN
consumer/NN
fraud/NN
for/IN
sale/NN
of/IN
phony/JJ
infant/NN
apple/NN
juice/NN
between/IN
1978/CD
and/CC
1983/CD
./.
Lavery/NNP
vs./IN
U.S/NNP
./.
--/:
Left/VBD
intact/JJ
an/DT
award/NN
of/IN
$/$
1.5/CD
million/CD
in/IN
damages/NNS
against/IN
Dow/NNP
Chemical/NNP
Co./NNP
in/IN
the/DT
death/NN
of/IN
an/DT
Oregon/NNP
man/NN
from/IN
exposure/NN
to/TO
Agent/NNP
Orange/NNP
./.
The/DT
award/NN
was/VBD
made/VBN
by/IN
a/DT
federal/JJ
court/NN
to/TO
the/DT
widow/NN
of/IN
a/DT
U.S./NNP
Forest/NNP
Service/NNP
employee/NN
who/WP
contracted/VBD
Hodgkin/NNP
's/POS
disease/NN
after/IN
using/VBG
herbicides/NNS
containing/VBG
Agent/NNP
Orange/NNP
in/IN
a/DT
weed-killing/JJ
program/NN
./.
Dow/NNP
Chemical/NNP
Co./NNP
vs./IN
Greenhill/NNP
)/)
It/PRP
can/MD
be/VB
hoped/VBN
that/IN
Spanish/JJ
Prime/NNP
Minister/NNP
Felipe/NNP
Gonzalez/NNP
will/MD
draw/VB
the/DT
right/JJ
conclusion/NN
from/IN
his/PRP$
narrow/JJ
election/NN
victory/NN
Sunday/NNP
./.
A/DT
strong/JJ
challenge/NN
from/IN
the/DT
far/RB
left/JJ
,/,
the/DT
Communist/JJ
coalition/NN
Izquierda/NNP
Unida/NNP
,/,
failed/VBD
to/TO
topple/VB
him/PRP
./.
He/PRP
should/MD
consider/VB
his/PRP$
victory/NN
a/DT
mandate/NN
to/TO
continue/VB
his/PRP$
growth-oriented/JJ
economic/JJ
reforms/NNS
and/CC
not/RB
a/DT
demand/NN
that/IN
he/PRP
move/VB
further/RBR
left/RB
./.
If/IN
he/PRP
follows/VBZ
the/DT
correct/JJ
path/NN
,/,
he/PRP
may/MD
be/VB
able/JJ
to/TO
look/VB
back/RB
on/IN
this/DT
election/NN
as/IN
the/DT
high-water/JJ
mark/NN
of/IN
far-left/JJ
opposition/NN
./.
The/DT
far/JJ
left/NN
had/VBD
some/DT
good/JJ
issues/NNS
even/RB
if/IN
it/PRP
did/VBD
not/RB
have/VB
good/JJ
programs/NNS
for/IN
dealing/VBG
with/IN
them/PRP
./.
It/PRP
could/MD
point/VB
to/TO
plenty/JJ
of/IN
ailments/NNS
that/IN
the/DT
Spanish/JJ
economic/JJ
rejuvenation/NN
so/RB
far/RB
has/VBZ
failed/VBN
to/TO
cure/VB
./.
Unemployment/NN
still/RB
is/VBZ
officially/RB
recorded/VBN
at/IN
16.5/CD
%/NN
,/,
the/DT
highest/JJS
rate/NN
in/IN
Europe/NNP
,/,
although/IN
actual/JJ
joblessness/NN
may/MD
be/VB
lower/JJR
./.
Housing/NN
is/VBZ
scarce/JJ
and/CC
public/JJ
services/NNS
--/:
the/DT
court/NN
system/NN
,/,
schools/NNS
,/,
mail/NN
service/NN
,/,
telephone/NN
network/NN
and/CC
the/DT
highways/NNS
--/:
are/VBP
in/IN
disgraceful/JJ
condition/NN
./.
Large/JJ
pockets/NNS
of/IN
poverty/NN
still/RB
exist/VBP
./.
The/DT
left/NN
also/RB
is/VBZ
critical/JJ
of/IN
the/DT
style/NN
of/IN
the/DT
Socialist/JJ
government/NN
--/:
a/DT
remarkable/JJ
parallel/NN
to/TO
the/DT
situation/NN
in/IN
Britain/NNP
./.
Mr./NNP
Gonzalez/NNP
and/CC
his/PRP$
colleagues/NNS
,/,
particularly/RB
the/DT
finance/NN
minister/NN
,/,
Carlos/NNP
Solchaga/NNP
,/,
are/VBP
charged/VBN
with/IN
having/VBG
abandoned/VBN
their/PRP$
socialist/JJ
principles/NNS
and/CC
with/IN
having/VBG
become/VBN
arrogant/JJ
elitists/NNS
who/WP
refuse/VBP
even/RB
to/TO
go/VB
on/IN
television/NN
the/DT
state/NN
their/PRP$
accusers/NNS
./.
In/IN
response/NN
to/TO
this/DT
,/,
the/DT
Socialist/JJ
prime/JJ
minister/NN
has/VBZ
simply/RB
cited/VBN
his/PRP$
free-market/NN
accomplishments/NNS
./.
They/PRP
are/VBP
very/RB
considerable/JJ
:/:
Since/IN
1986/CD
,/,
when/WRB
Spain/NNP
joined/VBD
the/DT
European/NNP
Community/NNP
,/,
its/PRP$
gross/JJ
domestic/JJ
product/NN
has/VBZ
grown/VBN
at/IN
an/DT
annual/JJ
average/NN
of/IN
4.6/CD
%/NN
--/:
the/DT
fastest/JJS
in/IN
the/DT
EC/NNP
./.
In/IN
that/DT
time/NN
more/JJR
than/IN
1.2/CD
million/CD
jobs/NNS
have/VBP
been/VBN
created/VBN
and/CC
the/DT
official/JJ
jobless/JJ
rate/NN
has/VBZ
been/VBN
pushed/VBN
below/IN
17/CD
%/NN
from/IN
21/CD
%/NN
./.
A/DT
14/CD
%/NN
inflation/NN
rate/NN
dropped/VBD
below/IN
5/CD
%/NN
./.
Net/JJ
foreign/JJ
investment/NN
through/IN
August/NNP
this/DT
year/NN
has/VBZ
been/VBN
running/VBG
at/IN
a/DT
pace/NN
of/IN
$/$
12.5/CD
billion/CD
,/,
about/RB
double/RB
the/DT
year-earlier/JJ
rate/NN
./.
Mr./NNP
Gonzalez/NNP
also/RB
has/VBZ
split/VBN
with/IN
the/DT
left/NN
in/IN
reaffirming/VBG
Spain/NNP
's/POS
NATO/NNP
commitment/NN
and/CC
in/IN
renewing/VBG
a/DT
defense/NN
treaty/NN
with/IN
the/DT
U.S/NNP
./.
Mr./NNP
Gonzalez/NNP
is/VBZ
not/RB
quite/RB
a/DT
closet/NN
supply-side/NN
revolutionary/NN
,/,
however/RB
./.
He/PRP
did/VBD
not/RB
go/VB
as/RB
far/RB
as/IN
he/PRP
could/MD
have/VB
in/IN
tax/NN
reductions/NNS
;/:
indeed/RB
he/PRP
combined/VBD
them/PRP
with/IN
increases/NNS
in/IN
indirect/JJ
taxes/NNS
./.
Yet/RB
the/DT
best/JJS
the/DT
far-left/NN
could/MD
do/VB
was/VBD
not/RB
enough/JJ
to/TO
deter/VB
the/DT
biggest/JJS
voting/NN
bloc/NN
--/:
nearly/RB
40/CD
%/NN
--/:
from/IN
endorsing/VBG
the/DT
direction/NN
Spain/NNP
is/VBZ
taking/VBG
./.
Now/RB
he/PRP
can/MD
go/VB
further/RB
./.
He/PRP
should/MD
do/VB
more/JJR
to/TO
reduce/VB
tax/NN
rates/NNS
on/IN
wealth/NN
and/CC
income/NN
,/,
in/IN
recognition/NN
of/IN
the/DT
fact/NN
that/IN
those/DT
cuts/NNS
yield/VBP
higher/JJR
,/,
not/RB
lower/JJR
,/,
revenues/NNS
./.
He/PRP
could/MD
do/VB
more/JJR
to/TO
cut/VB
public/JJ
subsidies/NNS
and/CC
transfers/NNS
,/,
thus/RB
making/VBG
funds/NNS
available/JJ
for/IN
public/JJ
services/NNS
starved/VBN
of/IN
money/NN
for/IN
six/CD
years/NNS
./.
The/DT
voters/NNS
delivered/VBD
Mr./NNP
Gonzalez/NNP
a/DT
third/JJ
mandate/NN
for/IN
his/PRP$
successes/NNS
./.
They/PRP
,/,
as/RB
well/RB
as/IN
numerous/JJ
Latin/JJ
American/JJ
and/CC
East/JJ
European/JJ
countries/NNS
that/WDT
hope/VBP
to/TO
adopt/VB
elements/NNS
of/IN
the/DT
Spanish/JJ
model/NN
,/,
are/VBP
supporting/VBG
the/DT
direction/NN
Spain/NNP
is/VBZ
taking/VBG
./.
It/PRP
would/MD
be/VB
sad/JJ
for/IN
Mr./NNP
Gonzalez/NNP
to/TO
abandon/VB
them/PRP
to/TO
appease/VB
his/PRP$
foes/NNS
./.
Monday/NNP
,/,
October/NNP
30/CD
,/,
1989/CD
The/DT
key/JJ
U.S./NNP
and/CC
foreign/JJ
annual/JJ
interest/NN
rates/NNS
below/RB
are/VBP
a/DT
guide/NN
to/TO
general/JJ
levels/NNS
but/CC
do/VBP
n't/RB
always/RB
represent/VB
actual/JJ
transactions/NNS
./.
PRIME/NNP
RATE/NNP
:/:
10/CD
1\/2/CD
%/NN
./.
The/DT
base/NN
rate/NN
on/IN
corporate/JJ
loans/NNS
at/IN
large/JJ
U.S./NNP
money/NN
center/NN
commercial/JJ
banks/NNS
./.
FEDERAL/NNP
FUNDS/NNP
:/:
8/CD
3\/4/CD
%/NN
high/JJ
,/,
8/CD
11\/16/CD
%/NN
low/JJ
,/,
8/CD
3\/4/CD
%/NN
near/IN
closing/NN
bid/NN
,/,
8/CD
3\/4/CD
%/NN
offered/VBN
./.
Reserves/NNS
traded/VBD
among/IN
commercial/JJ
banks/NNS
for/IN
overnight/JJ
use/NN
in/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
or/CC
more/JJR
./.
Source/NN
:/:
Fulton/NNP
Prebon/NNP
U.S.A/NNP
./.
Inc/NNP
./.
DISCOUNT/NNP
RATE/NNP
:/:
7/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
depository/NN
institutions/NNS
by/IN
the/DT
New/NNP
York/NNP
Federal/NNP
Reserve/NNP
Bank/NNP
./.
CALL/NNP
MONEY/NNP
:/:
9/CD
3\/4/CD
%/NN
to/TO
10/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
brokers/NNS
on/IN
stock/NN
exchange/NN
collateral/NN
./.
COMMERCIAL/NNP
PAPER/NNP
placed/VBN
directly/RB
by/IN
General/NNP
Motors/NNP
Acceptance/NNP
Corp./NNP
:/:
8.50/CD
%/NN
30/CD
to/TO
44/CD
days/NNS
;/:
8.25/CD
%/NN
45/CD
to/TO
62/CD
days/NNS
;/:
8.375/CD
%/NN
63/CD
to/TO
89/CD
days/NNS
;/:
8/CD
%/NN
90/CD
to/TO
119/CD
days/NNS
;/:
7.90/CD
%/NN
120/CD
to/TO
149/CD
days/NNS
;/:
7.80/CD
%/NN
150/CD
to/TO
179/CD
days/NNS
;/:
7.55/CD
%/NN
180/CD
to/TO
270/CD
days/NNS
./.
COMMERCIAL/NNP
PAPER/NNP
:/:
High-grade/JJ
unsecured/JJ
notes/NNS
sold/VBD
through/IN
dealers/NNS
by/IN
major/JJ
corporations/NNS
in/IN
multiples/NNS
of/IN
$/$
1,000/CD
:/:
8.55/CD
%/NN
30/CD
days/NNS
;/:
8.50/CD
%/NN
60/CD
days/NNS
;/:
8.45/CD
%/NN
90/CD
days/NNS
./.
CERTIFICATES/NNS
OF/IN
DEPOSIT/NN
:/:
8.09/CD
%/NN
one/CD
month/NN
;/:
8.04/CD
%/NN
two/CD
months/NNS
;/:
8.03/CD
%/NN
three/CD
months/NNS
;/:
7.96/CD
%/NN
six/CD
months/NNS
;/:
7.92/CD
%/NN
one/CD
year/NN
./.
Average/NN
of/IN
top/JJ
rates/NNS
paid/VBN
by/IN
major/JJ
New/NNP
York/NNP
banks/NNS
on/IN
primary/JJ
new/JJ
issues/NNS
of/IN
negotiable/JJ
C.D.s/NNS
,/,
usually/RB
on/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
and/CC
more/JJR
./.
The/DT
minimum/NN
unit/NN
is/VBZ
$/$
100,000/CD
./.
Typical/JJ
rates/NNS
in/IN
the/DT
secondary/JJ
market/NN
:/:
8.55/CD
%/NN
one/CD
month/NN
;/:
8.55/CD
%/NN
three/CD
months/NNS
;/:
8.35/CD
%/NN
six/CD
months/NNS
./.
BANKERS/NNS
ACCEPTANCES/NNS
:/:
8.47/CD
%/NN
30/CD
days/NNS
;/:
8.42/CD
%/NN
60/CD
days/NNS
;/:
8.25/CD
%/NN
90/CD
days/NNS
;/:
8.10/CD
%/NN
120/CD
days/NNS
;/:
8.02/CD
%/NN
150/CD
days/NNS
;/:
7.95/CD
%/NN
180/CD
days/NNS
./.
Negotiable/JJ
,/,
bank-backed/JJ
business/NN
credit/NN
instruments/NNS
typically/RB
financing/VBG
an/DT
import/NN
order/NN
./.
LONDON/NNP
LATE/RB
EURODOLLARS/NNS
:/:
8/CD
3\/4/CD
%/NN
to/TO
8/CD
5\/8/CD
%/NN
one/CD
month/NN
;/:
8/CD
13\/16/CD
%/NN
to/TO
8/CD
11\/16/CD
%/NN
two/CD
months/NNS
;/:
8/CD
11\/16/CD
%/NN
to/TO
8/CD
9\/16/CD
%/NN
three/CD
months/NNS
;/:
8/CD
9\/16/CD
%/NN
to/TO
8/CD
7\/16/CD
%/NN
four/CD
months/NNS
;/:
8/CD
1\/2/CD
%/NN
to/TO
8/CD
3\/8/CD
%/NN
five/CD
months/NNS
;/:
8/CD
7\/16/CD
%/NN
to/TO
8/CD
5\/16/CD
%/NN
six/CD
months/NNS
./.
LONDON/NNP
INTERBANK/NNP
OFFERED/NNP
RATES/NNP
LIBOR/NNP
8/CD
11\/16/CD
%/NN
one/CD
month/NN
;/:
8/CD
11\/16/CD
%/NN
three/CD
months/NNS
;/:
8/CD
7\/16/CD
%/NN
six/CD
months/NNS
;/:
8/CD
3\/8/CD
%/NN
one/CD
year/NN
./.
The/DT
average/NN
of/IN
interbank/NN
offered/VBN
rates/NNS
for/IN
dollar/NN
deposits/NNS
in/IN
the/DT
London/NNP
market/NN
based/VBN
on/IN
quotations/NNS
at/IN
five/CD
major/JJ
banks/NNS
./.
FOREIGN/JJ
PRIME/JJ
RATES/NNS
:/:
Canada/NNP
13.50/CD
%/NN
;/:
Germany/NNP
9/CD
%/NN
;/:
Japan/NNP
4.875/CD
%/NN
;/:
Switzerland/NNP
8.50/CD
%/NN
;/:
Britain/NNP
15/CD
%/NN
./.
These/DT
rate/NN
indications/NNS
are/VBP
n't/RB
directly/RB
comparable/JJ
;/:
lending/NN
practices/NNS
vary/VBP
widely/RB
by/IN
location/NN
./.
TREASURY/NNP
BILLS/NNS
:/:
Results/NNS
of/IN
the/DT
Monday/NNP
,/,
October/NNP
30/CD
,/,
1989/CD
,/,
auction/NN
of/IN
short-term/JJ
U.S./NNP
government/NN
bills/NNS
,/,
sold/VBD
at/IN
a/DT
discount/NN
from/IN
face/NN
value/NN
in/IN
units/NNS
of/IN
$/$
10,000/CD
to/TO
$/$
1/CD
million/CD
:/:
7.78/CD
%/NN
,/,
13/CD
weeks/NNS
;/:
7.62/CD
%/NN
,/,
26/CD
weeks/NNS
./.
FEDERAL/NNP
HOME/NNP
LOAN/NNP
MORTGAGE/NNP
CORP./NNP
Freddie/NNP
Mac/NNP
yields/NNS
on/IN
30-year/JJ
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
./.
9.86/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
7.875/CD
%/NN
,/,
2/CD
%/NN
rate/NN
capped/VBD
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNP
Inc/NNP
./.
FEDERAL/NNP
NATIONAL/NNP
MORTGAGE/NNP
ASSOCIATION/NNP
Fannie/NNP
Mae/NNP
yields/NNS
on/IN
30/CD
year/NN
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
par/NN
9.76/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
8.75/CD
%/NN
,/,
6\/2/CD
rate/NN
capped/VBD
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNP
Inc/NNP
./.
MERRILL/NNP
LYNCH/NNP
READY/NNP
ASSETS/NNP
TRUST/NNP
:/:
8.70/CD
%/NN
./.
Annualized/VBN
average/JJ
rate/NN
of/IN
return/NN
after/IN
expenses/NNS
for/IN
the/DT
past/JJ
30/CD
days/NNS
;/:
not/RB
a/DT
forecast/NN
of/IN
future/JJ
returns/NNS
./.
Oh/UH
,/,
that/DT
terrible/JJ
Mr./NNP
Ortega/NNP
./.
Just/RB
when/WRB
American/JJ
liberalism/NN
had/VBD
pulled/VBN
the/DT
arms/NNS
plug/NN
on/IN
the/DT
Contras/NNS
and/CC
their/PRP$
friend/NN
Ronald/NNP
Reagan/NNP
,/,
along/IN
comes/VBZ
Mr./NNP
Ortega/NNP
in/IN
Costa/NNP
Rica/NNP
this/DT
weekend/NN
to/TO
``/``
blunder/VB
''/''
into/IN
the/DT
hands/NNS
of/IN
what/WP
are/VBP
often/RB
called/VBN
conservatives/NNS
./.
Conservatives/NNS
are/VBP
the/DT
faction/NN
in/IN
U.S./NNP
politics/NNS
which/WDT
always/RB
said/VBD
that/IN
Mr./NNP
Ortega/NNP
and/CC
his/PRP$
friends/NNS
do/VBP
n't/RB
want/VB
to/TO
hold/VB
an/DT
election/NN
in/IN
Nicaragua/NNP
./.
Liberals/NNS
are/VBP
the/DT
faction/NN
that/WDT
says/VBZ
,/,
Give/VB
peace/NN
a/DT
chance/NN
;/:
now/RB
they/PRP
are/VBP
saying/VBG
Mr./NNP
Ortega/NNP
should/MD
give/VB
them/PRP
a/DT
break/NN
,/,
lest/IN
the/DT
conservatives/NNS
ask/VB
them/PRP
to/TO
vote/VB
for/IN
bullets/NNS
instead/RB
of/IN
bandages/NNS
./.
We/PRP
suspect/VBP
Daniel/NNP
Ortega/NNP
knows/VBZ
the/DT
difference/NN
between/IN
a/DT
blunder/NN
and/CC
a/DT
strategy/NN
./.
He/PRP
knows/VBZ
that/IN
making/VBG
George/NNP
Bush/NNP
look/VB
silly/JJ
in/IN
a/DT
photograph/NN
with/IN
him/PRP
will/MD
trigger/VB
Noriegan/JJ
fulminations/NNS
,/,
and/CC
that/IN
announcing/VBG
an/DT
end/NN
to/TO
the/DT
liberals/NNS
'/POS
cease-fire/NN
will/MD
produce/VB
mainly/RB
their/PRP$
concern/NN
over/IN
the/DT
Contras/NNP
'/POS
military/JJ
activities/NNS
in/IN
northern/JJ
Nicaragua/NNP
./.
Mr./NNP
Ortega/NNP
understands/VBZ
better/RBR
than/IN
those/DT
who/WP
worry/VBP
about/IN
his/PRP$
behavior/NN
that/IN
what/WP
sustains/VBZ
the/DT
Sandinista/NNP
movement/NN
is/VBZ
not/RB
democratic/JJ
peace/NN
,/,
but/CC
nondemocratic/JJ
unpeace/NN
./.
It/PRP
is/VBZ
the/DT
presence/NN
of/IN
internal/JJ
and/CC
external/JJ
``/``
enemies/NNS
''/''
which/WDT
justifies/VBZ
the/DT
need/NN
for/IN
a/DT
large/JJ
,/,
active/JJ
army/NN
that/IN
Mikhail/NNP
Gorbachev/NNP
's/POS
Soviet/NNP
Union/NNP
continues/VBZ
to/TO
supply/VB
with/IN
bullets/NNS
./.
Annualized/VBN
interest/NN
rates/NNS
on/IN
certain/JJ
investments/NNS
as/IN
reported/VBN
by/IN
the/DT
Federal/NNP
Reserve/NNP
Board/NNP
on/IN
a/DT
weekly-average/JJ
basis/NN
:/:
a/SYM
-/:
Discounted/VBN
rate/NN
./.
b/SYM
-/:
Week/NN
ended/VBN
Wednesday/NNP
,/,
October/NNP
25/CD
,/,
1989/CD
and/CC
Wednesday/NNP
October/NNP
18/CD
,/,
1989/CD
./.
c/SYM
-/:
Yields/NNS
,/,
adjusted/VBN
for/IN
constant/JJ
maturity/NN
./.
Cetus/NNP
Corp./NNP
said/VBD
the/DT
government/NN
of/IN
Spain/NNP
approved/VBD
the/DT
marketing/NN
of/IN
its/PRP$
Proleukin/NNP
interleukin-2/NN
drug/NN
to/TO
treat/VB
kidney/NN
cancer/NN
./.
The/DT
biotechnology/NN
concern/NN
said/VBD
Spanish/JJ
authorities/NNS
must/MD
still/RB
clear/VB
the/DT
price/NN
for/IN
the/DT
treatment/NN
,/,
but/CC
that/IN
it/PRP
expects/VBZ
to/TO
receive/VB
such/JJ
approval/NN
by/IN
year/NN
end/NN
./.
Four/CD
other/JJ
countries/NNS
in/IN
Europe/NNP
have/VBP
approved/VBN
Proleukin/NNP
in/IN
recent/JJ
months/NNS
./.
Cetus/NNP
is/VBZ
currently/RB
trying/VBG
to/TO
obtain/VB
federal/JJ
regulatory/JJ
clearance/NN
for/IN
U.S./NNP
distribution/NN
./.
The/DT
Treasury/NNP
Department/NNP
proposed/VBD
that/IN
banks/NNS
be/VB
required/VBN
to/TO
keep/VB
detailed/JJ
records/NNS
of/IN
international/JJ
wire/NN
transfers/NNS
,/,
which/WDT
officials/NNS
believe/VBP
is/VBZ
the/DT
main/JJ
vehicle/NN
used/VBN
by/IN
drug/NN
traffickers/NNS
to/TO
move/VB
billions/NNS
of/IN
dollars/NNS
in/IN
and/CC
out/IN
of/IN
the/DT
U.S/NNP
./.
In/IN
recent/JJ
testimony/NN
on/IN
Capitol/NNP
Hill/NNP
,/,
Treasury/NNP
officials/NNS
said/VBD
they/PRP
were/VBD
considering/VBG
the/DT
new/JJ
reporting/NN
requirements/NNS
,/,
and/CC
the/DT
expected/VBN
publication/NN
of/IN
the/DT
proposal/NN
in/IN
the/DT
Federal/NNP
Register/NNP
today/NN
is/VBZ
the/DT
first/JJ
official/JJ
step/NN
toward/IN
creating/VBG
final/JJ
regulations/NNS
./.
The/DT
Treasury/NNP
is/VBZ
still/RB
working/VBG
out/RP
the/DT
details/NNS
with/IN
bank/NN
trade/NN
associations/NNS
and/CC
the/DT
other/JJ
government/NN
agencies/NNS
that/WDT
have/VBP
a/DT
hand/NN
in/IN
fighting/VBG
money/NN
laundering/NN
./.
Among/IN
the/DT
possibilities/NNS
the/DT
Treasury/NNP
is/VBZ
considering/VBG
are/VBP
requirements/NNS
that/IN
banks/NNS
keep/VB
records/NNS
identifying/VBG
the/DT
originators/NNS
and/CC
recipients/NNS
of/IN
international/JJ
wire/NN
transfers/NNS
./.
Another/DT
suggestion/NN
would/MD
draw/VB
banks/NNS
more/RBR
directly/RB
into/IN
tracking/VBG
down/RP
money/NN
launderers/NNS
by/IN
developing/VBG
a/DT
``/``
suspicious/JJ
international/JJ
wire/NN
transfer/NN
profile/NN
,/,
''/''
which/WDT
banks/NNS
would/MD
use/VB
to/TO
spotlight/VB
questionable/JJ
payments/NNS
./.
But/CC
banks/NNS
may/MD
prefer/VB
using/VBG
a/DT
profile/NN
that/WDT
targets/VBZ
selected/VBN
transactions/NNS
,/,
rather/RB
than/IN
a/DT
blanket/NN
reporting/NN
requirement/NN
./.
Banks/NNS
now/RB
are/VBP
required/VBN
only/RB
to/TO
report/VB
cash/NN
deposits/NNS
or/CC
withdrawals/NNS
of/IN
$/$
10,000/CD
or/CC
more/JJR
./.
But/CC
wire/NN
transfers/NNS
from/IN
a/DT
standing/VBG
account/NN
--/:
including/VBG
those/DT
bigger/JJR
than/IN
$/$
10,000/CD
--/:
are/VBP
n't/RB
reported/VBN
./.
Officials/NNS
believe/VBP
this/DT
has/VBZ
left/VBN
a/DT
gaping/JJ
loophole/NN
that/IN
illegal/JJ
drug/NN
businesses/NNS
are/VBP
exploiting/VBG
./.
Authorities/NNS
estimate/VBP
that/IN
revenues/NNS
from/IN
illegal/JJ
drugs/NNS
in/IN
the/DT
U.S./NNP
total/VBP
about/RB
$/$
110/CD
billion/CD
annually/RB
./.
Sen./NNP
John/NNP
Kerry/NNP
D./NNP
,/,
Mass./NNP
chairman/NN
of/IN
a/DT
Senate/NNP
Foreign/NNP
Relations/NNP
subcommittee/NN
that/WDT
oversees/VBZ
the/DT
issue/NN
of/IN
money/NN
laundering/NN
,/,
criticized/VBD
the/DT
proposal/NN
for/IN
ignoring/VBG
wire/NN
transfers/NNS
between/IN
foreign/JJ
banks/NNS
that/WDT
are/VBP
executed/VBN
and/CC
cleared/VBN
on/IN
U.S./NNP
wire/NN
systems/NNS
./.
The/DT
American/NNP
Bankers/NNP
Association/NNP
did/VBD
n't/RB
have/VB
any/DT
comment/NN
on/IN
the/DT
plan/NN
./.
The/DT
proposal/NN
now/RB
enters/VBZ
a/DT
60-day/JJ
comment/NN
period/NN
,/,
after/IN
which/WDT
the/DT
Treasury/NNP
will/MD
propose/VB
final/JJ
regulations/NNS
,/,
followed/VBN
by/IN
another/DT
comment/NN
period/NN
./.
Western/NNP
Union/NNP
Corp./NNP
took/VBD
steps/NNS
to/TO
withdraw/VB
its/PRP$
proposed/VBN
debt/NN
swap/NN
for/IN
$/$
500/CD
million/CD
in/IN
high-interest/JJ
notes/NNS
and/CC
said/VBD
it/PRP
is/VBZ
looking/VBG
at/IN
other/JJ
alternatives/NNS
for/IN
refinancing/VBG
the/DT
debt/NN
./.
Western/NNP
Union/NNP
had/VBD
said/VBD
two/CD
weeks/NNS
ago/RB
that/IN
it/PRP
might/MD
withdraw/VB
the/DT
pending/VBG
offer/NN
,/,
which/WDT
would/MD
have/VB
replaced/VBN
$/$
500/CD
million/CD
in/IN
so-called/JJ
reset/JJ
notes/NNS
,/,
now/RB
paying/VBG
19.25/CD
%/NN
annual/JJ
interest/NN
and/CC
set/VBN
to/TO
come/VB
due/RB
in/IN
1992/CD
,/,
with/IN
two/CD
new/JJ
issues/NNS
paying/VBG
lower/JJR
interest/NN
./.
Yesterday/NN
the/DT
company/NN
said/VBD
it/PRP
had/VBD
filed/VBN
a/DT
request/NN
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
to/TO
withdraw/VB
the/DT
registration/NN
statement/NN
regarding/VBG
the/DT
proposed/VBN
swap/NN
./.
A/DT
Western/NNP
Union/NNP
spokesman/NN
,/,
citing/VBG
adverse/JJ
developments/NNS
in/IN
the/DT
market/NN
for/IN
high-yield/JJ
``/``
junk/NN
''/''
bonds/NNS
,/,
declined/VBD
to/TO
say/VB
what/WP
alternatives/NNS
are/VBP
under/IN
consideration/NN
./.
But/CC
some/DT
holders/NNS
of/IN
the/DT
Western/NNP
Union/NNP
notes/NNS
expect/VBP
the/DT
company/NN
to/TO
propose/VB
a/DT
more-attractive/JJ
debt/NN
swap/NN
that/WDT
will/MD
give/VB
them/PRP
a/DT
substantial/JJ
equity/NN
stake/NN
in/IN
the/DT
company/NN
./.
Western/NNP
Union/NNP
has/VBZ
had/VBD
major/JJ
losses/NNS
in/IN
recent/JJ
years/NNS
as/IN
its/PRP$
telex/NN
business/NN
has/VBZ
faltered/VBN
in/IN
the/DT
face/NN
of/IN
competition/NN
from/IN
facsimile/NN
machines/NNS
and/CC
as/RB
other/JJ
business/NN
ventures/NNS
have/VBP
gone/VBN
awry/RB
./.
The/DT
major/JJ
question/NN
,/,
said/VBD
one/CD
holder/NN
who/WP
asked/VBD
not/RB
to/TO
be/VB
named/VBN
,/,
is/VBZ
whether/IN
New/NNP
York/NNP
investor/NN
Bennett/NNP
S./NNP
LeBow/NNP
,/,
whose/WP$
Brooke/NNP
Partners/NNP
controls/VBZ
Western/NNP
Union/NNP
,/,
is/VBZ
willing/JJ
to/TO
offer/VB
a/DT
large/JJ
enough/RB
equity/NN
stake/NN
to/TO
entice/VB
bondholders/NNS
into/IN
agreeing/VBG
to/TO
a/DT
new/JJ
swap/NN
./.
The/DT
$/$
500/CD
million/CD
in/IN
notes/NNS
,/,
the/DT
largest/JJS
chunk/NN
of/IN
Western/NNP
Union/NNP
's/POS
$/$
640/CD
million/CD
in/IN
long-term/JJ
debt/NN
,/,
stems/VBZ
from/IN
the/DT
company/NN
's/POS
major/JJ
restructuring/NN
in/IN
December/NNP
1987/CD
./.
The/DT
notes/NNS
became/VBD
burdensome/JJ
when/WRB
reset/NN
provisions/NNS
allowed/VBD
their/PRP$
interest/NN
rate/NN
to/TO
be/VB
raised/VBN
to/TO
19.25/CD
%/NN
last/JJ
June/NNP
./.
Western/NNP
Union/NNP
had/VBD
offered/VBN
to/TO
swap/VB
each/DT
$/$
1,000/CD
face/NN
amount/NN
of/IN
the/DT
notes/NNS
for/IN
six/CD
shares/NNS
of/IN
common/JJ
stock/NN
and/CC
two/CD
new/JJ
debt/NN
issues/NNS
:/:
a/DT
$/$
500/CD
note/NN
paying/VBG
an/DT
interest/NN
rate/NN
starting/VBG
at/IN
16.75/CD
%/NN
annually/RB
and/CC
rising/VBG
in/IN
later/JJ
years/NNS
,/,
due/RB
in/IN
1992/CD
,/,
and/CC
a/DT
$/$
500/CD
note/NN
,/,
due/RB
in/IN
1997/CD
,/,
paying/VBG
a/DT
fixed/VBN
rate/NN
of/IN
17/CD
%/NN
and/CC
including/VBG
rights/NNS
protecting/VBG
a/DT
holder/NN
against/IN
a/DT
decline/NN
in/IN
the/DT
trading/NN
price/NN
of/IN
the/DT
bond/NN
./.
Western/NNP
Union/NNP
must/MD
make/VB
$/$
48/CD
million/CD
in/IN
interest/NN
payments/NNS
on/IN
the/DT
reset/NN
notes/NNS
on/IN
Dec./NNP
15/CD
,/,
and/CC
a/DT
company/NN
spokesman/NN
said/VBD
it/PRP
fully/RB
intends/VBZ
to/TO
meet/VB
the/DT
payments/NNS
./.
But/CC
Western/NNP
Union/NNP
has/VBZ
said/VBD
it/PRP
must/MD
lower/VB
the/DT
interest/NN
rate/NN
on/IN
its/PRP$
debt/NN
to/TO
regain/VB
full/JJ
financial/JJ
health/NN
./.
Genentech/NNP
Inc./NNP
said/VBD
the/DT
West/NNP
German/NNP
distributor/NN
of/IN
its/PRP$
heart/NN
drug/NN
TPA/NNP
reached/VBD
a/DT
joint/NN
marketing/NN
agreement/NN
with/IN
a/DT
subsidiary/NN
of/IN
Hoechst/NNP
AG/NNP
,/,
which/WDT
makes/VBZ
the/DT
rival/JJ
anti-clotting/JJ
agent/NN
streptokinase/NNP
./.
The/DT
biotechnology/NN
concern/NN
said/VBD
the/DT
agreement/NN
between/IN
its/PRP$
longtime/NN
West/NNP
German/NNP
distributor/NN
,/,
Boehringer-Ingleheim/NNP
's/POS
Dr./NNP
Karl/NNP
Thomae/NNP
G.m.b.H./NNP
subsidiary/NN
,/,
and/CC
Hoechst/NNP
's/POS
Behringwerke/NNP
subsidiary/NN
was/VBD
an/DT
attempt/NN
to/TO
expand/VB
the/DT
market/NN
for/IN
blood-clot/NN
drugs/NNS
in/IN
general/NN
./.
A/DT
Genentech/NNP
spokeswoman/NN
said/VBD
the/DT
agreement/NN
calls/VBZ
for/IN
Hoechst/NNP
to/TO
promote/VB
TPA/NNP
for/IN
heart/NN
patients/NNS
and/CC
streptokinase/NNP
for/IN
other/JJ
clot-reducing/JJ
purposes/NNS
./.
Investors/NNS
in/IN
the/DT
over-the-counter/JJ
market/NN
dumped/VBD
banking/NN
and/CC
insurance/NN
issues/NNS
,/,
sending/VBG
the/DT
Nasdaq/NNP
composite/JJ
index/NN
lower/RBR
for/IN
the/DT
third/JJ
consecutive/JJ
session/NN
./.
All/DT
Nasdaq/NNP
industry/NN
indexes/NNS
finished/VBD
lower/RBR
,/,
with/IN
financial/JJ
issues/NNS
hit/VBN
the/DT
hardest/JJS
./.
Despite/IN
some/DT
early/JJ
computer-guided/JJ
program/NN
buying/NN
,/,
the/DT
Nasdaq/NNP
composite/NN
fell/VBD
1.39/CD
to/TO
451.37/CD
./.
The/DT
OTC/NNP
market/NN
now/RB
has/VBZ
declined/VBN
in/IN
eight/CD
of/IN
the/DT
past/JJ
11/CD
sessions/NNS
./.
The/DT
Nasdaq/NNP
bank/NN
index/NN
fell/VBD
5.00/CD
to/TO
432.61/CD
,/,
while/IN
the/DT
insurance/NN
index/NN
fell/VBD
3.56/CD
to/TO
528.56/CD
,/,
and/CC
the/DT
``/``
other/JJ
finance/NN
''/''
index/NN
dropped/VBD
3.27/CD
to/TO
529.32/CD
./.
The/DT
largest/JJS
financial/JJ
issues/NNS
,/,
as/IN
measured/VBN
by/IN
the/DT
Nasdaq/NNP
financial/JJ
index/NN
,/,
tumbled/VBD
3.23/CD
to/TO
Meanwhile/RB
,/,
the/DT
index/NN
of/IN
the/DT
100/CD
biggest/JJS
non-financial/JJ
stocks/NNS
,/,
the/DT
Nasdaq/NNP
100/CD
,/,
gained/VBD
0.47/CD
to/TO
438.15/CD
./.
Profit-taking/NN
accounted/VBD
for/IN
much/JJ
of/IN
the/DT
slide/NN
in/IN
OTC/NNP
stock/NN
prices/NNS
,/,
according/VBG
to/TO
David/NNP
Mills/NNP
,/,
senior/JJ
vice/NN
president/NN
of/IN
Boston/NNP
Company/NNP
Advisers/NNP
./.
He/PRP
said/VBD
many/JJ
portfolio/NN
managers/NNS
,/,
whose/WP$
year-end/JJ
bonuses/NNS
are/VBP
tied/VBN
to/TO
annual/JJ
performance/NN
,/,
are/VBP
selling/VBG
now/RB
rather/RB
than/IN
risk/VB
seeing/VBG
their/PRP$
gains/NNS
erode/VB
further/RBR
./.
``/``
The/DT
profit/NN
locking-in/NN
is/VBZ
definitely/RB
going/VBG
on/RP
,/,
''/''
said/VBD
Mr./NNP
Mills/NNP
,/,
whose/WP$
firm/NN
manages/VBZ
$/$
600/CD
million/CD
for/IN
Boston/NNP
Co/NNP
./.
Tax-loss/NN
sellers/NNS
,/,
those/DT
investors/NNS
who/WP
sell/VBP
loss-making/JJ
stocks/NNS
so/IN
they/PRP
can/MD
deduct/VB
their/PRP$
losses/NNS
from/IN
this/DT
year/NN
's/POS
income/NN
,/,
are/VBP
also/RB
getting/VBG
out/RB
,/,
Mr./NNP
Mills/NNP
said/VBD
./.
That/DT
's/VBZ
helping/VBG
put/VB
pressure/NN
on/IN
both/DT
the/DT
market/NN
's/POS
winners/NNS
and/CC
its/PRP$
losers/NNS
./.
``/``
The/DT
stocks/NNS
that/WDT
have/VBP
been/VBN
the/DT
best/JJS
are/VBP
having/VBG
big/JJ
pullbacks/NNS
,/,
and/CC
the/DT
ones/NNS
that/WDT
have/VBP
been/VBN
the/DT
worst/JJS
are/VBP
getting/VBG
clobbered/VBD
,/,
''/''
Mr./NNP
Mills/NNP
said/VBD
./.
He/PRP
expects/VBZ
the/DT
market/NN
to/TO
sink/VB
further/RBR
and/CC
to/TO
reach/VB
a/DT
low/NN
sometime/RB
next/JJ
month/NN
or/CC
in/IN
December/NNP
./.
The/DT
selling/NN
by/IN
money/NN
managers/NNS
and/CC
individual/JJ
investors/NNS
is/VBZ
turning/VBG
traders/NNS
bearish/JJ
as/IN
well/RB
./.
``/``
We/PRP
are/VBP
advising/VBG
a/DT
lot/NN
of/IN
our/PRP$
clients/NNS
to/TO
make/VB
moves/NNS
that/WDT
make/VBP
sense/NN
to/TO
them/PRP
,/,
rather/RB
than/IN
waiting/VBG
until/IN
the/DT
last/JJ
minute/NN
,/,
because/IN
things/NNS
have/VBP
been/VBN
so/RB
volatile/JJ
,/,
''/''
said/VBD
William/NNP
Sulya/NNP
,/,
head/NN
of/IN
OTC/NNP
trading/VBG
at/IN
A.G./NNP
Edwards/NNP
&/CC
Sons/NNP
in/IN
St./NNP
Louis/NNP
./.
Ralph/NNP
Costanza/NNP
,/,
head/NN
of/IN
the/DT
OTC/NNP
trading/NN
department/NN
at/IN
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
,/,
said/VBD
many/JJ
market/NN
players/NNS
are/VBP
awaiting/VBG
some/DT
resolution/NN
of/IN
the/DT
current/JJ
debate/NN
over/IN
program/NN
trading/NN
./.
Much/JJ
of/IN
the/DT
market/NN
's/POS
recent/JJ
volatility/NN
has/VBZ
been/VBN
blamed/VBN
on/IN
this/DT
large-scale/JJ
computerized/JJ
trading/NN
technique/NN
that/WDT
can/MD
send/VB
stock/NN
prices/NNS
surging/VBG
or/CC
plummeting/VBG
in/IN
a/DT
matter/NN
of/IN
minutes/NNS
./.
The/DT
problem/NN
has/VBZ
been/VBN
particularly/RB
damaging/JJ
to/TO
the/DT
OTC/NNP
market/NN
,/,
traditionally/RB
a/DT
base/NN
for/IN
the/DT
small/JJ
investor/NN
./.
Weisfield/NNP
's/POS
surged/VBD
14/CD
to/TO
53/CD
after/IN
agreeing/VBG
in/IN
principle/NN
to/TO
be/VB
acquired/VBN
by/IN
a/DT
unit/NN
of/IN
Ratners/NNP
Group/NNP
for/IN
$/$
50/CD
a/DT
share/NN
./.
The/DT
stock/NN
jumped/VBD
9/CD
1\/2/CD
Friday/NNP
,/,
when/WRB
the/DT
company/NN
announced/VBD
it/PRP
was/VBD
in/IN
takeover/NN
talks/NNS
./.
Ratners/NNP
and/CC
Weisfield/NNP
's/POS
said/VBD
they/PRP
expect/VBP
to/TO
sign/VB
definitive/JJ
agreements/NNS
shortly/RB
and/CC
to/TO
complete/VB
the/DT
transaction/NN
by/IN
Dec./NNP
15/CD
./.
Mid-State/NNP
Federal/NNP
Savings/NNP
Bank/NNP
advanced/VBD
1/CD
1\/2/CD
to/TO
20/CD
1\/4/CD
after/IN
it/PRP
said/VBD
it/PRP
is/VBZ
in/IN
talks/NNS
with/IN
a/DT
possible/JJ
acquirer/NN
./.
The/DT
bank/NN
said/VBD
the/DT
talks/NNS
resulted/VBD
from/IN
solicitations/NNS
by/IN
its/PRP$
financial/JJ
adviser/NN
./.
Jaguar/NNP
assumed/VBD
its/PRP$
recently/RB
customary/JJ
place/NN
on/IN
the/DT
OTC/NNP
most/RBS
active/JJ
list/NN
as/IN
its/PRP$
American/JJ
depository/NN
receipts/NNS
gained/VBD
1\/4/CD
to/TO
11/CD
7\/8/CD
on/IN
volume/NN
of/IN
1.2/CD
million/CD
shares/NNS
and/CC
Daimler-Benz/NNP
joined/VBD
the/DT
list/NN
of/IN
companies/NNS
interested/VBN
in/IN
the/DT
British/JJ
car/NN
maker/NN
./.
Daimler/NNP
said/VBD
it/PRP
has/VBZ
had/VBD
talks/NNS
with/IN
Jaguar/NNP
about/IN
possible/JJ
joint/JJ
ventures/NNS
./.
Meanwhile/RB
,/,
General/NNP
Motors/NNP
and/CC
Ford/NNP
Motor/NNP
continue/VBP
their/PRP$
pursuit/NN
of/IN
the/DT
company/NN
./.
Ford/NNP
has/VBZ
acquired/VBN
more/JJR
than/IN
13/CD
%/NN
of/IN
Jaguar/NNP
's/POS
shares/NNS
,/,
and/CC
GM/NNP
has/VBZ
received/VBN
U.S./NNP
regulatory/JJ
clearance/NN
to/TO
buy/VB
15/CD
%/NN
./.
ShowBiz/NNP
Pizza/NNP
Time/NNP
gained/VBD
1/CD
1\/2/CD
to/TO
13/CD
./.
The/DT
company/NN
reported/VBD
third-quarter/JJ
operating/NN
profit/NN
of/IN
37/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
12/CD
cents/NNS
a/DT
share/NN
a/DT
year/NN
earlier/RB
./.
A/DT
third-quarter/JJ
charge/NN
of/IN
$/$
3.5/CD
million/CD
related/VBN
to/TO
planned/VBN
restaurant/NN
closings/NNS
resulted/VBD
in/IN
a/DT
net/JJ
loss/NN
for/IN
the/DT
quarter/NN
./.
Employers/NNP
Casualty/NNP
,/,
which/WDT
reported/VBD
a/DT
$/$
53.9/CD
million/CD
third-quarter/JJ
loss/NN
late/JJ
Friday/NNP
,/,
fell/VBD
2/CD
1\/4/CD
to/TO
13/CD
3\/4/CD
./.
The/DT
loss/NN
was/VBD
largely/RB
due/JJ
to/TO
a/DT
$/$
55.2/CD
million/CD
addition/NN
to/TO
reserves/NNS
./.
Employers/NNP
Casualty/NNP
had/VBD
a/DT
loss/NN
of/IN
$/$
3.6/CD
million/CD
in/IN
the/DT
year-earlier/JJ
quarter/NN
./.
Old/NNP
Stone/NNP
fell/VBD
1/CD
5\/8/CD
to/TO
13/CD
1\/2/CD
./.
Late/RB
Friday/NNP
,/,
the/DT
company/NN
reported/VBD
a/DT
loss/NN
of/IN
$/$
51.3/CD
million/CD
for/IN
the/DT
third/JJ
quarter/NN
after/IN
earning/VBG
$/$
9.2/CD
million/CD
a/DT
year/NN
before/RB
./.
The/DT
loss/NN
came/VBD
after/IN
a/DT
$/$
23.3/CD
million/CD
addition/NN
to/TO
loan-loss/JJ
reserves/NNS
./.
The/DT
bank/NN
made/VBD
a/DT
$/$
4.5/CD
million/CD
provision/NN
in/IN
the/DT
1988/CD
quarter/NN
./.
Old/NNP
Stone/NNP
repeated/VBD
projections/NNS
that/IN
it/PRP
will/MD
be/VB
profitable/JJ
for/IN
the/DT
fourth/JJ
quarter/NN
and/CC
will/NN
about/RB
break/VB
even/RB
for/IN
the/DT
year/NN
./.
Abraham/NNP
Lincoln/NNP
Federal/NNP
Savings/NNP
Bank/NNP
sank/VBD
4/CD
to/TO
13/CD
1\/2/CD
after/IN
announcing/VBG
a/DT
shakeup/NN
that/WDT
will/MD
change/VB
senior/JJ
management/NN
and/CC
reorganize/VB
the/DT
bank/NN
's/POS
mortgage/NN
business/NN
as/IN
a/DT
separate/JJ
unit/NN
./.
The/DT
bank/NN
also/RB
said/VBD
it/PRP
will/MD
establish/VB
a/DT
loan-loss/JJ
reserve/NN
of/IN
$/$
2.5/CD
million/CD
to/TO
$/$
4/CD
million/CD
against/IN
a/DT
construction/NN
loan/NN
that/WDT
is/VBZ
in/IN
default/NN
./.
The/DT
bank/NN
,/,
which/WDT
previously/RB
said/VBD
it/PRP
was/VBD
for/IN
sale/NN
,/,
said/VBD
it/PRP
has/VBZ
received/VBN
no/DT
offers/NNS
and/CC
that/DT
its/PRP$
board/NN
will/MD
review/VB
whether/IN
to/TO
continue/VB
soliciting/VBG
bids/NNS
./.
Medical/JJ
scientists/NNS
are/VBP
starting/VBG
to/TO
uncover/VB
a/DT
handful/NN
of/IN
genes/NNS
which/WDT
,/,
if/IN
damaged/VBN
,/,
unleash/VBP
the/DT
chaotic/JJ
growth/NN
of/IN
cells/NNS
that/WDT
characterizes/VBZ
cancer/NN
./.
Scientists/NNS
say/VBP
the/DT
discovery/NN
of/IN
these/DT
genes/NNS
in/IN
recent/JJ
months/NNS
is/VBZ
painting/VBG
a/DT
new/JJ
and/CC
startling/JJ
picture/NN
of/IN
how/WRB
cancer/NN
develops/VBZ
./.
An/DT
emerging/VBG
understanding/NN
of/IN
the/DT
genes/NNS
is/VBZ
expected/VBN
to/TO
produce/VB
an/DT
array/NN
of/IN
new/JJ
strategies/NNS
for/IN
future/JJ
cancer/NN
treatment/NN
and/CC
prevention/NN
./.
That/DT
is/VBZ
for/IN
the/DT
future/NN
./.
Already/RB
,/,
scientists/NNS
are/VBP
developing/VBG
tests/NNS
based/VBN
on/IN
the/DT
newly/RB
identified/VBN
genes/NNS
that/WDT
,/,
for/IN
the/DT
first/JJ
time/NN
,/,
can/MD
predict/VB
whether/IN
an/DT
otherwise/RB
healthy/JJ
individual/NN
is/VBZ
likely/JJ
to/TO
get/VB
cancer/NN
./.
``/``
It/PRP
's/VBZ
a/DT
super-exciting/JJ
set/NN
of/IN
discoveries/NNS
,/,
''/''
says/VBZ
Bert/NNP
Vogelstein/NNP
,/,
a/DT
Johns/NNP
Hopkins/NNP
University/NNP
researcher/NN
who/WP
has/VBZ
just/RB
found/VBN
a/DT
gene/NN
pivotal/JJ
to/TO
the/DT
triggering/VBG
of/IN
colon/NN
cancer/NN
./.
``/``
Only/RB
a/DT
decade/NN
ago/RB
cancer/NN
was/VBD
a/DT
black/JJ
box/NN
about/IN
which/WDT
we/PRP
knew/VBD
nothing/NN
at/IN
the/DT
molecular/JJ
level/NN
./.
Today/NN
,/,
we/PRP
know/VBP
that/IN
the/DT
accumulation/NN
of/IN
several/JJ
of/IN
these/DT
altered/VBN
genes/NNS
can/MD
initiate/VB
a/DT
cancer/NN
and/CC
,/,
then/RB
,/,
propel/VB
it/PRP
into/IN
a/DT
deadly/JJ
state/NN
./.
''/''
Scientists/NNS
call/VBP
the/DT
new/JJ
class/NN
of/IN
genes/NNS
tumor-suppressors/NNS
,/,
or/CC
simply/RB
anti-cancer/JJ
genes/NNS
./.
When/WRB
functioning/VBG
normally/RB
,/,
they/PRP
make/VBP
proteins/NNS
that/WDT
hold/VBP
a/DT
cell/NN
's/POS
growth/NN
in/IN
check/NN
./.
But/CC
if/IN
the/DT
genes/NNS
are/VBP
damaged/VBN
--/:
perhaps/RB
by/IN
radiation/NN
,/,
a/DT
chemical/NN
or/CC
through/IN
a/DT
chance/NN
accident/NN
in/IN
cell/NN
division/NN
--/:
their/PRP$
growth-suppressing/JJ
proteins/VBZ
no/DT
longer/RBR
work/VBP
,/,
and/CC
cells/NNS
normally/RB
under/IN
control/NN
turn/VBP
malignant/JJ
./.
The/DT
newly/RB
identified/VBN
genes/NNS
differ/VBP
from/IN
a/DT
family/NN
of/IN
genes/NNS
discovered/VBN
in/IN
the/DT
early/JJ
1980s/CD
called/VBN
oncogenes/NNS
./.
Oncogenes/NNS
must/MD
be/VB
present/JJ
for/IN
a/DT
cell/NN
to/TO
become/VB
malignant/JJ
,/,
but/CC
researchers/NNS
have/VBP
found/VBN
them/PRP
in/IN
normal/JJ
as/RB
well/RB
as/IN
in/IN
cancerous/JJ
cells/NNS
,/,
suggesting/VBG
that/IN
oncogenes/NNS
do/VBP
n't/RB
cause/VB
cancer/NN
by/IN
themselves/PRP
./.
In/IN
recent/JJ
months/NNS
,/,
researchers/NNS
have/VBP
come/VBN
to/TO
believe/VB
the/DT
two/CD
types/NNS
of/IN
cancer/NN
genes/NNS
work/VBP
in/IN
concert/NN
:/:
An/DT
oncogene/NN
may/MD
turn/VB
proliferating/VBG
cells/NNS
malignant/JJ
only/RB
after/RB
the/DT
tumor-suppressor/JJ
gene/NN
has/VBZ
been/VBN
damaged/VBN
./.
Like/IN
all/DT
genes/NNS
,/,
tumor-suppressor/JJ
genes/NNS
are/VBP
inherited/VBN
in/IN
two/CD
copies/NNS
,/,
one/CD
from/IN
each/DT
parent/NN
./.
Either/DT
copy/NN
can/MD
make/VB
the/DT
proteins/NNS
needed/VBN
to/TO
control/VB
cell/NN
growth/NN
,/,
so/RB
for/IN
cancer/NN
to/TO
arise/VB
,/,
both/DT
copies/NNS
must/MD
be/VB
impaired/JJ
./.
A/DT
person/NN
who/WP
is/VBZ
born/VBN
with/IN
one/CD
defective/JJ
copy/NN
of/IN
a/DT
suppressor/NN
gene/NN
,/,
or/CC
in/IN
whom/WP
one/CD
copy/NN
is/VBZ
damaged/VBN
early/RB
in/IN
life/NN
,/,
is/VBZ
especially/RB
prone/JJ
to/TO
cancer/NN
because/IN
he/PRP
need/MD
only/RB
lose/VB
the/DT
other/JJ
copy/NN
for/IN
a/DT
cancer/NN
to/TO
develop/VB
./.
Emerging/JJ
genetic/JJ
tests/NNS
will/MD
be/VB
able/JJ
to/TO
spot/VB
such/JJ
cancer-susceptible/JJ
individuals/NNS
,/,
ushering/VBG
in/IN
what/WP
some/DT
scientists/NNS
believe/VBP
is/VBZ
a/DT
new/JJ
age/NN
of/IN
predictive/JJ
cancer/NN
diagnosis/NN
./.
Bill/NNP
and/CC
Bonnie/NNP
Quinlan/NNP
are/VBP
among/IN
the/DT
first/JJ
beneficiaries/NNS
of/IN
the/DT
new/JJ
findings/NNS
./.
The/DT
Dedham/NNP
,/,
Mass./NNP
,/,
couple/NN
knew/VBD
even/RB
before/RB
Bonnie/NNP
became/VBD
pregnant/JJ
in/IN
1987/CD
that/IN
any/DT
child/NN
of/IN
theirs/JJ
had/VBD
a/DT
50/CD
%/NN
chance/NN
of/IN
being/VBG
at/IN
risk/NN
for/IN
retinoblastoma/NN
,/,
an/DT
eye/NN
cancer/NN
that/WDT
occurs/VBZ
about/RB
once/RB
every/DT
20,000/CD
births/NNS
./.
Mr./NNP
Quinlan/NNP
,/,
30/CD
years/NNS
old/JJ
,/,
knew/VBD
he/PRP
carried/VBD
a/DT
damaged/VBN
gene/NN
,/,
having/VBG
lost/VBN
an/DT
eye/NN
to/TO
the/DT
rare/JJ
tumor/NN
when/WRB
he/PRP
was/VBD
only/RB
two/CD
months/NNS
old/JJ
--/:
after/IN
his/PRP$
mother/NN
had/VBD
suffered/VBN
the/DT
same/JJ
fate/NN
when/WRB
she/PRP
was/VBD
a/DT
baby/NN
./.
Because/IN
of/IN
the/DT
isolation/NN
of/IN
the/DT
retinoblastoma/NN
tumor-suppressor/JJ
gene/NN
,/,
it/PRP
became/VBD
possible/JJ
last/JJ
January/NNP
to/TO
find/VB
out/RP
what/WP
threat/NN
the/DT
Quinlan/NNP
baby/NN
faced/VBD
./.
A/DT
test/NN
using/VBG
new/JJ
``/``
genetic/JJ
probes/NNS
''/''
showed/VBD
that/DT
little/JJ
Will/NNP
Quinlan/NNP
had/VBD
not/RB
inherited/VBN
a/DT
damaged/VBN
retinoblastoma/NN
supressor/NN
gene/NN
and/CC
,/,
therefore/RB
,/,
faced/VBD
no/DT
more/JJR
risk/NN
than/IN
other/JJ
children/NNS
of/IN
developing/VBG
the/DT
rare/JJ
cancer/NN
./.
``/``
It/PRP
made/VBD
our/PRP$
New/NNP
Year/NNP
,/,
''/''
says/VBZ
Mr./NNP
Quinlan/NNP
./.
This/DT
test/NN
was/VBD
the/DT
first/JJ
to/TO
predict/VB
reliably/RB
whether/IN
an/DT
individual/NN
could/MD
expect/VB
to/TO
develop/VB
cancer/NN
./.
Equally/RB
important/JJ
,/,
the/DT
initial/JJ
discovery/NN
of/IN
the/DT
gene/NN
that/WDT
controls/VBZ
retinal/JJ
cell/NN
growth/NN
,/,
made/VBN
by/IN
a/DT
Boston/NNP
doctor/NN
named/VBN
Thaddeus/NNP
Dryja/NNP
,/,
has/VBZ
opened/VBN
a/DT
field/NN
of/IN
cancer/NN
study/NN
,/,
which/WDT
in/IN
recent/JJ
months/NNS
has/VBZ
exploded/VBN
./.
``/``
It/PRP
turns/VBZ
out/RP
that/IN
studying/VBG
a/DT
tragic/JJ
but/CC
uncommon/JJ
tumor/NN
made/VBD
possible/JJ
some/DT
fundamental/JJ
insights/NNS
about/IN
the/DT
most/JJS
basic/JJ
workings/NNS
of/IN
cancer/NN
,/,
''/''
says/VBZ
Samuel/NNP
Broder/NNP
,/,
director/NN
of/IN
the/DT
National/NNP
Cancer/NNP
Institute/NNP
./.
``/``
All/DT
this/DT
may/MD
not/RB
be/VB
obvious/JJ
to/TO
the/DT
public/NN
,/,
which/WDT
is/VBZ
concerned/VBN
about/IN
advances/NNS
in/IN
treatment/NN
,/,
but/CC
I/PRP
am/VBP
convinced/VBN
this/DT
basic/JJ
research/NN
will/MD
begin/VB
showing/VBG
results/NNS
there/RB
soon/RB
./.
''/''
To/TO
date/NN
,/,
scientists/NNS
have/VBP
fingered/VBN
two/CD
of/IN
these/DT
cancer-suppressors/NNS
./.
Dr./NNP
Dryja/NNP
made/VBD
his/PRP$
retinoblastoma/NN
discovery/NN
in/IN
1986/CD
./.
Then/RB
last/JJ
spring/NN
,/,
researchers/NNS
reported/VBD
finding/VBG
a/DT
gene/NN
called/VBN
p53/CD
which/WDT
,/,
if/IN
impaired/VBN
,/,
turns/VBZ
healthy/JJ
colon/NN
cells/NNS
cancerous/JJ
./.
Soon/RB
after/IN
that/DT
report/NN
,/,
two/CD
other/JJ
research/NN
teams/NNS
uncovered/VBD
evidence/NN
that/IN
the/DT
same/JJ
damaged/VBN
p53/NN
gene/NN
is/VBZ
present/JJ
in/IN
tissue/NN
from/IN
lung/NN
and/CC
breast/NN
cancers/NNS
./.
Colon/NN
,/,
lung/NN
and/CC
breast/NN
cancers/NNS
are/VBP
the/DT
most/RBS
common/JJ
and/CC
lethal/JJ
forms/NNS
of/IN
the/DT
disease/NN
,/,
collectively/RB
killing/VBG
almost/RB
200,000/CD
Americans/NNS
a/DT
year/NN
./.
Right/RB
now/RB
about/RB
a/DT
dozen/NN
laboratories/NNS
,/,
in/IN
the/DT
U.S./NNP
,/,
Canada/NNP
and/CC
Britain/NNP
,/,
are/VBP
racing/VBG
to/TO
unmask/VB
other/JJ
suspected/VBN
tumor-suppressing/JJ
genes/NNS
./.
They/PRP
have/VBP
about/RB
seven/CD
candidates/NNS
./.
Researchers/NNS
say/VBP
the/DT
inactivation/NN
of/IN
tumor-suppressor/JJ
genes/NNS
,/,
alone/RB
or/CC
in/IN
combination/NN
,/,
appears/VBZ
crucial/JJ
to/TO
the/DT
development/NN
of/IN
such/JJ
scourges/NNS
as/IN
cancer/NN
of/IN
the/DT
brain/NN
,/,
the/DT
skin/NN
,/,
kidney/NN
,/,
prostate/NN
,/,
and/CC
cervix/NN
./.
There/EX
is/VBZ
evidence/NN
that/IN
if/IN
people/NNS
inherit/VBP
defective/JJ
versions/NNS
of/IN
these/DT
genes/NNS
,/,
they/PRP
are/VBP
especially/RB
prone/JJ
to/TO
cancer/NN
,/,
perhaps/RB
explaining/VBG
,/,
finally/RB
,/,
why/WRB
some/DT
cancers/NNS
seem/VBP
to/TO
haunt/VB
certain/JJ
families/NNS
./.
The/DT
story/NN
of/IN
tumor-suppressor/JJ
genes/NNS
goes/VBZ
back/RB
to/TO
the/DT
1970s/NNS
,/,
when/WRB
a/DT
pediatrician/NN
named/VBN
Alfred/NNP
G./NNP
Knudson/NNP
Jr./NNP
proposed/VBD
that/DT
retinoblastoma/NN
stemmed/VBD
from/IN
two/CD
separate/JJ
genetic/JJ
defects/NNS
./.
He/PRP
theorized/VBD
that/IN
in/IN
the/DT
eye/NN
cancer/NN
,/,
an/DT
infant/NN
inherited/VBD
a/DT
damaged/VBN
copy/NN
of/IN
a/DT
gene/NN
from/IN
one/CD
parent/NN
and/CC
a/DT
normal/JJ
copy/NN
from/IN
the/DT
other/JJ
./.
The/DT
tumor/NN
,/,
he/PRP
suggested/VBD
,/,
developed/VBD
when/WRB
the/DT
second/JJ
,/,
normal/JJ
copy/NN
also/RB
was/VBD
damaged/VBN
./.
But/CC
there/EX
was/VBD
no/DT
way/NN
to/TO
prove/VB
Dr./NNP
Knudson/NNP
's/POS
``/``
two-hit/JJ
''/''
theory/NN
./.
Back/RB
then/RB
,/,
scientists/NNS
had/VBD
no/DT
way/NN
of/IN
ferreting/VBG
out/RP
specific/JJ
genes/NNS
,/,
but/CC
under/IN
a/DT
microscope/NN
they/PRP
could/MD
see/VB
the/DT
23/CD
pairs/NNS
of/IN
chromosomes/NNS
in/IN
the/DT
cells/NNS
that/WDT
contain/VBP
the/DT
genes/NNS
./.
Occasionally/RB
,/,
gross/JJ
chromosome/NN
damage/NN
was/VBD
visible/JJ
./.
Dr./NNP
Knudson/NNP
found/VBD
that/IN
some/DT
children/NNS
with/IN
the/DT
eye/NN
cancer/NN
had/VBD
inherited/VBN
a/DT
damaged/VBN
copy/NN
of/IN
chromosome/NN
No./NN
13/CD
from/IN
a/DT
parent/NN
who/WP
had/VBD
had/VBN
the/DT
disease/NN
./.
Under/IN
a/DT
microscope/NN
he/PRP
could/MD
actually/RB
see/VB
that/IN
a/DT
bit/NN
of/IN
chromosome/NN
13/CD
was/VBD
missing/VBG
./.
He/PRP
assumed/VBD
the/DT
missing/VBG
piece/NN
contained/VBD
a/DT
gene/NN
or/CC
genes/NNS
whose/WP$
loss/NN
had/VBD
a/DT
critical/JJ
role/NN
in/IN
setting/VBG
off/RP
the/DT
cancer/NN
./.
But/CC
he/PRP
did/VBD
n't/RB
know/VB
which/WDT
gene/NN
or/CC
genes/NNS
had/VBD
disappeared/VBN
./.
Then/RB
,/,
a/DT
scientific/JJ
team/NN
led/VBN
by/IN
molecular/JJ
geneticist/NN
Webster/NNP
Cavenee/NNP
,/,
then/RB
at/IN
the/DT
University/NNP
of/IN
Utah/NNP
,/,
found/VBD
the/DT
answer/NN
./.
The/DT
team/NN
used/VBD
a/DT
battery/NN
of/IN
the/DT
newly/RB
developed/VBN
``/``
gene/NN
probes/NNS
,/,
''/''
snippets/NNS
of/IN
genetic/JJ
material/NN
that/WDT
can/MD
track/VB
a/DT
gene/NN
's/POS
presence/NN
in/IN
a/DT
cell/NN
./.
By/IN
analyzing/VBG
cells/NNS
extracted/VBN
from/IN
eye/NN
tumors/NNS
,/,
they/PRP
found/VBD
defects/NNS
in/IN
the/DT
second/JJ
copy/NN
of/IN
chromosome/NN
13/CD
in/IN
the/DT
exact/JJ
area/NN
as/IN
in/IN
the/DT
first/JJ
copy/NN
of/IN
the/DT
chromosome/NN
./.
The/DT
finding/NN
riveted/VBD
medicine/NN
./.
It/PRP
was/VBD
the/DT
first/JJ
time/NN
anyone/NN
had/VBD
showed/VBN
that/IN
the/DT
loss/NN
of/IN
both/DT
copies/NNS
of/IN
the/DT
same/JJ
gene/NN
could/MD
lead/VB
to/TO
the/DT
eruption/NN
of/IN
a/DT
cancer/NN
./.
``/``
It/PRP
was/VBD
extraordinarily/RB
satisfying/JJ
,/,
''/''
says/VBZ
Dr./NNP
Knudson/NNP
,/,
now/RB
at/IN
Fox/NNP
Chase/NNP
Cancer/NNP
Research/NNP
Center/NNP
in/IN
Philadelphia/NNP
./.
``/``
I/PRP
was/VBD
convinced/VBN
that/IN
what/WP
was/VBD
true/JJ
of/IN
retinoblastoma/NN
would/MD
be/VB
true/JJ
for/IN
all/DT
cancers/NNS
./.
''/''
It/PRP
was/VBD
an/DT
audacious/JJ
claim/NN
./.
But/CC
in/IN
Baltimore/NNP
,/,
Dr./NNP
Vogelstein/NNP
,/,
a/DT
young/JJ
molecular/JJ
biologist/NN
at/IN
Johns/NNP
Hopkins/NNP
Medical/NNP
School/NNP
,/,
believed/VBD
Dr./NNP
Knudson/NNP
was/VBD
right/JJ
,/,
and/CC
set/VBD
out/RP
to/TO
repeat/VB
the/DT
Cavenee/NNP
experiment/NN
in/IN
cells/NNS
from/IN
other/JJ
cancers/NNS
./.
His/PRP$
was/VBD
one/CD
of/IN
two/CD
research/NN
teams/NNS
in/IN
1984/CD
to/TO
report/VB
dual/JJ
chromosome/NN
losses/NNS
for/IN
a/DT
rare/JJ
childhood/NN
cancer/NN
of/IN
the/DT
kidney/NN
called/VBN
Wilm/NNP
's/POS
tumor/NN
./.
Dr./NNP
Vogelstein/NNP
next/JJ
turned/VBD
his/PRP$
attention/NN
to/TO
colon/NN
cancer/NN
,/,
the/DT
second/JJ
biggest/JJS
cancer/NN
killer/NN
in/IN
the/DT
U.S./NNP
after/IN
lung/NN
cancer/NN
./.
He/PRP
believed/VBD
colon/NN
cancer/NN
might/MD
also/RB
arise/VB
from/IN
multiple/JJ
``/``
hits/NNS
''/''
on/IN
cancer/NN
suppressor/NN
genes/NNS
,/,
because/IN
it/PRP
often/RB
seems/VBZ
to/TO
develop/VB
in/IN
stages/NNS
./.
It/PRP
often/RB
is/VBZ
preceded/VBN
by/IN
the/DT
development/NN
of/IN
polyps/NNS
in/IN
the/DT
bowel/NN
,/,
which/WDT
in/IN
some/DT
cases/NNS
become/VBP
increasingly/RB
malignant/JJ
in/IN
identifiable/JJ
stages/NNS
--/:
progressing/VBG
from/IN
less/RBR
severe/JJ
to/TO
deadly/JJ
--/:
as/IN
though/IN
a/DT
cascade/NN
of/IN
genetic/JJ
damage/NN
might/MD
be/VB
occurring/VBG
./.
Dr./NNP
Vogelstein/NNP
and/CC
a/DT
doctoral/JJ
student/NN
,/,
Eric/NNP
Fearon/NNP
,/,
began/VBD
months/NNS
of/IN
tedious/JJ
and/CC
often/RB
frustrating/JJ
probing/VBG
of/IN
the/DT
chromosomes/NNS
searching/VBG
for/IN
signs/NNS
of/IN
genetic/JJ
damage/NN
./.
They/PRP
began/VBD
uncovering/VBG
a/DT
confusing/JJ
variety/NN
of/IN
genetic/JJ
deletions/NNS
,/,
some/DT
existing/VBG
only/RB
in/IN
benign/JJ
polyps/NNS
,/,
others/NNS
in/IN
malignant/JJ
cells/NNS
and/CC
many/JJ
in/IN
both/DT
polyps/NNS
and/CC
malignant/JJ
cells/NNS
./.
Gradually/RB
,/,
a/DT
coherent/JJ
picture/NN
of/IN
cancer/NN
development/NN
emerged/VBD
./.
If/IN
both/DT
copies/NNS
of/IN
a/DT
certain/JJ
gene/NN
were/VBD
knocked/VBN
out/RP
,/,
benign/JJ
polyps/NNS
would/MD
develop/VB
./.
If/IN
both/DT
copies/NNS
of/IN
a/DT
second/JJ
gene/NN
were/VBD
then/RB
deleted/VBN
,/,
the/DT
polyps/NNS
would/MD
progress/VB
to/TO
malignancy/NN
./.
It/PRP
was/VBD
clear/JJ
that/IN
more/JJR
than/IN
one/CD
gene/NN
had/VBD
to/TO
be/VB
damaged/VBN
for/IN
colon/NN
cancer/NN
to/TO
develop/VB
./.
Their/PRP$
report/NN
galvanized/VBD
other/JJ
molecular/JJ
biologists/NNS
./.
``/``
It/PRP
was/VBD
the/DT
confirming/VBG
evidence/NN
we/PRP
all/DT
needed/VBD
that/IN
{/(
gene/NN
losses/NNS
were/VBD
critical/JJ
to/TO
the/DT
development/NN
of/IN
a/DT
common/JJ
tumor/NN
,/,
''/''
says/VBZ
Ray/NNP
White/NNP
at/IN
Howard/NNP
Hughes/NNP
Medical/NNP
Institute/NNP
in/IN
Salt/NNP
Lake/NNP
City/NNP
./.
But/CC
Dr./NNP
Vogelstein/NNP
had/VBD
yet/RB
to/TO
nail/VB
the/DT
identity/NN
of/IN
the/DT
gene/NN
that/IN
,/,
if/IN
damaged/VBN
,/,
flipped/VBD
a/DT
colon/NN
cell/NN
into/IN
full-blown/JJ
malignancy/NN
./.
They/PRP
focused/VBD
on/IN
chromosome/NN
17/CD
./.
For/IN
months/NNS
the/DT
Johns/NNP
Hopkins/NNP
researchers/NNS
,/,
using/VBG
gene/NN
probes/NNS
,/,
experimentally/RB
crawled/VBD
down/RB
the/DT
length/NN
of/IN
chromosome/NN
17/CD
,/,
looking/VBG
for/IN
the/DT
smallest/JJS
common/JJ
bit/NN
of/IN
genetic/JJ
material/NN
lost/VBN
in/IN
all/DT
tumor/NN
cells/NNS
./.
Such/JJ
a/DT
piece/NN
of/IN
DNA/NNP
would/MD
probably/RB
constitute/VB
a/DT
gene/NN
./.
When/WRB
they/PRP
found/VBD
it/PRP
last/JJ
winter/NN
,/,
Dr./NNP
Vogelstein/NNP
was/VBD
dubious/JJ
that/IN
the/DT
search/NN
was/VBD
over/RB
./.
His/PRP$
doubts/NNS
stemmed/VBD
from/IN
the/DT
fact/NN
that/IN
several/JJ
years/NNS
earlier/RBR
a/DT
Princeton/NNP
University/NNP
researcher/NN
,/,
Arnold/NNP
Levine/NNP
,/,
had/VBD
found/VBN
in/IN
experiments/NNS
with/IN
mice/NNS
that/IN
a/DT
gene/NN
called/VBN
p53/NN
could/MD
transform/VB
normal/JJ
cells/NNS
into/IN
cancerous/JJ
ones/NNS
./.
The/DT
deletion/NN
Dr./NNP
Vogelstein/NNP
found/VBD
was/VBD
in/IN
exactly/RB
the/DT
same/JJ
spot/NN
as/IN
p53/NN
./.
But/CC
Mr./NNP
Levine/NNP
had/VBD
said/VBD
the/DT
p53/NN
gene/NN
caused/VBD
cancer/NN
by/IN
promoting/VBG
growth/NN
,/,
whereas/IN
the/DT
Johns/NNP
Hopkins/NNP
scientists/NNS
were/VBD
looking/VBG
for/IN
a/DT
gene/NN
that/WDT
suppressed/VBD
growth/NN
./.
Despite/IN
that/DT
,/,
when/WRB
the/DT
Johns/NNP
Hopkins/NNP
scientists/NNS
compared/VBD
the/DT
gene/NN
they/PRP
had/VBD
found/VBN
in/IN
the/DT
human/JJ
cancer/NN
cells/NNS
with/IN
the/DT
Mr./NNP
Levine/NNP
's/POS
p53/NN
gene/NN
they/PRP
found/VBD
the/DT
two/CD
were/VBD
identical/JJ
;/:
it/PRP
turned/VBD
out/RP
that/IN
in/IN
Mr./NNP
Levine/NNP
's/POS
cancer/NN
studies/NNS
,/,
he/PRP
had/VBD
unknowingly/RB
been/VBN
observing/VBG
a/DT
damaged/VBN
form/NN
of/IN
p53/NN
--/:
a/DT
cancer-suppressing/JJ
gene/NN
./.
The/DT
discovery/NN
``/``
suddenly/RB
puts/VBZ
an/DT
obscure/JJ
gene/NN
right/NN
in/IN
the/DT
cockpit/NN
of/IN
cancer/NN
formation/NN
,/,
''/''
says/VBZ
Robert/NNP
Weinberg/NNP
,/,
a/DT
leader/NN
in/IN
cancer-gene/JJ
research/NN
at/IN
Whitehead/NNP
Institute/NNP
in/IN
Cambridge/NNP
,/,
Mass/NNP
./.
Evidence/NN
now/RB
is/VBZ
emerging/VBG
that/IN
the/DT
p53/NN
suppressor/NN
gene/NN
is/VBZ
involved/VBN
in/IN
other/JJ
cancers/NNS
,/,
too/RB
./.
Researchers/NNP
in/IN
Edinburgh/NNP
,/,
Scotland/NNP
,/,
have/VBP
found/VBN
that/IN
in/IN
23/CD
of/IN
38/CD
breast/NN
tumors/NNS
,/,
one/CD
copy/NN
of/IN
chromosome/NN
17/CD
was/VBD
mutated/VBN
at/IN
the/DT
spot/NN
where/WRB
gene/NN
p53/NN
lies/NNS
./.
The/DT
scientists/NNS
say/VBP
that/IN
since/IN
breast/NN
cancer/NN
often/RB
strikes/VBZ
multiple/JJ
members/NNS
of/IN
certain/JJ
families/NNS
,/,
the/DT
gene/NN
,/,
when/WRB
inherited/VBN
in/IN
a/DT
damaged/VBN
form/NN
,/,
may/MD
predispose/VB
women/NNS
to/TO
the/DT
cancer/NN
./.
The/DT
p53/NN
gene/NN
has/VBZ
just/RB
been/VBN
implicated/VBN
in/IN
lung/NN
cancer/NN
./.
In/IN
a/DT
report/NN
out/IN
last/JJ
week/NN
,/,
John/NNP
Minna/NNP
and/CC
colleagues/NNS
at/IN
the/DT
National/NNP
Cancer/NNP
Institute/NNP
say/VBP
that/IN
about/RB
half/PDT
the/DT
cells/NNS
taken/VBN
from/IN
lung/NN
cancer/NN
tissue/NN
they/PRP
tested/VBD
are/VBP
missing/VBG
this/DT
gene/NN
./.
There/EX
also/RB
are/VBP
reports/NNS
from/IN
several/JJ
labs/NNS
,/,
as/RB
yet/RB
unpublished/JJ
,/,
of/IN
missing/VBG
p53/NN
genes/NNS
in/IN
tissue/NN
taken/VBN
from/IN
kidney/NN
,/,
brain/NN
and/CC
skin/NN
cancers/NNS
./.
At/IN
the/DT
same/JJ
time/NN
,/,
the/DT
Johns/NNP
Hopkins/NNP
team/NN
and/CC
others/NNS
are/VBP
rushing/VBG
to/TO
pinpoint/VB
other/JJ
tumor-suppressor/JJ
genes/NNS
./.
Dr./NNP
Vogelstein/NNP
hopes/VBZ
soon/RB
to/TO
isolate/VB
one/CD
on/IN
chromosome/NN
18/CD
,/,
also/RB
involved/VBN
in/IN
colon/NN
cancer/NN
./.
Ray/NNP
White/NNP
in/IN
Utah/NNP
and/CC
Walter/NNP
Bodmer/NNP
,/,
a/DT
researcher/NN
in/IN
Great/JJ
Britain/NNP
,/,
are/VBP
close/JJ
to/TO
finding/VBG
another/DT
gene/NN
involved/VBN
with/IN
some/DT
types/NNS
of/IN
colon/NN
cancer/NN
,/,
thought/VBN
to/TO
be/VB
on/IN
chromosome/NN
5/CD
./.
Dr./NNP
Minna/NNP
believes/VBZ
people/NNS
who/WP
inherit/VBP
a/DT
defective/JJ
gene/NN
somewhere/RB
on/IN
one/CD
of/IN
their/PRP$
two/CD
copies/NNS
of/IN
chromosome/NN
3/CD
are/VBP
especially/RB
prone/JJ
to/TO
lung/NN
cancer/NN
./.
Recently/RB
,/,
he/PRP
and/CC
others/NNS
reported/VBN
that/IN
the/DT
retinoblastoma/NN
suppressor/NN
gene/NN
may/MD
also/RB
be/VB
involved/VBN
in/IN
some/DT
lung/NN
cancers/NNS
,/,
as/RB
well/RB
as/IN
several/JJ
other/JJ
more/JJR
common/JJ
cancers/NNS
,/,
too/RB
./.
Where/WRB
these/DT
discoveries/NNS
will/MD
lead/VB
,/,
scientists/NNS
can/MD
only/RB
speculate/VB
./.
Already/RB
two/CD
major/JJ
pharmaceutical/JJ
companies/NNS
,/,
the/DT
Squibb/NNP
unit/NN
of/IN
Bristol-Myers/NNP
Squibb/NNP
Co./NNP
and/CC
Hoffmann-La/NNP
Roche/NNP
Inc./NNP
,/,
are/VBP
collaborating/VBG
with/IN
gene/NN
hunters/NNS
to/TO
turn/VB
the/DT
anticipated/VBN
cascade/NN
of/IN
discoveries/NNS
into/IN
predictive/JJ
tests/NNS
and/CC
,/,
maybe/RB
,/,
new/JJ
therapies/NNS
./.
Some/DT
researchers/NNS
say/VBP
new/JJ
cancer/NN
drugs/NNS
to/TO
slow/VB
or/CC
reverse/VB
tumor/NN
growth/NN
may/MD
be/VB
based/VBN
on/IN
the/DT
suppressor/NN
proteins/NNS
normally/RB
produced/VBN
by/IN
the/DT
genes/NNS
./.
The/DT
idea/NN
would/MD
be/VB
to/TO
administer/VB
to/TO
patients/NNS
the/DT
growth-controlling/JJ
proteins/NNS
made/VBN
by/IN
healthy/JJ
versions/NNS
of/IN
the/DT
damaged/VBN
genes/NNS
./.
It/PRP
may/MD
even/RB
be/VB
possible/JJ
to/TO
replace/VB
defective/JJ
genes/NNS
with/IN
healthy/JJ
versions/NNS
,/,
though/IN
no/DT
one/PRP
has/VBZ
come/VBN
close/RB
to/TO
doing/VBG
that/DT
so/RB
far/RB
./.
In/IN
any/DT
case/NN
,/,
says/VBZ
Dr./NNP
Minna/NNP
of/IN
the/DT
National/NNP
Cancer/NNP
Institute/NNP
,/,
``/``
We/PRP
're/VBP
witnessing/VBG
the/DT
discovery/NN
of/IN
one/CD
of/IN
the/DT
most/RBS
important/JJ
steps/NNS
in/IN
the/DT
genesis/NN
of/IN
cancer/NN
./.
''/''
Many/JJ
investors/NNS
give/VBP
Michael/NNP
Foods/NNP
about/RB
as/RB
much/JJ
chance/NN
of/IN
getting/VBG
it/PRP
together/RB
as/IN
Humpty/NNP
Dumpty/NNP
./.
But/CC
now/RB
at/IN
least/JJS
there/EX
's/VBZ
a/DT
glimmer/NN
of/IN
hope/NN
for/IN
the/DT
stock/NN
./.
Burger/NNP
King/NNP
,/,
which/WDT
breaks/VBZ
thousands/NNS
of/IN
fresh/JJ
eggs/NNS
each/DT
morning/NN
,/,
is/VBZ
quietly/RB
switching/VBG
over/RP
to/TO
an/DT
alternative/JJ
egg/NN
product/NN
made/VBN
by/IN
Michael/NNP
Foods/NNP
./.
Known/VBN
as/IN
Easy/NNP
Eggs/NNP
,/,
the/DT
product/NN
has/VBZ
disappointed/VBN
investors/NNS
./.
When/WRB
the/DT
company/NN
this/DT
month/NN
announced/VBD
lower-than-forecast/JJ
sales/NNS
of/IN
Easy/NNP
Eggs/NNP
,/,
the/DT
stock/NN
dropped/VBD
nearly/RB
19/CD
%/NN
./.
Michael/NNP
wo/MD
n't/RB
confirm/VB
the/DT
identities/NNS
of/IN
any/DT
Easy/NNP
Egg/NNP
customers/NNS
,/,
nor/CC
will/MD
it/PRP
say/VB
much/JJ
of/IN
anything/NN
else/RB
./.
Two/CD
Minneapolis/NNP
shareholder/NN
suits/NNS
in/IN
the/DT
past/JJ
month/NN
have/VBP
accused/VBN
top/JJ
officers/NNS
of/IN
making/VBG
``/``
various/JJ
untrue/JJ
statements/NNS
./.
''/''
These/DT
federal-court/JJ
suits/NNS
accuse/VBP
the/DT
officers/NNS
of/IN
failing/VBG
to/TO
disclose/VB
that/IN
Easy/NNP
Eggs/NNP
were/VBD
unlikely/JJ
to/TO
sell/VB
briskly/RB
enough/RB
to/TO
justify/VB
all/DT
of/IN
Michael/NNP
's/POS
production/NN
capacity/NN
./.
But/CC
at/IN
least/JJS
Burger/NNP
King/NNP
has/VBZ
signed/VBN
on/RP
,/,
and/CC
says/VBZ
that/IN
by/IN
year/NN
end/NN
it/PRP
wo/MD
n't/RB
be/VB
using/VBG
any/DT
shell/NN
eggs/NNS
./.
The/DT
Miami/NNP
fast-food/NN
chain/NN
,/,
owned/VBN
by/IN
Grand/NNP
Metropolitan/NNP
of/IN
Britain/NNP
,/,
expects/VBZ
to/TO
consume/VB
roughly/RB
34/CD
million/CD
pounds/NNS
of/IN
liquefied/VBN
eggs/NNS
annually/RB
./.
So/IN
there/EX
is/VBZ
reason/NN
to/TO
believe/VB
that/IN
Michael/NNP
's/POS
hopes/NNS
for/IN
a/DT
bacteria-free/JJ
,/,
long-shelf-life/JJ
egg/NN
were/VBD
n't/RB
all/DT
hype/NN
./.
Easy/NNP
Eggs/NNP
are/VBP
pasteurized/VBN
in/IN
a/DT
heat-using/JJ
process/NN
./.
caution/NN
is/VBZ
advisable/JJ
./.
A/DT
company/NN
official/NN
says/VBZ
Michael/NNP
's/POS
break-even/JJ
volume/NN
on/IN
Easy/NNP
Eggs/NNP
is/VBZ
around/RB
60/CD
million/CD
pounds/NNS
a/DT
year/NN
--/:
apparently/RB
well/RB
above/RB
current/JJ
shipments/NNS
and/CC
a/DT
far/JJ
cry/NN
from/IN
what/WP
the/DT
company/NN
once/RB
suggested/VBD
was/VBD
a/DT
billion-pound/JJ
market/NN
waiting/VBG
for/IN
such/JJ
a/DT
product/NN
./.
Perhaps/RB
to/TO
debunk/VB
the/DT
analysts/NNS
'/POS
talk/NN
of/IN
over-capacity/NN
,/,
Michael/NNP
today/NN
will/MD
take/VB
some/DT
of/IN
the/DT
skeptics/NNS
on/IN
a/DT
tour/NN
of/IN
its/PRP$
new/JJ
Gaylord/NNP
,/,
Minn./NNP
,/,
plant/NN
./.
There/EX
has/VBZ
been/VBN
no/DT
announcement/NN
of/IN
the/DT
Burger/NNP
King/NNP
arrangement/NN
by/IN
either/DT
party/NN
,/,
possibly/RB
for/IN
fear/NN
that/DT
McDonald/NNP
's/POS
and/CC
other/JJ
fast-food/NN
rivals/NNS
would/MD
seize/VB
on/IN
it/PRP
in/IN
scornful/JJ
advertising/NN
./.
But/CC
Burger/NNP
King/NNP
operators/NNS
independently/RB
confirm/VBP
using/VBG
Michael/NNP
's/POS
product/NN
./.
Other/JJ
institutional/JJ
users/NNS
reportedly/RB
include/VBP
Marriott/NNP
,/,
which/WDT
is/VBZ
moving/VBG
away/RB
from/IN
fresh/JJ
eggs/NNS
on/IN
a/DT
region-by-region/JJ
basis/NN
./.
The/DT
extent/NN
of/IN
Marriott/NNP
's/POS
use/NN
is/VBZ
n't/RB
known/VBN
,/,
and/CC
Marriott/NNP
officials/NNS
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
Michael/NNP
Foods/NNP
has/VBZ
attracted/VBN
a/DT
good/JJ
many/JJ
short-sellers/NNS
,/,
the/DT
people/NNS
who/WP
sell/VBP
borrowed/VBN
shares/NNS
in/IN
a/DT
bet/NN
that/IN
a/DT
stock/NN
price/NN
will/MD
drop/VB
and/CC
allow/VB
the/DT
return/NN
of/IN
cheaper/JJR
shares/NNS
to/TO
the/DT
lender/NN
./.
Many/JJ
analysts/NNS
question/VBP
management/NN
's/POS
credibility/NN
./.
``/``
The/DT
stock/NN
,/,
in/IN
my/PRP$
opinion/NN
,/,
is/VBZ
going/VBG
to/TO
go/VB
lower/RBR
,/,
not/RB
only/RB
because/IN
of/IN
disappointing/JJ
earnings/NNS
but/CC
{/(
because/IN
}/)
the/DT
credibility/NN
gap/NN
is/VBZ
certainly/RB
not/RB
closing/VBG
,/,
''/''
says/VBZ
L./NNP
Craig/NNP
Carver/NNP
of/IN
Dain/NNP
Bosworth/NNP
./.
Mr./NNP
Carver/NNP
says/VBZ
that/IN
at/IN
a/DT
recent/JJ
Dain-sponsored/JJ
conference/NN
in/IN
New/NNP
York/NNP
,/,
he/PRP
asked/VBD
Michael/NNP
's/POS
chief/JJ
executive/NN
officer/NN
if/IN
the/DT
fourth/JJ
quarter/NN
would/MD
be/VB
down/JJ
./.
The/DT
CEO/NNP
,/,
Richard/NNP
G./NNP
Olson/NNP
,/,
replied/VBD
``/``
yes/RB
,/,
''/''
but/CC
would/MD
n't/RB
elaborate/VB
./.
The/DT
company/NN
did/VBD
n't/RB
put/VBN
out/RB
a/DT
public/JJ
announcement/NN
./.
A/DT
spokesman/NN
said/VBD
later/RBR
that/IN
Mr./NNP
Olson/NNP
was/VBD
being/VBG
``/``
conservative/JJ
''/''
in/IN
his/PRP$
estimate/NN
./.
But/CC
the/DT
spokesman/NN
added/VBD
that/IN
while/IN
Michael/NNP
will/MD
earn/VB
less/JJR
than/IN
last/JJ
year/NN
's/POS
$/$
1.20/CD
a/DT
share/NN
,/,
it/PRP
thinks/VBZ
Street/NNP
estimates/NNS
of/IN
$/$
1/CD
or/CC
so/RB
are/VBP
low/JJ
./.
Analyst/NNP
Robin/NNP
Young/NNP
of/IN
John/NNP
Kinnard/NNP
&/CC
Co./NNP
,/,
Minneapolis/NNP
,/,
calls/VBZ
himself/PRP
``/``
the/DT
last/JJ
remaining/JJ
bull/NN
on/IN
the/DT
stock/NN
./.
''/''
He/PRP
argues/VBZ
that/IN
Michael/NNP
Foods/NNP
is/VBZ
misunderstood/VBN
:/:
``/``
This/DT
is/VBZ
a/DT
growth/NN
company/NN
in/IN
the/DT
packaged/VBN
food/NN
industry/NN
--/:
a/DT
rare/JJ
breed/NN
,/,
like/IN
finding/VBG
a/DT
white/JJ
rhino/NN
./.
''/''
Earnings/NNS
are/VBP
n't/RB
keeping/VBG
pace/NN
,/,
he/PRP
says/VBZ
,/,
because/IN
of/IN
heavy/NN
investments/NNS
in/IN
the/DT
egg/NN
technologies/NNS
and/CC
drought-related/JJ
costs/NNS
in/IN
its/PRP$
potato/NN
business/NN
./.
Mr./NNP
Carver/NNP
,/,
however/RB
,/,
believes/VBZ
the/DT
company/NN
's/POS
egg/NN
product/NN
wo/MD
n't/RB
help/VB
the/DT
bottom/JJ
line/NN
in/IN
the/DT
short/JJ
run/NN
,/,
even/RB
though/IN
it/PRP
``/``
makes/VBZ
sense/NN
--/:
it/PRP
's/VBZ
more/RBR
convenient/JJ
''/''
and/CC
justifies/VBZ
its/PRP$
price/NN
,/,
which/WDT
is/VBZ
higher/JJR
than/IN
shell/NN
eggs/NNS
,/,
because/IN
of/IN
health/NN
and/CC
sanitation/NN
concerns/NNS
./.
Prospective/JJ
competition/NN
is/VBZ
one/CD
problem/NN
./.
Last/JJ
week/NN
a/DT
closely/RB
held/VBN
New/NNP
Jersey/NNP
concern/NN
,/,
Papetti/NNP
High-Grade/NNP
Egg/NNP
Products/NNP
Co./NNP
,/,
rolled/VBD
out/RP
an/DT
aseptically/RB
packaged/VBN
liquefied/VBN
item/NN
called/VBN
Table/NNP
Ready/NNP
./.
Company/NNP
President/NNP
Steve/NNP
Papetti/NNP
says/VBZ
Marriott/NN
will/MD
be/VB
among/IN
his/PRP$
clients/NNS
as/RB
well/RB
./.
Michael/NNP
shares/NNS
closed/VBD
at/IN
13/CD
3\/4/CD
yesterday/NN
in/IN
national/JJ
over-the-counter/JJ
trading/NN
./.
Says/VBZ
New/NNP
York-based/JJ
short/JJ
seller/NN
Mark/NNP
Cohodes/NNP
,/,
``/``
In/IN
my/PRP$
mind/NN
this/DT
is/VBZ
a/DT
$/$
7/CD
stock/NN
./.
''/''
Michael/NNP
late/RB
yesterday/NN
announced/VBD
a/DT
$/$
3.8/CD
million/CD
stock/NN
buy-back/JJ
program/NN
./.
Michael/NNP
,/,
which/WDT
also/RB
processes/VBZ
potatoes/NNS
,/,
still/RB
relies/VBZ
on/IN
spuds/NNS
a/DT
fourth/JJ
of/IN
its/PRP$
sales/NNS
and/CC
nearly/RB
half/NN
its/PRP$
pretax/JJ
profit/NN
./.
But/CC
dry/JJ
growing/NN
conditions/NNS
in/IN
the/DT
Red/NNP
River/NNP
Valley/NNP
of/IN
Minnesota/NNP
and/CC
North/NNP
Dakota/NNP
are/VBP
pushing/VBG
spot/NN
prices/NNS
of/IN
potatoes/NNS
beyond/IN
what/WP
Michael/NNP
contracted/VBD
to/TO
pay/VB
last/JJ
spring/NN
./.
Company/NN
lawyers/NNS
recently/RB
sent/VBD
letters/NNS
to/TO
growers/NNS
saying/VBG
that/IN
Michael/NNP
``/``
would/MD
take/VB
very/RB
seriously/RB
any/DT
effort/NN
.../:
to/TO
divert/VB
its/PRP$
contracted-for/JJ
potatoes/NNS
to/TO
other/JJ
outlets/NNS
./.
''/''
Still/RB
,/,
analysts/NNS
believe/VBP
that/IN
profit/NN
margins/NNS
in/IN
the/DT
potato/NN
business/NN
will/MD
be/VB
down/RB
again/RB
this/DT
year/NN
./.
Pierre/NNP
Peladeau/NNP
,/,
a/DT
Canadian/JJ
newspaper/NN
publisher/NN
little-known/JJ
in/IN
the/DT
U.S./NNP
,/,
figures/VBZ
to/TO
become/VB
a/DT
big/JJ
player/NN
in/IN
North/JJ
American/JJ
printing/NN
--/:
and/CC
his/PRP$
ambitions/NNS
do/VBP
n't/RB
end/VB
there/RB
./.
Yesterday/NN
,/,
Quebecor/NNP
Inc./NNP
,/,
a/DT
Montreal/NNP
printing/NN
,/,
publishing/NN
and/CC
forest-products/NNS
company/NN
53%-owned/JJ
by/IN
Mr./NNP
Peladeau/NNP
,/,
agreed/VBD
to/TO
acquire/VB
Maxwell/NNP
Communication/NNP
Corp./NNP
's/POS
U.S./NNP
printing/NN
subsidiary/NN
,/,
Maxwell/NNP
Graphics/NNP
Inc./NNP
,/,
for/IN
$/$
500/CD
million/CD
in/IN
cash/NN
and/CC
securities/NNS
./.
The/DT
purchase/NN
,/,
expected/VBN
to/TO
be/VB
completed/VBN
by/IN
year/NN
end/NN
,/,
will/MD
make/VB
Quebecor/NNP
the/DT
second-largest/JJ
commercial/JJ
printer/NN
in/IN
North/NNP
America/NNP
,/,
behind/IN
only/JJ
R.R./NNP
Donnelley/NNP
&/CC
Sons/NNP
Co./NNP
,/,
Chicago/NNP
./.
The/DT
printing/NN
customers/NNS
that/DT
Quebecor/NNP
will/MD
gain/VB
through/IN
Maxwell/NNP
Graphics/NNP
include/VBP
the/DT
Sunday/NNP
newspaper/NN
supplement/NN
Parade/NNP
,/,
Time/NNP
,/,
Sports/NNP
Illustrated/NNP
and/CC
TV/NNP
Guide/NNP
./.
But/CC
the/DT
transaction/NN
is/VBZ
just/RB
Mr./NNP
Peladeau/NNP
's/POS
latest/JJS
step/NN
in/IN
a/DT
larger/JJR
design/NN
:/:
to/TO
build/VB
Quebecor/NNP
through/IN
acquisitions/NNS
into/IN
an/DT
integrated/VBN
paper/NN
,/,
publishing/NN
and/CC
printing/NN
concern/NN
with/IN
a/DT
reach/NN
throughout/IN
North/NNP
America/NNP
./.
He/PRP
already/RB
has/VBZ
achieved/VBN
vertical/JJ
integration/NN
on/IN
a/DT
limited/VBN
scale/NN
:/:
Quebecor/NNP
can/MD
put/VB
a/DT
weekly/JJ
newspaper/NN
on/IN
almost/RB
any/DT
Quebec/NNP
doorstep/NN
without/IN
using/VBG
outside/JJ
help/NN
,/,
from/IN
chopping/VBG
down/RP
the/DT
tree/NN
to/TO
making/VBG
the/DT
newsprint/NN
to/TO
flinging/VBG
it/PRP
up/IN
onto/IN
the/DT
porch/NN
./.
Analysts/NNS
say/VBP
Quebecor/NNP
's/POS
purchase/NN
is/VBZ
part/NN
of/IN
a/DT
trend/NN
toward/IN
consolidation/NN
in/IN
the/DT
North/JJ
American/JJ
printing/NN
industry/NN
./.
Along/IN
with/IN
Donnelley/NNP
,/,
says/VBZ
Jacques/NNP
Massicotte/NNP
,/,
an/DT
analyst/NN
with/IN
Nesbitt/NNP
Thomson/NNP
Deacon/NNP
Inc./NNP
in/IN
Montreal/NNP
,/,
``/``
Quebecor/NNP
has/VBZ
positioned/VBN
itself/PRP
as/IN
one/CD
of/IN
the/DT
two/CD
key/NN
players/NNS
./.
''/''
He/PRP
adds/VBZ
:/:
``/``
I/PRP
think/VBP
this/DT
is/VBZ
a/DT
great/JJ
strategic/JJ
move/NN
for/IN
Quebecor/NNP
./.
They/PRP
are/VBP
buying/VBG
an/DT
operation/NN
that/WDT
is/VBZ
running/VBG
well/RB
./.
''/''
Mr./NNP
Peladeau/NNP
says/VBZ
he/PRP
is/VBZ
n't/RB
trying/VBG
to/TO
catch/VB
up/RP
to/TO
Donnelley/NNP
,/,
which/WDT
has/VBZ
annual/JJ
sales/NNS
of/IN
over/IN
$/$
3/CD
billion/CD
./.
``/``
Size/NN
does/VBZ
n't/RB
matter/VB
,/,
''/''
Mr./NNP
Peladeau/NNP
says/VBZ
./.
``/``
What/WP
counts/VBZ
is/VBZ
the/DT
bottom/JJ
line/NN
./.
''/''
Some/DT
of/IN
Mr./NNP
Peladeau/NNP
's/POS
ventures/NNS
,/,
including/VBG
an/DT
earlier/JJR
push/NN
into/IN
the/DT
U.S./NNP
market/NN
,/,
have/VBP
n't/RB
paid/VBN
off/RP
on/IN
the/DT
bottom/JJ
line/NN
./.
Quebecor/NNP
started/VBD
the/DT
Philadelphia/NNP
Journal/NNP
,/,
a/DT
daily/JJ
tabloid/NN
,/,
in/IN
1977/CD
and/CC
closed/VBD
it/PRP
three/CD
years/NNS
later/RBR
./.
The/DT
venture/NN
cost/VBD
Quebecor/NNP
$/$
12/CD
million/CD
,/,
Mr./NNP
Peladeau/NNP
says/VBZ
./.
More/RBR
recently/RB
,/,
some/DT
former/JJ
Quebecor/NNP
executives/NNS
started/VBD
their/PRP$
own/JJ
printing/NN
company/NN
,/,
specializing/VBG
in/IN
printing/NN
and/CC
distributing/NN
advertising/NN
circulars/NNS
./.
Quebecor/NNP
still/RB
lags/VBZ
in/IN
the/DT
Quebec/NNP
circulars/NNS
market/NN
,/,
while/IN
Mr./NNP
Peladeau/NNP
's/POS
former/JJ
employees/NNS
are/VBP
expanding/VBG
across/IN
Canada/NNP
./.
Mr./NNP
Peladeau/NNP
took/VBD
his/PRP$
first/JJ
big/JJ
gamble/NN
25/CD
years/NNS
ago/RB
,/,
when/WRB
he/PRP
took/VBD
advantage/NN
of/IN
a/DT
strike/NN
at/IN
La/NNP
Presse/NNP
,/,
then/RB
Montreal/NNP
's/POS
dominant/JJ
French-language/JJ
newspaper/NN
,/,
to/TO
launch/VB
the/DT
Journal/NNP
de/IN
Montreal/NNP
./.
The/DT
tabloid/NN
's/POS
circulation/NN
soared/VBD
to/TO
80,000/CD
,/,
but/CC
plunged/VBD
to/TO
under/IN
10,000/CD
when/WRB
the/DT
La/NNP
Presse/NNP
strike/NN
ended/VBD
./.
Still/RB
,/,
Mr./NNP
Peladeau/NNP
stuck/VBD
with/IN
the/DT
venture/NN
./.
Now/RB
the/DT
Journal/NNP
,/,
flush/JJ
with/IN
ads/NNS
and/CC
hugely/RB
profitable/JJ
,/,
is/VBZ
even/RB
with/IN
La/NNP
Presse/NNP
in/IN
weekend/NN
circulation/NN
and/CC
outsells/VBZ
it/PRP
3/CD
to/TO
2/CD
every/DT
weekday/NN
./.
Mr./NNP
Peladeau/NNP
has/VBZ
never/RB
made/VBN
any/DT
apologies/NNS
for/IN
publishing/VBG
the/DT
tabloid/NN
,/,
a/DT
brash/JJ
mix/NN
of/IN
crime/NN
and/CC
sports/NNS
./.
``/``
I/PRP
've/VBP
read/VBN
Balzac/NNP
,/,
''/''
he/PRP
answers/VBZ
critics/NNS
./.
``/``
It/PRP
's/VBZ
tabloid/JJ
news/NN
from/IN
A/NN
to/TO
Z/NN
./.
''/''
Quebecor/NNP
also/RB
publishes/VBZ
a/DT
second/JJ
tabloid/NN
in/IN
Montreal/NNP
,/,
the/DT
struggling/VBG
18-month-old/JJ
Montreal/NNP
Daily/NNP
News/NNP
;/:
dailies/NNS
in/IN
Quebec/NNP
City/NNP
and/CC
Winnipeg/NNP
,/,
Manitoba/NNP
;/:
and/CC
dozens/NNS
of/IN
weeklies/NNS
covering/VBG
most/JJS
of/IN
Quebec/NNP
./.
A/DT
series/NN
of/IN
recent/JJ
acquisitions/NNS
made/VBD
it/PRP
the/DT
dominant/JJ
magazine/NN
publisher/NN
in/IN
Quebec/NNP
./.
After/IN
a/DT
recent/JJ
merger/NN
,/,
it/PRP
is/VBZ
also/RB
the/DT
only/JJ
province-wide/JJ
distributor/NN
of/IN
magazines/NNS
and/CC
newspapers/NNS
in/IN
Quebec/NNP
./.
Finally/RB
,/,
with/IN
Maxwell/NNP
Communication/NNP
,/,
the/DT
company/NN
controls/VBZ
54/CD
%/NN
of/IN
Donohue/NNP
Inc./NNP
,/,
a/DT
Quebec/NNP
City/NNP
pulp/NN
and/CC
paper/NN
concern/NN
./.
In/IN
yesterday/NN
's/POS
accord/NN
,/,
Quebecor/NNP
agreed/VBD
to/TO
pay/VB
$/$
400/CD
million/CD
in/IN
cash/NN
for/IN
Maxwell/NNP
Graphics/NNP
,/,
and/CC
to/TO
give/VB
Maxwell/NNP
Communication/NNP
a/DT
20/CD
%/NN
stake/NN
,/,
valued/VBN
at/IN
$/$
100/CD
million/CD
,/,
in/IN
Quebecor/NNP
's/POS
new/JJ
printing/NN
subsidiary/NN
./.
The/DT
new/JJ
,/,
as/RB
yet/RB
unnamed/JJ
,/,
subsidiary/NN
will/MD
combine/VB
Quebecor/NNP
's/POS
existing/VBG
printing/NN
unit/NN
and/CC
Maxwell/NNP
Graphics/NNP
./.
It/PRP
will/MD
have/VB
61/CD
plants/NNS
from/IN
coast/NN
to/TO
coast/NN
and/CC
$/$
1.5/CD
billion/CD
in/IN
annual/JJ
sales/NNS
./.
Quebecor/NNP
will/MD
own/VB
57.5/CD
%/NN
of/IN
the/DT
new/JJ
subsidiary/NN
./.
Caisse/NNP
de/IN
Depot/NNP
et/CC
Placement/NNP
,/,
the/DT
Quebec/NNP
government/NN
pension-fund/NN
agency/NN
,/,
will/MD
pay/VB
$/$
112.5/CD
million/CD
for/IN
the/DT
remaining/VBG
22.5/CD
%/NN
stake/NN
in/IN
the/DT
printing/NN
operation/NN
./.
Pierre-Karl/NNP
Peladeau/NNP
,/,
the/DT
founder/NN
's/POS
son/NN
and/CC
the/DT
executive/NN
in/IN
charge/NN
of/IN
the/DT
acquisition/NN
,/,
says/VBZ
Quebecor/NNP
has/VBZ
n't/RB
decided/VBD
how/WRB
it/PRP
will/MD
finance/VB
its/PRP$
share/NN
of/IN
the/DT
purchase/NN
,/,
but/CC
he/PRP
says/VBZ
it/PRP
most/RBS
likely/RB
will/MD
use/VB
debt/NN
./.
The/DT
Maxwell/NNP
deal/NN
is/VBZ
Quebecor/NNP
's/POS
second/JJ
big/JJ
printing/NN
acquisition/NN
in/IN
just/RB
over/IN
a/DT
year/NN
./.
Last/JJ
October/NNP
,/,
Quebecor/NNP
bought/VBD
23/CD
Canadian/NNP
printing/NN
plants/NNS
from/IN
BCE/NNP
Inc./NNP
,/,
a/DT
Montreal/NNP
telecommunications/NNS
,/,
manufacturing/NN
,/,
energy/NN
and/CC
real/JJ
estate/NN
company/NN
./.
That/DT
purchase/NN
doubled/VBD
Quebecor/NNP
's/POS
annual/JJ
printing/NN
revenue/NN
to/TO
$/$
750/CD
million/CD
./.
Maxwell/NNP
's/POS
sale/NN
of/IN
its/PRP$
U.S./NNP
printing/NN
unit/NN
was/VBD
expected/VBN
,/,
the/DT
last/JJ
major/JJ
business/NN
to/TO
be/VB
disposed/VBN
of/RP
in/IN
a/DT
major/JJ
reshuffling/VBG
of/IN
assets/NNS
./.
According/VBG
to/TO
its/PRP$
most/RBS
recent/JJ
annual/JJ
report/NN
,/,
covering/VBG
the/DT
15/CD
months/NNS
ended/VBD
March/NNP
31/CD
,/,
Maxwell/NNP
Communication/NNP
bought/VBD
$/$
3.85/CD
billion/CD
in/IN
assets/NNS
--/:
including/VBG
Macmillan/NNP
Inc./NNP
and/CC
Official/NNP
Airlines/NNP
Guides/NNP
--/:
and/CC
sold/VBD
$/$
2/CD
billion/CD
in/IN
non-strategic/JJ
businesses/NNS
./.
Now/RB
,/,
Maxwell/NNP
founder/NN
Robert/NNP
Maxwell/NNP
says/VBZ
he/PRP
has/VBZ
an/DT
appetite/NN
for/IN
new/JJ
acquisitions/NNS
in/IN
the/DT
U.S./NNP
,/,
adding/VBG
that/IN
he/PRP
could/MD
spend/VB
``/``
a/DT
good/JJ
deal/NN
more/JJR
''/''
than/IN
$/$
1/CD
billion/CD
on/IN
another/DT
U.S./NNP
purchase/NN
./.
In/IN
London/NNP
trading/NN
yesterday/NN
,/,
Maxwell/NNP
Communication/NNP
shares/NNS
rose/VBD
nine/CD
pence/NN
,/,
to/TO
216/CD
pence/NN
$/$
3.41/CD
In/IN
Montreal/NNP
,/,
Quebecor/NNP
's/POS
multiple/JJ
voting/NN
Class/NN
A/NN
stock/NN
closed/VBD
at/IN
C$/$
16.375/CD
US$/$
13.94/CD
12.5/CD
Canadian/JJ
cents/NNS
./.
Quebecor/NNP
Class/NN
B/NN
stock/NN
closed/VBD
at/IN
C$/$
15.375/CD
,/,
up/RB
62.5/CD
Canadian/JJ
cents/NNS
./.
Craig/NNP
Forman/NNP
in/IN
London/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
G.D./NNP
Searle/NNP
&/CC
Co./NNP
said/VBD
the/DT
Food/NNP
and/CC
Drug/NNP
Administration/NNP
approved/VBD
the/DT
sale/NN
of/IN
Kerlone/NNP
,/,
a/DT
hypertension/NN
drug/NN
developed/VBN
by/IN
a/DT
joint/JJ
venture/NN
between/IN
Searle/NNP
and/CC
a/DT
French/JJ
concern/NN
./.
Searle/NNP
,/,
a/DT
unit/NN
of/IN
Monsanto/NNP
Co./NNP
,/,
said/VBD
the/DT
``/``
beta-blocker/NN
''/''
high-blood-pressure/JJ
drug/NN
Kerlone/NNP
is/VBZ
the/DT
first/JJ
product/NN
to/TO
reach/VB
the/DT
market/NN
through/IN
Lorex/NNP
Pharmaceuticals/NNP
,/,
the/DT
U.S./NNP
company/NN
jointly/RB
owned/VBN
by/IN
Searle/NNP
and/CC
Synthelabo/NNP
,/,
a/DT
French/JJ
pharmaceutical/JJ
concern/NN
owned/VBN
by/IN
France/NNP
's/POS
L'Oreal/NNP
S.A/NNP
./.
The/DT
U.S./NNP
Equal/NNP
Employment/NNP
Opportunity/NNP
Commission/NNP
sued/VBD
New/NNP
York/NNP
state/NN
for/IN
age/NN
discrimination/NN
against/IN
appointed/VBN
state/NN
judges/NNS
./.
The/DT
suit/NN
,/,
filed/VBN
in/IN
federal/JJ
court/NN
in/IN
Manhattan/NNP
,/,
charges/VBZ
that/IN
New/NNP
York/NNP
's/POS
mandatory/JJ
retirement/NN
age/NN
of/IN
76/CD
violates/VBZ
federal/JJ
law/NN
./.
Separately/RB
,/,
the/DT
commission/NN
intervened/VBD
in/IN
a/DT
Connecticut/NNP
state/NN
judge/NN
's/POS
age-bias/JJ
suit/NN
in/IN
federal/JJ
court/NN
in/IN
New/NNP
Haven/NNP
./.
The/DT
commission/NN
's/POS
filing/NN
in/IN
that/DT
case/NN
challenges/VBZ
Connecticut/NNP
's/POS
mandatory/JJ
retirement/NN
age/NN
of/IN
70/CD
for/IN
appointed/VBN
judges/NNS
./.
The/DT
New/NNP
York/NNP
suit/NN
was/VBD
filed/VBN
on/IN
behalf/NN
of/IN
Justice/NNP
Isaac/NNP
Rubin/NNP
,/,
whose/WP$
appointment/NN
to/TO
the/DT
state/NN
appellate/JJ
division/NN
expires/VBZ
at/IN
year/NN
end/NN
,/,
and/CC
all/DT
other/JJ
judges/NNS
hurt/VBN
by/IN
the/DT
alleged/VBN
age/NN
discrimination/NN
./.
The/DT
suit/NN
,/,
assigned/VBN
to/TO
federal/JJ
Judge/NNP
Kimba/NNP
Wood/NNP
,/,
seeks/VBZ
a/DT
permanent/JJ
injunction/NN
,/,
back/JJ
pay/NN
for/IN
judges/NNS
who/WP
have/VBP
been/VBN
forced/VBN
to/TO
retire/VB
,/,
reinstatement/NN
of/IN
retired/VBN
judges/NNS
and/CC
``/``
other/JJ
affirmative/JJ
relief/NN
necessary/JJ
to/TO
eradicate/VB
the/DT
effects/NNS
of/IN
(/(
New/NNP
York/NNP
's/POS
unlawful/JJ
employment/NN
practices/NNS
./.
''/''
Justice/NNP
Rubin/NNP
,/,
a/DT
state/NN
judge/NN
since/IN
1969/CD
,/,
said/VBD
the/DT
mandatory-retirement/JJ
age/NN
hurts/VBZ
the/DT
court/NN
system/NN
because/IN
it/PRP
deprives/VBZ
the/DT
state/NN
of/IN
experienced/JJ
judges/NNS
still/RB
capable/JJ
of/IN
serving/VBG
on/IN
the/DT
bench/NN
./.
``/``
The/DT
issue/NN
is/VBZ
n't/RB
age/NN
--/:
age/NN
is/VBZ
just/RB
a/DT
number/NN
./.
The/DT
issue/NN
is/VBZ
one/CD
of/IN
a/DT
judge/NN
's/POS
experience/NN
,/,
his/PRP$
competence/NN
and/CC
his/PRP$
physical/JJ
ability/NN
to/TO
serve/VB
on/IN
the/DT
bench/NN
,/,
''/''
Justice/NNP
Rubin/NNP
said/VBD
./.
``/``
I/PRP
've/VBP
had/VBD
no/DT
problems/NNS
performing/VBG
my/PRP$
duties/NNS
and/CC
responsibilities/NNS
./.
''/''
Because/IN
Justice/NNP
Rubin/NNP
turned/VBD
76/CD
on/IN
May/NNP
9/CD
,/,
he/PRP
is/VBZ
n't/RB
eligible/JJ
to/TO
be/VB
reappointed/VBN
to/TO
the/DT
bench/NN
at/IN
the/DT
end/NN
of/IN
the/DT
year/NN
./.
The/DT
suit/NN
's/POS
impact/NN
on/IN
New/NNP
York/NNP
may/MD
be/VB
narrow/JJ
,/,
however/RB
./.
Most/JJS
New/NNP
York/NNP
judges/NNS
are/VBP
elected/VBN
,/,
and/CC
the/DT
federal/JJ
age-discrimination/JJ
law/NN
does/VBZ
n't/RB
apply/VB
to/TO
elected/VBN
officials/NNS
,/,
said/VBD
James/NNP
L./NNP
Lee/NNP
,/,
regional/JJ
attorney/NN
for/IN
the/DT
EEOC/NNP
in/IN
New/NNP
York/NNP
./.
Under/IN
New/NNP
York/NNP
law/NN
,/,
elected/VBN
judges/NNS
must/MD
retire/VB
at/IN
age/NN
70/CD
,/,
but/CC
then/RB
can/MD
be/VB
appointed/VBN
to/TO
two-year/JJ
terms/NNS
until/IN
they/PRP
reach/VBP
76/CD
./.
A/DT
spokeswoman/NN
for/IN
the/DT
state/NN
's/POS
Office/NNP
of/IN
Court/NNP
Administration/NNP
declined/VBD
to/TO
comment/VB
on/IN
the/DT
suit/NN
./.
But/CC
she/PRP
said/VBD
the/DT
state/NN
currently/RB
has/VBZ
35/CD
appointed/VBN
judges/NNS
who/WP
are/VBP
over/IN
70/CD
./.
In/IN
Connecticut/NNP
,/,
however/RB
,/,
most/JJS
state/NN
judges/NNS
are/VBP
appointed/VBN
by/IN
the/DT
governor/NN
and/CC
approved/VBD
by/IN
the/DT
state/NN
legislature/NN
./.
The/DT
parties/NNS
in/IN
the/DT
Connecticut/NNP
case/NN
have/VBP
agreed/VBN
to/TO
stay/VB
proceedings/NNS
pending/VBG
the/DT
appeal/NN
of/IN
another/DT
EEOC/NNP
age-bias/JJ
case/NN
against/IN
Vermont/NNP
./.
In/IN
the/DT
Vermont/NNP
case/NN
,/,
a/DT
federal/JJ
judge/NN
ruled/VBD
that/IN
the/DT
state/NN
's/POS
mandatory/JJ
age/NN
of/IN
70/CD
for/IN
appointed/VBN
judges/NNS
was/VBD
illegal/JJ
;/:
Vermont/NNP
's/POS
appeal/NN
of/IN
that/DT
decision/NN
is/VBZ
pending/VBG
before/IN
the/DT
U.S./NNP
Second/NNP
Circuit/NNP
Court/NNP
of/IN
Appeals/NNP
in/IN
Manhattan/NNP
./.
Aaron/NNP
Ment/NNP
,/,
Connecticut/NNP
's/POS
chief/JJ
court/NN
administrator/NN
,/,
declined/VBD
to/TO
comment/VB
on/IN
the/DT
suit/NN
and/CC
the/DT
EEOC/NNP
's/POS
intervention/NN
./.
He/PRP
said/VBD
the/DT
state/NN
has/VBZ
165/CD
appointed/VBN
judges/NNS
and/CC
15/CD
``/``
trial/NN
referees/NNS
,/,
''/''
who/WP
are/VBP
former/JJ
judges/NNS
over/RB
age/NN
70/CD
and/CC
serve/VBP
a/DT
restricted/VBN
role/NN
on/IN
the/DT
bench/NN
./.
ORGANIZED/VBN
CRIME/NN
Strike/NN
Forces/NNS
likely/JJ
to/TO
be/VB
abolished/VBN
next/JJ
month/NN
./.
U.S./NNP
Attorney/NNP
General/NNP
Dick/NNP
Thornburgh/NNP
's/POS
plan/NN
to/TO
dissolve/VB
the/DT
14/CD
regional/JJ
organized-crime/NN
strike/NN
forces/NNS
is/VBZ
expected/VBN
to/TO
go/VB
into/IN
effect/NN
next/IN
month/NN
,/,
despite/IN
the/DT
opposition/NN
of/IN
Democratic/JJ
congressional/JJ
leaders/NNS
and/CC
lawyers/NNS
in/IN
the/DT
special/JJ
units/NNS
./.
The/DT
units/NNS
are/VBP
autonomous/JJ
from/IN
U.S./NNP
attorneys/NNS
'/POS
offices/NNS
and/CC
focus/VBP
exclusively/RB
on/IN
prosecuting/VBG
organized-crime/NN
cases/NNS
./.
In/IN
February/NNP
,/,
Mr./NNP
Thornburgh/NNP
announced/VBD
his/PRP$
plan/NN
to/TO
abolish/VB
the/DT
units/NNS
./.
He/PRP
says/VBZ
the/DT
strike-force/NN
lawyers/NNS
will/MD
work/VB
more/RBR
efficiently/RB
under/IN
the/DT
supervision/NN
of/IN
U.S./NNP
attorneys/NNS
./.
Mr./NNP
Thornburgh/NNP
will/MD
be/VB
free/JJ
to/TO
disband/VB
the/DT
strike/NN
forces/NNS
after/IN
Congress/NNP
approves/VBZ
a/DT
$/$
479/CD
million/CD
appropriation/NN
for/IN
federal/JJ
law-enforcement/NN
and/CC
drug-interdiction/NN
agencies/NNS
,/,
according/VBG
to/TO
David/NNP
Runkel/NNP
,/,
a/DT
Justice/NNP
Department/NNP
spokesman/NN
./.
The/DT
bill/NN
is/VBZ
expected/VBN
to/TO
pass/VB
in/IN
Congress/NNP
next/JJ
month/NN
./.
Congress/NNP
temporarily/RB
halted/VBD
Mr./NNP
Thornburgh/NNP
's/POS
effort/NN
with/IN
an/DT
appropriation/NN
resolution/NN
that/WDT
prohibited/VBD
him/PRP
from/IN
using/VBG
budgeted/VBN
funds/NNS
to/TO
implement/VB
his/PRP$
plan/NN
./.
Opponents/NNS
say/VBP
Mr./NNP
Thornburgh/NNP
's/POS
plan/NN
will/MD
needlessly/RB
break/VB
up/RP
longtime/JJ
,/,
tightly/RB
knit/VBN
crime-fighting/JJ
units/NNS
that/WDT
have/VBP
successfully/RB
prosecuted/VBN
major/JJ
organized-crime/NN
figures/NNS
./.
They/PRP
predict/VBP
that/DT
organized-crime/NN
activity/NN
will/MD
increase/VB
once/RB
the/DT
units/NNS
are/VBP
dissolved/VBN
and/CC
their/PRP$
responsibilities/NNS
transferred/VBN
to/TO
U.S./NNP
attorneys/NNS
'/POS
offices/NNS
./.
Some/DT
former/JJ
strike-force/NN
personnel/NNS
say/VBP
the/DT
units/NNS
have/VBP
already/RB
begun/VBN
to/TO
break/VB
up/RP
./.
The/DT
Eastern/NNP
District/NNP
unit/NN
in/IN
Brooklyn/NNP
,/,
N.Y./NNP
,/,
lost/VBD
seven/CD
of/IN
its/PRP$
15/CD
attorneys/NNS
this/DT
year/NN
partly/RB
because/IN
the/DT
lawyers/NNS
were/VBD
troubled/VBN
by/IN
the/DT
proposed/VBN
reorganization/NN
,/,
says/VBZ
Laura/NNP
A./NNP
Brevetti/NNP
,/,
who/WP
left/VBD
the/DT
strike/NN
force/NN
to/TO
join/VB
Morrison/NNP
Cohen/NNP
Singer/NNP
&/CC
Weinstein/NNP
,/,
a/DT
New/NNP
York/NNP
law/NN
firm/NN
./.
``/``
Those/DT
who/WP
have/VBP
left/VBN
have/VBP
expressed/VBN
an/DT
opinion/NN
that/IN
the/DT
strike/NN
force/NN
should/MD
continue/VB
,/,
''/''
Ms./NNP
Brevetti/NNP
says/VBZ
./.
But/CC
Mr./NNP
Runkel/NNP
contends/VBZ
there/EX
has/VBZ
been/VBN
no/DT
exodus/NN
of/IN
strike-force/NN
lawyers/NNS
./.
He/PRP
says/VBZ
27/CD
lawyers/NNS
have/VBP
left/VBN
and/CC
21/CD
have/VBP
been/VBN
hired/VBN
since/IN
Mr./NNP
Thornburgh/NNP
announced/VBD
his/PRP$
plan/NN
./.
At/IN
the/DT
time/NN
the/DT
plan/NN
was/VBD
announced/VBN
,/,
there/EX
were/VBD
135/CD
lawyers/NNS
./.
Some/DT
congressional/JJ
leaders/NNS
intend/VBP
to/TO
continue/VB
to/TO
fight/VB
for/IN
independent/JJ
strike/NN
forces/NNS
./.
A/DT
spokesman/NN
for/IN
Sen./NNP
Edward/NNP
M./NNP
Kennedy/NNP
D./NNP
,/,
Mass/NNP
./.
Mr./NNP
Thornburgh/NNP
would/MD
be/VB
required/VBN
to/TO
reinstate/VB
the/DT
units/NNS
next/IN
year/NN
if/IN
an/DT
proposed/VBN
omnibus/NN
crime/NN
bill/NN
is/VBZ
passed/VBN
./.
Among/IN
other/JJ
things/NNS
,/,
the/DT
bill/NN
calls/VBZ
for/IN
a/DT
reorganization/NN
of/IN
the/DT
Justice/NNP
Department/NNP
./.
The/DT
Senate/NNP
is/VBZ
expected/VBN
to/TO
consider/VB
the/DT
bill/NN
shortly/RB
,/,
says/VBZ
the/DT
senator/NN
's/POS
spokesman/NN
./.
Mr./NNP
Runkel/NNP
says/VBZ
he/PRP
doubts/VBZ
Mr./NNP
Kennedy/NNP
can/MD
muster/VB
enough/JJ
congressional/JJ
support/NN
to/TO
reorganize/VB
the/DT
Justice/NNP
Department/NNP
./.
``/``
We/PRP
will/MD
vigorously/RB
oppose/VB
the/DT
bill/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
I/PRP
do/VBP
n't/RB
think/VB
(/(
the/DT
reorganization/NN
is/VBZ
)/)
going/VBG
to/TO
happen/VB
./.
''/''
WHITMAN/NNP
&/CC
RANSOM/NNP
recruits/VBZ
lawyers/NNS
from/IN
disbanding/VBG
firm/NN
:/:
The/DT
204-lawyer/JJ
New/NNP
York/NNP
firm/NN
will/MD
bring/VB
in/RP
at/IN
least/JJS
12/CD
partners/NNS
and/CC
a/DT
not/RB
yet/RB
determined/VBN
number/NN
of/IN
associates/NNS
from/IN
Golenbock/NNP
&/CC
Barell/NNP
,/,
which/WDT
will/MD
dissolve/VB
Dec./NNP
31/CD
./.
Golenbock/NNP
,/,
with/IN
35/CD
lawyers/NNS
,/,
has/VBZ
lost/VBN
several/JJ
partners/NNS
during/IN
the/DT
past/JJ
year/NN
./.
Some/DT
Golenbock/NNP
lawyers/NNS
wo/MD
n't/RB
be/VB
invited/VBN
to/TO
join/VB
Whitman/NNP
&/CC
Ransom/NNP
,/,
according/VBG
to/TO
partners/NNS
at/IN
both/DT
firms/NNS
./.
Whitman/NNP
&/CC
Ransom/NNP
managing/NN
partner/NN
Maged/NNP
F./NNP
Riad/NNP
said/VBD
the/DT
Golenbock/NNP
recruits/NNS
will/MD
enhance/VB
the/DT
firm/NN
's/POS
corporate/JJ
and/CC
litigation/NN
departments/NNS
./.
SHORT/NNP
SKIRTS/NNP
not/RB
welcome/JJ
in/IN
Texas/NNP
court/NN
:/:
Shelly/NNP
Hancock/NNP
,/,
a/DT
male/JJ
county/NN
court/NN
judge/NN
in/IN
Houston/NNP
,/,
refused/VBD
to/TO
let/VB
a/DT
woman/NN
plead/VB
guilty/JJ
to/TO
a/DT
drunk-driving/JJ
charge/NN
because/IN
her/PRP$
skirt/NN
stopped/VBD
three/CD
inches/NNS
above/IN
her/PRP$
knees/NNS
./.
The/DT
woman/NN
appeared/VBD
in/IN
court/NN
Thursday/NNP
to/TO
enter/VB
her/PRP
plea/NN
,/,
but/CC
when/WRB
she/PRP
started/VBD
to/TO
approach/VB
the/DT
bench/NN
,/,
she/PRP
was/VBD
stopped/VBN
by/IN
Judge/NNP
Hancock/NNP
./.
He/PRP
told/VBD
the/DT
woman/NN
's/POS
lawyer/NN
,/,
Victor/NNP
Blaine/NNP
,/,
that/IN
the/DT
short/JJ
skirt/NN
was/VBD
inappropriate/JJ
for/IN
a/DT
court/NN
appearance/NN
./.
Despite/IN
Mr./NNP
Blaine/NNP
's/POS
protests/NNS
,/,
the/DT
judge/NN
rescheduled/VBD
her/PRP$
case/NN
for/IN
Nov./NNP
27/CD
./.
Kelly/NNP
Siegler/NNP
,/,
an/DT
assistant/JJ
district/NN
attorney/NN
who/WP
was/VBD
in/IN
the/DT
courtroom/NN
,/,
disputed/VBD
suggestions/NNS
the/DT
action/NN
was/VBD
sexist/JJ
,/,
saying/VBG
she/PRP
had/VBD
seen/VBN
Judge/NNP
Hancock/NNP
turn/VB
away/RB
male/JJ
defendants/NNS
dressed/VBN
in/IN
shorts/NNS
,/,
tank/NN
tops/NNS
or/CC
muscle/NN
shirts/NNS
``/``
many/JJ
times/NNS
./.
''/''
Judge/NNP
Hancock/NNP
did/VBD
n't/RB
return/VB
phone/NN
calls/NNS
./.
Warner/NNP
Communications/NNP
Inc./NNP
and/CC
Sony/NNP
Corp./NNP
resumed/VBD
settlement/NN
talks/NNS
on/IN
their/PRP$
legal/JJ
battle/NN
over/IN
Hollywood/NNP
producers/NNS
Peter/NNP
Guber/NNP
and/CC
Jon/NNP
Peters/NNP
,/,
but/CC
continued/VBD
to/TO
level/VB
strong/JJ
accusations/NNS
at/IN
each/DT
other/JJ
in/IN
legal/JJ
documents/NNS
./.
Warner/NNP
has/VBZ
filed/VBN
a/DT
$/$
1/CD
billion/CD
breach/NN
of/IN
contract/NN
suit/NN
in/IN
Los/NNP
Angeles/NNP
Superior/NNP
Court/NNP
against/IN
Sony/NNP
and/CC
the/DT
Guber-Peters/JJ
duo/NN
,/,
who/WP
in/IN
turn/NN
are/VBP
countersuing/VBG
Warner/NNP
for/IN
trying/VBG
to/TO
interfere/VB
in/IN
Sony/NNP
's/POS
acquisition/NN
of/IN
Columbia/NNP
Pictures/NNP
Entertainment/NNP
Inc./NNP
and/CC
Guber/NNP
Peters/NNP
Entertainment/NNP
Co./NNP
in/IN
two/CD
transactions/NNS
valued/VBN
at/IN
over/IN
$/$
5/CD
billion/CD
./.
Although/IN
settlement/NN
talks/NNS
had/VBD
been/VBN
dropped/VBN
,/,
attorneys/NNS
for/IN
the/DT
two/CD
sides/NNS
apparently/RB
began/VBD
talking/VBG
again/RB
yesterday/NN
in/IN
an/DT
attempt/NN
to/TO
settle/VB
the/DT
matter/NN
before/IN
Thursday/NNP
,/,
when/WRB
a/DT
judge/NN
is/VBZ
expected/VBN
to/TO
rule/VB
on/IN
Warner/NNP
's/POS
request/NN
for/IN
an/DT
injunction/NN
that/WDT
would/MD
block/VB
the/DT
two/CD
producers/NNS
from/IN
taking/VBG
over/RP
the/DT
management/NN
of/IN
Columbia/NNP
./.
Yesterday/NN
,/,
in/IN
documents/NNS
filed/VBN
in/IN
connection/NN
with/IN
that/DT
case/NN
,/,
Warner/NNP
accused/VBD
Sony/NNP
officials/NNS
of/IN
falsely/RB
claiming/VBG
that/IN
they/PRP
never/RB
read/VBD
the/DT
five-year/JJ
contract/NN
requiring/VBG
the/DT
two/CD
producers/NNS
to/TO
make/VB
movies/NNS
exclusively/RB
for/IN
Columbia/NNP
,/,
citing/VBG
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
filings/NNS
made/VBN
by/IN
Sony/NNP
that/WDT
described/VBD
the/DT
contracts/NNS
./.
Warner/NNP
was/VBD
referring/VBG
to/TO
documents/NNS
filed/VBN
last/JJ
week/NN
in/IN
which/WDT
Sony/NNP
Corp./NNP
of/IN
America/NNP
Vice/NNP
Chairman/NNP
Michael/NNP
Schulof/NNP
and/CC
Walter/NNP
Yetnikoff/NNP
,/,
president/NN
of/IN
its/PRP$
CBS/NNP
Records/NNP
unit/NN
,/,
said/VBD
they/PRP
had/VBD
taken/VBN
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
at/IN
their/PRP$
word/NN
when/WRB
the/DT
producers/NNS
told/VBD
them/PRP
that/IN
getting/VBG
out/RB
of/IN
the/DT
contract/NN
would/MD
be/VB
no/DT
problem/NN
because/IN
of/IN
a/DT
previous/JJ
oral/JJ
agreement/NN
./.
Wayne/NNP
Smith/NNP
,/,
an/DT
attorney/NN
at/IN
Gibson/NNP
,/,
Dunn/NNP
&/CC
Crutcher/NNP
in/IN
Los/NNP
Angeles/NNP
representing/VBG
Sony/NNP
,/,
said/VBD
the/DT
Sony/NNP
executives/NNS
had/VBD
n't/RB
seen/VBN
the/DT
contract/NN
because/IN
``/``
it/PRP
was/VBD
n't/RB
relevant/JJ
once/IN
Guber/NNP
and/CC
Peters/NNP
told/VBD
them/PRP
Warner/NNP
would/MD
let/VB
them/PRP
terminate/VB
it/PRP
at/IN
any/DT
time/NN
./.
''/''
Mr./NNP
Smith/NNP
said/VBD
statements/NNS
about/IN
the/DT
contract/NN
made/VBN
in/IN
SEC/NNP
filings/NNS
were/VBD
made/VBN
by/IN
attorneys/NNS
who/WP
did/VBD
have/VB
access/NN
to/TO
the/DT
contracts/NNS
but/CC
who/WP
were/VBD
n't/RB
part/NN
of/IN
the/DT
negotiations/NNS
between/IN
Sony/NNP
and/CC
the/DT
duo/NN
./.
Warner/NNP
executives/NNS
also/RB
filed/VBD
new/JJ
sworn/JJ
affidavits/NNS
denying/VBG
claims/NNS
by/IN
Messrs./NNS
Guber/NNP
and/CC
Peters/NNP
that/IN
the/DT
two/CD
sides/NNS
had/VBD
an/DT
oral/JJ
agreement/NN
that/WDT
enabled/VBD
the/DT
producers/NNS
to/TO
terminate/VB
their/PRP$
contract/NN
with/IN
Warner/NNP
should/MD
the/DT
opportunity/NN
to/TO
run/VB
a/DT
major/JJ
studio/NN
come/VBN
up/RP
./.
But/CC
Mr./NNP
Smith/NNP
said/VBD
Sony/NNP
intends/VBZ
to/TO
prove/VB
that/IN
the/DT
oral/JJ
agreement/NN
did/VBD
in/IN
fact/NN
exist/VB
,/,
and/CC
that/IN
even/RB
the/DT
existing/VBG
written/VBN
contract/NN
does/VBZ
n't/RB
preclude/VB
the/DT
producers/NNS
from/IN
taking/VBG
executive/JJ
posts/NNS
at/IN
another/DT
studio/NN
./.
Warner/NNP
described/VBD
as/IN
``/``
nonsense/NN
''/''
yesterday/NN
Sony/NNP
's/POS
assertions/NNS
in/IN
prior/JJ
court/NN
filings/NNS
that/IN
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
could/MD
in/IN
theory/NN
run/VBN
Columbia/NNP
while/IN
still/RB
fulfilling/VBG
their/PRP$
contract/NN
to/TO
produce/VB
movies/NNS
for/IN
Warner/NNP
./.
Such/JJ
a/DT
dual/JJ
role/NN
would/MD
be/VB
``/``
impractical/JJ
and/CC
unethical/JJ
,/,
''/''
Warner/NNP
said/VBD
,/,
adding/VBG
,/,
``/``
that/DT
concept/NN
is/VBZ
as/RB
silly/RB
as/IN
suggesting/VBG
that/IN
the/DT
head/JJ
coach/NN
of/IN
the/DT
Los/NNP
Angeles/NNP
Dodgers/NNP
could/MD
simultaneously/RB
be/VB
general/JJ
manager/NN
of/IN
the/DT
San/NNP
Francisco/NNP
Giants/NNP
./.
''/''
Warner/NNP
,/,
which/WDT
is/VBZ
in/IN
the/DT
process/NN
of/IN
being/VBG
acquired/VBN
by/IN
New/NNP
York-based/JJ
Time/NNP
Warner/NNP
Inc./NNP
,/,
also/RB
said/VBD
it/PRP
paid/VBD
the/DT
two/CD
producers/NNS
a/DT
fixed/VBN
annual/JJ
salary/NN
of/IN
$/$
3/CD
million/CD
./.
Dataproducts/NNP
Inc./NNP
said/VBD
it/PRP
filed/VBD
a/DT
lawsuit/NN
in/IN
Delaware/NNP
Chancery/NNP
Court/NNP
to/TO
block/VB
a/DT
tender/NN
offer/NN
by/IN
DPC/NNP
Acquisition/NNP
Partners/NNP
,/,
alleging/VBG
that/IN
the/DT
hostile/NN
offer/NN
violates/VBZ
a/DT
standstill/JJ
agreement/NN
between/IN
the/DT
two/CD
concerns/NNS
./.
DPC/NNP
,/,
an/DT
investor/NN
group/NN
led/VBN
by/IN
New/NNP
York-based/JJ
Crescott/NNP
Investment/NNP
Associates/NNP
,/,
had/VBD
itself/PRP
filed/VBD
a/DT
suit/NN
in/IN
state/NN
court/NN
in/IN
Los/NNP
Angeles/NNP
seeking/VBG
to/TO
nullify/VB
the/DT
agreement/NN
./.
Earlier/RBR
this/DT
year/NN
,/,
Dataproducts/NNP
had/VBD
rejected/VBN
a/DT
$/$
15/CD
a/DT
share/NN
offer/NN
from/IN
DPC/NNP
,/,
saying/VBG
it/PRP
was/VBD
n't/RB
adequately/RB
financed/VBN
./.
DPC/NNP
last/JJ
week/NN
launched/VBD
a/DT
new/JJ
,/,
$/$
10-a-share/JJ
offer/NN
for/IN
the/DT
Woodland/NNP
Hills/NNP
,/,
Calif.-based/JJ
computer/NN
printer/NN
maker/NN
./.
DPC/NNP
said/VBD
it/PRP
could/MD
n't/RB
comment/VB
on/IN
the/DT
suit/NN
./.
Boeing/NNP
Co./NNP
's/POS
third-quarter/JJ
profit/NN
leaped/VBD
68/CD
%/NN
,/,
but/CC
Wall/NNP
Street/NNP
's/POS
attention/NN
was/VBD
focused/VBN
on/IN
the/DT
picket/NN
line/NN
,/,
not/RB
the/DT
bottom/JJ
line/NN
./.
In/IN
fact/NN
,/,
the/DT
earnings/NNS
report/NN
unfolded/VBD
as/IN
representatives/NNS
of/IN
the/DT
world/NN
's/POS
No./NN
1/CD
jet/NN
maker/NN
and/CC
the/DT
striking/JJ
Machinists/NNS
union/NN
came/VBD
back/RB
to/TO
the/DT
negotiating/NN
table/NN
for/IN
their/PRP$
first/JJ
meeting/NN
in/IN
two/CD
weeks/NNS
./.
Doug/NNP
Hammond/NNP
,/,
the/DT
federal/JJ
mediator/NN
in/IN
Seattle/NNP
,/,
where/WRB
Boeing/VBG
is/VBZ
based/VBN
,/,
said/VBD
the/DT
parties/NNS
will/MD
continue/VB
to/TO
sit/VB
down/RP
daily/RB
until/IN
a/DT
new/JJ
settlement/NN
proposal/NN
emerges/VBZ
or/CC
the/DT
talks/NNS
break/VBP
off/RP
again/RB
./.
Despite/IN
the/DT
progress/NN
,/,
Boeing/VBG
indicated/VBD
that/IN
the/DT
work/NN
stoppage/NN
,/,
now/RB
in/IN
its/PRP$
27th/JJ
day/NN
,/,
will/MD
have/VB
``/``
a/DT
serious/JJ
adverse/JJ
impact/NN
''/''
on/IN
the/DT
current/JJ
quarter/NN
./.
For/IN
the/DT
third/JJ
quarter/NN
,/,
net/NN
rose/VBD
to/TO
$/$
242/CD
million/CD
,/,
or/CC
$/$
1.05/CD
a/DT
share/NN
,/,
from/IN
$/$
144/CD
million/CD
,/,
or/CC
63/CD
cents/NNS
a/DT
share/NN
./.
Sales/NNS
climbed/VBD
71/CD
%/NN
to/TO
$/$
6.36/CD
billion/CD
from/IN
$/$
3.72/CD
billion/CD
as/IN
the/DT
company/NN
capitalized/VBD
on/IN
the/DT
ravenous/JJ
global/JJ
demand/NN
for/IN
commercial/JJ
airliners/NNS
./.
Because/IN
it/PRP
's/VBZ
impossible/JJ
to/TO
gauge/VB
how/WRB
long/JJ
the/DT
walkout/NN
by/IN
55,000/CD
Machinists/NNS
rank/NN
and/CC
file/NN
will/MD
last/VB
,/,
the/DT
precise/JJ
impact/NN
on/IN
Boeing/VBG
's/POS
sales/NNS
,/,
earnings/NNS
,/,
cash/NN
flow/NN
and/CC
short-term/JJ
investment/NN
position/NN
could/MD
n't/RB
be/VB
determined/VBN
./.
The/DT
investment/NN
community/NN
,/,
however/RB
,/,
strongly/RB
believes/VBZ
that/IN
the/DT
strike/NN
will/MD
be/VB
settled/VBN
before/RB
there/EX
is/VBZ
any/DT
lasting/JJ
effect/NN
on/IN
either/CC
Boeing/NNP
or/CC
its/PRP$
work/NN
force/NN
./.
The/DT
company/NN
's/POS
total/JJ
firm/JJ
backlog/NN
of/IN
unfilled/JJ
orders/NNS
at/IN
Sept./NNP
30/CD
stood/VBD
at/IN
a/DT
mighty/JJ
$/$
69.1/CD
billion/CD
,/,
compared/VBN
with/IN
$/$
53.6/CD
billion/CD
at/IN
the/DT
end/NN
of/IN
Although/IN
the/DT
company/NN
could/MD
see/VB
fourth-quarter/JJ
revenue/NN
shrink/VB
by/IN
nearly/RB
$/$
5/CD
billion/CD
if/IN
it/PRP
is/VBZ
n't/RB
able/JJ
to/TO
deliver/VB
any/DT
more/JJR
planes/NNS
this/DT
year/NN
,/,
those/DT
dollars/NNS
actually/RB
would/MD
just/RB
be/VB
deferred/VBN
until/IN
1990/CD
./.
And/CC
the/DT
company/NN
is/VBZ
certain/JJ
to/TO
get/VB
out/RP
some/DT
aircraft/NN
with/IN
just/JJ
supervisors/NNS
and/CC
other/JJ
non-striking/JJ
employees/NNS
on/IN
hand/NN
./.
Before/IN
the/DT
union/NN
rejected/VBD
the/DT
company/NN
's/POS
offer/NN
and/CC
the/DT
strike/NN
was/VBD
launched/VBN
with/IN
the/DT
graveyard/NN
shift/NN
of/IN
Oct./NNP
4/CD
,/,
Boeing/NNP
had/VBD
been/VBN
counting/VBG
on/IN
turning/VBG
96/CD
aircraft/NN
out/RB
the/DT
door/NN
in/IN
the/DT
present/JJ
period/NN
./.
That/DT
included/VBD
21/CD
of/IN
the/DT
company/NN
's/POS
747-400/JJ
jumbo/JJ
jets/NNS
,/,
its/PRP$
most/RBS
successful/JJ
product/NN
./.
``/``
It/PRP
's/VBZ
not/RB
a/DT
pretty/JJ
picture/NN
,/,
''/''
said/VBD
David/NNP
Smith/NNP
,/,
an/DT
analyst/NN
with/IN
Raymond/NNP
James/NNP
&/CC
Associates/NNP
./.
``/``
But/CC
it/PRP
would/MD
just/RB
mean/VB
a/DT
great/JJ
first/JJ
and/CC
second/JJ
quarter/NN
next/JJ
year/NN
./.
''/''
Phillip/NNP
Brannon/NNP
of/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
added/VBD
:/:
``/``
You/PRP
do/VBP
n't/RB
want/VB
to/TO
minimize/VB
this/DT
and/CC
say/VB
nobody/NN
is/VBZ
looking/VBG
at/IN
it/PRP
./.
But/CC
the/DT
strike/NN
has/VBZ
n't/RB
gone/VBN
on/RB
long/RB
enough/RB
for/IN
Boeing/NNP
to/TO
lose/VB
business/NN
in/IN
any/DT
real/JJ
sense/NN
./.
''/''
That/DT
's/VBZ
the/DT
primary/JJ
reason/NN
the/DT
company/NN
's/POS
share/NN
price/NN
has/VBZ
held/VBN
up/RP
so/RB
well/RB
when/WRB
,/,
in/IN
Mr./NNP
Smith/NNP
's/POS
words/NNS
,/,
``/``
most/JJS
companies/NNS
would/MD
have/VB
unraveled/VBN
''/''
by/IN
now/RB
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Boeing/NNP
closed/VBD
yesterday/NN
at/IN
$/$
54.50/CD
a/DT
share/NN
,/,
off/RB
a/DT
scant/JJ
12.5/CD
cents/NNS
./.
Still/RB
,/,
Boeing/NNP
went/VBD
through/IN
its/PRP$
normal/JJ
verbal/JJ
gymnastics/NNS
and/CC
played/VBD
up/RP
the/DT
downside/NN
./.
In/IN
a/DT
statement/NN
,/,
Chairman/NNP
Frank/NNP
Shrontz/NNP
asserted/VBD
that/IN
the/DT
company/NN
``/``
faces/VBZ
significant/JJ
challenges/NNS
and/CC
risks/NNS
,/,
''/''
on/IN
both/DT
its/PRP$
commercial/NN
and/CC
government/NN
contracts/NNS
./.
For/IN
instance/NN
,/,
he/PRP
noted/VBD
that/IN
spending/VBG
on/IN
Pentagon/NNP
programs/NNS
is/VBZ
shrinking/VBG
,/,
and/CC
Boeing/NNP
is/VBZ
either/CC
the/DT
prime/JJ
contractor/NN
or/CC
a/DT
major/JJ
supplier/NN
on/IN
many/JJ
important/JJ
military/JJ
projects/NNS
,/,
including/VBG
the/DT
B-2/NNP
Stealth/NNP
bomber/NN
,/,
the/DT
V-22/NNP
Osprey/NNP
tilt-rotor/JJ
aircraft/NN
and/CC
the/DT
Air/NNP
Force/NNP
's/POS
next-generation/JJ
tactical/JJ
fighter/NN
./.
Because/IN
of/IN
cost/NN
overruns/NNS
on/IN
fixed-price/JJ
military/JJ
work/NN
,/,
Mr./NNP
Shrontz/NNP
said/VBD
,/,
the/DT
company/NN
's/POS
defense/NN
business/NN
will/MD
record/VB
``/``
a/DT
significant/JJ
loss/NN
''/''
in/IN
1989/CD
./.
Moreover/RB
,/,
Mr./NNP
Shrontz/NNP
added/VBD
,/,
production-rate/JJ
increases/NNS
that/WDT
have/VBP
been/VBN
implemented/VBN
on/IN
the/DT
737/CD
,/,
747/CD
,/,
757/CD
and/CC
767/CD
programs/NNS
have/VBP
resulted/VBN
in/RP
``/``
serious/JJ
work/NN
force/NN
skill-dilution/JJ
problems/NNS
./.
''/''
Suppliers/NNS
and/CC
subcontractors/NNS
are/VBP
experiencing/VBG
heightened/VBN
pressure/NN
to/TO
support/VB
delivery/NN
schedules/NNS
./.
And/CC
,/,
of/IN
course/NN
,/,
there/EX
's/VBZ
the/DT
unsteady/JJ
labor/NN
situation/NN
./.
Besides/IN
the/DT
Machinists/NNS
pact/NN
,/,
accords/NNS
representing/VBG
30,000/CD
of/IN
the/DT
company/NN
's/POS
engineering/NN
and/CC
technical/JJ
employees/NNS
in/IN
the/DT
Puget/NNP
Sound/NNP
and/CC
Wichita/NNP
,/,
Kan./NNP
,/,
areas/NNS
expire/VBP
in/IN
early/JJ
December/NNP
./.
Also/RB
,/,
a/DT
contract/NN
with/IN
the/DT
United/NNP
Auto/NNP
Workers/NNP
at/IN
the/DT
company/NN
's/POS
helicopter/NN
plant/NN
in/IN
Philadelphia/NNP
expired/VBD
Oct./NNP
15/CD
./.
This/DT
contract/NN
,/,
covering/VBG
about/RB
3,000/CD
hourly/JJ
production/NN
and/CC
maintenance/NN
workers/NNS
,/,
is/VBZ
being/VBG
extended/VBN
on/IN
a/DT
day-to-day/JJ
basis/NN
./.
The/DT
Machinists/NNS
rejected/VBD
a/DT
proposal/NN
featuring/VBG
a/DT
10/CD
%/NN
base/NN
wage/NN
increase/NN
over/IN
the/DT
life/NN
of/IN
the/DT
three-year/JJ
contract/NN
,/,
plus/CC
bonuses/NNS
of/IN
8/CD
%/NN
the/DT
first/JJ
year/NN
and/CC
3/CD
%/NN
the/DT
second/JJ
./.
On/IN
top/NN
of/IN
that/DT
,/,
Boeing/NNP
would/MD
make/VB
cost-of-living/JJ
adjustments/NNS
projected/VBN
to/TO
be/VB
5/CD
%/NN
for/IN
each/DT
year/NN
of/IN
the/DT
contract/NN
./.
The/DT
union/NN
,/,
though/RB
,/,
has/VBZ
called/VBN
the/DT
offer/NN
``/``
insulting/JJ
./.
''/''
The/DT
company/NN
reiterated/VBD
yesterday/NN
that/IN
it/PRP
's/VBZ
willing/JJ
to/TO
reconfigure/NN
the/DT
package/NN
,/,
but/CC
not/RB
add/VB
to/TO
the/DT
substance/NN
of/IN
it/PRP
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Boeing/NNP
's/POS
net/NN
increased/VBD
36/CD
%/NN
to/TO
$/$
598/CD
million/CD
,/,
or/CC
$/$
2.60/CD
a/DT
share/NN
,/,
from/IN
$/$
440/CD
million/CD
,/,
or/CC
$/$
1.92/CD
a/DT
share/NN
./.
Sales/NNS
soared/VBD
28/CD
%/NN
to/TO
$/$
15.43/CD
billion/CD
from/IN
$/$
12.09/CD
billion/CD
./.
In/IN
a/DT
separate/JJ
matter/NN
,/,
the/DT
Justice/NNP
Department/NNP
yesterday/NN
said/VBD
Boeing/NNP
agreed/VBD
to/TO
pay/VB
the/DT
government/NN
$/$
11/CD
million/CD
to/TO
settle/VB
claims/NNS
that/IN
the/DT
company/NN
provided/VBD
inaccurate/JJ
cost/NN
information/NN
to/TO
the/DT
Air/NNP
Force/NNP
while/IN
negotiating/VBG
contracts/NNS
to/TO
replace/VB
the/DT
aluminum/NN
skins/NNS
on/IN
the/DT
KC-135/NNP
tanker/NN
aircraft/NN
./.
The/DT
settlement/NN
relates/VBZ
to/TO
four/CD
contracts/NNS
negotiated/VBN
from/IN
1982/CD
to/TO
1985/CD
,/,
prosecutors/NNS
said/VBD
./.
They/PRP
added/VBD
that/IN
the/DT
settlement/NN
is/VBZ
the/DT
culmination/NN
of/IN
a/DT
2/CD
1\/2-year/JJ
investigation/NN
into/IN
the/DT
company/NN
's/POS
aluminum/NN
pricing/NN
practices/NNS
in/IN
connection/NN
with/IN
KC-135s/NNS
./.
A/DT
Boeing/NNP
spokesman/NN
responded/VBD
:/:
``/``
All/DT
along/IN
the/DT
company/NN
has/VBZ
said/VBD
there/EX
was/VBD
no/DT
grounds/NNS
for/IN
criminal/JJ
prosecution/NN
./.
That/DT
was/VBD
borne/VBN
out/RP
by/IN
the/DT
Justice/NNP
Department/NNP
's/POS
decision/NN
''/''
to/TO
settle/VB
the/DT
case/NN
./.
Foothills/NNP
Pipe/NNP
Lines/NNP
Ltd./NNP
filed/VBD
an/DT
application/NN
with/IN
Canadian/JJ
regulators/NNS
to/TO
build/VB
a/DT
4.4/CD
billion/CD
Canadian/JJ
dollar/NN
US$/$
3.74/CD
billion/CD
pipeline/NN
to/TO
transport/VB
natural/JJ
gas/NN
from/IN
Canada/NNP
's/POS
Arctic/NNP
to/TO
U.S./NNP
markets/NNS
beginning/VBG
in/IN
The/DT
application/NN
by/IN
Foothills/NNP
,/,
owned/VBN
by/IN
Calgary-based/JJ
Nova/NNP
Corp./NNP
of/IN
Alberta/NNP
and/CC
Westcoast/NNP
Energy/NNP
Inc./NNP
of/IN
Vancouver/NNP
,/,
Canada/NNP
,/,
is/VBZ
expected/VBN
to/TO
kick/VB
off/RP
what/WP
could/MD
be/VB
a/DT
contentious/JJ
battle/NN
for/IN
the/DT
right/NN
to/TO
transport/VB
vast/JJ
quantities/NNS
of/IN
gas/NN
to/TO
southern/JJ
markets/NNS
from/IN
still-undeveloped/JJ
fields/NNS
in/IN
Canada/NNP
's/POS
Mackenzie/NNP
River/NNP
delta/NN
./.
``/``
This/DT
is/VBZ
a/DT
pre-emptive/JJ
strike/NN
by/IN
Foothills/NNP
,/,
''/''
said/VBD
Rick/NNP
Hillary/NNP
,/,
natural/JJ
gas/NN
manager/NN
of/IN
the/DT
Calgary-based/JJ
Independent/NNP
Petroleum/NNP
Association/NNP
of/IN
Canada/NNP
,/,
an/DT
industry/NN
group/NN
./.
``/``
Foothills/NNS
wants/VBZ
to/TO
make/VB
it/PRP
clear/JJ
to/TO
other/JJ
pipeline/NN
companies/NNS
that/IN
it/PRP
's/VBZ
on/IN
first/NN
insofar/RB
as/IN
transporting/NN
gas/NN
from/IN
the/DT
Arctic/NNP
to/TO
southern/JJ
markets/NNS
,/,
''/''
Mr./NNP
Hillary/NNP
said/VBD
./.
At/IN
least/JJS
two/CD
rival/JJ
applications/NNS
are/VBP
expected/VBN
to/TO
emerge/VB
in/IN
coming/VBG
months/NNS
,/,
including/VBG
one/CD
from/IN
TransCanada/NNP
PipeLines/NNP
Ltd./NNP
,/,
Canada/NNP
's/POS
largest/JJS
natural/JJ
gas/NN
pipeline/NN
operator/NN
./.
Another/DT
is/VBZ
expected/VBN
from/IN
a/DT
consortium/NN
of/IN
oil/NN
and/CC
gas/NN
producers/NNS
who/WP
won/VBD
conditional/JJ
approval/NN
this/DT
month/NN
from/IN
Canada/NNP
's/POS
National/NNP
Energy/NNP
Board/NNP
to/TO
export/VB
about/RB
9.2/CD
trillion/CD
cubic/JJ
feet/NNS
of/IN
Mackenzie/NNP
delta/NN
gas/NN
to/TO
the/DT
U.S./NNP
starting/VBG
in/IN
1996/CD
./.
The/DT
producers/NNS
include/VBP
Shell/NNP
Canada/NNP
Ltd./NNP
,/,
a/DT
unit/NN
of/IN
Royal/NNP
Dutch\/Shell/NNP
Group/NNP
;/:
Esso/NNP
Resources/NNP
Canada/NNP
Ltd./NNP
,/,
a/DT
unit/NN
of/IN
Imperial/NNP
Oil/NNP
Ltd./NNP
,/,
which/WDT
is/VBZ
71%-owned/CD
by/IN
Exxon/NNP
Corp./NNP
;/:
and/CC
Gulf/NNP
Canada/NNP
Resources/NNP
Ltd./NNP
,/,
a/DT
unit/NN
of/IN
Olympia/NNP
&/CC
York/NNP
Developments/NNP
Ltd/NNP
./.
``/``
The/DT
National/NNP
Energy/NNP
Board/NNP
approval/NN
of/IN
the/DT
exports/NNS
just/RB
waved/VBD
the/DT
starting/NN
flag/NN
for/IN
the/DT
next/JJ
stage/NN
,/,
the/DT
rush/NN
to/TO
build/VB
facilities/NNS
to/TO
transport/VB
the/DT
gas/NN
,/,
''/''
said/VBD
Bill/NNP
Koerner/NNP
,/,
an/DT
analyst/NN
with/IN
Brady/NNP
&/CC
Berliner/NNP
,/,
a/DT
Washington/NNP
,/,
D.C./NNP
,/,
law/NN
firm/NN
./.
Foothills/NNP
'/POS
main/JJ
rival/NN
to/TO
build/VB
a/DT
Mackenzie/NNP
Delta/NNP
pipeline/NN
is/VBZ
likely/JJ
to/TO
be/VB
TransCanada/NNP
PipeLines/NNP
./.
The/DT
Toronto-based/NNP
company/NN
,/,
together/RB
with/IN
Tenneco/NNP
Inc./NNP
of/IN
Houston/NNP
,/,
has/VBZ
had/VBD
an/DT
incomplete/JJ
proposal/NN
filed/VBN
with/IN
Canadian/JJ
regulators/NNS
since/IN
1984/CD
that/IN
it/PRP
is/VBZ
now/RB
updating/VBG
./.
Like/IN
Foothills/NNP
,/,
TransCanada/NNP
's/POS
Polar/NNP
Gas/NNP
consortium/NN
plans/NNS
to/TO
build/VB
a/DT
pipeline/NN
directly/RB
south/RB
from/IN
the/DT
Mackenzie/NNP
River/NNP
delta/NN
in/IN
Canada/NNP
's/POS
western/JJ
Arctic/NNP
with/IN
an/DT
initial/JJ
capacity/NN
to/TO
transport/VB
1.2/CD
billion/CD
cubic/JJ
feet/NNS
of/IN
gas/NN
daily/RB
./.
Industry/NN
sources/NNS
said/VBD
they/PRP
expect/VBP
a/DT
fierce/JJ
battle/NN
to/TO
emerge/VB
between/IN
TransCanada/NNP
,/,
which/WDT
has/VBZ
a/DT
monopoly/NN
on/IN
Canadian/JJ
gas/NN
transportation/NN
east/JJ
of/IN
Alberta/NNP
,/,
and/CC
Nova/NNP
and/CC
Westcoast/NNP
,/,
which/WDT
control/VBP
the/DT
pipelines/NNS
within/IN
and/CC
running/VBG
west/NN
of/IN
Alberta/NNP
,/,
respectively/RB
./.
``/``
This/DT
is/VBZ
virgin/JJ
territory/NN
,/,
unclaimed/JJ
,/,
and/CC
it/PRP
's/VBZ
going/VBG
to/TO
be/VB
nasty/JJ
,/,
''/''
said/VBD
one/CD
observer/NN
,/,
who/WP
asked/VBD
not/RB
to/TO
be/VB
named/VBN
./.
``/``
Neither/CC
is/VBZ
going/VBG
to/TO
back/VB
down/RP
easily/RB
./.
''/''
TransCanada/NNP
declined/VBD
to/TO
comment/VB
on/RP
the/DT
Foothills/NNP
application/NN
./.
But/CC
last/JJ
week/NN
Gerald/NNP
Maier/NNP
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
TransCanada/NNP
,/,
said/VBD
the/DT
company/NN
``/``
intends/VBZ
to/TO
be/VB
a/DT
party/NN
to/TO
any/DT
transportation/NN
system/NN
that/WDT
goes/VBZ
up/RP
there/RB
''/''
and/CC
that/IN
it/PRP
would/MD
consider/VB
joint/JJ
ventures/NNS
with/IN
other/JJ
players/NNS
to/TO
ensure/VB
it/PRP
has/VBZ
a/DT
role/NN
./.
A/DT
number/NN
of/IN
issues/NNS
still/RB
need/VB
to/TO
be/VB
resolved/VBN
before/RB
Canadian/JJ
regulators/NNS
give/VBP
any/DT
project/NN
the/DT
final/JJ
go-ahead/NN
./.
First/RB
,/,
the/DT
price/NN
of/IN
natural/JJ
gas/NN
will/MD
have/VB
to/TO
almost/RB
double/VB
./.
Kent/NNP
Jesperson/NNP
,/,
president/NN
of/IN
Foothills/NNP
,/,
said/VBD
the/DT
company/NN
believes/VBZ
the/DT
project/NN
would/MD
be/VB
viable/JJ
if/IN
gas/NN
prices/NNS
reach/VBP
US$/$
3.25/CD
a/DT
thousand/CD
cubic/JJ
feet/NNS
by/IN
1995/CD
,/,
in/IN
current/JJ
dollars/NNS
,/,
up/RB
from/IN
a/DT
current/JJ
spot/NN
price/NN
of/IN
about/RB
US$/$
1.50/CD
./.
Mr./NNP
Jesperson/NNP
's/POS
US$/$
3.25/CD
estimate/NN
is/VBZ
somewhat/RB
below/IN
the/DT
$/$
3.39/CD
floor/NN
price/NN
that/IN
Calgary-based/JJ
consulting/JJ
firm/NN
Paul/NNP
Ziff/NNP
&/CC
Co./NNP
recently/RB
said/VBD
would/MD
be/VB
needed/VBN
for/IN
Mackenzie/NNP
delta/NN
gas/NN
producers/NNS
to/TO
see/VB
a/DT
return/NN
on/IN
their/PRP$
investment/NN
./.
U.S./NNP
gas/NN
buyers/NNS
must/MD
also/RB
decide/VB
whether/IN
they/PRP
want/VBP
to/TO
enter/VB
firm/JJ
contracts/NNS
for/IN
Mackenzie/NNP
delta/NN
gas/NN
or/CC
develop/VB
Alaskan/JJ
reserves/NNS
in/IN
the/DT
Prudhoe/NNP
Bay/NNP
area/NN
first/RB
,/,
a/DT
project/NN
that/WDT
has/VBZ
been/VBN
on/IN
hold/NN
for/IN
more/JJR
than/IN
a/DT
decade/NN
./.
Robert/NNP
Pierce/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/NN
of/IN
Foothills/NNP
,/,
said/VBD
it/PRP
's/VBZ
too/RB
early/JJ
to/TO
say/VB
whether/CC
Alaskan/JJ
or/CC
Mackenzie/NNP
delta/JJ
gas/NN
would/MD
flow/VB
to/TO
market/NN
first/RB
./.
But/CC
Foothills/NNP
said/VBD
it/PRP
plans/VBZ
to/TO
seek/VB
regulatory/JJ
approval/NN
to/TO
build/VB
an/DT
alternative/JJ
line/NN
,/,
the/DT
Alaska/NNP
Natural/NNP
Gas/NNP
Transportation/NNP
System/NNP
further/RBR
north/RB
toward/IN
Alaska/NNP
./.
If/IN
that/DT
option/NN
is/VBZ
favored/VBN
by/IN
gas/NN
buyers/NNS
and/CC
regulators/NNS
,/,
Foothills/NNP
said/VBD
it/PRP
would/MD
build/VB
another/DT
smaller/JJR
pipeline/NN
connecting/VBG
Mackenzie/NNP
Delta/NNP
reserves/NNS
to/TO
the/DT
Alaska/NNP
mainline/NN
./.
It/PRP
's/VBZ
also/RB
likely/JJ
that/IN
regulators/NNS
will/MD
try/VB
to/TO
forge/VB
some/DT
kind/NN
of/IN
consensus/NN
between/IN
the/DT
would-be/JJ
pipeline/NN
builders/NNS
before/IN
undertaking/VBG
any/DT
hearings/NNS
into/IN
rival/JJ
projects/NNS
./.
Douglas/NNP
Stoneman/NNP
,/,
vice/NN
president/NN
of/IN
Shell/NNP
Canada/NNP
,/,
noted/VBD
that/IN
producers/NNS
would/MD
prefer/VB
to/TO
avoid/VB
hearings/NNS
into/IN
competing/VBG
proposals/NNS
that/WDT
would/MD
lengthen/VB
the/DT
regulatory/JJ
review/NN
process/NN
and/CC
bog/VB
down/RP
development/NN
./.
Interprovincial/NNP
Pipe/NNP
Line/NNP
Co./NNP
,/,
an/DT
oil/NN
pipeline/NN
operator/NN
rumored/VBN
to/TO
be/VB
mulling/VBG
a/DT
gas/NN
pipeline/NN
proposal/NN
of/IN
its/PRP$
own/JJ
,/,
said/VBD
that/IN
is/VBZ
n't/RB
in/IN
the/DT
cards/NNS
./.
Instead/RB
,/,
Richard/NNP
Haskayne/NNP
,/,
president/NN
and/CC
chief/JJ
executive/NN
of/IN
Interprovincial/NNP
's/POS
Calgary-based/JJ
parent/NN
,/,
Interhome/NNP
Energy/NNP
Inc./NNP
,/,
said/VBD
the/DT
company/NN
would/MD
prefer/VB
to/TO
work/VB
with/IN
other/JJ
``/``
interested/JJ
parties/NNS
''/''
on/IN
a/DT
joint/JJ
proposal/NN
./.
As/IN
for/IN
Foothills/NNP
'/POS
pre-emptive/JJ
bid/NN
,/,
Mr./NNP
Haskayne/NNP
said/VBD
,/,
``/``
If/IN
they/PRP
think/VBP
it/PRP
gives/VBZ
them/PRP
some/DT
kind/NN
of/IN
priority/NN
position/NN
,/,
well/UH
,/,
that/DT
's/POS
their/PRP$
strategy/NN
./.
''/''
The/DT
Federal/NNP
Reserve/NNP
Board/NNP
said/VBD
it/PRP
is/VBZ
delaying/VBG
approval/NN
of/IN
First/JJ
Union/NNP
Corp./NNP
's/POS
proposed/VBN
$/$
849/CD
million/CD
acquisition/NN
of/IN
Florida/NNP
National/NNP
Banks/NNP
of/IN
Florida/NNP
Inc./NNP
,/,
pending/VBG
the/DT
outcome/NN
of/IN
an/DT
examination/NN
into/IN
First/JJ
Union/NNP
's/POS
lending/VBG
practices/NNS
in/IN
low-income/JJ
neighborhoods/NNS
./.
The/DT
decision/NN
reflects/VBZ
the/DT
Fed/NNP
's/POS
tougher/JJR
stance/NN
on/IN
enforcing/VBG
the/DT
Community/NNP
Reinvestment/NNP
Act/NNP
,/,
a/DT
federal/JJ
law/NN
passed/VBN
in/IN
1977/CD
to/TO
help/VB
low-income/JJ
residents/NNS
obtain/VB
loans/NNS
./.
In/IN
recent/JJ
years/NNS
,/,
unions/NNS
and/CC
community/NN
groups/NNS
have/VBP
won/VBN
big/JJ
commitments/NNS
from/IN
banks/NNS
to/TO
make/VB
low-interest/JJ
loans/NNS
in/IN
certain/JJ
neighborhoods/NNS
by/IN
threatening/VBG
to/TO
hold/VB
up/RP
proposed/VBN
acquisitions/NNS
with/IN
protests/NNS
to/TO
the/DT
Fed/NNP
about/IN
reinvestment/NN
act/NN
compliance/NN
./.
Few/JJ
petitions/NNS
,/,
however/RB
,/,
have/VBP
actually/RB
delayed/VBN
or/CC
scuttled/VBN
mergers/NNS
./.
The/DT
current/JJ
dispute/NN
involves/VBZ
allegations/NNS
that/IN
Charlotte/NNP
,/,
N.C.-based/JJ
First/NNP
Union/NNP
has/VBZ
n't/RB
lived/VBD
up/RP
to/TO
its/PRP$
responsibilities/NNS
under/IN
the/DT
reinvestment/NN
act/NN
./.
During/IN
the/DT
summer/NN
,/,
Legal/NNP
Services/NNP
Corp./NNP
,/,
a/DT
Florida/NNP
legal/JJ
aid/NN
group/NN
,/,
filed/VBD
a/DT
petition/NN
with/IN
the/DT
Fed/NNP
on/IN
behalf/NN
of/IN
residents/NNS
in/IN
four/CD
Florida/NNP
counties/NNS
./.
The/DT
petition/NN
challenged/VBD
First/NNP
Union/NNP
's/POS
lending/NN
record/NN
in/IN
the/DT
state/NN
,/,
saying/VBG
that/IN
the/DT
bank-holding/JJ
company/NN
had/VBD
``/``
shut/VBN
itself/PRP
off/RP
from/IN
contact/NN
with/IN
the/DT
low-income/JJ
community/NN
and/CC
is/VBZ
redlining/VBG
almost/RB
every/DT
black/JJ
neighborhood/NN
that/IN
it/PRP
serves/VBZ
in/IN
the/DT
state/NN
./.
''/''
In/IN
deferring/VBG
action/NN
on/IN
the/DT
merger/NN
,/,
the/DT
Fed/NNP
said/VBD
,/,
``/``
The/DT
Board/NNP
does/VBZ
not/RB
believe/VB
that/IN
there/EX
is/VBZ
sufficient/JJ
information/NN
in/IN
the/DT
record/NN
at/IN
this/DT
time/NN
to/TO
allow/VB
{/(
it/PRP
a/DT
final/JJ
conclusion/NN
on/IN
First/JJ
Union/NNP
's/POS
record/NN
of/IN
helping/VBG
to/TO
meet/VB
the/DT
credit/NN
needs/NNS
of/IN
the/DT
communities/NNS
it/PRP
serves/VBZ
in/IN
Florida/NNP
and/CC
North/NNP
Carolina/NNP
,/,
including/VBG
low/JJ
to/TO
moderate-income/JJ
neighborhoods/NNS
in/IN
those/DT
communities/NNS
./.
''/''
The/DT
Fed/NNP
said/VBD
the/DT
Comptroller/NNP
of/IN
the/DT
Currency/NNP
is/VBZ
expected/VBN
to/TO
begin/VB
a/DT
Community/NNP
Reinvestment/NNP
Act/NNP
examination/NN
of/IN
First/NNP
Union/NNP
's/POS
Florida/NNP
and/CC
North/NNP
Carolina/NNP
banking/NN
units/NNS
in/IN
the/DT
next/JJ
two/CD
weeks/NNS
./.
First/NNP
Union/NNP
,/,
with/IN
assets/NNS
of/IN
about/RB
$/$
32/CD
billion/CD
,/,
said/VBD
it/PRP
was/VBD
disappointed/VBN
by/IN
the/DT
delay/NN
but/CC
said/VBD
it/PRP
would/MD
cooperate/VB
with/IN
regulatory/JJ
authorities/NNS
./.
The/DT
bank/NN
added/VBD
that/IN
it/PRP
believes/VBZ
the/DT
review/NN
will/MD
``/``
demonstrate/VB
that/IN
First/NNP
Union/NNP
is/VBZ
in/IN
compliance/NN
with/IN
the/DT
requirements/NNS
of/IN
the/DT
Community/NNP
Reinvestment/NNP
Act/NNP
./.
''/''
The/DT
company/NN
has/VBZ
already/RB
missed/VBN
its/PRP$
initial/JJ
Oct./NNP
1/CD
target/NN
date/NN
for/IN
completing/VBG
the/DT
merger/NN
./.
It/PRP
said/VBD
yesterday/NN
it/PRP
still/RB
expects/VBZ
to/TO
close/VB
the/DT
acquisition/NN
later/RBR
this/DT
year/NN
or/CC
early/RB
in/IN
1990/CD
./.
Florida/NNP
National/NNP
,/,
if/IN
acquired/VBN
,/,
would/MD
almost/RB
double/VB
First/NNP
Union/NNP
's/POS
banking/VBG
franchise/NN
in/IN
Florida/NNP
to/TO
$/$
17/CD
billion/CD
in/IN
assets/NNS
./.
That/DT
would/MD
make/VB
it/PRP
the/DT
second-largest/JJ
bank/NN
,/,
after/IN
Barnett/NNP
Banks/NNP
Inc./NNP
,/,
in/IN
a/DT
state/NN
widely/RB
considered/VBN
to/TO
be/VB
the/DT
most/RBS
lucrative/JJ
banking/NN
market/NN
in/IN
the/DT
country/NN
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
First/NNP
Union/NNP
shares/NNS
rose/VBD
25/CD
cents/NNS
to/TO
$/$
23/CD
./.
Florida/NNP
National/NNP
stock/NN
closed/VBD
unchanged/JJ
at/IN
$/$
25.875/CD
in/IN
national/JJ
over-the-counter/JJ
trading/NN
./.
Earlier/RBR
this/DT
year/NN
,/,
the/DT
Fed/NNP
denied/VBD
an/DT
application/NN
by/IN
Continental/NNP
Bank/NNP
Corp./NNP
to/TO
purchase/VB
Grand/NNP
Canyon/NNP
State/NNP
Bank/NNP
in/IN
Scottsdale/NNP
,/,
Ariz./NNP
,/,
on/IN
grounds/NNS
that/IN
Continental/NNP
had/VBD
n't/RB
fully/RB
complied/VBN
with/IN
the/DT
Community/NNP
Reinvestment/NNP
Act/NNP
./.
At/IN
the/DT
time/NN
,/,
the/DT
Fed/NNP
said/VBD
the/DT
denial/NN
,/,
the/DT
first/JJ
ever/RB
on/IN
such/JJ
grounds/NNS
,/,
signaled/VBD
the/DT
agency/NN
's/POS
new/JJ
emphasis/NN
on/IN
the/DT
Community/NNP
Reinvestment/NNP
Act/NNP
./.
Eastern/NNP
Airlines/NNP
'/POS
creditors/NNS
committee/NN
backed/VBD
off/RP
a/DT
move/NN
to/TO
come/VB
up/RP
with/IN
its/PRP$
own/JJ
alternative/JJ
proposals/NNS
to/TO
the/DT
carrier/NN
's/POS
bankruptcy/NN
reorganization/NN
plans/NNS
,/,
according/VBG
to/TO
sources/NNS
familiar/JJ
with/IN
the/DT
committee/NN
./.
In/IN
a/DT
meeting/NN
in/IN
New/NNP
York/NNP
yesterday/NN
,/,
the/DT
committee/NN
put/VBD
on/IN
hold/NN
instructions/NNS
it/PRP
gave/VBD
two/CD
weeks/NNS
ago/RB
to/TO
its/PRP$
experts/NNS
to/TO
explore/VB
other/JJ
options/NNS
for/IN
Eastern/NNP
's/POS
future/NN
,/,
the/DT
sources/NNS
said/VBD
./.
The/DT
consultants/NNS
had/VBD
been/VBN
working/VBG
to/TO
finish/VB
a/DT
report/NN
this/DT
week/NN
./.
That/DT
means/VBZ
Eastern/NNP
,/,
a/DT
unit/NN
of/IN
Texas/NNP
Air/NNP
Corp./NNP
of/IN
Houston/NNP
,/,
can/MD
go/VB
forward/RB
with/IN
its/PRP$
pitch/NN
for/IN
creditor/NN
approval/NN
as/RB
early/RB
as/IN
today/NN
,/,
when/WRB
it/PRP
is/VBZ
expected/VBN
to/TO
deliver/VB
a/DT
revised/VBN
reorganization/NN
plan/NN
to/TO
the/DT
committee/NN
./.
The/DT
committee/NN
intends/VBZ
to/TO
meet/VB
next/JJ
week/NN
to/TO
make/VB
a/DT
recommendation/NN
on/IN
the/DT
new/JJ
plan/NN
./.
In/IN
another/DT
development/NN
yesterday/NN
,/,
creditors/NNS
were/VBD
told/VBN
that/IN
$/$
40/CD
million/CD
they/PRP
had/VBD
expected/VBN
to/TO
become/VB
available/JJ
for/IN
implementing/VBG
a/DT
reorganization/NN
may/MD
not/RB
materialize/VB
,/,
according/VBG
to/TO
one/CD
source/NN
./.
Texas/NNP
Air/NNP
has/VBZ
run/VBN
into/IN
difficulty/NN
reselling/VBG
about/RB
$/$
20/CD
million/CD
of/IN
debt/NN
securities/NNS
because/IN
of/IN
problems/NNS
in/IN
the/DT
junk/NN
bond/NN
market/NN
,/,
the/DT
person/NN
said/VBD
./.
And/CC
plans/NNS
to/TO
raise/VB
another/DT
$/$
20/CD
million/CD
through/IN
changes/NNS
to/TO
an/DT
insurance/NN
policy/NN
have/VBP
hit/VBN
a/DT
snag/NN
,/,
the/DT
source/NN
said/VBD
./.
An/DT
Eastern/NNP
spokesman/NN
said/VBD
``/``
the/DT
$/$
40/CD
million/CD
will/MD
have/VB
no/DT
effect/NN
whatsoever/RB
on/IN
the/DT
asset/NN
structure/NN
of/IN
Eastern/NNP
's/POS
plan/NN
./.
Forty/CD
million/CD
in/IN
the/DT
total/JJ
scheme/NN
of/IN
things/NNS
is/VBZ
not/RB
that/RB
significant/JJ
./.
''/''
It/PRP
is/VBZ
unclear/JJ
what/WP
caused/VBD
the/DT
creditors/NNS
to/TO
do/VB
an/DT
about-face/NN
on/IN
exploring/VBG
alternatives/NNS
to/TO
Eastern/NNP
's/POS
new/JJ
reorganization/NN
plan/NN
./.
However/RB
,/,
since/IN
Eastern/NNP
first/RB
filed/VBD
for/IN
Chapter/NNP
11/CD
protection/NN
March/NNP
9/CD
,/,
it/PRP
has/VBZ
consistently/RB
promised/VBN
to/TO
pay/VB
creditors/NNS
100/CD
cents/NNS
on/IN
the/DT
dollar/NN
./.
Because/IN
the/DT
carrier/NN
is/VBZ
still/RB
pledging/VBG
to/TO
do/VB
that/DT
,/,
some/DT
committee/NN
members/NNS
successfully/RB
argued/VBD
that/IN
there/EX
's/POS
little/JJ
reason/NN
yet/RB
to/TO
explore/VB
a/DT
different/JJ
plan/NN
,/,
according/VBG
to/TO
one/CD
person/NN
familiar/JJ
with/IN
the/DT
creditors/NNS
'/POS
position/NN
./.
Earlier/RBR
this/DT
month/NN
the/DT
accounting/NN
firm/NN
of/IN
Ernst/NNP
&/CC
Young/NNP
and/CC
the/DT
securities/NNS
firm/NN
of/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
,/,
the/DT
experts/NNS
hired/VBN
by/IN
the/DT
creditors/NNS
,/,
contended/VBD
that/IN
Eastern/NNP
would/MD
have/VB
difficulty/NN
meeting/VBG
earnings/NNS
targets/NNS
the/DT
airline/NN
was/VBD
projecting/VBG
./.
Ernst/NNP
&/CC
Young/NNP
said/VBD
Eastern/NNP
's/POS
plan/NN
would/MD
miss/VB
projections/NNS
by/IN
$/$
100/CD
million/CD
./.
Goldman/NNP
said/VBD
Eastern/NNP
would/MD
miss/VB
the/DT
same/JJ
mark/NN
by/IN
at/IN
least/JJS
$/$
120/CD
million/CD
./.
The/DT
consultants/NNS
maintained/VBD
Eastern/NNP
would/MD
n't/RB
generate/VB
the/DT
cash/NN
it/PRP
needs/VBZ
and/CC
would/MD
have/VB
to/TO
issue/VB
new/JJ
debt/NN
to/TO
meet/VB
its/PRP$
targets/NNS
under/IN
the/DT
plan/NN
./.
Eastern/NNP
at/IN
the/DT
time/NN
disputed/VBD
those/DT
assessments/NNS
and/CC
called/VBD
the/DT
experts/NNS
'/POS
report/NN
``/``
completely/RB
off/IN
base/NN
./.
''/''
Yesterday/NN
,/,
Joel/NNP
Zweibel/NNP
,/,
an/DT
attorney/NN
for/IN
Eastern/NNP
's/POS
creditors/NNS
committee/NN
,/,
declined/VBD
to/TO
comment/VB
on/IN
whether/IN
the/DT
experts/NNS
had/VBD
ever/RB
been/VBN
instructed/VBN
to/TO
look/VB
at/IN
other/JJ
choices/NNS
and/CC
whether/IN
they/PRP
now/RB
were/VBD
asked/VBN
not/RB
to/TO
./.
He/PRP
said/VBD
only/RB
that/IN
the/DT
committee/NN
has/VBZ
not/RB
yet/RB
taken/VBN
any/DT
position/NN
on/IN
Eastern/NNP
's/POS
reorganization/NN
plan/NN
and/CC
that/IN
the/DT
two/CD
sides/NNS
were/VBD
still/RB
negotiating/VBG
./.
``/``
In/IN
every/DT
case/NN
,/,
people/NNS
would/MD
like/VB
to/TO
see/VB
a/DT
consentual/JJ
plan/NN
,/,
''/''
he/PRP
said/VBD
./.
Eastern/NNP
and/CC
its/PRP$
creditors/NNS
agreed/VBD
in/IN
July/NNP
on/IN
a/DT
reorganization/NN
plan/NN
that/WDT
called/VBD
for/IN
the/DT
carrier/NN
to/TO
sell/VB
off/RP
$/$
1.8/CD
billion/CD
in/IN
assets/NNS
and/CC
to/TO
emerge/VB
from/IN
Chapter/NNP
11/CD
status/NN
in/IN
late/RB
1989/CD
at/IN
two-thirds/JJ
its/PRP$
former/JJ
size/NN
./.
Eastern/NNP
eventually/RB
decided/VBD
not/RB
to/TO
sell/VB
off/RP
a/DT
major/JJ
chunk/NN
,/,
its/PRP$
South/JJ
American/JJ
routes/NNS
,/,
which/WDT
were/VBD
valued/VBN
at/IN
$/$
400/CD
million/CD
./.
Such/JJ
a/DT
change/NN
meant/VBD
the/DT
reorganization/NN
plan/NN
the/DT
creditors/NNS
had/VBD
agreed/VBN
on/RP
was/VBD
no/DT
longer/RBR
valid/JJ
,/,
and/CC
the/DT
two/CD
sides/NNS
had/VBD
to/TO
begin/VB
negotiating/VBG
again/RB
./.
Eastern/NNP
has/VBZ
publicly/RB
stated/VBN
it/PRP
is/VBZ
exceeding/VBG
its/PRP$
goals/NNS
for/IN
getting/VBG
back/RB
into/IN
operation/NN
and/CC
has/VBZ
predicted/VBN
it/PRP
would/MD
emerge/VB
from/IN
Chapter/NNP
11/CD
proceedings/NNS
early/RB
next/IN
year/NN
,/,
operating/VBG
more/JJR
flights/NNS
than/IN
it/PRP
originally/RB
had/VBD
scheduled/VBN
./.
The/DT
following/VBG
were/VBD
among/IN
yesterday/NN
's/POS
offerings/NNS
and/CC
pricings/NNS
in/IN
the/DT
U.S./NNP
and/CC
non-U.S./JJ
capital/NN
markets/NNS
,/,
with/IN
terms/NNS
and/CC
syndicate/NN
manager/NN
,/,
as/IN
compiled/VBN
by/IN
Dow/NNP
Jones/NNP
Capital/NNP
Markets/NNP
Report/NNP
:/:
New/NNP
York/NNP
City/NNP
--/:
$/$
813.4/CD
million/CD
of/IN
general/JJ
obligation/NN
bonds/NNS
,/,
Fiscal/NNP
1990/CD
Series/NNP
C/NNP
and/CC
D/NNP
,/,
including/VBG
$/$
757.4/CD
million/CD
of/IN
tax-exempt/JJ
bonds/NNS
and/CC
$/$
56/CD
million/CD
of/IN
taxable/JJ
bonds/NNS
,/,
tentatively/RB
priced/VBN
by/IN
a/DT
Goldman/NNP
Sachs/NNP
&/CC
Co./NNP
group/NN
./.
Yields/NNS
for/IN
tax-exempt/JJ
bonds/NNS
range/VBP
from/IN
6/CD
1\/2/CD
%/NN
in/IN
1990/CD
to/TO
7.88/CD
%/NN
in/IN
2003-2005/CD
./.
Yields/NNS
for/IN
taxable/JJ
bonds/NNS
range/VBP
from/IN
9/CD
1\/8/CD
%/NN
in/IN
1994/CD
to/TO
9.90/CD
%/NN
in/IN
2009/CD
and/CC
2010/CD
./.
The/DT
bonds/NNS
are/VBP
all/RB
rated/VBN
single-A/NNP
by/IN
Moody/NNP
's/POS
Investors/NNP
Service/NNP
Inc/NNP
./.
The/DT
underwriters/NNS
expect/VBP
a/DT
single-A-minus/JJ
rating/NN
from/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NNP
,/,
which/WDT
has/VBZ
the/DT
issue/NN
under/IN
review/NN
./.
Collateralized/NNP
Mortgage/NNP
Securities/NNP
Corp./NNP
--/:
$/$
150/CD
million/CD
of/IN
Remic/JJ
mortgage/NN
securities/NNS
offered/VBD
in/IN
12/CD
classes/NNS
by/IN
First/NNP
Boston/NNP
Corp/NNP
./.
The/DT
offering/NN
,/,
Series/NNP
1989-3/CD
,/,
is/VBZ
by/IN
a/DT
company/NN
established/VBN
by/IN
First/NNP
Boston/NNP
for/IN
issuing/VBG
Remics/NNS
and/CC
other/JJ
derivative/JJ
mortgage/NN
securities/NNS
./.
It/PRP
is/VBZ
backed/VBN
by/IN
Government/NNP
National/NNP
Mortgage/NNP
Association/NNP
9/CD
1\/2/CD
%/NN
securities/NNS
with/IN
a/DT
weighted/JJ
average/JJ
remaining/JJ
term/NN
to/TO
maturity/NN
of/IN
29/CD
years/NNS
and/CC
being/VBG
offered/VBN
at/IN
market/NN
prices/NNS
./.
Beneficial/NNP
Corp./NNP
--/:
$/$
248.3/CD
million/CD
of/IN
securities/NNS
backed/VBN
by/IN
home-equity/JJ
loans/NNS
through/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
./.
The/DT
offering/NN
,/,
with/IN
an/DT
expected/VBN
average/JJ
life/NN
of/IN
3.2/CD
years/NNS
,/,
will/MD
float/VB
monthly/RB
at/IN
20/CD
basis/NN
points/NNS
above/IN
the/DT
rate/NN
on/IN
an/DT
index/NN
of/IN
30-day/JJ
double-A-rated/JJ
commercial/JJ
paper/NN
,/,
which/WDT
now/RB
yields/VBZ
about/RB
8.50/CD
%/NN
./.
The/DT
issue/NN
has/VBZ
an/DT
expected/VBN
final/JJ
maturity/NN
date/NN
of/IN
1998/CD
./.
The/DT
offering/NN
is/VBZ
rated/VBN
triple-A/JJ
by/IN
Moody/NNP
's/POS
and/CC
S&P/NNP
,/,
based/VBN
on/IN
the/DT
quality/NN
of/IN
the/DT
underlying/JJ
home/NN
equity/NN
loans/NNS
and/CC
a/DT
letter/NN
of/IN
credit/NN
covering/VBG
10/CD
%/NN
of/IN
the/DT
deal/NN
from/IN
Union/NNP
Bank/NNP
of/IN
Switzerland/NNP
./.
The/DT
offering/NN
is/VBZ
being/VBG
made/VBN
through/IN
BCI/NNP
Home/NNP
Equity/NNP
Loan/NNP
Asset-Backed/NNP
Certificates/NNP
,/,
Series/NNP
1989-1/NNP
./.
Rochester/NNP
Community/NNP
Savings/NNP
Bank/NNP
--/:
$/$
200/CD
million/CD
of/IN
8.85/CD
%/NN
certificates/NNS
backed/VBD
by/IN
automobile/NN
loans/NNS
priced/VBN
to/TO
yield/VB
8.99/CD
%/NN
via/IN
First/NNP
Boston/NNP
Corp/NNP
./.
The/DT
issue/NN
,/,
through/IN
RCSB/NNP
1989-A/NNP
Grantor/NNP
Trust/NNP
,/,
was/VBD
priced/VBN
at/IN
a/DT
yield/NN
spread/NN
of/IN
100/CD
basis/NN
points/NNS
above/RB
the/DT
Treasury/NNP
7/CD
3\/4/CD
%/NN
note/NN
due/JJ
July/NNP
1991/CD
./.
The/DT
offering/NN
has/VBZ
an/DT
expected/VBN
average/JJ
life/NN
of/IN
1.7/CD
years/NNS
and/CC
a/DT
final/JJ
maturity/NN
date/NN
of/IN
May/NNP
15/CD
,/,
1995/CD
./.
The/DT
issue/NN
is/VBZ
rated/VBN
triple-A/JJ
by/IN
Moody/NNP
's/POS
,/,
based/VBN
on/IN
the/DT
quality/NN
of/IN
the/DT
underlying/JJ
auto/NN
loans/NNS
and/CC
a/DT
letter/NN
of/IN
credit/NN
covering/VBG
13/CD
%/NN
of/IN
the/DT
deal/NN
from/IN
Credit/NNP
Suisse/NNP
./.
South/NNP
Australian/NNP
Government/NNP
Finance/NNP
Authority/NNP
agency/NN
125/CD
million/CD
Australian/NNP
dollars/NNS
of/IN
zero-coupon/JJ
Eurobonds/NNS
due/JJ
Dec./NNP
12/CD
,/,
1994/CD
,/,
priced/VBN
at/IN
50.9375/CD
to/TO
yield/VB
15.06/CD
%/JJ
less/CC
fees/NNS
via/IN
Hambros/NNP
Bank/NNP
Ltd/NNP
./.
Guaranteed/VBN
by/IN
the/DT
South/NNP
Australian/NNP
Treasury/NNP
./.
Fees/NNS
1/CD
3\/8/CD
./.
Government/NNP
Insurance/NNP
Office/NNP
of/IN
New/NNP
South/NNP
Wales/NNP
agency/NN
A$/$
50/CD
million/CD
of/IN
17/CD
1\/2/CD
%/NN
Eurobonds/NNS
due/JJ
Dec./NNP
4/CD
,/,
1991/CD
,/,
priced/VBN
at/IN
101.95/CD
to/TO
yield/VB
17.06/CD
less/CC
fees/NNS
via/IN
Westpac/NNP
Banking/NNP
Corp/NNP
./.
Fees/NNS
1/CD
1\/4/CD
./.
Swedish/NNP
Export/NNP
Credit/NNP
Corp/NNP
./.
Sweden/NNP
100/CD
million/CD
Swiss/JJ
francs/NNS
of/IN
6/CD
1\/8/CD
%/NN
privately/RB
placed/VBN
notes/NNS
due/JJ
Sept./NNP
30/CD
,/,
1996/CD
,/,
priced/VBN
at/IN
100/CD
3\/4/CD
to/TO
yield/VB
5.99/CD
%/NN
via/IN
Citicorp/NNP
Investment/NNP
Bank/NNP
Switzerland/NNP
./.
Call/NN
from/IN
Sept./NNP
30/CD
,/,
1993/CD
,/,
at/IN
100/CD
3\/16/CD
,/,
declining/VBG
by/IN
1\/16/CD
point/NN
a/DT
year/NN
to/TO
to/TO
par/NN
./.
Fees/NNS
1/CD
3\/4/CD
./.
West/JJ
German/JJ
insurance/NN
giant/NN
Allianz/NNP
AG/NNP
entered/VBD
the/DT
takeover/NN
battle/NN
between/IN
France/NNP
's/POS
Cie/NNP
./.
Financiere/NNP
de/IN
Paribas/NNP
and/CC
Cie./NNP
de/IN
Navigation/NNP
Mixte/NNP
./.
Allianz/NNP
said/VBD
it/PRP
won/VBD
French/JJ
government/NN
approval/NN
to/TO
buy/VB
as/RB
much/JJ
as/IN
one-third/JJ
of/IN
Navigation/NNP
Mixte/NNP
,/,
a/DT
diversified/JJ
financial/JJ
,/,
transport/NN
and/CC
food/NN
holding/VBG
company/NN
./.
The/DT
move/NN
comes/VBZ
a/DT
week/NN
after/IN
Paribas/NNP
announced/VBD
that/IN
it/PRP
was/VBD
preparing/VBG
to/TO
bid/VB
for/IN
66.7/CD
%/NN
control/NN
of/IN
Navigation/NNP
Mixte/NNP
./.
Munich-based/JJ
Allianz/NNP
's/POS
brief/JJ
explanatory/JJ
statement/NN
said/VBD
it/PRP
is/VBZ
acting/VBG
to/TO
protect/VB
its/PRP$
own/JJ
interests/NNS
as/IN
a/DT
shareholder/NN
of/IN
Navigation/NNP
Mixte/NNP
./.
That/DT
would/MD
be/VB
a/DT
blow/NN
to/TO
both/DT
Paribas/NNP
and/CC
Navigation/NNP
Mixte/NNP
./.
Each/DT
had/VBD
claimed/VBN
Allianz/NNP
,/,
Europe/NNP
's/POS
largest/JJS
insurance/NN
company/NN
,/,
as/IN
a/DT
tacit/JJ
ally/NN
./.
The/DT
Allianz/NNP
statement/NN
also/RB
reinforced/VBD
the/DT
belief/NN
that/IN
the/DT
takeover/NN
battle/NN
could/MD
be/VB
a/DT
long/JJ
one/CD
./.
It/PRP
led/VBD
to/TO
broad/JJ
market/NN
speculation/NN
that/IN
Paribas/NNP
now/RB
will/MD
sweeten/VB
its/PRP$
bid/NN
,/,
which/WDT
is/VBZ
expected/VBN
to/TO
be/VB
formally/RB
launched/VBN
later/RB
this/DT
week/NN
,/,
after/IN
approval/NN
from/IN
French/JJ
government/NN
regulators/NNS
./.
Allianz/NNP
's/POS
entry/NN
reflects/VBZ
the/DT
increasing/VBG
eagerness/NN
of/IN
West/NNP
German/NNP
companies/NNS
,/,
looking/VBG
ahead/RB
to/TO
the/DT
reduction/NN
in/IN
European/NNP
Community/NNP
internal/JJ
barriers/NNS
in/IN
1992/CD
,/,
to/TO
get/VB
involved/VBN
in/IN
what/WP
until/IN
now/RB
were/VBD
considered/VBN
internal/JJ
French/JJ
affairs/NNS
./.
Deutsche/NNP
Bank/NNP
,/,
Dresdner/NNP
Bank/NNP
and/CC
Commerzbank/NNP
all/RB
also/RB
have/VBP
expressed/VBN
eagerness/NN
to/TO
expand/VB
in/IN
France/NNP
before/IN
1992/CD
./.
Dresdner/NNP
Bank/NNP
this/DT
month/NN
moved/VBD
to/TO
acquire/VB
Banque/NNP
Internationale/NNP
des/NNP
Placements/NNP
,/,
a/DT
small/JJ
French/JJ
merchant/NN
bank/NN
that/IN
Deutsche/NNP
Bank/NNP
had/VBD
looked/VBN
at/IN
and/CC
passed/VBD
over/IN
./.
Commerzbank/NNP
had/VBD
hoped/VBN
to/TO
buy/VB
a/DT
stake/NN
in/IN
Credit/NNP
Lyonnais/NNP
,/,
until/IN
the/DT
Socialists/NNS
returned/VBD
to/TO
government/NN
last/JJ
year/NN
and/CC
canceled/VBD
plans/NNS
to/TO
privatize/VB
the/DT
large/JJ
French/JJ
bank/NN
./.
Deutsche/NNP
Bank/NNP
has/VBZ
actively/RB
sought/VBN
a/DT
French/JJ
acquisition/NN
for/IN
at/IN
least/JJS
two/CD
years/NNS
./.
Lately/RB
,/,
analysts/NNS
say/VBP
,/,
Deutsche/NNP
Bank/NNP
has/VBZ
shocked/VBN
some/DT
in/IN
the/DT
French/JJ
financial/JJ
community/NN
by/IN
indicating/VBG
it/PRP
wants/VBZ
a/DT
strong/JJ
bank/NN
with/IN
a/DT
large/JJ
number/NN
of/IN
branches/NNS
./.
``/``
We/PRP
are/VBP
still/RB
looking/VBG
,/,
''/''
said/VBD
a/DT
Deutsche/NNP
Bank/NNP
spokesman/NN
./.
``/``
The/DT
banks/NNS
we/PRP
think/VBP
would/MD
fit/VB
into/IN
our/PRP$
concept/NN
are/VBP
either/DT
government-owned/JJ
or/CC
not/RB
for/IN
sale/NN
,/,
though/IN
Deutsche/NNP
Bank/NNP
would/MD
be/VB
able/JJ
to/TO
pay/VB
a/DT
good/JJ
price/NN
./.
''/''
While/IN
Allianz/NNP
officials/NNS
were/VBD
n't/RB
willing/JJ
to/TO
comment/VB
in/IN
any/DT
detail/NN
on/IN
their/PRP$
plans/NNS
,/,
they/PRP
said/VBD
Allianz/NNP
currently/RB
holds/VBZ
between/IN
5/CD
%/NN
and/CC
10/CD
%/NN
of/IN
Navigation/NNP
Mixte/NNP
,/,
an/DT
apparent/JJ
increase/NN
from/IN
the/DT
5/CD
%/NN
stake/NN
that/IN
Navigation/NNP
Mixte/NNP
officials/NNS
had/VBD
earlier/RBR
announced/VBN
./.
Paris/NNP
market/NN
sources/NNS
said/VBD
they/PRP
believed/VBD
Allianz/NNP
was/VBD
buying/VBG
yesterday/NN
morning/NN
,/,
and/CC
Navigation/NNP
Mixte/NNP
moved/VBD
up/RB
108/CD
francs/NNS
$/$
17.19/CD
1,908/CD
francs/NNS
in/IN
heavy/JJ
trading/NN
./.
It/PRP
was/VBD
the/DT
first/JJ
day/NN
of/IN
trading/NN
following/VBG
the/DT
suspension/NN
of/IN
Navigation/NNP
Mixte/NNP
shares/NNS
last/JJ
Monday/NNP
,/,
when/WRB
Paribas/NNP
announced/VBD
its/PRP$
plan/NN
to/TO
pay/VB
1,850/CD
francs/NNS
for/IN
each/DT
Navigation/NNP
Mixte/NNP
share/NN
./.
Allianz/NNP
also/RB
holds/VBZ
a/DT
50/CD
%/NN
stake/NN
in/IN
Navigation/NNP
Mixte/NNP
's/POS
insurance/NN
subsidiary/NN
,/,
one/CD
of/IN
France/NNP
's/POS
largest/JJS
insurance/NN
groups/NNS
,/,
which/WDT
it/PRP
bought/VBD
for/IN
about/RB
6.5/CD
billion/CD
francs/NNS
just/RB
before/RB
Paribas/NNP
launched/VBD
its/PRP$
bid/NN
./.
Navigation/NNP
Mixte/NNP
holds/VBZ
the/DT
remaining/JJ
50/CD
%/NN
./.
Allianz/NNP
said/VBD
in/IN
its/PRP$
statement/NN
that/IN
it/PRP
was/VBD
acting/VBG
to/TO
protect/VB
that/DT
interest/NN
,/,
which/WDT
ties/VBZ
it/PRP
to/TO
Navigation/NNP
Mixte/NNP
as/IN
a/DT
partner/NN
./.
Allianz/NNP
's/POS
statement/NN
stressed/VBD
the/DT
company/NN
's/VBZ
previously/RB
announced/VBN
position/NN
that/IN
Paribas/NNP
's/POS
offer/NN
price/NN
is/VBZ
too/RB
low/JJ
./.
Allianz/NNP
also/RB
suggested/VBD
,/,
without/IN
saying/VBG
so/RB
directly/RB
,/,
that/IN
it/PRP
regrets/VBZ
that/IN
Paribas/NNP
is/VBZ
n't/RB
bidding/VBG
for/IN
all/DT
of/IN
Navigation/NNP
Mixte/NNP
's/POS
shares/NNS
./.
The/DT
problem/NN
here/RB
,/,
analysts/NNS
say/VBP
,/,
is/VBZ
that/IN
if/IN
Paribas/NNP
wins/VBZ
its/PRP$
66.7/CD
%/NN
,/,
remaining/JJ
Navigation/NNP
Mixte/NNP
shares/NNS
will/MD
fall/VB
in/IN
value/NN
./.
That/DT
displeases/VBZ
many/JJ
current/JJ
holders/NNS
,/,
such/JJ
as/IN
Allianz/NNP
,/,
which/WDT
could/MD
n't/RB
be/VB
sure/JJ
of/IN
selling/VBG
all/DT
their/PRP$
shares/NNS
if/IN
they/PRP
tendered/VBD
to/TO
Paribas/NNP
./.
The/DT
Allianz/NNP
statement/NN
led/VBD
to/TO
speculation/NN
that/IN
Allianz/NNP
eventually/RB
could/MD
sell/VB
to/TO
Paribas/NNP
./.
That/DT
would/MD
be/VB
bad/JJ
news/NN
for/IN
Navigation/NNP
Mixte/NNP
's/POS
current/JJ
management/NN
,/,
which/WDT
was/VBD
counting/VBG
on/IN
Allianz/NNP
to/TO
help/VB
fend/VB
off/RP
Paribas/NNP
./.
Allianz/NNP
did/VBD
n't/RB
say/VB
whom/WP
,/,
if/IN
anyone/NN
,/,
it/PRP
will/MD
support/VB
./.
It/PRP
said/VBD
simply/RB
that/IN
it/PRP
will/MD
boost/VB
its/PRP$
Navigation/NNP
Mixte/NNP
stake/NN
as/IN
it/PRP
sees/VBZ
fit/JJ
over/IN
the/DT
coming/VBG
days/NNS
to/TO
protect/VB
itself/PRP
,/,
as/RB
long/RB
as/IN
it/PRP
has/VBZ
French/JJ
regulatory/JJ
officials/NNS
'/POS
approval/NN
./.
Paribas/NNP
currently/RB
intends/VBZ
to/TO
offer/VB
1,850/CD
francs/NNS
a/DT
share/NN
for/IN
Navigation/NNP
Mixte/NNP
shares/NNS
that/WDT
receive/VBP
full/JJ
dividends/NNS
this/DT
year/NN
./.
It/PRP
is/VBZ
to/TO
offer/VB
1,800/CD
francs/NNS
for/IN
shares/NNS
created/VBN
on/IN
July/NNP
1/CD
,/,
which/WDT
receive/VBP
partial/JJ
dividends/NNS
./.
Alternatively/RB
,/,
it/PRP
would/MD
offer/VB
to/TO
swap/VB
three/CD
Paribas/NNP
shares/NNS
for/IN
one/CD
Navigation/NNP
Mixte/NNP
share/NN
./.
Paribas/NNP
already/RB
holds/VBZ
about/RB
18.7/CD
%/NN
of/IN
Navigation/NNP
Mixte/NNP
,/,
and/CC
the/DT
acquisition/NN
of/IN
the/DT
additional/JJ
48/CD
%/NN
would/MD
cost/VB
it/PRP
about/RB
11/CD
billion/CD
francs/NNS
under/IN
its/PRP$
current/JJ
bid/NN
./.
The/DT
bid/NN
values/VBZ
Navigation/NNP
Mixte/NNP
at/IN
around/RB
23/CD
billion/CD
francs/NNS
,/,
depending/VBG
on/IN
how/WRB
many/JJ
holders/NNS
of/IN
Navigation/NNP
Mixte/NNP
warrants/NNS
exchange/VBP
them/PRP
for/IN
shares/NNS
before/RB
the/DT
bid/NN
expires/VBZ
./.
Penn/NNP
Central/NNP
Corp./NNP
,/,
Cincinnati/NNP
,/,
said/VBD
it/PRP
agreed/VBD
in/IN
principle/NN
to/TO
acquire/VB
Noranda/NNP
Inc./NNP
's/POS
Carol/NNP
Cable/NNP
Co./NNP
unit/NN
for/IN
$/$
177/CD
million/CD
./.
The/DT
company/NN
said/VBD
Carol/NNP
Cable/NNP
,/,
based/VBN
in/IN
Pawtucket/NNP
,/,
R.I./NNP
,/,
is/VBZ
a/DT
leading/VBG
supplier/NN
of/IN
electrical/JJ
and/CC
electronic/JJ
wire/NN
and/CC
cable/NN
for/IN
the/DT
distributor/NN
,/,
retail/JJ
and/CC
original/JJ
equipment/NN
manufacturer/NN
markets/NNS
./.
Carol/NNP
Cable/NNP
,/,
which/WDT
operates/VBZ
12/CD
manufacturing/NN
plants/NNS
,/,
had/VBD
operating/NN
profit/NN
of/IN
$/$
11.7/CD
million/CD
on/IN
sales/NNS
of/IN
$/$
153.3/CD
million/CD
for/IN
the/DT
first/JJ
six/CD
months/NNS
of/IN
this/DT
year/NN
and/CC
operating/NN
profit/NN
of/IN
$/$
25.6/CD
million/CD
on/IN
sales/NNS
of/IN
$/$
294.6/CD
million/CD
for/IN
all/DT
of/IN
1988/CD
./.
The/DT
maker/NN
of/IN
telecommunications/NNS
and/CC
defense/NN
equipment/NN
said/VBD
Carol/NNP
Cable/NNP
's/POS
portfolio/NN
and/CC
market/NN
focus/NN
would/MD
complement/VB
the/DT
company/NN
's/POS
current/JJ
wire/NN
and/CC
cable/NN
businesses/NNS
./.
The/DT
plan/NN
is/VBZ
subject/JJ
to/TO
a/DT
satisfactory/JJ
due/JJ
diligence/NN
investigation/NN
of/IN
Carol/NNP
Cable/NNP
by/IN
Penn/NNP
Central/NNP
,/,
a/DT
definitive/JJ
agreement/NN
and/CC
regulatory/JJ
approvals/NNS
./.
Fletcher/NNP
Challenge/NNP
Ltd./NNP
said/VBD
its/PRP$
Petrocorp/NNP
unit/NN
agreed/VBD
to/TO
acquire/VB
certain/JJ
Alberta/NNP
oil/NN
and/CC
gas/NN
interests/NNS
from/IN
Amoco/NNP
Corp./NNP
's/POS
Canadian/JJ
unit/NN
,/,
for/IN
about/RB
130/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
110.6/CD
million/CD
Fletcher/NNP
Challenge/NNP
,/,
a/DT
big/JJ
New/NNP
Zealand-based/JJ
forest/NN
products/NNS
concern/NN
with/IN
forestry/NN
operations/NNS
in/IN
Canada/NNP
,/,
said/VBD
the/DT
assets/NNS
include/VBP
stakes/NNS
in/IN
four/CD
natural/JJ
gas/NN
fields/NNS
and/CC
one/CD
oil/NN
field/NN
near/IN
Provost/NNP
,/,
Alberta/NNP
,/,
plus/IN
gas/NN
processing/NN
facilities/NNS
and/CC
about/RB
247,000/CD
acres/NNS
of/IN
undeveloped/JJ
land/NN
./.
The/DT
proposed/VBN
purchase/NN
requires/VBZ
approval/NN
from/IN
Investment/NNP
Canada/NNP
,/,
which/WDT
monitors/VBZ
large/JJ
foreign/JJ
investments/NNS
in/IN
Canada/NNP
./.
Amoco/NNP
Canada/NNP
Petroleum/NNP
Co./NNP
,/,
which/WDT
operates/VBZ
the/DT
major/JJ
properties/NNS
included/VBN
in/IN
the/DT
asset/NN
package/NN
,/,
said/VBD
the/DT
sale/NN
is/VBZ
part/NN
of/IN
a/DT
plan/NN
to/TO
streamline/VB
its/PRP$
assets/NNS
./.
Petrocorp/NNP
,/,
a/DT
New/NNP
Zealand-based/JJ
oil/NN
and/CC
gas/NN
producer/NN
,/,
said/VBD
the/DT
planned/VBN
purchase/NN
would/MD
be/VB
its/PRP$
first/JJ
oil/NN
and/CC
gas/NN
acquisition/NN
outside/IN
its/PRP$
home/NN
country/NN
,/,
and/CC
would/MD
form/VB
the/DT
basis/NN
for/IN
a/DT
new/JJ
stand-alone/JJ
exploration/NN
and/CC
production/NN
unit/NN
in/IN
Canada/NNP
./.
MiniScribe/NNP
Corp./NNP
,/,
Longmont/NNP
,/,
Colo./NNP
,/,
said/VBD
it/PRP
introduced/VBD
a/DT
one-inch/JJ
high/JJ
,/,
80-megabyte/JJ
hard/JJ
disk/NN
drive/NN
that/IN
it/PRP
hopes/VBZ
will/MD
prove/VB
popular/JJ
with/IN
makers/NNS
of/IN
high-performance/JJ
laptop/JJ
and/CC
portable/JJ
computers/NNS
./.
The/DT
troubled/JJ
disk/NN
drive/NN
maker/NN
aims/VBZ
with/IN
the/DT
new/JJ
3/CD
1\/2-inch/JJ
disks/NNS
to/TO
revive/VB
its/PRP$
reputation/NN
and/CC
sales/NNS
growth/NN
./.
MiniScribe/NNP
said/VBD
the/DT
disk/NN
drives/NNS
have/VBP
more/JJR
memory/NN
capacity/NN
than/IN
other/JJ
disks/NNS
that/DT
size/NN
./.
MiniScribe/NNP
said/VBD
it/PRP
expects/VBZ
to/TO
begin/VB
full/JJ
volume/NN
production/NN
of/IN
the/DT
drives/NNS
in/IN
the/DT
U.S./NNP
and/CC
Singapore/NNP
in/IN
the/DT
first/JJ
quarter/NN
next/JJ
year/NN
./.
A/DT
drive/NN
with/IN
120/CD
megabytes/NNS
of/IN
capacity/NN
is/VBZ
scheduled/VBN
for/IN
release/NN
during/IN
the/DT
third/JJ
quarter/NN
of/IN
1990/CD
./.
MiniScribe/NNP
has/VBZ
been/VBN
on/IN
the/DT
rocks/NNS
since/IN
it/PRP
disclosed/VBD
early/RB
this/DT
year/NN
that/IN
its/PRP$
earnings/NNS
reports/NNS
for/IN
1988/CD
were/VBD
n't/RB
accurate/JJ
./.
After/IN
an/DT
internal/JJ
investigation/NN
,/,
the/DT
company/NN
found/VBD
that/IN
senior/JJ
officials/NNS
used/VBD
a/DT
variety/NN
of/IN
schemes/NNS
to/TO
fabricate/VB
sales/JJ
gains/NNS
,/,
including/VBG
counting/NN
shipments/NNS
of/IN
bricks/NNS
and/CC
defective/JJ
drives/NNS
as/IN
sales/NNS
./.
The/DT
New/NNP
York/NNP
Times/NNP
Co./NNP
said/VBD
it/PRP
reached/VBD
a/DT
settlement/NN
with/IN
independent/JJ
home/NN
delivery/NN
dealers/NNS
in/IN
the/DT
metropolitan/JJ
New/NNP
York/NNP
area/NN
that/WDT
will/MD
free/VB
the/DT
newspaper/NN
to/TO
expand/VB
home/NN
delivery/NN
circulation/NN
./.
The/DT
settlement/NN
stemmed/VBD
from/IN
a/DT
lawsuit/NN
the/DT
dealers/NNS
filed/VBD
in/IN
1982/CD
when/WRB
the/DT
Times/NNP
began/VBD
its/PRP$
own/JJ
competing/VBG
direct/JJ
delivery/NN
service/NN
./.
The/DT
pact/NN
calls/VBZ
for/IN
the/DT
Times/NNP
to/TO
pay/VB
dealers/NNS
$/$
3.6/CD
million/CD
over/IN
six/CD
years/NNS
,/,
as/RB
well/RB
as/IN
other/JJ
payments/NNS
in/IN
the/DT
form/NN
of/IN
subsidies/NNS
over/IN
three/CD
years/NNS
,/,
based/VBN
on/IN
the/DT
number/NN
of/IN
``/``
new/JJ
customers/NNS
started/VBN
by/IN
the/DT
dealers/NNS
and/CC
on/IN
pricing/VBG
structures/NNS
,/,
''/''
the/DT
Times/NNP
said/VBD
./.
The/DT
amount/NN
of/IN
the/DT
settlement/NN
will/MD
be/VB
taken/VBN
as/IN
a/DT
charge/NN
against/IN
earnings/NNS
in/IN
the/DT
fourth/JJ
quarter/NN
./.
The/DT
settlement/NN
,/,
which/WDT
involves/VBZ
most/RBS
of/IN
the/DT
300/CD
independent/JJ
newspaper/NN
dealers/NNS
in/IN
the/DT
New/NNP
York/NNP
area/NN
,/,
will/MD
allow/VB
the/DT
Times/NNP
to/TO
freely/RB
operate/VB
its/PRP$
own/JJ
direct/JJ
home/NN
delivery/NN
system/NN
./.
Home/NN
delivery/NN
is/VBZ
the/DT
fastest/JJS
growing/VBG
segment/NN
of/IN
the/DT
Times/NNP
's/POS
1.1/CD
million/CD
daily/JJ
circulation/NN
./.
Currently/RB
,/,
about/RP
60/CD
%/NN
of/IN
home/NN
delivery/NN
subscribers/NNS
in/IN
the/DT
New/NNP
York/NNP
area/NN
receive/VBP
the/DT
paper/NN
directly/RB
from/IN
the/DT
Times/NNP
./.
Mercury/NNP
Savings/NNP
&/CC
Loan/NNP
Association/NNP
,/,
Huntington/NNP
Beach/NNP
,/,
Calif./NNP
,/,
reported/VBD
a/DT
third-quarter/JJ
loss/NN
of/IN
$/$
3.9/CD
million/CD
,/,
or/CC
61/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
net/JJ
income/NN
of/IN
$/$
1.4/CD
million/CD
,/,
or/CC
22/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
year-earlier/JJ
quarter/NN
./.
Mercury/NNP
attributed/VBD
the/DT
loss/NN
to/TO
rapid/JJ
prepayments/NNS
of/IN
loans/NNS
and/CC
costs/NNS
incurred/VBN
in/IN
refinancing/VBG
many/JJ
house/NN
loans/NNS
this/DT
past/JJ
spring/NN
and/CC
summer/NN
,/,
when/WRB
interest/NN
rates/NNS
dipped/VBD
./.
The/DT
thrift/NN
hired/VBD
an/DT
investment/NN
banker/NN
earlier/RBR
this/DT
month/NN
to/TO
advise/VB
it/PRP
regarding/VBG
a/DT
possible/JJ
sale/NN
or/CC
merger/NN
./.
Mercury/NNP
also/RB
is/VBZ
shrinking/VBG
itself/PRP
,/,
part/NN
of/IN
its/PRP$
plan/NN
to/TO
change/VB
its/PRP$
emphasis/NN
from/IN
buying/VBG
mortgage/NN
loans/NNS
from/IN
mortgage/NN
brokers/NNS
to/TO
making/VBG
loans/NNS
directly/RB
./.
Such/JJ
a/DT
focus/NN
is/VBZ
``/``
more/RBR
profitable/JJ
,/,
more/RBR
efficient/JJ
and/CC
gives/VBZ
us/PRP
a/DT
greater/JJR
sense/NN
of/IN
control/NN
,/,
''/''
said/VBD
William/NNP
A./NNP
Shane/NNP
,/,
Mercury/NNP
's/POS
senior/JJ
executive/JJ
vice/NN
president/NN
./.
As/IN
of/IN
Sept./NNP
30/CD
,/,
Mercury/NNP
's/POS
assets/NNS
were/VBD
$/$
2.25/CD
billion/CD
,/,
down/RB
from/IN
$/$
2.62/CD
billion/CD
a/DT
year/NN
ago/RB
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Mercury/NNP
posted/VBD
a/DT
loss/NN
of/IN
$/$
5.4/CD
million/CD
,/,
or/CC
86/CD
cents/NNS
share/NN
,/,
against/IN
net/JJ
income/NN
of/IN
$/$
4/CD
million/CD
,/,
or/CC
63/CD
cents/NNS
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Mercury/NNP
shares/NNS
closed/VBD
yesterday/NN
at/IN
$/$
4.625/CD
,/,
up/RB
50/CD
cents/NNS
,/,
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
Bancroft/NNP
Convertible/NNP
Fund/NNP
Inc./NNP
,/,
New/NNP
York/NNP
,/,
likely/RB
will/MD
reject/VB
a/DT
renewed/VBN
offer/NN
from/IN
Florida/NNP
investor/NN
Robert/NNP
I./NNP
Green/NNP
to/TO
buy/VB
Bancroft/NNP
for/IN
$/$
18.95/CD
a/DT
share/NN
./.
Sigmund/NNP
Levine/NNP
,/,
Bancroft/NNP
secretary/NN
and/CC
treasurer/NN
,/,
said/VBD
the/DT
closed-end/JJ
fund/NN
's/POS
directors/NNS
will/MD
consider/VB
Mr./NNP
Green/NNP
's/POS
offer/NN
in/IN
a/DT
couple/NN
of/IN
weeks/NNS
at/IN
a/DT
regular/JJ
meeting/NN
./.
``/``
He/PRP
has/VBZ
n't/RB
added/VBD
anything/NN
,/,
''/''
Mr./NNP
Levine/NNP
said/VBD
,/,
predicting/VBG
the/DT
board/NN
will/MD
again/RB
reject/VB
Mr./NNP
Green/NNP
's/POS
proposal/NN
./.
In/IN
a/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
filing/NN
,/,
Mr./NNP
Green/NNP
said/VBD
he/PRP
had/VBD
boosted/VBN
his/PRP$
holdings/NNS
in/IN
Bancroft/NNP
common/JJ
to/TO
10.4/CD
%/NN
from/IN
8.5/CD
%/NN
,/,
and/CC
renewed/VBN
an/DT
offer/NN
he/PRP
made/VBD
in/IN
March/NNP
to/TO
acquire/VB
the/DT
fund/NN
./.
Mr./NNP
Levine/NNP
noted/VBD
that/DT
Bancroft/NNP
's/POS
shares/NNS
have/VBP
been/VBN
trading/VBG
at/IN
or/CC
above/IN
Mr./NNP
Green/NNP
's/POS
offering/NN
price/NN
for/IN
the/DT
last/JJ
several/JJ
months/NNS
./.
He/PRP
said/VBD
Bancroft/NNP
attorneys/NNS
are/VBP
scheduled/VBN
to/TO
meet/VB
with/IN
Mr./NNP
Green/NNP
's/POS
attorneys/NNS
in/IN
Delaware/NNP
Chancery/NNP
Court/NNP
at/IN
the/DT
end/NN
of/IN
this/DT
week/NN
to/TO
respond/VB
to/TO
the/DT
investor/NN
's/POS
request/NN
for/IN
company/NN
records/NNS
for/IN
the/DT
past/JJ
five/CD
years/NNS
./.
Mr./NNP
Green/NNP
could/MD
n't/RB
be/VB
reached/VBN
./.
Giant/NNP
Group/NNP
said/VBD
a/DT
federal/JJ
court/NN
in/IN
Delaware/NNP
has/VBZ
denied/VBN
a/DT
motion/NN
by/IN
Rally/NNP
's/POS
Inc./NN
seeking/VBG
to/TO
block/VB
a/DT
group/NN
led/VBD
by/IN
Giant/NNP
Chairman/NNP
Burt/NNP
Sugarman/NNP
from/IN
acquiring/VBG
more/JJR
of/IN
the/DT
company/NN
's/POS
shares/NNS
./.
Rally/NNP
's/POS
,/,
a/DT
fast-food/NN
chain/NN
based/VBN
in/IN
Louisville/NNP
,/,
Ky./NNP
,/,
is/VBZ
contending/VBG
that/IN
Mr./NNP
Sugarman/NNP
and/CC
two/CD
other/JJ
company/NN
directors/NNS
failed/VBD
to/TO
disclose/VB
to/TO
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
that/IN
they/PRP
intended/VBD
to/TO
acquire/VB
a/DT
big/JJ
Rally/NNP
stake/NN
./.
Mr./NNP
Sugarman/NNP
has/VBZ
in/IN
turn/NN
contended/VBN
that/IN
the/DT
other/JJ
major/JJ
shareholder/NN
group/NN
--/:
whose/WP$
interests/NNS
are/VBP
represented/VBN
by/IN
three/CD
other/JJ
directors/NNS
connected/VBN
to/TO
trusts/NNS
in/IN
the/DT
name/NN
of/IN
the/DT
children/NNS
of/IN
the/DT
company/NN
's/POS
founder/NN
,/,
James/NNP
Patterson/NNP
--/:
has/VBZ
ties/NNS
to/TO
a/DT
competing/VBG
fast/JJ
food/NN
chain/NN
,/,
Wendy/NNP
's/POS
International/NNP
Inc/NNP
./.
The/DT
company/NN
last/JJ
week/NN
assembled/VBD
a/DT
three-member/JJ
committee/NN
of/IN
directors/NNS
aligned/VBN
with/IN
neither/DT
side/NN
to/TO
analyze/VB
the/DT
situation/NN
./.
Each/DT
group/NN
controls/VBZ
more/JJR
than/IN
40/CD
%/NN
of/IN
Rally/NNP
's/POS
stock/NN
./.
The/DT
company/NN
just/RB
went/VBD
public/JJ
earlier/RBR
this/DT
month/NN
./.
Rally/NNP
's/POS
had/VBD
no/DT
comment/NN
,/,
but/CC
was/VBD
expected/VBN
to/TO
make/VB
an/DT
announcement/NN
this/DT
morning/NN
about/IN
the/DT
situation/NN
./.
Singer/NNP
Bette/NNP
Midler/NNP
won/VBD
a/DT
$/$
400,000/CD
federal/JJ
court/NN
jury/NN
verdict/NN
against/IN
Young/NNP
&/CC
Rubicam/NNP
in/IN
a/DT
case/NN
that/WDT
threatens/VBZ
a/DT
popular/JJ
advertising/NN
industry/NN
practice/NN
of/IN
using/VBG
``/``
sound-alike/JJ
''/''
performers/NNS
to/TO
tout/VB
products/NNS
./.
The/DT
decision/NN
in/IN
Los/NNP
Angeles/NNP
federal/JJ
court/NN
stems/VBZ
from/IN
a/DT
1985/CD
Mercury/NNP
Sable/NNP
TV/NN
ad/NN
that/IN
Young/NNP
&/CC
Rubicam/NNP
worked/VBD
up/RP
for/IN
Ford/NNP
Motor/NNP
Co/NNP
./.
The/DT
ad/NN
agency/NN
had/VBD
approached/VBN
Ms./NNP
Midler/NNP
about/IN
appearing/VBG
,/,
but/CC
she/PRP
declined/VBD
,/,
citing/VBG
a/DT
longstanding/JJ
policy/NN
of/IN
refusing/VBG
advertising/NN
work/NN
./.
The/DT
agency/NN
then/RB
turned/VBD
to/TO
a/DT
former/JJ
backup/NN
singer/NN
for/IN
Ms./NNP
Midler/NNP
who/WP
appeared/VBD
in/IN
the/DT
ad/NN
and/CC
crooned/VBD
what/WP
was/VBD
generally/RB
considered/VBN
a/DT
more/RBR
than/IN
credible/JJ
imitation/NN
of/IN
Ms./NNP
Midler/NNP
's/POS
1973/CD
hit/NN
song/NN
``/``
Do/NNP
You/PRP
Wanna/NNP
Dance/NNP
./.
''/''
The/DT
appeals/NNS
court/NN
held/VBD
:/:
``/``
When/WRB
a/DT
distinctive/JJ
voice/NN
of/IN
a/DT
professional/JJ
singer/NN
is/VBZ
widely/RB
known/VBN
and/CC
is/VBZ
deliberately/RB
imitated/VBN
in/IN
order/NN
to/TO
sell/VB
a/DT
product/NN
,/,
the/DT
sellers/NNS
have/VBP
appropriated/VBN
what/WP
is/VBZ
not/RB
theirs/JJ
./.
''/''
The/DT
judge/NN
in/IN
the/DT
jury/NN
trial/NN
said/VBD
there/EX
was/VBD
insufficient/JJ
evidence/NN
to/TO
hold/VB
Ford/NNP
liable/JJ
in/IN
the/DT
case/NN
./.
In/IN
a/DT
statement/NN
,/,
Young/NNP
&/CC
Rubicam/NNP
called/VBD
the/DT
award/NN
``/``
unfortunate/JJ
but/CC
bearable/JJ
./.
''/''
Peter/NNP
Laird/NNP
,/,
a/DT
Los/NNP
Angeles/NNP
lawyer/NN
for/IN
Ms./NNP
Midler/NNP
,/,
said/VBD
,/,
``/``
We/PRP
believe/VBP
that/IN
the/DT
verdict/NN
reaffirms/VBZ
her/PRP$
position/NN
and/CC
our/PRP$
position/NN
that/IN
advertisers/NNS
and/CC
advertising/NN
agencies/NNS
can/MD
not/RB
with/IN
impunity/NN
imitate/VBP
the/DT
voices/NNS
of/IN
well-known/JJ
performers/NNS
./.
That/DT
is/VBZ
a/DT
property/NN
right/NN
that/WDT
belongs/VBZ
to/TO
the/DT
performer/JJ
./.
''/''
The/DT
award/NN
,/,
although/IN
far/RB
less/JJR
than/IN
the/DT
$/$
10/CD
million/CD
,/,
including/VBG
punitive/JJ
damages/NNS
,/,
that/IN
Ms./NNP
Midler/NNP
sought/VBD
,/,
is/VBZ
likely/JJ
to/TO
force/VB
Madison/NNP
Avenue/NNP
to/TO
further/RBR
rethink/VB
how/WRB
they/PRP
use/VBP
famous/JJ
songs/NNS
in/IN
ads/NNS
./.
Last/JJ
year/NN
's/POS
appeals/NNS
court/NN
decision/NN
,/,
for/IN
instance/NN
,/,
spawned/VBD
several/JJ
suits/NNS
,/,
reportedly/RB
including/VBG
a/DT
recent/JJ
action/NN
by/IN
the/DT
heirs/NNS
of/IN
singer/NN
Bobby/NNP
Darin/NNP
against/IN
McDonald/NNP
's/POS
Corp./NNP
over/IN
its/PRP$
``/``
Mac/NNP
Tonight/NNP
''/''
TV/NN
commercials/NNS
,/,
a/DT
rough/JJ
parody/NN
of/IN
Mr./NNP
Darin/NNP
's/POS
``/``
Mack/NNP
the/DT
Knife/NNP
''/''
trademark/NN
./.
The/DT
appeals-court/NN
decision/NN
last/JJ
year/NN
was/VBD
particularly/RB
surprising/JJ
because/IN
the/DT
same/JJ
court/NN
had/VBD
dismissed/VBN
a/DT
similar/JJ
case/NN
in/IN
1970/CD
involving/VBG
singer/NN
Nancy/NNP
Sinatra/NNP
and/CC
a/DT
tire/NN
ad/NN
--/:
also/RB
a/DT
Young/NNP
&/CC
Rubicam/NNP
product/NN
./.
Ms./NNP
Sinatra/NNP
sued/VBD
over/IN
the/DT
use/NN
of/IN
her/PRP$
``/``
These/DT
Boots/NNP
are/NNP
Made/NNP
for/IN
Walkin/NNP
'/''
''/''
song/NN
in/IN
the/DT
ad/NN
./.
At/IN
that/DT
time/NN
,/,
the/DT
court/NN
held/VBD
that/IN
such/JJ
a/DT
claim/NN
would/MD
interfere/VB
with/IN
federal/JJ
copyright/NN
law/NN
,/,
which/WDT
has/VBZ
always/RB
cracked/VBN
down/RP
on/IN
the/DT
unauthorized/JJ
copying/NN
of/IN
songs/NNS
and/CC
musical/JJ
compositions/NNS
but/CC
never/RB
actual/JJ
performances/NNS
./.
``/``
One/CD
thing/NN
that/WDT
is/VBZ
a/DT
little/JJ
unnerving/JJ
is/VBZ
that/IN
you/PRP
had/VBD
three/CD
old/JJ
men/NNS
on/IN
the/DT
court/NN
of/IN
appeals/NNS
in/IN
California/NNP
coming/VBG
up/RP
with/IN
a/DT
statement/NN
that/IN
Nancy/NNP
Sinatra/NNP
is/VBZ
not/RB
distinctive/JJ
but/CC
that/IN
Bette/NNP
Midler/NNP
is/VBZ
./.
I/PRP
am/VBP
not/RB
sure/JJ
that/IN
judges/NNS
,/,
many/DT
of/IN
whom/WP
I/PRP
like/VBP
very/RB
much/RB
,/,
are/VBP
proper/JJ
repositories/NNS
for/IN
making/VBG
distinctions/NNS
about/IN
pop/NN
singers/NNS
,/,
''/''
said/VBD
Richard/NNP
Kurnit/NNP
,/,
a/DT
New/NNP
York/NNP
advertising/NN
lawyer/NN
./.
Nonetheless/RB
,/,
Mr./NNP
Kurnit/NNP
said/VBD
that/IN
the/DT
latest/JJS
decisions/NNS
are/VBP
having/VBG
a/DT
chilling/VBG
effect/NN
./.
``/``
It/PRP
has/VBZ
made/VBN
people/NNS
think/VB
twice/RB
about/IN
how/WRB
they/PRP
use/VBP
music/NN
and/CC
is/VBZ
forcing/VBG
them/PRP
to/TO
be/VB
more/RBR
circumspect/JJ
about/IN
doing/VBG
a/DT
particular/JJ
rendition/NN
of/IN
a/DT
song/NN
in/IN
its/PRP$
most/RBS
famous/JJ
form/NN
,/,
''/''
he/PRP
said/VBD
./.
Joanne/NNP
Lipman/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
James/NNP
River/NNP
Corp./NNP
,/,
Richmond/NNP
,/,
Va./NNP
,/,
said/VBD
it/PRP
acquired/VBD
the/DT
tissue/NN
operations/NNS
of/IN
Buhrmann-Tetterode/NNP
N.V./NNP
of/IN
the/DT
Netherlands/NNP
for/IN
about/RB
$/$
77/CD
million/CD
./.
The/DT
Dutch/JJ
unit/NN
,/,
known/VBN
as/IN
Celtona/NNP
B.V./NNP
,/,
is/VBZ
a/DT
leading/VBG
maker/NN
of/IN
consumer/NN
and/CC
away-from-home/JJ
tissue/NN
products/NNS
for/IN
the/DT
Benelux/NNP
region/NN
./.
In/IN
addition/NN
,/,
the/DT
acquisition/NN
includes/VBZ
production/NN
assets/NNS
of/IN
Invercon/NNP
Papermils/NNP
,/,
a/DT
maker/NN
of/IN
household/NN
tissue/NN
products/NNS
for/IN
the/DT
U.K./NNP
and/CC
Ireland/NNP
./.
The/DT
combined/VBN
operations/NNS
had/VBD
1988/CD
revenue/NN
of/IN
about/RB
$/$
100/CD
million/CD
./.
James/NNP
River/NNP
,/,
a/DT
maker/NN
of/IN
pulp/NN
,/,
paper/NN
and/CC
plastic/NN
products/NNS
,/,
already/RB
has/VBZ
interests/NNS
in/IN
tissue/NN
businesses/NNS
in/IN
France/NNP
,/,
Spain/NNP
,/,
Italy/NNP
and/CC
Turkey/NNP
./.
The/DT
company/NN
said/VBD
it/PRP
plans/VBZ
to/TO
form/VB
European/JJ
ventures/NNS
with/IN
Italian/JJ
and/CC
Finnish/JJ
companies/NNS
./.
The/DT
Celtona/NNP
operations/NNS
would/MD
become/VB
part/NN
of/IN
those/DT
ventures/NNS
./.
Vitro/NNP
S.A./NNP
of/IN
Monterrey/NNP
,/,
Mexico/NNP
,/,
said/VBD
its/PRP$
THR/NNP
Corp./NNP
subsidiary/NN
has/VBZ
entered/VBN
into/IN
definitive/JJ
loan/NN
agreements/NNS
in/IN
connection/NN
with/IN
Vitro/NNP
's/POS
$/$
21.25-a-share/JJ
tender/NN
offer/NN
for/IN
Anchor/NNP
Glass/NNP
Container/NNP
Corp/NNP
./.
The/DT
agreements/NNS
are/VBP
with/IN
Security/NNP
Pacific/NNP
National/NNP
Bank/NNP
and/CC
an/DT
affiliate/NN
of/IN
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
Securities/NNP
Corp/NNP
./.
Proceeds/NNS
of/IN
the/DT
loan/NN
agreement/NN
,/,
together/RB
with/IN
funds/NNS
from/IN
Vitro/NNP
,/,
will/MD
permit/VB
the/DT
purchase/NN
of/IN
all/DT
shares/NNS
outstanding/JJ
of/IN
Anchor/NNP
and/CC
the/DT
payment/NN
of/IN
all/DT
related/VBN
costs/NNS
and/CC
expenses/NNS
./.
Vitro/NNP
said/VBD
the/DT
definitive/JJ
agreements/NNS
require/VBP
that/IN
Anchor/NNP
obtain/VB
a/DT
waiver/NN
from/IN
its/PRP$
bank/NN
lenders/NNS
of/IN
existing/VBG
covenant/NN
defaults/NNS
under/IN
its/PRP$
bank/NN
facilities/NNS
./.
Since/IN
Anchor/NNP
is/VBZ
still/RB
seeking/VBG
this/DT
waiver/NN
,/,
Vitro/NNP
said/VBD
the/DT
tender/NN
offer/NN
is/VBZ
being/VBG
extended/VBN
until/IN
5/CD
p.m./NN
EST/NNP
tomorrow/NN
./.
The/DT
dollar/NN
finished/VBD
mostly/RB
stronger/JJR
yesterday/NN
,/,
boosted/VBN
by/IN
a/DT
modest/JJ
recovery/NN
in/IN
share/NN
prices/NNS
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
climbed/VBD
6.76/CD
points/NNS
in/IN
a/DT
spate/NN
of/IN
bargain-hunting/NN
following/VBG
last/JJ
week/NN
's/POS
declines/NNS
./.
``/``
Attention/NN
is/VBZ
fixed/VBN
on/IN
the/DT
stock/NN
market/NN
for/IN
lack/NN
of/IN
anything/NN
else/RB
to/TO
sink/VB
our/PRP$
teeth/NNS
into/IN
,/,
''/''
said/VBD
Robert/NNP
White/NNP
,/,
a/DT
vice/NN
president/NN
at/IN
First/JJ
Interstate/NNP
of/IN
California/NNP
./.
Some/DT
analysts/NNS
predict/VBP
that/IN
in/IN
the/DT
absence/NN
of/IN
market-moving/JJ
news/NN
to/TO
push/VB
the/DT
U.S./NNP
unit/NN
sharply/RB
higher/RBR
or/CC
lower/RBR
,/,
the/DT
currency/NN
is/VBZ
likely/JJ
to/TO
drift/VB
below/IN
1.80/CD
marks/NNS
this/DT
week/NN
./.
But/CC
others/NNS
reject/VBP
the/DT
view/NN
,/,
and/CC
forecast/VBP
the/DT
dollar/NN
will/MD
continue/VB
to/TO
hold/VB
its/PRP$
current/JJ
tight/JJ
trading/NN
pattern/NN
./.
They/PRP
argue/VBP
that/DT
weakness/NN
in/IN
both/DT
the/DT
yen/NN
and/CC
sterling/NN
have/VBP
helped/VBN
offset/VB
bearish/JJ
U.S./NNP
economic/JJ
news/NN
and/CC
have/VBP
lent/VBN
support/NN
to/TO
the/DT
dollar/NN
./.
In/IN
late/JJ
New/NNP
York/NNP
trading/NN
yesterday/NN
,/,
the/DT
dollar/NN
was/VBD
quoted/VBN
at/IN
1.8340/CD
marks/NNS
,/,
up/RB
from/IN
1.8300/CD
marks/NNS
late/JJ
Friday/NNP
,/,
and/CC
at/IN
141.90/CD
yen/NN
,/,
up/RB
from/IN
141.65/CD
yen/NN
late/JJ
Friday/NNP
./.
Sterling/NN
was/VBD
quoted/VBN
at/IN
$/$
1.5820/CD
,/,
up/RB
from/IN
$/$
1.5795/CD
late/JJ
Friday/NNP
./.
The/DT
dollar/NN
rose/VBD
against/IN
the/DT
Swiss/JJ
and/CC
French/JJ
francs/NNS
./.
In/IN
Tokyo/NNP
Tuesday/NNP
,/,
the/DT
U.S./NNP
currency/NN
opened/VBD
for/IN
trading/NN
at/IN
142.32/CD
yen/NN
,/,
up/RB
from/IN
Monday/NNP
's/POS
Tokyo/NNP
close/NN
of/IN
142.17/CD
yen/NN
./.
Last/JJ
week/NN
,/,
the/DT
surprise/NN
resignation/NN
of/IN
British/NNP
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
Nigel/NNP
Lawson/NNP
sent/VBD
the/DT
British/JJ
pound/NN
into/IN
a/DT
tailspin/NN
./.
While/IN
sterling/NN
bounced/VBD
back/RB
from/IN
session/NN
lows/NNS
in/IN
a/DT
bout/NN
of/IN
short-covering/NN
yesterday/NN
,/,
foreign/JJ
exchange/NN
dealers/NNS
said/VBD
that/IN
any/DT
hopes/NNS
that/IN
the/DT
pound/NN
would/MD
soon/RB
post/VB
significant/JJ
gains/NNS
have/VBP
evaporated/VBN
./.
Traders/NNS
said/VBD
that/IN
statements/NNS
made/VBN
over/IN
the/DT
weekend/NN
to/TO
quell/VB
concern/NN
about/IN
the/DT
stability/NN
of/IN
Prime/NNP
Minister/NNP
Margaret/NNP
Thatcher/NNP
's/POS
government/NN
and/CC
the/DT
future/NN
of/IN
her/PRP$
economic/JJ
program/NN
largely/RB
failed/VBD
to/TO
reassure/VB
investors/NNS
and/CC
bolster/VB
the/DT
flagging/JJ
British/JJ
unit/NN
./.
In/IN
her/PRP$
first/JJ
televised/VBN
interview/NN
following/VBG
Mr./NNP
Lawson/NNP
's/POS
resignation/NN
,/,
Mrs./NNP
Thatcher/NNP
reiterated/VBD
her/PRP$
desire/NN
to/TO
keep/VB
sterling/NN
strong/JJ
and/CC
warned/VBD
again/RB
that/IN
full/JJ
entry/NN
into/IN
the/DT
European/NNP
Monetary/NNP
System/NNP
's/POS
exchange/NN
rate/NN
mechanism/NN
would/MD
provide/VB
no/DT
easy/JJ
solution/NN
to/TO
Britain/NNP
's/POS
economic/JJ
troubles/NNS
./.
She/PRP
said/VBD
that/IN
the/DT
timing/NN
of/IN
the/DT
United/NNP
Kingdom/NNP
's/POS
entry/NN
would/MD
depend/VB
on/IN
the/DT
speed/NN
with/IN
which/WDT
other/JJ
members/NNS
liberalize/VBP
their/PRP$
economies/NNS
./.
Mrs./NNP
Thatcher/NNP
's/POS
remarks/NNS
were/VBD
seen/VBN
as/IN
a/DT
rebuff/NN
to/TO
several/JJ
leading/VBG
members/NNS
of/IN
her/PRP$
own/JJ
Conservative/NNP
Party/NNP
who/WP
have/VBP
called/VBN
for/IN
a/DT
more/RBR
clear-cut/JJ
British/JJ
commitment/NN
to/TO
the/DT
EMS/NNP
./.
At/IN
the/DT
same/JJ
time/NN
,/,
a/DT
recent/JJ
poll/NN
shows/VBZ
that/IN
Mrs./NNP
Thatcher/NNP
has/VBZ
hit/VBN
the/DT
lowest/JJS
popularity/NN
rating/NN
of/IN
any/DT
British/JJ
leader/NN
since/IN
polling/NN
began/VBD
50/CD
years/NNS
ago/RB
./.
Comments/NNS
by/IN
John/NNP
Major/NNP
,/,
who/WP
has/VBZ
succeeded/VBN
Mr./NNP
Lawson/NNP
,/,
also/RB
failed/VBD
to/TO
damp/VB
market/NN
concern/NN
,/,
despite/IN
his/PRP$
pledge/NN
to/TO
maintain/VB
relatively/RB
high/JJ
British/JJ
interest/NN
rates/NNS
./.
According/VBG
to/TO
one/CD
London-based/JJ
analyst/NN
,/,
even/RB
higher/JJR
interest/NN
rates/NNS
wo/MD
n't/RB
help/VB
the/DT
pound/NN
if/IN
Britain/NNP
's/POS
government/NN
continues/VBZ
to/TO
appear/VB
unstable/JJ
./.
One/CD
U.S./NNP
trader/NN
,/,
however/RB
,/,
dismissed/VBD
sterling/JJ
doomsayers/NNS
while/IN
acknowledging/VBG
there/EX
is/VBZ
little/RB
immediate/JJ
upside/JJ
potential/NN
for/IN
the/DT
U.K./NNP
unit/NN
./.
``/``
There/EX
is/VBZ
no/DT
question/NN
that/IN
the/DT
situation/NN
is/VBZ
bad/JJ
,/,
but/CC
we/PRP
may/MD
be/VB
painting/VBG
a/DT
gloomier/RBR
picture/NN
than/IN
we/PRP
should/MD
,/,
''/''
he/PRP
said/VBD
./.
He/PRP
predicts/VBZ
the/DT
pound/NN
will/MD
continue/VB
to/TO
trade/VB
in/IN
a/DT
very/RB
volatile/JJ
fashion/NN
,/,
with/IN
``/``
fits/NNS
of/IN
being/VBG
oversold/VBN
and/CC
overbought/VBN
''/''
before/IN
recovering/VBG
its/PRP$
losses/NNS
./.
Dealers/NNS
also/RB
note/VBP
that/IN
the/DT
general/JJ
lack/NN
of/IN
enthusiasm/NN
for/IN
the/DT
yen/NN
has/VBZ
helped/VBN
bolster/VB
the/DT
U.S./NNP
dollar/NN
./.
They/PRP
observe/VBP
that/DT
persistent/JJ
Japanese/JJ
investor/NN
demand/NN
for/IN
dollars/NNS
for/IN
both/DT
portfolio/NN
and/CC
direct/JJ
investment/NN
has/VBZ
kept/VBN
a/DT
base/NN
of/IN
support/NN
for/IN
the/DT
dollar/NN
at/IN
around/IN
140/CD
yen/NN
./.
The/DT
dollar/NN
began/VBD
yesterday/NN
on/IN
a/DT
firm/JJ
note/NN
in/IN
Tokyo/NNP
,/,
closing/VBG
higher/RBR
in/IN
late/JJ
trade/NN
./.
In/IN
Europe/NNP
,/,
the/DT
dollar/NN
closed/VBD
slightly/RB
up/RB
in/IN
a/DT
market/NN
dominated/VBN
by/IN
cross/NN
trades/NNS
./.
On/IN
the/DT
Commodity/NNP
Exchange/NNP
in/IN
New/NNP
York/NNP
,/,
gold/NN
for/IN
current/JJ
delivery/NN
settled/VBD
at/IN
$/$
377.80/CD
an/DT
ounce/NN
,/,
down/RB
70/CD
cents/NNS
./.
Estimated/VBN
volume/NN
was/VBD
a/DT
moderate/JJ
3.5/CD
million/CD
ounces/NNS
./.
In/IN
early/RB
trading/NN
in/IN
Hong/NNP
Kong/NNP
Tuesday/NNP
,/,
gold/NN
was/VBD
quoted/VBN
at/IN
$/$
376.80/CD
an/DT
ounce/NN
./.
General/NNP
Electric/NNP
Capital/NNP
Corp./NNP
's/POS
Monogram/NNP
Bank/NNP
USA/NNP
acquired/VBD
a/DT
Visa/NNP
and/CC
MasterCard/NNP
portfolio/NN
from/IN
Commercial/NNP
Federal/NNP
Savings/NNP
&/CC
Loan/NNP
Association/NNP
,/,
an/DT
Omaha/NNP
,/,
Neb./NNP
,/,
unit/NN
of/IN
Commercial/NNP
Federal/NNP
Corp./NNP
of/IN
Omaha/NNP
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
The/DT
portfolio/NN
currently/RB
includes/VBZ
$/$
95/CD
million/CD
in/IN
receivables/NNS
,/,
GE/NNP
Capital/NNP
said/VBD
./.
GE/NNP
Capital/NNP
is/VBZ
a/DT
financial/JJ
services/NNS
subsidiary/NN
of/IN
General/NNP
Electric/NNP
Co./NNP
of/IN
Fairfield/NNP
,/,
Conn./NNP
,/,
which/WDT
also/RB
has/VBZ
broadcasting/NN
and/CC
electrical-products/NNS
businesses/NNS
./.
GE/NNP
Capital/NNP
said/VBD
Commercial/NNP
Federal/NNP
Savings/NNP
will/MD
continue/VB
to/TO
market/VB
Visa/NNP
and/CC
MasterCard/NNP
programs/NNS
while/IN
Monogram/NNP
provides/VBZ
``/``
operational/JJ
and/CC
marketing/NN
support/NN
''/''
and/CC
actually/RB
owns/VBZ
the/DT
accounts/NNS
./.
With/IN
the/DT
acquisition/NN
,/,
Monogram/NNP
,/,
Blue/NNP
Ash/NNP
,/,
Ohio/NNP
,/,
has/VBZ
more/JJR
than/IN
2.4/CD
million/CD
total/JJ
accounts/NNS
,/,
GE/NNP
Capital/NNP
added/VBD
./.
EAST/NNS
GERMANS/NNS
RALLIED/VBD
in/IN
three/CD
cities/NNS
to/TO
demand/VB
democratic/JJ
freedoms/NNS
./.
As/IN
the/DT
country/NN
's/POS
new/JJ
leader/NN
,/,
Egon/NNP
Krenz/NNP
,/,
prepared/VBD
to/TO
travel/VB
to/TO
Moscow/NNP
today/NN
for/IN
talks/NNS
with/IN
Soviet/JJ
leader/NN
Gorbachev/NNP
,/,
hundreds/NNS
of/IN
thousands/NNS
of/IN
East/NNP
Germans/NNP
massed/VBD
in/IN
the/DT
streets/NNS
of/IN
Leipzig/NNP
,/,
Halle/NNP
and/CC
Schwerin/NNP
to/TO
call/VB
for/IN
internal/JJ
freedoms/NNS
and/CC
the/DT
legalization/NN
of/IN
the/DT
New/NNP
Forum/NNP
opposition/NN
group/NN
./.
Krenz/NNP
,/,
however/RB
,/,
vowed/VBD
to/TO
preserve/VB
the/DT
Communist/NNP
Party/NNP
's/POS
hold/NN
on/IN
political/JJ
power/NN
and/CC
said/VBD
East/NNS
Germans/NNS
should/MD
n't/RB
destabilize/VB
the/DT
nation/NN
with/IN
unrealistic/JJ
demands/NNS
./.
Communist/JJ
officials/NNS
this/DT
month/NN
have/VBP
faced/VBN
nearly/RB
daily/JJ
pro-democracy/JJ
protests/NNS
,/,
accompanied/VBN
by/IN
the/DT
flight/NN
to/TO
the/DT
West/NNP
by/IN
thousands/NNS
of/IN
East/NNS
Germans/NNS
./.
Soviet/JJ
police/NNS
clashed/VBD
with/IN
demonstrators/NNS
in/IN
Moscow/NNP
following/VBG
a/DT
candlelight/NN
vigil/NN
around/IN
the/DT
KGB/NNP
's/POS
Lubyanka/NNP
headquarters/NN
in/IN
memory/NN
of/IN
those/DT
persecuted/VBN
under/IN
Stalin/NNP
./.
More/RBR
than/IN
1,000/CD
Muscovites/NNS
attended/VBD
the/DT
service/NN
./.
A/DT
splinter/NN
group/NN
demonstrated/VBD
in/IN
Pushkin/NNP
Square/NNP
,/,
where/WRB
the/DT
police/NN
clubbed/VBD
and/CC
detained/VBD
a/DT
number/NN
of/IN
protesters/NNS
./.
Police/NNP
in/IN
Yugoslavia/NNP
dispersed/VBD
about/RB
1,000/CD
ethnic/JJ
Albanians/NNS
who/WP
were/VBD
protesting/VBG
the/DT
trial/NN
of/IN
the/DT
former/JJ
Communist/NNP
Party/NNP
chief/NN
of/IN
the/DT
southern/JJ
province/NN
of/IN
Kosovo/NNP
./.
Azem/NNP
Vlasi/NNP
and/CC
14/CD
others/NNS
are/VBP
accused/VBN
of/IN
inciting/VBG
riots/NNS
and/CC
strikes/NNS
and/CC
opposing/VBG
constitutional/JJ
limits/NNS
to/TO
Kosovo/NNP
's/POS
autonomy/NN
./.
If/IN
convicted/VBN
,/,
they/PRP
could/MD
be/VB
sentenced/VBN
to/TO
death/NN
./.
A/DT
court/NN
in/IN
Jerusalem/NNP
sentenced/VBD
a/DT
Palestinian/NN
to/TO
16/CD
life/NN
terms/NNS
for/IN
forcing/VBG
a/DT
bus/NN
off/IN
a/DT
cliff/NN
July/NNP
6/CD
,/,
killing/VBG
16/CD
people/NNS
,/,
Israeli/JJ
radio/NN
reported/VBD
./.
He/PRP
also/RB
received/VBD
20-year/JJ
sentences/NNS
for/IN
each/DT
of/IN
the/DT
24/CD
passengers/NNS
injured/VBN
./.
It/PRP
was/VBD
considered/VBN
the/DT
stiffest/JJS
sentence/NN
passed/VBD
since/IN
the/DT
start/NN
of/IN
the/DT
22-month-old/JJ
Arab/NNP
uprising/NN
in/IN
the/DT
Israeli-occupied/JJ
territories/NNS
./.
U.S./NNP
and/CC
Soviet/JJ
negotiators/NNS
opened/VBD
talks/NNS
in/IN
New/NNP
York/NNP
aimed/VBD
at/IN
resolving/VBG
differences/NNS
in/IN
proposals/NNS
to/TO
reduce/VB
chemical-weapons/NNS
arsenals/NNS
./.
While/IN
the/DT
Kremlin/NNP
has/VBZ
urged/VBN
a/DT
ban/NN
on/IN
output/NN
of/IN
the/DT
poison/NN
gases/NNS
,/,
the/DT
White/NNP
House/NNP
wants/VBZ
to/TO
continue/VB
producing/VBG
the/DT
weapons/NNS
even/RB
after/IN
an/DT
international/JJ
treaty/NN
calling/VBG
for/IN
their/PRP$
destruction/NN
is/VBZ
signed/VBN
./.
South/NNP
Africa/NNP
's/POS
government/NN
said/VBD
peaceful/JJ
demonstrations/NNS
such/JJ
as/IN
the/DT
anti-apartheid/JJ
rally/NN
Sunday/NNP
near/IN
Soweto/NNP
have/VBP
helped/VBN
ease/VB
tensions/NNS
and/CC
assisted/VBN
political/JJ
changes/NNS
./.
About/RB
70,000/CD
people/NNS
attended/VBD
the/DT
anti-government/JJ
rally/NN
,/,
at/IN
which/WDT
leaders/NNS
of/IN
the/DT
banned/VBN
African/NNP
National/NNP
Congress/NNP
refused/VBD
to/TO
renounce/VB
violence/NN
to/TO
end/VB
apartheid/NN
./.
Secretary/NNP
of/IN
State/NNP
Baker/NNP
expressed/VBD
concern/NN
that/IN
Nicaraguan/NNP
President/NNP
Ortega/NNP
may/MD
attempt/VB
to/TO
use/VB
alleged/JJ
attacks/NNS
by/IN
the/DT
U.S.backed/JJ
Contra/NNP
rebels/NNS
as/IN
an/DT
excuse/NN
to/TO
scuttle/VB
elections/NNS
scheduled/VBN
for/IN
February/NNP
./.
Ortega/NNP
had/VBD
threatened/VBN
to/TO
end/VB
a/DT
19-month-old/JJ
ceasefire/NN
./.
Baker/NNP
's/POS
remarks/NNS
came/VBD
as/IN
the/DT
White/NNP
House/NNP
urged/VBD
both/DT
sides/NNS
to/TO
honor/VB
the/DT
truce/NN
./.
The/DT
USS/NNP
Lexington/NNP
returned/VBD
to/TO
dock/NN
in/IN
Pensacola/NNP
,/,
Fla./NNP
,/,
following/VBG
an/DT
accident/NN
Sunday/NNP
in/IN
which/WDT
the/DT
pilot/NN
of/IN
a/DT
training/NN
jet/NN
crashed/VBD
into/IN
the/DT
ship/NN
,/,
killing/VBG
five/CD
sailors/NNS
./.
The/DT
captain/NN
of/IN
the/DT
aircraft/NN
carrier/NN
,/,
the/DT
oldest/JJS
in/IN
the/DT
Navy/NNP
,/,
said/VBD
the/DT
flier/NN
was/VBD
making/VBG
his/PRP$
first/JJ
attempt/NN
to/TO
land/NN
on/IN
a/DT
carrier/NN
./.
Four/CD
people/NNS
torched/VBD
three/CD
U.S./NNP
flags/NNS
on/IN
the/DT
central/JJ
steps/NNS
of/IN
the/DT
U.S./NNP
Capitol/NNP
in/IN
a/DT
bid/NN
to/TO
test/VB
a/DT
new/JJ
federal/JJ
law/NN
protecting/VBG
the/DT
American/JJ
flag/NN
from/IN
desecration/NN
./.
All/DT
four/CD
demonstrators/NNS
were/VBD
arrested/VBN
./.
The/DT
law/NN
,/,
which/WDT
Bush/NNP
allowed/VBD
to/TO
take/VB
effect/NN
without/IN
his/PRP$
signature/NN
,/,
went/VBD
into/IN
force/NN
Friday/NNP
./.
Chinese/JJ
officials/NNS
said/VBD
armed/JJ
police/NNS
would/MD
replace/VB
soldiers/NNS
in/IN
Tiananmen/NNP
Square/NNP
as/IN
part/NN
of/IN
a/DT
scaling/VBG
down/RP
of/IN
Beijing/NNP
's/POS
five-month-old/JJ
state/NN
of/IN
emergency/NN
./.
Separately/RB
,/,
the/DT
U.S./NNP
Embassy/NNP
has/VBZ
filed/VBN
three/CD
protests/NNS
in/IN
as/RB
many/JJ
days/NNS
with/IN
China/NNP
's/POS
government/NN
,/,
alleging/VBG
harassment/NN
of/IN
diplomats/NNS
and/CC
their/PRP$
families/NNS
,/,
an/DT
embassy/NN
source/NN
said/VBD
./.
Authorities/NNP
in/IN
Algeria/NNP
said/VBD
the/DT
toll/NN
from/IN
two/CD
earthquakes/NNS
Sunday/NNP
had/VBD
reached/VBN
at/IN
least/JJS
30/CD
dead/JJ
and/CC
about/RB
250/CD
injured/JJ
./.
The/DT
heaviest/JJS
damage/NN
was/VBD
reported/VBN
in/IN
Tipasa/NNP
,/,
about/RB
40/CD
miles/NNS
west/RB
of/IN
Algiers/NNP
./.
As/IN
rescue/NN
teams/NNS
continued/VBD
searching/VBG
for/IN
victims/NNS
,/,
hundreds/NNS
of/IN
suvivors/NNS
accused/VBD
the/DT
government/NN
of/IN
a/DT
feeble/JJ
response/NN
following/VBG
the/DT
temblors/NNS
./.
Britain/NNP
's/POS
Thatcher/NNP
summoned/VBD
senior/JJ
advisers/NNS
for/IN
strategy/NN
talks/NNS
as/IN
opinion/NN
polls/NNS
showed/VBD
the/DT
prime/JJ
minister/NN
's/POS
popularity/NN
had/VBD
hit/VBN
a/DT
record/NN
low/NN
following/VBG
the/DT
resignation/NN
last/JJ
Thursday/NNP
of/IN
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
Lawson/NNP
./.
One/CD
poll/NN
,/,
conducted/VBN
for/IN
the/DT
British/JJ
Broadcasting/NNP
Corp./NNP
,/,
found/VBD
that/IN
52/CD
%/NN
of/IN
voters/NNS
believed/VBD
that/IN
she/PRP
should/MD
quit/VB
./.
Lawmakers/NNS
in/IN
Hungary/NNP
approved/VBD
legislation/NN
granting/VBG
amnesty/NN
to/TO
many/JJ
people/NNS
convicted/VBN
of/IN
crimes/NNS
punishable/JJ
by/IN
less/JJR
than/IN
three/CD
years/NNS
in/IN
prison/NN
./.
They/PRP
also/RB
established/VBD
an/DT
office/NN
to/TO
control/VB
government/NN
and/CC
party/NN
finances/NNS
./.
The/DT
laws/NNS
take/VBP
effect/NN
next/JJ
month/NN
./.
Died/VBN
:/:
Robert/NNP
V./NNP
Van/NNP
Fossan/NNP
,/,
63/CD
,/,
chairman/NN
of/IN
Mutual/NNP
Benefit/NNP
Life/NNP
Insurance/NNP
Co./NNP
,/,
Sunday/NNP
,/,
in/IN
Morristown/NNP
,/,
N.J./NNP
,/,
of/IN
cancer/NN
./.
Fluor/NNP
Corp./NNP
said/VBD
it/PRP
was/VBD
awarded/VBN
a/DT
$/$
300/CD
million/CD
contract/NN
to/TO
provide/VB
engineering/NN
and/CC
construction-management/JJ
services/NNS
at/IN
a/DT
copper/NN
mine/NN
in/IN
Irian/NNP
Jaya/NNP
,/,
Indonesia/NNP
,/,
for/IN
a/DT
unit/NN
of/IN
Freeport-McMoRan/NNP
Copper/NNP
Co/NNP
./.
Fluor/NNP
,/,
based/VBN
in/IN
Irvine/NNP
,/,
Calif./NNP
,/,
will/MD
direct/VB
expansion/NN
of/IN
the/DT
mine/NN
's/POS
capacity/NN
to/TO
52,000/CD
metric/JJ
tons/NNS
a/DT
day/NN
from/IN
32,000/CD
metric/JJ
tons/NNS
a/DT
day/NN
./.
Completion/NN
of/IN
the/DT
project/NN
is/VBZ
expected/VBN
by/IN
mid-1992/NN
./.
In/IN
1988/CD
,/,
Fluor/NNP
had/VBD
revenue/NN
of/IN
$/$
5.1/CD
billion/CD
and/CC
earnings/NNS
of/IN
$/$
56.4/CD
million/CD
,/,
or/CC
71/CD
cents/NNS
a/DT
share/NN
./.
Nixdorf/NNP
Computer/NNP
AG/NNP
,/,
citing/VBG
continued/VBN
profitability/NN
problems/NNS
,/,
said/VBD
it/PRP
will/MD
have/VB
to/TO
reduce/VB
personnel/NNS
further/RBR
,/,
notably/RB
in/IN
research/NN
and/CC
development/NN
sectors/NNS
./.
The/DT
troubled/JJ
West/NNP
German/NNP
computer/NN
company/NN
said/VBD
,/,
in/IN
a/DT
statement/NN
to/TO
its/PRP$
employees/NNS
,/,
that/IN
the/DT
number/NN
of/IN
persons/NNS
working/VBG
in/IN
product/NN
development/NN
will/MD
be/VB
reduced/VBN
world-wide/JJ
to/TO
2,440/CD
from/IN
2,888/CD
by/IN
the/DT
end/NN
of/IN
1990/CD
./.
The/DT
number/NN
of/IN
workers/NNS
in/IN
production/NN
sectors/NNS
will/MD
be/VB
cut/VBN
by/IN
488/CD
,/,
to/TO
5,200/CD
by/IN
September/NNP
./.
The/DT
cuts/NNS
will/MD
be/VB
made/VBN
half/NN
within/IN
Germany/NNP
and/CC
half/NN
abroad/RB
./.
In/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
1989/CD
,/,
Nixdorf/NNP
said/VBD
,/,
sales/NNS
rose/VBD
5/CD
%/NN
amid/IN
good/JJ
growth/NN
in/IN
selected/VBN
areas/NNS
such/JJ
as/IN
banks/NNS
and/CC
trading/NN
companies/NNS
./.
The/DT
company/NN
also/RB
cited/VBD
some/DT
success/NN
in/IN
damping/VBG
cost/NN
increases/NNS
and/CC
said/VBD
it/PRP
wants/VBZ
to/TO
return/VB
to/TO
profitability/NN
in/IN
1990/CD
./.
It/PRP
cited/VBD
the/DT
expected/VBN
beneficial/JJ
effects/NNS
of/IN
a/DT
concentration/NN
on/IN
key/JJ
products/NNS
,/,
further/JJ
structural/JJ
changes/NNS
within/IN
the/DT
group/NN
and/CC
cooperation/NN
agreements/NNS
with/IN
other/JJ
companies/NNS
./.
GREAT/JJ
NORTHERN/NNP
NEKOOSA/NNP
is/VBZ
being/VBG
sought/VBN
by/IN
another/DT
big/JJ
paper/NN
company/NN
,/,
Georgia-Pacific/NNP
,/,
for/IN
$/$
58/CD
a/DT
share/NN
,/,
or/CC
about/RB
$/$
3.18/CD
billion/CD
./.
The/DT
tender/NN
offer/NN
,/,
which/WDT
surprised/VBD
analysts/NNS
because/IN
it/PRP
appeared/VBD
to/TO
be/VB
unsolicited/JJ
,/,
could/MD
spark/VB
a/DT
period/NN
of/IN
industry/NN
consolidation/NN
./.
Analysts/NNS
questioned/VBD
whether/IN
Georgia-Pacific/NNP
will/MD
ultimately/RB
prevail/VB
,/,
saying/VBG
other/JJ
paper/NN
concerns/NNS
may/MD
make/VB
competing/VBG
bids/NNS
./.
Two/CD
more/JJR
securities/NNS
firms/NNS
bowed/VBD
to/TO
the/DT
outcry/NN
over/IN
program/NN
trading/NN
./.
GE/NNP
's/POS
Kidder/NNP
Peabody/NNP
unit/NN
said/VBD
it/PRP
would/MD
stop/VB
doing/VBG
stock-index/JJ
arbitrage/NN
for/IN
its/PRP$
own/JJ
account/NN
,/,
while/IN
Merrill/NNP
Lynch/NNP
said/VBD
it/PRP
was/VBD
halting/VBG
such/JJ
trading/NN
entirely/RB
./.
Also/RB
,/,
the/DT
Big/NNP
Board/NNP
met/VBD
with/IN
angry/JJ
stock/NN
specialists/NNS
./.
A/DT
big/JJ
pension-insurance/JJ
case/NN
will/MD
be/VB
reviewed/VBN
by/IN
the/DT
Supreme/NNP
Court/NNP
./.
The/DT
justices/NNS
agreed/VBD
to/TO
decide/VB
whether/IN
federal/JJ
insurers/NNS
can/MD
require/VB
LTV/NNP
to/TO
take/VB
back/RP
responsiblilty/NN
for/IN
funding/VBG
its/PRP$
$/$
2.3/CD
billion/CD
pension/NN
shortfall/NN
./.
Drug/NN
companies/NNS
lost/VBD
a/DT
major/JJ
liability/NN
case/NN
./.
The/DT
Supreme/NNP
Court/NNP
let/VBP
stand/VB
a/DT
New/NNP
York/NNP
ruling/NN
that/IN
all/DT
manufacturers/NNS
of/IN
an/DT
anti-miscarriage/JJ
drug/NN
are/VBP
liable/JJ
for/IN
injuries/NNS
or/CC
deaths/NNS
if/IN
the/DT
actual/JJ
maker/NN
is/VBZ
n't/RB
known/VBN
./.
Revco/NNP
received/VBD
a/DT
$/$
925/CD
million/CD
takeover/NN
offer/NN
from/IN
Texas/NNP
financier/NN
Robert/NNP
Bass/NNP
and/CC
Acadia/NNP
Partners/NNP
./.
The/DT
drugstore/NN
chain/NN
reacted/VBD
cautiously/RB
,/,
saying/VBG
the/DT
plan/NN
would/MD
further/RB
swell/VB
its/PRP$
huge/JJ
debt/NN
,/,
which/WDT
forced/VBD
the/DT
company/NN
into/IN
Chapter/NNP
11/CD
protection/NN
last/JJ
year/NN
./.
Rockefeller/NNP
Group/NNP
agreed/VBD
to/TO
sell/VB
a/DT
51/CD
%/NN
interest/NN
to/TO
Mitsubishi/NNP
Estate/NNP
,/,
a/DT
major/JJ
Japanese/JJ
developer/NN
and/CC
property/NN
owner/NN
,/,
for/IN
$/$
846/CD
million/CD
./.
Officials/NNS
at/IN
some/DT
Rockefeller/NNP
units/NNS
are/VBP
said/VBD
to/TO
be/VB
unhappy/JJ
with/IN
the/DT
agreement/NN
./.
Continental/NNP
Air/NNP
replaced/VBD
its/PRP$
top/JJ
executive/NN
for/IN
the/DT
sixth/JJ
time/NN
in/IN
as/RB
many/JJ
years/NNS
./.
Chairman/NNP
and/CC
Chief/NNP
Executive/NNP
Joseph/NNP
Corr/NNP
was/VBD
succeeded/VBN
by/IN
Frank/NNP
Lorenzo/NNP
,/,
chief/NN
of/IN
parent/NN
Texas/NNP
Air/NNP
./.
United/NNP
Air/NNP
's/POS
parent/NN
may/MD
have/VB
to/TO
pay/VB
as/RB
much/JJ
as/IN
$/$
53.7/CD
million/CD
to/TO
the/DT
labor-management/JJ
buy-out/NN
group/NN
for/IN
fees/NNS
and/CC
expenses/NNS
incurred/VBN
in/IN
their/PRP$
failed/JJ
$/$
6.79/CD
billion/CD
takeover/NN
bid/NN
./.
Gen-Probe/NNP
agreed/VBD
to/TO
be/VB
bought/VBN
by/IN
Chugai/NNP
Pharmaceutical/NNP
for/IN
about/RB
$/$
110/CD
million/CD
./.
The/DT
sale/NN
is/VBZ
likely/JJ
to/TO
fuel/VB
concern/NN
about/IN
growing/VBG
Japanese/JJ
investment/NN
in/IN
U.S./NNP
biotechnology/NN
firms/NNS
./.
Boeing/NNP
posted/VBD
a/DT
68/CD
%/NN
jump/NN
in/IN
third-quarter/JJ
earnings/NNS
,/,
but/CC
Wall/NNP
Street/NNP
's/POS
attention/NN
was/VBD
focused/VBN
on/IN
the/DT
continued/VBN
strike/NN
at/IN
the/DT
aircraft/NN
maker/NN
./.
The/DT
Fed/NNP
delayed/VBD
approval/NN
of/IN
First/NNP
Union/NNP
's/POS
$/$
849/CD
million/CD
acquisition/NN
of/IN
Florida/NNP
National/NNP
Banks/NNP
pending/VBG
a/DT
review/NN
of/IN
First/NNP
Union/NNP
's/POS
lending/NN
practices/NNS
in/IN
low-income/JJ
neighborhoods/NNS
./.
Allianz/NNP
of/IN
West/NNP
Germany/NNP
entered/VBD
the/DT
takeover/NN
battle/NN
between/IN
France/NNP
's/POS
Paribas/NNP
and/CC
Navigation/NNP
Mixte/NNP
./.
Maxwell/NNP
agreed/VBD
to/TO
sell/VB
its/PRP$
U.S./NNP
printing/NN
unit/NN
to/TO
Quebecor/NNP
for/IN
$/$
500/CD
million/CD
,/,
making/VBG
Quebecor/NNP
the/DT
No./NN
2/CD
commercial/JJ
printer/NN
in/IN
North/NNP
America/NNP
./.
New/JJ
construction/NN
contracts/NNS
rose/VBD
8/CD
%/NN
in/IN
September/NNP
,/,
led/VBN
by/IN
commercial/JJ
,/,
industrial/JJ
and/CC
public-works/JJ
projects/NNS
,/,
according/VBG
to/TO
F.W./NNP
Dodge/NNP
Group/NNP
./.
Western/NNP
Union/NNP
took/VBD
steps/NNS
to/TO
withdraw/VB
a/DT
$/$
500/CD
million/CD
debt/NN
swap/NN
,/,
citing/VBG
turmoil/NN
in/IN
the/DT
junk/NN
bond/NN
market/NN
./.
Markets/NNS
--/:
Stocks/NNS
:/:
Volume/NN
126,630,000/CD
shares/NNS
./.
Dow/NNP
Jones/NNP
industrials/NNS
2603.48/CD
,/,
up/RB
6.76/CD
;/:
transportation/NN
1191.86/CD
,/,
up/RB
1.43/CD
;/:
utilities/NNS
216.74/CD
,/,
up/RB
0.88/CD
./.
Bonds/NNS
:/:
Shearson/NNP
Lehman/NNP
Hutton/NNP
Treasury/NNP
index/NN
3416.81/CD
,/,
up/RB
Commodities/NNS
:/:
Dow/NNP
Jones/NNP
futures/NNS
index/NN
129.38/CD
,/,
off/RB
0.11/CD
;/:
spot/NN
index/NN
130.09/CD
,/,
off/RB
0.71/CD
./.
Dollar/NN
:/:
141.90/CD
yen/NN
,/,
up/RB
0.25/CD
;/:
1.8340/CD
marks/NNS
,/,
up/RB
0.0040/CD
./.
Pacific/NNP
Telesis/NNP
Group/NNP
said/VBD
its/PRP$
Pacific/NNP
Bell/NNP
unit/NN
sustained/VBD
property/NN
damage/NN
of/IN
about/RB
$/$
45/CD
million/CD
to/TO
$/$
50/CD
million/CD
from/IN
the/DT
California/NNP
earthquake/NN
earlier/RBR
this/DT
month/NN
./.
The/DT
San/NNP
Francisco-based/JJ
telecommunications/NNS
company/NN
said/VBD
it/PRP
carries/VBZ
$/$
150/CD
million/CD
of/IN
earthquake/NN
insurance/NN
with/IN
a/DT
$/$
10/CD
million/CD
deductible/JJ
provision/NN
./.
Sam/NNP
Ginn/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
,/,
told/VBD
securities/NNS
analysts/NNS
in/IN
New/NNP
York/NNP
that/IN
the/DT
company/NN
expects/VBZ
somewhat/RB
slower/JJR
per-share/JJ
earnings/NNS
growth/NN
in/IN
1990/CD
,/,
although/IN
annual/JJ
growth/NN
should/MD
return/VB
to/TO
the/DT
traditional/JJ
figure/NN
of/IN
about/RB
7/CD
%/NN
thereafter/RB
./.
As/IN
factors/NNS
contributing/VBG
to/TO
the/DT
temporary/JJ
slowdown/NN
,/,
he/PRP
cited/VBD
one-time/JJ
rate/NN
reductions/NNS
prescribed/VBN
by/IN
California/NNP
regulators/NNS
as/IN
a/DT
prelude/NN
to/TO
a/DT
new/JJ
framework/NN
that/WDT
removes/VBZ
profit/NN
constraints/NNS
./.
He/PRP
also/RB
mentioned/VBD
increased/VBN
capital/NN
investment/NN
by/IN
Pacific/NNP
Bell/NNP
for/IN
network/NN
improvements/NNS
./.
Mr./NNP
Ginn/NNP
said/VBD
the/DT
company/NN
's/POS
cellular/JJ
operations/NNS
now/RB
serve/VBP
about/RB
341,000/CD
customers/NNS
,/,
up/RB
46/CD
%/NN
from/IN
a/DT
year/NN
ago/RB
./.
General/NNP
Motors/NNP
Corp./NNP
is/VBZ
planning/VBG
to/TO
build/VB
a/DT
new/JJ
engine/NN
plant/NN
in/IN
Europe/NNP
that/WDT
may/MD
be/VB
built/VBN
in/IN
Britain/NNP
,/,
provided/VBN
the/DT
company/NN
can/MD
reach/VB
a/DT
satisfactory/JJ
agreement/NN
with/IN
unions/NNS
,/,
sources/NNS
said/VBD
./.
Officials/NNP
of/IN
Vauxhall/NNP
Motors/NNP
Ltd./NNP
,/,
GM/NNP
's/POS
British/JJ
unit/NN
,/,
were/VBD
meeting/VBG
with/IN
union/NN
leaders/NNS
late/JJ
yesterday/NN
in/IN
hopes/NNS
of/IN
winning/VBG
such/JJ
an/DT
accord/NN
./.
The/DT
engine/NN
plant/NN
may/MD
encompass/VB
plans/NNS
for/IN
a/DT
joint/JJ
components/NNS
venture/NN
with/IN
Jaguar/NNP
./.
Alternatively/RB
,/,
a/DT
separate/JJ
engine/NN
plant/NN
may/MD
be/VB
built/VBN
as/IN
part/NN
of/IN
GM/NNP
's/POS
planned/VBN
tie-up/NN
with/IN
the/DT
British/JJ
luxury/NN
car/NN
maker/NN
,/,
the/DT
sources/NNS
said/VBD
./.
Sources/NNS
said/VBD
a/DT
``/``
complex/JJ
and/CC
detailed/VBN
''/''
announcement/NN
of/IN
a/DT
joint/JJ
agreement/NN
between/IN
General/NNP
Motors/NNP
and/CC
Jaguar/NNP
would/MD
be/VB
made/VBN
by/IN
Jaguar/NNP
``/``
some/DT
time/NN
in/IN
the/DT
next/JJ
2/CD
1\/2/CD
weeks/NNS
./.
''/''
Cray/NNP
Research/NNP
Inc./NNP
won/VBD
government/NN
clearance/NN
for/IN
its/PRP$
proposed/VBN
reorganization/NN
of/IN
founder/NN
Seymour/NNP
Cray/NNP
's/POS
supercomputer/NN
design/NN
team/NN
into/IN
a/DT
separate/JJ
company/NN
./.
Internal/NNP
Revenue/NNP
Service/NNP
approval/NN
of/IN
the/DT
move/NN
as/IN
a/DT
tax-free/JJ
transaction/NN
was/VBD
the/DT
last/JJ
hurdle/NN
to/TO
splitting/NN
up/IN
the/DT
world/NN
's/POS
dominant/JJ
maker/NN
of/IN
supercomputers/NNS
,/,
which/WDT
Mr./NNP
Cray/NNP
founded/VBD
in/IN
1974/CD
./.
Cray/NNP
's/POS
directors/NNS
set/VBD
Nov./NNP
15/CD
as/IN
the/DT
record/NN
date/NN
for/IN
distribution/NN
of/IN
shares/NNS
in/IN
the/DT
new/JJ
company/NN
,/,
to/TO
be/VB
called/VBN
Cray/NNP
Computer/NNP
Corp/NNP
./.
It/PRP
will/MD
trade/VB
over/IN
the/DT
counter/NN
under/IN
the/DT
symbol/NN
CRAY/NNP
./.
The/DT
plan/NN
calls/VBZ
for/IN
Cray/NNP
Research/NNP
holders/NNS
to/TO
receive/VB
one/CD
share/NN
in/IN
the/DT
new/JJ
company/NN
for/IN
every/DT
two/CD
shares/NNS
held/VBD
./.
An/DT
estimated/VBN
14.7/CD
million/CD
Cray/NNP
Computer/NNP
shares/NNS
will/MD
be/VB
distributed/VBN
,/,
Cray/NNP
Research/NNP
said/VBD
./.
Under/IN
the/DT
accord/NN
,/,
Cray/NNP
Research/NNP
will/MD
transfer/VB
to/TO
Mr./NNP
Cray/NNP
's/POS
fledgling/NN
operation/NN
$/$
53.3/CD
million/CD
of/IN
assets/NNS
primarily/RB
related/VBN
to/TO
the/DT
Cray-3/NNP
development/NN
project/NN
his/PRP$
team/NN
is/VBZ
undertaking/VBG
and/CC
will/MD
lend/VB
Cray/NNP
Computer/NNP
$/$
98.6/CD
million/CD
./.
Cray/NNP
Research/NNP
will/MD
retain/VB
a/DT
10/CD
%/NN
interest/NN
in/IN
the/DT
new/JJ
company/NN
,/,
which/WDT
will/MD
be/VB
based/VBN
in/IN
Colorado/NNP
Springs/NNP
,/,
Colo/NNP
./.
When/WRB
it/PRP
announced/VBD
the/DT
planned/VBN
breakup/NN
in/IN
May/NNP
,/,
Cray/NNP
Research/NNP
said/VBD
development/NN
costs/NNS
of/IN
several/JJ
competing/VBG
projects/NNS
were/VBD
squeezing/VBG
its/PRP$
earnings/NNS
growth/NN
./.
After/IN
the/DT
split/NN
,/,
the/DT
two/CD
companies/NNS
presumably/RB
will/MD
be/VB
rivals/NNS
for/IN
orders/NNS
from/IN
government/NN
and/CC
commercial/JJ
customers/NNS
./.
Interface/NNP
Systems/NNP
Inc./NNP
,/,
Ann/NNP
Arbor/NNP
,/,
Mich./NNP
,/,
said/VBD
it/PRP
will/MD
report/VB
net/JJ
income/NN
for/IN
the/DT
fourth/JJ
quarter/NN
ended/VBD
Sept./NNP
30/CD
fell/VBD
to/TO
$/$
470,000/CD
,/,
or/CC
11/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
805,000/CD
,/,
or/CC
19/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Chairman/NNP
Carl/NNP
L./NNP
Bixby/NNP
said/VBD
the/DT
decline/NN
occurred/VBD
although/IN
revenue/NN
rose/VBD
30/CD
%/NN
to/TO
more/JJR
than/IN
$/$
8.3/CD
million/CD
from/IN
$/$
6.4/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
The/DT
company/NN
,/,
which/WDT
makes/VBZ
computer/NN
parts/NNS
said/VBD
fiscal/JJ
1989/CD
earnings/NNS
were/VBD
``/``
down/RB
slightly/RB
''/''
from/IN
$/$
3.2/CD
million/CD
,/,
or/CC
74/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
fiscal/JJ
l988/CD
./.
The/DT
company/NN
said/VBD
fiscal/JJ
1989/CD
revenue/NN
increased/VBD
about/RB
30/CD
%/NN
to/TO
more/JJR
than/IN
$/$
32/CD
million/CD
from/IN
$/$
25.3/CD
million/CD
./.
Mr./NNP
Bixby/NNP
said/VBD
that/IN
early/JJ
signs/NNS
point/NN
to/TO
improved/VBN
earnings/NNS
and/CC
revenue/NN
in/IN
the/DT
first/JJ
quarter/NN
of/IN
fiscal/JJ
1990/CD
./.
``/``
The/DT
current/JJ
backlog/NN
of/IN
orders/NNS
is/VBZ
strong/JJ
throughout/IN
the/DT
corporation/NN
,/,
''/''
he/PRP
said/VBD
./.
Priam/NNP
Corp./NNP
said/VBD
it/PRP
filed/VBD
for/IN
protection/NN
under/IN
Chapter/NNP
11/CD
of/IN
the/DT
federal/JJ
Bankruptcy/NNP
Code/NNP
and/CC
announced/VBD
a/DT
35/CD
%/NN
reduction/NN
in/IN
its/PRP$
world-wide/JJ
employment/NN
./.
The/DT
filing/NN
in/IN
bankruptcy/NN
court/NN
here/RB
follows/VBZ
a/DT
string/NN
of/IN
quarterly/JJ
losses/NNS
and/CC
product/NN
glitches/NNS
for/IN
the/DT
maker/NN
of/IN
harddisk/NN
drives/NNS
for/IN
minicomputers/NNS
and/CC
microcomputers/NNS
./.
a/DT
loss/NN
of/IN
$/$
25.4/CD
million/CD
for/IN
the/DT
fiscal/JJ
year/NN
ended/VBN
July/NNP
7/CD
,/,
compared/VBN
with/IN
year-earlier/JJ
profit/NN
of/IN
$/$
543,000/CD
,/,
or/CC
two/CD
cents/NNS
a/DT
share/NN
./.
Revenue/NN
for/IN
the/DT
year/NN
fell/VBD
13/CD
%/NN
to/TO
$/$
122.7/CD
million/CD
./.
The/DT
200-person/JJ
staff/NN
cutback/NN
announced/VBD
yesterday/NN
will/MD
bring/VB
Priam/NNP
's/POS
employment/NN
to/TO
about/RB
380/CD
workers/NNS
,/,
less/JJR
than/IN
half/NN
of/IN
what/WP
it/PRP
was/VBD
before/IN
a/DT
similar/JJ
,/,
230-person/JJ
reduction/NN
in/IN
August/NNP
./.
The/DT
company/NN
yesterday/NN
also/RB
said/VBD
it/PRP
was/VBD
scrapping/VBG
one/CD
of/IN
its/PRP$
major/JJ
new/JJ
products/NNS
,/,
a/DT
760-megabyte/JJ
drive/NN
,/,
which/WDT
,/,
while/IN
technically/RB
proficient/JJ
,/,
did/VBD
n't/RB
hold/VB
much/JJ
promise/NN
of/IN
generating/VBG
substantial/JJ
orders/NNS
because/IN
financing/NN
problems/NNS
caused/VBD
a/DT
nine-month/JJ
delay/NN
in/IN
getting/VBG
the/DT
product/NN
to/TO
market/NN
./.
The/DT
French/JJ
Economics/NNP
Ministry/NNP
approved/VBD
a/DT
planned/VBN
asset/NN
swap/NN
between/IN
the/DT
defense/NN
and/CC
electronics/NNS
group/NN
Thomson-CSF/NNP
S.A./NNP
and/CC
the/DT
bank/NN
group/NN
Credit/NNP
Lyonnais/NNP
./.
The/DT
ministry/NN
said/VBD
the/DT
swap/NN
,/,
details/NNS
of/IN
which/WDT
were/VBD
disclosed/VBN
last/JJ
Thursday/NNP
,/,
will/MD
allow/VB
both/DT
state-controlled/JJ
companies/NNS
to/TO
reinforce/VB
operations/NNS
in/IN
their/PRP$
main/JJ
markets/NNS
and/CC
argued/VBD
that/IN
the/DT
move/NN
shows/VBZ
the/DT
dynamism/NN
of/IN
France/NNP
's/POS
state-sector/JJ
concerns/NNS
./.
The/DT
approval/NN
also/RB
ends/VBZ
any/DT
hope/NN
that/IN
Banque/NNP
Nationale/NNP
de/IN
Paris/NNP
,/,
another/DT
state-sector/JJ
bank/NN
,/,
might/MD
have/VB
had/VBN
about/IN
taking/VBG
Credit/NNP
Lyonnais/NNP
's/POS
place/NN
in/IN
the/DT
accord/NN
./.
It/PRP
hinted/VBD
over/IN
the/DT
weekend/NN
that/IN
it/PRP
would/MD
have/VB
been/VBN
interested/JJ
in/IN
a/DT
hook-up/NN
with/IN
Thomson-CSF/NNP
./.
Under/IN
details/NNS
of/IN
the/DT
accord/NN
,/,
Credit/NNP
Lyonnais/NNP
will/MD
take/VB
slightly/RB
more/JJR
than/IN
50/CD
%/NN
of/IN
Thomson-CSF/NNP
Finance/NNP
in/IN
exchange/NN
for/IN
about/RB
14/CD
%/NN
of/IN
its/PRP$
own/JJ
shares/NNS
./.
The/DT
move/NN
will/MD
help/VB
the/DT
bank/NN
to/TO
keep/VB
up/RP
with/IN
international/JJ
solvency/NN
ratios/NNS
being/VBG
phased/VBD
in/RP
by/IN
the/DT
Bank/NNP
for/IN
International/NNP
Settlements/NNP
and/CC
will/MD
also/RB
represent/VB
the/DT
first/JJ
time/NN
that/IN
its/PRP$
voting/NN
shares/NNS
have/VBP
been/VBN
held/VBN
by/IN
a/DT
party/NN
other/JJ
than/IN
the/DT
government/NN
./.
Bio-Technology/NNP
General/NNP
Corp./NNP
received/VBD
tenders/NNS
for/IN
97.9/CD
%/NN
of/IN
its/PRP$
7.5/CD
%/NN
convertible/JJ
senior/JJ
subordinated/VBN
notes/NNS
due/JJ
April/NNP
15/CD
,/,
1997/CD
,/,
and/CC
96/CD
%/NN
of/IN
its/PRP$
11/CD
%/NN
convertible/JJ
senior/JJ
subordinated/VBN
debentures/NNS
due/JJ
March/NNP
1/CD
,/,
2006/CD
./.
In/IN
exchange/NN
offers/NNS
that/WDT
expired/VBD
Friday/NNP
,/,
holders/NNS
of/IN
each/DT
$/$
1,000/CD
of/IN
notes/NNS
will/MD
receive/VB
$/$
250/CD
face/NN
amount/NN
of/IN
Series/NNP
A/NNP
7.5/CD
%/NN
senior/JJ
secured/VBN
convertible/JJ
notes/NNS
due/JJ
Jan./NNP
15/CD
,/,
1995/CD
,/,
and/CC
200/CD
common/JJ
shares/NNS
./.
For/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
of/IN
debentures/NNS
,/,
holders/NNS
received/VBD
$/$
250/CD
of/IN
Series/NNP
B/NNP
11/CD
%/NN
senior/JJ
secured/VBN
convertible/JJ
notes/NNS
due/JJ
Oct./NNP
15/CD
,/,
1998/CD
,/,
and/CC
200/CD
common/JJ
shares/NNS
./.
Bio-Technology/NNP
,/,
a/DT
New/NNP
York/NNP
maker/NN
of/IN
genetically/RB
engineered/VBN
products/NNS
for/IN
human/NN
and/CC
animal/NN
health/NN
care/NN
,/,
said/VBD
it/PRP
made/VBD
the/DT
exchange/NN
offer/NN
to/TO
reduce/VB
its/PRP$
interest/NN
payments/NNS
./.
Japanese/JJ
companies/NNS
have/VBP
long/RB
been/VBN
accused/VBN
of/IN
sacrificing/VBG
profit/NN
to/TO
boost/VB
sales/NNS
./.
But/CC
Fujitsu/NNP
Ltd./NNP
has/VBZ
taken/VBN
that/DT
practice/NN
to/TO
a/DT
new/JJ
extreme/NN
./.
Japan/NNP
's/POS
biggest/JJS
computer/NN
maker/NN
last/JJ
week/NN
undercut/VBD
seven/CD
competitors/NNS
to/TO
win/VB
a/DT
contract/NN
to/TO
design/VB
a/DT
mapping/NN
system/NN
for/IN
the/DT
city/NN
of/IN
Hiroshima/NNP
's/POS
waterworks/NN
./.
Its/PRP$
bid/NN
:/:
one/CD
yen/NN
,/,
or/CC
less/JJR
than/IN
a/DT
U.S./NNP
penny/NN
./.
The/DT
bid/NN
created/VBD
such/PDT
a/DT
furor/NN
that/IN
Fujitsu/NNP
said/VBD
it/PRP
is/VBZ
now/RB
offering/VBG
to/TO
withdraw/VB
from/IN
the/DT
project/NN
./.
``/``
From/IN
a/DT
common-sense/JJ
viewpoint/NN
,/,
it/PRP
was/VBD
not/RB
socially/RB
acceptable/JJ
,/,
''/''
a/DT
Fujitsu/NNP
spokeswoman/NN
said/VBD
yesterday/NN
./.
Hiroshima/NNP
city/NN
officials/NNS
could/MD
n't/RB
be/VB
reached/VBN
to/TO
find/VB
out/IN
whether/IN
they/PRP
would/MD
drop/VB
Fujitsu/NNP
's/POS
bid/NN
./.
Fujitsu/NNP
said/VBD
it/PRP
issued/VBD
the/DT
low/JJ
bid/NN
because/IN
it/PRP
wanted/VBD
a/DT
foot/NN
in/IN
the/DT
door/NN
of/IN
a/DT
potentially/RB
lucrative/JJ
market/NN
./.
``/``
We/PRP
desperately/RB
wanted/VBD
the/DT
contract/NN
because/IN
we/PRP
want/VBP
experience/NN
in/IN
the/DT
field/NN
,/,
''/''
the/DT
Fujitsu/NNP
spokeswoman/NN
said/VBD
./.
``/``
We/PRP
expect/VBP
a/DT
big/JJ
market/NN
in/IN
the/DT
future/NN
,/,
so/RB
in/IN
the/DT
long/JJ
term/NN
it/PRP
will/MD
be/VB
profitable/JJ
./.
It/PRP
's/VBZ
a/DT
kind/NN
of/IN
an/DT
investment/NN
./.
''/''
Hiroshima/NNP
's/POS
waterworks/NN
bureau/NN
said/VBD
the/DT
municipal/JJ
government/NN
had/VBD
budgeted/VBN
about/IN
11/CD
million/CD
yen/NN
$/$
77,500/CD
the/DT
project/NN
./.
``/``
I/PRP
was/VBD
flabbergasted/VBN
,/,
''/''
Tatsuhara/NNP
Yamane/NNP
,/,
head/NN
of/IN
the/DT
bureau/NN
,/,
was/VBD
quoted/VBN
by/IN
Kyodo/NNP
news/NN
service/NN
as/IN
saying/VBG
./.
``/``
I/PRP
understand/VBP
the/DT
firm/NN
's/POS
enthusiasm/NN
in/IN
getting/VBG
the/DT
deal/NN
,/,
but/CC
such/PDT
a/DT
large/JJ
company/NN
would/MD
have/VB
been/VBN
better/JJR
off/IN
showing/VBG
a/DT
little/JJ
more/JJR
discretion/NN
./.
''/''
Indeed/RB
,/,
Fujitsu/NNP
officials/NNS
admitted/VBD
they/PRP
may/MD
have/VB
been/VBN
a/DT
little/RB
overzealous/JJ
./.
The/DT
Fujitsu/NNP
spokeswoman/NN
said/VBD
headquarter/JJ
officials/NNS
did/VBD
n't/RB
approve/VB
the/DT
bid/NN
in/IN
advance/NN
and/CC
will/MD
take/VB
measures/NNS
so/RB
this/DT
kind/NN
of/IN
thing/NN
does/VBZ
n't/RB
happen/VB
in/IN
the/DT
future/NN
./.
``/``
It/PRP
's/VBZ
contrary/JJ
to/TO
common/JJ
sense/NN
,/,
''/''
she/PRP
added/VBD
./.
Specifically/RB
,/,
Fujitsu/NNP
won/VBD
the/DT
right/NN
to/TO
design/VB
the/DT
specifications/NNS
for/IN
a/DT
computerized/NN
system/NN
that/WDT
will/MD
show/VB
water/NN
lines/NNS
throughout/IN
the/DT
city/NN
./.
The/DT
system/NN
could/MD
be/VB
used/VBN
in/IN
a/DT
fire/NN
or/CC
earthquake/NN
to/TO
locate/VB
problems/NNS
,/,
among/IN
other/JJ
things/NNS
./.
A/DT
waterworks/NN
official/NN
said/VBD
Fujitsu/NNP
will/MD
have/VB
to/TO
design/VB
the/DT
system/NN
so/IN
it/PRP
would/MD
be/VB
compatible/JJ
with/IN
other/JJ
makers/NNS
'/POS
equipment/NN
./.
But/CC
industry/NN
officials/NNS
expressed/VBD
concern/NN
that/IN
the/DT
initial/JJ
project/NN
might/MD
give/VB
Fujitsu/NNP
an/DT
edge/NN
in/IN
winning/VBG
more/JJR
lucrative/JJ
contracts/NNS
later/RB
./.
Fujitsu/NNP
said/VBD
it/PRP
hopes/VBZ
the/DT
Hiroshima/NNP
contract/NN
will/MD
help/VB
it/PRP
secure/VB
pacts/NNS
with/IN
other/JJ
municipalities/NNS
./.
Japanese/JJ
local/JJ
governments/NNS
are/VBP
expected/VBN
to/TO
invest/VB
heavily/RB
in/IN
computer/NN
systems/NNS
over/IN
the/DT
next/JJ
few/JJ
years/NNS
,/,
and/CC
many/JJ
companies/NNS
expect/VBP
that/DT
field/NN
to/TO
provide/VB
substantial/JJ
revenue/NN
./.
``/``
In/IN
the/DT
near/JJ
future/NN
,/,
it/PRP
will/MD
be/VB
a/DT
big/JJ
market/NN
,/,
not/RB
just/RB
for/IN
waterworks/NN
,/,
but/CC
for/IN
all/DT
mapping/NN
systems/NNS
,/,
''/''
the/DT
Fujitsu/NNP
spokeswoman/NN
said/VBD
./.
``/``
We/PRP
can/MD
expect/VB
a/DT
hundreds-of-billions-of-yen/JJ
market/NN
./.
''/''
No/DT
foreign/JJ
companies/NNS
bid/VBP
on/IN
the/DT
Hiroshima/NNP
project/NN
,/,
according/VBG
to/TO
the/DT
bureau/NN
./.
But/CC
the/DT
Japanese/JJ
practice/NN
of/IN
deep/JJ
discounting/NN
often/RB
is/VBZ
cited/VBN
by/IN
Americans/NNPS
as/IN
a/DT
classic/JJ
barrier/NN
to/TO
entry/NN
in/IN
Japan/NNP
's/POS
market/NN
./.
Earlier/RBR
this/DT
year/NN
,/,
the/DT
U.S./NNP
complained/VBD
that/IN
Japan/NNP
's/POS
supercomputer/NN
makers/NNS
were/VBD
effectively/RB
closing/VBG
out/IN
foreign/JJ
competitors/NNS
by/IN
slashing/VBG
prices/NNS
as/RB
much/RB
as/IN
90/CD
%/NN
for/IN
universities/NNS
./.
Fujitsu/NNP
was/VBD
n't/RB
the/DT
only/JJ
company/NN
willing/JJ
to/TO
sacrifice/VB
profit/NN
on/IN
the/DT
project/NN
./.
Three/CD
competitors/NNS
bid/VBD
between/IN
300,000/CD
yen/NN
and/CC
500,000/CD
yen/NN
,/,
according/VBG
to/TO
the/DT
Hiroshima/NNP
government/NN
office/NN
./.
Other/JJ
bids/NNS
ranged/VBD
from/IN
about/IN
10/CD
million/CD
yen/NN
to/TO
29/CD
million/CD
yen/NN
./.
American/NNP
Airlines/NNPS
will/MD
expand/VB
its/PRP$
trans-Atlantic/JJ
service/NN
30/CD
%/NN
beginning/VBG
next/JJ
year/NN
with/IN
six/CD
new/JJ
daily/JJ
flights/NNS
between/IN
the/DT
U.S./NNP
and/CC
Europe/NNP
,/,
officials/NNS
announced/VBD
yesterday/NN
./.
American/NNP
,/,
a/DT
unit/NN
of/IN
AMR/NNP
Corp./NNP
,/,
is/VBZ
the/DT
nation/NN
's/POS
largest/JJS
airline/NN
./.
The/DT
new/JJ
nonstop/JJ
flights/NNS
,/,
starting/VBG
next/JJ
May/NNP
,/,
will/MD
include/VB
Chicago-Warsaw/NNP
,/,
Chicago-Helsinki/NNP
,/,
Miami-Madrid/NNP
,/,
Dallas-Barcelona/NNP
,/,
a/DT
second/JJ
daily/JJ
Chicago-Paris/NNP
flight/NN
and/CC
a/DT
second/JJ
daily/JJ
Chicago-Manchester/NNP
flight/NN
,/,
the/DT
officials/NNS
said/VBD
./.
Chicago/NNP
has/VBZ
the/DT
largest/JJS
population/NN
of/IN
citizens/NNS
of/IN
Polish/JJ
heritage/NN
in/IN
any/DT
city/NN
outside/IN
Poland/NNP
./.
With/IN
the/DT
new/JJ
service/NN
,/,
American/NNP
will/MD
fly/VB
161/CD
flights/NNS
a/DT
week/NN
to/TO
17/CD
European/JJ
cities/NNS
./.
The/DT
additions/NNS
solidify/VBP
American/NNP
's/POS
position/NN
as/IN
the/DT
third-largest/JJ
U.S./NNP
transatlantic/NN
carrier/NN
,/,
behind/IN
PanAm/NNP
Corp./NNP
's/POS
Pan/NNP
American/NNP
World/NNP
Airways/NNPS
and/CC
Trans/NNP
World/NNP
Airlines/NNPS
./.
Karstadt/NNP
AG/NNP
said/VBD
sales/NNS
for/IN
its/PRP$
domestic/JJ
group/NN
rose/VBD
4.6/CD
%/NN
in/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
1989/CD
from/IN
a/DT
year/NN
earlier/RBR
./.
The/DT
West/JJ
German/JJ
retailing/VBG
group/NN
also/RB
said/VBD
that/IN
the/DT
results/NNS
of/IN
the/DT
first/JJ
three/CD
quarters/NNS
suggest/VBP
it/PRP
will/MD
meet/VB
its/PRP$
profit/NN
goal/NN
for/IN
the/DT
year/NN
./.
Earnings/NNS
at/IN
the/DT
department-store/NN
division/NN
,/,
which/WDT
generates/VBZ
the/DT
bulk/NN
of/IN
profit/NN
,/,
should/MD
remain/VB
at/IN
least/JJS
stable/JJ
,/,
while/IN
income/NN
at/IN
the/DT
mail-order/NN
and/CC
tourism/NN
units/NNS
is/VBZ
likely/JJ
to/TO
fall/VB
slightly/RB
from/IN
1988/CD
,/,
the/DT
company/NN
said/VBD
./.
Karstadt/NNP
did/VBD
n't/RB
give/VB
any/DT
group/NN
sales/NNS
or/CC
profit/NN
figures/NNS
for/IN
the/DT
first/JJ
nine/CD
months/NNS
./.
Georgia-Pacific/NNP
Corp./NNP
offered/VBD
to/TO
acquire/VB
Great/NNP
Northern/NNP
Nekoosa/NNP
Corp./NNP
for/IN
$/$
58/CD
a/DT
share/NN
,/,
or/CC
about/IN
$/$
3.18/CD
billion/CD
./.
The/DT
offer/NN
capped/VBD
a/DT
week/NN
of/IN
rumors/NNS
that/IN
Georgia-Pacific/NNP
,/,
an/DT
Atlanta-based/JJ
forest-products/NNS
company/NN
,/,
was/VBD
considering/VBG
making/VBG
a/DT
bid/NN
for/IN
Nekoosa/NNP
,/,
a/DT
paper-products/NNS
concern/NN
based/VBN
in/IN
Norwalk/NNP
,/,
Conn/NNP
./.
Executives/NNS
at/IN
Nekoosa/NNP
could/MD
n't/RB
be/VB
reached/VBN
,/,
and/CC
officials/NNS
at/IN
Georgia/NNP
Pacific/NNP
declined/VBD
to/TO
comment/VB
./.
Analysts/NNS
,/,
however/RB
,/,
were/VBD
surprised/VBN
because/IN
the/DT
tender/NN
offer/NN
appeared/VBD
unsolicited/JJ
./.
``/``
It/PRP
's/VBZ
quite/RB
a/DT
bombshell/NN
,/,
''/''
said/VBD
one/CD
,/,
adding/VBG
that/IN
the/DT
offer/NN
could/MD
spark/VB
a/DT
period/NN
of/IN
industry/NN
consolidation/NN
./.
The/DT
two/CD
companies/NNS
would/MD
appear/VB
to/TO
be/VB
a/DT
logical/JJ
fit/NN
because/IN
of/IN
their/PRP$
complementary/JJ
lines/NNS
,/,
and/CC
analysts/NNS
described/VBD
the/DT
offer/NN
,/,
representing/VBG
a/DT
36/CD
%/NN
premium/NN
over/IN
Nekoosa/NNP
's/POS
market/NN
price/NN
,/,
as/IN
fair/JJ
./.
Nekoosa/NNP
closed/VBD
yesterday/NN
at/IN
$/$
42.75/CD
,/,
up/RB
$/$
2.75/CD
,/,
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
But/CC
industry/NN
observers/NNS
still/RB
questioned/VBD
whether/IN
Georgia/NNP
Pacific/NNP
will/MD
ultimately/RB
prevail/VB
./.
``/``
You/PRP
have/VBP
to/TO
watch/VB
out/IN
for/IN
counterbids/NNS
,/,
''/''
said/VBD
one/CD
analyst/NN
./.
``/``
International/NNP
Paper/NNP
or/CC
Weyerhaeuser/NNP
could/MD
step/VB
in/IN
./.
''/''
The/DT
bid/NN
for/IN
Great/NNP
Northern/NNP
,/,
a/DT
notice/NN
of/IN
which/WDT
appears/VBZ
in/IN
an/DT
advertisement/NN
in/IN
today/NN
's/POS
Wall/NNP
Street/NNP
Journal/NNP
,/,
is/VBZ
the/DT
first/RB
big/JJ
takeover/NN
offer/NN
since/IN
the/DT
collapse/NN
of/IN
a/DT
$/$
6.79/CD
billion/CD
buy-out/NN
of/IN
United/NNP
Airlines/NNPS
parent/NN
UAL/NNP
Corp./NNP
Oct./NNP
13/CD
./.
That/DT
collapse/NN
,/,
following/VBG
on/IN
the/DT
heels/NNS
of/IN
disarray/NN
in/IN
the/DT
market/NN
for/IN
high-risk/JJ
,/,
high-yield/JJ
bonds/NNS
,/,
cast/VBD
doubt/NN
on/IN
the/DT
entire/JJ
takeover/NN
business/NN
,/,
which/WDT
has/VBZ
fueled/VBN
both/DT
big/JJ
profits/NNS
among/IN
Wall/NNP
Street/NNP
securities/NNS
firms/NNS
and/CC
big/JJ
gains/NNS
in/IN
the/DT
stock/NN
market/NN
generally/RB
./.
While/IN
Georgia-Pacific/NNP
's/POS
stock/NN
has/VBZ
outperformed/VBN
the/DT
market/NN
in/IN
the/DT
past/JJ
two/CD
years/NNS
,/,
Nekoosa/NNP
has/VBZ
lagged/VBN
the/DT
market/NN
in/IN
the/DT
same/JJ
period/NN
./.
Yesterday/NN
's/POS
rise/NN
in/IN
Nekoosa/NNP
's/POS
share/NN
price/NN
came/VBD
on/IN
volume/NN
of/IN
786,700/CD
shares/NNS
,/,
four/CD
times/NNS
the/DT
daily/JJ
average/NN
./.
According/VBG
to/TO
Dow/NNP
Jones/NNP
Professional/NNP
Investor/NNP
Report/NNP
,/,
options/NNS
trading/NN
in/IN
Nekoosa/NNP
was/VBD
also/RB
heavy/JJ
,/,
ranking/VBG
only/RB
behind/IN
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
and/CC
UAL/NNP
in/IN
volume/NN
on/IN
the/DT
Chicago/NNP
Board/NNP
Options/NNPS
Exchange/NNP
./.
According/VBG
to/TO
the/DT
Value/NNP
Line/NNP
Investment/NNP
Survey/NNP
,/,
demand/NN
for/IN
Nekoosa/NNP
's/POS
commodity/NN
paper/NN
has/VBZ
weakened/VBN
,/,
prompting/VBG
earnings/NNS
to/TO
decline/VB
by/IN
6.6/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
ended/VBD
Sept./NNP
30/CD
./.
Value/NNP
Line/NNP
added/VBD
,/,
``/``
With/IN
discounts/NNS
widening/VBG
on/IN
business/NN
papers/NNS
,/,
and/CC
with/IN
newsprint/NN
and/CC
corrugated/JJ
shipments/NNS
flat/JJ
,/,
we/PRP
expect/VBP
negative/JJ
earnings/NNS
comparisons/NNS
through/IN
next/JJ
year/NN
./.
''/''
By/IN
contrast/NN
,/,
Value/NNP
Line/NNP
said/VBD
Georgia-Pacific/NNP
``/``
is/VBZ
in/IN
a/DT
comparatively/RB
good/JJ
position/NN
to/TO
deal/VB
with/IN
weakening/VBG
paper/NN
markets/NNS
,/,
''/''
because/IN
its/PRP$
production/NN
is/VBZ
concentrated/VBN
not/RB
in/IN
the/DT
Northwest/NN
but/CC
in/IN
the/DT
South/NN
,/,
where/WRB
it/PRP
should/MD
be/VB
able/JJ
to/TO
avoid/VB
some/DT
of/IN
the/DT
cost/NN
pressures/NNS
from/IN
rising/VBG
wood-chip/NN
prices/NNS
./.
Also/RB
,/,
it/PRP
is/VBZ
n't/RB
exposed/VBN
to/TO
the/DT
weakening/NN
newsprint/NN
business/NN
,/,
and/CC
is/VBZ
strong/JJ
in/IN
the/DT
less-cyclical/JJ
tissue/NN
business/NN
./.
The/DT
purchase/NN
of/IN
Nekoosa/NNP
would/MD
easily/RB
eclipse/VB
Georgia-Pacific/NNP
's/POS
$/$
530/CD
million/CD
acquisition/NN
of/IN
Brunswick/NNP
Pulp/NNP
&/CC
Paper/NNP
Co./NNP
last/JJ
year/NN
./.
That/DT
acquisition/NN
,/,
which/WDT
also/RB
included/VBD
the/DT
assumption/NN
of/IN
$/$
135/CD
million/CD
in/IN
debt/NN
,/,
was/VBD
designed/VBN
to/TO
allow/VB
Georgia-Pacific/NNP
to/TO
capitalize/VB
on/IN
the/DT
strong/JJ
demand/NN
for/IN
softwood/JJ
pulp/NN
,/,
as/RB
well/RB
as/IN
reduce/VB
its/PRP$
exposure/NN
to/TO
the/DT
housing/NN
market/NN
./.
Wasserstein/NNP
Perella/NNP
&/CC
Co./NNP
is/VBZ
the/DT
dealer-manager/NN
for/IN
the/DT
offer/NN
,/,
which/WDT
will/MD
expire/VB
Nov./NNP
29/CD
,/,
unless/IN
extended/VBN
./.
Ratners/NNP
Group/NNP
PLC/NNP
's/POS
U.S./NNP
subsidiary/NN
has/VBZ
agreed/VBN
to/TO
acquire/VB
jewelry/NN
retailer/NN
Weisfield/NNP
's/POS
Inc./NNP
for/IN
$/$
50/CD
a/DT
share/NN
,/,
or/CC
about/IN
$/$
55/CD
million/CD
./.
Weisfield/NNP
's/POS
shares/NNS
soared/VBD
on/IN
the/DT
announcement/NN
yesterday/NN
,/,
closing/VBG
up/RB
$/$
11/CD
to/TO
close/VB
at/IN
$/$
50/CD
in/IN
national/JJ
over-the-counter/JJ
trading/NN
./.
Ratners/NNP
and/CC
Weisfield/NNP
's/POS
said/VBD
they/PRP
reached/VBD
an/DT
agreement/NN
in/IN
principle/NN
for/IN
the/DT
acquisition/NN
of/IN
Weisfield/NNP
's/POS
by/IN
Sterling/NNP
Inc/NNP
./.
The/DT
companies/NNS
said/VBD
the/DT
acquisition/NN
is/VBZ
subject/JJ
to/TO
a/DT
definitive/JJ
agreement/NN
./.
They/PRP
said/VBD
they/PRP
expect/VBP
the/DT
transaction/NN
to/TO
be/VB
completed/VBN
by/IN
Dec./NNP
15/CD
./.
Weisfield/NNP
's/POS
,/,
based/VBN
in/IN
Seattle/NNP
,/,
Wash./NNP
,/,
currently/RB
operates/VBZ
87/CD
specialty/NN
jewelry/NN
stores/NNS
in/IN
nine/CD
states/NNS
./.
In/IN
the/DT
fiscal/JJ
year/NN
ended/VBD
Jan./NNP
31/CD
,/,
the/DT
company/NN
reported/VBD
sales/NNS
of/IN
$/$
59.5/CD
million/CD
and/CC
pretax/JJ
profit/NN
of/IN
$/$
2.9/CD
million/CD
./.
Ratners/NNP
,/,
which/WDT
controls/VBZ
25/CD
%/NN
of/IN
the/DT
British/JJ
jewelry/NN
market/NN
,/,
would/MD
increase/VB
the/DT
number/NN
of/IN
its/PRP$
U.S./NNP
stores/NNS
to/TO
about/IN
450/CD
stores/NNS
from/IN
360/CD
./.
It/PRP
has/VBZ
said/VBN
it/PRP
hopes/VBZ
to/TO
control/VB
5/CD
%/NN
of/IN
jewelry/NN
business/NN
in/IN
the/DT
U.S./NNP
by/IN
1992/CD
;/:
currently/RB
it/PRP
controls/VBZ
about/IN
2/CD
%/NN
./.
McDonnell/NNP
Douglas/NNP
Corp./NNP
received/VBD
contracts/NNS
totaling/VBG
$/$
244.8/CD
million/CD
for/IN
72/CD
F-A-18/NN
aircraft/NN
for/IN
the/DT
Navy/NNP
and/CC
helicopter/NN
spare/JJ
parts/NNS
for/IN
the/DT
Army/NNP
./.
Aerojet/NNP
General/NNP
Corp./NNP
,/,
a/DT
unit/NN
of/IN
GenCorp/NNP
Inc./NNP
,/,
was/VBD
awarded/VBN
a/DT
$/$
40.1/CD
million/CD
Air/NNP
Force/NNP
contract/NN
for/IN
Minuteman/NNP
missile/NN
rocket/NN
motors/NNS
./.
Rockwell/NNP
International/NNP
Corp./NNP
received/VBD
a/DT
$/$
26.7/CD
million/CD
Navy/NNP
contract/NN
for/IN
submarine/JJ
ballistic/JJ
missiles/NNS
./.
Honeywell/NNP
Inc./NNP
got/VBD
a/DT
$/$
22.3/CD
million/CD
Navy/NNP
contract/NN
for/IN
aircraft/NN
missile/NN
warning/VBG
sets/NNS
./.
Beech/NNP
Aircraft/NNP
Corp./NNP
,/,
a/DT
unit/NN
of/IN
Raytheon/NNP
Co./NNP
,/,
received/VBD
an/DT
$/$
11.5/CD
million/CD
Air/NNP
Force/NNP
contract/NN
for/IN
C-12/NN
aircraft/NN
support/NN
./.
Analog/NNP
Devices/NNPS
Inc./NNP
said/VBD
it/PRP
may/MD
purchase/VB
as/RB
many/JJ
as/IN
one/CD
million/CD
of/IN
its/PRP$
common/JJ
shares/NNS
over/IN
the/DT
next/JJ
several/JJ
months/NNS
./.
Analog/NNP
also/RB
said/VBD
that/IN
a/DT
one/CD
million/CD
share/NN
buy-back/JJ
program/NN
announced/VBD
in/IN
March/NNP
is/VBZ
substantially/RB
complete/JJ
./.
The/DT
company/NN
,/,
which/WDT
makes/VBZ
integrated/VBN
circuits/NNS
and/CC
other/JJ
electronic/JJ
parts/NNS
,/,
now/RB
has/VBZ
about/IN
47/CD
million/CD
common/JJ
shares/NNS
outstanding/JJ
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
Analog/NNP
Devices/NNPS
closed/VBD
at/IN
$/$
8.875/CD
,/,
up/RB
25/CD
cents/NNS
./.
John/NNP
Lehman/NNP
's/POS
editorial-page/JJ
article/NN
on/IN
the/DT
Pentagon/NNP
as/IN
a/DT
haunted/VBN
house/NN
omits/VBZ
the/DT
real/JJ
roots/NNS
of/IN
its/PRP$
ghost/NN
population/NN
``/``
In/IN
the/DT
Pentagon/NNP
,/,
the/DT
Undead/NN
Walk/VBP
,/,
''/''
Oct./NNP
18/CD
The/DT
media/NNS
's/POS
treatment/NN
of/IN
the/DT
Defense/NNP
Department/NNP
during/IN
the/DT
Vietnam/NNP
War/NNP
,/,
the/DT
Carter/NNP
administration/NN
's/POS
denigration/NN
of/IN
the/DT
military/JJ
,/,
and/CC
the/DT
public/NN
scapegoating/NN
of/IN
Lt./NNP
Col./NNP
Oliver/NNP
North/NNP
have/VBP
all/DT
served/VBD
to/TO
emasculate/VB
the/DT
poor/JJ
souls/NNS
who/WP
live/VBP
there/RB
./.
The/DT
resulting/VBG
haunted/VBN
house/NN
tends/VBZ
to/TO
reward/VB
followership/NN
,/,
not/RB
leadership/NN
,/,
it/PRP
creates/VBZ
guilt/NN
about/IN
wearing/VBG
the/DT
uniform/NN
,/,
and/CC
raises/VBZ
doubt/NN
about/IN
having/VBG
the/DT
will/NN
to/TO
fulfill/VB
the/DT
ghosts/NNS
'/POS
role/NN
,/,
i.e./FW
,/,
to/TO
be/VB
able/JJ
to/TO
win/VB
if/IN
called/VBN
on/IN
./.
Perhaps/RB
the/DT
Halloween/NNP
season/NN
is/VBZ
a/DT
good/JJ
time/NN
for/IN
Congress/NNP
to/TO
be/VB
looking/VBG
at/IN
funding/NN
for/IN
some/DT
ghostbusting/NN
equipment/NN
./.
Mike/NNP
Greece/NNP
Former/NNP
Air/NNP
Force/NNP
Career/NNP
Officer/NNP
New/NNP
York/NNP
Where/WRB
does/VBZ
Mr./NNP
Lehman/NNP
get/VB
off/IN
castigating/VBG
Gen./NNP
George/NNP
Marshall/NNP
for/IN
muscling/VBG
in/IN
on/IN
naval/JJ
prerogatives/NNS
?/.
Ever/RB
since/IN
the/DT
days/NNS
of/IN
Alfred/NNP
Thayer/NNP
Mahan/NNP
U.S./NNP
naval/JJ
officer/NN
and/CC
naval/JJ
historian/NN
Teddy/NNP
Roosevelt/NNP
the/DT
Navy/NNP
has/VBZ
been/VBN
the/DT
service/NN
most/RBS
favored/VBN
by/IN
Washington/NNP
officialdom/NN
./.
Mr./NNP
Lehman/NNP
overlooks/VBZ
the/DT
fact/NN
that/IN
the/DT
Navy/NNP
possesses/VBZ
its/PRP$
own/JJ
air/NN
force/NN
the/DT
carrier/NN
fleet/NN
its/PRP$
own/JJ
army/NN
the/DT
Marines/NNPS
which/WDT
in/IN
turn/NN
has/VBZ
its/PRP$
own/JJ
air/NN
force/NN
./.
Of/IN
course/NN
these/DT
turf/JJ
battles/NNS
are/VBP
unseemly/JJ
,/,
wasteful/JJ
and/CC
potentially/RB
dangerous/JJ
and/CC
should/MD
be/VB
resolved/VBN
in/IN
the/DT
interest/NN
of/IN
national/JJ
security/NN
,/,
but/CC
Mr./NNP
Lehman/NNP
seems/VBZ
to/TO
be/VB
part/NN
of/IN
the/DT
problem/NN
rather/RB
than/IN
part/NN
of/IN
the/DT
answer/NN
./.
L.H./NNP
Blum/NNP
Beaumont/NNP
,/,
Texas/NNP
I/PRP
agree/VBP
with/IN
Mr./NNP
Lehman/NNP
100/CD
%/NN
!/.
Is/VBZ
n't/RB
this/DT
the/DT
same/JJ
guy/NN
who/WP
resigned/VBD
as/IN
Navy/NNP
secretary/NN
because/IN
he/PRP
could/MD
n't/RB
get/VB
his/PRP$
1,000-ship/JJ
Navy/NNP
?/.
I/PRP
personally/RB
do/VBP
not/RB
want/VB
to/TO
hasten/VB
Mr./NNP
Lehman/NNP
's/POS
demise/NN
,/,
but/CC
I/PRP
can/MD
see/VB
him/PRP
figuring/VBG
prominently/RB
in/IN
his/PRP$
own/JJ
article/NN
./.
Carl/NNP
Banerian/NNP
Jr/NNP
./.
Birmingham/NNP
,/,
Mich/NNP
./.
For/IN
the/DT
sixth/JJ
time/NN
in/IN
as/RB
many/JJ
years/NNS
,/,
Continental/NNP
Airlines/NNPS
has/VBZ
a/DT
new/JJ
senior/JJ
executive/NN
./.
Gone/VBN
is/VBZ
D./NNP
Joseph/NNP
Corr/NNP
,/,
the/DT
airline/NN
's/POS
chairman/NN
,/,
chief/NN
executive/NN
and/CC
president/NN
,/,
appointed/VBN
only/RB
last/JJ
December/NNP
./.
Mr./NNP
Corr/NNP
resigned/VBD
to/TO
pursue/VB
other/JJ
business/NN
interests/NNS
,/,
the/DT
airline/NN
said/VBD
./.
He/PRP
could/MD
not/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
Succeeding/VBG
him/PRP
as/IN
chairman/NN
and/CC
chief/NN
executive/NN
will/MD
be/VB
Frank/NNP
Lorenzo/NNP
,/,
chairman/NN
and/CC
chief/NN
executive/NN
of/IN
Continental/NNP
's/POS
parent/NN
,/,
Texas/NNP
Air/NNP
Corp/NNP
./.
Mr./NNP
Lorenzo/NNP
,/,
49/CD
years/NNS
old/JJ
,/,
is/VBZ
reclaiming/VBG
the/DT
job/NN
that/WDT
was/VBD
his/PRP
before/IN
Mr./NNP
Corr/NNP
signed/VBD
on/IN
./.
The/DT
airline/NN
also/RB
named/VBD
Mickey/NNP
Foret/NNP
as/IN
president/NN
./.
Mr./NNP
Foret/NNP
,/,
44/CD
,/,
is/VBZ
a/DT
15-year/JJ
veteran/NN
of/IN
Texas/NNP
Air/NNP
and/CC
Texas/NNP
International/NNP
Airlines/NNPS
,/,
its/PRP$
predecessor/NN
./.
Most/RBS
recently/RB
he/PRP
had/VBD
been/VBN
executive/JJ
vice/NN
president/NN
for/IN
planning/NN
and/CC
finance/NN
at/IN
Texas/NNP
Air/NNP
./.
Top/JJ
executives/NNS
at/IN
Continental/NNP
have/VBP
n't/RB
lasted/VBN
long/RB
,/,
especially/RB
those/DT
recruited/VBN
from/IN
outside/NN
./.
But/CC
Mr./NNP
Corr/NNP
's/POS
tenure/NN
was/VBD
shorter/JJR
than/IN
most/JJS
./.
The/DT
48-year-old/JJ
Mr./NNP
Corr/NNP
was/VBD
hired/VBN
largely/RB
because/IN
he/PRP
was/VBD
credited/VBN
with/IN
returning/VBG
Trans/NNP
World/NNP
Airlines/NNPS
Inc./NNP
to/TO
profitability/NN
while/IN
he/PRP
was/VBD
its/PRP$
president/NN
from/IN
1986/CD
to/TO
1988/CD
./.
Before/IN
that/DT
,/,
he/PRP
was/VBD
an/DT
executive/NN
with/IN
a/DT
manufacturing/VBG
concern/NN
./.
At/IN
Continental/NNP
he/PRP
cut/VBD
money-losing/JJ
operations/NNS
,/,
which/WDT
helped/VBD
produce/VB
a/DT
modest/JJ
profit/NN
in/IN
this/DT
year/NN
's/POS
second/JJ
quarter/NN
./.
But/CC
Mr./NNP
Corr/NNP
,/,
a/DT
stunt/NN
pilot/NN
in/IN
his/PRP$
spare/JJ
time/NN
,/,
was/VBD
understood/VBN
to/TO
be/VB
frustrated/VBN
by/IN
what/WP
he/PRP
regarded/VBD
as/RB
limited/VBN
freedom/NN
under/IN
Mr./NNP
Lorenzo/NNP
./.
While/IN
not/RB
officially/RB
an/DT
executive/NN
at/IN
Continental/NNP
during/IN
Mr./NNP
Corr/NNP
's/POS
tenure/NN
,/,
Mr./NNP
Lorenzo/NNP
is/VBZ
known/VBN
for/IN
keeping/VBG
close/JJ
tabs/NNS
on/IN
Texas/NNP
Air/NNP
's/POS
operating/VBG
units/NNS
./.
Continental/NNP
is/VBZ
Texas/NNP
Air/NNP
's/POS
flagship/NN
and/CC
was/VBD
built/VBN
painfully/RB
to/TO
its/PRP$
present/JJ
size/NN
under/IN
Mr./NNP
Lorenzo/NNP
after/IN
emerging/VBG
from/IN
bankruptcy/NN
proceedings/NNS
in/IN
1986/CD
./.
It/PRP
's/VBZ
unclear/JJ
what/WDT
role/NN
,/,
if/IN
any/DT
,/,
Mr./NNP
Lorenzo/NNP
's/POS
recent/JJ
exploration/NN
of/IN
a/DT
possible/JJ
sale/NN
of/IN
a/DT
stake/NN
in/IN
Continental/NNP
had/VBD
in/IN
Mr./NNP
Corr/NNP
's/POS
departure/NN
./.
One/CD
source/NN
familiar/JJ
with/IN
the/DT
airline/NN
said/VBD
,/,
however/RB
,/,
that/IN
Mr./NNP
Corr/NNP
was/VBD
n't/RB
informed/VBN
in/IN
advance/NN
during/IN
the/DT
summer/NN
when/WRB
Mr./NNP
Lorenzo/NNP
began/VBD
discussions/NNS
with/IN
potential/JJ
buyers/NNS
./.
During/IN
his/PRP$
tenure/NN
,/,
Mr./NNP
Corr/NNP
attempted/VBD
through/IN
a/DT
series/NN
of/IN
meetings/NNS
to/TO
inform/VB
managers/NNS
of/IN
some/DT
of/IN
the/DT
company/NN
's/POS
future/JJ
plans/NNS
,/,
traveled/VBD
widely/RB
to/TO
talk/VB
to/TO
employees/NNS
and/CC
backed/VBD
training/NN
sessions/NNS
designed/VBN
to/TO
improve/VB
the/DT
carrier/NN
's/POS
image/NN
./.
Mr./NNP
Foret/NNP
is/VBZ
one/CD
of/IN
a/DT
handful/NN
of/IN
executives/NNS
Mr./NNP
Lorenzo/NNP
has/VBZ
relied/VBN
on/IN
over/IN
the/DT
years/NNS
./.
Previously/RB
,/,
he/PRP
had/VBD
served/VBN
in/IN
financial/JJ
planning/VBG
positions/NNS
at/IN
the/DT
company/NN
's/POS
Eastern/NNP
Airlines/NNPS
unit/NN
./.
Another/DT
longtime/NN
ally/NN
,/,
Phil/NNP
Bakes/NNP
,/,
currently/RB
heads/VBZ
Eastern/NNP
,/,
now/RB
in/IN
Chapter/NN
11/CD
bankruptcy/NN
proceedings/NNS
./.
Mr./NNP
Bakes/NNP
previously/RB
had/VBD
a/DT
turn/NN
at/IN
running/VBG
Continental/NNP
./.
Among/IN
the/DT
other/JJ
alumni/NNS
are/VBP
Stephen/NNP
Wolf/NNP
,/,
now/RB
chairman/NN
of/IN
UAL/NNP
Inc./NNP
,/,
and/CC
Thomas/NNP
Plaskett/NNP
,/,
president/NN
of/IN
Pan/NNP
Am/NNP
Corp/NNP
./.
Doskocil/NNP
Cos./NNP
said/VBD
its/PRP$
bank-debt/NN
payments/NNS
have/VBP
been/VBN
extended/VBN
until/IN
May/NNP
31/CD
,/,
1990/CD
,/,
to/TO
give/VB
it/PRP
more/JJR
time/NN
to/TO
sell/VB
its/PRP$
Wilson/NNP
Foods/NNP
Corp./NNP
retail/JJ
and/CC
fresh/JJ
meat/NN
operations/NNS
./.
The/DT
company/NN
was/VBD
to/TO
repay/VB
$/$
58/CD
million/CD
in/IN
debt/NN
on/IN
Dec./NNP
31/CD
and/CC
$/$
15/CD
million/CD
on/IN
March/NNP
31/CD
./.
The/DT
company/NN
acquired/VBD
the/DT
debt/NN
when/WRB
it/PRP
paid/VBD
$/$
155/CD
million/CD
to/TO
purchase/VB
Wilson/NNP
last/JJ
year/NN
./.
An/DT
agreement/NN
to/TO
sell/VB
the/DT
Wilson/NNP
assets/NNS
for/IN
$/$
150/CD
million/CD
in/IN
cash/NN
and/CC
notes/NNS
collapsed/VBD
in/IN
late/JJ
September/NNP
,/,
when/WRB
the/DT
buyer/NN
,/,
a/DT
company/NN
controlled/VBN
by/IN
George/NNP
Gillett/NNP
,/,
could/MD
n't/RB
secure/VB
financing/NN
./.
Companies/NNS
listed/VBN
below/IN
reported/VBD
quarterly/JJ
profit/NN
substantially/RB
different/JJ
from/IN
the/DT
average/NN
of/IN
analysts/NNS
'/POS
estimates/NNS
./.
The/DT
companies/NNS
are/VBP
followed/VBN
by/IN
at/IN
least/JJS
three/CD
analysts/NNS
,/,
and/CC
had/VBD
a/DT
minimum/JJ
five-cent/JJ
change/NN
in/IN
actual/JJ
earnings/NNS
per/IN
share/NN
./.
Estimated/VBN
and/CC
actual/JJ
results/NNS
involving/VBG
losses/NNS
are/VBP
omitted/VBN
./.
The/DT
percent/NN
difference/NN
compares/VBZ
actual/JJ
profit/NN
with/IN
the/DT
30-day/JJ
estimate/NN
where/WRB
at/IN
least/JJS
three/CD
analysts/NNS
have/VBP
issues/NNS
forecasts/NNS
in/IN
the/DT
past/JJ
30/CD
days/NNS
./.
Otherwise/RB
,/,
actual/JJ
profit/NN
is/VBZ
compared/VBN
with/IN
the/DT
300-day/JJ
estimate/NN
./.
Source/NN
:/:
Zacks/NNP
Investment/NNP
Research/NNP
Charles/NNP
D/NNP
./.
Way/NNP
,/,
president/NN
of/IN
this/DT
restaurant/NN
operator/NN
,/,
assumed/VBD
the/DT
additional/JJ
post/NN
of/IN
chief/NN
executive/NN
officer/NN
./.
He/PRP
succeeds/VBZ
Alvin/NNP
A./NNP
McCall/NNP
in/IN
the/DT
position/NN
./.
Mr./NNP
McCall/NNP
will/MD
remain/VB
chairman/NN
./.
Australia/NNP
's/POS
inflation/NN
is/VBZ
expected/VBN
to/TO
rise/VB
as/RB
high/JJ
as/IN
8.3/CD
%/NN
in/IN
the/DT
quarter/NN
ending/VBG
March/NNP
30/CD
,/,
but/CC
could/MD
fall/VB
to/TO
around/IN
7/CD
%/NN
by/IN
June/NNP
,/,
according/VBG
to/TO
economists/NNS
./.
The/DT
government/NN
said/VBD
the/DT
consumer/NN
price/NN
index/NN
rose/VBD
2.3/CD
%/NN
in/IN
the/DT
quarter/NN
ended/VBD
Sept./NNP
30/CD
from/IN
the/DT
previous/JJ
quarter/NN
and/CC
8/CD
%/NN
from/IN
a/DT
year/NN
ago/IN
./.
Charles/NNP
A./NNP
Pearce/NNP
,/,
66/CD
years/NNS
old/JJ
,/,
will/MD
retire/VB
from/IN
his/PRP$
post/NN
as/IN
chief/NN
executive/JJ
officer/NN
of/IN
this/DT
bank/NN
holding/VBG
company/NN
effective/JJ
Dec./NNP
31/CD
./.
He/PRP
will/MD
remain/VB
chairman/NN
./.
Charles/NNP
R./NNP
Simpson/NNP
Jr./NNP
,/,
46/CD
,/,
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
,/,
will/MD
assume/VB
the/DT
chief/NN
executive/NN
's/POS
post/NN
./.
It/PRP
is/VBZ
a/DT
peaceful/JJ
time/NN
in/IN
this/DT
part/NN
of/IN
western/JJ
India/NNP
./.
The/DT
summer/NN
crop/NN
is/VBZ
harvested/VBN
,/,
winter/NN
sowing/NN
has/VBZ
yet/RB
to/TO
begin/VB
./.
Farmers/NNS
in/IN
loose/JJ
turbans/NNS
and/CC
fancy/JJ
earrings/NNS
spend/VBP
their/PRP$
afternoons/NNS
laughing/VBG
and/CC
gossiping/VBG
at/IN
the/DT
markets/NNS
./.
One/CD
could/MD
imagine/VB
such/PDT
a/DT
lull/NN
in/IN
the/DT
lives/NNS
of/IN
the/DT
Arabs/NNPS
before/IN
the/DT
quadrupling/NN
of/IN
oil/NN
prices/NNS
./.
For/IN
just/RB
as/IN
the/DT
Arabs/NNPS
were/VBD
in/IN
the/DT
1960s/CD
,/,
the/DT
farmers/NNS
of/IN
Sidhpur/NNP
are/VBP
on/IN
the/DT
brink/NN
of/IN
global/JJ
power/NN
and/CC
fame/NN
./.
The/DT
Arabs/NNPS
had/VBD
merely/RB
oil/NN
./.
These/DT
farmers/NNS
may/MD
have/VB
a/DT
grip/NN
on/IN
the/DT
world/NN
's/POS
very/JJ
heart/NN
./.
Or/CC
,/,
at/IN
least/JJS
,/,
its/PRP$
heart/NN
disease/NN
./.
That/DT
is/VBZ
because/IN
Sidhpur/NNP
has/VBZ
a/DT
near-monopoly/NN
on/IN
the/DT
world/NN
's/POS
supply/NN
of/IN
flea/NN
seed/NN
,/,
also/RB
known/VBN
as/IN
flea/NN
wort/NN
or/CC
,/,
in/IN
Western/JJ
parlance/NN
,/,
psyllium/NN
:/:
a/DT
tiny/JJ
,/,
tasteless/JJ
,/,
obscure/JJ
seed/NN
that/IN
,/,
according/VBG
to/TO
early/JJ
research/NN
,/,
may/MD
reduce/VB
cholesterol/NN
levels/NNS
in/IN
the/DT
blood/NN
./.
Ever/RB
since/IN
the/DT
link/NN
to/TO
cholesterol/NN
was/VBD
disclosed/VBN
,/,
Americans/NNPS
have/VBP
begun/VBN
scarfing/VBG
up/IN
psyllium/NN
in/IN
their/PRP$
breakfast/NN
cereals/NNS
./.
If/IN
further/JJ
research/NN
proves/VBZ
the/DT
seed/NN
's/POS
benefits/NNS
,/,
this/DT
dusty/JJ
farm/NN
district/NN
could/MD
become/VB
the/DT
epicenter/NN
of/IN
a/DT
health-food/NN
fad/NN
to/TO
rival/VB
all/DT
fads/NNS
since/IN
cod-liver/NN
oil/NN
./.
``/``
This/DT
seed/NN
's/VBZ
not/RB
grown/VBN
anywhere/RB
else/RB
in/IN
India/NNP
,/,
or/CC
anywhere/RB
else/RB
in/IN
the/DT
world/NN
,/,
''/''
says/VBZ
T.V./NNP
Krishnamurthy/NNP
,/,
a/DT
vice/NN
president/NN
of/IN
Procter/NNP
&/CC
Gamble/NNP
India/NNP
Ltd./NNP
,/,
a/DT
major/JJ
psyllium/NN
buyer/NN
and/CC
promoter/NN
./.
``/``
The/DT
proper/JJ
climatic/JJ
conditions/NNS
do/VBP
n't/RB
exist/VB
in/IN
many/JJ
places/NNS
in/IN
the/DT
world/NN
./.
''/''
Arvind/NNP
Patel/NNP
,/,
a/DT
processor/NN
and/CC
exporter/NN
of/IN
the/DT
seed/NN
,/,
raves/VBZ
:/:
``/``
If/IN
psyllium/NN
takes/VBZ
the/DT
place/NN
of/IN
oat/NN
bran/NN
,/,
it/PRP
will/MD
be/VB
huge/JJ
./.
''/''
Whether/IN
psyllium/NN
makes/VBZ
Sidhpur/NNP
's/POS
fortune/NN
depends/VBZ
on/IN
cholesterol-fearing/JJ
Americans/NNPS
,/,
the/DT
U.S./NNP
Food/NNP
and/CC
Drug/NNP
Administration/NNP
and/CC
,/,
of/IN
course/NN
,/,
the/DT
outcome/NN
of/IN
further/JJ
research/NN
./.
Only/RB
one/CD
thing/NN
is/VBZ
certain/JJ
here/RB
:/:
Pysllium/NN
is/VBZ
likely/JJ
to/TO
remain/VB
solely/RB
an/DT
export/JJ
item/NN
from/IN
Sidhpur/NNP
for/IN
a/DT
long/JJ
time/NN
./.
Local/JJ
farmers/NNS
say/VBP
it/PRP
is/VBZ
as/RB
good/JJ
a/DT
cash/NN
crop/NN
as/IN
mustard/NN
or/CC
fenugreek/NN
,/,
a/DT
legume/NN
./.
But/CC
they/PRP
have/VBP
no/DT
desire/NN
to/TO
eat/VB
a/DT
bowl/NN
of/IN
psyllium/NN
each/DT
morning/NN
,/,
and/CC
,/,
perhaps/RB
,/,
little/JJ
need/NN
:/:
lean/JJ
,/,
frugal/JJ
vegetarians/NNS
,/,
the/DT
farmers/NNS
are/VBP
innocents/NNS
in/IN
the/DT
clogged/JJ
,/,
treacherous/JJ
world/NN
of/IN
cholesterol/NN
./.
Psyllium/NN
is/VBZ
an/DT
annual/JJ
herb/NN
,/,
Plantago/NN
ovata/NN
,/,
that/WDT
has/VBZ
been/VBN
used/VBN
for/IN
centuries/NNS
by/IN
folk/NN
doctors/NNS
here/RB
,/,
mainly/RB
as/IN
a/DT
laxative/NN
and/CC
anti-diarrheal/JJ
./.
As/IN
such/JJ
,/,
the/DT
soluble/JJ
fiber/NN
has/VBZ
an/DT
almost/RB
fanatic/JJ
following/NN
in/IN
northern/JJ
India/NNP
./.
``/``
I/PRP
can/MD
assure/VB
you/PRP
,/,
''/''
attests/VBZ
a/DT
25-year-old/JJ
lawyer/NN
in/IN
New/NNP
Delhi/NNP
,/,
with/IN
a/DT
meaningfully/RB
raised/VBN
eyebrow/NN
,/,
``/``
from/IN
personal/JJ
experience/NN
,/,
it/PRP
works/VBZ
./.
''/''
A/DT
prominent/JJ
businessman/NN
in/IN
Bombay/NNP
gives/VBZ
a/DT
similar/JJ
testimonial/NN
:/:
``/``
I/PRP
have/VBP
been/VBN
taking/VBG
it/PRP
daily/RB
since/IN
1961/CD
./.
''/''
Folk/NN
doctors/NNS
also/RB
prescribe/VBP
it/PRP
for/IN
kidney/NN
,/,
bladder/NN
and/CC
urethra/NN
problems/NNS
,/,
duodenal/JJ
ulcers/NNS
and/CC
hemorrhoids/NNS
./.
Some/DT
apply/VBP
it/PRP
to/TO
gouty/JJ
joints/NNS
./.
The/DT
plant/NN
has/VBZ
a/DT
hairy/JJ
stem/NN
that/WDT
produces/VBZ
flowers/NNS
and/CC
diminutive/JJ
seeds/NNS
./.
It/PRP
is/VBZ
the/DT
seed/NN
's/POS
colorlessness/NN
and/CC
size/NN
--/:
1,000/CD
of/IN
them/PRP
weigh/VBP
only/RB
1.5/CD
grams/NNS
,/,
or/CC
about/IN
as/RB
much/JJ
as/IN
two/CD
paper/NN
clips/NNS
--/:
that/WDT
explain/VBP
the/DT
historical/JJ
allusions/NNS
to/TO
fleas/NNS
./.
The/DT
transluscent/JJ
husk/NN
of/IN
the/DT
seed/NN
is/VBZ
removed/VBN
,/,
sifted/VBN
and/CC
crushed/VBN
;/:
the/DT
seed/NN
itself/PRP
is/VBZ
fed/VBN
to/TO
animals/NNS
./.
Some/DT
90/CD
%/NN
of/IN
the/DT
crop/NN
,/,
which/WDT
was/VBD
worth/JJ
$/$
26/CD
million/CD
last/JJ
year/NN
,/,
is/VBZ
exported/VBN
./.
For/IN
decades/NNS
,/,
psyllium/NN
husk/NN
has/VBZ
been/VBN
the/DT
main/JJ
ingredient/NN
in/IN
such/JJ
laxatives/NNS
as/IN
Procter/NNP
&/CC
Gamble/NNP
Co./NNP
's/POS
Metamucil/NNP
,/,
the/DT
top-selling/JJ
brand/NN
in/IN
the/DT
U.S./NNP
,/,
and/CC
Ciba-Geigy/NNP
Corp./NNP
's/POS
Fiberall/NNP
./.
But/CC
some/DT
time/NN
ago/IN
,/,
researchers/NNS
discovered/VBD
that/IN
soluble/JJ
fibers/NNS
also/RB
lower/VBP
cholesterol/NN
levels/NNS
in/IN
the/DT
blood/NN
./.
Cincinnati-based/JJ
P&G/NNP
took/VBD
an/DT
interest/NN
;/:
it/PRP
ordered/VBD
two/CD
studies/NNS
on/IN
psyllium/NN
and/CC
cholesterol/NN
./.
One/CD
of/IN
the/DT
studies/NNS
,/,
done/VBN
at/IN
the/DT
University/NNP
of/IN
Minnesota/NNP
,/,
tested/VBD
75/CD
people/NNS
with/IN
raised/VBN
cholesterol/NN
levels/NNS
./.
After/IN
16/CD
weeks/NNS
,/,
the/DT
group/NN
that/WDT
took/VBD
three/CD
daily/JJ
teaspoons/NNS
of/IN
Metamucil/NNP
saw/VBD
a/DT
significant/JJ
dip/NN
in/IN
their/PRP$
general/JJ
cholesterol/NN
levels/NNS
,/,
and/CC
an/DT
even/RB
larger/JJR
reduction/NN
in/IN
levels/NNS
of/IN
low-density/NN
lipoproteins/NNS
,/,
the/DT
so-called/JJ
bad/JJ
cholesterol/NN
./.
In/IN
late/JJ
1987/CD
,/,
P&G/NNP
asked/VBD
the/DT
FDA/NNP
for/IN
approval/NN
to/TO
market/VB
Metamucil/NNP
as/IN
the/DT
first/JJ
non-prescription/JJ
,/,
cholesterol-lowering/JJ
product/NN
in/IN
the/DT
In/IN
April/NNP
,/,
the/DT
psyllium/NN
bandwagon/NN
got/VBD
more/RBR
crowded/VBN
./.
General/NNP
Mills/NNPS
Inc./NNP
,/,
the/DT
food/NN
giant/NN
,/,
launched/VBD
a/DT
breakfast/NN
cereal/NN
called/VBN
Benefit/NNP
,/,
containing/VBG
psyllium/NN
,/,
oat/NN
,/,
wheat/NN
and/CC
beet/NN
bran/NN
;/:
the/DT
words/NNS
,/,
``/``
reduce/VB
cholesterol/NN
''/''
were/VBD
prominently/RB
displayed/VBN
on/IN
its/PRP$
package/NN
./.
In/IN
September/NNP
,/,
Kellogg/NNP
Co./NNP
launched/VBD
a/DT
competing/VBG
psyllium-fortified/JJ
cereal/NN
called/VBN
Heartwise/NNP
./.
Suddenly/RB
,/,
on/IN
television/NN
,/,
in/IN
advertisements/NNS
and/CC
on/IN
their/PRP$
cereal/NN
boxes/NNS
,/,
Americans/NNPS
were/VBD
inundated/VBN
with/IN
news/NN
about/IN
the/DT
obscure/JJ
seed/NN
./.
The/DT
flood/NN
of/IN
claims/NNS
and/CC
counter-claims/NNS
worried/VBD
consumers/NNS
and/CC
actually/RB
hurt/VBD
sales/NNS
of/IN
the/DT
new/JJ
cereals/NNS
./.
This/DT
month/NN
,/,
the/DT
Food/NNP
and/CC
Drug/NNP
Administration/NNP
expressed/VBD
concern/NN
that/IN
Americans/NNPS
might/MD
someday/RB
,/,
in/IN
various/JJ
forms/NNS
,/,
ingest/VB
too/RB
much/JJ
psyllium/NN
./.
Currently/RB
,/,
there/EX
is/VBZ
a/DT
lull/NN
in/IN
the/DT
psyllium/NN
war/NN
./.
The/DT
FDA/NNP
has/VBZ
asked/VBN
Kellogg/NNP
and/CC
General/NNP
Mills/NNPS
to/TO
show/VB
research/NN
that/IN
their/PRP$
cereals/NNS
are/VBP
safe/JJ
./.
It/PRP
also/RB
ordered/VBD
P&G/NNP
to/TO
produce/VB
more/JJR
studies/NNS
to/TO
buttress/VB
its/PRP$
claims/NNS
that/IN
Metamucil/NNP
can/MD
lower/VB
cholesterol/NN
./.
But/CC
the/DT
agency/NN
has/VBZ
n't/RB
yanked/VBN
psyllium/NN
off/IN
store/NN
shelves/NNS
./.
If/IN
the/DT
FDA/NNP
approves/VBZ
the/DT
new/JJ
uses/NNS
of/IN
psyllium/NN
,/,
other/JJ
companies/NNS
are/VBP
expected/VBN
to/TO
rush/VB
to/TO
market/NN
with/IN
psyllium/NN
products/NNS
./.
``/``
It/PRP
's/VBZ
going/VBG
to/TO
be/VB
a/DT
sensational/JJ
thing/NN
,/,
''/''
says/VBZ
Mr./NNP
Krishnamurthy/NNP
of/IN
P&G/NNP
in/IN
Bombay/NNP
./.
Says/VBZ
psyllium/NN
exporter/NN
Mr./NNP
Patel/NNP
:/:
``/``
I/PRP
just/RB
got/VBD
back/RB
yesterday/NN
from/IN
the/DT
U.S/NNP
./.
In/IN
the/DT
newspapers/NNS
,/,
on/IN
the/DT
radio/NN
and/CC
TV/NN
,/,
psyllium/NN
is/VBZ
everywhere/RB
./.
''/''
But/CC
the/DT
news/NN
of/IN
the/DT
boom/NN
has/VBZ
yet/RB
to/TO
trickle/VB
down/IN
to/TO
the/DT
farmers/NNS
./.
They/PRP
only/RB
know/VBP
of/IN
one/CD
use/NN
for/IN
the/DT
crop/NN
,/,
as/IN
a/DT
laxative/NN
,/,
and/CC
with/IN
psyllium/NN
prices/NNS
currently/RB
languishing/VBG
in/IN
the/DT
wake/NN
of/IN
a/DT
bumper/NN
crop/NN
,/,
they/PRP
think/VBP
of/IN
the/DT
seed/NN
as/IN
a/DT
marginal/JJ
crop/NN
,/,
something/NN
to/TO
grow/VB
between/IN
summer/NN
wheat/NN
crops/NNS
./.
``/``
Psyllium/NN
's/VBZ
not/RB
a/DT
good/JJ
crop/NN
,/,
''/''
complains/VBZ
Sooraji/NNP
Jath/NNP
,/,
a/DT
26-year-old/JJ
farmer/NN
from/IN
the/DT
village/NN
of/IN
Lakshmipura/NNP
./.
``/``
You/PRP
get/VBP
a/DT
rain/NN
at/IN
the/DT
wrong/JJ
time/NN
and/CC
the/DT
crop/NN
is/VBZ
ruined/VBN
./.
''/''
Even/RB
at/IN
the/DT
Basic/NNP
Chemicals/NNPS
,/,
Pharmaceuticals/NNPS
and/CC
Cosmetics/NNPS
Export/NNP
Promotion/NNP
Council/NNP
,/,
the/DT
government/NN
agency/NN
that/WDT
promotes/VBZ
the/DT
seed/NN
,/,
the/DT
psyllium/NN
boom/NN
is/VBZ
distant/JJ
thunder/NN
./.
The/DT
staff/NN
brags/VBZ
about/IN
psyllium/NN
's/POS
hefty/JJ
contribution/NN
to/TO
American/JJ
regularity/NN
,/,
without/IN
quite/RB
grasping/VBG
the/DT
implications/NNS
of/IN
the/DT
research/NN
on/IN
cholesterol/NN
./.
The/DT
council/NN
's/POS
annual/JJ
report/NN
has/VBZ
psyllium/NN
on/IN
its/PRP$
last/JJ
page/NN
,/,
lumped/VBN
with/IN
such/JJ
unglamorous/JJ
export/NN
items/NNS
as/IN
sarsaparilla/NN
and/CC
``/``
Nux/NN
vomica/NN
,/,
''/''
a/DT
plant/NN
that/WDT
induces/VBZ
vomiting/VBG
./.
In/IN
one/CD
way/NN
,/,
the/DT
psyllium/NN
middlemen/NNS
--/:
the/DT
buyers/NNS
and/CC
exporters/NNS
--/:
are/VBP
glad/JJ
to/TO
keep/VB
news/NN
of/IN
the/DT
boom/NN
to/TO
themselves/PRP
./.
They/PRP
want/VBP
psyllium/NN
prices/NNS
low/JJ
for/IN
their/PRP$
purchases/NNS
next/IN
year/NN
./.
But/CC
there/EX
's/VBZ
a/DT
catch/NN
./.
Sidhpur/NNP
and/CC
adjacent/JJ
districts/NNS
are/VBP
the/DT
only/JJ
places/NNS
in/IN
the/DT
world/NN
where/WRB
psyllium/NN
is/VBZ
grown/VBN
in/IN
large/JJ
quantities/NNS
./.
This/DT
is/VBZ
partly/RB
due/JJ
to/TO
the/DT
particular/JJ
demands/NNS
of/IN
the/DT
crop/NN
./.
Psyllium/NN
needs/VBZ
sandy/JJ
soil/NN
,/,
dew/NN
during/IN
the/DT
first/JJ
few/JJ
weeks/NNS
,/,
and/CC
then/RB
total/JJ
dryness/NN
when/WRB
its/PRP$
seeds/NNS
are/VBP
maturing/VBG
./.
Small/JJ
crops/NNS
are/VBP
grown/VBN
in/IN
Pakistan/NNP
,/,
France/NNP
,/,
Spain/NNP
,/,
Italy/NNP
,/,
Belgium/NNP
and/CC
Brazil/NNP
,/,
but/CC
their/PRP$
quality/NN
ca/MD
n't/RB
compare/VB
to/TO
that/DT
of/IN
Indian/JJ
psyllium/NN
./.
Big/JJ
buyers/NNS
like/IN
Procter/NNP
&/CC
Gamble/NNP
say/VBP
there/EX
are/VBP
other/JJ
spots/NNS
on/IN
the/DT
globe/NN
,/,
and/CC
in/IN
India/NNP
,/,
where/WRB
the/DT
seed/NN
could/MD
be/VB
grown/VBN
./.
``/``
It/PRP
's/VBZ
not/RB
a/DT
crop/NN
that/WDT
ca/MD
n't/RB
be/VB
doubled/VBN
or/CC
tripled/VBN
,/,
''/''
says/VBZ
Mr./NNP
Krishnamurthy/NNP
./.
But/CC
no/DT
one/NN
has/VBZ
made/VBN
a/DT
serious/JJ
effort/NN
to/TO
transplant/VB
the/DT
crop/NN
./.
In/IN
Sidhpur/NNP
,/,
it/PRP
is/VBZ
almost/RB
time/NN
to/TO
sow/VB
this/DT
year/NN
's/POS
crop/NN
./.
Many/JJ
farmers/NNS
,/,
too/RB
removed/VBN
to/TO
glean/VB
psyllium/NN
's/POS
new/JJ
sparkle/NN
in/IN
the/DT
West/NN
,/,
have/VBP
decided/VBN
to/TO
plant/VB
mustard/NN
,/,
fennel/NN
,/,
cumin/NN
,/,
fenugreek/NN
or/CC
castor-oil/NN
seeds/NNS
./.
Mr./NNP
Jath/NNP
is/VBZ
thinking/VBG
of/IN
passing/VBG
up/IN
psyllium/NN
altogether/RB
this/DT
year/NN
in/IN
favor/NN
of/IN
a/DT
crop/NN
with/IN
a/DT
future/NN
such/JJ
as/IN
cumin/NN
or/CC
fennel/NN
./.
``/``
Maybe/RB
I/PRP
'll/MD
plant/VB
castor-oil/NN
seeds/NNS
./.
''/''
His/PRP$
brother/NN
,/,
Parkhaji/NNP
,/,
whose/WP$
head/NN
is/VBZ
swathed/VBN
in/IN
a/DT
gorgeous/JJ
crimson/JJ
turban/NN
,/,
nods/VBZ
vigorous/JJ
assent/NN
./.
So/RB
when/WRB
next/JJ
year/NN
's/POS
psyllium/NN
crop/NN
is/VBZ
harvested/VBN
in/IN
March/NNP
,/,
it/PRP
may/MD
be/VB
smaller/JJR
than/IN
the/DT
16,000/CD
metric/JJ
tons/NNS
of/IN
the/DT
past/JJ
few/JJ
years/NNS
--/:
right/RB
at/IN
the/DT
crest/NN
of/IN
the/DT
psyllium/NN
boom/NN
./.
And/CC
the/DT
world/NN
could/MD
experience/VB
its/PRP$
first/JJ
psyllium/NN
shortage/NN
./.
Kellwood/NNP
Co./NNP
said/VBD
it/PRP
completed/VBD
a/DT
previously/RB
announced/VBN
acquisition/NN
of/IN
Crowntuft/NNP
Manufacturing/NNP
Corp./NNP
,/,
a/DT
New/NNP
York-based/JJ
maker/NN
of/IN
chenille/NN
robes/NNS
and/CC
lounge/NN
wear/NN
./.
The/DT
apparel/NN
maker/NN
would/MD
n't/RB
disclose/VB
terms/NNS
of/IN
the/DT
agreement/NN
./.
Kellwood/NNP
said/VBD
Gabriel/NNP
Hakim/NNP
Sr./NNP
,/,
president/NN
of/IN
Crowntuft/NNP
,/,
will/MD
continue/VB
to/TO
head/VB
Crowntuft/NNP
's/POS
management/NN
group/NN
./.
A/DT
seat/NN
on/IN
the/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
was/VBD
sold/VBN
for/IN
$/$
416,000/CD
,/,
down/RB
$/$
36,000/CD
from/IN
the/DT
previous/JJ
sale/NN
Oct/NNP
./.
Seats/NNS
currently/RB
are/VBP
quoted/VBN
at/IN
$/$
410,000/CD
bid/NN
,/,
$/$
425,000/CD
asked/VBN
./.
The/DT
record/NN
price/NN
for/IN
a/DT
full/JJ
membership/NN
on/IN
the/DT
exchange/NN
is/VBZ
$/$
550,000/CD
,/,
set/VBN
March/NNP
9/CD
,/,
1989/CD
./.
Small/JJ
businesses/NNS
say/VBP
a/DT
recent/JJ
trend/NN
is/VBZ
like/IN
a/DT
dream/NN
come/VBN
true/JJ
:/:
more-affordable/JJ
rates/NNS
for/IN
employee-health/NN
insurance/NN
,/,
initially/RB
at/IN
least/JJS
./.
But/CC
then/RB
they/PRP
wake/VBP
up/IN
to/TO
a/DT
nightmare/NN
./.
The/DT
reasonable/JJ
first-year/JJ
rates/NNS
can/MD
be/VB
followed/VBN
by/IN
increases/NNS
of/IN
60/CD
%/NN
or/CC
more/JJR
if/IN
a/DT
covered/VBN
employee/NN
files/VBZ
a/DT
major/JJ
claim/NN
,/,
they/PRP
complain/VBP
./.
Insurance/NN
premiums/NNS
for/IN
one/CD
small/JJ
Maryland/NNP
concern/NN
went/VBD
up/RB
130/CD
%/NN
in/IN
less/JJR
than/IN
two/CD
years/NNS
,/,
the/DT
last/JJ
increase/NN
coming/VBG
after/IN
one/CD
of/IN
its/PRP$
three/CD
workers/NNS
developed/VBD
a/DT
herniated/VBN
disk/NN
./.
``/``
There/EX
's/VBZ
a/DT
distinct/JJ
possibility/NN
that/IN
I/PRP
may/MD
lose/VB
my/PRP$
job/NN
over/IN
this/DT
,/,
''/''
the/DT
employee/NN
,/,
Karen/NNP
Allen/NNP
,/,
of/IN
Floor/NNP
Covering/NNP
Resources/NNPS
,/,
Kensington/NNP
,/,
Md./NNP
,/,
recently/RB
told/VBD
a/DT
congressional/JJ
hearing/NN
./.
She/PRP
said/VBD
her/PRP$
employer/NN
ca/MD
n't/RB
afford/VB
the/DT
rate/NN
increases/NNS
,/,
and/CC
she/PRP
fears/VBZ
she/PRP
wo/MD
n't/RB
find/VB
another/DT
job/NN
with/IN
a/DT
benefit/NN
plan/NN
covering/VBG
her/PRP$
ailment/NN
./.
For/IN
employee/NN
and/CC
employer/NN
alike/RB
,/,
the/DT
worry/NN
is/VBZ
widespread/JJ
./.
Surveys/NNS
repeatedly/RB
show/VBP
that/IN
small-business/NN
owners/NNS
rank/VBP
the/DT
availability/NN
and/CC
rising/VBG
cost/NN
of/IN
health/NN
insurance/NN
as/IN
one/CD
of/IN
their/PRP$
biggest/JJS
concerns/NNS
./.
The/DT
House/NNP
Energy/NNP
and/CC
Commerce/NNP
Committee/NNP
's/POS
health/NN
subcommittee/NN
,/,
headed/VBN
by/IN
Democratic/NNP
Rep./NNP
Henry/NNP
Waxman/NNP
of/IN
California/NNP
,/,
is/VBZ
looking/VBG
into/IN
complaints/NNS
that/IN
small/JJ
businesses/NNS
not/RB
only/RB
ca/MD
n't/RB
keep/VB
reasonably/RB
priced/VBN
employee-health/NN
insurance/NN
if/IN
claims/NNS
are/VBP
filed/VBN
,/,
but/CC
often/RB
ca/MD
n't/RB
get/VB
coverage/NN
at/IN
all/DT
if/IN
a/DT
worker/NN
is/VBZ
termed/VBN
medically/RB
uninsurable/JJ
./.
``/``
I/PRP
have/VBP
an/DT
old-fashioned/JJ
name/NN
for/IN
people/NNS
in/IN
that/DT
position/NN
:/:
sick/JJ
people/NNS
who/WP
need/VBP
health/NN
insurance/NN
,/,
''/''
Rep./NNP
Waxman/NNP
says/VBZ
./.
``/``
What/WP
we/PRP
're/VBP
seeing/VBG
now/RB
makes/VBZ
a/DT
mockery/NN
of/IN
the/DT
idea/NN
of/IN
insurance/NN
:/:
collect/VB
premiums/NNS
from/IN
the/DT
healthy/JJ
,/,
dump/VB
the/DT
sick/JJ
and/CC
let/VB
them/PRP
pay/VB
their/PRP$
own/JJ
bills/NNS
./.
''/''
Some/DT
lawmakers/NNS
may/MD
seek/VB
legislation/NN
to/TO
limit/VB
overly/RB
restrictive/JJ
insurance/NN
policies/NNS
./.
The/DT
concern/NN
grows/VBZ
out/IN
of/IN
increased/VBN
efforts/NNS
by/IN
the/DT
insurers/NNS
to/TO
woo/VB
the/DT
small-business/NN
market/NN
./.
As/IN
larger/JJR
companies/NNS
increasingly/RB
self-insure/VBP
,/,
or/CC
use/VBP
reserves/NNS
to/TO
pay/VB
their/PRP$
own/JJ
workers/NNS
'/POS
medical/JJ
bills/NNS
,/,
the/DT
insurance/NN
industry/NN
has/VBZ
turned/VBN
to/TO
the/DT
small-employer/NN
market/NN
that/WDT
was/VBD
once/RB
a/DT
backwater/NN
for/IN
them/PRP
./.
``/``
Insurance/NN
companies/NNS
will/MD
offer/VB
a/DT
good/JJ
rate/NN
if/IN
no/DT
one/NN
is/VBZ
sick/JJ
,/,
but/CC
it/PRP
's/VBZ
a/DT
roll/NN
of/IN
the/DT
dice/NNS
,/,
''/''
says/VBZ
Rosemary/NNP
Heinhold/NNP
of/IN
the/DT
Small/NNP
Business/NNP
Service/NNP
Bureau/NNP
,/,
a/DT
group/NN
representing/VBG
35,000/CD
small/JJ
businesses/NNS
nationwide/JJ
./.
``/``
One/CD
case/NN
of/IN
cancer/NN
or/CC
a/DT
high-risk/JJ
pregnancy/NN
with/IN
a/DT
sick/JJ
infant/NN
,/,
and/CC
rates/NNS
go/VBP
up/RB
40/CD
%/NN
to/TO
60/CD
%/NN
./.
Small-business/NN
people/NNS
end/VBP
up/IN
paying/VBG
insurance/NN
premiums/NNS
worth/IN
two/CD
to/TO
three/CD
times/NNS
the/DT
cost/NN
of/IN
one/CD
illness/NN
./.
''/''
In/IN
addition/NN
,/,
the/DT
group/NN
says/VBZ
some/DT
of/IN
its/PRP$
member/NN
companies/NNS
have/VBP
been/VBN
denied/VBN
insurance/NN
because/IN
individual/JJ
workers/NNS
had/VBD
medical/JJ
problems/NNS
that/WDT
ranged/VBD
from/IN
a/DT
mild/JJ
cardiac/JJ
condition/NN
to/TO
psychological/JJ
counseling/NN
after/IN
a/DT
divorce/NN
,/,
hemorrhoids/NNS
and/CC
overweight/NN
./.
The/DT
Health/NNP
Insurance/NNP
Association/NNP
of/IN
America/NNP
,/,
an/DT
insurers/NNS
'/POS
trade/NN
group/NN
,/,
acknowledges/VBZ
that/IN
stiff/JJ
competition/NN
among/IN
its/PRP$
members/NNS
to/TO
insure/VB
businesses/NNS
likely/JJ
to/TO
be/VB
good/JJ
risks/NNS
during/IN
the/DT
first/JJ
year/NN
of/IN
coverage/NN
has/VBZ
aggravated/VBN
the/DT
problem/NN
in/IN
the/DT
small-business/NN
market/NN
./.
But/CC
it/PRP
says/VBZ
that/IN
rapid/JJ
rate/NN
increases/NNS
are/VBP
directly/RB
tied/VBN
to/TO
the/DT
soaring/VBG
cost/NN
of/IN
health/NN
care/NN
./.
Some/DT
business/NN
analysts/NNS
blame/VBP
the/DT
problem/NN
on/IN
tough/JJ
competition/NN
in/IN
the/DT
insurance/NN
market/NN
./.
They/PRP
say/VBP
insurance/NN
companies/NNS
use/VBP
policies/NNS
aimed/VBN
at/IN
excluding/VBG
bad/JJ
risks/NNS
because/IN
their/PRP$
competitors/NNS
do/VBP
./.
But/CC
the/DT
general/JJ
practice/NN
makes/VBZ
it/PRP
more/RBR
difficult/JJ
to/TO
combine/VB
small/JJ
groups/NNS
of/IN
people/NNS
into/IN
larger/JJR
groups/NNS
,/,
thus/RB
spreading/VBG
the/DT
risk/NN
over/IN
a/DT
larger/JJR
base/NN
of/IN
premiums/NNS
./.
``/``
I/PRP
'm/VBP
not/RB
accusing/VBG
insurers/NNS
of/IN
dereliction/NN
of/IN
duty/NN
,/,
''/''
Robert/NNP
Patricelli/NNP
of/IN
the/DT
U.S./NNP
Chamber/NNP
of/IN
Commerce/NNP
told/VBD
Mr./NNP
Waxman/NNP
's/POS
panel/NN
./.
``/``
You/PRP
ca/MD
n't/RB
ask/VB
one/CD
carrier/NN
to/TO
underwrite/VB
on/IN
social/JJ
grounds/NNS
when/WRB
that/WDT
might/MD
destroy/VB
it/PRP
in/IN
the/DT
marketplace/NN
./.
''/''
Rep./NNP
Waxman/NNP
and/CC
Democratic/NNP
Sen./NNP
Edward/NNP
Kennedy/NNP
of/IN
Massachusetts/NNP
have/VBP
proposed/VBN
regulation/NN
to/TO
deal/VB
with/IN
the/DT
problem/NN
./.
The/DT
proposal/NN
is/VBZ
just/RB
part/NN
of/IN
legislation/NN
that/WDT
would/MD
require/VB
businesses/NNS
to/TO
provide/VB
health/NN
benefits/NNS
,/,
an/DT
idea/NN
that/WDT
is/VBZ
strongly/RB
opposed/VBN
by/IN
small/JJ
business/NN
who/WP
say/VBP
it/PRP
would/MD
just/RB
compound/VB
the/DT
insurance-cost/JJ
problems/NNS
./.
But/CC
small-business/NN
lobbyists/NNS
say/VBP
they/PRP
support/VBP
the/DT
idea/NN
,/,
included/VBN
in/IN
the/DT
Kennedy-Waxman/NNP
bill/NN
,/,
of/IN
new/JJ
laws/NNS
or/CC
regulations/NNS
requiring/VBG
greater/JJR
use/NN
of/IN
community/NN
rating/NN
,/,
which/WDT
pegs/VBZ
rates/NNS
to/TO
the/DT
use/NN
of/IN
health/NN
care/NN
by/IN
a/DT
community/NN
or/CC
other/JJ
large/JJ
group/NN
,/,
and/CC
is/VBZ
designed/VBN
to/TO
prevent/VB
insurance/NN
companies/NNS
from/IN
taking/VBG
only/JJ
low-risk/JJ
small/JJ
companies/NNS
as/IN
clients/NNS
./.
But/CC
first/JJ
on/IN
the/DT
list/NN
of/IN
priorities/NNS
,/,
says/VBZ
the/DT
National/NNP
Federation/NNP
of/IN
Independent/NNP
Business/NNP
,/,
is/VBZ
to/TO
prohibit/VB
state/NN
laws/NNS
requiring/VBG
the/DT
inclusion/NN
of/IN
specialty/NN
items/NNS
,/,
such/JJ
as/IN
psychiatric/JJ
care/NN
,/,
in/IN
basic/JJ
health/NN
plans/NNS
./.
Such/JJ
requirements/NNS
,/,
they/PRP
argue/VBP
,/,
make/VBP
it/PRP
difficult/JJ
to/TO
provide/VB
a/DT
basic/JJ
,/,
low-cost/JJ
health-benefits/JJ
package/NN
./.
``/``
Before/IN
the/DT
state/NN
of/IN
Wisconsin/NNP
mandated/VBD
that/IN
mental-health/NN
care/NN
be/VB
covered/VBN
,/,
there/EX
were/VBD
only/RB
70/CD
mental-health/NN
clinics/NNS
in/IN
the/DT
state/NN
;/:
now/RB
there/EX
are/VBP
400/CD
,/,
''/''
says/VBZ
Carolyn/NNP
Miller/NNP
,/,
an/DT
NFIB/NNP
lobbyist/NN
./.
She/PRP
contends/VBZ
that/IN
similar/JJ
mandates/NNS
have/VBP
driven/VBN
up/IN
insurance/NN
costs/NNS
20/CD
%/NN
in/IN
Maryland/NNP
and/CC
30/CD
%/NN
in/IN
California/NNP
./.
The/DT
insurance-industry/NN
association/NN
also/RB
strongly/RB
disagrees/VBZ
with/IN
the/DT
proposed/VBN
community/NN
rating/NN
,/,
which/WDT
``/``
does/VBZ
n't/RB
save/VB
one/CD
dollar/NN
,/,
''/''
argues/VBZ
James/NNP
Dorsch/NNP
,/,
HIAA/NNP
's/POS
Washington/NNP
counsel/NN
./.
``/``
It/PRP
just/RB
makes/VBZ
healthy/JJ
businesses/NNS
subsidize/VB
unhealthy/JJ
ones/NNS
and/CC
gives/VBZ
each/DT
employer/NN
less/JJR
incentive/NN
to/TO
keep/VB
his/PRP$
workers/NNS
healthy/JJ
./.
''/''
Mr./NNP
Dorsch/NNP
says/VBZ
the/DT
HIAA/NNP
is/VBZ
working/VBG
on/IN
a/DT
proposal/NN
to/TO
establish/VB
a/DT
privately/RB
funded/VBN
reinsurance/NN
mechanism/NN
to/TO
help/VB
cover/VB
small/JJ
groups/NNS
that/WDT
ca/MD
n't/RB
get/VB
insurance/NN
without/IN
excluding/VBG
certain/JJ
employees/NNS
./.
The/DT
complexities/NNS
of/IN
the/DT
insurance/NN
problem/NN
make/VBP
the/DT
outcome/NN
difficult/JJ
to/TO
predict/VB
./.
But/CC
to/TO
Ms./NNP
Allen/NNP
,/,
the/DT
employee/NN
whose/WP$
back/NN
problem/NN
triggered/VBD
a/DT
huge/JJ
insurance-rate/JJ
increase/NN
,/,
the/DT
issue/NN
was/VBD
simple/JJ
./.
``/``
What/WP
good/NN
is/VBZ
having/VBG
health/NN
insurance/NN
,/,
''/''
she/PRP
asked/VBD
,/,
``/``
when/WRB
it/PRP
's/VBZ
so/RB
expensive/JJ
that/IN
it/PRP
becomes/VBZ
impossible/JJ
to/TO
keep/VB
after/IN
only/RB
one/CD
major/JJ
claim/NN
?/.
''/''
The/DT
Belgian/JJ
consumer/NN
price/NN
index/NN
rose/VBD
a/DT
provisional/JJ
0.1/CD
%/NN
in/IN
October/NNP
from/IN
the/DT
previous/JJ
month/NN
and/CC
was/VBD
up/RB
3.64/CD
%/NN
from/IN
October/NNP
1988/CD
,/,
the/DT
Ministry/NNP
of/IN
Economic/NNP
Affairs/NNPS
said/VBD
./.
The/DT
index/NN
,/,
which/WDT
uses/VBZ
a/DT
base/NN
of/IN
1981/CD
as/IN
100/CD
,/,
was/VBD
calculated/VBN
at/IN
140.91/CD
points/NNS
in/IN
October/NNP
,/,
from/IN
140.74/CD
in/IN
September/NNP
./.
Annual/JJ
inflation/NN
rose/VBD
to/TO
3.64/CD
%/NN
in/IN
October/NNP
from/IN
3.55/CD
%/NN
in/IN
September/NNP
./.
Belgium/NNP
's/POS
inflation/NN
has/VBZ
been/VBN
rising/VBG
steadily/RB
for/IN
the/DT
past/JJ
year/NN
,/,
but/CC
the/DT
ministry/NN
said/VBD
the/DT
latest/JJS
rise/NN
is/VBZ
slower/JJR
than/IN
gains/NNS
in/IN
September/NNP
and/CC
August/NNP
./.
Nashua/NNP
Corp./NNP
,/,
rumored/VBD
a/DT
potential/JJ
takeover/NN
target/NN
for/IN
six/CD
months/NNS
,/,
said/VBD
that/IN
a/DT
Dutch/NNP
company/NN
has/VBZ
sought/VBN
U.S./NNP
approval/NN
to/TO
buy/VB
up/IN
to/TO
25/CD
%/NN
of/IN
Nashua/NNP
's/POS
shares/NNS
./.
Nashua/NNP
immediately/RB
responded/VBD
by/IN
strengthening/VBG
a/DT
poison-pill/JJ
plan/NN
and/CC
saying/VBG
it/PRP
will/MD
buy/VB
back/RB
up/IN
to/TO
one/CD
million/CD
of/IN
its/PRP$
shares/NNS
,/,
or/CC
10.4/CD
%/NN
of/IN
the/DT
9.6/CD
million/CD
outstanding/JJ
./.
Nashua/NNP
,/,
whose/WP$
major/JJ
business/NN
is/VBZ
selling/VBG
copiers/NNS
,/,
facsimile/JJ
machines/NNS
and/CC
related/VBN
supplies/NNS
,/,
said/VBD
Reiss/NNP
&/CC
Co/NNP
./.
B.V./NNP
of/IN
the/DT
Netherlands/NNP
filed/VBD
a/DT
request/NN
with/IN
the/DT
Federal/NNP
Trade/NNP
Commission/NNP
under/IN
the/DT
Hart-Scott-Rodino/NNP
Act/NNP
for/IN
permission/NN
to/TO
buy/VB
more/JJR
than/IN
$/$
15/CD
million/CD
of/IN
Nashua/NNP
's/POS
stock/NN
but/CC
less/JJR
than/IN
25/CD
%/NN
./.
Previously/RB
,/,
an/DT
affiliate/NN
of/IN
Unicorp/NNP
Canada/NNP
disclosed/VBD
a/DT
stake/NN
of/IN
less/JJR
than/IN
5/CD
%/NN
in/IN
Nashua/NNP
,/,
according/VBG
to/TO
Daniel/NNP
M./NNP
Junius/NNP
,/,
Nashua/NNP
's/POS
treasurer/NN
./.
Nashua/NNP
's/POS
stock/NN
has/VBZ
fluctuated/VBN
sharply/RB
on/IN
takeover/NN
speculation/NN
,/,
rising/VBG
to/TO
a/DT
high/JJ
for/IN
the/DT
year/NN
of/IN
$/$
42.875/CD
a/DT
share/NN
in/IN
June/NNP
from/IN
$/$
29.75/CD
in/IN
March/NNP
./.
But/CC
the/DT
company/NN
has/VBZ
had/VBN
weak/JJ
results/NNS
so/RB
far/RB
this/DT
year/NN
,/,
with/IN
earnings/NNS
declining/VBG
43/CD
%/NN
to/TO
$/$
13.7/CD
million/CD
,/,
or/CC
$/$
1.43/CD
a/DT
share/NN
,/,
on/IN
a/DT
4/CD
%/NN
decline/NN
in/IN
revenue/NN
to/TO
$/$
713.5/CD
million/CD
through/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
the/DT
year/NN
./.
Its/PRP$
stock/NN
has/VBZ
slumped/VBN
recently/RB
,/,
closing/VBG
unchanged/JJ
Friday/NNP
at/IN
$/$
29/CD
a/DT
share/NN
in/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
;/:
at/IN
that/DT
price/NN
,/,
the/DT
company/NN
has/VBZ
a/DT
market/NN
value/NN
of/IN
about/IN
$/$
278.4/CD
million/CD
./.
Nashua/NNP
announced/VBD
the/DT
Reiss/NNP
request/NN
after/IN
the/DT
market/NN
closed/VBD
./.
Mr./NNP
Junius/NNP
said/VBD
Nashua/NNP
's/POS
``/``
intention/NN
is/VBZ
to/TO
remain/VB
an/DT
independent/JJ
public/JJ
company/NN
./.
''/''
The/DT
company/NN
said/VBD
it/PRP
amended/VBD
its/PRP$
shareholder/NN
rights/NNS
plan/NN
by/IN
reducing/VBG
to/TO
10/CD
%/NN
from/IN
20/CD
%/NN
the/DT
level/NN
of/IN
ownership/NN
by/IN
an/DT
outsider/NN
that/WDT
would/MD
trigger/VB
the/DT
issuance/NN
to/TO
other/JJ
holders/NNS
of/IN
rights/NNS
to/TO
buy/VB
additional/JJ
shares/NNS
of/IN
Nashua/NNP
common/JJ
at/IN
half/JJ
price/NN
./.
In/IN
addition/NN
,/,
the/DT
company/NN
's/POS
board/NN
authorized/VBD
the/DT
purchase/NN
of/IN
up/IN
to/TO
an/DT
additional/JJ
one/CD
million/CD
shares/NNS
./.
Under/IN
a/DT
program/NN
approved/VBN
by/IN
the/DT
company/NN
in/IN
1987/CD
that/WDT
did/VBD
n't/RB
specify/VB
a/DT
share/NN
amount/NN
,/,
Nashua/NNP
had/VBD
purchased/VBN
481,000/CD
shares/NNS
through/IN
Sept./NNP
29/CD
./.
Alex/NNP
Henderson/NNP
,/,
an/DT
analyst/NN
at/IN
Prudential-Bache/NNP
Securities/NNPS
,/,
said/VBD
that/IN
while/IN
Nashua/NNP
's/POS
performance/NN
this/DT
year/NN
has/VBZ
been/VBN
``/``
atrocious/JJ
,/,
''/''
the/DT
company/NN
nonetheless/RB
is/VBZ
attractive/JJ
as/IN
a/DT
``/``
classic/JJ
breakup/NN
candidate/NN
because/IN
there/EX
's/VBZ
no/DT
similarity/NN
between/IN
its/PRP$
four/CD
businesses/NNS
./.
''/''
He/PRP
estimated/VBD
the/DT
breakup/NN
value/NN
at/IN
$/$
55/CD
a/DT
share/NN
./.
In/IN
addition/NN
to/TO
selling/VBG
Japanese-made/JJ
photocopiers/NNS
and/CC
facsimile/JJ
machines/NNS
in/IN
Europe/NNP
and/CC
copier/NN
supplies/NNS
in/IN
the/DT
U.S./NNP
,/,
Nashua/NNP
has/VBZ
three/CD
other/JJ
major/JJ
businesses/NNS
:/:
labels/NNS
and/CC
tapes/NNS
,/,
data/NNS
storage/NN
disks/NNS
for/IN
computers/NNS
and/CC
mail-order/JJ
photofinishing/NN
./.
The/DT
closely/RB
held/VBN
supermarket/NN
chain/NN
named/VBD
Frank/NNP
Nicastro/NNP
vice/NN
president/NN
and/CC
treasurer/NN
./.
The/DT
47-year-old/JJ
Mr./NNP
Nicastro/NNP
joins/VBZ
Grand/NNP
Union/NNP
from/IN
Singer/NNP
Co./NNP
,/,
where/WRB
he/PRP
was/VBD
treasurer/NN
./.
The/DT
current/JJ
account/NN
deficit/NN
on/IN
France/NNP
's/POS
balance/NN
of/IN
payments/NNS
narrowed/VBD
to/TO
1.48/CD
billion/CD
French/JJ
francs/NNS
$/$
236.8/CD
million/CD
August/NNP
from/IN
a/DT
revised/VBN
2.1/CD
billion/CD
francs/NNS
in/IN
July/NNP
,/,
the/DT
Finance/NNP
Ministry/NNP
said/VBD
./.
Previously/RB
,/,
the/DT
July/NNP
figure/NN
was/VBD
estimated/VBN
at/IN
a/DT
deficit/NN
of/IN
613/CD
million/CD
francs/NNS
./.
Seasonally/RB
adjusted/VBN
figures/NNS
for/IN
August/NNP
were/VBD
n't/RB
available/JJ
because/IN
of/IN
a/DT
recent/JJ
strike/NN
that/WDT
has/VBZ
disrupted/VBN
the/DT
ministry/NN
's/POS
data/NNS
collection/NN
./.
Weisfield/NNP
's/POS
Inc./NNP
said/VBD
it/PRP
is/VBZ
in/IN
preliminary/JJ
discussions/NNS
regarding/VBG
the/DT
possible/JJ
sale/NN
of/IN
the/DT
company/NN
./.
A/DT
spokesman/NN
for/IN
the/DT
retail/JJ
jeweler/NN
said/VBD
the/DT
company/NN
would/MD
provide/VB
more/JJR
details/NNS
today/NN
and/CC
that/IN
it/PRP
expects/VBZ
to/TO
reach/VB
a/DT
definitive/JJ
agreement/NN
by/IN
the/DT
end/NN
of/IN
the/DT
week/NN
./.
In/IN
over-the-counter/JJ
trading/NN
Friday/NNP
,/,
Weisfield/NNP
's/POS
gained/VBD
$/$
9.50/CD
to/TO
$/$
39/CD
./.
At/IN
that/DT
price/NN
,/,
the/DT
company/NN
has/VBZ
an/DT
indicated/VBN
value/NN
of/IN
$/$
42.9/CD
million/CD
./.
Weisfield/NNP
's/POS
had/VBD
about/IN
1.1/CD
million/CD
shares/NNS
outstanding/JJ
as/IN
of/IN
July/NNP
31/CD
./.
The/DT
stock/NN
gained/VBD
$/$
2.75/CD
Thursday/NNP
to/TO
close/VB
at/IN
a/DT
then-52/JJ
week/NN
high/JJ
./.
In/IN
the/DT
aftermath/NN
of/IN
the/DT
Beijing/NNP
massacre/NN
on/IN
June/NNP
4/CD
,/,
economists/NNS
advanced/VBD
wildly/RB
divergent/JJ
views/NNS
on/IN
how/WRB
Hong/NNP
Kong/NNP
would/MD
be/VB
affected/VBN
./.
Among/IN
the/DT
most/JJS
upbeat/NN
was/VBD
BT/NNP
Brokerage/NNP
Asia/NNP
Ltd/NNP
./.
In/IN
a/DT
June/NNP
5/CD
reaction/NN
,/,
the/DT
Bankers/NNPS
Trust/NNP
Co./NNP
unit/NN
proclaimed/VBD
the/DT
economy/NN
``/``
shockproof/JJ
./.
''/''
Others/NNS
were/VBD
more/RBR
cautious/JJ
./.
In/IN
a/DT
July/NNP
analysis/NN
titled/VBN
``/``
From/IN
Euphoria/NNP
to/TO
Despair/NN
,/,
''/''
W.I./NNP
Carr/NNP
Far/NNP
East/NNP
Ltd./NNP
,/,
another/DT
securities/NNS
firm/NN
,/,
said/VBD
that/IN
eroding/VBG
confidence/NN
might/MD
undermine/VB
future/JJ
economic/JJ
development/NN
./.
Today/NN
,/,
with/IN
business/NN
activity/NN
in/IN
Hong/NNP
Kong/NNP
staggering/VBG
along/IN
at/IN
an/DT
uneven/JJ
pace/NN
,/,
the/DT
economy/NN
itself/PRP
seems/VBZ
locked/VBN
in/IN
a/DT
struggle/NN
between/IN
hope/NN
and/CC
fear/NN
./.
Manufacturers/NNS
have/VBP
survived/VBN
the/DT
turmoil/NN
in/IN
China/NNP
largely/RB
unscathed/JJ
./.
Signs/NNS
of/IN
revival/NN
seem/VBP
evident/JJ
in/IN
Hong/NNP
Kong/NNP
's/POS
hard-hit/JJ
hotel/NN
sector/NN
./.
But/CC
in/IN
the/DT
stock/NN
and/CC
real-estate/NN
markets/NNS
,/,
activity/NN
remains/VBZ
spotty/JJ
even/RB
though/IN
prices/NNS
have/VBP
regained/VBN
much/RB
of/IN
their/PRP$
lost/VBN
ground/NN
./.
Waning/JJ
demand/NN
reported/VBN
by/IN
importers/NNS
,/,
retailers/NNS
and/CC
even/RB
fancy/JJ
restaurants/NNS
all/DT
reinforce/VBP
a/DT
profile/NN
of/IN
a/DT
community/NN
that/WDT
is/VBZ
sharply/RB
tightening/VBG
its/PRP$
belt/NN
./.
As/IN
many/JJ
economists/NNS
and/CC
businessmen/NNS
see/VBP
it/PRP
,/,
those/DT
incongruities/NNS
underscore/VBP
a/DT
paradox/NN
that/WDT
seems/VBZ
likely/JJ
to/TO
bedevil/VB
the/DT
economy/NN
throughout/IN
the/DT
1990s/CD
./.
That/DT
paradox/NN
is/VBZ
Hong/NNP
Kong/NNP
's/POS
economically/RB
rewarding/JJ
yet/CC
politically/RB
perilous/JJ
relationship/NN
with/IN
China/NNP
./.
As/IN
a/DT
model/NN
of/IN
capitalist/JJ
efficiency/NN
on/IN
southern/JJ
China/NNP
's/POS
doorstep/NN
,/,
Hong/NNP
Kong/NNP
's/POS
prospects/NNS
look/VBP
good/JJ
./.
China/NNP
's/POS
land/NN
and/CC
labor/NN
offer/VBP
inexpensive/JJ
alternatives/NNS
to/TO
local/JJ
industry/NN
./.
China-bound/JJ
freight/NN
streams/NNS
through/IN
the/DT
territory/NN
's/POS
port/NN
./.
In/IN
the/DT
decade/NN
since/IN
the/DT
communist/NN
nation/NN
emerged/VBD
from/IN
isolation/NN
,/,
its/PRP$
burgeoning/VBG
trade/NN
with/IN
the/DT
West/NN
has/VBZ
lifted/VBN
Hong/NNP
Kong/NNP
's/POS
status/NN
as/IN
a/DT
regional/JJ
business/NN
center/NN
./.
These/DT
benefits/NNS
seem/VBP
secure/JJ
despite/IN
China/NNP
's/POS
current/JJ
economic/JJ
and/CC
political/JJ
troubles/NNS
./.
But/CC
to/TO
Hong/NNP
Kong/NNP
,/,
China/NNP
is/VBZ
n't/RB
purely/RB
business/NN
./.
It/PRP
is/VBZ
also/RB
the/DT
sovereign/JJ
power/NN
that/IN
,/,
come/VB
1997/CD
,/,
will/MD
take/VB
over/IN
this/DT
British/JJ
colony/NN
./.
China/NNP
's/POS
leaders/NNS
have/VBP
promised/VBN
generous/JJ
liberties/NNS
for/IN
post-1997/JJ
Hong/NNP
Kong/NNP
./.
That/DT
promise/NN
sounds/VBZ
shaky/JJ
now/RB
that/IN
those/DT
same/JJ
leaders/NNS
have/VBP
fallen/VBN
back/RB
on/IN
Marxist/JJ
dogma/NN
and/CC
brute/JJ
force/NN
to/TO
crush/VB
their/PRP$
nation/NN
's/POS
democracy/NN
movement/NN
./.
Outflows/NNS
of/IN
people/NNS
and/CC
capital/NN
from/IN
Hong/NNP
Kong/NNP
have/VBP
been/VBN
growing/VBG
since/IN
the/DT
sovereignty/NN
issue/NN
first/RB
arose/VBD
in/IN
the/DT
early/JJ
1980s/CD
./.
A/DT
widely/RB
held/VBN
assumption/NN
all/DT
along/IN
has/VBZ
been/VBN
that/IN
,/,
given/VBN
its/PRP$
robust/JJ
economy/NN
,/,
Hong/NNP
Kong/NNP
will/MD
be/VB
able/JJ
to/TO
attract/VB
sufficient/JJ
foreign/JJ
money/NN
and/CC
talent/NN
to/TO
comfortably/RB
offset/VB
the/DT
outflows/NNS
./.
With/IN
interest/NN
in/IN
emigration/NN
and/CC
investment/NN
abroad/RB
soaring/VBG
since/IN
June/NNP
4/CD
,/,
that/DT
assumption/NN
no/RB
longer/RB
seems/VBZ
so/RB
safe/JJ
./.
Investment/NN
and/CC
emigration/NN
plans/NNS
take/VBP
time/NN
to/TO
come/VB
to/TO
fruition/NN
./.
Only/RB
four/CD
months/NNS
have/VBP
passed/VBN
since/IN
the/DT
Beijing/NNP
massacre/NN
,/,
and/CC
few/JJ
are/VBP
prepared/VBN
to/TO
predict/VB
its/PRP$
ultimate/JJ
impact/NN
./.
The/DT
only/JJ
consensus/NN
is/VBZ
that/IN
more/JJR
money/NN
and/CC
people/NNS
may/MD
leave/VB
Hong/NNP
Kong/NNP
than/IN
had/VBD
been/VBN
thought/VBN
likely/RB
./.
This/DT
expected/VBN
blow/NN
has/VBZ
cast/VBN
a/DT
pall/NN
over/IN
the/DT
economy/NN
's/POS
prospects/NNS
./.
The/DT
question/NN
,/,
as/IN
many/JJ
people/NNS
see/VBP
it/PRP
,/,
is/VBZ
how/WRB
long/JJ
such/JJ
uncertainty/NN
will/MD
last/VB
./.
Maureen/NNP
Fraser/NNP
,/,
an/DT
economist/NN
with/IN
W.I./NNP
Carr/NNP
,/,
a/DT
subsidiary/NN
of/IN
France/NNP
's/POS
Banque/NNP
Indosuez/NNP
,/,
believes/VBZ
that/IN
the/DT
territory/NN
may/MD
not/RB
be/VB
able/JJ
to/TO
regain/VB
its/PRP$
momentum/NN
until/IN
some/DT
time/NN
after/IN
1997/CD
./.
It/PRP
may/MD
experience/VB
an/DT
upswing/NN
or/CC
two/CD
in/IN
between/IN
./.
But/CC
with/IN
local/JJ
investors/NNS
shaken/VBN
by/IN
China/NNP
's/POS
political/JJ
and/CC
economic/JJ
turmoil/NN
,/,
she/PRP
says/VBZ
,/,
a/DT
genuine/JJ
recovery/NN
may/MD
not/RB
arrive/VB
until/IN
Hong/NNP
Kong/NNP
can/MD
prove/VB
itself/PRP
secure/JJ
under/IN
Chinese/JJ
sovereignty/NN
./.
``/``
Investors/NNS
have/VBP
to/TO
accept/VB
the/DT
possibility/NN
of/IN
a/DT
significant/JJ
slowdown/NN
in/IN
economic/JJ
activity/NN
in/IN
the/DT
runup/NN
to/TO
1997/CD
,/,
''/''
she/PRP
says/VBZ
./.
``/``
Over/IN
the/DT
next/JJ
few/JJ
years/NNS
,/,
I/PRP
would/MD
advise/VB
caution/NN
./.
''/''
In/IN
a/DT
soon-to-be/JJ
published/VBN
book/NN
on/IN
the/DT
territory/NN
,/,
a/DT
political/JJ
economist/NN
,/,
Miron/NNP
Mushkat/NNP
,/,
has/VBZ
derived/VBN
three/CD
future/JJ
scenarios/NNS
from/IN
interviews/NNS
with/IN
41/CD
Hong/NNP
Kong/NNP
government/NN
officials/NNS
and/CC
businessmen/NNS
./.
Nearly/RB
half/DT
of/IN
them/PRP
argue/VBP
that/IN
Hong/NNP
Kong/NNP
's/POS
uneasy/JJ
relationship/NN
with/IN
China/NNP
will/MD
constrain/VB
--/:
though/IN
not/RB
inhibit/VB
--/:
long-term/JJ
economic/JJ
growth/NN
./.
The/DT
rest/NN
are/VBP
split/VBN
roughly/RB
between/IN
optimists/NNS
who/WP
expect/VBP
Hong/NNP
Kong/NNP
to/TO
hum/VB
along/IN
as/RB
before/IN
and/CC
pessimists/NNS
who/WP
foresee/VBP
irreparable/JJ
chaos/NN
./.
The/DT
interviews/NNS
took/VBD
place/NN
two/CD
years/NNS
ago/IN
./.
Since/IN
the/DT
China/NNP
crisis/NN
erupted/VBD
,/,
Mr./NNP
Mushkat/NNP
says/VBZ
,/,
the/DT
scenario/NN
as/IN
depicted/VBN
by/IN
the/DT
middle-of-the-road/JJ
group/NN
bears/VBZ
a/DT
remarkable/JJ
resemblance/NN
to/TO
the/DT
difficulties/NNS
Hong/NNP
Kong/NNP
currently/RB
faces/VBZ
./.
The/DT
consensus/NN
of/IN
this/DT
group/NN
,/,
which/WDT
he/PRP
dubs/VBZ
``/``
realists/NNS
,/,
''/''
is/VBZ
that/IN
the/DT
local/JJ
economy/NN
will/MD
grow/VB
through/IN
the/DT
1990s/CD
at/IN
annual/JJ
rates/NNS
averaging/VBG
between/IN
3/CD
%/NN
and/CC
5/CD
%/NN
./.
Such/PDT
a/DT
pace/NN
of/IN
growth/NN
,/,
though/IN
respectable/JJ
for/IN
mature/JJ
industrialized/VBN
economies/NNS
,/,
would/MD
be/VB
unusually/RB
slow/JJ
for/IN
Hong/NNP
Kong/NNP
./.
Only/RB
twice/RB
since/IN
the/DT
1960s/CD
has/VBZ
annual/JJ
gross/JJ
domestic/JJ
product/NN
growth/NN
here/RB
fallen/VBN
below/IN
5/CD
%/NN
for/IN
two/CD
or/CC
more/JJR
consecutive/JJ
years/NNS
./.
The/DT
first/JJ
instance/NN
occurred/VBD
in/IN
1967-68/CD
,/,
when/WRB
China/NNP
's/POS
Cultural/NNP
Revolution/NNP
triggered/VBD
bloody/JJ
street/NN
rioting/NN
in/IN
the/DT
colony/NN
./.
The/DT
other/JJ
came/VBD
in/IN
1974-75/CD
from/IN
the/DT
combined/VBN
shock/NN
of/IN
world/NN
recession/NN
and/CC
a/DT
severe/JJ
local/JJ
stock/NN
market/NN
crash/NN
./.
During/IN
the/DT
past/JJ
10/CD
years/NNS
,/,
Hong/NNP
Kong/NNP
's/POS
economic/JJ
growth/NN
has/VBZ
averaged/VBN
8.3/CD
%/NN
annually/RB
./.
Given/VBN
Hong/NNP
Kong/NNP
's/POS
record/NN
,/,
Mr./NNP
Mushkat/NNP
's/POS
``/``
realists/NNS
''/''
might/MD
have/VB
sounded/VBN
unduly/RB
conservative/JJ
when/WRB
the/DT
interviews/NNS
took/VBD
place/NN
two/CD
years/NNS
ago/IN
./.
Under/IN
the/DT
current/JJ
circumstances/NNS
,/,
he/PRP
says/VBZ
,/,
their/PRP$
scenario/NN
no/RB
longer/RB
seems/VBZ
unrealistic/JJ
./.
``/``
The/DT
city/NN
could/MD
lose/VB
some/DT
of/IN
its/PRP$
entrepreneurial/JJ
flavor/NN
./.
It/PRP
could/MD
lose/VB
some/DT
of/IN
its/PRP$
dynamism/NN
,/,
''/''
says/VBZ
Mr./NNP
Mushkat/NNP
,/,
a/DT
director/NN
of/IN
Baring/NNP
Securities/NNPS
Hong/NNP
Kong/NNP
Ltd./NNP
,/,
a/DT
unit/NN
of/IN
Britain/NNP
's/POS
Barings/NNPS
PLC/NNP
./.
``/``
It/PRP
does/VBZ
n't/RB
have/VB
to/TO
be/VB
a/DT
disaster/NN
./.
It/PRP
just/RB
means/VBZ
that/IN
Hong/NNP
Kong/NNP
would/MD
become/VB
a/DT
less/RBR
exciting/JJ
place/NN
./.
''/''
Going/VBG
by/IN
official/JJ
forecasts/NNS
of/IN
GDP/NNP
,/,
which/WDT
measures/VBZ
the/DT
colony/NN
's/POS
output/NN
of/IN
goods/NNS
and/CC
services/NNS
,/,
minus/CC
foreign/JJ
income/NN
,/,
Mr./NNP
Mushkat/NNP
's/POS
``/``
realists/NNS
''/''
seem/VBP
relatively/RB
close/RB
to/TO
the/DT
mark/NN
./.
After/IN
taking/VBG
into/IN
account/NN
the/DT
fallout/NN
from/IN
the/DT
China/NNP
crisis/NN
,/,
the/DT
government/NN
has/VBZ
projected/VBN
1989/CD
GDP/NNP
growth/NN
of/IN
5/CD
%/NN
./.
The/DT
updated/VBN
forecast/NN
,/,
published/VBN
Aug./NNP
25/CD
,/,
compares/VBZ
with/IN
an/DT
earlier/JJR
forecast/NN
of/IN
6/CD
%/NN
published/VBN
March/NNP
1/CD
and/CC
a/DT
7.4/CD
%/NN
rate/NN
achieved/VBN
in/IN
Sir/NNP
Piers/NNP
Jacobs/NNP
,/,
Hong/NNP
Kong/NNP
's/POS
financial/JJ
secretary/NN
,/,
says/VBZ
a/DT
further/RB
downward/JJ
revision/NN
may/MD
be/VB
justified/VBN
unless/IN
the/DT
economy/NN
stages/VBZ
a/DT
more/RBR
convincing/JJ
rally/NN
./.
``/``
We/PRP
are/VBP
n't/RB
looking/VBG
at/IN
anything/NN
like/IN
a/DT
doomsday/NN
scenario/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
But/CC
clearly/RB
we/PRP
're/VBP
entering/VBG
a/DT
difficult/JJ
period/NN
./.
''/''
Many/JJ
factors/NNS
besides/IN
a/DT
dread/NN
of/IN
1997/CD
will/MD
have/VB
a/DT
bearing/NN
on/IN
Hong/NNP
Kong/NNP
's/POS
economy/NN
./.
One/CD
concerns/VBZ
Japanese/JJ
investors/NNS
./.
Barely/RB
visible/JJ
on/IN
Hong/NNP
Kong/NNP
's/POS
property/NN
scene/NN
in/IN
1985/CD
,/,
by/IN
last/JJ
year/NN
Japan/NNP
had/VBD
become/VBN
the/DT
top/JJ
foreign/JJ
investor/NN
,/,
spending/VBG
$/$
602/CD
million/CD
./.
The/DT
market/NN
has/VBZ
grown/VBN
relatively/RB
quiet/JJ
since/IN
the/DT
China/NNP
crisis/NN
./.
But/CC
if/IN
the/DT
Japanese/NNPS
return/VBP
in/IN
force/NN
,/,
their/PRP$
financial/JJ
might/NN
could/MD
compensate/VB
to/TO
some/DT
extent/NN
for/IN
local/JJ
investors/NNS
'/POS
waning/VBG
commitment/NN
./.
Another/DT
--/:
and/CC
critical/JJ
--/:
factor/NN
is/VBZ
the/DT
U.S./NNP
,/,
Hong/NNP
Kong/NNP
's/POS
biggest/JJS
export/NN
market/NN
./.
Even/RB
before/IN
the/DT
China/NNP
crisis/NN
,/,
weak/JJ
U.S./NNP
demand/NN
was/VBD
slowing/VBG
local/JJ
economic/JJ
growth/NN
./.
Conversely/RB
,/,
strong/JJ
consumer/NN
spending/NN
in/IN
the/DT
U.S./NNP
two/CD
years/NNS
ago/IN
helped/VBD
propel/VB
the/DT
local/JJ
economy/NN
at/IN
more/RBR
than/IN
twice/RB
its/PRP$
current/JJ
rate/NN
./.
Indeed/RB
,/,
a/DT
few/JJ
economists/NNS
maintain/VBP
that/IN
global/JJ
forces/NNS
will/MD
continue/VB
to/TO
govern/VB
Hong/NNP
Kong/NNP
's/POS
economic/JJ
rhythm/NN
./.
Once/IN
external/JJ
conditions/NNS
,/,
such/JJ
as/IN
U.S./NNP
demand/NN
,/,
swing/VBP
in/IN
the/DT
territory/NN
's/POS
favor/NN
,/,
they/PRP
argue/VBP
,/,
local/JJ
businessmen/NNS
will/MD
probably/RB
overcome/VB
their/PRP$
1997/CD
worries/NNS
and/CC
continue/VB
doing/VBG
business/NN
as/IN
usual/JJ
./.
But/CC
economic/JJ
arguments/NNS
,/,
however/RB
solid/JJ
,/,
wo/MD
n't/RB
necessarily/RB
impress/VB
Hong/NNP
Kong/NNP
's/POS
5.7/CD
million/CD
people/NNS
./.
Many/DT
are/VBP
refugees/NNS
,/,
having/VBG
fled/VBN
China/NNP
's/POS
unending/JJ
cycles/NNS
of/IN
political/JJ
repression/NN
and/CC
poverty/NN
since/IN
the/DT
Communist/NNP
Party/NNP
took/VBD
power/NN
in/IN
1949/CD
./.
As/IN
a/DT
result/NN
,/,
many/JJ
of/IN
those/DT
now/RB
planning/VBG
to/TO
leave/VB
Hong/NNP
Kong/NNP
ca/MD
n't/RB
easily/RB
be/VB
swayed/VBN
by/IN
momentary/JJ
improvements/NNS
in/IN
the/DT
colony/NN
's/POS
political/JJ
and/CC
economic/JJ
climate/NN
./.
Emigration/NN
applications/NNS
soared/VBD
in/IN
1985/CD
,/,
when/WRB
Britain/NNP
and/CC
China/NNP
ratified/VBD
their/PRP$
accord/NN
on/IN
Hong/NNP
Kong/NNP
's/POS
future/NN
./.
In/IN
1987/CD
,/,
Hong/NNP
Kong/NNP
's/POS
most/JJS
prosperous/JJ
year/NN
for/IN
a/DT
decade/NN
,/,
30,000/CD
left/VBD
,/,
up/IN
58/CD
%/NN
from/IN
the/DT
previous/JJ
year/NN
./.
Last/JJ
year/NN
,/,
45,000/CD
went/VBD
./.
The/DT
government/NN
predicts/VBZ
that/IN
annual/JJ
outflows/NNS
will/MD
level/VB
off/IN
over/IN
the/DT
next/JJ
few/JJ
years/NNS
at/IN
as/RB
much/JJ
as/IN
60,000/CD
--/:
a/DT
projection/NN
that/WDT
is/VBZ
widely/RB
regarded/VBN
as/RB
unrealistically/RB
low/JJ
./.
A/DT
large/JJ
number/NN
of/IN
those/DT
leaving/VBG
are/VBP
managers/NNS
and/CC
professionals/NNS
./.
While/IN
no/DT
one/NN
professes/VBZ
to/TO
know/VB
the/DT
exact/JJ
cost/NN
of/IN
such/PDT
a/DT
``/``
brain/NN
drain/NN
''/''
to/TO
the/DT
economy/NN
,/,
hardly/RB
anyone/NN
doubts/VBZ
that/IN
it/PRP
poses/VBZ
a/DT
threat/NN
./.
``/``
When/WRB
the/DT
economy/NN
loses/VBZ
a/DT
big/JJ
portion/NN
of/IN
its/PRP$
work/NN
force/NN
that/WDT
also/RB
happens/VBZ
to/TO
include/VB
its/PRP$
most/JJS
productive/JJ
members/NNS
,/,
economic/JJ
growth/NN
is/VBZ
bound/VBN
to/TO
be/VB
affected/VBN
,/,
''/''
says/VBZ
Anthong/NNP
Wong/NNP
,/,
an/DT
economist/NN
with/IN
Hang/NNP
Seng/NNP
Bank/NNP
./.
While/IN
Wall/NNP
Street/NNP
is/VBZ
retreating/VBG
from/IN
computer-driven/JJ
program/NN
trading/NN
,/,
big/JJ
institutional/JJ
investors/NNS
are/VBP
likely/JJ
to/TO
continue/VB
these/DT
strategies/NNS
at/IN
full/JJ
blast/NN
,/,
further/RB
roiling/VBG
the/DT
stock/NN
market/NN
,/,
trading/VBG
executives/NNS
say/VBP
./.
Bowing/VBG
to/TO
a/DT
mounting/VBG
public/NN
outcry/NN
,/,
three/CD
more/JJR
major/JJ
securities/NNS
firms/NNS
--/:
Bear/NNP
,/,
Stearns/NNP
&/CC
Co./NNP
Inc./NNP
,/,
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
and/CC
Oppenheimer/NNP
&/CC
Co./NNP
--/:
announced/VBD
Friday/NNP
they/PRP
would/MD
suspend/VB
stock-index/NN
arbitrage/NN
trading/NN
for/IN
their/PRP$
own/JJ
accounts/NNS
./.
PaineWebber/NNP
Group/NNP
Inc./NNP
announced/VBD
a/DT
pullback/NN
on/IN
Thursday/NNP
from/IN
stock-index/NN
arbitrage/NN
,/,
a/DT
controversial/JJ
program-trading/NN
strategy/NN
blamed/VBN
by/IN
many/JJ
investors/NNS
for/IN
encouraging/VBG
big/JJ
stock-market/NN
swings/NNS
./.
Though/IN
the/DT
trading/NN
halts/NNS
are/VBP
offered/VBN
as/IN
a/DT
sign/NN
of/IN
concern/NN
about/IN
recent/JJ
stock/NN
market/NN
volatility/NN
,/,
most/JJS
Wall/NNP
Street/NNP
firms/NNS
remain/VBP
open/JJ
to/TO
handle/VB
program/NN
trading/NN
for/IN
customers/NNS
./.
Trading/VBG
executives/NNS
privately/RB
say/VBP
that/IN
huge/JJ
stock-index/NN
funds/NNS
,/,
which/WDT
dwarf/VBP
Wall/NNP
Street/NNP
firms/NNS
in/IN
terms/NNS
of/IN
the/DT
size/NN
of/IN
their/PRP$
program/NN
trades/NNS
,/,
will/MD
continue/VB
to/TO
launch/VB
big/JJ
programs/NNS
through/IN
the/DT
stock/NN
market/NN
./.
Wells/NNP
Fargo/NNP
Investment/NNP
Advisers/NNPS
,/,
Bankers/NNPS
Trust/NNP
Co./NNP
and/CC
Mellon/NNP
Capital/NNP
Management/NNP
are/VBP
among/IN
the/DT
top/JJ
stock-index/NN
arbitrage/NN
clients/NNS
of/IN
Wall/NNP
Street/NNP
,/,
trading/VBG
executives/NNS
say/VBP
./.
These/DT
huge/JJ
stock-index/NN
funds/NNS
build/VBP
portfolios/NNS
that/WDT
match/VBP
the/DT
S&P/NNP
500/CD
stock/NN
index/NN
or/CC
other/JJ
stock/NN
indexes/NNS
,/,
and/CC
frequently/RB
swap/VBP
between/IN
stocks/NNS
and/CC
futures/NNS
to/TO
capture/VB
profits/NNS
./.
``/``
They/PRP
will/MD
do/VB
it/PRP
every/DT
chance/NN
they/PRP
get/VBP
,/,
''/''
said/VBD
one/CD
program-trading/JJ
executive/NN
./.
Consequently/RB
,/,
abrupt/JJ
swings/NNS
in/IN
the/DT
stock/NN
market/NN
are/VBP
not/RB
likely/JJ
to/TO
disappear/VB
anytime/RB
soon/RB
,/,
they/PRP
say/VBP
./.
In/IN
fact/NN
,/,
without/IN
Wall/NNP
Street/NNP
firms/NNS
trading/VBG
for/IN
their/PRP$
own/JJ
accounts/NNS
,/,
the/DT
stock-index/NN
arbitrage/NN
trading/NN
opportunities/NNS
for/IN
the/DT
big/JJ
funds/NNS
may/MD
be/VB
all/PDT
the/DT
more/RBR
abundant/JJ
./.
``/``
More/JJR
customers/NNS
may/MD
come/VB
to/TO
us/PRP
now/RB
,/,
''/''
said/VBD
James/NNP
Cayne/NNP
,/,
president/NN
of/IN
Bear/NNP
Stearns/NNP
Cos/NNP
./.
Executives/NNS
who/WP
manage/VBP
these/DT
funds/NNS
see/VBP
the/DT
current/JJ
debate/NN
over/IN
program/NN
trading/NN
as/IN
a/DT
repeat/NN
of/IN
the/DT
concern/NN
expressed/VBN
after/IN
the/DT
1987/CD
crash/NN
./.
They/PRP
noted/VBD
that/IN
studies/NNS
completed/VBN
after/IN
the/DT
1987/CD
crash/NN
exonerated/VBD
program/NN
trading/NN
as/IN
a/DT
source/NN
of/IN
volatility/NN
./.
``/``
The/DT
issues/NNS
that/WDT
are/VBP
(/(
now/RB
)/)
being/VBG
raised/VBN
,/,
in/IN
classic/JJ
anti-intellectual/JJ
fashion/NN
,/,
fly/VBP
in/IN
the/DT
face/NN
of/IN
a/DT
number/NN
of/IN
post-crash/JJ
studies/NNS
,/,
''/''
said/VBD
Fred/NNP
Grauer/NNP
,/,
chairman/NN
of/IN
Wells/NNP
Fargo/NNP
Investment/NNP
Advisers/NNPS
./.
A/DT
Bankers/NNPS
Trust/NNP
spokesman/NN
said/VBD
that/IN
the/DT
company/NN
's/POS
investment/NN
arm/NN
uses/VBZ
stock-index/NN
arbitrage/NN
to/TO
enhance/VB
investors/NNS
'/POS
returns/NNS
./.
Officials/NNS
at/IN
Mellon/NNP
Capital/NNP
were/VBD
unavailable/JJ
for/IN
comment/NN
./.
Stock-index/NN
funds/NNS
have/VBP
grown/VBN
in/IN
popularity/NN
over/IN
the/DT
past/JJ
decade/NN
as/IN
pension/NN
funds/NNS
and/CC
other/JJ
institutional/JJ
investors/NNS
have/VBP
sought/VBN
a/DT
low-cost/NN
way/NN
to/TO
match/VB
the/DT
performance/NN
of/IN
the/DT
stock/NN
market/NN
as/IN
a/DT
whole/NN
./.
Many/JJ
money/NN
managers/NNS
who/WP
trade/VBP
stock/NN
actively/RB
have/VBP
trouble/NN
consistently/RB
matching/VBG
the/DT
S&P-500/CD
's/POS
returns/NNS
./.
Some/DT
stock-index/NN
funds/NNS
are/VBP
huge/JJ
./.
Wells/NNP
Fargo/NNP
Investment/NNP
Advisers/NNPS
,/,
for/IN
example/NN
,/,
managed/VBD
$/$
25/CD
billion/CD
in/IN
stock/NN
investments/NNS
tracking/VBG
the/DT
S*/NNP&P/NN
500/CD
at/IN
the/DT
end/NN
of/IN
June/NNP
,/,
according/VBG
to/TO
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp/NNP
./.
Mr./NNP
Grauer/NNP
said/VBD
$/$
2/CD
billion/CD
of/IN
that/WDT
is/VBZ
used/VBN
in/IN
active/JJ
index/NN
arbitrage/NN
./.
Stock-index/NN
funds/NNS
frequently/RB
use/VBP
the/DT
futures/NNS
markets/NNS
as/IN
a/DT
hedging/VBG
tool/NN
,/,
but/CC
that/DT
is/VBZ
a/DT
far/RB
less/RBR
aggressive/JJ
strategy/NN
than/IN
stock-index/NN
arbitrage/NN
,/,
in/IN
which/WDT
traders/NNS
buy/VBP
and/CC
sell/VBP
big/JJ
blocks/NNS
of/IN
stocks/NNS
with/IN
offsetting/VBG
trades/NNS
in/IN
stock-index/NN
futures/NNS
to/TO
profit/VB
from/IN
price/NN
differences/NNS
./.
The/DT
190-point/JJ
plunge/NN
in/IN
the/DT
stock/NN
market/NN
Oct./NNP
13/CD
has/VBZ
heightened/VBN
concerns/NNS
about/IN
volatility/NN
./.
And/CC
while/IN
signs/NNS
of/IN
an/DT
economic/JJ
slowdown/NN
,/,
softer/JJR
corporate/JJ
earnings/NNS
and/CC
troubles/NNS
with/IN
takeover/NN
financing/VBG
all/DT
have/VBP
contributed/VBN
to/TO
the/DT
stock/NN
market/NN
's/POS
recent/JJ
weakness/NN
,/,
many/JJ
investors/NNS
rushed/VBD
to/TO
blame/VB
program/NN
trading/NN
for/IN
aggravating/VBG
market/NN
swings/NNS
./.
The/DT
Wall/NNP
Street/NNP
firms/NNS
'/POS
pullback/NN
followed/VBD
their/PRP$
recent/JJ
blacklisting/NN
by/IN
several/JJ
institutional/JJ
investors/NNS
./.
Last/JJ
Tuesday/NNP
,/,
Kemper/NNP
Corp./NNP
's/POS
Kemper/NNP
Financial/NNP
Services/NNPS
Inc./NNP
unit/NN
said/VBD
it/PRP
would/MD
no/RB
longer/RB
trade/VB
with/IN
firms/NNS
committed/VBN
to/TO
stock-index/NN
arbitrage/NN
,/,
including/VBG
the/DT
three/CD
that/IN
later/RB
suspended/VBN
stock-index/NN
arbitrage/NN
trading/NN
on/IN
Friday/NNP
./.
Phoenix/NNP
Mutual/NNP
Life/NNP
Insurance/NNP
Co./NNP
and/CC
Founders/NNP
Asset/NNP
Management/NNP
Inc./NNP
also/RB
cut/VBD
off/IN
brokerage/NN
firms/NNS
that/WDT
engage/VBP
in/IN
program/NN
trading/NN
./.
Though/IN
it/PRP
is/VBZ
still/RB
doing/VBG
stock-index/NN
arbitrage/NN
trades/NNS
for/IN
customers/NNS
,/,
Morgan/NNP
Stanley/NNP
's/POS
trading/NN
halt/NN
for/IN
its/PRP$
own/JJ
account/NN
is/VBZ
likely/JJ
to/TO
shake/VB
up/IN
firms/NNS
such/JJ
as/IN
Kidder/NNP
,/,
Peabody/NNP
&/CC
Co./NNP
that/WDT
still/RB
do/VBP
such/JJ
trades/NNS
for/IN
their/PRP$
own/JJ
account/NN
./.
Morgan/NNP
Stanley/NNP
has/VBZ
consistently/RB
been/VBN
one/CD
of/IN
the/DT
top/JJ
stock-index/NN
arbitrage/NN
traders/NNS
in/IN
recent/JJ
months/NNS
./.
Indeed/RB
,/,
Morgan/NNP
Stanley/NNP
's/POS
president/NN
,/,
Richard/NNP
B./NNP
Fisher/NNP
,/,
said/VBD
the/DT
firm/NN
is/VBZ
putting/VBG
up/IN
money/NN
to/TO
form/VB
a/DT
group/NN
of/IN
regulators/NNS
,/,
investors/NNS
and/CC
investment/NN
banks/NNS
to/TO
find/VB
out/IN
if/IN
stock-index/JJ
arbitrage/NN
artificially/RB
induces/VBZ
stock-market/NN
volatility/NN
./.
``/``
We/PRP
have/VBP
to/TO
clear/VB
up/IN
these/DT
issues/NNS
and/CC
find/VB
out/IN
what/WP
is/VBZ
present/JJ
that/WDT
is/VBZ
creating/VBG
artificial/JJ
volatility/NN
,/,
''/''
Mr./NNP
Fisher/NNP
said/VBD
./.
``/``
There/EX
is/VBZ
no/DT
question/NN
that/IN
investor/NN
confidence/NN
the/DT
stock/NN
market/NN
''/''
Joining/VBG
the/DT
call/NN
for/IN
some/DT
kind/NN
of/IN
study/NN
or/CC
regulatory/JJ
action/NN
,/,
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
recommended/VBD
program-trading/JJ
reforms/NNS
late/JJ
Friday/NNP
,/,
including/VBG
higher/JJR
margins/NNS
on/IN
stock-index/NN
futures/NNS
and/CC
greater/JJR
regulatory/JJ
coordination/NN
./.
Separately/RB
,/,
Mr./NNP
Cayne/NNP
of/IN
Bear/NNP
Stearns/NNP
said/VBD
his/PRP$
firm/NN
is/VBZ
working/VBG
with/IN
regulators/NNS
to/TO
balance/VB
margin/NN
requirements/NNS
to/TO
``/``
enhance/VB
stabilization/NN
./.
''/''
Margin/NN
rules/NNS
determine/VBP
the/DT
minimum/JJ
amount/NN
of/IN
cash/NN
an/DT
investor/NN
must/MD
put/VB
up/IN
when/WRB
buying/VBG
a/DT
security/NN
./.
Current/JJ
rules/NNS
permit/VBP
investors/NNS
to/TO
put/VB
up/IN
less/JJR
cash/NN
for/IN
futures/NNS
than/IN
for/IN
stocks/NNS
./.
Some/DT
observers/NNS
say/VBP
that/IN
different/JJ
rules/NNS
governing/VBG
stock/NN
and/CC
futures/NNS
markets/NNS
are/VBP
partly/RB
responsible/JJ
for/IN
volatility/NN
./.
These/DT
rules/NNS
,/,
they/PRP
say/VBP
,/,
permit/VBP
faster/JJR
and/CC
cheaper/JJR
trading/NN
in/IN
futures/NNS
than/IN
in/IN
stocks/NNS
,/,
which/WDT
frequently/RB
knocks/VBZ
the/DT
two/CD
markets/NNS
out/IN
of/IN
line/NN
./.
Stock-index/NN
arbitrage/NN
,/,
because/IN
it/PRP
sells/VBZ
the/DT
more/JJR
``/``
expensive/JJ
''/''
market/NN
and/CC
buys/VBZ
the/DT
``/``
cheaper/JJR
''/''
one/CD
,/,
attempts/VBZ
to/TO
reestablish/VB
the/DT
link/NN
between/IN
the/DT
stock/NN
and/CC
futures/NNS
markets/NNS
,/,
and/CC
the/DT
adjustments/NNS
are/VBP
often/RB
abrupt/JJ
./.
But/CC
unequal/JJ
trading/NN
rules/NNS
allow/VBP
the/DT
futures/NNS
market/NN
to/TO
trade/VB
differently/RB
from/IN
stocks/NNS
,/,
which/WDT
invites/VBZ
frequent/JJ
bouts/NNS
of/IN
stock-index/NN
arbitrage/NN
in/IN
the/DT
first/JJ
place/NN
./.
``/``
There/EX
has/VBZ
to/TO
be/VB
better/JJR
coordination/NN
on/IN
a/DT
regulatory/JJ
basis/NN
,/,
''/''
said/VBD
Christopher/NNP
Pedersen/NNP
,/,
director/NN
of/IN
trading/NN
at/IN
Twenty-First/NNP
Securities/NNPS
Corp/NNP
./.
``/``
One/CD
agency/NN
should/MD
have/VB
the/DT
authority/NN
over/IN
all/DT
equity/NN
products/NNS
./.
''/''
Like/IN
so/RB
many/JJ
trends/NNS
in/IN
the/DT
entertainment/NN
industry/NN
,/,
the/DT
current/JJ
spate/NN
of/IN
rape/NN
dramas/NN
on/IN
television/NN
seems/VBZ
to/TO
represent/VB
a/DT
confluence/NN
of/IN
high-mindedness/NN
and/CC
self-interest/NN
./.
The/DT
former/NN
comes/VBZ
from/IN
the/DT
latest/JJS
wave/NN
of/IN
political/JJ
activism/NN
in/IN
Hollywood/NNP
,/,
especially/RB
around/IN
feminist/JJ
issues/NNS
such/JJ
as/IN
abortion/NN
./.
The/DT
latter/NN
comes/VBZ
from/IN
the/DT
perception/NN
,/,
on/IN
the/DT
part/NN
of/IN
many/JJ
people/NNS
in/IN
network/NN
TV/NN
,/,
that/IN
their/PRP$
only/JJ
hope/NN
of/IN
keeping/VBG
viewers/NNS
from/IN
defecting/VBG
to/TO
cable/NN
is/VBZ
to/TO
fill/VB
the/DT
airwaves/NNS
with/IN
an/DT
increasingly/RB
raw/JJ
sensationalism/NN
./.
Put/VB
these/DT
together/RB
,/,
and/CC
you/PRP
get/VBP
programs/NNS
about/IN
rape/NN
./.
The/DT
best/JJS
of/IN
the/DT
crop/NN
was/VBD
last/JJ
week/NN
's/POS
season/NN
premiere/NN
of/IN
``/``
In/IN
the/DT
Heat/NNP
of/IN
the/DT
Night/NNP
,/,
''/''
the/DT
NBC/NNP
series/NN
based/VBN
on/IN
a/DT
1967/CD
feature/NN
film/NN
about/IN
a/DT
black/JJ
Philadelphia/NNP
police/NN
detective/NN
in/IN
a/DT
small/JJ
Southern/JJ
town/NN
./.
In/IN
the/DT
series/NN
,/,
Virgil/NNP
Tibbs/NNP
Howard/NNP
Rollins/NNP
his/PRP$
wife/NN
,/,
Althea/NNP
Anne-Marie/NNP
Johnson/NNP
Sparta/NNP
,/,
Miss/NNP
./.
Because/IN
the/DT
show/NN
has/VBZ
acquired/VBN
a/DT
sense/NN
of/IN
place/NN
by/IN
being/VBG
filmed/VBN
on/IN
location/NN
in/IN
Georgia/NNP
,/,
this/DT
episode/NN
--/:
in/IN
which/WDT
Althea/NNP
gets/VBZ
raped/VBN
by/IN
an/DT
arrogant/JJ
white/JJ
schoolteacher/NN
--/:
does/VBZ
a/DT
decent/JJ
job/NN
of/IN
tracing/VBG
the/DT
social/JJ
repercussions/NNS
of/IN
the/DT
crime/NN
./.
Obviously/RB
,/,
it/PRP
's/VBZ
harder/JJR
to/TO
establish/VB
a/DT
sense/NN
of/IN
place/NN
in/IN
a/DT
one-shot/JJ
TV/NN
movie/NN
./.
But/CC
tonight/NN
's/POS
offering/NN

,/,
``/``
Settle/VB
the/DT
Score/NN
''/''
(/(
9-11/CD
p.m./RB
EST/NNP
,/,
on/IN
NBC/NNP
This/DT
tale/NN
of/IN
a/DT
Chicago/NNP
policewoman/NN
returning/VBG
home/NN
to/TO
find/VB
the/DT
man/NN
who/WP
raped/VBD
her/PRP
20/CD
years/NNS
earlier/RBR
is/VBZ
supposed/VBN
to/TO
be/VB
set/VBN
in/IN
the/DT
Ozarks/NNPS
./.
But/CC
it/PRP
's/VBZ
more/JJR
like/IN
an/DT
illustration/NN
of/IN
what/WP
Ben/NNP
Stein/NNP
describes/VBZ
in/IN
his/PRP$
study/NN
of/IN
social/JJ
attitudes/NNS
in/IN
the/DT
TV/NN
industry/NN
:/:
``/``
Fear/NN
of/IN
violence/NN
and/CC
animosity/NN
.../:
because/IN
of/IN
race/NN
or/CC
religion/NN
,/,
fear/NN
and/CC
lack/NN
of/IN
comprehension/NN
about/IN
the/DT
politics/NNS
of/IN
small-town/JJ
people/NNS
.../:
produce/VBP
a/DT
powerful/JJ
wave/NN
of/IN
dislike/NN
of/IN
small/JJ
towns/NNS
in/IN
the/DT
minds/NNS
of/IN
TV/NN
writers/NNS
and/CC
producers/NNS
./.
''/''
The/DT
writer/NN
and/CC
executive/NN
producer/NN
of/IN
``/``
Settle/VB
the/DT
Score/NN
,/,
''/''
Steve/NNP
Sohmer/NNP
,/,
is/VBZ
a/DT
graduate/NN
of/IN
Yale/NNP
who/WP
participated/VBD
in/IN
a/DT
PBS/NNP
documentary/NN
,/,
aired/VBD
this/DT
summer/NN
,/,
in/IN
which/WDT
six/CD
members/NNS
of/IN
the/DT
Yale/NNP
class/NN
of/IN
1963/CD
ruminated/VBD
about/IN
their/PRP$
lives/NNS
since/IN
graduation/NN
./.
At/IN
one/CD
point/NN
in/IN
the/DT
documentary/NN
,/,
Mr./NNP
Sohmer/NNP
,/,
who/WP
is/VBZ
Jewish/NNP
,/,
says/VBZ
he/PRP
felt/VBD
rejected/VBN
by/IN
many/JJ
of/IN
the/DT
Protestants/NNPS
and/CC
Southerners/NNPS
he/PRP
met/VBD
at/IN
Yale/NNP
./.
He/PRP
quotes/VBZ
one/CD
student/NN
saying/VBG
,/,
``/``
You/PRP
're/VBP
just/RB
the/DT
kind/NN
of/IN
Jewboy/NN
we/PRP
Southerners/NNPS
ca/MD
n't/RB
stand/VB
./.
''/''
Mr./NNP
Sohmer/NNP
confesses/VBZ
that/IN
it/PRP
was/VBD
partly/RB
in/IN
response/NN
to/TO
such/JJ
attitudes/NNS
that/IN
he/PRP
is/VBZ
now/RB
``/``
a/DT
dweller/NN
on/IN
one/CD
of/IN
the/DT
two/CD
islands/NNS
off/IN
the/DT
coast/NN
of/IN
America/NNP
./.
''/''
But/CC
is/VBZ
exile/NN
in/IN
Hollywood/NNP
enough/RB
?/.
Not/RB
to/TO
judge/VB
by/IN
``/``
Settle/VB
the/DT
Score/NN
,/,
''/''
in/IN
which/WDT
Mr./NNP
Sohmer/NNP
seems/VBZ
to/TO
be/VB
settling/VBG
a/DT
score/NN
of/IN
his/PRP$
own/JJ
./.
Of/IN
all/PDT
the/DT
unflattering/JJ
portraits/NNS
of/IN
small-town/JJ
America/NNP
I/PRP
've/VBP
seen/VBN
on/IN
TV/NN
,/,
this/DT
film/NN
is/VBZ
the/DT
most/RBS
gratuitously/RB
nasty/JJ
./.
The/DT
sole/JJ
sympathetic/JJ
character/NN
is/VBZ
the/DT
prodigal/JJ
daughter/NN
Kate/NNP
Jaclyn/NNP
Smith/NNP
she/PRP
is/VBZ
tolerable/JJ
only/RB
by/IN
virtue/NN
of/IN
having/VBG
nothing/NN
in/IN
common/JJ
with/IN
her/PRP$
kinfolk/NNS
,/,
a/DT
truly/RB
benighted/JJ
pack/NN
of/IN
Southern/JJ
Protestants/NNPS
whose/WP$
grim/JJ
existence/NN
consists/VBZ
mostly/RB
of/IN
growing/VBG
peaches/NNS
and/CC
repressing/VBG
sex/NN
./.
I/PRP
mean/VBP
,/,
these/DT
folks/NNS
are/VBP
so/RB
uptight/JJ
that/IN
they/PRP
blame/VBP
pretty/JJ
Kate/NNP
for/IN
the/DT
fact/NN
that/IN
when/WRB
she/PRP
was/VBD
a/DT
teen-ager/NN
,/,
someone/NN
tied/VBD
her/PRP$
hands/NNS
behind/IN
her/PRP
back/RB
,/,
thrust/VBD
her/PRP$
head/NN
into/IN
a/DT
gunny/NN
sack/NN
,/,
brutally/RB
raped/VBD
and/CC
beat/VBD
her/PRP
,/,
and/CC
then/RB
left/VBD
her/PRP
to/TO
die/VB
in/IN
a/DT
cold-storage/JJ
room/NN
./.
Her/PRP$
Pa/NNP
Howard/NNP
Duff/NNP
the/DT
kind/NN
of/IN
guy/NN
who/WP
,/,
while/IN
saying/VBG
grace/NN
at/IN
the/DT
supper/NN
table/NN
,/,
pauses/VBZ
at/IN
the/DT
word/NN
``/``
sin/NN
''/''
and/CC
glares/VBZ
at/IN
the/DT
daughter/NN
he/PRP
has/VBZ
n't/RB
seen/VBN
for/IN
two/CD
decades/NNS
,/,
because/IN
he/PRP
knows/VBZ
in/IN
his/PRP$
heart/NN
that/IN
she/PRP
enjoyed/VBD
what/WP
happened/VBD
in/IN
the/DT
cold-storage/JJ
room/NN
,/,
and/CC
has/VBZ
been/VBN
indulging/VBG
the/DT
same/JJ
taste/NN
ever/RB
since/IN
in/IN
the/DT
fleshpots/NNS
of/IN
Chicago/NNP
./.
People/NNS
like/IN
Pa/NNP
do/VBP
exist/VB
,/,
of/IN
course/NN
./.
But/CC
in/IN
Mr./NNP
Sohmer/NNP
's/POS
Ozarks/NNPS
,/,
he/PRP
is/VBZ
but/IN
the/DT
tip/NN
of/IN
the/DT
patriarchal/JJ
iceberg/NN
./.
Every/DT
man/NN
Kate/NNP
encounters/VBZ
is/VBZ
either/RB
sniggeringly/RB
puritanical/JJ
,/,
viciously/RB
patronizing/VBG
,/,
revoltingly/RB
lecherous/JJ
,/,
or/CC
all/DT
three/CD
./.
Add/VB
the/DT
fact/NN
that/IN
any/DT
one/CD
of/IN
them/PRP
,/,
including/VBG
Pa/NNP
,/,
could/MD
be/VB
her/PRP$
attacker/NN
,/,
and/CC
you/PRP
have/VBP
a/DT
setting/NN
that/WDT
does/VBZ
n't/RB
resemble/VB
small-town/JJ
America/NNP
,/,
or/CC
even/RB
Hollywood/NNP
's/POS
nightmare/NN
of/IN
small-town/JJ
America/NNP
,/,
so/RB
much/RB
as/IN
a/DT
paranoid/JJ
feminist/NN
dystopia/NN
like/IN
Margaret/NNP
Atwood/NNP
's/POS
``/``
The/NNP
Handmaid/NNP
's/POS
Tale/NNP
,/,
''/''
itself/PRP
soon/RB
to/TO
be/VB
(/(
you/PRP
guessed/VBD
it/PRP
a/DT
Hollywood/NNP
movie/NN
./.
There/EX
are/VBP
two/CD
exceptions/NNS
:/:
Josh/NNP
Jeffrey/NNP
DeMunn/NNP
the/DT
local/JJ
doctor/NN
who/WP
has/VBZ
always/RB
loved/VBN
Kate/NNP
;/:
and/CC
Lincoln/NNP
Richard/NNP
Masur/NNP
Kate/NNP
's/POS
simple-minded/JJ
but/CC
affectionate/JJ
brother/NN
./.
Josh/NNP
makes/VBZ
clumsy/JJ
passes/NNS
at/IN
Kate/NNP
when/WRB
she/PRP
's/VBZ
seething/VBG
with/IN
anger/NN
and/CC
fear/NN
,/,
but/CC
we/PRP
know/VBP
from/IN
the/DT
outset/NN
that/IN
he/PRP
's/VBZ
not/RB
a/DT
member/NN
of/IN
the/DT
evil/JJ
patriarchy/NN
./.
How/WRB
could/MD
he/PRP
be/VB
?/.
He/PRP
's/VBZ
the/DT
director/NN
of/IN
the/DT
local/JJ
Planned/NNP
Parenthood/NNP
chapter/NN
./.
As/IN
for/IN
Lincoln/NNP
,/,
if/IN
you/PRP
ca/MD
n't/RB
guess/VB
why/WRB
he/PRP
's/VBZ
so/RB
sweet/JJ
to/TO
his/PRP$
sister/NN
when/WRB
everybody/NN
else/RB
hates/VBZ
her/PRP
,/,
then/RB
I/PRP
'm/VBP
not/RB
going/VBG
to/TO
tell/VB
you/PRP
./.
As/IN
for/IN
the/DT
women/NNS
,/,
they/PRP
're/VBP
pathetic/JJ
./.
Kate/NNP
's/POS
Ma/NNP
Louise/NNP
Latham/NNP
a/DT
moral/JJ
coward/NN
./.
Her/PRP$
sister-in-law/NN
Amy/NNP
Wright/NNP
a/DT
sniveling/VBG
prude/NN
afraid/JJ
that/IN
Kate/NNP
will/MD
seduce/VB
all/PDT
the/DT
married/VBN
men/NNS
in/IN
town/NN
,/,
including/VBG
a/DT
particularly/RB
loathsome/JJ
fellow/NN
named/VBN
Tucker/NNP
,/,
whose/WP$
idea/NN
of/IN
fun/NN
is/VBZ
to/TO
leave/VB
his/PRP$
wife/NN
at/IN
home/NN
tending/VBG
to/TO
her/PRP$
bruises/NNS
and/CC
cigarette/NN
burns/NNS
,/,
while/IN
he/PRP
bullies/VBZ
Kate/NNP
into/IN
a/DT
dance/NN
that/WDT
consists/VBZ
of/IN
drooling/VBG
on/IN
her/PRP
while/IN
trying/VBG
to/TO
break/VB
her/PRP$
ribs/NNS
./.
At/IN
the/DT
very/RB
least/JJS
,/,
it/PRP
would/MD
appear/VB
that/IN
Sis/NNP
is/VBZ
a/DT
poor/JJ
judge/NN
of/IN
masculine/JJ
charm/NN
./.
Yet/RB
even/RB
these/DT
insulting/JJ
caricatures/NNS
are/VBP
not/RB
as/RB
bad/JJ
as/IN
the/DT
moral/JJ
hypocrisy/NN
at/IN
the/DT
heart/NN
of/IN
``/``
Settle/VB
the/DT
Score/NN
./.
''/''
In/IN
the/DT
aforementioned/JJ
episode/NN
of/IN
``/``
In/NNP
the/DT
Heat/NNP
of/IN
the/DT
Night/NNP
,/,
''/''
we/PRP
saw/VBD
Althea/NNP
being/VBG
attacked/VBN
,/,
but/CC
we/PRP
were/VBD
n't/RB
invited/VBN
to/TO
enjoy/VB
the/DT
spectacle/NN
./.
In/IN
Mr./NNP
Sohmer/NNP
's/POS
film/NN
,/,
by/IN
contrast/NN
,/,
we/PRP
are/VBP
urged/VBN
to/TO
share/VB
the/DT
perverse/JJ
excitement/NN
of/IN
the/DT
rapist/NN
creeping/VBG
up/IN
on/IN
his/PRP$
victim/NN
,/,
as/IN
the/DT
camera/NN
ogles/VBZ
Kate/NNP
in/IN
various/JJ
stages/NNS
of/IN
undress/NN
and/CC
lingers/VBZ
on/IN
the/DT
sight/NN
of/IN
her/PRP$
trussed-up/JJ
body/NN
during/IN
frequent/JJ
flashbacks/NNS
to/TO
the/DT
rape/NN
./.
At/IN
this/DT
point/NN
,/,
the/DT
truce/NN
between/IN
feminism/NN
and/CC
sensationalism/NN
gets/VBZ
mighty/RB
uneasy/JJ
./.
Take/VB
the/DT
scene/NN
in/IN
which/WDT
Kate/NNP
stands/VBZ
naked/JJ
by/IN
a/DT
lighted/VBN
window/NN
,/,
whispering/VBG
to/TO
her/PRP$
hidden/VBN
assailant/NN
,/,
``/``
Look/VB
all/DT
you/PRP
want/VBP
./.
Starting/VBG
tomorrow/NN
,/,
I/PRP
'm/VBP
stalking/VBG
you/PRP
./.
''/''
Or/CC
the/DT
one/CD
in/IN
which/WDT
she/PRP
and/CC
Josh/NNP
are/VBP
stranded/VBN
in/IN
the/DT
city/NN
,/,
and/CC
,/,
after/IN
insisting/VBG
on/IN
separate/JJ
motel/NN
rooms/NNS
,/,
she/PRP
knocks/VBZ
on/IN
his/PRP$
door/NN
to/TO
pour/VB
out/IN
her/PRP$
feelings/NNS
about/IN
the/DT
rape/NN
--/:
wearing/VBG
nothing/NN
but/CC
a/DT
mini-slip/NN
and/CC
a/DT
push-up/JJ
bra/NN
./.
Surely/RB
the/DT
question/NN
is/VBZ
obvious/JJ
./.
With/IN
friends/NNS
like/IN
Mr./NNP
Sohmer/NNP
,/,
do/VBP
the/DT
feminists/NNS
of/IN
Hollywood/NNP
need/VB
enemies/NNS
?/.
Crossland/NNP
Savings/NNPS
Bank/NNP
's/POS
stock/NN
plummeted/VBD
after/IN
management/NN
recommended/VBD
a/DT
suspension/NN
of/IN
dividend/NN
payments/NNS
on/IN
both/PDT
its/PRP$
common/JJ
and/CC
preferred/JJ
stock/NN
because/IN
Crossland/NNP
may/MD
not/RB
meet/VB
the/DT
new/JJ
government/NN
capital/NN
criteria/NNS
effective/JJ
Dec./NNP
7/CD
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
Friday/NNP
,/,
Crossland/NNP
closed/VBD
at/IN
$/$
5.25/CD
,/,
down/RB
$/$
1.875/CD
,/,
a/DT
26/CD
%/NN
decline/NN
./.
A/DT
spokesman/NN
said/VBD
the/DT
savings/NNS
bank/NN
may/MD
not/RB
qualify/VB
for/IN
the/DT
capital/NN
requirements/NNS
because/IN
,/,
under/IN
the/DT
proposed/VBN
guidelines/NNS
,/,
its/PRP$
$/$
380/CD
million/CD
of/IN
preferred/VBN
stock/NN
does/VBZ
n't/RB
meet/VB
the/DT
``/``
core/NN
capital/NN
''/''
criteria/NNS
outlined/VBN
under/IN
the/DT
new/JJ
Financial/NNP
Institutions/NNPS
Reform/NNP
,/,
Recovery/NNP
and/CC
Enforcement/NNP
Act/NNP
of/IN
1989/CD
./.
He/PRP
added/VBD
that/IN
final/JJ
guidelines/NNS
to/TO
be/VB
published/VBN
in/IN
early/JJ
November/NNP
will/MD
determine/VB
whether/IN
the/DT
bank/NN
is/VBZ
in/IN
compliance/NN
./.
Crossland/NNP
said/VBD
it/PRP
retained/VBD
three/CD
investment/NN
bankers/NNS
to/TO
assist/VB
it/PRP
in/IN
developing/VBG
and/CC
implementing/VBG
a/DT
financial/JJ
restructuring/NN
plan/NN
./.
It/PRP
would/MD
n't/RB
identify/VB
the/DT
bankers/NNS
./.
Additionally/RB
,/,
Crossland/NNP
reported/VBD
a/DT
third-quarter/NN
loss/NN
of/IN
$/$
175.5/CD
million/CD
,/,
or/CC
$/$
13.44/CD
a/DT
share/NN
,/,
compared/VBN
with/IN
net/JJ
income/NN
of/IN
$/$
27.1/CD
million/CD
,/,
or/CC
$/$
1.16/CD
a/DT
share/NN
,/,
a/DT
year/NN
ago/IN
./.
A/DT
major/JJ
factor/NN
in/IN
the/DT
third-quarter/NN
loss/NN
was/VBD
the/DT
write-down/NN
of/IN
$/$
143.6/CD
million/CD
of/IN
goodwill/NN
./.
The/DT
spokesman/NN
said/VBD
that/IN
the/DT
proposed/VBN
guidelines/NNS
caused/VBD
Crossland/NNP
to/TO
revise/VB
its/PRP$
business/NN
objectives/NNS
and/CC
,/,
consequently/RB
,/,
to/TO
write/VB
down/IN
the/DT
asset/NN
value/NN
of/IN
some/DT
previous/JJ
acquisitions/NNS
./.
Crossland/NNP
recorded/VBD
an/DT
additional/JJ
$/$
20/CD
million/CD
in/IN
loan/NN
loss/NN
reserves/NNS
in/IN
the/DT
third/JJ
quarter/NN
./.
Net/JJ
interest/NN
income/NN
for/IN
the/DT
third/JJ
quarter/NN
declined/VBD
to/TO
$/$
35.6/CD
million/CD
from/IN
$/$
70.1/CD
million/CD
a/DT
year/NN
ago/IN
./.
However/RB
,/,
non-interest/JJ
income/NN
rose/VBD
to/TO
$/$
23.5/CD
million/CD
from/IN
$/$
22/CD
million/CD
./.
Third-quarter/NN
loan/NN
originations/NNS
dropped/VBD
sharply/RB
to/TO
$/$
663/CD
million/CD
from/IN
$/$
1/CD
billion/CD
a/DT
year/NN
ago/IN
./.
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NNP
lowered/VBD
the/DT
rating/NN
on/IN
Crossland/NNP
's/POS
preferred/VBN
stock/NN
to/TO
double-C/NN
from/IN
single-B-minus/NN
and/CC
placed/VBD
it/PRP
on/IN
CreditWatch/NNP
for/IN
possible/JJ
further/JJ
downgrade/NN
./.
It/PRP
also/RB
placed/VBD
on/IN
CreditWatch/NNP
for/IN
possible/JJ
downgrade/NN
other/JJ
securities/NNS
,/,
including/VBG
the/DT
double-B-minus\/B/NN
rating/NN
of/IN
Crossland/NNP
's/POS
certificates/NNS
of/IN
deposit/NN
and/CC
the/DT
single-B/NN
rating/NN
of/IN
its/PRP$
senior/JJ
subordinated/VBN
capital/NN
notes/NNS
./.
About/IN
$/$
518/CD
million/CD
of/IN
debt/NN
is/VBZ
affected/VBN
./.
The/DT
envelope/NN
arrives/VBZ
in/IN
the/DT
mail/NN
./.
Open/VB
it/PRP
and/CC
two/CD
soulful/JJ
eyes/NNS
on/IN
a/DT
boy/NN
's/POS
brown/JJ
face/NN
peer/VBP
out/IN
from/IN
the/DT
page/NN
,/,
pleadingly/RB
./.
Does/VBZ
the/DT
tyke/NN
have/VB
a/DT
good/JJ
mind/NN
about/IN
to/TO
be/VB
wasted/VBN
?/.
Is/VBZ
he/PRP
a/DT
victim/NN
of/IN
Gramm-Rudman/NNP
cuts/NNS
?/.
No/UH
,/,
but/CC
he/PRP
's/VBZ
endangered/VBN
all/PDT
the/DT

same/JJ
:/:
His/PRP$
new/JJ
sitcom/NN
on/IN
ABC/NNP
needs/VBZ
a/DT
following/NN
to/TO
stay/VB
on/IN
the/DT
air/NN
./.
ABC/NNP
has/VBZ
n't/RB
had/VBN
much/JJ
luck/NN
with/IN
shows/NNS
featuring/VBG
blacks/NNS
in/IN
recent/JJ
years/NNS
,/,
and/CC
the/DT
producers/NNS
of/IN
one/CD
new/JJ
arrival/NN
are/VBP
a/DT
bit/NN
desperate/JJ
./.
``/``
Homeroom/NNP
,/,
''/''
a/DT
show/NN
about/IN
a/DT
black/JJ
ad/NN
executive/NN
who/WP
gives/VBZ
up/IN
the/DT
boardroom/NN
for/IN
a/DT
fourth-grade/JJ
classroom/NN
,/,
is/VBZ
flunking/VBG
the/DT
ratings/NNS
test/NN
./.
So/IN
producers/NNS
Alyce/NNP
and/CC
Topper/NNP
Carew/NNP
spun/VBD
their/PRP$
Rolodexes/NNPS
and/CC
gathered/VBD
names/NNS
of/IN
black/JJ
opinion/NN
makers/NNS
to/TO
mount/VB
a/DT
direct-mail/JJ
campaign/NN
./.
By/IN
wooing/VBG
a/DT
core/NN
black/JJ
audience/NN
they/PRP
figure/VBP
they/PRP
might/MD
keep/VB
the/DT
show/NN
alive/JJ
at/IN
least/JJS
until/IN
the/DT
spring/NN
semester/NN
./.
Using/VBG
direct/JJ
mail/NN
for/IN
a/DT
TV/NN
show/NN
is/VBZ
like/IN
fishing/VBG
for/IN
whale/NN
with/IN
a/DT
breaded/VBN
hook/NN
./.
It/PRP
just/RB
is/VBZ
n't/RB
done/VBN
./.
But/CC
employing/VBG
this/DT
kind/NN
of/IN
gut-wrenching/JJ
plea/NN
to/TO
black/JJ
consciousness/NN
makes/VBZ
it/PRP
even/RB
more/RBR
unusual/JJ
./.
Still/RB
,/,
Mr./NNP
Carew/NNP
thinks/VBZ
he/PRP
can/MD
reach/VB
a/DT
good/JJ
chunk/NN
of/IN
the/DT
three/CD
million-plus/JJ
black/JJ
homes/NNS
he/PRP
needs/VBZ
by/IN
mailing/VBG
to/TO
the/DT
almost/RB
10,000/CD
blacks/NNS
who/WP
form/VBP
what/WP
he/PRP
calls/VBZ
``/``
the/DT
grapevine/NN
./.
''/''
``/``
The/DT
grapevine/NN
is/VBZ
n't/RB
organized/VBN
,/,
but/CC
you/PRP
and/CC
I/PRP
know/VBP
it/PRP
exists/VBZ
,/,
''/''
says/VBZ
Mr./NNP
Carew/NNP
,/,
referring/VBG
to/TO
the/DT
often/RB
uncannily/RB
small/JJ
world/NN
of/IN
black/JJ
professionals/NNS
and/CC
community/NN
leaders/NNS
./.
``/``
This/DT
is/VBZ
a/DT
very/RB
personal/JJ
,/,
ethnic/JJ
style/NN
,/,
''/''
Mr./NNP
Carew/NNP
says/VBZ
./.
``/``
I/PRP
want/VBP
people/NNS
in/IN
the/DT
barber/NN
shops/NNS
and/CC
the/DT
beauty/NN
shops/NNS
and/CC
standing/VBG
in/IN
line/NN
at/IN
the/DT
rib/NN
joints/NNS
to/TO
be/VB
talking/VBG
about/IN
the/DT
show/NN
./.
I/PRP
want/VBP
white/JJ
America/NNP
to/TO
talk/VB
about/IN
it/PRP
,/,
too/RB
,/,
but/CC
I/PRP
'm/VBP
convinced/VBN
that/IN
the/DT
grapevine/NN
is/VBZ
what/WP
's/VBZ
happening/VBG
./.
''/''
ABC/NNP
says/VBZ
it/PRP
is/VBZ
aware/JJ
of/IN
the/DT
producers/NNS
'/POS
action/NN
,/,
but/CC
the/DT
mailing/NN
was/VBD
sent/VBN
without/IN
the/DT
network/NN
's/POS
blessing/NN
./.
The/DT
letter/NN
,/,
in/IN
fact/NN
,/,
takes/VBZ
a/DT
jab/NN
at/IN
ABC/NNP
for/IN
being/VBG
a/DT
laggard/NN
in/IN
black/JJ
programming/NN
./.
Meanwhile/RB
,/,
as/IN
the/DT
Sunday/NNP
evening/NN
show/NN
struggles/VBZ
to/TO
stay/VB
afloat/RB
against/IN
the/DT
tough/JJ
competition/NN
of/IN
``/``
Murder/NN
,/,
She/NN
Wrote/VBD
,/,
''/''
the/DT
grapevine/NN
idea/NN
is/VBZ
threatening/VBG
to/TO
turn/VB
into/IN
a/DT
weed/NN
:/:
The/DT
tactic/NN
apparently/RB
has/VBZ
inspired/VBN
sample/NN
viewings/NNS
,/,
but/CC
accolades/NNS
are/VBP
slow/JJ
in/IN
coming/VBG
./.
Doug/NNP
Alligood/NNP
,/,
a/DT
black/JJ
advertising/NN
executive/NN
who/WP
tracks/VBZ
black/JJ
viewing/VBG
patterns/NNS
,/,
gives/VBZ
the/DT
Carews/NNPS
an/DT
``/``
A/NN
''/''
for/IN
marketing/NN
moxie/NN
,/,
but/CC
is/VBZ
n't/RB
alone/RB
in/IN
his/PRP$
lukewarm/JJ
reaction/NN
./.
Some/DT
shows/NNS
just/RB
do/VBP
n't/RB
impress/VB
,/,
he/PRP
says/VBZ
,/,
and/CC
this/DT
is/VBZ
one/CD
of/IN
them/PRP
./.
TransCanada/NNP
PipeLines/NNPS
Ltd./NNP
said/VBD
it/PRP
plans/VBZ
to/TO
shift/VB
its/PRP$
headquarters/NNS
to/TO
Calgary/NNP
,/,
Alberta/NNP
,/,
from/IN
Toronto/NNP
next/JJ
year/NN
to/TO
cut/VB
costs/NNS
and/CC
be/VB
closer/JJR
to/TO
the/DT
upstream/JJ
natural-gas/NN
industry/NN
./.
Gerald/NNP
Maier/NNP
,/,
president/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
the/DT
natural-gas/JJ
pipeline/NN
and/CC
marketing/NN
concern/NN
,/,
said/VBD
the/DT
company/NN
's/POS
future/JJ
growth/NN
is/VBZ
``/``
increasingly/RB
linked/VBN
''/''
to/TO
decisions/NNS
made/VBN
by/IN
Calgary-based/JJ
gas/NN
producers/NNS
./.
``/``
Since/IN
deregulation/NN
of/IN
the/DT
market/NN
in/IN
1985/CD
,/,
producers/NNS
have/VBP
become/VBN
much/RB
more/RBR
intensely/RB
involved/VBN
in/IN
both/DT
transportation/NN
and/CC
marketing/NN
,/,
''/''
Mr./NNP
Maier/NNP
said/VBD
./.
``/``
It/PRP
's/VBZ
a/DT
matter/NN
of/IN
being/VBG
close/JJ
to/TO
those/DT
suppliers/NNS
;/:
many/JJ
of/IN
those/DT
companies/NNS
do/VBP
n't/RB
know/VB
us/PRP
as/RB
well/RB
as/IN
they/PRP
should/MD
./.
''/''
TransCanada/NNP
transports/VBZ
all/DT
gas/NN
that/WDT
moves/VBZ
eastward/RB
from/IN
Alberta/NNP
./.
That/DT
includes/VBZ
all/PDT
the/DT
gas/NN
consumed/VBN
in/IN
Ontario/NNP
and/CC
Quebec/NNP
,/,
along/IN
with/IN
the/DT
bulk/NN
of/IN
Canadian/JJ
gas/NN
exports/NNS
to/TO
the/DT
Walter/NNP
Litvinchuk/NNP
,/,
vice/NN
president/NN
of/IN
Pan-Alberta/NNP
Gas/NNP
Ltd./NNP
,/,
a/DT
Calgary-based/JJ
gas/NN
marketing/NN
concern/NN
,/,
said/VBD
the/DT
industry/NN
will/MD
welcome/VB
the/DT
move/NN
./.
``/``
Having/VBG
more/JJR
than/IN
a/DT
token/JJ
presence/NN
here/RB
should/MD
enhance/VB
communications/NNS
and/CC
business/NN
relationships/NNS
,/,
''/''
Mr./NNP
Litvinchuk/NNP
said/VBD
./.
``/``
Since/IN
the/DT
cost/NN
of/IN
transporting/VBG
gas/NN
is/VBZ
so/RB
important/JJ
to/TO
producers/NNS
'/POS
ability/NN
to/TO
sell/VB
it/PRP
,/,
it/PRP
helps/VBZ
to/TO
have/VB
input/NN
and/CC
access/NN
to/TO
transportation/NN
companies/NNS
./.
''/''
The/DT
move/NN
,/,
which/WDT
could/MD
cost/VB
TransCanada/NNP
as/RB
much/RB
as/IN
50/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
42.5/CD
million/CD
relocation/NN
and/CC
severance/NN
payments/NNS
,/,
should/MD
be/VB
complete/JJ
by/IN
next/JJ
summer/NN
,/,
Mr./NNP
Maier/NNP
said/VBD
./.
All/DT
700/CD
Toronto-based/JJ
employees/NNS
will/MD
be/VB
offered/VBN
positions/NNS
in/IN
Calgary/NNP
,/,
the/DT
company/NN
said/VBD
./.
The/DT
company/NN
will/MD
save/VB
between/IN
C$/$
4/CD
million/CD
and/CC
C$/$
6/CD
million/CD
annually/RB
in/IN
office/NN
expenses/NNS
and/CC
other/JJ
administrative/JJ
costs/NNS
by/IN
moving/VBG
to/TO
Calgary/NNP
,/,
Mr./NNP
Maier/NNP
added/VBD
./.
Part/NN
of/IN
both/PDT
the/DT
costs/NNS
and/CC
the/DT
savings/NNS
could/MD
be/VB
passed/VBN
on/IN
to/TO
shippers/NNS
on/IN
the/DT
TransCanada/NNP
pipeline/NN
through/IN
tolls/NNS
,/,
which/WDT
are/VBP
based/VBN
on/IN
the/DT
value/NN
of/IN
the/DT
pipeline/NN
system/NN
and/CC
the/DT
cost/NN
of/IN
operating/VBG
it/PRP
./.
TransCanada/NNP
is/VBZ
49.1/CD
%/NN
owned/VBN
by/IN
Montreal-based/JJ
holding/VBG
company/NN
BCE/NNP
Inc/NNP
./.
Since/IN
its/PRP$
founding/NN
in/IN
1818/CD
,/,
Brooks/NNP
Brothers/NNPS
,/,
the/DT
standard-bearer/NN
of/IN
the/DT
Ivy/NNP
League/NNP
look/NN
,/,
has/VBZ
eschewed/VBN
flashy/JJ
sales/NNS
promotions/NNS
and/CC
fashion/NN
trends/NNS
--/:
the/DT
rules/NNS
that/IN
most/JJS
retailers/NNS
live/VBP
by/IN
./.
But/CC
with/IN
sales/NNS
growth/NN
sluggish/JJ
and/CC
other/JJ
men/NNS
's/POS
stores/NNS
putting/VBG
on/IN
the/DT
heat/NN
,/,
the/DT
venerable/JJ
retailer/NN
can/MD
no/RB
longer/RB
afford/VB
such/PDT
a/DT
smug/JJ
attitude/NN
./.
So/RB
two/CD
weeks/NNS
ago/IN
,/,
thousands/NNS
of/IN
Brooks/NNP
Brothers/NNPS
charge/VBP
customers/NNS
--/:
customers/NNS
conditioned/VBN
to/TO
wait/VB
for/IN
twice-yearly/JJ
clearance/NN
sales/NNS
--/:
got/VBD
a/DT
surprise/NN
:/:
an/DT
invitation/NN
to/TO
come/VB
in/IN
and/CC
buy/VB
any/DT
one/CD
item/NN
for/IN
25/CD
%/NN
off/IN
./.
During/IN
the/DT
four-day/JJ
promotion/NN
,/,
shoppers/NNS
at/IN
the/DT
Short/NNP
Hills/NNP
,/,
N.J./NNP
,/,
store/NN
lined/VBD
up/IN
to/TO
pay/VB
for/IN
big-ticket/JJ
items/NNS
like/IN
coats/NNS
and/CC
suits/NNS
./.
That/DT
's/VBZ
not/RB
all/DT
./.
Departing/VBG
from/IN
its/PRP$
newspaper/NN
ads/NNS
featuring/VBG
prim/JJ
sketches/NNS
of/IN
a/DT
suit/NN
or/CC
a/DT
coat/NN
,/,
Brooks/NNP
Brothers/NNPS
is/VBZ
marketing/VBG
an/DT
updated/VBN
image/NN
in/IN
a/DT
new/JJ
campaign/NN
that/WDT
carries/VBZ
the/DT
slogan/NN
,/,
``/``
The/DT
Surprise/NNP
of/IN
Brooks/NNP
Brothers/NNPS
./.
''/''
One/CD
color/NN
photo/NN
displays/VBZ
a/DT
rainbow/NN
of/IN
dress/NN
shirts/NNS
tied/VBN
in/IN
a/DT
knot/NN
;/:
another/DT
picture/NN
shows/VBZ
neckties/NNS
with/IN
bold/JJ
designs/NNS
./.
The/DT
message/NN
is/VBZ
loud/JJ
and/CC
clear/JJ
:/:
This/DT
is/VBZ
not/RB
your/PRP$
father/NN
's/POS
Brooks/NNP
Brothers/NNPS
./.
As/IN
part/NN
of/IN
its/PRP$
national/JJ
ad/NN
pitch/NN
,/,
Brooks/NNP
Brothers/NNPS
will/MD
show/VB
less/RBR
preppy/JJ
women/NNS
's/POS
clothes/NNS
,/,
moving/VBG
away/RB
from/IN
its/PRP$
floppy-tie/JJ
business/NN
stereotype/NN
./.
One/CD
ad/NN
shows/VBZ
a/DT
bright/JJ
red/JJ
jacket/NN
paired/VBN
with/IN
a/DT
black/JJ
leather/NN
skirt/NN
./.
And/CC
the/DT
ad/NN
copy/NN
is/VBZ
cheeky/JJ
:/:
``/``
How/WRB
can/MD
you/PRP
be/VB
a/DT
Wall/NNP
Street/NNP
hot/JJ
shot/NN
without/IN
at/IN
least/JJS
one/CD
Brooks/NNP
Brothers/NNPS
suit/NN
in/IN
your/PRP$
portfolio/NN
?/.
''/''
Brooks/NNP
Brothers/NNPS
hopes/VBZ
that/IN
shaking/VBG
its/PRP$
time-honored/JJ
traditions/NNS
will/MD
attract/VB
more/RBR
young/JJ
men/NNS
and/CC
more/JJR
women/NNS
and/CC
change/VB
consumer/NN
perceptions/NNS
about/IN
its/PRP$
range/NN
of/IN
merchandise/NN
./.
``/``
We/PRP
have/VBP
men/NNS
who/WP
only/RB
buy/VBP
their/PRP$
shirts/NNS
and/CC
underwear/NN
here/RB
or/CC
younger/JJR
customers/NNS
who/WP
only/RB
buy/VBP
their/PRP$
job/NN
interview/NN
suit/NN
here/RB
,/,
''/''
says/VBZ
William/NNP
Roberti/NNP
,/,
chairman/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
Brooks/NNP
Brothers/NNPS
./.
``/``
We/PRP
want/VBP
them/PRP
to/TO
buy/VB
more/JJR
of/IN
their/PRP$
wardrobe/NN
here/RB
./.
''/''
Industry/NN
watchers/NNS
agree/VBP
that/IN
Brooks/NNP
Brothers/NNPS
is/VBZ
long/RB
overdue/JJ
in/IN
updating/VBG
its/PRP$
buttoned-down/JJ
image/NN
,/,
which/WDT
has/VBZ
stunted/VBN
its/PRP$
growth/NN
./.
When/WRB
acquired/VBN
in/IN
May/NNP
1988/CD
by/IN
British/JJ
retailer/NN
Marks/NNP
&/CC
Spencer/NNP
PLC/NNP
,/,
Brooks/NNP
Brothers/NNPS
'/POS
annual/JJ
operating/VBG
profit/NN
was/VBD
about/IN
$/$
41.8/CD
million/CD
on/IN
sales/NNS
of/IN
$/$
290.1/CD
million/CD
./.
Mr./NNP
Roberti/NNP
concedes/VBZ
that/IN
since/IN
the/DT
$/$
750/CD
million/CD
takeover/NN
,/,
``/``
sales/NNS
growth/NN
has/VBZ
n't/RB
been/VBN
dramatic/JJ
./.
''/''
For/IN
the/DT
11/CD
months/NNS
ended/VBD
March/NNP
31/CD
,/,
operating/VBG
profit/NN
at/IN
the/DT
52-store/JJ
chain/NN
totaled/VBD
$/$
40.5/CD
million/CD
on/IN
sales/NNS
of/IN
$/$
286.8/CD
million/CD
./.
As/IN
Brooks/NNP
Brothers/NNPS
jumps/VBZ
into/IN
the/DT
fashion/NN
fray/NN
,/,
it/PRP
will/MD
be/VB
playing/VBG
catch/VB
up/IN
./.
Many/JJ
clothiers/NNS
,/,
especially/RB
Ralph/NNP
Lauren/NNP
,/,
have/VBP
cashed/VBN
in/IN
on/IN
the/DT
recent/JJ
popularity/NN
of/IN
updated/VBN
Ivy/NNP
League/NNP
and/CC
English/JJ
styles/NNS
./.
In/IN
keeping/VBG
with/IN
men/NNS
's/POS
broader/JJR
fashion/NN
scope/NN
today/NN
,/,
businessmen/NNS
are/VBP
dabbling/VBG
in/IN
English/JJ
and/CC
Italian/JJ
suits/NNS
that/WDT
are/VBP
conservative/JJ
but/CC
not/RB
stodgy/JJ
./.
The/DT
rigid/JJ
Ivy/NNP
League/NNP
customer/NN
,/,
Brooks/NNP
Brothers/NNPS
'/POS
bread/NN
and/CC
butter/NN
,/,
meanwhile/RB
is/VBZ
becoming/VBG
extinct/JJ
./.
Thus/RB
,/,
Brooks/NNP
Brothers/NNPS
has/VBZ
lost/VBN
customers/NNS
to/TO
stores/NNS
that/WDT
offer/VBP
more/JJR
variety/NN
such/JJ
as/IN
Paul/NNP
Stuart/NNP
,/,
Barneys/NNP
New/NNP
York/NNP
and/CC
Louis/NNP
,/,
Boston/NNP
./.
``/``
Brooks/NNP
Brothers/NNPS
no/RB
longer/RB
has/VBZ
a/DT
lock/NN
on/IN
the/DT
Ivy/NNP
League/NNP
customer/NN
who/WP
is/VBZ
status-conscious/JJ
about/IN
his/PRP$
clothes/NNS
,/,
''/''
says/VBZ
Charlie/NNP
Davidson/NNP
,/,
president/NN
of/IN
the/DT
Andover/NNP
Shop/NNP
,/,
a/DT
traditional/JJ
men/NNS
's/POS
store/NN
in/IN
Cambridge/NNP
,/,
Mass/NNP
./.
By/IN
making/VBG
a/DT
break/NN
from/IN
tradition/NN
,/,
Brooks/NNP
Brothers/NNPS
is/VBZ
seeking/VBG
a/DT
delicate/JJ
balance/NN
./.
If/IN
it/PRP
promotes/VBZ
fashion/NN
too/RB
much/JJ
,/,
the/DT
shop/NN
risks/VBZ
alienating/VBG
its/PRP$
old-line/NN
customers/NNS
;/:
by/IN
emphasizing/VBG
``/``
value/NN
,/,
''/''
it/PRP
risks/VBZ
watering/VBG
down/RP
its/PRP$
high-minded/JJ
mystique/NN
./.
Fashion/NN
industry/NN
consultants/NNS
also/RB
question/VBP
whether/IN
the/DT
company/NN
can/MD
make/VB
significant/JJ
strides/NNS
in/IN
its/PRP$
women/NNS
's/POS
business/NN
,/,
given/VBN
that/IN
its/PRP$
customer/NN
base/NN
is/VBZ
less/RBR
established/VBN
and/CC
that/IN
conservative/JJ
business/NN
dress/NN
for/IN
women/NNS
is/VBZ
on/IN
the/DT
decline/NN
./.
Brooks/NNP
Brothers/NNPS
'/POS
aim/NN
is/VBZ
for/IN
20/CD
%/NN
of/IN
total/JJ
sales/NNS
to/TO
come/VB
from/IN
the/DT
women/NNS
's/POS
department/NN
,/,
up/RB
from/IN
the/DT
current/JJ
12/CD
%/NN
./.
``/``
Everybody/NN
forgets/VBZ
that/IN
there/EX
are/VBP
fashion/NN
cycles/NNS
in/IN
classic/JJ
merchandise/NN
,/,
''/''
observes/VBZ
Carol/NNP
Farmer/NNP
,/,
a/DT
retail/JJ
consultant/NN
./.
``/``
For/IN
women/NNS
,/,
dressing/VBG
for/IN
success/NN
in/IN
a/DT
real/JJ
structured/JJ
way/NN
is/VBZ
over/IN
./.
''/''
Despite/IN
these/DT
challenges/NNS
,/,
Marks/NNP
&/CC
Spencer/NNP
sees/VBZ
big/JJ
potential/NN
in/IN
Brooks/NNP
Brothers/NNPS
,/,
noting/VBG
the/DT
widely/RB
recognized/VBN
name/NN
and/CC
global/JJ
presence/NN
./.
Marks/NNP
&/CC
Spencer/NNP
plans/VBZ
to/TO
open/VB
roughly/RB
18/CD
more/JJR
U.S./NNP
stores/NNS
in/IN
the/DT
next/JJ
five/CD
years/NNS
./.
Brooks/NNP
Brothers/NNPS
says/VBZ
business/NN
is/VBZ
robust/JJ
at/IN
its/PRP$
30/CD
outlets/NNS
in/IN
Japan/NNP
and/CC
two/CD
shops/NNS
in/IN
Hong/NNP
Kong/NNP
./.
Marks/NNP
&/CC
Spencer/NNP
is/VBZ
also/RB
considering/VBG
opening/VBG
stores/NNS
across/IN
Europe/NNP
sometime/RB
in/IN
the/DT
future/NN
./.
Alan/NNP
Smith/NNP
,/,
president/NN
of/IN
Marks/NNP
&/CC
Spencer/NNP
North/NNP
America/NNP
and/CC
Far/NNP
East/NNP
,/,
says/VBZ
that/IN
Brooks/NNP
Brothers/NNPS
'/POS
focus/NN
is/VBZ
to/TO
boost/VB
sales/NNS
by/IN
broadening/VBG
its/PRP$
merchandise/NN
assortment/NN
while/IN
keeping/VBG
its/PRP$
``/``
traditional/JJ
emphasis/NN
./.
''/''
The/DT
British/JJ
parent/NN
is/VBZ
also/RB
streamlining/VBG
:/:
Brooks/NNP
Brothers/NNPS
,/,
which/WDT
continues/VBZ
to/TO
make/VB
almost/RB
all/DT
of/IN
its/PRP$
merchandise/NN
,/,
recently/RB
shut/VBD
one/CD
of/IN
its/PRP$
two/CD
shirt/NN
plants/NNS
in/IN
Paterson/NNP
,/,
N.J./NNP
,/,
and/CC
has/VBZ
closed/VBN
boys/NNS
'/POS
departments/NNS
in/IN
all/DT
but/CC
20/CD
stores/NNS
./.
Brooks/NNP
Brothers/NNPS
is/VBZ
also/RB
remodeling/VBG
its/PRP$
stores/NNS
./.
Wednesday/NNP
,/,
it/PRP
will/MD
unveil/VB
a/DT
$/$
7/CD
million/CD
refurbishing/NN
at/IN
its/PRP$
flagship/NN
store/NN
on/IN
Madison/NNP
Avenue/NNP
./.
With/IN
newly/RB
installed/VBN
escalators/NNS
,/,
the/DT
store/NN
retains/VBZ
its/PRP$
signature/NN
wood-and-brass/NN
look/NN
but/CC
is/VBZ
less/RBR
intimidating/VBG
./.
More/JJR
shirts/NNS
and/CC
sweaters/NNS
will/MD
be/VB
laid/VBN
out/IN
on/IN
tables/NNS
,/,
instead/RB
of/IN
sitting/VBG
behind/IN
glass/NN
cases/NNS
,/,
so/IN
that/IN
customers/NNS
can/MD
``/``
walk/VB
up/IN
and/CC
touch/VB
them/PRP
,/,
''/''
Mr./NNP
Roberti/NNP
says/VBZ
./.
Because/IN
the/DT
biggest/JJS
growth/NN
in/IN
menswear/NN
is/VBZ
in/IN
casual/JJ
sportswear/NN
,/,
Brooks/NNP
Brothers/NNPS
is/VBZ
chasing/VBG
more/JJR
of/IN
that/DT
business/NN
./.
The/DT
entire/JJ
second/JJ
floor/NN
of/IN
its/PRP$
Madison/NNP
Avenue/NNP
store/NN
is/VBZ
now/RB
casual/JJ
sportswear/NN
featuring/VBG
items/NNS
such/JJ
as/IN
ski/JJ
sweaters/NNS
,/,
leather/NN
backpacks/NNS
and/CC
a/DT
$/$
42/CD
wool/NN
baseball/NN
hat/NN
with/IN
the/DT
store/NN
's/POS
crest/NN
./.
The/DT
centerpiece/NN
of/IN
the/DT
overhaul/NN
,/,
according/VBG
to/TO
Mr./NNP
Roberti/NNP
,/,
is/VBZ
the/DT
men/NNS
's/POS
tailored/VBN
clothing/NN
department/NN
,/,
where/WRB
Brooks/NNP
Brothers/NNPS
has/VBZ
added/VBN
new/JJ
suit/NN
styles/NNS
and/CC
fabrics/NNS
./.
``/``
The/DT
perception/NN
out/IN
there/RB
is/VBZ
that/IN
we/PRP
are/VBP
very/RB
conservative/JJ
and/CC
we/PRP
only/RB
sell/VB
one/CD
type/NN
of/IN
suit/NN
,/,
''/''
Mr./NNP
Roberti/NNP
says/VBZ
,/,
referring/VBG
to/TO
Brooks/NNP
Brothers/NNPS
'/POS
signature/NN
three-button/JJ
``/``
sack/NN
suit/NN
,/,
''/''
with/IN
a/DT
center-vented/JJ
jacket/NN
and/CC
boxy/JJ
fit/NN
./.
But/CC
it/PRP
now/RB
offers/VBZ
more/RBR
two-button/JJ
versions/NNS
and/CC
suits/NNS
with/IN
a/DT
tapered/JJ
fit/NN
./.
It/PRP
also/RB
plans/VBZ
to/TO
add/VB
suits/NNS
cut/VBN
for/IN
athletic/JJ
men/NNS
with/IN
broader/JJR
upper/JJ
bodies/NNS
./.
Next/JJ
spring/NN
,/,
nearly/RB
30/CD
%/NN
of/IN
its/PRP$
suits/NNS
will/MD
have/VB
pleated/JJ
pants/NNS
,/,
compared/VBN
with/IN
virtually/RB
none/NN
a/DT
couple/NN
of/IN
years/NNS
ago/IN
./.
Says/VBZ
Mr./NNP
Roberti/NNP
:/:
``/``
We/PRP
want/VBP
to/TO
turn/VB
the/DT
customer/NN
on/RP
./.
''/''
Ferro/NNP
Corp./NNP
said/VBD
it/PRP
will/MD
buy/VB
back/RB
as/RB
many/JJ
as/IN
one/CD
million/CD
common/JJ
shares/NNS
./.
The/DT
maker/NN
of/IN
chemical/NN
and/CC
industrial/JJ
materials/NNS
did/VBD
n't/RB
say/VB
how/WRB
much/JJ
it/PRP
would/MD
pay/VB
or/CC
when/WRB
it/PRP
would/MD
make/VB
the/DT
transactions/NNS
./.
Ferro/NNP
also/RB
said/VBD
it/PRP
would/MD
cancel/VB
the/DT
unused/JJ
portion/NN
of/IN
a/DT
1987/CD
buy-back/NN
plan/NN
for/IN
administrative/JJ
reasons/NNS
./.
The/DT
plan/NN
calls/VBZ
for/IN
the/DT
company/NN
to/TO
buy/VB
back/RB
2,250,000/CD
shares/NNS
,/,
which/WDT
reflects/VBZ
a/DT
3-for-2/JJ
stock/NN
split/NN
this/DT
year/NN
./.
So/IN
far/RB
the/DT
company/NN
had/VBD
bought/VBN
back/RB
1.6/CD
million/CD
shares/NNS
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
Friday/NNP
,/,
Ferro/NNP
closed/VBD
at/IN
$/$
25.25/CD
,/,
down/RB
50/CD
cents/NNS
./.
Arthur/NNP
Price/NNP
abruptly/RB
quit/VBD
as/IN
president/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
MTM/NNP
Entertainment/NNP
Inc./NNP
,/,
a/DT
Los/NNP
Angeles/NNP
production/NN
company/NN
that/WDT
has/VBZ
fallen/VBN
on/IN
hard/JJ
times/NNS
./.
Mr./NNP
Price/NNP
,/,
61/CD
years/NNS
old/JJ
,/,
also/RB
stepped/VBD
down/IN
from/IN
the/DT
board/NN
of/IN
TVS/NNP
Entertainment/NNP
PLC/NNP
,/,
the/DT
British/JJ
TV/NN
company/NN
that/IN
last/JJ
year/NN
bought/VBD
MTM/NNP
,/,
producer/NN
of/IN
such/JJ
TV/NN
programs/NNS
as/IN
``/``
Hill/NNP
Street/NNP
Blues/NNP
''/''
and/CC
``/``
The/NNP
Mary/NNP
Tyler/NNP
Moore/NNP
Show/NNP
./.
''/''
A/DT
TVS/NNP
spokesman/NN
said/VBD
he/PRP
did/VBD
n't/RB
know/VB
Mr./NNP
Price/NNP
's/POS
plans/NNS
./.
James/NNP
Gatward/NNP
,/,
TVS/NNP
's/POS
chief/NN
executive/NN
,/,
said/VBD
in/IN
a/DT
statement/NN
that/IN
he/PRP
will/MD
``/``
assume/VB
overall/JJ
responsibility/NN
''/''
for/IN
MTM/NNP
's/POS
operations/NNS
until/IN
a/DT
successor/NN
is/VBZ
named/VBN
./.
Industry/NN
analysts/NNS
speculated/VBD
that/IN
Mr./NNP
Price/NNP
's/POS
sudden/JJ
departure/NN
may/MD
have/VB
stemmed/VBN
from/IN
conflicts/NNS
with/IN
Mr./NNP
Gatward/NNP
./.
Mr./NNP
Price/NNP
``/``
wanted/VBD
to/TO
run/VB
the/DT
MTM/NNP
business/NN
''/''
and/CC
may/MD
have/VB
regretted/VBN
selling/VBG
the/DT
company/NN
to/TO
TVS/NNP
,/,
suggested/VBD
Charles/NNP
Denton/NNP
,/,
managing/VBG
director/NN
of/IN
Zenith/NNP
Productions/NNPS
,/,
a/DT
subsidiary/NN
of/IN
Carlton/NNP
Communications/NNP
PLC/NNP
,/,
London/NNP
./.
Mr./NNP
Gatward/NNP
declined/VBD
to/TO
comment/VB
,/,
and/CC
Mr./NNP
Price/NNP
could/MD
n't/RB
be/VB
reached/VBN
on/IN
Friday/NNP
./.
In/IN
the/DT
TVS/NNP
statement/NN
,/,
Mr./NNP
Price/NNP
said/VBD
``/``
leaving/VBG
MTM/NNP
was/VBD
a/DT
very/RB
difficult/JJ
decision/NN
,/,
''/''
but/CC
added/VBD
that/IN
``/``
it/PRP
is/VBZ
now/RB
time/NN
for/IN
a/DT
change/NN
.../:
./.
''/''
The/DT
$/$
320/CD
million/CD
purchase/NN
of/IN
MTM/NNP
represented/VBD
an/DT
audacious/JJ
international/JJ
move/NN
for/IN
TVS/NNP
,/,
which/WDT
then/RB
was/VBD
about/IN
half/PDT
the/DT
U.S./NNP
concern/NN
's/POS
size/NN
./.
At/IN
the/DT
time/NN
,/,
Mr./NNP
Gatward/NNP
said/VBD
his/PRP$
friendship/NN
with/IN
Mr./NNP
Price/NNP
had/VBD
smoothed/VBN
the/DT
way/NN
for/IN
its/PRP$
link/NN
with/IN
the/DT
small/JJ
British/JJ
company/NN
./.
But/CC
TVS/NNP
stunned/VBD
industry/NN
analysts/NNS
last/JJ
month/NN
by/IN
disclosing/VBG
that/IN
it/PRP
expected/VBD
MTM/NNP
to/TO
post/VB
an/DT
operating/NN
loss/NN
for/IN
this/DT
year/NN
./.
In/IN
that/DT
announcement/NN
,/,
TVS/NNP
also/RB
said/VBD
it/PRP
was/VBD
trimming/VBG
production/NN
finance/NN
and/CC
hiring/VBG
a/DT
new/JJ
U.S./NNP
sales/NNS
manager/NN
./.
Mr./NNP
Gatward/NNP
has/VBZ
spent/VBN
a/DT
lot/NN
of/IN
time/NN
since/IN
late/JJ
September/NNP
at/IN
MTM/NNP
's/POS
headquarters/NN
;/:
he/PRP
eliminated/VBD
three/CD
departments/NNS
and/CC
fired/VBD
six/CD
executives/NNS
,/,
according/VBG
to/TO
the/DT
TVS/NNP
spokesman/NN
./.
Further/JJ
staff/NN
cuts/NNS
are/VBP
likely/JJ
,/,
the/DT
spokesman/NN
indicated/VBD
./.
``/``
Obviously/RB
,/,
we/PRP
are/VBP
looking/VBG
at/IN
making/VBG
economies/NNS
across/IN
the/DT
board/NN
./.
''/''
TVS/NNP
blames/VBZ
difficulties/NNS
in/IN
peddling/JJ
reruns/NNS
of/IN
MTM/NNP
shows/NNS
to/TO
U.S./NNP
broadcasters/NNS
for/IN
the/DT
problems/NNS
at/IN
MTM/NNP
./.
The/DT
market/NN
for/IN
reruns/NNS
sold/VBN
to/TO
local/JJ
U.S./NNP
broadcasters/NNS
has/VBZ
been/VBN
weak/JJ
for/IN
the/DT
past/JJ
three/CD
or/CC
four/CD
seasons/NNS
./.
Mr./NNP
Price/NNP
co-founded/VBD
MTM/NNP
in/IN
1969/CD
with/IN
U.S./NNP
actress/NN
Mary/NNP
Tyler/NNP
Moore/NNP
and/CC
Grant/NNP
Tinker/NNP
,/,
her/PRP$
then-husband/NN
./.
Mr./NNP
Tinker/NNP
later/RB
left/VBD
to/TO
become/VB
chairman/NN
of/IN
National/NNP
Broadcasting/NNP
Co/NNP
./.
The/DT
TVS/NNP
spokesman/NN
said/VBD
Mr./NNP
Price/NNP
still/RB
holds/VBZ
about/IN
an/DT
8/CD
%/NN
TVS/NNP
stake/NN
,/,
acquired/VBD
as/IN
part/NN
of/IN
the/DT
MTM/NNP
acquisition/NN
./.
In/IN
late/RB
trading/NN
on/IN
London/NNP
's/POS
Stock/NNP
Exchange/NNP
Friday/NNP
,/,
TVS/NNP
shares/NNS
rose/VBD
four/CD
pence/NN
to/TO
195/CD
pence/NN
a/DT
share/NN
./.
Two/CD
rival/JJ
bidders/NNS
for/IN
Connaught/NNP
BioSciences/NNPS
extended/VBD
their/PRP$
offers/NNS
to/TO
acquire/VB
the/DT
Toronto-based/JJ
vaccine/NN
manufacturer/NN
Friday/NNP
./.
Institut/NNP
Merieux/NNP
S.A./NNP
,/,
which/WDT
offered/VBD
942/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
801.2/CD
million/CD
C$/$
37/CD
a/DT
share/NN
for/IN
Connaught/NNP
,/,
said/VBD
it/PRP
would/MD
extend/VB
its/PRP$
bid/NN
,/,
due/JJ
to/TO
expire/VB
last/JJ
Thursday/NNP
,/,
to/TO
Nov./NNP
6/CD
./.
A/DT
C$/$
30-a-share/JJ
bid/NN
by/IN
Ciba-Geigy/NNP
Ltd./NNP
,/,
a/DT
pharmaceutical/JJ
company/NN
based/VBN
in/IN
Basel/NNP
,/,
Switzerland/NNP
,/,
and/CC
California-based/JJ
Chiron/NNP
Corp./NNP
,/,
a/DT
bioresearch/NN
concern/NN
,/,
was/VBD
extended/VBN
to/TO
Nov./NNP
16/CD
./.
It/PRP
had/VBD
been/VBN
due/JJ
to/TO
expire/VB
Friday/NNP
evening/NN
./.
Merieux/NNP
previously/RB
said/VBD
it/PRP
would/MD
ensure/VB
its/PRP$
bid/NN
remained/VBD
open/JJ
pending/VBG
a/DT
final/JJ
decision/NN
by/IN
Canadian/JJ
regulators/NNS
on/IN
whether/IN
to/TO
approve/VB
the/DT
takeover/NN
./.
Merieux/NNP
,/,
a/DT
vaccine/NN
and/CC
bioresearch/NN
firm/NN
based/VBN
in/IN
Lyon/NNP
,/,
France/NNP
,/,
is/VBZ
controlled/VBN
50.1/CD
%/NN
by/IN
state-owned/JJ
Rhone/NNP
Poulenc/NNP
S.A/NNP
./.
The/DT
Canadian/JJ
government/NN
previously/RB
said/VBD
Merieux/NNP
's/POS
bid/NN
did/VBD
n't/RB
offer/VB
enough/RB
``/``
net/JJ
benefit/NN
''/''
to/TO
Canada/NNP
to/TO
be/VB
approved/VBN
,/,
and/CC
gave/VBD
Merieux/NNP
an/DT
until/IN
mid-November/NNP
to/TO
submit/VB
additional/JJ
information/NN
./.
Merieux/NNP
officials/NNS
said/VBD
last/JJ
week/NN
that/IN
they/PRP
are/VBP
``/``
highly/RB
confident/JJ
''/''
the/DT
offer/NN
will/MD
be/VB
approved/VBN
once/IN
it/PRP
submits/VBZ
details/NNS
of/IN
its/PRP$
proposed/VBN
investments/NNS
to/TO
federal/JJ
regulators/NNS
./.
Both/DT
offers/NNS
are/VBP
conditional/JJ
on/IN
regulatory/JJ
approvals/NNS
and/CC
enough/JJ
shares/NNS
being/VBG
tendered/VBN
to/TO
give/VB
the/DT
bidders/NNS
a/DT
majority/NN
of/IN
Connaught/NNP
's/POS
shares/NNS
outstanding/JJ
./.
Institut/NNP
Merieux/NNP
,/,
which/WDT
already/RB
holds/VBZ
a/DT
12.5/CD
%/NN
stake/NN
in/IN
Connaught/NNP
,/,
said/VBD
that/IN
at/IN
the/DT
close/NN
of/IN
business/NN
Thursday/NNP
,/,
5,745,188/CD
shares/NNS
of/IN
Connaught/NNP
and/CC
C$/$
44.3/CD
million/CD
face/NN
amount/NN
of/IN
debentures/NNS
,/,
convertible/JJ
into/IN
1,826,596/CD
common/JJ
shares/NNS
,/,
had/VBD
been/VBN
tendered/VBN
to/TO
its/PRP$
offer/NN
./.
At/IN
the/DT
close/NN
of/IN
business/NN
Thursday/NNP
,/,
Ciba-Geigy/NNP
and/CC
Chiron/NNP
said/VBD
11,580/CD
common/JJ
shares/NNS
had/VBD
been/VBN
tendered/VBN
to/TO
their/PRP$
offer/NN
./.
At/IN
last/JJ
report/NN
,/,
Connaught/NNP
had/VBD
21.8/CD
million/CD
shares/NNS
outstanding/JJ
./.
Separately/RB
,/,
the/DT
Ontario/NNP
Supreme/NNP
Court/NNP
said/VBD
it/PRP
will/MD
postpone/VB
indefinitely/RB
a/DT
ruling/NN
on/IN
the/DT
lawsuit/NN
launched/VBN
by/IN
the/DT
University/NNP
of/IN
Toronto/NNP
against/IN
Connaught/NNP
in/IN
connection/NN
with/IN
the/DT
Merieux/NNP
bid/NN
./.
In/IN
a/DT
statement/NN
prepared/VBN
by/IN
lawyers/NNS
for/IN
the/DT
university/NN
and/CC
Connaught/NNP
,/,
the/DT
parties/NNS
said/VBD
they/PRP
agreed/VBD
that/IN
as/IN
a/DT
result/NN
of/IN
reaching/VBG
a/DT
C/$
415/CD
million/CD
research/NN
accord/NN
,/,
``/``
It/PRP
is/VBZ
unnecessary/JJ
that/IN
there/EX
be/VB
a/DT
judgment/NN
on/IN
the/DT
merits/NNS
the/DT
case/NN
this/DT
time/NN
./.
''/''
Lawyers/NNS
for/IN
the/DT
two/CD
sides/NNS
were/VBD
n't/RB
immediately/RB
available/JJ
for/IN
comment/NN
./.
The/DT
university/NN
had/VBD
sought/VBN
an/DT
injunction/NN
blocking/VBG
Connaught/NNP
's/POS
board/NN
from/IN
recommending/VBG
or/CC
supporting/VBG
an/DT
offer/NN
for/IN
the/DT
company/NN
by/IN
Merieux/NNP
./.
Conseco/NNP
Inc./NNP
said/VBD
it/PRP
is/VBZ
calling/VBG
for/IN
the/DT
redemption/NN
on/IN
Dec./NNP
7/CD
of/IN
all/PDT
the/DT
800,000/CD
remaining/VBG
shares/NNS
outstanding/JJ
of/IN
its/PRP$
$/$
1.875/CD
Series/NNP
A/NNP
convertible/JJ
preferred/VBN
stock/NN
at/IN
$/$
26.805/CD
a/DT
share/NN
./.
The/DT
insurance/NN
concern/NN
said/VBD
all/DT
conversion/NN
rights/NNS
on/IN
the/DT
stock/NN
will/MD
terminate/VB
on/IN
Nov./NNP
30/CD
./.
Until/IN
then/RB
,/,
Conseco/NNP
said/VBD
the/DT
stock/NN
remains/VBZ
convertible/JJ
into/IN
common/JJ
stock/NN
at/IN
the/DT
rate/NN
of/IN
1.439/CD
shares/NNS
of/IN
common/JJ
stock/NN
for/IN
each/DT
share/NN
of/IN
preferred/VBN
stock/NN
,/,
which/WDT
is/VBZ
equivalent/JJ
to/TO
a/DT
conversion/NN
price/NN
of/IN
$/$
17.50/CD
a/DT
common/JJ
share/NN
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
trading/NN
Friday/NNP
,/,
Conseco/NNP
closed/VBD
at/IN
$/$
19.50/CD
,/,
down/RB
25/CD
cents/NNS
./.
Centerior/NNP
Energy/NNP
Corp./NNP
said/VBD
the/DT
Ohio/NNP
Water/NNP
Development/NNP
Authority/NNP
approved/VBD
terms/NNS
for/IN
two/CD
series/NNS
of/IN
tax-exempt/JJ
bonds/NNS
to/TO
finance/VB
a/DT
water-pollution/NN
control/NN
and/CC

solid-waste/NN
disposal/NN
facilities/NNS
./.
The/DT
authority/NN
will/MD
issue/VB
a/DT
total/NN
of/IN
$/$
446.5/CD
million/CD
of/IN
pollution-control/JJ
revenue/NN
bonds/NNS
./.
Proceeds/NNS
of/IN
the/DT
sale/NN
will/MD
go/VB
to/TO
Centerior/NNP
's/POS
operating/VBG
subsidiaries/NNS
to/TO
finance/VB
the/DT
projects/NNS
,/,
located/VBN
at/IN
a/DT
nuclear/JJ
unit/NN
located/VBN
near/IN
Cleveland/NNP
./.
The/DT
bonds/NNS
will/MD
be/VB
issued/VBN
for/IN
a/DT
term/NN
of/IN
34/CD
years/NNS
at/IN
an/DT
interest/NN
rate/NN
of/IN
8/CD
%/NN
./.
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
is/VBZ
the/DT
underwriter/NN
./.
General/NNP
Motors/NNPS
Corp./NNP
's/POS
GMC/NNP
Truck/NNP
division/NN
put/VBD
a/DT
$/$
750/CD
cash/NN
incentive/NN
on/IN
its/PRP$
1990/CD
full-sized/JJ
Jimmy/NNP
and/CC
Suburban/NNP
trucks/NNS
./.
The/DT
program/NN
,/,
which/WDT
runs/VBZ
through/IN
Jan./NNP
4/CD
,/,
also/RB
offers/VBZ
low-rate/JJ
financing/NN
in/IN
lieu/NN
of/IN
the/DT
cash/NN
rebate/NN
./.
After/IN
days/NNS
of/IN
intense/JJ
but/CC
fruitless/JJ
negotiations/NNS
,/,
a/DT
federal/JJ
judge/NN
last/JJ
week/NN
threatened/VBD
to/TO
convert/VB
William/NNP
Herbert/NNP
Hunt/NNP
's/POS
Chapter/NN
11/CD
personal/JJ
bankruptcy/NN
case/NN
into/IN
a/DT
Chapter/NN
7/CD

liquidation/NN
./.
Judge/NNP
Harold/NNP
C./NNP
Abramson/NNP
raised/VBD
the/DT
possibility/NN
after/IN
talks/NNS
to/TO
end/VB
a/DT
feud/NN
between/IN
two/CD
major/JJ
creditors/NNS
failed/VBD
and/CC
all/DT
three/CD
reorganization/NN
plans/NNS
in/IN
the/DT
case/NN
ran/VBD
into/IN
roadblocks/NNS
./.
If/IN
the/DT
case/NN
is/VBZ
converted/VBN
to/TO
Chapter/NN
7/CD
,/,
what/WP
remains/VBZ
of/IN
the/DT
oil/NN
tycoon/NN
's/POS
once-vast/JJ
estate/NN
--/:
now/RB
believed/VBN
to/TO
have/VB
a/DT
value/NN
of/IN
less/JJR
than/IN
$/$
125/CD
million/CD
--/:
would/MD
be/VB
sold/VBN
off/IN
quickly/RB
with/IN
most/JJS
of/IN
the/DT
proceeds/NNS
going/VBG
to/TO
the/DT
Internal/NNP
Revenue/NNP
Service/NNP
,/,
whose/WP$
claim/NN
for/IN
$/$
300/CD
million/CD
in/IN
back/JJ
taxes/NNS
has/VBZ
priority/NN
in/IN
the/DT
case/NN
./.
Hundreds/NNS
of/IN
smaller/JJR
creditors/NNS
could/MD
get/VB
nothing/NN
,/,
according/VBG
to/TO
attorneys/NNS
involved/VBN
./.
While/IN
admitting/VBG
such/PDT
a/DT
move/NN
would/MD
be/VB
``/``
devastating/VBG
''/''
to/TO
most/JJS
creditors/NNS
,/,
Judge/NNP
Abramson/NNP
told/VBD
a/DT
courtroom/NN
filled/VBN
with/IN
nearly/RB
two/CD
dozen/NN
attorneys/NNS
that/IN
he/PRP
was/VBD
concerned/VBN
about/IN
the/DT
toll/NN
mounting/VBG
legal/JJ
bills/NNS
will/MD
take/VB
on/IN
Mr./NNP
Hunt/NNP
's/POS
shrinking/VBG
estate/NN
and/CC
about/IN
the/DT
fact/NN
that/IN
,/,
following/VBG
voting/NN
by/IN
creditors/NNS
,/,
none/NN
of/IN
the/DT
reorganization/NN
plans/NNS
appeared/VBD
to/TO
be/VB
viable/JJ
in/IN
their/PRP$
present/JJ
form/NN
./.
``/``
It/PRP
would/MD
be/VB
a/DT
shame/NN
to/TO
have/VB
a/DT
Chapter/NN
7/CD
after/IN
all/PDT
the/DT
progress/NN
in/IN
this/DT
case/NN
,/,
''/''
said/VBD
Judge/NNP
Abramson/NNP
./.
Under/IN
Chapter/NN
11/CD
of/IN
the/DT
Federal/NNP
Bankruptcy/NNP
Code/NNP
,/,
a/DT
company/NN
continues/VBZ
to/TO
operate/VB
under/IN
protection/NN
from/IN
creditors/NNS
'/POS
lawsuits/NNS
while/IN
it/PRP
works/VBZ
out/IN
a/DT
plan/NN
to/TO
pay/VB
its/PRP$
debts/NNS
./.
Under/IN
Chapter/NN
7/CD
,/,
the/DT
assets/NNS
of/IN
a/DT
company/NN
are/VBP
sold/VBN
off/IN
to/TO
pay/VB
creditors/NNS
./.
Despite/IN
his/PRP$
reluctance/NN
to/TO
take/VB
the/DT
latter/JJ
step/NN
,/,
the/DT
judge/NN
indicated/VBD
he/PRP
would/MD
move/VB
quickly/RB
after/IN
hearing/VBG
testimony/NN
later/RB
this/DT
week/NN
in/IN
the/DT
bitter/JJ
dispute/NN
between/IN
Manufacturers/NNPS
Hanover/NNP
Trust/NNP
Co./NNP
and/CC
Minpeco/NNP
S.A./NNP
,/,
a/DT
minerals/NNS
concern/NN
owned/VBN
by/IN
the/DT
Peruvian/JJ
governmemt/NN
./.
The/DT
Manufacturers/NNPS
Hanover/NNP
Corp./NNP
unit/NN
,/,
which/WDT
is/VBZ
seeking/VBG
repayment/NN
of/IN
a/DT
$/$
36/CD
million/CD
loan/NN
,/,
has/VBZ
asked/VBN
the/DT
court/NN
to/TO
give/VB
its/PRP$
claim/NN
priority/NN
over/IN
that/DT
of/IN
Minpeco/NNP
,/,
which/WDT
won/VBD
a/DT
$/$
132/CD
million/CD
judgment/NN
against/IN
Mr./NNP
Hunt/NNP
,/,
his/PRP$
brother/NN
Nelson/NNP
Bunker/NNP
Hunt/NNP
and/CC
other/JJ
defendants/NNS
last/JJ
year/NN
in/IN
a/DT
case/NN
stemming/VBG
from/IN
their/PRP$
alleged/VBN
attempts/NNS
to/TO
corner/VB
the/DT
silver/JJ
market/NN
in/IN
While/IN
claiming/VBG
that/IN
penalties/NNS
,/,
legal/JJ
fees/NNS
and/CC
interest/NN
have/VBP
driven/VBN
the/DT
value/NN
of/IN
its/PRP$
claim/NN
to/TO
more/JJR
than/IN
$/$
250/CD
million/CD
,/,
Minpeco/NNP
has/VBZ
agreed/VBN
to/TO
settle/VB
for/IN
an/DT
allowed/JJ
claim/NN
of/IN
as/RB
much/JJ
as/IN
$/$
65.7/CD
million/CD
./.
But/CC
even/RB
that/DT
is/VBZ
disputed/VBN
by/IN
Manufacturers/NNPS
Hanover/NNP
which/WDT
,/,
in/IN
alliance/NN
with/IN
the/DT
IRS/NNP
,/,
contends/VBZ
that/IN
Minpeco/NNP
has/VBZ
already/RB
collected/VBN
more/JJR
than/IN
its/PRP$
actual/JJ
damages/NNS
from/IN
other/JJ
defendants/NNS
in/IN
the/DT
silver-conspiracy/NN
case/NN
./.
Under/IN
prodding/VBG
from/IN
Judge/NNP
Abramson/NNP
,/,
a/DT
Minpeco/NNP
executive/NN
flew/VBD
in/IN
from/IN
Peru/NNP
last/JJ
week/NN
to/TO
talk/VB
directly/RB
with/IN
executives/NNS
from/IN
Manufacturers/NNPS
Hanover/NNP
on/IN
a/DT
settlement/NN
./.
Despite/IN
long/JJ
private/JJ
sessions/NNS
in/IN
both/DT
New/NNP
York/NNP
and/CC
Dallas/NNP
,/,
the/DT
two/CD
sides/NNS
ended/VBD
the/DT
week/NN
``/``
6,000/CD
miles/NNS
and/CC
many/JJ
dollars/NNS
apart/RB
,/,
''/''
according/VBG
to/TO
attorney/NN
Hugh/NNP
Ray/NNP
,/,
who/WP
represents/VBZ
Manufacturers/NNPS
Hanover/NNP
./.
Meanwhile/RB
,/,
inside/IN
the/DT
courtroom/NN
,/,
the/DT
judge/NN
said/VBD
he/PRP
would/MD
fine/VB
attorneys/NNS
for/IN
the/DT
two/CD
creditors/NNS
$/$
50/CD
every/DT
time/NN
they/PRP
referred/VBD
to/TO
each/DT
other/JJ
with/IN
terms/NNS
such/JJ
as/IN
``/``
liar/NN
''/''
or/CC
``/``
slime/NN
./.
''/''
All/DT
three/CD
major/JJ
creditors/NNS
--/:
the/DT
IRS/NNP
,/,
Minpeco/NNP
and/CC
Manufacturers/NNPS
Hanover/NNP
--/:
voted/VBD
against/IN
and/CC
effectively/RB
doomed/VBD
a/DT
reorganization/NN
plan/NN
proposed/VBN
by/IN
Mr./NNP
Hunt/NNP
./.
A/DT
reorganization/NN
plan/NN
proposed/VBN
jointly/RB
by/IN
the/DT
IRS/NNP
and/CC
Manufacturers/NNPS
Hanover/NNP
was/VBD
stalled/VBN
by/IN
a/DT
negative/JJ
vote/NN
from/IN
Minpeco/NNP
./.
The/DT
mineral/NN
concern/NN
's/POS
own/JJ
reorganization/NN
plan/NN
met/VBD
a/DT
similar/JJ
fate/NN
after/IN
opposition/NN
from/IN
the/DT
IRS/NNP
and/CC
Manufacturers/NNPS
Hanover/NNP
./.
Neither/DT
plan/NN
is/VBZ
dead/JJ
,/,
however/RB
,/,
and/CC
the/DT
judge/NN
could/MD
force/VB
creditors/NNS
to/TO
accept/VB
some/DT
version/NN
of/IN
them/PRP
after/IN
ruling/VBG
on/IN
the/DT
Minpeco-Manufacturers/NNPS
Hanover/NNP
dispute/NN
./.
Meanwhile/RB
,/,
settlement/NN
negotiations/NNS
continue/VBP
between/IN
Mr./NNP
Hunt/NNP
and/CC
the/DT
IRS/NNP
,/,
which/WDT
has/VBZ
already/RB
reached/VBN
a/DT
tentative/JJ
agreement/NN
with/IN
Nelson/NNP
Bunker/NNP
Hunt/NNP
./.
The/DT
two/CD
sides/NNS
have/VBP
been/VBN
far/RB
apart/RB
on/IN
how/WRB
much/JJ
Herbert/NNP
Hunt/NNP
will/MD
continue/VB
to/TO
owe/VB
the/DT
government/NN
after/IN
his/PRP$
assets/NNS
are/VBP
sold/VBN
./.
Stuart/NNP
E./NNP
Eizenstat/NNP
,/,
a/DT
partner/NN
in/IN
the/DT
Washington/NNP
law/NN
firm/NN
of/IN
Powell/NNP
,/,
Goldstein/NNP
,/,
Frazer/NNP
&/CC
Murphy/NNP
,/,
was/VBD
named/VBN
a/DT
director/NN
of/IN
this/DT
utility/NN
holding/VBG
company/NN
,/,
increasing/VBG
board/NN
membership/NN
to/TO
14/CD
./.
Pacific/NNP
First/NNP
Financial/NNP
Corp./NNP
said/VBD
it/PRP
signed/VBD
a/DT
non-binding/JJ
letter/NN
of/IN
intent/NN
to/TO
acquire/VB
the/DT
construction/NN
lending/NN
unit/NN
of/IN
Old/NNP
Stone/NNP
Bank/NNP
of/IN
California/NNP
./.
Terms/NNS
have/VBP
n't/RB
been/VBN
finalized/VBN
,/,
but/CC
the/DT
transaction/NN
is/VBZ
expected/VBN
to/TO
close/VB
by/IN
year/NN
end/NN
,/,
Pacific/NNP
First/NNP
said/VBD
./.
Old/NNP
Stone/NNP
's/POS
construction/NN
lending/NN
portfolio/NN
includes/VBZ
about/IN
$/$
250/CD
million/CD
in/IN
real-estate/NN
loans/NNS
outstanding/JJ
./.
The/DT
unit/NN
has/VBZ
30/CD
employees/NNS
in/IN
four/CD
California/NNP
offices/NNS
,/,
the/DT
company/NN
said/VBD
./.
Pacific/NNP
First/NNP
owns/VBZ
Pacific/NNP
First/NNP
Federal/NNP
Savings/NNP
Banks/NNPS
and/CC
other/JJ
financial/JJ
services/NNS
firms/NNS
./.
General/NNP
Electric/NNP
Co./NNP
's/POS
rail-car/NN
leasing/NN
unit/NN
completed/VBD
the/DT
$/$
178.5/CD
million/CD
purchase/NN
of/IN
similar/JJ
businesses/NNS
from/IN
Leucadia/NNP
National/NNP
Corp./NNP
and/CC
Brae/NNP
Corp./NNP
,/,
74%-owned/JJ
by/IN
Leucadia/NNP
,/,
the/DT
sellers/NNS
said/VBD
./.
The/DT
buyer/NN
was/VBD
GE/NNP
Capital/NNP
Railcar/NNP
Services/NNPS
,/,
Chicago/NNP
,/,
a/DT
major/JJ
owner/NN
of/IN
railway/NN
equipment/NN
and/CC
part/NN
of/IN
the/DT
GE/NNP
Capital/NNP
operations/NNS
./.
Leucadia/NNP
,/,
New/NNP
York/NNP
,/,
estimated/VBD
it/PRP
had/VBD
a/DT
pre-tax/JJ
gain/NN
on/IN
the/DT
transaction/NN
of/IN
$/$
57/CD
million/CD
,/,
including/VBG
its/PRP$
part/NN
of/IN
Brae/NNP
's/POS
gain/NN
./.
Because/IN
of/IN
tax-loss/NN
carry-forward/NN
,/,
Leucadia/NNP
said/VBD
it/PRP
expects/VBZ
to/TO
escape/VB
taxes/NNS
on/IN
``/``
a/DT
substantial/JJ
portion/NN
of/IN
the/DT
gain/NN
./.
''/''
The/DT
estimated/VBN
gain/NN
for/IN
Brae/NNP
is/VBZ
$/$
15/CD
million/CD
,/,
including/VBG
a/DT
tax/NN
credit/NN
of/IN
$/$
7/CD
million/CD
,/,
the/DT
sellers/NNS
said/VBD
./.
``/``
The/DT
credit/NN
for/IN
income/NN
taxes/NNS
is/VBZ
a/DT
result/NN
of/IN
having/VBG
provided/VBN
deferred/JJ
income/NN
taxes/NNS
applicable/JJ
to/TO
the/DT
sold/VBN
assets/NNS
at/IN
the/DT
higher/JJR
income/NN
tax/NN
rates/NNS
in/IN
effect/NN
in/IN
prior/JJ
years/NNS
,/,
''/''
the/DT
sellers/NNS
said/VBD
./.
Automatic/NNP
Data/NNP
Processing/NNP
Inc./NNP
plans/VBZ
to/TO
redeem/VB
on/IN
Nov./NNP
16/CD
its/PRP$
$/$
150/CD
million/CD
of/IN
6.5/CD
%/NN
convertible/JJ
subordinated/VBN
debentures/NNS
due/JJ
March/NNP
1/CD
,/,
2011/CD
./.
The/DT
computing-services/JJ
concern/NN
will/MD
pay/VB
$/$
1,059.04/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
of/IN
debt/NN
./.
The/DT
conversion/NN
price/NN
for/IN
the/DT
debentures/NNS
is/VBZ
$/$
41.725/CD
a/DT
share/NN
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
Friday/NNP
,/,
Automatic/NNP
Data/NNP
closed/VBD
at/IN
$/$
46.50/CD
a/DT
share/NN
,/,
down/RB
$/$
2.25/CD
./.
If/IN
all/PDT
the/DT
debt/NN
is/VBZ
converted/VBN
to/TO
common/JJ
,/,
Automatic/NNP
Data/NNP
will/MD
issue/VB
about/IN
3.6/CD
million/CD
shares/NNS
;/:
last/JJ
Monday/NNP
,/,
the/DT
company/NN
had/VBD
nearly/RB
73/CD
million/CD
shares/NNS
outstanding/JJ
./.
Automatic/NNP
Data/NNP
is/VBZ
redeeming/JJ
the/DT
bonds/NNS
because/IN
the/DT
after-tax/JJ
cost/NN
of/IN
the/DT
interest/NN
on/IN
the/DT
bonds/NNS
is/VBZ
higher/JJR
than/IN
the/DT
dividend/NN
yield/NN
on/IN
the/DT
common/JJ
,/,
a/DT
spokesman/NN
said/VBD
./.
Dow/NNP
Jones/NNP
&/CC
Co./NNP
extended/VBD
its/PRP$
tender/NN
offer/NN
of/IN
$/$
18/CD
a/DT
share/NN
,/,
or/CC
about/IN
$/$
576/CD
million/CD
,/,
for/IN
the/DT
33/CD
%/NN
of/IN
Telerate/NNP
Inc./NNP
that/IN
it/PRP
does/VBZ
n't/RB
already/RB
own/JJ
until/IN
5/CD
p.m./RB
EST/NN
,/,
Nov./NNP
6/CD
./.
The/DT
offer/NN
,/,
which/WDT
Telerate/NNP
's/POS
two/CD
independent/JJ
directors/NNS
have/VBP
rejected/VBN
as/IN
inadequate/JJ
,/,
previously/RB
had/VBD
been/VBN
scheduled/VBN
to/TO
expire/VB
at/IN
midnight/NN
Friday/NNP
./.
Dow/NNP
Jones/NNP
said/VBD
it/PRP
extended/VBD
the/DT
offer/NN
to/TO
allow/VB
shareholders/NNS
time/NN
to/TO
review/VB
a/DT
supplement/NN
to/TO
the/DT
Dow/NNP
Jones/NNP
tender/NN
offer/NN
circular/JJ
that/IN
it/PRP
mailed/VBD
last/JJ
Friday/NNP
./.
The/DT
supplement/NN
contains/VBZ
various/JJ
information/NN
that/WDT
has/VBZ
been/VBN
filed/VBN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
since/IN
Dow/NNP
Jones/NNP
launched/VBD
the/DT
offer/NN
on/IN
Sept./NNP
26/CD
,/,
but/CC
it/PRP
does/VBZ
n't/RB
change/VB
the/DT
terms/NNS
and/CC
conditions/NNS
of/IN
the/DT
offer/NN
except/IN
to/TO
extend/VB
its/PRP$
expiration/NN
date/NN
./.
In/IN
Delaware/NNP
Chancery/NNP
Court/NNP
litigation/NN
,/,
Telerate/NNP
has/VBZ
criticized/VBN
Dow/NNP
Jones/NNP
for/IN
not/RB
disclosing/VBG
that/IN
Telerate/NNP
's/POS
management/NN
expects/VBZ
the/DT
company/NN
's/POS
revenue/NN
to/TO
increase/VB
by/IN
20/CD
%/NN
annually/RB
,/,
while/IN
Dow/NNP
Jones/NNP
based/VBD
its/PRP$
projections/NNS
of/IN
Telerate/NNP
's/POS
performance/NN
on/IN
a/DT
12/CD
%/NN
revenue/NN
growth/NN
forecast/NN
./.
In/IN
the/DT
tender/NN
offer/NN
supplement/NN
,/,
Dow/NNP
Jones/NNP
discloses/VBZ
the/DT
different/JJ
growth/NN
forecasts/NNS
but/CC
says/VBZ
it/PRP
views/VBZ
the/DT
20/CD
%/NN
growth/NN
rate/NN
``/``
as/IN
a/DT
hoped-for/JJ
goal/NN
''/''
of/IN
Telerate/NNP
's/POS
management/NN
``/``
and/CC
not/RB
as/IN
a/DT
realistic/JJ
basis/NN
on/IN
which/WDT
to/TO
project/VB
the/DT
company/NN
's/POS
likely/JJ
future/NN
performance/NN
./.
''/''
Telerate/NNP
shares/NNS
fell/VBD
50/CD
cents/NNS
on/IN
Friday/NNP
to/TO
close/VB
at/IN
$/$
20/CD
each/DT
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
Dow/NNP
Jones/NNP
shares/NNS
also/RB
fell/VBD
50/CD
cents/NNS
to/TO
close/VB
at/IN
$/$
36.125/CD
in/IN
Big/NNP
Board/NNP
composite/JJ
trading/NN
./.
Dow/NNP
Jones/NNP
has/VBZ
said/VBN
it/PRP
believes/VBZ
the/DT
$/$
18-a-share/JJ
price/NN
is/VBZ
fair/JJ
to/TO
Telerate/NNP
's/POS
minority/NN
shareholders/NNS
./.
Late/JJ
last/JJ
week/NN
,/,
representatives/NNS
of/IN
Dow/NNP
Jones/NNP
and/CC
Telerate/NNP
began/VBD
negotiations/NNS
about/IN
the/DT
terms/NNS
of/IN
the/DT
offer/NN
,/,
but/CC
those/DT
talks/NNS
did/VBD
n't/RB
result/VB
in/IN
any/DT
changes/NNS
in/IN
the/DT
offer/NN
./.
Telerate/NNP
provides/VBZ
information/NN
about/IN
financial/JJ
markets/NNS
through/IN
an/DT
electronic/JJ
network/NN
./.
Dow/NNP
Jones/NNP
,/,
which/WDT
owns/VBZ
67/CD
%/NN
of/IN
Telerate/NNP
,/,
publishes/VBZ
The/NNP
Wall/NNP
Street/NNP
Journal/NNP
,/,
Barron/NNP
's/POS
magazine/NN
,/,
community/NN
newspapers/NNS
and/CC
operates/VBZ
financial/JJ
news/NN
services/NNS
and/CC
computer/NN
data/NNS
bases/NNS
./.
Chamberlain/NNP
Manufacturing/NNP
Corp./NNP
won/VBD
a/DT
$/$
25.8/CD
million/CD
Army/NNP
contract/NN
for/IN
155mm/CD
artillery/NN
shell/NN
casings/NNS
./.
Avondale/NNP
Industries/NNPS
Inc./NNP
received/VBD
a/DT
$/$
13.5/CD
million/CD
Navy/NNP
contract/NN
for/IN
ship/NN
spare/JJ
parts/NNS
./.
Air/NNP
&/CC
Water/NNP
Technologies/NNPS
Corp./NNP
completed/VBD
the/DT
acquisition/NN
of/IN
Falcon/NNP
Associates/NNPS
Inc./NNP
,/,
a/DT
Bristol/NNP
,/,
Pa./NNP
,/,
asbestos-abatement/NN
concern/NN
,/,
for/IN
$/$
25/CD
million/CD
of/IN
stock/NN
./.
Air/NNP
&/CC
Water/NNP
,/,
which/WDT
provides/VBZ
environmental/JJ
services/NNS
and/CC
systems/NNS
,/,
paid/VBD
about/IN
1.4/CD
million/CD
of/IN
its/PRP$
shares/NNS
for/IN
Falcon/NNP
./.
In/IN
American/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
Friday/NNP
,/,
Air/NNP
&/CC
Water/NNP
closed/VBD
unchanged/JJ
at/IN
$/$
17.50/CD
./.
At/IN
July/NNP
31/CD
,/,
Air/NNP
&/CC
Water/NNP
had/VBD
nearly/RB
10/CD
million/CD
shares/NNS
outstanding/JJ
./.
The/DT
Canadian/JJ
pig/NN
herd/NN
totaled/VBD
10,674,500/CD
at/IN
Oct./NNP
1/CD
,/,
down/RB
3/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
,/,
said/VBD
Statistics/NNPS
Canada/NNP
,/,
a/DT
federal/JJ
agency/NN
./.
Sows/NNS
for/IN
breeding/VBG
and/CC
bred/VBN
gilts/NNS
totaled/VBD
1,070,000/CD
,/,
down/RB
2/CD
%/NN
from/IN
a/DT
year/NN
ago/IN
./.
Jacksonville/NNP
,/,
Fla./NNP
Charles/NNP
Bates/NNP
,/,
president/NN
,/,
chief/NN
executive/NN
and/CC
chief/NN
operating/VBG
officer/NN
will/MD
resign/VB
from/IN
these/DT
positions/NNS
and/CC
the/DT
board/NN
effective/JJ
Oct./NNP
31/CD
./.
Norman/NNP
J./NNP
Harrison/NNP
,/,
chairman/NN
,/,
will/MD
succeed/VB
him/PRP
as/RB
chief/NN
executive/NN
./.
Roger/NNP
L./NNP
Sutton/NNP
,/,
executive/JJ
vice/NN
president/NN
,/,
was/VBD
appointed/VBN
as/IN
the/DT
new/JJ
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
./.
Kerry/NNP
P./NNP
Charlet/NNP
will/MD
become/VB
executive/JJ
vice/NN
president/NN
,/,
and/CC
retain/VB
his/PRP$
positions/NNS
as/IN
chief/NN
financial/JJ
officer/NN
and/CC
treasurer/NN
./.
Upset/VBN
over/IN
the/DT
use/NN
of/IN
what/WP
it/PRP
says/VBZ
are/VBP
its/PRP$
exclusive/JJ
trademarks/NNS
,/,
Hells/NNP
Angels/NNP
Motorcycle/NNP
Corp./NNP
is/VBZ
fighting/VBG
back/RB
--/:
in/IN
court/NN
./.
Concord/NNP
New/NNP
Horizons/NNP
Corp./NNP
,/,
creators/NNS
of/IN
a/DT
1988/CD
movie/NN
called/VBN
Nam/NNP
Angels/NNPS
,/,
used/VBD
the/DT
gang/NN
's/POS
name/NN
and/CC
trademarks/NNS
without/IN
authorization/NN
,/,
the/DT
not-for-profit/JJ
corporation/NN
says/VBZ
in/IN
a/DT
complaint/NN
filed/VBN
in/IN
federal/JJ
court/NN
./.
Nam/NNP
Angels/NNPS
depicts/VBZ
a/DT
group/NN
of/IN
the/DT
cycle/NN
gang/NN
's/POS
members/NNS
on/IN
a/DT
mercenary/JJ
mission/NN
to/TO
Viet/NNP
Nam/NNP
during/IN
the/DT
war/NN
years/NNS
./.
In/IN
addition/NN
to/TO
being/VBG
broadcast/VBN
on/IN
cable/NN
television/NN
,/,
the/DT
movie/NN
also/RB
is/VBZ
being/VBG
distributed/VBN
on/IN
videocassettes/NNS
,/,
the/DT
suit/NN
alleges/VBZ
in/IN
seeking/VBG
unspecified/JJ
damages/NNS
./.
Also/RB
named/VBN
in/IN
the/DT
suit/NN
is/VBZ
Media/NNP
Home/NNP
Entertainment/NNP
Inc./NNP
of/IN
Culver/NNP
City/NNP
,/,
Calif./NNP
,/,
its/PRP$
parent/NN
,/,
Heron/NNP
Communications/NNPS
Inc./NNP
,/,
and/CC
Broadstar/NNP
Television/NNP
of/IN
Los/NNP
Angeles/NNP
,/,
holders/NNS
of/IN
the/DT
copyright/NN
on/IN
the/DT
movie/NN
./.
A/DT
Concord/NNP
spokeswoman/NN
called/VBD
the/DT
suit/NN
``/``
unfounded/JJ
''/''
but/CC
declined/VBD
to/TO
comment/VB
further/RB
./.
Besides/IN
being/VBG
upset/VBN
with/IN
the/DT
film/NN
's/POS
use/NN
of/IN
the/DT
Hells/NNP
Angels/NNPS
name/NN
and/CC
logos/NNS
,/,
the/DT
Angels/NNPS
are/VBP
angry/JJ
with/IN
their/PRP$
depiction/NN
in/IN
the/DT
movie/NN
./.
``/``
There/EX
is/VBZ
absolutely/RB
no/DT
way/NN
our/PRP$
board/NN
or/CC
membership/NN
would/MD
have/VB
approved/VBN
the/DT
portrayal/NN
of/IN
the/DT
Hells/NNP
Angels/NNPS
in/IN
this/DT
movie/NN
,/,
''/''
said/VBD
George/NNP
Christie/NNP
,/,
president/NN
of/IN
the/DT
club/NN
's/POS
Ventura/NNP
chapter/NN
./.
``/``
Portrayal/NN
of/IN
our/PRP$
members/NNS
as/IN
disloyal/JJ
to/TO
each/DT
other/JJ
is/VBZ
totally/RB
contrary/JJ
to/TO
the/DT
most/RBS
important/JJ
values/NNS
of/IN
our/PRP$
organization/NN
--/:
loyalty/NN
and/CC
trust/NN
./.
''/''
Nam/NNP
Angels/NNPS
shows/VBZ
Angels/NNPS
fighting/VBG
with/IN
each/DT
other/JJ
and/CC
also/RB
depicts/VBZ
them/PRP
as/IN
showing/VBG
no/DT
remorse/NN
when/WRB
a/DT
member/NN
is/VBZ
killed/VBN
./.
Both/DT
of/IN
these/DT
actions/NNS
are/VBP
n't/RB
characteristic/JJ
of/IN
real/JJ
Hells/NNP
Angels/NNPS
,/,
Mr./NNP
Christie/NNP
said/VBD
./.
Hells/NNP
Angels/NNPS
was/VBD
formed/VBN
in/IN
1948/CD
and/CC
incorporated/VBN
in/IN
1966/CD
./.
In/IN
addition/NN
to/TO
26/CD
chapters/NNS
in/IN
the/DT
U.S./NNP
,/,
there/EX
are/VBP
40/CD
chapters/NNS
in/IN
foreign/JJ
countries/NNS
./.
Douglas/NNP
H./NNP
Miller/NNP
,/,
self-employed/JJ
in/IN
the/DT
oil/NN
and/CC
gas/NN
securities/NNS
business/NN
,/,
was/VBD
named/VBN
chairman/NN
of/IN
this/DT
oil/NN
and/CC
gas/NN
exploration/NN
company/NN
,/,
filling/VBG
a/DT
vacancy/NN
./.
Mr./NNP
Miller/NNP
,/,
who/WP
has/VBZ
been/VBN
a/DT
Coda/NNP
director/NN
,/,
also/RB
was/VBD
named/VBN
chief/NN
executive/NN
officer/NN
,/,
succeeding/VBG
Ted/NNP
Eubank/NNP
,/,
who/WP
remains/VBZ
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
./.
Lawrence/NNP
M./NNP
Gressette/NNP
Jr./NNP
,/,
president/NN
,/,
was/VBD
elected/VBN
to/TO
the/DT
additional/JJ
posts/NNS
of/IN
chairman/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
this/DT
utility/NN
holding/NN
company/NN
,/,
effective/JJ
Feb./NNP
1/CD
,/,
1990/CD
./.
The/DT
57-year-old/JJ
Mr./NNP
Gressette/NNP
,/,
who/WP
was/VBD
also/RB
elected/VBN
chairman/NN
and/CC
chief/NN
executive/NN
of/IN
all/DT
Scana/NNP
subsidiaries/NNS
,/,
succeeds/VBZ
John/NNP
A./NNP
Warren/NNP
./.
Mr./NNP
Warren/NNP
will/MD
remain/VB
on/IN
the/DT
company/NN
's/POS
board/NN
./.
The/DT
American/NNP
Stock/NNP
Exchange/NNP
said/VBD
a/DT
seat/NN
was/VBD
sold/VBN
for/IN
$/$
165,000/CD
,/,
unchanged/JJ
from/IN
the/DT
previous/JJ
sale/NN
Oct./NNP
13/CD
./.
Seats/NNS
on/IN
the/DT
Amex/NNP
currently/RB
are/VBP
quoted/VBN
at/IN
$/$
151,000/CD
bid/NN
and/CC
$/$
200,000/CD
asked/VBN
./.
The/DT
world/NN
had/VBD
a/DT
big/JJ
yuk/NN
recently/RB
when/WRB
the/DT
Soviets/NNPS
reported/VBD
a/DT
rash/NN
of/IN
UFO/NNP
landings/NNS
,/,
one/CD
of/IN
them/PRP
bringing/VBG
tall/JJ
aliens/NNS
who/WP
glowed/VBD
in/IN
the/DT
dark/NN
to/TO
Voronezh/NNP
./.
It/PRP
is/VBZ
the/DT
opinion/NN
of/IN
Timothy/NNP
Good/NNP
,/,
author/NN
of/IN
``/``
Above/NNP
Top/NNP
Secret/NNP
:/:
The/NNP
World/NNP
UFO/NNP
Cover-Up/NNP
''/''
(/(
Quill\/William/NNP
Morrow/NNP
,/,
592/CD
pages/NNS
,/,
$/$
12.95/CD
the/DT
world/NN
laughs/VBZ
too/RB
fast/RB
./.
Here/RB
is/VBZ
a/DT
bible/JJ
for/IN
UFO/NNP
watchers/NNS
,/,
complete/JJ
with/IN
pictures/NNS
of/IN
people/NNS
who/WP
say/VBP
they/PRP
've/VBP
had/VBN
personal/JJ
relationships/NNS
with/IN
aliens/NNS
./.
One/CD
photo/NN
shows/VBZ
a/DT
woman/NN
sporting/VBG
a/DT
scar/NN
she/PRP
says/VBZ
was/VBD
made/VBN
by/IN
a/DT
laser/NN
beam/NN
a/DT
low-caliber/NN
weapon/NN
,/,
from/IN
the/DT
looks/NNS
of/IN
the/DT
wound/NN
So/RB
far/RB
anyway/RB
,/,
our/PRP$
alien/JJ
visitors/NNS
seem/VBP
more/JJR
intent/NN
on/IN
brightening/VBG
our/PRP$
skies/NNS
than/IN
pulverizing/VBG
us/PRP
./.
Mr./NNP
Good/NNP
devotes/VBZ
much/RB
serious/JJ
space/NN
to/TO
the/DT
events/NNS
of/IN
Feb./NNP
25/CD
,/,
1942/CD
,/,
when/WRB
American/JJ
gunners/NNS
spotted/VBD
strange/JJ
lights/NNS
in/IN
the/DT
sky/NN
above/IN
Los/NNP
Angeles/NNP
./.
Air-raid/JJ
sirens/NNS
sounded/VBD
the/DT
alarm/NN
at/IN
2:25/CD
a.m./RB
,/,
summoning/VBG
12,000/CD
air/NN
wardens/NNS
to/TO
duty/NN
./.
Soon/RB
all/DT
hell/NN
broke/VBD
loose/RB
./.
Ground/NN
batteries/NNS
,/,
targeting/VBG
an/DT
odd/JJ
assortment/NN
of/IN
aircraft/NN
traveling/VBG
at/IN
highly/RB
unusual/JJ
speeds/NNS
,/,
opened/VBD
up/IN
a/DT
furious/JJ
fusillade/NN
./.
The/DT
sky/NN
filled/VBD
with/IN
12.8-pound/JJ
shells/NNS
,/,
several/JJ
of/IN
which/WDT
fell/VBD
back/RB
to/TO
Earth/NN
,/,
destroying/VBG
homes/NNS
and/CC
buildings/NNS
./.
When/WRB
the/DT
smoke/NN
cleared/VBD
,/,
six/CD
people/NNS
were/VBD
dead/JJ
three/CD
from/IN
heart/NN
attacks/NNS
everyone/NN
wondered/VBD
what/WP
in/IN
the/DT
world/NN
they/PRP
were/VBD
shooting/VBG
at/IN
./.
Mr./NNP
Good/NNP
,/,
who/WP
documents/VBZ
these/DT
things/NNS
as/RB
best/RB
he/PRP
can/MD
,/,
provides/VBZ
an/DT
official/JJ
explanation/NN
in/IN
the/DT
form/NN
of/IN
a/DT
memorandum/NN
from/IN
Chief/NNP
of/IN
Staff/NNP
George/NNP
C./NNP
Marshall/NNP
to/TO
President/NNP
Roosevelt/NNP
:/:
``/``
1,430/CD
pounds/NNS
of/IN
ammunition/NN
,/,
''/''
he/PRP
wrote/VBD
his/PRP$
commander/NN
in/IN
chief/NN
,/,
were/VBD
expended/VBN
on/IN
``/``
unidentified/JJ
aircraft/NN
,/,
''/''
flying/VBG
at/IN
speeds/NNS
as/RB
slow/JJ
as/IN
200/CD
mph/NN
and/CC
elevations/NNS
between/IN
9,000/CD
and/CC
18,000/CD
feet/NNS
./.
Well/UH
,/,
thousands/NNS
of/IN
Californians/NNPS
on/IN
the/DT
scene/NN
insisted/VBD
the/DT
ammo/NN
had/VBD
been/VBN
uselessly/RB
aimed/VBN
at/IN
a/DT
large/JJ
,/,
hardy/JJ
UFO/NNP
,/,
but/CC
you/PRP
will/MD
just/RB
have/VB
to/TO
make/VB
your/PRP$
own/JJ
decision/NN
about/IN
such/JJ
sightings/NNS
./.
One/CD
thing/NN
's/VBZ
for/IN
sure/JJ
:/:
There/EX
have/VBP
been/VBN
a/DT
ton/NN
of/IN
them/PRP
,/,
and/CC
greater/JJR
beings/NNS
than/IN
the/DT
editors/NNS
of/IN
the/DT
National/NNP
Enquirer/NNP
have/VBP
shown/VBN
interest/NN
./.
Gerald/NNP
Ford/NNP
,/,
a/DT
fairly/RB
down-to-earth/JJ
fellow/NN
,/,
once/RB
sent/VBD
a/DT
letter/NN
to/TO
the/DT
chairman/NN
of/IN
the/DT
Armed/NNP
Services/NNPS
Committee/NNP
recommending/VBG
that/IN
``/``
there/EX
be/VB
a/DT
committee/NN
investigation/NN
of/IN
the/DT
UFO/NNP
phenomenon/NN
./.
I/PRP
think/VBP
we/PRP
owe/VBP
it/PRP
to/TO
the/DT
American/JJ
people/NNS
to/TO
establish/VB
credibility/NN
regarding/VBG
UFOs/NNS
and/CC
to/TO
produce/VB
the/DT
greatest/JJS
possible/JJ
enlightenment/NN
on/IN
the/DT
subject/NN
./.
''/''
Jimmy/NNP
Carter/NNP
went/VBD
further/RB
in/IN
a/DT
1976/CD
campaign/NN
promise/NN
:/:
``/``
If/IN
I/PRP
become/VBP
president/NN
,/,
I/PRP
'll/MD
make/VB
every/DT
piece/NN
of/IN
information/NN
this/DT
country/NN
has/VBZ
about/IN
UFO/NNP
sightings/NNS
available/JJ
to/TO
the/DT
public/NN
,/,
and/CC
the/DT
scientists/NNS
./.
I/PRP
am/VBP
convinced/VBN
that/IN
UFOs/NNS
exist/VBP
because/IN
I/PRP
have/VBP
seen/VBN
one/CD
.../:
./.
''/''
But/CC
you/PRP
know/VBP
about/IN
campaign/NN
promises/NNS
./.
It/PRP
still/RB
does/VBZ
n't/RB
look/VB
like/IN
governments/NNS
are/VBP
coughing/VBG
up/IN
everything/NN
they/PRP
know/VBP
./.
Still/RB
,/,
despite/IN
their/PRP$
efforts/NNS
to/TO
convince/VB
the/DT
world/NN
that/IN
we/PRP
are/VBP
indeed/RB
alone/RB
,/,
the/DT
visitors/NNS
do/VBP
seem/VB
to/TO
keep/VB
coming/VBG
and/CC
,/,
like/IN
the/DT
recent/JJ
sightings/NNS
,/,
there/EX
's/VBZ
often/RB
a/DT
detail/NN
or/CC
two/CD
that/WDT
suggests/VBZ
they/PRP
may/MD
actually/RB
be/VB
a/DT
little/JJ
on/IN
the/DT
dumb/JJ
side/NN
./.
For/IN
instance/NN
,/,
witnesses/NNS
in/IN
Voronezh/NNP
say/VBP
the/DT
pinheaded/JJ
behemoths/NNS
and/CC
their/PRP$
robot/NN
friend/NN
,/,
after/IN
strolling/VBG
around/IN
the/DT
city/NN
park/NN
,/,
left/VBD
behind/IN
some/DT
rocks/NNS
./.
Now/RB
why/WRB
,/,
you/PRP
have/VBP
to/TO
ask/VB
yourself/PRP
,/,
would/MD
intelligent/JJ
beings/NNS
haul/VB
a/DT
bunch/NN
of/IN
rocks/NNS
around/IN
the/DT
universe/NN
?/.
Or/CC
land/VB
in/IN
Russia/NNP
so/RB
often/RB
./.
In/IN
a/DT
1961/CD
incident/NN
,/,
a/DT
Soviet/JJ
mail/NN
plane/NN
disappeared/VBD
off/IN
the/DT
radar/NN
screen/NN
just/RB
after/IN
radioing/VBG
its/PRP$
position/NN
to/TO
ground/NN
control/NN
in/IN
Sverdlovsk/NNP
./.
A/DT
search/NN
party/NN
soon/RB
found/VBD
the/DT
unscathed/JJ
aircraft/NN
in/IN
a/DT
forest/NN
clearing/NN
much/RB
too/RB
small/JJ
to/TO
have/VB
allowed/VBN
a/DT
conventional/JJ
landing/NN
./.
What/WP
's/VBZ
more/JJR
,/,
the/DT
seven/CD
mail/NN
personnel/NNS
aboard/IN
were/VBD
missing/VBG
./.
Again/RB
,/,
you/PRP
have/VBP
to/TO
ask/VB
the/DT
obvious/JJ
question/NN
:/:
Why/WRB
would/MD
intelligent/JJ
beings/NNS
kidnap/VB
seven/CD
Soviet/JJ
mailmen/NNS
?/.
Speculation/NN
as/IN
to/TO
the/DT
nature/NN
of/IN
aliens/NNS
will/MD
no/DT
doubt/NN
continue/VB
until/IN
we/PRP
wake/VBP
up/IN
one/CD
morning/NN
to/TO
find/VB
they/PRP
've/VBP
taken/VBN
over/IN
``/``
The/NNP
Today/NNP
Show/NNP
,/,
''/''
the/DT
way/NN
they/PRP
overwhelm/VBP
an/DT
entire/JJ
town/NN
in/IN
Jack/NNP
Finney/NNP
's/POS
``/``
Invasion/NNP
of/IN
the/DT
Body/NNP
Snatchers/NNPS
''/''
(/(
Fireside\/Simon/NNP
&/CC
Schuster/NNP
,/,
216/CD
pages/NNS
,/,
$/$
8.95/CD
Maybe/RB
some/DT
of/IN
our/PRP$
talk-show/JJ
hosts/NNS
and/CC
anchors/NNS
have/VBP
already/RB
been/VBN
taken/VBN
over/IN
?/.
The/DT
point/NN
of/IN
this/DT
1955/CD
novel/NN
,/,
which/WDT
spawned/VBD
two/CD
movies/NNS
,/,
is/VBZ
that/IN
the/DT
soulless/JJ
pod/NN
people/NNS
replicated/VBN
by/IN
alien/JJ
plants/NNS
are/VBP
virtually/RB
indistinguishable/JJ
from/IN
human/JJ
folks/NNS
./.
Another/DT
guy/NN
who/WP
thinks/VBZ
they/PRP
're/VBP
out/IN
there/RB
and/CC
closing/VBG
fast/RB
is/VBZ
Whitley/NNP
Strieber/NNP
,/,
whose/WP$
new/JJ
novel/NN
,/,
``/``
Majestic/NNP
''/''
(/(
Putnam/NNP
,/,
317/CD
pages/NNS
,/,
$/$
18.95/CD
a/DT
look/NN
at/IN
a/DT
reported/VBN
1947/CD
UFO/NNP
crash/NN
near/IN
the/DT
Roswell/NNP
Army/NNP
Air/NNP
Field/NNP
in/IN
a/DT
New/NNP
Mexico/NNP
desert/NN
./.
Mr./NNP
Strieber/NNP
knows/VBZ
a/DT
lot/NN
about/IN
aliens/NNS
./.
He/PRP
even/RB
had/VBD
sex/NN
with/IN
one/CD
--/:
sort/NN
of/IN
,/,
and/CC
not/RB
intentionally/RB
--/:
as/IN
readers/NNS
learned/VBD
in/IN
his/PRP$
``/``
Communion/NNP
''/''
(/(
a/DT
book/NN
recently/RB
described/VBN
in/IN
the/DT
New/NNP
York/NNP
Times/NNP
as/IN
a/DT
``/``
nonfiction/NN
best/JJS
seller/NN
''/''
)/)
./.
The/DT
way/NN
Mr./NNP
Strieber/NNP
tells/VBZ
it/PRP
in/IN
his/PRP$
earnest/JJ
prose/NN
,/,
the/DT
intelligence/NN
officer/NN
who/WP
found/VBD
the/DT
craft/NN
's/POS
strange/JJ
debris/NN
was/VBD
forced/VBN
by/IN
the/DT
government/NN
to/TO
call/VB
the/DT
flower-inscribed/JJ
scraps/NNS
parts/NNS
of/IN
a/DT
weather/NN
balloon/NN
./.
The/DT
apparent/JJ
crash/NN
became/VBD
top/JJ
secret/NN
,/,
and/CC
the/DT
alien/NN
creatures/NNS
went/VBD
away/RB
upset/VBN
with/IN
the/DT
rude/JJ
ways/NNS
of/IN
human/JJ
beings/NNS
./.
We/PRP
lost/VBD
our/PRP$
chance/NN
to/TO
communicate/VB
with/IN
sweet-natured/JJ
visitors/NNS
``/``
about/IN
four/CD
feet/NNS
tall/JJ
{/(
who/WP
}/)
looked/VBD
as/IN
though/IN
they/PRP
were/VBD
made/VBN
of/IN
puffed-up/JJ
marshmallow/NN
./.
''/''
Mr./NNP
Shiflett/NNP
is/VBZ
an/DT
editorial/NN
writer/NN
for/IN
the/DT
Rocky/NNP
Mountain/NNP
News/NNP
./.
Trustcorp/NNP
Inc./NNP
will/MD
become/VB
Society/NNP
Bank/NNP
&/CC
Trust/NNP
when/WRB
its/PRP$
merger/NN
is/VBZ
completed/VBN
with/IN
Society/NNP
Corp./NNP
of/IN
Cleveland/NNP
,/,
the/DT
bank/NN
said/VBD
./.
Society/NNP
Corp./NNP
,/,
which/WDT
is/VBZ
also/RB
a/DT
bank/NN
,/,
agreed/VBN
in/IN
June/NNP
to/TO
buy/VB
Trustcorp/NNP
for/IN
12.4/CD
million/CD
shares/NNS
of/IN
stock/NN
with/IN
a/DT
market/NN
value/NN
of/IN
about/IN
$/$
450/CD
million/CD
./.
The/DT
transaction/NN
is/VBZ
expected/VBN
to/TO
close/VB
around/IN
year/NN
end/NN
./.
When/WRB
the/DT
economy/NN
stumbled/VBD
in/IN
the/DT
mid-1970s/CD
,/,
Akzo/NNP
NV/NNP
fell/VBD
out/IN
of/IN
bed/NN
./.
Towering/VBG
overcapacity/NN
in/IN
the/DT
synthetic/JJ
fiber/NN
business/NN
,/,
which/WDT
accounted/VBD
for/IN
half/NN
of/IN
the/DT
Dutch/JJ
chemical/NN
company/NN
's/POS
sales/NNS
,/,
led/VBD
to/TO
huge/JJ
losses/NNS
and/CC
left/VBD
Akzo/NNP
's/POS
survival/NN
in/IN
doubt/NN
./.
It/PRP
was/VBD
n't/RB
until/IN
the/DT
early/JJ
1980s/CD
that/IN
Akzo/NNP
nursed/VBD
itself/PRP
back/RB
to/TO
health/NN
./.
Now/RB
,/,
as/IN
a/DT
new/JJ
downturn/NN
in/IN
the/DT
chemical/NN
industry/NN
looms/VBZ
,/,
Akzo/NNP
says/VBZ
it/PRP
is/VBZ
in/IN
far/RB
better/JJR
shape/NN
to/TO
cope/VB
./.
Investment/NN
analysts/NNS
generally/RB
agree/VBP
./.
Aside/RB
from/IN
slashing/VBG
costs/NNS
and/CC
investing/VBG
heavily/RB
in/IN
its/PRP$
plants/NNS
,/,
Akzo/NNP
has/VBZ
spent/VBN
3.9/CD
billion/CD
guilders/NNS
$/$
1.88/CD
billion/CD
acquisitions/NNS
since/IN
1983/CD
to/TO
give/VB
it/PRP
better/JJR
balance/NN
./.
During/IN
the/DT
same/JJ
period/NN
,/,
the/DT
company/NN
has/VBZ
sold/VBN
about/IN
1.6/CD
billion/CD
guilders/NNS
of/IN
assets/NNS
./.
The/DT
fibers/NNS
business/NN
,/,
whose/WP$
products/NNS
go/VBP
into/IN
textiles/NNS
,/,
carpeting/NN
and/CC
myriad/JJ
industrial/JJ
uses/NNS
,/,
now/RB
accounts/VBZ
for/IN
only/RB
20/CD
%/NN
of/IN
Akzo/NNP
's/POS
sales/NNS
./.
``/``
We/PRP
have/VBP
definitely/RB
become/VBN
less/RBR
cyclical/JJ
,/,
''/''
Syb/NNP
Bergsma/NNP
,/,
executive/JJ
vice/NN
president-finance/NN
,/,
said/VBD
in/IN
an/DT
interview/NN
./.
Still/RB
,/,
Akzo/NNP
has/VBZ
n't/RB
yet/RB
found/VBN
a/DT
way/NN
to/TO
achieve/VB
another/DT
goal/NN
:/:
a/DT
large/JJ
presence/NN
in/IN
the/DT
U.S./NNP
market/NN
for/IN
prescription/NN
drugs/NNS
./.
Mr./NNP
Bergsma/NNP
said/VBD
prices/NNS
for/IN
U.S./NNP
pharmaceutical/JJ
companies/NNS
remain/VBP
too/RB
high/JJ
,/,
making/VBG
it/PRP
unlikely/JJ
that/IN
Akzo/NNP
will/MD
pursue/VB
any/DT
major/JJ
acquisitions/NNS
in/IN
that/DT
area/NN
./.
But/CC
he/PRP
said/VBD
Akzo/NNP
is/VBZ
considering/VBG
``/``
alliances/NNS
''/''
with/IN
American/JJ
drug/NN
companies/NNS
,/,
although/IN
he/PRP
would/MD
n't/RB
elaborate/VB
./.
An/DT
indication/NN
of/IN
Akzo/NNP
's/POS
success/NN
in/IN
reshaping/VBG
itself/PRP
will/MD
come/VB
Thursday/NNP
when/WRB
it/PRP
reports/VBZ
third-quarter/NN
results/NNS
./.
Analysts/NNS
expect/VBP
the/DT
company/NN
to/TO
show/VB
profit/NN
of/IN
about/IN
225/CD
million/CD
guilders/NNS
,/,
up/RB
9/CD
%/NN
from/IN
206.3/CD
million/CD
guilders/NNS
a/DT
year/NN
earlier/RBR
./.
A/DT
bigger/JJR
test/NN
will/MD
come/VB
next/JJ
year/NN
if/IN
,/,
as/IN
many/JJ
analysts/NNS
expect/VBP
,/,
bulk/JJ
chemical/NN
prices/NNS
slump/VBP
in/IN
Europe/NNP
./.
``/``
Maybe/RB
Akzo/NNP
can/MD
surprise/VB
the/DT
investment/NN
world/NN
a/DT
bit/NN
,/,
''/''
said/VBD
Jaap/NNP
Visker/NNP
,/,
an/DT
analyst/NN
at/IN
Amsterdam-Rotterdam/NNP
Bank/NNP
NV/NNP
./.
He/PRP
figures/VBZ
Akzo/NNP
is/VBZ
likely/JJ
to/TO
be/VB
one/CD
of/IN
the/DT
few/JJ
major/JJ
chemical/NN
companies/NNS
to/TO
show/VB
profit/NN
growth/NN
next/IN
year/NN
./.
The/DT
bank/NN
projects/VBZ
Akzo/NNP
will/MD
show/VB
per-share/JJ
earnings/NNS
of/IN
24/CD
guilders/NNS
in/IN
1990/CD
,/,
up/RB
from/IN
an/DT
estimated/VBN
22.5/CD
guilders/NNS
for/IN
this/DT
year/NN
and/CC
the/DT
20.9/CD
guilders/NNS
reported/VBN
for/IN
1988/CD
./.
At/IN
James/NNP
Capel/NNP
&/CC
Co./NNP
in/IN
London/NNP
,/,
analyst/NN
Jackie/NNP
Ashurst/NNP
notes/VBZ
that/IN
Akzo/NNP
is/VBZ
less/RBR
exposed/VBN
than/IN
many/JJ
of/IN
its/PRP$
rivals/NNS
to/TO
the/DT
most/RBS
volatile/JJ
chemical/NN
products/NNS
./.
For/IN
example/NN
,/,
Akzo/NNP
has/VBZ
only/RB
minor/JJ
petrochemical/NN
operations/NNS
,/,
is/VBZ
small/JJ
in/IN
plastics/NNS
and/CC
does/VBZ
n't/RB
make/VB
fertilizers/NNS
./.
Thus/RB
,/,
while/IN
Akzo/NNP
profited/VBD
less/JJR
than/IN
many/JJ
rivals/NNS
from/IN
the/DT
boom/NN
of/IN
recent/JJ
years/NNS
in/IN
petrochemicals/NNS
and/CC
plastics/NNS
,/,
it/PRP
has/VBZ
less/JJR
to/TO
fear/VB
from/IN
the/DT
current/JJ
slump/NN
./.
The/DT
company/NN
is/VBZ
exposed/VBN
to/TO
bulk/NN
chemicals/NNS
,/,
however/RB
./.
Although/IN
bulk-chemical/JJ
prices/NNS
have/VBP
begun/VBN
falling/VBG
in/IN
the/DT
U.S./NNP
,/,
they/PRP
are/VBP
generally/RB
stable/JJ
in/IN
Europe/NNP
,/,
Mr./NNP
Bergsma/NNP
said/VBD
./.
A/DT
decline/NN
may/MD
come/VB
in/IN
the/DT
first/JJ
half/NN
of/IN
1990/CD
,/,
he/PRP
said/VBD
,/,
but/CC
the/DT
market/NN
does/VBZ
n't/RB
appear/VB
on/IN
the/DT
verge/NN
of/IN
a/DT
severe/JJ
downturn/NN
./.
To/TO
reduce/VB
the/DT
danger/NN
of/IN
such/JJ
pricing/NN
cycles/NNS
,/,
Akzo/NNP
has/VBZ
invested/VBN
heavily/RB
in/IN
specialty/NN
chemicals/NNS
,/,
which/WDT
have/VBP
highly/RB
specific/JJ
industrial/JJ
uses/NNS
and/CC
tend/VBP
to/TO
produce/VB
much/JJ
higher/JJR
profit/NN
margins/NNS
than/IN
do/VBP
bulk/JJ
chemicals/NNS
./.
Akzo/NNP
's/POS
biggest/JJS
move/NN
in/IN
this/DT
area/NN
was/VBD
the/DT
1987/CD
acquisition/NN
of/IN
Stauffer/NNP
Chemical/NNP
Co./NNP
's/POS
specialty/NN
chemical/NN
business/NN
for/IN
$/$
625/CD
million/CD
./.
In/IN
a/DT
less/RBR
glamorous/JJ
field/NN
,/,
Akzo/NNP
is/VBZ
the/DT
world/NN
's/POS
biggest/JJS
producer/NN
of/IN
industrial/JJ
salt/NN
,/,
used/VBD
as/IN
a/DT
raw/JJ
material/NN
for/IN
the/DT
chemical/JJ
industry/NN
as/RB
well/RB
as/IN
for/IN
such/JJ
tasks/NNS
as/IN
melting/VBG
ice/NN
./.
Akzo/NNP
also/RB
makes/VBZ
products/NNS
derived/VBN
from/IN
salt/NN
,/,
such/JJ
as/IN
chlorine/NN
and/CC
caustic/JJ
soda/NN
./.
In/IN
the/DT
fibers/NNS
division/NN
,/,
profit/NN
remains/VBZ
weak/JJ
,/,
largely/RB
because/IN
of/IN
persistent/JJ
overcapacity/NN
./.
But/CC
Akzo/NNP
is/VBZ
still/RB
slimming/VBG
down/IN
:/:
It/PRP
recently/RB
announced/VBD
plans/NNS
to/TO
eliminate/VB
about/IN
1,700/CD
fiber-related/JJ
jobs/NNS
in/IN
the/DT
Netherlands/NNP
and/CC
West/NNP
Germany/NNP
./.
Although/IN
the/DT
polyester/NN
and/CC
rayon/NN
markets/NNS
remain/VBP
mostly/RB
bleak/JJ
,/,
Akzo/NNP
has/VBZ
high/JJ
hopes/NNS
for/IN
some/DT
emerging/VBG
fiber/NN
businesses/NNS
,/,
such/JJ
carbon/NN
fibers/NNS
and/CC
aramid/NN
,/,
extremely/RB
strong/JJ
fibers/NNS
used/VBN
to/TO
reinforce/VB
tires/NNS
and/CC
metals/NNS
and/CC
to/TO
make/VB
such/JJ
products/NNS
as/IN
bullet-proof/JJ
vests/NNS
./.
Akzo/NNP
's/POS
Twaron/NNP
aramid/NN
fiber/NN
is/VBZ
a/DT
distant/JJ
second/NN
to/TO
Du/NNP
Pont/NNP
Co./NNP
's/POS
Kevlar/NNP
,/,
which/WDT
dominates/VBZ
the/DT
market/NN
./.
Mr./NNP
Bergsma/NNP
said/VBD
world-wide/JJ
industry/NN
sales/NNS
of/IN
aramid/NN
fibers/NNS
are/VBP
expected/VBN
to/TO
total/VB
about/IN
$/$
500/CD
million/CD
this/DT
year/NN
./.
Sales/NNS
growth/NN
of/IN
10/CD
%/NN
a/DT
year/NN
seems/VBZ
possible/JJ
,/,
he/PRP
said/VBD
,/,
and/CC
Akzo/NNP
expects/VBZ
its/PRP$
Twaron/NNP
business/NN
to/TO
become/VB
profitable/JJ
in/IN
1990/CD
./.
Akzo/NNP
also/RB
has/VBZ
spent/VBN
heavily/RB
on/IN
acquisitions/NNS
in/IN
paints/NNS
,/,
auto/NN
finishes/NNS
and/CC
industrial/JJ
coatings/NNS
./.
In/IN
August/NNP
,/,
for/IN
example/NN
,/,
it/PRP
completed/VBD
the/DT
$/$
110/CD
million/CD
acquisition/NN
of/IN
Reliance/NNP
Universal/NNP
Inc./NNP
,/,
a/DT
U.S./NNP
maker/NN
of/IN
industrial/JJ
coatings/NNS
for/IN
wood/NN
,/,
metals/NNS
and/CC
plastics/NNS
,/,
from/IN
Tyler/NNP
Corp/NNP
./.
Mr./NNP
Bergsma/NNP
said/VBD
Akzo/NNP
is/VBZ
likely/JJ
to/TO
see/VB
strong/JJ
profit/NN
growth/NN
from/IN
coatings/NNS
as/IN
it/PRP
realizes/VBZ
cost/NN
savings/NNS
and/CC
other/JJ
benefits/NNS
from/IN
its/PRP$
greater/JJR
scale/NN
./.
For/IN
Akzo/NNP
's/POS
drug/NN
business/NN
,/,
where/WRB
profits/NNS
have/VBP
shown/VBN
litle/JJ
change/NN
for/IN
the/DT
past/JJ
five/CD
years/NNS
,/,
Mr./NNP
Bergsma/NNP
predicted/VBD
moderate/JJ
profit/NN
growth/NN
./.
Akzo/NNP
is/VBZ
the/DT
leading/VBG
seller/NN
of/IN
birth-control/JJ
pills/NNS
in/IN
Europe/NNP
but/CC
is/VBZ
still/RB
seeking/VBG
regulatory/JJ
approvals/NNS
to/TO
enter/VB
that/DT
market/NN
in/IN
the/DT
U.S./NNP
and/CC
Japan/NNP
./.
Mr./NNP
Bergsma/NNP
said/VBD
Akzo/NNP
hopes/VBZ
to/TO
have/VB
approval/NN
to/TO
sell/VB
its/PRP$
Marvelon/NNP
pill/NN
in/IN
the/DT
U.S./NNP
in/IN
1992/CD
./.
Akzo/NNP
also/RB
has/VBZ
small/JJ
operations/NNS
in/IN
diagnostic/JJ
tests/NNS
,/,
generic/JJ
drugs/NNS
and/CC
veterinary/JJ
products/NNS
./.
Veterinary/JJ
products/NNS
are/VBP
showing/VBG
especially/RB
strong/JJ
growth/NN
,/,
Mr./NNP
Bergsma/NNP
said/VBD
./.
Among/IN
the/DT
leading/VBG
products/NNS
is/VBZ
a/DT
flu/NN
shot/NN
for/IN
horses/NNS
./.
We/PRP
're/VBP
sorry/JJ
to/TO
see/VB
Nigel/NNP
Lawson/NNP
's/POS
departure/NN
from/IN
the/DT
British/JJ
government/NN
./.
He/PRP
is/VBZ
a/DT
politician/NN
with/IN
the/DT
courage/NN
of/IN
true/JJ
conviction/NN
,/,
as/IN
in/IN
summarily/RB
sacking/VBG
exchange/NN
controls/NNS
and/CC
in/IN
particular/JJ
slashing/VBG
the/DT
top/JJ
rate/NN
of/IN
income/NN
taxation/NN
to/TO
40/CD
%/NN
./.
But/CC
in/IN
the/DT
end/NN
his/PRP$
resignation/NN
as/IN
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
may/MD
be/VB
a/DT
good/JJ
thing/NN
,/,
especially/RB
if/IN
it/PRP
works/VBZ
as/IN
he/PRP
no/DT
doubt/NN
intends/VBZ
--/:
by/IN
forcing/VBG
Prime/NNP
Minister/NNP
Thatcher/NNP
and/CC
her/PRP$
counterparts/NNS
elsewhere/RB
to/TO
confront/VB
the/DT
genuine/JJ
intellectual/JJ
issues/NNS
involved/VBN
./.
The/DT
early/JJ
omens/NNS
,/,
we/PRP
admit/VBP
,/,
scarcely/RB
suggest/VBP
so/RB
wholesome/JJ
an/DT
outcome/NN
./.
The/DT
Fleet/NNP
Street/NNP
reaction/NN
was/VBD
captured/VBN
in/IN
the/DT
Guardian/NNP
headline/NN
,/,
``/``
Departure/NN
Reveals/VBZ
Thatcher/NNP
Poison/NN
./.
''/''
British/JJ
politicians/NNS
divide/VBP
into/IN
two/CD
groups/NNS
of/IN
chickens/NNS
,/,
those/DT
with/IN
their/PRP$
necks/NNS
cut/VBN
and/CC
those/DT
screaming/VBG
the/DT
sky/NN
is/VBZ
falling/VBG
./.
So/RB
far/RB
as/IN
we/PRP
can/MD
see/VB
only/RB
two/CD
persons/NNS
are/VBP
behaving/VBG
with/IN
a/DT
dignity/NN
recognizing/VBG
the/DT
seriousness/NN
of/IN
the/DT
issues/NNS
:/:
Mr./NNP
Lawson/NNP
and/CC
Sir/NNP
Alan/NNP
Walters/NNP
,/,
the/DT
counterpoint/NN
of/IN
the/DT
Chancellor/NNP
's/POS
difficulties/NNS
,/,
who/WP
also/RB
resigned/VBD
as/IN
personal/JJ
adviser/NN
to/TO
Mrs./NNP
Thatcher/NNP
./.
The/DT
problem/NN
is/VBZ
that/IN
on/IN
the/DT
vital/JJ
issue/NN
of/IN
monetary/JJ
policy/NN
and/CC
exchange/NN
rates/NNS
,/,
conservative/JJ
,/,
free-market/JJ
economists/NNS
divide/VBP
into/IN
at/IN
least/JJS
three/CD
incompatible/JJ
camps/NNS
./.
There/EX
are/VBP
the/DT
strict/JJ
monetarists/NNS
,/,
who/WP
believe/VBP
that/IN
floating/VBG
exchange/NN
rates/NNS
free/VBP
an/DT
economy/NN
to/TO
stabilize/VB
its/PRP$
price/NN
level/NN
by/IN
stabilizing/VBG
the/DT
monetary/JJ
aggregates/NNS
./.
There/EX
are/VBP
the/DT
supply-side/JJ
globalists/NNS
,/,
who/WP
seek/VBP
to/TO
spread/VB
the/DT
advantages/NNS
of/IN
a/DT
common/JJ
currency/NN
through/IN
fixed/VBN
exchange/NN
rates/NNS
./.
And/CC
there/EX
are/VBP
the/DT
twin-deficit/NN
Keynesians/NNPS
,/,
who/WP
predict\/advocate/VBP
devaluations/NNS
to/TO
balance/VB
trade/NN
flows/NNS
./.
This/DT
is/VBZ
a/DT
problem/NN
not/RB
only/RB
for/IN
Prime/NNP
Minister/NNP
Thatcher/NNP
but/CC
for/IN
President/NNP
Bush/NNP
,/,
as/IN
shown/VBN
in/IN
the/DT
ongoing/JJ
bickering/NN
over/IN
the/DT
dollar/NN
between/IN
the/DT
Federal/NNP
Reserve/NNP
and/CC
the/DT
Mulford/NNP
Treasury/NNP
./.
In/IN
the/DT
British/JJ
case/NN
,/,
Mr./NNP
Lawson/NNP
is/VBZ
the/DT
closest/JJS
thing/NN
in/IN
London/NNP
to/TO
a/DT
supply-side/JJ
globalist/NN
./.
He/PRP
not/RB
only/RB
slashed/VBD
marginal/JJ
tax/NN
rates/NNS
,/,
initially/RB
sparking/VBG
fresh/JJ
growth/NN
in/IN
Britain/NNP
,/,
but/CC
he/PRP
wanted/VBD
to/TO
regulate/VB
monetary/JJ
policy/NN
by/IN
targeting/VBG
exchange/NN
rates/NNS
,/,
indeed/RB
joining/VBG
the/DT
European/NNP
Monetary/NNP
System/NNP
./.
While/IN
no/DT
doubt/NN
agreeing/VBG
with/IN
Mr./NNP
Lawson/NNP
on/IN
everything/NN
else/RB
,/,
Sir/NNP
Alan/NNP
is/VBZ
a/DT
dyed-in-the-wool/JJ
monetarist/NN
,/,
inclined/VBN
to/TO
defend/VB
floating/VBG
rates/NNS
to/TO
the/DT
death/NN
./.
To/TO
make/VB
matters/NNS
even/RB
more/RBR
confusing/JJ
,/,
the/DT
earlier/JJR
U.S./NNP
experience/NN
made/VBD
clear/JJ
that/IN
Mr./NNP
Lawson/NNP
's/POS
tax/NN
cuts/NNS
would/MD
have/VB
profound/JJ
effects/NNS
on/IN
Britain/NNP
's/POS
international/JJ
accounts/NNS
and/CC
the/DT
value/NN
of/IN
sterling/NN
./.
They/PRP
increased/VBD
the/DT
after-tax/JJ
rate/NN
of/IN
return/NN
and/CC
made/VBD
Britain/NNP
a/DT
far/RB
more/RBR
attractive/JJ
place/NN
to/TO
invest/VB
,/,
producing/VBG
sudden/JJ
capital/NN
inflows/NNS
./.
By/IN
accounting/VBG
definitions/NNS
,/,
this/DT
had/VBD
to/TO
produce/VB
a/DT
sudden/JJ
trade/NN
deficit/NN
./.
As/IN
in/IN
the/DT
U.S./NNP
,/,
it/PRP
also/RB
produced/VBD
a/DT
sudden/JJ
burst/NN
in/IN
the/DT
demand/NN
for/IN
sterling/NN
,/,
that/DT
is/VBZ
a/DT
surge/NN
in/IN
the/DT
sterling/NN
monetary/JJ
aggregates/NNS
,/,
M-Whatever/NN
./.
At/IN
this/DT
point/NN
,/,
the/DT
options/NNS
were/VBD
:/:
Crunch/VB
money/NN
to/TO
stop/VB
the/DT
boost/NN
in/IN
the/DT
aggregates/NNS
,/,
as/IN
Sir/NNP
Alan/NNP
surely/RB
advised/VBD
,/,
and/CC
forget/VB
the/DT
soaring/VBG
pound/NN
./.
To/TO
push/VB
the/DT
pound/NN
even/RB
lower/RBR
trying/VBG
to/TO
cure/VB
the/DT
trade/NN
deficit/NN
,/,
a/DT
policy/NN
Britain/NNP
has/VBZ
repeatedly/RB
proved/VBN
disastrous/JJ
./.
Or/CC
to/TO
supply/VB
enough/JJ
money/NN
to/TO
meet/VB
the/DT
increased/VBN
demand/NN
and/CC
stabilize/VB
the/DT
exchange/NN
rate/NN
,/,
as/IN
the/DT
Chancellor/NNP
argued/VBD
,/,
and/CC
ensure/VB
the/DT
permanence/NN
of/IN
this/DT
policy/NN
by/IN
joining/VBG
the/DT
EMS/NNP
./.
Faced/VBN
with/IN
a/DT
similar/JJ
situation/NN
,/,
Paul/NNP
Volcker/NNP
let/VBD
the/DT
dollar/NN
soar/VB
,/,
(/(
though/IN
monetary/JJ
aggregates/NNS
also/RB
grew/VBD
so/RB
rapidly/RB
monetarists/NNS
issued/VBD
egg-on-the-face/JJ
warnings/NNS
of/IN
inflation/NN
But/CC
this/DT
devastated/VBD
the/DT
U.S./NNP
manufacturing/NN
sector/NN
,/,
laying/VBG
the/DT
seeds/NNS
of/IN
protectionism/NN
./.
Mr./NNP
Lawson/NNP
,/,
though/IN
not/RB
allowed/VBN
to/TO
join/VB
the/DT
EMS/NNP
,/,
chose/VBD
to/TO
``/``
shadow/VB
''/''
the/DT
deutsche/NN
mark/NN
./.
He/PRP
reaped/VBD
inflation/NN
along/IN
with/IN
rapid/JJ
growth/NN
,/,
no/DT
doubt/NN
validating/VBG
Sir/NNP
Alan/NNP
's/POS
predictions/NNS
in/IN
the/DT
Prime/NNP
Minister/NNP
's/POS
mind/NN
./.
But/CC
more/RBR
recently/RB
,/,
the/DT
pound/NN
has/VBZ
been/VBN
falling/VBG
with/IN
high/JJ
inflation/NN
,/,
which/WDT
has/VBZ
also/RB
seemed/VBN
almost/RB
impervious/JJ
to/TO
the/DT
high/JJ
interest/NN
rates/NNS
Mr./NNP
Lawson/NNP
deployed/VBD
to/TO
stop/VB
it/PRP
./.
So/IN
the/DT
British/JJ
experience/NN
presents/VBZ
a/DT
genuine/JJ
puzzle/NN
that/WDT
reaches/VBZ
far/RB
beyond/IN
the/DT
shores/NNS
of/IN
Albion/NNP
./.
We/PRP
had/VBD
been/VBN
soliciting/VBG
opinions/NNS
on/IN
it/PRP
long/JJ
before/IN
Mr./NNP
Lawson/NNP
's/POS
resignation/NN
,/,
and/CC
offer/VBP
some/DT
of/IN
the/DT
collection/NN
for/IN
the/DT
benefit/NN
of/IN
his/PRP$
successor/NN
and/CC
one-time/JJ
deputy/NN
,/,
John/NNP
Major/NNP
./.
To/TO
begin/VB
with/IN
,/,
we/PRP
should/MD
note/VB
that/IN
in/IN
contrast/NN
to/TO
the/DT
U.S./NNP
deficit/NN
,/,
Britain/NNP
has/VBZ
been/VBN
running/VBG
largish/JJ
budget/NN
surpluses/NNS
./.
In/IN
pursuit/NN
of/IN
this/DT
mystery/NN
,/,
Keynesian/JJ
adepts/NNS
and/CC
twin-deficit/NN
mavens/NNS
need/MD
not/RB
apply/VB
./.
We/PRP
should/MD
also/RB
add/VB
Mr./NNP
Lawson/NNP
's/POS
own/JJ
explanation/NN
,/,
as/IN
we/PRP
understand/VBP
it/PRP
./.
Unlike/IN
the/DT
U.S./NNP
,/,
Britain/NNP
never/RB
achieved/VBD
even/RB
a/DT
momentary/JJ
reduction/NN
in/IN
real/JJ
wages/NNS
./.
The/DT
wage/NN
stickiness/NN
,/,
which/WDT
OECD/NNP
studies/NNS
confirm/VBP
is/VBZ
particularly/RB
high/JJ
in/IN
Britain/NNP
,/,
gives/VBZ
its/PRP$
economy/NN
a/DT
structural/JJ
bias/NN
toward/IN
inflation/NN
./.
Inflation/NN
is/VBZ
easier/JJR
to/TO
spark/VB
and/CC
harder/JJR
to/TO
control/VB
./.
We/PRP
should/MD
also/RB
concede/VB
that/IN
in/IN
the/DT
British/JJ
experience/NN
the/DT
monetarist/NN
cause/NN
regains/VBZ
some/DT
of/IN
the/DT
credibility/NN
it/PRP
lost/VBD
in/IN
the/DT
U.S./NNP
experience/NN
./.
Nearby/JJ
Paul/NNP
Craig/NNP
Roberts/NNP
,/,
a/DT
distinguished/VBN
supply-sider/NN
with/IN
monetarist/NN
sympathies/NNS
,/,
argues/VBZ
the/DT
case/NN
for/IN
Sir/NNP
Alan/NNP
./.
Perhaps/RB
the/DT
fiscal/JJ
shock/NN
of/IN
tax/NN
cuts/NNS
is/VBZ
after/IN
all/DT
best/JJS
absorbed/VBN
by/IN
floating/VBG
rates/NNS
,/,
though/IN
of/IN
course/NN
in/IN
the/DT
event/NN
Mr./NNP
Lawson/NNP
resigned/VBD
over/IN
whether/IN
to/TO
support/VB
a/DT
weak/JJ
pound/NN
,/,
not/RB
restrain/VB
a/DT
strong/JJ
one/CD
./.
We/PRP
recall/VBP
that/IN
Mr./NNP
Roberts/NNP
not/RB
only/RB
chides/VBZ
the/DT
Chancellor/NNP
for/IN
being/VBG
too/RB
easy/RB
because/IN
of/IN
a/DT
desire/NN
to/TO
constrain/VB
sterling/JJ
,/,
but/CC
also/RB
led/VBD
the/DT
chorus/NN
saying/VBG
that/IN
Mr./NNP
Volcker/NNP
was/VBD
too/RB
tight/JJ
when/WRB
he/PRP
let/VBD
the/DT
dollar/NN
rise/NN
./.
Somewhere/RB
in/IN
between/IN
there/EX
must/MD
be/VB
a/DT
golden/JJ
mean/NN
,/,
perhaps/RB
measured/VBN
by/IN
M-Whatever/NNP
,/,
but/CC
perhaps/RB
measured/VBN
by/IN
purchasing/VBG
power/NN
parity/NN
./.
The/DT
globalists/NNS
tend/VBP
to/TO
think/VB
Mr./NNP
Lawson/NNP
ran/VBD
onto/IN
technical/JJ
reefs/NNS
./.
In/IN
fixing/VBG
rates/NNS
the/DT
choice/NN
of/IN
initial/JJ
parities/NNS
is/VBZ
crucial/JJ
,/,
for/IN
example/NN
,/,
and/CC
perhaps/RB
he/PRP
picked/VBD
the/DT
wrong/JJ
pound-DM/JJ
rate/NN
./.
For/IN
that/DT
matter/NN
,/,
perhaps/RB
he/PRP
fixed/VBD
to/TO
the/DT
wrong/JJ
currency/NN
./.
We/PRP
sympathize/VBP
with/IN
Mrs./NNP
Thatcher/NNP
's/POS
reluctance/NN
to/TO
tie/VB
her/PRP$
currency/NN
to/TO
one/CD
governed/VBN
by/IN
the/DT
domestic/JJ
political/JJ
imperatives/NNS
of/IN
West/NNP
Germany/NNP
./.
Perhaps/RB
the/DT
shock/NN
would/MD
have/VB
been/VBN
less/JJR
if/IN
they/PRP
'd/VBD
fixed/VBN
to/TO
another/DT
low-tax/NN
,/,
deregulated/VBN
,/,
supply-side/JJ
economy/NN
./.
Alan/NNP
Reynolds/NNP
of/IN
Polyconomics/NNP
adds/VBZ
his/PRP$
suspicion/NN
that/IN
the/DT
unrecognized/JJ
inflationary/JJ
culprit/NN
is/VBZ
the/DT
budget/NN
surplus/NN
./.
Those/DT
who/WP
can/MD
shake/VB
Keynesian/JJ
ghosts/NNS
out/IN
of/IN
their/PRP$
heads/NNS
might/MD
recognize/VB
that/IN
the/DT
retirement/NN
of/IN
gilts/NNS
for/IN
cash/NN
is/VBZ
equivalent/JJ
to/TO
an/DT
expansionary/JJ
open-market/NN
operation/NN
,/,
indeed/RB
,/,
it/PRP
is/VBZ
the/DT
definition/NN
of/IN
an/DT
open/JJ
market/NN
operation/NN
to/TO
expand/VB
the/DT
money/NN
supply/NN
./.
Mr./NNP
Reynolds/NNP
also/RB
notes/VBZ
that/IN
since/IN
British/JJ
banks/NNS
have/VBP
no/DT
reserve/NN
requirements/NNS
,/,
high/JJ
interest/NN
rates/NNS
are/VBP
less/RBR
likely/JJ
to/TO
curb/VB
inflation/NN
than/IN
to/TO
cause/VB
recession/NN
./.
We/PRP
would/MD
add/VB
that/IN
in/IN
political/JJ
terms/NNS
,/,
Mrs./NNP
Thatcher/NNP
's/POS
problem/NN
was/VBD
failing/VBG
to/TO
decide/VB
between/IN
the/DT
Chancellor/NNP
and/CC
her/PRP$
adviser/NN
./.
In/IN
the/DT
end/NN
,/,
neither/DT
policy/NN
was/VBD
followed/VBN
,/,
and/CC
instead/RB
of/IN
learning/VBG
anything/NN
we/PRP
are/VBP
left/VBN
with/IN
a/DT
mystery/NN
./.
In/IN
particular/JJ
,/,
``/``
shadowing/VBG
''/''
a/DT
currency/NN
is/VBZ
anything/NN
but/CC
fixing/VBG
;/:
it/PRP
is/VBZ
an/DT
open/JJ
announcement/NN
that/IN
the/DT
exchange/NN
rate/NN
target/NN
has/VBZ
no/DT
credibility/NN
./.
All/PDT
the/DT
more/RBR
so/RB
when/WRB
strong/JJ
voices/NNS
are/VBP
heard/VBN
opposing/VBG
the/DT
policy/NN
./.
Better/JJR
to/TO
have/VB
a/DT
true/JJ
monetarist/NN
policy/NN
,/,
just/RB
for/IN
the/DT
experience/NN
./.
So/IN
Mr./NNP
Lawson/NNP
had/VBD
to/TO
resign/VB
./.
In/IN
the/DT
end/NN
his/PRP$
move/NN
was/VBD
sparked/VBN
by/IN
remarks/NNS
in/IN
excerpts/NNS
from/IN
Sir/NNP
Alan/NNP
's/POS
autobiography/NN
in/IN
The/DT
American/NNP
Economist/NNP
,/,
a/DT
10,000-circulation/JJ
academic/JJ
journal/NN
./.
But/CC
it/PRP
was/VBD
the/DT
underlying/VBG
situation/NN
that/WDT
became/VBD
intolerable/JJ
./.
What/WP
Mr./NNP
Major/NNP
and/CC
Mrs./NNP
Thatcher/NNP
will/MD
do/VB
now/RB
remains/VBZ
to/TO
be/VB
seen/VBN
./.
They/PRP
confront/VBP
stubborn/JJ
inflation/NN
and/CC
a/DT
sagging/VBG
economy/NN
,/,
that/WDT
is/VBZ
to/TO
say/VB
,/,
stagflation/NN
./.
This/DT
can/MD
not/RB
be/VB
solved/VBN
by/IN
provoking/VBG
a/DT
further/JJ
downturn/NN
;/:
reducing/VBG
the/DT
supply/NN
of/IN
goods/NNS
does/VBZ
not/RB
solve/VB
inflation/NN
./.
Our/PRP$
advice/NN
is/VBZ
this/DT
:/:
Immediately/RB
return/VB
the/DT
government/NN
surpluses/NNS
to/TO
the/DT
economy/NN
through/IN
incentive-maximizing/JJ
tax/NN
cuts/NNS
,/,
and/CC
find/VB
some/DT
monetary/JJ
policy/NN
target/NN
that/WDT
balances/VBZ
both/DT
supply/NN
and/CC
demand/NN
for/IN
money/NN
which/WDT
neither/DT
aggregates/NNS
nor/CC
interest/NN
rates/NNS
can/MD
do/VB
)/)
./.
This/DT
was/VBD
the/DT
version/NN
of/IN
supply-side/JJ
economics/NNS
that/IN
,/,
in/IN
the/DT
late/JJ
1970s/CD
and/CC
early/RB
'80s/CD
,/,
worked/VBD
in/IN
America/NNP
and/CC
world-wide/JJ
to/TO
solve/VB
a/DT
far/RB
more/RBR
serious/JJ
stagflation/NN
than/IN
afflicts/VBZ
Britain/NNP
today/NN
./.
Ogilvy/NNP
&/CC
Mather/NNP
,/,
whose/WP$
declining/VBG
profitability/NN
prompted/VBD
its/PRP$
takeover/NN
by/IN
WPP/NNP
Group/NNP
earlier/RBR
this/DT
year/NN
,/,
will/MD
see/VB
its/PRP$
profit/NN
margins/NNS
bounce/VB
back/RB
to/TO
the/DT
``/``
11.5/CD
%/NN
range/NN
''/''
in/IN
1990/CD
,/,
said/VBD
Graham/NNP
Phillips/NNP
,/,
the/DT
agency/NN
's/POS
new/JJ
chairman-elect/NN
./.
The/DT
ad/NN
agency/NN
's/POS
pretax/NN
profit/NN
margins/NNS
were/VBD
slightly/RB
under/IN
10/CD
%/NN
at/IN
the/DT
time/NN
of/IN
the/DT
takeover/NN
,/,
according/VBG
to/TO
analysts/NNS
;/:
London-based/JJ
WPP/NNP
's/POS
goal/NN
is/VBZ
to/TO
increase/VB
margins/NNS
to/TO
12/CD
%/NN
./.
Mr./NNP
Phillips/NNP
made/VBD
his/PRP$
comments/NNS
during/IN
an/DT
interview/NN
detailing/VBG
his/PRP$
plans/NNS
for/IN
the/DT
agency/NN
./.
British-born/JJ
,/,
the/DT
24-year/JJ
Ogilvy/NNP
veteran/NN
was/VBD
named/VBN
last/JJ
week/NN
to/TO
succeed/VB
Kenneth/NNP
Roman/NNP
,/,
who/WP
is/VBZ
leaving/VBG
by/IN
year/NN
's/POS
end/NN
to/TO
take/VB
a/DT
top/JJ
post/NN
at/IN
American/NNP
Express/NNP
,/,
an/DT
Ogilvy/NNP
client/NN
./.
Surrounded/VBN
by/IN
stacks/NNS
of/IN
paper/NN
,/,
two/CD
computers/NNS
and/CC
photos/NNS
of/IN
himself/PRP
boating/VBG
and/CC
flying/VBG
,/,
Mr./NNP
Phillips/NNP
laid/VBD
out/IN
several/JJ
changes/NNS
he/PRP
hopes/VBZ
to/TO
make/VB
at/IN
the/DT
agency/NN
./.
First/RB
and/CC
foremost/RB
,/,
Mr./NNP
Phillips/NNP
said/VBD
he/PRP
hopes/VBZ
to/TO
improve/VB
client/NN
service/NN
./.
Ogilvy/NNP
under/IN
the/DT
fastidious/JJ
Mr./NNP
Roman/NNP
gained/VBD
a/DT
reputation/NN
as/IN
occasionally/RB
being/VBG
high-handed/JJ
in/IN
its/PRP$
treatment/NN
of/IN
clients/NNS
,/,
of/IN
preaching/VBG
what/WDT
strategy/NN
a/DT
client/NN
should/MD
--/:
indeed/RB
,/,
must/MD
--/:
follow/VB
./.
And/CC
some/DT
of/IN
its/PRP$
top/JJ
client-service/JJ
executives/NNS
,/,
including/VBG
Mr./NNP
Phillips/NNP
,/,
were/VBD
promoted/VBN
to/TO
the/DT
point/NN
they/PRP
were/VBD
saddled/VBN
with/IN
administrative/JJ
duties/NNS
,/,
with/IN
little/JJ
time/NN
to/TO
see/VB
clients/NNS
./.
But/CC
Mr./NNP
Phillips/NNP
recently/RB
freed/VBD
himself/PRP
up/IN
to/TO
spend/VB
more/JJR
time/NN
with/IN
clients/NNS
by/IN
delegating/VBG
much/JJ
of/IN
his/PRP$
administrative/JJ
work/NN
to/TO
a/DT
deputy/NN
./.
He/PRP
also/RB
plans/VBZ
to/TO
get/VB
to/TO
know/VB
clients/NNS
that/IN
Mr./NNP
Roman/NNP
was/VBD
closer/JJR
to/TO
,/,
such/JJ
as/IN
Lever/NNP
Brothers/NNPS
,/,
American/NNP
Express/NNP
and/CC
Seagram/NNP
./.
The/DT
two/CD
men/NNS
are/VBP
planning/VBG
joint/JJ
visits/NNS
to/TO
a/DT
number/NN
of/IN
clients/NNS
to/TO
attempt/VB
to/TO
smoothly/RB
hand/VB
over/IN
the/DT
reins/NNS
./.
``/``
Clients/NNS
want/VBP
to/TO
see/VB
more/JJR
of/IN
our/PRP$
senior/JJ
people/NNS
involved/VBN
in/IN
the/DT
business/NN
--/:
not/RB
once/IN
a/DT
month/NN
,/,
but/CC
two/CD
or/CC
three/CD
times/NNS
a/DT
week/NN
,/,
''/''
he/PRP
said/VBD
./.
Mr./NNP
Phillips/NNP
also/RB
hopes/VBZ
to/TO
finally/RB
implement/VB
a/DT
reorganization/NN
announced/VBN
earlier/RBR
this/DT
year/NN
but/CC
put/VBN
on/IN
hold/NN
by/IN
the/DT
WPP/NNP
takeover/NN
./.
The/DT
reorganization/NN
is/VBZ
supposed/VBN
to/TO
make/VB
one-stop/JJ
shopping/NN
--/:
buying/VBG
advertising/NN
,/,
public/JJ
relations/NNS
and/CC
design/NN
all/DT
in/IN
one/CD
place/NN
,/,
or/CC
``/``
Ogilvy/NNP
Orchestration/NNP
''/''
in/IN
Ogilvyspeak/NNP
--/:
a/DT
reality/NN
./.
Under/IN
the/DT
reorganization/NN
,/,
Ogilvy/NNP
plans/VBZ
to/TO
name/VB
one/CD
executive/NN
on/IN
each/DT
account/NN
as/IN
a/DT
``/``
client/NN
service/NN
director/NN
''/''
to/TO
work/VB
as/IN
the/DT
client/NN
's/POS
single/JJ
contact/NN
for/IN
all/PDT
those/DT
services/NNS
./.
``/``
There/EX
is/VBZ
little/JJ
or/CC
no/DT
integration/NN
of/IN
our/PRP$
work/NN
,/,
quality/NN
is/VBZ
spotty/JJ
,/,
there/EX
is/VBZ
no/DT
single/JJ
focus/NN
,/,
''/''
Mr./NNP
Phillips/NNP
complained/VBD
to/TO
staffers/NNS
in/IN
March/NNP
,/,
when/WRB
the/DT
reorganization/NN
was/VBD
announced/VBN
./.
Now/RB
Mr./NNP
Phillips/NNP
says/VBZ
he/PRP
hopes/VBZ
to/TO
have/VB
the/DT
new/JJ
system/NN
in/IN
place/NN
for/IN
several/JJ
clients/NNS
--/:
including/VBG
American/NNP
Express/NNP
,/,
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
and/CC
Ryder/NNP
--/:
by/IN
year/NN
's/POS
end/NN
./.
Industry/NN
executives/NNS
and/CC
analysts/NNS
are/VBP
divided/VBN
on/IN
whether/IN
Mr./NNP
Phillips/NNP
is/VBZ
up/IN
to/TO
the/DT
task/NN
./.
He/PRP
is/VBZ
n't/RB
as/RB
well-known/JJ
to/TO
clients/NNS
as/IN
is/VBZ
Mr./NNP
Roman/NNP
./.
Under/IN
his/PRP$
watch/NN
,/,
office/NN
politicking/NN
was/VBD
often/RB
rampant/JJ
in/IN
the/DT
agency/NN
's/POS
New/NNP
York/NNP
operation/NN
and/CC
the/DT
office/NN
there/RB
has/VBZ
had/VBN
a/DT
dismal/JJ
new-business/NN
record/NN
for/IN
more/JJR
than/IN
a/DT
year/NN
./.
And/CC
while/IN
last/JJ
week/NN
the/DT
agency/NN
hired/VBD
a/DT
top/JJ
Chiat\/Day\/Mojo/NNP
executive/NN
,/,
Bill/NNP
Hamilton/NNP
,/,
to/TO
try/VB
to/TO
bolster/VB
its/PRP$
work/NN
,/,
``/``
Graham/NNP
has/VBZ
to/TO
get/VB
the/DT
revenue/NN
of/IN
that/DT
New/NNP
York/NNP
office/NN
moving/VBG
,/,
''/''
says/VBZ
James/NNP
Dougherty/NNP
,/,
an/DT
analyst/NN
with/IN
County/NNP
NatWest/NNP
Securities/NNPS
./.
The/DT
one/CD
thing/NN
Mr./NNP
Phillips/NNP
clearly/RB
does/VBZ
have/VB
going/VBG
for/IN
him/PRP
is/VBZ
continuity/NN
,/,
although/IN
it/PRP
is/VBZ
n't/RB
certain/JJ
if/IN
that/DT
will/MD
be/VB
enough/RB
./.
As/IN
Mr./NNP
Dougherty/NNP
says/VBZ
,/,
``/``
The/DT
last/JJ
thing/NN
they/PRP
need/VBP
is/VBZ
enormous/JJ
disruption/NN
at/IN
the/DT
top/NN
.../:
and/CC
Graham/NNP
is/VBZ
obviously/RB
a/DT
long-term/JJ
member/NN
of/IN
the/DT
Ogilvy/NNP
Mafia/NNP
,/,
as/IN
we/PRP
call/VBP
it/PRP
./.
''/''
Mr./NNP
Phillips/NNP
and/CC
Mr./NNP
Roman/NNP
are/VBP
indeed/RB
quite/RB
similar/JJ
in/IN
substance/NN
,/,
if/IN
not/RB
in/IN
style/NN
./.
While/IN
Mr./NNP
Roman/NNP
is/VBZ
a/DT
workaholic/NN
detailsman/NN
,/,
Mr./NNP
Phillips/NNP
would/MD
rather/RB
delegate/VB
,/,
leaving/VBG
him/PRP
time/NN
for/IN
his/PRP$
interests/NNS
outside/IN
the/DT
office/NN
./.
Mr./NNP
Roman/NNP
,/,
by/IN
contrast/NN
,/,
seems/VBZ
rarely/RB
to/TO
cut/VB
loose/JJ
at/IN
all/DT
,/,
although/IN
he/PRP
did/VBD
appear/VB
at/IN
Ogilvy/NNP
's/POS
Halloween/NNP
party/NN
Friday/NNP
decked/VBN
out/IN
in/IN
duck/NN
feet/NNS
and/CC
a/DT
duck/NN
hat/NN
,/,
costumed/VBN
as/IN
a/DT
``/``
lame/JJ
duck/NN
./.
''/''
Mr./NNP
Phillips/NNP
said/VBD
the/DT
company/NN
's/POS
expected/VBN
margin/NN
improvement/NN
will/MD
be/VB
all/DT
but/CC
inevitable/JJ
,/,
given/VBN
that/IN
the/DT
company/NN
's/POS
profitability/NN
was/VBD
dragged/VBN
down/IN
this/DT
year/NN
by/IN
an/DT
expensive/JJ
move/NN
to/TO
luxurious/JJ
,/,
oversized/JJ
new/JJ
New/NNP
York/NNP
headquarters/NN
./.
The/DT
move/NN
,/,
budgeted/VBN
at/IN
about/IN
$/$
7/CD
million/CD
,/,
actually/RB
came/VBD
in/IN
at/IN
about/IN
$/$
10/CD
million/CD
,/,
he/PRP
said/VBD
./.
But/CC
margins/NNS
will/MD
be/VB
helped/VBN
,/,
too/RB
,/,
by/IN
some/DT
other/JJ
cost-saving/JJ
steps/NNS
./.
Ogilvy/NNP
eliminated/VBD
the/DT
mail/NN
room/NN
staff/NN
,/,
closed/VBD
the/DT
executive/NN
dining/NN
room/NN
and/CC
,/,
after/IN
the/DT
takeover/NN
,/,
let/VBD
go/VB
half/PDT
a/DT
dozen/NN
financial/JJ
executives/NNS
./.
WPP/NNP
,/,
which/WDT
assumes/VBZ
financial/JJ
control/NN
of/IN
its/PRP$
businesses/NNS
in/IN
a/DT
hands-on/JJ
way/NN
,/,
instituted/VBD
a/DT
new/JJ
financial/JJ
system/NN
and/CC
plans/VBZ
to/TO
sublet/VB
some/DT
floors/NNS
in/IN
Ogilvy/NNP
's/POS
new/JJ
headquarters/NN
building/NN
to/TO
outsiders/NNS
./.
The/DT
fact/NN
that/IN
the/DT
agency/NN
will/MD
now/RB
be/VB
part/NN
of/IN
a/DT
U.K./NNP
company/NN
,/,
under/IN
British/JJ
accounting/NN
rules/NNS
,/,
will/MD
also/RB
make/VB
the/DT
profit/NN
picture/NN
look/VB
better/RB
./.
Y&R/NNP
's/POS
Klein/NNP
Steps/VBZ
Down/IN
Arthur/NNP
Klein/NNP
,/,
president/NN
of/IN
Young/NNP
&/CC
Rubicam/NNP
's/POS
New/NNP
York/NNP
office/NN
,/,
stepped/VBD
down/IN
``/``
temporarily/RB
''/''
in/IN
the/DT
wake/NN
of/IN
charges/NNS
by/IN
a/DT
federal/JJ
grand/JJ
jury/NN
in/IN
New/NNP
Haven/NNP
,/,
Conn./NNP
,/,
that/IN
he/PRP
,/,
the/DT
agency/NN
and/CC
another/DT
top/JJ
executive/NN
bribed/VBD
Jamaican/JJ
tourist/NN
officials/NNS
to/TO
win/VB
its/PRP$
account/NN
in/IN
1981/CD
./.
In/IN
an/DT
internal/JJ
memo/NN
,/,
Alex/NNP
Kroll/NNP
,/,
the/DT
agency/NN
's/POS
chairman/NN
,/,
said/VBD
Mr./NNP
Klein/NNP
decided/VBD
to/TO
remove/VB
himself/PRP
to/TO
minimize/VB
``/``
negative/JJ
reaction/NN
''/''
from/IN
prospective/JJ
clients/NNS
and/CC
others/NNS
and/CC
to/TO
prepare/VB
for/IN
his/PRP$
defense/NN
./.
``/``
The/DT
fact/NN
that/IN
he/PRP
is/VBZ
in/IN
the/DT
process/NN
of/IN
defending/VBG
himself/PRP
against/IN
the/DT
present/JJ
charges/NNS
could/MD
conceivably/RB
have/VB
an/DT
adverse/JJ
impact/NN
on/IN
Y&R/NNP
,/,
''/''
Mr./NNP
Kroll/NNP
wrote/VBD
./.
He/PRP
said/VBD
Mr./NNP
Klein/NNP
will/MD
return/VB
to/TO
his/PRP$
post/NN
at/IN
the/DT
end/NN
of/IN
the/DT
trial/NN
``/``
at/IN
which/WDT
he/PRP
will/MD
be/VB
vindicated/VBN
./.
''/''
Mr./NNP
Klein/NNP
will/MD
work/VB
with/IN
Mr./NNP
Kroll/NNP
on/IN
some/DT
of/IN
the/DT
agency/NN
's/POS
joint/JJ
venture/NN
activities/NNS
and/CC
acquisitions/NNS
while/IN
the/DT
case/NN
is/VBZ
pending/VBG
./.
Peter/NNP
Georgescu/NNP
,/,
president/NN
of/IN
Y&R/NNP
's/POS
ad/NN
operations/NNS
,/,
will/MD
assume/VB
Mr./NNP
Klein/NNP
's/POS
day-to-day/JJ
role/NN
./.
Wells/NNP
Rich/NNP
's/POS
New/NNP
Partner/NNP
Wells/NNP
,/,
Rich/NNP
,/,
Greene/NNP
named/VBD
Cheryl/NNP
Heller/NNP
as/IN
an/DT
executive/JJ
vice/NN
president/NN
and/CC
creative/JJ
partner/NN
in/IN
its/PRP$
image/NN
group/NN
,/,
which/WDT
concentrates/VBZ
on/IN
fashion/NN
and/CC
visually/RB
oriented/VBN
advertising/NN
./.
Ms./NNP
Heller/NNP
,/,
38/CD
,/,
had/VBD
headed/VBN
up/IN
Boston/NNP
agency/NN
Heller\/Breene/NNP
,/,
a/DT
unit/NN
of/IN
WCRS/NNP
./.
The/DT
agency/NN
,/,
with/IN
about/IN
$/$
35/CD
million/CD
in/IN
billings/NNS
,/,
will/MD
be/VB
dissolved/VBN
,/,
with/IN
some/DT
of/IN
its/PRP$
staffers/NNS
absorbed/VBN
by/IN
WCRS/NNP
's/POS
Della/NNP
Femina/NNP
McNamee/NNP
unit/NN
in/IN
Boston/NNP
,/,
Ms./NNP
Heller/NNP
said/VBD
./.
She/PRP
said/VBD
it/PRP
was/VBD
too/RB
early/JJ
to/TO
say/VB
what/WP
would/MD
happen/VB
to/TO
its/PRP$
clients/NNS
,/,
including/VBG
Reebok/NNP
and/CC
Apple/NNP
./.
At/IN
Wells/NNP
Rich/NNP
,/,
Ms./NNP
Heller/NNP
will/MD
concentrate/VB
on/IN
accounts/NNS
that/WDT
include/VBP
Philip/NNP
Morris/NNP
's/POS
Benson/NNP
&/CC
Hedges/NNP
cigarette/NN
brand/NN
,/,
which/WDT
relies/VBZ
on/IN
print/NN
ads/NNS
,/,
Ms./NNP
Heller/NNP
's/POS
specialty/NN
./.
As/IN
previously/RB
reported/VBN
,/,
the/DT
account/NN
is/VBZ
troubled/JJ
,/,
with/IN
Philip/NNP
Morris/NNP
asking/VBG
Backer/NNP
Spielvogel/NNP
Bates/NNP
,/,
Ogilvy/NNP
&/CC
Mather/NNP
,/,
and/CC
possibly/RB
others/NNS
to/TO
try/VB
their/PRP$
hand/NN
at/IN
developing/VBG
new/JJ
creative/JJ
work/NN
./.
Wells/NNP
Rich/NNP
declined/VBD
to/TO
comment/VB
on/IN
the/DT
status/NN
of/IN
the/DT
account/NN
,/,
as/IN
did/VBD
the/DT
other/JJ
agencies/NNS
./.
Waxman/NNP
Industries/NNPS
Inc./NNP
said/VBD
holders/NNS
of/IN
$/$
6,542,000/CD
face/NN
amount/NN
of/IN
its/PRP$
6/CD
1\/4/CD
%/NN
convertible/JJ
subordinated/VBN
debentures/NNS
,/,
due/JJ
March/NNP
15/CD
,/,
2007/CD
,/,
have/VBP
elected/VBN
to/TO
convert/VB
the/DT
debt/NN
into/IN
about/IN
683,000/CD
common/JJ
shares/NNS
./.
The/DT
conversion/NN
price/NN
is/VBZ
$/$
9.58/CD
a/DT
share/NN
./.
The/DT
company/NN
said/VBD
the/DT
holders/NNS
represent/VBP
52/CD
%/NN
of/IN
the/DT
face/NN
amount/NN
of/IN
the/DT
debentures/NNS
./.
Waxman/NNP
sells/VBZ
a/DT
variety/NN
of/IN
hardware/NN
products/NNS
for/IN
the/DT
home/NN
repair/NN
market/NN
./.
R.H./NNP
Macy/NNP
&/CC
Co./NNP
,/,
the/DT
closely/RB
held/VBN
department/NN
store/NN
chain/NN
,/,
said/VBD
in/IN
a/DT
financial/JJ
filing/NN
Friday/NNP
that/IN
its/PRP$
sales/NNS
for/IN
the/DT
fiscal/JJ
fourth/JJ
quarter/NN
ended/VBD
July/NNP
29/CD
were/VBD
up/RB
10/CD
%/NN
to/TO
$/$
1.59/CD
billion/CD
against/IN
$/$
1.44/CD
billion/CD
a/DT
year/NN
earlier/RBR
./.
Comparable/JJ
store/NN
sales/NNS
for/IN
the/DT
quarter/NN
were/VBD
up/RB
7.3/CD
%/NN
./.
The/DT
net/JJ
loss/NN
for/IN
the/DT
quarter/NN
was/VBD
$/$
43.1/CD
million/CD
against/IN
a/DT
year-earlier/JJ
loss/NN
of/IN
$/$
106/CD
million/CD
./.
The/DT
loss/NN
in/IN
the/DT
fourth/JJ
quarter/NN
of/IN
1988/CD
reflected/VBN
in/IN
part/NN
expenses/NNS
for/IN
an/DT
unsuccessful/JJ
bid/NN
for/IN
Federated/NNP
Department/NNP
Stores/NNPS
Inc./NNP
,/,
as/RB
well/RB
as/IN
the/DT
restructuring/NN
of/IN
some/DT
of/IN
its/PRP$
department/NN
store/NN
operations/NNS
./.
For/IN
the/DT
year/NN
,/,
sales/NNS
were/VBD
up/RB
5.6/CD
%/NN
to/TO
$/$
6.97/CD
billion/CD
compared/VBN
with/IN
$/$
6.61/CD
billion/CD
in/IN
fiscal/JJ
1988/CD
./.
Sales/NNS
for/IN
both/DT
years/NNS
reflect/VBP
12-month/JJ
performances/NNS
for/IN
each/DT
year/NN
of/IN
I./NNP
Magnin/NNP
,/,
Bullock/NNP
's/POS
,/,
and/CC
Bullocks/NNP
Wilshire/NNP
./.
Macy/NNP
acquired/VBD
those/DT
three/CD
businesses/NNS
in/IN
May/NNP
1988/CD
./.
On/IN
a/DT
comparable/JJ
store/NN
basis/NN
,/,
including/VBG
the/DT
new/JJ
acquisitions/NNS
for/IN
both/DT
years/NNS
,/,
sales/NNS
for/IN
fiscal/JJ
1989/CD
were/VBD
up/RB
1.9/CD
%/NN
./.
Macy/NNP
reported/VBD
a/DT
net/JJ
loss/NN
for/IN
fiscal/JJ
1989/CD
of/IN
$/$
53.7/CD
million/CD
compared/VBN
with/IN
a/DT
net/JJ
loss/NN
of/IN
$/$
188.2/CD
million/CD
for/IN
fiscal/JJ
1988/CD
./.
The/DT
company/NN
's/POS
earnings/NNS
before/IN
interest/NN
,/,
taxes/NNS
and/CC
depreciation/NN
,/,
which/WDT
bondholders/NNS
use/VBP
a/DT
measurement/NN
of/IN
the/DT
chain/NN
's/POS
ability/NN
to/TO
pay/VB
its/PRP$
existing/VBG
debt/NN
,/,
increased/VBD
11/CD
%/NN
in/IN
fiscal/JJ
1989/CD
to/TO
$/$
926.1/CD
million/CD
from/IN
$/$
833.6/CD
million/CD
./.
The/DT
$/$
833.6/CD
million/CD
figures/NNS
includes/VBZ
the/DT
new/JJ
acquisitions/NNS
./.
Excluding/VBG
those/DT
businesses/NNS
,/,
earnings/NNS
before/IN
interest/NN
,/,
taxes/NNS
and/CC
depreciation/NN
for/IN
1988/CD
would/MD
have/VB
been/VBN
$/$
728.5/CD
million/CD
./.
As/IN
of/IN
Feb./NNP
1/CD
,/,
1990/CD
,/,
the/DT
Bullocks/NNP
Wilshire/NNP
stores/NNS
will/MD
operate/VB
as/IN
I./NNP
Magnin/NNP
stores/NNS
./.
Altogether/RB
,/,
Macy/NNP
and/CC
its/PRP$
subsidiaries/NNS
own/VBP
or/CC
lease/VBP
149/CD
department/NN
stores/NNS
and/CC
61/CD
specialty/NN
stores/NNS
nationwide/JJ
./.
Although/IN
management/NN
led/VBD
a/DT
leveraged/JJ
buy-out/NN
of/IN
R.H./NNP
Macy/NNP
in/IN
July/NNP
1986/CD
,/,
the/DT
company/NN
still/RB
makes/VBZ
financial/JJ
filings/NNS
because/IN
of/IN
its/PRP$
publicly/RB
traded/VBN
debt/NN
./.
The/DT
company/NN
estimates/VBZ
its/PRP$
total/JJ
debt/NN
at/IN
about/IN
$/$
5.2/CD
billion/CD
./.
This/DT
includes/VBZ
$/$
4.6/CD
billion/CD
of/IN
long-term/JJ
debt/NN
,/,
$/$
457.5/CD
million/CD
in/IN
short-term/JJ
debt/NN
,/,
and/CC
$/$
95.7/CD
million/CD
of/IN
the/DT
current/JJ
portion/NN
of/IN
long-term/JJ
debt/NN
./.
In/IN
a/DT
letter/NN
to/TO
investors/NNS
,/,
Chairman/NNP
Edward/NNP
S./NNP
Finkelstein/NNP
wrote/VBD
that/IN
he/PRP
expects/VBZ
the/DT
company/NN
to/TO
``/``
benefit/VB
from/IN
some/DT
of/IN
the/DT
disruption/NN
faced/VBN
by/IN
our/PRP$
competitors/NNS
./.
While/IN
our/PRP$
competitors/NNS
are/VBP
concerned/VBN
with/IN
their/PRP$
financial/JJ
viability/NN
and/CC
possible/JJ
ownership/NN
changes/NNS
,/,
we/PRP
will/MD
be/VB
concentrating/VBG
on/IN
buying/VBG
and/CC
selling/VBG
merchandise/NN
our/PRP$
customers/NNS
need/VBP
and/CC
want/VBP
./.
''/''
Mr./NNP
Finkelstein/NNP
is/VBZ
apparently/RB
referring/VBG
to/TO
B./NNP
Altman/NNP
and/CC
Bonwit/NNP
Teller/NNP
,/,
two/CD
New/NNP
York/NNP
retailers/NNS
that/WDT
have/VBP
recently/RB
filed/VBN
for/IN
Chapter/NN
11/CD
bankruptcy/NN
protection/NN
,/,
as/RB
well/RB
as/IN
the/DT
retail/JJ
chains/NNS
owned/VBN
by/IN
financially/RB
troubled/JJ
Campeau/NNP
Corp/NNP
./.
Those/DT
chains/NNS
include/VBP
Bloomingdale/NNP
's/POS
,/,
which/WDT
Campeau/NNP
recently/RB
said/VBD
it/PRP
will/MD
sell/VB
./.
Other/JJ
retail/JJ
properties/NNS
for/IN
sale/NN
include/VBP
Saks/NNP
Fifth/NNP
Avenue/NNP
and/CC
Marshall/NNP
Field/NNP
,/,
retailers/NNS
now/RB
owned/VBN
by/IN
B.A.T/NNP
PLC/NNP
,/,
the/DT
British/JJ
tobacco/NN
conglomerate/NN
./.
In/IN
his/PRP$
letter/NN
,/,
Mr./NNP
Finkelstein/NNP
also/RB
referred/VBD
to/TO
the/DT
recent/JJ
San/NNP
Francisco/NNP
earthquake/NN
./.
Mr./NNP
Finkelstein/NNP
flew/VBD
to/TO
San/NNP
Francisco/NNP
the/DT
day/NN
after/IN
the/DT
earthquake/NN
,/,
and/CC
found/VBD
that/IN
10/CD
to/TO
12/CD
of/IN
his/PRP$
company/NN
's/POS
stores/NNS
had/VBD
sustained/VBN
some/DT
damage/NN
,/,
including/VBG
the/DT
breakage/NN
of/IN
most/JJS
windows/NNS
at/IN
the/DT
I./NNP
Magnin/NNP
store/NN
on/IN
Union/NNP
Square/NNP
./.
``/``
The/DT
volume/NN
and/CC
profit/NN
impact/NN
on/IN
our/PRP$
fiscal/JJ
first/JJ
quarter/NN
will/MD
not/RB
be/VB
positive/JJ
,/,
but/CC
looking/VBG
at/IN
the/DT
whole/JJ
fiscal/JJ
year/NN
,/,
we/PRP
do/VBP
n't/RB
see/VB
the/DT
effect/NN
as/IN
material/NN
,/,
''/''
wrote/VBD
Mr./NNP
Finkelstein/NNP
./.
RJR/NNP
Nabisco/NNP
Inc./NNP
said/VBD
it/PRP
agreed/VBD
to/TO
sell/VB
its/PRP$
Baby/NNP
Ruth/NNP
,/,
Butterfinger/NNP
and/CC
Pearson/NNP
candy/NN
businesses/NNS
to/TO
Nestle/NNP
S.A./NNP
's/POS
Nestle/NNP
Foods/NNPS
unit/NN
for/IN
$/$
370/CD
million/CD
./.
The/DT
sale/NN
,/,
at/IN
a/DT
higher/JJR
price/NN
than/IN
some/DT
analysts/NNS
had/VBD
expected/VBN
,/,
helps/VBZ
the/DT
food/NN
and/CC
tobacco/NN
giant/NN
raise/VB
funds/NNS
to/TO
pay/VB
debt/NN
and/CC
boosts/NNS
Nestle/NNP
's/POS
7/CD
%/NN
share/NN
of/IN
the/DT
U.S./NNP
candy/NN
market/NN
to/TO
about/IN
12/CD
%/NN
./.
The/DT
candy/NN
businesses/NNS
had/VBD
sales/NNS
of/IN
about/IN
$/$
154/CD
million/CD
last/JJ
year/NN
,/,
which/WDT
was/VBD
roughly/RB
12/CD
%/NN
of/IN
total/JJ
revenue/NN
for/IN
RJR/NNP
's/POS
Planters/NNP
LifeSavers/NNPS
unit/NN
,/,
according/VBG
to/TO
a/DT
memorandum/NN
distributed/VBN
by/IN
RJR/NNP
's/POS
owner/NN
,/,
Kohlberg/NNP
Kravis/NNP
Roberts/NNP
&/CC
Co./NNP
,/,
to/TO
bankers/NNS
last/JJ
December/NNP
./.
The/DT
Nestle/NNP
acquisition/NN
includes/VBZ
a/DT
candy/NN
plant/NN
in/IN
Franklin/NNP
Park/NNP
,/,
Ill./NNP
,/,
which/WDT
employs/VBZ
about/IN
800/CD
workers/NNS
./.
The/DT
sale/NN
,/,
which/WDT
had/VBD
been/VBN
expected/VBN
,/,
is/VBZ
part/NN
of/IN
KKR/NNP
's/POS
program/NN
to/TO
pay/VB
down/IN
$/$
5/CD
billion/CD
of/IN
a/DT
$/$
6/CD
billion/CD
bridge/NN
loan/NN
by/IN
February/NNP
./.
Roughly/RB
$/$
2/CD
billion/CD
of/IN
that/DT
debt/NN
has/VBZ
already/RB
been/VBN
repaid/VBN
from/IN
previous/JJ
asset/NN
sales/NNS
,/,
and/CC
RJR/NNP
expects/VBZ
to/TO
use/VB
another/DT
$/$
2/CD
billion/CD
from/IN
the/DT
pending/VBG
,/,
two-part/JJ
sale/NN
of/IN
most/JJS
of/IN
its/PRP$
Del/NNP
Monte/NNP
unit/NN
./.
That/DT
sale/NN
,/,
however/RB
,/,
could/MD
still/RB
fall/VB
through/IN
if/IN
financing/NN
problems/NNS
develop/VBP
./.
Thus/RB
,/,
it/PRP
remains/VBZ
crucial/JJ
for/IN
RJR/NNP
to/TO
obtain/VB
top/JJ
dollar/NN
for/IN
its/PRP$
smaller/JJR
assets/NNS
like/IN
the/DT
candy/NN
brands/NNS
./.
Louis/NNP
Gerstner/NNP
Jr./NNP
,/,
chairman/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
New/NNP
York-based/JJ
RJR/NNP
,/,
called/VBD
the/DT
sale/NN
a/DT
``/``
significant/JJ
step/NN
''/''
in/IN
the/DT
company/NN
's/POS
divestiture/NN
program/NN
,/,
as/RB
well/RB
as/IN
a/DT
``/``
a/DT
strategic/JJ
divestiture/NN
./.
''/''
Since/IN
KKR/NNP
bought/VBD
RJR/NNP
in/IN
February/NNP
for/IN
$/$
25/CD
billion/CD
of/IN
debt/NN
,/,
it/PRP
has/VBZ
agreed/VBN
to/TO
sell/VB
nearly/RB
$/$
5/CD
billion/CD
of/IN
RJR/NNP
assets/NNS
./.
RJR/NNP
's/POS
executives/NNS
have/VBP
said/VBN
they/PRP
will/MD
dispense/VB
with/IN
certain/JJ
brands/NNS
,/,
in/IN
particular/JJ
,/,
that/WDT
are/VBP
n't/RB
leaders/NNS
in/IN
their/PRP$
markets/NNS
./.
``/``
RJR/NNP
Nabisco/NNP
and/CC
Planters/NNP
LifeSavers/NNPS
will/MD
concentrate/VB
more/RBR
on/IN
our/PRP$
own/JJ
core/NN
businesses/NNS
,/,
''/''
Mr./NNP
Gerstner/NNP
said/VBD
Friday/NNP
./.
Baby/NNP
Ruth/NNP
and/CC
Butterfinger/NNP
are/VBP
both/DT
among/IN
the/DT
top-selling/JJ
15/CD
chocolate/NN
bars/NNS
in/IN
the/DT
U.S./NNP
,/,
but/CC
RJR/NNP
's/POS
overall/JJ
share/NN
of/IN
the/DT
roughly/RB
$/$
5.1/CD
billion/CD
market/NN
is/VBZ
less/JJR
than/IN
5/CD
%/NN
./.
Nestle/NNP
's/POS
share/NN
of/IN
7/CD
%/NN
before/IN
Friday/NNP
's/POS
purchases/NNS
is/VBZ
far/RB
below/IN
the/DT
shares/NNS
of/IN
market/NN
leaders/NNS
Hershey/NNP
Foods/NNPS
Corp./NNP
and/CC
Mars/NNP
Inc./NNP
,/,
which/WDT
have/VBP
about/IN
40/CD
%/NN
and/CC
36/CD
%/NN
of/IN
the/DT
market/NN
,/,
respectively/RB
./.
``/``
This/DT
means/VBZ
Nestle/NNP
is/VBZ
now/RB
in/IN
the/DT
candybar/NN
business/NN
in/IN
a/DT
big/JJ
way/NN
,/,
''/''
said/VBD
Lisbeth/NNP
Echeandia/NNP
,/,
publisher/NN
of/IN
Orlando/NNP
,/,
Fla.-based/JJ
Confectioner/NNP
Magazine/NNP
./.
``/``
For/IN
them/PRP
,/,
it/PRP
makes/VBZ
all/DT
kinds/NNS
of/IN
sense/NN
./.
They/PRP
've/VBP
been/VBN
given/VBN
a/DT
mandate/NN
from/IN
Switzerland/NNP
''/''
to/TO
expand/VB
their/PRP$
U.S./NNP
chocolate/NN
operations/NNS
./.
Nestle/NNP
S.A./NNP
is/VBZ
based/VBN
in/IN
Vevey/NNP
,/,
Switzerland/NNP
./.
The/DT
new/JJ
candy/NN
bars/NNS
,/,
``/``
make/VBP
an/DT
important/JJ
contribution/NN
to/TO
our/PRP$
Nestle/NNP
Foods/NNPS
commitment/NN
to/TO
this/DT
very/RB
important/JJ
strategic/JJ
unit/NN
,/,
''/''
said/VBD
C./NNP
Alan/NNP
MacDonald/NNP
,/,
president/NN
of/IN
Nestle/NNP
Foods/NNPS
in/IN
Purchase/NNP
,/,
N.Y/NNP
./.
Aetna/NNP
Life/NNP
&/CC
Casualty/NNP
Co./NNP
's/POS
third-quarter/NN
net/JJ
income/NN
fell/VBD
22/CD
%/NN
to/TO
$/$
182.6/CD
million/CD
,/,
or/CC
$/$
1.63/CD
a/DT
share/NN
,/,
reflecting/VBG
the/DT
damages/NNS
from/IN
Hurricane/NNP
Hugo/NNP
and/CC
lower/JJR
results/NNS
for/IN
some/DT
of/IN
the/DT
company/NN
's/POS
major/JJ
divisions/NNS
./.
Catastrophe/NN
losses/NNS
reduced/VBD
Aetna/NNP
's/POS
net/JJ
income/NN
by/IN
$/$
50/CD
million/CD
,/,
including/VBG
$/$
36/CD
million/CD
from/IN
Hugo/NNP
./.
Last/JJ
year/NN
catastrophe/NN
losses/NNS
totaled/VBD
$/$
5/CD
million/CD
,/,
when/WRB
net/NN
was/VBD
$/$
235.5/CD
million/CD
,/,
or/CC
$/$
2.07/CD
a/DT
share/NN
./.
The/DT
year-earlier/JJ
results/NNS
have/VBP
been/VBN
restated/VBN
to/TO
reflect/VB
an/DT
accounting/NN
change/NN
./.
The/DT
insurer/NN
has/VBZ
started/VBN
processing/VBG
claims/NNS
from/IN
the/DT
Northern/NNP
California/NNP
earthquake/NN
nearly/RB
two/CD
weeks/NNS
ago/IN
./.
But/CC
because/IN
these/DT
claims/NNS
are/VBP
more/RBR
difficult/JJ
to/TO
evaluate/VB
and/CC
have/VBP
been/VBN
coming/VBG
in/IN
more/RBR
slowly/RB
,/,
the/DT
company/NN
has/VBZ
no/DT
estimate/NN
of/IN
the/DT
impact/NN
of/IN
the/DT
earthquake/NN
on/IN
fourth-quarter/NN
results/NNS
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
Friday/NNP
,/,
Aetna/NNP
closed/VBD
at/IN
$/$
60/CD
,/,
down/RB
50/CD
cents/NNS
./.
In/IN
the/DT
latest/JJS
quarter/NN
,/,
Aetna/NNP
had/VBD
a/DT
$/$
23/CD
million/CD
loss/NN
on/IN
its/PRP$
auto\/homeowners/NNS
line/NN
,/,
compared/VBN
with/IN
earnings/NNS
of/IN
$/$
33/CD
million/CD
last/JJ
year/NN
./.
Profit/NN
for/IN
its/PRP$
commercial/JJ
insurance/NN
division/NN
fell/VBD
30/CD
%/NN
to/TO
$/$
59/CD
million/CD
,/,
reflecting/VBG
higher/JJR
catastrophe/NN
losses/NNS
and/CC
the/DT
price/NN
war/NN
in/IN
the/DT
property\/casualty/NN
market/NN
for/IN
nearly/RB
three/CD
years/NNS
./.
However/RB
,/,
Aetna/NNP
's/POS
employee/NN
benefits/NNS
division/NN
,/,
which/WDT
includes/VBZ
its/PRP$
group/NN
health/NN
insurance/NN
operations/NNS
,/,
posted/VBD
a/DT
34/CD
%/NN
profit/NN
gain/NN
to/TO
$/$
106/CD
million/CD
./.
Third-quarter/NN
results/NNS
included/VBD
net/JJ
realized/VBN
capital/NN
gains/NNS
of/IN
$/$
48/CD
million/CD
,/,
which/WDT
included/VBD
$/$
27/CD
million/CD
from/IN
the/DT
sale/NN
of/IN
Federated/NNP
Investors/NNPS
in/IN
August/NNP
and/CC
a/DT
$/$
15/CD
million/CD
tax/NN
credit/NN
./.
In/IN
the/DT
nine/CD
months/NNS
,/,
net/NN
rose/VBD
4.3/CD
%/NN
to/TO
$/$
525.8/CD
million/CD
or/CC
$/$
4.67/CD
a/DT
share/NN
,/,
from/IN
$/$
504.2/CD
million/CD
,/,
or/CC
$/$
4.41/CD
a/DT
share/NN
,/,
last/JJ
year/NN
./.
Out/IN
of/IN
the/DT
mouths/NNS
of/IN
revolutionaries/NNS
are/VBP
coming/VBG
words/NNS
of/IN
moderation/NN
./.
Here/RB
,/,
at/IN
a/DT
soccer/NN
stadium/NN
near/IN
the/DT
black/JJ
township/NN
of/IN
Soweto/NNP
yesterday/NN
,/,
were/VBD
eight/CD
leaders/NNS
of/IN
the/DT
African/NNP
National/NNP
Congress/NNP
,/,
seven/CD
of/IN
whom/WP
had/VBD
spent/VBN
most/JJS
of/IN
their/PRP$
adult/NN
lives/NNS
in/IN
prison/NN
for/IN
sabotage/NN
and/CC
conspiracy/NN
to/TO
overthrow/VB
the/DT
government/NN
./.
Here/RB
were/VBD
more/JJR
than/IN
70,000/CD
ANC/NNP
supporters/NNS
,/,
gathering/VBG
for/IN
the/DT
first/JJ
ANC/NNP
rally/NN
inside/IN
South/NNP
Africa/NNP
since/IN
the/DT
black/JJ
liberation/NN
movement/NN
was/VBD
banned/VBN
in/IN
1960/CD
./.
Here/RB
was/VBD
the/DT
state/NN
security/NN
appartus/NN
poised/VBN
to/TO
pounce/VB
on/IN
any/DT
words/NNS
or/CC
acts/NNS
of/IN
provocation/NN
,/,
let/VB
alone/JJ
revolution/NN
./.
But/CC
the/DT
words/NNS
that/WDT
boomed/VBD
over/IN
the/DT
loudspeakers/NNS
bore/VBD
messages/NNS
of/IN
peace/NN
,/,
unity/NN
,/,
negotiation/NN
and/CC
discipline/NN
./.
``/``
We/PRP
stand/VBP
for/IN
peace/NN
today/NN
and/CC
we/PRP
will/MD
stand/VB
for/IN
peace/NN
tomorrow/NN
,/,
''/''
said/VBD
Walter/NNP
Sisulu/NNP
,/,
the/DT
ANC/NNP
's/POS
former/JJ
secretary/NN
general/NN
who/WP
,/,
along/IN
with/IN
five/CD
of/IN
his/PRP$
colleagues/NNS
,/,
served/VBD
26/CD
years/NNS
in/IN
prison/NN
before/IN
being/VBG
released/VBN
two/CD
weeks/NNS
ago/IN
./.
Some/DT
members/NNS
of/IN
the/DT
huge/JJ
crowd/NN
shouted/VBD
``/``
Viva/FW
peace/NN
,/,
viva/FW
./.
''/''
These/DT
are/VBP
curious/JJ
times/NNS
in/IN
South/JJ
African/JJ
politics/NNS
./.
The/DT
government/NN
and/CC
the/DT
ANC/NNP
,/,
the/DT
bitterest/JJS
of/IN
enemies/NNS
,/,
are/VBP
engaged/VBN
in/IN
an/DT
elaborate/JJ
mating/NN
dance/NN
designed/VBN
to/TO
entice/VB
each/DT
other/JJ
to/TO
the/DT
negotiating/VBG
table/NN
./.
Pretoria/NN
releases/VBZ
the/DT
ANC/NNP
leaders/NNS
,/,
most/JJS
of/IN
whom/WP
were/VBD
serving/VBG
life/NN
sentences/NNS
,/,
and/CC
allows/VBZ
them/PRP
to/TO
speak/VB
freely/RB
,/,
hoping/VBG
that/IN
the/DT
ANC/NNP
will/MD
abandon/VB
its/PRP$
use/NN
of/IN
violence/NN
./.
The/DT
ANC/NNP
leaders/NNS
speak/VBP
in/IN
tones/NNS
of/IN
moderation/NN
,/,
emphasizing/VBG
discipline/NN
,/,
hoping/VBG
the/DT
government/NN
will/MD
be/VB
encouraged/VBN
to/TO
take/VB
further/JJ
steps/NNS
,/,
such/JJ
as/IN
freeing/VBG
Nelson/NNP
Mandela/NNP
,/,
the/DT
most/RBS
prominent/JJ
ANC/NNP
figure/NN
,/,
and/CC
unbanning/VBG
the/DT
organization/NN
./.
The/DT
government/NN
of/IN
President/NNP
F.W./NNP
de/NNP
Klerk/NNP
is/VBZ
using/VBG
this/DT
situation/NN
to/TO
improve/VB
its/PRP$
international/JJ
image/NN
and/CC
head/VB
off/IN
further/JJ
economic/JJ
sanctions/NNS
./.
Meanwhile/RB
,/,
the/DT
many/JJ
organizations/NNS
inside/IN
the/DT
country/NN
that/WDT
back/VBP
the/DT
ANC/NNP
are/VBP
taking/VBG
the/DT
opportunity/NN
to/TO
regain/VB
their/PRP$
strength/NN
and/CC
mobilize/VB
their/PRP$
supporters/NNS
even/RB
though/IN
the/DT
state/NN
of/IN
emergency/NN
,/,
which/WDT
has/VBZ
severely/RB
curtailed/VBN
black/JJ
opposition/NN
,/,
remains/VBZ
in/IN
force/NN
./.
The/DT
result/NN
is/VBZ
that/IN
the/DT
unthinkable/JJ
and/CC
illogical/JJ
are/VBP
happening/VBG
./.
Six/CD
months/NNS
ago/IN
,/,
government/NN
approval/NN
for/IN
an/DT
ANC/NNP
rally/NN
was/VBD
inconceivable/JJ
./.
Equally/RB
inconceivable/JJ
is/VBZ
that/IN
the/DT
ANC/NNP
,/,
given/VBN
the/DT
chance/NN
to/TO
hold/VB
a/DT
rally/NN
,/,
would/MD
extend/VB
a/DT
hand/NN
,/,
albeit/IN
warily/RB
,/,
to/TO
the/DT
government/NN
./.
In/IN
a/DT
message/NN
read/VBN
out/IN
at/IN
the/DT
rally/NN
,/,
exiled/VBD
ANC/NNP
President/NNP
Oliver/NNP
Tambo/NNP
,/,
who/WP
ca/MD
n't/RB
legally/RB
be/VB
quoted/VBN
in/IN
South/NNP
Africa/NNP
,/,
said/VBD
the/DT
country/NN
was/VBD
at/IN
a/DT
crossroads/NNS
and/CC
that/IN
Mr./NNP
de/NNP
Klerk/NNP
``/``
may/MD
yet/RB
earn/VB
a/DT
place/NN
among/IN
the/DT
peacemakers/NNS
of/IN
our/PRP$
country/NN
''/''
if/IN
he/PRP
chooses/VBZ
a/DT
``/``
path/NN
of/IN
genuine/JJ
political/JJ
settlement/NN
./.
''/''
Still/RB
,/,
this/DT
does/VBZ
n't/RB
mean/VB
that/IN
either/CC
the/DT
government/NN
or/CC
the/DT
ANC/NNP
is/VBZ
changing/VBG
stripes/NNS
--/:
or/CC
that/IN
either/DT
has/VBZ
moved/VBN
significantly/RB
closer/RBR
to/TO
the/DT
other/JJ
./.
The/DT
government/NN
may/MD
ease/VB
repression/NN
in/IN
some/DT
areas/NNS
,/,
but/CC
it/PRP
still/RB
keeps/VBZ
a/DT
tight/JJ
grip/NN
in/IN
others/NNS
./.
For/IN
instance/NN
,/,
it/PRP
releases/VBZ
Mr./NNP
Sisulu/NNP
without/IN
conditions/NNS
,/,
yet/RB
his/PRP$
son/NN
,/,
Zwelakhe/NNP
,/,
a/DT
newspaper/NN
editor/NN
,/,
is/VBZ
restricted/VBN
to/TO
his/PRP$
home/NN
much/RB
of/IN
the/DT
day/NN
and/CC
is/VBZ
n't/RB
allowed/VBN
to/TO
work/VB
as/IN
a/DT
journalist/NN
./.
The/DT
ANC/NNP
vows/VBZ
to/TO
keep/VB
up/IN
pressure/NN
on/IN
the/DT
government/NN
./.
Speakers/NNS
yesterday/NN
called/VBD
on/IN
foreign/JJ
governments/NNS
to/TO
increase/VB
sanctions/NNS
against/IN
Pretoria/NN
and/CC
urged/VBD
supporters/NNS
inside/IN
the/DT
country/NN
to/TO
continue/VB
defying/VBG
emergency/NN
restrictions/NNS
and/CC
racial/JJ
segregation/NN
,/,
known/VBN
as/IN
apartheid/NN
./.
``/``
We/PRP
can/MD
not/RB
wait/VB
on/IN
the/DT
government/NN
to/TO
make/VB
changes/NNS
at/IN
its/PRP$
own/JJ
pace/NN
,/,
''/''
Mr./NNP
Sisulu/NNP
said/VBD
./.
Because/IN
the/DT
ANC/NNP
remains/VBZ
banned/VBN
,/,
both/PDT
the/DT
government/NN
,/,
which/WDT
approved/VBD
the/DT
rally/NN
,/,
and/CC
the/DT
organizers/NNS
,/,
who/WP
orchestrated/VBD
it/PRP
,/,
denied/VBD
it/PRP
was/VBD
an/DT
ANC/NNP
rally/NN
./.
They/PRP
both/DT
called/VBD
it/PRP
a/DT
``/``
welcome/JJ
home/NN
''/''
gathering/NN
./.
Nevertheless/RB
,/,
an/DT
ANC/NNP
rally/NN
by/IN
any/DT
other/JJ
name/NN
is/VBZ
still/RB
an/DT
ANC/NNP
rally/NN
./.
The/DT
recently/RB
released/VBN
leaders/NNS
sat/VBD
high/RB
atop/IN
a/DT
podium/NN
in/IN
one/CD
section/NN
of/IN
the/DT
stadium/NN
stands/NNS
./.
Behind/IN
them/PRP
was/VBD
a/DT
huge/JJ
ANC/NNP
flag/NN
and/CC
an/DT
even/RB
bigger/JJR
sign/NN
that/WDT
said/VBD
``/``
ANC/NNP
Lives/VBZ
,/,
ANC/NNP
Leads/VBZ
./.
''/''
Next/JJ
to/TO
them/PRP
was/VBD
the/DT
red/JJ
flag/NN
of/IN
the/DT
outlawed/VBN
South/NNP
African/NNP
Communist/NNP
Party/NNP
,/,
which/WDT
has/VBZ
long/RB
been/VBN
an/DT
ANC/NNP
ally/NN
./.
In/IN
the/DT
stands/NNS
,/,
people/NNS
waved/VBD
ANC/NNP
flags/NNS
,/,
wore/VBD
ANC/NNP
T-shirts/NNS
,/,
sang/VBD
ANC/NNP
songs/NNS
and/CC
chanted/VBD
ANC/NNP
slogans/NNS
./.
``/``
Today/NN
,/,
''/''
said/VBD
Mr./NNP
Sisulu/NNP
,/,
``/``
the/DT
ANC/NNP
has/VBZ
captured/VBN
the/DT
center/NN
stage/NN
of/IN
political/JJ
life/NN
in/IN
South/NNP
Africa/NNP
./.
''/''
As/IN
a/DT
police/NN
helicopter/NN
circled/VBD
overhead/RB
,/,
Mr./NNP
Sisulu/NNP
repeated/VBD
the/DT
ANC/NNP
's/POS
demands/NNS
on/IN
the/DT
government/NN
to/TO
create/VB
a/DT
climate/NN
for/IN
negotiations/NNS
:/:
Release/VB
all/DT
political/JJ
prisoners/NNS
unconditionally/RB
;/:
lift/VB
all/DT
bans/NNS
and/CC
restrictions/NNS
on/IN
individuals/NNS
and/CC
organizations/NNS
;/:
remove/VB
all/DT
troops/NNS
from/IN
the/DT
black/JJ
townships/NNS
;/:
end/VB
the/DT
state/NN
of/IN
emergency/NN
,/,
and/CC
cease/VB
all/DT
political/JJ
trials/NNS
and/CC
political/JJ
executions/NNS
./.
If/IN
these/DT
conditions/NNS
are/VBP
met/VBN
,/,
he/PRP
said/VBD
,/,
the/DT
ANC/NNP
would/MD
be/VB
prepared/VBN
to/TO
discuss/VB
suspending/VBG
its/PRP$
guerrilla/NN
activities/NNS
./.
``/``
There/EX
can/MD
be/VB
no/DT
question/NN
of/IN
us/PRP
unilaterally/RB
abandoning/VBG
the/DT
armed/VBN
struggle/NN
,/,
''/''
he/PRP
said/VBD
./.
``/``
To/TO
date/NN
,/,
we/PRP
see/VBP
no/DT
clear/JJ
indication/NN
that/IN
the/DT
government/NN
is/VBZ
serious/JJ
about/IN
negotiations/NNS
./.
All/PDT
their/PRP$
utterances/NNS
are/VBP
vague/JJ
./.
''/''
Echoing/VBG
a/DT
phrase/NN
from/IN
Mr./NNP
de/NNP
Klerk/NNP
,/,
Mr./NNP
Sisulu/NNP
said/VBD
,/,
``/``
Let/VB
all/DT
of/IN
us/PRP
who/WP
love/VBP
this/DT
country/NN
engage/VB
in/IN
the/DT
task/NN
of/IN
building/VBG
a/DT
new/JJ
South/NNP
Africa/NNP
./.
''/''
When/WRB
Westinghouse/NNP
Electric/NNP
Corp./NNP
shuttered/VBD
its/PRP$
massive/JJ
steam/NN
turbine/NN
plant/NN
in/IN
Lester/NNP
,/,
Pa./NNP
,/,
three/CD
years/NNS
ago/IN
,/,
it/PRP
seemed/VBD
like/IN
the/DT
company/NN
had/VBD
pulled/VBN
the/DT
plug/NN
on/IN
its/PRP$
century-old/JJ
power/NN
generation/NN
business/NN
./.
But/CC
now/RB
Westinghouse/NNP
is/VBZ
enjoying/VBG
a/DT
resurgence/NN
in/IN
demand/NN
for/IN
both/DT
steam/NN
and/CC
combustion/NN
turbines/NNS
and/CC
may/MD
even/RB
join/VB
the/DT
growing/VBG
legion/NN
of/IN
independent/JJ
electric/JJ
producers/NNS
./.
And/CC
with/IN
its/PRP$
new/JJ
venture/NN
with/IN
Japan/NNP
's/POS
Mitsubishi/NNP
Heavy/NNP
Industries/NNPS
Ltd./NNP
,/,
announced/VBD
last/JJ
week/NN
,/,
it/PRP
is/VBZ
poised/VBN
to/TO
penetrate/VB
growing/VBG
markets/NNS
overseas/RB
./.
For/IN
the/DT
first/JJ
time/NN
since/IN
the/DT
mid-1970s/CD
,/,
Westinghouse/NNP
this/DT
year/NN
has/VBZ
seen/VBN
a/DT
significant/JJ
increase/NN
in/IN
orders/NNS
for/IN
power/NN
plants/NNS
./.
Most/JJS
are/VBP
from/IN
independent/JJ
producers/NNS
instead/RB
of/IN
regulated/JJ
utilities/NNS
,/,
and/CC
Westinghouse/NNP
believes/VBZ
it/PRP
will/MD
ride/VB
a/DT
wave/NN
of/IN
demand/NN
stretching/VBG
over/IN
the/DT
next/JJ
six/CD
years/NNS
./.
Analysts/NNS
agree/VBP
,/,
predicting/VBG
that/IN
the/DT
revived/VBN
market/NN
could/MD
significantly/RB
boost/VB
Westinghouse/NNP
's/POS
bottom/NN
line/NN
in/IN
coming/VBG
years/NNS
./.
``/``
Westinghouse/NNP
's/POS
earnings/NNS
could/MD
be/VB
materially/RB
enhanced/VBN
in/IN
the/DT
mid-1990s/CD
or/CC
sooner/RBR
,/,
''/''
says/VBZ
Russell/NNP
L./NNP
Leavitt/NNP
,/,
of/IN
Salomon/NNP
Brothers/NNPS
Inc/NNP
./.
The/DT
company/NN
expects/VBZ
a/DT
need/NN
for/IN
140,000/CD
megawatts/NNS
of/IN
new/JJ
generation/NN
in/IN
the/DT
U.S./NNP
over/IN
the/DT
next/JJ
decade/NN
./.
Already/RB
this/DT
year/NN
,/,
it/PRP
has/VBZ
received/VBN
orders/NNS
for/IN
four/CD
150-megawatt/JJ
advanced/JJ
combustion/NN
turbines/NNS
from/IN
Florida/NNP
Power/NNP
&/CC
Light/NNP
Co./NNP
and/CC
for/IN
two/CD
300-megawatt/JJ
plants/NNS
from/IN
Intercontinental/NNP
Energy/NNP
Corp./NNP
,/,
among/IN
others/NNS
./.
Westinghouse/NNP
's/POS
own/JJ
role/NN
as/IN
a/DT
supplier/NN
also/RB
is/VBZ
changing/VBG
./.
In/IN
the/DT
past/NN
,/,
the/DT
company/NN
usually/RB
took/VBD
token/JJ
equity/NN
positions/NNS
in/IN
power/NN
plants/NNS
it/PRP
supplied/VBD
as/IN
a/DT
``/``
kicker/NN
''/''
to/TO
close/VB
deals/NNS
./.
But/CC
last/JJ
June/NNP
's/POS
annnouncement/NN
that/IN
Westinghouse/NNP
would/MD
put/VB
up/IN
all/DT
of/IN
the/DT
$/$
70/CD
million/CD
to/TO
build/VB
a/DT
new/JJ
55-megawatt/JJ
plant/NN
could/MD
herald/VB
a/DT
new/JJ
age/NN
./.
Westinghouse/NNP
's/POS
plant/NN
will/MD
provide/VB
electrical/JJ
power/NN
to/TO
the/DT
Southern/NNP
California/NNP
Edison/NNP
Co./NNP
and/CC
backup/JJ
power/NN
and/CC
steam/NN
to/TO
the/DT
U.S./NNP
Borax/NNP
&/CC
Chemical/NNP
Co/NNP
./.
``/``
We/PRP
have/VBP
n't/RB
decided/VBN
on/IN
a/DT
strategy/NN
yet/RB
,/,
but/CC
we/PRP
could/MD
become/VB
an/DT
independent/JJ
producer/NN
depending/VBG
on/IN
whether/IN
we/PRP
're/VBP
the/DT
developer/NN
or/CC
just/RB
the/DT
supplier/NN
,/,
''/''
says/VBZ
Theodore/NNP
Stern/NNP
,/,
executive/JJ
vice/NN
president/NN
of/IN
the/DT
company/NN
's/POS
energy/NN
and/CC
utility/NN
systems/NNS
group/NN
./.
At/IN
the/DT
same/JJ
time/NN
,/,
Westinghouse/NNP
hopes/VBZ
its/PRP$
venture/NN
with/IN
Mitsubishi/NNP
will/MD
help/VB
fend/VB
off/IN
growing/VBG
competition/NN
,/,
particularly/RB
in/IN
the/DT
U.S./NNP
,/,
from/IN
such/JJ
European/JJ
competitors/NNS
as/IN
Asea/NNP
Brown/NNP
Boveri/NNP
AG/NNP
,/,
Siemens/NNP
AG/NNP
,/,
and/CC
British/NNP
General/NNP
Electric/NNP
Co/NNP
./.
Under/IN
the/DT
agreement/NN
,/,
Westinghouse/NNP
will/MD
be/VB
able/JJ
to/TO
purchase/VB
smaller/JJR
combustion/NN
turbines/NNS
from/IN
its/PRP$
Japanese/JJ
partner/NN
,/,
and/CC
package/VB
and/CC
sell/VB
them/PRP
with/IN
its/PRP$
own/JJ
generators/NNS
and/CC
other/JJ
equipment/NN
./.
Westinghouse/NNP
also/RB
jointly/RB
will/MD
bid/VB
on/IN
projects/NNS
with/IN
Misubishi/NNP
,/,
giving/VBG
it/PRP
an/DT
edge/NN
in/IN
developing/VBG
Asian/JJ
markets/NNS
./.
In/IN
addition/NN
,/,
the/DT
two/CD
companies/NNS
will/MD
develop/VB
new/JJ
steam/NN
turbine/NN
technology/NN
,/,
such/JJ
as/IN
the/DT
plants/NNS
ordered/VBN
by/IN
Florida/NNP
Power/NNP
,/,
and/CC
even/RB
utilize/VB
each/DT
other/JJ
's/POS
plants/NNS
at/IN
times/NNS
to/TO
take/VB
advantage/NN
of/IN
currency/NN
fluctuations/NNS
./.
``/``
Even/RB
though/IN
we/PRP
'll/MD
still/RB
compete/VB
against/IN
Mitsubishi/NNP
,/,
we/PRP
can/MD
also/RB
work/VB
jointly/RB
on/IN
some/DT
projects/NNS
,/,
and/CC
we/PRP
'll/MD
gain/VB
a/DT
lot/NN
of/IN
sourcing/VBG
flexibility/NN
,/,
''/''
Mr./NNP
Stern/NNP
contends/VBZ
./.
The/DT
Westinghouse-Mitsubishi/NNP
venture/NN
was/VBD
designed/VBN
as/IN
a/DT
non-equity/JJ
transaction/NN
,/,
circumventing/VBG
any/DT
possible/JJ
antitrust/JJ
concerns/NNS
./.
Westinghouse/NNP
carefully/RB
crafted/VBD
the/DT
agreement/NN
because/IN
the/DT
Justice/NNP
Department/NNP
earlier/RBR
this/DT
year/NN
successfully/RB
challenged/VBD
a/DT
proposed/VBN
steam/NN
turbine/NN
joint/NN
venture/NN
with/IN
Asea/NNP
Brown/NNP
Boveri/NNP
./.
It/PRP
is/VBZ
expected/VBN
that/IN
the/DT
current/JJ
surge/NN
in/IN
demand/NN
for/IN
new/JJ
power/NN
will/MD
be/VB
filled/VBN
primarily/RB
by/IN
independent/JJ
producers/NNS
which/WDT
,/,
unlike/IN
utilities/NNS
,/,
are/VBP
n't/RB
regulated/VBN
and/CC
therefore/RB
do/VBP
n't/RB
need/VB
government/NN
approval/NN
to/TO
construct/VB
new/JJ
plants/NNS
./.
Westinghouse/NNP
expects/VBZ
about/IN
half/NN
of/IN
its/PRP$
new/JJ
orders/NNS
for/IN
turbines/NNS
to/TO
come/VB
from/IN
independent/JJ
producers/NNS
for/IN
at/IN
least/JJS
the/DT
next/JJ
six/CD
years/NNS
./.
Despite/IN
shutdowns/NNS
of/IN
the/DT
company/NN
's/POS
Lester/NNP
and/CC
East/NNP
Pittsburgh/NNP
plants/NNS
,/,
the/DT
company/NN
believes/VBZ
it/PRP
has/VBZ
sufficient/JJ
capacity/NN
to/TO
meet/VB
near-term/JJ
demand/NN
with/IN
its/PRP$
much/JJ
smaller/JJR
and/CC
more/RBR
efficient/JJ
manufacturing/VBG
facilities/NNS
in/IN
North/NNP
Carolina/NNP
./.
Still/RB
,/,
Westinghouse/NNP
acknowledges/VBZ
that/IN
demand/NN
from/IN
independent/JJ
producers/NNS
could/MD
evaporate/VB
if/IN
prices/NNS
for/IN
fuel/NN
such/JJ
as/IN
natural/JJ
gas/NN
or/CC
oil/NN
rise/VBP
sharply/RB
or/CC
if/IN
utilities/NNS
,/,
which/WDT
have/VBP
been/VBN
pressured/VBN
by/IN
regulators/NNS
to/TO
keep/VB
down/IN
rates/NNS
,/,
are/VBP
suddenly/RB
freed/VBN
to/TO
add/VB
significant/JJ
generating/VBG
capacity/NN
./.
Even/RB
if/IN
that/DT
scenario/NN
occurs/VBZ
,/,
Westinghouse/NNP
figures/VBZ
it/PRP
is/VBZ
prepared/VBN
./.
The/DT
company/NN
already/RB
is/VBZ
gearing/VBG
up/IN
for/IN
a/DT
renaissance/NN
of/IN
nuclear/JJ
power/NN
even/RB
though/IN
it/PRP
has/VBZ
n't/RB
received/VBN
an/DT
order/NN
for/IN
a/DT
domestic/JJ
nuclear/JJ
plant/NN
in/IN
a/DT
decade/NN
./.
John/NNP
C./NNP
Marous/NNP
,/,
chairman/NN
and/CC
chief/NN
executive/NN
officer/NN
,/,
says/VBZ
he/PRP
expects/VBZ
a/DT
commercial/JJ
order/NN
by/IN
1995/CD
for/IN
the/DT
company/NN
's/POS
AP600/NN
nuclear/JJ
power/NN
plant/NN
,/,
which/WDT
is/VBZ
under/IN
development/NN
./.
``/``
Once/RB
we/PRP
see/VBP
an/DT
order/NN
,/,
we/PRP
expect/VBP
it/PRP
'll/MD
be/VB
on/IN
line/NN
by/IN
2000/CD
./.
''/''
Among/IN
the/DT
things/NNS
I/PRP
learned/VBD
covering/VBG
the/DT
World/NNP
Series/NNP
these/DT
past/IN
few/JJ
weeks/NNS
is/VBZ
that/IN
the/DT
Richter/NNP
scale/NN
,/,
which/WDT
measures/VBZ
earthquakes/NNS
,/,
is/VBZ
n't/RB
like/IN
the/DT
one/CD
in/IN
your/PRP$
bathroom/NN
./.
A/DT
quake/NN
that/WDT
measures/VBZ
two/CD
on/IN
the/DT
Richter/NNP
is/VBZ
n't/RB
twice/RB
as/RB
severe/JJ
as/IN
a/DT
``/``
one/CD
''/''
--/:
it/PRP
's/VBZ
10/CD
times/NNS
worse/JJR
./.
A/DT
``/``
three/CD
''/''
is/VBZ
10/CD
times/NNS
10/CD
again/RB
,/,
and/CC
so/RB
on/IN
./.
That/WDT
put/VBD
the/DT
``/``
seven/CD
''/''
of/IN
Oct./NNP
17/CD
in/IN
perspective/NN
for/IN
me/PRP
./.
Think/VBP
I/PRP
'll/MD
buy/VB
one/CD
of/IN
those/DT
``/``
I/PRP
Survived/VBD
''/''
T-shirts/NNS
after/IN
all/DT
./.
By/IN
Richterian/JJ
standards/NNS
,/,
the/DT
show/NN
that/IN
the/DT
Oakland/NNP
Athletics/NNP
put/VBD
on/RP
Friday/NNP
and/CC
Saturday/NNP
nights/NNS
,/,
in/IN
putting/VBG
a/DT
mercifully/RB
swift/JJ
end/NN
to/TO
the/DT
game/NN
's/POS
Longest/NNP
Short/NNP
Series/NNP
,/,
rated/VBD
somewhere/RB
between/IN
a/DT
10/CD
and/CC
an/DT
11/CD
./.
The/DT
boys/NNS
with/IN
the/DT
white/JJ
elephants/NNS
on/IN
their/PRP$
sleeves/NNS
might/MD
not/RB
have/VB
made/VBN
the/DT
earth/NN
move/VB
much/RB
,/,
but/CC
they/PRP
certainly/RB
did/VBD
some/DT
impressive/JJ
things/NNS
with/IN
baseballs/NNS
./.
The/DT
Pale/NNP
Pachyderms/NNPS
propelled/VBD
six/CD
of/IN
'em/PRP
out/IN
of/IN
the/DT
unfriendly/JJ
confines/NNS
of/IN
Candlestick/NNP
Park/NNP
during/IN
the/DT
two/CD
games/NNS
en/IN
route/NN
to/TO
13-7/CD
and/CC
9-6/CD
wins/NNS
over/IN
the/DT
San/NNP
Francisco/NNP
Giants/NNPS
./.
Combined/VBN
with/IN
their/PRP$
two/CD
pre-quake/JJ
victories/NNS
,/,
way/RB
back/RB
on/IN
Oct./NNP
14/CD
and/CC
15/CD
the/DT
scores/NNS
were/VBD
5-0/CD
and/CC
5-1/CD
,/,
remember/VB
?/.
)/)
,/,
that/WDT
gave/VBD
them/PRP
a/DT
sweep/NN
of/IN
the/DT
best-of-seven/JJ
series/NN
./.
The/DT
joke/NN
here/RB
is/VBZ
that/IN
the/DT
Giants/NNPS
lost/VBD
by/IN
de/IN
fault/NN
./.
That/DT
's/VBZ
geologically/RB
correct/JJ
,/,
but/CC
a/DT
trifle/RB
unfair/JJ
otherwise/RB
./.
They/PRP
showed/VBD
up/IN
,/,
but/CC
did/VBD
n't/RB
--/:
or/CC
could/MD
n't/RB
--/:
challenge/VB
./.
They/PRP
led/VBD
for/IN
nary/DT
an/DT
inning/NN
in/IN
the/DT
four/CD
games/NNS
,/,
and/CC
managed/VBD
to/TO
stir/VB
their/PRP$
fans/NNS
only/RB
once/RB
./.
That/WDT
came/VBD
in/IN
the/DT
seventh/JJ
inning/NN
of/IN
Game/NNP
Four/NNP
when/WRB
,/,
trailing/VBG
8-2/CD
,/,
they/PRP
scored/VBD
four/CD
times/NNS
and/CC
brought/VBD
their/PRP$
big/JJ
heat/NN
--/:
Will/NNP
Clark/NNP
and/CC
Kevin/NNP
Mitchell/NNP
--/:
to/TO
the/DT
plate/NN
with/IN
one/CD
out/NN
and/CC
a/DT
runner/NN
on/IN
./.
But/CC
Clark/NNP
flied/VBD
out/IN
to/TO
short/VB
right/JJ
field/NN
and/CC
Mitchell/NNP
's/POS
drive/NN
to/TO
left/JJ
was/VBD
caught/VBN
on/IN
the/DT
warning/VBG
track/NN
by/IN
Rickey/NNP
Henderson/NNP
as/IN
62,000/CD
sets/NNS
of/IN
lungs/NNS
exhaled/VBD
as/IN
one/CD
./.
``/``
I/PRP
went/VBD
out/IN
to/TO
Todd/NNP
Burns/NNP
,/,
the/DT
A/NNP
's/POS
reliever/NN
him/PRP
that/IN
we/PRP
were/VBD
n't/RB
gon/VBG
na/TO
let/VB
this/DT
guy/NN
beat/VB
us/PRP
,/,
''/''
said/VBD
Oakland/NNP
catcher/NN
Terry/NNP
Steinbach/NNP
of/IN
the/DT
decisive/JJ
confrontation/NN
with/IN
Mitchell/NNP
,/,
the/DT
National/NNP
League/NNP
's/POS
reigning/VBG
home-run/JJ
king/NN
./.
``/``
I/PRP
told/VBD
him/PRP
to/TO
make/VB
Mitchell/NNP
reach/VB
for/IN
everything/NN
,/,
and/CC
that/DT
's/VBZ
what/WP
we/PRP
did/VBD
./.
The/DT
ball/NN
he/PRP
hit/VBD
was/VBD
n't/RB
a/DT
strike/NN
./.
If/IN
it/PRP
had/VBD
been/VBN
,/,
he/PRP
mighta/MD|VB
hit/VB
it/PRP
out/IN
./.
''/''
But/CC
if/IN
the/DT
A/NNP
's/POS
had/VBD
n't/RB
won/VBN
in/IN
four/CD
,/,
they/PRP
would/MD
have/VB
prevailed/VBN
in/IN
five/CD
,/,
or/CC
six/CD
,/,
or/CC
seven/CD
./.
The/DT
best/JJS
team/NN
won/VBD
this/DT
Series/NN
,/,
which/WDT
is/VBZ
more/RBR
unusual/JJ
than/IN
it/PRP
may/MD
sound/VB
./.
Baseball/NN
ai/VBP
n't/RB
football/NN
,/,
where/WRB
the/DT
good/JJ
teams/NNS
beat/VBP
up/IN
on/IN
the/DT
bad/JJ
ones/NNS
./.
The/DT
best/JJS
baseball/NN
teams/NNS
win/VBP
six/CD
of/IN
10/CD
games/NNS
and/CC
the/DT
worst/JJS
win/VBP
four/CD
of/IN
10/CD
./.
Without/IN
becoming/VBG
overly/RB
contentious/JJ
,/,
allow/VB
me/PRP
to/TO
suggest/VB
that/IN
several/JJ
recent/JJ
champions/NNS
of/IN
the/DT
world/NN
according/VBG
to/TO
us/PRP
U.S./NNP
No./NN
1/CD
in/IN
many/JJ
polls/NNS
./.
That/DT
list/NN
includes/VBZ
last/JJ
season/NN
's/POS
champs/NNS
,/,
the/DT
Los/NNP
Angeles/NNP
Dodgers/NNPS
,/,
who/WP
rode/VBD
a/DT
miracle/NN
home/NN
run/NN
by/IN
Kirk/NNP
Gibson/NNP
and/CC
two/CD
faultless/JJ
pitching/NN
performances/NNS
by/IN
Orel/NNP
Hershiser/NNP
to/TO
a/DT
five-game/JJ
triumph/NN
over/IN
a/DT
bewitched/VBN
,/,
bothered/VBN
Oakland/NNP
crew/NN
./.
These/DT
A/NNP
's/POS
,/,
however/RB
,/,
got/VBD
few/JJ
grades/NNS
as/RB
low/JJ
as/IN
B/NN
on/IN
their/PRP$
1989/CD
report/NN
card/NN
./.
They/PRP
led/VBD
the/DT
Major/NNP
Leagues/NNPS
in/IN
regular-season/JJ
wins/NNS
with/IN
99/CD
and/CC
flattened/VBD
the/DT
Toronto/NNP
Blue/NNP
Jays/NNPS
four/CD
games/NNS
to/TO
one/CD
for/IN
the/DT
American/NNP
League/NNP
pennant/NN
before/IN
stomping/VBG
their/PRP$
cross-bay/JJ
rivals/NNS
./.
The/DT
pithiest/JJS
testimony/NN
to/TO
their/PRP$
domination/NN
of/IN
the/DT
just-concluded/JJ
tournament/NN
came/VBD
from/IN
Giants/NNPS
'/POS
manager/NN
Roger/NNP
Craig/NNP
after/IN
his/PRP$
team/NN
had/VBD
fallen/VBN
in/IN
Game/NNP
Three/NNP
to/TO
a/DT
five-home-run/JJ
barrage/NN
that/WDT
tied/VBD
a/DT
61-year-old/JJ
Series/NN
record/NN
./.
Asked/VBN
what/WP
he/PRP
would/MD
do/VB
differently/RB
on/IN
the/DT
morrow/NN
,/,
Craig/NNP
allowed/VBD
that/IN
he/PRP
might/MD
play/VB
his/PRP$
outfielders/NNS
deeper/RBR
,/,
``/``
maybe/RB
on/IN
the/DT
other/JJ
side/NN
of/IN
the/DT
fence/NN
./.
''/''
The/DT
A/NNP
's/POS
offensive/JJ
showing/NN
in/IN
the/DT
Series/NNP
got/VBD
an/DT
A/NN
,/,
as/IN
in/IN
awesome/JJ
./.
Their/PRP$
85/CD
total/NN
bases/NNS
broke/VBD
a/DT
record/NN
for/IN
a/DT
four-game/JJ
set/NN
,/,
and/CC
their/PRP$
nine/CD
home/NN
runs/NNS
tied/VBD
one/CD
./.
Eight/CD
Oakland/NNP
players/NNS
hit/VBD
homers/NNS
,/,
with/IN
centerfielder/NN
Dave/NNP
Henderson/NNP
getting/VBG
two/CD
,/,
both/DT
on/IN
Friday/NNP
./.
Rickey/NNP
Henderson/NNP
,/,
the/DT
do-everything/JJ
leadoff/NN
man/NN
,/,
had/VBD
nine/CD
hits/NNS
and/CC
set/VBD
or/CC
tied/VBD
four-game/JJ
Series/NNP
marks/NNS
for/IN
triples/NNS
2/CD
bases/NNS
3/CD
The/DT
sole/NN
A/NNP
not/RB
to/TO
homer/VB
was/VBD
cleanup/NN
hitter/NN
Mark/NNP
McGwire/NNP
,/,
their/PRP$
regular-season/JJ
leader/NN
with/IN
33/CD
,/,
and/CC
he/PRP
contributed/VBD
five/CD
hits/NNS
plus/CC
a/DT
diving/JJ
fielding/NN
play/NN
on/IN
a/DT
ground/NN
ball/NN
in/IN
Game/NNP
Three/NNP
that/WDT
stopped/VBD
a/DT
Giant/NNP
rally/NN
while/IN
the/DT
issue/NN
still/RB
was/VBD
in/IN
doubt/NN
./.
``/``
Think/VBP
I/PRP
'll/MD
redo/VB
my/PRP$
image/NN
--/:
get/VB
this/DT
changed/VBN
to/TO
a/DT
glove/NN
,/,
''/''
quipped/VBD
the/DT
big/JJ
first/JJ
baseman/NN
Saturday/NNP
night/NN
,/,
fingering/VBG
the/DT
gold/JJ
bat/NN
he/PRP
wears/VBZ
on/IN
a/DT
neck/NN
chain/NN
./.
Even/RB
with/IN
that/DT
power/NN
show/NN
,/,
though/RB
,/,
the/DT
Oakland/NNP
Series/NNP
'/POS
star/NN
,/,
certified/VBN
by/IN
the/DT
Most/NNP
Valuable/NNP
Player/NNP
award/NN
,/,
was/VBD
a/DT
pitcher/NN
,/,
Dave/NNP
Stewart/NNP
./.
He/PRP
shut/VBD
out/IN
the/DT
Giants/NNPS
on/IN
five/CD
hits/NNS
in/IN
Game/NNP
One/NNP
,/,
and/CC
allowed/VBD
three/CD
runs/NNS
on/IN
five/CD
hits/NNS
in/IN
seven/CD
innings/NNS
Friday/NNP
after/IN
the/DT
12-day/JJ
break/NN
caused/VBN
by/IN
the/DT
earthquake/NN
./.
Stewart/NNP
's/POS
honor/NN
was/VBD
a/DT
nice/JJ
note/NN
on/IN
a/DT
couple/NN
of/IN
grounds/NNS
./.
One/CD
was/VBD
that/IN
,/,
despite/IN
his/PRP$
62/CD
regular-season/JJ
wins/NNS
over/IN
the/DT
past/JJ
three/CD
seasons/NNS
in/IN
the/DT
Land/NNP
Beyond/NNP
the/DT
Late/NNP
News/NNP
,/,
he/PRP
has/VBZ
been/VBN
overshadowed/VBN
by/IN
his/PRP$
more-muscular/JJ
mates/NNS
and/CC
missed/VBN
out/IN
on/IN
prizes/NNS
that/WDT
might/MD
have/VB
been/VBN
his/PRP$
due/NN
./.
The/DT
other/JJ
is/VBZ
that/IN
he/PRP
's/VBZ
an/DT
Oakland/NNP
native/NN
,/,
and/CC
lifted/VBD
residents/NNS
'/POS
spirits/NNS
by/IN
his/PRP$
visits/NNS
to/TO
quake-hit/JJ
areas/NNS
last/JJ
week/NN
./.
Afterward/RB
,/,
as/IN
the/DT
A/NNP
's/POS

toasted/VBD
their/PRP$
victory/NN
with/IN
beer/NN
they/PRP
dispensed/VBD
with/IN
traditional/JJ
champagne/NN
showers/NNS
in/IN
deference/NN
to/TO
the/DT
quake/NN
victims/NNS
Stewart/NNP
said/VBD
he/PRP
thought/VBD
his/PRP$
championship-team/JJ
ring/NN
would/MD
outshine/VB
his/PRP$
individual/JJ
trophy/NN
./.
``/``
Give/VB
me/PRP
four/CD
or/CC
five/CD
more/JJR
Series/NN
with/IN
these/DT
guys/NNS
,/,
and/CC
I/PRP
do/VBP
n't/RB
care/VB
if/IN
I/PRP
ever/RB
win/VBP
a/DT
Cy/NNP
Young/NNP
,/,
''/''
he/PRP
said/VBD
,/,
in/IN
reference/NN
to/TO
baseball/NN
's/POS
best-pitcher/JJ
award/NN
./.
Indeed/RB
,/,
the/DT
possibility/NN
of/IN
an/DT
A/NNP
's/POS
ring/NN
cycle/NN
,/,
a\/k\/a/IN
a/DT
dynasty/NN
,/,
was/VBD
a/DT
major/JJ
topic/NN
of/IN
post-game/JJ
discussion/NN
Saturday/NNP
,/,
so/RB
much/RB
so/RB
that/IN
Sandy/NNP
Alderson/NNP
,/,
the/DT
team/NN
's/POS
general/JJ
manager/NN
,/,
felt/VBD
obliged/VBN
to/TO
dampen/VB
it/PRP
./.
``/``
People/NNS
change/VBP
,/,
teams/NNS
change/VBP
,/,
''/''
he/PRP
cautioned/VBD
./.
``/``
It/PRP
's/VBZ
easier/JJR
to/TO
get/VB
worse/JJR
than/IN
better/JJR
in/IN
this/DT
game/NN
./.
''/''
He/PRP
might/MD
have/VB
added/VBN
an/DT
interesting/JJ
historical/JJ
fact/NN
:/:
The/DT
last/JJ
Series/NN
sweep/NN
,/,
by/IN
the/DT
Cincinnati/NNP
Reds/NNP
,/,
came/VBD
in/IN
1976/CD
,/,
which/WDT
also/RB
was/VBD
the/DT
first/JJ
year/NN
of/IN
baseball/NN
player/NN
free/JJ
agency/NN
./.
It/PRP
was/VBD
widely/RB
predicted/VBN
that/IN
free/JJ
agency/NN
would/MD
allow/VB
the/DT
glamorous/JJ
,/,
``/``
big/JJ
market/NN
''/''
teams/NNS
to/TO
monopolize/VB
the/DT
best/JJS
talent/NN
,/,
but/CC
quite/RB
the/DT
opposite/NN
has/VBZ
occurred/VBN
:/:
Twelve/CD
different/JJ
clubs/NNS
have/VBP
won/VBN
titles/NNS
in/IN
the/DT
14/CD
seasons/NNS
since/IN
its/PRP$
advent/NN
./.
The/DT
number/NN
includes/VBZ
such/JJ
unstylish/JJ
burgs/NNS
as/IN
,/,
well/UH
,/,
Oakland/NNP
./.
The/DT
rationale/NN
for/IN
responding/VBG
to/TO
your/PRP$
customers/NNS
'/POS
needs/NNS
faster/RBR
than/IN
the/DT
competition/NN
can/MD
is/VBZ
clear/JJ
:/:
Your/PRP$
company/NN
will/MD
benefit/VB
in/IN
terms/NNS
of/IN
market/NN
share/NN
,/,
customer/NN
satisfaction/NN
and/CC
profitability/NN
./.
In/IN
fact/NN
,/,
managers/NNS
today/NN
are/VBP
probably/RB
more/RBR
aware/JJ
of/IN
speed/NN
as/IN
a/DT
competitive/JJ
variable/NN
than/IN
ever/RB
before/IN
./.
However/RB
,/,
for/IN
many/JJ
,/,
managing/VBG
speed/NN
does/VBZ
not/RB
come/VBN
naturally/RB
./.
``/``
Most/JJS
of/IN
us/PRP
grew/VBD
up/IN
believing/VBG
in/IN
the/DT
axioms/NNS
`/``
Haste/NN
makes/VBZ
waste/NN
'/''
and/CC
`/``
Do/VBP
n't/RB
cut/VB
corners/NNS
,/,
'/''
ideas/NNS
that/WDT
seem/VBP
to/TO
run/VB
counter/RB
to/TO
the/DT
concept/NN
of/IN
managing/VBG
speed/NN
,/,
''/''
says/VBZ
Dean/NNP
Cassell/NNP
,/,
vice/NN
president/NN
for/IN
product/NN
integrity/NN
at/IN
Grumman/NNP
Corp/NNP
./.
``/``
But/CC
in/IN
the/DT
real/JJ
world/NN
,/,
you/PRP
learn/VBP
that/IN
speed/NN
and/CC
quality/NN
are/VBP
not/RB
a/DT
trade-off/NN
./.
Speed/NN
is/VBZ
a/DT
component/NN
of/IN
quality/NN
--/:
one/CD
of/IN
the/DT
things/NNS
we/PRP
must/MD
deliver/VB
to/TO
satisfy/VB
customers/NNS
./.
''/''
Companies/NNS
that/WDT
actually/RB
market/VBP
speed/NN
as/IN
part/NN
of/IN
their/PRP$
service/NN
train/VBP
their/PRP$
managers/NNS
to/TO
lead/VB
and/CC
participate/VB
in/IN
teams/NNS
that/WDT
increase/VBP
speed/NN
and/CC
improve/VBP
quality/NN
in/IN
everyday/JJ
operations/NNS
./.
Managers/NNS
learn/VBP
to/TO
spot/VB
opportunities/NNS
to/TO
increase/VB
customer/NN
satisfaction/NN
through/IN
speed/NN
,/,
and/CC
shift/VB
some/DT
responsibility/NN
for/IN
analyzing/VBG
,/,
improving/VBG
and/CC
streamlining/VBG
work/NN
processes/NNS
from/IN
themselves/PRP
to/TO
teams/NNS
of/IN
employees/NNS
./.
One/CD
team/NN
at/IN
the/DT
Federal/NNP
Express/NNP
Ground/NNP
Operations/NNPS
station/NN
in/IN
Natick/NNP
,/,
Mass./NNP
,/,
focused/VBD
on/IN
a/DT
particularly/RB
time-sensitive/JJ
operation/NN
:/:
the/DT
morning/NN
package/NN
sort/NN
./.
Every/DT
morning/NN
,/,
tractor-trailer/NN
trucks/NNS
arrive/VBP
at/IN
the/DT
Natick/NNP
Ground/NNP
Station/NNP
from/IN
Boston/NNP
's/POS
Logan/NNP
Airport/NNP
,/,
carrying/VBG
the/DT
day/NN
's/POS
package/NN
load/NN
./.
In/IN
peak/NN
periods/NNS
that/DT
load/NN
may/MD
include/VB
4,000/CD
pieces/NNS
./.
The/DT
packages/NNS
must/MD
be/VB
sorted/VBN
quickly/RB
and/CC
distributed/VBN
to/TO
smaller/JJR
vans/NNS
for/IN
delivery/NN
,/,
so/IN
couriers/NNS
can/MD
be/VB
on/IN
the/DT
road/NN
by/IN
8:35/CD
./.
No/DT
customer/NN
is/VBZ
present/JJ
at/IN
the/DT
morning/NN
package/NN
sort/NN
,/,
but/CC
the/DT
process/NN
is/VBZ
nevertheless/RB
critical/JJ
to/TO
customer/NN
satisfaction/NN
./.
``/``
We/PRP
're/VBP
committed/VBN
to/TO
deliver/VB
the/DT
customer/NN
's/POS
package/NN
by/IN
a/DT
stated/VBN
time/NN
,/,
usually/RB
10:30/CD
,/,
''/''
notes/VBZ
Glenn/NNP
Mortimer/NNP
,/,
a/DT
Federal/NNP
Express/NNP
courier/NN
who/WP
led/VBD
the/DT
Natick/NNP
team/NN
./.
``/``
The/DT
sooner/RB
our/PRP$
vans/NNS
hit/VBP
the/DT
road/NN
each/DT
morning/NN
,/,
the/DT
easier/JJR
it/PRP
is/VBZ
for/IN
us/PRP
to/TO
fulfill/VB
that/DT
obligation/NN
./.
''/''
Following/VBG
a/DT
problem-solving/JJ
formula/NN
used/VBN
by/IN
teams/NNS
throughout/IN
Federal/NNP
Express/NNP
,/,
members/NNS
of/IN
the/DT
Natick/NNP
team/NN
monitored/VBD
their/PRP$
morning/NN
routine/NN
,/,
carefully/RB
noting/VBG
where/WRB
and/CC
when/WRB
the/DT
work/NN
group/NN
's/POS
resources/NNS
were/VBD
used/VBN
effectively/RB
and/CC
where/WRB
they/PRP
were/VBD
idle/JJ
,/,
waiting/VBG
for/IN
others/NNS
upstream/RB
in/IN
the/DT
process/NN
to/TO
send/VB
packages/NNS
their/PRP$
way/NN
./.
``/``
We/PRP
suspected/VBD
there/EX
was/VBD
downtime/NN
built/VBN
into/IN
our/PRP$
process/NN
./.
But/CC
we/PRP
did/VBD
n't/RB
know/VB
just/RB
where/WRB
it/PRP
was/VBD
until/IN
we/PRP
completed/VBD
our/PRP$
data/NNS
gathering/NN
,/,
''/''
Mr./NNP
Mortimer/NNP
says/VBZ
./.
``/``
We/PRP
used/VBD
the/DT
data/NNS
to/TO
redesign/VB
our/PRP$
sorting/VBG
system/NN
and/CC
put/VB
our/PRP$
resources/NNS
where/WRB
they/PRP
could/MD
do/VB
the/DT
most/RBS
good/JJ
./.
''/''
The/DT
team/NN
even/RB
created/VBD
a/DT
points/NNS
system/NN
to/TO
identify/VB
those/DT
couriers/NNS
and/CC
subgroups/NNS
that/WDT
were/VBD
doing/VBG
the/DT
most/JJS
to/TO
reduce/VB
package-sort/JJ
cycle/NN
time/NN
./.
Winners/NNS
of/IN
the/DT
friendly/JJ
competition/NN
earn/VBP
a/DT
steak/NN
dinner/NN
out/IN
with/IN
their/PRP$
spouses/NNS
./.
``/``
Monitoring/NN
shows/VBZ
that/IN
the/DT
Natick/NNP
team/NN
's/POS
new/JJ
system/NN
really/RB
does/VBZ
reduce/VB
cycle/NN
time/NN
for/IN
the/DT
morning/NN
package/NN
sort/NN
,/,
''/''
reports/VBZ
James/NNP
Barksdale/NNP
,/,
chief/NN
operating/VBG
officer/NN
at/IN
Federal/NNP
Express/NNP
./.
``/``
The/DT
vans/NNS
leave/VBP
at/IN
least/JJS
15/CD
minutes/NNS
earlier/RBR
,/,
on/IN
average/NN
,/,
than/IN
they/PRP
used/VBD
to/TO
./.
And/CC
service/NN
levels/NNS
have/VBP
increased/VBN
to/TO
the/DT
point/NN
where/WRB
they/PRP
're/VBP
consistently/RB
above/IN
99/CD
%/NN
./.
''/''
A/DT
cross-functional/JJ
team/NN
at/IN
Union/NNP
Carbide/NNP
's/POS
Tonawanda/NNP
,/,
N.Y./NNP
,/,
facility/NN
,/,
which/WDT
produces/VBZ
air-separation/NN
plants/NNS
,/,
followed/VBD
a/DT
similar/JJ
path/NN
to/TO
reduce/VB
manufacturing/VBG
cycle/NN
time/NN
./.
``/``
The/DT
team/NN
included/VBD
craftsmen/NNS
from/IN
the/DT
shop/NN
floor/NN
as/RB
well/RB
as/IN
engineering/NN
,/,
scheduling/NN
and/CC
purchasing/NN
personnel/NNS
,/,
''/''
reports/VBZ
Alan/NNP
Westendorf/NNP
,/,
director/NN
of/IN
quality/NN
./.
``/``
First/JJ
,/,
they/PRP
produced/VBD
a/DT
flowchart/NN
detailing/VBG
the/DT
process/NN
by/IN
which/WDT
an/DT
air-separation/NN
plant/NN
actually/RB
gets/VBZ
built/VBN
./.
Then/RB
they/PRP
identified/VBD
snags/NNS
in/IN
the/DT
process/NN
./.
''/''
The/DT
Tonawanda/NNP
team/NN
determined/VBD
that/IN
holdups/NNS
for/IN
inspections/NNS
were/VBD
the/DT
main/JJ
problem/NN
and/CC
identified/VBD
which/WDT
kinds/NNS
of/IN
delays/NNS
involved/VBN
critical/JJ
inspections/NNS
and/CC
which/WDT
were/VBD
less/RBR
critical/JJ
or/CC
could/MD
be/VB
handled/VBN
by/IN
workers/NNS
already/RB
on/IN
the/DT
line/NN
./.
The/DT
team/NN
then/RB
proposed/VBD
modifications/NNS
in/IN
their/PRP$
work/NN
process/NN
to/TO
management/NN
./.
``/``
The/DT
streamlined/JJ
manufacturing/NN
process/NN
benefits/VBZ
our/PRP$
customers/NNS
in/IN
at/IN
least/JJS
two/CD
ways/NNS
,/,
''/''
Mr./NNP
Westendorf/NNP
concludes/VBZ
./.
``/``
First/JJ
,/,
we/PRP
have/VBP
better/JJR
quality/NN
assurance/NN
than/IN
ever/RB
,/,
because/IN
the/DT
people/NNS
building/VBG
the/DT
product/NN
have/VBP
taken/VBN
on/IN
more/JJR
responsibility/NN
for/IN
the/DT
quality/NN
of/IN
their/PRP$
own/JJ
work/NN
./.
Second/JJ
,/,
we/PRP
trimmed/VBD
more/JJR
than/IN
a/DT
month/NN
off/IN
the/DT
time/NN
required/VBN
to/TO
deliver/VB
a/DT
finished/VBN
product/NN
./.
''/''
At/IN
Grumman/NNP
's/POS
Aircraft/NNP
Systems/NNPS
Division/NNP
,/,
a/DT
cross-functional/JJ
team/NN
reduced/VBD
the/DT
cycle/NN
time/NN
required/VBN
to/TO
produce/VB
a/DT
new/JJ
business/NN
proposal/NN
for/IN
an/DT
important/JJ
government/NN
contract/NN
./.
The/DT
team/NN
was/VBD
composed/VBN
of/IN
representatives/NNS
from/IN
engineering/NN
,/,
manufacturing/NN
,/,
corporate/JJ
estimating/NN
,/,
flight/NN
test/NN
,/,
material/NN
,/,
quality/NN
control/NN
,/,
and/CC
other/JJ
departments/NNS
./.
``/``
We/PRP
needed/VBD
contributions/NNS
from/IN
all/PDT
these/DT
departments/NNS
to/TO
generate/VB
the/DT
proposal/NN
,/,
''/''
says/VBZ
Carl/NNP
Anton/NNP
,/,
configuration-data/JJ
manager/NN
for/IN
Grumman/NNP
's/POS
A-6/NN
combat/NN
aircraft/NN
program/NN
./.
``/``
But/CC
instead/RB
of/IN
gathering/VBG
their/PRP$
input/NN
piecemeal/RB
,/,
we/PRP
formed/VBD
the/DT
team/NN
,/,
which/WDT
reached/VBD
consensus/NN
on/IN
the/DT
proposal/NN
objectives/NNS
and/CC
produced/VBD
a/DT
statement/NN
of/IN
work/NN
to/TO
guide/VB
all/PDT
the/DT
functions/NNS
that/WDT
were/VBD
involved/VBN
./.
''/''
Armed/VBN
with/IN
this/DT
shared/VBN
understanding/NN
and/CC
requisite/JJ
background/NN
information/NN
,/,
each/DT
department/NN
developed/VBD
its/PRP$
specialized/VBN
contribution/NN
to/TO
the/DT
proposal/NN
,/,
submitting/VBG
data/NNS
and/CC
cost/NN
estimates/NNS
on/IN
a/DT
closely/RB
managed/VBN
schedule/NN
./.
``/``
We/PRP
cleared/VBD
up/RP
questions/NNS
and/CC
inconsistencies/NNS
very/RB
quickly/RB
,/,
because/IN
the/DT
people/NNS
who/WP
had/VBD
the/DT
skills/NNS
and/CC
perspective/NN
required/VBN
to/TO
resolve/VB
them/PRP
were/VBD
part/NN
of/IN
the/DT
task/NN
team/NN
,/,
''/''
Mr./NNP
Anton/NNP
explains/VBZ
./.
The/DT
team/NN
trimmed/VBD
more/JJR
than/IN
two/CD
months/NNS
from/IN
the/DT
cycle/NN
time/NN
previously/RB
required/VBN
to/TO
develop/VB
comparable/JJ
proposals/NNS
./.
``/``
The/DT
team/NN
eliminated/VBD
the/DT
crisis/NN
mentality/NN
that/IN
proposal/NN
deadlines/NNS
can/MD
generate/VB
./.
The/DT
result/NN
was/VBD
a/DT
more/RBR
thoughtful/JJ
,/,
complete/JJ
and/CC
competitive/JJ
proposal/NN
,/,
''/''
Mr./NNP
Anton/NNP
concludes/VBZ
./.
The/DT
successes/NNS
achieved/VBN
at/IN
Federal/NNP
Express/NNP
,/,
Union/NNP
Carbide/NNP
and/CC
Grumman/NNP
suggest/VBP
that/IN
managing/VBG
speed/NN
may/MD
be/VB
an/DT
underutilized/VBN
source/NN
of/IN
competitive/JJ
advantage/NN
./.
Managers/NNS
in/IN
all/DT
three/CD
companies/NNS
recognize/VBP
speed/NN
as/IN
a/DT
component/NN
of/IN
quality/NN
and/CC
a/DT
key/NN
to/TO
customer/NN
satisfaction/NN
./.
They/PRP
effectively/RB
lead/VBP
team/NN
efforts/NNS
to/TO
reduce/VB
cycle/NN
time/NN
./.
And/CC
they/PRP
prepare/VBP
all/PDT
their/PRP$
people/NNS
to/TO
increase/VB
the/DT
speed/NN
and/CC
improve/VB
the/DT
quality/NN
of/IN
their/PRP$
own/JJ
work/NN
./.
Mr./NNP
Labovitz/NNP
is/VBZ
president/NN
of/IN
ODI/NNP
,/,
a/DT
consulting/VBG
firm/NN
in/IN
Burlington/NNP
,/,
Mass/NNP
./.
Home/NN
taping/NN
of/IN
pre-recorded/JJ
music/NN
cuts/VBZ
into/IN
record/NN
industry/NN
revenues/NNS
,/,
but/CC
banning/VBG
home/NN
taping/NN
would/MD
hurt/VB
consumers/NNS
even/RB
more/RBR
./.
That/DT
's/VBZ
the/DT
conclusion/NN
of/IN
an/DT
independent/JJ
report/NN
prepared/VBN
by/IN
the/DT
Office/NNP
of/IN
Technology/NNP
Assessment/NNP
at/IN
the/DT
request/NN
of/IN
the/DT
House/NNP
and/CC
Senate/NNP
judiciary/NN
committees/NNS
./.
The/DT
report/NN
is/VBZ
to/TO
be/VB
released/VBN
today/NN
./.
The/DT
report/NN
says/VBZ
the/DT
availability/NN
of/IN
such/JJ
advanced/VBN
analog/NN
recording/VBG
equipment/NN
as/IN
cassette/NN
recorders/NNS
does/VBZ
n't/RB
seem/VB
to/TO
increase/VB
the/DT
quantity/NN
of/IN
home/NN
copying/NN
./.
That/DT
finding/NN
,/,
the/DT
report/NN
says/VBZ
,/,
casts/VBZ
doubt/NN
on/IN
the/DT
record/NN
industry/NN
's/POS
contention/NN
that/IN
the/DT
new/JJ
generation/NN
of/IN
digital/JJ
recording/NN
equipment/NN
will/MD
inevitably/RB
lead/VB
to/TO
wholesale/JJ
abuse/NN
of/IN
copyrighted/VBN
material/NN
by/IN
home/NN
tapers/NNS
./.
The/DT
longstanding/JJ
position/NN
of/IN
the/DT
Recording/NNP
Industry/NNP
Association/NNP
of/IN
America/NNP
,/,
a/DT
trade/NN
group/NN
based/VBN
in/IN
Washington/NNP
,/,
D.C./NNP
,/,
is/VBZ
that/IN
record/NN
companies/NNS
,/,
performers/NNS
,/,
songwriters/NNS
and/CC
music/NN
publishers/NNS
need/VBP
to/TO
be/VB
remunerated/VBN
by/IN
government-imposed/JJ
fees/NNS
on/IN
the/DT
sale/NN
of/IN
blank/JJ
tapes/NNS
and/CC
recording/VBG
equipment/NN
to/TO
make/VB
up/IN
for/IN
royalties/NNS
lost/VBN
to/TO
home/NN
taping/NN
./.
``/``
I/PRP
think/VBP
it/PRP
is/VBZ
a/DT
nail/NN
in/IN
the/DT
coffin/NN
in/IN
any/DT
royalty/NN
tax/NN
proposal/NN
,/,
''/''
says/VBZ
Gary/NNP
Shapiro/NNP
,/,
vice/NN
president/NN
for/IN
government/NN
and/CC
legal/JJ
affairs/NNS
of/IN
the/DT
Electronic/NNP
Industries/NNPS
Association/NNP
in/IN
Washington/NNP
./.
``/``
What/WP
{/(
the/DT
report/NN
everything/NN
we/PRP
've/VBP
been/VBN
saying/VBG
for/IN
the/DT
past/JJ
eight/CD
or/CC
nine/CD
years/NNS
--/:
that/IN
audio/JJ
taping/NN
is/VBZ
the/DT
best/JJS
thing/NN
to/TO
happen/VB
for/IN
the/DT
recording/NN
industry/NN
./.
The/DT
people/NNS
who/WP
tape/VBP
the/DT
most/JJS
buy/VBP
the/DT
most/JJS
./.
''/''
Trish/NNP
Heimers/NNP
,/,
a/DT
spokesperson/NN
for/IN
RIAA/NNP
says/VBZ
her/PRP$
organization/NN
has/VBZ
n't/RB
received/VBN
a/DT
copy/NN
of/IN
the/DT
completed/VBN
report/NN
yet/RB
and/CC
has/VBZ
no/DT
immediate/JJ
comment/NN
./.
A/DT
recent/JJ
agreement/NN
between/IN
the/DT
recording/NN
industry/NN
and/CC
electronics/NNS
manufacturers/NNS
requires/VBZ
that/IN
any/DT
digital/JJ
audio/NN
tape/NN
,/,
or/CC
DAT/NNP
,/,
recorder/NN
sold/VBN
in/IN
the/DT
U.S./NNP
have/VB
a/DT
built-in/JJ
device/NN
that/WDT
restricts/VBZ
its/PRP$
ability/NN
to/TO
make/VB
second/JJ
copies/NNS
from/IN
DAT/NNP
tape/NN
copies/NNS
of/IN
digital/JJ
compact/JJ
disks/NNS
./.
But/CC
the/DT
disappointing/JJ
sales/NNS
of/IN
DAT/NNP
machines/NNS
here/RB
and/CC
abroad/RB
so/RB
far/RB
have/VBP
not/RB
seemed/VBN
to/TO
warrant/VB
the/DT
three/CD
years/NNS
of/IN
legal/JJ
wrangling/NN
that/WDT
went/VBD
into/IN
the/DT
agreement/NN
./.
Under/IN
current/JJ
copyright/JJ
laws/NNS
,/,
it/PRP
is/VBZ
considered/VBN
``/``
fair/JJ
use/NN
''/''
to/TO
reproduce/VB
copyrighted/VBN
material/NN
for/IN
one/NN
's/POS
personal/JJ
use/NN
or/CC
for/IN
use/NN
by/IN
one/NN
's/POS
family/NN
or/CC
friends/NNS
,/,
while/IN
copying/VBG
for/IN
purposes/NNS
of/IN
resale/NN
or/CC
profit/NN
is/VBZ
prohibited/VBN
./.
A/DT
survey/NN
contained/VBN
in/IN
the/DT
291-page/JJ
report/NN
,/,
``/``
Copyright/NNP
and/CC
Home/NNP
Copying/NNP
:/:
Technology/NN
Challenges/VBZ
the/DT
Law/NN
,/,
''/''
found/VBD
that/IN
most/JJS
people/NNS
consider/VBP
home/NN
copying/NN
for/IN
such/JJ
personal/JJ
use/NN
a/DT
``/``
right/NN
''/''
--/:
a/DT
right/NN
,/,
moreover/RB
,/,
that/WDT
was/VBD
exercised/VBN
by/IN
40/CD
%/NN
of/IN
Americans/NNPS
over/IN
the/DT
age/NN
of/IN
10/CD
in/IN
the/DT
past/NN
year/NN
./.
The/DT
study/NN
says/VBZ
that/IN
the/DT
``/``
ambiguous/JJ
legal/JJ
status/NN
''/''
of/IN
home/NN
copying/NN
makes/VBZ
it/PRP
``/``
appropriate/JJ
to/TO
examine/VB
the/DT
effects/NNS
on/IN
consumers/NNS
,/,
as/RB
well/RB
as/IN
on/IN
industry/NN
./.
''/''
Reports/NNS
by/IN
the/DT
Office/NNP
of/IN
Technology/NNP
Assessment/NNP
do/VBP
n't/RB
prescribe/VB
any/DT
specific/JJ
legislative/JJ
action/NN
but/CC
suggest/VBP
a/DT
range/NN
of/IN
options/NNS
that/IN
Congress/NNP
may/MD
pursue/VB
./.
The/DT
study/NN
also/RB
says/VBZ
that/IN
advent/NN
of/IN
new/JJ
communications/NNS
technologies/NNS
makes/VBZ
``/``
an/DT
explicit/JJ
congressional/JJ
definition/NN
of/IN
the/DT
legal/JJ
status/NN
of/IN
home/NN
copying/NN
more/RBR
desirable/JJ
in/IN
order/NN
to/TO
reduce/VB
legal/JJ
and/CC
market/NN
uncertainties/NNS
and/CC
to/TO
prevent/VB
de/FW
facto/FW
changes/NNS
to/TO
copyright/NN
law/NN
through/IN
technology/NN
,/,
''/''
and/CC
says/VBZ
that/IN
finding/VBG
an/DT
``/``
appropriate/JJ
balance/NN
of/IN
harms/NNS
and/CC
benefits/NNS
is/VBZ
a/DT
political/JJ
decision/NN
,/,
not/RB
a/DT
technical/JJ
one/CD
./.
''/''
Switzerland/NNP
's/POS
most/RBS
famous/JJ
raider/NN
says/VBZ
he/PRP
is/VBZ
n't/RB
one/CD
./.
Werner/NNP
K./NNP
Rey/NNP
believes/VBZ
fortunes/NNS
are/VBP
made/VBN
by/IN
being/VBG
friendly/JJ
./.
And/CC
in/IN
little/RB
more/JJR
than/IN
a/DT
decade/NN
of/IN
being/VBG
friendly/JJ
--/:
and/CC
at/IN
the/DT
same/JJ
time/NN
rocking/VBG
the/DT
staid/JJ
Swiss/JJ
business/NN
community/NN
with/IN
some/DT
U.S.-style/JJ
wheeling/NN
and/CC
dealing/NN
--/:
the/DT
46-year-old/JJ
Mr./NNP
Rey/NNP
has/VBZ
grown/VBN
from/IN
a/DT
modest/JJ
banker/NN
to/TO
a/DT
billionaire/NN
./.
He/PRP
achieved/VBD
this/DT
in/IN
part/NN
with/IN
an/DT
uncanny/JJ
talent/NN
for/IN
getting/VBG
his/PRP$
foot/NN
peacefully/RB
in/IN
the/DT
door/NN
of/IN
established/VBN
European/JJ
companies/NNS
./.
His/PRP$
latest/JJS
coup/NN
:/:
September/NNP
's/POS
masterminding/NN
of/IN
the/DT
five/CD
billion/CD
Swiss-franc/NN
$/$
3.07/CD
billion/CD
merger/NN
between/IN
Adia/NNP
S.A./NNP
,/,
the/DT
world/NN
's/POS
second-largest/JJ
temporary/JJ
employment/NN
agency/NN
,/,
and/CC
Inspectorate/NNP
International/NNP
S.A./NNP
,/,
a/DT
Rey-controlled/JJ
product-inspection/JJ
company/NN
./.
Shareholders/NNS
must/MD
approve/VB
the/DT
merger/NN
at/IN
general/JJ
meetings/NNS
of/IN
the/DT
two/CD
companies/NNS
in/IN
late/JJ
November/NNP
./.
But/CC
approval/NN
is/VBZ
almost/RB
certain/JJ
since/IN
Mr./NNP
Rey/NNP
and/CC
a/DT
friendly/JJ
Adia/NNP
management/NN
are/VBP
in/IN
control/NN
./.
After/IN
the/DT
transaction/NN
,/,
Mr./NNP
Rey/NNP
estimates/VBZ
the/DT
value/NN
of/IN
his/PRP$
20/CD
%/NN
stake/NN
in/IN
the/DT
new/JJ
company/NN
,/,
to/TO
be/VB
held/VBN
by/IN
his/PRP$
Omni/NNP
Holding/NNP
AG/NNP
,/,
will/MD
be/VB
about/IN
1/CD
billion/CD
Swiss/JJ
francs/NNS
./.
This/DT
will/MD
be/VB
his/PRP$
return/NN
on/IN
an/DT
original/JJ
investment/NN
of/IN
between/IN
50/CD
million/CD
Swiss/JJ
francs/NNS
and/CC
80/CD
million/CD
Swiss/JJ
francs/NNS
./.
Mr./NNP
Rey/NNP
bought/VBD
a/DT
controlling/VBG
stake/NN
in/IN
Inspectorate/NNP
for/IN
18/CD
million/CD
Swiss/JJ
francs/NNS
in/IN
1982/CD
,/,
building/VBG
up/IN
the/DT
little-known/JJ
engineering/NN
company/NN
with/IN
European/JJ
and/CC
U.S./NNP
acquisitions/NNS
./.
``/``
I/PRP
like/VBP
to/TO
succeed/VB
,/,
''/''
says/VBZ
Mr./NNP
Rey/NNP
during/IN
a/DT
recent/JJ
morning/NN
of/IN
working/VBG
at/IN
home/NN
,/,
which/WDT
he/PRP
also/RB
likes/VBZ
./.
Home/NN
is/VBZ
an/DT
estate/NN
with/IN
green/JJ
meadows/NNS
opening/VBG
onto/IN
Lake/NNP
Geneva/NNP
and/CC
a/DT
low-slung/JJ
house/NN
whose/WP$
rooms/NNS
overlook/VBP
the/DT
water/NN
and/CC
offer/VBP
a/DT
view/NN
of/IN
the/DT
French/NNP
Alps/NNP
./.
In/IN
the/DT
corner/NN
of/IN
his/PRP$
reception/NN
room/NN
is/VBZ
a/DT
delicate/JJ
antique/NN
desk/NN
piled/VBN
high/RB
with/IN
dossiers/NNS
./.
There/EX
is/VBZ
a/DT
small/JJ
Renoir/NNP
on/IN
the/DT
wall/NN
./.
Zurich-based/JJ
magazine/NN
Bilanz/NNP
lists/VBZ
Mr./NNP
Rey/NNP
as/IN
having/VBG
a/DT
fortune/NN
of/IN
about/IN
1.5/CD
billion/CD
Swiss/JJ
francs/NNS
./.
Writes/VBZ
Bilanz/NNP
:/:
``/``
No/DT
one/NN
in/IN
Switzerland/NNP
ever/RB
came/VBD
so/RB
far/RB
so/RB
fast/RB
.../:
He/PRP
was/VBD
simply/RB
the/DT
first/JJ
in/IN
this/DT
country/NN
to/TO
realize/VB
that/IN
treasures/NNS
were/VBD
just/RB
lying/VBG
around/IN
waiting/VBG
to/TO
be/VB
picked/VBN
up/IN
./.
In/IN
short/JJ
:/:
Rey/NNP
found/VBD
companies/NNS
with/IN
weak/JJ
earnings/NNS
but/CC
rich/JJ
assets/NNS
./.
''/''
However/RB
,/,
the/DT
Swiss/JJ
financial/JJ
press/NN
in/IN
general/JJ
,/,
as/RB
well/RB
as/IN
many/JJ
analysts/NNS
,/,
have/VBP
had/VBN
a/DT
hard/JJ
time/NN
making/VBG
up/IN
their/PRP$
minds/NNS
about/IN
Mr./NNP
Rey/NNP
and/CC
his/PRP$
un-Swiss/JJ
ways/NNS
./.
For/IN
Switzerland/NNP
's/POS
most/JJS
prestigious/JJ
newspaper/NN
,/,
Neue/NNP
Zuercher/NNP
Zeitung/NNP
,/,
Mr./NNP
Rey/NNP
seems/VBZ
destined/VBN
to/TO
remain/VB
the/DT
``/``
former/JJ
Bally/NNP
raider/NN
,/,
''/''
an/DT
image/NN
that/WDT
has/VBZ
proved/VBN
hard/RB
to/TO
overcome/VB
./.
In/IN
1976/CD
,/,
as/IN
an/DT
upstart/NN
in/IN
the/DT
eyes/NNS
of/IN
Switzerland/NNP
's/POS
establishment/NN
,/,
Mr./NNP
Rey/NNP
laid/VBD
the/DT
foundations/NNS
of/IN
his/PRP$
present-day/JJ
prominence/NN
with/IN
an/DT
unheard-of/JJ
raid/NN
on/IN
Bally/NNP
,/,
the/DT
country/NN
's/POS
traditional/JJ
shoemaker/NN
./.
Sitting/VBG
beside/IN
a/DT
banker/NN
at/IN
a/DT
luncheon/NN
in/IN
London/NNP
,/,
where/WRB
he/PRP
was/VBD
working/VBG
as/IN
a/DT
financial/JJ
consultant/NN
,/,
he/PRP
learned/VBD
that/IN
a/DT
large/JJ
packet/NN
of/IN
Bally/NNP
's/POS
shares/NNS
was/VBD
up/IN
for/IN
sale/NN
./.
Looking/VBG
into/IN
Bally/NNP
,/,
he/PRP
could/MD
hardly/RB
believe/VB
what/WP
he/PRP
saw/VBD
:/:
a/DT
company/NN
with/IN
enormous/JJ
real-estate/NN
holdings/NNS
in/IN
major/JJ
European/JJ
cities/NNS
and/CC
a/DT
market/NN
capitalization/NN
of/IN
28/CD
million/CD
Swiss/JJ
francs/NNS
;/:
it/PRP
had/VBD
7,000/CD
employees/NNS
./.
Investing/VBG
four/CD
million/CD
Swiss/JJ
francs/NNS
earned/VBN
from/IN
his/PRP$
financial/JJ
transactions/NNS
and/CC
two/CD
million/CD
Swiss/JJ
francs/NNS
from/IN
his/PRP$
parents/NNS
and/CC
his/PRP$
wife/NN
,/,
Mr./NNP
Rey/NNP
acquired/VBD
20/CD
%/NN
of/IN
Bally/NNP
's/POS
shares/NNS
./.
But/CC
such/JJ
tactics/NNS
were/VBD
alien/JJ
to/TO
Switzerland/NNP
in/IN
1976/CD
,/,
and/CC
still/RB
are/VBP
n't/RB
common/JJ
because/IN
of/IN
share/NN
restrictions/NNS
that/IN
companies/NNS
are/VBP
allowed/VBN
to/TO
maintain/VB
./.
Eventually/RB
,/,
Mr./NNP
Rey/NNP
was/VBD
forced/VBN
to/TO
sell/VB
his/PRP$
Bally/NNP
shares/NNS
to/TO
the/DT
weapons/NNS
maker/NN
Oerlikon-Buehrle/NNP
Holding/NNP
AG/NNP
as/IN
establishment/NN
pressure/NN
grew/VBD
on/IN
this/DT
hostile/JJ
move/NN
into/IN
the/DT
Swiss/JJ
old/JJ
boys/NNS
'/POS
network/NN
./.
Mr./NNP
Rey/NNP
made/VBD
50/CD
million/CD
Swiss/JJ
francs/NNS
on/IN
the/DT
sale/NN
./.
``/``
Bally/NNP
was/VBD
not/RB
an/DT
unfriendly/JJ
takeover/NN
,/,
''/''
he/PRP
insists/VBZ
./.
Buying/VBG
from/IN
willing/JJ
shareholders/NNS
makes/VBZ
an/DT
unfriendly/JJ
takeover/NN
impossible/JJ
,/,
Mr./NNP
Rey/NNP
contends/VBZ
./.
``/``
I/PRP
bought/VBD
from/IN
willing/JJ
shareholders/NNS
./.
''/''
Nevertheless/RB
,/,
Mr./NNP
Rey/NNP
has/VBZ
been/VBN
very/RB
careful/JJ
since/IN
then/RB
to/TO
make/VB
sure/JJ
his/PRP$
moves/NNS
are/VBP
welcome/JJ
./.
And/CC
he/PRP
has/VBZ
worked/VBN
to/TO
shed/VB
his/PRP$
raider/NN
image/NN
./.
In/IN
1979/CD
,/,
his/PRP$
career/NN
as/IN
an/DT
industrialist/NN
began/VBD
with/IN
the/DT
acquisition/NN
of/IN
the/DT
Swiss/JJ
metals/NNS
works/NNS
Selve/NNP
,/,
based/VBN
in/IN
Thun/NNP
./.
With/IN
the/DT
nonferrous/JJ
metals/NNS
business/NN
undermined/VBN
in/IN
Switzerland/NNP
by/IN
tough/JJ
foreign/JJ
competition/NN
and/CC
high/JJ
domestic/JJ
costs/NNS
,/,
this/DT
looked/VBD
like/IN
a/DT
dull/JJ
undertaking/NN
./.
But/CC
Mr./NNP
Rey/NNP
brought/VBD
about/IN
a/DT
merger/NN
in/IN
the/DT
next/JJ
few/JJ
years/NNS
between/IN
the/DT
country/NN
's/POS
major/JJ
producers/NNS
;/:
the/DT
increased/VBN
efficiency/NN
has/VBZ
perked/VBN
up/IN
the/DT
industry/NN
./.
Three/CD
years/NNS
later/RB
,/,
machinery/NN
producer/NN
Ateliers/NNP
de/NNP
Constructions/NNP
Mecaniques/NNP
de/NNP
Vevey/NNP
S.A./NNP
was/VBD
to/TO
become/VB
part/NN
of/IN
the/DT
Rey/NNP
empire/NN
./.
Once/RB
again/RB
the/DT
company/NN
's/POS
future/NN
looked/VBD
less/JJR
than/IN
rosy/JJ
./.
But/CC
after/IN
restructuring/VBG
under/IN
new/JJ
management/NN
,/,
the/DT
profits/NNS
began/VBD
rolling/VBG
in/IN
./.
A/DT
major/JJ
boost/NN
to/TO
Mr./NNP
Rey/NNP
's/POS
respectability/NN
among/IN
the/DT
Swiss/NNPS
came/VBD
in/IN
1986/CD
when/WRB
he/PRP
sold/VBD
60/CD
%/NN
of/IN
his/PRP$
Phibro/NNP
Bank/NNP
to/TO
the/DT
conservative/JJ
Swiss/JJ
cantonal/JJ
banks/NNS
./.
They/PRP
renamed/VBD
it/PRP
Swiss/NNP
Cantobank/NNP
and/CC
are/VBP
using/VBG
it/PRP
to/TO
expand/VB
abroad/RB
./.
In/IN
1987/CD
,/,
Mr./NNP
Rey/NNP
bested/VBD
leading/VBG
publishing/VBG
houses/NNS
to/TO
take/VB
over/IN
Switzerland/NNP
's/POS
Jean/NNP
Frey/NNP
AG/NNP
,/,
a/DT
major/JJ
producer/NN
of/IN
magazines/NNS
and/CC
newspapers/NNS
./.
And/CC
with/IN
the/DT
recent/JJ
acquisition/NN
of/IN
30/CD
%/NN
of/IN
Winterthur-based/JJ
machinery/NN
manufacturer/NN
Gebrueder/NNP
Sulzer/NNP
AG/NNP
,/,
Mr./NNP
Rey/NNP
has/VBZ
enjoyed/VBN
the/DT
status/NN
of/IN
white/JJ
knight/NN
./.
Sulzer/NNP
preferred/VBD
him/PRP
to/TO
financier/NN
Tito/NNP
Tettamanti/NNP
,/,
whose/WP$
secretive/JJ
raid/NN
on/IN
the/DT
company/NN
's/POS
stock/NN
had/VBD
led/VBN
to/TO
a/DT
bitter/JJ
battle/NN
./.
Meanwhile/RB
,/,
as/IN
such/JJ
strategic/JJ
investments/NNS
have/VBP
mounted/VBN
,/,
the/DT
merchant-banking/JJ
arm/NN
of/IN
Mr./NNP
Rey/NNP
's/POS
Omni/NNP
Holding/NNP
has/VBZ
been/VBN
busily/RB
buying/VBG
and/CC
selling/VBG
dozens/NNS
of/IN
companies/NNS
,/,
often/RB
after/IN
a/DT
financial/JJ
or/CC
corporate/JJ
restructuring/NN
./.
Today/NN
,/,
this/DT
branch/NN
of/IN
Mr./NNP
Rey/NNP
's/POS
empire/NN
runs/VBZ
under/IN
the/DT
name/NN
Omnicorp/NNP
Offering/NNP
Services/NNPS
and/CC
handles/VBZ
mergers/NNS
and/CC
acquisitions/NNS
,/,
placement/NN
of/IN
securities/NNS
and/CC
real/JJ
estate/NN
./.
In/IN
its/PRP$
portfolio/NN
are/VBP
such/JJ
diverse/JJ
companies/NNS
as/IN
United/JJ
Kingdom-based/JJ
Air/NNP
Europe/NNP
;/:
Checkrobot/NNP
Inc./NNP
,/,
a/DT
U.S./NNP
company/NN
that/WDT
makes/VBZ
supermarket/NN
checkout/NN
machines/NNS
;/:
Norment/NNP
Industries/NNPS
,/,
a/DT
U.S./NNP
manufacturer/NN
of/IN
securities/NNS
systems/NNS
;/:
Com/NNP
Systems/NNPS
Inc./NNP
,/,
a/DT
U.S./NNP
regional/JJ
telephone/NN
company/NN
;/:
and/CC
major/JJ
real-estate/NN
projects/NNS
in/IN
the/DT
U.S./NNP
and/CC
Europe/NNP
./.
For/IN
financial/JJ
analysts/NNS
,/,
reading/VBG
Omni/NNP
's/POS
accounts/NNS
is/VBZ
a/DT
tough/JJ
challenge/NN
./.
``/``
Companies/NNS
move/VBP
in/IN
and/CC
out/IN
,/,
''/''
says/VBZ
Helga/NNP
Kern/NNP
of/IN
KK/NNP
Swiss/NNP
Investment/NNP
./.
Financial/JJ
analysts/NNS
note/VBP
that/IN
Mr./NNP
Rey/NNP
is/VBZ
attracted/VBN
to/TO
companies/NNS
that/WDT
are/VBP
undervalued/VBN
on/IN
the/DT
basis/NN
of/IN
their/PRP$
real-estate/NN
interests/NNS
./.
In/IN
August/NNP
,/,
Omni/NNP
unexpectedly/RB
bought/VBD
Inspectorate/NNP
's/POS
80/CD
%/NN
stake/NN
in/IN
Harpener/NNP
AG/NNP
of/IN
West/NNP
Germany/NNP
,/,
a/DT
land-rich/JJ
company/NN
./.
The/DT
internal/JJ
transaction/NN
within/IN
the/DT
Rey/NNP
empire/NN
puzzled/VBD
Harpener/NNP
's/POS
small/JJ
shareholders/NNS
,/,
but/CC
analysts/NNS
say/VBP
it/PRP
makes/VBZ
sense/NN
for/IN
Inspectorate-Adia/NNP
to/TO
focus/VB
on/IN
its/PRP$
main/JJ
businesses/NNS
of/IN
product/NN
inspection/NN
and/CC
temporary/JJ
help/NN
./.
Mr./NNP
Rey/NNP
says/VBZ
the/DT
move/NN
is/VBZ
yet/RB
another/DT
example/NN
of/IN
his/PRP$
conservatism/NN
./.
He/PRP
explains/VBZ
that/IN
companies/NNS
with/IN
real/JJ
estate/NN
give/VBP
``/``
security/NN
./.
''/''
The/DT
real/JJ
estate/NN
can/MD
be/VB
used/VBN
,/,
he/PRP
points/VBZ
out/IN
,/,
as/IN
guarantees/NNS
for/IN
bank/NN
loans/NNS
for/IN
corporate/JJ
development/NN
./.
He/PRP
says/VBZ
he/PRP
wants/VBZ
to/TO
``/``
influence/VB
''/''
but/CC
not/RB
``/``
manage/VB
''/''
companies/NNS
./.
``/``
I/PRP
do/VBP
n't/RB
want/VB
to/TO
be/VB
like/IN
{/(
financier/NN
Alan/NNP
Bond/NNP
and/CC
the/DT
other/JJ
Australians/NNPS
./.
I/PRP
do/VBP
n't/RB
want/VB
companies/NNS
to/TO
be/VB
built/VBN
around/IN
me/PRP
as/IN
a/DT
person/NN
./.
I/PRP
want/VBP
them/PRP
to/TO
stand/VB
alone/RB
./.
''/''
Ultimate/NNP
Corp./NNP
signed/VBD
a/DT
letter/NN
of/IN
intent/NN
to/TO
market/VB
Hewlett-Packard/NNP
Co./NNP
minicomputers/NNS
,/,
the/DT
companies/NNS
said/VBD
./.
Ultimate/NNP
expects/VBZ
the/DT
3/CD
1\/2-year/JJ
agreement/NN
to/TO
generate/VB
$/$
100/CD
million/CD
in/IN
sales/NNS
,/,
but/CC
it/PRP
would/MD
n't/RB
estimate/VB
profit/NN
./.
Under/IN
terms/NNS
of/IN
the/DT
pact/NN
,/,
Ultimate/NNP
,/,
a/DT
computer-systems/NNS
concern/NN
,/,
will/MD
market/VB
the/DT
full/JJ
line/NN
of/IN
HP/NNP
9000/CD
series/NN
800/CD
multipleuser/JJ
minicomputers/NNS
./.
Hewlett-Packard/NNP
is/VBZ
based/VBN
in/IN
Palo/NNP
Alto/NNP
,/,
Calif/NNP
./.
In/IN
the/DT
second/JJ
step/NN
of/IN
a/DT
reorganization/NN
that/WDT
began/VBD
earlier/RBR
this/DT
year/NN
,/,
Boeing/NNP
Co./NNP
said/VBD
it/PRP
will/MD
create/VB
a/DT
Defense/NNP
and/CC
Space/NNP
Group/NNP
to/TO
consolidate/VB
several/JJ
divisions/NNS
./.
Meanwhile/RB
,/,
Boeing/NNP
officials/NNS
and/CC
representatives/NNS
of/IN
the/DT
Machinists/NNS
union/NN
met/VBD
separately/RB
last/JJ
night/NN
with/IN
a/DT
federal/JJ
mediator/NN
in/IN
an/DT
attempt/NN
to/TO
break/VB
the/DT
month-old/JJ
strike/NN
that/WDT
has/VBZ
shut/VBN
the/DT
aerospace/NN
giant/NN
's/POS
assembly/NN
lines/NNS
at/IN
a/DT
time/NN
when/WRB
it/PRP
has/VBZ
an/DT
$/$
80/CD
billion/CD
backlog/NN
of/IN
jetliner/NN
orders/NNS
./.
The/DT
two/CD
sides/NNS
were/VBD
scheduled/VBN
to/TO
meet/VB
with/IN
the/DT
mediator/NN
this/DT
morning/NN
./.
Machinists/NNS
already/RB
have/VBP
rejected/VBN
a/DT
package/NN
that/WDT
would/MD
provide/VB
a/DT
10/CD
%/NN
pay/NN
raise/NN
plus/CC
bonuses/NNS
over/IN
the/DT
three-year/JJ
life/NN
of/IN
the/DT
contract/NN
./.
Boeing/NNP
has/VBZ
said/VBN
repeatedly/RB
it/PRP
wo/MD
n't/RB
expand/VB
its/PRP$
offer/NN
and/CC
the/DT
machinists/NNS
have/VBP
responded/VBN
that/IN
the/DT
offer/NN
is/VBZ
n't/RB
good/JJ
enough/RB
./.
However/RB
,/,
the/DT
resolve/NN
of/IN
some/DT
of/IN
the/DT
striking/JJ
57,000/CD
machinists/NNS
might/MD
be/VB
weakening/VBG
./.
About/IN
1,000/CD
strikers/NNS
signed/VBD
petitions/NNS
last/JJ
week/NN
calling/VBG
for/IN
Boeing/NNP
and/CC
Machinists/NNPS
representatives/NNS
to/TO
schedule/VB
new/JJ
meetings/NNS
./.
The/DT
two/CD
sides/NNS
had/VBD
n't/RB
met/VBN
since/IN
Oct./NNP
18/CD
./.
While/IN
Boeing/NNP
's/POS
commercial/JJ
business/NN
is/VBZ
booming/JJ
,/,
its/PRP$
military/JJ
business/NN
is/VBZ
feeling/VBG
the/DT
effects/NNS
of/IN
a/DT
declining/VBG
defense/NN
budget/NN
after/IN
a/DT
strong/JJ
buildup/NN
during/IN
the/DT
Reagan/JJ
presidency/NN
./.
In/IN
May/NNP
,/,
the/DT
company/NN
consolidated/VBD
its/PRP$
Aerospace/NNP
and/CC
Electronics/NNP
groups/NNS
;/:
the/DT
new/JJ
Defense/NNP
and/CC
Space/NNP
Group/NNP
will/MD
contain/VB
the/DT
Aerospace/NNP
and/CC
Electronics/NNP
division/NN
and/CC
Advanced/NNP
Systems/NNPS
,/,
both/DT
based/VBN
in/IN
the/DT
Seattle/NNP
area/NN
;/:
Boeing/NNP
Helicopters/NNPS
in/IN
Philadelphia/NNP
;/:
Boeing/NNP
Military/NNP
Airplanes/NNPS
in/IN
Wichita/NNP
,/,
Kan./NNP
,/,
and/CC
ArgoSystems/NNPS
in/IN
Sunnyvale/NNP
,/,
Calif/NNP
./.
B./NNP
Dan/NNP
Pinick/NNP
,/,
president/NN
of/IN
Boeing/NNP
Aerospace/NNP
and/CC
Electronics/NNP
,/,
will/MD
become/VB
president/NN
of/IN
the/DT
new/JJ
group/NN
,/,
which/WDT
will/MD
become/VB
operational/JJ
Jan./NNP
2/CD
./.
In/IN
addition/NN
,/,
Boeing/NNP
said/VBD
it/PRP
also/RB
will/MD
reorganize/VB
all/PDT
its/PRP$
work/NN
in/IN
Wichita/NNP
into/IN
military/JJ
and/CC
commercial/JJ
divisions/NNS
./.
All/DT
of/IN
the/DT
changes/NNS
will/MD
reduce/VB
its/PRP$
overhead/NN
and/CC
streamline/VB
operations/NNS
,/,
Boeing/NNP
said/VBD
./.
Analysts/NNS
agreed/VBD
./.
``/``
It/PRP
's/VBZ
a/DT
further/JJ
step/NN
to/TO
better/JJR
returns/NNS
in/IN
the/DT
hemorrhaging/JJ
defense/NN
business/NN
,/,
''/''
said/VBD
Steven/NNP
Binder/NNP
,/,
an/DT
analyst/NN
with/IN
Bear/NNP
,/,
Stearns/NNP
&/CC
Co./NNP
in/IN
New/NNP
York/NNP
./.
``/``
They/PRP
had/VBD
to/TO
do/VB
it/PRP
./.
''/''
Howard/NNP
Rubel/NNP
,/,
an/DT
analyst/NN
with/IN
C.J./NNP
Lawrence/NNP
,/,
Morgan/NNP
Grenfell/NNP
Inc./NNP
in/IN
New/NNP
York/NNP
,/,
said/VBD
the/DT
shift/NN
reflects/VBZ
Boeing/NNP
confidence/NN
in/IN
Mr./NNP
Pinick/NNP
,/,
described/VBN
by/IN
Mr./NNP
Rubel/NNP
as/IN
an/DT
expert/NN
on/IN
doing/VBG
business/NN
with/IN
the/DT
military/NN
./.
``/``
His/PRP$
side/NN
of/IN
the/DT
business/NN
has/VBZ
been/VBN
successful/JJ
in/IN
a/DT
tough/JJ
environment/NN
,/,
''/''
Mr./NNP
Rubel/NNP
said/VBD
./.
A/DT
two-day/JJ
meeting/NN
of/IN
representatives/NNS
of/IN
Cocom/NNP
,/,
the/DT
17-nation/JJ
group/NN
that/WDT
oversees/VBZ
exports/NNS
of/IN
sensitive/JJ
goods/NNS
to/TO
communist/NN
countries/NNS
,/,
did/VBD
n't/RB
take/VB
any/DT
substantive/JJ
decisions/NNS
on/IN
trimming/VBG
the/DT
list/NN
of/IN
items/NNS
under/IN
controls/NNS
./.
Nor/CC
did/VBD
it/PRP
ease/VB
restrictions/NNS
on/IN
exports/NNS
to/TO
Poland/NNP
and/CC
Hungary/NNP
,/,
according/VBG
to/TO
U.S./NNP
officials/NNS
who/WP
attended/VBD
the/DT
talks/NNS
./.
The/DT
U.S./NNP
had/VBD
been/VBN
under/IN
pressure/NN
from/IN
several/JJ
Cocom/NNP
members/NNS
,/,
especially/RB
France/NNP
,/,
West/NNP
Germany/NNP
and/CC
Italy/NNP
,/,
to/TO
ease/VB
restrictions/NNS
on/IN
some/DT
types/NNS
of/IN
machine/NN
tools/NNS
,/,
which/WDT
those/DT
countries/NNS
argued/VBD
were/VBD
now/RB
widely/RB
available/JJ
to/TO
East/NNP
Bloc/NNP
countries/NNS
from/IN
non-Cocom/JJ
members/NNS
./.
For/IN
several/JJ
years/NNS
some/DT
European/JJ
countries/NNS
have/VBP
complained/VBN
that/IN
outdated/JJ
Cocom/NNP
lists/NNS
and/CC
restrictions/NNS
served/VBD
more/RBR
to/TO
hamper/VB
their/PRP$
trade/NN
than/IN
to/TO
add/VB
to/TO
Western/JJ
security/NN
./.
Some/DT
countries/NNS
also/RB
have/VBP
been/VBN
pressing/VBG
for/IN
special/JJ
treatment/NN
for/IN
Hungary/NNP
and/CC
Poland/NNP
as/IN
they/PRP
move/VBP
toward/IN
more/RBR
democratic/JJ
rule/NN
,/,
just/RB
as/IN
special/JJ
treatment/NN
had/VBD
been/VBN
agreed/VBN
on/IN
for/IN
China/NNP
./.
But/CC
U.S./NNP
officials/NNS
said/VBD
representatives/NNS
at/IN
the/DT
meeting/NN
decided/VBD
that/IN
this/DT
was/VBD
``/``
a/DT
matter/NN
for/IN
further/JJ
discussion/NN
at/IN
future/JJ
meetings/NNS
./.
''/''
They/PRP
added/VBD
that/IN
``/``
all/DT
of/IN
us/PRP
Cocom/NNP
members/NNS
the/DT
changes/NNS
in/IN
Hungary/NNP
and/CC
Poland/NNP
in/IN
a/DT
positive/JJ
way/NN
,/,
but/CC
a/DT
question/NN
of/IN
this/DT
scope/NN
deserves/VBZ
further/JJ
discussion/NN
and/CC
study/NN
./.
''/''
The/DT
officials/NNS
also/RB
said/VBD
the/DT
meeting/NN
agreed/VBD
to/TO
continue/VB
treating/VBG
China/NNP
as/IN
a/DT
special/JJ
case/NN
,/,
despite/IN
the/DT
recent/JJ
repression/NN
of/IN
dissent/NN
there/RB
,/,
but/CC
to/TO
offer/VB
no/DT
further/JJ
concessions/NNS
./.
The/DT
U.S./NNP
officials/NNS
said/VBD
that/IN
despite/IN
the/DT
rapid/JJ
changes/NNS
under/IN
way/NN
in/IN
Eastern/NNP
Europe/NNP
and/CC
the/DT
Soviet/NNP
Union/NNP
,/,
all/PDT
the/DT
Cocom/NNP
members/NNS
agreed/VBD
on/IN
``/``
the/DT
continuing/VBG
need/NN
for/IN
this/DT
organization/NN
,/,
''/''
which/WDT
was/VBD
founded/VBN
40/CD
years/NNS
ago/IN
at/IN
the/DT
start/NN
of/IN
the/DT
Cold/NNP
War/NNP
./.
The/DT
officials/NNS
said/VBD
the/DT
meeting/NN
agreed/VBD
to/TO
continue/VB
working/VBG
toward/IN
``/``
streamlining/VBG
''/''
Cocom/NNP
's/POS
restricted/VBN
products/NNS
list/NN
,/,
and/CC
to/TO
improve/VB
procedures/NNS
for/IN
punishing/VBG
companies/NNS
that/WDT
do/VBP
n't/RB
comply/VB
with/IN
the/DT
export/NN
restrictions/NNS
./.
The/DT
officials/NNS
said/VBD
this/DT
meeting/NN
``/``
put/VBD
in/IN
motion/NN
''/''
procedural/JJ
steps/NNS
that/WDT
would/MD
speed/VB
up/IN
both/DT
of/IN
these/DT
functions/NNS
,/,
but/CC
that/IN
no/DT
specific/JJ
decisions/NNS
were/VBD
taken/VBN
on/IN
either/DT
matter/NN
./.
Unisys/NNP
Corp./NNP
's/POS
announcement/NN
Friday/NNP
of/IN
a/DT
$/$
648.2/CD
million/CD
loss/NN
for/IN
the/DT
third/JJ
quarter/NN
showed/VBD
that/IN
the/DT
company/NN
is/VBZ
moving/VBG
even/RB
faster/RBR
than/IN
expected/VBN
to/TO
take/VB
write-offs/NNS
on/IN
its/PRP$
various/JJ
problems/NNS
and/CC
prepare/VB
for/IN
a/DT
turnaround/NN
next/IN
year/NN
./.
At/IN
the/DT
same/JJ
time/NN
,/,
the/DT
sheer/NN
size/NN
of/IN
the/DT
loss/NN
,/,
coupled/VBN
with/IN
a/DT
slowing/NN
of/IN
orders/NNS
,/,
made/VBD
some/DT
securities/NNS
analysts/NNS
wonder/VB
just/RB
how/WRB
strong/JJ
that/DT
turnaround/NN
will/MD
be/VB
at/IN
the/DT
computer/NN
maker/NN
and/CC
defense-electronics/NNS
concern/NN
./.
``/``
Unisys/NNP
is/VBZ
getting/VBG
clobbered/VBN
./.
Just/RB
clobbered/VBN
,/,
''/''
said/VBD
Ulric/NNP
Weil/NNP
,/,
an/DT
analyst/NN
at/IN
Weil/NNP
&/CC
Associates/NNPS
who/WP
had/VBD
once/RB
been/VBN
high/JJ
on/IN
the/DT
company/NN
./.
``/``
The/DT
quarter/NN
was/VBD
terrible/JJ
,/,
and/CC
the/DT
future/NN
looks/VBZ
anything/NN
but/CC
encouraging/VBG
./.
''/''
Unisys/NNP
,/,
whose/WP$
revenue/NN
inched/VBD
up/RB
3.7/CD
%/NN
in/IN
the/DT
quarter/NN
to/TO
$/$
2.35/CD
billion/CD
from/IN
$/$
2.27/CD
billion/CD
in/IN
the/DT
year-earlier/JJ
quarter/NN
,/,
had/VBD
an/DT
operating/NN
loss/NN
of/IN
about/IN
$/$
30/CD
million/CD
./.
On/IN
top/NN
of/IN
that/DT
,/,
the/DT
Blue/NNP
Bell/NNP
,/,
Pa./NNP
,/,
concern/NN
took/VBD
a/DT
$/$
230/CD
million/CD
charge/NN
related/VBN
to/TO
the/DT
layoffs/NNS
of/IN
8,000/CD
employees/NNS
./.
That/DT
is/VBZ
at/IN
the/DT
high/JJ
end/NN
of/IN
the/DT
range/NN
of/IN
7,000/CD
to/TO
8,000/CD
employees/NNS
that/IN
Unisys/NNP
said/VBD
a/DT
month/NN
ago/IN
would/MD
be/VB
laid/VBN
off/IN
./.
Unisys/NNP
said/VBD
that/DT
should/MD
help/VB
it/PRP
save/VB
$/$
500/CD
million/CD
a/DT
year/NN
in/IN
costs/NNS
,/,
again/RB
at/IN
the/DT
high/JJ
end/NN
of/IN
the/DT
previously/RB
reported/VBN
range/NN
of/IN
$/$
400/CD
million/CD
to/TO
$/$
500/CD
million/CD
./.
The/DT
company/NN
also/RB
took/VBD
a/DT
write-off/NN
of/IN
$/$
150/CD
million/CD
to/TO
cover/VB
losses/NNS
on/IN
some/DT
fixed-price/JJ
defense/NN
contracts/NNS
,/,
as/IN
some/DT
new/JJ
managers/NNS
took/VBD
a/DT
hard/JJ
look/NN
at/IN
the/DT
prospects/NNS
for/IN
that/DT
slow-growing/JJ
business/NN
./.
In/IN
addition/NN
,/,
Unisys/NNP
set/VBD
up/IN
an/DT
unspecified/JJ
reserve/NN
--/:
apparently/RB
$/$
60/CD
million/CD
to/TO
$/$
70/CD
million/CD
--/:
to/TO
cover/VB
the/DT
minimum/JJ
amount/NN
it/PRP
will/MD
have/VB
to/TO
pay/VB
the/DT
government/NN
because/IN
of/IN
its/PRP$
involvement/NN
in/IN
the/DT
defense-procurement/NN
scandal/NN
./.
Unisys/NNP
also/RB
noted/VBD
that/IN
it/PRP
paid/VBD
$/$
78.8/CD
million/CD
in/IN
taxes/NNS
during/IN
the/DT
quarter/NN
,/,
even/RB
though/IN
tax/NN
payments/NNS
normally/RB
would/MD
be/VB
minimal/JJ
in/IN
a/DT
quarter/NN
that/WDT
produced/VBD
such/PDT
a/DT
big/JJ
loss/NN
./.
The/DT
tax/NN
payments/NNS
will/MD
leave/VB
Unisys/NNP
with/IN
$/$
225/CD
million/CD
in/IN
loss/NN
carry-forwards/NNS
that/WDT
will/MD
cut/VB
tax/NN
payments/NNS
in/IN
future/JJ
quarters/NNS
./.
In/IN
addition/NN
,/,
Unisys/NNP
said/VBD
it/PRP
reduced/VBD
computer/NN
inventories/NNS
a/DT
further/JJ
$/$
100/CD
million/CD
during/IN
the/DT
quarter/NN
,/,
leaving/VBG
it/PRP
within/IN
$/$
100/CD
million/CD
of/IN
its/PRP$
goal/NN
of/IN
a/DT
reduction/NN
of/IN
$/$
500/CD
million/CD
by/IN
the/DT
end/NN
of/IN
the/DT
year/NN
./.
Still/RB
,/,
Unisys/NNP
said/VBD
its/PRP$
European/JJ
business/NN
was/VBD
weak/JJ
during/IN
the/DT
quarter/NN
,/,
a/DT
worrisome/JJ
sign/NN
given/VBN
that/IN
the/DT
company/NN
has/VBZ
relied/VBN
on/IN
solid/JJ
results/NNS
overseas/JJ
to/TO
overcome/VB
weakness/NN
in/IN
the/DT
U.S./NNP
over/IN
the/DT
past/JJ
several/JJ
quarters/NNS
./.
The/DT
company/NN
also/RB
reported/VBD
slower/JJR
growth/NN
in/IN
another/DT
important/JJ
business/NN
:/:
systems/NNS
that/WDT
use/VBP
the/DT
Unix/NNP
operating/VBG
system/NN
./.
That/DT
would/MD
be/VB
a/DT
huge/JJ
problem/NN
if/IN
it/PRP
were/VBD
to/TO
continue/VB
,/,
because/IN
Unisys/NNP
is/VBZ
betting/VBG
its/PRP$
business/NN
on/IN
the/DT
assumption/NN
that/IN
customers/NNS
want/VBP
to/TO
move/VB
away/RB
from/IN
using/VBG
operating/VBG
systems/NNS
that/WDT
run/VBP
on/IN
only/RB
one/CD
manufacturer/NN
's/POS
equipment/NN
and/CC
toward/IN
systems/NNS
--/:
mainly/RB
Unix/NNP
--/:
that/WDT
work/VBP
on/IN
almost/RB
anyone/NN
's/POS
machines/NNS
./.
In/IN
addition/NN
,/,
Unisys/NNP
must/MD
deal/VB
with/IN
its/PRP$
increasingly/RB
oppressive/JJ
debt/NN
load/NN
./.
Debt/NN
has/VBZ
risen/VBN
to/TO
around/IN
$/$
4/CD
billion/CD
,/,
or/CC
about/IN
50/CD
%/NN
of/IN
total/JJ
capitalization/NN
./.
That/DT
means/VBZ
Unisys/NNP
must/MD
pay/VB
about/IN
$/$
100/CD
million/CD
in/IN
interest/NN
every/DT
quarter/NN
,/,
on/IN
top/NN
of/IN
$/$
27/CD
million/CD
in/IN
dividends/NNS
on/IN
preferred/JJ
stock/NN
./.
Jim/NNP
Unruh/NNP
,/,
Unisys/NNP
's/POS
president/NN
,/,
said/VBD
he/PRP
is/VBZ
approaching/VBG
next/JJ
year/NN
with/IN
caution/NN
./.
He/PRP
said/VBD
the/DT
strength/NN
of/IN
the/DT
world-wide/JJ
economy/NN
is/VBZ
suspect/JJ
,/,
and/CC
does/VBZ
n't/RB
see/VB
much/JJ
revenue/NN
growth/NN
in/IN
the/DT
cards/NNS
./.
He/PRP
also/RB
said/VBD
that/IN
the/DT
price/NN
wars/NNS
flaring/VBG
up/IN
in/IN
parts/NNS
of/IN
the/DT
computer/NN
industry/NN
will/MD
continue/VB
through/IN
next/JJ
year/NN
./.
He/PRP
said/VBD
the/DT
move/NN
toward/IN
standard/JJ
operating/VBG
systems/NNS
means/VBZ
customers/NNS
are/VBP
n't/RB
locked/VBN
into/IN
buying/VBG
from/IN
their/PRP$
traditional/JJ
computer/NN
supplier/NN
and/CC
can/MD
force/VB
prices/NNS
down/RP
./.
That/DT
,/,
he/PRP
said/VBD
,/,
is/VBZ
why/WRB
Unisys/NNP
is/VBZ
overhauling/VBG
its/PRP$
whole/JJ
business/NN
:/:
It/PRP
needs/VBZ
to/TO
prepare/VB
for/IN
a/DT
world/NN
in/IN
which/WDT
profit/NN
margins/NNS
will/MD
be/VB
lower/JJR
than/IN
computer/NN
companies/NNS
have/VBP
been/VBN
used/VBN
to/TO
./.
``/``
We/PRP
've/VBP
approached/VBN
this/DT
not/RB
as/IN
a/DT
response/NN
to/TO
a/DT
temporary/JJ
condition/NN
in/IN
the/DT
industry/NN
but/CC
as/IN
a/DT
fundamental/JJ
change/NN
the/DT
industry/NN
is/VBZ
going/VBG
through/IN
,/,
''/''
Mr./NNP
Unruh/NNP
said/VBD
./.
``/``
The/DT
information-systems/NNS
industry/NN
is/VBZ
still/RB
going/VBG
to/TO
be/VB
a/DT
high-growth/NN
business/NN
,/,
and/CC
we/PRP
're/VBP
confident/JJ
that/IN
we/PRP
have/VBP
tremendous/JJ
assets/NNS
as/IN
a/DT
company/NN
./.
But/CC
we/PRP
do/VBP
n't/RB
minimize/VB
the/DT
challenges/NNS
of/IN
the/DT
near/JJ
term/NN
./.
''/''
Securities/NNS
analysts/NNS
were/VBD
even/RB
more/RBR
cautious/JJ
,/,
having/VBG
been/VBN
burned/VBN
repeatedly/RB
on/IN
Unisys/NNP
this/DT
year/NN
./.
Some/DT
had/VBD
predicted/VBN
earnings/NNS
of/IN
more/JJR
than/IN
$/$
4/CD
a/DT
share/NN
for/IN
this/DT
year/NN
,/,
up/IN
from/IN
last/JJ
year/NN
's/POS
fully/RB
diluted/VBN
$/$
3.27/CD
a/DT
share/NN
on/IN
earnings/NNS
of/IN
$/$
680.6/CD
million/CD
./.
But/CC
the/DT
company/NN
said/VBD
Friday/NNP
that/IN
it/PRP
had/VBD
losses/NNS
of/IN
$/$
673.3/CD
million/CD
through/IN
the/DT
first/JJ
nine/CD
months/NNS
,/,
compared/VBN
with/IN
earnings/NNS
a/DT
year/NN
earlier/RBR
of/IN
$/$
382.2/CD
million/CD
,/,
or/CC
$/$
2.22/CD
a/DT
share/NN
fully/RB
diluted/VBN
,/,
as/IN
revenue/NN
inched/VBD
up/RB
1.4/CD
%/NN
to/TO
$/$
7.13/CD
billion/CD
from/IN
$/$
7.03/CD
billion/CD
./.
And/CC
Unisys/NNP
is/VBZ
expected/VBN
to/TO
do/VB
little/RB
better/RB
than/IN
break/VB
even/JJ
in/IN
the/DT
fourth/JJ
quarter/NN
./.
So/IN
Steve/NNP
Milunovich/NNP
at/IN
First/NNP
Boston/NNP
said/VBD
he/PRP
is/VBZ
cutting/VBG
his/PRP$
earnings/NNS
estimate/NN
for/IN
next/JJ
year/NN
to/TO
$/$
2/CD
a/DT
share/NN
from/IN
$/$
3/CD
./.
``/``
I/PRP
was/VBD
feeling/VBG
like/IN
I/PRP
was/VBD
too/RB
high/JJ
to/TO
begin/VB
with/IN
,/,
''/''
he/PRP
said/VBD
./.
Mr./NNP
Weil/NNP
of/IN
Weil/NNP
&/CC
Associates/NNPS
said/VBD
he/PRP
will/MD
remain/VB
at/IN
$/$
1/CD
a/DT
share/NN
for/IN
next/JJ
year/NN
but/CC
said/VBD
he/PRP
wonders/VBZ
whether/IN
even/RB
that/IN
low/JJ
target/NN
is/VBZ
at/IN
risk/NN
./.
``/``
The/DT
break-even/JJ
point/NN
for/IN
next/JJ
year/NN
is/VBZ
much/RB
lower/JJR
,/,
but/CC
is/VBZ
it/PRP
low/JJ
enough/RB
?/.
''/''
he/PRP
asked/VBD
./.
Reflecting/VBG
the/DT
concern/NN
,/,
Unisys/NNP
stock/NN
fell/VBD
a/DT
further/JJ
75/CD
cents/NNS
to/TO
$/$
16.25/CD
in/IN
composite/JJ
trading/NN
Friday/NNP
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
If/IN
a/DT
TV/NN
weatherman/NN
gets/VBZ
butterflies/NNS
facing/VBG
the/DT
camera/NN
again/RB
after/IN
a/DT
questionable/JJ
forecast/NN
,/,
Donald/NNP
H./NNP
Straszheim/NNP
surely/RB
understands/VBZ
./.
The/DT
chief/NN
economist/NN
of/IN
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
finds/VBZ
himself/PRP
in/IN
such/PDT
a/DT
position/NN
as/IN
he/PRP
buzzes/VBZ
the/DT
Midwest/NN
on/IN
his/PRP$
first/JJ
road/NN
trip/NN
since/IN
backpedaling/VBG
on/IN
a/DT
major/JJ
prediction/NN
./.
Mr./NNP
Straszheim/NNP
expects/VBZ
he/PRP
will/MD
take/VB
some/DT
heat/NN
,/,
and/CC
he/PRP
's/VBZ
right/JJ
./.
Since/IN
the/DT
last/JJ
time/NN
he/PRP
traveled/VBD
this/DT
way/NN
several/JJ
months/NNS
ago/IN
,/,
he/PRP
has/VBZ
recanted/VBN
a/DT
series/NN
of/IN
bold/JJ
forecasts/NNS
of/IN
a/DT
recession/NN
./.
In/IN
February/NNP
1988/CD
,/,
for/IN
example/NN
,/,
Merrill/NNP
Lynch/NNP
's/POS
weekly/JJ
commentary/NN
announced/VBD
that/IN
``/``
the/DT
economy/NN
is/VBZ
likely/JJ
to/TO
fall/VB
into/IN
recession/NN
in/IN
early/JJ
1989/CD
./.
''/''
The/DT
forecasts/NNS
were/VBD
widely/RB
disseminated/VBN
,/,
and/CC
,/,
in/IN
a/DT
splashy/JJ
ad/NN
campaign/NN
launched/VBN
in/IN
the/DT
summer/NN
of/IN
1988/CD
,/,
Merrill/NNP
Lynch/NNP
urged/VBD
investors/NNS
to/TO
buy/VB
bonds/NNS
./.
It/PRP
said/VBD
long-term/JJ
interest/NN
rates/NNS
,/,
then/RB
above/IN
9/CD
%/NN
,/,
could/MD
drop/VB
to/TO
7/CD
%/NN
by/IN
the/DT
end/NN
of/IN
1989/CD
,/,
so/IN
bonds/NNS
,/,
which/WDT
benefit/VBP
from/IN
falling/VBG
rates/NNS
,/,
would/MD
be/VB
a/DT
good/JJ
buy/NN
./.
The/DT
firm/NN
also/RB
raised/VBD
the/DT
percentage/NN
of/IN
bonds/NNS
in/IN
its/PRP$
model/NN
portfolio/NN
from/IN
40/CD
%/NN
to/TO
45/CD
%/NN
and/CC
later/RB
to/TO
55/CD
%/NN
./.
But/CC
this/DT
September/NNP
--/:
just/RB
when/WRB
many/JJ
market/NN
economists/NNS
,/,
including/VBG
some/DT
at/IN
Merrill/NNP
Lynch/NNP
,/,
believed/VBD
that/IN
Mr./NNP
Straszheim/NNP
was/VBD
about/IN
to/TO
be/VB
proved/VBN
right/RB
--/:
he/PRP
took/VBD
a/DT
detour/NN
if/IN
not/RB
a/DT
U-turn/NN
./.
He/PRP
softened/VBD
the/DT
talk/NN
about/IN
a/DT
recession/NN
./.
Now/RB
,/,
in/IN
fact/NN
,/,
he/PRP
is/VBZ
predicting/VBG
economic/JJ
growth/NN
of/IN
2.9/CD
%/NN
this/DT
year/NN
and/CC
2.1/CD
%/NN
next/JJ
year/NN
,/,
a/DT
more/RBR
optimistic/JJ
outlook/NN
than/IN
the/DT
consensus/NN
of/IN
some/DT
four/CD
dozen/NN
top/NN
forecasters/NNS
surveyed/VBN
by/IN
Blue/NNP
Chip/NNP
Economic/NNP
Indicators/NNPS
newsletter/NN
./.
And/CC
,/,
just/RB
recently/RB
,/,
Merrill/NNP
Lynch/NNP
cut/VBD
the/DT
recommended/VBN
bondholdings/NNS
back/RB
to/TO
50/CD
%/NN
./.
While/IN
such/JJ
changes/NNS
might/MD
sound/VB
minor/JJ
,/,
they/PRP
are/VBP
n't/RB
:/:
Merrill/NNP
Lynch/NNP
manages/VBZ
or/CC
oversees/VBZ
some/DT
$/$
300/CD
billion/CD
in/IN
retail/JJ
accounts/NNS
that/WDT
include/VBP
everything/NN
from/IN
mutual/JJ
funds/NNS
to/TO
individual/JJ
annuities/NNS
./.
Two/CD
well-known/JJ
colleagues/NNS
who/WP
believe/VBP
Mr./NNP
Straszheim/NNP
was/VBD
right/RB
the/DT
first/JJ
time/NN
are/VBP
David/NNP
Bostian/NNP
Jr./NNP
and/CC
A./NNP
Gary/NNP
Shilling/NNP
,/,
both/DT
of/IN
whom/WP
run/VBP
their/PRP$
own/JJ
New/NNP
York/NNP
research/NN
firms/NNS
./.
Mr./NNP
Bostian/NNP
said/VBD
in/IN
August/NNP
that/IN
his/PRP$
macroeconomic/JJ
index/NN
signaled/VBD
recession/NN
./.
Mr./NNP
Shilling/NNP
,/,
who/WP
was/VBD
Merrill/NNP
Lynch/NNP
's/POS
chief/NN
economist/NN
from/IN
1967/CD
to/TO
1971/CD
,/,
has/VBZ
heralded/VBN
a/DT
recession/NN
for/IN
months/NNS
./.
``/``
My/PRP$
own/JJ
personal/JJ
opinion/NN
is/VBZ
that/IN
Don/NNP
threw/VBD
in/IN
the/DT
towel/NN
just/RB
about/IN
the/DT
time/NN
he/PRP
should/MD
have/VB
doubled/VBN
his/PRP$
bet/NN
,/,
''/''
he/PRP
says/VBZ
./.
Now/RB
a/DT
rocky/JJ
stock/NN
market/NN
and/CC
weak/JJ
corporate/JJ
profits/NNS
may/MD
further/RB
threaten/VB
the/DT
economy/NN
./.
And/CC
Mr./NNP
Straszheim/NNP
conceded/VBD
after/IN
a/DT
recent/JJ
drop/NN
in/IN
manufacturing/VBG
jobs/NNS
that/IN
``/``
it/PRP
may/MD
prove/VB
to/TO
be/VB
the/DT
case/NN
that/IN
we/PRP
got/VBD
whipsawed/VBN
--/:
that/IN
we/PRP
pulled/VBD
the/DT
recession/NN
forecast/NN
at/IN
just/RB
the/DT
wrong/JJ
time/NN
./.
''/''
He/PRP
adds/VBZ
,/,
``/``
That/DT
's/VBZ
the/DT
forecasting/NN
business/NN
./.
''/''
However/WRB
risky/JJ
the/DT
business/NN
,/,
it/PRP
's/VBZ
brisk/JJ
these/DT
days/NNS
./.
Pestered/VBN
by/IN
bosses/NNS
,/,
brokers/NNS
,/,
clients/NNS
and/CC
media/NNS
people/NNS
and/CC
pushed/VBN
by/IN
their/PRP$
own/JJ
egos/NNS
,/,
Wall/NNP
Street/NNP
economists/NNS
are/VBP
forecasting/VBG
about/IN
everything/NN
from/IN
broad/JJ
economic/JJ
trends/NNS
to/TO
the/DT
dinkiest/JJS
monthly/JJ
indicator/NN
./.
But/CC
the/DT
surprisingly/RB
durable/JJ
seven-year/JJ
economic/JJ
expansion/NN
has/VBZ
made/VBN
mincemeat/NN
of/IN
more/JJR
than/IN
one/CD
forecast/NN
./.
This/DT
is/VBZ
n't/RB
the/DT
quiet/JJ
economic/JJ
science/NN
practiced/VBN
in/IN
the/DT
universities/NNS
./.
This/DT
is/VBZ
the/DT
commercial/JJ
version/NN
./.
Carrying/VBG
the/DT
new/JJ
message/NN
on/IN
the/DT
road/NN
,/,
Mr./NNP
Straszheim/NNP
meets/VBZ
confrontation/NN
that/WDT
often/RB
occurs/VBZ
in/IN
inverse/JJ
proportion/NN
to/TO
the/DT
size/NN
of/IN
the/DT
client/NN
./.
No/DT
sophisticated/JJ
professional/NN
expects/VBZ
economists/NNS
to/TO
be/VB
right/RB
all/PDT
the/DT
time/NN
./.
Some/DT
smaller/JJR
clients/NNS
do/VBP
n't/RB
seem/VB
to/TO
notice/VB
his/PRP$
switch/NN
./.
But/CC
with/IN
some/DT
clients/NNS
,/,
the/DT
talk/NN
can/MD
heat/VB
up/IN
a/DT
bit/NN
./.
Dennis/NNP
O'Brien/NNP
,/,
the/DT
treasurer/NN
of/IN
Commonwealth/NNP
Edison/NNP
Co./NNP
in/IN
Chicago/NNP
,/,
adopts/VBZ
a/DT
polite/JJ
approach/NN
,/,
waiting/VBG
for/IN
an/DT
opportunity/NN
to/TO
ask/VB
about/IN
the/DT
forecast/NN
./.
A/DT
good/JJ
half-hour/NN
into/IN
breakfast/NN
at/IN
the/DT
Palmer/NNP
House/NNP
,/,
Mr./NNP
O'Brien/NNP
looks/VBZ
up/IN
from/IN
his/PRP$
plate/NN
after/IN
Mr./NNP
Straszheim/NNP
says/VBZ
something/NN
about/IN
people/NNS
who/WP
believe/VBP
interest/NN
rates/NNS
are/VBP
about/IN
to/TO
nosedive/JJ
./.
``/``
I/PRP
'm/VBP
one/CD
of/IN
them/PRP
who/WP
hope/VBP
they/PRP
will/MD
,/,
with/IN
$/$
6/CD
billion/CD
in/IN
debt/NN
on/IN
the/DT
books/NNS
./.
Is/VBZ
that/IN
the/DT
forecast/NN
?/.
''/''
Mr./NNP
O'Brien/NNP
asks/VBZ
,/,
trying/VBG
to/TO
pin/VB
down/RP
the/DT
economist/NN
./.
He/PRP
does/VBZ
n't/RB
fully/RB
succeed/VB
,/,
although/IN
Mr./NNP
Straszheim/NNP
lists/VBZ
an/DT
array/NN
of/IN
interest-rate/NN
scenarios/NNS
./.
In/IN
a/DT
chilly/JJ
conference/NN
room/NN
at/IN
Alliance/NNP
Capital/NNP
Management/NNP
in/IN
Minneapolis/NNP
,/,
in/IN
contrast/NN
,/,
the/DT
firm/NN
's/POS
money/NN
managers/NNS
seem/VBP
ready/JJ
to/TO
pin/VB
Mr./NNP
Straszheim/NNP
to/TO
the/DT
wall/NN
./.
Alfred/NNP
Harrison/NNP
,/,
the/DT
manager/NN
,/,
shoves/VBZ
Mr./NNP
Straszheim/NNP
's/POS
handout/NN
back/RB
at/IN
him/PRP
:/:
``/``
Do/VBP
we/PRP
want/VB
to/TO
go/VB
through/IN
this/DT
?/.
Or/CC
can/MD
we/PRP
ask/VB
you/PRP
why/WRB
you/PRP
changed/VBD
your/PRP$
forecast/NN
just/RB
when/WRB
it/PRP
's/VBZ
about/IN
to/TO
be/VB
right/JJ
?/.
''/''
Swiveling/VBG
in/IN
his/PRP$
chair/NN
,/,
Mr./NNP
Straszheim/NNP
replies/VBZ
that/IN
the/DT
new/JJ
outlook/NN
,/,
though/IN
still/RB
weak/JJ
,/,
does/VBZ
n't/RB
justify/VB
calling/VBG
a/DT
recession/NN
right/RB
now/RB
./.
``/``
It/PRP
's/VBZ
all/DT
in/IN
this/DT
handout/NN
you/PRP
do/VBP
n't/RB
want/VB
to/TO
look/VB
at/IN
./.
We/PRP
could/MD
still/RB
have/VB
a/DT
recession/NN
''/''
at/IN
some/DT
point/NN
./.
One/CD
of/IN
Mr./NNP
Straszheim/NNP
's/POS
recurring/VBG
themes/NNS
is/VBZ
that/IN
the/DT
state/NN
of/IN
the/DT
economy/NN
is/VBZ
n't/RB
a/DT
simple/JJ
black/JJ
or/CC
white/JJ
./.
Sometimes/RB
,/,
like/IN
now/RB
,/,
it/PRP
's/VBZ
gray/JJ
./.
This/DT
somewhat-ambiguous/JJ
assessment/NN
moves/VBZ
one/CD
Alliance/NNP
portfolio/NN
manager/NN
to/TO
ask/VB
:/:
``/``
So/RB
,/,
what/WP
is/VBZ
this/DT
--/:
a/DT
Stealth/NNP
recession/NN
?/.
''/''
Another/DT
challenges/VBZ
Merrill/NNP
Lynch/NNP
's/POS
bond/NN
recommendation/NN
last/JJ
year/NN
./.
``/``
We/PRP
're/VBP
not/RB
running/VBG
that/DT
ad/NN
campaign/NN
any/DT
more/JJR
,/,
''/''
Mr./NNP
Straszheim/NNP
snaps/VBZ
in/IN
a/DT
rare/JJ
show/NN
of/IN
irritation/NN
./.
He/PRP
adds/VBZ
,/,
``/``
I/PRP
think/VBP
it/PRP
was/VBD
a/DT
fairly/RB
decent/JJ
call/NN
./.
''/''
Explaining/VBG
his/PRP$
change/NN
of/IN
mind/NN
,/,
Mr./NNP
Straszheim/NNP
says/VBZ
later/RB
,/,
``/``
It/PRP
's/VBZ
hard/JJ
to/TO
pin/VB
this/DT
on/IN
one/CD
factor/NN
./.
''/''
He/PRP
says/VBZ
the/DT
economy/NN
,/,
and/CC
especially/RB
the/DT
employment/NN
numbers/NNS
,/,
look/VBP
much/RB
better/RB
than/IN
he/PRP
expected/VBD
;/:
interest/NN
rates/NNS
have/VBP
generally/RB
declined/VBN
;/:
inflation/NN
has/VBZ
n't/RB
run/VB
amok/RB
./.
``/``
Our/PRP$
business/NN
is/VBZ
constantly/RB
looking/VBG
at/IN
all/PDT
these/DT
things/NNS
,/,
''/''
he/PRP
says/VBZ
./.
His/PRP$
new/JJ
forecast/NN
calls/VBZ
for/IN
``/``
a/DT
soft/JJ
landing/NN
./.
''/''
And/CC
it/PRP
may/MD
be/VB
right/JJ
,/,
judging/VBG
from/IN
last/JJ
week/NN
's/POS
report/NN
that/IN
inflation-adjusted/JJ
gross/JJ
national/JJ
product/NN
rose/VBD
at/IN
a/DT
2.5/CD
%/NN
annual/JJ
rate/NN
in/IN
the/DT
third/JJ
quarter/NN
./.
Mr./NNP
Shilling/NNP
understands/VBZ
Mr./NNP
Straszheim/NNP
's/POS
problems/NNS
./.
``/``
There/EX
's/VBZ
unbelievable/JJ
pressure/NN
on/IN
economists/NNS
to/TO
forecast/VB
these/DT
numbers/NNS
,/,
''/''
he/PRP
says/VBZ
./.
``/``
You/PRP
make/VBP
a/DT
forecast/NN
,/,
and/CC
then/RB
you/PRP
become/VBP
its/PRP$
prisoner/NN
./.
''/''
It/PRP
is/VBZ
indeed/RB
hard/JJ
to/TO
back/VB
away/RB
from/IN
a/DT
widely/RB
publicized/VBN
forecast/NN
,/,
and/CC
Mr./NNP
Straszheim/NNP
is/VBZ
fidgeting/VBG
with/IN
the/DT
handcuffs/NNS
on/IN
this/DT
trip/NN
./.
His/PRP$
approach/NN
to/TO
the/DT
recantation/NN
is/VBZ
direct/JJ
but/CC
low-key/JJ
./.
``/``
For/IN
some/DT
time/NN
,/,
we/PRP
had/VBD
forecast/VBN
negative/JJ
third/JJ
fourth-quarter/NN
growth/NN
./.
We/PRP
pulled/VBD
that/DT
forecast/NN
,/,
''/''
he/PRP
begins/VBZ
matter-of-factly/RB
in/IN
a/DT
meeting/NN
with/IN
Piper/NNP
,/,
Jaffray/NNP
&/CC
Hopwood/NNP
Inc./NNP
officials/NNS
in/IN
Minneapolis/NNP
,/,
the/DT
first/JJ
stop/NN
./.
Crane/NNP
Co./NNP
said/VBD
it/PRP
holds/VBZ
an/DT
8.9/CD
%/NN
stake/NN
in/IN
Milton/NNP
Roy/NNP
Corp./NNP
,/,
an/DT
analytical-instruments/JJ
maker/NN
,/,
and/CC
may/MD
seek/VB
control/NN
of/IN
the/DT
company/NN
./.
Crane/NNP
,/,
a/DT
maker/NN
of/IN
engineered/VBN
products/NNS
for/IN
aerospace/NN
,/,
construction/NN
,/,
defense/NN
and/CC
other/JJ
uses/NNS
,/,
made/VBD
the/DT
disclosure/NN
in/IN
a/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
filing/NN
./.
In/IN
the/DT
filing/NN
,/,
Crane/NNP
said/VBD
that/IN
in/IN
the/DT
past/NN
it/PRP
considered/VBD
seeking/VBG
control/NN
of/IN
Milton/NNP
Roy/NNP
,/,
of/IN
St./NNP
Petersburg/NNP
,/,
Fla./NNP
,/,
through/IN
a/DT
merger/NN
or/CC
tender/NN
offer/NN
and/CC
that/IN
it/PRP
expects/VBZ
to/TO
continue/VB
to/TO
evaluate/VB
an/DT
acquisition/NN
from/IN
time/NN
to/TO
time/NN
./.
Crane/NNP
officials/NNS
did/VBD
n't/RB
return/VB
phone/NN
calls/NNS
seeking/VBG
comment/NN
./.
Crane/NNP
holds/VBZ
504,200/CD
Milton/NNP
Roy/NNP
shares/NNS
,/,
including/VBG
254,200/CD
bought/VBD
from/IN
Sept./NNP
14/CD
to/TO
Thursday/NNP
for/IN
$/$
15.50/CD
to/TO
$/$
16.75/CD
each/DT
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
Friday/NNP
,/,
Milton/NNP
Roy/NNP
shares/NNS
leaped/VBD
$/$
2/CD
,/,
to/TO
$/$
18.375/CD
each/DT
,/,
while/IN
Crane/NNP
sank/VBD
$/$
1.125/CD
,/,
to/TO
$/$
21.125/CD
a/DT
share/NN
./.
John/NNP
M./NNP
McNamara/NNP
,/,
chief/NN
financial/JJ
officer/NN
of/IN
Milton/NNP
Roy/NNP
,/,
said/VBD
the/DT
company/NN
has/VBZ
no/DT
comment/NN
on/IN
Crane/NNP
's/POS
filing/NN
./.
Milton/NNP
Roy/NNP
recently/RB
fended/VBD
off/IN
unsolicited/JJ
overtures/NNS
from/IN
Thermo/NNP
Electron/NNP
Corp./NNP
,/,
a/DT
Waltham/NNP
,/,
Mass./NNP
,/,
maker/NN
of/IN
biomedical/JJ
products/NNS
./.
Milton/NNP
Roy/NNP
disclosed/VBD
in/IN
May/NNP
that/IN
it/PRP
was/VBD
approached/VBN
for/IN
a/DT
possible/JJ
acquisition/NN
by/IN
Thermo/NNP
Electron/NNP
,/,
which/WDT
agreed/VBD
to/TO
purchase/VB
Milton/NNP
Roy/NNP
's/POS
liquid-chromatography/NN
line/NN
for/IN
$/$
22/CD
million/CD
in/IN
February/NNP
./.
Thermo/NNP
Electron/NNP
acquired/VBD
some/DT
6/CD
%/NN
of/IN
Milton/NNP
Roy/NNP
's/POS
common/JJ
stock/NN
before/IN
throwing/VBG
in/IN
the/DT
towel/NN
and/CC
reducing/VBG
its/PRP$
stake/NN
in/IN
early/JJ
September/NNP
./.
Gabelli/NNP
Group/NNP
began/VBD
raising/VBG
its/PRP$
Milton/NNP
Roy/NNP
stake/NN
in/IN
July/NNP
,/,
and/CC
holds/VBZ
14.6/CD
%/NN
,/,
according/VBG
to/TO
a/DT
recent/JJ
SEC/NNP
filing/NN
./.
It/PRP
has/VBZ
n't/RB
made/VBN
merger/NN
overtures/NNS
to/TO
the/DT
board/NN
./.
Earlier/RBR
this/DT
month/NN
,/,
Milton/NNP
Roy/NNP
signed/VBD
a/DT
letter/NN
of/IN
intent/NN
to/TO
acquire/VB
Automated/NNP
Custom/NNP
Systems/NNPS
Inc./NNP
,/,
Orange/NNP
,/,
Calif./NNP
,/,
and/CC
its/PRP$
sister/NN
operation/NN
,/,
Environmental/NNP
Testing/NNP
Co./NNP
,/,
in/IN
Aurora/NNP
,/,
Colo/NNP
./.
The/DT
companies/NNS
are/VBP
automotive-emissions-testing/JJ
concerns/NNS
./.
Under/IN
the/DT
terms/NNS
,/,
Milton/NNP
Roy/NNP
will/MD
pay/VB
an/DT
initial/JJ
$/$
4/CD
million/CD
for/IN
the/DT
operations/NNS
and/CC
additional/JJ
payments/NNS
during/IN
the/DT
next/JJ
four/CD
years/NNS
based/VBN
on/IN
the/DT
earnings/NNS
performance/NN
of/IN
the/DT
businesses/NNS
./.
In/IN
the/DT
nine/CD
months/NNS
,/,
Milton/NNP
Roy/NNP
earned/VBD
$/$
6.6/CD
million/CD
,/,
or/CC
$/$
1.18/CD
a/DT
share/NN
,/,
on/IN
sales/NNS
of/IN
$/$
94.3/CD
million/CD
./.
Last/JJ
week/NN
the/DT
British/NNPS
displayed/VBD
unusual/JJ
political/JJ
immaturity/NN
./.
The/DT
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
,/,
Nigel/NNP
Lawson/NNP
,/,
resigned/VBD
because/IN
Prime/NNP
Minister/NNP
Thatcher/NNP
would/MD
not/RB
fire/VB
her/PRP
trusted/VBN
adviser/NN
Sir/NNP
Alan/NNP
Walters/NNP
./.
The/DT
opposition/NN
Labor/NNP
Party/NNP
leader/NN
,/,
Neil/NNP
Kinnock/NNP
,/,
in/IN
a/DT
display/NN
of/IN
the/DT
male/JJ
chauvinism/NN
typical/JJ
of/IN
the/DT
British/JJ
lower/JJR
class/NN
,/,
denounced/VBD
Mrs./NNP
Thatcher/NNP
for/IN
having/VBG
an/DT
independent/JJ
mind/NN
and/CC
refusing/VBG
to/TO
heed/VB
the/DT
men/NNS
in/IN
her/PRP$
Cabinet/NNP
./.
The/DT
British/JJ
press/NN
,/,
making/VBG
a/DT
mountain/NN
out/IN
of/IN
a/DT
molehill/NN
,/,
precipitated/VBD
an/DT
unnecessary/JJ
economic/JJ
crisis/NN
by/IN
portraying/VBG
Mrs./NNP
Thatcher/NNP
as/IN
an/DT
autocrat/NN
who/WP
had/VBD
thrown/VBN
economic/JJ
policy/NN
into/IN
confusion/NN
by/IN
driving/VBG
a/DT
respected/VBN
figure/NN
from/IN
her/PRP$
government/NN
./.
Behind/IN
the/DT
silly/JJ
posturing/NN
lies/VBZ
a/DT
real/JJ
dispute/NN
./.
Mr./NNP
Lawson/NNP
and/CC
his/PRP$
European-minded/JJ
colleagues/NNS
want/VBP
the/DT
British/JJ
pound/NN
formally/RB
tied/VBN
to/TO
the/DT
West/JJ
German/JJ
mark/NN
./.
Sir/NNP
Alan/NNP
considers/VBZ
this/DT
an/DT
ill-advised/JJ
and/CC
costly/JJ
policy/NN
./.
As/IN
there/EX
is/VBZ
an/DT
effort/NN
to/TO
``/``
anchor/VB
the/DT
dollar/NN
''/''
either/CC
to/TO
gold/NN
or/CC
other/JJ
currencies/NNS
,/,
the/DT
dispute/NN
is/VBZ
worth/JJ
examining/VBG
./.
Until/IN
his/PRP$
resignation/NN
,/,
Mr./NNP
Lawson/NNP
had/VBD
been/VBN
conducting/VBG
British/JJ
monetary/JJ
policy/NN
as/IN
if/IN
the/DT
pound/NN
were/VBD
tied/VBN
to/TO
the/DT
mark/NN
./.
When/WRB
Mrs./NNP
Thatcher/NNP
cut/VBD
the/DT
top/JJ
tax/NN
rate/NN
to/TO
40/CD
%/NN
,/,
Mr./NNP
Lawson/NNP
flooded/VBD
the/DT
country/NN
with/IN
money/NN
to/TO
prevent/VB
the/DT
pound/NN
from/IN
rising/VBG
against/IN
the/DT
mark/NN
./.
As/IN
a/DT
result/NN
,/,
he/PRP
reignited/VBD
the/DT
inflation/NN
that/IN
Mrs./NNP
Thatcher/NNP
,/,
through/IN
a/DT
long/JJ
and/CC
costly/JJ
effort/NN
,/,
had/VBD
subdued/VBN
./.
With/IN
inflation/NN
surging/VBG
,/,
the/DT
pound/NN
began/VBD
falling/VBG
against/IN
the/DT
mark/NN
./.
To/TO
keep/VB
the/DT
exchange/NN
rate/NN
pegged/VBD
,/,
Mr./NNP
Lawson/NNP
tightened/VBD
monetary/JJ
policy/NN
and/CC
pushed/VBD
interest/NN
rates/NNS
up/RB
to/TO
15/CD
%/NN
./.
This/DT
doubled/VBD
the/DT
mortgage/NN
interest/NN
rates/NNS
of/IN
the/DT
many/JJ
new/JJ
homeowners/NNS
that/IN
Mrs./NNP
Thatcher/NNP
's/POS
policies/NNS
had/VBD
created/VBN
,/,
producing/VBG
widespread/JJ
disaffection/NN
and/CC
pushing/VBG
Labor/NN
ahead/RB
in/IN
the/DT
polls/NNS
./.
Instead/RB
of/IN
realizing/VBG
his/PRP$
mistake/NN
in/IN
letting/VBG
the/DT
exchange/NN
rate/NN
dominate/VB
both/DT
British/JJ
economic/JJ
policy/NN
and/CC
Mrs./NNP
Thatcher/NNP
's/POS
political/JJ
fortune/NN
,/,
Mr./NNP
Lawson/NNP
pushed/VBD
for/IN
tying/VBG
the/DT
pound/NN
formally/RB
to/TO
the/DT
mark/NN
by/IN
entering/VBG
the/DT
European/NNP
Monetary/NNP
System/NNP
,/,
which/WDT
subordinates/VBZ
all/DT
member/NN
currencies/NNS
to/TO
German/JJ
monetary/JJ
policy/NN
./.
This/DT
put/VBD
Mrs./NNP
Thatcher/NNP
in/IN
a/DT
bind/NN
./.
The/DT
concept/NN
of/IN
European/JJ
integration/NN
is/VBZ
one/CD
of/IN
those/DT
grand/JJ
schemes/NNS
that/WDT
appeal/VBP
to/TO
intellectuals/NNS
,/,
the/DT
media/NNS
and/CC
the/DT
imagination/NN
,/,
but/CC
are/VBP
full/JJ
of/IN
practical/JJ
pitfalls/NNS
./.
If/IN
the/DT
pound/NN
had/VBD
been/VBN
tied/VBN
to/TO
the/DT
mark/NN
,/,
the/DT
British/NNPS
would/MD
have/VB
been/VBN
unable/JJ
to/TO
cut/VB
their/PRP$
exorbitant/JJ
tax/NN
rates/NNS
./.
The/DT
reason/NN
is/VBZ
simple/JJ
./.
When/WRB
a/DT
country/NN
cuts/VBZ
tax/NN
rates/NNS
,/,
it/PRP
makes/VBZ
itself/PRP
more/RBR
attractive/JJ
to/TO
investors/NNS
and/CC
drives/VBZ
up/RP
the/DT
value/NN
of/IN
its/PRP$
currency/NN
./.
It/PRP
was/VBD
fear/NN
of/IN
disturbing/VBG
EMS/NNP
exchange-rate/JJ
relationships/NNS
that/WDT
caused/VBD
the/DT
Chirac/NNP
government/NN
in/IN
France/NNP
to/TO
be/VB
timid/JJ
about/IN
cutting/VBG
tax/NN
rates/NNS
./.
Edouard/NNP
Balladur/NNP
,/,
the/DT
finance/NN
minister/NN
at/IN
the/DT
time/NN
,/,
was/VBD
sold/VBN
on/IN
the/DT
tax-cut/JJ
policy/NN
but/CC
was/VBD
concerned/VBN
that/IN
his/PRP$
government/NN
would/MD
be/VB
criticized/VBN
as/IN
anti-European/JJ
for/IN
disturbing/VBG
the/DT
linked/VBN
European/JJ
currency/NN
relationship/NN
./.
The/DT
price/NN
of/IN
attracting/VBG
capital/NN
--/:
whether/IN
one/NN
's/POS
own/JJ
or/CC
that/IN
of/IN
foreigners/NNS
--/:
is/VBZ
a/DT
trade/NN
deficit/NN
./.
To/TO
avoid/VB
this/DT
deficit/NN
Mr./NNP
Lawson/NNP
inflated/VBD
the/DT
pound/NN
in/IN
order/NN
to/TO
prevent/VB
its/PRP$
rise/NN
./.
This/DT
misguided/JJ
policy/NN
could/MD
not/RB
prevent/VB
a/DT
British/JJ
trade/NN
deficit/NN
./.
Consequently/RB
,/,
Mr./NNP
Lawson/NNP
saddled/VBD
Mrs./NNP
Thatcher/NNP
with/IN
a/DT
record/NN
trade/NN
deficit/NN
,/,
renewed/VBN
inflation/NN
and/CC
high/JJ
interest/NN
rates/NNS
--/:
three/CD
political/JJ
failures/NNS
in/IN
a/DT
row/NN
./.
Little/JJ
wonder/NN
that/IN
Mrs./NNP
Thatcher/NNP
's/POS
opponents/NNS
were/VBD
so/RB
anxious/JJ
to/TO
keep/VB
Mr./NNP
Lawson/NNP
in/IN
office/NN
./.
It/PRP
is/VBZ
extraordinary/JJ
that/IN
the/DT
British/NNP
Treasury/NNP
thought/VBD
it/PRP
could/MD
prevent/VB
a/DT
trade/NN
deficit/NN
by/IN
inflating/VBG
the/DT
pound/NN
./.
The/DT
British/JJ
balance-of-payments/NNS
statistics/NNS
show/VBP
that/IN
after/IN
the/DT
top/JJ
tax/NN
rate/NN
was/VBD
cut/VBN
to/TO
40/CD
%/NN
,/,
the/DT
flow/NN
abroad/RB
of/IN
British/JJ
capital/NN
slowed/VBD
,/,
to/TO
50/CD
billion/CD
pounds/NNS
$/$
79/CD
billion/CD
at/IN
the/DT
current/JJ
rate/NN
1988/CD
from/IN
93/CD
billion/CD
pounds/NNS
in/IN
1986/CD
./.
This/DT
change/NN
in/IN
the/DT
British/JJ
capital/NN
account/NN
required/VBD
an/DT
offsetting/VBG
change/NN
in/IN
the/DT
trade/NN
account/NN
,/,
a/DT
change/NN
that/WDT
could/MD
not/RB
be/VB
prevented/VBN
by/IN
pegging/VBG
the/DT
currency/NN
./.
Nigel/NNP
Lawson/NNP
was/VBD
a/DT
victim/NN
of/IN
the/DT
immense/JJ
confusion/NN
in/IN
thought/NN
that/WDT
has/VBZ
been/VBN
characteristic/JJ
of/IN
Western/JJ
financial/JJ
circles/NNS
during/IN
the/DT
1980s/CD
./.
The/DT
most/RBS
important/JJ
governments/NNS
have/VBP
ignored/VBN
the/DT
role/NN
of/IN
low/JJ
tax/NN
rates/NNS
in/IN
attracting/VBG
real/JJ
capital/NN
investment/NN
,/,
instead/RB
emphasizing/VBG
financial/JJ
flows/NNS
in/IN
response/NN
to/TO
high/JJ
interest/NN
rates/NNS
./.
This/DT
has/VBZ
led/VBN
them/PRP
in/IN
a/DT
fruitless/JJ
and/CC
destructive/JJ
policy/NN
circle/NN
./.
First/RB
comes/VBZ
monetary/JJ
expansion/NN
to/TO
drive/VB
down/IN
the/DT
currency/NN
's/POS
value/NN
that/WDT
was/VBD
pushed/VBN
up/IN
by/IN
tax-rate/JJ
reduction/NN
./.
Then/RB
,/,
when/WRB
the/DT
currency/NN
falls/VBZ
,/,
interest/NN
rates/NNS
are/VBP
raised/VBN
to/TO
attract/VB
financial/JJ
flows/NNS
in/IN
order/NN
to/TO
stabilize/VB
the/DT
exchange/NN
rate/NN
./.
This/DT
policy/NN
is/VBZ
totally/RB
mindless/JJ
,/,
and/CC
Sir/NNP
Alan/NNP
is/VBZ
correct/JJ
to/TO
point/VB
out/IN
its/PRP$
deficiencies/NNS
./.
Britain/NNP
and/CC
all/DT
of/IN
Europe/NNP
need/VBP
to/TO
reconsider/VB
the/DT
prospects/NNS
for/IN
European/JJ
integration/NN
in/IN
light/NN
of/IN
the/DT
possible/JJ
reunification/NN
and/CC
neutralization/NN
of/IN
Germany/NNP
./.
A/DT
unified/VBN
Germany/NNP
that/WDT
remained/VBD
within/IN
the/DT
Western/JJ
alliance/NN
would/MD
give/VB
Germany/NNP
such/PDT
an/DT
overshadowing/VBG
position/NN
that/IN
all/DT
other/JJ
members/NNS
of/IN
a/DT
unified/VBN
Europe/NNP
would/MD
become/VB
vassals/NNS
of/IN
the/DT
German/JJ
state/NN
./.
Unless/IN
the/DT
Soviet/NNP
Union/NNP
collapses/VBZ
,/,
German/JJ
reunification/NN
is/VBZ
likely/JJ
to/TO
require/VB
Germany/NNP
's/POS
neutralization/NN
./.
The/DT
implications/NNS
for/IN
Britain/NNP
,/,
France/NNP
and/CC
the/DT
rest/NN
of/IN
Europe/NNP
of/IN
having/VBG
their/PRP$
currencies/NNS
tied/VBN
to/TO
the/DT
economic/JJ
policy/NN
of/IN
a/DT
neutral/JJ
country/NN
need/VBP
considering/VBG
before/IN
we/PRP
judge/VBP
Mr./NNP
Lawson/NNP
's/POS
resignation/NN
to/TO
be/VB
unfortunate/JJ
./.
In/IN
the/DT
least/JJS
,/,
we/PRP
must/MD
recognize/VB
the/DT
futility/NN
of/IN
trying/VBG
to/TO
use/VB
exchange-rate/JJ
intervention/NN
to/TO
offset/VB
the/DT
effects/NNS
of/IN
tax-rate/JJ
reduction/NN
on/IN
capital/NN
flows/NNS
./.
Mr./NNP
Roberts/NNP
was/VBD
assistant/JJ
Treasury/NNP
secretary/NN
under/IN
President/NNP
Reagan/NNP
./.
Joseph/NNP
P./NNP
Jordan/NNP
,/,
52/CD
years/NNS
old/JJ
,/,
becomes/VBZ
president/NN
,/,
chief/NN
executive/NN
officer/NN
and/CC
a/DT
director/NN
of/IN
the/DT
bank/NN
company/NN
./.
Mr./NNP
Jordan/NNP
,/,
formerly/RB
president/NN
and/CC
chief/NN
executive/NN
of/IN
Fishkill/NNP
National/NNP
Bank/NNP
in/IN
Beacon/NNP
,/,
N.Y./NNP
,/,
succeeds/VBZ
Donald/NNP
Broderick/NNP
,/,
who/WP
died/VBD
at/IN
52/CD
in/IN
an/DT
automobile/NN
accident/NN
./.
Personal/JJ
spending/NN
,/,
which/WDT
fueled/VBD
the/DT
economy/NN
's/POS
growth/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
was/VBD
clearly/RB
slowing/VBG
by/IN
the/DT
end/NN
of/IN
the/DT
period/NN
,/,
raising/VBG
questions/NNS
about/IN
the/DT
economy/NN
's/POS
strength/NN
as/IN
the/DT
year/NN
ends/VBZ
./.
Personal/JJ
spending/NN
grew/VBD
0.2/CD
%/NN
in/IN
September/NNP
to/TO
a/DT
$/$
3.526/CD
trillion/CD
annual/JJ
rate/NN
,/,
the/DT
Commerce/NNP
Department/NNP
said/VBD
./.
It/PRP
was/VBD
the/DT
smallest/JJS
monthly/JJ
increase/NN
in/IN
a/DT
year/NN
./.
At/IN
the/DT
same/JJ
time/NN
,/,
personal/JJ
income/NN
was/VBD
held/VBN
down/IN
by/IN
the/DT
effects/NNS
of/IN
Hurricane/NNP
Hugo/NNP
,/,
which/WDT
tore/VBD
through/IN
parts/NNS
of/IN
North/NNP
and/CC
South/NNP
Carolina/NNP
in/IN
late/JJ
September/NNP
./.
The/DT
department/NN
said/VBD
personal/JJ
income/NN
rose/VBD
0.3/CD
%/NN
in/IN
September/NNP
to/TO
a/DT
$/$
4.469/CD
trillion/CD
rate/NN
but/CC
would/MD
have/VB
climbed/VBD
0.6/CD
%/NN
had/VBD
it/PRP
not/RB
been/VBN
for/IN
the/DT
storm/NN
./.
Among/IN
the/DT
economic/JJ
effects/NNS
of/IN
the/DT
hurricane/NN
was/VBD
a/DT
sharp/JJ
drop/NN
in/IN
rental/JJ
income/NN
./.
The/DT
figures/NNS
came/VBD
a/DT
day/NN
after/IN
the/DT
government/NN
released/VBD
a/DT
report/NN
showing/VBG
that/IN
consumer/NN
spending/NN
propelled/VBD
U.S./NNP
economic/JJ
expansion/NN
in/IN
the/DT
third/JJ
quarter/NN
while/IN
--/:
on/IN
an/DT
inflation-adjusted/JJ
basis/NN
--/:
business/NN
investment/NN
slowed/VBD
,/,
government/NN
spending/NN
declined/VBD
,/,
and/CC
exports/NNS
were/VBD
flat/JJ
./.
But/CC
the/DT
new/JJ
statistics/NNS
show/VBP
that/IN
by/IN
September/NNP
,/,
the/DT
burst/NN
in/IN
spending/NN
seemed/VBD
to/TO
be/VB
tapering/VBG
off/IN
./.
Many/JJ
economists/NNS
expect/VBP
the/DT
weakness/NN
to/TO
continue/VB
./.
``/``
I/PRP
think/VBP
the/DT
consumer/NN
has/VBZ
pretty/RB
well/RB
played/VBN
himself/PRP
out/IN
,/,
''/''
said/VBD
David/NNP
Littman/NNP
,/,
senior/JJ
economist/NN
at/IN
Manufacturers/NNPS
National/NNP
Bank/NNP
of/IN
Detroit/NNP
./.
``/``
I/PRP
do/VBP
n't/RB
think/VB
there/EX
's/VBZ
a/DT
lot/NN
in/IN
the/DT
wings/NNS
''/''
in/IN
other/JJ
sectors/NNS
of/IN
the/DT
economy/NN
to/TO
keep/VB
growth/NN
above/IN
1/CD
%/NN
,/,
he/PRP
said/VBD
./.
In/IN
the/DT
third/JJ
quarter/NN
,/,
the/DT
economy/NN
grew/VBD
at/IN
a/DT
moderate/JJ
2.5/CD
%/NN
annual/JJ
rate/NN
./.
In/IN
August/NNP
,/,
personal/JJ
income/NN
rose/VBD
0.3/CD
%/NN
and/CC
spending/NN
grew/VBD
0.9/CD
%/NN
./.
Analysts/NNS
have/VBP
attributed/VBN
much/JJ
of/IN
the/DT
summer/NN
's/POS
spurt/NN
in/IN
spending/VBG
to/TO
bargain/NN
car/NN
prices/NNS
at/IN
the/DT
end/NN
of/IN
the/DT
model/NN
year/NN
./.
Car/NN
sales/NNS
slackened/VBD
in/IN
September/NNP
after/IN
the/DT
1990/CD
models/NNS
were/VBD
introduced/VBN
./.
According/VBG
to/TO
the/DT
Commerce/NNP
Department/NNP
report/NN
,/,
spending/VBG
on/IN
durable/JJ
goods/NNS
--/:
items/NNS
expected/VBN
to/TO
last/VB
at/IN
least/JJS
three/CD
years/NNS
,/,
including/VBG
cars/NNS
--/:
declined/VBD
by/IN
$/$
6.2/CD
billion/CD
./.
The/DT
nation/NN
's/POS
savings/NN
rate/NN
was/VBD
unchanged/JJ
in/IN
September/NNP
at/IN
4.9/CD
%/NN
of/IN
after-tax/JJ
income/NN
,/,
far/RB
below/IN
the/DT
5.6/CD
%/NN
it/PRP
reached/VBD
in/IN
July/NNP
./.
All/PDT
the/DT
figures/NNS
are/VBP
adjusted/VBN
for/IN
seasonal/JJ
variations/NNS
./.
Here/RB
is/VBZ
the/DT
Commerce/NNP
Department/NNP
's/POS
latest/JJS
report/NN
on/IN
personal/JJ
income/NN
./.
The/DT
figures/NNS
are/VBP
at/IN
seasonally/RB
adjusted/VBN
annual/JJ
rates/NNS
in/IN
trillions/NNS
of/IN
dollars/NNS
./.
CRA/NNP
Ltd./NNP
said/VBD
it/PRP
agreed/VBD
to/TO
sell/VB
a/DT
40/CD
%/NN
stake/NN
in/IN
its/PRP$
Howick/NNP
coal/NN
mine/NN
in/IN
the/DT
state/NN
of/IN
New/NNP
South/NNP
Wales/NNP
to/TO
Mitsubishi/NNP
Development/NNP
Pty./NNP
of/IN
Japan/NNP
./.
The/DT
price/NN
was/VBD
n't/RB
disclosed/VBN
./.
The/DT
agreement/NN
is/VBZ
subject/JJ
to/TO
government/NN
approval/NN
./.
RA/NNP
acquired/VBD
the/DT
Howick/NNP
coal/NN
mine/NN
Oct./NNP
20/CD
when/WRB
it/PRP
bought/VBD
British/NNP
Petroleum/NNP
Co./NNP
's/POS
Australian/JJ
coal/NN
interests/NNS
for/IN
$/$
275/CD
million/CD
./.
CRA/NNP
said/VBD
then/RB
that/IN
it/PRP
was/VBD
looking/VBG
for/IN
a/DT
partner/NN
for/IN
the/DT
mine/NN
,/,
which/WDT
produces/VBZ
more/JJR
than/IN
three/CD
million/CD
metric/JJ
tons/NNS
of/IN
coal/NN
a/DT
year/NN
./.
CRA/NNP
is/VBZ
49%-owned/JJ
by/IN
RTZ/NNP
Corp./NNP
of/IN
Britain/NNP
./.
Control/NNP
Data/NNP
Corp./NNP
,/,
which/WDT
just/RB
months/NNS
ago/IN
was/VBD
hemorrhaging/VBG
financially/RB
,/,
thinks/VBZ
it/PRP
will/MD
be/VB
healthy/JJ
enough/RB
soon/RB
to/TO
consider/VB
repurchasing/VBG
public/JJ
debt/NN
./.
Moreover/RB
,/,
the/DT
company/NN
,/,
whose/WP$
go-it-alone/JJ
approach/NN
nearly/RB
proved/VBD
fatal/JJ
,/,
now/RB
sees/VBZ
alliances/NNS
with/IN
others/NNS
as/IN
the/DT
way/NN
back/RB
to/TO
prosperity/NN
in/IN
what/WP
it/PRP
calls/VBZ
``/``
the/DT
data/NNS
solutions/NNS
''/''
business/NN
./.
``/``
I/PRP
'm/VBP
not/RB
saying/VBG
everything/NN
is/VBZ
hunky-dory/JJ
,/,
but/CC
we/PRP
have/VBP
completed/VBN
the/DT
transition/NN
,/,
''/''
Robert/NNP
M./NNP
Price/NNP
,/,
chairman/NN
and/CC
chief/NN
executive/NN
,/,
said/VBD
in/IN
an/DT
interview/NN
./.
``/``
Transition/NN
''/''
is/VBZ
a/DT
reference/NN
to/TO
the/DT
company/NN
's/POS
five-year/JJ
restructuring/NN
effort/NN
./.
During/IN
that/DT
time/NN
,/,
Control/NNP
Data/NNP
had/VBD
losses/NNS
of/IN
more/JJR
than/IN
$/$
1/CD
billion/CD
./.
Now/RB
,/,
following/VBG
asset/NN
sales/NNS
that/WDT
shrank/VBD
revenue/NN
by/IN
more/JJR
than/IN
one-third/NN
this/DT
year/NN
alone/RB
,/,
Control/NNP
Data/NNP
is/VBZ
flush/JJ
with/IN
cash/NN
./.
So/RB
its/PRP$
senior/JJ
executives/NNS
are/VBP
talking/VBG
openly/RB
about/IN
possibly/RB
buying/VBG
back/RB
some/DT
of/IN
the/DT
company/NN
's/POS
$/$
172.5/CD
million/CD
in/IN
subordinated/VBN
convertible/JJ
debentures/NNS
next/IN
year/NN
./.
``/``
We/PRP
'd/MD
like/VB
to/TO
continue/VB
to/TO
reduce/VB
debt/NN
,/,
''/''
President/NNP
Lawrence/NNP
Perlman/NNP
said/VBD
./.
Noting/VBG
that/IN
the/DT
company/NN
is/VBZ
offering/VBG
to/TO
buy/VB
back/RB
$/$
154.2/CD
million/CD
in/IN
senior/JJ
notes/NNS
paying/VBG
12/CD
3\/4/CD
%/NN
,/,
he/PRP
said/VBD
the/DT
response/NN
will/MD
help/VB
determine/VB
future/JJ
debt-reduction/NN
efforts/NNS
./.
The/DT
offer/NN
was/VBD
automatically/RB
triggered/VBN
by/IN
the/DT
recent/JJ
sale/NN
of/IN
Control/NNP
Data/NNP
's/POS
Imprimis/NNP
disk-drive/NN
business/NN
to/TO
Seagate/NNP
Technology/NNP
Inc/NNP
./.
Mr./NNP
Perlman/NNP
,/,
who/WP
is/VBZ
also/RB
acting/VBG
chief/NN
financial/JJ
officer/NN
and/CC
the/DT
odds-on/JJ
favorite/NN
to/TO
become/VB
the/DT
next/JJ
chief/NN
executive/NN
,/,
said/VBD
the/DT
company/NN
is/VBZ
achieving/VBG
``/``
modest/JJ
positive/JJ
cash/NN
flow/NN
from/IN
operations/NNS
,/,
and/CC
we/PRP
expect/VBP
that/DT
to/TO
continue/VB
into/IN
1990/CD
./.
''/''
He/PRP
said/VBD
the/DT
company/NN
has/VBZ
no/DT
intention/NN
of/IN
tapping/VBG
its/PRP$
short-term/JJ
bank/NN
lines/NNS
``/``
for/IN
a/DT
good/JJ
part/NN
of/IN
1990/CD
./.
''/''
Sometime/RB
next/JJ
year/NN
,/,
Control/NNP
Data/NNP
will/MD
``/``
develop/VB
a/DT
new/JJ
bank/NN
relationship/NN
,/,
''/''
Mr./NNP
Perlman/NNP
said/VBD
./.
In/IN
recent/JJ
months/NNS
a/DT
group/NN
of/IN
lenders/NNS
,/,
led/VBN
by/IN
Bank/NNP
of/IN
America/NNP
,/,
has/VBZ
extended/VBN
Control/NNP
Data/NNP
up/RB
to/TO
$/$
90/CD
million/CD
in/IN
revolving/JJ
loans/NNS
through/IN
January/NNP
,/,
as/RB
well/RB
as/IN
$/$
115/CD
million/CD
in/IN
standby/JJ
letters/NNS
of/IN
credit/NN
./.
Loan/NN
covenants/NNS
require/VBP
that/IN
the/DT
company/NN
achieve/VB
specified/VBN
levels/NNS
of/IN
operating/NN
earnings/NNS
and/CC
meet/VB
a/DT
rolling/VBG
four-quarter/JJ
profitability/NN
test/NN
./.
Last/JJ
week/NN
Control/NNP
Data/NNP
reported/VBD
third-quarter/NN
earnings/NNS
of/IN
$/$
9.8/CD
million/CD
,/,
or/CC
23/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
763/CD
million/CD
./.
Through/IN
the/DT
first/JJ
nine/CD
months/NNS
,/,
the/DT
company/NN
had/VBD
a/DT
loss/NN
of/IN
$/$
484/CD
million/CD
,/,
largely/RB
reflecting/VBG
the/DT
closing/NN
of/IN
its/PRP$
supercomputer/NN
unit/NN
./.
While/IN
a/DT
few/JJ
assets/NNS
are/VBP
still/RB
being/VBG
shopped/VBN
--/:
including/VBG
the/DT
sports/NNS
and/CC
entertainment/NN
ticketing/VBG
portion/NN
of/IN
the/DT
company/NN
's/POS
Ticketron/NNP
unit/NN
--/:
Mr./NNP
Price/NNP
said/VBD
future/JJ
restructuring/NN
would/MD
be/VB
a/DT
question/NN
of/IN
strategy/NN
./.
``/``
We/PRP
do/VBP
n't/RB
need/VB
the/DT
cash/NN
./.
''/''
Ticketron/NNP
's/POS
automated/VBN
wagering/NN
business/NN
,/,
which/WDT
operates/VBZ
lotteries/NNS
in/IN
a/DT
half/DT
dozen/NN
states/NNS
,/,
is/VBZ
not/RB
for/IN
sale/NN
,/,
the/DT
company/NN
said/VBD
./.
Rather/RB
,/,
Mr./NNP
Perlman/NNP
said/VBD
,/,
Control/NNP
Data/NNP
intends/VBZ
to/TO
bid/VB
for/IN
the/DT
coming/VBG
Minnesota/NNP
lottery/NN
contract/NN
and/CC
is/VBZ
seeking/VBG
new/JJ
applications/NNS
for/IN
the/DT
technology/NN
overseas/RB
,/,
where/WRB
``/``
there/EX
is/VBZ
great/JJ
interest/NN
in/IN
games/NNS
of/IN
skill/NN
./.
''/''
He/PRP
would/MD
n't/RB
elaborate/VB
./.
Control/NNP
Data/NNP
's/POS
semiconductor/NN
business/NN
,/,
VTC/NNP
Inc./NNP
,/,
continues/VBZ
to/TO
lose/VB
money/NN
,/,
the/DT
executives/NNS
acknowledged/VBD
,/,
but/CC
they/PRP
said/VBD
they/PRP
consider/VBP
some/DT
of/IN
the/DT
technology/NN
vital/JJ
to/TO
national/JJ
defense/NN
and/CC
so/RB
are/VBP
reluctant/JJ
to/TO
dispose/VB
of/IN
it/PRP
./.
The/DT
company/NN
's/POS
strategy/NN
for/IN
keeping/VBG
its/PRP$
computer/NN
products/NNS
business/NN
profitable/JJ
--/:
it/PRP
recently/RB
achieved/VBD
profitability/NN
after/IN
several/JJ
quarters/NNS
of/IN
losses/NNS
--/:
calls/VBZ
for/IN
a/DT
narrow/JJ
focus/NN
and/CC
a/DT
lid/NN
on/IN
expenses/NNS
./.
Partly/RB
,/,
costs/NNS
will/MD
be/VB
held/VBN
down/IN
through/IN
strategic/JJ
technology/NN
alliances/NNS
,/,
management/NN
said/VBD
./.
Control/NNP
Data/NNP
recently/RB
announced/VBD
an/DT
agreement/NN
with/IN
MIPS/NNP
Computer/NNP
Systems/NNPS
Inc./NNP
to/TO
jointly/RB
develop/VB
machines/NNS
with/IN
simplified/VBN
operating/NN
software/NN
./.
James/NNP
E./NNP
Ousley/NNP
,/,
computer/NN
products/NNS
group/NN
president/NN
,/,
said/VBD
such/JJ
arrangements/NNS
could/MD
help/VB
slash/VB
Control/NNP
Data/NNP
's/POS
computer/NN
research/NN
and/CC
development/NN
costs/NNS
in/IN
half/DT
by/IN
the/DT
end/NN
of/IN
1990/CD
./.
He/PRP
disclosed/VBD
that/IN
before/IN
Control/NNP
Data/NNP
scrapped/VBD
its/PRP$
ETA/NNP
Systems/NNPS
Inc./NNP
supercomputer/NN
business/NN
this/DT
past/NN
spring/NN
,/,
those/DT
costs/NNS
were/VBD
running/VBG
at/IN
nearly/RB
35/CD
%/NN
of/IN
group/NN
revenue/NN
./.
At/IN
the/DT
same/JJ
time/NN
four/CD
of/IN
six/CD
design/NN
projects/NNS
were/VBD
spiked/VBN
,/,
he/PRP
said/VBD
./.
Asked/VBN
how/WRB
the/DT
company/NN
hopes/VBZ
to/TO
expand/VB
its/PRP$
computer/NN
hardware/NN
business/NN
,/,
Mr./NNP
Ousley/NNP
said/VBD
it/PRP
sees/VBZ
good/JJ
opportunities/NNS
in/IN
systems/NNS
integration/NN
./.
``/``
We/PRP
think/VBP
we/PRP
're/VBP
getting/VBG
only/RB
10/CD
%/NN
of/IN
the/DT
integration/NN
dollars/NNS
our/PRP$
customers/NNS
are/VBP
spending/VBG
,/,
''/''
he/PRP
said/VBD
./.
``/``
We/PRP
're/VBP
in/IN
environments/NNS
that/WDT
are/VBP
going/VBG
to/TO
spend/VB
a/DT
lot/NN
of/IN
money/NN
on/IN
that/DT
./.
''/''
Control/NNP
Data/NNP
mainframes/NNS
are/VBP
designed/VBN
for/IN
numerically/RB
intensive/JJ
computing/VBG
users/NNS
,/,
such/JJ
as/IN
the/DT
scientific/JJ
,/,
engineering/NN
and/CC
academic/JJ
communities/NNS
./.
Utilities/NNS
management/NN
is/VBZ
a/DT
major/JJ
commercial/JJ
niche/NN
./.
Reviewing/VBG
the/DT
company/NN
's/POS
scrape/NN
with/IN
disaster/NN
,/,
Mr./NNP
Price/NNP
conceded/VBD
it/PRP
had/VBD
tried/VBN
to/TO
do/VB
too/RB
much/RB
on/IN
its/PRP$
own/JJ
./.
``/``
Absolutely/RB
,/,
''/''
he/PRP
said/VBD
./.
But/CC
while/IN
its/PRP$
stock/NN
is/VBZ
selling/VBG
at/IN
about/IN
half/DT
Control/NNP
Data/NNP
's/POS
estimated/VBN
breakup/NN
value/NN
,/,
neither/CC
Messrs./NNP
Perlman/NNP
nor/CC
Price/NNP
said/VBD
he/PRP
spends/VBZ
much/JJ
time/NN
considering/VBG
the/DT
possibility/NN
of/IN
a/DT
hostile/JJ
takeover/NN
./.
``/``
We/PRP
've/VBP
been/VBN
listed/VBN
as/IN
a/DT
candidate/NN
for/IN
so/RB
long/JJ
it/PRP
's/VBZ
not/RB
worth/JJ
worrying/VBG
about/IN
,/,
''/''
said/VBD
Mr./NNP
Price/NNP
./.
Well/UH
,/,
the/DT
arrogant/JJ
East/NNP
Coast/NNP
media/NNS
have/VBP
spoken/VBN
again/RB
(/(
``/``
Going/VBG
for/IN
the/DT
Green/NN
,/,
''/''
editorial/NN
,/,
Oct./NNP
17/CD
Having/VBG
resided/VBN
in/IN
the/DT
great/JJ
state/NN
of/IN
California/NNP
for/IN
the/DT
past/JJ
seven/CD
years/NNS
,/,
I/PRP
find/VBP
it/PRP
hard/JJ
to/TO
ignore/VB
our/PRP$
environmental/JJ
problems/NNS
when/WRB
I/PRP
start/VBP
my/PRP$
commute/NN
to/TO
work/NN
with/IN
eyes/NNS
tearing/VBG
and/CC
head/NN
aching/VBG
from/IN
the/DT
polluted/JJ
air/NN
;/:
when/WRB
I/PRP
try/VBP
to/TO
enjoy/VB
the/DT
beaches/NNS
and/CC
come/VBD
home/NN
covered/VBN
with/IN
tar/NN
and/CC
oil/NN
;/:
when/WRB
I/PRP
hear/VBP
of/IN
numerous/JJ
deaths/NNS
related/VBN
to/TO
irresponsible/JJ
processing/NN
of/IN
cheese/NN
and/CC
use/NN
of/IN
chemicals/NNS
in/IN
fruit/NN
growing/NN
./.
Perhaps/RB
it/PRP
's/VBZ
entertaining/VBG
for/IN
those/DT
like/IN
you/PRP
to/TO
discount/VB
the/DT
concerns/NNS
of/IN
environmentalists/NNS
,/,
suggesting/VBG
that/IN
their/PRP$
save-the-earth/JJ
initiatives/NNS
are/VBP
``/``
whacky/JJ
''/''
and/CC
referring/VBG
to/TO
so/RB
many/JJ
citizens/NNS
as/IN
``/``
la-la/JJ
activists/NNS
./.
''/''
Strange/JJ
that/IN
we/PRP
do/VBP
n't/RB
hear/VB
similar/JJ
criticisms/NNS
of/IN
the/DT
East/NNP
Coast/NNP
activists/NNS
who/WP
seek/VBP
to/TO
clean/VB
up/IN
Boston/NNP
Harbor/NNP
or/CC
rid/VB
their/PRP$
beaches/NNS
of/IN
medical/JJ
waste/NN
./.
While/IN
there/EX
are/VBP
no/DT
easy/JJ
low-cost/JJ
solutions/NNS
,/,
simply/RB
ignoring/VBG
our/PRP$
problems/NNS
will/MD
result/VB
in/IN
their/PRP$
severity/NN
increasing/VBG
and/CC
spreading/VBG
throughout/IN
the/DT
state/NN
,/,
the/DT
nation/NN
and/CC
the/DT
world/NN
./.
If/IN
nothing/NN
else/RB
,/,
such/JJ
initiatives/NNS
as/IN
these/DT
will/MD
provide/VB
an/DT
awareness/NN
to/TO
citizens/NNS
and/CC
lawmakers/NNS
and/CC
encourage/VB
appropriate/JJ
corrective/JJ
action/NN
./.
Before/IN
your/PRP$
next/JJ
California-bashing/JJ
editorial/NN
,/,
please/VB
spend/VB
more/JJR
time/NN
out/IN
here/RB
witnessing/VBG
the/DT
situation/NN
--/:
it/PRP
just/RB
may/MD
change/VB
your/PRP$
view/NN
./.
John/NNP
Barry/NNP
Ventura/NNP
,/,
Calif/NNP
./.
I/PRP
realize/VBP
you/PRP
were/VBD
just/RB
looking/VBG
for/IN
something/NN
snotty/JJ
to/TO
say/VB
about/IN
California/NNP
and/CC
its/PRP$
environmental/JJ
movement/NN
,/,
but/CC
picking/VBG
Frank/NNP
Lloyd/NNP
Wright/NNP
to/TO
say/VB
it/PRP
for/IN
you/PRP
was/VBD
a/DT
bad/JJ
call/NN
./.
Wright/NNP
's/POS
organic/JJ
architecture/NN
demonstrated/VBD
a/DT
keen/JJ
sensitivity/NN
to/TO
the/DT
environment/NN
decades/NNS
before/IN
it/PRP
became/VBD
fashionable/JJ
among/IN
``/``
la-la/JJ
activists/NNS
./.
''/''
Indeed/RB
,/,
Wright/NNP
said/VBD
all/PDT
his/PRP$
life/NN
that/IN
the/DT
greatest/JJS
lessons/NNS
he/PRP
learned/VBD
were/VBD
derived/VBN
from/IN
the/DT
study/NN
of/IN
nature/NN
./.
Obviously/RB
,/,
it/PRP
's/VBZ
lost/VBN
on/IN
you/PRP
that/IN
about/IN
75/CD
%/NN
of/IN
the/DT
American/JJ
people/NNS
these/DT
days/NNS
fact/NN
the/DT
president/NN
of/IN
the/DT
United/NNP
States/NNPS
themselves/PRP
environmentalists/NNS
./.
As/IN
for/IN
California/NNP
being/VBG
a/DT
state/NN
run/VBN
by/IN
liberal/JJ
environmental/JJ
loonies/NNS
,/,
let/VB
's/PRP
not/RB
forget/VB
where/WRB
Ronald/NNP
Reagan/NNP
came/VBD
from/IN
./.
Perhaps/RB
Mr./NNP
Reagan/NNP
,/,
who/WP
claimed/VBD
that/IN
air/NN
pollution/NN
is/VBZ
caused/VBN
by/IN
trees/NNS
,/,
is/VBZ
the/DT
man/NN
you/PRP
should/MD
be/VB
quoting/VBG
to/TO
back/VB
up/IN
your/PRP$
position/NN
that/IN
economics/NN
is/VBZ
more/RBR
important/JJ
than/IN
the/DT
Earth/NN
./.
But/CC
it/PRP
was/VBD
Frank/NNP
Lloyd/NNP
Wright/NNP
who/WP
said/VBD
,/,
``/``
Is/VBZ
this/DT
not/RB
Anti-Christ/NNP
?/.
The/DT
Moloch/NNP
that/WDT
knows/VBZ
no/DT
God/NNP
but/CC
more/JJR
?/.
''/''
Robert/NNP
Borden/NNP
Santa/NNP
Monica/NNP
,/,
Calif/NNP
./.
Your/PRP$
editorial/NN
was/VBD
commendable/JJ
and/CC
neatly/RB
matched/VBN
by/IN
the/DT
readers/NNS
'/POS
comments/NNS
in/IN
letters/NNS
to/TO
the/DT
editor/NN
,/,
``/``
Alar/NN
:/:
Scaring/VBG
on/IN
the/DT
Side/NN
of/IN
Caution/NN
./.
''/''
The/DT
illogic/NN
and/CC
inaccuracy/NN
of/IN
John/NNP
H./NNP
Adams/NNP
's/POS
comments/NNS
for/IN
the/DT
National/NNP
Resources/NNPS
Defense/NNP
Council/NNP
fully/RB
justifies/VBZ
your/PRP$
characterization/NN
of/IN
California/NNP
's/POS
Greens/NNS
in/IN
particular/JJ
as/IN
``/``
la-la/JJ
activists/NNS
./.
''/''
We/PRP
may/MD
all/DT
hope/VB
that/IN
California/NNP
's/POS
voters/NNS
will/MD
heed/VB
the/DT
scientific/JJ
realities/NNS
that/IN
their/PRP$
own/JJ
university/NN
's/POS
renowned/JJ
Prof./NNP
Tom/NNP
Jukes/NNP
provides/VBZ
them/PRP
and/CC
ignore/VB
the/DT
charlatanry/NN
profferred/VBN
by/IN
their/PRP$
``/``
wealthy/JJ
Hollywood/NNP
weepers/NNS
./.
''/''
I/PRP
have/VBP
a/DT
different/JJ
approach/NN
to/TO
offer/VB
,/,
not/RB
only/RB
to/TO
Californians/NNPS
,/,
but/CC
to/TO
all/DT
Americans/NNPS
./.
In/IN
a/DT
free/JJ
country/NN
,/,
the/DT
law/NN
should/MD
restrict/VB
citizens/NNS
as/RB
little/JJ
as/IN
is/VBZ
consistent/JJ
with/IN
good/JJ
manners/NNS
and/CC
public/JJ
safety/NN
./.
Would-be/JJ
naysayers/NNS
should/MD
have/VB
the/DT
burden/NN
of/IN
proving/VBG
reasonable/JJ
necessity/NN
when/WRB
they/PRP
urge/VBP
a/DT
prohibition/NN
for/IN
enactment/NN
into/IN
law/NN
./.
W./NNP
Brown/NNP
Morton/NNP
Jr/NNP
./.
Warsaw/NNP
,/,
Va/NNP
./.
The/DT
170/CD
airlines/NNS
in/IN
the/DT
International/NNP
Air/NNP
Transport/NNP
Association/NNP
last/JJ
year/NN
posted/VBD
group/NN
net/JJ
profit/NN
of/IN
$/$
2.5/CD
billion/CD
on/IN
revenue/NN
of/IN
$/$
125.1/CD
billion/CD
./.
According/VBG
to/TO
the/DT
association/NN
's/POS
annual/JJ
report/NN
,/,
scheduled/VBN
to/TO
be/VB
released/VBN
today/NN
in/IN
Warsaw/NNP
,/,
IATA/NNP
members/NNS
have/VBP
n't/RB
posted/VBN
such/PDT
a/DT
strong/JJ
performance/NN
since/IN
the/DT
late/JJ
1970s/CD
./.
Revenue/NN
last/JJ
year/NN
increased/VBD
by/IN
more/JJR
than/IN
11/CD
%/NN
over/IN
1988/CD
,/,
and/CC
net/JJ
income/NN
nearly/RB
tripled/VBD
from/IN
restated/VBN
year-earlier/JJ
net/NN
of/IN
$/$
900/CD
million/CD
./.
The/DT
group/NN
attributed/VBD
the/DT
strong/JJ
results/NNS
to/TO
the/DT
favorable/JJ
economic/JJ
climate/NN
,/,
rising/VBG
demand/NN
for/IN
air/NN
travel/NN
and/CC
improved/VBN
average/JJ
yield/NN
revenue/NN
received/VBN
per/IN
ton/NN
of/IN
traffic/NN
transported/VBN
a/DT
kilometer/NN
Systemwide/NNP
,/,
IATA/NNP
airlines/NNS
carried/VBD
632/CD
million/CD
passengers/NNS
last/JJ
year/NN
,/,
2/CD
%/NN
more/JJR
than/IN
in/IN
1987/CD
./.
But/CC
passenger-kilometers/NNS
,/,
the/DT
distance/NN
flown/VBN
while/IN
carrying/VBG
people/NNS
,/,
increased/VBD
5.3/CD
%/NN
in/IN
1988/CD
./.
The/DT
association/NN
said/VBD
that/DT
lack/NN
of/IN
airport/NN
and/CC
air/NN
space/NN
capacity/NN
is/VBZ
the/DT
biggest/JJS
problem/NN
facing/VBG
the/DT
airline/NN
industry/NN
./.
The/DT
KGB/NNP
has/VBZ
abolished/VBN
a/DT
unit/NN
known/VBN
for/IN
persecuting/VBG
dissidents/NNS
,/,
the/DT
government/NN
newspaper/NN
Izvestia/NNP
said/VBD
./.
The/DT
newspaper/NN
quoted/VBD
KGB/NNP
chairman/NN
Vladimir/NNP
A./NNP
Kryuchkov/NNP
as/IN
saying/VBG
the/DT
definition/NN
of/IN
anti-Soviet/JJ
crimes/NNS
had/VBD
narrowed/VBN
,/,
the/DT
laws/NNS
had/VBD
changed/VBN
and/CC
people/NNS
no/RB
longer/RB
have/VBP
to/TO
fear/VB
a/DT
simple/JJ
slip/NN
of/IN
the/DT
tongue/NN
./.
Mr./NNP
Kryuchkov/NNP
was/VBD
quoted/VBN
as/IN
saying/VBG
that/IN
in/IN
place/NN
of/IN
the/DT
infamous/JJ
5th/JJ
Directorate/NN
a/DT
new/JJ
unit/NN
would/MD
work/VB
``/``
to/TO
foil/VB
the/DT
conspiracies/NNS
of/IN
foreign/JJ
intelligence/NN
services/NNS
to/TO
create/VB
and/CC
use/VB
organized/VBN
anti-government/JJ
groups/NNS
in/IN
our/PRP$
country/NN
./.
''/''
Czechoslovakia/NNP
has/VBZ
restricted/VBN
consumer-goods/NNS
exports/NNS
to/TO
neighbor/NN
countries/NNS
because/IN
of/IN
``/``
massive/JJ
buying/NN
out/IN
of/IN
food/NN
''/''
by/IN
tourists/NNS
from/IN
Poland/NNP
,/,
Hungary/NNP
and/CC
the/DT
Soviet/NNP
Union/NNP
,/,
the/DT
Rude/NNP
Pravo/NNP
daily/RB
said/VBD
./.
Rising/VBG
inflation/NN
in/IN
Poland/NNP
and/CC
Hungary/NNP
makes/VBZ
Czechoslovak/JJ
food/NN
,/,
clothing/NN
and/CC
shoes/NNS
relatively/RB
cheap/JJ
for/IN
visitors/NNS
from/IN
these/DT
countries/NNS
./.
The/DT
paper/NN
gave/VBD
no/DT
details/NNS
of/IN
what/WP
the/DT
restrictions/NNS
would/MD
entail/VB
but/CC
said/VBD
the/DT
measures/NNS
were/VBD
necessary/JJ
to/TO
protect/VB
the/DT
domestic/JJ
market/NN
./.
West/NNP
Germany/NNP
's/POS
biggest/JJS
union/NN
,/,
IG/NNP
Metall/NNP
,/,
said/VBD
it/PRP
is/VBZ
ready/JJ
to/TO
back/VB
demands/NNS
for/IN
more/JJR
pay/NN
and/CC
shorter/JJR
hours/NNS
with/IN
strikes/NNS
against/IN
the/DT
nation/NN
's/POS
automotive/JJ
,/,
steel/NN
and/CC
engineering/NN
industries/NNS
./.
Its/PRP$
chairman/NN
told/VBD
the/DT
union/NN
to/TO
prepare/VB
for/IN
the/DT
worst/JJS
in/IN
next/JJ
year/NN
's/POS
confrontation/NN
with/IN
employers/NNS
over/IN
a/DT
new/JJ
three-year/JJ
wage/NN
deal/NN
./.
A/DT
major/JJ
goal/NN
is/VBZ
to/TO
cut/VB
the/DT
working/VBG
week/NN
to/TO
35/CD
hours/NNS
from/IN
the/DT
present/JJ
37/CD
./.
Last/JJ
week/NN
came/VBD
news/NN
of/IN
alarm/NN
in/IN
Venice/NNP
over/IN
a/DT
plan/NN
to/TO
tap/VB
gas/NN
fields/NNS
off/IN
the/DT
city/NN
's/POS
coast/NN
./.
Now/RB
comes/VBZ
word/NN
from/IN
a/DT
scientist/NN
that/IN
over/IN
the/DT
next/JJ
century/NN
Venice/NNP
will/MD
sink/VB
nearly/RB
three/CD
times/NNS
faster/RBR
than/IN
the/DT
present/JJ
rate/NN
because/IN
of/IN
the/DT
``/``
greenhouse/NN
effect/NN
./.
''/''
``/``
Global/JJ
warming/NN
means/VBZ
higher/JJR
tides/NNS
which/WDT
will/MD
lower/VB
Venice/NNP
by/IN
another/DT
23/CD
inches/NNS
in/IN
the/DT
next/JJ
100/CD
years/NNS
,/,
''/''
Giovanni/NNP
Cecconi/NNP
of/IN
the/DT
the/DT
New/NNP
Venice/NNP
Consortium/NNP
said/VBD
./.
The/DT
consortium/NN
of/IN
scientists/NNS
and/CC
companies/NNS
was/VBD
set/VBN
up/IN
by/IN
Italy/NNP
to/TO
help/VB
preserve/VB
the/DT
fabled/JJ
city/NN
of/IN
canals/NNS
./.
Venice/NNP
has/VBZ
sunk/VBN
10/CD
inches/NNS
in/IN
this/DT
century/NN
./.
West/NNP
Germany/NNP
's/POS
Quelle/NNP
said/VBD
it/PRP
will/MD
establish/VB
a/DT
mail-order/JJ
operation/NN
with/IN
two/CD
local/JJ
partners/NNS
in/IN
the/DT
Soviet/NNP
Union/NNP
next/JJ
year/NN
./.
Saying/VBG
this/DT
is/VBZ
a/DT
first/JJ
for/IN
a/DT
Western/JJ
company/NN
,/,
West/NNP
Germany/NNP
's/POS
largest/JJS
mail-order/NN
group/NN
said/VBD
the/DT
newly/RB
established/VBN
Moscow-based/JJ
Intermoda/NNP
company/NN
is/VBZ
scheduled/VBN
to/TO
begin/VB
operations/NNS
in/IN
February/NNP
1990/CD
./.
Intermoda/NNP
will/MD
initially/RB
only/RB
send/VB
the/DT
textile/NN
and/CC
clothing/NN
section/NN
of/IN
the/DT
Quelle/NNP
catalog/NN
,/,
translated/VBN
into/IN
Russian/NNP
,/,
to/TO
Soviet/JJ
customers/NNS
who/WP
have/VBP
access/NN
to/TO
convertible/JJ
currency/NN
./.
The/DT
European/NNP
Community/NNP
Commission/NNP
has/VBZ
imposed/VBN
provisional/JJ
anti-dumping/JJ
duties/NNS
on/IN
imports/NNS
of/IN
South/JJ
Korean/JJ
small-screen/JJ
color-television/NN
sets/NNS
./.
Saying/VBG
that/IN
a/DT
surge/NN
in/IN
low-priced/JJ
imports/NNS
had/VBD
damaged/VBN
EC/NNP
producers/NNS
'/POS
profits/NNS
and/CC
led/VBN
to/TO
job/NN
losses/NNS
,/,
the/DT
commission/NN
imposed/VBD
a/DT
duty/NN
of/IN
10.2/CD
%/NN
on/IN
TVs/NNS
made/VBN
by/IN
Daewoo/NNP
,/,
a/DT
duty/NN
of/IN
12.3/CD
%/NN
on/IN
Goldstar/NNP
Co./NNP
,/,
13/CD
%/NN
on/IN
Samsung/NNP
and/CC
19.6/CD
%/NN
on/IN
TVs/NNS
made/VBN
by/IN
other/JJ
South/JJ
Korean/JJ
producers/NNS
./.
The/DT
commission/NN
said/VBD
that/IN
EC/NNP
television/NN
producers/NNS
lost/VBD
``/``
important/JJ
market/NN
shares/NNS
''/''
and/CC
suffered/VBD
an/DT
``/``
unsustainable/JJ
''/''
pressure/NN
on/IN
prices/NNS
because/IN
of/IN
the/DT
Korean/JJ
companies/NNS
'/POS
marketing/NN
and/CC
pricing/NN
policies/NNS
,/,
which/WDT
it/PRP
said/VBD
were/VBD
``/``
in/IN
clear/JJ
violation/NN
''/''
of/IN
international/JJ
trade/NN
rules/NNS
./.
In/IN
other/JJ
news/NN
concerning/VBG
South/NNP
Korea/NNP
's/POS
television/NN
industry/NN
,/,
Samsung/NNP
signed/VBD
an/DT
agreement/NN
with/IN
Soyuz/NNP
,/,
the/DT
external-trade/JJ
organization/NN
of/IN
the/DT
Soviet/NNP
Union/NNP
,/,
to/TO
swap/VB
Korean/JJ
television/NN
sets/NNS
and/CC
videocassette/NN
recorders/NNS
for/IN
pig/NN
iron/NN
from/IN
the/DT
Soviet/NNP
Union/NNP
./.
South/NNP
Korea/NNP
and/CC
the/DT
Soviet/NNP
Union/NNP
have/VBP
no/DT
diplomatic/JJ
relations/NNS
but/CC
exchanged/VBD
trade/NN
offices/NNS
earlier/RBR
this/DT
year/NN
./.
Sri/NNP
Lanka/NNP
,/,
where/WRB
more/JJR
than/IN
15,000/CD
people/NNS
have/VBP
died/VBN
in/IN
six/CD
years/NNS
of/IN
ethnic/JJ
turmoil/NN
,/,
said/VBD
it/PRP
will/MD
ban/VB
sex/NN
and/CC
violence/NN
from/IN
state-owned/JJ
television/NN
next/IN
year/NN
./.
``/``
Many/JJ
programs/NNS
we/PRP
have/VBP
now/RB
come/VBP
from/IN
the/DT
West/NN
and/CC
are/VBP
not/RB
suitable/JJ
to/TO
our/PRP$
culture/NN
,/,
''/''
a/DT
government/NN
minister/NN
said/VBD
./.
A/DT
star/NN
attraction/NN
on/IN
the/DT
national/JJ
network/NN
is/VBZ
the/DT
U.S./NNP
's/POS
``/``
Dynasty/NNP
./.
''/''
.../:
A/DT
poll/NN
of/IN
South/NNP
Koreans/NNPS
showed/VBD
overwhelming/JJ
opposition/NN
to/TO
efforts/NNS
to/TO
curb/VB
dog-meat/NN
consumption/NN
just/RB
because/IN
it/PRP
offends/VBZ
foreigners/NNS
./.
Broad/NNP
Inc./NNP
said/VBD
it/PRP
doubled/VBD
its/PRP$
regular/JJ
quarterly/JJ
dividend/NN
to/TO
five/CD
cents/NNS
a/DT
share/NN
from/IN
2.5/CD
cents/NNS
on/IN
common/JJ
,/,
and/CC
to/TO
4.5/CD
cents/NNS
a/DT
share/NN
2.25/CD
cents/NNS
on/IN
Class/NNP
B/NNP
stock/NN
,/,
payable/JJ
Nov./NNP
10/CD
to/TO
holders/NNS
of/IN
record/NN
Nov./NNP
6/CD
./.
The/DT
financial/JJ
services/NNS
company/NN
emerged/VBD
from/IN
the/DT
restructuring/NN
of/IN
Kaufman/NNP
&/CC
Broad/NNP
,/,
Inc./NNP
,/,
which/WDT
spun/VBD
off/IN
its/PRP$
home-building/JJ
subsidiary/NN
into/IN
Kaufman/NNP
&/CC
Broad/NNP
Home/NNP
Corp./NNP
earlier/RBR
this/DT
year/NN
and/CC
changed/VBD
its/PRP$
name/NN
to/TO
Broad/NNP
Inc/NNP
./.
For/IN
the/DT
10-month/JJ
fiscal/JJ
year/NN
ended/VBD
Sept./NNP
30/CD
,/,
Chairman/NNP
Eli/NNP
Broad/NNP
said/VBD
he/PRP
expected/VBD
earnings/NNS
results/NNS
to/TO
approximate/JJ
analysts/NNS
'/POS
estimates/NNS
,/,
which/WDT
the/DT
company/NN
said/VBD
have/VBP
been/VBN
revised/VBN
upward/RB
to/TO
80/CD
cents/NNS
a/DT
share/NN
./.
This/DT
would/MD
compare/VB
with/IN
an/DT
estimated/VBN
loss/NN
of/IN
3/CD
cents/NNS
a/DT
share/NN
for/IN
the/DT
comparable/JJ
10/CD
months/NNS
last/JJ
year/NN
,/,
which/WDT
included/VBD
restructuring/NN
costs/NNS
./.
If/IN
this/DT
battle/NN
were/VBD
a/DT
movie/NN
,/,
the/DT
producers/NNS
would/MD
be/VB
fighting/VBG
over/IN
two/CD
scripts/NNS
with/IN
nothing/NN
but/CC
an/DT
opening/JJ
scene/NN
in/IN
common/NN
./.
In/IN
the/DT
opener/NN
,/,
Sony/NNP
Corp./NNP
would/MD
agree/VB
to/TO
buy/VB
Columbia/NNP
Pictures/NNPS
Entertainment/NNP
Inc./NNP
in/IN
a/DT
transaction/NN
valued/VBN
at/IN
close/RB
to/TO
$/$
5/CD
billion/CD
./.
Shortly/RB
after/IN
that/DT
,/,
Sony/NNP
would/MD
offer/VB
to/TO
buy/VB
Guber-Peters/NNP
Entertainment/NNP
Co./NNP
for/IN
$/$
200/CD
million/CD
and/CC
offer/VB
its/PRP$
co-chairmen/NNS
,/,
Peter/NNP
Guber/NNP
and/CC
Jon/NNP
Peters/NNP
,/,
the/DT
chance/NN
to/TO
run/VB
Columbia/NNP
./.
Mr./NNP
Peters/NNP
would/MD
fly/VB
to/TO
New/NNP
York/NNP
with/IN
the/DT
intention/NN
of/IN
telling/VBG
Warner/NNP
Communications/NNPS
Inc./NNP
Chairman/NNP
Steven/NNP
J./NNP
Ross/NNP
that/IN
Guber-Peters/NNP
planned/VBD
to/TO
end/VB
its/PRP$
five-year/JJ
contract/NN
to/TO
produce/VB
movies/NNS
exclusively/RB
for/IN
Warner/NNP
./.
That/DT
's/VBZ
where/WRB
the/DT
two/CD
scripts/NNS
would/MD
diverge/VB
./.
In/IN
affidavits/NNS
filed/VBN
in/IN
Los/NNP
Angeles/NNP
Superior/NNP
Court/NNP
in/IN
connection/NN
with/IN
the/DT
$/$
1/CD
billion/CD
breach-of-contract/JJ
suit/NN
Warner/NNP
brought/VBD
against/IN
Sony/NNP
for/IN
hiring/VBG
the/DT
two/CD
producers/NNS
,/,
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
tell/VBP
one/CD
story/NN
./.
Warner/NNP
tells/VBZ
another/DT
./.
In/IN
the/DT
affidavits/NNS
,/,
Mr./NNP
Peters/NNP
says/VBZ
he/PRP
was/VBD
``/``
shocked/VBN
''/''
when/WRB
Mr./NNP
Ross/NNP
refused/VBD
a/DT
meeting/NN
and/CC
made/VBD
it/PRP
clear/JJ
he/PRP
would/MD
stop/VB
them/PRP
./.
Mr./NNP
Peters/NNP
claims/VBZ
he/PRP
reminded/VBD
Mr./NNP
Ross/NNP
that/IN
Robert/NNP
Daly/NNP
and/CC
Terry/NNP
Semel/NNP
,/,
the/DT
top/JJ
executives/NNS
of/IN
the/DT
Warner/NNP
Brothers/NNPS
studio/NN
,/,
had/VBD
``/``
repeatedly/RB
agreed/VBN
that/IN
we/PRP
had/VBD
every/DT
right/NN
to/TO
accept/VB
''/''
an/DT
offer/NN
such/JJ
as/IN
Sony/NNP
's/POS
./.
In/IN
response/NN
,/,
Mr./NNP
Peters/NNP
says/VBZ
,/,
Mr./NNP
Ross/NNP
referred/VBD
to/TO
his/PRP$
colleagues/NNS
at/IN
Warner/NNP
with/IN
an/DT
``/``
obscenity/NN
''/''
and/CC
said/VBD
:/:
``/``
Tell/VB
them/PRP
that/IN
they/PRP
do/VBP
n't/RB
have/VB
a/DT
job/NN
./.
You/PRP
can/MD
take/VB
them/PRP
with/IN
you/PRP
./.
''/''
Warner/NNP
denies/VBZ
Mr./NNP
Ross/NNP
ever/RB
said/VBD
any/DT
such/JJ
thing/NN
,/,
and/CC
,/,
in/IN
fact/NN
,/,
denies/VBZ
virtually/RB
everything/NN
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
say/VBP
in/IN
their/PRP$
affidavits/NNS
./.
Tomorrow/NN
,/,
Warner/NNP
will/MD
file/VB
another/DT
batch/NN
of/IN
documents/NNS
contending/VBG
that/IN
``/``
the/DT
essence/NN
of/IN
everything/NN
these/DT
guys/NNS
are/VBP
saying/VBG
is/VBZ
basically/RB
lies/NNS
,/,
''/''
says/VBZ
Warner/NNP
's/POS
chief/NN
outside/JJ
counsel/NN
,/,
Stuart/NNP
Rabinowitz/NNP
./.
Thursday/NNP
,/,
a/DT
judge/NN
is/VBZ
scheduled/VBN
to/TO
rule/VB
on/IN
Warner/NNP
's/POS
motion/NN
seeking/VBG
to/TO
block/VB
the/DT
Guber-Peters/NNP
duo/NN
from/IN
going/VBG
to/TO
Columbia/NNP
./.
The/DT
battery/NN
of/IN
legal/JJ
documents/NNS
filed/VBN
in/IN
the/DT
past/JJ
week/NN
in/IN
connection/NN
with/IN
the/DT
suit/NN
provide/VBP
a/DT
peek/NN
into/IN
the/DT
inner/JJ
workings/NNS
of/IN
this/DT
Hollywood/NNP
dogfight/NN
./.
But/CC
they/PRP
also/RB
make/VBP
it/PRP
clear/JJ
that/IN
the/DT
first/JJ
thing/NN
a/DT
judge/NN
will/MD
have/VB
to/TO
decide/VB
is/VBZ
which/WDT
,/,
if/IN
any/DT
,/,
version/NN
of/IN
events/NNS
in/IN
this/DT
morass/NN
is/VBZ
fiction/NN
,/,
and/CC
which/WDT
fact/NN
./.
The/DT
matter/NN
may/MD
never/RB
even/RB
be/VB
tried/VBN
in/IN
court/NN
./.
Warner/NNP
says/VBZ
that/IN
what/WP
it/PRP
really/RB
wants/VBZ
is/VBZ
for/IN
the/DT
producers/NNS
to/TO
fulfill/VB
their/PRP$
contractual/JJ
obligations/NNS
,/,
but/CC
the/DT
bitterness/NN
of/IN
this/DT
battle/NN
and/CC
the/DT
accusations/NNS
flying/VBG
on/IN
both/DT
sides/NNS
make/VBP
it/PRP
unlikely/JJ
that/IN
the/DT
decade-long/JJ
relationship/NN
between/IN
Warner/NNP
and/CC
its/PRP$
two/CD
most/JJS
prolific/JJ
producers/NNS
can/MD
ever/RB
be/VB
repaired/VBN
./.
Warner/NNP
,/,
which/WDT
is/VBZ
in/IN
the/DT
process/NN
of/IN
merging/VBG
with/IN
Time/NNP
Warner/NNP
Inc./NNP
,/,
says/VBZ
it/PRP
is/VBZ
willing/JJ
to/TO
settle/VB
the/DT
matter/NN
out/IN
of/IN
court/NN
./.
So/IN
far/RB
,/,
however/RB
,/,
Sony/NNP
has/VBZ
n't/RB
been/VBN
willing/JJ
to/TO
meet/VB
its/PRP$
considerable/JJ
financial/JJ
demands/NNS
./.
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
do/VBP
n't/RB
have/VB
much/RB
to/TO
gain/VB
from/IN
a/DT
protracted/JJ
battle/NN
./.
Sony/NNP
,/,
for/IN
its/PRP$
part/NN
,/,
could/MD
decide/VB
that/IN
the/DT
cost/NN
of/IN
a/DT
Warner/NNP
settlement/NN
or/CC
court/NN
fight/NN
is/VBZ
too/RB
high/JJ
,/,
choosing/VBG
instead/RB
to/TO
find/VB
someone/NN
else/RB
to/TO
run/VB
Columbia/NNP
,/,
although/IN
that/DT
too/RB
would/MD
be/VB
costly/JJ
given/VBN
the/DT
financial/JJ
arrangement/NN
already/RB
guaranteed/VBN
to/TO
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
./.
In/IN
that/DT
case/NN
,/,
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
might/MD
not/RB
suffer/VB
financially/RB
,/,
but/CC
they/PRP
would/MD
be/VB
left/VBN
without/IN
their/PRP$
dream/NN
job/NN
of/IN
running/VBG
a/DT
studio/NN
and/CC
with/IN
a/DT
considerably/RB
scarred/VBN
relationship/NN
with/IN
Warner/NNP
./.
At/IN
the/DT
center/NN
of/IN
any/DT
court/NN
fight/NN
will/MD
be/VB
the/DT
differing/VBG
interpretations/NNS
of/IN
the/DT
written/VBN
contract/NN
between/IN
Warner/NNP
and/CC
the/DT
two/CD
producers/NNS
,/,
but/CC
other/JJ
murkier/JJR
issues/NNS
will/MD
play/VB
a/DT
big/JJ
role/NN
./.
Sony/NNP
and/CC
the/DT
Guber-Peters/NNP
team/NN
are/VBP
hanging/VBG
much/RB
of/IN
their/PRP$
case/NN
on/IN
Warner/NNP
's/POS
willingness/NN
last/JJ
year/NN
to/TO
release/VB
the/DT
producers/NNS
from/IN
another/DT
contract/NN
and/CC
on/IN
an/DT
oral/JJ
agreement/NN
they/PRP
say/VBP
allowed/VBN
them/PRP
to/TO
terminate/VB
the/DT
current/JJ
written/VBN
contract/NN
if/IN
the/DT
opportunity/NN
to/TO
run/VB
a/DT
major/JJ
studio/NN
came/VBD
up/IN
./.
Warner/NNP
denies/VBZ
such/PDT
an/DT
agreement/NN
was/VBD
made/VBN
,/,
and/CC
disputes/VBZ
the/DT
Guber-Peters/NNP
version/NN
of/IN
virtually/RB
every/DT
telephone/NN
call/NN
and/CC
meeting/VBG
the/DT
two/CD
sides/NNS
had/VBD
on/IN
the/DT
matter/NN
./.
Just/RB
how/WRB
rancorous/JJ
the/DT
relationship/NN
has/VBZ
become/VBN
is/VBZ
clear/JJ
from/IN
the/DT
differing/VBG
versions/NNS
of/IN
the/DT
two/CD
sides/NNS
'/POS
current/JJ
business/NN
dealings/NNS
./.
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
say/VBP
in/IN
their/PRP$
affidavits/NNS
that/IN
Warner/NNP
already/RB
is/VBZ
taking/VBG
steps/NNS
to/TO
freeze/VB
them/PRP
out/IN
of/IN
their/PRP$
projects/NNS
at/IN
Warner/NNP
,/,
notably/RB
the/DT
Sylvester/NNP
Stallone/NNP
film/NN
``/``
Tango/NNP
and/CC
Cash/NNP
./.
''/''
Mr./NNP
Peters/NNP
says/VBZ
in/IN
his/PRP$
affidavit/NN
that/IN
the/DT
movie/NN
's/POS
staff/NN
was/VBD
told/VBN
last/JJ
week/NN
that/IN
Warner/NNP
was/VBD
``/``
taking/VBG
over/IN
''/''
the/DT
picture/NN
,/,
and/CC
another/DT
producer/NN
would/MD
be/VB
giving/VBG
all/DT
of/IN
the/DT
orders/NNS
./.
Over/IN
his/PRP$
objections/NNS
,/,
Mr./NNP
Peters/NNP
says/VBZ
,/,
the/DT
film/NN
's/POS
release/NN
date/NN
was/VBD
moved/VBN
up/IN
``/``
by/IN
many/JJ
months/NNS
''/''
to/TO
December/NNP
,/,
and/CC
plans/NNS
for/IN
a/DT
soundtrack/NN
``/``
worth/JJ
millions/NNS
of/IN
dollars/NNS
''/''
were/VBD
dropped/VBN
./.
Hubert/NNP
de/NNP
la/NNP
Bouillaire/NNP
,/,
an/DT
editor/NN
on/IN
the/DT
film/NN
,/,
backs/VBZ
Mr./NNP
Peters/NNP
in/IN
a/DT
separate/JJ
sworn/VBN
declaration/NN
./.
Mr./NNP
de/NNP
la/NNP
Bouillaire/NNP
says/VBZ
Warner/NNP
Brothers/NNPS
production/NN
president/NN
Mark/NNP
Canton/NNP
called/VBD
him/PRP
Oct./NNP
19/CD
and/CC
said/VBD
Mr./NNP
Peters/NNP
is/VBZ
``/``
off/IN
the/DT
picture/NN
./.
If/IN
he/PRP
calls/VBZ
you/PRP
up/IN
,/,
just/RB
tell/VB
him/PRP
everything/NN
is/VBZ
fine/JJ
./.
''/''
The/DT
editor/NN
also/RB
says/VBZ
the/DT
new/JJ
producer/NN
on/IN
the/DT
film/NN
,/,
Bruce/NNP
Baird/NNP
,/,
told/VBD
editors/NNS
to/TO
screen/VB
the/DT
picture/NN
without/IN
telling/VBG
stars/NNS
Sylvester/NNP
Stallone/NNP
and/CC
Kurt/NNP
Russell/NNP
or/CC
Mr./NNP
Peters/NNP
./.
``/``
The/DT
less/JJS
they/PRP
know/VBP
,/,
the/DT
easier/JJR
it/PRP
is/VBZ
for/IN
us/PRP
./.
If/IN
someone/NN
asks/VBZ
,/,
just/RB
lie/VB
and/CC
tell/VB
them/PRP
it/PRP
will/MD
be/VB
done/VBN
,/,
''/''
Mr./NNP
de/NNP
la/NNP
Bouillaire/NNP
says/VBZ
Mr./NNP
Baird/NNP
told/VBD
them/PRP
./.
That/IN
,/,
says/VBZ
Warner/NNP
's/POS
Mr./NNP
Rabinowitz/NNP
,/,
is/VBZ
``/``
a/DT
total/JJ
100/CD
%/NN
lie/NN
./.
''/''
The/DT
movie/NN
,/,
he/PRP
says/VBZ
,/,
is/VBZ
in/IN
its/PRP$
post-production/NN
stages/NNS
of/IN
``/``
cleaning/VBG
up/IN
the/DT
film/NN
./.
''/''
He/PRP
says/VBZ
Mr./NNP
Peters/NNP
and/CC
Mr./NNP
Guber/NNP
,/,
as/IN
the/DT
contractual/JJ
producers/NNS
with/IN
consultation/NN
rights/NNS
,/,
have/VBP
been/VBN
invited/VBN
to/TO
screenings/NNS
and/CC
to/TO
give/VB
their/PRP$
input/NN
on/IN
the/DT
film/NN
./.
Dozens/NNS
of/IN
Guber-Peters/NNP
staffers/NNS
are/VBP
still/RB
working/VBG
on/IN
the/DT
Warner/NNP
lot/NN
and/CC
consulting/VBG
on/IN
various/JJ
projects/NNS
on/IN
a/DT
``/``
daily/JJ
basis/NN
,/,
''/''
the/DT
attorney/NN
says/VBZ
./.
Mr./NNP
Guber/NNP
,/,
in/IN
his/PRP$
affidavit/NN
,/,
says/VBZ
that/IN
when/WRB
he/PRP
advised/VBD
Warner/NNP
President/NNP
Terry/NNP
Semel/NNP
of/IN
the/DT
Sony/NNP
offer/NN
at/IN
lunch/NN
on/IN
Sept./NNP
25/CD
,/,
Mr./NNP
Semel/NNP
``/``
hugged/VBD
and/CC
congratulated/VBD
me/PRP
,/,
and/CC
expressed/VBD
joy/NN
that/IN
we/PRP
had/VBD
finally/RB
realized/VBN
our/PRP$
long-term/JJ
ambition/NN
of/IN
running/VBG
and/CC
having/VBG
an/DT
equity/NN
position/NN
in/IN
a/DT
major/JJ
entertainment/NN
company/NN
./.
''/''
Mr./NNP
Guber/NNP
says/VBZ
he/PRP
brought/VBD
to/TO
lunch/NN
a/DT
release/NN
document/NN
Warner/NNP
had/VBD
agreed/VBN
to/TO
in/IN
1988/CD
,/,
when/WRB
he/PRP
and/CC
Mr./NNP
Peters/NNP
made/VBD
an/DT
aborted/JJ
bid/NN
to/TO
buy/VB
part/NN
of/IN
MGM\/UA/NNP
Entertainment/NNP
Co./NNP
to/TO
run/VB
the/DT
MGM/NNP
studio/NN
./.
Mr./NNP
Guber/NNP
says/VBZ
he/PRP
had/VBD
crossed/VBN
out/IN
``/``
MGM/NNP
''/''
with/IN
a/DT
red/JJ
pen/NN
and/CC
written/VBN
in/IN
``/``
Columbia/NNP
,/,
''/''
giving/VBG
the/DT
document/NN
to/TO
Mr./NNP
Semel/NNP
./.
``/``
Mr./NNP
Semel/NNP
said/VBD
absolutely/RB
nothing/NN
to/TO
indicate/VB
Warner/NNP
would/MD
have/VB
any/DT
objection/NN
to/TO
our/PRP$
assuming/VBG
management/NN
positions/NNS
at/IN
Columbia/NNP
,/,
''/''
Mr./NNP
Guber/NNP
says/VBZ
./.
Mr./NNP
Semel/NNP
,/,
in/IN
his/PRP$
affidavit/NN
,/,
does/VBZ
n't/RB
mention/VB
any/DT
hugging/NN
or/CC
congratulating/NN
./.
He/PRP
says/VBZ
he/PRP
told/VBD
Mr./NNP
Guber/NNP
he/PRP
could/MD
n't/RB
sign/VB
any/DT
documents/NNS
and/CC
that/IN
``/``
the/DT
deal/NN
,/,
although/IN
apparently/RB
a/DT
good/JJ
one/CD
for/IN
him/PRP
and/CC
Mr./NNP
Peters/NNP
,/,
would/MD
have/VB
a/DT
very/RB
negative/JJ
impact/NN
on/IN
Warner/NNP
./.
''/''
He/PRP
said/VBD
he/PRP
would/MD
contact/VB
Mr./NNP
Ross/NNP
and/CC
Warner/NNP
Brothers/NNPS
Chairman/NNP
Robert/NNP
Daly/NNP
and/CC
that/IN
,/,
in/IN
a/DT
conference/NN
call/NN
,/,
the/DT
three/CD
agreed/VBD
they/PRP
could/MD
n't/RB
let/VB
the/DT
producers/NNS
out/IN
of/IN
their/PRP$
contract/NN
./.
Mr./NNP
Ross/NNP
,/,
in/IN
his/PRP$
own/JJ
affidavit/NN
,/,
says/VBZ
he/PRP
and/CC
Mr./NNP
Daly/NNP
instructed/VBD
Mr./NNP
Semel/NNP
to/TO
tell/VB
the/DT
producers/NNS
Warner/NNP
would/MD
n't/RB
terminate/VB
their/PRP$
agreement/NN
./.
Mr./NNP
Guber/NNP
says/VBZ
that/IN
Mr./NNP
Semel/NNP
did/VBD
convey/VB
that/DT
information/NN
and/CC
that/IN
Mr./NNP
Semel/NNP
said/VBD
Mr./NNP
Ross/NNP
was/VBD
``/``
crazy/JJ
because/IN
of/IN
the/DT
Time/NNP
deal/NN
,/,
''/''
meaning/NN
,/,
Mr./NNP
Guber/NNP
says/VBZ
,/,
that/IN
Mr./NNP
Ross/NNP
``/``
did/VBD
not/RB
want/VB
to/TO
communicate/VB
to/TO
his/PRP$
new/JJ
merger/NN
partner/NN
,/,
Time/NNP
Inc./NNP
,/,
that/IN
Warner/NNP
's/POS
agreements/NNS
provided/VBD
for/IN
our/PRP$
departure/NN
under/IN
these/DT
circumstances/NNS
./.
''/''
Mr./NNP
Guber/NNP
also/RB
says/VBZ
in/IN
his/PRP$
affidavit/NN
that/IN
Mr./NNP
Daly/NNP
``/``
told/VBD
us/PRP
that/IN
even/RB
if/IN
Sony/NNP
did/VBD
not/RB
want/VB
us/PRP
,/,
Warner/NNP
's/POS
relationship/NN
with/IN
us/PRP
already/RB
was/VBD
irreparably/RB
damaged/VBN
,/,
that/IN
there/EX
was/VBD
no/DT
way/NN
`/``
to/TO
put/VB
the/DT
egg/NN
together/RB
,/,
'/''
and/CC
that/IN
it/PRP
would/MD
sue/VB
Sony/NNP
for/IN
tons/NNS
of/IN
money/NN
./.
''/''
Moreover/RB
,/,
Mr./NNP
Guber/NNP
claims/VBZ
,/,
Mr./NNP
Semel/NNP
told/VBD
him/PRP
that/IN
Mr./NNP
Ross/NNP
probably/RB
would/MD
n't/RB
object/VB
``/``
if/IN
it/PRP
were/VBD
anybody/NN
other/JJ
than/IN
Sony/NNP
./.
But/CC
Sony/NNP
is/VBZ
a/DT
problem/NN
./.
''/''
The/DT
Guber-Peters/NNP
side/NN
has/VBZ
said/VBN
Warner/NNP
is/VBZ
particularly/RB
concerned/VBN
about/IN
the/DT
prospect/NN
of/IN
a/DT
huge/JJ
Japanese/JJ
company/NN
controlling/VBG
important/JJ
segments/NNS
of/IN
the/DT
U.S./NNP
entertainment/NN
business/NN
./.
Some/DT
in/IN
Hollywood/NNP
suggest/VBP
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
took/VBD
encouragement/NN
from/IN
Warner/NNP
studio/NN
executives/NNS
such/JJ
as/IN
Mr./NNP
Semel/NNP
and/CC
Mr./NNP
Canton/NNP
too/RB
literally/RB
./.
According/VBG
to/TO
this/DT
theory/NN
,/,
Warner/NNP
executives/NNS
,/,
hoping/VBG
to/TO
strengthen/VB
their/PRP$
relationships/NNS
with/IN
the/DT
producers/NNS
,/,
encouraged/VBD
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
in/IN
their/PRP$
ambitions/NNS
to/TO
build/VB
a/DT
major/JJ
entertainment/NN
company/NN
./.
But/CC
the/DT
Warner/NNP
executives/NNS
in/IN
their/PRP$
affidavits/NNS
deny/VBP
ever/RB
telling/VBG
the/DT
producers/NNS
they/PRP
could/MD
get/VB
out/IN
of/IN
their/PRP$
written/VBN
contract/NN
./.
Mr./NNP
Rabinowitz/NNP
,/,
the/DT
Warner/NNP
attorney/NN
,/,
says/VBZ
the/DT
studio/NN
still/RB
wants/VBZ
the/DT
producers/NNS
to/TO
come/VB
back/RB
and/CC
fulfill/VB
their/PRP$
contract/NN
./.
``/``
They/PRP
are/VBP
like/IN
a/DT
mini-studio/NN
;/:
they/PRP
have/VBP
50/CD
projects/NNS
in/IN
development/NN
for/IN
Warner/NNP
,/,
''/''
he/PRP
says/VBZ
./.
But/CC
Mr./NNP
Guber/NNP
indicates/VBZ
in/IN
his/PRP$
affidavit/NN
that/IN
not/RB
all/DT
of/IN
the/DT
projects/NNS
will/MD
be/VB
used/VBN
./.
For/IN
example/NN
,/,
he/PRP
says/VBZ
that/IN
since/IN
1985/CD
,/,
he/PRP
and/CC
Mr./NNP
Peters/NNP
have/VBP
developed/VBN
over/IN
85/CD
movie/NN
projects/NNS
,/,
and/CC
Warner/NNP
has/VBZ
``/``
passed/VBN
''/''
or/CC
chosen/VBN
not/RB
to/TO
produce/VB
at/IN
least/JJS
76/CD
./.
As/IN
for/IN
the/DT
projects/NNS
remaining/VBG
at/IN
Warner/NNP
,/,
Mr./NNP
Guber/NNP
says/VBZ
,/,
``/``
Mr./NNP
Semel/NNP
informed/VBD
me/PRP
that/IN
Warner/NNP
's/POS
producers/NNS
have/VBP
already/RB
started/VBN
a/DT
`/``
feeding/NN
frenzy/NN
'/''
for/IN
our/PRP$
projects/NNS
./.
''/''
E.W./NNP
Scripps/NNP
Co./NNP
said/VBD
it/PRP
has/VBZ
acquired/VBN
a/DT
Georgia/NNP
cable/NN
television/NN
company/NN
and/CC
a/DT
Massachusetts/NNP
publishing/NN
firm/NN
./.
Terms/NNS
on/IN
both/DT
deals/NNS
were/VBD
n't/RB
disclosed/VBN
./.
The/DT
media/NNS
company/NN
said/VBD
it/PRP
purchased/VBD
Cable/NNP
USA/NNP
Inc./NNP
,/,
a/DT
privately/RB
held/VBN
cable/NN
television/NN
system/NN
in/IN
Carroll/NNP
County/NNP
,/,
Ga./NNP
,/,
a/DT
suburb/NN
of/IN
Atlanta/NNP
./.
The/DT
system/NN
is/VBZ
still/RB
under/IN
construction/NN
and/CC
will/MD
serve/VB
a/DT
market/NN
of/IN
7,600/CD
homes/NNS
./.
The/DT
company/NN
also/RB
has/VBZ
acquired/VBN
Sundance/NNP
Publishers/NNPS
and/CC
Distributors/NNPS
Inc./NNP
,/,
a/DT
family/NN
owned/VBN
producer/NN
and/CC
distributor/NN
of/IN
educational/JJ
materials/NNS
in/IN
Littleton/NNP
,/,
Mass/NNP
./.
Despite/IN
politicians/NNS
'/POS
hand-wringing/NN
about/IN
the/DT
federal/JJ
budget/NN
,/,
the/DT
government/NN
ended/VBD
fiscal/JJ
1989/CD
with/IN
a/DT
$/$
152.08/CD
billion/CD
deficit/NN
,/,
about/IN
the/DT
same/JJ
as/IN
the/DT
two/CD
previous/JJ
years/NNS
./.
Even/RB
White/NNP
House/NNP
budget/NN
director/NN
Richard/NNP
Darman/NNP
had/VBD
trouble/NN
finding/VBG
a/DT
silver/NN
lining/NN
in/IN
the/DT
report/NN
./.
``/``
I/PRP
suppose/VBP
you/PRP
could/MD
say/VB
the/DT
good/JJ
news/NN
is/VBZ
that/IN
the/DT
deficits/NNS
are/VBP
not/RB
heading/VBG
up/IN
,/,
''/''
he/PRP
said/VBD
,/,
``/``
but/CC
you/PRP
ca/MD
n't/RB
be/VB
satisfied/VBN
with/IN
deficits/NNS
at/IN
this/DT
level/NN
and/CC
we/PRP
're/VBP
not/RB
./.
''/''
The/DT
federal/JJ
deficit/NN
was/VBD
$/$
155.15/CD
billion/CD
in/IN
1988/CD
and/CC
$/$
149.69/CD
billion/CD
in/IN
1987/CD
./.
The/DT
1989/CD
deficit/NN
would/MD
have/VB
been/VBN
nearly/RB
$/$
10/CD
billion/CD
larger/JJR
had/VBD
the/DT
government/NN
been/VBN
able/JJ
to/TO
spend/VB
as/RB
much/RB
as/IN
Congress/NNP
intended/VBD
on/IN
cleaning/NN
up/RP
the/DT
thrift/NN
industry/NN
before/IN
the/DT
year/NN
ended/VBD
on/IN
Sept./NNP
30/CD
./.
Because/IN
the/DT
Resolution/NNP
Trust/NNP
Corp/NNP
./.
could/MD
n't/RB
spend/VB
the/DT
money/NN
fast/RB
enough/RB
,/,
the/DT
savings-and-loan/NN
outlays/NNS
were/VBD
pushed/VBN
into/IN
fiscal/JJ
1990/CD
./.
Nevertheless/RB
,/,
the/DT
1989/CD
deficit/NN
still/RB
exceeded/VBD
the/DT
$/$
136/CD
billion/CD
target/NN
set/VBN
by/IN
the/DT
Gramm-Rudman/NNP
deficit-reduction/NN
law/NN
by/IN
$/$
16/CD
billion/CD
,/,
a/DT
reminder/NN
of/IN
that/DT
law/NN
's/POS
shortcomings/NNS
./.
The/DT
law/NN
sets/VBZ
a/DT
deficit/NN
target/NN
of/IN
$/$
100/CD
billion/CD
for/IN
fiscal/JJ
1990/CD
./.
A/DT
partisan/JJ
fight/NN
over/IN
cutting/VBG
capital-gains/JJ
taxes/NNS
has/VBZ
slowed/VBN
the/DT
progress/NN
of/IN
1990/CD
deficit-reduction/NN
legislation/NN
almost/RB
to/TO
a/DT
halt/NN
,/,
triggering/VBG
across-the-board/JJ
spending/NN
cuts/NNS
under/IN
the/DT
Gramm-Rudman/NNP
law/NN
./.
The/DT
White/NNP
House/NNP
and/CC
the/DT
Democratic/JJ
leadership/NN
in/IN
Congress/NNP
blame/VBP
each/DT
other/JJ
for/IN
turning/VBG
capital-gains/JJ
taxes/NNS
into/IN
such/PDT
a/DT
divisive/JJ
issue/NN
this/DT
year/NN
./.
Neither/DT
side/NN
showed/VBD
any/DT
sign/NN
of/IN
retreating/VBG
./.
Meeting/VBG
with/IN
reporters/NNS
Friday/NNP
,/,
Mr./NNP
Darman/NNP
again/RB
said/VBD
he/PRP
would/MD
rather/RB
live/VB
with/IN
across-the-board/JJ
spending/NN
cuts/NNS
than/IN
accept/VB
a/DT
deficit-reduction/JJ
bill/NN
like/IN
the/DT
one/CD
passed/VBN
by/IN
the/DT
House/NNP
,/,
which/WDT
would/MD
increase/VB
spending/NN
in/IN
future/JJ
years/NNS
./.
Underscoring/VBG
the/DT
size/NN
of/IN
the/DT
deficits/NNS
of/IN
the/DT
past/JJ
few/JJ
years/NNS
,/,
the/DT
Treasury/NNP
report/NN
showed/VBD
that/IN
for/IN
the/DT
first/JJ
time/NN
interest/NN
paid/VBN
on/IN
the/DT
public/JJ
debt/NN
--/:
$/$
240.86/CD
billion/CD
--/:
exceeded/VBD
spending/NN
on/IN
Social/NNP
Security/NNP
,/,
the/DT
single/JJ
largest/JJS
government/NN
program/NN
./.
In/IN
all/DT
,/,
federal/JJ
outlays/NNS
amounted/VBD
to/TO
$/$
1.143/CD
trillion/CD
in/IN
1989/CD
,/,
up/RB
7.5/CD
%/NN
from/IN
the/DT
previous/JJ
year/NN
,/,
the/DT
Treasury/NNP
said/VBD
./.
Federal/NNP
revenues/NNS
rose/VBD
9/CD
%/NN
to/TO
$/$
990.79/CD
billion/CD
./.
The/DT
Treasury/NNP
said/VBD
a/DT
surge/NN
in/IN
tax/NN
receipts/NNS
noted/VBN
earlier/RBR
in/IN
the/DT
year/NN
did/VBD
n't/RB
turn/VB
out/IN
to/TO
be/VB
quite/RB
as/RB
strong/JJ
as/IN
it/PRP
first/RB
appeared/VBD
./.
The/DT
Treasury/NNP
marked/VBD
up/IN
its/PRP$
forecast/NN
by/IN
$/$
17/CD
million/CD
in/IN
July/NNP
,/,
but/CC
that/DT
proved/VBD
to/TO
be/VB
about/IN
$/$
5/CD
billion/CD
too/RB
optimistic/JJ
./.
The/DT
government/NN
ran/VBD
a/DT
deficit/NN
of/IN
$/$
6.16/CD
billion/CD
in/IN
September/NNP
,/,
compared/VBN
with/IN
a/DT
surplus/NN
of/IN
$/$
10.17/CD
billion/CD
in/IN
September/NNP
1988/CD
./.
Outlays/NNS
for/IN
the/DT
month/NN
totaled/VBD
$/$
105.39/CD
billion/CD
,/,
up/RB
from/IN
$/$
87.57/CD
billion/CD
a/DT
year/NN
earlier/RBR
./.
The/DT
increase/NN
reflects/VBZ
spending/VBG
on/IN
the/DT
S&L/NN
rescue/NN
as/RB
well/RB
as/IN
payroll/NN
and/CC
Social/NNP
Security/NNP
checks/NNS
normally/RB
issued/VBN
in/IN
October/NNP
that/WDT
were/VBD
issued/VBN
in/IN
September/NNP
this/DT
year/NN
because/IN
Oct./NNP
1/CD
fell/VBD
on/IN
a/DT
Sunday/NNP
./.
Revenues/NNS
were/VBD
$/$
99.23/CD
billion/CD
,/,
up/RB
from/IN
$/$
97.74/CD
billion/CD
a/DT
year/NN
earlier/RBR
./.
CMS/NNP
Energy/NNP
Corp./NNP
said/VBD
it/PRP
would/MD
begin/VB
paying/VBG
a/DT
10-cent-a-share/JJ
quarterly/NN
dividend/NN
,/,
the/DT
company/NN
's/POS
first/JJ
since/IN
1984/CD
./.
Consumers/NNP
Power/NNP
Co./NNP
,/,
now/RB
the/DT
main/JJ
unit/NN
of/IN
CMS/NNP
Energy/NNP
,/,
ran/VBD
into/IN
financial/JJ
problems/NNS
over/IN
its/PRP$
$/$
4.2/CD
billion/CD
Midland/NNP
nuclear/JJ
plant/NN
,/,
which/WDT
was/VBD
abandoned/VBN
as/IN
a/DT
nuclear/JJ
facility/NN
in/IN
1984/CD
because/IN
of/IN
construction/NN
delays/NNS
and/CC
high/JJ
costs/NNS
./.
CMS/NNP
is/VBZ
nearly/RB
done/VBN
converting/VBG
the/DT
Midland/NNP
plant/NN
to/TO
a/DT
gas-fired/JJ
cogeneration/NN
facility/NN
at/IN
a/DT
cost/NN
of/IN
$/$
600/CD
million/CD
./.
CMS/NNP
management/NN
said/VBD
Thursday/NNP
that/IN
they/PRP
planned/VBD
to/TO
recommend/VB
paying/VBG
a/DT
modest/JJ
dividend/NN
when/WRB
the/DT
board/NN
of/IN
directors/NNS
met/VBD
Friday/NNP
./.
The/DT
dividend/NN
will/MD
be/VB
paid/VBN
Nov./NNP
22/CD
to/TO
shares/NNS
of/IN
record/NN
Nov./NNP
7/CD
./.
The/DT
company/NN
suffered/VBD
a/DT
loss/NN
of/IN
$/$
270/CD
million/CD
in/IN
1985/CD
,/,
but/CC
its/PRP$
financial/JJ
situation/NN
has/VBZ
been/VBN
improving/VBG
since/IN
then/RB
./.
CMS/NNP
said/VBD
it/PRP
earned/VBD
$/$
237.8/CD
million/CD
in/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
Humana/NNP
Inc./NNP
said/VBD
it/PRP
expects/VBZ
to/TO
receive/VB
about/IN
$/$
27/CD
million/CD
in/IN
federal/JJ
income-tax/JJ
refunds/NNS
and/CC
interest/NN
from/IN
a/DT
court/NN
ruling/VBG
on/IN
a/DT
tax/NN
dispute/NN
./.
The/DT
health-care/JJ
company/NN
said/VBD
it/PRP
expects/VBZ
the/DT
refund/NN
to/TO
be/VB
included/VBN
in/IN
the/DT
first/JJ
quarter/NN
ending/VBG
Nov./NNP
30/CD
./.
The/DT
refund/NN
is/VBZ
about/IN
$/$
9/CD
million/CD
./.
Accrued/VBN
interest/NN
on/IN
the/DT
refund/NN
was/VBD
about/IN
$/$
18/CD
million/CD
as/IN
of/IN
Oct./NNP
25/CD
./.
The/DT
refund/NN
stems/VBZ
from/IN
a/DT
court/NN
ruling/NN
that/WDT
found/VBD
certain/JJ
payments/NNS
by/IN
Humana/NNP
subsidiaries/NNS
to/TO
its/PRP$
insurance/NN
subsidiary/NN
during/IN
fiscal/JJ
1977/CD
through/IN
1979/CD
were/VBD
deductible/JJ
as/IN
premiums/NNS
for/IN
liability/NN
insurance/NN
./.
Polly/NNP
Peck/NNP
International/NNP
Inc./NNP
's/POS
agreement/NN
to/TO
acquire/VB
51/CD
%/NN
of/IN
Sansui/NNP
Electric/NNP
Co./NNP
proves/VBZ
that/IN
foreign/JJ
companies/NNS
can/MD
acquire/VB
Japanese/JJ
companies/NNS
--/:
if/IN
the/DT
alternative/NN
for/IN
the/DT
Japanese/JJ
company/NN
is/VBZ
extinction/NN
./.
Polly/NNP
Peck/NNP
,/,
a/DT
fast-growing/JJ
British/JJ
conglomerate/NN
,/,
will/MD
pay/VB
15.6/CD
billion/CD
yen/NN
$/$
110/CD
million/CD
39/CD
million/CD
new/JJ
shares/NNS
of/IN
Sansui/NNP
,/,
a/DT
well-known/JJ
maker/NN
of/IN
high-fidelity/NN
audio/NN
equipment/NN
that/WDT
failed/VBD
to/TO
adjust/VB
to/TO
changing/VBG
market/NN
conditions/NNS
./.
Japanese/JJ
government/NN
officials/NNS
,/,
eager/JJ
to/TO
rebut/VB
foreign/JJ
criticism/NN
of/IN
Japanese/JJ
investments/NNS
overseas/RB
,/,
hailed/VBD
the/DT
transaction/NN
as/IN
proof/NN
foreigners/NNS
can/MD
make/VB
similar/JJ
investments/NNS
in/IN
Japan/NNP
./.
Polly/NNP
Peck/NNP
's/POS
chairman/NN
,/,
Asil/NNP
Nadir/NNP
,/,
echoed/VBD
the/DT
official/JJ
Japanese/JJ
view/NN
of/IN
the/DT
accord/NN
,/,
which/WDT
was/VBD
announced/VBN
Friday/NNP
./.
``/``
The/DT
myths/NNS
that/IN
Japan/NNP
is/VBZ
not/RB
open/JJ
to/TO
concerns/NNS
from/IN
outside/NN
has/VBZ
,/,
I/PRP
think/VBP
,/,
been/VBN
demolished/VBN
at/IN
a/DT
stroke/NN
,/,
''/''
Mr./NNP
Nadir/NNP
said/VBD
./.
But/CC
analysts/NNS
say/VBP
Sansui/NNP
is/VBZ
a/DT
special/JJ
case/NN
./.
It/PRP
expects/VBZ
to/TO
post/VB
a/DT
loss/NN
of/IN
6.4/CD
billion/CD
yen/NN
for/IN
the/DT
year/NN
ending/VBG
tomorrow/NN
and/CC
its/PRP$
liabilities/NNS
currently/RB
exceed/VBP
its/PRP$
assets/NNS
by/IN
about/IN
13.8/CD
billion/CD
yen/NN
./.
``/``
If/IN
you/PRP
find/VBP
sound/JJ
,/,
healthy/JJ
companies/NNS
in/IN
Japan/NNP
,/,
they/PRP
are/VBP
not/RB
for/IN
sale/NN
,/,
''/''
said/VBD
George/NNP
Watanabe/NNP
,/,
a/DT
management-consultant/NN
at/IN
Tokyo-based/JJ
Asia/NNP
Advisory/NNP
Services/NNPS
Inc/NNP
./.
Statistics/NNS
on/IN
acquisitions/NNS
by/IN
foreigners/NNS
vary/VBP
in/IN
detail/NN
,/,
because/IN
unlike/IN
Sansui/NNP
,/,
which/WDT
is/VBZ
listed/VBN
on/IN
the/DT
Tokyo/NNP
and/CC
Osaka/NNP
stock/NN
exchanges/NNS
,/,
most/JJS
of/IN
the/DT
Japanese/JJ
companies/NNS
acquired/VBN
by/IN
foreigners/NNS
are/VBP
privately/RB
held/VBN
./.
But/CC
by/IN
all/DT
accounts/NNS
foreign/JJ
companies/NNS
have/VBP
bought/VBN
only/RB
a/DT
relative/JJ
handful/NN
of/IN
Japanese/JJ
companies/NNS
this/DT
year/NN
,/,
while/IN
Japanese/JJ
companies/NNS
have/VBP
acquired/VBN
hundreds/NNS
of/IN
foreign/JJ
companies/NNS
./.
Nor/CC
do/VBP
analysts/NNS
expect/VB
the/DT
Sansui/NNP
deal/NN
to/TO
touch/VB
off/IN
a/DT
fresh/JJ
wave/NN
of/IN
foreign/JJ
purchases/NNS
./.
If/IN
the/DT
strong/JJ
yen/NN
and/CC
the/DT
high/JJ
stock/NN
prices/NNS
of/IN
Japanese/JJ
companies/NNS
were/VBD
n't/RB
deterrents/NNS
enough/RB
,/,
webs/NNS
of/IN
cross-shareholdings/NNS
between/IN
friendly/JJ
Japanese/JJ
companies/NNS
and/CC
fiercely/RB
independent/JJ
Japanese/JJ
corporate/JJ
attitudes/NNS
repel/VBP
most/RBS
would-be/JJ
acquirers/NNS
./.
Usually/RB
when/WRB
a/DT
Japanese/JJ
company/NN
is/VBZ
ready/JJ
to/TO
sell/VB
,/,
it/PRP
has/VBZ
few/JJ
alternatives/NNS
remaining/VBG
,/,
and/CC
the/DT
grim/JJ
demeanors/NNS
of/IN
Sansui/NNP
's/POS
directors/NNS
at/IN
a/DT
joint/JJ
news/NN
conference/NN
here/RB
left/VBD
little/JJ
doubt/NN
that/IN
this/DT
was/VBD
not/RB
the/DT
company/NN
's/POS
finest/JJS
hour/NN
./.
Sansui/NNP
was/VBD
once/RB
one/CD
of/IN
Japan/NNP
's/POS
premier/JJR
makers/NNS
of/IN
expensive/JJ
,/,
high-quality/NN
stereo/NN
gear/NN
for/IN
audiophiles/NNS
./.
But/CC
in/IN
recent/JJ
years/NNS
,/,
the/DT
market/NN
has/VBZ
moved/VBN
toward/IN
less/RBR
expensive/JJ
``/``
mini-component/JJ
''/''
sets/NNS
,/,
miniaturized/VBN
amplifiers/NNS
and/CC
receivers/NNS
and/CC
software/NN
players/NNS
that/WDT
could/MD
be/VB
stacked/VBN
on/IN
top/NN
of/IN
each/DT
other/JJ
./.
Some/DT
of/IN
Sansui/NNP
's/POS
fellow/NN
audio-specialty/NN
companies/NNS
,/,
such/JJ
as/IN
Aiwa/NNP
Co./NNP
and/CC
Pioneer/NNP
Electric/NNP
Corp./NNP
,/,
responded/VBD
to/TO
the/DT
challenge/NN
by/IN
quickly/RB
bringing/VBG
out/IN
mini-component/JJ
products/NNS
of/IN
their/PRP$
own/JJ
,/,
by/IN
moving/VBG
heavily/RB
into/IN
the/DT
booming/JJ
compact/JJ
disk/NN
businesses/NNS
or/CC
by/IN
diversifying/VBG
into/IN
other/JJ
consumer-electronics/JJ
fields/NNS
,/,
including/VBG
laser/NN
disks/NNS
or/CC
portable/JJ
cassette/NN
players/NNS
./.
Sansui/NNP
was/VBD
late/JJ
into/IN
the/DT
mini-component/JJ
business/NN
and/CC
failed/VBD
to/TO
branch/VB
into/IN
other/JJ
new/JJ
businesses/NNS
./.
As/IN
the/DT
yen/NN
soared/VBD
in/IN
recent/JJ
years/NNS
,/,
Sansui/NNP
's/POS
deepening/VBG
financial/JJ
problems/NNS
became/VBD
a/DT
vicious/JJ
circle/NN
./.
While/IN
competitors/NNS
moved/VBD
production/NN
offshore/RB
in/IN
response/NN
to/TO
the/DT
sagging/VBG
competitiveness/NN
of/IN
Japanese/JJ
factories/NNS
,/,
Sansui/NNP
lacked/VBD
the/DT
money/NN
to/TO
build/VB
new/JJ
plants/NNS
in/IN
Southeast/NNP
Asia/NNP
./.
``/``
Our/PRP$
company/NN
has/VBZ
not/RB
been/VBN
able/JJ
to/TO
cope/VB
very/RB
effectively/RB
with/IN
''/''
changes/NNS
in/IN
the/DT
marketplace/NN
,/,
said/VBD
Ryosuke/NNP
Ito/NNP
,/,
Sansui/NNP
's/POS
president/NN
./.
But/CC
even/RB
a/DT
Japanese/JJ
company/NN
that/WDT
looks/VBZ
like/IN
a/DT
dog/NN
may/MD
turn/VB
out/IN
to/TO
be/VB
a/DT
good/JJ
investment/NN
for/IN
a/DT
foreign/JJ
concern/NN
,/,
some/DT
management/NN
consultants/NNS
maintain/VBP
./.
Yoshihisa/NNP
Murasawa/NNP
,/,
a/DT
management/NN
consultant/NN
for/IN
Booz-Allen/NNP
&/CC
Hamilton/NNP
Japan/NNP
Inc./NNP
,/,
said/VBD
his/PRP$
firm/NN
will/MD
likely/RB
be/VB
recommending/VBG
acquisitions/NNS
of/IN
Japanese/JJ
companies/NNS
more/RBR
often/RB
to/TO
foreign/JJ
clients/NNS
in/IN
the/DT
future/NN
./.
``/``
Attitudes/NNS
negative/JJ
,/,
but/CC
they/PRP
're/VBP
becoming/VBG
more/RBR
positive/JJ
,/,
''/''
Mr./NNP
Murasawa/NNP
said/VBD
./.
``/``
In/IN
some/DT
industries/NNS
,/,
like/IN
pharmaceuticals/NNS
,/,
acquisitions/NNS
make/VBP
sense/NN
./.
''/''
Whether/NNP
Polly/NNP
Peck/NNP
's/POS
acquisition/NN
makes/VBZ
sense/NN
remains/VBZ
to/TO
be/VB
seen/VBN
,/,
but/CC
at/IN
the/DT
news/NN
conference/NN
,/,
Mr./NNP
Nadir/NNP
brimmed/VBD
with/IN
self-confidence/NN
that/IN
he/PRP
can/MD
turn/VB
Sansui/NNP
around/IN
./.
Sansui/NNP
,/,
he/PRP
said/VBD
,/,
is/VBZ
a/DT
perfect/JJ
fit/NN
for/IN
Polly/NNP
Peck/NNP
's/POS
electronics/NNS
operations/NNS
,/,
which/WDT
make/VBP
televisions/NNS
,/,
videocassette/NN
recorders/NNS
,/,
microwaves/NNS
and/CC
other/JJ
products/NNS
on/IN
an/DT
``/``
original/JJ
equipment/NN
maker/NN
''/''
basis/NN
for/IN
sale/NN
under/IN
other/JJ
companies/NNS
'/POS
brand/NN
names/NNS
./.
He/PRP
said/VBD
Polly/NNP
Peck/NNP
will/MD
greatly/RB
expand/VB
Sansui/NNP
's/POS
product/NN
line/NN
,/,
using/VBG
Sansui/NNP
's/POS
engineers/NNS
to/TO
design/VB
the/DT
new/JJ
products/NNS
,/,
and/CC
will/MD
move/VB
Sansui/NNP
's/POS
production/NN
of/IN
most/JJS
products/NNS
other/JJ
than/IN
sophisticated/JJ
audio/JJ
gear/NN
offshore/RB
into/IN
Polly/NNP
Peck/NNP
's/POS
own/JJ
factories/NNS
./.
``/``
Whatever/WDT
capital/NN
it/PRP
Sansui/NNP
it/PRP
can/MD
compete/VB
and/CC
become/VB
a/DT
totally/RB
global/JJ
entity/NN
capable/JJ
of/IN
competing/VBG
with/IN
the/DT
best/JJS
in/IN
the/DT
world/NN
,/,
that/DT
capital/NN
will/MD
be/VB
injected/VBN
,/,
''/''
Mr./NNP
Nadir/NNP
said/VBD
./.
And/CC
while/IN
Polly/NNP
Peck/NNP
is/VBZ
n't/RB
jettisoning/VBG
the/DT
existent/JJ
top-management/NN
structure/NN
of/IN
Sansui/NNP
,/,
it/PRP
is/VBZ
bringing/VBG
in/IN
a/DT
former/JJ
Toshiba/NNP
Corp./NNP
executive/NN
as/IN
executive/JJ
vice/NN
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
./.
Such/JJ
risk/NN
taking/NN
is/VBZ
an/DT
everyday/JJ
matter/NN
for/IN
the/DT
brash/JJ
Mr./NNP
Nadir/NNP
,/,
who/WP
is/VBZ
25/CD
%/NN
owner/NN
of/IN
Polly/NNP
Peck/NNP
as/RB
well/RB
as/IN
its/PRP$
chairman/NN
./.
He/PRP
took/VBD
Polly/NNP
Peck/NNP
,/,
once/RB
a/DT
small/JJ
fabric/NN
wholesaler/NN
,/,
and/CC
used/VBD
it/PRP
at/IN
as/IN
a/DT
base/NN
to/TO
build/VB
a/DT
conglomerate/NN
that/WDT
has/VBZ
been/VBN
doubling/VBG
its/PRP$
profits/NNS
annually/RB
since/IN
1980/CD
./.
In/IN
September/NNP
,/,
it/PRP
announced/VBD
plans/NNS
to/TO
acquire/VB
the/DT
tropical-fruit/NN
business/NN
of/IN
RJR/NNP
Nabisco/NNP
Inc./NNP
's/POS
Del/NNP
Monte/NNP
foods/NNS
unit/NN
for/IN
#/#
557/CD
million/CD
$/$
878/CD
million/CD
Last/JJ
month/NN
,/,
Polly/NNP
Peck/NNP
posted/VBD
a/DT
38/CD
%/NN
jump/NN
in/IN
pretax/NN
profit/NN
for/IN
the/DT
first/JJ
half/DT
to/TO
#/#
54.8/CD
million/CD
from/IN
#/#
39.8/CD
million/CD
on/IN
a/DT
63/CD
%/NN
rise/NN
in/IN
sales/NNS
./.
Joann/NNP
S./NNP
Lublin/NNP
in/IN
London/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
The/DT
bolstered/VBN
cellular/JJ
agreement/NN
between/IN
BellSouth/NNP
Corp./NNP
and/CC
LIN/NNP
Broadcasting/NNP
Corp./NNP
carries/VBZ
heightened/VBN
risks/NNS
and/CC
could/MD
fail/VB
to/TO
fend/VB
off/IN
McCaw/NNP
Cellular/NNP
Communications/NNPS
Inc./NNP
,/,
the/DT
rival/JJ
suitor/NN
for/IN
LIN/NNP
./.
Moreover/RB
,/,
the/DT
amended/VBN
pact/NN
shows/VBZ
how/WRB
McCaw/NNP
's/POS
persistence/NN
has/VBZ
pushed/VBN
LIN/NNP
and/CC
BellSouth/NNP
into/IN
a/DT
corner/NN
,/,
forcing/VBG
huge/JJ
debt/NN
on/IN
the/DT
proposed/VBN
new/JJ
company/NN
./.
The/DT
debt/NN
,/,
estimated/VBN
at/IN
$/$
4.7/CD
billion/CD
,/,
could/MD
mortgage/VB
the/DT
cellular/JJ
company/NN
's/POS
future/NN
earning/VBG
power/NN
in/IN
order/NN
to/TO
placate/VB
some/DT
LIN/NNP
holders/NNS
in/IN
the/DT
short/JJ
term/NN
./.
The/DT
plan/NN
still/RB
calls/VBZ
for/IN
LIN/NNP
to/TO
combine/VB
its/PRP$
cellular/JJ
telephone/NN
properties/NNS
with/IN
BellSouth/NNP
's/POS
and/CC
to/TO
spin/VB
off/IN
its/PRP$
broadcasting/VBG
operations/NNS
./.
But/CC
under/IN
new/JJ
terms/NNS
of/IN
the/DT
agreement/NN
,/,
announced/VBN
Friday/NNP
,/,
LIN/NNP
holders/NNS
would/MD
receive/VB
a/DT
special/JJ
cash/NN
dividend/NN
of/IN
$/$
42/CD
a/DT
share/NN
,/,
representing/VBG
a/DT
payout/NN
of/IN
about/IN
$/$
2.23/CD
billion/CD
,/,
shortly/RB
before/IN
the/DT
proposed/VBN
merger/NN
./.
LIN/NNP
said/VBD
it/PRP
expects/VBZ
to/TO
borrow/VB
the/DT
money/NN
to/TO
pay/VB
the/DT
dividend/NN
,/,
but/CC
commitments/NNS
from/IN
banks/NNS
still/RB
have/VBP
n't/RB
been/VBN
obtained/VBN
./.
Under/IN
previous/JJ
terms/NNS
,/,
holders/NNS
would/MD
have/VB
received/VBN
a/DT
dividend/NN
of/IN
only/RB
$/$
20/CD
a/DT
share/NN
./.
In/IN
addition/NN
,/,
New/NNP
York-based/JJ
LIN/NNP
would/MD
exercise/VB
its/PRP$
right/NN
to/TO
buy/VB
out/IN
for/IN
$/$
1.9/CD
billion/CD
the/DT
55/CD
%/NN
equity/NN
interest/NN
of/IN
its/PRP$
partner/NN
,/,
Metromedia/NNP
Co./NNP
,/,
in/IN
a/DT
New/NNP
York/NNP
cellular/JJ
franchise/NN
./.
That/DT
money/NN
also/RB
would/MD
have/VB
to/TO
be/VB
borrowed/VBN
./.
In/IN
effect/NN
,/,
McCaw/NNP
has/VBZ
forced/VBN
LIN/NNP
's/POS
hand/NN
by/IN
bidding/NN
$/$
1.9/CD
billion/CD
for/IN
the/DT
stake/NN
earlier/RBR
this/DT
month/NN
./.
``/``
We/PRP
're/VBP
taking/VBG
on/IN
more/JJR
debt/NN
than/IN
we/PRP
would/MD
have/VB
liked/VBN
to/TO
,/,
''/''
acknowledged/VBD
Michael/NNP
Plouf/NNP
,/,
LIN/NNP
's/POS
vice/NN
president/NN
and/CC
treasurer/NN
./.
Although/IN
he/PRP
expressed/VBD
confidence/NN
that/IN
the/DT
proposed/VBN
new/JJ
company/NN
's/POS
cash/NN
flow/NN
would/MD
be/VB
sufficient/JJ
to/TO
cover/VB
interest/NN
payments/NNS
on/IN
the/DT
debt/NN
,/,
he/PRP
estimated/VBD
that/IN
the/DT
company/NN
would/MD
n't/RB
be/VB
profitable/JJ
until/IN
1994/CD
or/CC
later/RB
./.
Analyst/NN
estimate/VBP
the/DT
value/NN
of/IN
the/DT
BellSouth/NNP
proposal/NN
at/IN
about/IN
$/$
115/CD
to/TO
$/$
125/CD
a/DT
share/NN
./.
They/PRP
value/VBP
McCaw/NNP
's/POS
bid/NN
at/IN
$/$
112/CD
to/TO
$/$
118/CD
a/DT
share/NN
./.
The/DT
previous/JJ
BellSouth/NNP
pact/NN
was/VBD
valued/VBN
at/IN
about/IN
$/$
98/CD
to/TO
$/$
110/CD
a/DT
share/NN
./.
McCaw/NNP
,/,
the/DT
largest/JJS
provider/NN
of/IN
cellular/JJ
telephone/NN
service/NN
in/IN
the/DT
U.S./NNP
,/,
already/RB
owns/VBZ
about/IN
9.4/CD
%/NN
of/IN
LIN/NNP
's/POS
stock/NN
./.
In/IN
response/NN
to/TO
BellSouth/NNP
's/POS
amended/VBN
pact/NN
,/,
the/DT
Kirkland/NNP
,/,
Wash./NNP
,/,
company/NN
extended/VBD
its/PRP$
own/JJ
offer/NN
to/TO
buy/VB
22/CD
million/CD
LIN/NNP
shares/NNS
for/IN
$/$
125/CD
apiece/RB
,/,
which/WDT
would/MD
give/VB
McCaw/NNP
a/DT
50.3/CD
%/NN
controlling/VBG
interest/NN
./.
Over/IN
the/DT
weekend/NN
,/,
McCaw/NNP
continued/VBD
to/TO
call/VB
for/IN
an/DT
auction/NN
of/IN
LIN/NNP
./.
Analysts/NNS
said/VBD
they/PRP
expect/VBP
McCaw/NNP
to/TO
escalate/VB
the/DT
bidding/NN
again/RB
./.
``/``
This/DT
game/NN
is/VBZ
n't/RB
over/IN
yet/RB
,/,
''/''
said/VBD
Joel/NNP
D./NNP
Gross/NNP
,/,
a/DT
vice/NN
president/NN
at/IN
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
Securities/NNPS
Corp/NNP
./.
``/``
At/IN
some/DT
point/NN
,/,
it/PRP
will/MD
become/VB
non-economical/JJ
for/IN
one/CD
company/NN
./.
But/CC
I/PRP
do/VBP
n't/RB
think/VB
we/PRP
're/VBP
at/IN
that/DT
point/NN
yet/RB
./.
''/''
Under/IN
its/PRP$
revised/VBN
proposal/NN
,/,
Atlanta-based/JJ
BellSouth/NNP
would/MD
have/VB
a/DT
50/CD
%/NN
interest/NN
in/IN
the/DT
new/JJ
cellular/JJ
company/NN
and/CC
would/MD
be/VB
responsible/JJ
for/IN
half/DT
of/IN
its/PRP$
debt/NN
./.
To/TO
sweeten/VB
the/DT
pact/NN
further/RB
--/:
and/CC
to/TO
ease/VB
concerns/NNS
of/IN
institutional/JJ
investors/NNS
--/:
BellSouth/NNP
added/VBD
a/DT
provision/NN
designed/VBN
to/TO
give/VB
extra/JJ
protection/NN
to/TO
holders/NNS
if/IN
the/DT
regional/JJ
Bell/NNP
company/NN
ever/RB
decides/VBZ
to/TO
buy/VB
the/DT
rest/NN
of/IN
the/DT
new/JJ
cellular/JJ
company/NN
./.
The/DT
provision/NN
,/,
described/VBN
as/IN
``/``
back-end/JJ
''/''
protection/NN
,/,
would/MD
require/VB
BellSouth/NNP
to/TO
pay/VB
a/DT
price/NN
equivalent/JJ
to/TO
what/WP
an/DT
outside/JJ
party/NN
might/MD
have/VB
to/TO
pay/VB
./.
McCaw/NNP
's/POS
bid/NN
also/RB
has/VBZ
a/DT
similar/JJ
clause/NN
./.
Only/RB
McCaw/NNP
's/POS
proposal/NN
requires/VBZ
the/DT
company/NN
to/TO
begin/VB
an/DT
auction/NN
process/NN
in/IN
June/NNP
1994/CD
for/IN
remaining/VBG
shares/NNS
at/IN
third-party/JJ
prices/NNS
./.
To/TO
mollify/VB
shareholders/NNS
concerned/VBN
about/IN
the/DT
long-term/JJ
value/NN
of/IN
the/DT
company/NN
under/IN
the/DT
BellSouth-LIN/JJ
agreement/NN
,/,
BellSouth/NNP
also/RB
agreed/VBD
to/TO
pay/VB
as/RB
much/RB
as/IN
$/$
10/CD
a/DT
share/NN
,/,
or/CC
$/$
540/CD
million/CD
,/,
if/IN
,/,
after/IN
five/CD
years/NNS
,/,
the/DT
trading/NN
value/NN
of/IN
the/DT
new/JJ
cellular/JJ
company/NN
is/VBZ
n't/RB
as/RB
high/JJ
as/IN
the/DT
value/NN
that/WDT
shareholders/NNS
would/MD
have/VB
realized/VBN
from/IN
the/DT
McCaw/NNP
offer/NN
./.
``/``
We/PRP
're/VBP
very/RB
pleased/JJ
with/IN
the/DT
new/JJ
deal/NN
./.
We/PRP
did/VBD
n't/RB
expect/VB
BellSouth/NNP
to/TO
be/VB
so/RB
responsive/JJ
,/,
''/''
said/VBD
Frederick/NNP
A./NNP
Moran/NNP
,/,
president/NN
of/IN
Moran/NNP
Asset/NNP
Management/NNP
Inc./NNP
,/,
which/WDT
holds/VBZ
500,000/CD
LIN/NNP
shares/NNS
./.
BellSouth/NNP
's/POS
``/``
back-end/JJ
protection/NN
was/VBD
flawed/VBN
previously/RB
./.
We/PRP
think/VBP
this/DT
is/VBZ
a/DT
superior/JJ
deal/NN
to/TO
McCaw/NNP
's/POS
./.
We/PRP
're/VBP
surprised/VBN
./.
We/PRP
did/VBD
n't/RB
think/VB
a/DT
sleeping/VBG
Bell/NNP
mentality/NN
would/MD
be/VB
willing/JJ
to/TO
take/VB
on/IN
dilution/NN
./.
''/''
But/CC
Kenneth/NNP
Leon/NNP
,/,
a/DT
telecommunications/NNS
analyst/NN
with/IN
Bear/NNP
,/,
Stearns/NNP
&/CC
Co./NNP
,/,
finds/VBZ
the/DT
BellSouth/NNP
proposal/NN
still/RB
flawed/VBN
because/IN
the/DT
company/NN
does/VBZ
n't/RB
have/VB
to/TO
wait/VB
five/CD
years/NNS
to/TO
begin/VB
buying/VBG
more/JJR
LIN/NNP
shares/NNS
./.
``/``
How/WRB
many/JJ
shares/NNS
will/MD
be/VB
around/IN
in/IN
1995/CD
?/.
''/''
he/PRP
asked/VBD
./.
``/``
There/EX
's/VBZ
nothing/NN
preventing/VBG
BellSouth/NNP
from/IN
buying/VBG
up/RP
shares/NNS
in/IN
the/DT
meanwhile/NN
./.
''/''
BellSouth/NNP
's/POS
revised/VBN
proposal/NN
surprised/VBD
many/JJ
industry/NN
analysts/NNS
,/,
especially/RB
because/IN
of/IN
the/DT
company/NN
's/POS
willingness/NN
to/TO
accept/VB
some/DT
dilution/NN
of/IN
future/JJ
earnings/NNS
./.
William/NNP
O./NNP
McCoy/NNP
,/,
president/NN
of/IN
the/DT
company/NN
's/POS
BellSouth/NNP
Enterprises/NNPS
Inc./NNP
unit/NN
,/,
said/VBD
the/DT
revised/VBN
agreement/NN
with/IN
LIN/NNP
would/MD
dilute/VB
BellSouth/NNP
earnings/NNS
by/IN
about/IN
9/CD
%/NN
in/IN
both/DT
1990/CD
and/CC
1991/CD
and/CC
by/IN
significantly/RB
less/RBR
thereafter/RB
./.
Indeed/RB
,/,
BellSouth/NNP
's/POS
cellular/JJ
operations/NNS
were/VBD
among/IN
the/DT
first/JJ
in/IN
the/DT
country/NN
to/TO
become/VB
profitable/JJ
./.
For/IN
1988/CD
,/,
BellSouth/NNP
earned/VBD
$/$
1.7/CD
billion/CD
,/,
or/CC
$/$
3.51/CD
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
13.6/CD
billion/CD
./.
Analysts/NNS
were/VBD
predicting/VBG
1990/CD
BellSouth/NNP
earnings/NNS
in/IN
the/DT
range/NN
of/IN
$/$
3.90/CD
a/DT
share/NN
,/,
or/CC
$/$
1.9/CD
billion/CD
,/,
but/CC
now/RB
those/DT
estimates/NNS
are/VBP
being/VBG
scaled/VBN
back/RB
./.
In/IN
composite/JJ
trading/NN
Friday/NNP
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
BellSouth/NNP
shares/NNS
fell/VBD
87.5/CD
cents/NNS
to/TO
$/$
52.125/CD
./.
In/IN
national/JJ
over-the-counter/JJ
trading/NN
,/,
LIN/NNP
shares/NNS
soared/VBD
$/$
4.625/CD
to/TO
closed/VBD
at/IN
$/$
112.625/CD
,/,
while/IN
McCaw/NNP
fell/VBD
$/$
2.50/CD
a/DT
share/NN
to/TO
$/$
37.75/CD
./.
The/DT
proposed/VBN
BellSouth-LIN/NNP
cellular/JJ
company/NN
,/,
including/VBG
the/DT
newly/RB
acquired/VBN
Metromedia/NNP
stake/NN
,/,
would/MD
give/VB
the/DT
new/JJ
entity/NN
55/CD
million/CD
potential/JJ
customers/NNS
,/,
including/VBG
about/IN
35/CD
million/CD
in/IN
the/DT
nation/NN
's/POS
top/JJ
10/CD
markets/NNS
./.
Mr./NNP
Leon/NNP
of/IN
Bear/NNP
Stearns/NNP
speculated/VBD
that/IN
McCaw/NNP
,/,
in/IN
an/DT
attempt/NN
to/TO
buy/VB
time/NN
,/,
might/MD
consider/VB
filing/VBG
an/DT
antitrust/JJ
suit/NN
against/IN
BellSouth/NNP
with/IN
the/DT
Justice/NNP
Department/NNP
and/CC
U.S./NNP
District/NNP
Judge/NNP
Harold/NNP
Greene/NNP
,/,
who/WP
oversees/VBZ
enforcement/NN
of/IN
the/DT
consent/NN
decree/NN
that/WDT
broke/VBD
up/IN
the/DT
Bell/NNP
system/NN
in/IN
1984/CD
./.
Indeed/RB
,/,
McCaw/NNP
seemed/VBD
to/TO
hint/VB
at/IN
that/DT
option/NN
in/IN
a/DT
brief/JJ
statement/NN
./.
Urging/NNP
LIN/NNP
directors/NNS
to/TO
conduct/VB
``/``
a/DT
fair/JJ
auction/NN
on/IN
a/DT
level/NN
playing/VBG
field/NN
,/,
''/''
McCaw/NNP
asked/VBD
how/WRB
well/RB
the/DT
public/JJ
interest/NN
would/MD
be/VB
served/VBN
``/``
with/IN
the/DT
Bell/NNP
operating/VBG
companies/NNS
controlling/VBG
over/IN
94/CD
%/NN
of/IN
all/DT
cellular/JJ
potential/JJ
customers/NNS
the/DT
nation/NN
's/POS
top/JJ
10/CD
markets/NNS
./.
''/''
Market/NN
makers/NNS
in/IN
Nasdaq/NNP
over-the-counter/JJ
stocks/NNS
are/VBP
adding/VBG
their/PRP$
voices/NNS
to/TO
the/DT
swelling/VBG
chorus/NN
of/IN
complaints/NNS
about/IN
program/NN
trading/NN
./.
Their/PRP$
motivation/NN
,/,
however/RB
,/,
has/VBZ
a/DT
strong/JJ
practical/JJ
aspect/NN
:/:
Program/NN
trading/NN
is/VBZ
hazardous/JJ
to/TO
their/PRP$
paychecks/NNS
./.
The/DT
most/RBS
controversial/JJ
form/NN
of/IN
program/NN
trading/NN
,/,
stock-index/NN
arbitrage/NN
,/,
is/VBZ
``/``
making/VBG
it/PRP
tough/JJ
for/IN
traders/NNS
to/TO
make/VB
money/NN
,/,
''/''
declares/VBZ
Robert/NNP
Antolini/NNP
,/,
head/NN
of/IN
OTC/NNP
trading/NN
at/IN
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
./.
Stock-index/NN
arbitrage/NN
--/:
the/DT
computer-guided/JJ
buying/NN
and/CC
selling/NN
of/IN
stocks/NNS
with/IN
offsetting/VBG
trades/NNS
in/IN
stock-index/NN
futures/NNS
to/TO
profit/VB
from/IN
fleeting/JJ
price/NN
discrepancies/NNS
--/:
affects/VBZ
the/DT
OTC/NNP
market/NN
directly/RB
through/IN
the/DT
31/CD
stocks/NNS
included/VBN
in/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
500-stock/JJ
index/NN
./.
The/DT
S&P/NNP
500/CD
is/VBZ
often/RB
used/VBN
in/IN
arbitrage/NN
strategies/NNS
./.
The/DT
portion/NN
of/IN
OTC/NNP
volume/NN
attributable/JJ
to/TO
program/NN
trading/NN
is/VBZ
n't/RB
known/VBN
,/,
as/IN
it/PRP
is/VBZ
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
where/WRB
it/PRP
amounted/VBD
to/TO
more/JJR
than/IN
13/CD
%/NN
in/IN
September/NNP
./.
Estimates/NNS
from/IN
traders/NNS
put/VBD
it/PRP
at/IN
less/JJR
than/IN
5/CD
%/NN
of/IN
Nasdaq/NNP
's/POS
average/JJ
daily/JJ
volume/NN
of/IN
roughly/RB
133/CD
million/CD
shares/NNS
./.
Other/JJ
market-maker/NN
gripes/NNS
:/:
Program/NN
trading/NN
also/RB
causes/VBZ
the/DT
Nasdaq/NNP
Composite/NNP
Index/NNP
to/TO
lose/VB
ground/NN
against/IN
other/JJ
segments/NNS
of/IN
the/DT
stock/NN
market/NN
./.
Because/IN
of/IN
program/NN
trading/NN
it/PRP
is/VBZ
more/RBR
difficult/JJ
to/TO
trade/VB
many/JJ
OTC/NNP
stocks/NNS
without/IN
sharp/JJ
price/NN
moves/NNS
,/,
a/DT
condition/NN
known/VBN
as/IN
illiquidity/NN
./.
Moreover/RB
,/,
the/DT
price/NN
volatility/NN
that/WDT
is/VBZ
amplified/VBN
by/IN
program/NN
trading/NN
is/VBZ
undercutting/VBG
efforts/NNS
to/TO
woo/VB
individual/JJ
investors/NNS
back/RB
to/TO
an/DT
OTC/NNP
market/NN
that/WDT
sorely/RB
misses/VBZ
them/PRP
./.
Some/DT
of/IN
these/DT
problems/NNS
are/VBP
neither/DT
new/JJ
nor/CC
unique/JJ
to/TO
the/DT
OTC/NNP
market/NN
./.
But/CC
the/DT
big/JJ
,/,
often/RB
tumultuous/JJ
slide/NN
in/IN
stock/NN
prices/NNS
this/DT
month/NN
has/VBZ
turned/VBN
some/DT
of/IN
those/DT
who/WP
have/VBP
been/VBN
profiting/VBG
from/IN
the/DT
practice/NN
against/IN
it/PRP
./.
Peter/NNP
DaPuzzo/NNP
,/,
head/NN
of/IN
retail/JJ
equity/NN
trading/NN
at/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
,/,
acknowledges/VBZ
that/IN
he/PRP
was/VBD
n't/RB
troubled/JJ
by/IN
program/NN
trading/NN
when/WRB
it/PRP
began/VBD
in/IN
the/DT
pre-crash/JJ
bull/NN
market/NN
because/IN
it/PRP
added/VBD
liquidity/NN
and/CC
people/NNS
were/VBD
pleased/JJ
to/TO
see/VB
stock/NN
prices/NNS
rising/NN
./.
``/``
We/PRP
were/VBD
n't/RB
as/RB
concerned/VBN
until/IN
they/PRP
became/VBD
sell/NN
programs/NNS
,/,
''/''
says/VBZ
Mr./NNP
DaPuzzo/NNP
,/,
who/WP
now/RB
thinks/VBZ
it/PRP
adds/VBZ
unnecessary/JJ
volatility/NN
./.
Shearson/NNP
Lehman/NNP
,/,
however/RB
,/,
executes/VBZ
program/NN
trades/NNS
for/IN
clients/NNS
./.
Merrill/NNP
Lynch/NNP
,/,
Goldman/NNP
Sachs/NNP
and/CC
Kidder/NNP
Peabody/NNP
,/,
in/IN
addition/NN
to/TO
Shearson/NNP
,/,
do/VBP
program-trade/JJ
OTC/NNP
stocks/NNS
./.
Shearson/NNP
,/,
Merrill/NNP
Lynch/NNP
and/CC
Goldman/NNP
Sachs/NNP
say/VBP
they/PRP
do/VBP
so/RB
only/RB
for/IN
customers/NNS
,/,
however/RB
./.
Kidder/NNP
Peabody/NNP
does/VBZ
program/NN
trading/NN
for/IN
its/PRP$
own/JJ
as/RB
well/RB
as/IN
clients/NNS
'/POS
accounts/NNS
./.
Of/IN
course/NN
,/,
there/EX
were/VBD
sell/NN
programs/NNS
in/IN
past/JJ
years/NNS
,/,
too/RB
,/,
but/CC
they/PRP
seem/VBP
to/TO
hurt/VB
market/NN
makers/NNS
more/RBR
painfully/RB
these/DT
days/NNS
./.
That/DT
's/VBZ
largely/RB
because/IN
of/IN
defensive/JJ
measures/NNS
they/PRP
adopted/VBD
after/IN
the/DT
1987/CD
crash/NN
,/,
when/WRB
individual/JJ
investors/NNS
fled/VBD
the/DT
market/NN
and/CC
trading/NN
activity/NN
dwindled/VBD
./.
Market/NN
makers/NNS
,/,
to/TO
cut/VB
costs/NNS
,/,
slashed/VBD
inventories/NNS
of/IN
stocks/NNS
they/PRP
keep/VBP
on/IN
hand/NN
to/TO
sell/VB
investors/NNS
when/WRB
other/JJ
holders/NNS
are/VBP
n't/RB
selling/VBG
./.
And/CC
to/TO
protect/VB
their/PRP$
reduced/VBN
capital/NN
investment/NN
from/IN
eroding/VBG
further/RB
,/,
market/NN
makers/NNS
became/VBD
quicker/RBR
to/TO
lower/VB
price/NN
quotes/NNS
when/WRB
sell/NN
programs/NNS
are/VBP
in/IN
progress/NN
./.
On/IN
days/NNS
when/WRB
prices/NNS
are/VBP
tumbling/VBG
,/,
they/PRP
must/MD
be/VB
willing/JJ
to/TO
buy/VB
shares/NNS
from/IN
sellers/NNS
when/WRB
no/DT
one/NN
else/RB
will/MD
./.
In/IN
such/PDT
an/DT
environment/NN
,/,
market/NN
makers/NNS
can/MD
suffer/VB
huge/JJ
losses/NNS
both/DT
on/IN
trades/NNS
made/VBN
that/DT
day/NN
at/IN
steadily/RB
dropping/VBG
prices/NNS
and/CC
in/IN
the/DT
value/NN
of/IN
their/PRP$
inventories/NNS
of/IN
shares/NNS
./.
``/``
It/PRP
makes/VBZ
no/DT
sense/NN
for/IN
us/PRP
to/TO
put/VB
money/NN
at/IN
risk/NN
when/WRB
you/PRP
know/VBP
you/PRP
're/VBP
going/VBG
to/TO
lose/VB
,/,
''/''
says/VBZ
Mr./NNP
Antolini/NNP
,/,
of/IN
Donaldson/NNP
Lufkin/NNP
./.
But/CC
this/DT
skittishness/NN
,/,
Mr./NNP
Antolini/NNP
says/VBZ
,/,
is/VBZ
creating/VBG
liquidity/NN
problems/NNS
in/IN
certain/JJ
OTC/NNP
stocks/NNS
./.
``/``
It/PRP
's/VBZ
harder/JJR
to/TO
sell/VB
stocks/NNS
when/WRB
the/DT
sell/NN
programs/NNS
come/VBD
in/IN
because/IN
some/DT
market/NN
makers/NNS
do/VBP
n't/RB
want/VB
to/TO
{/(
take/VB
the/DT
orders/NNS
No/DT
one/NN
has/VBZ
big/JJ
positions/NNS
and/CC
no/DT
one/NN
wants/VBZ
to/TO
take/VB
big/JJ
risks/NNS
./.
''/''
Joseph/NNP
Hardiman/NNP
,/,
president/NN
of/IN
the/DT
National/NNP
Association/NNP
of/IN
Securities/NNPS
Dealers/NNPS
,/,
which/WDT
oversees/VBZ
trading/NN
on/IN
Nasdaq/NNP
,/,
agrees/VBZ
that/IN
program/NN
trading/NN
is/VBZ
hurting/VBG
the/DT
market/NN
's/POS
efforts/NNS
to/TO
bring/VB
back/RB
small/JJ
investors/NNS
./.
But/CC
,/,
he/PRP
observes/VBZ
,/,
while/IN
makers/NNS
suffer/VBP
losses/NNS
when/WRB
program/NN
trading/NN
drags/VBZ
the/DT
market/NN
down/RP
,/,
they/PRP
also/RB
make/VBP
money/NN
when/WRB
program/NN
trading/NN
pushes/VBZ
the/DT
prices/NNS
higher/RBR
./.
``/``
Sometimes/RB
{/(
traders/NNS
sight/NN
of/IN
that/DT
,/,
''/''
he/PRP
says/VBZ
./.
The/DT
OTC/NNP
stocks/NNS
in/IN
the/DT
S&P/NNP
500/CD
include/VBP
Nasdaq/NNP
's/POS
biggest/JJS
,/,
such/JJ
as/IN
Apple/NNP
Computer/NNP
,/,
MCI/NNP
Communications/NNPS
,/,
Tele-Communications/NNPS
and/CC
Liz/NNP
Claiborne/NNP
./.
These/DT
big/JJ
stocks/NNS
greatly/RB
influence/VBP
the/DT
Nasdaq/NNP
Composite/NNP
Index/NNP
./.
When/WRB
the/DT
computers/NNS
say/VBP
``/``
sell/VB
,/,
''/''
the/DT
composite/JJ
tumbles/VBZ
as/RB
well/RB
as/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
./.
The/DT
problem/NN
,/,
market/NN
makers/NNS
say/VBP
,/,
is/VBZ
that/IN
while/IN
the/DT
industrial/JJ
average/NN
and/CC
the/DT
S&P/NNP
500/CD
usually/RB
recover/VBP
as/IN
buy/NN
programs/NNS
kick/VBP
in/IN
,/,
the/DT
Nasdaq/NNP
Composite/NNP
frequently/RB
is/VBZ
left/VBN
behind/IN
./.
Eight/CD
trading/NN
days/NNS
after/IN
Oct./NNP
12/CD
,/,
the/DT
day/NN
before/IN
the/DT
stock/NN
market/NN
plunge/NN
,/,
for/IN
instance/NN
,/,
the/DT
Nasdaq/NNP
Composite/NNP
had/VBD
fallen/VBN
4.3/CD
%/NN
,/,
compared/VBN
with/IN
3.3/CD
%/NN
for/IN
the/DT
S&P/NNP
500/CD
,/,
3.5/CD
%/NN
for/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
Composite/NNP
Index/NNP
and/CC
3.6/CD
%/NN
for/IN
the/DT
industrial/JJ
average/NN
./.
This/DT
gap/NN
eventually/RB
closes/VBZ
,/,
but/CC
slowly/RB
./.
Three/CD
days/NNS
later/RB
,/,
as/IN
of/IN
Friday/NNP
's/POS
close/NN
,/,
the/DT
Nasdaq/NNP
Composite/NNP
was/VBD
down/RB
6/CD
%/NN
,/,
compared/VBN
with/IN
5.9/CD
%/NN
for/IN
the/DT
industrial/JJ
average/NN
,/,
5.7/CD
%/NN
for/IN
the/DT
S&P/NNP
500/CD
and/CC
5.8/CD
%/NN
for/IN
the/DT
Big/NNP
Board/NNP
Composite/NNP
./.
The/DT
main/JJ
reason/NN
for/IN
this/DT
lag/NN
is/VBZ
that/IN
individual/JJ
investors/NNS
own/JJ
65/CD
%/NN
of/IN
the/DT
OTC/NNP
market/NN
's/POS
capitalization/NN
,/,
according/VBG
to/TO
Mr./NNP
Hardiman/NNP
,/,
much/RB
more/JJR
than/IN
on/IN
the/DT
Big/NNP
Board/NNP
./.
Such/JJ
investors/NNS
tend/VBP
to/TO
be/VB
more/RBR
cautious/JJ
than/IN
institutional/JJ
investors/NNS
are/VBP
about/IN
re-entering/VBG
the/DT
market/NN
after/IN
massive/JJ
selloffs/NNS
,/,
market/NN
makers/NNS
say/VBP
./.
Friday/NNP
's/POS
Market/NNP
Activity/NNP
The/DT
Nasdaq/NNP
Composite/NNP
Index/NNP
tumbled/VBD
5.39/CD
,/,
or/CC
1.2/CD
%/NN
to/TO
452.76/CD
on/IN
Friday/NNP
./.
For/IN
the/DT
week/NN
,/,
the/DT
index/NN
dropped/VBD
3.8/CD
%/NN
./.
Weakness/NN
in/IN
big/JJ
technology/NN
stocks/NNS
hurt/VBP
the/DT
composite/NN
as/RB
well/RB
as/IN
the/DT
Nasdaq/NNP
100/CD
Index/NNP
,/,
which/WDT
fell/VBD
1.4/CD
%/NN
,/,
or/CC
6.43/CD
,/,
on/IN
Friday/NNP
,/,
to/TO
437.68/CD
./.
The/DT
Nasdaq/NNP
Financial/NNP
Index/NNP
lost/VBD
about/IN
1/CD
%/NN
,/,
or/CC
3.95/CD
,/,
to/TO
448.80/CD
./.
Friday/NNP
's/POS
trading/NN
volume/NN
totaled/VBD
132.8/CD
million/CD
shares/NNS
./.
The/DT
average/JJ
daily/JJ
share/NN
turnover/NN
for/IN
October/NNP
is/VBZ
almost/RB
148/CD
million/CD
shares/NNS
./.
LIN/NNP
Broadcasting/NNP
surged/VBD
4/CD
5\/8/CD
to/TO
112/CD
5\/8/CD
;/:
LIN/NNP
and/CC
BellSouth/NNP
sweetened/VBD
their/PRP$
merger/NN
agreement/NN
in/IN
an/DT
attempt/NN
to/TO
keep/VB
shareholders/NNS
from/IN
tendering/VBG
their/PRP$
shares/NNS
to/TO
McCaw/NNP
Cellular/NNP
Communications/NNPS
./.
McCaw/NNP
,/,
which/WDT
dropped/VBD
2/CD
1\/2/CD
to/TO
37/CD
3\/4/CD
,/,
has/VBZ
offered/VBN
$/$
125/CD
a/DT
share/NN
for/IN
a/DT
majority/NN
of/IN
LIN/NNP
's/POS
shares/NNS
./.
The/DT
revised/VBN
LIN-BellSouth/NNP
agreement/NN
boosts/VBZ
the/DT
dollar/NN
amount/NN
of/IN
the/DT
special/JJ
dividend/NN
LIN/NNP
promises/VBZ
to/TO
pay/VB
shareholders/NNS
./.
LIN/NNP
now/RB
plans/VBZ
to/TO
dole/VB
out/IN
$/$
42/CD
a/DT
share/NN
in/IN
cash/NN
,/,
up/RB
from/IN
the/DT
earlier/JJR
$/$
20/CD
amount/NN
./.
Intel/NNP
eased/VBD
1\/8/CD
to/TO
31/CD
7\/8/CD
./.
The/DT
semiconductor/NN
concern/NN
said/VBD
the/DT
interruption/NN
in/IN
shipment/NN
of/IN
its/PRP$
80486/CD
computer/NN
chip/NN
will/MD
be/VB
brief/JJ
and/CC
have/VB
little/JJ
impact/NN
on/IN
the/DT
company/NN
's/POS
earnings/NNS
./.
The/DT
stock/NN
fell/VBD
7\/8/CD
Thursday/NNP
amid/IN
concerns/NNS
over/IN
problems/NNS
discovered/VBN
with/IN
the/DT
chip/NN
./.
Intel/NNP
told/VBD
analysts/NNS
that/IN
the/DT
company/NN
will/MD
resume/VB
shipments/NNS
of/IN
the/DT
chips/NNS
within/IN
two/CD
to/TO
three/CD
weeks/NNS
./.
Weisfield/NNP
's/POS
rocketed/VBD
9/CD
1\/2/CD
to/TO
39/CD
after/IN
the/DT
jewelry/NN
store/NN
operator/NN
said/VBD
it/PRP
is/VBZ
in/IN
preliminary/JJ
discussions/NNS
,/,
with/IN
a/DT
party/NN
it/PRP
would/MD
n't/RB
identify/VB
,/,
regarding/VBG
the/DT
possible/JJ
acquisition/NN
of/IN
the/DT
company/NN
./.
Starpointe/NNP
Savings/NNP
Bank/NNP
rose/VBD
3/CD
to/TO
20/CD
after/IN
the/DT
Federal/NNP
Deposit/NNP
Insurance/NNP
Corp./NNP
approved/VBD
Dime/NNP
Savings/NNP
Bank/NNP
of/IN
New/NNP
York/NNP
's/POS
$/$
21-a-share/JJ
acquisition/NN
of/IN
Starpointe/NNP
./.
Kirschner/NNP
Medical/NNP
fell/VBD
4/CD
to/TO
15/CD
./.
The/DT
company/NN
said/VBD
its/PRP$
third-quarter/NN
earnings/NNS
will/MD
probably/RB
be/VB
lower/JJR
than/IN
the/DT
16/CD
cents/NNS
a/DT
share/NN
it/PRP
reported/VBD
last/JJ
year/NN
,/,
despite/IN
a/DT
rise/NN
in/IN
the/DT
company/NN
's/POS
revenue/NN
./.
Kirschner/NNP
earned/VBD
$/$
376,000/CD
on/IN
revenue/NN
of/IN
$/$
14.5/CD
million/CD
in/IN
the/DT
1988/CD
quarter/NN
./.
The/DT
company/NN
blamed/VBD
a/DT
number/NN
of/IN
factors/NNS
for/IN
the/DT
earnings/NNS
decline/NN
,/,
including/VBG
softer/JJR
sales/NNS
of/IN
joint-implants/NNS
./.
London/NNP
share/NN
prices/NNS
closed/VBD
sharply/RB
lower/JJR
Friday/NNP
in/IN
active/JJ
trading/NN
after/IN
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
Nigel/NNP
Lawson/NNP
's/POS
resignation/NN
slapped/VBD
the/DT
market/NN
and/CC
Wall/NNP
Street/NNP
's/POS
rapid/JJ
initial/JJ
sell-off/NN
knocked/VBD
it/PRP
down/RP
./.
London/NNP
shares/NNS
were/VBD
depressed/VBN
initially/RB
by/IN
overnight/JJ
losses/NNS
in/IN
New/NNP
York/NNP
and/CC
by/IN
the/DT
drop/NN
in/IN
sterling/NN
after/IN
Mr./NNP
Lawson/NNP
's/POS
resignation/NN
./.
It/PRP
showed/VBD
some/DT
early/JJ
resilience/NN
after/IN
central/JJ
bank/NN
support/NN
firmed/VBD
sterling/JJ
,/,
but/CC
the/DT
weight/NN
of/IN
Wall/NNP
Street/NNP
late/RB
in/IN
London/NNP
trading/NN
,/,
and/CC
signs/NNS
of/IN
further/JJ
weakness/NN
in/IN
the/DT
British/JJ
pound/NN
,/,
proved/VBD
a/DT
hefty/JJ
load/NN
to/TO
bear/VB
./.
New/NNP
York/NNP
stocks/NNS
recovered/VBD
some/DT
of/IN
their/PRP$
losses/NNS
after/IN
the/DT
London/NNP
market/NN
closed/VBD
./.
The/DT
Financial/NNP
Times/NNP
100-share/JJ
index/NN
shed/VBD
47.3/CD
points/NNS
to/TO
close/VB
at/IN
2082.1/CD
,/,
down/RB
4.5/CD
%/NN
from/IN
the/DT
previous/JJ
Friday/NNP
and/CC
6.8/CD
%/NN
from/IN
Oct./NNP
13/CD
,/,
when/WRB
Wall/NNP
Street/NNP
's/POS
plunge/NN
helped/VBD
spark/VB
the/DT
current/JJ
weakness/NN
in/IN
London/NNP
./.
The/DT
30-share/JJ
index/NN
settled/VBD
42.0/CD
points/NNS
lower/JJR
at/IN
1678.5/CD
./.
Volume/NN
was/VBD
840.8/CD
million/CD
shares/NNS
,/,
up/RB
from/IN
443.6/CD
million/CD
Thursday/NNP
and/CC
the/DT
week/NN
's/POS
most/RBS
active/JJ
session/NN
./.
Dealers/NNS
said/VBD
the/DT
turnover/NN
,/,
largely/RB
confined/VBN
to/TO
the/DT
100-share/JJ
index/NN
stocks/NNS
,/,
partly/RB
reflected/VBD
the/DT
flurry/NN
of/IN
activity/NN
typical/JJ
at/IN
the/DT
close/NN
of/IN
a/DT
two-week/JJ
trading/NN
account/NN
and/CC
the/DT
start/NN
of/IN
a/DT
new/JJ
account/NN
./.
But/CC
they/PRP
said/VBD
Friday/NNP
's/POS
focus/NN
on/IN
the/DT
top-tier/JJ
stocks/NNS
telegraphed/VBD
active/JJ
overseas/JJ
selling/NN
and/CC
showed/VBD
the/DT
broad-based/JJ
fears/NNS
over/IN
the/DT
status/NN
of/IN
the/DT
U.K./NNP
economy/NN
and/CC
Britain/NNP
's/POS
currency/NN
in/IN
the/DT
wake/NN
of/IN
the/DT
upheaval/NN
in/IN
Prime/NNP
Minister/NNP
Margaret/NNP
Thatcher/NNP
's/POS
cabinet/NN
./.
A/DT
senior/JJ
dealer/NN
with/IN
Warburg/NNP
Securities/NNPS
noted/VBD
British/NNP
Gas/NNP
,/,
the/DT
most/RBS
active/JJ
blue-chip/JJ
stock/NN
at/IN
20/CD
million/CD
shares/NNS
traded/VBD
,/,
was/VBD
affected/VBN
by/IN
the/DT
political/JJ
implications/NNS
of/IN
Mr./NNP
Lawson/NNP
's/POS
departure/NN
and/CC
Mrs./NNP
Thatcher/NNP
's/POS
cabinet/NN
shuffle/NN
./.
He/PRP
attributed/VBD
the/DT
unusually/RB
high/JJ
volume/NN
to/TO
broad-based/JJ
selling/NN
on/IN
fears/NNS
that/IN
the/DT
Thatcher/NNP
government/NN
may/MD
be/VB
in/IN
turmoil/NN
and/CC
Britain/NNP
's/POS
Labor/NNP
Party/NNP
positioned/VBD
to/TO
regain/VB
control/NN
of/IN
the/DT
government/NN
and/CC
renew/VB
efforts/NNS
at/IN
nationalization/NN
./.
British/NNP
Gas/NNP
shed/VBD
8.5/CD
pence/NN
a/DT
share/NN
to/TO
close/VB
at/IN
185/CD
pence/NN
$/$
2.90/CD
Other/JJ
dealers/NNS
added/VBD
that/IN
the/DT
blue-chip/JJ
stocks/NNS
in/IN
general/JJ
were/VBD
hit/VBN
by/IN
profit-taking/NN
over/IN
concerns/NNS
that/IN
London/NNP
shares/NNS
will/MD
continue/VB
posting/VBG
declines/NNS
and/CC
the/DT
uncertainty/NN
over/IN
sterling/JJ
given/VBN
that/IN
Mr./NNP
Lawson/NNP
's/POS
successor/NN
,/,
John/NNP
Major/NNP
,/,
had/VBD
only/RB
been/VBN
in/IN
the/DT
job/NN
one/CD
day/NN
./.
Besides/IN
British/NNP
Gas/NNP
,/,
British/NNP
Steel/NNP
skidded/VBD
1.74/CD
to/TO
123.5/CD
on/IN
turnover/NN
of/IN
11/CD
million/CD
shares/NNS
./.
British/NNP
Petroleum/NNP
fell/VBD
5/CD
to/TO
286/CD
on/IN
14/CD
million/CD
shares/NNS
traded/VBN
./.
Dealers/NNS
said/VBD
the/DT
multinational/JJ
oil/NN
company/NN
was/VBD
pressured/NN
by/IN
recent/JJ
brokerage/NN
recommendations/NNS
urging/VBG
investors/NNS
to/TO
switch/VB
into/IN
Shell/NNP
Trading/NNP
&/CC
Transport/NNP
./.
Shell/NNP
eased/VBD
1/CD
to/TO
416/CD
on/IN
turnover/NN
of/IN
4.8/CD
million/CD
shares/NNS
./.
Among/IN
the/DT
other/JJ
actively/RB
traded/VBN
blue-chip/JJ
issues/NNS
,/,
Imperial/NNP
Chemical/NNP
Industries/NNPS
dropped/VBD
11/CD
to/TO
#/#
10.86/CD
,/,
Hanson/NNP
skidded/VBD
9.5/CD
to/TO
200.5/CD
,/,
and/CC
British/NNP
Telecom/NNP
fell/VBD
10/CD
to/TO
250/CD
./.
In/IN
Tokyo/NNP
,/,
stocks/NNS
closed/VBD
lower/JJR
but/CC
above/JJ
intraday/NN
lows/NNS
in/IN
active/JJ
trading/NN
./.
The/DT
Nikkei/NNP
index/NN
was/VBD
pressured/VBN
down/RB
by/IN
profit-taking/NN
triggered/VBN
by/IN
sharp/JJ
advances/NNS
made/VBN
through/IN
this/DT
week/NN
and/CC
fell/VBD
151.20/CD
points/NNS
to/TO
35527.29/CD
./.
In/IN
early/RB
trading/NN
in/IN
Tokyo/NNP
Monday/NNP
,/,
the/DT
Nikkei/NNP
index/NN
fell/VBD
148.85/CD
points/NNS
to/TO
35378.44/CD
./.
On/IN
Friday/NNP
,/,
the/DT
Tokyo/NNP
stock/NN
price/NN
index/NN
of/IN
first/JJ
section/NN
issues/NNS
was/VBD
down/RB
15.82/CD
at/IN
2681.76/CD
./.
First-section/JJ
volume/NN
was/VBD
estimated/VBN
at/IN
1.3/CD
billion/CD
shares/NNS
,/,
up/RB
from/IN
886/CD
million/CD
shares/NNS
Thursday/NNP
./.
An/DT
official/NN
at/IN
Wako/NNP
Securities/NNPS
said/VBD
brokerages/NNS
'/POS
excessive/JJ
expectations/NNS
about/IN
recent/JJ
advances/NNS
in/IN
Tokyu/NNP
Group/NNP
shares/NNS
and/CC
real/JJ
estate/NN
issues/NNS
were/VBD
dashed/VBN
Friday/NNP
./.
Dealers/NNS
placed/VBD
heavy/JJ
buy/NN
orders/NNS
in/IN
the/DT
morning/NN
to/TO
start/VB
the/DT
first/JJ
trading/NN
day/NN
for/IN
November/NNP
transactions/NNS
./.
But/CC
they/PRP
failed/VBD
to/TO
sell/VB
these/DT
stocks/NNS
to/TO
client/NN
investors/NNS
,/,
who/WP
were/VBD
cautious/JJ
about/IN
the/DT
sharp/JJ
gains/NNS
these/DT
issues/NNS
made/VBD
this/DT
week/NN
,/,
the/DT
Wako/NNP
official/NN
said/VBD
./.
Fund/NN
managers/NNS
said/VBD
Friday/NNP
's/POS
profittaking/NN
was/VBD
a/DT
natural/JJ
result/NN
of/IN
the/DT
week/NN
's/POS
``/``
abnormal/JJ
fever/NN
''/''
in/IN
buying/VBG
real/JJ
estate/NN
,/,
shipbuilding/NN
,/,
steel/NN
and/CC
construction/NN
shares/NNS
./.
Frankfurt/NNP
prices/NNS
closed/VBD
lower/JJR
again/RB
Friday/NNP
,/,
the/DT
fourth/JJ
decline/NN
in/IN
the/DT
past/JJ
five/CD
days/NNS
and/CC
the/DT
culmination/NN
of/IN
a/DT
week/NN
that/WDT
saw/VBD
the/DT
DAX/NNP
index/NN
lose/VB
4/CD
%/NN
./.
The/DT
DAX/NNP
dropped/VBD
19.69/CD
points/NNS
Friday/NNP
to/TO
1462.93/CD
./.
Traders/NNS
said/VBD
the/DT
continued/VBN
turbulence/NN
in/IN
other/JJ
markets/NNS
,/,
coupled/VBN
with/IN
the/DT
drop/NN
in/IN
London/NNP
following/VBG
the/DT
Lawson/NNP
resignation/NN
,/,
were/VBD
responsible/JJ
./.
Traders/NNS
said/VBD
that/IN
selling/VBG
pressure/NN
was/VBD
n't/RB
enormous/JJ
and/CC
that/IN
the/DT
DAX/NNP
dropped/VBD
Friday/NNP
more/JJR
on/IN
a/DT
lack/NN
of/IN
any/DT
substantial/JJ
buying/NN
interest/NN
./.
They/PRP
said/VBD
contributing/VBG
to/TO
the/DT
downward/JJ
drift/NN
was/VBD
the/DT
fact/NN
that/IN
many/JJ
professional/JJ
traders/NNS
had/VBD
chosen/VBN
to/TO
square/VB
positions/NNS
ahead/RB
of/IN
the/DT
weekend/NN
./.
``/``
It/PRP
's/VBZ
the/DT
whole/JJ
uncertainty/NN
about/IN
what/WP
's/VBZ
happening/VBG
around/IN
us/PRP
,/,
''/''
said/VBD
Valentin/NNP
Von/NNP
Korff/NNP
,/,
a/DT
trader/NN
at/IN
Credit/NNP
Suisse/NNP
First/NNP
Boston/NNP
in/IN
Frankfurt/NNP
./.
``/``
If/IN
you/PRP
take/VBP
away/RB
the/DT
outside/JJ
influences/NNS
,/,
the/DT
market/NN
itself/PRP
looks/VBZ
very/RB
cheap/JJ
./.
What/WP
's/VBZ
happening/VBG
here/RB
is/VBZ
n't/RB
justified/VBN
by/IN
the/DT
fundamentals/NNS
./.
''/''
Traders/NNS
said/VBD
the/DT
market/NN
remains/VBZ
extremely/RB
nervous/JJ
because/IN
of/IN
the/DT
wild/JJ
swings/NNS
seen/VBN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
last/JJ
week/NN
./.
That/DT
's/VBZ
leaving/VBG
small/JJ
investors/NNS
with/IN
cold/JJ
feet/NNS
,/,
they/PRP
said/VBD
,/,
and/CC
prompting/VBG
institutions/NNS
to/TO
take/VB
a/DT
reserved/VBN
stance/NN
on/IN
the/DT
sidelines/NNS
as/IN
well/RB
,/,
at/IN
least/JJS
until/IN
the/DT
market/NN
in/IN
New/NNP
York/NNP
settles/VBZ
down/IN
somewhat/RB
./.
Elsewhere/RB
,/,
share/NN
prices/NNS
closed/VBD
lower/RBR
in/IN
Paris/NNP
,/,
Zurich/NNP
,/,
Amsterdam/NNP
,/,
Brussels/NNP
and/CC
Stockholm/NNP
,/,
and/CC
were/VBD
mixed/VBN
in/IN
Milan/NNP
./.
The/DT
British/JJ
shakeup/NN
was/VBD
widely/RB
cited/VBN
for/IN
the/DT
declines/NNS
./.
Share/NN
prices/NNS
also/RB
closed/VBD
lower/JJR
in/IN
Sydney/NNP
,/,
Hong/NNP
Kong/NNP
,/,
Singapore/NNP
,/,
Taipei/NNP
,/,
Manila/NNP
,/,
Wellington/NNP
and/CC
Seoul/NNP
./.
Concern/NN
about/IN
declines/NNS
in/IN
other/JJ
markets/NNS
,/,
especially/RB
New/NNP
York/NNP
,/,
caused/VBD
selling/JJ
pressure/NN
./.
Here/RB
are/VBP
price/NN
trends/NNS
on/IN
the/DT
world/NN
's/POS
major/JJ
stock/NN
markets/NNS
,/,
as/IN
calculated/VBN
by/IN
Morgan/NNP
Stanley/NNP
Capital/NNP
International/NNP
Perspective/NNP
,/,
Geneva/NNP
./.
To/TO
make/VB
them/PRP
directly/RB
comparable/JJ
,/,
each/DT
index/NN
is/VBZ
based/VBN
on/IN
the/DT
close/NN
of/IN
1969/CD
equaling/VBG
100/CD
./.
The/DT
percentage/NN
change/NN
is/VBZ
since/IN
year-end/NN
./.
Last/JJ
week/NN
's/POS
best/JJS
and/CC
worst/JJS
performing/VBG
stocks/NNS
among/IN
those/DT
issues/NNS
that/WDT
make/VBP
up/IN
80/CD
%/NN
of/IN
the/DT
world/NN
's/POS
stock/NN
market/NN
capitalization/NN
local/JJ
currency/NN
Source/NN
:/:
Morgan/NNP
Stanley/NNP
Capital/NNP
Intl/NNP
./.
Perspective/NNP
APARTHEID/NNP
FOES/NNS
STAGED/VBD
a/DT
massive/JJ
anti-government/JJ
rally/NN
in/IN
South/NNP
Africa/NNP
./.
More/JJR
than/IN
70,000/CD
people/NNS
filled/VBD
a/DT
soccer/NN
stadium/NN
on/IN
the/DT
outskirts/NNS
of/IN
the/DT
black/JJ
township/NN
of/IN
Soweto/NNP
and/CC
welcomed/VBD
freed/VBN
leaders/NNS
of/IN
the/DT
outlawed/VBN
African/NNP
National/NNP
Congress/NNP
./.
It/PRP
was/VBD
considered/VBN
South/NNP
Africa/NNP
's/POS
largest/JJS
opposition/NN
rally/NN
./.
Walter/NNP
Sisulu/NNP
,/,
the/DT
ANC/NNP
's/POS
former/JJ
secretary/NN
general/NN
who/WP
served/VBD
26/CD
years/NNS
in/IN
prison/NN
before/IN
being/VBG
released/VBN
two/CD
weeks/NNS
ago/IN
,/,
urged/VBD
peace/NN
,/,
negotiation/NN
and/CC
discipline/NN
./.
President/NNP
de/NNP
Klerk/NNP
's/POS
government/NN
permitted/VBD
the/DT
rally/NN
,/,
and/CC
security/NN
forces/NNS
did/VBD
n't/RB
interfere/VB
./.
Pretoria/NNP
's/POS
approval/NN
of/IN
the/DT
demonstration/NN
and/CC
the/DT
ANC/NNP
's/POS
conciliatory/JJ
tone/NN
appeared/VBD
aimed/VBN
at/IN
setting/VBG
up/IN
negotiations/NNS
to/TO
give/VB
blacks/NNS
political/JJ
rights/NNS
./.
CONGRESSIONAL/JJ
LEADERS/NNS
BACKED/VBD
Bush/NNP
's/POS
criticism/NN
of/IN
Nicaragua/NNP
's/POS
Ortega/NNP
./.
While/IN
lawmakers/NNS
have/VBP
n't/RB
raised/VBN
the/DT
possibility/NN
of/IN
renewing/VBG
military/JJ
aid/NN
to/TO
the/DT
Contras/NNPS
following/VBG
Ortega/NNP
's/POS
weekend/NN
threat/NN
to/TO
end/VB
a/DT
truce/NN
,/,
Senate/NNP
Majority/NNP
Leader/NNP
Mitchell/NNP
said/VBD
on/IN
NBC-TV/NNP
that/IN
Ortega/NNP
had/VBD
made/VBN
``/``
a/DT
very/RB
unwise/JJ
move/NN
./.
''/''
Minority/NNP
Leader/NNP
Dole/NNP
plans/VBZ
to/TO
offer/VB
a/DT
resolution/NN
tomorrow/NN
denouncing/VBG
the/DT
Nicaraguan/JJ
president/NN
,/,
whose/WP$
remarks/NNS
came/VBD
during/IN
a/DT
celebration/NN
in/IN
Costa/NNP
Rica/NNP
marking/VBG
regional/JJ
moves/NNS
to/TO
democracy/NN
./.
Ortega/NNP
cited/VBD
renewed/VBN
attacks/NNS
by/IN
the/DT
U.S.backed/JJ
rebels/NNS
./.
Lawmakers/NNS
must/MD
decide/VB
next/JJ
month/NN
whether/IN
the/DT
Contras/NNPS
will/MD
get/VB
so-called/JJ
humanitarian/JJ
aid/NN
under/IN
a/DT
bipartisan/JJ
agreement/NN
reached/VBN
in/IN
March/NNP
./.
Spain/NNP
's/POS
Socialist/NNP
Party/NNP
claimed/VBD
victory/NN
in/IN
nationwide/JJ
elections/NNS
,/,
saying/VBG
it/PRP
had/VBD
retained/VBN
its/PRP$
parliamentary/JJ
majority/NN
by/IN
one/CD
seat/NN
./.
With/IN
all/PDT
the/DT
votes/NNS
counted/VBN
,/,
a/DT
government/NN
spokesman/NN
said/VBD
Prime/NNP
Minister/NNP
Gonzalez/NNP
's/POS
party/NN
won/VBD
176/CD
seats/NNS
in/IN
the/DT
350-seat/JJ
Cortes/NNP
,/,
or/CC
lower/JJR
house/NN
of/IN
parliament/NN
./.
The/DT
Socialists/NNPS
held/VBD
184/CD
seats/NNS
going/VBG
into/IN
the/DT
balloting/NN
./.
Thousands/NNS
of/IN
East/NNP
Germans/NNPS
attended/VBD
public/JJ
rallies/NNS
organized/VBN
by/IN
the/DT
Communist/NNP
leadership/NN
and/CC
demanded/VBD
free/JJ
speech/NN
,/,
controls/NNS
on/IN
the/DT
security/NN
forces/NNS
and/CC
an/DT
end/NN
to/TO
official/JJ
privileges/NNS
./.
The/DT
gatherings/NNS
in/IN
East/NNP
Berlin/NNP
and/CC
elsewhere/RB
were/VBD
viewed/VBN
as/IN
part/NN
of/IN
a/DT
government/NN
effort/NN
to/TO
stop/VB
activists/NNS
from/IN
staging/VBG
protests/NNS
to/TO
press/VB
their/PRP$
demands/NNS
./.
Dissidents/NNS
in/IN
Czechoslovakia/NNP
said/VBD
the/DT
nation/NN
's/POS
pro-democracy/JJ
movement/NN
was/VBD
growing/VBG
despite/IN
the/DT
government/NN
's/POS
move/NN
to/TO
crush/VB
a/DT
protest/NN
Saturday/NNP
in/IN
Prague/NNP
's/POS
Wenceslas/NNP
Square/NNP
./.
More/JJR
than/IN
10,000/CD
demonstrators/NNS
had/VBD
called/VBN
for/IN
free/JJ
elections/NNS
and/CC
the/DT
resignation/NN
of/IN
Communist/NNP
Party/NNP
leader/NN
Milos/NNP
Jakes/NNP
./.
Police/NNS
detained/VBD
more/JJR
than/IN
350/CD
people/NNS
./.
Federal/NNP
investigators/NNS
have/VBP
determined/VBN
a/DT
metallurgical/JJ
flaw/NN
that/WDT
developed/VBD
during/IN
the/DT
making/NN
of/IN
an/DT
engine/NN
disk/NN
led/VBD
to/TO
the/DT
July/NNP
crash/NN
of/IN
a/DT
United/NNP
Airlines/NNPS
jetliner/NN
in/IN
Sioux/NNP
City/NNP
,/,
Iowa/NNP
,/,
killing/VBG
112/CD
people/NNS
./.
Congress/NNP
sent/VBD
to/TO
Bush/NNP
an/DT
$/$
8.5/CD
billion/CD
military/JJ
construction/NN
bill/NN
that/WDT
cuts/VBZ
spending/NN
for/IN
new/JJ
installations/NNS
by/IN
16/CD
%/NN
./.
The/DT
measure/NN
also/RB
moves/VBZ
more/JJR
than/IN
$/$
450/CD
million/CD
in/IN
the/DT
Pentagon/NNP
budget/NN
to/TO
home-state/JJ
projects/NNS
from/IN
foreign/JJ
bases/NNS
./.
U.S./NNP
and/CC
Soviet/JJ
officials/NNS
are/VBP
to/TO
open/VB
a/DT
new/JJ
round/NN
of/IN
talks/NNS
today/NN
aimed/VBN
at/IN
reducing/VBG
chemical-weapons/NNS
arsenals/NNS
amid/IN
superpower/NN
differences/NNS
over/IN
whether/IN
to/TO
stop/VB
making/VBG
the/DT
gases/NNS
./.
The/DT
talks/NNS
in/IN
New/NNP
York/NNP
are/VBP
the/DT
first/JJ
since/IN
Bush/NNP
and/CC
Soviet/JJ
Foreign/NNP
Minister/NNP
Shevardnadze/NNP
unveiled/VBD
proposals/NNS
in/IN
September/NNP
to/TO
scrap/VB
existing/VBG
weapons/NNS
./.
Afghan/NNP
guerrillas/NNS
bombarded/VBD
Kabul/NNP
in/IN
a/DT
weekend/NN
assault/NN
that/IN
Western/JJ
diplomats/NNS
called/VBD
one/CD
of/IN
the/DT
biggest/JJS
offensives/NNS
since/IN
the/DT
Soviet/NNP
Union/NNP
completed/VBD
a/DT
troop/NN
withdrawal/NN
in/IN
February/NNP
./.
The/DT
rebels/NNS
also/RB
reportedly/RB
tightened/VBD
a/DT
blockade/NN
on/IN
roads/NNS
leading/VBG
to/TO
the/DT
capital/NN
,/,
and/CC
government/NN
forces/NNS
shelled/VBD
a/DT
guerrilla-held/JJ
area/NN
in/IN
western/JJ
Afghanistan/NNP
./.
Lebanon/NNP
's/POS
Christian/NNP
leader/NN
convened/VBD
an/DT
emergency/NN
meeting/NN
of/IN
his/PRP$
cabinet/NN
after/IN
indications/NNS
that/IN
he/PRP
might/MD
dissolve/VB
Parliament/NNP
in/IN
an/DT
attempt/NN
to/TO
scuttle/VB
an/DT
Arab-sponsored/JJ
peace/NN
plan/NN
./.
Gen./NNP
Michel/NNP
Aoun/NNP
rejected/VBD
the/DT
pact/NN
because/IN
it/PRP
fails/VBZ
to/TO
provide/VB
a/DT
timetable/NN
for/IN
a/DT
Syrian/JJ
troop/NN
pullout/NN
from/IN
Lebanon/NNP
./.
Authorities/NNS
in/IN
Hawaii/NNP
said/VBD
the/DT
wreckage/NN
of/IN
a/DT
missing/VBG
commuter/NN
plane/NN
with/IN
20/CD
people/NNS
aboard/IN
was/VBD
spotted/VBN
in/IN
a/DT
remote/JJ
valley/NN
on/IN
the/DT
island/NN
of/IN
Molokai/NNP
./.
There/EX
was/VBD
n't/RB
any/DT
evidence/NN
of/IN
survivors/NNS
./.
The/DT
plane/NN
failed/VBD
to/TO
reach/VB
Molokai/NNP
's/POS
airport/NN
Saturday/NNP
while/IN
on/IN
a/DT
flight/NN
from/IN
the/DT
neighboring/VBG
island/NN
of/IN
Maui/NNP
./.
The/DT
Oakland/NNP
Athletics/NNP
won/VBD
baseball/NN
's/POS
World/NNP
Series/NNP
,/,
defeating/VBG
the/DT
San/NNP
Francisco/NNP
Giants/NNPS
in/IN
a/DT
four-game/JJ
sweep/NN
./.
An/DT
earthquake/NN
Oct./NNP
17/CD
in/IN
Northern/NNP
California/NNP
had/VBD
caused/VBN
a/DT
10-day/JJ
delay/NN

midway/NN
through/IN
the/DT
championship/NN
contest/NN
,/,
which/WDT
ended/VBD
Saturday/NNP
at/IN
San/NNP
Francisco/NNP
's/POS
Candlestick/NNP
Park/NNP
./.
Died/VBD
:/:
Rudolf/NNP
von/NNP
Bennigsen-Foerder/NNP
,/,
63/CD
,/,
chairman/NN
of/IN
Veba/NNP
AG/NNP
of/IN
West/NNP
Germany/NNP
,/,
in/IN
Duesseldorf/NNP
,/,
of/IN
pneumonia/NN
./.
The/DT
West/JJ
German/JJ
machinery/NN
and/CC
plant/NN
equipment/NN
industry/NN
's/POS
orders/NNS
rose/VBD
an/DT
inflation-adjusted/JJ
1/CD
%/NN
in/IN
September/NNP
from/IN
a/DT
year/NN
earlier/RBR
despite/IN
a/DT
sharp/JJ
drop/NN
in/IN
foreign/JJ
orders/NNS
,/,
the/DT
German/NNP
Association/NNP
of/IN
Machinery/NNP
Makers/NNPS
said/VBD
./.
Before/IN
adjustment/NN
for/IN
inflation/NN
,/,
the/DT
association/NN
said/VBD
,/,
orders/NNS
were/VBD
up/RB
a/DT
nominal/JJ
5/CD
%/NN
./.
While/IN
domestic/JJ
orders/NNS
climbed/VBD
an/DT
adjusted/VBN
8/CD
%/NN
and/CC
a/DT
nominal/JJ
11/CD
%/NN
in/IN
September/NNP
,/,
foreign/JJ
orders/NNS
declined/VBD
4/CD
%/NN
after/IN
inflation/NN
and/CC
1/CD
%/NN
on/IN
a/DT
nominal/JJ
basis/NN
./.
In/IN
the/DT
third/JJ
quarter/NN
,/,
orders/NNS
rose/VBD
a/DT
real/JJ
5/CD
%/NN
and/CC
a/DT
nominal/JJ
9/CD
%/NN
./.
Domestic/JJ
orders/NNS
were/VBD
up/RB
a/DT
real/JJ
11/CD
%/NN
and/CC
a/DT
nominal/JJ
14/CD
%/NN
,/,
while/IN
foreign/JJ
orders/NNS
rose/VBD
a/DT
real/JJ
1/CD
%/NN
and/CC
a/DT
nominal/JJ
5/CD
%/NN
./.
When/WRB
Michael/NNP
S./NNP
Perry/NNP
took/VBD
the/DT
podium/NN
at/IN
a/DT
recent/JJ
cosmetics/NNS
industry/NN
event/NN
,/,
more/JJR
than/IN
500/CD
executives/NNS
packing/VBG
the/DT
room/NN
snapped/VBD
to/TO
attention/NN
./.
Mr./NNP
Perry/NNP
,/,
who/WP
runs/VBZ
Unilever/NNP
Group/NNP
's/POS
world-wide/JJ
personal-care/JJ
business/NN
,/,
paused/VBD
to/TO
scan/VB
the/DT
crowd/NN
./.
``/``
I/PRP
see/VBP
we/PRP
have/VBP
about/IN
half/PDT
the/DT
audience/NN
working/VBG
for/IN
us/PRP
,/,
''/''
he/PRP
said/VBD
,/,
tongue/NN
in/IN
cheek/NN
./.
``/``
The/DT
other/JJ
half/NN
,/,
we/PRP
may/MD
have/VB
before/IN
long/JJ
./.
''/''
Members/NNS
of/IN
the/DT
audience/NN
gasped/VBD
or/CC
laughed/VBD
nervously/RB
;/:
their/PRP$
industry/NN
has/VBZ
been/VBN
unsettled/VBN
recently/RB
by/IN
acquisitions/NNS
./.
First/JJ
Unilever/NNP
,/,
the/DT
Anglo-Dutch/NNP
packaged-goods/NNS
giant/JJ
,/,
spent/VBD
$/$
2/CD
billion/CD
to/TO
acquire/VB
brands/NNS
such/JJ
as/IN
Faberge/NNP
and/CC
Elizabeth/NNP
Arden/NNP
./.
It/PRP
now/RB
holds/VBZ
the/DT
No./NN
3/CD
position/NN
at/IN
U.S./NNP
department-store/NN
cosmetic/NN
counters/NNS
./.
Then/RB
Procter/NNP
&/CC
Gamble/NNP
Co./NNP
agreed/VBD
to/TO
buy/VB
Noxell/NNP
Corp./NNP
for/IN
$/$
1.3/CD
billion/CD
./.
That/DT
acquisition/NN
,/,
to/TO
be/VB
completed/VBN
by/IN
year/NN
end/NN
,/,
will/MD
include/VB
the/DT
Cover/NNP
Girl/NNP
and/CC
Clarion/NNP
makeup/NN
lines/NNS
,/,
making/VBG
P&G/NNP
the/DT
top/JJ
marketer/NN
of/IN
cosmetics/NNS
in/IN
mass-market/JJ
outlets/NNS
./.
It/PRP
's/VBZ
not/RB
so/RB
much/JJ
the/DT
idea/NN
of/IN
acquisitions/NNS
that/WDT
has/VBZ
agitated/VBN
the/DT
cosmetics/NNS
industry/NN
as/IN
the/DT
companies/NNS
doing/VBG
the/DT
acquiring/VBG
:/:
P&G/NNP
and/CC
Unilever/NNP
bring/VBP
with/IN
them/PRP
great/JJ
experience/NN
with/IN
mundane/JJ
products/NNS
like/IN
soap/NN
and/CC
toilet/NN
paper/NN
,/,
sparking/VBG
disdain/NN
in/IN
the/DT
glitzy/NN
cosmetics/NNS
trade/NN
;/:
but/CC
they/PRP
also/RB
bring/VBP
mammoth/JJ
marketing/NN
clout/NN
,/,
sparking/VBG
fear/NN
./.
Though/IN
it/PRP
is/VBZ
far/RB
from/IN
certain/JJ
that/IN
companies/NNS
best/RB
known/VBN
for/IN
selling/VBG
Promise/NNP
margarine/NN
and/CC
Tide/NNP
detergent/NN
will/MD
succeed/VB
in/IN
cosmetics/NNS
,/,
there/EX
's/VBZ
little/JJ
doubt/NN
they/PRP
will/MD
shake/VB
up/IN
the/DT
industry/NN
./.
For/IN
now/RB
,/,
both/DT
companies/NNS
are/VBP
keeping/VBG
quiet/JJ
about/IN
their/PRP$
specific/JJ
plans/NNS
./.
But/CC
industry/NN
watchers/NNS
expect/VBP
them/PRP
to/TO
blend/VB
the/DT
methodical/JJ
marketing/VBG
strategies/NNS
they/PRP
use/VBP
for/IN
more/RBR
mundane/JJ
products/NNS
with/IN
the/DT
more/RBR
intuitive/JJ
approach/NN
typical/JJ
of/IN
cosmetics/NNS
companies/NNS
./.
Likely/JJ
changes/NNS
include/VBP
more/JJR
emphasis/NN
on/IN
research/NN
,/,
soaring/VBG
advertising/VBG
budgets/NNS
and/CC
aggressive/JJ
pricing/NN
./.
But/CC
some/DT
cosmetics-industry/NN
executives/NNS
wonder/VBP
whether/IN
techniques/NNS
honed/VBN
in/IN
packaged/VBN
goods/NNS
will/MD
translate/VB
to/TO
the/DT
cosmetics/NNS
business/NN
./.
Estee/NNP
Lauder/NNP
Inc./NNP
,/,
Revlon/NNP
Inc./NNP
and/CC
other/JJ
cosmetics/NNS
houses/NNS
traditionally/RB
have/VBP
considered/VBN
themselves/PRP
fashion/NN
enterprises/NNS
whose/WP$
product/NN
development/NN
is/VBZ
guided/VBN
by/IN
the/DT
creative/JJ
intuition/NN
of/IN
their/PRP$
executives/NNS
./.
Cosmetics/NNS
companies/NNS
roll/VBP
out/IN
new/JJ
makeup/NN
colors/NNS
several/JJ
times/NNS
a/DT
year/NN
,/,
and/CC
since/IN
most/JJS
products/NNS
can/MD
be/VB
easily/RB
copied/VBN
by/IN
competitors/NNS
,/,
they/PRP
're/VBP
loath/JJ
to/TO
test/VB
them/PRP
with/IN
consumers/NNS
./.
``/``
Just/RB
because/IN
upscale/JJ
cosmetics/NNS
look/VBP
like/IN
packaged/VBN
goods/NNS
and/CC
smell/NN
like/IN
packaged/VBN
goods/NNS
,/,
it/PRP
does/VBZ
n't/RB
mean/VB
they/PRP
are/VBP
packaged/VBN
goods/NNS
,/,
''/''
says/VBZ
Leonard/NNP
Lauder/NNP
,/,
chief/NN
executive/NN
of/IN
Estee/NNP
Lauder/NNP
./.
``/``
They/PRP
're/VBP
really/RB
fashion/NN
items/NNS
wrapped/VBD
up/IN
in/IN
little/JJ
jars/NNS
./.
''/''
In/IN
contrast/NN
to/TO
the/DT
more/RBR
artistic/JJ
nature/NN
of/IN
traditional/JJ
cosmetics/NNS
houses/NNS
,/,
Unilever/NNP
and/CC
P&G/NNP
are/VBP
the/DT
habitats/NNS
of/IN
organization/NN
men/NNS
in/IN
gray-flannel/NN
suits/NNS
./.
Both/DT
companies/NNS
are/VBP
conservative/JJ
marketers/NNS
that/WDT
rely/VBP
on/IN
extensive/JJ
market/NN
research/NN
./.
P&G/NNP
,/,
in/IN
particular/JJ
,/,
rarely/RB
rolls/VBZ
out/IN
a/DT
product/NN
nationally/RB
before/IN
extensive/JJ
test-marketing/NN
./.
Both/DT
can/MD
be/VB
extremely/RB
aggressive/JJ
at/IN
pricing/VBG
such/JJ
products/NNS
as/IN
soaps/NNS
and/CC
diapers/NNS
--/:
to/TO
the/DT
extent/NN
that/IN
some/DT
industry/NN
consultants/NNS
predict/VBP
cents-off/JJ
coupons/NNS
for/IN
mascara/NN
could/MD
result/VB
from/IN
their/PRP$
entry/NN
into/IN
the/DT
field/NN
./.
P&G/NNP
already/RB
has/VBZ
shown/VBN
it/PRP
can/MD
meld/VB
some/DT
traditional/JJ
packaged-goods/NNS
techniques/NNS
with/IN
the/DT
image-making/NN
of/IN
the/DT
cosmetics/NNS
trade/NN
in/IN
the/DT
mass-market/JJ
end/NN
of/IN
the/DT
business/NN
./.
Consider/VB
Oil/NNP
of/IN
Olay/NNP
,/,
which/WDT
P&G/NNP
acquired/VBD
as/IN
part/NN
of/IN
Richardson-Vicks/NNP
International/NNP
in/IN
1985/CD
./.
The/DT
moisturizer/NN
,/,
introduced/VBN
in/IN
1962/CD
,/,
had/VBD
a/DT
dowdy/JJ
image/NN
./.
``/``
Oil/NNP
of/IN
Olay/NNP
brought/VBD
with/IN
it/PRP
the/DT
baggage/NN
of/IN
being/VBG
used/VBN
basically/RB
by/IN
older/JJR
women/NNS
who/WP
had/VBD
already/RB
aged/VBN
,/,
''/''
says/VBZ
David/NNP
Williams/NNP
,/,
a/DT
consultant/NN
with/IN
New/NNP
England/NNP
Consulting/NNP
Group/NNP
./.
P&G/NNP
set/VBD
out/IN
to/TO
reposition/VB
the/DT
brand/NN
by/IN
broadening/VBG
the/DT
product/NN
line/NN
to/TO
include/VB
facial/JJ
cleansers/NNS
and/CC
moisturizers/NNS
for/IN
sensitive/JJ
skin/NN
./.
It/PRP
also/RB
redesigned/VBD
Oil/NNP
of/IN
Olay/NNP
's/POS
packaging/NN
,/,
stamping/VBG
the/DT
traditional/JJ
pink/JJ
boxes/NNS
with/IN
gold/JJ
lines/NNS
to/TO
create/VB
a/DT
more/RBR
opulent/JJ
look/NN
./.
Moreover/RB
,/,
P&G/NNP
shifted/VBD
its/PRP$
ad/NN
campaign/NN
from/IN
one/CD
targeting/VBG
older/JJR
women/NNS
to/TO
one/CD
featuring/VBG
a/DT
woman/NN
in/IN
her/PRP$
mid-30s/CD
vowing/VBG
``/``
not/RB
to/TO
grow/VB
old/JJ
gracefully/RB
./.
''/''
The/DT
company/NN
says/VBZ
sales/NNS
have/VBP
soared/VBN
./.
Goliaths/NNS
like/IN
Unilever/NNP
and/CC
P&G/NNP
have/VBP
enormous/JJ
financial/JJ
advantages/NNS
over/IN
smaller/JJR
rivals/NNS
./.
Next/JJ
year/NN
,/,
Noxell/NNP
plans/VBZ
to/TO
roll/VB
out/IN
a/DT
perfume/NN
called/VBN
Navy/NNP
,/,
says/VBZ
George/NNP
L./NNP
Bunting/NNP
Jr./NNP
,/,
chairman/NN
of/IN
Noxell/NNP
./.
Without/IN
P&G/NNP
's/POS
backing/NN
,/,
Noxell/NNP
might/MD
not/RB
have/VB
been/VBN
able/JJ
to/TO
spend/VB
the/DT
estimated/VBN
$/$
5/CD
million/CD
to/TO
$/$
7/CD
million/CD
needed/VBN
to/TO
accomplish/VB
that/IN
without/IN
scrimping/VBG
on/IN
its/PRP$
existing/VBG
brands/NNS
./.
Packaged-goods/NNS
companies/NNS
``/``
will/MD
make/VB
it/PRP
tougher/JJR
for/IN
smaller/JJR
people/NNS
to/TO
remain/VB
competitive/JJ
,/,
''/''
Mr./NNP
Bunting/NNP
says/VBZ
./.
Further/JJ
consolidations/NNS
in/IN
the/DT
industry/NN
could/MD
follow/VB
./.
Rumors/NNS
that/IN
Unilever/NNP
is/VBZ
interested/JJ
in/IN
acquiring/VBG
Schering-Plough/NNP
Corp./NNP
's/POS
Maybelline/NNP
unit/NN
are/VBP
widespread/JJ
./.
Unilever/NNP
wo/MD
n't/RB
comment/VB
;/:
Schering/NNP
,/,
however/RB
,/,
denies/VBZ
the/DT
brand/NN
is/VBZ
for/IN
sale/NN
./.
The/DT
presence/NN
of/IN
Unilever/NNP
and/CC
P&G/NNP
is/VBZ
likely/JJ
to/TO
increase/VB
the/DT
impact/NN
of/IN
advertising/NN
on/IN
cosmetics/NNS
./.
While/IN
the/DT
two/CD
are/VBP
among/IN
the/DT
world/NN
's/POS
biggest/JJS
advertisers/NNS
,/,
most/JJS
makers/NNS
of/IN
upscale/NN
cosmetics/NNS
spend/VBP
relatively/RB
little/JJ
on/IN
national/JJ
ads/NNS
./.
Instead/RB
,/,
they/PRP
focus/VBP
on/IN
events/NNS
in/IN
department/NN
stores/NNS
and/CC
pour/VBP
their/PRP$
promotional/JJ
budgets/NNS
into/IN
gifts/NNS
that/WDT
go/VBP
along/IN
with/IN
purchases/NNS
./.
Estee/NNP
Lauder/NNP
,/,
for/IN
example/NN
,/,
spends/VBZ
only/RB
an/DT
estimated/VBN
5/CD
%/NN
of/IN
sales/NNS
on/IN
advertising/NN
in/IN
the/DT
U.S./NNP
,/,
and/CC
Mr./NNP
Lauder/NNP
says/VBZ
he/PRP
has/VBZ
no/DT
plans/NNS
to/TO
change/VB
his/PRP$
strategy/NN
./.
The/DT
most/RBS
dramatic/JJ
changes/NNS
,/,
however/RB
,/,
probably/RB
will/MD
come/VB
in/IN
new-product/NN
development/NN
./.
Nearly/RB
70/CD
%/NN
of/IN
cosmetics/NNS
sales/NNS
come/VBP
through/IN
mass-distribution/JJ
outlets/NNS
such/JJ
as/IN
drug/NN
stores/NNS
and/CC
supermarkets/NNS
,/,
according/VBG
to/TO
Andrew/NNP
Shore/NNP
,/,
an/DT
analyst/NN
at/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc/NNP
./.
That/DT
figure/NN
has/VBZ
been/VBN
inching/VBG
up/IN
for/IN
several/JJ
years/NNS
./.
As/IN
the/DT
trend/NN
continues/VBZ
,/,
demand/NN
for/IN
mass-market/JJ
items/NNS
that/WDT
are/VBP
high/JJ
quality/NN
but/CC
only/RB
mid-priced/JJ
--/:
particularly/RB
skin-care/NN
products/NNS
--/:
is/VBZ
expected/VBN
to/TO
increase/VB
./.
This/DT
fall/NN
,/,
for/IN
example/NN
,/,
L'Oreal/NNP
Group/NNP
,/,
ordinarily/RB
a/DT
high-end/JJ
line/NN
,/,
rolled/VBD
out/IN
a/DT
drug-store/NN
line/NN
of/IN
skin-care/NN
products/NNS
called/VBN
Plenitude/NNP
,/,
which/WDT
retail/VBP
for/IN
$/$
5/CD
to/TO
$/$
15/CD
./.
The/DT
packaged-goods/NNS
marketers/NNS
may/MD
try/VB
filling/VBG
that/DT
gap/NN
with/IN
a/DT
spate/NN
of/IN
new/JJ
products/NNS
./.
Unlike/IN
the/DT
old-line/NN
cosmetics/NNS
houses/NNS
,/,
Unilever/NNP
and/CC
P&G/NNP
both/DT
have/VBP
enormous/JJ
research/NN
and/CC
development/NN
bases/NNS
to/TO
draw/VB
on/IN
for/IN
new/JJ
products/NNS
./.
P&G/NNP
,/,
in/IN
fact/NN
,/,
is/VBZ
noted/VBN
for/IN
gaining/VBG
market/NN
leadership/NN
by/IN
introducing/VBG
products/NNS
that/WDT
offer/VBP
a/DT
technical/JJ
edge/NN
over/IN
the/DT
competition/NN
./.
Sales/NNS
of/IN
its/PRP$
Tide/NNP
detergent/NN
soared/VBD
earlier/RBR
this/DT
year/NN
,/,
for/IN
example/NN
,/,
after/IN
P&G/NNP
introduced/VBD
a/DT
version/NN
that/WDT
includes/VBZ
a/DT
bleach/NN
safe/JJ
for/IN
all/DT
colors/NNS
and/CC
fabrics/NNS
./.
That/DT
's/VBZ
led/VBN
industry/NN
executives/NNS
to/TO
speculate/VB
that/IN
future/JJ
product/NN
development/NN
will/MD
be/VB
driven/VBN
more/JJR
by/IN
technological/JJ
innovation/NN
than/IN
by/IN
fashion/NN
whims/NNS
--/:
especially/RB
among/IN
mass-market/JJ
brands/NNS
./.
``/``
There/EX
will/MD
be/VB
more/JJR
emphasis/NN
on/IN
quality/NN
,/,
''/''
says/VBZ
Guy/NNP
Peyrelongue/NNP
,/,
chief/NN
executive/NN
of/IN
Cosmair/NNP
Inc./NNP
,/,
the/DT
U.S./NNP
licensee/NN
of/IN
L'Oreal/NNP
./.
``/``
You/PRP
'll/MD
see/VB
fewer/JJR
gimmicks/NNS
./.
''/''
But/CC
success/NN
for/IN
Unilever/NNP
and/CC
P&G/NNP
is/VBZ
far/RB
from/IN
guaranteed/VBN
,/,
as/IN
shown/VBN
by/IN
the/DT
many/JJ
consumer-product/NN
companies/NNS
that/WDT
have/VBP
tried/VBN
and/CC
failed/VBN
to/TO
master/VB
the/DT
quirky/JJ
beauty/NN
business/NN
./.
In/IN
the/DT
1970s/CD
,/,
several/JJ
pharmaceutical/JJ
and/CC
packaged-goods/JJ
companies/NNS
,/,
including/VBG
Colgate-Palmolive/NNP
Co./NNP
,/,
Eli/NNP
Lilly/NNP
&/CC
Co./NNP
,/,
Pfizer/NNP
Inc./NNP
and/CC
Schering-Plough/NNP
acquired/VBD
cosmetics/NNS
companies/NNS
./.
Industry/NN
consultants/NNS
say/VBP
only/RB
Schering-Plough/NNP
,/,
which/WDT
makes/VBZ
the/DT
mass-market/JJ
Maybelline/NNP
,/,
has/VBZ
maintained/VBN
a/DT
meaningful/JJ
business/NN
./.
Colgate/NNP
,/,
which/WDT
acquired/VBD
Helena/NNP
Rubenstein/NNP
in/IN
1973/CD
,/,
sold/VBD
the/DT
brand/NN
seven/CD
years/NNS
later/RB
after/IN
the/DT
brand/NN
languished/VBD
./.
Unilever/NNP
already/RB
has/VBZ
experienced/VBN
some/DT
disappointment/NN
./.
The/DT
mass-market/JJ
Aziza/NNP
brand/NN
,/,
which/WDT
it/PRP
acquired/VBD
in/IN
1987/CD
along/IN
with/IN
Chesebrough-Pond/NNP
's/POS
Inc./NNP
,/,
has/VBZ
lost/VBN
share/NN
,/,
according/VBG
to/TO
industry/NN
analysts/NNS
./.
The/DT
ritzy/JJ
world/NN
of/IN
department-store/NN
cosmetics/NNS
retailing/NN
,/,
where/WRB
Unilever/NNP
is/VBZ
concentrating/VBG
its/PRP$
efforts/NNS
,/,
may/MD
prove/VB
even/RB
more/RBR
treacherous/JJ
./.
In/IN
this/DT
niche/NN
,/,
makeup/NN
colors/NNS
change/VBP
seasonally/RB
because/IN
they/PRP
are/VBP
linked/VBN
to/TO
ready-to-wear/JJ
fashions/NNS
./.
Because/IN
brand/NN
loyalty/NN
is/VBZ
weak/JJ
and/CC
most/JJS
cosmetics/NNS
purchases/NNS
are/VBP
unplanned/JJ
,/,
careful/JJ
training/NN
of/IN
store/NN
sales/NNS
staffs/NNS
by/IN
cosmetics/NNS
companies/NNS
is/VBZ
important/JJ
./.
And/CC
cultivating/VBG
a/DT
luxury/NN
image/NN
strong/JJ
enough/RB
to/TO
persuade/VB
consumers/NNS
to/TO
pay/VB
more/JJR
than/IN
$/$
15/CD
for/IN
lipstick/NN
or/CC
eye/NN
makeup/NN
requires/VBZ
a/DT
subtle/JJ
touch/NN
that/IN
packaged-goods/JJ
companies/NNS
have/VBP
yet/RB
to/TO
demonstrate/VB
on/IN
their/PRP$
own/JJ
./.
There/EX
may/MD
be/VB
a/DT
truce/NN
in/IN
the/DT
long/JJ
war/NN
of/IN
nerves/NNS
between/IN
the/DT
White/NNP
House/NNP
and/CC
Congress/NNP
over/IN
how/WRB
this/DT
country/NN
conducts/VBZ
secret/JJ
intelligence/NN
operations/NNS
abroad/RB
./.
After/IN
years/NNS
of/IN
mistrust/NN
born/VBN
of/IN
Watergate/NNP
,/,
past/JJ
misdeeds/NNS
of/IN
the/DT
Central/NNP
Intelligence/NNP
Agency/NNP
,/,
and/CC
the/DT
Iran-Contra/NNP
scandal/NN
,/,
President/NNP
Bush/NNP
and/CC
the/DT
Senate/NNP
Intelligence/NNP
Committee/NNP
appear/VBP
ready/JJ
--/:
for/IN
now/RB
,/,
at/IN
least/JJS
--/:
to/TO
trust/VB
each/DT
other/JJ
when/WRB
it/PRP
comes/VBZ
to/TO
setting/VBG
policy/NN
on/IN
covert/JJ
activities/NNS
./.
If/IN
that/DT
attitude/NN
lasts/VBZ
,/,
it/PRP
could/MD
infuse/VB
covert/JJ
action/NN
planning/VBG
with/IN
a/DT
level/NN
of/IN
care/NN
and/CC
confidence/NN
that/WDT
has/VBZ
n't/RB
been/VBN
seen/VBN
in/IN
years/NNS
./.
Over/IN
the/DT
past/JJ
week/NN
,/,
the/DT
president/NN
has/VBZ
agreed/VBN
to/TO
keep/VB
the/DT
committee/NN
informed/VBN
,/,
usually/RB
in/IN
advance/NN
,/,
of/IN
covert/JJ
actions/NNS
and/CC
to/TO
put/VB
key/JJ
intelligence/NN
decisions/NNS
in/IN
writing/NN
./.
That/DT
was/VBD
n't/RB
always/RB
the/DT
way/NN
the/DT
Reagan/NNP
administration/NN
handled/VBD
such/JJ
matters/NNS
./.
Mr./NNP
Bush/NNP
has/VBZ
pledged/VBN
as/RB
well/RB
to/TO
respect/VB
the/DT
14-year-old/JJ
executive/NN
order/NN
barring/VBG
U.S./NNP
agents/NNS
from/IN
assassinating/VBG
foreign/JJ
leaders/NNS
or/CC
helping/VBG
others/NNS
to/TO
do/VB
so/RB
./.
Congress/NNP
never/RB
fully/RB
trusted/VBD
former/JJ
CIA/NNP
chief/NN
William/NNP
Casey/NNP
and/CC
National/NNP
Security/NNP
Adviser/NNP
John/NNP
Poindexter/NNP
to/TO
honor/VB
the/DT
ban/NN
./.
Despite/IN
objections/NNS
by/IN
the/DT
CIA/NNP
,/,
Mr./NNP
Bush/NNP
also/RB
has/VBZ
agreed/VBN
to/TO
the/DT
establishment/NN
of/IN
an/DT
inspector/NN
general/NN
at/IN
the/DT
CIA/NNP
who/WP
would/MD
be/VB
independent/JJ
of/IN
the/DT
CIA/NNP
director/NN
./.
In/IN
return/NN
,/,
the/DT
Senate/NNP
panel/NN
has/VBZ
dropped/VBN
efforts/NNS
to/TO
enact/VB
legislation/NN
requiring/VBG
the/DT
administration/NN
to/TO
inform/VB
it/PRP
within/IN
48/CD
hours/NNS
of/IN
the/DT
launching/NN
of/IN
any/DT
covert/JJ
activity/NN
./.
It/PRP
also/RB
has/VBZ
removed/VBN
a/DT
ban/NN
on/IN
CIA/NNP
use/NN
of/IN
a/DT
contingency/NN
fund/NN
for/IN
covert/JJ
acts/NNS
and/CC
has/VBZ
agreed/VBN
to/TO
wipe/VB
away/RB
some/DT
tortured/JJ
and/CC
legalistic/JJ
restrictions/NNS
on/IN
coup/NN
planning/NN
put/VBN
in/IN
place/NN
to/TO
ensure/VB
that/IN
the/DT
CIA/NNP
did/VBD
n't/RB
get/VB
back/RB
in/IN
the/DT
assassination/NN
game/NN
./.
``/``
We/PRP
've/VBP
finally/RB
been/VBN
able/JJ
to/TO
convince/VB
them/PRP
that/IN
Casey/NNP
and/CC
{/(
Oliver/NNP
one/CD
administration/NN
official/NN
./.
The/DT
new/JJ
understanding/NN
did/VBD
n't/RB
just/RB
spring/VB
to/TO
life/NN
in/IN
a/DT
spontaneous/JJ
eruption/NN
of/IN
sweetness/NN
and/CC
light/NN
./.
It/PRP
emerged/VBD
after/IN
a/DT
rancorous/JJ
display/NN
of/IN
old-style/JJ
intelligence/NN
politics/NNS
that/WDT
followed/VBD
this/DT
month/NN
's/POS
failed/VBN
coup/NN
attempt/NN
in/IN
Panama/NNP
./.
The/DT
White/NNP
House/NNP
used/VBD
television/NN
appearances/NNS
and/CC
leaks/NNS
to/TO
argue/VB
that/IN
congressionally/RB
imposed/VBN
restrictions/NNS
on/IN
covert/JJ
actions/NNS
made/VBD
U.S./NNP
support/NN
for/IN
such/JJ
coups/NNS
difficult/JJ
./.
Mr./NNP
Bush/NNP
even/RB
disclosed/VBD
privately/RB
that/IN
one/CD
Reagan-era/NN
deal/NN
with/IN
Congress/NNP
required/VBD
him/PRP
to/TO
notify/VB
the/DT
odious/JJ
Panamanian/JJ
dictator/NN
,/,
Manuel/NNP
Noriega/NNP
,/,
if/IN
the/DT
U.S./NNP
learned/VBD
of/IN
a/DT
coup/NN
plot/NN
that/WDT
might/MD
endanger/VB
his/PRP$
life/NN
./.
The/DT
president/NN
also/RB
hinted/VBD
he/PRP
might/MD
veto/VB
this/DT
year/NN
's/POS
intelligence/NN
authorization/NN
bill/NN
if/IN
it/PRP
is/VBZ
too/RB
restrictive/JJ
./.
Intelligence/NNP
Committee/NNP
Chairman/NNP
David/NNP
Boren/NNP
D./NNP
,/,
Okla/NNP
./.
Vice/NNP
Chairman/NNP
William/NNP
Cohen/NNP
R./NNP
,/,
Maine/NNP
their/PRP$
part/NN
,/,
angrily/RB
accused/VBD
the/DT
White/NNP
House/NNP
of/IN
selectively/RB
leaking/VBG
classified/VBN
documents/NNS
and/CC
trying/VBG
unfairly/RB
to/TO
shift/VB
the/DT
blame/NN
to/TO
Congress/NNP
for/IN
the/DT
bungled/VBN
attempt/NN
to/TO
topple/VB
Gen./NNP
Noriega/NNP
./.
The/DT
White/NNP
House/NNP
got/VBD
the/DT
better/JJR
of/IN
the/DT
exchange/NN
but/CC
took/VBD
care/NN
not/RB
to/TO
press/VB
its/PRP$
advantage/NN
to/TO
the/DT
kind/NN
of/IN
constitutional/JJ
confrontation/NN
sought/VBN
by/IN
conservative/JJ
Republicans/NNPS
who/WP
do/VBP
n't/RB
want/VB
any/DT
congressional/JJ
oversight/NN
of/IN
intelligence/NN
activities/NNS
./.
Instead/RB
,/,
Mr./NNP
Bush/NNP
and/CC
his/PRP$
aides/NNS
made/VBD
it/PRP
clear/JJ
they/PRP
respected/VBD
Congress/NNP
's/POS
role/NN
and/CC
felt/VBD
they/PRP
could/MD
work/VB
with/IN
the/DT
conservative/JJ
Mr./NNP
Boren/NNP
and/CC
the/DT
moderate/JJ
Mr./NNP
Cohen/NNP
to/TO
iron/VB
out/IN
their/PRP$
differences/NNS
./.
The/DT
senators/NNS
responded/VBD
in/IN
kind/NN
./.
Sen./NNP
Boren/NNP
happily/RB
told/VBD
reporters/NNS
that/IN
there/EX
had/VBD
been/VBN
``/``
a/DT
meeting/NN
of/IN
the/DT
minds/NNS
''/''
with/IN
the/DT
White/NNP
House/NNP
,/,
and/CC
that/IN
the/DT
committee/NN
had/VBD
given/VBN
Mr./NNP
Bush/NNP
``/``
a/DT
clean/JJ
slate/NN
,/,
''/''
free/JJ
of/IN
the/DT
impediments/NNS
imposed/VBN
during/IN
the/DT
Reagan/NNP
years/NNS
./.
Sen./NNP
Cohen/NNP
said/VBD
the/DT
relationship/NN
has/VBZ
reverted/VBN
to/TO
its/PRP$
pre-Reagan/JJ
character/NN
./.
There/EX
still/RB
are/VBP
some/DT
details/NNS
to/TO
be/VB
nailed/VBN
down/IN
./.
Mr./NNP
Bush/NNP
is/VBZ
reserving/VBG
the/DT
right/NN
in/IN
``/``
rare/JJ
''/''
instances/NNS
to/TO
keep/VB
Congress/NNP
in/IN
the/DT
dark/NN
,/,
asserting/VBG
a/DT
constitutional/JJ
prerogative/NN
the/DT
committee/NN
does/VBZ
n't/RB
recognize/VB
./.
And/CC
a/DT
pending/VBG
Justice/NNP
Department/NNP
interpretation/NN
of/IN
the/DT
assassination/NN
ban/NN
could/MD
raise/VB
questions/NNS
that/WDT
would/MD
have/VB
to/TO
be/VB
settled/VBN
./.
Moreover/RB
,/,
both/DT
sides/NNS
may/MD
face/VB
political/JJ
critics/NNS
./.
Some/DT
conservatives/NNS
will/MD
accuse/VB
the/DT
president/NN
of/IN
promising/JJ
Congress/NNP
too/RB
much/RB
./.
And/CC
they/PRP
continue/VBP
anonymously/RB
attacking/VBG
CIA/NNP
Director/NNP
William/NNP
Webster/NNP
for/IN
being/VBG
too/RB
accommodating/VBG
to/TO
the/DT
committee/NN
./.
At/IN
the/DT
same/JJ
time/NN
,/,
some/DT
congressional/JJ
liberals/NNS
will/MD
accuse/VB
Sens./NNP
Boren/NNP
and/CC
Cohen/NNP
of/IN
wimping/VBG
out/IN
,/,
and/CC
they/PRP
will/MD
warn/VB
that/IN
the/DT
lawmakers/NNS
'/POS
concessions/NNS
raise/VBP
the/DT
specter/NN
of/IN
more/RBR
internationally/RB
embarrassing/JJ
covert/JJ
operations/NNS
like/IN
the/DT
mining/NN
of/IN
Nicaraguan/JJ
harbors/NNS
and/CC
the/DT
Iran/NNP
arms/NNS
sales/NNS
./.
But/CC
if/IN
the/DT
cooperative/JJ
attitude/NN
holds/VBZ
and/CC
there/EX
is/VBZ
greater/JJR
consultation/NN
on/IN
covert/JJ
activities/NNS
,/,
the/DT
country/NN
could/MD
be/VB
entering/VBG
an/DT
era/NN
when/WRB
such/JJ
hare-brained/JJ
schemes/NNS
are/VBP
scrapped/VBN
before/IN
they/PRP
get/VBP
off/IN
the/DT
drawing/NN
boards/NNS
,/,
while/IN
risky/JJ
but/CC
well-planned/JJ
secret/JJ
operations/NNS
can/MD
be/VB
undertaken/VBN
without/IN
fear/NN
that/IN
a/DT
panicky/JJ
Congress/NNP
will/MD
balk/VB
./.
Several/JJ
of/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
's/POS
own/JJ
listed/VBN
companies/NNS
,/,
led/VBN
by/IN
giant/JJ
Contel/NNP
Corp./NNP
,/,
are/VBP
joining/VBG
for/IN
the/DT
first/JJ
time/NN
to/TO
complain/VB
about/IN
program/NN
trading/NN
and/CC
the/DT
exchange/NN
's/POS
role/NN
in/IN
it/PRP
./.
Claiming/VBG
program/NN
trading/NN
has/VBZ
turned/VBN
the/DT
Big/NNP
Board/NNP
into/IN
a/DT
``/``
gambling/NN
casino/NN
,/,
''/''
Contel/NNP
Chairman/NNP
Charles/NNP
Wohlstetter/NNP
said/VBD
that/IN
he/PRP
and/CC
at/IN
least/JJS
20/CD
other/JJ
corporate/JJ
executives/NNS
are/VBP
forming/VBG
an/DT
unprecedented/JJ
alliance/NN
./.
The/DT
group/NN
,/,
Mr./NNP
Wohlstetter/NNP
said/VBD
in/IN
an/DT
interview/NN
,/,
wants/VBZ
to/TO
end/VB
the/DT
market/NN
's/POS
wild/JJ
price/NN
swings/NNS
that/IN
critics/NNS
blame/VBP
on/IN
computer-aided/JJ
program-trading/JJ
strategies/NNS
./.
The/DT
group/NN
will/MD
complain/VB
to/TO
Washington/NNP
,/,
to/TO
the/DT
heads/NNS
of/IN
program-trading/JJ
firms/NNS
and/CC
to/TO
the/DT
heads/NNS
of/IN
the/DT
Big/NNP
Board/NNP
itself/PRP
,/,
he/PRP
said/VBD
./.
``/``
They/PRP
should/MD
call/VB
{/(
the/DT
exchange/NN
Trump/NNP
East/NNP
,/,
''/''
charged/VBD
Mr./NNP
Wohlstetter/NNP
,/,
the/DT
79-year-old/JJ
founder/NN
of/IN
Contel/NNP
who/WP
's/VBZ
also/RB
a/DT
former/JJ
investment/NN
banker/NN
and/CC
stock/NN
trader/NN
./.
``/``
What/WP
is/VBZ
the/DT
mission/NN
of/IN
the/DT
financial/JJ
community/NN
--/:
to/TO
help/VB
some/DT
scavengers/NNS
or/CC
schemers/NNS
,/,
or/CC
help/VB
corporate/JJ
America/NNP
?/.
''/''
Contel/NNP
is/VBZ
a/DT
$/$
6/CD
billion/CD
telephone/NN
and/CC
electronics/NNS
company/NN
./.
Pressure/NN
has/VBZ
been/VBN
building/VBG
on/IN
the/DT
Big/NNP
Board/NNP
in/IN
the/DT
past/JJ
two/CD
weeks/NNS
to/TO
do/VB
something/NN
about/IN
market/NN
volatility/NN
,/,
which/WDT
many/JJ
investors/NNS
say/VBP
is/VBZ
caused/VBN
by/IN
program/NN
trading/NN
./.
The/DT
market/NN
's/POS
Friday-the-13th/JJ
plunge/NN
of/IN
190/CD
points/NNS
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
,/,
and/CC
the/DT
Big/NNP
Board/NNP
's/POS
understated/VBN
response/NN
to/TO
it/PRP
,/,
galvanized/VBD
some/DT
longstanding/JJ
dissatisfaction/NN
among/IN
companies/NNS
listed/VBN
on/IN
the/DT
exchange/NN
./.
Last/JJ
month/NN
,/,
program/NN
trading/NN
accounted/VBD
for/IN
a/DT
record/NN
13.8/CD
%/NN
of/IN
average/JJ
daily/JJ
Big/NNP
Board/NNP
volume/NN
./.
Mr./NNP
Wohlstetter/NNP
,/,
for/IN
example/NN
,/,
said/VBD
he/PRP
wrote/VBD
to/TO
Big/NNP
Board/NNP
Chairman/NNP
John/NNP
J./NNP
Phelan/NNP
Jr./NNP
about/IN
program/NN
trading/NN
after/IN
the/DT
190-point/JJ
Dow/NNP
plunge/NN
,/,
and/CC
as/IN
in/IN
previous/JJ
queries/NNS
,/,
``/``
what/WP
I/PRP
get/VBP

back/RB
is/VBZ
gobbledygook/NN
./.
''/''
He/PRP
said/VBD
he/PRP
's/VBZ
upset/VBN
that/IN
Mr./NNP
Phelan/NNP
,/,
trying/VBG
to/TO
calm/VB
investors/NNS
after/IN
the/DT
plunge/NN
,/,
said/VBD
that/IN
investors/NNS
would/MD
simply/RB
have/VB
to/TO
get/VB
used/VBN
to/TO
the/DT
market/NN
's/POS
big/JJ
price/NN
swings/NNS
./.
The/DT
Big/NNP
Board/NNP
``/``
is/VBZ
partly/RB
to/TO
blame/VB
{/(
for/IN
the/DT
price/NN
swings/NNS
they/PRP
're/VBP
cowards/NNS
,/,
''/''
said/VBD
Mr./NNP
Wohlstetter/NNP
./.
``/``
Their/PRP$
powerful/JJ
members/NNS
manage/VBP
them/PRP
./.
''/''
The/DT
focus/NN
of/IN
the/DT
outcry/NN
has/VBZ
been/VBN
stock-index/NN
arbitrage/NN
,/,
which/WDT
accounts/VBZ
for/IN
about/IN
half/PDT
the/DT
program/NN
trading/NN
that/WDT
goes/VBZ
on/IN
./.
Index/NN
arbitragers/NNS
argue/VBP
that/IN
their/PRP$
trading/NN
is/VBZ
healthy/JJ
because/IN
it/PRP
links/VBZ
markets/NNS
,/,
but/CC
critics/NNS
say/VBP
such/JJ
trading/NN
accelerates/VBZ
market/NN
movements/NNS
and/CC
increases/VBZ
the/DT
chance/NN
for/IN
a/DT
crash/NN
./.
The/DT
Big/NNP
Board/NNP
has/VBZ
refused/VBN
to/TO
be/VB
drawn/VBN
into/IN
a/DT
public/JJ
debate/NN
about/IN
program/NN
trading/NN
./.
Richard/NNP
Grasso/NNP
,/,
Big/NNP
Board/NNP
president/NN
,/,
last/JJ
week/NN
said/VBD
only/RB
that/IN
the/DT
exchange/NN
is/VBZ
concerned/VBN
about/IN
all/PDT
its/PRP$
constituents/NNS
./.
Privately/RB
,/,
exchange/NN
officials/NNS
worry/VBP
that/IN
without/IN
a/DT
hospitable/JJ
system/NN
for/IN
program/NN
trading/NN
at/IN
the/DT
Big/NNP
Board/NNP
,/,
billions/NNS
of/IN
dollars/NNS
in/IN
trading/NN
will/MD
simply/RB
migrate/VB
to/TO
overseas/JJ
exchanges/NNS
such/JJ
as/IN
London/NNP
's/POS
./.
It/PRP
is/VBZ
partly/RB
for/IN
this/DT
reason/NN
that/IN
the/DT
exchange/NN
last/JJ
week/NN
began/VBD
trading/VBG
in/IN
its/PRP$
own/JJ
stock/NN
``/``
basket/NN
''/''
product/NN
that/WDT
allows/VBZ
big/JJ
investors/NNS
to/TO
buy/VB
or/CC
sell/VB
all/DT
500/CD
stocks/NNS
in/IN
the/DT
Standard/NNP
&/CC
Poor/NNP
's/POS
index/NN
in/IN
a/DT
single/JJ
trade/NN
./.
One/CD
intended/VBN
customer/NN
of/IN
the/DT
new/JJ
basket/NN
product/NN
is/VBZ
index/NN
arbitragers/NNS
,/,
according/VBG
to/TO
the/DT
exchange/NN
./.
Investors/NNS
have/VBP
complained/VBN
for/IN
some/DT
time/NN
about/IN
program/NN
trading/NN
,/,
particularly/RB
index/NN
arbitrage/NN
,/,
to/TO
little/JJ
avail/NN
./.
But/CC
according/VBG
to/TO
some/DT
Big/NNP
Board/NNP
traders/NNS
,/,
an/DT
organized/VBN
campaign/NN
from/IN
exchange-listed/JJ
companies/NNS
might/MD
make/VB
the/DT
exchange/NN
finally/RB
consider/VB
big/JJ
changes/NNS
./.
``/``
They/PRP
wo/MD
n't/RB
fight/VB
the/DT
listed/VBN
companies/NNS
./.
Now/RB
the/DT
assault/NN
is/VBZ
on/IN
,/,
''/''
said/VBD
one/CD
top/NN
trader/NN
./.
The/DT
Big/NNP
Board/NNP
ca/MD
n't/RB
ban/VB
stock-index/NN
futures/NNS
,/,
of/IN
course/NN
,/,
but/CC
it/PRP
could/MD
ban/VB
use/NN
of/IN
its/PRP$
high-speed/JJ
electronic/JJ
trading/NN
system/NN
for/IN
program/NN
trading/NN
or/CC
at/IN
least/JJS
encourage/VB
securities/NNS
firms/NNS
to/TO
back/VB
off/IN
./.
The/DT
exchange/NN
put/VBD
a/DT
bit/NN
of/IN
a/DT
damper/NN
on/IN
program/NN
trading/NN
when/WRB
,/,
last/JJ
year/NN
,/,
it/PRP
simply/RB
started/VBD
to/TO
publish/VB
monthly/JJ
statistics/NNS
of/IN
each/DT
firm/NN
's/POS
program-trading/JJ
volume/NN
./.
Contel/NNP
's/POS
Mr./NNP
Wohlstetter/NNP
said/VBD
the/DT
group/NN
of/IN
Big/NNP
Board/NNP
companies/NNS
is/VBZ
n't/RB
ready/JJ
to/TO
go/VB
public/JJ
yet/RB
with/IN
its/PRP$
effort/NN
,/,
and/CC
that/IN
he/PRP
does/VBZ
n't/RB
plan/VB
to/TO
be/VB
the/DT
leader/NN
once/IN
it/PRP
is/VBZ
public/JJ
./.
However/RB
,/,
he/PRP
said/VBD
he/PRP
planned/VBD
to/TO
spend/VB
the/DT
weekend/NN
making/VBG
calls/NNS
to/TO
gather/VB
additional/JJ
support/NN
./.
Among/IN
those/DT
Mr./NNP
Wohlstetter/NNP
said/VBD
he/PRP
has/VBZ
been/VBN
talking/VBG
to/TO
are/VBP
Sanford/NNP
Weill/NNP
of/IN
Primerica/NNP
Corp./NNP
,/,
which/WDT
is/VBZ
the/DT
parent/NN
of/IN
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
&/CC
Co./NNP
;/:
GTE/NNP
Corp./NNP
's/POS
James/NNP
Johnson/NNP
,/,
and/CC
ITT/NNP
Corp./NNP
's/POS
Rand/NNP
Araskog/NNP
./.
None/NN
of/IN
these/DT
chief/NN
executives/NNS
were/VBD
available/JJ
for/IN
comment/NN
./.
Among/IN
the/DT
targets/NNS
of/IN
the/DT
Big/NNP
Board/NNP
companies/NNS
'/POS
campaign/NN
will/MD
be/VB
some/DT
corporate/JJ
pension/NN
funds/NNS
that/WDT
use/VBP
program-trading/JJ
strategies/NNS
to/TO
maximize/VB
returns/NNS
on/IN
their/PRP$
investments/NNS
./.
For/IN
Contel/NNP
's/POS
part/NN
,/,
the/DT
company/NN
a/DT
month/NN
ago/IN
informed/VBD
each/DT
of/IN
its/PRP$
money/NN
managers/NNS
that/IN
it/PRP
would/MD
drop/VB
them/PRP
if/IN
they/PRP
give/VBP
business/NN
to/TO
program-trading/JJ
firms/NNS
./.
It/PRP
was/VBD
just/RB
those/DT
kinds/NNS
of/IN
ultimatums/NNS
that/IN
last/JJ
week/NN
succeeded/VBN
in/IN
turning/VBG
up/IN
the/DT
heat/NN
in/IN
the/DT
debate/NN
./.
Kemper/NNP
Corp./NNP
's/POS
Kemper/NNP
Financial/NNP
Services/NNP
unit/NN
said/VBD
it/PRP
cut/VBD
off/IN
Bear/NNP
Stearns/NNP
,/,
Morgan/NNP
Stanley/NNP
,/,
Oppenheimer/NNP
and/CC
General/NNP
Electric/NNP
Co./NNP
's/POS
Kidder/NNP
,/,
Peabody/NNP
&/CC
Co./NNP
unit/NN
./.
All/DT
of/IN
the/DT
firms/NNS
except/IN
Kidder/NNP
,/,
which/WDT
is/VBZ
the/DT
second-biggest/JJ
program/NN
trader/NN
on/IN
Wall/NNP
Street/NNP
,/,
quickly/RB
announced/VBD
pull-backs/NNS
from/IN
index/NN
arbitrage/NN
./.
Kidder/NNP
officials/NNS
stand/VBP
by/IN
their/PRP$
aggressive/JJ
use/NN
of/IN
program/NN
trading/NN
./.
Chief/NNP
Executive/NNP
Officer/NNP
Michael/NNP
Carpenter/NNP
said/VBD
that/IN
despite/IN
the/DT
outcry/NN
even/RB
by/IN
some/DT
of/IN
Kidder/NNP
's/POS
own/JJ
brokers/NNS
,/,
he/PRP
believes/VBZ
index/NN
arbitrage/NN
does/VBZ
n't/RB
have/VB
a/DT
``/``
negative/JJ
impact/NN
on/IN
the/DT
market/NN
as/IN
a/DT
whole/NN
./.
''/''
However/RB
,/,
pressure/NN
on/IN
Kidder/NNP
's/POS
parent/NN
,/,
GE/NNP
,/,
could/MD
change/VB
Kidder/NNP
's/POS
policy/NN
./.
GE/NNP
Chairman/NNP
John/NNP
Welch/NNP
has/VBZ
been/VBN
``/``
besieged/VBN
with/IN
phone/NN
calls/NNS
''/''
complaining/VBG
about/IN
his/PRP$
unit/NN
's/POS
program/NN
trading/NN
,/,
according/VBG
to/TO
a/DT
person/NN
close/JJ
to/TO
him/PRP
./.
Margaret/NNP
Thatcher/NNP
's/POS
instinctive/JJ
response/NN
to/TO
the/DT
latest/JJS
upheaval/NN
in/IN
her/PRP$
government/NN
is/VBZ
to/TO
promise/VB
business/NN
as/IN
usual/JJ
./.
That/DT
may/MD
be/VB
the/DT
last/JJ
thing/NN
she/PRP
needs/VBZ
./.
As/IN
the/DT
air/NN
clears/VBZ
from/IN
last/JJ
week/NN
's/POS
storm/NN
of/IN
resignations/NNS
and/CC
reshufflings/NNS
,/,
the/DT
government/NN
faces/VBZ
a/DT
daunting/VBG
job/NN
of/IN
rebuilding/VBG
confidence/NN
in/IN
its/PRP$
policies/NNS
./.
The/DT
prime/JJ
minister/NN
and/CC
her/PRP$
new/JJ
chancellor/NN
of/IN
the/DT
exchequer/NN
,/,
the/DT
untested/JJ
John/NNP
Major/NNP
,/,
need/VBP
to/TO
haul/VB
the/DT
country/NN
through/IN
something/NN
like/IN
a/DT
recession/NN
to/TO
bring/VB
down/IN
inflation/NN
and/CC
set/VB
the/DT
economy/NN
moving/VBG
again/RB
./.
Mrs./NNP
Thatcher/NNP
has/VBZ
to/TO
come/VB
to/TO
terms/NNS
with/IN
European/JJ
economic/JJ
integration/NN
,/,
beginning/VBG
with/IN
the/DT
European/NNP
Monetary/NNP
System/NNP
,/,
which/WDT
Britain/NNP
is/VBZ
committed/VBN
to/TO
joining/VBG
fully/RB
someday/RB
./.
Finally/RB
,/,
the/DT
government/NN
has/VBZ
to/TO
convince/VB
a/DT
rattled/JJ
financial/JJ
community/NN
--/:
and/CC
voters/NNS
--/:
it/PRP
is/VBZ
proceeding/VBG
coherently/RB
toward/IN
its/PRP$
goals/NNS
./.
It/PRP
sounds/VBZ
like/IN
the/DT
work/NN
of/IN
a/DT
decade/NN
,/,
but/CC
the/DT
deadline/NN
is/VBZ
late/RB
1991/CD
,/,
when/WRB
Mrs./NNP
Thatcher/NNP
is/VBZ
expected/VBN
to/TO
call/VB
another/DT
national/JJ
election/NN
./.
What/WP
's/VBZ
worrying/VBG
her/PRP$
supporters/NNS
is/VBZ
that/IN
the/DT
economic/JJ
cycle/NN
may/MD
be/VB
out/IN
of/IN
kilter/NN
with/IN
the/DT
political/JJ
timetable/NN
./.
She/PRP
could/MD
end/VB
up/IN
seeking/VBG
a/DT
fourth/JJ
term/NN
in/IN
an/DT
economy/NN
sick/JJ
with/IN
inflation/NN
,/,
high/JJ
interest/NN
rates/NNS
and/CC
a/DT
heavy/JJ
trade/NN
deficit/NN
./.
Though/NNP
Mrs./NNP
Thatcher/NNP
has/VBZ
pulled/VBN
through/IN
other/JJ
crises/NNS
,/,
supporters/NNS
wonder/VBP
if/IN
her/PRP$
steely/JJ
,/,
autocratic/JJ
ways/NNS
are/VBP
the/DT
right/JJ
formula/NN
today/NN
./.
``/``
There/EX
's/VBZ
a/DT
rising/VBG
fear/NN
that/IN
perhaps/RB
Mrs./NNP
Thatcher/NNP
's/POS
style/NN
of/IN
management/NN
has/VBZ
become/VBN
a/DT
political/JJ
liability/NN
,/,
''/''
says/VBZ
Bill/NNP
Martin/NNP
,/,
senior/JJ
economist/NN
at/IN
London/NNP
brokers/NNS
UBS-Phillips/NNP
&/CC
Drew/NNP
./.
The/DT
prime/JJ
minister/NN
's/POS
insistence/NN
on/IN
keeping/VBG
a/DT
private/JJ
coterie/NN
of/IN
advisers/NNS
--/:
including/VBG
an/DT
economic/JJ
guru/NN
who/WP
openly/RB
criticized/VBD
former/JJ
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
Nigel/NNP
Lawson/NNP
--/:
confused/VBD
the/DT
financial/JJ
community/NN
./.
Last/JJ
week/NN
,/,
the/DT
strategy/NN
of/IN
playing/VBG
the/DT
two/CD
experts/NNS
off/IN
each/DT
other/JJ
blew/VBD
up/IN
:/:
Mr./NNP
Lawson/NNP
quit/VBP
in/IN
exasperation/NN
and/CC
Sir/NNP
Alan/NNP
Walters/NNP
,/,
the/DT
adviser/NN
,/,
announced/VBD
his/PRP$
resignation/NN
within/IN
an/DT
hour/NN
./.
The/DT
confusion/NN
could/MD
be/VB
costly/JJ
./.
Currency/NN
traders/NNS
,/,
suspecting/VBG
Mr./NNP
Major/NNP
wo/MD
n't/RB
defend/VB
the/DT
pound/NN
strenuously/RB
,/,
sent/VBD
the/DT
British/JJ
currency/NN
sharply/RB
lower/JJR
Friday/NNP
against/IN
the/DT
dollar/NN
and/CC
West/JJ
German/JJ
mark/NN
./.
Analysts/NNS
expect/VBP
further/JJ
jitters/NNS
this/DT
week/NN
./.
A/DT
continuing/VBG
slide/NN
in/IN
the/DT
pound/NN
could/MD
force/VB
the/DT
government/NN
to/TO
push/VB
through/IN
another/DT
rise/NN
in/IN
the/DT
base/NN
rate/NN
,/,
currently/RB
15/CD
%/NN
./.
That/DT
could/MD
shove/VB
a/DT
weak/JJ
economy/NN
into/IN
recession/NN
./.
Economists/NNS
have/VBP
been/VBN
anticipating/VBG
a/DT
slump/NN
for/IN
months/NNS
,/,
but/CC
they/PRP
now/RB
say/VBP
it/PRP
will/MD
be/VB
deeper/JJR
and/CC
longer/JJR
than/IN
they/PRP
had/VBD
thought/VBN
./.
Britain/NNP
's/POS
economy/NN
``/``
is/VBZ
developing/VBG
rapidly/RB
toward/IN
no-growth/NN
,/,
''/''
says/VBZ
J./NNP
Paul/NNP
Horne/NNP
,/,
international/JJ
economist/NN
with/IN
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
Co./NNP
in/IN
Paris/NNP
./.
A/DT
mild/JJ
slowdown/NN
probably/RB
would/MD
have/VB
run/VBN
its/PRP$
course/NN
by/IN
early/JJ
1991/CD
,/,
economists/NNS
say/VBP
,/,
while/IN
the/DT
grueling/VBG
downturn/NN
now/RB
expected/VBN
could/MD
stretch/VB
into/IN
1992/CD
./.
Recovery/NN
could/MD
be/VB
hampered/VBN
if/IN
Britain/NNP
's/POS
major/JJ
trading/VBG
partners/NNS
in/IN
Europe/NNP
,/,
which/WDT
are/VBP
enjoying/VBG
robust/JJ
economic/JJ
activity/NN
,/,
cool/VBP
off/IN
as/RB
expected/VBN
in/IN
late/JJ
1990/CD
and/CC
1991/CD
./.
That/DT
would/MD
leave/VB
Mrs./NNP
Thatcher/NNP
little/JJ
room/NN
for/IN
maneuver/NN
./.
For/IN
the/DT
Tories/NNPS
to/TO
win/VB
the/DT
next/JJ
election/NN
,/,
voters/NNS
will/MD
need/VB
to/TO
sense/VB
economic/JJ
improvement/NN
for/IN
about/IN
a/DT
year/NN
beforehand/RB
./.
Though/NNP
Mrs./NNP
Thatcher/NNP
does/VBZ
n't/RB
need/VB
to/TO
call/VB
an/DT
election/NN
until/IN
June/NNP
1992/CD
,/,
she/PRP
would/MD
prefer/VB
doing/VBG
so/RB
in/IN
late/JJ
1991/CD
./.
``/``
If/IN
the/DT
economy/NN
shows/VBZ
no/DT
sign/NN
of/IN
turning/VBG
around/IN
in/IN
about/IN
year/NN
's/POS
time/NN
,/,
she/PRP
will/MD
be/VB
very/RB
vulnerable/JJ
,/,
''/''
says/VBZ
John/NNP
Barnes/NNP
,/,
a/DT
lecturer/NN
at/IN
the/DT
London/NNP
School/NNP
of/IN
Economics/NNP
./.
There/EX
's/VBZ
an/DT
equally/RB
pressing/VBG
deadline/NN
for/IN
the/DT
government/NN
to/TO
define/VB
its/PRP$
monetary/JJ
and/CC
economic/JJ
ties/NNS
to/TO
the/DT
rest/NN
of/IN
the/DT
European/NNP
Community/NNP
./.
It/PRP
has/VBZ
sent/VBN
mixed/VBN
signals/NNS
about/IN
its/PRP$
willingness/NN
to/TO
take/VB
part/NN
in/IN
the/DT
exchange-rate/NN
mechanism/NN
of/IN
the/DT
European/NNP
Monetary/NNP
System/NNP
,/,
which/WDT
links/VBZ
the/DT
major/JJ
EC/NNP
currencies/NNS
./.
At/IN
a/DT
June/NNP
EC/NNP
summit/NN
,/,
Mrs./NNP
Thatcher/NNP
appeared/VBD
to/TO
ease/VB
her/PRP$
opposition/NN
to/TO
full/JJ
EMS/NNP
membership/NN
,/,
saying/VBG
Britain/NNP
would/MD
join/VB
once/RB
its/PRP$
inflation/NN
rate/NN
fell/VBD
and/CC
the/DT
EC/NNP
liberalized/VBD
capital/NN
movements/NNS
./.
Since/IN
then/RB
,/,
the/DT
government/NN
has/VBZ
left/VBN
observers/NNS
wondering/VBG
if/IN
it/PRP
ever/RB
meant/VBD
to/TO
join/VB
./.
Sir/NNP
Alan/NNP
assailed/VBD
the/DT
monetary/JJ
arrangement/NN
as/IN
``/``
half-baked/JJ
''/''
in/IN
an/DT
article/NN
being/VBG
published/VBN
in/IN
an/DT
American/JJ
economics/NNS
journal/NN
./.
That/DT
produced/VBD
little/JJ
reaction/NN
from/IN
his/PRP$
boss/NN
,/,
reinforcing/VBG
speculation/NN
the/DT
government/NN
would/MD
use/VB
its/PRP$
two/CD
conditions/NNS
as/IN
a/DT
pretext/NN
for/IN
avoiding/VBG
full/JJ
EMS/NNP
membership/NN
./.
Despite/IN
the/DT
departure/NN
of/IN
Mr./NNP
Lawson/NNP
and/CC
Sir/NNP
Alan/NNP
,/,
the/DT
tug-of-war/NN
over/IN
the/DT
EMS/NNP
could/MD
continue/VB
./.
Sir/NNP
Geoffrey/NNP
Howe/NNP
,/,
deputy/JJ
prime/JJ
minister/NN
and/CC
a/DT
Lawson/NNP
ally/NN
on/IN
the/DT
EMS/NNP
,/,
has/VBZ
signaled/VBN
he/PRP
will/MD
continue/VB
pressing/VBG
for/IN
early/JJ
membership/NN
./.
Of/IN
immediate/JJ
concern/NN
is/VBZ
whether/IN
the/DT
Thatcher/NNP
government/NN
will/MD
continue/VB
Mr./NNP
Lawson/NNP
's/POS
policy/NN
of/IN
tracking/VBG
the/DT
monetary/JJ
policies/NNS
of/IN
the/DT
West/NNP
German/NNP
Bundesbank/NNP
and/CC
responding/VBG
in/IN
kind/NN
when/WRB
the/DT
Frankfurt/NNP
authorities/NNS
move/VBP
interest/NN
rates/NNS
./.
Mrs./NNP
Thatcher/NNP
``/``
does/VBZ
n't/RB
like/VB
taking/VBG
orders/NNS
from/IN
foreigners/NNS
,/,
''/''
says/VBZ
Tim/NNP
Congdon/NNP
,/,
economist/NN
with/IN
Gerrard/NNP
&/CC
National/NNP
Holding/NNP
PLC/NNP
./.
As/IN
Conservatives/NNPS
rally/VBP
around/IN
Mrs./NNP
Thatcher/NNP
during/IN
the/DT
crisis/NN
,/,
many/JJ
harbor/VBP
hopes/NNS
last/JJ
week/NN
's/POS
debacle/NN
will/MD
prompt/VB
change/NN
./.
``/``
We/PRP
wo/MD
n't/RB
have/VB
any/DT
more/JJR
of/IN
this/DT
wayward/JJ
behavior/NN
,/,
''/''
says/VBZ
Sir/NNP
Peter/NNP
Hordern/NNP
,/,
a/DT
backbench/JJ
Tory/NNP
member/NN
of/IN
Parliament/NNP
./.
``/``
The/DT
party/NN
is/VBZ
fed/VBN
up/IN
with/IN
sackings/NNS
of/IN
good/JJ
people/NNS
./.
''/''
It/PRP
's/VBZ
an/DT
unrealistic/JJ
expectation/NN
./.
As/RB
long/RB
as/IN
a/DT
decade/NN
ago/IN
,/,
Mrs./NNP
Thatcher/NNP
declared/VBD
she/PRP
did/VBD
n't/RB
want/VB
debate/NN
in/IN
her/PRP$
cabinet/NN
;/:
she/PRP
wanted/VBD
strong/JJ
government/NN
./.
Over/IN
the/DT
weekend/NN
,/,
she/PRP
said/VBD
she/PRP
did/VBD
n't/RB
intend/VB
to/TO
change/VB
her/PRP$
style/NN
and/CC
denied/VBD
she/PRP
is/VBZ
authoritarian/JJ
./.
``/``
Nonsense/NN
,/,
''/''
she/PRP
told/VBD
an/DT
interviewer/NN
yesterday/NN
on/IN
London/NNP
Weekend/NNP
Television/NNP
./.
``/``
I/PRP
am/VBP
staying/VBG
my/PRP$
own/JJ
sweet/JJ
,/,
reasonable/JJ
self/NN
./.
''/''
Joseph/NNP
L./NNP
Dionne/NNP
,/,
chairman/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
McGraw-Hill/NNP
Inc./NNP
,/,
was/VBD
elected/VBN
to/TO
the/DT
board/NN
of/IN
directors/NNS
of/IN
this/DT
electronics/NNS
manufacturer/NN
./.
He/PRP
succeeds/VBZ
the/DT
retiring/VBG
James/NNP
W./NNP
Wilcock/NNP
./.
Base/NNP
Data/NNP
Computers/NNS
that/WDT
once/RB
were/VBD
the/DT
state/NN
of/IN
the/DT
art/NN
,/,
The/DT
marvels/NNS
bought/VBN
three/CD
years/NNS
ago/IN
,/,
Are/VBP
now/RB
obsolete/JJ
./.
As/IN
we/PRP
queasily/RB
start/VBP
The/DT
search/NN
for/IN
replacements/NNS
,/,
we/PRP
know/VBP
The/DT
new/JJ
one/CD
we/PRP
purchase/VBP
in/IN
hopes/NNS
it/PRP
will/MD
do/VB
,/,
Despite/IN
every/DT
wonder/NN
that/WDT
's/VBZ
stated/VBN
,/,
Means/VBZ
more/JJR
speed/NN
,/,
more/JJR
graphics/NNS
,/,
more/JJR
memory/NN
,/,
too/RB
,/,
But/CC
also/RB
more/RBR
quickly/RB
out/IN
-/:
dated/JJ
!/.
--/:
Bern/NNP
Sharfman/NNP
./.
Curdling/NNP
Confession/NNP
I/PRP
know/VBP
when/WRB
dividends/NNS
are/VBP
due/JJ
;/:
When/WRB
bonds/NNS
should/MD
be/VB
retired/VBN
;/:
But/CC
what/WP
gets/VBZ
by/IN
me/PRP
every/DT
time/NN
Is/VBZ
has/VBZ
the/DT
milk/NN
expired/VBN
?/.
--/:
Ralph/NNP
Shaffer/NNP
./.
Daffynition/NNP
Tithing/NN
:/:
Obedience/NN
to/TO
one-tenth/NN
Commandment/NN
./.
--/:
Len/NNP
Elliott/NNP
./.
Wives/NNS
May/MD
Not/RB
Benefit/VB
When/WRB
Men/NN
Do/VB
Chores/NNS
WHEN/WRB
HUSBANDS/NNS
take/VBP
on/IN
more/JJR
housework/NN
,/,
they/PRP
tend/VBP
to/TO
substitute/VB
for/IN
chores/NNS
done/VBN
by/IN
the/DT
kids/NNS
rather/RB
than/IN
by/IN
the/DT
wife/NN
./.
Rand/NNP
Corp./NNP
researchers/NNS
Linda/NNP
Waite/NNP
and/CC
Frances/NNP
Goldscheider/NNP
analyzed/VBD
a/DT
large/JJ
sample/NN
of/IN
married/JJ
women/NNS
with/IN
at/IN
least/JJS
one/CD
child/NN
at/IN
home/NN
between/IN
the/DT
ages/NNS
of/IN
six/CD
and/CC
18/CD
./.
The/DT
women/NNS
indicated/VBD
which/WDT
family/NN
member/NN
usually/RB
did/VBD
various/JJ
household/NN
chores/NNS
and/CC
the/DT
approximate/JJ
share/NN
each/DT
did/VBD
./.
Not/RB
unexpectedly/RB
,/,
wives/NNS
,/,
whether/IN
working/VBG
or/CC
non-working/JJ
,/,
did/VBD
by/IN
far/RB
the/DT
most/JJS
--/:
about/IN
80/CD
%/NN
of/IN
the/DT
shopping/NN
,/,
laundry/NN
and/CC
cooking/NN
,/,
and/CC
about/IN
two-thirds/NNS
of/IN
housecleaning/NN
,/,
washing/VBG
dishes/NNS
,/,
child/NN
care/NN
and/CC
family/NN
paper/NN
work/NN
./.
Only/RB
for/IN
yardwork/NN
and/CC
home/NN
maintenance/NN
did/VBD
women/NNS
do/VB
less/JJR
than/IN
half/NN
./.
But/CC
the/DT
researchers/NNS
found/VBD
that/IN
while/IN
children/NNS
's/POS
household/NN
tasks/NNS
eased/VBD
the/DT
mother/NN
's/POS
burden/NN
appreciably/RB
,/,
the/DT
husband/NN
's/POS
helping/VBG
hand/NN
``/``
appears/VBZ
to/TO
lighten/VB
the/DT
children/NNS
's/POS
load/NN
almost/RB
on/IN
a/DT
one-for-one/JJ
basis/NN
and/CC
to/TO
reduce/VB
the/DT
wife/NN
's/POS
responsibility/NN
only/RB
modestly/RB
./.
''/''
This/DT
pattern/NN
was/VBD
particularly/RB
evident/JJ
among/IN
more/RBR
highly/RB
educated/VBN
couples/NNS
./.
In/IN
these/DT
families/NNS
,/,
husbands/NNS
took/VBD
on/IN
80/CD
%/JJ
more/JJR
chores/NNS
than/IN
in/IN
couples/NNS
with/IN
only/JJ
grammar/NN
school/NN
education/NN
./.
But/CC
the/DT
kids/NNS
with/IN
highly/RB
educated/VBN
parents/NNS
did/VBD
68/CD
%/NN
less/JJR
housework/NN
than/IN
those/DT
in/IN
less-educated/JJ
families/NNS
./.
``/``
It/PRP
is/VBZ
clear/JJ
,/,
''/''
Ms./NNP
Waite/NNP
says/VBZ
,/,
``/``
that/DT
most/JJS
of/IN
the/DT
effect/NN
of/IN
increasing/VBG
education/NN
has/VBZ
been/VBN
to/TO
shift/VB
who/WP
is/VBZ
helping/VBG
the/DT
wife\/mother/NN
./.
Her/PRP$
share/NN
decreases/VBZ
,/,
but/CC
only/RB
slightly/RB
./.
''/''
Nursing/NNP
Home/NNP
Patients/NNPS
Apt/JJ
to/TO
Be/VB
Private/JJ
Payers/NNS
FAR/RB
FEWER/JJR
elderly/JJ
nursing/NN
home/NN
residents/NNS
bankrupt/VBP
themselves/PRP
than/IN
was/VBD
previously/RB
believed/VBN
,/,
two/CD
recent/JJ
studies/NNS
declare/VBP
./.
State/NN
governments/NNS
place/VBP
very/RB
low/JJ
ceilings/NNS
on/IN
how/WRB
much/JJ
property/NN
people/NNS
may/MD
own/VB
or/CC
how/WRB
much/JJ
income/NN
they/PRP
may/MD
keep/VB
if/IN
they/PRP
want/VBP
welfare/NN
help/NN
on/IN
medical/JJ
bills/NNS
./.
Conventional/JJ
wisdom/NN
has/VBZ
long/RB
held/VBN
that/RB
anywhere/RB
from/IN
one-fourth/NN
to/TO
one-half/NN
of/IN
all/DT
elderly/JJ
long-term/JJ
care/NN
patients/NNS
are/VBP
obliged/VBN
to/TO
spend/VB
themselves/PRP
into/IN
poverty/NN
before/IN
qualifying/VBG
for/IN
Medicaid/NNP
assistance/NN
./.
But/CC
separate/JJ
reports/NNS
from/IN
Joshua/NNP
Weiner/NNP
and/CC
Denise/NNP
Spence/NNP
of/IN
the/DT
Brookings/NNP
Institution/NNP
and/CC
Korbin/NNP
Liu/NNP
of/IN
the/DT
Urban/NNP
Institute/NNP
find/VBP
that/IN
``/``
a/DT
surprisingly/RB
small/JJ
proportion/NN
''/''
--/:
only/RB
about/IN
10/CD
%/NN
--/:
of/IN
residents/NNS
start/VBP
out/IN
as/RB
private/JJ
payers/NNS
but/CC
``/``
spend/VBP
down/IN
''/''
to/TO
Medicaid/NNP
levels/NNS
in/IN
a/DT
single/JJ
nursing/NN
home/NN
stay/NN
before/IN
they/PRP
die/VBP
or/CC
are/VBP
discharged/VBN
./.
Another/DT
one-third/NN
are/VBP
already/RB
on/IN
Medicaid/NNP
when/WRB
they/PRP
enter/VBP
the/DT
nursing/NN
homes/NNS
,/,
a/DT
considerably/RB
higher/JJR
proportion/NN
than/IN
the/DT
analysts/NNS
anticipated/VBN
./.
But/CC
a/DT
remarkably/RB
high/JJ
percentage/NN
--/:
over/IN
half/DT
--/:
are/VBP
private/JJ
payers/NNS
throughout/IN
their/PRP$
stay/NN
,/,
even/RB
a/DT
fairly/RB
lengthy/JJ
one/CD
./.
About/IN
one-third/NN
pay/NN
out/IN
of/IN
their/PRP$
own/JJ
pockets/NNS
,/,
while/IN
the/DT
rest/NN
are/VBP
covered/VBN
throughout/IN
by/IN
Medicare/NNP
,/,
private/JJ
insurers/NNS
or/CC
the/DT
Veterans/NNPS
Administration/NNP
./.
Both/DT
reports/NNS
are/VBP
based/VBN
on/IN
several/JJ
thousand/CD
patients/NNS
sampled/VBN
in/IN
a/DT
1985/CD
nationwide/JJ
government/NN
survey/NN
./.
The/DT
Brookings/NNP
and/CC
Urban/NNP
Institute/NNP
authors/NNS
caution/VBP
,/,
however/RB
,/,
that/IN
most/JJS
nursing/NN
home/NN
stays/NNS
are/VBP
of/IN
comparatively/RB
short/JJ
duration/NN
,/,
and/CC
reaching/VBG
the/DT
Medicaid/NNP
level/NN
is/VBZ
more/RBR
likely/JJ
with/IN
an/DT
unusually/RB
long/JJ
stay/NN
or/CC
repeated/VBN
stays/NNS
./.
Moreover/RB
,/,
they/PRP
note/VBP
,/,
those/DT
who/WP
manage/VBP
to/TO
pay/VB
their/PRP$
own/JJ
way/NN
often/RB
do/VBP
so/RB
only/RB
by/IN
selling/VBG
their/PRP$
homes/NNS
,/,
using/VBG
up/IN
life/NN
savings/NNS
or/CC
drawing/VBG
heavily/RB
on/IN
children/NNS
and/CC
other/JJ
relatives/NNS
./.
Reagan/NNP
Era/NN
Young/NN
Hold/VBP
Liberal/JJ
Views/NNS
THE/DT
REAGAN/NNP
generation/NN
young/JJ
men/NNS
and/CC
women/NNS
reaching/VBG
political/JJ
maturity/NN
during/IN
Ronald/NNP
Reagan/NNP
's/POS
presidency/NN
--/:
are/VBP
firmly/RB
liberal/JJ
on/IN
race/NN
and/CC
gender/NN
,/,
according/VBG
to/TO
NORC/NNP
,/,
the/DT
social/JJ
science/NN
research/NN
center/NN
at/IN
the/DT
University/NNP
of/IN
Chicago/NNP
./.
Many/JJ
political/JJ
analysts/NNS
have/VBP
speculated/VBN
that/IN
the/DT
Reagan/NNP
years/NNS
would/MD
produce/VB
a/DT
staunchly/RB
conservative/JJ
younger/JJR
generation/NN
./.
NORC/NNP
's/POS
most/JJS
recent/JJ
opinion/NN
surveys/NNS
find/VBP
the/DT
youngest/JJS
adults/NNS
indeed/RB
somewhat/RB
more/JJR
pro-Reagan/JJ
and/CC
pro-Republican/JJ
than/IN
other/JJ
adults/NNS
./.
But/CC
,/,
says/VBZ
chief/NN
investigator/NN
Tom/NNP
Smith/NNP
,/,
this/DT
``/``
does/VBZ
not/RB
translate/VB
into/IN
support/NN
for/IN
conservatism/NN
in/IN
general/JJ
or/CC
into/IN
conservative/JJ
positions/NNS
on/IN
feminist/JJ
and/CC
civil/JJ
rights/NNS
issues/NNS
./.
''/''
Answers/NNS
to/TO
a/DT
dozen/NN
questions/NNS
in/IN
the/DT
1986/CD
,/,
1987/CD
,/,
1988/CD
and/CC
1989/CD
national/JJ
surveys/NNS
reveal/VBP
that/IN
men/NNS
and/CC
women/NNS
in/IN
the/DT
18/CD
to/TO
24/CD
age/NN
bracket/NN
are/VBP
considerably/RB
more/RBR
liberal/JJ
on/IN
race/NN
and/CC
gender/VB
than/IN
were/VBD
the/DT
18/CD
to/TO
24/CD
year/NN
olds/NNS
in/IN
NORC/NNP
's/POS
polling/NN
in/IN
the/DT
early/JJ
1970s/CD
and/CC
early/JJ
1980s/CD
./.
They/PRP
were/VBD
also/RB
as/RB
liberal/JJ
or/CC
more/RBR
liberal/JJ
than/IN
any/DT
other/JJ
age/NN
group/NN
in/IN
the/DT
1986/CD
through/IN
1989/CD
surveys/NNS
./.
For/IN
example/NN
,/,
66/CD
%/NN
of/IN
the/DT
18/CD
to/TO
24/CD
year/NN
olds/NNS
in/IN
the/DT
four/CD
latest/JJS
surveys/NNS
favored/VBD
an/DT
``/``
open/JJ
housing/NN
''/''
law/NN
prohibiting/VBG
homeowners/NNS
from/IN
refusing/VBG
on/IN
racial/JJ
grounds/NNS
to/TO
sell/VB
to/TO
prospective/JJ
buyers/NNS
./.
That/DT
compares/VBZ
with/IN
58/CD
%/NN
of/IN
the/DT
similar/JJ
age/NN
group/NN
in/IN
the/DT
1980/CD
through/IN
1982/CD
surveys/NNS
and/CC
55/CD
%/NN
in/IN
the/DT
1972/CD
through/IN
1975/CD
surveys/NNS
./.
Asked/VBN
whether/IN
they/PRP
agreed/VBD
or/CC
disagreed/VBD
with/IN
the/DT
claim/NN
that/IN
men/NNS
are/VBP
emotionally/RB
better/RB
suited/VBN
to/TO
politics/NNS
than/IN
women/NNS
,/,
70/CD
%/NN
of/IN
the/DT
Reagan/NNP
generation/NN
disagreed/VBD
,/,
compared/VBN
with/IN
under/IN
60/CD
%/NN
of/IN
younger/JJR
men/NNS
and/CC
women/NNS
in/IN
the/DT
earlier/JJR
years/NNS
./.
Odds/NNPS
and/CC
Ends/NNPS
SEPARATED/VBN
and/CC
divorced/VBN
men/NNS
and/CC
women/NNS
are/VBP
far/RB
more/RBR
likely/JJ
to/TO
be/VB
smokers/NNS
than/IN
married/JJ
persons/NNS
,/,
the/DT
Centers/NNPS
for/IN
Disease/NNP
Control/NNP
discovers/VBZ
.../:
./.
Graduate/NN
students/NNS
are/VBP
taking/VBG
longer/RBR
than/IN
ever/RB
to/TO
get/VB
their/PRP$
doctor/NN
of/IN
philosophy/NN
degrees/NNS
,/,
the/DT
National/NNP
Research/NNP
Council/NNP
says/VBZ
./.
It/PRP
estimates/VBZ
the/DT
time/NN
between/IN
college/NN
graduation/NN
and/CC
the/DT
awarding/NN
of/IN
a/DT
Ph./NNP
D./NNP
has/VBZ
lengthened/VBN
by/IN
30/CD
%/NN
over/IN
the/DT
past/JJ
20/CD
years/NNS
,/,
with/IN
the/DT
average/JJ
gap/NN
now/RB
ranging/VBG
from/IN
about/IN
7.4/CD
years/NNS
in/IN
the/DT
physical/JJ
sciences/NNS
to/TO
16.2/CD
years/NNS
in/IN
education/NN
./.
October/NNP
was/VBD
an/DT
edgy/JJ
month/NN
for/IN
the/DT
practitioners/NNS
of/IN
glasnost/NN
,/,
the/DT
official/JJ
Soviet/JJ
policy/NN
of/IN
allowing/VBG
more/JJR
candor/NN
from/IN
the/DT
nation/NN
's/POS
media/NNS
./.
For/IN
one/CD
of/IN
the/DT
superstars/NNS
of/IN
glasnost/NN
,/,
Vitaly/NNP
Korotich/NNP
,/,
editor/NN
of/IN
the/DT
trail-blazing/JJ
weekly/JJ
Ogonyok/NNP
,/,
Friday/NNP
,/,
Oct./NNP
20/CD
was/VBD
a/DT
somersaulting/JJ
day/NN
that/WDT
turned/VBD
from/IN
tension/NN
to/TO
elation/NN
./.
He/PRP
had/VBD
been/VBN
summoned/VBN
to/TO
the/DT
Central/NNP
Committee/NNP
of/IN
the/DT
Soviet/NNP
Communist/NNP
Party/NNP
,/,
after/IN
he/PRP
finished/VBD
his/PRP$
lunch/NN
at/IN
the/DT
Savoy/NNP
Hotel/NNP
,/,
an/DT
unlikely/JJ
prelude/NN
to/TO
a/DT
bureaucratic/JJ
brow-beating/NN
:/:
Eight-foot-tall/JJ
Rubenesquely/JJ
naked/JJ
ladies/NNS
float/VBP
on/IN
their/PRP$
canvases/NNS
toward/IN
a/DT
ceiling/NN
teeming/VBG
with/IN
cherubs/NNS
,/,
all/DT
surrounded/VBN
by/IN
gilt/NN
laid/VBN
on/IN
with/IN
a/DT
pastry/NN
chef/NN
's/POS
trowel/NN
and/CC
supported/VBN
by/IN
marble/NN
corinthian/JJ
columns/NNS
whose/WP$
capitals/NNS
are/VBP
fluting/NN
fountains/NNS
of/IN
gold/NN
./.
Why/WRB
had/VBD
Mr./NNP
Korotich/NNP
been/VBN
called/VBN
?/.
``/``
I/PRP
told/VBD
my/PRP$
driver/NN
,/,
''/''
he/PRP
said/VBD
,/,
``/``
that/IN
he/PRP
was/VBD
taking/VBG
my/PRP$
butt/NN
to/TO
the/DT
Central/NNP
Committee/NNP
so/IN
they/PRP
can/MD
.../:
''/''
whack/VB
,/,
whack/VB
,/,
whack/VB
his/PRP$
hand/NN
made/VBD
vigorous/JJ
spanking/JJ
gestures/NNS
on/IN
his/PRP$
left/JJ
palm/NN
./.
``/``
They/PRP
feel/VBP
the/DT
need/NN
from/IN
time/NN
to/TO
time/NN
to/TO
`/``
educate/VB
'/''
me/PRP
./.
''/''
And/CC
indeed/RB
,/,
as/IN
he/PRP
later/RB
reported/VBD
,/,
that/DT
was/VBD
the/DT
import/NN
of/IN
the/DT
meeting/NN
./.
Anxious/JJ
allies/NNS
of/IN
President/NNP
Mikhail/NNP
Gorbachev/NNP
are/VBP
cautioning/VBG
media/NNS
leaders/NNS
to/TO
take/VB
it/PRP
easy/RB
,/,
to/TO
be/VB
careful/JJ
not/RB
to/TO
do/VB
anything/NN
that/WDT
could/MD
be/VB
used/VBN
by/IN
Mr./NNP
Gorbachev/NNP
's/POS
opponents/NNS
./.
The/DT
government/NN
is/VBZ
nervous/JJ
./.
According/VBG
to/TO
Mr./NNP
Korotich/NNP
,/,
who/WP
was/VBD
present/JJ
,/,
Mr./NNP
Gorbachev/NNP
's/POS
publicized/VBN
tongue-lashing/NN
of/IN
the/DT
press/NN
on/IN
Oct./NNP
13/CD
was/VBD
more/JJR
of/IN
a/DT
plea/NN
:/:
``/``
Be/VB
careful/JJ
boys/NNS
;/:
use/VB
good/JJ
judgment/NN
./.
We/PRP
're/VBP
standing/VBG
in/IN
gasoline/NN
,/,
so/RB
do/VB
n't/RB
smoke/VB
!/.
''/''
U.S./NNP
and/CC
northern/JJ
European/JJ
diplomats/NNS
confirm/VBP
Mr./NNP
Korotich/NNP
's/POS
assessment/NN
that/IN
glasnost/NN
is/VBZ
in/IN
no/DT
immediate/JJ
danger/NN
./.
In/IN
fact/NN
,/,
a/DT
very/RB
high-ranking/JJ
Soviet/JJ
official/NN
told/VBD
an/DT
American/JJ
official/NN
at/IN
a/DT
diplomatic/JJ
dinner/NN
that/IN
no/DT
change/NN
in/IN
the/DT
policy/NN
was/VBD
contemplated/VBN
./.
The/DT
day/NN
after/IN
that/DT
conversation/NN
at/IN
the/DT
residence/NN
of/IN
the/DT
U.S./NNP
ambassador/NN
,/,
the/DT
Brezhnevite/NNP
editor/NN
of/IN
Pravda/NNP
,/,
Victor/NNP
Afnasjev/NNP
,/,
was/VBD
replaced/VBN
by/IN
a/DT
college/NN
classmate/NN
of/IN
Mr./NNP
Gorbachev/NNP
's/POS
./.
Brezhnevite/NNP
holdovers/NNS
have/VBP
more/JJR
to/TO
fear/VB
from/IN
Mr./NNP
Gorbachev/NNP
than/IN
the/DT
verbal/JJ
spanking/NN
he/PRP
gave/VBD
to/TO
the/DT
press/NN
./.
At/IN
the/DT
end/NN
of/IN
the/DT
very/JJ
week/NN
in/IN
which/WDT
Mr./NNP
Korotich/NNP
was/VBD
called/VBN
to/TO
the/DT
Central/NNP
Committee/NNP
,/,
Ogonyok/NNP
was/VBD
again/RB
demonstrating/VBG
its/PRP$
independence/NN
by/IN
printing/VBG
a/DT
poll/NN
that/WDT
showed/VBD
that/IN
35/CD
%/NN
of/IN
the/DT
Soviet/JJ
population/NN
,/,
a/DT
plurality/NN
,/,
believed/VBD
that/IN
Mr./NNP
Gorbachev/NNP
's/POS
economic/JJ
reforms/NNS
,/,
perestroika/FW
,/,
would/MD
result/VB
in/IN
only/JJ
insignificant/JJ
change/NN
./.
A/DT
good/JJ
measurement/NN
of/IN
the/DT
popularity/NN
of/IN
ice-breaker/JJ
journals/NNS
like/IN
Ogonyok/NNP
is/VBZ
circulation/NN
./.
When/WRB
Mr./NNP
Korotich/NNP
took/VBD
it/PRP
over/IN
in/IN
1986/CD
,/,
it/PRP
sold/VBD
250,000/CD
copies/NNS
;/:
today/NN
it/PRP
sells/VBZ
3.4/CD
million/CD
./.
Pravda/NNP
,/,
meanwhile/RB
,/,
has/VBZ
retained/VBN
only/RB
57/CD
%/NN
of/IN
its/PRP$
1986/CD
readership/NN
./.
Glasnost/FW
has/VBZ
made/VBN
celebrities/NNS
of/IN
men/NNS
like/IN
Mr./NNP
Korotich/NNP
./.
Prevented/VBN
by/IN
the/DT
Communist/NNP
Party/NNP
from/IN
getting/VBG
on/IN
its/PRP$
slate/NN
of/IN
nominees/NNS
for/IN
the/DT
new/JJ
Supreme/NNP
Soviet/NNP
,/,
he/PRP
stood/VBD
as/IN
an/DT
independent/JJ
candidate/NN
for/IN
Congress/NNP
from/IN
his/PRP$
native/JJ
Ukraine/NNP
and/CC
won/VBD
with/IN
84/CD
%/NN
of/IN
the/DT
vote/NN
./.
The/DT
same/JJ
evening/NN
that/IN
he/PRP
was/VBD
summoned/VBN
for/IN
a/DT
warning/NN
from/IN
the/DT
Party/NNP
,/,
he/PRP
was/VBD
cheered/VBN
by/IN
thousands/NNS
of/IN
his/PRP$
supporters/NNS
at/IN
a/DT
rally/NN
of/IN
what/WP
can/MD
only/RB
be/VB
called/VBN
the/DT
Korotich/NNP
party/NN
./.
But/CC
as/RB
astounding/JJ
as/IN
the/DT
changes/NNS
that/WDT
have/VBP
already/RB
occurred/VBN
are/VBP
,/,
there/EX
is/VBZ
a/DT
fragility/NN
to/TO
glasnost/FW
./.
Censorship/NN
is/VBZ
n't/RB
a/DT
Marxist/JJ
invention/NN
./.
The/DT
czars/NNS
were/VBD
no/RB
civil/JJ
libertarians/NNS
./.
As/RB
late/RB
as/IN
the/DT
1890s/CD
,/,
the/DT
Russian/JJ
government/NN
prevented/VBD
any/DT
coverage/NN
of/IN
famines/NNS
./.
It/PRP
even/RB
directed/VBD
newspapers/NNS
not/RB
to/TO
publish/VB
anything/NN
that/WDT
might/MD
stain/VB
the/DT
honor/NN
of/IN
the/DT
Turkish/JJ
sultan/NN
's/POS
wives/NNS
./.
So/IN
glasnost/FW
is/VBZ
not/RB
a/DT
value/NN
woven/VBN
with/IN
steel/NN
threads/NNS
into/IN
the/DT
fabric/NN
of/IN
Russian/JJ
society/NN
./.
It/PRP
is/VBZ
an/DT
admirable/JJ
public/JJ
relations/NNS
program/NN
initiated/VBN
by/IN
a/DT
single/JJ
political/JJ
leader/NN
during/IN
a/DT
four-year/JJ
blink/NN
of/IN
history/NN
./.
It/PRP
is/VBZ
public/JJ
relations/NNS
of/IN
the/DT
highest/JJS
sophistication/NN
,/,
that/WDT
recognizes/VBZ
that/IN
credibility/NN
is/VBZ
enhanced/VBN
by/IN
honesty/NN
--/:
up/IN
to/TO
a/DT
point/NN
./.
What/WP
is/VBZ
that/DT
point/NN
?/.
Will/MD
Ogonyok/NNP
begin/VB
a/DT
series/NN
of/IN
reports/NNS
analyzing/VBG
the/DT
failures/NNS
of/IN
perestroika/FW
?/.
``/``
I/PRP
'd/MD
be/VB
destroying/VBG
myself/PRP
,/,
''/''
replies/VBZ
Mr./NNP
Korotich/NNP
,/,
who/WP
then/RB
asks/VBZ
,/,
``/``
What/WP
would/MD
that/DT
accomplish/VB
?/.
''/''
His/PRP$
answer/NN
reveals/VBZ
his/PRP$
vulnerability/NN
--/:
it/PRP
also/RB
draws/VBZ
the/DT
line/NN
that/IN
Soviet/JJ
society/NN
must/MD
cross/VB
to/TO
enter/VB
the/DT
normal/JJ
dialogue/NN
of/IN
Western/JJ
culture/NN
./.
It/PRP
is/VBZ
the/DT
line/NN
beyond/IN
which/WDT
the/DT
press/NN
can/MD
report/VB
not/RB
only/RB
on/IN
the/DT
bankruptcy/NN
of/IN
factories/NNS
but/CC
on/IN
the/DT
failures/NNS
of/IN
even/RB
admirable/JJ
leaders/NNS
./.
Mr./NNP
Ayers/NNP
is/VBZ
editor/NN
and/CC
publisher/NN
of/IN
the/DT
Anniston/NNP
,/,
Ala./NNP
,/,
Star/NNP
./.
A/DT
state/NN
trial/NN
judge/NN
in/IN
Illinois/NNP
gave/VBD
preliminary/JJ
approval/NN
to/TO
a/DT
proposed/VBN
settlement/NN
of/IN
a/DT
suit/NN
against/IN
a/DT
Bank/NNP
of/IN
New/NNP
York/NNP
Co./NNP
unit/NN
,/,
Irving/NNP
Trust/NNP
Co./NNP
,/,
over/IN
the/DT
interest/NN
rates/NNS
on/IN
Irving/NNP
's/POS
former/JJ
One/CD
Wall/NNP
Street/NNP
Account/NNP
money-market/JJ
deposit/NN
accounts/NNS
./.
Judge/NNP
Albert/NNP
Green/NNP
,/,
in/IN
Cook/NNP
County/NNP
Circuit/NNP
Court/NNP
in/IN
Chicago/NNP
,/,
also/RB
recognized/VBD
the/DT
suit/NN
,/,
filed/VBN
last/JJ
May/NNP
by/IN
Robert/NNP
and/CC
Cynthia/NNP
Langendorf/NNP
,/,
as/IN
a/DT
class/NN
action/NN
covering/VBG
thousands/NNS
of/IN
Irving/NNP
customers/NNS
./.
The/DT
plaintiffs/NNS
accused/VBD
Irving/NNP
of/IN
paying/VBG
less/JJR
interest/NN
than/IN
promised/VBN
in/IN
a/DT
marketing/NN
brochure/NN
./.
Irving/NNP
maintained/VBD
--/:
and/CC
still/RB
does/VBZ
--/:
that/IN
its/PRP$
actions/NNS
were/VBD
proper/JJ
under/IN
its/PRP$
account/NN
agreements/NNS
with/IN
customers/NNS
./.
Under/IN
the/DT
proposed/VBN
settlement/NN
,/,
customers/NNS
with/IN
valid/JJ
claims/NNS
--/:
to/TO
be/VB
submitted/VBN
by/IN
Dec./NNP
15/CD
--/:
will/MD
receive/VB
``/``
valuable/JJ
bank/NN
services/NNS
,/,
''/''
such/JJ
as/IN
credit/NN
cards/NNS
with/IN
reduced/VBN
finance/NN
charges/NNS
,/,
for/IN
two/CD
years/NNS
./.
Larry/NNP
Drury/NNP
,/,
attorney/NN
for/IN
the/DT
plaintiffs/NNS
,/,
valued/VBD
the/DT
settlement/NN
at/IN
between/IN
$/$
6/CD
million/CD
and/CC
$/$
8/CD
million/CD
./.
A/DT
Bank/NNP
of/IN
New/NNP
York/NNP
spokesman/NN
in/IN
Manhattan/NNP
,/,
Owen/NNP
Brady/NNP
,/,
said/VBD
,/,
``/``
That/DT
's/VBZ
the/DT
maximum/JJ
,/,
outside/JJ
figure/NN
./.
''/''
Federal/NNP
Reserve/NNP
critics/NNS
used/VBD
to/TO
complain/VB
of/IN
``/``
stop/VB
and/CC
go/VB
''/''
monetary/JJ
policies/NNS
./.
They/PRP
claimed/VBD
that/IN
the/DT
Fed/NNP
would/MD
first/RB
give/VB
a/DT
green/JJ
light/NN
to/TO
the/DT
economy/NN
by/IN
making/VBG
credit/NN
readily/RB
available/JJ
and/CC
then/RB
turn/VB
on/IN
the/DT
red/JJ
and/CC
bring/VB
growth/NN
to/TO
a/DT
screeching/JJ
halt/NN
./.
But/CC
under/IN
Alan/NNP
Greenspan/NNP
that/WDT
has/VBZ
changed/VBN
./.
A/DT
supremely/RB
cautious/JJ
man/NN
,/,
the/DT
Fed/NNP
chairman/NN
is/VBZ
forever/RB
blinking/RB
yellow/JJ
./.
Indeed/RB
,/,
his/PRP$
caution/NN
has/VBZ
become/VBN
legendary/JJ
within/IN
the/DT
government/NN
./.
He/PRP
fusses/VBZ
endlessly/RB
over/IN
economic/JJ
statistics/NNS
,/,
dissecting/VBG
them/PRP
in/IN
dozens/NNS
of/IN
ways/NNS
,/,
probing/VBG
for/IN
hours/NNS
in/IN
search/NN
of/IN
potential/JJ
problems/NNS
./.
After/IN
thoroughly/RB
digesting/VBG
reams/NNS
of/IN
information/NN
,/,
he/PRP
often/RB
concludes/VBZ
that/IN
more/JJR
data/NNS
are/VBP
needed/VBN
,/,
and/CC
when/WRB
he/PRP
finally/RB
decides/VBZ
to/TO
act/VB
,/,
his/PRP$
movements/NNS
sometimes/RB
seem/VBP
excrutiatingly/RB
small/JJ
./.
Such/JJ
caution/NN
was/VBD
evident/JJ
after/IN
the/DT
recent/JJ
Friday-the-13th/JJ
stock/NN
market/NN
plunge/NN
./.
Some/DT
Bush/NNP
administration/NN
officials/NNS
urged/VBD
Mr./NNP
Greenspan/NNP
to/TO
make/VB
an/DT
immediate/JJ
public/JJ
announcement/NN
of/IN
his/PRP$
plans/NNS
to/TO
provide/VB
ample/JJ
credit/NN
to/TO
the/DT
markets/NNS
./.
But/CC
he/PRP
refused/VBD
,/,
claiming/VBG
that/IN
he/PRP
wanted/VBD
to/TO
see/VB
what/WP
happened/VBD
Monday/NNP
morning/NN
before/IN
making/VBG
any/DT
public/JJ
statement/NN
./.
Mr./NNP
Greenspan/NNP
's/POS
decision/NN
to/TO
keep/VB
quiet/NN
also/RB
prompted/VBD
a/DT
near-mutiny/NN
within/IN
the/DT
Fed/NNP
's/POS
ranks/NNS
./.
A/DT
``/``
senior/JJ
Fed/NNP
official/NN
''/''
spoke/VBD
on/IN
Saturday/NNP
after/IN
the/DT
market/NN
swoon/NN
to/TO
both/PDT
the/DT
Washington/NNP
Post/NNP
and/CC
the/DT
New/NNP
York/NNP
Times/NNP
,/,
saying/VBG
the/DT
Fed/NNP
was/VBD
prepared/VBN
to/TO
provide/VB
as/IN
much/JJ
credit/NN
as/IN
the/DT
markets/NNS
needed/VBD
./.
The/DT
statement/NN
angered/VBD
Chairman/NNP
Greenspan/NNP
,/,
but/CC
it/PRP
was/VBD
greeted/VBN
with/IN
applause/NN
by/IN
the/DT
Bush/NNP
administration/NN
and/CC
the/DT
financial/JJ
markets/NNS
./.
And/CC
,/,
while/IN
the/DT
mutinous/JJ
Fed/NNP
member/NN
has/VBZ
n't/RB
gone/VBN
public/JJ
,/,
some/DT
Fed/NNP
governors/NNS
,/,
most/RBS
notably/RB
Vice/NNP
Chairman/NNP
Manuel/NNP
Johnson/NNP
,/,
are/VBP
known/VBN
to/TO
have/VB
disagreed/VBN
with/IN
the/DT
chairman/NN
's/POS
decision/NN
to/TO
remain/VB
silent/JJ
./.
Ironically/RB
,/,
the/DT
anonymous/JJ
official/NN
's/POS
comments/NNS
have/VBP
earned/VBN
some/DT
plaudits/NNS
for/IN
Mr./NNP
Greenspan/NNP
,/,
who/WP
is/VBZ
mistakenly/RB
seen/VBN
as/IN
the/DT
source/NN
./.
At/IN
a/DT
hearing/NN
last/JJ
week/NN
,/,
Democratic/JJ
Sen./NNP
Chris/NNP
Dodd/NNP
of/IN
Connecticut/NNP
told/VBD
Treasury/NNP
Secretary/NNP
Nicholas/NNP
Brady/NNP
that/IN
``/``
Chairman/NNP
Greenspan/NNP
's/POS
''/''
announcement/NN
over/IN
the/DT
Oct./NNP
13/CD
weekend/NN
was/VBD
a/DT
``/``
very/RB
important/JJ
statement/NN
./.
''/''
Mr./NNP
Brady/NNP
hesitantly/RB
replied/VBD
that/IN
he/PRP
was/VBD
n't/RB
sure/JJ
whether/IN
Mr./NNP
Greenspan/NNP
``/``
made/VBD
a/DT
statement/NN
himself/PRP
,/,
or/CC
whether/IN
that/DT
was/VBD
a/DT
newspaper/NN
report/NN
./.
''/''
The/DT
Fed/NNP
chairman/NN
's/POS
caution/NN
was/VBD
apparent/JJ
again/RB
on/IN
the/DT
Monday/NNP
morning/NN
after/IN
the/DT
market/NN
's/POS
plunge/NN
,/,
when/WRB
the/DT
central/JJ
bank/NN
took/VBD
only/RB
modest/JJ
steps/NNS
to/TO
aid/VB
the/DT
markets/NNS
./.
A/DT
surprisingly/RB
small/JJ
amount/NN
of/IN
reserves/NNS
was/VBD
added/VBN
to/TO
the/DT
banking/NN
system/NN
./.
And/CC
,/,
by/IN
the/DT
end/NN
of/IN
that/DT
week/NN
,/,
the/DT
key/JJ
federal/JJ
funds/NNS
interest/NN
rate/NN
,/,
which/WDT
is/VBZ
largely/RB
controlled/VBN
by/IN
the/DT
Fed/NNP
,/,
had/VBD
settled/VBN
at/IN
8.75/CD
%/NN
,/,
barely/RB
changed/VBN
from/IN
the/DT
level/NN
of/IN
just/RB
under/IN
9/CD
%/NN
that/WDT
prevailed/VBD
the/DT
previous/JJ
week/NN
./.
Bush/NNP
administration/NN
officials/NNS
appear/VBP
increasingly/RB
concerned/VBN
that/IN
Mr./NNP
Greenspan/NNP
is/VBZ
cautious/JJ
to/TO
a/DT
fault/NN
./.
Signs/NNS
of/IN
growing/VBG
weakness/NN
in/IN
the/DT
economy/NN
,/,
paired/VBN
with/IN
indications/NNS
that/IN
inflation/NN
is/VBZ
staying/VBG
well/RB
under/IN
control/NN
,/,
have/VBP
caused/VBN
them/PRP
to/TO
wonder/VB
why/WRB
the/DT
Fed/NNP
chairman/NN
is/VBZ
so/RB
grudging/JJ
in/IN
reducing/VBG
rates/NNS
./.
Those/DT
concerns/NNS
are/VBP
n't/RB
expressed/VBN
in/IN
public/NN
./.
In/IN
fact/NN
,/,
the/DT
administration/NN
and/CC
the/DT
Fed/NNP
have/VBP
been/VBN
going/VBG
out/IN
of/IN
their/PRP$
way/NN
in/IN
the/DT
past/JJ
two/CD
weeks/NNS
to/TO
dispel/VB
any/DT
impression/NN
that/IN
they/PRP
are/VBP
at/IN
odds/NNS
,/,
fearing/VBG
stories/NNS
about/IN
an/DT
administration-Fed/JJ
split/NN
added/VBN
to/TO
the/DT
stock/NN
market/NN
's/POS
jitters/NNS
./.
Still/RB
,/,
the/DT
split/NN
is/VBZ
there/RB
./.
The/DT
administration/NN
's/POS
concerns/NNS
are/VBP
understandable/JJ
./.
The/DT
economy/NN
is/VBZ
showing/VBG
signs/NNS
of/IN
weakness/NN
,/,
particularly/RB
among/IN
manufacturers/NNS
./.
Exports/NNS
,/,
which/WDT
played/VBD
a/DT
key/JJ
role/NN
in/IN
fueling/VBG
growth/NN
over/IN
the/DT
last/JJ
two/CD
years/NNS
,/,
seem/VBP
to/TO
have/VB
stalled/VBN
./.
Factory/NN
payrolls/NNS
and/CC
production/NN
fell/VBD
in/IN
September/NNP
,/,
and/CC
the/DT
auto/NN
industry/NN
and/CC
housing/NN
are/VBP
in/IN
a/DT
severe/JJ
crunch/NN
./.
But/CC
Mr./NNP
Greenspan/NNP
remains/VBZ
reluctant/JJ
to/TO
loosen/VB
policy/NN
,/,
partly/RB
because/IN
he/PRP
faces/VBZ
a/DT
phalanx/NN
of/IN
presidents/NNS
of/IN
regional/JJ
Fed/NNP
banks/NNS
who/WP
oppose/VBP
credit/NN
easing/NN
./.
In/IN
addition/NN
,/,
the/DT
chairman/NN
has/VBZ
a/DT
wary/JJ
eye/NN
aimed/VBN
a/DT
year/NN
or/CC
two/CD
down/IN
the/DT
road/NN
./.
Inflation/NN
may/MD
be/VB
stable/JJ
at/IN
the/DT
moment/NN
,/,
running/VBG
at/IN
about/IN
4.5/CD
%/NN
./.
But/CC
if/IN
the/DT
Fed/NNP
eases/VBZ
too/RB
soon/RB
,/,
Mr./NNP
Greenspan/NNP
fears/VBZ
,/,
prices/NNS
may/MD
begin/VB
to/TO
accelerate/VB
again/RB
next/JJ
year/NN
./.
Moreover/RB
,/,
if/IN
the/DT
Fed/NNP
holds/VBZ
tight/RB
,/,
it/PRP
may/MD
be/VB
able/JJ
gradually/RB
to/TO
reduce/VB
inflation/NN
,/,
moving/VBG
toward/IN
the/DT
zero-inflation/NN
goal/NN
that/IN
the/DT
Fed/NNP
chairman/NN
embraced/VBD
in/IN
testimony/NN
to/TO
Congress/NNP
last/JJ
week/NN
./.
So/IN
far/RB
,/,
Mr./NNP
Greenspan/NNP
's/POS
cautious/JJ
approach/NN
to/TO
policy/NN
has/VBZ
served/VBN
both/DT
him/PRP
and/CC
the/DT
nation/NN
well/RB
./.
His/PRP$
hand/NN
on/IN
the/DT
monetary/JJ
tiller/NN
seems/VBZ
one/CD
reason/NN
why/WRB
the/DT
economy/NN
next/JJ
month/NN
seems/VBZ
highly/RB
likely/JJ
to/TO
begin/VB
an/DT
unprecedented/JJ
eighth/JJ
year/NN
of/IN
peacetime/NN
growth/NN
without/IN
a/DT
recession/NN
./.
``/``
We/PRP
've/VBP
gotten/VBN
through/IN
two/CD
stock/NN
market/NN
crashes/NNS
,/,
and/CC
we/PRP
've/VBP
gone/VBN
through/IN
an/DT
election/NN
without/IN
any/DT
major/JJ
problems/NNS
,/,
''/''
says/VBZ
David/NNP
Hale/NNP
,/,
an/DT
economist/NN
of/IN
Kemper/NNP
Financial/NNP
Services/NNPS
./.
``/``
I/PRP
think/VBP
you/PRP
have/VBP
to/TO
give/VB
Greenspan/NNP
a/DT
good/JJ
rating/NN
./.
''/''
But/CC
such/JJ
caution/NN
is/VBZ
no/DT
guarantee/NN
against/IN
mistakes/NNS
./.
The/DT
Fed/NNP
's/POS
reluctance/NN
to/TO
ease/VB
credit/NN
now/RB
could/MD
be/VB
laying/VBG
the/DT
groundwork/NN
for/IN
a/DT
new/JJ
recession/NN
,/,
perhaps/RB
starting/VBG
early/JJ
next/JJ
year/NN
./.
If/IN
that/DT
happens/VBZ
,/,
Chairman/NNP
Greenspan/NNP
could/MD
well/RB
become/VB
an/DT
open/JJ
target/NN
./.
Already/RB
,/,
Congress/NNP
is/VBZ
toying/VBG
with/IN
legislation/NN
to/TO
curb/VB
the/DT
Fed/NNP
's/POS
independence/NN
./.
If/IN
the/DT
economy/NN
turns/VBZ
down/IN
,/,
such/JJ
proposals/NNS
could/MD
gain/VB
strong/JJ
momentum/NN
./.
The/DT
following/VBG
issues/NNS
were/VBD
recently/RB
filed/VBN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
:/:
ECI/NNP
Environmental/NNP
Inc./NNP
,/,
initial/JJ
offering/NN
of/IN
1.1/CD
million/CD
shares/NNS
,/,
of/IN
which/WDT
ECI/NNP
will/MD
sell/VB
990,000/CD
and/CC
co-founders/NNS
will/MD
sell/VB
110,000/CD
shares/NNS
,/,
via/IN
Oppenheimer/NNP
&/CC
Co/NNP
./.
Fastenal/NNP
Co./NNP
,/,
proposed/VBN
offering/NN
of/IN
400,000/CD
common/JJ
shares/NNS
by/IN
holders/NNS
,/,
via/IN
Robert/NNP
W./NNP
Baird/NNP
&/CC
Co./NNP
and/CC
William/NNP
Blair/NNP
&/CC
Co/NNP
./.
First/NNP
Capital/NNP
Holdings/NNP
Corp./NNP
,/,
proposed/VBN
offering/NN
of/IN
$/$
275/CD
million/CD
of/IN
floating/VBG
rate/NN
senior/JJ
notes/NNS
,/,
via/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc/NNP
./.
Industrial/NNP
Funding/NNP
Corp./NNP
,/,
initial/JJ
offering/NN
of/IN
common/JJ
stock/NN
,/,
via/IN
Alex/NNP
./.
Brown/NNP
&/CC
Sons/NNPS
Inc./NNP
and/CC
Piper/NNP
Jaffray/NNP
&/CC
Hopwood/NNP
./.
Parametric/NNP
Technology/NNP
Corp./NNP
,/,
initial/JJ
offering/NN
of/IN
1.7/CD
million/CD
common/JJ
shares/NNS
,/,
of/IN
which/WDT
1,365,226/CD
shares/NNS
will/MD
be/VB
sold/VBN
by/IN
the/DT
company/NN
and/CC
334,774/CD
shares/NNS
by/IN
holders/NNS
,/,
via/IN
Alex/NNP
Brown/NNP
&/CC
Sons/NNPS
,/,
Hambrecht/NNP
&/CC
Quist/NNP
and/CC
Wessels/NNP
,/,
Arnold/NNP
&/CC
Henderson/NNP
./.
Union/NNP
Camp/NNP
Corp./NNP
,/,
shelf/NN
offering/NN
of/IN
up/IN
to/TO
$/$
250/CD
million/CD
of/IN
debt/NN
securities/NNS
./.
Spencer/NNP
J./NNP
Volk/NNP
,/,
president/NN
and/CC
chief/NN
operating/NN
officer/NN
of/IN
this/DT
consumer/NN
and/CC
industrial/JJ
products/NNS
company/NN
,/,
was/VBD
elected/VBN
a/DT
director/NN
./.
Mr./NNP
Volk/NNP
,/,
55/CD
years/NNS
old/JJ
,/,
succeeds/VBZ
Duncan/NNP
Dwight/NNP
,/,
who/WP
retired/VBD
in/IN
September/NNP
./.
In/IN
an/DT
age/NN
of/IN
specialization/NN
,/,
the/DT
federal/JJ
judiciary/NN
is/VBZ
one/CD
of/IN
the/DT
last/JJ
bastions/NNS
of/IN
the/DT
generalist/NN
./.
A/DT
judge/NN
must/MD
jump/VB
from/IN
murder/NN
to/TO
antitrust/JJ
cases/NNS
,/,
from/IN
arson/NN
to/TO
securities/NNS
fraud/NN
,/,
without/IN
missing/VBG
a/DT
beat/NN
./.
But/CC
even/RB
on/IN
the/DT
federal/JJ
bench/NN
,/,
specialization/NN
is/VBZ
creeping/VBG
in/RP
,/,
and/CC
it/PRP
has/VBZ
become/VBN
a/DT
subject/NN
of/IN
sharp/JJ
controversy/NN
on/IN
the/DT
newest/JJS
federal/JJ
appeals/NNS
court/NN
./.
The/DT
Court/NNP
of/IN
Appeals/NNPS
for/IN
the/DT
Federal/NNP
Circuit/NNP
was/VBD
created/VBN
in/IN
1982/CD
to/TO
serve/VB
,/,
among/IN
other/JJ
things/NNS
,/,
as/IN
the/DT
court/NN
of/IN
last/JJ
resort/NN
for/IN
most/JJS
patent/NN
disputes/NNS
./.
Previously/RB
,/,
patent/NN
cases/NNS
moved/VBD
through/IN
the/DT
court/NN
system/NN
to/TO
one/CD
of/IN
the/DT
12/CD
circuit/NN
appeals/NNS
courts/NNS
./.
There/RB
,/,
judges/NNS
who/WP
saw/VBD
few/JJ
such/JJ
cases/NNS
and/CC
had/VBD
no/DT
experience/NN
in/IN
the/DT
field/NN
grappled/VBD
with/IN
some/DT
of/IN
the/DT
most/RBS
technical/JJ
and/CC
complex/JJ
disputes/NNS
imaginable/JJ
./.
A/DT
new/JJ
specialty/NN
court/NN
was/VBD
sought/VBN
by/IN
patent/NN
experts/NNS
,/,
who/WP
believed/VBD
that/IN
the/DT
generalists/NNS
had/VBD
botched/VBN
too/RB
many/RB
important/JJ
,/,
multimillion-dollar/JJ
cases/NNS
./.
Some/DT
patent/NN
lawyers/NNS
had/VBD
hoped/VBN
that/IN
such/PDT
a/DT
specialty/NN
court/NN
would/MD
be/VB
filled/VBN
with/IN
experts/NNS
in/IN
the/DT
field/NN
./.
But/CC
the/DT
Reagan/NNP
administration/NN
thought/VBD
otherwise/RB
,/,
and/CC
so/RB
may/MD
the/DT
Bush/NNP
administration/NN
./.
Since/IN
1984/CD
,/,
the/DT
president/NN
has/VBZ
filled/VBN
four/CD
vacancies/NNS
in/IN
the/DT
Federal/NNP
Circuit/NNP
court/NN
with/IN
non-patent/JJ
lawyers/NNS
./.
Now/RB
only/RB
three/CD
of/IN
the/DT
12/CD
judges/NNS
--/:
Pauline/NNP
Newman/NNP
,/,
Chief/NNP
Judge/NNP
Howard/NNP
T./NNP
Markey/NNP
,/,
68/CD
,/,
and/CC
Giles/NNP
Rich/NNP
,/,
85/CD
--/:
have/VBP
patent-law/NN
backgrounds/NNS
./.
The/DT
latter/JJ
two/CD
and/CC
Judge/NNP
Daniel/NNP
M./NNP
Friedman/NNP
,/,
73/CD
,/,
are/VBP
approaching/VBG
senior/JJ
status/NN
or/CC
retirement/NN
./.
Three/CD
seats/NNS
currently/RB
are/VBP
vacant/JJ
and/CC
three/CD
others/NNS
are/VBP
likely/JJ
to/TO
be/VB
filled/VBN
within/IN
a/DT
few/JJ
years/NNS
,/,
so/IN
patent/NN
lawyers/NNS
and/CC
research-based/JJ
industries/NNS
are/VBP
making/VBG
a/DT
new/JJ
push/NN
for/IN
specialists/NNS
to/TO
be/VB
added/VBN
to/TO
the/DT
court/NN
./.
Several/JJ
organizations/NNS
,/,
including/VBG
the/DT
Industrial/NNP
Biotechnical/NNP
Association/NNP
and/CC
the/DT
Pharmaceutical/NNP
Manufacturers/NNP
Association/NNP
,/,
have/VB
asked/VBN
the/DT
White/NNP
House/NNP
and/CC
Justice/NNP
Department/NNP
to/TO
name/VB
candidates/NNS
with/IN
both/DT
patent/NN
and/CC
scientific/JJ
backgrounds/NNS
./.
The/DT
associations/NNS
would/MD
like/VB
the/DT
court/NN
to/TO
include/VB
between/IN
three/CD
and/CC
six/CD
judges/NNS
with/IN
specialized/JJ
training/NN
./.
Some/DT
of/IN
the/DT
associations/NNS
have/VB
recommended/VBN
Dr./NNP
Alan/NNP
D./NNP
Lourie/NNP
,/,
54/CD
,/,
a/DT
former/JJ
patent/NN
agent/NN
with/IN
a/DT
doctorate/NN
in/IN
organic/JJ
chemistry/NN
who/WP
now/RB
is/VBZ
associate/JJ
general/JJ
counsel/NN
with/IN
SmithKline/NNP
Beckman/NNP
Corp./NNP
in/IN
Philadelphia/NNP
./.
Dr./NNP
Lourie/NNP
says/VBZ
the/DT
Justice/NNP
Department/NNP
interviewed/VBD
him/PRP
last/JJ
July/NNP
./.
Their/PRP$
effort/NN
has/VBZ
received/VBN
a/DT
lukewarm/JJ
response/NN
from/IN
the/DT
Justice/NNP
Department/NNP
./.
``/``
We/PRP
do/VBP
not/RB
feel/VB
that/IN
seats/NNS
are/VBP
reserved/VBN
(/(
for/IN
patent/NN
lawyers/NNS
Justice/NNP
spokesman/NN
David/NNP
Runkel/NNP
,/,
who/WP
declines/VBZ
to/TO
say/VB
how/WRB
soon/RB
a/DT
candidate/NN
will/MD
be/VB
named/VBN
./.
``/``
But/CC
we/PRP
will/MD
take/VB
it/PRP
into/IN
consideration/NN
./.
''/''
The/DT
Justice/NNP
Department/NNP
's/POS
view/NN
is/VBZ
shared/VBN
by/IN
other/JJ
lawyers/NNS
and/CC
at/IN
least/JJS
one/CD
member/NN
of/IN
the/DT
court/NN
,/,
Judge/NNP
H./NNP
Robert/NNP
Mayer/NNP
,/,
a/DT
former/JJ
civil/JJ
litigator/NN
who/WP
served/VBD
at/IN
the/DT
claims/NNS
court/NN
trial/NN
level/NN
before/IN
he/PRP
was/VBD
appointed/VBN
to/TO
the/DT
Federal/NNP
Circuit/NNP
two/CD
years/NNS
ago/RB
./.
``/``
I/PRP
believe/VBP
that/IN
any/DT
good/JJ
lawyer/NN
should/MD
be/VB
able/JJ
to/TO
figure/VB
out/RP
and/CC
understand/VB
patent/NN
law/NN
,/,
''/''
Judge/NNP
Mayer/NNP
says/VBZ
,/,
adding/VBG
that/IN
``/``
it/PRP
's/VBZ
the/DT
responsibility/NN
of/IN
highly/RB
paid/VBN
lawyers/NNS
who/WP
argue/VBP
before/IN
the/DT
court/NN
us/PRP
understand/VB
(/(
complex/JJ
patent/NN
litigation/NN
''/''
Yet/CC
some/DT
lawyers/NNS
point/VBP
to/TO
Eli/NNP
Lilly/NNP
&/CC
Co./NNP
vs./NN
Medtronic/NNP
,/,
Inc./NNP
,/,
the/DT
patent/NN
infringement/NN
case/NN
the/DT
Supreme/NNP
Court/NNP
this/DT
month/NN
agreed/VBD
to/TO
review/VB
,/,
as/IN
an/DT
example/NN
of/IN
poor/JJ
legal/JJ
reasoning/NN
by/IN
judges/NNS
who/WP
lack/VBP
patent/JJ
litigation/NN
experience/NN
./.
Judge/NNP
Mayer/NNP
was/VBD
not/RB
on/IN
the/DT
three-member/JJ
panel/NN
./.
In/IN
the/DT
Lilly/NNP
case/NN
,/,
the/DT
appeals/NNS
court/NN
broadly/RB
construed/VBD
a/DT
federal/JJ
statute/NN
to/TO
grant/VB
Medtronic/NNP
,/,
a/DT
medical/JJ
device/NN
manufacturer/NN
,/,
an/DT
exemption/NN
to/TO
infringe/VB
a/DT
patent/NN
under/IN
certain/JJ
circumstances/NNS
./.
If/IN
the/DT
Supreme/NNP
Court/NNP
holds/VBZ
in/IN
Medtronic/NNP
's/POS
favor/NN
,/,
the/DT
decision/NN
will/MD
have/VB
billion-dollar/JJ
consequences/NNS
for/IN
the/DT
manufacturers/NNS
of/IN
medical/JJ
devices/NNS
,/,
color/NN
and/CC
food/NN
additives/NNS
and/CC
all/DT
other/JJ
non-drug/JJ
products/NNS
that/WDT
required/VBD
Food/NNP
&/CC
Drug/NNP
Administration/NNP
approval/NN
./.
Lisa/NNP
Raines/NNP
,/,
a/DT
lawyer/NN
and/CC
director/NN
of/IN
government/NN
relations/NNS
for/IN
the/DT
Industrial/NNP
Biotechnical/NNP
Association/NNP
,/,
contends/VBZ
that/IN
a/DT
judge/NN
well-versed/JJ
in/IN
patent/NN
law/NN
and/CC
the/DT
concerns/NNS
of/IN
research-based/JJ
industries/NNS
would/MD
have/VB
ruled/VBN
otherwise/RB
./.
And/CC
Judge/NNP
Newman/NNP
,/,
a/DT
former/JJ
patent/NN
lawyer/NN
,/,
wrote/VBD
in/IN
her/PRP$
dissent/NN
when/WRB
the/DT
court/NN
denied/VBD
a/DT
motion/NN
for/IN
a/DT
rehearing/NN
of/IN
the/DT
case/NN
by/IN
the/DT
full/JJ
court/NN
,/,
``/``
The/DT
panel/NN
's/POS
judicial/JJ
legislation/NN
has/VBZ
affected/VBN
an/DT
important/JJ
high-technological/JJ
industry/NN
,/,
without/IN
regard/NN
to/TO
the/DT
consequences/NNS
for/IN
research/NN
and/CC
innovation/NN
or/CC
the/DT
public/JJ
interest/NN
./.
''/''
Says/VBZ
Ms./NNP
Raines/NNP
,/,
``/``
(/(
The/DT
judgment/NN
our/PRP$
concern/NN
that/IN
the/DT
absence/NN
of/IN
patent/NN
lawyers/NNS
on/IN
the/DT
court/NN
could/MD
prove/VB
troublesome/JJ
./.
''/''
Friday/NNP
,/,
October/NNP
27/CD
,/,
1989/CD
The/DT
key/JJ
U.S./NNP
and/CC
foreign/JJ
annual/JJ
interest/NN
rates/NNS
below/RB
are/VBP
a/DT
guide/NN
to/TO
general/JJ
levels/NNS
but/CC
do/VBP
n't/RB
always/RB
represent/VB
actual/JJ
transactions/NNS
./.
PRIME/JJ
RATE/NN
:/:
10/CD
1\/2/CD
%/NN
./.
The/DT
base/JJ
rate/NN
on/IN
corporate/JJ
loans/NNS
at/IN
large/JJ
U.S./NNP
money/NN
center/NN
commercial/JJ
banks/NNS
./.
FEDERAL/JJ
FUNDS/NNS
:/:
8/CD
3\/4/CD
%/NN
high/JJ
,/,
8/CD
11\/16/CD
%/NN
low/JJ
,/,
8/CD
5\/8/CD
%/NN
near/IN
closing/VBG
bid/NN
,/,
8/CD
11\/16/CD
%/NN
offered/VBN
./.
Reserves/NNS
traded/VBN
among/IN
commercial/JJ
banks/NNS
for/IN
overnight/JJ
use/NN
in/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
or/CC
more/JJR
./.
Source/NN
:/:
Fulton/NNP
Prebon/NNP
U.S.A/NNP
./.
Inc/NNP
./.
DISCOUNT/NN
RATE/NN
:/:
7/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
depository/NN
institutions/NNS
by/IN
the/DT
New/NNP
York/NNP
Federal/NNP
Reserve/NNP
Bank/NNP
./.

CALL/NN
MONEY/NN
:/:
9/CD
3\/4/CD
%/NN
to/TO
10/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
brokers/NNS
on/IN
stock/NN
exchange/NN
collateral/NN
./.
COMMERCIAL/JJ
PAPER/NN
placed/VBN
directly/RB
by/IN
General/NNP
Motors/NNP
Acceptance/NNP
Corp./NNP
:/:
8.50/CD
%/NN
30/CD
to/TO
44/CD
days/NNS
;/:
8.25/CD
%/NN
45/CD
to/TO
65/CD
days/NNS
;/:
8.375/CD
%/NN
66/CD
to/TO
89/CD
days/NNS
;/:
8/CD
%/NN
90/CD
to/TO
119/CD
days/NNS
;/:
7.875/CD
%/NN
120/CD
to/TO
149/CD
days/NNS
;/:
7.75/CD
%/NN
150/CD
to/TO
179/CD
days/NNS
;/:
7.50/CD
%/NN
180/CD
to/TO
270/CD
days/NNS
./.
COMMERCIAL/JJ
PAPER/NN
:/:
High-grade/JJ
unsecured/JJ
notes/NNS
sold/VBN
through/IN
dealers/NNS
by/IN
major/JJ
corporations/NNS
in/IN
multiples/NNS
of/IN
$/$
1,000/CD
:/:
8.575/CD
%/NN
30/CD
days/NNS
;/:
8.475/CD
%/NN
60/CD
days/NNS
;/:
8.40/CD
%/NN
90/CD
days/NNS
./.
CERTIFICATES/NNS
OF/IN
DEPOSIT/NN
:/:
8.09/CD
%/NN
one/CD
month/NN
;/:
8.04/CD
%/NN
two/CD
months/NNS
;/:
8.03/CD
%/NN
three/CD
months/NNS
;/:
7.96/CD
%/NN
six/CD
months/NNS
;/:
7.92/CD
%/NN
one/CD
year/NN
./.
Average/NN
of/IN
top/JJ
rates/NNS
paid/VBN
by/IN
major/JJ
New/NNP
York/NNP
banks/NNS
on/IN
primary/JJ
new/JJ
issues/NNS
of/IN
negotiable/JJ
C.D.s/NNS
,/,
usually/RB
on/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
and/CC
more/JJR
./.
The/DT
minimum/JJ
unit/NN
is/VBZ
$/$
100,000/CD
./.
Typical/JJ
rates/NNS
in/IN
the/DT
secondary/JJ
market/NN
:/:
8.55/CD
%/NN
one/CD
month/NN
;/:
8.50/CD
%/NN
three/CD
months/NNS
;/:
8.40/CD
%/NN
six/CD
months/NNS
./.
BANKERS/NNS
ACCEPTANCES/NNS
:/:
8.52/CD
%/NN
30/CD
days/NNS
;/:
8.35/CD
%/NN
60/CD
days/NNS
;/:
8.33/CD
%/NN
90/CD
days/NNS
;/:
8.17/CD
%/NN
120/CD
days/NNS
;/:
8.08/CD
%/NN
150/CD
days/NNS
;/:
8/CD
%/NN
180/CD
days/NNS
./.
Negotiable/JJ
,/,
bank-backed/JJ
business/NN
credit/NN
instruments/NNS
typically/RB
financing/VBG
an/DT
import/NN
order/NN
./.
LONDON/NNP
LATE/JJ
EURODOLLARS/NNS
:/:
8/CD
11\/16/CD
%/NN
to/TO
8/CD
9\/16/CD
%/NN
one/CD
month/NN
;/:
8/CD
5\/8/CD
%/NN
to/TO
8/CD
1\/2/CD
%/NN
two/CD
months/NNS
;/:
8/CD
11\/16/CD
%/NN
to/TO
8/CD
9\/16/CD
%/NN
three/CD
months/NNS
;/:
8/CD
9\/16/CD
%/NN
to/TO
8/CD
7\/16/CD
%/NN
four/CD
months/NNS
;/:
8/CD
1\/2/CD
%/NN
to/TO
8/CD
3\/8/CD
%/NN
five/CD
months/NNS
;/:
8/CD
7\/16/CD
%/NN
to/TO
8/CD
5\/16/CD
%/NN
six/CD
months/NNS
./.
LONDON/NNP
INTERBANK/JJ
OFFERED/VBN
RATES/NNS
LIBOR/NNP
8/CD
11\/16/CD
%/NN
one/CD
month/NN
;/:
8/CD
11\/16/CD
%/NN
three/CD
months/NNS
;/:
8/CD
7\/16/CD
%/NN
six/CD
months/NNS
;/:
8/CD
3\/8/CD
%/NN
one/CD
year/NN
./.
The/DT
average/NN
of/IN
interbank/JJ
offered/VBN
rates/NNS
for/IN
dollar/NN
deposits/NNS
in/IN
the/DT
London/NNP
market/NN
based/VBN
on/IN
quotations/NNS
at/IN
five/CD
major/JJ
banks/NNS
./.
FOREIGN/JJ
PRIME/JJ
RATES/NNS
:/:
Canada/NNP
13.50/CD
%/NN
;/:
Germany/NNP
9/CD
%/NN
;/:
Japan/NNP
4.875/CD
%/NN
;/:
Switzerland/NNP
8.50/CD
%/NN
;/:
Britain/NNP
15/CD
%/NN
./.
These/DT
rate/NN
indications/NNS
are/VBP
n't/RB
directly/RB
comparable/JJ
;/:
lending/NN
practices/NNS
vary/VBP
widely/RB
by/IN
location/NN
./.
TREASURY/NNP
BILLS/NNS
:/:
Results/NNS
of/IN
the/DT
Monday/NNP
,/,
October/NNP
23/CD
,/,
1989/CD
,/,
auction/NN
of/IN
short-term/JJ
U.S./NNP
government/NN
bills/NNS
,/,
sold/VBN
at/IN
a/DT
discount/NN
from/IN
face/NN
value/NN
in/IN
units/NNS
of/IN
$/$
10,000/CD
to/TO
$/$
1/CD
million/CD
:/:
7.52/CD
%/NN
13/CD
weeks/NNS
;/:
7.50/CD
%/NN
26/CD
weeks/NNS
./.
FEDERAL/NNP
HOME/NNP
LOAN/NNP
MORTGAGE/NNP
CORP/NNP
./.
Freddie/NNP
Mac/NNP
yields/NNS
on/IN
30-year/JJ
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NN
./.
9.80/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
7.875/CD
%/NN
,/,
2/CD
%/NN
rate/NN
capped/VBN
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNPS
Inc/NNP
./.
FEDERAL/NNP
NATIONAL/NNP
MORTGAGE/NNP
ASSOCIATION/NNP
Fannie/NNP
Mae/NNP
yields/NNS
on/IN
30/CD
year/NN
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
par/NN
9.75/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
8.70/CD
%/NN
,/,
6\/2/CD
rate/NN
capped/VBN
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNPS
Inc/NNP
./.
MERRILL/NNP
LYNCH/NNP
READY/NNP
ASSETS/NNPS
TRUST/NNP
:/:
8.65/CD
%/NN
./.
Annualized/VBN
average/JJ
rate/NN
of/IN
return/NN
after/IN
expenses/NNS
for/IN
the/DT
past/JJ
30/CD
days/NNS
;/:
not/RB
a/DT
forecast/NN
of/IN
future/JJ
returns/NNS
./.
THE/DT
FINANCIAL/NNP
ACCOUNTING/NNP
STANDARDS/NNPS
BOARD'S/NNP
coming/JJ
rule/NN
on/IN
disclosure/NN
involving/VBG
financial/JJ
instruments/NNS
will/MD
be/VB
effective/JJ
for/IN
financial/JJ
statements/NNS
with/IN
fiscal/JJ
years/NNS
ending/VBG
after/IN
June/NNP
15/CD
,/,
1990/CD
./.
The/DT
date/NN
was/VBD
misstated/VBN
in/IN
Friday/NNP
's/POS
edition/NN
./.
FASB/NNP
Plans/VBZ
Rule/NN
on/IN
Financial/JJ
Risk/NN
of/IN
Instruments/NNS
''/''
--/:
WSJ/NNP
Oct./NNP
27/CD
,/,
1989/CD
)/)
Kidder/NNP
,/,
Peabody/NNP
&/CC
Co./NNP
is/VBZ
trying/VBG
to/TO
struggle/VB
back/RP
./.
Only/RB
a/DT
few/JJ
months/NNS
ago/RB
,/,
the/DT
124-year-old/JJ
securities/NNS
firm/NN
seemed/VBD
to/TO
be/VB
on/IN
the/DT
verge/NN
of/IN
a/DT
meltdown/NN
,/,
racked/VBN
by/IN
internal/JJ
squabbles/NNS
and/CC
defections/NNS
./.
Its/PRP$
relationship/NN
with/IN
parent/NN
General/NNP
Electric/NNP
Co./NNP
had/VBD
been/VBN
frayed/VBN
since/IN
a/DT
big/JJ
Kidder/NNP
insider-trading/NN
scandal/NN
two/CD
years/NNS
ago/RB
./.
Chief/JJ
executives/NNS
and/CC
presidents/NNS
had/VBD
come/VBN
and/CC
gone/VBN
./.
Now/RB
,/,
the/DT
firm/NN
says/VBZ
it/PRP
's/VBZ
at/IN
a/DT
turning/NN
point/NN
./.
By/IN
the/DT
end/NN
of/IN
this/DT
year/NN
,/,
63-year-old/JJ
Chairman/NNP
Silas/NNP
Cathcart/NNP
--/:
the/DT
former/JJ
chairman/NN
of/IN
Illinois/NNP
Tool/NNP
Works/NNP
who/WP
was/VBD
derided/VBN
as/IN
a/DT
``/``
tool-and-die/JJ
man/NN
''/''
when/WRB
GE/NNP
brought/VBD
him/PRP
in/IN
to/TO
clean/VB
up/RP
Kidder/NNP
in/IN
1987/CD
--/:
retires/VBZ
to/TO
his/PRP$
Lake/NNP
Forest/NNP
,/,
Ill./NNP
,/,
home/NN
,/,
possibly/RB
to/TO
build/VB
a/DT
shopping/NN
mall/NN
on/IN
some/DT
land/NN
he/PRP
owns/VBZ
./.
``/``
I/PRP
've/VBP
done/VBN
what/WP
I/PRP
came/VBD
to/TO
do/VB
''/''
at/IN
Kidder/NNP
,/,
he/PRP
says/VBZ
./.
And/CC
that/DT
means/VBZ
42-year-old/JJ
Michael/NNP
Carpenter/NNP
,/,
president/NN
and/CC
chief/JJ
executive/NN
since/IN
January/NNP
,/,
will/NN
for/IN
the/DT
first/JJ
time/NN
take/VB
complete/JJ
control/NN
of/IN
Kidder/NNP
and/CC
try/VB
to/TO
make/VB
good/JJ
on/IN
some/DT
grandiose/JJ
plans/NNS
./.
Mr./NNP
Carpenter/NNP
says/VBZ
he/PRP
will/MD
return/VB
Kidder/NNP
to/TO
prominence/NN
as/IN
a/DT
great/JJ
investment/NN
bank/NN
./.
Wall/NNP
Street/NNP
is/VBZ
understandably/RB
skeptical/JJ
./.
Through/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
the/DT
year/NN
,/,
Kidder/NNP
ranks/VBZ
a/DT
distant/JJ
10th/JJ
among/IN
underwriters/NNS
of/IN
U.S./NNP
stocks/NNS
and/CC
bonds/NNS
,/,
with/IN
a/DT
2.8/CD
%/NN
market/NN
share/NN
,/,
up/IN
slightly/RB
from/IN
2.5/CD
%/NN
in/IN
the/DT
year-earlier/JJ
period/NN
,/,
according/VBG
to/TO
Securities/NNPS
Data/NNPS
Co/NNP
./.
It/PRP
's/VBZ
quite/PDT
a/DT
fall/NN
from/IN
the/DT
early/JJ
1980s/NNS
,/,
when/WRB
Kidder/NNP
still/RB
was/VBD
counted/VBN
as/IN
an/DT
investment-banking/NN
powerhouse/NN
./.
Gary/NNP
S./NNP
Goldstein/NNP
,/,
president/NN
of/IN
the/DT
Whitney/NNP
Group/NNP
,/,
an/DT
executive/JJ
search/NN
firm/NN
,/,
said/VBD
:/:
``/``
I/PRP
'd/MD
like/VB
to/TO
see/VB
(/(
Kidder/NNP
But/CC
they/PRP
have/VBP
to/TO
attract/VB
good/JJ
senior/JJ
bankers/NNS
who/WP
can/MD
bring/VB
in/RP
the/DT
business/NN
from/IN
day/NN
one/CD
./.
''/''
In/IN
1988/CD
,/,
Kidder/NNP
eked/VBD
out/RP
a/DT
$/$
46/CD
million/CD
profit/NN
,/,
mainly/RB
because/IN
of/IN
severe/JJ
cost/NN
cutting/NN
./.
Its/PRP$
1,400-member/JJ
brokerage/NN
operation/NN
reported/VBD
an/DT
estimated/JJ
$/$
5/CD
million/CD
loss/NN
last/JJ
year/NN
,/,
although/IN
Kidder/NNP
expects/VBZ
it/PRP
to/TO
turn/VB
a/DT
profit/NN
this/DT
year/NN
./.
In/IN
fact/NN
,/,
Kidder/NNP
is/VBZ
a/DT
minor/JJ
player/NN
in/IN
just/RB
about/RB
every/DT
business/NN
it/PRP
does/VBZ
except/IN
computer-driven/JJ
program/NN
trading/NN
;/:
in/IN
that/DT
controversial/JJ
business/NN
,/,
only/RB
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
rivals/VBZ
Kidder/NNP
./.
But/CC
even/RB
that/DT
niche/NN
is/VBZ
under/IN
attack/NN
,/,
as/IN
several/JJ
Wall/NNP
Street/NNP
firms/NNS
pulled/VBD
back/RP
from/IN
program/NN
trading/NN
last/JJ
week/NN
under/IN
pressure/NN
from/IN
big/JJ
investors/NNS
./.
Mr./NNP
Carpenter/NNP
,/,
a/DT
former/JJ
consulting-firm/NN
executive/NN
who/WP
has/VBZ
a/DT
love/NN
for/IN
``/``
task/NN
forces/NNS
,/,
''/''
says/VBZ
he/PRP
has/VBZ
done/VBN
a/DT
``/``
complete/JJ
rethink/NN
''/''
of/IN
Kidder/NNP
in/IN
recent/JJ
months/NNS
./.
There/EX
have/VBP
been/VBN
a/DT
dizzying/JJ
parade/NN
of/IN
studies/NNS
of/IN
the/DT
firm/NN
's/POS
operations/NNS
./.
More/JJR
than/IN
20/CD
new/JJ
managing/VBG
directors/NNS
and/CC
senior/JJ
vice/NN
presidents/NNS
have/VBP
been/VBN
hired/VBN
since/IN
January/NNP
./.
The/DT
firm/NN
's/POS
brokerage/NN
force/NN
has/VBZ
been/VBN
trimmed/VBN
and/CC
its/PRP$
mergers-and-acquisitions/JJ
staff/NN
increased/VBN
to/TO
a/DT
record/JJ
55/CD
people/NNS
./.
Mr./NNP
Carpenter/NNP
says/VBZ
that/IN
when/WRB
he/PRP
assumes/VBZ
full/JJ
control/NN
,/,
Kidder/NNP
will/MD
finally/RB
tap/VB
the/DT
resources/NNS
of/IN
GE/NNP
./.
One/CD
of/IN
GE/NNP
's/POS
goals/NNS
when/WRB
it/PRP
bought/VBD
80/CD
%/NN
of/IN
Kidder/NNP
in/IN
1986/CD
was/VBD
to/TO
take/VB
advantage/NN
of/IN
``/``
syngeries/NNS
''/''
between/IN
Kidder/NNP
and/CC
General/NNP
Electric/NNP
Capital/NNP
Corp./NNP
,/,
GE/NNP
's/POS
corporate-finance/JJ
unit/NN
,/,
which/WDT
has/VBZ
$/$
42/CD
billion/CD
in/IN
assets/NNS
./.
The/DT
leveraged/JJ
buy-out/JJ
group/NN
of/IN
GE/NNP
Capital/NNP
now/RB
reports/VBZ
to/TO
Mr./NNP
Carpenter/NNP
./.
So/RB
far/RB
,/,
instead/RB
of/IN
teaming/VBG
up/RP
,/,
GE/NNP
Capital/NNP
staffers/NNS
and/CC
Kidder/NNP
investment/NN
bankers/NNS
have/VBP
bickered/VBN
./.
Yet/RB
,/,
says/VBZ
Mr./NNP
Carpenter/NNP
,/,
``/``
We/PRP
've/VB
really/RB
started/VBN
to/TO
exploit/VB
the/DT
synergy/NN
between/IN
GE/NNP
Capital/NNP
and/CC
Kidder/NNP
Peabody/NNP
./.
''/''
The/DT
units/NNS
have/VBP
worked/VBN
on/IN
37/CD
investment/NN
banking/NN
deals/NNS
this/DT
year/NN
,/,
he/PRP
says/VBZ
,/,
though/IN
not/RB
all/DT
of/IN
them/PRP
have/VBP
panned/VBN
out/RP
./.
``/``
We/PRP
've/VBP
had/VBD
a/DT
good/JJ
relationship/NN
with/IN
GE/NNP
,/,
which/WDT
is/VBZ
the/DT
first/JJ
time/NN
you/PRP
could/MD
say/VB
that/DT
--/:
uh/UH
,/,
let/VB
me/PRP
withdraw/VB
that/DT
./.
It/PRP
's/VBZ
been/VBN
a/DT
steadily/RB
improving/VBG
relationship/NN
,/,
''/''
says/VBZ
Mr./NNP
Carpenter/NNP
./.
Still/RB
,/,
without/IN
many/JJ
actual/JJ
deals/NNS
to/TO
show/VB
off/RP
,/,
Kidder/NNP
is/VBZ
left/VBN
to/TO
stress/VB
that/IN
it/PRP
finally/RB
has/VBZ
``/``
a/DT
team/NN
''/''
in/IN
place/NN
,/,
and/CC
that/IN
everyone/NN
works/VBZ
harder/RBR
./.
A/DT
month/NN
ago/RB
,/,
the/DT
firm/NN
started/VBD
serving/VBG
dinner/NN
at/IN
about/RB
7:30/CD
each/DT
night/NN
;/:
about/RB
50/CD
to/TO
60/CD
of/IN
the/DT
350/CD
people/NNS
in/IN
the/DT
investment/NN
banking/NN
operation/NN
have/VBP
consistently/RB
been/VBN
around/RB
that/DT
late/RB
./.
``/``
We/PRP
are/VBP
working/VBG
significantly/RB
longer/RBR
and/CC
harder/RBR
than/IN
has/VBZ
been/VBN
the/DT
case/NN
in/IN
the/DT
past/NN
,/,
''/''
says/VBZ
Scott/NNP
C./NNP
Newquist/NNP
,/,
Kidder/NNP
's/POS
head/NN
of/IN
investment/NN
banking/NN
since/IN
June/NNP
./.
Everywhere/RB
,/,
Kidder/NNP
stresses/VBZ
the/DT
``/``
always/RB
working/VBG
''/''
theme/NN
./.
A/DT
new/JJ
in-house/JJ
magazine/NN
,/,
Kidder/NNP
World/NNP
--/:
which/WDT
will/MD
focus/VB
on/IN
the/DT
firm/NN
's/POS
synergy/NN
strategy/NN
,/,
says/VBZ
Mr./NNP
Carpenter/NNP
--/:
confides/VBZ
that/IN
on/IN
weekends/NNS
Mr./NNP
Newquist/NNP
``/``
often/RB
gets/VBZ
value-added/JJ
ideas/NNS
while/IN
flying/VBG
his/PRP$
single-engine/JJ
Cessna/NNP
Centurion/NNP
on/IN
the/DT
way/NN
to/TO
Nantucket/NNP
./.
''/''
The/DT
firm/NN
's/POS
new/JJ
head/NN
of/IN
mergers/NNS
and/CC
acquisitions/NNS
under/IN
Mr./NNP
Newquist/NNP
,/,
B.J./NNP
Megargel/NNP
,/,
talks/VBZ
of/IN
the/DT
opportunity/NN
to/TO
``/``
rebuild/VB
a/DT
franchise/NN
''/''
at/IN
Kidder/NNP
./.
``/``
The/DT
Kidder/NNP
name/NN
is/VBZ
one/CD
of/IN
only/RB
six/CD
or/CC
seven/CD
that/WDT
every/DT
CEO/NN
recognizes/VBZ
as/IN
a/DT
viable/JJ
alternative/NN
''/''
when/WRB
considering/VBG
a/DT
merger/NN
deal/NN
,/,
he/PRP
says/VBZ
./.
Now/RB
,/,
according/VBG
to/TO
a/DT
Kidder/NNP
World/NNP
story/NN
about/IN
Mr./NNP
Megargel/NNP
,/,
all/DT
the/DT
firm/NN
has/VBZ
to/TO
do/VB
is/VBZ
``/``
position/VB
ourselves/PRP
more/RBR
in/IN
the/DT
deal/NN
flow/NN
./.
''/''
With/IN
investment/NN
banking/NN
as/IN
Kidder/NNP
's/POS
``/``
lead/NN
business/NN
,/,
''/''
where/WRB
do/VB
Kidder/NNP
's/POS
42-branch/JJ
brokerage/NN
network/NN
and/CC
its/PRP$
1,400/CD
brokers/NNS
fit/VBN
in/RP
?/.
Mr./NNP
Carpenter/NNP
this/DT
month/NN
sold/VBD
off/RP
Kidder/NNP
's/POS
eight/CD
brokerage/NN
offices/NNS
in/IN
Florida/NNP
and/CC
Puerto/NNP
Rico/NNP
to/TO
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
,/,
refueling/VBG
speculation/NN
that/IN
Kidder/NNP
is/VBZ
getting/VBG
out/IN
of/IN
the/DT
brokerage/NN
business/NN
entirely/RB
./.
Mr./NNP
Carpenter/NNP
denies/VBZ
the/DT
speculation/NN
./.
To/TO
answer/VB
the/DT
brokerage/NN
question/NN
,/,
Kidder/NNP
,/,
in/IN
typical/JJ
fashion/NN
,/,
completed/VBD
a/DT
task-force/NN
study/NN
./.
The/DT
result/NN
:/:
Kidder/NNP
will/MD
focus/VB
on/IN
rich/JJ
individual/JJ
investors/NNS
and/CC
small/JJ
companies/NNS
,/,
much/RB
closer/RBR
to/TO
the/DT
clientele/NNS
of/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
than/IN
a/DT
serve-the-world/JJ
firm/NN
like/IN
Merrill/NNP
Lynch/NNP
or/CC
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc/NNP
./.
Mr./NNP
Carpenter/NNP
notes/NNS
that/IN
these/DT
types/NNS
of/IN
investors/NNS
also/RB
are/VBP
``/``
sophisticated/JJ
''/''
enough/RB
not/RB
to/TO
complain/VB
about/IN
Kidder/NNP
's/POS
aggressive/JJ
use/NN
of/IN
program/NN
trading/NN
./.
As/IN
part/NN
of/IN
the/DT
upscale/JJ
push/NN
,/,
Kidder/NNP
is/VBZ
putting/VBG
brokers/NNS
through/IN
a/DT
20-week/JJ
training/NN
course/NN
,/,
turning/VBG
them/PRP
into/IN
``/``
investment/NN
counselors/NNS
''/''
with/IN
knowledge/NN
of/IN
corporate/JJ
finance/NN
./.
They/PRP
will/MD
get/VB
``/``
new/JJ
and/CC
improved/JJ
tools/NNS
to/TO
sell/VB
,/,
particularly/RB
to/TO
the/DT
affluent/JJ
investor/NN
,/,
''/''
says/VBZ
brokerage/NN
chief/NN
Charles/NNP
V./NNP
Sheehan/NNP
./.
Theoretically/RB
,/,
the/DT
brokers/NNS
will/MD
then/RB
be/VB
able/JJ
to/TO
funnel/VB
``/``
leads/NNS
''/''
on/IN
corporate/JJ
finance/NN
opportunities/NNS
to/TO
Kidder/NNP
's/POS
investment/NN
bankers/NNS
,/,
possibly/RB
easing/VBG
the/DT
longstanding/JJ
tension/NN
between/IN
the/DT
two/CD
camps/NNS
./.
However/RB
,/,
skeptics/NNS
caution/VBP
that/IN
this/DT
kind/NN
of/IN
cross-pollination/NN
between/IN
brokers/NNS
and/CC
investment/NN
bankers/NNS
looks/VBZ
great/JJ
on/IN
paper/NN
,/,
but/CC
does/VBZ
n't/RB
always/RB
happen/VB
./.
Kidder/NNP
competitors/NNS
are/VBP
n't/RB
outwardly/RB
hostile/JJ
to/TO
the/DT
firm/NN
,/,
as/IN
many/JJ
are/VBP
to/TO
a/DT
tough/JJ
competitor/NN
like/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
that/WDT
does/VBZ
n't/RB
have/VB
Kidder/NNP
's/POS
long/JJ
history/NN
./.
However/RB
,/,
competitors/NNS
say/VBP
that/IN
Kidder/NNP
's/POS
hiring/NN
binge/NN
involving/VBG
executive-level/JJ
staffers/NNS
,/,
some/DT
with/IN
multiple-year/JJ
contract/NN
guarantees/NNS
,/,
could/MD
backfire/VB
unless/IN
there/EX
are/VBP
results/NNS
./.
The/DT
departing/VBG
Mr./NNP
Cathcart/NNP
says/VBZ
he/PRP
has/VBZ
no/DT
worries/NNS
about/IN
Kidder/NNP
's/POS
future/NN
./.
Mr./NNP
Cathcart/NNP
,/,
who/WP
will/MD
return/VB
to/TO
the/DT
Quaker/NNP
Oats/NNP
Co./NNP
board/NN
of/IN
directors/NNS
,/,
in/IN
addition/NN
to/TO
his/PRP$
personal/JJ
ventures/NNS
,/,
is/VBZ
credited/VBN
with/IN
bringing/VBG
some/DT
basic/JJ
budgeting/NN
and/CC
planning/NN
discipline/NN
to/TO
traditionally/RB
free-wheeling/JJ
Kidder/NNP
./.
He/PRP
also/RB
improved/VBD
the/DT
firm/NN
's/POS
compliance/NN
procedures/NNS
for/IN
trading/VBG
./.
Mr./NNP
Cathcart/NNP
says/VBZ
he/PRP
has/VBZ
had/VBD
``/``
a/DT
lot/NN
of/IN
fun/NN
''/''
at/IN
Kidder/NNP
,/,
adding/VBG
the/DT
crack/NN
about/IN
his/PRP$
being/VBG
a/DT
``/``
tool-and-die/JJ
man/NN
''/''
never/RB
bothered/VBD
him/PRP
./.
``/``
It/PRP
was/VBD
an/DT
absolutely/RB
marvelous/JJ
line/NN
and/CC
one/CD
I/PRP
used/VBD
many/JJ
times/NNS
,/,
''/''
he/PRP
says/VBZ
./.
Smiling/VBG
broadly/RB
when/WRB
he/PRP
talks/VBZ
about/IN
Mr./NNP
Carpenter/NNP
,/,
Mr./NNP
Cathcart/NNP
says/VBZ
the/DT
new/JJ
Kidder/NNP
chief/NN
is/VBZ
``/``
going/VBG
to/TO
be/VB
recognized/VBN
shortly/RB
as/IN
one/CD
of/IN
the/DT
real/JJ
leaders/NNS
in/IN
the/DT
investment-banking/NN
business/NN
./.
''/''
In/IN
coming/JJ
years/NNS
,/,
Mr./NNP
Cathcart/NNP
says/VBZ
,/,
Kidder/NNP
is/VBZ
``/``
gon/VBG
na/TO
hum/NN
./.
''/''
Or/CC
,/,
as/IN
Mr./NNP
Carpenter/NNP
,/,
again/RB
drawing/VBG
on/IN
his/PRP$
consulting-firm/NN
background/NN
,/,
puts/VBZ
it/PRP
:/:
``/``
We/PRP
're/VBP
ready/JJ
to/TO
implement/VB
at/IN
this/DT
point/NN
./.
''/''
UNDER/IN
A/DT
PROPOSAL/NN
by/IN
Democrats/NNPS
to/TO
expand/VB
Individual/NNP
Retirement/NNP
Accounts/NNPS
,/,
a/DT
$/$
2,000/CD
contribution/NN
by/IN
a/DT
taxpayer/NN
in/IN
the/DT
33/CD
%/NN
bracket/NN
would/MD
save/VB
$/$
330/CD
on/IN
his/PRP$
taxes/NNS
./.
The/DT
savings/NN
was/VBD
given/VBN
incorrectly/RB
in/IN
Friday/NNP
's/POS
edition/NN
./.
Politics/NNS
&/CC
Policy/NN
:/:
Debate/NN
on/IN
IRAs/NNPS
Centers/VBZ
on/IN
Whether/IN
Tax/NN
Break/NN
Should/MD
Be/VB
Immediate/JJ
or/CC
Put/VBN
Off/RP
Till/IN
Retirement/NN
''/''
--/:
WSJ/NNP
Oct./NNP
27/CD
,/,
1989/CD
)/)
In/IN
what/WP
could/MD
prove/VB
a/DT
major/JJ
addition/NN
to/TO
the/DT
Philippines/NNPS
'/POS
foreign-investment/JJ
portfolio/NN
,/,
a/DT
Taiwanese/JJ
company/NN
signed/VBD
a/DT
$/$
180/CD
million/CD
construction/NN
contract/NN
to/TO
build/VB
the/DT
centerpiece/NN
of/IN
a/DT
planned/JJ
petrochemical/NN
complex/NN
./.
Taiwan/NNP
's/POS
USI/NNP
Far/NNP
East/NNP
Corp./NNP
,/,
a/DT
petrochemical/NN
company/NN
,/,
initialed/VBD
the/DT
agreement/NN
with/IN
an/DT
unidentified/JJ
Japanese/JJ
contractor/NN
to/TO
build/VB
a/DT
naphtha/NN
cracker/NN
,/,
according/VBG
to/TO
Alson/NNP
Lee/NNP
,/,
who/WP
heads/VBZ
the/DT
Philippine/JJ
company/NN
set/VBN
up/RP
to/TO
build/VB
and/CC
operate/VB
the/DT
complex/NN
./.
Mr./NNP
Lee/NNP
,/,
president/NN
of/IN
Luzon/NNP
Petrochemical/NNP
Corp./NNP
,/,
said/VBD
the/DT
contract/NN
was/VBD
signed/VBN
Wednesday/NNP
in/IN
Tokyo/NNP
with/IN
USI/NNP
Far/NNP
East/NNP
officials/NNS
./.
Contract/NN
details/NNS
,/,
however/RB
,/,
have/VBP
n't/RB
been/VBN
made/VBN
public/JJ
./.
The/DT
complex/NN
is/VBZ
to/TO
be/VB
located/VBN
in/IN
Batangas/NNP
,/,
about/RB
70/CD
miles/NNS
south/RB
of/IN
Manila/NNP
./.
USI/NNP
Far/NNP
East/NNP
will/MD
hold/VB
a/DT
60/CD
%/NN
stake/NN
in/IN
Luzon/NNP
Petrochemical/NNP
,/,
according/VBG
to/TO
papers/NNS
signed/VBN
with/IN
the/DT
Philippine/JJ
government/NN
's/POS
Board/NNP
of/IN
Investments/NNP
./.
The/DT
proposed/JJ
petrochemical/NN
plant/NN
would/MD
use/VB
naphtha/NN
to/TO
manufacture/VB
the/DT
petrochemicals/NNS
propylene/NN
and/CC
ethylene/NN
and/CC
their/PRP$
resin/NN
derivatives/NNS
,/,
polypropylene/NN
and/CC
polyethylene/NN
./.
These/DT
are/VBP
the/DT
raw/JJ
materials/NNS
used/VBN
in/IN
making/VBG
plastics/NNS
./.
The/DT
contract/NN
signing/NN
represented/VBD
a/DT
major/JJ
step/NN
in/IN
the/DT
long-planned/JJ
petrochemical/NN
project/NN
./.
At/IN
an/DT
estimated/JJ
$/$
360/CD
million/CD
,/,
the/DT
project/NN
would/MD
represent/VB
the/DT
single/JJ
largest/JJS
foreign/JJ
investment/NN
in/IN
the/DT
Philippines/NNPS
since/IN
President/NNP
Corazon/NNP
Aquino/NNP
took/VBD
office/NN
in/IN
February/NNP
1986/CD
./.
It/PRP
also/RB
is/VBZ
considered/VBN
critical/JJ
to/TO
the/DT
country/NN
's/POS
efforts/NNS
to/TO
both/DT
attract/VB
other/JJ
investment/NN
from/IN
Taiwan/NNP
and/CC
raise/VB
heavy/JJ
industry/NN
capabilities/NNS
./.
The/DT
project/NN
has/VBZ
been/VBN
in/IN
and/CC
out/IN
of/IN
the/DT
pipeline/NN
for/IN
more/RBR
than/IN
a/DT
decade/NN
./.
However/RB
,/,
workers/NNS
ca/MD
n't/RB
break/VB
ground/NN
until/IN
legal/JJ
maneuvers/NNS
to/TO
block/VB
the/DT
complex/NN
are/VBP
resolved/VBN
,/,
moves/NNS
which/WDT
caused/VBD
the/DT
signing/NN
to/TO
remain/VB
questionable/JJ
up/IN
to/TO
the/DT
last/JJ
moment/NN
./.
As/IN
previously/RB
reported/VBN
,/,
a/DT
member/NN
of/IN
the/DT
Philippines/NNPS
'/POS
House/NNP
of/IN
Representatives/NNPS
has/VBZ
sued/VBN
to/TO
stop/VB
the/DT
plant/NN
./.
The/DT
legislator/NN
,/,
Enrique/NNP
Garcia/NNP
,/,
had/VBD
actively/RB
backed/VBN
the/DT
plant/NN
,/,
but/CC
at/IN
the/DT
original/JJ
site/NN
in/IN
his/PRP$
constituency/NN
northwest/RB
of/IN
Manila/NNP
./.
The/DT
country/NN
's/POS
Supreme/NNP
Court/NNP
dismissed/VBD
the/DT
suit/NN
,/,
but/CC
Mr./NNP
Garcia/NNP
late/RB
last/JJ
month/NN
filed/VBD
for/IN
a/DT
reconsideration/NN
./.
In/IN
addition/NN
,/,
President/NNP
Aquino/NNP
has/VBZ
yet/RB
to/TO
sign/VB
into/IN
law/NN
a/DT
bill/NN
removing/VBG
a/DT
stiff/JJ
48/CD
%/NN
tax/NN
on/IN
naphtha/NN
,/,
the/DT
principal/JJ
raw/JJ
material/NN
to/TO
be/VB
used/VBN
in/IN
the/DT
cracker/NN
./.
However/RB
,/,
at/IN
a/DT
news/NN
conference/NN
Thursday/NNP
,/,
Mrs./NNP
Aquino/NNP
backed/VBD
the/DT
project/NN
and/CC
said/VBD
her/PRP$
government/NN
was/VBD
attempting/VBG
to/TO
soothe/VB
the/DT
feelings/NNS
of/IN
residents/NNS
at/IN
the/DT
original/JJ
site/NN
,/,
adjacent/JJ
to/TO
the/DT
government/NN
's/POS
major/JJ
petroleum/NN
refinery/NN
in/IN
Bataan/NNP
province/NN
./.
``/``
We/PRP
have/VBP
tried/VBN
our/PRP$
best/JJS
to/TO
tell/VB
the/DT
people/NNS
in/IN
Bataan/NNP
that/IN
maybe/RB
this/DT
time/NN
it/PRP
will/MD
not/RB
go/VB
to/TO
them/PRP
,/,
but/CC
certainly/RB
we/PRP
will/MD
do/VB
our/PRP$
best/JJS
to/TO
encourage/VB
other/JJ
investors/NNS
to/TO
go/VB
to/TO
their/PRP$
province/NN
,/,
''/''
Mrs./NNP
Aquino/NNP
told/VBD
Manila-based/JJ
foreign/JJ
correspondents/NNS
./.
The/DT
project/NN
appeared/VBD
to/TO
be/VB
on/IN
the/DT
rocks/NNS
earlier/RBR
this/DT
month/NN
when/WRB
the/DT
other/JJ
major/JJ
partner/NN
in/IN
the/DT
project/NN
,/,
China/NNP
General/NNP
Plastics/NNPS
Corp./NNP
,/,
backed/VBD
out/RP
./.
China/NNP
General/NNP
Plastics/NNPS
,/,
another/DT
Taiwanese/JJ
petrochemical/NN
manufacturer/NN
,/,
was/VBD
to/TO
have/VB
a/DT
40/CD
%/NN
stake/NN
in/IN
Luzon/NNP
Petrochemical/NNP
./.
However/RB
,/,
Mr./NNP
Lee/NNP
said/VBD
that/IN
USI/NNP
Far/NNP
East/NNP
is/VBZ
confident/JJ
other/JJ
investors/NNS
will/MD
take/VB
up/RP
the/DT
slack/NN
./.
He/PRP
said/VBD
USI/NNP
Far/NNP
East/NNP
has/VBZ
applied/VBN
to/TO
both/CC
the/DT
Asian/NNP
Development/NNP
Bank/NNP
and/CC
the/DT
World/NNP
Bank/NNP
's/POS
International/NNP
Finance/NNP
Corp./NNP
for/IN
financing/NN
that/WDT
could/MD
include/VB
equity/NN
stakes/NNS
./.
Three/CD
new/JJ
issues/NNS
begin/VBP
trading/VBG
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
today/NN
,/,
and/CC
one/CD
began/VBD
trading/VBG
on/IN
the/DT
Nasdaq\/National/NNP
Market/NNP
System/NNP
last/JJ
week/NN
./.
On/IN
the/DT
Big/NNP
Board/NNP
,/,
Crawford/NNP
&/CC
Co./NNP
,/,
Atlanta/NNP
,/,
(/(
CFD/NNP
trading/VBG
today/NN
./.
Crawford/NNP
evaluates/VBZ
health/NN
care/NN
plans/NNS
,/,
manages/VBZ
medical/JJ
and/CC
disability/NN
aspects/NNS
of/IN
worker/NN
's/POS
compensation/NN
injuries/NNS
and/CC
is/VBZ
involved/VBN
in/IN
claims/NNS
adjustments/NNS
for/IN
insurance/NN
companies/NNS
./.
Also/RB
beginning/VBG
trading/VBG
today/NN
on/IN
the/DT
Big/NNP
Board/NNP
are/VBP
El/NNP
Paso/NNP
Refinery/NNP
Limited/NNP
Partnership/NNP
,/,
El/NNP
Paso/NNP
,/,
Texas/NNP
,/,
(/(
ELP/NNP
Franklin/NNP
Multi-Income/NNP
Trust/NNP
,/,
San/NNP
Mateo/NNP
,/,
Calif./NNP
,/,
(/(
FMI/NNP
El/NNP
Paso/NNP
owns/VBZ
and/CC
operates/VBZ
a/DT
petroleum/NN
refinery/NN
./.
Franklin/NNP
is/VBZ
a/DT
closed-end/JJ
management/NN
investment/NN
company/NN
./.
On/IN
the/DT
Nasdaq/NNP
over-the-counter/JJ
system/NN
,/,
Allied/NNP
Capital/NNP
Corp./NNP
,/,
Washington/NNP
,/,
D.C./NNP
,/,
(/(
ALII/NNP
last/JJ
Thursday/NNP
./.
Allied/NNP
Capital/NNP
is/VBZ
a/DT
closed-end/JJ
management/NN
investment/NN
company/NN
that/WDT
will/MD
operate/VB
as/IN
a/DT
business/NN
development/NN
concern/NN
./.
THE/DT
YALE/NNP
POLITICAL/JJ
UNION/NN
does/VBZ
n't/RB
pay/VB
an/DT
honorarium/NN
to/TO
speakers/NNS
./.
In/IN
Thursday/NNP
's/POS
edition/NN
,/,
it/PRP
was/VBD
incorrectly/RB
indicated/VBN
that/IN
the/DT
union/NN
had/VBD
paid/VBN
a/DT
fee/NN
to/TO
former/JJ
House/NNP
Speaker/NNP
Jim/NNP
Wright/NNP
./.
Nation/NN
's/POS
Capital/NN
,/,
Scandal/NN
Need/MD
n't/RB
Cut/VB
One/PRP
's/POS
Speaking/NN
Fee/NN
--/:
Jim/NNP
Wright/NNP
,/,
Michael/NNP
Deaver/NNP
and/CC
Host/NN
of/IN
Others/NNS
Find/VBP
Careers/NNS
After/IN
Disgrace/NN
''/''
--/:
WSJ/NNP
Oct./NNP
26/CD
,/,
1989/CD
)/)
President/NNP
Bush/NNP
insists/VBZ
it/PRP
would/MD
be/VB
a/DT
great/JJ
tool/NN
for/IN
curbing/VBG
the/DT
budget/NN
deficit/NN
and/CC
slicing/VBG
the/DT
lard/NN
out/IN
of/IN
government/NN
programs/NNS
./.
He/PRP
wants/VBZ
it/PRP
now/RB
./.
Not/RB
so/IN
fast/RB
,/,
says/VBZ
Rep./NNP
Mickey/NNP
Edwards/NNP
of/IN
Oklahoma/NNP
,/,
a/DT
fellow/JJ
Republican/NNP
./.
``/``
I/PRP
consider/VBP
it/PRP
one/CD
of/IN
the/DT
stupidest/JJS
ideas/NNS
of/IN
the/DT
20th/JJ
century/NN
,/,
''/''
he/PRP
says/VBZ
./.
It/PRP
's/VBZ
the/DT
line-item/JJ
veto/NN
,/,
a/DT
procedure/NN
that/WDT
would/MD
allow/VB
the/DT
president/NN
to/TO
kill/VB
individual/JJ
items/NNS
in/IN
a/DT
big/JJ
spending/NN
bill/NN
passed/VBN
by/IN
Congress/NNP
without/IN
vetoing/VBG
the/DT
entire/JJ
bill/NN
./.
Whatever/WDT
one/PRP
thinks/VBZ
of/IN
the/DT
idea/NN
,/,
it/PRP
's/VBZ
far/RB
more/JJR
than/IN
the/DT
budgetary/JJ
gimmick/NN
it/PRP
may/MD
seem/VB
at/IN
first/JJ
glance/NN
./.
Rather/RB
,/,
it/PRP
's/VBZ
a/DT
device/NN
that/WDT
could/MD
send/VB
shock/NN
waves/NNS
through/IN
the/DT
president/NN
's/POS
entire/JJ
relationship/NN
with/IN
Democrats/NNPS
and/CC
Republicans/NNPS
alike/RB
in/IN
Congress/NNP
,/,
fundamentally/RB
enhance/VB
the/DT
power/NN
of/IN
the/DT
presidency/NN
and/CC
transform/VB
the/DT
way/NN
the/DT
government/NN
does/VBZ
its/PRP$
business/NN
./.
President/NNP
Bush/NNP
badly/RB
wants/VBZ
a/DT
line-item/JJ
veto/NN
and/CC
has/VBZ
long/RB
called/VBN
for/IN
a/DT
law/NN
giving/VBG
it/PRP
to/TO
the/DT
president/NN
./.
Now/RB
the/DT
White/NNP
House/NNP
is/VBZ
declaring/VBG
that/IN
he/PRP
might/MD
not/RB
rely/VB
on/IN
Congress/NNP
--/:
which/WDT
has/VBZ
n't/RB
shown/VBN
any/DT
willingness/NN
to/TO
surrender/VB
such/JJ
authority/NN
--/:
to/TO
pass/VB
the/DT
line-item/JJ
veto/NN
law/NN
he/PRP
seeks/VBZ
./.
White/NNP
House/NNP
spokesmen/NNS
last/JJ
week/NN
said/VBD
Mr./NNP
Bush/NNP
is/VBZ
considering/VBG
simply/RB
declaring/VBG
that/IN
the/DT
Constitution/NNP
gives/VBZ
him/PRP
the/DT
power/NN
,/,
exercising/VBG
a/DT
line-item/JJ
veto/NN
and/CC
inviting/VBG
a/DT
court/NN
challenge/NN
to/TO
decide/VB
whether/IN
he/PRP
has/VBZ
the/DT
right/NN
./.
Although/IN
that/DT
may/MD
sound/VB
like/IN
an/DT
arcane/JJ
maneuver/NN
of/IN
little/JJ
interest/NN
outside/IN
Washington/NNP
,/,
it/PRP
would/MD
set/VB
off/RP
a/DT
political/JJ
earthquake/NN
./.
``/``
The/DT
ramifications/NNS
are/VBP
enormous/JJ
,/,
''/''
says/VBZ
Rep./NNP
Don/NNP
Edwards/NNP
,/,
a/DT
California/NNP
Democrat/NNP
who/WP
is/VBZ
a/DT
senior/JJ
member/NN
of/IN
the/DT
House/NNP
Judiciary/NNP
Committee/NNP
./.
``/``
It/PRP
's/VBZ
a/DT
real/JJ
face-to-face/JJ
arm/NN
wrestling/NN
challenge/NN
to/TO
Congress/NNP
./.
''/''
White/NNP
House/NNP
aides/NNS
know/VBP
it/PRP
's/VBZ
a/DT
step/NN
that/WDT
ca/MD
n't/RB
be/VB
taken/VBN
lightly/RB
--/:
and/CC
for/IN
that/DT
reason/NN
,/,
the/DT
president/NN
may/MD
back/VB
down/RP
from/IN
launching/VBG
a/DT
test/NN
case/NN
this/DT
year/NN
./.
Some/DT
senior/JJ
advisers/NNS
argue/VBP
that/IN
with/IN
further/JJ
fights/NNS
over/IN
a/DT
capital-gains/NNS
tax/NN
cut/NN
and/CC
a/DT
budget-reduction/JJ
bill/NN
looming/VBG
,/,
Mr./NNP
Bush/NNP
already/RB
has/VBZ
enough/JJ
pending/JJ
confrontations/NNS
with/IN
Congress/NNP
./.
They/PRP
prefer/VBP
to/TO
put/VB
off/RP
the/DT
line-item/JJ
veto/NN
until/IN
at/IN
least/JJS
next/JJ
year/NN
./.
Still/RB
,/,
Mr./NNP
Bush/NNP
and/CC
some/DT
other/JJ
aides/NNS
are/VBP
strongly/RB
drawn/VBN
to/TO
the/DT
idea/NN
of/IN
trying/VBG
out/RP
a/DT
line-item/JJ
veto/NN
./.
The/DT
issue/NN
arose/VBD
last/JJ
week/NN
when/WRB
Vice/NNP
President/NNP
Dan/NNP
Quayle/NNP
told/VBD
an/DT
audience/NN
in/IN
Chicago/NNP
that/IN
Mr./NNP
Bush/NNP
was/VBD
looking/VBG
for/IN
a/DT
test/NN
case/NN
./.
White/NNP
House/NNP
Press/NNP
Secretary/NNP
Marlin/NNP
Fitzwater/NNP
confirmed/VBD
that/IN
Mr./NNP
Bush/NNP
was/VBD
interested/JJ
in/IN
the/DT
idea/NN
,/,
but/CC
cautioned/VBD
that/IN
there/EX
was/VBD
n't/RB
a/DT
firm/JJ
decision/NN
to/TO
try/VB
it/PRP
./.
Mr./NNP
Bush/NNP
,/,
former/JJ
President/NNP
Reagan/NNP
and/CC
a/DT
host/NN
of/IN
conservative/JJ
activists/NNS
have/VBP
been/VBN
arguing/VBG
that/IN
a/DT
line-item/JJ
veto/NN
would/MD
go/VB
a/DT
long/JJ
way/NN
in/IN
restoring/VBG
discipline/NN
to/TO
the/DT
budget/NN
process/NN
./.
They/PRP
maintain/VBP
that/IN
a/DT
president/NN
needs/VBZ
the/DT
ability/NN
to/TO
surgically/RB
remove/VB
pork-barrel/JJ
spending/NN
projects/NNS
that/WDT
are/VBP
attached/VBN
to/TO
big/JJ
omnibus/JJ
spending/NN
bills/NNS
./.
Those/DT
bills/NNS
ca/MD
n't/RB
easily/RB
be/VB
vetoed/VBN
in/IN
their/PRP$
entirety/NN
because/IN
they/PRP
often/RB
are/VBP
needed/VBN
to/TO
keep/VB
the/DT
government/NN
operating/VBG
./.
Conservatives/NNS
note/VBP
that/IN
43/CD
governors/NNS
have/VBP
the/DT
line-item/JJ
veto/NN
to/TO
use/VB
on/IN
state/NN
budgets/NNS
./.
More/RBR
provocatively/RB
,/,
some/DT
conservative/JJ
legal/JJ
theorists/NNS
have/VBP
begun/VBN
arguing/VBG
that/IN
Mr./NNP
Bush/NNP
does/VBZ
n't/RB
need/VB
to/TO
wait/VB
for/IN
a/DT
law/NN
giving/VBG
him/PRP
the/DT
veto/NN
because/IN
the/DT
power/NN
already/RB
is/VBZ
implicit/JJ
in/IN
the/DT
Constitution/NNP
./.
They/PRP
base/VBP
their/PRP$
argument/NN
on/IN
a/DT
clause/NN
buried/VBN
in/IN
Article/NNP
I/PRP
,/,
Section/NNP
7/CD
,/,
of/IN
the/DT
Constitution/NNP
that/WDT
states/VBZ
:/:
``/``
Every/DT
order/NN
,/,
resolution/NN
,/,
or/CC
vote/NN
to/TO
which/WDT
the/DT
concurrence/NN
of/IN
the/DT
Senate/NNP
and/CC
House/NNP
of/IN
Representatives/NNPS
may/MD
be/VB
necessary/JJ
(/(
except/IN
on/IN
a/DT
question/NN
of/IN
adjournment/NN
the/DT
President/NNP
of/IN
the/DT
United/NNP
States/NNPS
;/:
and/CC
before/IN
the/DT
same/JJ
shall/MD
take/VB
effect/NN
,/,
shall/MD
be/VB
approved/VBN
by/IN
him/PRP
or/CC
.../:
disapproved/VBN
by/IN
him/PRP
.../:
./.
''/''
This/DT
clause/NN
,/,
they/PRP
argue/VBP
,/,
is/VBZ
designed/VBN
to/TO
go/VB
beyond/IN
an/DT
earlier/JJR
clause/NN
specifying/VBG
that/IN
the/DT
president/NN
can/MD
veto/VB
a/DT
``/``
bill/NN
,/,
''/''
and/CC
is/VBZ
broad/JJ
enough/RB
to/TO
allow/VB
him/PRP
to/TO
strike/VB
out/RP
items/NNS
and/CC
riders/NNS
within/IN
bills/NNS
./.
Senate/NNP
Minority/NNP
Leader/NNP
Robert/NNP
Dole/NNP
R./NNP
,/,
Kan./NNP
one/CD
,/,
accepts/VBZ
this/DT
argument/NN
and/CC
earlier/RBR
this/DT
year/NN
publicly/RB
urged/VBD
Mr./NNP
Bush/NNP
``/``
to/TO
use/VB
the/DT
line-item/JJ
veto/NN
and/CC
allow/VB
the/DT
courts/NNS
to/TO
decide/VB
whether/IN
or/CC
not/RB
it/PRP
is/VBZ
constitutional/JJ
./.
''/''
There/EX
's/POS
little/JJ
doubt/NN
that/IN
such/PDT
a/DT
move/NN
would/MD
be/VB
immediately/RB
challenged/VBN
in/IN
court/NN
--/:
and/CC
that/IN
it/PRP
would/MD
quickly/RB
make/VB
its/PRP$
way/NN
to/TO
the/DT
Supreme/NNP
Court/NNP
to/TO
be/VB
ultimately/RB
resolved/VBN
./.
``/``
It/PRP
's/VBZ
a/DT
major/JJ
issue/NN
,/,
and/CC
they/PRP
would/MD
n't/RB
want/VB
to/TO
leave/VB
it/PRP
at/IN
a/DT
lower/JJR
level/NN
,/,
''/''
says/VBZ
Stephen/NNP
Glazier/NNP
,/,
a/DT
New/NNP
York/NNP
attorney/NN
whose/WP$
writings/NNS
have/VBP
been/VBN
instrumental/JJ
in/IN
pushing/VBG
the/DT
idea/NN
that/IN
a/DT
president/NN
already/RB
has/VBZ
a/DT
line-item/JJ
veto/NN
./.
Rep./NNP
Edwards/NNP
,/,
the/DT
California/NNP
Democrat/NNP
,/,
is/VBZ
one/CD
who/WP
pledges/VBZ
that/IN
he/PRP
would/MD
immediately/RB
challenge/VB
Mr./NNP
Bush/NNP
in/IN
the/DT
courts/NNS
,/,
arguing/VBG
a/DT
line-item/JJ
veto/NN
would/MD
expand/VB
a/DT
president/NN
's/POS
powers/NNS
far/RB
beyond/IN
anything/NN
the/DT
framers/NNS
of/IN
the/DT
Constitution/NNP
had/VBD
in/IN
mind/NN
./.
``/``
It/PRP
puts/VBZ
this/DT
president/NN
in/IN
the/DT
legislative/JJ
business/NN
,/,
''/''
he/PRP
declares/VBZ
./.
``/``
That/DT
's/VBZ
not/RB
what/WP
our/PRP$
fathers/NNS
had/VBN
in/IN
mind/NN
./.
''/''
In/IN
addition/NN
to/TO
giving/VBG
a/DT
president/NN
powers/NNS
to/TO
rewrite/VB
spending/NN
bills/NNS
meant/VBN
to/TO
be/VB
written/VBN
in/IN
Congress/NNP
,/,
Rep./NNP
Edwards/NNP
argues/VBZ
,/,
a/DT
line-item/JJ
veto/NN
would/MD
allow/VB
the/DT
chief/JJ
executive/NN
to/TO
blackmail/VB
lawmakers/NNS
./.
He/PRP
notes/VBZ
that/IN
,/,
as/IN
a/DT
lawmaker/NN
from/IN
the/DT
San/NNP
Francisco/NNP
area/NN
,/,
he/PRP
fights/VBZ
each/DT
year/NN
to/TO
preserve/VB
federal/JJ
funds/NNS
for/IN
the/DT
Bay/NNP
Area/NNP
Rapid/NNP
Transit/NNP
system/NN
./.
If/IN
a/DT
president/NN
had/VBD
a/DT
line-item/JJ
veto/NN
and/CC
wanted/VBD
to/TO
force/VB
him/PRP
to/TO
support/VB
a/DT
controversial/JJ
foreign-policy/NN
initiative/NN
,/,
Rep./NNP
Edwards/NNP
says/VBZ
,/,
the/DT
president/NN
could/MD
call/VB
and/CC
declare/VB
that/IN
he/PRP
would/MD
single-handedly/RB
kill/VB
the/DT
BART/NNP
funds/NNS
unless/IN
the/DT
congressman/NN
``/``
shapes/VBZ
up/RP
''/''
on/IN
the/DT
foreign-policy/NN
issue/NN
./.
Proponents/NNS
maintain/VBP
that/IN
a/DT
president/NN
would/MD
choose/VB
to/TO
use/VB
a/DT
line-item/JJ
veto/NN
more/RBR
judiciously/RB
than/IN
that/DT
./.
But/CC
there/EX
may/MD
be/VB
another/DT
problem/NN
with/IN
the/DT
device/NN
:/:
Despite/IN
all/PDT
the/DT
political/JJ
angst/NN
it/PRP
would/MD
cause/VB
,/,
it/PRP
might/MD
n't/RB
be/VB
effective/JJ
in/IN
cutting/VBG
the/DT
deficit/NN
./.
Big/JJ
chunks/NNS
of/IN
the/DT
government/NN
budget/NN
,/,
like/IN
the/DT
entitlement/NN
programs/NNS
of/IN
Social/NNP
Security/NNP
and/CC
Medicare/NNP
,/,
would/MD
n't/RB
be/VB
affected/VBN
./.
Governors/NNS
have/VBP
found/VBN
that/IN
they/PRP
have/VBP
to/TO
use/VB
the/DT
device/NN
sparingly/RB
to/TO
maintain/VB
political/JJ
comity/NN
./.
And/CC
it/PRP
is/VBZ
n't/RB
even/RB
clear/JJ
that/IN
some/DT
pork-barrel/JJ
projects/NNS
can/MD
be/VB
hit/VBN
with/IN
a/DT
line-item/JJ
veto/NN
because/IN
they/PRP
tend/VBP
to/TO
be/VB
listed/VBN
in/IN
informal/JJ
conference/NN
reports/NNS
accompanying/VBG
spending/NN
bills/NNS
rather/RB
than/IN
in/IN
the/DT
official/JJ
bills/NNS
themselves/PRP
./.
Still/RB
,/,
proponents/NNS
contend/VB
that/IN
the/VBP
veto/NN
would/MD
have/VB
what/WP
Mr./NNP
Glazier/NNP
calls/VBZ
an/DT
important/JJ
``/``
chilling/JJ
effect/NN
''/''
on/IN
all/DT
manner/NN
of/IN
appropriations/NNS
bills/NNS
./.
Lawmakers/NNS
,/,
they/PRP
say/VBP
,/,
would/MD
avoid/VB
putting/VBG
many/JJ
spending/NN
projects/NNS
into/IN
legislation/NN
in/IN
the/DT
first/JJ
place/NN
for/IN
fear/NN
of/IN
the/DT
embarrassment/NN
of/IN
having/VBG
them/PRP
singled/VBN
out/RP
for/IN
a/DT
line-item/JJ
veto/NN
later/RB
./.
Whatever/WDT
the/DT
outcome/NN
of/IN
a/DT
test/NN
case/NN
,/,
President/NNP
Bush/NNP
would/MD
have/VB
to/TO
move/VB
cautiously/RB
becase/IN
the/DT
very/JJ
attempt/NN
would/MD
``/``
antagonize/VB
not/RB
just/RB
Democrats/NNPS
but/CC
Republicans/NNPS
,/,
''/''
says/VBZ
Louis/NNP
Fisher/NNP
,/,
a/DT
scholar/NN
at/IN
the/DT
Congressional/NNP
Research/NNP
Service/NNP
who/WP
specializes/VBZ
in/IN
executive-legislative/JJ
relations/NNS
./.
Republicans/NNPS
have/VBP
as/RB
much/JJ
interest/NN
as/IN
Democrats/NNPS
in/IN
``/``
the/DT
way/NN
the/DT
system/NN
works/VBZ
,/,
''/''
he/PRP
notes/VBZ
./.
Indeed/RB
,/,
although/IN
a/DT
majority/NN
of/IN
Republican/JJ
lawmakers/NNS
favor/VBP
a/DT
line-item/JJ
veto/NN
,/,
some/DT
,/,
ranging/VBG
from/IN
liberal/JJ
Oregon/NNP
Sen./NNP
Mark/NNP
Hatfield/NNP
to/TO
conservative/JJ
Rep./NNP
Edwards/NNP
are/VBP
opposed/JJ
./.
Rep./NNP
Edwards/NNP
voices/VBZ
the/DT
traditional/JJ
conservative/JJ
view/NN
that/IN
it/PRP
's/VBZ
a/DT
mistake/NN
to/TO
put/VB
too/RB
much/JJ
power/NN
in/IN
the/DT
hands/NNS
of/IN
a/DT
single/JJ
person/NN
./.
Conservatives/NNS
pushing/VBG
for/IN
a/DT
line-item/JJ
veto/NN
now/RB
,/,
he/PRP
notes/VBZ
,/,
may/MD
regret/VB
it/PRP
later/RB
:/:
``/``
Sometime/RB
,/,
you/PRP
're/VBP
going/VBG
to/TO
have/VB
a/DT
Democratic/JJ
president/NN
again/RB
''/''
who/WP
'll/MD
use/VB
his/PRP$
expanded/JJ
powers/NNS
against/IN
those/DT
very/JJ
same/JJ
conservatives/NNS
./.
``/``
Every/DT
order/NN
,/,
resolution/NN
,/,
or/CC
vote/NN
to/TO
which/WDT
the/DT
concurrence/NN
of/IN
the/DT
Senate/NNP
and/CC
House/NNP
of/IN
Representatives/NNPS
may/MD
be/VB
necessary/JJ
(/(
except/IN
on/IN
a/DT
question/NN
of/IN
adjournment/NN
the/DT
President/NNP
of/IN
the/DT
United/NNP
States/NNPS
;/:
and/CC
before/IN
the/DT
same/JJ
shall/MD
take/VB
effect/NN
,/,
shall/MD
be/VB
approved/VBN
by/IN
him/PRP
,/,
or/CC
being/VBG
disapproved/VBN
by/IN
him/PRP
,/,
shall/MD
be/VB
repassed/VBN
by/IN
two-thirds/NNS
of/IN
the/DT
Senate/NNP
and/CC
House/NNP
of/IN
Representatives/NNPS
,/,
according/VBG
to/TO
the/DT
rules/NNS
and/CC
limitations/NNS
prescribed/VBN
in/IN
the/DT
case/NN
of/IN
a/DT
bill/NN
./.
''/''
--/:
The/DT
Constitution/NNP
,/,
Article/NN
I/CD
,/,
Section/NN
7/CD
,/,
Clause/NN
3/CD
This/DT
has/VBZ
n't/RB
been/VBN
Kellogg/NNP
Co./NNP
's/POS
year/NN
./.
The/DT
oat-bran/NN
craze/NN
has/VBZ
cost/VBN
the/DT
world/NN
's/POS
largest/JJS
cereal/NN
maker/NN
market/NN
share/NN
./.
The/DT
company/NN
's/POS
president/NN
quit/VBD
suddenly/RB
./.
And/CC
now/RB
Kellogg/NNP
is/VBZ
indefinitely/RB
suspending/VBG
work/NN
on/IN
what/WP
was/VBD
to/TO
be/VB
a/DT
$/$
1/CD
billion/CD
cereal/NN
plant/NN
./.
The/DT
company/NN
said/VBD
it/PRP
was/VBD
delaying/VBG
construction/NN
because/IN
of/IN
current/JJ
market/NN
conditions/NNS
./.
But/CC
the/DT
Memphis/NNP
,/,
Tenn./NNP
,/,
facility/NN
was/VBD
n't/RB
to/TO
begin/VB
turning/VBG
out/RP
product/NN
until/IN
1993/CD
,/,
so/IN
the/DT
decision/NN
may/MD
reveal/VB
a/DT
more/RBR
pessimistic/JJ
long-term/JJ
outlook/NN
as/RB
well/RB
./.
Kellogg/NNP
,/,
which/WDT
has/VBZ
n't/RB
been/VBN
as/RB
successful/JJ
in/IN
capitalizing/VBG
on/IN
the/DT
public/NN
's/POS
health-oriented/JJ
desire/NN
for/IN
oat/NN
bran/NN
as/IN
rival/JJ
General/NNP
Mills/NNP
Inc./NNP
,/,
has/VBZ
been/VBN
losing/VBG
share/NN
in/IN
the/DT
$/$
6/CD
billion/CD
ready-to-eat/JJ
cereal/NN
market/NN
./.
Kellogg/NNP
's/POS
current/JJ
share/NN
is/VBZ
believed/VBN
to/TO
be/VB
slightly/RB
under/IN
40/CD
%/NN
while/IN
General/NNP
Mills/NNP
'/POS
share/NN
is/VBZ
about/RB
27/CD
%/NN
./.
Led/VBN
by/IN
its/PRP$
oat-based/JJ
Cheerios/NNPS
line/NN
,/,
General/NNP
Mills/NNP
has/VBZ
gained/VBN
an/DT
estimated/JJ
2/CD
%/NN
share/NN
so/RB
far/RB
this/DT
year/NN
,/,
mostly/RB
at/IN
the/DT
expense/NN
of/IN
Kellogg/NNP
./.
Each/DT
share/NN
point/NN
is/VBZ
worth/IN
about/RB
$/$
60/CD
million/CD
in/IN
sales/NNS
./.
Analysts/NNS
say/VBP
much/JJ
of/IN
Kellogg/NNP
's/POS
erosion/NN
has/VBZ
been/VBN
in/IN
such/JJ
core/NN
brands/NNS
as/IN
Corn/NNP
Flakes/NNPS
,/,
Rice/NNP
Krispies/NNPS
and/CC
Frosted/NNP
Flakes/NNPS
,/,
which/WDT
represent/VBP
nearly/RB
one-third/NN
of/IN
its/PRP$
sales/NNS
volume/NN
./.
Kellogg/NNP
is/VBZ
so/RB
anxious/JJ
to/TO
turn/VB
around/RP
Corn/NNP
Flakes/NNP
sales/NNS
that/IN
it/PRP
soon/RB
will/MD
begin/VB
selling/VBG
boxes/NNS
for/IN
as/RB
little/JJ
as/IN
99/CD
cents/NNS
,/,
trade/NN
sources/NNS
say/VBP
./.
``/``
Cheerios/NNPS
and/CC
Honey/NNP
Nut/NNP
Cheerios/NNPS
have/VBP
eaten/VBN
away/RP
sales/NNS
normally/RB
going/VBG
to/TO
Kellogg/NNP
's/POS
corn-based/JJ
lines/NNS
simply/RB
because/IN
they/PRP
are/VBP
made/VBN
of/IN
oats/NNS
,/,
''/''
says/VBZ
Merrill/NNP
Lynch/NNP
food/NN
analyst/NN
William/NNP
Maguire/NNP
./.
``/``
They/PRP
are/VBP
not/RB
a/DT
happy/JJ
group/NN
of/IN
people/NNS
at/IN
Battle/NNP
Creek/NNP
right/RB
now/RB
./.
''/''
Kellogg/NNP
is/VBZ
based/VBN
in/IN
Battle/NNP
Creek/NNP
,/,
Mich./NNP
,/,
a/DT
city/NN
that/WDT
calls/VBZ
itself/PRP
the/DT
breakfast/NN
capital/NN
of/IN
the/DT
world/NN
./.
Another/DT
analyst/NN
,/,
John/NNP
C./NNP
Maxwell/NNP
Jr./NNP
of/IN
Wheat/NNP
,/,
First/NNP
Securities/NNP
in/IN
Richmond/NNP
,/,
Va./NNP
,/,
recently/RB
went/VBD
to/TO
a/DT
``/``
sell/NN
''/''
recommendation/NN
on/IN
Kellogg/NNP
stock/NN
,/,
which/WDT
closed/VBD
Friday/NNP
at/IN
$/$
71.75/CD
,/,
down/RB
75/CD
cents/NNS
,/,
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
``/``
I/PRP
do/VBP
n't/RB
think/VB
Kellogg/NNP
can/MD
get/VB
back/RB
to/TO
40/CD
%/NN
this/DT
year/NN
,/,
''/''
he/PRP
said/VBD
./.
``/``
Kellogg/NNP
's/POS
main/JJ
problem/NN
is/VBZ
life/NN
style/NN
./.
People/NNS
are/VBP
reading/VBG
the/DT
boxes/NNS
and/CC
deciding/VBG
they/PRP
want/VBP
something/NN
that/WDT
's/POS
`/``
healthy/JJ
'/''
for/IN
you/PRP
--/:
oats/NNS
,/,
bran/NN
./.
''/''
Mr./NNP
Maxwell/NNP
said/VBD
he/PRP
would/MD
n't/RB
be/VB
surprised/JJ
if/IN
,/,
over/IN
the/DT
next/JJ
two/CD
years/NNS
or/CC
so/RB
,/,
General/NNP
Mills/NNP
'/POS
share/NN
increased/VBD
to/TO
30/CD
%/NN
or/CC
more/JJR
./.
In/IN
announcing/VBG
the/DT
plant/NN
delay/NN
,/,
Kellogg/NNP
Chairman/NNP
William/NNP
E./NNP
LaMothe/NNP
said/VBD
,/,
``/``
Cereal/NN
volume/NN
growth/NN
in/IN
the/DT
U.S./NNP
has/VBZ
not/RB
met/VBN
our/PRP$
expectations/NNS
for/IN
1989/CD
./.
''/''
He/PRP
said/VBD
construction/NN
would/MD
n't/RB
resume/VB
until/IN
market/NN
conditions/NNS
warrant/VBP
it/PRP
./.
Kellogg/NNP
indicated/VBD
that/IN
it/PRP
has/VBZ
room/NN
to/TO
grow/VB
without/IN
adding/VBG
facilities/NNS
./.
The/DT
company/NN
has/VBZ
five/CD
other/JJ
U.S./NNP
plants/NNS
,/,
including/VBG
a/DT
modern/JJ
facility/NN
at/IN
its/PRP$
Battle/NNP
Creek/NNP
headquarters/NNS
known/VBN
as/IN
Building/NN
100/CD
,/,
which/WDT
is/VBZ
to/TO
add/VB
bran-processing/JJ
and/CC
rice-processing/JJ
capacity/NN
next/IN
year/NN
./.
General/NNP
Mills/NNP
,/,
meanwhile/RB
,/,
finds/VBZ
itself/PRP
constrained/VBN
from/IN
boosting/VBG
sales/NNS
further/RBR
because/IN
its/PRP$
plants/NNS
are/VBP
operating/VBG
at/IN
capacity/NN
./.
A/DT
large/JJ
plant/NN
in/IN
Covington/NNP
,/,
Ga./NNP
,/,
is/VBZ
to/TO
come/VB
on/IN
line/NN
next/IN
year/NN
./.
A/DT
Kellogg/NNP
officer/NN
,/,
who/WP
asked/VBD
not/RB
to/TO
be/VB
named/VBN
,/,
said/VBD
the/DT
Memphis/NNP
project/NN
was/VBD
``/``
pulled/VBD
in/RP
for/IN
a/DT
reconsideration/NN
of/IN
costs/NNS
,/,
''/''
an/DT
indication/NN
that/IN
the/DT
ambitious/JJ
plans/NNS
might/MD
be/VB
scaled/VBN
back/RP
in/IN
any/DT
future/JJ
construction/NN
./.
Initial/JJ
cost/NN
estimates/NNS
for/IN
the/DT
plant/NN
,/,
which/WDT
was/VBD
to/TO
have/VB
been/VBN
built/VBN
in/IN
phases/NNS
,/,
ranged/VBD
from/IN
$/$
1/CD
billion/CD
to/TO
$/$
1.2/CD
billion/CD
./.
A/DT
company/NN
spokesman/NN
said/VBD
it/PRP
was/VBD
``/``
possible/JJ
,/,
but/CC
highly/RB
unlikely/JJ
,/,
''/''
that/IN
the/DT
plant/NN
might/MD
never/RB
be/VB
built/VBN
./.
``/``
As/IN
we/PRP
regain/VBP
our/PRP$
leadership/NN
level/NN
where/WRB
we/PRP
have/VB
been/VBN
,/,
and/CC
as/IN
we/VBP
continue/VBP
to/TO
put/VB
new/JJ
products/NNS
into/IN
the/DT
marketplace/NN
and/CC
need/VBP
additional/JJ
capacity/NN
,/,
we/PRP
will/MD
look/VB
at/IN
resuming/VBG
our/PRP$
involvement/NN
with/IN
our/PRP$
plan/NN
,/,
''/''
he/PRP
said/VBD
./.
The/DT
new/JJ
facility/NN
was/VBD
to/TO
have/VB
been/VBN
the/DT
world/NN
's/VBZ
most/RBS
advanced/JJ
cereal/NN
manufacturing/NN
plant/NN
,/,
and/CC
Kellogg/NNP
's/POS
largest/JJS
construction/NN
project/NN
./.
The/DT
company/NN
had/VBD
retained/VBN
the/DT
Fluor/NNP
Daniel/NNP
unit/NN
of/IN
Fluor/NNP
Corp./NNP
as/IN
general/JJ
contractor/NN
./.
But/CC
in/IN
recent/JJ
weeks/NNS
,/,
construction-industry/NN
sources/NNS
reported/VBD
that/DT
early/JJ
preparation/NN
work/NN
was/VBD
slowing/VBG
at/IN
the/DT
185-acre/JJ
site/NN
./.
Subcontractors/NNS
said/VBD
they/PRP
were/VBD
told/VBN
that/IN
equipment/NN
orders/NNS
would/MD
be/VB
delayed/VBN
./.
Fluor/NNP
Daniel/NNP
already/RB
has/VBZ
reassigned/VBN
most/JJS
of/IN
its/PRP$
work/NN
crew/NN
,/,
the/DT
sources/NNS
said/VBD
./.
Last/JJ
Friday/NNP
's/POS
announcement/NN
was/VBD
the/DT
first/JJ
official/NN
word/NN
that/IN
the/DT
project/NN
was/VBD
in/IN
trouble/NN
and/CC
that/IN
the/DT
company/NN
's/POS
plans/NNS
for/IN
a/DT
surge/NN
in/IN
market/NN
share/NN
may/MD
have/VB
been/VBN
overly/RB
optimistic/JJ
./.
Until/IN
recently/RB
,/,
Kellogg/NN
had/VBD
been/VBN
telling/VBG
its/PRP$
sales/NNS
force/NN
and/CC
Wall/NNP
Street/NNP
that/IN
by/IN
1992/CD
it/PRP
intended/VBD
to/TO
achieve/VB
a/DT
50/CD
%/NN
share/NN
of/IN
market/NN
,/,
measured/VBN
in/IN
dollar/NN
volume/NN
./.
Although/IN
he/PRP
called/VBD
current/JJ
market/NN
conditions/NNS
``/``
highly/RB
competitive/JJ
,/,
''/''
Mr./NNP
LaMothe/NNP
,/,
Kellogg/NNP
's/POS
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
forecast/VBD
an/DT
earnings/NNS
increase/NN
for/IN
the/DT
full/JJ
year/NN
./.
Last/JJ
year/NN
,/,
the/DT
company/NN
earned/VBD
$/$
480.4/CD
million/CD
,/,
or/CC
$/$
3.90/CD
a/DT
share/NN
,/,
on/IN
sales/NNS
of/IN
$/$
4.3/CD
billion/CD
./.
As/IN
expected/VBN
,/,
Kellogg/NN
reported/VBD
lower/JJR
third-quarter/JJ
earnings/NNS
./.
Net/NN
fell/VBD
16/CD
%/NN
to/TO
$/$
123.1/CD
million/CD
,/,
or/CC
$/$
1.02/CD
a/DT
share/NN
,/,
from/IN
$/$
145.7/CD
million/CD
,/,
or/CC
$/$
1.18/CD
a/DT
share/NN
./.
Sales/NNS
rose/VBD
4.8/CD
%/NN
to/TO
$/$
1.20/CD
billion/CD
from/IN
$/$
1.14/CD
billion/CD
./.
The/DT
company/NN
had/VBD
a/DT
one-time/JJ
charge/NN
of/IN
$/$
14.8/CD
million/CD
in/IN
the/DT
latest/JJS
quarter/NN
covering/VBG
the/DT
disposition/NN
of/IN
certain/JJ
assets/NNS
./.
The/DT
company/NN
would/MD
n't/RB
elaborate/VB
,/,
citing/VBG
competitive/JJ
reasons/NNS
./.
PARKER/NNP
HANNIFIN/NNP
Corp./NNP
,/,
which/WDT
is/VBZ
selling/VBG
three/CD
automotive/JJ
replacement/NN
parts/NNS
divisions/NNS
,/,
said/VBD
it/PRP
will/MD
retain/VB
its/PRP$
Automotive/NNP
Connectors/NNPS
and/CC
Cliff/NNP
Impact/NNP
divisions/NNS
./.
The/DT
divisions/NNS
that/WDT
Parker/NNP
Hannifin/NNP
is/VBZ
retaining/VBG
were/VBD
n't/RB
mentioned/VBN
in/IN
Thursday/NNP
's/POS
edition/NN
./.
Parker/NNP
Hannifin/NNP
Sale/NN
''/''
--/:
WSJ/NNP
Oct./NNP
26/CD
,/,
1989/CD
)/)
The/DT
following/JJ
were/VBD
among/IN
Friday/NNP
's/POS
offerings/NNS
and/CC
pricings/NNS
in/IN
the/DT
U.S./NNP
and/CC
non-U.S./JJ
capital/NN
markets/NNS
,/,
with/IN
terms/NNS
and/CC
syndicate/NN
manager/NN
,/,
as/IN
compiled/VBN
by/IN
Dow/NNP
Jones/NNP
Capital/NNP
Markets/NNPS
Report/NNP
:/:
Sun/NNP
Microsystems/NNPS
Inc./NNP
--/:
$/$
125/CD
million/CD
of/IN
6/CD
3\/8/CD
%/NN
convertible/JJ
subordinated/JJ
debentures/NNS
due/JJ
Oct./NNP
15/CD
,/,
1999/CD
,/,
priced/VBN
at/IN
84.90/CD
to/TO
yield/VB
7.51/CD
%/NN
./.
The/DT
debentures/NNS
are/VBP
convertible/JJ
into/IN
common/JJ
stock/NN
at/IN
$/$
25/CD
a/DT
share/NN
,/,
representing/VBG
a/DT
24/CD
%/NN
conversion/NN
premium/NN
over/IN
Thursday/NNP
's/POS
closing/NN
price/NN
./.
Rated/VBN
single-B-1/JJ
by/IN
Moody/NNP
's/POS
Investors/NNPS
Service/NNP
Inc./NNP
and/CC
single-B-plus/JJ
by/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NNP
,/,
the/DT
issue/NN
will/MD
be/VB
sold/VBN
through/IN
underwriters/NNS
led/VBN
by/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
./.
Hertz/NNP
Corp./NNP
--/:
$/$
100/CD
million/CD
of/IN
senior/JJ
notes/NNS
due/JJ
Nov./NNP
1/CD
,/,
2009/CD
,/,
priced/VBN
at/IN
par/NN
to/TO
yield/VB
9/CD
%/NN
./.
The/DT
issue/NN
,/,
which/WDT
is/VBZ
puttable/JJ
back/RB
to/TO
the/DT
company/NN
in/IN
1999/CD
,/,
was/VBD
priced/VBN
at/IN
a/DT
spread/NN
of/IN
110/CD
basis/NN
points/NNS
above/IN
the/DT
Treasury/NNP
's/POS
10-year/JJ
note/NN
./.
Rated/VBN
single-A-3/JJ
by/IN
Moody/NNP
's/POS
and/CC
triple-B/JJ
by/IN
S*/NNP&P/NN
,/,
the/DT
issue/NN
will/MD
be/VB
sold/VBN
through/IN
underwriters/NNS
led/VBN
by/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNPS
./.
Canadian/NNP
Imperial/NNP
Bank/NNP
of/IN
Commerce/NNP
Canada/NNP
10/CD
billion/CD
yen/NNS
of/IN
5.7/CD
%/NN
bonds/NNS
due/JJ
Nov./NNP
17/CD
,/,
1992/CD
,/,
priced/VBN
at/IN
101/CD
1\/4/CD
to/TO
yield/VB
5.75/CD
%/NN
less/CC
full/JJ
fees/NNS
,/,
via/IN
LTCB/NNP
International/NNP
Ltd/NNP
./.
Fees/NNS
1/CD
3\/8/CD
./.
The/DT
Singapore/NNP
and/CC
Kuala/NNP
Lumpur/NNP
stock/NN
exchanges/NNS
are/VBP
bracing/VBG
for/IN
a/DT
turbulent/JJ
separation/NN
,/,
following/VBG
Malaysian/JJ
Finance/NNP
Minister/NNP
Daim/NNP
Zainuddin/NNP
's/POS
long-awaited/JJ
announcement/NN
that/IN
the/DT
exchanges/NNS
will/MD
sever/VB
ties/NNS
./.
On/IN
Friday/NNP
,/,
Datuk/NNP
Daim/NNP
added/VBD
spice/NN
to/TO
an/DT
otherwise/RB
unremarkable/JJ
address/NN
on/IN
Malaysia/NNP
's/POS
proposed/JJ
budget/NN
for/IN
1990/CD
by/IN
ordering/VBG
the/DT
Kuala/NNP
Lumpur/NNP
Stock/NNP
Exchange/NNP
``/``
to/TO
take/VB
appropriate/JJ
action/NN
immediately/RB
''/''
to/TO
cut/VB
its/PRP$
links/NNS
with/IN
the/DT
Stock/NNP
Exchange/NNP
of/IN
Singapore/NNP
./.
The/DT
delisting/NN
of/IN
Malaysian-based/JJ
companies/NNS
from/IN
the/DT
Singapore/NNP
exchange/NN
may/MD
not/RB
be/VB
a/DT
smooth/JJ
process/NN
,/,
analysts/NNS
say/VBP
./.
Though/IN
the/DT
split/NN
has/VBZ
long/RB
been/VBN
expected/VBN
,/,
the/DT
exchanges/NNS
are/VBP
n't/RB
fully/RB
prepared/JJ
to/TO
go/VB
their/PRP$
separate/JJ
ways/NNS
./.
The/DT
finance/NN
minister/NN
's/POS
order/NN
was/VBD
n't/RB
sparked/VBN
by/IN
a/DT
single/JJ
event/NN
and/CC
does/VBZ
n't/RB
indicate/VB
a/DT
souring/NN
in/IN
relations/NNS
between/IN
the/DT
neighboring/JJ
countries/NNS
./.
Rather/RB
,/,
the/DT
two/CD
closely/RB
linked/VBN
exchanges/NNS
have/VBP
been/VBN
drifting/VBG
apart/RB
for/IN
some/DT
years/NNS
,/,
with/IN
a/DT
nearly/RB
five-year-old/JJ
moratorium/NN
on/IN
new/JJ
dual/JJ
listings/NNS
,/,
separate/JJ
and/CC
different/JJ
listing/NN
requirements/NNS
,/,
differing/VBG
trading/NN
and/CC
settlement/NN
guidelines/NNS
and/CC
diverging/VBG
national-policy/NN
aims/NNS
./.
QUANTUM/NNP
CHEMICAL/NNP
Corp./NNP
's/POS
plant/NN
in/IN
Morris/NNP
,/,
Ill./NNP
,/,
is/VBZ
expected/VBN
to/TO
resume/VB
production/NN
in/IN
early/JJ
1990/CD
./.
The/DT
year/NN
was/VBD
misstated/VBN
in/IN
Friday/NNP
's/POS
editions/NNS
./.
Dividend/NN
News/NN
:/:
Payout/NN
Stalled/VBN
at/IN
Quantum/NNP
Chemical/NNP
Corp./NNP
--/:
Firm/NN
Posts/VBZ
Quarterly/JJ
Loss/NN
,/,
Plans/VBZ
a/DT
Stock/NN
Dividend/NN
to/TO
Take/VB
Place/NN
of/IN
Cash/NN
''/''
--/:
WSJ/NNP
Oct./NNP
27/CD
,/,
1989/CD
)/)
Italy/NNP
's/POS
trade/NN
deficit/NN
narrowed/VBD
to/TO
2.007/CD
trillion/CD
lire/NNS
$/$
1.49/CD
billion/CD
September/NNP
from/IN
2.616/CD
trillion/CD
lire/NNS
a/DT
year/NN
earlier/RBR
,/,
the/DT
state/NN
statistical/JJ
office/NN
Istat/NNP
said/VBD
./.
The/DT
deficit/NN
was/VBD
466/CD
billion/CD
lire/NNS
in/IN
August/NNP
./.
For/IN
the/DT
first/JJ
nine/CD
months/NNS
,/,
the/DT
trade/NN
deficit/NN
was/VBD
14.933/CD
trillion/CD
lire/NNS
,/,
compared/VBN
with/IN
10.485/CD
trillion/CD
lire/NNS
in/IN
the/DT
year-earlier/JJ
period/NN
./.
Istat/NNP
said/VBD
the/DT
statistics/NNS
are/VBP
provisional/JJ
and/CC
are/VBP
n't/RB
seasonally/RB
adjusted/VBN
./.
Imports/NNS
rose/VBD
11/CD
%/NN
to/TO
18.443/CD
trillion/CD
lire/NNS
in/IN
September/NNP
from/IN
a/DT
year/NN
earlier/RBR
,/,
while/IN
exports/NNS
rose/VBD
17/CD
%/NN
to/TO
16.436/CD
trillion/CD
lire/NNS
./.
In/IN
the/DT
nine/CD
months/NNS
,/,
imports/NNS
rose/VBD
20/CD
%/NN
to/TO
155.039/CD
trillion/CD
lire/NNS
,/,
while/IN
exports/NNS
grew/VBD
18/CD
%/NN
to/TO
140.106/CD
trillion/CD
lire/NNS
./.
Import/NN
values/NNS
are/VBP
calculated/VBN
on/IN
a/DT
cost/NN
,/,
insurance/NN
and/CC
freight/NN
c.i.f/JJ
./.
basis/NN
,/,
while/IN
exports/NNS
are/VBP
accounted/VBN
for/IN
on/IN
a/DT
free-on-board/JJ
f.o.b/JJ
./.
basis/NN
./.
As/IN
competition/NN
heats/VBZ
up/RP
in/IN
Spain/NNP
's/POS
crowded/JJ
bank/NN
market/NN
,/,
Banco/NNP
Exterior/NNP
de/FW
Espana/NNP
is/VBZ
seeking/VBG
to/TO
shed/VB
its/PRP$
image/NN
of/IN
a/DT
state-owned/JJ
bank/NN
and/CC
move/VB
into/IN
new/JJ
activities/NNS
./.
Under/IN
the/DT
direction/NN
of/IN
its/PRP$
new/JJ
chairman/NN
,/,
Francisco/NNP
Luzon/NNP
,/,
Spain/NNP
's/POS
seventh/JJ
largest/JJS
bank/NN
is/VBZ
undergoing/VBG
a/DT
tough/JJ
restructuring/NN
that/WDT
analysts/NNS
say/VBP
may/MD
be/VB
the/DT
first/JJ
step/NN
toward/IN
the/DT
bank/NN
's/POS
privatization/NN
./.
The/DT
state-owned/JJ
industrial/JJ
holding/VBG
company/NN
Instituto/NNP
Nacional/NNP
de/FW
Industria/NNP
and/CC
the/DT
Bank/NNP
of/IN
Spain/NNP
jointly/RB
hold/VBP
a/DT
13.94/CD
%/NN
stake/NN
in/IN
Banco/NNP
Exterior/NNP
./.
The/DT
government/NN
directly/RB
owns/VBZ
51.4/CD
%/NN
and/CC
Factorex/NNP
,/,
a/DT
financial/JJ
services/NNS
company/NN
,/,
holds/VBZ
8.42/CD
%/NN
./.
The/DT
rest/NN
is/VBZ
listed/VBN
on/IN
Spanish/JJ
stock/NN
exchanges/NNS
./.
Some/DT
analysts/NNS
are/VBP
concerned/JJ
,/,
however/RB
,/,
that/IN
Banco/NNP
Exterior/NNP
may/MD
have/VB
waited/VBD
too/RB
long/JJ
to/TO
diversify/VB
from/IN
its/PRP$
traditional/JJ
export-related/JJ
activities/NNS
./.
Catching/VBG
up/RP
with/IN
commercial/JJ
competitors/NNS
in/IN
retail/JJ
banking/NN
and/CC
financial/JJ
services/NNS
,/,
they/PRP
argue/VBP
,/,
will/MD
be/VB
difficult/JJ
,/,
particularly/RB
if/IN
market/NN
conditions/NNS
turn/VBP
sour/JJ
./.
If/IN
that/DT
proves/VBZ
true/JJ
,/,
analysts/NNS
say/VBP
Banco/NNP
Exterior/NNP
could/MD
be/VB
a/DT
prime/JJ
partner/NN
--/:
or/CC
even/RB
a/DT
takeover/NN
target/NN
--/:
for/IN
either/CC
a/DT
Spanish/JJ
or/CC
foreign/JJ
bank/NN
seeking/VBG
to/TO
increase/VB
its/PRP$
market/NN
share/NN
after/IN
1992/CD
,/,
when/WRB
the/DT
European/NNP
Community/NNP
plans/VBZ
to/TO
dismantle/VB
financial/JJ
barriers/NNS
./.
With/IN
700/CD
branches/NNS
in/IN
Spain/NNP
and/CC
12/CD
banking/NN
subsidiaries/NNS
,/,
five/CD
branches/NNS
and/CC
12/CD
representative/JJ
offices/NNS
abroad/RB
,/,
the/DT
Banco/NNP
Exterior/NNP
group/NN
has/VBZ
a/DT
lot/NN
to/TO
offer/VB
a/DT
potential/JJ
suitor/NN
./.
Mr./NNP
Luzon/NNP
and/CC
his/PRP$
team/NN
,/,
however/RB
,/,
say/VBP
they/PRP
are/VBP
n't/RB
interested/JJ
in/IN
a/DT
merger/NN
./.
Instead/RB
,/,
they/PRP
are/VBP
working/VBG
to/TO
transform/VB
Banco/NNP
Exterior/NNP
into/IN
an/DT
efficient/JJ
bank/NN
by/IN
the/DT
end/NN
of/IN
1992/CD
./.
``/``
I/PRP
want/VBP
this/DT
to/TO
be/VB
a/DT
model/NN
of/IN
the/DT
way/NN
a/DT
public-owned/JJ
company/NN
should/MD
be/VB
run/VBN
,/,
''/''
Mr./NNP
Luzon/NNP
says/VBZ
./.
Banco/NNP
Exterior/NNP
was/VBD
created/VBN
in/IN
1929/CD
to/TO
provide/VB
subsidized/JJ
credits/NNS
for/IN
Spanish/JJ
exports/NNS
./.
The/DT
market/NN
for/IN
export/NN
financing/NN
was/VBD
liberalized/VBN
in/IN
the/DT
mid-1980s/NNS
,/,
however/RB
,/,
forcing/VBG
the/DT
bank/NN
to/TO
face/NN
competition/NN
./.
At/IN
the/DT
same/JJ
time/NN
,/,
many/JJ
of/IN
Spain/NNP
's/POS
traditional/JJ
export/NN
markets/NNS
in/IN
Latin/NNP
America/NNP
and/CC
other/JJ
developing/VBG
areas/NNS
faced/VBD
a/DT
sharp/JJ
decline/NN
in/IN
economic/JJ
growth/NN
./.
As/IN
a/DT
result/NN
,/,
the/DT
volume/NN
of/IN
Banco/NNP
Exterior/NNP
's/POS
export/NN
credit/NN
portfolio/NN
plunged/VBD
from/IN
824/CD
billion/CD
pesatas/NNS
$/$
7.04/CD
billion/CD
Dec./NNP
31/CD
,/,
1986/CD
,/,
to/TO
its/PRP$
current/JJ
522/CD
billion/CD
pesetas/NNS
./.
The/DT
other/JJ
two/CD
main/JJ
pillars/NNS
of/IN
Banco/NNP
Exterior/NNP
's/POS
traditional/JJ
business/NN
--/:
wholesale/JJ
banking/NN
and/CC
foreign/JJ
currency/NN
trading/NN
--/:
also/RB
began/VBD
to/TO
crumble/VB
under/IN
the/DT
weight/NN
of/IN
heavy/JJ
competition/NN
and/CC
changing/VBG
client/NN
needs/NNS
./.
The/DT
bank/NN
was/VBD
hamstrung/JJ
in/IN
its/PRP$
efforts/NNS
to/TO
face/VB
the/DT
challenges/NNS
of/IN
a/DT
changing/VBG
market/NN
by/IN
its/PRP$
links/NNS
to/TO
the/DT
government/NN
,/,
analysts/NNS
say/VBP
./.
Until/IN
Mr./NNP
Luzon/NNP
took/VBD
the/DT
helm/NN
last/JJ
November/NNP
,/,
Banco/NNP
Exterior/NNP
was/VBD
run/VBN
by/IN
politicians/NNS
who/WP
lacked/VBD
either/CC
the/DT
skills/NNS
or/CC
the/DT
will/NN
to/TO
introduce/VB
innovative/JJ
changes/NNS
./.
But/CC
Mr./NNP
Luzon/NNP
has/VBZ
moved/VBN
swiftly/RB
to/TO
streamline/VB
bureaucracy/NN
,/,
cut/VB
costs/NNS
,/,
increase/VB
capital/NN
and/CC
build/VB
up/RP
new/JJ
areas/NNS
of/IN
business/NN
./.
``/``
We/PRP
've/VBP
got/VBN
a/DT
lot/NN
to/TO
do/VB
,/,
''/''
he/PRP
acknowledged/VBD
./.
``/``
We/PRP
've/VBP
got/VBN
to/TO
move/VB
quickly/RB
./.
''/''
In/IN
Mr./NNP
Luzon/NNP
's/POS
first/JJ
year/NN
,/,
the/DT
bank/NN
eliminated/VBD
800/CD
jobs/NNS
./.
Now/RB
it/PRP
says/VBZ
it/PRP
'll/MD
trim/VB
another/DT
1,200/CD
jobs/NNS
over/IN
the/DT
next/JJ
three/CD
to/TO
four/CD
years/NNS
./.
The/DT
bank/NN
employs/VBZ
8,000/CD
people/NNS
in/IN
Spain/NNP
and/CC
2,000/CD
abroad/RB
./.
To/TO
strengthen/VB
its/PRP$
capital/NN
base/NN
,/,
Banco/NNP
Exterior/NNP
this/DT
year/NN
issued/VBD
$/$
105/CD
million/CD
in/IN
subordinated/JJ
debt/NN
,/,
launched/VBD
two/CD
rights/NNS
issues/NNS
and/CC
sold/VBD
stock/NN
held/VBN
in/IN
its/PRP$
treasury/NN
to/TO
small/JJ
investors/NNS
./.
The/DT
bank/NN
is/VBZ
now/RB
aggressively/RB
marketing/VBG
retail/JJ
services/NNS
at/IN
its/PRP$
domestic/JJ
branches/NNS
./.
Last/JJ
year/NN
's/POS
drop/NN
in/IN
export/NN
credit/NN
was/VBD
partially/RB
offset/VBN
by/IN
a/DT
15/CD
%/NN
surge/NN
in/IN
lending/NN
to/TO
individuals/NNS
and/CC
small/JJ
and/CC
medium-sized/JJ
companies/NNS
./.
Though/NNP
Spain/NNP
has/VBZ
an/DT
excess/NN
of/IN
banks/NNS
,/,
analysts/NNS
say/VBP
the/DT
country/NN
still/RB
has/VBZ
one/CD
of/IN
the/DT
most/RBS
profitable/JJ
markets/NNS
in/IN
Europe/NNP
,/,
which/WDT
will/MD
aid/VB
Banco/NNP
Exterior/NNP
with/IN
the/DT
tough/JJ
tasks/NNS
it/PRP
faces/VBZ
ahead/RB
./.
Expansion/NN
plans/NNS
also/RB
include/VBP
acquisitions/NNS
in/IN
growing/VBG
foreign/JJ
markets/NNS
./.
The/DT
bank/NN
says/VBZ
it/PRP
's/VBZ
interested/VBN
in/IN
purchasing/VBG
banks/NNS
in/IN
Morocco/NNP
,/,
Portugal/NNP
and/CC
Puerto/NNP
Rico/NNP
./.
But/CC
the/DT
bank/NN
's/POS
retail/JJ
activities/NNS
in/IN
Latin/NNP
America/NNP
are/VBP
likely/JJ
to/TO
be/VB
cut/VBN
back/RP
./.
Banco/NNP
Exterior/NNP
was/VBD
one/CD
of/IN
the/DT
last/JJ
banks/NNS
to/TO
create/VB
a/DT
brokerage/NN
house/NN
before/IN
the/DT
four/CD
Spanish/JJ
stock/NN
exchanges/NNS
underwent/VBD
sweeping/JJ
changes/NNS
in/IN
July/NNP
./.
The/DT
late/JJ
start/NN
may/MD
be/VB
a/DT
handicap/NN
for/IN
the/DT
bank/NN
as/IN
Spain/NNP
continues/VBZ
to/TO
open/VB
up/RP
its/PRP$
market/NN
to/TO
foreign/JJ
competition/NN
./.
But/CC
Mr./NNP
Luzon/NNP
contends/VBZ
that/IN
the/DT
experienced/JJ
team/NN
he/PRP
brought/VBD
with/IN
him/PRP
from/IN
Banco/NNP
Bilbao/NNP
Vizcaya/NNP
,/,
where/WRB
he/PRP
was/VBD
formerly/RB
director/NN
general/JJ
,/,
will/MD
whip/VB
the/DT
bank/NN
's/POS
capital/NN
market/NN
division/NN
into/IN
shape/NN
by/IN
the/DT
end/NN
of/IN
1992/CD
./.
The/DT
bank/NN
also/RB
says/VBZ
it/PRP
'll/MD
use/VB
its/PRP$
international/JJ
network/NN
to/TO
channel/VB
investment/NN
from/IN
London/NNP
,/,
Frankfurt/NNP
,/,
Zurich/NNP
and/CC
Paris/NNP
into/IN
the/DT
Spanish/JJ
stock/NN
exchanges/NNS
./.
General/NNP
Motors/NNP
Corp./NNP
's/POS
general/JJ
counsel/NN
hopes/VBZ
to/TO
cut/VB
the/DT
number/NN
of/IN
outside/JJ
law/NN
firms/NNS
the/DT
auto/NN
maker/NN
uses/VBZ
from/IN
about/RB
700/CD
to/TO
200/CD
within/IN
two/CD
years/NNS
./.
Harry/NNP
J./NNP
Pearce/NNP
,/,
named/VBN
general/JJ
counsel/NN
in/IN
May/NNP
1987/CD
,/,
says/VBZ
the/DT
reduction/NN
is/VBZ
a/DT
cost-cutting/JJ
measure/NN
and/CC
an/DT
effort/NN
to/TO
let/VB
the/DT
No./NN
1/CD
auto/NN
maker/NN
's/POS
134-lawyer/JJ
in-house/JJ
legal/JJ
department/NN
take/VB
on/IN
matters/NNS
it/PRP
is/VBZ
better/RBR
equipped/JJ
and/CC
trained/JJ
to/TO
handle/VB
./.
GM/NNP
trimmed/VBD
about/RB
40/CD
firms/NNS
from/IN
its/PRP$
approved/JJ
local/JJ
counsel/NN
list/NN
,/,
Mr./NNP
Pearce/NNP
says/VBZ
./.
The/DT
move/NN
is/VBZ
consistent/JJ
with/IN
a/DT
trend/NN
for/IN
corporate/JJ
legal/JJ
staffs/NNS
to/TO
do/VB
more/JJR
work/NN
in-house/RB
,/,
instead/RB
of/IN
farming/VBG
it/PRP
out/RP
to/TO
law/NN
firms/NNS
./.
Mr./NNP
Pearce/NNP
set/VBD
up/RP
GM/NNP
's/POS
first/JJ
in-house/JJ
litigation/NN
group/NN
in/IN
May/NNP
with/IN
four/CD
lawyers/NNS
,/,
all/DT
former/JJ
assistant/JJ
U.S./NNP
attorneys/NNS
with/IN
extensive/JJ
trial/NN
experience/NN
./.
He/PRP
intends/VBZ
to/TO
add/VB
to/TO
the/DT
litigation/NN
staff/NN
./.
Among/IN
the/DT
types/NNS
of/IN
cases/NNS
the/DT
in-house/JJ
litigators/NNS
handle/VBP
are/VBP
disputes/NNS
involving/VBG
companies/NNS
doing/VBG
business/NN
with/IN
GM/NNP
and/CC
product-related/JJ
actions/NNS
,/,
including/VBG
one/CD
in/IN
which/WDT
a/DT
driver/NN
is/VBZ
suing/VBG
GM/NNP
for/IN
damages/NNS
resulting/VBG
from/IN
an/DT
accident/NN
./.
Mr./NNP
Pearce/NNP
has/VBZ
also/RB
encouraged/VBN
his/PRP$
staff/NN
to/TO
work/NN
more/RBR
closely/RB
with/IN
GM/NNP
's/POS
technical/JJ
staffs/NNS
to/TO
help/VB
prevent/VB
future/JJ
litigation/NN
./.
GM/NNP
lawyers/NNS
have/VBP
been/VBN
working/VBG
with/IN
technicians/NNS
to/TO
develop/VB
more/RBR
uniform/JJ
welding/NN
procedures/NNS
--/:
the/DT
way/NN
a/DT
vehicle/NN
is/VBZ
welded/VBN
has/VBZ
a/DT
lot/NN
to/TO
do/VB
with/IN
its/PRP$
durability/NN
./.
The/DT
lawyers/NNS
also/RB
monitor/VBP
suits/NNS
to/TO
identify/VB
specific/JJ
automobile/NN
parts/NNS
that/WDT
cause/VBP
the/DT
biggest/JJS
legal/JJ
problems/NNS
./.
Mr./NNP
Pearce/NNP
says/VBZ
law/NN
firms/NNS
with/IN
the/DT
best/JJS
chance/NN
of/IN
retaining/VBG
or/CC
winning/VBG
business/NN
with/IN
GM/NNP
will/MD
be/VB
those/DT
providing/VBG
the/DT
highest-quality/JJ
service/NN
at/IN
the/DT
best/JJS
cost/NN
--/:
echoing/VBG
similar/JJ
directives/NNS
from/IN
GM/NNP
's/POS
auto/NN
operations/NNS
to/TO
suppliers/NNS
./.
This/DT
does/VBZ
n't/RB
necessarily/RB
mean/VB
larger/JJR
firms/NNS
have/VBP
an/DT
advantage/NN
;/:
Mr./NNP
Pearce/NNP
said/VBD
GM/NNP
works/NNS
with/IN
a/DT
number/NN
of/IN
smaller/JJR
firms/NNS
it/PRP
regards/VBZ
highly/RB
./.
Mr./NNP
Pearce/NNP
has/VBZ
shaken/VBN
up/RP
GM/NNP
's/POS
legal/JJ
staff/NN
by/IN
eliminating/VBG
all/DT
titles/NNS
and/CC
establishing/VBG
several/JJ
new/JJ
functions/NNS
,/,
including/VBG
a/DT
special-projects/JJ
group/NN
that/WDT
has/VBZ
made/VBN
films/NNS
on/IN
safety/NN
and/CC
drunk/JJ
driving/NN
./.
FEDERAL/JJ
PROSECUTORS/NNS
are/VBP
concluding/VBG
fewer/JJR
criminal/JJ
cases/NNS
with/IN
trials/NNS
./.
That/DT
's/VBZ
a/DT
finding/NN
of/IN
a/DT
new/JJ
study/NN
of/IN
the/DT
Justice/NNP
Department/NNP
by/IN
researchers/NNS
at/IN
Syracuse/NNP
University/NNP
./.
David/NNP
Burnham/NNP
,/,
one/CD
of/IN
the/DT
authors/NNS
,/,
says/VBZ
fewer/JJR
trials/NNS
probably/RB
means/VBZ
a/DT
growing/VBG
number/NN
of/IN
plea/NN
bargains/NNS
./.
In/IN
1980/CD
,/,
18/CD
%/NN
of/IN
federal/JJ
prosecutions/NNS
concluded/VBD
at/IN
trial/NN
;/:
in/IN
1987/CD
,/,
only/RB
9/CD
%/NN
did/VBD
./.
The/DT
study/NN
covered/VBD
11/CD
major/JJ
U.S./NNP
attorneys/NNS
'/POS
offices/NNS
--/:
including/VBG
those/DT
in/IN
Manhattan/NNP
and/CC
Brooklyn/NNP
,/,
N.Y./NNP
,/,
and/CC
New/NNP
Jersey/NNP
--/:
from/IN
1980/CD
to/TO
1987/CD
./.
The/DT
Justice/NNP
Department/NNP
rejected/VBD
the/DT
implication/NN
that/IN
its/PRP$
prosecutors/NNS
are/VBP
currently/RB
more/RBR
willing/JJ
to/TO
plea/NN
bargain/NN
./.
``/``
Our/PRP$
felony/NN
caseloads/NNS
have/VB
been/VBN
consistent/JJ
for/IN
20/CD
years/NNS
,/,
''/''
with/IN
about/RB
15/CD
%/NN
of/IN
all/DT
prosecutions/NNS
going/VBG
to/TO
trial/NN
,/,
a/DT
department/NN
spokeswoman/NN
said/VBD
./.
The/DT
discrepancy/NN
is/VBZ
somewhat/RB
perplexing/JJ
in/IN
that/IN
the/DT
Syracuse/NNP
researchers/NNS
said/VBD
they/PRP
based/VBD
their/PRP$
conclusions/NNS
on/IN
government/NN
statistics/NNS
./.
``/``
One/CD
possible/JJ
explanation/NN
for/IN
this/DT
decline/NN
''/''
in/IN
taking/VBG
cases/NNS
to/TO
trial/NN
,/,
says/VBZ
Mr./NNP
Burnham/NNP
,/,
``/``
is/VBZ
that/IN
the/DT
number/NN
of/IN
defendants/NNS
being/VBG
charged/VBN
with/IN
crimes/NNS
by/IN
all/DT
U.S./NNP
attorneys/NNS
has/VBZ
substantially/RB
increased/VBN
./.
''/''
In/IN
1980/CD
,/,
the/DT
study/NN
says/VBZ
,/,
prosecutors/NNS
surveyed/VBN
filed/VBD
charges/NNS
against/IN
25/CD
defendants/NNS
for/IN
each/DT
100,000/CD
people/NNS
aged/VBN
18/CD
years/NNS
and/CC
older/JJR
./.
In/IN
1987/CD
,/,
prosecutors/NNS
filed/VBD
against/IN
35/CD
defendants/NNS
for/IN
every/DT
100,000/CD
adults/NNS
./.
Another/DT
finding/NN
from/IN
the/DT
study/NN
:/:
Prosecutors/NNS
set/VBP
significantly/RB
different/JJ
priorities/NNS
./.
The/DT
Manhattan/NNP
U.S./NNP
attorney/NN
's/POS
office/NN
stressed/VBD
criminal/JJ
cases/NNS
from/IN
1980/CD
to/TO
1987/CD
,/,
averaging/VBG
43/CD
for/IN
every/DT
100,000/CD
adults/NNS
./.
But/CC
the/DT
New/NNP
Jersey/NNP
U.S./NNP
attorney/NN
averaged/VBD
16/CD
./.
On/IN
the/DT
civil/JJ
side/NN
,/,
the/DT
Manhattan/NNP
prosecutor/NN
filed/VBD
an/DT
average/NN
of/IN
only/RB
11/CD
cases/NNS
for/IN
every/DT
100,000/CD
adults/NNS
during/IN
the/DT
same/JJ
period/NN
;/:
the/DT
San/NNP
Francisco/NNP
U.S./NNP
attorney/NN
averaged/VBD
79/CD
./.
The/DT
study/NN
is/VBZ
to/TO
provide/VB
reporters/NNS
,/,
academic/JJ
experts/NNS
and/CC
others/NNS
raw/JJ
data/NN
on/IN
which/WDT
to/TO
base/VB
further/JJ
inquiries/NNS
./.
IMELDA/NNP
MARCOS/NNP
asks/VBZ
for/IN
dismissal/NN
,/,
says/VBZ
she/PRP
was/VBD
kidnapped/VBN
./.
The/DT
former/JJ
first/JJ
lady/NN
of/IN
the/DT
Philippines/NNP
,/,
asked/VBD
a/DT
federal/JJ
court/NN
in/IN
Manhattan/NNP
to/TO
dismiss/VB
an/DT
indictment/NN
against/IN
her/PRP
,/,
claiming/VBG
among/IN
other/JJ
things/NNS
,/,
that/IN
she/PRP
was/VBD
abducted/NN
from/IN
her/PRP$
homeland/NN
./.
Mrs./NNP
Marcos/NNP
and/CC
her/PRP$
late/JJ
husband/NN
,/,
former/JJ
Philippines/NNPS
President/NNP
Ferdinand/NNP
Marcos/NNP
,/,
were/VBD
charged/VBN
with/IN
embezzling/VBG
more/JJR
than/IN
$/$
100/CD
million/CD
from/IN
that/DT
country/NN
and/CC
then/RB
fraudulently/RB
concealing/VBG
much/JJ
of/IN
the/DT
money/NN
through/IN
purchases/NNS
of/IN
prime/JJ
real/JJ
estate/NN
in/IN
Manhattan/NNP
./.
Mrs./NNP
Marcos/NNP
's/POS
attorneys/NNS
asked/VBD
federal/JJ
Judge/NNP
John/NNP
F./NNP
Keenan/NNP
to/TO
give/VB
them/PRP
access/NN
to/TO
all/DT
U.S./NNP
documents/NNS
about/IN
her/PRP$
alleged/JJ
abduction/NN
./.
The/DT
U.S./NNP
attorney/NN
's/POS
office/NN
,/,
in/IN
documents/NNS
it/PRP
filed/VBD
in/IN
response/NN
,/,
said/VBD
Mrs./NNP
Marcos/NNP
was/VBD
making/VBG
the/DT
``/``
fanciful/JJ
--/:
and/CC
factually/RB
unsupported/JJ
--/:
claim/NN
that/IN
she/PRP
was/VBD
kidnapped/VBN
into/IN
this/DT
country/NN
''/''
in/IN
order/NN
to/TO
obtain/VB
classified/JJ
material/NN
in/IN
the/DT
case/NN
./.
The/DT
office/NN
also/RB
said/VBD
Mrs./NNP
Marcos/NNP
and/CC
her/PRP$
husband/NN
were/VBD
n't/RB
brought/VBN
to/TO
the/DT
U.S./NNP
against/IN
their/PRP$
will/NN
after/IN
Mr./NNP
Marcos/NNP
was/VBD
ousted/VBN
as/IN
president/NN
./.
The/DT
prosecutor/NN
quoted/VBD
statements/NNS
from/IN
the/DT
Marcoses/NNPS
in/IN
which/WDT
they/PRP
said/VBD
they/PRP
were/VBD
in/IN
this/DT
country/NN
at/IN
the/DT
invitation/NN
of/IN
President/NNP
Reagan/NNP
and/CC
that/IN
they/PRP
were/VBD
enjoying/VBG
the/DT
hospitality/NN
of/IN
the/DT
U.S/NNP
./.
Lawyers/NNP
for/IN
Mrs./NNP
Marcos/NNP
say/VBP
that/IN
because/IN
she/PRP
was/VBD
taken/VBN
to/TO
the/DT
U.S./NNP
against/IN
her/PRP$
wishes/NNS
,/,
the/DT
federal/JJ
court/NN
lacks/VBZ
jurisdiction/NN
in/IN
the/DT
case/NN
./.
THE/DT
FEDERAL/JJ
COURT/NN
of/IN
appeals/NNS
in/IN
Manhattan/NNP
ruled/VBD
that/IN
the/DT
dismissal/NN
of/IN
a/DT
1980/CD
indictment/NN
against/IN
former/JJ
Bank/NNP
of/IN
Crete/NNP
owner/NN
George/NNP
Koskotas/NNP
should/MD
be/VB
reconsidered/VBN
./.
The/DT
indictment/NN
,/,
which/WDT
was/VBD
sealed/VBN
and/CC
apparently/RB
forgotten/VBN
by/IN
investigators/NNS
until/IN
1987/CD
,/,
charges/VBZ
Mr./NNP
Koskotas/NNP
and/CC
three/CD
others/NNS
with/IN
tax/NN
fraud/NN
and/CC
other/JJ
violations/NNS
./.
He/PRP
made/VBD
numerous/JJ
trips/NNS
to/TO
the/DT
U.S./NNP
in/IN
the/DT
early/JJ
1980s/CD
,/,
but/CC
was/VBD
n't/RB
arrested/VBN
until/IN
1987/CD
when/WRB
he/PRP
showed/VBD
up/RP
as/IN
a/DT
guest/NN
of/IN
then-Vice/NNP
President/NNP
George/NNP
Bush/NNP
at/IN
a/DT
government/NN
function/NN
./.
A/DT
federal/JJ
judge/NN
in/IN
Manhattan/NNP
threw/VBD
out/RP
the/DT
indictment/NN
,/,
finding/VBG
that/IN
the/DT
seven-year/JJ
delay/NN
violated/VBD
the/DT
defendant/NN
's/POS
constitutional/JJ
right/NN
to/TO
a/DT
speedy/JJ
trial/NN
./.
The/DT
appeals/NNS
court/NN
,/,
however/RB
,/,
said/VBD
the/DT
judge/NN
did/VBD
n't/RB
adequately/RB
consider/VB
whether/IN
the/DT
delay/NN
would/MD
actually/RB
hurt/VB
the/DT
chances/NNS
of/IN
a/DT
fair/JJ
trial/NN
./.
Mr./NNP
Koskotas/NNP
is/VBZ
fighting/VBG
extradition/NN
proceedings/NNS
that/WDT
would/MD
return/VB
him/PRP
to/TO
Greece/NNP
,/,
where/WRB
he/PRP
is/VBZ
charged/VBN
with/IN
embezzling/VBG
more/JJR
than/IN
$/$
250/CD
million/CD
from/IN
the/DT
Bank/NNP
of/IN
Crete/NNP
./.
His/PRP$
attorney/NN
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
PRO/FW
BONO/FW
VOLUNTARISM/NN
:/:
In/IN
an/DT
effort/NN
to/TO
stave/VB
off/RP
a/DT
plan/NN
that/WDT
would/MD
require/VB
all/DT
lawyers/NNS
in/IN
New/NNP
York/NNP
state/NN
to/TO
provide/VB
twenty/CD
hours/NNS
of/IN
free/JJ
legal/JJ
aid/NN
a/DT
year/NN
,/,
the/DT
state/NN
bar/NN
recommended/VBD
an/DT
alternative/JJ
program/NN
to/TO
increase/VB
voluntary/JJ
participation/NN
in/IN
pro/FW
bono/FW
programs/NNS
./.
The/DT
state/NN
bar/NN
association/NN
's/POS
policy/NN
making/NN
body/NN
,/,
the/DT
House/NNP
of/IN
Delegate/NNP
,/,
voted/VBD
Saturday/NNP
to/TO
ask/VB
Chief/NNP
Judge/NNP
Sol/NNP
Wachtler/NNP
to/TO
give/VB
the/DT
bar/NN
's/POS
voluntary/JJ
program/NN
three/CD
years/NNS
to/TO
prove/VB
its/PRP$
effectiveness/NN
before/IN
considering/VBG
mandatory/JJ
pro/FW
bono/FW
./.
``/``
We/PRP
believe/VBP
our/PRP$
suggested/JJ
plan/NN
is/VBZ
more/RBR
likely/JJ
to/TO
improve/VB
the/DT
availability/NN
of/IN
quality/JJ
legal/JJ
service/NN
to/TO
the/DT
poor/JJ
than/IN
is/VBZ
the/DT
proposed/JJ
mandatory/JJ
pro/FW
bono/FW
plan/NN
and/CC
will/MD
achieve/VB
that/DT
objective/NN
without/IN
the/DT
divisiveness/NN
,/,
distraction/NN
,/,
administrative/JJ
burdens/NNS
and/CC
possible/JJ
failure/NN
that/IN
we/PRP
fear/VBP
would/MD
accompany/VB
an/DT
attempt/NN
to/TO
impose/VB
a/DT
mandatory/JJ
plan/NN
,/,
''/''
said/VBD
Justin/NNP
L./NNP
Vigdor/NNP
of/IN
Rochester/NNP
,/,
who/WP
headed/VBD
the/DT
bar/NN
's/POS
pro/FW
bono/FW
study/NN
committee/NN
./.
DALLAS/NNP
AND/CC
HOUSTON/NNP
law/NN
firms/NNS
merge/VBP
:/:
Jackson/NNP
&/CC
Walker/NNP
,/,
a/DT
130-lawyer/JJ
firm/NN
in/IN
Dallas/NNP
and/CC
Datson/NNP
&/CC
Scofield/NNP
,/,
a/DT
70-lawyer/JJ
firm/NN
in/IN
Houston/NNP
said/VBD
they/PRP
have/VBP
agreed/VBN
in/IN
principle/NN
to/TO
merge/VB
./.
The/DT
consolidated/JJ
firm/NN
,/,
which/WDT
would/MD
rank/VB
among/IN
the/DT
10/CD
largest/JJS
in/IN
Texas/NNP
,/,
would/MD
operate/VB
under/IN
the/DT
name/NN
Jackson/NNP
&/CC
Walker/NNP
./.
The/DT
merger/NN
must/MD
be/VB
formally/RB
approved/VBN
by/IN
the/DT
partners/NNS
of/IN
both/DT
firms/NNS
but/CC
is/VBZ
expected/VBN
to/TO
be/VB
completed/VBN
by/IN
year/NN
end/NN
./.
Jackson/NNP
&/CC
Walker/NNP
has/VBZ
an/DT
office/NN
in/IN
Fort/NNP
Worth/NNP
,/,
Texas/NNP
,/,
and/CC
Dotson/NNP
&/CC
Scofield/NNP
has/VBZ
an/DT
office/NN
in/IN
New/NNP
Orleans/NNP
./.
PILING/VBG
ON/RP
?/.
Piggybacking/VBG
on/IN
government/NN
assertions/NNS
that/IN
General/NNP
Electric/NNP
Co./NNP
may/MD
have/VB
covered/VBN
up/RP
fraudulent/JJ
billings/NNS
to/TO
the/DT
Pentagon/NNP
,/,
two/CD
shareholders/NNS
have/VBP
filed/VBN
a/DT
civil/JJ
racketeering/NN
suit/NN
against/IN
the/DT
company/NN
./.
The/DT
suit/NN
was/VBD
filed/VBN
by/IN
plaintiffs/NNS
'/POS
securities/NNS
lawyer/NN
Richard/NNP
D./NNP
Greenfield/NNP
in/IN
U.S./NNP
District/NNP
Court/NNP
in/IN
Philadelphia/NNP
./.
He/PRP
seeks/VBZ
damages/NNS
from/IN
the/DT
company/NN
's/POS
15/CD
directors/NNS
on/IN
grounds/NNS
that/IN
they/PRP
either/DT
``/``
participated/VBD
in/IN
or/CC
condoned/VBD
the/DT
illegal/JJ
acts/NNS
.../:
or/CC
utterly/RB
failed/VBD
to/TO
carry/VB
out/RP
their/PRP$
duties/NNS
as/IN
directors/NNS
./.
''/''
GE/NNP
is/VBZ
defending/VBG
itself/PRP
against/IN
government/NN
criminal/JJ
charges/NNS
of/IN
fraud/NN
and/CC
false/JJ
claims/NNS
in/IN
connection/NN
with/IN
a/DT
logistics-computer/NN
contract/NN
for/IN
the/DT
Army/NNP
./.
The/DT
trial/NN
begins/VBZ
today/NN
in/IN
federal/JJ
court/NN
in/IN
Philadelphia/NNP
./.
The/DT
government/NN
's/POS
assertions/NNS
of/IN
the/DT
cover-up/NN
were/VBD
made/VBN
in/IN
last/JJ
minute/JJ
pretrial/JJ
motions/NNS
./.
GE/NNP
,/,
which/WDT
vehemently/RB
denies/VBZ
the/DT
government/NN
's/POS
allegations/NNS
,/,
denounced/VBD
Mr./NNP
Greenfield/NNP
's/POS
suit/NN
./.
``/``
It/PRP
is/VBZ
a/DT
cheap-shot/JJ
suit/NN
--/:
procedurally/RB
defective/JJ
and/CC
thoroughly/RB
fallacious/JJ
--/:
which/WDT
was/VBD
hurriedly/RB
filed/VBN
by/IN
a/DT
contingency-fee/JJ
lawyer/NN
as/IN
a/DT
result/NN
of/IN
newspaper/NN
reports/NNS
,/,
''/''
said/VBD
a/DT
GE/NNP
spokeswoman/NN
./.
She/PRP
added/VBD
that/IN
the/DT
company/NN
was/VBD
considering/VBG
bringing/VBG
sanctions/NNS
against/IN
Mr./NNP
Greenfield/NNP
for/IN
making/VBG
``/``
grossly/RB
inaccurate/JJ
and/CC
unsupported/JJ
allegations/NNS
./.
''/''
The/DT
head/NN
of/IN
the/DT
nation/NN
's/POS
largest/JJS
car-dealers/NNS
group/NN
is/VBZ
telling/VBG
dealers/NNS
to/TO
``/``
just/RB
say/VB
no/UH
''/''
when/WRB
auto/NN
makers/NNS
pressure/VBP
them/PRP
to/TO
stockpile/VB
cars/NNS
on/IN
their/PRP$
lots/NNS
./.
In/IN
an/DT
open/JJ
letter/NN
that/WDT
will/MD
run/VB
today/NN
in/IN
the/DT
trade/NN
journal/NN
Automotive/NNP
News/NNP
,/,
Ron/NNP
Tonkin/NNP
,/,
president/NN
of/IN
the/DT
National/NNP
Car/NNP
Dealers/NNPS
Association/NNP
,/,
says/VBZ
dealers/NNS
should/MD
cut/VB
their/PRP$
inventories/NNS
to/TO
no/DT
more/JJR
than/IN
half/PDT
the/DT
level/NN
traditionally/RB
considered/VBN
desirable/JJ
./.
Mr./NNP
Tonkin/NNP
,/,
who/WP
has/VBZ
been/VBN
feuding/VBG
with/IN
the/DT
Big/NNP
Three/NNP
since/IN
he/PRP
took/VBD
office/NN
earlier/RBR
this/DT
year/NN
,/,
said/VBD
that/IN
with/IN
half/NN
of/IN
the/DT
nation/NN
's/POS
dealers/NNS
losing/VBG
money/NN
or/CC
breaking/VBG
even/RB
,/,
it/PRP
was/VBD
time/NN
for/IN
``/``
emergency/NN
action/NN
./.
''/''
U.S./NNP
car/NN
dealers/NNS
had/VBD
an/DT
average/NN
of/IN
59/CD
days/NNS
'/POS
supply/NN
of/IN
cars/NNS
in/IN
their/PRP$
lots/NNS
at/IN
the/DT
end/NN
of/IN
September/NNP
,/,
according/VBG
to/TO
Ward/NNP
's/POS
Automotive/NNP
Reports/NNPS
./.
But/CC
Mr./NNP
Tonkin/NNP
said/VBD
dealers/NNS
should/MD
slash/VB
stocks/NNS
to/TO
between/IN
15/CD
and/CC
30/CD
days/NNS
to/TO
reduce/VB
the/DT
costs/NNS
of/IN
financing/VBG
inventory/NN
./.
His/PRP$
message/NN
is/VBZ
getting/VBG
a/DT
chilly/JJ
reception/NN
in/IN
Detroit/NNP
,/,
where/WRB
the/DT
Big/NNP
Three/NNP
auto/NN
makers/NNS
are/VBP
already/RB
being/VBG
forced/VBN
to/TO
close/VB
plants/NNS
because/IN
of/IN
soft/JJ
sales/NNS
and/CC
reduced/JJ
dealer/NN
orders/NNS
./.
Even/RB
before/IN
Mr./NNP
Tonkin/NNP
's/POS
broadside/NN
,/,
some/DT
large/JJ
dealers/NNS
said/VBD
they/PRP
were/VBD
cutting/VBG
inventories/NNS
./.
Ford/NNP
Motor/NNP
Co./NNP
and/CC
Chrysler/NNP
Corp./NNP
representatives/NNS
criticized/VBD
Mr./NNP
Tonkin/NNP
's/POS
plan/NN
as/IN
unworkable/JJ
./.
It/PRP
``/``
is/VBZ
going/VBG
to/TO
sound/VB
neat/JJ
to/TO
the/DT
dealer/NN
except/IN
when/WRB
his/PRP$
15-day/JJ
car/NN
supply/NN
does/VBZ
n't/RB
include/VB
the/DT
bright/JJ
red/JJ
one/NN
that/IN
the/DT
lady/NN
wants/VBZ
to/TO
buy/VB
and/CC
she/PRP
goes/VBZ
up/IN
the/DT
street/NN
to/TO
buy/VB
one/CD
,/,
''/''
a/DT
Chrysler/NNP
spokesman/NN
said/VBD
./.
Southern/NNP
Co./NNP
's/POS
Gulf/NNP
Power/NNP
Co./NNP
unit/NN
may/MD
plead/VB
guilty/JJ
this/DT
week/NN
to/TO
charges/NNS
that/IN
it/PRP
illegally/RB
steered/VBD
company/NN
money/NN
to/TO
politicians/NNS
through/IN
outside/JJ
vendors/NNS
,/,
according/VBG
to/TO
individuals/NNS
close/RB
to/TO
an/DT
investigation/NN
of/IN
the/DT
utility/NN
holding/VBG
company/NN
./.
The/DT
tentative/NN
settlement/NN
between/IN
Gulf/NNP
Power/NNP
,/,
a/DT
Pensacola/NNP
,/,
Fla./NNP
,/,
electric/JJ
company/NN
,/,
and/CC
federal/JJ
prosecutors/NNS
would/MD
mark/VB
the/DT
end/NN
of/IN
one/CD
part/NN
of/IN
a/DT
wide-ranging/JJ
inquiry/NN
of/IN
Southern/NNP
Co./NNP
in/IN
the/DT
past/JJ
year/NN
./.
A/DT
grand/JJ
jury/NN
has/VBZ
been/VBN
investigating/VBG
whether/IN
officials/NNS
at/IN
Southern/NNP
Co./NNP
conspired/VBD
to/TO
cover/VB
up/RP
their/PRP$
accounting/NN
for/IN
spare/JJ
parts/NNS
to/TO
evade/VB
federal/JJ
income/NN
taxes/NNS
./.
The/DT
grand/JJ
jury/NN
has/VBZ
also/RB
been/VBN
investigating/VBG
whether/IN
Gulf/NNP
Power/NNP
executives/NNS
violated/VBD
the/DT
federal/JJ
Utility/NNP
Holding/NNP
Company/NNP
Act/NNP
,/,
which/WDT
prohibits/VBZ
certain/JJ
utilities/NNS
from/IN
making/VBG
political/JJ
contributions/NNS
./.
The/DT
individuals/NNS
said/VBD
Gulf/NNP
Power/NNP
and/CC
federal/JJ
prosecutors/NNS
are/VBP
considering/VBG
a/DT
settlement/NN
under/IN
which/WDT
the/DT
company/NN
would/MD
plead/VB
guilty/JJ
to/TO
two/CD
felony/NN
charges/NNS
and/CC
pay/VB
fines/NNS
totaling/VBG
between/IN
$/$
500,000/CD
and/CC
$/$
1.5/CD
million/CD
./.
Under/IN
one/CD
count/NN
,/,
Gulf/NNP
Power/NNP
would/MD
plead/VB
guilty/JJ
to/TO
conspiring/VBG
to/TO
violate/VB
the/DT
Utility/NNP
Holding/NNP
Company/NNP
Act/NNP
./.
Under/IN
the/DT
second/JJ
count/NN
,/,
the/DT
company/NN
would/MD
plead/VB
guilty/JJ
to/TO
conspiring/VBG
to/TO
evade/VB
taxes/NNS
./.
The/DT
guilty/JJ
pleas/NNS
would/MD
be/VB
made/VBN
solely/RB
by/IN
Gulf/NNP
Power/NNP
,/,
the/DT
individuals/NNS
said/VBD
./.
No/DT
employee/NN
or/CC
vendor/NN
would/MD
be/VB
involved/VBN
./.
A/DT
spokesman/NN
for/IN
Southern/NNP
Co./NNP
would/MD
say/VB
only/RB
that/IN
discussions/NNS
are/VBP
continuing/VBG
between/IN
Gulf/NNP
Power/NNP
and/CC
federal/JJ
prosecutors/NNS
./.
``/``
We/PRP
have/VB
no/DT
further/JJ
developments/NNS
to/TO
report/VB
,/,
''/''
he/PRP
said/VBD
./.
Officials/NNS
at/IN
Gulf/NNP
Power/NNP
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
And/CC
prosecutors/NNS
declined/VBD
to/TO
comment/VB
./.
While/IN
Southern/NNP
Co./NNP
has/VBZ
been/VBN
reluctant/JJ
to/TO
discuss/VB
the/DT
grand/JJ
jury/NN
investigations/NNS
,/,
Edward/NNP
L./NNP
Addison/NNP
,/,
chief/JJ
executive/JJ
officer/NN
,/,
has/VBZ
said/VBD
the/DT
company/NN
is/VBZ
prepared/VBN
to/TO
defend/VB
its/PRP$
tax/NN
and/CC
acccounting/NN
practices/NNS
if/IN
any/DT
charges/NNS
are/VBP
brought/VBN
against/IN
it/PRP
./.
Morever/RB
,/,
Mr./NNP
Addison/NNP
has/VBZ
said/VBD
Southern/NNP
Co./NNP
and/CC
its/PRP$
units/NNS
do/VBP
n't/RB
condone/VB
illegal/JJ
political/JJ
contributions/NNS
./.
Neither/CC
Mr./NNP
Addison/NNP
nor/CC
any/DT
other/JJ
Southern/NNP
Co./NNP
official/NN
has/VBZ
been/VBN
charged/VBN
with/IN
any/DT
wrongdoing/NN
in/IN
connection/NN
with/IN
the/DT
current/JJ
inquiries/NNS
./.
The/DT
probe/NN
of/IN
Southern/NNP
Co./NNP
has/VBZ
attracted/VBN
considerable/JJ
attention/NN
this/DT
year/NN
because/IN
of/IN
several/JJ
events/NNS
that/WDT
have/VBP
befallen/VBN
the/DT
company/NN
,/,
including/VBG
the/DT
death/NN
of/IN
a/DT
Gulf/NNP
Power/NNP
executive/NN
in/IN
a/DT
plane/NN
crash/NN
and/CC
the/DT
disappearance/NN
of/IN
a/DT
company/NN
vendor/NN
who/WP
was/VBD
to/TO
be/VB
a/DT
key/JJ
grand/JJ
jury/NN
witness/NN
./.
Witnesses/NNS
have/VBP
said/VBN
the/DT
grand/JJ
jury/NN
has/VBZ
asked/VBN
numerous/JJ
questions/NNS
about/IN
Jacob/NNP
F./NNP
``/``
Jake/NN
''/''
Horton/NNP
,/,
the/DT
senior/JJ
vice/NN
president/NN
of/IN
Gulf/NNP
Power/NNP
who/WP
died/VBD
in/IN
the/DT
plane/NN
crash/NN
in/IN
April/NNP
./.
Mr./NNP
Horton/NNP
oversaw/VBD
Gulf/NNP
Power/NNP
's/POS
governmental-affairs/NNS
efforts/NNS
./.
On/IN
the/DT
morning/NN
of/IN
the/DT
crash/NN
,/,
he/PRP
had/VBD
been/VBN
put/VBN
on/IN
notice/NN
that/IN
an/DT
audit/NN
committee/NN
was/VBD
recommending/VBG
his/PRP$
dismissal/NN
because/IN
of/IN
invoicing/NN
irregularities/NNS
in/IN
a/DT
company/NN
audit/NN
./.
Investigators/NNS
have/VBP
been/VBN
trying/VBG
to/TO
determine/VB
whether/IN
the/DT
crash/NN
was/VBD
an/DT
accident/NN
,/,
sabotage/NN
or/CC
suicide/NN
./.
Gulf/NNP
Power/NNP
said/VBD
in/IN
May/NNP
that/IN
an/DT
internal/JJ
audit/NN
had/VBD
disclosed/VBN
that/IN
at/IN
least/JJS
one/CD
vendor/NN
had/VBD
used/VBN
false/JJ
invoices/NNS
to/TO
fund/VB
political/JJ
causes/NNS
./.
But/CC
the/DT
company/NN
said/VBD
the/DT
political/JJ
contributions/NNS
had/VBD
been/VBN
made/VBN
more/RBR
than/IN
five/CD
years/NNS
ago/RB
./.
Exxon/NNP
Corp./NNP
is/VBZ
resigning/VBG
from/IN
the/DT
National/NNP
Wildlife/NNP
Federation/NNP
's/POS
corporate/JJ
advisory/JJ
panel/NN
,/,
saying/VBG
the/DT
conservation/NN
group/NN
has/VBZ
been/VBN
unfairly/RB
critical/JJ
of/IN
the/DT
Exxon/NNP
Valdez/NNP
oil/NN
spill/NN
along/IN
the/DT
Alaskan/JJ
coast/NN
./.
The/DT
federation/NN
said/VBD
Friday/NNP
that/IN
it/PRP
regrets/VBZ
the/DT
resignation/NN
,/,
but/CC
issued/VBD
a/DT
stinging/JJ
response/NN
that/WDT
called/VBD
Exxon/NNP
a/DT
``/``
corporate/JJ
pariah/NN
''/''
that/WDT
should/MD
keep/VB
an/DT
open/JJ
dialogue/NN
with/IN
environmentalists/NNS
./.
The/DT
federation/NN
,/,
with/IN
5.8/CD
million/CD
members/NNS
nationwide/JJ
,/,
has/VBZ
been/VBN
one/CD
of/IN
the/DT
sharpest/JJS
critics/NNS
of/IN
Exxon/NNP
's/POS
handling/NN
of/IN
the/DT
11/CD
million/CD
gallon/NN
tanker/NN
spill/NN
and/CC
has/VBZ
accused/VBN
the/DT
company/NN
of/IN
repeatedly/RB
ignoring/VBG
requests/NNS
to/TO
meet/VB
and/CC
discuss/VB
it/PRP
./.
The/DT
March/NNP
24/CD
oil/NN
spill/VB
soiled/VBD
hundreds/NNS
of/IN
miles/NNS
of/IN
shoreline/NN
along/IN
Alaska/NNP
's/POS
southern/JJ
coast/NN
and/CC
wreaked/VBD
havoc/NN
with/IN
wildlife/NN
and/CC
the/DT
fishing/NN
industry/NN
./.
Exxon/NNP
's/POS
Exxon/NNP
USA/NNP
unit/NN
was/VBD
one/CD
of/IN
the/DT
charter/JJ
members/NNS
of/IN
the/DT
Corporate/NNP
Conservation/NNP
Council/NNP
,/,
a/DT
panel/NN
of/IN
executives/NNS
formed/VBN
in/IN
1982/CD
by/IN
the/DT
National/NNP
Wildlife/NNP
Federation/NNP
to/TO
foster/VB
``/``
frank/JJ
and/CC
open/JJ
discussions/NNS
''/''
between/IN
industry/NN
and/CC
the/DT
federation/NN
's/POS
leaders/NNS
./.
In/IN
a/DT
letter/NN
to/TO
the/DT
federation/NN
,/,
Raymond/NNP
Campion/NNP
,/,
Exxon/NNP
's/POS
environmental/JJ
coordinator/NN
,/,
said/VBD
:/:
``/``
Recent/JJ
public/JJ
actions/NNS
by/IN
you/PRP
regarding/VBG
the/DT
Valdez/NNP
oil/NN
spill/NN
have/VB
failed/VBN
to/TO
demonstrate/VB
any/DT
sense/NN
of/IN
objectivity/NN
or/CC
fairness/NN
./.
''/''
The/DT
federation/NN
was/VBD
among/IN
the/DT
plaintiffs/NNS
in/IN
a/DT
lawsuit/NN
filed/VBN
in/IN
August/NNP
against/IN
Exxon/NN
seeking/VBG
full/JJ
payment/NN
of/IN
environmental/JJ
recovery/NN
costs/NNS
from/IN
the/DT
spill/NN
./.
First/NNP
Tennessee/NNP
National/NNP
Corp./NNP
said/VBD
it/PRP
would/MD
take/VB
a/DT
$/$
4/CD
million/CD
charge/NN
in/IN
the/DT
fourth/JJ
quarter/NN
,/,
as/IN
a/DT
result/NN
of/IN
plans/NNS
to/TO
expand/VB
its/PRP$
systems/NNS
operation/NN
./.
The/DT
banking/NN
company/NN
said/VBD
it/PRP
reached/VBD
an/DT
agreement/NN
in/IN
principle/NN
with/IN
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
on/IN
a/DT
systems/NNS
operations/NNS
contract/NN
calling/VBG
for/IN
IBM/NNP
to/TO
operate/VB
First/NNP
Tennessee/NNP
's/POS
computer/NN
and/CC
telecommunications/NNS
functions/NNS
./.
Further/RB
,/,
under/IN
the/DT
agreement/NN
,/,
First/NNP
Tennesse/NNP
would/MD
continue/VB
to/TO
develop/VB
the/DT
software/NN
that/WDT
creates/VBZ
customer/NN
products/NNS
and/CC
sevices/NNS
./.
``/``
Because/IN
personal/JJ
computers/NNS
will/MD
soon/RB
be/VB
on/IN
the/DT
desks/NNS
of/IN
all/DT
of/IN
our/PRP$
tellers/NNS
,/,
and/CC
customer/NN
service/NN
and/CC
loan/NN
representatives/NNS
,/,
information/NN
will/MD
be/VB
instantly/RB
available/JJ
to/TO
help/VB
customers/NNS
with/IN
product/NN
decisions/NNS
and/CC
provide/VB
them/PRP
with/IN
information/NN
about/IN
their/PRP$
accounts/NNS
,/,
''/''
according/VBG
to/TO
John/NNP
Kelley/NNP
,/,
executive/JJ
vice/NN
president/NN
and/CC
corporate/JJ
services/NNS
group/NN
manager/NN
at/IN
First/NNP
Tennessee/NNP
./.
However/RB
,/,
about/RB
120/CD
employees/NNS
will/MD
be/VB
affected/VBN
by/IN
the/DT
agreement/NN
./.
First/NNP
Tennessee/NNP
,/,
assisted/VBN
by/IN
IBM/NNP
,/,
said/VBD
it/PRP
will/MD
attempt/VB
to/TO
place/VB
the/DT
employees/NNS
within/IN
the/DT
company/NN
,/,
IBM/NNP
or/CC
other/JJ
companies/NNS
in/IN
Memphis/NNP
./.
The/DT
process/NN
will/MD
take/VB
as/RB
many/JJ
as/IN
six/CD
months/NNS
to/TO
complete/VB
,/,
the/DT
company/NN
said/VBD
./.
The/DT
agreement/NN
is/VBZ
subject/JJ
to/TO
the/DT
banking/NN
company/NN
's/POS
board/NN
approval/NN
,/,
which/WDT
is/VBZ
expected/VBN
next/JJ
month/NN
./.
The/DT
Treasury/NNP
Department/NNP
said/VBD
the/DT
U.S./NNP
trade/NN
deficit/NN
may/MD
worsen/VB
next/JJ
year/NN
,/,
after/IN
two/CD
years/NNS
of/IN
significant/JJ
improvement/NN
./.
In/IN
its/PRP$
report/NN
to/TO
Congress/NNP
on/IN
international/JJ
economic/JJ
policies/NNS
,/,
the/DT
Treasury/NNP
said/VBD
that/IN
any/DT
improvement/NN
in/IN
the/DT
broadest/JJS
measure/NN
of/IN
trade/NN
,/,
known/VBN
as/IN
the/DT
current/JJ
account/NN
,/,
``/``
is/VBZ
likely/JJ
at/IN
best/JJS
to/TO
be/VB
very/RB
modest/JJ
,/,
''/''
and/CC
``/``
the/DT
possibility/NN
of/IN
deterioration/NN
in/IN
the/DT
current/JJ
account/NN
next/JJ
year/NN
can/MD
not/RB
be/VB
excluded/VBN
./.
''/''
The/DT
statement/NN
was/VBD
the/DT
U.S./NNP
government/NN
's/POS
first/JJ
acknowledgement/NN
of/IN
what/WP
other/JJ
groups/NNS
,/,
such/JJ
as/IN
the/DT
International/NNP
Monetary/NNP
Fund/NNP
,/,
have/VBP
been/VBN
predicting/VBG
for/IN
months/NNS
./.
Continued/JJ
strength/NN
in/IN
the/DT
dollar/NN
was/VBD
cited/VBN
as/IN
one/CD
reason/NN
the/DT
trade/NN
position/NN
may/MD
deteriorate/VB
./.
The/DT
Treasury/NNP
's/POS
report/NN
,/,
which/WDT
is/VBZ
required/VBN
annually/RB
by/IN
a/DT
provision/NN
of/IN
the/DT
1988/CD
trade/NN
act/NN
,/,
again/RB
took/VBD
South/NNP
Korea/NNP
to/TO
task/NN
for/IN
its/PRP$
exchange-rate/NN
policies/NNS
./.
``/``
We/PRP
believe/VBP
that/IN
there/EX
have/VBP
continued/VBD
to/TO
be/VB
indications/NNS
of/IN
exchange-rate/NN
`/``
manipulation/NN
'/''
''/''
during/IN
the/DT
past/JJ
six/CD
months/NNS
,/,
it/PRP
said/VBD
,/,
citing/VBG
the/DT
lack/NN
of/IN
market/NN
forces/NNS
in/IN
South/NNP
Korea/NNP
's/POS
exchange-rate/NN
system/NN
and/CC
the/DT
use/NN
of/IN
capital/NN
and/CC
interest-rate/NN
controls/NNS
to/TO
manipulate/VB
exchange/NN
rates/NNS
./.
The/DT
Treasury/NNP
expressed/VBD
pleasure/NN
,/,
however/RB
,/,
with/IN
the/DT
government/NN
of/IN
Taiwan/NNP
,/,
which/WDT
was/VBD
cited/VBN
for/IN
exchange-rate/NN
manipulation/NN
in/IN
last/JJ
year/NN
's/POS
report/NN
./.
The/DT
Treasury/NNP
said/VBD
Taiwan/NNP
has/VBZ
liberalized/VBN
its/PRP$
exchange/NN
rate/NN
system/NN
in/IN
the/DT
past/JJ
year/NN
./.
The/DT
fiscal/JJ
1989/CD
budget/NN
deficit/NN
figure/NN
came/VBD
out/RP
Friday/NNP
./.
It/PRP
was/VBD
down/IN
a/DT
little/JJ
./.
The/DT
next/JJ
time/NN
you/PRP
hear/VBP
a/DT
Member/NNP
of/IN
Congress/NNP
moan/VB
about/IN
the/DT
deficit/NN
,/,
consider/VB
what/WP
Congress/NNP
did/VBD
Friday/NNP
./.
The/DT
Senate/NNP
,/,
84-6/RB
,/,
voted/VBD
to/TO
increase/VB
to/TO
$/$
124,000/CD
the/DT
ceiling/NN
on/IN
insured/JJ
mortgages/NNS
from/IN
the/DT
FHA/NNP
,/,
which/WDT
lost/VBD
$/$
4.2/CD
billion/CD
in/IN
loan/NN
defaults/NNS
last/JJ
year/NN
./.
Then/RB
,/,
by/IN
voice/NN
vote/NN
,/,
the/DT
Senate/NNP
voted/VBD
a/DT
pork-barrel/JJ
bill/NN
,/,
approved/VBN
Thursday/NNP
by/IN
the/DT
House/NNP
,/,
for/IN
domestic/JJ
military/JJ
construction/NN
./.
Compare/VB
the/DT
Bush/NNP
request/NN
to/TO
what/WP
the/DT
Senators/NNS
gave/VBD
themselves/PRP
:/:
For/IN
construction/NN
in/IN
West/NNP
Virginia/NNP
,/,
Mr./NNP
Bush/NNP
requested/VBD
$/$
4.5/CD
million/CD
;/:
Congress/NNP
gave/VBD
Senator/NNP
Byrd/NNP
's/POS
state/NN
$/$
21.5/CD
million/CD
./.
Senator/NNP
Byrd/NNP
is/VBZ
chairman/NN
of/IN
the/DT
Appropriations/NNPS
Committee/NNP
./.
For/IN
Iowa/NNP
,/,
a/DT
$/$
1.8/CD
million/CD
request/NN
became/VBD
$/$
12/CD
million/CD
for/IN
Senator/NNP
Grassley/NNP
,/,
ranking/JJ
minority/NN
member/NN
of/IN
a/DT
military/JJ
construction/NN
subcommittee/NN
./.
Rep./NNP
Jamie/NNP
Whitten/NNP
of/IN
Mississippi/NNP
and/CC
chairman/NN
of/IN
House/NNP
Appropriations/NNPS
turned/VBD
a/DT
$/$
20/CD
million/CD
Bush/NNP
request/NN
for/IN
his/PRP$
state/NN
into/IN
a/DT
$/$
49.7/CD
million/CD
bequest/NN
./.
Senator/NNP
Sasser/NNP
of/IN
Tennessee/NNP
is/VBZ
chairman/NN
of/IN
the/DT
Appropriations/NNPS
subcommittee/NN
on/IN
military/JJ
construction/NN
;/:
Mr./NNP
Bush/NNP
's/POS
$/$
87/CD
million/CD
request/NN
for/IN
Tennessee/NNP
increased/VBD
to/TO
$/$
109/CD
million/CD
./.
In/IN
a/DT
remark/NN
someone/NN
should/MD
remember/VB
this/DT
time/NN
next/JJ
year/NN
,/,
Senator/NNP
Sasser/NNP
said/VBD
,/,
``/``
I/PRP
think/VBP
we/PRP
've/VBP
seen/VBN
the/DT
peak/NN
of/IN
military/JJ
construction/NN
spending/VBG
for/IN
many/JJ
years/NNS
to/TO
come/VB
./.
''/''
Tell/VB
us/PRP
about/IN
spending/NN
restraint/NN
./.
Tell/VB
us/PRP
about/IN
the/DT
HUD/NNP
scandals/NNS
./.
Tell/VB
us/PRP
what/WDT
measure/NN
,/,
short/RB
of/IN
house/NN
arrest/NN
,/,
will/MD
get/VB
this/DT
Congress/NNP
under/IN
control/NN
./.
Costa/NNP
Rica/NNP
reached/VBD
an/DT
agreement/NN
with/IN
its/PRP$
creditor/NN
banks/NNS
that/WDT
is/VBZ
expected/VBN
to/TO
cut/VB
that/DT
government/NN
's/POS
$/$
1.8/CD
billion/CD
in/IN
bank/NN
debt/NN
by/IN
as/RB
much/JJ
as/IN
60/CD
%/NN
./.
The/DT
agreement/NN
was/VBD
announced/VBN
by/IN
Costa/JJ
Rican/JJ
President/NNP
Oscar/NNP
Arias/NNP
Friday/NNP
,/,
as/IN
President/NNP
Bush/NNP
and/CC
other/JJ
leaders/NNS
from/IN
the/DT
Western/NNP
Hemisphere/NNP
gathered/VBN
in/IN
the/DT
Central/JJ
American/JJ
nation/NN
for/IN
a/DT
celebration/NN
of/IN
democracy/NN
./.
Costa/NNP
Rica/NNP
had/VBD
been/VBN
negotiating/VBG
with/IN
the/DT
U.S./NNP
and/CC
other/JJ
banks/NNS
for/IN
three/CD
years/NNS
,/,
but/CC
the/DT
debt/NN
plan/NN
was/VBD
rushed/VBN
to/TO
completion/NN
in/IN
order/NN
to/TO
be/VB
announced/VBN
at/IN
the/DT
meeting/NN
./.
The/DT
government/NN
had/VBD
fallen/VBN
$/$
300/CD
million/CD
behind/RB
in/IN
interest/NN
payments/NNS
./.
Treasury/NNP
Secretary/NNP
Nicholas/NNP
Brady/NNP
called/VBD
the/DT
agreement/NN
``/``
an/DT
important/JJ
step/NN
forward/RB
in/IN
the/DT
strengthened/JJ
debt/NN
strategy/NN
,/,
''/''
noting/VBG
that/IN
it/PRP
will/MD
``/``
when/WRB
implemented/VBN
,/,
provide/VB
significant/JJ
reduction/NN
in/IN
the/DT
level/NN
of/IN
debt/NN
and/CC
debt/NN
service/NN
owed/VBN
by/IN
Costa/NNP
Rica/NNP
./.
''/''
Under/IN
the/DT
plan/NN
,/,
Costa/NNP
Rica/NNP
will/MD
buy/VB
back/RP
roughly/RB
60/CD
%/NN
of/IN
its/PRP$
bank/NN
debt/NN
outstanding/JJ
at/IN
a/DT
deeply/RB
discounted/VBN
price/NN
,/,
according/VBG
to/TO
officials/NNS
involved/VBN
in/IN
the/DT
agreement/NN
./.
The/DT
remainder/NN
of/IN
the/DT
debt/NN
will/MD
be/VB
exchanged/VBN
for/IN
new/JJ
Costa/JJ
Rican/JJ
bonds/NNS
with/IN
a/DT
6/CD
1\/4/CD
%/NN
interest/NN
rate/NN
./.
The/DT
International/NNP
Monetary/NNP
Fund/NNP
and/CC
the/DT
World/NNP
Bank/NNP
are/VBP
expected/VBN
to/TO
provide/VB
approximately/RB
$/$
180/CD
million/CD
to/TO
help/VB
support/VB
the/DT
deal/NN
,/,
and/CC
additional/JJ
funds/NNS
are/VBP
expected/VBN
from/IN
Japan/NNP
./.
Treasury/NNP
officials/NNS
say/VBP
the/DT
Costa/JJ
Rican/JJ
agreement/NN
demonstrates/VBZ
that/IN
the/DT
Brady/NNP
debt/NN
plan/NN
can/MD
benefit/VB
small/JJ
debtor/NN
countries/NNS
as/RB
well/RB
as/IN
big/JJ
debtors/NNS
,/,
such/JJ
as/IN
Mexico/NNP
./.
The/DT
Treasury/NNP
said/VBD
it/PRP
plans/VBZ
to/TO
sell/VB
$/$
2/CD
billion/CD
of/IN
51-day/JJ
cash-management/JJ
bills/NNS
today/NN
,/,
raising/VBG
all/RB
new/JJ
cash/NN
./.
The/DT
bills/NNS
will/MD
be/VB
dated/VBN
Oct./NNP
31/CD
and/CC
will/MD
mature/VB
Dec./NNP
21/CD
,/,
No/DT
non-competitive/JJ
tenders/NNS
will/MD
be/VB
accepted/VBN
./.
Tenders/NNS
,/,
available/JJ
in/IN
minimum/JJ
denominations/NNS
of/IN
$/$
1/CD
million/CD
,/,
must/MD
be/VB
received/VBN
by/IN
noon/NN
EST/NN
today/NN
at/IN
Federal/NNP
Reserve/NNP
Banks/NNPS
or/CC
branches/NNS
./.
The/DT
Treasury/NNP
also/RB
announced/VBD
details/NNS
of/IN
this/DT
week/NN
's/POS
unusual/JJ
bill/NN
auction/NN
,/,
which/WDT
has/VBZ
been/VBN
changed/VBN
to/TO
accommodate/VB
the/DT
expiration/NN
of/IN
the/DT
federal/JJ
debt/NN
ceiling/NN
at/IN
midnight/NN
tomorrow/NN
./.
The/DT
13-week/JJ
and/CC
27-week/JJ
bills/NNS
will/MD
be/VB
issued/VBN
tomorrow/NN
rather/RB
than/IN
Thursday/NNP
,/,
Nov./NNP
2/CD
,/,
as/RB
originally/RB
planned/VBN
./.
The/DT
three-month/JJ
bills/NNS
will/MD
still/RB
mature/VB
Feb./NNP
1/CD
,/,
1990/CD
,/,
and/CC
the/DT
six-month/JJ
bills/NNS
on/IN
May/NNP
3/CD
,/,
1990/CD
./.
The/DT
Treasury/NNP
also/RB
said/VBD
noncompetitive/JJ
tenders/NNS
will/MD
be/VB
considered/VBN
timely/JJ
if/IN
postmarked/VBN
no/RB
later/RBR
than/IN
Sunday/NNP
,/,
Oct./NNP
29/CD
,/,
and/CC
received/VBN
no/RB
later/RBR
than/IN
tomorrow/NN
./.
The/DT
Treasury/NNP
said/VBD
it/PRP
wo/MD
n't/RB
be/VB
able/JJ
to/TO
honor/VB
reinvestment/NN
requests/NNS
from/IN
holders/NNS
of/IN
bills/NNS
maturing/VBG
Nov./NNP
2/CD
held/VBN
in/IN
the/DT
Treasury/NNP
's/POS
book-entry/JJ
system/NN
./.
The/DT
department/NN
will/MD
make/VB
payment/NN
for/IN
bills/NNS
maturing/VBG
on/IN
Nov./NNP
2/CD
to/TO
all/DT
investors/NNS
who/WP
have/VBP
requested/VBN
reinvestment/NN
of/IN
their/PRP$
bills/NNS
on/IN
that/DT
date/NN
,/,
as/RB
well/RB
as/IN
to/TO
all/DT
account/NN
holders/NNS
who/WP
have/VBP
previously/RB
requested/VBN
payment/NN
./.
American/NNP
Pioneer/NNP
Inc./NNP
said/VBD
it/PRP
agreed/VBD
in/IN
principle/NN
to/TO
sell/VB
its/PRP$
American/NNP
Pioneer/NNP
Life/NNP
Insurance/NNP
Co./NNP
subsidiary/NN
to/TO
Harcourt/NNP
Brace/NNP
Jovanovich/NNP
Inc./NNP
's/POS
HBJ/NNP
Insurance/NNP
Cos./NNP
for/IN
$/$
27/CD
million/CD
./.
American/NNP
Pioneer/NNP
,/,
parent/NN
of/IN
American/NNP
Pioneer/NNP
Savings/NNPS
Bank/NNP
,/,
said/VBD
the/DT
sale/NN
will/MD
add/VB
capital/NN
and/CC
reduce/VB
the/DT
level/NN
of/IN
investments/NNS
in/IN
subsidiaries/NNS
for/IN
the/DT
thrift/NN
holding/VBG
company/NN
./.
Recently/RB
,/,
the/DT
boards/NNS
of/IN
both/CD
the/DT
parent/NN
company/NN
and/CC
the/DT
thrift/NN
also/RB
voted/VBD
to/TO
suspend/VB
dividends/NNS
on/IN
preferred/JJ
shares/NNS
of/IN
both/DT
companies/NNS
and/CC
convert/VB
all/DT
preferred/JJ
into/IN
common/JJ
shares/NNS
./.
The/DT
company/NN
said/VBD
the/DT
move/NN
was/VBD
necessary/JJ
to/TO
meet/VB
capital/NN
requirements/NNS
./.
The/DT
transaction/NN
is/VBZ
subject/JJ
to/TO
execution/NN
of/IN
a/DT
definitive/JJ
purchase/NN
agreement/NN
and/CC
approval/NN
by/IN
various/JJ
regulatory/JJ
agencies/NNS
,/,
including/VBG
the/DT
insurance/NN
departments/NNS
of/IN
the/DT
states/NNS
of/IN
Florida/NNP
and/CC
Indiana/NNP
,/,
the/DT
company/NN
said/VBD
./.
In/IN
the/DT
second/JJ
quarter/NN
,/,
American/NNP
Pioneer/NNP
reported/VBD
a/DT
loss/NN
of/IN
$/$
7.3/CD
million/CD
,/,
compared/VBN
with/IN
net/JJ
income/NN
of/IN
$/$
1.1/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
The/DT
banking/NN
operation/NN
had/VBD
a/DT
loss/NN
of/IN
$/$
8.7/CD
million/CD
in/IN
the/DT
second/JJ
quarter/NN
,/,
largely/RB
because/IN
of/IN
problem/NN
real-estate/NN
loans/NNS
,/,
while/IN
the/DT
insurance/NN
operations/NNS
earned/VBD
$/$
884,000/CD
./.
October/NNP
employment/NN
data/NNS
--/:
also/RB
could/MD
turn/VB
out/RP
to/TO
be/VB
the/DT
most/RBS
confusing/JJ
./.
On/IN
the/DT
surface/NN
,/,
the/DT
overall/JJ
unemployment/NN
rate/NN
is/VBZ
expected/VBN
to/TO
be/VB
little/RB
changed/VBN
from/IN
September/NNP
's/POS
5.3/CD
%/NN
./.
But/CC
the/DT
actual/JJ
head/NN
count/NN
of/IN
non-farm/JJ
employment/NN
payroll/NN
jobs/NNS
is/VBZ
likely/JJ
to/TO
be/VB
muddied/VBN
by/IN
the/DT
impact/NN
of/IN
Hurricane/NNP
Hugo/NNP
,/,
strikes/NNS
,/,
and/CC
less-than-perfect/JJ
seasonal/JJ
adjustments/NNS
,/,
economists/NNS
said/VBD
./.
The/DT
consensus/NN
view/NN
calls/VBZ
for/IN
an/DT
overall/JJ
job/NN
gain/NN
of/IN
155,000/CD
compared/VBN
with/IN
September/NNP
's/POS
209,000/CD
increase/NN
./.
But/CC
the/DT
important/JJ
factory-jobs/NNS
segment/NN
,/,
which/WDT
last/JJ
month/NN
plunged/VBD
by/IN
103,000/CD
positions/NNS
and/CC
raised/VBD
recession/NN
fears/NNS
,/,
is/VBZ
most/RBS
likely/JJ
to/TO
be/VB
skewed/VBN
by/IN
the/DT
month/NN
's/POS
unusual/JJ
events/NNS
./.
Several/JJ
other/JJ
reports/NNS
come/VBN
before/IN
Friday/NNP
's/POS
jobs/NNS
data/NNS
,/,
including/VBG
:/:
the/DT
September/NNP
leading/JJ
indicators/NNS
index/NN
,/,
new-home/JJ
sales/NNS
and/CC
October/NNP
agricultural/JJ
prices/NNS
reports/NNS
due/JJ
out/RB
tomorrow/NN
;/:
the/DT
October/NNP
purchasing/NN
managers/NNS
'/POS
index/NN
and/CC
September/NNP
construction/NN
spending/NN
and/CC
manufacturers/NNS
'/POS
orders/NNS
on/IN
Wednesday/NNP
;/:
and/CC
October/NNP
chain-store/JJ
sales/NNS
on/IN
Thursday/NNP
./.
Friday/NNP
brings/VBZ
the/DT
final/JJ
count/NN
on/IN
October/NNP
auto/NN
sales/NNS
./.
``/``
The/DT
employment/NN
report/NN
is/VBZ
going/VBG
to/TO
be/VB
difficult/JJ
to/TO
interpret/VB
,/,
''/''
said/VBD
Michael/NNP
Englund/NNP
,/,
economist/NN
with/IN
MMS/NNP
International/NNP
,/,
a/DT
unit/NN
of/IN
McGraw-Hill/NNP
Inc./NNP
,/,
New/NNP
York/NNP
./.
Mr./NNP
Englund/NNP
added/VBD
that/IN
next/JJ
month/NN
's/POS
data/NN
is/VBZ
n't/RB
likely/JJ
to/TO
be/VB
much/RB
better/JJR
,/,
because/IN
it/PRP
will/MD
be/VB
distorted/VBN
by/IN
San/NNP
Francisco/NNP
's/POS
earthquake/NN
./.
What/WP
's/VBZ
more/JJR
,/,
he/PRP
believes/VBZ
seasonal/JJ
swings/NNS
in/IN
the/DT
auto/NN
industry/NN
this/DT
year/NN
are/VBP
n't/RB
occurring/VBG
at/IN
the/DT
same/JJ
time/NN
as/IN
in/IN
the/DT
past/NN
,/,
because/IN
of/IN
production/NN
and/CC
pricing/NN
differences/NNS
that/WDT
are/VBP
curbing/VBG
the/DT
accuracy/NN
of/IN
seasonal/JJ
adjustments/NNS
built/VBN
into/IN
the/DT
employment/NN
data/NN
./.
Wednesday/NNP
's/POS
report/NN
from/IN
the/DT
purchasing/VBG
agents/NNS
will/MD
be/VB
watched/VBN
to/TO
see/VB
if/IN
the/DT
index/NN
maintains/VBZ
a/DT
level/NN
below/IN
50/CD
%/NN
,/,
as/IN
it/PRP
has/VBZ
for/IN
the/DT
past/JJ
couple/NN
of/IN
months/NNS
./.
A/DT
reading/NN
of/IN
less/JJR
than/IN
50/CD
%/NN
indicates/VBZ
an/DT
economy/NN
that/WDT
is/VBZ
generally/RB
contracting/VBG
while/IN
a/DT
reading/NN
above/IN
50/CD
%/NN
indicates/VBZ
an/DT
economy/NN
that/WDT
's/VBZ
expanding/VBG
./.
Samuel/NNP
D./NNP
Kahan/NNP
,/,
chief/JJ
financial/JJ
economist/NN
at/IN
Kleinwort/NNP
Benson/NNP
Government/NNP
Securities/NNPS
Inc./NNP
,/,
Chicago/NNP
,/,
said/VBD
that/IN
the/DT
purchasers/NNS
'/POS
report/NN
is/VBZ
valuable/JJ
because/IN
it/PRP
often/RB
presents/VBZ
the/DT
first/JJ
inkling/NN
of/IN
economic/JJ
data/NNS
for/IN
the/DT
month/NN
./.
But/CC
he/PRP
added/VBD
:/:
``/``
Some/DT
people/NNS
use/VBP
the/DT
purchasers/NNS
'/POS
index/NN
as/IN
a/DT
leading/JJ
indicator/NN
,/,
some/DT
use/VBP
it/PRP
as/IN
a/DT
coincident/JJ
indicator/NN
./.
But/CC
the/DT
thing/NN
it/PRP
's/VBZ
supposed/VBN
to/TO
measure/VB
--/:
manufacturing/NN
strength/NN
--/:
it/PRP
missed/VBD
altogether/RB
last/JJ
month/NN
./.
''/''
David/NNP
Wyss/NNP
,/,
chief/JJ
financial/JJ
economist/NN
at/IN
Data/NNP
Resources/NNP
Inc./NNP
,/,
Boston/NNP
,/,
said/VBD
that/IN
the/DT
purchasers/NNS
'/POS
index/NN
``/``
does/VBZ
miss/VB
occasionally/RB
,/,
''/''
adding/VBG
:/:
``/``
When/WRB
it/PRP
misses/VBZ
one/CD
month/NN
it/PRP
tends/VBZ
to/TO
miss/VB
the/DT
next/JJ
month/NN
,/,
too/RB
./.
''/''
The/DT
consensus/NN
view/NN
on/IN
September/NNP
leading/JJ
indicators/NNS
calls/VBZ
for/IN
a/DT
gain/NN
of/IN
0.3/CD
%/NN
,/,
the/DT
same/JJ
as/IN
in/IN
August/NNP
./.
Economists/NNS
said/VBD
greatly/RB
increased/JJ
consumer/NN
optimism/NN
,/,
a/DT
larger/JJR
money/NN
supply/NN
and/CC
higher/JJR
stock/NN
prices/NNS
helped/VBD
lift/VB
the/DT
index/NN
./.
All/DT
orders-related/JJ
components/NNS
,/,
such/JJ
as/IN
consumer-goods/NNS
orders/NNS
and/CC
building/NN
permits/NNS
,/,
are/VBP
thought/VBN
to/TO
have/VB
been/VBN
weaker/JJR
./.
Data/NNP
Resources/NNP
'/POS
Mr./NNP
Wyss/NNP
added/VBD
that/IN
he/PRP
will/MD
be/VB
keeping/VBG
a/DT
closer/JJR
eye/NN
than/IN
ususal/JJ
on/IN
October/NNP
chain-store/JJ
sales/NNS
./.
Usually/RB
,/,
October/NNP
``/``
is/VBZ
n't/RB
a/DT
very/RB
interesting/JJ
month/NN
retail/JJ
figures/NNS
school/NN
clothes/NNS
have/VBP
been/VBN
bought/VBN
and/CC
people/NNS
are/VBP
waiting/VBG
for/IN
December/NNP
to/TO
buy/VB
Christmas/NNP
presents/NNS
,/,
''/''
he/PRP
said/VBD
./.
But/CC
Mr./NNP
Wyss/NNP
said/VBD
he/PRP
will/MD
watch/VB
the/DT
numbers/NNS
to/TO
get/VB
an/DT
inkling/NN
of/IN
whether/IN
consumers/NNS
'/POS
general/JJ
buying/NN
habits/NNS
may/MD
slack/VB
off/RP
as/RB
much/RB
as/IN
their/PRP$
auto-buying/NN
apparently/RB
has/VBZ
./.
He/PRP
noted/VBD
that/IN
higher/JJR
gasoline/NN
prices/NNS
will/MD
help/VB
buoy/VB
the/DT
October/NNP
totals/NNS
./.
Seasonal/JJ
factors/NNS
are/VBP
also/RB
expected/VBN
to/TO
have/VB
taken/VBN
their/PRP$
toll/NN
on/IN
September/NNP
new-home/JJ
sales/NNS
,/,
which/WDT
are/VBP
believed/VBN
to/TO
have/VB
fallen/VBN
sharply/RB
from/IN
August/NNP
's/POS
755,000/CD
units/NNS
./.
Construction/NN
spending/NN
is/VBZ
believed/VBN
to/TO
have/VB
slipped/VBN
about/RB
0.5/CD
%/NN
from/IN
August/NNP
levels/NNS
,/,
although/IN
economists/NNS
noted/VBD
the/DT
rate/NN
probably/RB
will/MD
pick/VB
up/RP
in/IN
the/DT
months/NNS
ahead/RB
in/IN
response/NN
to/TO
hurricane/NN
and/CC
earthquake/NN
damage/NN
./.
Factory/NN
owners/NNS
are/VBP
buying/VBG
new/JJ
machinery/NN
at/IN
a/DT
good/JJ
rate/NN
this/DT
fall/NN
,/,
machine/NN
tool/NN
makers/NNS
say/VBP
,/,
but/CC
sluggish/JJ
sales/NNS
of/IN
new/JJ
cars/NNS
and/CC
trucks/NNS
raise/VBP
questions/NNS
about/IN
fourth-quarter/JJ
demand/NN
from/IN
the/DT
important/JJ
automotive/JJ
industry/NN
./.
September/NNP
orders/NNS
for/IN
machine/NN
tools/NNS
rebounded/VBD
from/IN
the/DT
summer/NN
doldrums/NNS
,/,
but/CC
remained/VBD
7.7/CD
%/NN
below/IN
year-earlier/JJ
levels/NNS
,/,
according/VBG
to/TO
figures/NNS
from/IN
NMTBA/NNP
--/:
the/DT
Association/NNP
for/IN
Manufacturing/NNP
Technology/NNP
./.
Domestic/JJ
machine/NN
tool/NN
plants/NNS
received/VBD
$/$
303/CD
million/CD
of/IN
orders/NNS
last/JJ
month/NN
,/,
up/RB
33/CD
%/NN
from/IN
August/NNP
's/POS
$/$
227.1/CD
million/CD
,/,
but/CC
still/RB
below/IN
the/DT
$/$
328.2/CD
million/CD
of/IN
September/NNP
1988/CD
,/,
NMTBA/NNP
said/VBD
./.
Machine/NN
tools/NNS
are/VBP
complex/JJ
machines/NNS
ranging/VBG
from/IN
lathes/NNS
to/TO
metal-forming/JJ
presses/NNS
that/WDT
are/VBP
used/VBN
to/TO
shape/VB
most/JJS
metal/NN
parts/NNS
./.
``/``
Overall/JJ
demand/NN
still/RB
is/VBZ
very/RB
respectable/JJ
,/,
''/''
says/VBZ
Christopher/NNP
C./NNP
Cole/NNP
,/,
group/NN
vice/NN
president/NN
at/IN
Cincinnati/NNP
Milacron/NNP
Inc./NNP
,/,
the/DT
nation/NN
's/POS
largest/JJS
machine/NN
tool/NN
producer/NN
./.
``/``
The/DT
outlook/NN
is/VBZ
positive/JJ
for/IN
the/DT
intermediate/JJ
to/TO
long/JJ
term/NN
./.
''/''
September/NNP
orders/NNS
for/IN
all/DT
U.S./NNP
producers/NNS
,/,
in/IN
fact/NN
,/,
were/VBD
slightly/RB
above/IN
the/DT
monthly/JJ
average/NN
for/IN
1988/CD
,/,
a/DT
good/JJ
year/NN
for/IN
the/DT
industry/NN
./.
``/``
Aerospace/NN
orders/NNS
are/VBP
very/RB
good/JJ
,/,
''/''
Mr./NNP
Cole/NNP
says/VBZ
./.
``/``
And/CC
export/NN
business/NN
is/VBZ
still/RB
good/JJ
./.
While/IN
some/DT
automotive/JJ
programs/NNS
have/VBP
been/VBN
delayed/VBN
,/,
they/PRP
have/VBP
n't/RB
been/VBN
canceled/VBN
./.
''/''
``/``
September/NNP
was/VBD
one/CD
of/IN
the/DT
biggest/JJS
order/NN
months/NNS
in/IN
our/PRP$
history/NN
,/,
''/''
says/VBZ
James/NNP
R./NNP
Roberts/NNP
,/,
vice/NN
president/NN
,/,
world-wide/JJ
sales/NNS
and/CC
marketing/NN
,/,
for/IN
Giddings/NNP
&/CC
Lewis/NNP
Inc./NNP
,/,
Fond/NNP
du/NNP
Lac/NNP
,/,
Wis/NNP
./.
At/IN
a/DT
recent/JJ
meeting/NN
of/IN
manufacturing/NN
executives/NNS
,/,
``/``
everybody/NN
I/PRP
talked/VBD
with/IN
was/VBD
very/RB
positive/JJ
,/,
''/''
he/PRP
says/VBZ
./.
Most/JJS
say/VBP
they/PRP
plan/VBP
to/TO
spend/VB
more/JJR
on/IN
factory/NN
equipment/NN
in/IN
1990/CD
than/IN
in/IN
1989/CD
./.
But/CC
sales/NNS
of/IN
North/JJ
American-made/JJ
1990-model/JJ
cars/NNS
are/VBP
running/VBG
at/IN
an/DT
annual/JJ
rate/NN
of/IN
only/RB
six/CD
million/CD
,/,
down/RB
from/IN
7.1/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
And/CC
truck/NN
sales/NNS
also/RB
are/VBP
off/RB
more/RBR|JJR
than/IN
20/CD
%/NN
./.
Auto/NN
makers/NNS
,/,
who/WP
began/VBD
deferring/VBG
some/DT
equipment/NN
purchases/NNS
last/JJ
spring/NN
,/,
can/MD
be/VB
expected/VBN
to/TO
remain/VB
cautious/JJ
about/IN
spending/VBG
if/IN
their/PRP$
sales/NNS
do/VBP
n't/RB
pick/VB
up/RP
,/,
machine/NN
tool/NN
builders/NNS
say/VBP
./.
Machine/NN
tool/NN
executives/NNS
are/VBP
hopeful/JJ
,/,
however/RB
,/,
that/IN
recent/JJ
developments/NNS
in/IN
Eastern/NNP
Europe/NNP
will/MD
expand/VB
markets/NNS
for/IN
U.S.-made/JJ
machine/NN
tools/NNS
in/IN
that/DT
region/NN
./.
There/EX
is/VBZ
demand/NN
for/IN
state-of-the-art/JJ
machine/NN
tools/NNS
in/IN
the/DT
Soviet/NNP
Union/NNP
and/CC
in/IN
other/JJ
Eastern/JJ
European/JJ
countries/NNS
as/IN
those/DT
nations/NNS
strive/VBP
to/TO
improve/VB
the/DT
efficiency/NN
of/IN
their/PRP$
ailing/VBG
factories/NNS
as/RB
well/RB
as/IN
the/DT
quality/NN
of/IN
their/PRP$
goods/NNS
./.
However/RB
,/,
there/EX
's/VBZ
a/DT
continuing/VBG
dispute/NN
between/IN
machine/NN
tool/NN
makers/NNS
and/CC
the/DT
Defense/NNP
Department/NNP
over/IN
whether/IN
sophisticated/JJ
U.S./NNP
machine/NN
tools/NNS
would/MD
increase/VB
the/DT
Soviet/NNP
Union/NNP
's/POS
military/JJ
might/NN
./.
``/``
The/DT
Commerce/NNP
Department/NNP
says/VBZ
go/VB
,/,
and/CC
the/DT
Defense/NNP
Department/NNP
says/VBZ
stop/VB
,/,
''/''
complains/VBZ
one/CD
machine/NN
tool/NN
producer/NN
./.
If/IN
that/DT
controversy/NN
continues/VBZ
,/,
U.S./NNP
machine/NN
tool/NN
makers/NNS
say/VBP
,/,
West/JJ
German/JJ
and/CC
other/JJ
foreign/JJ
producers/NNS
are/VBP
likely/JJ
to/TO
grab/VB
most/JJS
of/IN
the/DT
sales/NNS
in/IN
Eastern/NNP
Europe/NNP
./.
September/NNP
orders/NNS
for/IN
machining/NN
centers/NNS
,/,
lathes/NNS
,/,
milling/NN
machines/NNS
,/,
grinders/NNS
,/,
boring/NN
mills/NNS
and/CC
other/JJ
machines/NNS
that/IN
shape/NN
metal/NN
by/IN
cutting/VBG|NN
totaled/VBD
$/$
192.9/CD
million/CD
,/,
down/RB
28/CD
%/NN
from/IN
$/$
266.5/CD
million/CD
a/DT
year/NN
earlier/RBR
,/,
but/CC
a/DT
23/CD
%/NN
increase/NN
from/IN
August/NNP
's/POS
$/$
156.3/CD
million/CD
,/,
NMTBA/NNP
said/VBD
./.
Orders/NNS
last/JJ
month/NN
for/IN
metal-forming/JJ
presses/NNS
and/CC
other/JJ
machinery/NN
to/TO
form/VB
metal/NN
with/IN
pressure/NN
surged/VBD
to/TO
$/$
110.1/CD
million/CD
,/,
a/DT
78/CD
%/NN
rise/NN
from/IN
$/$
61.7/CD
million/CD
a/DT
year/NN
earlier/RBR
and/CC
a/DT
55/CD
%/NN
gain/NN
from/IN
$/$
70.9/CD
million/CD
in/IN
August/NNP
./.
Today/NN
's/POS
presses/NNS
are/VBP
large/JJ
and/CC
costly/JJ
machines/NNS
,/,
and/CC
a/DT
few/JJ
orders/NNS
can/MD
produce/VB
a/DT
high/JJ
total/NN
for/IN
one/CD
month/NN
that/DT
does/VBZ
n't/RB
necessarily/RB
indicate/VB
a/DT
trend/NN
./.
Machine/NN
tool/NN
shipments/NNS
last/JJ
month/NN
were/VBD
$/$
281.2/CD
million/CD
,/,
a/DT
24/CD
%/NN
rise/NN
from/IN
a/DT
year/NN
earlier/RBR
and/CC
a/DT
25/CD
%/NN
increase/NN
from/IN
August/NNP
./.
Shipments/NNS
have/VBP
run/VBN
well/RB
ahead/RB
of/IN
1988/CD
all/DT
year/NN
,/,
as/IN
machine/NN
tool/NN
builders/NNS
produce/VBP
against/IN
relatively/RB
good/JJ
backlogs/NNS
./.
U.S./NNP
producers/NNS
had/VBD
a/DT
$/$
2.15/CD
billion/CD
backlog/NN
of/IN
unfilled/JJ
orders/NNS
at/IN
the/DT
end/NN
of/IN
September/NNP
./.
That/DT
was/VBD
up/RB
2.8/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
,/,
even/RB
though/IN
orders/NNS
for/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
1989/CD
were/VBD
down/RB
19/CD
%/NN
from/IN
the/DT
comparable/JJ
1988/CD
period/NN
./.
$/$
2,057,750,000/CD
./.
$/$
675,400,000/CD
./.
$/$
1,048,500,000/CD
./.
$/$
588,350,000/CD
./.
In/IN
Bombay/NNP
stock/NN
market/NN
circles/NNS
,/,
the/DT
buzzword/NN
is/VBZ
``/``
mega/JJ
./.
''/''
At/IN
least/JJS
40/CD
companies/NNS
are/VBP
coming/VBG
to/TO
the/DT
capital/NN
market/NN
to/TO
raise/VB
$/$
6/CD
billion/CD
,/,
an/DT
amount/NN
never/RB
thought/VBN
possible/JJ
in/IN
India/NNP
./.
``/``
When/WRB
they/PRP
talk/VBP
mega-issues/NNS
,/,
they/PRP
're/VBP
truly/RB
talking/VBG
mega/JJ
,/,
''/''
says/VBZ
S.A./NNP
Dave/NNP
,/,
chairman/NN
of/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Board/NNP
of/IN
India/NNP
./.
``/``
The/DT
capital/NN
market/NN
is/VBZ
booming/VBG
./.
''/''
But/CC
the/DT
mega-issues/NNS
are/VBP
raising/VBG
megaquestions/NNS
about/IN
the/DT
rapidly/RB
evolving/VBG
Indian/JJ
capital/NN
market/NN
./.
One/CD
is/VBZ
whether/IN
there/EX
is/VBZ
enough/JJ
money/NN
to/TO
fund/VB
the/DT
new/JJ
issues/NNS
without/IN
depressing/VBG
stock/NN
trading/NN
./.
Moreover/RB
,/,
in/IN
the/DT
relatively/RB
unregulated/JJ
Indian/JJ
stock/NN
markets/NNS
,/,
investors/NNS
frequently/RB
do/VBP
n't/RB
know/VB
what/WP
they/PRP
are/VBP
getting/VBG
when/WRB
they/PRP
subscribe/VBP
to/TO
an/DT
issue/NN
./.
A/DT
prospectus/NN
in/IN
India/NNP
does/VBZ
n't/RB
always/RB
tell/VB
a/DT
potential/JJ
investor/NN
much/JJ
./.
Some/DT
of/IN
the/DT
large/JJ
amounts/NNS
are/VBP
being/VBG
raised/VBN
by/IN
small/JJ
firms/NNS
./.
In/IN
addition/NN
,/,
once/RB
money/NN
is/VBZ
raised/VBN
,/,
investors/NNS
usually/RB
have/VBP
no/DT
way/NN
of/IN
knowing/VBG
how/WRB
it/PRP
is/VBZ
spent/VBN
./.
Some/DT
analysts/NNS
are/VBP
concerned/JJ
that/IN
the/DT
mega-issues/NNS
,/,
in/IN
such/PDT
an/DT
unregulated/JJ
environment/NN
,/,
could/MD
lead/VB
to/TO
a/DT
mega-crash/NN
./.
``/``
The/DT
rate/NN
of/IN
failures/NNS
will/MD
be/VB
much/RB
more/JJR
than/IN
the/DT
rate/NN
of/IN
successes/NNS
in/IN
the/DT
mega-projects/NNS
,/,
''/''
says/VBZ
G.S./NNP
Patel/NNP
,/,
a/DT
former/JJ
chairman/NN
of/IN
the/DT
giant/JJ
,/,
government-run/JJ
mutual/JJ
fund/NN
,/,
the/DT
Unit/NNP
Trust/NNP
of/IN
India/NNP
./.
``/``
They/PRP
're/VBP
going/VBG
to/TO
have/VB
mega-problems/NNS
./.
''/''
The/DT
Indian/JJ
stock/NN
markets/NNS
have/VBP
been/VBN
on/IN
a/DT
five-year/JJ
high/NN
,/,
with/IN
dips/NNS
and/CC
corrections/NNS
,/,
since/IN
Prime/NNP
Minister/NNP
Rajiv/NNP
Gandhi/NNP
started/VBD
liberalizing/VBG
industry/NN
./.
But/CC
the/DT
last/JJ
stock/NN
market/NN
boom/NN
,/,
in/IN
1986/CD
,/,
seems/VBZ
small/JJ
compared/VBN
with/IN
the/DT
current/JJ
rush/NN
to/TO
market/NN
./.
The/DT
$/$
6/CD
billion/CD
that/IN
some/RB
40/CD
companies/NNS
are/VBP
looking/VBG
to/TO
raise/VB
in/IN
the/DT
year/NN
ending/VBG
March/NNP
31/CD
compares/VBZ
with/IN
only/RB
$/$
2.7/CD
billion/CD
raised/VBD
on/IN
the/DT
capital/NN
market/NN
in/IN
the/DT
previous/JJ
fiscal/JJ
year/NN
./.
In/IN
fiscal/JJ
1984/CD
,/,
before/IN
Mr./NNP
Gandhi/NNP
came/VBD
to/TO
power/NN
,/,
only/RB
$/$
810/CD
million/CD
was/VBD
raised/VBN
./.
This/DT
year/NN
's/POS
biggest/JJS
issue/NN
,/,
$/$
570/CD
million/CD
of/IN
convertible/JJ
debentures/NNS
by/IN
engineering/NN
company/NN
Larsen/NNP
&/CC
Toubro/NNP
Ltd./NNP
,/,
is/VBZ
the/DT
largest/JJS
in/IN
Indian/JJ
history/NN
./.
And/CC
it/PRP
is/VBZ
n't/RB
the/DT
only/JJ
giant/JJ
issue/NN
:/:
together/RB
,/,
the/DT
top/JJ
four/CD
issues/NNS
will/MD
raise/VB
$/$
1.3/CD
billion/CD
./.
Convertible/JJ
debentures/NNS
--/:
bonds/NNS
that/WDT
can/MD
later/RB
be/VB
converted/VBN
into/IN
equity/NN
shares/NNS
--/:
are/VBP
the/DT
most/RBS
popular/JJ
instrument/NN
this/DT
year/NN
,/,
though/IN
many/JJ
companies/NNS
are/VBP
also/RB
selling/VBG
nonconvertible/JJ
bonds/NNS
or/CC
equity/NN
shares/NNS
./.
These/DT
mega-issues/NNS
are/VBP
being/VBG
propelled/VBN
by/IN
two/CD
factors/NNS
,/,
economic/JJ
and/CC
political/JJ
./.
In/IN
the/DT
past/NN
,/,
the/DT
socialist/JJ
policies/NNS
of/IN
the/DT
government/NN
strictly/RB
limited/VBD
the/DT
size/NN
of/IN
new/JJ
steel/NN
mills/NNS
,/,
petrochemical/NN
plants/NNS
,/,
car/NN
factories/NNS
and/CC
other/JJ
industrial/JJ
concerns/NNS
to/TO
conserve/VB
resources/NNS
and/CC
restrict/VB
the/DT
profits/NNS
businessmen/NNS
could/MD
make/VB
./.
As/IN
a/DT
result/NN
,/,
industry/NN
operated/VBD
out/IN
of/IN
small/JJ
,/,
expensive/JJ
,/,
highly/RB
inefficient/JJ
industrial/JJ
units/NNS
./.
When/WRB
Mr./NNP
Gandhi/NNP
came/VBD
to/TO
power/NN
,/,
he/PRP
ushered/VBD
in/RP
new/JJ
rules/NNS
for/IN
business/NN
./.
He/PRP
said/VBD
industry/NN
should/MD
build/VB
plants/NNS
on/IN
the/DT
same/JJ
scale/NN
as/IN
those/DT
outside/IN
India/NNP
and/CC
benefit/NN
from/IN
economies/NNS
of/IN
scale/NN
./.
If/IN
the/DT
output/NN
was/VBD
too/RB
great/JJ
for/IN
the/DT
domestic/JJ
market/NN
,/,
he/PRP
said/VBD
,/,
companies/NNS
should/MD
export/VB
./.
India/NNP
's/POS
overregulated/JJ
businessmen/NNS
had/VBD
to/TO
be/VB
persuaded/VBN
,/,
but/CC
they/PRP
have/VBP
started/VBD
to/TO
think/VB
big/JJ
./.
Some/DT
of/IN
the/DT
projects/NNS
being/VBG
funded/JJ
by/IN
the/DT
new/JJ
issues/NNS
are/VBP
the/DT
first/JJ
fruits/NNS
of/IN
Mr./NNP
Gandhi/NNP
's/POS
policy/NN
,/,
and/CC
they/PRP
require/VBP
more/JJR
capital/JJ
than/IN
the/DT
smaller/JJR
industrial/JJ
units/NNS
built/VBN
in/IN
the/DT
past/NN
./.
The/DT
industrial/JJ
revolution/NN
has/VBZ
produced/VBN
an/DT
explosion/NN
in/IN
the/DT
capital/NN
market/NN
,/,
which/WDT
is/VBZ
a/DT
far/RB
cheaper/JJR
source/NN
of/IN
funds/NNS
than/IN
government-controlled/JJ
banks/NNS
,/,
where/WRB
interest/NN
rates/NNS
for/IN
prime/JJ
borrowers/NNS
are/VBP
around/RB
16/CD
%/NN
./.
The/DT
second/JJ
factor/NN
spurring/VBG
mega-issues/NNS
is/VBZ
political/JJ
./.
Mr./NNP
Gandhi/NNP
has/VBZ
called/VBN
general/JJ
elections/NNS
for/IN
November/NNP
,/,
and/CC
many/JJ
businessmen/NNS
fear/VBP
that/IN
he/PRP
and/CC
his/PRP$
Congress/NNP
I/NNP
Party/NNP
will/MD
lose/VB
./.
Some/DT
companies/NNS
are/VBP
raising/VBG
money/NN
in/IN
anticipation/NN
of/IN
a/DT
government/NN
less/RBR
predictable/JJ
than/IN
Mr./NNP
Gandhi/NNP
's/POS
,/,
and/CC
possibly/RB
more/RBR
restrictive/JJ
./.
The/DT
buoyant/JJ
Bombay/NNP
rumor/NN
mill/NN
also/RB
says/VBZ
that/IN
some/DT
of/IN
the/DT
money/NN
raised/VBN
in/IN
the/DT
current/JJ
spate/NN
of/IN
issues/NNS
will/MD
be/VB
used/VBN
as/IN
campaign/NN
donations/NNS
before/IN
the/DT
elections/NNS
./.
No/DT
one/NN
admits/VBZ
to/TO
anything/NN
,/,
but/CC
India/NNP
's/POS
industrialists/NNS
have/VBP
a/DT
history/NN
of/IN
making/VBG
under-the-table/JJ
campaign/NN
donations/NNS
./.
So/RB
far/RB
,/,
the/DT
mega-issues/NNS
are/VBP
a/DT
hit/NN
with/IN
investors/NNS
./.
Earlier/RBR
this/DT
year/NN
,/,
Tata/NNP
Iron/NNP
&/CC
Steel/NNP
Co./NNP
's/POS
offer/NN
of/IN
$/$
355/CD
million/CD
of/IN
convertible/JJ
debentures/NNS
was/VBD
oversubscribed/VBN
./.
Essar/NNP
Gujarat/NNP
Ltd./NNP
,/,
a/DT
marine/JJ
construction/NN
company/NN
,/,
had/VBD
similar/JJ
success/NN
with/IN
a/DT
slightly/RB
smaller/JJR
issue/NN
./.
Larsen/NNP
&/CC
Toubro/NNP
started/VBD
accepting/VBG
applications/NNS
for/IN
its/PRP$
giant/JJ
issue/NN
earlier/RBR
this/DT
month/NN
;/:
bankers/NNS
and/CC
analysts/NNS
expect/VBP
it/PRP
to/TO
be/VB
oversubscribed/VBN
./.
Still/RB
to/TO
come/VB
are/VBP
big/JJ
issues/NNS
by/IN
Bindal/NNP
Agro/NNP
Chem/NNP
Ltd./NNP
,/,
a/DT
petrochemical/NN
and/CC
agrochemical/NN
company/NN
,/,
and/CC
Usha/NNP
Rectifier/NNP
Corp/NNP
./.
India/NNP
a/DT
semiconductor/NN
maker/NN
./.
While/IN
many/JJ
investors/NNS
are/VBP
selling/VBG
parts/NNS
of/IN
their/PRP$
portfolios/NNS
to/TO
buy/VB
the/DT
new/JJ
issues/NNS
,/,
prices/NNS
on/IN
India/NNP
's/POS
16/CD
stock/NN
exchanges/NNS
are/VBP
holding/VBG
up/RP
so/RB
far/RB
./.
``/``
I/PRP
do/VBP
n't/RB
think/VB
it/PRP
will/MD
lead/VB
to/TO
any/DT
chaos/NN
in/IN
the/DT
secondary/JJ
market/NN
,/,
''/''
says/VBZ
Mr./NNP
Patel/NNP
,/,
``/``
only/RB
a/DT
sagging/NN
tendency/NN
./.
''/''
Says/VBZ
M.J./NNP
Pherwani/NNP
,/,
chairman/NN
of/IN
the/DT
Unit/NNP
Trust/NNP
of/IN
India/NNP
:/:
The/DT
``/``
markets/NNS
are/VBP
headed/VBN
for/IN
growth/NN
unheard/JJ
of/IN
and/CC
unseen/JJ
before/RB
./.
''/''
But/CC
with/IN
growth/NN
come/VBP
growing/NN
pains/NNS
,/,
and/CC
never/RB
has/VBZ
this/DT
been/VBN
clearer/JJR
on/IN
the/DT
Indian/JJ
capital/NN
market/NN
than/IN
now/RB
./.
In/IN
the/DT
past/NN
,/,
the/DT
government/NN
controlled/VBD
the/DT
markets/NNS
indirectly/RB
,/,
through/IN
its/PRP$
tight/JJ
grip/NN
on/IN
industry/NN
itself/PRP
./.
Various/JJ
ministries/NNS
decided/VBD
the/DT
products/NNS
businessmen/NNS
could/MD
produce/VB
and/CC
how/WRB
much/JJ
;/:
and/CC
government-owned/JJ
banks/NNS
controlled/VBD
the/DT
financing/NN
of/IN
projects/NNS
and/CC
monitored/VBD
whether/IN
companies/NNS
came/VBD
through/RB
on/IN
promised/VBN
plans/NNS
./.
The/DT
government/NN
has/VBZ
been/VBN
content/JJ
with/IN
this/DT
far-reaching/JJ
,/,
subtle/JJ
form/NN
of/IN
control/NN
,/,
exercised/VBN
on/IN
a/DT
case-by-case/JJ
basis/NN
with/IN
no/DT
clear/JJ
rules/NNS
or/CC
guidelines/NNS
./.
But/CC
now/RB
,/,
with/IN
large/JJ
amounts/NNS
being/VBG
raised/VBN
from/IN
investors/NNS
,/,
the/DT
government/NN
's/VBZ
dawdling/VBG
on/IN
regulation/NN
and/CC
disclosure/NN
requirements/NNS
has/VBZ
a/DT
more/RBR
dangerous/JJ
aspect/NN
./.
The/DT
Securities/NNP
and/CC
Exchange/NNP
Board/NNP
of/IN
India/NNP
was/VBD
set/VBN
up/RP
earlier/RBR
this/DT
year/NN
,/,
along/IN
the/DT
lines/NNS
of/IN
the/DT
U.S./NNP
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
,/,
but/CC
New/NNP
Delhi/NNP
has/VBZ
n't/RB
pushed/VBN
the/DT
legislation/NN
to/TO
make/VB
it/PRP
operational/JJ
./.
Mr./NNP
Dave/NNP
,/,
its/PRP$
head/NN
,/,
acts/VBZ
cheery/JJ
and/CC
patient/JJ
,/,
but/CC
he/PRP
makes/VBZ
no/DT
bones/NNS
about/IN
the/DT
need/NN
to/TO
get/VB
to/TO
work/VB
./.
``/``
Mega/JJ
or/CC
non-mega/JJ
,/,
we/PRP
feel/VBP
the/DT
prospectus/NN
standards/NNS
need/VB
to/TO
be/VB
considerably/RB
improved/VBN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
Disclosures/NNS
are/VBP
very/RB
poor/JJ
in/IN
India/NNP
./.
''/''
He/PRP
says/VBZ
the/DT
big/JJ
questions/NNS
--/:
``/``
Do/VBP
you/PRP
really/RB
need/VB
this/RB
much/JJ
money/NN
to/TO
put/VB
up/RP
these/DT
investments/NNS
?/.
Have/VBP
you/PRP
told/VBN
investors/NNS
what/WP
is/VBZ
happening/VBG
in/IN
your/PRP$
sector/NN
?/.
What/WP
about/IN
your/PRP$
track/NN
record/NN
?/.
--/:
``/``
are/VBP
n't/RB
asked/VBN
of/IN
companies/NNS
coming/VBG
to/TO
market/NN
./.
Instead/RB
,/,
he/PRP
says/VBZ
,/,
most/JJS
investors/NNS
have/VBP
to/TO
rely/VB
on/IN
the/DT
rumor-happy/JJ
Indian/JJ
press/NN
./.
An/DT
example/NN
is/VBZ
the/DT
biggest/JJS
offering/NN
of/IN
them/PRP
all/DT
,/,
Larsen/NNP
&/CC
Toubro/NNP
's/POS
$/$
570/CD
million/CD
bond/NN
issue/NN
./.
The/DT
engineering/NN
company/NN
was/VBD
acquired/VBN
in/IN
a/DT
takeover/NN
earlier/RBR
this/DT
year/NN
by/IN
the/DT
giant/JJ
Reliance/NNP
textile/NN
group/NN
./.
Although/IN
Larsen/NNP
&/CC
Toubro/NNP
had/VBD
n't/RB
raised/VBN
money/NN
from/IN
the/DT
public/NN
in/IN
38/CD
years/NNS
,/,
its/PRP$
new/JJ
owners/NNS
frequently/RB
raise/VBP
funds/NNS
on/IN
the/DT
local/JJ
market/NN
./.
Reliance/NNP
floated/VBD
a/DT
$/$
357/CD
million/CD
petrochemical/NN
company/NN
in/IN
1988/CD
that/WDT
was/VBD
,/,
at/IN
the/DT
time/NN
,/,
the/DT
largest/JJS
public/JJ
issue/NN
in/IN
Indian/JJ
history/NN
./.
The/DT
media/NNS
has/VBZ
raised/VBN
questions/NNS
about/IN
Larsen/NNP
&/CC
Toubro/NNP
's/POS
issue/NN
,/,
pointing/VBG
out/RP
that/IN
it/PRP
exceeds/VBZ
the/DT
company/NN
's/POS
annual/JJ
sales/NNS
and/CC
its/PRP$
market/NN
capitalization/NN
./.
Even/JJ
stranger/NN
is/VBZ
the/DT
case/NN
of/IN
Usha/NNP
Rectifier/NNP
,/,
a/DT
semiconductor/NN
company/NN
with/IN
1988/CD
sales/NNS
of/IN
$/$
28/CD
million/CD
that/DT
's/POS
raising/VBG
$/$
270/CD
million/CD
to/TO
build/VB
an/DT
iron/NN
plant/NN
./.
Once/RB
the/DT
money/NN
is/VBZ
raised/VBN
,/,
it/PRP
is/VBZ
n't/RB
always/RB
certain/JJ
how/WRB
it/PRP
is/VBZ
used/VBN
./.
Larsen/NNP
&/CC
Toubro/NNP
,/,
for/IN
example/NN
,/,
says/VBZ
it/PRP
's/VBZ
raising/VBG
$/$
570/CD
million/CD
to/TO
use/VB
as/IN
supplier/NN
credit/NN
on/IN
large/JJ
engineering/NN
jobs/NNS
./.
Unlike/IN
other/JJ
companies/NNS
,/,
it/PRP
has/VBZ
n't/RB
pin-pointed/VBN
specific/JJ
projects/NNS
for/IN
the/DT
funds/NNS
./.
And/CC
even/RB
when/WRB
specific/JJ
projects/NNS
are/VBP
described/VBN
in/IN
prospectuses/NNS
,/,
the/DT
money/NN
often/RB
is/VBZ
used/VBN
elsewhere/RB
,/,
according/VBG
to/TO
analysts/NNS
./.
``/``
Someone/NN
must/MD
monitor/VB
where/WRB
the/DT
funds/NNS
are/VBP
deployed/VBN
,/,
''/''
says/VBZ
Mr./NNP
Dave/NNP
./.
Mr./NNP
Patel/NNP
agrees/VBZ
:/:
``/``
There/EX
is/VBZ
no/DT
proper/JJ
monitoring/NN
and/CC
screening/NN
of/IN
the/DT
use/NN
of/IN
these/DT
funds/NNS
./.
They/PRP
're/VBP
trying/VBG
to/TO
plug/VB
the/DT
various/JJ
loopholes/NNS
,/,
but/CC
they/PRP
're/VBP
totally/RB
unprepared/JJ
for/IN
this/DT
./.
''/''
Because/IN
of/IN
the/DT
large/JJ
amounts/NNS
of/IN
money/NN
being/VBG
raised/VBN
,/,
the/DT
loose/JJ
disclosure/NN
requirements/NNS
and/CC
the/DT
casual/JJ
monitoring/NN
of/IN
how/WRB
the/DT
money/NN
is/VBZ
used/VBN
,/,
some/DT
analysts/NNS
fear/VBP
that/IN
there/EX
could/MD
be/VB
a/DT
few/JJ
mega-crashes/NNS
,/,
which/WDT
could/MD
hurt/VB
market/NN
confidence/NN
far/RB
more/RBR
than/IN
the/DT
small/JJ
bankruptcies/NNS
that/WDT
followed/VBD
the/DT
boom/NN
of/IN
1986/CD
./.
The/DT
government/NN
insists/VBZ
that/IN
such/PDT
a/DT
possibility/NN
is/VBZ
low/JJ
./.
It/PRP
says/VBZ
that/IN
despite/IN
loose/JJ
regulation/NN
of/IN
the/DT
market/NN
itself/PRP
,/,
its/PRP$
longstanding/JJ
regulation/NN
of/IN
industry/NN
will/MD
prevent/VB
such/JJ
crashes/NNS
./.
T.T./NNP
Ram/NNP
Mohan/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Lion/NNP
Nathan/NNP
Ltd./NNP
,/,
a/DT
New/NNP
Zealand/NNP
brewing/NN
and/CC
retail/NN
concern/NN
,/,
said/VBD
Friday/NNP
that/IN
Bond/NNP
Corp/NNP
./.
Holdings/NNPS
Ltd./NNP
is/VBZ
``/``
committed/JJ
''/''
to/TO
a/DT
transaction/NN
whereby/WRB
Lion/NNP
Nathan/NNP
would/MD
acquire/VB
50/CD
%/NN
of/IN
Bond/NNP
's/POS
Australian/JJ
brewing/NN
assets/NNS
./.
Lion/NNP
Nathan/NNP
issued/VBD
a/DT
statement/NN
saying/VBG
it/PRP
is/VBZ
applying/VBG
to/TO
Australia/NNP
's/POS
National/NNP
Companies/NNPS
&/CC
Securities/NNPS
Commission/NNP
,/,
the/DT
nation/NN
's/POS
corporate/JJ
watchdog/NN
agency/NN
,/,
for/IN
a/DT
modification/NN
to/TO
takeover/NN
regulations/NNS
``/``
similar/JJ
to/TO
that/DT
obtained/VBN
by/IN
''/''
S.A./NNP
Brewing/NNP
Holdings/NNPS
Ltd/NNP
./.
SA/NNP
Brewing/NNP
,/,
an/DT
Australian/JJ
brewer/NN
,/,
last/JJ
Thursday/NNP
was/VBD
given/VBN
approval/NN
to/TO
acquire/VB
an/DT
option/NN
for/IN
up/IN
to/TO
20/CD
%/NN
of/IN
Bell/NNP
Resources/NNPS
Ltd./NNP
,/,
a/DT
unit/NN
of/IN
Bond/NNP
Corp/NNP
./.
Bell/NNP
Resources/NNPS
is/VBZ
acquiring/VBG
Bond/NNP
's/POS
brewing/NN
businesses/NNS
for/IN
2.5/CD
billion/CD
Australian/JJ
dollars/NNS
US$/$
1.9/CD
billion/CD
S.A./NNP
brewing/NN
would/MD
make/VB
a/DT
takeover/NN
offer/NN
for/IN
all/DT
of/IN
Bell/NNP
Resources/NNPS
if/IN
it/PRP
exercises/VBZ
the/DT
option/NN
,/,
according/VBG
to/TO
the/DT
commission/NN
./.
Bond/NNP
Corp./NNP
,/,
a/DT
brewing/NN
,/,
property/NN
,/,
media/NNS
and/CC
resources/NNS
company/NN
,/,
is/VBZ
selling/VBG
many/JJ
of/IN
its/PRP$
assets/NNS
to/TO
reduce/VB
its/PRP$
debts/NNS
./.
``/``
Lion/NNP
Nathan/NNP
has/VBZ
a/DT
concluded/VBN
contract/NN
with/IN
Bond/NNP
and/CC
Bell/NNP
Resources/NNP
,/,
''/''
said/VBD
Douglas/NNP
Myers/NNP
,/,
chief/JJ
executive/NN
of/IN
Lion/NNP
Nathan/NNP
./.
Finnair/NNP
,/,
Finland/NNP
's/POS
state-owned/JJ
airline/NN
,/,
joined/VBD
the/DT
wave/NN
of/IN
global/JJ
airline/NN
alliances/NNS
and/CC
signed/VBD
a/DT
wide-ranging/JJ
cooperation/NN
agreement/NN
with/IN
archrival/JJ
Scandinavian/NNP
Airlines/NNP
System/NNP
./.
Under/IN
the/DT
accord/NN
,/,
Finnair/NNP
agreed/VBD
to/TO
coordinate/VB
flights/NNS
,/,
marketing/NN
and/CC
other/JJ
functions/NNS
with/IN
SAS/NNP
,/,
the/DT
50%-state-owned/JJ
airline/NN
of/IN
Denmark/NNP
,/,
Norway/NNP
and/CC
Sweden/NNP
./.
The/DT
pact/NN
also/RB
calls/VBZ
for/IN
coordination/NN
between/IN
Finnair/NNP
and/CC
Switzerland/NNP
's/POS
national/JJ
carrier/NN
,/,
Swissair/NNP
,/,
with/IN
which/WDT
SAS/NNP
entered/VBD
a/DT
similar/JJ
alliance/NN
last/JJ
month/NN
./.
Finnair/NNP
and/CC
SAS/NNP
said/VBD
they/PRP
plan/VBP
to/TO
swap/VB
stakes/NNS
in/IN
each/DT
other/JJ
./.
Neither/DT
disclosed/VBD
details/NNS
pending/VBG
board/NN
meetings/NNS
next/IN
month/NN
./.
Officials/NNS
hinted/VBD
,/,
however/RB
,/,
that/IN
SAS/NNP
would/MD
take/VB
a/DT
stake/NN
of/IN
at/IN
least/JJS
6/CD
%/NN
in/IN
Finnair/NNP
,/,
valued/VBN
at/IN
about/RB
$/$
40/CD
million/CD
at/IN
current/JJ
market/NN
prices/NNS
./.
Finnair/NNP
would/MD
receive/VB
SAS/NNP
shares/NNS
valued/VBN
at/IN
the/DT
same/JJ
amount/NN
,/,
officials/NNS
said/VBD
./.
General/NNP
Motors/NNP
Corp./NNP
and/CC
Ford/NNP
Motor/NNP
Co./NNP
are/VBP
now/RB
going/VBG
head/NN
to/TO
head/NN
in/IN
the/DT
markets/NNS
for/IN
shares/NNS
of/IN
Jaguar/NNP
PLC/NNP
,/,
as/IN
GM/NNP
got/VBD
early/JJ
clearance/NN
from/IN
the/DT
Federal/NNP
Trade/NNP
Commission/NNP
to/TO
boost/VB
its/PRP$
stake/NN
in/IN
the/DT
British/JJ
luxury/NN
car/NN
maker/NN
./.
GM/NNP
confirmed/VBD
Friday/NNP
that/IN
it/PRP
received/VBD
permission/NN
late/RB
Thursday/NNP
from/IN
U.S./NNP
antitrust/JJ
regulators/NNS
to/TO
increase/VB
its/PRP$
Jaguar/NNP
holdings/NNS
past/IN
the/DT
$/$
15/CD
million/CD
level/NN
./.
Ford/NNP
got/VBD
a/DT
similar/JJ
go-ahead/NN
earlier/RBR
in/IN
October/NNP
,/,
and/CC
on/IN
Friday/NNP
,/,
Jaguar/NNP
announced/VBD
that/IN
the/DT
No./JJ
2/CD
U.S./NNP
auto/NN
maker/NN
had/VBD
raised/VBN
its/PRP$
stake/NN
to/TO
13.2/CD
%/NN
,/,
or/CC
24.2/CD
million/CD
shares/NNS
,/,
from/IN
12.4/CD
%/NN
earlier/RBR
in/IN
the/DT
week/NN
./.
A/DT
spokesman/NN
for/IN
GM/NNP
,/,
the/DT
No./NN
1/CD
auto/NN
maker/NN
,/,
declined/VBD
to/TO
say/VB
how/WRB
many/JJ
Jaguar/NNP
shares/NNS
that/DT
company/NN
owns/VBZ
./.
In/IN
late/JJ
trading/NN
Friday/NNP
,/,
Jaguar/NNP
shares/NNS
bucked/VBD
the/DT
downward/JJ
tide/NN
in/IN
London/NNP
's/POS
stock/NN
market/NN
and/CC
rose/VBD
five/CD
pence/NNS
to/TO
725/CD
pence/NNS
$/$
11.44/CD
Trading/NN
volume/NN
was/VBD
a/DT
moderately/RB
heavy/JJ
3.1/CD
million/CD
shares/NNS
./.
In/IN
the/DT
U.S./NNP
,/,
Jaguar/NNP
's/POS
American/JJ
depositary/NN|JJ
receipts/NNS
were/VBD
among/IN
the/DT
most/RBS
active/JJ
issues/NNS
Friday/NNP
in/IN
national/JJ
over-the-counter/JJ
trading/NN
where/WRB
they/PRP
closed/VBD
at/IN
$/$
11.625/CD
each/DT
,/,
up/RB
62.5/CD
cents/NNS
./.
Analysts/NNS
expect/VBP
that/IN
the/DT
two/CD
U.S./NNP
auto/NN
giants/NNS
will/MD
move/VB
quickly/RB
to/TO
buy/VB
up/RP
15/CD
%/NN
stakes/NNS
in/IN
Jaguar/NNP
,/,
setting/VBG
up/RP
a/DT
potential/JJ
bidding/NN
war/NN
for/IN
the/DT
prestigious/JJ
Jaguar/NNP
brand/NN
./.
British/JJ
government/NN
restrictions/NNS
prevent/VBP
any/DT
single/JJ
shareholder/NN
from/IN
going/VBG
beyond/IN
15/CD
%/NN
before/IN
the/DT
end/NN
of/IN
1990/CD
without/IN
government/NN
permission/NN
./.
The/DT
British/JJ
government/NN
,/,
which/WDT
owned/VBD
Jaguar/NN
until/IN
1984/CD
,/,
still/RB
holds/VBZ
a/DT
controlling/VBG
``/``
golden/JJ
share/NN
''/''
in/IN
the/DT
company/NN
./.
With/IN
the/DT
golden/JJ
share/NN
as/IN
protection/NN
,/,
Jaguar/NNP
officials/NNS
have/VBP
rebuffed/VBN
Ford/NNP
's/POS
overtures/NNS
,/,
and/CC
moved/VBN
instead/RB
to/TO
forge/VB
an/DT
alliance/NN
with/IN
GM/NNP
./.
Jaguar/NNP
officials/NNS
have/VBP
indicated/VBN
they/PRP
are/VBP
close/RB
to/TO
wrapping/VBG
up/RP
a/DT
friendly/JJ
alliance/NN
with/IN
GM/NNP
that/WDT
would/MD
preserve/VB
Jaguar/NNP
's/POS
independence/NN
,/,
but/CC
no/DT
deal/NN
has/VBZ
been/VBN
announced/VBN
./.
Ford/NNP
,/,
on/IN
the/DT
other/JJ
hand/NN
,/,
has/VBZ
said/VBD
it/PRP
's/VBZ
willing/JJ
to/TO
bid/VB
for/IN
all/DT
of/IN
Jaguar/NNP
,/,
despite/IN
the/DT
objections/NNS
of/IN
Jaguar/NNP
chairman/NN
Sir/NNP
John/NNP
Egan/NNP
./.
Analysts/NNS
continued/VBD
to/TO
speculate/VB
late/RB
last/JJ
week/NN
that/IN
Ford/NNP
may/MD
try/VB
to/TO
force/VB
the/DT
issue/NN
by/IN
calling/VBG
for/IN
a/DT
special/JJ
shareholder/NN
's/POS
meeting/NN
and/CC
urging/VBG
that/IN
the/DT
government/NN
and/CC
Jaguar/NNP
holders/NNS
remove/VB
the/DT
barriers/NNS
to/TO
a/DT
full/JJ
bidding/NN
contest/NN
before/IN
December/NNP
1990/CD
./.
But/CC
a/DT
Ford/NNP
spokeswoman/NN
in/IN
Dearborn/NNP
said/VBD
Friday/NNP
the/DT
company/NN
has/VBZ
n't/RB
requested/VBN
such/PDT
a/DT
meeting/NN
yet/RB
./.
Individuals/NNS
close/RB
to/TO
the/DT
situation/NN
believe/VBP
Ford/NNP
officials/NNS
will/MD
seek/VB
a/DT
meeting/NN
this/DT
week/NN
with/IN
Sir/NNP
John/NNP
to/TO
outline/VB
their/PRP$
proposal/NN
for/IN
a/DT
full/JJ
bid/NN
./.
Any/DT
discussions/NNS
with/IN
Ford/NNP
could/MD
postpone/VB
the/DT
Jaguar-GM/NNP
deal/NN
,/,
headed/VBN
for/IN
completion/NN
within/IN
the/DT
next/JJ
two/CD
weeks/NNS
./.
The/DT
GM/NNP
agreement/NN
is/VBZ
expected/VBN
to/TO
retain/VB
Jaguar/NNP
's/POS
independence/NN
by/IN
involving/VBG
an/DT
eventual/JJ
30/CD
%/NN
stake/NN
for/IN
the/DT
U.S./NNP
auto/NN
giant/NN
as/RB
well/RB
as/IN
joint/JJ
manufacturing/NN
and/CC
marketing/NN
ventures/NNS
./.
Jaguar/NNP
and/CC
GM/NNP
hope/VBP
to/TO
win/VB
Jaguar/NNP
shareholders/NNS
approval/NN
for/IN
the/DT
accord/NN
partly/RB
by/IN
structuring/VBG
it/PRP
in/IN
a/DT
way/NN
that/WDT
would/MD
n't/RB
preclude/VB
a/DT
full/JJ
Ford/NNP
bid/NN
once/RB
the/DT
golden/JJ
share/NN
expires/VBZ
./.
``/``
There/EX
's/VBZ
either/CC
a/DT
minority/NN
stake/NN
package/NN
capable/JJ
of/IN
getting/VBG
Jaguar/NNP
shareholder/NN
approval/NN
or/CC
there/EX
is/VBZ
n't/RB
,/,
''/''
said/VBD
one/CD
knowledgeable/JJ
individual/NN
./.
``/``
If/IN
there/EX
is/VBZ
n't/RB
,/,
{/(
the/DT
deal/NN
shareholders/NNS
./.
Union/NN
sentiment/NN
also/RB
could/MD
influence/VB
shareholder/NN
reaction/NN
to/TO
a/DT
Jaguar-GM/NNP
accord/NN
./.
GM/NNP
's/POS
U.K./NNP
unit/NN
holds/VBZ
crucial/JJ
talks/NNS
today/NN
with/IN
union/NN
officials/NNS
about/IN
its/PRP$
consideration/NN
of/IN
an/DT
Ellesmere/NNP
Port/NNP
site/NN
for/IN
its/PRP$
first/JJ
major/JJ
engine/NN
plant/NN
in/IN
Britain/NNP
./.
One/CD
auto-industry/NN
union/NN
leader/NN
said/VBD
,/,
``/``
If/IN
they/PRP
try/VBP
to/TO
build/VB
it/PRP
somewhere/RB
else/RB
{/(
in/IN
Europe/NNP
the/DT
U.K./NNP
,/,
they/PRP
are/VBP
going/VBG
to/TO
be/VB
in/IN
big/JJ
trouble/NN
''/''
with/IN
unionists/NNS
over/IN
any/DT
Jaguar/NNP
deal/NN
./.
These/DT
are/VBP
the/DT
last/JJ
words/NNS
Abbie/NNP
Hoffman/NNP
ever/RB
uttered/VBD
,/,
more/RBR
or/CC
less/RBR
,/,
before/IN
he/PRP
killed/VBD
himself/PRP
./.
And/CC
You/PRP
Are/VBP
There/RB
,/,
sort/NN
of/IN
:/:
ABBIE/NNP
:/:
``/``
I/PRP
'm/VBP
OK/JJ
,/,
Jack/NNP
./.
I/PRP
'm/VBP
OK/JJ
./.
''/''
(/(
listening/VBG
)/)
``/``
Yeah/UH
./.
I/PRP
'm/VBP
out/IN
of/IN
bed/NN
./.
I/PRP
got/VBP
my/PRP$
feet/NNS
on/IN
the/DT
floor/NN
./.
Yeah/UH
./.
Two/CD
feet/NNS
./.
I/PRP
'll/MD
see/VB
you/PRP
Wednesday/NNP
?/.
.../:
Thursday/NNP
./.
''/''
He/PRP
listens/VBZ
impassively/RB
./.
ABBIE/NNP
cont'd./VBN
I/PRP
'll/MD
always/RB
be/VB
with/IN
you/PRP
,/,
Jack/NNP
./.
Do/VB
n't/RB
worry/VB
./.
''/''
Abbie/NNP
lies/VBZ
back/RP
and/CC
leaves/VBZ
the/DT
frame/NN
empty/JJ
./.
Of/IN
course/NN
that/DT
was/VBD
n't/RB
the/DT
actual/JJ
conversation/NN
the/DT
late/JJ
anti-war/JJ
activist/NN
,/,
protest/NN
leader/NN
and/CC
founder/NN
of/IN
the/DT
Yippies/NNPS
ever/RB
had/VBD
with/IN
his/PRP$
brother/NN
./.
It/PRP
's/VBZ
a/DT
script/NN
pieced/VBN
together/RB
from/IN
interviews/NNS
by/IN
CBS/NNP
News/NNP
for/IN
a/DT
re-enactment/NN
,/,
a/DT
dramatic/JJ
rendering/NN
by/IN
an/DT
actor/NN
of/IN
Mr./NNP
Hoffman/NNP
's/VBZ
ultimately/RB
unsuccessful/JJ
struggle/NN
with/IN
depression/NN
./.
The/DT
segment/NN
is/VBZ
soon/RB
to/TO
be/VB
broadcast/VBN
on/IN
the/DT
CBS/NNP
News/NNP
series/NN
``/``
Saturday/NNP
Night/NNP
With/IN
Connie/NNP
Chung/NNP
,/,
''/''
thus/RB
further/RB
blurring/VBG
the/DT
distinction/NN
between/IN
fiction/NN
and/CC
reality/NN
in/IN
TV/NN
news/NN
./.
It/PRP
is/VBZ
the/DT
New/NNP
Journalism/NNP
come/VBN
to/TO
television/NN
./.
Ms./NNP
Chung/NNP
's/POS
program/NN
is/VBZ
just/RB
one/CD
of/IN
several/JJ
network/NN
shows/NNS
(/(
and/CC
many/JJ
more/JJR
in/IN
syndication/NN
that/WDT
rely/VBP
on/IN
the/DT
controversial/JJ
technique/NN
of/IN
reconstructing/VBG
events/NNS
,/,
using/VBG
actors/NNS
who/WP
are/VBP
supposed/VBN
to/TO
resemble/VB
real/JJ
people/NNS
,/,
living/JJ
and/CC
dead/JJ
./.
Ms./NNP
Chung/NNP
's/POS
,/,
however/RB
,/,
is/VBZ
said/VBN
to/TO
be/VB
the/DT
only/JJ
network/NN
news/NN
program/NN
in/IN
history/NN
to/TO
employ/VB
casting/NN
directors/NNS
./.
Abbie/NNP
Hoffman/NNP
in/IN
this/DT
case/NN
is/VBZ
to/TO
be/VB
played/VBN
by/IN
Hollywood/NNP
actor/NN
Paul/NNP
Lieber/NNP
,/,
who/WP
is/VBZ
n't/RB
new/JJ
to/TO
the/DT
character/NN
./.
He/PRP
was/VBD
Mr./NNP
Hoffman/NNP
in/IN
a/DT
1979/CD
Los/NNP
Angeles/NNP
production/NN
of/IN
a/DT
play/NN
called/VBN
``/``
The/DT
Chicago/NNP
Conspiracy/NNP
Trial/NNP
./.
''/''
Television/NN
news/NN
,/,
of/IN
course/NN
,/,
has/VBZ
always/RB
been/VBN
part/NN
show-biz/NN
./.
Broadcasters/NNS
have/VBP
a/DT
healthy/JJ
appreciation/NN
of/IN
the/DT
role/NN
entertainment/NN
values/NNS
play/VBP
in/IN
captivating/VBG
an/DT
audience/NN
./.
But/CC
,/,
as/IN
CBS/NNP
Broadcast/NNP
Group/NNP
president/NN
Howard/NNP
Stringer/NNP
puts/VBZ
it/PRP
,/,
the/DT
network/NN
now/RB
needs/VBZ
to/TO
``/``
broaden/VB
the/DT
horizons/NNS
of/IN
nonfiction/NN
television/NN
,/,
and/CC
that/DT
includes/VBZ
some/DT
experimentation/NN
./.
''/''
Since/IN
its/PRP$
premiere/NN
Sept./NNP
16/CD
,/,
the/DT
show/NN
on/IN
which/WDT
Ms./NNP
Chung/NNP
appears/VBZ
has/VBZ
used/VBN
an/DT
actor/NN
to/TO
portray/VB
the/DT
Rev./NNP
Vernon/NNP
Johns/NNP
,/,
a/DT
civil-rights/NNS
leader/NN
,/,
and/CC
one/NN
to/TO
play/VB
a/DT
teenage/JJ
drug/NN
dealer/NN
./.
It/PRP
has/VBZ
depicted/VBN
the/DT
bombing/NN
of/IN
Pan/NNP
Am/VBP
flight/NN
103/CD
over/IN
the/DT
Scottish/JJ
town/NN
of/IN
Lockerbie/NNP
./.
On/IN
Oct./NNP
21/CD
,/,
it/PRP
did/VBD
a/DT
rendition/NN
of/IN
the/DT
kidnapping/NN
and/CC
imprisonment/NN
of/IN
Associated/NNP
Press/NNP
correspondent/NN
Terry/NNP
Anderson/NNP
,/,
who/WP
was/VBD
abducted/NN
in/IN
March/NNP
1985/CD
and/CC
is/VBZ
believed/VBN
to/TO
be/VB
held/VBN
in/IN
Lebanon/NNP
./.
The/DT
production/NN
had/VBD
actors/NNS
playing/VBG
Mr./NNP
Anderson/NNP
and/CC
former/JJ
hostages/NNS
David/NNP
Jacobsen/NNP
,/,
the/DT
Rev./NNP
Benjamin/NNP
Weir/NNP
and/CC
Father/NNP
Lawrence/NNP
Jenco/NNP
./.
ABC/NNP
News/NNP
has/VBZ
similarly/RB
branched/VBN
out/RP
into/IN
entertainment/NN
gimmickry/NN
./.
``/``
Prime/NNP
Time/NNP
Live/NNP
,/,
''/''
a/DT
new/JJ
show/NN
this/DT
season/NN
featuring/VBG
Sam/NNP
Donaldson/NNP
and/CC
Diane/NNP
Sawyer/NNP
,/,
has/VBZ
a/DT
studio/NN
audience/NN
that/WDT
applauds/VBZ
and/CC
that/WDT
one/CD
night/NN
the/DT
embarrassment/NN
of/IN
the/DT
network/NN
the/DT
camera/NN
like/IN
the/DT
crowd/NN
on/IN
``/``
Let/NNP
's/NNP
Make/NNP
a/NNP
Deal/NNP
./.
''/''
(/(
ABC/NNP
stops/VBZ
short/RB
of/IN
using/VBG
an/DT
``/``
applause/NN
''/''
sign/NN
and/CC
a/DT
comic/NN
to/TO
warm/VB
up/RP
the/DT
audience/NN
./.
The/DT
stars/NNS
do/VBP
that/DT
themselves/PRP
./.
NBC/NNP
News/NNP
has/VBZ
produced/VBN
three/CD
episodes/NNS
of/IN
an/DT
occasional/JJ
series/NN
produced/VBN
by/IN
Sid/NNP
Feders/NNP
called/VBD
``/``
Yesterday/NNP
,/,
Today/NNP
and/NNP
Tomorrow/NNP
,/,
''/''
starring/VBG
Maria/NNP
Shriver/NNP
,/,
Chuck/NNP
Scarborough/NNP
and/CC
Mary/NNP
Alice/NNP
Williams/NNP
,/,
that/WDT
also/RB
gives/VBZ
work/NN
to/TO
actors/NNS
./.
Call/VB
it/PRP
a/DT
fad/NN
./.
Or/CC
call/VB
it/PRP
the/DT
wave/NN
of/IN
the/DT
future/NN
./.
NBC/NNP
's/POS
re-creations/NNS
are/VBP
produced/VBN
by/IN
Cosgrove-Meurer/NNP
Productions/NNP
,/,
which/WDT
also/RB
makes/VBZ
the/DT
successful/JJ
prime-time/NN
NBC/NNP
Entertainment/NNP
series/NN
``/``
Unsolved/NNP
Mysteries/NNPS
./.
''/''
The/DT
marriage/NN
of/IN
news/NN
and/CC
theater/NN
,/,
if/IN
not/RB
exactly/RB
inevitable/JJ
,/,
has/VBZ
been/VBN
consummated/VBN
nonetheless/RB
./.
News/NN
programs/NNS
,/,
particularly/RB
if/IN
they/PRP
score/VBP
well/RB
in/IN
the/DT
ratings/NNS
,/,
appeal/NN
to/TO
the/DT
networks/NNS
'/POS
cost-conscious/JJ
corporate/JJ
parents/NNS
because/IN
they/PRP
are/VBP
so/RB
much/RB
less/RBR
expensive/JJ
to/TO
produce/VB
than/IN
an/DT
entertainment/NN
show/NN
is/VBZ
--/:
somewhere/RB
between/IN
$/$
400,000/CD
and/CC
$/$
500,000/CD
for/IN
a/DT
one-hour/JJ
program/NN
./.
Entertainment/NN
shows/NNS
tend/VBP
to/TO
cost/VB
twice/RB
that/DT
./.
Re-enactments/NNS
have/VBP
been/VBN
used/VBN
successfully/RB
for/IN
several/JJ
seasons/NNS
on/IN
such/JJ
syndicated/VBN
``/``
tabloid/JJ
TV/NN
''/''
shows/NNS
as/IN
``/``
A/NNP
Current/NNP
Affair/NNP
,/,
''/''
which/WDT
is/VBZ
produced/VBN
by/IN
the/DT
Fox/NNP
Broadcasting/NNP
Co./NNP
unit/NN
of/IN
Rupert/NNP
Murdoch/NNP
's/POS
News/NNP
Corp/NNP
./.
That/DT
show/NN
,/,
whose/WP$
host/NN
is/VBZ
Ms./NNP
Chung/NNP
's/POS
husband/NN
,/,
Maury/NNP
Povich/NNP
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sex/NN
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Robert/NNP
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murder/NN
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,/,
the/DT
Rob/NNP
Lowe/NNP
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,/,
what/WP
have/VB
you/PRP
./.
Gerald/NNP
Stone/NNP
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the/DT
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``/``
A/NNP
Current/NNP
Affair/NNP
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''/''
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``/``
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the/DT
news/NN
./.
''/''
Nowhere/RB
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CBS/NNP
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``/``
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area/NN
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``/``
Saturday/NNP
Night/NNP
With/IN
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Chung/NNP
./.
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Wentworth/NNP
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Anderson/NNP
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./.
James/NNP
Earl/NNP
Jones/NNP
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Rev./NNP
Mr./NNP
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./.
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''/''
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``/``
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''/''
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Bill/NNP
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Connie/NNP
Chung/NNP
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``/``
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Brown/NNP
''/''
)/)
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CBS/NNP
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1979/CD
Three/NNP
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Island/NNP
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Middletown/NNP
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Pa./NNP
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./.
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the/DT
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10,000/CD
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200/CD
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./.
On/IN
Oct./NNP
20/CD
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``/``
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,/,
''/''
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Sukle/NNP
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Middletown/NNP
./.
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''/''
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:/:
``/``
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./.
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./.
''/''
Though/IN
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Hollywood/NNP
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./.
Some/DT
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squeamish/JJ
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./.
So/IN
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And/CC
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./.
In/IN
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``/``
Saturday/NNP
Night/NNP
With/NNP
Connie/NNP
Chung/NNP
,/,
''/''
Tom/NNP
Shales/NNP
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``/``
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.../:
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./.
''/''
Re-creating/VBG
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in/IN
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,/,
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S./NNP
Salant/NNP
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NBC/NNP
News/NNP
President/NNP
Reuven/NNP
Frank/NNP
,/,
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Walter/NNP
Cronkite/NNP
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the/DT
Columbia/NNP
University/NNP
Graduate/NNP
School/NNP
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Journalism/NNP
,/,
Joan/NNP
Konner/NNP
./.
Says/VBZ
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:/:
``/``
Once/IN
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,/,
it/PRP
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,/,
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has/VBZ
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place/NN
on/IN
a/DT
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news/NN
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.../:
./.
They/PRP
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./.
Never/RB
./.
''/''
Criticism/NN
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the/DT
Abbie/NNP
Hoffman/NNP
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who/WP
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./.
That/DT
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15/CD
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,/,
Johanna/NNP
Lawrenson/NNP
,/,
as/RB
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his/PRP$
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,/,
Anita/NNP
./.
Both/DT
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CBS/NNP
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Mr./NNP
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``/``
This/DT
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''/''
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Lawrenson/NNP
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./.
``/``
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./.
''/''
Mrs./NNP
Hoffman/NNP
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``/``
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./.
It/PRP
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one/CD
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./.
''/''
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Hoffman/NNP
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his/PRP$
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,/,
Phyllis/NNP
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Mr./NNP
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Solebury/NNP
Township/NNP
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Pa/NNP
./.
Also/RB
Jonathan/NNP
Silvers/NNP
,/,
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Mr./NNP
Hoffman/NNP
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./.
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,/,
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some/DT
good/NN
./.
''/''
The/DT
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producer/NN
of/IN
``/``
Saturday/NNP
Night/NNP
With/IN
Connie/NNP
Chung/NNP
,/,
''/''
Andrew/NNP
Lack/NNP
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in/IN
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./.
``/``
I/PRP
do/VBP
n't/RB
talk/VB
about/IN
my/PRP$
work/NN
,/,
''/''
he/PRP
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./.
The/DT
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CBS/NNP
News/NNP
,/,
David/NNP
W./NNP
Burke/NNP
,/,
did/VBD
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return/JJ
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./.
One/CD
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the/DT
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CBS/NNP
News/NNP
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comment/VB
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a/DT
``/``
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progress/NN
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''/''
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``/``
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''/''
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the/DT
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Ms./NNP
Lawrenson/NNP
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Mr./NNP
Hoffman/NNP
's/POS
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./.
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CBS/NNP
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a/DT
round-table/JJ
discussion/NN
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Mr./NNP
Hoffman/NNP
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./.
Mr./NNP
Lieber/NNP
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Mr./NNP
Hoffman/NNP
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``/``
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I/PRP
admired/VBD
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''/''
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that/IN
his/PRP$
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./.
The/DT
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he/PRP
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,/,
did/VBD
a/DT
good/JJ
job/NN
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depicting/VBG
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``/``
who/WP
had/VBD
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but/CC
who/WP
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a/DT
manic-depressive/NN
./.
''/''
Dentsu/NNP
Inc./NNP
,/,
the/DT
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the/DT
Japanese/JJ
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,/,
is/VBZ
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its/PRP$
sights/NNS
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expansion/NN
./.
Last/JJ
year/NN
,/,
Dentsu/NNP
started/VBD
HDM/NNP
,/,
a/DT
joint/JJ
network/NN
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U.S./NNP
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Young/NNP
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Rubicam/NNP
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Eurocom/NNP
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France/NNP
./.
A/DT
few/JJ
months/NNS
ago/RB
,/,
Dentsu/NNP
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69/CD
%/NN
of/IN
Australian/JJ
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Fortune/NNP
Communication/NNP
Holdings/NNS
Ltd./NNP
for/IN
5.9/CD
million/CD
Australian/JJ
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US$/$
4.6/CD
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Dentsu/NNP
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U.S./NNP
subsidiaries/NNS
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./.
Now/RB
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the/DT
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which/WDT
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Japan/NNP
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acquisition/NN
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an/DT
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network/NN
in/IN
the/DT
U.S./NNP
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Europe/NNP
./.
What/WP
is/VBZ
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Dentsu/NNP
's/POS
international/JJ
expansion/NN
largely/RB
is/VBZ
the/DT
need/NN
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keep/VB
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its/PRP$
Japanese/JJ
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as/IN
they/PRP
grow/VBP
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the/DT
U.S./NNP
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Europe/NNP
./.
``/``
If/IN
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do/VBP
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something/NN
.../:
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wo/MD
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able/JJ
to/TO
catch/VB
up/RP
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demand/NN
,/,
''/''
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Dentsu/NNP
spokesman/NN
./.
``/``
Our/PRP$
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effective/JJ
method/NN
./.
''/''
Last/JJ
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,/,
Dentsu/NNP
's/POS
foreign/JJ
business/NN
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for/IN
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the/DT
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is/VBZ
aiming/VBG
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20/CD
%/NN
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the/DT
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future/NN
./.
So/RB
far/RB
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it/PRP
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cautious/JJ
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./.
For/IN
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spokesman/NN
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Dentsu/NNP
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the/DT
troubled/JJ
British/JJ
marketing/NN
group/NN
Saatchi/NNP
&/CC
Saatchi/NNP
PLC/NNP
./.
But/CC
he/PRP
said/VBD
Dentsu/NNP
has/VBZ
n't/RB
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Saatchi/NNP
./.
Though/IN
Dentsu/NNP
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plans/NNS
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deadlines/NNS
,/,
it/PRP
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laying/VBG
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growth/NN
./.
It/PRP
is/VBZ
setting/VBG
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a/DT
special/JJ
team/NN
in/IN
charge/NN
of/IN
international/JJ
markets/NNS
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training/VBG
workers/NNS
to/TO
do/VB
business/NN
abroad/RB
./.
For/IN
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March/NNP
31/CD
,/,
Dentsu/NNP
sales/NNS
rose/VBD
19/CD
%/NN
to/TO
$/$
8.9/CD
billion/CD
from/IN
$/$
7.5/CD
billion/CD
,/,
and/CC
net/JJ
income/NN
jumped/VBD
59/CD
%/NN
to/TO
$/$
102/CD
million/CD
from/IN
$/$
64/CD
million/CD
./.
Dentsu/NNP
's/POS
billings/NNS
last/JJ
year/NN
were/VBD
larger/JJR
than/IN
those/DT
of/IN
Young/NNP
&/CC
Rubicam/NNP
,/,
the/DT
world/NN
's/POS
second-largest/JJ
ad/NN
agency/NN
,/,
according/VBG
to/TO
a/DT
survey/NN
by/IN
the/DT
publication/NN
Advertising/NNP
Age/NNP
./.
But/CC
success/NN
overseas/RB
in/IN
unfamiliar/JJ
markets/NNS
could/MD
be/VB
trickier/JJR
than/IN
for/IN
other/JJ
industries/NNS
such/JJ
as/IN
manufacturers/NNS
./.
On/IN
its/PRP$
own/JJ
,/,
Dentsu/NNP
's/POS
muscle/NN
in/IN
Japan/NNP
may/MD
count/VB
for/IN
little/RB
in/IN
major/JJ
foreign/JJ
markets/NNS
when/WRB
seeking/VBG
non-Japanese/JJ
clients/NNS
./.
Thus/RB
,/,
an/DT
acquisition/NN
may/MD
prove/VB
the/DT
necessary/JJ
course/NN
./.
But/CC
Japanese/JJ
agencies/NNS
are/VBP
cautious/JJ
about/IN
expanding/VBG
abroad/RB
because/IN
client/NN
relationships/NNS
are/VBP
different/JJ
./.
Japanese/JJ
agencies/NNS
do/VBP
business/NN
with/IN
rival/JJ
clients/NNS
in/IN
the/DT
same/JJ
industry/NN
,/,
a/DT
practice/NN
``/``
that/WDT
would/MD
be/VB
unacceptable/JJ
by/IN
traditional/JJ
Western/JJ
conflict/NN
rules/NNS
,/,
''/''
says/VBZ
Roy/NNP
Warman/NNP
,/,
the/DT
London/NNP
chief/JJ
executive/NN
of/IN
Saatchi/NNP
&/CC
Saatchi/NNP
's/POS
communications/NNS
division/NN
./.
Although/IN
acquiring/VBG
a/DT
foreign/JJ
company/NN
would/MD
expand/VB
Japanese/JJ
advertising/NN
agencies/NNS
'/POS
business/NN
to/TO
foreign/JJ
clients/NNS
,/,
many/JJ
clients/NNS
would/MD
also/RB
be/VB
Japanese/JJ
companies/NNS
expanding/VBG
overseas/RB
,/,
says/VBZ
the/DT
Dentsu/NNP
spokesman/NN
./.
But/CC
the/DT
different/JJ
business/NN
system/NN
would/MD
make/VB
it/PRP
hard/JJ
for/IN
Dentsu/NNP
to/TO
provide/VB
these/DT
Japanese/JJ
companies/NNS
the/DT
same/JJ
kind/NN
of/IN
services/NNS
they/PRP
do/VBP
in/IN
Japan/NNP
./.
Ciba-Geigy/NNP
AG/NNP
,/,
the/DT
big/JJ
Swiss/JJ
chemicals/NNS
company/NN
,/,
said/VBD
that/IN
it/PRP
agreed/VBD
in/IN
a/DT
letter/NN
of/IN
intent/NN
with/IN
Corning/NNP
Inc./NNP
to/TO
acquire/VB
Corning/NNP
's/POS
50/CD
%/NN
share/NN
of/IN
Ciba/NNP
Corning/NNP
Diagnostics/NNPS
Corp./NNP
,/,
based/VBN
in/IN
Medfield/NNP
,/,
Mass/NNP
./.
Ciba/NNP
Corning/NNP
,/,
which/WDT
had/VBD
been/VBN
a/DT
50-50/JJ
venture/NN
between/IN
Basel-based/JJ
Ciba-Geigy/NNP
and/CC
Corning/NNP
,/,
has/VBZ
annual/JJ
sales/NNS
of/IN
about/RB
$/$
300/CD
million/CD
,/,
the/DT
announcement/NN
said/VBD
./.
Terms/NNS
of/IN
the/DT
transaction/NN
were/VBD
n't/RB
disclosed/VBN
./.
Ciba/NNP
Corning/NNP
makes/VBZ
clinical/JJ
diagnostics/NNS
systems/NNS
and/CC
related/JJ
products/NNS
for/IN
the/DT
medical-care/NN
industry/NN
./.
The/DT
announcement/NN
said/VBD
the/DT
acquisition/NN
should/MD
be/VB
completed/VBN
by/IN
December/NNP
after/IN
a/DT
definitive/JJ
agreement/NN
is/VBZ
completed/VBN
and/CC
regulatory/JJ
approval/NN
is/VBZ
received/VBN
./.
Ciba-Geigy/NNP
intends/VBZ
to/TO
develop/VB
the/DT
Ciba/NNP
Corning/NNP
unit/NN
into/IN
a/DT
``/``
substantial/JJ
business/NN
,/,
''/''
making/VBG
the/DT
unit/NN
an/DT
``/``
integral/JJ
part/NN
''/''
of/IN
Ciba-Geigy/NNP
's/POS
``/``
comprehensive/JJ
disease/NN
management/NN
concept/NN
./.
''/''
The/DT
NBC/NNP
network/NN
canceled/VBD
its/PRP$
first/JJ
new/JJ
series/NN
of/IN
the/DT
fall/NN
TV/NN
season/NN
,/,
killing/VBG
Mel/NNP
Brooks/NNP
's/POS
wacky/JJ
hotel/NN
comedy/NN
``/``
The/NNP
Nutt/NNP
House/NNP
./.
''/''
The/DT
show/NN
,/,
one/CD
of/IN
five/CD
new/JJ
NBC/NNP
series/NN
,/,
is/VBZ
the/DT
second/JJ
casualty/NN
of/IN
the/DT
three/CD
networks/NNS
so/RB
far/RB
this/DT
fall/NN
./.
Last/JJ
week/NN
CBS/NNP
Inc./NNP
canceled/VBD
``/``
The/NNP
People/NNP
Next/NNP
Door/NNP
./.
''/''
NBC/NNP
's/POS
comedy/NN
had/VBD
aired/VBN
Wednesdays/NNS
at/IN
9:30/CD
p.m./NN
and/CC
in/IN
five/CD
outings/NNS
had/VBD
drawn/VBN
an/DT
average/NN
of/IN
only/JJ
13.2/CD
%/NN
of/IN
homes/NNS
,/,
lagging/VBG
behind/IN
the/DT
Jamie/NNP
Lee/NNP
Curtis/NNP
comedy/NN
``/``
Anything/NNP
But/NNP
Love/NNP
''/''
on/IN
ABC/NNP
and/CC
CBS/NNP
's/POS
one-hour/JJ
drama/NN
``/``
Jake/NNP
and/NNP
the/NNP
Fatman/NNP
./.
''/''
NBC/NNP
,/,
a/DT
unit/NN
of/IN
General/NNP
Electric/NNP
Co./NNP
,/,
has/VBZ
n't/RB
decided/VBN
on/IN
a/DT
permanent/JJ
replacement/NN
for/IN
the/DT
canceled/VBN
series/NN
./.
John/NNP
Labatt/NNP
Ltd./NNP
said/VBD
it/PRP
plans/VBZ
a/DT
private/JJ
placement/NN
of/IN
150/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
127.5/CD
million/CD
preferred/JJ
shares/NNS
,/,
to/TO
be/VB
completed/VBN
around/IN
Nov./NNP
1/CD
./.
Proceeds/NNS
will/MD
be/VB
used/VBN
to/TO
reduce/VB
short-term/JJ
debt/NN
at/IN
the/DT
beer/NN
and/CC
food/NN
concern/NN
,/,
said/VBD
Robert/NNP
Vaux/NNP
,/,
vice/NN
president/NN
,/,
finance/NN
./.
The/DT
preferred/JJ
shares/NNS
will/MD
carry/VB
a/DT
floating/JJ
annual/JJ
dividend/NN
equal/JJ
to/TO
72/CD
%/NN
of/IN
the/DT
30-day/JJ
bankers/NNS
'/POS
acceptance/NN
rate/NN
until/IN
Dec./NNP
31/CD
,/,
1994/CD
./.
Thereafter/RB
,/,
the/DT
rate/NN
will/MD
be/VB
renegotiated/VBN
./.
Mr./NNP
Vaux/NNP
said/VBD
that/IN
if/IN
no/DT
agreement/NN
is/VBZ
reached/VBN
,/,
other/JJ
buyers/NNS
will/MD
be/VB
sought/VBN
by/IN
bid/NN
or/CC
auction/NN
./.
The/DT
shares/NNS
are/VBP
redeemable/JJ
after/IN
the/DT
end/NN
of/IN
1994/CD
./.
Mr./NNP
Vaux/NNP
said/VBD
the/DT
share/NN
issue/NN
is/VBZ
part/NN
of/IN
a/DT
strategy/NN
to/TO
strengthen/VB
Labatt/NNP
's/POS
balance/NN
sheet/NN
in/IN
anticipation/NN
of/IN
acquisitions/NNS
to/TO
be/VB
made/VBN
during/IN
the/DT
next/JJ
12/CD
to/TO
18/CD
months/NNS
./.
Labatt/NNP
's/POS
has/VBZ
no/DT
takeover/NN
bids/NNS
outstanding/JJ
currently/RB
,/,
he/PRP
said/VBD
./.
Lead/JJ
underwriter/NN
to/TO
the/DT
issue/NN
is/VBZ
Toronto/NNP
Dominion/NNP
Securities/NNPS
Inc/NNP
./.
Texas/NNP
Instruments/NNPS
Inc./NNP
,/,
once/RB
a/DT
pioneer/NN
in/IN
portable/JJ
computer/NN
technology/NN
,/,
today/NN
will/MD
make/VB
a/DT
bid/NN
to/TO
reassert/VB
itself/PRP
in/IN
that/DT
business/NN
by/IN
unveiling/VBG
three/CD
small/JJ
personal/JJ
computers/NNS
./.
The/DT
announcements/NNS
are/VBP
scheduled/VBN
to/TO
be/VB
made/VBN
in/IN
Temple/NNP
,/,
Texas/NNP
,/,
and/CC
include/VBP
a/DT
so-called/JJ
``/``
notebook/NN
''/''
PC/NN
that/WDT
weighs/VBZ
less/JJR
than/IN
seven/CD
pounds/NNS
,/,
has/VBZ
a/DT
built-in/JJ
hard/JJ
disk/NN
drive/NN
and/CC
is/VBZ
powered/VBN
by/IN
Intel/NNP
Corp./NNP
's/POS
286/CD
microprocessor/NN
./.
That/DT
introduction/NN
comes/VBZ
only/RB
two/CD
weeks/NNS
after/IN
Compaq/NNP
Computer/NNP
Corp./NNP
,/,
believing/VBG
it/PRP
had/VBD
a/DT
lead/NN
of/IN
three/CD
to/TO
six/CD
months/NNS
on/IN
competitors/NNS
,/,
introduced/VBD
the/DT
first/JJ
U.S./NNP
notebook/NN
computer/NN
with/IN
such/JJ
features/NNS
./.
Despite/IN
the/DT
inevitable/JJ
comparison/NN
with/IN
Compaq/NNP
,/,
however/RB
,/,
Texas/NNP
Instruments/NNP
'/POS
new/JJ
notebook/NN
wo/MD
n't/RB
be/VB
a/DT
direct/JJ
competitor/NN
./.
While/IN
Compaq/NNP
sells/VBZ
its/PRP$
machines/NNS
to/TO
businesses/NNS
through/IN
computer/NN
retailers/NNS
,/,
Texas/NNP
Instruments/NNP
will/MD
be/VB
selling/VBG
most/JJS
of/IN
its/PRP$
machines/NNS
to/TO
the/DT
industrial/JJ
market/NN
and/CC
to/TO
value-added/JJ
resellers/NNS
and/CC
original-equipment/JJ
manufacturers/NNS
./.
The/DT
introductions/NNS
also/RB
mark/VBP
Texas/NNP
Instruments/NNP
'/POS
plunge/NN
back/RB
into/IN
a/DT
technology/NN
it/PRP
has/VBZ
all/RB
but/RB
ignored/VBN
for/IN
the/DT
past/JJ
several/JJ
years/NNS
./.
Although/IN
the/DT
Dallas-based/JJ
computer/NN
giant/NN
introduced/VBD
the/DT
first/JJ
portable/JJ
data/NNS
terminal/NN
in/IN
1971/CD
--/:
a/DT
38-pound/JJ
monster/NN
--/:
and/CC
the/DT
world/NN
's/POS
first/JJ
microprocessor-based/JJ
portable/NN
in/IN
1976/CD
,/,
the/DT
only/JJ
portable/JJ
machines/NNS
it/PRP
has/VBZ
introduced/VBN
since/IN
the/DT
first/JJ
part/NN
of/IN
the/DT
decade/NN
have/VBP
been/VBN
``/``
dumb/JJ
''/''
terminals/NNS
with/IN
limited/JJ
on-board/JJ
processing/NN
ability/NN
./.
It/PRP
stopped/VBD
selling/VBG
a/DT
standard/JJ
personal/JJ
computer/NN
a/DT
while/NN
ago/RB
./.
Now/RB
that/DT
is/VBZ
about/RB
to/TO
change/VB
,/,
as/IN
Texas/NNP
Instruments/NNPS
begins/VBZ
marketing/VBG
two/CD
14-pound/JJ
laptop/JJ
PCs/NNS
with/IN
20/CD
megabyte/NN
and/CC
40/CD
megabyte/NN
hard/JJ
drives/NNS
./.
The/DT
laptops/NNS
are/VBP
not/RB
revolutionary/JJ
and/CC
,/,
indeed/RB
,/,
are/VBP
tardy/JJ
in/IN
a/DT
market/NN
first/RB
opened/VBN
by/IN
GRiD/NNP
Systems/NNPS
Corp./NNP
,/,
now/RB
a/DT
unit/NN
of/IN
Tandy/NNP
Corp./NNP
,/,
almost/RB
two/CD
years/NNS
ago/RB
./.
But/CC
the/DT
notebook/NN
,/,
with/IN
the/DT
more/RBR
advanced/JJ
microprocessor/NN
and/CC
hard/JJ
disk/NN
,/,
is/VBZ
more/RBR
innovative/JJ
./.
Weighing/VBG
6.7/CD
pounds/NNS
with/IN
battery/NN
,/,
the/DT
notebook/NN
measures/VBZ
8.2/CD
by/IN
11.7/CD
inches/NNS
,/,
has/VBZ
a/DT
20-megabyte/JJ
hard/JJ
disk/NN
drive/NN
and/CC
boasts/VBZ
a/DT
backlit/JJ
screen/NN
that/WDT
is/VBZ
22/CD
%/NN
larger/JJR
than/IN
Compaq/NNP
's/POS
./.
Its/PRP$
keyboard/NN
,/,
according/VBG
to/TO
industry/NN
consultants/NNS
,/,
is/VBZ
better/JJR
than/IN
Compaq/NNP
's/POS
,/,
but/CC
its/PRP$
battery/NN
life/NN
of/IN
two/CD
to/TO
three/CD
hours/NNS
is/VBZ
shorter/JJR
./.
It/PRP
does/VBZ
n't/RB
have/VB
an/DT
internal/JJ
floppy/JJ
disk/NN
drive/NN
,/,
although/IN
a/DT
snap-on/JJ
drive/NN
can/MD
be/VB
purchased/VBN
separately/RB
./.
Its/PRP$
greatest/JJS
drawback/NN
may/MD
be/VB
its/PRP$
3-inch/JJ
thickness/NN
,/,
big/JJ
enough/RB
for/IN
one/CD
consultant/NN
to/TO
describe/VB
it/PRP
as/IN
``/``
clunky/JJ
./.
''/''
List/NN
prices/NNS
on/IN
the/DT
heavier/JJR
Texas/NNP
Instrument/NNP
laptops/NNS
will/MD
be/VB
$/$
4,999/CD
for/IN
the/DT
TI/NNP
Model/NNP
25/CD
,/,
with/IN
a/DT
20/CD
megabyte/NN
disk/NN
drive/NN
,/,
and/CC
$/$
5,599/CD
for/IN
the/DT
40-megabyte/JJ
Model/NNP
45/CD
./.
The/DT
notebook/NN
,/,
the/DT
TI/NNP
Model/NNP
12/CD
,/,
will/MD
be/VB
priced/VBN
at/IN
$/$
4,199/CD
./.
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
said/VBD
it/PRP
applied/VBD
to/TO
Taiwanese/JJ
securities/NNS
officials/NNS
for/IN
permission/NN
to/TO
open/VB
brokerage/NN
offices/NNS
in/IN
Taipei/NNP
./.
Shearson/NNP
's/POS
application/NN
is/VBZ
the/DT
first/JJ
since/IN
the/DT
Taiwan/NNP
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
announced/VBD
June/NNP
21/CD
that/IN
it/PRP
would/MD
allow/VB
foreign/JJ
brokerage/NN
firms/NNS
to/TO
do/VB
business/NN
in/IN
that/DT
country/NN
./.
Taiwan/NNP
officials/NNS
are/VBP
expected/VBN
to/TO
review/VB
the/DT
Shearson/NNP
application/NN
later/RB
this/DT
year/NN
./.
Under/IN
current/JJ
rules/NNS
,/,
investors/NNS
in/IN
Taiwan/NNP
can/MD
buy/VB
overseas/JJ
stocks/NNS
only/RB
through/IN
the/DT
purchase/NN
of/IN
mutual/JJ
funds/NNS
issued/VBN
by/IN
local/JJ
and/CC
foreign/JJ
investment/NN
trusts/NNS
./.
The/DT
new/JJ
rules/NNS
will/MD
allow/VB
investors/NNS
to/TO
buy/VB
foreign/JJ
stocks/NNS
directly/RB
./.
A/DT
spokesman/NN
for/IN
Shearson/NNP
said/VBD
the/DT
brokerage/NN
service/NN
will/MD
be/VB
directed/VBN
at/IN
individual/JJ
investors/NNS
who/WP
want/VBP
to/TO
buy/VB
foreign/JJ
and/CC
domestic/JJ
stocks/NNS
./.
``/``
It/PRP
's/VBZ
an/DT
attractive/JJ
market/NN
with/IN
good/JJ
growth/NN
opportunities/NNS
,/,
''/''
he/PRP
added/VBD
./.
Retailers/NNS
in/IN
the/DT
West/NNP
and/CC
parts/NNS
of/IN
the/DT
South/NNP
are/VBP
entering/VBG
the/DT
critical/JJ
Christmas/NNP
shopping/NN
season/NN
with/IN
more/JJR
momentum/NN
than/IN
those/DT
in/IN
other/JJ
regions/NNS
./.
In/IN
a/DT
new/JJ
report/NN
,/,
the/DT
International/NNP
Council/NNP
of/IN
Shopping/NNP
Centers/NNPS
said/VBD
sales/NNS
of/IN
general/JJ
merchandise/NN
in/IN
the/DT
West/NNP
for/IN
the/DT
first/JJ
seven/CD
months/NNS
of/IN
1989/CD
rose/VBD
6.6/CD
%/NN
above/IN
year-earlier/JJ
levels/NNS
./.
Sales/NNS
increased/VBD
a/DT
more/RBR
modest/JJ
4.8/CD
%/NN
in/IN
the/DT
South/NNP
and/CC
4.4/CD
%/NN
in/IN
the/DT
Midwest/NNP
./.
But/CC
sales/NNS
in/IN
the/DT
oil-patch/NN
state/NN
of/IN
Texas/NNP
surged/VBD
12.9/CD
%/NN
and/CC
sales/NNS
in/IN
South/NNP
Carolina/NNP
jumped/VBD
10.6/CD
%/NN
in/IN
the/DT
period/NN
,/,
the/DT
New/NNP
York/NNP
trade/NN
group/NN
said/VBD
./.
In/IN
the/DT
Northeast/NNP
,/,
however/RB
,/,
sales/NNS
declined/VBD
0.4/CD
%/NN
in/IN
the/DT
period/NN
,/,
with/IN
sales/NNS
in/IN
New/NNP
England/NNP
falling/VBG
2.6/CD
%/NN
./.
The/DT
numbers/NNS
show/VBP
that/IN
``/``
we/PRP
do/VBP
n't/RB
have/VB
a/DT
monolithic/JJ
economy/NN
,/,
''/''
said/VBD
Isaac/NNP
Lagnado/NNP
,/,
council/NN
research/NN
director/NN
./.
``/``
There/EX
are/VBP
a/DT
lot/NN
of/IN
have/JJ
and/CC
have-not/JJ
markets/NNS
./.
''/''
Sales/NNS
nationally/RB
rose/VBD
3.9/CD
%/NN
through/IN
July/NNP
,/,
the/DT
latest/JJS
month/NN
for/IN
which/WDT
the/DT
figures/NNS
are/VBP
available/JJ
,/,
the/DT
council/NN
said/VBD
./.
The/DT
Northern/NNP
California/NNP
earthquake/NN
and/CC
Hurricane/NNP
Hugo/NNP
are/VBP
likely/JJ
to/TO
temporarily/RB
damp/VB
sales/JJ
growth/NN
in/IN
the/DT
West/NNP
and/CC
South/NNP
Carolina/NNP
./.
But/CC
Mr./NNP
Lagnado/NNP
predicted/VBD
the/DT
regional/JJ
trends/NNS
would/MD
continue/VB
through/IN
Christmas/NNP
./.
``/``
The/DT
big/JJ
mo/NN
is/VBZ
as/RB
much/JJ
of/IN
a/DT
factor/NN
in/IN
retailing/NN
as/IN
in/IN
politics/NN
,/,
''/''
he/PRP
said/VBD
./.
The/DT
Christmas/NNP
quarter/NN
is/VBZ
important/JJ
to/TO
retailers/NNS
because/IN
it/PRP
represents/VBZ
roughly/RB
a/DT
third/JJ
of/IN
their/PRP$
sales/NNS
and/CC
nearly/RB
half/NN
of/IN
their/PRP$
profits/NNS
./.
The/DT
council/NN
's/POS
report/NN
is/VBZ
based/VBN
on/IN
data/NNS
the/DT
trade/NN
group/NN
buys/VBZ
from/IN
the/DT
U.S./NNP
Census/NNP
Bureau/NNP
./.
The/DT
information/NN
on/IN
125/CD
metropolitan/JJ
markets/NNS
is/VBZ
supplied/VBN
by/IN
retailers/NNS
such/JJ
as/IN
Sears/NNP
,/,
Roebuck/NNP
&/CC
Co./NNP
and/CC
K/NNP
mart/NNP
Corp./NNP
as/RB
well/RB
as/IN
closely/RB
held/VBN
concerns/NNS
such/JJ
as/IN
R.H./NNP
Macy/NNP
&/CC
Co/NNP
./.
The/DT
council/NN
plans/VBZ
to/TO
release/VB
its/PRP$
regional/JJ
reports/NNS
monthly/RB
./.
Mr./NNP
Lagnado/NNP
said/VBD
strength/NN
in/IN
employment/NN
appears/VBZ
to/TO
have/VB
the/DT
biggest/JJS
impact/NN
on/IN
sales/NNS
growth/NN
./.
El/NNP
Paso/NNP
,/,
Austin/NNP
and/CC
Fort/NNP
Worth/NNP
,/,
the/DT
three/CD
strongest/JJS
retail/JJ
markets/NNS
in/IN
the/DT
nation/NN
,/,
are/VBP
all/DT
located/VBN
in/IN
Texas/NNP
,/,
where/WRB
employment/NN
grew/VBD
a/DT
relatively/RB
strong/JJ
2/CD
%/NN
./.
Massachusetts/NNP
,/,
which/WDT
has/VBZ
lost/VBN
jobs/NNS
in/IN
the/DT
computer/NN
and/CC
defense-related/JJ
industries/NNS
,/,
was/VBD
the/DT
weakest/JJS
link/NN
in/IN
bleak/JJ
New/NNP
England/NNP
./.
The/DT
results/NNS
reflect/VBP
a/DT
reversal/NN
in/IN
the/DT
fortunes/NNS
of/IN
the/DT
regions/NNS
during/IN
the/DT
past/JJ
two/CD
years/NNS
./.
In/IN
1987/CD
,/,
the/DT
West/NNP
had/VBD
the/DT
slowest/JJS
sales/NNS
growth/NN
,/,
and/CC
the/DT
South/NNP
and/CC
the/DT
Midwest/NNP
were/VBD
first/JJ
and/CC
second/JJ
respectively/RB
,/,
according/VBG
to/TO
the/DT
council/NN
./.
Mr./NNP
Lagnado/NNP
said/VBD
that/IN
although/IN
retailers/NNS
probably/RB
wo/MD
n't/RB
ever/RB
recover/VB
sales/NNS
lost/VBN
because/RB
of/IN
the/DT
California/NNP
quake/NN
and/CC
Hurricane/NNP
Hugo/NNP
,/,
they/PRP
could/MD
see/VB
some/DT
benefits/NNS
later/RB
on/RB
./.
Stores/NNS
such/JJ
as/IN
Sears/NNS
that/WDT
sell/VBP
big-ticket/JJ
durable/JJ
goods/NNS
might/MD
actually/RB
get/VB
a/DT
boost/NN
as/IN
consumers/NNS
rush/VBP
to/TO
replace/VB
items/NNS
lost/VBN
in/IN
the/DT
disasters/NNS
,/,
he/PRP
said/VBD
./.
Kerr-McGee/NNP
Corp./NNP
said/VBD
it/PRP
will/MD
spend/VB
$/$
42/CD
million/CD
to/TO
purchase/VB
land/NN
and/CC
relocate/VB
its/PRP$
ammonium/NN
perchlorate/NN
storage/NN
facility/NN
to/TO
Clark/NNP
County/NNP
,/,
Nev./NNP
,/,
from/IN
Henderson/NNP
,/,
Nev/NNP
./.
The/DT
company/NN
said/VBD
it/PRP
will/MD
move/VB
the/DT
storage/NN
and/CC
cross-blending/JJ
operations/NNS
to/TO
a/DT
site/NN
23/CD
miles/NNS
northeast/RB
of/IN
Las/NNP
Vegas/NNP
to/TO
distance/VB
the/DT
operations/NNS
from/IN
residential/JJ
areas/NNS
./.
Ammonium/NN
perchlorate/NN
is/VBZ
an/DT
oxidizer/NN
that/WDT
is/VBZ
mixed/VBN
with/IN
a/DT
propellant/NN
to/TO
make/VB
rocket/NN
fuel/NN
used/VBN
in/IN
the/DT
space/NN
shuttle/NN
and/CC
military/JJ
rockets/NNS
./.
In/IN
May/NNP
1988/CD
,/,
an/DT
ammonium/NN
perchlorate/NN
plant/NN
in/IN
Henderson/NNP
owned/VBN
by/IN
an/DT
American/NNP
Pacific/NNP
Corp./NNP
unit/NN
was/VBD
leveled/VBN
by/IN
a/DT
series/NN
of/IN
explosions/NNS
./.
After/IN
the/DT
explosion/NN
,/,
Kerr-McGee/NNP
temporarily/RB
shut/VBD
down/RP
its/PRP$
facility/NN
just/RB
south/RB
of/IN
Las/NNP
Vegas/NNP
for/IN
a/DT
safety/NN
inspection/NN
./.
American/NNP
Pacific/NNP
and/CC
Kerr-McGee/NNP
are/VBP
the/DT
only/JJ
two/CD
U.S./NNP
manufacturers/NNS
of/IN
ammonium/NN
perchlorate/NN
./.
When/WRB
the/DT
plant/NN
was/VBD
destroyed/VBN
,/,
``/``
I/PRP
think/VBP
everyone/NN
got/VBD
concerned/JJ
that/IN
the/DT
same/JJ
thing/NN
would/MD
happen/VB
at/IN
our/PRP$
plant/NN
,/,
''/''
a/DT
KerrMcGee/NNP
spokeswoman/NN
said/VBD
./.
That/DT
prompted/VBD
Kerr-McGee/NNP
to/TO
consider/VB
moving/VBG
the/DT
potentially/RB
volatile/JJ
storage/NN
facilities/NNS
and/CC
cross-blending/JJ
operations/NNS
away/RB
from/IN
town/NN
./.
Kerr-McGee/NNP
said/VBD
it/PRP
has/VBZ
purchased/VBN
3,350/CD
acres/NNS
from/IN
the/DT
federal/JJ
government/NN
in/IN
Clark/NNP
County/NNP
and/CC
plans/NNS
to/TO
begin/VB
construction/NN
early/RB
next/JJ
year/NN
./.
The/DT
new/JJ
facility/NN
is/VBZ
expected/VBN
to/TO
begin/VB
operations/NNS
in/IN
early/JJ
1991/CD
./.
The/DT
Henderson/NNP
plant/NN
will/MD
continue/VB
its/PRP$
other/JJ
chemical/JJ
operations/NNS
,/,
the/DT
company/NN
said/VBD
./.
This/DT
maker/NN
of/IN
electronic/JJ
devices/NNS
said/VBD
it/PRP
replaced/VBD
all/DT
five/CD
incumbent/JJ
directors/NNS
at/IN
a/DT
special/JJ
meeting/NN
called/VBN
by/IN
Milton/NNP
B./NNP
Hollander/NNP
,/,
whose/WP$
High/NNP
Technology/NNP
Holding/NNP
Co./NNP
of/IN
Stamford/NNP
,/,
Conn./NNP
acquired/VBD
most/JJS
of/IN
its/PRP$
49.4/CD
%/NN
stake/NN
in/IN
Newport/NNP
in/IN
August/NNP
./.
Elected/VBN
as/IN
directors/NNS
were/VBD
Mr./NNP
Hollander/NNP
,/,
Frederick/NNP
Ezekiel/NNP
,/,
Frederick/NNP
Ross/NNP
,/,
Arthur/NNP
B./NNP
Crozier/NNP
and/CC
Rose/NNP
Pothier/NNP
./.
Removed/VBN
from/IN
office/NN
were/VBD
George/NNP
Pratt/NNP
,/,
Robert/NNP
E./NNP
Davis/NNP
,/,
Norman/NNP
Gray/NNP
,/,
John/NNP
Virtue/NNP
,/,
corporate/JJ
secretary/NN
,/,
and/CC
Barrett/NNP
B./NNP
Weekes/NNP
,/,
chairman/NN
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
./.
Newport/NNP
officials/NNS
did/VBD
n't/RB
respond/VB
Friday/NNP
to/TO
requests/NNS
to/TO
discuss/VB
the/DT
changes/NNS
at/IN
the/DT
company/NN
but/CC
earlier/RB
,/,
Mr./NNP
Weekes/NNP
had/VBD
said/VBD
Mr./NNP
Hollander/NNP
wanted/VBD
to/TO
have/VB
his/PRP$
own/JJ
team/NN
on/IN
the/DT
board/NN
./.
Shiseido/NNP
Co./NNP
,/,
Japan/NNP
's/POS
leading/JJ
cosmetics/NNS
producer/NN
,/,
said/VBD
it/PRP
had/VBD
net/JJ
income/NN
of/IN
5.64/CD
billion/CD
yen/NNS
$/$
39.7/CD
million/CD
its/PRP$
first/JJ
half/NN
,/,
which/WDT
ended/VBD
Sept./NNP
30/CD
./.
Exact/JJ
comparisons/NNS
with/IN
the/DT
previous/JJ
year/NN
were/VBD
unavailable/JJ
because/IN
of/IN
a/DT
change/NN
in/IN
the/DT
company/NN
's/POS
fiscal/IN
calendar/NN
./.
The/DT
Tokyo-based/JJ
company/NN
had/VBD
net/NN
of/IN
3.73/CD
billion/CD
yen/NNS
in/IN
the/DT
previous/JJ
reporting/NN
period/NN
,/,
which/WDT
was/VBD
the/DT
four/CD
months/NNS
ended/VBN
March/NNP
31/CD
./.
Sales/NNS
in/IN
the/DT
first/JJ
half/NN
came/VBD
to/TO
159.92/CD
billion/CD
yen/NNS
,/,
compared/VBN
with/IN
104.79/CD
billion/CD
yen/NNS
in/IN
the/DT
four-month/JJ
period/NN
./.
Shiseido/NN
predicted/VBD
that/IN
sales/NNS
for/IN
the/DT
year/NN
ending/VBG
next/JJ
March/NNP
31/CD
will/MD
be/VB
318/CD
billion/CD
yen/NNS
,/,
compared/VBN
with/IN
340.83/CD
billion/CD
yen/NNS
in/IN
the/DT
year/NN
ended/VBD
Nov./NNP
30/CD
,/,
1988/CD
./.
It/PRP
said/VBD
it/PRP
expects/VBZ
net/NN
to/TO
rise/VB
to/TO
11/CD
billion/CD
yen/NNS
from/IN
8.22/CD
billion/CD
yen/NNS
./.
Bruce/NNP
W./NNP
Wilkinson/NNP
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
was/VBD
named/VBN
to/TO
the/DT
additional/JJ
post/NN
of/IN
chairman/NN
of/IN
this/DT
architectural/JJ
and/CC
design/NN
services/NNS
concern/NN
./.
Mr./NNP
Wilkinson/NNP
,/,
45/CD
years/NNS
old/JJ
,/,
succeeds/VBZ
Thomas/NNP
A./NN
Bullock/NNP
,/,
66/CD
,/,
who/WP
is/VBZ
retiring/VBG
as/IN
chairman/NN
but/CC
will/MD
continue/VB
as/IN
a/DT
director/NN
and/CC
chairman/NN
of/IN
the/DT
executive/JJ
committee/NN
./.
Merger/NN
and/CC
acquisition/NN
activity/NN
in/IN
the/DT
third/JJ
quarter/NN
exceeded/VBD
the/DT
year-earlier/JJ
pace/NN
,/,
said/VBD
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
's/POS
W.T./NNP
Grimm/NNP
&/CC
Co./NNP
unit/NN
in/IN
Schaumburg/NNP
,/,
Ill/NNP
./.
A/DT
total/NN
of/IN
672/CD
transactions/NNS
were/VBD
announced/VBN
during/IN
the/DT
latest/JJS
quarter/NN
,/,
up/RB
13/CD
%/NN
from/IN
the/DT
year-earlier/JJ
period/NN
's/POS
597/CD
,/,
Grimm/NNP
said/VBD
./.
Transactions/NNS
in/IN
which/WDT
prices/NNS
were/VBD
disclosed/VBN
totaled/VBD
$/$
71.9/CD
billion/CD
,/,
up/RB
36/CD
%/NN
from/IN
$/$
52.9/CD
billion/CD
a/DT
year/NN
earlier/RBR
,/,
the/DT
company/NN
added/VBD
./.
Grimm/NN
counted/VBD
16/CD
transactions/NNS
valued/VBN
at/IN
$/$
1/CD
billion/CD
or/CC
more/JJR
in/IN
the/DT
latest/JJS
period/NN
,/,
twice/RB
as/RB
many/JJ
as/IN
a/DT
year/NN
earlier/RBR
./.
The/DT
largest/JJS
was/VBD
the/DT
$/$
12/CD
billion/CD
merger/NN
creating/VBG
Bristol-Myers/NNP
Squibb/NNP
Co/NNP
./.
In/IN
the/DT
first/JJ
nine/CD
months/NNS
,/,
1,977/CD
transactions/NNS
were/VBD
announced/VBN
,/,
up/RB
15/CD
%/NN
from/IN
1,716/CD
in/IN
the/DT
year-earlier/JJ
period/NN
./.
Transactions/NNS
in/IN
which/WDT
prices/NNS
were/VBD
disclosed/VBN
totaled/VBD
$/$
188.1/CD
billion/CD
,/,
up/RB
15/CD
%/NN
from/IN
$/$
163.2/CD
billion/CD
a/DT
year/NN
earlier/RBR
./.
Citing/VBG
current/JJ
stock/NN
market/NN
conditions/NNS
and/CC
the/DT
trend/NN
away/RB
from/IN
highly/RB
leveraged/JJ
transactions/NNS
,/,
Grimm/NNP
said/VBD
it/PRP
was/VBD
n't/RB
certain/JJ
that/IN
the/DT
total/JJ
value/NN
of/IN
transactions/NNS
for/IN
the/DT
year/NN
will/MD
exceed/VB
the/DT
record/JJ
$/$
247/CD
billion/CD
in/IN
1988/CD
./.
MEDICINE/NNP
SHOPPE/NNP
INTERNATIONAL/NNP
Inc./NNP
declared/VBD
a/DT
3-for-2/JJ
stock/NN
split/NN
,/,
and/CC
substantially/RB
boosted/VBD
the/DT
dividend/NN
payout/NN
./.
The/DT
franchiser/NN
of/IN
pharmacies/NNS
said/VBD
the/DT
added/JJ
shares/NNS
will/MD
be/VB
distributed/VBN
Dec./NNP
4/CD
to/TO
stock/NN
of/IN
record/NN
Nov./NNP
13/CD
./.
The/DT
company/NN
also/RB
changed/VBD
its/PRP$
dividend/NN
policy/NN
,/,
under/IN
which/WDT
holders/NNS
had/VBD
received/VBN
an/DT
annual/JJ
10/CD
cents-a-share/JJ
payment/NN
,/,
by/IN
declaring/VBG
a/DT
four-cents-a-share/JJ
dividend/NN
,/,
to/TO
be/VB
paid/VBN
quarterly/RB
on/IN
post-split/JJ
shares/NNS
./.
NBI/NNP
Inc./NNP
said/VBD
that/IN
it/PRP
can/MD
not/RB
pay/VB
the/DT
Oct./NNP
31/CD
dividend/NN
on/IN
its/PRP$
Series/NNP
A/NNP
convertible/JJ
preferred/JJ
stock/NN
,/,
allowing/VBG
the/DT
stock/NN
's/POS
holder/NN
to/TO
convert/VB
the/DT
shares/NNS
into/IN
as/RB
much/JJ
as/IN
27.7/CD
%/NN
of/IN
NBI/NNP
's/POS
shares/NNS
outstanding/JJ
./.
NBI/NNP
said/VBD
that/IN
it/PRP
has/VBZ
the/DT
funds/NNS
to/TO
pay/VB
the/DT
dividend/NN
,/,
but/CC
that/IN
it/PRP
does/VBZ
n't/RB
have/VB
the/DT
surplus/NN
or/CC
profit/NN
required/VBN
under/IN
Delaware/NNP
law/NN
for/IN
payment/NN
of/IN
the/DT
dividend/NN
./.
All/PDT
the/DT
preferred/JJ
stock/NN
is/VBZ
held/VBN
by/IN
the/DT
Yukon/NNP
Office/NNP
Supply/NNP
Stock/NNP
Ownership/NNP
Plan/NNP
./.
Under/IN
terms/NNS
of/IN
the/DT
stock/NN
,/,
the/DT
Yukon/NNP
ESOP/NNP
can/MD
demand/VB
that/IN
the/DT
stock/NN
be/VB
redeemed/VBN
for/IN
$/$
4,090,000/CD
on/IN
Nov./NNP
30/CD
,/,
but/CC
NBI/NNP
said/VBD
it/PRP
is/VBZ
legally/RB
prohibited/VBN
from/IN
making/VBG
the/DT
redemption/NN
./.
Failure/NN
to/TO
pay/VB
the/DT
dividend/NN
allows/VBZ
Yukon/NNP
to/TO
convert/VB
all/DT
or/CC
some/DT
of/IN
its/PRP$
shares/NNS
into/IN
NBI/NNP
common/JJ
after/IN
Nov./NNP
30/CD
,/,
at/IN
a/DT
conversion/NN
price/NN
based/VBN
on/IN
NBI/NNP
's/POS
closing/NN
stock/NN
price/NN
./.
NBI/NNP
,/,
a/DT
maker/NN
of/IN
word-processing/NN
systems/NNS
,/,
said/VBD
it/PRP
ca/MD
n't/RB
predict/VB
if/IN
any/DT
of/IN
the/DT
preferred/JJ
stock/NN
will/MD
be/VB
converted/VBN
./.
NBI/NNP
also/RB
said/VBD
it/PRP
has/VBZ
hired/VBN
Prudential-Bache/NNP
Securities/NNPS
Inc./NNP
as/IN
its/PRP$
financial/JJ
adviser/NN
and/CC
investment/NN
banker/NN
to/TO
help/VB
it/PRP
restructure/VB
financially/RB
and/CC
improve/VB
its/PRP$
balance/NN
sheet/NN
./.
Insurers/NNS
may/MD
see/VB
claims/NNS
resulting/VBG
from/IN
the/DT
San/NNP
Francisco/NNP
earthquake/NN
totaling/VBG
nearly/RB
$/$
1/CD
billion/CD
--/:
far/RB
less/JJR
than/IN
the/DT
claims/NNS
they/PRP
face/VBP
from/IN
Hurricane/NNP
Hugo/NNP
--/:
but/CC
the/DT
recent/JJ
spate/NN
of/IN
catastrophes/NNS
should/MD
jolt/VB
property/NN
insurance/NN
rates/NNS
in/IN
coming/JJ
months/NNS
./.
The/DT
property/NN
claims/NNS
service/NN
division/NN
of/IN
the/DT
American/NNP
Insurance/NNP
Services/NNPS
Group/NNP
estimated/VBD
insured/JJ
losses/NNS
from/IN
the/DT
earthquake/NN
at/IN
$/$
960/CD
million/CD
./.
This/DT
estimate/NN
does/VBZ
n't/RB
include/VB
claims/NNS
under/IN
workers/NNS
'/POS
compensation/NN
,/,
life/NN
,/,
health/NN
disability/NN
and/CC
liability/NN
insurance/NN
and/CC
damage/NN
to/TO
infrastructure/NN
such/JJ
as/IN
bridges/NNS
,/,
highways/NNS
and/CC
public/JJ
buildings/NNS
./.
The/DT
estimated/JJ
earthquake/NN
losses/NNS
are/VBP
low/JJ
compared/VBN
with/IN
the/DT
$/$
4/CD
billion/CD
in/IN
claims/NNS
that/IN
insurers/NNS
face/VBP
from/IN
Hurricane/NNP
Hugo/NNP
,/,
which/WDT
ripped/VBD
through/IN
the/DT
Caribbean/NNP
and/CC
the/DT
Carolinas/NNPS
last/JJ
month/NN
./.
That/DT
's/VBZ
because/IN
only/RB
about/RB
30/CD
%/NN
of/IN
California/NNP
homes/NNS
and/CC
businesses/NNS
had/VBD
earthquake/NN
insurance/NN
to/TO
cover/VB
the/DT
losses/NNS
./.
However/RB
,/,
insurance/NN
brokers/NNS
and/CC
executives/NNS
say/VBP
that/IN
the/DT
combination/NN
of/IN
the/DT
Bay/NNP
area/NN
earthquake/NN
,/,
Hugo/NNP
and/CC
last/JJ
week/NN
's/POS
explosion/NN
at/IN
the/DT
Phillips/NNP
Petroleum/NNP
Co./NNP
's/POS
refinery/NN
in/IN
Pasadena/NNP
,/,
Texas/NNP
,/,
will/MD
cause/VB
property/NN
insurance/NN
and/CC
reinsurance/NN
rates/NNS
to/TO
jump/VB
./.
Other/JJ
insurance/NN
rates/NNS
such/JJ
as/IN
casualty/NN
insurance/NN
,/,
which/WDT
would/MD
cover/VB
liability/NN
claims/NNS
,/,
are/VBP
n't/RB
likely/JJ
to/TO
firm/VB
right/RB
away/RB
,/,
says/VBZ
Alice/NNP
Cornish/NNP
,/,
an/DT
industry/NN
analyst/NN
with/IN
Northington/NNP
Research/NNP
in/IN
Avon/NNP
,/,
Conn/NNP
./.
She/PRP
believes/VBZ
the/DT
impact/NN
of/IN
losses/NNS
from/IN
these/DT
catastrophes/NNS
is/VBZ
n't/RB
likely/JJ
to/TO
halt/VB
the/DT
growth/NN
of/IN
the/DT
industry/NN
's/POS
surplus/JJ
capital/NN
next/JJ
year/NN
./.
Property/NN
reinsurance/NN
rates/NNS
are/VBP
likely/JJ
to/TO
climb/VB
first/RB
,/,
analysts/NNS
and/CC
brokers/NNS
believe/VBP
./.
``/``
The/DT
reinsurance/NN
market/NN
has/VBZ
been/VBN
bloodied/VBN
by/IN
disasters/NNS
''/''
in/IN
the/DT
U.S./NNP
as/RB
well/RB
as/IN
in/IN
Great/NNP
Britain/NNP
and/CC
Europe/NNP
,/,
says/VBZ
Thomas/NNP
Rosencrants/NNP
,/,
director/NN
of/IN
research/NN
at/IN
Interstate\/Johnson/NNP
Lane/NNP
Inc./NNP
in/IN
Atlanta/NNP
./.
Insurers/NNP
typically/RB
retain/VBP
a/DT
small/JJ
percentage/NN
of/IN
the/DT
risks/NNS
they/PRP
underwrite/VBP
and/CC
pass/VBP
on/RP
the/DT
rest/NN
of/IN
the/DT
losses/NNS
./.
Insurers/NNP
buy/VBP
this/DT
insurance/NN
protection/NN
for/IN
themselves/PRP
by/IN
giving/VBG
up/RP
a/DT
portion/NN
of/IN
the/DT
premiums/NNS
they/PRP
collect/VBP
on/IN
a/DT
policy/NN
to/TO
another/DT
firm/NN
--/:
a/DT
reinsurance/NN
company/NN
,/,
which/WDT
,/,
in/IN
turn/NN
,/,
accepts/VBZ
a/DT
portion/NN
of/IN
any/DT
losses/NNS
resulting/VBG
from/IN
this/DT
policy/NN
./.
Insurers/NNP
,/,
such/JJ
as/IN
Cigna/NNP
Corp./NNP
,/,
Transamerica/NNP
Corp/NNP
,/,
and/CC
Aetna/NNP
Life/NNP
&/CC
Casualty/NNP
Co./NNP
,/,
buy/VBP
reinsurance/NN
from/IN
other/JJ
U.S.-based/JJ
companies/NNS
and/CC
Lloyd/NNP
's/VBZ
of/IN
London/NNP
for/IN
one/CD
catastrophe/NN
at/IN
a/DT
time/NN
./.
After/IN
Hugo/NNP
hit/VBD
,/,
many/JJ
insurers/NNS
exhausted/VBD
their/PRP$
reinsurance/NN
coverage/NN
and/CC
had/VBD
to/TO
tap/VB
reinsurers/NNS
to/TO
replace/VB
that/DT
coverage/NN
in/IN
case/NN
there/EX
were/VBD
any/DT
other/JJ
major/JJ
disasters/NNS
before/IN
the/DT
end/NN
of/IN
the/DT
year/NN
./.
After/IN
the/DT
earthquake/NN
two/CD
weeks/NNS
ago/RB
,/,
brokers/NNS
say/VBP
companies/NNS
scrambled/VBD
to/TO
replace/VB
reinsurance/NN
coverages/NNS
again/RB
and/CC
Lloyd/NNP
's/POS
syndicates/NNS
turned/VBD
to/TO
the/DT
London/NNP
market/NN
excess/NN
lines/NNS
for/IN
protection/NN
of/IN
their/PRP$
own/JJ
./.
James/NNP
Snedeker/NNP
,/,
senior/JJ
vice/NN
president/NN
of/IN
Gill/NNP
&/CC
Roeser/NNP
Inc./NNP
,/,
a/DT
New/NNP
York-based/JJ
reinsurance/NN
broker/NN
,/,
says/VBZ
insurers/NNS
who/WP
took/VBD
big/JJ
losses/NNS
this/DT
fall/NN
and/CC
had/VBD
purchased/VBN
little/JJ
reinsurance/NN
in/IN
recent/JJ
years/NNS
will/MD
be/VB
asked/VBN
to/TO
pay/VB
some/DT
pretty/JJ
hefty/JJ
rates/NNS
if/IN
they/PRP
want/VBP
to/TO
buy/VB
reinsurance/NN
for/IN
1990/CD
./.
However/RB
,/,
companies/NNS
with/IN
few/JJ
catastrophe/NN
losses/NNS
this/DT
year/NN
and/CC
already/RB
big/JJ
buyers/NNS
of/IN
reinsurance/NN
are/VBP
likely/JJ
to/TO
see/VB
their/PRP$
rates/NNS
remain/VBP
flat/JJ
,/,
or/CC
perhaps/RB
even/RB
decline/VBP
slightly/RB
./.
Many/JJ
companies/NNS
will/MD
be/VB
negotiating/VBG
their/PRP$
1990/CD
reinsurance/NN
contracts/NNS
in/IN
the/DT
next/JJ
few/JJ
weeks/NNS
./.
``/``
It/PRP
's/VBZ
a/DT
seller/NN
's/POS
market/NN
,/,
''/''
said/VBD
Mr./NNP
Snedeker/NNP
of/IN
the/DT
reinsurance/NN
market/NN
right/RB
now/RB
./.
But/CC
some/DT
large/JJ
insurers/NNS
,/,
such/JJ
as/IN
State/NNP
Farm/NNP
Mutual/NNP
Automobile/NNP
Insurance/NNP
Co./NNP
,/,
do/VBP
n't/RB
purchase/VB
reinsurance/NN
,/,
but/CC
fund/VBP
their/PRP$
own/JJ
program/NN
./.
A/DT
few/JJ
years/NNS
ago/RB
,/,
State/NNP
Farm/NNP
,/,
the/DT
nation/NN
's/POS
largest/JJS
home/NN
insurer/NN
,/,
stopped/VBD
buying/VBG
reinsurance/NN
because/IN
no/DT
one/CD
carrier/NN
could/MD
provide/VB
all/PDT
the/DT
coverage/NN
that/IN
it/PRP
needed/VBD
and/CC
the/DT
company/NN
found/VBD
it/PRP
cheaper/JJR
to/TO
self-reinsure/VB
./.
The/DT
$/$
472/CD
million/CD
of/IN
losses/NNS
State/NNP
Farm/NNP
expects/VBZ
from/IN
Hugo/NNP
and/CC
an/DT
additional/JJ
$/$
300/CD
million/CD
from/IN
the/DT
earthquake/NN
are/VBP
less/JJR
than/IN
5/CD
%/NN
of/IN
State/NNP
Farm/NNP
's/POS
$/$
16.7/CD
billion/CD
total/JJ
net/JJ
worth/NN
./.
Since/IN
few/JJ
insurers/NNS
have/VBP
announced/VBN
what/WDT
amount/NN
of/IN
losses/NNS
they/PRP
expect/VBP
to/TO
see/VB
from/IN
the/DT
earthquake/NN
,/,
it/PRP
's/VBZ
impossible/JJ
to/TO
get/VB
a/DT
clear/JJ
picture/NN
of/IN
the/DT
quake/NN
's/POS
impact/NN
on/IN
fourth-quarter/JJ
earnings/NNS
,/,
said/VBD
Herbert/NNP
Goodfriend/NNP
at/IN
Prudential-Bache/NNP
Securities/NNPS
Corp/NNP
./.
Transamerica/NNP
expects/VBZ
an/DT
after-tax/JJ
charge/NN
of/IN
less/JJR
than/IN
$/$
3/CD
million/CD
against/IN
fourth-quarter/JJ
net/NN
;/:
Hartford/NNP
Insurance/NNP
Group/NNP
,/,
a/DT
unit/NN
of/IN
ITT/NNP
Corp./NNP
,/,
expects/VBZ
a/DT
$/$
15/CD
million/CD
or/CC
10/CD
cents/NNS
after-tax/JJ
charge/NN
;/:
and/CC
Fireman/NNP
's/POS
Fund/NNP
Corp./NNP
expects/VBZ
a/DT
charge/NN
of/IN
no/DT
more/JJR
than/IN
$/$
50/CD
million/CD
before/IN
taxes/NNS
and/CC
after/IN
using/VBG
its/PRP$
reinsurance/NN
./.
Sharp/NNP
Corp./NNP
,/,
Tokyo/NNP
,/,
said/VBD
net/JJ
income/NN
in/IN
its/PRP$
first/JJ
half/NN
rose/VBD
59/CD
%/NN
to/TO
18.32/CD
billion/CD
yen/NNS
$/$
128.9/CD
million/CD
11.53/CD
billion/CD
yen/NNS
a/DT
year/NN
earlier/RBR
./.
The/DT
consumer/NN
electronics/NNS
,/,
home/NN
appliances/NNS
and/CC
information-processing/NN
concern/NN
said/VBD
revenue/NN
in/IN
the/DT
six/CD
months/NNS
ended/VBN
Sept./NNP
30/CD
rose/VBD
8.9/CD
%/NN
to/TO
517.85/CD
billion/CD
yen/NNS
from/IN
475.6/CD
billion/CD
yen/NNS
./.
Sales/NNS
of/IN
information-processing/NN
products/NNS
and/CC
electric/JJ
parts/NNS
increased/VBD
a/DT
strong/JJ
22/CD
%/NN
to/TO
236.23/CD
billion/CD
yen/NNS
from/IN
194.24/CD
billion/CD
yen/NNS
and/CC
accounted/VBD
for/IN
46/CD
%/NN
of/IN
total/JJ
sales/NNS
./.
In/IN
audio/JJ
equipment/NN
,/,
sales/NNS
rose/VBD
13/CD
%/NN
to/TO
44.3/CD
billion/CD
yen/NNS
from/IN
39.19/CD
billion/CD
yen/NNS
./.
Sales/NNS
of/IN
electric/JJ
appliances/NNS
were/VBD
flat/JJ
,/,
and/CC
sales/NNS
of/IN
electronic/JJ
equipment/NN
declined/VBD
slightly/RB
./.
Sharp/JJ
projected/JJ
sales/NNS
for/IN
the/DT
current/JJ
year/NN
ending/VBG
March/NNP
31/CD
at/IN
1.6/CD
trillion/CD
yen/NNS
,/,
a/DT
7/CD
%/NN
increase/NN
the/DT
previous/JJ
fiscal/JJ
year/NN
./.
It/PRP
said/VBD
it/PRP
expects/VBZ
net/NN
to/TO
rise/VB
45/CD
%/NN
to/TO
380/CD
billion/CD
yen/NNS
./.
Sun/NNP
Microsystems/NNPS
Inc./NNP
,/,
a/DT
computer/NN
maker/NN
,/,
announced/VBD
the/DT
effectiveness/NN
of/IN
its/PRP$
registration/NN
statement/NN
for/IN
$/$
125/CD
million/CD
of/IN
6/CD
3\/8/CD
%/NN
convertible/JJ
subordinated/JJ
debentures/NNS
due/JJ
Oct./NNP
15/CD
,/,
1999/CD
./.
The/DT
company/NN
said/VBD
the/DT
debentures/NNS
are/VBP
being/VBG
issued/VBN
at/IN
an/DT
issue/NN
price/NN
of/IN
$/$
849/CD
for/IN
each/DT
$/$
1,000/CD
principal/JJ
amount/NN
and/CC
are/VBP
convertible/JJ
at/IN
any/DT
time/NN
prior/RB
to/TO
maturity/NN
at/IN
a/DT
conversion/NN
price/NN
of/IN
$/$
25/CD
a/DT
share/NN
./.
The/DT
debentures/NNS
are/VBP
available/JJ
through/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
./.
Nelson/NNP
Holdings/NNPS
International/NNP
Ltd./NNP
shareholders/NNS
approved/VBD
a/DT
1-for-10/JJ
consolidation/NN
of/IN
the/DT
company/NN
's/POS
common/JJ
stock/NN
at/IN
a/DT
special/JJ
meeting/NN
./.
At/IN
the/DT
same/JJ
time/NN
,/,
shareholders/NNS
approved/VBD
the/DT
adoption/NN
of/IN
a/DT
rights/NNS
plan/NN
and/CC
a/DT
super-majority/JJ
voting/NN
approval/NN
requirement/NN
./.
They/PRP
also/RB
approved/VBD
the/DT
relocation/NN
of/IN
the/DT
company/NN
's/POS
registered/JJ
office/NN
to/TO
Toronto/NNP
from/IN
Vancouver/NNP
and/CC
a/DT
name/NN
change/NN
to/TO
NHI/NNP
Nelson/NNP
Holdings/NNPS
International/NNP
Ltd/NNP
./.
Following/VBG
the/DT
consolidation/NN
,/,
the/DT
entertainment/NN
company/NN
,/,
which/WDT
has/VBZ
film/NN
and/CC
television/NN
operations/NNS
in/IN
Beverly/NNP
Hills/NNP
,/,
Calif./NNP
,/,
will/MD
have/VB
about/RB
4.1/CD
million/CD
shares/NNS
outstanding/JJ
./.
The/DT
number/NN
of/IN
authorized/JJ
common/JJ
shares/NNS
will/MD
remain/VB
at/IN
100/CD
million/CD
./.
Under/IN
the/DT
rights/NNS
plan/NN
,/,
holders/NNS
will/MD
have/VB
one/CD
right/NN
for/IN
each/DT
common/JJ
share/NN
held/VBN
,/,
with/IN
each/DT
right/NN
entitling/VBG
the/DT
purchase/NN
of/IN
one/CD
common/JJ
share/NN
for/IN
100/CD
Canadian/JJ
dollars/NNS
./.
The/DT
rights/NNS
plan/NN
would/MD
be/VB
triggered/VBN
if/IN
a/DT
person/NN
or/CC
group/NN
acquires/VBZ
20/CD
%/NN
or/CC
more/JJR
of/IN
the/DT
common/JJ
shares/NNS
outstanding/JJ
without/IN
making/VBG
an/DT
offer/NN
to/TO
all/DT
shareholders/NNS
./.
Under/IN
the/DT
super-majority/JJ
amendment/NN
,/,
certain/JJ
mergers/NNS
and/CC
other/JJ
transactions/NNS
would/MD
require/VB
approval/NN
of/IN
holders/NNS
of/IN
80/CD
%/NN
of/IN
the/DT
company/NN
's/POS
common/JJ
shares/NNS
outstanding/JJ
./.
Wilfred/NNP
American/NNP
Educational/NNP
Corp./NNP
said/VBD
a/DT
federal/JJ
grand/JJ
jury/NN
in/IN
Boston/NNP
indicted/VBD
the/DT
operator/NN
of/IN
cosmetology/NN
and/CC
business/NN
schools/NNS
for/IN
mail/NN
fraud/NN
./.
The/DT
charges/NNS
in/IN
the/DT
12-count/JJ
indictment/NN
,/,
which/WDT
stem/VBP
from/IN
events/NNS
that/WDT
allegedly/RB
occurred/VBD
in/IN
late/JJ
1984/CD
and/CC
early/JJ
1985/CD
,/,
involve/VBP
enrollment/NN
procedures/NNS
of/IN
six/CD
students/NNS
and/CC
the/DT
preparation/NN
of/IN
certain/JJ
reports/NNS
,/,
Wilfred/VBD
said/VBD
./.
No/DT
individuals/NNS
were/VBD
charged/VBN
in/IN
the/DT
indictment/NN
./.
Wilfred/NNP
American/NNP
said/VBD
it/PRP
will/MD
``/``
vigorously/RB
defend/VB
''/''
itself/PRP
against/IN
the/DT
charges/NNS
and/CC
added/VBD
that/IN
the/DT
charges/NNS
relate/VBP
to/TO
procedures/NNS
that/WDT
it/PRP
has/VBZ
since/RB
changed/VBN
./.
Eight/CD
admissions/NNS
representatives/NNS
at/IN
two/CD
of/IN
Wilfred/NNP
's/POS
former/JJ
Massachusetts/NNP
schools/NNS
previously/RB
pleaded/VBD
guilty/JJ
to/TO
charges/NNS
of/IN
aiding/VBG
,/,
abetting/VBG
and/CC
counseling/VBG
students/NNS
to/TO
submit/VB
false/JJ
financial-aid/NN
applications/NNS
./.
Wilfred/NNP
closed/VBD
its/PRP$
Massachusetts/NNP
schools/NNS
earlier/RBR
this/DT
year/NN
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
Friday/NNP
,/,
Wilfred/NNP
fell/VBD
6.25/CD
cents/NNS
to/TO
93.75/CD
cents/NNS
a/DT
share/NN
./.
Rally/NNP
's/POS
Inc./NNP
said/VBD
it/PRP
filed/VBD
suit/NN
in/IN
U.S./NNP
District/NNP
Court/NNP
in/IN
Delaware/NNP
against/IN
a/DT
group/NN
led/VBN
by/IN
Burt/NNP
Sugarman/NNP
,/,
seeking/VBG
to/TO
block/VB
the/DT
investors/NNS
from/IN
buying/VBG
more/JJR
shares/NNS
./.
Rally/NNP
's/POS
,/,
a/DT
Louisville/NNP
,/,
Ky./NNP
,/,
fast-food/NN
chain/NN
,/,
alleges/VBZ
that/IN
the/DT
three/CD
investors/NNS
,/,
who/WP
are/VBP
directors/NNS
of/IN
the/DT
company/NN
,/,
broke/VBD
securities/NNS
laws/NNS
because/IN
they/PRP
did/VBD
n't/RB
disclose/VB
their/PRP$
intentions/NNS
to/TO
acquire/VB
a/DT
big/JJ
Rally/NNP
's/POS
stake/NN
./.
The/DT
group/NN
,/,
led/VBN
by/IN
Giant/NNP
Group/NNP
Ltd./NNP
and/CC
its/PRP$
chairman/NN
,/,
Mr./NNP
Sugarman/NNP
,/,
owns/VBZ
about/RB
45.2/CD
%/NN
of/IN
Rally/NNP
's/POS
./.
In/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
filings/NNS
,/,
the/DT
group/NN
has/VBZ
said/VBN
it/PRP
may/MD
seek/VB
control/NN
of/IN
Rally/NNP
's/POS
./.
Mr./NNP
Sugarman/NNP
called/VBD
the/DT
lawsuit/NN
``/``
not/RB
nice/JJ
''/''
and/CC
said/VBD
his/PRP$
group/NN
will/MD
continue/VB
to/TO
push/VB
for/IN
control/NN
of/IN
the/DT
company/NN
and/CC
the/DT
removal/NN
of/IN
certain/JJ
directors/NNS
./.
He/PRP
asserts/VBZ
that/IN
some/DT
directors/NNS
,/,
who/WP
have/VBP
joined/VBN
forces/NNS
with/IN
company/NN
founder/NN
James/NNP
Patterson/NNP
,/,
have/VB
ties/NNS
to/TO
Wendy/NNP
's/VBZ
,/,
a/DT
competing/JJ
hamburger/NN
chain/NN
./.
The/DT
Patterson/NNP
group/NN
,/,
which/WDT
controls/VBZ
about/RB
42/CD
%/NN
of/IN
Rally/NN
's/POS
shares/NNS
,/,
also/RB
may/MD
seek/VB
control/NN
./.
Rally/NNP
's/POS
also/RB
said/VBD
it/PRP
formed/VBD
a/DT
committee/NN
of/IN
three/CD
directors/NNS
,/,
who/WP
are/VBP
n't/RB
associated/VBN
with/IN
either/CC
the/DT
Patterson/NNP
or/CC
Sugarman/NNP
groups/NNS
,/,
to/TO
analyze/VB
the/DT
situation/NN
./.
Leaseway/NNP
Transportation/NNP
Corp./NNP
said/VBD
it/PRP
will/MD
restructure/VB
$/$
192.5/CD
million/CD
of/IN
certain/JJ
subordinated/JJ
debentures/NNS
to/TO
reduce/VB
its/PRP$
debt/NN
obligations/NNS
and/CC
interest/NN
expense/NN
./.
The/DT
13.25/CD
%/NN
subordinated/JJ
debentures/NNS
due/JJ
2002/CD
were/VBD
issued/VBN
in/IN
August/NNP
1987/CD
as/IN
part/NN
of/IN
the/DT
$/$
690/CD
million/CD
financing/NN
for/IN
a/DT
leveraged/JJ
buy-out/NN
of/IN
the/DT
company/NN
./.
Leaseway/NNP
provides/VBZ
transportation/NN
services/NNS
for/IN
manufacturers/NNS
,/,
distributors/NNS
and/CC
retailers/NNS
./.
Leaseway/NNP
said/VBD
it/PRP
has/VBZ
begun/VBN
discussions/NNS
with/IN
certain/JJ
institutional/JJ
debt/NN
holders/NNS
to/TO
review/VB
the/DT
proposed/JJ
private/JJ
placement/NN
transaction/NN
,/,
which/WDT
would/MD
exchange/VB
the/DT
debt/NN
for/IN
new/JJ
subordinated/JJ
debt/NN
instruments/NNS
and/CC
equity/NN
securities/NNS
./.
Specific/JJ
terms/NNS
are/VBP
subject/JJ
to/TO
review/VB
and/CC
a/DT
final/JJ
agreement/NN
with/IN
debt/NN
holders/NNS
,/,
the/DT
company/NN
said/VBD
./.
But/CC
the/DT
proposed/JJ
transaction/NN
calls/VBZ
for/IN
an/DT
exchange/NN
of/IN
the/DT
debt/NN
for/IN
new/JJ
debentures/NNS
of/IN
lower/JJR
face/NN
value/NN
and/CC
reduced/JJ
cash/NN
interest/NN
./.
Also/RB
,/,
debt/NN
holders/NNS
would/MD
be/VB
offered/VBN
an/DT
equity/NN
position/NN
in/IN
Leaseway/NNP
,/,
which/WDT
in/IN
total/NN
would/MD
represent/VB
a/DT
controlling/VBG
interest/NN
in/IN
the/DT
company/NN
./.
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
is/VBZ
the/DT
adviser/NN
on/IN
the/DT
transaction/NN
./.
Company/NN
officials/NNS
said/VBD
Leaseway/NNP
fulfilled/VBD
payment/NN
requirements/NNS
of/IN
its/PRP$
debt/NN
obligations/NNS
since/IN
the/DT
leveraged/JJ
buy-out/NN
,/,
but/CC
``/``
our/PRP$
performance/NN
since/IN
the/DT
buy-out/NN
it/PRP
imperative/JJ
to/TO
implement/VB
actions/NNS
that/WDT
will/MD
further/RB
improve/VB
our/PRP$
cash/NN
flow/NN
./.
''/''
Nicaraguan/JJ
President/NNP
Daniel/NNP
Ortega/NNP
may/MD
have/VB
accomplished/VBN
over/IN
the/DT
weekend/NN
what/WP
his/PRP$
U.S./NNP
antagonists/NNS
have/VBP
failed/VBN
to/TO
do/VB
:/:
revive/VB
a/DT
constituency/NN
for/IN
the/DT
Contra/NNP
rebels/NNS
./.
Lawmakers/NNS
have/VBP
n't/RB
publicly/RB
raised/VBN
the/DT
possibility/NN
of/IN
renewing/VBG
military/JJ
aid/NN
to/TO
the/DT
Contras/NNPS
,/,
and/CC
President/NNP
Bush/NNP
parried/VBD
the/DT
question/NN
at/IN
a/DT
news/NN
conference/NN
here/RB
Saturday/NNP
,/,
saying/VBG
only/RB
that/IN
``/``
if/IN
there/EX
's/VBZ
an/DT
all-out/JJ
military/JJ
offensive/NN
,/,
that/WDT
's/VBZ
going/VBG
to/TO
change/VB
the/DT
equation/NN
180/CD
degrees/NNS
./.
''/''
But/CC
Mr./NNP
Ortega/NNP
's/POS
threat/NN
over/IN
the/DT
weekend/NN
to/TO
end/VB
a/DT
19-month/JJ
cease-fire/NN
with/IN
the/DT
rebels/NNS
seeking/VBG
to/TO
topple/VB
him/PRP
,/,
effectively/RB
elevated/VBD
the/DT
Contras/NNPS
as/IN
a/DT
policy/NN
priority/NN
just/RB
as/IN
they/PRP
were/VBD
slipping/VBG
from/IN
the/DT
agendas/NNS
of/IN
their/PRP$
most/JJS
ardent/JJ
supporters/NNS
./.
Senate/NNP
Majority/NNP
Leader/NNP
George/NNP
Mitchell/NNP
D./NNP
,/,
Maine/NNP
NBC-TV/NNP
's/POS
``/``
Meet/NNP
the/NNP
Press/NNP
''/''
that/IN
Mr./NNP
Ortega/NNP
's/POS
threat/NN
was/VBD
``/``
a/DT
very/RB
unwise/JJ
move/NN
,/,
particularly/RB
the/DT
timing/NN
of/IN
it/PRP
./.
''/''
The/DT
threat/NN
came/VBD
during/IN
a/DT
two-day/JJ
celebration/NN
in/IN
Costa/NNP
Rica/NNP
to/TO
highlight/VB
Central/NNP
America/NNP
's/POS
progress/NN
toward/IN
democracy/NN
in/IN
the/DT
region/NN
,/,
attended/VBN
by/IN
President/NNP
Bush/NNP
,/,
Canadian/JJ
Prime/NNP
Minister/NNP
Brian/NNP
Mulroney/NNP
and/CC
14/CD
other/JJ
Western/NNP
Hemisphere/NNP
leaders/NNS
./.
Mr./NNP
Bush/NNP
returned/VBD
to/TO
Washington/NNP
Saturday/NNP
night/NN
./.
Mr./NNP
Ortega/NNP
announced/VBD
on/IN
Friday/NNP
that/IN
he/PRP
would/MD
end/VB
the/DT
cease-fire/NN
this/DT
week/NN
in/IN
response/NN
to/TO
the/DT
periodic/JJ
Contra/NNP
assaults/NNS
against/IN
his/PRP$
army/NN
./.
Saturday/NNP
,/,
he/PRP
amended/VBD
his/PRP$
remarks/NNS
to/TO
say/VB
that/IN
he/PRP
would/MD
continue/VB
to/TO
abide/VB
by/IN
the/DT
cease-fire/NN
if/IN
the/DT
U.S./NNP
ends/VBZ
its/PRP$
financial/JJ
support/NN
for/IN
the/DT
Contras/NNPS
./.
He/PRP
asked/VBD
that/IN
the/DT
remaining/VBG
U.S./NNP
humanitarian/JJ
aid/NN
be/VB
diverted/VBN
to/TO
disarming/VBG
and/CC
demobilizing/VBG
the/DT
rebels/NNS
./.
Not/RB
only/RB
did/VBD
Mr./NNP
Ortega/NNP
's/POS
comments/NNS
come/VB
in/IN
the/DT
midst/NN
of/IN
what/WP
was/VBD
intended/VBN
as/IN
a/DT
showcase/NN
for/IN
the/DT
region/NN
,/,
it/PRP
came/VBD
as/IN
Nicaragua/NNP
is/VBZ
under/IN
special/JJ
international/JJ
scrutiny/NN
in/IN
anticipation/NN
of/IN
its/PRP$
planned/JJ
February/NNP
elections/NNS
./.
Outside/JJ
observers/NNS
are/VBP
gathering/VBG
in/IN
Nicaragua/NNP
to/TO
monitor/VB
the/DT
registration/NN
and/CC
treatment/NN
of/IN
opposition/NN
candidates/NNS
./.
And/CC
important/JJ
U.S./NNP
lawmakers/NNS
must/MD
decide/VB
at/IN
the/DT
end/NN
of/IN
November/NNP
if/IN
the/DT
Contras/NNPS
are/VBP
to/TO
receive/VB
the/DT
rest/NN
of/IN
the/DT
$/$
49/CD
million/CD
in/IN
so-called/JJ
humanitarian/JJ
assistance/NN
under/IN
a/DT
bipartisan/JJ
agreement/NN
reached/VBN
with/IN
the/DT
Bush/NNP
administration/NN
in/IN
March/NNP
./.
The/DT
humanitarian/JJ
assistance/NN
,/,
which/WDT
pays/VBZ
for/IN
supplies/NNS
such/JJ
as/IN
food/NN
and/CC
clothing/NN
for/IN
the/DT
rebels/NNS
amassed/VBN
along/IN
the/DT
Nicaraguan/JJ
border/NN
with/IN
Honduras/NNS
,/,
replaced/VBD
the/DT
military/JJ
aid/NN
cut/VBN
off/RP
by/IN
Congress/NNP
in/IN
February/NNP
1988/CD
./.
While/IN
few/JJ
lawmakers/NNS
anticipated/VBD
that/IN
the/DT
humanitarian/JJ
aid/NN
would/MD
be/VB
cut/VBN
off/RP
next/JJ
month/NN
,/,
Mr./NNP
Ortega/NNP
's/POS
threat/NN
practically/RB
guarantees/VBZ
that/IN
the/DT
humanitarian/JJ
aid/NN
will/MD
be/VB
continued/VBN
./.
Senate/NNP
Minority/NNP
Leader/NNP
Robert/NNP
Dole/NNP
R./NNP
,/,
Kan/NNP
./.
the/NNP
Press/NNP
''/''
:/:
``/``
I/PRP
would/MD
hope/VB
after/IN
his/PRP$
Mr./NNP
Ortega/NNP
's/POS
the/DT
day/NN
before/IN
,/,
we/PRP
'd/MD
have/VB
unanimous/JJ
support/NN
for/IN
quick/JJ
action/NN
on/IN
remaining/VBG
humanitarian/JJ
aid/NN
./.
''/''
Sen./NNP
Dole/NNP
also/RB
said/VBD
he/PRP
hoped/VBD
for/IN
unanimous/JJ
support/NN
for/IN
a/DT
resolution/NN
he/PRP
plans/VBZ
to/TO
offer/VB
tomorrow/NN
denouncing/VBG
the/DT
Nicaraguan/JJ
leader/NN
./.
While/IN
renewing/VBG
military/JJ
aid/NN
had/VBD
been/VBN
considered/VBN
out/IN
of/IN
the/DT
question/NN
,/,
rejected/VBN
by/IN
Congress/NNP
and/CC
de-emphasized/VBN
by/IN
the/DT
Bush/NNP
administration/NN
,/,
Mr./NNP
Ortega/NNP
's/POS
statement/NN
provides/VBZ
Contra/NNP
supporters/NNS
with/IN
the/DT
opportunity/NN
to/TO
press/VB
the/DT
administration/NN
on/IN
the/DT
issue/NN
./.
``/``
The/DT
administration/NN
should/MD
now/RB
state/VB
that/IN
if/IN
the/DT
February/NNP
election/NN
is/VBZ
voided/VBN
by/IN
the/DT
Sandinistas/NNS
.../:
they/PRP
should/MD
call/VB
for/IN
military/JJ
aid/NN
,/,
''/''
said/VBD
former/JJ
Assistant/NNP
Secretary/NNP
of/IN
State/NNP
Elliott/NNP
Abrams/NNP
./.
``/``
In/IN
these/DT
circumstances/NNS
,/,
I/PRP
think/VBP
they/PRP
'd/MD
win/VB
./.
''/''
Sen./NNP
Mitchell/NNP
said/VBD
that/IN
congressional/JJ
Democrats/NNPS
intend/VBP
to/TO
honor/VB
the/DT
March/NNP
agreement/NN
to/TO
give/VB
non-lethal/JJ
support/NN
to/TO
the/DT
Contras/NNPS
through/IN
the/DT
February/NNP
elections/NNS
,/,
although/IN
he/PRP
added/VBD
that/IN
the/DT
agreement/NN
requires/VBZ
that/IN
the/DT
Contras/NNPS
not/RB
initiate/VB
any/DT
military/JJ
action/NN
./.
Mr./NNP
Ortega/NNP
's/POS
threat/NN
to/TO
breach/VB
the/DT
cease-fire/NN
comes/VBZ
as/IN
U.S./NNP
officials/NNS
were/VBD
acknowledging/VBG
that/IN
the/DT
Contras/NNPS
have/VBP
at/IN
times/NNS
violated/VBN
it/PRP
themselves/PRP
./.
Secretary/NNP
of/IN
State/NNP
James/NNP
Baker/NNP
,/,
who/WP
accompanied/VBD
President/NNP
Bush/NNP
to/TO
Costa/NNP
Rica/NNP
,/,
told/VBD
reporters/NNS
Friday/NNP
:/:
``/``
I/PRP
have/VBP
no/DT
reason/NN
to/TO
deny/VB
reports/NNS
that/IN
some/DT
Contras/NNP
ambushed/VBD
some/DT
Sandinista/NNP
soldiers/NNS
./.
''/''
Mr./NNP
Baker/NNP
's/POS
assistant/NN
for/IN
inter-American/JJ
affairs/NNS
,/,
Bernard/NNP
Aronson/NNP
,/,
while/IN
maintaining/VBG
that/IN
the/DT
Sandinistas/NNPS
had/VBD
also/RB
broken/VBN
the/DT
cease-fire/NN
,/,
acknowledged/VBD
:/:
``/``
It/PRP
's/VBZ
never/RB
very/RB
clear/JJ
who/WP
starts/VBZ
what/WP
./.
''/''
He/PRP
added/VBD
that/IN
the/DT
U.S./NNP
has/VBZ
cut/VBN
off/RP
aid/NN
to/TO
some/DT
rebel/JJ
units/NNS
when/WRB
it/PRP
was/VBD
determined/VBN
that/IN
those/DT
units/NNS
broke/VBD
the/DT
cease-fire/NN
./.
In/IN
addition/NN
to/TO
undermining/VBG
arguments/NNS
in/IN
favor/NN
of/IN
ending/VBG
Contra/NNP
aid/NN
,/,
Mr./NNP
Ortega/NNP
's/POS
remarks/NNS
also/RB
played/VBD
to/TO
the/DT
suspicions/NNS
of/IN
some/DT
U.S./NNP
officials/NNS
and/CC
conservatives/NNS
outside/IN
the/DT
government/NN
that/IN
he/PRP
is/VBZ
searching/VBG
for/IN
ways/NNS
to/TO
manipulate/VB
or/CC
void/VB
the/DT
February/NNP
elections/NNS
./.
Administration/NN
officials/NNS
traveling/VBG
with/IN
President/NNP
Bush/NNP
in/IN
Costa/NNP
Rica/NNP
interpreted/VBD
Mr./NNP
Ortega/NNP
's/VBZ
wavering/NN
as/IN
a/DT
sign/NN
that/IN
he/PRP
is/VBZ
n't/RB
responding/VBG
to/TO
the/DT
military/JJ
attacks/NNS
so/RB
much/RB
as/IN
he/PRP
is/VBZ
searching/VBG
for/IN
ways/NNS
to/TO
strengthen/VB
his/PRP$
hand/NN
prior/RB
to/TO
the/DT
elections/NNS
./.
Mr./NNP
Abrams/NNP
said/VBD
that/IN
Mr./NNP
Ortega/NNP
is/VBZ
seeking/VBG
to/TO
demobilize/VB
the/DT
Contras/NNPS
prior/RB
to/TO
the/DT
elections/NNS
to/TO
remove/VB
any/DT
pressure/NN
to/TO
hold/VB
fair/JJ
elections/NNS
./.
``/``
My/PRP$
sense/NN
is/VBZ
what/WP
they/PRP
have/VBP
in/IN
mind/NN
is/VBZ
an/DT
excuse/NN
for/IN
clamping/VBG
down/RP
on/IN
campaigning/NN
''/''
by/IN
creating/VBG
an/DT
atmosphere/NN
of/IN
a/DT
military/JJ
emergency/NN
,/,
he/PRP
said/VBD
./.
Milton/NNP
Petrie/NNP
,/,
chairman/NN
of/IN
Petrie/NNP
Stores/NNPS
Corp./NNP
,/,
said/VBD
he/PRP
has/VBZ
agreed/VBN
to/TO
sell/VB
his/PRP$
15.2/CD
%/NN
stake/NN
in/IN
Deb/NNP
Shops/NNPS
Corp./NNP
to/TO
Petrie/NNP
Stores/NNP
./.
In/IN
a/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
filing/VBG
,/,
Mr./NNP
Petrie/NNP
said/VBD
that/IN
on/IN
Oct./NNP
26/CD
Petrie/NNP
Stores/NNPS
agreed/VBD
to/TO
purchase/VB
Mr./NNP
Petrie/NNP
's/POS
2,331,100/CD
Deb/NNP
Shops/NNPS
shares/NNS
./.
The/DT
transaction/NN
will/MD
take/VB
place/NN
tomorrow/NN
./.
The/DT
filing/NN
said/VBD
Petrie/NNP
Stores/NNPS
of/IN
Secaucus/NNP
,/,
N.J./NNP
,/,
is/VBZ
purchasing/VBG
Mr./NNP
Petrie/NNP
's/POS
Deb/NNP
Shops/NNPS
stake/NN
as/IN
an/DT
investment/NN
./.
Although/IN
Petrie/NNP
Stores/NNPS
has/VBZ
considered/VBN
seeking/VBG
to/TO
acquire/VB
the/DT
remaining/VBG
equity/NN
of/IN
Deb/NNP
Stores/NNPS
,/,
it/PRP
has/VBZ
no/DT
current/JJ
intention/NN
to/TO
pursue/VB
such/PDT
a/DT
possibility/NN
,/,
the/DT
filing/NN
said/VBD
./.
Philadelphia-based/JJ
Deb/NNP
Shops/NNPS
said/VBD
it/PRP
saw/VBD
little/JJ
significance/NN
in/IN
Mr./NNP
Petrie/NNP
selling/VBG
his/PRP$
stock/NN
to/TO
Petrie/NNP
Stores/NNPS
./.
``/``
We/PRP
did/VBD
n't/RB
look/NN
at/IN
it/PRP
and/CC
say/VB
,/,
`/``
Oh/UH
my/PRP$
God/NNP
,/,
something/NN
is/VBZ
going/VBG
to/TO
happen/VB
,/,
'/''
''/''
said/VBD
Stanley/NNP
Uhr/NNP
,/,
vice/NN
president/NN
and/CC
corporate/JJ
counsel/NN
./.
Mr./NNP
Uhr/NNP
said/VBD
that/IN
Mr./NNP
Petrie/NNP
or/CC
his/PRP$
company/NN
have/VBP
been/VBN
accumulating/VBG
Deb/NNP
Shops/NNPS
stock/NN
for/IN
several/JJ
years/NNS
,/,
each/DT
time/NN
issuing/VBG
a/DT
similar/JJ
regulatory/JJ
statement/NN
./.
He/PRP
said/VBD
no/DT
discussions/NNS
currently/RB
are/VBP
taking/VBG
place/NN
between/IN
the/DT
two/CD
companies/NNS
./.
Nikon/NNP
Corp./NNP
said/VBD
unconsolidated/JJ
pretax/JJ
profit/NN
increased/VBD
70/CD
%/NN
to/TO
12.12/CD
billion/CD
yen/NNS
$/$
85.3/CD
million/CD
the/DT
first/JJ
half/NN
ended/VBN
Sept./NNP
30/CD
,/,
from/IN
7.12/CD
billion/CD
yen/NNS
a/DT
year/NN
ago/RB
./.
The/DT
Tokyo/NNP
camera/NN
maker/NN
said/VBD
net/JJ
income/NN
more/RBR
than/IN
doubled/VBD
to/TO
5.85/CD
billion/CD
yen/NNS
,/,
or/CC
16.08/CD
a/DT
share/NN
,/,
from/IN
2.63/CD
billion/CD
yen/NNS
,/,
or/CC
7.24/CD
yen/NNS
a/DT
share/NN
./.
Nikon/NNP
said/VBD
sales/NNS
rose/VBD
despite/IN
the/DT
adverse/JJ
effect/NN
of/IN
Japan/NNP
's/POS
unpopular/JJ
consumption/NN
tax/NN
,/,
introduced/VBN
in/IN
April/NNP
./.
Increasing/VBG
personal/JJ
spending/NN
and/CC
capital/NN
investment/NN
are/VBP
fueling/VBG
growth/NN
,/,
the/DT
company/NN
said/VBD
./.
Rising/VBG
export/NN
sales/NNS
also/RB
contributed/VBD
to/TO
strong/JJ
growth/NN
,/,
Nikon/NNP
added/VBD
./.
Total/JJ
sales/NNS
gained/VBD
20/CD
%/NN
to/TO
122.36/CD
billion/CD
yen/NNS
from/IN
102.01/CD
billion/CD
yen/NNS
./.
Exports/NNS
made/VBD
up/RP
46.2/CD
%/NN
of/IN
the/DT
latest/JJS
year/NN
's/POS
total/NN
,/,
up/RB
from/IN
39.8/CD
%/NN
a/DT
year/NN
ago/RB
./.
Camera/NN
sales/NNS
showed/VBD
the/DT
strongest/JJS
gains/NNS
,/,
rising/VBG
37/CD
%/NN
to/TO
50.59/CD
billion/CD
yen/NNS
./.
Nikon/NNP
forecast/NN
sales/NNS
for/IN
the/DT
year/NN
ending/VBG
March/NNP
31/CD
will/MD
rise/VB
9.6/CD
%/NN
to/TO
240/CD
billion/CD
yen/NNS
./.
Pretax/JJ
profit/NN
is/VBZ
expected/VBN
to/TO
increase/VB
18/CD
%/NN
to/TO
22/CD
billion/CD
yen/NNS
and/CC
net/JJ
income/NN
is/VBZ
expected/VBN
to/TO
rise/VB
53/CD
%/NN
to/TO
10.5/CD
billion/CD
yen/NNS
./.
Presidio/NNP
Oil/NNP
Co./NNP
said/VBD
it/PRP
signed/VBD
a/DT
definitive/JJ
agreement/NN
to/TO
acquire/VB
Gulf/NNP
Canada/NNP
Resources/NNPS
Ltd./NNP
's/POS
U.S./NNP
unit/NN
for/IN
$/$
163/CD
million/CD
./.
Presidio/NNP
,/,
a/DT
Denver/NNP
oil/NN
and/CC
gas/NN
concern/NN
,/,
said/VBD
it/PRP
will/MD
acquire/VB
the/DT
properties/NNS
and/CC
operations/NNS
of/IN
Home/NNP
Petroleum/NNP
Corp./NNP
,/,
which/WDT
includes/VBZ
two/CD
regional/JJ
gas-gathering/JJ
systems/NNS
and/CC
proved/JJ
reserves/NNS
of/IN
about/RB
nine/CD
million/CD
barrels/NNS
of/IN
oil/NN
and/CC
72/CD
billion/CD
cubic/JJ
feet/NNS
of/IN
natural/JJ
gas/NN
./.
Presidio/NN
said/VBD
the/DT
properties/NNS
are/VBP
generally/RB
situated/VBN
in/IN
Wyoming/NNP
,/,
North/NNP
Dakota/NNP
,/,
Texas/NNP
,/,
Oklahoma/NNP
and/CC
Louisiana/NNP
./.
Gulf/NNP
Canada/NNP
,/,
Calgary/NNP
,/,
said/VBD
the/DT
transaction/NN
is/VBZ
part/NN
of/IN
its/PRP$
plan/NN
to/TO
sell/VB
non-strategic/JJ
assets/NNS
and/CC
focus/VB
operations/NNS
on/IN
Canada/NNP
,/,
Indonesia/NNP
and/CC
other/JJ
international/JJ
areas/NNS
./.
A/DT
spokesman/NN
for/IN
Gulf/NNP
Canada/NNP
,/,
which/WDT
is/VBZ
controlled/VBN
by/IN
Toronto/NNP
's/POS
Reichmann/NNP
family/NN
,/,
said/VBD
the/DT
properties/NNS
account/VBP
for/IN
about/RB
6/CD
%/NN
of/IN
the/DT
company/NN
's/POS
assets/NNS
and/CC
produce/VBP
about/RB
5,000/CD
barrels/NNS
of/IN
oil/NN
and/CC
35/CD
million/CD
cubic/JJ
feet/NNS
of/IN
gas/NN
a/DT
day/NN
./.
He/PRP
said/VBD
Gulf/NNP
Canada/NNP
will/MD
likely/RB
report/VB
an/DT
extraordinary/JJ
gain/NN
from/IN
the/DT
sale/NN
in/IN
the/DT
fourth/JJ
quarter/NN
,/,
but/CC
he/PRP
would/MD
n't/RB
offer/VB
a/DT
specific/JJ
estimate/NN
./.
The/DT
transaction/NN
is/VBZ
expected/VBN
to/TO
close/VB
by/IN
Nov./NNP
30/CD
./.
NEC/NNP
Corp./NNP
,/,
a/DT
Tokyo-based/JJ
computer/NN
and/CC
electronics/NN
concern/NN
,/,
said/VBD
net/JJ
income/NN
rose/VBD
18/CD
%/NN
to/TO
29.66/CD
billion/CD
yen/NNS
$/$
208.7/CD
million/CD
the/DT
fiscal/JJ
first/JJ
half/NN
,/,
ended/VBN
Sept./NNP
30/CD
,/,
from/IN
25.12/CD
billion/CD
yen/NNS
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
rose/VBD
7.4/CD
%/NN
to/TO
1.255/CD
trillion/CD
yen/NNS
from/IN
1.168/CD
trillion/CD
yen/NNS
./.
NEC/NNP
said/VBD
first-half/JJ
computer/NN
sales/NNS
totaled/VBD
555.5/CD
billion/CD
yen/NNS
,/,
up/RB
11/CD
%/NN
from/IN
500.26/CD
billion/CD
yen/NNS
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
of/IN
electrical/JJ
devices/NNS
rose/VBD
13/CD
%/NN
to/TO
283.8/CD
billion/CD
yen/NNS
from/IN
251.8/CD
billion/CD
yen/NNS
./.
It/PRP
said/VBD
sales/NNS
of/IN
home/NN
electronic/JJ
products/NNS
advanced/VBD
3.7/CD
%/NN
to/TO
44.92/CD
billion/CD
yen/NNS
from/IN
43.34/CD
billion/CD
yen/NNS
./.
In/IN
the/DT
period/NN
just/RB
ended/VBN
,/,
computers/NNS
accounted/VBD
for/IN
44/CD
%/NN
of/IN
total/JJ
sales/NNS
,/,
NEC/NNP
said/VBD
,/,
and/CC
electrical/JJ
devices/NNS
made/VBD
up/RP
23/CD
%/NN
./.
NEC/NNP
forecast/VBD
sales/NNS
for/IN
the/DT
year/NN
ending/VBG
next/JJ
March/NNP
31/CD
of/IN
2.74/CD
trillion/CD
yen/NNS
,/,
an/DT
increase/NN
of/IN
27/CD
%/NN
from/IN
the/DT
previous/JJ
fiscal/JJ
year/NN
./.
It/PRP
said/VBD
net/JJ
income/NN
will/MD
rise/VB
25/CD
%/NN
to/TO
69/CD
billion/CD
yen/NNS
./.
Montedison/NNP
S.p.A./NNP
definitively/RB
agreed/VBD
to/TO
buy/VB
all/DT
of/IN
the/DT
publicly/RB
held/VBN
shares/NNS
of/IN
Erbamont/NNP
N.V./NNP
for/IN
$/$
37/CD
each/DT
./.
Montedison/NNP
now/RB
owns/VBZ
about/RB
72/CD
%/NN
of/IN
Erbamont/NNP
's/POS
shares/NNS
outstanding/JJ
./.
The/DT
companies/NNS
said/VBD
the/DT
accord/NN
was/VBD
unanimously/RB
approved/VBN
by/IN
a/DT
special/JJ
committee/NN
of/IN
Erbamont/NNP
directors/NNS
unaffiliated/JJ
with/IN
Montedison/NNP
./.
Under/IN
the/DT
pact/NN
,/,
Montedision/NN
will/MD
make/VB
a/DT
$/$
37-a-share/JJ
tender/NN
offer/NN
for/IN
Erbamont/NNP
stock/NN
outstanding/JJ
./.
The/DT
tender/NN
offer/NN
will/MD
be/VB
followed/VBN
by/IN
the/DT
sale/NN
of/IN
all/DT
of/IN
Erbamont/NNP
's/POS
assets/NNS
,/,
subject/JJ
to/TO
all/DT
of/IN
its/PRP$
liabilities/NNS
,/,
to/TO
Montedison/NNP
./.
Erbamont/NNP
will/MD
then/RB
be/VB
liquidated/VBN
,/,
with/IN
any/DT
remaining/VBG
Erbamont/NNP
holders/NNS
receiving/VBG
a/DT
distribution/NN
of/IN
$/$
37/CD
a/DT
share/NN
./.
The/DT
companies/NNS
said/VBD
the/DT
transaction/NN
is/VBZ
being/VBG
structured/VBN
this/DT
way/NN
because/IN
the/DT
laws/NNS
of/IN
the/DT
Netherlands/NNPS
Antilles/NNPS
,/,
under/IN
which/WDT
Erbamont/NNP
is/VBZ
organized/VBN
,/,
do/VBP
n't/RB
provide/VB
for/IN
merger/NN
transactions/NNS
./.
A/DT
unit/NN
of/IN
DPC/NNP
Acquisition/NNP
Partners/NNPS
launched/VBD
a/DT
$/$
10-a-share/JJ
tender/NN
offer/NN
for/IN
the/DT
shares/NNS
outstanding/JJ
of/IN
Dataproducts/NNPS
Corp./NNP
,/,
and/CC
said/VBD
it/PRP
would/MD
seek/VB
to/TO
liquidate/VB
the/DT
computer-printer/NN
maker/NN
``/``
as/RB
soon/RB
as/IN
possible/JJ
,/,
''/''
even/RB
if/IN
a/DT
merger/NN
is/VBZ
n't/RB
consummated/VBN
./.
DPC/NNP
Acquisition/NNP
is/VBZ
controlled/VBN
by/IN
Crescott/NNP
Investment/NNP
Associates/NNPS
,/,
Wilson/NNP
Investment/NNP
Group/NNP
,/,
Kernel/NNP
Corp./NNP
and/CC
Catalyst/NNP
Partners/NNPS
./.
The/DT
investor/NN
group/NN
owns/VBZ
1,534,600/CD
Dataproducts/NNPS
common/JJ
shares/NNS
,/,
or/CC
a/DT
7.6/CD
%/NN
stake/NN
./.
The/DT
offer/NN
is/VBZ
based/VBN
on/IN
several/JJ
conditions/NNS
,/,
including/VBG
obtaining/VBG
financing/NN
./.
DPC/NNP
Acquisition/NNP
said/VBD
it/PRP
had/VBD
received/VBN
the/DT
reasonable/JJ
assurance/NN
of/IN
Chase/NNP
Manhattan/NNP
Bank/NNP
N.A./NNP
that/IN
the/DT
financing/NN
can/MD
be/VB
obtained/VBN
./.
In/IN
a/DT
filing/NN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
,/,
DPC/NNP
Acquisition/NNP
said/VBD
it/PRP
expects/VBZ
it/PRP
will/MD
need/VB
about/RB
$/$
215/CD
million/CD
to/TO
buy/VB
the/DT
shares/NNS
and/CC
pay/VB
related/VBN
fees/NNS
and/CC
expenses/NNS
./.
DPC/NNP
Acquisition/NNP
added/VBD
that/IN
it/PRP
has/VBZ
not/RB
begun/VBN
discussions/NNS
with/IN
financing/NN
sources/NNS
,/,
and/CC
said/VBD
it/PRP
expected/VBD
to/TO
repay/VB
the/DT
amounts/NNS
borrowed/VBN
through/IN
proceeds/NNS
of/IN
the/DT
liquidation/NN
./.
Dataproducts/NNPS
officials/NNS
declined/VBD
to/TO
comment/VB
,/,
and/CC
said/VBD
they/PRP
had/VBD
not/RB
yet/RB
seen/VBN
a/DT
suit/NN
filed/VBN
in/IN
federal/JJ
court/NN
by/IN
DPC/NNP
Acquisition/NNP
that/WDT
seeks/VBZ
to/TO
nullify/VB
a/DT
standstill/JJ
agreement/NN
between/IN
DPC/NNP
Acquisition/NNP
and/CC
Dataproducts/NNPS
./.
Earlier/RBR
this/DT
year/NN
,/,
DPC/NNP
Acquisition/NNP
made/VBD
a/DT
$/$
15-a-share/JJ
offer/NN
for/IN
Dataproducts/NNPS
,/,
which/WDT
the/DT
Dataproducts/NNPS
board/NN
said/VBD
it/PRP
rejected/VBD
because/IN
the/DT
$/$
283.7/CD
million/CD
offer/NN
was/VBD
not/RB
fully/RB
financed/VBN
./.
Dataproducts/NNP
has/VBZ
since/IN
started/VBN
a/DT
restructuring/NN
,/,
and/CC
has/VBZ
said/VBN
it/PRP
is/VBZ
not/RB
for/IN
sale/NN
./.
Jayark/NNP
Corp./NNP
agreed/VBD
to/TO
pay/VB
$/$
4/CD
million/CD
in/IN
cash/NN
,/,
$/$
2/CD
million/CD
of/IN
12/CD
%/NN
convertible/JJ
debentures/NNS
,/,
and/CC
1.6/CD
million/CD
common/JJ
shares/NNS
to/TO
acquire/VB
closely/RB
held/VBN
Kofcoh/NNP
Imports/NNP
Inc/NNP
./.
In/IN
over-the-counter/JJ
trading/NN
Friday/NNP
,/,
Jayark/NNP
was/VBD
quoted/VBN
at/IN
87.5/CD
cents/NNS
bid/NN
,/,
down/RB
15.625/CD
cents/NNS
./.
At/IN
the/DT
market/NN
price/NN
,/,
the/DT
transaction/NN
has/VBZ
a/DT
total/JJ
indicated/JJ
value/NN
of/IN
$/$
7.4/CD
million/CD
./.
Kofcoh/NNP
is/VBZ
a/DT
New/NNP
York/NNP
holding/VBG
company/NN
for/IN
Rosalco/NNP
Inc./NNP
,/,
which/WDT
imports/VBZ
furniture/NN
and/CC
other/JJ
items/NNS
./.
David/NNP
L./NNP
Koffman/NNP
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
Jayark/NNP
,/,
holds/VBZ
about/RB
40/CD
%/NN
of/IN
Kofcoh/NNP
,/,
Jayark/NNP
said/VBD
./.
Jayark/NNP
,/,
New/NNP
York/NNP
,/,
distributes/VBZ
and/CC
rents/VBZ
audio-visual/JJ
equipment/NN
and/CC
prints/VBZ
promotional/JJ
ads/NNS
for/IN
retailers/NNS
./.
In/IN
the/DT
quarter/NN
ended/VBN
July/NNP
31/CD
,/,
Jayark/NNP
had/VBD
an/DT
average/NN
of/IN
5.6/CD
million/CD
shares/NNS
outstanding/JJ
./.
The/DT
transaction/NN
is/VBZ
subject/JJ
to/TO
approval/NN
by/IN
a/DT
panel/NN
of/IN
disinterested/JJ
directors/NNS
,/,
the/DT
company/NN
said/VBD
,/,
adding/VBG
that/IN
shareholder/NN
approval/NN
is/VBZ
n't/RB
needed/VBN
./.
Ajinomoto/NNP
Co./NNP
,/,
a/DT
Tokyo-based/JJ
food-processing/NN
concern/NN
,/,
said/VBD
net/JJ
income/NN
in/IN
its/PRP$
first/JJ
half/NN
rose/VBD
8.9/CD
%/NN
to/TO
8.2/CD
billion/CD
yen/NNS
$/$
57.7/CD
million/CD
7.54/CD
billion/CD
yen/NNS
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
in/IN
the/DT
six/CD
months/NNS
ended/VBN
Sept./NNP
30/CD
were/VBD
up/RB
4.5/CD
%/NN
to/TO
229.03/CD
billion/CD
yen/NNS
from/IN
219.27/CD
billion/CD
yen/NNS
./.
Sales/NNS
were/VBD
higher/JJR
in/IN
all/DT
of/IN
the/DT
company/NN
's/POS
business/NN
categories/NNS
,/,
with/IN
the/DT
biggest/JJS
growth/NN
coming/VBG
in/IN
sales/NNS
of/IN
foodstuffs/NNS
such/JJ
as/IN
margarine/NN
,/,
coffee/NN
and/CC
frozen/JJ
food/NN
,/,
which/WDT
rose/VBD
6.3/CD
%/NN
./.
Oils/NNS
and/CC
fats/NNS
also/RB
did/VBD
well/RB
,/,
posting/VBG
a/DT
5.3/CD
%/NN
sales/NNS
increase/NN
./.
Sales/NNS
in/IN
the/DT
category/NN
that/WDT
includes/VBZ
pharmaceuticals/NNS
,/,
amino/JJ
acids/NNS
and/CC
chemicals/NNS
rose/VBD
4.7/CD
%/NN
./.
Ajinomoto/NNP
predicted/VBD
sales/NNS
in/IN
the/DT
current/JJ
fiscal/JJ
year/NN
ending/VBG
next/IN
March/NNP
31/CD
of/IN
480/CD
billion/CD
yen/NNS
,/,
compared/VBN
with/IN
460.05/CD
billion/CD
yen/NNS
in/IN
fiscal/JJ
1989/CD
./.
It/PRP
said/VBD
it/PRP
expects/VBZ
full-year/JJ
net/NN
of/IN
16/CD
billion/CD
yen/NNS
,/,
compared/VBN
with/IN
15/CD
billion/CD
yen/NNS
in/IN
the/DT
latest/JJS
year/NN
./.
The/DT
New/NNP
York/NNP
Mercantile/NNP
Exchange/NNP
,/,
the/DT
world/NN
's/POS
chief/JJ
oil/NN
futures/NNS
marketplace/NN
,/,
is/VBZ
at/IN
a/DT
critical/JJ
juncture/NN
./.
Several/JJ
longtime/JJ
observers/NNS
of/IN
the/DT
commodities/NNS
industry/NN
think/VBP
the/DT
fortunes/NNS
of/IN
the/DT
Merc/NNP
over/IN
the/DT
next/JJ
decade/NN
will/MD
be/VB
determined/VBN
to/TO
a/DT
large/JJ
extent/NN
by/IN
how/WRB
well/RB
its/PRP$
new/JJ
natural/JJ
gas/NN
futures/NNS
contract/NN
does/VBZ
and/CC
how/WRB
successful/JJ
its/PRP$
new/JJ
president/NN
is/VBZ
in/IN
raising/VBG
the/DT
level/NN
of/IN
compliance/NN
by/IN
floor/NN
traders/NNS
with/IN
exchange/NN
and/CC
Commodity/NNP
Futures/NNP
Trading/NNP
Commission/NNP
rules/NNS
./.
If/IN
the/DT
exchange/NN
falters/VBZ
in/IN
these/DT
moves/NNS
,/,
they/PRP
say/VBP
,/,
it/PRP
might/MD
once/RB
again/RB
fall/VB
behind/IN
its/PRP$
chief/JJ
New/NNP
York/NNP
competitor/NN
,/,
the/DT
Commodity/NNP
Exchange/NNP
./.
On/IN
Friday/NNP
,/,
the/DT
Merc/NNP
's/POS
board/NN
announced/VBD
that/IN
it/PRP
had/VBD
approved/VBN
Sabine/NNP
Pipe/NNP
Line/NNP
Co./NNP
's/POS
Henry/NNP
Hub/NNP
in/IN
Erath/NNP
,/,
La./NNP
,/,
as/IN
the/DT
delivery/NN
site/NN
for/IN
its/PRP$
long-awaited/JJ
natural/JJ
gas/NN
futures/NNS
contract/NN
./.
It/PRP
also/RB
said/VBD
that/IN
it/PRP
would/MD
start/VB
trading/VBG
the/DT
contract/NN
as/RB
soon/RB
as/IN
the/DT
CFTC/NNP
approved/VBD
it/PRP
./.
The/DT
CFTC/NNP
has/VBZ
90/CD
days/NNS
to/TO
respond/VB
to/TO
such/JJ
applications/NNS
./.
The/DT
Merc/NNP
first/RB
started/VBD
working/VBG
on/IN
developing/VBG
this/DT
contract/NN
in/IN
1984/CD
./.
Only/RB
three/CD
weeks/NNS
earlier/RBR
,/,
the/DT
Merc/NNP
had/VBD
turned/VBN
to/TO
one/CD
of/IN
its/PRP$
own/JJ
executives/NNS
,/,
40-year-old/JJ
R./NNP
Patrick/NNP
Thompson/NNP
,/,
to/TO
replace/VB
Rosemary/NNP
T./NNP
McFadden/NNP
as/IN
president/NN
./.
Mr./NNP
Thompson/NNP
is/VBZ
believed/VBN
to/TO
have/VB
a/DT
mandate/NN
from/IN
the/DT
board/NN
of/IN
directors/NNS
to/TO
help/VB
improve/VB
the/DT
Merc/NNP
's/POS
tarnished/JJ
reputation/NN
as/IN
an/DT
exchange/NN
whose/WP$
floor/NN
traders/NNS
do/VBP
n't/RB
follow/VB
the/DT
rules/NNS
very/RB
well/RB
./.
Ms./NNP
McFadden/NNP
had/VBD
been/VBN
forced/VBN
out/RB
in/IN
July/NNP
in/IN
a/DT
bitter/JJ
power/NN
struggle/NN
with/IN
Z./NNP
Lou/NNP
Guttman/NNP
,/,
chairman/NN
and/CC
a/DT
longtime/JJ
floor/NN
trader/NN
on/IN
the/DT
exchange/NN
./.
Mr./NNP
Guttman/NNP
told/VBD
one/CD
person/NN
familiar/JJ
with/IN
the/DT
New/NNP
York/NNP
exchanges/NNS
during/IN
the/DT
search/NN
for/IN
a/DT
replacement/NN
that/IN
he/PRP
was/VBD
looking/VBG
for/IN
a/DT
president/NN
who/WP
would/MD
be/VB
``/``
responsive/JJ
to/TO
the/DT
needs/NNS
of/IN
the/DT
membership/NN
and/CC
the/DT
board/NN
./.
''/''
Mr./NNP
Thompson/NNP
first/RB
came/VBD
to/TO
the/DT
exchange/NN
in/IN
1981/CD
and/CC
has/VBZ
been/VBN
executive/JJ
vice/NN
president/NN
since/IN
March/NNP
1988/CD
./.
He/PRP
previously/RB
held/VBD
posts/NNS
of/IN
senior/JJ
vice/NN
president/NN
of/IN
compliance/NN
and/CC
senior/JJ
vice/NN
president/NN
and/CC
general/JJ
counsel/NN
./.
By/IN
contrast/NN
,/,
the/DT
Comex/NNP
in/IN
July/NNP
imported/VBD
a/DT
highly/RB
regarded/JJ
outsider/NN
,/,
Arnold/NNP
F./NNP
Staloff/NNP
,/,
as/IN
its/PRP$
president/NN
./.
Mr./NNP
Staloff/NNP
,/,
44/CD
,/,
was/VBD
a/DT
senior/JJ
officer/NN
of/IN
the/DT
Philadelphia/NNP
Stock/NNP
Exchange/NNP
and/CC
is/VBZ
considered/VBN
a/DT
specialist/NN
in/IN
new/JJ
financial/JJ
products/NNS
./.
Mr./NNP
Thompson/NNP
is/VBZ
n't/RB
bereft/JJ
of/IN
experience/NN
with/IN
new/JJ
products/NNS
,/,
however/RB
./.
For/IN
the/DT
past/JJ
two/CD
years/NNS
,/,
he/PRP
said/VBD
,/,
he/PRP
and/CC
the/DT
exchange/NN
's/POS
research/NN
department/NN
have/VBP
been/VBN
working/VBG
on/IN
the/DT
new/JJ
natural/JJ
gas/NN
contract/NN
,/,
seeking/VBG
a/DT
good/JJ
delivery/NN
site/NN
and/CC
studying/VBG
the/DT
natural/JJ
gas/NN
market/NN
./.
``/``
Our/PRP$
members/NNS
are/VBP
eager/JJ
to/TO
begin/VB
trading/VBG
this/DT
contract/NN
,/,
so/IN
we/PRP
expect/VBP
no/DT
difficulty/NN
in/IN
attracting/VBG
locals/NNS
to/TO
the/DT
natural/JJ
gas/NN
pit/NN
,/,
''/''
he/PRP
said/VBD
./.
The/DT
educational/JJ
effort/NN
of/IN
teaching/VBG
companies/NNS
in/IN
the/DT
natural/JJ
gas/NN
industry/NN
how/WRB
to/TO
use/VB
the/DT
futures/NNS
to/TO
hedge/VB
would/MD
have/VB
to/TO
continue/VB
for/IN
another/DT
a/DT
year/NN
or/CC
two/CD
,/,
he/PRP
added/VBD
./.
The/DT
Merc/NNP
's/VBZ
extremely/RB
successful/JJ
contracts/NNS
in/IN
crude/NN
oil/NN
,/,
gasoline/NN
and/CC
heating/NN
oil/NN
have/VBP
made/VBN
it/PRP
the/DT
largest/JJS
futures/NNS
exchange/NN
in/IN
New/NNP
York/NNP
,/,
and/CC
third/JJ
behind/IN
the/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
and/CC
Chicago/NNP
Mercantile/NNP
Exchange/NNP
./.
In/IN
a/DT
recent/JJ
interview/NN
,/,
Mr./NNP
Thompson/NNP
said/VBD
the/DT
biggest/JJS
problem/NN
facing/VBG
all/DT
commodity/NN
exchanges/NNS
was/VBD
one/NN
of/IN
image/NN
./.
Earlier/RBR
this/DT
year/NN
,/,
the/DT
U.S./NNP
attorney/NN
indicted/VBD
45/CD
floor/NN
traders/NNS
and/CC
one/CD
clerk/NN
at/IN
the/DT
two/CD
big/JJ
Chicago/NNP
exchanges/NNS
./.
Federal/NNP
authorities/NNS
in/IN
New/NNP
York/NNP
started/VBD
investigating/VBG
exchanges/NNS
in/IN
May/NNP
,/,
though/IN
no/DT
indictments/NNS
have/VB
been/VBN
handed/VBN
down/RP
there/RB
./.
So/RB
far/RB
they/PRP
have/VBP
issued/VBN
scores/NNS
of/IN
subpoenas/NNS
,/,
some/DT
of/IN
which/WDT
went/VBD
to/TO
members/NNS
of/IN
the/DT
New/NNP
York/NNP
Merc/NNP
./.
Mr./NNP
Thompson/NNP
will/MD
have/VB
to/TO
face/VB
some/DT
of/IN
the/DT
consequences/NNS
of/IN
those/DT
subpoenas/NNS
./.
In/IN
a/DT
recent/JJ
General/NNP
Accounting/NNP
Office/NNP
study/NN
,/,
the/DT
Merc/NNP
was/VBD
found/VBN
to/TO
have/VB
been/VBN
the/DT
most/RBS
lax/JJ
in/IN
enforcing/VBG
exchange/NN
rules/NNS
./.
It/PRP
levied/VBD
the/DT
smallest/JJS
number/NN
of/IN
suspensions/NNS
of/IN
traders/NNS
and/CC
fines/NNS
of/IN
the/DT
four/CD
largest/JJS
commodity/NN
exchanges/NNS
studied/VBN
over/IN
the/DT
past/JJ
five/CD
years/NNS
./.
It/PRP
also/RB
had/VBD
both/CC
the/DT
fewest/JJS
,/,
and/CC
least/JJS
experienced/JJ
,/,
investigators/NNS
per/IN
million/CD
contracts/NNS
traded/VBN
./.
The/DT
Merc/NNP
received/VBD
considerable/JJ
criticism/NN
in/IN
1987/CD
when/WRB
it/PRP
was/VBD
discovered/VBN
that/IN
its/PRP$
compliance/NN
director/NN
,/,
Kevin/NNP
P./NNP
Conway/NNP
,/,
who/WP
then/RB
was/VBD
responsible/JJ
for/IN
policing/VBG
the/DT
exchange/NN
's/POS
busy/JJ
oil/NN
and/CC
metal/NN
pits/NNS
,/,
``/``
was/VBD
engaged/VBN
in/IN
other/JJ
personal/JJ
business/NN
activities/NNS
on/IN
Exchange/NNP
time/NN
,/,
''/''
including/VBG
out-of-state/JJ
trips/NNS
,/,
according/VBG
to/TO
a/DT
New/NNP
York/NNP
Merc/NNP
report/NN
prepared/VBN
last/JJ
year/NN
./.
Mr./NNP
Conway/NNP
is/VBZ
no/RB
longer/RBR
at/IN
the/DT
exchange/NN
./.
``/``
We/PRP
had/VBD
a/DT
management/NN
breakdown/NN
in/IN
1987/CD
in/IN
terms/NNS
of/IN
compliance/NN
,/,
''/''
Mr./NNP
Thompson/NNP
says/VBZ
./.
``/``
We/PRP
recognized/VBD
the/DT
problem/NN
and/CC
took/VBD
care/NN
of/IN
it/PRP
./.
''/''
He/PRP
says/VBZ
that/IN
even/RB
if/IN
the/DT
natural/JJ
gas/NN
contract/NN
boosts/VBZ
volume/NN
at/IN
the/DT
exchange/NN
strongly/RB
,/,
the/DT
1990/CD
business/NN
plan/NN
calls/VBZ
for/IN
having/VBG
adequate/JJ
compliance/NN
people/NNS
to/TO
ensure/VB
that/IN
exchange/NN
rules/NNS
are/VBP
being/VBG
followed/VBN
./.
For/IN
years/NNS
the/DT
five/CD
New/NNP
York/NNP
exchanges/NNS
have/VBP
been/VBN
talking/VBG
about/IN
cooperating/VBG
in/IN
various/JJ
aspects/NNS
of/IN
their/PRP$
business/NN
in/IN
order/NN
to/TO
improve/VB
the/DT
efficiency/NN
of/IN
their/PRP$
operations/NNS
./.
Periodically/RB
,/,
there/EX
has/VBZ
even/RB
been/VBN
talk/NN
of/IN
mergers/NNS
between/IN
one/CD
or/CC
more/JJR
exchanges/NNS
./.
So/RB
far/RB
there/EX
is/VBZ
little/JJ
to/TO
show/VB
for/IN
such/JJ
efforts/NNS
./.
Mr./NNP
Thompson/NNP
believes/VBZ
the/DT
case/NN
for/IN
working/VBG
together/RB
is/VBZ
stronger/JJR
now/RB
than/IN
ever/RB
./.
``/``
The/DT
cost/NN
of/IN
competition/NN
has/VBZ
become/VBN
extremely/RB
high/JJ
,/,
''/''
he/PRP
says/VBZ
./.
``/``
We/PRP
must/MD
find/VB
ways/NNS
to/TO
save/VB
money/NN
for/IN
the/DT
futures/NNS
commission/NN
merchants/NNS
who/WP
do/VBP
business/NN
on/IN
our/PRP$
exchanges/NNS
./.
''/''
He/PRP
thinks/VBZ
that/IN
progress/NN
in/IN
cooperation/NN
can/MD
be/VB
made/VBN
in/IN
areas/NNS
where/WRB
no/DT
vested/JJ
interests/NNS
have/VBP
built/VBN
up/RP
./.
One/CD
of/IN
those/DT
areas/NNS
is/VBZ
the/DT
development/NN
of/IN
a/DT
hand-held/JJ
electronic/JJ
device/NN
that/WDT
would/MD
permit/VB
floor/NN
traders/NNS
to/TO
enter/VB
trades/NNS
as/IN
they/PRP
make/VBP
them/PRP
./.
The/DT
GAO/NNP
has/VBZ
recommended/VBN
the/DT
creation/NN
of/IN
a/DT
system/NN
to/TO
record/VB
trade/NN
data/NNS
so/RB
that/IN
an/DT
independent/JJ
,/,
verifiable/JJ
audit/NN
trail/NN
can/MD
be/VB
established/VBN
to/TO
prevent/VB
customer/NN
fraud/NN
./.
The/DT
Merc/NNP
is/VBZ
now/RB
cooperating/VBG
with/IN
the/DT
Comex/NNP
in/IN
developing/VBG
such/PDT
a/DT
device/NN
to/TO
provide/VB
such/PDT
an/DT
audit/NN
trail/NN
./.
The/DT
Chicago/NNP
exchanges/NNS
also/RB
are/VBP
working/VBG
on/IN
such/PDT
a/DT
device/NN
./.
Another/DT
major/JJ
electronics/NN
problem/NN
faces/VBZ
Mr./NNP
Thompson/NNP
--/:
the/DT
creation/NN
of/IN
a/DT
24-hour/JJ
trading/NN
system/NN
that/WDT
can/MD
be/VB
used/VBN
outside/IN
normal/JJ
trading/NN
hours/NNS
./.
In/IN
January/NNP
,/,
the/DT
New/NNP
York/NNP
Merc/NNP
signed/VBD
a/DT
letter/NN
of/IN
intent/NN
with/IN
the/DT
Chicago/NNP
Merc/NNP
as/IN
a/DT
preliminary/JJ
step/NN
to/TO
joining/VBG
their/PRP$
electronic/JJ
system/NN
called/VBD
Globex/NNP
./.
But/CC
in/IN
May/NNP
,/,
the/DT
Chicago/NNP
Merc/NNP
said/VBD
it/PRP
was/VBD
looking/VBG
into/IN
creating/VBG
a/DT
common/JJ
system/NN
with/IN
the/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
,/,
and/CC
it/PRP
suspended/VBD
negotiations/NNS
with/IN
the/DT
New/NNP
York/NNP
Merc/NNP
./.
Mr./NNP
Thompson/NNP
says/VBZ
his/PRP$
exchange/NN
is/VBZ
n't/RB
waiting/VBG
for/IN
the/DT
results/NNS
of/IN
the/DT
Chicago/NNP
exchanges/NNS
'/POS
cooperation/NN
./.
It/PRP
recently/RB
began/VBD
a/DT
pilot/JJ
program/NN
to/TO
test/VB
an/DT
electronic/JJ
trading/NN
system/NN
called/VBN
ATS\/2/NNP
,/,
the/DT
automated/JJ
trading/NN
system/NN
created/VBN
by/IN
the/DT
International/NNP
Commodities/NNP
Clearing/NNP
House/NNP
./.
Looking/VBG
ahead/RB
to/TO
commodity/NN
markets/NNS
this/DT
week/NN
:/:
Copper/NN
Michael/NNP
Frawley/NNP
,/,
metals/NNS
trader/NN
for/IN
PaineWebber/NNP
Inc./NNP
in/IN
New/NNP
York/NNP
,/,
said/VBD
there/EX
is/VBZ
good/JJ
technical/JJ
support/NN
between/IN
$/$
1.10/CD
and/CC
$/$
1.12/CD
a/DT
pound/NN
for/IN
December/NNP
copper/NN
,/,
which/WDT
ended/VBD
Friday/NNP
at/IN
$/$
1.1580/CD
a/DT
pound/NN
,/,
up/RB
1.6/CD
cents/NNS
./.
He/PRP
views/VBZ
the/DT
$/$
1.10/CD
to/TO
$/$
1.12/CD
range/NN
as/IN
a/DT
buying/NN
opportunity/NN
and/CC
considers/VBZ
the/DT
market/NN
oversold/JJ
./.
``/``
I/PRP
think/VBP
the/DT
market/NN
could/MD
pop/VB
up/RP
to/TO
the/DT
$/$
1.22/CD
to/TO
$/$
1.25/CD
level/NN
without/IN
too/RB
much/JJ
difficulty/NN
,/,
''/''
he/PRP
said/VBD
./.
But/CC
he/PRP
said/VBD
it/PRP
wo/MD
n't/RB
climb/VB
further/RBR
and/CC
he/PRP
expects/VBZ
it/PRP
to/TO
remain/VB
in/IN
a/DT
trading/NN
range/NN
between/IN
$/$
1.10/CD
and/CC
$/$
1.25/CD
./.
He/PRP
noted/VBD
that/IN
the/DT
equity/NN
markets/NNS
will/MD
set/VB
the/DT
tone/NN
for/IN
the/DT
industrial/JJ
metals/NNS
this/DT
week/NN
and/CC
traders/NNS
should/MD
keep/VB
an/DT
eye/NN
on/IN
Wall/NNP
Street/NNP
./.
William/NNP
O'Neill/NNP
,/,
research/NN
director/NN
for/IN
Elders/NNP
Futures/NNP
Inc./NNP
in/IN
New/NNP
York/NNP
,/,
said/VBD
for/IN
a/DT
rally/NN
to/TO
occur/VB
,/,
there/EX
must/MD
be/VB
demand/NN
from/IN
the/DT
Far/NNP
East/NNP
./.
He/PRP
added/VBD
that/IN
talk/NN
of/IN
strike/NN
settlements/NNS
at/IN
producing/VBG
mines/NNS
has/VBZ
been/VBN
fully/RB
discounted/VBN
./.
However/RB
,/,
to/TO
resume/VB
the/DT
bull/NN
trend/NN
,/,
according/VBG
to/TO
Mr./NNP
O'Neill/NNP
,/,
copper/NN
would/MD
have/VB
to/TO
close/VB
over/IN
$/$
1.19/CD
./.
He/PRP
said/VBD
there/EX
are/VBP
two/CD
reports/NNS
this/DT
week/NN
that/WDT
might/MD
affect/VB
prices/NNS
:/:
the/DT
purchasing/NN
managers/NNS
report/NN
on/IN
Wednesday/NNP
and/CC
the/DT
unemployment/NN
report/NN
on/IN
Friday/NNP
./.
Precious/JJ
Metals/NNS
Friday/NNP
's/POS
strong/JJ
price/NN
gains/NNS
confirmed/VBD
a/DT
turnaround/NN
in/IN
the/DT
precious/JJ
metals/NNS
markets/NNS
,/,
according/VBG
to/TO
PaineWebber/NNP
's/POS
Mr./NNP
Frawley/NNP
./.
``/``
Most/JJS
traders/NNS
will/MD
be/VB
looking/VBG
to/TO
buy/VB
{/(
on/IN
}/)
pullbacks/NNS
,/,
''/''
he/PRP
said/VBD
./.
He/PRP
thought/VBD
the/DT
moves/NNS
in/IN
the/DT
metals/NNS
last/JJ
week/NN
were/VBD
most/RBS
influenced/VBN
by/IN
the/DT
uncertainty/NN
in/IN
the/DT
equity/NN
and/CC
other/JJ
financial/JJ
markets/NNS
./.
According/VBG
to/TO
Mr./NNP
Frawley/NNP
,/,
floor/NN
traders/NNS
say/VBP
there/EX
is/VBZ
good/JJ
support/NN
for/IN
December/NNP
gold/NN
in/IN
the/DT
$/$
374/CD
to/TO
$/$
375/CD
per/IN
ounce/NN
area/NN
,/,
around/IN
$/$
5.20/CD
an/DT
ounce/NN
for/IN
December/NNP
silver/NN
and/CC
in/IN
the/DT
$/$
485/CD
to/TO
$/$
490/CD
an/DT
ounce/NN
range/NN
for/IN
January/NNP
platinum/NN
./.
William/NNP
O'Neill/NNP
,/,
research/NN
director/NN
for/IN
Elders/NNP
Futures/NNP
Inc./NNP
in/IN
New/NNP
York/NNP
,/,
said/VBD
the/DT
price/NN
action/NN
for/IN
all/DT
of/IN
last/JJ
week/NN
is/VBZ
the/DT
best/JJS
he/PRP
has/VBZ
seen/VBN
on/IN
a/DT
weekly/JJ
basis/NN
in/IN
more/RBR
than/IN
a/DT
year/NN
./.
He/PRP
said/VBD
last/JJ
week/NN
's/POS
activity/NN
in/IN
gold/NN
could/MD
portend/VB
a/DT
move/NN
to/TO
$/$
390/CD
an/DT
ounce/NN
for/IN
the/DT
December/NNP
contract/NN
./.
He/PRP
also/RB
said/VBD
traders/NNS
should/MD
keep/VB
an/DT
eye/NN
on/IN
the/DT
stock/NN
market/NN
,/,
because/IN
``/``
if/IN
the/DT
stock/NN
market/NN
rallies/VBZ
,/,
that/DT
could/MD
spell/VB
trouble/NN
for/IN
the/DT
precious/JJ
metals/NNS
./.
''/''
He/PRP
said/VBD
traders/NNS
should/MD
be/VB
on/IN
the/DT
lookout/NN
for/IN
how/WRB
metals/NNS
producers/NNS
react/VBP
to/TO
this/DT
rally/NN
./.
``/``
I/PRP
expect/VBP
to/TO
see/VB
some/DT
selling/NN
,/,
but/CC
will/MD
they/PRP
kill/VB
this/DT
one/NN
as/IN
they/PRP
have/VBP
every/DT
rally/NN
in/IN
the/DT
recent/JJ
past/NN
''/''
by/IN
selling/VBG
and/CC
locking/VBG
in/RP
prices/NNS
for/IN
their/PRP$
production/NN
?/.
He/PRP
noted/VBD
that/IN
for/IN
the/DT
first/JJ
time/NN
in/IN
months/NNS
there/EX
was/VBD
some/DT
light/JJ
investor/NN
interest/NN
in/IN
the/DT
metals/NNS
./.
Grains/NNS
And/CC
Soybeans/NNS
Prices/NNS
this/DT
week/NN
will/MD
likely/RB
be/VB
dominated/VBN
by/IN
reports/NNS
on/IN
the/DT
progress/NN
of/IN
the/DT
corn/NN
and/CC
soybean/NN
harvest/NN
as/RB
well/RB
as/IN
by/IN
speculation/NN
about/IN
more/JJR
purchases/NNS
of/IN
U.S./NNP
crops/NNS
by/IN
the/DT
Soviet/NNP
Union/NNP
./.
In/IN
recent/JJ
weeks/NNS
,/,
warm/JJ
and/CC
dry/JJ
weather/NN
has/VBZ
sped/VBN
the/DT
Midwest/NNP
harvest/NN
and/CC
that/DT
is/VBZ
permitting/VBG
farmers/NNS
to/TO
rebuild/VB
the/DT
stockpiles/NNS
that/WDT
were/VBD
cut/VBN
by/IN
the/DT
1988/CD
drought/NN
./.
If/IN
the/DT
weather/NN
allowed/VBD
farmers/NNS
to/TO
work/VB
in/IN
their/PRP$
fields/NNS
over/IN
the/DT
weekend/NN
,/,
many/JJ
Midwest/NNP
grain/NN
elevators/NNS
will/MD
probably/RB
sell/VB
futures/NNS
contracts/NNS
today/NN
at/IN
the/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
in/IN
order/NN
to/TO
hedge/VB
their/PRP$
weekend/NN
purchases/NNS
from/IN
farmers/NNS
./.
That/DT
selling/NN
of/IN
futures/NNS
contracts/NNS
by/IN
elevators/NNS
is/VBZ
what/WP
helps/VBZ
keep/VB
downward/JJ
pressure/NN
on/IN
crop/NN
prices/NNS
during/IN
the/DT
harvest/NN
./.
Traders/NNS
will/MD
also/RB
watch/VB
for/IN
whether/IN
the/DT
Soviet/NNP
Union/NNP
continues/VBZ
its/PRP$
traditional/JJ
fall/NN
buying/NN
of/IN
U.S./NNP
grain/NN
./.
So/RB
far/RB
this/DT
month/NN
,/,
the/DT
Soviets/NNPS
have/VBP
bought/VBN
about/RB
7.2/CD
million/CD
metric/JJ
tons/NNS
of/IN
U.S./NNP
corn/NN
./.
There/EX
may/MD
be/VB
some/DT
activity/NN
in/IN
soybean/NN
prices/NNS
this/DT
week/NN
as/IN
investors/NNS
try/VBP
to/TO
get/VB
rid/JJ
of/IN
the/DT
contract/NN
for/IN
November/NNP
delivery/NN
./.
Investors/NNS
usually/RB
do/VBP
n't/RB
want/VB
to/TO
take/VB
physical/JJ
delivery/NN
of/IN
a/DT
contract/NN
,/,
preferring/VBG
instead/RB
to/TO
profit/VB
from/IN
its/PRP$
price/NN
swings/NNS
and/CC
then/RB
end/VB
any/DT
obligation/NN
to/TO
take/VB
delivery/NN
or/CC
make/VB
delivery/NN
as/IN
it/PRP
nears/VBZ
expiration/NN
./.
Employees/NNS
of/IN
the/DT
Globe/NNP
and/CC
Mail/NNP
,/,
a/DT
Thomson/NNP
Corp./NNP
newspaper/NN
in/IN
Toronto/NNP
,/,
voted/VBD
to/TO
accept/VB
a/DT
tentative/JJ
contract/NN
agreement/NN
Saturday/NNP
,/,
averting/VBG
a/DT
strike/NN
at/IN
Canada/NNP
's/POS
leading/JJ
daily/NN
./.
Under/IN
the/DT
terms/NNS
of/IN
the/DT
three-year/JJ
contract/NN
,/,
similar/JJ
to/TO
one/CD
reached/VBN
at/IN
Torstar/NNP
Corp./NNP
's/POS
Toronto/NNP
Star/NNP
newspaper/NN
earlier/RBR
this/DT
month/NN
,/,
the/DT
500/CD
Globe/NNP
and/CC
Mail/NNP
workers/NNS
will/MD
see/VB
a/DT
raise/NN
of/IN
8/CD
%/NN
in/IN
the/DT
contract/NN
's/POS
first/JJ
year/NN
and/CC
7/CD
%/NN
in/IN
each/DT
of/IN
the/DT
following/JJ
two/CD
years/NNS
./.
Lorne/NNP
Slotnick/NNP
,/,
vice/NN
chairman/NN
of/IN
the/DT
Southern/NNP
Ontario/NNP
Newspaper/NNP
Guild/NNP
,/,
the/DT
union/NN
representing/VBG
the/DT
workers/NNS
,/,
said/VBD
Thomson/NNP
made/VBD
significant/JJ
concessions/NNS
in/IN
the/DT
final/JJ
round/NN
of/IN
talks/NNS
./.
In/IN
addition/NN
to/TO
wage/NN
increases/NNS
,/,
the/DT
union/NN
negotiated/VBD
improved/JJ
vacation/NN
plans/NNS
,/,
benefit/NN
packages/NNS
and/CC
pension/NN
plans/NNS
,/,
Mr./NNP
Slotnick/NNP
said/VBD
./.
He/PRP
said/VBD
more/JJR
than/IN
70/CD
%/NN
of/IN
the/DT
bargaining/NN
unit/NN
voted/VBD
in/IN
favor/NN
of/IN
the/DT
agreement/NN
./.
Wall/NNP
Street/NNP
is/VBZ
just/RB
about/RB
ready/JJ
to/TO
line/VB
the/DT
bird/NN
cage/NN
with/IN
paper/NN
stocks/NNS
./.
For/IN
three/CD
years/NNS
,/,
a/DT
healthy/JJ
economy/NN
and/CC
the/DT
export-boosting/JJ
effects/NNS
of/IN
a/DT
weak/JJ
dollar/NN
propelled/VBD
sales/NNS
and/CC
earnings/NNS
of/IN
the/DT
big/JJ
paper/NN
companies/NNS
to/TO
record/NN
levels/NNS
./.
As/IN
the/DT
good/JJ
times/NNS
rolled/VBD
they/PRP
more/RBR
than/IN
doubled/VBD
their/PRP$
prices/NNS
for/IN
pulp/NN
,/,
a/DT
raw/JJ
material/NN
used/VBN
in/IN
all/DT
sorts/NNS
of/IN
paper/NN
,/,
to/TO
$/$
830/CD
a/DT
metric/JJ
ton/NN
this/DT
past/JJ
spring/NN
from/IN
$/$
380/CD
a/DT
ton/NN
at/IN
the/DT
start/NN
of/IN
1986/CD
./.
But/CC
now/RB
the/DT
companies/NNS
are/VBP
getting/VBG
into/IN
trouble/NN
because/IN
they/PRP
undertook/VBD
a/DT
record/JJ
expansion/NN
program/NN
while/IN
they/PRP
were/VBD
raising/VBG
prices/NNS
sharply/RB
./.
Third-quarter/JJ
profits/NNS
fell/VBD
at/IN
several/JJ
companies/NNS
./.
``/``
Put/VB
your/PRP$
money/NN
in/IN
a/DT
good/JJ
utility/NN
or/CC
bank/NN
stock/NN
,/,
not/RB
a/DT
paper/NN
company/NN
,/,
''/''
advises/VBZ
George/NNP
Adler/NNP
of/IN
Smith/NNP
Barney/NNP
./.
Other/JJ
analysts/NNS
are/VBP
nearly/RB
as/RB
pessimistic/JJ
./.
Gary/NNP
Palmero/NNP
of/IN
Oppenheimer/NNP
&/CC
Co./NNP
expects/VBZ
a/DT
30/CD
%/NN
decline/NN
in/IN
earnings/NNS
between/IN
now/RB
and/CC
1991/CD
for/IN
``/``
commodity-oriented/JJ
''/''
paper/NN
companies/NNS
,/,
which/WDT
account/VBP
for/IN
the/DT
majority/NN
of/IN
the/DT
industry/NN
./.
Robert/NNP
Schneider/NNP
of/IN
Duff/NNP
&/CC
Phelps/NNP
sees/VBZ
paper-company/JJ
stock/NN
prices/NNS
falling/VBG
10/CD
%/NN
to/TO
15/CD
%/NN
in/IN
1990/CD
,/,
perhaps/RB
25/CD
%/NN
if/IN
there/EX
's/VBZ
a/DT
recession/NN
./.
Paper/NN
companies/NNS
concede/VBP
that/DT
business/NN
has/VBZ
been/VBN
off/RB
recently/RB
./.
But/CC
they/PRP
attribute/VBP
much/JJ
of/IN
the/DT
weakness/NN
to/TO
customer/NN
inventory/NN
reductions/NNS
./.
Generally/RB
they/PRP
maintain/VBP
that/IN
,/,
barring/VBG
a/DT
recession/NN
and/CC
a/DT
further/JJ
strengthening/NN
of/IN
the/DT
dollar/NN
against/IN
foreign/JJ
currencies/NNS
,/,
the/DT
industry/NN
is/VBZ
n't/RB
headed/VBN
for/IN
a/DT
prolonged/JJ
slump/NN
./.
``/``
It/PRP
wo/MD
n't/RB
be/VB
an/DT
earthshaking/JJ
drop/NN
,/,
''/''
a/DT
Weyerhaeuser/NNP
spokesman/NN
says/VBZ
./.
Last/JJ
week/NN
Mr./NNP
Adler/NNP
lowered/VBD
his/PRP$
rating/NN
from/IN
hold/VB
to/TO
``/``
avoid/VB
''/''
on/IN
Boise/NNP
Cascade/NNP
,/,
Champion/NNP
International/NNP
,/,
Great/NNP
Northern/NNP
Nekoosa/NNP
,/,
International/NNP
Paper/NNP
,/,
Louisiana/NNP
Pacific/NNP
and/CC
Weyerhaeuser/NNP
./.
Oppenheimer/NNP
's/POS
Mr./NNP
Palmero/NNP
,/,
meanwhile/RB
,/,
is/VBZ
steering/VBG
clear/RB
of/IN
Gaylord/NNP
Container/NNP
,/,
Stone/NNP
Container/NNP
and/CC
Federal/NNP
Paper/NNP
Board/NNP
./.
Mr./NNP
Schneider/NNP
is/VBZ
cool/JJ
to/TO
Georgia/NNP
Pacific/NNP
and/CC
Abitibi-Price/NNP
./.
Lawrence/NNP
Ross/NNP
of/IN
PaineWebber/NNP
would/MD
avoid/VB
Union/NNP
Camp/NNP
./.
The/DT
companies/NNS
in/IN
question/NN
believe/VBP
the/DT
analysts/NNS
are/VBP
too/RB
pessimistic/JJ
./.
Great/NNP
Northern/NNP
Nekoosa/NNP
said/VBD
,/,
``/``
The/DT
odds/NNS
of/IN
the/DT
dire/JJ
predictions/NNS
about/IN
us/PRP
being/VBG
right/JJ
are/VBP

small/JJ
./.
''/''
International/NNP
Paper/NNP
emphasizes/VBZ
that/IN
it/PRP
is/VBZ
better/RBR
positioned/VBN
than/IN
most/JJS
companies/NNS
for/IN
the/DT
coming/JJ
overcapacity/NN
because/IN
its/PRP$
individual/JJ
mills/NNS
can/MD
make/VB
more/JJR
than/IN
one/CD
grade/NN
of/IN
paper/NN
./.
A/DT
Boise-Cascade/NNP
spokesman/NN
referred/VBD
to/TO
a/DT
speech/NN
by/IN
Chairman/NNP
John/NNP
Fery/NNP
,/,
in/IN
which/WDT
he/PRP
said/VBD
that/IN
markets/NNS
generally/RB
are/VBP
stable/JJ
,/,
although/IN
some/DT
risk/NN
of/IN
further/JJ
price/NN
deterioration/NN
exists/VBZ
./.
Stone/NNP
Container/NNP
Chairman/NNP
Roger/NNP
Stone/NNP
said/VBD
that/IN
,/,
unlike/IN
for/IN
some/DT
other/JJ
paper/NN
products/NNS
,/,
demand/NN
for/IN
Stone/NNP
's/POS
principal/JJ
commodity/NN
,/,
unbleached/JJ
containerboard/NN
,/,
remains/VBZ
strong/JJ
./.
He/PRP
expects/VBZ
the/DT
price/NN
for/IN
that/DT
product/NN
to/TO
rise/VB
even/RB
more/RBR
next/JJ
year/NN
./.
Gaylord/NNP
Container/NNP
said/VBD
analysts/NNS
are/VBP
skeptical/JJ
of/IN
it/PRP
because/IN
it/PRP
's/VBZ
carrying/VBG
a/DT
lot/NN
of/IN
debt/NN
./.
Champion/NNP
International/NNP
said/VBD
,/,
``/``
We/PRP
've/VBP
gotten/VBN
our/PRP$
costs/NNS
down/RB
and/CC
we/PRP
're/VBP
better/RBR
positioned/VBN
for/IN
any/DT
cyclical/JJ
downturn/NN
than/IN
we/PRP
've/VBP
ever/RB
been/VBN
./.
''/''
Louisiana/NNP
Pacific/NNP
and/CC
Georgia/NNP
Pacific/NNP
said/VBD
a/DT
number/NN
of/IN
other/JJ
analysts/NNS
are/VBP
recommending/VBG
them/PRP
because/RB
of/IN
their/PRP$
strong/JJ
wood-products/NNS
business/NN
./.
Federal/NNP
Paper/NNP
Board/NNP
said/VBD
,/,
``/``
We/PRP
're/VBP
not/RB
as/RB
exposed/JJ
as/IN
the/DT
popular/JJ
perception/NN
of/IN
us/PRP
./.
''/''
The/DT
company/NN
explained/VBD
that/IN
its/PRP$
main/JJ
product/NN
,/,
bleached/JJ
paperboard/NN
,/,
which/WDT
goes/VBZ
into/IN
some/DT
advertising/NN
materials/NNS
and/CC
white/JJ
boxes/NNS
,/,
historically/RB
does/VBZ
n't/RB
have/VB
sharp/JJ
price/NN
swings/NNS
./.
Because/IN
the/DT
stock/NN
prices/NNS
of/IN
some/DT
paper/NN
companies/NNS
already/RB
reflect/VBP
an/DT
expected/JJ
profit/NN
slump/NN
,/,
PaineWebber/NNP
's/POS
Mr./NNP
Ross/NNP
says/VBZ
he/PRP
thinks/VBZ
that/IN
next/JJ
year/NN
the/DT
share/NN
prices/NNS
of/IN
some/DT
companies/NNS
may/MD
fall/VB
at/IN
most/RBS
only/RB
5/CD
%/NN
to/TO
10/CD
%/NN
./.
A/DT
company/NN
such/JJ
as/IN
Federal/NNP
Paper/NNP
Board/NNP
may/MD
be/VB
overly/RB
discounted/VBN
and/CC
looks/VBZ
``/``
tempting/JJ
''/''
to/TO
him/PRP
,/,
he/PRP
says/VBZ
,/,
though/IN
he/PRP
is/VBZ
n't/RB
yet/RB
recommending/VBG
the/DT
shares/NNS
./.
Wall/NNP
Street/NNP
is/VBZ
n't/RB
avoiding/VBG
everything/NN
connected/VBN
with/IN
paper/NN
./.
Mr./NNP
Palmero/NNP
recommends/VBZ
Temple-Inland/NNP
,/,
explaining/VBG
that/IN
it/PRP
is/VBZ
``/``
virtually/RB
the/DT
sole/JJ
major/JJ
paper/NN
company/NN
not/RB
undergoing/VBG
a/DT
major/JJ
capacity/NN
expansion/NN
,/,
''/''
and/CC
thus/RB
should/MD
be/VB
able/JJ
to/TO
lower/VB
long-term/JJ
debt/NN
substantially/RB
next/JJ
year/NN
./.
A/DT
Temple-Inland/NNP
spokesman/NN
said/VBD
the/DT
company/NN
expects/VBZ
record/JJ
earnings/NNS
in/IN
1989/CD
,/,
and/CC
``/``
we/PRP
're/VBP
still/RB
pretty/RB
bullish/JJ
''/''
on/IN
1990/CD
./.
The/DT
analysts/NNS
say/VBP
their/PRP$
gloomy/JJ
forecasts/NNS
have/VBP
a/DT
flip/JJ
side/NN
./.
Some/DT
take/VBP
a/DT
warm/JJ
view/NN
of/IN
consumer-oriented/JJ
paper/NN
companies/NNS
,/,
which/WDT
buy/VBP
pulp/NN
from/IN
the/DT
commodity/NN
producers/NNS
and/CC
should/MD
benefit/VB
from/IN
the/DT
expected/JJ
declines/NNS
in/IN
pulp/NN
prices/NNS
./.
Estimates/NNS
on/IN
how/WRB
much/JJ
pulp/NN
prices/NNS
will/MD
fall/VB
next/JJ
year/NN
currently/RB
run/VBP
between/IN
$/$
150/CD
and/CC
$/$
250/CD
a/DT
metric/JJ
ton/NN
./.
Analysts/NNS
agree/VBP
that/IN
the/DT
price/NN
drop/NN
should/MD
especially/RB
benefit/VB
the/DT
two/CD
big/JJ
tissue/NN
makers/NNS
,/,
Scott/NNP
Paper/NNP
and/CC
Kimberly-Clark/NNP
./.
A/DT
spokesman/NN
for/IN
Scott/NNP
says/VBZ
that/IN
assuming/VBG
the/DT
price/NN
of/IN
pulp/NN
continues/VBZ
to/TO
soften/VB
,/,
``/``
We/PRP
should/MD
do/VB
well/RB
./.
''/''
Shoney/NNP
's/POS
Inc./NNP
said/VBD
it/PRP
will/MD
report/VB
a/DT
write-off/NN
of/IN
$/$
2.5/CD
million/CD
,/,
or/CC
seven/CD
cents/NNS
a/DT
share/NN
,/,
for/IN
its/PRP$
fourth/JJ
quarter/NN
ended/VBN
yesterday/NN
./.
The/DT
restaurant/NN
operator/NN
cited/VBD
transaction/NN
costs/NNS
from/IN
its/PRP$
1988/CD
recapitalization/NN
as/IN
a/DT
result/NN
of/IN
a/DT
$/$
160/CD
million/CD
restructuring/NN
of/IN
its/PRP$
bank/NN
debt/NN
./.
The/DT
write-off/NN
will/MD
be/VB
reported/VBN
as/IN
an/DT
extraordinary/JJ
item/NN
in/IN
the/DT
company/NN
's/POS
1989/CD
operating/NN
results/NNS
./.
In/IN
addition/NN
,/,
the/DT
effective/JJ
interest/NN
rate/NN
on/IN
the/DT
$/$
410/CD
million/CD
of/IN
total/JJ
remaining/VBG
bank/NN
debt/NN
after/IN
the/DT
restructuring/NN
is/VBZ
10.66/CD
%/NN
./.
The/DT
combined/JJ
effect/NN
of/IN
these/DT
changes/NNS
is/VBZ
expected/VBN
to/TO
save/VB
the/DT
company/NN
about/RB
$/$
4/CD
million/CD
in/IN
interest/NN
expenses/NNS
next/IN
year/NN
,/,
or/CC
six/CD
cents/NNS
a/DT
share/NN
./.
Shoney/NNP
's/POS
said/VBD
the/DT
latest/JJS
restructuring/NN
affected/VBD
bank/NN
indebtedness/NN
that/WDT
was/VBD
incurred/VBN
to/TO
finance/VB
$/$
585/CD
million/CD
of/IN
the/DT
company/NN
's/POS
$/$
728/CD
million/CD
recapitalization/NN
that/WDT
took/VBD
place/NN
in/IN
The/DT
company/NN
has/VBZ
made/VBN
payments/NNS
of/IN
$/$
175/CD
million/CD
against/IN
the/DT
original/JJ
$/$
585/CD
million/CD
of/IN
bank/NN
debt/NN
incurred/VBN
in/IN
connection/NN
with/IN
the/DT
recapitalization/NN
./.
These/DT
payments/NNS
consisted/VBD
of/IN
$/$
54/CD
million/CD
in/IN
scheduled/JJ
payments/NNS
and/CC
$/$
121/CD
million/CD
in/IN
prepayments/NNS
,/,
funded/VBN
by/IN
$/$
82.8/CD
million/CD
from/IN
operating/NN
cash/NN
flow/NN
,/,
zero-coupon/JJ
subordinated/JJ
debt/NN
and/CC
assets/NNS
sales/NNS
./.
ABB/NNP
Asea/NNP
Brown/NNP
Boveri/NNP
B.V./NNP
said/VBD
it/PRP
signed/VBD
a/DT
contract/NN
for/IN
the/DT
largest-ever/JJ
power/NN
plant/NN
order/NN
in/IN
the/DT
Netherlands/NNPS
./.
ABB/NNP
said/VBD
the/DT
contract/NN
,/,
signed/VBN
with/IN
the/DT
Dutch/JJ
utility/NN
N.V/NNP
./.
Energieproduktiebedrijf/NNP
UNA/NNP
,/,
is/VBZ
valued/VBN
in/IN
excess/NN
of/IN
$/$
200/CD
million/CD
./.
The/DT
accord/NN
is/VBZ
for/IN
a/DT
turbogenerator/NN
plant/NN
at/IN
the/DT
coal-fired/JJ
power/NN
station/NN
Hemweg/NNP
in/IN
Amsterdam/NNP
./.
ABB/NNP
Asea/NNP
Brown/NNP
Boveri/NNP
is/VBZ
the/DT
Dutch/JJ
unit/NN
of/IN
the/DT
Swedish-Swiss/JJ
electrical/JJ
engineering/NN
group/NN
ABB/NNP
Asea/NNP
Brown/NNP
Boveri/NNP
AG/NNP
./.
ABB/NNP
said/VBD
a/DT
significant/JJ
portion/NN
of/IN
the/DT
order/NN
will/MD
be/VB
placed/VBN
with/IN
Dutch/JJ
subcontractors/NNS
,/,
adding/VBG
that/IN
a/DT
group/NN
has/VBZ
been/VBN
set/VBN
up/RP
for/IN
this/DT
purpose/NN
./.
The/DT
Dutch/JJ
utility/NN
firm/NN
serves/VBZ
the/DT
Amsterdam/NNP
and/CC
Utrecht/NNP
areas/NNS
./.
The/DT
planned/JJ
turbogenerator/NN
plant/NN
is/VBZ
expected/VBN
to/TO
go/VB
into/IN
operation/NN
in/IN
1994/CD
./.
Nissan/NNP
Motor/NNP
Co./NNP
expects/VBZ
net/JJ
income/NN
to/TO
reach/VB
120/CD
billion/CD
yen/NNS
U.S./NNP
$/$
857/CD
million/CD
its/PRP$
current/JJ
fiscal/JJ
year/NN
,/,
up/RB
from/IN
114.6/CD
billion/CD
yen/NNS
in/IN
the/DT
previous/JJ
year/NN
,/,
Yutaka/NNP
Kume/NNP
,/,
president/NN
,/,
said/VBD
./.
Mr./NNP
Kume/NNP
made/VBD
the/DT
earnings/NNS
projection/NN
for/IN
fiscal/JJ
1990/CD
,/,
ending/VBG
next/JJ
March/NNP
31/CD
,/,
in/IN
an/DT
interview/NN
with/IN
U.S./NNP
automotive/JJ
writers/NNS
attending/VBG
the/DT
Tokyo/NNP
Motor/NNP
Show/NNP
./.
The/DT
executive/NN
said/VBD
that/IN
the/DT
anticipated/JJ
earnings/NN
increase/NN
is/VBZ
fairly/RB
modest/JJ
because/IN
Nissan/NNP
is/VBZ
spending/VBG
heavily/RB
to/TO
bolster/VB
its/PRP$
dealership/NN
network/NN
in/IN
Japan/NNP
and/CC
because/RB
of/IN
currency-exchange/JJ
fluctuations/NNS
./.
During/IN
the/DT
next/JJ
decade/NN
,/,
Mr./NNP
Kume/NNP
said/VBD
,/,
Nissan/NNP
plans/VBZ
to/TO
boost/VB
overseas/JJ
vehicle/NN
production/NN
sufficiently/RB
to/TO
account/VB
for/IN
a/DT
majority/NN
of/IN
sales/NNS
outside/IN
Japan/NNP
./.
Last/JJ
year/NN
,/,
Mr./NNP
Kume/NNP
said/VBD
,/,
Nissan/NNP
exported/VBD
slightly/RB
over/IN
one/CD
million/CD
vehicles/NNS
,/,
and/CC
produced/VBD
570,000/CD
cars/NNS
and/CC
trucks/NNS
at/IN
its/PRP$
factories/NNS
in/IN
North/NNP
America/NNP
,/,
Europe/NNP
and/CC
Australia/NNP
./.
But/CC
by/IN
1992/CD
,/,
he/PRP
added/VBD
,/,
Nissan/NNP
will/MD
build/VB
one/CD
million/CD
vehicles/NNS
a/DT
year/NN
outside/IN
Japan/NNP
,/,
or/CC
sufficient/JJ
to/TO
equal/VB
exports/NNS
./.
``/``
By/IN
the/DT
end/NN
of/IN
the/DT
1990s/NNS
,/,
''/''
he/PRP
said/VBD
,/,
``/``
we/PRP
want/VBP
to/TO
be/VB
producing/VBG
roughly/RB
two/CD
vehicles/NNS
overseas/RB
for/IN
every/DT
vehicle/NN
that/IN
we/PRP
export/VBP
from/IN
Japan/NNP
./.
''/''
That/WDT
will/MD
involve/VB
a/DT
substantial/JJ
increase/NN
in/IN
overseas/JJ
manufacturing/NN
capacity/NN
,/,
he/PRP
acknowledged/VBD
,/,
but/CC
did/VBD
n't/RB
provide/VB
specific/JJ
details/NNS
./.
National/NNP
Intergroup/NNP
Inc./NNP
said/VBD
it/PRP
expects/VBZ
to/TO
report/VB
a/DT
charge/NN
of/IN
$/$
5.3/CD
million/CD
related/VBN
to/TO
the/DT
sale/NN
of/IN
its/PRP$
aluminum/NN
unit/NN
's/POS
extrusion/NN
division/NN
for/IN
the/DT
third/JJ
quarter/NN
./.
The/DT
company/NN
said/VBD
it/PRP
has/VBZ
agreed/VBN
to/TO
sell/VB
the/DT
extrusion/NN
division/NN
for/IN
$/$
15/CD
million/CD
to/TO
R.D./NNP
Werner/NNP
Co./NNP
,/,
a/DT
closely/RB
held/VBN
firm/NN
based/VBN
in/IN
Greenville/NNP
,/,
Pa/NNP
./.
The/DT
charge/NN
is/VBZ
offset/VBN
by/IN
an/DT
after-tax/JJ
gain/NN
of/IN
about/RB
$/$
30/CD
million/CD
in/IN
the/DT
quarter/NN
from/IN
the/DT
previously/RB
announced/VBN
pact/NN
to/TO
sell/VB
National/NNP
Aluminum/NNP
's/POS
rolling/NN
division/NN
./.
National/NNP
Intergroup/NNP
in/IN
the/DT
year-ago/JJ
third/JJ
quarter/NN
earned/VBD
$/$
22.5/CD
million/CD
,/,
or/CC
97/CD
cents/NNS
a/DT
share/NN
,/,
including/VBG
a/DT
gain/NN
of/IN
$/$
18/CD
million/CD
from/IN
the/DT
sale/NN
of/IN
a/DT
steel/NN
tube/NN
company/NN
./.
Revenue/NN
was/VBD
$/$
778.6/CD
million/CD
./.
The/DT
company/NN
also/RB
said/VBD
it/PRP
continues/VBZ
to/TO
explore/VB
all/DT
options/NNS
concerning/VBG
the/DT
possible/JJ
sale/NN
of/IN
National/NNP
Aluminum/NNP
's/POS
54.5/CD
%/NN
stake/NN
in/IN
an/DT
aluminum/NN
smelter/NN
in/IN
Hawesville/NNP
,/,
Ky/NNP
./.
The/DT
sale/NN
of/IN
the/DT
extrusion/NN
division/NN
is/VBZ
subject/JJ
to/TO
audit/VB
adjustments/NNS
for/IN
working/VBG|NN
capital/NN
changes/NNS
through/IN
the/DT
closing/NN
./.
The/DT
agreement/NN
also/RB
provides/VBZ
for/IN
potential/JJ
payments/NNS
of/IN
additional/JJ
proceeds/NNS
to/TO
National/NNP
Aluminum/NNP
over/IN
the/DT
next/JJ
two/CD
years/NNS
,/,
depending/VBG
on/IN
the/DT
plant/NN
's/POS
shipping/NN
levels/NNS
./.
The/DT
extrusion/NN
unit/NN
produces/VBZ
bare/JJ
and/CC
painted/JJ
custom/NN
extrusions/NNS
for/IN
building/NN
products/NNS
and/CC
construction/NN
industries/NNS
./.
In/IN
fiscal/JJ
1989/CD
,/,
it/PRP
had/VBD
sales/NNS
of/IN
about/RB
$/$
40/CD
million/CD
and/CC
an/DT
operating/NN
loss/NN
of/IN
$/$
1.5/CD
million/CD
./.
The/DT
municipal/JJ
bond/NN
market/NN
is/VBZ
bracing/VBG
for/IN
tough/JJ
times/NNS
through/IN
the/DT
end/NN
of/IN
the/DT
year/NN
as/IN
it/PRP
struggles/VBZ
to/TO
absorb/VB
an/DT
oversupply/NN
of/IN
bonds/NNS
and/CC
two/CD
of/IN
its/PRP$
best/JJS
customers/NNS
turn/VBP
into/IN
sellers/NNS
./.
Commercial/JJ
banks/NNS
and/CC
property\/casualty/JJ
insurers/NNS
,/,
which/WDT
together/RB
own/VBP
about/RB
36/CD
%/NN
of/IN
all/DT
municipal/JJ
bonds/NNS
,/,
have/VBP
been/VBN
dumping/VBG
their/PRP$
securities/NNS
for/IN
weeks/NNS
./.
Last/JJ
week/NN
,/,
traders/NNS
said/VBD
,/,
there/EX
were/VBD
three/CD
institutional/JJ
sellers/NNS
for/IN
every/DT
buyer/NN
./.
``/``
Every/DT
day/NN
we/PRP
're/VBP
getting/VBG
new/JJ
bid/NN
lists/NNS
''/''
from/IN
would-be/JJ
sellers/NNS
,/,
one/CD
trader/NN
said/VBD
./.
``/``
Most/JJS
dealers/NNS
can/MD
not/RB
continue/VB
to/TO
absorb/VB
this/DT
supply/NN
./.
''/''
As/IN
a/DT
result/NN
,/,
yields/NNS
on/IN
long-term/JJ
muni/JJ
bonds/NNS
now/RB
stand/VBP
at/IN
about/RB
95/CD
%/NN
of/IN
long-term/JJ
Treasury/NNP
yields/NNS
,/,
the/DT
highest/JJS
such/JJ
level/NN
in/IN
more/RBR
than/IN
two/CD
years/NNS
./.
``/``
There/EX
is/VBZ
incredible/JJ
negative/JJ
psychology/NN
building/VBG
in/IN
the/DT
market/NN
,/,
''/''
said/VBD
Donna/NNP
Avedisian/NNP
,/,
a/DT
vice/NN
president/NN
at/IN
Merrill/NNP
Lynch/NNP
&/CC
Co/NNP
./.
``/``
People/NNS
are/VBP
very/RB
concerned/JJ
about/IN
who/WP
is/VBZ
going/VBG
to/TO
step/VB
up/IN
to/TO
the/DT
plate/NN
and/CC
buy/VB
municipal/JJ
bonds/NNS
in/IN
the/DT
absence/NN
of/IN
institutional/JJ
buyers/NNS
./.
''/''
The/DT
yield/NN
on/IN
a/DT
group/NN
of/IN
25/CD
revenue/NN
bonds/NNS
compiled/VBN
by/IN
the/DT
Bond/NNP
Buyer/NNP
,/,
a/DT
trade/NN
publication/NN
,/,
now/RB
exceeds/VBZ
7.50/CD
%/NN
./.
At/IN
this/DT
week/NN
's/POS
New/NNP
York/NNP
City/NNP
bond/NN
sale/NN
,/,
traders/NNS
expect/VBP
yields/NNS
on/IN
the/DT
20-year/JJ
New/NNP
York/NNP
bonds/NNS
to/TO
nearly/RB
match/VB
the/DT
7.9/CD
%/NN
yield/NN
on/IN
30-year/JJ
Treasury/NNP
bonds/NNS
./.
For/IN
an/DT
investor/NN
in/IN
the/DT
28/CD
%/NN
federal/JJ
tax/NN
bracket/NN
,/,
7.9/CD
%/NN
tax-free/JJ
is/VBZ
the/DT
same/JJ
as/IN
10.38/CD
%/NN
on/IN
a/DT
taxable/JJ
investment/NN
./.
That/DT
's/VBZ
a/DT
taxable-equivalent/JJ
yield/NN
nearly/RB
three/CD
percentage/NN
points/NNS
more/JJR
than/IN
the/DT
current/JJ
yield/NN
on/IN
30-year/JJ
Treasury/NNP
bonds/NNS
./.
How/WRB
quickly/RB
things/NNS
change/VBP
./.
This/DT
past/JJ
summer/NN
,/,
investors/NNS
'/POS
appetite/NN
for/IN
municipal/JJ
bonds/NNS
seemed/VBD
insatiable/JJ
./.
Individuals/NNS
eager/JJ
for/IN
tax-free/JJ
income/NN
drove/VBD
up/RP
bond/NN
prices/NNS
,/,
making/VBG
state/NN
and/CC
local/JJ
government/NN
debt/NN
one/CD
of/IN
the/DT
best-performing/JJ
types/NNS
of/IN
fixed-income/NN
investments/NNS
during/IN
the/DT
period/NN
./.
But/CC
while/IN
analysts/NNS
say/VBP
that/IN
municipal/JJ
bonds/NNS
still/RB
offer/VBP
good/JJ
value/NN
,/,
you/PRP
would/MD
n't/RB
know/VB
it/PRP
by/IN
the/DT
way/NN
institutional/JJ
investors/NNS
are/VBP
rushing/VBG
to/TO
dump/VB
their/PRP$
holdings/NNS
./.
Bond/NN
market/NN
analysts/NNS
say/VBP
the/DT
institutional/JJ
selling/NN
was/VBD
triggered/VBN
by/IN
several/JJ
factors/NNS
./.
Big/JJ
banks/NNS
such/JJ
as/IN
Chemical/NNP
Bank/NNP
and/CC
Chase/NNP
Manhattan/NNP
,/,
which/WDT
have/VBP
been/VBN
taking/VBG
heavy/JJ
charges/NNS
to/TO
expand/VB
their/PRP$
Third/JJ
World/NNP
loan-loss/NN
reserves/NNS
,/,
are/VBP
n't/RB
looking/VBG
for/IN
tax-exempt/JJ
income/NN
./.
``/``
We/PRP
do/VBP
n't/RB
need/VB
the/DT
shelter/NN
of/IN
tax-free/JJ
bonds/NNS
,/,
''/''
said/VBD
a/DT
spokeswoman/NN
at/IN
Chemical/NNP
./.
In/IN
recent/JJ
weeks/NNS
,/,
traders/NNS
said/VBD
,/,
Chemical/NNP
has/VBZ
sold/VBN
more/JJR
than/IN
$/$
1/CD
billion/CD
of/IN
tax-free/JJ
bonds/NNS
./.
The/DT
spokeswoman/NN
confirmed/VBD
that/IN
the/DT
bank/NN
has/VBZ
significantly/RB
reduced/VBN
its/PRP$
muni/JJ
holdings/NNS
,/,
but/CC
could/MD
n't/RB
immediately/RB
confirm/VB
the/DT
amount/NN
./.
Insurance/NN
companies/NNS
are/VBP
rushing/VBG
to/TO
sell/VB
before/IN
the/DT
end/NN
of/IN
the/DT
year/NN
,/,
when/WRB
some/DT
of/IN
their/PRP$
tax/NN
benefits/NNS
associated/VBN
with/IN
municipal/JJ
bonds/NNS
will/MD
be/VB
phased/VBN
out/RP
./.
There/EX
is/VBZ
speculation/NN
that/IN
property\/casualty/JJ
firms/NNS
will/MD
sell/VB
even/RB
more/JJR
munis/NNS
as/IN
they/PRP
scramble/VBP
to/TO
raise/VB
cash/NN
to/TO
pay/VB
claims/NNS
related/VBN
to/TO
Hurricane/NNP
Hugo/NNP
and/CC
the/DT
Northern/NNP
California/NNP
earthquake/NN
./.
Fundamental/JJ
factors/NNS
are/VBP
at/IN
work/NN
as/RB
well/RB
./.
Muni/JJ
bond/NN
holders/NNS
are/VBP
worried/JJ
about/IN
the/DT
impact/NN
of/IN
a/DT
slowing/VBG
economy/NN
on/IN
tax/NN
revenue/NN
,/,
at/IN
a/DT
time/NN
when/WRB
many/JJ
state/NN
and/CC
local/JJ
governments/NNS
already/RB
face/VBP
budget/NN
deficits/NNS
and/CC
huge/JJ
spending/NN
needs/NNS
./.
The/DT
recent/JJ
natural/JJ
disasters/NNS
,/,
and/CC
the/DT
need/NN
of/IN
many/JJ
other/JJ
cities/NNS
to/TO
rebuild/VB
crumbling/VBG
infrastructure/NN
,/,
suggests/VBZ
that/IN
supply/NN
of/IN
new/JJ
issues/NNS
will/MD
continue/VB
to/TO
rise/VB
sharply/RB
--/:
even/RB
as/IN
demand/NN
tapers/VBZ
off/RP
./.
``/``
There/EX
is/VBZ
just/RB
so/RB
much/RB
going/VBG
on/RP
that/IN
it/PRP
's/VBZ
difficult/JJ
to/TO
pick/VB
just/RB
one/CD
factor/NN
that/WDT
's/VBZ
driving/VBG
the/DT
market/NN
,/,
''/''
said/VBD
Ronald/NNP
Ian/NNP
Heller/NNP
,/,
vice/NN
president/NN
at/IN
First/NNP
Chicago/NNP
Capital/NNP
Markets/NNP
Inc./NNP
,/,
a/DT
subsidiary/NN
of/IN
First/NNP
Chicago/NNP
Corp/NNP
./.
Some/DT
of/IN
the/DT
recent/JJ
selling/NN
could/MD
actually/RB
be/VB
considered/VBN
a/DT
positive/JJ
sign/NN
./.
Mutual/JJ
funds/NNS
,/,
for/IN
example/NN
,/,
are/VBP
said/VBN
to/TO
be/VB
selling/VBG
existing/VBG
municipal/JJ
bonds/NNS
to/TO
raise/VB
cash/NN
to/TO
buy/VB
new/JJ
issues/NNS
./.
Because/IN
municipal/JJ
bonds/NNS
yields/NNS
have/VBP
risen/VBN
at/IN
a/DT
time/NN
when/WRB
interest/NN
rates/NNS
generally/RB
have/VBP
fallen/VBN
,/,
some/DT
portfolio/NN
managers/NNS
are/VBP
assuming/VBG
that/IN
bonds/NNS
bought/VBN
now/RB
will/MD
appreciate/VB
in/IN
value/NN
as/IN
the/DT
municipal/JJ
bond/NN
market/NN
rebounds/VBZ
./.
Ms./NNP
Avedisian/NNP
believes/VBZ
that/IN
the/DT
mutual/JJ
funds/NNS
are/VBP
selling/VBG
muni/JJ
bonds/NNS
that/WDT
have/VBP
a/DT
negative/JJ
convexity/NN
--/:
those/DT
that/WDT
have/VBP
appreciated/VBN
in/IN
price/NN
slowly/RB
relative/JJ
to/TO
the/DT
decline/NN
in/IN
interest/NN
rates/NNS
./.
Such/JJ
bonds/NNS
,/,
she/PRP
says/VBZ
,/,
are/VBP
those/DT
that/WDT
are/VBP
nearing/VBG
their/PRP$
call/NN
date/NN
./.
But/CC
traders/NNS
said/VBD
the/DT
market/NN
's/POS
tone/NN
could/MD
pick/VB
up/RP
this/DT
week/NN
if/IN
New/NNP
York/NNP
City/NNP
's/POS
$/$
787/CD
million/CD
bond/NN
offering/NN
goes/VBZ
well/RB
./.
The/DT
offering/NN
will/MD
include/VB
$/$
729/CD
million/CD
of/IN
20-year/JJ
tax-exempt/JJ
bonds/NNS
and/CC
$/$
57.8/CD
million/CD
of/IN
taxable/JJ
bonds/NNS
./.
A/DT
few/JJ
weeks/NNS
ago/RB
,/,
New/NNP
York/NNP
sold/VBD
$/$
750/CD
million/CD
of/IN
tax-exempts/NNS
./.
New/NNP
York/NNP
City/NNP
bonds/NNS
have/VBP
been/VBN
beaten/VBN
down/IN
for/IN
three/CD
straight/JJ
weeks/NNS
./.
On/IN
Friday/NNP
,/,
some/DT
issues/NNS
fell/VBD
nearly/RB
one/CD
point/NN
,/,
or/CC
close/RB
to/TO
$/$
10/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
./.
The/DT
sell-off/NN
in/IN
New/NNP
York/NNP
City/NNP
bonds/NNS
was/VBD
triggered/VBN
by/IN
concerns/NNS
about/IN
the/DT
city/NN
's/POS
financial/JJ
health/NN
and/CC
political/JJ
uncertainty/NN
in/IN
view/NN
of/IN
the/DT
impending/JJ
mayoral/JJ
election/NN
./.
The/DT
city/NN
's/POS
economy/NN
is/VBZ
growing/VBG
weaker/JJR
and/CC
expenditures/NNS
are/VBP
rising/VBG
as/IN
tax/NN
revenue/NN
is/VBZ
falling/VBG
./.
``/``
The/DT
city/NN
has/VBZ
issued/VBN
so/RB
much/JJ
supply/NN
recently/RB
that/IN
some/DT
people/NNS
are/VBP
getting/VBG
a/DT
little/JJ
concerned/JJ
./.
They/PRP
'd/MD
like/VB
to/TO
see/VB
some/DT
other/JJ
names/NNS
in/IN
their/PRP$
portfolios/NNS
,/,
''/''
said/VBD
Michael/NNP
S./NNP
Appelbaum/NNP
,/,
first/JJ
vice/NN
president/NN
at/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
./.
But/CC
he/PRP
thinks/VBZ
investors/NNS
may/MD
be/VB
overreacting/VBG
to/TO
the/DT
market/NN
's/POS
problems/NNS
./.
Overall/RB
,/,
he/PRP
says/VBZ
,/,
municipal/JJ
prices/NNS
are/VBP
``/``
very/RB
cheap/JJ
''/''
and/CC
represent/VB
an/DT
``/``
excellent/JJ
buying/NN
opportunity/NN
./.
''/''
Friday/NNP
's/POS
Market/NN
Activity/NN
Treasury/NNP
bonds/NNS
fell/VBD
sharply/RB
on/IN
confusion/NN
about/IN
this/DT
week/NN
's/POS
Treasury/NNP
debt/NN
auction/NN
and/CC
rumors/NNS
that/IN
a/DT
major/JJ
Japanese/JJ
investor/NN
was/VBD
unloading/VBG
large/JJ
amounts/NNS
of/IN
long-term/JJ
bonds/NNS
./.
The/DT
Treasury/NNP
's/POS
benchmark/NN
30-year/JJ
bond/NN
ended/VBD
at/IN
a/DT
price/NN
of/IN
102/CD
2\/32/CD
,/,
down/RB
nearly/RB
5\/8/CD
point/NN
from/IN
Thursday/NNP
,/,
or/CC
about/RB
$/$
6.25/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
./.
The/DT
issue/NN
's/POS
yield/NN
rose/VBD
to/TO
7.93/CD
%/NN
from/IN
7.88/CD
%/NN
./.
Late/RB
Thursday/NNP
,/,
the/DT
Treasury/NNP
said/VBD
it/PRP
needed/VBD
to/TO
raise/VB
$/$
17/CD
billion/CD
quickly/RB
and/CC
would/MD
do/VB
so/RB
by/IN
issuing/VBG
new/JJ
securities/NNS
this/DT
week/NN
./.
Credit/NN
market/NN
analysts/NNS
expected/VBD
the/DT
Treasury/NNP
to/TO
cancel/VB
today/NN
's/POS
three-month/JJ
and/CC
six-month/JJ
sale/NN
and/CC
to/TO
sell/VB
$/$
17/CD
billion/CD
of/IN
cash/NN
management/NN
bills/NNS
./.
Instead/RB
,/,
the/DT
Treasury/NNP
announced/VBD
it/PRP
would/MD
sell/VB
$/$
2/CD
billion/CD
of/IN
51-day/JJ
cash/NN
management/NN
bills/NNS
today/NN
and/CC
said/VBD
that/IN
the/DT
weekly/JJ
sale/NN
of/IN
$/$
15.6/CD
billion/CD
of/IN
three-month/JJ
and/CC
six-month/JJ
bills/NNS
will/MD
take/VB
place/NN
today/NN
,/,
as/RB
usual/JJ
,/,
but/CC
the/DT
sale/NN
will/MD
settle/VB
tomorrow/NN
instead/RB
of/IN
Thursday/NNP
./.
By/IN
moving/VBG
the/DT
settlement/NN
date/NN
ahead/RB
,/,
the/DT
Treasury/NNP
can/MD
raise/VB
money/NN
under/IN
the/DT
$/$
2.87/CD
trillion/CD
debt/NN
ceiling/NN
that/WDT
is/VBZ
in/IN
effect/NN
through/IN
tomorrow/NN
,/,
after/IN
which/WDT
it/PRP
reverts/VBZ
to/TO
$/$
2.8/CD
trillion/CD
./.
The/DT
market/NN
also/RB
was/VBD
hurt/VBN
by/IN
rumors/NNS
that/IN
Nippon/NNP
Kangyo/NNP
Kakumaru/NNP
,/,
a/DT
Japanese/JJ
brokerage/NN
firm/NN
,/,
was/VBD
unloading/VBG
some/DT
of/IN
the/DT
30-year/JJ
bonds/NNS
it/PRP
recently/RB
purchased/VBD
./.
One/CD
dealer/NN
said/VBD
the/DT
talk/NN
was/VBD
that/IN
the/DT
firm/NN
sold/VBD
about/RB
$/$
500/CD
million/CD
of/IN
bellwether/JJ
30-year/JJ
bonds/NNS
./.
The/DT
firm/NN
is/VBZ
thought/VBN
to/TO
have/VB
purchased/VBN
up/IN
to/TO
$/$
3/CD
billion/CD
of/IN
30-year/JJ
bonds/NNS
in/IN
a/DT
buying/JJ
spree/NN
on/IN
Wednesday/NNP
and/CC
the/DT
previous/JJ
Thursday/NNP
./.
Dealers/NNS
say/VBP
the/DT
firm/NN
apparently/RB
has/VBZ
wanted/VBN
to/TO
publicize/VB
its/PRP$
recent/JJ
buying/NN
and/CC
subsequent/JJ
selling/NN
of/IN
30-year/JJ
bonds/NNS
by/IN
using/VBG
Cantor/NNP
Fitzgerald/NNP
Securities/NNP
Corp./NNP
as/IN
a/DT
broker/NN
./.
Cantor/NNP
provides/VBZ
price/NN
quotes/NNS
to/TO
Telerate/NNP
Systems/NNP
Inc./NNP
,/,
a/DT
widely/RB
used/VBN
electronic/JJ
system/NN
./.
Nippon/NNP
Kangyo/NNP
's/POS
moves/NNS
puzzled/VBD
traders/NNS
and/CC
created/VBN
confusion/NN
among/IN
potential/JJ
investors/NNS
,/,
many/DT
of/IN
whom/WP
decided/VBD
to/TO
stay/VB
out/IN
of/IN
the/DT
market/NN
./.
As/IN
a/DT
result/NN
of/IN
its/PRP$
large-scale/JJ
buying/NN
,/,
some/DT
analysts/NNS
now/RB
say/VBP
that/DT
liquidity/NN
,/,
or/CC
the/DT
ability/NN
to/TO
easily/RB
buy/VB
and/CC
sell/VB
,/,
has/VBZ
been/VBN
constrained/VBN
in/IN
the/DT
benchmark/JJ
Treasury/NNP
bond/NN
issue/NN
./.
In/IN
other/JJ
markets/NNS
:/:
--/:
The/DT
junk/NN
bonds/NNS
of/IN
RJR/NNP
Nabisco/NNP
Inc./NNP
rallied/VBD
Friday/NNP
on/IN
news/NN
that/IN
the/DT
company/NN
is/VBZ
selling/VBG
its/PRP$
candy/NN
bar/NN
brands/NNS
to/TO
Nestle/NNP
Foods/NNP
Corp./NNP
for/IN
$/$
370/CD
million/CD
./.
The/DT
sale/NN
price/NN
,/,
which/WDT
was/VBD
above/IN
Wall/NNP
Street/NNP
expectations/NNS
,/,
sent/VBD
many/JJ
RJR/NNP
securities/NNS
up/RB
by/IN
one/CD
point/NN
./.
``/``
It/PRP
shows/VBZ
that/IN
there/EX
are/VBP
buyers/NNS
of/IN
high-quality/JJ
assets/NNS
at/IN
high/JJ
prices/NNS
in/IN
today/NN
's/POS
market/NN
,/,
''/''
said/VBD
Robert/NNP
Long/NNP
,/,
managing/NN
director/NN
and/CC
head/NN
of/IN
the/DT
high-yield/JJ
research/NN
department/NN
at/IN
First/NNP
Boston/NNP
Corp/NNP
./.
Many/JJ
of/IN
the/DT
RJR/NNP
securities/NNS
,/,
which/WDT
had/VBD
been/VBN
trading/VBG
near/IN
their/PRP$
52-week/JJ
lows/NNS
earlier/RBR
in/IN
the/DT
session/NN
,/,
bounced/VBD
back/RP
after/IN
the/DT
company/NN
's/POS
announcement/NN
that/IN
it/PRP
agreed/VBD
to/TO
sell/VB
its/PRP$
Baby/NNP
Ruth/NNP
,/,
Butterfinger/NNP
and/CC
Pearson/NNP
candy/NN
businesses/NNS
to/TO
Nestle/NNP
Foods/NNP
,/,
a/DT
unit/NN
of/IN
the/DT
Swiss-based/JJ
food/NN
concern/NN
./.
The/DT
sale/NN
,/,
expected/VBN
to/TO
close/VB
before/IN
the/DT
end/NN
of/IN
the/DT
year/NN
,/,
also/RB
includes/VBZ
a/DT
manufacturing/NN
plant/NN
in/IN
Franklin/NNP
Park/NNP
,/,
Ill/NNP
./.
RJR/NNP
's/POS
subordinated/JJ
discount/NN
debentures/NNS
of/IN
2001/CD
,/,
which/WDT
traded/VBD
as/RB
low/JJ
as/IN
45/CD
Friday/NNP
,/,
finished/VBD
the/DT
day/NN
at/IN
46/CD
7\/8/CD
./.
Other/JJ
RJR/NNP
securities/NNS
also/RB
closed/VBD
higher/JJR
./.
RJR/NNP
Holdings/NNP
Capital/NNP
Corp./NNP
's/POS
14.7/CD
%/NN
convertible/JJ
pay-in-kind/JJ
securities/NNS
maturing/VBG
in/IN
2009/CD
closed/VBD
1\/2/CD
higher/JJR
at/IN
86/CD
1\/2/CD
after/IN
trading/VBG
as/RB
low/JJ
as/IN
85/CD
1\/4/CD
./.
Most/RBS
other/JJ
junk/NN
bond/NN
issues/NNS
finished/VBD
a/DT
quarter-point/NN
lower/JJR
on/IN
rumors/NNS
that/IN
Campeau/NNP
Corp./NNP
was/VBD
filing/VBG
for/IN
protection/NN
from/IN
creditors/NNS
under/IN
Chapter/NN
11/CD
of/IN
the/DT
Bankruptcy/NNP
Code/NNP
./.
A/DT
spokesman/NN
for/IN
Campeau/NNP
called/VBD
the/DT
rumors/NNS
``/``
ridiculous/JJ
./.
''/''
Most/JJS
investment-grade/JJ
bonds/NNS
fell/VBD
3\/8/CD
to/TO
1\/2/CD
point/NN
./.
--/:
Mortgage/NN
securities/NNS
fell/VBD
7\/32/CD
to/TO
8\/32/CD
but/CC
held/VBD
up/IN
better/RBR
than/IN
intermediate/JJ
Treasurys/NNPS
./.
Dealers/NNS
said/VBD
some/DT
defensive/JJ
investors/NNS
were/VBD
buyers/NNS
of/IN
mortgages/NNS
,/,
as/IN
were/VBD
dealers/NNS
seeking/VBG
collateral/NN
for/IN
REMICs/NNS
priced/VBN
earlier/RBR
last/JJ
week/NN
./.
Among/IN
major/JJ
issues/NNS
,/,
Government/NNP
National/NNP
Mortgage/NNP
Association/NNP
9/CD
%/NN
securities/NNS
for/IN
November/NNP
delivery/NN
ended/VBD
at/IN
98/CD
12\/32/CD
,/,
down/RB
8\/32/CD
point/NN
for/IN
a/DT
yield/NN
of/IN
about/RB
9.35/CD
%/NN
to/TO
a/DT
12-year/JJ
average/JJ
life/NN
assumption/NN
./.
The/DT
premium/NN
the/DT
elderly/JJ
pay/NN
for/IN
coverage/NN
of/IN
doctor/NN
's/POS
bills/NNS
under/IN
Part/NNP
B/NNP
of/IN
the/DT
Medicare/NNP
health/NN
insurance/NN
plan/NN
will/MD
rise/VB
to/TO
$/$
29/CD
a/DT
month/NN
in/IN
1990/CD
from/IN
$/$
27.90/CD
,/,
the/DT
Department/NNP
of/IN
Health/NNP
and/CC
Human/NNP
Services/NNP
said/VBD
./.
In/IN
addition/NN
,/,
a/DT
second/JJ
Part/NNP
B/NNP
premium/NN
to/TO
cover/VB
the/DT
cost/NN
of/IN
the/DT
new/JJ
program/NN
of/IN
insurance/NN
against/IN
catastrophic/JJ
illness/NN
will/MD
rise/VB
to/TO
$/$
4.90/CD
a/DT
month/NN
from/IN
$/$
4/CD
,/,
if/IN
Congress/NNP
does/VBZ
n't/RB
change/VB
the/DT
program/NN
./.
The/DT
House/NNP
has/VBZ
voted/VBN
to/TO
repeal/VB
most/JJS
of/IN
the/DT
Catastrophic/NNP
Coverage/NNP
Act/NNP
of/IN
1988/CD
,/,
however/RB
,/,
which/WDT
would/MD
end/VB
the/DT
monthly/JJ
catastrophic-care/NN
premium/NN
,/,
as/RB
well/RB
as/IN
an/DT
unpopular/JJ
income/NN
surtax/NN
paid/VBN
by/IN
about/RB
40/CD
%/NN
of/IN
the/DT
wealthier/JJR
Medicare/NNP
beneficiaries/NNS
./.
Under/IN
a/DT
less-sweeping/JJ
Senate/NNP
plan/NN
,/,
the/DT
catastrophic-care/NN
monthly/JJ
premium/NN
would/MD
continue/VB
,/,
rising/VBG
to/TO
$/$
4.90/CD
next/JJ
year/NN
,/,
but/CC
the/DT
surtax/NN
would/MD
be/VB
abolished/VBN
./.
Medicare/NNP
Part/NNP
B/NNP
pays/VBZ
80/CD
%/NN
of/IN
a/DT
beneficiary/NN
's/POS
allowable/JJ
doctor/NN
's/POS
bills/NNS
after/IN
an/DT
annual/JJ
deductible/JJ
of/IN
$/$
75/CD
./.
The/DT
Catastrophic/NNP
Coverage/NNP
Act/NNP
would/MD
add/VB
a/DT
stop-loss/JJ
provision/NN
next/JJ
year/NN
to/TO
limit/VB
the/DT
maximum/JJ
beneficiaries/NNS
must/MD
pay/VB
for/IN
doctors/NNS
./.
Both/CC
the/DT
House/NNP
and/CC
Senate/NNP
bills/NNS
to/TO
reduce/VB
the/DT
cost/NN
and/CC
coverage/NN
of/IN
the/DT
catastrophic-care/NN
plan/NN
would/MD
eliminate/VB
the/DT
cap/NN
on/IN
doctor/NN
's/POS
bills/NNS
./.
If/IN
the/DT
House/NNP
prevails/VBZ
in/IN
its/PRP$
efforts/NNS
to/TO
kill/VB
the/DT
catastrophic-care/NN
plan/NN
,/,
the/DT
monthly/JJ
Part/NNP
B/NNP
premium/NN
will/MD
be/VB
$/$
29/CD
next/JJ
year/NN
./.
If/IN
the/DT
Senate/NNP
plan/NN
prevails/VBZ
,/,
the/DT
premium/NN
will/MD
be/VB
$/$
33.90/CD
,/,
with/IN
the/DT
additional/JJ
$/$
4.90/CD
going/VBG
to/TO
pay/VB
for/IN
expanded/JJ
hospital/NN
coverage/NN
under/IN
Part/NNP
A/NNP
of/IN
Medicare/NNP
./.
Most/JJS
of/IN
Part/NNP
A/NNP
's/POS
costs/NNS
are/VBP
paid/VBN
by/IN
a/DT
payroll/NN
tax/NN
on/IN
workers/NNS
and/CC
employers/NNS
./.
Lockheed/NNP
Corp./NNP
said/VBD
it/PRP
will/MD
trim/VB
its/PRP$
Aeronautical/NNP
Systems/NNP
work/NN
force/NN
in/IN
California/NNP
and/CC
Georgia/NNP
by/IN
several/JJ
hundred/CD
workers/NNS
,/,
reflecting/VBG
the/DT
defense/NN
industry/NN
's/POS
decline/NN
./.
The/DT
Lockheed/NNP
unit/NN
has/VBZ
24,000/CD
workers/NNS
;/:
it/PRP
expects/VBZ
to/TO
make/VB
the/DT
cuts/NNS
through/IN
a/DT
combination/NN
of/IN
furloughs/NNS
,/,
attrition/NN
and/CC
retirements/NNS
./.
The/DT
reductions/NNS
should/MD
be/VB
complete/JJ
by/IN
the/DT
end/NN
of/IN
the/DT
year/NN
,/,
a/DT
spokesman/NN
said/VBD
,/,
adding/VBG
that/IN
the/DT
exact/JJ
number/NN
to/TO
be/VB
cut/VBN
has/VBZ
n't/RB
been/VBN
determined/VBN
./.
Lockheed/NNP
reported/VBD
a/DT
$/$
32/CD
million/CD
third-quarter/JJ
net/JJ
loss/NN
,/,
largely/RB
because/IN
of/IN
cost/NN
overruns/NNS
on/IN
fixed-price/JJ
military/JJ
contracts/NNS
./.
Noting/VBG
that/IN
other/JJ
defense/NN
contractors/NNS
are/VBP
complaining/VBG
of/IN
losses/NNS
on/IN
such/JJ
contracts/NNS
,/,
analysts/NNS
say/VBP
taxpayers/NNS
have/VBP
been/VBN
getting/VBG
illusionary/JJ
bargains/NNS
on/IN
weapons/NNS
systems/NNS
in/IN
recent/JJ
years/NNS
./.
Defense/NN
contractors/NNS
``/``
can/MD
not/RB
continue/VB
to/TO
get/VB
contracts/NNS
on/IN
that/DT
basis/NN
,/,
''/''
said/VBD
Howard/NNP
Rubel/NNP
,/,
an/DT
analyst/NN
with/IN
C.J./NNP
Lawrence/NNP
,/,
Morgan/NNP
Grenfell/NNP
Inc./NNP
in/IN
New/NNP
York/NNP
./.
``/``
The/DT
pain/NN
is/VBZ
too/RB
great/JJ
./.
''/''
Jim/NNP
Pattison/NNP
Industries/NNP
Ltd./NNP
,/,
one/CD
of/IN
a/DT
group/NN
of/IN
closely/RB
held/VBN
companies/NNS
owned/VBN
by/IN
entrepreneur/NN
James/NNP
Pattison/NNP
,/,
said/VBD
it/PRP
``/``
intends/VBZ
to/TO
seek/VB
control/NN
''/''
of/IN
30%-owned/JJ
Innopac/NNP
Inc./NNP
,/,
a/DT
Toronto/NNP
packaging/NN
concern/NN
./.
Jim/NNP
Pattison/NNP
Industries/NNP
,/,
a/DT
holding/VBG
company/NN
with/IN
annual/JJ
sales/NNS
of/IN
about/RB
C$/$
1.9/CD
billion/CD
,/,
largely/RB
from/IN
car/NN
dealerships/NNS
and/CC
grocery/NN
stores/NNS
,/,
did/VBD
n't/RB
elaborate/VB
on/IN
the/DT
statement/NN
,/,
and/CC
a/DT
company/NN
official/NN
declined/VBD
further/JJ
comment/NN
./.
The/DT
company/NN
said/VBD
it/PRP
currently/RB
holds/VBZ
about/RB
4.2/CD
million/CD
of/IN
Innopac/NNP
's/POS
13.8/CD
million/CD
common/JJ
shares/NNS
outstanding/JJ
,/,
which/WDT
have/VBP
an/DT
aggregate/JJ
market/NN
value/NN
of/IN
about/RB
137.8/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
117.3/CD
million/CD
Separately/NNP
,/,
Innopac/NNP
reported/VBD
a/DT
fourth-quarter/JJ
loss/NN
of/IN
about/RB
C$/$
2.6/CD
million/CD
,/,
or/CC
18/CD
Canadian/JJ
cents/NNS
a/DT
share/NN
,/,
reflecting/VBG
inventory/NN
write-downs/NNS
./.
The/DT
results/NNS
made/VBD
net/JJ
income/NN
for/IN
the/DT
year/NN
ended/VBN
Aug./NNP
31/CD
C$/$
2.7/CD
million/CD
,/,
or/CC
20/CD
Canadian/JJ
cents/NNS
a/DT
share/NN
,/,
down/RB
from/IN
C$/$
9.7/CD
million/CD
,/,
or/CC
70/CD
Canadian/JJ
cents/NNS
a/DT
share/NN
last/JJ
year/NN
./.
Revenue/NN
was/VBD
C$/$
291.6/CD
million/CD
,/,
up/RB
from/IN
C$/$
252/CD
million/CD
in/IN
1988/CD
./.
Martin/NNP
Fabi/NNP
,/,
Innopac/NNP
's/POS
president/NN
and/CC
chief/JJ
executive/NN
,/,
said/VBD
Innopac/NNP
viewed/VBD
Mr./NNP
Pattison/NNP
's/POS
decision/NN
to/TO
seek/VB
control/NN
as/IN
a/DT
``/``
very/RB
positive/JJ
''/''
move/NN
./.
``/``
I/PRP
'm/VBP
happy/JJ
that/IN
he/PRP
feels/VBZ
positively/RB
about/IN
our/PRP$
company/NN
,/,
''/''
he/PRP
said/VBD
./.
Mr./NNP
Fabi/NNP
would/MD
n't/RB
say/VB
directly/RB
whether/IN
Mr./NNP
Pattison/NNP
has/VBZ
disclosed/VBN
potential/JJ
terms/NNS
for/IN
his/PRP$
planned/JJ
bid/NN
for/IN
control/NN
./.
Among/IN
other/JJ
things/NNS
,/,
Innopac/NNP
is/VBZ
involved/VBN
in/IN
recycling/VBG
polystyrene/NN
foam/NN
products/NNS
that/WDT
are/VBP
often/RB
used/VBN
by/IN
fast/JJ
food/NN
chains/NNS
,/,
such/JJ
as/IN
McDonald/NNP
's/VBZ
Corp./NNP
,/,
for/IN
food/NN
packaging/NN
./.
A/DT
joint/JJ
venture/NN
involving/VBG
units/NNS
of/IN
Innopac/NNP
and/CC
Mobil/NNP
Corp./NNP
earlier/RBR
this/DT
year/NN
opened/VBD
the/DT
first/JJ
U.S./NNP
polystyrene/NN
recycling/NN
plant/NN
,/,
in/IN
Leominster/NNP
,/,
Mass/NNP
./.
PROGRAM/NN
TRADING/NN
is/VBZ
being/VBG
curbed/VBN
by/IN
more/JJR
securities/NNS
firms/NNS
,/,
but/CC
big/JJ
institutional/JJ
investors/NNS
are/VBP
expected/VBN
to/TO
continue/VB
the/DT
practice/NN
,/,
further/RB
roiling/VBG
the/DT
stock/NN
market/NN
./.
Bowing/VBG
to/TO
criticism/NN
,/,
Bear/NNP
Stearns/NNP
,/,
Morgan/NNP
Stanley/NNP
and/CC
Oppenheimer/NNP
joined/VBD
PaineWebber/NNP
in/IN
suspending/VBG
stock-index/JJ
arbitrage/NN
trading/NN
for/IN
their/PRP$
own/JJ
accounts/NNS
./.
Still/RB
,/,
stock-index/JJ
funds/NNS
are/VBP
expected/VBN
to/TO
continue/VB
launching/VBG
big/JJ
programs/NNS
through/IN
the/DT
market/NN
./.
Several/JJ
Big/NNP
Board/NNP
firms/NNS
are/VBP
organizing/VBG
to/TO
complain/VB
about/IN
program/NN
trading/NN
and/CC
the/DT
exchange/NN
's/POS
role/NN
in/IN
it/PRP
./.
The/DT
effort/NN
is/VBZ
being/VBG
led/VBN
by/IN
Contel/NNP
./.
Personal/JJ
spending/NN
rose/VBD
0.2/CD
%/NN
in/IN
September/NNP
,/,
the/DT
smallest/JJS
gain/NN
in/IN
a/DT
year/NN
./.
The/DT
slowdown/NN
raises/VBZ
questions/NNS
about/IN
the/DT
economy/NN
's/POS
strength/NN
because/IN
spending/NN
fueled/VBD
much/JJ
of/IN
the/DT
third-quarter/JJ
GNP/NNP
growth/NN
./.
Meanwhile/RB
,/,
personal/JJ
income/NN
edged/VBD
up/RB
0.3/CD
%/NN
./.
Factory/NN
owners/NNS
are/VBP
buying/VBG
new/JJ
machinery/NN
at/IN
a/DT
healthy/JJ
rate/NN
this/DT
fall/NN
,/,
machine-tool/JJ
makers/NNS
say/VBP
./.
But/CC
weak/JJ
car/NN
sales/NNS
raise/VBP
questions/NNS
about/IN
future/JJ
demand/NN
from/IN
the/DT
auto/NN
sector/NN
./.
Southern/NNP
's/POS
Gulf/NNP
Power/NNP
unit/NN
may/MD
plead/VB
guilty/JJ
this/DT
week/NN
to/TO
charges/NNS
it/PRP
illegally/RB
steered/VBD
company/NN
money/NN
to/TO
politicians/NNS
through/IN
third/JJ
parties/NNS
./.
The/DT
tentative/JJ
pact/NN
would/MD
resolve/VB
part/NN
of/IN
a/DT
broad/JJ
investigation/NN
of/IN
the/DT
Atlanta-based/JJ
company/NN
in/IN
the/DT
past/JJ
year/NN
./.
LIN/NNP
Broadcasting/NNP
and/CC
BellSouth/NNP
sweetened/VBD
their/PRP$
plan/NN
to/TO
merge/VB
cellular/JJ
phone/NN
operations/NNS
,/,
offering/VBG
LIN/NNP
holders/NNS
a/DT
special/JJ
$/$
42-a-share/JJ
payout/NN
./.
But/CC
the/DT
new/JJ
pact/NN
will/MD
force/VB
huge/JJ
debt/NN
on/IN
the/DT
new/JJ
firm/NN
and/CC
could/MD
still/RB
fail/VB
to/TO
thwart/VB
rival/JJ
suitor/NN
McCaw/NNP
Cellular/NNP
./.
Unisys/NNP
posted/VBD
a/DT
$/$
648.2/CD
million/CD
loss/NN
for/IN
the/DT
third/JJ
quarter/NN
as/IN
it/PRP
moved/VBD
quickly/RB
to/TO
take/VB
write-offs/NNS
for/IN
various/JJ
problems/NNS
and/CC
prepare/VB
for/IN
a/DT
turnaround/NN
./.
But/CC
some/DT
analysts/NNS
wonder/VBP
how/WRB
strong/JJ
the/DT
recovery/NN
will/MD
be/VB
./.
RJR/NNP
Nabisco/NNP
agreed/VBD
to/TO
sell/VB
three/CD
candy/NN
businesses/NNS
to/TO
Nestle/NNP
for/IN
$/$
370/CD
million/CD
./.
The/DT
accord/NN
helps/VBZ
RJR/NNP
pay/NN
off/RP
debt/NN
and/CC
boosts/VBZ
Nestle/NNP
's/POS
7/CD
%/NN
share/NN
of/IN
the/DT
U.S./NNP
candy/NN
market/NN
to/TO
12/CD
%/NN
./.
GM/NNP
and/CC
Ford/NNP
are/VBP
expected/VBN
to/TO
go/VB
head/NN
to/TO
head/NN
in/IN
the/DT
markets/NNS
to/TO
buy/VB
up/RP
rival/JJ
15/CD
%/NN
stakes/NNS
in/IN
Jaguar/NNP
./.
GM/NNP
confirmed/VBD
it/PRP
received/VBD
U.S./NNP
antitrust/JJ
clearance/NN
to/TO
boost/VB
its/PRP$
holding/NN
./.
Sansui/NNP
Electric/NNP
agreed/VBD
to/TO
sell/VB
a/DT
51/CD
%/NN
stake/NN
to/TO
Polly/NNP
Peck/NNP
of/IN
Britain/NNP
for/IN
$/$
110/CD
million/CD
./.
Still/RB
,/,
analysts/NNS
said/VBD
the/DT
accord/NN
does/VBZ
n't/RB
suggest/VB
Japan/NNP
is/VBZ
opening/VBG
up/RP
to/TO
more/JJR
foreign/JJ
takeovers/NNS
./.
Kellogg/NNP
suspended/VBD
work/NN
on/IN
a/DT
$/$
1/CD
billion/CD
cereal/NN
plant/NN
,/,
indicating/VBG
a/DT
pessimistic/JJ
outlook/NN
by/IN
the/DT
cereal/NN
maker/NN
,/,
which/WDT
has/VBZ
been/VBN
losing/VBG
market/NN
share/NN
./.
Insurers/NNS
could/MD
see/VB
claims/NNS
totaling/VBG
nearly/RB
$/$
1/CD
billion/CD
from/IN
the/DT
San/NNP
Francisco/NNP
earthquake/NN
,/,
far/RB
less/JJR
than/IN
the/DT
$/$
4/CD
billion/CD
from/IN
Hurricane/NNP
Hugo/NNP
./.
Nashua/NNP
strengthened/VBD
its/PRP$
poison-pill/JJ
plan/NN
after/IN
announcing/VBG
a/DT
Dutch/JJ
firm/NN
is/VBZ
seeking/VBG
to/TO
buy/VB
up/RP
to/TO
25/CD
%/NN
of/IN
the/DT
New/NNP
Hampshire/NNP
copier/NN
company/NN
./.
Mobil/NNP
is/VBZ
cutting/VBG
back/RP
its/PRP$
U.S./NNP
oil/NN
and/CC
gas/NN
exploration/NN
and/CC
production/NN
group/NN
by/IN
up/IN
to/TO
15/CD
%/NN
as/IN
part/NN
of/IN
a/DT
restructuring/NN
of/IN
the/DT
business/NN
./.
Markets/NNS
--/:
Stocks/NNS
:/:
Volume/NN
170,330,000/CD
shares/NNS
./.
Dow/NNP
Jones/NNP
industrials/NNS
2596.72/CD
,/,
off/IN
17.01/CD
;/:
transportation/NN
1190.43/CD
,/,
off/RB
14.76/CD
;/:
utilities/NNS
215.86/CD
,/,
up/RB
0.19/CD
./.
Bonds/NNS
:/:
Shearson/NNP
Lehman/NNP
Hutton/NNP
Treasury/NNP
index/NN
3406.31/CD
,/,
off/RB
Commodities/NNS
:/:
Dow/NNP
Jones/NNP
futures/NNS
index/NN
129.49/CD
,/,
up/RB
0.27/CD
;/:
spot/NN
index/NN
130.80/CD
,/,
off/RB
0.24/CD
./.
Dollar/NN
:/:
141.65/CD
yen/NNS
,/,
off/RB
0.45/CD
;/:
1.8300/CD
marks/NNS
,/,
off/RB
0.0100/CD
./.
its/PRP$
centennial/NN
year/NN
,/,
The/DT
Wall/NNP
Street/NNP
Journal/NNP
will/MD
report/VB
events/NNS
of/IN
the/DT
past/JJ
century/NN
that/WDT
stand/VBP
as/IN
milestones/NNS
of/IN
American/JJ
business/NN
history/NN
./.
Thomas/NNP
Jefferson/NNP
sold/VBD
Congress/NNP
on/IN
the/DT
idea/NN
of/IN
the/DT
decimal/JJ
system/NN
for/IN
currency/NN
,/,
thus/RB
saving/VBG
Americans/NNPS
the/DT
headaches/NNS
of/IN
pounds/NNS
,/,
shillings/NNS
and/CC
pence/NNS
./.
But/CC
he/PRP
struck/VBD
out/RP
with/IN
the/DT
decimal/JJ
system/NN
of/IN
metric/JJ
weights/NNS
and/CC
measures/VBZ
the/DT
French/NNP
had/VBD
invented/VBN
./.
Instead/RB
,/,
Congress/NNP
opted/VBD
for/IN
the/DT
inches/NNS
,/,
feet/NNS
and/CC
yards/NNS
the/DT
colonists/NNS
had/VBD
brought/VBN
with/IN
them/PRP
./.
Americans/NNPS
did/VBD
n't/RB
dislike/VB
metrics/NNS
;/:
they/PRP
simply/RB
ignored/VBD
them/PRP
./.
Scientists/NNS
felt/VBD
differently/RB
./.
In/IN
1807/CD
,/,
the/DT
Swiss/JJ
mathematician/NN
who/WP
headed/VBD
the/DT
U.S./NNP
Coast/NNP
and/CC
Geodetic/NNP
Survey/NNP
made/VBD
an/DT
``/``
iron/NN
meter/NN
''/''
that/WDT
he/PRP
had/VBD
brought/VBN
from/IN
Europe/NNP
the/DT
standard/NN
of/IN
measure/NN
./.
By/IN
the/DT
end/NN
of/IN
the/DT
century/NN
scientists/NNS
had/VBD
embraced/VBN
the/DT
system/NN
./.
Businessmen/NNS
took/VBD
their/PRP$
cue/NN
from/IN
the/DT
engineers/NNS
./.
When/WRB
Congress/NNP
finally/RB
passed/VBD
the/DT
Metric/NNP
Conversion/NNP
Act/NNP
in/IN
1975/CD
,/,
industry/NN
was/VBD
far/RB
ahead/RB
./.
Because/IN
the/DT
law/NN
made/VBD
compliance/NN
voluntary/JJ
,/,
it/PRP
inspired/VBD
little/JJ
more/JJR
than/IN
jokes/NNS
./.
The/DT
press/NN
had/VBD
a/DT
field/NN
day/NN
with/IN
questions/NNS
about/IN
what/WP
would/MD
happen/VB
to/TO
``/``
six-footer/NN
,/,
''/''
``/``
yardstick/NN
''/''
and/CC
``/``
inchworm/NN
./.
''/''
)/)
Today/NN
,/,
though/IN
the/DT
public/NN
is/VBZ
barely/RB
aware/JJ
,/,
much/JJ
of/IN
U.S./NNP
industry/NN
,/,
particularly/RB
companies/NNS
manufacturing/VBG
or/CC
selling/VBG
overseas/RB
,/,
have/VB
made/VBN
metrics/NNS
routine/JJ
./.
General/NNP
Motors/NNP
,/,
for/IN
example/NN
,/,
uses/VBZ
metric/JJ
terms/NNS
for/IN
its/PRP$
automobile/NN
bodies/NNS
and/CC
power/NN
trains/NNS
./.
auto/NN
advertising/NN
,/,
however/RB
,/,
items/NNS
such/JJ
as/IN
wheelbases/NNS
are/VBP
still/RB
described/VBN
in/IN
inches/NNS
./.
Farm-machine/NN
makers/NNS
such/JJ
as/IN
Caterpillar/NNP
and/CC
Deere/NNP
work/VBP
in/IN
the/DT
metric/JJ
system/NN
./.
The/DT
liquor/NN
industry/NN
went/VBD
metric/JJ
10/CD
years/NNS
ago/RB
./.
The/DT
Pentagon/NNP
has/VBZ
led/VBN
the/DT
charge/NN
,/,
particularly/RB
as/IN
military/JJ
alliances/NNS
spread/VBD
world-wide/RB
./.
New/JJ
weapons/NNS
systems/NNS
will/MD
be/VB
around/RB
until/IN
the/DT
next/JJ
century/NN
,/,
notes/VBZ
John/NNP
Tascher/NNP
,/,
the/DT
Defense/NNP
Department/NNP
's/POS
metric/JJ
coordinator/NN
./.
Still/RB
,/,
like/IN
the/DT
auto/NN
makers/NNS
,/,
when/WRB
dealing/VBG
with/IN
Mr./NNP
Everyman/NNP
the/DT
Pentagon/NNP
sticks/NNS
to/TO
the/DT
tried/JJ
and/CC
true/JJ
./.
Soldiers/NNS
and/CC
sailors/NNS
are/VBP
still/RB
measured/VBN
in/IN
inches/NNS
and/CC
pounds/NNS
./.
Whittle/NNP
Communications/NNP
L.P./NNP
,/,
which/WDT
for/IN
months/NNS
has/VBZ
fought/VBN
a/DT
public/JJ
relations/NNS
battle/NN
with/IN
education/NN
leaders/NNS
,/,
said/VBD
it/PRP
has/VBZ
signed/VBN
500/CD
schools/NNS
in/IN
24/CD
states/NNS
to/TO
subscribe/VB
to/TO
the/DT
controversial/JJ
Channel/NNP
One/CD
news/NN
program/NN
and/CC
its/PRP$
sister/JJ
programs/NNS
./.
Channel/NNP
One/CD
,/,
a/DT
satellite-delivered/JJ
daily/JJ
program/NN
supported/VBN
by/IN
advertising/NN
,/,
is/VBZ
scheduled/VBN
to/TO
be/VB
launched/VBN
next/IN
March/NNP
./.
Whittle/NN
said/VBD
its/PRP$
field/NN
staff/NN
signed/VBD
up/RP
the/DT
500/CD
schools/NNS
in/IN
238/CD
school/NN
districts/NNS
after/IN
only/RB
eight/CD
weeks/NNS
and/CC
company/NN
executives/NNS
now/RB
expect/VBP
to/TO
reach/VB
their/PRP$
start-up/JJ
goal/NN
of/IN
1,000/CD
schools/NNS
before/IN
the/DT
end/NN
of/IN
this/DT
year/NN
./.
Christopher/NNP
Whittle/NNP
,/,
chairman/NN
of/IN
the/DT
Knoxville/NNP
,/,
Tenn./NNP
,/,
media/NNS
company/NN
that/WDT
is/VBZ
50/CD
%/NN
owned/VBN
by/IN
Time/NN
Warner/NNP
Inc./NNP
,/,
said/VBD
that/IN
by/IN
December/NNP
1990/CD
he/PRP
expects/VBZ
to/TO
have/VB
Channel/NNP
One/CD
installed/VBN
in/IN
about/RB
8,000/CD
schools/NNS
with/IN
a/DT
potential/JJ
audience/NN
of/IN
six/CD
million/CD
./.
Installation/NN
of/IN
the/DT
TV/NN
system/NN
,/,
which/WDT
includes/VBZ
providing/VBG
free/JJ
19-inch/JJ
TV/NN
sets/NNS
in/IN
classrooms/NNS
,/,
begins/VBZ
in/IN
January/NNP
./.
``/``
What/WP
we/PRP
've/VBP
done/VBN
in/IN
eight/CD
weeks/NNS
shows/VBZ
we/PRP
wo/MD
n't/RB
have/VB
enormous/JJ
difficulties/NNS
getting/VBG
to/TO
the/DT
place/NN
we/PRP
want/VBP
to/TO
be/VB
,/,
''/''
said/VBD
Mr./NNP
Whittle/NNP
./.
He/PRP
said/VBD
his/PRP$
sales/NNS
force/NN
is/VBZ
signing/VBG
up/RP
schools/NNS
at/IN
the/DT
rate/NN
of/IN
25/CD
a/DT
day/NN
./.
In/IN
California/NNP
and/CC
New/NNP
York/NNP
,/,
state/NN
officials/NNS
have/VBP
opposed/VBN
Channel/NNP
One/CD
./.
Mr./NNP
Whittle/NNP
said/VBD
private/JJ
and/CC
parochial/JJ
schools/NNS
in/IN
both/DT
states/NNS
will/MD
be/VB
canvassed/VBN
to/TO
see/VB
if/IN
they/PRP
are/VBP
interested/JJ
in/IN
getting/VBG
the/DT
programs/NNS
./.
Subscribing/VBG
schools/NNS
get/VBP
the/DT
12-minute/JJ
daily/JJ
Channel/NNP
One/CD
news/NN
program/NN
,/,
whose/WP$
four/CD
30-second/JJ
TV/NN
ads/NNS
during/IN
each/DT
show/NN
have/VBP
drawn/VBN
protests/NNS
from/IN
educators/NNS
./.
Subscribers/NNS
also/RB
get/VBP
the/DT
Classroom/NNP
Channel/NNP
,/,
which/WDT
will/MD
feature/VB
ad-free/JJ
educational/JJ
programming/NN
similar/JJ
to/TO
some/DT
public-TV/NN
shows/NNS
,/,
and/CC
the/DT
Educator/NNP
's/POS
Channel/NNP
,/,
which/WDT
will/MD
offer/VB
instructional/JJ
programming/NN
for/IN
teachers/NNS
and/CC
school/NN
administrators/NNS
and/CC
will/MD
be/VB
supported/VBN
by/IN
advertising/NN
./.
Whittle/NNP
has/VBZ
met/VBN
some/DT
resistance/NN
./.
The/DT
Educational/NNP
Network/NNP
,/,
as/IN
Mr./NNP
Whittle/NNP
has/VBZ
named/VBN
the/DT
three/CD
programs/NNS
,/,
has/VBZ
been/VBN
offered/VBN
to/TO
1,290/CD
school/NN
districts/NNS
and/CC
Whittle/NNP
continues/VBZ
to/TO
negotiate/VB
with/IN
919/CD
districts/NNS
./.
About/RB
10/CD
%/NN
of/IN
the/DT
school/NN
districts/NNS
approached/VBN
have/VBP
rejected/VBN
the/DT
network/NN
./.
Mr./NNP
Whittle/NNP
said/VBD
that/IN
so/RB
far/RB
,/,
three/CD
of/IN
the/DT
six/CD
schools/NNS
that/WDT
carried/VBD
the/DT
program/NN
in/IN
a/DT
five-week/JJ
test/NN
last/JJ
spring/NN
have/VBP
subscribed/VBN
to/TO
the/DT
program/NN
./.
One/CD
of/IN
the/DT
test/NN
schools/NNS
,/,
Withrow/NNP
High/NNP
School/NNP
in/IN
Cincinnati/NNP
,/,
rejected/VBD
the/DT
project/NN
./.
John/NNP
Bruner/NNP
,/,
associate/JJ
director/NN
of/IN
communications/NNS
for/IN
Cincinnati/NNP
Public/NNP
Schools/NNP
,/,
said/VBD
Channel/NNP
One/NN
was/VBD
rejected/VBN
because/IN
students/NNS
watching/VBG
the/DT
program/NN
did/VBD
n't/RB
fare/NN
particularly/RB
better/RBR
on/IN
a/DT
28-question/JJ
current/JJ
events/NNS
quiz/NN
than/IN
a/DT
control/JJ
school/NN
without/IN
the/DT
program/NN
and/CC
school/NN
absences/NNS
were/VBD
almost/RB
unchanged/JJ
during/IN
the/DT
period/NN
when/WRB
the/DT
program/NN
was/VBD
being/VBG
aired/VBN
./.
``/``
The/DT
number/NN
of/IN
correct/JJ
responses/NNS
was/VBD
45/CD
%/NN
on/IN
the/DT
test/NN
and/CC
school/NN
absences/NNS
did/VBD
n't/RB
change/NN
much/RB
,/,
''/''
said/VBD
Mr./NNP
Bruner/NNP
./.
``/``
The/DT
pilot/JJ
program/NN
was/VBD
received/VBN
well/RB
(/(
by/IN
teachers/NNS
and/CC
students/NNS
was/VBD
n't/RB
reason/NN
enough/JJ
to/TO
sign/VB
up/RP
./.
We/PRP
even/RB
invited/VBD
the/DT
public/NN
to/TO
stop/VB
by/RP
and/CC
see/VB
the/DT
program/NN
,/,
but/CC
there/RB
was/VBD
n't/RB
much/JJ
interest/NN
./.
''/''
Advertisers/NNS
are/VBP
showing/VBG
interest/NN
./.
Last/JJ
month/NN
,/,
Whittle/NNP
announced/VBD
it/PRP
had/VBD
sold/VBN
$/$
150/CD
million/CD
in/IN
advertising/NN
time/NN
on/IN
the/DT
network/NN
to/TO
national/JJ
advertisers/NNS
./.
Mr./NNP
Whittle/NNP
Friday/NNP
said/VBD
several/JJ
more/JJR
advertisers/NNS
have/VBP
been/VBN
added/VBN
./.
Whittle/NNP
is/VBZ
spending/VBG
$/$
150/CD
million/CD
initially/RB
to/TO
launch/VB
the/DT
network/NN
./.
Installation/NN
of/IN
satellite/NN
dishes/NNS
,/,
TVs/NNS
and/CC
videocassette/NN
equipment/NN
will/MD
cost/VB
the/DT
company/NN
about/RB
$/$
20,000/CD
per/IN
school/NN
,/,
Mr./NNP
Whittle/NNP
said/VBD
./.
The/DT
following/JJ
U.S./NNP
Treasury/NNP
,/,
corporate/JJ
and/CC
municipal/JJ
offerings/NNS
are/VBP
tentatively/RB
scheduled/VBN
for/IN
sale/NN
this/DT
week/NN
,/,
according/VBG
to/TO
Dow/NNP
Jones/NNP
Capital/NNP
Markets/NNP
Report/NNP
:/:
$/$
15.6/CD
billion/CD
of/IN
three-month/JJ
and/CC
six-month/JJ
bills/NNS
./.
$/$
2/CD
billion/CD
of/IN
51-day/JJ
cash/NN
management/NN
bills/NNS
./.
Associated/NNP
Natural/NNP
Gas/NNP
Corp./NNP
--/:
1.4/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
Dillon/NNP
Read/NNP
&/CC
Co/NNP
./.
B/NNP
&/CC
H/NNP
Crude/NNP
Carriers/NNP
Ltd./NNP
--/:
Four/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
Salomon/NNP
Brothers/NNP
Inc/NNP
./.
Chemical/NNP
Banking/NNP
Corp./NNP
--/:
14/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
./.
Chemex/NNP
Pharmaceuticals/NNP
Inc./NNP
--/:
1.2/CD
million/CD
units/NNS
consisting/VBG
of/IN
two/CD
shares/NNS
of/IN
common/JJ
stock/NN
and/CC
one/CD
common/JJ
warrant/NN
,/,
via/IN
PaineWebber/NNP
Inc/NNP
./.
Comcast/NNP
Corp./NNP
--/:
$/$
150/CD
million/CD
convertible/JJ
debentures/NNS
,/,
via/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
./.
Energy/NNP
Service/NNP
Co./NNP
--/:
9.5/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
Alex/NNP
./.
Brown/NNP
&/CC
Sons/NNP
Inc/NNP
./.
Harmonia/NNP
Bancorp/NNP
Inc./NNP
--/:
4,750,000/CD
common/JJ
shares/NNS
,/,
via/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc/NNP
./.
Healthsource/NNP
Inc./NNP
--/:
Two/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
Kidder/NNP
,/,
Peabody/NNP
&/CC
Co/NNP
./.
Immune/NNP
Response/NNP
Corp./NNP
--/:
Three/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
Merrill/NNP
Lynch/NNP
./.
Marsam/NNP
Pharmaceuticals/NNP
Inc./NNP
--/:
1.3/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
Smith/NNP
Barney/NNP
Harris/NNP
Upham/NNP
&/CC
Co/NNP
./.
Potash/NNP
Corp./NNP
of/IN
Saskatchewan/NNP
Inc./NNP
--/:
13/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
Merrill/NNP
Lynch/NNP
./.
Municipal/JJ
New/NNP
Jersey/NNP
Wastewater/NNP
Treatment/NNP
Trust/NNP
--/:
$/$
75,075,000/CD
of/IN
various/JJ
bonds/NNS
,/,
including/VBG
$/$
40.86/CD
million/CD
Wastewater/NNP
Treatment/NNP
insured/JJ
bonds/NNS
,/,
Series/NNP
1989A/NNP
,/,
and/CC
$/$
34,215,000/CD
Wastewater/NNP
Treatment/NNP
bonds/NNS
,/,
Series/NNP
1989B/NNP
,/,
via/IN
competitive/JJ
bid/NN
./.
Eastern/NNP
Municipal/NNP
Water/NNP
District/NNP
,/,
Calif./NNP
--/:
$/$
56,565,000/CD
of/IN
1989/CD
certificates/NNS
of/IN
participation/NN
treatment/NN
plant/NN
projects/NNS
competitive/JJ
bid/NN
./.
California/NNP
Health/NNP
Facilities/NNP
Financing/NNP
Authority/NNP
--/:
$/$
114/CD
million/CD
of/IN
health/NN
facility/NN
revenue/NN
bonds/NNS
Catholic/NNP
Healthcare/NNP
West/NNP
Series/NNP
1989A/NNP
,/,
via/IN
a/DT
First/NNP
Boston/NNP
Corp./NNP
group/NN
./.
Detroit/NNP
--/:
$/$
130/CD
million/CD
of/IN
distributable/JJ
state/NN
aid/NN
bonds/NNS
,/,
via/IN
a/DT
Chemical/NNP
Securities/NNP
Inc./NNP
group/NN
./.
Maryland/NNP
Community/NNP
Development/NNP
Administration/NNP
,/,
Department/NNP
of/IN
Housing/NNP
and/CC
Community/NNP
Development/NNP
--/:
$/$
80/CD
million/CD
of/IN
single-family/JJ
program/NN
bonds/NNS
,/,
1989/CD
4th/JJ
and/CC
5th/JJ
Series/NN
,/,
via/IN
a/DT
Merrill/NNP
Lynch/NNP
group/NN
./.
Matagorda/NNP
County/NNP
Navigation/NNP
District/NNP
No./NN
1/CD
,/,
Texas/NNP
--/:
$/$
70,315,000/CD
of/IN
pollution/NN
control/NN
revenue/NN
Alternative/NNP
Minimum/NNP
Tax/NNP
AMT/NNP
bonds/NNS
South/NNP
Texas/NNP
Project/NNP
Units/NNP
No./VB
1/CD
and/CC
2/CD
a/DT
Goldman/NNP
Sachs/NNP
group/NN
./.
New/NNP
York/NNP
City/NNP
--/:
$/$
786,860,000/CD
of/IN
bonds/NNS
,/,
Fiscal/NN
1990/CD
Series/NNP
C/NNP
and/CC
D/NNP
,/,
including/VBG
$/$
729.04/CD
million/CD
tax-exempt/JJ
bonds/NNS
and/CC
$/$
57.82/CD
million/CD
taxable/JJ
bonds/NNS
,/,
via/IN
a/DT
Goldman/NNP
Sachs/NNP
group/NN
./.
Santa/NNP
Ana/NNP
Redevelopment/NNP
Agency/NNP
--/:
$/$
107/CD
million/CD
of/IN
tax/NN
allocation/NN
bonds/NNS
,/,
1989/CD
Series/NNP
A-D/NNP
,/,
via/IN
a/DT
Donaldson/NNP
Lufkin/NNP
&/CC
Jenrette/NNP
Securities/NNP
Corp./NNP
group/NN
./.
Pending/NNP
Shelby/NNP
County/NNP
,/,
Tenn./NNP
--/:
$/$
80/CD
million/CD
of/IN
refunding/VBG|NN
bonds/NNS
,/,
Series/NNP
1989/CD
,/,
via/IN
a/DT
First/NNP
Tennessee/NNP
Bank/NNP
group/NN
./.
Hewlett-Packard/NNP
Co./NNP
said/VBD
it/PRP
raised/VBD
its/PRP$
stake/NN
in/IN
Octel/NNP
Communications/NNP
Corp./NNP
to/TO
8.5/CD
%/NN
of/IN
the/DT
common/JJ
shares/NNS
outstanding/JJ
./.
In/IN
a/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
filing/NN
,/,
Hewlett-Packard/NNP
said/VBD
it/PRP
now/RB
holds/VBZ
1,384,119/CD
Octel/NN
common/JJ
shares/NNS
,/,
including/VBG
100,000/CD
shares/NNS
bought/VBN
from/IN
Aug./NNP
26/CD
to/TO
Oct./NNP
20/CD
for/IN
$/$
23.31/CD
to/TO
$/$
24.25/CD
a/DT
share/NN
./.
Hewlett-Packard/NNP
,/,
a/DT
Palo/NNP
Alto/NNP
,/,
Calif./NNP
,/,
computer/NN
company/NN
,/,
said/VBD
it/PRP
acquired/VBD
the/DT
stock/NN
``/``
to/TO
develop/VB
and/CC
maintain/VB
a/DT
strategic/JJ
partnership/NN
in/IN
which/WDT
each/DT
company/NN
remains/VBZ
independent/JJ
while/IN
working/VBG
together/RB
to/TO
market/VB
and/CC
sell/VB
their/PRP$
products/NNS
./.
''/''
Octel/NNP
said/VBD
the/DT
purchase/NN
was/VBD
expected/VBN
./.
Hewlett-Packard/NNP
affirmed/VBD
it/PRP
does/VBZ
n't/RB
plan/VB
to/TO
obtain/VB
control/NN
of/IN
Octel/NNP
,/,
a/DT
Milpitas/NNP
,/,
Calif./NNP
,/,
maker/NN
of/IN
voice-processing/JJ
systems/NNS
./.
According/VBG
to/TO
the/DT
filing/NN
,/,
Hewlett-Packard/NNP
acquired/VBD
730,070/CD
common/JJ
shares/NNS
from/IN
Octel/NNP
as/IN
a/DT
result/NN
of/IN
an/DT
Aug./NNP
10/CD
,/,
1988/CD
,/,
stock/NN
purchase/NN
agreement/NN
./.
That/DT
accord/NN
also/RB
called/VBD
for/IN
Hewlett-Packard/NNP
to/TO
buy/VB
730,070/CD
Octel/NNP
shares/NNS
in/IN
the/DT
open/JJ
market/NN
within/IN
18/CD
months/NNS
./.
In/IN
addition/NN
,/,
Hewlett-Packard/NNP
acquired/VBD
a/DT
two-year/JJ
option/NN
to/TO
buy/VB
an/DT
extra/JJ
10/CD
%/NN
,/,
of/IN
which/WDT
half/NN
may/MD
be/VB
sold/VBN
directly/RB
to/TO
Hewlett-Packard/NNP
by/IN
Octel/NNP
./.
Following/VBG
is/VBZ
a/DT
weekly/JJ
listing/NN
of/IN
unadited/JJ
net/JJ
asset/NN
values/NNS
of/IN
publicly/RB
traded/VBN
investment/NN
fund/NN
shares/NNS
,/,
reported/VBN
by/IN
the/DT
companies/NNS
as/IN
of/IN
Friday/NNP
's/POS
close/NN
./.
Also/RB
shown/VBN
is/VBZ
the/DT
closing/NN
listed/JJ
market/NN
price/NN
or/CC
a/DT
dealer-to-dealer/JJ
asked/JJ
price/NN
of/IN
each/DT
fund/NN
's/POS
shares/NNS
,/,
with/IN
the/DT
percentage/NN
of/IN
difference/NN
./.
Closed/JJ
End/NN
Bond/NN
Funds/NNS
Flexible/JJ
Portfolio/NN
Funds/NNS
Specialized/JJ
Equity/NN
and/CC
Convertible/JJ
Funds/NNS
a/SYM
-/:
Ex-dividend/NN
./.
b/SYM
-/:
As/IN
of/IN
Thursday/NNP
's/POS
close/NN
./.
c/SYM
-/:
Translated/VBN
at/IN
Commercial/NNP
Rand/NNP
exchange/NN
rate/NN
./.
e/SYM
-/:
In/IN

Canadian/JJ
dollars/NNS
./.
f/SYM
-/:
As/IN
of/IN
Wednesday/NNP
's/POS
close/NN
./.
z/SYM
-/:
Not/RB

available/JJ
./.
Wham/UH
!/.
Bam/UH
!/.
Twice/RB
in/IN
two/CD
weeks/NNS
the/DT
unraveling/NN
of/IN
the/DT
on-again/JJ
,/,
off-again/JJ
UAL/NNP
buy-out/NN
slammed/VBD
the/DT
stock/NN
market/NN
./.
Now/RB
,/,
stock/NN
prices/NNS
seem/VBP
to/TO
be/VB
in/IN
a/DT
general/JJ
retreat/NN
./.
Since/IN
peaking/VBG
at/IN
2791.41/CD
on/IN
Oct./NNP
9/CD
,/,
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
has/VBZ
lost/VBN
194.69/CD
points/NNS
,/,
or/CC
7/CD
%/NN
,/,
closing/VBG
Friday/NNP
at/IN
2596.72/CD
,/,
down/RB
17.01/CD
./.
The/DT
number/NN
of/IN
issues/NNS
falling/VBG
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
each/DT
day/NN
is/VBZ
eclipsing/VBG
the/DT
number/NN
of/IN
gainers/NNS
./.
And/CC
the/DT
number/NN
of/IN
stocks/NNS
hitting/VBG
new/JJ
lows/NNS
far/RB
outstrips/VBZ
the/DT
number/NN
setting/VBG
new/JJ
highs/NNS
./.
But/CC
why/WRB
should/MD
an/DT
iffy/JJ
$/$
6.79/CD
billion/CD
leveraged/JJ
buy-out/NN
deal/NN
shake/VB
the/DT
foundations/NNS
of/IN
the/DT
entire/JJ
stock/NN
market/NN
?/.
Opinions/NNS
vary/VBP
about/IN
how/WRB
important/JJ
the/DT
UAL/NNP
deal/NN
was/VBD
to/TO
the/DT
market/NN
's/POS
health/NN
,/,
but/CC
analysts/NNS
generally/RB
agree/VBP
that/IN
the/DT
market/NN
gyrations/NNS
created/VBN
as/IN
the/DT
UAL/NNP
plan/NN
crumbled/VBD
revealed/VBD
a/DT
fundamental/JJ
change/NN
in/IN
investor/NN
psychology/NN
./.
``/``
If/IN
this/DT
had/VBD
happened/VBN
a/DT
few/JJ
months/NNS
ago/RB
when/WRB
the/DT
atmosphere/NN
was/VBD
still/RB
very/RB
positive/JJ
it/PRP
would/MD
n't/RB
have/VB
been/VBN
greeted/VBN
with/IN
anything/NN
like/IN
the/DT
impact/NN
it/PRP
has/VBZ
had/VBN
over/IN
the/DT
past/JJ
two/CD
weeks/NNS
,/,
''/''
says/VBZ
Dennis/NNP
Jarrett/NNP
,/,
a/DT
market/NN
strategist/NN
at/IN
Kidder/NNP
Peabody/NNP
./.
There/EX
are/VBP
,/,
of/IN
course/NN
,/,
analysts/NNS
who/WP
view/VBP
the/DT
near-panic/NN
that/WDT
briefly/NN
swept/VBD
through/IN
investors/NNS
on/IN
Oct./NNP
13/CD
and/CC
again/RB
on/IN
Oct./NNP
24/CD
as/IN
momentary/JJ
lapses/NNS
of/IN
good/JJ
judgment/NN
that/WDT
have/VBP
only/RB
temporarily/RB
undermined/VBN
a/DT
healthy/JJ
stock/NN
market/NN
./.
Sure/RB
,/,
price/NN
action/NN
is/VBZ
volatile/JJ
and/CC
that/DT
's/VBZ
scary/JJ
,/,
but/CC
all-in-all/RB
stocks/NNS
are/VBP
still/RB
a/DT
good/JJ
place/NN
to/TO
be/VB
,/,
they/PRP
suggest/VBP
./.
The/DT
reaction/NN
to/TO
the/DT
UAL/NNP
debacle/NN
``/``
is/VBZ
mindless/JJ
,/,
''/''
says/VBZ
John/NNP
Connolly/NNP
,/,
chief/JJ
market/NN
strategist/NN
at/IN
Dean/NNP
Witter/NNP
./.
``/``
UAL/NNP
is/VBZ
a/DT
small/JJ
deal/NN
as/RB
far/RB
as/IN
the/DT
overall/JJ
market/NN
is/VBZ
concerned/VBN
./.
The/DT
only/JJ
way/NN
you/PRP
can/MD
make/VB
it/PRP
a/DT
big/JJ
deal/NN
is/VBZ
to/TO
draw/VB
linkages/NNS
that/WDT
just/RB
do/VBP
n't/RB
make/VB
sense/NN
./.
''/''
He/PRP
suggests/VBZ
,/,
for/IN
example/NN
,/,
that/IN
investors/NNS
may/MD
have/VB
assumed/VBN
that/RB
just/RB
because/IN
UAL/NNP
could/MD
n't/RB
get/VB
financing/NN
,/,
no/DT
leveraged/JJ
buy-outs/NNS
can/MD
get/VB
financing/NN
./.
Carried/VBN
even/RB
further/RBR
,/,
some/DT
investors/NNS
assumed/VBD
that/IN
since/IN
leveraged/JJ
buy-outs/NNS
are/VBP
the/DT
only/JJ
thing/NN
propping/VBG
up/RP
stock/NN
prices/NNS
,/,
the/DT
market/NN
would/MD
collapse/VB
if/IN
no/DT
more/JJR
LBOs/NNS
could/MD
be/VB
done/VBN
./.
``/``
There/EX
will/MD
still/RB
be/VB
deals/NNS
,/,
''/''
argues/VBZ
Mr./NNP
Connolly/NNP
./.
``/``
There/EX
may/MD
not/RB
be/VB
as/RB
many/JJ
and/CC
the/DT
buyers/NNS
may/MD
not/RB
get/VB
away/RP
with/IN
some/DT
of/IN
the/DT
things/NNS
they/PRP
've/VBP
done/VBN
in/IN
the/DT
past/NN
,/,
but/CC
deals/NNS
wo/MD
n't/RB
disappear/VB
./.
''/''
He/PRP
forecasts/VBZ
that/IN
the/DT
emphasis/NN
in/IN
mergers/NNS
and/CC
acquisitions/NNS
may/MD
soon/RB
return/VB
to/TO
what/WP
he/PRP
calls/VBZ
``/``
strategic/JJ
deals/NNS
,/,
in/IN
which/WDT
somebody/NN
is/VBZ
taking/VBG
over/IN
a/DT
company/NN
not/RB
to/TO
milk/VB
the/DT
cash/NN
flow/NN
,/,
but/CC
because/IN
it/PRP
's/VBZ
a/DT
good/JJ
fit/NN
./.
''/''
And/CC
even/RB
without/IN
deals/NNS
,/,
Mr./NNP
Connolly/NNP
figures/VBZ
the/DT
market/NN
would/MD
remain/VB
healthy/JJ
./.
He/PRP
notes/VBZ
,/,
for/IN
instance/NN
,/,
that/WDT
there/RB
has/VBZ
n't/RB
been/VBN
a/DT
merger/NN
or/CC
acquisition/NN
among/IN
the/DT
30/CD
stocks/NNS
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
since/IN
1986/CD
,/,
yet/CC
that/DT
average/NN
only/RB
three/CD
weeks/NNS
ago/RB
hit/VBD
a/DT
record/JJ
high/NN
./.
``/``
Those/DT
stocks/NNS
are/VBP
up/RB
because/IN
their/PRP$
earnings/NNS
are/VBP
up/RB
and/CC
their/PRP$
dividends/NNS
are/VBP
up/RB
,/,
''/''
he/PRP
says/VBZ
./.
Even/RB
the/DT
volatility/NN
created/VBN
by/IN
stock/NN
index/NN
arbitrage/NN
and/CC
other/JJ
computer-driven/JJ
trading/NN
strategies/NNS
is/VBZ
n't/RB
entirely/RB
bad/JJ
,/,
in/IN
Mr./NNP
Connolly/NNP
's/POS
view/NN
./.
For/IN
the/DT
long-term/JJ
investor/NN
who/WP
picks/VBZ
stocks/NNS
carefully/RB
,/,
the/DT
price/NN
volatility/NN
can/MD
provide/VB
welcome/JJ
buying/NN
opportunities/NNS
as/IN
short-term/JJ
players/NNS
scramble/VBP
frantically/RB
to/TO
sell/VB
stocks/NNS
in/IN
a/DT
matter/NN
of/IN
minutes/NNS
./.
``/``
Who/WP
can/MD
make/VB
the/DT
better/JJR
decision/NN
,/,
the/DT
guy/NN
who/WP
has/VBZ
10/CD
seconds/NNS
to/TO
decide/VB
what/WP
to/TO
do/VB
or/CC
the/DT
guy/NN
with/IN
all/PDT
the/DT
time/NN
in/IN
the/DT
world/NN
?/.
''/''
he/PRP
says/VBZ
./.
``/``
What/WP
on/IN
earth/NN
does/VBZ
the/DT
UAL/NNP
deal/NN
have/VB
to/TO
do/VB
with/IN
the/DT
price/NN
of/IN
Walmart/NNP
,/,
which/WDT
I/PRP
was/VBD
able/JJ
to/TO
buy/VB
on/IN
Oct./NNP
16/CD
at/IN
a/DT
very/RB
attractive/JJ
price/NN
?/.
''/''
Kidder/NNP
Peabody/NNP
's/POS
Mr./NNP
Jarrett/NNP
also/RB
sees/VBZ
some/DT
benefits/NNS
to/TO
the/DT
stock/NN
market/NN
's/POS
recent/JJ
drop/NN
./.
``/``
We/PRP
've/VBP
run/VBN
into/IN
a/DT
market/NN
that/WDT
was/VBD
beginning/VBG
to/TO
run/VB
out/RP
of/IN
steam/NN
and/CC
get/VB
frothy/JJ
,/,
''/''
he/PRP
says/VBZ
./.
``/``
The/DT
balloon/NN
had/VBD
been/VBN
blown/VBN
up/RP
so/RB
big/JJ
that/IN
when/WRB
somebody/NN
came/VBD
along/RB
with/IN
a/DT
pin/NN
--/:
in/IN
this/DT
case/NN
the/DT
UAL/NNP
deal/NN
--/:
we/PRP
got/VBD
a/DT
little/JJ
pop/NN
./.
''/''
The/DT
pop/NN
sobered/VBD
up/RP
investors/NNS
who/WP
had/VBD
been/VBN
getting/VBG
a/DT
little/JJ
too/RB
ebullient/JJ
,/,
says/VBZ
Mr./NNP
Jarrett/NNP
./.
``/``
It/PRP
provided/VBD
an/DT
excuse/NN
for/IN
people/NNS
to/TO
get/VB
back/RB
to/TO
reality/NN
and/CC
to/TO
look/VB
at/IN
the/DT
economic/JJ
data/NN
,/,
especially/RB
the/DT
third-quarter/JJ
economic/JJ
numbers/NNS
,/,
and/CC
to/TO
realize/VB
that/IN
we/PRP
ca/MD
n't/RB
continue/VB
to/TO
gloss/VB
over/RP
what/WP
is/VBZ
going/VBG
on/RP
in/IN
the/DT
junk/NN
bond/NN
market/NN
./.
''/''
But/CC
he/PRP
figures/VBZ
that/IN
at/IN
current/JJ
levels/NNS
the/DT
stock/NN
market/NN
is/VBZ
comfortably/RB
valued/VBN
,/,
even/RB
with/IN
the/DT
economy/NN
obviously/RB
slowing/VBG
./.
``/``
Just/RB
because/IN
we/PRP
've/VBP
got/VBN
some/DT
realism/NN
back/RB
in/IN
the/DT
market/NN
does/VBZ
n't/RB
mean/VB
it/PRP
's/VBZ
going/VBG
lower/RBR
from/IN
here/RB
,/,
''/''
he/PRP
says/VBZ
./.
``/``
The/DT
bottom/JJ
line/NN
is/VBZ
that/IN
it/PRP
's/VBZ
healthy/JJ
to/TO
have/VB
this/DT
kind/NN
of/IN
sideways/JJ
activity/NN
,/,
especially/RB
after/IN
a/DT
30/CD
%/NN
gain/NN
in/IN
stock/NN
values/NNS
over/IN
the/DT
past/JJ
12/CD
months/NNS
./.
''/''
He/PRP
's/VBZ
now/RB
estimating/VBG
that/IN
after/IN
a/DT
period/NN
of/IN
consolidation/NN
,/,
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
will/MD
once/RB
again/RB
forge/VB
new/JJ
highs/NNS
./.
Maybe/RB
,/,
maybe/RB
not/RB
./.
Abby/NNP
Joseph/NNP
Cohen/NNP
,/,
a/DT
market/NN
strategist/NN
at/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
,/,
is/VBZ
n't/RB
nearly/RB
so/RB
sanguine/JJ
about/IN
the/DT
market/NN
's/POS
chances/NNS
of/IN
surging/VBG
to/TO
new/JJ
highs/NNS
anytime/RB
soon/RB
./.
Her/PRP$
view/NN
is/VBZ
that/IN
stock/NN
prices/NNS
have/VBP
three/CD
major/JJ
props/NNS
:/:
merger/NN
and/CC
buy-out/NN
proposals/NNS
,/,
earnings/NNS
and/CC
the/DT
economic/JJ
outlook/NN
./.
At/IN
current/JJ
levels/NNS
of/IN
economic/JJ
activity/NN
and/CC
earnings/NNS
,/,
stocks/NNS
are/VBP
fairly/RB
valued/VBN
,/,
she/PRP
says/VBZ
./.
But/CC
any/DT
chance/NN
for/IN
prices/NNS
to/TO
surge/VB
above/IN
fair/JJ
value/NN
lies/VBZ
in/IN
the/DT
speculation/NN
that/WDT
accompanies/VBZ
a/DT
vigorous/JJ
merger/NN
and/CC
buy-out/NN
business/NN
,/,
and/CC
UAL/NNP
has/VBZ
obviously/RB
put/VBN
a/DT
damper/NN
on/IN
that/DT
./.
``/``
Stocks/NNS
are/VBP
n't/RB
cheap/RB
anymore/RB
,/,
there/EX
have/VBP
been/VBN
some/DT
judicial/JJ
and/CC
legislative/JJ
changes/NNS
in/IN
the/DT
merger/NN
area/NN
and/CC
all/DT
of/IN
this/DT
changes/VBZ
the/DT
arithmetic/NN
of/IN
deals/NNS
,/,
''/''
she/PRP
says/VBZ
./.
``/``
I/PRP
'm/VBP
not/RB
saying/VBG
they/PRP
've/VBP
stopped/VBD
altogether/RB
,/,
but/CC
future/JJ
deals/NNS
are/VBP
going/VBG
to/TO
be/VB
structured/VBN
differently/RB
and/CC
bids/VBZ
probably/RB
wo/MD
n't/RB
be/VB
as/RB
high/JJ
./.
''/''
But/CC
that/DT
's/VBZ
not/RB
the/DT
only/JJ
problem/NN
for/IN
stocks/NNS
./.
The/DT
other/JJ
two/CD
props/NNS
--/:
earnings/NNS
and/CC
the/DT
economic/JJ
outlook/NN
--/:
are/VBP
troubling/JJ
,/,
too/RB
./.
``/``
M&A/NN
is/VBZ
getting/VBG
all/PDT
the/DT
headlines/NNS
right/RB
now/RB
,/,
but/CC
these/DT
other/JJ
things/NNS
have/VBP
been/VBN
building/VBG
up/RP
more/RBR
gradually/RB
,/,
''/''
she/PRP
says/VBZ
./.
Third-quarter/JJ
earnings/NNS
have/VBP
been/VBN
generally/RB
disappointing/JJ
and/CC
with/IN
economic/JJ
data/NNS
showing/VBG
a/DT
clear/JJ
slowing/NN
,/,
the/DT
outlook/NN
for/IN
earnings/NNS
in/IN
the/DT
fourth/JJ
quarter/NN
and/CC
all/DT
of/IN
1990/CD
is/VBZ
getting/VBG
worse/JJR
./.
``/``
There/EX
are/VBP
a/DT
lot/NN
more/RBR
downward/JJ
than/IN
upward/JJ
revisions/NNS
and/CC
it/PRP
looks/VBZ
like/IN
people/NNS
are/VBP
questioning/VBG
corporate/JJ
profits/NNS
as/IN
a/DT
means/NN
of/IN
support/NN
for/IN
stock/NN
prices/NNS
,/,
''/''
she/PRP
says/VBZ
./.
With/IN
all/PDT
this/DT
,/,
can/MD
stock/VB
prices/NNS
hold/VB
their/PRP$
own/JJ
?/.
``/``
The/DT
question/NN
is/VBZ
unanswerable/JJ
at/IN
this/DT
point/NN
,/,
''/''
she/PRP
says/VBZ
./.
``/``
It/PRP
depends/VBZ
on/IN
what/WP
happens/VBZ
./.
If/IN
the/DT
economy/NN
slips/VBZ
into/IN
a/DT
recession/NN
,/,
then/RB
this/DT
is/VBZ
n't/RB
a/DT
level/NN
that/WDT
's/VBZ
going/VBG
to/TO
hold/VB
./.
''/''
Friday/NNP
's/POS
Market/NN
Activity/NN
Stock/NN
prices/NNS
tumbled/VBD
for/IN
a/DT
third/JJ
consecutive/JJ
day/NN
as/IN
earnings/NNS
disappointments/NNS
,/,
a/DT
sluggish/JJ
economy/NN
and/CC
a/DT
fragile/JJ
junk/NN
bond/NN
market/NN
continued/VBD
to/TO
weigh/VB
on/IN
investors/NNS
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
fell/VBD
17.01/CD
points/NNS
to/TO
2596.72/CD
in/IN
active/JJ
trading/NN
./.
Volume/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
totaled/VBD
170,330,000/CD
shares/NNS
./.
Declining/VBG
issues/NNS
on/IN
the/DT
Big/NNP
Board/NNP
were/VBD
far/RB
ahead/RB
of/IN
gainers/NNS
,/,
1,108/CD
to/TO
416/CD
./.
For/IN
the/DT
week/NN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
sank/VBD
92.42/CD
points/NNS
,/,
or/CC
3.4/CD
%/NN
./.
Oil/NN
stocks/NNS
escaped/VBD
the/DT
brunt/NN
of/IN
Friday/NNP
's/POS
selling/NN
and/CC
several/JJ
were/VBD
able/JJ
to/TO
post/VB
gains/NNS
,/,
including/VBG
Chevron/NNP
,/,
which/WDT
rose/VBD
5\/8/CD
to/TO
66/CD
3\/8/CD
in/IN
Big/NNP
Board/NNP
composite/NN
trading/NN
of/IN
2.4/CD
million/CD
shares/NNS
./.
The/DT
stock/NN
's/POS
advance/NN
reflected/VBD
ongoing/JJ
speculation/NN
that/IN
Pennzoil/NNP
is/VBZ
accumulating/VBG
a/DT
stake/NN
in/IN
the/DT
company/NN
,/,
according/VBG
to/TO
Dow/NNP
Jones/NNP
Professional/NNP
Investor/NNP
Report/NNP
./.
Both/DT
companies/NNS
declined/VBD
to/TO
comment/VB
on/IN
the/DT
rumors/NNS
,/,
but/CC
several/JJ
industry/NN
analysts/NNS
told/VBD
the/DT
Professional/NNP
Investor/NNP
Report/NNP
they/PRP
believed/VBD
it/PRP
was/VBD
plausible/JJ
that/IN
Pennzoil/NNP
may/MD
be/VB
buying/VBG
Chevron/NNP
shares/NNS
as/IN
a/DT
prelude/NN
to/TO
pushing/VBG
for/IN
a/DT
restructuring/NN
of/IN
the/DT
company/NN
./.
USX/NNP
gained/VBD
1\/2/CD
to/TO
33/CD
3\/8/CD
on/IN
a/DT
report/NN
in/IN
Business/NNP
Week/NNP
magazine/NN
that/IN
investor/NN
Carl/NNP
Icahn/NNP
is/VBZ
said/VBD
to/TO
have/VB
raised/VBN
his/PRP$
stake/NN
in/IN
the/DT
oil/NN
and/CC
steel/NN
company/NN
to/TO
just/RB
about/RB
15/CD
%/NN
./.
Earlier/RB
this/DT
month/NN
,/,
Mr./NNP
Icahn/NNP
boosted/VBD
his/PRP$
USX/NNP
stake/NN
to/TO
13.4/CD
%/NN
./.
Elsewhere/RB
in/IN
the/DT
oil/NN
sector/NN
,/,
Exxon/NNP
rallied/VBD
7\/8/CD
to/TO
45/CD
3\/4/CD
;/:
Amoco/NNP
rose/VBD
1\/8/CD
to/TO
47/CD
;/:
Texaco/NNP
was/VBD
unchanged/JJ
at/IN
51/CD
3\/4/CD
,/,
and/CC
Atlantic/NNP
Richfield/NNP
fell/VBD
1/CD
5\/8/CD
to/TO
99/CD
1\/2/CD
./.
Mobil/NNP
,/,
which/WDT
said/VBD
it/PRP
plans/VBZ
to/TO
cut/VB
its/PRP$
exploration/NN
and/CC
production/NN
work/NN
force/NN
by/IN
about/RB
8/CD
%/NN
in/IN
a/DT
restructuring/NN
,/,
dropped/VBD
5\/8/CD
to/TO
56/CD
1\/8/CD
./.
The/DT
precious/JJ
metals/NNS
sector/NN
outgained/VBD
other/JJ
Dow/NNP
Jones/NNP
industry/NN
groups/NNS
by/IN
a/DT
wide/JJ
margin/NN
for/IN
the/DT
second/JJ
consecutive/JJ
session/NN
./.
Hecla/NNP
Mining/NNP
rose/VBD
5\/8/CD
to/TO
14/CD
;/:
Battle/NNP
Mountain/NNP
Gold/NNP
climbed/VBD
3\/4/CD
to/TO
16/CD
3\/4/CD
;/:
Homestake/NNP
Mining/NNP
rose/VBD
1/CD
1\/8/CD
to/TO
16/CD
7\/8/CD
;/:
Lac/NNP
Minerals/NNP
added/VBD
5\/8/CD
to/TO
11/CD
;/:
Placer/NNP
Dome/NNP
went/VBD
up/RB
7\/8/CD
to/TO
16/CD
3\/4/CD
,/,
and/CC
ASA/NNP
Ltd./NNP
jumped/VBD
3/CD
5\/8/CD
to/TO
49/CD
5\/8/CD
./.
Gold/NNP
mining/NN
stocks/NNS
traded/VBN
on/IN
the/DT
American/NNP
Stock/NNP
Exchange/NNP
also/RB
showed/VBD
strength/NN
./.
Echo/NNP
Bay/NNP
Mines/NNP
rose/VBD
5\/8/CD
to/TO
15/CD
7\/8/CD
;/:
Pegasus/NNP
Gold/NNP
advanced/VBD
1/CD
1\/2/CD
to/TO
12/CD
,/,
and/CC
Corona/NNP
Class/NNP
A/NNP
gained/VBD
1\/2/CD
to/TO
7/CD
1\/2/CD
./.
Unisys/NNP
dropped/VBD
3\/4/CD
to/TO
16/CD
1\/4/CD
after/IN
posting/VBG
a/DT
third-quarter/JJ
loss/NN
of/IN
$/$
4.25/CD
a/DT
share/NN
,/,
including/VBG
restructuring/NN
charges/NNS
,/,
but/CC
other/JJ
important/JJ
technology/NN
issues/NNS
were/VBD
mixed/JJ
./.
Compaq/NNP
Computer/NNP
,/,
which/WDT
had/VBD
lost/VBN
8/CD
5\/8/CD
Thursday/NNP
following/VBG
a/DT
disappointing/JJ
quarterly/JJ
report/NN
,/,
gained/VBD
5\/8/CD
to/TO
100/CD
5\/8/CD
./.
International/NNP
Business/NNP
Machines/NNP
dropped/VBD
7\/8/CD
to/TO
99/CD
7\/8/CD
./.
Digital/NNP
Equipment/NNP
tacked/VBD
on/RP
1/CD
1\/8/CD
to/TO
89/CD
1\/8/CD
,/,
and/CC
Hewlett-Packard/NNP
fell/VBD
3\/8/CD
to/TO
49/CD
3\/8/CD
./.
Dividend-related/JJ
trading/NN
swelled/VBD
volume/NN
in/IN
Merrill/NNP
Lynch/NNP
,/,
which/WDT
closed/VBD
unchanged/JJ
at/IN
28/CD
3\/8/CD
as/IN
2.7/CD
million/CD
shares/NNS
changed/VBD
hands/NNS
./.
The/DT
stock/NN
has/VBZ
a/DT
3.5/CD
%/NN
dividend/NN
yield/NN
and/CC
goes/VBZ
ex-dividend/JJ
today/NN
./.
Erbamont/NNP
advanced/VBD
1/CD
1\/8/CD
to/TO
36/CD
1\/2/CD
on/IN
1.9/CD
million/CD
shares/NNS
./.
Montedison/NNP
,/,
which/WDT
owns/VBZ
about/RB
72/CD
%/NN
of/IN
the/DT
company/NN
's/POS
common/JJ
stock/NN
,/,
agreed/VBD
to/TO
buy/VB
the/DT
rest/NN
for/IN
$/$
37/CD
a/DT
share/NN
./.
Himont/NNP
,/,
another/DT
majority-owned/JJ
unit/NN
of/IN
Montedison/NNP
,/,
added/VBD
1/CD
1\/4/CD
to/TO
47/CD
1\/8/CD
./.
Milton/NNP
Roy/NNP
jumped/VBD
2/CD
to/TO
18/CD
3\/8/CD
./.
Crane/NNP
said/VBD
it/PRP
holds/VBZ
an/DT
8.9/CD
%/NN
stake/NN
in/IN
the/DT
company/NN
and/CC
may/MD
seek/VB
control/NN
./.
Crane/NNP
dropped/VBD
1/CD
1\/8/CD
to/TO
21/CD
1\/8/CD
./.
Comprehensive/NNP
Care/NNP
,/,
which/WDT
terminated/VBD
its/PRP$
agreement/NN
to/TO
merge/VB
with/IN
First/NNP
Hospital/NNP
,/,
dropped/VBD
7\/8/CD
to/TO
3/CD
7\/8/CD
./.
The/DT
company/NN
's/POS
decision/NN
was/VBD
made/VBN
after/IN
First/NNP
Hospital/NNP
failed/VBD
to/TO
obtain/VB
financing/NN
for/IN
its/PRP$
offer/NN
./.
Federal/JJ
investigators/NNS
have/VBP
identified/VBN
the/DT
problem/NN
in/IN
last/JJ
July/NNP
's/POS
crash/NN
of/IN
a/DT
United/NNP
Airlines/NNP
flight/NN
in/IN
Iowa/NNP
:/:
a/DT
structural/JJ
flaw/NN
that/WDT
developed/VBD
during/IN
the/DT
making/NN
of/IN
a/DT
titanium/NN
engine/NN
disk/NN
./.
For/IN
several/JJ
months/NNS
,/,
officials/NNS
at/IN
the/DT
Federal/NNP
Aviation/NNP
Administration/NNP
and/CC
the/DT
National/NNP
Transportation/NNP
Safety/NNP
Board/NNP
have/VBP
suspected/VBN
that/IN
a/DT
metallurgical/JJ
flaw/NN
in/IN
the/DT
disk/NN
led/VBD
to/TO
a/DT
crack/NN
that/WDT
ultimately/RB
caused/VBD
the/DT
tail/NN
engine/NN
to/TO
break/VB
apart/RB
in/IN
flight/NN
./.
The/DT
explosion/NN
sent/VBD
shards/NNS
of/IN
metal/NN
flying/VBG
,/,
severing/VBG
the/DT
DC-10/NNP
's/VBZ
hydraulic/JJ
or/CC
control/NN
systems/NNS
,/,
and/CC
led/VBD
to/TO
the/DT
crash/NN
that/WDT
killed/VBD
112/CD
people/NNS
./.
But/CC
investigators/NNS
could/MD
confirm/VB
their/PRP$
theory/NN
only/RB
after/IN
the/DT
recent/JJ
retrieval/NN
of/IN
a/DT
big/JJ
chunk/NN
of/IN
Flight/NNP
232/CD
's/POS
tail/NN
engine/NN
from/IN
a/DT
cornfield/NN
near/IN
the/DT
Sioux/NNP
City/NNP
Airport/NNP
in/IN
Iowa/NNP
./.
The/DT
safety/NN
board/NN
will/MD
begin/VB
four/CD
days/NNS
of/IN
hearings/NNS
on/IN
the/DT
accident/NN
tomorrow/NN
in/IN
Sioux/NNP
City/NNP
./.
Among/IN
the/DT
issues/NNS
the/DT
board/NN
will/MD
examine/VB
is/VBZ
whether/IN
United/NNP
Airlines/NNP
,/,
a/DT
unit/NN
of/IN
UAL/NNP
Corp./NNP
,/,
should/MD
have/VB
been/VBN
able/JJ
to/TO
detect/VB
the/DT
cracks/NNS
through/IN
maintenance/NN
checks/NNS
./.
The/DT
engine/NN
involved/VBN
was/VBD
a/DT
CF6-6/NNP
made/VBN
by/IN
General/NNP
Electric/NNP
Co/NNP
./.
Anthony/NNP
Broderick/NNP
,/,
the/DT
FAA/NNP
's/POS
acting/JJ
executive/NN
director/NN
for/IN
regulatory/JJ
standards/NNS
and/CC
compliance/NN
,/,
said/VBD
that/IN
recent/JJ
tests/NNS
of/IN
the/DT
failed/JJ
engine/NN
disk/NN
indicate/VBP
that/IN
a/DT
flaw/NN
--/:
known/VBN
as/IN
``/``
hard/JJ
alpha/NN
''/''
--/:
occurred/VBD
in/IN
the/DT
titanium/NN
during/IN
its/PRP$
production/NN
almost/RB
20/CD
years/NNS
ago/RB
./.
He/PRP
said/VBD
there/EX
was/VBD
n't/RB
any/DT
way/NN
to/TO
detect/VB
the/DT
flaw/NN
at/IN
that/DT
time/NN
,/,
and/CC
that/IN
the/DT
process/NN
has/VBZ
since/IN
been/VBN
changed/VBN
to/TO
decrease/VB
the/DT
chance/NN
that/IN
such/JJ
flaws/NNS
would/MD
occur/VB
./.
The/DT
FAA/NNP
already/RB
has/VBZ
ordered/VBN
that/IN
all/DT
232/CD
disks/NNS
made/VBN
by/IN
the/DT
old/JJ
process/NN
be/VB
removed/VBN
from/IN
the/DT
planes/NNS
and/CC
subjected/VBN
to/TO
an/DT
ultrasonic/JJ
test/NN
in/IN
a/DT
water-submersion/JJ
chamber/NN
./.
Such/JJ
tests/NNS
make/VBP
the/DT
FAA/NNP
confident/JJ
that/IN
a/DT
Sioux/NNP
City-type/JJ
accident/NN
``/``
wo/MD
n't/RB
happen/VB
again/RB
,/,
''/''
said/VBD
Mr./NNP
Broderick/NNP
./.
A/DT
spokesman/NN
for/IN
GE/NNP
said/VBD
that/IN
the/DT
company/NN
has/VBZ
been/VBN
working/VBG
with/IN
the/DT
FAA/NNP
all/RB
along/RB
on/IN
this/DT
issue/NN
and/CC
``/``
will/MD
comply/VB
fully/RB
with/IN
the/DT
required/JJ
inspections/NNS
./.
''/''
But/CC
he/PRP
also/RB
pointed/VBD
out/RP
that/IN
the/DT
recalls/NNS
will/MD
have/VB
no/DT
impact/NN
on/IN
GE/NNP
's/POS
engine/NN
production/NN
./.
The/DT
CF6-6/NNP
series/NN
engines/NNS
are/VBP
n't/RB
being/VBG
manufactured/VBN
any/DT
more/RBR
;/:
they/PRP
are/VBP
only/RB
being/VBG
used/VBN
in/IN
the/DT
DC-10/NNP
Series/NNP
10/CD
planes/NNS
currently/RB
in/IN
service/NN
,/,
he/PRP
said/VBD
./.
A/DT
frozen/JJ
mountaintop/NN
in/IN
Tibet/NNP
may/MD
offer/VB
an/DT
important/JJ
clue/NN
about/IN
whether/IN
the/DT
Earth/NNP
is/VBZ
warming/VBG
perilously/RB
./.
Researchers/NNS
at/IN
Ohio/NNP
State/NNP
University/NNP
and/CC
Lanzhou/NNP
Institute/NNP
of/IN
Glaciology/NNP
and/CC
Geocryology/NNP
in/IN
China/NNP
have/VBP
analyzed/VBN
samples/NNS
of/IN
glacial/JJ
ice/NN
in/IN
Tibet/NNP
and/CC
say/VBP
temperatures/NNS
there/RB
have/VBP
been/VBN
significantly/RB
higher/JJR
on/IN
average/NN
over/IN
the/DT
past/JJ
half-century/NN
than/IN
in/IN
any/DT
similar/JJ
period/NN
in/IN
the/DT
past/JJ
10,000/CD
years/NNS
./.
The/DT
ice/NN
samples/NNS
are/VBP
an/DT
important/JJ
piece/NN
of/IN
evidence/NN
supporting/VBG
theories/NNS
that/IN
the/DT
Earth/NNP
has/VBZ
warmed/VBN
considerably/RB
in/IN
recent/JJ
times/NNS
,/,
largely/RB
because/IN
of/IN
pollutants/NNS
in/IN
the/DT
air/NN
,/,
and/CC
will/MD
warm/VB
far/RB
more/RBR
in/IN
the/DT
century/NN
ahead/RB
./.
A/DT
substantial/JJ
warming/VBG
would/MD
melt/VB
some/DT
of/IN
the/DT
Earth/NNP
's/POS
polar/JJ
ice/NN
caps/NNS
,/,
raising/VBG
the/DT
level/NN
of/IN
the/DT
oceans/NNS
and/CC
causing/VBG
widespread/JJ
flooding/NN
of/IN
heavily/RB
populated/VBN
coastal/JJ
areas/NNS
./.
``/``
If/IN
you/PRP
can/MD
use/VB
data/NNS
to/TO
reconstruct/VB
what/WP
happened/VBD
in/IN
the/DT
past/NN
,/,
you/PRP
have/VBP
much/RB
more/JJR
confidence/NN
in/IN
predictions/NNS
for/IN
the/DT
future/NN
,/,
''/''
said/VBD
Lonnie/NNP
Thompson/NNP
,/,
a/DT
research/NN
scientist/NN
at/IN
Ohio/NNP
State/NNP
who/WP
dug/VBD
for/IN
and/CC
analyzed/VBD
the/DT
ice/NN
samples/NNS
./.
To/TO
compare/VB
temperatures/NNS
over/IN
the/DT
past/JJ
10,000/CD
years/NNS
,/,
researchers/NNS
analyzed/VBD
the/DT
changes/NNS
in/IN
concentrations/NNS
of/IN
two/CD
forms/NNS
of/IN
oxygen/NN
./.
These/DT
measurements/NNS
can/MD
indicate/VB
temperature/NN
changes/NNS
,/,
researchers/NNS
said/VBD
,/,
because/IN
the/DT
rates/NNS
of/IN
evaporation/NN
of/IN
these/DT
oxygen/NN
atoms/NNS
differ/VBP
as/IN
temperatures/NNS
change/VBP
./.
Analysis/NN
of/IN
ice/NN
from/IN
the/DT
Dunde/NNP
ice/NN
cap/NN
,/,
a/DT
glacial/JJ
plateau/NN
in/IN
Tibet/NNP
17,000/CD
feet/NNS
above/IN
sea/NN
level/NN
,/,
show/VBP
that/IN
average/JJ
temperatures/NNS
were/VBD
higher/JJR
in/IN
1937-87/CD
than/IN
in/IN
any/DT
other/JJ
50-year/JJ
period/NN
since/IN
before/IN
the/DT
last/JJ
Ice/NNP
Age/NNP
,/,
Mr./NNP
Thompson/NNP
said/VBD
./.
Some/DT
climate/NN
models/NNS
project/VBP
that/IN
interior/JJ
regions/NNS
of/IN
Asia/NNP
would/MD
be/VB
among/IN
the/DT
first/JJ
to/TO
heat/VB
up/RP
in/IN
a/DT
global/JJ
warming/NN
because/IN
they/PRP
are/VBP
far/RB
from/IN
oceans/NNS
,/,
which/WDT
moderate/VBP
temperature/NN
changes/NNS
./.
But/CC
the/DT
ice-core/NN
samples/NNS
are/VBP
n't/RB
definitive/JJ
proof/NN
that/IN
the/DT
so-called/JJ
greenhouse/NN
effect/NN
will/MD
lead/VB
to/TO
further/JJ
substantial/JJ
global/JJ
heating/NN
,/,
Mr./NNP
Thompson/NNP
acknowledged/VBD
./.
According/VBG
to/TO
greenhouse/NN
theories/NNS
,/,
increased/JJ
carbon/NN
dioxide/NN
emissions/NNS
,/,
largely/RB
caused/VBN
by/IN
burning/NN
of/IN
fossil/JJ
fuels/NNS
,/,
will/MD
cause/VB
the/DT
Earth/NNP
to/TO
warm/VB
up/RP
because/IN
carbon/NN
dioxide/NN
prevents/VBZ
heat/NN
from/IN
escaping/VBG
into/IN
space/NN
./.
Skeptics/NNS
say/VBP
that/IN
if/IN
that/DT
's/VBZ
the/DT
case/NN
,/,
temperatures/NNS
should/MD
have/VB
risen/VBN
fairly/RB
uniformly/RB
over/IN
the/DT
past/JJ
century/NN
,/,
reflecting/VBG
the/DT
increase/NN
in/IN
carbon/NN
dioxide/NN
./.
Instead/RB
,/,
the/DT
Dunde/NNP
ice-core/NN
record/NN
shows/VBZ
increasing/VBG
temperatures/NNS
from/IN
1900/CD
through/IN
the/DT
early/JJ
1950s/NNS
,/,
decreasing/VBG
temperatures/NNS
from/IN
the/DT
late/JJ
1950s/NNS
through/IN
the/DT
mid-1970s/NNS
,/,
then/RB
higher/JJR
temperatures/NNS
again/RB
through/IN
last/JJ
year/NN
./.
Other/JJ
temperature/NN
data/NNS
show/VBP
similar/JJ
unexplained/JJ
swings/NNS
./.
``/``
Climate/NN
varies/VBZ
drastically/RB
due/RB
to/TO
natural/JJ
causes/NNS
,/,
''/''
said/VBD
Mr./NNP
Thompson/NNP
./.
But/CC
he/PRP
said/VBD
ice/NN
samples/NNS
from/IN
Peru/NNP
,/,
Greenland/NNP
and/CC
Antarctica/NNP
all/DT
show/VBP
substantial/JJ
signs/NNS
of/IN
warming/VBG|NN
./.
Telxon/NNP
Corp./NNP
said/VBD
its/PRP$
vice/NN
president/NN
for/IN
manufacturing/NN
resigned/VBD
and/CC
its/PRP$
Houston/NNP
work/NN
force/NN
has/VBZ
been/VBN
trimmed/VBN
by/IN
40/CD
people/NNS
,/,
or/CC
about/RB
15/CD
%/NN
./.
The/DT
maker/NN
of/IN
hand-held/JJ
computers/NNS
and/CC
computer/NN
systems/NNS
said/VBD
the/DT
personnel/NNS
changes/NNS
were/VBD
needed/VBN
to/TO
improve/VB
the/DT
efficiency/NN
of/IN
its/PRP$
manufacturing/NN
operation/NN
./.
The/DT
company/NN
said/VBD
it/PRP
has/VBZ
n't/RB
named/VBN
a/DT
successor/NN
to/TO
Ronald/NNP
Bufton/NNP
,/,
the/DT
vice/NN
president/NN
who/WP
resigned/VBD
./.
Its/PRP$
Houston/NNP
work/NN
force/NN
now/RB
totals/VBZ
230/CD
./.
CNW/NNP
Corp./NNP
said/VBD
the/DT
final/JJ
step/NN
in/IN
the/DT
acquisition/NN
of/IN
the/DT
company/NN
has/VBZ
been/VBN
completed/VBN
with/IN
the/DT
merger/NN
of/IN
CNW/NNP
with/IN
a/DT
subsidiary/NN
of/IN
Chicago/NNP
&/CC
North/NNP
Western/NNP
Holdings/NNP
Corp/NNP
./.
As/IN
reported/VBN
,/,
CNW/NNP
agreed/VBD
to/TO
be/VB
acquired/VBN
by/IN
a/DT
group/NN
of/IN
investors/NNS
led/VBN
by/IN
Blackstone/NNP
Capital/NNP
Partners/NNP
Limited/NNP
Partnership/NNP
for/IN
$/$
50/CD
a/DT
share/NN
,/,
or/CC
about/RB
$/$
950/CD
million/CD
./.
Congress/NNP
sent/VBD
to/TO
President/NNP
Bush/NNP
an/DT
$/$
8.5/CD
billion/CD
military/JJ
construction/NN
bill/NN
that/WDT
cuts/VBZ
spending/NN
for/IN
new/JJ
installations/NNS
by/IN
16/CD
%/NN
while/IN
revamping/VBG
the/DT
Pentagon/NNP
budget/NN
to/TO
move/VB
more/JJR
than/IN
$/$
450/CD
million/CD
from/IN
foreign/JJ
bases/NNS
to/TO
home-state/JJ
projects/NNS
./.
The/DT
fiscal/JJ
1990/CD
measure/NN
builds/VBZ
on/IN
a/DT
pattern/NN
set/VBN
earlier/RBR
this/DT
year/NN
by/IN
House/NNP
and/CC
Senate/NNP
defense/NN
authorizing/VBG
committees/NNS
,/,
and/CC
--/:
at/IN
a/DT
time/NN
of/IN
retrenchment/NN
for/IN
the/DT
military/NN
and/CC
concern/NN
about/IN
the/DT
U.S./NNP
's/VBZ
standing/NN
in/IN
the/DT
world/NN
economy/NN
--/:
overseas/JJ
spending/NN
is/VBZ
most/RBS
vulnerable/JJ
./.
Total/JJ
Pentagon/NNP
requests/NNS
for/IN
installations/NNS
in/IN
West/NNP
Germany/NNP
,/,
Japan/NNP
,/,
South/NNP
Korea/NNP
,/,
the/DT
United/NNP
Kingdom/NNP
and/CC
the/DT
Philippines/NNPS
,/,
for/IN
example/NN
,/,
are/VBP
cut/VBN
by/IN
almost/RB
two-thirds/NNS
,/,
while/IN
lawmakers/NNS
added/VBD
to/TO
the/DT
military/JJ
budget/NN
for/IN
construction/NN
in/IN
all/DT
but/IN
a/DT
dozen/NN
states/NNS
at/IN
home/NN
./.
The/DT
result/NN
is/VBZ
that/IN
instead/RB
of/IN
the/DT
Pentagon/NNP
's/POS
proposed/JJ
split/NN
of/IN
60-40/JJ
between/IN
domestic/JJ
and/CC
foreign/JJ
bases/NNS
,/,
the/DT
reduced/JJ
funding/NN
is/VBZ
distributed/VBN
by/IN
a/DT
ratio/NN
of/IN
approximately/RB
70-30/JJ
./.
The/DT
extra/JJ
margin/NN
for/IN
bases/NNS
in/IN
the/DT
U.S./NNP
enhances/VBZ
the/DT
power/NN
of/IN
the/DT
appropriations/NNS
committees/NNS
;/:
meanwhile/RB
,/,
lawmakers/NNS
used/VBD
their/PRP$
positions/NNS
to/TO
garner/VB
as/RB
much/JJ
as/IN
six/CD
times/NNS
what/WP
the/DT
Pentagon/NNP
had/VBD
requested/VBN
for/IN
their/PRP$
individual/JJ
states/NNS
./.
House/NNP
Appropriations/NNP
Committee/NNP
Chairman/NNP
Jamie/NNP
Whitten/NNP
D./NNP
,/,
Miss/NNP
./.
secure/VB
$/$
49.7/CD
million/CD
for/IN
his/PRP$
state/NN
,/,
or/CC
more/JJR
than/IN
double/RB
the/DT
Pentagon/NNP
's/POS
budget/NN
./.
West/NNP
Virginia/NNP
,/,
home/NN
of/IN
Senate/NNP
Appropriations/NNP
Committee/NNP
Chairman/NNP
Robert/NNP
Byrd/NNP
,/,
would/MD
receive/VB
$/$
21.5/CD
million/CD
--/:
four/CD
times/NNS
the/DT
military/NN
's/POS
request/NN
./.
Tennessee/NNP
and/CC
North/NNP
Carolina/NNP
,/,
home/NN
states/NNS
of/IN
the/DT
two/CD
Democratic/JJ
chairmen/NNS
of/IN
the/DT
House/NNP
and/CC
Senate/NNP
military/JJ
construction/NN
subcommittees/NNS
,/,
receive/VBP
$/$
243.2/CD
million/CD
,/,
or/CC
25/CD
%/NN
above/IN
the/DT
Pentagon/NNP
's/POS
request/NN
./.
Though/IN
spending/NN
for/IN
Iowa/NNP
and/CC
Oregon/NNP
was/VBD
far/RB
less/JJR
,/,
their/PRP$
increases/NNS
above/IN
Pentagon/NNP
requests/NNS
--/:
640/CD
%/NN
and/CC
430/CD
%/NN
,/,
respectively/RB
--/:
were/VBD
much/RB
greater/JJR
because/IN
of/IN
the/DT
influence/NN
of/IN
Republicans/NNPS
at/IN
critical/JJ
junctures/NNS
./.
The/DT
swift/JJ
passage/NN
of/IN
the/DT
bill/NN
,/,
which/WDT
cleared/VBD
the/DT
Senate/NNP
and/CC
House/NNP
on/IN
simple/JJ
voice/NN
votes/NNS
last/JJ
week/NN
,/,
contrasts/VBZ
with/IN
the/DT
problems/NNS
still/RB
facing/VBG
a/DT
more/RBR
cumbersome/JJ
$/$
66.8/CD
billion/CD
measure/NN
funding/VBG
housing/NN
,/,
environmental/JJ
,/,
space/NN
and/CC
veterans/NNS
programs/NNS
./.
By/IN
an/DT
84-6/JJ
margin/NN
,/,
the/DT
Senate/NNP
approved/VBD
the/DT
bulk/NN
of/IN
the/DT
spending/NN
Friday/NNP
,/,
but/CC
the/DT
bill/NN
was/VBD
then/RB
sent/VBN
back/RB
to/TO
the/DT
House/NNP
to/TO
resolve/VB
the/DT
question/NN
of/IN
how/WRB
to/TO
address/VB
budget/NN
limits/NNS
on/IN
credit/NN
allocations/NNS
for/IN
the/DT
Federal/NNP
Housing/NNP
Administration/NNP
./.
The/DT
House/NNP
Democratic/JJ
leadership/NN
could/MD
seek/VB
to/TO
waive/VB
these/DT
restrictions/NNS
,/,
but/CC
the/DT
underlying/JJ
bill/NN
is/VBZ
already/RB
under/IN
attack/NN
for/IN
excesses/NNS
elsewhere/RB
./.
Appropriations/NNS
committees/NNS
have/VBP
used/VBN
an/DT
assortment/NN
of/IN
devices/NNS
to/TO
disguise/VB
as/RB
much/JJ
as/IN
$/$
1/CD
billion/CD
in/IN
spending/NN
,/,
and/CC
as/IN
critics/NNS
have/VBP
awakened/VBN
to/TO
these/DT
devices/NNS
,/,
the/DT
bill/NN
can/MD
seem/VB
like/IN
a/DT
wounded/JJ
caribou/NN
trying/VBG
to/TO
make/VB
it/PRP
past/IN
ice/NN
and/CC
wolves/NNS
to/TO
reach/VB
safer/JJR
winter/NN
grazing/NN
./.
Much/JJ
of/IN
the/DT
excess/JJ
spending/NN
will/MD
be/VB
pushed/VBN
into/IN
fiscal/JJ
1991/CD
,/,
and/CC
in/IN
some/DT
cases/NNS
is/VBZ
temporarily/RB
parked/VBN
in/IN
slow-spending/JJ
accounts/NNS
in/IN
anticipation/NN
of/IN
being/VBG
transferred/VBN
to/TO
faster-spending/JJ
areas/NNS
after/IN
the/DT
budget/NN
scorekeeping/NN
is/VBZ
completed/VBN
./.
For/IN
example/NN
,/,
a/DT
House-Senate/NNP
conference/NN
ostensibly/RB
increased/VBD
the/DT
National/NNP
Aeronautics/NNP
and/CC
Space/NNP
Administration/NNP
budget/NN
for/IN
construction/NN
of/IN
facilities/NNS
to/TO
nearly/RB
$/$
592/CD
million/CD
,/,
or/CC
more/JJR
than/IN
$/$
200/CD
million/CD
above/IN
what/WP
either/DT
chamber/NN
had/VBD
previously/RB
approved/VBN
./.
Part/NN
of/IN
the/DT
increase/NN
would/MD
provide/VB
$/$
90/CD
million/CD
toward/IN
ensuring/VBG
construction/NN
of/IN
a/DT
costly/JJ
solid/JJ
rocket-motor/NN
facility/NN
in/IN
Mr./NNP
Whitten/NNP
's/POS
Mississippi/NNP
./.
But/CC
as/RB
much/JJ
as/IN
$/$
177/CD
million/CD
,/,
or/CC
nearly/RB
30/CD
%/NN
of/IN
the/DT
account/NN
,/,
is/VBZ
marked/VBN
for/IN
potential/JJ
transfers/NNS
to/TO
research/NN
,/,
management/NN
and/CC
flight/NN
accounts/NNS
that/WDT
are/VBP
spent/VBN
out/RP
at/IN
a/DT
faster/JJR
clip/NN
./.
The/DT
bill/NN
's/POS
managers/NNS
face/VBP
criticism/NN
,/,
too/RB
,/,
for/IN
the/DT
unusual/JJ
number/NN
of/IN
conditions/NNS
openly/RB
imposed/VBN
on/IN
where/WRB
funds/NNS
will/MD
be/VB
spent/VBN
./.
Conservatives/NNS
,/,
embarrassed/VBN
by/IN
Republican/JJ
influence-peddling/NN
scandals/NNS
at/IN
the/DT
Department/NNP
of/IN
Housing/NNP
and/CC
Urban/NNP
Development/NNP
,/,
have/VBP
used/VBN
the/DT
issue/NN
in/IN
an/DT
effort/NN
to/TO
shift/VB
blame/VB
onto/IN
a/DT
Democratic-controlled/JJ
Congress/NNP
./.
HUD/NNP
Secretary/NNP
Jack/NNP
Kemp/NNP
backed/VBD
an/DT
unsuccessful/JJ
effort/NN
to/TO
strike/VB
such/JJ
language/NN
last/JJ
week/NN
,/,
but/CC
received/VBD
little/JJ
support/NN
from/IN
the/DT
White/NNP
House/NNP
budget/NN
office/NN
,/,
which/WDT
wants/VBZ
to/TO
protect/VB
space-station/NN
funding/NN
in/IN
the/DT
bill/NN
and/CC
has/VBZ
tended/VBN
to/TO
turn/VB
its/PRP$
eyes/NNS
from/IN
pork-barrel/JJ
amendments/NNS
./.
Within/IN
discretionary/JJ
funds/NNS
for/IN
community/NN
development/NN
grants/NNS
,/,
more/JJR
than/IN
$/$
3.7/CD
million/CD
is/VBZ
allocated/VBN
to/TO
six/CD
projects/NNS
in/IN
Michigan/NNP
,/,
home/NN
state/NN
of/IN
a/DT
subcommittee/NN
chairman/NN
,/,
Rep./NNP
Bob/NNP
Traxler/NNP
./.
House/NNP
Speaker/NNP
Thomas/NNP
Foley/NNP
won/VBD
$/$
510,000/CD
for/IN
a/DT
project/NN
in/IN
his/PRP$
district/NN
in/IN
Washington/NNP
state/NN
,/,
and/CC
$/$
1.3/CD
million/CD
,/,
earmarked/VBN
by/IN
Sen./NNP
Daniel/NNP
Inouye/NNP
,/,
amounts/VBZ
to/TO
a/DT
business/NN
subsidy/NN
under/IN
the/DT
title/NN
``/``
Hawaiian/JJ
sugar/NN
mills/NNS
job/NN
retention/NN
./.
''/''
The/DT
powerful/JJ
Democrat/NNP
had/VBD
first/RB
wanted/VBN
to/TO
add/VB
language/NN
relaxing/VBG
environmental/JJ
restrictions/NNS
on/IN
two/CD
mills/NNS
on/IN
the/DT
Hamakua/NN
coast/NN
that/WDT
are/VBP
threatening/VBG
to/TO
close/VB
./.
When/WRB
this/DT
plan/NN
met/VBD
resistance/NN
,/,
it/PRP
was/VBD
agreed/VBN
instead/RB
to/TO
take/VB
money/NN
from/IN
HUD/NNP
to/TO
subsidize/VB
needed/JJ
improvements/NNS
in/IN
two/CD
settling/NN
ponds/NNS
for/IN
the/DT
mills/NNS
,/,
which/WDT
employ/VBP
an/DT
estimated/JJ
1,500/CD
workers/NNS
,/,
according/VBG
to/TO
Mr./NNP
Inouye/NNP
's/POS
office/NN
./.
Dennis/NNP
Farney/NNP
's/POS
Oct./NNP
13/CD
page-one/JJ
article/NN
``/``
River/NN
of/IN
Despair/NN
,/,
''/''
about/IN
the/DT
poverty/NN
along/IN
the/DT
Mississippi/NNP
,/,
fanned/VBD
childhood/NN
memories/NNS
of/IN
when/WRB
my/PRP$
parents/NNS
were/VBD
sharecroppers/NNS
in/IN
southeastern/JJ
Arkansas/NNP
,/,
only/RB
a/DT
few/JJ
miles/NNS
from/IN
the/DT
river/NN
./.
Although/IN
we/PRP
were/VBD
white/JJ
,/,
the/DT
same/JJ
economic/JJ
factors/NNS
affected/VBD
us/PRP
as/IN
affects/VBZ
the/DT
black/JJ
people/NNS
Mr./NNP
Farney/NNP
writes/VBZ
about/IN
./.
Fortunately/RB
,/,
an/DT
aunt/NN
with/IN
a/DT
college/NN
degree/NN
bought/VBD
a/DT
small/JJ
farm/NN
and/CC
moved/VBD
us/PRP
50/CD
miles/NNS
north/RB
to/TO
good/JJ
schools/NNS
and/CC
an/DT
environment/NN
that/WDT
opened/VBD
the/DT
world/NN
of/IN
opportunity/NN
for/IN
me/PRP
as/IN
an/DT
eight-year-old/NN
./.
Though/NNP
I/PRP
've/VBP
been/VBN
blessed/VBN
with/IN
academic/JJ
degrees/NNS
and/CC
some/DT
success/NN
in/IN
the/DT
materialistic/JJ
world/NN
,/,
I/PRP
've/VBP
never/RB
forgotten/VBN
or/CC
lost/VBN
contact/NN
with/IN
those/DT
memories/NNS
of/IN
the/DT
1930s/CD
./.
Most/JJS
of/IN
the/DT
land/NN
in/IN
that/DT
and/CC
other/JJ
parts/NNS
of/IN
the/DT
Delta/NNP
are/VBP
now/RB
owned/VBN
by/IN
second/JJ
,/,
third/JJ
or/CC
fourth/JJ
generations/NNS
of/IN
the/DT
same/JJ
families/NNS
./.
These/DT
are/VBP
the/DT
families/NNS
who/WP
used/VBD
--/:
and/CC
sometime/RB
abused/VBN
--/:
their/PRP$
sharecroppers/NNS
,/,
people/NNS
who/WP
had/VBD
no/DT
encouragement/NN
and/CC
little/JJ
access/NN
to/TO
an/DT
education/NN
or/CC
training/NN
for/IN
a/DT
better/JJR
life/NN
./.
Following/VBG
World/NNP
War/NNP
II/NNP
,/,
when/WRB
one/CD
family/NN
with/IN
mechanized/JJ
equipment/NN
could/MD
farm/VB
crops/NNS
formerly/RB
requiring/VBG
20/CD
families/NNS
,/,
the/DT
surplus/JJ
people/NNS
were/VBD
dumped/VBN
into/IN
the/DT
mainstream/NN
of/IN
society/NN
with/IN
no/DT
Social/NNP
Security/NNP
,/,
no/DT
skills/NNS
in/IN
the/DT
workplace/NN
,/,
no/DT
hope/NN
for/IN
their/PRP$
future/NN
except/IN
welfare/NN
./.
And/CC
today/NN
,/,
many/JJ
of/IN
their/PRP$
children/NNS
,/,
grandchildren/NNS
and/CC
great-grandchildren/NNS
remain/VBP
on/IN
welfare/NN
./.
In/IN
the/DT
meantime/NN
,/,
the/DT
landowners/NNS
continue/VBP
receiving/VBG
generous/JJ
subsidies/NNS
that/WDT
began/VBD
during/IN
New/NNP
Deal/NNP
days/NNS
./.
Or/CC
those/DT
who/WP
choose/VBP
not/RB
to/TO
farm/NN
can/MD
lease/VB
their/PRP$
lands/NNS
and/CC
crop/NN
allotments/NNS
for/IN
handsome/JJ
sums/NNS
./.
Farmers/NNS
in/IN
the/DT
Midwest/NNP
and/CC
other/JJ
areas/NNS
have/VBP
suffered/VBN
,/,
but/CC
those/DT
along/IN
the/DT
Mississippi/NNP
continue/VBP
to/TO
prosper/VB
with/IN
holdings/NNS
that/WDT
were/VBD
built/VBN
with/IN
the/DT
sweat/NN
of/IN
men/NNS
and/CC
women/NNS
living/VBG
in/IN
economic/JJ
slavery/NN
./.
And/CC
when/WRB
they/PRP
were/VBD
no/RB
longer/RBR
needed/VBN
,/,
they/PRP
were/VBD
turned/VBN
loose/RB
unprepared/JJ
to/TO
build/VB
lives/NNS
of/IN
their/PRP$
own/JJ
./.
Denton/NNP
Harris/NNP
Chairman/NN
Metro/NNP
Bank/NNP
Atlanta/NNP
Because/IN
the/DT
cycle/NN
of/IN
poverty/NN
along/IN
the/DT
lower/JJR
Mississippi/NNP
goes/VBZ
back/RB
so/RB
many/JJ
generations/NNS
,/,
breaking/VBG
this/DT
cycle/NN
will/MD
be/VB
next/RB
to/TO
impossible/JJ
./.
Sadly/RB
,/,
the/DT
cycle/NN
appears/VBZ
not/RB
as/IN
waves/NNS
but/CC
as/IN
a/DT
downward/JJ
spiral/NN
./.
Yet/CC
the/DT
evidence/NN
that/IN
we/PRP
have/VBP
not/RB
hit/VBN
bottom/NN
is/VBZ
found/VBN
in/IN
the/DT
fact/NN
that/IN
we/PRP
are/VBP
not/RB
yet/RB
helping/VBG
ourselves/PRP
./.
The/DT
people/NNS
of/IN
the/DT
Delta/NNP
are/VBP
waiting/VBG
for/IN
that/DT
big/JJ
factory/NN
to/TO
open/VB
,/,
river/NN
traffic/NN
to/TO
increase/NN
,/,
government/NN
spending/NN
to/TO
fund/VB
job-training/NN
programs/NNS
or/CC
public/JJ
schools/NNS
to/TO
educate/VB
apathetic/JJ
students/NNS
./.
Because/IN
we/PRP
refuse/VBP
to/TO
face/VB
the/DT
tough/JJ
answers/NNS
,/,
the/DT
questions/NNS
continue/VBP
as/IN
fodder/NN
for/IN
the/DT
commissions/NNS
and/CC
committees/NNS
,/,
for/IN
the/DT
media/NNS
and/CC
politicians/NNS
./.
Coffee-shop/NN
chatter/NN
does/VBZ
not/RB
lend/VB
itself/PRP
to/TO
solving/VBG
the/DT
problems/NNS
of/IN
racism/NN
,/,
teen/JJ
pregnancy/NN
or/CC
lack/NN
of/IN
parental/JJ
support/NN
or/CC
guidance/NN
./.
Does/NNP
the/DT
Delta/NNP
deserve/VB
government/NN
help/NN
in/IN
attracting/VBG
industry/NN
when/WRB
the/DT
majority/NN
of/IN
residents/NNS
,/,
black/JJ
and/CC
white/JJ
,/,
do/VB
not/RB
realize/VB
racism/NN
alienates/VBZ
potential/JJ
employers/NNS
?/.
Should/MD
we/PRP
focus/VB
on/IN
the/DT
region/NN
's/POS
infant-mortality/NN
rate/NN
when/WRB
the/DT
vocal/JJ
right-wingers/NNS
and/CC
the/DT
school/NN
boards/NNS
,/,
mayors/NNS
and/CC
legislators/NNS
prohibit/VBP
schools/NNS
from/IN
teaching/VBG
the/DT
two/CD
ways/NNS
abstinence/NN
or/CC
contraceptives/NNS
teen/JJ
pregnancy/NN
?/.
Delta/NNP
problems/NNS
are/VBP
difficult/JJ
,/,
not/RB
impossible/JJ
,/,
to/TO
solve/VB
--/:
I/PRP
am/VBP
just/RB
not/RB
convinced/JJ
that/IN
we/PRP
are/VBP
ready/JJ
to/TO
solve/VB
them/PRP
yet/RB
./.
Leslie/NNP
Falls/NNP
Humphries/NNP
Little/NNP
Rock/NNP
,/,
Ark/NNP
./.
I/PRP
would/MD
like/VB
to/TO
issue/VB
a/DT
challenge/NN
to/TO
corporate/JJ
America/NNP
./.
The/DT
next/JJ
time/NN
expansion/NN
plans/NNS
are/VBP
mentioned/VBN
at/IN
the/DT
old/JJ
company/NN
and/CC
somebody/NN
says/VBZ
,/,
``/``
Aw/UH
heck/UH
,/,
guys/NNS
,/,
nobody/NN
can/MD
do/VB
it/PRP
like/IN
Japan/NNP
or/CC
South/NNP
Korea/NNP
,/,
''/''
I/PRP
wish/VBP
you/PRP
would/MD
butt/VB
in/RP
and/CC
say/VB
,/,
``/``
Hold/VB
it/PRP
,/,
fellas/NNS
,/,
why/WRB
do/VBP
n't/RB
we/PRP
compare/VB
prices/NNS
and/CC
use/VB
our/PRP$
own/JJ
little/JJ
Third/NNP
World/NNP
country/NN
./.
We/PRP
would/MD
even/RB
save/VB
on/IN
freight/NN
./.
''/''
There/EX
is/VBZ
no/DT
mystery/NN
why/WRB
the/DT
Delta/NN
originated/VBP
``/``
Singin/VBG
'/''
the/DT
Blues/NNS
./.
''/''
Eugene/NNP
S./NNP
Clarke/NNP
IV/NNP
Hollandale/NNP
,/,
Miss/NNP
./.
Your/PRP$
story/NN
is/VBZ
an/DT
insult/NN
to/TO
the/DT
citizens/NNS
of/IN
the/DT
Mississippi/NNP
Delta/NNP
./.
Many/JJ
of/IN
the/DT
problems/NNS
you/PRP
presented/VBN
exist/VBP
in/IN
every/DT
part/NN
of/IN
this/DT
country/NN
./.
Poverty/NN
is/VBZ
only/RB
two/CD
blocks/NNS
from/IN
President/NNP
Bush/NNP
's/POS
residence/NN
./.
For/IN
years/NNS
,/,
we/PRP
tried/VBD
to/TO
ignore/VB
the/DT
problem/NN
of/IN
poverty/NN
,/,
and/CC
now/RB
that/IN
it/PRP
has/VBZ
gotten/VBN
out/IN
of/IN
hand/NN
it/PRP
's/VBZ
a/DT
new/JJ
crusade/NN
for/IN
the/DT
media/NNS
and/CC
our/PRP$
Democratic/JJ
Congress/NNP
./.
Nobody/NN
should/MD
have/VB
to/TO
live/VB
in/IN
such/JJ
poor/JJ
conditions/NNS
as/IN
in/IN
``/``
Sugar/NNP
Ditch/NNP
,/,
''/''
but/CC
when/WRB
you/PRP
travel/VBP
to/TO
Washington/NNP
,/,
Boston/NNP
,/,
Chicago/NNP
or/CC
New/NNP
York/NNP
,/,
the/DT
same/JJ
problems/NNS
exist/VBP
./.
The/DT
only/JJ
difference/NN
is/VBZ
,/,
in/IN
those/DT
cities/NNS
the/DT
poor/JJ
are/VBP
housed/VBN
in/IN
high-rise-project/JJ
apartments/NNS
each/DT
consisting/VBG
of/IN
one/CD
room/NN
,/,
with/IN
rusty/JJ
pipes/NNS
called/VBN
plumbing/NN
,/,
rodents/NNS
and/CC
cockroaches/NNS
everywhere/RB
and/CC
nonworking/JJ
elevators/NNS
--/:
and/CC
with/IN
the/DT
building/NN
patrolled/VBN
by/IN
gangs/NNS
and/CC
drug/NN
dealers/NNS
./.
Many/JJ
middle-class/JJ
people/NNS
would/MD
love/VB
free/JJ
food/NN
,/,
Medicaid/NNP
insurance/NN
,/,
utilities/NNS
and/CC
rent/NN
./.
Then/RB
maybe/RB
I/PRP
could/MD
stay/VB
home/RB
and/CC
have/VB
seven/CD
children/NNS
and/CC
watch/VB
Oprah/NNP
Winfrey/NNP
,/,
like/IN
Beulah/NNP
in/IN
the/DT
article/NN
,/,
instead/RB
of/IN
having/VBG
one/CD
child/NN
and/CC
working/VBG
constantly/RB
just/RB
to/TO
stay/VB
above/IN
water/NN
,/,
like/IN
so/RB
many/JJ
families/NNS
in/IN
this/DT
country/NN
./.
Dee/NNP
Ann/NNP
Wilson/NNP
Greenville/NNP
,/,
Miss/NNP
./.
Mobil/NNP
Corp./NNP
is/VBZ
in/IN
the/DT
midst/NN
of/IN
cutting/VBG
back/RP
its/PRP$
exploration/NN
and/CC
production/NN
group/NN
,/,
which/WDT
finds/VBZ
and/CC
develops/VBZ
oil/NN
and/CC
gas/NN
reserves/NNS
in/IN
the/DT
U.S./NNP
,/,
by/IN
as/RB
much/JJ
as/IN
15/CD
%/NN
as/IN
part/NN
of/IN
a/DT
new/JJ
restructuring/NN
of/IN
that/DT
sector/NN
of/IN
its/PRP$
business/NN
./.
Management/NN
advised/VBD
employees/NNS
Friday/NNP
that/IN
it/PRP
was/VBD
going/VBG
to/TO
reduce/VB
employment/NN
in/IN
production/NN
operations/NNS
of/IN
the/DT
group/NN
by/IN
8/CD
%/NN
,/,
or/CC
400/CD
people/NNS
./.
The/DT
exploration/NN
side/NN
of/IN
the/DT
unit/NN
has/VBZ
recently/RB
undergone/VBN
a/DT
similar/JJ
overhaul/NN
,/,
during/IN
which/WDT
it/PRP
also/RB
lost/VBD
as/RB
many/JJ
as/IN
400/CD
employees/NNS
,/,
a/DT
company/NN
spokesman/NN
said/VBD
in/IN
response/NN
to/TO
questions/NNS
./.
Mobil/NNP
Exploration/NNP
&/CC
Producing/NNP
U.S./NNP
Inc./NNP
,/,
the/DT
group/NN
involved/VBN
,/,
currently/RB
has/VBZ
a/DT
work/NN
force/NN
of/IN
somewhat/RB
less/JJR
than/IN
5,000/CD
./.
A/DT
few/JJ
years/NNS
ago/RB
,/,
Mobil/NNP
restructured/VBD
the/DT
entire/JJ
company/NN
during/IN
an/DT
industrywide/JJ
shakeout/NN
./.
But/CC
since/IN
then/RB
U.S./NNP
oil/NN
production/NN
has/VBZ
declined/VBN
and/CC
Mobil/NNP
wants/VBZ
to/TO
focus/VB
its/PRP$
oil-finding/JJ
efforts/NNS
overseas/RB
./.
Mobil/NNP
alluded/VBD
to/TO
the/DT
work-force/NN
cuts/NNS
last/JJ
week/NN
when/WRB
it/PRP
took/VBD
a/DT
$/$
40/CD
million/CD
charge/NN
as/IN
part/NN
of/IN
its/PRP$
third-quarter/JJ
earnings/NNS
and/CC
attributed/VBD
it/PRP
to/TO
a/DT
restructuring/NN
./.
Mobil/NNP
officials/NNS
said/VBD
that/IN
it/PRP
is/VBZ
unlikely/JJ
any/DT
additional/JJ
charges/NNS
related/VBN
to/TO
this/DT
move/NN
will/MD
be/VB
taken/VBN
in/IN
future/JJ
quarters/NNS
./.
On/IN
Wednesday/NNP
,/,
Mobil/NNP
will/MD
begin/VB
offering/VBG
separation/NN
packages/NNS
and/CC
voluntary/JJ
retirement/NN
in/IN
its/PRP$
U.S./NNP
production/NN
operation/NN
./.
Mobil/NNP
officials/NNS
said/VBD
they/PRP
have/VBP
been/VBN
studying/VBG
ways/NNS
of/IN
streamlining/VBG
these/DT
operations/NNS
since/IN
early/RB
this/DT
year/NN
./.
During/IN
the/DT
coming/JJ
months/NNS
,/,
layers/NNS
of/IN
management/NN
will/MD
be/VB
peeled/VBN
away/RB
and/CC
regional/JJ
offices/NNS
will/MD
become/VB
more/RBR
autonomous/JJ
./.
For/IN
greater/JJR
efficiency/NN
,/,
employees/NNS
at/IN
those/DT
locations/NNS
will/MD
be/VB
reorganized/VBN
into/IN
teams/NNS
responsible/JJ
for/IN
managing/VBG
the/DT
properties/NNS
under/IN
their/PRP$
jurisdiction/NN
,/,
Mobil/NNP
said/VBD
./.
``/``
The/DT
main/JJ
feature/NN
of/IN
the/DT
new/JJ
organization/NN
is/VBZ
that/IN
each/DT
local/JJ
manager/NN
will/MD
have/VB
both/CC
the/DT
authority/NN
and/CC
accountability/NN
for/IN
profitable/JJ
and/CC
technically/RB
sound/JJ
operations/NNS
,/,
''/''
said/VBD
Charles/NNP
E./NNP
Spruell/NNP
,/,
president/NN
of/IN
the/DT
Mobil/NNP
unit/NN
./.
Field/NN
offices/NNS
at/IN
New/NNP
Orleans/NNP
;/:
Houston/NNP
;/:
Denver/NNP
;/:
Midland/NNP
,/,
Tex./NNP
;/:
Bakersfield/NNP
,/,
Calif./NNP
;/:
Oklahoma/NNP
City/NNP
;/:
and/CC
Liberal/NNP
,/,
Kan./NNP
,/,
will/MD
be/VB
maintained/VBN
./.
But/CC
the/DT
staffs/NNS
at/IN
some/DT
of/IN
those/DT
locations/NNS
will/MD
be/VB
slashed/VBN
while/IN
at/IN
others/NNS
the/DT
work/NN
force/NN
will/MD
be/VB
increased/VBN
./.
For/IN
instance/NN
,/,
employment/NN
in/IN
Denver/NNP
will/MD
be/VB
reduced/VBN
to/TO
105/CD
from/IN
430/CD
./.
But/CC
on/IN
the/DT
West/NNP
Coast/NNP
,/,
where/WRB
profitable/JJ
oil/NN
production/NN
is/VBZ
more/RBR
likely/JJ
than/IN
in/IN
the/DT
midcontinent/JJ
region/NN
,/,
the/DT
Bakersfield/NNP
,/,
Calif./NNP
,/,
office/NN
staff/NN
of/IN
130/CD
will/MD
grow/VB
by/IN
175/CD
to/TO
305/CD
./.
The/DT
reorganization/NN
will/MD
``/``
focus/VB
on/IN
the/DT
value/NN
and/CC
potential/NN
of/IN
assets/NNS
,/,
''/''
Mr./NNP
Spruell/NNP
said/VBD
./.
Wanted/VBN
:/:
An/DT
investment/NN
that/WDT
's/VBZ
as/RB
simple/JJ
and/CC
secure/JJ
as/IN
a/DT
certificate/NN
of/IN
deposit/NN
but/CC
offers/VBZ
a/DT
return/NN
worth/IN
getting/VBG
excited/JJ
about/IN
./.
With/IN
$/$
150/CD
billion/CD
of/IN
CDs/NNS
maturing/VBG
this/DT
month/NN
,/,
a/DT
lot/NN
of/IN
people/NNS
have/VBP
been/VBN
scouring/VBG
the/DT
financial/JJ
landscape/NN
for/IN
just/RB
such/PDT
an/DT
investment/NN
./.
In/IN
April/NNP
,/,
when/WRB
many/JJ
of/IN
them/PRP
bought/VBD
their/PRP$
CDs/NNS
,/,
six-month/JJ
certificates/NNS
were/VBD
yielding/VBG
more/JJR
than/IN
9/CD
%/NN
;/:
investors/NNS
willing/JJ
to/TO
look/VB
could/MD
find/VB
double-digit/JJ
yields/NNS
at/IN
some/DT
banks/NNS
and/CC
thrifts/NNS
./.
Now/RB
,/,
the/DT
nationwide/JJ
average/JJ
yield/NN
on/IN
a/DT
six-month/JJ
CD/NNP
is/VBZ
just/RB
under/IN
8/CD
%/NN
,/,
and/CC
8.5/CD
%/NN
is/VBZ
about/RB
the/DT
best/JJS
around/RB
./.
But/CC
investors/NNS
looking/VBG
for/IN
alternatives/NNS
are/VBP
n't/RB
finding/VBG
it/PRP
easy/JJ
./.
Yields/NNS
on/IN
most/JJS
fixed-income/JJ
securities/NNS
are/VBP
lower/JJR
than/IN
several/JJ
months/NNS
ago/RB
./.
And/CC
the/DT
stock/NN
market/NN
's/POS
recent/JJ
gyrations/NNS
are/VBP
a/DT
painful/JJ
reminder/NN
of/IN
the/DT
dangers/NNS
there/RB
./.
``/``
If/IN
you/PRP
're/VBP
looking/VBG
for/IN
a/DT
significantly/RB
higher/JJR
yield/NN
with/IN
the/DT
same/JJ
level/NN
of/IN
risk/NN
as/IN
a/DT
CD/NNP
,/,
you/PRP
're/VBP
not/RB
going/VBG
to/TO
find/VB
it/PRP
,/,
''/''
says/VBZ
Washington/NNP
financial/JJ
planner/NN
Dennis/NNP
M./NNP
Gurtz/NNP
./.
There/EX
are/VBP
,/,
however/RB
,/,
some/DT
alternatives/NNS
that/IN
income-oriented/JJ
investors/NNS
should/MD
consider/VB
,/,
investment/NN
advisers/NNS
say/VBP
./.
Short-term/JJ
municipal/JJ
bonds/NNS
,/,
bond/NN
funds/NNS
and/CC
tax-deferred/JJ
annuities/NNS
are/VBP
some/DT
of/IN
the/DT
choices/NNS
they/PRP
mention/VBP
--/:
and/CC
not/RB
just/RB
as/IN
a/DT
way/NN
to/TO
get/VB
a/DT
higher/JJR
return/NN
./.
In/IN
particular/JJ
,/,
advisers/NNS
say/VBP
,/,
investors/NNS
may/MD
want/VB
to/TO
look/VB
at/IN
securities/NNS
that/WDT
reduce/VBP
the/DT
risk/NN
that/IN
CD/NNP
holders/NNS
are/VBP
confronting/VBG
right/RB
now/RB
,/,
of/IN
having/VBG
to/TO
reinvest/VB
the/DT
proceeds/NNS
of/IN
maturing/VBG
short-term/JJ
certificates/NNS
at/IN
lower/JJR
rates/NNS
./.
A/DT
mix/NN
of/IN
CDs/NNS
and/CC
other/JJ
holdings/NNS
may/MD
make/VB
the/DT
most/JJS
sense/NN
./.
``/``
People/NNS
should/MD
remember/VB
their/PRP$
money/NN
is/VBZ
n't/RB
all/DT
or/CC
nothing/NN
--/:
they/PRP
do/VBP
n't/RB
need/VB
to/TO
be/VB
shopping/VBG
for/IN
the/DT
one/CD
interest-rate-type/JJ
investment/NN
and/CC
putting/VBG
all/PDT
their/PRP$
money/NN
in/IN
it/PRP
,/,
''/''
says/VBZ
Bethesda/NNP
,/,
Md./NNP
,/,
adviser/NN
Karen/NNP
Schaeffer/NNP
./.
Here/RB
's/VBZ
a/DT
look/NN
at/IN
some/DT
of/IN
the/DT
alternatives/NNS
:/:
SHORT-TERM/JJ
MUNICIPALS/NNS
:/:
Investors/NNS
with/IN
a/DT
heavy/JJ
tax/NN
load/NN
should/MD
take/VB
out/RP
their/PRP$
calculators/NNS
./.
Yields/NNS
on/IN
municipal/JJ
bonds/NNS
can/MD
be/VB
higher/JJR
than/IN
after-tax/JJ
yields/NNS
on/IN
CDs/NNS
for/IN
maturities/NNS
of/IN
perhaps/RB
one/CD
to/TO
five/CD
years/NNS
./.
That/DT
's/VBZ
because/RB
municipal-bond/JJ
interest/NN
is/VBZ
exempt/JJ
from/IN
federal/JJ
income/NN
tax/NN
--/:
and/CC
from/IN
state/NN
and/CC
local/JJ
taxes/NNS
too/RB
,/,
for/IN
in-state/JJ
investors/NNS
./.
For/IN
an/DT
investor/NN
paying/VBG
tax/NN
at/IN
a/DT
33/CD
%/NN
rate/NN
,/,
a/DT
seemingly/RB
puny/JJ
6/CD
%/NN
yield/NN
on/IN
a/DT
one-year/JJ
muni/NNS
is/VBZ
equivalent/JJ
to/TO
a/DT
taxable/JJ
9/CD
%/NN
./.
Rates/NNS
approach/VBP
6.5/CD
%/NN
on/IN
five-year/JJ
municipals/NNS
./.
Some/DT
of/IN
the/DT
more/RBR
cautious/JJ
CD/NNP
holders/NNS
might/MD
like/VB
``/``
pre-refunded/JJ
''/''
municipals/NNS
./.
These/DT
securities/NNS
get/VBP
top/JJ
credit/NN
ratings/NNS
because/IN
the/DT
issuers/NNS
have/VBP
put/VBN
aside/RP
U.S./NNP
bonds/NNS
that/WDT
will/MD
be/VB
sold/VBN
to/TO
pay/VB
off/RP
holders/NNS
when/WRB
the/DT
municipals/NNS
are/VBP
retired/VBN
./.
``/``
It/PRP
's/VBZ
a/DT
no-brainer/NN
:/:
You/PRP
do/VBP
n't/RB
have/VB
to/TO
worry/VB
about/IN
diversification/NN
;/:
you/PRP
do/VBP
n't/RB
have/VB
to/TO
worry/VB
about/IN
quality/NN
,/,
''/''
says/VBZ
Steven/NNP
J./NNP
Hueglin/NNP
,/,
executive/JJ
vice/NN
president/NN
of/IN
the/DT
New/NNP
York/NNP
bond/NN
firm/NN
of/IN
Gabriele/NNP
,/,
Hueglin/NNP
&/CC
Cashman/NNP
Inc/NNP
./.
Consider/VB
a/DT
``/``
laddered/JJ
''/''
bond/NN
portfolio/NN
,/,
with/IN
issues/NNS
maturing/VBG
in/IN
,/,
say/VB
,/,
1992/CD
,/,
1993/CD
and/CC
1994/CD
,/,
advises/VBZ
Malcolm/NNP
A./NN
Makin/NNP
,/,
a/DT
Westerly/NNP
,/,
R.I./NNP
,/,
financial/JJ
planner/NN
./.
The/DT
idea/NN
is/VBZ
to/TO
have/VB
money/NN
rolling/VBG
over/RP
each/DT
year/NN
at/IN
prevailing/JJ
interest/NN
rates/NNS
./.
BOND/NN
FUNDS/NNS
:/:
Bond/NN
mutual/JJ
funds/NNS
offer/VBP
diversification/NN
and/CC
are/VBP
easy/JJ
to/TO
buy/VB
and/CC
sell/VB
./.
That/DT
makes/VBZ
them/PRP
a/DT
reasonable/JJ
option/NN
for/IN
investors/NNS
who/WP
will/MD
accept/VB
some/DT
risk/NN
of/IN
price/NN
fluctuation/NN
in/IN
order/NN
to/TO
make/VB
a/DT
bet/NN
that/IN
interest/NN
rates/NNS
will/MD
decline/VB
over/IN
the/DT
next/JJ
year/NN
or/CC
so/RB
./.
Buyers/NNS
can/MD
look/VB
forward/RB
to/TO
double-digit/JJ
annual/JJ
returns/NNS
if/IN
they/PRP
are/VBP
right/JJ
./.
But/CC
they/PRP
will/MD
have/VB
disappointing/JJ
returns/NNS
or/CC
even/JJ
losses/NNS
if/IN
interest/NN
rates/NNS
rise/VBP
instead/RB
./.
Bond/NN
resale/NN
prices/NNS
,/,
and/CC
thus/RB
fund/NN
share/NN
prices/NNS
,/,
move/VBP
in/IN
the/DT
opposite/JJ
direction/NN
from/IN
rates/NNS
./.
The/DT
price/NN
movements/NNS
get/VB
bigger/JJR
as/IN
the/DT
maturity/NN
of/IN
the/DT
securities/NNS
lengthens/VBZ
./.
Consider/VB
,/,
for/IN
instance/NN
,/,
two/CD
bond/NN
funds/NNS
from/IN
Vanguard/NNP
Group/NNP
of/IN
Investment/NNP
Cos./NNP
that/WDT
were/VBD
both/DT
yielding/VBG
8.6/CD
%/NN
on/IN
a/DT
recent/JJ
day/NN
./.
The/DT
Short/NNP
Term/NNP
Bond/NNP
Fund/NNP
,/,
with/IN
an/DT
average/JJ
maturity/NN
of/IN
2/CD
1\/2/CD
years/NNS
,/,
would/MD
deliver/VB
a/DT
total/JJ
return/NN
for/IN
one/CD
year/NN
of/IN
about/RB
10.6/CD
%/NN
if/IN
rates/NNS
drop/VBP
one/CD
percentage/NN
point/NN
and/CC
a/DT
one-year/JJ
return/NN
of/IN
about/RB
6.6/CD
%/NN
if/IN
rates/NNS
rise/VBP
by/IN
the/DT
same/JJ
amount/NN
./.
But/CC
,/,
in/IN
the/DT
same/JJ
circumstances/NNS
,/,
the/DT
returns/NNS
would/MD
be/VB
a/DT
more/RBR
extreme/JJ
14.6/CD
%/NN
and/CC
2.6/CD
%/NN
for/IN
the/DT
Vanguard/NNP
Bond/NNP
Market/NNP
Fund/NNP
,/,
with/IN
its/PRP$
12/CD
1\/2-year/JJ
average/JJ
maturity/NN
./.
``/``
You/PRP
get/VB
equity-like/JJ
returns/NNS
''/''
from/IN
bonds/NNS
if/IN
you/PRP
guess/VB
right/RB
on/IN
rates/NNS
,/,
says/VBZ
James/NNP
E./NNP
Wilson/NNP
,/,
a/DT
Columbia/NNP
,/,
S.C./NNP
,/,
planner/NN
./.
If/IN
interest/NN
rates/NNS
do/VBP
n't/RB
change/VB
,/,
bond/NN
fund/NN
investors/NNS
'/POS
returns/NNS
will/MD
be/VB
about/RB
equal/JJ
to/TO
the/DT
funds/NNS
'/POS
current/JJ
yields/NNS
./.
DEFERRED/JJ
ANNUITIES/NNS
:/:
These/DT
insurance/NN
company/NN
contracts/NNS
feature/VBP
some/DT
of/IN
the/DT
same/JJ
tax/NN
benefits/NNS
and/CC
restrictions/NNS
as/IN
non-deductible/JJ
individual/JJ
retirement/NN
accounts/NNS
:/:
Investment/NN
gains/NNS
are/VBP
compounded/VBN
without/IN
tax/NN
consequences/NNS
until/IN
money/NN
is/VBZ
withdrawn/VBN
,/,
but/CC
a/DT
10/CD
%/NN
penalty/NN
tax/NN
is/VBZ
imposed/VBN
on/IN
withdrawals/NNS
made/VBN
before/IN
age/NN
59/CD
1\/2/CD
./.
Aimed/VBN
specifically/RB
at/IN
CD/NNP
holders/NNS
are/VBP
so-called/JJ
CD-type/JJ
annuities/NNS
,/,
or/CC
certificates/NNS
of/IN
annuity/NN
./.
An/DT
interest/NN
rate/NN
is/VBZ
guaranteed/VBN
for/IN
between/IN
one/CD
and/CC
seven/CD
years/NNS
,/,
after/IN
which/WDT
holders/NNS
get/VBP
30/CD
days/NNS
to/TO
choose/VB
another/DT
guarantee/NN
period/NN
or/CC
to/TO
switch/VB
to/TO
another/DT
insurer/NN
's/POS
contract/NN
without/IN
the/DT
surrender/NN
charges/NNS
that/WDT
are/VBP
common/JJ
to/TO
annuities/NNS
./.
Some/DT
current/JJ
rates/NNS
exceed/VBP
those/DT
on/IN
CDs/NNS
./.
For/IN
instance/NN
,/,
a/DT
CD-type/JJ
annuity/NN
from/IN
North/NNP
American/NNP
Co./NNP
for/IN
Life/NNP
&/CC
Health/NNP
Insurance/NNP
,/,
Chicago/NNP
,/,
offers/VBZ
8.8/CD
%/NN
interest/NN
for/IN
one/CD
year/NN
or/CC
a/DT
9/CD
%/NN
rate/NN
for/IN
two/CD
years/NNS
./.
Annuities/NNS
are/VBP
rarely/RB
a/DT
good/JJ
idea/NN
at/IN
age/NN
35/CD
because/IN
of/IN
the/DT
withdrawal/NN
restrictions/NNS
./.
But/CC
at/IN
age/NN
55/CD
,/,
``/``
they/PRP
may/MD
be/VB
a/DT
great/JJ
deal/NN
,/,
''/''
says/VBZ
Mr./NNP
Wilson/NNP
,/,
the/DT
Columbia/NNP
,/,
S.C./NNP
,/,
planner/NN
./.
MONEY/NN
MARKET/NN
FUNDS/NNS
:/:
That/DT
's/VBZ
right/JJ
,/,
money/NN
market/NN
mutual/JJ
funds/NNS
./.
The/DT
conventional/JJ
wisdom/NN
is/VBZ
to/TO
go/VB
into/IN
money/NN
funds/NNS
when/WRB
rates/NNS
are/VBP
rising/VBG
and/CC
shift/VB
out/RB
at/IN
times/NNS
such/JJ
as/IN
the/DT
present/NN
,/,
when/WRB
rates/NNS
seem/VBP
headed/VBN
down/RB
./.
With/IN
average/JJ
maturities/NNS
of/IN
a/DT
month/NN
or/CC
so/RB
,/,
money/NN
funds/NNS
offer/VBP
fixed/JJ
share/NN
prices/NNS
and/CC
floating/VBG
returns/NNS
that/IN
track/VBP
market/NN
interest/NN
rates/NNS
,/,
with/IN
a/DT
slight/JJ
lag/NN
./.
Still/RB
,/,
today/NN
's/POS
highest-yielding/JJ
money/NN
funds/NNS
may/MD
beat/VB
CDs/NNS
over/IN
the/DT
next/JJ
year/NN
even/RB
if/IN
rates/NNS
fall/VBP
,/,
says/VBZ
Guy/NNP
Witman/NNP
,/,
an/DT
editor/NN
of/IN
the/DT
Bond/NNP
Market/NNP
Advisor/NNP
newsletter/NN
in/IN
Atlanta/NNP
./.
That/DT
's/VBZ
because/RB
top-yielding/JJ
funds/NNS
currently/RB
offer/VBP
yields/NNS
almost/RB
1/CD
1\/2/CD
percentage/NN
points/NNS
above/IN
the/DT
average/JJ
CD/NN
yield/NN
./.
Mr./NNP
Witman/NNP
likes/VBZ
the/DT
Dreyfus/NNP
Worldwide/NNP
Dollar/NNP
Money/NNP
Market/NNP
Fund/NNP
,/,
with/IN
a/DT
seven-day/JJ
compound/JJ
yield/NN
just/RB
under/IN
9.5/CD
%/NN
./.
A/DT
new/JJ
fund/NN
,/,
its/PRP$
operating/NN
expenses/NNS
are/VBP
being/VBG
temporarily/RB
subsidized/VBN
by/IN
the/DT
sponsor/NN
./.
Try/VB
combining/VBG
a/DT
money/NN
fund/NN
and/CC
an/DT
intermediate-term/JJ
bond/NN
fund/NN
as/IN
a/DT
low-risk/JJ
bet/NN
on/IN
falling/VBG
rates/NNS
,/,
suggests/VBZ
Back/NNP
Bay/NNP
Advisors/NNP
Inc./NNP
,/,
a/DT
mutual/JJ
fund/NN
unit/NN
of/IN
New/NNP
England/NNP
Insurance/NNP
Co/NNP
./.
If/IN
rates/NNS
unexpectedly/RB
rise/VBP
,/,
the/DT
increasing/VBG
return/NN
on/IN
the/DT
money/NN
fund/NN
will/MD
partly/RB
offset/VB
the/DT
lower-than-expected/JJ
return/NN
from/IN
the/DT
bond/NN
fund/NN
./.
Federal/JJ
drug/NN
regulators/NNS
,/,
concerned/VBN
over/IN
British/JJ
reports/NNS
that/IN
diabetics/NNS
have/VBP
died/VBN
after/IN
shifting/VBG
from/IN
animal/JJ
to/TO
human-based/JJ
insulin/NN
,/,
say/VBP
they/PRP
are/VBP
considering/VBG
a/DT
study/NN
to/TO
see/VB
if/IN
similar/JJ
deaths/NNS
have/VB
occurred/VBN
here/RB
./.
The/DT
United/NNP
Kingdom/NNP
reports/NNS
came/VBD
from/IN
Dr./NNP
Patrick/NNP
Toseland/NNP
,/,
head/NN
of/IN
clinical/JJ
chemistry/NN
at/IN
Guy/NNP
's/POS
Hospital/NNP
in/IN
London/NNP
./.
In/IN
a/DT
telephone/NN
interview/NN
Friday/NNP
,/,
Dr./NNP
Toseland/NNP
said/VBD
the/DT
number/NN
of/IN
sudden/JJ
,/,
unexplained/JJ
deaths/NNS
of/IN
diabetics/NNS
he/PRP
had/VBD
seen/VBN
this/DT
year/NN
was/VBD
17/CD
compared/VBN
with/IN
just/RB
two/CD
in/IN
1985/CD
./.
At/IN
least/JJS
six/CD
of/IN
the/DT
deaths/NNS
occurred/VBD
among/IN
relatively/RB
young/JJ
diabetics/NNS
who/WP
had/VBD
switched/VBN
from/IN
animal/NN
to/TO
human/JJ
insulin/NN
within/IN
the/DT
past/JJ
year/NN
,/,
he/PRP
said/VBD
./.
Dr./NNP
Solomon/NNP
Sobel/NNP
,/,
director/NN
of/IN
metabolism/NN
and/CC
endrocrine/JJ
drug/NN
products/NNS
for/IN
the/DT
U.S./NNP
Food/NNP
and/CC
Drug/NNP
Administration/NNP
,/,
said/VBD
FDA/NNP
officials/NNS
have/VBP
discussed/VBN
Dr./NNP
Toseland/NNP
's/POS
findings/NNS
``/``
fairly/RB
intensively/RB
./.
''/''
While/IN
there/EX
have/VBP
been/VBN
no/DT
reports/NNS
of/IN
similar/JJ
sudden/JJ
unexplained/JJ
deaths/NNS
among/IN
diabetics/NNS
in/IN
the/DT
U.S./NNP
,/,
Dr./NNP
Sobel/NNP
said/VBD
the/DT
FDA/NNP
plans/NNS
to/TO
examine/VB
Dr./NNP
Toseland/NNP
's/POS
evidence/NN
and/CC
is/VBZ
considering/VBG
its/PRP$
own/JJ
study/NN
here/RB
./.
Dr./NNP
Toseland/NNP
,/,
a/DT
toxicologist/NN
,/,
said/VBD
he/PRP
was/VBD
preparing/VBG
an/DT
article/NN
for/IN
a/DT
British/JJ
forensic/JJ
medical/JJ
journal/NN
raising/VBG
the/DT
possibility/NN
that/IN
the/DT
deaths/NNS
may/MD
have/VB
occurred/VBN
after/IN
human/JJ
insulin/NN
blunted/VBD
critical/JJ
warning/NN
signs/NNS
indicating/VBG
hypoglycemia/NN
,/,
or/CC
low/JJ
blood/NN
sugar/NN
,/,
which/WDT
can/MD
kill/VB
diabetics/NNS
./.
The/DT
usual/JJ
warning/NN
signs/NNS
of/IN
hypoglycemia/NN
include/VBP
sweating/NN
,/,
anxiety/NN
and/CC
cramps/NNS
./.
With/IN
proper/JJ
warning/NN
,/,
diabetics/NNS
can/MD
easily/RB
raise/VB
their/PRP$
blood/NN
sugar/NN
to/TO
safe/JJ
levels/NNS
by/IN
eating/VBG
sugar/NN
or/CC
sugary/JJ
food/NN
./.
``/``
The/DT
anecdotal/JJ
data/NN
certainly/RB
shows/VBZ
that/IN
some/DT
of/IN
the/DT
people/NNS
were/VBD
not/RB
aware/JJ
of/IN
the/DT
rapid/JJ
onset/NN
of/IN
hypoglycemia/NN
,/,
''/''
Dr./NNP
Toseland/NNP
said/VBD
./.
At/IN
the/DT
U.S./NNP
National/NNP
Institutes/NNP
of/IN
Health/NNP
,/,
Dr./NNP
Robert/NNP
E./NNP
Silverman/NNP
,/,
chief/NN
of/IN
the/DT
diabetes/NN
program/NN
branch/NN
,/,
said/VBD
no/DT
evidence/NN
of/IN
unexpected/JJ
deaths/NNS
from/IN
hypoglycemia/NN
had/VBD
shown/VBN
up/RP
in/IN
a/DT
study/NN
of/IN
1,500/CD
diabetics/NNS
that/WDT
has/VBZ
been/VBN
under/IN
way/NN
at/IN
NIH/NNP
for/IN
five/CD
years/NNS
./.
However/RB
,/,
he/PRP
said/VBD
officials/NNS
conducting/VBG
the/DT
study/NN
had/VBD
n't/RB
been/VBN
looking/VBG
for/IN
signs/NNS
of/IN
problems/NNS
related/VBN
to/TO
hypoglycemia/NN
unawareness/NN
./.
``/``
We/PRP
are/VBP
now/RB
monitoring/VBG
for/IN
it/PRP
much/RB
more/RBR
closely/RB
,/,
''/''
he/PRP
said/VBD
./.
``/``
We/PRP
do/VBP
know/VB
there/EX
are/VBP
slight/JJ
differences/NNS
in/IN
the/DT
way/NN
human/JJ
and/CC
animal/JJ
insulins/NNS
drive/VBP
down/RP
blood/NN
sugar/NN
,/,
''/''
Dr./NNP
Sobel/NNP
said/VBD
./.
The/DT
human-based/JJ
drug/NN
starts/VBZ
the/DT
blood/NN
sugar/NN
dropping/VBG
sooner/RBR
and/CC
drives/VBZ
it/PRP
down/RP
faster/RBR
,/,
he/PRP
said/VBD
./.
``/``
But/CC
we/PRP
do/VBP
n't/RB
believe/VB
there/EX
is/VBZ
enough/JJ
of/IN
a/DT
difference/NN
to/TO
be/VB
clinically/RB
significant/JJ
,/,
''/''
Dr./NNP
Sobel/NNP
said/VBD
./.
Reports/NNS
of/IN
Dr./NNP
Toseland/NNP
's/POS
findings/NNS
in/IN
the/DT
British/JJ
press/NN
have/VBP
triggered/VBN
widespread/JJ
concern/NN
among/IN
diabetics/NNS
there/RB
./.
Both/DT
the/DT
British/NNP
Diabetic/NNP
Association/NNP
and/CC
the/DT
Committee/NNP
on/IN
Safety/NNP
in/IN
Medicines/NNP
--/:
Britain/NNP
's/POS
equivalent/NN
of/IN
the/DT
U.S./NNP
FDA/NNP
--/:
recently/RB
issued/VBD
statements/NNS
noting/VBG
the/DT
lack/NN
of/IN
hard/JJ
scientific/JJ
evidence/NN
to/TO
support/VB
Dr./NNP
Toseland/NNP
's/POS
findings/NNS
./.
On/IN
Friday/NNP
,/,
the/DT
American/NNP
Diabetes/NNP
Association/NNP
issued/VBD
a/DT
similar/JJ
statement/NN
urging/VBG
the/DT
six/CD
million/CD
U.S./NNP
diabetics/NNS
not/RB
to/TO
overreact/VB
to/TO
the/DT
British/JJ
report/NN
./.
``/``
A/DT
loss/NN
of/IN
the/DT
warning/NN
symptoms/NNS
of/IN
hypoglycemia/NN
is/VBZ
a/DT
complex/JJ
problem/NN
that/WDT
is/VBZ
very/RB
unlikely/JJ
to/TO
be/VB
due/RB
simply/RB
to/TO
the/DT
type/NN
of/IN
insulin/NN
used/VBN
,/,
''/''
the/DT
American/JJ
association/NN
said/VBD
./.
The/DT
FDA/NNP
already/RB
requires/VBZ
drug/NN
manufacturers/NNS
to/TO
include/VB
warnings/NNS
with/IN
insulin/NN
products/NNS
that/IN
symptoms/NNS
of/IN
hypoglycemia/NN
are/VBP
less/RBR
pronounced/JJ
with/IN
human/JJ
insulin/NN
than/IN
with/IN
animal-based/JJ
products/NNS
./.
Eli/NNP
Lilly/NNP
&/CC
Co./NNP
,/,
the/DT
Indianapolis-based/JJ
drug/NN
manufacturer/NN
,/,
dominates/VBZ
the/DT
U.S./NNP
human/JJ
insulin/NN
market/NN
with/IN
its/PRP$
product/NN
known/VBN
as/IN
Humulin/NNP
./.
Lilly/NNP
is/VBZ
building/VBG
plants/NNS
to/TO
make/VB
the/DT
insulin/NN
in/IN
Indianapolis/NNP
and/CC
Fagershein/NNP
,/,
France/NNP
./.
In/IN
its/PRP$
latest/JJS
annual/JJ
report/NN
,/,
Lilly/NNP
said/VBD
Humulin/NNP
sales/NNS
have/VBP
shown/VBN
``/``
excellent/JJ
growth/NN
./.
''/''
Lilly/NNP
officials/NNS
said/VBD
they/PRP
had/VBD
seen/VBN
reports/NNS
of/IN
hypoglycemic/JJ
unawareness/NN
among/IN
some/DT
patients/NNS
making/VBG
the/DT
shift/NN
from/IN
animal/JJ
to/TO
human/JJ
insulin/NN
,/,
but/CC
did/VBD
n't/RB
know/VB
if/IN
the/DT
problem/NN
had/VBD
caused/VBN
any/DT
deaths/NNS
./.
Dr./NNP
Leigh/NNP
Thompson/NNP
,/,
a/DT
Lilly/NNP
group/NN
vice/NN
president/NN
,/,
said/VBD
the/DT
company/NN
's/POS
clinical/JJ
trials/NNS
of/IN
both/CC
its/PRP$
animal/JJ
and/CC
human-based/JJ
insulins/NNS
indicated/VBD
no/DT
difference/NN
in/IN
the/DT
level/NN
of/IN
hypoglycemia/NN
between/IN
users/NNS
of/IN
either/DT
product/NN
./.
Dr./NNP
Toseland/NNP
said/VBD
most/JJS
of/IN
the/DT
British/JJ
diabetics/NNS
who/WP
died/VBD
had/VBD
been/VBN
taking/VBG
a/DT
human-based/JJ
insulin/NN
made/VBN
by/IN
Novo\/Nordisk/NNP
,/,
a/DT
Danish/JJ
manufacturer/NN
./.
None/NN
of/IN
the/DT
diabetics/NNS
were/VBD
using/VBG
Lilly/NNP
's/POS
insulin/NN
./.
SharesBase/NNP
Corp./NNP
said/VBD
it/PRP
will/MD
reduce/VB
its/PRP$
221-person/JJ
work/NN
force/NN
by/IN
about/RB
25/CD
%/NN
,/,
effective/JJ
tomorrow/NN
,/,
in/IN
an/DT
effort/NN
to/TO
stem/VB
continuing/VBG
losses/NNS
./.
The/DT
company/NN
,/,
which/WDT
makes/VBZ
data/NN
base/NN
systems/NNS
and/CC
software/NN
,/,
said/VBD
it/PRP
expects/VBZ
to/TO
report/VB
a/DT
loss/NN
for/IN
the/DT
third/JJ
quarter/NN
ended/VBD
Sept./NNP
30/CD
./.
Defense/NN
intellectuals/NNS
have/VBP
complained/VBN
for/IN
years/NNS
that/IN
the/DT
Pentagon/NNP
can/MD
not/RB
determine/VB
priorities/NNS
because/IN
it/PRP
has/VBZ
no/DT
strategy/NN
./.
Last/JJ
April/NNP
,/,
the/DT
new/JJ
defense/NN
secretary/NN
,/,
Richard/NNP
Cheney/NNP
,/,
acknowledged/VBD
that/IN
,/,
``/``
given/VBN
an/DT
ideal/JJ
world/NN
,/,
we/PRP
'd/MD
have/VB
a/DT
nice/JJ
,/,
neat/JJ
,/,
orderly/JJ
process/NN
./.
We/PRP
'd/MD
do/VB
the/DT
strategy/NN
and/CC
then/RB
we/PRP
'd/MD
come/VB
around/RB
and/CC
do/VB
the/DT
budget/NN
./.
This/DT
city/NN
does/VBZ
n't/RB
work/VB
that/DT
way/NN
./.
''/''
With/IN
a/DT
five-year/JJ
defense/NN
plan/NN
costing/VBG
more/JJR
than/IN
$/$
1.6/CD
trillion/CD
,/,
it/PRP
's/VBZ
about/RB
time/NN
we/PRP
put/VBP|VB
together/RB
a/DT
defense/NN
strategy/NN
that/WDT
works/VBZ
in/IN
Washington/NNP
./.
This/DT
wo/MD
n't/RB
happen/VB
until/IN
strategists/NNS
come/VBP
down/IN
from/IN
their/PRP$
ivory/NN
tower/NN
and/CC
learn/VB
to/TO
work/VB
in/IN
the/DT
real/JJ
world/NN
of/IN
limited/JJ
budgets/NNS
and/CC
uncertain/JJ
futures/NNS
./.
As/IN
it/PRP
is/VBZ
,/,
we/PRP
identify/VBP
national/JJ
goals/NNS
and/CC
the/DT
threats/NNS
to/TO
these/DT
goals/NNS
,/,
we/PRP
shape/VBP
a/DT
strategy/NN
to/TO
counter/VB
these/DT
threats/NNS
,/,
we/PRP
determine/VBP
the/DT
forces/NNS
needed/VBN
to/TO
execute/VB
the/DT
strategy/NN
,/,
before/IN
finally/RB
forging/VBG
the/DT
budgets/NNS
needed/VBN
to/TO
build/VB
and/CC
maintain/VB
the/DT
forces/NNS
./.
These/DT
procedures/NNS
consume/VBP
millions/NNS
of/IN
man-hours/NN
of/IN
labor/NN
and/CC
produce/VB
tons/NNS
of/IN
paper/NN
,/,
and/CC
each/DT
year/NN
,/,
their/PRP$
end/JJ
product/NN
--/:
the/DT
Five/CD
Year/NN
Defense/NN
Plan/NN
--/:
promptly/RB
melts/VBZ
away/RB
./.
The/DT
graph/NN
on/IN
the/DT
left/NN
shows/VBZ
how/WRB
this/DT
happens/VBZ
(/(
see/VB
accompanying/VBG
illustration/NN
--/:
WSJ/NNP
Oct./NNP
30/CD
,/,
1989/CD
Compare/VB
the/DT
past/JJ
eight/CD
five-year/JJ
plans/NNS
with/IN
actual/JJ
appropriations/NNS
./.
The/DT
Pentagon/NNP
's/POS
strategists/NNS
produce/VBP
budgets/NNS
that/WDT
simply/RB
can/MD
not/RB
be/VB
executed/VBN
because/IN
they/PRP
assume/VBP
a/DT
defense/NN
strategy/NN
depends/VBZ
only/RB
on/IN
goals/NNS
and/CC
threats/NNS
./.
Strategy/NN
,/,
however/RB
,/,
is/VBZ
about/IN
possibilities/NNS
,/,
not/RB
hopes/NNS
and/CC
dreams/NNS
./.
By/IN
ignoring/VBG
costs/NNS
,/,
U.S./NNP
strategists/NNS
abdicate/VBP
their/PRP$
responsibility/NN
for/IN
hard/JJ
decisions/NNS
./.
That/DT
puts/VBZ
the/DT
real/JJ
strategic/JJ
decisions/NNS
in/IN
the/DT
hands/NNS
of/IN
others/NNS
:/:
bean/NN
counters/NNS
,/,
budgeteers/NNS
,/,
and/CC
pork-barrelers/NNS
./.
These/DT
people/NNS
have/VBP
different/JJ
agendas/NNS
./.
And/CC
as/IN
a/DT
result/NN
--/:
as/IN
the/DT
recent/JJ
vote/NN
by/IN
the/DT
House/NNP
to/TO
undo/VB
Mr./NNP
Cheney/NNP
's/POS
program/NN
terminations/NNS
suggests/VBZ
--/:
the/DT
preservation/NN
of/IN
jobs/NNS
is/VBZ
becoming/VBG
the/DT
real/JJ
goal/NN
of/IN
defense/NN
``/``
strategy/NN
./.
''/''
How/WRB
can/MD
we/PRP
turn/VB
this/DT
situation/NN
around/RB
?/.
Reform/NN
starts/VBZ
in/IN
the/DT
Pentagon/NNP
./.
Strategists/NNS
should/MD
consider/VB
the/DT
impact/NN
of/IN
budget/NN
uncertainties/NNS
at/IN
the/DT
beginning/NN
of/IN
the/DT
planning/NN
process/NN
./.
They/PRP
ought/MD
to/TO
examine/VB
how/WRB
a/DT
range/NN
of/IN
optimistic/JJ
to/TO
pessimistic/JJ
budget/NN
scenarios/NNS
would/MD
change/VB
the/DT
defense/NN
program/NN
./.
They/PRP
would/MD
then/RB
develop/VB
priorities/NNS
by/IN
identifying/VBG
the/DT
least/JJS
painful/JJ
program/NN
cuts/NNS
as/IN
they/PRP
moved/VBD
from/IN
higher/JJR
to/TO
lower/JJR
budgets/NNS
./.
They/PRP
would/MD
also/RB
identify/VB
the/DT
best/JJS
way/NN
to/TO
add/VB
programs/NNS
,/,
should/MD
the/DT
budget/NN
come/VB
in/IN
at/IN
higher/JJR
levels/NNS
./.
This/DT
kind/NN
of/IN
contingency/NN
analysis/NN
is/VBZ
common/JJ
in/IN
war/NN
planning/NN
and/CC
business/NN
planning/NN
./.
There/EX
is/VBZ
no/DT
reason/NN
that/IN
it/PRP
can/MD
not/RB
be/VB
done/VBN
for/IN
defense/NN
planning/NN
./.
Two/CD
steps/NNS
are/VBP
necessary/JJ
to/TO
translate/VB
this/DT
idea/NN
into/IN
action/NN
./.
Step/NN
1/CD
cleans/VBZ
up/RP
our/PRP$
books/NNS
./.
Our/PRP$
five-year/JJ
plan/NN
contains/VBZ
three/CD
accounting/NN
devices/NNS
--/:
negative/JJ
money/NN
,/,
an/DT
above/JJ
guidance/NN
management/NN
reserve/NN
and/CC
optimistic/JJ
inflation/NN
estimates/NNS
--/:
which/WDT
understate/VBP
the/DT
spending/NN
the/DT
Pentagon/NNP
has/VBZ
committed/VBN
itself/PRP
to/TO
by/IN
almost/RB
$/$
100/CD
billion/CD
./.
Negative/JJ
money/NN
was/VBD
invented/VBN
in/IN
1988/CD
to/TO
make/VB
the/DT
1990-94/CD
Five/CD
Year/NN
Defense/NN
Plan/NN
conform/VB
to/TO
the/DT
numbers/NNS
in/IN
President/NNP
Reagan/NNP
's/POS
final/JJ
budget/NN
submission/NN
to/TO
Congress/NNP
./.
That/DT
plan/NN
exceeded/VBD
the/DT
numbers/NNS
contained/VBN
in/IN
his/PRP$
budget/NN
message/NN
by/IN
$/$
45/CD
billion/CD
./.
To/TO
make/VB
the/DT
books/NNS
balance/VB
,/,
as/IN
is/VBZ
required/VBN
by/IN
law/NN
,/,
somebody/NN
invented/VBD
a/DT
new/JJ
budget/NN
line/NN
item/NN
that/WDT
simply/RB
subtracted/VBD
$/$
45/CD
billion/CD
./.
It/PRP
is/VBZ
known/VBN
in/IN
the/DT
Pentagon/NNP
as/IN
the/DT
``/``
negative/JJ
wedge/NN
./.
''/''
The/DT
Pentagon/NNP
argues/VBZ
that/IN
the/DT
negative/JJ
wedge/NN
is/VBZ
the/DT
net/JJ
effect/NN
of/IN
$/$
22/CD
billion/CD
in/IN
the/DT
as-yet/RB
unidentified/JJ
procurement/NN
reductions/NNS
that/WDT
it/PRP
intends/VBZ
to/TO
find/VB
in/IN
future/JJ
years/NNS
and/CC
$/$
23/CD
billion/CD
in/IN
an/DT
``/``
above/JJ
guidance/NN
''/''
management/NN
reserve/NN
that/WDT
accounts/VBZ
for/IN
undefined/JJ
programs/NNS
that/WDT
will/MD
materialize/VB
in/IN
the/DT
future/NN
./.
The/DT
1990/CD
plan/NN
also/RB
assumes/VBZ
inflation/NN
will/MD
decline/VB
to/TO
1.7/CD
%/NN
by/IN
1994/CD
./.
Most/JJS
forecasters/NNS
,/,
including/VBG
those/DT
in/IN
the/DT
Congressional/NNP
Budget/NNP
Office/NNP
,/,
assume/VBP
inflation/NN
will/MD
be/VB
in/IN
excess/NN
of/IN
4/CD
%/NN
in/IN
each/DT
of/IN
those/DT
five/CD
years/NNS
./.
At/IN
that/DT
rate/NN
,/,
the/DT
defense/NN
plan/NN
is/VBZ
underfunded/VBN
by/IN
$/$
48/CD
billion/CD
./.
By/IN
adding/VBG
the/DT
negative/JJ
wedge/NN
and/CC
recalculating/VBG
the/DT
remaining/VBG
program/NN
using/VBG
a/DT
more/RBR
probable/JJ
inflation/NN
estimate/NN
,/,
we/PRP
arrive/VBP
at/IN
a/DT
baseline/JJ
program/NN
costing/VBG
$/$
1.7/CD
trillion/CD
between/IN
1990/CD
and/CC
1994/CD
./.
Step/NN
2/CD
examines/VBZ
how/WRB
four/CD
progressively/RB
lower/JJR
budget/NN
scenarios/NNS
would/MD
change/VB
the/DT
baseline/NN
and/CC
how/WRB
these/DT
changes/NNS
would/MD
affect/VB
our/PRP$
national/JJ
security/NN
./.
The/DT
graph/NN
on/IN
the/DT
right/NN
which/WDT
assumes/VBZ
a/DT
4/CD
%/NN
rate/NN
of/IN
inflation/NN
these/DT
scenarios/NNS
in/IN
the/DT
context/NN
of/IN
recent/JJ
appropriations/NNS
accompanying/VBG
illustration/NN
--/:
WSJ/NNP
Oct./NNP
30/CD
,/,
1989/CD
Note/VB
how/WRB
the/DT
baseline/NN
program/NN
assumes/VBZ
a/DT
sharp/JJ
increase/NN
in/IN
future/JJ
appropriations/NNS
./.
Step/NN
2/CD
will/MD
answer/VB
the/DT
question/NN
:/:
What/WP
happens/VBZ
if/IN
these/DT
increases/NNS
do/VBP
not/RB
materialize/VB
?/.
Scenario/NN
1/CD
,/,
known/VBN
as/IN
the/DT
``/``
Constant/JJ
Dollar/NN
Freeze/NN
,/,
''/''
reimburses/VBZ
the/DT
Pentagon/NNP
for/IN
inflation/NN
only/RB
--/:
it/PRP
slopes/VBZ
upward/RB
at/IN
4/CD
%/NN
per/IN
year/NN
./.
This/DT
scenario/NN
has/VBZ
been/VBN
the/DT
rough/JJ
position/NN
of/IN
the/DT
U.S./NNP
Senate/NNP
since/IN
1985/CD
,/,
and/CC
it/PRP
reduces/VBZ
the/DT
baseline/NN
by/IN
$/$
106/CD
billion/CD
between/IN
1990/CD
and/CC
1994/CD
./.
Scenario/NN
3/CD
,/,
the/DT
``/``
Current/JJ
Dollar/NN
Freeze/NN
,/,
''/''
has/VBZ
been/VBN
the/DT
approximate/JJ
position/NN
of/IN
the/DT
House/NNP
of/IN
Representatives/NNP
for/IN
about/RB
four/CD
years/NNS
./.
It/PRP
freezes/VBZ
the/DT
budget/NN
at/IN
its/PRP$
current/JJ
level/NN
,/,
and/CC
forces/VBZ
the/DT
Pentagon/NNP
to/TO
eat/VB
the/DT
effects/NNS
of/IN
inflation/NN
until/IN
1994/CD
./.
This/DT
reduces/VBZ
the/DT
baseline/NN
by/IN
$/$
229/CD
billion/CD
./.
Scenario/NN
2/CD
extends/VBZ
the/DT
recent/JJ
compromises/NNS
between/IN
the/DT
House/NNP
and/CC
the/DT
Senate/NNP
;/:
it/PRP
splits/VBZ
the/DT
difference/NN
between/IN
Scenarios/NNS
1/CD
and/CC
3/CD
,/,
by/IN
increasing/VBG
the/DT
budget/NN
at/IN
2/CD
%/NN
per/IN
year/NN
./.
It/PRP
reduces/VBZ
the/DT
baseline/NN
by/IN
$/$
169/CD
billion/CD
./.
Finally/RB
,/,
Scenario/NN
4/CD
reduces/VBZ
the/DT
budget/NN
by/IN
2/CD
%/NN
per/IN
year/NN
for/IN
the/DT
next/JJ
five/CD
years/NNS
--/:
a/DT
total/JJ
reduction/NN
of/IN
$/$
287/CD
billion/CD
./.
This/DT
can/MD
be/VB
thought/VBN
of/IN
as/IN
a/DT
pessimistic/JJ
prediction/NN
,/,
perhaps/RB
driven/VBN
by/IN
the/DT
sequestering/NN
effects/NNS
of/IN
the/DT
Gramm-Rudman/NNP
deficit/NN
reduction/NN
law/NN
or/CC
possibly/RB
a/DT
relaxation/NN
of/IN
tensions/NNS
with/IN
the/DT
Soviet/NNP
Union/NNP
./.
The/DT
strategic/JJ
planners/NNS
in/IN
the/DT
Joint/NNP
Chiefs/NNPS
of/IN
Staff/NNP
would/MD
construct/VB
the/DT
most/RBS
effective/JJ
defense/NN
program/NN
for/IN
each/DT
scenario/NN
,/,
maximizing/VBG
strengths/NNS
and/CC
minimizing/VBG
weaknesses/NNS
./.
They/PRP
would/MD
conclude/VB
their/PRP$
efforts/NNS
by/IN
producing/VBG
a/DT
comprehensive/JJ
net/NN
assessment/NN
for/IN
each/DT
plan/NN
--/:
including/VBG
the/DT
assumptions/NNS
made/VBN
,/,
an/DT
analysis/NN
of/IN
its/PRP$
deficiencies/NNS
and/CC
limitations/NNS
,/,
the/DT
impact/NN
on/IN
national/JJ
security/NN
,/,
and/CC
the/DT
best/JJS
strategy/NN
for/IN
working/VBG
around/IN
these/DT
limitations/NNS
./.
This/DT
exercise/NN
would/MD
reveal/VB
the/DT
true/JJ
cost/NN
of/IN
a/DT
particular/JJ
program/NN
by/IN
forcing/VBG
the/DT
strategists/NNS
to/TO
make/VB
hard/JJ
decisions/NNS
./.
If/IN
,/,
for/IN
example/NN
,/,
they/PRP
choose/VBP
to/TO
keep/VB
the/DT
B-2/NNP
Stealth/NNP
bomber/NN
,/,
they/PRP
would/MD
have/VB
to/TO
sacrifice/VB
more/JJR
and/CC
more/JJR
other/JJ
programs/NNS
--/:
such/JJ
as/IN
carrier/NN
battlegroups/NNS
or/CC
army/NN
divisions/NNS
--/:
as/IN
they/PRP
moved/VBD
toward/IN
lower/JJR
budget/NN
levels/NNS
./.
These/DT
trade-offs/NNS
would/MD
evolve/VB
priorities/NNS
by/IN
revealing/VBG
when/WRB
the/DT
cost/NN
of/IN
the/DT
B-2/NNP
became/VBD
prohibitive/JJ
./.
Some/DT
may/MD
be/VB
tempted/VBN
to/TO
argue/VB
that/IN
the/DT
idea/NN
of/IN
a/DT
strategic/JJ
review/NN
merely/RB
resurrects/VBZ
the/DT
infamous/JJ
Zero-Based/NNP
Budgeting/NNP
ZBB/NNP
concept/NN
of/IN
the/DT
Carter/NNP
administration/NN
./.
But/CC
ZBB/NNP
did/VBD
not/RB
involve/VB
the/DT
strategic/JJ
planners/NNS
in/IN
the/DT
Joint/NNP
Chiefs/NNPS
of/IN
Staff/NNP
,/,
and/CC
therefore/RB
degenerated/VBD
into/IN
a/DT
bean-counting/NN
drill/NN
driven/VBN
by/IN
budget/NN
politics/NNS
./.
Anyway/RB
,/,
ZBB/NNP
's/POS
procedures/NNS
were/VBD
so/RB
cumbersome/JJ
that/IN
everyone/NN
involved/VBN
was/VBD
crushed/VBN
under/IN
a/DT
burden/NN
of/IN
marginalia/NNS
./.
A/DT
strategic/JJ
review/NN
is/VBZ
fundamentally/RB
different/JJ
./.
It/PRP
would/MD
be/VB
run/VBN
by/IN
the/DT
joint/JJ
chiefs/NNS
under/IN
simple/JJ
directions/NNS
:/:
Produce/VB
the/DT
best/JJS
possible/JJ
force/NN
for/IN
each/DT
budget/NN
scenario/NN
and/CC
provide/VB
the/DT
Secretary/NNP
of/IN
Defense/NNP
with/IN
a/DT
comprehensive/JJ
net/JJ
assessment/NN
of/IN
how/WRB
that/DT
force/NN
could/MD
be/VB
used/VBN
to/TO
achieve/VB
U.S./NNP
goals/NNS
./.
It/PRP
might/MD
be/VB
feared/VBN
that/IN
even/RB
thinking/VBG
about/IN
lower/JJR
budgets/NNS
will/MD
hurt/VB
national/JJ
security/NN
because/IN
the/DT
door/NN
will/MD
be/VB
opened/VBN
to/TO
opportunistic/JJ
budget/NN
cutting/NN
by/IN
an/DT
irresponsible/JJ
Congress/NNP
./.
This/DT
argument/NN
plays/VBZ
well/RB
in/IN
the/DT
atmosphere/NN
of/IN
gaming/NN
and/CC
mistrust/NN
permeating/VBG
the/DT
Pentagon/NNP
and/CC
Congress/NNP
,/,
and/CC
unfortunately/RB
,/,
there/EX
is/VBZ
some/DT
truth/NN
to/TO
it/PRP
./.
But/CC
in/IN
the/DT
end/NN
,/,
it/PRP
must/MD
be/VB
rejected/VBN
for/IN
logical/JJ
as/RB
well/RB
as/IN
moral/JJ
reasons/NNS
./.
To/TO
say/VB
that/IN
the/DT
Pentagon/NNP
should/MD
act/VB
irresponsibly/RB
because/IN
acting/VBG
responsibly/RB
will/MD
provoke/VB
Congress/NNP
into/IN
acting/VBG
irresponsibly/RB
leads/VBZ
to/TO
the/DT
conclusion/NN
that/IN
the/DT
Pentagon/NNP
should/MD
deliberately/RB
exaggerate/VB
its/PRP$
needs/NNS
in/IN
the/DT
national/JJ
interest/NN
;/:
in/IN
other/JJ
words/NNS
,/,
that/IN
it/PRP
is/VBZ
justified/JJ
in/IN
committing/VBG
a/DT
crime/NN
--/:
lying/VBG
to/TO
Congress/NNP
--/:
because/IN
it/PRP
is/VBZ
morally/RB
superior/JJ
./.
Strategy/NNP
is/VBZ
not/RB
a/DT
game/NN
between/IN
the/DT
Pentagon/NNP
and/CC
Congress/NNP
;/:
it/PRP
is/VBZ
the/DT
art/NN
of/IN
the/DT
possible/JJ
in/IN
a/DT
world/NN
where/WRB
constraints/NNS
force/VBP
us/PRP
to/TO
choose/VB
between/IN
unpleasant/JJ
or/CC
imperfect/JJ
alternatives/NNS
./.
If/IN
we/PRP
want/VBP
meaningful/JJ
priorities/NNS
,/,
we/PRP
must/MD
understand/VB
the/DT
trade-offs/NN
they/PRP
imply/VBP
before/IN
we/PRP
make/VBP
commitments/NNS
./.
Strategy/NN
is/VBZ
not/RB
a/DT
separate/JJ
event/NN
in/IN
an/DT
idealized/JJ
sequence/NN
of/IN
discrete/JJ
events/NNS
;/:
it/PRP
is/VBZ
a/DT
way/NN
of/IN
thinking/NN
that/WDT
neutralizes/VBZ
threats/NNS
to/TO
our/PRP$
interests/NNS
in/IN
a/DT
manner/NN
consistent/JJ
with/IN
our/PRP$
financial/JJ
,/,
cultural/JJ
and/CC
physical/JJ
limitations/NNS
./.
Mr./NNP
Spinney/NNP
is/VBZ
a/DT
permanent/JJ
Pentagon/NNP
official/NN
./.
This/DT
is/VBZ
a/DT
condensed/JJ
version/NN
of/IN
an/DT
essay/NN
that/WDT
will/MD
appear/VB
in/IN
the/DT
January/NNP
issue/NN
of/IN
the/DT
Naval/NNP
Institute/NNP
Proceedings/NNP
./.
The/DT
views/NNS
expressed/VBN
do/VB
not/RB
reflect/VB
the/DT
official/JJ
policy/NN
of/IN
the/DT
Department/NNP
of/IN
Defense/NNP
./.
Although/IN
bullish/JJ
dollar/NN
sentiment/NN
has/VBZ
fizzled/VBN
,/,
many/JJ
currency/NN
analysts/NNS
say/VBP
a/DT
massive/JJ
sell-off/NN
probably/RB
wo/MD
n't/RB
occur/VB
in/IN
the/DT
near/JJ
future/NN
./.
While/IN
Wall/NNP
Street/NNP
's/POS
tough/JJ
times/NNS
and/CC
lower/JJR
U.S./NNP
interest/NN
rates/NNS
continue/VBP
to/TO
undermine/VB
the/DT
dollar/NN
,/,
weakness/NN
in/IN
the/DT
pound/NN
and/CC
the/DT
yen/NN
is/VBZ
expected/VBN
to/TO
offset/VB
those/DT
factors/NNS
./.
``/``
By/IN
default/NN
,/,
''/''
the/DT
dollar/NN
probably/RB
will/MD
be/VB
able/JJ
to/TO
hold/VB
up/RP
pretty/RB
well/RB
in/IN
coming/JJ
days/NNS
,/,
says/VBZ
Francoise/NNP
Soares-Kemp/NNP
,/,
a/DT
foreign-exchange/JJ
adviser/NN
at/IN
Credit/NNP
Suisse/NNP
./.
``/``
We/PRP
're/VBP
close/RB
to/TO
the/DT
bottom/NN
''/''
of/IN
the/DT
near-term/JJ
ranges/NNS
,/,
she/PRP
contends/VBZ
./.
In/IN
late/JJ
Friday/NNP
afternoon/NN
New/NNP
York/NNP
trading/NN
,/,
the/DT
dollar/NN
was/VBD
at/IN
1.8300/CD
marks/NNS
and/CC
141.65/CD
yen/NNS
,/,
off/RB
from/IN
late/JJ
Thursday/NNP
's/POS
1.8400/CD
marks/NNS
and/CC
142.10/CD
yen/NNS
./.
The/DT
pound/NN
strengthened/VBD
to/TO
$/$
1.5795/CD
from/IN
$/$
1.5765/CD
./.
In/IN
Tokyo/NNP
Monday/NNP
,/,
the/DT
U.S./NNP
currency/NN
opened/VBD
for/IN
trading/VBG|NN
at/IN
141.70/CD
yen/NNS
,/,
down/IN
from/IN
Friday/NNP
's/POS
Tokyo/NNP
close/NN
of/IN
142.75/CD
yen/NNS
./.
The/DT
dollar/NN
began/VBD
Friday/NNP
on/IN
a/DT
firm/NN
note/NN
,/,
gaining/VBG
against/IN
all/DT
major/JJ
currencies/NNS
in/IN
Tokyo/NNP
dealings/NNS
and/CC
early/JJ
European/JJ
trading/NN
despite/IN
reports/NNS
that/IN
the/DT
Bank/NNP
of/IN
Japan/NNP
was/VBD
seen/VBN
unloading/VBG
dollars/NNS
around/RB
142.70/CD
yen/NNS
./.
The/DT
rise/NN
came/VBD
as/IN
traders/NNS
continued/VBD
to/TO
dump/VB
the/DT
pound/NN
after/IN
the/DT
sudden/JJ
resignation/NN
Thursday/NNP
of/IN
British/NNP
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
Nigel/NNP
Lawson/NNP
./.
But/CC
once/RB
the/DT
pound/NN
steadied/VBD
with/IN
help/NN
from/IN
purchases/NNS
by/IN
the/DT
Bank/NNP
of/IN
England/NNP
and/CC
the/DT
Federal/NNP
Reserve/NNP
Bank/NNP
of/IN
New/NNP
York/NNP
,/,
the/DT
dollar/NN
was/VBD
dragged/VBN
down/RP
,/,
traders/NNS
say/VBP
,/,
by/IN
the/DT
stock-market/JJ
slump/NN
that/WDT
left/VBD
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
with/IN
a/DT
loss/NN
of/IN
17.01/CD
points/NNS
./.
With/IN
the/DT
stock/NN
market/NN
wobbly/JJ
and/CC
dollar/NN
buyers/NNS
discouraged/VBN
by/IN
signs/NNS
of/IN
U.S./NNP
economic/JJ
weakness/NN
and/CC
the/DT
recent/JJ
decline/NN
in/IN
U.S./NNP
interest/NN
rates/NNS
that/WDT
has/VBZ
diminished/VBN
the/DT
attractiveness/NN
of/IN
dollar-denominated/JJ
investments/NNS
,/,
traders/NNS
say/VBP
the/DT
dollar/NN
is/VBZ
still/RB
in/IN
a/DT
precarious/JJ
position/NN
./.
``/``
They/PRP
'll/MD
be/VB
looking/VBG
at/IN
levels/NNS
to/TO
sell/VB
the/DT
dollar/NN
,/,
''/''
says/VBZ
James/NNP
Scalfaro/NNP
,/,
a/DT
foreign-exchange/JJ
marketing/NN
representative/NN
at/IN
Bank/NNP
of/IN
Montreal/NNP
./.
While/IN
some/DT
analysts/NNS
say/VBP
the/DT
dollar/NN
eventually/RB
could/MD
test/VB
support/NN
at/IN
1.75/CD
marks/NNS
and/CC
135/CD
yen/NNS
,/,
Mr./NNP
Scalfaro/NNP
and/CC
others/NNS
do/VBP
n't/RB
see/VB
the/DT
currency/NN
decisively/RB
sliding/VBG
under/IN
support/NN
at/IN
1.80/CD
marks/NNS
and/CC
140/CD
yen/NNS
soon/RB
./.
Predictions/NNS
for/IN
limited/JJ
dollar/NN
losses/NNS
are/VBP
based/VBN
largely/RB
on/IN
the/DT
pound/NN
's/POS
weak/JJ
state/NN
after/IN
Mr./NNP
Lawson/NNP
's/POS
resignation/NN
and/CC
the/DT
yen/NN
's/POS
inability/NN
to/TO
strengthen/VB
substantially/RB
when/WRB
there/EX
are/VBP
dollar/NN
retreats/NNS
./.
With/IN
the/DT
pound/NN
and/CC
the/DT
yen/NN
lagging/VBG
behind/IN
other/JJ
major/JJ
currencies/NNS
,/,
``/``
you/PRP
do/VBP
n't/RB
have/VB
a/DT
confirmation/NN
''/''
that/IN
a/DT
sharp/JJ
dollar/NN
downturn/NN
is/VBZ
in/IN
the/DT
works/NNS
,/,
says/VBZ
Mike/NNP
Malpede/NNP
,/,
senior/JJ
currency/NN
analyst/NN
at/IN
Refco/NNP
Inc./NNP
in/IN
Chicago/NNP
./.
As/RB
far/RB
as/IN
the/DT
pound/NN
goes/VBZ
,/,
some/DT
traders/NNS
say/VB
a/DT
slide/NN
toward/IN
support/NN
at/IN
$/$
1.5500/CD
may/MD
be/VB
a/DT
favorable/JJ
development/NN
for/IN
the/DT
dollar/NN
this/DT
week/NN
./.
While/IN
the/DT
pound/NN
has/VBZ
attempted/VBN
to/TO
stabilize/VB
,/,
currency/NN
analysts/NNS
say/VBP
it/PRP
is/VBZ
in/IN
critical/JJ
condition/NN
./.
Sterling/NN
plunged/VBD
about/RB
four/CD
cents/NNS
Thursday/NNP
and/CC
hit/VBD
the/DT
week/NN
's/POS
low/NN
of/IN
$/$
1.5765/CD
when/WRB
Mr./NNP
Lawson/NNP
resigned/VBD
from/IN
his/PRP$
six-year/JJ
post/NN
because/IN
of/IN
a/DT
policy/NN
squabble/NN
with/IN
other/JJ
cabinet/NN
members/NNS
./.
He/PRP
was/VBD
succeeded/VBN
by/IN
John/NNP
Major/NNP
,/,
who/WP
Friday/NNP
expressed/VBD
a/DT
desire/NN
for/IN
a/DT
firm/JJ
pound/NN
and/CC
supported/VBD
the/DT
relatively/RB
high/JJ
British/JJ
interest/NN
rates/NNS
that/IN
he/PRP
said/VBD
``/``
are/VBP
working/VBG
exactly/RB
as/RB
intended/VBN
''/''
in/IN
reducing/VBG
inflation/NN
./.
But/CC
the/DT
market/NN
remains/VBZ
uneasy/JJ
about/IN
Mr./NNP
Major/NNP
's/POS
policy/NN
strategy/NN
and/CC
the/DT
prospects/NNS
for/IN
the/DT
pound/NN
,/,
currency/NN
analysts/NNS
contend/VBP
./.
Although/IN
the/DT
Bank/NNP
of/IN
England/NNP
's/POS
tight/JJ
monetary/JJ
policy/NN
has/VBZ
fueled/VBN
worries/NNS
that/IN
Britain/NNP
's/POS
slowing/VBG
economy/NN
is/VBZ
headed/VBN
for/IN
a/DT
recession/NN
,/,
it/PRP
is/VBZ
widely/RB
believed/VBN
that/IN
Mr./NNP
Lawson/NNP
's/POS
willingness/NN
to/TO
prop/VB
up/RP
the/DT
pound/NN
with/IN
interest-rate/JJ
increases/NNS
helped/VBD
stem/NN
pound/NN
selling/NN
in/IN
recent/JJ
weeks/NNS
./.
If/IN
there/EX
are/VBP
any/DT
signs/NNS
that/IN
Mr./NNP
Major/NNP
will/MD
be/VB
less/RBR
inclined/JJ
to/TO
use/VB
interest-rate/JJ
boosts/NNS
to/TO
rescue/VB
the/DT
pound/NN
from/IN
another/DT
plunge/NN
,/,
that/DT
currency/NN
is/VBZ
expected/VBN
to/TO
fall/VB
sharply/RB
./.
``/``
It/PRP
's/VBZ
fair/JJ
to/TO
say/VB
there/EX
are/VBP
more/JJR
risks/NNS
for/IN
the/DT
pound/NN
under/IN
Major/JJ
than/IN
there/EX
were/VBD
under/IN
Lawson/NNP
,/,
''/''
says/VBZ
Malcolm/NNP
Roberts/NNP
,/,
a/DT
director/NN
of/IN
international/JJ
bond/NN
market/NN
research/NN
at/IN
Salomon/NNP
Brothers/NNP
in/IN
London/NNP
./.
``/``
There/EX
's/VBZ
very/RB
little/JJ
upside/NN
to/TO
sterling/NN
,/,
''/''
Mr./NNP
Roberts/NNP
says/VBZ
,/,
but/CC
he/PRP
adds/VBZ
that/IN
near-term/JJ
losses/NNS
may/MD
be/VB
small/JJ
because/IN
the/DT
selling/NN
wave/NN
that/WDT
followed/VBD
Mr./NNP
Major/NNP
's/POS
appointment/NN
apparently/RB
has/VBZ
run/VBN
its/PRP$
course/NN
./.
But/CC
some/DT
other/JJ
analysts/NNS
have/VBP
a/DT
stormier/JJR
forecast/NN
for/IN
the/DT
pound/NN
,/,
particularly/RB
because/IN
Britain/NNP
's/POS
inflation/NN
is/VBZ
hovering/VBG
at/IN
a/DT
relatively/RB
lofty/JJ
annual/JJ
rate/NN
of/IN
about/RB
7.6/CD
%/NN
and/CC
the/DT
nation/NN
is/VBZ
burdened/VBN
with/IN
a/DT
struggling/VBG
government/NN
and/CC
large/JJ
current/JJ
account/NN
and/CC
trade/NN
deficits/NNS
./.
The/DT
pound/NN
likely/RB
will/MD
fall/VB
in/IN
coming/JJ
days/NNS
and/CC
may/MD
trade/VB
as/RB
low/JJ
as/IN
2.60/CD
marks/NNS
within/IN
the/DT
next/JJ
year/NN
,/,
says/VBZ
Nigel/NNP
Rendell/NNP
,/,
an/DT
international/JJ
economist/NN
at/IN
James/NNP
Capel/NNP
&/CC
Co./NNP
in/IN
London/NNP
./.
The/DT
pound/NN
was/VBD
at/IN
2.8896/CD
marks/NNS
late/JJ
Friday/NNP
,/,
off/RB
sharply/RB
from/IN
2.9511/CD
in/IN
New/NNP
York/NNP
trading/NN
a/DT
week/NN
earlier/RBR
./.
If/IN
the/DT
pound/NN
falls/VBZ
closer/RBR
to/TO
2.80/CD
marks/NNS
,/,
the/DT
Bank/NNP
of/IN
England/NNP
may/MD
raise/VB
Britain/NNP
's/POS
base/NN
lending/NN
rate/NN
by/IN
one/CD
percentage/NN
point/NN
to/TO
16/CD
%/NN
,/,
says/VBZ
Mr./NNP
Rendell/NNP
./.
But/CC
such/PDT
an/DT
increase/NN
,/,
he/PRP
says/VBZ
,/,
could/MD
be/VB
viewed/VBN
by/IN
the/DT
market/NN
as/IN
``/``
too/RB
little/JJ
too/RB
late/RB
./.
''/''
The/DT
Bank/NNP
of/IN
England/NNP
indicated/VBD
its/PRP$
desire/NN
to/TO
leave/VB
its/PRP$
monetary/JJ
policy/NN
unchanged/JJ
Friday/NNP
by/IN
declining/VBG
to/TO
raise/VB
the/DT
official/JJ
15/CD
%/NN
discount-borrowing/NN
rate/NN
that/IN
it/PRP
charges/VBZ
discount/NN
houses/NNS
,/,
analysts/NNS
say/VBP
./.
Pound/NN
concerns/NNS
aside/RB
,/,
the/DT
lack/NN
of/IN
strong/JJ
buying/NN
interest/NN
in/IN
the/DT
yen/NN
is/VBZ
another/DT
boon/NN
for/IN
the/DT
dollar/NN
,/,
many/JJ
traders/NNS
say/VBP
./.
The/DT
dollar/NN
has/VBZ
a/DT
``/``
natural/JJ
base/NN
of/IN
support/NN
''/''
around/RB
140/CD
yen/NNS
because/IN
the/DT
Japanese/JJ
currency/NN
has/VBZ
n't/RB
been/VBN
purchased/VBN
heavily/RB
in/IN
recent/JJ
weeks/NNS
,/,
says/VBZ
Ms./NNP
Soares-Kemp/NNP
of/IN
Credit/NNP
Suisse/NNP
./.
The/DT
yen/NN
's/POS
softness/NN
,/,
she/PRP
says/VBZ
,/,
apparently/RB
stems/VBZ
from/IN
Japanese/JJ
investors/NNS
'/POS
interest/NN
in/IN
buying/VBG
dollars/NNS
against/IN
the/DT
yen/NN
to/TO
purchase/VB
U.S./NNP
bond/NN
issues/NNS
and/CC
persistent/JJ
worries/NNS
about/IN
this/DT
year/NN
's/POS
upheaval/NN
in/IN
the/DT
Japanese/JJ
government/NN
./.
On/IN
New/NNP
York/NNP
's/POS
Commodity/NNP
Exchange/NNP
Friday/NNP
,/,
gold/NN
for/IN
current/JJ
delivery/NN
jumped/VBD
$/$
5.80/CD
,/,
to/TO
$/$
378.30/CD
an/DT
ounce/NN
,/,
the/DT
highest/JJS
settlement/NN
since/IN
July/NNP
12/CD
./.
Estimated/JJ
volume/NN
was/VBD
a/DT
heavy/JJ
seven/CD
million/CD
ounces/NNS
./.
In/IN
early/JJ
trading/NN
in/IN
Hong/NNP
Kong/NNP
Monday/NNP
,/,
gold/NN
was/VBD
quoted/VBN
at/IN
$/$
378.87/CD
an/DT
ounce/NN
./.
We/PRP
are/VBP
deeply/RB
disturbed/JJ
that/IN
a/DT
recent/JJ
editorial/NN
stated/VBD
that/IN
the/DT
``/``
Americans/NNP
With/IN
Disabilities/NNP
Act/NNP
of/IN
1989/CD
''/''
was/VBD
``/``
crafted/VBN
primarily/RB
by/IN
Democratic/JJ
Senators/NNPS
Kennedy/NNP
and/CC
Harkin/NNP
''/''
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a/DT
premise/NN
``/``
based/VBN
on/IN
the/DT
presumption/NN
that/IN
most/JJS
Americans/NNPS
are/VBP
hostile/JJ
to/TO
the/DT
disabled/JJ
.../:
./.
''/''
Perhaps/RB
even/RB
more/RBR
offensive/JJ
is/VBZ
the/DT
statement/NN
,/,
``/``
It/PRP
is/VBZ
surprising/JJ
that/IN
George/NNP
Bush/NNP
and/CC
the/DT
White/NNP
House/NNP
inner/JJ
circle/NN
would/MD
ally/VB
themselves/PRP
with/IN
this/DT
crabby/JJ
philosophy/NN
./.
''/''
This/DT
legislation/NN
was/VBD
not/RB
drafted/VBN
by/IN
a/DT
handful/NN
of/IN
Democratic/JJ
``/``
do-gooders/NNS
./.
''/''
Quite/PDT
the/DT
contrary/JJ
--/:
it/PRP
results/VBZ
from/IN
years/NNS
of/IN
work/NN
by/IN
members/NNS
of/IN
the/DT
National/NNP
Council/NNP
on/IN
the/DT
Handicapped/NNP
,/,
all/RB
appointed/VBN
by/IN
President/NNP
Reagan/NNP
./.
You/PRP
depict/VBP
the/DT
bill/NN
as/IN
something/NN
Democratic/JJ
leaders/NNS
``/``
hoodwinked/VBN
''/''
the/DT
administration/NN
into/IN
endorsing/VBG
./.
The/DT
opposite/JJ
is/VBZ
true/JJ
:/:
It/PRP
's/VBZ
the/DT
product/NN
of/IN
many/JJ
meetings/NNS
with/IN
administration/NN
officials/NNS
,/,
Senate/NNP
staffers/NNS
,/,
advocates/NNS
,/,
and/CC
business/NN
and/CC
transportation/NN
officials/NNS
./.
Many/JJ
congressmen/NNS
are/VBP
citing/VBG
the/DT
compromise/NN
on/IN
the/DT
``/``
Americans/NNP
With/IN
Disabilities/NNP
Act/NNP
of/IN
1989/CD
''/''
as/IN
a/DT
model/NN
for/IN
bipartisan/JJ
deliberations/NNS
./.
Most/JJS
National/NNP
Council/NNP
members/NNS
are/VBP
themselves/PRP
disabled/JJ
or/CC
are/VBP
parents/NNS
of/IN
children/NNS
with/IN
disabilities/NNS
./.
We/PRP
know/VBP
firsthand/RB
the/DT
discrimination/NN
addressed/VBN
by/IN
the/DT
act/NN
:/:
to/TO
be/VB
told/VBN
there/EX
's/VBZ
no/DT
place/NN
for/IN
your/PRP$
child/NN
in/IN
school/NN
;/:
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spend/VB
lonely/JJ
hours/NNS
at/IN
home/NN
because/IN
there/EX
is/VBZ
no/DT
transportation/NN
for/IN
someone/NN
in/IN
a/DT
wheelchair/NN
;/:
to/TO
be/VB
denied/VBN
employment/NN
because/IN
you/PRP
are/VBP
disabled/JJ
./.
Your/PRP$
editorial/NN
mockingly/RB
entitles/VBZ
this/DT
legislation/NN
the/DT
``/``
Lawyers/NNP
'/POS
Employment/NNP
Act/NNP
./.
''/''
For/IN
the/DT
43/CD
million/CD
people/NNS
with/IN
disabilities/NNS
and/CC
their/PRP$
families/NNS
,/,
this/DT
legislation/NN
is/VBZ
the/DT
``/``
Emancipation/NNP
Proclamation/NNP
./.
''/''
Sandra/NNP
Swift/NNP
Parrino/NNP
Chairperson/NNP
National/NNP
Council/NNP
on/IN
the/DT
Handicapped/NNP
Washington/NNP
A/DT
group/NN
of/IN
investors/NNS
led/VBN
by/IN
Giant/NNP
Group/NNP
Ltd./NNP
and/CC
its/PRP$
chairman/NN
,/,
Burt/NNP
Sugarman/NNP
,/,
said/VBD
it/PRP
filed/VBD
with/IN
federal/JJ
antitrust/JJ
regulators/NNS
for/IN
clearance/NN
to/TO
buy/VB
more/JJR
than/IN
50/CD
%/NN
of/IN
the/DT
stock/NN
of/IN
Rally/NNP
's/POS
Inc./NNP
,/,
a/DT
fast-food/NN
company/NN
based/VBN
in/IN
Louisville/NNP
,/,
Ky/NNP
./.
Rally/NNP
's/POS
operates/VBZ
and/CC
franchises/VBZ
about/RB
160/CD
fast-food/NN
restaurants/NNS
throughout/IN
the/DT
U.S/NNP
./.
The/DT
company/NN
went/VBD
public/JJ
earlier/RBR
this/DT
month/NN
,/,
offering/VBG
1,745,000/CD
shares/NNS
of/IN
common/JJ
stock/NN
at/IN
$/$
15/CD
a/DT
share/NN
./.
Giant/NN
has/VBZ
interests/NNS
in/IN
cement/NN
making/NN
and/CC
newsprint/NN
./.
The/DT
investor/NN
group/NN
includes/VBZ
Restaurant/NNP
Investment/NNP
Partnership/NNP
,/,
a/DT
California/NNP
general/JJ
partnership/NN
,/,
and/CC
three/CD
Rally/NNP
's/POS
directors/NNS
:/:
Mr./NNP
Sugarman/NNP
,/,
James/NNP
M./NNP
Trotter/NNP
III/NNP
and/CC
William/NNP
E./NNP
Trotter/NNP
II/NNP
./.
The/DT
group/NN
currently/RB
holds/VBZ
3,027,330/CD
Rally/NNP
's/POS
shares/NNS
,/,
or/CC
45.2/CD
%/NN
of/IN
its/PRP$
commmon/JJ
shares/NNS
outstanding/JJ
./.
Giant/NNP
Group/NNP
owned/VBD
22/CD
%/NN
of/IN
Rally/NNP
's/POS
shares/NNS
before/IN
the/DT
initial/JJ
public/JJ
offering/NN
./.
A/DT
second/JJ
group/NN
of/IN
three/CD
company/NN
directors/NNS
,/,
aligned/VBN
with/IN
Rally/NNP
's/POS
founder/NN
James/NNP
Patterson/NNP
,/,
also/RB
is/VBZ
seeking/VBG
control/NN
of/IN
the/DT
fast-food/NN
chain/NN
./.
It/PRP
is/VBZ
estimated/VBN
that/IN
the/DT
Patterson/NNP
group/NN
controls/VBZ
more/JJR
than/IN
40/CD
%/NN
of/IN
Rally/NNP
's/POS
stock/NN
./.
Rally/NNP
officials/NNS
were/VBD
n't/RB
available/JJ
to/TO
comment/VB
late/RB
yesterday/NN
./.
For/IN
the/DT
year/NN
ended/VBN
July/NNP
2/CD
,/,
Rally/NNP
had/VBD
net/JJ
income/NN
of/IN
$/$
2.4/CD
million/CD
,/,
or/CC
34/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
52.9/CD
million/CD
./.
Companies/NNS
listed/VBN
below/RB
reported/VBD
quarterly/JJ
profit/NN
substantially/RB
different/JJ
from/IN
the/DT
average/NN
of/IN
analysts/NNS
'/POS
estimates/NNS
./.
The/DT
companies/NNS
are/VBP
followed/VBN
by/IN
at/IN
least/JJS
three/CD
analysts/NNS
,/,
and/CC
had/VBD
a/DT
minimum/JJ
five-cent/JJ
change/NN
in/IN
actual/JJ
earnings/NNS
per/IN
share/NN
./.
Estimated/JJ
and/CC
actual/JJ
results/NNS
involving/VBG
losses/NNS
are/VBP
omitted/VBN
./.
The/DT
percent/NN
difference/NN
compares/VBZ
actual/JJ
profit/NN
with/IN
the/DT
30-day/JJ
estimate/NN
where/WRB
at/IN
least/JJS
three/CD
analysts/NNS
have/VBP
issues/NNS
forecasts/NNS
in/IN
the/DT
past/JJ
30/CD
days/NNS
./.
Otherwise/RB
,/,
actual/JJ
profit/NN
is/VBZ
compared/VBN
with/IN
the/DT
300-day/JJ
estimate/NN
./.
Source/NN
:/:
Zacks/NNP
Investment/NNP
Research/NNP
DPC/NNP
Acquisition/NNP
Partners/NNP
,/,
a/DT
hostile/NN
suitor/NN
for/IN
Dataproducts/NNP
Corp./NNP
,/,
filed/VBD
a/DT
petition/NN
in/IN
federal/JJ
district/NN
court/NN
in/IN
Los/NNP
Angeles/NNP
seeking/VBG
to/TO
have/VB
its/PRP$
standstill/NN
agreement/NN
with/IN
the/DT
computer/NN
printer/NN
maker/NN
declared/VBN
void/NN
,/,
and/CC
it/PRP
proceeded/VBD
with/IN
a/DT
$/$
10-a-share/JJ
tender/NN
offer/NN
for/IN
the/DT
company/NN
./.
The/DT
offer/NN
would/MD
give/VB
the/DT
transaction/NN
an/DT
indicated/JJ
value/NN
of/IN
$/$
189/CD
million/CD
,/,
based/VBN
on/IN
the/DT
18.9/CD
million/CD
shares/NNS
the/DT
group/NN
does/VBZ
n't/RB
already/RB
own/VB
./.
DPC/NNP
holds/VBZ
about/RB
7.8/CD
%/NN
of/IN
Dataproducts/NNP
'/POS
shares/NNS
./.
Lawyers/NNS
representing/VBG
DPC/NNP
declined/VBD
to/TO
elaborate/VB
,/,
saying/VBG
they/PRP
did/VBD
n't/RB
have/VB
a/DT
final/JJ
copy/NN
of/IN
the/DT
filing/NN
./.
Jack/NNP
Davis/NNP
,/,
Dataproducts/NNP
'/POS
chairman/NN
,/,
said/VBD
he/PRP
had/VBD
n't/RB
yet/RB
seen/VBN
the/DT
filing/NN
and/CC
could/MD
n't/RB
comment/VB
./.
DPC/NNP
made/VBD
a/DT
$/$
15-a-share/JJ
bid/NN
for/IN
the/DT
company/NN
in/IN
May/NNP
,/,
but/CC
Dataproducts/NNP
management/NN
considered/VBD
the/DT
$/$
283.7/CD
million/CD
proposal/NN
unacceptable/JJ
./.
Dataproducts/NNP
had/VBD
sought/VBN
a/DT
buyer/NN
for/IN
several/JJ
months/NNS
,/,
but/CC
it/PRP
is/VBZ
now/RB
in/IN
the/DT
midst/NN
of/IN
a/DT
restructuring/NN
plan/NN
and/CC
management/NN
says/VBZ
the/DT
company/NN
is/VBZ
no/RB
longer/RBR
for/IN
sale/NN
./.
Appalachian/NNP
Power/NNP
Co./NNP
,/,
a/DT
subsidiary/NN
of/IN
American/NNP
Electric/NNP
Power/NNP
Co./NNP
,/,
said/VBD
it/PRP
will/MD
redeem/VB
on/IN
Dec./NNP
1/CD
the/DT
entire/JJ
$/$
44.2/CD
million/CD
of/IN
its/PRP$
12/CD
7\/8/CD
%/NN
first/JJ
mortgage/NN
bonds/NNS
due/JJ
2013/CD
./.
The/DT
redemption/NN
price/NN
will/MD
be/VB
109.66/CD
%/NN
of/IN
the/DT
principal/NN
amount/NN
of/IN
the/DT
bonds/NNS
,/,
plus/CC
accrued/JJ
interest/NN
to/TO
the/DT
date/NN
of/IN
redemption/NN
./.
The/DT
European/NNP
Community/NNP
's/POS
consumer/NN
price/NN
index/NN
rose/VBD
a/DT
provisional/JJ
0.6/CD
%/NN
in/IN
September/NNP
from/IN
August/NNP
and/CC
was/VBD
up/RB
5.3/CD
%/NN
from/IN
September/NNP
1988/CD
,/,
according/VBG
to/TO
Eurostat/NNP
,/,
the/DT
EC/NNP
's/POS
statistical/JJ
agency/NN
./.
The/DT
month-to-month/JJ
rise/NN
in/IN
the/DT
index/NN
was/VBD
the/DT
largest/JJS
since/IN
April/NNP
,/,
Eurostat/NNP
said/VBD
./.
Efforts/NNS
by/IN
the/DT
Hong/NNP
Kong/NNP
Futures/NNPS
Exchange/NNP
to/TO
introduce/VB
a/DT
new/JJ
interest-rate/NN
futures/NNS
contract/NN
continue/VBP
to/TO
hit/VB
snags/NNS
,/,
despite/IN
the/DT
support/NN
the/DT
proposed/VBN
instrument/NN
enjoys/VBZ
in/IN
the/DT
colony/NN
's/POS
financial/JJ
community/NN
./.
Hong/NNP
Kong/NNP
financial/JJ
institutions/NNS
have/VBP
been/VBN
waiting/VBG
for/IN
interest-rate/NN
futures/NNS
for/IN
a/DT
long/JJ
time/NN
./.
The/DT
contract/NN
was/VBD
first/RB
proposed/VBN
more/JJR
than/IN
two/CD
years/NNS
ago/RB
,/,
but/CC
shortly/RB
afterward/RB
,/,
the/DT
colony/NN
's/POS
markets/NNS
were/VBD
hit/VBN
hard/RB
by/IN
the/DT
October/NNP
1987/CD
global/JJ
stock/NN
crash/NN
./.
The/DT
subsequent/JJ
drive/NN
to/TO
reform/VB
Hong/NNP
Kong/NNP
's/POS
markets/NNS
also/RB
has/VBZ
embroiled/VBN
the/DT
interest-rate/NN
futures/NNS
contract/NN
./.
The/DT
Securities/NNPS
and/CC
Futures/NNPS
Commission/NNP
,/,
a/DT
government/NN
watchdog/NN
set/VBD
up/RB
after/IN
the/DT
1987/CD
crash/NN
to/TO
try/VB
to/TO
restore/VB
confidence/NN
and/CC
order/NN
to/TO
Hong/NNP
Kong/NNP
's/POS
markets/NNS
,/,
had/VBD
been/VBN
expected/VBN
to/TO
give/VB
the/DT
contract/NN
conditional/JJ
approval/NN
last/JJ
week/NN
./.
But/CC
regulators/NNS
this/DT
week/NN
said/VBD
futures-exchange/NN
officials/NNS
still/RB
have/VB
a/DT
way/NN
to/TO
go/VB
before/IN
they/PRP
answer/VBP
all/PDT
the/DT
remaining/VBG
detailed/JJ
questions/NNS
about/IN
the/DT
contract/NN
./.
The/DT
exchange/NN
had/VBD
forecast/VBN
that/IN
the/DT
contract/NN
would/MD
begin/VB
trading/VBG
by/IN
December/NNP
./.
But/CC
securities/NNS
regulators/NNS
now/RB
say/VBP
privately/RB
that/IN
it/PRP
is/VBZ
n't/RB
likely/JJ
to/TO
start/VB
until/IN
the/DT
first/JJ
quarter/NN
of/IN
next/JJ
year/NN
./.
Analysts/NNS
and/CC
financial/JJ
officials/NNS
in/IN
the/DT
British/JJ
colony/NN
consider/VBP
the/DT
new/JJ
contract/NN
essential/JJ
to/TO
the/DT
revival/NN
of/IN
the/DT
Hong/NNP
Kong/NNP
Futures/NNPS
Exchange/NNP
,/,
which/WDT
has/VBZ
never/RB
fully/RB
recovered/VBN
from/IN
the/DT
October/NNP
1987/CD
crash/NN
./.
Many/JJ
believe/VBP
that/DT
without/IN
a/DT
healthy/JJ
futures/NNS
exchange/NN
,/,
Hong/NNP
Kong/NNP
's/POS
aspirations/NNS
to/TO
be/VB
recognized/VBN
as/IN
an/DT
international/JJ
financial/JJ
center/NN
will/MD
suffer/VB
./.
In/IN
addition/NN
,/,
local/JJ
banks/NNS
say/VBP
the/DT
new/JJ
contract/NN
is/VBZ
important/JJ
in/IN
helping/VBG
them/PRP
offset/VB
their/PRP$
Hong/NNP
Kong-dollar/NN
exposure/NN
./.
The/DT
contract/NN
will/MD
be/VB
based/VBN
on/IN
the/DT
three-month/JJ
Hong/NNP
Kong/NNP
interbank/NN
offered/JJ
rate/NN
,/,
or/CC
Hibor/NNP
./.
It/PRP
is/VBZ
almost/RB
a/DT
carbon/NN
copy/NN
of/IN
the/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
's/POS
Eurodollar/NN
contract/NN
,/,
which/WDT
is/VBZ
based/VBN
on/IN
the/DT
three-month/JJ
Eurodollar/NN
rate/NN
,/,
the/DT
rate/NN
paid/VBN
on/IN
U.S.-dollar/NN
deposits/NNS
in/IN
London/NNP
banks/NNS
./.
If/IN
the/DT
contract/NN
is/VBZ
as/RB
successful/JJ
as/IN
some/DT
expect/VBP
,/,
it/PRP
may/MD
do/VB
much/RB
to/TO
restore/VB
confidence/NN
in/IN
futures/NNS
trading/VBG
in/IN
Hong/NNP
Kong/NNP
./.
``/``
The/DT
contract/NN
is/VBZ
definitely/RB
important/JJ
to/TO
the/DT
exchange/NN
,/,
''/''
says/VBZ
Robert/NNP
Gilmore/NNP
,/,
executive/NN
director/NN
of/IN
the/DT
Securities/NNPS
and/CC
Futures/NNPS
Commission/NNP
./.
Two/CD
years/NNS
ago/RB
,/,
the/DT
futures/NNS
exchange/NN
was/VBD
the/DT
envy/NN
of/IN
other/JJ
would-be/JJ
futures/NNS
centers/NNS
./.
After/IN
only/RB
17/CD
months/NNS
,/,
its/PRP$
main/JJ
contract/NN
,/,
based/VBN
on/IN
the/DT
Hang/NNP
Seng/NNP
index/NN
,/,
had/VBD
grown/VBN
to/TO
be/VB
the/DT
second-largest/JJ
stock-index-futures/NNS
contract/NN
in/IN
the/DT
world/NN
./.
A/DT
futures/NNS
contract/NN
is/VBZ
an/DT
agreement/NN
to/TO
buy/VB
or/CC
sell/VB
a/DT
commodity/NN
or/CC
financial/JJ
instrument/NN
at/IN
a/DT
set/JJ
price/NN
on/IN
a/DT
specified/JJ
date/NN
./.
In/IN
the/DT
case/NN
of/IN
stock-index/NN
and/CC
interest-rate/NN
futures/NNS
,/,
the/DT
instruments/NNS
are/VBP
given/VBN
an/DT
underlying/VBG
cash/NN
value/NN
and/CC
are/VBP
settled/VBN
in/IN
cash/NN
./.
But/CC
in/IN
the/DT
week/NN
following/VBG
the/DT
1987/CD
stock/NN
crash/NN
,/,
the/DT
exchange/NN
verged/VBD
on/IN
collapse/NN
,/,
and/CC
the/DT
stock/NN
and/CC
futures/NNS
markets/NNS
in/IN
Hong/NNP
Kong/NNP
were/VBD
closed/VBN
for/IN
four/CD
days/NNS
./.
Only/RB
a/DT
government-sponsored/JJ
bailout/NN
kept/VBD
the/DT
crisis/NN
from/IN
swallowing/VBG
the/DT
exchange/NN
./.
Trading/NN
in/IN
Hang/NNP
Seng/NNP
index/NN
futures/NNS
remains/VBZ
crippled/VBN
by/IN
the/DT
experience/NN
./.
Volume/NN
for/IN
the/DT
entire/JJ
month/NN
of/IN
September/NNP
totaled/VBD
only/RB
21,687/CD
contracts/NNS
,/,
compared/VBN
with/IN
a/DT
daily/JJ
average/NN
of/IN
27,000/CD
in/IN
the/DT
month/NN
before/IN
the/DT
1987/CD
crash/NN
./.
Despite/IN
the/DT
thin/JJ
trading/NN
,/,
and/CC
after/IN
two/CD
painful/JJ
years/NNS
of/IN
restructuring/NN
,/,
the/DT
futures/NNS
market/NN
has/VBZ
shown/VBN
itself/PRP
to/TO
be/VB
resilient/JJ
in/IN
two/CD
recent/JJ
tests/NNS
./.
While/IN
Asian/JJ
markets/NNS
struggled/VBD
to/TO
cope/VB
with/IN
the/DT
uncertainty/NN
caused/VBN
by/IN
the/DT
Oct./NNP
13/CD
plunge/NN
in/IN
New/NNP
York/NNP
stock/NN
prices/NNS
,/,
futures/NNS
trading/NN
in/IN
Hong/NNP
Kong/NNP
was/VBD
relatively/RB
heavy/JJ
and/CC
went/VBD
smoothly/RB
./.
That/DT
was/VBD
also/RB
the/DT
case/NN
in/IN
the/DT
days/NNS
following/VBG
the/DT
June/NNP
4/CD
massacre/NN
in/IN
Beijing/NNP
,/,
which/WDT
caused/VBD
a/DT
sharp/JJ
drop/NN
in/IN
Hong/NNP
Kong/NNP
stock/NN
prices/NNS
./.
``/``
There/EX
was/VBD
no/DT
problem/NN
at/IN
all/DT
,/,
''/''
says/VBZ
Douglas/NNP
Ford/NNP
,/,
chief/JJ
executive/NN
officer/NN
of/IN
the/DT
futures/NNS
exchange/NN
./.
Most/RBS
important/JJ
to/TO
the/DT
contract/NN
's/POS
success/NN
is/VBZ
the/DT
commitment/NN
of/IN
Hong/NNP
Kong/NNP
's/POS
big/JJ
financial/JJ
institutions/NNS
,/,
especially/RB
the/DT
two/CD
leaders/NNS
,/,
Hongkong/NNP
&/CC
Shanghai/NNP
Banking/NNP
Corp./NNP
and/CC
the/DT
local/JJ
subsidiary/NN
of/IN
Britain/NNP
's/POS
Standard/NNP
Chartered/NNP
Bank/NNP
PLC/NNP
./.
The/DT
two/CD
big/JJ
banks/NNS
were/VBD
instrumental/JJ
in/IN
designing/VBG
the/DT
new/JJ
contract/NN
./.
``/``
If/IN
those/DT
two/CD
banks/NNS
are/VBP
there/RB
,/,
then/RB
the/DT
balance/NN
of/IN
the/DT
banking/NN
institutions/NNS
will/MD
be/VB
there/RB
,/,
''/''
says/VBZ
Mr./NNP
Gilmore/NNP
,/,
the/DT
Securities/NNPS
and/CC
Futures/NNPS
Commission/NNP
official/NN
./.
Colony/NN
banks/NNS
have/VBP
a/DT
major/JJ
stake/NN
in/IN
how/WRB
interest/NN
rates/NNS
move/VBP
because/IN
of/IN
their/PRP$
enormous/JJ
Hong/NNP
Kong-dollar/NN
exposure/NN
./.
Even/RB
though/IN
the/DT
currency/NN
is/VBZ
pegged/VBN
to/TO
the/DT
U.S./NNP
dollar/NN
,/,
with/IN
a/DT
fixed/JJ
exchange/NN
rate/NN
of/IN
HK$/$
7.8/CD
to/TO
the/DT
American/JJ
currency/NN
,/,
the/DT
U.S./NNP
and/CC
Hong/NNP
Kong/NNP
economies/NNS
do/VBP
n't/RB
always/RB
move/VB
in/IN
lock/JJ
step/NN
,/,
making/VBG
it/PRP
difficult/JJ
to/TO
predict/VB
where/WRB
interest/NN
rates/NNS
in/IN
the/DT
colony/NN
will/MD
go/VB
./.
In/IN
early/RB
1988/CD
,/,
when/WRB
the/DT
three-month/JJ
Eurodollar/NN
rate/NN
was/VBD
between/IN
7/CD
%/NN
and/CC
8/CD
%/NN
,/,
the/DT
three-month/JJ
Hibor/NNP
rate/NN
was/VBD
as/RB
low/JJ
as/IN
1/CD
%/NN
./.
Just/RB
a/DT
few/JJ
months/NNS
ago/RB
,/,
the/DT
three-month/JJ
Eurodollar/NN
rate/NN
was/VBD
around/IN
9.5/CD
%/NN
,/,
while/IN
three-month/JJ
Hibor/NNP
hit/VBD
highs/NNS
above/IN
11/CD
%/NN
./.
The/DT
Hibor/NNP
contract/NN
``/``
solves/VBZ
quite/RB
a/DT
bit/NN
of/IN
the/DT
problem/NN
of/IN
interest-rate/NN
risk/NN
in/IN
the/DT
interbank/NN
market/NN
,/,
''/''
says/VBZ
Eric/NNP
Cheng/NNP
,/,
a/DT
director/NN
of/IN
James/NNP
Capel/NNP
Far/NNP
East/NNP
Ltd./NNP
,/,
the/DT
Hong/NNP
Kong/NNP
arm/NN
of/IN
the/DT
British/JJ
brokerage/NN
firm/NN
./.
Despite/IN
the/DT
initial/JJ
support/NN
expected/VBD
,/,
trading/NN
in/IN
the/DT
contract/NN
is/VBZ
likely/JJ
to/TO
start/VB
slowly/RB
./.
The/DT
wounds/NNS
from/IN
the/DT
1987/CD
crash/NN
have/VBP
n't/RB
yet/RB
healed/VBN
,/,
and/CC
not/RB
all/DT
claims/NNS
against/IN
the/DT
exchange/NN
clearinghouse/NN
--/:
by/IN
those/DT
who/WP
bet/VB
the/DT
Hang/NNP
Seng/NNP
index/NN
would/MD
fall/VB
--/:
have/VBP
been/VBN
settled/VBN
./.
Companies/NNS
and/CC
financial/JJ
institutions/NNS
familiar/JJ
with/IN
Hong/NNP
Kong/NNP
remain/VBP
wary/JJ
of/IN
trading/NN
in/IN
its/PRP$
futures/NNS
market/NN
./.
And/CC
Mr./NNP
Gilmore/NNP
cautions/VBZ
that/IN
there/EX
may/MD
be/VB
limits/NNS
on/IN
how/WRB
much/JJ
the/DT
contract/NN
can/MD
grow/VB
because/IN
the/DT
Hong/NNP
Kong/NNP
dollar/NN
is/VBZ
n't/RB
a/DT
widely/RB
traded/JJ
currency/NN
./.
He/PRP
says/VBZ
the/DT
contract/NN
will/MD
be/VB
considered/VBN
a/DT
success/NN
if/IN
it/PRP
starts/VBZ
trading/VBG
500/CD
to/TO
1,000/CD
lots/NNS
a/DT
day/NN
./.
Exchange/NN
officials/NNS
also/RB
point/VBP
out/RB
that/IN
Hibor/NNP
futures/NNS
were/VBD
designed/VBN
for/IN
institutions/NNS
and/CC
corporations/NNS
,/,
not/RB
for/IN
the/DT
type/NN
of/IN
small/JJ
individual/JJ
investors/NNS
who/WP
were/VBD
very/RB
active/JJ
in/IN
Hang/NNP
Seng/NNP
index/NN
futures/NNS
and/CC
defaulted/VBD
in/IN
the/DT
1987/CD
crash/NN
./.
Mr./NNP
Cheng/NNP
says/VBZ
the/DT
low/JJ
margin/NN
required/VBN
for/IN
trading/NN
futures/NNS
attracted/VBD
a/DT
lot/NN
of/IN
small/JJ
investors/NNS
before/IN
the/DT
1987/CD
crash/NN
who/WP
did/VBD
n't/RB
realize/VB
that/DT
their/PRP$
risk/NN
was/VBD
virtually/RB
unlimited/JJ
./.
``/``
You/PRP
're/VBP
not/RB
going/VBG
to/TO
get/VB
your/PRP$
taxi/NN
drivers/NNS
and/CC
amahs/NNS
and/CC
all/PDT
that/DT
,/,
''/''
says/VBZ
Rory/NNP
Nicholas/NNP
,/,
a/DT
director/NN
for/IN
securities/NNS
company/NN
Elders/NNPS
Bullion/NNP
&/CC
Futures/NNPS
Ltd/NNP
./.
That/DT
should/MD
help/VB
to/TO
inspire/VB
confidence/NN
,/,
Mr./NNP
Gilmore/NNP
says/VBZ
./.
But/CC
many/JJ
bankers/NNS
remain/VBP
nervous/JJ
,/,
especially/RB
as/IN
the/DT
start-up/NN
of/IN
the/DT
contract/NN
continues/VBZ
to/TO
be/VB
delayed/VBN
./.
Two/CD
of/IN
Japan/NNP
's/POS
largest/JJS
paper/NN
manufacturers/NNS
,/,
Oji/NNP
Paper/NNP
Co./NNP
and/CC
Jujo/NNP
Paper/NNP
Co./NNP
,/,
posted/VBD
unconsolidated/JJ
pretax/JJ
profit/NN
gains/NNS
from/IN
a/DT
year/NN
earlier/RB
for/IN
the/DT
first/JJ
half/NN
ended/VBD
Sept./NNP
30/CD
,/,
on/IN
continuing/VBG
robust/JJ
domestic/JJ
demand/NN
for/IN
paper/NN
products/NNS
./.
Oji/NNP
Paper/NNP
,/,
the/DT
nation/NN
's/POS
largest/JJS
in/IN
terms/NNS
of/IN
sales/NNS
,/,
said/VBD
its/PRP$
pretax/JJ
profit/NN
rose/VBD
1.5/CD
%/NN
to/TO
23.11/CD
billion/CD
yen/NNS
US$/$
163.3/CD
million/CD
22.76/CD
billion/CD
yen/NNS
./.
Sales/NNS
jumped/VBD
12.2/CD
%/NN
to/TO
232.12/CD
billion/CD
yen/NNS
from/IN
206.87/CD
billion/CD
yen/NNS
./.
Net/JJ
income/NN
increased/VBN
6.7/CD
%/NN
to/TO
12.43/CD
billion/CD
yen/NNS
from/IN
11.66/CD
billion/CD
yen/NNS
./.
Per-share/JJ
net/NN
rose/VBD
to/TO
20.48/CD
yen/NNS
from/IN
19.51/CD
yen/NNS
./.
Oji/NNP
Paper/NNP
's/POS
sales/NNS
strength/NN
was/VBD
evident/JJ
in/IN
overall/JJ
paper/NN
products/NNS
sales/NNS
,/,
including/VBG
newsprints/NNS
,/,
printing/NN
and/CC
wrapping/NN
papers/NNS
,/,
which/WDT
rose/VBD
to/TO
221.61/CD
billion/CD
yen/NNS
in/IN
the/DT
first/JJ
half/NN
from/IN
200.70/CD
billion/CD
yen/NNS
a/DT
year/NN
earlier/RB
./.
Pulp/NN
,/,
processed/JJ
and/CC
miscellaneous/JJ
paper/NN
sales/NNS
also/RB
surged/VBD
./.
For/IN
the/DT
full/JJ
fiscal/JJ
year/NN
ending/VBG
next/JJ
March/NNP
,/,
Oji/NNP
predicted/VBD
that/IN
total/JJ
sales/NNS
of/IN
477.00/CD
billion/CD
yen/NNS
,/,
up/RB
from/IN
420.68/CD
billion/CD
yen/NNS
in/IN
the/DT
previous/JJ
fiscal/JJ
year/NN
./.
Pretax/JJ
profit/NN
is/VBZ
seen/VBN
at/IN
45.00/CD
billion/CD
yen/NNS
,/,
down/RB
from/IN
47.17/CD
billion/CD
yen/NNS
,/,
while/IN
net/JJ
income/NN
is/VBZ
estimated/VBN
at/IN
23.500/CD
billion/CD
yen/NNS
,/,
up/RB
from/IN
23.031/CD
billion/CD
yen/NNS
./.
The/DT
company/NN
did/VBD
n't/RB
provide/VB
an/DT
explanation/NN
for/IN
the/DT
softer/JJR
pretax/JJ
profit/NN
performance/NN
and/CC
officials/NNS
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
Jujo/NNP
Paper/NNP
said/VBD
its/PRP$
pretax/JJ
profit/NN
rose/VBD
0.3/CD
%/NN
to/TO
13.05/CD
billion/CD
yen/NNS
from/IN
13.02/CD
billion/CD
yen/NNS
./.
Sales/NNS
rose/VBD
8.5/CD
%/NN
to/TO
195.19/CD
billion/CD
yen/NNS
from/IN
179.916/CD
billion/CD
yen/NNS
./.
Net/JJ
income/NN
surged/VBD
10/CD
%/NN
to/TO
7.12/CD
billion/CD
yen/NNS
from/IN
6.47/CD
billion/CD
yen/NNS
./.
Per-share/JJ
net/NN
rose/VBD
to/TO
14.95/CD
yen/NNS
from/IN
14.44/CD
yen/NNS
./.
General/JJ
paper/NN
product/NN
sales/NNS
,/,
including/VBG
newsprints/NNS
and/CC
other/JJ
papers/NNS
,/,
accounting/VBG
for/IN
the/DT
bulk/NN
of/IN
sales/NNS
,/,
rose/VBD
to/TO
157.78/CD
billion/CD
yen/NNS
from/IN
143.88/CD
billion/CD
yen/NNS
./.
Jujo/NNP
Paper/NNP
predicted/VBD
that/IN
for/IN
the/DT
full/JJ
fiscal/JJ
year/NN
ending/VBG
next/IN
March/NNP
31/CD
,/,
sales/NNS
will/MD
total/VB
400.0/CD
billion/CD
yen/NNS
,/,
up/RB
from/IN
366.89/CD
billion/CD
yen/NNS
./.
Pretax/JJ
profit/NN
was/VBD
estimated/VBN
at/IN
23.0/CD
billion/CD
yen/NNS
,/,
down/RB
from/IN
25.51/CD
billion/CD
yen/NNS
,/,
while/IN
net/JJ
income/NN
was/VBD
estimated/VBN
at/IN
12/CD
billion/CD
yen/NNS
,/,
up/RB
from/IN
11.95/CD
billion/CD
yen/NNS
./.
Unocal/NNP
Corp./NNP
's/POS
decision/NN
to/TO
put/VB
its/PRP$
Norwegian/JJ
oil/NN
and/CC
gas/NN
interests/NNS
up/RP
for/IN
sale/NN
earlier/RBR
this/DT
week/NN
is/VBZ
another/DT
step/NN
in/IN
the/DT
company/NN
's/POS
strategic/JJ
review/NN
of/IN
its/PRP$
properties/NNS
,/,
and/CC
shows/VBZ
that/IN
few/JJ
of/IN
them/PRP
are/VBP
sacred/JJ
cows/NNS
./.
The/DT
company/NN
declined/VBD
to/TO
estimate/VB
the/DT
value/NN
of/IN
the/DT
Norwegian/JJ
holding/NN
./.
But/CC
Eugene/NNP
L./NNP
Nowak/NNP
,/,
an/DT
analyst/NN
at/IN
Dean/NNP
Witter/NNP
Reynolds/NNP
Inc./NNP
,/,
forecast/VBN
that/IN
the/DT
sale/NN
will/MD
bring/VB
in/RP
``/``
$/$
200/CD
million/CD
or/CC
substantially/RB
more/JJR
./.
''/''
The/DT
proposed/VBN
transaction/NN
is/VBZ
the/DT
latest/JJS
in/IN
a/DT
redeployment/NN
of/IN
assets/NNS
by/IN
the/DT
Los/NNP
Angeles-based/JJ
oil/NN
company/NN
that/WDT
has/VBZ
included/VBN
the/DT
$/$
200/CD
million/CD
sale/NN
of/IN
its/PRP$
headquarters/NN
property/NN
and/CC
the/DT
pending/VBG
sale/NN
of/IN
half/NN
of/IN
its/PRP$
Chicago/NNP
refinery/NN
and/CC
related/JJ
marketing/NN
operations/NNS
to/TO
Petroleos/NNP
de/FW
Venezuela/NNP
S.A/NNP
./.
Mr./NNP
Nowak/NNP
said/VBD
he/PRP
attaches/VBZ
particular/JJ
importance/NN
to/TO
the/DT
proposed/VBN
sale/NN
because/IN
it/PRP
suggests/VBZ
that/IN
the/DT
company/NN
is/VBZ
willing/JJ
to/TO
sell/VB
oil/NN
and/CC
gas/NN
assets/NNS
that/WDT
are/VBP
n't/RB
part/NN
of/IN
its/PRP$
major/JJ
strategic/JJ
strengths/NNS
./.
Unocal/NNP
said/VBD
it/PRP
expects/VBZ
to/TO
complete/VB
the/DT
sale/NN
of/IN
its/PRP$
Unocal/NNP
Norge/NNP
A\/S/NNP
unit/NN
by/IN
next/JJ
March/NNP
or/CC
April/NNP
./.
In/IN
addition/NN
to/TO
an/DT
18/CD
%/NN
stake/NN
in/IN
the/DT
Veslefrikk/NNP
offshore/JJ
field/NN
,/,
the/DT
Norwegian/JJ
unit/NN
has/VBZ
interests/NNS
ranging/VBG
from/IN
10/CD
%/NN
to/TO
25/CD
%/NN
in/IN
three/CD
other/JJ
Norwegian/JJ
oil/NN
and/CC
gas/NN
production/NN
licenses/NNS
./.
In/IN
1986/CD
,/,
Unocal/NNP
sold/VBD
a/DT
7.5/CD
%/NN
stake/NN
in/IN
the/DT
Veslefrikk/NNP
field/NN
to/TO
Deutsche/NNP
Erdolversorgungs/NNP
G.m.b/NNP
./.
H./NNP
,/,
a/DT
West/JJ
German/JJ
oil/NN
company/NN
,/,
for/IN
an/DT
undisclosed/JJ
amount/NN
./.
In/IN
1987/CD
,/,
it/PRP
sold/VBD
a/DT
2.5/CD
%/NN
stake/NN
in/IN
the/DT
Veslefrikk/NNP
field/NN
to/TO
the/DT
Swedish/JJ
national/JJ
oil/NN
company/NN
,/,
resulting/VBG
in/IN
a/DT
$/$
7/CD
million/CD
after-tax/JJ
gain/NN
./.
However/RB
,/,
those/DT
sales/NNS
were/VBD
early/JJ
in/IN
the/DT
field/NN
's/POS
history/NN
,/,
before/IN
production/NN
equipment/NN
was/VBD
installed/VBN
./.
The/DT
field/NN
is/VBZ
currently/RB
being/VBG
developed/VBN
and/CC
is/VBZ
slated/VBN
to/TO
start/VB
production/NN
by/IN
the/DT
end/NN
of/IN
the/DT
year/NN
./.
It/PRP
's/VBZ
expected/VBN
to/TO
produce/VB
about/IN
62,000/CD
barrels/NNS
per/IN
day/NN
./.
A/DT
company/NN
spokesman/NN
said/VBD
the/DT
Veslefrikk/NNP
field/NN
's/POS
gross/JJ
reserves/NNS
were/VBD
estimated/VBN
in/IN
1987/CD
at/IN
229/CD
million/CD
barrels/NNS
./.
However/RB
,/,
he/PRP
added/VBD
that/IN
that/DT
estimate/NN
,/,
made/VBN
before/IN
extensive/JJ
development/NN
drilling/NN
,/,
currently/RB
is/VBZ
being/VBG
reappraised/VBN
./.
The/DT
spokesman/NN
said/VBD
Unocal/NNP
has/VBZ
had/VBN
``/``
considerable/JJ
interest/NN
''/''
from/IN
prospective/JJ
buyers/NNS
./.
The/DT
company/NN
has/VBZ
retained/VBN
J./NNP
Henry/NNP
Schroder/NNP
Wagg/NNP
&/CC
Co./NNP
as/IN
financial/JJ
adviser/NN
and/CC
agent/NN
for/IN
the/DT
sale/NN
./.
France/NNP
's/POS
unemployment/NN
rate/NN
was/VBD
steady/JJ
at/IN
a/DT
seasonally/RB
adjusted/VBN
9.5/CD
%/NN
in/IN
September/NNP
,/,
the/DT
Social/NNP
Affairs/NNPS
Ministry/NNP
said/VBD
./.
In/IN
September/NNP
,/,
the/DT
number/NN
of/IN
jobless/JJ
rose/VBD
0.1/CD
%/NN
from/IN
the/DT
previous/JJ
month/NN
to/TO
2.5/CD
million/CD
on/IN
a/DT
seasonally/RB
adjusted/VBN
basis/NN
./.
The/DT
following/JJ
were/VBD
among/IN
yesterday/NN
's/POS
offerings/NNS
and/CC
pricings/NNS
in/IN
the/DT
U.S./NNP
and/CC
non-U.S./JJ
capital/NN
markets/NNS
,/,
with/IN
terms/NNS
and/CC
syndicate/NN
manager/NN
,/,
as/IN
compiled/VBN
by/IN
Dow/NNP
Jones/NNP
Capital/NNP
Markets/NNPS
Report/NNP
:/:
Tenneco/NNP
Credit/NNP
Corp./NNP
--/:
$/$
150/CD
million/CD
of/IN
9/CD
1\/4/CD
%/NN
senior/JJ
notes/NNS
due/JJ
Nov./NNP
1/CD
,/,
1996/CD
,/,
priced/VBN
at/IN
99.625/CD
to/TO
yield/VB
9.324/CD
%/NN
./.
The/DT
noncallable/JJ
issue/NN
was/VBD
priced/VBN
at/IN
a/DT
spread/NN
of/IN
144/CD
basis/NN
points/NNS
above/IN
the/DT
Treasury/NNP
's/POS
seven-year/JJ
note/NN
./.
Rated/VBN
Baa-2/JJ
by/IN
Moody/NNP
's/POS
Investors/NNPS
Service/NNP
Inc./NNP
and/CC
triple-B-plus/JJ
by/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NNP
,/,
the/DT
issue/NN
will/MD
be/VB
sold/VBN
through/IN
underwriters/NNS
led/VBN
by/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNPS
./.
Tenneco/NNP
Credit/NNP
is/VBZ
a/DT
unit/NN
of/IN
Tenneco/NNP
Inc/NNP
./.
Allegany/NNP
Health/NNP
System/NNP
--/:
three-part/JJ
issue/NN
of/IN
$/$
156.7/CD
million/CD
of/IN
revenue/NN
bonds/NNS
,/,
tentatively/RB
priced/VBN
through/IN
a/DT
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
group/NN
./.
The/DT
offering/NN
includes/VBZ
a/DT
new/JJ
issue/NN
of/IN
$/$
53/CD
million/CD
of/IN
Tampa/NNP
,/,
Fla./NNP
,/,
Series/NNP
1989/CD
revenue/NN
bonds/NNS
for/IN
St./NNP
Joseph/NNP
's/POS
Hospital/NNP
Inc./NNP
,/,
due/JJ
1996-2000/CD
,/,
2005/CD
and/CC
2023/CD
./.
The/DT
bonds/NNS
are/VBP
tentatively/RB
priced/VBN
to/TO
yield/VB
from/IN
6.90/CD
%/NN
in/IN
1996/CD
to/TO
7.55/CD
%/NN
in/IN
2023/CD
./.
The/DT
other/JJ
two/CD
portions/NNS
of/IN
the/DT
deal/NN
are/VBP
remarketings/NNS
of/IN
outstanding/JJ
debt/NN
rather/RB
than/IN
new/JJ
issues/NNS
./.
The/DT
bonds/NNS
are/VBP
rated/VBN
single-A/JJ
by/IN
Moody/NNP
's/POS
and/CC
single-A-plus/JJ
by/IN
S&P/NN
,/,
according/VBG
to/TO
the/DT
lead/JJ
underwriter/NN
./.
City/NNP
and/CC
County/NNP
of/IN
Honolulu/NNP
--/:
$/$
75/CD
million/CD
of/IN
general/JJ
obligation/NN
bonds/NNS
,/,
1989/CD
Series/NN
B/NNP
,/,
due/JJ
1993-2009/CD
,/,
through/IN
a/DT
Bear/NNP
,/,
Stearns/NNP
&/CC
Co./NNP
group/NN
./.
The/DT
bonds/NNS
,/,
rated/VBN
double-A/JJ
by/IN
Moody/NNP
's/POS
and/CC
S&P/NNP
,/,
were/VBD
priced/VBN
to/TO
yield/VB
from/IN
6.20/CD
%/NN
in/IN
1993/CD
to/TO
7.10/CD
%/NN
in/IN
2008/CD
and/CC
2009/CD
./.
Federal/NNP
National/NNP
Mortgage/NNP
Association/NNP
--/:
$/$
500/CD
million/CD
of/IN
Remic/NNP
mortgage/NN
securities/NNS
being/VBG
offered/VBN
in/IN
12/CD
classes/NNS
by/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc/NNP
./.
The/DT
offering/NN
,/,
Series/NNS
1989-89/CD
,/,
backed/VBN
by/IN
Fannie/NNP
Mae/NNP
9/CD
%/NN
securities/NNS
,/,
brings/VBZ
Fannie/NNP
Mae/NNP
's/POS
1989/CD
Remic/NNP
issuance/NN
to/TO
$/$
33.2/CD
billion/CD
and/CC
its/PRP$
total/JJ
Remic/NNP
volume/NN
to/TO
$/$
45.3/CD
billion/CD
since/IN
the/DT
program/NN
began/VBD
in/IN
April/NNP
1987/CD
./.
Pricing/NN
terms/NNS
were/VBD
n't/RB
available/JJ
./.
Kyushu/NNP
Electric/NNP
Power/NNP
Co/NNP
./.
Japan/NNP
$/$
200/CD
million/CD
of/IN
8/CD
7\/8/CD
%/NN
bonds/NNS
due/JJ
Nov./NNP
28/CD
,/,
1996/CD
,/,
priced/VBN
at/IN
101/CD
7\/8/CD
to/TO
yield/VB
8/CD
7\/8/CD
%/NN
less/CC
full/JJ
fees/NNS
,/,
via/IN
Yamaichi/NNP
International/NNP
Europe/NNP
Ltd/NNP
./.
Fees/NNS
1/CD
7\/8/CD
./.
Toshiba/NNP
Corp/NNP
./.
Japan/NNP
$/$
1.2/CD
billion/CD
of/IN
bonds/NNS
due/JJ
Nov./NNP
16/CD
,/,
1993/CD
,/,
with/IN
equity-purchase/NN
warrants/NNS
,/,
indicating/VBG
a/DT
3/CD
3\/4/CD
%/NN
coupon/NN
at/IN
par/JJ
,/,
via/IN
Nomura/NNP
International/NNP
Ltd/NNP
./.
Each/DT
$/$
5,000/CD
bond/NN
carries/VBZ
a/DT
warrant/NN
exercisable/JJ
Dec./NNP
1/CD
,/,
1989/CD
,/,
through/IN
Nov./NNP
9/CD
,/,
1993/CD
,/,
to/TO
buy/VB
company/NN
shares/NNS
at/IN
an/DT
expected/JJ
premium/NN
of/IN
2/CD
1\/2/CD
%/NN
to/TO
the/DT
closing/NN
share/NN
price/NN
when/WRB
terms/NNS
are/VBP
fixed/VBN
Nov./NNP
2/CD
./.
Credit/NNP
Lyonnais/NNP
Australia/NNP
Ltd/NNP
./.
French/JJ
parent/NN
50/CD
million/CD
Australian/JJ
dollars/NNS
of/IN
16/CD
1\/4/CD
%/NN
bonds/NNS
due/JJ
Nov./NNP
30/CD
,/,
1992/CD
,/,
priced/VBN
at/IN
102/CD
to/TO
yield/VB
16.03/CD
%/NN
less/CC
full/JJ
fees/NNS
,/,
via/IN
Hambros/NNP
Bank/NNP
Ltd/NNP
./.
Guarantee/NN
by/IN
Credit/NNP
Lyonnais/NNP
./.
Fees/NNS
1/CD
1\/2/CD
./.
World/NNP
Bank/NNP
agency/NN
#/#
100/CD
million/CD
of/IN
10/CD
7\/8/CD
%/NN
bonds/NNS
due/JJ
Aug./NNP
15/CD
,/,
1994/CD
,/,
offered/VBN
at/IN
96.95/CD
to/TO
yield/VB
11.71/CD
%/NN
,/,
via/IN
Baring/NNP
Brothers/NNPS
&/CC
Co/NNP
./.
Tap/VB
on/IN
outstanding/JJ
#/#
100/CD
million/CD
issue/NN
./.
Also/RB
issued/VBN
were/VBD
10/CD
billion/CD
yen/NNS
of/IN
bonds/NNS
due/JJ
Dec./NNP
5/CD
,/,
1994/CD
,/,
priced/VBN
at/IN
101/CD
1\/2/CD
,/,
with/IN
coupon/NN
paid/VBN
in/IN
Australian/JJ
dollars/NNS
,/,
via/IN
LTCB/NNP
International/NNP
Ltd/NNP
./.
Interest/NN
during/IN
first/JJ
year/NN
paid/VBN
semiannually/RB
at/IN
7.51/CD
%/NN
./.
Thereafter/RB
,/,
interest/NN
paid/VBN
annually/RB
at/IN
7.65/CD
%/NN
./.
The/DT
World/NNP
Bank/NNP
also/RB
offered/VBD
100/CD
million/CD
Swiss/JJ
francs/NNS
of/IN
6/CD
%/NN
bonds/NNS
due/JJ
Nov./NNP
16/CD
,/,
1999/CD
,/,
priced/VBN
at/IN
101/CD
1\/4/CD
to/TO
yield/VB
5.83/CD
%/NN
via/IN
Credit/NNP
Suisse/NNP
./.
Option/NN
by/IN
borrower/NN
to/TO
increase/VB
issue/NN
amount/NN
to/TO
150/CD
million/CD
francs/NNS
./.
Mandom/NNP
Corp/NNP
./.
Japan/NNP
80/CD
million/CD
Swiss/JJ
francs/NNS
of/IN
privately/RB
placed/VBN
convertible/JJ
notes/NNS
due/JJ
March/NNP
31/CD
,/,
1994/CD
,/,
with/IN
fixed/JJ
0.25/CD
%/NN
coupon/NN
at/IN
par/JJ
,/,
via/IN
Nomura/NNP
Bank/NNP
Switzerland/NNP
./.
Put/VBD
March/NNP
31/CD
,/,
1992/CD
,/,
at/IN
a/DT
fixed/JJ
107/CD
3\/4/CD
to/TO
yield/VB
3.43/CD
%/NN
./.
Each/DT
50,000/CD
Swiss/JJ
franc/NN
note/NN
convertible/NN
Dec./NNP
4/CD
,/,
1989/CD
,/,
through/IN
March/NNP
17/CD
,/,
1994/CD
,/,
at/IN
a/DT
5/CD
%/NN
premium/NN
over/IN
closing/NN
share/NN
price/NN
Nov./NNP
1/CD
,/,
when/WRB
terms/NNS
are/VBP
fixed/VBN
./.
Nippon/NNP
Air/NNP
Brake/NNP
Co/NNP
./.
Japan/NNP
140/CD
million/CD
Swiss/JJ
francs/NNS
of/IN
privately/RB
placed/VBN
convertible/JJ
notes/NNS
due/JJ
March/NNP
31/CD
,/,
1994/CD
,/,
with/IN
fixed/VBN
0.25/CD
%/NN
coupon/NN
at/IN
par/JJ
,/,
via/IN
Yamaichi/NNP
Bank/NNP
Switzerland/NNP
Put/VBD
March/NNP
31/CD
,/,
1992/CD
,/,
at/IN
fixed/JJ
107/CD
13\/16/CD
to/TO
yield/VB
3.43/CD
%/NN
./.
Each/DT
50,000/CD
Swiss/JJ
franc/NN
note/NN
convertible/JJ
Nov./NNP
27/CD
,/,
1989/CD
,/,
through/IN
March/NNP
17/CD
,/,
1994/CD
,/,
at/IN
a/DT
5/CD
%/NN
premium/NN
over/IN
closing/NN
share/NN
price/NN
Nov./NNP
1/CD
,/,
when/WRB
terms/NNS
are/VBP
fixed/VBN
./.
Credit/NNP
Suisse/NNP
Finance/NNP
Gibraltar/NNP
Ltd/NNP
./.
Swiss/JJ
parent/NN
100/CD
billion/CD
lire/NNS
of/IN
12/CD
5\/8/CD
%/NN
bonds/NNS
due/JJ
June/NNP
30/CD
,/,
1993/CD
,/,
priced/VBN
at/IN
101.45/CD
to/TO
yield/VB
12.75/CD
%/NN
less/CC
full/JJ
fees/NNS
,/,
via/IN
Banca/NNP
Nazionale/NNP
del/FW
Lavaro/NN
./.
Guarantee/NN
by/IN
Credit/NNP
Suisse/NNP
./.
Fees/NNS
1/CD
5\/8/CD
./.
Maryland/NNP
National/NNP
Bank/NNP
--/:
$/$
267/CD
million/CD
of/IN
securities/NNS
backed/VBN
by/IN
home-equity/NN
lines/NNS
of/IN
credit/NN
through/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNPS
./.
The/DT
bank/NN
is/VBZ
a/DT
subsidiary/NN
of/IN
Baltimore-based/JJ
MNC/NNP
Financial/NNP
Inc/NNP
./.
The/DT
securities/NNS
were/VBD
priced/VBN
to/TO
float/VB
monthly/RB
at/IN
20/CD
basis/NN
points/NNS
above/IN
the/DT
30-day/JJ
commercial/JJ
paper/NN
rate/NN
./.
The/DT
issue/NN
,/,
formally/RB
titled/VBN
MNB/NNP
Home/NNP
Equity/NNP
Loan/NNP
Asset/NNP
Backed/NNP
Certificates/NNPS
,/,
Series/NN
1989/CD
,/,
will/MD
represent/VB
interest/NN
in/IN
a/DT
trust/NN
fund/NN
of/IN
home/NN
equity/NN
revolving/VBG
credit/NN
line/NN
loans/NNS
originated/VBN
by/IN
the/DT
retail/JJ
finance/NN
division/NN
of/IN
Maryland/NNP
National/NNP
Bank/NNP
and/CC
secured/VBN
primarily/RB
by/IN
second/JJ
deeds/NNS
of/IN
trust/NN
or/CC
second/JJ
mortgages/NNS
on/IN
single/JJ
to/TO
four-family/JJ
residential/JJ
properties/NNS
./.
The/DT
securities/NNS
are/VBP
rated/VBN
triple-A/JJ
by/IN
Moody/NNP
's/POS
and/CC
Duff/NNP
&/CC
Phelps/NNP
Inc/NNP
./.
They/PRP
are/VBP
expected/VBN
to/TO
have/VB
an/DT
average/JJ
life/NN
of/IN
3.16/CD
years/NNS
./.
Maryland/NNP
National/NNP
Bank/NNP
's/POS
retail/JJ
finance/NN
division/NN
will/MD
continue/VB
to/TO
service/VB
the/DT
loans/NNS
./.
First/NNP
National/NNP
Bank/NNP
of/IN
Chicago/NNP
will/MD
act/VB
as/IN
trustee/NN
,/,
and/CC
the/DT
transaction/NN
will/MD
be/VB
supported/VBN
by/IN
an/DT
8/CD
%/NN
letter/NN
of/IN
credit/NN
issued/VBN
by/IN
Dai-Ichi/NNP
Kangyo/NNP
Bank/NNP
Ltd./NNP
,/,
Chicago/NNP
branch/NN
./.
Province/NNP
of/IN
Nova/NNP
Scotia/NNP
--/:
$/$
250/CD
million/CD
of/IN
8/CD
1\/4/CD
%/NN
debentures/NNS
due/JJ
Nov./NNP
15/CD
,/,
2019/CD
,/,
priced/VBN
at/IN
99.775/CD
to/TO
yield/VB
8.28/CD
%/NN
./.
The/DT
noncallable/JJ
issue/NN
,/,
which/WDT
can/MD
be/VB
put/VBN
back/RB
to/TO
the/DT
province/NN
in/IN
2001/CD
,/,
was/VBD
priced/VBN
at/IN
a/DT
spread/NN
of/IN
41/CD
basis/NN
points/NNS
above/IN
the/DT
Treasury/NNP
's/POS
10-year/JJ
note/NN
./.
Rated/VBN
single-A-2/JJ
by/IN
Moody/NNP
's/POS
and/CC
single-A-minus/NN
by/IN
S&P/NNP
,/,
the/DT
issue/NN
will/MD
be/VB
sold/VBN
through/IN
underwriters/NNS
led/VBN
by/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNPS
./.
Bausch/NNP
&/CC
Lomb/NNP
Inc./NNP
said/VBD
it/PRP
plans/VBZ
to/TO
introduce/VB
next/JJ
year/NN
a/DT
new/JJ
line/NN
of/IN
sunglasses/NNS
containing/VBG
melanin/NN
,/,
the/DT
pigment/NN
that/WDT
protects/VBZ
against/IN
damage/NN
from/IN
ultraviolet/JJ
rays/NNS
./.
The/DT
optical/JJ
products/NNS
company/NN
has/VBZ
signed/VBN
a/DT
licensing/NN
agreement/NN
with/IN
Photoprotective/NNP
Technologies/NNPS
Inc./NNP
,/,
a/DT
closely/RB
held/JJ
firm/NN
in/IN
San/NNP
Antonio/NNP
,/,
Texas/NNP
,/,
which/WDT
has/VBZ
developed/VBN
a/DT
method/NN
to/TO
incorporate/VB
the/DT
synthetic/JJ
melanin/NN
into/IN
plastic/JJ
lenses/NNS
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Security/NNP
Pacific/NNP
Corp./NNP
has/VBZ
set/VBN
its/PRP$
sights/NNS
on/IN
buying/VBG
its/PRP$
second/JJ
bank/NN
holding/VBG
company/NN
this/DT
year/NN
./.
Security/NN
said/VBD
it/PRP
signed/VBD
a/DT
letter/NN
of/IN
intent/NN
to/TO
purchase/VB
La/NNP
Jolla/NNP
Bancorp/NNP
,/,
agreeing/VBG
to/TO
pay/VB
$/$
15/CD
of/IN
its/PRP$
own/JJ
stock/NN
for/IN
each/DT
share/NN
of/IN
La/NNP
Jolla/NNP
./.
Based/VBN
on/IN
the/DT
current/JJ
number/NN
of/IN
La/NNP
Jolla/NNP
shares/NNS
,/,
that/WDT
gives/VBZ
the/DT
transaction/NN
a/DT
value/NN
of/IN
$/$
104/CD
million/CD
./.
La/NNP
Jolla/NNP
is/VBZ
the/DT
parent/NN
company/NN
of/IN
La/NNP
Jolla/NNP
Bank/NNP
&/CC
Trust/NNP
Co./NNP
,/,
which/WDT
has/VBZ
12/CD
branches/NNS
in/IN
San/NNP
Diego/NNP
County/NNP
./.
As/IN
of/IN
Sept./NNP
30/CD
,/,
the/DT
bank/NN
had/VBD
assets/NNS
of/IN
$/$
511/CD
million/CD
and/CC
deposits/NNS
of/IN
$/$
469/CD
million/CD
,/,
Security/NNP
Pacific/NNP
said/VBD
./.
Earlier/RBR
this/DT
month/NN
,/,
Security/NNP
Pacific/NNP
,/,
which/WDT
is/VBZ
among/IN
the/DT
10/CD
largest/JJS
bank/NN
holding/VBG
companies/NNS
in/IN
the/DT
U.S./NNP
,/,
completed/VBD
the/DT
acquisition/NN
of/IN
San/NNP
Diego-based/JJ
Southwest/NNP
Bancorp/NNP
./.
South/NNP
Africa/NNP
's/POS
current/JJ
account/NN
surplus/NN
swelled/VBD
to/TO
a/DT
seasonally/RB
adjusted/VBN
annual/JJ
rate/NN
of/IN
between/IN
five/CD
billion/CD
and/CC
six/CD
billion/CD
rand/NNS
$/$
1.9/CD
billion/CD
and/CC
$/$
2.28/CD
billion/CD
the/DT
third/JJ
quarter/NN
,/,
Reserve/NNP
Bank/NNP
Governor/NNP
Chris/NNP
Stals/NNP
said/VBD
./.
The/DT
surplus/NN
was/VBD
two/CD
billion/CD
rand/NNS
in/IN
the/DT
second/JJ
quarter/NN
and/CC
2.7/CD
billion/CD
rand/NNS
in/IN
the/DT
first/JJ
quarter/NN
./.
He/PRP
said/VBD
this/DT
improvement/NN
means/VBZ
it/PRP
is/VBZ
still/RB
possible/JJ
to/TO
reach/VB
the/DT
targeted/JJ
current/JJ
account/NN
surplus/NN
of/IN
four/CD
billion/CD
rand/NNS
for/IN
1989/CD
./.
Moscom/NNP
Corp./NNP
said/VBD
its/PRP$
board/NN
approved/VBD
the/DT
repurchase/NN
of/IN
as/RB
many/JJ
as/IN
300,000/CD
common/JJ
shares/NNS
when/WRB
market/NN
conditions/NNS
are/VBP
suitable/JJ
./.
The/DT
maker/NN
of/IN
telecommunications/NN
management/NN
systems/NNS
had/VBD
6,420,268/CD
shares/NNS
outstanding/JJ
as/IN
of/IN
Sept./NNP
30/CD
./.
In/IN
over-the-counter/JJ
trading/NN
yesterday/NN
,/,
Moscom/NNP
closed/VBD
at/IN
$/$
4.375/CD
,/,
up/RB
37.5/CD
cents/NNS
./.
Service/NNP
Corp./NNP
International/NNP
said/VBD
it/PRP
expects/VBZ
to/TO
report/VB
net/JJ
income/NN
of/IN
15/CD
cents/NNS
a/DT
share/NN
for/IN
the/DT
third/JJ
quarter/NN
./.
The/DT
company/NN
said/VBD
it/PRP
expects/VBZ
to/TO
release/VB
third-quarter/JJ
results/NNS
in/IN
mid-November/NNP
./.
The/DT
funeral/JJ
home/NN
and/CC
cemetery/NN
operator/NN
changed/VBD
from/IN
a/DT
fiscal/JJ
year/NN
to/TO
a/DT
calendar/NN
year/NN
in/IN
December/NNP
./.
In/IN
the/DT
comparable/JJ
year-ago/JJ
quarter/NN
,/,
the/DT
second/JJ
quarter/NN
ended/VBD
Oct./NNP
31/CD
,/,
Service/NNP
Corp./NNP
had/VBD
a/DT
loss/NN
of/IN
about/IN
$/$
12.5/CD
million/CD
,/,
or/CC
26/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
175.4/CD
million/CD
./.
Results/NNS
for/IN
that/DT
quarter/NN
included/VBD
a/DT
$/$
30/CD
million/CD
,/,
or/CC
40/CD
cents/NNS
a/DT
share/NN
,/,
write-down/NN
associated/VBN
with/IN
the/DT
consolidation/NN
of/IN
a/DT
facility/NN
./.
Your/PRP$
Sept./NNP
25/CD
criticism/NN
of/IN
credit-card/NN
foreign-exchange/NN
charges/NNS
is/VBZ
unwarranted/JJ
./.
I/PRP
have/VBP
just/RB
returned/VBN
from/IN
France/NNP
,/,
and/CC
the/DT
net/JJ
exchange/NN
rate/NN
charged/VBN
on/IN
my/PRP$
Visa/NNP
account/NN
was/VBD
more/RBR
favorable/JJ
than/IN
I/PRP
obtained/VBD
for/IN
traveler/NN
's/POS
checks/NNS
in/IN
any/DT
of/IN
the/DT
several/JJ
banks/NNS
where/WRB
I/PRP
converted/VBD
them/PRP
./.
Vincent/NNP
Jolivet/NNP
Kenmore/NNP
,/,
Wash/NNP
./.
The/DT
state-controlled/JJ
French/JJ
metals/NNS
group/NN
Pechiney/NNP
S.A./NNP
said/VBD
it/PRP
has/VBZ
signed/VBN
a/DT
preliminary/JJ
accord/NN
to/TO
sell/VB
its/PRP$
Paris/NNP
headquarters/NN
to/TO
Groupement/NNP
Foncier/NNP
Francais/NNP
and/CC
Nouveaux/NNP
Constructeurs/NNP
for/IN
2.76/CD
billion/CD
francs/NNS
$/$
443/CD
million/CD
The/DT
sale/NN
,/,
which/WDT
Pechiney/NNP
had/VBD
been/VBN
eager/JJ
to/TO
make/VB
for/IN
several/JJ
months/NNS
,/,
is/VBZ
still/RB
subject/JJ
to/TO
certain/JJ
unspecified/JJ
conditions/NNS
and/CC
is/VBZ
expected/VBN
to/TO
be/VB
completed/VBN
during/IN
the/DT
first/JJ
quarter/NN
of/IN
1990/CD
,/,
the/DT
group/NN
./.
Hong/NNP
Kong/NNP
's/POS
main/JJ
measure/NN
of/IN
consumer/NN
prices/NNS
rose/VBD
10/CD
%/NN
in/IN
September/NNP
from/IN
a/DT
year/NN
earlier/RB
,/,
the/DT
government/NN
said/VBD
./.
The/DT
Consumer/NNP
Price/NNP
Index/NNP
``/``
A/NNP
''/''
,/,
which/WDT
measures/VBZ
price/NN
changes/NNS
for/IN
the/DT
50/CD
%/NN
of/IN
urban/JJ
households/NNS
that/WDT
spend/VBP
between/IN
2,000/CD
Hong/NNP
Kong/NNP
dollars/NNS
US$/$
256.18/CD
HK$/$
6,499/CD
a/DT
month/NN
,/,
edged/VBD
up/RB
1.5/CD
%/NN
in/IN
September/NNP
from/IN
August/NNP
./.
Index/NN
``/``
B/NNP
''/''
,/,
which/WDT
monitors/VBZ
price/NN
changes/NNS
for/IN
the/DT
30/CD
%/NN
of/IN
urban/JJ
households/NNS
that/WDT
spend/VBP
between/IN
HK$/$
6,500/CD
and/CC
HK$/$
9,999/CD
a/DT
month/NN
,/,
rose/VBD
9.9/CD
%/NN
last/JJ
month/NN
from/IN
a/DT
year/NN
earlier/RB
and/CC
was/VBD
up/RB
1.3/CD
%/NN
from/IN
the/DT
preceding/VBG
month/NN
./.
September/NNP
's/POS
Hang/NNP
Seng/NNP
Consumer/NNP
Price/NNP
Index/NNP
,/,
which/WDT
measures/VBZ
price/NN
changes/NNS
for/IN
the/DT
10/CD
%/NN
of/IN
urban/JJ
households/NNS
spending/VBG
HK$/$
10,000/CD
and/CC
HK$/$
24,999/CD
a/DT
month/NN
,/,
was/VBD
up/RB
11/CD
%/NN
from/IN
a/DT
year/NN
ago/RB
and/CC
up/RB
1.3/CD
%/NN
from/IN
August/NNP
./.
The/DT
main/JJ
factors/NNS
for/IN
the/DT
September/NNP
increase/NN
from/IN
the/DT
previous/JJ
month/NN
were/VBD
higher/JJR
prices/NNS
for/IN
services/NNS
,/,
food/NN
and/CC
housing/NN
./.
Prices/NNS
fell/VBD
marginally/RB
for/IN
fuel/NN
and/CC
electricity/NN
./.
West/JJ
German/JJ
and/CC
French/JJ
authorities/NNS
have/VBP
cleared/VBN
Dresdner/NNP
Bank/NNP
AG/NNP
's/POS
takeover/NN
of/IN
a/DT
majority/NN
stake/NN
in/IN
Banque/NNP
Internationale/NNP
de/FW
Placement/NNP
BIP/NNP
Dresdner/NNP
Bank/NNP
said/VBD
./.
The/DT
approval/NN
,/,
which/WDT
had/VBD
been/VBN
expected/VBN
,/,
permits/VBZ
West/NNP
Germany/NNP
's/POS
second-largest/JJ
bank/NN
to/TO
acquire/VB
shares/NNS
of/IN
the/DT
French/JJ
investment/NN
bank/NN
./.
In/IN
a/DT
first/JJ
step/NN
,/,
Dresdner/NNP
Bank/NNP
will/MD
buy/VB
32.99/CD
%/NN
of/IN
BIP/NNP
for/IN
1,015/CD
French/JJ
francs/NNS
$/$
162/CD
a/DT
share/NN
,/,
or/CC
528/CD
million/CD
francs/NNS
$/$
84.7/CD
million/CD
Dresdner/NNP
Bank/NNP
said/VBD
it/PRP
will/MD
also/RB
buy/VB
all/DT
shares/NNS
tendered/VBN
by/IN
shareholders/NNS
on/IN
the/DT
Paris/NNP
Stock/NNP
Exchange/NNP
at/IN
the/DT
same/JJ
price/NN
from/IN
today/NN
through/IN
Nov./NNP
17/CD
./.
In/IN
addition/NN
,/,
the/DT
bank/NN
has/VBZ
an/DT
option/NN
to/TO
buy/VB
a/DT
30.84/CD
%/NN
stake/NN
in/IN
BIP/NNP
from/IN
Societe/NNP
Generale/NNP
after/IN
Jan./NNP
1/CD
,/,
1990/CD
at/IN
1,015/CD
francs/NNS
a/DT
share/NN
./.
Furukawa/NNP
Electric/NNP
Co./NNP
,/,
one/CD
of/IN
Japan/NNP
's/POS
leading/VBG
electric/JJ
wire/NN
and/CC
cable/NN
manufacturers/NNS
,/,
said/VBD
unconsolidated/JJ
pretax/JJ
profit/NN
in/IN
the/DT
fiscal/JJ
first/JJ
half/NN
ended/VBN
Sept./NNP
30/CD
fell/VBD
5.3/CD
%/NN
to/TO
6.11/CD
billion/CD
yen/NNS
$/$
43.1/CD
million/CD
6.45/CD
billion/CD
yen/NNS
a/DT
year/NN
earlier/RB
./.
Sales/NNS
increased/VBN
11.9/CD
%/NN
to/TO
279.39/CD
billion/CD
yen/NNS
from/IN
249.68/CD
billion/CD
yen/NNS
./.
Net/NN
fell/VBD
1/CD
%/NN
to/TO
3.23/CD
billion/CD
yen/NNS
from/IN
3.26/CD
billion/CD
yen/NNS
./.
Pershare/JJ
net/NN
fell/VBD
to/TO
4.97/CD
yen/NNS
from/IN
5.40/CD
yen/NNS
./.
The/DT
growing/VBG
sales/NNS
sustained/VBN
by/IN
domestic/JJ
demand/NN
failed/VBD
to/TO
counter/VB
rising/VBG
material/NN
metal/NN
costs/NNS
and/CC
declining/VBG
profitability/NN
in/IN
overseas/JJ
construction/NN
,/,
Furukawa/NNP
said/VBD
./.
Rolled/VBN
copper/NN
product/NN
sales/NNS
were/VBD
major/JJ
contributors/NNS
to/TO
overall/JJ
sales/NNS
growth/NN
./.
Sales/NNS
by/IN
category/NN
rose/VBD
24/CD
%/NN
to/TO
35.23/CD
billion/CD
yen/NNS
,/,
reflecting/VBG
increased/VBN
production/NN
in/IN
automobile/NN
,/,
airconditioner/JJR
and/CC
electric/JJ
machine/NN
industries/NNS
,/,
which/WDT
are/VBP
major/JJ
users/NNS
of/IN
wire/NN
and/CC
cable/NN
products/NNS
./.
Sales/NNS
for/IN
electric/JJ
wires/NNS
and/CC
cables/NNS
rose/VBD
13.2/CD
%/NN
to/TO
153.93/CD
billion/CD
yen/NNS
./.
West/NNP
Germany/NNP
's/POS
cost-of-living/NN
index/NN
rose/VBD
a/DT
preliminary/JJ
0.3/CD
%/NN
in/IN
October/NNP
from/IN
September/NNP
and/CC
was/VBD
up/RB
3.3/CD
%/NN
from/IN
a/DT
year/NN
earlier/RB
,/,
the/DT
Federal/NNP
Statistics/NNPS
Office/NNP
in/IN
Wiesbaden/NNP
said/VBD
./.
The/DT
increase/NN
follows/VBZ
a/DT
monthly/JJ
rise/NN
of/IN
0.2/CD
%/NN
in/IN
September/NNP
from/IN
August/NNP
./.
Preliminary/JJ
cost-of-living/NN
data/NNS
for/IN
the/DT
current/JJ
month/NN
are/VBP
calculated/VBN
based/VBN
on/IN
inflation/NN
data/NNS
from/IN
the/DT
four/CD
largest/JJS
West/JJ
German/JJ
states/NNS
--/:
Baden-Wuerttemberg/NNP
,/,
North/NNP
Rhine-Westphalia/NNP
,/,
Bavaria/NNP
and/CC
Hesse/NNP
./.
The/DT
Philippine/JJ
government/NN
awarded/VBD
Finland/NN
's/POS
Outokumpu/NNP
Oy/NNP
the/DT
contract/NN
to/TO
upgrade/VB
the/DT
facilities/NNS
of/IN
Philippine/NNP
Associated/NNP
Smelting/NNP
&/CC
Refining/NNP
Corp./NNP
,/,
according/VBG
to/TO
documents/NNS
from/IN
National/NNP
Development/NNP
Corp./NNP
,/,
one/CD
of/IN
Philippine/NNP
company/NN
's/POS
owners/NNS
./.
The/DT
project/NN
costs/VBZ
$/$
46.8/CD
million/CD
,/,
and/CC
is/VBZ
intended/VBN
to/TO
boost/VB
the/DT
company/NN
's/POS
production/NN
capacity/NN
by/IN
25/CD
%/NN
to/TO
34,500/CD
metric/JJ
tons/NNS
of/IN
copper/NN
cathode/NN
a/DT
year/NN
./.
Outokumpu/NNP
is/VBZ
a/DT
mining/NN
,/,
trading/NN
and/CC
construction/NN
concern/NN
./.
September/NNP
sales/NNS
at/IN
major/JJ
Japanese/JJ
retail/NN
stores/NNS
rose/VBD
9.4/CD
%/NN
from/IN
a/DT
year/NN
earlier/RB
to/TO
1.388/CD
trillion/CD
yen/NNS
$/$
9.81/CD
billion/CD
the/DT
fifth-consecutive/JJ
monthly/JJ
increase/NN
,/,
the/DT
Ministry/NNP
of/IN
International/NNP
Trade/NNP
and/CC
Industry/NNP
announced/VBD
./.
According/VBG
to/TO
the/DT
ministry/NN
,/,
retail/JJ
sales/NNS
at/IN
major/JJ
department/NN
stores/NNS
were/VBD
up/RB
12/CD
%/NN
to/TO
745.7/CD
billion/CD
yen/NNS
,/,
while/IN
sales/NNS
at/IN
supermarkets/NNS
rose/VBD
6.7/CD
%/NN
to/TO
642/CD
billion/CD
yen/NNS
./.
September/NNP
's/POS
growth/NN
followed/VBD
a/DT
8.7/CD
%/NN
rise/NN
in/IN
July/NNP
and/CC
an/DT
8/CD
%/NN
increase/NN
in/IN
August/NNP
,/,
showing/VBG
continued/JJ
expansion/NN
at/IN
high/JJ
year-on-year/JJ
levels/NNS
./.
A/DT
ministry/NN
official/NN
said/VBD
the/DT
growth/NN
leads/VBZ
to/TO
the/DT
conclusion/NN
the/DT
adverse/JJ
effects/NNS
of/IN
a/DT
consumption/NN
tax/NN
introduced/VBN
in/IN
April/NNP
have/VBP
diminished/VBN
./.
Shell/NNP
Canada/NNP
Ltd./NNP
said/VBD
it/PRP
plans/VBZ
to/TO
build/VB
a/DT
lubricants/NNS
blending/NN
and/CC
packaging/NN
plant/NN
at/IN
Brockville/NNP
,/,
Ontario/NNP
,/,
with/IN
start-up/NNS
scheduled/VBN
for/IN
1992/CD
./.
A/DT
spokesman/NN
said/VBD
the/DT
plant/NN
,/,
which/WDT
will/MD
replace/VB
older/JJR
lubricant/NN
and/CC
grease/NN
manufacturing/NN
plants/NNS
in/IN
Montreal/NNP
and/CC
Toronto/NNP
,/,
will/MD
cost/VB
about/IN
50/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
42.5/CD
million/CD
Brockville/NNP
is/VBZ
about/IN
100/CD
miles/NNS
east/RB
of/IN
Toronto/NNP
./.
Shell/NNP
Canada/NNP
,/,
an/DT
oil/NN
and/CC
gas/NN
producer/NN
and/CC
marketer/NN
,/,
is/VBZ
a/DT
unit/NN
of/IN
Royal/NNP
Dutch\/Shell/NNP
Group/NNP
,/,
an/DT
Anglo-Dutch/JJ
concern/NN
./.
When/WRB
the/DT
going/VBG
gets/VBZ
tough/JJ
,/,
it/PRP
's/VBZ
tough/JJ
to/TO
trade/VB
stocks/NNS
in/IN
continental/JJ
Europe/NNP
./.
That/DT
's/VBZ
the/DT
troubling/JJ
conclusion/NN
reached/VBN
by/IN
many/JJ
international/JJ
investors/NNS
and/CC
money/NN
managers/NNS
angry/JJ
at/IN
the/DT
malfunctions/NNS
on/IN
Continental/JJ
stock/NN
exchanges/NNS
during/IN
last/JJ
week/NN
's/POS
global/JJ
market/NN
turbulence/NN
./.
They/PRP
say/VBP
the/DT
recent/JJ
market/NN
volatility/NN
has/VBZ
underscored/VBN
the/DT
shortcomings/NNS
of/IN
the/DT
way/NN
many/JJ
European/JJ
exchanges/NNS
trade/VBP
stocks/NNS
./.
The/DT
weaknesses/NNS
of/IN
Continental/JJ
exchanges/NNS
are/VBP
driving/VBG
some/DT
fund/NN
managers/NNS
to/TO
switch/VB
business/NN
to/TO
stocks/NNS
traded/VBN
on/IN
London/NNP
's/POS
stock/NN
exchange/NN
,/,
which/WDT
quotes/VBZ
firm/NN
trading/NN
prices/NNS
for/IN
about/IN
350/CD
blue-chip/JJ
issues/NNS
from/IN
12/CD
major/JJ
countries/NNS
./.
``/``
I/PRP
'm/VBP
not/RB
saying/VBG
London/NNP
covered/VBD
itself/PRP
in/IN
glory/NN
,/,
but/CC
the/DT
events/NNS
of/IN
the/DT
past/JJ
week/NN
have/VBP
certainly/RB
exposed/VBN
Europe/NNP
's/POS
weaknesses/NNS
,/,
''/''
says/VBZ
Stewart/NNP
Gilchrist/NNP
,/,
a/DT
director/NN
of/IN
Scottish/NNP
Amicable/NNP
Investment/NNP
Managers/NNPS
in/IN
Glasgow/NNP
,/,
Scotland/NNP
,/,
which/WDT
manages/VBZ
about/IN
#/#
6/CD
billion/CD
$/$
9.63/CD
billion/CD
institutional/JJ
money/NN
./.
He/PRP
says/VBZ
the/DT
problems/NNS
on/IN
European/JJ
exchanges/NNS
included/VBD
market-system/NN
breakdowns/NNS
,/,
delayed/JJ
execution/NN
of/IN
buy/JJ
and/CC
sell/JJ
orders/NNS
and/CC
trading/NN
suspensions/NNS
./.
``/``
The/DT
events/NNS
strengthen/VBP
London/NNP
's/POS
hand/NN
in/IN
becoming/VBG
the/DT
center/NN
for/IN
trading/VBG
European/JJ
stocks/NNS
,/,
''/''
Mr./NNP
Gilchrist/NNP
says/VBZ
./.
Unable/JJ
to/TO
unload/VB
a/DT
large/JJ
block/NN
of/IN
a/DT
French/JJ
blue-chip/JJ
company/NN
's/POS
shares/NNS
in/IN
Paris/NNP
for/IN
two/CD
days/NNS
last/JJ
week/NN
,/,
a/DT
frustrated/JJ
Scottish/NNP
Amicable/NNP
fund/NN
manager/NN
finally/RB
tossed/VBD
down/RP
her/PRP$
phone/NN
in/IN
disgust/NN
and/CC
called/VBD
James/NNP
Capel/NNP
&/CC
Co./NNP
,/,
a/DT
London/NNP
brokerage/NN
firm/NN
./.
The/DT
firm/NN
did/VBD
the/DT
trade/NN
in/IN
seconds/NNS
on/IN
the/DT
London/NNP
stock/NN
exchange/NN
's/POS
SEAQ/NNP
automated-quotation/NN
system/NN
./.
On/IN
so-called/JJ
Manic/NNP
Monday/NNP
,/,
Oct./NNP
16/CD
,/,
stock/NN
prices/NNS
plunged/VBD
across/IN
Europe/NNP
and/CC
trading/NN
problems/NNS
erupted/VBD
./.
London/NNP
had/VBD
some/DT
problems/NNS
,/,
too/RB
./.
The/DT
London/NNP
exchange/NN
's/POS
electronic/JJ
price-reporting/NN
system/NN
provided/VBD
only/RB
indicative/JJ
,/,
or/CC
non-firm/JJ
,/,
prices/NNS
for/IN
about/IN
40/CD
minutes/NNS
on/IN
Manic/NNP
Monday/NNP
./.
Some/DT
dealers/NNS
say/VBP
other/JJ
traders/NNS
were/VBD
n't/RB
picking/VBG
up/RP
their/PRP$
phones/NNS
./.
But/CC
London/NNP
's/POS
problems/NNS
were/VBD
nothing/NN
compared/VBN
with/IN
the/DT
Continent/NN
's/POS
./.
In/IN
Brussels/NNP
,/,
which/WDT
recently/RB
spent/VBD
millions/NNS
of/IN
dollars/NNS
on/IN
a/DT
computer-assisted/JJ
trading/NN
system/NN
,/,
disgusted/JJ
traders/NNS
watched/VBD
helplessly/RB
as/IN
a/DT
software/NN
failure/NN
before/IN
opening/NN
on/IN
Manic/NNP
Monday/NNP
prevented/VBD
trading/NN
for/IN
two/CD
days/NNS
./.
For/IN
48/CD
hours/NNS
,/,
no/DT
one/CD
had/VBD
any/DT
idea/NN
precisely/RB
how/WRB
much/JJ
his/PRP$
securities/NNS
were/VBD
worth/JJ
./.
By/IN
Wednesday/NNP
,/,
frustrated/JJ
Belgian/JJ
brokers/NNS
reopened/VBD
the/DT
market/NN
by/IN
using/VBG
the/DT
time-honored/JJ
method/NN
of/IN
quoting/VBG
stocks/NNS
with/IN
chalk/NN
on/IN
a/DT
blackboard/NN
./.
The/DT
Belgian/JJ
computer/NN
system/NN
finally/RB
was/VBD
repaired/VBN
and/CC
restarted/VBN
on/IN
Tuesday/NNP
of/IN
this/DT
week/NN
,/,
with/IN
the/DT
aid/NN
of/IN
Toronto/NNP
Stock/NNP
Exchange/NNP
officials/NNS
who/WP
developed/VBD
the/DT
system/NN
./.
In/IN
Frankfurt/NNP
,/,
which/WDT
only/RB
has/VBZ
a/DT
two-hour/JJ
daily/JJ
stock-trading/NN
session/NN
even/RB
in/IN
the/DT
best/JJS
of/IN
times/NNS
,/,
stocks/NNS
did/VBD
n't/RB
open/VB
for/IN
the/DT
first/JJ
45/CD
minutes/NNS
because/RB
of/IN
order/NN
imbalances/NNS
that/WDT
brokers/NNS
blame/VBP
on/IN
a/DT
wave/NN
of/IN
sell/JJ
orders/NNS
from/IN
small/JJ
investors/NNS
./.
As/IN
banks/NNS
processed/VBD
six-foot/JJ
telexes/NNS
of/IN
sell/JJ
orders/NNS
,/,
the/DT
crush/NN
led/VBD
to/TO
Manic/NNP
Monday/NNP
's/POS
worst/JJS
decline/NN
:/:
German/JJ
stocks/NNS
ended/VBD
down/RB
13/CD
%/NN
./.
Exchange/NN
officials/NNS
extended/VBD
trading/NN
hours/NNS
,/,
75/CD
minutes/NNS
on/IN
Monday/NNP
and/CC
65/CD
minutes/NNS
on/IN
Tuesday/NNP
,/,
to/TO
clear/VB
up/RP
order/NN
backlogs/NNS
./.
In/IN
France/NNP
,/,
more/JJR
than/IN
half/NN
the/DT
top/JJ
25/CD
blue-chip/JJ
stocks/NNS
--/:
including/VBG
such/JJ
giants/NNS
as/IN
BSN/NNP
and/CC
Elf/NNP
Aquitaine/NNP
--/:
did/VBD
n't/RB
open/VB
until/IN
Wall/NNP
Street/NNP
rallied/VBD
late/RB
in/IN
the/DT
European/JJ
trading/NN
day/NN
,/,
traders/NNS
say/VBP
./.
The/DT
rally/NN
transformed/VBD
some/DT
big/JJ
sell/NN
orders/NNS
into/IN
big/JJ
buy/NN
orders/NNS
,/,
solving/VBG
an/DT
order-imbalance/NN
problem/NN
./.
But/CC
by/IN
that/DT
time/NN
,/,
many/JJ
big/JJ
institutions/NNS
had/VBD
switched/VBN
business/NN
to/TO
London/NNP
./.
``/``
Belgium/NNP
was/VBD
closed/VBN
for/IN
two/CD
days/NNS
,/,
France/NNP
closed/VBD
for/IN
a/DT
couple/NN
of/IN
hours/NNS
,/,
Germany/NNP
was/VBD
stuck/VBN
./.
It/PRP
was/VBD
a/DT
nightmare/NN
,/,
''/''
says/VBZ
Susan/NNP
Noble/NNP
,/,
an/DT
investment/NN
manager/NN
at/IN
Robert/NNP
Fleming/NNP
Holdings/NNPS
Ltd./NNP
's/POS
International/NNP
Investment/NNP
Management/NNP
unit/NN
in/IN
London/NNP
./.
``/``
It/PRP
's/VBZ
very/RB
worrying/JJ
that/IN
these/DT
markets/NNS
ca/MD
n't/RB
cope/VB
./.
''/''
On/IN
Manic/NNP
Monday/NNP
,/,
the/DT
volume/NN
of/IN
German/JJ
shares/NNS
traded/VBN
in/IN
London/NNP
more/RBR
than/IN
tripled/VBD
to/TO
2.2/CD
million/CD
,/,
and/CC
the/DT
volume/NN
of/IN
French/JJ
shares/NNS
rose/VBD
48/CD
%/NN
./.
comparison/NN
,/,
German/JJ
domestic/JJ
stock/NN
volume/NN
in/IN
Frankfurt/NNP
only/RB
doubled/VBD
that/DT
day/NN
./.
The/DT
switch/NN
to/TO
the/DT
London/NNP
market/NN
during/IN
such/JJ
turbulent/JJ
times/NNS
is/VBZ
significant/JJ
./.
For/IN
one/CD
thing/NN
,/,
the/DT
size/NN
of/IN
the/DT
affected/JJ
market/NN
is/VBZ
enormous/JJ
--/:
the/DT
European/JJ
stock/NN
markets/NNS
account/VBP
for/IN
some/DT
22.5/CD
%/NN
of/IN
global/JJ
stock/NN
market/NN
capitalization/NN
,/,
with/IN
an/DT
estimated/VBN
value/NN
of/IN
$/$
2.175/CD
trillion/CD
,/,
according/VBG
to/TO
Morgan/NNP
Stanley/NNP
Capital/NNP
International/NNP
./.
The/DT
Continental/JJ
markets/NNS
alone/RB
contribute/VBP
about/IN
14.3/CD
%/NN
of/IN
estimated/VBN
world/NN
market/NN
capitalization/NN
of/IN
$/$
9.671/CD
trillion/CD
./.
Though/IN
the/DT
widely/RB
traded/VBN
shares/NNS
that/WDT
are/VBP
quoted/VBN
in/IN
London/NNP
account/NN
for/IN
only/RB
a/DT
small/JJ
portion/NN
of/IN
those/DT
totals/NNS
,/,
they/PRP
still/RB
are/VBP
the/DT
most/RBS
closely/RB
watched/JJ
stocks/NNS
and/CC
are/VBP
often/RB
viewed/VBN
as/IN
a/DT
barometer/NN
for/IN
the/DT
local/JJ
markets/NNS
generally/RB
./.
The/DT
switch/NN
to/TO
London/NNP
underscores/VBZ
the/DT
fact/NN
that/IN
despite/IN
the/DT
economic/JJ
restructuring/NN
associated/VBN
with/IN
European/NNP
Community/NNP
efforts/NNS
to/TO
develop/VB
a/DT
single/JJ
market/NN
by/IN
1992/CD
,/,
European/JJ
stock/NN
trading/NN
remains/VBZ
a/DT
highly/RB
fragmented/JJ
and/CC
very/RB
localized/JJ
activity/NN
./.
Against/IN
this/DT
backdrop/NN
,/,
one/CD
thing/NN
that/WDT
does/VBZ
n't/RB
seem/VB
likely/RB
to/TO
result/VB
from/IN
1992/CD
is/VBZ
a/DT
single/JJ
European/JJ
stock/NN
market/NN
./.
Rather/RB
,/,
there/EX
increasingly/RB
is/VBZ
a/DT
group/NN
of/IN
international/JJ
brokerage/NN
and/CC
trading/JJ
firms/NNS
that/WDT
operate/VBP
in/IN
most/JJS
European/JJ
financial/JJ
centers/NNS
--/:
including/VBG
European/JJ
giants/NNS
such/JJ
as/IN
Barclays/NNP
Bank/NNP
PLC/NNP
and/CC
Deutsche/NNP
Bank/NNP
,/,
as/RB
well/RB
as/IN
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
and/CC
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
of/IN
the/DT
U.S./NNP
and/CC
Japan/NNP
's/POS
Nomura/NNP
Securities/NNPS
Co/NNP
./.
These/DT
firms/NNS
,/,
which/WDT
often/RB
have/VBP
acquired/VBN
a/DT
local/JJ
brokerage/NN
firm/NN
,/,
are/VBP
calling/VBG
the/DT
shots/NNS
when/WRB
it/PRP
comes/VBZ
to/TO
deciding/VBG
in/IN
which/WDT
market/NN
to/TO
transact/VB
a/DT
trade/NN
./.
And/CC
senior/JJ
officials/NNS
of/IN
two/CD
U.S./NNP
securities/NNS
houses/NNS
say/VBP
they/PRP
switched/VBD
trades/NNS
in/IN
European/JJ
stocks/NNS
to/TO
the/DT
London/NNP
market/NN
last/JJ
week/NN
when/WRB
they/PRP
could/MD
n't/RB
unwind/VB
positions/NNS
on/IN
the/DT
Continent/NN
./.
Meantime/RB
,/,
brokers/NNS
on/IN
the/DT
Continent/NN
are/VBP
worried/JJ
,/,
too/RB
,/,
mostly/RB
by/IN
the/DT
potential/JJ
loss/NN
of/IN
business/NN
./.
``/``
I/PRP
would/MD
be/VB
much/RB
happier/JJR
if/IN
this/DT
volume/NN
German/JJ
stocks/NNS
Frankfurt/NNP
rather/RB
than/IN
London/NNP
,/,
''/''
says/VBZ
Dieter/NNP
Bauernfeind/NNP
,/,
head/NN
of/IN
international/JJ
equity/NN
sales/NNS
at/IN
Dresdner/NNP
Bank/NNP
in/IN
Frankfurt/NNP
./.
He/PRP
acknowledges/VBZ
that/IN
spreads/NNS
``/``
were/VBD
too/RB
wide/JJ
and/CC
volumes/NNS
too/RB
light/JJ
''/''
in/IN
the/DT
extreme/JJ
conditions/NNS
on/IN
Manic/NNP
Monday/NNP
./.
Already/RB
the/DT
Germans/NNPS
appear/VBP
to/TO
be/VB
acting/VBG
;/:
at/IN
a/DT
special/JJ
meeting/NN
on/IN
the/DT
day/NN
of/IN
the/DT
decline/NN
,/,
directors/NNS
of/IN
the/DT
Frankfurt/NNP
Stock/NNP
Exchange/NNP
voted/VBD
to/TO
extend/VB
their/PRP$
trading/NN
hours/NNS
,/,
although/IN
they/PRP
have/VBP
n't/RB
decided/VBN
when/WRB
or/CC
by/IN
how/WRB
much/JJ
./.
A/DT
Frankfurt/NNP
exchange/NN
official/NN
,/,
acknowledging/VBG
the/DT
brokers/NNS
'/POS
anxieties/NNS
,/,
says/VBZ
the/DT
market/NN
still/RB
feels/VBZ
it/PRP
``/``
functioned/VBD
OK/UH
during/IN
this/DT
crash/NN
./.
''/''
The/DT
Dutch/NNPS
,/,
who/WP
had/VBD
some/DT
trading/NN
problems/NNS
because/IN
of/IN
insufficient/JJ
computer/NN
capacity/NN
,/,
say/VBP
new/JJ
equipment/NN
to/TO
solve/VB
the/DT
problems/NNS
ought/MD
to/TO
be/VB
installed/VBN
within/IN
a/DT
month/NN
./.
Says/VBZ
a/DT
spokeswoman/NN
for/IN
the/DT
Brussels/NNP
Bourse/NNP
:/:
``/``
Nobody/NN
around/IN
here/RB
will/MD
tell/VB
you/PRP
they/PRP
are/VBP
happy/JJ
the/DT
system/NN
did/VBD
n't/RB
work/NN
./.
But/CC
it/PRP
's/VBZ
just/RB
one/CD
of/IN
those/DT
things/NNS
that/WDT
happened/VBD
./.
Investors/NNS
can/MD
be/VB
assured/VBN
now/RB
that/IN
this/DT
kind/NN
of/IN
problem/NN
can/MD
never/RB
occur/VB
again/RB
./.
''/''
But/CC
for/IN
others/NNS
,/,
the/DT
pledges/NNS
echo/VBP
the/DT
promises/NNS
made/VBN
after/IN
the/DT
1987/CD
stock/NN
crash/NN
,/,
when/WRB
similar/JJ
problems/NNS
led/VBD
many/JJ
markets/NNS
to/TO
develop/VB
the/DT
new/JJ
systems/NNS
that/WDT
performed/VBD
so/RB
badly/RB
last/JJ
week/NN
./.
``/``
They/PRP
all/DT
said/VBD
they/PRP
invested/VBD
huge/JJ
amounts/NNS
of/IN
money/NN
./.
But/CC
they/PRP
either/RB
did/VBD
n't/RB
buy/VB
the/DT
right/JJ
machines/NNS
or/CC
they/PRP
wasted/VBD
it/PRP
,/,
''/''
says/VBZ
Fleming/NNP
's/POS
Ms./NNP
Noble/NNP
./.
Canadian/JJ
steel/NN
production/NN
totaled/VBD
290,541/CD
metric/JJ
tons/NNS
in/IN
the/DT
week/NN
ended/VBD
Oct./NNP
21/CD
,/,
a/DT
5.1/CD
%/NN
increase/NN
from/IN
276,334/CD
tons/NNS
the/DT
previous/JJ
week/NN
but/CC
a/DT
7.2/CD
%/NN
decline/NN
from/IN
313,125/CD
tons/NNS
a/DT
year/NN
earlier/RB
,/,
Statistics/NNPS
Canada/NNP
said/VBD
./.
The/DT
federal/JJ
agency/NN
said/VBD
that/IN
in/IN
the/DT
year/NN
through/IN
Oct./NNP
21/CD
production/NN
totaled/VBD
12,573,758/CD
tons/NNS
,/,
up/RB
7.1/CD
%/NN
from/IN
11,742,368/CD
tons/NNS
./.
Trinova/NNP
Corp./NNP
said/VBD
it/PRP
will/MD
resume/VB
buying/VBG
back/RB
as/RB
many/JJ
as/IN
three/CD
million/CD
of/IN
its/PRP$
common/JJ
shares/NNS
under/IN
a/DT
program/NN
announced/VBN
two/CD
years/NNS
ago/RB
./.
Trinova/NNP
,/,
which/WDT
had/VBD
34.2/CD
million/CD
common/JJ
shares/NNS
outstanding/JJ
Sept./NNP
30/CD
,/,
had/VBD
repurchased/VBN
29,700/CD
shares/NNS
since/IN
October/NNP
1987/CD
before/IN
this/DT
latest/JJS
announcement/NN
./.
The/DT
company/NN
said/VBD
it/PRP
is/VBZ
n't/RB
making/VBG
a/DT
commitment/NN
to/TO
purchase/VB
a/DT
specific/JJ
number/NN
of/IN
shares/NNS
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
Trinova/NNP
closed/VBD
at/IN
$/$
32.125/CD
,/,
up/RB
12.5/CD
cents/NNS
./.
Calgene/NNP
Inc./NNP
and/CC
Gustafson/NNP
Inc./NNP
said/VBD
they/PRP
plan/VBP
a/DT
joint/JJ
project/NN
to/TO
develop/VB
biological/JJ
products/NNS
to/TO
control/VB
such/JJ
plant/NN
diseases/NNS
as/IN
aflatoxin/NN
,/,
a/DT
potent/JJ
cancer-causing/JJ
agent/NN
./.
Under/IN
the/DT
plan/NN
,/,
the/DT
companies/NNS
will/MD
use/VB
Calgene/NNP
's/POS
patented/JJ
technology/NN
to/TO
encapsulate/VB
microbes/NNS
such/JJ
as/IN
Bacillus/NN
subtilis/NNS
,/,
a/DT
bacterium/NN
,/,
to/TO
enhance/VB
their/PRP$
biological/JJ
activity/NN
against/IN
plant/NN
diseases/NNS
./.
Calgene/NNP
,/,
an/DT
agricultural/JJ
biotechnology/NN
concern/NN
,/,
said/VBD
initial/JJ
work/NN
will/MD
concentrate/VB
on/IN
a/DT
proprietary/JJ
strain/NN
of/IN
Bacillus/NN
subtilis/NNS
which/WDT
has/VBZ
shown/VBN
promise/NN
for/IN
controlling/VBG
aflatoxin/NN
./.
The/DT
strain/NN
was/VBD
discovered/VBN
by/IN
Morinaga/NNP
&/CC
Co./NNP
and/CC
licensed/VBN
to/TO
Gustafson/NNP
,/,
a/DT
unit/NN
of/IN
Uniroyal/NNP
Chemical/NNP
Co/NNP
./.
Aflatoxin/NN
is/VBZ
released/VBN
by/IN
molds/NNS
during/IN
grain/NN
and/CC
seed/NN
storage/NN
./.
The/DT
recent/JJ
appearance/NN
of/IN
aflatoxin/NN
in/IN
such/JJ
foods/NNS
as/IN
corn/NN
and/CC
peanut/NN
butter/NN
has/VBZ
sparked/VBN
public/JJ
concern/NN
and/CC
consumer/NN
scrutiny/NN
of/IN
food/NN
handling/NN
and/CC
storage/NN
procedures/NNS
./.
European/JJ
Community/NNP
employers/NNS
fear/VBP
that/IN
the/DT
EC/NNP
Commission/NNP
's/POS
plans/NNS
for/IN
a/DT
``/``
charter/NN
of/IN
fundamental/JJ
social/JJ
rights/NNS
''/''
is/VBZ
a/DT
danger/NN
to/TO
industrial/JJ
competitiveness/NN
./.
``/``
We/PRP
do/VBP
n't/RB
want/VB
Brussels/NNP
deciding/VBG
conditions/NNS
for/IN
workers/NNS
unless/IN
they/PRP
are/VBP
necessary/JJ
and/CC
useful/JJ
,/,
''/''
said/VBD
Zygmunt/NNP
Tyszkiewicz/NNP
,/,
secretary/NN
general/NN
of/IN
the/DT
employers/NNS
'/POS
confederation/NN
Unice/NNP
./.
Unice/NNP
--/:
an/DT
acronym/NN
for/IN
the/DT
Union/NNP
of/IN
Industrial/NNP
and/CC
Employers/NNPS
'/POS
Confederations/NNPS
of/IN
Europe/NNP
--/:
fears/VBZ
that/IN
the/DT
charter/NN
will/MD
force/VB
EC/NNP
countries/NNS
to/TO
adopt/VB
a/DT
single/JJ
pattern/NN
in/IN
labor/NN
relations/NNS
./.
Workers/NNS
and/CC
management/NN
,/,
Mr./NNP
Tyszkiewicz/NNP
said/VBD
,/,
would/MD
lose/VB
the/DT
``/``
flexibility/NN
and/CC
diversity/NN
''/''
that/WDT
has/VBZ
so/RB
far/RB
allowed/VBN
them/PRP
to/TO
adapt/VB
to/TO
local/JJ
conditions/NNS
and/CC
traditions/NNS
./.
The/DT
British/JJ
government/NN
also/RB
strongly/RB
opposes/VBZ
the/DT
charter/NN
in/IN
its/PRP$
current/JJ
form/NN
./.
It/PRP
argues/VBZ
,/,
as/RB
does/VBZ
Unice/NNP
,/,
that/IN
labor/NN
relations/NNS
are/VBP
best/RB
left/VBN
to/TO
be/VB
regulated/VBN
at/IN
the/DT
national/JJ
level/NN
./.
France/NNP
will/MD
propose/VB
a/DT
slightly/RB
watered-down/JJ
version/NN
of/IN
the/DT
charter/NN
to/TO
be/VB
discussed/VBN
by/IN
EC/NNP
social-affairs/NNS
ministers/NNS
on/IN
Monday/NNP
,/,
officials/NNS
said/VBD
./.
But/CC
the/DT
cosmetic/JJ
changes/NNS
are/VBP
n't/RB
expected/VBN
to/TO
win/VB
over/RP
Britain/NNP
./.
``/``
We/PRP
still/RB
have/VBP
serious/JJ
differences/NNS
with/IN
the/DT
text/NN
,/,
''/''
a/DT
British/JJ
official/NN
said/VBD
,/,
because/IN
it/PRP
provides/VBZ
for/IN
a/DT
``/``
regulation/NN
of/IN
the/DT
labor/NN
market/NN
./.
''/''
Mr./NNP
Tyszkiewicz/NNP
said/VBD
the/DT
charter/NN
would/MD
put/VB
poorer/JJR
EC/NNP
countries/NNS
such/JJ
as/IN
Spain/NNP
,/,
Greece/NNP
and/CC
Portugal/NNP
at/IN
a/DT
disadvantage/NN
./.
It/PRP
would/MD
force/VB
these/DT
countries/NNS
to/TO
introduce/VB
minimum/JJ
standards/NNS
for/IN
pay/NN
and/CC
working/NN
hours/NNS
,/,
and/CC
provide/VB
for/IN
collective/JJ
bargaining/NN
and/CC
worker/NN
``/``
participation/NN
''/''
in/IN
major/JJ
corporate/JJ
decisions/NNS
./.
This/DT
,/,
he/PRP
warned/VBD
,/,
would/MD
prevent/VB
these/DT
countries/NNS
from/IN
bridging/VBG
the/DT
difference/NN
with/IN
their/PRP$
richer/JJR
EC/NNP
brethren/NNS
./.
Indeed/RB
,/,
lower/JJR
wages/NNS
--/:
in/IN
Greece/NNP
,/,
they/PRP
are/VBP
a/DT
third/JJ
of/IN
the/DT
EC/NNP
average/NN
--/:
are/VBP
n't/RB
enough/RB
to/TO
offset/VB
higher/JJR
transport/NN
costs/NNS
and/CC
lower/JJR
productivity/NN
in/IN
the/DT
southern/JJ
countries/NNS
./.
Increasing/VBG
labor/NN
costs/NNS
,/,
Mr./NNP
Tyszkiewicz/NNP
argued/VBD
,/,
would/MD
only/RB
put/VB
the/DT
countries/NNS
at/IN
a/DT
further/JJ
disadvantage/NN
in/IN
competing/VBG
in/IN
the/DT
barrier-free/JJ
EC/NNP
market/NN
planned/VBN
for/IN
after/IN
1992/CD
./.
But/CC
the/DT
Unice/NNP
official/NN
said/VBD
that/IN
producing/VBG
a/DT
charter/NN
acceptable/JJ
to/TO
both/DT
Britain/NNP
and/CC
European/JJ
industry/NN
is/VBZ
n't/RB
an/DT
unattainable/JJ
goal/NN
./.
The/DT
charter/NN
would/MD
just/RB
have/VB
to/TO
be/VB
restricted/VBN
to/TO
a/DT
list/NN
of/IN
workers/NNS
'/POS
fundamental/JJ
rights/NNS
,/,
without/IN
seeking/VBG
to/TO
impose/VB
any/DT
norms/NNS
./.
A/DT
key/JJ
provision/NN
in/IN
the/DT
current/JJ
version/NN
of/IN
the/DT
charter/NN
would/MD
give/VB
the/DT
commission/NN
a/DT
mandate/NN
to/TO
produce/VB
an/DT
``/``
action/NN
program/NN
''/''
detailing/VBG
on/IN
what/WDT
points/NNS
EC/NNP
member/NN
states/NNS
would/MD
be/VB
required/VBN
to/TO
comply/VB
with/IN
the/DT
goals/NNS
set/VBN
out/RB
in/IN
the/DT
charter/NN
./.
This/DT
provision/NN
lies/VBZ
at/IN
the/DT
heart/NN
of/IN
the/DT
British/JJ
and/CC
Unice/NNP
fears/NNS
of/IN
``/``
social/JJ
engineering/NN
''/''
by/IN
the/DT
commission/NN
./.
One/CD
possible/JJ
political/JJ
solution/NN
,/,
an/DT
EC/NNP
official/NN
said/VBD
,/,
would/MD
be/VB
for/IN
the/DT
commission/NN
to/TO
present/VB
the/DT
action/NN
program/NN
in/IN
late/JJ
November/NNP
,/,
before/IN
the/DT
adoption/NN
of/IN
the/DT
charter/NN
at/IN
a/DT
summit/NN
of/IN
EC/NNP
governments/NNS
on/IN
Dec./NNP
8/CD
and/CC
9/CD
./.
This/DT
would/MD
leave/VB
Britain/NNP
free/JJ
to/TO
adopt/VB
the/DT
charter/NN
after/IN
having/VBG
rebutted/VBN
the/DT
action/NN
program/NN
./.
The/DT
charter/NN
was/VBD
approved/VBN
by/IN
the/DT
EC/NNP
Commission/NNP
on/IN
Sept./NNP
21/CD
./.
France/NNP
's/POS
Socialist/JJ
government/NN
,/,
which/WDT
currently/RB
holds/VBZ
the/DT
council/NN
's/POS
rotating/VBG
presidency/NN
,/,
is/VBZ
committed/VBN
to/TO
having/VBG
the/DT
charter/NN
adopted/VBN
by/IN
all/DT
12/CD
EC/NNP
states/NNS
before/IN
the/DT
end/NN
of/IN
1989/CD
--/:
the/DT
bicentennial/NN
of/IN
the/DT
French/JJ
revolution/NN
and/CC
its/PRP$
``/``
Universal/NNP
Declaration/NNP
of/IN
Human/NNP
Rights/NNPS
./.
''/''
Bruno/NNP
DeGol/NNP
,/,
chairman/NN
of/IN
DeGol/NNP
Brothers/NNPS
Lumber/NNP
,/,
Gallitzin/NNP
,/,
Pa./NNP
,/,
was/VBD
named/VBN
a/DT
director/NN
of/IN
this/DT
bank-holding/JJ
company/NN
,/,
expanding/VBG
the/DT
board/NN
to/TO
11/CD
members/NNS
./.
Sam/NNP
Ramirez/NNP
and/CC
his/PRP$
men/NNS
are/VBP
late/JJ
./.
They/PRP
pile/VBP
out/IN
of/IN
their/PRP$
truck/NN
and/CC
furiously/RB
begin/VBP
twisting/VBG
together/RB
steel/NN
pipes/NNS
linking/VBG
a/DT
giant/JJ
storage/NN
tank/NN
to/TO
the/DT
Sharpshooter/NNP
,/,
a/DT
freshly/RB
drilled/VBN
oil/NN
well/NN
two/CD
miles/NNS
deep/RB
./.
If/IN
they/PRP
finish/VBP
today/NN
,/,
the/DT
Sharpshooter/NNP
can/MD
pump/VB
tomorrow/NN
./.
One/CD
roustabout/NN
,/,
hanging/VBG
by/IN
his/PRP$
hands/NNS
from/IN
a/DT
ladder/NN
,/,
bounces/VBZ
his/PRP$
weight/NN
on/IN
a/DT
three-foot/JJ
wrench/NN
to/TO
loosen/VB
a/DT
stuck/JJ
fitting/NN
./.
``/``
We/PRP
've/VBP
been/VBN
putting/VBG
in/IN
long/JJ
hours/NNS
,/,
''/''
Mr./NNP
Ramirez/NNP
says/VBZ
--/:
six-day/JJ
weeks/NNS
and/CC
13-hour/JJ
days/NNS
for/IN
the/DT
last/JJ
two/CD
months/NNS
./.
A/DT
year/NN
ago/RB
,/,
when/WRB
almost/RB
nothing/NN
was/VBD
happening/VBG
amid/IN
these/DT
desolate/JJ
dunes/NNS
,/,
``/``
you/PRP
'd/MD
spend/VB
two/CD
days/NNS
working/VBG
and/CC
two/CD
days/NNS
in/IN
the/DT
yard/NN
,/,
''/''
he/PRP
recalls/VBZ
./.
After/IN
a/DT
three-year/JJ
nightmare/NN
of/IN
uncertain/JJ
oil/NN
prices/NNS
,/,
draconian/JJ
budget/NN
cuts/NNS
and/CC
sweeping/JJ
layoffs/NNS
,/,
fear/NN
is/VBZ
finally/RB
leaving/VBG
the/DT
oil/NN
patch/NN
./.
Independent/JJ
drillers/NNS
are/VBP
gingerly/RB
sinking/VBG
bits/NNS
into/IN
the/DT
Earth/NNP
's/POS
crust/NN
again/RB
./.
Some/DT
in/IN
Big/JJ
Oil/NN
are/VBP
easing/VBG
the/DT
grip/NN
on/IN
their/PRP$
wallets/NNS
./.
Investment/NN
capital/NN
is/VBZ
creeping/VBG
back/RB
,/,
and/CC
oil/NN
properties/NNS
are/VBP
fetching/VBG
more/JJR
./.
Oil-tool/NN
prices/NNS
are/VBP
even/RB
edging/VBG
up/RP
./.
What/WP
happened/VBD
?/.
In/IN
broadest/JJS
terms/NNS
,/,
stability/NN
has/VBZ
quietly/RB
settled/VBN
into/IN
international/JJ
oil/NN
markets/NNS
./.
Mideast/NN
politics/NNS
have/VBP
calmed/VBN
down/RP
and/CC
the/DT
squabbling/NN
within/IN
the/DT
Organization/NNP
of/IN
Petroleum/NNP
Exporting/NNP
Countries/NNPS
seems/VBZ
under/IN
control/NN
for/IN
now/RB
./.
``/``
The/DT
fundamentals/NNS
of/IN
supply/NN
and/CC
demand/NN
once/RB
again/RB
are/VBP
setting/VBG
oil/NN
prices/NNS
,/,
''/''
says/VBZ
Victor/NNP
Burk/NNP
,/,
an/DT
Arthur/NNP
Andersen/NNP
&/CC
Co./NNP
oil/NN
expert/NN
./.
After/IN
years/NNS
of/IN
wild/JJ
swings/NNS
,/,
oil/NN
prices/NNS
over/IN
the/DT
last/JJ
12/CD
months/NNS
have/VBP
settled/VBN
at/IN
around/IN
$/$
15/CD
to/TO
$/$
20/CD
a/DT
barrel/NN
./.
That/DT
is/VBZ
n't/RB
the/DT
$/$
40/CD
that/WDT
delighted/VBD
producers/NNS
a/DT
decade/NN
ago/RB
or/CC
the/DT
$/$
10/CD
that/WDT
pleased/VBD
users/NNS
a/DT
year/NN
ago/RB
./.
But/CC
it/PRP
is/VBZ
high/JJ
enough/RB
to/TO
prod/VB
the/DT
search/NN
for/IN
future/JJ
supplies/NNS
,/,
low/RB
enough/RB
to/TO
promote/VB
consumption/NN
and/CC
,/,
most/RBS
important/JJ
,/,
steady/JJ
enough/RB
for/IN
both/DT
producers/NNS
and/CC
users/NNS
to/TO
believe/VB
in/RP
./.
Not/RB
that/DT
oil/NN
suddenly/RB
is/VBZ
a/DT
sure/JJ
thing/NN
again/RB
./.
The/DT
current/JJ
equilibrium/NN
is/VBZ
fragile/JJ
and/CC
depends/VBZ
on/IN
steady/JJ
,/,
strong/JJ
demand/NN
and/CC
continued/JJ
relative/JJ
harmony/NN
within/IN
OPEC/NNP
,/,
producer/NN
of/IN
more/JJR
than/IN
40/CD
%/NN
of/IN
the/DT
non-Communist/JJ
world/NN
's/POS
crude/NN
./.
A/DT
recession/NN
or/CC
new/JJ
OPEC/NNP
blowup/NN
could/MD
put/VB
oil/NN
markets/NNS
right/RB
back/RB
in/IN
the/DT
soup/NN
./.
Also/RB
,/,
the/DT
new/JJ
stirrings/NNS
are/VBP
faint/JJ
,/,
and/CC
some/DT
question/VBP
their/PRP$
extent/NN
./.
Drilling/NN
activity/NN
is/VBZ
still/RB
far/RB
below/IN
eight/CD
years/NNS
ago/RB
,/,
there/EX
's/VBZ
no/DT
hiring/NN
surge/NN
and/CC
some/DT
companies/NNS
continue/VBP
to/TO
shrink/VB
./.
With/IN
all/PDT
this/DT
,/,
even/RB
the/DT
most/RBS
wary/JJ
oil/NN
men/NNS
agree/VBP
something/NN
has/VBZ
changed/VBN
./.
``/``
It/PRP
does/VBZ
n't/RB
appear/VB
to/TO
be/VB
getting/VBG
worse/RBR
./.
That/DT
in/IN
itself/PRP
has/VBZ
got/VBD
to/TO
cause/VB
people/NNS
to/TO
feel/VB
a/DT
little/RB
more/RBR
optimistic/JJ
,/,
''/''
says/VBZ
Glenn/NNP
Cox/NNP
,/,
the/DT
president/NN
of/IN
Phillips/NNP
Petroleum/NNP
Co/NNP
./.
Though/IN
modest/JJ
,/,
the/DT
change/NN
reaches/VBZ
beyond/IN
the/DT
oil/NN
patch/NN
,/,
too/RB
./.
The/DT
same/JJ
roller-coaster/NN
prices/NNS
that/WDT
halted/VBD
U.S./NNP
oil/NN
exploration/NN
and/CC
drove/VBD
many/JJ
veteran/JJ
oil/NN
men/NNS
and/CC
companies/NNS
out/IN
of/IN
the/DT
business/NN
also/RB
played/VBD
havoc/NN
with/IN
the/DT
nation/NN
's/POS
inflation/NN
rate/NN
,/,
the/DT
trade/NN
deficit/NN
and/CC
oil/NN
users/NNS
'/POS
corporate/JJ
and/CC
personal/JJ
budgets/NNS
./.
Now/RB
,/,
at/IN
least/JJS
some/DT
predictability/NN
has/VBZ
returned/VBN
,/,
for/IN
everyone/NN
from/IN
economists/NNS
to/TO
motorists/NNS
./.
Corporate/JJ
planners/NNS
can/MD
plan/VB
again/RB
./.
``/``
Management/NN
does/VBZ
n't/RB
want/VB
surprises/NNS
,/,
''/''
notes/VBZ
Jack/NNP
Zaves/NNP
,/,
who/WP
,/,
as/IN
fuel-services/NNS
director/NN
at/IN
American/NNP
Airlines/NNPS
,/,
buys/VBZ
some/DT
2.4/CD
billion/CD
gallons/NNS
of/IN
jet/NN
fuel/NN
a/DT
year/NN
./.
Prices/NNS
had/VBD
been/VBN
so/RB
unstable/JJ
that/IN
two/CD
years/NNS
ago/RB
Mr./NNP
Zaves/NNP
gave/VBD
up/RB
on/IN
long-term/JJ
forecasts/NNS
./.
And/CC
consumers/NNS
``/``
should/MD
be/VB
comfortable/JJ
,/,
''/''
adds/VBZ
W./NNP
Henson/NNP
Moore/NNP
,/,
U.S./NNP
deputy/NN
secretary/NN
of/IN
energy/NN
./.
``/``
I/PRP
do/VBP
n't/RB
see/VB
anything/NN
on/IN
the/DT
horizon/NN
that/WDT
could/MD
lead/VB
to/TO
a/DT
precipitous/JJ
rise/NN
in/IN
the/DT
price/NN
./.
''/''
The/DT
catalyst/NN
for/IN
all/PDT
this/DT
has/VBZ
been/VBN
OPEC/NNP
./.
About/IN
a/DT
year/NN
ago/RB
,/,
it/PRP
ended/VBD
an/DT
on-again/JJ
,/,
off-again/JJ
internal/JJ
production/NN
war/NN
that/WDT
had/VBD
put/VBN
prices/NNS
on/IN
a/DT
roller/NN
coaster/NN
and/CC
pitched/VBN
oil/NN
towns/NNS
from/IN
Houston/NNP
to/TO
Caracas/NNP
into/IN
recession/NN
./.
Saudi/NNP
Arabia/NNP
,/,
OPEC/NNP
's/POS
kingpin/NN
,/,
abandoned/VBD
a/DT
policy/NN
of/IN
flooding/VBG
the/DT
market/NN
to/TO
punish/VB
quota-cheaters/NNS
./.
About/IN
the/DT
same/JJ
time/NN
,/,
the/DT
Iran-Iraq/NNP
war/NN
,/,
which/WDT
was/VBD
roiling/VBG
oil/NN
markets/NNS
,/,
ended/VBD
./.
In/IN
addition/NN
,/,
global/JJ
petroleum/NN
demand/NN
has/VBZ
been/VBN
climbing/VBG
./.
It/PRP
is/VBZ
projected/VBN
to/TO
keep/VB
growing/VBG
by/IN
a/DT
million/CD
barrels/NNS
a/DT
day/NN
,/,
or/CC
up/RB
to/TO
2/CD
%/NN
annually/RB
,/,
for/IN
years/NNS
to/TO
come/VB
./.
For/IN
OPEC/NNP
,/,
that/WDT
's/VBZ
ideal/JJ
./.
The/DT
resulting/JJ
firm/JJ
prices/NNS
and/CC
stability/NN
``/``
will/MD
allow/VB
both/DT
producers/NNS
and/CC
consumers/NNS
to/TO
plan/VB
confidently/RB
,/,
''/''
says/VBZ
Saudi/NNP
Arabian/NNP
Oil/NNP
Minister/NNP
Hisham/NNP
Nazer/NNP
./.
OPEC/NNP
Secretary-General/NNP
Subroto/NNP
explains/VBZ
:/:
Consumers/NNS
offer/VBP
security/NN
of/IN
markets/NNS
,/,
while/IN
OPEC/NNP
provides/VBZ
security/NN
of/IN
supply/NN
./.
``/``
This/DT
is/VBZ
an/DT
opportune/JJ
time/NN
to/TO
find/VB
mutual/JJ
ways/NNS
price/NN
shocks/NNS
from/IN
happening/VBG
again/RB
,/,
''/''
he/PRP
says/VBZ
./.
To/TO
promote/VB
this/DT
balance/NN
,/,
OPEC/NNP
now/RB
is/VBZ
finally/RB
confronting/VBG
a/DT
long-simmering/JJ
internal/JJ
problem/NN
./.
At/IN
its/PRP$
November/NNP
meeting/NN
,/,
it/PRP
will/MD
try/VB
to/TO
revise/VB
its/PRP$
quotas/NNS
to/TO
satisfy/VB
Persian/NNP
Gulf/NNP
members/NNS
that/WDT
can/MD
produce/VB
far/RB
more/JJR
oil/NN
than/IN
their/PRP$
allotments/NNS
./.
Being/VBG
held/VBN
well/RB
below/IN
capacity/NN
greatly/RB
irritates/VBZ
them/PRP
,/,
and/CC
has/VBZ
led/VBN
to/TO
widespread/JJ
cheating/NN
./.
OPEC/NNP
has/VBZ
repeatedly/RB
raised/VBN
its/PRP$
self-imposed/JJ
production/NN
ceiling/NN
to/TO
legitimize/VB
some/DT
of/IN
that/DT
unauthorized/JJ
output/NN
./.
Oil/NN
ministers/NNS
now/RB
hope/VBP
to/TO
solve/VB
the/DT
issue/NN
for/IN
good/RB
through/IN
an/DT
Iranian/JJ
proposal/NN
that/WDT
gives/VBZ
a/DT
larger/JJR
share/NN
of/IN
output/NN
to/TO
countries/NNS
with/IN
surplus/NN
capacity/NN
and/CC
reduces/VBZ
the/DT
shares/NNS
of/IN
those/DT
that/WDT
ca/MD
n't/RB
produce/VB
more/JJR
anyway/RB
./.
But/CC
``/``
if/IN
they/PRP
walk/VBP
out/RB
without/IN
any/DT
effort/NN
to/TO
resolve/VB
their/PRP$
problem/NN
,/,
production/NN
could/MD
increase/VB
to/TO
23/CD
million/CD
or/CC
24/CD
million/CD
barrels/NNS
a/DT
day/NN
,/,
making/VBG
for/IN
a/DT
very/RB
troublesome/JJ
first/JJ
quarter/NN
,/,
''/''
warns/VBZ
Nordine/NNP
Ait-Laoussine/NNP
,/,
a/DT
consultant/NN
and/CC
former/JJ
Algerian/NNP
OPEC/NNP
delegate/NN
./.
That/DT
would/MD
send/VB
prices/NNS
plummeting/VBG
from/IN
what/WP
some/DT
gun-shy/JJ
U.S./NNP
oil/NN
executives/NNS
still/RB
regard/VB
as/IN
too/RB
low/JJ
a/DT
level/NN
./.
Patrick/NNP
J/NNP
./.
Early/NNP
,/,
president/NN
of/IN
Amoco/NNP
Corp./NNP
's/POS
oil-production/NN
unit/NN
,/,
says/VBZ
that/IN
despite/IN
recent/JJ
stability/NN
,/,
he/PRP
plans/VBZ
continued/JJ
tightening/NN
of/IN
costs/NNS
and/CC
exploration/NN
spending/NN
./.
The/DT
view/NN
of/IN
some/DT
others/NNS
in/IN
Big/JJ
Oil/NN
,/,
he/PRP
maintains/VBZ
,/,
``/``
is/VBZ
very/RB
much/RB
{/(
similar/JJ
to/TO
}/)
Amoco/NNP
's/POS
outlook/NN
./.
''/''
Just/RB
this/DT
week/NN
Mobil/NNP
Corp./NNP
disclosed/VBD
new/JJ
cutbacks/NNS
in/IN
its/PRP$
domestic/JJ
exploration/NN
and/CC
production/NN
operations/NNS
./.
Out/RB
here/RB
on/IN
the/DT
Querecho/NNP
Plains/NNPS
of/IN
New/NNP
Mexico/NNP
,/,
however/RB
,/,
the/DT
mood/NN
is/VBZ
more/RBR
upbeat/JJ
;/:
trucks/NNS
rumble/VBP
along/IN
the/DT
dusty/JJ
roads/NNS
and/CC
burly/JJ
men/NNS
in/IN
hard/JJ
hats/NNS
sweat/VBP
and/CC
swear/VBP
through/IN
the/DT
afternoon/NN
sun/NN
./.
Santa/NNP
Fe/NNP
Energy/NNP
Co./NNP
,/,
a/DT
unit/NN
of/IN
Santa/NNP
Fe/NNP
Southern/NNP
Pacific/NNP
Co./NNP
,/,
bought/VBD
from/IN
Amoco/NNP
the/DT
rights/NNS
that/WDT
allowed/VBD
it/PRP
to/TO
drill/VB
the/DT
Sharpshooter/NNP
./.
A/DT
mile/NN
and/CC
a/DT
half/NN
away/RB
looms/VBZ
the/DT
150-foot-tall/JJ
rig/NN
of/IN
the/DT
Sniper/NNP
,/,
due/JJ
to/TO
be/VB
pumping/VBG
by/IN
December/NNP
./.
``/``
Talk/NN
is/VBZ
that/IN
everybody/NN
is/VBZ
going/VBG
to/TO
drill/VB
more/JJR
wells/NNS
,/,
''/''
says/VBZ
foreman/NN
Tommy/NNP
Folsom/NNP
./.
Santa/NNP
Fe/NNP
aims/VBZ
to/TO
drill/VB
about/IN
30/CD
wells/NNS
in/IN
this/DT
area/NN
in/IN
1989/CD
and/CC
double/VB
that/DT
next/JJ
year/NN
./.
It/PRP
is/VBZ
more/RBR
aggressive/JJ
than/IN
most/JJS
,/,
but/CC
it/PRP
is/VBZ
n't/RB
the/DT
only/JJ
company/NN
with/IN
a/DT
new/JJ
attitude/NN
,/,
as/IN
it/PRP
found/VBD
when/WRB
it/PRP
went/VBD
looking/VBG
for/IN
a/DT
partner/NN
for/IN
the/DT
Sharpshooter/NNP
./.
``/``
We/PRP
went/VBD
to/TO
six/CD
companies/NNS
over/IN
two/CD
days/NNS
pitching/VBG
the/DT
prospect/NN
,/,
''/''
says/VBZ
Tim/NNP
Parker/NNP
,/,
a/DT
Santa/NNP
Fe/NNP
exploration/NN
manager/NN
./.
``/``
Five/CD
were/VBD
interested/JJ
./.
''/''
Mitchell/NNP
Energy/NNP
&/CC
Development/NNP
Corp./NNP
became/VBD
the/DT
partner/NN
,/,
ponying/VBG
up/RP
more/JJR
than/IN
half/NN
of/IN
the/DT
$/$
600,000/CD
in/IN
drilling/NN
and/CC
start-up/JJ
costs/NNS
./.
Mitchell/NNP
will/MD
get/VB
a/DT
half-interest/NN
in/IN
the/DT
oil/NN
./.
``/``
A/DT
kind/NN
of/IN
no-mistakes/JJ
mentality/NN
''/''
had/VBD
been/VBN
stifling/VBG
activity/NN
,/,
says/VBZ
Don/NNP
Covey/NNP
,/,
Mitchell/NNP
's/POS
oil/NN
exploration/NN
chief/NN
./.
Now/RB
``/``
everybody/NN
is/VBZ
a/DT
lot/RB
more/RBR
optimistic/JJ
./.
''/''
One/CD
attraction/NN
for/IN
oil/NN
operators/NNS
here/RB
and/CC
in/IN
other/JJ
fields/NNS
is/VBZ
the/DT
bargain-basement/NN
cost/NN
of/IN
drilling/NN
and/CC
equipment/NN
,/,
reflecting/VBG
service/NN
companies/NNS
'/POS
hunger/NN
for/IN
work/NN
./.
Kadane/NNP
Oil/NNP
Co./NNP
,/,
a/DT
small/JJ
Texas/NNP
independent/NN
,/,
is/VBZ
currently/RB
drilling/VBG
two/CD
wells/NNS
itself/PRP
and/CC
putting/VBG
money/NN
into/IN
three/CD
others/NNS
./.
One/CD
of/IN
its/PRP$
wells/NNS
,/,
in/IN
southwestern/JJ
Oklahoma/NNP
,/,
is/VBZ
a/DT
``/``
rank/JJ
wildcat/NN
,/,
''/''
a/DT
risky/JJ
well/NN
where/WRB
oil/NN
previously/RB
has/VBZ
n't/RB
been/VBN
found/VBN
./.
``/``
At/IN
this/DT
price/NN
,/,
$/$
18/CD
plus/CC
or/CC
minus/CC
,/,
and/CC
with/IN
costs/NNS
being/VBG
significantly/RB
less/JJR
than/IN
they/PRP
were/VBD
several/JJ
years/NNS
ago/RB
,/,
the/DT
economics/NNS
are/VBP
pretty/RB
good/JJ
,/,
''/''
says/VBZ
George/NNP
Kadane/NNP
,/,
head/NN
of/IN
the/DT
company/NN
./.
``/``
If/IN
you/PRP
know/VBP
you/PRP
've/VBP
got/VBN
stability/NN
in/IN
price/NN
,/,
you/PRP
can/MD
do/VB
things/NNS
you/PRP
would/MD
n't/RB
do/VB
with/IN
the/DT
volatility/NN
of/IN
the/DT
past/JJ
few/JJ
years/NNS
./.
''/''
The/DT
activity/NN
is/VBZ
enough/JJ
to/TO
move/VB
some/DT
oil-service/NN
prices/NNS
back/RB
up/RP
a/DT
little/RB
./.
Some/DT
drill-bit/NN
prices/NNS
have/VBP
risen/VBN
5/CD
%/NN
in/IN
the/DT
past/JJ
month/NN
./.
In/IN
the/DT
Gulf/NNP
of/IN
Mexico/NNP
,/,
a/DT
boat/NN
to/TO
deliver/VB
supplies/NNS
to/TO
offshore/JJ
rigs/NNS
now/RB
costs/VBZ
around/IN
$/$
3,000/CD
a/DT
day/NN
,/,
up/RB
nearly/RB
60/CD
%/NN
since/IN
June/NNP
./.
Some/DT
service/NN
boats/NNS
recently/RB
were/VBD
auctioned/VBN
for/IN
about/IN
$/$
1.7/CD
million/CD
each/DT
,/,
up/RB
from/IN
less/JJR
than/IN
$/$
1/CD
million/CD
two/CD
years/NNS
ago/RB
./.
At/IN
the/DT
bottom/NN
of/IN
the/DT
slump/NN
,/,
Schlumberger/NNP
Inc./NNP
was/VBD
discounting/VBG
75/CD
%/NN
on/IN
an/DT
electronic/JJ
evaluation/NN
of/IN
a/DT
well/NN
;/:
now/RB
it/PRP
discounts/VBZ
about/IN
50/CD
%/NN
,/,
drillers/NNS
say/VBP
./.
Still/RB
,/,
there/EX
is/VBZ
money/NN
to/TO
be/VB
made/VBN
./.
Most/JJS
oil/NN
companies/NNS
,/,
when/WRB
they/PRP
set/VBP
exploration/NN
and/CC
production/NN
budgets/NNS
for/IN
this/DT
year/NN
,/,
forecast/VBP
revenue/NN
of/IN
$/$
15/CD
for/IN
each/DT
barrel/NN
of/IN
crude/NN
produced/VBN
./.
Prices/NNS
have/VBP
averaged/VBN
more/JJR
than/IN
$/$
2/CD
a/DT
barrel/NN
higher/JJR
than/IN
that/DT
--/:
not/RB
a/DT
windfall/NN
,/,
but/CC
at/IN
least/JJS
a/DT
pleasant/JJ
bonus/NN
for/IN
them/PRP
./.
So/RB
,/,
according/VBG
to/TO
a/DT
Dun/NNP
&/CC
Bradstreet/NNP
Corp./NNP
survey/NN
,/,
companies/NNS
that/WDT
had/VBD
been/VBN
refusing/VBG
to/TO
spend/VB
even/RB
their/PRP$
very/RB
conservative/JJ
budgets/NNS
may/MD
loosen/VB
up/RB
before/IN
year/NN
end/NN
./.
It/PRP
says/VBZ
40/CD
%/NN
of/IN
those/DT
surveyed/VBN
report/VBP
that/IN
1989/CD
exploration/NN
spending/NN
will/MD
exceed/VB
1988/CD
's/POS
./.
Funds/NNS
for/IN
drilling/NN
may/MD
inch/VB
up/RB
more/RBR
next/JJ
year/NN
if/IN
oil/NN
prices/NNS
stay/VBP
stable/JJ
./.
Texaco/NNP
,/,
thinking/VBG
in/IN
terms/NNS
of/IN
$/$
18-to-$19/JJ
oil/NN
for/IN
1990/CD
,/,
may/MD
raise/VB
spending/NN
,/,
especially/RB
for/IN
low-risk/JJ
prospects/NNS
,/,
an/DT
official/NN
says/VBZ
./.
Outside/JJ
investors/NNS
,/,
scarce/JJ
since/IN
'86/CD
,/,
are/VBP
edging/VBG
back/RB
./.
Although/IN
``/``
it/PRP
's/VBZ
still/RB
difficult/JJ
to/TO
raise/VB
money/NN
for/IN
a/DT
pure/JJ
wildcat/NN
program/NN
,/,
''/''
says/VBZ
William/NNP
Thomas/NNP
,/,
a/DT
Texas/NNP
Commerce/NNP
Bank/NNP
official/NN
in/IN
Houston/NNP
,/,
``/``
institutions/NNS
are/VBP
starting/VBG
to/TO
see/VB
there/EX
are/VBP
cycles/NNS
to/TO
these/DT
things/NNS
,/,
and/CC
this/DT
one/NN
is/VBZ
beginning/VBG
to/TO
turn/VB
./.
''/''
Wall/NNP
Street/NNP
generally/RB
likes/VBZ
the/DT
industry/NN
again/RB
./.
The/DT
appetite/NN
for/IN
oil-service/NN
stocks/NNS
has/VBZ
been/VBN
especially/RB
strong/JJ
,/,
although/IN
some/DT
got/VBD
hit/VBN
yesterday/NN
when/WRB
Shearson/NNP
Lehman/NNP
Hutton/NNP
cut/VBD
its/PRP$
short-term/JJ
investment/NN
ratings/NNS
on/IN
them/PRP
./.
Contractors/NNS
such/JJ
as/IN
Parker/NNP
Drilling/NNP
Co./NNP
are/VBP
raising/VBG
cash/NN
again/RB
through/IN
stock/NN
offerings/NNS
,/,
and/CC
for/IN
the/DT
first/JJ
time/NN
in/IN
years/NNS
,/,
two/CD
oil-service/NN
companies/NNS
recently/RB
went/VBD
public/JJ
./.
They/PRP
are/VBP
Grace/NNP
Energy/NNP
Corp./NNP
of/IN
Dallas/NNP
and/CC
Marine/NNP
Drilling/NNP
Co./NNP
of/IN
Houston/NNP
./.
Most/JJS
oil/NN
companies/NNS
are/VBP
still/RB
reluctant/JJ
to/TO
add/VB
to/TO
the/DT
office/NN
and/CC
professional/JJ
staffs/NNS
they/PRP
slashed/VBD
so/RB
deeply/RB
./.
But/CC
a/DT
few/JJ
new/JJ
spots/NNS
are/VBP
opening/VBG
./.
Arthur/NNP
Andersen/NNP
,/,
the/DT
accounting/NN
firm/NN
,/,
has/VBZ
increased/VBN
its/PRP$
energy/NN
staff/NN
10/CD
%/NN
in/IN
a/DT
year/NN
./.
Out/IN
in/IN
the/DT
oil/NN
fields/NNS
,/,
if/IN
activity/NN
picks/VBZ
up/RB
much/RB
more/RBR
,/,
shortages/NNS
could/MD
appear/VB
because/IN
so/RB
many/JJ
roughnecks/NNS
,/,
roustabouts/NNS
and/CC
others/NNS
left/VBD
after/IN
the/DT
crash/NN
./.
Already/RB
``/``
it/PRP
's/VBZ
hard/JJ
to/TO
get/VB
people/NNS
./.
They/PRP
're/VBP
so/RB
busy/JJ
,/,
''/''
says/VBZ
one/CD
Santa/NNP
Fe/NNP
drilling/NN
foreman/NN
here/RB
./.
For/IN
most/JJS
field/NN
workers/NNS
,/,
it/PRP
's/VBZ
about/IN
time/NN
./.
Mr./NNP
Ramirez/NNP
,/,
who/WP
arrived/VBD
late/RB
at/IN
the/DT
Sharpshooter/NNP
with/IN
his/PRP$
crew/NN
because/IN
he/PRP
had/VBD
started/VBN
early/RB
in/IN
the/DT
morning/NN
setting/VBG
up/RP
tanks/NNS
at/IN
another/DT
site/NN
,/,
just/RB
got/VBD
the/DT
first/JJ
raise/NN
he/PRP
can/MD
remember/VB
in/IN
eight/CD
years/NNS
,/,
to/TO
$/$
8.50/CD
an/DT
hour/NN
from/IN
$/$
8/CD
./.
Norman/NNP
Young/NNP
,/,
a/DT
``/``
mud-logger/NN
''/''
at/IN
the/DT
Sniper/NNP
well/NN
,/,
has/VBZ
worked/VBN
all/DT
but/CC
about/IN
nine/CD
days/NNS
of/IN
this/DT
year/NN
./.
Last/JJ
year/NN
,/,
``/``
I/PRP
was/VBD
off/RP
a/DT
straight/JJ
month/NN
,/,
then/RB
one/CD
time/NN
for/IN
two/CD
to/TO
three/CD
weeks/NNS
and/CC
another/DT
two/CD
to/TO
three/CD
weeks/NNS
,/,
''/''
he/PRP
says/VBZ
./.
Butch/NNP
McCarty/NNP
,/,
who/WP
sells/VBZ
oil-field/NN
equipment/NN
for/IN
Davis/NNP
Tool/NNP
Co./NNP
,/,
is/VBZ
also/RB
busy/JJ
./.
A/DT
native/NN
of/IN
the/DT
area/NN
,/,
he/PRP
is/VBZ
back/RB
now/RB
after/IN
riding/VBG
the/DT
oil-field/NN
boom/NN
to/TO
the/DT
top/NN
,/,
then/RB
surviving/VBG
the/DT
bust/NN
running/VBG
an/DT
Oklahoma/NNP
City/NNP
convenience/NN
store/NN
./.
``/``
First/JJ
year/NN
I/PRP
came/VBD
back/RB
there/RB
was/VBD
n't/RB
any/DT
work/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
I/PRP
think/VBP
it/PRP
's/VBZ
on/IN
the/DT
way/NN
back/RB
now/RB
./.
But/CC
it/PRP
wo/MD
n't/RB
be/VB
a/DT
boom/NN
again/RB
./.
No/DT
major/JJ
booms/NNS
,/,
no/DT
major/JJ
setbacks/NNS
,/,
''/''
he/PRP
predicts/VBZ
./.
Business/NN
has/VBZ
been/VBN
good/JJ
enough/RB
that/IN
he/PRP
just/RB
took/VBD
a/DT
spur-of-the-moment/JJ
weekend/NN
trip/NN
to/TO
the/DT
mountain/NN
area/NN
of/IN
Cloudcroft/NNP
,/,
something/NN
``/``
I/PRP
have/VBP
n't/RB
done/VBN
in/IN
years/NNS
./.
''/''
The/DT
figures/NNS
confirm/VBP
that/IN
there/EX
certainly/RB
is/VBZ
n't/RB
any/DT
drilling/NN
boom/NN
./.
Only/RB
14,505/CD
wells/NNS
,/,
including/VBG
4,900/CD
dry/JJ
holes/NNS
,/,
were/VBD
drilled/VBN
for/IN
oil/NN
and/CC
natural/JJ
gas/NN
in/IN
the/DT
U.S./NNP
in/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
the/DT
year/NN
,/,
down/RB
22.4/CD
%/NN
from/IN
the/DT
like/JJ
1988/CD
period/NN
./.
But/CC
that/DT
was/VBD
off/RP
less/JJR
than/IN
at/IN
midyear/NN
,/,
when/WRB
completions/NNS
lagged/VBN
by/IN
27.1/CD
%/NN
./.
And/CC
the/DT
number/NN
of/IN
rigs/NNS
active/JJ
in/IN
the/DT
U.S./NNP
is/VBZ
inching/VBG
up/RP
./.
According/VBG
to/TO
Baker/NNP
Hughes/NNP
Inc./NNP
,/,
992/CD
rotary/JJ
rigs/NNS
were/VBD
at/IN
work/NN
in/IN
the/DT
U.S./NNP
last/JJ
week/NN
,/,
up/RB
from/IN
the/DT
year-ago/JJ
count/NN
of/IN
933/CD
./.
1981/CD
,/,
before/IN
the/DT
bust/NN
,/,
the/DT
rig/NN
count/NN
was/VBD
above/IN
4,000/CD
./.
Global/JJ
offshore-rig/NN
use/NN
shows/VBZ
a/DT
similar/JJ
upward/JJ
trend/NN
./.
Some/DT
equipment/NN
going/VBG
to/TO
work/VB
is/VBZ
almost/RB
new/JJ
./.
Grace/NNP
Energy/NNP
just/RB
two/CD
weeks/NNS
ago/RB
hauled/VBD
a/DT
rig/NN
here/RB
500/CD
miles/NNS
from/IN
Caspar/NNP
,/,
Wyo./NNP
,/,
to/TO
drill/VB
the/DT
Bilbrey/NNP
well/RB
,/,
a/DT
15,000-foot/JJ
,/,
$/$
1-million-plus/JJ
natural/JJ
gas/NN
well/NN
./.
The/DT
rig/NN
was/VBD
built/VBN
around/IN
1980/CD
,/,
but/CC
has/VBZ
drilled/VBN
only/RB
two/CD
wells/NNS
,/,
the/DT
last/JJ
in/IN
1982/CD
./.
Until/IN
now/RB
it/PRP
had/VBD
sat/VBN
idle/JJ
./.
For/IN
Zel/NNP
Herring/NNP
,/,
owner/NN
and/CC
a/DT
cook/NN
at/IN
the/DT
Sandhills/NNP
Luncheon/NNP
Cafe/NNP
,/,
a/DT
tin/NN
building/NN
in/IN
midtown/NN
,/,
all/PDT
this/DT
has/VBZ
made/VBN
for/IN
a/DT
very/RB
good/JJ
year/NN
./.
After/IN
11:30/CD
a.m./RB
or/CC
so/RB
``/``
we/PRP
have/VBP
them/PRP
standing/VBG
and/CC
waiting/VBG
,/,
''/''
she/PRP
says/VBZ
,/,
as/IN
she/PRP
whips/VBZ
out/RP
orders/NNS
for/IN
hamburgers/NNS
and/CC
the/DT
daily/JJ
special/NN
grilled/JJ
roast/NN
beef/NN
,/,
cheese/NN
and/CC
jalapeno/JJ
pepper/NN
sandwich/NN
on/IN
whole/JJ
wheat/NN
,/,
potato/NN
salad/NN
,/,
baked/JJ
beans/NNS
and/CC
pudding/NN
,/,
plus/CC
coffee/NN
or/CC
iced/JJ
tea/NN
./.
Price/NN
:/:
$/$
4.50/CD
Mike/NNP
Huber/NNP
,/,
a/DT
roustabout/NN
,/,
is/VBZ
even/RB
making/VBG
it/PRP
in/IN
his/PRP$
new/JJ
career/NN
as/IN
an/DT
entrepreneur/NN
./.
He/PRP
started/VBD
Arrow/NNP
Roustabouts/NNPS
Inc./NNP
a/DT
year/NN
ago/RB
with/IN
a/DT
loan/NN
from/IN
a/DT
friend/NN
,/,
since/RB
repaid/VBN
,/,
and/CC
now/RB
employs/VBZ
15/CD
./.
He/PRP
got/VBD
three/CD
trucks/NNS
and/CC
a/DT
backhoe/NN
cheap/RB
./.
``/``
I/PRP
want/VBP
to/TO
add/VB
one/CD
more/JJR
truck/NN
,/,
''/''
Mr./NNP
Huber/NNP
says/VBZ
./.
I/PRP
sense/VBP
that/IN
it/PRP
's/VBZ
going/VBG
to/TO
continue/VB
to/TO
grow/VB
./.
That/DT
's/VBZ
the/DT
word/NN
./.
The/DT
word/NN
is/VBZ
out/RP
./.
''/''
Eight/CD
people/NNS
,/,
including/VBG
a/DT
supervisor/NN
of/IN
Security/NNP
Pacific/NNP
National/NNP
Bank/NNP
's/POS
central/JJ
vault/NN
,/,
were/VBD
arrested/VBN
in/IN
an/DT
investigation/NN
of/IN
an/DT
alleged/VBN
drug/NN
money-laundering/NN
operation/NN
./.
The/DT
U.S./NNP
Attorney/NNP
's/POS
office/NN
filed/VBD
a/DT
criminal/JJ
complaint/NN
against/IN
six/CD
bank/NN
employees/NNS
charging/VBG
them/PRP
with/IN
conspiracy/NN
in/IN
the/DT
scheme/NN
,/,
which/WDT
apparently/RB
was/VBD
capable/JJ
of/IN
handling/VBG
millions/NNS
of/IN
dollars/NNS
a/DT
week/NN
by/IN
funneling/VBG
cash/NN
through/IN
fictitious/JJ
bank/NN
accounts/NNS
./.
Two/CD
other/JJ
men/NNS
also/RB
were/VBD
charged/VBN
with/IN
participating/VBG
in/IN
the/DT
operation/NN
./.
The/DT
arrests/NNS
capped/VBD
a/DT
four-month/JJ
investigation/NN
by/IN
the/DT
Internal/NNP
Revenue/NNP
Service/NNP
,/,
the/DT
U.S./NNP
Attorney/NNP
's/POS
office/NN
and/CC
a/DT
Security/NNP
Pacific/NNP
internal/JJ
investigation/NN
team/NN
./.
Walter/NNP
S./NNP
Fisher/NNP
,/,
executive/NN
vice/NN
president/NN
and/CC
general/JJ
auditor/NN
of/IN
the/DT
bank/NN
's/POS
parent/NN
,/,
Security/NNP
Pacific/NNP
Corp./NNP
,/,
said/VBD
no/DT
bank/NN
funds/NNS
were/VBD
at/IN
risk/NN
during/IN
the/DT
investigation/NN
./.
Arrested/VBN
were/VBD
Jose/NNP
O./NNP
Lopez/NNP
,/,
27/CD
years/NNS
old/JJ
,/,
of/IN
Whittier/NNP
,/,
Calif./NNP
,/,
the/DT
vault/NN
supervisor/NN
;/:
Carlos/NNP
O./NNP
Huerta/NNP
,/,
29/CD
,/,
of/IN
La/NNP
Puente/NNP
;/:
Luis/NNP
A./NN
Arroyo/NNP
,/,
36/CD
,/,
of/IN
Los/NNP
Angeles/NNP
;/:
Ignacio/NNP
Rojas/NNP
Jr./NNP
,/,
32/CD
,/,
of/IN
Baldwin/NNP
Park/NNP
;/:
Doris/NNP
Moreno/NNP
,/,
37/CD
,/,
of/IN
Bell/NNP
Gardens/NNP
;/:
and/CC
Ana/NNP
L./NNP
Azucena/NNP
,/,
27/CD
,/,
of/IN
Huntington/NNP
Park/NNP
./.
Geno/NNP
M./NNP
Apicella/NNP
,/,
27/CD
,/,
of/IN
Los/NNP
Angeles/NNP
,/,
and/CC
Terrell/NNP
N./NNP
Madison/NNP
,/,
27/CD
,/,
of/IN
Hawthorne/NN
,/,
were/VBD
also/RB
charged/VBN
with/IN
participating/VBG
in/IN
the/DT
conspiracy/NN
./.
Each/DT
defendant/NN
faces/VBZ
a/DT
possible/JJ
sentence/NN
of/IN
20/CD
years/NNS
in/IN
prison/NN
and/CC
$/$
250,000/CD
in/IN
fines/NNS
./.
The/DT
defendants/NNS
could/MD
n't/RB
immediately/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
S.A./NNP
Brewing/NNP
Holdings/NNPS
Ltd./NNP
began/VBD
laying/VBG
the/DT
groundwork/NN
to/TO
launch/VB
a/DT
rival/JJ
offer/NN
for/IN
Bond/NNP
Corp/NNP
./.
Holdings/NNPS
Ltd./NNP
's/POS
Australian/JJ
brewing/NN
operations/NNS
./.
Such/JJ
an/DT
offer/NN
could/MD
torpedo/VB
a/DT
plan/NN
by/IN
Lion/NNP
Nathan/NNP
Ltd./NNP
of/IN
New/NNP
Zealand/NNP
to/TO
acquire/VB
half/PDT
the/DT
brewing/NN
interests/NNS
./.
But/CC
it/PRP
would/MD
probably/RB
increase/VB
the/DT
amount/NN
of/IN
cash/NN
that/IN
debt-ridden/JJ
Bond/NNP
Corp./NNP
would/MD
earn/VB
from/IN
the/DT
transaction/NN
./.
Australia/NNP
's/POS
National/NNP
Companies/NNPS
and/CC
Securities/NNPS
Commission/NNP
said/VBD
it/PRP
will/MD
allow/VB
S.A./NNP
Brewing/NNP
to/TO
acquire/VB
an/DT
option/NN
on/IN
as/RB
much/JJ
as/IN
20/CD
%/NN
of/IN
Bell/NNP
Resources/NNPS
Ltd./NNP
,/,
a/DT
unit/NN
of/IN
Bond/NNP
Corp./NNP
that/WDT
is/VBZ
in/IN
the/DT
process/NN
of/IN
acquiring/VBG
Bond/NNP
Corp./NNP
's/POS
brewing/NN
businesses/NNS
for/IN
2.5/CD
billion/CD
Australian/JJ
dollars/NNS
US$/$
1.93/CD
billion/CD
S.A./NNP
Brewing/NNP
,/,
which/WDT
is/VBZ
20%-owned/JJ
by/IN
Elders/NNPS
IXL/NNP
Ltd./NNP
,/,
Australia/NNP
's/POS
largest/JJS
brewer/NN
,/,
will/MD
make/VB
a/DT
takeover/NN
offer/NN
for/IN
all/DT
of/IN
Bell/NNP
Resources/NNPS
if/IN
it/PRP
exercises/VBZ
the/DT
option/NN
,/,
the/DT
corporate/JJ
regulators/NNS
said/VBD
in/IN
a/DT
statement/NN
./.
Bond/NNP
Corp./NNP
,/,
a/DT
brewing/NN
,/,
property/NN
,/,
media/NNS
and/CC
resources/NNS
concern/NN
controlled/VBN
by/IN
financier/NN
Alan/NNP
Bond/NNP
,/,
is/VBZ
selling/VBG
many/JJ
of/IN
its/PRP$
assets/NNS
to/TO
reduce/VB
an/DT
A$/$
6.9/CD
billion/CD
debt/NN
./.
Contrary/JJ
to/TO
what/WP
might/MD
be/VB
expected/VBN
based/VBN
on/IN
the/DT
headline/NN
on/IN
John/NNP
R./NNP
Dorfman/NNP
's/POS
recent/JJ
Money/NN
Matters/NNS|VBZ
article/NN
``/``
Pros/NNS
Hit/VBP
Theorists/NNS
Right/RB
Where/WRB
It/PRP
Hurts/VBZ
''/''
Oct./NNP
3/CD
I/PRP
was/VBD
able/JJ
to/TO
stand/VB
proudly/RB
before/IN
my/PRP$
undergraduate/NN
finance/NN
students/NNS
and/CC
proclaim/VB
that/IN
the/DT
findings/NNS
of/IN
your/PRP$
yearlong/JJ
experiment/NN
on/IN
stock/NN
picking/NN
is/VBZ
completely/RB
consistent/JJ
with/IN
what/WP
they/PRP
have/VBP
been/VBN
taught/VBN
in/IN
the/DT
classroom/NN
./.
In/IN
particular/JJ
,/,
I/PRP
do/VBP
not/RB
find/VB
the/DT
fact/NN
that/IN
your/PRP$
group/NN
of/IN
pros/NNS
'/POS
monthly/JJ
selections/NNS
of/IN
four/CD
stocks/NNS
outperforms/VBZ
the/DT
market/NN
in/IN
general/JJ
to/TO
be/VB
inconsistent/JJ
with/IN
market/NN
efficiency/NN
./.
Mr./NNP
Dorfman/NNP
states/VBZ
that/IN
an/DT
investor/NN
who/WP
invested/VBD
$/$
100,000/CD
a/DT
year/NN
ago/RB
in/IN
the/DT
first/JJ
four/CD
stocks/NNS
selected/VBN
by/IN
your/PRP$
pros/NNS
and/CC
then/RB
sold/VBD
those/DT
one/CD
month/NN
later/RB
,/,
purchasing/VBG
the/DT
four/CD
new/JJ
pro/NN
picks/NNS
,/,
and/CC
repeated/VBD
this/DT
process/NN
for/IN
the/DT
year/NN
would/MD
have/VB
accumulated/VBN
$/$
166,537/CD
,/,
excluding/VBG
account/NN
dividends/NNS
,/,
taxes/NNS
and/CC
commissions/NNS
./.
In/IN
contrast/NN
,/,
an/DT
investor/NN
holding/VBG
the/DT
Dow/NNP
Jones/NNP
portfolio/NN
over/IN
the/DT
year/NN
would/MD
have/VB
accumulated/VBN
only/RB
$/$
127,446/CD
./.
Accepted/JJ
theories/NNS
of/IN
asset/NN
pricing/NN
offer/VBP
a/DT
perfectly/RB
legitimate/JJ
explanation/NN
./.
Accepted/JJ
theories/NNS
state/VBP
that/IN
investors/NNS
require/VBP
higher/JJR
returns/NNS
on/IN
riskier/JJR
investments/NNS
./.
Thus/RB
,/,
rather/RB
than/IN
seeing/VBG
the/DT
excess/JJ
returns/NNS
to/TO
the/DT
pro-selected/JJ
portfolio/NN
as/IN
being/VBG
abnormal/JJ
,/,
I/PRP
see/VBP
those/DT
returns/NNS
as/IN
simply/RB
compensations/NNS
for/IN
taking/VBG
on/IN
added/VBN
risk/NN
./.
I/PRP
believe/VBP
the/DT
risk/NN
for/IN
each/DT
individual/JJ
stock/NN
selected/VBN
by/IN
your/PRP$
pros/NNS
is/VBZ
very/RB
large/JJ
./.
If/IN
you/PRP
asked/VBD
me/PRP
to/TO
select/VB
a/DT
stock/NN
with/IN
the/DT
highest/JJS
expected/JJ
return/NN
,/,
I/PRP
would/MD
select/VB
a/DT
stock/NN
with/IN
the/DT
greatest/JJS
amount/NN
of/IN
undiversifiable/JJ
risk/NN
,/,
as/IN
I/PRP
am/VBP
sure/RB
your/PRP$
pros/NNS
do/VBP
./.
Your/PRP$
hypothetical/JJ
investor/NN
is/VBZ
simply/RB
being/VBG
compensated/VBN
for/IN
taking/VBG
on/RP
this/DT
added/VBN
risk/NN
./.
Moreover/RB
,/,
your/PRP$
hypothetical/JJ
investor/NN
has/VBZ
forsaken/VBN
the/DT
gains/NNS
to/TO
be/VB
had/VBN
in/IN
reducing/VBG
risk/NN
by/IN
diversifying/VBG
his/PRP$
portfolio/NN
./.
A/DT
four-stock/JJ
portfolio/NN
is/VBZ
still/RB
exposed/VBN
to/TO
a/DT
great/JJ
deal/NN
of/IN
unnecessary/JJ
risk/NN
./.
This/DT
means/VBZ
the/DT
returns/NNS
can/MD
vary/VB
a/DT
great/JJ
deal/NN
./.
Mr./NNP
Dorfman/NNP
provides/VBZ
confirming/VBG
evidence/NN
of/IN
this/DT
phenomenon/NN
when/WRB
he/PRP
reports/VBZ
that/IN
your/PRP$
staff/NN
of/IN
dart/NN
throwers/NNS
would/MD
have/VB
accumulated/VBN
only/RB
$/$
112,383/CD
by/IN
randomly/RB
selecting/VBG
four/CD
new/JJ
stocks/NNS
to/TO
be/VB
held/VBN
in/IN
a/DT
portfolio/NN
each/DT
month/NN
./.
Scott/NNP
E./NNP
Hein/NNP
Texas/NNP
Tech/NNP
University/NNP
Lubbock/NNP
,/,
Texas/NNP
Your/PRP$
Investment/NN
Dartboard/NN
article/NN
misses/VBZ
the/DT
target/NN
./.
The/DT
fact/NN
that/IN
stock/NN
pickers/NNS
have/VBP
bested/VBN
a/DT
randomly/RB
selected/VBN
portfolio/NN
in/IN
eight/CD
of/IN
12/CD
months/NNS
has/VBZ
no/DT
bearing/NN
on/IN
the/DT
efficient-market/NN
theory/NN
./.
What/WP
matters/VBZ
is/VBZ
that/IN
the/DT
stocks/NNS
recommended/VBN
by/IN
your/PRP$
pros/NNS
tend/VBP
to/TO
be/VB
substantially/RB
riskier/JJR
than/IN
a/DT
diversified/JJ
portfolio/NN
./.
For/IN
example/NN
,/,
your/PRP$
pickers/NNS
'/POS
recommendations/NNS
for/IN
the/DT
coming/VBG
month/NN
are/VBP
,/,
on/IN
average/NN
,/,
22.5/CD
%/NN
riskier/JJR
than/IN
holding/VBG
the/DT
market/NN
portfolio/NN
according/VBG
to/TO
Value/NNP
Line/NNP
's/POS
Beta/NN
estimates/NNS
./.
James/NNP
Morgan/NNP
's/POS
pick/NN
for/IN
October/NNP
--/:
Dynascan/NNP
--/:
is/VBZ
a/DT
substantial/JJ
35/CD
%/NN
riskier/JJR
than/IN
the/DT
market/NN
portfolio/NN
;/:
his/PRP$
lauded/VBD
Thermo/NNP
Electron/NNP
pick/NN
is/VBZ
40/CD
%/NN
riskier/JJR
./.
Eric/NNP
C./NNP
Meltzer/NNP
New/JJ
York/NNP
Peter/NNP
W./NNP
Likins/NNP
,/,
president/NN
of/IN
Lehigh/NNP
University/NNP
,/,
Bethlehem/NNP
,/,
Pa./NNP
,/,
was/VBD
elected/VBN
a/DT
director/NN
of/IN
this/DT
maker/NN
of/IN
industrial/JJ
motion-control/NN
parts/NNS
and/CC
systems/NNS
./.
His/PRP$
appointment/NN
expands/VBZ
the/DT
board/NN
to/TO
13/CD
members/NNS
./.
California/NNP
Thefts/NNS
Make/VBP
Travel/NN
Agents/NNS
Jittery/JJ
BEING/VBG
A/DT
TRAVEL/NN
agent/NN
used/VBN
to/TO
be/VB
pretty/RB
glamorous/JJ
./.
Now/RB
it/PRP
's/VBZ
getting/VBG
downright/RB
dangerous/JJ
./.
In/IN
recent/JJ
months/NNS
,/,
more/JJR
than/IN
25/CD
agencies/NNS
have/VBP
been/VBN
robbed/VBN
,/,
compared/VBN
with/IN
only/RB
a/DT
handful/NN
all/DT
last/JJ
year/NN
,/,
according/VBG
to/TO
police/NN
and/CC
travel-agency/NN
groups/NNS
./.
Most/JJS
of/IN
the/DT
cases/NNS
have/VBP
been/VBN
in/IN
California/NNP
,/,
where/WRB
one/CD
agent/NN
was/VBD
stabbed/VBN
and/CC
another/DT
was/VBD
shot/VBN
and/CC
killed/VBN
./.
Los/NNP
Angeles/NNP
police/NNS
say/VBP
the/DT
thieves/NNS
seem/VBP
to/TO
be/VB
part/NN
of/IN
a/DT
crime/NN
network/NN
that/WDT
knows/VBZ
how/WRB
to/TO
convert/VB
blank/JJ
tickets/NNS
into/IN
real/JJ
ones/NNS
./.
Already/RB
,/,
the/DT
stolen/JJ
tickets/NNS
have/VBP
been/VBN
used/VBN
for/IN
flights/NNS
all/DT
over/IN
the/DT
world/NN
./.
So/RB
far/RB
,/,
the/DT
thieves/NNS
have/VBP
stolen/VBN
3,632/CD
blank/JJ
tickets/NNS
,/,
according/VBG
to/TO
Airline/NNP
Reporting/NNP
Corp./NNP
,/,
a/DT
ticket/NN
processing/NN
center/NN
./.
Police/NNS
say/VBP
the/DT
robberies/NNS
are/VBP
usually/RB
pulled/VBN
off/RB
by/IN
two/CD
to/TO
five/CD
men/NNS
,/,
who/WP
walk/VBP
into/IN
the/DT
agencies/NNS
near/IN
closing/NN
or/CC
lunch/NN
time/NN
,/,
when/WRB
few/JJ
employees/NNS
are/VBP
there/RB
./.
``/``
They/PRP
looked/VBD
like/IN
ordinary/JJ
vacationers/NNS
at/IN
first/RB
,/,
''/''
says/VBZ
Willy/NNP
LLerena/NNP
,/,
owner/NN
of/IN
Travel/NNP
Air/NNP
Service/NNP
in/IN
Monte/NNP
Bello/NNP
,/,
Calif./NNP
,/,
describing/VBG
five/CD
men/NNS
who/WP
entered/VBD
his/PRP$
agency/NN
last/JJ
June/NNP
./.
But/CC
then/RB
,/,
he/PRP
says/VBZ
,/,
they/PRP
put/VBD
two/CD
loaded/JJ
pistols/NNS
to/TO
his/PRP$
temple/NN
and/CC
demanded/VBD
he/PRP
open/VB
the/DT
safe/NN
./.
When/WRB
he/PRP
initially/RB
refused/VBD
,/,
he/PRP
says/VBZ
,/,
they/PRP
stabbed/VBD
him/PRP
in/IN
the/DT
back/NN
and/CC
made/VBD
off/RB
with/IN
$/$
2,000/CD
and/CC
280/CD
blank/JJ
tickets/NNS
./.
``/``
They/PRP
said/VBD
they/PRP
wanted/VBD
to/TO
show/VB
me/PRP
how/WRB
serious/JJ
they/PRP
were/VBD
,/,
''/''
he/PRP
says/VBZ
./.
As/IN
word/NN
of/IN
the/DT
crime/NN
spree/NN
has/VBZ
spread/VBN
,/,
many/JJ
agents/NNS
have/VBP
started/VBN
changing/VBG
their/PRP$
open-door/JJ
policies/NNS
./.
At/IN
El/NNP
Monte/NNP
Travel/NNP
Center/NNP
in/IN
El/NNP
Monte/NNP
,/,
Calif./NNP
,/,
customers/NNS
now/RB
can/MD
get/VB
in/RB
only/RB
through/IN
a/DT
buzzer/NN
and/CC
lock/NN
system/NN
./.
``/``
It/PRP
's/VBZ
hard/JJ
to/TO
deal/VB
with/IN
clients/NNS
this/DT
way/NN
in/IN
a/DT
service/NN
business/NN
,/,
''/''
says/VBZ
Ralph/NNP
``/``
Bud/NNP
''/''
Conner/NNP
,/,
owner/NN
of/IN
the/DT
agency/NN
,/,
which/WDT
was/VBD
robbed/VBN
of/IN
180/CD
blank/JJ
tickets/NNS
and/CC
$/$
850/CD
last/JJ
month/NN
./.
``/``
But/CC
we/PRP
're/VBP
just/RB
too/RB
nervous/JJ
./.
''/''
The/DT
robberies/NNS
also/RB
have/VBP
set/VBN
off/RP
a/DT
controversy/NN
involving/VBG
the/DT
airlines/NNS
./.
Agents/NNS
say/VBP
airlines/NNS
,/,
which/WDT
track/VBP
ticket/NN
numbers/NNS
of/IN
all/DT
stolen/VBN
tickets/NNS
,/,
should/MD
be/VB
doing/VBG
more/JJR
to/TO
catch/VB
the/DT
thieves/NNS
by/IN
confiscating/VBG
the/DT
tickets/NNS
when/WRB
they/PRP
're/VBP
used/VBN
./.
``/``
They/PRP
have/VBP
the/DT
most/RBS
sophisticated/JJ
computers/NNS
in/IN
the/DT
world/NN
,/,
''/''
says/VBZ
Mr./NNP
LLerena/NNP
./.
``/``
They/PRP
ought/MD
to/TO
be/VB
able/JJ
to/TO
do/VB
this/DT
./.
''/''
But/CC
airlines/NNS
say/VBP
it/PRP
would/MD
be/VB
too/RB
expensive/JJ
and/CC
cause/VB
too/RB
many/JJ
delays/NNS
if/IN
they/PRP
started/VBD
using/VBG
computerized/JJ
scanners/NNS
to/TO
check/VB
tickets/NNS
at/IN
the/DT
gate/NN
./.
Texans/NNPS
Get/VBP
Reasonable/JJ
Car/NN
Rental/JJ
Insurance/NN
CONSUMER/NN
advocates/NNS
have/VBP
long/RB
claimed/VBN
that/IN
car/NN
rental/JJ
companies/NNS
charge/VBP
too/RB
much/RB
for/IN
car/NN
rental/NN
insurance/NN
./.
Now/RB
,/,
a/DT
new/JJ
law/NN
in/IN
Texas/NNP
seems/VBZ
to/TO
be/VB
providing/VBG
the/DT
proof/NN
./.
The/DT
law/NN
--/:
the/DT
first/JJ
of/IN
its/PRP$
kind/NN
--/:
requires/VBZ
car/NN
rental/JJ
companies/NNS
in/IN
Texas/NNP
to/TO
charge/VB
only/JJ
``/``
reasonable/JJ
''/''
rates/NNS
for/IN
collision-damage/NN
waiver/NN
insurance/NN
./.
Specifically/RB
,/,
the/DT
law/NN
says/VBZ
the/DT
rates/NNS
must/MD
closely/RB
reflect/VB
what/WP
the/DT
company/NN
's/POS
actual/JJ
expenses/NNS
have/VBP
been/VBN
to/TO
replace/VB
damaged/JJ
cars/NNS
./.
Before/IN
the/DT
law/NN
went/VBD
into/IN
effect/NN
last/JJ
month/NN
,/,
car/NN
rental/NN
companies/NNS
were/VBD
charging/VBG
as/RB
much/JJ
as/IN
$/$
12/CD
a/DT
day/NN
for/IN
the/DT
waiver/NN
in/IN
Texas/NNP
./.
Now/RB
,/,
they/PRP
're/VBP
charging/VBG
as/RB
little/JJ
$/$
3/CD
a/DT
day/NN
./.
``/``
If/IN
they/PRP
're/VBP
telling/VBG
the/DT
truth/NN
now/RB
,/,
then/RB
they/PRP
've/VBP
been/VBN
charging/VBG
300/CD
%/NN
more/JJR
than/IN
what/WP
is/VBZ
reasonable/JJ
,/,
''/''
says/VBZ
Steve/NNP
Gardner/NNP
,/,
an/DT
assistant/NN
state/NN
attorney/NN
general/NN
in/IN
Texas/NNP
./.
A/DT
spokesman/NN
for/IN
Hertz/NNP
Corp./NNP
acknowledges/VBZ
,/,
``/``
The/DT
waiver/NN
is/VBZ
n't/RB
a/DT
source/NN
of/IN
protection/NN
for/IN
consumers/NNS
,/,
but/CC
a/DT
source/NN
of/IN
revenue/NN
./.
''/''
But/CC
Hertz/NNP
points/VBZ
out/RB
that/DT
at/IN
least/RBS
it/PRP
's/VBZ
now/RB
charging/VBG
only/RB
$/$
3.95/CD
a/DT
day/NN
in/IN
Texas/NNP
,/,
while/IN
some/DT
competitors/NNS
are/VBP
charging/VBG
$/$
6.99/CD
./.
The/DT
state/NN
attorney/NN
general/NN
's/POS
office/NN
is/VBZ
investigating/VBG
rental/JJ
car/NN
agencies/NNS
charging/VBG
noticeably/RB
higher/JJR
prices/NNS
./.
Flight/NN
Attendants/NNS
Lag/NN
Before/IN
Jets/NNS
Even/RB
Land/VBP
IF/IN
YOUR/JJ
FLIGHT/NN
attendant/NN
seems/VBZ
a/DT
little/RB
weary/JJ
,/,
it/PRP
may/MD
be/VB
because/IN
he/PRP
or/CC
she/PRP
has/VBZ
been/VBN
working/VBG
20/CD
straight/JJ
hours/NNS
./.
A/DT
recent/JJ
study/NN
for/IN
the/DT
Federal/NNP
Aviation/NNP
Administration/NNP
found/VBD
that/IN
major/JJ
airlines/NNS
sometimes/RB
make/VB
flight/NN
attendants/NNS
work/VB
16/CD
hours/NNS
or/CC
more/JJR
straight/RB
--/:
despite/IN
union/NN
contracts/NNS
at/IN
some/DT
airlines/NNS
limiting/VBG
duty/NN
time/NN
to/TO
14/CD
hours/NNS
./.
Some/DT
flight/NN
attendants/NNS
on/IN
charter/NN
planes/NNS
are/VBP
putting/VBG
in/RP
20-hour/JJ
work/NN
days/NNS
,/,
the/DT
study/NN
found/VBD
./.
This/DT
happens/VBZ
because/IN
the/DT
FAA/NNP
does/VBZ
n't/RB
have/VB
any/DT
rules/NNS
on/IN
duty/NN
time/NN
for/IN
flight/NN
attendants/NNS
;/:
by/IN
contrast/NN
,/,
it/PRP
strictly/RB
restricts/VBZ
duty/NN
time/NN
for/IN
pilots/NNS
and/CC
air/NN
traffic/NN
controllers/NNS
,/,
usually/RB
to/TO
a/DT
maximum/NN
of/IN
10/CD
consecutive/JJ
hours/NNS
./.
``/``
As/RB
far/RB
as/IN
the/DT
FAA/NNP
is/VBZ
concerned/VBN
,/,
''/''
says/VBZ
Matt/NNP
Finucane/NNP
,/,
air/NN
safety/NN
director/NN
at/IN
the/DT
Association/NNP
of/IN
Flight/NNP
Attendants/NNPS
,/,
``/``
flight/NN
attendants/NNS
can/MD
work/VB
an/DT
unlimited/JJ
number/NN
of/IN
hours/NNS
./.
''/''
Experts/NNS
say/VBP
such/JJ
long/JJ
hours/NNS
for/IN
attendants/NNS
pose/VBP
a/DT
safety/NN
risk/NN
./.
For/IN
instance/NN
,/,
tired/JJ
flight/NN
attendants/NNS
might/MD
not/RB
react/VB
quickly/RB
enough/RB
during/IN
an/DT
emergency/NN
evacuation/NN
./.
``/``
At/IN
the/DT
end/NN
of/IN
their/PRP$
day/NN
,/,
they/PRP
are/VBP
zombies/NNS
,/,
''/''
says/VBZ
John/NNP
Galipault/NNP
,/,
president/NN
of/IN
the/DT
Aviation/NNP
Safety/NNP
Institute/NNP
,/,
a/DT
public-interest/JJ
group/NN
in/IN
Worthington/NNP
,/,
Ohio/NNP
./.
``/``
They/PRP
have/VBP
to/TO
work/VB
such/JJ
long/JJ
hours/NNS
and/CC
then/RB
we/PRP
expect/VBP
them/PRP
to/TO
be/VB
heroes/NNS
if/IN
there/EX
's/VBZ
an/DT
evacuation/NN
./.
''/''
In/IN
response/NN
to/TO
the/DT
study/NN
,/,
the/DT
FAA/NNP
says/VBZ
it/PRP
is/VBZ
considering/VBG
changing/VBG
its/PRP$
policy/NN
--/:
or/CC
lack/NN
of/IN
it/PRP
--/:
on/IN
flight/NN
attendants/NNS
./.
The/DT
agency/NN
may/MD
not/RB
have/VB
much/JJ
choice/NN
:/:
A/DT
congressional/JJ
bill/NN
has/VBZ
been/VBN
introduced/VBN
that/WDT
would/MD
force/VB
the/DT
agency/NN
to/TO
limit/VB
flight/NN
attendant/NN
duty/NN
time/NN
to/TO
14/CD
hours/NNS
on/IN
U.S./NNP
flights/NNS
and/CC
16/CD
hours/NNS
on/IN
international/JJ
trips/NNS
./.
Odds/NNS
and/CC
Ends/NNS
GOLF/NN
HAS/VBZ
BECOME/VB
the/DT
latest/JJ
diversion/NN
for/IN
travelers/NNS
stuck/VBN
at/IN
some/DT
airports/NNS
./.
Simulated/JJ
golf/NN
games/NNS
,/,
in/IN
which/WDT
players/NNS
hit/VBP
golf/NN
balls/NNS
into/IN
nets/NNS
,/,
have/VBP
been/VBN
installed/VBN
at/IN
airports/NNS
in/IN
Denver/NNP
and/CC
Pittsburgh/NNP
.../:
./.
The/DT
average/JJ
cost/NN
for/IN
breakfast/NN
at/IN
a/DT
``/``
decent/JJ
''/''
hotel/NN
restaurant/NN
in/IN
New/NNP
York/NNP
is/VBZ
$/$
17.12/CD
,/,
according/VBG
to/TO
Corporate/NNP
Travel/NNP
magazine/NN
./.
The/DT
cheapest/JJS
,/,
among/IN
100/CD
cities/NNS
surveyed/VBN
,/,
was/VBD
$/$
5.11/CD
in/IN
El/NNP
Paso/NNP
,/,
Texas/NNP
./.
Mark/NNP
Q./NNP
Huggins/NNP
was/VBD
named/VBN
executive/NN
vice/NN
president/NN
and/CC
chief/JJ
financial/JJ
officer/NN
./.
Mr./NNP
Huggins/NNP
,/,
39/CD
years/NNS
old/JJ
,/,
formerly/RB
was/VBD
controller/NN
and/CC
chief/JJ
accounting/NN
officer/NN
at/IN
Harte-Hanks/NNP
Communications/NNPS
Inc/NNP
./.
Management/NNP
Co./NNP
manages/VBZ
entertainers/NNS
and/CC
produces/VBZ
,/,
markets/VBZ
and/CC
finances/VBZ
entertainment/NN
./.
Why/WRB
do/VBP
you/PRP
continually/RB
ignore/VB
the/DT
salubrious/JJ
effects/NNS
of/IN
indexing/VBG
the/DT
basis/NN
of/IN
capital/NN
gains/NNS
for/IN
inflation/NN
?/.
Why/WRB
do/VBP
you/PRP
maintain/VB
the/DT
House-passed/JJ
capital-gains/NNS
plan/NN
is/VBZ
a/DT
``/``
temporary/JJ
''/''
reduction/NN
when/WRB
it/PRP
is/VBZ
not/RB
?/.
I/PRP
think/VBP
the/DT
reason/NN
is/VBZ
that/IN
you/PRP
are/VBP
confusing/VBG
tax/NN
``/``
rates/NNS
''/''
with/IN
tax/NN
``/``
payments/NNS
./.
''/''
Your/PRP$
Sept./NNP
29/CD
page-one/NN
story/NN
on/IN
the/DT
House-passed/JJ
capital-gains/NNS
plan/NN
is/VBZ
a/DT
good/JJ
example/NN
./.
You/PRP
lead/VBP
readers/NNS
to/TO
believe/VB
that/IN
the/DT
House/NNP
reduced/VBD
the/DT
capital-gains/NNS
tax/NN
for/IN
two/CD
years/NNS
only/RB
./.
You/PRP
virtually/RB
ignore/VBP
the/DT
tax-reducing/VBG
power/NN
of/IN
indexation/NN
,/,
which/WDT
in/IN
many/JJ
cases/NNS
is/VBZ
more/RBR
substantial/JJ
than/IN
a/DT
lower/JJR
rate/NN
./.
The/DT
monetary/JJ
tax/NN
benefit/NN
of/IN
indexation/NN
for/IN
all/DT
gains/NNS
in/IN
excess/NN
of/IN
inflation/NN
can/MD
be/VB
measured/VBN
using/VBG
the/DT
following/JJ
equation/NN
:/:
tax/NN
rate/NN
,/,
times/CC
inflation/NN
rate/NN
,/,
times/CC
basis/NN
for/IN
the/DT
gain/NN
./.
Depending/VBG
on/IN
the/DT
size/NN
of/IN
the/DT
gain/NN
and/CC
the/DT
rate/NN
of/IN
inflation/NN
,/,
indexation/NN
can/MD
mean/VB
a/DT
lower/JJR
tax/NN
payment/NN
than/IN
using/VBG
the/DT
19.6/CD
%/NN
rate/NN
without/IN
indexation/NN
./.
But/CC
in/IN
any/DT
event/NN
--/:
and/CC
this/DT
is/VBZ
the/DT
important/JJ
point/NN
--/:
tax/NN
``/``
payments/NNS
''/''
on/IN
capital/NN
gains/NNS
will/MD
be/VB
lower/JJR
with/IN
indexation/NN
than/IN
under/IN
current/JJ
law/NN
,/,
even/RB
though/IN
the/DT
tax/NN
``/``
rate/NN
''/''
is/VBZ
the/DT
same/JJ
under/IN
both/DT
systems/NNS
./.
As/IN
you/PRP
can/MD
see/VB
,/,
the/DT
capital-gains/NNS
reduction/NN
plan/NN
adopted/VBN
by/IN
the/DT
House/NNP
would/MD
not/RB
be/VB
temporary/JJ
,/,
but/CC
permanent/JJ
./.
I/PRP
hope/VBP
that/IN
you/PRP
begin/VB
talking/VBG
about/IN
the/DT
plan/NN
's/POS
permanent/JJ
and/CC
,/,
in/IN
my/PRP$
view/NN
,/,
most/RBS
beneficial/JJ
feature/NN
--/:
indexation/NN
./.
Rep./NNP
Robert/NNP
K./NNP
Dornan/NNP
R./NNP
,/,
Calif/NNP
./.
Washington/NNP
That/IN
the/DT
motivation/NN
for/IN
the/DT
two-year/JJ
reduction/NN
to/TO
19.6/CD
%/NN
is/VBZ
budgetary/JJ
does/VBZ
not/RB
mean/VB
it/PRP
is/VBZ
not/RB
in/IN
the/DT
public/JJ
interest/NN
./.
The/DT
reduction/NN
eases/VBZ
the/DT
burden/NN
on/IN
portfolio/NN
changes/NNS
and/CC
frees/VBZ
capital/NN
to/TO
seek/VB
more/RBR
productive/JJ
or/CC
more/RBR
appropriate/JJ
uses/NNS
./.
But/CC
what/WP
is/VBZ
really/RB
significant/JJ
is/VBZ
the/DT
indexation/NN
of/IN
capital/NN
gains/NNS
after/IN
1991/CD
./.
To/TO
argue/VB
that/IN
this/DT
is/VBZ
``/``
not/RB
likely/JJ
''/''
to/TO
affect/VB
the/DT
economy/NN
in/IN
positive/JJ
ways/NNS
is/VBZ
contrary/JJ
both/DT
to/TO
recent/JJ
experience/NN
with/IN
capital-gains/NNS
tax/NN
cuts/NNS
and/CC
to/TO
common/JJ
sense/NN
./.
A/DT
large/JJ
part/NN
of/IN
the/DT
long-term/JJ
appreciation/NN
of/IN
assets/NNS
reflects/VBZ
inflation/NN
,/,
and/CC
the/DT
taxation/NN
of/IN
inflation-created/JJ
capital/NN
gains/NNS
is/VBZ
confiscation/NN
./.
Does/VBZ
the/DT
Journal/NNP
really/RB
believe/VB
that/IN
people/NNS
ignore/VBP
the/DT
prospect/NN
of/IN
having/VBG
a/DT
substantial/JJ
part/NN
of/IN
their/PRP$
capital/NN
confiscated/VBN
when/WRB
they/PRP
decide/VBP
whether/IN
to/TO
save/VB
or/CC
how/WRB
to/TO
invest/VB
?/.
Under/IN
current/JJ
law/NN
,/,
it/PRP
is/VBZ
not/RB
financially/RB
rational/JJ
to/TO
forgo/VB
consumption/NN
./.
Real/JJ
,/,
aftertax/JJ
returns/NNS
from/IN
financial/JJ
assets/NNS
are/VBP
on/IN
the/DT
order/NN
of/IN
1/CD
%/NN
or/CC
2/CD
%/NN
a/DT
year/NN
./.
The/DT
capital-gains/NNS
tax/NN
reform/NN
is/VBZ
a/DT
step/NN
toward/IN
correcting/VBG
one/CD
of/IN
the/DT
gravest/JJS
structural/JJ
weaknesses/NNS
of/IN
the/DT
U.S./NNP
economy/NN
,/,
the/DT
closely/RB
connected/JJ
phenomena/NNS
of/IN
low/JJ
savings/NNS
rates/NNS
,/,
weak/JJ
capital/NN
formation/NN
and/CC
high/JJ
capital/NN
costs/NNS
./.
J./NNP
Sigurd/NNP
Nielsen/NNP
Richmond/NNP
,/,
Va/NNP
./.
Isaac/NNP
Hersly/NNP
,/,
41/CD
years/NNS
old/JJ
,/,
was/VBD
elected/VBN
president/NN
and/CC
chief/JJ
operating/VBG
officer/NN
of/IN
this/DT
designer/NN
and/CC
marketer/NN
of/IN
graphics/NNS
,/,
video/NN
,/,
cable/NN
and/CC
other/JJ
television-related/JJ
equipment/NN
./.
He/PRP
succeeds/VBZ
Alfred/NNP
O.P./NNP
Leubert/NNP
,/,
66/CD
,/,
who/WP
continues/VBZ
as/IN
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
./.
Mr./NNP
Hersly/NNP
formerly/RB
was/VBD
group/NN
vice/NN
president/NN
of/IN
marketing/NN
and/CC
product/NN
planning/NN
for/IN
Chyron/NNP
and/CC
president/NN
of/IN
the/DT
telesystems/NNS
and/CC
video/NN
products/NNS
division/NN
./.
W.R./NNP
Grace/NNP
&/CC
Co./NNP
said/VBD
it/PRP
formed/VBD
a/DT
new/JJ
horticultural-products/NNS
company/NN
by/IN
combining/VBG
its/PRP$
soil-nutrients/NNS
and/CC
fertilizers/NNS
business/NN
with/IN
Sierra/NNP
Chemical/NNP
Co./NNP
,/,
Milpitas/NNP
,/,
Calif/NNP
./.
Grace/NNP
,/,
a/DT
maker/NN
of/IN
specialty/NN
chemicals/NNS
that/WDT
already/RB
owned/VBD
about/IN
30/CD
%/NN
of/IN
closely/RB
held/JJ
Sierra/NNP
,/,
said/VBD
it/PRP
owns/VBZ
a/DT
49/CD
%/NN
stake/NN
in/IN
the/DT
new/JJ
company/NN
./.
Grace/NNP
said/VBD
it/PRP
did/VBD
n't/RB
invest/VB
any/DT
additional/JJ
capital/NN
in/IN
the/DT
venture/NN
,/,
which/WDT
will/MD
be/VB
known/VBN
as/IN
Grace-Sierra/NNP
Horticultural/NNP
Products/NNPS
Co/NNP
./.
The/DT
business/NN
is/VBZ
expected/VBN
to/TO
have/VB
sales/NNS
of/IN
about/IN
$/$
100/CD
million/CD
in/IN
1990/CD
,/,
Grace/NNP
said/VBD
./.
The/DT
new/JJ
company/NN
's/POS
product/NN
lines/NNS
will/MD
be/VB
aimed/VBN
at/IN
nurseries/NNS
,/,
greenhouses/NNS
and/CC
the/DT
lawn/NN
and/CC
garden/NN
industry/NN
./.
The/DT
Financial/NNP
Accounting/NNP
Standards/NNPS
Board/NNP
said/VBD
it/PRP
will/MD
soon/RB
issue/VB
a/DT
rule/NN
requiring/VBG
disclosure/NN
about/IN
the/DT
financial/JJ
risk/NN
of/IN
certain/JJ
financial/JJ
instruments/NNS
./.
But/CC
the/DT
chief/JJ
rule-making/NN
body/NN
for/IN
accountants/NNS
backed/VBD
off/RP
one/CD
part/NN
of/IN
its/PRP$
original/JJ
proposal/NN
made/VBN
earlier/RBR
this/DT
year/NN
that/WDT
would/MD
have/VB
required/VBN
a/DT
breakdown/NN
of/IN
certain/JJ
balance-sheet/NN
items/NNS
related/VBN
to/TO
off-balance/JJ
sheet/NN
instruments/NNS
./.
The/DT
balance-sheet/NN
detail/NN
was/VBD
opposed/VBN
by/IN
many/JJ
banks/NNS
and/CC
thrifts/NNS
that/WDT
felt/VBD
the/DT
cost/NN
of/IN
supplying/VBG
such/JJ
data/NNS
was/VBD
n't/RB
worth/JJ
the/DT
value/NN
of/IN
the/DT
disclosures/NNS
./.
Under/IN
the/DT
initial/JJ
proposal/NN
,/,
for/IN
example/NN
,/,
banks/NNS
would/MD
have/VB
been/VBN
required/VBN
to/TO
disclose/VB
that/DT
portion/NN
of/IN
allowances/NNS
for/IN
loan/NN
losses/NNS
that/WDT
reflects/VBZ
specific/JJ
letters/NNS
of/IN
credit/NN
for/IN
which/WDT
customers/NNS
had/VBD
defaulted/VBN
./.
The/DT
final/JJ
rule/NN
wo/MD
n't/RB
require/VB
such/JJ
a/DT
breakdown/NN
of/IN
the/DT
allowances/NNS
for/IN
loan/NN
losses/NNS
,/,
which/WDT
appears/VBZ
on/IN
the/DT
balance/NN
sheet/NN
./.
The/DT
FASB/NNP
rule/NN
will/MD
cover/VB
such/JJ
financial/JJ
instruments/NNS
as/IN
interest/NN
rate/NN
swaps/NNS
,/,
financial/JJ
guarantees/NNS
,/,
foward/JJ
interest/NN
rate/NN
contracts/NNS
,/,
loan/NN
contracts/NNS
,/,
loan/NN
commitments/NNS
and/CC
options/NNS
written/VBN
on/IN
securites/NNS
held/JJ
./.
It/PRP
will/MD
require/VB
companies/NNS
to/TO
spell/VB
out/RB
in/IN
more/JJR
detail/NN
collateral/NN
polices/NNS
and/CC
concentrations/NNS
of/IN
credit/NN
risk/NN
for/IN
all/DT
financial/JJ
instruments/NNS
./.
The/DT
rule/NN
will/MD
require/VB
companies/NNS
with/IN
financial/JJ
instruments/NNS
that/WDT
have/VBP
off-balance/JJ
sheet/NN
risks/NNS
to/TO
disclose/VB
data/NNS
about/IN
the/DT
value/NN
and/CC
terms/NNS
of/IN
the/DT
instruments/NNS
,/,
any/DT
accounting/NN
loss/NN
that/WDT
would/MD
occur/VB
if/IN
the/DT
outside/JJ
party/NN
involved/JJ
in/IN
the/DT
instrument/NN
failed/VBD
to/TO
perform/VB
,/,
and/CC
the/DT
company/NN
's/POS
policy/NN
for/IN
requiring/VBG
collateral/NN
or/CC
other/JJ
security/NN
for/IN
the/DT
instrument/NN
./.
Scott/NNP
Miller/NNP
,/,
an/DT
FASB/NNP
project/NN
manager/NN
,/,
said/VBD
that/IN
a/DT
final/JJ
rule/NN
will/MD
be/VB
issued/VBN
before/IN
year/NN
end/NN
./.
But/CC
he/PRP
noted/VBD
that/IN
the/DT
initial/JJ
effective/JJ
date/NN
of/IN
the/DT
earlier/JJR
proposal/NN
had/VBD
been/VBN
delayed/VBN
by/IN
six/CD
months/NNS
./.
The/DT
new/JJ
rule/NN
will/MD
be/VB
effective/JJ
for/IN
financial/JJ
statements/NNS
with/IN
fiscal/JJ
years/NNS
ending/VBG
after/IN
June/NNP
15/CD
,/,
Poughkeepsie/NNP
Savings/NNPS
Bank/NNP
said/VBD
a/DT
plan/NN
to/TO
sell/VB
its/PRP$
South/NNP
Carolina/NNP
branch/NN
offices/NNS
to/TO
First/NNP
Citizens/NNPS
Bank/NNP
,/,
of/IN
Columbia/NNP
,/,
S.C./NNP
,/,
fell/VBD
through/RP
./.
Poughkeepsie/NNP
also/RB
expects/VBZ
to/TO
post/VB
a/DT
one-time/JJ
charge/NN
of/IN
$/$
8.3/CD
million/CD
,/,
resulting/VBG
in/IN
a/DT
net/JJ
loss/NN
for/IN
the/DT
third/JJ
quarter/NN
./.
The/DT
charge/NN
represents/VBZ
a/DT
write-down/NN
of/IN
the/DT
goodwill/NN
associated/VBN
with/IN
Poughkeepsie/NNP
's/POS
investment/NN
in/IN
the/DT
banks/NNS
it/PRP
is/VBZ
trying/VBG
to/TO
sell/VB
and/CC
its/PRP$
North/NNP
Carolina/NNP
branches/NNS
as/RB
well/RB
./.
The/DT
thrift/NN
announced/VBD
the/DT
plan/NN
Aug./NNP
21/CD
./.
Among/IN
other/JJ
reasons/NNS
,/,
high/JJ
fees/NNS
regulators/NNS
imposed/VBN
on/IN
certain/JJ
transfers/NNS
of/IN
thrift/NN
deposits/NNS
to/TO
commercial/JJ
banks/NNS
``/``
substantially/RB
altered/VBD
the/DT
economics/NNS
of/IN
the/DT
transaction/NN
for/IN
both/DT
parties/NNS
,/,
''/''
Poughkeepsie/NNP
said/VBD
./.
Additionally/RB
,/,
the/DT
bank/NN
is/VBZ
increasing/VBG
its/PRP$
loan-loss/NN
reserves/NNS
for/IN
the/DT
third/JJ
quarter/NN
by/IN
$/$
8.5/CD
million/CD
before/IN
taxes/NNS
./.
In/IN
the/DT
year-earlier/JJ
third/JJ
quarter/NN
,/,
Poughkeepsie/NNP
Savings/NNPS
had/VBD
net/JJ
income/NN
of/IN
$/$
2.8/CD
million/CD
,/,
or/CC
77/CD
cents/NNS
a/DT
share/NN
./.
Poughkeepsie/NNP
said/VBD
it/PRP
is/VBZ
continuing/VBG
to/TO
try/VB
to/TO
sell/VB
itself/PRP
,/,
under/IN
a/DT
June/NNP
agreement/NN
with/IN
a/DT
dissident-shareholder/NN
group/NN
./.
The/DT
bank/NN
also/RB
said/VBD
its/PRP$
effort/NN
would/MD
continue/VB
past/IN
the/DT
Nov./NNP
1/CD
deadline/NN
set/VBN
in/IN
that/DT
agreement/NN
and/CC
that/IN
the/DT
litigation/NN
between/IN
the/DT
two/CD
sides/NNS
might/MD
resume/VB
as/IN
a/DT
result/NN
./.
The/DT
thrift/NN
and/CC
the/DT
holders/NNS
had/VBD
suspended/VBN
their/PRP$
lawsuits/NNS
as/IN
part/NN
of/IN
the/DT
agreement/NN
./.
Joe/NNP
Frank/NNP
Sanderson/NNP
Jr./NNP
was/VBD
elected/VBN
president/NN
and/CC
chief/JJ
executive/NN
officer/NN
of/IN
this/DT
poultry/NN
producer/NN
./.
Joe/NNP
Frank/NNP
Sanderson/NNP
,/,
who/WP
is/VBZ
currently/RB
chairman/NN
,/,
chief/JJ
executive/NN
and/CC
treasurer/NN
,/,
will/MD
remain/VB
chairman/NN
./.
The/DT
current/JJ
president/NN
and/CC
chief/JJ
operating/VBG
officer/NN
,/,
J./NNP
Odell/NNP
Johnson/NNP
,/,
was/VBD
elected/VBN
to/TO
the/DT
new/JJ
position/NN
of/IN
vice/NN
chairman/NN
of/IN
the/DT
board/NN
./.
Kinder-Care/NNP
Inc./NNP
was/VBD
dropped/VBN
from/IN
the/DT
consumer/NN
services/NNS
industry/NN
group/NN
of/IN
the/DT
Dow/NNP
Jones/NNP
Equity/NNP
Market/NNP
index/NN
because/IN
the/DT
company/NN
split/VBD
itself/PRP
in/IN
a/DT
restructuring/NN
./.
It/PRP
was/VBD
succeeded/VBN
in/IN
the/DT
group/NN
by/IN
Fuqua/NNP
Industries/NNPS
Inc/NNP
./.
Both/DT
moves/NNS
are/VBP
effective/JJ
today/NN
./.
A/DT
potentially/RB
safer/JJR
whooping/JJ
cough/NN
vaccine/NN
made/VBN
by/IN
novel/JJ
genetic/JJ
engineering/NN
techniques/NNS
was/VBD
described/VBN
by/IN
a/DT
team/NN
of/IN
Italian/JJ
,/,
U.S./NNP
and/CC
Japanese/JJ
scientists/NNS
./.
The/DT
team/NN
reported/VBD
they/PRP
managed/VBD
to/TO
induce/VB
bacteria/NNS
to/TO
produce/VB
a/DT
non-toxic/JJ
version/NN
of/IN
the/DT
poisons/NNS
produced/VBN
by/IN
the/DT
bacterium/NN
that/WDT
causes/VBZ
whooping/JJ
cough/NN
./.
Laboratory/NN
tests/NNS
showed/VBD
that/IN
non-toxic/JJ
versions/NNS
of/IN
the/DT
poisons/NNS
are/VBP
capable/JJ
of/IN
inducing/VBG
an/DT
immunity/NN
to/TO
whooping/JJ
cough/NN
,/,
the/DT
researchers/NNS
reported/VBD
in/IN
this/DT
week/NN
's/POS
issue/NN
of/IN
the/DT
journal/NN
Science/NNP
./.
The/DT
current/JJ
vaccine/NN
for/IN
whooping/JJ
cough/NN
,/,
or/CC
pertussis/NN
,/,
is/VBZ
part/NN
of/IN
the/DT
``/``
DPT/NNP
''/''
(/(
for/IN
diphtheria/NN
,/,
pertussis/NN
,/,
tetanus/NN
most/JJS
infants/NNS
and/CC
young/JJ
children/NNS
./.
The/DT
vaccine/NN
is/VBZ
effective/JJ
in/IN
preventing/VBG
a/DT
disease/NN
that/WDT
still/RB
afflicts/VBZ
about/IN
60/CD
million/CD
children/NNS
a/DT
year/NN
world-wide/RB
,/,
causing/VBG
an/DT
estimated/VBN
one/CD
million/CD
deaths/NNS
./.
The/DT
vaccine/NN
,/,
however/RB
,/,
causes/VBZ
allergic/JJ
reactions/NNS
that/WDT
can/MD
be/VB
fatal/JJ
./.
The/DT
reactions/NNS
stem/VBP
from/IN
the/DT
fact/NN
that/IN
the/DT
vaccine/NN
contains/VBZ
multiple/JJ
copies/NNS
of/IN
the/DT
whole/JJ
Bordetella/NN
pertussis/NN
bacterium/NN
,/,
which/WDT
causes/VBZ
whooping/JJ
cough/NN
./.
This/DT
bacterium/NN
produces/VBZ
a/DT
toxin/NN
that/IN
,/,
if/IN
used/VBN
as/IN
a/DT
vaccine/NN
,/,
can/MD
induce/VB
immunity/NN
to/TO
whooping/JJ
cough/NN
./.
Unfortunately/RB
,/,
the/DT
toxin/NN
is/VBZ
also/RB
poisonous/JJ
./.
The/DT
Italian-led/JJ
scientific/JJ
team/NN
said/VBD
they/PRP
had/VBD
succeeded/VBN
in/IN
getting/VBG
bacteria/NNS
to/TO
produce/VB
a/DT
non-toxic/JJ
version/NN
of/IN
the/DT
pertussis/NN
toxin/NN
,/,
which/WDT
could/MD
be/VB
used/VBN
as/IN
a/DT
safe/JJ
vaccine/NN
./.
The/DT
researchers/NNS
reported/VBD
they/PRP
have/VBP
been/VBN
able/JJ
to/TO
pluck/VB
the/DT
five/CD
genes/NNS
that/WDT
produced/VBD
the/DT
toxin/NN
out/IN
of/IN
the/DT
pertussis/NN
bacterium/NN
./.
It/PRP
turned/VBD
out/RB
that/IN
although/IN
it/PRP
took/VBD
all/DT
five/CD
genes/NNS
to/TO
produce/VB
the/DT
toxin/NN
,/,
only/RB
one/CD
was/VBD
responsible/JJ
for/IN
the/DT
toxin/NN
's/POS
virulence/NN
./.
Ordinarily/RB
in/IN
genetic/JJ
engineering/NN
each/DT
of/IN
these/DT
genes/NNS
,/,
minus/CC
the/DT
one/NN
that/WDT
caused/VBD
the/DT
virulence/NN
,/,
would/MD
have/VB
been/VBN
transferred/VBN
to/TO
another/DT
bacterium/NN
,/,
called/VBN
E./NNP
coli/NNS
,/,
which/WDT
would/MD
then/RB
produce/VB
a/DT
nonvirulent/JJ
version/NN
of/IN
the/DT
toxin/NN
./.
The/DT
researchers/NNS
said/VBD
they/PRP
did/VBD
this/DT
,/,
but/CC
the/DT
toxin/NN
did/VBD
n't/RB
induce/VB
immunity/NN
to/TO
whooping/JJ
cough/NN
./.
The/DT
scientists/NNS
then/RB
took/VBD
the/DT
five/CD
toxin/NN
genes/NNS
and/CC
triggered/VBD
a/DT
mutation/NN
in/IN
the/DT
one/CD
gene/NN
that/WDT
caused/VBD
virulence/NN
./.
Then/RB
,/,
using/VBG
a/DT
new/JJ
technique/NN
recombination/NN
genes/NNS
into/IN
cells/NNS
,/,
they/PRP
transferred/VBD
all/DT
five/CD
genes/NNS
to/TO
bacteria/NNS
closely/RB
related/JJ
to/TO
the/DT
pertussis/NN
organism/NN
./.
These/DT
bacterial/JJ
``/``
cousins/NNS
''/''
ordinarily/RB
do/VBP
n't/RB
make/VBP
the/DT
toxin/NN
./.
But/CC
the/DT
genes/NNS
were/VBD
accompanied/VBN
by/IN
a/DT
piece/NN
of/IN
DNA/NNP
,/,
called/VBD
a/DT
promoter/NN
,/,
that/WDT
turns/VBZ
the/DT
genes/NNS
on/RP
./.
The/DT
new/JJ
bacteria/NNS
recipients/NNS
of/IN
the/DT
genes/NNS
began/VBD
producing/VBG
pertussis/NN
toxin/NN
which/WDT
,/,
because/IN
of/IN
the/DT
mutant/JJ
virulence/NN
gene/NN
,/,
was/VBD
no/DT
longer/JJR
toxic/NN
./.
Experiments/NNS
showed/VBD
that/IN
the/DT
new/JJ
,/,
non-virulent/JJ
toxin/NN
is/VBZ
capable/JJ
of/IN
inducing/VBG
immunity/NN
,/,
according/VBG
to/TO
the/DT
researchers/NNS
from/IN
the/DT
Selavo/NNP
Research/NNP
Center/NNP
in/IN
Siena/NNP
,/,
Italy/NNP
,/,
the/DT
Medical/NNP
College/NNP
of/IN
Wisconsin/NNP
in/IN
Milwaukee/NNP
and/CC
the/DT
Japanese/JJ
National/NNP
Institutes/NNPS
of/IN
Health/NNP
./.
Carl/NNP
E./NNP
Pissocra/NNP
,/,
president/NN
and/CC
chief/JJ
executive/NN
officer/NN
of/IN
Bank/NNP
One/NNP
,/,
Dover/NNP
,/,
has/VBZ
been/VBN
named/VBN
regional/JJ
president/NN
,/,
a/DT
new/JJ
post/NN
at/IN
the/DT
bank-holding/JJ
company/NN
./.
Mr./NNP
Pissocra/NNP
,/,
56/CD
years/NNS
old/JJ
,/,
will/MD
be/VB
responsible/JJ
for/IN
the/DT
company/NN
's/POS
10/CD
banks/NNS
in/IN
the/DT
Eastern/JJ
region/NN
./.
Dan/NNP
J./NNP
Hartwell/NNP
,/,
41/CD
,/,
executive/NN
vice/NN
president/NN
of/IN
Bank/NNP
One/NNP
,/,
Dover/NNP
,/,
was/VBD
named/VBN
president/NN
and/CC
chief/JJ
executive/NN
of/IN
the/DT
Dover/NNP
bank/NN
,/,
succeeding/VBG
Mr./NNP
Pissocra/NNP
./.
No/DT
one/NN
was/VBD
named/VBN
to/TO
succeed/VB
Mr./NNP
Hartwell/NNP
./.
At/IN
a/DT
time/NN
when/WRB
foreign/JJ
banks/NNS
are/VBP
pouring/VBG
vast/JJ
resources/NNS
and/CC
personnel/NNS
into/IN
West/NNP
Germany/NNP
's/POS
financial/JJ
center/NN
,/,
the/DT
opening/NN
of/IN
a/DT
three-man/JJ
office/NN
on/IN
a/DT
Frankfurt/NNP
side/JJ
street/NN
should/MD
n't/RB
attract/VB
much/JJ
attention/NN
./.
Unless/IN
,/,
of/IN
course/NN
,/,
it/PRP
happens/VBZ
to/TO
be/VB
run/VBN
by/IN
the/DT
Rothschilds/NNPS
./.
After/IN
an/DT
88-year/JJ
absence/NN
from/IN
the/DT
birthplace/NN
of/IN
the/DT
family/NN
banking/NN
empire/NN
,/,
the/DT
return/NN
of/IN
the/DT
Rothschild/NNP
group/NN
to/TO
Frankfurt/NNP
was/VBD
greeted/VBN
by/IN
the/DT
glare/NN
of/IN
television/NN
lights/NNS
,/,
curious/JJ
reporters/NNS
and/CC
a/DT
mayoral/JJ
reception/NN
in/IN
Town/NNP
Hall/NNP
./.
Like/IN
other/JJ
foreign/JJ
banks/NNS
establishing/VBG
a/DT
presence/NN
here/RB
,/,
the/DT
family/NN
describes/VBZ
its/PRP$
move/NN
as/IN
a/DT
calculated/JJ
decision/NN
to/TO
set/VB
up/RP
a/DT
financial/JJ
services/NNS
outlet/NN
in/IN
Europe/NNP
's/POS
largest/JJS
economy/NN
ahead/RB
of/IN
the/DT
integration/NN
of/IN
European/NNP
Community/NNP
markets/VBZ
after/IN
1992/CD
./.
Yet/CC
the/DT
Rothschilds/NNPS
do/VBP
n't/RB
deny/VB
an/DT
emotional/JJ
element/NN
to/TO
the/DT
decision/NN
./.
In/IN
1796/CD
,/,
Mayer/NNP
Amschel/NNP
Rothschild/NNP
founded/VBD
Bankhaus/NNP
M.A./NNP
Rothschild/NNP
&/CC
Sons/NNPS
and/CC
later/RB
sent/VBD
his/PRP$
four/CD
sons/NNS
to/TO
London/NNP
,/,
Paris/NNP
,/,
Vienna/NNP
and/CC
Naples/NNP
to/TO
begin/VB
the/DT
bank/NN
's/POS
expansion/NN
during/IN
the/DT
early/JJ
19th/JJ
century/NN
./.
The/DT
original/JJ
bank/NN
in/IN
Frankfurt/NNP
closed/VBD
in/IN
1901/CD
after/IN
the/DT
death/NN
of/IN
Wilhelm/NNP
Carl/NNP
von/NNP
Rothschild/NNP
,/,
and/CC
the/DT
family/NN
's/POS
banking/NN
activities/NNS
focused/VBD
on/IN
London/NNP
and/CC
Paris/NNP
./.
Baron/NNP
Elie/NNP
de/FW
Rothschild/NNP
,/,
the/DT
family/NN
's/POS
elder/JJR
spokesman/NN
,/,
explains/VBZ
that/IN
by/IN
the/DT
end/NN
of/IN
the/DT
19th/JJ
century/NN
,/,
Berlin/NNP
had/VBD
replaced/VBN
Frankfurt/NNP
as/IN
Germany/NNP
's/POS
financial/JJ
center/NN
./.
Yet/RB
the/DT
chief/JJ
reason/NN
for/IN
the/DT
closure/NN
,/,
he/PRP
says/VBZ
,/,
was/VBD
rooted/VBN
in/IN
a/DT
family/NN
tradition/NN
that/WDT
would/MD
n't/RB
allow/VB
a/DT
bank/NN
to/TO
bear/VB
the/DT
Rothschild/NNP
name/NN
without/IN
a/DT
Rothschild/NNP
in/IN
its/PRP$
management/NN
./.
``/``
At/IN
the/DT
time/NN
we/PRP
had/VBD
only/JJ
daughters/NNS
,/,
''/''
explains/VBZ
the/DT
72-year-old/JJ
patriarch/NN
,/,
``/``
so/RB
we/PRP
had/VBD
to/TO
close/VB
the/DT
bank/NN
./.
''/''
Much/JJ
of/IN
the/DT
family/NN
's/POS
mystique/NN
remained/VBD
./.
Although/IN
its/PRP$
palatial/JJ
residence/NN
was/VBD
destroyed/VBN
by/IN
bombs/NNS
during/IN
World/NNP
War/NNP
II/NNP
,/,
the/DT
Rothschilds/NNPS
'/POS
place/NN
in/IN
Frankfurt/NNPS
's/POS
history/NN
is/VBZ
still/RB
recalled/VBN
by/IN
the/DT
city/NN
park/NN
and/CC
a/DT
street/NN
bearing/VBG
the/DT
Rothschild/NNP
name/NN
./.
The/DT
family/NN
's/POS
long/JJ
absence/NN
is/VBZ
understandable/JJ
./.
The/DT
family/NN
was/VBD
in/IN
Allied/JJ
countries/NNS
during/IN
both/DT
World/NNP
War/NNP
I/NNP
and/CC
the/DT
long/JJ
period/NN
of/IN
economic/JJ
strife/NN
of/IN
the/DT
1920s/NN
./.
During/IN
the/DT
Third/NNP
Reich/NNP
,/,
the/DT
Rothschilds/NNPS
were/VBD
a/DT
target/NN
of/IN
Nazi/JJ
propaganda/NN
against/IN
Jewish/JJ
financiers/NNS
./.
The/DT
persecution/NN
pursued/VBD
the/DT
Rothschilds/NNPS
across/IN
Europe/NNP
as/IN
the/DT
Nazis/NNPS
grabbed/VBD
countries/NNS
,/,
confiscating/VBG
the/DT
family/NN
's/POS
property/NN
in/IN
the/DT
process/NN
./.
American/JJ
journalist/NN
William/NNP
L./NNP
Shirer/NNP
,/,
in/IN
his/PRP$
book/NN
``/``
The/DT
Rise/NN
and/CC
Fall/NN
of/IN
the/DT
Third/NNP
Reich/NNP
,/,
''/''
wrote/VBD
of/IN
how/WRB
in/IN
Vienna/NNP
he/PRP
had/VBD
witnessed/VBN
``/``
squads/NNS
of/IN
{/(
Nazi/JJ
SS/NNP
men/NNS
carting/VBG
off/RP
silver/NN
,/,
tapestries/NNS
,/,
paintings/NNS
and/CC
other/JJ
loot/NN
from/IN
the/DT
Rothschild/NNP
palace/NN
./.
''/''
In/IN
the/DT
immediate/JJ
postwar/JJ
years/NNS
,/,
the/DT
Rothschilds/NNPS
concentrated/VBD
on/IN
rebuilding/VBG
their/PRP$
other/JJ
European/JJ
operations/NNS
,/,
delaying/VBG
their/PRP$
return/NN
to/TO
Frankfurt/NNP
./.
``/``
For/IN
a/DT
member/NN
of/IN
the/DT
Rothschild/NNP
family/NN
,/,
the/DT
return/NN
to/TO
Frankfurt/NNP
is/VBZ
a/DT
very/RB
meaningful/JJ
event/NN
,/,
although/IN
it/PRP
might/MD
not/RB
mean/VB
as/RB
much/RB
to/TO
German/JJ
banking/NN
as/IN
it/PRP
means/VBZ
to/TO
us/PRP
,/,
''/''
says/VBZ
Baron/NNP
David/NNP
de/FW
Rothschild/NNP
,/,
Elie/NNP
's/POS
younger/JJR
cousin/NN
and/CC
a/DT
partner/NN
in/IN
Rothschild/NNP
&/CC
Cie/NNP
./.
Banque/NNP
in/FW
Paris/NNP
./.
Indeed/RB
,/,
the/DT
competition/NN
is/VBZ
n't/RB
greatly/RB
concerned/JJ
./.
``/``
It/PRP
would/MD
be/VB
surprising/JJ
if/IN
they/PRP
did/VBD
n't/RB
come/VBN
to/TO
Frankfurt/NNP
in/IN
time/NN
for/IN
1992/CD
,/,
and/CC
they/PRP
bring/VBP
an/DT
interesting/JJ
tradition/NN
./.
But/CC
the/DT
market/NN
really/RB
is/VBZ
n't/RB
going/VBG
to/TO
be/VB
stood/VBN
on/IN
its/PRP$
head/NN
,/,
''/''
said/VBD
a/DT
banker/NN
at/IN
one/CD
of/IN
Frankfurt/NNP
's/POS
Big/JJ
Three/CD
banks/NNS
./.
The/DT
return/NN
of/IN
the/DT
Rothschilds/NNPS
is/VBZ
modest/JJ
./.
The/DT
new/JJ
representative/JJ
office/NN
,/,
with/IN
one/CD
manager/NN
and/CC
two/CD
assistants/NNS
--/:
none/NN
a/DT
member/NN
of/IN
the/DT
Rothschild/NNP
family/NN
--/:
will/MD
carry/VB
out/RP
no/DT
banking/VBG
operations/NNS
of/IN
its/PRP$
own/JJ
./.
Instead/RB
,/,
it/PRP
is/VBZ
to/TO
seek/VB
out/RP
corporate/JJ
financing/NN
business/NN
and/CC
sell/VB
investment/NN
products/NNS
on/IN
behalf/NN
of/IN
the/DT
family/NN
's/POS
mainstay/NN
banking/VBG
units/NNS
:/:
N/NNP
M/NNP
Rothschild/NNP
&/CC
Sons/NNP
Ltd./NNP
in/IN
London/NNP
,/,
Rothschild/NNP
&/CC
Cie./NNP
in/IN
Paris/NNP
and/CC
Rothschild/NNP
Bank/NNP
AG/NNP
in/IN
Zurich/NNP
./.
The/DT
constraints/NNS
do/VBP
n't/RB
bother/VB
the/DT
office/NN
's/POS
54-year-old/JJ
manager/NN
,/,
Erich/NNP
Stromeyer/NNP
./.
He/PRP
left/VBD
his/PRP$
job/NN
as/IN
general/JJ
manager/NN
of/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Holdings/NNPS
Inc./NNP
's/POS
Frankfurt/NNP
office/NN
because/RB
,/,
he/PRP
says/VBZ
,/,
``/``
When/WRB
the/DT
Rothschilds/NNPS
called/VBD
,/,
I/PRP
could/MD
n't/RB
resist/VB
./.
''/''
Each/DT
Rothschild/NNP
bank/NN
is/VBZ
linked/VBN
by/IN
family/NN
ties/NNS
and/CC
cross-ownership/NN
./.
In/IN
March/NNP
,/,
N/NNP
M/NNP
Rothschild/NNP
in/IN
London/NNP
and/CC
Rothschild/NNP
Bank/NNP
in/IN
Zurich/NNP
showed/VBD
assets/NNS
of/IN
#/#
4.1/CD
billion/CD
$/$
6.51/CD
billion/CD
1.26/CD
billion/CD
Swiss/JJ
francs/NNS
$/$
774/CD
million/CD
The/DT
Paris/NNP
bank/NN
does/VBZ
n't/RB
publish/VB
that/DT
figure/NN
./.
In/IN
Europe/NNP
,/,
the/DT
Rothschilds/NNPS
banks/NNS
are/VBP
focusing/VBG
on/IN
mergers/NNS
and/CC
acquisitions/NNS
as/IN
European/JJ
industry/NN
restructures/VBZ
ahead/RB
of/IN
1992/CD
./.
Yet/RB
the/DT
group/NN
's/POS
limited/JJ
resources/NNS
makes/VBZ
it/PRP
a/DT
niche/NN
player/NN
./.
``/``
Obviously/RB
,/,
there/EX
are/VBP
quantitative/JJ
limitations/NNS
on/IN
the/DT
assistance/NN
we/PRP
can/MD
provide/VB
,/,
''/''
concedes/VBZ
Baron/NNP
David/NNP
de/FW
Rothschild/NNP
,/,
``/``
but/CC
we/PRP
feel/VBP
we/PRP
have/VBP
some/DT
cards/NNS
to/TO
play/VB
./.
''/''
Among/IN
them/PRP
,/,
he/PRP
says/VBZ
,/,
is/VBZ
the/DT
family/NN
's/POS
traditional/JJ
ties/NNS
to/TO
old/JJ
wealth/NN
and/CC
decision-makers/NNS
in/IN
banking/NN
and/CC
industry/NN
throughout/IN
Europe/NNP
and/CC
beyond/IN
./.
The/DT
Rothschilds/NNPS
hope/NN
to/TO
use/VB
a/DT
long/JJ
history/NN
in/IN
private/JJ
banking/NN
and/CC
an/DT
aura/NN
of/IN
exclusivity/NN
to/TO
attract/VB
private/JJ
and/CC
institutional/JJ
investors/NNS
./.
As/RB
at/IN
the/DT
Zurich/NNP
bank/NN
,/,
the/DT
minimum/NN
investment/NN
for/IN
individuals/NNS
will/MD
be/VB
high/JJ
:/:
about/IN
a/DT
million/CD
German/JJ
marks/NNS
$/$
538,000/CD
three/CD
times/NNS
what/WP
many/JJ
other/JJ
West/JJ
German/JJ
investment/NN
banks/NNS
require/VBP
./.
``/``
But/CC
we/PRP
do/VBP
make/VB
exceptions/NNS
,/,
''/''
says/VBZ
a/DT
smiling/VBG
Baron/NNP
Elie/NNP
de/FW
Rothschild/NNP
,/,
``/``
especially/RB
if/IN
they/PRP
are/VBP
very/RB
young/JJ
and/CC
have/VB
very/RB
rich/JJ
parents/NNS
./.
''/''
As/IN
program/NN
trading/NN
comes/VBZ
under/IN
renewed/VBN
attack/NN
for/IN
causing/VBG
stock/NN
market/NN
gyrations/NNS
,/,
a/DT
few/JJ
people/NNS
on/IN
Wall/NNP
Street/NNP
say/VBP
it/PRP
is/VBZ
time/NN
to/TO
consider/VB
extreme/JJ
measures/NNS
./.
The/DT
real/JJ
answer/NN
to/TO
curbing/VBG
wild/JJ
swings/NNS
in/IN
stock/NN
prices/NNS
,/,
they/PRP
say/VBP
,/,
might/MD
be/VB
to/TO
curb/VB
or/CC
even/RB
abolish/VB
stock-index/NN
futures/NNS
./.
A/DT
stock-index/NN
future/NN
is/VBZ
a/DT
contract/NN
to/TO
buy/VB
or/CC
sell/VB
the/DT
market/NN
value/NN
of/IN
a/DT
basket/NN
of/IN
stocks/NNS
,/,
such/JJ
as/IN
the/DT
Standard/NNP
&/CC
Poor/NNP
's/POS
500-stock/JJ
index/NN
./.
Since/IN
stock/NN
futures/NNS
were/VBD
created/VBN
in/IN
1982/CD
,/,
trading/VBG
on/IN
the/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
and/CC
other/JJ
exchanges/NNS
has/VBZ
boomed/VBN
to/TO
the/DT
point/NN
where/WRB
trading/NN
in/IN
stock-index/NN
futures/NNS
rivals/VBZ
that/DT
in/IN
the/DT
stocks/NNS
themselves/PRP
./.
The/DT
conventional/JJ
view/NN
,/,
as/IN
voiced/VBN
by/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
partner/NN
Fischer/NNP
Black/NNP
,/,
is/VBZ
that/IN
stocks/NNS
and/CC
``/``
derivatives/NNS
''/''
such/JJ
as/IN
futures/NNS
and/CC
options/NNS
``/``
form/VBP
a/DT
single/JJ
market/NN
,/,
and/CC
that/IN
derivatives/NNS
make/VBP
it/PRP
a/DT
more/RBR
liquid/JJ
market/NN
./.
''/''
But/CC
increasingly/RB
,/,
people/NNS
are/VBP
questioning/VBG
that/DT
view/NN
,/,
and/CC
the/DT
critics/NNS
include/VBP
some/DT
of/IN
the/DT
country/NN
's/VBZ
most/RBS
successful/JJ
investors/NNS
./.
Warren/NNP
Buffett/NNP
has/VBZ
been/VBN
on/IN
record/NN
as/IN
opposing/VBG
stock-index/NN
futures/NNS
since/IN
their/PRP$
inception/NN
in/IN
1982/CD
./.
And/CC
Mario/NNP
Gabelli/NNP
,/,
another/DT
star/NN
in/IN
the/DT
investing/NN
world/NN
,/,
says/VBZ
,/,
``/``
My/PRP$
gut/NN
says/VBZ
the/DT
negatives/NNS
of/IN
futures/NNS
and/CC
synthetics/NNS
far/RB
outweigh/VBP
the/DT
benefits/NNS
./.
''/''
Like/IN
others/NNS
,/,
Mr./NNP
Gabelli/NNP
says/VBZ
that/IN
if/IN
futures/NNS
cause/VBP
investors/NNS
to/TO
lose/VB
confidence/NN
in/IN
stocks/NNS
,/,
they/PRP
will/MD
move/VB
away/RB
from/IN
stocks/NNS
--/:
as/IN
many/JJ
have/VBP
already/RB
done/VBN
./.
And/CC
those/DT
who/WP
remain/VBP
,/,
he/PRP
says/VBZ
``/``
will/MD
demand/VB
a/DT
higher/JJR
return/NN
and/CC
over/IN
time/NN
raise/VB
the/DT
cost/NN
of/IN
capital/NN
to/TO
companies/NNS
./.
''/''
Essentially/RB
,/,
the/DT
critics/NNS
of/IN
stock-index/NN
futures/NNS
fall/VBP
into/IN
two/CD
camps/NNS
./.
One/CD
group/NN
says/VBZ
the/DT
futures/NNS
contribute/VBP
to/TO
stock/VB
market/NN
volatility/NN
;/:
the/DT
other/JJ
contends/VBZ
that/IN
futures/NNS
are/VBP
a/DT
sideshow/NN
of/IN
speculation/NN
that/WDT
detracts/VBZ
from/IN
the/DT
stock/NN
market/NN
's/POS
basic/JJ
function/NN
of/IN
raising/VBG
capital/NN
./.
``/``
Before/IN
futures/NNS
,/,
''/''
says/VBZ
New/NNP
York/NNP
investor/NN
Michael/NNP
Harkins/NNP
,/,
``/``
you/PRP
actually/RB
had/VBD
to/TO
pay/VB
attention/NN
to/TO
whether/IN
the/DT
thing/NN
you/PRP
were/VBD
buying/VBG
had/VBD
any/DT
intrinsic/JJ
value/NN
./.
''/''
While/IN
it/PRP
was/VBD
once/RB
expected/VBN
that/IN
futures/NNS
would/MD
mimic/VB
stock/NN
prices/NNS
,/,
traders/NNS
now/RB
routinely/RB
check/VBP
the/DT
futures/NNS
markets/NNS
in/IN
Chicago/NNP
before/IN
they/PRP
buy/VBP
or/CC
sell/VBP
stocks/NNS
./.
When/WRB
Chicago/NNP
futures/NNS
prices/NNS
jump/VBP
up/RB
or/CC
down/RB
,/,
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
follows/VBZ
./.
On/IN
Tuesday/NNP
,/,
for/IN
instance/NN
,/,
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
plunged/VBD
80/CD
points/NNS
in/IN
little/RB
more/JJR
than/IN
an/DT
hour/NN
./.
Then/RB
,/,
in/IN
the/DT
space/NN
of/IN
a/DT
20-minute/JJ
coffee/NN
break/NN
,/,
the/DT
average/NN
rallied/VBD
almost/RB
all/DT
of/IN
the/DT
way/NN
back/RB
./.
Paul/NNP
Lesutis/NNP
,/,
who/WP
manages/VBZ
more/JJR
than/IN
$/$
3/CD
billion/CD
of/IN
investments/NNS
at/IN
Provident/NNP
Capital/NNP
Management/NNP
Inc./NNP
,/,
blames/VBZ
futures/NNS
markets/NNS
for/IN
leading/VBG
the/DT
way/NN
./.
``/``
The/DT
fundamentals/NNS
do/VBP
n't/RB
change/VB
in/IN
an/DT
hour/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
I/PRP
think/VBP
they/PRP
should/MD
close/VB
down/RP
the/DT
futures/NNS
exchange/NN
and/CC
then/RB
we/PRP
could/MD
get/VB
back/RB
to/TO
investing/NN
./.
''/''
Index/NN
arbitrage/NN
--/:
the/DT
rapid-fire/JJ
buying/NN
and/CC
selling/NN
of/IN
stocks/NNS
offset/VBN
with/IN
opposite/JJ
trades/NNS
in/IN
futures/NNS
--/:
is/VBZ
frequently/RB
blamed/VBN
for/IN
adding/VBG
to/TO
stock/NN
market/NN
volatility/NN
./.
Although/IN
index/NN
arbitrage/NN
is/VBZ
said/VBN
to/TO

add/VB
liquidity/NN
to/TO
markets/NNS
,/,
John/NNP
Bachmann/NNP
,/,
managing/VBG
partner/NN
of/IN
Edward/NNP
D./NNP
Jones/NNP
,/,
says/VBZ
too/RB
much/JJ
liquidity/NN
is/VBZ
n't/RB
a/DT
good/JJ
thing/NN
``/``
The/DT
kind/NN
of/IN
instant/NN
liquidity/NN
that/WDT
is/VBZ
implied/VBN
by/IN
index/NN
futures/NNS
is/VBZ
that/IN
you/PRP
can/MD
buy/VB
a/DT
portfolio/NN
over/IN
two/CD
years/NNS
and/CC
get/VB
out/RB
in/IN
one/CD
day/NN
./.
It/PRP
's/VBZ
too/RB
disruptive/JJ
,/,
''/''
he/PRP
says/VBZ
./.
``/``
It/PRP
is/VBZ
n't/RB
investing/NN
./.
''/''
But/CC
stock-index/NN
futures/NNS
have/VBP
plenty/NN
of/IN
support/NN
./.
Defenders/NNS
say/VBP
futures/NNS
make/VBP
markets/NNS
more/RBR
efficient/JJ
and/CC
provide/VBP
ways/NNS
for/IN
investors/NNS
to/TO
reduce/VB
risks/NNS
./.
They/PRP
note/VBP
that/IN
stocks/NNS
experienced/VBD
volatile/JJ
swings/NNS
long/RB
before/RB
futures/NNS
./.
And/CC
,/,
defenders/NNS
say/VBP
,/,
few/JJ
people/NNS
complain/VBP
about/IN
futures/NNS
when/WRB
stock/NN
prices/NNS
are/VBP
rising/VBG
./.
Louis/NNP
Margolis/NNP
,/,
managing/VBG
director/NN
in/IN
charge/NN
of/IN
equity/NN
options/NNS
and/CC
futures/NNS
at/IN
Salomon/NNP
Inc./NNP
,/,
says/VBZ
that/IN
trading/VBG
baskets/NNS
of/IN
stocks/NNS
began/VBD
in/IN
the/DT
1970s/NNS
,/,
a/DT
decade/NN
before/IN
the/DT
advent/NN
of/IN
futures/NNS
./.
Futures/NNS
,/,
he/PRP
says/VBZ
,/,
merely/RB
cut/VBD
down/RB
on/IN
trading/NN
costs/NNS
./.
He/PRP
says/VBZ
``/``
blaming/VBG
futures/NNS
is/VBZ
like/IN
blaming/VBG
the/DT
messenger/NN
./.
''/''
Since/IN
stock-index/NN
arbitrage/NN
merely/RB
narrows/VBZ
the/DT
gap/NN
between/IN
prices/NNS
in/IN
the/DT
futures/NNS
and/CC
stock/NN
markets/NNS
,/,
it/PRP
ca/MD
n't/RB
add/VB
to/TO
volatility/NN
,/,
he/PRP
says/VBZ
./.
Futures/NNS
``/``
do/VBP
n't/RB
need/VB
defending/VBG
,/,
''/''
says/VBZ
Andrew/NNP
Yemma/NNP
,/,
a/DT
spokesman/NN
for/IN
the/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
,/,
which/WDT
trades/VBZ
the/DT
S&P/NNP
500/CD
,/,
by/IN
far/RB
the/DT
largest/JJS
stock-index/NN
futures/NNS
contract/NN
./.
Despite/IN
the/DT
current/JJ
outcry/NN
over/IN
stock/NN
market/NN
volatility/NN
,/,
few/JJ
people/NNS
expect/VBP
stock/NN
futures/NNS
to/TO
disappear/VB
./.
For/IN
one/CD
thing/NN
,/,
the/DT
Chicago/NNP
futures/NNS
exchanges/NNS
have/VBP
political/JJ
and/CC
financial/JJ
clout/NN
--/:
including/VBG
many/JJ
friends/NNS
in/IN
Congress/NNP
./.
And/CC
traders/NNS
say/VBP
that/IN
futures/NNS
have/VBP
become/VBN
an/DT
accepted/JJ
part/NN
of/IN
the/DT
financial/JJ
landscape/NN
./.
``/``
All/DT
life/NN
is/VBZ
about/IN
change/NN
--/:
either/CC
you/PRP
adapt/VBP
or/CC
die/VBP
,/,
''/''
says/VBZ
one/CD
Chicago/NNP
futures/NNS
trader/NN
./.
``/``
If/IN
futures/NNS
are/VBP
n't/RB
permitted/VBN
here/RB
,/,
we/PRP
'll/MD
take/VB
it/PRP
to/TO
Australia/NNP
or/CC
Tokyo/NNP
./.
''/''
Average/JJ
daily/JJ
volume/NN
in/IN
S&P/NNP
500/CD
futures/NNS
last/JJ
year/NN
was/VBD
44,877/CD
contracts/NNS
./.
Based/VBN
on/IN
yesterday/NN
's/POS
closing/NN
price/NN
of/IN
the/DT
S&P/NNP
,/,
the/DT
average/JJ
value/NN
of/IN
one/CD
day/NN
's/POS
trading/NN
amounts/NNS
to/TO
$/$
7.6/CD
billion/CD
./.
By/IN
contrast/NN
,/,
average/JJ
dollar/NN
volume/NN
on/IN
the/DT
Big/NNP
Board/NNP
last/JJ
year/NN
was/VBD
$/$
5.3/CD
billion/CD
./.
Many/JJ
investment/NN
managers/NNS
say/VBP
futures/NNS
are/VBP
useful/JJ
as/IN
a/DT
way/NN
to/TO
hedge/VB
portfolios/NNS
./.
If/IN
managers/NNS
fear/VBP
that/IN
the/DT
overall/JJ
stock/NN
market/NN
will/MD
fall/VB
,/,
but/CC
want/VBP
to/TO
continue/VB
owning/VBG
stocks/NNS
,/,
they/PRP
can/MD
hold/VB
on/RB
to/TO
specific/JJ
stocks/NNS
and/CC
sell/VB
a/DT
corresponding/JJ
amount/NN
of/IN
futures/NNS
contracts/NNS
./.
Average/JJ
daily/JJ
volume/NN
in/IN
S&P/NNP
500/CD
futures/NNS
last/JJ
year/NN
was/VBD
44,877/CD
contracts/NNS
./.
Based/VBN
on/IN
yesterday/NN
's/POS
closing/NN
price/NN
of/IN
the/DT
S&P/NNP
,/,
the/DT
average/JJ
value/NN
of/IN
one/CD
day/NN
's/POS
trading/NN
amounts/NNS
to/TO
$/$
7.6/CD
billion/CD
./.
By/IN
contrast/NN
,/,
average/JJ
dollar/NN
volume/NN
on/IN
the/DT
Big/NNP
Board/NNP
last/JJ
year/NN
was/VBD
$/$
5.3/CD
billion/CD
./.
Many/JJ
investment/NN
managers/NNS
say/VBP
futures/NNS
are/VBP
useful/JJ
as/IN
a/DT
way/NN
to/TO
hedge/VB
portfolios/NNS
./.
If/IN
managers/NNS
fear/VBP
that/IN
the/DT
overall/JJ
stock/NN
market/NN
will/MD
fall/VB
,/,
but/CC
want/VBP
to/TO
continue/VB
owning/NN
stocks/NNS
,/,
they/PRP
can/MD
hold/VB
on/IN
to/TO
specific/JJ
stocks/NNS
and/CC
sell/VB
a/DT
corresponding/JJ
amount/NN
of/IN
futures/NNS
contracts/NNS
./.
And/CC
although/IN
criticism/NN
of/IN
futures/NNS
generally/RB
comes/VBZ
from/IN
Wall/NNP
Street/NNP
,/,
one/CD
Chicago/NNP
futures/NNS
trader/NN
notes/VBZ
that/IN
brokerage/NN
firms/NNS
rely/VBP
on/IN
futures/NNS
as/IN
hedging/NN
tools/NNS
when/WRB
they/PRP
buy/VBP
and/CC
sell/VBP
big/JJ
blocks/NNS
of/IN
stocks/NNS
from/IN
institutions/NNS
./.
One/CD
reason/NN
futures/NNS
are/VBP
said/VBN
to/TO
add/VB
volatility/NN
is/VBZ
that/DT
--/:
unlike/IN
in/IN
stocks/NNS
--/:
people/NNS
can/MD
speculate/VB
in/IN
futures/NNS
with/IN
little/JJ
money/NN
down/RP
./.
Margin/NN
requirements/NNS
for/IN
speculators/NNS
on/IN
the/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
are/VBP
currently/RB
about/IN
7/CD
%/NN
./.
``/``
For/IN
$/$
10/CD
million/CD
,/,
you/PRP
can/MD
move/VB
$/$
100/CD
million/CD
of/IN
stocks/NNS
,/,
''/''
a/DT
specialist/NN
on/IN
the/DT
Big/NNP
Board/NNP
gripes/VBZ
./.
``/``
That/DT
gives/VBZ
futures/NNS
traders/NNS
a/DT
lot/RB
more/JJR
power/NN
./.
''/''
By/IN
contrast/NN
,/,
an/DT
investor/NN
in/IN
stocks/NNS
must/MD
put/VB
up/RP
50/CD
%/NN
in/IN
cash/NN
./.
Some/DT
critics/NNS
say/VBP
futures/NNS
encourage/VBP
people/NNS
to/TO
think/VB
of/IN
stocks/NNS
as/IN
a/DT
single/JJ
commodity/NN
,/,
rather/RB
than/IN
as/IN
investments/NNS
in/IN
individual/JJ
businesses/NNS
./.
Thus/RB
,/,
they/PRP
say/VBP
,/,
futures/NNS
inhibit/VBP
the/DT
basic/JJ
purpose/NN
of/IN
the/DT
stock/NN
market/NN
:/:
to/TO
accurately/RB
price/VB
securities/NNS
so/IN
that/IN
capital/NN
and/CC
investment/NN
flows/VBZ
where/WRB
it/PRP
's/VBZ
needed/VBN
most/RBS
./.
The/DT
S&P/NNP
500/CD
index/NN
futures/NNS
``/``
transferred/VBD
the/DT
identity/NN
of/IN
500/CD
stocks/NNS
into/IN
one/CD
unit/NN
-/:
making/VBG
them/PRP
a/DT
simple/JJ
commodity/NN
to/TO
trade/VB
,/,
''/''
says/VBZ
George/NNP
Kegler/NNP
,/,
senior/JJ
vice/NN
president/NN
at/IN
A./NN
Webster/NNP
Dougherty/NNP
in/IN
Philadelphia/NNP
./.
``/``
It/PRP
took/VBD
away/RB
the/DT
need/NN
to/TO
know/VB
the/DT
bad/JJ
third-quarter/JJ
report/NN
of/IN
IBM/NNP
,/,
for/IN
example/NN
,/,
''/''
Mr./NNP
Kegler/NNP
says/VBZ
./.
Of/IN
course/NN
,/,
portfolio/NN
trading/NN
--/:
the/DT
increasingly/RB
common/JJ
practice/NN
of/IN
buying/VBG
or/CC
selling/VBG
baskets/NNS
of/IN
actual/JJ
stocks/NNS
--/:
also/RB
treats/VBZ
stocks/NNS
as/IN
homogenous/JJ
commodities/NNS
./.
``/``
There/EX
is/VBZ
a/DT
class/NN
of/IN
investor/NN
that/WDT
wants/VBZ
to/TO
be/VB
exposed/VBN
''/''
to/TO
the/DT
whole/JJ
market/NN
,/,
says/VBZ
Sandip/NNP
Bhagat/NNP
,/,
assistant/NN
vice/NN
president/NN
at/IN
Travelers/NNPS
Investment/NNP
Management/NNP
Co/NNP
./.
The/DT
S&P/NNP
futures/NNS
are/VBP
merely/RB
a/DT
``/``
cheaper/JJR
and/CC
quicker/JJR
''/''
way/NN
to/TO
get/VB
access/NN
to/TO
all/DT
500/CD
stocks/NNS
,/,
he/PRP
says/VBZ
./.
The/DT
Big/NNP
Board/NNP
yesterday/NN
began/VBD
trading/VBG
in/IN
its/PRP$
own/JJ
basket/NN
trading/NN
vehicle/NN
representing/VBG
the/DT
S&P/NNP
500/CD
stocks/NNS
./.
But/CC
owning/VBG
index/NN
futures/NNS
is/VBZ
n't/RB
the/DT
same/JJ
as/IN
owning/VBG
the/DT
underlying/VBG
stocks/NNS
./.
Stockholders/NNS
,/,
as/IN
a/DT
group/NN
,/,
can/MD
win/VB
,/,
because/IN
they/PRP
own/VBP
a/DT
share/NN
of/IN
corporate/JJ
earnings/NNS
,/,
which/WDT
can/MD
grow/VB
and/CC
boost/VB
stock/NN
prices/NNS
./.
Futures/NNS
,/,
on/IN
the/DT
other/JJ
hand/NN
,/,
are/VBP
a/DT
zero/CD
sum/NN
game/NN
--/:
a/DT
market/NN
for/IN
making/VBG
side/JJ
bets/NNS
about/IN
the/DT
direction/NN
of/IN
stock/NN
prices/NNS
./.
``/``
You/PRP
do/VBP
n't/RB
own/VB
anything/NN
,/,
''/''
says/VBZ
Stephen/NNP
Boesel/NNP
,/,
a/DT
money/NN
manager/NN
for/IN
T./NNP
Rowe/NNP
Price/NNP
in/IN
Baltimore/NNP
./.
``/``
You/PRP
're/VBP
making/VBG
a/DT
pure/JJ
bet/NN
on/IN
the/DT
market/NN
./.
''/''
The/DT
European/NNP
Community/NNP
Commission/NNP
challenged/VBD
an/DT
agreement/NN
on/IN
routes/NNS
and/CC
fares/NNS
between/IN
France/NNP
's/POS
two/CD
largest/JJS
airlines/NNS
on/IN
antitrust/JJ
grounds/NNS
./.
Meeting/VBG
in/IN
Strasbourg/NNP
Wednesday/NNP
,/,
the/DT
commission/NN
voted/VBD
,/,
as/IN
expected/VBN
,/,
to/TO
formally/RB
object/VB
to/TO
the/DT
accord/NN
between/IN
Air/NNP
France/NNP
,/,
the/DT
state-owned/JJ
airline/NN
,/,
and/CC
state-controlled/JJ
domestic/JJ
carrier/NN
Air/NNP
Inter/NNP
./.
An/DT
EC/NNP
spokesman/NN
said/VBD
the/DT
two/CD
companies/NNS
will/MD
be/VB
notified/VBN
so/IN
they/PRP
can/MD
begin/VB
negotiations/NNS
with/IN
Brussels/NNP
on/IN
how/WRB
to/TO
modify/VB
the/DT
pact/NN
./.
At/IN
issue/NN
is/VBZ
an/DT
accord/NN
dating/VBG
back/RB
to/TO
March/NNP
in/IN
which/WDT
Air/NNP
France/NNP
gained/VBD
access/NN
to/TO
five/CD
domestic/JJ
French/JJ
routes/NNS
under/IN
Air/NNP
Inter/NNP
's/POS
flight/NN
numbers/NNS
and/CC
the/DT
domestic/JJ
airline/NN
got/VBD
to/TO
fly/VB
to/TO
five/CD
cities/NNS
outside/JJ
of/IN
France/NNP
under/IN
the/DT
flag/NN
of/IN
Air/NNP
France/NNP
./.
The/DT
two/CD
shared/VBD
results/NNS
from/IN
this/DT
route/NN
swap/NN
,/,
and/CC
followed/VBD
rules/NNS
on/IN
ticket/NN
pricing/NN
./.
The/DT
EC/NNP
Commission/NNP
decided/VBD
that/IN
such/JJ
an/DT
accord/NN
does/VBZ
n't/RB
benefit/VB
consumers/NNS
enough/RB
to/TO
merit/VB
an/DT
exemption/NN
from/IN
antitrust/JJ
law/NN
./.
The/DT
airlines/NNS
presented/VBD
it/PRP
as/IN
offering/VBG
consumers/NNS
more/JJR
choice/NN
and/CC
better/JJR
flight/NN
connections/NNS
./.
An/DT
Air/NNP
France/NNP
spokeswoman/NN
said/VBD
,/,
``/``
we/PRP
're/VBP
absolutely/RB
ready/JJ
to/TO
study/VB
all/DT
solutions/NNS
./.
''/''
An/DT
Air/NNP
Inter/NNP
spokesman/NN
said/VBD
,/,
``/``
Because/IN
they/PRP
the/DT
EC/NNP
doubts/NNS
,/,
we/PRP
will/MD
work/VB
again/RB
on/IN
the/DT
text/NN
and/CC
the/DT
contents/NNS
of/IN
the/DT
accord/NN
./.
''/''
A/DT
state/NN
appellate/NN
court/NN
reinstated/VBD
the/DT
1987/CD
convictions/NNS
of/IN
Pymm/NNP
Thermometer/NNP
Corp./NNP
and/CC
two/CD
of/IN
its/PRP$
executives/NNS
on/IN
charges/NNS
of/IN
assault/NN
for/IN
exposing/VBG
workers/NNS
to/TO
toxic/JJ
mercury/NN
vapors/NNS
./.
The/DT
indictment/NN
charged/VBD
that/DT
Pymm/NNP
operated/VBD
a/DT
machine/NN
to/TO
crush/VB
broken/JJ
thermometers/NNS
and/CC
recover/VB
the/DT
mercury/NN
in/IN
an/DT
illegal/JJ
workroom/NN
./.
The/DT
charges/NNS
said/VBD
that/IN
one/CD
worker/NN
suffered/VBD
permanent/JJ
brain/NN
damage/NN
from/IN
mercury/NN
exposure/NN
./.
The/DT
judge/NN
handling/VBG
the/DT
case/NN
in/IN
state/NN
Supreme/NNP
Court/NNP
,/,
a/DT
trial/NN
court/NN
,/,
had/VBD
tossed/VBN
out/RP
the/DT
jury/NN
verdicts/NNS
,/,
ruling/VBG
that/IN
the/DT
matter/NN
should/MD
have/VB
been/VBN
handled/VBN
under/IN
federal/JJ
Occupational/NNP
Safety/NNP
and/CC
Health/NNP
Administration/NNP
rules/NNS
./.
But/CC
the/DT
Appellate/NNP
Division/NNP
of/IN
State/NNP
Supreme/NNP
Court/NNP
held/VBD
that/DT
federal/JJ
law/NN
did/VBD
n't/RB
pre-empt/VB
the/DT
states/NNS
from/IN
such/JJ
a/DT
prosecution/NN
./.
Elizabeth/NNP
Holtzman/NNP
,/,
district/NN
attorney/NN
for/IN
Brooklyn/NNP
,/,
N.Y./NNP
,/,
said/VBD
,/,
``/``
The/DT
appellate/NN
division/NN
has/VBZ
agreed/VBN
with/IN
our/PRP$
view/NN
that/IN
despite/IN
federal/JJ
worker-safety/NN
laws/NNS
,/,
state/NN
prosecutors/NNS
have/VBP
the/DT
power/NN
to/TO
protect/VB
working/VBG
people/NNS
./.
''/''
Lawyers/NNS
for/IN
the/DT
company/NN
and/CC
executives/NNS
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
The/DT
executives/NNS
face/VBP
five/CD
to/TO
15/CD
years/NNS
in/IN
prison/NN
and/CC
fines/NNS
of/IN
$/$
5,000/CD
or/CC
double/JJ
the/DT
profit/NN
made/VBN
by/IN
failing/VBG
to/TO
comply/VB
with/IN
the/DT
rules/NNS
./.
The/DT
company/NN
could/MD
be/VB
fined/VBN
a/DT
maximum/NN
of/IN
$/$
10,000/CD
,/,
or/CC
double/JJ
the/DT
profit/NN
./.
General/NNP
Motors/NNPS
Corp./NNP
wants/VBZ
to/TO
buy/VB
as/RB
much/JJ
as/IN
15/CD
%/NN
of/IN
Jaguar/NNP
PLC/NNP
,/,
marking/VBG
its/PRP$
first/JJ
salvo/NN
in/IN
a/DT
possible/JJ
full-scale/JJ
battle/NN
against/IN
Ford/NNP
Motor/NNP
Co./NNP
for/IN
control/NN
of/IN
the/DT
British/JJ
car/NN
maker/NN
./.
GM/NNP
sought/VBD
U.S./NNP
antitrust/JJ
clearance/NN
last/JJ
week/NN
to/TO
purchase/VB
more/JJR
than/IN
$/$
15/CD
million/CD
worth/NN
of/IN
Jaguar/NNP
shares/NNS
but/CC
does/VBZ
n't/RB
own/VB
any/DT
yet/RB
,/,
according/VBG
to/TO
GM/NNP
officials/NNS
here/RB
and/CC
at/IN
the/DT
company/NN
's/POS
Detroit/NNP
headquarters/NN
./.
The/DT
No./NN
1/CD
U.S./NNP
auto/NN
maker/NN
then/RB
wrote/VBD
Jaguar/NNP
that/IN
it/PRP
intends/VBZ
``/``
to/TO
go/VB
to/TO
that/DT
15/CD
%/NN
''/''
level/NN
once/IN
it/PRP
wins/VBZ
the/DT
U.S./JJ
clearance/NN
to/TO
go/VB
beyond/IN
$/$
15/CD
million/CD
,/,
a/DT
Jaguar/NNP
spokesman/NN
said/VBD
yesterday/NN
./.
The/DT
GM/NNP
move/NN
follows/VBZ
Tuesday/NNP
's/POS
declaration/NN
by/IN
Ford/NNP
,/,
which/WDT
holds/VBZ
an/DT
unwelcome/JJ
12.45/CD
%/NN
stake/NN
in/IN
Jaguar/NNP
,/,
that/IN
it/PRP
is/VBZ
prepared/JJ
to/TO
bid/VB
for/IN
the/DT
entire/JJ
company/NN
./.
GM/NNP
is/VBZ
close/JJ
to/TO
completing/VBG
a/DT
friendly/JJ
deal/NN
with/IN
Jaguar/NNP
that/WDT
is/VBZ
likely/JJ
to/TO
involve/VB
an/DT
eventual/JJ
30/CD
%/NN
stake/NN
and/CC
joint/JJ
manufacturing/NN
ventures/NNS
./.
Speculative/JJ
investors/NNS
,/,
betting/VBG
on/IN
an/DT
imminent/JJ
clash/NN
between/IN
Ford/NNP
and/CC
GM/NNP
,/,
pushed/VBD
up/RP
Jaguar/NNP
's/POS
share/NN
price/NN
five/CD
pence/NN
eight/CD
U.S./NNP
cents/NNS
a/DT
near-record/JJ
720/CD
pence/NN
$/$
11.60/CD
London/NNP
's/POS
stock/NN
exchange/NN
yesterday/NN
./.
Since/IN
Tuesday/NNP
,/,
the/DT
shares/NNS
have/VBP
gained/VBN
nearly/RB
4/CD
%/NN
./.
But/CC
an/DT
all-out/JJ
bidding/NN
war/NN
between/IN
the/DT
world/NN
's/POS
top/JJ
auto/NN
giants/NNS
for/IN
Britain/NNP
's/POS
leading/VBG
luxury-car/NN
maker/NN
seems/VBZ
unlikely/JJ
./.
``/``
We/PRP
will/MD
not/RB
go/VB
over/IN
a/DT
certain/JJ
level/NN
,/,
''/''
said/VBD
David/NNP
N./NNP
McCammon/NNP
,/,
Ford/NNP
's/POS
vice/NN
president/NN
for/IN
finance/NN
,/,
at/IN
a/DT
news/NN
conference/NN
yesterday/NN
in/IN
Dearborn/NNP
,/,
Mich/NNP
./.
``/``
There/EX
's/VBZ
some/DT
price/NN
at/IN
which/WDT
we/PRP
'd/MD
stop/VB
bidding/NN
./.
''/''
He/PRP
would/MD
n't/RB
specify/VB
what/WP
it/PRP
was/VBD
./.
And/CC
powerful/JJ
political/JJ
pressures/NNS
may/MD
convince/VB
the/DT
Conservative/JJ
government/NN
to/TO
keep/VB
its/PRP$
so-called/JJ
golden/JJ
share/NN
,/,
which/WDT
limits/VBZ
any/DT
individual/JJ
holding/NN
to/TO
15/CD
%/NN
,/,
until/IN
the/DT
restriction/NN
expires/VBZ
on/IN
Dec./NNP
31/CD
,/,
1990/CD
./.
``/``
I/PRP
really/RB
do/VBP
n't/RB
see/VB
the/DT
government/NN
doing/VBG
something/NN
that/DT
Jaguar/NNP
does/VBZ
n't/RB
want/VB
over/IN
the/DT
next/JJ
14/CD
months/NNS
,/,
''/''
said/VBD
Kenneth/NNP
Warren/NNP
,/,
a/DT
Conservative/JJ
member/NN
of/IN
Parliament/NNP
and/CC
chairman/NN
of/IN
the/DT
Select/NNP
Committee/NNP
on/IN
Trade/NNP
and/CC
Industry/NNP
in/IN
Britain/NNP
's/POS
House/NNP
of/IN
Commons/NNPS
./.
``/``
The/DT
golden/JJ
share/NN
is/VBZ
a/DT
single/JJ
share/NN
,/,
but/CC
it/PRP
is/VBZ
the/DT
magic/JJ
share/NN
./.
''/''
The/DT
government/NN
retained/VBD
the/DT
single/JJ
share/NN
after/IN
selling/VBG
its/PRP$
stake/NN
in/IN
Jaguar/NNP
in/IN
1984/CD
--/:
part/NN
of/IN
a/DT
nationalistic/JJ
practice/NN
of/IN
protecting/VBG
former/JJ
government-owned/JJ
enterprises/NNS
to/TO
deflect/VB
criticism/NN
of/IN
privatization/NN
./.
The/DT
15/CD
%/NN
restriction/NN
covers/VBZ
any/DT
would-be/JJ
suitor/NN
,/,
British/JJ
or/CC
foreign/JJ
./.
Ford/NNP
is/VBZ
willing/JJ
to/TO
bid/VB
for/IN
100/CD
%/NN
of/IN
Jaguar/NNP
's/POS
shares/NNS
if/IN
both/DT
the/DT
government/NN
and/CC
Jaguar/NNP
shareholders/NNS
agree/VBP
to/TO
relax/VB
the/DT
anti-takeover/JJ
barrier/NN
prematurely/RB
./.
As/IN
Jaguar/NNP
's/POS
biggest/JJS
holder/NN
and/CC
Britain/NNP
's/POS
biggest/JJS
car/NN
maker/NN
,/,
Ford/NNP
could/MD
turn/VB
up/RP
the/DT
heat/NN
by/IN
convening/VBG
a/DT
special/JJ
shareholders/NNS
'/POS
meeting/NN
and/CC
urging/VBG
holders/NNS
to/TO
drop/VB
the/DT
limits/NNS
early/RB
./.
Ford/NNP
might/MD
succeed/VB
because/IN
many/JJ
shareholders/NNS
are/VBP
speculators/NNS
keen/JJ
for/IN
a/DT
full/JJ
bid/NN
or/CC
institutional/JJ
investors/NNS
unhappy/JJ
over/IN
Jaguar/NNP
management/NN
's/POS
handling/VBG
of/IN
its/PRP$
current/JJ
financial/JJ
difficulties/NNS
./.
The/DT
government/NN
probably/RB
would/MD
n't/RB
give/VB
in/RB
readily/RB
to/TO
a/DT
hostile/JJ
foray/NN
by/IN
Ford/NNP
,/,
however/RB
./.
It/PRP
has/VBZ
relinquished/VBN
a/DT
golden/JJ
share/NN
only/RB
once/RB
before/RB
--/:
during/IN
British/NNP
Petroleum/NNP
Co./NNP
's/POS
#/#
2.5/CD
billion/CD
$/$
4/CD
billion/CD
takeover/NN
of/IN
Britoil/NNP
PLC/NNP
in/IN
1988/CD
./.
In/IN
wooing/VBG
British/JJ
lawmakers/NNS
,/,
GM/NNP
has/VBZ
pointed/VBN
out/RB
that/IN
its/PRP$
willingness/NN
to/TO
settle/VB
for/IN
a/DT
minority/NN
stake/NN
would/MD
keep/VB
Jaguar/NNP
British-owned/JJ
and/CC
independent/JJ
./.
This/DT
week/NN
,/,
the/DT
U.S./NNP
auto/NN
giant/NN
paid/VBD
for/IN
10/CD
House/NNP
of/IN
Commons/NNPS
members/NNS
and/CC
two/CD
House/NNP
of/IN
Lords/NNPS
members/NNS
to/TO
fly/VB
to/TO
Detroit/NNP
and/CC
tour/VB
its/PRP$
operations/NNS
there/RB
./.
While/IN
the/DT
visit/NN
was/VBD
unrelated/JJ
to/TO
Jaguar/NNP
,/,
GM/NNP
Chairman/NNP
Roger/NNP
Smith/NNP
answered/VBD
the/DT
legislators/NNS
'/POS
questions/NNS
about/IN
it/PRP
over/IN
lunch/NN
Tuesday/NNP
./.
He/PRP
said/VBD
Jaguar/NNP
``/``
should/MD
n't/RB
be/VB
smothered/VBN
by/IN
anyone/NN
else/JJ
,/,
''/''
recalled/VBD
one/CD
participant/NN
./.
Politics/NN
also/RB
influences/VBZ
the/DT
government/NN
's/POS
thinking/NN
on/IN
the/DT
anti-takeover/JJ
restriction/NN
./.
The/DT
Conservatives/NNPS
do/VBP
n't/RB
dare/VB
jeopardize/VB
marginal/JJ
Tory/NNP
seats/NNS
in/IN
Coventry/NNP
,/,
where/WRB
Jaguar/NNP
has/VBZ
headquarters/NN
,/,
nor/CC
can/MD
the/DT
government/NN
easily/RB
back/RB
down/RB
on/IN
promised/VBN
protection/NN
for/IN
a/DT
privatized/VBN
company/NN
while/IN
it/PRP
proceeds/VBZ
with/IN
controversial/JJ
plans/NNS
to/TO
privatize/VB
most/JJS
of/IN
Britain/NNP
's/POS
water/NN
and/CC
electricity/NN
industries/NNS
./.
Prime/NNP
Minister/NNP
Margaret/NNP
Thatcher/NNP
might/MD
,/,
however/RB
,/,
be/VB
receptive/JJ
to/TO
any/DT
request/NN
by/IN
Jaguar/NNP
Chairman/NNP
Sir/NNP
John/NNP
Egan/NNP
for/IN
the/DT
restriction/NN
's/POS
early/JJ
removal/NN
to/TO
let/VB
GM/NNP
amass/VB
more/JJR
than/IN
15/CD
%/NN
or/CC
mount/VB
a/DT
friendly/JJ
suitor/NN
bid/NN
against/IN
Ford/NNP
./.
In/IN
the/DT
end/NN
,/,
Sir/NNP
John/NNP
--/:
rather/RB
than/IN
the/DT
government/NN
or/CC
Jaguar/NNP
shareholders/NNS
--/:
may/MD
hold/VB
the/DT
key/NN
that/WDT
unlocks/VBZ
the/DT
golden/JJ
share/NN
./.
Swedish/JJ
rolling-steel/NN
and/CC
ball-bearing/NN
group/NN
AB/NNP
SKF/NNP
said/VBD
its/PRP$
pretax/JJ
profit/NN
rose/VBD
78/CD
%/NN
to/TO
1.78/CD
billion/CD
kronor/NNS
$/$
278/CD
million/CD
the/DT
first/JJ
nine/CD
months/NNS
from/IN
one/CD
billion/CD
kronor/NNS
$/$
156/CD
million/CD
the/DT
corresponding/JJ
period/NN
a/DT
year/NN
earlier/RB
./.
SKF/NNP
said/VBD
sales/NNS
increased/VBD
17/CD
%/NN
to/TO
18.46/CD
billion/CD
kronor/NNS
from/IN
15.72/CD
billion/CD
./.
Earnings/NNS
per/IN
share/NN
were/VBD
10.35/CD
kronor/NNS
compared/VBN
with/IN
5.80/CD
kronor/NNS
./.
SKF/NNP
said/VBD
demand/NN
for/IN
the/DT
group/NN
's/POS
main/JJ
product/NN
,/,
rolling/JJ
bearings/NNS
,/,
remained/VBD
favorable/JJ
in/IN
Europe/NNP
,/,
which/WDT
accounts/VBZ
for/IN
slightly/RB
more/JJR
than/IN
two-thirds/NNS
of/IN
group/NN
sales/NNS
./.
Latin/JJ
American/JJ
markets/NNS
continued/VBD
their/PRP$
recovery/NN
after/IN
a/DT
weak/JJ
start/NN
to/TO
the/DT
year/NN
,/,
SKF/NNP
said/VBD
./.
The/DT
company/NN
said/VBD
the/DT
situation/NN
in/IN
the/DT
U.S./NNP
is/VBZ
still/RB
uncertain/JJ
as/IN
reduced/JJ
production/NN
in/IN
the/DT
country/NN
's/POS
automotive/JJ
industry/NN
has/VBZ
resulted/VBN
in/IN
weakened/JJ
demand/NN
for/IN
rolling/JJ
bearings/NNS
./.
Analysts/NNS
said/VBD
SKF/NNP
's/POS
results/NNS
for/IN
the/DT
first/JJ
nine/CD
months/NNS
lived/VBD
up/RB
to/TO
market/NN
expectations/NNS
as/IN
brokerage/NN
firms/NNS
had/VBD
predicted/VBN
a/DT
pretax/JJ
profit/NN
of/IN
1.74/CD
billion/CD
to/TO
1.86/CD
billion/CD
kronor/NNS
./.
The/DT
three/CD
business/NN
areas/NNS
engaged/VBN
in/IN
rolling/JJ
bearing/NN
operations/NNS
continued/VBD
to/TO
show/VB
favorable/JJ
sales/NNS
development/NN
./.
Sales/NNS
of/IN
rolling/JJ
bearings/NNS
increased/VBD
19/CD
%/NN
to/TO
15.7/CD
billion/CD
kronor/NNS
from/IN
13.2/CD
billion/CD
kronor/NNS
in/IN
the/DT
corresponding/JJ
period/NN
the/DT
previous/JJ
year/NN
./.
We/PRP
read/VBP
with/IN
interest/NN
Robert/NNP
Tomsho/NNP
's/POS
Sept./NNP
28/CD
page-one/NN
article/NN
on/IN
Robert/NNP
Redford/NNP
``/``
The/DT
Sundance/NNP
Kid/NNP
Gets/VBZ
Little/JJ
Respect/NN
Around/IN
Sundance/NNP
''/''
)/)
./.
Misunderstanding/VBG
conversations/NNS
with/IN
us/PRP
,/,
Mr./NNP
Tomsho/NNP
argued/VBD
that/IN
Mr./NNP
Redford/NNP
's/POS
environmental/JJ
views/NNS
are/VBP
at/IN
odds/NNS
with/IN
Utah/NNP
residents/NNS
./.
This/DT
may/MD
have/VB
been/VBN
true/JJ
10/CD
years/NNS
ago/RB
,/,
but/CC
times/NNS
have/VBP
changed/VBN
,/,
even/RB
in/IN
Utah/NNP
./.
Mr./NNP
Redford/NNP
no/RB
longer/RB
stands/VBZ
out/RB
as/IN
an/DT
extremist/NN
./.
He/PRP
has/VBZ
not/RB
changed/VBN
,/,
but/CC
those/DT
around/IN
him/PRP
have/VBP
./.
Many/JJ
of/IN
his/PRP$
views/NNS
on/IN
the/DT
protection/NN
of/IN
wilderness/NN
areas/NNS
,/,
rivers/NNS
and/CC
canyons/NNS
are/VBP
now/RB
embraced/VBN
by/IN
mainstream/JJ
,/,
conservative/JJ
Utahans/NNPS
./.
Recently/RB
,/,
some/DT
60/CD
environmental/JJ
and/CC
outdoor/JJ
groups/NNS
representing/VBG
such/JJ
divergent/JJ
points/NNS
of/IN
view/NN
as/IN
the/DT
Sierra/NNP
Club/NNP
,/,
the/DT
League/NNP
of/IN
Women/NNP
Voters/NNPS
and/CC
the/DT
National/NNP
Rifle/NNP
Association/NNP
joined/VBD
together/RB
to/TO
request/VB
a/DT
reassessment/NN
of/IN
the/DT
environmentally/RB
unsound/JJ
Central/NNP
Utah/NNP
Project/NNP
./.
While/IN
Utah/NNP
is/VBZ
not/RB
yet/RB
a/DT
haven/NN
for/IN
environmentalism/NN
,/,
public/JJ
views/NNS
toward/IN
the/DT
environment/NN
have/VBP
significantly/RB
improved/VBN
./.
In/IN
one/CD
of/IN
the/DT
most/RBS
conservative/JJ
,/,
Republican/JJ
states/NNS
in/IN
the/DT
entire/JJ
nation/NN
,/,
the/DT
greening/NN
of/IN
Robert/NNP
Redford/NNP
's/POS
neighbors/NNS
is/VBZ
the/DT
real/JJ
story/NN
that/IN
Mr./NNP
Tomsho/NNP
missed/VBD
./.
Sammye/NNP
Meadows/NNP
Sam/NNP
Rushforth/NNP
Gary/NNP
Bryner/NNP
Heber/NNP
City/NNP
,/,
Utah/NNP
If/IN
Mr./NNP
Redford/NNP
wanted/VBD
to/TO
be/VB
accepted/VBN
by/IN
the/DT
people/NNS
of/IN
Utah/NNP
,/,
he/PRP
should/MD
have/VB
taken/VBN
an/DT
advisory/JJ
role/NN
instead/RB
of/IN
one/CD
of/IN
forcing/VBG
his/PRP$
personal/JJ
preferences/NNS
./.
Furthermore/RB
,/,
his/PRP$
actions/NNS
imply/VBP
that/IN
it/PRP
is/VBZ
too/RB
damaging/JJ
or/CC
costly/JJ
for/IN
society/NN
to/TO
provide/VB
jobs/NNS
through/IN
power-plant/NN
construction/NN
,/,
coal/NN
mining/NN
or/CC
to/TO
build/VB
roads/NNS
for/IN
public/JJ
safety/NN
because/IN
of/IN
the/DT
adverse/JJ
impact/NN
on/IN
the/DT
environment/NN
,/,
but/CC
it/PRP
is/VBZ
just/RB
fine/JJ
and/CC
dandy/JJ
for/IN
him/PRP
to/TO
transform/VB
a/DT
mountain/NN
high/RB
in/IN
the/DT
Wasatch/NNP
Range/NNP
into/IN
a/DT
ski/JJ
resort/NN
./.
It/PRP
astounds/VBZ
me/PRP
he/PRP
can/MD
rationalize/VB
his/PRP$
self-righteous/JJ
and/CC
greedy/JJ
actions/NNS
in/IN
Utah/NNP
./.
An/DT
excellent/JJ
environmental/JJ
actor/NN
he/PRP
is/VBZ
./.
David/NNP
Vranian/NNP
M.B.A./NNP
Student/NNP
University/NNP
of/IN
Colorado/NNP
Boulder/NNP
,/,
Colo/NNP
./.
Mr./NNP
Redford/NNP
,/,
like/VB
it/PRP
or/CC
not/RB
,/,
is/VBZ
like/IN
a/DT
braking/VBG
system/NN
on/IN
a/DT
runaway/JJ
truck/NN
,/,
kind/RB
of/IN
slowing/VBG
it/PRP
down/RP
into/IN
control/NN
./.
He/PRP
's/VBZ
rich/JJ
,/,
famous/JJ
and/CC
intelligent/JJ
,/,
and/CC
has/VBZ
the/DT
time/NN
to/TO
do/VB
something/NN
that/IN
not/RB
even/RB
the/DT
federal/JJ
government/NN
will/MD
do/VB
./.
Mr./NNP
Redford/NNP
is/VBZ
slowing/VBG
down/RP
a/DT
mindless/JJ
,/,
speeding/JJ
maniac/NN
known/VBN
as/IN
the/DT
progress/NN
of/IN
mankind/NN
./.
Personally/RB
,/,
I/PRP
'm/VBP
glad/JJ
there/EX
are/VBP
people/NNS
like/IN
him/PRP
around/RB
to/TO
slow/VB
down/RP
the/DT
profit/NN
takers/NNS
,/,
and/CC
those/DT
who/WP
are/VBP
in/IN
such/JJ
a/DT
blind/JJ
hurry/NN
for/IN
something/NN
that/WDT
may/MD
appear/VB
to/TO
benefit/VB
them/PRP
in/IN
the/DT
immediate/JJ
future/NN
,/,
not/RB
caring/VBG
about/IN
the/DT
long-range/JJ
implications/NNS
./.
Ron/NNP
Dyer/NNP
Atlanta/NNP
When/WRB
President/NNP
Bush/NNP
travels/VBZ
to/TO
Costa/NNP
Rica/NNP
today/NN
,/,
he/PRP
'll/MD
go/VB
with/IN
little/RB
of/IN
the/DT
fanfare/NN
that/WDT
accompanies/VBZ
many/JJ
of/IN
his/PRP$
foreign/JJ
travels/NNS
./.
But/CC
the/DT
two-day/JJ
trip/NN
still/RB
has/VBZ
managed/VBN
to/TO
fuel/VB
controversy/NN
over/IN
his/PRP$
administration/NN
's/POS
policies/NNS
in/IN
Central/NNP
America/NNP
./.
Some/DT
conservatives/NNS
say/VBP
Mr./NNP
Bush/NNP
should/MD
n't/RB
make/VB
the/DT
trip/NN
,/,
during/IN
which/WDT
he/PRP
will/MD
participate/VB
in/IN
Costa/NNP
Rica/NNP
's/POS
celebration/NN
of/IN
100/CD
years/NNS
of/IN
democracy/NN
./.
These/DT
critics/NNS
object/VBP
to/TO
Mr./NNP
Bush/NNP
's/POS
participation/NN
in/IN
a/DT
meeting/NN
that/WDT
includes/VBZ
Nicaraguan/JJ
President/NNP
Daniel/NNP
Ortega/NNP
among/IN
the/DT
guests/NNS
./.
In/IN
addition/NN
,/,
they/PRP
argue/VBP
he/PRP
wo/MD
n't/RB
help/VB
Washington/NNP
's/POS
standing/NN
in/IN
the/DT
region/NN
by/IN
trumpeting/VBG
the/DT
U.S./NNP
commitment/NN
to/TO
democracy/NN
less/JJR
than/IN
a/DT
month/NN
after/IN
his/PRP$
administration/NN
played/VBD
an/DT
ineffectual/JJ
role/NN
in/IN
the/DT
failed/VBN
coup/NN
attempt/NN
in/IN
Panama/NNP
./.
``/``
I/PRP
believe/VBP
it/PRP
will/MD
do/VB
more/JJR
damage/NN
than/IN
good/JJ
because/IN
it/PRP
will/MD
legitimize/VB
people/NNS
like/IN
Daniel/NNP
Ortega/NNP
,/,
''/''
says/VBZ
Curtin/NNP
Windsor/NNP
,/,
who/WP
served/VBD
as/IN
U.S./NNP
ambassador/NN
to/TO
Costa/NNP
Rica/NNP
during/IN
the/DT
Reagan/NNP
administration/NN
./.
Mr./NNP
Windsor/NNP
,/,
among/IN
other/JJ
analysts/NNS
connected/VBN
to/TO
the/DT
conservative/JJ
Heritage/NNP
Foundation/NNP
,/,
fears/VBZ
the/DT
gathering/NN
of/IN
18/CD
leaders/NNS
,/,
mostly/RB
from/IN
Central/JJ
American/JJ
nations/NNS
,/,
will/MD
force/VB
Mr./NNP
Bush/NNP
``/``
to/TO
explain/VB
and/CC
redeem/VB
himself/PRP
''/''
in/IN
the/DT
wake/NN
of/IN
charges/NNS
that/IN
the/DT
U.S./NNP
failed/VBD
to/TO
do/VB
enough/RB
to/TO
aid/VB
the/DT
removal/NN
of/IN
Panamanian/JJ
dictator/NN
Manuel/NNP
Noriega/NNP
./.
At/IN
the/DT
same/JJ
time/NN
,/,
liberal/JJ
and/CC
moderate/JJ
Democrats/NNPS
note/VBP
the/DT
irony/NN
of/IN
Mr./NNP
Bush/NNP
's/POS
joining/VBG
a/DT
celebration/NN
of/IN
Costa/JJ
Rican/JJ
democracy/NN
at/IN
a/DT
time/NN
his/PRP$
administration/NN
has/VBZ
sought/VBN
sharp/JJ
cuts/NNS
in/IN
U.S./NNP
aid/NN
to/TO
the/DT
tiny/JJ
country/NN
./.
The/DT
administration/NN
proposed/VBD
only/RB
$/$
57/CD
million/CD
in/IN
so-called/JJ
economic/JJ
support/NN
funds/NNS
for/IN
Costa/NNP
Rica/NNP
this/DT
year/NN
,/,
down/RB
from/IN
the/DT
$/$
90/CD
million/CD
the/DT
U.S./NNP
provided/VBD
last/JJ
year/NN
./.
The/DT
administration/NN
said/VBD
improvements/NNS
in/IN
Costa/NNP
Rica/NNP
's/POS
economic/JJ
condition/NN
warrant/VBP
the/DT
cut/NN
in/IN
aid/NN
,/,
which/WDT
the/DT
country/NN
uses/VBZ
mainly/RB
to/TO
make/VB
payments/NNS
on/IN
its/PRP$
$/$
4.5/CD
billion/CD
foreign/JJ
debt/NN
./.
But/CC
Costa/JJ
Rican/JJ
officials/NNS
argue/VBP
that/IN
the/DT
recent/JJ
drop/NN
in/IN
coffee/NN
prices/NNS
,/,
combined/VBN
with/IN
the/DT
country/NN
's/POS
continuing/VBG
struggle/NN
to/TO
reinvigorate/VB
its/PRP$
economy/NN
,/,
make/VBP
the/DT
support/NN
as/RB
necessary/JJ
as/IN
ever/RB
./.
``/``
We/PRP
are/VBP
crossing/VBG
the/DT
river/NN
and/CC
we/PRP
need/VBP
a/DT
little/RB
more/JJR
help/NN
to/TO
get/VB
to/TO
the/DT
other/JJ
side/NN
,/,
''/''
said/VBD
Rodrigo/NNP
Sotela/NNP
,/,
an/DT
economic/JJ
affairs/NNS
specialist/NN
at/IN
the/DT
Costa/JJ
Rican/JJ
Embassy/NNP
in/IN
Washington/NNP
./.
Democrats/NNP
argue/VBP
that/IN
Costa/NNP
Rica/NNP
deserves/VBZ
more/JJR
assistance/NN
for/IN
the/DT
same/JJ
reason/NN
that/IN
Mr./NNP
Bush/NNP
is/VBZ
attending/VBG
the/DT
celebration/NN
this/DT
weekend/NN
:/:
to/TO
reward/VB
the/DT
country/NN
for/IN
its/PRP$
stability/NN
in/IN
a/DT
region/NN
wracked/VBN
with/IN
turmoil/NN
and/CC
for/IN
its/PRP$
efforts/NNS
to/TO
promote/VB
peace/NN
in/IN
Nicaragua/NNP
./.
However/RB
,/,
peace/NN
efforts/NNS
by/IN
Costa/JJ
Rican/JJ
President/NNP
Oscar/NNP
Arias/NNP
have/VBP
n't/RB
always/RB
helped/VBN
the/DT
country/NN
's/POS
cause/NN
in/IN
Washington/NNP
./.
Mr./NNP
Arias/NNP
's/POS
long-time/JJ
refusal/NN
to/TO
support/VB
the/DT
U.S./NNP
's/POS
campaign/NN
against/IN
leftist/JJ
Nicaragua/NNP
earned/VBD
him/PRP
the/DT
ire/NN
of/IN
the/DT
Reagan/NNP
White/NNP
House/NNP
./.
And/CC
more/RBR
recently/RB
,/,
he/PRP
insisted/VBD
on/IN
signing/VBG
a/DT
five-nation/JJ
agreement/NN
intended/VBN
to/TO
disarm/VB
Nicaragua/NNP
's/POS
U.S.-backed/JJ
Contra/JJ
rebels/NNS
faster/RBR
than/IN
the/DT
Bush/NNP
administration/NN
would/MD
prefer/VB
./.
``/``
I/PRP
think/VBP
Bush/NNP
's/POS
going/VBG
there/RB
is/VBZ
a/DT
helpful/JJ
sign/NN
,/,
''/''
said/VBD
Sen./NNP
Terry/NNP
Sanford/NNP
D./NNP
,/,
N.C/NNP
./.
a/DT
member/NN
of/IN
the/DT
Foreign/NNP
Relations/NNPS
Committee/NNP
who/WP
pushed/VBD
to/TO
provide/VB
Costa/NNP
Rica/NNP
about/IN
the/DT
same/JJ
amount/NN
of/IN
aid/NN
as/IN
it/PRP
received/VBD
last/JJ
year/NN
./.
Lawmakers/NNS
in/IN
both/DT
houses/NNS
support/VBP
the/DT
higher/JJR
level/NN
./.
Administration/NN
officials/NNS
defend/VBP
Mr./NNP
Bush/NNP
's/POS
decision/NN
to/TO
make/VB
the/DT
trip/NN
./.
While/IN
they/PRP
acknowledge/VBP
the/DT
president/NN
will/MD
attend/VB
several/JJ
meals/NNS
and/CC
a/DT
working/NN
session/NN
also/RB
attended/VBD
by/IN
Mr./NNP
Ortega/NNP
,/,
they/PRP
insist/VBP
that/IN
Mr./NNP
Bush/NNP
wo/MD
n't/RB
be/VB
extending/VBG
the/DT
Nicaraguan/JJ
leader/NN
any/DT
special/JJ
courtesies/NNS
./.
The/DT
administration/NN
also/RB
made/VBD
clear/JJ
its/PRP$
continuing/VBG
distate/NN
for/IN
the/DT
leftist/JJ
Nicaraguan/JJ
government/NN
in/IN
recent/JJ
days/NNS
,/,
endorsing/VBG
a/DT
package/NN
of/IN
electoral/JJ
aid/NN
to/TO
the/DT
Nicaraguan/JJ
opposition/NN
,/,
renewing/VBG
the/DT
U.S./NNP
trade/NN
embargo/NN
against/IN
the/DT
country/NN
and/CC
continuing/VBG
to/TO
complain/VB
that/IN
the/DT
country/NN
supports/VBZ
rebel/NN
groups/NNS
in/IN
the/DT
region/NN
./.
Officials/NNS
also/RB
insist/VBP
Mr./NNP
Bush/NNP
will/MD
use/VB
the/DT
trip/NN
to/TO
highlight/VB
his/PRP$
own/JJ
initiatives/NNS
for/IN
pushing/VBG
democracy/NN
in/IN
the/DT
region/NN
,/,
fighting/VBG
illegal/JJ
drugs/NNS
and/CC
assisting/VBG
the/DT
less/RBR
developed/JJ
countries/NNS
./.
``/``
Let/VB
me/PRP
say/VB
there/EX
is/VBZ
a/DT
symbolic/JJ
component/NN
to/TO
this/DT
trip/NN
,/,
''/''
Secretary/NNP
of/IN
State/NNP
James/NNP
Baker/NNP
told/VBD
reporters/NNS
Wednesday/NNP
./.
``/``
There/EX
wo/MD
n't/RB
be/VB
any/DT
formal/JJ
resolutions/NNS
or/CC
communiques/NNS
,/,
I/PRP
do/VBP
n't/RB
think/VB
./.
But/CC
we/PRP
still/RB
see/VB
this/DT
as/IN
an/DT
opportunity/NN
to/TO
discuss/VB
many/JJ
,/,
many/JJ
very/RB
important/JJ
issues/NNS
./.
''/''
In/IN
1987/CD
,/,
the/DT
Presidents/NNPS
Commission/NNP
of/IN
the/DT
NCAA/NNP
,/,
which/WDT
oversees/VBZ
most/JJS
U.S./NNP
intercollegiate/JJ
sports/NNS
,/,
contracted/VBD
with/IN
the/DT
Washington-based/JJ
American/NNP
Institutes/NNPS
for/IN
Research/NNP
to/TO
do/VB
a/DT
survey/NN
on/IN
the/DT
college/NN
experiences/NNS
of/IN
what/WP
the/DT
body/NN
chooses/VBZ
to/TO
call/VB
student-athletes/NNS
./.
A/DT
brief/JJ
``/``
executive/NN
summary/NN
''/''
was/VBD
issued/VBN
last/JJ
April/NNP
,/,
and/CC
attracted/VBD
some/DT
,/,
but/CC
not/RB
much/RB
,/,
attention/NN
./.
More-detailed/JJR
reports/NNS
followed/VBD
,/,
and/CC
attracted/VBD
even/RB
less/JJR
notice/NN
./.
I/PRP
suspect/VBP
I/PRP
may/MD
be/VB
one/CD
of/IN
the/DT
few/JJ
people/NNS
to/TO
have/VB
read/VBN
them/PRP
all/DT
./.
The/DT
sixth/JJ
and/CC
last/JJ
report/NN
now/RB
is/VBZ
out/RP
,/,
and/CC
it/PRP
puts/VBZ
the/DT
effort/NN
in/IN
perspective/NN
./.
Titled/VBN
``/``
Comments/NNS
From/IN
Students/NNS
,/,
''/''
it/PRP
focuses/VBZ
on/IN
the/DT
real/JJ
shame/NN
of/IN
college/NN
sports/NNS
:/:
what/WP
happens/VBZ
to/TO
young/JJ
athletes/NNS
once/IN
they/PRP
enter/VBP
academe/NN
./.
It/PRP
's/VBZ
little/RB
less/JJR
than/IN
a/DT
cry/NN
for/IN
help/NN
from/IN
those/DT
who/WP
make/VBP
the/DT
costly/JJ
show/NN
possible/JJ
./.
The/DT
previous/JJ
five/CD
reports/NNS
were/VBD
mainly/RB
statistical/JJ
,/,
but/CC
clear/RB
enough/RB
in/IN
outline/NN
./.
They/PRP
showed/VBD
that/IN
participants/NNS
in/IN
Division/NN
I/CD
football/NN
and/CC
men/NNS
's/POS
basketball/NN
,/,
the/DT
big-time/JJ
``/``
revenue/NN
sports/NNS
,/,
''/''
entered/VBD
school/NN
with/IN
poorer/JJR
high-school/JJ
grades/NNS
and/CC
test/NN
scores/NNS
than/IN
``/``
minor-sport/NN
''/''
jocks/NNS
and/CC
students/NNS
who/WP
participated/VBD
in/IN
other/JJ
extracurricular/JJ
activities/NNS
,/,
and/CC
they/PRP
got/VBD
lower/JJR
grades/NNS
once/IN
they/PRP
got/VBD
there/RB
,/,
at/IN
least/JJS
partly/RB
because/IN
of/IN
the/DT
athletic/JJ
demands/NNS
placed/VBN
on/IN
them/PRP
./.
The/DT
football/NN
and/CC
basketball/NN
players/NNS
spent/VBD
more/JJR
time/NN
on/IN
their/PRP$
sports/NNS
in/IN
season/NN
than/IN
they/PRP
did/VBD
on/IN
class/NN
attendance/NN
and/CC
homework/NN
combined/VBN
(/(
30/CD
hours/NNS
a/DT
week/NN
versus/IN
25.3/CD
Almost/RB
half/NN
49.8/CD
%/NN
mental/JJ
abuse/NN
''/''
from/IN
coaches/NNS
,/,
and/CC
almost/RB
one-quarter/NN
(/(
24.8/CD
%/NN
they/PRP
had/VBD
been/VBN
pressured/VBN
to/TO
ignore/VB
injuries/NNS
./.
But/CC
even/RB
those/DT
numbers/NNS
do/VBP
n't/RB
describe/VB
the/DT
situation/NN
as/RB
well/RB
as/IN
the/DT
athletes/NNS
do/VBP
in/IN
their/PRP$
own/JJ
words/NNS
./.
The/DT
composite/JJ
portrait/NN
that/WDT
emerges/VBZ
is/VBZ
n't/RB
of/IN
a/DT
pampered/JJ
jock/NN
marking/VBG
time/NN
until/IN
he/PRP
can/MD
land/VB
a/DT
seven-figure/JJ
pro/JJ
contract/NN
--/:
he/PRP
's/VBZ
part/NN
of/IN
a/DT
tiny/JJ
minority/NN
./.
Rather/RB
,/,
it/PRP
's/VBZ
of/IN
a/DT
kid/NN
we/PRP
're/VBP
talking/VBG
about/IN
17/CD
to/TO
22/CD
year/NN
olds/NNS
here/RB
)/)
having/VBG
a/DT
tough/JJ
time/NN
making/VBG
the/DT
best/JJS
of/IN
what/WP
will/MD
probably/RB
be/VB
his/PRP$
one/CD
shot/NN
at/IN
college/NN
./.
The/DT
pertinent/JJ
question/NN
,/,
coming/VBG
at/IN
the/DT
end/NN
of/IN
a/DT
lengthy/JJ
,/,
confidential/JJ
questionnaire/NN
,/,
was/VBD
this/DT
:/:
``/``
Are/VBP
there/RB
things/NNS
about/IN
your/PRP$
college/NN
life/NN
you/PRP
would/MD
like/VB
to/TO
tell/VB
us/PRP
that/IN
we/PRP
did/VBD
n't/RB
ask/VB
about/IN
?/.
''/''
Of/IN
the/DT
almost/RB
3,000/CD
athletes/NNS
surveyed/VBN
,/,
1,240/CD
took/VBD
the/DT
time/NN
to/TO
respond/VB
./.
Here/RB
are/VBP
a/DT
few/JJ
of/IN
their/PRP$
answers/NNS
:/:
--/:
``/``
They/PRP
say/VBP
that/IN
I/PRP
am/VBP
a/DT
student-athlete/NN
,/,
but/CC
really/RB
I/PRP
'm/VBP
an/DT
athlete-student/NN
./.
They/PRP
lied/VBD
to/TO
me/PRP
on/IN
the/DT
recruiting/NN
trip/NN
./.
Football/NN
is/VBZ
the/DT
No./NN
1/CD
thing/NN
here/RB
''/''
./.
--/:
Junior/NN
football/NN
player/NN
./.
--/:
``/``
Being/VBG
a/DT
student-athlete/NN
at/IN
college/NN
is/VBZ
a/DT
lot/RB
different/JJ
from/IN
high/JJ
school/NN
./.
First/RB
,/,
the/DT
sport/NN
you/PRP
play/VBP
is/VBZ
no/RB
longer/RB
a/DT
game/NN
--/:
it/PRP
becomes/VBZ
a/DT
job/NN
./.
Your/PRP$
coaches/NNS
demand/VBP
a/DT
lot/NN
more/JJR
out/IN
of/IN
you/PRP
even/RB
though/IN
some/DT
of/IN
them/PRP
are/VBP
not/RB
willing/JJ
to/TO
take/VB
the/DT
time/NN
to/TO
watch/VB
you/PRP
progress/VB
./.
You/PRP
become/VBP
expendable/JJ
./.
Your/PRP$
interest/NN
is/VBZ
not/RB
taken/VBN
to/TO
heart/NN
because/IN
people/NNS
only/RB
care/VB
about/IN
your/PRP$
performance/NN
''/''
./.
--/:
Freshman/NN
basketball/NN
player/NN
./.
--/:
``/``
The/DT
coaches/NNS
should/MD
have/VB
a/DT
more/RBR
personal/JJ
and/CC
sympathetic/JJ
attitude/NN
toward/IN
the/DT
athletes/NNS
--/:
not/RB
treat/VB
us/PRP
like/IN
pieces/NNS
of/IN
meat/NN
./.
They/PRP
always/RB
say/VBP
to/TO
get/VB
a/DT
degree/NN
first/RB
,/,
but/CC
they/PRP
do/VBP
n't/RB
allow/VB
us/PRP
time/NN
or/CC
to/TO
skip/VB
practice/NN
to/TO
study/VB
for/IN
a/DT
test/NN
./.
They/PRP
just/RB
want/VBP
to/TO
get/VB
their/PRP$
job/NN
done/VBN
at/IN
any/DT
cost/NN
to/TO
the/DT
athlete/NN
''/''
./.
--/:
Freshman/NN
football/NN
player/NN
./.
--/:
``/``
The/DT
pressure/NN
put/VBN
on/IN
us/PRP
to/TO
win/VB
at/IN
all/DT
times/NNS
has/VBZ
resulted/VBN
in/IN
physical/JJ
violence/NN
,/,
such/JJ
as/IN
punching/NN
and/CC
slapping/NN
by/IN
coaches/NNS
./.
Some/DT
days/NNS
the/DT
coaches/NNS
make/VBP
you/PRP
feel/VB
as/IN
though/IN
you/PRP
are/VBP
part/NN
of/IN
a/DT
large/JJ
herd/NN
of/IN
animals/NNS
./.
In/IN
other/JJ
words/NNS
,/,
they/PRP
treat/VBP
you/PRP
like/IN
a/DT
piece/NN
of/IN
meat/NN
''/''
./.
--/:
Sophomore/NN
football/NN
player/NN
./.
--/:
``/``
Playing/VBG
intercollegiate/JJ
sports/NNS
does/VBZ
n't/RB
give/VB
you/PRP
a/DT
lot/NN
of/IN
time/NN
to/TO
spend/VB
with/IN
others/NNS
./.
We/PRP
are/VBP
almost/RB
left/VBN
out/RB
of/IN
{/(
campus/NN
social/JJ
activities/NNS
./.
This/DT
mostly/RB
happens/VBZ
because/IN
we/PRP
go/VBP
from/IN
football/NN
in/IN
the/DT
fall/NN
to/TO
lifting/NN
in/IN
the/DT
winter/NN
to/TO
football/NN
again/RB
in/IN
the/DT
spring/NN
''/''
./.
--/:
Freshman/NN
football/NN
player/NN
./.
--/:
``/``
You/PRP
talk/VBP
about/IN
free/JJ
time/NN
--/:
.what/WDT
free/JJ
time/NN
?/.
Time/NN
to/TO
relax/VB
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enjoy/VB
ourselves/PRP
is/VBZ
always/RB
taken/VBN
up/RB
by/IN
something/NN
to/TO
do/VB
with/IN
football/NN
meetings/NNS
,/,
lifting/VBG
weights/NNS
,/,
conditioning/NN
or/CC
films/NNS
There/EX
is/VBZ
no/DT
recovery/NN
period/NN
--/:
it/PRP
's/VBZ
go/VB
,/,
go/VB
,/,
go/VB
./.
ABUSE/NN
to/TO
our/PRP$
bodies/NNS
is/VBZ
overwhelming/JJ
./.
With/IN
our/PRP$
schedule/NN
,/,
it/PRP
's/VBZ
hard/JJ
to/TO
sleep/VB
well/RB
knowing/VBG
what/WP
is/VBZ
going/VBG
to/TO
happen/VB
the/DT
next/JJ
day/NN
''/''
./.
--/:
Junior/NN
football/NN
player/NN
./.
--/:
``/``
Physical/JJ
exhaustion/NN
and/CC
depression/NN
are/VBP
common/JJ
in/IN
my/PRP$
life/NN
and/CC
in/IN
some/DT
of/IN
my/PRP$
teammates/NNS
'/POS
lives/NNS
''/''
./.
--/:
Football/NN
player/NN
,/,
class/NN
unspecified/JJ
./.
--/:
``/``
More/RBR
often/RB
than/IN
not/RB
,/,
college/NN
athletes/NNS
go/VBP
through/IN
college/NN
never/RB
really/RB
experiencing/VBG
collegiate/JJ
life/NN
to/TO
the/DT
fullest/JJS
./.
One/PRP
has/VBZ
to/TO
establish/VB
one/PRP
's/POS
own/JJ
identity/NN
away/RB
from/IN
athletics/NNS
and/CC
make/VB
athletics/NNS
only/RB
a/DT
part/NN
,/,
not/RB
a/DT
whole/JJ
,/,
of/IN
the/DT
student-athlete/NN
's/POS
life/NN
''/''
./.
--/:
Sophomore/NN
basketball/NN
player/NN
./.
--/:
``/``
Somehow/RB
,/,
and/CC
I/PRP
do/VBP
n't/RB
know/VB
how/WRB
,/,
the/DT
game/NN
needs/VBZ
to/TO
be/VB
played/VBN
for/IN
fun/NN
again/RB
,/,
and/CC
not/RB
for/IN
the/DT
big/JJ
bowl/NN
revenues/NNS
or/CC
lucrative/JJ
TV/NN
contracts/NNS
''/''
./.
--/:
Graduate-student/NN
football/NN
player/NN
./.
There/EX
have/VBP
been/VBN
rumblings/NNS
that/IN
,/,
at/IN
long/RB
last/RB
,/,
changes/NNS
may/MD
be/VB
in/IN
the/DT
works/NNS
./.
The/DT
Knight/NNP
Foundation/NNP
,/,
of/IN
Akron/NNP
,/,
Ohio/NNP
,/,
has/VBZ
established/VBN
a/DT
national/JJ
commission/NN
to/TO
look/VB
into/IN
college-sports/NNS
reform/NN
,/,
and/CC
the/DT
NCAA/NNP
Presidents/NNPS
Commission/NNP
earlier/RB
this/DT
month/NN
recommended/VBD
cutting/VBG
spring/NN
football/NN
practice/NN
in/IN
half/NN
,/,
moving/VBG
the/DT
start/NN
of/IN
basketball/NN
practice/NN
back/RB
by/IN
a/DT
month/NN
and/CC
reducing/VBG
maximum/JJ
schedules/NNS
in/IN
that/DT
sport/NN
to/TO
25/CD
games/NNS
from/IN
28/CD
./.
The/DT
key/JJ
word/NN
in/IN
that/DT
paragraph/NN
,/,
though/RB
,/,
is/VBZ
``/``
may/MD
./.
''/''
NCAA/NNP
Executive/NNP
Director/NNP
Richard/NNP
Schultz/NNP
,/,
in/IN
accepting/VBG
a/DT
place/NN
on/IN
the/DT
Knight/NNP
Commission/NNP
,/,
urged/VBD
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the/DT
panel/NN
take/VB
a/DT
``/``
balanced/JJ
''/''
view/NN
,/,
which/WDT
looks/VBZ
for/IN
all/PDT
the/DT
world/NN
like/IN
a/DT
plea/NN
not/RB
to/TO
rock/VB
the/DT
boat/NN
too/RB
much/RB
,/,
and/CC
the/DT
presidents/NNS
'/POS
recommendations/NNS
could/MD
face/VB
considerable/JJ
opposition/NN
at/IN
the/DT
NCAA/NNP
's/POS
full/JJ
convention/NN
in/IN
January/NNP
,/,
which/WDT
will/MD
vote/VB
on/IN
them/PRP
./.
I/PRP
read/VBD|VBP
that/IN
one/CD
unnamed/JJ
athletics/NNS
director/NN
predicted/VBD
that/IN
the/DT
basketball-cutback/NN
proposal/NN
could/MD
fail/VB
because/IN
of/IN
``/``
real/JJ
world/NN
''/''
(/(
i.e./FW
,/,
economic/JJ
considerations/NNS
./.
But/CC
the/DT
``/``
real/JJ
world/NN
''/''
also/RB
includes/VBZ
the/DT
unpleasant/JJ
truth/NN
that/IN
colleges/NNS
are/VBP
cheating/VBG
the/DT
athletes/NNS
they/PRP
have/VBP
wooed/VBN
and/CC
won/VBN
./.
If/IN
they/PRP
wo/MD
n't/RB
change/VB
their/PRP$
ways/NNS
voluntarily/RB
,/,
maybe/RB
somebody/NN
bigger/JJR
--/:
Congress/NNP
--/:
should/MD
make/VB
them/PRP
./.
They/PRP
want/VBP
late-night/JJ
shuttles/NNS
to/TO
the/DT
biology/NN
labs/NNS
./.
They/PRP
want/VBP
a/DT
24-hour/JJ
library/NN
./.
And/CC
like/IN
college/NN
radicals/NNS
everywhere/RB
,/,
they/PRP
are/VBP
talking/VBG
about/IN
a/DT
demonstration/NN
--/:
where/WRB
protesters/NNS
would/MD
gather/VB
quietly/RB
near/IN
the/DT
science/NN
building/NN
and/CC
raise/VB
their/PRP$
hands/NNS
,/,
classroom/NN
style/NN
./.
Such/JJ
is/VBZ
the/DT
fiber/NN
of/IN
the/DT
wool/NN
that/IN
woolly/JJ
intellectuals/NNS
let/VBP
fly/VB
at/IN
gatherings/NNS
of/IN
Harvard/NNP
University/NNP
's/POS
new/JJ
Society/NNP
of/IN
Nerds/NNPS
and/CC
Geeks/NNPS
,/,
or/CC
SONG/NNP
./.
SONGsters/NNS
are/VBP
mad/JJ
as/IN
heck/NN
about/IN
campus/NN
anti-intellectualism/NN
and/CC
they/PRP
are/VBP
n't/RB
going/VBG
to/TO
take/VB
it/PRP
anymore/RB
,/,
at/IN
least/JJS
not/RB
without/IN
trying/VBG
a/DT
few/JJ
really/RB
neat/JJ
ideas/NNS
first/RB
./.
``/``
We/PRP
could/MD
have/VB
called/VBN
ourselves/PRP
the/DT
Academic/NNP
Intellectual/NNP
Society/NNP
,/,
but/CC
then/RB
everyone/NN
would/MD
have/VB
said/VBD
,/,
`/``
Oh/UH
,/,
you/PRP
mean/VBP
the/DT
nerd-and-geek/JJ
club/NN
,/,
'/''
''/''
Leonid/NNP
Fridman/NNP
,/,
SONG/NNP
's/POS
graduate-student/NN
adviser/NN
,/,
told/VBD
19/CD
attendees/NNS
at/IN
the/DT
club/NN
's/POS
inaugural/JJ
meeting/NN
earlier/RBR
this/DT
month/NN
./.
Membership/NN
has/VBZ
since/IN
swelled/VBN
to/TO
between/IN
20/CD
and/CC
25/CD
./.
Some/DT
people/NNS
may/MD
think/VB
of/IN
nerds/NNS
as/IN
calculator-toting/JJ
,/,
socially/RB
awkward/JJ
individuals/NNS
with/IN
shirt-pocket/NN
liners/NNS
for/IN
their/PRP$
pencils/NNS
and/CC
a/DT
preoccupation/NN
with/IN
computers/NNS
and/CC
matters/NNS
numerical/JJ
./.
Geeks/NNS
,/,
by/IN
at/IN
least/JJS
one/CD
definition/NN
,/,
are/VBP
chicken-mutilating/JJ
circus/NN
freaks/NNS
./.
But/CC
SONG/NNP
founder/NN
Jeremy/NNP
Kahn/NNP
,/,
a/DT
Harvard/NNP
junior/NN
,/,
thinks/VBZ
of/IN
nerds/NNS
and/CC
geeks/NNS
more/JJR
as/IN
``/``
nonconformists/NNS
,/,
''/''
albeit/IN
with/IN
a/DT
studious/JJ
bent/NN
./.
One/CD
of/IN
the/DT
group/NN
's/POS
first/JJ
projects/NNS
is/VBZ
a/DT
``/``
procrastination/NN
hot/JJ
line/NN
''/''
that/IN
students/NNS
could/MD
call/VB
when/WRB
they/PRP
have/VBP
an/DT
urge/NN
to/TO
delay/VB
studying/VBG
./.
The/DT
club/NN
plans/VBZ
to/TO
show/VB
nerdy/JJ
movies/NNS
,/,
such/JJ
as/IN
``/``
Real/JJ
Genius/NN
,/,
''/''
in/IN
which/WDT
physics/NN
whizzes/NNS
pop/VBP
corn/NN
with/IN
lasers/NNS
;/:
and/CC
naturally/RB
,/,
the/DT
``/``
Revenge/NN
of/IN
the/DT
Nerds/NNS
,/,
''/''
a/DT
tale/NN
of/IN
college/NN
males/NNS
with/IN
runny/JJ
noses/NNS
and/CC
ill-fitting/JJ
pants/NNS
./.
One/CD
of/IN
its/PRP$
``/``
more/RBR
ambitious/JJ
goals/NNS
''/''
is/VBZ
to/TO
get/VB
Jaime/NNP
Escalante/NNP
,/,
the/DT
Los/NNP
Angeles/NNP
high-school/NN
mathematics/NNS
teacher/NN
featured/VBN
in/IN
the/DT
film/NN
``/``
Stand/VB
and/CC
Deliver/VB
,/,
''/''
to/TO
come/VB
to/TO
Harvard/NNP
for/IN
a/DT
guest/NN
lecture/NN
./.
Nerds/NNS
and/CC
geeks/NNS
sometimes/RB
find/VBP
themselves/PRP
a/DT
bit/RB
isolated/JJ
at/IN
Harvard/NNP
./.
So/RB
Mr./NNP
Kahn/NNP
says/VBZ
high/JJ
priority/NN
is/VBZ
being/VBG
given/VBN
to/TO
creating/VBG
a/DT
computerized/JJ
matchmaking/NN
service/NN
``/``
where/WRB
instead/RB
of/IN
being/VBG
matched/VBN
for/IN
eye/NN
color/NN
,/,
you/PRP
could/MD
be/VB
matched/VBN
for/IN
similar/JJ
intellectual/JJ
interests/NNS
./.
''/''
For/IN
instance/NN
?/.
``/``
I/PRP
'm/VBP
a/DT
math/NN
major/NN
,/,
but/CC
I/PRP
want/VBP
to/TO
know/VB
about/IN
psychobiology/NN
./.
Hopefully/NNP
,/,
I/PRP
'd/MD
find/VB
someone/NN
in/IN
psychobiology/NN
who/WP
wanted/VBD
to/TO
know/VB
more/JJR
about/IN
mathematics/NNS
./.
''/''
It/PRP
could/MD
work/VB
./.
Meanwhile/RB
,/,
finding/VBG
a/DT
volunteer/NN
to/TO
write/VB
the/DT
computer/NN
program/NN
is/VBZ
n't/RB
a/DT
problem/NN
./.
Dime/NNP
Savings/NNPS
Bank/NNP
of/IN
New/NNP
York/NNP
was/VBD
cleared/VBN
by/IN
the/DT
Federal/NNP
Deposit/NNP
Insurance/NNP
Corp./NNP
to/TO
acquire/VB
Starpointe/NNP
Savings/NNPS
Bank/NNP
of/IN
Somerset/NNP
,/,
N.J./NNP
,/,
the/DT
banks/NNS
said/VBD
./.
Starpointe/NNP
holders/NNS
,/,
who/WP
approved/VBD
the/DT
plan/NN
last/JJ
April/NNP
,/,
will/MD
receive/VB
$/$
21/CD
in/IN
cash/NN
a/DT
share/NN
,/,
or/CC
a/DT
total/JJ
$/$
63/CD
million/CD
./.
The/DT
FDIC/NNP
cleared/VBD
the/DT
move/NN
yesterday/NN
,/,
and/CC
the/DT
banks/NNS
must/MD
wait/VB
at/IN
least/JJS
30/CD
days/NNS
before/IN
closing/VBG
the/DT
purchase/NN
./.
A/DT
closing/NN
date/NN
has/VBZ
n't/RB
been/VBN
set/VBN
./.
The/DT
thrifts/NNS
agreed/VBD
to/TO
the/DT
transaction/NN
in/IN
August/NNP
AEP/NNP
INDUSTRIES/NNPS
Inc./NNP
directors/NNS
authorized/VBD
a/DT
3-for-2/JJ
split/NN
of/IN
the/DT
common/JJ
,/,
payable/JJ
Dec./NNP
7/CD
to/TO
stock/VB
of/IN
record/NN
Nov./NNP
22/CD
./.
The/DT
split/NN
was/VBD
aimed/VBN
at/IN
boosting/VBG
the/DT
stock/NN
's/POS
liquidity/NN
,/,
said/VBD
Brendan/NNP
Barba/NNP
,/,
chairman/NN
of/IN
the/DT
Moonachie/NNP
,/,
N.J./NNP
,/,
maker/NN
of/IN
plastic/NN
film/NN
products/NNS
./.
After/IN
the/DT
split/NN
,/,
the/DT
company/NN
will/MD
have/VB
more/JJR
than/IN
4.7/CD
million/CD
shares/NNS
outstanding/JJ
./.
In/IN
national/JJ
over-the-counter/JJ
trading/NN
yesterday/NN
,/,
AEP/NNP
shares/NNS
closed/VBD
at/IN
$/$
21.25/CD
,/,
down/RB
50/CD
cents/NNS
./.
CRESTMONT/NNP
FEDERAL/NNP
SAVINGS/NNPS
&/CC
LOAN/NNP
ASSOCIATION/NNP
Edison/NNP
,/,
N.J./NNP
Lawrence/NNP
B./NNP
Seidman/NNP
,/,
41/CD
years/NNS
old/JJ
,/,
was/VBD
named/VBN
chairman/NN
of/IN
this/DT
savings/NNS
and/CC
loan/NN
institution/NN
./.
He/PRP
will/MD
succeed/VB
Charles/NNP
L./NNP
Harrington/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
,/,
who/WP
retired/VBD
last/JJ
month/NN
./.
Crestmont/NNP
is/VBZ
conducting/VBG
a/DT
search/NN
for/IN
a/DT
chief/JJ
executive/NN
./.
Mr./NNP
Seidman/NNP
,/,
a/DT
director/NN
of/IN
Crestmont/NNP
since/IN
July/NNP
,/,
is/VBZ
general/JJ
partner/NN
of/IN
Seidman/NNP
Financial/NNP
Associates/NNPS
,/,
which/WDT
owns/VBZ
9.89/CD
%/NN
of/IN
Crestmont/NNP
./.
William/NNP
J./NNP
Russo/NNP
was/VBD
named/VBN
senior/JJ
vice/NN
president/NN
,/,
public/JJ
affairs/NNS
and/CC
advertising/NN
,/,
for/IN
this/DT
financial/JJ
and/CC
travel/NN
services/NNS
concern/NN
's/POS
American/NNP
Express/NNP
Bank/NNP
Ltd./NNP
subsidiary/NN
./.
Mr./NNP
Russo/NNP
,/,
38/CD
years/NNS
old/JJ
,/,
previously/RB
was/VBD
first/JJ
vice/NN
president/NN
,/,
public/JJ
affairs/NNS
and/CC
advertising/NN
,/,
at/IN
the/DT
banking/VBG
unit/NN
./.
Environmental/JJ
concerns/NNS
are/VBP
beginning/VBG
to/TO
have/VB
as/RB
much/JJ
influence/NN
in/IN
oil-industry/NN
spending/NN
plans/NNS
as/IN
the/DT
price/NN
of/IN
crude/NN
does/VBZ
./.
In/IN
the/DT
wake/NN
of/IN
the/DT
Exxon/NNP
Valdez/NNP
spill/NN
in/IN
March/NNP
,/,
new/JJ
governmental/JJ
drilling/NN
bans/NNS
are/VBP
sharply/RB
curtailing/VBG
exploration/NN
in/IN
promising/JJ
locations/NNS
offshore/RB
and/CC
in/IN
Alaska/NNP
./.
At/IN
the/DT
same/JJ
time/NN
,/,
moves/NNS
toward/IN
tighter/JJR
air-quality/NN
standards/NNS
are/VBP
spurring/VBG
interest/NN
in/IN
lighter/JJR
or/CC
alternative/JJ
fuels/NNS
that/WDT
do/VBP
n't/RB
pollute/VB
as/RB
much/RB
as/IN
fuel/NN
refined/VBN
from/IN
``/``
heavy/JJ
''/''
crudes/NNS
,/,
generally/RB
high/JJ
in/IN
sulfur/NN
./.
Over/IN
the/DT
years/NNS
,/,
the/DT
world/NN
's/POS
stream/NN
of/IN
oil/NN
has/VBZ
been/VBN
growing/VBG
heavier/RBR
./.
So/RB
the/DT
scramble/NN
is/VBZ
on/IN
for/IN
lighter/JJR
crudes/NNS
globally/RB
,/,
and/CC
for/IN
natural/JJ
gas/NN
in/IN
the/DT
U.S/NNP
./.
Recently/RB
Saudi/NNP
Arabia/NNP
and/CC
Venezuela/NNP
,/,
traditional/JJ
heavy-crude/NN
producers/NNS
,/,
have/VBP
boasted/VBN
of/IN
new/JJ
finds/NNS
of/IN
light/JJ
,/,
low-sulfur/JJ
oil/NN
by/IN
their/PRP$
national/JJ
oil/NN
companies/NNS
./.
Venezuela/NNP
has/VBZ
also/RB
earmarked/VBN
$/$
200/CD
million/CD
in/IN
new/JJ
money/NN
for/IN
light-crude/NN
exploration/NN
./.
And/CC
some/DT
oil/NN
companies/NNS
are/VBP
trying/VBG
to/TO
lock/VB
in/RP
future/JJ
supplies/NNS
./.
Typical/JJ
is/VBZ
Ente/NNP
Nazionale/NNP
Idrocarburi/NNP
,/,
Italy/NNP
's/POS
state-owned/JJ
energy/NN
company/NN
,/,
which/WDT
not/RB
long/RB
ago/RB
acquired/VBN
through/IN
its/PRP$
AGIP/NNP
oil/NN
subsidiary/NN
a/DT
5/CD
%/NN
share/NN
in/IN
the/DT
consortium/NN
accounting/NN
for/IN
half/NN
of/IN
Nigeria/NNP
's/POS
oil/NN
output/NN
./.
AGIP/NNP
already/RB
has/VBZ
an/DT
oil/NN
stake/NN
in/IN
Libya/NNP
./.
Both/DT
countries/NNS
produce/VBP
high-quality/JJ
,/,
low-sulfur/JJ
crudes/NNS
especially/RB
suited/VBN
to/TO
making/VBG
high-octane/JJ
motor/NN
fuel/NN
at/IN
minimum/NN
refining/NN
cost/NN
./.
Franco/NNP
Reviglio/NNP
,/,
ENI/NNP
chairman/NN
,/,
looks/VBZ
for/IN
sweeping/JJ
structural/JJ
change/NN
in/IN
the/DT
oil/NN
industry/NN
--/:
he/PRP
calls/VBZ
it/PRP
a/DT
``/``
revolution/NN
''/''
requiring/VBG
huge/JJ
investments/NNS
--/:
as/IN
a/DT
result/NN
of/IN
environmental/JJ
issues/NNS
./.
He/PRP
made/VBD
a/DT
special/JJ
trip/NN
to/TO
examine/VB
U.S./NNP
environmental/JJ
trends/NNS
because/IN
they/PRP
are/VBP
often/RB
followed/VBN
in/IN
Europe/NNP
./.
ENI/NNP
needs/VBZ
to/TO
know/VB
what/WP
's/VBZ
coming/VBG
as/IN
it/PRP
prepares/VBZ
to/TO
spend/VB
some/DT
$/$
1.3/CD
billion/CD
on/IN
upgrading/VBG
its/PRP$
refineries/NNS
,/,
he/PRP
says/VBZ
./.
Oil/NN
companies/NNS
world-wide/RB
will/MD
have/VB
``/``
to/TO
spend/VB
a/DT
lot/NN
of/IN
money/NN
for/IN
the/DT
cleaner/JJR
fuels/NNS
that/WDT
will/MD
be/VB
required/VBN
,/,
''/''
says/VBZ
John/NNP
H./NNP
Lichtblau/NNP
,/,
the/DT
president/NN
of/IN
the/DT
Petroleum/NNP
Industry/NNP
Research/NNP
Foundation/NNP
./.
It/PRP
will/MD
go/VB
for/IN
work/NN
ranging/VBG
from/IN
refinery/NN
modification/NN
to/TO
changes/NNS
in/IN
the/DT
distribution/NN
system/NN
,/,
including/VBG
the/DT
way/NN
service/NN
stations/NNS
pump/VBP
fuel/NN
into/IN
cars/NNS
./.
In/IN
the/DT
U.S./NNP
,/,
the/DT
search/NN
for/IN
oil/NN
had/VBD
been/VBN
headed/VBN
toward/IN
environmentally/RB
sensitive/JJ
areas/NNS
believed/VBN
to/TO
have/VB
vast/JJ
reserves/NNS
./.
Alaska/NNP
's/POS
Arctic/NNP
National/NNP
Wildlife/NNP
Refuge/NNP
alone/RB
is/VBZ
thought/VBN
to/TO
hide/VB
more/JJR
than/IN
three/CD
billion/CD
barrels/NNS
of/IN
oil/NN
./.
Until/IN
the/DT
tanker/NN
spill/NN
,/,
Big/NNP
Oil/NNP
was/VBD
slowly/RB
convincing/JJ
authorities/NNS
it/PRP
could/MD
safely/RB
produce/VB
from/IN
such/JJ
places/NNS
./.
Now/RB
the/DT
wildlife/NN
refuge/NN
has/VBZ
been/VBN
closed/VBN
to/TO
the/DT
industry/NN
,/,
possibly/RB
for/IN
years/NNS
./.
Similarly/RB
,/,
a/DT
group/NN
of/IN
companies/NNS
led/VBN
by/IN
Chevron/NNP
Corp./NNP
has/VBZ
been/VBN
unable/JJ
to/TO
pump/VB
oil/NN
found/VBN
off/IN
the/DT
California/NNP
coast/NN
in/IN
the/DT
early/JJ
1980s/NNS
./.
A/DT
huge/JJ
production/NN
system/NN
built/VBN
in/IN
the/DT
sea/NN
off/IN
Santa/NNP
Barbara/NNP
and/CC
ashore/RB
is/VBZ
sitting/VBG
idle/JJ
./.
But/CC
the/DT
push/NN
for/IN
cleaner/JJR
fuels/NNS
is/VBZ
increasing/VBG
the/DT
attractiveness/NN
of/IN
natural/JJ
gas/NN
./.
More/JJR
than/IN
half/PDT
the/DT
domestic/JJ
drilling/NN
now/RB
under/IN
way/NN
is/VBZ
for/IN
gas/NN
,/,
partly/RB
on/IN
the/DT
assumption/NN
that/DT
demand/NN
will/MD
rise/VB
for/IN
a/DT
fuel/NN
that/WDT
is/VBZ
cleaner/JJR
to/TO
burn/VB
than/IN
either/DT
oil/NN
or/CC
coal/NN
./.
Activity/NN
has/VBZ
revived/VBN
in/IN
the/DT
largest/JJS
U.S./NNP
gas-producing/NN
regions/NNS
,/,
such/JJ
as/IN
the/DT
Gulf/NNP
of/IN
Mexico/NNP
./.
Santa/NNP
Fe/NNP
International/NNP
Corp./NNP
,/,
which/WDT
is/VBZ
owned/VBN
by/IN
Kuwait/NNP
Santa/NNP
Fe/NNP
Southern/NNP
Pacific/NNP
's/POS
unit/NN
development/NN
of/IN
a/DT
well/NN
off/IN
Texas/NNP
'/POS
Matagorda/NNP
Island/NNP
where/WRB
it/PRP
found/VBD
gas/NN
in/IN
1987/CD
./.
``/``
We/PRP
could/MD
have/VB
sat/VBN
on/IN
it/PRP
longer/RBR
,/,
but/CC
the/DT
impetus/NN
is/VBZ
to/TO
get/VB
the/DT
gas/NN
to/TO
the/DT
marketplace/NN
,/,
''/''
says/VBZ
Richard/NNP
Poole/NNP
,/,
senior/JJ
scout/NN
for/IN
Santa/NNP
Fe/NNP
International/NNP
./.
``/``
We/PRP
're/VBP
trying/VBG
to/TO
get/VB
it/PRP
on/IN
line/NN
as/RB
soon/RB
as/IN
possible/RB
now/RB
./.
''/''
This/DT
month/NN
,/,
Exxon/NNP
Corp./NNP
announced/VBD
plans/NNS
for/IN
a/DT
400-day/JJ
project/NN
drilling/VBG
for/IN
gas/NN
about/IN
five/CD
miles/NNS
underground/RB
in/IN
the/DT
Anadarko/NNP
Basin/NNP
of/IN
western/JJ
Oklahoma/NNP
--/:
the/DT
deepest/JJS
drilling/NN
project/NN
in/IN
the/DT
U.S/NNP
./.
Exxon/NNP
will/MD
use/VB
a/DT
Parker/NNP
Drilling/NNP
Co./NNP
rig/NN
built/VBN
in/IN
1981/CD
that/WDT
can/MD
go/VB
down/RP
9/CD
1\/2/CD
miles/NNS
./.
As/IN
the/DT
Soviet/NNP
Union/NNP
grapples/VBZ
with/IN
its/PRP$
worsening/VBG
economy/NN
,/,
leading/JJ
reformers/NNS
have/VBP
drawn/VBN
up/RP
a/DT
blueprint/NN
for/IN
change/NN
designed/VBN
to/TO
push/VB
the/DT
nation/NN
much/RB
closer/RBR
to/TO
a/DT
free-market/NN
system/NN
./.
The/DT
proposals/NNS
go/VBP
far/RB
beyond/IN
the/DT
current/JJ
and/CC
rather/RB
confused/JJ
policies/NNS
of/IN
perestroika/FW
,/,
Mikhail/NNP
Gorbachev/NNP
's/POS
restructuring/NN
of/IN
the/DT
economy/NN
./.
They/PRP
lay/VBD
out/RP
a/DT
clear/JJ
timetable/NN
and/CC
methodology/NN
for/IN
liberalizing/VBG
the/DT
system/NN
of/IN
setting/VBG
prices/NNS
,/,
breaking/VBG
up/RP
huge/JJ
industrial/JJ
monopolies/NNS
and/CC
putting/VBG
unprofitable/JJ
state-owned/JJ
companies/NNS
out/IN
of/IN
business/NN
./.
They/PRP
also/RB
address/VBP
such/JJ
taboo/JJ
subjects/NNS
as/IN
the/DT
likelihood/NN
of/IN
unemployment/NN
and/CC
high/JJ
inflation/NN
,/,
and/CC
recommend/VB
ways/NNS
to/TO
soften/VB
the/DT
social/JJ
consequences/NNS
./.
While/IN
many/JJ
solutions/NNS
to/TO
the/DT
nation/NN
's/POS
economic/JJ
troubles/NNS
are/VBP
being/VBG
discussed/VBN
,/,
the/DT
blueprint/NN
is/VBZ
attracting/VBG
widespread/JJ
attention/NN
here/RB
because/IN
of/IN
its/PRP$
comprehensiveness/NN
and/CC
presumed/VBN
high-level/JJ
authorship/NN
./.
Although/IN
it/PRP
was/VBD
published/VBN
unsigned/JJ
in/IN
the/DT
latest/JJS
edition/NN
of/IN
the/DT
weekly/JJ
Ekonomicheskaya/NNP
Gazeta/NNP
,/,
Soviet/JJ
sources/NNS
say/VBP
the/DT
article/NN
was/VBD
written/VBN
by/IN
Leonid/NNP
Abalkin/NNP
and/CC
a/DT
small/JJ
group/NN
of/IN
colleagues/NNS
./.
Mr./NNP
Abalkin/NNP
,/,
head/NN
of/IN
the/DT
Academy/NNP
of/IN
Science/NNP
's/POS
Institute/NNP
of/IN
Economics/NNP
,/,
was/VBD
recently/RB
appointed/VBN
deputy/NN
chairman/NN
of/IN
the/DT
Soviet/JJ
government/NN
and/CC
head/NN
of/IN
a/DT
state/NN
commission/NN
on/IN
economic/JJ
reform/NN
./.
``/``
It/PRP
's/VBZ
clearly/RB
a/DT
manifesto/NN
for/IN
the/DT
next/JJ
stage/NN
of/IN
perestroika/FW
,/,
''/''
said/VBD
one/CD
analyst/NN
./.
The/DT
economic/JJ
ideas/NNS
in/IN
the/DT
document/NN
are/VBP
much/RB
bolder/JJR
than/IN
current/JJ
policies/NNS
./.
For/IN
example/NN
,/,
the/DT
proposed/VBN
overhaul/NN
of/IN
prices/NNS
--/:
an/DT
extremely/RB
sensitive/JJ
political/JJ
topic/NN
--/:
is/VBZ
far/RB
more/RBR
precise/JJ
than/IN
the/DT
vague/JJ
plans/NNS
announced/VBN
by/IN
Mr./NNP
Gorbachev/NNP
in/IN
1987/CD
and/CC
later/RB
dropped/VBD
./.
But/CC
the/DT
proposals/NNS
also/RB
display/VBP
political/JJ
savvy/NN
,/,
couching/VBG
some/DT
of/IN
the/DT
most/RBS
controversial/JJ
ideas/NNS
in/IN
cautious/JJ
language/NN
so/RB
as/RB
not/RB
to/TO
alienate/VB
powerful/JJ
conservatives/NNS
in/IN
the/DT
government/NN
who/WP
stand/VBP
to/TO
lose/VB
out/RB
if/IN
they/PRP
are/VBP
implemented/VBN
./.
Seeking/VBG
a/DT
middle/JJ
path/NN
between/IN
opponents/NNS
of/IN
change/NN
and/CC
radicals/NNS
who/WP
demand/VBP
overnight/JJ
solutions/NNS
,/,
the/DT
article/NN
advocates/VBZ
what/WP
it/PRP
calls/VBZ
a/DT
``/``
radical-moderate/JJ
approach/NN
./.
''/''
The/DT
document/NN
is/VBZ
to/TO
be/VB
discussed/VBN
at/IN
a/DT
conference/NN
of/IN
leading/JJ
economists/NNS
late/RB
this/DT
month/NN
,/,
and/CC
will/MD
probably/RB
be/VB
presented/VBN
to/TO
the/DT
Soviet/NNP
Parliament/NNP
for/IN
consideration/NN
this/DT
year/NN
./.
As/IN
policy-makers/NNS
draw/VBP
up/RP
proposals/NNS
for/IN
the/DT
next/JJ
five-year/JJ
plan/NN
,/,
which/WDT
starts/VBZ
in/IN
1991/CD
,/,
the/DT
blueprint/NN
represents/VBZ
a/DT
powerful/JJ
first/JJ
shot/NN
in/IN
what/WP
is/VBZ
likely/JJ
to/TO
be/VB
a/DT
fierce/JJ
battle/NN
over/IN
economic/JJ
reform/NN
./.
The/DT
authors/NNS
make/VBP
a/DT
gloomy/JJ
assessment/NN
of/IN
the/DT
economy/NN
and/CC
concede/VBP
that/IN
``/``
quick/JJ
and/CC
easy/JJ
paths/NNS
to/TO
success/NN
simply/RB
do/VBP
n't/RB
exist/VB
./.
''/''
Instead/RB
,/,
they/PRP
map/VBP
out/RP
a/DT
strategy/NN
in/IN
several/JJ
phases/NNS
from/IN
now/RB
until/IN
1995/CD
./.
Most/JJS
of/IN
the/DT
measures/NNS
would/MD
probably/RB
only/RB
start/VB
to/TO
have/VB
an/DT
effect/NN
on/IN
beleaguered/JJ
Soviet/JJ
consumers/NNS
in/IN
two/CD
to/TO
three/CD
years/NNS
at/IN
the/DT
earliest/JJS
./.
The/DT
key/JJ
steps/NNS
advocated/VBN
include/VBP
:/:
--/:
PROPERTY/NN
./.
Rigid/JJ
ideological/JJ
restrictions/NNS
on/IN
property/NN
ownership/NN
should/MD
be/VB
abandoned/VBN
./.
The/DT
document/NN
proposes/VBZ
breaking/VBG
up/RP
the/DT
monolithic/JJ
system/NN
of/IN
state-owned/JJ
enterprises/NNS
and/CC
farms/NNS
and/CC
allowing/VBG
a/DT
big/JJ
private/JJ
sector/NN
to/TO
flourish/VB
,/,
helped/VBN
by/IN
tough/JJ
anti-monopoly/JJ
legislation/NN
./.
The/DT
economy/NN
would/MD
be/VB
thrown/VBN
open/JJ
to/TO
numerous/JJ
types/NNS
of/IN
ownership/NN
between/IN
now/RB
and/CC
1992/CD
,/,
including/VBG
factories/NNS
leased/VBN
by/IN
workers/NNS
or/CC
owned/VBN
by/IN
shareholders/NNS
,/,
cooperatives/NNS
and/CC
joint/JJ
ventures/NNS
./.
Some/DT
forms/NNS
of/IN
private/JJ
property/NN
would/MD
be/VB
sanctioned/VBN
./.
Such/JJ
moves/NNS
would/MD
greatly/RB
reduce/VB
the/DT
power/NN
of/IN
government/NN
ministries/NNS
,/,
who/WP
now/RB
jealously/RB
guard/VBP
their/PRP$
turf/NN
and/CC
are/VBP
seen/VBN
as/IN
one/CD
of/IN
the/DT
major/JJ
obstacles/NNS
blocking/VBG
economic/JJ
reform/NN
./.
--/:
FINANCES/NNS
./.
Emergency/NN
measures/NNS
would/MD
be/VB
introduced/VBN
to/TO
ease/VB
the/DT
country/NN
's/POS
financial/JJ
crisis/NN
,/,
notably/RB
its/PRP$
$/$
200/CD
billion/CD
budget/NN
deficit/NN
./.
By/IN
the/DT
end/NN
of/IN
next/JJ
year/NN
,/,
all/DT
loss-making/JJ
state/NN
enterprises/NNS
would/MD
be/VB
put/VBN
out/IN
of/IN
business/NN
or/CC
handed/VBN
over/RB
to/TO
workers/NNS
who/WP
would/MD
buy/VB
or/CC
lease/VB
them/PRP
or/CC
turn/VB
them/PRP
into/IN
cooperatives/NNS
./.
Similar/JJ
steps/NNS
would/MD
be/VB
taken/VBN
to/TO
liquidate/VB
unprofitable/JJ
state/NN
and/CC
collective/JJ
farms/NNS
by/IN
the/DT
end/NN
of/IN
1991/CD
./.
A/DT
unified/JJ
system/NN
of/IN
taxation/NN
should/MD
be/VB
introduced/VBN
rapidly/RB
./.
To/TO
mop/VB
up/RP
some/DT
of/IN
the/DT
300/CD
billion/CD
rubles/NNS
in/IN
circulation/NN
,/,
the/DT
government/NN
should/MD
encourage/VB
home/NN
ownership/NN
,/,
including/VBG
issuing/VBG
bonds/NNS
that/WDT
guarantee/VBP
holders/NNS
the/DT
right/NN
to/TO
purchase/VB
an/DT
apartment/NN
./.
--/:
LABOR/NN
./.
A/DT
genuine/JJ
market/NN
for/IN
labor/NN
and/CC
wages/NNS
would/MD
replace/VB
the/DT
present/JJ
rigid/JJ
,/,
centralized/JJ
system/NN
./.
Departing/VBG
from/IN
decades/NNS
of/IN
Soviet/JJ
dogma/NN
,/,
the/DT
new/JJ
system/NN
would/MD
lead/VB
to/TO
big/JJ
differences/NNS
in/IN
pay/NN
between/IN
workers/NNS
and/CC
almost/RB
certainly/RB
to/TO
unemployment/NN
./.
To/TO
cushion/VB
the/DT
blows/NNS
,/,
the/DT
government/NN
would/MD
introduce/VB
a/DT
minimum/NN
wage/NN
and/CC
unemployment/NN
benefits/NNS
./.
--/:
PRICES/NN
./.
The/DT
entire/JJ
system/NN
of/IN
centrally/RB
set/VBN
prices/NNS
would/MD
be/VB
overhauled/VBN
,/,
and/CC
free-market/NN
prices/NNS
introduced/VBN
for/IN
most/JJS
wholesale/JJ
trade/NN
and/CC
some/DT
retail/JJ
trade/NN
./.
Consumers/NNS
would/MD
still/RB
be/VB
able/JJ
to/TO
buy/VB
some/DT
food/NN
and/CC
household/NN
goods/NNS
at/IN
subsidized/JJ
prices/NNS
,/,
but/CC
luxury/NN
and/CC
imported/VBN
items/NNS
,/,
including/VBG
food/NN
,/,
would/MD
be/VB
sold/VBN
at/IN
market/NN
prices/NNS
./.
Wholesale/JJ
prices/NNS
would/MD
be/VB
divided/VBN
into/IN
three/CD
categories/NNS
:/:
raw/JJ
materials/NNS
sold/VBN
at/IN
fixed/VBN
prices/NNS
close/RB
to/TO
world/NN
levels/NNS
;/:
government-set/VBN
procurement/NN
prices/NNS
for/IN
a/DT
small/JJ
number/NN
of/IN
key/JJ
products/NNS
;/:
and/CC
free/JJ
prices/NNS
for/IN
everything/NN
else/RB
to/TO
be/VB
determined/VBN
by/IN
contracts/NNS
between/IN
suppliers/NNS
and/CC
purchasers/NNS
./.
Inflation-adjusted/VBN
social/JJ
benefits/NNS
would/MD
ensure/VB
that/IN
the/DT
poor/JJ
and/CC
elderly/JJ
do/VBP
n't/RB
suffer/VB
unduly/RB
./.
--/:
FOREIGN/JJ
TRADE/NN
./.
The/DT
current/JJ
liberalization/NN
and/CC
decentralization/NN
of/IN
foreign/JJ
trade/NN
would/MD
be/VB
taken/VBN
much/RB
further/RBR
./.
Soviet/JJ
companies/NNS
would/MD
face/VB
fewer/JJR
obstacles/NNS
for/IN
exports/NNS
and/CC
could/MD
even/RB
invest/VB
their/PRP$
hard/JJ
currency/NN
abroad/RB
./.
Foreigners/NNS
would/MD
receive/VB
greater/JJR
incentives/NNS
to/TO
invest/VB
in/IN
the/DT
U.S.S.R./NNP
Alongside/RB
the/DT
current/JJ
non-convertible/JJ
ruble/NN
,/,
a/DT
second/JJ
currency/NN
would/MD
be/VB
introduced/VBN
that/DT
could/MD
be/VB
freely/RB
exchanged/VBN
for/IN
dollars/NNS
and/CC
other/JJ
Western/JJ
currencies/NNS
./.
A/DT
domestic/JJ
foreign/JJ
exchange/NN
market/NN
would/MD
be/VB
set/VBN
up/RB
as/IN
part/NN
of/IN
an/DT
overhaul/NN
of/IN
the/DT
nation/NN
's/POS
banking/NN
system/NN
./.
The/DT
blueprint/NN
is/VBZ
at/IN
its/PRP$
vaguest/JJS
when/WRB
referring/VBG
to/TO
the/DT
fate/NN
of/IN
the/DT
two/CD
powerful/JJ
economic/JJ
institutions/NNS
that/WDT
seem/VBP
likely/RB
to/TO
oppose/VB
such/JJ
sweeping/JJ
plans/NNS
:/:
the/DT
State/NNP
Planning/NNP
Committee/NNP
,/,
known/VBN
as/IN
Gosplan/NNP
,/,
and/CC
the/DT
State/NNP
Committee/NNP
for/IN
Material/NNP
Supply/NNP
,/,
or/CC
Gossnab/NNP
./.
But/CC
it/PRP
hints/VBZ
strongly/RB
that/IN
both/DT
organizations/NNS
would/MD
increasingly/RB
lose/VB
their/PRP$
clout/NN
as/IN
the/DT
changes/NNS
,/,
particularly/RB
the/DT
introduction/NN
of/IN
wholesale/JJ
trade/NN
and/CC
the/DT
breakup/NN
of/IN
state/NN
monopolies/NNS
,/,
take/VBP
effect/NN
./.
Ready/JJ
,/,
Willing/JJ
and/CC
Unable/JJ
I/PRP
always/RB
lift/VBP
the/DT
hood/NN
When/WRB
my/PRP$
car/NN
does/VBZ
n't/RB
start/VB
;/:
If/IN
gadgets/NNS
at/IN
home/NN
do/VBP
n't/RB
work/VB
I/PRP
coolly/RB
take/VBP
them/PRP
apart/RB
./.
I/PRP
'll/MD
admit/VB
there/EX
's/VBZ
nothing/NN
wrong/JJ
That/IN
I/PRP
ever/RB
do/VBP
find/VB
,/,
But/CC
it/PRP
's/VBZ
nice/JJ
when/WRB
people/NNS
say/VBP
I/PRP
appear/VBP
mechanically/RB
inclined/JJ
./.
--/:
Joshua/NNP
Adams/NNP
./.
Flick/NN
Shock/NN
At/IN
the/DT
movies/NNS
today/NN
In/IN
detail/NN
you/PRP
see/VBP
What/WP
the/DT
prof/NN
would/MD
n't/RB
show/VB
In/IN
Physiology/NNP
Three/NNP
./.
--/:
Robert/NNP
Gordon/NNP
./.
Candid/JJ
Comment/NN
Do/VBP
n't/RB
worry/VB
;/:
people/NNS
will/MD
learn/VB
to/TO
read/VB
as/RB
long/RB
as/IN
there/EX
are/VBP
TV/NN
program/NN
listings/NNS
./.
--/:
John/NNP
Drybred/NNP
./.
Albert/NNP
Engelken/NNP
and/CC
Robert/NNP
Thomson/NNP
had/VBD
never/RB
met/VBN
,/,
though/IN
for/IN
38/CD
years/NNS
their/PRP$
lives/NNS
had/VBD
been/VBN
intertwined/VBN
in/IN
a/DT
way/NN
peculiar/JJ
to/TO
the/DT
sports/NNS
world/NN
./.
Mr./NNP
Engelken/NNP
,/,
now/RB
a/DT
transit-association/NN
executive/NN
in/IN
Washington/NNP
,/,
D.C./NNP
,/,
and/CC
Mr./NNP
Thomson/NNP
,/,
a/DT
paper-products/NNS
salesman/NN
in/IN
Montvale/NNP
,/,
N.J./NNP
,/,
had/VBD
n't/RB
even/RB
talked/VBN
to/TO
each/DT
other/JJ
./.
But/CC
one/CD
recent/JJ
day/NN
,/,
they/PRP
became/VBD
much/RB
closer/JJR
./.
Mr./NNP
Engelken/NNP
,/,
a/DT
rabid/JJ
baseball/NN
fan/NN
,/,
pores/VBZ
over/IN
the/DT
sports/NNS
pages/NNS
to/TO
chart/VB
the/DT
exploits/NNS
of/IN
``/``
my/PRP$
favorite/JJ
and/CC
not-so-favorite/JJ
teams/NNS
and/CC
players/NNS
./.
''/''
He/PRP
often/RB
groans/VBZ
,/,
he/PRP
says/VBZ
,/,
at/IN
the/DT
``/``
clutter/NN
''/''
of/IN
sports/NNS
stories/NNS
about/IN
drugs/NNS
,/,
alcohol/NN
,/,
gambling/NN
and/CC
some/DT
player/NN
's/POS

lament/NN
``/``
about/IN
the/DT
miserly/JJ
millions/NNS
he/PRP
is/VBZ
offered/VBN
to/TO
play/VB
the/DT
game/NN
./.
''/''
His/PRP$
morning/NN
paper/NN
,/,
the/DT
Washington/NNP
Post/NNP
,/,
even/RB
carries/VBZ
a/DT
sports/NNS
column/NN
called/VBN
``/``
Jurisprudence/NN
''/''
that/WDT
recounts/VBZ
the/DT
latest/JJS
arrests/NNS
and/CC
convictions/NNS
of/IN
players/NNS
and/CC
team/NN
managers/NNS
./.
Like/IN
many/JJ
sports/NNS
buffs/NNS
,/,
Mr./NNP
Engelken/NNP
has/VBZ
turned/VBN
cynic/JJ
./.
But/CC
his/PRP$
is/VBZ
a/DT
story/NN
about/IN
a/DT
hero/NN
in/IN
an/DT
era/NN
of/IN
sports/NNS
anti-heroes/NNS
,/,
and/CC
about/IN
what/WP
Babe/NNP
Ruth/NNP
,/,
Mr./NNP
Engelken/NNP
reminds/VBZ
us/PRP
,/,
once/RB
called/VBD
``/``
the/DT
only/RB
real/JJ
game/NN
in/IN
the/DT
world/NN
./.
''/''
To/TO
Mr./NNP
Engelken/NNP
,/,
it/PRP
is/VBZ
also/RB
a/DT
story/NN
``/``
about/IN
love/NN
,/,
because/IN
I/PRP
'm/VBP
blessed/VBN
to/TO
have/VB
a/DT
wife/NN
who/WP
still/RB
thinks/VBZ
her/PRP
slightly/RB
eccentric/JJ
husband/NN
's/POS
50th/JJ
birthday/NN
deserves/VBZ
the/DT
ultimate/JJ
present/NN
./.
''/''
To/TO
understand/VB
what/WP
Mr./NNP
Engelken/NNP
means/VBZ
,/,
one/PRP
must/MD
go/VB
back/RB
to/TO
a/DT
sunny/JJ
October/NNP
afternoon/NN
in/IN
1951/CD
at/IN
New/NNP
York/NNP
's/POS
Polo/NNP
Grounds/NNPS
stadium/NN
,/,
where/WRB
,/,
it/PRP
can/MD
be/VB
argued/VBN
,/,
the/DT
most/RBS
dramatic/JJ
moment/NN
in/IN
baseball/NN
history/NN
was/VBD
played/VBN
out/RB
./.
It/PRP
was/VBD
the/DT
ninth/JJ
inning/NN
of/IN
the/DT
third/JJ
game/NN
of/IN
a/DT
three-game/JJ
playoff/NN
between/IN
the/DT
Brooklyn/NNP
Dodgers/NNPS
and/CC
the/DT
New/NNP
York/NNP
Giants/NNPS
the/DT
predecessor/NN
to/TO
the/DT
San/NNP
Francisco/NNP
Giants/NNP
scheduled/VBN
to/TO
play/VB
in/IN
tonight/NN
's/POS
world/NN
series/NN
Baseball/NN
fans/NNS
throughout/IN
New/NNP
York/NNP
had/VBD
sweated/VBN
out/RP
a/DT
long/JJ
summer/NN
with/IN
their/PRP$
teams/NNS
,/,
and/CC
now/RB
it/PRP
had/VBD
come/VBN
to/TO
this/DT
:/:
a/DT
battle/NN
between/IN
the/DT
two/CD
for/IN
the/DT
National/NNP
League/NNP
pennant/NN
--/:
down/IN
to/TO
the/DT
last/JJ
inning/NN
of/IN
the/DT
last/JJ
game/NN
,/,
no/RB
less/RB
./.
Some/DT
34,320/CD
fans/NNS
jammed/VBD
the/DT
stands/NNS
,/,
and/CC
shouted/VBD
at/IN
the/DT
top/NN
of/IN
their/PRP$
lungs/NNS
./.
Mr./NNP
Engelken/NNP
was/VBD
doing/VBG
the/DT
same/JJ
across/IN
the/DT
Hudson/NNP
River/NNP
in/IN
New/NNP
Jersey/NNP
,/,
where/WRB
,/,
with/IN
his/PRP$
nose/NN
pressed/VBN
against/IN
the/DT
front/JJ
window/NN
of/IN
the/DT
Passaic-Clifton/NNP
National/NNP
Bank/NNP
,/,
he/PRP
watched/VBD
the/DT
duel/NN
on/IN
a/DT
television/NN
set/NN
the/DT
bank/NN
set/VBN
up/RB
for/IN
the/DT
event/NN
./.
The/DT
playoff/NN
series/NN
had/VBD
riveted/VBN
the/DT
12-year-old/JJ
Giants/NNPS
fan/NN
./.
``/``
The/DT
Giants/NNP
struck/VBD
first/RB
,/,
winning/VBG
the/DT
opener/NN
,/,
3-1/CD
,/,
on/IN
a/DT
two-run/JJ
homer/NN
off/IN
Dodger/NNP
right-hander/NN
Ralph/NNP
Branca/NNP
,/,
''/''
Mr./NNP
Engelken/NNP
recalls/VBZ
with/IN
precision/NN
today/NN
./.
``/``
The/DT
Giants/NNP
got/VBD
swamped/VBN
in/IN
the/DT
second/JJ
game/NN
,/,
100/CD
,/,
and/CC
trailed/VBD
4-1/CD
going/VBG
into/IN
the/DT
bottom/NN
of/IN
the/DT
ninth/JJ
of/IN
the/DT
third/JJ
and/CC
deciding/JJ
game/NN
./.
The/DT
Giants/NNPS
scored/VBD
once/RB
and/CC
had/VBD
runners/NNS
on/IN
second/JJ
Whitey/NNP
Lockman/NNP
third/JJ
Clint/NNP
Hartung/NNP
Bobby/NNP
Thomson/NNP
advanced/VBD
to/TO
the/DT
plate/NN
./.
''/''
The/DT
rest/NN
,/,
as/IN
they/PRP
say/VBP
,/,
is/VBZ
history/NN
./.
Mr./NNP
Thomson/NNP
,/,
a/DT
tall/JJ
,/,
Scottish-born/JJ
,/,
right-hand/JJ
hitter/NN
,/,
stepped/VBD
into/IN
the/DT
batter/NN
's/POS
box/NN
./.
``/``
Thomson/NNP
took/VBD
a/DT
called/VBN
strike/NN
,/,
''/''
Mr./NNP
Engelken/NNP
recounts/VBZ
./.
The/DT
tension/NN
mounted/VBD
as/IN
Ralph/NNP
Branca/NNP
,/,
again/RB
on/IN
the/DT
mound/NN
,/,
stared/VBD
down/RP
the/DT
batter/NN
./.
He/PRP
wound/VBD
up/RB
and/CC
let/VB
loose/VB
a/DT
fastball/NN
./.
The/DT
pitch/NN
sailed/VBD
toward/IN
Bobby/NNP
Thomson/NNP
high/RB
and/CC
inside/RB
and/CC
then/RB
,/,
with/IN
a/DT
crack/NN
of/IN
the/DT
bat/NN
,/,
was/VBD
sent/VBN
rocketing/VBG
back/RB
into/IN
the/DT
lower/JJR
leftfield/NN
stands/NN
./.
``/``
Giants/NNS
fans/NNS
went/VBD
into/IN
euphoria/NN
,/,
''/''
says/VBZ
Mr./NNP
Engelken/NNP
./.
And/CC
Bobby/NNP
Thomson/NNP
was/VBD
made/VBN
a/DT
legend/NN
./.
The/DT
same/JJ
Bobby/NNP
Thomson/NNP
,/,
it/PRP
turns/VBZ
out/RB
,/,
who/WP
sells/VBZ
those/DT
paper-goods/NNS
today/NN
./.
There/EX
ca/MD
n't/RB
be/VB
an/DT
older/JJR
baseball/NN
fan/NN
alive/JJ
who/WP
does/VBZ
n't/RB
clearly/RB
remember/VB
that/IN
Bobby/NNP
Thomson/NNP
homer/NN
,/,
who/WP
ca/MD
n't/RB
tell/VB
you/PRP
where/WRB
he/PRP
was/VBD
when/WRB
he/PRP
heard/VBD
the/DT
famous/JJ
Russ/NNP
Hodges/NNP
radio/NN
broadcast/NN
--/:
the/DT
one/NN
that/WDT
concluded/VBD
with/IN
Mr./NNP
Hodges/NNP
shouting/VBG
,/,
over/RB
and/CC
over/RB
,/,
``/``
The/DT
Giants/NNPS
win/VBP
the/DT
pennant/NN
,/,
the/DT
Giants/NNPS
win/VBP
the/DT
pennant/NN
!/.
''/''
Mr./NNP
Engelken/NNP
and/CC
Mr./NNP
Thomson/NNP
drifted/VBD
in/IN
different/JJ
directions/NNS
in/IN
the/DT
subsequent/JJ
years/NNS
,/,
and/CC
the/DT
Polo/NNP
Grounds/NNPS
,/,
located/VBN
under/IN
Coogan/NNP
's/POS
Bluff/NNP
in/IN
upper/JJ
Manhattan/NNP
,/,
was/VBD
replaced/VBN
by/IN
a/DT
public-housing/NN
project/NN
./.
Mr./NNP
Thomson/NNP
played/VBD
outfield/NN
and/CC
third/JJ
base/NN
until/IN
1960/CD
,/,
posting/VBG
a/DT
lifetime/NN
.270/CD
batting/NN
average/NN
and/CC
chalking/VBG
up/RP
264/CD
home/NN
runs/NNS
before/IN
retiring/VBG
and/CC
going/VBG
into/IN
paper-goods/NNS
sales/NNS
./.
Mr./NNP
Engelken/NNP
moved/VBD
south/RB
to/TO
Washington/NNP
,/,
but/CC
he/PRP
took/VBD
with/IN
him/PRP
enduring/VBG
memories/NNS
of/IN
the/DT
homer/NN
of/IN
1951/CD
./.
When/WRB
his/PRP$
wife/NN
,/,
Betsy/NNP
,/,
came/VBD
down/IN
the/DT
aisle/NN
on/IN
their/PRP$
wedding/NN
day/NN
in/IN
1966/CD
,/,
Mr./NNP
Engelken/NNP
--/:
no/DT
slouch/NN
on/IN
the/DT
romantic/JJ
front/NN
--/:
gave/VBD
her/PRP
the/DT
ultimate/JJ
compliment/NN
:/:
``/``
You/PRP
look/VBP
prettier/JJR
than/IN
Bobby/NNP
Thomson/NNP
's/POS
home/NN
run/NN
./.
''/''
The/DT
couple/NN
's/POS
first/JJ
dog/NN
,/,
Homer/NNP
,/,
was/VBD
named/VBN
after/IN
the/DT
Great/JJ
Event/NN
,/,
though/IN
unwitting/JJ
friends/NNS
assumed/VBD
he/PRP
was/VBD
the/DT
namesake/NN
of/IN
the/DT
poet/NN
./.
And/CC
when/WRB
Mr./NNP
Engelken/NNP
's/POS
sister/NN
,/,
Martha/NNP
,/,
who/WP
was/VBD
born/VBN
two/CD
days/NNS
before/IN
the/DT
home/NN
run/NN
,/,
reached/VBD
her/PRP
25th/JJ
birthday/NN
,/,
Mr./NNP
Engelken/NNP
wrote/VBD
his/PRP$
sports/NNS
hero/NN
to/TO
tell/VB
him/PRP
of/IN
the/DT
coincidence/NN
of/IN
events/NNS
./.
Mr./NNP
Thomson/NNP
sent/VBD
off/RP
a/DT
card/NN
to/TO
Martha/NNP
:/:
``/``
It/PRP
does/VBZ
n't/RB
seem/VB
like/IN
25/CD
years/NNS
since/IN
I/PRP
hit/VBP
that/DT
home/NN
run/VB
to/TO
celebrate/VB
your/PRP$
birth/NN
,/,
''/''
it/PRP
read/VBD
./.
Martha/NNP
was/VBD
pleased/JJ
,/,
but/CC
nowhere/RB
near/RB
as/RB
much/RB
as/IN
Mr./NNP
Engelken/NNP
./.
The/DT
family/NN
license/NN
plate/NN
reads/VBZ
``/``
ENG/NNP
23/CD
,/,
''/''
the/DT
first/JJ
three/CD
letters/NNS
of/IN
the/DT
family/NN
name/NN
and/CC
--/:
no/DT
surprise/NN
here/RB
--/:
Bobby/NNP
Thomson/NNP
's/POS
uniform/JJ
number/NN
./.
And/CC
on/IN
Mr./NNP
Engelken/NNP
's/POS
40th/JJ
birthday/NN
,/,
his/PRP$
wife/NN
bought/VBD
a/DT
book/NN
detailing/VBG
the/DT
big/JJ
homer/NN
and/CC
sent/VBD
it/PRP
off/RP
to/TO
Mr./NNP
Thomson/NNP
to/TO
be/VB
autographed/VBN
./.
``/``
What/WP
could/MD
have/VB
been/VBN
better/JJR
?/.
''/''
asks/VBZ
Mr./NNP
Engelken/NNP
./.
Betsy/NNP
Engelken/NNP
asked/VBD
the/DT
same/JJ
question/NN
earlier/RBR
this/DT
year/NN
,/,
when/WRB
her/PRP$
husband/NN
was/VBD
about/IN
to/TO
turn/VB
50/CD
./.
She/PRP
had/VBD
an/DT
idea/NN
./.
On/IN
her/PRP$
husband/NN
's/POS
50th/JJ
birthday/NN
an/DT
auspicious/JJ
23/CD
years/NNS
of/IN
marriage/NN
,/,
it/PRP
should/MD
be/VB
noted/VBN
)/)
,/,
Betsy/NNP
,/,
Al/NNP
and/CC
their/PRP$
college-bound/JJ
son/NN
set/VBD
out/RB
for/IN
New/NNP
York/NNP
to/TO
visit/VB
Fordham/NNP
University/NNP
./.
Mrs./NNP
Engelken/NNP
had/VBD
scheduled/VBN
a/DT
stop/NN
on/IN
the/DT
New/NNP
Jersey/NNP
Turnpike/NNP
to/TO
,/,
she/PRP
told/VBD
her/PRP
husband/NN
,/,
pick/VB
up/RP
some/DT
papers/NNS
for/IN
a/DT
neighbor/NN
./.
The/DT
papers/NNS
would/MD
be/VB
handed/VBN
over/IN
at/IN
a/DT
bank/NN
of/IN
telephone/NN
booths/NNS
just/RB
off/IN
Exit/NN
10/CD
./.
``/``
It/PRP
sounded/VBD
like/IN
something/NN
out/IN
of/IN
Ian/NNP
Fleming/NNP
,/,
''/''
Mr./NNP
Engelken/NNP
recalls/VBZ
./.
At/IN
the/DT
appointed/JJ
exit/NN
,/,
the/DT
family/NN
pulled/VBD
over/RB
,/,
and/CC
Mrs./NNP
Engelken/NNP
went/VBD
to/TO
get/VB
her/PRP$
papers/NNS
./.
Mr./NNP
Engelken/NNP
turned/VBD
off/RP
the/DT
motor/NN
and/CC
rolled/VBD
down/RP
the/DT
window/NN
./.
In/IN
a/DT
matter/NN
of/IN
minutes/NNS
,/,
she/PRP
was/VBD
back/RB
,/,
with/IN
a/DT
tall/JJ
,/,
silver-haired/JJ
man/NN
in/RB
tow/RB
./.
She/PRP
crouched/VBD
down/RB
by/IN
the/DT
car/NN
window/NN
and/CC
addressed/VBD
her/PRP$
husband/NN
with/IN
her/PRP$
favorite/JJ
nickname/NN
:/:
``/``
Bertie/NNP
,/,
''/''
she/PRP
said/VBD
,/,
``/``
Happy/JJ
50th/JJ
Birthday/NN
./.
This/DT
is/VBZ
Bobby/NNP
Thomson/NNP
./.
''/''
``/``
And/CC
there/EX
he/PRP
was/VBD
,/,
''/''
recalls/VBZ
Mr./NNP
Engelken/NNP
./.
``/``
The/DT
hero/NN
of/IN
my/PRP$
youth/NN
,/,
the/DT
one/CD
person/NN
in/IN
history/NN
I/PRP
'd/MD
most/RBS
like/VB
to/TO
meet/VB
./.
Keep/VB
your/PRP$
Thomas/NNP
Jeffersons/NNPS
,/,
or/CC
St./NNP
Augustines/NNPS
or/CC
Michelangelos/NNPS
;/:
I/PRP
'd/MD
take/VB
baseball/NN
's/POS
Flying/NNP
Scot/NNP
without/IN
hesitation/NN
./.
''/''
They/PRP
talked/VBD
of/IN
the/DT
home/NN
run/NN
./.
``/``
I/PRP
thought/VBD
it/PRP
was/VBD
in/IN
the/DT
upper/JJ
deck/NN
,/,
''/''
said/VBD
Bobby/NNP
Thomson/NNP
,/,
now/RB
66/CD
years/NNS
old/JJ
./.
They/PRP
talked/VBD
of/IN
the/DT
aftermath/NN
./.
``/``
I/PRP
never/RB
thought/VBD
it/PRP
would/MD
become/VB
so/RB
momentous/JJ
,/,
''/''
Bobby/NNP
remarked/VBD
./.
Mr./NNP
Engelken/NNP
,/,
says/VBZ
his/PRP$
wife/NN
,/,
``/``
was/VBD
overwhelmed/JJ
by/IN
the/DT
whole/JJ
thing/NN
./.
It/PRP
was/VBD
worth/JJ
it/PRP
,/,
just/RB
for/IN
the/DT
look/NN
on/IN
Albert/NNP
's/POS
face/NN
./.
''/''
The/DT
two/CD
men/NNS
spent/VBD
an/DT
hour/NN
at/IN
Exit/NN
10/CD
,/,
rehashing/VBG
the/DT
event/NN
,/,
``/``
fulfilling/VBG
the/DT
lifelong/JJ
dream/NN
of/IN
a/DT
young/JJ
boy/NN
now/RB
turned/VBN
50/CD
,/,
''/''
Mr./NNP
Engelken/NNP
says/VBZ
./.
His/PRP$
hero/NN
signed/VBD
photographs/NNS
of/IN
the/DT
homer/NN
and/CC
diplomatically/RB
called/VBD
Ralph/NNP
Branca/NNP
``/``
a/DT
very/RB
fine/JJ
pitcher/NN
./.
''/''
And/CC
when/WRB
Mr./NNP
Engelken/NNP
asked/VBD
him/PRP
why/WRB
he/PRP
took/VBD
time/NN
off/RP
from/IN
work/NN
for/IN
somebody/NN
he/PRP
did/VBD
n't/RB
even/RB
know/VB
,/,
Bobby/NNP
Thomson/NNP
replied/VBD
:/:
``/``
You/PRP
know/VBP
,/,
Albert/NNP
,/,
if/IN
you/PRP
have/VBP
the/DT
chance/NN
in/IN
life/NN
to/TO
make/VB
somebody/NN
this/DT
happy/JJ
,/,
you/PRP
have/VBP
an/DT
obligation/NN
to/TO
do/VB
it/PRP
./.
''/''
In/IN
an/DT
interview/NN
,/,
Mr./NNP
Thomson/NNP
,/,
who/WP
is/VBZ
married/JJ
and/CC
has/VBZ
three/CD
grown/JJ
children/NNS
,/,
says/VBZ
he/PRP
has/VBZ
few/JJ
ties/NNS
to/TO
baseball/NN
these/DT
days/NNS
,/,
other/JJ
than/IN
playing/VBG
old-timers/NNS
games/NNS
now/RB
and/CC
again/RB
./.
But/CC
his/PRP$
fans/NNS
,/,
to/TO
his/PRP$
constant/JJ
amazement/NN
,/,
never/RB
let/VBP
him/PRP
forget/VB
the/DT
famous/JJ
four-bagger/NN
./.
His/PRP$
mail/NN
regularly/RB
recalls/VBZ
``/``
my/PRP$
one/CD
event/NN
,/,
''/''
and/CC
has/VBZ
been/VBN
growing/VBG
in/IN
recent/JJ
years/NNS
./.
In/IN
response/NN
to/TO
the/DT
letters/NNS
,/,
Mr./NNP
Thomson/NNP
usually/RB
sends/VBZ
an/DT
autographed/JJ
photo/NN
with/IN
a/DT
polite/JJ
note/NN
,/,
and/CC
rarely/RB
arranges/VBZ
a/DT
rendezvous/NN
./.
But/CC
when/WRB
Betsy/NNP
Engelken/NNP
wrote/VBD
him/PRP
,/,
saying/VBG
she/PRP
could/MD
stop/VB
near/IN
his/PRP$
New/NNP
Jersey/NNP
home/NN
,/,
it/PRP
seemed/VBD
different/JJ
./.
``/``
What/WP
a/DT
good/JJ
feeling/NN
it/PRP
would/MD
be/VB
for/IN
me/PRP
to/TO
do/VB
that/DT
,/,
''/''
he/PRP
says/VBZ
he/PRP
thought/VBD
./.
When/WRB
the/DT
Engelken/NNP
family/NN
got/VBD
back/RB
from/IN
its/PRP$
trip/NN
up/RB
north/RB
,/,
Mr./NNP
Engelken/NNP
wrote/VBD
it/PRP
all/DT
down/RP
,/,
just/RB
to/TO
make/VB
sure/JJ
no/DT
detail/NN
was/VBD
missed/VBN
./.
``/``
On/IN
the/DT
way/NN
home/NN
,/,
''/''
his/PRP$
notes/NNS
recall/VBP
,/,
``/``
it/PRP
took/VBD
concentrated/JJ
effort/NN
to/TO
keep/VB
that/DT
car/NN
pointed/VBD
south/RB
./.
My/PRP$
mind/NN
was/VBD
miles/NNS
north/RB
at/IN
a/DT
place/NN
called/VBD
Coogan/NNP
's/POS
Bluff/NNP
,/,
where/WRB
a/DT
real/JJ
sports/NNS
hero/NN
had/VBD
captured/VBN
the/DT
imagination/NN
of/IN
a/DT
kid/NN
who/WP
never/RB
fully/RB
grew/VBD
up/RB
and/CC
is/VBZ
all/PDT
the/DT
richer/JJR
for/IN
it/PRP
./.
``/``
Take/VB
heart/NN
,/,
sports/NNS
fans/NNS
,/,
''/''
he/PRP
wrote/VBD
./.
``/``
Real/JJ
heroes/NNS
exist/VBP
./.
You/PRP
might/MD
not/RB
find/VB
one/NN
in/IN
the/DT
`/``
Jurisprudence/NN
'/''
column/NN
./.
But/CC
who/WP
knows/VBZ
?/.
You/PRP
might/MD
meet/VB
up/RB
with/IN
him/PRP
at/IN
that/DT
bank/NN
of/IN
telephone/NN
booths/NNS
just/RB
off/IN
Exit/NN
10/CD
of/IN
the/DT
New/NNP
Jersey/NNP
Turnpike/NNP
./.
''/''
Southam/NNP
Inc./NNP
said/VBD
its/PRP$
unprofitable/JJ
weekly/JJ
newspaper/NN
,/,
The/DT
Financial/NNP
Times/NNP
of/IN
Canada/NNP
,/,
is/VBZ
up/IN
for/IN
sale/NN
./.
Analysts/NNS
said/VBD
the/DT
announcement/NN
,/,
the/DT
latest/JJS
in/IN
a/DT
series/NN
of/IN
divestitures/NNS
and/CC
restructuring/VBG
moves/NNS
,/,
is/VBZ
aimed/VBN
at/IN
improving/VBG
Southam/NNP
's/POS
earnings/NNS
before/IN
the/DT
expiration/NN
in/IN
June/NNP
of/IN
a/DT
standstill/JJ
pact/NN
with/IN
Torstar/NNP
Corp/NNP
./.
When/WRB
that/DT
agreement/NN
expires/VBZ
,/,
Torstar/NNP
will/MD
be/VB
free/JJ
to/TO
increase/VB
its/PRP$
22.4/CD
%/NN
stake/NN
in/IN
Southam/NNP
,/,
or/CC
to/TO
make/VB
an/DT
offer/NN
for/IN
the/DT
whole/JJ
company/NN
./.
Descendants/NNS
of/IN
the/DT
Southam/NNP
family/NN
hold/VBP
an/DT
additional/JJ
22.6/CD
%/NN
stake/NN
in/IN
the/DT
Toronto-based/JJ
company/NN
,/,
Canada/NNP
's/POS
largest/JJS
newspaper/NN
publisher/NN
./.
The/DT
newspaper/NN
could/MD
fetch/VB
between/IN
15/CD
million/CD
and/CC
20/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
12.8/CD
million/CD
to/TO
$/$
17.1/CD
million/CD
one/CD
analyst/NN
,/,
who/WP
asked/VBD
not/RB
to/TO
be/VB
identified/VBN
./.
A/DT
spokesman/NN
for/IN
Southam/NN
declined/VBD
to/TO
comment/VB
on/IN
the/DT
price/NN
the/DT
company/NN
is/VBZ
seeking/VBG
or/CC
on/IN
estimates/NNS
of/IN
the/DT
paper/NN
's/POS
annual/JJ
losses/NNS
,/,
which/WDT
most/JJS
analysts/NNS
place/VBP
at/IN
between/IN
C$/$
4/CD
million/CD
and/CC
C$/$
7/CD
million/CD
./.
Yesterday/NN
,/,
Southam/NNP
reported/VBD
third-quarter/JJ
earnings/NNS
of/IN
C$/$
10.8/CD
million/CD
on/IN
revenue/NN
of/IN
C$/$
395.4/CD
million/CD
,/,
down/RB
from/IN
C$/$
14.6/CD
million/CD
on/IN
revenue/NN
of/IN
C$/$
389.6/CD
million/CD
in/IN
the/DT
year-ago/JJ
quarter/NN
./.
``/``
To/TO
be/VB
profitable/JJ
,/,
the/DT
paper/NN
requires/VBZ
more/JJR
circulation/NN
and/CC
building/NN
circulation/NN
is/VBZ
an/DT
expensive/JJ
undertaking/NN
,/,
''/''
said/VBD
John/NNP
Macfarlane/NNP
,/,
the/DT
paper/NN
's/POS
publisher/NN
./.
Southam/NNP
said/VBD
the/DT
level/NN
of/IN
future/JJ
investment/NN
required/VBN
by/IN
the/DT
paper/NN
would/MD
have/VB
restricted/VBN
its/PRP$
options/NNS
in/IN
other/JJ
areas/NNS
./.
The/DT
acquisition/NN
of/IN
the/DT
Financial/NNP
Times/NNP
of/IN
Canada/NNP
is/VBZ
``/``
well/RB
within/IN
reach/NN
for/IN
any/DT
number/NN
of/IN


media/NNS
companies/NNS
,/,
both/DT
public/JJ
and/CC
private/JJ
,/,
''/''
said/VBD
James/NNP
Cole/NNP
,/,
an/DT
analyst/NN
with/IN
Toronto-based/JJ
BBN/NNP
James/NNP
Capel/NNP
Inc/NNP
./.
Possible/JJ
bidders/NNS
include/VBP
Christopher/NNP
Ondaatje/NNP
,/,
a/DT
Toronto/NNP
financier/NN
and/CC
vice/NN
chairman/NN
of/IN
Hees/NNP
International/NNP
Bancorp/NNP
Inc./NNP
,/,
a/DT
holding/VBG
company/NN
controlled/VBN
by/IN
Toronto/NNP
's/POS
Bronfman/NNP
family/NN
./.
Mr./NNP
Ondaatje/NNP
sold/VBD
his/PRP$
stake/NN
in/IN
Pagurian/NNP
Corp./NNP
to/TO
Hees/NNP
earlier/RB
this/DT
year/NN
and/CC
is/VBZ
said/VBN
to/TO
be/VB
seeking/VBG
a/DT
media/NNS
acquisition/NN
./.
Mr./NNP
Ondaatje/NNP
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
,/,
but/CC
Roy/NNP
Mac-Laren/NNP
,/,
chairman/NN
of/IN
CB/NNP
Media/NNP
,/,
a/DT
closely/RB
held/JJ
concern/NN
that/WDT
publishes/VBZ
two/CD
business/NN
magazines/NNS
,/,
said/VBD
his/PRP$
company/NN
would/MD
take/VB
a/DT
close/JJ
look/NN
at/IN
the/DT
newspaper/NN
./.
Mr./NNP
Cole/NNP
said/VBD
the/DT
sale/NN
of/IN
the/DT
77-year/JJ
Financial/NNP
Times/NNPS
,/,
which/WDT
Southam/NNP
has/VBZ
owned/VBN
since/IN
1961/CD
,/,
is/VBZ
consistent/JJ
with/IN
Southam/NNP
's/POS
strategy/NN
of/IN
cutting/VBG
costs/NNS
to/TO
obtain/VB
maximum/JJ
profits/NNS
from/IN
its/PRP$
operations/NNS
while/IN
disposing/VBG
of/IN
``/``
chronically/RB
under-performing/JJ
''/''
assets/NNS
./.
Southam/NNP
agreed/VBD
to/TO
sell/VB
its/PRP$
47/CD
%/NN
stake/NN
in/IN
Selkirk/NNP
Communications/NNPS
Ltd./NNP
,/,
a/DT
broadcasting/VBG
concern/NN
,/,
to/TO
Maclean/NNP
Hunter/NNP
Ltd./NNP
for/IN
about/IN
C$/$
285/CD
million/CD
last/JJ
year/NN
./.
This/DT
year/NN
,/,
it/PRP
has/VBZ
moved/VBN
to/TO
cut/VB
costs/NNS
in/IN
its/PRP$
newspaper/NN
division/NN
through/IN
layoffs/NNS
and/CC
asset/NN
sales/NNS
,/,
while/IN
reaching/VBG
joint/JJ
venture/NN
and/CC
acquisition/NN
agreements/NNS
in/IN
other/JJ
areas/NNS
./.
The/DT
Financial/NNP
Times/NNPS
of/IN
Canada/NNP
has/VBZ
no/DT
links/NN
to/TO
the/DT
British/JJ
daily/JJ
newspaper/NN
,/,
The/DT
Financial/NNP
Times/NNPS
./.
Norton/NNP
Co./NNP
said/VBD
net/JJ
income/NN
for/IN
the/DT
third/JJ
quarter/NN
fell/VBD
6/CD
%/NN
to/TO
$/$
20.6/CD
million/CD
,/,
or/CC
98/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
22/CD
million/CD
,/,
or/CC
$/$
1.03/CD
a/DT
share/NN
./.
Operating/NN
profit/NN
for/IN
the/DT
abrasives/NNS
,/,
engineering/NN
materials/NNS
and/CC
petroleum/NN
services/NNS
concern/NN
was/VBD
$/$
19.2/CD
million/CD
,/,
or/CC
91/CD
cents/NNS
a/DT
share/NN
,/,
up/RB
3/CD
%/NN
from/IN
$/$
18.7/CD
million/CD
,/,
or/CC
87/CD
cents/NNS
a/DT
share/NN
./.
The/DT
company/NN
had/VBD
a/DT
tax/NN
credit/NN
of/IN
$/$
1.4/CD
million/CD
./.
In/IN
the/DT
year-earlier/JJ
quarter/NN
,/,
the/DT
tax/NN
credit/NN
was/VBD
$/$
3.3/CD
million/CD
./.
Sales/NNS
rose/VBD
8/CD
%/NN
to/TO
$/$
368.5/CD
million/CD
from/IN
$/$
340.7/CD
million/CD
./.
Operating/NN
profit/NN
in/IN
the/DT
company/NN
's/POS
abrasives/NNS
segment/NN
rose/VBD
16/CD
%/NN
while/IN
operating/NN
profit/NN
in/IN
the/DT
engineering/NN
materials/NNS
segment/NN
rose/VBD
2/CD
%/NN
./.
However/RB
,/,
the/DT
company/NN
's/POS
petroleum/NN
services/NNS
segment/NN
,/,
while/IN
profitable/JJ
,/,
was/VBD
hurt/VBN
by/IN
high/JJ
financing/NN
costs/NNS
associated/VBN
with/IN
the/DT
company/NN
's/POS
buy-out/NN
of/IN
a/DT
50/CD
%/NN
stake/NN
in/IN
Eastman/NNP
Christensen/NNP
Co./NNP
from/IN
Texas/NNP
Eastern/NNP
Corp./NNP
last/JJ
June/NNP
./.
Norton/NNP
and/CC
Texas/NNP
Eastern/NNP
had/VBD
each/DT
held/VBD
a/DT
50/CD
%/NN
stake/NN
in/IN
Eastman/NNP
in/IN
a/DT
joint/JJ
venture/NN
./.
Norton/NN
announced/VBD
earlier/RB
this/DT
month/NN
that/IN
it/PRP
was/VBD
exploring/VBG
the/DT
possible/JJ
sale/NN
of/IN
all/DT
or/CC
part/NN
of/IN
Eastman/NNP
Christensen/NNP
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Norton/NNP
had/VBD
net/NN
of/IN
$/$
81.2/CD
million/CD
,/,
or/CC
$/$
3.87/CD
a/DT
share/NN
,/,
and/CC
a/DT
tax/NN
credit/NN
of/IN
$/$
4.4/CD
million/CD
./.
In/IN
the/DT
year-earlier/JJ
period/NN
,/,
the/DT
company/NN
had/VBD
net/NN
of/IN
$/$
77.2/CD
million/CD
,/,
or/CC
$/$
3.68/CD
a/DT
share/NN
,/,
and/CC
a/DT
tax/NN
credit/NN
of/IN
$/$
7.7/CD
million/CD
./.
Norton/NNP
had/VBD
operating/NN
profit/NN
of/IN
$/$
76.8/CD
million/CD
,/,
or/CC
$/$
3.66/CD
a/DT
share/NN
,/,
up/RB
11/CD
%/NN
from/IN
$/$
69.5/CD
million/CD
,/,
or/CC
$/$
3.31/CD
a/DT
share/NN
./.
Sales/NNS
rose/VBD
8/CD
%/NN
to/TO
$/$
1.15/CD
billion/CD
from/IN
$/$
1.06/CD
billion/CD
./.
Y.J./NNP
Park/NNP
and/CC
her/PRP$
family/NN
scrimped/VBD
for/IN
four/CD
years/NNS
to/TO
buy/VB
a/DT
tiny/JJ
apartment/NN
here/RB
,/,
but/CC
found/VBD
that/IN
the/DT
closer/RBR
they/PRP
got/VBD
to/TO
saving/VBG
the/DT
$/$
40,000/CD
they/PRP
originally/RB
needed/VBD
,/,
the/DT
more/RBR
the/DT
price/NN
rose/VBD
./.
By/IN
this/DT
month/NN
,/,
it/PRP
had/VBD
more/RBR
than/IN
doubled/VBN
./.
Now/RB
the/DT
33-year-old/JJ
housewife/NN
,/,
whose/WP$
husband/NN
earns/VBZ
a/DT
modest/JJ
salary/NN
as/IN
an/DT
assistant/NN
professor/NN
of/IN
economics/NNS
,/,
is/VBZ
saving/VBG
harder/RBR
than/IN
ever/RB
./.
``/``
I/PRP
am/VBP
determined/VBN
to/TO
get/VB
an/DT
apartment/NN
in/IN
three/CD
years/NNS
,/,
''/''
she/PRP
says/VBZ
./.
``/``
It/PRP
's/VBZ
all/DT
I/PRP
think/VBP
about/IN
or/CC
talk/VB
about/IN
./.
''/''
For/IN
the/DT
Parks/NNPS
and/CC
millions/NNS
of/IN
other/JJ
young/JJ
Koreans/NNPS
,/,
the/DT
long-cherished/JJ
dream/NN
of/IN
home/NN
ownership/NN
has/VBZ
become/VBN
a/DT
cruel/JJ
illusion/NN
./.
For/IN
the/DT
government/NN
,/,
it/PRP
has/VBZ
become/VBN
a/DT
highly/RB
volatile/JJ
political/JJ
issue/NN
./.
Last/JJ
May/NNP
,/,
a/DT
government/NN
panel/NN
released/VBD
a/DT
report/NN
on/IN
the/DT
extent/NN
and/CC
causes/VBZ
of/IN
the/DT
problem/NN
./.
During/IN
the/DT
past/JJ
15/CD
years/NNS
,/,
the/DT
report/NN
showed/VBD
,/,
housing/NN
prices/NNS
increased/VBD
nearly/RB
fivefold/RB
./.
The/DT
report/NN
laid/VBD
the/DT
blame/NN
on/IN
speculators/NNS
,/,
who/WP
it/PRP
said/VBD
had/VBN
pushed/VBN
land/NN
prices/NNS
up/RP
ninefold/RB
./.
The/DT
panel/NN
found/VBD
that/IN
since/IN
1987/CD
,/,
real-estate/NN
prices/NNS
rose/VBD
nearly/RB
50/CD
%/NN
in/IN
a/DT
speculative/JJ
fever/NN
fueled/VBN
by/IN
economic/JJ
prosperity/NN
,/,
the/DT
1988/CD
Seoul/NNP
Olympics/NNPS
and/CC
the/DT
government/NN
's/POS
pledge/NN
to/TO
rapidly/RB
develop/VB
Korea/NNP
's/POS
southwest/NN
./.
The/DT
result/NN
is/VBZ
that/IN
those/DT
rich/JJ
enough/RB
to/TO
own/VB
any/DT
real/JJ
estate/NN
at/IN
all/DT
have/VBP
boosted/VBN
their/PRP$
holdings/NNS
substantially/RB
./.
For/IN
those/DT
with/IN
no/DT
holdings/NNS
,/,
the/DT
prospects/NNS
of/IN
buying/VBG
a/DT
home/NN
are/VBP
ever/RB
slimmer/JJR
./.
In/IN
1987/CD
,/,
a/DT
quarter/NN
of/IN
the/DT
population/NN
owned/VBD
91/CD
%/NN
of/IN
the/DT
nation/NN
's/POS
71,895/CD
square/JJ
kilometers/NNS
of/IN
private/JJ
land/NN
,/,
the/DT
report/NN
said/VBD
,/,
and/CC
10/CD
%/NN
of/IN
the/DT
population/NN
owned/VBD
65/CD
%/NN
of/IN
the/DT
land/NN
devoted/VBN
to/TO
housing/NN
./.
Meanwhile/RB
,/,
the/DT
government/NN
's/POS
Land/NNP
Bureau/NNP
reports/VBZ
that/IN
only/JJ
about/IN
a/DT
third/NN
of/IN
Korean/JJ
families/NNS
own/VBP
their/PRP$
own/JJ
homes/NNS
./.
Rents/NNS
have/VBP
soared/VBN
along/IN
with/IN
house/NN
prices/NNS
./.
Former/JJ
National/NNP
Assemblyman/NNP
Hong/NNP
Sa-Duk/NNP
,/,
now/RB
a/DT
radio/NN
commentator/NN
,/,
says/VBZ
the/DT
problem/NN
is/VBZ
intolerable/JJ
for/IN
many/JJ
people/NNS
./.
``/``
I/PRP
'm/VBP
afraid/JJ
of/IN
a/DT
popular/JJ
revolt/NN
if/IN
this/DT
situation/NN
is/VBZ
n't/RB
corrected/VBN
,/,
''/''
he/PRP
adds/VBZ
./.
In/IN
fact/NN
,/,
during/IN
the/DT
past/JJ
three/CD
months/NNS
there/RB
have/VBP
been/VBN
several/JJ
demonstrations/NNS
at/IN
the/DT
office/NN
complex/NN
where/WRB
the/DT
Land/NNP
Bureau/NNP
is/VBZ
housed/VBN
,/,
and/CC
at/IN
the/DT
National/NNP
Assembly/NNP
,/,
demanding/VBG
the/DT
government/NN
put/VBD
a/DT
stop/NN
to/TO
real-estate/NN
speculation/NN
./.
President/NNP
Roh/NNP
Tae/NNP
Woo/NNP
's/POS
administration/NN
has/VBZ
been/VBN
studying/VBG
the/DT
real-estate/NN
crisis/NN
for/IN
the/DT
past/JJ
year/NN
with/IN
an/DT
eye/NN
to/TO
partial/JJ
land/NN
redistribution/NN
./.
Last/JJ
week/NN
,/,
the/DT
government/NN
took/VBD
three/CD
bills/NNS
to/TO
the/DT
National/NNP
Assembly/NNP
./.
The/DT
proposed/JJ
legislation/NN
is/VBZ
aimed/VBN
at/IN
rectifying/VBG
some/DT
of/IN
the/DT
inequities/NNS
in/IN
the/DT
current/JJ
land-ownership/NN
system/NN
./.
Highlights/NNS
of/IN
the/DT
bills/NNS
,/,
as/RB
currently/RB
framed/VBN
,/,
are/VBP
:/:
--/:
A/DT
restriction/NN
on/IN
the/DT
amount/NN
of/IN
real/JJ
estate/NN
one/CD
family/NN
can/MD
own/VB
,/,
to/TO
660/CD
square/NN
meters/NNS
in/IN
the/DT
nation/NN
's/POS
six/CD
largest/JJS
cities/NNS
,/,
but/CC
more/JJR
in/IN
smaller/JJR
cities/NNS
and/CC
rural/JJ
areas/NNS
./.
The/DT
government/NN
will/MD
penalize/VB
offenders/NNS
,/,
but/CC
wo/MD
n't/RB
confiscate/VB
property/NN
./.
--/:
A/DT
tax/NN
of/IN
between/IN
3/CD
%/NN
and/CC
6/CD
%/NN
on/IN
property/NN
holdings/NNS
that/WDT
exceed/VBP
the/DT
governmentset/VBN

ceiling/NN
./.
--/:
Taxes/NNS
of/IN
between/IN
15/CD
%/NN
and/CC
50/CD
%/NN
a/DT
year/NN
on/IN
``/``
excessive/JJ
''/''
profits/NNS
from/IN
the/DT
resale/NN
of/IN
property/NN
,/,
or/CC
the/DT
sale/NN
of/IN
idle/JJ
land/NN
to/TO
the/DT
government/NN
./.
The/DT
government/NN
defines/VBZ
excessive/JJ
profits/NNS
as/IN
those/DT
above/IN
the/DT
average/NN
realized/VBN
for/IN
other/JJ
similar-sized/JJ
properties/NNS
in/IN
an/DT
area/NN
./.
--/:
Grace/NN
periods/NNS
ranging/VBG
from/IN
two/CD
to/TO
five/CD
years/NNS
before/IN
the/DT
full/JJ
scope/NN
of/IN
the/DT
penalties/NNS
takes/VBZ
effect/NN
./.
The/DT
administration/NN
says/VBZ
the/DT
measures/NNS
would/MD
stem/VB
rampant/JJ
property/NN
speculation/NN
,/,
free/VB
more/JJR
land/NN
for/IN
the/DT
government/NN
's/POS
ambitious/JJ
housing-construction/NN
program/NN
,/,
designed/VBN
to/TO
build/VB
two/CD
million/CD
apartments/NNS
by/IN
1992/CD
--/:
and/CC
,/,
perhaps/RB
,/,
boost/VB
the/DT
popular/JJ
standing/NN
of/IN
President/NNP
Roh/NNP
./.
But/CC
opposition/NN
legislators/NNS
and/CC
others/NNS
calling/VBG
for/IN
help/NN
for/IN
South/NNP
Korea/NNP
's/POS
renters/NNS
say/VBP
the/DT
proposed/VBN
changes/NNS
do/VBP
n't/RB
go/VB
far/RB
enough/RB
to/TO
make/VB
it/PRP
possible/JJ
for/IN
ordinary/JJ
people/NNS
to/TO
buy/VB
a/DT
home/NN
./.
Some/DT
want/VBP
lower/JJR
limits/NNS
on/IN
house/NN
sizes/NNS
;/:
others/NNS
insist/VBP
on/IN
progressively/RB
higher/JJR
taxation/NN
for/IN
larger/JJR
homes/NNS
and/CC
lots/NNS
./.
The/DT
Citizens/NNPS
Coalition/NNP
for/IN
Economic/NNP
Justice/NNP
,/,
a/DT
public-interest/NN
group/NN
leading/VBG
the/DT
charge/NN
for/IN
radical/JJ
reform/NN
,/,
wants/VBZ
restrictions/NNS
on/IN
landholdings/NNS
,/,
high/JJ
taxation/NN
of/IN
capital/NN
gains/NNS
,/,
and/CC
drastic/RB
revamping/VBG
of/IN
the/DT
value-assessment/NN
system/NN
on/IN
which/WDT
property/NN
taxes/NNS
are/VBP
based/VBN
./.
But/CC
others/NNS
,/,
large/JJ
landowners/NNS
,/,
real-estate/NN
developers/NNS
and/CC
business/NN
leaders/NNS
,/,
say/VBP
the/DT
government/NN
's/POS
proposals/NNS
are/VBP
intolerable/JJ
./.
Led/VBN
by/IN
the/DT
Federation/NNP
of/IN
Korean/NNP
Industries/NNPS
,/,
the/DT
critics/NNS
are/VBP
lobbying/VBG
for/IN
the/DT
government/NN
to/TO
weaken/VB
its/PRP$
proposed/VBN
restrictions/NNS
and/CC
penalties/NNS
./.
Government/NN
officials/NNS
who/WP
are/VBP
urging/VBG
real-estate/NN
reforms/NNS
balk/VBP
at/IN
the/DT
arguments/NNS
of/IN
business/NN
leaders/NNS
and/CC
chafe/VBP
at/IN
their/PRP$
pressure/NN
./.
``/``
There/EX
is/VBZ
no/DT
violation/NN
of/IN
the/DT
capitalistic/JJ
principle/NN
of/IN
private/JJ
property/NN
in/IN
what/WP
we/PRP
are/VBP
doing/VBG
,/,
''/''
says/VBZ
Lee/NNP
Kyu/NNP
Hwang/NNP
,/,
director/NN
of/IN
the/DT
government/NN
's/POS
Land/NNP
Bureau/NNP
,/,
which/WDT
drafted/VBD
the/DT
bills/NNS
./.
But/CC
,/,
he/PRP
adds/VBZ
,/,
the/DT
constitution/NN
empowers/VBZ
the/DT
government/NN
to/TO
impose/VB
some/DT
controls/NNS
,/,
to/TO
mitigate/VB
the/DT
shortage/NN
of/IN
land/NN
./.
The/DT
land/NN
available/JJ
for/IN
housing/NN
construction/NN
stands/VBZ
at/IN
about/IN
46.2/CD
square/JJ
meters/NNS
a/DT
person/NN
--/:
18/CD
%/NN
lower/JJR
than/IN
in/IN
Taiwan/NNP
and/CC
only/RB
about/IN
half/PDT
that/DT
of/IN
Japan/NNP
./.
Mr./NNP
Lee/NNP
estimates/VBZ
that/IN
about/IN
10,000/CD
property/NN
speculators/NNS
are/VBP
operating/VBG
in/IN
South/NNP
Korea/NNP
./.
The/DT
chief/JJ
culprits/NNS
,/,
he/PRP
says/VBZ
,/,
are/VBP
big/JJ
companies/NNS
and/CC
business/NN
groups/NNS
that/WDT
buy/VBP
huge/JJ
amounts/NNS
of/IN
land/NN
``/``
not/RB
for/IN
their/PRP$
corporate/JJ
use/NN
,/,
but/CC
for/IN
resale/NN
at/IN
huge/JJ
profit/NN
./.
''/''
One/CD
research/NN
institute/NN
calculated/VBD
that/IN
as/RB
much/JJ
as/IN
67/CD
%/NN
of/IN
corporate-owned/JJ
land/NN
is/VBZ
held/VBN
by/IN
403/CD
companies/NNS
--/:
and/CC
that/IN
as/RB
little/JJ
as/IN
1.5/CD
%/NN
of/IN
that/WDT
is/VBZ
used/VBN
for/IN
business/NN
./.
The/DT
government/NN
's/POS
Office/NNP
of/IN
Bank/NNP
Supervision/NNP
and/CC
Examination/NNP
told/VBD
the/DT
National/NNP
Assembly/NNP
this/DT
month/NN
that/IN
in/IN
the/DT
first/JJ
half/NN
of/IN
1989/CD
,/,
the/DT
nation/NN
's/POS
30/CD
largest/JJS
business/NN
groups/NNS
bought/VBD
real/JJ
estate/NN
valued/VBN
at/IN
$/$
1.5/CD
billion/CD
./.
The/DT
Ministry/NNP
of/IN
Finance/NNP
,/,
as/IN
a/DT
result/NN
,/,
has/VBZ
proposed/VBN
a/DT
series/NN
of/IN
measures/NNS
that/WDT
would/MD
restrict/VB
business/NN
investment/NN
in/IN
real/JJ
estate/NN
even/RB
more/RBR
tightly/RB
than/IN
restrictions/NNS
aimed/VBN
at/IN
individuals/NNS
./.
Under/IN
those/DT
measures/NNS
,/,
financial/JJ
institutions/NNS
would/MD
be/VB
restricted/VBN
from/IN
owning/VBG
any/DT
more/JJR
real/JJ
estate/NN
than/IN
they/PRP
need/VBP
for/IN
their/PRP$
business/NN
operations/NNS
./.
Banks/NNS
,/,
investment/NN
and/CC
credit/NN
firms/NNS
would/MD
be/VB
permitted/VBN
to/TO
own/JJ
land/NN
equivalent/NN
in/IN
value/NN
to/TO
50/CD
%/NN
of/IN
their/PRP$
capital/NN
--/:
currently/RB
the/DT
proportion/NN
is/VBZ
75/CD
%/NN
./.
The/DT
maximum/JJ
allowable/JJ
property/NN
holdings/NNS
for/IN
insurance/NN
companies/NNS
would/MD
be/VB
reduced/VBN
to/TO
10/CD
%/NN
of/IN
their/PRP$
total/JJ
asset/NN
value/NN
,/,
down/RB
from/IN
15/CD
%/NN
currently/RB
./.
But/CC
Mrs./NNP
Park/NNP
acknowledges/VBZ
that/IN
even/RB
if/IN
the/DT
policies/NNS
work/VBP
to/TO
slow/VB
or/CC
stop/VB
speculation/NN
,/,
apartment/NN
prices/NNS
are/VBP
unlikely/JJ
to/TO
go/VB
down/RP
./.
At/IN
best/RBS
,/,
she/PRP
realizes/VBZ
,/,
they/PRP
will/MD
rise/VB
more/RBR
slowly/RB
--/:
more/RBR
slowly/RB
,/,
she/PRP
hopes/VBZ
,/,
than/IN
her/PRP$
family/NN
's/POS
income/NN
./.
CAMBREX/NNP
Corp./NNP
,/,
Bayonne/NNP
,/,
N.J./NNP
,/,
declared/VBD
its/PRP$
initial/JJ
quarterly/NN
of/IN
five/CD
cents/NNS
a/DT
share/NN
,/,
payable/JJ
Dec./NNP
1/CD
to/TO
stock/VB
of/IN
record/NN
Nov./NNP
10/CD
./.
The/DT
maker/NN
of/IN
specialty/NN
chemicals/NNS
has/VBZ
about/IN
5.9/CD
million/CD
shares/NNS
outstanding/JJ
./.
The/DT
company/NN
said/VBD
the/DT
move/NN
recognizes/VBZ
its/PRP$
strong/JJ
financial/JJ
position/NN
./.
Although/IN
profits/NNS
were/VBD
``/``
squeezed/VBN
''/''
in/IN
1989/CD
,/,
mainly/RB
as/IN
a/DT
result/NN
of/IN
higher/JJR
raw-material/NN
costs/NNS
,/,
the/DT
company/NN
said/VBD
it/PRP
is/VBZ
confident/JJ
about/IN
future/JJ
earnings/NNS
and/CC
cash/NN
flow/NN
for/IN
1990/CD
and/CC
beyond/IN
./.
In/IN
national/JJ
over-the-counter/JJ
trading/NN
yesterday/NN
,/,
Cambrex/NNP
shares/NNS
rose/VBD
50/CD
cents/NNS
to/TO
close/VB
at/IN
$/$
13/CD
a/DT
share/NN
./.
The/DT
Justice/NNP
Department/NNP
said/VBD
it/PRP
is/VBZ
seeking/VBG
to/TO
join/VB
a/DT
private/JJ
lawsuit/NN
challenging/VBG
a/DT
Pittsburgh/NNP
suburb/NN
's/POS
zoning/VBG
ordinance/NN
that/WDT
sharply/RB
restricts/VBZ
the/DT
locations/NNS
available/JJ
to/TO
group/VB
homes/NNS
for/IN
the/DT
handicapped/NNS
./.
This/DT
would/MD
be/VB
the/DT
department/NN
's/POS
first/JJ
suit/NN
challenging/VBG
a/DT
local/JJ
zoning/VBG
ordinance/NN
under/IN
1988/CD
amendments/NNS
to/TO
the/DT
Fair/NNP
Housing/NNP
Act/NNP
./.
Under/IN
those/DT
amendments/NNS
,/,
which/WDT
took/VBD
effect/NN
in/IN
March/NNP
of/IN
this/DT
year/NN
,/,
the/DT
federal/JJ
government/NN
can/MD
intervene/VB
in/IN
private/JJ
housing-discrimination/NN
lawsuits/NNS
./.
The/DT
ordinance/NN
,/,
in/IN
Moon/NNP
Township/NNP
,/,
prohibits/VBZ
locating/VBG
a/DT
group/NN
home/NN
for/IN
the/DT
handicapped/NNS
within/IN
a/DT
mile/NN
of/IN
another/DT
such/JJ
facility/NN
./.
In/IN
papers/NNS
filed/VBN
with/IN
the/DT
federal/JJ
district/NN
court/NN
in/IN
Pittsburgh/NNP
,/,
the/DT
Justice/NNP
Department/NNP
alleged/VBD
that/IN
the/DT
ordinance/NN
,/,
by/IN
limiting/VBG
the/DT
number/NN
of/IN
group/NN
homes/NNS
that/WDT
can/MD
be/VB
established/VBN
in/IN
the/DT
township/NN
,/,
makes/VBZ
housing/NN
unavailable/JJ
on/IN
account/NN
of/IN
handicap/NN
./.
The/DT
private/JJ
suit/NN
was/VBD
brought/VBN
by/IN
three/CD
mentally/RB
retarded/JJ
people/NNS
who/WP
live/VBP
in/IN
a/DT
group/NN
home/NN
in/IN
Moon/NNP
./.
Greg/NNP
Smith/NNP
,/,
Moon/NNP
Township/NNP
manager/NN
,/,
said/VBD
the/DT
ordinance/NN
is/VBZ
intended/VBN
to/TO
prevent/VB
the/DT
concentration/NN
of/IN
group/NN
homes/NNS
for/IN
the/DT
mentally/RB
retarded/JJ
from/IN
changing/VBG
``/``
the/DT
character/NN
and/CC
flavor/NN
of/IN
the/DT
neighborhood/NN
./.
''/''
He/PRP
said/VBD
the/DT
ordinance/NN
also/RB
will/MD
benefit/VB
the/DT
mentally/RB
retarded/JJ
./.
``/``
Our/PRP$
intent/NN
is/VBZ
to/TO
spread/VB
them/PRP
out/RP
''/''
to/TO
insure/VB
they/PRP
are/VBP
well/RB
integrated/JJ
into/IN
the/DT
community/NN
,/,
he/PRP
said/VBD
./.
Energetic/JJ
and/CC
concrete/JJ
action/NN
has/VBZ
been/VBN
taken/VBN
in/IN
Colombia/NNP
during/IN
the/DT
past/JJ
60/CD
days/NNS
against/IN
the/DT
mafiosi/NNS
of/IN
the/DT
drug/NN
trade/NN
,/,
but/CC
it/PRP
has/VBZ
not/RB
been/VBN
sufficiently/RB
effective/JJ
,/,
because/RB
,/,
unfortunately/RB
,/,
it/PRP
came/VBD
too/RB
late/JJ
./.
Ten/CD
years/NNS
ago/RB
,/,
the/DT
newspaper/NN
El/NNP
Espectador/NNP
,/,
of/IN
which/WDT
my/PRP$
brother/NN
Guillermo/NNP
was/VBD
editor/NN
,/,
began/VBD
warning/VBG
of/IN
the/DT
rise/NN
of/IN
the/DT
drug/NN
mafias/NNS
and/CC
of/IN
their/PRP$
leaders/NNS
'/POS
aspirations/NNS
to/TO
control/VB
Colombian/JJ
politics/NNS
,/,
especially/RB
the/DT
Congress/NNP
./.
Then/RB
,/,
when/WRB
it/PRP
would/MD
have/VB
been/VBN
easier/JJR
to/TO
resist/VB
them/PRP
,/,
nothing/NN
was/VBD
done/VBN
and/CC
my/PRP$
brother/NN
was/VBD
murdered/VBN
by/IN
the/DT
drug/NN
mafias/NNS
three/CD
years/NNS
ago/RB
./.
The/DT
most/RBS
ruthless/JJ
dictatorships/NNS
have/VBP
not/RB
censored/VBN
their/PRP$
press/NN
more/RBR
brutally/RB
than/IN
the/DT
drug/NN
mafias/NNS
censor/VBP
Colombia/NNP
's/POS
./.
The/DT
censorship/NN
is/VBZ
enforced/VBN
through/IN
terrorism/NN
and/CC
assassination/NN
./.
In/IN
the/DT
past/JJ
10/CD
years/NNS
about/IN
50/CD
journalists/NNS
have/VBP
been/VBN
silenced/VBN
forever/RB
,/,
murdered/VBN
./.
Within/IN
the/DT
past/JJ
two/CD
months/NNS
a/DT
bomb/NN
exploded/VBD
in/IN
the/DT
offices/NNS
of/IN
the/DT
El/NNP
Espectador/NNP
in/IN
Bogota/NNP
,/,
destroying/VBG
a/DT
major/JJ
part/NN
of/IN
its/PRP$
installations/NNS
and/CC
equipment/NN
./.
And/CC
only/RB
last/JJ
week/NN
the/DT
newspaper/NN
Vanguardia/NNP
Liberal/NNP
in/IN
the/DT
city/NN
of/IN
Bucaramanga/NNP
was/VBD
bombed/VBN
,/,
and/CC
its/PRP$
installations/NNS
destroyed/VBN
./.
Journalists/NNS
and/CC
their/PRP$
families/NNS
are/VBP
constantly/RB
threatened/VBN
as/IN
are/VBP
the/DT
newspaper/NN
distribution/NN
outlets/NNS
./.
Distribution/NN
centers/NNS
are/VBP
bombed/VBN
,/,
and/CC
advertisers/NNS
are/VBP
intimidated/VBN
./.
Censorship/NN
is/VBZ
imposed/VBN
by/IN
terrorism/NN
./.
If/IN
the/DT
Colombian/JJ
media/NNS
accept/VBP
this/DT
new/JJ
and/CC
hideous/JJ
censorship/NN
there/EX
is/VBZ
little/JJ
doubt/NN
that/IN
the/DT
drug/NN
mafia/NN
's/POS
terrorism/NN
someday/RB
will/MD
extend/VB
to/TO
all/PDT
the/DT
newspapers/NNS
published/VBN
in/IN
the/DT
free/JJ
world/NN
./.
The/DT
solidarity/NN
of/IN
the/DT
uncensored/JJ
media/NNS
world-wide/JJ
against/IN
drug/NN
terrorism/NN
is/VBZ
the/DT
only/JJ
way/NN
press/NN
freedom/NN
can/MD
survive/VB
./.
The/DT
American/JJ
people/NNS
and/CC
their/PRP$
government/NN
also/RB
woke/VBD
up/RB
too/RB
late/RB
to/TO
the/DT
menace/NN
drugs/NNS
posed/VBD
to/TO
the/DT
moral/JJ
structure/NN
of/IN
their/PRP$
country/NN
./.
Even/RB
now/RB
,/,
the/DT
American/JJ
attack/NN
upon/IN
this/DT
tremendous/JJ
problem/NN
is/VBZ
timid/JJ
in/IN
relation/NN
to/TO
the/DT
magnitude/NN
of/IN
the/DT
threat/NN
./.
I/PRP
can/MD
attest/VB
that/IN
a/DT
recent/JJ
Colombian/JJ
visitor/NN
to/TO
the/DT
U.S./NNP
was/VBD
offered/VBN
drugs/NNS
three/CD
times/NNS
in/IN
the/DT
few/JJ
blocks/NNS
'/POS
walk/NN
between/IN
Grand/NNP
Central/NNP
Terminal/NNP
and/CC
the/DT
Waldorf/NNP
Astoria/NNP
Hotel/NNP
in/IN
midtown/JJ
Manhattan/NNP
./.
Colombia/NNP
alone/RB
--/:
its/PRP$
government/NN
,/,
its/PRP$
people/NNS
,/,
its/PRP$
newspapers/NNS
--/:
does/VBZ
not/RB
have/VB
the/DT
capacity/NN
to/TO
fight/VB
this/DT
battle/NN
successfully/RB
./.
All/DT
drug-consuming/JJ
countries/NNS
must/MD
jointly/RB
decide/VB
to/TO
combat/VB
and/CC
punish/VB
the/DT
consumers/NNS
and/CC
distributors/NNS
of/IN
drugs/NNS
./.
The/DT
U.S./NNP
,/,
as/IN
the/DT
major/JJ
drug/NN
consumer/NN
,/,
should/MD
lead/VB
this/DT
joint/JJ
effort/NN
./.
Reduction/NN
,/,
if/IN
not/RB
the/DT
total/JJ
cessation/NN
,/,
of/IN
drug/NN
consumption/NN
is/VBZ
the/DT
requirement/NN
for/IN
victory/NN
./.
Much/RB
is/VBZ
being/VBG
done/VBN
in/IN
Colombia/NNP
to/TO
fight/VB
the/DT
drug/NN
cartel/NN
mafia/NN
./.
Luxurious/JJ
homes/NNS
and/CC
ranches/NNS
have/VBP
been/VBN
raided/VBN
by/IN
the/DT
military/JJ
authorities/NNS
,/,
and/CC
sophisticated/JJ
and/CC
powerful/JJ
communications/NNS
equipment/NN
have/VBP
been/VBN
seized/VBN
./.
More/JJR
than/IN
300/CD
planes/NNS
and/CC
helicopters/NNS
have/VBP
been/VBN
impounded/VBN
at/IN
airports/NNS
,/,
and/CC
a/DT
large/JJ
number/NN
of/IN
vehicles/NNS
and/CC
launches/NNS
has/VBZ
been/VBN
confiscated/VBN
./.
The/DT
military/NN
has/VBZ
also/RB
captured/VBN
enormous/JJ
arsenals/NNS
of/IN
powerful/JJ
and/CC
sophisticated/JJ
weapons/NNS
,/,
explosives/NNS
and/CC
other/JJ
war-like/JJ
materiel/NN
./.
Much/JJ
has/VBZ
been/VBN
accomplished/VBN
and/CC
public/JJ
opinion/NN
decisively/RB
supports/VBZ
the/DT
government/NN
and/CC
the/DT
army/NN
--/:
but/CC
,/,
on/IN
the/DT
other/JJ
hand/NN
,/,
none/NN
of/IN
the/DT
key/JJ
drug/NN
barons/NNS
have/VBP
been/VBN
captured/VBN
./.
There/EX
has/VBZ
been/VBN
a/DT
lot/NN
of/IN
talk/NN
that/IN
a/DT
large/JJ
portion/NN
of/IN
the/DT
Colombian/JJ
economy/NN
is/VBZ
sustained/VBN
by/IN
the/DT
laundering/NN
of/IN
drug/NN
money/NN
./.
In/IN
my/PRP$
opinion/NN
,/,
this/DT
is/VBZ
not/RB
true/JJ
./.
Laundered/VBN
drug/NN
money/NN
has/VBZ
served/VBN
only/RB
to/TO
increase/VB
,/,
unrealistically/RB
,/,
the/DT
price/NN
of/IN
real/JJ
estate/NN
,/,
creating/VBG
serious/JJ
problems/NNS
for/IN
low-income/JJ
people/NNS
who/WP
aspire/VBP
to/TO
own/VB
their/PRP$
own/JJ
homes/NNS
./.
Drug/NN
money/NN
has/VBZ
also/RB
gone/VBN
to/TO
buy/VB
expensive/JJ
cars/NNS
,/,
airplanes/NNS
,/,
launches/NNS
and/CC
nightclubs/NNS
where/WRB
drugs/NNS
are/VBP
consumed/VBN
./.
But/CC
most/RBS
of/IN
the/DT
drug/NN
money/NN
is/VBZ
kept/VBN
in/IN
investments/NNS
and/CC
in/IN
financial/JJ
institutions/NNS
outside/IN
Colombia/NNP
./.
In/IN
fact/NN
,/,
the/DT
cooperation/NN
of/IN
those/DT
financial/JJ
institutions/NNS
is/VBZ
essential/JJ
to/TO
the/DT
success/NN
of/IN
the/DT
drug/NN
battle/NN
./.
What/WP
is/VBZ
of/IN
much/RB
more/JJR
importance/NN
to/TO
the/DT
Colombian/JJ
economy/NN
than/IN
the/DT
supposed/VBN
benefits/NNS
of/IN
laundered/VBN
drug/NN
money/NN
is/VBZ
higher/JJR
prices/NNS
for/IN
Colombia/NNP
's/POS
legitimate/JJ
products/NNS
./.
The/DT
price/NN
of/IN
coffee/NN
has/VBZ
gone/VBN
down/RB
almost/RB
45/CD
%/NN
since/IN
the/DT
beginning/NN
of/IN
the/DT
year/NN
,/,
to/TO
the/DT
lowest/JJS
level/NN
inflation/NN
the/DT
Great/NNP
Depression/NNP
./.
Market/NN
conditions/NNS
point/VBP
to/TO
even/VB
lower/JJR
prices/NNS
next/IN
year/NN
./.
The/DT
27-year-old/JJ
coffee/NN
cartel/NN
had/VBD
to/TO
be/VB
formally/RB
dissolved/VBN
this/DT
summer/NN
./.
As/IN
a/DT
result/NN
,/,
Colombia/NNP
will/MD
earn/VB
$/$
500/CD
million/CD
less/JJR
from/IN
its/PRP$
coffee/NN
this/DT
year/NN
than/IN
last/JJ
./.
Our/PRP$
coffee/NN
growers/NNS
face/VBP
reductions/NNS
in/IN
their/PRP$
income/NN
,/,
and/CC
this/DT
tempts/VBZ
them/PRP
to/TO
contemplate/VB
substituting/VBG
coca/NN
crops/NNS
for/IN
coffee/NN
./.
U.S./NNP
interests/NNS
occasionally/RB
try/VBP
to/TO
impose/VB
barriers/NNS
to/TO
the/DT
import/NN
of/IN
another/DT
important/JJ
Colombian/JJ
export/NN
--/:
cut/JJ
flowers/NNS
--/:
into/IN
the/DT
American/JJ
market/NN
./.
A/DT
just/JJ
price/NN
and/CC
an/DT
open/JJ
market/NN
for/IN
what/WP
Colombian/JJ
produces/VBZ
and/CC
exports/VBZ
should/MD
be/VB
the/DT
policy/NN
of/IN
the/DT
U.S/NNP
./.
I/PRP
take/VBP
advantage/NN
of/IN
this/DT
opportunity/NN
given/VBN
to/TO
me/PRP
by/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
to/TO
make/VB
a/DT
plea/NN
to/TO
the/DT
millions/NNS
of/IN
readers/NNS
of/IN
this/DT
newspaper/NN
,/,
to/TO
become/VB
soldiers/NNS
dedicated/JJ
to/TO
the/DT
fight/NN
against/IN
the/DT
use/NN
of/IN
drugs/NNS
./.
Each/DT
gram/NN
of/IN
cocaine/NN
consumed/VBN
is/VBZ
a/DT
deadly/JJ
bullet/NN
against/IN
those/DT
in/IN
our/PRP$
country/NN
and/CC
in/IN
the/DT
rest/NN
of/IN
the/DT
world/NN
who/WP
fight/VBP
this/DT
terrible/JJ
scourge/NN
./.
A/DT
crusade/NN
of/IN
NO/UH
to/TO
the/DT
consumption/NN
of/IN
drugs/NNS
is/VBZ
imperative/JJ
./.
Mr./NNP
Cano/NNP
is/VBZ
president/NN
of/IN
El/NNP
Espectador/NNP
,/,
a/DT
newspaper/NN
founded/VBN
by/IN
his/PRP$
grandfather/NN
./.
It/PRP
has/VBZ
more/JJR
drug/NN
users/NNS
than/IN
Boston/NNP
has/VBZ
people/NNS
./.
Thirty-four/CD
thousand/CD
of/IN
its/PRP$
children/NNS
live/VBP
in/IN
foster/JJ
homes/NNS
,/,
while/IN
50,000/CD
residents/NNS
have/VBP
no/DT
homes/NNS
at/IN
all/DT
./.
Its/PRP$
tax/NN
base/NN
is/VBZ
shrinking/VBG
,/,
a/DT
$/$
1/CD
billion/CD
budget/NN
deficit/NN
looms/VBZ
,/,
and/CC
the/DT
city/NN
faces/VBZ
contract/NN
negotiations/NNS
with/IN
all/DT
major/JJ
municipal/JJ
unions/NNS
next/IN
year/NN
./.
This/DT
is/VBZ
New/NNP
York/NNP
City/NNP
./.
When/WRB
the/DT
dust/NN
and/CC
dirt/NN
settle/VBP
in/IN
an/DT
extra-nasty/JJ
mayoral/JJ
race/NN
,/,
the/DT
man/NN
most/RBS
likely/JJ
to/TO
gain/VB
custody/NN
of/IN
all/PDT
this/DT
is/VBZ
a/DT
career/NN
politician/NN
named/VBN
David/NNP
Dinkins/NNP
./.
Running/VBG
the/DT
nation/NN
's/POS
largest/JJS
and/CC
most/RBS
ornery/JJ
city/NN
may/MD
be/VB
no/DT
treat/NN
,/,
but/CC
at/IN
least/JJS
Mr./NNP
Dinkins/NNP
knows/VBZ
what/WP
to/TO
expect/VB
from/IN
it/PRP
./.
As/IN
the/DT
campaign/NN
hits/VBZ
the/DT
home/NN
stretch/NN
,/,
however/RB
,/,
voters/NNS
still/RB
have/VBP
very/RB
little/JJ
idea/NN
what/WP
they/PRP
can/MD
expect/VB
from/IN
him/PRP
./.
After/IN
25/CD
years/NNS
in/IN
city/NN
politics/NNS
,/,
David/NNP
Dinkins/NNP
remains/VBZ
an/DT
enigma/NN
./.
The/DT
soft-spoken/JJ
,/,
silver-haired/JJ
Manhattan/NNP
borough/NN
president/NN
--/:
the/DT
first/JJ
black/JJ
man/NN
to/TO
win/VB
the/DT
Democratic/JJ
nomination/NN
for/IN
mayor/NN
here/RB
--/:
does/VBZ
n't/RB
have/VB
a/DT
single/JJ
prominent/JJ
political/JJ
enemy/NN
./.
While/IN
he/PRP
is/VBZ
widely/RB
described/VBN
as/IN
a/DT
man/NN
with/IN
deep/JJ
convictions/NNS
,/,
he/PRP
has/VBZ
few/JJ
major/JJ
political/JJ
programs/NNS
that/IN
he/PRP
can/MD
call/VB
his/PRP$
own/JJ
./.
Asked/VBN
about/IN
his/PRP$
greatest/JJS
achievement/NN
in/IN
public/JJ
life/NN
,/,
he/PRP
first/RB
speaks/VBZ
about/IN
the/DT
quality/NN
of/IN
his/PRP$
staff/NN
./.
Now/RB
,/,
as/IN
election/NN
day/NN
nears/VBZ
,/,
even/RB
some/DT
supporters/NNS
wonder/VBP
what/WP
he/PRP
will/MD
do/VB
if/IN
he/PRP
wins/VBZ
the/DT
mayoralty/NN
on/IN
Nov./NNP
7/CD
./.
They/PRP
wonder/VBP
whether/IN
he/PRP
can/MD
be/VB
firm/JJ
with/IN
his/PRP$
longtime/JJ
allies/NNS
,/,
including/VBG
union/NN
leaders/NNS
and/CC
political/JJ
cronies/NNS
who/WP
may/MD
seek/VB
a/DT
place/NN
at/IN
the/DT
trough/NN
./.
They/PRP
wonder/VBP
whether/IN
he/PRP
has/VBZ
the/DT
economic/JJ
know-how/NN
to/TO
steer/VB
the/DT
city/NN
through/IN
a/DT
possible/JJ
fiscal/JJ
crisis/NN
,/,
and/CC
they/PRP
wonder/VBP
who/WP
will/MD
be/VB
advising/VBG
him/PRP
./.
Will/MD
he/PRP
,/,
if/IN
he/PRP
wins/VBZ
,/,
be/VB
in/IN
the/DT
thrall/NN
of/IN
the/DT
most/RBS
liberal/JJ
of/IN
his/PRP$
allies/NNS
,/,
who/WP
advocate/VBP
such/JJ
policies/NNS
as/IN
rent/NN
control/NN
for/IN
commercial/JJ
buildings/NNS
,/,
or/CC
will/MD
he/PRP
tilt/VB
toward/IN
the/DT
real-estate/NN
interests/NNS
that/WDT
have/VBP
funneled/VBN
money/NN
into/IN
his/PRP$
campaign/NN
?/.
After/IN
his/PRP$
decisive/JJ
primary/NN
victory/NN
over/IN
Mayor/NNP
Edward/NNP
I./NN
Koch/NNP
in/IN
September/NNP
,/,
Mr./NNP
Dinkins/NNP
coasted/VBD
,/,
until/IN
recently/RB
,/,
on/IN
a/DT
quite-comfortable/JJ
lead/NN
over/IN
his/PRP$
Republican/JJ
opponent/NN
,/,
Rudolph/NNP
Giuliani/NNP
,/,
the/DT
former/JJ
crime/NN
buster/NN
who/WP
has/VBZ
proved/VBN
a/DT
something/NN
of/IN
a/DT
bust/NN
as/IN
a/DT
candidate/NN
./.
But/CC
Mr./NNP
Dinkins/NNP
has/VBZ
stumbled/VBN
in/IN
the/DT
past/JJ
two/CD
weeks/NNS
over/IN
his/PRP$
campaign/NN
's/POS
payments/NNS
to/TO
a/DT
black/JJ
activist/NN
who/WP
is/VBZ
a/DT
convicted/VBN
kidnapper/NN
,/,
and/CC
over/IN
his/PRP$
handling/NN
of/IN
a/DT
stock/NN
sale/NN
to/TO
his/PRP$
son/NN
./.
Polls/NNS
also/RB
have/VBP
recorded/VBN
some/DT
slippage/NN
in/IN
Mr./NNP
Dinkins/NNP
's/POS
support/NN
among/IN
Jewish/JJ
voters/NNS
,/,
and/CC
citywide/JJ
projections/NNS
now/RB
put/VB
his/PRP$
lead/NN
at/IN
between/IN
four/CD
and/CC
20/CD
percentage/NN
points/NNS
./.
In/IN
an/DT
interview/NN
with/IN
reporters/NNS
and/CC
editors/NNS
of/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
,/,
Mr./NNP
Dinkins/NNP
appears/VBZ
quite/RB
confident/JJ
of/IN
victory/NN
and/CC
of/IN
his/PRP$
ability/NN
to/TO
handle/VB
the/DT
mayoralty/NN
./.
``/``
A/DT
lot/NN
of/IN
people/NNS
think/VBP
I/PRP
will/MD
give/VB
away/RB
the/DT
store/NN
,/,
but/CC
I/PRP
can/MD
assure/VB
you/PRP
I/PRP
will/MD
not/RB
,/,
''/''
he/PRP
says/VBZ
./.
``/``
I/PRP
am/VBP
aware/JJ
we/PRP
have/VBP
real/JJ
budgetary/JJ
problems/NNS
./.
''/''
The/DT
city/NN
is/VBZ
full/JJ
of/IN
aging/VBG
bridges/NNS
,/,
water/NN
mains/NNS
and/CC
roadways/NNS
that/WDT
are/VBP
in/IN
need/NN
of/IN
billions/NNS
of/IN
dollars/NNS
worth/JJ
of/IN
repair/NN
./.
Renewed/VBN
efforts/NNS
to/TO
fight/VB
drugs/NNS
and/CC
crime/NN
will/MD
be/VB
costly/JJ
./.
But/CC
city/NN
officials/NNS
say/VBP
tax/NN
revenues/NNS
are/VBP
lagging/JJ
./.
And/CC
after/IN
a/DT
decade/NN
of/IN
explosive/JJ
job/NN
growth/NN
on/IN
Wall/NNP
Street/NNP
,/,
a/DT
period/NN
of/IN
contraction/NN
is/VBZ
under/IN
way/NN
./.
Mr./NNP
Koch/NNP
already/RB
has/VBZ
announced/VBN
he/PRP
will/MD
drop/VB
3,200/CD
jobs/NNS
from/IN
the/DT
city/NN
payroll/NN
,/,
but/CC
that/DT
wo/MD
n't/RB
be/VB
enough/RB
./.
New/NNP
York/NNP
State/NNP
Comptroller/NNP
Edward/NNP
Regan/NNP
predicts/VBZ
a/DT
$/$
1.3/CD
billion/CD
budget/NN
gap/NN
for/IN
the/DT
city/NN
's/POS
next/JJ
fiscal/JJ
year/NN
,/,
a/DT
gap/NN
that/WDT
could/MD
grow/VB
if/IN
there/EX
is/VBZ
a/DT
recession/NN
./.
If/IN
elected/VBN
,/,
Mr./NNP
Dinkins/NNP
will/MD
probably/RB
have/VB
no/DT
choice/NN
but/CC
to/TO
raise/VB
taxes/NNS
on/IN
overburdened/JJ
businesses/NNS
or/CC
cut/VB
spending/NN
in/IN
already/RB
under-serviced/JJ
neighborhoods/NNS
./.
``/``
He/PRP
is/VBZ
going/VBG
to/TO
face/VB
a/DT
mess/NN
,/,
''/''
says/VBZ
City/NNP
Council/NNP
President/NNP
Andrew/NNP
Stein/NNP
./.
``/``
His/PRP$
supporters/NNS
are/VBP
not/RB
venal/JJ
,/,
but/CC
their/PRP$
solution/NN
to/TO
everything/NN
will/MD
be/VB
to/TO
spend/VB
more/JJR
money/NN
,/,
and/CC
he/PRP
wo/MD
n't/RB
have/VB
any/DT
money/NN
./.
''/''
By/RB
and/CC
large/RB
,/,
Mr./NNP
Dinkins/NNP
has/VBZ
finessed/VBN
the/DT
touchy/JJ
question/NN
of/IN
whose/WP$
ox/NN
he/PRP
would/MD
gore/VB
./.
Instead/RB
of/IN
focusing/VBG
on/IN
the/DT
financial/JJ
future/NN
,/,
Mr./NNP
Dinkins/NNP
has/VBZ
sold/VBN
himself/PRP
as/IN
a/DT
unifier/NN
for/IN
a/DT
city/NN
recently/RB
touched/VBN
by/IN
racial/JJ
violence/NN
and/CC
as/IN
a/DT
soothing/JJ
antidote/NN
to/TO
12/CD
years/NNS
of/IN
commotion/NN
generated/VBN
by/IN
Mayor/NNP
Koch/NNP
./.
``/``
The/DT
thing/NN
about/IN
the/DT
Dinkins/NNP
candidacy/NN
is/VBZ
that/IN
it/PRP
offers/VBZ
hope/NN
to/TO
a/DT
broad/JJ
range/NN
of/IN
people/NNS
,/,
''/''
says/VBZ
Meyer/NNP
Frucher/NNP
,/,
a/DT
real-estate/NN
executive/NN
and/CC
former/JJ
aide/NN
to/TO
Gov./NNP
Mario/NNP
Cuomo/NNP
./.
``/``
It/PRP
is/VBZ
a/DT
feel-good/JJ
candidacy/NN
./.
''/''
No/DT
doubt/NN
,/,
Mr./NNP
Dinkins/NNP
has/VBZ
been/VBN
a/DT
calming/JJ
influence/NN
./.
He/PRP
is/VBZ
an/DT
avuncular/JJ
figure/NN
who/WP
remembers/VBZ
the/DT
birthdays/NNS
of/IN
colleagues/NNS
'/POS
children/NNS
,/,
opens/VBZ
doors/NNS
for/IN
women/NNS
,/,
and/CC
almost/RB
never/RB
has/VBZ
a/DT
bad/JJ
word/NN
to/TO
say/VB
about/IN
anybody/NN
./.
More/RBR
important/JJ
,/,
he/PRP
emerged/VBD
as/IN
a/DT
peacemaker/NN
last/JJ
summer/NN
after/IN
the/DT
Central/NNP
Park/NNP
rape/NN
of/IN
a/DT
white/JJ
jogger/NN
--/:
in/IN
which/WDT
a/DT
group/NN
of/IN
Harlem/NNP
teens/NNS
was/VBD
charged/VBN
--/:
and/CC
the/DT
racial/JJ
murder/NN
of/IN
a/DT
black/JJ
teen-ager/NN
in/IN
the/DT
white/JJ
Brooklyn/NNP
neighborhood/NN
of/IN
Bensonhurst/NNP
./.
Rather/RB
than/IN
scaring/VBG
off/RP
white/JJ
voters/NNS
,/,
as/IN
many/JJ
predicted/VBD
he/PRP
would/MD
,/,
Mr./NNP
Dinkins/NNP
attracted/VBD
many/JJ
whites/NNS
precisely/RB
because/IN
of/IN
his/PRP$
reputation/NN
for/IN
having/VBG
a/DT
cool/JJ
head/NN
./.
cool/JJ
is/VBZ
a/DT
Dinkins/NNP
priority/NN
:/:
On/IN
humid/JJ
days/NNS
this/DT
summer/NN
,/,
he/PRP
was/VBD
known/VBN
to/TO
change/VB
his/PRP$
double-breasted/JJ
suits/NNS
as/RB
many/JJ
as/IN
four/CD
times/NNS
a/DT
day/NN
./.
But/CC
even/RB
in/IN
his/PRP$
front-runner/NN
campaign/NN
,/,
he/PRP
has/VBZ
shown/VBN
signs/NNS
of/IN
the/DT
indecisiveness/NN
and/CC
confusion/NN
that/IN
some/DT
say/VBP
has/VBZ
plagued/VBN
his/PRP$
tenure/NN
as/IN
Manhattan/NNP
borough/NN
president/NN
--/:
and/CC
might/MD
hinder/VB
him/PRP
as/IN
mayor/NN
./.
Over/IN
the/DT
last/JJ
few/JJ
weeks/NNS
,/,
he/PRP
has/VBZ
frittered/VBN
away/RB
roughly/RB
half/NN
of/IN
what/WP
was/VBD
once/RB
a/DT
33-point/JJ
lead/NN
in/IN
the/DT
polls/NNS
over/IN
Mr./NNP
Giuliani/NNP
./.
A/DT
story/NN
about/IN
how/WRB
he/PRP
mishandled/VBD
the/DT
sale/NN
to/TO
his/PRP$
son/NN
of/IN
his/PRP$
stock/NN
in/IN
a/DT
media/NNS
company/NN
controlled/VBN
by/IN
his/PRP$
political/JJ
patron/NN
Percy/NNP
Sutton/NNP
was/VBD
allowed/VBN
to/TO
fester/VB
a/DT
full/JJ
week/NN
before/IN
Mr./NNP
Dinkins/NNP
faced/VBD
the/DT
media/NNS
./.
He/PRP
has/VBZ
canceled/VBN
numerous/JJ
campaign/NN
appointments/NNS
and/CC
was/VBD
largely/RB
inaccessible/JJ
to/TO
the/DT
media/NNS
until/IN
the/DT
stock/NN
story/NN
broke/VBD
./.
His/PRP$
campaign/NN
was/VBD
caught/VBN
flat-footed/RB
amid/IN
allegations/NNS
it/PRP
paid/VBD
almost/RB
$/$
10,000/CD
for/IN
what/WP
it/PRP
said/VBD
was/VBD
a/DT
``/``
get-out-the-vote/JJ
''/''
effort/NN
by/IN
black/JJ
activist/NN
Sonny/NNP
Carson/NNP
,/,
a/DT
convicted/VBN
kidnapper/NN
who/WP
later/RB
said/VBD
publicly/RB
that/IN
he/PRP
is/VBZ
``/``
anti-white/JJ
./.
''/''
Critics/NNS
have/VBP
said/VBN
the/DT
payment/NN
looked/VBD
like/IN
an/DT
attempt/NN
by/IN
the/DT
Dinkins/NNP
camp/NN
to/TO
get/VB
Mr./NNP
Carson/NNP
to/TO
stop/VB
leading/VBG
confrontational/JJ
demonstrations/NNS
protesting/VBG
the/DT
Bensonhurst/NNP
murder/NN
--/:
protests/VBZ
the/DT
campaign/NN
may/MD
have/VB
feared/VBN
could/MD
cause/VB
some/DT
white/JJ
voters/NNS
to/TO
turn/VB
from/IN
a/DT
black/JJ
candidate/NN
./.
Mr./NNP
Dinkins/NNP
also/RB
has/VBZ
failed/VBN
to/TO
allay/VB
Jewish/JJ
voters/NNS
'/POS
fears/NNS
about/IN
his/PRP$
association/NN
with/IN
the/DT
Rev./NNP
Jesse/NNP
Jackson/NNP
,/,
despite/IN
the/DT
fact/NN
that/IN
few/JJ
local/JJ
non-Jewish/JJ
politicians/NNS
have/VBP
been/VBN
as/RB
vocal/NN
for/IN
Jewish/JJ
causes/NNS
in/IN
the/DT
past/JJ
20/CD
years/NNS
as/IN
Mr./NNP
Dinkins/NNP
has/VBZ
./.
These/DT
campaign/NN
problems/NNS
have/VBP
echoed/VBN
difficulties/NNS
Mr./NNP
Dinkins/NNP
has/VBZ
run/VBN
into/IN
before/RB
./.
A/DT
former/JJ
U.S./NNP
Marine/NNP
,/,
Mr./NNP
Dinkins/NNP
got/VBD
off/RB
to/TO
a/DT
quick/JJ
start/NN
in/IN
politics/NNS
,/,
joining/VBG
a/DT
local/JJ
Democratic/JJ
political/JJ
club/NN
in/IN
the/DT
1950s/NNS
,/,
linking/VBG
up/RB
with/IN
black/JJ
urban/JJ
leaders/NNS
such/JJ
as/IN
Charles/NNP
Rangel/NNP
,/,
Basil/NNP
Paterson/NNP
and/CC
Mr./NNP
Sutton/NNP
,/,
and/CC
getting/VBG
himself/PRP
elected/VBN
to/TO
the/DT
state/NN
assembly/NN
in/IN
1965/CD
./.
But/CC
his/PRP$
chance/NN
to/TO
become/VB
deputy/JJ
mayor/NN
under/IN
Mayor/NNP
Abraham/NNP
Beame/NNP
,/,
a/DT
plan/NN
boosted/VBN
by/IN
Mr./NNP
Sutton/NNP
,/,
was/VBD
squandered/VBN
because/RB
of/IN
Mr./NNP
Dinkins/NNP
's/POS
failure/NN
--/:
still/RB
largely/RB
unexplained/JJ
--/:
to/TO
file/VB
income/NN
tax/NN
returns/NNS
for/IN
four/CD
years/NNS
running/VBG
./.
``/``
I/PRP
always/RB
thought/VBD
of/IN
this/DT
as/IN
a/DT
thing/NN
that/WDT
could/MD
always/RB
be/VB
done/VBN
tomorrow/NN
,/,
''/''
he/PRP
said/VBD
at/IN
the/DT
time/NN
./.
Later/RB
,/,
Mr./NNP
Dinkins/NNP
became/VBD
more/RBR
deeply/RB
indebted/JJ
to/TO
Mr./NNP
Sutton/NNP
and/CC
other/JJ
city/NN
pols/NNS
,/,
including/VBG
then-City/JJ
Council/NNP
President/NNP
Paul/NNP
O'Dwyer/NNP
,/,
when/WRB
they/PRP
helped/VBD
him/PRP
get/VB
appointed/VBN
city/NN
clerk/NN
,/,
a/DT
largely/RB
ceremonial/JJ
post/NN
responsible/JJ
for/IN
the/DT
city/NN
's/POS
marriage/NN
bureau/NN
,/,
among/IN
other/JJ
things/NNS
./.
Mr./NNP
O'Dwyer/NNP
is/VBZ
now/RB
one/CD
of/IN
the/DT
lawyers/NNS
for/IN
Mr./NNP
Sutton/NNP
's/POS
media/NNS
company/NN
./.
The/DT
debt/NN
rose/VBD
further/RBR
in/IN
1977/CD
when/WRB
Mr./NNP
Sutton/NNP
resigned/VBD
his/PRP$
position/NN
as/IN
Manhattan/NNP
borough/NN
president/NN
to/TO
run/VB
for/IN
mayor/NN
./.
Mr./NNP
Sutton/NNP
recalls/VBZ
:/:
``/``
When/WRB
I/PRP
left/VBD
,/,
I/PRP
sat/VBD
down/RB
with/IN
Charlie/NNP
Rangel/NNP
Basil/NNP
Paterson/NNP
David/NNP
,/,
and/CC
David/NNP
said/VBD
,/,
`/``
Who/WP
will/MD
run/VB
for/IN
borough/NN
president/NN
?/.
'/''
And/CC
I/PRP
said/VBD
,/,
`/``
You/PRP
will/MD
./.
'/''
''/''
David/NNP
Garth/NNP
,/,
Mayor/NNP
Koch/NNP
's/POS
longtime/JJ
media/NNS
adviser/NN
,/,
says/VBZ
of/IN
Mr./NNP
Dinkins/NNP
,/,
``/``
He/PRP
really/RB
is/VBZ
the/DT
personification/NN
of/IN
the/DT
patronage/NN
system/NN
./.
But/CC
the/DT
guy/NN
is/VBZ
so/RB
personally/RB
decent/JJ
,/,
people/NNS
tend/VBP
to/TO
forget/VB
that/DT
./.
''/''
Mr./NNP
Dinkins/NNP
lost/VBD
twice/RB
by/IN
wide/JJ
margins/NNS
before/IN
finally/RB
getting/VBG
elected/VBN
borough/NN
president/NN
in/IN
1985/CD
./.
But/CC
by/IN
most/JJS
accounts/NNS
,/,
he/PRP
made/VBD
little/RB
of/IN
the/DT
post/NN
and/CC
was/VBD
best/RBS
known/JJ
among/IN
city/NN
politicians/NNS
for/IN
his/PRP$
problems/NNS
making/VBG
up/RP
his/PRP$
mind/NN
on/IN
matters/NNS
before/IN
the/DT
city/NN
's/POS
Board/NNP
of/IN
Estimate/NNP
,/,
the/DT
body/NN
that/WDT
votes/VBZ
on/IN
crucial/JJ
budget/NN
and/CC
land-use/NN
matters/NNS
./.
Colleagues/NNS
today/NN
recall/VBP
with/IN
some/DT
humor/NN
how/WRB
meetings/NNS
would/MD
crawl/VB
into/IN
the/DT
early/JJ
morning/NN
hours/NNS
as/IN
Mr./NNP
Dinkins/NNP
would/MD
march/VB
his/PRP$
staff/NN
out/IN
of/IN
board/NN
meetings/NNS
and/CC
into/IN
his/PRP$
private/JJ
office/NN
to/TO
discuss/VB
,/,
en/FW
masse/FW
,/,
certain/JJ
controversial/JJ
proposals/NNS
./.
``/``
He/PRP
taught/VBD
me/PRP
how/WRB
to/TO
drink/VB
herbal/JJ
tea/NN
instead/RB
of/IN
coffee/NN
at/IN
3/CD
a.m./RB
,/,
I/PRP
'll/MD
give/VB
him/PRP
that/DT
,/,
''/''
says/VBZ
Deputy/NNP
Mayor/NNP
Robert/NNP
Esnard/NNP
./.
Often/RB
,/,
Mr./NNP
Dinkins/NNP
's/POS
procrastination/NN
prevented/VBD
him/PRP
from/IN
having/VBG
a/DT
say/NN
in/IN
the/DT
way/NN
things/NNS
turned/VBD
out/RB
,/,
critics/NNS
claim/VBP
./.
On/IN
the/DT
campaign/NN
stump/NN
,/,
he/PRP
often/RB
points/VBZ
out/RB
that/IN
he/PRP
was/VBD
the/DT
only/JJ
Board/NNP
of/IN
Estimate/NNP
member/NN
to/TO
vote/VB
against/IN
a/DT
controversial/JJ
real-estate/NN
project/NN
at/IN
Manhattan/NNP
's/POS
Columbus/NNP
Circle/NNP
./.
But/CC
board/NN
members/NNS
say/VBP
he/PRP
took/VBD
so/RB
long/JJ
to/TO
decide/VB
how/WRB
to/TO
vote/VB
that/IN
by/IN
the/DT
time/NN
he/PRP
decided/VBD
,/,
it/PRP
was/VBD
too/RB
late/JJ
to/TO
try/VB
to/TO
draw/VB
other/JJ
members/NNS
to/TO
his/PRP$
position/NN
./.
Says/VBZ
one/CD
city/NN
official/NN
:/:
``/``
Everybody/NN
else/RB
had/VBD
brought/VBN
in/IN
the/DT
wagons/NNS
and/CC
made/VBN
their/PRP$
deal/NN
./.
He/PRP
would/MD
have/VB
got/VBN
a/DT
lot/NN
more/JJR
done/VBN
if/IN
he/PRP
made/VBD
up/RP
his/PRP$
mind/NN
faster/RBR
./.
''/''
One/CD
Board/NN
member/NN
,/,
Bronx/NNP
Borough/NNP
President/NNP
Ferdinand/NNP
Ferrer/NNP
,/,
was/VBD
said/VBN
to/TO
be/VB
so/RB
impatient/JJ
with/IN
Mr./NNP
Dinkins/NNP
's/POS
behavior/NN
at/IN
many/JJ
meetings/NNS
that/IN
he/PRP
withheld/VBD
his/PRP$
support/NN
for/IN
Mr./NNP
Dinkins/NNP
's/POS
mayoral/JJ
effort/NN
until/IN
late/JJ
in/IN
the/DT
primary/JJ
campaign/NN
./.
``/``
I/PRP
had/VBD
some/DT
problem/NN
from/IN
time/NN
to/TO
time/NN
on/IN
the/DT
length/NN
of/IN
time/NN
he/PRP
would/MD
take/VB
to/TO
make/VB
up/RP
his/PRP$
mind/NN
,/,
''/''
Mr./NNP
Ferrer/NNP
admits/VBZ
,/,
but/CC
he/PRP
maintains/VBZ
that/IN
he/PRP
did/VBD
n't/RB
delay/VB
his/PRP$
support/NN
of/IN
Mr./NNP
Dinkins/NNP
and/CC
that/IN
he/PRP
backs/VBZ
the/DT
Democratic/JJ
candidate/NN
enthusiastically/RB
./.
Mr./NNP
Dinkins/NNP
's/POS
campaign/NN
manager/NN
and/CC
former/JJ
chief/NN
of/IN
staff/NN
,/,
Bill/NNP
Lynch/NNP
,/,
denies/VBZ
that/IN
the/DT
Manhattan/NNP
borough/NN
president/NN
has/VBZ
taken/VBN
too/RB
long/JJ
to/TO
decide/VB
important/JJ
issues/NNS
./.
``/``
We/PRP
did/VBD
n't/RB
rubber-stamp/VB
everything/NN
that/WDT
came/VBD
to/TO
us/PRP
,/,
''/''
Mr./NNP
Lynch/NNP
says/VBZ
./.
On/IN
some/DT
occasions/NNS
when/WRB
Mr./NNP
Dinkins/NNP
has/VBZ
discussed/VBN
the/DT
issues/NNS
during/IN
the/DT
campaign/NN
,/,
he/PRP
has/VBZ
run/VBN
into/IN
a/DT
familiar/JJ
kind/NN
of/IN
trouble/NN
./.
Some/DT
supporters/NNS
were/VBD
stunned/JJ
this/DT
summer/NN
when/WRB
Mr./NNP
Dinkins/NNP
suggested/VBD
weakening/VBG
the/DT
law/NN
forbidding/VBG
public/JJ
employees/NNS
to/TO
go/VB
on/IN
strike/NN
./.
He/PRP
withdrew/VBD
the/DT
remark/NN
./.
When/WRB
he/PRP
later/RB
sided/VBD
with/IN
striking/JJ
hospital/NN
workers/NNS
,/,
some/DT
allies/NNS
cringed/VBD
a/DT
little/RB
more/RBR
,/,
concerned/JJ
that/IN
Mr./NNP
Dinkins/NNP
was/VBD
setting/VBG
the/DT
wrong/JJ
tone/NN
for/IN
coming/VBG
contract/NN
negotiations/NNS
with/IN
city/NN
employees/NNS
./.
Then/RB
,/,
two/CD
days/NNS
before/IN
receiving/VBG
an/DT
endorsement/NN
from/IN
environmental/JJ
groups/NNS
,/,
Mr./NNP
Dinkins/NNP
promised/VBD
he/PRP
would/MD
issue/VB
a/DT
three-year/JJ
moratorium/NN
on/IN
construction/NN
of/IN
garbage-incinerator/NN
plants/NNS
./.
That/DT
announcement/NN
was/VBD
roundly/RB
criticized/VBN
by/IN
Mayor/NNP
Koch/NNP
--/:
who/WP
has/VBZ
endorsed/VBN
Mr./NNP
Dinkins/NNP
--/:
because/IN
the/DT
city/NN
faces/VBZ
a/DT
garbage/NN
crisis/NN
and/CC
has/VBZ
already/RB
spent/VBN
$/$
5/CD
million/CD
planning/NN
for/IN
an/DT
incinerator/NN
that/WDT
would/MD
be/VB
scrapped/VBN
under/IN
Mr./NNP
Dinkins/NNP
's/POS
proposal/NN
./.
While/IN
his/PRP$
public/JJ
statements/NNS
have/VBP
at/IN
times/NNS
been/VBN
confusing/VBG
,/,
Mr./NNP
Dinkins/NNP
's/POS
position/NN
papers/NNS
have/VBP
more/RBR
consistently/RB
reflected/VBN
anti-development/JJ
sentiment/NN
./.
He/PRP
favors/VBZ
a/DT
form/NN
of/IN
commercial/JJ
rent/NN
control/NN
,/,
which/WDT
the/DT
financial/JJ
community/NN
believes/VBZ
would/MD
make/VB
it/PRP
more/RBR
difficult/JJ
to/TO
attract/VB
investment/NN
in/IN
the/DT
city/NN
./.
In/IN
the/DT
midst/NN
of/IN
a/DT
labor/NN
shortage/NN
,/,
he/PRP
proposes/VBZ
linking/VBG
city/NN
subsidies/NNS
to/TO
businesses/NNS
to/TO
their/PRP$
record/NN
of/IN
hiring/VBG
New/NNP
York/NNP
City/NNP
residents/NNS
./.
With/IN
an/DT
untrained/JJ
local/JJ
labor/NN
pool/NN
,/,
many/JJ
experts/NNS
believe/VBP
,/,
that/DT
policy/NN
could/MD
drive/VB
businesses/NNS
from/IN
the/DT
city/NN
./.
And/CC
he/PRP
favors/VBZ
a/DT
more/RBR
cooperative/JJ
approach/NN
toward/IN
the/DT
neighboring/VBG
states/NNS
of/IN
New/NNP
Jersey/NNP
and/CC
Connecticut/NNP
in/IN
the/DT
battle/NN
over/IN
companies/NNS
thinking/VBG
of/IN
moving/VBG
employees/NNS
out/IN
of/IN
New/NNP
York/NNP
City/NNP
./.
Many/JJ
economic-development/NN
officials/NNS
say/VBP
the/DT
Koch/NNP
administration/NN
's/POS
aggressive/JJ
approach/NN
helped/VBD
save/VB
5,000/CD
Chase/NNP
Manhattan/NNP
Bank/NNP
jobs/NNS
from/IN
moving/VBG
across/IN
the/DT
Hudson/NNP
./.
But/CC
Mr./NNP
Dinkins/NNP
's/POS
economic/JJ
planks/NNS
do/VBP
n't/RB
seem/VB
to/TO
bother/VB
the/DT
business/NN
community/NN
,/,
where/WRB
he/PRP
draws/VBZ
significant/JJ
support/NN
./.
Steven/NNP
Spinola/NNP
,/,
president/NN
of/IN
the/DT
Real/NNP
Estate/NNP
Board/NNP
of/IN
New/NNP
York/NNP
,/,
an/DT
industry/NN
organization/NN
,/,
says/VBZ
Mr./NNP
Dinkins/NNP
's/POS
``/``
economic/JJ
development/NN
program/NN
is/VBZ
shortsighted/JJ
,/,
but/CC
when/WRB
it/PRP
comes/VBZ
down/RB
to/TO
it/PRP
,/,
he/PRP
can/MD
be/VB
reasonable/JJ
./.
''/''
Mr./NNP
Dinkins/NNP
's/POS
inner/JJ
circle/NN
of/IN
advisers/NNS
appears/VBZ
to/TO
include/VB
both/DT
ideologues/NNS
and/CC
pragmatists/NNS
,/,
leaving/VBG
voters/NNS
with/IN
little/JJ
clue/NN
as/IN
to/TO
who/WP
will/MD
be/VB
more/RBR
influential/JJ
./.
The/DT
key/JJ
man/NN
seems/VBZ
to/TO
be/VB
the/DT
campaign/NN
manager/NN
,/,
Mr./NNP
Lynch/NNP
./.
A/DT
disheveled/JJ
,/,
roly-poly/JJ
son/NN
of/IN
a/DT
Long/NNP
Island/NNP
potato/NN
farmer/NN
,/,
Mr./NNP
Lynch/NNP
is/VBZ
a/DT
veteran/JJ
union/NN
organizer/NN
who/WP
worked/VBD
on/IN
the/DT
presidential/JJ
campaigns/NNS
of/IN
Sen./NNP
Edward/NNP
Kennedy/NNP
and/CC
Mr./NNP
Jackson/NNP
./.
But/CC
as/IN
the/DT
Dinkins/NNP
campaign/NN
hit/VBD
tough/JJ
times/NNS
this/DT
month/NN
,/,
Andrew/NNP
Cuomo/NNP
,/,
the/DT
politically/RB
seasoned/JJ
son/NN
of/IN
the/DT
New/NNP
York/NNP
governor/NN
,/,
is/VBZ
also/RB
said/VBN
to/TO
have/VB
taken/VBN
a/DT
more/RBR
active/JJ
role/NN
on/IN
strategy/NN
./.
Another/DT
close/JJ
ally/NN
is/VBZ
Ruth/NNP
Messinger/NNP
,/,
a/DT
Manhattan/NNP
city/NN
councilwoman/NN
,/,
some/DT
of/IN
whose/WP$
programs/NNS
,/,
such/JJ
as/IN
commercial/JJ
rent/NN
control/NN
,/,
have/VBP
made/VBN
their/PRP$
way/NN
into/IN
Mr./NNP
Dinkins/NNP
's/POS
position/NN
papers/NNS
./.
If/IN
she/PRP
remains/VBZ
influential/JJ
with/IN
Mr./NNP
Dinkins/NNP
,/,
as/IN
some/DT
suggest/VBP
she/PRP
will/MD
,/,
his/PRP$
mayoralty/NN
may/MD
take/VB
on/IN
a/DT
more/RBR
anti-development/JJ
flavor/NN
./.
But/CC
Lincoln/NNP
Center/NNP
President/NNP
Nathan/NNP
Leventhal/NNP
,/,
who/WP
would/MD
head/VB
a/DT
Dinkins/NNP
transition/NN
team/NN
,/,
is/VBZ
more/RBR
mainstream/JJ
,/,
as/IN
is/VBZ
real-estate/NN
executive/NN
Anthony/NNP
Gliedman/NNP
,/,
another/DT
insider/NN
./.
Mr./NNP
Dinkins/NNP
also/RB
has/VBZ
said/VBN
he/PRP
would/MD
receive/VB
economic/JJ
advice/NN
from/IN
a/DT
board/NN
that/WDT
would/MD
include/VB
American/NNP
Express/NNP
Co./NNP
chairman/NN
James/NNP
D./NNP
Robinson/NNP
III/NNP
,/,
investment/NN
banker/NN
Felix/NNP
Rohatyn/NNP
,/,
leveraged-buy-out/NN
specialist/NN
Reginald/NNP
Lewis/NNP
and/CC
attorney/NN
Joseph/NNP
Flom/NNP
./.
Some/DT
business/NN
leaders/NNS
and/CC
others/NNS
also/RB
believe/VB
that/IN
Mr./NNP
Dinkins/NNP
would/MD
place/VB
significant/JJ
responsibility/NN
in/IN
the/DT
hands/NNS
of/IN
a/DT
deputy/JJ
mayor/NN
with/IN
a/DT
strong/JJ
administrative/JJ
background/NN
./.
Names/NNS
of/IN
possible/JJ
deputies/NNS
that/WDT
have/VBP
surfaced/VBN
include/VBP
former/JJ
mayoral/JJ
candidate/NN
Richard/NNP
Ravitch/NNP
,/,
former/JJ
schools/NNS
chancellor/NN
Frank/NNP
Macchiarola/NNP
and/CC
Messrs./NNPS
Leventhal/NNP
and/CC
Gliedman/NNP
./.
Then/RB
there/EX
are/VBP
Mr./NNP
Dinkins/NNP
's/POS
old-time/JJ
Harlem/NNP
colleagues/NNS
,/,
such/JJ
as/IN
U.S./NNP
Rep./NNP
Rangel/NNP
,/,
former/JJ
Deputy/NNP
Mayor/NNP
Paterson/NNP
and/CC
Mr./NNP
Sutton/NNP
./.
Having/VBG
attained/VBN
positions/NNS
of/IN
real/JJ
influence/NN
or/CC
wealth/NN
,/,
these/DT
men/NNS
constitute/VBP
the/DT
Old/NNP
Guard/NNP
of/IN
New/NNP
York/NNP
City/NNP
black/JJ
politics/NNS
;/:
they/PRP
are/VBP
less/RBR
confrontational/JJ
than/IN
the/DT
younger/JJR
,/,
more/RBR
activist/JJ
black/JJ
political/JJ
community/NN
that/WDT
has/VBZ
been/VBN
based/VBN
largely/RB
in/IN
Brooklyn/NNP
./.
Part/NN
of/IN
Mr./NNP
Dinkins/NNP
's/POS
strength/NN
is/VBZ
his/PRP$
ability/NN
to/TO
win/VB
the/DT
support/NN
of/IN
both/DT
the/DT
Brooklyn/NNP
and/CC
Harlem/NNP
factions/NNS
./.
``/``
We/PRP
know/VBP
there/EX
are/VBP
potholes/NNS
for/IN
the/DT
city/NN
out/RB
there/RB
,/,
''/''
says/VBZ
Mr./NNP
Paterson/NNP
,/,
Mr./NNP
Dinkins/NNP
's/POS
former/JJ
law/NN
partner/NN
./.
``/``
If/IN
any/DT
of/IN
us/PRP
think/VBP
we/PRP
're/VBP
going/VBG
to/TO
sidetrack/VB
David/NNP
's/POS
determination/NN
to/TO
be/VB
the/DT
best/RBS
possible/JJ
mayor/NN
because/IN
of/IN
his/PRP$
obligations/NNS
to/TO
us/PRP
,/,
we/PRP
are/VBP
making/VBG
a/DT
sad/JJ
mistake/NN
./.
''/''
Adds/VBZ
Ms./NNP
Messinger/NNP
,/,
who/WP
is/VBZ
expected/VBN
to/TO
win/VB
the/DT
borough/NN
president/NN
's/POS
job/NN
Mr./NNP
Dinkins/NNP
is/VBZ
vacating/VBG
,/,
``/``
You/PRP
have/VBP
to/TO
remember/VB
David/NNP
is/VBZ
a/DT
pragmatist/NN
./.
''/''
But/CC
Mr./NNP
Dinkins/NNP
's/POS
sense/NN
of/IN
pragmatism/NN
often/RB
comes/VBZ
across/IN
more/RBR
as/IN
an/DT
insider/NN
's/POS
determination/NN
not/RB
to/TO
upset/VB
the/DT
political/JJ
apple/NN
cart/NN
./.
He/PRP
is/VBZ
taken/VBN
aback/RB
in/IN
an/DT
interview/NN
when/WRB
asked/VBD
whether/IN
,/,
as/IN
mayor/NN
,/,
he/PRP
plans/VBZ
on/IN
reforming/VBG
the/DT
political/JJ
``/``
fiefdoms/NNS
''/''
that/WDT
perpetuate/VBP
the/DT
monumental/JJ
ineffectiveness/NN
of/IN
New/NNP
York/NNP
's/POS
school/NN
system/NN
./.
``/``
I/PRP
will/MD
sit/VB
down/RB
and/CC
talk/VB
some/DT
of/IN
the/DT
problems/NNS
out/RP
,/,
but/CC
take/VB
on/RP
the/DT
political/JJ
system/NN
?/.
Uh-uh/UH
,/,
''/''
he/PRP
says/VBZ
with/IN
a/DT
shake/NN
of/IN
the/DT
head/NN
./.
Despite/IN
many/JJ
doubts/NNS
about/IN
his/PRP$
candidacy/NN
,/,
white/JJ
New/NNPS
Yorkers/NNPS
--/:
who/WP
gave/VBD
Mr./NNP
Dinkins/NNP
30/CD
%/NN
of/IN
their/PRP$
votes/NNS
in/IN
the/DT
primary/NN
--/:
are/VBP
n't/RB
expected/VBN
to/TO
desert/VB
in/IN
sufficient/JJ
numbers/NNS
to/TO
turn/VB
the/DT
election/NN
to/TO
Mr./NNP
Giuliani/NNP
./.
The/DT
former/JJ
U.S./NNP
attorney/NN
,/,
who/WP
prosecuted/VBD
targets/NNS
ranging/VBG
from/IN
Mafia/NNP
dons/NNS
to/TO
Wall/NNP
Street/NNP
executives/NNS
,/,
has/VBZ
succeeded/VBN
in/IN
raising/VBG
questions/NNS
about/IN
Mr./NNP
Dinkins/NNP
's/POS
ethical/JJ
standards/NNS
,/,
but/CC
so/RB
far/RB
has/VBZ
failed/VBN
to/TO
generate/VB
excitement/NN
about/IN
his/PRP$
own/JJ
candidacy/NN
./.
As/IN
a/DT
Republican/NNP
in/IN
an/DT
overwhelmingly/RB
Democratic/JJ
city/NN
,/,
Mr./NNP
Giuliani/NNP
has/VBZ
an/DT
inherent/JJ
handicap/NN
./.
As/IN
a/DT
first-time/JJ
candidate/NN
,/,
he/PRP
has/VBZ
been/VBN
slow/JJ
to/TO
learn/VB
the/DT
nuances/NNS
of/IN
New/NNP
York/NNP
City/NNP
politicking/NN
./.
Mr./NNP
Giuliani/NNP
is/VBZ
finding/VBG
that/IN
Mr./NNP
Dinkins/NNP
,/,
in/IN
his/PRP$
many/JJ
years/NNS
in/IN
public/JJ
life/NN
,/,
has/VBZ
built/VBN
up/RP
considerable/JJ
good/JJ
will/NN
that/WDT
so/RB
far/RB
has/VBZ
led/VBN
many/JJ
voters/NNS
to/TO
overlook/VB
certain/JJ
failings/NNS
./.
``/``
The/DT
bottom/JJ
line/NN
is/VBZ
that/IN
he/PRP
is/VBZ
a/DT
very/RB
genuine/JJ
and/CC
decent/JJ
guy/NN
,/,
''/''
says/VBZ
Malcolm/NNP
Hoenlein/NNP
,/,
a/DT
Jewish/JJ
community/NN
leader/NN
./.
``/``
In/IN
the/DT
end/NN
,/,
I/PRP
think/VBP
David/NNP
will/MD
be/VB
judged/VBN
for/IN
being/VBG
David/NNP
./.
''/''
Toni/NNP
Johnson/NNP
pulls/VBZ
a/DT
tape/NN
measure/NN
across/IN
the/DT
front/NN
of/IN
what/WP
was/VBD
once/RB
a/DT
stately/JJ
Victorian/JJ
home/NN
./.
A/DT
deep/JJ
trench/NN
now/RB
runs/VBZ
along/IN
its/PRP$
north/NN
wall/NN
,/,
exposed/VBN
when/WRB
the/DT
house/NN
lurched/VBD
two/CD
feet/NNS
off/IN
its/PRP$
foundation/NN
during/IN
last/JJ
week/NN
's/POS
earthquake/NN
./.
A/DT
side/NN
porch/NN
was/VBD
ripped/VBN
away/RB
./.
The/DT
chimney/NN
is/VBZ
a/DT
pile/NN
of/IN
bricks/NNS
on/IN
the/DT
front/JJ
lawn/NN
./.
The/DT
remainder/NN
of/IN
the/DT
house/NN
leans/VBZ
precariously/RB
against/IN
a/DT
sturdy/JJ
oak/NN
tree/NN
./.
The/DT
petite/JJ
,/,
29-year-old/JJ
Ms./NNP
Johnson/NNP
,/,
dressed/VBN
in/IN
jeans/NNS
and/CC
a/DT
sweatshirt/NN
as/IN
she/PRP
slogs/VBZ
through/IN
the/DT
steady/JJ
afternoon/NN
rain/NN
,/,
is/VBZ
a/DT
claims/NNS
adjuster/NN
with/IN
Aetna/NNP
Life/NNP
&/CC
Casualty/NNP
./.
She/PRP
has/VBZ
been/VBN
on/IN
the/DT
move/NN
almost/RB
incessantly/RB
since/IN
last/JJ
Thursday/NNP
,/,
when/WRB
an/DT
army/NN
of/IN
adjusters/NNS
,/,
employed/VBN
by/IN
major/JJ
insurers/NNS
,/,
invaded/VBD
the/DT
San/NNP
Francisco/NNP
area/NN
to/TO
help/VB
policyholders/NNS
sift/VB
through/IN
the/DT
rubble/NN
and/CC
restore/VB
some/DT
order/NN
to/TO
their/PRP$
lives/NNS
./.
Equipped/VBN
with/IN
cellular/JJ
telephones/NNS
,/,
laptop/NN
computers/NNS
,/,
calculators/NNS
and/CC
a/DT
pack/NN
of/IN
blank/JJ
checks/NNS
,/,
they/PRP
parcel/VBP
out/RP
money/NN
so/IN
their/PRP$
clients/NNS
can/MD
find/VB
temporary/JJ
living/NN
quarters/NNS
,/,
buy/VB
food/NN
,/,
replace/VB
lost/VBN
clothing/NN
,/,
repair/VB
broken/JJ
water/NN
heaters/NNS
,/,
and/CC
replaster/VB
walls/NNS
./.
Some/DT
of/IN
the/DT
funds/NNS
will/MD
used/VBN
to/TO
demolish/VB
unstable/JJ
buildings/NNS
and/CC
clear/VB
sites/NNS
for/IN
future/JJ
construction/NN
./.
Many/JJ
adjusters/NNS
are/VBP
authorized/VBN
to/TO
write/VB
checks/NNS
for/IN
amounts/NNS
up/RB
to/TO
$/$
100,000/CD
on/IN
the/DT
spot/NN
./.
They/PRP
do/VBP
n't/RB
flinch/VB
at/IN
writing/VBG
them/PRP
./.
``/``
That/DT
's/VBZ
my/PRP$
job/NN
--/:
get/VB
{/(
policyholders/NNS
what/WP
they/PRP
're/VBP
entitled/VBN
to/TO
,/,
''/''
says/VBZ
Bill/NNP
Schaeffer/NNP
,/,
a/DT
claims/NNS
supervisor/NN
who/WP
flew/VBD
in/RB
from/IN
Aetna/NN
's/POS
Bridgeport/NNP
,/,
Conn./NNP
,/,
office/NN
./.
The/DT
Victorian/JJ
house/NN
that/IN
Ms./NNP
Johnson/NNP
is/VBZ
inspecting/VBG
has/VBZ
been/VBN
deemed/VBN
unsafe/JJ
by/IN
town/NN
officials/NNS
./.
But/CC
she/PRP
asks/VBZ
a/DT
workman/NN
toting/VBG
the/DT
bricks/NNS
from/IN
the/DT
lawn/NN
to/TO
give/VB
her/PRP
a/DT
boost/NN
through/IN
an/DT
open/JJ
first-floor/NN
window/NN
./.
Once/RB
inside/RB
,/,
she/PRP
spends/VBZ
nearly/RB
four/CD
hours/NNS
measuring/VBG
and/CC
diagramming/VBG
each/DT
room/NN
in/IN
the/DT
80-year-old/JJ
house/NN
,/,
gathering/VBG
enough/JJ
information/NN
to/TO
estimate/VB
what/WP
it/PRP
would/MD
cost/VB
to/TO
rebuild/VB
it/PRP
./.
She/PRP
snaps/VBZ
photos/NNS
of/IN
the/DT
buckled/JJ
floors/NNS
and/CC
the/DT
plaster/NN
that/WDT
has/VBZ
fallen/VBN
away/RB
from/IN
the/DT
walls/NNS
./.
While/IN
she/PRP
works/VBZ
inside/RB
,/,
a/DT
tenant/NN
returns/VBZ
with/IN
several/JJ
friends/NNS
to/TO
collect/VB
furniture/NN
and/CC
clothing/NN
./.
One/CD
of/IN
the/DT
friends/NNS
sweeps/VBZ
broken/JJ
dishes/NNS
and/CC
shattered/JJ
glass/NN
from/IN
a/DT
countertop/NN
and/CC
starts/VBZ
to/TO
pack/VB
what/WP
can/MD
be/VB
salvaged/VBN
from/IN
the/DT
kitchen/NN
./.
Others/NNS
grab/VBP
books/NNS
,/,
records/NNS
,/,
photo/NN
albums/NNS
,/,
sofas/NNS
and/CC
chairs/NNS
,/,
working/VBG
frantically/RB
in/IN
the/DT
fear/NN
that/IN
an/DT
aftershock/NN
will/MD
jolt/VB
the/DT
house/NN
again/RB
./.
The/DT
owners/NNS
,/,
William/NNP
and/CC
Margie/NNP
Hammack/NNP
,/,
are/VBP
luckier/JJR
than/IN
many/JJ
others/NNS
./.
A/DT
few/JJ
years/NNS
ago/RB
,/,
Mrs./NNP
Hammack/NNP
insisted/VBD
on/IN
buying/VBG
earthquake/NN
insurance/NN
for/IN
this/DT
house/NN
,/,
which/WDT
had/VBD
been/VBN
converted/VBN
into/IN
apartments/NNS
./.
Only/RB
about/IN
20/CD
%/NN
of/IN
California/NNP
home/NN
and/CC
business/NN
owners/NNS
carried/VBD
earthquake/NN
coverage/NN
./.
The/DT
Hammacks/NNP
'/POS
own/JJ
home/NN
,/,
also/RB
in/IN
Los/NNP
Gatos/NNP
,/,
suffered/VBD
comparatively/RB
minor/JJ
damage/NN
./.
Ms./NNP
Johnson/NNP
,/,
who/WP
works/VBZ
out/IN
of/IN
Aetna/NNP
's/POS
office/NN
in/IN
Walnut/NNP
Creek/NNP
,/,
an/DT
East/NNP
Bay/NNP
suburb/NN
,/,
is/VBZ
awed/JJ
by/IN
the/DT
earthquake/NN
's/POS
destructive/JJ
force/NN
./.
``/``
It/PRP
really/RB
brings/VBZ
you/PRP
down/RP
to/TO
a/DT
human/JJ
level/NN
,/,
''/''
she/PRP
says/VBZ
./.
``/``
It/PRP
's/VBZ
hard/JJ
to/TO
accept/VB
all/PDT
the/DT
suffering/NN
people/NNS
are/VBP
going/VBG
through/IN
,/,
but/CC
you/PRP
have/VBP
to/TO
./.
If/IN
you/PRP
do/VBP
n't/RB
,/,
you/PRP
ca/MD
n't/RB
do/VB
your/PRP$
job/NN
./.
''/''
For/IN
Aetna/NNP
and/CC
other/JJ
insurers/NNS
,/,
the/DT
San/NNP
Francisco/NNP
earthquake/NN
hit/VBD
when/WRB
resources/NNS
in/IN
the/DT
field/NN
already/RB
were/VBD
stretched/VBN
./.
Most/RBS
companies/NNS
still/RB
are/VBP
trying/VBG
to/TO
sort/VB
through/IN
the/DT
wreckage/NN
caused/VBN
by/IN
Hurricane/NNP
Hugo/NNP
in/IN
the/DT
Carolinas/NNPS
last/JJ
month/NN
./.
Aetna/NNP
,/,
which/WDT
has/VBZ
nearly/RB
3,000/CD
adjusters/NNS
,/,
had/VBD
deployed/VBN
about/IN
750/CD
of/IN
them/PRP
in/IN
Charlotte/NNP
,/,
Columbia/NNP
,/,
and/CC
Charleston/NNP
./.
Adjusters/NNS
who/WP
had/VBD
been/VBN
working/VBG
on/IN
the/DT
East/NNP
Coast/NNP
say/VBP
the/DT
insurer/NN
will/MD
still/RB
be/VB
processing/VBG
claims/NNS
from/IN
that/DT
storm/NN
through/IN
December/NNP
./.
It/PRP
could/MD
take/VB
six/CD
to/TO
nine/CD
months/NNS
to/TO
handle/VB
the/DT
earthquake-related/JJ
claims/NNS
./.
When/WRB
the/DT
earthquake/NN
rocked/VBD
northern/JJ
California/NNP
last/JJ
week/NN
,/,
Aetna/NNP
senior/JJ
claims/NNS
executives/NNS
from/IN
the/DT
San/NNP
Francisco/NNP
area/NN
were/VBD
at/IN
the/DT
company/NN
's/POS
Hartford/NNP
,/,
Conn./NNP
,/,
headquarters/NN
for/IN
additional/JJ
training/NN
on/IN
how/WRB
to/TO
handle/VB
major/JJ
catastrophes/NNS
,/,
including/VBG
earthquakes/NNS
./.
Since/IN
commercial/JJ
airline/NN
flights/NNS
were/VBD
disrupted/VBN
,/,
the/DT
company/NN
chartered/VBD
three/CD
planes/NNS
to/TO
fly/VB
these/DT
executives/NNS
back/RB
to/TO
the/DT
West/NNP
Coast/NNP
and/CC
bring/VB
along/IN
portable/JJ
computers/NNS
,/,
cellular/JJ
phones/NNS
and/CC
some/DT
claims/NNS
adjusters/NNS
./.
Because/IN
of/IN
the/DT
difficulty/NN
of/IN
assessing/VBG
the/DT
damages/NNS
caused/VBN
by/IN
the/DT
earthquake/NN
,/,
Aetna/NNP
pulled/VBD
together/RB
a/DT
team/NN
of/IN
its/PRP$
most/RBS
experienced/JJ
claims/NNS
adjusters/NNS
from/IN
around/IN
the/DT
country/NN
./.
Even/RB
so/RB
,/,
few/JJ
had/VBD
ever/RB
dealt/VBN
with/IN
an/DT
earthquake/NN
./.
Some/DT
adjusters/NNS
,/,
like/IN
Alan/NNP
Singer/NNP
of/IN
San/NNP
Diego/NNP
,/,
had/VBD
been/VBN
working/VBG
in/IN
Charleston/NNP
for/IN
nearly/RB
four/CD
weeks/NNS
./.
He/PRP
returned/VBD
home/RB
last/JJ
Thursday/NNP
,/,
packed/VBD
a/DT
bag/NN
with/IN
fresh/JJ
clothes/NNS
and/CC
reported/VBD
for/IN
duty/NN
Friday/NNP
in/IN
Walnut/NNP
Creek/NNP
./.
Offices/NNS
were/VBD
set/VBN
up/RB
in/IN
San/NNP
Francisco/NNP
and/CC
San/NNP
Jose/NNP
./.
In/IN
a/DT
few/JJ
instances/NNS
,/,
Aetna/NNP
knew/VBD
it/PRP
would/MD
probably/RB
be/VB
shelling/VBG
out/RP
big/JJ
bucks/NNS
,/,
even/RB
before/IN
a/DT
client/NN
called/VBD
or/CC
faxed/VBD
in/RP
a/DT
claim/NN
./.
For/IN
example/NN
,/,
officials/NNS
at/IN
Walnut/NNP
Creek/NNP
office/NN
learned/VBD
that/IN
the/DT
Amfac/NNP
Hotel/NNP
near/IN
the/DT
San/NNP
Francisco/NNP
airport/NN
,/,
which/WDT
is/VBZ
insured/VBN
by/IN
Aetna/NNP
,/,
was/VBD
badly/RB
damaged/VBN
when/WRB
they/PRP
saw/VBD
it/PRP
on/IN
network/NN
television/NN
news/NN
./.
``/``
The/DT
secret/NN
to/TO
being/VBG
a/DT
good/JJ
adjuster/NN
is/VBZ
counting/VBG
,/,
''/''
says/VBZ
Gerardo/NNP
Rodriguez/NNP
,/,
an/DT
Aetna/NNP
adjuster/NN
from/IN
Santa/NNP
Ana/NNP
./.
``/``
You/PRP
have/VBP
to/TO
count/VB
everything/NN
./.
''/''
Adjusters/NNS
must/MD
count/VB
the/DT
number/NN
of/IN
bathrooms/NNS
,/,
balconies/NNS
,/,
fireplaces/NNS
,/,
chimneys/NNS
,/,
microwaves/NNS
and/CC
dishwashers/NNS
./.
But/CC
they/PRP
must/MD
also/RB
assign/VB
a/DT
price/NN
to/TO
each/DT
of/IN
these/DT
items/NNS
as/RB
well/RB
as/IN
to/TO
floors/NNS
,/,
wallcoverings/NNS
,/,
roofing/NN
and/CC
siding/NN
,/,
to/TO
come/VB
up/RB
with/IN
a/DT
total/JJ
value/NN
for/IN
a/DT
house/NN
./.
To/TO
do/VB
that/DT
,/,
they/PRP
must/MD
think/VB
in/IN
terms/NNS
of/IN
sheetrock/NN
by/IN
the/DT
square/NN
foot/NN
,/,
carpeting/NN
by/IN
the/DT
square/NN
yard/NN
,/,
wallpaper/NN
by/IN
the/DT
roll/NN
,/,
molding/NN
by/IN
the/DT
linear/JJ
foot/NN
./.
Using/VBG
a/DT
calculator/NN
and/CC
a/DT
unit-price/NN
guide/NN
for/IN
such/JJ
jobs/NNS
as/IN
painting/NN
,/,
plumbing/NN
and/CC
roofing/NN
in/IN
each/DT
major/JJ
region/NN
of/IN
the/DT
country/NN
,/,
adjusters/NNS
can/MD
figure/VB
out/RP
the/DT
value/NN
of/IN
a/DT
home/NN
in/IN
today/NN
's/POS
market/NN
and/CC
what/WP
it/PRP
would/MD
cost/VB
to/TO
rebuild/VB
it/PRP
./.
Sometimes/RB
repairs/NNS
are/VBP
out/IN
of/IN
the/DT
question/NN
./.
When/WRB
Aetna/NNP
adjuster/NN
Bill/NNP
Schaeffer/NNP
visited/VBD
a/DT
retired/JJ
couple/NN
in/IN
Oakland/NN
last/JJ
Thursday/NNP
,/,
he/PRP
found/VBD
them/PRP
living/VBG
in/IN
a/DT
mobile/JJ
home/NN
parked/VBN
in/IN
front/NN
of/IN
their/PRP$
yard/NN
./.
The/DT
house/NN
itself/PRP
,/,
located/VBN
about/IN
50/CD
yards/NNS
from/IN
the/DT
collapsed/JJ
section/NN
of/IN
double-decker/JJ
highway/NN
Interstate/NNP
880/CD
,/,
was/VBD
pushed/VBN
about/IN
four/CD
feet/NNS
off/IN
its/PRP$
foundation/NN
and/CC
then/RB
collapsed/VBD
into/IN
its/PRP$
basement/NN
./.
The/DT
next/JJ
day/NN
,/,
Mr./NNP
Schaeffer/NNP
presented/VBD
the/DT
couple/NN
with/IN
a/DT
check/NN
for/IN
$/$
151,000/CD
to/TO
help/VB
them/PRP
build/VB
a/DT
new/JJ
home/NN
in/IN
the/DT
same/JJ
neighborhood/NN
./.
He/PRP
also/RB
is/VBZ
working/VBG
with/IN
a/DT
real-estate/NN
agent/NN
to/TO
help/VB
find/VB
them/PRP
an/DT
apartment/NN
to/TO
rent/VB
while/IN
their/PRP$
home/NN
is/VBZ
being/VBG
built/VBN
./.
Many/JJ
of/IN
the/DT
adjusters/NNS
employed/VBN
by/IN
Aetna/NNP
and/CC
other/JJ
insurers/NNS
have/VBP
some/DT
experience/NN
with/IN
construction/NN
work/NN
or/CC
carpentry/NN
./.
But/CC
such/JJ
skills/NNS
were/VBD
alien/JJ
to/TO
Toni/NNP
Johnson/NNP
./.
Four/CD
years/NNS
ago/RB
,/,
she/PRP
was/VBD
managing/VBG
a/DT
film-processing/NN
shop/NN
and/CC
was/VBD
totally/RB
bored/JJ
./.
A/DT
friend/NN
mentioned/VBD
that/IN
she/PRP
might/MD
want/VB
to/TO
look/VB
into/IN
a/DT
position/NN
at/IN
Aetna/NNP
,/,
if/IN
she/PRP
was/VBD
interested/JJ
in/IN
a/DT
job/NN
that/WDT
would/MD
constantly/RB
challenge/VB
her/PRP
./.
She/PRP
signed/VBD
up/RB
,/,
starting/VBG
as/IN
an/DT
``/``
inside/JJ
''/''
adjuster/NN
,/,
who/WP
settles/VBZ
minor/JJ
claims/NNS
and/CC
does/VBZ
a/DT
lot/NN
of/IN
work/NN
by/IN
phone/NN
./.
A/DT
year/NN
later/RB
,/,
she/PRP
moved/VBD
to/TO
the/DT
commercial/JJ
property/NN
claims/NNS
division/NN
./.
She/PRP
spent/VBD
a/DT
month/NN
at/IN
an/DT
Aetna/NNP
school/NN
in/IN
Gettysburg/NNP
,/,
Pa./NNP
,/,
learning/VBG
all/DT
about/IN
the/DT
construction/NN
trade/NN
,/,
including/VBG
masonry/NN
,/,
plumbing/NN
and/CC
electrical/JJ
wiring/NN
./.
That/DT
was/VBD
followed/VBN
by/IN
three/CD
months/NNS
at/IN
the/DT
Aetna/NNP
Institute/NNP
in/IN
Hartford/NNP
,/,
where/WRB
she/PRP
was/VBD
immersed/VBN
in/IN
learning/VBG
how/WRB
to/TO
read/VB
and/CC
interpret/VB
policies/NNS
./.
Her/PRP$
new/JJ
line/NN
of/IN
work/NN
has/VBZ
some/DT
perils/NNS
./.
Recently/RB
,/,
a/DT
contractor/NN
saved/VBD
her/PRP
from/IN
falling/VBG
three/CD
stories/NNS
as/IN
she/PRP
investigated/VBD
what/WP
remained/VBD
of/IN
an/DT
old/JJ
Victorian/JJ
house/NN
torched/VBN
by/IN
an/DT
arsonist/NN
./.
``/``
I/PRP
owe/VBP
that/DT
contractor/NN
./.
I/PRP
really/RB
do/VBP
,/,
''/''
she/PRP
says/VBZ
./.
As/IN
Ms./NNP
Johnson/NNP
stands/VBZ
outside/IN
the/DT
Hammack/NNP
house/NN
after/IN
winding/VBG
up/RP
her/PRP$
chores/NNS
there/EX
,/,
the/DT
house/NN
begins/VBZ
to/TO
creak/VB
and/CC
sway/VB
./.
The/DT
ground/NN
shakes/VBZ
underneath/IN
her/PRP
./.
It/PRP
is/VBZ
an/DT
aftershock/NN
,/,
one/CD
of/IN
about/IN
2,000/CD
since/IN
the/DT
earthquake/NN
,/,
and/CC
it/PRP
makes/VBZ
her/PRP
uneasy/JJ
./.
The/DT
next/JJ
day/NN
,/,
as/IN
she/PRP
prepares/VBZ
a/DT
$/$
10,000/CD
check/NN
for/IN
the/DT
Hammacks/NNPS
,/,
which/WDT
will/MD
cover/VB
the/DT
cost/NN
of/IN
demolishing/VBG
the/DT
house/NN
and/CC
clearing/VBG
away/RB
the/DT
debris/NN
,/,
she/PRP
jumps/VBZ
at/IN
the/DT
slightest/JJS
noise/NN
./.
On/IN
further/JJ
reflection/NN
,/,
she/PRP
admits/VBZ
that/IN
venturing/VBG
inside/IN
the/DT
Hammacks/NNP
'/POS
house/NN
the/DT
previous/JJ
day/NN
was/VBD
n't/RB
``/``
such/JJ
a/DT
great/JJ
idea/NN
./.
''/''
During/IN
her/PRP$
second/JJ
meeting/NN
with/IN
the/DT
Hammacks/NNPS
,/,
Ms./NNP
Johnson/NNP
reviews/VBZ
exactly/RB
what/WP
their/PRP$
policy/NN
covers/VBZ
./.
They/PRP
would/MD
like/VB
to/TO
retrieve/VB
some/DT
appliances/NNS
on/IN
the/DT
second/JJ
floor/NN
,/,
but/CC
wonder/VBP
if/IN
it/PRP
's/VBZ
safe/JJ
to/TO
venture/VB
inside/RB
./.
Ms./NNP
Johnson/NNP
tells/VBZ
them/PRP
that/IN
,/,
if/IN
the/DT
appliances/NNS
ca/MD
n't/RB
be/VB
salvaged/VBN
,/,
their/PRP$
policy/NN
covers/VBZ
the/DT
replacement/NN
cost/NN
./.
Mr./NNP
Hammack/NNP
is/VBZ
eager/JJ
to/TO
know/VB
what/WP
Aetna/NNP
will/MD
pay/VB
for/IN
the/DT
house/NN
,/,
which/WDT
has/VBZ
to/TO
come/VB
down/RP
./.
``/``
When/WRB
will/MD
I/PRP
get/VB
that/DT
check/NN
for/IN
a/DT
million/CD
dollars/NNS
?/.
''/''
he/PRP
jokes/VBZ
./.
The/DT
adjuster/NN
had/VBD
n't/RB
completed/VBN
all/PDT
the/DT
calculations/NNS
,/,
but/CC
says/VBZ
:/:
``/``
We/PRP
're/VBP
talking/VBG
policy/NN
limits/NNS
./.
''/''
In/IN
this/DT
case/NN
,/,
that/WDT
's/VBZ
about/IN
$/$
250,000/CD
./.
It/PRP
suddenly/RB
dawns/VBZ
on/IN
Mr./NNP
Hammack/NNP
that/IN
rebuilding/VBG
the/DT
house/NN
in/IN
Los/NNP
Gatos/NNP
,/,
an/DT
affluent/JJ
community/NN
in/IN
Santa/NNP
Clara/NNP
County/NNP
,/,
may/MD
cost/VB
more/JJR
than/IN
Aetna/NNP
's/POS
policy/NN
will/MD
pay/VB
./.
``/``
We/PRP
can/MD
lose/VB
money/NN
on/IN
this/DT
,/,
''/''
he/PRP
says/VBZ
./.
``/``
And/CC
you/PRP
did/VBD
n't/RB
want/VB
me/PRP
to/TO
buy/VB
earthquake/NN
insurance/NN
,/,
''/''
says/VBZ
Mrs./NNP
Hammack/NNP
,/,
reaching/VBG
across/IN
the/DT
table/NN
and/CC
gently/RB
tapping/VBG
his/PRP$
hand/NN
./.
Earthquake/NN
insurance/NN
costs/VBZ
about/IN
$/$
2/CD
to/TO
$/$
4/CD
annually/RB
for/IN
every/DT
$/$
1,000/CD
of/IN
value/NN
,/,
and/CC
high/JJ
deductibles/NNS
mean/VBP
it/PRP
generally/RB
pays/VBZ
only/RB
when/WRB
there/EX
is/VBZ
a/DT
catastrophe/NN
./.
So/RB
,/,
many/JJ
Californians/NNPS
believe/VBP
they/PRP
can/MD
get/VB
by/RB
without/IN
it/PRP
./.
Even/RB
Ms./NNP
Johnson/NNP
herself/PRP
made/VBD
that/DT
assumption/NN
./.
``/``
I/PRP
always/RB
knew/VBD
that/IN
the/DT
`/``
Big/JJ
One/NN
'/''
was/VBD
coming/VBG
,/,
but/CC
not/RB
during/IN
my/PRP$
lifetime/NN
,/,
''/''
she/PRP
says/VBZ
./.
Now/RB
she/PRP
says/VBZ
she/PRP
's/VBZ
thinking/VBG
of/IN
contacting/VBG
her/PRP$
own/JJ
insurance/NN
agent/NN
./.
For/IN
Ms./NNP
Johnson/NNP
,/,
dealing/VBG
with/IN
the/DT
earthquake/NN
has/VBZ
been/VBN
more/JJR
than/IN
just/RB
a/DT
work/NN
experience/NN
./.
She/PRP
lives/VBZ
in/IN
Oakland/NNP
,/,
a/DT
community/NN
hit/VBN
hard/RB
by/IN
the/DT
earthquake/NN
./.
She/PRP
did/VBD
n't/RB
have/VB
hot/JJ
water/NN
for/IN
five/CD
days/NNS
./.
The/DT
apartment/NN
she/PRP
shares/VBZ
with/IN
a/DT
12-year-old/JJ
daughter/NN
and/CC
her/PRP$
sister/NN
was/VBD
rattled/VBN
,/,
books/NNS
and/CC
crystal/NN
hit/VBD
the/DT
floor/NN
,/,
but/CC
nothing/NN
was/VBD
severely/RB
damaged/JJ
./.
Her/PRP$
sister/NN
,/,
Cynthia/NNP
,/,
wishes/VBZ
Toni/NNP
had/VBD
a/DT
different/JJ
job/NN
./.
``/``
We/PRP
worry/VBP
about/IN
her/PRP
out/RB
there/RB
,/,
''/''
Cynthia/NNP
says/VBZ
./.
Last/JJ
Sunday/NNP
,/,
Ms./NNP
Johnson/NNP
finally/RB
got/VBD
a/DT
chance/NN
to/TO
water/VB
her/PRP$
plants/NNS
,/,
but/CC
stopped/VBD
abruptly/RB
./.
``/``
I/PRP
realized/VBD
I/PRP
could/MD
n't/RB
waste/VB
this/DT
water/NN
when/WRB
there/EX
are/VBP
people/NNS
in/IN
Watsonville/NNP
who/WP
do/VBP
n't/RB
have/VB
fresh/JJ
water/NN
to/TO
drink/VB
./.
''/''
She/PRP
has/VBZ
n't/RB
played/VBN
any/DT
music/NN
since/IN
the/DT
earthquake/NN
hit/VB
,/,
out/IN
of/IN
respect/NN
for/IN
those/DT
who/WP
died/VBD
on/IN
Interstate/NNP
880/CD
where/WRB
the/DT
roadway/NN
collapsed/VBD
./.
The/DT
Federal/NNP
Communications/NNPS
Commission/NNP
allowed/VBD
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
Co./NNP
to/TO
continue/VB
offering/VBG
discount/NN
phone/NN
services/NNS
for/IN
large-business/JJ
customers/NNS
and/CC
said/VBD
it/PRP
would/MD
soon/RB
re-examine/VB
its/PRP$
regulation/NN
of/IN
the/DT
long-distance/NN
market/NN
./.
The/DT
FCC/NNP
moves/NNS
were/VBD
good/JJ
news/NN
for/IN
AT&T/NNP
,/,
which/WDT
has/VBZ
been/VBN
striving/VBG
since/IN
the/DT
breakup/NN
of/IN
the/DT
phone/NN
system/NN
for/IN
greater/JJR
latitude/NN
in/IN
pricing/NN
and/CC
reduced/JJ
regulation/NN
./.
Alfred/NNP
Sikes/NNP
,/,
the/DT
new/JJ
FCC/NNP
chairman/NN
,/,
championed/VBD
deregulation/NN
of/IN
AT&T/NNP
at/IN
his/PRP$
last/JJ
job/NN
as/IN
head/NN
of/IN
a/DT
Commerce/NNP
Department/NNP
telecommunications/NN
agency/NN
./.
But/CC
it/PRP
has/VBZ
been/VBN
an/DT
open/JJ
question/NN
whether/IN
Mr./NNP
Sikes/NNP
,/,
an/DT
extraordinarily/RB
cautious/JJ
man/NN
,/,
would/MD
continue/VB
pushing/VBG
deregulation/NN
at/IN
the/DT
FCC/NNP
in/IN
the/DT
face/NN
of/IN
what/WP
is/VBZ
likely/JJ
to/TO
be/VB
great/JJ
political/JJ
pressure/NN
./.
``/``
It/PRP
means/VBZ
that/IN
Sikes/NNP
is/VBZ
serious/JJ
about/IN
the/DT
deregulation/NN
of/IN
long/JJ
distance/NN
,/,
''/''
said/VBD
Jack/NNP
Grubman/NNP
,/,
a/DT
telecommunications/NN
analyst/NN
at/IN
PaineWebber/NNP
Inc./NNP
,/,
who/WP
attended/VBD
the/DT
FCC/NNP
meeting/NN
./.
``/``
All/PDT
the/DT
commissioners/NNS
were/VBD
in/IN
amazing/JJ
agreement/NN
re-examine/VB
regulation/NN
a/DT
few/JJ
months/NNS
./.
''/''
The/DT
FCC/NNP
took/VBD
three/CD
specific/JJ
actions/NNS
regarding/VBG
AT&T/NNP
./.
By/IN
a/DT
4-0/JJ
vote/NN
,/,
it/PRP
allowed/VBD
AT&T/NNP
to/TO
continue/VB
offering/VBG
special/JJ
discount/NN
packages/NNS
to/TO
big/JJ
customers/NNS
,/,
called/VBD
Tariff/NN
12/CD
,/,
rejecting/VBG
appeals/NNS
by/IN
AT&T/NNP
competitors/NNS
that/IN
the/DT
discounts/NNS
were/VBD
illegal/JJ
./.
Then/RB
by/IN
a/DT
separate/JJ
4-0/JJ
vote/NN
,/,
it/PRP
chose/VBD
the/DT
narrowest/JJS
possible/JJ
grounds/NNS
to/TO
strike/VB
down/RP
a/DT
different/JJ
discount/NN
plan/NN
,/,
called/VB
Tariff/NN
15/VBN
,/,
that/IN
AT&T/NNP
offered/VBD
to/TO
Holiday/NNP
Corp/NNP
./.
AT&T/NNP
gave/VBD
a/DT
5/CD
%/NN
to/TO
10/CD
%/NN
discount/NN
to/TO
the/DT
Memphis/NNP
,/,
Tenn./NNP
,/,
company/NN
that/WDT
oversees/VBZ
Holiday/NNP
Inns/NNPS
,/,
in/IN
response/NN
to/TO
a/DT
similar/JJ
discount/NN
offered/VBD
to/TO
Holiday/NNP
Corp./NNP
by/IN
MCI/NNP
Communications/NNPS
Corp/NNP
./.
The/DT
agency/NN
said/VBD
that/IN
because/IN
MCI/NNP
's/POS
offer/NN
had/VBD
expired/VBN
AT&T/NNP
could/MD
n't/RB
continue/VB
to/TO
offer/VB
its/PRP$
discount/NN
plan/NN
./.
But/CC
the/DT
agency/NN
specifically/RB
did/VBD
n't/RB
rule/VB
whether/IN
AT&T/NNP
had/VBD
the/DT
right/NN
to/TO
match/VB
offers/NNS
by/IN
competitors/NNS
if/IN
that/DT
means/VBZ
giving/VBG
discounts/NNS
not/RB
generally/RB
available/JJ
to/TO
other/JJ
phone/NN
users/NNS
./.
Indeed/RB
,/,
Joe/NNP
Nacchio/NNP
,/,
AT&T/NNP
's/POS
vice/NN
president/NN
for/IN
business-communications/NNS
services/NNS
,/,
said/VBD
AT&T/NNP
offered/VBD
a/DT
similar/JJ
Tariff/NN
15/CD
discount/NN
to/TO
Resort/NNP
Condominium/NNP
International/NNP
,/,
of/IN
Indianapolis/NNP
,/,
to/TO
meet/VB
another/DT
MCI/NNP
bid/NN
./.
The/DT
FCC/NNP
``/``
did/VBD
n't/RB
say/VB
I/PRP
could/MD
n't/RB
do/VB
it/PRP
again/RB
,/,
''/''
he/PRP
said/VBD
./.
Apart/RB
from/IN
those/DT
two/CD
actions/NNS
,/,
Mr./NNP
Sikes/NNP
and/CC
the/DT
three/CD
other/JJ
commissioners/NNS
said/VBD
they/PRP
expect/VBP
to/TO
re-examine/VB
how/WRB
AT&T/NNP
is/VBZ
regulated/VBN
since/IN
competition/NN
has/VBZ
increased/VBN
./.
Richard/NNP
Firestone/NNP
,/,
chief/NN
of/IN
the/DT
FCC/NNP
's/POS
common-carrier/NN
bureau/NN
,/,
said/VBD
he/PRP
expected/VBD
the/DT
agency/NN
to/TO
propose/VB
new/JJ
rules/NNS
next/IN
year/NN
./.
AT&T/NNP
applauded/VBD
the/DT
FCC/NNP
's/POS
actions/NNS
./.
``/``
The/DT
time/NN
is/VBZ
long/RB
overdue/JJ
to/TO
take/VB
a/DT
look/NN
at/IN
the/DT
fierce/JJ
competition/NN
in/IN
the/DT
long-distance/NN
business/NN
and/CC
the/DT
rules/NNS
governing/VBG
it/PRP
,/,
''/''
the/DT
New/NNP
York/NNP
telecommunications/NN
firm/NN
said/VBD
in/IN
a/DT
statement/NN
./.
But/CC
MCI/NNP
,/,
of/IN
Washington/NNP
,/,
was/VBD
displeased/JJ
with/IN
the/DT
FCC/NNP
decision/NN
concerning/VBG
Tariff/NN
12/CD
,/,
arguing/VBG
that/IN
``/``
AT&T/NNP
can/MD
not/RB
be/VB
allowed/VBN
to/TO
flaunt/VB
FCC/NNP
rules/NNS
./.
''/''
United/NNP
Telecommunications/NNP
Inc./NNP
's/POS
US/PRP
Sprint/NNP
unit/NN
said/VBD
it/PRP
was/VBD
``/``
obviously/RB
disappointed/JJ
''/''
with/IN
the/DT
FCC/NNP
decision/NN
on/IN
Tariff/NN
12/CD
./.
US/PRP
Sprint/NNP
said/VBD
was/VBD
it/PRP
will/MD
petition/VB
the/DT
FCC/NNP
decision/NN
in/IN
federal/JJ
court/NN
./.
``/``
We/PRP
believe/VBP
that/IN
the/DT
court/NN
will/MD
find/VB
it/PRP
unlawful/JJ
,/,
''/''
said/VBD
a/DT
US/PRP
Sprint/NNP
spokesman/NN
./.
Separately/RB
,/,
AT&T/NNP
filed/VBD
a/DT
countersuit/NN
against/IN
MCI/NNP
accusing/VBG
it/PRP
of/IN
misleading/VBG
consumers/NNS
through/IN
allegedly/RB
``/``
false/JJ
and/CC
deceptive/JJ
''/''
advertising/NN
./.
The/DT
AT&T/NNP
action/NN
was/VBD
the/DT
most/RBS
recent/JJ
blow/NN
in/IN
a/DT
nasty/JJ
fight/NN
./.
Earlier/RBR
this/DT
month/NN
,/,
MCI/NNP
sued/VBD
AT&T/NNP
in/IN
federal/JJ
district/NN
court/NN
,/,
claiming/VBG
that/IN
AT&T/NNP
's/POS
ads/NNS
are/VBP
false/JJ
./.
AT&T/NNP
assembled/VBD
three/CD
of/IN
its/PRP$
top/JJ
executives/NNS
in/IN
Washington/NNP
,/,
all/RB
visibly/RB
angry/JJ
,/,
to/TO
try/VB
to/TO
refute/VB
MCI/NNP
's/POS
charges/NNS
./.
``/``
MCI/NNP
has/VBZ
made/VBN
hawks/NNS
out/IN
of/IN
the/DT
upper/JJ
echelon/NN
of/IN
AT&T/NNP
,/,
''/''
said/VBD
PaineWebber/NNP
's/POS
Mr./NNP
Grubman/NNP
,/,
who/WP
said/VBD
he/PRP
expected/VBD
AT&T/NNP
to/TO
become/VB
increasingly/RB
aggressive/JJ
in/IN
dealing/VBG
with/IN
its/PRP$
longtime/JJ
nemesis/NN
./.
Julie/NNP
Amparano/NNP
Lopez/NNP
in/IN
Philadelphia/NNP
also/RB
contributed/VBD
to/TO
this/DT
article/NN
./.
Billions/NNS
of/IN
investors/NNS
'/POS
dollars/NNS
are/VBP
pouring/VBG
out/IN
of/IN
the/DT
nation/NN
's/POS
junk-bond/NN
mutual/JJ
funds/NNS
,/,
undermining/VBG
a/DT
pillar/NN
of/IN
support/NN
in/IN
the/DT
already/RB
reeling/VBG
junk/NN
market/NN
./.
Last/JJ
week/NN
alone/RB
,/,
an/DT
eye-popping/JJ
$/$
1.6/CD
billion/CD
flowed/VBD
out/RB
of/IN
the/DT
junk/NN
funds/NNS
,/,
or/CC
nearly/RB
5/CD
%/NN
of/IN
their/PRP$
total/JJ
assets/NNS
,/,
according/VBG
to/TO
estimates/NNS
by/IN
Dalbar/NNP
Financial/NNP
Services/NNP
Inc./NNP
,/,
a/DT
Boston/NNP
research/NN
firm/NN
./.
In/IN
the/DT
past/JJ
two/CD
months/NNS
the/DT
nation/NN
's/POS
88/CD
junk/NN
funds/NNS
have/VBP
lost/VBN
a/DT
total/NN
of/IN
about/IN
$/$
6/CD
billion/CD
--/:
more/JJR
than/IN
15/CD
%/NN
of/IN
assets/NNS
--/:
through/IN
sales/NNS
or/CC
transfers/NNS
of/IN
junk-fund/NN
shares/NNS
,/,
Dalbar/NNP
says/VBZ
./.
It/PRP
made/VBD
the/DT
estimates/NNS
based/VBN
on/IN
data/NNS
collected/VBN
from/IN
more/JJR
than/IN
a/DT
dozen/NN
big/JJ
junk/NN
funds/NNS
./.
Interviews/NNS
with/IN
three/CD
major/JJ
fund/NN
groups/NNS
--/:
Fidelity/NNP
Investments/NNPS
,/,
Vanguard/NNP
Group/NNP
Inc./NNP
and/CC
T./NNP
Rowe/NNP
Price/NNP
Associates/NNPS
Inc./NNP
--/:
confirm/VBP
the/DT
trend/NN
./.
Their/PRP$
junk/NN
funds/NNS
combined/VBN
have/VBP
had/VBN
net/JJ
outflows/NNS
totaling/VBG
nearly/RB
$/$
500/CD
million/CD
,/,
or/CC
about/IN
13/CD
%/NN
of/IN
their/PRP$
junk/NN
fund/NN
assets/NNS
,/,
in/IN
the/DT
past/JJ
two/CD
months/NNS
./.
Some/DT
fund/NN
managers/NNS
say/VBP
negative/JJ
publicity/NN
has/VBZ
exacerbated/VBN
investors/NNS
'/POS
concern/NN
about/IN
recent/JJ
declines/NNS
in/IN
junk-bond/NN
prices/NNS
./.
``/``
People/NNS
have/VBP
been/VBN
seeing/VBG
headline/NN
after/IN
headline/NN
after/IN
headline/NN
and/CC
saying/VBG
:/:
`/``
I/PRP
ca/MD
n't/RB
take/VB
it/PRP
anymore/RB
--/:
I/PRP
'm/VBP
getting/VBG
out/RB
,/,
'/''
''/''
says/VBZ
Kurt/NNP
Brouwer/NNP
of/IN
Brouwer/NNP
&/CC
Janachowski/NNP
,/,
a/DT
San/NNP
Francisco/NNP
investment/NN
adviser/NN
./.
The/DT
withdrawals/NNS
could/MD
spell/VB
trouble/NN
for/IN
the/DT
$/$
200/CD
billion/CD
junk/NN
market/NN
./.
If/IN
the/DT
heavy/JJ
outflows/NNS
continue/VBP
,/,
fund/NN
managers/NNS
will/MD
face/VB
increasing/VBG
pressure/NN
to/TO
sell/VB
off/RP
some/DT
of/IN
their/PRP$
junk/NN
to/TO
pay/VB
departing/VBG
investors/NNS
in/IN
the/DT
weeks/NNS
ahead/RB
./.
Such/JJ
selling/NN
could/MD
erode/VB
prices/NNS
of/IN
high-yield/JJ
junk/NN
bonds/NNS
,/,
already/RB
weakened/VBN
by/IN
a/DT
rash/NN
of/IN
corporate/JJ
credit/NN
problems/NNS
./.
Mutual/JJ
fund/NN
groups/NNS
have/VBP
n't/RB
lost/VBN
control/NN
of/IN
much/RB
of/IN
the/DT
outgoing/JJ
money/NN
,/,
says/VBZ
Louis/NNP
Harvey/NNP
,/,
Dalbar/NNP
's/POS
president/NN
./.
Mutual/JJ
fund/NN
officials/NNS
say/VBP
that/IN
investors/NNS
have/VBP
transferred/VBN
most/JJS
of/IN
it/PRP
into/IN
their/PRP$
money/NN
market/NN
accounts/NNS
,/,
and/CC
to/TO
a/DT
lesser/JJR
extent/NN
,/,
government-bond/NN
funds/NNS
./.
So/CC
the/DT
impact/NN
on/IN
the/DT
$/$
950/CD
billion/CD
mutual/JJ
fund/NN
industry/NN
as/IN
a/DT
whole/NN
probably/RB
will/MD
be/VB
slight/JJ
./.
But/CC
tremors/NNS
are/VBP
likely/JJ
in/IN
the/DT
junk-bond/NN
market/NN
,/,
which/WDT
has/VBZ
helped/VBN
to/TO
finance/VB
the/DT
takeover/NN
boom/NN
of/IN
recent/JJ
years/NNS
./.
Mutual/JJ
funds/NNS
are/VBP
the/DT
among/IN
the/DT
largest/JJS
holders/NNS
of/IN
junk/NN
,/,
accounting/VBG
for/IN
more/JJR
than/IN
a/DT
quarter/NN
of/IN
the/DT
entire/JJ
high-yield/JJ
,/,
high-risk/JJ
market/NN
./.
The/DT
88/CD
mutual/JJ
funds/NNS
investing/VBG
solely/RB
in/IN
junk/NN
bonds/NNS
hold/VBP
assets/NNS
of/IN
about/IN
$/$
32/CD
billion/CD
./.
Other/JJ
funds/NNS
hold/VBP
a/DT
smattering/NN
of/IN
junk/NN
bonds/NNS
,/,
too/RB
./.
The/DT
$/$
1.5/CD
billion/CD
Fidelity/NNP
High/NNP
Income/NNP
Fund/NNP
has/VBZ
had/VBN
a/DT
net/JJ
outflow/NN
of/IN
about/IN
$/$
150/CD
million/CD
in/IN
the/DT
past/JJ
two/CD
months/NNS
./.
About/IN
$/$
60/CD
million/CD
streamed/VBD
out/IN
last/JJ
week/NN
alone/RB
,/,
double/JJ
the/DT
level/NN
of/IN
the/DT
week/NN
following/VBG
last/JJ
month/NN
's/POS
Campeau/NNP
Corp./NNP
credit/NN
squeeze/NN
./.
About/IN
98/CD
%/NN
of/IN
the/DT
outflow/NN
was/VBD
transferred/VBN
to/TO
other/JJ
Fidelity/NNP
funds/NNS
,/,
says/VBZ
Neal/NNP
Litvack/NNP
,/,
a/DT
Fidelity/NNP
vice/NN
president/NN
,/,
marketing/NN
,/,
with/IN
most/JJS
going/VBG
into/IN
money/NN
market/NN
funds/NNS
./.
``/``
You/PRP
get/VBP
a/DT
news/NN
item/NN
,/,
it/PRP
hits/VBZ
,/,
you/PRP
have/VBP
strong/JJ
redemptions/NNS
that/IN
day/NN
and/CC
for/IN
two/CD
days/NNS
following/VBG
--/:
then/RB
go/VBP
back/RB
to/TO
normal/JJ
,/,
''/''
says/VBZ
Mr./NNP
Litvack/NNP
./.
The/DT
fund/NN
,/,
with/IN
a/DT
cash/NN
cushion/NN
of/IN
more/JJR
than/IN
10/CD
%/NN
,/,
has/VBZ
``/``
met/VBN
all/PDT
the/DT
redemptions/NNS
without/IN
having/VBG
to/TO
sell/VB
one/CD
thing/NN
,/,
''/''
Mr./NNP
Litvack/NNP
says/VBZ
./.
He/PRP
adds/VBZ
:/:
``/``
Our/PRP$
fund/NN
has/VBZ
had/VBN
{/(
positive/JJ
net/JJ
sales/NNS
every/DT
month/NN
for/IN
the/DT
last/JJ
three/CD
years/NNS
--/:
until/IN
this/DT
month/NN
./.
''/''
Vanguard/NNP
's/POS
$/$
1/CD
billion/CD
High/NNP
Yield/NNP
Bond/NNP
Portfolio/NNP
has/VBZ
seen/VBN
$/$
161/CD
million/CD
flow/NN
out/RB
since/IN
early/JJ
September/NNP
;/:
$/$
14/CD
million/CD
of/IN
that/DT
seeped/VBD
out/RB
Friday/NNP
Oct./NNP
13/CD
alone/RB
./.
Still/RB
,/,
two-thirds/NNS
of/IN
the/DT
outflow/NN
has/VBZ
been/VBN
steered/VBN
into/IN
other/JJ
Vanguard/NNP
portfolios/NNS
,/,
says/VBZ
Brian/NNP
Mattes/NNP
,/,
a/DT
vice/NN
president/NN
./.
The/DT
fund/NN
now/RB
holds/VBZ
a/DT
cash/NN
position/NN
of/IN
about/IN
15/CD
%/NN
./.
At/IN
the/DT
$/$
932/CD
million/CD
T./NNP
Rowe/NNP
Price/NNP
High/NNP
Yield/NNP
Fund/NNP
,/,
investors/NNS
yanked/VBD
out/RP
about/IN
$/$
182/CD
million/CD
in/IN
the/DT
past/JJ
two/CD
months/NNS
./.
Those/DT
withdrawals/NNS
,/,
most/JJS
of/IN
which/WDT
were/VBD
transferred/VBN
to/TO
other/JJ
T./NNP
Rowe/NNP
Price/NNP
funds/NNS
,/,
followed/VBD
little/JJ
change/NN
in/IN
the/DT
fund/NN
's/POS
sales/NNS
picture/NN
this/DT
year/NN
through/IN
August/NNP
./.
``/``
The/DT
last/JJ
two/CD
months/NNS
have/VBP
been/VBN
the/DT
whole/JJ
ball/NN
game/NN
,/,
''/''
says/VBZ
Steven/NNP
Norwitz/NNP
,/,
a/DT
vice/NN
president/NN
./.
Junk-fund/NN
holders/NNS
have/VBP
barely/RB
broken/VBN
even/RB
this/DT
year/NN
,/,
as/IN
fat/JJ
interest/NN
payments/NNS
barely/RB
managed/VBD
to/TO
offset/VB
declining/VBG
prices/NNS
./.
Through/IN
Oct./NNP
19/CD
,/,
high-yield/JJ
funds/NNS
had/VBD
an/DT
average/JJ
0.85/CD
%/NN
total/JJ
return/NN
the/DT
price/NN
change/NN
plus/CC
dividends/NNS
on/IN
fund/NN
shares/NNS
Lipper/NNP
Analytical/NNP
Services/NNPS
Inc/NNP
./.
That/DT
's/VBZ
even/RB
less/JJR
than/IN
the/DT
4.35/CD
%/NN
total/JJ
return/NN
of/IN
the/DT
Merrill/NNP
Lynch/NNP
High-Yield/NNP
Index/NNP
./.
Fidelity/NNP
's/POS
junk/NN
fund/NN
has/VBZ
fallen/VBN
2.08/CD
%/NN
this/DT
year/NN
through/IN
Oct./NNP
19/CD
,/,
Lipper/NNP
says/VBZ
;/:
the/DT
Vanguard/NNP
fund/NN
rose/VBD
1.84/CD
%/NN
;/:
and/CC
the/DT
T./NNP
Rowe/NNP
Price/NNP
fund/NN
edged/VBD
up/RB
0.66/CD
%/NN
./.
People/NNS
who/WP
remain/VBP
in/IN
junk/NN
funds/NNS
now/RB
could/MD
get/VB
hit/VB
again/RB
,/,
some/DT
analysts/NNS
and/CC
fund/NN
specialists/NNS
say/VBP
./.
Many/JJ
funds/NNS
in/IN
recent/JJ
weeks/NNS
and/CC
months/NNS
have/VBP
been/VBN
selling/VBG
their/PRP$
highest-quality/JJ
junk/NN
issues/NNS
,/,
such/JJ
as/IN
RJR/NNP
Nabisco/NNP
,/,
to/TO
raise/VB
cash/NN
to/TO
meet/VB
expected/JJ
redemptions/NNS
./.
Funds/NNS
might/MD
be/VB
forced/VBN
to/TO
accept/VB
lower/JJR
prices/NNS
if/IN
they/PRP
expand/VBP
their/PRP$

selling/NN
to/TO
the/DT
securities/NNS
of/IN
less-creditworthy/JJ
borrowers/NNS
./.
And/CC
then/RB
,/,
asset/NN
values/NNS
of/IN
the/DT
funds/NNS
could/MD
plunge/VB
more/RBR
than/IN
they/PRP
have/VBP
so/RB
far/RB
./.
Says/VBZ
Michael/NNP
Hirsch/NNP
,/,
chief/JJ
investment/NN
officer/NN
of/IN
Republic/NNP
National/NNP
Bank/NNP
and/CC
manager/NN
of/IN
the/DT
FundTrust/NNP
Group/NNP
in/IN
New/NNP
York/NNP
:/:
``/``
It/PRP
's/VBZ
a/DT
time/NN
bomb/NN
just/RB
waiting/VBG
to/TO
go/VB
off/RP
./.
''/''
The/DT
surprise/NN
resignation/NN
yesterday/NN
of/IN
British/NNP
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
Nigel/NNP
Lawson/NNP
sent/VBD
sterling/NN
into/IN
a/DT
tailspin/NN
against/IN
the/DT
dollar/NN
by/IN
creating/VBG
uncertainties/NNS
about/IN
the/DT
direction/NN
of/IN
the/DT
British/JJ
economy/NN
./.
The/DT
U.S./NNP
unit/NN
also/RB
firmed/VBN
against/IN
other/JJ
currencies/NNS
on/IN
the/DT
back/NN
of/IN
sterling/NN
's/POS
tumble/NN
,/,
as/IN
market/NN
participants/NNS
switched/VBD
out/IN
of/IN
pounds/NNS
./.
The/DT
pound/NN
also/RB
dropped/VBD
precipitously/RB
against/IN
the/DT
mark/NN
,/,
falling/VBG
below/IN
the/DT
key/JJ
2.90-mark/JJ
level/NN
to/TO
2.8956/CD
marks/NNS
from/IN
2.9622/CD
marks/NNS
late/JJ
Wednesday/NNP
./.
Mr./NNP
Lawson/NNP
's/POS
resignation/NN
shocked/VBD
many/JJ
analysts/NNS
,/,
despite/IN
the/DT
recent/JJ
recurring/VBG
speculation/NN
of/IN
a/DT
rift/NN
between/IN
the/DT
chancellor/NN
and/CC
Prime/NNP
Minister/NNP
Margaret/NNP
Thatcher/NNP
./.
Indeed/RB
,/,
only/RB
hours/NNS
earlier/RB
,/,
Mrs./NNP
Thatcher/NNP
had/VBD
called/VBN
Mr./NNP
Lawson/NNP
's/POS
economic/JJ
policies/NNS
``/``
sound/JJ
''/''
and/CC
said/VBD
she/PRP
has/VBZ
``/``
always/RB
supported/VBN
''/''
him/PRP
./.
``/``
There/EX
was/VBD
a/DT
general/JJ
feeling/NN
that/IN
we/PRP
'd/MD
seen/VBN
the/DT
worst/JJS
,/,
''/''
said/VBD
Patrick/NNP
Foley/NNP
,/,
deputy/NN
chief/JJ
economic/JJ
adviser/NN
for/IN
Lloyds/NNP
Bank/NNP
in/IN
London/NNP
./.
``/``
The/DT
resignation/NN
came/VBD
as/IN
a/DT
great/JJ
surprise/NN
./.
''/''
Graham/NNP
Beale/NNP
,/,
manager/NN
of/IN
foreign-exchange/NN
operations/NNS
at/IN
Hong/NNP
Kong/NNP
&/CC
Shanghai/NNP
Banking/NNP
Corp./NNP
in/IN
New/NNP
York/NNP
,/,
added/VBD
that/IN
Mrs./NNP
Thatcher/NNP
's/POS
comments/NNS
reinforced/VBD
the/DT
market/NN
's/POS
growing/VBG
confidence/NN
about/IN
sterling/NN
and/CC
compounded/VBD
the/DT
unit/NN
's/POS
later/JJ
decline/NN
./.
``/``
The/DT
market/NN
was/VBD
caught/VBN
totally/RB
the/DT
wrong/JJ
way/NN
.../:
./.
Everyone/NN
was/VBD
extremely/RB
long/JJ
on/IN
sterling/NN
,/,
''/''
Mr./NNP
Beale/NNP
said/VBD
./.
In/IN
late/JJ
New/NNP
York/NNP
trading/NN
yesterday/NN
,/,
the/DT
dollar/NN
was/VBD
quoted/VBN
at/IN
1.8400/CD
marks/NNS
,/,
up/RB
from/IN
1.8353/CD
marks/NNS
late/JJ
Wednesday/NNP
,/,
and/CC
at/IN
142.10/CD
yen/NNS
,/,
up/RB
from/IN
141.52/CD
yen/NNS
late/JJ
Wednesday/NNP
./.
Sterling/NN
was/VBD
quoted/VBN
at/IN
$/$
1.5765/CD
,/,
sharply/RB
down/RB
from/IN
$/$
1.6145/CD
late/JJ
Wednesday/NNP
./.
In/IN
Tokyo/NNP
Friday/NNP
,/,
the/DT
U.S./NNP
currency/NN
opened/VBD
for/IN
trading/NN
at/IN
142.02/CD
yen/NNS
,/,
up/RB
from/IN
Thursday/NNP
's/POS
Tokyo/NNP
close/NN
of/IN
141.90/CD
yen/NNS
./.
Few/JJ
analysts/NNS
had/VBD
much/RB
good/JJ
to/TO
say/VB
about/IN
the/DT
pound/NN
's/POS
near-term/JJ
prospects/NNS
,/,
despite/IN
the/DT
fact/NN
that/WDT
most/JJS
do/VBP
n't/RB
anticipate/VB
a/DT
shift/NN
in/IN
Mrs./NNP
Thatcher/NNP
's/POS
economic/JJ
policies/NNS
./.
Mr./NNP
Foley/NNP
of/IN
Lloyds/NNP
noted/VBD
that/IN
Mr./NNP
Lawson/NNP
's/POS
replacement/NN
,/,
John/NNP
Major/NNP
,/,
the/DT
British/JJ
foreign/JJ
minister/NN
,/,
will/MD
take/VB
time/NN
to/TO
establish/VB
his/PRP$
credibility/NN
and/CC
,/,
in/IN
the/DT
meantime/NN
,/,
sterling/NN
could/MD
trend/VB
downward/RB
in/IN
volatile/JJ
trade/NN
./.
But/CC
Mr./NNP
Foley/NNP
predicted/VBD
few/JJ
economic/JJ
policy/NN
changes/NNS
ahead/RB
,/,
commenting/VBG
that/IN
Mr./NNP
Major/NNP
shares/VBZ
``/``
a/DT
very/RB
similar/JJ
view/NN
of/IN
the/DT
world/NN
''/''
with/IN
Mr./NNP
Lawson/NNP
./.
Bob/NNP
Chandross/NNP
,/,
chief/JJ
economist/NN
at/IN
Lloyds/NNP
Bank/NNP
in/IN
New/NNP
York/NNP
,/,
also/RB
noted/VBD
that/IN
the/DT
pound/NN
's/POS
sharp/JJ
decline/NN
is/VBZ
pegged/VBN
more/JJR
to/TO
uncertainty/NN
in/IN
the/DT
market/NN
than/IN
a/DT
vision/NN
of/IN
altered/JJ
United/NNP
Kingdom/NNP
economic/JJ
policies/NNS
./.
Unless/IN
Mr./NNP
Lawson/NNP
's/POS
resignation/NN
leads/VBZ
to/TO
a/DT
change/NN
in/IN
British/JJ
interest-rate/NN
policy/NN
--/:
Mrs./NNP
Thatcher/NNP
's/POS
administration/NN
firmly/RB
supports/VBZ
high/JJ
interest/NN
rates/NNS
to/TO
keep/VB
inflation/NN
in/IN
check/NN
--/:
or/CC
posturing/VBG
toward/IN
full/JJ
inclusion/NN
in/IN
the/DT
European/JJ
Monetary/NNP
System/NNP
's/POS
exchange-rate/NN
mechanism/NN
,/,
Mr./NNP
Lawson/NNP
's/POS
withdrawal/NN
will/MD
have/VB
little/JJ
long-term/JJ
impact/NN
on/IN
exchange/NN
rates/NNS
,/,
Mr./NNP
Chandross/NNP
concluded/VBD
./.
Also/RB
announcing/VBG
his/PRP$
resignation/NN
Thursday/NNP
was/VBD
Alan/NNP
Walters/NNP
,/,
Mrs./NNP
Thatcher/NNP
's/POS
economic/JJ
adviser/NN
and/CC
Mr./NNP
Lawson/NNP
's/POS
nemesis/NN
./.
The/DT
pound/NN
,/,
which/WDT
had/VBD
been/VBN
trading/VBG
at/IN
about/IN
$/$
1.6143/CD
in/IN
New/NNP
York/NNP
prior/RB
to/TO
Mr./NNP
Lawson/NNP
's/POS
announcement/NN
,/,
sank/VBD
more/JJR
than/IN
two/CD
cents/NNS
to/TO
$/$
1.5930/CD
,/,
prompting/VBG
the/DT
Federal/NNP
Reserve/NNP
Bank/NNP
to/TO
buy/VB
pounds/NNS
for/IN
dollars/NNS
./.
The/DT
Fed/NNP
's/POS
move/NN
,/,
however/RB
,/,
only/RB
proved/VBD
a/DT
stopgap/NN
to/TO
the/DT
pound/NN
's/POS
slide/NN
and/CC
the/DT
Fed/NNP
intervened/VBD
for/IN
a/DT
second/JJ
time/NN
at/IN
around/IN
$/$
1.5825/CD
,/,
according/VBG
to/TO
New/NNP
York/NNP
traders/NNS
./.
Meanwhile/RB
,/,
dollar/NN
trading/NN
was/VBD
relatively/RB
uninspired/JJ
throughout/IN
the/DT
session/NN
,/,
according/VBG
to/TO
dealers/NNS
,/,
who/WP
noted/VBD
that/IN
Thursday/NNP
's/POS
release/NN
of/IN
the/DT
preliminary/JJ
report/NN
on/IN
the/DT
U.S./NNP
third-quarter/JJ
gross/JJ
national/JJ
product/NN
was/VBD
something/NN
of/IN
a/DT
nonevent/NN
./.
U.S./NNP
GNP/NNP
rose/VBD
at/IN
an/DT
annual/JJ
rate/NN
of/IN
2.5/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
./.
The/DT
implicit/JJ
price/NN
deflator/NN
,/,
a/DT
measure/NN
of/IN
inflation/NN
,/,
was/VBD
down/RB
to/TO
a/DT
2.9/CD
%/NN
annual/JJ
rate/NN
of/IN
increase/NN
in/IN
the/DT
quarter/NN
from/IN
a/DT
4.6/CD
%/NN
rate/NN
of/IN
gain/NN
in/IN
the/DT
second/JJ
quarter/NN
./.
In/IN
Europe/NNP
,/,
the/DT
dollar/NN
ended/VBD
lower/RBR
in/IN
dull/JJ
trading/NN
./.
The/DT
market/NN
closed/VBD
prior/RB
to/TO
Mr./NNP
Lawson/NNP
's/POS
announcement/NN
./.
On/IN
the/DT
Commodity/NNP
Exchange/NNP
in/IN
New/NNP
York/NNP
,/,
gold/NN
for/IN
current/JJ
delivery/NN
rose/VBD
$/$
3.40/CD
to/TO
$/$
372.50/CD
an/DT
ounce/NN
in/IN
heavy/JJ
trading/NN
./.
The/DT
close/NN
was/VBD
the/DT
highest/JJS
since/IN
August/NNP
3/CD
./.
Estimated/VBN
volume/NN
was/VBD
five/CD
million/CD
ounces/NNS
./.
In/IN
early/RB
trading/NN
in/IN
Hong/NNP
Kong/NNP
Friday/NNP
,/,
gold/NN
was/VBD
quoted/VBN
at/IN
$/$
370.85/CD
an/DT
ounce/NN
./.
The/DT
following/JJ
issues/NNS
were/VBD
recently/RB
filed/VBN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
:/:
Anheuser-Busch/NNP
Cos./NNP
,/,
shelf/NN
offering/NN
of/IN
$/$
575/CD
million/CD
of/IN
debt/NN
securities/NNS
./.
Coca-Cola/NNP
Bottling/NNP
Co./NNP
Consolidated/NNP
,/,
shelf/NN
offering/NN
of/IN
$/$
200/CD
million/CD
of/IN
debt/NN
securities/NNS
,/,
via/IN
Salomon/NNP
Brothers/NNPS
Inc./NNP
and/CC
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
./.
First/NNP
Brands/NNPS
Corp./NNP
,/,
proposed/VBN
offering/NN
of/IN
6,475,000/CD
common/JJ
shares/NNS
,/,
of/IN
which/WDT
1,475,000/CD
common/JJ
shares/NNS
will/MD
be/VB
sold/VBN
by/IN
the/DT
company/NN
and/CC
five/CD
million/CD
shares/NNS
by/IN
holders/NNS
,/,
via/IN
First/JJ
Boston/NNP
Corp./NNP
and/CC
Credit/NNP
Suisse/NNP
First/NNP
Boston/NNP
Ltd/NNP
./.
Home/NNP
Nutritional/NNP
Services/NNPS
Inc./NNP
,/,
a/DT
wholly/RB
owned/JJ
subsidiary/NN
of/IN
Healthdyne/NNP
Inc./NNP
,/,
proposed/VBD
initial/JJ
offering/NN
of/IN
four/CD
million/CD
common/JJ
shares/NNS
,/,
of/IN
which/WDT
1.8/CD
million/CD
will/MD
be/VB
sold/VBN
by/IN
Home/NNP
Nutritional/NNP
Services/NNPS
and/CC
2.2/CD
million/CD
will/MD
be/VB
sold/VBN
by/IN
Healthdyne/NNP
,/,
via/IN
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
&/CC
Co/NNP
./.
Parametric/NNP
Technology/NNP
Corp./NNP
,/,
initial/JJ
public/JJ
offering/NN
of/IN
1.7/CD
million/CD
common/JJ
shares/NNS
,/,
of/IN
which/WDT
1,365,226/CD
will/MD
be/VB
offered/VBN
by/IN
the/DT
company/NN
and/CC
334,774/CD
will/MD
be/VB
offered/VBN
by/IN
holders/NNS
,/,
via/IN
Alex/NNP
./.
Brown/NNP
&/CC
Sons/NNPS
Inc./NNP
,/,
Hambrecht/NNP
&/CC
Quist/NNP
Inc./NNP
and/CC
Wessels/NNP
,/,
Arnold/NNP
&/CC
Henderson/NNP
./.
SynOptics/NNPS
Communications/NNPS
Inc./NNP
,/,
proposed/VBD
public/JJ
offering/NN
of/IN
1.5/CD
million/CD
common/JJ
shares/NNS
,/,
of/IN
which/WDT
1,003,884/CD
shares/NNS
are/VBP
to/TO
be/VB
sold/VBN
by/IN
the/DT
company/NN
and/CC
496,116/CD
shares/NNS
are/VBP
to/TO
be/VB
sold/VBN
by/IN
holders/NNS
,/,
via/IN
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
and/CC
Hambrecht/NNP
&/CC
Quist/NNP
./.
On/IN
an/DT
office/NN
wall/NN
of/IN
the/DT
Senate/NNP
intelligence/NN
committee/NN
hangs/VBZ
a/DT
quote/NN
from/IN
Chairman/NNP
David/NNP
Boren/NNP
,/,
``/``
Do/VBP
n't/RB
hold/VB
your/PRP$
ticket/NN
'til/IN
the/DT
show/NN
's/VBZ
over/RP
./.
''/''
He/PRP
once/RB
used/VBD
that/DT
line/NN
in/IN
a/DT
closed-door/JJ
meeting/NN
on/IN
Panama/NNP
,/,
meaning/NN
do/VBP
n't/RB
shrink/VB
from/IN
taking/VBG
action/NN
against/IN
Manuel/NNP
Noriega/NNP
./.
So/RB
how/WRB
did/VBD
a/DT
good/JJ
senator/NN
like/IN
this/DT
end/NN
up/RB
approving/VBG
a/DT
policy/NN
that/WDT
required/VBD
the/DT
U.S./NNP
to/TO
warn/VB
Mr./NNP
Noriega/NNP
of/IN
any/DT
coup/NN
plot/NN
against/IN
him/PRP
?/.
``/``
I/PRP
agree/VBP
,/,
it/PRP
's/VBZ
ridiculous/JJ
,/,
''/''
says/VBZ
Mr./NNP
Boren/NNP
,/,
and/CC
indeed/RB
by/IN
now/RB
ridiculous/JJ
may/MD
be/VB
the/DT
only/JJ
way/NN
to/TO
describe/VB
how/WRB
the/DT
U.S./NNP
decides/VBZ
to/TO
take/VB
--/:
or/CC
rather/RB
,/,
not/RB
to/TO
take/VB
--/:
covert/JJ
action/NN
./.
George/NNP
Bush/NNP
disclosed/VBD
the/DT
policy/NN
last/JJ
week/NN
by/IN
reading/VBG
it/PRP
to/TO
GOP/NNP
senators/NNS
,/,
perhaps/RB
as/IN
a/DT
way/NN
of/IN
shifting/VBG
blame/NN
for/IN
the/DT
Panama/NNP
fiasco/NN
to/TO
Congress/NNP
./.
But/CC
the/DT
broader/JJR
truth/NN
is/VBZ
more/RBR
complicated/JJ
--/:
and/CC
dismaying/JJ
./.
The/DT
policy/NN
was/VBD
contained/VBN
in/IN
an/DT
exchange/NN
of/IN
letters/NNS
last/JJ
October/NNP
between/IN
the/DT
Senate/NNP
intelligence/NN
committee/NN
and/CC
the/DT
CIA/NNP
and/CC
National/NNP
Security/NNP
Council/NNP
./.
Staff/NN
lawyers/NNS
for/IN
both/DT
sides/NNS
were/VBD
busy/JJ
agreeing/VBG
with/IN
one/NN
another/DT
about/IN
what/WP
the/DT
U.S./NNP
could/MD
not/RB
do/VB
to/TO
oust/VB
the/DT
Panamanian/JJ
thug/NN
./.
They/PRP
simply/RB
got/VBD
carried/VBN
away/RB
with/IN
interpreting/VBG
what/WP
the/DT
executive/NN
order/NN
banning/VBG
assassinations/NNS
really/RB
meant/VBN
./.
Mr./NNP
Boren/NNP
himself/PRP
did/VBD
n't/RB
discover/VB
the/DT
warn-your-enemy/JJ
nuance/NN
until/IN
Mr./NNP
Bush/NNP
told/VBD
him/PRP
privately/RB
at/IN
the/DT
White/NNP
House/NNP
last/JJ
week/NN
./.
It/PRP
's/VBZ
ironic/JJ
that/IN
David/NNP
Boren/NNP
should/MD
be/VB
in/IN
the/DT
center/NN
of/IN
this/DT
mire/NN
./.
A/DT
former/JJ
Oklahoma/NNP
governor/NN
,/,
he/PRP
's/VBZ
a/DT
thoughtful/JJ
defender/NN
of/IN
presidential/JJ
powers/NNS
in/IN
foreign/JJ
policy/NN
./.
He/PRP
's/VBZ
a/DT
rare/JJ
Democratic/JJ
hawk/NN
./.
He/PRP
's/VBZ
the/DT
senator/NN
most/JJS
like/IN
Arthur/NNP
Vandenberg/NNP
,/,
the/DT
GOP/NNP
senator/NN
from/IN
Michigan/NNP
who/WP
worked/VBD
to/TO
forge/VB
a/DT
bipartisan/JJ
foreign/JJ
policy/NN
in/IN
the/DT
1940s/NNS
./.
``/``
Vandenberg/NNP
and/CC
Rayburn/NNP
are/VBP
heroes/NNS
of/IN
mine/NN
,/,
''/''
Mr./NNP
Boren/NNP
says/VBZ
,/,
referring/VBG
as/RB
well/RB
to/TO
Sam/NNP
Rayburn/NNP
,/,
the/DT
Democratic/JJ
House/NNP
speaker/NN
who/WP
cooperated/VBD
with/IN
President/NNP
Eisenhower/NNP
./.
``/``
They/PRP
allowed/VBD
this/DT
country/NN
to/TO
be/VB
credible/JJ
./.
I/PRP
really/RB
want/VBP
to/TO
see/VB
that/DT
happen/VB
again/RB
./.
''/''
If/IN
this/DT
were/VBD
1949/CD
,/,
Mr./NNP
Boren/NNP
might/MD
even/RB
succeed/VB
./.
But/CC
in/IN
1989/CD
most/JJS
senators/NNS
have/VBP
other/JJ
ideas/NNS
./.
Last/JJ
July/NNP
,/,
his/PRP$
committee/NN
rejected/VBD
a/DT
Reagan/NNP
administration/NN
plan/NN
to/TO
support/VB
a/DT
coup/NN
in/IN
Panama/NNP
./.
Ohio/NNP
Democrat/NNP
Howard/NNP
Metzenbaum/NNP
refused/VBD
to/TO
support/VB
any/DT
plan/NN
that/WDT
might/MD
get/VB
people/NNS
hurt/JJ
,/,
a/DT
charming/JJ
notion/NN
for/IN
a/DT
great/JJ
power/NN
./.
Maine/NNP
Republican/NNP
William/NNP
Cohen/NNP
said/VBD
the/DT
plan/NN
might/MD
violate/VB
the/DT
assassination/NN
ban/NN
./.
So/RB
the/DT
administration/NN
dropped/VBD
it/PRP
./.
By/IN
October/NNP
,/,
when/WRB
the/DT
committee/NN
rejected/VBD
a/DT
much/RB
more/RBR
modest/JJ
covert/JJ
proposal/NN
,/,
even/RB
the/DT
administration/NN
was/VBD
agreeing/VBG
little/JJ
should/MD
be/VB
done/VBN
./.
Mr./NNP
Boren/NNP
does/VBZ
n't/RB
think/VB
all/PDT
this/DT
influenced/VBD
the/DT
failed/VBN
coup/NN
this/DT
month/NN
,/,
but/CC
he/PRP
does/VBZ
concede/VB
that/IN
Congress/NNP
has/VBZ
made/VBN
mistakes/NNS
./.
``/``
In/IN
the/DT
aftermath/NN
of/IN
Vietnam/NNP
,/,
in/IN
the/DT
aftermath/NN
of/IN
Iran-Contra/NNP
,/,
I/PRP
can/MD
understand/VB
some/DT
people/NNS
might/MD
think/VB
that/IN
if/IN
they/PRP
plan/VBP
a/DT
coup/NN
,/,
they/PRP
have/VBP
to/TO
bring/VB
their/PRP$
lawyers/NNS
,/,
''/''
he/PRP
says/VBZ
./.
But/CC
even/RB
Mr./NNP
Boren/NNP
defends/VBZ
congressional/JJ
oversight/NN
./.
Writing/VBG
in/IN
the/DT
Harvard/NNP
International/NNP
Review/NNP
,/,
he/PRP
says/VBZ
that/IN
his/PRP$
committee/NN
approves/VBZ
covert/JJ
operations/NNS
only/RB
when/WRB
there/EX
's/VBZ
a/DT
``/``
consensus/NN
./.
''/''
So/RB
what/WP
does/VBZ
consensus/NN
mean/VB
?/.
``/``
It/PRP
does/VBZ
n't/RB
mean/VB
unanimous/JJ
,/,
''/''
he/PRP
insists/VBZ
,/,
though/IN
he/PRP
implies/VBZ
it/PRP
means/VBZ
a/DT
bipartisan/JJ
majority/NN
./.
``/``
The/DT
sustainability/NN
of/IN
U.S./NNP
foreign/JJ
policy/NN
is/VBZ
essential/JJ
,/,
''/''
he/PRP
explains/VBZ
./.
``/``
Why/WRB
was/VBD
containment/NN
so/RB
successful/JJ
?/.
Because/IN
it/PRP
had/VBD
bipartisan/JJ
support/NN
./.
''/''
Mr./NNP
Boren/NNP
is/VBZ
confusing/VBG
consensus/NN
on/IN
general/JJ
principles/NNS
with/IN
agreement/NN
on/IN
specific/JJ
actions/NNS
./.
Elliott/NNP
Abrams/NNP
,/,
a/DT
veteran/NN
of/IN
intelligence/NN
committee/NN
debates/NNS
,/,
doubts/NNS
that/WDT
even/RB
Grenada/NNP
or/CC
the/DT
Libyan/JJ
raid/NN
would/MD
have/VB
taken/VBN
place/NN
if/IN
``/``
consensus/NN
''/''
had/VBD
been/VBN
required/VBN
./.
Vandenberg/NNP
and/CC
Rayburn/NNP
were/VBD
wise/JJ
enough/RB
to/TO
leave/VB
specific/JJ
operations/NNS
to/TO
presidents/NNS
;/:
modern/JJ
senators/NNS
,/,
Mr./NNP
Boren/NNP
notwithstanding/IN
,/,
are/VBP
less/RBR
modest/JJ
./.
The/DT
result/NN
is/VBZ
that/IN
the/DT
Senate/NNP
committee/NN
has/VBZ
what/WP
amounts/VBZ
to/TO
veto/NN
power/NN
over/IN
every/DT
covert/JJ
action/NN
./.
``/``
I/PRP
would/MD
n't/RB
say/VB
it/PRP
's/VBZ
quite/RB
a/DT
veto/NN
,/,
''/''
Mr./NNP
Boren/NNP
demurs/VBZ
./.
But/CC
would/MD
n't/RB
a/DT
president/NN
who/WP
acted/VBD
despite/IN
Senate/NNP
objections/NNS
be/VB
taking/VBG
grave/JJ
political/JJ
risks/NNS
?/.
``/``
He/PRP
would/MD
,/,
''/''
agrees/VBZ
the/DT
chairman/NN
./.
``/``
But/CC
that/DT
is/VBZ
something/NN
the/DT
president/NN
ought/MD
to/TO
know/VB
before/IN
he/PRP
goes/VBZ
ahead/RB
./.
''/''
Mr./NNP
Boren/NNP
even/RB
spies/VBZ
a/DT
silver/JJ
lining/NN
./.
He/PRP
figures/VBZ
the/DT
episode/NN
will/MD
help/VB
``/``
clarify/VB
any/DT
ambiguities/NNS
''/''
between/IN
the/DT
committee/NN
and/CC
administration/NN
./.
He/PRP
points/VBZ
to/TO
a/DT
letter/NN
on/IN
his/PRP$
desk/NN
,/,
his/PRP$
second/JJ
in/IN
a/DT
week/NN
from/IN
President/NNP
Bush/NNP
,/,
saying/VBG
that/IN
they/PRP
``/``
do/VBP
n't/RB
disagree/VB
./.
''/''
More/RBR
broadly/RB
,/,
Mr./NNP
Boren/NNP
hopes/VBZ
that/IN
Panama/NNP
will/MD
shock/VB
Washington/NNP
out/IN
of/IN
its/PRP$
fear/NN
of/IN
using/VBG
military/JJ
power/NN
./.
``/``
Maybe/RB
this/DT
will/MD
jolt/VB
us/PRP
out/IN
of/IN
the/DT
post-Vietnam/JJ
syndrome/NN
that/IN
we/PRP
never/RB
are/VBP
prepared/JJ
to/TO
use/VB
force/NN
,/,
''/''
he/PRP
says/VBZ
./.
Maybe/RB
--/:
if/IN
every/DT
senator/NN
shared/VBD
the/DT
principles/NNS
of/IN
Mr./NNP
Boren/NNP
./.
But/CC
it/PRP
's/VBZ
just/RB
as/RB
plausible/JJ
to/TO
argue/VB
that/IN
if/IN
even/RB
David/NNP
Boren/NNP
can/MD
get/VB
mired/VBN
in/IN
this/DT
sort/NN
of/IN
mess/NN
,/,
the/DT
problem/NN
goes/VBZ
beyond/IN
legal/JJ
interpretation/NN
./.
Maybe/RB
the/DT
problem/NN
is/VBZ
a/DT
political/JJ
system/NN
that/WDT
wo/MD
n't/RB
act/VB
without/IN
an/DT
``/``
exchange/NN
of/IN
letters/NNS
,/,
''/''
that/WDT
insists/VBZ
on/IN
running/VBG
foreign/JJ
policy/NN
by/IN
committee/NN
,/,
that/WDT
treats/VBZ
a/DT
president/NN
as/RB
just/RB
another/DT
guy/NN
at/IN
the/DT
table/NN
./.
The/DT
reply/NN
of/IN
the/DT
Metzenbaums/NNPS
and/CC
Cohens/NNPS
is/VBZ
that/IN
we/PRP
ca/MD
n't/RB
abolish/VB
these/DT
oversight/NN
committees/NNS
because/IN
we/PRP
've/VBP
seen/VBN
too/RB
many/JJ
abuses/NNS
of/IN
executive/NN
power/NN
./.
But/CC
Panama/NNP
illustrates/VBZ
that/IN
their/PRP$
substitute/NN
is/VBZ
a/DT
system/NN
that/WDT
produces/VBZ
an/DT
absurd/JJ
gridlock/NN
./.
The/DT
lawyers/NNS
are/VBP
now/RB
in/IN
charge/NN
of/IN
our/PRP$
national/JJ
security/NN
./.
In/IN
Panama/NNP
,/,
the/DT
U.S./NNP
interests/NNS
at/IN
stake/NN
were/VBD
happily/RB
minor/JJ
;/:
the/DT
only/JJ
people/NNS
killed/VBN
were/VBD
foreigners/NNS
hapless/JJ
enough/RB
to/TO
trust/VB
American/JJ
will/NN
./.
Americans/NNPS
may/MD
not/RB
be/VB
so/RB
lucky/JJ
the/DT
next/JJ
time/NN
./.
I/PRP
was/VBD
impressed/JJ
by/IN
the/DT
perceptiveness/NN
of/IN
your/PRP$
Sept./NNP
12/CD
story/NN
``/``
Rural/JJ
Enterprise/NN
:/:
Tough/JJ
Row/NNP
To/TO
Hoe/VB
./.
''/''
We/PRP
lived/VBD
in/IN
rural/JJ
areas/NNS
many/JJ
years/NNS
,/,
but/CC
now/RB
live/VBP
in/IN
St./NNP
Louis/NNP
County/NNP
,/,
Mo/NNP
./.
This/DT
morning/NN
as/IN
I/PRP
drove/VBD
the/DT
13/CD
miles/NNS
to/TO
my/PRP$
law/NN
office/NN
and/CC
endured/VBD
the/DT
routine/JJ
heavy/JJ
traffic/NN
during/IN
that/DT
twice-daily/JJ
journey/NN
,/,
I/PRP
thought/VBD
of/IN
how/WRB
fortunate/JJ
it/PRP
was/VBD
that/IN
we/PRP
made/VBD
the/DT
decision/NN
to/TO
be/VB
residents/NNS
of/IN
an/DT
expanding/VBG
community/NN
with/IN
so/RB
many/JJ
opportunities/NNS
and/CC
where/WRB
so/RB
much/JJ
is/VBZ
happening/VBG
./.
The/DT
presence/NN
of/IN
so/RB
many/JJ
people/NNS
,/,
cars/NNS
and/CC
competing/VBG
businesses/NNS
is/VBZ
evidence/NN
of/IN
a/DT
healthy/JJ
economy/NN
in/IN
a/DT
place/NN
where/WRB
people/NNS
want/VBP
to/TO
live/VB
./.
I/PRP
thought/VBD
back/RB
to/TO
our/PRP$
time/NN
in/IN
small/JJ
,/,
sparsely/RB
populated/JJ
communities/NNS
./.
I/PRP
remembered/VBD
how/WRB
hard/JJ
it/PRP
was/VBD
for/IN
an/DT
outsider/NN
to/TO
become/VB
accepted/VBN
by/IN
long-established/JJ
,/,
stake-holding/JJ
residents/NNS
,/,
and/CC
what/WDT
pitfalls/NNS
awaited/VBD
an/DT
original/JJ
thinker/NN
in/IN
societies/NNS
that/WDT
were/VBD
long/RB
accustomed/JJ
to/TO
unchanging/JJ
,/,
``/``
safe/JJ
''/''
ways/NNS
of/IN
thought/NN
and/CC
action/NN
./.
I/PRP
remembered/VBD
being/VBG
fired/VBN
at/IN
age/NN
44/CD
,/,
with/IN
five/CD
children/NNS
at/IN
home/NN
,/,
when/WRB
my/PRP$
views/NNS
and/CC
actions/NNS
were/VBD
deemed/VBN
unsettling/JJ
by/IN
a/DT
timid/JJ
,/,
small-town/JJ
employer/NN
./.
How/WRB
difficult/JJ
it/PRP
is/VBZ
for/IN
a/DT
thinking/VBG
person/NN
to/TO
live/VB
among/IN
societies/NNS
rooted/VBN
in/IN
the/DT
past/NN
./.
Now/RB
,/,
I/PRP
revel/VBP
in/IN
the/DT
freedom/NN
,/,
culture/NN
,/,
activity/NN
and/CC
diversity/NN
of/IN
this/DT
great/JJ
metropolitan/JJ
area/NN
with/IN
its/PRP$
traffic/NN
jams/NNS
and/CC
perpetual/JJ
road-building/NN
projects/NNS
./.
Yet/RB
when/WRB
my/PRP$
youngest/JJS
child/NN
died/VBD
two/CD
years/NNS
ago/RB
,/,
I/PRP
buried/VBD
him/PRP
in/IN
the/DT
church/NN
cemetery/NN
of/IN
a/DT
small/JJ
Missouri/NNP
town/NN
./.
So/RB
after/IN
all/DT
,/,
even/RB
the/DT
bitterest/JJS
critic/NN
of/IN
rural/JJ
exclusivity/NN
harbors/VBZ
a/DT
continuing/VBG
yearning/NN
for/IN
those/DT
scarce/JJ
,/,
rural/JJ
virtues/NNS
thought/VBN
to/TO
exist/VB
amid/IN
fields/NNS
,/,
forests/NNS
and/CC
country/NN
lanes/NNS
./.
Ronald/NNP
Edwin/NNP
Parsons/NNP
Ballwin/NNP
,/,
Mo/NNP
./.
Finnish/JJ
government/NN
officials/NNS
are/VBP
negotiating/VBG
with/IN
creditors/NNS
of/IN
Waertsilae/NNP
Marine/NNP
Oy/NNP
,/,
a/DT
major/JJ
shipyard/NN
that/WDT
filed/VBD
for/IN
bankruptcy/NN
protection/NN
this/DT
week/NN
,/,
amid/IN
confusion/NN
and/CC
mounting/VBG
doubts/NNS
that/IN
collapse/NN
of/IN
the/DT
nation/NN
's/POS
entire/JJ
shipbuilding/NN
industry/NN
can/MD
be/VB
averted/VBN
./.
At/IN
stake/NN
are/VBP
almost/RB
10,000/CD
jobs/NNS
in/IN
an/DT
industry/NN
that/WDT
has/VBZ
been/VBN
the/DT
mainstay/NN
of/IN
Finland/NNP
's/POS
post-war/JJ
economic/JJ
revival/NN
./.
Shipbuilding/NN
became/VBD
a/DT
point/NN
of/IN
pride/NN
as/IN
Finnish/JJ
shipyards/NNS
remained/VBD
profitable/JJ
long/RB
after/IN
rivals/NNS
collapsed/VBD
all/DT
over/IN
Europe/NNP
./.
But/CC
if/IN
,/,
as/IN
many/JJ
now/RB
fear/VBP
,/,
Waertsilae/NNP
Marine/NNP
joins/VBZ
the/DT
ranks/NNS
of/IN
failed/VBN
shipyards/NNS
it/PRP
might/MD
turn/VB
out/IN
to/TO
be/VB
remembered/VBN
most/RBS
as/IN
a/DT
blemish/NN
on/IN
Finland/NNP
's/POS
international/JJ
reputation/NN
./.
The/DT
shipyard/NN
's/POS
6.5/CD
billion/CD
Finnish/JJ
markka/FW
$/$
1.54/CD
billion/CD
backlog/NN
includes/VBZ
about/IN
20/CD
ships/NNS
ordered/VBN
by/IN
big/JJ
international/JJ
shippers/NNS
,/,
including/VBG
three/CD
for/IN
Carnival/NNP
Cruise/NNP
Lines/NNPS
Inc/NNP
./.
Miami-based/JJ
Carnival/NNP
said/VBD
the/DT
first/JJ
of/IN
the/DT
three/CD
ships/NNS
is/VBZ
scheduled/VBN
to/TO
be/VB
delivered/VBN
next/JJ
month/NN
,/,
just/RB
in/IN
time/NN
for/IN
the/DT
winter/NN
tourist/NN
season/NN
in/IN
the/DT
Caribbean/NNP
./.
The/DT
second/JJ
ship/NN
is/VBZ
scheduled/VBN
to/TO
be/VB
delivered/VBN
in/IN
fall/NN
1990/CD
and/CC
the/DT
third/JJ
in/IN
fall/NN
1991/CD
./.
One/CD
analyst/NN
said/VBD
the/DT
first/JJ
ship/NN
probably/RB
will/MD
be/VB
delivered/VBN
close/RB
to/TO
schedule/NN
,/,
but/CC
that/IN
Carnival/NNP
may/MD
have/VB
to/TO
pay/VB
up/RB
to/TO
25/CD
%/NN
more/JJR
to/TO
get/VB
the/DT
second/JJ
and/CC
third/JJ
ships/NNS
./.
All/PDT
the/DT
ships/NNS
are/VBP
covered/VBN
by/IN
loan/NN
guarantees/NNS
from/IN
a/DT
state/NN
export/NN
financing/VBG
agency/NN
,/,
even/RB
though/IN
it/PRP
's/VBZ
not/RB
clear/JJ
whether/IN
they/PRP
will/MD
actually/RB
be/VB
built/VBN
./.
Bankers/NNS
worry/VBP
that/IN
if/IN
the/DT
government/NN
makes/VBZ
good/RB
a/DT
threat/NN
to/TO
withdraw/VB
its/PRP$
guarantee/NN
commitments/NNS
,/,
shippers/NNS
will/MD
counter/VB
with/IN
a/DT
hail/NN
of/IN
lawsuits/NNS
./.
State/NN
loan/NN
guarantees/NNS
are/VBP
rarely/RB
a/DT
source/NN
of/IN
controversy/NN
./.
However/RB
,/,
some/DT
bankers/NNS
cited/VBD
possible/JJ
parallels/NNS
between/IN
the/DT
Waertsilae/NNP
Marine/NNP
case/NN
and/CC
the/DT
collapse/NN
of/IN
Norway/NNP
's/POS
state-owned/JJ
Kongsberg/NNP
Vappenfabrikk/NNP
AS/NNP
two/CD
years/NNS
ago/RB
./.
In/IN
that/DT
case/NN
,/,
international/JJ
banks/NNS
and/CC
investors/NNS
incurred/VBD
big/JJ
losses/NNS
because/IN
they/PRP
incorrectly/RB
believed/VBD
the/DT
company/NN
's/POS
debt/NN
carried/VBD
implicit/JJ
state/NN
guarantees/NNS
./.
Doubts/NNS
about/IN
the/DT
quality/NN
of/IN
state/NN
credit/NN
guarantees/NNS
could/MD
reduce/VB
the/DT
competitive/JJ
strength/NN
of/IN
Finnish/JJ
companies/NNS
in/IN
world/NN
markets/NNS
where/WRB
financing/NN
often/RB
is/VBZ
the/DT
key/NN
to/TO
winning/VBG
orders/NNS
,/,
analysts/NNS
warn/VBP
./.
Moreover/RB
,/,
state-owned/JJ
Finnish/JJ
companies/NNS
lacking/VBG
formal/JJ
state/NN
guarantees/NNS
could/MD
face/VB
greater/JJR
difficulty/NN
raising/VBG
funds/NNS
in/IN
international/JJ
financial/JJ
markets/NNS
,/,
bankers/NNS
say/VBP
./.
The/DT
decision/NN
by/IN
a/DT
majority/NN
of/IN
state-appointed/JJ
Waertsilae/NNP
Marine/NNP
directors/NNS
Monday/NNP
to/TO
file/VB
for/IN
bankruptcy/NN
was/VBD
an/DT
abrupt/JJ
about-face/NN
from/IN
previous/JJ
government/NN
policy/NN
./.
In/IN
August/NNP
,/,
the/DT
government/NN
played/VBD
a/DT
major/JJ
part/NN
in/IN
a/DT
sweeping/JJ
restructuring/NN
of/IN
the/DT
troubled/JJ
shipyard/NN
./.
At/IN
the/DT
time/NN
71%-controlled/JJ
by/IN
Oy/NNP
Waertsilae/NNP
,/,
a/DT
conglomerate/NN
,/,
the/DT
shipbuilding/NN
unit/NN
faced/VBD
potential/JJ
losses/NNS
estimated/VBN
at/IN
one/CD
billion/CD
markka/NNS
and/CC
was/VBD
on/IN
the/DT
brink/NN
of/IN
liquidation/NN
./.
Under/IN
the/DT
rescue/NN
plan/NN
,/,
Waertsilae/NNP
sold/VBD
51/CD
%/NN
of/IN
its/PRP$
stake/NN
to/TO
a/DT
group/NN
of/IN
banks/NNS
and/CC
pension/NN
funds/NNS
./.
The/DT
government/NN
,/,
in/IN
turn/NN
,/,
guaranteed/VBD
financing/NN
to/TO
complete/VB
the/DT
order/NN
backlog/NN
and/CC
took/VBD
control/NN
of/IN
the/DT
board/NN
./.
Government/NN
officials/NNS
were/VBD
expected/VBN
to/TO
combine/VB
Waertsilae/NNP
Marine/NNP
with/IN
two/CD
other/JJ
struggling/VBG
firms/NNS
,/,
and/CC
thus/RB
ensure/VB
Finland/NNP
's/POS
survival/NN
as/IN
a/DT
shipbuilding/NN
nation/NN
./.
The/DT
government/NN
spent/VBD
most/JJS
of/IN
last/JJ
year/NN
attempting/VBG
to/TO
carry/VB
out/RP
such/JJ
a/DT
plan/NN
but/CC
was/VBD
thwarted/VBN
when/WRB
the/DT
parent/NN
Waertsilae/NNP
concern/NN
pulled/VBD
out/RB
at/IN
the/DT
last/JJ
minute/NN
./.
After/IN
the/DT
restructuring/NN
of/IN
Waertsilae/NNP
Marine/NNP
and/CC
bolstered/VBN
by/IN
state/NN
loan/NN
guarantees/NNS
,/,
two/CD
big/JJ
bank/NN
creditors/NNS
,/,
Union/NNP
Bank/NNP
of/IN
Finland/NNP
and/CC
state-controlled/JJ
Postipankki/NNP
,/,
resumed/VBD
lending/NN
the/DT
shipyard/NN
working/NN
capital/NN
./.
But/CC
the/DT
bankers/NNS
got/VBD
cold/JJ
feet/NNS
recently/RB
as/IN
government/NN
officials/NNS
complained/VBD
they/PRP
had/VBD
been/VBN
misled/VBN
about/IN
the/DT
shipyard/NN
's/POS
actual/JJ
financial/JJ
condition/NN
,/,
and/CC
hinted/VBD
the/DT
credit/NN
guarantees/NNS
might/MD
be/VB
withdrawn/VBN
./.
People/NNS
familiar/JJ
with/IN
Monday/NNP
's/POS
board/NN
meeting/NN
said/VBD
it/PRP
was/VBD
the/DT
state/NN
's/POS
refusal/NN
to/TO
explicitly/RB
reaffirm/VB
the/DT
credit/NN
guarantees/NNS
that/WDT
led/VBD
Union/NNP
Bank/NNP
and/CC
Postipankki/NNP
to/TO
halt/VB
lending/VBG
to/TO
Waertsilae/NNP
Marine/NNP
./.
Then/RB
,/,
in/IN
a/DT
boardroom/NN
showdown/NN
,/,
state-appointed/JJ
directors/NNS
voted/VBD
to/TO
file/VB
for/IN
bankruptcy/NN
,/,
apparently/RB
under/IN
instructions/NNS
from/IN
Finland/NNP
's/POS
Industry/NNP
Minister/NNP
Ilkka/NNP
Suominen/NNP
./.
Analysts/NNS
say/VBP
Mr./NNP
Suominen/NNP
had/VBD
grown/VBN
increasingly/RB
worried/JJ
about/IN
the/DT
state/NN
's/POS
potential/JJ
financial/JJ
exposure/NN
as/IN
Waertsilae/NNP
Marine/NNP
's/POS
losses/NNS
ballooned/VBD
to/TO
more/RBR
than/IN
double/JJ
the/DT
figure/NN
estimated/VBN
in/IN
August/NNP
./.
Noting/VBG
that/DT
Sweden/NNP
wound/VB
up/RB
wasting/VBG
state/NN
subsidies/NNS
of/IN
about/IN
35/CD
billion/CD
Swedish/JJ
kronor/NNS
$/$
5.47/CD
billion/CD
the/DT
1970s/NNS
in/IN
a/DT
vain/JJ
attempt/NN
to/TO
salvage/VB
its/PRP$
shipbuilding/NN
industry/NN
,/,
one/CD
analyst/NN
suggested/VBD
that/IN
Mr./NNP
Suominen/NNP
may/MD
have/VB
decided/VBD
to/TO
cut/VB
Finland/NNP
's/POS
losses/NNS
once/RB
and/CC
for/IN
all/DT
./.
Senior/JJ
ministry/NN
officials/NNS
huddled/VBD
with/IN
creditors/NNS
during/IN
the/DT
week/NN
in/IN
an/DT
attempt/NN
to/TO
agree/VB
on/IN
some/DT
form/NN
of/IN
restructuring/NN
that/DT
would/MD
keep/VB
Waertsilae/NNP
Marine/NNP
operating/VBG
./.
The/DT
talks/NNS
may/MD
drag/VB
on/IN
for/IN
weeks/NNS
before/IN
any/DT
concrete/JJ
result/NN
is/VBZ
announced/VBN
,/,
people/NNS
familiar/JJ
with/IN
them/PRP
said/VBD
./.
One/CD
solution/NN
would/MD
be/VB
to/TO
sell/VB
the/DT
shipyard/NN
to/TO
an/DT
outsider/NN
./.
But/CC
there/RB
appear/VB
to/TO
be/VB
few/JJ
,/,
if/IN
any/DT
,/,
suitors/NNS
./.
Indeed/RB
,/,
the/DT
potential/JJ
losses/NNS
make/VBP
any/DT
rescue/NN
scheme/NN
unlikely/JJ
unless/IN
the/DT
politicians/NNS
once/RB
again/RB
change/VBP
tack/NN
and/CC
agree/VBP
to/TO
pick/VB
up/RP
the/DT
bill/NN
,/,
analysts/NNS
said/VBD
./.
Meantime/RB
,/,
shippers/NNS
with/IN
vessels/NNS
on/IN
order/NN
from/IN
Waertsilae/NNP
Marine/NNP
will/MD
remain/VB
in/IN
limbo/NN
./.
Turner/NNP
Broadcasting/NNP
System/NNP
Inc./NNP
said/VBD
it/PRP
expects/VBZ
to/TO
report/VB
an/DT
extraordinary/JJ
loss/NN
of/IN
about/IN
$/$
122/CD
million/CD
in/IN
the/DT
fourth/JJ
quarter/NN
due/JJ
to/TO
early/JJ
retirement/NN
of/IN
debt/NN
./.
The/DT
cable/NN
programmer/NN
said/VBD
the/DT
loss/NN
will/MD
consist/VB
primarily/RB
of/IN
prepayment/NN
penalties/NNS
,/,
and/CC
unamortized/JJ
issue/NN
discount/NN
and/CC
costs/NNS
related/JJ
to/TO
its/PRP$
just-completed/JJ
$/$
1.6/CD
billion/CD
refinancing/NN
of/IN
its/PRP$
long-term/JJ
debt/NN
and/CC
some/DT
preferred/JJ
stock/NN
in/IN
one/CD
of/IN
its/PRP$
subsidiaries/NNS
./.
A/DT
Turner/NNP
spokesman/NN
would/MD
n't/RB
speculate/VB
on/IN
the/DT
extent/NN
of/IN
the/DT
charge/NN
's/POS
effect/NN
on/IN
the/DT
quarter/NN
's/POS
earnings/NNS
,/,
but/CC
said/VBD
the/DT
company/NN
continues/VBZ
to/TO
expect/VB
to/TO
report/VB
a/DT
net/JJ
loss/NN
for/IN
1989/CD
./.
The/DT
company/NN
said/VBD
the/DT
repayment/NN
or/CC
redemption/NN
of/IN
the/DT
long-term/JJ
debt/NN
,/,
and/CC
the/DT
outstanding/JJ
Class/NN
A/NNP
cumulative/JJ
exchangeable/JJ
preferred/JJ
stock/NN
of/IN
Cable/NNP
News/NNP
Network/NNP
,/,
was/VBD
made/VBN
possible/JJ
by/IN
an/DT
offering/NN
of/IN
about/IN
$/$
750/CD
million/CD
of/IN
debentures/NNS
and/CC
notes/NNS
and/CC
$/$
900/CD
million/CD
in/IN
bank/NN
borrowings/NNS
./.
The/DT
offering/NN
included/VBD
$/$
550/CD
million/CD
of/IN
12/CD
%/NN
senior/JJ
subordinated/JJ
debentures/NNS
due/JJ
2001/CD
and/CC
$/$
200/CD
million/CD
of/IN
zero/CD
coupon/NN
liquid/JJ
yield/NN
option/NN
notes/NNS
due/JJ
2004/CD
./.
The/DT
notes/NNS
were/VBD
priced/VBN
to/TO
yield/VB
8/CD
%/NN
and/CC
are/VBP
convertible/JJ
into/IN
the/DT
company/NN
's/POS
Class/NN
B/NNP
common/JJ
stock/NN
at/IN
a/DT
price/NN
which/WDT
represents/VBZ
a/DT
15/CD
%/NN
premium/NN
over/IN
the/DT
market/NN
price/NN
on/IN
Oct./NNP
10/CD
,/,
1989/CD
./.
In/IN
addition/NN
,/,
the/DT
company/NN
called/VBD
its/PRP$
12/CD
7\/8/CD
%/NN
senior/JJ
subordinated/JJ
notes/NNS
due/JJ
1994/CD
,/,
with/IN
an/DT
aggregate/NN
principal/JJ
amount/NN
of/IN
$/$
200/CD
million/CD
,/,
for/IN
redemption/NN
on/IN
Dec./NNP
15/CD
./.
As/IN
a/DT
result/NN
of/IN
the/DT
refinancing/NN
,/,
the/DT
company/NN
said/VBD
the/DT
interest/NN
on/IN
the/DT
debt/NN
will/MD
fall/VB
to/TO
slightly/RB
more/JJR
than/IN
11/CD
%/NN
from/IN
slightly/RB
more/JJR
than/IN
14/CD
%/NN
./.
In/IN
American/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Turner/NNP
's/POS
Class/NN
A/NNP
stock/NN
closed/VBD
at/IN
$/$
50.50/CD
,/,
down/RB
37.5/CD
cents/NNS
./.
General/NNP
Motors/NNPS
Corp./NNP
said/VBD
it/PRP
will/MD
temporarily/RB
idle/VB
its/PRP$
Arlington/NNP
,/,
Texas/NNP
,/,
assembly/NN
plant/NN
for/IN
one/CD
week/NN
beginning/NN
Monday/NNP
because/IN
of/IN
slow/JJ
sales/NNS
./.
The/DT
closing/NN
will/MD
affect/VB
about/IN
3,000/CD
workers/NNS
and/CC
eliminate/VB
production/NN
of/IN
700/CD
cars/NNS
./.
The/DT
assembly/NN
plant/NN
builds/VBZ
the/DT
Cadillac/NNP
DeVille/NNP
,/,
Chevrolet/NNP
Caprice/NNP
and/CC
Oldsmobile/NNP
Cutlass/NNP
Ciera/NNP
Wagon/NNP
./.
In/IN
addition/NN
,/,
GM/NNP
's/POS
Truck/NNP
&/CC
Bus/NNP
Group/NNP
said/VBD
slow/JJ
sales/NNS
are/VBP
forcing/VBG
it/PRP
to/TO
close/VB
its/PRP$
Detroit/NNP
assembly/NN
plant/NN
the/DT
week/NN
beginning/VBG
Monday/NNP
./.
The/DT
plant/NN
builds/VBZ
chassis/NNS
for/IN
recreational/JJ
vehicles/NNS
and/CC
about/IN
450/CD
workers/NNS
will/MD
be/VB
affected/VBN
by/IN
the/DT
closing/NN
./.
The/DT
No./NN
1/CD
auto/NN
maker/NN
scheduled/VBD
overtime/NN
this/DT
week/NN
at/IN
its/PRP$
Janesville/NNP
,/,
Wis./NNP
,/,
assembly/NN
plant/NN
,/,
manufacturer/NN
of/IN
the/DT
Chevrolet/NNP
Cavalier/NNP
./.
The/DT
nine/CD
major/JJ
U.S./NNP
auto/NN
makers/NNS
plan/VBP
to/TO
build/VB
147,121/CD
vehicles/NNS
this/DT
week/NN
,/,
down/RB
9.6/CD
%/NN
from/IN
the/DT
162,767/CD
a/DT
year/NN
ago/RB
,/,
but/CC
2.5/CD
%/NN
higher/JJR
than/IN
last/JJ
week/NN
's/POS
143,534/CD
./.
Ford/NNP
Motor/NNP
Co./NNP
slated/VBD
overtime/NN
again/RB
this/DT
week/NN
at/IN
its/PRP$
Wixom/NNP
,/,
Mich./NNP
;/:
Wayne/NNP
,/,
Mich./NNP
;/:
Kansas/NNP
City/NNP
,/,
Mo./NNP
,/,
and/CC
Norfolk/NNP
,/,
Va./NNP
,/,
assembly/NN
plants/NNS
./.
They/PRP
build/VBP
the/DT
Lincoln/NNP
Town/NNP
Car/NNP
,/,
Continental/NNP
and/CC
Mark/NNP
VII/NNP
,/,
the/DT
Ford/NNP
Escort/NNP
and/CC
full-sized/JJ
pickup/NN
trucks/NNS
./.
Chrysler/NNP
Corp./NNP
scheduled/VBD
overtime/RB
this/DT
week/NN
at/IN
its/PRP$
St./NNP
Louis/NNP
Assembly/NNP
Plant/NNP
No./NN
2/CD
,/,
Newark/NNP
,/,
Del./NNP
,/,
and/CC
Sterling/NNP
Heights/NNP
,/,
Mich./NNP
,/,
assembly/NN
plants/NNS
./.
They/PRP
build/VBP
extended/JJ
minivans/NNS
and/CC
the/DT
Dodge/NNP
Spirit/NNP
,/,
Acclaim/NNP
,/,
Shadow/NNP
and/CC
Sundance/NNP
./.
d/LS
-/:
Percentage/NN
change/NN
is/VBZ
greater/JJR
than/IN
999/CD
%/NN
./.
e/LS
-/:
Estimated/VBN
./.
f/LS
-/:
Includes/VBZ
Chevrolet/NNP
Prizm/NNP
and/CC
Toyota/NNP
Corolla/NNP
./.
r/LS
-/:
Revised/VBN
./.
x/LS
-/:
Year-to-date/JJ
1988/CD
figure/NN
includes/VBZ
Volkswagen/NN
domestic-production/NN
through/IN
July/NNP
./.
The/DT
surprise/NN
resignations/NNS
of/IN
two/CD
top/JJ
economic/JJ
government/NN
officials/NNS
heaped/VBD
more/JJR
uncertainty/NN
on/IN
London/NNP
's/POS
financial/JJ
markets/NNS
,/,
which/WDT
already/RB
have/VBP
been/VBN
laboring/VBG
under/IN
worries/NNS
about/IN
Britain/NNP
's/POS
ailing/VBG
economy/NN
./.
``/``
The/DT
last/JJ
thing/NN
markets/NNS
like/VBP
is/VBZ
uncertainty/NN
,/,
''/''
said/VBD
Ian/NNP
Harwood/NNP
,/,
chief/JJ
economist/NN
at/IN
S.G./NNP
Warburg/NNP
&/CC
Co./NNP
,/,
of/IN
the/DT
resignations/NNS
of/IN
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
Nigel/NNP
Lawson/NNP
and/CC
chief/JJ
economic/JJ
adviser/NN
Sir/NNP
Alan/NNP
Walters/NNP
./.
``/``
I/PRP
think/VBP
you/PRP
'll/MD
see/VB
share/NN
prices/NNS
go/VB
down/RP
,/,
and/CC
sterling/NN
now/RB
is/VBZ
under/IN
something/NN
of/IN
a/DT
cloud/NN
./.
''/''
The/DT
pound/NN
immediately/RB
began/VBD
to/TO
take/VB
a/DT
buffetting/NN
after/IN
the/DT
resignations/NNS
were/VBD
announced/VBN
./.
In/IN
late/JJ
New/NNP
York/NNP
trading/NN
,/,
sterling/NN
stood/VBD
at/IN
$/$
1.5765/CD
,/,
down/RB
from/IN
$/$
1.6145/CD
late/JJ
Wednesday/NNP
./.
The/DT
British/JJ
economy/NN
is/VBZ
hardly/RB
the/DT
picture/NN
of/IN
health/NN
these/DT
days/NNS
./.
At/IN
15/CD
%/NN
,/,
base/NN
interest/NN
rates/NNS
are/VBP
the/DT
highest/JJS
in/IN
eight/CD
years/NNS
,/,
and/CC
the/DT
7.6/CD
%/NN
annual/JJ
inflation/NN
rate/NN
is/VBZ
by/IN
far/RB
the/DT
highest/JJS
in/IN
the/DT
European/NNP
Community/NNP
./.
Unions/NNS
are/VBP
pressing/VBG
demands/NNS
for/IN
wage/NN
increases/NNS
of/IN
more/JJR
than/IN
10/CD
%/NN
despite/IN
general/JJ
belief/NN
that/IN
economic/JJ
growth/NN
next/JJ
year/NN
will/MD
be/VB
less/JJR
than/IN
2/CD
%/NN
./.
Increasingly/RB
,/,
the/DT
financial/JJ
markets/NNS
are/VBP
reflecting/VBG
the/DT
gloom/NN
./.
The/DT
Financial/NNP
Times/NNPS
100-share/JJ
index/NN
has/VBZ
dropped/VBN
about/IN
12/CD
%/NN
from/IN
its/PRP$
1989/CD
high/NN
of/IN
2423.9/CD
on/IN
Sept./NNP
8/CD
./.
Yesterday/NN
,/,
even/RB
before/IN
the/DT
resignations/NNS
were/VBD
announced/VBN
,/,
the/DT
index/NN
dove/VBD
32.5/CD
points/NNS
to/TO
close/VB
at/IN
2129.4/CD
./.
``/``
We/PRP
are/VBP
expecting/VBG
a/DT
recession/NN
,/,
''/''
says/VBZ
Donald/NNP
Franklin/NNP
,/,
chief/JJ
economist/NN
at/IN
Schroders/NNP
investment/NN
bank/NN
./.
``/``
The/DT
only/JJ
question/NN
is/VBZ
,/,
how/WRB
deep/RB
is/VBZ
it/PRP
going/VBG
to/TO
be/VB
?/.
The/DT
outlook/NN
for/IN
corporate/JJ
earnings/NNS
is/VBZ
fairly/RB
bleak/JJ
./.
It/PRP
's/VBZ
quite/RB
likely/JJ
we/PRP
're/VBP
going/VBG
to/TO
get/VB
repeats/NNS
''/''
of/IN
the/DT
mid-October/NNP
market/NN
shocks/NNS
./.
Red/JJ
ink/NN
already/RB
has/VBZ
begun/VBN
to/TO
flow/VB
in/IN
the/DT
wake/NN
of/IN
the/DT
U.S.-U.K./JJ
market/NN
breaks/NNS
of/IN
Oct./NNP
13/CD
and/CC
Oct./NNP
16/CD
./.
London-based/JJ
LIT/NNP
Holdings/NNPS
,/,
the/DT
largest/JJS
financer/NN
of/IN
traders/NNS
in/IN
the/DT
Chicago/NNP
options/NNS
and/CC
futures/NNS
markets/NNS
,/,
said/VBD
yesterday/NN
it/PRP
will/MD
incur/VB
a/DT
second-half/JJ
loss/NN
as/IN
a/DT
result/NN
of/IN
the/DT
market/NN
plunge/NN
./.
The/DT
company/NN
,/,
which/WDT
also/RB
will/MD
omit/VB
its/PRP$
second-half/JJ
dividend/NN
,/,
did/VBD
n't/RB
specify/VB
the/DT
size/NN
./.
But/CC
company/NN
insiders/NNS
estimated/VBN
that/IN
the/DT
loss/NN
could/MD
approach/VB
the/DT
equivalent/NN
of/IN
$/$
10/CD
million/CD
./.
Christopher/NNP
Castleman/NNP
,/,
LIT/NNP
chief/NN
executive/NN
,/,
said/VBD
in/IN
an/DT
interview/NN
that/IN
the/DT
loss/NN
stemmed/VBD
from/IN
the/DT
default/NN
of/IN
three/CD
options/NNS
traders/NNS
who/WP
had/VBD
bet/VBN
on/IN
a/DT
price/NN
rise/NN
in/IN
UAL/NNP
Corp./NNP
shares/NNS
before/IN
Oct./NNP
13/CD
./.
The/DT
price/NN
plummeted/VBD
after/IN
a/DT
proposed/VBN
leveraged/NN
buy-out/NN
of/IN
the/DT
airline/NN
fell/VBD
through/RB
./.
LIT/NNP
Holdings/NNPS
shares/NNS
plummeted/VBD
36/CD
pence/NNS
to/TO
close/VB
at/IN
54/CD
pence/NNS
85/CD
cents/NNS
a/DT
40/CD
%/NN
drop/NN
,/,
on/IN
London/NNP
's/POS
stock/NN
exchange/NN
./.
Denizens/NNS
of/IN
London/NNP
's/POS
financial/JJ
district/NN
are/VBP
cushioning/VBG
themselves/PRP
for/IN
heavy/JJ
blows/NNS
./.
``/``
A/DT
lot/NN
more/JJR
of/IN
our/PRP$
customers/NNS
are/VBP
staying/VBG
until/IN
our/PRP$
10/CD
p.m./RB
closing/NN
time/NN
,/,
''/''
says/VBZ
Christopher/NNP
Brown/NNP
,/,
managing/VBG
director/NN
of/IN
Corney/NNP
&/CC
Barrow/NNP
Restaurants/NNPS
Ltd./NNP
,/,
which/WDT
runs/VBZ
five/CD
tony/JJ
wine/NN
bars/NNS
in/IN
the/DT
district/NN
./.
``/``
There/EX
's/VBZ
a/DT
strong/JJ
sense/NN
among/IN
the/DT
martini/NN
set/NN
that/IN
there/EX
's/VBZ
more/JJR
{/(
bad/JJ
news/NN
Roger/NNP
Yates/NNP
,/,
chief/JJ
investment/NN
officer/NN
at/IN
Morgan/NNP
Grenfell/NNP
Asset/NNP
Management/NNP
./.
``/``
People/NNS
in/IN
the/DT
stock/NN
market/NN
were/VBD
very/RB
much/JJ
Thatcher/NNP
's/POS
children/NNS
--/:
very/RB
young/JJ
and/CC
wealthy/JJ
optimists/NNS
./.
Now/RB
it/PRP
's/VBZ
dawning/VBG
on/IN
them/PRP
that/IN
they/PRP
can/MD
be/VB
non-wealthy/JJ
./.
''/''
The/DT
malaise/NN
has/VBZ
created/VBN
a/DT
nostalgic/JJ
longing/NN
for/IN
the/DT
uncomplicated/JJ
days/NNS
of/IN
the/DT
mid-1980s/NNS
,/,
before/IN
a/DT
rash/NN
of/IN
securities-firm/NN
mergers/NNS
on/IN
the/DT
eve/NN
of/IN
the/DT
industry/NN
's/POS
deregulation/NN
in/IN
1986/CD
./.
``/``
People/NNS
come/VBP
to/TO
us/PRP
saying/VBG
they/PRP
'd/MD
like/VB
to/TO
be/VB
back/RB
where/WRB
they/PRP
were/VBD
a/DT
few/JJ
years/NNS
ago/RB
,/,
in/IN
a/DT
more/RBR
collegial/JJ
atmosphere/NN
,/,
with/IN
less/JJR
tension/NN
,/,
''/''
says/VBZ
Stephen/NNP
Waterhouse/NNP
,/,
managing/VBG
director/NN
of/IN
Hanover/NNP
Partners/NNPS
Ltd./NNP
,/,
a/DT
financial/JJ
district/NN
head-hunting/NN
firm/NN
./.
But/CC
after/IN
trading/NN
losses/NNS
in/IN
the/DT
mid-October/JJ
market/NN
jolts/NNS
here/RB
,/,
many/JJ
people/NNS
will/MD
be/VB
lucky/JJ
to/TO
have/VB
jobs/NNS
at/IN
all/DT
,/,
executives/NNS
predict/VBP
./.
The/DT
industry/NN
,/,
which/WDT
currently/RB
employs/VBZ
about/IN
25,000/CD
people/NNS
in/IN
London/NNP
,/,
has/VBZ
shed/VBN
about/IN
2,500/CD
jobs/NNS
over/IN
the/DT
past/JJ
two/CD
years/NNS
./.
``/``
I/PRP
can/MD
see/VB
cuts/NNS
of/IN
at/IN
least/JJS
20/CD
%/NN
more/JJR
,/,
''/''
says/VBZ
the/DT
head/NN
of/IN
the/DT
London/NNP
office/NN
of/IN
a/DT
major/JJ
U.S./NNP
firm/NN
./.
The/DT
mergers/NNS
and/CC
acquisitions/NNS
market/NN
has/VBZ
been/VBN
a/DT
saving/VBG
grace/NN
for/IN
the/DT
industry/NN
,/,
but/CC
uncertainties/NNS
are/VBP
beginning/VBG
to/TO
mount/VB
even/RB
there/RB
./.
Intra-European/JJ
takeovers/NNS
are/VBP
expected/VBN
to/TO
continue/VB
at/IN
their/PRP$
brisk/JJ
pace/NN
./.
But/CC
investment/NN
bankers/NNS
say/VBP
that/IN
stock/NN
market/NN
uncertainties/NNS
in/IN
the/DT
U.S./NNP
may/MD
cause/VB
many/JJ
European/JJ
companies/NNS
to/TO
mark/VB
time/NN
before/IN
bidding/NN
for/IN
American/JJ
companies/NNS
,/,
in/IN
the/DT
hope/NN
that/IN
share/NN
prices/NNS
will/MD
come/VB
down/RP
./.
``/``
If/IN
prices/NNS
in/IN
the/DT
States/NNPS
go/VBP
down/RP
,/,
industrial/JJ
buyers/NNS
in/IN
Europe/NNP
have/VBP
the/DT
opportunity/NN
of/IN
getting/VBG
reasonable/JJ
prices/NNS
in/IN
the/DT
U.S./NNP
,/,
''/''
says/VBZ
Francois/NNP
von/NNP
Hurter/NNP
,/,
chief/NN
of/IN
Continential/NNP
M&A/NNP
at/IN
Credit/NNP
Suisse/NNP
First/JJ
Boston/NNP
Ltd/NNP
./.
But/CC
he/PRP
adds/VBZ
:/:
``/``
Everybody/NN
and/CC
his/PRP$
sister/NN
have/VBP
opened/VBN
up/RP
M&A/NNP
shops/NNS
./.
It/PRP
's/VBZ
difficult/JJ
to/TO
see/VB
that/IN
there/EX
's/VBZ
going/VBG
to/TO
be/VB
enough/JJ
business/NN
to/TO
go/VB
around/RP
./.
About/IN
eight/CD
firms/NNS
will/MD
get/VB
the/DT
lion/NN
's/POS
share/NN
./.
At/IN
the/DT
others/NNS
,/,
there/EX
are/VBP
going/VBG
to/TO
be/VB
a/DT
lot/NN
of/IN
disappointments/NNS
,/,
after/IN
all/PDT
those/DT
promises/NNS
and/CC
all/PDT
that/DT
big/JJ
money/NN
that/WDT
's/VBZ
been/VBN
paid/VBN
to/TO
people/NNS
./.
''/''
It/PRP
all/DT
adds/VBZ
up/RB
to/TO
a/DT
cold/JJ
winter/NN
here/RB
./.
Says/VBZ
Allen/NNP
D./NNP
Wheat/NNP
,/,
head/NN
of/IN
trading/NN
at/IN
Bankers/NNPS
Trust/NNP
Co./NNP
:/:
``/``
People/NNS
are/VBP
just/RB
plain/RB
scared/JJ
./.
''/''
One/CD
person/NN
who/WP
is/VBZ
past/RB
worrying/VBG
about/IN
London/NNP
's/POS
blues/NNS
is/VBZ
Christopher/NNP
Hartley/NNP
./.
Last/JJ
summer/NN
,/,
he/PRP
chucked/VBD
his/PRP$
10-year/JJ
career/NN
as/IN
a/DT
London/NNP
stockbroker/NN
and/CC
headed/VBD
for/IN
the/DT
mountains/NNS
./.
He/PRP
did/VBD
n't/RB
stop/VB
until/IN
he/PRP
got/VBD
to/TO
Jackson/NNP
Hole/NNP
,/,
Wyo/NNP
./.
``/``
I/PRP
'm/VBP
glad/JJ
to/TO
be/VB
out/RP
,/,
''/''
said/VBD
the/DT
32-year-old/JJ
Mr./NNP
Hartley/NNP
in/IN
a/DT
phone/NN
interview/NN
./.
``/``
The/DT
percentage/NN
of/IN
your/PRP$
day/NN
spent/VBD
twiddling/VBG
your/PRP$
thumbs/NNS
got/VBD
greater/JJR
,/,
and/CC
the/DT
work/NN
day/NN
kept/VBD
getting/VBG
longer/JJR
./.
What/WP
am/VBP
I/PRP
doing/VBG
in/IN
Jackson/NNP
Hole/NNP
?/.
Not/RB
a/DT
great/JJ
deal/NN
./.
My/PRP$
wife/NN
and/CC
I/PRP
will/MD
stay/VB
through/IN
the/DT
skiing/NN
season/NN
,/,
or/CC
until/IN
the/DT
money/NN
runs/VBZ
out/RP
--/:
whichever/WDT
comes/VBZ
first/RB
./.
But/CC
unlike/IN
London/NNP
,/,
out/IN
here/RB
I/PRP
've/VBP
never/RB
heard/VBN
anybody/NN
blow/VB
a/DT
car/NN
horn/NN
in/IN
anger/NN
./.
''/''
SYDNEY-Qintex/NNP
Australia/NNP
Ltd./NNP
,/,
under/IN
pressure/NN
from/IN
bank/NN
lenders/NNS
,/,
has/VBZ
called/VBN
in/IN
accounting/NN
firm/NN
Peat/NNP
Marwick/NNP
Hungerfords/NNP
to/TO
help/VB
oversee/VB
asset/NN
sales/NNS
and/CC
restructure/VB
the/DT
resorts/NNS
and/CC
media/NNS
company/NN
./.
Analysts/NNS
said/VBD
the/DT
move/NN
could/MD
presage/VB
even/RB
harsher/JJR
action/NN
by/IN
the/DT
banks/NNS
./.
But/CC
any/DT
move/NN
by/IN
the/DT
banks/NNS
to/TO
take/VB
over/IN
Qintex/NNP
Australia/NNP
's/POS
management/NN
could/MD
threaten/VB
its/PRP$
ability/NN
to/TO
operate/VB
its/PRP$
national/JJ
television/NN
network/NN
under/IN
Australian/JJ
broadcast/NN
license/NN
rules/NNS
./.
That/IN
,/,
in/IN
turn/NN
,/,
could/MD
substantially/RB
reduce/VB
the/DT
value/NN
of/IN
the/DT
television/NN
assets/NNS
./.
The/DT
appointment/NN
of/IN
Peat/NNP
Marwick/NNP
,/,
which/WDT
has/VBZ
a/DT
unit/NN
that/WDT
specializes/VBZ
in/IN
advising/VBG
troubled/JJ
companies/NNS
,/,
came/VBD
about/RB
as/IN
a/DT
result/NN
of/IN
a/DT
round/NN
of/IN
meetings/NNS
held/VBN
by/IN
Qintex/NNP
Australia/NNP
Chairman/NNP
Christopher/NNP
Skase/NNP
with/IN
bank/NN
creditors/NNS
./.
Yesterday/NN
,/,
Mr./NNP
Skase/NNP
said/VBD
the/DT
company/NN
is/VBZ
``/``
solvent/JJ
and/CC
with/IN
the/DT
continued/JJ
support/NN
of/IN
its/PRP$
bankers/NNS
is/VBZ
able/JJ
to/TO
meet/VB
its/PRP$
financial/JJ
commitments/NNS
./.
''/''
Qintex/NNP
Australia/NNP
is/VBZ
a/DT
unit/NN
of/IN
Qintex/NNP
Ltd/NNP
./.
The/DT
Qintex/NNP
group/NN
's/POS
problems/NNS
began/VBD
in/IN
earnest/NN
in/IN
March/NNP
,/,
when/WRB
Mr./NNP
Skase/NNP
agreed/VBD
to/TO
buy/VB
MGM\/UA/NNP
Communications/NNPS
Co/NNP
./.
But/CC
the/DT
transaction/NN
faltered/VBD
in/IN
September/NNP
,/,
when/WRB
Qintex/NNP
Australia/NNP
was/VBD
forced/VBN
to/TO
increase/VB
its/PRP$
offer/NN
to/TO
US$/$
1.5/CD
billion/CD
following/VBG
a/DT
counterbid/NN
from/IN
Rupert/NNP
Murdoch/NNP
;/:
the/DT
deal/NN
fell/VBD
apart/RB
altogether/RB
earlier/RBR
this/DT
month/NN
./.
Qintex/NNP
Australia/NNP
owes/VBZ
creditors/NNS
around/IN
A$/$
1.2/CD
billion/CD
./.
Last/JJ
Friday/NNP
,/,
Qintex/NNP
Entertainment/NNP
Inc./NNP
,/,
its/PRP$
43%-owned/JJ
U.S./NNP
TV/NN
production/NN
and/CC
distribution/NN
affiliate/NN
,/,
filed/VBD
for/IN
Chapter/NNP
11/CD
protection/NN
./.
The/DT
government/NN
is/VBZ
sharpening/VBG
its/PRP$
newest/JJS
weapon/NN
against/IN
white-collar/JJ
defendants/NNS
:/:
the/DT
power/NN
to/TO
prevent/VB
them/PRP
from/IN
paying/VBG
their/PRP$
legal/JJ
bills/NNS
./.
And/CC
defense/NN
lawyers/NNS
are/VBP
warning/VBG
that/IN
they/PRP
wo/MD
n't/RB
stick/VB
around/RP
if/IN
they/PRP
do/VBP
n't/RB
get/VB
paid/VBN
./.
The/DT
issue/NN
has/VBZ
come/VBN
to/TO
a/DT
boil/NN
in/IN
Newark/NNP
,/,
N.J./NNP
,/,
where/WRB
federal/JJ
prosecutors/NNS
have/VBP
warned/VBN
lawyers/NNS
for/IN
Eddie/NNP
Antar/NNP
that/IN
if/IN
the/DT
founder/NN
and/CC
former/JJ
chairman/NN
of/IN
Crazy/NNP
Eddie/NNP
Inc./NNP
is/VBZ
indicted/VBN
,/,
the/DT
government/NN
may/MD
move/VB
to/TO
seize/VB
the/DT
money/NN
that/IN
Mr./NNP
Antar/NNP
is/VBZ
using/VBG
to/TO
pay/VB
legal/JJ
fees/NNS
./.
The/DT
warning/NN
by/IN
the/DT
U.S./NNP
attorney/NN
's/POS
office/NN
follows/VBZ
two/CD
decisions/NNS
by/IN
the/DT
U.S./NNP
Supreme/NNP
Court/NNP
last/JJ
June/NNP
./.
In/IN
those/DT
cases/NNS
,/,
the/DT
high/JJ
court/NN
ruled/VBD
that/DT
federal/JJ
law/NN
gives/VBZ
prosecutors/NNS
broad/JJ
authority/NN
to/TO
seize/VB
assets/NNS
of/IN
people/NNS
accused/VBN
of/IN
racketeering/NN
and/CC
drug-related/JJ
crimes/NNS
,/,
including/VBG
fees/NNS
paid/VBN
to/TO
lawyers/NNS
before/IN
an/DT
indictment/NN
./.
If/IN
the/DT
government/NN
succeeds/VBZ
in/IN
seizing/VBG
Mr./NNP
Antar/NNP
's/POS
assets/NNS
,/,
he/PRP
could/MD
be/VB
left/VBN
without/IN
top-flight/JJ
legal/JJ
representation/NN
,/,
because/IN
his/PRP$
attorneys/NNS
are/VBP
likely/JJ
to/TO
quit/VB
,/,
according/VBG
to/TO
individuals/NNS
familiar/JJ
with/IN
the/DT
case/NN
./.
A/DT
seizure/NN
also/RB
would/MD
make/VB
the/DT
case/NN
the/DT
largest/JJS
--/:
and/CC
one/CD
of/IN
the/DT
first/JJ
--/:
in/IN
which/WDT
lawyers/NNS
'/POS
fees/NNS
have/VBP
been/VBN
confiscated/VBN
in/IN
a/DT
prosecution/NN
unrelated/JJ
to/TO
drugs/NNS
./.
``/``
The/DT
people/NNS
who/WP
suffer/VBP
in/IN
the/DT
short/JJ
run/NN
are/VBP
defendants/NNS
,/,
but/CC
the/DT
people/NNS
who/WP
suffer/VBP
in/IN
the/DT
long/JJ
run/NN
are/VBP
all/DT
of/IN
the/DT
people/NNS
,/,
because/IN
there/EX
wo/MD
n't/RB
be/VB
a/DT
vigorous/JJ
private/JJ
bar/NN
to/TO
defend/VB
the/DT
Bill/NNP
of/IN
Rights/NNPS
,/,
''/''
says/VBZ
Gerald/NNP
Lefcourt/NNP
,/,
a/DT
criminal/NN
defense/NN
attorney/NN
who/WP
says/VBZ
he/PRP
has/VBZ
turned/VBN
down/RP
a/DT
number/NN
of/IN
cases/NNS
to/TO
avoid/VB
possible/JJ
fee/NN
seizures/NNS
./.
Mr./NNP
Antar/NNP
is/VBZ
being/VBG
investigated/VBN
by/IN
a/DT
federal/JJ
grand/JJ
jury/NN
in/IN
Newark/NNP
,/,
where/WRB
prosecutors/NNS
have/VBP
told/VBN
him/PRP
that/IN
they/PRP
may/MD
soon/RB
seek/VB
an/DT
indictment/NN
on/IN
racketeering/NN
and/CC
securities/NNS
fraud/NN
charges/NNS
./.
Under/IN
the/DT
Racketeer/NNP
Influenced/NNP
and/CC
Corrupt/NNP
Organizations/NNPS
law/NN
,/,
or/CC
RICO/NNP
,/,
the/DT
government/NN
has/VBZ
the/DT
authority/NN
to/TO
seek/VB
to/TO
freeze/VB
or/CC
seize/VB
a/DT
defendant/NN
's/POS
assets/NNS
before/IN
trial/NN
./.
According/VBG
to/TO
individuals/NNS
familiar/JJ
with/IN
Mr./NNP
Antar/NNP
's/POS
case/NN
,/,
prosecutors/NNS
issued/VBD
their/PRP$
warning/NN
this/DT
week/NN
after/IN
one/CD
of/IN
Mr./NNP
Antar/NNP
's/POS
attorneys/NNS
asked/VBD
whether/IN
legal/JJ
fees/NNS
might/MD
be/VB
subject/JJ
to/TO
seizure/NN
./.
In/IN
a/DT
letter/NN
,/,
prosecutors/NNS
told/VBD
Mr./NNP
Antar/NNP
's/POS
lawyers/NNS
that/IN
because/IN
of/IN
the/DT
recent/JJ
Supreme/NNP
Court/NNP
rulings/NNS
,/,
they/PRP
could/MD
expect/VB
that/IN
any/DT
fees/NNS
collected/VBN
from/IN
Mr./NNP
Antar/NNP
may/MD
be/VB
seized/VBN
./.
Prosecutors/NNS
have/VBP
told/VBN
Mr./NNP
Antar/NNP
's/POS
attorneys/NNS
that/IN
they/PRP
believe/VBP
Mr./NNP
Antar/NNP
's/VBZ
allegedly/RB
ill-gotten/JJ
gains/NNS
are/VBP
so/RB
great/JJ
that/IN
any/DT
money/NN
he/PRP
has/VBZ
used/VBN
to/TO
pay/VB
attorneys/NNS
derives/VBZ
from/IN
illegal/JJ
activities/NNS
./.
Therefore/RB
,/,
they/PRP
said/VBD
,/,
the/DT
money/NN
can/MD
be/VB
taken/VBN
from/IN
the/DT
lawyers/NNS
even/RB
after/IN
they/PRP
are/VBP
paid/VBN
./.
Justin/NNP
Feldman/NNP
and/CC
Jack/NNP
Arseneault/NNP
,/,
attorneys/NNS
for/IN
Mr./NNP
Antar/NNP
,/,
both/DT
declined/VBD
to/TO
comment/VB
on/IN
the/DT
matter/NN
./.
In/IN
Newark/NNP
,/,
U.S./NNP
Attorney/NNP
Samuel/NNP
A./NN
Alito/NNP
said/VBD
,/,
``/``
I/PRP
do/VBP
n't/RB
think/VB
there/EX
's/VBZ
any/DT
legal/JJ
reason/NN
to/TO
limit/VB
forfeiture/NN
of/IN
attorney/NN
's/POS
fees/NNS
to/TO
drug/NN
cases/NNS
./.
''/''
Mr./NNP
Alito/NNP
said/VBD
his/PRP$
office/NN
``/``
just/RB
responded/VBD
to/TO
an/DT
attorney/NN
's/POS
question/NN
about/IN
whether/IN
we/PRP
would/MD
go/VB
after/IN
attorney/NN
's/POS
fees/NNS
,/,
and/CC
that/DT
is/VBZ
different/JJ
from/IN
actually/RB
doing/VBG
it/PRP
,/,
although/IN
we/PRP
reserve/VBP
that/DT
right/NN
./.
''/''
Mr./NNP
Antar/NNP
was/VBD
charged/VBN
last/JJ
month/NN
in/IN
a/DT
civil/JJ
suit/NN
filed/VBN
in/IN
federal/JJ
court/NN
in/IN
Newark/NNP
by/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
./.
In/IN
that/DT
suit/NN
,/,
the/DT
SEC/NNP
accused/VBD
Mr./NNP
Antar/NNP
of/IN
engaging/VBG
in/IN
a/DT
``/``
massive/JJ
financial/JJ
fraud/NN
''/''
to/TO
overstate/VB
the/DT
earnings/NNS
of/IN
Crazy/NNP
Eddie/NNP
,/,
Edison/NNP
,/,
N.J./NNP
,/,
over/IN
a/DT
three-year/JJ
period/NN
./.
Through/IN
his/PRP$
lawyers/NNS
,/,
Mr./NNP
Antar/NNP
has/VBZ
denied/VBN
allegations/NNS
in/IN
the/DT
SEC/NNP
suit/NN
and/CC
in/IN
civil/JJ
suits/NNS
previously/RB
filed/VBN
by/IN
shareholders/NNS
against/IN
Mr./NNP
Antar/NNP
and/CC
others/NNS
./.
The/DT
SEC/NNP
has/VBZ
alleged/VBN
that/IN
Mr./NNP
Antar/NNP
aimed/VBD
to/TO
pump/VB
up/RP
the/DT
company/NN
's/POS
stock/NN
price/NN
through/IN
false/JJ
financial/JJ
statements/NNS
in/IN
order/NN
to/TO
sell/VB
his/PRP$
stake/NN
and/CC
reap/VB
huge/JJ
profits/NNS
./.
Mr./NNP
Antar/NNP
,/,
the/DT
SEC/NNP
said/VBD
,/,
made/VBD
more/JJR
than/IN
$/$
60/CD
million/CD
from/IN
the/DT
sale/NN
of/IN
his/PRP$
shares/NNS
between/IN
1985/CD
and/CC
1987/CD
./.
The/DT
Justice/NNP
Department/NNP
has/VBZ
emphasized/VBN
that/IN
the/DT
government/NN
's/POS
fee-forfeiture/NN
power/NN
is/VBZ
to/TO
be/VB
used/VBN
sparingly/RB
./.
According/VBG
to/TO
department/NN
policy/NN
,/,
prosecutors/NNS
must/MD
make/VB
a/DT
strong/JJ
showing/NN
that/IN
lawyers/NNS
'/POS
fees/NNS
came/VBD
from/IN
assets/NNS
tainted/VBN
by/IN
illegal/JJ
profits/NNS
before/IN
any/DT
attempts/NNS
at/IN
seizure/NN
are/VBP
made/VBN
./.
Still/RB
,/,
criminal/JJ
defense/NN
lawyers/NNS
worry/VBP
that/IN
defendants/NNS
are/VBP
being/VBG
deprived/VBN
of/IN
their/PRP$
Sixth/NNP
Amendment/NNP
right/NN
to/TO
counsel/NN
and/CC
a/DT
fair/JJ
trial/NN
if/IN
the/DT
government/NN
can/MD
seize/VB
lawyers/NNS
'/POS
fees/NNS
./.
They/PRP
also/RB
worry/VBP
that/IN
if/IN
the/DT
government/NN
applies/VBZ
asset-forfeiture/NN
laws/NNS
broadly/RB
,/,
the/DT
best/JJS
defense/NN
lawyers/NNS
will/MD
be/VB
unwilling/JJ
to/TO
take/VB
criminal/JJ
cases/NNS
unless/IN
they/PRP
are/VBP
assured/VBN
of/IN
being/VBG
paid/VBN
./.
The/DT
stock/NN
market/NN
correction/NN
of/IN
Oct./NNP
13/CD
,/,
1989/CD
,/,
was/VBD
a/DT
grim/JJ
reminder/NN
of/IN
the/DT
Oct./NNP
19/CD
,/,
1987/CD
market/NN
collapse/NN
./.
Since/IN
,/,
like/IN
earthquakes/NNS
,/,
stock/NN
market/NN
disturbances/NNS
will/MD
always/RB
be/VB
with/IN
us/PRP
,/,
it/PRP
is/VBZ
prudent/JJ
to/TO
take/VB
all/DT
possible/JJ
precautions/NNS
against/IN
another/DT
such/JJ
market/NN
collapse/NN
./.
In/IN
general/JJ
,/,
markets/NNS
function/VBP
well/RB
and/CC
adjust/VBP
smoothly/RB
to/TO
changing/VBG
economic/JJ
and/CC
financial/JJ
circumstances/NNS
./.
But/CC
there/EX
are/VBP
times/NNS
when/WRB
they/PRP
seize/VBP
up/RP
,/,
and/CC
panicky/JJ
sellers/NNS
can/MD
not/RB
find/VB
buyers/NNS
./.
That/DT
's/VBZ
just/RB
what/WP
happened/VBD
in/IN
the/DT
October/NNP
1987/CD
crash/NN
./.
As/IN
the/DT
market/NN
tumbled/VBD
,/,
disorderly/JJ
market/NN
conditions/NNS
prevailed/VBD
:/:
The/DT
margins/NNS
between/IN
buying/NN
bids/NNS
and/CC
selling/NN
bids/NNS
widened/VBD
;/:
trading/NN
in/IN
many/JJ
stocks/NNS
was/VBD
suspended/VBN
;/:
orders/NNS
took/VBD
unduly/RB
long/JJ
to/TO
be/VB
executed/VBN
;/:
and/CC
many/JJ
specialists/NNS
stopped/VBD
trading/VBG
altogether/RB
./.
These/DT
failures/NNS
in/IN
turn/NN
contributed/VBD
to/TO
the/DT
fall/NN
in/IN
the/DT
market/NN
averages/NNS
:/:
Uncertainty/NN
extracted/VBD
an/DT
extra/JJ
risk/NN
premium/NN
and/CC
margin-calls/NNS
triggered/VBD
additional/JJ
selling/NN
pressures/NNS
./.
The/DT
situation/NN
was/VBD
like/IN
that/DT
of/IN
a/DT
skier/NN
who/WP
is/VBZ
thrown/VBN
slightly/RB
off/IN
balance/NN
by/IN
an/DT
unexpected/JJ
bump/NN
on/IN
the/DT
slope/NN
./.
His/PRP$
skis/NNS
spread/VBP
farther/RBR
and/CC
farther/RBR
apart/RB
--/:
just/RB
as/IN
buy-sell/JJ
spreads/NNS
widen/VBP
during/IN
a/DT
financial/JJ
panic/NN
--/:
and/CC
soon/RB
he/PRP
is/VBZ
out/IN
of/IN
control/NN
./.
Unable/JJ
to/TO
stop/VB
his/PRP$
accelerating/VBG
descent/NN
,/,
he/PRP
crashes/VBZ
./.
After/IN
the/DT
1987/CD
crash/NN
,/,
and/CC
as/IN
a/DT
result/NN
of/IN
the/DT
recommendations/NNS
of/IN
many/JJ
studies/NNS
,/,
``/``
circuit/NN
breakers/NNS
''/''
were/VBD
devised/VBN
to/TO
allow/VB
market/NN
participants/NNS
to/TO
regroup/VB
and/CC
restore/VB
orderly/JJ
market/NN
conditions/NNS
./.
It/PRP
's/VBZ
doubtful/JJ
,/,
though/IN
,/,
whether/IN
circuit/NN
breakers/NNS
do/VBP
any/DT
real/JJ
good/NN
./.
In/IN
the/DT
additional/JJ
time/NN
they/PRP
provide/VBP
even/RB
more/JJR
order/NN
imbalances/NNS
might/MD
pile/VB
up/RB
,/,
as/IN
would-be/JJ
sellers/NNS
finally/RB
get/VB
their/PRP$
broker/NN
on/IN
the/DT
phone/NN
./.
Instead/RB
,/,
an/DT
appropriate/JJ
institution/NN
should/MD
be/VB
charged/VBN
with/IN
the/DT
job/NN
of/IN
preventing/VBG
chaos/NN
in/IN
the/DT
market/NN
:/:
the/DT
Federal/NNP
Reserve/NNP
./.
The/DT
availability/NN
of/IN
timely/JJ
assistance/NN
--/:
of/IN
a/DT
backstop/NN
--/:
can/MD
help/VB
markets/NNS
retain/VB
their/PRP$
resilience/NN
./.
The/DT
Fed/NNP
already/RB
buys/VBZ
and/CC
sells/VBZ
foreign/JJ
exchange/NN
to/TO
prevent/VB
disorderly/JJ
conditions/NNS
in/IN
foreign-exchange/NN
markets/NNS
./.
The/DT
Fed/NNP
has/VBZ
assumed/VBN
a/DT
similar/JJ
responsibility/NN
in/IN
the/DT
market/NN
for/IN
government/NN
securities/NNS
./.
The/DT
stock/NN
market/NN
is/VBZ
the/DT
only/RB
major/JJ
market/NN
without/IN
a/DT
market-maker/NN
of/IN
unchallenged/JJ
liquidity/NN
or/CC
a/DT
buyer/NN
of/IN
last/JJ
resort/NN
./.
This/DT
does/VBZ
not/RB
mean/VB
that/IN
the/DT
Federal/NNP
Reserve/NNP
does/VBZ
not/RB
already/RB
play/VB
an/DT
important/JJ
indirect/JJ
role/NN
in/IN
the/DT
stock/NN
market/NN
./.
In/IN
1987/CD
,/,
it/PRP
pumped/VBD
billions/NNS
into/IN
the/DT
markets/NNS
through/IN
open/JJ
market/NN
operations/NNS
and/CC
the/DT
discount/NN
window/NN
./.
It/PRP
lent/VBD
money/NN
to/TO
banks/NNS
and/CC
encouraged/VBD
them/PRP
to/TO
make/VB
funds/NNS
available/JJ
to/TO
brokerage/NN
houses/NNS
./.
They/PRP
,/,
in/IN
turn/NN
,/,
lent/VBD
money/NN
to/TO
their/PRP$
customers/NNS
--/:
who/WP
were/VBD
supposed/VBN
to/TO
recognize/VB
the/DT
opportunity/NN
to/TO
make/VB
a/DT
profit/NN
in/IN
the/DT
turmoil/NN
and/CC
buy/VB
shares/NNS
./.
The/DT
Fed/NNP
also/RB
has/VBZ
the/DT
power/NN
to/TO
set/VB
margin/NN
requirements/NNS
./.
But/CC
would/MD
n't/RB
it/PRP
be/VB
more/RBR
efficient/JJ
and/CC
effective/JJ
to/TO
supply/VB
such/JJ
support/NN
to/TO
the/DT
stock/NN
market/NN
directly/RB
?/.
Instead/RB
of/IN
flooding/VBG
the/DT
entire/JJ
economy/NN
with/IN
liquidity/NN
,/,
and/CC
thereby/RB
increasing/VBG
the/DT
danger/NN
of/IN
inflation/NN
,/,
the/DT
Fed/NNP
could/MD
support/VB
the/DT
stock/NN
market/NN
directly/RB
by/IN
buying/VBG
market/NN
averages/NNS
in/IN
the/DT
futures/NNS
market/NN
,/,
thus/RB
stabilizing/VBG
the/DT
market/NN
as/IN
a/DT
whole/NN
./.
The/DT
stock/NN
market/NN
is/VBZ
certainly/RB
not/RB
too/RB
big/JJ
for/IN
the/DT
Fed/NNP
to/TO
handle/VB
./.
The/DT
foreign-exchange/NN
and/CC
government/NN
securities/NNS
markets/NNS
are/VBP
vastly/RB
larger/JJR
./.
Daily/JJ
trading/NN
volume/NN
in/IN
the/DT
New/NNP
York/NNP
foreign/JJ
exchange/NN
market/NN
is/VBZ
$/$
130/CD
billion/CD
./.
The/DT
daily/JJ
volume/NN
for/IN
Treasury/NNP
Securities/NNPS
is/VBZ
about/IN
$/$
110/CD
billion/CD
./.
The/DT
combined/JJ
value/NN
of/IN
daily/JJ
equity/NN
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Exchange/NNP
,/,
the/DT
American/NNP
Stock/NNP
Exchange/NNP
and/CC
the/DT
NASDAQ/NNP
over-the-counter/JJ
market/NN
ranges/VBZ
between/IN
$/$
7/CD
billion/CD
and/CC
$/$
10/CD
billion/CD
./.
The/DT
$/$
13/CD
billion/CD
the/DT
Fed/NNP
injected/VBD
into/IN
the/DT
money/NN
markets/NNS
after/IN
the/DT
1987/CD
crash/NN
is/VBZ
more/RBR
than/IN
enough/JJ
to/TO
buy/VB
all/PDT
the/DT
stocks/NNS
traded/VBN
on/IN
a/DT
typical/JJ
day/NN
./.
More/RBR
carefully/RB
targeted/VBN
intervention/NN
might/MD
actually/RB
reduce/VB
the/DT
need/NN
for/IN
government/NN
action/NN
./.
And/CC
taking/VBG
more/RBR
direct/JJ
action/NN
has/VBZ
the/DT
advantage/NN
of/IN
avoiding/VBG
sharp/JJ
increases/NNS
in/IN
the/DT
money/NN
supply/NN
,/,
such/JJ
as/IN
happened/VBN
in/IN
October/NNP
1987/CD
./.
The/DT
Fed/NNP
's/POS
stock/NN
market/NN
role/NN
ought/MD
not/RB
to/TO
be/VB
very/RB
ambitious/JJ
./.
It/PRP
should/MD
seek/VB
only/RB
to/TO
maintain/VB
the/DT
functioning/NN
of/IN
markets/NNS
--/:
not/RB
to/TO
prop/VB
up/RP
the/DT
Dow/NNP
Jones/NNP
or/CC
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
averages/NNS
at/IN
a/DT
particular/JJ
level/NN
./.
The/DT
Fed/NNP
should/MD
guard/VB
against/IN
systemic/JJ
risk/NN
,/,
but/CC
not/RB
against/IN
the/DT
risks/NNS
inherent/JJ
in/IN
individual/JJ
stocks/NNS
./.
It/PRP
would/MD
be/VB
inappropriate/JJ
for/IN
the/DT
government/NN
or/CC
the/DT
central/JJ
bank/NN
to/TO
buy/VB
or/CC
sell/VB
IBM/NNP
or/CC
General/NNP
Motors/NNPS
shares/NNS
./.
Instead/RB
,/,
the/DT
Fed/NNP
could/MD
buy/VB
the/DT
broad/JJ
market/NN
composites/NNS
in/IN
the/DT
futures/NNS
market/NN
./.
The/DT
increased/VBN
demand/NN
would/MD
normalize/VB
trading/NN
and/CC
stabilize/VB
prices/NNS
./.
Stabilizing/VBG
the/DT
derivative/JJ
markets/NNS
would/MD
tend/VB
to/TO
stabilize/VB
the/DT
primary/JJ
market/NN
./.
The/DT
Fed/NNP
would/MD
eliminate/VB
the/DT
cause/NN
of/IN
the/DT
potential/JJ
panic/NN
rather/RB
than/IN
attempting/VBG
to/TO
treat/VB
the/DT
symptom/NN
--/:
the/DT
liquidity/NN
of/IN
the/DT
banks/NNS
./.
Disorderly/JJ
market/NN
conditions/NNS
could/MD
be/VB
observed/VBN
quite/RB
frequently/RB
in/IN
foreign/JJ
exchange/NN
markets/NNS
in/IN
the/DT
1960s/NNS
and/CC
1970s/NNS
./.
But/CC
since/IN
the/DT
member/NN
countries/NNS
of/IN
the/DT
International/NNP
Monetary/NNP
Fund/NNP
agreed/VBD
to/TO
the/DT
``/``
Guidelines/NNS
to/TO
Floating/VBG
''/''
in/IN
1974/CD
,/,
such/JJ
difficulties/NNS
have/VBP
been/VBN
avoided/VBN
./.
I/PRP
can/MD
not/RB
recall/VB
any/DT
disorder/NN
in/IN
currency/NN
markets/NNS
since/IN
the/DT
1974/CD
guidelines/NNS
were/VBD
adopted/VBN
./.
Thus/RB
,/,
the/DT
mere/JJ
existence/NN
of/IN
a/DT
market-stabilizing/JJ
agency/NN
helps/VBZ
to/TO
avoid/VB
panic/NN
in/IN
emergencies/NNS
./.
The/DT
old/JJ
saying/NN
advises/VBZ
:/:
``/``
If/IN
it/PRP
ai/VBP
n't/RB
broke/VBD
,/,
do/VBP
n't/RB
fix/VB
it/PRP
./.
''/''
But/CC
this/DT
could/MD
be/VB
a/DT
case/NN
where/WRB
we/PRP
all/DT
might/MD
go/VB
broke/RB
if/IN
it/PRP
is/VBZ
n't/RB
fixed/VBN
./.
Mr./NNP
Heller/NNP
,/,
now/RB
at/IN
VISA/NNP
International/NNP
,/,
was/VBD
a/DT
governor/NN
of/IN
the/DT
Federal/NNP
Reserve/NNP
Board/NNP
from/IN
1986/CD
until/IN
earlier/RBR
this/DT
year/NN
./.
This/DT
is/VBZ
adapted/VBN
from/IN
a/DT
speech/NN
to/TO
the/DT
Commonwealth/NNP
Club/NNP
in/IN
San/NNP
Francisco/NNP
./.
Bank/NNP
of/IN
England/NNP
Governor/NNP
Robin/NNP
Leigh-Pemberton/NNP
urged/VBD
banks/NNS
to/TO
be/VB
cautious/JJ
in/IN
financing/VBG
leveraged/JJ
buy-outs/NNS
./.
``/``
Caution/NN
should/MD
.../:
be/VB
the/DT
rule/NN
of/IN
the/DT
day/NN
,/,
''/''
said/VBD
Mr./NNP
Leigh-Pemberton/NNP
in/IN
a/DT
speech/NN
to/TO
the/DT
Association/NNP
of/IN
Corporate/NNP
Treasurers/NNPS
'/POS
annual/JJ
dinner/NN
./.
``/``
It/PRP
would/MD
be/VB
damaging/VBG
to/TO
industry/NN
and/CC
to/TO
the/DT
financial/JJ
sector/NN
in/IN
general/JJ
,/,
to/TO
say/VB
nothing/NN
of/IN
banks/NNS
,/,
if/IN
prudence/NN
does/VBZ
not/RB
guide/VB
the/DT
financing/NN
of/IN
leveraged/JJ
transactions/NNS
./.
''/''
His/PRP$
remarks/NNS
were/VBD
distributed/VBN
to/TO
the/DT
press/NN
before/IN
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
Nigel/NNP
Lawson/NNP
announced/VBD
his/PRP$
resignation/NN
last/JJ
evening/NN
./.
Bank/NNP
of/IN
England/NNP
officials/NNS
said/VBD
the/DT
central/JJ
bank/NN
had/VBD
no/DT
comment/NN
on/IN
Mr./NNP
Lawson/NNP
's/POS
resignation/NN
./.
Mr./NNP
Leigh-Pemberton/NNP
reiterated/VBD
that/IN
the/DT
exposure/NN
of/IN
United/NNP
Kingdom/NNP
banks/NNS
to/TO
leveraged/JJ
deals/NNS
have/VBP
n't/RB
yet/RB
reached/VBN
``/``
worrying/JJ
levels/NNS
./.
''/''
However/RB
,/,
in/IN
light/NN
of/IN
the/DT
risks/NNS
involved/VBN
in/IN
such/JJ
transactions/NNS
,/,
banks/NNS
should/MD
satisfy/VB
themselves/PRP
that/IN
they/PRP
have/VBP
the/DT
skills/NNS
to/TO
participate/VB
in/IN
this/DT
market/NN
and/CC
clear/JJ
policy/NN
guidelines/NNS
on/IN
acceptable/JJ
levels/NNS
of/IN
exposure/NN
to/TO
such/JJ
transactions/NNS
,/,
he/PRP
said/VBD
./.
In/IN
other/JJ
comments/NNS
,/,
he/PRP
said/VBD
takeovers/NNS
may/MD
not/RB
always/RB
be/VB
the/DT
most/RBS
efficient/JJ
way/NN
of/IN
securing/VBG
a/DT
change/NN
of/IN
corporate/JJ
direction/NN
or/CC
strategy/NN
./.
``/``
A/DT
similar/JJ
result/NN
could/MD
sometimes/RB
be/VB
achieved/VBN
,/,
at/IN
less/JJR
cost/NN
,/,
by/IN
changing/VBG
managements/NNS
,/,
''/''
he/PRP
said/VBD
./.
Intel/NNP
Corp./NNP
's/POS
most/RBS
powerful/JJ
computer/NN
chip/NN
has/VBZ
flaws/NNS
that/WDT
could/MD
delay/VB
several/JJ
computer/NN
makers/NNS
'/POS
marketing/NN
efforts/NNS
,/,
but/CC
the/DT
``/``
bugs/NNS
''/''
are/VBP
n't/RB
expected/VBN
to/TO
hurt/VB
Intel/NNP
and/CC
most/JJS
computer/NN
makers/NNS
./.
Computer/NN
experts/NNS
familiar/JJ
with/IN
the/DT
flaws/NNS
,/,
found/VBN
in/IN
Intel/NNP
's/POS
80486/CD
chip/NN
,/,
say/VBP
the/DT
defects/NNS
do/VBP
n't/RB
affect/VB
the/DT
average/JJ
user/NN
and/CC
are/VBP
likely/JJ
to/TO
be/VB
cleared/VBN
up/RB
before/IN
most/JJS
computers/NNS
using/VBG
the/DT
chip/NN
as/IN
their/PRP$
``/``
brains/NNS
''/''
appear/VBP
on/IN
the/DT
market/NN
sometime/RB
next/JJ
year/NN
./.
Intel/NNP
said/VBD
that/DT
last/JJ
week/NN
a/DT
customer/NN
discovered/VBD
two/CD
flaws/NNS
in/IN
its/PRP$
80486/CD
microprocessor/NN
chip/NN
's/POS
``/``
floating-point/NN
unit/NN
''/''
,/,
a/DT
set/NN
of/IN
circuits/NNS
that/WDT
do/VBP
certain/JJ
calculations/NNS
./.
On/IN
Friday/NNP
,/,
Intel/NNP
began/VBD
notifying/VBG
customers/NNS
about/IN
the/DT
bugs/NNS
which/WDT
cause/VBP
the/DT
chip/NN
to/TO
give/VB
wrong/JJ
answers/NNS
for/IN
some/DT
mathematical/JJ
calculations/NNS
./.
But/CC
while/IN
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
and/CC
Compaq/NNP
Computer/NNP
Corp./NNP
say/VBP
the/DT
bugs/NNS
will/MD
delay/VB
products/NNS
,/,
most/JJS
big/JJ
computer/NN
makers/NNS
said/VBD
the/DT
flaws/NNS
do/VBP
n't/RB
affect/VB
them/PRP
./.
``/``
Bugs/NNS
like/IN
this/DT
are/VBP
just/RB
a/DT
normal/JJ
part/NN
of/IN
product/NN
development/NN
,/,
''/''
said/VBD
Richard/NNP
Archuleta/NNP
,/,
director/NN
of/IN
Hewlett-Packard/NNP
Co./NNP
's/POS
advanced/JJ
systems/NNS
development/NN
./.
Hewlett/NNP
announced/VBD
last/JJ
week/NN
that/IN
it/PRP
planned/VBD
to/TO
ship/VB
a/DT
computer/NN
based/VBN
on/IN
the/DT
486/CD
chip/NN
early/JJ
next/JJ
year/NN
./.
``/``
These/DT
bugs/NNS
do/VBP
n't/RB
affect/VB
our/PRP$
schedule/NN
at/IN
all/DT
,/,
''/''
he/PRP
said/VBD
./.
Likewise/RB
,/,
AST/NNP
Research/NNP
Inc./NNP
and/CC
Sun/NNP
Microsystems/NNPS
Inc./NNP
said/VBD
the/DT
bugs/NNS
wo/MD
n't/RB
delay/VB
their/PRP$
development/NN
of/IN
486-based/JJ
machines/NNS
./.
``/``
We/PRP
have/VBP
n't/RB
modified/VBN
our/PRP$
schedules/NNS
in/IN
any/DT
way/NN
,/,
''/''
said/VBD
a/DT
Sun/NNP
spokesman/NN
./.
To/TO
switch/VB
to/TO
another/DT
vendor/NN
's/POS
chips/NNS
,/,
``/``
would/MD
definitely/RB
not/RB
be/VB
an/DT
option/NN
,/,
''/''
he/PRP
said/VBD
./.
Nonetheless/RB
,/,
concern/NN
about/IN
the/DT
chip/NN
may/MD
have/VB
been/VBN
responsible/JJ
for/IN
a/DT
decline/NN
of/IN
87.5/CD
cents/NNS
in/IN
Intel/NNP
's/POS
stock/NN
to/TO
$/$
32/CD
a/DT
share/NN
yesterday/NN
in/IN
over-the-counter/JJ
trading/NN
,/,
on/IN
volume/NN
of/IN
3,609,800/CD
shares/NNS
,/,
and/CC
partly/RB
responsible/JJ
for/IN
a/DT
drop/NN
in/IN
Compaq/NNP
's/POS
stock/NN
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/NN
trading/NN
on/IN
Wednesday/NNP
./.
Yesterday/NN
,/,
Compaq/NNP
plunged/VBD
further/RBR
,/,
closing/VBG
at/IN
$/$
100/CD
a/DT
share/NN
,/,
off/RB
$/$
8.625/CD
a/DT
share/NN
,/,
on/IN
volume/NN
of/IN
2,633,700/CD
shares/NNS
./.
Most/JJS
of/IN
Compaq/NNP
's/POS
decline/NN
is/VBZ
being/VBG
attributed/VBN
to/TO
a/DT
third-quarter/JJ
earnings/NN
report/NN
that/WDT
came/VBD
in/RB
at/IN
the/DT
low/JJ
end/NN
of/IN
analysts/NNS
'/POS
expectations/NNS
./.
Intel/NNP
said/VBD
it/PRP
had/VBD
corrected/VBN
the/DT
problems/NNS
and/CC
would/MD
start/VB
producing/VBG
bugless/JJ
chips/NNS
next/IN
week/NN
./.
``/``
We/PRP
should/MD
not/RB
be/VB
seeing/VBG
any/DT
more/JJR
,/,
''/''
said/VBD
Bill/NNP
Rash/NNP
,/,
Intel/NNP
's/POS
director/NN
for/IN
the/DT
486/CD
chip/NN
./.
What/WP
's/VBZ
more/JJR
,/,
the/DT
bugs/NNS
only/RB
emerge/VBP
on/IN
esoteric/JJ
applications/NNS
such/JJ
as/IN
computer-aided/JJ
design/NN
and/CC
scientific/JJ
calculations/NNS
,/,
he/PRP
said/VBD
,/,
and/CC
then/RB
very/RB
seldom/RB
./.
``/``
These/DT
errata/NNS
do/VBP
not/RB
affect/VB
business/NN
programs/NNS
,/,
''/''
he/PRP
said/VBD
./.
The/DT
bugs/NNS
will/MD
cause/VB
problems/NNS
in/IN
``/``
specific/JJ
and/CC
rare/JJ
circumstances/NNS
that/WDT
will/MD
not/RB
occur/VB
in/IN
typical/JJ
applications/NNS
''/''
such/JJ
as/IN
word-processing/NNS
and/CC
spreadsheets/NNS
,/,
said/VBD
Michael/NNP
Slater/NNP
,/,
editor/NN
of/IN
the/DT
Microprocessor/NNP
Report/NNP
,/,
an/DT
industry/NN
newsletter/NN
./.
Sun/NNP
,/,
Hewlett-Packard/NNP
and/CC
others/NNS
say/VBP
Intel/NNP
is/VBZ
n't/RB
wholly/RB
to/TO
blame/VB
for/IN
the/DT
snafu/NN
./.
The/DT
real/JJ
culprits/NNS
,/,
they/PRP
said/VBD
,/,
are/VBP
computer/NN
makers/NNS
such/JJ
as/IN
IBM/NNP
that/WDT
have/VBP
jumped/VBN
the/DT
gun/NN
to/TO
unveil/VB
486-based/JJ
products/NNS
./.
``/``
The/DT
reason/NN
this/DT
is/VBZ
getting/VBG
so/RB
much/JJ
visibility/NN
is/VBZ
that/IN
some/DT
started/VBD
shipping/NN
and/CC
announced/VBD
early/JJ
availability/NN
,/,
''/''
said/VBD
Hewlett-Packard/NNP
's/POS
Mr./NNP
Archuleta/NNP
./.
``/``
You/PRP
can/MD
do/VB
that/DT
but/CC
you/PRP
're/VBP
taking/VBG
a/DT
risk/NN
./.
Those/DT
companies/NNS
are/VBP
paying/VBG
the/DT
price/NN
for/IN
taking/VBG
the/DT
risk/NN
./.
''/''
In/IN
late/JJ
September/NNP
,/,
IBM/NNP
began/VBD
shipping/VBG
a/DT
plug-in/JJ
card/NN
that/WDT
converts/VBZ
its/PRP$
PS\/2/NNP
model/NN
70-A21/CD
from/IN
a/DT
80386/CD
machine/NN
to/TO
an/DT
80486/CD
machine/NN
./.
An/DT
IBM/NNP
spokeswoman/NN
said/VBD
the/DT
company/NN
told/VBD
customers/NNS
Monday/NNP
about/IN
the/DT
bugs/NNS
and/CC
temporarily/RB
stopped/VBD
shipping/VBG
the/DT
product/NN
./.
IBM/NNP
has/VBZ
no/DT
plans/NNS
to/TO
recall/VB
its/PRP$
add-on/JJ
cards/NNS
,/,
the/DT
spokeswoman/NN
said/VBD
,/,
and/CC
could/MD
probably/RB
circumvent/VB
the/DT
bugs/NNS
without/IN
long/JJ
product/NN
delays/NNS
./.
``/``
We/PRP
do/VBP
n't/RB
look/VB
at/IN
this/DT
as/IN
a/DT
major/JJ
problem/NN
for/IN
us/PRP
,/,
''/''
she/PRP
said/VBD
./.
Compaq/NNP
,/,
which/WDT
said/VBD
it/PRP
discovered/VBD
the/DT
bugs/NNS
,/,
still/RB
plans/VBZ
to/TO
announce/VB
new/JJ
486/CD
products/NNS
on/IN
Nov./NNP
6/CD
./.
Because/IN
of/IN
the/DT
glitch/NN
,/,
however/RB
,/,
the/DT
company/NN
said/VBD
it/PRP
does/VBZ
n't/RB
know/VB
when/WRB
its/PRP$
machine/NN
will/MD
be/VB
commercially/RB
available/JJ
./.
That/DT
's/VBZ
a/DT
break/NN
from/IN
Compaq/NNP
tradition/NN
,/,
because/IN
the/DT
company/NN
does/VBZ
n't/RB
announce/VB
products/NNS
until/IN
they/PRP
're/VBP
actually/RB
at/IN
the/DT
dealers/NNS
./.
The/DT
problem/NN
is/VBZ
being/VBG
ballyhooed/VBN
,/,
experts/NNS
say/VBP
,/,
because/IN
the/DT
486/CD
is/VBZ
Intel/NNP
's/POS
future/JJ
flagship/NN
./.
Intel/NNP
's/POS
microprocessors/NNS
are/VBP
the/DT
chips/NNS
of/IN
choice/NN
in/IN
many/JJ
of/IN
today/NN
's/POS
personal/JJ
computers/NNS
and/CC
the/DT
80486/CD
microprocessor/NN
is/VBZ
the/DT
spearhead/NN
of/IN
the/DT
company/NN
's/POS
bid/NN
to/TO
guard/VB
that/DT
spot/NN
in/IN
the/DT
next/JJ
generation/NN
of/IN
machines/NNS
./.
``/``
Although/IN
these/DT
sorts/NNS
of/IN
bugs/NNS
are/VBP
not/RB
at/IN
all/RB
uncommon/JJ
,/,
the/DT
486/CD
is/VBZ
an/DT
extremely/RB
high-profile/JJ
product/NN
,/,
''/''
said/VBD
Mr./NNP
Slater/NNP
,/,
the/DT
newsletter/NN
editor/NN
./.
Intel/NNP
's/POS
80486/CD
chip/NN
is/VBZ
the/DT
Corvette/NNP
of/IN
Intel/NNP
's/POS
microprocessors/NNS
,/,
a/DT
super-fast/JJ
,/,
super-expensive/JJ
chip/NN
that/IN
only/RB
the/DT
most/RBS
power-hungry/JJ
computer/NN
users/NNS
are/VBP
likely/JJ
to/TO
buy/VB
for/IN
at/IN
least/JJS
several/JJ
years/NNS
./.
Unveiled/VBN
last/JJ
April/NNP
,/,
the/DT
chip/NN
crams/VBZ
1.2/CD
million/CD
transistors/NNS
on/IN
a/DT
sliver/NN
of/IN
silicon/NN
,/,
more/JJR
than/IN
four/CD
times/CC
as/RB
many/JJ
as/IN
on/IN
Intel/NNP
's/POS
earlier/JJR
model/NN
,/,
80386/CD
./.
Intel/NNP
clocks/VBZ
the/DT
chip/NN
's/POS
speed/NN
at/IN
15/CD
million/CD
instructions/NNS
per/IN
second/NN
,/,
or/CC
MIPs/NNS
./.
That/DT
's/VBZ
four/CD
times/CC
as/RB
fast/JJ
as/IN
the/DT
386/CD
./.
Machines/NNS
using/VBG
the/DT
486/CD
are/VBP
expected/VBN
to/TO
challenge/VB
higher-priced/JJ
work/NN
stations/NNS
and/CC
minicomputers/NNS
in/IN
applications/NNS
such/JJ
as/IN
so-called/JJ
servers/NNS
,/,
which/WDT
connect/VBP
groups/NNS
of/IN
computers/NNS
together/RB
,/,
and/CC
in/IN
computer-aided/JJ
design/NN
./.
But/CC
while/IN
the/DT
chip/NN
's/POS
speed/NN
in/IN
processing/VBG
power/NN
is/VBZ
dazzling/JJ
,/,
it/PRP
's/POS
real/JJ
strength/NN
lies/VBZ
in/IN
its/PRP$
software/NN
inheritance/NN
./.
The/DT
486/CD
is/VBZ
the/DT
descendant/NN
of/IN
a/DT
long/JJ
series/NN
of/IN
Intel/NNP
chips/NNS
that/WDT
began/VBD
dominating/VBG
the/DT
market/NN
ever/RB
since/IN
IBM/NNP
picked/VBD
the/DT
16-bit/JJ
8088/CD
chip/NN
for/IN
its/PRP$
first/JJ
personal/JJ
computer/NN
./.
A/DT
16-bit/JJ
microprocessor/NN
processes/VBZ
16/CD
pieces/NNS
of/IN
data/NNS
at/IN
a/DT
time/NN
and/CC
is/VBZ
slower/JJR
than/IN
newer/JJR
,/,
32-bit/JJ
chips/NNS
./.
Intel/NNP
has/VBZ
cornered/VBN
a/DT
large/JJ
part/NN
of/IN
the/DT
market/NN
with/IN
successive/JJ
generations/NNS
of/IN
16-bit/JJ
and/CC
32-bit/JJ
chips/NNS
,/,
all/DT
of/IN
which/WDT
can/MD
run/VB
software/NN
written/VBN
for/IN
previous/JJ
models/NNS
./.
That/DT
's/VBZ
what/WP
will/MD
keep/VB
computer/NN
makers/NNS
coming/VBG
in/IN
spite/NN
of/IN
the/DT
irritation/NN
of/IN
bugs/NNS
./.
Big/JJ
personal/JJ
computer/NN
makers/NNS
and/CC
many/JJ
makers/NNS
of/IN
engineering/NN
workstations/NNS
are/VBP
developing/VBG
486-based/JJ
machines/NNS
,/,
which/WDT
are/VBP
expected/VBN
to/TO
reach/VB
the/DT
market/NN
early/JJ
next/JJ
year/NN
./.
Of/IN
the/DT
big/JJ
computer/NN
makers/NNS
,/,
only/RB
Apple/NNP
Computer/NNP
Co./NNP
bases/VBZ
its/PRP$
machines/NNS
on/IN
Motorola/NNP
chips/NNS
instead/RB
./.
``/``
The/DT
486/CD
is/VBZ
going/VBG
to/TO
have/VB
a/DT
big/JJ
impact/NN
on/IN
the/DT
industry/NN
,/,
''/''
said/VBD
Hewlett-Packard/NNP
's/POS
Mr./NNP
Archuleta/NNP
./.
``/``
It/PRP
's/VBZ
going/VBG
to/TO
be/VB
the/DT
leading/VBG
edge/NN
technology/NN
in/IN
personal/JJ
computers/NNS
for/IN
the/DT
next/JJ
few/JJ
years/NNS
./.
This/DT
bug/NN
is/VBZ
not/RB
going/VBG
to/TO
have/VB
any/DT
affect/VB
on/IN
that/DT
at/IN
all/DT
./.
''/''
Andy/NNP
Zipser/NNP
in/IN
Dallas/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Bethlehem/NNP
Steel/NNP
Corp./NNP
has/VBZ
agreed/VBN
in/IN
principle/NN
to/TO
form/VB
a/DT
joint/JJ
venture/NN
with/IN
the/DT
world/NN
's/POS
second-largest/JJ
steelmaker/NN
,/,
Usinor-Sacilor/NNP
of/IN
France/NNP
,/,
to/TO
modernize/VB
a/DT
portion/NN
of/IN
Bethlehem/NNP
's/POS
ailing/VBG
BethForge/NNP
division/NN
./.
The/DT
venture/NN
,/,
which/WDT
involves/VBZ
adding/VBG
sophisticated/JJ
equipment/NN
to/TO
make/VB
cast-iron/NN
mill/NN
rolls/NNS
,/,
is/VBZ
part/NN
of/IN
a/DT
two-pronged/JJ
effort/NN
to/TO
shore/VB
up/RP
a/DT
division/NN
that/WDT
has/VBZ
posted/VBN
continuing/VBG
operating/NN
losses/NNS
for/IN
several/JJ
years/NNS
./.
The/DT
other/JJ
element/NN
includes/VBZ
consolidating/VBG
BethForge/NNP
's/POS
press-forge/NN
operations/NNS
./.
The/DT
entire/JJ
division/NN
employs/VBZ
about/IN
850/CD
workers/NNS
./.
While/IN
the/DT
joint/JJ
venture/NN
affects/VBZ
only/RB
a/DT
small/JJ
part/NN
of/IN
Bethlehem/NNP
's/POS
operations/NNS
,/,
it/PRP
is/VBZ
significant/JJ
because/IN
it/PRP
marks/VBZ
the/DT
first/JJ
time/NN
the/DT
nation/NN
's/POS
No./NN
2/CD
steelmaker/NN
has/VBZ
joined/VBN
forces/NNS
with/IN
a/DT
foreign/JJ
partner/NN
./.
Wall/NNP
Street/NNP
analysts/NNS
have/VBP
criticized/VBN
Bethlehem/NNP
for/IN
not/RB
following/VBG
its/PRP$
major/JJ
competitors/NNS
in/IN
linking/VBG
with/IN
a/DT
foreign/JJ
company/NN
to/TO
share/VB
costs/NNS
and/CC
provide/VB
technology/NN
to/TO
modernize/VB
old/JJ
facilities/NNS
or/CC
build/VB
new/JJ
ones/NNS
./.
``/``
We/PRP
think/VBP
it/PRP
's/VBZ
a/DT
step/NN
in/IN
the/DT
right/JJ
direction/NN
for/IN
Bethlehem/NNP
,/,
''/''
said/VBD
Felix/NNP
Bello/NNP
,/,
WEFA/NNP
Group/NNP
's/POS
international/JJ
steel/NN
analyst/NN
./.
``/``
It/PRP
's/VBZ
important/JJ
to/TO
share/VB
the/DT
risk/NN
and/CC
even/RB
more/RBR
so/RB
when/WRB
the/DT
market/NN
has/VBZ
already/RB
peaked/VBN
./.
''/''
He/PRP
said/VBD
the/DT
move/NN
could/MD
be/VB
the/DT
beginning/NN
of/IN
a/DT
broader/JJR
relationship/NN
between/IN
the/DT
two/CD
companies/NNS
,/,
one/NN
that/WDT
could/MD
open/VB
up/RP
new/JJ
markets/NNS
for/IN
Bethlehem/NNP
./.
Bethlehem/NNP
had/VBD
little/JJ
choice/NN
but/CC
to/TO
go/VB
with/IN
a/DT
European/JJ
steelmaker/NN
,/,
because/IN
its/PRP$
competitors/NNS
already/RB
have/VB
tapped/VBN
the/DT
Japanese/JJ
and/CC
South/JJ
Korean/JJ
industry/NN
leaders/NNS
,/,
analysts/NNS
noted/VBD
./.
Under/IN
terms/NNS
of/IN
the/DT
agreement/NN
,/,
Usinor/NNP
's/POS
Chavanne-Ketin/NNP
unit/NN
and/CC
Bethlehem/NNP
would/MD
establish/VB
a/DT
modernized/JJ
facility/NN
to/TO
make/VB
cast-iron/NN
mill/NN
rolls/NNS
at/IN
the/DT
company/NN
's/POS
cast-iron/NN
shop/NN
here/RB
./.
Terms/NNS
for/IN
the/DT
venture/NN
,/,
which/WDT
would/MD
be/VB
jointly/RB
owned/VBN
by/IN
both/DT
companies/NNS
,/,
were/VBD
n't/RB
disclosed/VBN
./.
The/DT
Usinor/NNP
unit/NN
has/VBZ
agreed/VBN
to/TO
provide/VB
technology/NN
and/CC
expertise/NN
to/TO
install/VB
a/DT
so-called/JJ
spin/NN
caster/NN
by/IN
early/JJ
next/JJ
fall/NN
./.
The/DT
caster/NN
improves/VBZ
the/DT
metallurgical/JJ
quality/NN
of/IN
the/DT
iron/NN
mill/NN
rolls/NNS
,/,
which/WDT
are/VBP
basically/RB
huge/JJ
rolling/VBG
pins/NNS
used/VBN
to/TO
flatten/VB
or/CC
shape/VB
steel/NN
products/NNS
./.
Bethlehem/NNP
is/VBZ
also/RB
working/VBG
with/IN
the/DT
United/NNP
Steelworkers/NNPS
union/NN
to/TO
consolidate/VB
BethForge/NNP
's/POS
two/CD
machine/NN
shops/NNS
and/CC
four/CD
heat-treatment/NN
facilities/NNS
of/IN
the/DT
press-forge/NN
operations/NNS
./.
Once/RB
the/DT
consolidation/NN
is/VBZ
complete/JJ
,/,
Bethlehem/NNP
plans/VBZ
to/TO
concentrate/VB
its/PRP$
forgings/NNS
business/NN
on/IN
nuclear/JJ
fabrication/NN
,/,
hardened/VBN
steel/NN
and/CC
large-diameter/JJ
steel/NN
rolls/NNS
for/IN
rolling/VBG
mills/NNS
and/CC
selected/VBN
custom-die/NN
applications/NNS
./.
Bethlehem/NNP
said/VBD
earlier/RBR
this/DT
year/NN
that/IN
it/PRP
planned/VBD
to/TO
restructure/NN
the/DT
BethForge/NNP
division/NN
to/TO
improve/VB
its/PRP$
cost/NN
structure/NN
./.
In/IN
the/DT
second/JJ
quarter/NN
,/,
Bethlehem/NNP
posted/VBD
a/DT
$/$
50/CD
million/CD
charge/NN
related/JJ
to/TO
its/PRP$
plans/NNS
to/TO
realign/VB
the/DT
division/NN
./.
If/IN
you/PRP
're/VBP
still/RB
wondering/VBG
about/IN
the/DT
causes/NNS
of/IN
the/DT
slump/NN
in/IN
the/DT
junk-bond/NN
market/NN
,/,
consider/VB
the/DT
case/NN
of/IN
Columbia/NNP
Savings/NNPS
&/CC
Loan/NNP
./.
The/DT
California/NNP
thrift/NN
has/VBZ
just/RB
announced/VBN
a/DT
$/$
226/CD
million/CD
third-quarter/NN
loss/NN
./.
How/WRB
did/VBD
this/DT
happen/VB
?/.
Well/RB
,/,
when/WRB
Congress/NNP
in/IN
its/PRP$
recent/JJ
S&L/NN
bailout/NN
mandated/VBD
that/IN
the/DT
thrifts/NNS
sell/VB
off/RP
all/DT
their/PRP$
junk-bond/NN
holdings/NNS
by/IN
1994/CD
,/,
it/PRP
not/RB
only/RB
artificially/RB
increased/VBD
the/DT
supply/NN
of/IN
these/DT
bonds/NNS
in/IN
the/DT
market/NN
but/CC
also/RB
eliminated/VBD
one/CD
of/IN
the/DT
few/JJ
profitable/JJ
investments/NNS
thrifts/NNS
have/VBP
made/VBN
./.
But/CC
there/EX
is/VBZ
a/DT
grimly/RB
ironic/JJ
twist/NN
to/TO
the/DT
Columbia/NNP
loss/NN
./.
As/IN
followers/NNS
of/IN
the/DT
debate/NN
over/IN
a/DT
capital-gains/NNS
tax/NN
cut/NN
know/VBP
,/,
there/EX
is/VBZ
much/JJ
talk/NN
in/IN
Congress/NNP
and/CC
indeed/RB
all/DT
over/IN
Washington/NNP
about/IN
the/DT
need/NN
to/TO
``/``
encourage/VB
''/''
long-term/JJ
investment/NN
and/CC
discourage/VB
the/DT
financial/JJ
sector/NN
's/POS
presumed/JJ
obsession/NN
with/IN
the/DT
short/JJ
term/NN
./.
Now/RB
,/,
we/PRP
regard/VBP
this/DT
as/IN
a/DT
largely/RB
phony/JJ
issue/NN
,/,
but/CC
the/DT
``/``
long/JJ
term/NN
''/''
is/VBZ
nonetheless/RB
a/DT
big/JJ
salon/NN
topic/NN
all/DT
around/IN
the/DT
Beltway/NNP
./.
It/PRP
turns/VBZ
out/RP
that/IN
Columbia/NNP
had/VBD
this/DT
huge/JJ
loss/NN
in/IN
large/JJ
part/NN
because/IN
the/DT
new/JJ
congressionally/RB
mandated/VBN
rules/NNS
forced/VBD
it/PRP
to/TO
adjust/VB
the/DT
book/NN
value/NN
of/IN
its/PRP$
soon-to-be-sold/JJ
junk/NN
bonds/NNS
to/TO
the/DT
lower/JJR
of/IN
either/DT
their/PRP$
cost/NN
or/CC
market/NN
value/NN
./.
They/PRP
could/MD
no/RB
longer/RB
be/VB
classified/VBN
as/IN
what/WP
Columbia/NNP
regarded/VBD
them/PRP
,/,
namely/RB
long-term/JJ
investments/NNS
./.
Congress/NNP
's/POS
ham-handed/JJ
treatment/NN
of/IN
the/DT
existing/VBG
structure/NN
of/IN
junk-bond/NN
holdings/NNS
reminds/VBZ
us/PRP
of/IN
a/DT
story/NN
in/IN
the/DT
Journal/NNP
earlier/RBR
this/DT
year/NN
about/IN
the/DT
Baby/NNP
Bell/NNP
companies/NNS
'/POS
desire/NN
to/TO
have/VB
the/DT
court-ordered/JJ
bans/NNS
lifted/VBN
on/IN
offering/VBG
information/NN
services/NNS
./.
The/DT
issue/NN
of/IN
seeking/VBG
relief/NN
from/IN
Congress/NNP
was/VBD
raised/VBN
to/TO
Delbert/NNP
Staley/NNP
,/,
the/DT
chairman/NN
of/IN
Nynex/NNP
./.
Mr./NNP
Staley/NNP
replied/VBD
:/:
``/``
Legislation/NN
tends/VBZ
to/TO
be/VB
compromised/VBN
./.
I/PRP
believe/VBP
we/PRP
have/VBP
to/TO
take/VB
a/DT
shot/NN
at/IN
getting/VBG
as/RB
much/JJ
done/VBN
as/IN
we/PRP
can/MD
through/IN
the/DT
court/NN
,/,
through/IN
Justice/NN
and/CC
through/IN
state/NN
and/CC
federal/JJ
regulatory/JJ
agencies/NNS
./.
I/PRP
see/VBP
Congress/NNP
as/IN
a/DT
last/JJ
resort/NN
./.
''/''
Healthy/JJ
thrifts/NNS
such/JJ
as/IN
Columbia/NNP
or/CC
the/DT
junk-bond/NN
market/NN
itself/PRP
should/MD
have/VB
been/VBN
so/RB
lucky/JJ
./.
The/DT
reality/NN
of/IN
life/NN
in/IN
modern/JJ
America/NNP
is/VBZ
that/IN
if/IN
you/PRP
want/VBP
to/TO
wreck/VB
something/NN
that/WDT
works/VBZ
,/,
let/VB
it/PRP
fall/VB
into/IN
the/DT
hands/NNS
of/IN
Congress/NNP
./.
Exxon/NNP
Corp./NNP
said/VBD
it/PRP
will/MD
move/VB
its/PRP$
headquarters/NN
from/IN
Manhattan/NNP
to/TO
Dallas/NNP
./.
Most/JJS
of/IN
the/DT
300/CD
employees/NNS
at/IN
the/DT
oil/NN
company/NN
's/POS
midtown/JJ
headquarters/NN
building/NN
--/:
including/VBG
much/JJ
of/IN
senior/JJ
management/NN
--/:
were/VBD
unaware/JJ
of/IN
the/DT
plan/NN
until/IN
informed/VBN
at/IN
a/DT
morning/NN
meeting/NN
by/IN
Chairman/NNP
Lawrence/NNP
G./NNP
Rawl/NNP
./.
The/DT
shift/NN
wo/MD
n't/RB
affect/VB
operations/NNS
./.
As/IN
part/NN
of/IN
its/PRP$
restructuring/NN
several/JJ
years/NNS
ago/RB
,/,
Exxon/NNP
moved/VBD
most/JJS
of/IN
those/DT
out/IN
of/IN
the/DT
city/NN
and/CC
sold/VBD
its/PRP$
53-floor/JJ
Rockefeller/NNP
Center/NNP
skyscraper/NN
to/TO
a/DT
Japanese/JJ
company/NN
./.
But/CC
the/DT
pullout/NN
is/VBZ
an/DT
embarrassment/NN
to/TO
New/NNP
York/NNP
City/NNP
officials/NNS
,/,
coming/VBG
at/IN
a/DT
time/NN
of/IN
high/JJ
office/NN
building/NN
vacancy/NN
rates/NNS
and/CC
departures/NNS
by/IN
other/JJ
major/JJ
companies/NNS
./.
Mobil/NNP
Corp./NNP
is/VBZ
in/IN
the/DT
process/NN
of/IN
vacating/VBG
its/PRP$
headquarters/NNS
here/RB
,/,
and/CC
huge/JJ
operations/NNS
like/IN
J.C./NNP
Penney/NNP
&/CC
Co./NNP
and/CC
Trans/NNP
World/NNP
Airlines/NNPS
have/VBP
recently/RB
left/VBN
./.
New/NNP
York/NNP
authorities/NNS
,/,
informed/VBN
yesterday/NN
about/IN
the/DT
move/NN
,/,
reacted/VBD
with/IN
concern/NN
and/CC
even/RB
some/DT
anger/NN
to/TO
the/DT
idea/NN
of/IN
the/DT
nation/NN
's/POS
third-largest/JJ
corporation/NN
leaving/VBG
without/IN
giving/VBG
them/PRP
an/DT
opportunity/NN
to/TO
accommodate/VB
it/PRP
./.
``/``
We/PRP
are/VBP
dismayed/JJ
,/,
but/CC
there/EX
's/VBZ
nothing/NN
we/PRP
can/MD
do/VB
about/IN
it/PRP
now/RB
,/,
''/''
said/VBD
Stanley/NNP
Grayson/NNP
,/,
New/NNP
York/NNP
City/NNP
deputy/NN
mayor/NN
for/IN
finance/NN
and/CC
economic/JJ
development/NN
./.
Meanwhile/RB
,/,
Dallas/NNP
welcomed/VBD
the/DT
move/NN
./.
City/NN
officials/NNS
there/EX
had/VBD
been/VBN
were/VBD
aware/JJ
that/IN
a/DT
large/JJ
company/NN
was/VBD
moving/VBG
in/RP
,/,
but/CC
negotiations/NNS
had/VBD
all/DT
been/VBN
conducted/VBN
through/IN
a/DT
law/NN
firm/NN
and/CC
under/IN
the/DT
code/NN
name/NN
``/``
Everglades/NNS
./.
''/''
``/``
When/WRB
we/PRP
were/VBD
told/VBD
it/PRP
was/VBD
Exxon/NNP
,/,
it/PRP
was/VBD
beyond/IN
all/DT
expectations/NNS
;/:
what/WP
a/DT
coup/NN
,/,
''/''
said/VBD
Tom/NNP
Lewis/NNP
,/,
senior/JJ
vice/NN
president/NN
of/IN
Dallas/NNP
Partnership/NNP
,/,
the/DT
economic/JJ
development/NN
affiliate/NN
of/IN
the/DT
city/NN
's/POS
Chamber/NNP
of/IN
Commerce/NNP
./.
Dallas/NNP
,/,
its/PRP$
economy/NN
based/VBN
on/IN
oil/NN
and/CC
real/JJ
estate/NN
,/,
has/VBZ
been/VBN
in/IN
a/DT
slump/NN
./.
Exxon/NNP
said/VBD
it/PRP
will/MD
build/VB
a/DT
new/JJ
headquarters/NN
on/IN
a/DT
132-acre/JJ
tract/NN
in/IN
the/DT
10-year-old/JJ
Las/NNP
Colinas/NNP
complex/NN
in/IN
the/DT
suburb/NN
of/IN
Irving/NNP
./.
Until/IN
the/DT
building/NN
is/VBZ
completed/VBN
,/,
Exxon/NNP
will/MD
rent/VB
part/NN
of/IN
an/DT
existing/VBG
office/NN
tower/NN
./.
Las/NNP
Colinas/NNP
,/,
once/RB
a/DT
huge/JJ
Texas/NNP
ranch/NN
,/,
is/VBZ
a/DT
sprawling/VBG
complex/NN
of/IN
office/NN
buildings/NNS
,/,
homes/NNS
and/CC
recreational/JJ
facilities/NNS
that/IN
its/PRP$
developers/NNS
have/VBP
been/VBN
struggling/VBG
to/TO
populate/VB
in/IN
recent/JJ
years/NNS
./.
Exxon/NNP
officials/NNS
said/VBD
it/PRP
will/MD
cost/VB
less/JJR
to/TO
run/VB
its/PRP$
headquarters/NN
at/IN
Las/NNP
Colinas/NNP
than/IN
in/IN
New/NNP
York/NNP
./.
The/DT
company/NN
wo/MD
n't/RB
say/VB
how/WRB
much/JJ
it/PRP
will/MD
save/VB
,/,
but/CC
during/IN
at/IN
its/PRP$
interim/NN
location/NN
,/,
sources/NNS
say/VBP
it/PRP
will/MD
likely/RB
pay/VB
rent/VB
of/IN
$/$
10/CD
to/TO
$/$
15/CD
per/IN
square/JJ
foot/NN
./.
Owners/NNS
of/IN
the/DT
building/NN
in/IN
New/NNP
York/NNP
say/VBP
they/PRP
will/MD
be/VB
asking/VBG
$/$
50/CD
per/IN
square/JJ
foot/NN
for/IN
rent/NN
to/TO
fill/VB
the/DT
space/NN
that/IN
Exxon/NNP
is/VBZ
vacating/VBG
./.
In/IN
Texas/NNP
,/,
taxes/NNS
and/CC
development/NN
costs/NNS
are/VBP
also/RB
lower/JJR
,/,
they/PRP
said/VBD
./.
Plus/CC
,/,
one/CD
Exxon/NNP
official/NN
said/VBD
,/,
by/IN
eliminating/VBG
the/DT
typically/RB
long/JJ
New/NNP
York/NNP
commutes/NNS
between/IN
office/NN
and/CC
home/NN
,/,
management/NN
will/MD
expect/VB
employees/NNS
to/TO
work/VB
40/CD
hours/NNS
a/DT
week/NN
in/IN
Dallas/NNP
,/,
rather/RB
than/IN
a/DT
35-hour/JJ
work/NN
week/NN
in/IN
New/NNP
York/NNP
./.
Canadian/JJ
production/NN
of/IN
market/NN
pulp/NN
rose/VBD
1/CD
%/NN
in/IN
September/NNP
from/IN
a/DT
year/NN
earlier/RB
as/IN
the/DT
industry/NN
operated/VBD
at/IN
87/CD
%/NN
of/IN
capacity/NN
./.
The/DT
Canadian/NNP
Pulp/NNP
and/CC
Paper/NNP
Association/NNP
,/,
an/DT
industry/NN
group/NN
,/,
said/VBD
Canadian/JJ
mills/NNS
produced/VBD
532,000/CD
metric/JJ
tons/NNS
of/IN
market/NN
pulp/NN
in/IN
September/NNP
,/,
compared/VBN
with/IN
527,000/CD
metric/JJ
tons/NNS
a/DT
year/NN
earlier/RB
./.
Market/NN
pulp/NN
is/VBZ
wood/NN
pulp/NN
sold/VBN
on/IN
the/DT
open/JJ
market/NN
to/TO
producers/NNS
of/IN
paper/NN
and/CC
other/JJ
products/NNS
./.
The/DT
statistics/NNS
exclude/VBP
pulp/NN
consumed/VBN
at/IN
the/DT
producing/VBG
mill/NN
or/CC
shipped/VBN
to/TO
another/DT
mill/NN
that/WDT
is/VBZ
affiliated/JJ
with/IN
the/DT
producing/VBG
mill/NN
./.
Canada/NNP
is/VBZ
the/DT
world/NN
's/POS
largest/JJS
producer/NN
of/IN
market/NN
pulp/NN
./.
The/DT
September/NNP
87/CD
%/NN
operating/NN
rate/NN
compared/VBN
with/IN
a/DT
rate/NN
of/IN
101/CD
%/NN
in/IN
August/NNP
but/CC
was/VBD
unchanged/JJ
from/IN
a/DT
year/NN
earlier/RB
./.
In/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
this/DT
year/NN
output/NN
was/VBD
5,377,000/CD
metric/JJ
tons/NNS
,/,
down/RB
from/IN
5,441,000/CD
metric/JJ
tons/NNS
a/DT
year/NN
earlier/RB
./.
IMA/NNP
Holdings/NNPS
Corp./NNP
completed/VBD
its/PRP$
$/$
3/CD
billion/CD
acquisition/NN
of/IN
American/NNP
Medical/NNP
International/NNP
Inc./NNP
,/,
purchasing/VBG
63/CD
million/CD
shares/NNS
,/,
or/CC
86/CD
%/NN
,/,
of/IN
the/DT
Los/NNP
Angeles-based/JJ
health-care/NN
services/NNS
concern/NN
for/IN
$/$
26.50/CD
a/DT
share/NN
./.
The/DT
price/NN
also/RB
includes/VBZ
assumption/NN
of/IN
about/IN
$/$
1.4/CD
billion/CD
in/IN
debt/NN
./.
IMA/NNP
is/VBZ
a/DT
group/NN
that/WDT
includes/VBZ
First/NNP
Boston/NNP
Corp./NNP
and/CC
the/DT
Pritzker/NNP
family/NN
of/IN
Chicago/NNP
through/IN
the/DT
leveraged/JJ
buy-out/NN
fund/NN
Harry/NNP
Gray/NNP
Melvyn/NNP
Klein/NNP
&/CC
Partners/NNPS
./.
Harry/NNP
J./NNP
Gray/NNP
and/CC
Melvyn/NNP
N./NNP
Klein/NNP
,/,
along/IN
with/IN
five/CD
other/JJ
IMA/NNP
designees/NNS
,/,
were/VBD
named/VBN
to/TO
join/VB
American/NNP
Medical/NNP
's/POS
10-member/JJ
board/NN
./.
The/DT
completion/NN
of/IN
the/DT
merger/NN
agreement/NN
follows/VBZ
months/NNS
of/IN
twists/NNS
and/CC
turns/NNS
./.
In/IN
January/NNP
,/,
American/NNP
Medical/NNP
brought/VBD
in/IN
a/DT
new/JJ
chief/JJ
executive/NN
officer/NN
,/,
Richard/NNP
A./NN
Gilleland/NNP
,/,
45/CD
,/,
who/WP
will/MD
remain/VB
as/IN
chairman/NN
,/,
president/NN
and/CC
chief/JJ
executive/NN
./.
A/DT
few/JJ
days/NNS
later/RB
,/,
American/NNP
Medical/NNP
announced/VBD
sharply/RB
lower/JJR
earnings/NNS
,/,
taking/VBG
charges/NNS
of/IN
$/$
24/CD
million/CD
for/IN
insurance/NN
reserves/NNS
and/CC
canceled/VBN|JJ
real/JJ
estate/NN
leases/NNS
./.
In/IN
March/NNP
,/,
American/NNP
Medical/NNP
received/VBD
a/DT
$/$
24-a-share/JJ
offer/NN
to/TO
take/VB
the/DT
company/NN
private/RB
from/IN
an/DT
investor/NN
group/NN
including/VBG
large/JJ
holder/NN
M./NNP
Lee/NNP
Pearce/NNP
./.
It/PRP
also/RB
was/VBD
considering/VBG
a/DT
restructuring/NN
to/TO
help/VB
boost/VB
the/DT
stock/NN
price/NN
./.
A/DT
group/NN
including/VBG
several/JJ
members/NNS
of/IN
the/DT
the/DT
Bass/NNP
family/NN
of/IN
Texas/NNP
urged/VBD
the/DT
company/NN
to/TO
take/VB
some/DT
steps/NNS
to/TO
maximize/VB
shareholder/NN
value/NN
./.
The/DT
following/VBG
month/NN
,/,
the/DT
company/NN
put/VBD
itself/PRP
up/RP
for/IN
sale/NN
./.
It/PRP
received/VBD
more/JJR
offers/NNS
,/,
but/CC
the/DT
auction/NN
was/VBD
surprisingly/RB
won/VBN
by/IN
IMA/NNP
,/,
which/WDT
bid/VBD
$/$
28/CD
a/DT
share/NN
and/CC
asked/VBD
Mr./NNP
Gilleland/NNP
to/TO
stay/VB
on/IN
as/IN
an/DT
equity/NN
participant/NN
./.
He/PRP
indicated/VBD
that/IN
some/DT
assets/NNS
might/MD
be/VB
sold/VBN
off/RB
to/TO
service/VB
the/DT
debt/NN
./.
Then/RB
,/,
after/IN
extending/VBG
its/PRP$
offer/NN
four/CD
times/NNS
waiting/VBG
for/IN
a/DT
congressional/JJ
tax/NN
ruling/NN
,/,
IMA/NNP
early/RB
this/DT
month/NN
lowered/VBD
its/PRP$
offer/NN
to/TO
$/$
26.50/CD
a/DT
share/NN
amid/IN
turbulence/NN
in/IN
the/DT
junk/NN
bond/NN
market/NN
./.
American/NNP
Medical/NNP
accepted/VBD
the/DT
offer/NN
,/,
meanwhile/RB
indicating/VBG
it/PRP
had/VBD
heard/VBN
from/IN
two/CD
other/JJ
suitors/NNS
./.
But/CC
they/PRP
never/RB
materialized/VBD
and/CC
IMA/NNP
completed/VBD
the/DT
purchase/NN
yesterday/NN
./.
Other/JJ
new/JJ
board/NN
members/NNS
include/VBP
John/NNP
S./NNP
Harrison/NNP
and/CC
Mark/NNP
A./NN
Adley/NNP
of/IN
First/NNP
Boston/NNP
,/,
James/NNP
F./NNP
Lyons/NNP
,/,
William/NNP
S./NNP
Goldberg/NNP
and/CC
Harold/NNP
S./NNP
Handelsman/NNP
./.
Treasury/NNP
Secretary/NNP
Nicholas/NNP
Brady/NNP
said/VBD
that/IN
Congress/NNP
should/MD
grant/VB
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
the/DT
power/NN
to/TO
close/VB
the/DT
stock/NN
markets/NNS
in/IN
periods/NNS
of/IN
crisis/NN
./.
In/IN
testimony/NN
to/TO
the/DT
Senate/NNP
securities/NNS
subcommittee/NN
,/,
Mr./NNP
Brady/NNP
disputed/VBD
the/DT
view/NN
of/IN
SEC/NNP
Chairman/NNP
Richard/NNP
Breeden/NNP
,/,
who/WP
told/VBD
a/DT
House/NNP
panel/NN
Wednesday/NNP
that/IN
he/PRP
does/VBZ
n't/RB
want/VB
the/DT
ability/NN
to/TO
halt/VB
the/DT
markets/NNS
./.
Mr./NNP
Breeden/NNP
contended/VBD
that/DT
discretionary/JJ
power/NN
could/MD
have/VB
an/DT
impact/NN
on/IN
the/DT
markets/NNS
if/IN
rumors/NNS
were/VBD
to/TO
circulate/VB
about/IN
when/WRB
the/DT
exchanges/NNS
might/MD
be/VB
closed/VBN
./.
He/PRP
added/VBD
that/IN
the/DT
president/NN
already/RB
has/VBZ
the/DT
power/NN
to/TO
close/VB
the/DT
markets/NNS
in/IN
an/DT
emergency/NN
./.
But/CC
Mr./NNP
Brady/NNP
argued/VBD
that/IN
the/DT
SEC/NNP
is/VBZ
closer/JJR
to/TO
the/DT
markets/NNS
and/CC
in/IN
a/DT
better/JJR
position/NN
to/TO
understand/VB
when/WRB
the/DT
exchanges/NNS
are/VBP
under/IN
such/JJ
stress/NN
that/IN
they/PRP
should/MD
be/VB
closed/VBN
./.
Separately/RB
,/,
Mr./NNP
Brady/NNP
said/VBD
he/PRP
asked/VBD
the/DT
Working/NNP
Group/NNP
on/IN
Financial/NNP
Markets/NNPS
to/TO
determine/VB
whether/IN
futures/NNS
margins/NNS
are/VBP
too/RB
low/JJ
./.
He/PRP
noted/VBD
that/IN
some/DT
minimum/NN
margin/NN
requirements/NNS
have/VBP
been/VBN
reduced/VBN
to/TO
levels/NNS
below/IN
those/DT
before/IN
the/DT
1987/CD
crash/NN
./.
``/``
This/DT
raises/VBZ
questions/NNS
whether/IN
futures/NNS
and/CC
equity/NN
margin/NN
requirements/NNS
are/VBP
consistent/JJ
at/IN
these/DT
levels/NNS
and/CC
whether/IN
futures/NNS
margins/NNS
are/VBP
adequate/JJ
,/,
''/''
Mr./NNP
Brady/NNP
said/VBD
./.
Margins/NNS
are/VBP
the/DT
amount/NN
of/IN
money/NN
an/DT
investor/NN
needs/VBZ
to/TO
put/VB
up/RB
to/TO
buy/VB
or/CC
sell/VB
a/DT
futures/NNS
contract/NN
./.
Margins/NNS
on/IN
the/DT
futures/NNS
exchanges/NNS
typically/RB
are/VBP
raised/VBN
and/CC
lowered/VBN
according/VBG
to/TO
market/NN
volatility/NN
./.
The/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
margins/NNS
for/IN
the/DT
Standard/NNP
&/CC
Poor/NNP
's/POS
500/CD
stock-index/NN
futures/NNS
stood/VBD
at/IN
$/$
10,000/CD
a/DT
contract/NN
for/IN
speculators/NNS
and/CC
$/$
5,000/CD
for/IN
hedgers/NNS
before/IN
Oct./NNP
16/CD
,/,
1987/CD
;/:
that/DT
day/NN
the/DT
hedging/VBG
margin/NN
was/VBD
raised/VBN
to/TO
$/$
7,500/CD
./.
Margins/NNS
were/VBD
raised/VBN
or/CC
lowered/VBN
about/IN
a/DT
dozen/NN
times/NNS
since/IN
the/DT
crash/NN
Oct./NNP
19/CD
,/,
1987/CD
./.
Currently/RB
,/,
they/PRP
stand/VBP
at/IN
$/$
12,000/CD
for/IN
speculators/NNS
,/,
who/WP
are/VBP
typically/RB
individuals/NNS
and/CC
non-member/NN
traders/NNS
,/,
and/CC
$/$
6,000/CD
for/IN
hedgers/NNS
,/,
which/WDT
are/VBP
usually/RB
institutions/NNS
and/CC
have/VBP
offsetting/VBG
positions/NNS
in/IN
the/DT
underlying/VBG
stocks/NNS
./.
Mr./NNP
Brady/NNP
also/RB
said/VBD
he/PRP
expects/VBZ
the/DT
leveraged/JJ
buy-out/NN
phenomenon/NN
to/TO
``/``
end/VB
under/IN
(/(
its/PRP$
own/JJ
weight/NN
./.
''/''
Asked/VBN
whether/IN
there/EX
is/VBZ
anything/NN
Congress/NNP
should/MD
do/VB
to/TO
curb/VB
the/DT
LBO/NN
boom/NN
,/,
Mr./NNP
Brady/NNP
responded/VBD
,/,
``/``
I/PRP
think/VBP
the/DT
LBO/NN
phenomenon/NN
,/,
(/(
while/IN
)/)
it/PRP
wo/MD
n't/RB
stop/VB
completely/RB
,/,
will/MD
be/VB
a/DT
thing/NN
of/IN
the/DT
past/NN
./.
''/''
Before/IN
taking/VBG
any/DT
action/NN
,/,
he/PRP
advised/VBD
the/DT
panel/NN
to/TO
``/``
see/VB
what/WP
the/DT
market/NN
has/VBZ
produced/VBN
as/IN
a/DT
cure/NN
./.
''/''
Mr./NNP
Brady/NNP
also/RB
agreed/VBD
with/IN
senators/NNS
'/POS
concerns/NNS
about/IN
recent/JJ
stock-market/NN
volatility/NN
,/,
and/CC
said/VBD
he/PRP
realizes/VBZ
that/IN
the/DT
gyrations/NNS
are/VBP
scaring/VBG
investors/NNS
from/IN
investing/VBG
in/IN
stocks/NNS
./.
But/CC
he/PRP
added/VBD
that/IN
individuals/NNS
still/RB
are/VBP
participating/VBG
in/IN
the/DT
equity/NN
market/NN
indirectly/RB
through/IN
mutual/JJ
funds/NNS
and/CC
pension/NN
funds/NNS
./.
The/DT
former/JJ
Wall/NNP
Street/NNP
executive/NN
refused/VBD
to/TO
offer/VB
an/DT
opinion/NN
on/IN
the/DT
controversy/NN
surrounding/VBG
program/NN
trading/NN
,/,
which/WDT
has/VBZ
recently/RB
become/VBN
a/DT
larger/JJR
part/NN
of/IN
the/DT
trading/NN
in/IN
the/DT
market/NN
and/CC
has/VBZ
been/VBN
blamed/VBN
for/IN
accelerating/VBG
the/DT
drop/NN
two/CD
weeks/NNS
ago/RB
./.
``/``
I/PRP
do/VBP
not/RB
have/VB
a/DT
view/NN
of/IN
whether/IN
we/PRP
should/MD
do/VB
anything/NN
about/IN
program/NN
trading/NN
at/IN
this/DT
time/NN
,/,
''/''
he/PRP
said/VBD
./.
But/CC
Mr./NNP
Brady/NNP
endorsed/VBD
the/DT
market-revision/NN
bill/NN
that/IN
both/DT
houses/NNS
of/IN
Congress/NNP
will/MD
try/VB
to/TO
push/VB
through/IN
this/DT
session/NN
./.
That/DT
bill/NN
,/,
proposed/VBN
by/IN
the/DT
SEC/NNP
last/JJ
year/NN
,/,
would/MD
require/VB
brokerage/NN
firms/NNS
to/TO
disclose/VB
the/DT
financial/JJ
positions/NNS
of/IN
their/PRP$
holding/VBG
companies/NNS
,/,
mandate/VB
large/JJ
traders/NNS
'/POS
reporting/NN
of/IN
program/NN
or/CC
block/NN
trades/NNS
,/,
and/CC
improve/VB
clearing/VBG
and/CC
settlement/NN
of/IN
trades/NNS
between/IN
the/DT
futures/NNS
and/CC
stock/NN
markets/NNS
./.
The/DT
bill/NN
also/RB
would/MD
give/VB
the/DT
SEC/NNP
the/DT
power/NN
to/TO
close/VB
the/DT
markets/NNS
,/,
a/DT
discretion/NN
that/IN
former/JJ
SEC/NNP
Chairman/NNP
David/NNP
Ruder/NNP
wanted/VBD
but/CC
Mr./NNP
Breeden/NNP
does/VBZ
n't/RB
./.
Mr./NNP
Brady/NNP
and/CC
senators/NNS
agreed/VBD
to/TO
have/VB
their/PRP$
staffs/NNS
meet/VB
within/IN
the/DT
next/JJ
week/NN
to/TO
start/VB
fine-tuning/VB
the/DT
bill/NN
./.
The/DT
Senate/NNP
Agriculture/NNP
Committee/NNP
is/VBZ
responding/VBG
to/TO
trading/NN
abuses/NNS
in/IN
the/DT
futures/NNS
markets/NNS
with/IN
a/DT
far-reaching/JJ
bill/NN
that/WDT
would/MD
become/VB
the/DT
Futures/NNPS
Trading/NNP
Practices/NNPS
Act/NNP
of/IN
1989/CD
./.
The/DT
proposed/VBN
legislation/NN
has/VBZ
a/DT
laudable/JJ
goal/NN
:/:
to/TO
assure/VB
the/DT
integrity/NN
of/IN
the/DT
U.S./NNP
futures/NNS
markets/NNS
./.
However/RB
,/,
as/IN
is/VBZ
common/JJ
with/IN
sweeping/JJ
legislation/NN
,/,
the/DT
proposal/NN
contains/VBZ
many/JJ
provisions/NNS
that/WDT
could/MD
destroy/VB
important/JJ
parts/NNS
of/IN
the/DT
system/NN
it/PRP
sets/VBZ
out/RB
to/TO
preserve/VB
./.
The/DT
complex/JJ
bill/NN
,/,
introduced/VBN
by/IN
Sens./NNP
Patrick/NNP
Leahy/NNP
D./NNP
,/,
Vt./NNP
Richard/NNP
Lugar/NNP
R./NNP
,/,
Ind./NNP
Bob/NNP
Kerrey/NNP
D./NNP
,/,
Neb./NNP
a/DT
wide/JJ
range/NN
of/IN
provisions/NNS
that/WDT
would/MD
affect/VB
the/DT
funding/NN
and/CC
authority/NN
of/IN
the/DT
Commodity/NNP
Futures/NNPS
Trading/NNP
Commission/NNP
and/CC
would/MD
profoundly/RB
change/VB
the/DT
way/NN
the/DT
industry/NN
is/VBZ
regulated/VBN
./.
These/DT
include/VBP
provisions/NNS
relating/VBG
to/TO
the/DT
technology/NN
and/CC
systems/NNS
that/WDT
must/MD
be/VB
employed/VBN
by/IN
exchanges/NNS
,/,
oversight/NN
and/CC
disciplinary/JJ
procedures/NNS
for/IN
exchange/NN
trading/NN
practices/NNS
,/,
the/DT
relationship/NN
between/IN
commodity/NN
brokerage/NN
firms/NNS
and/CC
floor/NN
traders/NNS
,/,
and/CC
exchange/NN
governance/NN
./.
The/DT
bill/NN
also/RB
elevates/VBZ
even/RB
minor/JJ
rule/NN
infractions/NNS
to/TO
felonies/NNS
and/CC
provides/VBZ
for/IN
recovery/NN
of/IN
punitive/JJ
damages/NNS
in/IN
civil/JJ
lawsuits/NNS
and/CC
arbitration/NN
cases/NNS
without/IN
any/DT
showing/NN
of/IN
willful/JJ
misconduct/NN
./.
Many/JJ
aspects/NNS
of/IN
the/DT
bill/NN
are/VBP
salutary/JJ
,/,
providing/VBG
appropriate/JJ
public/JJ
safeguards/NNS
that/WDT
can/MD
and/CC
should/MD
be/VB
instituted/VBN
throughout/IN
the/DT
industry/NN
./.
Indeed/RB
,/,
some/DT
of/IN
the/DT
bill/NN
's/POS
requirements/NNS
,/,
including/VBG
broad/JJ
representation/NN
on/IN
the/DT
exchanges/NNS
'/POS
boards/NNS
of/IN
directors/NNS
and/CC
strong/JJ
measures/NNS
to/TO
prevent/VB
conflicts/NNS
of/IN
interest/NN
,/,
already/RB
have/VBP
been/VBN
put/VBN
in/IN
place/NN
by/IN
the/DT
Coffee/NNP
,/,
Sugar/NNP
&/CC
Cocoa/NNP
Exchange/NNP
and/CC
other/JJ
futures/NNS
exchanges/NNS
./.
Other/JJ
aspects/NNS
of/IN
the/DT
bill/NN
,/,
however/RB
,/,
are/VBP
either/RB
structured/VBN
in/IN
ways/NNS
that/WDT
create/VBP
unnecessary/JJ
burdens/NNS
for/IN
the/DT
industry/NN
or/CC
actually/RB
are/VBP
harmful/JJ
to/TO
the/DT
exchanges/NNS
,/,
the/DT
industry/NN
and/CC
ultimately/RB
the/DT
general/JJ
public/NN
./.
One/CD
of/IN
the/DT
most/RBS
prominent/JJ
features/NNS
is/VBZ
the/DT
requirement/NN
that/IN
in/IN
three/CD
years/NNS
all/DT
exchanges/NNS
have/VBP
in/IN
place/NN
a/DT
system/NN
that/WDT
records/VBZ
all/DT
trades/NNS
by/IN
a/DT
source/NN
independent/JJ
of/IN
the/DT
executing/VBG
broker/NN
./.
The/DT
New/NNP
York/NNP
futures/NNS
exchanges/NNS
have/VBP
been/VBN
working/VBG
together/RB
to/TO
develop/VB
a/DT
trade/NN
recording/VBG
system/NN
much/JJ
like/IN
the/DT
one/NN
called/VBN
for/RB
in/IN
the/DT
bill/NN
./.
We/PRP
would/MD
be/VB
delighted/JJ
to/TO
have/VB
such/JJ
a/DT
system/NN
in/IN
place/NN
today/NN
./.
But/CC
is/VBZ
it/PRP
realistic/JJ
for/IN
Congress/NNP
to/TO
mandate/VB
by/IN
a/DT
rigid/JJ
deadline/NN
a/DT
system/NN
that/WDT
has/VBZ
not/RB
yet/RB
been/VBN
subjected/VBN
to/TO
feasibility/NN
studies/NNS
?/.
What/WP
if/IN
the/DT
system/NN
does/VBZ
n't/RB
work/VB
?/.
What/WP
if/IN
the/DT
only/JJ
system/NN
that/WDT
does/VBZ
work/NN
is/VBZ
so/RB
expensive/JJ
that/IN
,/,
at/IN
best/RBS
,/,
only/RB
the/DT
largest/JJS
exchanges/NNS
can/MD
afford/VB
it/PRP
?/.
Cost/NN
is/VBZ
a/DT
key/JJ
consideration/NN
because/IN
of/IN
the/DT
global/JJ
sweep/NN
of/IN
the/DT
financial/JJ
markets/NNS
./.
The/DT
U.S./NNP
futures/NNS
exchanges/NNS
compete/VBP
world-wide/RB
as/RB
never/RB
before/RB
./.
Today/NN
,/,
trading/NN
in/IN
almost/RB
any/DT
commodity/NN
can/MD
be/VB
diverted/VBN
from/IN
U.S./NNP
markets/NNS
with/IN
just/RB
a/DT
few/JJ
strokes/NNS
of/IN
a/DT
keyboard/NN
./.
All/DT
foreign/JJ
markets/NNS
are/VBP
aggressively/RB
courting/VBG
U.S./NNP
business/NN
./.
In/IN
fact/NN
,/,
several/JJ
London/NNP
markets/NNS
already/RB
offer/VBP
lower/JJR
costs/NNS
for/IN
trading/VBG
in/IN
the/DT
same/JJ
or/CC
very/RB
similar/JJ
contracts/NNS
./.
The/DT
U.S./NNP
exchanges/NNS
need/VBP
both/DT
market/NN
integrity/NN
and/CC
cost-efficiency/NN
;/:
long-term/JJ
growth/NN
depends/VBZ
on/IN
it/PRP
./.
The/DT
Senate/NNP
bill/NN
contains/VBZ
many/JJ
provisions/NNS
that/WDT
will/MD
increase/VB
the/DT
costs/NNS
of/IN
trading/NN
./.
The/DT
most/RBS
arbitrary/JJ
of/IN
these/DT
is/VBZ
the/DT
imposition/NN
of/IN
``/``
service/NN
fees/NNS
,/,
''/''
which/WDT
will/MD
directly/RB
widen/VB
the/DT
cost/NN
spread/NN
between/IN
U.S./NNP
and/CC
foreign/JJ
markets/NNS
./.
Other/JJ
provisions/NNS
have/VBP
a/DT
more/RBR
subtle/JJ
,/,
but/CC
nonetheless/RB
real/JJ
and/CC
detrimental/JJ
effect/NN
on/IN
the/DT
international/JJ
position/NN
of/IN
U.S./NNP
exchanges/NNS
./.
These/DT
include/VBP
the/DT
extension/NN
of/IN
liability/NN
into/IN
areas/NNS
beyond/IN
those/DT
established/VBN
by/IN
judicial/JJ
precedent/NN
and/CC
the/DT
expansion/NN
of/IN
liability/NN
to/TO
include/VB
punitive/JJ
damages/NNS
./.
In/IN
addition/NN
to/TO
increasing/VBG
costs/NNS
as/IN
a/DT
result/NN
of/IN
greater/JJR
financial/JJ
exposure/NN
for/IN
members/NNS
,/,
these/DT
measures/NNS
could/MD
have/VB
other/JJ
,/,
far-reaching/JJ
repercussions/NNS
./.
One/CD
section/NN
of/IN
the/DT
bill/NN
would/MD
make/VB
all/DT
commodity/NN
brokerage/NN
firms/NNS
and/CC
floor/NN
brokers/NNS
liable/JJ
for/IN
damages/NNS
without/IN
willful/JJ
misconduct/NN
./.
Nowhere/RB
in/IN
the/DT
federal/JJ
securities/NNS
law/NN
is/VBZ
simple/JJ
negligence/NN
or/CC
inadvertent/JJ
action/NN
a/DT
source/NN
of/IN
liability/NN
under/IN
similar/JJ
circumstances/NNS
./.
It/PRP
is/VBZ
only/RB
logical/JJ
to/TO
assume/VB
that/IN
the/DT
enactment/NN
of/IN
this/DT
provision/NN
will/MD
lead/VB
to/TO
increased/VBN
litigation/NN
./.
In/IN
an/DT
already/RB
low-profitmargin/NN
business/NN
,/,
commodity/NN
brokerage/NN
firms/NNS
may/MD
well/RB
decide/VB
to/TO
eliminate/VB
the/DT
risk/NN
and/CC
expense/NN
of/IN
dealing/VBG
with/IN
the/DT
retail/JJ
public/NN
,/,
depriving/VBG
the/DT
private/JJ
individual/NN
of/IN
access/NN
to/TO
the/DT
markets/NNS
./.
Another/DT
measure/NN
makes/VBZ
commodity/NN
brokerage/NN
firms/NNS
liable/JJ
for/IN
violations/NNS
committed/VBN
by/IN
independent/JJ
floor/NN
brokers/NNS
who/WP
execute/VBP
trades/NNS
for/IN
them/PRP
./.
This/DT
untried/JJ
concept/NN
would/MD
expose/VB
these/DT
firms/NNS
to/TO
potentially/RB
astronomical/JJ
punitive/JJ
damages/NNS
./.
Faced/VBN
with/IN
the/DT
virtually/RB
impossible/JJ
task/NN
of/IN
supervising/VBG
the/DT
execution/NN
of/IN
each/DT
trade/NN
,/,
many/JJ
commodity/NN
brokerage/NN
firms/NNS
are/VBP
likely/JJ
to/TO
stop/VB
doing/VBG
business/NN
with/IN
independents/NNS
and/CC
instead/RB
hire/VB
their/PRP$
own/JJ
salaried/JJ
floor/NN
brokers/NNS
./.
This/DT
would/MD
force/VB
out/IN
of/IN
business/NN
many/JJ
of/IN
the/DT
individuals/NNS
and/CC
small/JJ
firms/NNS
that/WDT
function/VBP
as/IN
floor/NN
brokers/NNS
./.
A/DT
consequence/NN
of/IN
their/PRP$
departure/NN
could/MD
be/VB
a/DT
serious/JJ
diminution/NN
of/IN
market/NN
liquidity/NN
./.
Finally/RB
,/,
under/IN
the/DT
bill/NN
,/,
a/DT
number/NN
of/IN
legitimate/JJ
,/,
longstanding/JJ
business/NN
practices/NNS
would/MD
be/VB
arbitrarily/RB
banned/VBN
,/,
unless/IN
the/DT
CFTC/NNP
were/VBD
to/TO
take/VB
specific/JJ
and/CC
timely/JJ
action/NN
to/TO
permit/VB
them/PRP
to/TO
continue/VB
./.
In/IN
other/JJ
words/NNS
,/,
regulation/NN
will/MD
occur/VB
through/IN
inaction/NN
and/CC
happenstance/NN
,/,
rather/RB
than/IN
through/IN
a/DT
normal/JJ
deliberative/JJ
procedure/NN
./.
The/DT
affected/JJ
practices/NNS
include/VBP
the/DT
placing/NN
of/IN
oral/JJ
orders/NNS
,/,
which/WDT
is/VBZ
the/DT
way/NN
most/RBS
public/JJ
customer/NN
orders/NNS
are/VBP
placed/VBN
,/,
and/CC
trading/NN
between/IN
affiliated/JJ
brokers/NNS
,/,
even/RB
though/IN
in/IN
some/DT
cases/NNS
trading/VBG
with/IN
affiliates/NNS
may/MD
be/VB
the/DT
only/JJ
way/NN
to/TO
obtain/VB
the/DT
best/JJS
execution/NN
for/IN
a/DT
client/NN
./.
Also/RB
precluded/JJ
would/MD
be/VB
dual/JJ
trading/NN
,/,
whereby/WRB
a/DT
broker/NN
trades/VBZ
for/IN
customers/NNS
as/RB
well/RB
as/IN
his/PRP$
own/JJ
account/NN
,/,
a/DT
practice/NN
that/WDT
provides/VBZ
needed/JJ
liquidity/NN
to/TO
the/DT
markets/NNS
./.
All/DT
U.S./NNP
futures/NNS
exchanges/NNS
agree/VBP
that/IN
these/DT
and/CC
other/JJ
trading/NN
practices/NNS
require/VBP
proper/JJ
regulation/NN
and/CC
supervision/NN
./.
Nonetheless/RB
,/,
each/DT
has/VBZ
too/RB
much/RB
potential/JJ
value/NN
to/TO
the/DT
system/NN
to/TO
be/VB
banned/VBN
by/IN
legislative/JJ
fiat/NN
before/IN
the/DT
CFTC/NNP
carefully/RB
considers/VBZ
all/PDT
the/DT
consequences/NNS
of/IN
a/DT
ban/NN
and/CC
what/WP
the/DT
regulatory/JJ
alternatives/NNS
are/VBP
./.
The/DT
markets/NNS
are/VBP
complex/JJ
,/,
as/IN
is/VBZ
the/DT
environment/NN
in/IN
which/WDT
they/PRP
function/VBP
./.
When/WRB
problems/NNS
surface/VBP
,/,
the/DT
temptation/NN
becomes/VBZ
strong/JJ
to/TO
summarily/RB
overhaul/VB
a/DT
market/NN
system/NN
that/WDT
has/VBZ
served/VBN
for/IN
more/JJR
than/IN
100/CD
years/NNS
./.
That/DT
temptation/NN
must/MD
be/VB
put/VBN
aside/RB
to/TO
permit/VB
careful/JJ
consideration/NN
of/IN
all/PDT
the/DT
implications/NNS
,/,
positive/JJ
and/CC
negative/JJ
,/,
of/IN
the/DT
proposed/VBN
resolutions/NNS
to/TO
those/DT
problems/NNS
,/,
and/CC
to/TO
avoid/VB
creating/VBG
a/DT
marketplace/NN
where/WRB
no/DT
one/CD
trades/VBZ
./.
Mr./NNP
Nastro/NNP
is/VBZ
chairman/NN
of/IN
the/DT
Coffee/NNP
,/,
Sugar/NNP
&/CC
Cocoa/NNP
Exchange/NNP
in/IN
New/NNP
York/NNP
and/CC
director/NN
of/IN
commodity/NN
administration/NN
at/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
./.
Initial/JJ
claims/NNS
for/IN
state/NN
unemployment/NN
benefits/NNS
fell/VBD
to/TO
a/DT
seasonally/RB
adjusted/JJ
332,000/CD
for/IN
the/DT
week/NN
ended/VBN
Oct./NNP
14/CD
from/IN
396,000/CD
the/DT
previous/JJ
week/NN
,/,
the/DT
Labor/NNP
Department/NNP
said/VBD
./.
The/DT
number/NN
of/IN
people/NNS
receiving/VBG
state/NN
benefits/NNS
in/IN
the/DT
week/NN
ended/VBN
Oct./NNP
7/CD
fell/VBD
to/TO
a/DT
seasonally/RB
adjusted/JJ
2,202,000/CD
,/,
or/CC
2.1/CD
%/NN
of/IN
those/DT
covered/JJ
by/IN
unemployment/NN
insurance/NN
,/,
from/IN
2,205,000/CD
the/DT
previous/JJ
week/NN
,/,
when/WRB
the/DT
insured/JJ
unemployment/NN
rate/NN
was/VBD
2.2/CD
%/NN
./.
Counting/VBG
all/DT
state/NN
and/CC
federal/JJ
benefit/NN
programs/NNS
,/,
the/DT
number/NN
of/IN
people/NNS
receiving/VBG
unemployment/NN
benefits/NNS
in/IN
the/DT
week/NN
ended/VBN
Oct./NNP
7/CD
fell/VBD
to/TO
1,784,400/CD
from/IN
1,810,700/CD
a/DT
week/NN
earlier/RB
./.
These/DT
figures/NNS
are/VBP
n't/RB
seasonally/RB
adjusted/JJ
./.
On/IN
the/DT
hungry/JJ
streets/NNS
of/IN
Naguib/NNP
Mahfouz/NNP
's/POS
Cairo/NN
,/,
life/NN
is/VBZ
nasty/JJ
,/,
brutish/JJ
and/CC
wickedly/RB
entertaining/JJ
./.
Zaita/NNP
the/DT
``/``
cripple-maker/NN
''/''
rearranges/VBZ
the/DT
limbs/NNS
of/IN
aspiring/JJ
beggars/NNS
--/:
and/CC
takes/VBZ
a/DT
cut/NN
of/IN
every/DT
cent/NN
they/PRP
cadge/VBP
./.
Hassan/NNP
Kamel/NNP
Ali/NNP
is/VBZ
a/DT
card/NN
shark/NN
and/CC
dope/NN
dealer/NN
who/WP
has/VBZ
a/DT
simple/JJ
creed/NN
:/:
``/``
I/PRP
live/VBP
in/IN
this/DT
world/NN
,/,
assuming/VBG
that/IN
there/EX
is/VBZ
no/DT
morality/NN
,/,
God/NNP
or/CC
police/NNS
./.
''/''
For/IN
the/DT
killer/NN
and/CC
thief/NN
,/,
Said/NNP
Mahran/NNP
,/,
fame/NN
flows/VBZ
from/IN
the/DT
barrel/NN
of/IN
a/DT
gun/NN
./.
``/``
One/CD
man/NN
said/VBD
you/PRP
act/VBP
as/IN
a/DT
stimulant/NN
,/,
''/''
a/DT
prostitute/NN
tells/VBZ
him/PRP
,/,
``/``
a/DT
diversion/NN
to/TO
relieve/VB
people/NNS
's/POS
boredom/NN
./.
''/''
Mr./NNP
Mahfouz/NNP
's/POS
Cairo/NNP
also/RB
has/VBZ
Sufi/JJ
sheiks/NNS
and/CC
saintly/JJ
wives/NNS
who/WP
look/VBP
to/TO
God/NNP
,/,
not/RB
crime/NN
,/,
for/IN
their/PRP$
salvation/NN
./.
But/CC
it/PRP
is/VBZ
his/PRP$
portrait/NN
of/IN
Cairo/NNP
low-life/JJ
--/:
of/IN
charlatans/NNS
and/CC
opium/NN
addicts/NNS
,/,
of/IN
streets/NNS
filled/VBN
with/IN
``/``
dust/NN
,/,
vegetable/NN
litter/NN
,/,
and/CC
animal/NN
dung/NN
''/''
--/:
that/IN
made/VBD
his/PRP$
reputation/NN
,/,
and/CC
won/VBD
him/PRP
the/DT
Nobel/NNP
Prize/NNP
in/IN
1988/CD
./.
Three/CD
novels/NNS
,/,
``/``
The/DT
Beginning/NN
and/CC
the/DT
End/NN
''/''
(/(
412/CD
pages/NNS
,/,
$/$
19.95/CD
The/DT
Thief/NN
and/CC
the/DT
Dogs/NNS
''/''
(/(
158/CD
pages/NNS
,/,
$/$
16.95/CD
Wedding/NN
Song/NN
''/''
(/(
174/CD
pages/NNS
,/,
$/$
16.95/CD
Doubleday/NNP
offer/VBP
an/DT
uneven/JJ
sample/NN
of/IN
the/DT
77-year-old/JJ
Mr./NNP
Mahfouz/NNP
's/POS
talent/NN
./.
But/CC
they/PRP
do/VBP
show/VB
the/DT
range/NN
of/IN
a/DT
restless/JJ
intellect/NN
whose/WP$
30-odd/JJ
novels/NNS
span/VBP
five/CD
decades/NNS
and/CC
include/VBP
work/NN
of/IN
social/JJ
realism/NN
,/,
protest/NN
and/CC
allegory/NN
./.
They/PRP
also/RB
chart/VBP
the/DT
evolution/NN
of/IN
a/DT
city/NN
that/WDT
has/VBZ
grown/VBN
tenfold/RB
in/IN
the/DT
author/NN
's/POS
lifetime/NN
,/,
from/IN
a/DT
colonial/NN
outpost/NN
of/IN
fez-wearing/JJ
pashas/NNS
to/TO
a/DT
Third/NNP
World/NNP
slum/NN
choking/VBG
on/IN
its/PRP$
own/JJ
refuse/NN
./.
``/``
Soon/RB
it/PRP
'll/MD
be/VB
so/RB
crowded/JJ
,/,
''/''
a/DT
narrator/NN
complains/VBZ
,/,
``/``
that/IN
people/NNS
will/MD
start/VB
eating/VBG
each/DT
other/JJ
./.
''/''
``/``
The/DT
Beginning/NN
and/CC
the/DT
End/NN
,/,
''/''
easily/RB
the/DT
best/JJS
of/IN
the/DT
three/CD
,/,
belongs/VBZ
to/TO
Mr./NNP
Mahfouz/NNP
's/POS
``/``
realistic/JJ
''/''
period/NN
and/CC
it/PRP
is/VBZ
the/DT
one/NN
for/IN
which/WDT
he/PRP
is/VBZ
most/RBS
renowned/JJ
./.
Published/VBN
in/IN
1949/CD
,/,
it/PRP
follows/VBZ
the/DT
decline/NN
of/IN
a/DT
Cairo/NNP
family/NN
with/IN
the/DT
saga-like/JJ
sweep/NN
and/CC
rich/JJ
detail/NN
that/IN
critics/NNS
often/RB
compare/VBP
to/TO
Dickens/NNP
,/,
Balzac/NNP
and/CC
Galsworthy/NNP
./.
A/DT
minor/JJ
bureaucrat/NN
dies/VBZ
suddenly/RB
,/,
dooming/VBG
his/PRP$
family/NN
to/TO
poverty/NN
and/CC
eventual/JJ
disgrace/NN
./.
His/PRP$
daughter/NN
turns/VBZ
to/TO
dressmaking/NN
,/,
then/RB
to/TO
peddling/VBG
herself/PRP
for/IN
a/DT
few/JJ
piasters/NNS
./.
One/CD
son/NN
sacrifices/VBZ
his/PRP$
own/JJ
career/NN
so/IN
that/IN
his/PRP$
avaricious/JJ
brother/NN
can/MD
succeed/VB
,/,
while/IN
another/DT
helps/VBZ
support/VB
the/DT
family/NN
with/IN
money/NN
siphoned/VBN
from/IN
crime/NN
./.
The/DT
real/JJ
tragedy/NN
,/,
though/RB
,/,
lies/VBZ
not/RB
in/IN
the/DT
family/NN
's/POS
circumstances/NNS
but/CC
in/IN
its/PRP$
concern/NN
for/IN
appearances/NNS
./.
Mourning/VBG
for/IN
the/DT
father/NN
is/VBZ
overshadowed/VBN
by/IN
the/DT
shame/NN
of/IN
burying/VBG
him/PRP
in/IN
a/DT
pauper/NN
's/POS
grave/NN
./.
The/DT
family/NN
moves/VBZ
to/TO
another/DT
house/NN
at/IN
night/NN
to/TO
conceal/VB
shabby/JJ
belongings/NNS
from/IN
neighbors/NNS
./.
And/CC
the/DT
successful/JJ
son/NN
wishes/VBZ
his/PRP$
embarrassing/JJ
siblings/NNS
dead/JJ
./.
As/IN
a/DT
critique/NN
of/IN
middle-class/NN
mores/NNS
,/,
the/DT
story/NN
is/VBZ
heavy-handed/JJ
./.
But/CC
its/PRP$
unsentimental/JJ
sketches/NNS
of/IN
Cairo/NNP
life/NN
are/VBP
vintage/JJ
Mahfouz/NNP
./.
We/PRP
see/VBP
,/,
smell/VBP
and/CC
hear/VBP
slums/NNS
filled/VBN
with/IN
``/``
the/DT
echoes/NNS
of/IN
hawkers/NNS
advertising/VBG
their/PRP$
wares/NNS
interspersed/VBN
with/IN
abusive/JJ
language/NN
,/,
rattling/VBG
coughs/NNS
and/CC
the/DT
sound/NN
of/IN
people/NNS
gathering/VBG
spittle/NN
in/IN
their/PRP$
throats/NNS
and/CC
spewing/VBG
into/IN
the/DT
street/NN
./.
''/''
And/CC
we/PRP
meet/VBP
engaging/JJ
crooks/NNS
,/,
such/JJ
as/IN
Hassan/NNP
``/``
the/DT
Head/NNP
,/,
''/''
famed/VBN
for/IN
his/PRP$
head-butting/JJ
fights/NNS
,/,
his/PRP$
whoring/NN
and/CC
his/PRP$
hashish/NN
./.
``/``
`/``
God/NNP
has/VBZ
not/RB
yet/RB
ordained/VBN
that/IN
I/PRP
should/MD
have/VB
earnings/NNS
,/,
'/''
he/PRP
tells/VBZ
his/PRP$
worried/JJ
mother/NN
./.
''/''
Hassan/NNP
comes/VBZ
to/TO
a/DT
bad/JJ
end/NN
,/,
but/CC
so/RB
does/VBZ
almost/RB
everyone/NN
else/JJ
in/IN
the/DT
book/NN
./.
If/IN
the/DT
setting/NN
is/VBZ
exotic/JJ
,/,
the/DT
prose/NN
is/VBZ
closer/JJR
to/TO
Balzac/NNP
's/POS
``/``
Pere/NNP
Goriot/NNP
''/''
than/IN
it/PRP
is/VBZ
to/TO
``/``
Arabian/NNP
Nights/NNPS
./.
''/''
Mr./NNP
Mahfouz/NNP
began/VBD
writing/VBG
when/WRB
there/EX
was/VBD
no/DT
novelistic/JJ
tradition/NN
in/IN
Arabic/NNP
,/,
and/CC
he/PRP
modeled/VBD
his/PRP$
work/NN
on/IN
Western/JJ
classics/NNS
./.
In/IN
one/CD
sense/NN
,/,
this/DT
limits/VBZ
him/PRP
;/:
unlike/IN
a/DT
writer/NN
such/JJ
as/IN
Gabriel/NNP
Garcia/NNP
Marquez/NNP
,/,
who/WP
has/VBZ
a/DT
distinctive/JJ
Latin/JJ
voice/NN
,/,
Mr./NNP
Mahfouz/NNP
's/POS
style/NN
offers/VBZ
little/RB
that/WDT
can/MD
be/VB
labeled/VBN
``/``
Egyptian/JJ
./.
''/''
But/CC
the/DT
familiarity/NN
of/IN
his/PRP$
style/NN
also/RB
makes/VBZ
his/PRP$
work/NN
accessible/JJ
,/,
as/IN
the/DT
streets/NNS
of/IN
Cairo/NNP
come/VBP
alive/JJ
for/IN
the/DT
Western/JJ
reader/NN
as/RB
vividly/RB
as/IN
Dickens/NNP
's/POS
London/NNP
or/CC
Dostoevski/NNP
's/POS
St./NNP
Petersburg/NNP
./.
``/``
The/DT
Thief/NN
and/CC
the/DT
Dogs/NNS
,/,
''/''
written/VBN
in/IN
1961/CD
,/,
is/VBZ
a/DT
taut/JJ
,/,
psychological/JJ
drama/NN
,/,
reminiscent/JJ
of/IN
``/``
Crime/NN
and/CC
Punishment/NN
./.
''/''
Its/PRP$
antihero/NN
,/,
Said/NNP
Mahran/NNP
,/,
is/VBZ
an/DT
Egyptian/JJ
Raskolnikov/NNP
who/WP
seeks/VBZ
nobility/NN
in/IN
robbing/VBG
and/CC
killing/VBG
./.
``/``
I/PRP
am/VBP
the/DT
hope/NN
and/CC
the/DT
dream/NN
,/,
the/DT
redemption/NN
of/IN
cowards/NNS
,/,
''/''
he/PRP
says/VBZ
in/IN
one/CD
of/IN
many/JJ
interior/JJ
monologues/NNS
./.
Later/RB
,/,
he/PRP
recalls/VBZ
the/DT
words/NNS
of/IN
his/PRP$
Marxist/JJ
mentor/NN
:/:
``/``
The/DT
people/NNS
!/.
Theft/NN
!/.
The/DT
holy/JJ
fire/NN
!/.
''/''
Said/NNP
's/POS
story/NN
reflects/VBZ
the/DT
souring/NN
of/IN
socialism/NN
under/IN
Nasser/NNP
,/,
whose/WP$
dictatorial/JJ
rule/NN
replaced/VBD
the/DT
monarchy/NN
overthrown/VBN
in/IN
1952/CD
./.
By/IN
1961/CD
,/,
Mr./NNP
Mahfouz/NNP
's/POS
idealism/NN
had/VBD
vanished/VBN
or/CC
become/VBN
twisted/JJ
,/,
as/IN
it/PRP
has/VBZ
in/IN
Said/NNP
./.
His/PRP$
giddy/JJ
dream/NN
of/IN
redeeming/VBG
a/DT
life/NN
of/IN
``/``
badly/RB
aimed/VBN
bullets/NNS
''/''
by/IN
punishing/VBG
the/DT
``/``
real/JJ
robbers/NNS
''/''
--/:
the/DT
rich/JJ
``/``
dogs/NNS
''/''
who/WP
prey/VBP
on/IN
the/DT
poor/JJ
--/:
leads/VBZ
only/RB
to/TO
the/DT
death/NN
of/IN
innocents/NNS
,/,
and/CC
eventually/RB
to/TO
his/PRP$
own/JJ
./.
Cairo/NNP
's/POS
spirited/JJ
squalor/NN
also/RB
has/VBZ
gone/VBN
gray/JJ
./.
Here/RB
,/,
the/DT
city/NN
is/VBZ
dark/JJ
and/CC
laden/JJ
with/IN
symbolism/NN
:/:
Said/NNP
has/VBZ
left/VBN
his/PRP$
jail/NN
cell/NN
only/RB
to/TO
enter/VB
the/DT
larger/JJR
prison/NN
of/IN
Cairo/NNP
society/NN
./.
While/IN
the/DT
theme/NN
is/VBZ
compelling/JJ
,/,
the/DT
plot/NN
and/CC
characters/NNS
are/VBP
not/RB
./.
We/PRP
never/RB
care/VBP
about/IN
Said/NNP
or/CC
the/DT
``/``
hypocrites/NNS
''/''
he/PRP
hunts/VBZ
./.
``/``
The/DT
Thief/NN
and/CC
the/DT
Dogs/NNS
''/''
is/VBZ
a/DT
pioneering/JJ
work/NN
,/,
the/DT
first/JJ
stream-of-consciousness/NN
novel/NN
in/IN
Arabic/NNP
,/,
but/CC
it/PRP
is/VBZ
likely/JJ
to/TO
disappoint/VB
Western/JJ
readers/NNS
./.
The/DT
1981/CD
novel/NN
``/``
Wedding/NN
Song/NN
''/''
also/RB
is/VBZ
experimental/JJ
,/,
and/CC
another/DT
badly/RB
aimed/VBN
bullet/NN
./.
The/DT
story/NN
of/IN
a/DT
playwright/NN
's/POS
stage/NN
debut/NN
unfolds/VBZ
in/IN
first-person/NN
monologues/NNS
,/,
in/IN
the/DT
manner/NN
of/IN
Faulkner/NNP
's/POS
``/``
The/DT
Sound/NN
and/CC
the/DT
Fury/NN
./.
''/''
But/CC
the/DT
device/NN
obscures/VBZ
more/JJR
than/IN
it/PRP
illuminates/VBZ
./.
Buried/VBN
in/IN
the/DT
work/NN
is/VBZ
a/DT
meditation/NN
on/IN
the/DT
morality/NN
of/IN
art/NN
,/,
and/CC
on/IN
the/DT
struggle/NN
for/IN
integrity/NN
in/IN
an/DT
unfair/JJ
world/NN
./.
But/CC
again/RB
,/,
the/DT
themes/NNS
get/VBP
tangled/VBN
in/IN
Mr./NNP
Mahfouz/NNP
's/POS
elliptical/JJ
storytelling/NN
./.
The/DT
indirectness/NN
of/IN
his/PRP$
later/JJ
work/NN
reflects/VBZ
both/DT
an/DT
appetite/NN
for/IN
new/JJ
genres/NNS
and/CC
the/DT
hazards/NNS
of/IN
art/NN
in/IN
the/DT
Arab/JJ
world/NN
./.
Mr./NNP
Mahfouz/NNP
has/VBZ
been/VBN
pilloried/VBN
and/CC
censored/VBN
for/IN
questioning/VBG
Islam/NNP
and/CC
advocating/VBG
peace/NN
with/IN
Israel/NNP
./.
Veiling/VBG
his/PRP$
message/NN
has/VBZ
helped/VBN
him/PRP
endure/VB
./.
Art/NN
,/,
says/VBZ
the/DT
playwright/NN
in/IN
``/``
Wedding/NN
Song/NN
,/,
''/''
is/VBZ
``/``
the/DT
surrogate/NN
for/IN
the/DT
action/NN
that/IN
an/DT
idealist/NN
like/IN
me/PRP
is/VBZ
unable/JJ
to/TO
take/VB
./.
''/''
``/``
Wedding/NN
Song/NN
''/''
gives/VBZ
glimpses/NNS
of/IN
a/DT
Cairo/NNP
that/WDT
has/VBZ
become/VBN
so/RB
much/RB
harsher/JJR
since/IN
his/PRP$
youth/NN
,/,
when/WRB
,/,
as/IN
he/PRP
once/RB
said/VBD
,/,
``/``
the/DT
poorest/JJS
person/NN
was/VBD
able/JJ
to/TO
find/VB
his/PRP$
daily/JJ
bread/NN
and/CC
without/IN
great/JJ
difficulty/NN
./.
''/''
The/DT
clutter/NN
of/IN
the/DT
1940s/NNS
remains/NNS
,/,
but/CC
its/PRP$
color/NN
has/VBZ
drained/VBN
away/RB
,/,
and/CC
the/DT
will/NN
to/TO
overcome/VB
has/VBZ
been/VBN
defeated/VBN
./.
Cars/NNS
ca/MD
n't/RB
move/VB
because/RB
of/IN
overflowing/VBG
sewers/NNS
./.
Characters/NNS
complain/VBP
ceaselessly/RB
about/IN
food/NN
queues/NNS
,/,
prices/NNS
and/CC
corruption/NN
./.
And/CC
the/DT
ubiquitous/JJ
opium/NN
addict/NN
is/VBZ
now/RB
a/DT
cynical/JJ
and/CC
selfish/JJ
man/NN
who/WP
gripes/VBZ
:/:
``/``
Only/JJ
government/NN
ministers/NNS
can/MD
afford/VB
it/PRP
these/DT
days/NNS
!/.
''/''
Having/VBG
lost/VBN
their/PRP$
faith/NN
in/IN
God/NNP
,/,
in/IN
social/JJ
reform/NN
and/CC
in/IN
opium/NN
,/,
Cairenes/NNPS
are/VBP
left/VBN
with/IN
nothing/NN
but/CC
their/PRP$
sense/NN
of/IN
humor/NN
./.
Mr./NNP
Horwitz/NNP
is/VBZ
a/DT
Journal/NNP
staff/NN
reporter/NN
covering/VBG
the/DT
Middle/NNP
East/NNP
./.
Norwood/NNP
Partners/NNPS
Limited/NNP
Partnership/NNP
of/IN
Boston/NNP
said/VBD
it/PRP
may/MD
make/VB
a/DT
tender/NN
offer/NN
for/IN
some/DT
or/CC
all/DT
of/IN
Phoenix/NNP
Technologies/NNPS
Ltd./NNP
's/POS
common/JJ
shares/NNS
./.
Norwood/NNP
,/,
Mass.-based/JJ
Phoenix/NNP
,/,
a/DT
once-high-flying/JJ
maker/NN
of/IN
software/NN
for/IN
personal/JJ
computers/NNS
,/,
has/VBZ
had/VBN
substantial/JJ
losses/NNS
in/IN
the/DT
past/JJ
two/CD
quarters/NNS
./.
Its/PRP$
stock/NN
,/,
which/WDT
was/VBD
as/RB
high/JJ
as/IN
$/$
18.75/CD
a/DT
share/NN
,/,
has/VBZ
been/VBN
trading/VBG
under/IN
$/$
4/CD
a/DT
share/NN
recently/RB
./.
Yesterday/NN
it/PRP
closed/VBD
at/IN
$/$
4.375/CD
a/DT
share/NN
,/,
up/RB
$/$
1.125/CD
,/,
in/IN
national/JJ
over-the-counter/JJ
trading/NN
./.
In/IN
a/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
filing/NN
,/,
Norwood/NNP
said/VBD
it/PRP
's/VBZ
part/NN
of/IN
a/DT
group/NN
that/WDT
holds/VBZ
525,546/CD
Phoenix/NNP
Technologies/NNPS
common/JJ
shares/NNS
,/,
or/CC
a/DT
5.3/CD
%/NN
stake/NN
./.
Norwood/NNP
has/VBZ
made/VBN
``/``
no/DT
detailed/JJ
plans/NNS
,/,
''/''
but/CC
it/PRP
has/VBZ
engaged/VBN
in/IN
talks/NNS
with/IN
other/JJ
shareholders/NNS
,/,
the/DT
filing/NN
said/VBD
./.
Phoenix/NNP
declined/VBD
to/TO
comment/VB
./.
Norwood/NNP
is/VBZ
controlled/VBN
by/IN
Daniel/NNP
L./NNP
Barnett/NNP
and/CC
Paul/NNP
A./NN
Reese/NNP
,/,
both/DT
officers/NNS
of/IN
Boston-based/JJ
Oasis/NNP
Capital/NNP
Management/NNP
Inc./NNP
,/,
a/DT
small/JJ
Boston/NNP
money/NN
management/NN
firm/NN
./.
Also/RB
involved/JJ
in/IN
the/DT
group/NN
is/VBZ
Robert/NNP
F./NNP
Angelo/NNP
,/,
formerly/RB
Phoenix/NNP
's/POS
senior/JJ
vice/NN
president/NN
,/,
field/NN
operations/NNS
,/,
who/WP
left/VBD
Phoenix/NNP
at/IN
the/DT
beginning/NN
of/IN
October/NNP
./.
Mr./NNP
Angelo/NNP
was/VBD
described/VBN
in/IN
the/DT
filing/NN
as/IN
a/DT
consultant/NN
to/TO
Oasis/NNP
./.
Weirton/NNP
Steel/NNP
Corp./NNP
said/VBD
it/PRP
reached/VBD
a/DT
tentative/JJ
agreement/NN
on/IN
a/DT
48-month/JJ
labor/NN
contract/NN
with/IN
the/DT
Independent/NNP
Steelworkers/NNPS
Union/NNP
covering/VBG
production/NN
and/CC
maintenance/NN
employees/NNS
./.
The/DT
agreement/NN
,/,
subject/NN
to/TO
approval/NN
of/IN
union/NN
members/NNS
,/,
would/MD
cover/VB
about/IN
6,000/CD
workers/NNS
./.
The/DT
tentative/JJ
agreement/NN
provides/VBZ
for/IN
wage/NN
increases/NNS
of/IN
85/CD
cents/NNS
an/DT
hour/NN
retroactive/JJ
to/TO
Sept./NNP
25/CD
,/,
1989/CD
,/,
and/CC
for/IN
increases/NNS
of/IN
19/CD
cents/NNS
,/,
70/CD
cents/NNS
and/CC
35/CD
cents/NNS
an/DT
hour/NN
effective/JJ
Jan./NNP
1/CD
,/,
1991/CD
,/,
1992/CD
and/CC
1993/CD
,/,
respectively/RB
./.
It/PRP
also/RB
provides/VBZ
for/IN
benefit/NN
adjustments/NNS
,/,
including/VBG
a/DT
partial/JJ
restoration/NN
of/IN
vacations/NNS
and/CC
holidays/NNS
,/,
as/RB
well/RB
as/IN
work-rule/NN
changes/NNS
to/TO
increase/VB
productivity/NN
./.
Ground/NN
zero/CD
of/IN
the/DT
HUD/NNP
scandal/NN
is/VBZ
the/DT
Secretary/NNP
's/POS
``/``
discretionary/JJ
fund/NN
,/,
''/''
a/DT
honey/NN
pot/NN
used/VBN
to/TO
fund/VB
projects/NNS
that/WDT
were/VBD
n't/RB
approved/VBN
through/IN
normal/JJ
HUD/NNP
channels/NNS
./.
Jack/NNP
Kemp/NNP
wants/VBZ
to/TO
abolish/VB
it/PRP
./.
Instead/RB
,/,
Congress/NNP
's/POS
idea/NN
of/IN
reform/NN
is/VBZ
to/TO
increase/VB
this/DT
slush/NN
fund/NN
by/IN
$/$
28.4/CD
million/CD
./.
And/CC
transfer/VB
control/NN
of/IN
much/JJ
of/IN
it/PRP
to/TO
Capitol/NNP
Hill/NNP
./.
The/DT
HUD/NNP
scandals/NNS
will/MD
simply/RB
continue/VB
,/,
but/CC
under/IN
new/JJ
mismanagement/NN
./.
After/IN
one/CD
of/IN
the/DT
most/RBS
amazing/JJ
debates/NNS
we/PRP
've/VBP
ever/RB
seen/VBN
on/IN
the/DT
cable/NN
channel/NN
C-SPAN/NNP
,/,
the/DT
House/NNP
voted/VBD
250/CD
to/TO
170/CD
on/IN
Wednesday/NNP
to/TO
order/VB
$/$
28.4/CD
million/CD
in/IN
spending/NN
for/IN
a/DT
New/NNP
Jersey/NNP
arts/NNS
center/NN
,/,
a/DT
Michigan/NNP
library/NN
and/CC
38/CD
other/JJ
pet/JJ
projects/NNS
out/IN
of/IN
the/DT
same/JJ
discretionary/JJ
fund/NN
that/WDT
was/VBD
supposed/VBN
to/TO
have/VB
been/VBN
so/RB
abused/JJ
during/IN
Sam/NNP
Pierce/NNP
's/POS
tenure/NN
./.
HUD/NNP
has/VBZ
no/DT
paper/NN
work/NN
whatsoever/RB
on/IN
30/CD
of/IN
the/DT
projects/NNS
,/,
none/NN
of/IN
the/DT
others/NNS
has/VBZ
been/VBN
approved/VBN
and/CC
not/RB
a/DT
single/JJ
congressional/JJ
hearing/NN
has/VBZ
been/VBN
held/VBN
on/IN
any/DT
of/IN
them/PRP
./.
However/RB
,/,
four/CD
are/VBP
in/IN
the/DT
Michigan/NNP
district/NN
of/IN
Rep./NNP
Bob/NNP
Traxler/NNP
,/,
the/DT
chairman/NN
of/IN
the/DT
House/NNP
subcommittee/NN
that/WDT
writes/VBZ
the/DT
HUD/NNP
spending/NN
bill/NN
./.
Of/IN
course/NN
,/,
this/DT
kind/NN
of/IN
blatant/JJ
congressional/JJ
pork-barreling/NN
is/VBZ
called/VBN
``/``
constituent/JJ
service/NN
''/''
by/IN
Members/NNS
,/,
while/IN
the/DT
same/JJ
kind/NN
of/IN
noncompetitive/JJ
favoritism/NN
at/IN
HUD/NNP
is/VBZ
labeled/VBN
``/``
influence/NN
peddling/NN
./.
''/''
Unlike/IN
those/DT
awful/JJ
Republican/JJ
consultants/NNS
,/,
Members/NNP
do/VBP
n't/RB
profit/VB
directly/RB
from/IN
HUD/NNP
projects/NNS
./.
They/PRP
merely/RB
collect/VBP
campaign/NN
contributions/NNS
from/IN
developers/NNS
that/WDT
help/VBP
keep/VB
them/PRP
in/IN
office/NN
./.
The/DT
40/CD
pet/NN
projects/NNS
were/VBD
discovered/VBN
buried/VBN
in/IN
the/DT
appropriations/NNS
bill/NN
for/IN
HUD/NNP
and/CC
some/DT
other/JJ
agencies/NNS
after/IN
it/PRP
returned/VBD
from/IN
a/DT
conference/NN
committee/NN
that/WDT
was/VBD
called/VBN
to/TO
resolve/VB
differences/NNS
between/IN
the/DT
House/NNP
and/CC
Senate/NNP
versions/NNS
./.
Conference/NN
committees/NNS
are/VBP
breeding/VBG
grounds/NNS
for/IN
mischief/NN
./.
They/PRP
are/VBP
often/RB
closed/VBN
to/TO
the/DT
public/NN
and/CC
no/DT
minutes/NNS
are/VBP
taken/VBN
./.
Members/NNS
find/VBP
it/PRP
easy/JJ
to/TO
doctor/VB
legislation/NN
by/IN
slipping/VBG
in/IN
special/JJ
provisions/NNS
that/WDT
could/MD
never/RB
survive/VB
in/IN
the/DT
cold/JJ
light/NN
of/IN
day/NN
./.
In/IN
this/DT
case/NN
,/,
the/DT
Members/NNS
outdid/VBD
themselves/PRP
./.
They/PRP
transferred/VBD
some/DT
$/$
28/CD
million/CD
from/IN
the/DT
Community/NNP
Development/NNP
Block/NNP
Grant/NNP
program/NN
designated/VBN
largely/RB
for/IN
low/JJ
moderate-income/JJ
projects/NNS
and/CC
funneled/VBD
it/PRP
into/IN
such/JJ
items/NNS
as/IN
:/:
--/:
$/$
1.2/CD
million/CD
for/IN
a/DT
performing-arts/NNS
center/NN
in/IN
Newark/NNP
,/,
--/:
$/$
1.3/CD
million/CD
for/IN
``/``
job/NN
retention/NN
''/''
in/IN
Hawaiian/JJ
sugar/NN
mills/NNS
./.
--/:
$/$
400,000/CD
for/IN
a/DT
collapsing/VBG
utility/NN
tunnel/NN
in/IN
Salisbury/NNP
,/,
--/:
$/$
500,000/CD
for/IN
``/``
equipment/NN
and/CC
landscaping/NN
to/TO
deter/VB
crime/NN
and/CC
aid/VB
police/NN
surveillance/NN
''/''
at/IN
a/DT
Michigan/NNP
park/NN
./.
--/:
$/$
450,000/CD
for/IN
``/``
integrated/JJ
urban/JJ
data/NNS
based/VBN
in/IN
seven/CD
cities/NNS
./.
''/''
No/DT
other/JJ
details/NNS
./.
--/:
$/$
390,000/CD
for/IN
a/DT
library/NN
and/CC
recreation/NN
center/NN
at/IN
Mackinac/NNP
Island/NNP
,/,
Mich/NNP
./.
Rep./NNP
Traxler/NNP
recently/RB
purchased/VBD
an/DT
unimproved/JJ
building/NN
lot/NN
on/IN
the/DT
island/NN
./.
This/DT
is/VBZ
slightly/RB
adapted/VBN
from/IN
remarks/NNS
Oct./NNP
7/CD
by/IN
former/JJ
Secretary/NNP
of/IN
State/NNP
George/NNP
P./NNP
Shultz/NNP
to/TO
an/DT
alumni/NNS
gathering/NN
at/IN
the/DT
Stanford/NNP
Business/NNP
School/NNP
,/,
where/WRB
he/PRP
has/VBZ
returned/VBN
to/TO
the/DT
faculty/NN
:/:
I/PRP
was/VBD
struck/VBN
a/DT
couple/NN
of/IN
years/NNS
ago/RB
by/IN
the/DT
drug-interdiction/NN
effort/NN
in/IN
the/DT
Bahamas/NNPS
./.
We/PRP
had/VBD
intercepted/VBN
during/IN
the/DT
year/NN
an/DT
estimated/VBN
$/$
5/CD
billion/CD
street/NN
value/NN
of/IN
cocaine/NN
./.
I/PRP
do/VBP
n't/RB
know/VB
how/WRB
much/JJ
got/VBD
through/RB
./.
Nobody/NN
has/VBZ
any/DT
credible/JJ
estimate/NN
./.
The/DT
GNP/NNP
of/IN
the/DT
Bahamas/NNPS
is/VBZ
probably/RB
somewhere/RB
between/IN
one/CD
and/CC
two/CD
billion/CD
dollars/NNS
./.
So/RB
you/PRP
get/VBP
an/DT
idea/NN
of/IN
the/DT
leverage/NN
there/RB
and/CC
elsewhere/RB
that/IN
our/PRP$
market/NN
for/IN
drugs/NNS
has/VBZ
brought/VBN
about/RP
./.
I/PRP
welcome/VBP
the/DT
emphasis/NN
that/WDT
is/VBZ
now/RB
being/VBG
put/VBN
on/IN
the/DT
drug/NN
problem/NN
./.
The/DT
efforts/NNS
to/TO
get/VB
to/TO
the/DT
people/NNS
who/WP
are/VBP
addicted/VBN
,/,
try/VB
to/TO
rehabilitate/VB
them/PRP
;/:
if/IN
they/PRP
can/MD
not/RB
be/VB
rehabilitated/VBN
,/,
at/IN
least/RBS
to/TO
contain/VB
them/PRP
;/:
to/TO
educate/VB
people/NNS
,/,
to/TO
strongly/RB
discourage/VB
use/NN
of/IN
drugs/NNS
by/IN
people/NNS
who/WP
are/VBP
casual/JJ
users/NNS
and/CC
first/JJ
users/NNS
,/,
to/TO
stop/VB
this/DT
process/NN
among/IN
the/DT
young/JJ
--/:
all/DT
of/IN
these/DT
things/NNS
I/PRP
think/VBP
are/VBP
extremely/RB
important/JJ
./.
But/CC
,/,
I/PRP
have/VBP
to/TO
tell/VB
you/PRP
that/IN
it/PRP
seems/VBZ
to/TO
me/PRP
that/IN
the/DT
conceptual/JJ
base/NN
of/IN
the/DT
current/JJ
program/NN
is/VBZ
flawed/VBN
and/CC
the/DT
program/NN
is/VBZ
not/RB
likely/JJ
to/TO
work/VB
./.
The/DT
conceptual/JJ
base/NN
--/:
a/DT
criminal-justice/NN
approach/NN
--/:
is/VBZ
the/DT
same/JJ
that/IN
I/PRP
have/VBP
worked/VBN
through/IN
before/RB
,/,
in/IN
the/DT
Nixon/NNP
administration/NN
when/WRB
I/PRP
was/VBD
budget/NN
director/NN
and/CC
secretary/NN
of/IN
the/DT
treasury/NN
with/IN
jurisdiction/NN
over/IN
the/DT
Customs/NNS
./.
We/PRP
designed/VBD
a/DT
comprehensive/JJ
program/NN
,/,
and/CC
we/PRP
worked/VBD
hard/RB
on/IN
it/PRP
./.
In/IN
the/DT
Reagan/NNP
administration/NN
we/PRP
designed/VBD
a/DT
comprehensive/JJ
program/NN
;/:
we/PRP
worked/VBD
very/RB
hard/RB
on/IN
it/PRP
./.
Our/PRP$
international/JJ
efforts/NNS
were/VBD
far/RB
greater/JJR
than/IN
ever/RB
before/RB
./.
You/PRP
're/VBP
looking/VBG
at/IN
a/DT
guy/NN
whose/WP$
motorcade/NN
was/VBD
attacked/VBN
in/IN
Bolivia/NNP
by/IN
the/DT
drug/NN
terrorists/NNS
,/,
so/IN
I/PRP
'm/VBP
personally/RB
a/DT
veteran/NN
of/IN
this/DT
war/NN
./.
What/WP
we/PRP
have/VBP
before/IN
us/PRP
now/RB
is/VBZ
essentially/RB
the/DT
same/JJ
program/NN
but/CC
with/IN
more/JJR
resources/NNS
plowed/VBN
into/IN
all/DT
of/IN
the/DT
efforts/NNS
to/TO
enforce/VB
and/CC
control/VB
./.
These/DT
efforts/NNS
wind/VBP
up/RB
creating/VBG
a/DT
market/NN
where/WRB
the/DT
price/NN
vastly/RB
exceeds/VBZ
the/DT
cost/NN
./.
With/IN
these/DT
incentives/NNS
,/,
demand/NN
creates/VBZ
its/PRP$
own/JJ
supply/NN
and/CC
a/DT
criminal/JJ
network/NN
along/IN
with/IN
it/PRP
./.
It/PRP
seems/VBZ
to/TO
me/PRP
we/PRP
're/VBP
not/RB
really/RB
going/VBG
to/TO
get/VB
anywhere/RB
until/IN
we/PRP
can/MD
take/VB
the/DT
criminality/NN
out/IN
of/IN
the/DT
drug/NN
business/NN
and/CC
the/DT
incentives/NNS
for/IN
criminality/NN
out/IN
of/IN
it/PRP
./.
Frankly/RB
,/,
the/DT
only/JJ
way/NN
I/PRP
can/MD
think/VB
of/IN
to/TO
accomplish/VB
this/DT
is/VBZ
to/TO
make/VB
it/PRP
possible/JJ
for/IN
addicts/NNS
to/TO
buy/VB
drugs/NNS
at/IN
some/DT
regulated/JJ
place/NN
at/IN
a/DT
price/NN
that/WDT
approximates/VBZ
their/PRP$
cost/NN
./.
When/WRB
you/PRP
do/VBP
that/IN
you/PRP
wipe/VBP
out/RP
the/DT
criminal/JJ
incentives/NNS
,/,
including/VBG
,/,
I/PRP
might/MD
say/VB
,/,
the/DT
incentive/NN
that/IN
the/DT
drug/NN
pushers/NNS
have/VBP
to/TO
go/VB
around/RP
and/CC
get/VB
kids/NNS
addicted/VBN
,/,
so/IN
that/IN
they/PRP
create/VBP
a/DT
market/NN
for/IN
themselves/PRP
./.
They/PRP
wo/MD
n't/RB
have/VB
that/DT
incentive/NN
because/IN
they/PRP
wo/MD
n't/RB
have/VB
that/DT
market/NN
./.
So/RB
I/PRP
think/VBP
the/DT
conceptual/JJ
base/NN
needs/VBZ
to/TO
be/VB
thought/VBN
out/RB
in/IN
a/DT
different/JJ
way/NN
./.
If/IN
I/PRP
am/VBP
catching/VBG
your/PRP$
attention/NN
,/,
then/RB
read/VB
a/DT
bold/JJ
and/CC
informative/JJ
article/NN
in/IN
this/DT
September/NNP
's/POS
issue/NN
of/IN
Science/NNP
by/IN
Ethan/NNP
Nadelmann/NNP
on/IN
this/DT
subject/NN
./.
We/PRP
need/VBP
at/IN
least/RBS
to/TO
consider/VB
and/CC
examine/VB
forms/NNS
of/IN
controlled/JJ
legalization/NN
of/IN
drugs/NNS
./.
I/PRP
find/VBP
it/PRP
very/RB
difficult/JJ
to/TO
say/VB
that/DT
./.
Sometimes/RB
at/IN
a/DT
reception/NN
or/CC
cocktail/NN
party/NN
I/PRP
advance/VBP
these/DT
views/NNS
and/CC
people/NNS
head/VBP
for/IN
somebody/NN
else/JJ
./.
They/PRP
do/VBP
n't/RB
even/RB
want/VB
to/TO
talk/VB
to/TO
you/PRP
./.
I/PRP
know/VBP
that/IN
I/PRP
'm/VBP
shouting/VBG
into/IN
the/DT
breeze/NN
here/RB
as/RB
far/RB
as/IN
what/WP
we/PRP
're/VBP
doing/VBG
now/RB
./.
But/CC
I/PRP
feel/VBP
that/IN
if/IN
somebody/NN
does/VBZ
n't/RB
get/VB
up/RB
and/CC
start/VB
talking/VBG
about/IN
this/DT
now/RB
,/,
the/DT
next/JJ
time/NN
around/RP
,/,
when/WRB
we/PRP
have/VBP
the/DT
next/JJ
iteration/NN
of/IN
these/DT
programs/NNS
,/,
it/PRP
will/MD
still/RB
be/VB
true/JJ
that/IN
everyone/NN
is/VBZ
scared/VBN
to/TO
talk/VB
about/IN
it/PRP
./.
No/DT
politician/NN
wants/VBZ
to/TO
say/VB
what/WP
I/PRP
just/RB
said/VBD
,/,
not/RB
for/IN
a/DT
minute/NN
./.
The/DT
U.S./NNP
economy/NN
grew/VBD
at/IN
a/DT
moderate/JJ
2.5/CD
%/NN
annual/JJ
rate/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
the/DT
same/JJ
pace/NN
as/IN
the/DT
second/JJ
quarter/NN
,/,
despite/IN
the/DT
worst/JJS
trade/NN
performance/NN
in/IN
six/CD
years/NNS
,/,
the/DT
Commerce/NNP
Department/NNP
reported/VBD
./.
Personal/JJ
spending/NN
,/,
buoyed/VBN
by/IN
a/DT
burst/NN
of/IN
automobile/NN
buying/NN
,/,
was/VBD
the/DT
main/JJ
catalyst/NN
to/TO
the/DT
economy/NN
's/POS
expansion/NN
./.
But/CC
trade/NN
,/,
one/CD
of/IN
the/DT
economy/NN
's/POS
main/JJ
forces/NNS
in/IN
the/DT
past/JJ
few/JJ
years/NNS
,/,
showed/VBD
a/DT
sharp/JJ
deterioration/NN
./.
Imports/NNS
of/IN
goods/NNS
and/CC
services/NNS
soared/VBD
,/,
while/IN
exports/NNS
were/VBD
flat/JJ
./.
Some/DT
economists/NNS
found/VBD
the/DT
mixture/NN
ominous/JJ
./.
``/``
For/IN
the/DT
past/JJ
two/CD
years/NNS
,/,
the/DT
foreign/JJ
trade/NN
sector/NN
has/VBZ
been/VBN
a/DT
major/JJ
contributor/NN
to/TO
economic/JJ
growth/NN
./.
You/PRP
ca/MD
n't/RB
rely/VB
now/RB
solely/RB
on/IN
consumer/NN
spending/NN
to/TO
sustain/VB
the/DT
economy/NN
on/IN
a/DT
solid/JJ
growth/NN
path/NN
,/,
''/''
said/VBD
Norman/NNP
Robertson/NNP
,/,
chief/JJ
economist/NN
at/IN
Mellon/NNP
Bank/NNP
in/IN
Pittsburgh/NNP
./.
Although/IN
the/DT
economy/NN
showed/VBD
no/DT
change/NN
of/IN
pace/NN
from/IN
the/DT
second/JJ
quarter/NN
,/,
many/JJ
analysts/NNS
expect/VBP
it/PRP
to/TO
slow/VB
considerably/RB
in/IN
the/DT
fourth/JJ
quarter/NN
as/IN
demand/NN
for/IN
autos/NNS
falls/VBZ
,/,
partly/RB
because/IN
of/IN
higher/JJR
prices/NNS
on/IN
models/NNS
introduced/VBN
last/JJ
month/NN
./.
Many/JJ
economists/NNS
think/VBP
the/DT
rise/NN
in/IN
the/DT
value/NN
of/IN
the/DT
U.S./NNP
dollar/NN
this/DT
year/NN
will/MD
further/RBR
crimp/VB
progress/NN
in/IN
trade/NN
,/,
because/IN
it/PRP
makes/VBZ
exports/NNS
more/RBR
expensive/RB
and/CC
imports/VBZ
cheaper/RBR
./.
And/CC
business/NN
investment/NN
--/:
which/WDT
slowed/VBD
in/IN
the/DT
third/JJ
quarter/NN
,/,
according/VBG
to/TO
yesterday/NN
's/POS
report/NN
--/:
is/VBZ
expected/VBN
to/TO
continue/VB
to/TO
be/VB
sluggish/JJ
./.
A/DT
sharp/JJ
reduction/NN
in/IN
inflation/NN
was/VBD
by/IN
far/RB
the/DT
brightest/JJS
spot/NN
in/IN
the/DT
report/NN
on/IN
the/DT
real/JJ
gross/JJ
national/JJ
product/NN
--/:
the/DT
inflation-adjusted/JJ
market/NN
value/NN
of/IN
all/PDT
the/DT
goods/NNS
and/CC
services/NNS
the/DT
economy/NN
produced/VBD
./.
An/DT
inflation/NN
gauge/NN
that/WDT
measures/VBZ
the/DT
quarterly/JJ
change/NN
in/IN
prices/NNS
of/IN
an/DT
array/NN
of/IN
goods/NNS
and/CC
services/NNS
slowed/VBD
its/PRP$
growth/NN
to/TO
a/DT
2.9/CD
%/NN
annual/JJ
rate/NN
in/IN
the/DT
third/JJ
quarter/NN
from/IN
5/CD
%/NN
in/IN
the/DT
second/NN
./.
Much/RB
of/IN
the/DT
moderation/NN
came/VBD
from/IN
declining/VBG
energy/NN
prices/NNS
,/,
which/WDT
have/VBP
since/IN
turned/VBN
up/RB
a/DT
bit/RB
,/,
analysts/NNS
said/VBD
./.
Consequently/RB
,/,
Michael/NNP
Darby/NNP
,/,
undersecretary/NN
for/IN
economic/JJ
affairs/NNS
at/IN
the/DT
Commerce/NNP
Department/NNP
,/,
said/VBD
inflation/NN
probably/RB
will/MD
edge/VB
up/RB
from/IN
the/DT
third-quarter/JJ
rate/NN
in/IN
the/DT
final/JJ
three/CD
months/NNS
of/IN
1989/CD
./.
But/CC
he/PRP
said/VBD
he/PRP
believes/VBZ
the/DT
second/JJ
quarter/NN
's/POS
5/CD
%/NN
rate/NN
``/``
will/MD
prove/VB
to/TO
have/VB
been/VBN
this/DT
year/NN
's/POS
peak/JJ
quarterly/JJ
inflation/NN
rate/NN
./.
''/''
Generally/RB
,/,
the/DT
Bush/NNP
administration/NN
expressed/VBD
satisfaction/NN
with/IN
the/DT
economy/NN
's/POS
progress/NN
as/IN
it/PRP
heads/VBZ
into/IN
its/PRP$
eighth/JJ
year/NN
of/IN
sustained/JJ
growth/NN
next/IN
month/NN
./.
Treasury/NNP
Secretary/NNP
Nicholas/NNP
Brady/NNP
called/VBD
the/DT
2.5/CD
%/NN
pace/NN
``/``
good/JJ
,/,
solid/JJ
growth/NN
,/,
''/''
although/IN
he/PRP
said/VBD
he/PRP
expects/VBZ
the/DT
expansion/NN
to/TO
slow/VB
in/IN
the/DT
fourth/JJ
quarter/NN
./.
He/PRP
added/VBD
:/:
``/``
Inflation/NN
is/VBZ
lower/JJR
than/IN
I/PRP
think/VBP
people/NNS
expected/VBD
it/PRP
to/TO
be/VB
,/,
and/CC
I/PRP
think/VBP
that/IN
's/VBZ
good/JJ
news/NN
./.
''/''
But/CC
administration/NN
officials/NNS
were/VBD
concerned/VBN
over/IN
the/DT
bleak/JJ
trade/NN
report/NN
,/,
which/WDT
showed/VBD
the/DT
deficit/NN
in/IN
the/DT
country/NN
's/POS
trade/NN
of/IN
goods/NNS
and/CC
services/NNS
swelling/VBG
to/TO
a/DT
$/$
74/CD
billion/CD
annual/JJ
rate/NN
in/IN
the/DT
third/JJ
quarter/NN
from/IN
a/DT
$/$
51/CD
billion/CD
rate/NN
in/IN
the/DT
second/JJ
quarter/NN
./.
Mr./NNP
Darby/NNP
called/VBD
it/PRP
a/DT
``/``
disappointment/NN
''/''
but/CC
predicted/VBD
exports/NNS
will/MD
pick/VB
up/RB
again/RB
./.
``/``
We/PRP
were/VBD
unprepared/JJ
for/IN
the/DT
deterioration/NN
in/IN
net/JJ
exports/NNS
,/,
''/''
said/VBD
Daniel/NNP
Van/NNP
Dyke/NNP
,/,
vice/NN
president/NN
of/IN
U.S./NNP
forecasting/NN
at/IN
Bank/NNP
of/IN
America/NNP
in/IN
San/NNP
Francisco/NNP
./.
``/``
I/PRP
ca/MD
n't/RB
believe/VB
it/PRP
will/MD
continue/VB
,/,
''/''
he/PRP
added/VBD
,/,
noting/VBG
that/IN
the/DT
economies/NNS
of/IN
the/DT
country/NN
's/POS
major/JJ
trading/NN
partners/NNS
are/VBP
strong/JJ
and/CC
prices/NNS
of/IN
U.S./NNP
products/NNS
are/VBP
still/RB
competitive/JJ
./.
Some/DT
analysts/NNS
also/RB
were/VBD
disturbed/VBN
by/IN
a/DT
pickup/NN
in/IN
the/DT
growth/NN
of/IN
business/NN
inventories/NNS
./.
While/IN
a/DT
buildup/NN
of/IN
these/DT
stocks/NNS
adds/VBZ
to/TO
GNP/NNP
,/,
it/PRP
can/MD
hurt/VB
the/DT
economy/NN
because/IN
a/DT
pileup/NN
of/IN
unsold/JJ
goods/NNS
can/MD
lead/VB
to/TO
production/NN
cuts/NNS
and/CC
layoffs/NNS
./.
According/VBG
to/TO
the/DT
report/NN
,/,
inventories/NNS
outside/IN
the/DT
farm/NN
sector/NN
grew/VBD
at/IN
an/DT
annual/JJ
rate/NN
of/IN
$/$
24.6/CD
billion/CD
in/IN
the/DT
third/JJ
quarter/NN
,/,
up/IN
from/IN
a/DT
$/$
19.5/CD
billion/CD
pace/NN
in/IN
the/DT
second/JJ
quarter/NN
./.
Manufacturers/NNS
'/POS
stocks/NNS
fattened/VBD
at/IN
an/DT
$/$
18.4/CD
billion/CD
annual/JJ
rate/NN
,/,
up/IN
from/IN
$/$
8.3/CD
billion/CD
./.
``/``
That/DT
suggests/VBZ
there/EX
is/VBZ
a/DT
little/RB
more/JJR
inventory/NN
overhang/NN
than/IN
some/DT
people/NNS
expected/VBD
,/,
''/''
said/VBD
Edward/NNP
Boss/NNP
,/,
senior/JJ
financial/JJ
economist/NN
at/IN
Continental/NNP
Bank/NNP
in/IN
Chicago/NNP
./.
``/``
I/PRP
do/VBP
n't/RB
think/VB
it/PRP
's/VBZ
anything/NN
that/WDT
's/VBZ
going/VBG
to/TO
cause/VB
a/DT
downturn/NN
in/IN
economic/JJ
activity/NN
./.
But/CC
it/PRP
will/MD
slow/VB
production/NN
./.
''/''
Devastation/NN
from/IN
Hurricane/NNP
Hugo/NNP
,/,
which/WDT
slammed/VBD
into/IN
the/DT
Southeast/NNP
coast/NN
in/IN
late/JJ
September/NNP
,/,
diminished/VBD
personal/JJ
income/NN
by/IN
about/IN
$/$
4/CD
billion/CD
,/,
the/DT
department/NN
said/VBD
,/,
but/CC
it/PRP
called/VBD
the/DT
effect/NN
on/IN
the/DT
roughly/RB
$/$
5/CD
trillion/CD
economy/NN
``/``
negligible/JJ
./.
''/''
Except/IN
for/IN
the/DT
loss/NN
from/IN
the/DT
hurricane/NN
,/,
all/PDT
the/DT
figures/NNS
were/VBD
adjusted/VBN
for/IN
seasonal/JJ
factors/NNS
and/CC
inflation/NN
./.
Here/RB
are/VBP
some/DT
of/IN
the/DT
major/JJ
components/NNS
of/IN
the/DT
gross/JJ
national/JJ
product/NN
expressed/VBN
in/IN
seasonally/RB
adjusted/JJ
annual/JJ
rates/NNS
in/IN
billions/NNS
of/IN
constant/JJ
1982/CD
dollars/NNS
:/:
In/IN
the/DT
third/JJ
quarter/NN
,/,
the/DT
implicit/JJ
price/NN
deflator/NN
fell/VBD
to/TO
2.9/CD
%/NN
of/IN
the/DT
1982/CD
average/NN
,/,
from/IN
4.6/CD
%/NN
in/IN
the/DT
previous/JJ
quarter/NN
./.
Northrop/NNP
Corp./NNP
received/VBD
a/DT
$/$
93.5/CD
million/CD
contract/NN
by/IN
the/DT
U.S./NNP
Air/NNP
Force/NNP
for/IN
production/NN
tooling/NN
and/CC
test/NN
equipment/NN
for/IN
the/DT
Tacit/NNP
Rainbow/NNP
defense-suppression/NN
missile/NN
./.
The/DT
contract/NN
provides/VBZ
additional/JJ
equipment/NN
for/IN
Northrop/NNP
,/,
the/DT
prime/JJ
contractor/NN
on/IN
the/DT
missile/NN
,/,
and/CC
also/RB
supports/VBZ
a/DT
1990/CD
purchase/NN
of/IN
90/CD
missiles/NNS
for/IN
follow-on/JJ
flight/NN
tests/NNS
./.
General/NNP
Motors/NNPS
Corp./NNP
's/POS
Chevrolet/NNP
division/NN
said/VBD
it/PRP
is/VBZ
offering/VBG
$/$
750/CD
cash/NN
incentives/NNS
on/IN
all/DT
1990/CD
models/NNS
of/IN
its/PRP$
full-size/JJ
Blazer/NNP
and/CC
Suburban/NNP
truck/NN
lines/NNS
./.
Chevrolet/NNP
already/RB
has/VBZ
cash/NN
incentives/NNS
on/IN
the/DT
1989/CD
models/NNS
of/IN
these/DT
vehicles/NNS
./.
Hudson/NNP
's/POS
Bay/NNP
Co./NNP
announced/VBD
terms/NNS
of/IN
a/DT
previously/RB
proposed/VBN
rights/NNS
issue/NN
that/WDT
is/VBZ
expected/VBN
to/TO
raise/VB
about/IN
396/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
337/CD
million/CD
net/NN
of/IN
expenses/NNS
./.
Proceeds/NNS
of/IN
the/DT
offering/NN
will/MD
be/VB
used/VBN
to/TO
redeem/VB
C$/$
264/CD
million/CD
of/IN
preferred/JJ
shares/NNS
and/CC
to/TO
reduce/VB
short-term/JJ
debt/NN
,/,
the/DT
company/NN
said/VBD
./.
Canada/NNP
's/POS
largest/JJS
department/NN
store/NN
operator/NN
said/VBD
the/DT
rights/NNS
offering/NN
will/MD
entitle/VB
holders/NNS
of/IN
its/PRP$
ordinary/JJ
shares/NNS
,/,
except/IN
residents/NNS
in/IN
the/DT
U.S./NNP
and/CC
Britain/NNP
,/,
to/TO
subscribe/VB
for/IN
two/CD
additional/JJ
shares/NNS
for/IN
every/DT
five/CD
shares/NNS
held/VBN
at/IN
a/DT
price/NN
of/IN
C$/$
31.25/CD
a/DT
share/NN
./.
The/DT
record/NN
date/NN
is/VBZ
Nov./NNP
9/CD
./.
The/DT
company/NN
has/VBZ
about/IN
31/CD
million/CD
ordinary/JJ
shares/NNS
outstanding/JJ
./.
On/IN
the/DT
Toronto/NNP
Stock/NNP
Exchange/NNP
,/,
Hudson/NNP
's/POS
Bay/NNP
shares/NNS
closed/VBD
at/IN
C$/$
35/CD
,/,
up/RB
12.5/CD
cents/NNS
./.
Hudson/NNP
's/POS
Bay/NNP
said/VBD
that/IN
Woodbridge/NNP
Co./NNP
,/,
which/WDT
currently/RB
holds/VBZ
about/IN
77/CD
%/NN
of/IN
the/DT
ordinary/JJ
shares/NNS
,/,
will/MD
subscribe/VB
for/IN
all/PDT
the/DT
shares/NNS
to/TO
which/WDT
it/PRP
is/VBZ
entitled/VBN
and/CC
for/IN
any/DT
shares/NNS
that/WDT
are/VBP
n't/RB
otherwise/RB
taken/VBN
up/RP
./.
Woodbridge/NNP
is/VBZ
a/DT
holding/VBG
company/NN
owned/VBN
by/IN
Toronto/NNP
's/POS
Thomson/NNP
family/NN
./.
Hudson/NNP
's/POS
Bay/NN
said/VBD
it/PRP
will/MD
redeem/VB
9.5/CD
million/CD
Series/NN
H/NNP
preferred/JJ
shares/NNS
on/IN
Oct./NNP
31/CD
at/IN
a/DT
price/NN
of/IN
C$/$
27.75/CD
each/DT
./.
The/DT
move/NN
was/VBD
approved/VBN
at/IN
a/DT
special/JJ
shareholders/NNS
'/POS
meeting/NN
yesterday/NN
./.
Gary/NNP
Lukassen/NNP
,/,
chief/JJ
financial/JJ
officer/NN
,/,
said/VBD
redemption/NN
of/IN
the/DT
preferred/JJ
shares/NNS
,/,
originally/RB
issued/VBN
at/IN
C$/$
25/CD
each/DT
,/,
will/MD
eliminate/VB
dividend/NN
payments/NNS
of/IN
C$/$
17.9/CD
million/CD
annually/RB
./.
Iverson/NNP
Technology/NNP
Corp./NNP
was/VBD
one/CD
of/IN
the/DT
fastest-growing/JJS
small/JJ
companies/NNS
in/IN
America/NNP
--/:
until/IN
last/JJ
year/NN
./.
The/DT
McLean/NNP
,/,
Va./NNP
,/,
company/NN
modifies/VBZ
computers/NNS
to/TO
keep/VB
sensitive/JJ
military/JJ
data/NNS
out/IN
of/IN
unfriendly/JJ
hands/NNS
./.
From/IN
1984/CD
to/TO
1987/CD
,/,
its/PRP$
earnings/NNS
soared/VBD
six-fold/RB
,/,
to/TO
$/$
3.8/CD
million/CD
,/,
on/IN
a/DT
seven-fold/JJ
increase/NN
in/IN
revenue/NN
,/,
to/TO
$/$
44.1/CD
million/CD
./.
But/CC
in/IN
1988/CD
,/,
it/PRP
ran/VBD
into/IN
a/DT
buzz/NN
saw/NN
:/:
a/DT
Defense/NNP
Department/NNP
spending/NN
freeze/NN
./.
Iverson/NNP
's/POS
earnings/NNS
plunged/VBD
70/CD
%/NN
to/TO
$/$
1.2/CD
million/CD
./.
The/DT
troubles/NNS
continued/VBN
in/IN
this/DT
year/NN
's/POS
first/JJ
half/NN
,/,
when/WRB
profit/NN
plunged/VBD
81/CD
%/NN
to/TO
$/$
302,000/CD
./.
Iverson/NNP
Technology/NNP
is/VBZ
one/CD
of/IN
many/JJ
small/JJ
defense/NN
contractors/NNS
besieged/VBN
by/IN
the/DT
slowdown/NN
in/IN
defense/NN
spending/NN
./.
Unlike/IN
larger/JJR
contractors/NNS
with/IN
a/DT
broad/JJ
enough/JJ
base/NN
to/TO
weather/VB
the/DT
downturn/NN
easily/RB
,/,
these/DT
companies/NNS
are/VBP
suffering/VBG
big/JJ
drops/NNS
in/IN
business/NN
as/IN
once-lucrative/JJ
specialty/NN
niches/NNS
in/IN
the/DT
massive/JJ
military/NN
market/NN
erode/VBP
or/CC
even/RB
disappear/VBP
./.
Companies/NNS
that/WDT
only/RB
recently/RB
were/VBD
thriving/JJ
find/VBP
themselves/PRP
scrambling/VBG
to/TO
survive/VB
./.
As/IN
their/PRP$
varied/JJ
strategies/NNS
suggest/VBP
,/,
there/EX
is/VBZ
more/JJR
than/IN
one/CD
way/NN
to/TO
respond/VB
to/TO
a/DT
disaster/NN
--/:
though/IN
it/PRP
's/VBZ
too/RB
soon/RB
to/TO
tell/VB
whether/IN
the/DT
changes/NNS
will/MD
pay/VB
off/RP
./.
For/IN
many/JJ
companies/NNS
,/,
the/DT
instinctive/JJ
first/JJ
response/NN
is/VBZ
to/TO
cut/VB
costs/NNS
./.
Others/NNS
are/VBP
trying/VBG
to/TO
find/VB
specialty/NN
defense/NN
work/NN
spared/VBN
by/IN
the/DT
slowdown/NN
or/CC
new/JJ
niches/NNS
created/VBN
by/IN
budget-cutting/NN
./.
More/RBR
venturesome/JJ
businesses/NNS
are/VBP
applying/VBG
their/PRP$
skills/NNS
in/IN
commercial/JJ
fields/NNS
./.
ERC/NNP
International/NNP
Inc./NNP
,/,
which/WDT
provides/VBZ
professional/JJ
and/CC
technical/JJ
services/NNS
to/TO
the/DT
military/NN
,/,
is/VBZ
refining/VBG
its/PRP$
defense/NN
niche/NN
,/,
not/RB
retreating/VBG
from/IN
it/PRP
./.
After/IN
quadrupling/VBG
annual/JJ
earnings/NNS
over/IN
four/CD
years/NNS
to/TO
$/$
6.8/CD
million/CD
in/IN
1988/CD
,/,
the/DT
Fairfax/NNP
,/,
Va./NNP
,/,
company/NN
,/,
posted/VBD
a/DT
23/CD
%/NN
drop/NN
in/IN
earnings/NNS
for/IN
this/DT
year/NN
's/POS
first/JJ
half/NN
./.
In/IN
the/DT
belief/NN
that/DT
development/NN
of/IN
advanced/JJ
military/JJ
technology/NN
will/MD
remain/VB
a/DT
top/JJ
Defense/NNP
Department/NNP
priority/NN
,/,
ERC/NNP
last/JJ
year/NN
acquired/VBD
W.J./NNP
Schafer/NNP
Associates/NNPS
,/,
a/DT
technical/JJ
and/CC
scientific/JJ
analysis/NN
company/NN
with/IN
contracts/NNS
under/IN
the/DT
Strategic/NNP
Defense/NNP
Initiative/NNP
./.
While/IN
the/DT
SDI/NNP
anti-missile/JJ
program/NN
recently/RB
awarded/VBD
W.J./NNP
Schafer/NNP
two/CD
contracts/NNS
totaling/VBG
$/$
13.4/CD
million/CD
,/,
ERC/NNP
's/POS
chairman/NN
and/CC
founder/NN
,/,
Jack/NNP
Aalseth/NNP
,/,
says/VBZ
he/PRP
bought/VBD
the/DT
company/NN
``/``
more/JJR
for/IN
its/PRP$
technology/NN
than/IN
its/PRP$
customer/NN
./.
''/''
UNC/NNP
Inc./NNP
,/,
an/DT
Annapolis/NNP
,/,
Md./NNP
,/,
contractor/NN
that/WDT
earned/VBD
$/$
23.8/CD
million/CD
on/IN
revenue/NN
of/IN
$/$
400.4/CD
million/CD
in/IN
1988/CD
,/,
has/VBZ
gone/VBN
even/RB
further/RBR
in/IN
realigning/VBG
its/PRP$
military/JJ
business/NN
./.
As/IN
orders/NNS
for/IN
its/PRP$
aircraft/NN
and/CC
submarine/NN
parts/NNS
dwindled/VBD
,/,
three/CD
years/NNS
of/IN
steady/JJ
growth/NN
ended/VBD
with/IN
a/DT
69/CD
%/NN
drop/NN
in/IN
income/NN
in/IN
this/DT
year/NN
's/POS
first/JJ
half/NN
./.
The/DT
company/NN
hit/VBD
on/IN
a/DT
new/JJ
strategy/NN
:/:
If/IN
the/DT
Defense/NNP
Department/NNP
is/VBZ
so/RB
intent/JJ
on/IN
saving/VBG
money/NN
,/,
why/WRB
not/RB
make/VB
money/NN
off/IN
that/DT
trend/NN
?/.
Among/IN
the/DT
company/NN
's/POS
current/JJ
efforts/NNS
:/:
repairing/VBG
old/JJ
parts/NNS
at/IN
25/CD
%/NN
of/IN
the/DT
cost/NN
of/IN
replacing/VBG
them/PRP
./.
UNC/NNP
also/RB
is/VBZ
selling/VBG
new/JJ
parts/NNS
,/,
if/IN
needed/VBN
,/,
directly/RB
to/TO
the/DT
military/JJ
instead/RB
of/IN
through/IN
a/DT
prime/JJ
contractor/NN
./.
At/IN
as/RB
little/JJ
as/IN
one-third/NN
of/IN
the/DT
government/NN
's/POS
cost/NN
,/,
the/DT
company/NN
is/VBZ
running/VBG
a/DT
program/NN
to/TO
train/VB
Army/NNP
helicopter/NN
pilots/NNS
./.
It/PRP
is/VBZ
also/RB
taking/VBG
over/RP
the/DT
maintenance/NN
of/IN
certain/JJ
Navy/NNP
aircraft/NN
with/IN
40/CD
%/NN
fewer/JJR
people/NNS
than/IN
the/DT
military/NN
used/VBD
./.
In/IN
another/DT
approach/NN
,/,
tiny/JJ
Iverson/NNP
Technology/NNP
is/VBZ
trying/VBG
to/TO
resume/VB
its/PRP$
growth/NN
by/IN
braving/VBG
the/DT
new/JJ
world/NN
of/IN
commercial/JJ
products/NNS
./.
Donald/NNP
Iverson/NNP
,/,
chairman/NN
,/,
says/VBZ
he/PRP
hopes/VBZ
the/DT
company/NN
can/MD
eventually/RB
get/VB
up/RB
to/TO
half/NN
of/IN
its/PRP$
revenue/NN
from/IN
commercial/JJ
markets/NNS
./.
For/IN
now/RB
,/,
he/PRP
says/VBZ
,/,
``/``
we/PRP
're/VBP
looking/VBG
at/IN
buying/VBG
some/DT
small/JJ
companies/NNS
with/IN
niche/NN
markets/NNS
in/IN
the/DT
personal-computer/NN
business/NN
./.
''/''
Earlier/RB
this/DT
month/NN
,/,
Mr./NNP
Iverson/NNP
agreed/VBD
to/TO
buy/VB
exclusive/JJ
rights/NNS
to/TO
a/DT
software/NN
system/NN
developed/VBN
by/IN
Visher/NNP
Systems/NNPS
Inc./NNP
,/,
Salt/NNP
Lake/NNP
City/NNP
./.
The/DT
product/NN
automates/VBZ
an/DT
array/NN
of/IN
functions/NNS
performed/VBN
at/IN
small/JJ
to/TO
medium-size/JJ
printing/NN
companies/NNS
./.
Mr./NNP
Iverson/NNP
says/VBZ
there/EX
are/VBP
5,000/CD
potential/JJ
customers/NNS
for/IN
the/DT
software/NN
in/IN
the/DT
Washington/NNP
,/,
D.C./NNP
,/,
area/NN
alone/RB
./.
QuesTech/NNP
Inc./NNP
,/,
Falls/NNP
Church/NNP
,/,
Va./NNP
,/,
also/RB
has/VBZ
acquired/VBN
some/DT
companies/NNS
outside/IN
the/DT
military/JJ
market/NN
./.
Moreover/RB
,/,
it/PRP
's/VBZ
trying/VBG
to/TO
transfer/VB
its/PRP$
skill/NN
at/IN
designing/VBG
military/JJ
equipment/NN
to/TO
commercial/JJ
ventures/NNS
./.
A/DT
partnership/NN
with/IN
a/DT
Williamsburg/NNP
,/,
Va./NNP
,/,
unit/NN
of/IN
Shell/NNP
Oil/NNP
Co./NNP
recently/RB
patented/VBD
a/DT
process/NN
for/IN
producing/VBG
plastic/NN
food/NN
containers/NNS
that/WDT
wo/MD
n't/RB
melt/VB
in/IN
microwave/NN
ovens/NNS
./.
``/``
We/PRP
're/VBP
trying/VBG
to/TO
take/VB
the/DT
imagination/NN
and/CC
talent/NN
of/IN
our/PRP$
engineers/NNS
and/CC
come/VB
up/RB
with/IN
new/JJ
processes/NNS
for/IN
industry/NN
,/,
''/''
says/VBZ
Vincent/NNP
Salvatori/NNP
,/,
QuesTech/NNP
's/POS
chief/JJ
executive/NN
./.
``/``
It/PRP
is/VBZ
an/DT
effort/NN
to/TO
branch/VB
out/RB
from/IN
the/DT
government/NN
,/,
which/WDT
is/VBZ
very/RB
difficult/JJ
for/IN
a/DT
defense/NN
contractor/NN
./.
''/''
Mr./NNP
Salvatori/NNP
should/MD
know/VB
./.
Instead/RB
of/IN
helping/VBG
his/PRP$
company/NN
in/IN
the/DT
defense/NN
spending/NN
slowdown/NN
,/,
Dynamic/NNP
Engineering/NNP
Inc./NNP
,/,
a/DT
troubled/JJ
subsidiary/NN
that/WDT
makes/VBZ
wind/NN
tunnels/NNS
for/IN
the/DT
space/NN
industry/NN
,/,
contributed/VBD
to/TO
much/JJ
of/IN
QuesTech/NNP
's/POS
$/$
3.3/CD
million/CD
loss/NN
on/IN
$/$
55.6/CD
million/CD
in/IN
revenue/NN
last/JJ
year/NN
./.
In/IN
January/NNP
,/,
Mr./NNP
Salvatori/NNP
sold/VBD
the/DT
unit/NN
./.
``/``
It/PRP
was/VBD
our/PRP$
first/JJ
acquisition/NN
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
and/CC
it/PRP
was/VBD
a/DT
mistake/NN
./.
''/''
Some/DT
companies/NNS
are/VBP
cutting/VBG
costs/NNS
and/CC
hoping/VBG
for/IN
the/DT
best/JJS
./.
Telos/NNP
Corp./NNP
,/,
a/DT
Santa/NNP
Monica/NNP
,/,
Calif./NNP
,/,
provider/NN
of/IN
software-development/NN
and/CC
hardware-maintenance/NN
services/NNS
to/TO
the/DT
military/NN
,/,
enjoyed/VBD
steady/JJ
growth/NN
until/IN
this/DT
year/NN
./.
Following/VBG
a/DT
tripling/VBG
of/IN
earnings/NNS
,/,
to/TO
$/$
3.9/CD
million/CD
,/,
on/IN
a/DT
doubling/VBG
of/IN
revenue/NN
,/,
to/TO
$/$
116/CD
million/CD
,/,
over/IN
four/CD
years/NNS
,/,
earnings/NNS
in/IN
the/DT
company/NN
's/POS
fiscal/JJ
first/JJ
quarter/NN
,/,
which/WDT
ended/VBD
June/NNP
30/CD
,/,
plunged/VBD
90/CD
%/NN
to/TO
$/$
45,000/CD
./.
A/DT
one-time/JJ
write-off/NN
for/IN
booking/VBG
nonexistent/JJ
revenue/NN
was/VBD
partly/RB
to/TO
blame/VB
,/,
but/CC
so/RB
were/VBD
lower/JJR
profits/NNS
from/IN
a/DT
stingier/JJR
contract/NN
with/IN
the/DT
Army/NNP
and/CC
delays/NNS
in/IN
getting/VBG
paid/VBN
./.
Telos/NNP
responded/VBD
by/IN
combining/VBG
three/CD
of/IN
its/PRP$
five/CD
divisions/NNS
to/TO
reduce/VB
expenses/NNS
and/CC
``/``
bring/VB
more/JJR
focus/NN
to/TO
potentially/RB
fewer/JJR
bidding/NN
opportunities/NNS
,/,
''/''
says/VBZ
Lin/NNP
Conger/NNP
,/,
Telos/NNP
chairman/NN
and/CC
controlling/VBG
shareholder/NN
./.
``/``
It/PRP
's/VBZ
evident/JJ
we/PRP
're/VBP
entering/VBG
a/DT
more/RBR
competitive/JJ
era/NN
,/,
''/''
he/PRP
says/VBZ
./.
TransTechnology/NNP
Corp./NNP
,/,
a/DT
Sherman/NNP
Oaks/NNPS
,/,
Calif./NNP
,/,
defense/NN
contractor/NN
that/WDT
earned/VBD
$/$
9.2/CD
million/CD
on/IN
revenue/NN
of/IN
$/$
235.2/CD
million/CD
in/IN
1988/CD
,/,
provides/VBZ
a/DT
more/RBR
dramatic/JJ
example/NN
of/IN
cost-cutting/NN
./.
The/DT
company/NN
not/RB
only/RB
merged/VBD
three/CD
military-electronics/NNS
manufacturing/VBG
operations/NNS
,/,
but/CC
also/RB
closed/VBD
an/DT
unrelated/JJ
plant/NN
that/WDT
makes/VBZ
ordnance/NN
devices/NNS
used/VBN
in/IN
fighter/NN
planes/NNS
and/CC
missiles/NNS
./.
The/DT
closing/NN
contributed/VBD
to/TO
a/DT
$/$
3.4/CD
million/CD
loss/NN
in/IN
the/DT
fiscal/JJ
first/JJ
quarter/NN
ended/VBN
July/NNP
31/CD
--/:
its/PRP$
first/JJ
quarterly/JJ
loss/NN
since/IN
1974/CD
./.
``/``
Our/PRP$
ordnance/NN
business/NN
has/VBZ
been/VBN
hurt/VBN
very/RB
badly/RB
by/IN
the/DT
slowdown/NN
,/,
''/''
says/VBZ
Arch/NNP
Scurlock/NNP
,/,
TransTechnology/NNP
's/POS
chairman/NN
./.
``/``
I/PRP
would/MD
n't/RB
say/VB
we/PRP
're/VBP
out/IN
of/IN
the/DT
business/NN
./.
But/CC
we/PRP
're/VBP
not/RB
making/VBG
as/RB
many/JJ
{/(
pyrotechnic/JJ
devices/NNS
we/PRP
used/VBD
to/TO
./.
''/''
The/DT
growing/VBG
crowd/NN
of/IN
Japanese/JJ
investors/NNS
buying/VBG
up/RP
foreign/JJ
companies/NNS
are/VBP
n't/RB
all/RB
strait-laced/JJ
businessmen/NNS
in/IN
dark/JJ
suits/NNS
./.
Yasumichi/NNP
Morishita/NNP
,/,
whose/WP$
art/NN
gallery/NN
last/JJ
month/NN
became/VBD
a/DT
major/JJ
shareholder/NN
in/IN
Christies/NNP
International/NNP
PLC/NNP
,/,
the/DT
London/NNP
auction/NN
house/NN
,/,
is/VBZ
one/CD
man/NN
who/WP
does/VBZ
n't/RB
fit/VB
the/DT
mold/NN
./.
In/IN
Japan/NNP
,/,
he/PRP
's/VBZ
known/VBN
in/IN
racy/JJ
weekly/JJ
magazines/NNS
as/IN
the/DT
``/``
King/NNP
of/IN
Shady/NNP
Money/NNP
./.
''/''
If/IN
nothing/NN
else/RB
,/,
the/DT
57-year-old/NN
's/POS
past/NN
has/VBZ
its/PRP$
share/NN
of/IN
dents/NNS
./.
Nearly/RB
20/CD
years/NNS
ago/RB
,/,
Mr./NNP
Morishita/NNP
,/,
founder/NN
and/CC
chairman/NN
of/IN
Aichi/NNP
Corp./NNP
,/,
a/DT
finance/NN
company/NN
,/,
received/VBD
a/DT
10-month/JJ
suspended/JJ
sentence/NN
from/IN
a/DT
Tokyo/NNP
court/NN
for/IN
violating/VBG
a/DT
money-lending/JJ
law/NN
and/CC
an/DT
income/NN
tax/NN
law/NN
./.
He/PRP
was/VBD
convicted/VBN
of/IN
charging/VBG
interest/NN
rates/NNS
much/RB
higher/JJR
than/IN
what/WP
the/DT
law/NN
permitted/VBD
,/,
and/CC
attempting/VBG
to/TO
evade/VB
income/NN
taxes/NNS
by/IN
using/VBG
a/DT
double/JJ
accounting/NN
system/NN
./.
He/PRP
's/POS
had/VBD
other/JJ
brushes/NNS
with/IN
the/DT
law/NN
./.
He/PRP
was/VBD
arrested/VBN
,/,
though/IN
not/RB
indicted/VBN
,/,
on/IN
at/IN
least/JJS
three/CD
other/JJ
occasions/NNS
in/IN
the/DT
'60s/CD
and/CC
'70s/CD
:/:
for/IN
assault/NN
and/CC
unlawful/JJ
confinement/NN
,/,
for/IN
fraud/NN
and/CC
forgery/NN
of/IN
private/JJ
documents/NNS
,/,
and/CC
for/IN
extortion/NN
./.
Christies/NNP
says/VBZ
it/PRP
has/VBZ
had/VBD
no/DT
contact/NN
with/IN
Mr./NNP
Morishita/NNP
since/IN
the/DT
stock/NN
purchase/NN
,/,
but/CC
that/IN
it/PRP
's/VBZ
happy/JJ
to/TO
deal/VB
with/IN
him/PRP
./.
``/``
We/PRP
like/VBP
to/TO
make/VB
our/PRP$
own/JJ
judgments/NNS
''/''
about/IN
Mr./NNP
Morishita/NNP
,/,
says/VBZ
Christopher/NNP
Davidge/NNP
,/,
Christies/NNP
'/POS
group/NN
managing/VBG
director/NN
./.
``/``
People/NNS
have/VBP
a/DT
different/JJ
reputation/NN
country/NN
by/IN
country/NN
./.
''/''
Mr./NNP
Morishita/NNP
is/VBZ
a/DT
leading/JJ
figure/NN
among/IN
Japan/NNP
's/POS
38,000/CD
``/``
machikin/FW
,/,
''/''
which/WDT
lend/VBP
to/TO
small/JJ
companies/NNS
,/,
and/CC
``/``
sarakin/FW
,/,
''/''
which/WDT
lend/VBP
to/TO
individuals/NNS
./.
Many/JJ
of/IN
these/DT
financiers/NNS
lend/VBP
freely/RB
,/,
often/RB
without/IN
demanding/VBG
collateral/NN
./.
But/CC
the/DT
interest/NN
rates/NNS
they/PRP
charge/VBP
are/VBP
often/RB
near/IN
Japan/NNP
's/POS
54.75/CD
%/NN
legal/JJ
limit/NN
,/,
says/VBZ
Kenji/NNP
Utsunomiya/NNP
,/,
a/DT
lawyer/NN
specializing/VBG
in/IN
loan/NN
troubles/NNS
./.
Aichi/NNP
is/VBZ
a/DT
machikin/FW
,/,
Mr./NNP
Utsunomiya/NNP
says/VBZ
,/,
and/CC
``/``
one/CD
of/IN
the/DT
nasty/JJ
ones/NNS
./.
''/''
In/IN
describing/VBG
that/DT
business/NN
in/IN
general/JJ
,/,
he/PRP
says/VBZ
that/IN
when/WRB
the/DT
client/NN
ca/MD
n't/RB
repay/VB
the/DT
loan/NN
,/,
some/DT
machikin/FW
``/``
clutch/VBP
on/IN
like/IN
hyenas/NNS
''/''
and/CC
even/RB
take/VBP
over/RP
the/DT
client/NN
's/POS
company/NN
./.
Last/JJ
month/NN
,/,
Mr./NNP
Morishita/NNP
's/POS
new/JJ
gallery/NN
,/,
Aska/NNP
International/NNP
Ltd./NNP
,/,
purchased/VBD
6.4/CD
%/NN
of/IN
Christies/NNP
for/IN
#/#
33/CD
million/CD
$/$
53.3/CD
million/CD
Acquired/VBN
from/IN
Carisbrook/NNP
Holdings/NNP
U.K./NNP
Ltd./NNP
,/,
a/DT
company/NN
owned/VBN
by/IN
Australian/JJ
financier/NN
Robert/NNP
Holmes/NNP
a/DT
Court/NNP
,/,
the/DT
stake/NN
was/VBD
apparently/RB
the/DT
first/JJ
of/IN
its/PRP$
kind/NN
for/IN
Aska/NNP
,/,
an/DT
entity/NN
separate/JJ
from/IN
Aichi/NNP
./.
And/CC
the/DT
acquisition/NN
,/,
which/WDT
made/VBD
Aska/NNP
one/CD
of/IN
Christies/NNP
'/POS
top/JJ
five/CD
shareholders/NNS
,/,
left/VBD
many/JJ
people/NNS
wondering/VBG
who/WP
this/DT
man/NN
was/VBD
and/CC
what/WP
his/PRP$
intentions/NNS
were/VBD
./.
``/``
We/PRP
're/VBP
an/DT
investor/NN
,/,
''/''
Mr./NNP
Morishita/NNP
says/VBZ
,/,
sitting/VBG
back/RB
in/IN
his/PRP$
purple/JJ
gallery/NN
filled/VBN
with/IN
some/DT
20/CD
Monets/NNPS
and/CC
Renoirs/NNPS
./.
``/``
In/IN
the/DT
long/JJ
run/NN
,/,
the/DT
stock/NN
prices/NNS
will/MD
go/VB
up/RP
./.
''/''
It/PRP
's/VBZ
not/RB
clear/JJ
whether/IN
Aska/NNP
plans/VBZ
to/TO
buy/VB
more/JJR
shares/NNS
./.
But/CC
Christies/NNP
,/,
Mr./NNP
Morishita/NNP
insists/VBZ
,/,
is/VBZ
happy/JJ
to/TO
see/VB
him/PRP
become/VB
a/DT
long-term/JJ
stockholder/NN
./.
Mr./NNP
Morishita/NNP
considers/VBZ
himself/PRP
a/DT
connoisseur/NN
of/IN
art/NN
./.
In/IN
30/CD
years/NNS
of/IN
collecting/VBG
impressionist/JJ
and/CC
Japanese/JJ
paintings/NNS
,/,
he/PRP
has/VBZ
acquired/VBN
600/CD
items/NNS
,/,
he/PRP
says/VBZ
,/,
enough/JJ
to/TO
persuade/VB
him/PRP
to/TO
start/VB
a/DT
museum/NN
next/IN
year/NN
./.
He/PRP
says/VBZ
he/PRP
spent/VBD
$/$
300/CD
million/CD
on/IN
his/PRP$
art/NN
business/NN
this/DT
year/NN
./.
A/DT
week/NN
ago/RB
,/,
his/PRP$
gallery/NN
racked/VBD
up/RP
a/DT
$/$
23/CD
million/CD
tab/NN
at/IN
a/DT
Sotheby/NNP
's/POS
auction/NN
in/IN
New/NNP
York/NNP
buying/VBG
seven/CD
works/NNS
,/,
including/VBG
a/DT
Picasso/NNP
./.
``/``
He/PRP
makes/VBZ
snap/JJ
judgments/NNS
,/,
''/''
says/VBZ
Kiyotaka/NNP
Kori/NNP
,/,
the/DT
art/NN
gallery/NN
's/POS
manager/NN
and/CC
Mr./NNP
Morishita/NNP
's/POS
secretary/NN
for/IN
more/RBR|JJR
than/IN
seven/CD
years/NNS
./.
Mr./NNP
Morishita/NNP
's/POS
main/JJ
business/NN
certainly/RB
appears/VBZ
to/TO
be/VB
thriving/VBG
,/,
although/IN
he/PRP
wo/MD
n't/RB
disclose/VB
numbers/NNS
./.
According/VBG
to/TO
Teikoku/NNP
Data/NNP
Bank/NNP
Ltd./NNP
,/,
which/WDT
tracks/VBZ
company/NN
earnings/NNS
,/,
Aichi/NNP
's/POS
revenue/NN
rose/VBD
15/CD
%/NN
to/TO
49.3/CD
billion/CD
yen/NNS
$/$
348.4/CD
million/CD
the/DT
year/NN
ended/VBD
February/NNP
./.
Revenue/NN
doubled/VBD
from/IN
two/CD
years/NNS
ago/RB
./.
That/DT
is/VBZ
,/,
if/IN
the/DT
company/NN
reported/VBD
results/NNS
correctly/RB
./.
The/DT
Asahi/NNP
Shimbun/NNP
,/,
a/DT
Japanese/JJ
daily/JJ
,/,
last/JJ
month/NN
reported/VBD
that/IN
Aichi/NNS
revised/VBD
its/PRP$
tax/NN
calculations/NNS
after/IN
being/VBG
challenged/VBN
for/IN
allegedly/RB
failing/VBG
to/TO
report/VB
all/DT
of/IN
its/PRP$
income/NN
to/TO
tax/NN
authorities/NNS
over/IN
a/DT
two-year/JJ
period/NN
./.
The/DT
Tokyo/NNP
Regional/NNP
Taxation/NNP
Office/NNP
declines/VBZ
to/TO
comment/VB
,/,
and/CC
Mr./NNP
Kori/NNP
,/,
the/DT
tycoon/NN
's/POS
secretary/NN
,/,
says/VBZ
the/DT
problem/NN
simply/RB
resulted/VBD
from/IN
a/DT
difference/NN
of/IN
opinion/NN
over/IN
what/WP
was/VBD
considered/VBN
income/NN
./.
The/DT
small/JJ
,/,
wiry/JJ
Mr./NNP
Morishita/NNP
comes/VBZ
across/RP
as/IN
an/DT
outspoken/JJ
man/NN
of/IN
the/DT
world/NN
./.
Stretching/VBG
his/PRP$
arms/NNS
in/IN
his/PRP$
silky/JJ
white/JJ
shirt/NN
and/CC
squeaking/VBG
his/PRP$
black/JJ
shoes/NNS
,/,
he/PRP
lectures/VBZ
a/DT
visitor/NN
about/IN
the/DT
way/NN
to/TO
sell/VB
American/JJ
real/JJ
estate/NN
and/CC
boasts/VBZ
about/IN
his/PRP$
friendship/NN
with/IN
Margaret/NNP
Thatcher/NNP
's/POS
son/NN
./.
But/CC
when/WRB
asked/VBD
what/WP
exactly/RB
he/PRP
does/VBZ
in/IN
business/NN
,/,
he/PRP
immediately/RB
takes/VBZ
offense/NN
./.
``/``
Are/VBP
you/PRP
stupid/JJ
?/.
''/''
he/PRP
snaps/VBZ
./.
``/``
You/PRP
should/MD
know/VB
what/WP
questions/NNS
to/TO
ask/VB
to/TO
get/VB
people/NNS
to/TO
answer/VB
./.
''/''
Not/RB
many/JJ
people/NNS
know/VBP
the/DT
details/NNS
of/IN
Mr./NNP
Morishita/NNP
's/POS
business/NN
,/,
but/CC
it/PRP
's/VBZ
a/DT
source/NN
of/IN
rumors/NNS
about/IN
shady/JJ
dealings/NNS
./.
When/WRB
a/DT
small/JJ
company/NN
goes/VBZ
belly-up/RB
,/,
for/IN
instance/NN
,/,
the/DT
gossipy/JJ
weekly/JJ
magazines/NNS
are/VBP
often/RB
quick/JJ
to/TO
link/VB
the/DT
demise/NN
with/IN
Aichi/NNP
./.
Mr./NNP
Morishita/NNP
scoffs/VBZ
at/IN
those/DT
stories/NNS
,/,
as/RB
well/RB
as/IN
the/DT
ones/NNS
connecting/VBG
him/PRP
to/TO
the/DT
Japanese/JJ
mob/NN
./.
He/PRP
says/VBZ
he/PRP
has/VBZ
never/RB
even/RB
dined/VBN
with/IN
gangsters/NNS
./.
The/DT
seventh/JJ
child/NN
of/IN
a/DT
store/NN
owner/NN
in/IN
Aichi/NNP
prefecture/NN
,/,
Mr./NNP
Morishita/NNP
started/VBD
out/RP
in/IN
the/DT
textile/NN
business/NN
./.
From/IN
there/RB
,/,
he/PRP
set/VBD
up/RP
his/PRP$
finance/NN
company/NN
and/CC
rapidly/RB
expanded/VBD
from/IN
lending/VBG
to/TO
investment/NN
in/IN
real/JJ
estate/NN
to/TO
building/VBG
golf/NN
courses/NNS
./.
He/PRP
spends/VBZ
most/JJS
weekends/NNS
flying/VBG
his/PRP$
helicopter/NN
to/TO
one/CD
of/IN
his/PRP$
nine/CD
courses/NNS
,/,
he/PRP
says/VBZ
,/,
two/CD
of/IN
which/WDT
were/VBD
designed/VBN
by/IN
Jack/NNP
Nicklaus/NNP
./.
He/PRP
also/RB
owns/VBZ
courses/NNS
in/IN
the/DT
U.S./NNP
and/CC
France/NNP
./.
The/DT
gruff/JJ
financier/NN
recently/RB
started/VBD
socializing/VBG
in/IN
upper-class/JJ
circles/NNS
./.
Although/IN
he/PRP
says/VBZ
he/PRP
was/VBD
n't/RB
keen/VB
on/IN
going/VBG
,/,
last/JJ
year/NN
he/PRP
attended/VBD
a/DT
New/NNP
York/NNP
gala/NN
where/WRB
his/PRP$
daughter/NN
made/VBD
her/PRP$
debut/NN
./.
He/PRP
also/RB
leads/VBZ
an/DT
opulent/JJ
life/NN
style/NN
./.
Even/RB
in/IN
Denenchofu/NNP
,/,
one/CD
of/IN
Tokyo/NNP
's/POS
richest/JJS
neighborhoods/NNS
,/,
Mr./NNP
Morishita/NNP
's/POS
splashy/JJ
brick/NN
manor/NN
--/:
one/CD
of/IN
some/RB
10/CD
houses/NNS
he/PRP
owns/VBZ
--/:
outshines/VBZ
the/DT
neighbors/NNS
'/POS
./.
A/DT
lavish/JJ
white/JJ
portico/NN
with/IN
a/DT
stained-glass/NN
window/NN
towers/NNS
over/IN
the/DT
brick/NN
wall/NN
surrounding/VBG
his/PRP$
property/NN
./.
Although/IN
Mr./NNP
Morishita/NNP
says/VBZ
little/JJ
about/IN
his/PRP$
business/NN
,/,
he/PRP
offers/VBZ
one/CD
rule/NN
to/TO
success/NN
:/:
Never/RB
gamble/VB
too/RB
far/RB
./.
``/``
I/PRP
quit/VBP
after/IN
one/CD
try/NN
,/,
whether/IN
I/PRP
win/VBP
or/CC
lose/VBP
,/,
''/''
he/PRP
says/VBZ
./.
``/``
I/PRP
'm/VBP
done/VBN
in/IN
two/CD
minutes/NNS
./.
''/''
Mr./NNP
Morishita/NNP
says/VBZ
he/PRP
intends/VBZ
to/TO
expand/VB
his/PRP$
business/NN
to/TO
many/JJ
other/JJ
areas/NNS
at/IN
home/NN
and/CC
abroad/RB
./.
He/PRP
'll/MD
be/VB
there/RB
wherever/WRB
there/EX
's/VBZ
money/NN
to/TO
be/VB
made/VBN
,/,
laughs/VBZ
Mr./NNP
Kori/NNP
,/,
the/DT
secretary/NN
./.
``/``
Who/WP
knows/VBZ
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
if/IN
he/PRP
heard/VBD
that/IN
soybeans/NNS
make/VBP
money/NN
today/NN
,/,
he/PRP
might/MD
be/VB
flying/VBG
out/IN
to/TO
Chicago/NNP
tomorrow/NN
./.
''/''
WHO/WP
'S/VBZ
NEWS/NN
:/:
Arthur/NNP
Price/NNP
resigned/VBD
as/IN
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
MTM/NNP
Enterprises/NNP
Inc./NNP
,/,
a/DT
Studio-City/NNP
,/,
Calif./NNP
,/,
entertainment/NN
concern/NN
./.
He/PRP
co-founded/VBD
the/DT
company/NN
with/IN
Grant/NNP
Tinker/NNP
and/CC
Mary/NNP
Tyler/NNP
Moore/NNP
in/IN
1969/CD
./.
MTM/NNP
is/VBZ
a/DT
unit/NN
of/IN
British-based/JJ
TVS/NNP
Entertainment/NNP
PLC/NNP
,/,
whose/WP$
chief/JJ
executive/JJ
officer/NN
,/,
James/NNP
Gatward/NNP
,/,
will/MD
oversee/VB
the/DT
company/NN
until/IN
a/DT
successor/NN
is/VBZ
named/VBN
./.
As/IN
expected/VBN
,/,
First/NNP
Interstate/NNP
Bancorp/NNP
reported/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
15.5/CD
million/CD
for/IN
its/PRP$
third/JJ
quarter/NN
because/IN
of/IN
hemorrhaging/NN
at/IN
its/PRP$
First/NNP
Interstate/NNP
Bank/NNP
of/IN
Arizona/NNP
unit/NN
./.
The/DT
Los/NNP
Angeles-based/JJ
bank/NN
holding/VBG
company/NN
disclosed/VBD
last/JJ
Friday/NNP
that/IN
it/PRP
had/VBD
taken/VBN
a/DT
huge/JJ
$/$
350/CD
million/CD
provision/NN
for/IN
loan/NN
losses/NNS
at/IN
the/DT
Arizona/NNP
bank/NN
,/,
the/DT
result/NN
of/IN
the/DT
state/NN
's/POS
worsening/VBG
real-estate/JJ
market/NN
./.
In/IN
yesterday/NN
's/POS
report/NN
,/,
First/NNP
Interstate/NNP
said/VBD
its/PRP$
bank/NN
in/IN
Texas/NNP
also/RB
reported/VBD
a/DT
loss/NN
of/IN
$/$
23.5/CD
million/CD
for/IN
the/DT
quarter/NN
./.
But/CC
it/PRP
said/VBD
that/IN
its/PRP$
consumer/NN
banks/NNS
in/IN
Oregon/NNP
,/,
California/NNP
,/,
Nevada/NNP
and/CC
Washington/NNP
performed/VBD
well/RB
during/IN
the/DT
quarter/NN
and/CC
that/IN
nonperforming/JJ
assets/NNS
at/IN
these/DT
banks/NNS
declined/VBD
by/IN
14/CD
%/NN
over/IN
the/DT
year-ago/JJ
period/NN
./.
Private-sector/JJ
union/NN
contracts/NNS
signed/VBN
in/IN
the/DT
third/JJ
quarter/NN
granted/VBD
slightly/RB
lower/JJR
wage/NN
increases/NNS
than/IN
those/DT
signed/VBN
in/IN
the/DT
second/JJ
quarter/NN
,/,
but/CC
wage/NN
increases/NNS
still/RB
are/VBP
running/VBG
above/IN
last/JJ
year/NN
's/POS
levels/NNS
./.
The/DT
Labor/NNP
Department/NNP
said/VBD
wage/NN
settlements/NNS
in/IN
the/DT
third/JJ
quarter/NN
called/VBD
for/IN
average/JJ
annual/JJ
wage/NN
increases/NNS
of/IN
3.6/CD
%/NN
in/IN
the/DT
first/JJ
year/NN
and/CC
3.0/CD
%/NN
over/IN
the/DT
life/NN
of/IN
the/DT
contracts/NNS
./.
The/DT
last/JJ
time/NN
parties/NNS
to/TO
these/DT
settlements/NNS
negotiated/VBD
wage/NN
increases/NNS
,/,
mostly/RB
in/IN
1986/CD
or/CC
1987/CD
,/,
wages/NNS
increased/VBD
an/DT
average/NN
of/IN
2.4/CD
%/NN
a/DT
year/NN
over/IN
the/DT
life/NN
of/IN
the/DT
contracts/NNS
./.
If/IN
this/DT
pattern/NN
continues/VBZ
,/,
the/DT
Labor/NNP
Department/NNP
said/VBD
,/,
1989/CD
will/MD
be/VB
the/DT
first/JJ
year/NN
that/IN
the/DT
measure/NN
has/VBZ
shown/VBN
an/DT
increase/NN
since/IN
1981/CD
when/WRB
the/DT
department/NN
started/VBD
comparing/VBG
expiring/VBG
contracts/NNS
with/IN
those/DT
that/WDT
replaced/VBD
them/PRP
./.
This/DT
reflects/VBZ
the/DT
restoration/NN
of/IN
wage/NN
cuts/NNS
in/IN
the/DT
steel/NN
and/CC
other/JJ
industries/NNS
as/RB
well/RB
as/IN
higher/JJR
wages/NNS
granted/VBN
nurses/NNS
who/WP
work/VBP
in/IN
health-care/NN
facilities/NNS
./.
Settlements/NNS
reached/VBD
in/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
1989/CD
called/VBD
for/IN
wage/NN
increases/NNS
averaging/VBG
3.7/CD
%/NN
in/IN
the/DT
first/JJ
contract/NN
year/NN
and/CC
3.1/CD
%/NN
annually/RB
over/IN
the/DT
life/NN
of/IN
the/DT
contracts/NNS
,/,
the/DT
department/NN
said/VBD
./.
For/IN
all/DT
of/IN
1988/CD
,/,
union/NN
contracts/NNS
provided/VBD
for/IN
2.5/CD
%/NN
wage/NN
increases/NNS
in/IN
the/DT
first/JJ
year/NN
and/CC
2.4/CD
%/NN
over/IN
the/DT
life/NN
of/IN
the/DT
contracts/NNS
./.
In/IN
the/DT
second/JJ
quarter/NN
,/,
contracts/NNS
called/VBD
for/IN
increases/NNS
of/IN
3.9/CD
%/NN
in/IN
the/DT
first/JJ
year/NN
and/CC
3.4/CD
%/NN
over/IN
the/DT
life/NN
of/IN
the/DT
contracts/NNS
./.
The/DT
figures/NNS
exclude/VBP
lump-sum/JJ
payments/NNS
and/CC
cost-of-living/JJ
adjustments/NNS
,/,
so/IN
the/DT
actual/JJ
wage/NN
increases/NNS
may/MD
have/VB
been/VBN
bigger/JJR
./.
About/RB
35/CD
%/NN
of/IN
the/DT
workers/NNS
covered/VBN
by/IN
contracts/NNS
signed/VBN
in/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
year/NN
get/VBP
lump-sum/JJ
payments/NNS
;/:
about/RB
15/CD
%/NN
are/VBP
covered/VBN
by/IN
cost-of-living/JJ
clauses/NNS
./.
Unions/NNS
covered/VBN
by/IN
one/CD
or/CC
other/JJ
provisions/NNS
generally/RB
settled/VBN
for/IN
lower/JJR
percentage/NN
wage/NN
increases/NNS
./.
The/DT
Labor/NNP
Department/NNP
said/VBD
wage/NN
increases/NNS
in/IN
manufacturing/NN
industries/NNS
continue/VBP
to/TO
be/VB
smaller/JJR
than/IN
those/DT
in/IN
other/JJ
industries/NNS
./.
For/IN
all/DT
six/CD
million/CD
workers/NNS
under/IN
major/JJ
collective/JJ
bargaining/NN
agreements/NNS
,/,
regardless/RB
of/IN
when/WRB
they/PRP
were/VBD
signed/VBN
,/,
wage/NN
increases/NNS
in/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
1989/CD
averaged/VBD
2.5/CD
%/NN
--/:
including/VBG
cost-of-living/JJ
adjustments/NNS
./.
An/DT
enormous/JJ
turtle/NN
has/VBZ
succeeded/VBN
where/WRB
the/DT
government/NN
has/VBZ
failed/VBN
:/:
He/PRP
has/VBZ
made/VBN
speaking/VBG
Filipino/NNP
respectable/JJ
./.
The/DT
6/CD
1\/2-foot-tall/JJ
turtle/NN
,/,
Pong/NNP
Pagong/NNP
,/,
is/VBZ
a/DT
character/NN
who/WP
stars/VBZ
in/IN
the/DT
children/NNS
's/POS
television/NN
show/VB
``/``
Batibot/NNP
./.
''/''
He/PRP
speaks/VBZ
only/RB
in/IN
Filipino/NNP
./.
``/``
Batibot/NNP
,/,
''/''
which/WDT
started/VBD
in/IN
1983/CD
as/IN
a/DT
hybrid/NN
of/IN
the/DT
U.S./NNP
program/NN
``/``
Sesame/NNP
Street/NNP
,/,
''/''
has/VBZ
developed/VBN
into/IN
a/DT
distinctly/RB
Philippine/JJ
effort/NN
./.
Radio/NN
programs/NNS
and/CC
books/NNS
have/VBP
followed/VBN
the/DT
daily/JJ
television/NN
show/NN
./.
In/IN
the/DT
process/NN
,/,
``/``
Batibot/NNP
,/,
''/''
an/DT
archaic/JJ
Filipino/NNP
word/NN
meaning/NN
``/``
strong/JJ
''/''
or/CC
``/``
enduring/JJ
,/,
''/''
has/VBZ
become/VBN
a/DT
powerful/JJ
advocate/NN
of/IN
the/DT
use/NN
of/IN
the/DT
Filipino/NNP
language/NN
./.
``/``
It/PRP
impresses/VBZ
on/IN
ordinary/JJ
,/,
young/JJ
Filipinos/NNPS
that/IN
there/EX
's/VBZ
nothing/NN
to/TO
feel/VB
inferior/JJ
about/IN
in/IN
using/VBG
their/PRP$
own/JJ
language/NN
,/,
''/''
says/VBZ
Randy/NNP
David/NNP
,/,
a/DT
sociologist/NN
and/CC
host/NN
of/IN
a/DT
popular/JJ
television/NN
talk/NN
show/NN
./.
``/``
When/WRB
we/PRP
started/VBD
the/DT
program/NN
six/CD
years/NNS
ago/RB
,/,
the/DT
use/NN
of/IN
Filipino/NNP
was/VBD
deemed/VBN
unwise/JJ
by/IN
the/DT
predominantly/RB
middle/JJ
class/NN
,/,
''/''
says/VBZ
Lydia/NNP
Brown/NNP
,/,
the/DT
program/NN
's/POS
creator/NN
./.
Now/RB
,/,
she/PRP
says/VBZ
,/,
``/``
it/PRP
's/VBZ
no/RB
longer/RBR
an/DT
issue/NN
./.
''/''
The/DT
success/NN
of/IN
``/``
Batibot/NNP
''/''
stands/VBZ
in/IN
marked/JJ
contrast/NN
to/TO
many/JJ
academic/JJ
and/CC
government/NN
attempts/NNS
to/TO
promote/VB
Filipino/NNP
as/IN
a/DT
national/JJ
language/NN
./.
Filipino/NNP
--/:
once/RB
known/VBN
as/IN
Pilipino/NN
--/:
is/VBZ
predominantly/RB
Tagalog/NNP
,/,
the/DT
Malay-based/JJ
language/NN
spoken/VBN
in/IN
a/DT
part/NN
of/IN
the/DT
country/NN
's/POS
principal/JJ
island/NN
of/IN
Luzon/NNP
./.
Resistance/NN
to/TO
a/DT
national/JJ
language/NN
comes/VBZ
primarily/RB
from/IN
members/NNS
of/IN
the/DT
country/NN
's/POS
elite/NNS
,/,
who/WP
generally/RB
prefer/VBP
English/NNP
./.
But/CC
while/IN
better-off/JJ
Filipinos/NNS
are/VBP
quick/JJ
to/TO
cite/VB
the/DT
logic/NN
in/IN
using/VBG
a/DT
language/NN
as/RB
widespread/JJ
as/IN
English/NNP
,/,
they/PRP
are/VBP
often/RB
slow/JJ
to/TO
reveal/VB
that/IN
they/PRP
are/VBP
prejudiced/VBN
against/IN
Filipino/NNP
,/,
say/VBP
advocates/NNS
of/IN
the/DT
native/JJ
language/NN
./.
``/``
For/IN
the/DT
middle/JJ
and/CC
upper-middle/JJ
class/NN
Filipino/NNP
Bien/NNP
Lumbera/NNP
,/,
a/DT
Philippine-studies/NN
professor/NN
at/IN
Quezon/NNP
City/NNP
's/POS
University/NNP
of/IN
the/DT
Philippines/NNP
./.
There/EX
's/VBZ
also/RB
resentment/NN
./.
Other/JJ
opponents/NNS
of/IN
Filipino/NNP
come/VBP
from/IN
non-Tagalog/JJ
regions/NNS
./.
They/PRP
argue/VBP
that/IN
their/PRP$
own/JJ
languages/NNS
should/MD
have/VB
equal/JJ
weight/NN
,/,
although/IN
recent/JJ
surveys/NNS
indicate/VBP
that/IN
the/DT
majority/NN
of/IN
the/DT
country/NN
's/POS
population/NN
understands/VBZ
Filipino/NNP
more/RBR
than/IN
any/DT
other/JJ
language/NN
./.
There/EX
are/VBP
seven/CD
major/JJ
languages/NNS
and/CC
more/JJR
than/IN
70/CD
dialects/NNS
in/IN
the/DT
country/NN
./.
What/WP
tongue/NN
to/TO
speak/VB
is/VBZ
an/DT
emotional/JJ
mine/NN
field/NN
in/IN
the/DT
Philippines/NNPS
./.
It/PRP
is/VBZ
entrenched/VBN
in/IN
the/DT
country/NN
's/POS
colonial/JJ
bonds/NNS
to/TO
the/DT
U.S./NNP
,/,
in/IN
Philippine/JJ
class/NN
structure/NN
,/,
in/IN
the/DT
regional/JJ
loyalties/NNS
of/IN
its/PRP$
people/NNS
and/CC
in/IN
its/PRP$
island/NN
geography/NN
./.
As/IN
they/PRP
did/VBD
when/WRB
the/DT
Philippines/NNP
was/VBD
a/DT
colony/NN
of/IN
the/DT
U.S./NNP
,/,
teachers/NNS
for/IN
the/DT
most/JJS
part/NN
teach/VBP
in/IN
English/NNP
,/,
even/RB
though/IN
it/PRP
is/VBZ
a/DT
foreign/JJ
language/NN
for/IN
most/JJS
Philippine/JJ
children/NNS
./.
As/IN
a/DT
result/NN
,/,
they/PRP
often/RB
speak/VBP
one/CD
language/NN
at/IN
home/NN
,/,
another/DT
at/IN
school/NN
./.
Mrs./NNP
Brown/NNP
calls/VBZ
the/DT
modern-day/JJ
cultural/JJ
ambivalence/NN
to/TO
Filipino/NNP
a/DT
``/``
language/NN
schizophrenia/NN
./.
''/''
The/DT
issue/NN
has/VBZ
been/VBN
simmering/VBG
for/IN
years/NNS
./.
It/PRP
does/VBZ
n't/RB
take/VB
much/JJ
to/TO
provoke/VB
an/DT
intense/JJ
debate/NN
./.
When/WRB
President/NNP
Corazon/NNP
Aquino/NNP
,/,
whose/WP$
command/NN
of/IN
Filipino/NNP
is/VBZ
spotty/JJ
,/,
announced/VBN
last/JJ
year/NN
that/IN
the/DT
language/NN
would/MD
be/VB
used/VBN
in/IN
official/JJ
communications/NNS
,/,
there/EX
was/VBD
an/DT
uproar/NN
from/IN
many/JJ
legislators/NNS
,/,
who/WP
continue/VBP
to/TO
conduct/VB
debates/NNS
mostly/RB
in/IN
English/NNP
./.
But/CC
many/JJ
proponents/NNS
of/IN
Filipino/NNP
see/VBP
resistance/NN
to/TO
the/DT
language/NN
finally/RB
crumbling/VBG
./.
They/PRP
believe/VBP
the/DT
media/NNS
,/,
including/VBG
``/``
Batibot/NNP
,/,
''/''
have/VBP
played/VBN
a/DT
crucial/JJ
role/NN
./.
According/VBG
to/TO
chief/JJ
scriptwriter/NN
Rene/NNP
Villanueva/NNP
,/,
``/``
Batibot/NNP
''/''
does/VBZ
n't/RB
set/VB
out/RP
to/TO
advance/VB
the/DT
cause/NN
of/IN
Filipino/NNP
./.
``/``
It/PRP
's/VBZ
not/RB
as/IN
if/IN
we/PRP
're/VBP
teaching/VBG
language/NN
per/FW
se/FW
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
We/PRP
're/VBP
just/RB
using/VBG
it/PRP
./.
''/''
These/DT
days/NNS
,/,
``/``
Batibot/NNP
''/''
is/VBZ
produced/VBN
in/IN
a/DT
converted/JJ
lumberyard/NN
on/IN
a/DT
shoestring/NN
budget/NN
of/IN
$/$
3,000/CD
a/DT
one-hour/JJ
segment/NN
./.
It/PRP
is/VBZ
shown/VBN
weekdays/NNS
on/IN
two/CD
of/IN
the/DT
country/NN
's/POS
five/CD
networks/NNS
./.
With/IN
an/DT
audience/NN
totaling/VBG
more/JJR
than/IN
400,000/CD
,/,
``/``
Batibot/NNP
''/''
consistently/RB
ranks/VBZ
in/IN
the/DT
country/NN
's/POS
top-four/JJ
most-watched/JJ
daytime/JJ
programs/NNS
./.
But/CC
advertising/NN
revenue/NN
is/VBZ
inadequate/JJ
./.
Periodically/RB
,/,
there/EX
are/VBP
threats/NNS
that/IN
the/DT
program/NN
will/MD
fold/VB
./.
``/``
Batibot/NNP
''/''
lacks/VBZ
the/DT
polish/NN
of/IN
``/``
Sesame/NNP
Street/NNP
./.
''/''
Sound/JJ
stages/NNS
echo/VBP
./.
Acting/NN
sometimes/RB
falls/VBZ
flat/JJ
./.
There/EX
are/VBP
only/RB
two/CD
large/JJ
puppets/NNS
in/IN
the/DT
program/NN
:/:
Pong/NNP
Pagong/NNP
and/CC
a/DT
monkey/NN
named/VBN
Kiko/NNP
Matsing/NNP
./.
But/CC
the/DT
production/NN
is/VBZ
the/DT
equal/JJ
of/IN
any/DT
local/JJ
program/NN
./.
And/CC
the/DT
show/NN
's/POS
creativity/NN
makes/VBZ
up/RP
for/IN
any/DT
technological/JJ
deficiencies/NNS
./.
The/DT
program/NN
is/VBZ
n't/RB
afraid/JJ
to/TO
tackle/VB
controversial/JJ
topics/NNS
such/JJ
as/IN
nuclear/JJ
weapons/NNS
and/CC
the/DT
environment/NN
./.
Not/RB
that/IN
the/DT
language/NN
war/NN
is/VBZ
won/VBN
,/,
even/RB
on/IN
``/``
Batibot/NNP
./.
''/''
During/IN
one/CD
recent/JJ
episode/NN
,/,
all/PDT
the/DT
advertisements/NNS
were/VBD
in/IN
English/NNP
./.
CMS/NNP
ENERGY/NNP
Corp./NNP
said/VBD
management/NN
would/MD
recommend/VB
to/TO
its/PRP$
board/NN
today/NN
that/IN
its/PRP$
common/JJ
stock/NN
dividend/NN
be/VB
reinstated/VBN
at/IN
a/DT
``/``
modest/JJ
level/NN
''/''
later/RB
this/DT
year/NN
./.
The/DT
Dearborn/NNP
,/,
Mich./NNP
,/,
energy/NN
company/NN
stopped/VBD
paying/VBG
a/DT
dividend/NN
in/IN
the/DT
third/JJ
quarter/NN
of/IN
1984/CD
because/IN
of/IN
troubles/NNS
at/IN
its/PRP$
Midland/NNP
nuclear/JJ
plant/NN
./.
In/IN
addition/NN
,/,
CMS/NNP
reported/VBD
third-quarter/JJ
net/NN
of/IN
$/$
68.2/CD
million/CD
,/,
or/CC
83/CD
cents/NNS
a/DT
share/NN
,/,
up/RB
from/IN
$/$
66.8/CD
million/CD
,/,
or/CC
81/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
ago/RB
./.
HEALTHDYNE/NNP
Inc./NNP
,/,
Atlanta/NNP
,/,
said/VBD
its/PRP$
subsidiary/NN
,/,
Home/NNP
Nutritional/NNP
Services/NNP
Inc./NNP
,/,
registered/VBD
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
an/DT
initial/JJ
public/JJ
offering/NN
of/IN
four/CD
million/CD
shares/NNS
of/IN
common/JJ
./.
The/DT
in-home/JJ
health/NN
care/NN
services/NNS
provider/NN
said/VBD
it/PRP
will/MD
sell/VB
1.8/CD
million/CD
of/IN
the/DT
new/JJ
shares/NNS
,/,
while/IN
Home/NNP
Nutritional/NNP
Services/NNP
will/MD
sell/VB
the/DT
remaining/VBG
2.2/CD
million/CD
./.
The/DT
company/NN
estimates/VBZ
the/DT
offering/NN
price/NN
at/IN
between/IN
$/$
14/CD
and/CC
$/$
16/CD
a/DT
share/NN
./.
The/DT
company/NN
said/VBD
it/PRP
expects/VBZ
to/TO
use/VB
the/DT
proceeds/NNS
to/TO
repay/VB
certain/JJ
bank/NN
debt/NN
and/CC
for/IN
general/JJ
corporate/JJ
purposes/NNS
,/,
including/VBG
establishing/VBG
new/JJ
operating/NN
centers/NNS
and/CC
possible/JJ
acquisitions/NNS
./.
Home/NNP
Nutritional/NNP
currently/RB
has/VBZ
10/CD
million/CD
shares/NNS
outstanding/JJ
./.
It/PRP
will/MD
have/VB
11.8/CD
million/CD
shares/NNS
outstanding/JJ
after/IN
the/DT
offering/NN
,/,
with/IN
Healthdyne/NNP
owning/VBG
about/RB
65/CD
%/NN
of/IN
the/DT
total/NN
./.
Black/NNP
&/CC
Decker/NNP
Corp./NNP
said/VBD
it/PRP
agreed/VBD
to/TO
sell/VB
its/PRP$
Bostik/NNP
chemical/JJ
adhesives/NNS
unit/NN
to/TO
Orkem/NNP
S.A./NNP
,/,
a/DT
French/JJ
chemical/NN
company/NN
,/,
for/IN
$/$
345/CD
million/CD
./.
Bostik/NNP
is/VBZ
the/DT
first/JJ
Emhart/NNP
Corp./NNP
unit/NN
to/TO
be/VB
sold/VBN
as/IN
part/NN
of/IN
the/DT
power-tool/NN
manufacturer/NN
's/POS
effort/NN
to/TO
reduce/VB
debt/NN
and/CC
consolidate/VB
operations/NNS
after/IN
it/PRP
acquired/VBD
Emhart/NNP
earlier/RBR
this/DT
year/NN
./.
Black/NNP
&/CC
Decker/NNP
said/VBD
it/PRP
plans/VBZ
to/TO
put/VB
other/JJ
Emhart/NNP
units/NNS
on/IN
the/DT
block/NN
in/IN
the/DT
future/NN
,/,
with/IN
the/DT
goal/NN
of/IN
raising/VBG
$/$
1/CD
billion/CD
in/IN
net/JJ
proceeds/NNS
./.
Black/NNP
&/CC
Decker/NNP
rescued/VBD
Emhart/NNP
from/IN
the/DT
takeover/NN
bid/NN
of/IN
Topper/NNP
Limited/NNP
Partnership/NNP
last/JJ
March/NNP
by/IN
agreeing/VBG
to/TO
acquire/VB
the/DT
maker/NN
of/IN
door/NN
locks/NNS
and/CC
gardening/NN
tools/NNS
for/IN
about/RB
$/$
2.8/CD
billion/CD
./.
The/DT
move/NN
significantly/RB
expanded/VBD
Black/NNP
&/CC
Decker/NNP
's/POS
product/NN
line/NN
,/,
but/CC
also/RB
significantly/RB
increased/VBD
its/PRP$
debt/NN
load/NN
./.
The/DT
acquisition/NN
boosted/VBD
Black/NNP
&/CC
Decker/NNP
's/POS
ratio/NN
of/IN
debt/NN
to/TO
total/JJ
capital/NN
to/TO
more/JJR
than/IN
80/CD
%/NN
./.
Company/NN
officials/NNS
have/VBP
said/VBN
they/PRP
plan/VBP
to/TO
reduce/VB
that/DT
ratio/NN
to/TO
less/JJR
than/IN
50/CD
%/NN
over/IN
the/DT
next/JJ
2/CD
1\/2/CD
years/NNS
./.
Earlier/RBR
this/DT
year/NN
,/,
Black/NNP
&/CC
Decker/NNP
put/VBD
three/CD
Emhart/NNP
businesses/NNS
on/IN
the/DT
auction/NN
block/NN
:/:
the/DT
information/NN
and/CC
electronics/NN
segment/NN
,/,
the/DT
Dynapert/NNP
electrical/JJ
assembly/NN
business/NN
and/CC
Mallory/NNP
Capacitors/NNP
./.
The/DT
three/CD
units/NNS
had/VBD
combined/JJ
1988/CD
sales/NNS
of/IN
about/RB
$/$
904/CD
million/CD
./.
The/DT
three/CD
units/NNS
contributed/VBD
about/RB
a/DT
third/NN
of/IN
Emhart/NNP
's/POS
total/JJ
sales/NNS
./.
In/IN
addition/NN
,/,
Black/NNP
&/CC
Decker/NNP
had/VBD
said/VBN
it/PRP
would/MD
sell/VB
two/CD
other/JJ
undisclosed/JJ
Emhart/NNP
operations/NNS
if/IN
it/PRP
received/VBD
the/DT
right/JJ
price/NN
./.
Bostic/NNP
is/VBZ
one/CD
of/IN
the/DT
previously/RB
unnamed/JJ
units/NNS
,/,
and/CC
the/DT
first/JJ
of/IN
the/DT
five/CD
to/TO
be/VB
sold/VBN
./.
The/DT
company/NN
is/VBZ
still/RB
negotiating/VBG
the/DT
sales/NNS
of/IN
the/DT
other/JJ
four/CD
units/NNS
and/CC
expects/VBZ
to/TO
announce/VB
agreements/NNS
by/IN
the/DT
end/NN
of/IN
the/DT
year/NN
./.
The/DT
five/CD
units/NNS
generated/VBD
sales/NNS
of/IN
about/RB
$/$
1.3/CD
billion/CD
in/IN
1988/CD
,/,
almost/RB
half/NN
of/IN
Emhart/NNP
's/POS
$/$
2.3/CD
billion/CD
revenue/NN
./.
Bostic/NNP
posted/VBD
1988/CD
sales/NNS
of/IN
$/$
255/CD
million/CD
./.
``/``
Our/PRP$
divestiture/NN
program/NN
is/VBZ
on/IN
schedule/NN
,/,
and/CC
we/PRP
remain/VBP
confident/JJ
that/IN
we/PRP
will/MD
achieve/VB
our/PRP$
stated/JJ
goal/NN
of/IN
over/RB
$/$
1/CD
billion/CD
in/IN
net/JJ
proceeds/NNS
,/,
''/''
said/VBD
Nolan/NNP
D./NNP
Archibald/NNP
,/,
Black/NNP
&/CC
Decker/NNP
's/POS
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
in/IN
a/DT
statement/NN
./.
The/DT
sales/NNS
are/VBP
an/DT
attempt/NN
to/TO
quell/VB
investor/NN
concern/NN
about/IN
Black/NNP
&/CC
Decker/NNP
's/POS
increased/JJ
debt/NN
burden/NN
from/IN
the/DT
Emhart/NNP
purchase/NN
./.
The/DT
company/NN
's/POS
stock/NN
plunged/VBD
when/WRB
it/PRP
first/RB
announced/VBD
that/IN
it/PRP
planned/VBD
to/TO
acquire/VB
Emhart/NNP
./.
The/DT
company/NN
maintains/VBZ
that/IN
it/PRP
does/VBZ
n't/RB
expect/VB
Emhart/NNP
to/TO
contribute/VB
to/TO
earnings/NNS
for/IN
about/RB
another/DT
12/CD
months/NNS
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Black/NNP
&/CC
Decker/NNP
closed/VBD
at/IN
$/$
19.75/CD
yesterday/NN
,/,
down/RB
25/CD
cents/NNS
./.
The/DT
company/NN
did/VBD
n't/RB
announce/VB
the/DT
sale/NN
until/IN
after/IN
the/DT
close/NN
of/IN
the/DT
market/NN
./.
Dick/NNP
Darman/NNP
,/,
call/VB
your/PRP$
office/NN
./.
Embedded/VBN
in/IN
the/DT
``/``
budget/NN
''/''
being/VBG
concocted/VBN
by/IN
the/DT
House-Senate/NNP
conference/NN
committee/NN
is/VBZ
something/NN
that/WDT
looks/VBZ
,/,
smells/VBZ
and/CC
waddles/VBZ
like/IN
a/DT
duck/NN
./.
It/PRP
's/VBZ
a/DT
nuisance/JJ
tax/NN
on/IN
mergers/NNS
./.
Congress/NNP
has/VBZ
decided/VBN
to/TO
raise/VB
$/$
40/CD
million/CD
by/IN
charging/VBG
companies/NNS
$/$
20,000/CD
for/IN
the/DT
honor/NN
of/IN
filing/VBG
the/DT
required/JJ
papers/NNS
under/IN
the/DT
Hart-Scott-Rodino/NNP
law/NN
./.
Ever/RB
since/IN
the/DT
bad/JJ
days/NNS
of/IN
Big/JJ
is/VBZ
Bad/JJ
antitrust/JJ
enforcement/NN
,/,
this/DT
law/NN
has/VBZ
required/VBN
that/IN
anyone/NN
proposing/VBG
a/DT
merger/NN
must/MD
make/VB
a/DT
filing/NN
describing/VBG
the/DT
effects/NNS
on/IN
all/DT
relevant/JJ
markets/NNS
./.
The/DT
Hart-Scott/NNP
filing/NN
is/VBZ
then/RB
reviewed/VBN
and/CC
any/DT
antitrust/JJ
concerns/NNS
usually/RB
met/VBN
./.
Typically/RB
,/,
Hart-Scott/NNP
is/VBZ
used/VBN
now/RB
to/TO
give/VB
managers/NNS
of/IN
target/NN
firms/NNS
early/JJ
news/NN
of/IN
a/DT
bid/NN
and/CC
a/DT
chance/NN
to/TO
use/VB
regulatory/JJ
review/NN
as/IN
a/DT
delaying/NN|VBG
tactic/NN
./.
The/DT
$/$
20,000/CD
tax/NN
would/MD
be/VB
a/DT
small/JJ
cost/NN
in/IN
a/DT
multibillion-dollar/JJ
deal/NN
,/,
but/CC
a/DT
serious/JJ
drag/NN
on/IN
thousands/NNS
of/IN
small/JJ
,/,
friendly/JJ
deals/NNS
./.
One/CD
especially/RB
dangerous/JJ
aspect/NN
to/TO
the/DT
new/JJ
tax/NN
would/MD
be/VB
that/IN
the/DT
proceeds/NNS
will/MD
be/VB
used/VBN
to/TO
increase/VB
the/DT
budgets/NNS
of/IN
the/DT
antitrust/JJ
division/NN
at/IN
Justice/NNP
and/CC
the/DT
Federal/NNP
Trade/NNP
Commission/NNP
./.
This/DT
amounts/VBZ
to/TO
a/DT
bounty/NN
for/IN
regulators/NNS
--/:
the/DT
more/JJR
regulating/NN
the/DT
more/JJR
they/PRP
get/VBP
to/TO
keep/VB
./.
Also/RB
,/,
as/IN
former/JJ
Reagan/NNP
antitrust/JJ
chief/NN
Charles/NNP
Rule/NNP
has/VBZ
noted/VBN
,/,
this/DT
would/MD
``/``
establish/VB
the/DT
precedent/NN
that/IN
the/DT
government/NN
may/MD
charge/VB
parties/NNS
for/IN
the/DT
privilege/NN
of/IN
being/VBG
sued/VBN
regardless/RB
of/IN
whether/IN
the/DT
government/NN
prevails/VBZ
./.
''/''
Yet/RB
another/DT
opportunity/NN
for/IN
President/NNP
Bush/NNP
to/TO
respond/VB
,/,
``/``
Read/VB
my/PRP$
lips/NNS
./.
Line-item/JJ
veto/NN
./.
''/''
Michael/NNP
Grobstein/NNP
,/,
46/CD
years/NNS
old/JJ
,/,
was/VBD
named/VBN
vice/NN
chairman/NN
for/IN
planning/NN
,/,
marketing/NN
and/CC
industry/NN
services/NNS
,/,
a/DT
new/JJ
post/NN
./.
Mr./NNP
Grobstein/NNP
had/VBD
been/VBN
a/DT
vice/NN
chairman/NN
of/IN
Ernst/NNP
&/CC
Whinney/NNP
,/,
an/DT
accounting/NN
firm/NN
that/WDT
merged/VBD
with/IN
rival/NN
Arthur/NNP
Young/NNP
in/IN
July/NNP
to/TO
form/VB
Ernst/NNP
&/CC
Young/NNP
,/,
a/DT
major/JJ
accounting/NN
,/,
tax/NN
and/CC
management/NN
consulting/NN
firm/NN
./.
Mr./NNP
Grobstein/NNP
's/POS
appointment/NN
formalizes/VBZ
a/DT
role/NN
he/PRP
has/VBZ
been/VBN
performing/VBG
since/IN
the/DT
merger/NN
,/,
a/DT
spokeswoman/NN
said/VBD
./.
Cie./NNP
de/NNP
Navigation/NNP
Mixte/NNP
Chairman/NNP
Marc/NNP
Fournier/NNP
said/VBD
his/PRP$
board/NN
unanimously/RB
rejected/VBD
as/IN
too/RB
low/JJ
the/DT
$/$
1.77/CD
billion/CD
bid/NN
by/IN
Cie./NNP
Financiere/NNP
de/NNP
Paribas/NNP
to/TO
bring/VB
its/PRP$
stake/NN
in/IN
Navigation/NNP
Mixte/NNP
to/TO
66.7/CD
%/NN
./.
At/IN
a/DT
news/NN
conference/NN
,/,
Mr./NNP
Fournier/NNP
accused/VBD
Paribas/NNP
of/IN
planning/VBG
to/TO
pay/VB
for/IN
the/DT
takeover/NN
by/IN
selling/VBG
parts/NNS
of/IN
the/DT
company/NN
,/,
whose/WP$
interests/NNS
include/VBP
insurance/NN
,/,
banking/NN
,/,
tuna/NN
canning/NN
,/,
sugar/NN
and/CC
orange/NN
juice/NN
./.
The/DT
chairman/NN
said/VBD
his/PRP$
board/NN
members/NNS
,/,
including/VBG
representatives/NNS
of/IN
West/JJ
German/JJ
insurance/NN
giant/NN
Allianz/NNP
AG/NNP
and/CC
French/JJ
banks/NNS
Credit/NNP
Lyonnais/NNP
and/CC
Societe/NNP
Generale/NNP
,/,
hold/VBP
nearly/RB
50/CD
%/NN
of/IN
Navigation/NNP
Mixte/NNP
's/POS
capital/NN
./.
Mr./NNP
Fournier/NNP
said/VBD
that/IN
as/IN
Navigation/NNP
Mixte/NNP
chairman/NN
,/,
he/PRP
is/VBZ
prohibited/VBN
by/IN
takeover/NN
regulations/NNS
from/IN
organizing/VBG
his/PRP$
own/JJ
defense/NN
or/CC
doing/VBG
anything/NN
besides/IN
managing/VBG
current/JJ
company/NN
business/NN
./.
But/CC
sources/NNS
said/VBD
he/PRP
will/MD
be/VB
urging/VBG
his/PRP$
allies/NNS
to/TO
boost/VB
their/PRP$
stakes/NNS
in/IN
Navigation/NNP
Mixte/NNP
,/,
which/WDT
is/VBZ
being/VBG
traded/VBN
in/IN
London/NNP
and/CC
is/VBZ
to/TO
resume/VB
trading/VBG
in/IN
Paris/NNP
Tuesday/NNP
./.
At/IN
the/DT
same/JJ
time/NN
,/,
he/PRP
is/VBZ
expected/VBN
to/TO
seek/VB
legal/JJ
and/CC
regulatory/JJ
means/NNS
of/IN
blocking/VBG
or/CC
delaying/VBG
Paribas/NNP
's/POS
bid/NN
./.
For/IN
the/DT
moment/NN
,/,
the/DT
sources/NNS
said/VBD
,/,
he/PRP
has/VBZ
decided/VBN
against/IN
seeking/VBG
a/DT
white/JJ
knight/NN
or/CC
organizing/VBG
a/DT
counterbid/NN
for/IN
Paribas/NNP
./.
Mr./NNP
Fournier/NNP
said/VBD
Navigation/NNP
Mixte/NNP
's/POS
1989/CD
unconsolidated/JJ
,/,
or/CC
parent-company/NN
,/,
profit/NN
is/VBZ
likely/JJ
to/TO
be/VB
4.7/CD
billion/CD
francs/NNS
$/$
754.4/CD
million/CD
633.8/CD
million/CD
francs/NNS
last/JJ
year/NN
./.
That/DT
is/VBZ
due/RB
mostly/RB
to/TO
payments/NNS
from/IN
Allianz/NNP
for/IN
most/JJS
of/IN
the/DT
50/CD
%/NN
stake/NN
it/PRP
has/VBZ
agreed/VBN
to/TO
acquire/VB
in/IN
Navigation/NNP
Mixte/NNP
's/POS
insurance/NN
business/NN
./.
Mr./NNP
Fournier/NNP
said/VBD
the/DT
exceptional/JJ
gain/NN
would/MD
mean/VB
nearly/RB
twice/RB
as/RB
high/JJ
a/DT
dividend/NN
this/DT
year/NN
as/IN
last/JJ
./.
If/IN
holders/NNS
avoid/VBP
tendering/VBG
to/TO
Paribas/NNP
,/,
he/PRP
added/VBD
,/,
they/PRP
can/MD
expect/VB
strong/JJ
dividends/NNS
again/RB
next/JJ
year/NN
./.
Analysts/NNS
noted/VBD
that/IN
over/IN
the/DT
past/JJ
20/CD
years/NNS
,/,
Mr./NNP
Fournier/NNP
has/VBZ
built/VBN
his/PRP$
company/NN
through/IN
astute/JJ
stock-market/NN
activity/NN
and/CC
has/VBZ
warded/VBN
off/RP
at/IN
least/JJS
three/CD
takeover/NN
attempts/NNS
./.
This/DT
time/NN
,/,
however/RB
,/,
some/DT
analysts/NNS
think/VBP
he/PRP
could/MD
face/VB
a/DT
real/JJ
battle/NN
./.
``/``
Without/IN
some/DT
unexpected/JJ
``/``
coup/FW
de/FW
theatre/FW
''/''
,/,
I/PRP
do/VBP
n't/RB
see/VB
what/WP
will/MD
block/VB
the/DT
Paribas/NNP
bid/NN
,/,
''/''
said/VBD
Philippe/NNP
de/NNP
Cholet/NNP
,/,
analyst/NN
at/IN
the/DT
brokerage/NN
Cholet-Dupont/NNP
&/CC
Cie/NNP
./.
Mr./NNP
de/NNP
Cholet/NNP
said/VBD
Mr./NNP
Fournier/NNP
's/POS
biggest/JJS
hope/NN
was/VBD
to/TO
somehow/RB
persuade/VB
regulatory/JJ
authorities/NNS
to/TO
block/VB
the/DT
bid/NN
./.
Paribas/NNP
still/RB
needs/VBZ
the/DT
go-ahead/NN
from/IN
the/DT
Commission/FW
des/FW
Operations/FW
de/FW
Bourse/FW
,/,
a/DT
government/NN
regulatory/JJ
agency/NN
,/,
but/CC
analysts/NNS
said/VBD
that/DT
is/VBZ
considered/VBN
likely/RB
./.
Mr./NNP
Fournier/NNP
also/RB
noted/VBD
that/IN
Navigation/NNP
Mixte/NNP
joined/VBD
Paribas/NNP
's/POS
core/NN
of/IN
shareholders/NNS
when/WRB
Paribas/NNP
was/VBD
denationalized/VBN
in/IN
1987/CD
,/,
and/CC
said/VBD
it/PRP
now/RB
holds/VBZ
just/RB
under/IN
5/CD
%/NN
of/IN
Paribas/NNP
's/POS
shares/NNS
./.
Once/RB
he/PRP
realized/VBD
that/IN
Paribas/NNP
's/POS
intentions/NNS
were/VBD
n't/RB
friendly/JJ
,/,
he/PRP
said/VBD
,/,
but/CC
before/IN
the/DT
bid/NN
was/VBD
launched/VBN
,/,
he/PRP
sought/VBD
approval/NN
to/TO
boost/VB
his/PRP$
Paribas/NNP
stake/NN
above/IN
10/CD
%/NN
./.
The/DT
petition/NN
is/VBZ
still/RB
pending/JJ
,/,
but/CC
Mr./NNP
Fournier/NNP
downplayed/VBD
the/DT
likelihood/NN
of/IN
his/PRP$
organizing/VBG
a/DT
takeover/NN
bid/NN
of/IN
his/PRP$
own/JJ
for/IN
the/DT
much-larger/JJ
Paribas/NNP
./.
One/CD
big/JJ
question/NN
now/RB
is/VBZ
the/DT
likely/JJ
role/NN
of/IN
Mr./NNP
Fournier/NNP
's/POS
allies/NNS
./.
Mr./NNP
Fournier/NNP
said/VBD
the/DT
large/JJ
institutions/NNS
that/WDT
hold/VBP
nearly/RB
50/CD
%/NN
of/IN
Navigation/NNP
Mixte/NNP
's/POS
capital/NN
all/RB
strongly/RB
support/VB
him/PRP
,/,
but/CC
some/DT
analysts/NNS
said/VBD
they/PRP
are/VBP
n't/RB
so/RB
sure/JJ
./.
Allianz/NNP
,/,
for/IN
example/NN
,/,
has/VBZ
said/VBD
in/IN
official/JJ
comments/NNS
so/RB
far/RB
that/IN
it/PRP
will/MD
remain/VB
neutral/JJ
./.
Paribas/NNP
is/VBZ
Allianz/NNP
's/POS
lead/JJ
French/JJ
bank/NN
./.
Paribas/NNP
said/VBD
Monday/NNP
that/IN
it/PRP
intends/VBZ
to/TO
bid/VB
to/TO
boost/VB
its/PRP$
stake/NN
in/IN
Navigation/NNP
Mixte/NNP
to/TO
66.7/CD
%/NN
,/,
from/IN
the/DT
18.7/CD
%/NN
it/PRP
already/RB
owns/VBZ
./.
The/DT
purchase/NN
of/IN
the/DT
additional/JJ
48/CD
%/NN
stake/NN
is/VBZ
expected/VBN
to/TO
cost/VB
more/JJR
than/IN
11/CD
billion/CD
francs/NNS
$/$
1.77/CD
billion/CD
Paribas/NNP
says/VBZ
it/PRP
will/MD
offer/VB
1,850/CD
francs/NNS
$/$
296.95/CD
each/DT
for/IN
Navigation/NNP
Mixte/NNP
shares/NNS
that/WDT
enjoy/VBP
full/JJ
dividend/NN
rights/NNS
,/,
and/CC
1,800/CD
francs/NNS
each/DT
for/IN
a/DT
block/NN
of/IN
shares/NNS
issued/VBN
July/NNP
1/CD
,/,
which/WDT
will/MD
receive/VB
only/RB
partial/JJ
dividends/NNS
this/DT
year/NN
./.
Alternatively/RB
,/,
it/PRP
is/VBZ
to/TO
offer/VB
three/CD
Paribas/NNP
shares/NNS
for/IN
one/CD
Navigation/NNP
Mixte/NNP
share/NN
./.
The/DT
Paribas/NNP
offer/NN
values/VBZ
Navigation/NNP
Mixte/NNP
at/IN
about/RB
23/CD
billion/CD
francs/NNS
,/,
depending/VBG
on/IN
how/WRB
many/JJ
of/IN
Navigation/NNP
Mixte/NNP
's/POS
warrants/NNS
are/VBP
converted/VBN
into/IN
shares/NNS
during/IN
the/DT
takeover/NN
battle/NN
./.
BLOCKBUSTER/NNP
ENTERTAINMENT/NNP
CORP./NNP
said/VBD
it/PRP
raised/VBD
$/$
92/CD
million/CD
from/IN
an/DT
offering/NN
of/IN
liquid/JJ
yield/NN
option/NN
notes/NNS
./.
The/DT
gross/JJ
proceeds/NNS
from/IN
the/DT
sale/NN
of/IN
the/DT
notes/NNS
,/,
which/WDT
will/MD
be/VB
due/JJ
on/IN
Nov./NNP
1/CD
,/,
2004/CD
,/,
will/MD
be/VB
used/VBN
to/TO
reduce/VB
existing/VBG
debt/NN
and/CC
for/IN
general/JJ
corporate/JJ
purposes/NNS
,/,
the/DT
company/NN
said/VBD
./.
The/DT
debt/NN
reduction/NN
is/VBZ
expected/VBN
to/TO
save/VB
the/DT
Fort/NNP
Lauderdale/NNP
,/,
Fla./NNP
home/NN
video/NN
concern/NN
about/RB
$/$
2/CD
million/CD
a/DT
year/NN
in/IN
interest/NN
expense/NN
./.
The/DT
zero-coupon/JJ
subordinated/JJ
notes/NNS
have/VBP
no/DT
periodic/JJ
interest/NN
payments/NNS
./.
Each/DT
note/NN
is/VBZ
being/VBG
offered/VBN
at/IN
$/$
308.32/CD
per/IN
$/$
1,000/CD
principal/NN|JJ
amount/NN
at/IN
maturity/NN
,/,
representing/VBG
an/DT
8/CD
%/NN
yield/NN
to/TO
maturity/NN
./.
In/IN
addition/NN
,/,
each/DT
note/NN
can/MD
be/VB
converted/VBN
into/IN
Blockbuster/NNP
Entertainment/NNP
common/JJ
stock/NN
at/IN
a/DT
rate/NN
of/IN
13.851/CD
shares/NNS
per/IN
note/NN
./.
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
Inc./NNP
is/VBZ
the/DT
sole/JJ
underwriter/NN
for/IN
the/DT
offering/NN
./.
The/DT
notes/NNS
will/MD
have/VB
a/DT
principal/NN|JJ
amount/NN
of/IN
$/$
300/CD
million/CD
at/IN
maturity/NN
./.
Blockbuster/NNP
shares/NNS
closed/VBD
yesterday/NN
at/IN
$/$
18.75/CD
,/,
down/IN
$/$
1.125/CD
,/,
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
trading/NN
./.
The/DT
1986/CD
Tax/NNP
Reform/NNP
Act/NNP
has/VBZ
nearly/RB
eliminated/VBN
the/DT
number/NN
of/IN
large/JJ
,/,
profitable/JJ
corporations/NNS
that/WDT
do/VBP
n't/RB
pay/VB
federal/JJ
income/NN
tax/NN
,/,
according/VBG
to/TO
Citizens/NNP
for/IN
Tax/NNP
Justice/NNP
,/,
a/DT
nonprofit/JJ
,/,
labor-funded/JJ
research/NN
and/CC
lobbying/NN
group/NN
./.
In/IN
a/DT
study/NN
of/IN
250/CD
of/IN
the/DT
nation/NN
's/POS
richest/JJS
companies/NNS
,/,
the/DT
group/NN
found/VBD
that/IN
only/RB
seven/CD
managed/VBD
to/TO
avoid/VB
paying/VBG
federal/JJ
income/NN
taxes/NNS
last/JJ
year/NN
compared/VBN
with/IN
40/CD
in/IN
1986/CD
,/,
the/DT
last/JJ
year/NN
the/DT
old/JJ
tax/NN
rules/NNS
were/VBD
in/IN
effect/NN
,/,
and/CC
16/CD
in/IN
1987/CD
,/,
when/WRB
some/DT
of/IN
the/DT
new/JJ
tax/NN
provisions/NNS
went/VBD
into/IN
effect/NN
./.
Moreover/RB
,/,
41/CD
companies/NNS
that/WDT
paid/VBD
no/DT
federal/JJ
income/NN
tax/NN
from/IN
1981/CD
through/IN
1985/CD
--/:
despite/IN
billions/NNS
of/IN
dollars/NNS
of/IN
profits/NNS
--/:
ended/VBD
up/RP
paying/VBG
an/DT
average/NN
of/IN
27.9/CD
%/NN
of/IN
their/PRP$
income/NN
in/IN
federal/JJ
taxes/NNS
in/IN
1988/CD
./.
The/DT
report/NN
,/,
released/VBN
yesterday/NN
,/,
comes/VBZ
as/IN
Congress/NNP
is/VBZ
considering/VBG
a/DT
number/NN
of/IN
special/JJ
tax/NN
breaks/NNS
only/RB
three/CD
years/NNS
after/IN
the/DT
sweeping/JJ
tax-revision/JJ
legislation/NN
abolished/VBD
or/CC
curtailed/VBD
many/JJ
loopholes/NNS
./.
In/IN
the/DT
corporate/JJ
realm/NN
,/,
the/DT
1986/CD
law/NN
abolished/VBD
the/DT
investment-tax/JJ
credit/NN
,/,
scaled/VBD
back/RP
use/NN
of/IN
an/DT
accounting/NN
method/NN
that/WDT
allowed/VBD
large/JJ
contractors/NNS
to/TO
defer/VB
taxes/NNS
until/IN
a/DT
project/NN
was/VBD
completed/VBN
and/CC
strengthened/VBD
the/DT
so-called/JJ
alternative/JJ
minimum/JJ
tax/NN
,/,
a/DT
levy/NN
to/TO
ensure/VB
all/DT
money-making/JJ
businesses/NNS
pay/VBP
some/DT
federal/JJ
tax/NN
./.
The/DT
combination/NN
of/IN
lower/JJR
rates/NNS
and/CC
fewer/JJR
loopholes/NNS
has/VBZ
meant/VBN
that/IN
the/DT
so-called/JJ
average/JJ
effective/JJ
tax/NN
rate/NN
--/:
the/DT
rate/NN
actually/RB
paid/VBN
--/:
of/IN
the/DT
250/CD
corporations/NNS
surveyed/VBN
reached/VBN
26.5/CD
%/NN
in/IN
1988/CD
,/,
compared/VBN
with/IN
14.3/CD
%/NN
in/IN
the/DT
years/NNS
from/IN
1981/CD
through/IN
1985/CD
,/,
according/VBG
to/TO
the/DT
study/NN
./.
In/IN
addition/NN
,/,
corporations/NNS
are/VBP
now/RB
shouldering/VBG
a/DT
bigger/JJR
share/NN
of/IN
the/DT
tax/NN
burden/NN
,/,
as/IN
the/DT
authors/NNS
of/IN
the/DT
1986/CD
law/NN
hoped/VBD
./.
Corporate/JJ
taxes/NNS
paid/VBD
for/IN
almost/RB
12/CD
%/NN
of/IN
federal/JJ
spending/NN
in/IN
1988/CD
--/:
excluding/VBG
Social/NNP
Security/NNP
--/:
compared/VBN
with/IN
less/JJR
than/IN
8/CD
%/NN
in/IN
the/DT
first/JJ
half/NN
of/IN
the/DT
1980s/NNS
,/,
the/DT
study/NN
found/VBD
./.
``/``
Tax/NN
reform/NN
is/VBZ
working/VBG
,/,
''/''
the/DT
study/NN
said/VBD
./.
``/``
Under/IN
the/DT
new/JJ
tax-reform/JJ
law/NN
,/,
the/DT
days/NNS
of/IN
widespread/JJ
,/,
wholesale/JJ
corporate/JJ
tax/NN
avoidance/NN
have/VBP
come/VBN
to/TO
an/DT
end/NN
./.
''/''
Still/RB
,/,
Kroger/NNP
Co./NNP
,/,
Pinnacle/NNP
West/NNP
Capital/NNP
Corp./NNP
,/,
CSX/NNP
Corp./NNP
,/,
Illinois/NNP
Power/NNP
Co./NNP
,/,
Media/NNP
General/NNP
Inc./NNP
,/,
Santa/NNP
Fe/NNP
Southern/NNP
Pacific/NNP
Corp./NNP
and/CC
Gulf/NNP
States/NNP
Utilities/NNP
Co./NNP
,/,
did/VBD
n't/RB
pay/VB
any/DT
federal/JJ
income/NN
tax/NN
last/JJ
year/NN
although/IN
they/PRP
garnered/VBD
a/DT
total/NN
of/IN
$/$
1.2/CD
billion/CD
in/IN
profits/NNS
,/,
the/DT
group/NN
said/VBD
./.
In/IN
fact/NN
,/,
six/CD
of/IN
those/DT
companies/NNS
received/VBD
refunds/NNS
,/,
which/WDT
totaled/VBD
$/$
120/CD
million/CD
./.
The/DT
lobbying/NN
group/NN
used/VBD
publicly/RB
available/JJ
information/NN
to/TO
calculate/VB
each/DT
company/NN
's/POS
domestic/JJ
profits/NNS
and/CC
its/PRP$
federal/JJ
income/NN
tax/NN
payments/NNS
./.
This/DT
is/VBZ
the/DT
fifth/JJ
year/NN
Citizens/NNP
for/IN
Tax/NNP
Justice/NNP
has/VBZ
released/VBN
a/DT
study/NN
on/IN
corporate/JJ
tax/NN
bills/NNS
./.
Earlier/JJR
reports/NNS
,/,
which/WDT
revealed/VBD
that/IN
as/RB
many/JJ
as/IN
73/CD
companies/NNS
were/VBD
avoiding/VBG
income/NN
tax/NN
legally/RB
,/,
have/VBP
been/VBN
credited/VBN
with/IN
helping/VBG
galvanize/VB
efforts/NNS
to/TO
overhaul/VB
the/DT
tax/NN
code/NN
./.
But/CC
even/RB
though/IN
companies/NNS
are/VBP
paying/VBG
more/JJR
taxes/NNS
,/,
many/JJ
are/VBP
still/RB
paying/VBG
less/JJR
than/IN
the/DT
statutory/JJ
rate/NN
,/,
the/DT
report/NN
said/VBD
./.
And/CC
45/CD
companies/NNS
paid/VBD
effective/JJ
tax/NN
rates/NNS
of/IN
below/IN
10/CD
%/NN
of/IN
their/PRP$
income/NN
./.
``/``
While/IN
the/DT
overall/JJ
picture/NN
is/VBZ
very/RB
encouraging/JJ
,/,
significant/JJ
corporate/JJ
tax/NN
avoidance/NN
continues/VBZ
,/,
''/''
the/DT
study/NN
said/VBD
./.
Glenn/NNP
Hall/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
F./NNP
Gil/NNP
Troutman/NNP
,/,
46/CD
years/NNS
old/JJ
,/,
was/VBD
named/VBN
chief/JJ
executive/JJ
officer/NN
./.
He/PRP
retains/VBZ
his/PRP$
titles/NNS
of/IN
president/NN
and/CC
chief/NN
operating/NN
officer/NN
and/CC
succeeds/VBZ
as/RB
chief/JJ
executive/NN
Howard/NNP
O./NNP
Painter/NNP
Jr./NNP
,/,
who/WP
remains/VBZ
chairman/NN
of/IN
the/DT
board/NN
./.
DSP/NNP
makes/VBZ
electronic/JJ
instrumentation/NN
and/CC
data/NN|NNS
acquisition/NN
systems/NNS
./.
In/IN
search/NN
of/IN
buyers/NNS
for/IN
upscale/JJ
department-store/NN
chains/NNS
such/JJ
as/IN
Bloomingdale/NNP
's/POS
and/CC
Saks/NNP
Fifth/NNP
Avenue/NNP
,/,
investment/NN
bankers/NNS
are/VBP
turning/VBG
to/TO
--/:
who/WP
else/RB
?/.
The/DT
Japanese/NNPS
./.
But/CC
so/IN
far/RB
Japan/NNP
's/POS
cash-rich/JJ
retailers/NNS
are/VBP
proving/VBG
to/TO
be/VB
cautious/JJ
shoppers/NNS
./.
``/``
We/PRP
have/VBP
the/DT
money/NN
to/TO
buy/VB
./.
But/CC
operating/VBG
a/DT
U.S./NNP
department-store/NN
chain/NN
would/MD
be/VB
very/RB
difficult/JJ
,/,
''/''
says/VBZ
Motoyuki/NNP
Homma/NNP
,/,
managing/NN
director/NN
of/IN
the/DT
international/JJ
division/NN
at/IN
Mitsukoshi/NNP
Ltd./NNP
,/,
one/CD
of/IN
Japan/NNP
's/POS
leading/JJ
department/NN
stores/NNS
./.
Japanese/JJ
retail/JJ
executives/NNS
say/VBP
the/DT
main/JJ
reason/NN
they/PRP
are/VBP
reluctant/JJ
to/TO
jump/VB
into/IN
the/DT
fray/NN
in/IN
the/DT
U.S./NNP
is/VBZ
that/DT
--/:
unlike/IN
manufacturing/NN
--/:
retailing/NN
is/VBZ
extremely/RB
sensitive/JJ
to/TO
local/JJ
cultures/NNS
and/CC
life/NN
styles/NNS
./.
The/DT
Japanese/NNPS
have/VBP
watched/VBN
the/DT
Europeans/NNPS
and/CC
Canadians/NNPS
stumble/VB
in/IN
the/DT
U.S./NNP
market/NN
,/,
and/CC
they/PRP
fret/VBP
that/IN
business/NN
practices/NNS
that/WDT
have/VBP
won/VBN
them/PRP
huge/JJ
profits/NNS
at/IN
home/NN
wo/MD
n't/RB
translate/VB
into/IN
success/NN
in/IN
the/DT
U.S/NNP
./.
Japanese/JJ
department/NN
stores/NNS
are/VBP
also/RB
wary/JJ
of/IN
attracting/VBG
negative/JJ
publicity/NN
./.
After/IN
Sony/NNP
Corp./NNP
's/POS
recent/JJ
headline-grabbing/JJ
acquisition/NN
of/IN
Columbia/NNP
Pictures/NNP
,/,
many/JJ
say/VBP
it/PRP
makes/VBZ
good/JJ
political/JJ
sense/NN
to/TO
lie/VB
low/JJ
./.
``/``
It/PRP
's/VBZ
a/DT
question/NN
of/IN
timing/NN
,/,
''/''
says/VBZ
Mayumi/NNP
Takayama/NNP
,/,
managing/NN
director/NN
of/IN
international/JJ
operations/NNS
at/IN
Isetan/NNP
Co./NNP
,/,
a/DT
Tokyo/NNP
department/NN
store/NN
./.
Still/RB
,/,
for/IN
those/DT
with/IN
a/DT
long-term/JJ
eye/NN
on/IN
the/DT
vast/JJ
U.S./NNP
retail/JJ
market/NN
,/,
this/DT
is/VBZ
a/DT
tempting/JJ
time/NN
to/TO
look/VB
for/IN
bargains/NNS
./.
Britain/NNP
's/POS
B.A.T/NNP
Industries/NNP
PLC/NNP
is/VBZ
trying/VBG
to/TO
unwind/VB
its/PRP$
U.S./NNP
retailing/NN
operations/NNS
,/,
which/WDT
include/VBP
such/JJ
well-known/JJ
stores/NNS
as/IN
Saks/NNP
Fifth/NNP
Avenue/NNP
,/,
Marshall/NNP
Field/NNP
's/POS
,/,
Breuners/NNP
and/CC
Ivey/NNP
's/POS
./.
And/CC
debt-ridden/JJ
Campeau/NNP
Corp./NNP
of/IN
Toronto/NNP
is/VBZ
giving/VBG
up/RP
the/DT
17-store/JJ
Bloomingdale/NNP
's/POS
group/NN
./.
``/``
Every/DT
department/NN
store/NN
in/IN
Japan/NNP
is/VBZ
taking/VBG
a/DT
look/NN
,/,
''/''
says/VBZ
Mike/NNP
Allen/NNP
,/,
a/DT
retail/JJ
analyst/NN
at/IN
Barclay/NNP
's/POS
de/NNP
Zoete/NNP
Wedd/NNP
Securities/NNP
Japan/NNP
Ltd/NNP
./.
Mr./NNP
Allen/NNP
,/,
however/RB
,/,
does/VBZ
n't/RB
think/VB
that/IN
Japan/NNP
is/VBZ
about/RB
to/TO
embark/VB
on/IN
a/DT
major/JJ
buying/NN
binge/NN
./.
Nonetheless/RB
,/,
speculation/NN
heated/VBN
up/RP
yesterday/NN
when/WRB
Tokyu/NNP
Department/NNP
Store/NNP
Co./NNP
confirmed/VBD
a/DT
report/NN
in/IN
Nihon/NNP
Keizai/NNP
Shimbun/NNP
,/,
Japan/NNP
's/POS
leading/JJ
business/NN
daily/NN
,/,
that/IN
Tokyu/NNP
is/VBZ
talking/VBG
with/IN
Campeau/NN
about/IN
buying/VBG
Bloomingdale/NNP
's/POS
./.
Tokyu/NNP
,/,
however/RB
,/,
said/VBD
no/DT
agreement/NN
had/VBD
been/VBN
reached/VBN
./.
Nor/CC
is/VBZ
Tokyu/NNP
the/DT
only/JJ
Japanese/JJ
retailer/NN
interested/JJ
in/IN
Bloomingdale/NNP
's/POS
,/,
which/WDT
bankers/NNS
in/IN
Tokyo/NNP
estimate/NN
could/MD
cost/VB
between/IN
$/$
1/CD
billion/CD
and/CC
$/$
1.5/CD
billion/CD
./.
Seven/CD
Japanese/JJ
department-store/JJ
groups/NNS
were/VBD
approached/VBN
by/IN
investment/NN
bankers/NNS
representing/VBG
Bloomingdale/NNP
's/POS
chairman/NN
,/,
Marvin/NNP
Traub/NNP
,/,
and/CC
more/JJR
than/IN
half/NN
are/VBP
seeking/VBG
additional/JJ
information/NN
on/IN
the/DT
group/NN
,/,
bankers/NNS
say/VBP
./.
What/WP
Mr./NNP
Traub/NNP
is/VBZ
hoping/VBG
to/TO
put/VB
together/RB
,/,
investment/NN
bankers/NNS
say/VBP
,/,
is/VBZ
a/DT
management-led/JJ
group/NN
to/TO
buy/VB
the/DT
New/NNP
York/NNP
department-store/NN
group/NN
that/IN
he/PRP
heads/VBZ
from/IN
Campeau/NNP
's/POS
Federated/NNP
Department/NNP
Stores/NNP
subsidiary/NN
./.
Federated/NNP
ran/VBD
into/IN
a/DT
cash/NN
crunch/NN
after/IN
it/PRP
was/VBD
acquired/VBN
last/JJ
year/NN
by/IN
Campeau/NNP
,/,
which/WDT
relied/VBD
heavily/RB
on/IN
debt/NN
to/TO
finance/VB
the/DT
transaction/NN
./.
Paying/VBG
off/RP
that/DT
debt/NN
put/VBD
such/PDT
a/DT
squeeze/NN
on/IN
Campeau/NNP
and/CC
its/PRP$
stores/NNS
that/IN
Federated/NNP
decided/VBD
to/TO
sell/VB
off/RP
the/DT
jewels/NNS
of/IN
its/PRP$
retailing/NN
empire/NN
,/,
including/VBG
Bloomingdale/NNP
's/POS
./.
Hoping/VBG
to/TO
avoid/VB
another/DT
takeover/NN
,/,
Mr./NNP
Traub/NNP
retained/VBD
Blackstone/NNP
Group/NNP
and/CC
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
to/TO
help/VB
him/PRP
find/VB
partners/NNS
for/IN
a/DT
management-led/JJ
buy-out/NN
./.
Ideally/RB
,/,
investment/NN
bankers/NNS
say/VBP
,/,
he/PRP
wants/VBZ
to/TO
get/VB
backing/NN
from/IN
a/DT
Japanese/JJ
department/NN
store/NN
and/CC
a/DT
European/JJ
department/NN
store/NN
to/TO
forge/VB
a/DT
global/JJ
retailing/NN
network/NN
./.
``/``
When/WRB
you/PRP
look/VBP
at/IN
the/DT
economics/NNS
,/,
Traub/NNP
needs/VBZ
a/DT
Japanese/JJ
and/CC
a/DT
European/JJ
partner/NN
to/TO
make/VB
it/PRP
work/VB
,/,
''/''
says/VBZ
one/CD
investment/NN
banker/NN
who/WP
follows/VBZ
the/DT
retail/JJ
industry/NN
./.
``/``
Looking/VBG
only/RB
at/IN
a/DT
narrow/JJ
American/JJ
strategy/NN
is/VBZ
n't/RB
where/WRB
it/PRP
's/VBZ
at/IN
./.
''/''
Persuading/VBG
tradition-bound/JJ
Japanese/JJ
retailers/NNS
to/TO
get/VB
involved/VBN
in/IN
the/DT
turmoils/NNS
of/IN
the/DT
U.S./NNP
retailing/NN
industry/NN
is/VBZ
n't/RB
likely/JJ
to/TO
be/VB
so/RB
easy/JJ
,/,
analysts/NNS
say/VBP
./.
Up/RB
until/IN
now/RB
,/,
most/JJS
stores/NNS
have/VBP
followed/VBN
the/DT
same/JJ
basic/JJ
overseas/JJ
strategy/NN
:/:
First/RB
they/PRP
set/VBP
up/RP
overseas/JJ
merchandising/NN
offices/NNS
to/TO
import/VB
items/NNS
and/CC
track/VB
new/JJ
fashion/NN
trends/NNS
./.
Then/RB
they/PRP
opened/VBD
small/JJ
gift/NN
shops/NNS
mostly/RB
aimed/VBN
at/IN
Japanese/JJ
tourists/NNS
./.
Reluctant/JJ
to/TO
advance/VB
further/RBR
on/IN
their/PRP$
own/JJ
,/,
some/DT
stores/NNS
have/VBP
settled/VBN
for/IN
tie-ups/NNS
with/IN
famous/JJ
specialty/NN
shops/NNS
./.
Last/JJ
March/NNP
,/,
Isetan/NNP
invested/VBD
1.5/CD
billion/CD
yen/NNS
$/$
10.6/CD
million/CD
a/DT
venture/NN
with/IN
Barney/NNP
's/POS
Inc./NN
,/,
an/DT
up-scale/JJ
New/NNP
York/NNP
specialty/NN
clothier/NN
./.
The/DT
first/JJ
Barney/NNP
's/POS
shop/NN
is/VBZ
scheduled/VBN
to/TO
open/VB
in/IN
Japan/NNP
next/JJ
year/NN
./.
And/CC
Mitsukoshi/NNP
recently/RB
increased/VBD
its/PRP$
equity/NN
stake/NN
in/IN
Tiffany/NNP
&/CC
Co./NNP
to/TO
13/CD
%/NN
./.
Through/IN
the/DT
longstanding/JJ
relationship/NN
between/IN
the/DT
two/CD
companies/NNS
,/,
Mitsukoshi/NNP
has/VBZ
opened/VBN
22/CD
Tiffany/NNP
shops/NNS
in/IN
its/PRP$
stores/NNS
and/CC
arcades/NNS
in/IN
Japan/NNP
./.
Plans/NNS
are/VBP
under/IN
way/NN
to/TO
open/VB
a/DT
Tiffany/NNP
's/POS
in/IN
Hawaii/NNS
to/TO
cater/VB
to/TO
Japanese/JJ
tourists/NNS
;/:
it/PRP
will/MD
be/VB
run/VBN
mostly/RB
by/IN
Mitsukoshi/NNP
./.
Some/DT
industry/NN
observers/NNS
say/VBP
that/IN
Mitsukoshi/NNP
's/POS
classy/JJ
image/NN
makes/VBZ
it/PRP
a/DT
possible/JJ
match/NN
for/IN
Saks/NNP
Fifth/NNP
Avenue/NNP
./.
Company/NN
officials/NNS
say/VBP
they/PRP
are/VBP
studying/VBG
various/JJ
proposals/NNS
but/CC
wo/MD
n't/RB
discuss/VB
details/NNS
./.
Takashimaya/NNP
Co./NNP
,/,
Japan/NNP
's/POS
oldest/JJS
department/NN
store/NN
,/,
is/VBZ
another/DT
name/NN
that/WDT
keeps/VBZ
popping/VBG
up/RP
as/IN
a/DT
potential/JJ
fit/NN
with/IN
Saks/NNP
./.
Eiji/NNP
Nakazato/NNP
,/,
a/DT
Takashimaya/NNP
general/JJ
manager/NN
,/,
admits/VBZ
that/IN
his/PRP$
company/NN
's/POS
image/NN
is/VBZ
similar/JJ
to/TO
Saks/NNP
's/POS
and/CC
that/IN
there/EX
is/VBZ
some/DT
interest/NN
in/IN
the/DT
idea/NN
./.
But/CC
he/PRP
stops/VBZ
there/RB
./.
``/``
We/PRP
'd/MD
like/VB
to/TO
do/VB
business/NN
in/IN
America/NNP
,/,
''/''
he/PRP
says/VBZ
./.
``/``
But/CC
it/PRP
looks/VBZ
tough/JJ
./.
''/''
Marcus/NNP
W./NNP
Brauchli/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Compiled/VBN
by/IN
William/NNP
Mathewson/NNP
The/DT
Vatican/NNP
was/VBD
in/IN
the/DT
red/NN
last/JJ
year/NN
./.
It/PRP
said/VBD
the/DT
regular/JJ
1988/CD
deficit/NN
amounted/VBD
to/TO
$/$
43.5/CD
million/CD
,/,
based/VBN
on/IN
revenue/NN
of/IN
$/$
74.4/CD
million/CD
and/CC
expenses/NNS
of/IN
$/$
117.9/CD
million/CD
./.
But/CC
it/PRP
said/VBD
extraordinary/JJ
expenditures/NNS
for/IN
its/PRP$
radio/NN
station/NN
and/CC
restoration/NN
of/IN
buildings/NNS
increased/VBD
the/DT
deficit/NN
to/TO
$/$
57.2/CD
million/CD
./.
A/DT
statement/NN
from/IN
the/DT
council/NN
of/IN
cardinals/NNS
said/VBD
Catholics/NNPS
had/VBD
responded/VBN
generously/RB
to/TO
an/DT
appeal/NN
last/JJ
year/NN
to/TO
give/VB
more/JJR
money/NN
after/IN
1987/CD
's/POS
record/JJ
$/$
63/CD
million/CD
deficit/NN
./.
The/DT
statement/NN
said/VBD
a/DT
5/CD
%/NN
jump/NN
in/IN
the/DT
``/``
Peter/NNP
's/POS
Pence/NNP
''/''
collection/NN
--/:
the/DT
annual/JJ
offering/NN
from/IN
Catholics/NNPS
to/TO
the/DT
pope/NN
--/:
helped/VBD
cover/VB
the/DT
deficit/NN
./.
Council/NN
member/NN
Cardinal/NNP
Gerald/NNP
Carter/NNP
of/IN
Toronto/NNP
told/VBD
Vatican/NNP
Radio/NNP
:/:
``/``
Now/RB
that/IN
we/PRP
say/VBP
we/PRP
covered/VBD
our/PRP$
deficit/NN
this/DT
year/NN
,/,
people/NNS
are/VBP
going/VBG
to/TO
relax/VB
and/CC
say/VB
well/RB
that/DT
's/VBZ
fine/JJ
,/,
the/DT
Holy/NNP
See/NNP
is/VBZ
out/IN
of/IN
the/DT
hole/NN
./.
But/CC
we/PRP
're/VBP
.../:
going/VBG
to/TO
be/VB
in/IN
the/DT
exact/JJ
same/JJ
situation/NN
next/IN
year/NN
./.
''/''
Former/NNP
President/NNP
Richard/NNP
Nixon/NNP
is/VBZ
to/TO
visit/VB
China/NNP
at/IN
the/DT
invitation/NN
of/IN
the/DT
government/NN
beginning/VBG
Saturday/NNP
,/,
the/DT
Foreign/NNP
Ministry/NNP
announced/VBD
./.
According/VBG
to/TO
Mr./NNP
Nixon/NNP
's/POS
office/NN
,/,
``/``
This/DT
is/VBZ
solely/RB
a/DT
fact-finding/JJ
trip/NN
./.
There/EX
will/MD
be/VB
no/RB
sightseeing/NN
,/,
no/DT
shopping/NN
and/CC
no/DT
social/JJ
events/NNS
./.
''/''
Mr./NNP
Nixon/NNP
's/POS
office/NN
said/VBD
the/DT
former/JJ
president/NN
``/``
expects/VBZ
to/TO
have/VB
one-on-one/JJ
discussions/NNS
with/IN
the/DT
major/JJ
Chinese/JJ
leaders/NNS
''/''
and/CC
will/MD
give/VB
his/PRP$
assessment/NN
of/IN
those/DT
leaders/NNS
to/TO
President/NNP
Bush/NNP
upon/IN
his/PRP$
return/NN
./.
A/DT
poll/NN
conducted/VBN
in/IN
12/CD
of/IN
16/CD
NATO/NNP
countries/NNS
shows/VBZ
that/IN
the/DT
Dutch/NNPS
appear/VBP
to/TO
be/VB
the/DT
strongest/JJS
supporters/NNS
of/IN
the/DT
alliance/NN
./.
The/DT
poll/NN
,/,
conducted/VBN
for/IN
the/DT
Dutch/JJ
daily/NN
De/NNP
Telegraaf/NNP
by/IN
Gallup/NNP
International/NNP
said/VBD
81/CD
%/NN
of/IN
Dutch/JJ
people/NNS
supported/VBD
NATO/NNP
./.
Canada/NNP
was/VBD
the/DT
second/JJ
most/RBS
pro-NATO/JJ
country/NN
with/IN
78/CD
%/NN
supporting/VBG
the/DT
alliance/NN
,/,
followed/VBN
by/IN
the/DT
U.S./NNP
with/IN
75/CD
%/NN
,/,
Britain/NNP
with/IN
71/CD
%/NN
,/,
Belgium/NN
with/IN
69/CD
%/NN
and/CC
West/NNP
Germany/NNP
with/IN
63/CD
%/NN
./.
All/DT
other/JJ
countries/NNS
registered/VBD
support/NN
below/IN
50/CD
%/NN
./.
The/DT
Israeli/NNP
Manufacturers/NNP
'/POS
Association/NN
filed/VBD
a/DT
police/NN
complaint/NN
against/IN
an/DT
Arab/JJ
pasta/NN
maker/NN
for/IN
using/VBG
the/DT
four/CD
colors/NNS
of/IN
the/DT
outlawed/JJ
Palestinian/JJ
flag/NN
on/IN
spaghetti/NNS
packages/NNS
./.
``/``
We/PRP
asked/VBD
police/NNS
to/TO
investigate/VB
why/WRB
they/PRP
are/VBP
allowed/VBN
to/TO
distribute/VB
the/DT
flag/NN
in/IN
this/DT
way/NN
./.
It/PRP
should/MD
be/VB
considered/VBN
against/IN
the/DT
law/NN
,/,
''/''
said/VBD
Danny/NNP
Leish/NNP
,/,
a/DT
spokesman/NN
for/IN
the/DT
association/NN
./.
The/DT
spaghetti/NNS
is/VBZ
made/VBN
by/IN
the/DT
Al/NNP
Ghazel/NNP
Macaroni/NNP
Co./NNP
in/IN
Bethlehem/NNP
and/CC
is/VBZ
marketed/VBN
in/IN
a/DT
package/NN
decorated/VBN
with/IN
green/JJ
,/,
black/JJ
,/,
red/JJ
and/CC
white/JJ
stripes/NNS
./.
British/JJ
postal/JJ
authorities/NNS
say/VBP
they/PRP
have/VBP
uncovered/VBN
a/DT
large-scale/JJ
scheme/NN
where/WRB
unscrupulous/JJ
stamp/NN
dealers/NNS
chemically/RB
removed/VBD
stamp/NN
cancellations/NNS
,/,
regummed/VBD
the/DT
stamps/NNS
and/CC
sold/VBD
them/PRP
to/TO
U.S./NNP
collectors/NNS
or/CC
,/,
in/IN
large/JJ
lots/NNS
,/,
to/TO
British/JJ
businesses/NNS
./.
The/DT
scheme/NN
allegedly/RB
cost/VBD
the/DT
post/NN
office/NN
#/#
10/CD
million/CD
$/$
16.1/CD
revenue/NN
in/IN
the/DT
past/JJ
12/CD
months/NNS
./.
Dealers/NNS
bought/VBD
the/DT
used/JJ
stamps/NNS
cheaply/RB
from/IN
charities/NNS
,/,
including/VBG
the/DT
Guide/NNP
Dogs/NNP
for/IN
the/DT
Blind/NNP
Association/NNP
./.
The/DT
charities/NNS
regularly/RB
sell/VBP
used/JJ
stamps/NNS
,/,
which/WDT
they/PRP
collect/VBP
from/IN
children/NNS
and/CC
other/JJ
donors/NNS
,/,
to/TO
raise/VB
funds/NNS
./.
Akio/NNP
Tanii/NNP
,/,
president/NN
of/IN
Japan/NNP
's/POS
Matsushita/NNP
Electric/NNP
Industrial/NNP
Co./NNP
,/,
presented/VBD
the/DT
U.S./NNP
consul/NN
general/JJ
in/IN
Osaka/NNP
with/IN
a/DT
$/$
1/CD
million/CD
check/NN
to/TO
help/VB
San/NNP
Francisco/NNP
's/POS
earthquake/NN
victims/NNS
./.
The/DT
company/NN
's/POS
U.S./NNP
subsidiary/NN
,/,
Matsushita/NNP
Electric/NNP
Corp./NNP
of/IN
America/NNP
,/,
had/VBD
donated/VBN
over/IN
$/$
35,000/CD
worth/NN
of/IN
Matsushita-made/JJ
flashlights/NNS
and/CC
batteries/NNS
to/TO
residents/NNS
shortly/RB
after/IN
the/DT
disaster/NN
,/,
a/DT
company/NN
spokesman/NN
said/VBD
./.
Several/JJ
other/JJ
Japanese/JJ
companies/NNS
and/CC
regional/JJ
governments/NNS
have/VBP
sent/VBN
aid/NN
to/TO
San/NNP
Francisco/NNP
./.
Sumitomo/NNP
Bank/NNP
donated/VBD
$/$
500,000/CD
,/,
Tokyo/NNP
prefecture/NN
$/$
15,000/CD
and/CC
the/DT
city/NN
of/IN
Osaka/NNP
$/$
10,000/CD
./.
Chinese/JJ
officials/NNS
are/VBP
trying/VBG
to/TO
use/VB
the/DT
Canton/NNP
Trade/NNP
Fair/NNP
to/TO
lure/VB
back/RP
overseas/JJ
traders/NNS
after/IN
the/DT
bloody/JJ
crackdown/NN
on/IN
dissent/NN
./.
But/CC
attendance/NN
is/VBZ
down/RB
from/IN
previous/JJ
years/NNS
./.
What/WP
's/VBZ
more/JJR
,/,
a/DT
Hong/NNP
Kong/NNP
textile/NN
trader/NN
says/VBZ
,/,
some/DT
Chinese/JJ
exporters/NNS
from/IN
state-run/JJ
enterprises/NNS
are/VBP
protesting/VBG
the/DT
crackdown/NN
by/IN
dragging/VBG
their/PRP$
feet/NNS
on/IN
soliciting/VBG
new/JJ
business/NN
./.
``/``
They/PRP
are/VBP
angry/JJ
about/IN
the/DT
government/NN
.../:
so/RB
they/PRP
hold/VBP
back/RP
the/DT
goods/NNS
,/,
''/''
he/PRP
said/VBD
./.
This/DT
autumn/NN
's/POS
edition/NN
of/IN
the/DT
biannual/JJ
fair/NN
will/MD
run/VB
through/IN
Oct./NNP
31/CD
./.
Inside/IN
the/DT
156,000-square-yard/JJ
glass/NN
exhibition/NN
complex/NN
,/,
products/NNS
ranging/VBG
from/IN
clothing/NN
to/TO
AK-47/NNP
machine/NN
guns/NNS
are/VBP
on/IN
display/NN
./.
Fair/NN
officials/NNS
say/VBP
that/IN
21,000/CD
guests/NNS
visited/VBD
during/IN
the/DT
first/JJ
five/CD
days/NNS
,/,
a/DT
10/CD
%/NN
drop/NN
from/IN
the/DT
spring/NN
exhibition/NN
./.
But/CC
China/NNP
's/POS
official/JJ
Xinhua/NNP
News/NNP
Agency/NNP
reported/VBD
that/IN
the/DT
number/NN
of/IN
foreign/JJ
businessmen/NNS
was/VBD
greater/JJR
than/IN
the/DT
previous/JJ
fair/NN
--/:
without/IN
providing/VBG
statistics/NNS
./.
In/IN
another/DT
sign/NN
of/IN
glasnost/NN
,/,
Alexander/NNP
Solzhenitsyn/NNP
's/POS
long-banned/JJ
chronicle/NN
of/IN
Soviet/JJ
repression/NN
,/,
``/``
The/DT
Gulag/NNP
Archipelago/NNP
,/,
''/''
is/VBZ
now/RB
recommended/JJ
reading/NN
in/IN
one/CD
11th-grade/JJ
Moscow/NNP
history/NN
class/NN
.../:
./.
British/JJ
customs/NNS
officers/NNS
said/VBD
they/PRP
'd/MD
arrested/VBN
eight/CD
men/NNS
sneaking/VBG
111/CD
rare/JJ
snakes/NNS
into/IN
Britain/NNP
--/:
including/VBG
one/CD
man/NN
who/WP
strapped/VBD
a/DT
pair/NN
of/IN
boa/NN
constrictors/NNS
under/IN
his/PRP$
armpits/NNS
./.
A/DT
customs/NNS
official/NN
said/VBD
the/DT
arrests/NNS
followed/VBD
a/DT
``/``
Snake/NNP
Day/NNP
''/''
at/IN
Utrecht/NNP
University/NNP
in/IN
the/DT
Netherlands/NNP
,/,
an/DT
event/NN
used/VBN
by/IN
some/DT
collectors/NNS
as/IN
an/DT
opportunity/NN
to/TO
obtain/VB
rare/JJ
snakes/NNS
./.
Di/NNP
Giorgio/NNP
Corp./NNP
said/VBD
it/PRP
's/VBZ
continuing/VBG
talks/NNS
with/IN
potential/JJ
buyers/NNS
of/IN
certain/JJ
units/NNS
,/,
but/CC
has/VBZ
reached/VBN
no/DT
agreement/NN
on/IN
any/DT
deals/NNS
./.
Di/NNP
Giorgio/NNP
,/,
a/DT
food/NN
wholesaler/NN
and/CC
building/NN
products/NNS
maker/NN
,/,
is/VBZ
seeking/VBG
alternatives/NNS
to/TO
an/DT
unsolicited/JJ
$/$
32-a-share/JJ
tender/NN
offer/NN
of/IN
DIG/NNP
Acquisition/NNP
Corp./NNP
,/,
a/DT
unit/NN
of/IN
Rose/NNP
Partners/NNP
Limited/NNP
Partnership/NNP
./.
DIG/NNP
is/VBZ
the/DT
vehicle/NN
being/VBG
used/VBN
to/TO
pursue/VB
to/TO
acquisition/NN
./.
Robert/NNP
Mellor/NNP
,/,
Di/NNP
Giorgio/NNP
's/POS
executive/JJ
vice/NN
president/NN
,/,
said/VBD
the/DT
company/NN
stands/VBZ
to/TO
reap/VB
more/JJR
money/NN
through/IN
the/DT
sale/NN
of/IN
individual/JJ
units/NNS
to/TO
others/NNS
than/IN
by/IN
accepting/VBG
DIG/NNP
's/POS
offer/NN
./.
Some/DT
lousy/JJ
earnings/NNS
reports/NNS
whacked/VBD
the/DT
stock/NN
market/NN
,/,
but/CC
bond/NN
prices/NNS
fell/VBD
only/RB
slightly/RB
and/CC
the/DT
dollar/NN
rose/VBD
a/DT
little/JJ
against/IN
most/JJS
major/JJ
currencies/NNS
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
tumbled/VBD
39.55/CD
points/NNS
,/,
to/TO
2613.73/CD
,/,
in/IN
active/JJ
trading/NN
./.
Long-term/JJ
Treasury/NNP
bonds/NNS
ended/VBD
slightly/RB
higher/JJR
./.
The/DT
dollar/NN
rose/VBD
modestly/RB
against/IN
the/DT
mark/NN
and/CC
the/DT
yen/NN
,/,
but/CC
soared/VBD
against/IN
the/DT
pound/NN
following/VBG
the/DT
resignation/NN
of/IN
Britain/NNP
's/POS
chancellor/NN
of/IN
the/DT
Exchequer/NNP
,/,
Nigel/NNP
Lawson/NNP
./.
Analysts/NNS
have/VBP
complained/VBN
that/IN
third-quarter/JJ
corporate/JJ
earnings/NNS
have/VBP
n't/RB
been/VBN
very/RB
good/JJ
,/,
but/CC
the/DT
effect/NN
hit/VBD
home/RB
particularly/RB
hard/RB
yesterday/NN
./.
Compaq/NNP
Computer/NNP
nose-dived/VBD
$/$
8.625/CD
a/DT
share/NN
,/,
to/TO
$/$
100/CD
,/,
and/CC
pulled/VBD
other/JJ
technology/NN
issues/NNS
lower/RBR
after/IN
reporting/VBG
lower-than-expected/JJ
earnings/NNS
after/IN
the/DT
stock/NN
market/NN
closed/VBD
Wednesday/NNP
./.
Later/RB
yesterday/NN
the/DT
nation/NN
's/POS
major/JJ
auto/NN
makers/NNS
added/VBD
to/TO
the/DT
gloom/NN
when/WRB
they/PRP
each/DT
reported/VBD
their/PRP$
core/JJ
auto/NN
operations/NNS
were/VBD
net/JJ
losers/NNS
in/IN
the/DT
third/JJ
quarter/NN
./.
The/DT
less-than-robust/JJ
third-quarter/JJ
results/NNS
came/VBD
amid/IN
renewed/JJ
concern/NN
about/IN
the/DT
volatility/NN
of/IN
stock/NN
prices/NNS
and/CC
the/DT
role/NN
of/IN
computer-aided/JJ
program/NN
trading/NN
./.
Taken/VBN
together/RB
,/,
the/DT
worries/NNS
prompted/VBD
a/DT
broad/JJ
sell-off/NN
of/IN
stocks/NNS
./.
The/DT
number/NN
of/IN
stocks/NNS
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
that/WDT
fell/VBD
in/IN
price/NN
yesterday/NN
exceeded/VBD
1,000/CD
,/,
a/DT
key/JJ
measure/NN
of/IN
underlying/JJ
sentiment/NN
among/IN
technical/JJ
analysts/NNS
./.
Although/IN
the/DT
government/NN
said/VBD
the/DT
economy/NN
grew/VBD
an/DT
estimated/JJ
2.5/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
in/IN
line/NN
with/IN
expectations/NNS
,/,
analysts/NNS
are/VBP
increasingly/RB
predicting/VBG
much/RB
more/RBR
sluggish/JJ
growth/NN
--/:
and/CC
therefore/RB
more/JJR
corporate/JJ
earnings/NNS
disappointments/NNS
--/:
for/IN
the/DT
fourth/JJ
quarter/NN
./.
``/``
There/EX
are/VBP
a/DT
lot/RB
more/JJR
downward/JJ
revisions/NNS
of/IN
earnings/NNS
forecasts/NNS
than/IN
upward/JJ
revisions/NNS
,/,
''/''
said/VBD
Abby/NNP
Joseph/NNP
Cohen/NNP
,/,
a/DT
market/NN
strategist/NN
at/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
./.
``/``
People/NNS
are/VBP
questioning/VBG
corporate/JJ
profits/NNS
as/IN
a/DT
pillar/NN
of/IN
support/NN
for/IN
the/DT
equity/NN
market/NN
./.
''/''
The/DT
bond/NN
market/NN
was/VBD
unmoved/JJ
by/IN
the/DT
economic/JJ
statistics/NNS
./.
While/IN
bond/NN
investors/NNS
would/MD
have/VB
preferred/VBN
growth/NN
to/TO
be/VB
a/DT
little/JJ
slower/JJR
,/,
they/PRP
were/VBD
cheered/VBN
by/IN
inflation/NN
measures/NNS
in/IN
the/DT
data/NNS
that/WDT
showed/VBD
prices/NNS
rising/VBG
at/IN
a/DT
modest/JJ
annual/JJ
rate/NN
of/IN
2.9/CD
%/NN
./.
That/DT
is/VBZ
another/DT
small/JJ
encouragement/NN
for/IN
the/DT
Federal/NNP
Reserve/NNP
to/TO
lower/VB
interest/NN
rates/NNS
in/IN
coming/JJ
weeks/NNS
,/,
they/PRP
reasoned/VBD
./.
In/IN
major/JJ
market/NN
activity/NN
:/:
Stock/NNP
prices/NNS
fell/VBD
sharply/RB
in/IN
active/JJ
trading/NN
./.
Volume/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
totaled/VBD
175.2/CD
million/CD
shares/NNS
./.
Declining/VBG
issues/NNS
on/IN
the/DT
Big/NNP
Board/NNP
outstripped/VBD
gainers/NNS
1,141/CD
to/TO
406/CD
./.
Bond/NN
prices/NNS
were/VBD
barely/RB
higher/JJR
./.
The/DT
Treasury/NNP
's/POS
benchmark/NN
30-year/JJ
rose/VBD
fractionally/RB
./.
Yield/NN
on/IN
the/DT
issue/NN
was/VBD
7.88/CD
%/NN
./.
The/DT
dollar/NN
rose/VBD
modestly/RB
against/IN
most/JJS
major/JJ
currencies/NNS
./.
In/IN
late/JJ
New/NNP
York/NNP
trading/NN
the/DT
dollar/NN
was/VBD
at/IN
1.8400/CD
marks/NNS
and/CC
142.10/CD
yen/NNS
compared/VBN
with/IN
1.8353/CD
marks/NNS
and/CC
141.52/CD
yen/NNS
Wednesday/NNP
./.
The/DT
dollar/NN
soared/VBD
against/IN
the/DT
pound/NN
,/,
which/WDT
was/VBD
at/IN
$/$
1.5765/CD
compared/VBN
with/IN
$/$
1.6145/CD
Wednesday/NNP
./.
The/DT
House/NNP
joined/VBD
the/DT
Senate/NNP
in/IN
making/VBG
federal/JJ
reparations/NNS
for/IN
Japanese-Americans/NNPS
held/VBN
in/IN
World/NNP
War/NNP
II/NNP
internment/NN
camps/NNS
a/DT
legal/JJ
entitlement/NN
requiring/VBG
the/DT
Treasury/NNP
Department/NNP
to/TO
meet/VB
expedited/JJ
payments/NNS
of/IN
an/DT
estimated/JJ
$/$
1.25/CD
billion/CD
during/IN
the/DT
next/JJ
several/JJ
years/NNS
./.
The/DT
249-166/JJ
roll/NN
call/NN
came/VBD
as/IN
the/DT
chamber/NN
approved/VBD
a/DT
compromise/NN
bill/NN
allocating/VBG
$/$
17.2/CD
billion/CD
to/TO
the/DT
departments/NNS
of/IN
State/NNP
,/,
Justice/NNP
,/,
and/CC
Commerce/NNP
in/IN
fiscal/JJ
1990/CD
and/CC
imposing/VBG
increased/JJ
fees/NNS
on/IN
business/NN
interests/NNS
making/VBG
filings/NNS
with/IN
the/DT
government/NN
./.
An/DT
estimated/JJ
$/$
40/CD
million/CD
would/MD
come/VB
annually/RB
from/IN
a/DT
new/JJ
$/$
20,000/CD
charge/NN
on/IN
pre-merger/JJ
notifications/NNS
to/TO
the/DT
Justice/NNP
Department/NNP
,/,
and/CC
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
filing/NN
fees/NNS
would/MD
rise/VB
by/IN
25/CD
%/NN
to/TO
fund/VB
a/DT
$/$
26/CD
million/CD
increase/NN
in/IN
the/DT
agency/NN
's/POS
budget/NN
./.
Yesterday/NN
's/POS
vote/NN
on/IN
Japanese-American/JJ
reparations/NNS
ensures/VBZ
final/JJ
enactment/NN
of/IN
the/DT
entitlement/NN
provision/NN
,/,
which/WDT
abandons/VBZ
earlier/JJR
efforts/NNS
to/TO
find/VB
offsetting/JJ
cuts/NNS
but/CC
is/VBZ
seen/VBN
as/IN
a/DT
more/RBR
realistic/JJ
path/NN
to/TO
expediting/VBG
compensation/NN
first/RB
authorized/VBN
in/IN
1988/CD
./.
``/``
The/DT
only/JJ
way/NN
to/TO
reduce/VB
the/DT
costs/NNS
is/VBZ
to/TO
say/VB
we/PRP
do/VBP
n't/RB
want/VB
to/TO
pay/VB
the/DT
bill/NN
,/,
''/''
said/VBD
Rep./NNP
Neal/NNP
Smith/NNP
D./NNP
,/,
Iowa/NNP
who/WP
taunted/VBD
President/NNP
Bush/NNP
's/POS
party/NN
to/TO
back/VB
up/RP
his/PRP$
campaign/NN
promise/NN
of/IN
supporting/VBG
the/DT
claims/NNS
of/IN
$/$
20,000/CD
per/IN
individual/NN
./.
``/``
Read/VB
my/PRP$
lips/NNS
,/,
''/''
said/VBD
Mr./NNP
Smith/NNP
./.
``/``
If/IN
you/PRP
're/VBP
for/IN
paying/VBG
the/DT
claims/NNS
.../:
I/PRP
do/VBP
n't/RB
know/VB
how/WRB
anyone/NN
can/MD
oppose/VB
this/DT
./.
''/''
No/DT
payments/NNS
would/MD
be/VB
made/VBN
this/DT
year/NN
,/,
but/CC
beginning/VBG
in/IN
fiscal/JJ
1991/CD
,/,
the/DT
bill/NN
commits/VBZ
the/DT
government/NN
to/TO
annual/JJ
payments/NNS
of/IN
as/RB
much/JJ
as/IN
$/$
500/CD
million/CD
until/IN
the/DT
total/JJ
liability/NN
of/IN
$/$
1.25/CD
billion/CD
is/VBZ
met/VBN
./.
The/DT
issue/NN
has/VBZ
assumed/VBN
some/DT
of/IN
the/DT
character/NN
of/IN
past/JJ
civil-rights/NNS
debates/NNS
and/CC
reopens/VBZ
old/JJ
regional/JJ
divisions/NNS
in/IN
the/DT
Democratic/JJ
majority/NN
./.
As/RB
much/RB
as/IN
Republicans/NNPS
led/VBD
the/DT
opposition/NN
,/,
among/IN
the/DT
53/CD
Democrats/NNPS
voting/VBG
against/IN
treating/VBG
the/DT
payments/NNS
as/IN
an/DT
entitlement/NN
,/,
42/CD
came/VBD
from/IN
the/DT
13/CD
states/NNS
in/IN
the/DT
Old/NNP
Dixiecrat/NNP
South/NNP
and/CC
its/PRP$
borders/NNS
./.
The/DT
odd/JJ
mix/NN
of/IN
departments/NNS
in/IN
the/DT
underlying/JJ
bill/NN
makes/VBZ
it/PRP
one/CD
of/IN
the/DT
more/RBR
eclectic/JJ
of/IN
the/DT
annual/JJ
appropriations/NNS
measures/NNS
,/,
and/CC
it/PRP
is/VBZ
a/DT
lightning/NN
rod/NN
for/IN
a/DT
running/JJ
battle/NN
over/IN
the/DT
fate/NN
of/IN
the/DT
Legal/NNP
Services/NNP
Corp/NNP
./.
The/DT
measure/NN
provides/VBZ
$/$
321/CD
million/CD
to/TO
maintain/VB
services/NNS
but/CC
would/MD
sharply/RB
curb/VB
the/DT
power/NN
of/IN
the/DT
current/JJ
board/NN
until/IN
successors/NNS
are/VBP
agreed/VBN
to/TO
by/IN
the/DT
Bush/NNP
administration/NN
./.
The/DT
conservative/JJ
bent/NN
of/IN
the/DT
incumbent/JJ
appointees/NNS
,/,
named/VBN
by/IN
former/JJ
President/NNP
Reagan/NNP
,/,
has/VBZ
divided/VBN
Republicans/NNPS
./.
And/CC
on/IN
back-to-back/JJ
roll/NN
calls/NNS
,/,
206-199/JJ
and/CC
223-178/JJ
,/,
the/DT
Appropriations/NNP
Committee/NNP
leadership/NN
turned/VBD
back/RP
efforts/NNS
to/TO
weaken/VB
or/CC
strip/VB
the/DT
proposed/JJ
restrictions/NNS
first/RB
added/VBN
by/IN
Sen./NNP
Warren/NNP
Rudman/NNP
R./NNP
,/,
N.H./NNP
The/DT
estimated/JJ
$/$
40/CD
million/CD
from/IN
the/DT
new/JJ
pre-merger/JJ
notification/NN
fee/NN
would/MD
be/VB
divided/VBN
between/IN
the/DT
Justice/NNP
Department/NNP
's/POS
Antitrust/NNP
Division/NNP
and/CC
the/DT
Federal/NNP
Trade/NNP
Commission/NNP
,/,
which/WDT
both/DT
face/VBP
serious/JJ
cuts/NNS
if/IN
the/DT
income/NN
is/VBZ
n't/RB
realized/VBN
./.
The/DT
Federal/NNP
Bureau/NNP
of/IN
Investigation/NNP
is/VBZ
slated/VBN
to/TO
receive/VB
$/$
30/CD
million/CD
by/IN
charging/VBG
for/IN
fingerprint/NN
services/NNS
in/IN
civil/JJ
cases/NNS
,/,
and/CC
the/DT
judiciary/NN
will/MD
rely/VB
on/IN
another/DT
$/$
32/CD
million/CD
from/IN
bankruptcy/NN
charges/NNS
,/,
including/VBG
a/DT
33/CD
%/NN
increase/NN
in/IN
the/DT
current/JJ
filing/NN
fee/NN
./.
The/DT
$/$
17.2/CD
billion/CD
total/NN
for/IN
the/DT
bill/NN
does/VBZ
n't/RB
include/VB
an/DT
estimated/JJ
$/$
1.2/CD
billion/CD
in/IN
supplemental/JJ
anti-drug/JJ
funds/NNS
approved/VBN
by/IN
the/DT
House-Senate/NNP
conference/NN
yesterday/NN
,/,
and/CC
the/DT
rush/NN
of/IN
money/NN
is/VBZ
already/RB
provoking/JJ
jealousy/NN
among/IN
states/NNS
competing/VBG
for/IN
assistance/NN
./.
The/DT
House/NNP
agreed/VBD
to/TO
defer/VB
for/IN
a/DT
year/NN
a/DT
scheduled/JJ
50/CD
%/NN
increase/NN
in/IN
the/DT
required/JJ
state/NN
matching/JJ
funds/NNS
for/IN
law-enforcement/NN
grants/NNS
but/CC
,/,
by/IN
a/DT
287-123/JJ
margin/NN
,/,
the/DT
chamber/NN
stripped/VBD
a/DT
Senate/NNP
initiative/NN
to/TO
raise/VB
the/DT
minimum/JJ
grant/NN
for/IN
smaller/JJR
states/NNS
,/,
such/JJ
as/IN
New/NNP
Hampshire/NNP
and/CC
Delaware/NNP
,/,
to/TO
$/$
1.6/CD
million/CD
from/IN
$/$
500,000/CD
./.
Few/JJ
are/VBP
more/RBR
powerful/JJ
in/IN
the/DT
competition/NN
for/IN
funds/NNS
than/IN
the/DT
appropriations/NNS
committees/VBZ
themselves/PRP
--/:
including/VBG
the/DT
three/CD
authors/NNS
of/IN
the/DT
Gramm-Rudman-Hollings/NNP
deficit-reduction/JJ
law/NN
./.
When/WRB
a/DT
House-Senate/NNP
conference/NN
on/IN
yesterday/NN
's/POS
bill/NN
rescinded/VBD
$/$
11.8/CD
million/CD
in/IN
unexpended/JJ
funds/NNS
for/IN
a/DT
Fort/NNP
Worth/NNP
,/,
Texas/NNP
,/,
economic/JJ
development/NN
project/NN
backed/VBN
by/IN
former/JJ
Speaker/NNP
James/NNP
Wright/NNP
,/,
Sen./NNP
Phil/NNP
Gramm/NNP
R./NNP
,/,
Texas/NNP
last/JJ
week/NN
that/IN
the/DT
money/NN
be/VB
preserved/VBN
./.
The/DT
measure/NN
includes/VBZ
$/$
2/CD
million/CD
secured/VBN
by/IN
Mr./NNP
Rudman/NNP
for/IN
a/DT
marine-research/NN
project/NN
at/IN
the/DT
University/NNP
of/IN
New/NNP
Hampshire/NNP
,/,
and/CC
Sen./NNP
Ernest/NNP
Hollings/NNP
D./NNP
,/,
S.C/NNP
./.
his/PRP$
power/NN
to/TO
add/VB
$/$
10/CD
million/CD
for/IN
an/DT
advanced/JJ
technology/NN
initiative/NN
in/IN
the/DT
Commerce/NNP
Department/NNP
./.
This/DT
was/VBD
in/IN
addition/NN
to/TO
a/DT
more/RBR
parochial/JJ
$/$
4.5/CD
million/CD
authorization/NN
for/IN
a/DT
health/NN
center/NN
in/IN
South/NNP
Carolina/NNP
upheld/VBN
by/IN
a/DT
273-121/JJ
vote/NN
in/IN
the/DT
House/NNP
last/JJ
night/NN
./.
The/DT
Big/NNP
Three/NNP
U.S./NNP
auto/NN
makers/NNS
posted/VBD
losses/NNS
in/IN
their/PRP$
core/JJ
North/JJ
American/JJ
automotive/JJ
businesses/NNS
for/IN
the/DT
third/JJ
quarter/NN
,/,
and/CC
expectations/NNS
of/IN
continued/JJ
slow/JJ
vehicle/NN
sales/NNS
and/CC
price/NN
wars/NNS
are/VBP
casting/VBG
a/DT
pall/NN
over/IN
the/DT
fourth/JJ
period/NN
./.
The/DT
strongest/JJS
sign/NN
of/IN
the/DT
Big/NNP
Three/CD
's/POS
woes/NNS
came/VBD
from/IN
Ford/NNP
Motor/NNP
Co./NNP
,/,
which/WDT
said/VBD
it/PRP
had/VBD
a/DT
loss/NN
in/IN
its/PRP$
U.S./NNP
automotive/JJ
business/NN
for/IN
the/DT
first/JJ
time/NN
since/IN
1982/CD
./.
Ford/NNP
predicted/VBD
fourth-quarter/JJ
net/JJ
income/NN
will/MD
fall/VB
below/IN
the/DT
year-earlier/JJ
level/NN
,/,
partly/RB
because/IN
of/IN
a/DT
likely/JJ
$/$
500/CD
million/CD
charge/NN
from/IN
the/DT
sale/NN
of/IN
its/PRP$
steel/NN
operations/NNS
./.
The/DT
bleak/JJ
automotive/JJ
results/NNS
were/VBD
offset/VBN
by/IN
strong/JJ
earnings/NNS
from/IN
some/DT
non-automotive/JJ
operations/NNS
./.
Still/RB
,/,
the/DT
combined/JJ
profit/NN
of/IN
Ford/NNP
,/,
Chrysler/NNP
Corp./NNP
and/CC
General/NNP
Motors/NNP
Corp./NNP
fell/VBD
44/CD
%/NN
to/TO
$/$
1.02/CD
billion/CD
from/IN
$/$
1.83/CD
billion/CD
a/DT
year/NN
earlier/RBR
,/,
excluding/VBG
a/DT
one-time/JJ
gain/NN
of/IN
$/$
309/CD
million/CD
at/IN
Chrysler/NNP
from/IN
the/DT
sale/NN
of/IN
Mitsubishi/NNP
Motors/NNP
Corp./NNP
stock/NN
./.
The/DT
last/JJ
time/NN
all/DT
three/CD
companies/NNS
reported/VBD
North/JJ
American/JJ
automotive/JJ
losses/NNS
was/VBD
in/IN
the/DT
recession/NN
year/NN
of/IN
1982/CD
./.
Yesterday/NN
's/POS
announcements/NNS
helped/VBD
spark/VB
a/DT
midday/NN
wave/NN
of/IN
program/NN
selling/NN
in/IN
the/DT
stock/NN
market/NN
./.
GM/NNP
's/POS
common/JJ
closed/VBD
at/IN
$/$
44.375/CD
a/DT
share/NN
,/,
down/IN
50/CD
cents/NNS
,/,
Ford/NNP
fell/VBD
37.5/CD
cents/NNS
to/TO
end/VB
at/IN
$/$
47.50/CD
,/,
and/CC
Chrysler/NNP
eased/VBD
37.5/CD
cents/NNS
to/TO
$/$
22.25/CD
,/,
all/DT
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
The/DT
market/NN
's/POS
pessimism/NN
reflects/VBZ
the/DT
gloomy/JJ
outlook/NN
in/IN
Detroit/NNP
./.
As/IN
Japanese/JJ
auto/NN
makers/NNS
gained/VBD
market/NN
share/NN
,/,
the/DT
Big/NNP
Three/CD
,/,
with/IN
GM/NNP
in/IN
the/DT
lead/NN
,/,
slashed/VBD
North/JJ
American/JJ
production/NN
and/CC
launched/VBD
a/DT
retail/JJ
discounting/NN
blitz/NN
./.
The/DT
price/NN
war/NN
peaked/VBD
in/IN
the/DT
third/JJ
quarter/NN
as/IN
Big/NNP
Three/NNP
factory/NN
discounts/NNS
climbed/VBD
to/TO
more/JJR
than/IN
$/$
1,000/CD
a/DT
vehicle/NN
,/,
according/VBG
to/TO
industry/NN
officials/NNS
./.
GM/NNP
probably/RB
had/VBD
the/DT
``/``
heaviest/JJS
incentives/NNS
,/,
''/''
said/VBD
Robert/NNP
S./NNP
Miller/NNP
,/,
Chrysler/NNP
's/POS
chief/JJ
financial/JJ
officer/NN
./.
``/``
We/PRP
all/DT
did/VBD
what/WP
we/PRP
had/VBD
to/TO
do/VB
to/TO
stay/VB
within/IN
sight/NN
of/IN
them/PRP
./.
''/''
But/CC
the/DT
costly/JJ
efforts/NNS
did/VBD
little/JJ
to/TO
slow/VB
Japanese/JJ
market/NN
gains/NNS
,/,
and/CC
domestic/JJ
car/NN
sales/NNS
have/VBP
plunged/VBN
19/CD
%/NN
since/IN
the/DT
Big/NNP
Three/NNP
ended/VBD
many/JJ
of/IN
their/PRP$
programs/NNS
Sept./NNP
30/CD
./.
GM/NNP
,/,
Ford/NNP
and/CC
Chrysler/NNP
have/VBP
already/RB
cut/VBN
fourth-quarter/JJ
U.S./NNP
output/NN
plans/NNS
an/DT
estimated/JJ
15/CD
%/NN
from/IN
1988/CD
levels/NNS
./.
If/IN
sales/NNS
do/VBP
n't/RB
pick/VB
up/RP
,/,
the/DT
cuts/NNS
will/MD
go/VB
deeper/RBR
and/CC
incentives/NNS
will/MD
sprout/VB
again/RB
./.
Ford/NNP
,/,
which/WDT
has/VBZ
long/RB
boasted/VBN
of/IN
its/PRP$
ability/NN
to/TO
weather/VB
a/DT
downturn/NN
,/,
saw/VBD
earnings/NNS
take/VB
a/DT
beating/NN
./.
The/DT
No./NN
2/CD
auto/NN
maker/NN
blamed/VBD
incentive/NN
costs/NNS
and/CC
reduced/JJ
production/NN
--/:
both/DT
the/DT
result/NN
of/IN
a/DT
substantially/RB
weaker/JJR
U.S./NNP
market/NN
--/:
for/IN
a/DT
44/CD
%/NN
drop/NN
in/IN
net/NN
to/TO
$/$
477.1/CD
million/CD
,/,
or/CC
$/$
1.03/CD
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
20.24/CD
billion/CD
./.
Nearly/RB
all/PDT
the/DT
decline/NN
came/VBD
in/IN
Ford/NNP
's/POS
U.S./NNP
automotive/JJ
operations/NNS
./.
The/DT
Dearborn/NNP
,/,
Mich./NNP
,/,
auto/NN
maker/NN
ran/VBD
a/DT
loss/NN
of/IN
$/$
37/CD
million/CD
on/IN
assembling/VBG
and/CC
marketing/VBG
cars/NNS
in/IN
the/DT
U.S./NNP
,/,
a/DT
deterioration/NN
of/IN
$/$
378/CD
million/CD
in/IN
that/DT
line/NN
from/IN
the/DT
1988/CD
quarter/NN
./.
Ford/NNP
managed/VBD
to/TO
show/VB
a/DT
profit/NN
for/IN
the/DT
quarter/NN
primarily/RB
because/IN
of/IN
earnings/NNS
from/IN
overseas/JJ
auto/NN
operations/NNS
and/CC
financial/JJ
services/NNS
./.
A/DT
year/NN
earlier/RBR
,/,
Ford/NNP
reported/VBD
record/JJ
net/NN
of/IN
$/$
856.3/CD
million/CD
,/,
or/CC
$/$
1.78/CD
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
20.38/CD
billion/CD
./.
In/IN
the/DT
latest/JJS
nine/CD
months/NNS
,/,
Ford/NNP
earned/VBD
$/$
3.52/CD
billion/CD
,/,
or/CC
$/$
7.51/CD
a/DT
share/NN
,/,
compared/VBN
with/IN
$/$
4.14/CD
billion/CD
,/,
or/CC
$/$
8.53/CD
a/DT
share/NN
./.
The/DT
U.S./NNP
automotive/JJ
loss/NN
was/VBD
a/DT
sharp/JJ
reversal/NN
for/IN
a/DT
company/NN
that/WDT
had/VBD
reeled/VBN
off/RP
12/CD
consecutive/JJ
quarters/NNS
of/IN
improved/JJ
earnings/NNS
until/IN
the/DT
1989/CD
second/JJ
quarter/NN
./.
But/CC
David/NNP
N./NNP
McCammon/NNP
,/,
vice/NN
president/NN
,/,
finance/NN
,/,
insisted/VBD
that/IN
cost-cutting/NN
and/CC
tight/JJ
production/NN
capacity/NN
will/MD
make/VB
results/NNS
``/``
better/JJR
in/IN
this/DT
downturn/NN
than/IN
in/IN
prior/JJ
downturns/NNS
,/,
''/''
when/WRB
Ford/NNP
had/VBD
net/JJ
losses/NNS
./.
Still/RB
,/,
Mr./NNP
McCammon/NNP
said/VBD
Ford/NNP
expects/VBZ
the/DT
U.S./NNP
economy/NN
to/TO
weaken/VB
through/IN
the/DT
end/NN
of/IN
1990/CD
,/,
causing/VBG
weaker/JJR
sales/NNS
and/CC
production/NN
./.
As/IN
a/DT
result/NN
,/,
fourth-quarter/JJ
profit/NN
will/MD
come/VB
in/IN
below/IN
1988/CD
results/NNS
,/,
although/IN
the/DT
drop/NN
wo/MD
n't/RB
be/VB
as/RB
sharp/JJ
as/IN
the/DT
44/CD
%/NN
third-quarter/JJ
decline/NN
,/,
he/PRP
said/VBD
./.
Part/NN
of/IN
the/DT
drop/NN
will/MD
come/VB
from/IN
an/DT
anticipated/JJ
charge/NN
of/IN
as/RB
much/JJ
as/IN
$/$
500/CD
million/CD
from/IN
the/DT
proposed/JJ
sale/NN
of/IN
its/PRP$
Rouge/NNP
Steel/NNP
unit/NN
./.
In/IN
the/DT
1988/CD
fourth/JJ
quarter/NN
,/,
Ford/NNP
had/VBD
net/NN
of/IN
$/$
1.16/CD
billion/CD
,/,
or/CC
$/$
2.42/CD
a/DT
share/NN
./.
Chrysler/NNP
's/POS
operating/NN
profit/NN
fell/VBD
to/TO
a/DT
scant/JJ
$/$
22/CD
million/CD
,/,
or/CC
10/CD
cents/NNS
a/DT
share/NN
,/,
its/PRP$
lowest/JJS
quarterly/JJ
total/NN
in/IN
seven/CD
years/NNS
./.
Its/PRP$
$/$
309/CD
million/CD
,/,
or/CC
$/$
1.32/CD
a/DT
share/NN
,/,
gain/NN
from/IN
the/DT
sale/NN
of/IN
75/CD
million/CD
Mitsubishi/NNP
shares/NNS
made/VBD
net/JJ
$/$
331/CD
million/CD
,/,
or/CC
$/$
1.42/CD
a/DT
share/NN
./.
Sales/NNS
were/VBD
flat/JJ
at/IN
$/$
7.88/CD
billion/CD
./.
The/DT
results/NNS
include/VBP
record/JJ
quarterly/JJ
earnings/NNS
of/IN
$/$
76/CD
million/CD
from/IN
Chrysler/NNP
Financial/NNP
Corp/NNP
./.
A/DT
year/NN
earlier/RBR
,/,
Chrysler/NNP
's/POS
net/NN
was/VBD
$/$
113/CD
million/CD
,/,
or/CC
50/CD
cents/NNS
a/DT
share/NN
./.
Mr./NNP
Miller/NNP
said/VBD
costs/NNS
of/IN
incentives/NNS
caused/VBD
a/DT
``/``
moderate/JJ
''/''
loss/NN
in/IN
the/DT
Highland/NNP
Park/NNP
,/,
Mich./NNP
,/,
company/NN
's/POS
North/JJ
American/JJ
car/NN
and/CC
truck/NN
business/NN
./.
He/PRP
said/VBD
the/DT
loss/NN
was/VBD
n't/RB
``/``
that/RB
much/RB
different/JJ
''/''
from/IN
Ford/NNP
's/POS
$/$
37/CD
million/CD
loss/NN
on/IN
U.S./NNP
automotive/JJ
operations/NNS
,/,
but/CC
he/PRP
declined/VBD
to/TO
be/VB
specific/JJ
./.
Mr./NNP
Miller/NNP
said/VBD
Chrysler/NNP
spent/VBD
an/DT
average/NN
of/IN
$/$
1,000/CD
a/DT
vehicle/NN
on/IN
its/PRP$
incentive/NN
programs/NNS
in/IN
the/DT
third/JJ
quarter/NN
,/,
compared/VBN
with/IN
about/RB
$/$
450/CD
a/DT
vehicle/NN
a/DT
year/NN
earlier/RBR
--/:
a/DT
``/``
high-water/JJ
mark/NN
''/''
at/IN
the/DT
time/NN
./.
He/PRP
said/VBD
Chrysler/NNP
``/``
is/VBZ
no/DT
longer/RBR
sure/JJ
''/''
of/IN
its/PRP$
forecast/NN
for/IN
industry/NN
car/NN
and/CC
truck/NN
sales/NNS
of/IN
14.2/CD
million/CD
in/IN
the/DT
1990/CD
model/NN
year/NN
./.
Consumers/NNS
,/,
he/PRP
said/VBD
,/,
are/VBP
balking/VBG
at/IN
higher/JJR
prices/NNS
on/IN
1990/CD
cars/NNS
,/,
especially/RB
after/IN
seeing/VBG
the/DT
incentive-reduced/JJ
prices/NNS
on/IN
1989/CD
models/NNS
./.
In/IN
the/DT
nine/CD
months/NNS
,/,
net/NN
was/VBD
$/$
1.02/CD
billion/CD
,/,
or/CC
$/$
4.38/CD
a/DT
share/NN
,/,
including/VBG
the/DT
gain/NN
from/IN
the/DT
Mitsubishi/NNP
stock/NN
sale/NN
,/,
compared/VBN
with/IN
$/$
617/CD
million/CD
,/,
or/CC
$/$
2.77/CD
a/DT
share/NN
,/,
after/IN
a/DT
charge/NN
of/IN
$/$
93/CD
million/CD
,/,
or/CC
42/CD
cents/NNS
a/DT
share/NN
,/,
for/IN
plant/NN
closings/NNS
in/IN
the/DT
1988/CD
period/NN
./.
Sales/NNS
rose/VBD
8.4/CD
%/NN
to/TO
$/$
27.95/CD
billion/CD
from/IN
$/$
25.78/CD
billion/CD
./.
Heavy/JJ
losses/NNS
in/IN
North/JJ
American/JJ
auto/NN
operations/NNS
sent/VBD
GM/NNP
's/POS
net/NN
tumbling/VBG
to/TO
$/$
516.9/CD
million/CD
from/IN
a/DT
record/NN
$/$
859.2/CD
million/CD
./.
Detroit-based/JJ
GM/NNP
does/VBZ
n't/RB
issue/VB
separate/JJ
quarterly/JJ
earnings/NNS
for/IN
the/DT
North/JJ
American/JJ
automotive/JJ
business/NN
./.
But/CC
analysts/NNS
estimated/VBD
that/IN
GM/NNP
had/VBD
a/DT
loss/NN
of/IN
as/RB
much/JJ
as/IN
$/$
300/CD
million/CD
on/IN
domestic/JJ
vehicle/NN
operations/NNS
./.
An/DT
8.5/CD
%/NN
drop/NN
in/IN
North/JJ
American/JJ
factory/NN
sales/NNS
of/IN
cars/NNS
and/CC
trucks/NNS
cut/VBD
into/IN
revenue/NN
,/,
and/CC
rebates/NNS
to/TO
dealers/NNS
and/CC
customers/NNS
more/RBR
than/IN
offset/VBP
gains/NNS
from/IN
price/NN
increases/NNS
on/IN
1990/CD
model/NN
vehicles/NNS
delivered/VBN
during/IN
the/DT
period/NN
,/,
a/DT
GM/NNP
spokesman/NN
said/VBD
./.
But/CC
GM/NNP
's/POS
results/NNS
also/RB
illustrate/VBP
the/DT
increasing/VBG
diversity/NN
of/IN
its/PRP$
operations/NNS
./.
In/IN
one/CD
breakdown/NN
,/,
GM/NNP
attributed/VBD
half/NN
of/IN
its/PRP$
net/NN
to/TO
its/PRP$
two/CD
big/JJ
technology/NN
units/NNS
,/,
Electronic/NNP
Data/NNP
Systems/NNP
Corp./NNP
and/CC
GM/NNP
Hughes/NNP
Electronics/NNP
Corp/NNP
./.
Meanwhile/RB
,/,
GM/NNP
said/VBD
overseas/JJ
auto/NN
operations/NNS
are/VBP
on/IN
track/NN
to/TO
exceed/VB
last/JJ
year/NN
's/POS
record/JJ
full-year/JJ
net/NN
of/IN
$/$
2.7/CD
billion/CD
./.
The/DT
diversified/JJ
operations/NNS
helped/VBD
GM/NNP
build/VB
its/PRP$
cash/NN
reserves/NNS
,/,
exclusive/JJ
of/IN
its/PRP$
financial/JJ
subsidiary/NN
,/,
to/TO
$/$
5.5/CD
billion/CD
as/IN
of/IN
Sept./NNP
30/CD
,/,
a/DT
22/CD
%/NN
increase/NN
from/IN
a/DT
year/NN
earlier/RBR
./.
This/DT
cushion/NN
could/MD
come/VB
in/IN
handy/JJ
if/IN
GM/NNP
has/VBZ
to/TO
trim/VB
fourth-quarter/JJ
North/JJ
American/JJ
production/NN
schedules/NNS
more/RBR
than/IN
the/DT
already/RB
scheduled/VBN
9.5/CD
%/NN
./.
Under/IN
the/DT
circumstances/NNS
,/,
it/PRP
wo/MD
n't/RB
be/VB
easy/JJ
for/IN
GM/NNP
to/TO
exceed/VB
its/PRP$
record/JJ
1988/CD
fourth-quarter/JJ
net/NN
of/IN
$/$
1.4/CD
billion/CD
,/,
the/DT
spokesman/NN
acknowledged/VBD
./.
That/DT
means/VBZ
it/PRP
's/VBZ
unlikely/JJ
the/DT
company/NN
will/MD
surpass/VB
last/JJ
year/NN
's/POS
$/$
4.9/CD
billion/CD
full-year/JJ
profit/NN
,/,
even/RB
though/IN
net/NN
for/IN
the/DT
first/JJ
nine/CD
months/NNS
was/VBD
up/RB
1.9/CD
%/NN
to/TO
$/$
3.52/CD
billion/CD
on/IN
revenue/NN
of/IN
$/$
95.57/CD
billion/CD
./.
It/PRP
earned/VBD
$/$
3.46/CD
billion/CD
on/IN
revenue/NN
of/IN
$/$
91.21/CD
billion/CD
in/IN
the/DT
1988/CD
nine/CD
months/NNS
./.
slides/NNS
represents/VBZ
income/NN
before/IN
$/$
309/CD
million/CD
after-tax/JJ
gain/NN
from/IN
sale/NN
of/IN
stock/NN
There/EX
are/VBP
two/CD
versions/NNS
of/IN
``/``
Measure/NN
for/IN
Measure/NN
''/''
on/IN
stage/NN
at/IN
the/DT
Alley/NNP
Theater/NNP
here/RB
./.
One/CD
is/VBZ
a/DT
strong/JJ
,/,
vigorous/JJ
portrayal/NN
of/IN
Shakespeare/NNP
's/POS
play/NN
;/:
the/DT
other/JJ
is/VBZ
director/NN
Gregory/NNP
Boyd/NNP
's/POS
overlay/NN
of/IN
present-day/JJ
punk/NN
rock/NN
decadence/NN
on/IN
old/JJ
Vienna/NNP
./.
``/``
Measure/NN
for/IN
Measure/NN
''/''
is/VBZ
one/CD
of/IN
Shakespeare/NNP
's/POS
``/``
problem/NN
''/''
plays/NNS
,/,
so/RB
named/VBN
because/IN
it/PRP
does/VBZ
not/RB
fit/VB
neatly/RB
into/IN
a/DT
category/NN
such/JJ
as/IN
tragedy/NN
,/,
comedy/NN
or/CC
history/NN
./.
Its/PRP$
ambiguity/NN
and/CC
uneasy/JJ
mixture/NN
of/IN
the/DT
serious/JJ
and/CC
the/DT
comic/JJ
is/VBZ
no/DT
doubt/NN
one/CD
reason/NN
why/WRB
it/PRP
is/VBZ
very/RB
much/RB
in/IN
vogue/NN
with/IN
directors/NNS
just/RB
now/RB
./.
Last/JJ
season/NN
,/,
Hartford/NNP
Stage/NNP
director/NN
Mark/NNP
Lamos/NNP
mounted/VBD
a/DT
production/NN
at/IN
Lincoln/NNP
Center/NNP
,/,
and/CC
currently/RB
two/CD
other/JJ
productions/NNS
--/:
one/CD
just/RB
closed/VBN|VBD
at/IN
the/DT
Old/NNP
Globe/NNP
in/IN
San/NNP
Diego/NNP
and/CC
another/DT
now/RB
at/IN
the/DT
Seattle/NNP
Rep/NNP
--/:
overlap/VBP
with/IN
Mr./NNP
Boyd/NNP
's/POS
./.
In/IN
the/DT
play/NN
,/,
the/DT
Duke/NNP
of/IN
Vienna/NNP
despairs/VBZ
over/IN
the/DT
licentiousness/NN
of/IN
his/PRP$
subjects/NNS
and/CC
turns/VBZ
over/RP
the/DT
rule/NN
of/IN
the/DT
city/NN
to/TO
the/DT
puritanical/JJ
Angelo/NNP
,/,
hoping/VBG
he/PRP
can/MD
set/VB
things/NNS
right/JJ
./.
When/WRB
Angelo/NNP
hears/VBZ
that/IN
the/DT
young/JJ
man/NN
Claudio/NNP
has/VBZ
made/VBN
his/PRP$
fiancee/NN
pregnant/JJ
before/IN
he/PRP
could/MD
marry/VB
her/PRP
,/,
Angelo/NNP
summarily/RB
condemns/VBZ
Claudio/NNP
to/TO
death/NN
./.
When/WRB
,/,
however/RB
,/,
Claudio/NNP
's/POS
sister/NN
,/,
Isabella/NNP
,/,
a/DT
novitiate/NN
in/IN
a/DT
convent/NN
,/,
goes/VBZ
to/TO
Angelo/NNP
to/TO
plead/VB
her/PRP$
brother/NN
's/POS
case/NN
,/,
the/DT
obdurate/JJ
ruler/NN
immediately/RB
falls/VBZ
in/IN
love/NN
with/IN
her/PRP
and/CC
,/,
in/IN
a/DT
supreme/JJ
act/NN
of/IN
hypocrisy/NN
,/,
demands/VBZ
that/IN
Isabella/NNP
yield/VB
up/RP
her/PRP$
virtue/NN
to/TO
him/PRP
in/IN
exchange/NN
for/IN
her/PRP$
brother/NN
's/POS
life/NN
./.
Meanwhile/RB
,/,
the/DT
Duke/NNP
,/,
who/WP
set/VBD
the/DT
original/JJ
scheme/NN
in/IN
motion/NN
,/,
appears/VBZ
on/IN
the/DT
scene/NN
disguised/VBN
as/IN
a/DT
friar/NN
and/CC
becomes/VBZ
involved/VBN
in/IN
a/DT
series/NN
of/IN
intrigues/NNS
that/WDT
has/VBZ
everyone/NN
fearing/VBG
the/DT
worst/JJS
possible/JJ
outcome/NN
until/IN
the/DT
Duke/NNP
arranges/VBZ
a/DT
last/JJ
minute/NN
reprieve/NN
for/IN
all/DT
concerned/VBN
./.
For/IN
the/DT
Alley/NNP
production/NN
,/,
scene/NN
designer/NN
Peter/NNP
David/NNP
Gould/NNP
has/VBZ
arranged/VBN
a/DT
stark/JJ
but/CC
extremely/RB
effective/JJ
set/NN
featuring/VBG
a/DT
rectangular/JJ
platform/NN
of/IN
white-washed/JJ
boards/NNS
that/WDT
extends/VBZ
into/IN
the/DT
audience/NN
./.
When/WRB
the/DT
action/NN
requires/VBZ
,/,
a/DT
prison/NN
cell/NN
,/,
consisting/VBG
of/IN
an/DT
enlarged/JJ
wire/NN
cage/NN
,/,
rolls/VBZ
forward/RB
on/IN
iron/NN
wheels/NNS
on/IN
the/DT
platform/NN
./.
In/IN
the/DT
play/NN
's/POS
major/JJ
scenes/NNS
Mr./NNP
Boyd/NNP
demonstrates/VBZ
that/IN
he/PRP
has/VBZ
a/DT
firm/JJ
grasp/NN
of/IN
the/DT
Shakespearean/JJ
dynamic/NN
./.
When/WRB
Isabella/NNP
Ellen/NNP
Lauren/NNP
her/PRP$
brother/NN
Claudio/NNP
Matt/NNP
Loney/NNP
his/PRP$
cell/NN
,/,
explaining/VBG
the/DT
price/NN
she/PRP
has/VBZ
been/VBN
asked/VBN
to/TO
secure/VB
his/PRP$
freedom/NN
;/:
when/WRB
Isabella/NNP
and/CC
the/DT
disguised/JJ
Duke/NNP
Philip/NNP
Kerr/NNP
Angelo/NNP
;/:
and/CC
when/WRB
Mariana/NNP
Annalee/NNP
Jefferies/NNP
a/DT
woman/NN
wronged/VBN
by/IN
Angelo/NNP
,/,
confronts/VBZ
him/PRP
with/IN
his/PRP$
past/JJ
misdeeds/NNS
,/,
the/DT
performers/NNS
bring/VBP
the/DT
dramatic/JJ
high/JJ
points/NNS
to/TO
life/NN
with/IN
intense/JJ
energy/NN
and/CC
intelligence/NN
./.
At/IN
such/JJ
moments/NNS
Mr./NNP
Boyd/NNP
makes/VBZ
it/PRP
clear/JJ
that/IN
he/PRP
has/VBZ
the/DT
capacity/NN
to/TO
be/VB
a/DT
superior/JJ
interpreter/NN
of/IN
Shakespeare/NNP
./.
When/WRB
,/,
however/RB
,/,
he/PRP
decides/VBZ
to/TO
be/VB
modern/JJ
,/,
or/CC
more/RBR
accurately/RB
,/,
when/WRB
he/PRP
decides/VBZ
to/TO
be/VB
trendy/JJ
,/,
the/DT
results/NNS
are/VBP
far/RB
less/RBR
satisfactory/JJ
./.
Mr./NNP
Boyd/NNP
is/VBZ
of/IN
the/DT
directorial/JJ
school/NN
that/WDT
believes/VBZ
one/PRP
must/MD
find/VB
modern/JJ
parallels/NNS
or/CC
metaphors/NNS
to/TO
make/VB
Shakespeare/NN
accessible/JJ
to/TO
today/NN
's/POS
audiences/NNS
./.
It/PRP
's/VBZ
a/DT
valid/JJ
approach/NN
,/,
but/CC
it/PRP
puts/VBZ
a/DT
heavy/JJ
burden/NN
on/IN
the/DT
director/NN
to/TO
show/VB
an/DT
uncommon/JJ
degree/NN
of/IN
imagination/NN
and/CC
taste/NN
./.
In/IN
his/PRP$
``/``
Measure/NN
,/,
''/''
Mr./NNP
Boyd/NNP
has/VBZ
``/``
modernized/VBN
''/''
the/DT
pimps/NNS
and/CC
prostitutes/NNS
of/IN
Vienna/NNP
whom/WP
Angelo/NNP
is/VBZ
supposed/VBN
to/TO
bring/VB
under/IN
control/NN
by/IN
converting/VBG
them/PRP
into/IN
transvestites/NNS
,/,
punk/NN
rockers/NNS
and/CC
heavy/JJ
metal/NN
types/NNS
,/,
with/IN
a/DT
strong/JJ
emphasis/NN
on/IN
leather/NN
,/,
chains/NNS
and/CC
porno-inspired/JJ
costumes/NNS
./.
Loud/JJ
rock/NN
music/NN
accompanies/VBZ
all/PDT
the/DT
scene/NN
changes/NNS
,/,
even/RB
those/DT
in/IN
the/DT
convent/NN
./.
When/WRB
Claudio/NNP
is/VBZ
arrested/VBN
,/,
he/PRP
is/VBZ
brought/VBN
on/IN
stage/NN
nude/JJ
except/IN
for/IN
the/DT
manacles/NNS
on/IN
his/PRP$
wrists/NNS
and/CC
ankles/NNS
./.
When/WRB
the/DT
opportunist/NN
Lucio/NNP
Jack/NNP
Stehlin/NNP
the/DT
convent/NN
to/TO
inform/VB
Isabella/NN
of/IN
her/PRP$
brother/NN
's/POS
fate/NN
,/,
Lucio/NNP
not/RB
only/RB
slaps/VBZ
the/DT
mother/NN
superior/JJ
on/IN
her/PRP$
rear/NN
,/,
but/CC
brings/VBZ
along/RP
a/DT
voluptuous/JJ
companion/NN
Jill/NNP
Powell/NNP
Shakespeare/NNP
's/POS
script/NN
,/,
to/TO
undulate/VB
lasciviously/RB
./.
Meanwhile/RB
,/,
the/DT
pimp/NN
Pompey/NNP
Glen/NNP
Allen/NNP
Pruett/NNP
black/JJ
leather/NN
and/CC
a/DT
prominent/JJ
codpiece/NN
,/,
indulges/VBZ
in/IN
enough/JJ
obscene/JJ
gestures/NNS
and/CC
pelvic/JJ
thrusts/NNS
to/TO
launch/VB
a/DT
space/NN
probe/NN
./.
The/DT
problem/NN
here/RB
is/VBZ
not/RB
in/IN
the/DT
concept/NN
but/CC
in/IN
its/PRP$
lack/NN
of/IN
discrimination/NN
./.
The/DT
inclusion/NN
at/IN
one/CD
point/NN
,/,
for/IN
example/NN
,/,
of/IN
a/DT
list/NN
of/IN
glitzy/JJ
modern-day/JJ
malefactors/NNS
,/,
ranging/VBG
from/IN
Jim/NNP
Bakker/NNP
and/CC
Leona/NNP
Helmsley/NNP
to/TO
Zsa/NNP
Zsa/NNP
Gabor/NNP
,/,
is/VBZ
a/DT
bid/NN
for/IN
a/DT
cheap/JJ
laugh/NN
unworthy/NN
of/IN
Mr./NNP
Boyd/NNP
's/POS
ability/NN
./.
Despite/IN
the/DT
excesses/NNS
,/,
however/RB
,/,
the/DT
scorecard/NN
for/IN
the/DT
production/NN
has/VBZ
many/JJ
more/JJR
pluses/NNS
than/IN
minuses/NNS
./.
What/WP
's/VBZ
more/JJR
,/,
it/PRP
represents/VBZ
an/DT
important/JJ
step/NN
for/IN
the/DT
Alley/NNP
Theater/NNP
./.
``/``
Measure/NN
for/IN
Measure/NN
''/''
is/VBZ
Mr./NNP
Boyd/NNP
's/POS
first/JJ
directorial/JJ
assignment/NN
as/IN
the/DT
theater/NN
's/POS
new/JJ
artistic/JJ
director/NN
./.
He/PRP
succeeded/VBD
Pat/NNP
Brown/NNP
,/,
who/WP
was/VBD
fired/VBN
by/IN
the/DT
Alley/NNP
board/NN
18/CD
months/NNS
ago/RB
./.
Her/PRP$
dismissal/NN
angered/VBD
many/JJ
in/IN
the/DT
regional/JJ
theater/NN
establishment/NN
and/CC
led/VBD
Peter/NNP
Zeisler/NNP
,/,
head/NN
of/IN
Theatre/NNP
Communications/NNP
Group/NNP
,/,
to/TO
write/VB
an/DT
editorial/NN
in/IN
American/NNP
Theatre/NNP
magazine/NN
condemning/VBG
the/DT
board/NN
./.
None/NN
of/IN
this/DT
backlash/NN
could/MD
change/VB
the/DT
fact/NN
that/IN
Ms./NNP
Brown/NNP
's/POS
regime/NN
was/VBD
remarkably/RB
undistinguished/JJ
and/CC
unimaginative/JJ
./.
Now/RB
the/DT
Alley/NNP
has/VBZ
moved/VBN
ahead/RB
on/IN
both/CC
artistic/JJ
and/CC
financial/JJ
fronts/NNS
./.
Not/RB
only/RB
is/VBZ
Mr./NNP
Boyd/NNP
giving/VBG
the/DT
theater/NN
a/DT
new/JJ
sense/NN
of/IN
adventure/NN
and/CC
excitement/NN
on/IN
stage/NN
,/,
the/DT
balance/NN
sheet/NN
is/VBZ
the/DT
best/JJS
the/DT
theater/NN
has/VBZ
had/VBN
in/IN
10/CD
years/NNS
./.
As/IN
opposed/VBN
to/TO
the/DT
$/$
1.4/CD
million/CD
deficit/NN
of/IN
the/DT
1987-88/CD
season/NN
,/,
the/DT
1988-89/CD
year/NN
concluded/VBD
with/IN
a/DT
$/$
200,000/CD
surplus/NN
and/CC
a/DT
$/$
500,000/CD
cash/NN
reserve/NN
./.
Admittedly/RB
last/JJ
season/NN
's/POS
runaway/JJ
hit/NN
,/,
``/``
Steel/NN
Magnolias/NNS
,/,
''/''
helped/VBD
a/DT
lot/NN
,/,
but/CC
so/RB
did/VBD
cost/NN
cutting/NN
and/CC
other/JJ
measures/NNS
insisted/VBN
on/IN
by/IN
the/DT
board/NN
./.
Only/JJ
time/NN
will/MD
tell/VB
if/IN
Mr./NNP
Boyd/NNP
can/MD
restore/VB
to/TO
the/DT
Alley/NNP
the/DT
acclaim/NN
it/PRP
received/VBD
when/WRB
its/PRP$
founder/NN
,/,
Nina/NNP
Vance/NNP
,/,
was/VBD
at/IN
the/DT
height/NN
of/IN
her/PRP$
powers/NNS
./.
But/CC
it/PRP
is/VBZ
clear/JJ
he/PRP
is/VBZ
going/VBG
to/TO
give/VB
it/PRP
a/DT
shot/NN
./.
Democratic/JJ
leaders/NNS
have/VBP
bottled/VBN
up/RP
President/NNP
Bush/NNP
's/POS
capital-gains/NNS
tax/NN
cut/NN
in/IN
the/DT
Senate/NNP
and/CC
may/MD
be/VB
able/JJ
to/TO
prevent/VB
a/DT
vote/NN
on/IN
the/DT
issue/NN
indefinitely/RB
./.
Senate/NNP
Majority/NNP
Leader/NNP
George/NNP
Mitchell/NNP
D./NNP
,/,
Maine/NNP
he/PRP
intends/VBZ
to/TO
use/VB
Senate/NNP
procedures/NNS
to/TO
force/VB
advocates/NNS
of/IN
the/DT
tax/NN
cut/NN
to/TO
come/VB
up/RP
with/IN
at/IN
least/JJS
60/CD
votes/NNS
before/IN
they/PRP
can/MD
address/VB
the/DT
issue/NN
./.
And/CC
neither/DT
Democrats/NNPS
nor/CC
Republicans/NNPS
are/VBP
predicting/VBG
that/IN
the/DT
capital-gains/NNS
forces/NNS
can/MD
produce/VB
enough/JJ
votes/NNS
./.
``/``
The/DT
60-vote/JJ
requirement/NN
will/MD
be/VB
there/RB
and/CC
they/PRP
do/VBP
n't/RB
have/VB
the/DT
60/CD
votes/NNS
,/,
''/''
Sen./NNP
Mitchell/NNP
said/VBD
./.
``/``
They/PRP
do/VBP
n't/RB
have/VB
the/DT
votes/NNS
to/TO
get/VB
it/PRP
passed/VBN
./.
''/''
Sen./NNP
Bob/NNP
Packwood/NNP
R./NNP
,/,
Ore./NNP
the/DT
leading/JJ
Republican/JJ
proponent/NN
of/IN
the/DT
tax/NN
cut/NN
,/,
did/VBD
n't/RB
disagree/VB
./.
``/``
I/PRP
'm/VBP
not/RB
sure/JJ
what/WP
's/VBZ
going/VBG
to/TO
happen/VB
,/,
''/''
he/PRP
said/VBD
./.
Previously/RB
he/PRP
had/VBD
said/VBD
he/PRP
would/MD
be/VB
able/JJ
to/TO
find/VB
the/DT
requisite/JJ
60/CD
votes/NNS
eventually/RB
./.
Sen./NNP
Packwood/NNP
has/VBZ
offered/VBN
his/PRP$
capital-gains-cut/JJ
package/NN
as/IN
an/DT
amendment/NN
to/TO
a/DT
bill/NN
,/,
now/RB
pending/VBG
in/IN
the/DT
Senate/NNP
,/,
that/WDT
would/MD
authorize/VB
aid/NN
to/TO
Poland/NNP
and/CC
Hungary/NNP
./.
Democrats/NNPS
are/VBP
holding/VBG
up/RP
a/DT
vote/NN
on/IN
the/DT
amendment/NN
by/IN
threatening/VBG
a/DT
filibuster/NN
,/,
or/CC
extended/JJ
debate/NN
./.
For/IN
a/DT
cloture/NN
vote/NN
to/TO
stop/VB
the/DT
filibuster/NN
,/,
Republicans/NNPS
must/MD
muster/VB
at/IN
least/JJS
60/CD
votes/NNS
./.
Yesterday/NN
,/,
Sen./NNP
Packwood/NNP
acknowledged/VBD
,/,
``/``
We/PRP
do/VBP
n't/RB
have/VB
the/DT
votes/NNS
for/IN
cloture/NN
today/NN
./.
''/''
The/DT
Republicans/NNPS
show/VBP
no/DT
sign/NN
of/IN
relenting/VBG
./.
GOP/NNP
leaders/NNS
continued/VBD
to/TO
press/VB
for/IN
a/DT
vote/NN
on/IN
the/DT
amendment/NN
to/TO
the/DT
Eastern/NNP
Europe/NNP
aid/NN
measure/NN
./.
And/CC
they/PRP
threatened/VBD
to/TO
try/VB
to/TO
amend/VB
any/DT
other/JJ
revenue/NN
bill/NN
in/IN
the/DT
Senate/NNP
with/IN
the/DT
capital-gains/NNS
provision/NN
./.
``/``
This/DT
is/VBZ
serious/JJ
business/NN
;/:
we/PRP
're/VBP
serious/JJ
about/IN
a/DT
capital-gains/NNS
reduction/NN
,/,
''/''
said/VBD
Kansas/NNP
Sen./NNP
Robert/NNP
Dole/NNP
,/,
the/DT
Senate/NNP
's/POS
Republican/JJ
leader/NN
./.
``/``
The/DT
strategy/NN
is/VBZ
`/``
Let/VB
's/POS
vote/VB
./.
'/''
''/''
The/DT
Republicans/NNPS
contend/VBP
that/IN
they/PRP
can/MD
garner/VB
a/DT
majority/NN
in/IN
the/DT
100-member/JJ
Senate/NNP
for/IN
a/DT
capital-gains/NNS
tax/NN
cut/NN
./.
They/PRP
accuse/VBP
the/DT
Democrats/NNPS
of/IN
unfairly/RB
using/VBG
Senate/NNP
rules/NNS
to/TO
erect/VB
a/DT
60-vote/JJ
hurdle/NN
./.
Democrats/NNPS
counter/VBP
that/IN
the/DT
Republicans/NNPS
have/VBP
often/RB
used/VBN
the/DT
same/JJ
rules/NNS
to/TO
suit/VB
their/PRP$
own/JJ
ends/NNS
./.
The/DT
two/CD
sides/NNS
also/RB
traded/VBD
accusations/NNS
about/IN
the/DT
cost/NN
of/IN
the/DT
Packwood/NNP
plan/NN
./.
Democrats/NNPS
asserted/VBD
that/IN
the/DT
proposal/NN
,/,
which/WDT
also/RB
would/MD
create/VB
a/DT
new/JJ
type/NN
of/IN
individual/JJ
retirement/NN
account/NN
,/,
was/VBD
fraught/JJ
with/IN
budget/NN
gimmickry/NN
that/WDT
would/MD
lose/VB
billions/NNS
of/IN
dollars/NNS
in/IN
the/DT
long/JJ
run/NN
./.
Republicans/NNPS
countered/VBD
that/DT
long-range/JJ
revenue/NN
estimates/NNS
were/VBD
unreliable/JJ
./.
The/DT
Packwood/NNP
proposal/NN
would/MD
reduce/VB
the/DT
tax/NN
depending/VBG
on/IN
how/WRB
long/RB
an/DT
asset/NN
was/VBD
held/VBN
./.
It/PRP
also/RB
would/MD
create/VB
a/DT
new/JJ
IRA/NNP
that/WDT
would/MD
shield/VB
from/IN
taxation/NN
the/DT
appreciation/NN
on/IN
investments/NNS
made/VBN
for/IN
a/DT
wide/JJ
variety/NN
of/IN
purposes/NNS
,/,
including/VBG
retirement/NN
,/,
medical/JJ
expenses/NNS
,/,
first-home/JJ
purchases/NNS
and/CC
tuition/NN
./.
A/DT
White/NNP
House/NNP
spokesman/NN
said/VBD
President/NNP
Bush/NNP
is/VBZ
``/``
generally/RB
supportive/JJ
''/''
of/IN
the/DT
Packwood/NNP
plan/NN
./.
The/DT
World/NNP
Bank/NNP
approved/VBD
$/$
363/CD
million/CD
in/IN
loans/NNS
to/TO
the/DT
Ivory/NNP
Coast/NNP
and/CC
Brazil/NNP
./.
The/DT
Ivory/NNP
Coast/NNP
will/MD
get/VB
two/CD
loans/NNS
totaling/VBG
$/$
216/CD
million/CD
to/TO
support/VB
agricultural/JJ
reforms/NNS
and/CC
help/VB
finance/VB
municipal/JJ
development/NN
in/IN
more/JJR
than/IN
30/CD
cities/NNS
./.
Brazil/NNP
will/MD
get/VB
two/CD
loans/NNS
amounting/VBG
to/TO
$/$
147/CD
million/CD
for/IN
schools/NNS
,/,
roads/NNS
and/CC
other/JJ
projects/NNS
in/IN
urban/JJ
areas/NNS
and/CC
to/TO
help/VB
finance/VB
agricultural/JJ
research/NN
projects/NNS
in/IN
the/DT
Amazon/NNP
and/CC
northeastern/JJ
regions/NNS
of/IN
the/DT
country/NN
./.
The/DT
loans/NNS
will/MD
be/VB
at/IN
variable/JJ
interest/NN
rates/NNS
,/,
currently/RB
7.74/CD
%/NN
a/DT
year/NN
./.
Quantum/NNP
Chemical/NNP
Corp./NNP
suspended/VBD
its/PRP$
cash/NN
dividend/NN
until/IN
at/IN
least/JJS
April/NNP
,/,
saying/VBG
it/PRP
would/MD
pay/VB
stock/NN
dividends/NNS
instead/RB
./.
The/DT
move/NN
came/VBD
as/IN
the/DT
company/NN
,/,
hurt/VBN
by/IN
falling/VBG
plastics/NNS
prices/NNS
and/CC
two/CD
fires/NNS
at/IN
an/DT
important/JJ
plant/NN
,/,
reported/VBD
a/DT
third-quarter/JJ
loss/NN
of/IN
$/$
21.4/CD
million/CD
,/,
or/CC
86/CD
cents/NNS
a/DT
share/NN
./.
In/IN
the/DT
year-earlier/JJ
quarter/NN
,/,
the/DT
New/NNP
York-based/JJ
maker/NN
of/IN
commodity/NN
plastics/NNS
reported/VBD
earnings/NNS
from/IN
continuing/JJ
operations/NNS
of/IN
$/$
94.7/CD
million/CD
,/,
or/CC
$/$
3.72/CD
a/DT
share/NN
./.
Profits/NNS
from/IN
discontinued/JJ
operations/NNS
made/VBN
year-ago/JJ
net/JJ
$/$
99.8/CD
million/CD
,/,
or/CC
$/$
3.92/CD
a/DT
share/NN
./.
As/IN
partial/JJ
compensation/NN
to/TO
its/PRP$
shareholders/NNS
,/,
who/WP
received/VBD
a/DT
special/JJ
$/$
50-a-share/JJ
cash/NN
dividend/NN
earlier/RBR
this/DT
year/NN
,/,
Quantum/NNP
declared/VBD
a/DT
1/CD
%/NN
stock/NN
dividend/NN
payable/JJ
Dec./NNP
1/CD
to/TO
stock/NN
of/IN
record/NN
Nov./NNP
10/CD
./.
The/DT
company/NN
said/VBD
it/PRP
suspended/VBD
the/DT
cash/NN
dividend/NN
because/IN
of/IN
a/DT
covenant/NN
with/IN
some/DT
of/IN
its/PRP$
bondholders/NNS
that/WDT
limits/VBZ
payouts/NNS
to/TO
50/CD
%/NN
of/IN
retained/JJ
operating/NN
profit/NN
from/IN
Jan./NNP
1/CD
,/,
1989/CD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
the/DT
company/NN
has/VBZ
already/RB
paid/VBN
$/$
2.25/CD
a/DT
share/NN
of/IN
dividends/NNS
on/IN
operating/NN
earnings/NNS
of/IN
$/$
3.87/CD
a/DT
share/NN
./.
While/IN
an/DT
exception/NN
could/MD
have/VB
been/VBN
made/VBN
,/,
the/DT
company/NN
said/VBD
,/,
it/PRP
would/MD
only/RB
have/VB
postponed/VBN
the/DT
suspension/NN
./.
``/``
Why/WRB
not/RB
bite/VB
the/DT
bullet/NN
?/.
''/''
said/VBD
a/DT
spokesman/NN
for/IN
the/DT
company/NN
./.
As/IN
previously/RB
reported/VBN
,/,
Quantum/NNP
has/VBZ
been/VBN
hurt/VBN
by/IN
a/DT
drop/NN
of/IN
20/CD
%/NN
to/TO
30/CD
%/NN
in/IN
prices/NNS
for/IN
polyethylene/NN
,/,
a/DT
basic/JJ
ingredient/NN
used/VBN
to/TO
make/VB
such/JJ
products/NNS
as/IN
garbage/NN
bags/NNS
,/,
milk/NN
jugs/NNS
,/,
meat/NN
packaging/NN
and/CC
toys/NNS
./.
Sales/NNS
from/IN
continuing/JJ
operations/NNS
fell/VBD
sharply/RB
to/TO
$/$
557.7/CD
million/CD
from/IN
$/$
724.4/CD
million/CD
in/IN
the/DT
year-earlier/JJ
quarter/NN
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
sales/NNS
fell/VBD
slightly/RB
to/TO
$/$
2.04/CD
billion/CD
from/IN
$/$
2.11/CD
billion/CD
./.
Although/IN
Quantum/NNP
has/VBZ
captured/VBN
about/RB
a/DT
20/CD
%/NN
share/NN
of/IN
the/DT
U.S./NNP
polyethylene/NN
market/NN
,/,
it/PRP
is/VBZ
more/RBR
vulnerable/JJ
to/TO
price/VB
swings/NNS
than/IN
some/DT
of/IN
its/PRP$
bigger/JJR
rivals/NNS
,/,
including/VBG
Dow/NNP
Chemical/NNP
Co./NNP
and/CC
Union/NNP
Carbide/NNP
Corp./NNP
,/,
which/WDT
have/VBP
much/RB
broader/JJR
business/NN
bases/NNS
./.
In/IN
addition/NN
,/,
two/CD
devastating/JJ
fires/NNS
at/IN
Quantum/NNP
's/POS
chemical/NN
complex/NN
in/IN
Morris/NNP
,/,
Ill./NNP
,/,
caused/VBD
an/DT
estimated/JJ
loss/NN
of/IN
$/$
22/CD
million/CD
,/,
or/CC
89/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
third/JJ
quarter/NN
./.
The/DT
plant/NN
,/,
which/WDT
filled/VBD
about/RB
25/CD
%/NN
of/IN
the/DT
company/NN
's/POS
ethylene/NN
needs/NNS
and/CC
represented/VBD
about/RB
25/CD
%/NN
of/IN
its/PRP$
polyethylene/NN
capacity/NN
,/,
wo/MD
n't/RB
be/VB
back/RB
on/IN
line/NN
until/IN
early/JJ
1991/CD
./.
Until/IN
then/RB
,/,
secondary/JJ
plants/NNS
that/WDT
depend/VBP
on/IN
products/NNS
made/VBN
at/IN
Morris/NNP
will/MD
operate/VB
at/IN
reduced/JJ
capacity/NN
./.
A/DT
further/JJ
hit/NN
came/VBD
from/IN
expenses/NNS
connected/VBN
with/IN
Quantum/NNP
's/POS
joint/JJ
acquisition/NN
in/IN
August/NNP
of/IN
Petrolane/NNP
Inc./NNP
,/,
a/DT
propane/NN
distributor/NN
./.
Nonrecurring/JJ
charges/NNS
from/IN
the/DT
bridge/NN
loan/NN
and/CC
other/JJ
purchase/NN
expenses/NNS
cost/VBP
the/DT
company/NN
$/$
17.9/CD
million/CD
,/,
or/CC
79/CD
cents/NNS
a/DT
share/NN
,/,
for/IN
the/DT
quarter/NN
./.
Moreover/RB
,/,
Quantum/NNP
is/VBZ
still/RB
in/IN
the/DT
midst/NN
of/IN
a/DT
three-year/JJ
plant/NN
expansion/NN
program/NN
valued/VBN
at/IN
about/RB
$/$
1.3/CD
billion/CD
that/WDT
will/MD
continue/VB
to/TO
put/VB
pressure/NN
on/IN
its/PRP$
cash/NN
flow/NN
and/CC
earnings/NNS
./.
Despite/IN
the/DT
hammering/NN
,/,
Quantum/NNP
said/VBD
it/PRP
may/MD
restore/VB
the/DT
cash/NN
dividend/NN
at/IN
its/PRP$
April/NNP
26/CD
board/NN
meeting/NN
./.
If/IN
not/RB
,/,
the/DT
company/NN
says/VBZ
it/PRP
will/MD
pay/VB
2/CD
%/NN
stock/NN
dividends/NNS
on/IN
a/DT
semiannual/JJ
basis/NN
until/IN
its/PRP$
cash/NN
situation/NN
improves/VBZ
./.
Investors/NNS
seemed/VBD
ambivalent/JJ
about/IN
Quantum/NNP
's/POS
prospects/NNS
./.
Several/JJ
brokerage/NN
firms/NNS
issued/VBD
buy/VB|NN
recommendations/NNS
on/IN
the/DT
stock/NN
yesterday/NN
./.
In/IN
active/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Quantum/NNP
's/POS
shares/NNS
closed/VBD
at/IN
$/$
33.25/CD
,/,
down/RB
$/$
1.50/CD
./.
Just/RB
when/WRB
it/PRP
looked/VBD
like/IN
the/DT
Nasdaq/NNP
over-the-counter/JJ
market/NN
might/MD
be/VB
firming/VBG
,/,
nervous/JJ
investors/NNS
dumped/VBD
shares/NNS
of/IN
the/DT
biggest/JJS
nonfinancial/JJ
issues/NNS
and/CC
sent/VBD
the/DT
market/NN
tumbling/VBG
./.
Because/IN
of/IN
the/DT
heavy/JJ
selling/NN
of/IN
such/JJ
large/JJ
stocks/NNS
as/IN
Intel/NNP
,/,
Oracle/NNP
Systems/NNP
,/,
Apple/NNP
Computer/NNP
,/,
Microsoft/NNP
and/CC
Lotus/NNP
Development/NNP
,/,
the/DT
Nasdaq/NNP
Composite/NNP
Index/NNP
slumped/VBD
4.74/CD
,/,
or/CC
1/CD
%/NN
,/,
to/TO
458.15/CD
./.
Those/DT
stocks/NNS
and/CC
other/JJ
industrial/JJ
issues/NNS
are/VBP
part/NN
of/IN
the/DT
Nasdaq/NNP
100/CD
Index/NNP
,/,
which/WDT
plunged/VBD
8.12/CD
,/,
or/CC
1.8/CD
%/NN
,/,
to/TO
By/IN
comparison/NN
,/,
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
Composite/NNP
fell/VBD
1/CD
%/NN
;/:
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
slid/VBD
1.5/CD
%/NN
and/CC
the/DT
S&P/NNP
500/CD
Index/NNP
dropped/VBD
1/CD
%/NN
./.
Every/DT
Nasdaq/NNP
industry/NN
index/NN
was/VBD
lower/JJR
./.
The/DT
Utility/NNP
Index/NNP
,/,
which/WDT
includes/VBZ
Tele-Communications/NNP
,/,
MCI/NNP
Communications/NNP
and/CC
LIN/NNP
Broadcasting/NNP
,/,
plummeted/VBD
9.55/CD
to/TO
734.41/CD
./.
All/DT
three/CD
of/IN
those/DT
stocks/NNS
declined/VBD
./.
Industrial/JJ
stocks/NNS
fell/VBD
5.80/CD
to/TO
444.19/CD
and/CC
transportation/NN
issues/NNS
slid/VBD
4.03/CD
to/TO
478.28/CD
./.
The/DT
Other/NNP
Finance/NNP
Index/NNP
--/:
the/DT
barometer/NN
of/IN
regional/JJ
banking/NN
,/,
real-estate-investment/NN
and/CC
brokerage/NN
issues/NNS
,/,
dropped/VBD
2.58/CD
to/TO
536.94/CD
./.
The/DT
index/NN
of/IN
small/JJ
commercial/JJ
banks/NNS
was/VBD
down/IN
2.54/CD
to/TO
440.99/CD
and/CC
the/DT
index/NN
of/IN
insurance/NN
stocks/NNS
eased/VBD
0.84/CD
to/TO
536.04/CD
./.
The/DT
Nasdaq/NNP
Financial/NNP
Index/NNP
of/IN
the/DT
100/CD
largest/JJS
stocks/NNS
in/IN
the/DT
group/NN
lost/VBD
2.11/CD
to/TO
452.75/CD
./.
``/``
The/DT
market/NN
felt/VBD
sloppy/JJ
./.
I/PRP
did/VBD
n't/RB
see/VB
any/DT
buying/NN
at/IN
all/DT
,/,
''/''
said/VBD
William/NNP
Sulya/NNP
,/,
head/JJ
OTC/NNP
trader/NN
at/IN
A.G./NNP
Edwards/NNP
&/CC
Sons/NNP
in/IN
St./NNP
Louis/NNP
./.
Mr./NNP
Sulya/NNP
also/RB
noted/VBD
that/DT
volume/NN
was/VBD
tepid/JJ
,/,
totaling/VBG
only/RB
128.7/CD
million/CD
shares/NNS
./.
``/``
We/PRP
were/VBD
down/RB
and/CC
it/PRP
was/VBD
quiet/JJ
on/IN
top/NN
of/IN
it/PRP
./.
Those/DT
are/VBP
two/CD
nails/NNS
in/IN
a/DT
trader/NN
's/POS
coffin/NN
,/,
''/''
he/PRP
commented/VBD
./.
Some/DT
traders/NNS
complained/VBD
that/IN
OTC/NNP
market/NN
makers/NNS
are/VBP
becoming/VBG
more/RBR
risk-averse/JJ
because/IN
of/IN
the/DT
recent/JJ
volatility/NN
./.
Tony/NNP
Cecin/NNP
,/,
managing/NN
director/NN
of/IN
equity/NN
trading/NN
at/IN
Piper/NNP
,/,
Jaffray/NNP
&/CC
Hopwood/NNP
in/IN
Minneapolis/NNP
,/,
said/VBD
the/DT
overall/JJ
OTC/NNP
market/NN
is/VBZ
drifting/VBG
lower/RBR
in/IN
part/NN
because/IN
``/``
nobody/NN
has/VBZ
the/DT
nerve/NN
to/TO
make/VB
a/DT
bid/NN
for/IN
anything/NN
,/,
''/''
he/PRP
said/VBD
./.
Mostly/RB
in/IN
response/NN
to/TO
news/NN
from/IN
bellwether/NN
Compaq/NNP
Computer/NNP
,/,
the/DT
OTC/NNP
market/NN
's/POS
technology/NN
stocks/NNS
were/VBD
battered/VBN
all/DT
day/NN
./.
Compaq/NNP
's/POS
quarterly/JJ
earnings/NNS
were/VBD
at/IN
the/DT
low/JJ
end/NN
of/IN
analysts/NNS
'/POS
forecasts/NNS
,/,
and/CC
the/DT
company/NN
said/VBD
it/PRP
is/VBZ
experiencing/VBG
problems/NNS
with/IN
a/DT
new/JJ
microchip/NN
from/IN
Intel/NNP
./.
Intel/NNP
confirmed/VBD
the/DT
Compaq/NNP
report/NN
,/,
but/CC
said/VBD
the/DT
problems/NNS
are/VBP
n't/RB
expected/VBN
to/TO
affect/VB
most/JJS
users/NNS
,/,
except/IN
in/IN
``/``
certain/JJ
scientific/JJ
applications/NNS
./.
''/''
Intel/NNP
said/VBD
it/PRP
has/VBZ
more/JJR
than/IN
200/CD
customers/NNS
using/VBG
the/DT
chip/NN
./.
Nevertheless/RB
,/,
Intel/NNP
dropped/VBD
7\/8/CD
to/TO
32/CD
on/IN
3.6/CD
million/CD
shares/NNS
./.
Other/JJ
computer/NN
stocks/NNS
caught/VBN
in/IN
the/DT
fallout/NN
included/VBD
Apple/NNP
,/,
which/WDT
fell/VBD
1/CD
1\/4/CD
to/TO
45/CD
1\/4/CD
./.
Oracle/NNP
Systems/NNP
dropped/VBD
1/CD
to/TO
24/CD
5\/8/CD
./.
Microsoft/NNP
tumbled/VBD
2/CD
to/TO
77/CD
3\/4/CD
and/CC
Lotus/NNP
Development/NNP
was/VBD
off/RB
1/CD
5\/8/CD
to/TO
30/CD
5\/8/CD
./.
Sun/NNP
Microsystems/NNP
eased/VBD
5\/8/CD
to/TO
17/CD
1\/8/CD
,/,
despite/IN
better-than-expected/JJ
fiscal/JJ
first-quarter/JJ
earnings/NNS
./.
Yesterday/NN
,/,
Sun/NNP
reported/VBD
net/JJ
income/NN
of/IN
seven/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
26/CD
cents/NNS
a/DT
share/NN
a/DT
year/NN
earlier/RBR
./.
But/CC
the/DT
report/NN
was/VBD
better/JJR
than/IN
the/DT
flat/JJ
earnings/NNS
the/DT
company/NN
had/VBD
projected/VBN
this/DT
summer/NN
,/,
after/IN
reporting/VBG
a/DT
loss/NN
for/IN
its/PRP$
fiscal/JJ
fourth/JJ
quarter/NN
./.
Also/RB
,/,
Sun/NNP
's/POS
sales/NNS
in/IN
its/PRP$
first/JJ
quarter/NN
,/,
ended/VBN
Sept./NNP
29/CD
,/,
were/VBD
up/RB
39/CD
%/NN
from/IN
the/DT
year-earlier/JJ
period/NN
./.
MCI/NNP
lost/VBD
1\/4/CD
to/TO
42/CD
3\/4/CD
./.
In/IN
response/NN
to/TO
a/DT
similar/JJ
lawsuit/NN
by/IN
MCI/NNP
filed/VBN
earlier/RBR
,/,
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
sued/VBD
its/PRP$
competitor/NN
for/IN
misleading/VBG
advertising/NN
./.
Jaguar/NNP
fell/VBD
5\/8/CD
to/TO
11/CD
./.
General/NNP
Motors/NNP
said/VBD
it/PRP
is/VBZ
seeking/VBG
clearance/NN
to/TO
buy/VB
as/RB
much/JJ
as/IN
15/CD
%/NN
of/IN
the/DT
company/NN
./.
On/IN
Wednesday/NNP
,/,
Ford/NNP
Motor/NNP
said/VBD
it/PRP
had/VBD
already/RB
bought/VBN
12.45/CD
%/NN
of/IN
the/DT
British/JJ
company/NN
's/POS
shares/NNS
and/CC
may/MD
bid/VB
for/IN
the/DT
rest/NN
./.
Yesterday/NN
,/,
Ford/NNP
said/VBD
it/PRP
wo/MD
n't/RB
enter/VB
an/DT
unlimited/JJ
bidding/NN
war/NN
with/IN
GM/NNP
for/IN
Jaguar/NNP
's/POS
shares/NNS
./.
Buffets/NNS
slid/NNP
1/CD
to/TO
14/CD
after/IN
reporting/VBG
third-quarter/JJ
earnings/NNS
of/IN
17/CD
cents/NNS
a/DT
share/NN
,/,
one/CD
cent/NN
below/IN
the/DT
low/JJ
end/NN
of/IN
analysts/NNS
'/POS
estimates/NNS
./.
The/DT
company/NN
earned/VBD
14/CD
cents/NNS
a/DT
share/NN
in/IN
the/DT
year-earlier/JJ
period/NN
./.
Chartwell/NNP
Group/NNP
plunged/VBD
1/CD
1\/2/CD
to/TO
1/CD
1\/2/CD
after/IN
estimating/VBG
that/IN
it/PRP
had/VBD
a/DT
loss/NN
of/IN
about/RB
$/$
3.2/CD
million/CD
in/IN
the/DT
latest/JJS
third/JJ
quarter/NN
,/,
before/IN
a/DT
$/$
5,350,000/CD
addition/NN
to/TO
loss/NN
reserves/NNS
./.
The/DT
company/NN
also/RB
said/VBD
it/PRP
would/MD
n't/RB
make/VB
the/DT
semiannual/JJ
interest/NN
payment/NN
on/IN
its/PRP$
$/$
40/CD
million/CD
of/IN
7/CD
%/NN
convertible/JJ
subordinated/JJ
debentures/NNS
by/IN
the/DT
Nov./NNP
1/CD
due/JJ
date/NN
or/CC
within/IN
the/DT
grace/NN
period/NN
./.
It/PRP
blamed/VBD
softness/NN
in/IN
the/DT
interior-furnishings/NNS
industry/NN
for/IN
its/PRP$
financial/JJ
troubles/NNS
./.
Astec/NNP
Industries/NNP
tumbled/VBD
2/CD
1\/8/CD
to/TO
9/CD
7\/8/CD
after/IN
it/PRP
reported/VBD
a/DT
$/$
2.4/CD
million/CD
loss/NN
in/IN
the/DT
latest/JJS
third/JJ
quarter/NN
,/,
compared/VBN
with/IN
net/JJ
income/NN
of/IN
more/JJR
than/IN
$/$
1/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
The/DT
paving-equipment/NN
maker/NN
said/VBD
the/DT
loss/NN
was/VBD
caused/VBN
by/IN
bad/JJ
weather/NN
,/,
which/WDT
had/VBD
hurt/VBN
sales/NNS
in/IN
its/PRP$
Barber-Greene/NNP
Co./NNP
and/CC
Telsmith/NNP
Inc./NNP
units/NNS
./.
Foremost/NNP
Corp./NNP
of/IN
America/NNP
surged/VBD
2/CD
1\/8/CD
to/TO
36/CD
1\/2/CD
./.
The/DT
company/NN
's/POS
third-quarter/JJ
net/JJ
income/NN
rose/VBD
to/TO
eight/CD
cents/NNS
a/DT
share/NN
from/IN
five/CD
cents/NNS
a/DT
share/NN
the/DT
year/NN
before/RB
./.
The/DT
mobile-home/NN
insurer/NN
said/VBD
Hurricane/NNP
Hugo/NNP
cost/VBD
it/PRP
80/CD
cents/NNS
a/DT
share/NN
in/IN
the/DT
latest/JJS
quarter/NN
./.
Charter/NNP
One/CD
Financial/NNP
Inc./NNP
,/,
a/DT
bank/NN
holding/VBG
company/NN
,/,
expects/VBZ
to/TO
report/VB
that/DT
third-quarter/JJ
net/JJ
income/NN
jumped/VBD
30/CD
%/NN
to/TO
$/$
4.5/CD
million/CD
,/,
Charles/NNP
John/NNP
Koch/NNP
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
said/VBD
./.
On/IN
a/DT
per-share/JJ
basis/NN
,/,
earnings/NNS
are/VBP
estimated/VBN
at/IN
64/CD
cents/NNS
to/TO
66/CD
cents/NNS
./.
In/IN
the/DT
year-ago/JJ
quarter/NN
,/,
Charter/NNP
One/CD
earned/VBD
$/$
3.4/CD
million/CD
,/,
or/CC
51/CD
cents/NNS
a/DT
share/NN
./.
Last/JJ
year/NN
's/POS
figures/NNS
have/VBP
been/VBN
restated/VBN
to/TO
reflect/VB
the/DT
August/NNP
1989/CD
mergers/NNS
of/IN
Western/NNP
Reserve/NNP
Savings/NNP
Bank/NNP
in/IN
Cleveland/NNP
and/CC
First/NNP
Federal/NNP
Savings/NNP
of/IN
Akron/NNP
with/IN
Charter/NNP
One/CD
./.
In/IN
connection/NN
with/IN
the/DT
mergers/NNS
,/,
Charter/NNP
One/CD
issued/VBD
1,063,946/CD
common/JJ
shares/NNS
./.
The/DT
company/NN
currently/RB
has/VBZ
6.6/CD
million/CD
shares/NNS
outstanding/JJ
./.
In/IN
an/DT
interview/NN
,/,
the/DT
chief/JJ
executive/NN
attributed/VBD
the/DT
improved/JJ
results/NNS
to/TO
strength/NN
in/IN
its/PRP$
core/NN
operations/NNS
,/,
as/RB
well/RB
as/IN
higher/JJR
volume/NN
of/IN
loans/NNS
and/CC
fee/NN
income/NN
,/,
especially/RB
relating/VBG
to/TO
tax-deferred/JJ
annuities/NNS
./.
He/PRP
noted/VBD
that/IN
Charter/NNP
One/CD
also/RB
had/VBD
a/DT
more/RBR
profitable/JJ
loan/NN
mix/NN
,/,
with/IN
gains/NNS
in/IN
both/DT
consumer/NN
and/CC
commercial/JJ
loans/NNS
./.
The/DT
thrift/NN
's/POS
largest/JJS
loan/NN
category/NN
is/VBZ
residential/JJ
mortgages/NNS
./.
Because/IN
of/IN
the/DT
mergers/NNS
,/,
the/DT
company/NN
had/VBD
$/$
750,000/CD
in/IN
nonrecurring/JJ
expenses/NNS
in/IN
the/DT
latest/JJS
quarter/NN
./.
Those/DT
expenses/NNS
,/,
however/RB
,/,
were/VBD
offset/VBN
by/IN
a/DT
gain/NN
of/IN
about/RB
$/$
1.7/CD
million/CD
on/IN
the/DT
sale/NN
of/IN
35,000/CD
shares/NNS
of/IN
Federal/NNP
Home/NNP
Loan/NNP
Mortgage/NNP
Corp/NNP
./.
The/DT
company/NN
retains/VBZ
421,000/CD
shares/NNS
of/IN
Freddie/NNP
Mac/NNP
,/,
but/CC
expects/VBZ
to/TO
continue/VB
to/TO
sell/VB
about/RB
30,000/CD
shares/NNS
a/DT
quarter/NN
./.
For/IN
the/DT
year/NN
,/,
Mr./NNP
Koch/NNP
said/VBD
the/DT
company/NN
expects/VBZ
to/TO
earn/VB
$/$
13/CD
million/CD
,/,
or/CC
$/$
1.85/CD
to/TO
$/$
1.88/CD
a/DT
share/NN
,/,
up/RB
from/IN
a/DT
restated/JJ
$/$
9.5/CD
million/CD
a/DT
year/NN
ago/RB
./.
The/DT
company/NN
's/POS
book/NN
value/NN
as/IN
of/IN
Sept./NNP
30/CD
was/VBD
$/$
23.20/CD
a/DT
share/NN
,/,
up/RB
17/CD
%/NN
from/IN
a/DT
year/NN
ago/RB
./.
Mr./NNP
Koch/NNP
said/VBD
the/DT
increase/NN
was/VBD
due/JJ
in/IN
large/JJ
part/NN
to/TO
the/DT
addition/NN
of/IN
the/DT
two/CD
thrifts/NNS
./.
Mr./NNP
Koch/NNP
also/RB
said/VBD
that/IN
Ohio/NNP
's/POS
strong/JJ
economy/NN
has/VBZ
helped/VBN
Charter/NNP
One/CD
,/,
as/RB
well/RB
as/IN
other/JJ
thrifts/NNS
in/IN
the/DT
state/NN
./.
In/IN
a/DT
year/NN
when/WRB
scores/NNS
of/IN
such/JJ
institutions/NNS
failed/VBD
in/IN
Texas/NNP
,/,
Oklahoma/NNP
,/,
Arizona/NNP
and/CC
other/JJ
states/NNS
,/,
Mr./NNP
Koch/NNP
said/VBD
only/RB
a/DT
few/JJ
of/IN
Ohio/NNP
's/POS
221/CD
thrifts/NNS
have/VBP
failed/VBN
./.
``/``
The/DT
institutions/NNS
in/IN
Ohio/NNP
that/WDT
failed/VBD
were/VBD
primarily/RB
those/DT
that/WDT
made/VBD
loans/NNS
outside/IN
of/IN
Ohio/NNP
,/,
''/''
he/PRP
said/VBD
./.
``/``
Those/DT
that/WDT
have/VBP
succeeded/VBN
have/VBP
continued/VBN
to/TO
lend/VB
in/IN
local/JJ
areas/NNS
./.
''/''
In/IN
addition/NN
to/TO
Cleveland/NNP
and/CC
Akron/NNP
,/,
First/NNP
Federal/NNP
Savings/NNP
also/RB
serves/VBZ
the/DT
Youngstown/NNP
and/CC
Portsmouth/NNP
areas/NNS
and/CC
in/IN
Toledo/NN
operates/VBZ
under/IN
the/DT
name/NN
of/IN
People/NNP
's/POS
Savings/NNP
./.
Investors/NNS
ran/VBD
away/RB
from/IN
the/DT
stock/NN
market/NN
yesterday/NN
,/,
dumping/VBG
many/JJ
recently/RB
favored/VBN
stocks/NNS
as/IN
they/PRP
fled/VBD
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
fell/VBD
39.55/CD
to/TO
2613.73/CD
./.
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
volume/NN
rose/VBD
to/TO
175,240,000/CD
shares/NNS
from/IN
155.6/CD
million/CD
Wednesday/NNP
./.
Badly/RB
shaken/VBN
by/IN
recent/JJ
big/JJ
swings/NNS
in/IN
stock/NN
prices/NNS
and/CC
the/DT
cloudy/JJ
outlook/NN
for/IN
the/DT
economy/NN
,/,
investors/NNS
sold/VBD
many/JJ
of/IN
the/DT
consumer-oriented/JJ
blue/JJ
chips/NNS
that/WDT
were/VBD
the/DT
market/NN
's/POS
star/JJ
performers/NNS
only/RB
a/DT
week/NN
ago/RB
./.
Many/JJ
of/IN
those/DT
issues-such/JJ
as/IN
Philip/NNP
Morris/NNP
,/,
Procter/NNP
&/CC
Gamble/NNP
and/CC
Merck/NNP
--/:
are/VBP
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
./.
Traders/NNS
said/VBD
investors/NNS
were/VBD
either/RB
raising/VBG
cash/NN
or/CC
buying/VBG
very/RB
selectively/RB
./.
In/IN
a/DT
sign/NN
of/IN
just/RB
how/WRB
nervous/JJ
investors/NNS
are/VBP
,/,
precious-metals/NNS
stocks/NNS
were/VBD
among/IN
the/DT
best/JJS
performers/NNS
yesterday/NN
./.
Compaq/NNP
Computer/NNP
's/POS
disappointing/JJ
earnings/NNS
report/NN
after/IN
the/DT
market/NN
closed/VBD
Wednesday/NNP
set/VBD
the/DT
pace/NN
for/IN
the/DT
sell-off/NN
yesterday/NN
./.
Compaq/NNP
closed/VBD
down/RB
8/CD
5\/8/CD
to/TO
100/CD
on/IN
2.6/CD
million/CD
shares/NNS
./.
Compaq/NNP
,/,
a/DT
highly/RB
sought/VBN
stock/NN
only/RB
a/DT
few/JJ
days/NNS
ago/RB
,/,
hit/VBD
a/DT
record/JJ
high/NN
of/IN
112/CD
1\/2/CD
on/IN
Oct./NNP
19/CD
./.
Third-quarter/JJ
earnings/NNS
were/VBD
on/IN
the/DT
low/JJ
end/NN
of/IN
analysts/NNS
'/POS
forecasts/NNS
,/,

and/CC
the/DT
company/NN
disclosed/VBD
that/IN
it/PRP
had/VBD
uncovered/VBN
two/CD
technical/JJ
flaws/NNS
in/IN
Intel/NNP
's/POS
new/JJ
microprocessor/NN
,/,
which/WDT
could/MD
cause/VB
delays/NNS
in/IN
shipments/NNS
of/IN
some/DT
new/JJ
Compaq/NNP
products/NNS
./.
Intel/NNP
dropped/VBD
7\/8/CD
to/TO
32/CD
in/IN
over-the-counter/JJ
trading/NN
./.
``/``
When/WRB
you/PRP
see/VBP
what/WP
happened/VBD
to/TO
Compaq/VB
,/,
it/PRP
is/VBZ
completely/RB
(/(
numbing/JJ
)/)
for/IN
the/DT
mentality/NN
of/IN
the/DT
market/NN
,/,
''/''
said/VBD
Jack/NNP
Solomon/NNP
,/,
technical/JJ
analyst/NN
for/IN
Bear/NNP
Stearns/NNP
./.
``/``
It/PRP
is/VBZ
hard/JJ
for/IN
the/DT
mind/NN
to/TO
digest/VB
that/IN
what/WP
was/VBD
the/DT
leading/JJ
stock/NN
is/VBZ
now/RB
the/DT
one/NN
leading/VBG
you/PRP
down/IN
the/DT
tubes/NNS
./.
''/''
Investors/NNS
took/VBD
little/JJ
comfort/NN
in/IN
yesterday/NN
's/POS
report/NN
that/IN
third-quarter/JJ
gross/JJ
national/JJ
product/NN
grew/VBD
at/IN
a/DT
2.5/CD
%/NN
annual/JJ
rate/NN
./.
Though/IN
that/DT
growth/NN
was/VBD
in/IN
line/NN
with/IN
expectations/NNS
,/,
investors/NNS
focused/VBD
on/IN
signs/NNS
of/IN
a/DT
slowdown/NN
:/:
a/DT
buildup/NN
in/IN
inventories/NNS
and/CC
dubious/JJ
strength/NN
in/IN
consumer/NN
spending/NN
./.
Futures-related/JJ
selling/NN
pushed/VBD
the/DT
industrial/JJ
average/NN
about/RB
45/CD
points/NNS
lower/RBR
in/IN
the/DT
morning/NN
as/IN
rumors/NNS
about/RB
RJR/NNP
Nabisco/NNP
's/POS
pending/JJ
sale/NN
of/IN
its/PRP$
Del/NNP
Monte/NNP
foods/NNS
unit/NN
spread/VBD
through/IN
the/DT
trading/NN
pits/NNS
in/IN
Chicago/NNP
./.
The/DT
purchase/NN
of/IN
Del/NNP
Monte/NNP
is/VBZ
likely/JJ
to/TO
be/VB
financed/VBN
with/IN
junk/NN
bonds/NNS
or/CC
a/DT
bridge/NN
loan/NN
./.
The/DT
stock/NN
market/NN
has/VBZ
had/VBD
a/DT
heightened/JJ
concern/NN
about/IN
turmoil/NN
with/IN
high-risk/JJ
financing/NN
ever/RB
since/IN
Campeau/NNP
Corp./NNP
nearly/RB
missed/VBD
an/DT
interest/NN
payment/NN
on/IN
its/PRP$
junk/NN
bonds/NNS
in/IN
September/NNP
./.
While/IN
futures-related/JJ
sell/JJ
programs/NNS
depressed/VBD
prices/NNS
at/IN
first/JJ
,/,
buy/JJ
programs/NNS
pared/VBD
the/DT
industrial/JJ
average/NN
's/POS
losses/NNS
later/RB
in/IN
the/DT
session/NN
./.
However/RB
,/,
Donald/NNP
Selkin/NNP
,/,
head/NN
of/IN
futures/NNS
research/NN
at/IN
Prudential-Bache/NNP
Securities/NNP
,/,
said/VBD
that/IN
the/DT
stock/NN
market/NN
appears/VBZ
to/TO
be/VB
poised/VBN
for/IN
a/DT
round/NN
of/IN
futures-related/JJ
selling/NN
this/DT
morning/NN
,/,
given/VBN
the/DT
discrepancies/NNS
between/IN
futures/NNS
and/CC
stocks/NNS
at/IN
the/DT
close/NN
./.
The/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
started/VBD
trading/VBG
its/PRP$
new/JJ
``/``
basket/NN
''/''
product/NN
yesterday/NN
,/,
with/IN
which/WDT
institutions/NNS
can/MD
buy/VB
and/CC
sell/VB
all/PDT
the/DT
stocks/NNS
in/IN
the/DT
Standard/NNP
&/CC
Poor/NNP
's/POS
500-stock/JJ
index/NN
in/IN
one/CD
trade/NN
./.
About/RB
$/$
45/CD
million/CD
of/IN
stock/NN
traded/VBD
through/IN
the/DT
basket/NN
./.
In/IN
a/DT
sign/NN
of/IN
the/DT
credit/NN
needs/NNS
among/IN
market/NN
makers/NNS
during/IN
the/DT
190-point/JJ
plunge/NN
on/IN
Oct./NNP
13/CD
,/,
the/DT
Federal/NNP
Reserve/NNP
Bank/NNP
of/IN
New/NNP
York/NNP
said/VBD
yesterday/NN
that/IN
loans/NNS
by/IN
New/NNP
York/NNP
's/POS
nine/CD
largest/JJS
banks/NNS
for/IN
the/DT
financing/NN
of/IN
securities/NNS
positions/NNS
rose/VBD
$/$
786/CD
million/CD
,/,
to/TO
$/$
6.6/CD
billion/CD
during/IN
the/DT
week/NN
ending/VBG
Oct./NNP
18/CD
./.
Among/IN
other/JJ
computer/NN
stocks/NNS
,/,
International/NNP
Business/NNP
Machines/NNP
fell/VBD
1/CD
1\/8/CD
to/TO
100/CD
3\/4/CD
on/IN
1.7/CD
million/CD
shares/NNS
,/,
Digital/NNP
Equipment/NNP
droped/VBD
2/CD
1\/4/CD
to/TO
88/CD
and/CC
Unisys/NNP
lost/VBD
1\/2/CD
to/TO
17/CD
./.
Also/RB
,/,
Tandem/NNP
Computers/NNP
lost/VBD
1/CD
to/TO
24/CD
7\/8/CD
even/RB
though/IN
earnings/NNS
for/IN
the/DT
September/NNP
quarter/NN
were/VBD
in/IN
line/NN
with/IN
expectations/NNS
./.
Semiconductor/NN
issues/NNS
slumped/VBD
as/RB
well/RB
;/:
Texas/NNP
Instruments/NNP
dropped/VBD
1/CD
to/TO
31/CD
1\/2/CD
,/,
Motorola/NNP
fell/VBD
5\/8/CD
to/TO
55/CD
1\/4/CD
and/CC
Cypress/NNP
Semiconductor/NNP
lost/VBD
1\/2/CD
to/TO
12/CD
1\/4/CD
./.
Anheuser-Busch/NNP
slid/VBD
1\/2/CD
to/TO
38/CD
and/CC
led/VBD
the/DT
Big/NNP
Board/NNP
's/POS
list/NN
of/IN
most/JJS
active/JJ
issues/NNS
as/IN
4.3/CD
million/CD
shares/NNS
were/VBD
traded/VBN
./.
The/DT
stock/NN
had/VBD
plunged/VBN
4/CD
3\/8/CD
Wednesday/NNP
on/IN
the/DT
news/NN
of/IN
third-quarter/JJ
earnings/NNS
weakness/NN
and/CC
its/PRP$
discounting/NN
strategy/NN
,/,
which/WDT
it/PRP
expects/VBZ
to/TO
affect/VB
results/NNS
through/IN
the/DT
end/NN
of/IN
1990/CD
./.
Philip/NNP
Morris/NNP
fell/VBD
1/CD
7\/8/CD
to/TO
41/CD
5\/8/CD
on/IN
3.7/CD
million/CD
shares/NNS
,/,
reflecting/VBG
the/DT
possibility/NN
that/IN
Anheuser-Busch/NNP
's/POS
decision/NN
could/MD
have/VB
a/DT
negative/JJ
impact/NN
on/IN
results/NNS
at/IN
its/PRP$
Miller/NNP
Brewing/NNP
unit/NN
./.
Other/JJ
consumer/NN
stocks/NNS
coming/VBG
under/IN
selling/NN
pressure/NN
included/VBD
Procter/NNP
&/CC
Gamble/NNP
,/,
which/WDT
went/VBD
down/RB
3/CD
1\/4/CD
to/TO
126/CD
3\/4/CD
;/:
Coca-Cola/NNP
Co./NNP
,/,
down/RB
1/CD
3\/8/CD
to/TO
71/CD
1\/8/CD
,/,
McDonald/NNP
's/VBZ
,/,
down/RB
1\/4/CD
to/TO
31/CD
1\/4/CD
;/:
PepsiCo/NNP
,/,
off/RB
1/CD
to/TO
60/CD
3\/8/CD
,/,
and/CC
Merck/NNP
,/,
down/RB
1/CD
1\/2/CD
to/TO
76/CD
3\/4/CD
./.
Auto/NN
stocks/NNS
slumped/VBD
as/IN
each/DT
of/IN
the/DT
nation/NN
's/POS
Big/NNP
Three/NNP
auto/NN
makers/NNS
reported/VBD
that/IN
third-quarter/JJ
operating/NN
profits/NNS
were/VBD
down/RB
from/IN
1988/CD
./.
Ford/NNP
Motor/NNP
,/,
which/WDT
also/RB
said/VBD
it/PRP
expects/VBZ
results/NNS
for/IN
the/DT
fourth/JJ
quarter/NN
to/TO
be/VB
soft/JJ
because/RB
of/IN
a/DT
slowdown/NN
in/IN
auto/NN
sales/NNS
,/,
dropped/VBD
3\/8/CD
to/TO
47/CD
1\/2/CD
./.
General/NNP
Motors/NNP
lost/VBD
1\/2/CD
to/TO
44/CD
3\/8/CD
and/CC
Chrysler/NNP
slid/VBD
3\/8/CD
to/TO
22/CD
1\/4/CD
./.
Oil/NN
field-services/JJ
issues/NNS
were/VBD
especially/RB
weak/JJ
./.
Shearson/NNP
Lehman/NNP
Hutton/NNP
cut/VBD
short-term/JJ
investment/NN
ratings/NNS
on/IN
Schlumberger/NNP
,/,
which/WDT
went/VBD
down/RB
2/CD
1\/4/CD
to/TO
41/CD
1\/8/CD
;/:
Halliburton/NN
,/,
down/RB
1/CD
1\/8/CD
to/TO
35/CD
1\/8/CD
;/:
Dresser/NNP
Industries/NNP
,/,
off/RB
1/CD
to/TO
37/CD
3\/4/CD
,/,
and/CC
Baker/NNP
Hughes/NNP
,/,
down/RB
3\/4/CD
to/TO
21/CD
./.
Precious-metals/NNS
stocks/NNS
,/,
widely/RB
viewed/VBN
as/IN
a/DT
safe/JJ
investment/NN
haven/NN
in/IN
periods/NNS
of/IN
uncertainty/NN
,/,
posted/VBD
solid/JJ
gains/NNS
./.
Newmont/NNP
Gold/NNP
climbed/VBD
2/CD
1\/2/CD
to/TO
39/CD
,/,
Battle/NNP
Mountain/NNP
Gold/NNP
rose/VBD
1/CD
to/TO
16/CD
,/,
Hecla/NNP
Mining/NNP
went/VBD
up/RB
5\/8/CD
to/TO
13/CD
3\/8/CD
,/,
Homestake/NNP
Mining/NNP
added/VBD
5\/8/CD
to/TO
15/CD
3\/4/CD
and/CC
ASA/NNP
Ltd./NNP
rose/VBD
2/CD
to/TO
46/CD
./.
Tandy/NNP
fell/VBD
5\/8/CD
to/TO
43/CD
3\/8/CD
on/IN
1.8/CD
million/CD
shares/NNS
,/,
including/VBG
a/DT
1.5/CD
million-share/JJ
block/NN
that/WDT
the/DT
company/NN
repurchased/VBD
as/IN
part/NN
of/IN
an/DT
ongoing/JJ
buy-back/NN
program/NN
./.
The/DT
block/NN
equaled/VBD
1.7/CD
%/NN
of/IN
its/PRP$
shares/NNS
outstanding/JJ
./.
Nipsco/NNP
Industries/NNP
,/,
the/DT
owner/NN
of/IN
Northern/NNP
Indiana/NNP
Public/NNP
Service/NNP
,/,
rose/VBD
1\/2/CD
to/TO
17/CD
7\/8/CD
./.
Its/PRP$
board/NN
authorized/VBD
the/DT
repurchase/NN
of/IN
an/DT
additional/JJ
3.5/CD
million/CD
common/JJ
shares/NNS
,/,
or/CC
about/RB
5/CD
%/NN
of/IN
its/PRP$
shares/NNS
outstanding/JJ
,/,
under/IN
an/DT
ongoing/JJ
buy-back/NN
program/NN
./.
N.V/NNP
./.
Philips/NNP
,/,
whose/WP$
third-quarter/JJ
net/JJ
profit/NN
was/VBD
up/RB
41/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
,/,
added/VBD
1\/2/CD
to/TO
22/CD
1\/4/CD
./.
Also/RB
,/,
the/DT
company/NN
said/VBD
it/PRP
would/MD
file/VB
for/IN
an/DT
initial/JJ
offering/NN
of/IN
a/DT
20/CD
%/NN
stake/NN
in/IN
its/PRP$
Polygram/NNP
unit/NN
,/,
as/IN
expected/VBN
./.
Imperial/NNP
Chemical/NNP
Industries/NNP
plunged/VBD
6/CD
1\/4/CD
to/TO
69/CD
7\/8/CD
./.
The/DT
company/NN
's/POS
third-quarter/JJ
pretax/JJ
profit/NN
was/VBD
12/CD
%/NN
lower/JJR
than/IN
the/DT
year-ago/JJ
level/NN
and/CC
fell/VBD
short/RB
of/IN
its/PRP$
expectations/NNS
./.
Quantum/NNP
Chemical/NNP
,/,
which/WDT
reported/VBD
a/DT
loss/NN
for/IN
the/DT
third/JJ
quarter/NN
,/,
dropped/VBD
1/CD
1\/2/CD
to/TO
33/CD
1\/4/CD
./.
The/DT
company/NN
also/RB
suspended/VBN
payment/NN
of/IN
cash/NN
dividends/NNS
on/IN
its/PRP$
common/JJ
stock/NN
until/IN
at/IN
least/JJS
next/JJ
April/NNP
;/:
it/PRP
plans/VBZ
to/TO
pay/VB
stock/NN
dividends/NNS
instead/RB
./.
Telerate/NNP
,/,
which/WDT
said/VBD
it/PRP
is/VBZ
holding/VBG
talks/NNS
with/IN
Dow/NNP
Jones/NNP
about/IN
the/DT
latter/NN
's/POS
$/$
18-a-share/JJ
takeover/NN
offer/NN
,/,
advanced/VBD
7\/8/CD
to/TO
20/CD
1\/2/CD
./.
Earlier/RBR
this/DT
month/NN
,/,
a/DT
special/JJ
committee/NN
of/IN
Telerate/NNP
's/POS
board/NN
rejected/VBD
the/DT
bid/NN
as/IN
inadequate/JJ
./.
The/DT
American/NNP
Stock/NNP
Exchange/NNP
Market/NNP
Value/NNP
Index/NNP
fell/VBD
2.44/CD
to/TO
373.48/CD
./.
Volume/NN
totaled/VBD
12,190,000/CD
shares/NNS
./.
La/NNP
Jolla/NNP
Bancorp/NNP
climbed/VBD
3/CD
to/TO
13/CD
./.
Security/NNP
Pacific/NNP
signed/VBD
a/DT
letter/NN
of/IN
intent/NN
to/TO
acquire/VB
the/DT
company/NN
in/IN
a/DT
stock/NN
swap/NN
valued/VBN
at/IN
$/$
15/CD
a/DT
share/NN
./.
Lawyers/NNS
for/IN
former/JJ
Housing/NNP
and/CC
Urban/NNP
Development/NNP
Secretary/NNP
Samuel/NNP
Pierce/NNP
say/VB
he/PRP
again/RB
will/MD
refuse/VB
to/TO
answer/VB
questions/NNS
from/IN
a/DT
congressional/JJ
subcommittee/NN
investigating/VBG
federal/JJ
housing/NN
scandals/NNS
./.
In/IN
a/DT
letter/NN
to/TO
Rep./NNP
Tom/NNP
Lantos/NNP
D./NNP
,/,
Calif./NNP
chairman/NN
of/IN
the/DT
House/NNP
Government/NNP
Operations/NNP
subcommittee/NN
on/IN
housing/NN
and/CC
employment/NN
,/,
the/DT
lawyers/NNS
said/VBD
Mr./NNP
Pierce/NNP
would/MD
invoke/VB
his/PRP$
Fifth/NNP
Amendment/NNP
protection/NN
against/IN
self-incrimination/NN
at/IN
hearings/NNS
scheduled/VBN
for/IN
today/NN
and/CC
Friday/NNP
./.
On/IN
Sept./NNP
26/CD
,/,
Mr./NNP
Pierce/NNP
invoked/VBD
the/DT
Fifth/NNP
Amendment/NNP
and/CC
refused/VBD
to/TO
testify/VB
./.
At/IN
that/DT
time/NN
,/,
he/PRP
said/VBD
his/PRP$
lawyers/NNS
had/VBD
n't/RB
been/VBN
given/VBN
enough/JJ
time/NN
to/TO
prepare/VB
./.
The/DT
letter/NN
sent/VBN
yesterday/NN
to/TO
Mr./NNP
Lantos/NNP
says/VBZ
Mr./NNP
Pierce/NNP
``/``
is/VBZ
concerned/JJ
that/IN
there/EX
continues/VBZ
to/TO
be/VB
an/DT
atmosphere/NN
wherein/WRB
he/PRP
remains/VBZ
a/DT
target/NN
of/IN
the/DT
subcommittee/NN
's/POS
hearings/NNS
./.
''/''
In/IN
the/DT
letter/NN
,/,
lawyers/NNS
Paul/NNP
Perito/NNP
,/,
Robert/NNP
Plotkin/NNP
and/CC
Inez/NNP
Smith/NNP
say/VBP
they/PRP
``/``
hope/VBP
that/IN
sometime/RB
in/IN
the/DT
near/JJ
future/NN
the/DT
present/JJ
level/NN
of/IN
tension/NN
may/MD
be/VB
reduced/VBN
such/JJ
that/IN
Mr./NNP
Pierce/NNP
can/MD
reconsider/VB
his/PRP$
present/JJ
position/NN
and/CC
testify/VB
under/IN
fair/JJ
and/CC
mutually/RB
agreeable/JJ
circumstances/NNS
./.
''/''
Accor/NNP
S.A./NNP
of/IN
France/NNP
withdrew/VBD
from/IN
an/DT
agreement/NN
to/TO
acquire/VB
a/DT
51/CD
%/NN
stake/NN
in/IN
Greetings/NNP
Group/NNP
Ltd./NNP
,/,
an/DT
Australian/JJ
hotel/NN
operator/NN
./.
A/DT
spokesman/NN
for/IN
Credit/NNP
Lyonnais/NNP
May/NNP
Mellor/NNP
Ltd./NNP
,/,
Accor/NNP
's/POS
Australian/JJ
financial/JJ
adviser/NN
,/,
said/VBD
in/IN
a/DT
telephone/NN
interview/NN
that/IN
Accor/NNP
``/``
decided/VBD
that/IN
the/DT
deal/NN
as/RB
originally/RB
structured/VBN
was/VBD
n't/RB
suitable/JJ
./.
''/''
But/CC
negotiations/NNS
are/VBP
continuing/VBG
and/CC
a/DT
new/JJ
agreement/NN
might/MD
be/VB
reached/VBN
next/JJ
month/NN
,/,
the/DT
spokesman/NN
added/VBD
./.
``/``
Accor/NNP
would/MD
still/RB
like/VB
to/TO
have/VB
a/DT
presence/NN
in/IN
Australia/NNP
,/,
and/CC
alternative/JJ
arrangements/NNS
are/VBP
being/VBG
considered/VBN
,/,
''/''
the/DT
spokesman/NN
said/VBD
./.
He/PRP
would/MD
n't/RB
discuss/VB
any/DT
details/NNS
of/IN
the/DT
new/JJ
proposals/NNS
./.
In/IN
September/NNP
,/,
Accor/NNP
entered/VBD
into/IN
an/DT
option/NN
agreement/NN
with/IN
major/JJ
shareholders/NNS
of/IN
Greetings/NNS
that/WDT
would/MD
have/VB
given/VBN
Accor/NNP
a/DT
51/CD
%/NN
stake/NN
through/IN
an/DT
issue/NN
of/IN
new/JJ
shares/NNS
./.
Britain/NNP
's/POS
Monopolies/NNP
and/CC
Mergers/NNP
Commission/NNP
said/VBD
the/DT
proposed/JJ
#/#
395/CD
million/CD
$/$
637.7/CD
million/CD
acquisition/NN
of/IN
Tootal/NNP
Group/NNP
PLC/NNP
by/IN
Coats/NNP
Viyella/NNP
PLC/NNP
,/,
a/DT
U.K./NNP
textile/NN
manufacturer/NN
,/,
could/MD
go/VB
ahead/RB
pending/VBG
certain/JJ
conditions/NNS
./.
The/DT
commission/NN
said/VBD
Coats/NNS
must/MD
first/RB
dispose/VB
of/IN
its/PRP$
interest/NN
in/IN
Britain/NNP
's/POS
domestic/JJ
sewing/NN
thread/NN
industry/NN
and/CC
its/PRP$
shares/NNS
in/IN
the/DT
Gutermann/NNP
Group/NNP
./.
The/DT
panel/NN
was/VBD
concerned/JJ
that/IN
the/DT
merger/NN
of/IN
the/DT
two/CD
groups/NNS
would/MD
damage/VB
competition/NN
in/IN
British/JJ
markets/NNS
for/IN
industrial/JJ
and/CC
domestic/JJ
sewing/NN
thread/NN
and/CC
clothing/NN
./.
Coats/NNP
has/VBZ
offered/VBN
one/CD
ordinary/JJ
Coats/NNP
share/NN
and/CC
400/CD
pence/NNS
in/IN
cash/NN
for/IN
every/DT
four/CD
shares/NNS
in/IN
Tootal/NNP
,/,
which/WDT
is/VBZ
the/DT
equivalent/NN
of/IN
138.4/CD
pence/NNS
per/IN
share/NN
./.
President/NNP
Bush/NNP
unveiled/VBD
food-safety/JJ
proposals/NNS
that/WDT
would/MD
significantly/RB
increase/VB
the/DT
penalties/NNS
for/IN
the/DT
misuse/NN
of/IN
pesticides/NNS
./.
Under/IN
the/DT
plan/NN
,/,
released/VBN
at/IN
a/DT
White/NNP
House/NNP
briefing/NN
yesterday/NN
,/,
the/DT
civil/JJ
penalty/NN
for/IN
the/DT
illegal/JJ
sale/NN
,/,
distribution/NN
or/CC
commercial/JJ
use/NN
of/IN
a/DT
pesticide/NN
would/MD
be/VB
raised/VBN
to/TO
a/DT
maximum/JJ
$/$
25,000/CD
a/DT
day/NN
for/IN
each/DT
violation/NN
./.
Currently/RB
,/,
the/DT
maximum/JJ
civil/JJ
fine/NN
is/VBZ
$/$
5,000/CD
a/DT
violation/NN
./.
Criminal/JJ
violations/NNS
would/MD
be/VB
raised/VBN
to/TO
felonies/NNS
from/IN
misdemeanors/NNS
./.
At/IN
the/DT
same/JJ
time/NN
,/,
reporting/NN
requirements/NNS
would/MD
be/VB
increased/VBN
for/IN
farmers/NNS
and/CC
others/NNS
who/WP
use/VBP
pesticides/NNS
that/WDT
have/VBP
restricted/JJ
uses/NNS
./.
The/DT
Environmental/NNP
Protection/NNP
Agency/NNP
also/RB
would/MD
get/VB
greater/JJR
inspection/NN
authority/NN
./.
The/DT
package/NN
also/RB
contains/VBZ
proposals/NNS
that/WDT
would/MD
speed/VB
the/DT
removal/NN
of/IN
harmful/JJ
pesticides/NNS
from/IN
the/DT
market/NN
and/CC
would/MD
provide/VB
for/IN
the/DT
establishment/NN
of/IN
consistent/JJ
``/``
negligible/JJ
risk/NN
''/''
levels/NNS
for/IN
pesticides/NNS
in/IN
fresh/JJ
and/CC
processed/JJ
food/NN
./.
Chemicals/NNS
that/WDT
posed/VBD
risks/NNS
greater/JJR
than/IN
these/DT
levels/NNS
generally/RB
would/MD
be/VB
barred/VBN
,/,
unless/IN
the/DT
EPA/NNP
determined/VBD
that/IN
other/JJ
factors/NNS
,/,
such/JJ
as/IN
the/DT
economic/JJ
effect/NN
on/IN
consumers/NNS
,/,
outweighed/VBD
the/DT
risk/NN
./.
The/DT
proposals/NNS
also/RB
are/VBP
designed/VBN
to/TO
bar/NN
states/NNS
in/IN
most/JJS
cases/NNS
from/IN
setting/VBG
more-stringent/JJ
pesticide/NN
tolerance/NN
levels/NNS
than/IN
the/DT
federal/JJ
government/NN
sets/NNS
./.
Information/NN
released/VBN
yesterday/NN
,/,
however/RB
,/,
indicates/VBZ
that/IN
states/NNS
could/MD
seek/VB
waivers/NNS
and/CC
set/VB
their/PRP$
own/JJ
levels/NNS
if/IN
special/JJ
circumstances/NNS
exist/VBP
./.
Prince/NNP
,/,
the/DT
rock/NN
star/NN
,/,
is/VBZ
indecent/JJ
,/,
according/VBG
to/TO
the/DT
Federal/NNP
Communications/NNP
Comission/NNP
./.
At/IN
least/JJS
before/IN
8/CD
p.m/RB
./.
The/DT
FCC/NNP
proposed/VBD
to/TO
fine/VB
KLUC-FM/NNP
,/,
in/IN
Las/NNP
Vegas/NNP
,/,
$/$
2,000/CD
for/IN
playing/VBG
the/DT
Prince/NNP
song/NN
``/``
Erotic/NNP
City/NNP
''/''
on/IN
May/NNP
16/CD
,/,
1988/CD
,/,
at/IN
7:53/CD
p.m./NN
because/IN
the/DT
song/NN
is/VBZ
allegedly/RB
indecent/JJ
./.
By/IN
FCC/NNP
standards/NNS
,/,
that/WDT
means/VBZ
the/DT
song/NN
uses/VBZ
``/``
patently/RB
offensive/JJ
''/''
terms/NNS
to/TO
describe/VB
``/``
sexual/JJ
or/CC
excretory/JJ
activities/NNS
or/CC
organs/NNS
./.
''/''
``/``
Erotic/NNP
City/NNP
,/,
''/''
which/WDT
was/VBD
released/VBN
as/IN
a/DT
single/NN
in/IN
1984/CD
and/CC
sold/VBD
250,000/CD
copies/NNS
,/,
is/VBZ
certainly/RB
hot/JJ
--/:
too/RB
hot/JJ
for/IN
this/DT
newspaper/NN
to/TO
reproduce/VB
the/DT
lyrics/NNS
./.
Suffice/VB
it/PRP
to/TO
say/VB
,/,
the/DT
song/NN
uses/VBZ
a/DT
short/JJ
word/NN
for/IN
sexual/JJ
congress/NN
,/,
and/CC
congress/NN
is/VBZ
in/IN
session/NN
a/DT
lot/NN
during/IN
the/DT
song/NN
./.
An/DT
agent/NN
for/IN
Prince/NNP
did/VBD
n't/RB
return/VB
a/DT
telephone/NN
call/NN
seeking/VBG
comment/NN
./.
And/CC
KLUC/NNP
,/,
a/DT
part/NN
of/IN
Nationwide/NNP
Communications/NNP
Inc./NNP
,/,
could/MD
n't/RB
be/VB
reached/VBN
./.
The/DT
Las/NNP
Vegas/NNP
telephone/NN
directory/NN
only/RB
lists/VBZ
KLUC/NNP
's/POS
``/``
Concert/NNP
Hot/NNP
Line/NNP
''/''
--/:
and/CC
no/DT
one/NN
answered/VBD
the/DT
Hot/NNP
Line/NNP
at/IN
midday/NN
yesterday/NN
./.
But/CC
the/DT
proposed/JJ
fine/NN
is/VBZ
bound/VBN
to/TO
be/VB
controversial/JJ
./.
For/IN
one/CD
thing/NN
,/,
the/DT
FCC/NNP
dismissed/VBD
51/CD
complaints/NNS
about/IN
indecency/NN
because/IN
the/DT
programs/NNS
aired/VBD
material/NN
after/IN
8/CD
p.m./RB
--/:
only/RB
seven/CD
minutes/NNS
after/IN
KLUC/NNP
played/VBD
``/``
Erotic/NNP
City/NNP
./.
''/''
The/DT
FCC/NNP
now/RB
says/VBZ
8/CD
p.m./RB
is/VBZ
the/DT
time/NN
that/WDT
is/VBZ
all/RB
right/JJ
to/TO
begin/VB
airing/VBG
indecent/JJ
material/NN
because/IN
children/NNS
are/VBP
n't/RB
likely/RB
listening/VBG
in/IN
great/JJ
numbers/NNS
./.
Earlier/RBR
,/,
the/DT
agency/NN
set/VBD
the/DT
decency/NN
line/NN
at/IN
midnight/NN
,/,
but/CC
an/DT
appeals/NNS
court/NN
rejected/VBD
that/DT
time/NN
as/RB
too/RB
restrictive/JJ
./.
``/``
You/PRP
have/VBP
to/TO
draw/VB
some/DT
lines/NNS
,/,
''/''
said/VBD
Robert/NNP
Pettit/NNP
,/,
the/DT
FCC/NNP
's/POS
general/JJ
counsel/NN
./.
Tom/NNP
Chiusano/NNP
,/,
vice/NN
president/NN
and/CC
general/JJ
manager/NN
of/IN
WXRK-FM/NNP
in/IN
New/NNP
York/NNP
,/,
said/VBD
the/DT
FCC/NNP
decision/NN
singling/VBG
out/RP
KLUC/NNP
seemed/VBD
unfair/JJ
because/IN
he/PRP
estimated/VBD
probably/RB
500/CD
radio/NN
stations/NNS
have/VBP
played/VBN
``/``
Erotic/NNP
City/NNP
./.
''/''
But/CC
Mr./NNP
Chiusano/NNP
has/VBZ
his/PRP$
own/JJ
problems/NNS
./.
The/DT
FCC/NNP
also/RB
sent/VBD
WXRK/NNP
a/DT
letter/NN
saying/VBG
it/PRP
believed/VBD
one/CD
of/IN
its/PRP$
shows/NNS
,/,
the/DT
Howard/NNP
Stern/NNP
Show/NNP
,/,
contained/VBD
indecent/JJ
material/NN
./.
The/DT
agency/NN
has/VBZ
n't/RB
yet/RB
proposed/VBN
a/DT
fine/NN
for/IN
WXRK/NNP
./.
But/CC
two/CD
years/NNS
ago/RB
,/,
when/WRB
the/DT
agency/NN
began/VBD
its/PRP$
crackdown/NN
on/IN
indecency/NN
,/,
Mr./NNP
Stern/NNP
's/POS
show/NN
,/,
which/WDT
features/VBZ
a/DT
lot/NN
of/IN
gross/JJ
jokes/NNS
,/,
was/VBD
one/CD
of/IN
the/DT
shows/NNS
cited/VBN
in/IN
the/DT
agency/NN
's/POS
first/JJ
warning/NN
letters/NNS
to/TO
broadcasters/NNS
./.
``/``
Howard/NNP
Stern/NNP
does/VBZ
n't/RB
broadcast/VB
indecent/JJ
material/NN
,/,
''/''
said/VBD
Mr./NNP
Chiusano/NNP
./.
``/``
He/PRP
does/VBZ
four/CD
hours/NNS
of/IN
contemporaneous/JJ
humor/NN
./.
''/''
So/RB
far/RB
the/DT
indecency/NN
crackdown/NN
has/VBZ
managed/VBN
to/TO
offend/VB
both/DT
civil/JJ
libertarians/NNS
,/,
who/WP
say/VBP
the/DT
FCC/NNP
has/VBZ
gone/VBN
too/RB
far/RB
,/,
and/CC
Congress/NNP
,/,
which/WDT
says/VBZ
the/DT
FCC/NNP
has/VBZ
n't/RB
gone/VBN
far/RB
enough/RB
./.
Meanwhile/RB
the/DT
courts/NNS
have/VBP
rejected/VBN
most/JJS
of/IN
the/DT
FCC/NNP
's/POS
plans/NNS
,/,
and/CC
the/DT
agency/NN
has/VBZ
been/VBN
subject/JJ
to/TO
constant/JJ
ridicule/NN
./.
One/CD
commissioner/NN
even/RB
proposed/VBD
banning/VBG
a/DT
reading/NN
of/IN
James/NNP
Joyce/NNP
's/POS
``/``
Ulysses/NN
''/''
until/IN
cooler/JJR
heads/NNS
prevailed/VBD
./.
But/CC
the/DT
agency/NN
has/VBZ
n't/RB
given/VBN
up/RP
./.
In/IN
addition/NN
to/TO
citing/VBG
the/DT
stations/NNS
in/IN
New/NNP
York/NNP
and/CC
Las/NNP
Vegas/NNP
,/,
the/DT
FCC/NNP
proposed/VBD
fining/VBG
radio/NN
stations/NNS
in/IN
Miami/NNP
and/CC
Los/NNP
Angeles/NNP
for/IN
airing/NN
allegedly/RB
indecent/JJ
material/NN
before/IN
8/CD
p.m/RB
./.
In/IN
addition/NN
,/,
the/DT
agency/NN
said/VBD
it/PRP
would/MD
begin/VB
a/DT
proceeding/NN
to/TO
see/VB
whether/IN
it/PRP
was/VBD
possible/JJ
to/TO
find/VB
legal/JJ
grounds/NNS
for/IN
a/DT
ban/NN
on/IN
indecent/JJ
programming/NN
around/IN
the/DT
clock/NN
./.
RENAISSANCE/NNP
INVESTMENT/NNP
MANAGEMENT/NNP
Inc./NNP
has/VBZ
standing/JJ
agreements/NNS
with/IN
several/JJ
brokerage/NN
firms/NNS
to/TO
execute/VB
block/JJ
trades/NNS
,/,
and/CC
designates/VBZ
one/CD
of/IN
those/DT
firms/NNS
as/RB
principal/JJ
to/TO
handle/VB
each/DT
of/IN
those/DT
trades/NNS
./.
Yesterday/NN
's/POS
edition/NN
incorrectly/RB
said/VBD
Renaissance/NNP
solicits/VBZ
brokerage/NN
firms/NNS
for/IN
the/DT
best/JJS
price/NN
to/TO
carry/VB
out/RP
its/PRP$
trades/NNS
./.
Renaissance/NNP
Said/VBN
to/TO
Dip/VB
One/CD
Foot/NN
Into/IN
Stocks/NNS
Again/RB
''/''
--/:
WSJ/NNP
Oct./NNP
26/CD
,/,
1989/CD
)/)
McDonnell/NNP
Douglas/NNP
Corp./NNP
reported/VBD
a/DT
54/CD
%/NN
drop/NN
in/IN
third-quarter/JJ
net/JJ
income/NN
,/,
but/CC
its/PRP$
Douglas/NNP
Aircraft/NNP
Co./NNP
subsidiary/NN
appears/VBZ
to/TO
be/VB
fixing/VBG
some/DT
of/IN
its/PRP$
problems/NNS
./.
Douglas/NNP
Aircraft/NNP
completed/VBD
a/DT
restructuring/NN
in/IN
the/DT
third/JJ
quarter/NN
but/CC
clearly/RB
is/VBZ
still/RB
adjusting/VBG
to/TO
the/DT
jolt/NN
./.
The/DT
subsidiary/NN
posted/VBD
a/DT
$/$
3/CD
million/CD
loss/NN
for/IN
the/DT
quarter/NN
,/,
but/CC
that/DT
was/VBD
after/IN
a/DT
one-time/JJ
pretax/JJ
gain/NN
of/IN
$/$
25/CD
million/CD
stemming/VBG
from/IN
an/DT
insurance/NN
payment/NN
./.
``/``
They/PRP
lost/VBD
$/$
28/CD
million/CD
,/,
but/CC
that/DT
is/VBZ
good/JJ
news/NN
,/,
''/''
said/VBD
Jack/NNP
Modzelewski/NNP
,/,
a/DT
PaineWebber/NNP
Inc./NNP
analyst/NN
,/,
who/WP
had/VBD
expected/VBN
Douglas/NNP
's/POS
loss/NN
to/TO
be/VB
as/RB
much/JJ
as/IN
$/$
50/CD
million/CD
./.
In/IN
the/DT
second/JJ
quarter/NN
,/,
the/DT
subsidiary/NN
had/VBD
a/DT
$/$
158/CD
million/CD
loss/NN
./.
At/IN
least/JJS
,/,
Mr./NNP
Modzelewski/NNP
said/VBD
,/,
``/``
it/PRP
's/VBZ
losing/VBG
money/NN
at/IN
a/DT
decelerating/VBG
rate/NN
./.
''/''
Indeed/RB
,/,
while/IN
investors/NNS
were/VBD
n't/RB
exactly/RB
gleeful/JJ
,/,
McDonnell/NNP
Douglas/NNP
held/VBD
steady/RB
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
closing/VBG
yesterday/NN
at/IN
$/$
67.125/CD
a/DT
share/NN
,/,
unchanged/JJ
./.
McDonnell/NNP
Douglas/NNP
posted/VBD
third-quarter/JJ
net/NN
of/IN
$/$
38/CD
million/CD
,/,
or/CC
98/CD
cents/NNS
a/DT
share/NN
,/,
down/RB
from/IN
$/$
83/CD
million/CD
,/,
or/CC
$/$
2.18/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
The/DT
latest/JJS
results/NNS
include/VBP
an/DT
extraordinary/JJ
gain/NN
of/IN
$/$
6/CD
million/CD
,/,
or/CC
14/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
the/DT
divestiture/NN
of/IN
the/DT
bulk/NN
of/IN
the/DT
company/NN
's/POS
information/NN
systems/NNS
group/NN
./.
In/IN
the/DT
year-earlier/JJ
period/NN
,/,
the/DT
company/NN
had/VBD
a/DT
$/$
4/CD
million/CD
loss/NN
from/IN
discontinued/JJ
operations/NNS
./.
Sales/NNS
for/IN
the/DT
St./NNP
Louis-based/JJ
aircraft/NN
and/CC
defense/NN
company/NN
rose/VBD
1.1/CD
%/NN
to/TO
$/$
3.72/CD
billion/CD
from/IN
$/$
3.68/CD
billion/CD
./.
Besides/IN
the/DT
troubles/NNS
at/IN
Douglas/NNP
--/:
which/WDT
continued/VBD
to/TO
be/VB
plagued/VBN
by/IN
high/JJ
development/NN
costs/NNS
on/IN
the/DT
new/JJ
MD-11/NNP
tri-jet/NN
and/CC
parts/NNS
shortages/NNS
--/:
McDonnell/NNP
Douglas/NNP
's/POS
combat/NN
aircraft/NN
segment/NN
also/RB
had/VBD
its/PRP$
difficulties/NNS
./.
Profits/NNS
for/IN
the/DT
division/NN
tumbled/VBD
to/TO
$/$
67/CD
million/CD
from/IN
$/$
91/CD
million/CD
,/,
primarily/RB
because/IN
of/IN
reduced/JJ
earnings/NNS
for/IN
its/PRP$
AH-64/NNP
Apache/NNP
helicopter/NN
and/CC
write-downs/NNS
on/IN
several/JJ
other/JJ
helicopter/NN
programs/NNS
./.
These/DT
more/RBR
than/RB
offset/VBD
an/DT
improved/JJ
financial/JJ
performance/NN
by/IN
the/DT
F-15/NNP
fighter/NN
./.
Earnings/NNS
were/VBD
also/RB
off/RB
33/CD
%/NN
in/IN
the/DT
missiles/NNS
,/,
space/NN
and/CC
electronic-systems/NNS
segment/NN
,/,
despite/IN
a/DT
13/CD
%/NN
rise/NN
in/IN
revenue/NN
./.
Mr./NNP
Modzelewski/NNP
,/,
while/IN
noting/VBG
that/IN
times/NNS
are/VBP
tough/JJ
for/IN
arms/NNS
makers/NNS
,/,
said/VBD
he/PRP
expected/VBD
McDonnell/NNP
Douglas/NNP
's/POS
Pentagon-related/JJ
projects/NNS
to/TO
``/``
bounce/VB
back/RP
next/JJ
quarter/NN
''/''
to/TO
some/DT
degree/NN
./.
A/DT
number/NN
of/IN
defense-oriented/JJ
aerospace/NN
companies/NNS
,/,
including/VBG
Northrop/NNP
Corp./NNP
and/CC
General/NNP
Dynamics/NNP
Corp./NNP
,/,
have/VBP
reported/VBN
either/DT
flat/JJ
or/CC
lower/JJR
third-quarter/JJ
earnings/NNS
./.
But/CC
the/DT
biggest/JJS
question/NN
mark/NN
remains/VBZ
Douglas/NNP
./.
Deliveries/NNS
of/IN
its/PRP$
MD-80/NNP
jetliner/NN
,/,
which/WDT
competes/VBZ
primarily/RB
with/IN
Boeing/NNP
Co./NNP
's/POS
737/CD
series/NN
,/,
jumped/VBD
to/TO
30/CD
in/IN
the/DT
third/JJ
quarter/NN
,/,
from/IN
24/CD
in/IN
the/DT
second/JJ
period/NN
and/CC
28/CD
a/DT
year/NN
earlier/RB
./.
Losses/NNS
on/IN
the/DT
program/NN
narrowed/VBD
to/TO
$/$
1/CD
million/CD
in/IN
the/DT
latest/JJS
quarter/NN
from/IN
$/$
34/CD
million/CD
in/IN
the/DT
second/JJ
period/NN
./.
Company/NN
officials/NNS
boast/VBP
that/IN
Douglas/NNP
could/MD
account/VB
for/IN
half/NN
of/IN
McDonnell/NNP
Douglas/NNP
revenues/NNS
by/IN
1992/CD
,/,
compared/VBN
with/IN
about/RB
a/DT
third/NN
now/RB
./.
Besides/IN
the/DT
MD-80/NNP
and/CC
MD-11/NNP
commercial/JJ
jetliners/NNS
,/,
Douglas/NNP
is/VBZ
building/VBG
the/DT
T-45/NNP
Navy/NNP
trainer/NN
and/CC
C-17/NNP
military/JJ
transport/NN
./.
But/CC
whether/IN
things/NNS
at/IN
the/DT
Long/NNP
Beach/NNP
,/,
Calif./NNP
,/,
subsidiary/NN
can/MD
really/RB
be/VB
turned/VBN
around/RB
has/VBZ
yet/RB
to/TO
be/VB
seen/VBN
./.
``/``
Douglas/NNP
is/VBZ
improving/VBG
,/,
''/''
said/VBD
Judith/NNP
Comeau/NNP
,/,
analyst/NN
at/IN
Goldman/NNP
Sachs/NNP
&/CC
Co./NNP
,/,
``/``
but/CC
they/PRP
're/VBP
no/RB
where/WRB
near/IN
where/WRB
they/PRP
need/VBP
to/TO
be/VB
./.
''/''
Delta/NNP
Air/NNP
Lines/NNP
,/,
in/IN
a/DT
move/NN
that/WDT
could/MD
help/VB
it/PRP
thwart/VB
the/DT
kind/NN
of/IN
takeover/NN
attempts/NNS
that/WDT
have/VBP
bedeviled/VBN
other/JJ
airlines/NNS
this/DT
year/NN
,/,
agreed/VBD
to/TO
sell/VB
about/RB
5/CD
%/NN
of/IN
its/PRP$
stock/NN
to/TO
Singapore/NNP
Airlines/NNP
Ltd/NNP
./.
It/PRP
was/VBD
the/DT
second/JJ
such/JJ
transaction/NN
for/IN
the/DT
Atlanta-based/JJ
airline/NN
,/,
which/WDT
this/DT
summer/NN
sold/VBD
a/DT
5/CD
%/NN
stake/NN
to/TO
Swissair/NNP
and/CC
placed/VBD
another/DT
14/CD
%/NN
of/IN
its/PRP$
stock/NN
in/IN
employees/NNS
'/POS
hands/NNS
./.
As/IN
part/NN
of/IN
a/DT
10-year/JJ
marketing/NN
agreement/NN
with/IN
Singapore/NNP
Airlines/NNP
announced/VBD
yesterday/NN
,/,
Delta/NNP
also/RB
agreed/VBD
to/TO
spend/VB
about/RB
$/$
183/CD
million/CD
--/:
the/DT
same/JJ
amount/NN
Singapore/NNP
Airlines/NNP
will/MD
spend/VB
for/IN
its/PRP$
Delta/NNP
shares/NNS
--/:
to/TO
buy/VB
a/DT
similar/JJ
stake/NN
in/IN
Singapore/NNP
Airlines/NNP
./.
Delta/NNP
would/MD
n't/RB
comment/VB
on/IN
whether/IN
the/DT
moves/NNS
were/VBD
anti-takeover/JJ
measures/NNS
./.
But/CC
they/PRP
come/VBP
after/IN
a/DT
period/NN
during/IN
which/WDT
three/CD
of/IN
the/DT
carrier/NN
's/POS
largest/JJS
rivals/NNS
were/VBD
the/DT
subject/NN
of/IN
takeover/NN
bids/NNS
./.
With/IN
its/PRP$
fat/JJ
profits/NNS
,/,
low/JJ
debt/NN
levels/NNS
and/CC
steady/JJ
growth/NN
,/,
Delta/NNP
has/VBZ
been/VBN
considered/VBN
by/IN
Wall/NNP
Street/NNP
analysts/NNS
as/IN
likely/JJ
prey/NN
for/IN
corporate/JJ
raiders/NNS
./.
Its/PRP$
shares/NNS
have/VBP
risen/VBN
nearly/RB
15/CD
%/NN
over/IN
the/DT
past/JJ
six/CD
months/NNS
./.
Yesterday/NN
,/,
it/PRP
closed/VBD
at/IN
$/$
66.375/CD
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
down/RB
12.5/CD
cents/NNS
./.
Under/IN
the/DT
terms/NNS
of/IN
equity/NN
cross-purchase/JJ
agreements/NNS
,/,
Singapore/NNP
Airlines/NNP
agreed/VBD
to/TO
buy/VB
2.5/CD
million/CD
shares/NNS
of/IN
Delta/NNP
common/JJ
stock/NN
for/IN
110/CD
%/NN
of/IN
its/PRP$
closing/NN
price/NN
for/IN
the/DT
four/CD
days/NNS
surrounding/VBG
its/PRP$
purchase/NN
announcement/NN
./.
Delta/NNP
agreed/VBD
to/TO
buy/VB
the/DT
same/JJ
dollar/NN
amount/NN
of/IN
Singapore/NNP
Airlines/NNP
shares/NNS
./.
Singapore/NNP
Airlines/NNP
also/RB
agreed/VBD
not/RB
to/TO
transfer/VB
its/PRP$
Delta/NNP
shares/NNS
and/CC
to/TO
vote/VB
those/DT
shares/NNS
in/IN
the/DT
same/JJ
proportion/NN
as/IN
all/DT
other/JJ
shares/NNS
are/VBP
voted/VBN
or/CC
as/RB
recommended/VBN
by/IN
Delta/NNP
's/POS
board/NN
./.
Delta/NNP
made/VBD
a/DT
similar/JJ
pact/NN
regarding/VBG
its/PRP$
Singapore/NNP
Airlines/NNP
holdings/NNS
./.
As/IN
part/NN
of/IN
the/DT
10-year/JJ
marketing/NN
agreement/NN
,/,
the/DT
two/CD
airlines/NNS
also/RB
plan/VBP
to/TO
coordinate/VB
their/PRP$
schedules/NNS
and/CC
possibly/RB
operate/VBP
joint/JJ
service/NN
on/IN
certain/JJ
routes/NNS
./.
An/DT
added/JJ
benefit/NN
for/IN
Delta/NNP
is/VBZ
that/DT
its/PRP$
agreement/NN
with/IN
Singapore/NNP
Airlines/NNP
provides/VBZ
a/DT
toehold/NN
in/IN
the/DT
Pacific/NNP
,/,
where/WRB
U.S./NNP
airlines/NNS
face/VBP
the/DT
best/JJS
possibility/NN
of/IN
expansion/NN
./.
U.S./NNP
health/NN
officials/NNS
granted/VBD
long-deferred/JJ
access/NN
to/TO
the/DT
drug/NN
AZT/NNP
for/IN
children/NNS
with/IN
acquired/JJ
immune/JJ
deficiency/NN
syndrome/NN
./.
Louis/NNP
Sullivan/NNP
,/,
secretary/NN
of/IN
Health/NNP
and/CC
Human/NNP
Services/NNP
,/,
announced/VBD
the/DT
move/NN
by/IN
the/DT
Food/NNP
and/CC
Drug/NNP
Administration/NNP
after/IN
two/CD
years/NNS
of/IN
restricted/JJ
access/NN
for/IN
the/DT
youngest/JJS
AIDS/NNP
patients/NNS
to/TO
the/DT
only/RB
anti-viral/JJ
drug/NN
yet/RB
cleared/VBD
to/TO
treat/VB
the/DT
fatal/JJ
disease/NN
./.
The/DT
drug/NN
was/VBD
given/VBN
treatment/NN
investigational/JJ
new/JJ
drug/NN
status/NN
,/,
which/WDT
is/VBZ
a/DT
label/NN
given/VBN
to/TO
drugs/NNS
that/WDT
lack/VBP
formal/JJ
approval/NN
but/CC
are/VBP
thought/VBN
to/TO
be/VB
believed/VBN
effective/JJ
against/IN
a/DT
life-threatening/JJ
disease/NN
./.
Under/IN
the/DT
designation/NN
,/,
the/DT
drug/NN
's/POS
maker/NN
,/,
Burroughs/NNP
Wellcome/NNP
Co./NNP
,/,
will/MD
give/VB
the/DT
drug/NN
free/JJ
of/IN
charge/NN
for/IN
a/DT
time/NN
to/TO
children/NNS
with/IN
the/DT
disease/NN
and/CC
symptoms/NNS
of/IN
advanced/JJ
infection/NN
./.
Burroughs/NNP
Wellcome/NNP
is/VBZ
a/DT
unit/NN
of/IN
Wellcome/NNP
PLC/NNP
,/,
London/NNP
./.
Dr./NNP
Sullivan/NNP
said/VBD
the/DT
FDA/NNP
action/NN
``/``
will/MD
give/VB
many/JJ
sick/JJ
children/NNS
access/NN
to/TO
a/DT
drug/NN
that/WDT
offers/VBZ
promise/NN
for/IN
improving/VBG
or/CC
even/RB
extending/VBG
their/PRP$
lives/NNS
./.
''/''
Adults/NNS
with/IN
AIDS/NNP
have/VBP
had/VBD
access/NN
to/TO
AZT/NNP
since/IN
the/DT
FDA/NNP
approved/VBD
the/DT
drug/NN
's/POS
usage/NN
for/IN
adults/NNS
in/IN
March/NNP
1987/CD
./.
But/CC
despite/IN
nearly/RB
two/CD
years/NNS
of/IN
research/NN
showing/VBG
AZT/NNP
can/MD
relieve/VB
symptoms/NNS
in/IN
children/NNS
,/,
the/DT
drug/NN
still/RB
lacks/VBZ
federal/JJ
approval/NN
for/IN
their/PRP$
use/NN
./.
As/IN
a/DT
result/NN
,/,
many/JJ
youngsters/NNS
were/VBD
unable/JJ
to/TO
obtain/VB
the/DT
drug/NN
and/CC
,/,
for/IN
the/DT
few/JJ
exceptions/NNS
,/,
insurance/NN
carriers/NNS
would/MD
n't/RB
cover/VB
its/PRP$
$/$
6,400/CD
annual/JJ
cost/NN
./.
AIDS/NNP
has/VBZ
stricken/VBN
1,859/CD
children/NNS
under/IN
age/NN
13/CD
,/,
with/IN
many/JJ
times/NNS
that/IN
number/NN
believed/VBN
to/TO
carry/VB
the/DT
infection/NN
without/IN
symptoms/NNS
./.
To/TO
date/NN
,/,
1,013/CD
of/IN
those/DT
children/NNS
have/VBP
died/VBN
,/,
according/VBG
to/TO
the/DT
Centers/NNP
for/IN
Disease/NNP
Control/NNP
./.
Pilots/NNS
of/IN
Federal/NNP
Express/NNP
Corp./NNP
voted/VBD
to/TO
reject/VB
affiliation/NN
with/IN
the/DT
Air/NNP
Line/NNP
Pilots/NNP
Association/NNP
,/,
giving/VBG
a/DT
resounding/JJ
victory/NN
to/TO
the/DT
company/NN
's/POS
founder/NN
and/CC
chairman/NN
,/,
Frederick/NNP
W./NNP
Smith/NNP
./.
In/IN
the/DT
National/NNP
Mediation/NNP
Board/NNP
election/NN
,/,
709/CD
pilots/NNS
voted/VBD
to/TO
support/VB
the/DT
union/NN
,/,
out/IN
of/IN
a/DT
total/JJ
electorate/NN
of/IN
2,022/CD
Federal/NNP
Express/NNP
aviators/NNS
./.
The/DT
results/NNS
were/VBD
unexpectedly/RB
dismal/JJ
for/IN
the/DT
pro-union/JJ
side/NN
,/,
especially/RB
given/VBN
that/IN
some/RB
960/CD
eligible/JJ
voters/NNS
were/VBD
former/JJ
Tiger/NNP
International/NNP
Inc./NNP
pilots/NNS
who/WP
had/VBD
been/VBN
longtime/JJ
ALPA/NNP
members/NNS
./.
Federal/NNP
Express/NNP
bought/VBD
Tiger/NNP
in/IN
February/NNP
for/IN
$/$
880/CD
million/CD
./.
``/``
We/PRP
're/VBP
stunned/VBN
,/,
''/''
said/VBD
Barney/NNP
Barnhardt/NNP
,/,
a/DT
captain/NN
and/CC
leader/NN
of/IN
the/DT
pro-ALPA/JJ
campaign/NN
./.
``/``
Apparently/RB
,/,
we/PRP
lost/VBD
a/DT
lot/NN
of/IN
the/DT
Tiger/NNP
votes/NNS
./.
I/PRP
do/VBP
n't/RB
know/VB
why/WRB
./.
''/''
Mr./NNP
Smith/NNP
had/VBD
campaigned/VBN
hard/RB
against/IN
the/DT
union/NN
,/,
insisting/VBG
in/IN
company/NN
materials/NNS
that/IN
a/DT
union/NN
would/MD
infuse/VB
unnecessary/JJ
confict/NN
into/IN
the/DT
company/NN
's/POS
employee/NN
relations/NNS
./.
A/DT
pilots/NNS
'/POS
union/NN
would/MD
have/VB
been/VBN
Federal/NNP
Express/NNP
's/POS
first/JJ
major/JJ
collective/JJ
bargaining/NN
unit/NN
in/IN
the/DT
U.S./NNP
,/,
and/CC
company/NN
executives/NNS
had/VBD
feared/VBN
that/IN
it/PRP
would/MD
soften/VB
Federal/NNP
's/POS
gung-ho/JJ
,/,
customer-driven/JJ
culture/NN
./.
``/``
The/DT
company/NN
feels/VBZ
very/RB
gratified/JJ
''/''
with/IN
the/DT
vote/NN
,/,
said/VBD
T./NNP
Allan/NNP
McArtor/NNP
,/,
Federal/NNP
's/POS
senior/JJ
vice/NN
president/NN
,/,
air/NN
operations/NNS
./.
``/``
We/PRP
like/VBP
to/TO
think/VB
that/IN
the/DT
Federal/NNP
Express/NNP
management/NN
can/MD
deal/VB
directly/RB
with/IN
its/PRP$
pilots/NNS
without/IN
a/DT
union/NN
's/POS
intervention/NN
./.
''/''
Mr./NNP
Smith/NNP
,/,
through/IN
a/DT
spokesman/NN
,/,
declined/VBD
to/TO
be/VB
interviewed/VBN
yesterday/NN
./.
In/IN
Washington/NNP
,/,
ALPA/NNP
issued/VBD
a/DT
statement/NN
saying/VBG
the/DT
union/NN
was/VBD
``/``
disappointed/JJ
''/''
with/IN
the/DT
election/NN
's/POS
outcome/NN
./.
It/PRP
said/VBD
it/PRP
filed/VBD
an/DT
objection/NN
with/IN
the/DT
National/NNP
Mediation/NNP
Board/NNP
,/,
protesting/VBG
``/``
improprieties/NNS
''/''
in/IN
the/DT
vote/NN
./.
Specifically/RB
,/,
the/DT
union/NN
is/VBZ
contending/VBG
,/,
among/IN
other/JJ
charges/NNS
,/,
that/IN
Federal/NNP
Express/NNP
misled/VBD
pilots/NNS
by/IN
calling/VBG
the/DT
Flight/NNP
Crewmembers/NNP
Handbook/NNP
a/DT
valid/JJ
contract/NN
./.
Mr./NNP
Barnhardt/NNP
said/VBD
Federal/NNP
was/VBD
apparently/RB
successful/JJ
in/IN
its/PRP$
effort/NN
to/TO
persuade/VB
former/JJ
Tiger/NNP
pilots/NNS
to/TO
give/VB
the/DT
company/NN
a/DT
chance/NN
without/IN
a/DT
union/NN
./.
The/DT
company/NN
had/VBD
told/VBN
pilots/NNS
that/IN
it/PRP
's/VBZ
much/RB
easier/JJR
to/TO
vote/VB
in/IN
a/DT
union/NN
than/IN
to/TO
vote/VB
one/CD
out/RP
./.
``/``
It/PRP
looks/VBZ
like/IN
the/DT
`/``
let's-give-it-a-year/JJ
campaign/NN
'/''
worked/VBD
,/,
''/''
said/VBD
Mr./NNP
Barnhardt/NNP
./.
As/IN
for/IN
the/DT
veteran/JJ
Federal/NNP
pilots/NNS
,/,
Mr./NNP
Barnhardt/NNP
said/VBD
the/DT
pro-union/JJ
side/NN
had/VBD
counted/VBN
on/IN
getting/VBG
at/IN
least/JJS
100/CD
of/IN
them/PRP
to/TO
support/VB
ALPA/NNP
./.
But/CC
it/PRP
seems/VBZ
many/RB
fewer/JJR
than/IN
that/DT
actually/RB
voted/VBD
for/IN
the/DT
union/NN
,/,
probably/RB
because/IN
of/IN
fears/NNS
that/IN
union/NN
rules/NNS
would/MD
hurt/VB
them/PRP
in/IN
their/PRP$
battle/NN
over/IN
seniority/NN
issues/NNS
against/IN
the/DT
former/JJ
Tiger/NNP
pilots/NNS
./.
Depending/VBG
on/IN
how/WRB
a/DT
mediator/NN
reconciles/VBZ
the/DT
different/JJ
job/NN
classifications/NNS
of/IN
Federal/NNP
and/CC
Tiger/NNP
,/,
Federal/NNP
Express/NNP
still/RB
faces/VBZ
possible/JJ
union/NN
elections/NNS
this/DT
fall/NN
among/IN
airplane/NN
mechanics/NNS
,/,
ramp/NN
workers/NNS
and/CC
stock/NN
clerks/NNS
./.
In/IN
composite/JJ
trading/NN
yesterday/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Federal/NNP
's/POS
shares/NNS
closed/VBD
at/IN
$/$
52/CD
,/,
down/RB
12.5/CD
cents/NNS
./.
Thursday/NNP
,/,
October/NNP
26/CD
,/,
1989/CD
The/DT
key/JJ
U.S./NNP
and/CC
foreign/JJ
annual/JJ
interest/NN
rates/NNS
below/RB
are/VBP
a/DT
guide/NN
to/TO
general/JJ
levels/NNS
but/CC
do/VBP
n't/RB
always/RB
represent/VB
actual/JJ
transactions/NNS
./.
PRIME/JJ
RATE/NN
:/:
10/CD
1\/2/CD
%/NN
./.
The/DT
base/JJ
rate/NN
on/IN
corporate/JJ
loans/NNS
at/IN
large/JJ
U.S./NNP
money/NN
center/NN
commercial/JJ
banks/NNS
./.
FEDERAL/JJ
FUNDS/NNS
:/:
8/CD
13\/16/CD
%/NN
high/JJ
,/,
8/CD
11\/16/CD
%/NN
low/JJ
,/,
8/CD
11\/16/CD
%/NN
near/IN
closing/NN
bid/NN
,/,
8/CD
3\/4/CD
%/NN
offered/VBN
./.
Reserves/NNS
traded/VBN
among/IN
commercial/JJ
banks/NNS
for/IN
overnight/JJ
use/NN
in/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
or/CC
more/JJR
./.
Source/NN
:/:
Fulton/NNP
Prebon/NNP
U.S.A/NNP
./.
Inc/NNP
./.
DISCOUNT/NN
RATE/NN
:/:
7/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
depository/JJ
institutions/NNS
by/IN
the/DT
New/NNP
York/NNP
Federal/NNP
Reserve/NNP
Bank/NNP
./.
CALL/JJ
MONEY/NN
:/:
9/CD
3\/4/CD
%/NN
to/TO
10/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
brokers/NNS
on/IN
stock/NN
exchange/NN
collateral/NN
./.
COMMERCIAL/JJ
PAPER/NN
placed/VBN
directly/RB
by/IN
General/NNP
Motors/NNP
Acceptance/NNP
Corp./NNP
:/:
8.45/CD
%/NN
30/CD
to/TO
44/CD
days/NNS
;/:
8.20/CD
%/NN
45/CD
to/TO
66/CD
days/NNS
;/:
8.325/CD
%/NN
67/CD
to/TO
89/CD
days/NNS
;/:
8.05/CD
%/NN
90/CD
to/TO
119/CD
days/NNS
;/:
7.875/CD
%/NN
120/CD
to/TO
149/CD
days/NNS
;/:
7.75/CD
%/NN
150/CD
to/TO
179/CD
days/NNS
;/:
7.50/CD
%/NN
180/CD
to/TO
270/CD
days/NNS
./.
COMMERCIAL/JJ
PAPER/NN
:/:
High-grade/JJ
unsecured/JJ
notes/NNS
sold/VBN
through/IN
dealers/NNS
by/IN
major/JJ
corporations/NNS
in/IN
multiples/NNS
of/IN
$/$
1,000/CD
:/:
8.55/CD
%/NN
30/CD
days/NNS
;/:
8.45/CD
%/NN
60/CD
days/NNS
;/:
8.40/CD
%/NN
90/CD
days/NNS
./.
CERTIFICATES/NNS
OF/IN
DEPOSIT/NN
:/:
8.09/CD
%/NN
one/CD
month/NN
;/:
8.04/CD
%/NN
two/CD
months/NNS
;/:
8.03/CD
%/NN
three/CD
months/NNS
;/:
7.96/CD
%/NN
six/CD
months/NNS
;/:
7.92/CD
%/NN
one/CD
year/NN
./.
Average/NN
of/IN
top/JJ
rates/NNS
paid/VBN
by/IN
major/JJ
New/NNP
York/NNP
banks/NNS
on/IN
primary/JJ
new/JJ
issues/NNS
of/IN
negotiable/JJ
C.D.s/NNS
,/,
usually/RB
on/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
and/CC
more/JJR
./.
The/DT
minimum/JJ
unit/NN
is/VBZ
$/$
100,000/CD
./.
Typical/JJ
rates/NNS
in/IN
the/DT
secondary/JJ
market/NN
:/:
8.55/CD
%/NN
one/CD
month/NN
;/:
8.50/CD
%/NN
three/CD
months/NNS
;/:
8.45/CD
%/NN
six/CD
months/NNS
./.
BANKERS/NNS
ACCEPTANCES/NNS
:/:
8.48/CD
%/NN
30/CD
days/NNS
;/:
8.32/CD
%/NN
60/CD
days/NNS
;/:
8.30/CD
%/NN
90/CD
days/NNS
;/:
8.12/CD
%/NN
120/CD
days/NNS
;/:
8.02/CD
%/NN
150/CD
days/NNS
;/:
7.94/CD
%/NN
180/CD
days/NNS
./.
Negotiable/JJ
,/,
bank-backed/JJ
business/NN
credit/NN
instruments/NNS
typically/RB
financing/VBG
an/DT
import/NN
order/NN
./.
LONDON/NNP
LATE/JJ
EURODOLLARS/NNS
:/:
8/CD
11\/16/CD
%/NN
to/TO
8/CD
9\/16/CD
%/NN
one/CD
month/NN
;/:
8/CD
9\/16/CD
%/NN
to/TO
8/CD
7\/16/CD
%/NN
two/CD
months/NNS
;/:
8/CD
5\/8/CD
%/NN
to/TO
8/CD
1\/2/CD
%/NN
three/CD
months/NNS
;/:
8/CD
9\/16/CD
%/NN
to/TO
8/CD
7\/16/CD
%/NN
four/CD
months/NNS
;/:
8/CD
7\/16/CD
%/NN
to/TO
8/CD
5\/16/CD
%/NN
five/CD
months/NNS
;/:
8/CD
7\/16/CD
%/NN
to/TO
8/CD
5\/16/CD
%/NN
six/CD
months/NNS
./.
LONDON/NNP
INTERBANK/NNP
OFFERED/JJ
RATES/NNS
LIBOR/NNP
8/CD
11\/16/CD
%/NN
one/CD
month/NN
;/:
8/CD
5\/8/CD
%/NN
three/CD
months/NNS
;/:
8/CD
7\/16/CD
%/NN
six/CD
months/NNS
;/:
8/CD
3\/8/CD
%/NN
one/CD
year/NN
./.
The/DT
average/NN
of/IN
interbank/NN
offered/VBN
rates/NNS
for/IN
dollar/NN
deposits/NNS
in/IN
the/DT
London/NNP
market/NN
based/VBN
on/IN
quotations/NNS
at/IN
five/CD
major/JJ
banks/NNS
./.
FOREIGN/JJ
PRIME/JJ
RATES/NNS
:/:
Canada/NNP
13.50/CD
%/NN
;/:
Germany/NNP
9/CD
%/NN
;/:
Japan/NNP
4.875/CD
%/NN
;/:
Switzerland/NN
8.50/CD
%/NN
;/:
Britain/NNP
15/CD
%/NN
./.
These/DT
rate/NN
indications/NNS
are/VBP
n't/RB
directly/RB
comparable/JJ
;/:
lending/NN
practices/NNS
vary/VBP
widely/RB
by/IN
location/NN
./.
TREASURY/NNP
BILLS/NNS
:/:
Results/NNS
of/IN
the/DT
Monday/NNP
,/,
October/NNP
23/CD
,/,
1989/CD
,/,
auction/NN
of/IN
short-term/JJ
U.S./NNP
government/NN
bills/NNS
,/,
sold/VBN
at/IN
a/DT
discount/NN
from/IN
face/NN
value/NN
in/IN
units/NNS
of/IN
$/$
10,000/CD
to/TO
$/$
1/CD
million/CD
:/:
7.52/CD
%/NN
13/CD
weeks/NNS
;/:
7.50/CD
%/NN
26/CD
weeks/NNS
./.
FEDERAL/NNP
HOME/NNP
LOAN/NNP
MORTGAGE/NNP
CORP/NNP
./.
Freddie/NNP
Mac/NNP
yields/NNS
on/IN
30-year/JJ
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days./NN
9.77/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
7.875/CD
%/NN
,/,
2/CD
%/NN
rate/NN
capped/VBD
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNP
Inc/NNP
./.
FEDERAL/NNP
NATIONAL/NNP
MORTGAGE/NNP
ASSOCIATION/NNP
Fannie/NNP
Mae/NNP
yields/NNS
on/IN
30/CD
year/NN
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
par/NN
9.70/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
8.65/CD
%/NN
,/,
6\/2/CD
rate/NN
capped/VBD
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNP
Inc/NNP
./.
MERRILL/NNP
LYNCH/NNP
READY/NNP
ASSETS/NNP
TRUST/NNP
:/:
8.65/CD
%/NN
./.
Annualized/JJ
average/JJ
rate/NN
of/IN
return/NN
after/IN
expenses/NNS
for/IN
the/DT
past/JJ
30/CD
days/NNS
;/:
not/RB
a/DT
forecast/NN
of/IN
future/JJ
returns/NNS
./.
UAL/NNP
Corp./NNP
's/POS
third-quarter/JJ
net/JJ
income/NN
fell/VBD
72/CD
%/NN
,/,
but/CC
that/DT
reflected/VBD
a/DT
large/JJ
year-earlier/JJ
special/JJ
gain/NN
and/CC
sizable/JJ
expense/NN
this/DT
year/NN
for/IN
stock/NN
appreciation/NN
rights/NNS
tied/VBN
to/TO
recent/JJ
takeover/NN
activity/NN
./.
UAL/NNP
,/,
parent/NN
of/IN
United/NNP
Airlines/NNP
,/,
said/VBD
net/JJ
income/NN
fell/VBD
to/TO
$/$
110.9/CD
million/CD
,/,
or/CC
$/$
5.11/CD
a/DT
share/NN
,/,
from/IN
$/$
402.4/CD
million/CD
,/,
or/CC
$/$
18.68/CD
a/DT
share/NN
./.
The/DT
year-earlier/JJ
quarter/NN
included/VBD
a/DT
one-time/JJ
after-tax/JJ
gain/NN
of/IN
$/$
223.4/CD
million/CD
from/IN
the/DT
sale/NN
of/IN
interests/NNS
in/IN
its/PRP$
computerized/JJ
reservations/NNS
partnership/NN
,/,
Covia/NNP
./.
The/DT
company/NN
said/VBD
its/PRP$
third-quarter/JJ
results/NNS
reflected/VBD
the/DT
recent/JJ
sharp/JJ
climb/NN
in/IN
UAL/NNP
stock/NN
to/TO
$/$
282/CD
a/DT
share/NN
as/IN
of/IN
Sept./NNP
29/CD
,/,
sparked/VBN
by/IN
bids/NNS
from/IN
Los/NNP
Angeles/NNP
investor/NN
Marvin/NNP
Davis/NNP
and/CC
a/DT
labor-management/JJ
buy-out/NN
group/NN
./.
UAL/NNP
's/POS
board/NN
approved/VBD
the/DT
labor-management/JJ
bid/NN
Sept./NNP
14/CD
./.
But/CC
the/DT
bid/NN
collapsed/VBD
two/CD
weeks/NNS
ago/RB
,/,
and/CC
the/DT
stock/NN
has/VBZ
dropped/VBN
sharply/RB
since/RB
./.
Thus/RB
,/,
UAL/NNP
said/VBD
it/PRP
expects/VBZ
to/TO
reverse/VB
most/JJS
of/IN
the/DT
stock/NN
appreciation/NN
expenses/NNS
in/IN
the/DT
fourth/JJ
quarter/NN
./.
The/DT
stock/NN
appreciation/NN
rights/NNS
are/VBP
related/VBN
to/TO
stock/NN
options/NNS
that/WDT
UAL/NNP
officers/NNS
hold/VBP
./.
As/IN
the/DT
value/NN
of/IN
UAL/NNP
stock/NN
rises/VBZ
,/,
the/DT
company/NN
must/MD
reflect/VB
this/DT
in/IN
its/PRP$
accounting/NN
methods/NNS
as/IN
an/DT
increased/JJ
expense/NN
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
UAL/NNP
shares/NNS
rose/VBD
$/$
9.75/CD
to/TO
$/$
170.75/CD
on/IN
volume/NN
of/IN
1.1/CD
million/CD
shares/NNS
./.
Excluding/VBG
the/DT
stock/NN
appreciation/NN
expense/NN
this/DT
year/NN
and/CC
the/DT
special/JJ
gain/NN
last/JJ
year/NN
,/,
per-share/JJ
earnings/NNS
would/MD
have/VB
been/VBN
$/$
6.74/CD
in/IN
the/DT
third/JJ
quarter/NN
,/,
compared/VBN
with/IN
$/$
8.31/CD
./.
Most/JJS
industry/NN
analysts/NNS
expected/VBD
UAL/NNP
to/TO
report/VB
third-quarter/JJ
earnings/NNS
of/IN
around/RB
$/$
7/CD
a/DT
share/NN
./.
Third-quarter/JJ
revenue/NN
rose/VBD
7/CD
%/NN
to/TO
$/$
2.58/CD
billion/CD
from/IN
$/$
2.41/CD
billion/CD
./.
Third-quarter/JJ
traffic/NN
was/VBD
up/RB
3/CD
%/NN
to/TO
19.3/CD
billion/CD
revenue/NN
passenger/NN
miles/NNS
from/IN
18.8/CD
billion/CD
in/IN
the/DT
year/NN
earlier/RBR
./.
A/DT
revenue/NN
passenger/NN
mile/NN
is/VBZ
one/CD
paying/VBG
passenger/NN
flown/VBN
one/CD
mile/NN
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
net/JJ
income/NN
fell/VBD
71/CD
%/NN
to/TO
$/$
317.3/CD
million/CD
,/,
or/CC
$/$
14.66/CD
a/DT
share/NN
,/,
from/IN
$/$
1.1/CD
billion/CD
,/,
or/CC
$/$
34.35/CD
a/DT
share/NN
,/,
which/WDT
includes/VBZ
the/DT
gain/NN
from/IN
the/DT
sale/NN
of/IN
Covia/NNP
interests/NNS
./.
Revenue/NN
increased/VBD
10/CD
%/NN
to/TO
$/$
7.43/CD
billion/CD
from/IN
$/$
6.76/CD
billion/CD
./.
Traffic/NN
was/VBD
nearly/RB
flat/JJ
at/IN
52.8/CD
billion/CD
revenue/NN
passenger/NN
miles/NNS
vs./IN
52.6/CD
billion/CD
miles/NNS
a/DT
year/NN
earlier/RBR
./.
Separately/RB
,/,
the/DT
leadership/NN
of/IN
UAL/NNP
's/POS
machinists/NNS
union/NN
met/VBD
to/TO
discuss/VB
the/DT
possibility/NN
of/IN
proposing/VBG
a/DT
recapitalization/NN
to/TO
UAL/NNP
's/POS
board/NN
./.
The/DT
leadership/NN
came/VBD
to/TO
no/DT
conclusion/NN
,/,
and/CC
discussions/NNS
will/MD
continue/VB
./.
The/DT
board/NN
said/VBD
Monday/NNP
it/PRP
believes/VBZ
the/DT
company/NN
should/MD
remain/VB
independent/JJ
for/IN
now/RB
./.
Takeover/NN
stock/NN
traders/NNS
and/CC
other/JJ
investors/NNS
,/,
however/RB
,/,
have/VBP
been/VBN
pushing/VBG
for/IN
some/DT
form/NN
of/IN
recapitalization/NN
to/TO
regain/VB
the/DT
losses/NNS
they/PRP
suffered/VBD
when/WRB
the/DT
labor-management/NN
bid/NN
collapsed/VBD
./.
When/WRB
Adolph/NNP
Coors/NNP
Co./NNP
announced/VBD
the/DT
appointment/NN
of/IN
William/NNP
Coors/NNP
as/IN
president/NN
late/RB
Wednesday/NNP
,/,
Peter/NNP
Coors/NNP
was/VBD
n't/RB
promoted/VBN
--/:
at/IN
least/JJS
not/RB
officially/RB
./.
But/CC
the/DT
announcement/NN
by/IN
the/DT
big/JJ
Golden/NNP
,/,
Colo./NNP
,/,
brewer/NN
was/VBD
an/DT
implicit/JJ
statement/NN
of/IN
Peter/NNP
Coor/NNP
's/POS
rising/VBG
role/NN
at/IN
the/DT
company/NN
,/,
analysts/NNS
say/VBP
./.
It/PRP
also/RB
underscores/VBZ
the/DT
difficult/JJ
task/NN
ahead/RB
as/IN
Coors/NNS
attempts/VBZ
to/TO
purchase/VB
Stroh/NNP
Brewery/NNP
Co./NNP
and/CC
fight/VB
off/RP
increasingly/RB
tough/JJ
competition/NN
from/IN
Anheuser-Busch/NNP
Cos/NNP
./.
The/DT
latest/JJS
management/NN
shuffling/NN
at/IN
Coors/NNP
seemed/VBD
to/TO
focus/VB
on/IN
Jeffrey/NNP
Coors/NNP
,/,
who/WP
will/MD
relinquish/VB
the/DT
president/NN
's/POS
post/NN
to/TO
his/PRP$
uncle/NN
William/NNP
,/,
who/WP
is/VBZ
73/CD
./.
The/DT
elder/JJR
Coors/NNP
has/VBZ
been/VBN
chairman/NN
since/IN
1970/CD
./.
Jeffrey/NNP
,/,
who/WP
at/IN
44/CD
is/VBZ
one/CD
year/NN
older/JJR
than/IN
his/PRP$
brother/NN
Peter/NNP
,/,
will/MD
head/VB
up/RP
Coors/NNP
Technology/NNP
Co./NNP
,/,
a/DT
small/JJ
unit/NN
he/PRP
has/VBZ
run/VBN
for/IN
several/JJ
years/NNS
./.
But/CC
Coors/NNP
insists/VBZ
the/DT
administrative/JJ
changes/NNS
wo/MD
n't/RB
really/RB
shift/VB
responsibilities/NNS
at/IN
the/DT
company/NN
./.
Indeed/RB
,/,
a/DT
spokesman/NN
for/IN
Coors/NNP
said/VBD
that/IN
since/IN
January/NNP
,/,
Peter/NNP
has/VBZ
been/VBN
reporting/VBG
directly/RB
to/TO
William/NNP
,/,
rather/RB
than/IN
to/TO
his/PRP$
brother/NN
./.
The/DT
change/NN
in/IN
titles/NNS
``/``
makes/VBZ
the/DT
structure/NN
conform/VB
to/TO
the/DT
reality/NN
,/,
''/''
the/DT
spokesman/NN
said/VBD
./.
William/NNP
,/,
the/DT
brothers/NNS
,/,
another/DT
brother/NN
Joe/NNP
Jr./NNP
,/,
and/CC
their/PRP$
father/NN
Joseph/NNP
Sr./NNP
all/DT
serve/VBP
on/IN
the/DT
company/NN
's/POS
nine-member/JJ
board/NN
./.
According/VBG
to/TO
analysts/NNS
,/,
the/DT
changes/NNS
reflect/VBP
the/DT
tough/JJ
task/NN
the/DT
company/NN
faces/VBZ
in/IN
integrating/VBG
the/DT
operations/NNS
and/CC
marketing/NN
efforts/NNS
of/IN
Stroh/NNP
and/CC
Coors/NNP
,/,
steering/VBG
the/DT
merger/NN
through/IN
the/DT
Justice/NNP
Department/NNP
and/CC
continuing/VBG
to/TO
fight/VB
the/DT
battle/NN
Coors/NNP
is/VBZ
waging/VBG
with/IN
Anheuser/NNP
and/CC
Miller/NNP
Brewing/NNP
Co./NNP
,/,
a/DT
unit/NN
of/IN
Philip/NNP
Morris/NNP
Cos/NNP
./.
``/``
It/PRP
's/VBZ
gray-beard/JJ
time/NN
,/,
''/''
said/VBD
Tom/NNP
Pirko/NNP
,/,
president/NN
of/IN
Bevmark/NNP
Inc./NNP
,/,
a/DT
Los/NNP
Angeles/NNP
consulting/NN
firm/NN
,/,
referring/VBG
to/TO
the/DT
move/NN
of/IN
William/NNP
into/IN
the/DT
presidency/NN
./.
``/``
This/DT
is/VBZ
a/DT
time/NN
of/IN
tremendous/JJ
risk/NN
at/IN
the/DT
company/NN
,/,
and/CC
Peter/NNP
has/VBZ
a/DT
tremendous/JJ
amount/NN
of/IN
responsibility/NN
./.
''/''
Putting/VBG
William/NNP
at/IN
the/DT
helm/NN
probably/RB
wo/MD
n't/RB
increase/VB
the/DT
elder/JJR
Coors/NNP
's/POS
imput/NN
into/IN
the/DT
beer/NN
business/NN
,/,
but/CC
``/``
it/PRP
does/VBZ
n't/RB
hurt/VB
to/TO
have/VB
a/DT
senior/JJ
statesman/NN
at/IN
the/DT
top/NN
,/,
''/''
he/PRP
said/VBD
./.
In/IN
a/DT
brief/JJ
telephone/NN
interview/NN
yesterday/NN
,/,
Peter/NNP
Coors/NNP
said/VBD
his/PRP$
uncle/NN
``/``
is/VBZ
our/PRP$
leader/NN
./.
We/PRP
depend/VBP
on/IN
all/PDT
his/PRP$
years/NNS
of/IN
experience/NN
and/CC
knowledge/NN
in/IN
the/DT
industry/NN
,/,
and/CC
that/IN
does/VBZ
n't/RB
change/VB
./.
''/''
But/CC
in/IN
January/NNP
,/,
Peter/NNP
said/VBD
,/,
his/PRP$
uncle/NN
told/VBD
him/PRP
and/CC
his/PRP$
brothers/NNS
,/,
``/``
You/PRP
guys/NNS
run/VBP
those/DT
units/NNS
./.
''/''
Coors/NNP
stressed/VBD
that/IN
the/DT
removal/NN
of/IN
Jeff/NNP
from/IN
the/DT
presidency/NN
was/VBD
n't/RB
a/DT
demotion/NN
,/,
but/CC
would/MD
allow/VB
him/PRP
to/TO
devote/VB
his/PRP$
full/JJ
attention/NN
to/TO
his/PRP$
unit/NN
./.
Coors/NNP
has/VBZ
continually/RB
pointed/VBN
to/TO
the/DT
importance/NN
of/IN
the/DT
technology/NN
unit/NN
to/TO
its/PRP$
diversification/NN
efforts/NNS
./.
But/CC
overall/RB
,/,
``/``
Coors/NNP
's/POS
success/NN
or/CC
lack/NN
thereof/RB
depends/VBZ
on/IN
the/DT
beer/NN
business/NN
,/,
''/''
said/VBD
Emanuel/NNP
Goldman/NNP
,/,
analyst/NN
at/IN
PaineWebber/NNP
Inc./NNP
in/IN
San/NNP
Francisco/NNP
./.
Mr./NNP
Goldman/NNP
credits/VBZ
Peter/NNP
Coors/NNP
with/IN
``/``
pulling/VBG
Coors/NNP
's/POS
marketing/NN
efforts/NNS
into/IN
the/DT
20th/JJ
century/NN
''/''
by/IN
pushing/VBG
for/IN
intensified/JJ
marketing/JJ
efforts/NNS
,/,
modern/JJ
advertising/NN
campaigns/NNS
and/CC
significantly/RB
higher/JJR
marketing/NN
expenditures/NNS
./.
Analysts/NNS
also/RB
credit/VBP
Peter/NNP
with/IN
selling/VBG
other/JJ
family/NN
members/NNS
on/IN
the/DT
purchase/NN
of/IN
Stroh/NNP
,/,
a/DT
transaction/NN
that/WDT
will/MD
cost/VB
about/RB
$/$
425/CD
million/CD
and/CC
slap/VB
a/DT
big/JJ
piece/NN
of/IN
debt/NN
on/IN
Coors/NNP
's/POS
books/NNS
for/IN
the/DT
first/JJ
time/NN
in/IN
the/DT
company/NN
's/POS
history/NN
./.
``/``
Peter/NNP
had/VBD
a/DT
major/JJ
struggle/NN
in/IN
getting/VBG
this/DT
done/VBN
,/,
''/''
said/VBD
Mr./NNP
Pirko/NNP
./.
Taking/VBG
on/IN
debt/NN
was/VBD
controversial/JJ
within/IN
the/DT
family/NN
,/,
Mr./NNP
Pirko/NNP
added/VBD
,/,
but/CC
in/IN
the/DT
end/NN
,/,
``/``
Peter/NNP
called/VBD
the/DT
shots/NNS
./.
''/''
In/IN
yesterday/NN
's/POS
interview/NN
,/,
however/RB
,/,
Peter/NNP
declined/VBD
to/TO
take/VB
individual/JJ
credit/NN
for/IN
the/DT
moves/NNS
./.
``/``
We/PRP
manage/VBP
as/IN
a/DT
team/NN
here/RB
,/,
''/''
he/PRP
said/VBD
./.
``/``
The/DT
team/NN
establishes/VBZ
the/DT
goals/NNS
./.
It/PRP
's/VBZ
the/DT
result/NN
that/WDT
's/VBZ
important/JJ
,/,
not/RB
who/WP
's/VBZ
the/DT
architect/NN
or/CC
the/DT
driving/JJ
force/NN
./.
''/''
And/CC
Peter/NNP
will/MD
continue/VB
to/TO
be/VB
under/IN
the/DT
gun/NN
,/,
given/VBN
the/DT
dominance/NN
of/IN
Anheuser/NNP
,/,
the/DT
stubbornly/RB
flat/JJ
beer/NN
market/NN
of/IN
the/DT
past/JJ
decade/NN
and/CC
recent/JJ
Coors/NNP
financial/JJ
results/NNS
that/WDT
have/VBP
been/VBN
frustratingly/RB
mediocre/JJ
./.
So/RB
far/RB
this/DT
year/NN
,/,
Coors/NNP
'/POS
market/NN
share/NN
has/VBZ
been/VBN
slipping/VBG
and/CC
so/RB
has/VBZ
net/JJ
income/NN
,/,
due/JJ
to/TO
increased/JJ
costs/NNS
and/CC
increased/JJ
price/NN
competition/NN
,/,
the/DT
company/NN
said/VBD
./.
Price/NN
competition/NN
is/VBZ
about/RB
to/TO
become/VB
even/RB
more/RBR
fierce/JJ
./.
Anheuser/NNP
announced/VBD
on/IN
Wednesday/NNP
that/IN
it/PRP
would/MD
begin/VB
discounting/VBG
Budweiser/NNP
,/,
its/PRP$
flagship/JJ
brand/NN
,/,
which/WDT
analysts/NNS
say/VB
will/MD
put/VB
exceptionally/RB
heavy/JJ
pressure/NN
on/IN
Coors/NNP
management/NN
in/IN
the/DT
midst/NN
of/IN
a/DT
major/JJ
merger/NN
./.
Peter/NNP
Coors/NNP
,/,
however/RB
,/,
said/VBD
the/DT
discounting/NN
by/IN
Anheuser/NNP
could/MD
also/RB
mean/VB
that/IN
Coors/NNP
'/POS
increased/JJ
marketing/NN
efforts/NNS
are/VBP
having/VBG
an/DT
impact/NN
./.
Furthermore/RB
,/,
he/PRP
said/VBD
,/,
``/``
I/PRP
do/VBP
n't/RB
know/VB
how/WRB
the/DT
industry/NN
can/MD
get/VB
too/RB
much/RB
tougher/JJR
./.
This/DT
is/VBZ
just/RB
a/DT
signal/NN
that/IN
the/DT
toughness/NN
is/VBZ
going/VBG
to/TO
continue/VB
./.
''/''
Sony/NNP
Corp./NNP
asked/VBD
a/DT
Los/NNP
Angeles/NNP
court/NN
to/TO
deny/VB
Warner/NNP
Communications/NNP
Inc./NNP
's/POS
request/NN
for/IN
an/DT
injunction/NN
preventing/VBG
Hollywood/NNP
producers/NNS
Peter/NNP
Guber/NNP
and/CC
John/NNP
Peters/NNP
from/IN
taking/VBG
over/RP
the/DT
management/NN
of/IN
Columbia/NNP
Pictures/NNP
Entertainment/NNP
Inc/NNP
./.
The/DT
Japanese/JJ
concern/NN
made/VBD
its/PRP$
request/NN
in/IN
Los/NNP
Angeles/NNP
Superior/NNP
Court/NNP
,/,
where/WRB
Warner/NNP
last/JJ
week/NN
filed/VBD
a/DT
$/$
1/CD
billion/CD
breach/NN
of/IN
contract/NN
suit/NN
against/IN
Sony/NNP
./.
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
are/VBP
currently/RB
under/IN
contract/NN
to/TO
produce/VB
movies/NNS
exclusively/RB
for/IN
Warner/NNP
./.
Sony/NNP
,/,
which/WDT
has/VBZ
agreed/VBN
to/TO
pay/VB
$/$
3.5/CD
billion/CD
and/CC
to/TO
assume/VB
$/$
1.5/CD
billion/CD
in/IN
debt/NN
to/TO
buy/VB
Columbia/NNP
,/,
is/VBZ
also/RB
offering/VBG
$/$
200/CD
million/CD
for/IN
Guber/NNP
Peters/NNP
Entertainment/NNP
Co./NNP
,/,
of/IN
which/WDT
the/DT
producers/NNS
are/VBP
co-chairmen/NNS
and/VBP
own/VB
a/DT
combined/JJ
28/CD
%/NN
stake/NN
./.
While/IN
executives/NNS
from/IN
both/DT
sides/NNS
say/VBP
the/DT
matter/NN
still/RB
could/MD
be/VB
settled/VBN
,/,
papers/NNS
filed/VBN
in/IN
the/DT
court/NN
by/IN
Sony/NNP
appear/VBP
to/TO
heighten/VB
the/DT
acrimony/NN
of/IN
Hollywood/NNP
's/POS
most-watched/JJ
legal/JJ
battle/NN
./.
Sony/NNP
claims/VBZ
an/DT
injunction/NN
would/MD
leave/VB
it/PRP
``/``
faced/VBN
with/IN
the/DT
ominous/JJ
possibility/NN
that/IN
it/PRP
would/MD
complete/VB
a/DT
$/$
5/CD
billion/CD
entertainment/NN
company/NN
acquisition/NN
and/CC
be/VB
left/VBN
with/IN
no/DT
management/NN
to/TO
run/VB
the/DT
company/NN
./.
''/''
Sony/NNP
adds/VBZ
that/IN
``/``
Warner/NNP
must/MD
be/VB
grinning/VBG
from/IN
ear/NN
to/TO
ear/NN
at/IN
the/DT
possibility/NN
of/IN
leaving/VBG
Sony/NNP
in/IN
such/PDT
a/DT
position/NN
and/CC
at/IN
the/DT
opportunity/NN
to/TO
prevent/VB
the/DT
revitalization/NN
of/IN
Columbia/NNP
into/IN
a/DT
strong/JJ
competitor/NN
./.
''/''
Sony/NNP
disputes/VBZ
Warner/NNP
's/POS
contention/NN
that/IN
its/PRP$
offer/NN
to/TO
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
violates/VBZ
their/PRP$
contract/NN
with/IN
Warner/NNP
,/,
which/WDT
is/VBZ
in/IN
the/DT
process/NN
of/IN
being/VBG
acquired/VBN
by/IN
New/NNP
York-based/JJ
Time/NNP
Warner/NNP
Inc/NNP
./.
Furthermore/RB
,/,
Sony/NNP
claims/VBZ
that/IN
the/DT
contract/NN
as/IN
written/VBN
--/:
and/CC
oral/JJ
agreements/NNS
that/IN
Warner/NNP
has/VBZ
denied/VBN
exist/VB
--/:
allow/VB
the/DT
producers/NNS
to/TO
take/VB
on/RP
such/JJ
executive/NN
posts/NNS
./.
Sony/NNP
's/POS
legal/JJ
argument/NN
even/RB
raises/VBZ
the/DT
novel/JJ
idea/NN
that/IN
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
could/MD
actually/RB
make/VB
movies/NNS
for/IN
Warner/NNP
while/IN
serving/VBG
in/IN
executive/JJ
posts/NNS
at/IN
another/DT
studio/NN
./.
Sony/NNP
acknowledges/VBZ
that/IN
Warner/NNP
's/POS
contract/NN
prevents/VBZ
the/DT
Guber-Peters/NNP
team/NN
from/IN
being/VBG
producers/NNS
or/CC
executive/JJ
producers/NNS
of/IN
movies/NNS
for/IN
another/DT
studio/NN
./.
But/CC
,/,
Sony/NNP
says/VBZ
,/,
that/IN
does/VBZ
n't/RB
exclude/VB
them/PRP
from/IN
taking/VBG
an/DT
executive/JJ
post/NN
at/IN
another/DT
company/NN
where/WRB
they/PRP
would/MD
be/VB
involved/VBN
in/IN
choosing/VBG
movies/NNS
and/CC
in/IN
managing/VBG
,/,
but/CC
not/RB
in/IN
day-to-day/JJ
production/NN
of/IN
movies/NNS
./.
Sony/NNP
says/VBZ
Columbia/NNP
``/``
could/MD
allow/VB
Guber/NNP
and/CC
Peters/NNP
to/TO
produce/VB
motion/NN
pictures/NNS
for/IN
Warner/NNP
as/RB
soon/RB
as/IN
the/DT
acquisition/NN
is/VBZ
consummated/VBN
./.
''/''
But/CC
Sony/NNP
also/RB
says/VBZ
in/IN
its/PRP$
filing/NN
that/IN
the/DT
Warner/NNP
contract/NN
``/``
does/VBZ
n't/RB
require/VB
that/IN
Guber/NNP
and/CC
Peters/NNP
take/VB
any/DT
affirmative/JJ
steps/NNS
to/TO
produce/VB
motion/NN
pictures/NNS
;/:
it/PRP
simply/RB
rewards/VBZ
them/PRP
when/WRB
they/PRP
do/VBP
and/CC
prohibits/VBZ
them/PRP
from/IN
producing/VBG
for/IN
another/DT
entertainment/NN
company/NN
./.
''/''
And/CC
Sony/NNP
says/VBZ
Warner/NNP
has/VBZ
already/RB
shown/VBN
it/PRP
does/VBZ
n't/RB
need/VB
the/DT
producers/NNS
``/``
by/IN
taking/VBG
action/NN
to/TO
prevent/VB
Guber/NNP
and/CC
Peters/NNP
from/IN
completing/VBG
production/NN
in/IN
Warner/NNP
properties/NNS
./.
''/''
Among/IN
the/DT
arguments/NNS
Sony/NNP
makes/VBZ
is/VBZ
that/IN
Warner/NNP
should/MD
let/VB
the/DT
producers/NNS
go/VB
to/TO
Columbia/NNP
because/IN
it/PRP
already/RB
allowed/VBD
the/DT
producers/NNS
to/TO
become/VB
co-chairmen/NNS
of/IN
publicly/RB
held/VBN
Barris/NNP
Industries/NNP
Inc./NNP
,/,
which/WDT
earlier/RB
this/DT
year/NN
changed/VBD
its/PRP$
name/NN
to/TO
Guber/NNP
Peters/NNP
Entertainment/NNP
./.
Sony/NNP
also/RB
says/VBZ
in/IN
its/PRP$
filing/VBG
that/IN
Mr./NN
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
were/VBD
offered/VBN
management/NN
posts/NNS
at/IN
Columbia/NNP
once/RB
before/RB
in/IN
1987/CD
,/,
and/CC
that/IN
``/``
Warner/NNP
approved/VBD
and/CC
encouraged/VBD
them/PRP
to/TO
do/VB
so/RB
./.
''/''
But/CC
in/IN
a/DT
sworn/JJ
affidavit/NN
last/JJ
week/NN
,/,
Warner/NNP
Bros./NNP
Chairman/NNP
Robert/NNP
Daly/NNP
denied/VBD
that/DT
./.
Mr./NNP
Daly/NNP
said/VBD
that/IN
Mr./NNP
Guber/NNP
had/VBD
mentioned/VBN
such/PDT
an/DT
offer/NN
,/,
and/CC
that/IN
he/PRP
responded/VBD
that/IN
``/``
I/PRP
thought/VBD
the/DT
idea/NN
was/VBD
a/DT
bad/JJ
one/CD
from/IN
his/PRP$
point/NN
of/IN
view/NN
,/,
and/CC
I/PRP
understand/VBP
he/PRP
dropped/VBD
the/DT
idea/NN
shortly/RB
thereafter/RB
./.
''/''
The/DT
two/CD
sides/NNS
did/VBD
some/DT
rival-bashing/JJ
yesterday/NN
as/RB
well/RB
./.
In/IN
a/DT
sworn/JJ
declaration/NN
,/,
Walter/NNP
Yetnikoff/NNP
,/,
president/NN
of/IN
Sony/NNP
's/POS
CBS/NNP
Records/NNP
unit/NN
,/,
said/VBD
Warner/NNP
Chairman/NNP
Steven/NNP
Ross/NNP
has/VBZ
an/DT
``/``
anti-Japanese/JJ
,/,
anti-Sony/JJ
''/''
bias/NN
./.
But/CC
Stuart/NNP
Rabinowitz/NNP
,/,
Warner/NNP
's/POS
outside/JJ
counsel/NN
,/,
says/VBZ
Sony/NNP
``/``
violates/VBZ
American/JJ
business/NN
morality/NN
by/IN
secretly/RB
raiding/VBG
major/JJ
producers/NNS
under/IN
exclusive/JJ
contract/NN
to/TO
Warner/NNP
./.
''/''
In/IN
another/DT
sworn/JJ
declaration/NN
yesterday/NN
,/,
Sony/NNP
Corp./NNP
of/IN
America/NNP
Vice/NNP
Chairman/NNP
Michael/NNP
Schulof/NNP
said/VBD
that/IN
while/IN
he/PRP
was/VBD
negotiating/VBG
with/IN
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
,/,
he/PRP
relied/VBD
on/IN
the/DT
producers/NNS
'/POS
assurances/NNS
that/IN
Warner/NNP
had/VBD
previously/RB
agreed/VBN
to/TO
let/VB
them/PRP
terminate/VB
the/DT
contract/NN
and/CC
would/MD
n't/RB
have/VB
any/DT
trouble/NN
obtaining/VBG
a/DT
release/NN
./.
Mr./NNP
Guber/NNP
,/,
meanwhile/RB
,/,
in/IN
his/PRP$
own/JJ
sworn/JJ
declaration/NN
yesterday/NN
,/,
maintained/VBD
that/IN
running/VBG
a/DT
studio/NN
has/VBZ
always/RB
been/VBN
``/``
our/PRP$
professed/JJ
goal/NN
,/,
''/''
and/CC
that/IN
Warner/NNP
executives/NNS
made/VBD
an/DT
oral/JJ
agreement/NN
that/WDT
would/MD
free/VB
the/DT
producers/NNS
from/IN
their/PRP$
contract/NN
should/MD
the/DT
opportunity/NN
arise/VB
./.
Mr./NNP
Peters/NNP
,/,
in/IN
his/PRP$
declaration/NN
,/,
supported/VBD
Mr./NNP
Guber/NNP
's/POS
claims/NNS
and/CC
said/VBD
he/PRP
is/VBZ
``/``
shocked/JJ
''/''
by/IN
the/DT
assertions/NNS
of/IN
Warner/NNP
executives/NNS
that/IN
such/PDT
an/DT
agreement/NN
was/VBD
never/RB
made/VBN
./.
Regional/JJ
thrift/NN
regulators/NNS
charged/VBD
that/IN
phone/NN
calls/NNS
were/VBD
bugged/VBN
during/IN
the/DT
examination/NN
of/IN
Lincoln/NNP
Savings/NNP
&/CC
Loan/NNP
Association/NNP
and/CC
that/IN
federal/JJ
officials/NNS
in/IN
Washington/NNP
delayed/VBD
Lincoln/NNP
's/POS
seizure/NN
until/IN
its/PRP$
$/$
2.5/CD
billion/CD
cost/NN
made/VBD
it/PRP
the/DT
most/RBS
expensive/JJ
thrift/NN
failure/NN
ever/RB
./.
``/``
Clearly/RB
,/,
we/PRP
were/VBD
shot/VBN
in/IN
the/DT
back/NN
.../:
as/IN
we/PRP
battled/VBD
to/TO
protect/VB
the/DT
taxpayers/NNS
,/,
''/''
said/VBD
William/NNP
Black/NNP
,/,
acting/VBG
district/NN
counsel/NN
for/IN
the/DT
San/NNP
Francisco/NNP
region/NN
of/IN
thrift/NN
regulators/NNS
./.
In/IN
a/DT
day/NN
of/IN
extraordinary/JJ
testimony/NN
before/IN
the/DT
House/NNP
Banking/NNP
Committee/NNP
,/,
officials/NNS
from/IN
the/DT
San/NNP
Francisco/NNP
Office/NNP
of/IN
Thrift/NNP
Supervision/NNP
also/RB
testified/VBD
that/IN
a/DT
Big/NNP
Eight/CD
accounting/NN
firm/NN
,/,
Arthur/NNP
Andersen/NNP
&/CC
Co./NNP
,/,
participated/VBN
in/IN
back-dating/VBG
loan/NN
documents/NNS
and/CC
that/IN
the/DT
Washington/NNP
officials/NNS
even/RB
agreed/VBD
in/IN
one/CD
document/NN
not/RB
to/TO
prosecute/VB
Lincoln/NNP
over/IN
certain/JJ
infractions/NNS
./.
The/DT
hearing/NN
may/MD
also/RB
add/VB
to/TO
the/DT
unease/NN
of/IN
Sens./NNP
Alan/NNP
Cranston/NNP
D./NNP
,/,
Calif/NNP
./.
Dennis/NNP
DeConcini/NNP
D./NNP
,/,
Ariz./NNP
who/WP
are/VBP
being/VBG
scrutinized/VBN
for/IN
intervening/VBG
on/IN
behalf/NN
of/IN
Lincoln/NNP
,/,
a/DT
unit/NN
of/IN
American/NNP
Continental/NNP
Corp./NNP
,/,
Phoenix/NNP
,/,
Ariz/NNP
./.
The/DT
officials/NNS
said/VBD
Sen./NNP
DeConcini/NNP
and/CC
an/DT
aide/NN
to/TO
Sen./NNP
Cranston/NNP
called/VBD
California/NNP
state/NN
thrift/NN
officials/NNS
to/TO
press/VB
for/IN
a/DT
sale/NN
of/IN
Lincoln/NNP
,/,
instead/RB
of/IN
its/PRP$
seizure/NN
./.
Witnesses/NNS
said/VBD
the/DT
room/NN
in/IN
which/WDT
California/NNP
examiners/NNS
were/VBD
auditing/VBG
Lincoln/NNP
this/DT
past/JJ
spring/NN
was/VBD
bugged/VBN
./.
According/VBG
to/TO
a/DT
government/NN
memo/NN
,/,
regulators/NNS
who/WP
took/VBD
control/NN
of/IN
the/DT
thrift/NN
in/IN
August/NNP
discovered/VBD
that/IN
a/DT
phone/NN
line/NN
in/IN
Lincoln/NNP
's/POS
headquarters/NN
in/IN
Irvine/NNP
,/,
Calif./NNP
,/,
had/VBD
been/VBN
``/``
compromised/VBN
''/''
to/TO
allow/VB
calls/NNS
to/TO
be/VB
monitored/VBN
on/IN
other/JJ
extensions/NNS
./.
It/PRP
did/VBD
n't/RB
say/VB
who/WP
was/VBD
monitoring/VBG
the/DT
calls/NNS
,/,
but/CC
said/VBD
the/DT
matter/NN
was/VBD
turned/VBN
over/RP
to/TO
the/DT
Federal/NNP
Bureau/NNP
of/IN
Investigation/NNP
./.
A/DT
Lincoln/NNP
spokesman/NN
said/VBD
its/PRP$
management/NN
``/``
never/RB
authorized/VBD
or/CC
participated/VBD
in/IN
any/DT
bugging/NN
of/IN
anyone/NN
./.
''/''
The/DT
regional/JJ
officials/NNS
said/VBD
Washington/NNP
's/POS
chief/JJ
thrift/NN
regulator/NN
,/,
Danny/NNP
Wall/NNP
,/,
and/CC
his/PRP$
principal/JJ
lieutenants/NNS
repeatedly/RB
ignored/VBD
warnings/NNS
that/IN
Lincoln/NNP
was/VBD
being/VBG
operated/VBN
in/IN
a/DT
reckless/JJ
manner/NN
,/,
certain/JJ
to/TO
cause/VB
its/PRP$
failure/NN
./.
They/PRP
also/RB
accused/VBD
Mr./NNP
Wall/NNP
of/IN
holding/VBG
improper/JJ
meetings/NNS
with/IN
Lincoln/NNP
officials/NNS
,/,
while/IN
refusing/VBG
to/TO
listen/VB
to/TO
field/NN
examiners/NNS
./.
Members/NNP
of/IN
the/DT
Banking/NNP
Committee/NNP
generally/RB
received/VBD
the/DT
regional/JJ
officials/NNS
as/IN
bureaucratic/JJ
heroes/NNS
and/CC
sharply/RB
criticized/VBD
their/PRP$
Washington/NNP
bosses/NNS
,/,
who/WP
had/VBD
relieved/VBN
them/PRP
of/IN
their/PRP$
responsibility/NN
for/IN
Lincoln/NNP
two/CD
years/NNS
before/IN
the/DT
thrift/NN
's/POS
parent/NN
filed/VBD
for/IN
bankruptcy-law/NN
protection/NN
./.
Committee/NNP
Chairman/NNP
Henry/NNP
Gonzalez/NNP
D./NNP
,/,
Texas/NNP
Mr./NNP
Wall/NNP
``/``
willingly/RB
cut/VBD
the/DT
legs/NNS
out/IN
from/IN
under/IN
his/PRP$
regulatory/JJ
troops/NNS
in/IN
the/DT
middle/NN
of/IN
the/DT
battle/NN
,/,
''/''
and/CC
renewed/VBD
his/PRP$
call/NN
for/IN
Mr./NNP
Wall/NNP
to/TO
step/VB
aside/RB
./.
Rep./NNP
Joseph/NNP
Kennedy/NNP
D./NNP
,/,
Mass/NNP
./.
The/DT
higher/JJR
up/RB
in/IN
the/DT
regulatory/JJ
process/NN
,/,
the/DT
more/RBR
corrupt/JJ
it/PRP
would/MD
appear/VB
./.
''/''
Mr./NNP
Wall/NNP
is/VBZ
scheduled/VBN
to/TO
testify/VB
Nov./NNP
7/CD
,/,
and/CC
his/PRP$
agency/NN
said/VBD
that/IN
all/DT
sides/NNS
of/IN
the/DT
issue/NN
should/MD
be/VB
heard/VBN
before/IN
drawing/VBG
conclusions/NNS
./.
Separately/RB
,/,
other/JJ
Washington/NNP
thrift/NN
officials/NNS
disputed/VBD
the/DT
regional/JJ
examiners/NNS
'/POS
statement/NN
that/IN
they/PRP
had/VBD
called/VBN
specifically/RB
for/IN
the/DT
seizure/NN
of/IN
Lincoln/NNP
in/IN
1987/CD
,/,
saying/VBG
that/IN
it/PRP
was/VBD
only/RB
one/CD
option/NN
they/PRP
presented/VBD
./.
The/DT
regional/JJ
officials/NNS
also/RB
said/VBD
that/IN
Arthur/NNP
Andersen/NNP
backdated/VBD
data/NNS
to/TO
support/VB
loans/NNS
that/WDT
were/VBD
made/VBN
with/IN
no/DT
underwriting/NN
standards/NNS
./.
Over/IN
two/CD
years/NNS
,/,
until/IN
April/NNP
1986/CD
,/,
$/$
1/CD
billion/CD
in/IN
loans/NNS
were/VBD
approved/VBN
,/,
even/RB
though/IN
Lincoln/NNP
had/VBD
no/DT
written/JJ
loan/NN
standards/NNS
,/,
said/VBD
Mike/NNP
Patriarca/NNP
,/,
acting/VBG
principal/JJ
supervisory/JJ
agent/NN
with/IN
the/DT
Office/NNP
of/IN
Thrift/NNP
Supervision/NNP
./.
Fifty-two/JJ
loans/NNS
were/VBD
made/VBN
in/IN
March/NNP
1986/CD
,/,
he/PRP
said/VBD
,/,
and/CC
none/NN
had/VBD
credit/NN
reports/NNS
or/CC
other/JJ
background/NN
work/NN
completed/VBN
./.
``/``
At/IN
a/DT
later/JJ
time/NN
,/,
the/DT
files/NNS
looked/VBD
good/JJ
because/IN
they/PRP
had/VBD
been/VBN
stuffed/VBN
,/,
''/''
Mr./NNP
Patriarca/NNP
said/VBD
./.
Leonard/NNP
Bickwit/NNP
,/,
a/DT
Washington/NNP
attorney/NN
for/IN
Lincoln/NNP
,/,
conceded/VBD
that/IN
some/DT
memos/NNS
had/VBD
been/VBN
written/VBN
after/IN
the/DT
fact/NN
./.
He/PRP
said/VBD
that/IN
``/``
memorialization/NN
of/IN
underwriting/NN
activities/NNS
that/WDT
had/VBD
been/VBN
undertaken/VBN
at/IN
an/DT
earlier/JJR
time/NN
''/''
did/VBD
occur/VB
,/,
but/CC
that/IN
Lincoln/NNP
believed/VBD
it/PRP
adhered/VBD
to/TO
lending/NN
standards/NNS
superior/JJ
to/TO
the/DT
industry/NN
average/NN
./.
A/DT
spokesman/NN
for/IN
Arthur/NNP
Andersen/NNP
denied/VBD
any/DT
improprieties/NNS
,/,
adding/VBG
,/,
``/``
At/IN
the/DT
request/NN
of/IN
our/PRP$
then-client/NN
,/,
we/PRP
provided/VBD
staff/NN
personnel/NNS
to/TO
work/VB
for/IN
a/DT
limited/JJ
period/NN
of/IN
time/NN
under/IN
the/DT
direction/NN
of/IN
client/NN
personnel/NNS
to/TO
assist/VB
them/PRP
in/IN
organizing/VBG
certain/JJ
files/NNS
./.
''/''
The/DT
matter/NN
is/VBZ
under/IN
active/JJ
criminal/JJ
investigation/NN
at/IN
the/DT
Justice/NNP
Department/NNP
,/,
Mr./NNP
Black/NNP
said/VBD
./.
The/DT
hearings/NNS
also/RB
disclosed/VBD
that/IN
Washington/NNP
officials/NNS
promised/VBD
in/IN
May/NNP
1988/CD
not/RB
to/TO
launch/VB
any/DT
civil/JJ
or/CC
criminal/JJ
actions/NNS
based/VBN
on/IN
an/DT
examination/NN
in/IN
which/WDT
regional/JJ
officials/NNS
concluded/VBD
that/DT
Lincoln/NN
was/VBD
being/VBG
operated/VBN
in/IN
an/DT
unsafe/JJ
and/CC
unsound/JJ
manner/NN
./.
``/``
Giving/VBG
up/RP
the/DT
right/NN
to/TO
make/VB
criminal/JJ
referrals/NNS
to/TO
me/PRP
is/VBZ
inconceivable/JJ
,/,
''/''
Mr./NNP
Black/NNP
said/VBD
./.
The/DT
committee/NN
also/RB
heard/VBD
testimony/NN
from/IN
two/CD
officials/NNS
who/WP
said/VBD
that/IN
Sens./NNP
Cranston/NNP
and/CC
DeConcini/NNP
,/,
who/WP
received/VBD
campaign/NN
contributions/NNS
from/IN
Lincoln/NNP
Chairman/NNP
Charles/NNP
Keating/NNP
Jr./NNP
,/,
arranged/VBD
for/IN
telephone/NN
calls/NNS
on/IN
their/PRP$
behalf/NN
to/TO
state/VB
thrift/NN
regulators/NNS
./.
The/DT
officials/NNS
said/VBD
both/DT
calls/NNS
encouraged/VBD
a/DT
sale/NN
of/IN
Lincoln/NNP
to/TO
an/DT
outside/JJ
buyer/NN
,/,
which/WDT
Mr./NNP
Keating/NNP
sought/VBD
,/,
rather/RB
than/IN
putting/VBG
it/PRP
in/IN
receivership/NN
./.
A/DT
spokesman/NN
for/IN
Sen./NNP
Cranston/NNP
said/VBD
that/IN
telephone-company/NN
records/NNS
for/IN
three/CD
months/NNS
disclosed/VBD
no/DT
phone/NN
calls/NNS
to/TO
the/DT
state/NN
regulators/NNS
from/IN
his/PRP$
office/NN
./.
An/DT
aide/NN
to/TO
Sen./NNP
DeConcini/NNP
said/VBD
the/DT
phone/NN
call/NN
to/TO
a/DT
top/JJ
California/NNP
thrift/NN
regulator/NN
was/VBD
``/``
informational/JJ
./.
''/''
The/DT
White/NNP
House/NNP
and/CC
the/DT
Senate/NNP
Intelligence/NNP
Committee/NNP
agreed/VBD
on/IN
new/JJ
rules/NNS
for/IN
covert/JJ
operations/NNS
that/WDT
will/MD
give/VB
President/NNP
Bush/NNP
a/DT
freer/JJR
hand/NN
to/TO
involve/VB
the/DT
U.S./NNP
in/IN
coup/NN
plots/NNS
in/IN
Panama/NNP
and/CC
elsewhere/RB
./.
Based/VBN
on/IN
assurances/NNS
from/IN
the/DT
White/NNP
House/NNP
,/,
the/DT
committee/NN
agreed/VBD
to/TO
rescind/VB
Reagan-era/JJ
restrictions/NNS
and/CC
give/VB
U.S./NNP
operatives/NNS
wide/JJ
latitude/NN
to/TO
participate/VB
in/IN
planning/VBG
foreign/JJ
coups/NNS
,/,
according/VBG
to/TO
committee/NN
officials/NNS
./.
In/IN
particular/JJ
,/,
the/DT
Bush/NNP
administration/NN
will/MD
no/RB
longer/RBR
be/VB
bound/VBN
by/IN
a/DT
controversial/JJ
legal/JJ
interpretation/NN
put/VBN
in/IN
place/NN
last/JJ
year/NN
that/WDT
could/MD
have/VB
required/VBN
notifying/VBG
dictators/NNS
in/IN
advance/NN
of/IN
coup/NN
plots/NNS
that/WDT
might/MD
endanger/VB
their/PRP$
lives/NNS
./.
Instead/RB
,/,
the/DT
officials/NNS
said/VBD
,/,
an/DT
executive/JJ
order/NN
barring/VBG
assassinations/NNS
would/MD
be/VB
considered/VBN
satisfied/VBN
as/RB
long/RB
as/IN
U.S./NNP
agents/NNS
stay/VBP
away/RB
from/IN
coup/NN
plots/NNS
that/WDT
have/VBP
assassinations/NNS
as/IN
their/PRP$
explicit/JJ
goal/NN
./.
``/``
We/PRP
start/VBP
with/IN
a/DT
clean/JJ
slate/NN
,/,
''/''
said/VBD
one/CD
official/NN
familiar/JJ
with/IN
the/DT
pact/NN
./.
The/DT
agreement/NN
was/VBD
disclosed/VBN
last/JJ
night/NN
after/IN
the/DT
panel/NN
approved/VBD
separate/JJ
intelligence/NN
legislation/NN
and/CC
held/VBD
a/DT
closed/JJ
hearing/NN
regarding/VBG
Panama/NNP
with/IN
officials/NNS
from/IN
the/DT
Central/NNP
Intelligence/NNP
Agency/NNP
,/,
the/DT
State/NNP
Department/NNP
and/CC
the/DT
Pentagon/NNP
./.
The/DT
legislation/NN
also/RB
contains/VBZ
significant/JJ
compromises/NNS
that/WDT
have/VBP
the/DT
effect/NN
of/IN
giving/VBG
Mr./NNP
Bush/NNP
more/JJR
leeway/NN
in/IN
covert/JJ
actions/NNS
./.
The/DT
panel/NN
dropped/VBD
a/DT
plan/NN
to/TO
require/VB
48-hour/JJ
notice/NN
of/IN
covert/JJ
acts/NNS
,/,
and/CC
it/PRP
voted/VBD
to/TO
permit/VB
the/DT
CIA/NNP
to/TO
use/VB
a/DT
contingency/NN
fund/NN
to/TO
launch/VB
covert/JJ
acts/NNS
./.
In/IN
return/NN
,/,
Mr./NNP
Bush/NNP
is/VBZ
sending/VBG
Congress/NNP
a/DT
letter/NN
pledging/VBG
to/TO
notify/VB
the/DT
committee/NN
in/IN
advance/NN
of/IN
nearly/RB
all/DT
covert/JJ
acts/NNS
,/,
but/CC
reserving/VBG
the/DT
right/NN
to/TO
delay/VB
notification/NN
in/IN
some/DT
cases/NNS
until/IN
a/DT
few/JJ
days/NNS
after/IN
the/DT
operations/NNS
are/VBP
launched/VBN
,/,
and/CC
in/IN
rare/JJ
cases/NNS
,/,
to/TO
take/VB
longer/RBR
./.
In/IN
addition/NN
,/,
the/DT
administration/NN
promised/VBD
to/TO
put/VB
into/IN
writing/NN
all/DT
presidential/JJ
intelligence/NN
decisions/NNS
,/,
called/VBN
``/``
findings/NNS
./.
''/''
And/CC
the/DT
CIA/NNP
reluctantly/RB
agreed/VBD
to/TO
accept/VB
a/DT
more/RBR
independent/JJ
internal/JJ
inspector/NN
's/POS
office/NN
than/IN
now/RB
exists/VBZ
./.
Some/DT
gifts/NNS
are/VBP
better/RBR
left/VBN
unopened/JJ
./.
In/IN
1984/CD
,/,
Howard/NNP
Conant/NNP
,/,
a/DT
director/NN
of/IN
Valspar/NNP
Corp./NNP
,/,
donated/VBD
to/TO
Goodwill/NNP
Industries/NNP
Inc./NNP
of/IN
Chicago/NNP
an/DT
eight-acre/JJ
site/NN
on/IN
the/DT
city/NN
's/POS
west/JJ
side/NN
,/,
where/WRB
Valspar/NNP
had/VBD
operated/VBN
a/DT
paint/NN
factory/NN
./.
Goodwill/NNP
planned/VBD
to/TO
sell/VB
the/DT
property/NN
and/CC
pocket/NN
the/DT
proceeds/NNS
,/,
as/IN
it/PRP
had/VBD
in/IN
many/JJ
similar/JJ
cases/NNS
./.
Six/CD
months/NNS
later/RB
,/,
Goodwill/NNP
says/VBZ
,/,
it/PRP
was/VBD
stunned/VBN
to/TO
learn/VB
from/IN
the/DT
Illinois/NNP
Environmental/NNP
Protection/NNP
Agency/NNP
that/IN
Mr./NNP
Conant/NNP
's/POS
gift/NN
was/VBD
contaminated/JJ
and/CC
that/IN
the/DT
charity/NN
,/,
as/IN
the/DT
current/JJ
owner/NN
,/,
could/MD
be/VB
held/VBN
responsible/JJ
for/IN
any/DT
cleanup/NN
costs/NNS
./.
Only/RB
this/DT
June/NNP
,/,
after/IN
the/DT
state/NN
agency/NN
made/VBD
a/DT
more/RBR
complete/JJ
survey/NN
of/IN
the/DT
site/NN
,/,
did/VBD
Goodwill/NNP
realize/VB
the/DT
extent/NN
of/IN
the/DT
problem/NN
:/:
The/DT
property/NN
contains/VBZ
more/JJR
than/IN
70/CD
storage/NN
tanks/NNS
holding/VBG
hazardous/JJ
oily/JJ
solvents/NNS
and/CC
lead/NN
,/,
and/CC
the/DT
soil/NN
is/VBZ
contaminated/JJ
by/IN
similar/JJ
substances/NNS
./.
``/``
It/PRP
's/VBZ
a/DT
toxic/JJ
time/NN
bomb/NN
,/,
''/''
says/VBZ
James/NNP
D./NNP
Wadsworth/NNP
,/,
president/NN
of/IN
the/DT
Chicago/NNP
Goodwill/NNP
,/,
which/WDT
is/VBZ
independent/JJ
of/IN
sister/JJ
Goodwills/NNPS
around/IN
the/DT
country/NN
./.
Cleaning/VBG
up/RP
the/DT
site/NN
is/VBZ
expected/VBN
to/TO
cost/VB
many/JJ
millions/NNS
of/IN
dollars/NNS
./.
Paying/VBG
even/RB
a/DT
portion/NN
of/IN
the/DT
cleanup/NN
costs/NNS
could/MD
bankrupt/VB
the/DT
charity/NN
,/,
which/WDT
has/VBZ
annual/JJ
revenue/NN
of/IN
$/$
6/CD
million/CD
,/,
says/VBZ
Russell/NNP
B./NNP
Selman/NNP
,/,
Goodwill/NNP
's/POS
lawyer/NN
./.
In/IN
a/DT
pending/VBG|JJ
lawsuit/NN
,/,
the/DT
charity/NN
has/VBZ
asked/VBN
a/DT
federal/JJ
district/NN
court/NN
in/IN
Chicago/NNP
to/TO
rescind/VB
its/PRP$
donation/NN
agreement/NN
with/IN
Valspar/NNP
and/CC
Mr./NNP
Conant/NNP
./.
Goodwill/NNP
's/POS
problem/NN
looms/VBZ
as/IN
a/DT
potential/JJ
threat/NN
to/TO
any/DT
charity/NN
that/WDT
accepts/VBZ
property/NN
gifts/NNS
in/IN
the/DT
new/JJ
age/NN
of/IN
tough/JJ
environmental/JJ
laws/NNS
./.
Under/IN
federal/JJ
and/CC
Illinois/NNP
law/NN
,/,
present/JJ
and/CC
past/JJ
owners/NNS
of/IN
a/DT
contaminated/JJ
site/NN
are/VBP
among/IN
those/DT
who/WP
can/MD
be/VB
held/VBN
liable/JJ
for/IN
all/DT
cleanup/NN
costs/NNS
,/,
regardless/RB
of/IN
who/WP
caused/VBD
the/DT
problem/NN
;/:
regulators/NNS
generally/RB
assign/VBP
the/DT
costs/NNS
./.
Donating/VBG
contaminated/JJ
property/NN
allows/VBZ
companies/NNS
to/TO
share/VB
the/DT
costs/NNS
of/IN
their/PRP$
environmental/JJ
problems/NNS
,/,
says/VBZ
Laurence/NNP
Molloy/NNP
of/IN
Molloy/NNP
Corp./NNP
,/,
an/DT
environmental/JJ
management/NN
firm/NN
in/IN
New/NNP
York/NNP
./.
It/PRP
also/RB
allows/VBZ
businesses/NNS
to/TO
stop/VB
paying/VBG
taxes/NNS
and/CC
insurance/NN
on/IN
land/NN
they/PRP
no/RB
longer/RBR
use/VB
and/CC
to/TO
take/VB
a/DT
tax/NN
deduction/NN
on/IN
the/DT
property/NN
,/,
tax/NN
lawyers/NNS
say/VBP
./.
Nonprofit/JJ
organizations/NNS
might/MD
escape/VB
liability/NN
by/IN
showing/VBG
that/IN
they/PRP
did/VBD
n't/RB
know/VB
a/DT
site/NN
was/VBD
contaminated/JJ
,/,
but/CC
to/TO
succeed/VB
they/PRP
must/MD
also/RB
show/VB
that/IN
they/PRP
conducted/VBD
an/DT
investigation/NN
before/IN
accepting/VBG
the/DT
donation/NN
and/CC
that/IN
it/PRP
did/VBD
n't/RB
disclose/VB
the/DT
toxic-waste/NN
problem/NN
./.
Such/PDT
an/DT
investigation/NN
can/MD
cost/VB
as/RB
much/RB
as/IN
$/$
50,000/CD
./.
Charities/NNS
face/VBP
a/DT
dilemma/NN
,/,
because/IN
they/PRP
ca/MD
n't/RB
reject/VB
gifts/NNS
of/IN
property/NN
without/IN
significantly/RB
reducing/VBG
their/PRP$
revenue/NN
./.
Since/IN
1984/CD
,/,
non-cash/JJ
donations/NNS
,/,
which/WDT
include/VBP
real/JJ
estate/NN
,/,
have/VBP
accounted/VBN
for/IN
20/CD
%/NN
of/IN
corporate/JJ
giving/NN
,/,
according/VBG
to/TO
the/DT
Conference/NNP
Board/NNP
,/,
a/DT
New/NNP
York/NNP
trade/NN
group/NN
that/WDT
tracks/VBZ
corporate/JJ
giving/NN
./.
In/IN
1983/CD
,/,
such/JJ
donations/NNS
represented/VBD
only/RB
11/CD
%/NN
of/IN
corporate/JJ
giving/NN
./.
Still/RB
,/,
because/IN
of/IN
the/DT
hazards/NNS
,/,
many/JJ
nonprofit/JJ
organizations/NNS
are/VBP
tightening/VBG
their/PRP$
rules/NNS
on/IN
such/JJ
gifts/NNS
./.
Since/IN
June/NNP
,/,
the/DT
Salvation/NNP
Army/NNP
's/POS
Eastern/JJ
division/NN
has/VBZ
refused/VBN
real-estate/NN
donations/NNS
unless/IN
the/DT
donor/NN
first/RB
conducts/VBZ
an/DT
environmental/JJ
assessment/NN
of/IN
the/DT
property/NN
./.
``/``
We/PRP
tend/VBP
to/TO
be/VB
very/RB
careful/JJ
,/,
''/''
says/VBZ
Carl/NNP
Schoch/NNP
,/,
property/NN
secretary/NN
for/IN
the/DT
Eastern/JJ
division/NN
./.
``/``
We/PRP
're/VBP
aware/JJ
an/DT
owner/NN
might/MD
want/VB
to/TO
get/VB
rid/VBN|JJ
of/IN
''/''
a/DT
hazardous/JJ
site/NN
./.
At/IN
the/DT
Nature/NNP
Conservancy/NNP
,/,
site/NN
inspections/NNS
,/,
which/WDT
have/VBP
been/VBN
mandatory/JJ
since/IN
the/DT
late/JJ
'70s/NNS
,/,
``/``
are/VBP
now/RB
specifically/RB
geared/VBN
to/TO
looking/VBG
for/IN
hazardous-waste/NN
problems/NNS
,/,
''/''
says/VBZ
Michael/NNP
Dennis/NNP
,/,
general/JJ
counsel/NN
for/IN
the/DT
Rosalind/NNP
,/,
Va./NNP
,/,
group/NN
./.
So/RB
far/RB
the/DT
organization/NN
has/VBZ
n't/RB
incurred/VBN
any/DT
major/JJ
liabilities/NNS
./.
Last/JJ
year/NN
it/PRP
went/VBD
back/RB
to/TO
a/DT
donor/NN
eight/CD
years/NNS
after/IN
accepting/VBG
a/DT
gift/NN
when/WRB
the/DT
conservancy/NN
learned/VBN
of/IN
waste/NN
on/IN
the/DT
site/NN
./.
The/DT
donor/NN
agreed/VBD
to/TO
share/VB
the/DT
cleanup/NN
costs/NNS
./.
Now/RB
the/DT
group/NN
is/VBZ
considering/VBG
hiring/VBG
environmental/JJ
specialists/NNS
and/CC
engineers/NNS
to/TO
work/VB
for/IN
it/PRP
and/CC
investigate/VB
properties/NN
./.
``/``
All/DT
you/PRP
need/VBP
is/VBZ
one/CD
hazardous/JJ
property/NN
,/,
and/CC
you/PRP
could/MD
have/VB
a/DT
multimillion-dollar/JJ
liability/NN
on/IN
your/PRP$
hands/NNS
,/,
''/''
Mr./NNP
Dennis/NNP
says/VBZ
./.
Universities/NNS
also/RB
are/VBP
proceeding/VBG
with/IN
caution/NN
./.
In/IN
1987/CD
the/DT
University/NNP
of/IN
Minnesota/NNP
spent/VBD
$/$
100,000/CD
cleaning/NN
up/RP
toxic/JJ
waste/NN
at/IN
a/DT
property/NN
donated/VBN
by/IN
a/DT
local/JJ
power/NN
utility/NN
./.
The/DT
site/NN
had/VBD
been/VBN
contaminated/VBN
by/IN
a/DT
company/NN
that/WDT
leased/VBD
the/DT
property/NN
and/CC
is/VBZ
now/RB
bankrupt/JJ
./.
Now/RB
all/DT
property/NN
transfers/NNS
involving/VBG
the/DT
university/NN
are/VBP
scrutinized/VBN
for/IN
potential/JJ
hazards/NNS
--/:
at/IN
a/DT
base/JJ
cost/NN
of/IN
about/RB
$/$
20,000/CD
for/IN
preliminary/JJ
research/NN
and/CC
soil/NN
samples/NNS
--/:
and/CC
scuttled/VBN
if/IN
environmental/JJ
problems/NNS
ca/MD
n't/RB
be/VB
resolved/VBN
./.
Many/JJ
nonprofit/JJ
groups/NNS
spurn/VBP
some/DT
donations/NNS
out/IN
of/IN
fear/NN
of/IN
potential/JJ
problems/NNS
./.
The/DT
Council/NNP
on/IN
the/DT
Environment/NNP
of/IN
New/NNP
York/NNP
City/NNP
,/,
a/DT
governmental/JJ
agency/NN
,/,
refused/VBD
a/DT
gift/NN
of/IN
a/DT
site/NN
to/TO
be/VB
used/VBN
for/IN
a/DT
children/NNS
's/POS
playground/NN
when/WRB
the/DT
council/NN
learned/VBD
an/DT
auto/NN
repair/NN
shop/NN
had/VBD
been/VBN
located/VBN
there/RB
./.
Little/JJ
money/NN
was/VBD
available/JJ
for/IN
tests/NNS
on/IN
the/DT
site/NN
,/,
but/CC
``/``
common/JJ
sense/NN
said/VBD
there/EX
could/MD
be/VB
problems/NNS
,/,
''/''
says/VBZ
Lys/NNP
McLaughlin/NNP
,/,
the/DT
agency/NN
's/POS
executive/JJ
director/NN
./.
Since/IN
receiving/VBG
the/DT
Valspar/NNP
gift/NN
,/,
the/DT
Chicago/NNP
Goodwill/NNP
has/VBZ
virtually/RB
closed/VBN
the/DT
door/NN
on/IN
property/NN
donations/NNS
,/,
says/VBZ
its/PRP$
president/NN
,/,
Mr./NNP
Wadsworth/NNP
./.
But/CC
that/DT
's/VBZ
no/DT
help/NN
in/IN
its/PRP$
current/JJ
toxic-waste/NN
mess/NN
./.
In/IN
its/PRP$
suit/NN
,/,
Goodwill/NNP
claims/VBZ
that/IN
Valspar/NNP
,/,
a/DT
paint/NN
and/CC
varnish/NN
maker/NN
based/VBN
in/IN
Minneapolis/NNP
,/,
and/CC
Mr./NNP
Conant/NNP
have/VBP
n't/RB
met/VBN
terms/NNS
of/IN
the/DT
donation/NN
agreement/NN
or/CC
environmental/JJ
regulations/NNS
about/IN
property/NN
transfers/NNS
./.
Mr./NNP
Conant/NNP
,/,
however/RB
,/,
is/VBZ
n't/RB
about/RB
to/TO
take/VB
back/RP
his/PRP$
gift/NN
./.
His/PRP$
lawyer/NN
,/,
Michael/NNP
Quinn/NNP
,/,
says/VBZ
he/PRP
does/VBZ
n't/RB
want/VB
the/DT
land/NN
back/RB
because/IN
its/PRP$
value/NN
has/VBZ
declined/VBN
since/IN
it/PRP
was/VBD
donated/VBN
due/RB
to/TO
vandalism/NN
or/CC
poor/JJ
maintenance/NN
./.
Valspar/NNP
,/,
which/WDT
had/VBD
leased/VBN
the/DT
property/NN
from/IN
Mr./NNP
Conant/NNP
,/,
says/VBZ
it/PRP
has/VBZ
complied/VBN
with/IN
all/DT
requests/NNS
from/IN
the/DT
Illinois/NNP
EPA/NNP
about/IN
the/DT
site/NN
./.
``/``
We/PRP
have/VBP
empathy/NN
for/IN
the/DT
unfortunate/JJ
situation/NN
Goodwill/NNP
is/VBZ
in/IN
,/,
but/CC
that/IN
does/VBZ
n't/RB
mean/VB
a/DT
legal/JJ
obligation/NN
attaches/VBZ
to/TO
it/PRP
,/,
''/''
says/VBZ
Leo/NNP
G./NNP
Stern/NNP
,/,
a/DT
lawyer/NN
for/IN
Valspar/NNP
./.
Both/DT
Valspar/NNP
and/CC
Mr./NNP
Conant/NNP
argue/VBP
that/IN
Goodwill/NNP
does/VBZ
n't/RB
have/VB
standing/NN
to/TO
bring/VB
its/PRP$
suit/NN
./.
As/IN
the/DT
litigation/NN
progresses/VBZ
toward/IN
the/DT
pretrial/JJ
fact-finding/JJ
stage/NN
,/,
Goodwill/NNP
's/POS
bills/NNS
continue/VBP
to/TO
mount/VB
./.
It/PRP
has/VBZ
already/RB
spent/VBN
more/JJR
than/IN
$/$
50,000/CD
on/IN
security/NN
guards/NNS
and/CC
fences/NNS
at/IN
the/DT
site/NN
./.
The/DT
charity/NN
also/RB
owes/VBZ
$/$
400,000/CD
in/IN
back/JJ
taxes/NNS
on/IN
the/DT
property/NN
;/:
its/PRP$
tax-exempt/JJ
status/NN
applies/VBZ
only/RB
if/IN
property/NN
is/VBZ
being/VBG
used/VBN
for/IN
charitable/JJ
purposes/NNS
./.
The/DT
state/NN
of/IN
Illinois/NNP
has/VBZ
sued/VBN
Goodwill/NNP
for/IN
a/DT
share/NN
of/IN
the/DT
cleanup/NN
costs/NNS
at/IN
a/DT
second/JJ
site/NN
,/,
a/DT
former/JJ
paint/NN
factory/NN
in/IN
Chicago/NNP
./.
That/DT
property/NN
was/VBD
donated/VBN
to/TO
Goodwill/NNP
by/IN
Artra/NNP
Group/NNP
Inc./NNP
,/,
a/DT
Northbrook/NNP
,/,
Ill./NNP
,/,
company/NN
with/IN
interests/NNS
in/IN
fashion/NN
jewelry/NN
and/CC
accessories/NNS
./.
Goodwill/NNP
later/RB
sold/VBD
the/DT
site/NN
,/,
before/IN
,/,
it/PRP
says/VBZ
,/,
there/EX
was/VBD
any/DT
indication/NN
of/IN
contamination/NN
./.
Some/DT
charity/NN
officials/NNS
now/RB
say/VBP
Congress/NNP
should/MD
exempt/VB
nonprofit/JJ
organizations/NNS
that/WDT
receive/VBP
land/NN
donations/NNS
from/IN
any/DT
cleanup/NN
liability/NN
./.
That/DT
seems/VBZ
unlikely/JJ
,/,
though/IN
,/,
because/IN
``/``
everyone/NN
wants/VBZ
an/DT
exemption/NN
,/,
''/''
says/VBZ
David/NNP
Van/NNP
Slyke/NNP
,/,
a/DT
lawyer/NN
with/IN
the/DT
enforcement/NN
and/CC
compliance/NN
division/NN
of/IN
the/DT
federal/JJ
EPA/NNP
./.
``/``
But/CC
the/DT
agency/NN
is/VBZ
trying/VBG
to/TO
be/VB
equitable/JJ
./.
We/PRP
're/VBP
not/RB
trying/VBG
to/TO
jam/VB
people/NNS
when/WRB
they/PRP
are/VBP
an/DT
innocent/JJ
party/NN
./.
''/''
For/IN
now/RB
,/,
Goodwill/NNP
's/POS

Mr./NNP
Wadsworth/NNP
lectures/VBZ
other/JJ
charities/NNS
about/IN
accepting/VBG
land/NN
donations/NNS
./.
``/``
It/PRP
's/VBZ
supposed/VBN
to/TO
be/VB
a/DT
gift/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
But/CC
it/PRP
can/MD
turn/VB
out/IN
to/TO
be/VB
a/DT
liability/NN
./.
''/''
For/IN
a/DT
company/NN
that/WDT
sells/VBZ
billions/NNS
of/IN
dollars/NNS
in/IN
military/JJ
hardware/NN
each/DT
year/NN
,/,
Northrop/NNP
Corp./NNP
is/VBZ
pressing/VBG
awfully/RB
hard/RB
to/TO
get/VB
back/RP
a/DT
mere/JJ
$/$
6,250,000/CD
./.
The/DT
missing/JJ
funds/NNS
--/:
and/CC
the/DT
way/NN
they/PRP
've/VBP
been/VBN
accounted/VBN
for/IN
--/:
are/VBP
at/IN
the/DT
center/NN
of/IN
a/DT
long-running/JJ
dispute/NN
between/IN
the/DT
Los/NNP
Angeles/NNP
aerospace/NN
company/NN
and/CC
a/DT
well-connected/JJ
Korean/JJ
enterprise/NN
called/VBD
Asia/NNP
Culture/NNP
Travel/NNP
Development/NNP
Co/NNP
./.
Since/IN
news/NN
of/IN
Northrop/NNP
's/POS
Korean/JJ
dealings/NNS
became/VBD
public/JJ
last/JJ
year/NN
,/,
the/DT
company/NN
has/VBZ
insisted/VBN
that/IN
it/PRP
sunk/VBD
the/DT
money/NN
into/IN
a/DT
proposed/JJ
hotel/NN
venture/NN
in/IN
Seoul/NNP
,/,
losing/VBG
everything/NN
when/WRB
it/PRP
was/VBD
bamboozled/VBN
by/IN
Korean/JJ
con/JJ
men/NNS
./.
The/DT
Koreans/NNPS
say/VBP
that/IN
the/DT
hotel/NN
was/VBD
a/DT
ruse/NN
from/IN
the/DT
beginning/NN
,/,
and/CC
Northrop/NNP
really/RB
intended/VBD
to/TO
bribe/VB
government/NN
officials/NNS
to/TO
buy/VB
its/PRP$
ill-fated/JJ
F-20/NNP
Tigershark/NNP
jet/NN
fighter/NN
./.
Now/RB
,/,
a/DT
document/NN
released/VBN
by/IN
the/DT
House/NNP
Energy/NNP
and/CC
Commerce/NNP
subcommittee/NN
alleges/VBZ
that/DT
Northrop/NN
tried/VBD
to/TO
cover/VB
up/RP
those/DT
purportedly/RB
illicit/JJ
payments/NNS
by/IN
forging/VBG
signatures/NNS
,/,
shuffling/VBG
millions/NNS
of/IN
dollars/NNS
in/IN
and/CC
out/IN
of/IN
banks/NNS
and/CC
even/RB
paying/VBG
hush/JJ
money/NN
to/TO
middlemen/NNS
who/WP
threatened/VBD
to/TO
disclose/VB
the/DT
scam/NN
to/TO
the/DT
authorities/NNS
./.
Some/DT
of/IN
the/DT
allegations/NNS
were/VBD
given/VBN
to/TO
the/DT
subcommittee/NN
during/IN
testimony/NN
in/IN
August/NNP
1988/CD
./.
But/CC
the/DT
document/NN
--/:
featuring/VBG
a/DT
passel/NN
of/IN
new/JJ
details/NNS
--/:
is/VBZ
sure/JJ
to/TO
revive/VB
interest/NN
in/IN
the/DT
matter/NN
on/IN
Capitol/NNP
Hill/NNP
,/,
where/WRB
lawmakers/NNS
this/DT
week/NN
are/VBP
deciding/VBG
on/IN
appropriations/NNS
for/IN
Northrop/NNP
's/POS
most/JJS
important/JJ
Pentagon/NNP
program/NN
,/,
the/DT
B-2/NNP
Stealth/NNP
bomber/NN
./.
Asia/NNP
Culture/NNP
Travel/NNP
submitted/VBD
the/DT
document/NN
as/IN
part/NN
of/IN
its/PRP$
legal/JJ
defense/NN
to/TO
the/DT
International/NNP
Chamber/NNP
of/IN
Commerce/NNP
,/,
which/WDT
is/VBZ
arbitrating/VBG
the/DT
case/NN
between/IN
Asia/NNP
Culture/NNP
Travel/NNP
and/CC
Northrop/NNP
./.
One/CD
subcommittee/NN
investigator/NN
,/,
who/WP
works/VBZ
for/IN
Chairman/NNP
John/NNP
Dingell/NNP
D./NNP
,/,
Mich./NNP
the/DT
information/NN
``/``
a/DT
major/JJ
step/NN
forward/RB
''/''
in/IN
its/PRP$
own/JJ
inquiry/NN
./.
A/DT
federal/JJ
grand/JJ
jury/NN
also/RB
is/VBZ
actively/RB
trying/VBG
to/TO
determine/VB
whether/IN
Northrop/NNP
violated/VBD
the/DT
Foreign/NNP
Corrupt/NNP
Practices/NNP
Act/NNP
./.
Northrop/NNP
has/VBZ
strongly/RB
denied/VBN
any/DT
illegalities/NNS
./.
It/PRP
said/VBD
that/IN
in/IN
August/NNP
it/PRP
made/VBD
an/DT
extensive/JJ
filing/NN
to/TO
the/DT
chamber/NN
that/WDT
rebuts/VBZ
,/,
point/NN
by/IN
point/NN
,/,
the/DT
allegations/NNS
by/IN
Asia/NNP
Culture/NNP
Travel/NNP
./.
A/DT
copy/NN
was/VBD
n't/RB
immediately/RB
available/JJ
./.
In/IN
a/DT
May/MD
8/CD
filing/NN
to/TO
the/DT
chamber/NN
,/,
though/RB
,/,
Northrop/NNP
stressed/VBD
its/PRP$
view/NN
that/IN
``/``
this/DT
is/VBZ
not/RB
a/DT
complex/JJ
case/NN
.../:
but/CC
is/VBZ
instead/RB
a/DT
straightforward/JJ
breach-of-contract/JJ
dispute/NN
./.
''/''
The/DT
company/NN
added/VBD
that/IN
Asia/NNP
Culture/NNP
Travel/NNP
's/POS
``/``
allegations/NNS
are/VBP
so/RB
contradictory/JJ
and/CC
inconsistent/JJ
that/IN
they/PRP
provide/VBP
powerful/JJ
evidence/NN
''/''
that/IN
the/DT
Koreans/NNPS
``/``
deceived/VBD
Northrop/NNP
''/''
by/IN
pitching/VBG
the/DT
hotel/NN
project/NN
./.
But/CC
Asia/NNP
Culture/NNP
Travel/NNP
lays/VBZ
out/RP
a/DT
much/RB
different/JJ

story/NN
in/IN
its/PRP$
52-page/JJ
brief/NN
./.
Northrop/NNP
's/POS
first/JJ
contact/NN
with/IN
the/DT
Koreans/NNPS
,/,
this/DT
version/NN
of/IN
the/DT
tangled/JJ
events/NNS
goes/VBZ
,/,
occurred/VBD
in/IN
the/DT
summer/NN
of/IN
1983/CD
when/WRB
Northrop/NNP
approached/VBD
Dong/NNP
Yang/NNP
Express/NNP
Co./NNP
,/,
a/DT
bus/NN
company/NN
that/WDT
was/VBD
run/VBN
by/IN
Lee/NNP
MinHa/NNP
./.
His/PRP$
brother-in-law/NN
was/VBD
the/DT
late/JJ
Park/NNP
Chong/NNP
Kyu/NNP
,/,
a/DT
powerful/JJ
businessman/NN
./.
Mr./NNP
Park/NNP
,/,
the/DT
pistol-packing/JJ
owner/NN
of/IN
a/DT
notorious/JJ
Seoul/NNP
night/NN
spot/NN
called/VBN
the/DT
Safari/NNP
Club/NNP
,/,
was/VBD
a/DT
member/NN
of/IN
the/DT
Seoul/NNP
Olympic/NNP
Organizing/NNP
Committee/NNP
with/IN
easy/JJ
access/NN
to/TO
the/DT
highest/JJS
echelons/NNS
of/IN
the/DT
Korean/JJ
government/NN
./.
The/DT
brief/NN
alleges/NNS
that/IN
Northrop/NNP
,/,
by/IN
way/NN
of/IN
a/DT
Honolulu-based/JJ
consultant/NN
named/VBN
James/NNP
Shin/NNP
,/,
proposed/VBD
the/DT
idea/NN
of/IN
selling/VBG
to/TO
Korea/NNP
as/RB
many/JJ
as/IN
200/CD
F-20s/NNPS
through/IN
Dong/NNP
Yang/NNP
Express/NNP
,/,
which/WDT
was/VBD
to/TO
receive/VB
a/DT
2/CD
%/NN
commission/NN
with/IN
a/DT
$/$
55/CD
million/CD
cap/NN
./.
As/IN
part/NN
of/IN
the/DT
arrangement/NN
,/,
the/DT
document/NN
contends/VBZ
,/,
Northrop/NNP
was/VBD
asked/VBN
to/TO
invest/VB
in/IN
the/DT
Sofitel/NNP
Seoul/NNP
,/,
``/``
a/DT
high-class/JJ
hotel/NN
''/''
that/WDT
was/VBD
to/TO
be/VB
built/VBN
on/IN
the/DT
site/NN
of/IN
a/DT
Dong/NNP
Yang/NNP
Express/NNP
garage/NN
./.
Though/IN
it/PRP
is/VBZ
typical/JJ
for/IN
American/JJ
companies/NNS
to/TO
invest/VB
in/IN
foreign/JJ
countries/NNS
in/IN
which/WDT
they/PRP
want/VBP
to/TO
trade/VB
arms/NNS
,/,
thereby/RB
offsetting/VBG
the/DT
cost/NN
of/IN
currency/NN
conversion/NN
on/IN
its/PRP$
contracts/NNS
to/TO
the/DT
overseas/JJ
government/NN
,/,
it/PRP
was/VBD
still/RB
initially/RB
puzzling/JJ
why/WRB
Northrop/NNP
approached/VBD
a/DT
bus/NN
company/NN
to/TO
do/VB
it/PRP
./.
``/``
I/PRP
first/RB
thought/VBD
it/PRP
made/VBD
no/DT
sense/NN
to/TO
offer/VB
to/TO
an/DT
express/JJ
bus/NN
company/NN
the/DT
distribution/NN
of/IN
up-to-date/JJ
fighters/NNS
,/,
''/''
Mr./NNP
Lee/NNP
told/VBD
public/JJ
prosecutors/NNS
in/IN
Seoul/NNP
who/WP
have/VBP
also/RB
investigated/VBN
the/DT
situation/NN
,/,
according/VBG
to/TO
the/DT
document/NN
./.
``/``
But/CC
later/RB
I/PRP
learned/VBD
that/IN
it/PRP
was/VBD
not/RB
Dong/NNP
Yang/NNP
Express/NNP
but/CC
Mr./NNP
Park/NNP
Chong/NNP
Kyu/NNP
that/IN
Northrop/NNP
aimed/VBD
to/TO
contact/VB
./.
''/''
In/IN
May/NNP
1984/CD
,/,
the/DT
document/NN
asserts/VBZ
,/,
Northrop/NNP
officials/NNS
met/VBD
with/IN
Mr./NNP
Park/NNP
--/:
known/VBN
best/RBS
to/TO
Americans/NNPS
as/IN
C.K./NNP
Park/NNP
--/:
and/CC
allegedly/RB
asked/VBD
him/PRP
to/TO
``/``
perform/VB
promotional/JJ
activities/NNS
''/''
for/IN
the/DT
F-20/NNP
./.
The/DT
brief/NN
says/VBZ
Mr./NNP
Park/NNP
then/RB
asked/VBD
for/IN
$/$
5/CD
million/CD
up/IN|RB
front/NN
,/,
adding/VBG
that/IN
``/``
he/PRP
could/MD
procure/VB
such/JJ
expenses/NNS
from/IN
the/DT
budget/NN
for/IN
the/DT
Sofitel/NNP
Hotel/NNP
project/NN
if/IN
approved/VBN
by/IN
Northrop/NNP
./.
''/''
But/CC
Northrop/NNP
declined/VBD
,/,
the/DT
brief/NN
says/VBZ
,/,
when/WRB
its/PRP$
representatives/NNS
pointed/VBD
out/RP
that/IN
a/DT
payoff/NN
would/MD
be/VB
illegal/JJ
and/CC
``/``
such/PDT
a/DT
payment/NN
,/,
if/IN
done/VBN
,/,
would/MD
constitute/VB
a/DT
scandal/NN
./.
''/''
Yet/CC
the/DT
document/NN
alleges/VBZ
that/IN
it/PRP
did/VBD
n't/RB
take/VB
long/RB
before/IN
Northrop/NNP
and/CC
Mr./NNP
Park/NNP
devised/VBD
a/DT
new/JJ
scheme/NN
to/TO
funnel/VB
the/DT
money/NN
./.
The/DT
conduit/NN
,/,
the/DT
filing/NN
insists/VBZ
,/,
was/VBD
to/TO
be/VB
another/DT
hotel/NN
project/NN
--/:
this/DT
time/NN
a/DT
joint/JJ
venture/NN
with/IN
Asia/NNP
Culture/NNP
Travel/NNP
,/,
another/DT
Park-affiliated/JJ
concern/NN
./.
Promotional/JJ
materials/NNS
touting/VBG
Asia/NNP
Culture/NNP
Travel/NNP
were/VBD
delivered/VBN
to/TO
Northrop/NNP
and/CC
appear/VB
to/TO
have/VB
been/VBN
signed/VBN
by/IN
Kang/NNP
Oh-Hyun/NNP
,/,
an/DT
official/NN
of/IN
the/DT
firm/NN
;/:
in/IN
fact/NN
,/,
the/DT
filing/NN
alleges/NNS
,/,
they/PRP
were/VBD
forged/VBN
by/IN
Mr./NNP
Shin/NNP
,/,
the/DT
Northrop/NNP
consultant/NN
./.
The/DT
brief/NN
says/VBZ
other/JJ
procedural/JJ
forms/NNS
relating/VBG
to/TO
the/DT
joint/JJ
venture/NN
appear/VBP
to/TO
have/VB
been/VBN
signed/VBN
by/IN
four/CD
Asia/NNP
Culture/NNP
Travel/NNP
shareholders/NNS
when/WRB
Mr./NNP
Park/NNP
came/VBD
to/TO
Los/NNP
Angeles/NNP
in/IN
the/DT
summer/NN
of/IN
1984/CD
for/IN
the/DT
Olympic/NNP
Games/NNP
./.
But/CC
three/CD
of/IN
the/DT
holders/NNS
,/,
the/DT
filing/NN
says/VBZ
,/,
were/VBD
n't/RB
in/IN
California/NNP
at/IN
the/DT
time/NN
./.
On/IN
Aug./NNP
9/CD
,/,
1984/CD
,/,
Northrop/NN
told/VBD
Mr./NNP
Park/NNP
that/IN
$/$
6,250,000/CD
had/VBD
been/VBN
deposited/VBN
to/TO
an/DT
account/NN
in/IN
Hong/NNP
Kong/NNP
that/WDT
he/PRP
controlled/VBD
./.
Everything/NN
,/,
the/DT
arbitration/NN
filing/NN
suggests/VBZ
,/,
seemed/VBD
set/VBN
./.
That/DT
is/VBZ
,/,
at/IN
least/JJS
until/IN
October/NNP
when/WRB
,/,
during/IN
a/DT
test/NN
flight/NN
,/,
an/DT
F-20/NNP
crashed/VBD
./.
The/DT
pilot/NN
was/VBD
killed/VBN
and/CC
the/DT
aircraft/NN
destroyed/VBN
./.
Shortly/RB
thereafter/RB
another/DT
F-20/NNP
crashed/VBD
in/IN
Canada/NNP
during/IN
a/DT
demonstration/NN
,/,
and/CC
Northrop/NNP
eventually/RB
gave/VBD
up/RP
on/IN
the/DT
F-20/NNP
program/NN
after/IN
out-of-pocket/JJ
expenditures/NNS
of/IN
more/JJR
than/IN
$/$
1/CD
billion/CD
./.
Mr./NNP
Park/NNP
died/VBD
of/IN
cancer/NN
in/IN
1985/CD
./.
Meanwhile/RB
,/,
Northrop/NNP
's/POS
own/JJ
board/NN
began/VBD
inquiring/VBG
about/IN
what/WP
happened/VBD
to/TO
the/DT
hotel/NN
--/:
the/DT
Seoul/NNP
Palace/NNP
,/,
it/PRP
was/VBD
to/TO
be/VB
called/VBN
--/:
and/CC
the/DT
$/$
6,250,000/CD
./.
It/PRP
was/VBD
at/IN
that/DT
point/NN
,/,
the/DT
filing/NN
alleges/VBZ
,/,
that/IN
a/DT
cover-up/NN
began/VBD
./.
First/RB
,/,
the/DT
brief/NN
says/VBZ
,/,
Northrop/NNP
wanted/VBD
to/TO
formally/RB
cancel/VB
with/IN
Dong/NNP
Yang/NNP
Express/NNP
the/DT
earlier/JJR
Sofitel/NNP
Hotel/NNP
transaction/NN
that/WDT
had/VBD
been/VBN
proposed/VBN
./.
The/DT
idea/NN
,/,
the/DT
filing/NN
alleges/NNS
,/,
was/VBD
to/TO
be/VB
able/JJ
to/TO
transfer/VB
to/TO
Dong/NNP
Yang/NNP
Express/NNP
$/$
3.5/CD
million/CD
in/IN
termination/NN
fees/NNS
./.
Donald/NNP
Foulds/NNP
,/,
a/DT
Northrop/NNP
executive/NN
,/,
even/RB
allegedly/RB
drafted/VBD
the/DT
settlement/NN
claim/NN
for/IN
Dong/NNP
Yang/NNP
Express/NNP
./.
Mr./NNP
Foulds/NNP
's/POS
attorney/NN
,/,
Jan/NNP
Handzlik/NNP
,/,
said/VBD
his/PRP$
client/NN
``/``
denies/VBZ
that/IN
he/PRP
engaged/VBD
in/IN
any/DT
improper/JJ
activity/NN
in/IN
respect/NN
to/TO
the/DT
Korean/JJ
hotel/NN
project/NN
,/,
including/VBG
any/DT
cover-up/NN
activities/NNS
./.
''/''
That/DT
money/NN
,/,
investigators/NNS
for/IN
the/DT
House/NN
subcommittee/NN
said/VBD
,/,
was/VBD
in/IN
turn/NN
designed/VBN
to/TO
be/VB
handed/VBN
back/RB
to/TO
Northrop/VB
to/TO
help/VB
it/PRP
account/VB
for/IN
more/JJR
than/IN
half/NN
of/IN
the/DT
missing/JJ
$/$
6,250,000/CD
./.
Of/IN
the/DT
remainder/NN
,/,
the/DT
filing/NN
maintains/VBZ
,/,
$/$
1,750,000/CD
could/MD
be/VB
chalked/VBN
up/RP
to/TO
expenses/NNS
and/CC
$/$
1/CD
million/CD
was/VBD
available/JJ
through/IN
a/DT
Park/NNP
bank/NN
account/NN
./.
But/CC
,/,
the/DT
filing/NN
says/VBZ
,/,
that/DT
plan/NN
had/VBD
to/TO
be/VB
killed/VBN
when/WRB
``/``
the/DT
blackmailers/NNS
appear/VBP
./.
''/''
The/DT
first/JJ
allegedly/RB
was/VBD
a/DT
Dong/NNP
Yang/NNP
Express/NNP
middleman/NN
,/,
who/WP
told/VBD
James/NNP
Dorsey/NNP
,/,
a/DT
Honolulu-based/JJ
Northrop/NNP
marketing/NN
executive/NN
,/,
that/IN
he/PRP
would/MD
``/``
publish/VB
all/PDT
the/DT
facts/NNS
concerning/VBG
Northrop/NNP
's/POS
efforts/NNS
to/TO
sell/VB
the/DT
F-20/NNP
to/TO
the/DT
Korean/JJ
government/NN
,/,
''/''
the/DT
document/NN
says/VBZ
./.
Both/CC
Mr./NNP
Dorsey/NNP
and/CC
his/PRP$
lawyer/NN
,/,
Daniel/NNP
Bookin/NNP
,/,
declined/VBD
to/TO
comment/VB
./.
Welko/NNP
Gasich/NNP
,/,
then/RB
a/DT
top/JJ
Northrop/NN
executive/NN
,/,
allegedly/RB
handed/VBD
over/RP
$/$
1.5/CD
million/CD
to/TO
Dong/NNP
Yang/NNP
Express/NNP
,/,
which/WDT
passed/VBD
on/RP
$/$
500,000/CD
to/TO
silence/VB
the/DT
middleman/NN
,/,
the/DT
document/NN
claims/VBZ
./.
Mr./NNP
Gasich/NNP
declined/VBD
to/TO
comment/VB
;/:
the/DT
middleman/NN
could/MD
n't/RB
be/VB
located/VBN
./.
In/IN
early/RB
1987/CD
,/,
the/DT
arbitration/NN
filing/NN
asserts/VBZ
,/,
Mr./NNP
Shin/NNP
,/,
the/DT
Northrop/NNP
consultant/NN
,/,
demanded/VBD
$/$
2/CD
million/CD
to/TO
remain/VB
silent/JJ
./.
Mr./NNP
Shin/NNP
,/,
who/WP
is/VBZ
being/VBG
sued/VBN
by/IN
Northrop/NNP
in/IN
federal/JJ
court/NN
in/IN
Honolulu/NNP
,/,
could/MD
n't/RB
be/VB
reached/VBN
./.
It/PRP
was/VBD
then/RB
that/IN
Northrop/NNP
filed/VBD
suit/NN
against/IN
the/DT
Koreans/NNPS
--/:
in/IN
what/WP
the/DT
House/NN
investigators/NNS
claim/VBP
was/VBD
an/DT
attempt/NN
to/TO
make/VB
it/PRP
look/VB
as/IN
if/IN
Northrop/NNP
had/VBD
been/VBN
swindled/VBN
./.
The/DT
company/NN
is/VBZ
asking/VBG
the/DT
International/NNP
Chamber/NNP
of/IN
Commerce/NNP
to/TO
order/VB
Asia/NNP
Culture/NNP
Travel/NNP
and/CC
its/PRP$
associates/NNS
to/TO
return/VB
the/DT
$/$
6,250,000/CD
,/,
plus/CC
interest/NN
``/``
at/IN
the/DT
highest/JJS
lawful/JJ
rate/NN
./.
''/''
A.H./NNP
Belo/NNP
Corp./NNP
said/VBD
it/PRP
asked/VBD
the/DT
Federal/NNP
Communications/NNP
Commission/NNP
to/TO
dismiss/VB
a/DT
request/NN
by/IN
the/DT
Dallas/NNP
Times/NNP
Herald/NNP
calling/VBG
for/IN
the/DT
FCC/NNP
to/TO
revoke/VB
Belo/NNP
's/POS
Dallas/NNP
television/NN
license/NN
./.
In/IN
a/DT
response/NN
to/TO
the/DT
commission/NN
,/,
Belo/NNP
,/,
owner/NN
of/IN
the/DT
Dallas/NNP
Morning/NNP
News/NNP
,/,
WFAA-TV/NNP
in/IN
Dallas/NNP
and/CC
other/JJ
TV/NN
stations/NNS
,/,
said/VBD
that/IN
the/DT
Times/NNP
Herald/NNP
's/POS
complaint/NN
is/VBZ
``/``
without/IN
merit/NN
''/''
and/CC
is/VBZ
an/DT
effort/NN
to/TO
gain/VB
leverage/NN
in/IN
a/DT
legal/JJ
battle/NN
./.
The/DT
Dallas/NNP
Times/NNP
Herald/NNP
filed/VBD
the/DT
request/NN
with/IN
the/DT
FCC/NNP
earlier/RBR
this/DT
month/NN
,/,
charging/VBG
that/IN
an/DT
agreement/NN
between/IN
Belo/NNP
and/CC
Universal/NNP
Press/NNP
Syndicate/NNP
is/VBZ
intended/VBN
to/TO
eliminate/VB
newspaper/NN
competition/NN
in/IN
Dallas/NNP
./.
The/DT
Belo-Universal/NNP
agreement/NN
calls/VBZ
for/IN
the/DT
two/CD
companies/NNS
to/TO
study/VB
developing/VBG
television/NN
programs/NNS
based/VBN
on/IN
Universal/NNP
's/POS
features/NNS
./.
As/IN
part/NN
of/IN
the/DT
agreement/NN
,/,
Universal/NNP
moved/VBD
26/CD
features/NNS
,/,
including/VBG
``/``
Doonesbury/NNP
,/,
''/''
``/``
The/DT
Far/NNP
Side/NNP
''/''
and/CC
Dear/NNP
Abby/NNP
,/,
to/TO
the/DT
Morning/NNP
News/NNP
from/IN
the/DT
Times/NNP
Herald/NNP
./.
A/DT
lawsuit/NN
filed/VBN
by/IN
the/DT
Times/NNP
Herald/NNP
against/IN
Belo/NNP
charging/VBG
antitrust/JJ
law/NN
violations/NNS
and/CC
interference/NN
with/IN
a/DT
contract/NN
is/VBZ
pending/VBG|JJ
in/IN
Houston/NNP
state/NN
court/NN
./.
Arnold/NNP
C./NNP
Pohs/NNP
was/VBD
officially/RB
named/VBN
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
Cellular/NNP
Inc./NNP
,/,
a/DT
provider/NN
of/IN
management/NN
,/,
financing/NN
and/CC
operating/NN
services/NNS
to/TO
cellular-telephone/NN
systems/NNS
./.
Mr./NNP
Pohs/NNP
,/,
previously/RB
executive/JJ
vice/NN
president/NN
and/CC
chief/NN
operating/NN
officer/NN
,/,
was/VBD
named/VBN
interim/JJ
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
after/IN
David/NNP
M./NNP
Harrold/NNP
,/,
a/DT
company/NN
founder/NN
,/,
resigned/VBD
from/IN
the/DT
posts/NNS
for/IN
personal/JJ
reasons/NNS
in/IN
August/NNP
./.
Cellular/NNP
said/VBD
Robert/NNP
J./NNP
Lunday/NNP
Jr./NNP
,/,
its/PRP$
chairman/NN
and/CC
another/DT
founder/NN
,/,
resigned/VBD
from/IN
the/DT
company/NN
's/POS
board/NN
to/TO
pursue/VB
the/DT
sale/NN
of/IN
his/PRP$
telephone/NN
company/NN
,/,
Big/NNP
Sandy/NNP
Telecommunications/NNP
Inc/NNP
./.
A/DT
new/JJ
director/NN
has/VBZ
n't/RB
been/VBN
named/VBN
to/TO
fill/VB
that/DT
seat/NN
,/,
which/WDT
expires/VBZ
in/IN
1992/CD
./.
Mr./NNP
Pohs/NNP
said/VBD
the/DT
board/NN
probaby/NN
will/MD
elect/VB
a/DT
new/JJ
chairman/NN
at/IN
its/PRP$
meeting/NN
Nov/NNP
./.
In/IN
addition/NN
,/,
the/DT
company/NN
said/VBD
Monroe/NNP
M./NNP
Rifkin/NNP
,/,
a/DT
cable/NN
television/NN
investor/NN
and/CC
consultant/NN
,/,
was/VBD
elected/VBN
a/DT
director/NN
,/,
filling/VBG
a/DT
vacant/JJ
seat/NN
that/WDT
will/MD
expire/VB
in/IN
1991/CD
./.
The/DT
board/NN
currently/RB
has/VBZ
six/CD
members/NNS
,/,
but/CC
is/VBZ
expanding/VBG
to/TO
nine/CD
,/,
Mr./NNP
Pohs/NNP
said/VBD
./.
France/NNP
's/POS
Banque/NNP
Indosuez/NNP
shocked/VBD
London/NNP
markets/NNS
by/IN
moving/VBG
to/TO
become/VB
the/DT
dominant/JJ
shareholder/NN
in/IN
prestigious/JJ
but/CC
troubled/JJ
merchant/NN
bank/NN
Morgan/NNP
Grenfell/NNP
Group/NNP
PLC/NNP
./.
Indosuez/NNP
said/VBD
it/PRP
has/VBZ
agreed/VBN
to/TO
purchase/VB
Willis/NNP
Faber/NNP
PLC/NNP
's/POS
20.4/CD
%/NN
stake/NN
in/IN
Morgan/NNP
Grenfell/NNP
,/,
by/IN
far/RB
the/DT
largest/JJS
single/JJ
holding/NN
in/IN
the/DT
bank/NN
./.
That/DT
would/MD
bring/VB
Indosuez/NNP
's/POS
total/JJ
stake/NN
to/TO
24.8/CD
%/NN
,/,
Indosuez/NNP
said/VBD
./.
While/IN
awaiting/VBG
Bank/NNP
of/IN
England/NNP
permission/NN
to/TO
pass/VB
the/DT
15/CD
%/NN
mark/NN
,/,
Indosuez/NNP
said/VBD
,/,
it/PRP
has/VBZ
agreed/VBN
to/TO
purchase/VB
immediately/RB
a/DT
10.5/CD
%/NN
share/NN
in/IN
the/DT
bank/NN
for/IN
410/CD
pence/NNS
$/$
6.62/CD
a/DT
share/NN
,/,
bringing/VBG
its/PRP$
stake/NN
to/TO
14.9/CD
%/NN
./.
It/PRP
then/RB
intends/VBZ
to/TO
acquire/VB
the/DT
remaining/VBG
Willis/NNP
stake/NN
at/IN
462/CD
pence/NNS
a/DT
share/NN
./.
The/DT
transaction/NN
still/RB
must/MD
be/VB
cleared/VBN
by/IN
Willis/NNP
shareholders/NNS
./.
Morgan/NNP
Grenfell/NNP
shares/NNS
jumped/VBD
38/CD
pence/NNS
to/TO
400/CD
pence/NNS
on/IN
London/NNP
's/POS
stock/NN
exchange/NN
./.
Indosuez/NNP
said/VBD
it/PRP
has/VBZ
agreed/VBN
that/IN
,/,
barring/VBG
a/DT
major/JJ
change/NN
in/IN
Morgan/NNP
Grenfell/NNP
's/POS
situation/NN
,/,
it/PRP
wo/MD
n't/RB
launch/VB
a/DT
full/JJ
takeover/NN
bid/NN
for/IN
at/IN
least/JJS
a/DT
year/NN
./.
But/CC
despite/IN
signs/NNS
that/IN
Morgan/NNP
Grenfell/NNP
staff/NN
was/VBD
unhappy/JJ
at/IN
the/DT
sudden/JJ
investment/NN
,/,
Indosuez/NNP
Chairman/NNP
Antoine/NNP
Jeancourt-Galignani/NNP
said/VBD
he/PRP
will/MD
begin/VB
linking/VBG
the/DT
two/CD
banks/NNS
into/IN
``/``
an/DT
important/JJ
merchant/NN
banking/NN
group/NN
in/IN
Europe/NNP
./.
''/''
In/IN
a/DT
telephone/NN
interview/NN
,/,
Morgan/NNP
Grenfell/NNP
Chairman/NNP
John/NNP
Craven/NNP
said/VBD
the/DT
Indosuez/NNP
holding/NN
``/``
was/VBD
n't/RB
one/CD
that/WDT
was/VBD
taken/VBN
at/IN
our/PRP$
initiative/NN
,/,
''/''
adding/VBG
that/IN
Morgan/NNP
Grenfell/NNP
``/``
remains/VBZ
perfectly/RB
confident/JJ
in/IN
the/DT
future/NN
of/IN
our/PRP$
business/NN
as/IN
an/DT
independent/JJ
entity/NN
./.
''/''
Mr./NNP
Craven/NNP
added/VBD
he/PRP
held/VBD
``/``
important/JJ
discussions/NNS
''/''
yesterday/NN
with/IN
Indosuez/NNP
officials/NNS
about/IN
the/DT
possible/JJ
benefits/NNS
of/IN
a/DT
combination/NN
,/,
and/CC
that/IN
Morgan/NNP
Grenfell/NNP
's/POS
attitude/NN
``/``
is/VBZ
entirely/RB
objective/JJ
./.
''/''
He/PRP
added/VBD
:/:
``/``
My/PRP$
understanding/NN
of/IN
what/WP
I/PRP
have/VBP
heard/VBN
is/VBZ
that/IN
their/PRP$
intentions/NNS
are/VBP
very/RB
long/JJ
term/NN
./.
I/PRP
guess/VBP
if/IN
they/PRP
get/VBP
to/TO
25/CD
%/NN
''/''
Morgan/NNP
Grenfell/NNP
would/MD
be/VB
a/DT
troublesome/JJ
target/NN
for/IN
another/DT
counterbidder/NN
,/,
he/PRP
added/VBD
./.
In/IN
a/DT
statement/NN
,/,
Morgan/NNP
Grenfell/NNP
said/VBD
it/PRP
now/RB
seeks/VBZ
further/JJR
clarification/NN
of/IN
Indosuez/NNP
's/POS
intentions/NNS
./.
Mr./NNP
Jeancourt-Galignani/NNP
refused/VBD
to/TO
say/VB
whether/IN
Indosuez/NNP
will/MD
bid/VB
for/IN
all/DT
of/IN
Morgan/NNP
Grenfell/NNP
when/WRB
its/PRP$
year/NN
is/VBZ
up/RB
./.
If/IN
it/PRP
does/VBZ
,/,
the/DT
operation/NN
would/MD
be/VB
one/CD
of/IN
the/DT
largest/JJS
foreign/JJ
purchases/NNS
of/IN
a/DT
U.K/NNP
merchant/NN
bank/NN
./.
It/PRP
would/MD
catapult/VB
Indosuez/NNP
from/IN
the/DT
position/NN
of/IN
a/DT
marginal/JJ
London/NNP
player/NN
,/,
with/IN
strong/JJ
Asian/JJ
and/CC
Middle/JJ
Eastern/JJ
activities/NNS
,/,
to/TO
the/DT
upper/JJ
levels/NNS
of/IN
the/DT
U.K./NNP
merchant/NN
banking/NN
scene/NN
./.
It/PRP
is/VBZ
part/NN
of/IN
Indosuez/NNP
's/POS
overall/JJ
plan/NN
of/IN
building/VBG
its/PRP$
business/NN
across/IN
Europe/NNP
,/,
as/IN
the/DT
1992/CD
reduction/NN
of/IN
European/NNP
Community/NNP
market/NN
barriers/NNS
looms/VBZ
./.
Mr./NNP
Jeancourt-Galignani/NNP
said/VBD
Indosuez/NNP
had/VBD
to/TO
move/VB
fast/RB
because/IN
it/PRP
feared/VBD
that/IN
another/DT
investor/NN
--/:
widely/RB
rumored/VBN
to/TO
be/VB
Deutsche/NNP
Bank/NNP
--/:
was/VBD
buying/VBG
shares/NNS
heavily/RB
./.
Indosuez/NNP
said/VBD
it/PRP
believes/VBZ
Deutsche/NNP
Bank/NNP
currently/RB
has/VBZ
a/DT
4.9/CD
%/NN
stake/NN
,/,
but/CC
it/PRP
refused/VBD
to/TO
say/VB
who/WP
it/PRP
believed/VBD
was/VBD
buying/VBG
./.
It/PRP
said/VBD
Deutsche/NNP
Bank/NNP
is/VBZ
the/DT
largest/JJS
other/JJ
holding/NN
it/PRP
knows/VBZ
of/IN
./.
Indosuez/NNP
completed/VBD
the/DT
purchase/NN
in/IN
just/RB
two/CD
weeks/NNS
,/,
and/CC
market/NN
sentiment/NN
is/VBZ
that/IN
Indosuez/NNP
's/POS
rush/NN
led/VBD
it/PRP
to/TO
pay/VB
a/DT
high/JJ
price/NN
,/,
but/CC
French/JJ
analysts/NNS
tended/VBD
to/TO
welcome/VB
the/DT
investment/NN
./.
``/``
The/DT
logic/NN
is/VBZ
that/DT
Indosuez/NNP
is/VBZ
a/DT
French/JJ
investment/NN
bank/NN
with/IN
a/DT
lot/NN
of/IN
market/NN
activities/NNS
,/,
but/CC
not/RB
a/DT
lot/NN
of/IN
fund/NN
management/NN
,/,
''/''
said/VBD
Romain/NNP
Burnand/NNP
,/,
a/DT
financial/JJ
analyst/NN
at/IN
Paris/NNP
brokerage/NN
Cholet-Dupont/NNP
&/CC
Cie/NNP
./.
He/PRP
said/VBD
Morgan/NNP
Grenfell/NNP
manages/VBZ
about/RB
#/#
7/CD
billion/CD
pounds/NNS
$/$
11.3/CD
billion/CD
investment/NN
funds/NNS
./.
``/``
It/PRP
is/VBZ
a/DT
force/NN
in/IN
the/DT
market/NN
and/CC
has/VBZ
a/DT
very/RB
good/JJ
international/JJ
image/NN
,/,
''/''
Mr./NNP
Burnand/NNP
said/VBD
./.
``/``
The/DT
problem/NN
is/VBZ
that/IN
executives/NNS
are/VBP
volatile/JJ
./.
They/PRP
can/MD
leave/VB
when/WRB
they/PRP
are/VBP
unhappy/JJ
./.
''/''
One/CD
year/NN
after/IN
hitting/VBG
the/DT
auction/NN
block/NN
,/,
RJR/NNP
Nabisco/NNP
Inc./NNP
resembles/VBZ
a/DT
runner/NN
in/IN
a/DT
long-distance/JJ
race/NN
:/:
The/DT
first/JJ
mile/NN
has/VBZ
been/VBN
almost/RB
flawless/JJ
,/,
but/CC
the/DT
pace/NN
may/MD
be/VB
difficult/JJ
to/TO
maintain/VB
./.
Under/IN
buyer/NN
Kohlberg/NNP
Kravis/NNP
Roberts/NNP
&/CC
Co./NNP
,/,
which/WDT
acquired/VBD
the/DT
food/NN
and/CC
tobacco/NN
giant/NN
for/IN
$/$
25/CD
billion/CD
in/IN
February/NNP
,/,
RJR/NNP
has/VBZ
kept/VBN
pace/NN
with/IN
an/DT
ambitious/JJ
schedule/NN
to/TO
pare/VB
its/PRP$
massive/JJ
debt/NN
load/NN
./.
But/CC
events/NNS
beyond/IN
the/DT
company/NN
's/POS
control/NN
--/:
namely/RB
the/DT
skittish/JJ
bond/NN
markets/NNS
--/:
could/MD
have/VB
a/DT
big/JJ
effect/NN
on/IN
the/DT
buy-out/NN
's/POS
profitability/NN
./.
And/CC
rumors/NNS
resurfaced/VBD
yesterday/NN
that/IN
RJR/NNP
's/POS
planned/JJ
$/$
1.48/CD
billion/CD
sale/NN
of/IN
its/PRP$
Del/NNP
Monte/NNP
canned/JJ
foods/NNS
unit/NN
might/MD
fall/VB
through/RP
./.
If/IN
the/DT
Del/NNP
Monte/NNP
deal/NN
does/VBZ
hit/VB
a/DT
snag/NN
,/,
it/PRP
would/MD
be/VB
the/DT
first/JJ
setback/NN
in/IN
an/DT
otherwise/RB
successful/JJ
year/NN
./.
Since/IN
February/NNP
,/,
RJR/NNP
has/VBZ
been/VBN
a/DT
study/NN
in/IN
perpetual/JJ
motion/NN
./.
It/PRP
has/VBZ
moved/VBN
its/PRP$
headquarters/NNS
here/RB
from/IN
Atlanta/NNP
,/,
shed/VBN
about/IN
2,000/CD
employees/NNS
,/,
sold/VBN
businesses/NNS
accounting/VBG
for/IN
nearly/RB
a/DT
quarter/NN
of/IN
its/PRP$
$/$
17/CD
billion/CD
revenue/NN
base/NN
,/,
and/CC
kicked/VBD
what/WP
is/VBZ
called/VBN
the/DT
``/``
loading/NN
''/''
habit/NN
,/,
the/DT
practice/NN
of/IN
shipping/VBG
distributors/NNS
billions/NNS
of/IN
cigarettes/NNS
that/IN
stuff/VBP
inventories/NNS
but/CC
are/VBP
never/RB
consumed/VBN
./.
So/IN
far/RB
,/,
history/NN
's/POS
biggest/JJS
leveraged/JJ
buy-out/NN
looks/VBZ
good/JJ
from/IN
a/DT
financial/JJ
standpoint/NN
./.
In/IN
the/DT
first/JJ
six/CD
months/NNS
this/DT
year/NN
,/,
RJR/NNP
's/POS
operating/NN
profit/NN
soared/VBD
21/CD
%/NN
from/IN
the/DT
year-earlier/JJ
period/NN
./.
The/DT
results/NNS
have/VBP
led/VBN
analysts/NNS
to/TO
predict/VB
that/IN
the/DT
company/NN
's/POS
1989/CD
cash/NN
flow/NN
will/MD
be/VB
more/JJR
than/IN
20/CD
%/NN
ahead/RB
of/IN
the/DT
debt-coverage/JJ
ratio/NN
required/VBN
by/IN
RJR/NNP
's/POS
banks/NNS
./.
``/``
We/PRP
're/VBP
acting/VBG
like/IN
we/PRP
're/VBP
not/RB
an/DT
LBO/NNP
company/NN
,/,
''/''
said/VBD
a/DT
beaming/JJ
Louis/NNP
Gerstner/NNP
Jr./NNP
,/,
RJR/NNP
's/POS
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
./.
But/CC
there/EX
are/VBP
clouds/NNS
on/IN
the/DT
horizon/NN
./.
Much/JJ
of/IN
KKR/NNP
's/POS
financing/NN
for/IN
the/DT
RJR/NNP
buy-out/JJ
is/VBZ
with/IN
so-called/JJ
payment-in-kind/JJ
debt/NN
,/,
notes/NNS
that/WDT
accumulate/VBP
interest/NN
in/IN
more/JJR
notes/NNS
and/CC
do/VBP
n't/RB
require/VB
cash/NN
payments/NNS
for/IN
several/JJ
years/NNS
./.
Although/IN
RJR/NNP
is/VBZ
having/VBG
no/DT
trouble/NN
meeting/VBG
cash-interest/JJ
payments/NNS
,/,
it/PRP
is/VBZ
too/RB
early/RB
to/TO
tell/VB
just/RB
how/WRB
onerous/JJ
the/DT
high-interest/JJ
PIK/NNP
notes/NNS
will/MD
be/VB
once/RB
they/PRP
come/VBP
due/RB
./.
Moreover/RB
,/,
asset/NN
sales/NNS
,/,
which/WDT
have/VBP
gone/VBN
smoothly/RB
so/RB
far/RB
,/,
could/MD
hit/VB
some/DT
hurdles/NNS
./.
Yesterday/NN
,/,
prices/NNS
of/IN
RJR/NNP
's/POS
high-yield/JJ
junk/NN
bonds/NNS
fell/VBD
on/IN
rumors/NNS
of/IN
problems/NNS
with/IN
the/DT
Del/NNP
Monte/NNP
deal/NN
./.
Since/IN
Oct./NNP
4/CD
,/,
the/DT
price/NN
of/IN
RJR/NNP
's/POS
junior/JJ
bonds/NNS
has/VBZ
fallen/VBN
by/IN
about/RB
14/CD
%/NN
./.
``/``
Everything/NN
had/VBD
gone/VBN
well/RB
until/IN
the/DT
junk/NN
market/NN
went/VBD
into/IN
disarray/NN
,/,
''/''
said/VBD
David/NNP
Goldman/NNP
,/,
an/DT
analyst/NN
with/IN
Nomura/NNP
Securities/NNP
International/NNP
Inc/NNP
./.
``/``
But/CC
from/IN
this/DT
point/NN
forward/RB
,/,
I/PRP
think/VBP
the/DT
jury/NN
is/VBZ
definitely/RB
out/RB
./.
''/''
In/IN
some/DT
respects/NNS
,/,
the/DT
deal/NN
is/VBZ
right/RB
on/IN
track/NN
./.
RJR/NNP
's/POS
operating/NN
profit/NN
from/IN
tobacco/NN
,/,
bolstered/VBN
by/IN
strong/JJ
overseas/JJ
sales/NNS
and/CC
manufacturing/NN
improvements/NNS
,/,
jumped/VBD
17/CD
%/NN
in/IN
the/DT
first/JJ
six/CD
months/NNS
./.
The/DT
tobacco/NN
business/NN
does/VBZ
have/VB
some/DT
long-term/JJ
problems/NNS
./.
Its/PRP$
brands/NNS
are/VBP
battered/VBN
by/IN
Philip/NNP
Morris/NNP
Cos./NNP
,/,
and/CC
it/PRP
is/VBZ
still/RB
unclear/JJ
whether/IN
KKR/NNP
will/MD
be/VB
able/JJ
to/TO
afford/VB
the/DT
major/JJ
overhaul/NN
to/TO
turn/VB
that/DT
business/NN
around/RP
./.
In/IN
the/DT
short/JJ
term/NN
,/,
however/RB
,/,
the/DT
tobacco/NN
unit/NN
will/MD
continue/VB
to/TO
throw/VB
off/RP
more/JJR
cash/NN
because/IN
of/IN
an/DT
estimated/JJ
$/$
500/CD
million/CD
in/IN
cost/NN
cuts/NNS
./.
Meanwhile/RB
,/,
RJR/NNP
's/POS
food/NN
business/NN
is/VBZ
surpassing/VBG
almost/RB
everybody/NN
's/POS
expectations/NNS
./.
RJR/NNP
operating/NN
income/NN
from/IN
food/NN
soared/VBD
31/CD
%/NN
in/IN
the/DT
six/CD
months/NNS
,/,
paced/VBN
by/IN
40/CD
%/NN
growth/NN
at/IN
its/PRP$
Nabisco/NNP
Brands/NNP
unit/NN
./.
Nabisco/NNP
has/VBZ
cut/VBN
costs/NNS
aggressively/RB
,/,
according/VBG
to/TO
John/NNP
Greeniaus/NNP
,/,
the/DT
unit/NN
's/POS
chief/JJ
executive/NN
./.
Savings/NNS
have/VBP
come/VBN
from/IN
firing/VBG
some/DT
high-paid/JJ
research/NN
engineers/NNS
,/,
ending/VBG
peripheral/JJ
marketing/NN
activities/NNS
such/JJ
as/IN
race-car/NN
promotions/NNS
and/CC
deferring/VBG
plant-modernization/JJ
plans/NNS
./.
Mr./NNP
Greeniaus/NNP
also/RB
says/VBZ
Nabisco/NNP
,/,
following/VBG
the/DT
lead/NN
of/IN
competitors/NNS
,/,
has/VBZ
been/VBN
``/``
relatively/RB
aggressive/JJ
''/''
in/IN
raising/VBG
prices/NNS
./.
But/CC
the/DT
big/JJ
story/NN
at/IN
Nabisco/NNP
this/DT
year/NN
is/VBZ
new/JJ
products/NNS
./.
The/DT
unit/NN
's/POS
Teddy/NNP
Grahams/NNPS
snack/NN
food/NN
has/VBZ
surged/VBN
to/TO
become/VB
the/DT
industry/NN
's/POS
third-selling/JJ
cookie/NN
in/IN
less/RBR
than/IN
a/DT
year/NN
on/IN
the/DT
market/NN
,/,
behind/IN
Nabisco/NNP
's/POS
own/JJ
Oreos/NNPS
and/CC
Chips/NNPS
Ahoy/NNP
!/.
brands/NNS
./.
Mr./NNP
Greeniaus/NNP
put/VBD
Teddy/NNP
Grahams/NNPS
'/POS
first-year/JJ
sales/NNS
at/IN
just/RB
under/IN
$/$
150/CD
million/CD
,/,
which/WDT
he/PRP
called/VBD
``/``
unprecedented/JJ
./.
''/''
Last/JJ
month/NN
,/,
Nabisco/NNP
brought/VBD
out/RP
a/DT
dozen/NN
more/JJR
new/JJ
products/NNS
./.
Next/JJ
year/NN
,/,
Mr./NNP
Greeniaus/NNP
said/VBD
,/,
Nabisco/NNP
's/POS
operating/NN
income/NN
should/MD
climb/VB
15/CD
%/NN
--/:
down/RB
from/IN
the/DT
expected/JJ
40/CD
%/NN
growth/NN
this/DT
year/NN
but/CC
above/IN
the/DT
10/CD
%/NN
level/NN
considered/VBN
strong/JJ
in/IN
the/DT
industry/NN
./.
RJR/NNP
's/POS
asset/NN
sales/NNS
will/MD
be/VB
on/IN
schedule/NN
,/,
too/RB
--/:
if/IN
the/DT
Del/NNP
Monte/NNP
deal/NN
is/VBZ
successful/JJ
./.
In/IN
June/NNP
,/,
RJR/NNP
got/VBD
$/$
2.5/CD
billion/CD
for/IN
its/PRP$
European/JJ
food/NN
units/NNS
,/,
which/WDT
it/PRP
used/VBD
,/,
along/IN
with/IN
about/RB
$/$
200/CD
million/CD
of/IN
other/JJ
proceeds/NNS
,/,
to/TO
pay/VB
down/RP
about/RB
$/$
2/CD
billion/CD
of/IN
a/DT
$/$
6/CD
billion/CD
bridge/NN
loan/NN
./.
RJR/NNP
owes/VBZ
another/DT
$/$
3/CD
billion/CD
on/IN
that/DT
loan/NN
by/IN
February/NNP
./.
It/PRP
expects/VBZ
to/TO
pay/VB
that/DT
with/IN

roughly/RB
$/$
1/CD
billion/CD
in/IN
sales/NNS
of/IN
assorted/JJ
small/JJ
assets/NNS
its/PRP$
20/CD
%/NN
stake/NN
in/IN
ESPN/NNP
,/,
its/PRP$
Butterfinger/NNP
and/CC
Baby/NNP
Ruth/NNP
candy/NN
bar/NN
brands/NNS
,/,
and/CC
its/PRP$
breakfast/NN
cereals/NNS
unit/NN
$/$
2/CD
billion/CD
from/IN
the/DT
two-part/JJ
sale/NN
of/IN
most/JJS
of/IN
Del/NNP
Monte/NNP
./.
A/DT
group/NN
led/VBN
by/IN
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
agreed/VBD
to/TO
acquire/VB
Del/NNP
Monte/NNP
last/JJ
month/NN
,/,
but/CC
the/DT
agreement/NN
is/VBZ
contingent/JJ
on/IN
the/DT
securities/NNS
firm/NN
's/POS
ability/NN
to/TO
finance/VB
about/RB
$/$
350/CD
million/CD
of/IN
the/DT
purchase/NN
price/NN
,/,
either/CC
by/IN
selling/VBG
junk/NN
bonds/NNS
or/CC
making/VBG
a/DT
bridge/NN
loan/NN
./.
The/DT
Del/NNP
Monte/NNP
purchase/NN
is/VBZ
scheduled/VBN
to/TO
close/VB
in/IN
late/JJ
December/NNP
./.
If/IN
it/PRP
does/VBZ
n't/RB
go/VB
through/RP
,/,
that/DT
could/MD
force/VB
KKR/NNP
to/TO
adjust/VB
the/DT
terms/NNS
of/IN
the/DT
sale/NN
or/CC
to/TO
sell/VB
other/JJ
assets/NNS
,/,
including/VBG
RJR/NNP
's/POS
food/NN
units/NNS
in/IN
Latin/NNP
America/NNP
and/CC
New/NNP
Zealand/NNP
,/,
the/DT
hot-cereals/NNS
division/NN
,/,
or/CC
even/RB
the/DT
Planter/NNP
's/POS
LifeSavers/NNPS
unit/NN
,/,
to/TO
meet/VB
the/DT
bank/NN
debt/NN
pay-down/JJ
time-table/NN
./.
Neither/CC
Merrill/NNP
,/,
RJR/NNP
nor/CC
KKR/NNP
would/MD
comment/VB
yesterday/NN
on/IN
the/DT
deal/NN
./.
Several/JJ
people/NNS
familiar/JJ
with/IN
the/DT
agreement/NN
said/VBD
Merrill/NN
has/VBZ
n't/RB
told/VBD
RJR/NNP
of/IN
any/DT
decision/NN
not/RB
to/TO
proceed/VB
with/IN
the/DT
purchase/NN
./.
By/IN
next/JJ
August/NNP
,/,
RJR/NNP
must/MD
pay/VB
the/DT
last/JJ
$/$
1/CD
billion/CD
of/IN
the/DT
bridge/NN
loan/NN
,/,
with/IN
half/PDT
that/DT
amount/NN
required/VBN
to/TO
come/VB
from/IN
more/JJR
asset/NN
sales/NNS
./.
Predictably/NNP
,/,
RJR/NNP
is/VBZ
taking/VBG
advantage/NN
of/IN
its/PRP$
improving/VBG
balance/NN
sheet/NN
to/TO
refinance/VB
some/DT
of/IN
its/PRP$
most/JJS
expensive/JJ
debt/NN
./.
Karl/JJ
von/NNP
der/NN
Heyden/NN
,/,
chief/JJ
financial/JJ
officer/NN
,/,
said/VBD
he/PRP
is/VBZ
talking/VBG
with/IN
bankers/NNS
about/IN
refinancing/VBG
between/IN
$/$
2.5/CD
billion/CD
and/CC
$/$
3/CD
billion/CD
of/IN
RJR/NNP
loans/NNS
at/IN
lower/JJR
interest/NN
rates/NNS
,/,
possibly/RB
securing/VBG
the/DT
refinanced/VBN
debt/NN
with/IN
some/DT
of/IN
RJR/NNP
's/POS
assets/NNS
./.
``/``
Conceptually/RB
,/,
the/DT
longer/RBR
we/PRP
wait/VBP
,/,
the/DT
better/JJR
our/PRP$
credit/NN
gets/VBZ
,/,
''/''
said/VBD
Mr./NNP
von/NNP
der/JJR
Heyden/NN
./.
``/``
There/EX
would/MD
have/VB
to/TO
be/VB
some/DT
cataclysmic/JJ
event/NN
for/IN
us/PRP
not/RB
to/TO
bring/VB
our/PRP$
interest/NN
rate/NN
down/RP
./.
''/''
But/CC
once/RB
the/DT
bridge/NN
loan/NN
is/VBZ
paid/VBN
off/RP
,/,
the/DT
company/NN
will/MD
still/RB
owe/VB
some/RB
$/$
19/CD
billion/CD
in/IN
various/JJ
types/NNS
of/IN
debt/NN
./.
And/CC
although/IN
the/DT
company/NN
apparently/RB
is/VBZ
meeting/VBG
its/PRP$
cash-interest/JJ
payments/NNS
with/IN
ease/NN
,/,
the/DT
clock/NN
is/VBZ
ticking/VBG
on/IN
its/PRP$
non-cash/JJ
notes/NNS
--/:
to/TO
the/DT
tune/NN
of/IN
about/RB
$/$
1.4/CD
billion/CD
of/IN
accrued/JJ
interest/NN
this/DT
year/NN
,/,
with/IN
the/DT
amounts/NNS
expected/VBN
to/TO
rise/VB
to/TO
about/RB
$/$
2.3/CD
billion/CD
in/IN
1993/CD
./.
A/DT
pivotal/JJ
test/NN
will/MD
come/VB
in/IN
the/DT
next/JJ
18/CD
months/NNS
,/,
according/VBG
to/TO
bankers/NNS
and/CC
money/NN
managers/NNS
familiar/JJ
with/IN
the/DT
buy-out/NN
./.
Some/DT
time/NN
before/IN
April/NNP
1991/CD
,/,
RJR/NNP
must/MD
fix/VB
the/DT
interest/NN
rates/NNS
on/IN
$/$
5.8/CD
billion/CD
worth/NN
of/IN
PIK/NNP
bonds/NNS
so/IN
the/DT
notes/NNS
trade/NN
at/IN
par/NN
,/,
in/IN
accordance/NN
with/IN
the/DT
bonds/NNS
'/POS
terms/NNS
./.
That/DT
means/VBZ
if/IN
the/DT
notes/NNS
continue/VBP
trading/VBG
below/IN
their/PRP$
$/$
100/CD
par/NN
value/NN
--/:
they/PRP
are/VBP
now/RB
trading/VBG
below/IN
$/$
80/CD
accrued/JJ
interest/NN
RJR/NNP
must/MD
boost/VB
the/DT
bonds/NNS
'/POS
interest/NN
rates/VBZ
as/RB
high/RB
as/IN
necessary/JJ
to/TO
drive/VB
their/PRP$
market/NN
price/NN
to/TO
$/$
100/CD
./.
That/DT
could/MD
require/VB
fixing/VBG
the/DT
interest/NN
rate/NN
as/RB
high/JJ
as/IN
20/CD
%/NN
,/,
bankers/NNS
say/VBP
,/,
especially/RB
if/IN
the/DT
junk-bond/NN
market/NN
remains/VBZ
weak/JJ
or/CC
deteriorates/VBZ
further/RB
./.
If/IN
RJR/NNP
does/VBZ
have/VB
to/TO
raise/VB
rates/NNS
significantly/RB
on/IN
the/DT
PIK/NNP
debt/NN
,/,
it/PRP
wo/MD
n't/RB
cost/VB
the/DT
company/NN
cash/NN
for/IN
several/JJ
years/NNS
./.
The/DT
bonds/NNS
will/MD
continue/VB
to/TO
accrue/VB
interest/NN
in/IN
paper/NN
until/IN
the/DT
mid-1990s/NNS
to/TO
late/JJ
1990s/NNS
./.
But/CC
it/PRP
could/MD
erode/VB
the/DT
deal/NN
's/POS
profitability/NN
./.
For/IN
example/NN
,/,
a/DT
large/JJ
,/,
accruing/VBG
debt/NN
to/TO
bondholders/NNS
would/MD
diminish/VB
RJR/NNP
's/POS
value/NN
in/IN
an/DT
initial/JJ
public/JJ
offering/NN
of/IN
stock/NN
./.
As/IN
the/DT
transaction/NN
was/VBD
originally/RB
structured/VBN
,/,
about/RB
one-third/NN
of/IN
the/DT
PIK/NNP
debt/NN
is/VBZ
due/JJ
to/TO
convert/VB
into/IN
a/DT
25/CD
%/NN
stake/NN
of/IN
RJR/NNP
equity/NN
in/IN
1993/CD
,/,
unless/IN
90/CD
%/NN
of/IN
the/DT
bond/NN
holders/NNS
decide/VBP
against/IN
conversion/NN
./.
The/DT
key/JJ
factor/NN
in/IN
the/DT
bond/NN
holders/NNS
'/POS
decision/NN
will/MD
undoubtedly/RB
be/VB
whether/IN
the/DT
PIK/NNP
notes/NNS
that/IN
they/PRP
are/VBP
holding/VBG
are/VBP
more/RBR
valuable/JJ
than/IN
a/DT
25/CD
%/NN
equity/NN
stake/NN
./.
And/CC
that/IN
,/,
of/IN
course/NN
,/,
will/MD
depend/VB
on/IN
just/RB
how/WRB
high/JJ
RJR/NNP
is/VBZ
forced/VBN
to/TO
fix/VB
the/DT
interest/NN
rate/NN
to/TO
get/VB
the/DT
bonds/NNS
trading/NN
up/RP
to/TO
par/NN
./.
Moreover/RB
,/,
the/DT
$/$
4/CD
billion/CD
of/IN
PIK/NNP
debt/NN
that/WDT
is/VBZ
n't/RB
convertible/JJ
into/IN
equity/NN
could/MD
be/VB
a/DT
big/JJ
drain/NN
on/IN
returns/NNS
if/IN
the/DT
bonds/NNS
'/POS
interest/NN
rates/NNS
have/VBP
to/TO
be/VB
fixed/VBN
higher/JJR
./.
``/``
The/DT
higher/JJR
the/DT
reset/NN
,/,
the/DT
greater/JJR
the/DT
share/NN
of/IN
the/DT
return/NN
on/IN
equity/NN
will/MD
accrue/VB
to/TO
bondholders/NNS
as/IN
opposed/VBN
to/TO
equity/NN
holders/NNS
,/,
''/''
said/VBD
Robert/NNP
Long/NNP
,/,
a/DT
bond/NN
analyst/NN
with/IN
First/NNP
Boston/NNP
Corp/NNP
./.
RJR/NNP
's/POS
executives/NNS
say/VBP
they/PRP
are/VBP
n't/RB
concerned/JJ
about/IN
the/DT
troubled/JJ
junk-bond/NN
market/NN
yet/RB
./.
``/``
We/PRP
certainly/RB
would/MD
n't/RB
want/VB
to/TO
reset/VB
those/DT
bonds/NNS
today/NN
,/,
''/''
said/VBD
Mr./NNP
von/NNP
der/NNP
Heyden/NNP
./.
``/``
If/IN
the/DT
markets/NNS
do/VBP
n't/RB
recover/VB
,/,
it/PRP
will/MD
be/VB
costly/JJ
./.
But/CC
we/PRP
have/VBP
until/IN
April/NNP
28/CD
,/,
1991/CD
,/,
to/TO
do/VB
it/PRP
./.
''/''
``/``
I/PRP
really/RB
do/VBP
n't/RB
worry/VB
about/IN
what/WP
happens/VBZ
in/IN
the/DT
bond/NN
market/NN
from/IN
day/NN
to/TO
day/NN
,/,
or/CC
even/RB
week/NN
to/TO
week/NN
,/,
''/''
added/VBD
Mr./NNP
Gerstner/NNP
,/,
RJR/NNP
's/POS
chairman/NN
./.
``/``
I/PRP
think/VBP
our/PRP$
paper/NN
has/VBZ
been/VBN
well/RB
received/VBN
./.
I/PRP
'm/VBP
not/RB
concerned/VBN
./.
''/''
Randall/NNP
Smith/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Fujitsu/NNP
Ltd./NNP
posted/VBD
a/DT
modest/JJ
6.7/CD
%/NN
gain/NN
in/IN
unconsolidated/JJ
pretax/JJ
profit/NN
in/IN
the/DT
first/JJ
half/NN
ended/VBN
Sept./NNP
30/CD
,/,
the/DT
company/NN
said/VBD
./.
Pretax/JJ
profit/NN
for/IN
the/DT
Tokyo/NNP
computer/NN
maker/NN
rose/VBD
to/TO
50.161/CD
trillion/CD
yen/NN
$/$
354.4/CD
million/CD
47.013/CD
trillion/CD
yen/NN
a/DT
year/NN
ago/RB
./.
Net/JJ
income/NN
rose/VBD
18/CD
%/NN
to/TO
28.461/CD
trillion/CD
yen/NN
,/,
or/CC
15.87/CD
yen/NN
a/DT
share/NN
,/,
from/IN
24.213/CD
trillion/CD
yen/NN
,/,
or/CC
13.81/CD
yen/NN
a/DT
share/NN
./.
The/DT
company/NN
said/VBD
falling/VBG
sales/NNS
in/IN
its/PRP$
communications/NNS
division/NN
hurt/VBP
results/NNS
./.
Sales/NNS
from/IN
the/DT
division/NN
slipped/VBD
7.5/CD
%/NN
to/TO
161.080/CD
trillion/CD
yen/NN
./.
A/DT
Fujitsu/NNP
spokesman/NN
said/VBD
the/DT
weaker/JJR
performance/NN
reflected/VBD
slipping/VBG
sales/NNS
to/TO
Nippon/NNP
Telegraph/NNP
&/CC
Telephone/NNP
Corp./NNP
,/,
Japan/NNP
's/POS
domestic/JJ
telephone/NN
monopoly/NN
./.
Total/JJ
sales/NNS
rose/VBD
4.7/CD
%/NN
to/TO
966.471/CD
trillion/CD
yen/NN
./.
Sales/NNS
of/IN
electrical/JJ
devices/NNS
rose/VBD
about/RB
19/CD
%/NN
to/TO
147.874/CD
trillion/CD
yen/NN
,/,
while/IN
sales/NNS
in/IN
the/DT
information/NN
systems/NNS
division/NN
gained/VBD
5.4/CD
%/NN
to/TO
657.517/CD
trillion/CD
yen/NN
./.
Enimont/NNP
S.p/NNP
./.
A./NNP
said/VBD
net/JJ
income/NN
totaled/VBD
525/CD
billion/CD
lire/NNS
$/$
390/CD
million/CD
the/DT
first/JJ
half/NN
of/IN
1989/CD
./.
The/DT
Italian/JJ
chemicals/NNS
company/NN
did/VBD
n't/RB
provide/VB
year-earlier/JJ
figures/NNS
because/IN
it/PRP
was/VBD
formed/VBN
on/IN
Jan./NNP
1/CD
as/IN
a/DT
joint/JJ
venture/NN
between/IN
Montedison/NNP
S.p/NNP
./.
A./NNP
and/CC
state-owned/JJ
Enichem/NNP
S.p/NNP
./.
A/NNP
./.
A/DT
joint/JJ
statement/NN
issued/VBN
by/IN
the/DT
two/CD
partners/NNS
said/VBD
Enimont/NNP
rang/VBD
up/RP
revenue/NN
of/IN
8.2/CD
trillion/CD
lire/NNS
$/$
6.09/CD
billion/CD
gross/JJ
operating/NN
profit/NN
amounted/VBD
to/TO
1.4/CD
trillion/CD
lire/NNS
in/IN
the/DT
opening/JJ
half/NN
of/IN
the/DT
year/NN
./.
The/DT
statement/NN
did/VBD
n't/RB
address/VB
the/DT
issue/NN
of/IN
a/DT
possible/JJ
change/NN
at/IN
the/DT
top/JJ
management/NN
as/IN
Chairman/NNP
Lorenzo/NNP
Necci/NNP
is/VBZ
expected/VBN
to/TO
be/VB
appointed/VBN
chairman/NN
of/IN
Ente/NNP
Nazionale/NNP
Idrocarburi/NNP
,/,
succeeding/VBG
Franco/NNP
Reviglio/NNP
whose/WP$
term/NN
expires/VBZ
in/IN
November/NNP
./.
ENI/NNP
,/,
the/DT
state/NN
energy/NN
concern/NN
,/,
is/VBZ
Enichem/NNP
's/POS
parent/NN
./.
According/VBG
to/TO
local/JJ
news/NN
reports/NNS
,/,
Gabriele/NNP
Cagliari/NNP
,/,
a/DT
member/NN
of/IN
ENI/NNP
's/POS
executive/JJ
council/NN
,/,
is/VBZ
a/DT
front/JJ
runner/NN
to/TO
take/VB
over/RP
Mr./NNP
Necci/NNP
's/POS
post/NN
at/IN
Enimont/NNP
./.
Imperial/NNP
Chemical/NNP
Industries/NNP
PLC/NNP
,/,
a/DT
major/JJ
British/JJ
chemicals/NNS
and/CC
pharmaceuticals/NNS
concern/NN
,/,
said/VBD
pretax/JJ
profit/NN
in/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
the/DT
year/NN
rose/VBD
9/CD
%/NN
on/IN
growth/NN
in/IN
pharmaceutical/JJ
sales/NNS
./.
Pretax/JJ
profit/NN
rose/VBD
to/TO
#/#
1.23/CD
billion/CD
$/$
1.99/CD
billion/CD
#/#
1.13/CD
billion/CD
in/IN
the/DT
year-earlier/JJ
period/NN
./.
The/DT
company/NN
's/POS
pretax/JJ
profit/NN
,/,
however/RB
,/,
was/VBD
hit/VBN
particularly/RB
hard/JJ
by/IN
soft/JJ
returns/NNS
in/IN
ICI/NNP
's/POS
petrochemical/NN
and/CC
plastics/NNS
operations/NNS
during/IN
the/DT
third/JJ
quarter/NN
./.
Third-quarter/JJ
pretax/JJ
profit/NN
dropped/VBD
12/CD
%/NN
to/TO
#/#
306/CD
million/CD
from/IN
#/#
347/CD
million/CD
in/IN
the/DT
1988/CD
period/NN
,/,
ICI/NNP
said/VBD
./.
The/DT
results/NNS
for/IN
the/DT
third/JJ
quarter/NN
and/CC
nine/CD
months/NNS
were/VBD
worse/JJR
than/IN
expected/VBN
./.
ICI/NNP
said/VBD
its/PRP$
nine-month/JJ
profit/NN
after/IN
tax/NN
,/,
or/CC
net/JJ
profit/NN
attributable/JJ
to/TO
shareholders/NNS
,/,
rose/VBD
18/CD
%/NN
to/TO
#/#
744/CD
million/CD
from/IN
#/#
632/CD
million/CD
in/IN
the/DT
year-earlier/JJ
period/NN
./.
Per-share/JJ
earnings/NNS
increased/VBD
9/CD
%/NN
to/TO
108.3/CD
pence/NNS
$/$
1.75/CD
99.7/CD
pence/NNS
./.
The/DT
New/NNP
York/NNP
Post/NNP
plans/VBZ
to/TO
close/VB
down/RP
its/PRP$
Sunday/NNP
edition/NN
after/IN
launching/VBG
it/PRP
just/RB
eight/CD
months/NNS
ago/RB
with/IN
much/JJ
fanfare/NN
./.
Peter/NNP
Kalikow/NNP
,/,
owner/NN
and/CC
publisher/NN
of/IN
the/DT
Post/NNP
,/,
announced/VBD
that/IN
he/PRP
would/MD
discontinue/VB
the/DT
edition/NN
,/,
which/WDT
he/PRP
initially/RB
started/VBD
in/IN
the/DT
hopes/NNS
of/IN
luring/VBG
upscale/JJ
readers/NNS
and/CC
retail/JJ
advertisers/NNS
that/WDT
shunned/VBD
the/DT
more/RBR
sensational/JJ
tabloid/NN
in/IN
favor/NN
of/IN
the/DT
New/NNP
York/NNP
Times/NNP
and/CC
the/DT
Daily/NNP
News/NNP
./.
Industry/NN
observers/NNS
and/CC
analysts/NNS
still/RB
are/VBP
unsure/JJ
whether/IN
folding/VBG
the/DT
Sunday/NNP
Post/NNP
will/MD
guarantee/VB
that/IN
the/DT
paper/NN
will/MD
survive/VB
./.
When/WRB
Rupert/NNP
Murdoch/NNP
sold/VBD
the/DT
paper/NN
to/TO
Mr./NNP
Kalikow/NNP
,/,
it/PRP
was/VBD
posting/VBG
losses/NNS
of/IN
$/$
10/CD
million/CD
a/DT
year/NN
by/IN
conservative/JJ
estimates/NNS
./.
In/IN
its/PRP$
first/JJ
10/CD
weeks/NNS
,/,
the/DT
Sunday/NNP
edition/NN
alone/RB
was/VBD
estimated/VBN
to/TO
have/VB
recorded/VBN
a/DT
deficit/NN
of/IN
as/RB
much/JJ
as/IN
$/$
7/CD
million/CD
./.
Mr./NNP
Kalikow/NNP
and/CC
Editor/NNP
Jerry/NNP
Nachman/NNP
assembled/VBD
employees/NNS
in/IN
the/DT
paper/NN
's/POS
newsroom/NN
in/IN
lower/JJR
Manhattan/NNP
yesterday/NN
afternoon/NN
to/TO
break/VB
the/DT
news/NN
,/,
which/WDT
had/VBD
been/VBN
rumored/VBN
in/IN
recent/JJ
weeks/NNS
./.
Post/NNP
executives/NNS
had/VBD
denied/VBN
earlier/JJR
reports/NNS
that/IN
the/DT
Sunday/NNP
edition/NN
was/VBD
closing/VBG
down/RP
./.
Mr./NNP
Kalikow/NNP
said/VBD
the/DT
death/NN
of/IN
the/DT
Sunday/NNP
paper/NN
is/VBZ
no/DT
indication/NN
that/IN
the/DT
Post/NNP
itself/PRP
is/VBZ
in/IN
danger/NN
of/IN
closing/VBG
down/RP
,/,
as/IN
some/DT
industry/NN
observers/NNS
have/VBP
speculated/VBN
./.
By/IN
closing/VBG
down/RP
the/DT
Sunday/NNP
Post/NNP
,/,
he/PRP
said/VBD
in/IN
a/DT
statement/NN
,/,
the/DT
Post/NNP
``/``
foresees/VBZ
a/DT
profitable/JJ
year/NN
in/IN
1990/CD
./.
''/''
The/DT
Post/NNP
's/POS
last/JJ
Sunday/NNP
edition/NN
will/MD
be/VB
Nov./NNP
26/CD
./.
Mr./NNP
Kalikow/NNP
blamed/VBD
the/DT
demise/NN
of/IN
the/DT
Sunday/NNP
Post/NNP
on/IN
the/DT
soft/JJ
ad/NN
market/NN
in/IN
the/DT
New/NNP
York/NNP
area/NN
and/CC
on/IN
low/JJ
circulation/NN
./.
``/``
The/DT
economics/NNS
just/RB
are/VBP
n't/RB
there/RB
,/,
''/''
he/PRP
said/VBD
./.
While/IN
there/EX
has/VBZ
been/VBN
a/DT
wave/NN
of/IN
new/JJ
Sunday/NNP
newspapers/NNS
launched/VBN
in/IN
small/JJ
to/TO
medium-sized/JJ
cities/NNS
in/IN
the/DT
last/JJ
decade/NN
,/,
the/DT
Post/NNP
was/VBD
by/IN
far/RB
the/DT
largest/JJS
newspaper/NN
to/TO
launch/VB
a/DT
Sunday/NNP
edition/NN
in/IN
years/NNS
./.
While/IN
Post/NNP
executives/NNS
had/VBD
expected/VBN
circulation/NN
would/MD
reach/VB
500,000/CD
,/,
Valerie/NNP
Salembier/NNP
,/,
president/NN
of/IN
the/DT
Post/NNP
,/,
said/VBD
the/DT
Sunday/NNP
circulation/NN
has/VBZ
reached/VBN
only/RB
about/RB
250,000/CD
./.
``/``
In/IN
any/DT
other/JJ
city/NN
,/,
250,000/CD
would/MD
be/VB
considered/VBN
great/JJ
,/,
but/CC
it/PRP
just/RB
was/VBD
n't/RB
enough/JJ
in/IN
New/NNP
York/NNP
,/,
''/''
said/VBD
Ms./NNP
Salembier/NNP
./.
Ms./NNP
Salembier/NNP
said/VBD
about/RB
30/CD
people/NNS
in/IN
circulation/NN
,/,
ad/NN
sales/NNS
and/CC
other/JJ
business/NN
departments/NNS
would/MD
lose/VB
their/PRP$
jobs/NNS
./.
``/``
What/WP
we/PRP
do/VBP
n't/RB
know/VB
about/IN
is/VBZ
the/DT
number/NN
of/IN
layoffs/NNS
on/IN
the/DT
editorial/JJ
side/NN
,/,
''/''
she/PRP
said/VBD
./.
``/``
The/DT
editorial/JJ
side/NN
is/VBZ
more/RBR
complicated/JJ
,/,
''/''
she/PRP
added/VBD
,/,
saying/VBG
that/IN
editorial/JJ
layoffs/NNS
will/MD
be/VB
announced/VBN
later/RB
./.
The/DT
paper/NN
has/VBZ
been/VBN
particularly/RB
hurt/VBN
by/IN
declines/NNS
in/IN
the/DT
level/NN
of/IN
real/JJ
estate/NN
and/CC
retail/NN
advertising/NN
,/,
and/CC
by/IN
the/DT
fact/NN
that/IN
the/DT
Sunday/NNP
paper/NN
could/MD
not/RB
attract/VB
any/DT
coupons/NNS
from/IN
national/JJ
companies/NNS
./.
In/IN
late/JJ
September/NNP
,/,
the/DT
paper/NN
announced/VBD
its/PRP$
was/VBD
canceling/VBG
its/PRP$
weekly/JJ
real/JJ
estate/NN
section/NN
./.
The/DT
section/NN
had/VBD
shrunk/VBN
from/IN
more/JJR
than/IN
20/CD
pages/NNS
to/TO
six/CD
pages/NNS
recently/RB
as/IN
a/DT
result/NN
of/IN
declines/NNS
in/IN
advertising/NN
./.
Months/NNS
earlier/RBR
,/,
Mr./NNP
Kalikow/NNP
had/VBD
already/RB
begun/VBN
to/TO
scale/VB
back/RP
the/DT
Sunday/NNP
Post/NNP
./.
In/IN
May/NNP
,/,
the/DT
Post/NNP
said/VBD
it/PRP
would/MD
scratch/VB
all/DT
supplements/NNS
in/IN
the/DT
Sunday/NNP
edition/NN
,/,
including/VBG
USA/NNP
Weekend/NNP
magazine/NN
,/,
and/CC
cut/VB
the/DT
$/$
1/CD
price/NN
to/TO
40/CD
cents/NNS
./.
Ms./NNP
Salembier/NNP
said/VBD
closing/VBG
the/DT
Sunday/NNP
paper/NN
was/VBD
a/DT
``/``
big/JJ
disappointment/NN
''/''
but/CC
the/DT
right/JJ
move/NN
./.
``/``
We/PRP
were/VBD
losing/VBG
a/DT
lot/NN
of/IN
money/NN
./.
While/IN
Peter/NNP
Kalikow/NN
deep/JJ
pockets/NNS
,/,
it/PRP
makes/VBZ
sense/NN
to/TO
put/VB
our/PRP$
resources/NNS
into/IN
our/PRP$
Monday/NNP
through/IN
Saturday/NNP
product/NN
,/,
''/''
she/PRP
said/VBD
./.
N.V/NNP
./.
Philips/NNP
said/VBD
third-quarter/JJ
net/JJ
profit/NN
surged/VBD
41/CD
%/NN
to/TO
227/CD
million/CD
guilders/NNS
$/$
109.4/CD
million/CD
84/CD
guilder/NN
cents/NNS
a/DT
share/NN
,/,
from/IN
161/CD
million/CD
guilders/NNS
,/,
or/CC
63/CD
cents/NNS
,/,
a/DT
year/NN
earlier/RBR
./.
Separately/NNP
,/,
the/DT
Dutch/JJ
electronics/NN
group/NN
announced/VBD
it/PRP
will/MD
spin/VB
off/RP
about/RB
20/CD
%/NN
of/IN
its/PRP$
PolyGram/NNP
BV/NNP
recording/NN
subsidiary/NN
in/IN
an/DT
international/JJ
stock/NN
offering/NN
./.
It/PRP
said/VBD
it/PRP
plans/VBZ
to/TO
file/VB
the/DT
share/NN
offer/NN
with/IN
the/DT
U.S./NNP
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
and/CC
Amsterdam/NNP
Stock/NNP
Exchange/NNP
``/``
within/IN
the/DT
next/JJ
few/JJ
weeks/NNS
./.
''/''
It/PRP
did/VBD
n't/RB
elaborate/VB
./.
The/DT
big/JJ
earnings/NNS
improvement/NN
reflected/VBD
extraordinary/JJ
gains/NNS
and/CC
the/DT
accounting/NN
impact/NN
of/IN
subsidiary/JJ
disposals/NNS
,/,
as/RB
well/RB
as/IN
restructuring/NN
charges/NNS
,/,
mixed/JJ
market/NN
factors/NNS
,/,
higher/JJR
taxes/NNS
and/CC
plunging/VBG
financing/NN
costs/NNS
and/CC
other/JJ
spending/NN
reductions/NNS
./.
The/DT
1989/CD
third-quarter/NN
's/POS
jump/NN
in/IN
net/JJ
profit/NN
was/VBD
aided/VBN
by/IN
a/DT
277/CD
million/CD
guilder/NN
,/,
or/CC
47.4/CD
%/NN
,/,
drop/NN
in/IN
net/JJ
financing/NN
charges/NNS
./.
Disappointments/NNS
in/IN
the/DT
quarter/NN
included/VBD
intense/JJ
competition/NN
causing/VBG
downward/JJ
price/NN
pressure/NN
that/WDT
led/VBD
to/TO
unspecified/JJ
operating/NN
losses/NNS
in/IN
two/CD
key/JJ
product/NN
lines/NNS
,/,
especially/RB
in/IN
the/DT
U.S/NNP
./.
As/IN
a/DT
result/NN
,/,
Philips/NNP
's/POS
pretax/JJ
operating/NN
profit/NN
before/IN
financing/NN
items/NNS
tumbled/VBD
15.7/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
to/TO
592/CD
million/CD
guilders/NNS
./.
Third-quarter/JJ
sales/NNS
world-wide/RB
were/VBD
unchanged/JJ
from/IN
a/DT
year/NN
ago/RB
at/IN
13.57/CD
billion/CD
guilders/NNS
./.
Bolar/NNP
Pharmaceutical/NNP
Co./NNP
,/,
under/IN
pressure/NN
from/IN
the/DT
Food/NNP
and/CC
Drug/NNP
Administration/NNP
,/,
agreed/VBD
to/TO
recall/VB
its/PRP$
generic/JJ
version/NN
of/IN
the/DT
antibiotic/JJ
drug/NN
Macrodantin/NNP
from/IN
retail/JJ
shelves/NNS
,/,
according/VBG
to/TO
FDA/NNP
officials/NNS
./.
It/PRP
was/VBD
another/DT
setback/NN
for/IN
Bolar/NNP
,/,
the/DT
flagship/NN
of/IN
the/DT
generic/JJ
drug/NN
industry/NN
./.
Earlier/RBR
this/DT
month/NN
,/,
Bolar/NNP
began/VBD
recalling/VBG
its/PRP$
nitrofurantoin/NN
macrocrystalline/NN
capsules/NNS
from/IN
wholesalers/NNS
and/CC
distributors/NNS
because/RB
of/IN
FDA/NNP
evidence/NN
suggesting/VBG
that/IN
the/DT
company/NN
passed/VBN
off/IN
Macrodantin/NNP
as/IN
its/PRP$
own/JJ
to/TO
obtain/VB
FDA/NNP
approval/NN
to/TO
market/VB
its/PRP$
generic/JJ
product/NN
./.
At/IN
that/DT
time/NN
,/,
however/RB
,/,
the/DT
company/NN
balked/VBD
at/IN
a/DT
retail/JJ
recall/NN
,/,
arguing/VBG
that/IN
the/DT
evidence/NN
was/VBD
n't/RB
sufficient/JJ
to/TO
justify/VB
such/PDT
a/DT
move/NN
./.
But/CC
on/IN
Oct./NNP
25/CD
,/,
the/DT
FDA/NNP
offered/VBD
additional/JJ
evidence/NN
to/TO
buttress/VB
its/PRP$
case/NN
that/IN
the/DT
brand-name/JJ
drug/NN
had/VBD
been/VBN
substituted/VBN
for/IN
Bolar/NNP
's/POS
product/NN
in/IN
pre-market/JJ
testing/NN
,/,
FDA/NNP
officials/NNS
said/VBD
yesterday/NN
./.
The/DT
agency/NN
now/RB
has/VBZ
evidence/NN
that/IN
Bolar/NNP
submitted/VBD
Macrodantin/NNP
as/IN
its/PRP$
generic/JJ
version/NN
for/IN
testing/VBG|NN
not/RB
only/RB
at/IN
PharmaKinetics/NNP
Laboratories/NNP
Inc./NNP
,/,
Baltimore/NNP
,/,
but/CC
also/RB
at/IN
an/DT
independent/JJ
laboratory/NN
in/IN
Canada/NNP
./.
FDA/NNP
investigators/NNS
obtained/VBD
a/DT
sample/NN
of/IN
the/DT
Bolar/NNP
drug/NN
from/IN
the/DT
Canadian/JJ
lab/NN
,/,
according/VBG
to/TO
FDA/NNP
official/NN
Michael/NNP
Shaffer/NNP
./.
``/``
It/PRP
turned/VBD
out/RP
to/TO
be/VB
the/DT
brand-name/JJ
product/NN
,/,
''/''
he/PRP
said/VBD
./.
In/IN
Copiague/NNP
,/,
N.Y./NNP
,/,
Robert/NNP
Shulman/NNP
,/,
president/NN
of/IN
Bolar/NNP
,/,
and/CC
sales/NNS
director/NN
Karen/NNP
Sattig/NNP
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
The/DT
inspector/NN
general/JJ
's/POS
office/NN
of/IN
the/DT
Health/NNP
and/CC
Human/NNP
Services/NNP
Department/NNP
already/RB
is/VBZ
conducting/VBG
a/DT
criminal/JJ
investigation/NN
of/IN
whether/IN
Bolar/NNP
filed/VBD
``/``
false/JJ
information/NN
''/''
with/IN
the/DT
FDA/NNP
in/IN
seeking/VBG
clearance/NN
to/TO
market/NN
at/IN
least/JJS
two/CD
generic/JJ
drugs/NNS
./.
Meanwhile/RB
,/,
the/DT
FDA/NNP
is/VBZ
moving/VBG
to/TO
withdraw/VB
its/PRP$
approval/NN
of/IN
Bolar/NNP
's/POS
nitrofurantoin/NN
macrocrystalline/NN
capsules/NNS
,/,
which/WDT
are/VBP
used/VBN
primarily/RB
to/TO
treat/VB
urinary-tract/NN
infections/NNS
./.
The/DT
brand-name/JJ
drug/NN
is/VBZ
manufactured/VBN
by/IN
Norwich/NNP
Eaton/NNP
,/,
a/DT
subsidiary/NN
of/IN
Cincinnati-based/JJ
Procter/NNP
&/CC
Gamble/NNP
Co/NNP
./.
Although/IN
no/DT
health/NN
problems/NNS
are/VBP
known/VBN
to/TO
have/VB
been/VBN
caused/VBN
by/IN
Bolar/NNP
's/POS
product/NN
,/,
the/DT
FDA/NNP
officials/NNS
said/VBD
the/DT
agency/NN
can/MD
no/RB
longer/RBR
ensure/VB
that/IN
it/PRP
is/VBZ
the/DT
equivalent/NN
of/IN
Macrodantin/NNP
./.
In/IN
American/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
Bolar/NNP
closed/VBD
at/IN
$/$
14.375/CD
,/,
down/RB
50/CD
cents/NNS
./.
Ford/NNP
Motor/NNP
Co./NNP
Ltd./NNP
,/,
the/DT
U.K./NNP
unit/NN
of/IN
Ford/NNP
Motor/NNP
Co./NNP
,/,
said/VBD
it/PRP
offered/VBD
its/PRP$
hourly/JJ
workers/NNS
a/DT
15/CD
%/NN
raise/NN
in/IN
wages/NNS
over/IN
two/CD
years/NNS
as/IN
a/DT
first/JJ
offer/NN
in/IN
contract/NN
talks/NNS
./.
A/DT
Ford/NNP
spokesman/NN
said/VBD
33,000/CD
manual/JJ
workers/NNS
at/IN
the/DT
company/NN
's/POS
21/CD
plants/NNS
in/IN
the/DT
U.K./NNP
have/VB
been/VBN
offered/VBN
8/CD
%/NN
in/IN
the/DT
first/JJ
year/NN
and/CC
7/CD
%/NN
in/IN
the/DT
second/JJ
year/NN
./.
But/CC
Charlie/NNP
Whelan/NNP
,/,
an/DT
official/NN
of/IN
the/DT
Amalgamated/NNP
Engineering/NNP
Union/NNP
,/,
said/VBD
the/DT
offer/NN
was/VBD
rejected/VBN
by/IN
union/NN
leaders/NNS
as/IN
``/``
totally/RB
unacceptable/JJ
./.
''/''
The/DT
Ford/NNP
wage/NN
settlement/NN
will/MD
be/VB
watched/VBN
closely/RB
as/IN
a/DT
barometer/NN
of/IN
wage/NN
inflation/NN
in/IN
the/DT
U.K/NNP
./.
The/DT
annual/JJ
underlying/JJ
average/JJ
increase/NN
in/IN
wages/NNS
is/VBZ
currently/RB
running/VBG
at/IN
about/RB
8.75/CD
%/NN
,/,
and/CC
overall/JJ
inflation/NN
at/IN
about/RB
7.6/CD
%/NN
./.
Prime/NNP
Minister/NNP
Margaret/NNP
Thatcher/NNP
urged/VBD
companies/NNS
not/RB
to/TO
give/VB
in/RP
to/TO
demands/NNS
that/WDT
would/MD
aggravate/VB
inflation/NN
./.
Union/NN
leaders/NNS
earlier/RBR
this/DT
month/NN
lodged/VBD
a/DT
claim/NN
for/IN
a/DT
``/``
significant/JJ
''/''
raise/NN
,/,
aimed/VBN
at/IN
bringing/VBG
Ford/NNP
's/POS
hourly/JJ
wages/NNS
in/IN
line/NN
with/IN
the/DT
motor/NN
company/NN
's/POS
European/JJ
plants/NNS
./.
The/DT
unions/NNS
have/VBP
n't/RB
made/VBN
a/DT
counter-demand/NN
to/TO
Ford/NNP
./.
They/PRP
recently/RB
rejected/VBD
Vauxhall/NNP
Motors/NNP
Ltd./NNP
's/POS
offer/NN
of/IN
a/DT
9.1/CD
%/NN
raise/NN
,/,
made/VBN
as/IN
part/NN
of/IN
a/DT
two-year/JJ
package/NN
./.
Two/CD
exchanges/NNS
'/POS
new/JJ
stock/NN
``/``
basket/NN
''/''
products/NNS
got/VBD
off/IN
to/TO
a/DT
slow/JJ
start/NN
yesterday/NN
./.
The/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
's/POS
Exchange/NNP
Stock/NNP
Portfolio/NNP
,/,
which/WDT
allows/VBZ
investors/NNS
to/TO
trade/VB
all/DT
500/CD
stocks/NNS
in/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
index/NN
in/IN
a/DT
single/JJ
transaction/NN
,/,
received/VBD
permanent/JJ
regulatory/JJ
approval/NN
Wednesday/NNP
./.
However/RB
,/,
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
will/MD
review/VB
three/CD
rules/NNS
regarding/VBG
Big/NNP
Board/NNP
's/POS
basket/NN
trading/NN
over/IN
the/DT
next/JJ
six/CD
months/NNS
./.
The/DT
SEC/NNP
also/RB
approved/VBD
the/DT
Chicago/NNP
Board/NNP
Options/NNP
Exchange/NNP
's/POS
basket/NN
product/NN
./.
Both/DT
exchanges/NNS
will/MD
compete/VB
for/IN
institutional/JJ
business/NN
in/IN
the/DT
months/NNS
ahead/RB
,/,
and/CC
one/CD
probably/RB
will/MD
emerge/VB
as/IN
the/DT
dominant/JJ
market/NN
for/IN
stock/NN
baskets/NNS
./.
Only/RB
nine/CD
ESP/NNP
contracts/NNS
traded/VBD
on/IN
the/DT
Big/NNP
Board/NNP
--/:
equivalent/JJ
to/TO
about/RB
one/CD
million/CD
shares/NNS
of/IN
stock/NN
,/,
with/IN
a/DT
value/NN
of/IN
about/RB
$/$
45/CD
million/CD
./.
``/``
It/PRP
was/VBD
a/DT
slow/JJ
start/NN
,/,
but/CC
we/PRP
expected/VBD
it/PRP
would/MD
be/VB
,/,
''/''
said/VBD
Big/NNP
Board/NNP
President/NNP
Richard/NNP
Grasso/NNP
./.
``/``
We/PRP
were/VBD
generally/RB
pleased/JJ
with/IN
the/DT
way/NN
the/DT
systems/NNS
acted/VBD
./.
''/''
At/IN
the/DT
CBOE/NNP
,/,
14/CD
baskets/NNS
traded/VBD
--/:
the/DT
equivalent/NN
of/IN
about/RB
500,000/CD
shares/NNS
with/IN
a/DT
value/NN
of/IN
about/RB
$/$
24/CD
million/CD
./.
The/DT
CBOE/NNP
's/POS
basket/NN
requires/VBZ
a/DT
minimum/NN
of/IN
$/$
1.7/CD
million/CD
a/DT
trade/NN
,/,
compared/VBN
with/IN
a/DT
$/$
5/CD
million/CD
minimum/NN
for/IN
the/DT
Big/NNP
Board/NNP
basket/NN
./.
David/NNP
Hall/NNP
,/,
vice/NN
president/NN
at/IN
the/DT
CBOE/NNP
,/,
said/VBD
five/CD
to/TO
six/CD
firms/NNS
traded/VBD
the/DT
stock/NN
basket/NN
product/NN
,/,
located/VBN
on/IN
the/DT
floor/NN
of/IN
the/DT
CBOE/NNP
near/IN
the/DT
S*/NNP&P/NN
500-stock/JJ
index/NN
options/NNS
pit/NN
./.
Bond/NN
investors/NNS
sat/VBD
on/IN
the/DT
sidelines/NNS
yesterday/NN
,/,
paying/VBG
little/JJ
attention/NN
to/TO
falling/VBG
stock/NN
prices/NNS
and/CC
the/DT
government/NN
's/POS
latest/JJS
gross/JJ
national/JJ
product/NN
report/NN
./.
``/``
This/DT
was/VBD
a/DT
bit/NN
surprising/JJ
,/,
''/''
said/VBD
John/NNP
Lonski/NNP
,/,
an/DT
economist/NN
at/IN
Moody/NNP
's/POS
Investors/NNP
Service/NNP
Inc/NNP
./.
He/PRP
said/VBD
that/IN
in/IN
recent/JJ
weeks/NNS
,/,
such/JJ
news/NN
has/VBZ
often/RB
set/VBN
a/DT
positive/JJ
tone/NN
for/IN
the/DT
bond/NN
market/NN
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
fell/VBD
39.55/CD
points/NNS
to/TO
close/VB
at/IN
2613.73/CD
./.
Meanwhile/RB
,/,
the/DT
government/NN
reported/VBD
that/IN
third-quarter/JJ
real/JJ
gross/JJ
national/JJ
product/NN
,/,
the/DT
inflation-adjusted/JJ
value/NN
of/IN
the/DT
nation/NN
's/POS
goods/NNS
and/CC
services/NNS
,/,
rose/VBD
at/IN
an/DT
annual/JJ
rate/NN
of/IN
2.5/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
./.
Although/IN
the/DT
rate/NN
of/IN
growth/NN
was/VBD
unchanged/JJ
from/IN
the/DT
second/JJ
quarter/NN
,/,
economists/NNS
said/VBD
the/DT
new/JJ
GNP/NN
report/NN
had/VBD
an/DT
ominous/JJ
tone/NN
./.
Among/IN
other/JJ
things/NNS
,/,
the/DT
report/NN
showed/VBD
a/DT
sharp/JJ
deterioration/NN
in/IN
export/NN
trade/NN
,/,
which/WDT
had/VBD
been/VBN
a/DT
major/JJ
source/NN
of/IN
strength/NN
for/IN
the/DT
economy/NN
./.
Bond/NN
investors/NNS
did/VBD
n't/RB
show/VB
much/JJ
reaction/NN
to/TO
the/DT
news/NN
./.
As/IN
a/DT
result/NN
,/,
the/DT
benchmark/JJ
30-year/JJ
Treasury/NNP
bond/NN
,/,
which/WDT
meandered/VBD
for/IN
most/JJS
of/IN
the/DT
day/NN
,/,
ended/VBD
little/RB
changed/JJ
./.
Mortgage-backed/JJ
securities/NNS
moved/VBD
slightly/RB
higher/RBR
,/,
and/CC
investment-grade/JJ
corporate/JJ
bonds/NNS
ended/VBD
unchanged/JJ
./.
In/IN
the/DT
junk/NN
bond/NN
market/NN
,/,
most/JJS
prices/NNS
were/VBD
unchanged/JJ
to/TO
slightly/RB
lower/JJR
./.
But/CC
there/EX
was/VBD
one/CD
notable/JJ
exception/NN
./.
The/DT
junk/NN
bonds/NNS
of/IN
RJR/NNP
Nabisco/NNP
,/,
which/WDT
have/VBP
been/VBN
whipsawed/VBN
in/IN
recent/JJ
months/NNS
for/IN
a/DT
variety/NN
of/IN
reasons/NNS
,/,
fell/VBD
sharply/RB
yesterday/NN
on/IN
rumors/NNS
of/IN
possible/JJ
problems/NNS
with/IN
RJR/NNP
's/POS
pending/VBG|JJ
$/$
1.48/CD
billion/CD
sale/NN
of/IN
its/PRP$
Del/NNP
Monte/NNP
canned/JJ
foods/NNS
unit/NN
to/TO
a/DT
group/NN
led/VBN
by/IN
Merrill/NNP
Lynch/NNP
&/CC
Co/NNP
./.
However/RB
,/,
late/RB
yesterday/NN
,/,
a/DT
spokesman/NN
for/IN
Merrill/NNP
Lynch/NNP
said/VBD
the/DT
planned/JJ
sale/NN
is/VBZ
on/IN
track/NN
./.
Proceeds/NNS
from/IN
the/DT
Del/NNP
Monte/NNP
sale/NN
would/MD
account/VB
for/IN
a/DT
portion/NN
of/IN
the/DT
$/$
5/CD
billion/CD
worth/NN
of/IN
bank/NN
debt/NN
RJR/NNP
had/VBD
planned/VBN
to/TO
repay/VB
by/IN
Feb./NNP
9/CD
./.
RJR/NNP
bonds/NNS
closed/VBD
one/CD
to/TO
two/CD
points/NNS
lower/JJR
,/,
or/CC
off/RB
between/IN
$/$
10/CD
to/TO
$/$
20/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
./.
RJR/NNP
's/POS
13/CD
1\/2/CD
%/NN
subordinated/JJ
debentures/NNS
maturing/VBG
in/IN
2001/CD
were/VBD
off/RB
1\/2/CD
at/IN
101/CD
,/,
while/IN
its/PRP$
14.7/CD
%/NN
convertible/JJ
pay-in-kind/JJ
securities/NNS
finished/VBD
the/DT
day/NN
down/RB
1/CD
7\/8/CD
at/IN
86/CD
./.
In/IN
the/DT
municipal/JJ
market/NN
,/,
institutional/JJ
selling/NN
drove/VBD
prices/NNS
sharply/RB
lower/RBR
./.
The/DT
municipal/JJ
market/NN
has/VBZ
been/VBN
struggling/VBG
for/IN
weeks/NNS
to/TO
absorb/VB
large/JJ
customer/NN
``/``
bid-wanted/JJ
''/''
lists/NNS
,/,
or/CC
sell/JJ
orders/NNS
./.
But/CC
dealers/NNS
said/VBD
inventories/NNS
now/RB
are/VBP
full/JJ
and/CC
bids/VBZ
for/IN
bonds/NNS
are/VBP
getting/VBG
soft/JJ
./.
Among/IN
others/NNS
,/,
a/DT
bid-wanted/JJ
list/NN
totaling/VBG
about/RB
$/$
109/CD
million/CD
circulated/VBD
yesterday/NN
./.
It/PRP
followed/VBD
a/DT
$/$
223/CD
million/CD
sell/JJ
list/NN
handled/VBN
by/IN
Chemical/NNP
Securities/NNP
Inc./NNP
Wednesday/NNP
and/CC
at/IN
least/JJS
three/CD
other/JJ
lists/NNS
in/IN
that/DT
size/NN
range/NN
within/IN
the/DT
past/JJ
two/CD
weeks/NNS
./.
Traders/NNS
said/VBD
the/DT
bonds/NNS
appear/VBP
to/TO
be/VB
coming/VBG
from/IN
a/DT
range/NN
of/IN
investors/NNS
,/,
with/IN
commercial/JJ
banks/NNS
among/IN
the/DT
leading/JJ
sellers/NNS
./.
Tax/NN
law/NN
changes/NNS
that/WDT
go/VBP
into/IN
effect/NN
later/RB
this/DT
year/NN
make/VBP
municipal/JJ
holdings/NNS
less/RBR
attractive/JJ
to/TO
certain/JJ
investors/NNS
./.
Municipal/JJ
market/NN
participants/NNS
also/RB
remain/VB
concerned/JJ
that/DT
property/NN
and/CC
casualty/NN
insurers/NNS
may/MD
be/VB
forced/VBN
to/TO
lighten/VB
their/PRP$
tax-exempt/JJ
holdings/NNS
as/IN
a/DT
result/NN
of/IN
claims/NNS
stemming/VBG
from/IN
Hurricane/NNP
Hugo/NNP
and/CC
the/DT
Northern/NNP
California/NNP
earthquake/NN
./.
Treasury/NNP
,/,
Agency/NN
Securities/NNS
The/DT
Treasury/NNP
market/NN
could/MD
get/VB
an/DT
unexpected/JJ
$/$
17/CD
billion/CD
of/IN
new/JJ
supply/NN
next/IN
week/NN
./.
Late/RB
yesterday/NN
,/,
a/DT
Treasury/NNP
official/NN
said/VBD
the/DT
department/NN
may/MD
take/VB
the/DT
unprecedented/JJ
step/NN
of/IN
borrowing/VBG
$/$
17/CD
billion/CD
to/TO
avoid/VB
default/NN
on/IN
certain/JJ
obligations/NNS
unless/IN
Congress/NNP
assures/VBZ
by/IN
1/CD
p.m./NN
EDT/NNP
today/NN
that/IN
it/PRP
will/MD
raise/VB
the/DT
debt/NN
limit/NN
,/,
according/VBG
to/TO
Dow/NNP
Jones/NNP
Capital/NNP
Markets/NNP
Report/NNP
./.
If/IN
assurance/NN
is/VBZ
n't/RB
given/VBN
,/,
the/DT
official/NN
said/VBD
the/DT
Treasury/NNP
might/MD
raise/VB
the/DT
money/NN
by/IN
adding/VBG
to/TO
the/DT
weekly/JJ
Treasury/NNP
bill/NN
issue/NN
or/CC
through/IN
a/DT
cash-management/JJ
bill/NN
issue/NN
./.
The/DT
official/NN
said/VBD
Treasury/NNP
Secretary/NNP
Nicholas/NNP
Brady/NNP
indicated/VBD
the/DT
possible/JJ
move/NN
in/IN
a/DT
letter/NN
dated/VBN
yesterday/NN
to/TO
House/NNP
Minority/NNP
Leader/NNP
Robert/NNP
Michel/NNP
R./NNP
,/,
Ill/NNP
./.
Separately/RB
,/,
the/DT
$/$
4.52/CD
billion/CD
of/IN
Resolution/NNP
Funding/NNP
Corp./NNP
bonds/NNS
sold/VBN
Wednesday/NNP
were/VBD
quoted/VBN
late/RB
yesterday/NN
at/IN
99/CD
19\/32/CD
,/,
down/RB
1\/8/CD
from/IN
the/DT
auction/NN
average/NN
./.
Much/JJ
of/IN
the/DT
Refcorp/NNP
issue/NN
was/VBD
purchased/VBN
by/IN
four/CD
large/JJ
securities/NNS
firms/NNS
that/WDT
had/VBD
planned/VBN
to/TO
repackage/VB
the/DT
bonds/NNS
./.
But/CC
yesterday/NN
,/,
some/DT
dealers/NNS
said/VBD
the/DT
repackaged/VBN
bonds/NNS
were/VBD
selling/VBG
slowly/RB
./.
The/DT
benchmark/JJ
30-year/JJ
bond/NN
ended/VBD
at/IN
about/RB
102/CD
21\/32/CD
,/,
compared/VBN
with/IN
102/CD
22\/32/CD
Wednesday/NNP
./.
The/DT
yield/NN
was/VBD
unchanged/JJ
at/IN
7.88/CD
%/NN
./.
The/DT
10-year/JJ
notes/NNS
ended/VBD
at/IN
about/RB
100/CD
23\/32/CD
,/,
compared/VBN
with/IN
100/CD
24\/32/CD
./.
The/DT
yield/NN
was/VBD
unchanged/JJ
at/IN
7.87/CD
%/NN
./.
Mortgage/NN
Asset-Backed/JJ
Securities/NNS
Mortgage/NNP
securities/NNS
were/VBD
1\/32/CD
to/TO
4\/32/CD
point/NN
higher/JJR
,/,
with/IN
Government/NNP
National/NNP
Mortgage/NNP
Association/NNP
10/CD
1\/2/CD
%/NN
securities/NNS
the/DT
top-performing/JJ
issue/NN
./.
Dealers/NNS
said/VBD
the/DT
10/CD
1\/2/CD
%/NN
securities/NNS
rose/VBD
in/IN
response/NN
to/TO
a/DT
$/$
500/CD
million/CD
purchase/NN
by/IN
a/DT
bank/NN
for/IN
its/PRP$
mortgage/NN
portfolio/NN
./.
The/DT
dealers/NNS
noted/VBD
that/IN
the/DT
securities/NNS
,/,
which/WDT
gained/VBD
4\/32/CD
to/TO
104/CD
1\/32/CD
,/,
have/VBP
been/VBN
relatively/RB
weak/JJ
recently/RB
because/IN
high-coupon/JJ
securities/NNS
are/VBP
n't/RB
favored/VBN
in/IN
rising/VBG
markets/NNS
./.
Thus/RB
,/,
the/DT
issue/NN
has/VBZ
quite/PDT
a/DT
high/JJ
yield/NN
./.
Ginnie/NNP
Mae/NNP
9/CD
%/NN
securities/NNS
were/VBD
at/IN
98/CD
5\/8/CD
late/RB
yesterday/NN
,/,
up/RB
2\/32/CD
,/,
and/CC
Federal/NNP
Home/NNP
Loan/NNP
Mortgage/NNP
Corp./NNP
9/CD
%/NN
securities/NNS
were/VBD
at/IN
97/CD
3\/4/CD
,/,
up/RB
1\/32/CD
./.
The/DT
yield/NN
spread/NN
of/IN
the/DT
Ginnie/NNP
Mae/NNP
9/CD
%/NN
issue/NN
over/IN
the/DT
10-year/JJ
Treasury/NNP
note/NN
narrowed/VBD
0.01/CD
percentage/NN
point/NN
to/TO
1.45/CD
./.
In/IN
derivative/JJ
markets/NNS
,/,
the/DT
Federal/NNP
National/NNP
Mortgage/NNP
Association/NNP
issued/VBD
a/DT
$/$
500/CD
million/CD
real/JJ
estate/NN
mortgage/NN
investment/NN
conduit/NN
backed/VBN
by/IN
its/PRP$
9/CD
%/NN
securities/NNS
through/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc/NNP
./.
In/IN
other/JJ
matters/NNS
,/,
Maryland/NNP
National/NNP
Bank/NNP
,/,
a/DT
unit/NN
of/IN
Baltimore-based/JJ
MNC/NNP
Financial/NNP
Inc./NNP
,/,
became/VBD
the/DT
first/JJ
commercial/JJ
bank/NN
to/TO
issue/NN
securities/NNS
backed/VBN
by/IN
home-equity/JJ
lines/NNS
of/IN
credit/NN
./.
The/DT
$/$
267/CD
million/CD
transaction/NN
was/VBD
underwritten/VBN
by/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
./.
Foreign/JJ
Bonds/NNS
British/JJ
government/NN
bonds/NNS
rose/VBD
for/IN
the/DT
fourth/JJ
consecutive/JJ
day/NN
,/,
buoyed/VBN
by/IN
a/DT
firm/JJ
pound/NN
and/CC
further/JJ
weakness/NN
in/IN
British/JJ
stocks/NNS
./.
But/CC
later/RB
,/,
after/IN
trading/NN
had/VBD
basically/RB
ended/VBN
,/,
the/DT
pound/NN
declined/VBD
sharply/RB
on/IN
the/DT
unexpected/JJ
resignation/NN
of/IN
Nigel/NNP
Lawson/NNP
,/,
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
./.
The/DT
Treasury/NNP
11/CD
3\/4/CD
%/NN
bond/NN
due/JJ
2003\/2007/CD
rose/VBD
10\/32/CD
to/TO
112/CD
30\/32/CD
to/TO
yield/VB
9.95/CD
%/NN
,/,
while/IN
the/DT
12/CD
%/NN
notes/NNS
due/JJ
1995/CD
were/VBD
up/RB
3\/32/CD
at/IN
104/CD
11\/32/CD
to/TO
yield/VB
10.86/CD
%/NN
./.
Japanese/JJ
government/NN
bonds/NNS
ended/VBD
lower/JJR
after/IN
quiet/JJ
trading/NN
,/,
pulled/VBN
down/RB
in/IN
part/NN
by/IN
the/DT
sale/NN
of/IN
500/CD
billion/CD
yen/NN
$/$
3.53/CD
billion/CD
new/JJ
one-year/JJ
bonds/NNS
./.
They/PRP
were/VBD
priced/VBN
at/IN
99.58/CD
to/TO
yield/VB
5.163/CD
%/NN
with/IN
a/DT
coupon/NN
rate/NN
of/IN
5.1/CD
%/NN
./.
The/DT
rate/NN
compares/VBZ
with/IN
a/DT
4.9/CD
%/NN
coupon/NN
at/IN
the/DT
previous/JJ
auction/NN
in/IN
August/NNP
./.
In/IN
response/NN
to/TO
the/DT
auction/NN
,/,
Japan/NNP
's/POS
No./NN
111/CD
4.6/CD
%/NN
bond/NN
due/JJ
1998/CD
ended/VBD
on/IN
brokers/NNS
'/POS
screens/NNS
at/IN
95.33/CD
,/,
down/RB
0.20/CD
,/,
to/TO
yield/VB
5.39/CD
%/NN
./.
West/JJ
German/JJ
bonds/NNS
ended/VBD
lower/JJR
in/IN
quiet/JJ
trading/NN
./.
Bonn/NNP
's/POS
7/CD
%/NN
bonds/NNS
due/JJ
October/NNP
1999/CD
fell/VBD
0.10/CD
to/TO
99.95/CD
to/TO
yield/VB
7.01/CD
%/NN
./.
Municipals/NNS
Details/NNP
of/IN
New/NNP
York/NNP
City/NNP
's/POS
forthcoming/JJ
bond/NN
offering/NN
were/VBD
released/VBN
yesterday/NN
./.
As/IN
described/VBN
in/IN
the/DT
preliminary/JJ
official/JJ
statement/NN
,/,
the/DT
city/NN
will/MD
offer/VB
$/$
729/CD
million/CD
of/IN
tax-exempt/JJ
bonds/NNS
tentatively/RB
structured/VBN
as/IN
serial/JJ
bonds/NNS
maturing/VBG
in/IN
1989/CD
to/TO
2008/CD
./.
The/DT
city/NN
also/RB
plans/VBZ
to/TO
sell/VB
$/$
57.8/CD
million/CD
of/IN
taxable/JJ
municipal/JJ
bonds/NNS
at/IN
the/DT
same/JJ
time/NN
,/,
possibly/RB
maturing/VBG
in/IN
1994/CD
,/,
2004/CD
,/,
2009/CD
and/CC
2010/CD
./.
The/DT
bulk/NN
of/IN
the/DT
taxable/JJ
bonds/NNS
are/VBP
in/IN
the/DT
two/CD
longest/JJS
maturities/NNS
,/,
which/WDT
are/VBP
tentatively/RB
to/TO
total/VB
$/$
26.9/CD
million/CD
each/DT
./.
In/IN
the/DT
secondary/JJ
market/NN
,/,
New/NNP
York/NNP
City/NNP
7/CD
%/NN
bonds/NNS
due/JJ
2014/CD
were/VBD
offered/VBN
priced/VBN
to/TO
yield/VB
7.70/CD
%/NN
,/,
while/IN
7/CD
1\/2/CD
%/NN
bonds/NNS
due/JJ
2007/CD
were/VBD
offered/VBN
at/IN
98/CD
to/TO
yield/VB
7.71/CD
%/NN
./.
Among/IN
active/JJ
issues/NNS
,/,
New/NNP
Jersey/NNP
Turnpike/NNP
Authority/NNP
7.20/CD
%/NN
bonds/NNS
due/JJ
2018/CD
were/VBD
off/RB
1\/4/CD
point/NN
at/IN
98/CD
1\/4/CD
bid/NN
to/TO
yield/VB
7.35/CD
%/NN
./.
Corporate/JJ
Issues/NNS
Most/JJS
corporate/JJ
bonds/NNS
were/VBD
unchanged/JJ
to/TO
slightly/RB
lower/JJR
./.
New-issue/JJ
volume/NN
dropped/VBD
off/RP
sharply/RB
from/IN
Wednesday/NNP
./.
Among/IN
the/DT
issuers/NNS
that/WDT
tapped/VBD
the/DT
debt/NN
market/NN
yesterday/NN
was/VBD
Tenneco/NNP
Credit/NNP
Corp/NNP
./.
The/DT
subsidiary/NN
of/IN
Tenneco/NNP
Inc./NNP
offered/VBD
$/$
150/CD
million/CD
of/IN
seven-year/JJ
senior/JJ
notes/NNS
priced/VBN
to/TO
yield/VB
9.324/CD
%/NN
./.
The/DT
issue/NN
was/VBD
sold/VBN
through/IN
underwriters/NNS
led/VBN
by/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
./.
A/DT
New/NNP
York/NNP
bankruptcy/NN
judge/NN
has/VBZ
temporarily/RB
stopped/VBN
the/DT
Resolution/NNP
Trust/NNP
Corp./NNP
from/IN
placing/VBG
an/DT
insolvent/JJ
thrift/NN
institution/NN
under/IN
government/NN
control/NN
./.
Deltacorp/NN
,/,
the/DT
holding/NN
company/NN
that/WDT
owns/VBZ
the/DT
thrift/NN
,/,
contends/VBZ
that/IN
the/DT
federal/JJ
law/NN
empowering/VBG
the/DT
RTC/NNP
to/TO
place/VB
failing/VBG
savings/NNS
and/CC
loan/NN
associations/NNS
under/IN
government/NN
control/NN
conflicts/NNS
with/IN
the/DT
federal/JJ
bankruptcy/NN
law/NN
,/,
Chapter/NNP
Deltacorp/NNP
has/VBZ
a/DT
bankruptcy/NN
petition/NN
pending/VBG|JJ
in/IN
New/NNP
York/NNP
./.
The/DT
company/NN
is/VBZ
scheduled/VBN
to/TO
appear/VB
before/IN
federal/JJ
bankruptcy/NN
Judge/NNP
Tina/NNP
L./NNP
Brozman/NNP
Thursday/NNP
to/TO
ask/VB
her/PRP
to/TO
impose/VB
a/DT
60-day/JJ
preliminary/JJ
injunction/NN
on/IN
the/DT
Office/NNP
of/IN
Thrift/NNP
Supervision/NNP
,/,
the/DT
enforcement/NN
arm/NN
of/IN
the/DT
RTC/NNP
./.
Deltacorp/NNP
hopes/VBZ
within/IN
60/CD
days/NNS
it/PRP
will/MD
be/VB
able/JJ
to/TO
sell/VB
the/DT
thrift/NN
,/,
says/VBZ
its/PRP$
lawyer/NN
David/NNP
M./NNP
Friedman/NNP
,/,
a/DT
partner/NN
with/IN
Gordon/NNP
Hurwitz/NNP
Butowsky/NNP
Weitzen/NNP
Shalov/NNP
&/CC
Wein/NNP
in/IN
New/NNP
York/NNP
./.
If/IN
Deltacorp/NNP
prevails/VBZ
,/,
similarly/RB
situated/VBN
companies/NNS
will/MD
be/VB
able/JJ
to/TO
use/VB
Chapter/NNP
11/CD
to/TO
thwart/VB
President/NNP
Bush/NNP
's/POS
program/NN
to/TO
restructure/VB
the/DT
trouble/JJ
S&L/NN
industry/NN
./.
Under/IN
Chapter/NNP
11/CD
,/,
a/DT
company/NN
operates/VBZ
under/IN
protection/NN
from/IN
creditors/NNS
'/POS
lawsuits/NNS
while/IN
it/PRP
works/VBZ
out/RP
a/DT
plan/NN
to/TO
pay/VB
its/PRP$
debts/NNS
./.
Passed/VBN
early/RB
this/DT
year/NN
,/,
the/DT
Financial/NNP
Institutions/NNP
Reform/NNP
,/,
Recovery/NNP
,/,
and/CC
Enforcement/NNP
Act/NNP
authorizes/VBZ
the/DT
RTC/NNP
to/TO
declare/VB
troubled/JJ
thrift/NN
institutions/NNS
insolvent/JJ
and/CC
place/VB
them/PRP
in/IN
receivership/NN
./.
The/DT
RTC/NNP
can/MD
then/RB
close/VB
the/DT
thrift/NN
institution/NN
and/CC
sell/VB
it/PRP
whole/JJ
or/CC
in/IN
parts/NNS
./.
Established/VBN
three/CD
months/NNS
ago/RB
,/,
the/DT
RTC/NNP
has/VBZ
taken/VBN
over/RP
256/CD
thrifts/NNS
valued/VBN
at/IN
$/$
95.6/CD
billion/CD
./.
The/DT
RTC/NNP
was/VBD
on/IN
the/DT
verge/NN
of/IN
placing/VBG
Colonial/NNP
Savings/NNP
Bank/NNP
of/IN
Roselle/NNP
,/,
N.J./NNP
,/,
a/DT
subsidiary/NN
of/IN
Deltacorp/NNP
,/,
into/IN
receivership/NN
./.
This/DT
week/NN
Deltacorp/NNP
persuaded/VBD
Judge/NNP
Brozman/NNP
to/TO
issue/VB
a/DT
temporary/JJ
restraining/JJ
order/NN
,/,
arguing/VBG
that/IN
before/IN
its/PRP$
thrift/NN
was/VBD
taken/VBN
over/RP
the/DT
apparent/JJ
conflict/NN
between/IN
the/DT
two/CD
federal/JJ
laws/NNS
should/MD
be/VB
resolved/VBN
./.
According/VBG
to/TO
Mr./NNP
Friedman/NNP
,/,
the/DT
RTC/NNP
's/POS
pending/VBG|JJ
takeover/NN
would/MD
impair/VB
the/DT
company/NN
's/POS
ability/NN
under/IN
Chapter/NNP
11/CD
to/TO
recoup/VB
loses/NNS
by/IN
putting/VBG
its/PRP$
subsidiary/NN
up/RP
for/IN
bid/NN
./.
Mr./NNP
Friedman/NNP
claims/VBZ
Deltacorp/NN
estimates/NNS
that/IN
by/IN
selling/VBG
the/DT
thrift/NN
it/PRP
could/MD
make/VB
about/RB
$/$
23/CD
million/CD
./.
If/IN
the/DT
government/NN
sells/VBZ
the/DT
thrift/NN
,/,
the/DT
company/NN
will/MD
make/VB
far/RB
less/JJR
,/,
he/PRP
contends/VBZ
./.
``/``
If/IN
the/DT
court/NN
were/VBD
to/TO
issue/VB
the/DT
injunction/NN
,/,
it/PRP
would/MD
set/VB
a/DT
significant/JJ
precedent/NN
,/,
''/''
says/VBZ
Mr./NNP
Friedman/NNP
,/,
who/WP
says/VBZ
he/PRP
does/VBZ
n't/RB
know/VB
how/WRB
many/JJ
other/JJ
companies/NNS
are/VBP
in/IN
a/DT
position/NN
to/TO
use/VB
the/DT
bankruptcy/NN
law/NN
as/IN
a/DT
shelter/NN
against/IN
RTC/NNP
takeovers/NNS
./.
Jerome/NNP
Kowalski/NNP
,/,
a/DT
partner/NN
with/IN
Parker/NNP
Chapin/NNP
Flattau/NNP
&/CC
Klimpl/NNP
who/WP
has/VBZ
clients/NNS
in/IN
situations/NNS
similar/JJ
to/TO
Deltacorp/NNP
,/,
says/VBZ
lawyers/NNS
would/MD
be/VB
``/``
foolish/JJ
not/RB
to/TO
tell/VB
clients/NNS
to/TO
follow/VB
''/''
the/DT
Deltacorp/NNP
strategy/NN
./.
The/DT
Office/NNP
of/IN
Thrift/NNP
Supervision/NNP
failed/VBD
to/TO
return/VB
numerous/JJ
phone/NN
calls/NNS
./.
REAGAN/NNP
TOOK/NNP
more/RBR
than/IN
10/CD
months/NNS
on/IN
average/NN
to/TO
nominate/VB
federal/JJ
judges/NNS
./.
That/DT
's/VBZ
the/DT
conclusion/NN
of/IN
a/DT
study/NN
by/IN
Daniel/NNP
Meador/NNP
,/,
a/DT
law/NN
professor/NN
at/IN
the/DT
University/NNP
of/IN
Virginia/NNP
./.
Mr./NNP
Meador/NNP
,/,
a/DT
former/JJ
assistant/JJ
attorney/NN
general/JJ
,/,
criticizes/VBZ
what/WP
he/PRP
calls/VBZ
``/``
inordinate/JJ
delays/NNS
''/''
in/IN
filling/VBG
federal/JJ
judgeships/NNS
and/CC
suggests/VBZ
the/DT
creation/NN
of/IN
a/DT
permanent/JJ
office/NN
on/IN
judicial/JJ
nominations/NNS
within/IN
the/DT
Justice/NNP
Department/NNP
./.
Federal/JJ
judges/NNS
in/IN
Washington/NNP
,/,
D.C./NNP
,/,
and/CC
other/JJ
areas/NNS
complained/VBD
recently/RB
that/IN
long-standing/JJ
vacancies/NNS
have/VBP
contributed/VBN
to/TO
mounting/VBG
backlogs/NNS
of/IN
cases/NNS
./.
Forty-five/CD
federal/JJ
judgeships/NNS
are/VBP
vacant/JJ
nationwide/RB
./.
Mr./NNP
Meador/NNP
,/,
whose/WP$
study/NN
appears/VBZ
in/IN
the/DT
fall/NN
issue/NN
of/IN
the/DT
University/NNP
of/IN
Virginia/NNP
's/POS
Journal/NNP
of/IN
Law/NNP
&/CC
Politics/NNP
,/,
writes/VBZ
that/IN
``/``
it/PRP
is/VBZ
not/RB
rare/JJ
for/IN
two/CD
or/CC
more/JJR
years/NNS
to/TO
pass/VB
before/IN
the/DT
administration/NN
sends/VBZ
a/DT
nomination/NN
to/TO
the/DT
Senate/NNP
./.
''/''
His/PRP$
study/NN
covers/VBZ
the/DT
years/NNS
1979/CD
to/TO
1988/CD
./.
Under/IN
Attorney/NNP
General/NNP
Dick/NNP
Thornburgh/NNP
,/,
a/DT
committee/NN
of/IN
ten/CD
senior/JJ
Justice/NNP
Department/NNP
officials/NNS
evaluate/VBP
potential/JJ
judicial/JJ
nominees/NNS
and/CC
send/VBP
recommendations/NNS
to/TO
the/DT
White/NNP
House/NNP
./.
Congressional/JJ
Democrats/NNPS
have/VBP
accused/VBN
Mr./NNP
Thornburgh/NNP
of/IN
delaying/VBG
the/DT
nomination/NN
process/NN
./.
But/CC
a/DT
spokesman/NN
for/IN
the/DT
the/DT
attorney/NN
general/JJ
said/VBD
the/DT
Senate/NNP
Judiciary/NNP
Committee/NNP
contributed/VBD
to/TO
the/DT
problem/NN
by/IN
failing/VBG
to/TO
act/VB
on/IN
nominations/NNS
made/VBN
during/IN
the/DT
final/JJ
months/NNS
of/IN
the/DT
Reagan/NNP
administration/NN
./.
U.S./NNP
DISTRICT/JJ
JUDGE/NN
upholds/VBZ
New/NNP
York/NNP
's/POS
``/``
Son/NNP
of/IN
Sam/NNP
''/''
law/NN
./.
The/DT
state/NN
law/NN
,/,
designed/VBN
to/TO
prevent/VB
lawbreakers/NNS
from/IN
profitting/VBG
from/IN
such/JJ
things/NNS
as/IN
books/NNS
and/CC
movies/NNS
about/IN
their/PRP$
crimes/NNS
,/,
survived/VBD
its/PRP$
first/JJ
federal/JJ
challenge/NN
in/IN
a/DT
ruling/NN
by/IN
Judge/NNP
John/NNP
F./NNP
Keenan/NNP
in/IN
federal/JJ
court/NN
in/IN
New/NNP
York/NNP
./.
Simon/NNP
&/CC
Schuster/NNP
Inc./NNP
sued/VBD
to/TO
have/VB
the/DT
law/NN
declared/VBD
unconstitutional/JJ
,/,
claiming/VBG
it/PRP
restricts/VBZ
publishers/NNS
'/POS
freedom/NN
of/IN
speech/NN
./.
The/DT
company/NN
filed/VBD
the/DT
suit/NN
in/IN
1986/CD
after/IN
the/DT
``/``
Son/NNP
of/IN
Sam/NNP
''/''
law/NN
was/VBD
applied/VBN
to/TO
``/``
Wiseguy/NNP
:/:
Life/NN
in/IN
a/DT
Mafia/NNP
Family/NN
,/,
''/''
a/DT
best-seller/NN
by/IN
Nicholas/NNP
Pileggi/NNP
./.
The/DT
book/NN
was/VBD
based/VBN
on/IN
the/DT
life/NN
of/IN
Henry/NNP
Hill/NNP
,/,
whom/WP
the/DT
court/NN
refers/VBZ
to/TO
as/IN
a/DT
``/``
career/NN
criminal/NN
''/''
and/CC
who/WP
received/VBD
payments/NNS
from/IN
the/DT
publisher/NN
in/IN
return/NN
for/IN
his/PRP$
life/NN
story/NN
./.
Simon/NNP
&/CC
Schuster/NNP
said/VBD
many/JJ
books/NNS
about/IN
criminal/JJ
activities/NNS
would/MD
never/RB
be/VB
published/VBN
if/IN
criminals/NNS
could/MD
n't/RB
be/VB
paid/VBN
for/IN
their/PRP$
stories/NNS
,/,
and/CC
that/IN
this/DT
had/VBD
a/DT
chilling/JJ
effect/NN
on/IN
the/DT
publishing/NN
industry/NN
./.
But/CC
Judge/NNP
Keenan/NNP
said/VBD
,/,
``/``
Although/IN
it/PRP
may/MD
be/VB
more/RBR
difficult/JJ
for/IN
publishers/NNS
and/CC
authors/NNS
to/TO
create/VB
books/NNS
with/IN
the/DT
cooperation/NN
of/IN
a/DT
criminal/JJ
source/NN
the/DT
``/``
Son/NNP
of/IN
Sam/NNP
''/''
law/NN
it/PRP
is/VBZ
not/RB
impossible/JJ
nor/CC
is/VBZ
such/JJ
cooperation/NN
proscribed/VBN
./.
''/''
The/DT
judge/NN
added/VBD
,/,
``/``
The/DT
speech/NN
itself/PRP
is/VBZ
not/RB
the/DT
target/NN
of/IN
{/(
the/DT
state/NN
law/NN
the/DT
profit-making/JJ
aspect/NN
is/VBZ
the/DT
target/NN
./.
''/''
A/DT
spokeswoman/NN
for/IN
Simon/NNP
&/CC
Schuster/NNP
said/VBD
the/DT
New/NNP
York/NNP
company/NN
would/MD
appeal/VB
the/DT
ruling/NN
./.
BAKER/NNP
&/CC
McKENZIE/NNP
Moscow/NNP
bound/JJ
./.
The/DT
Chicago/NNP
law/NN
firm/NN
,/,
the/DT
world/NN
's/POS
largest/JJS
,/,
will/MD
open/VB
the/DT
first/JJ
Soviet-accredited/JJ
office/NN
of/IN
a/DT
foreign/JJ
law/NN
firm/NN
in/IN
Moscow/NNP
later/RB
this/DT
year/NN
./.
Coudert/NNP
Brothers/NNP
,/,
a/DT
New/NNP
York/NNP
law/NN
firm/NN
,/,
and/CC
Arnold/NNP
&/CC
Porter/NNP
and/CC
Heron/NNP
,/,
Burchette/NNP
,/,
Ruckert/NNP
&/CC
Rothwell/NNP
,/,
both/DT
in/IN
Washington/NNP
,/,
D.C./NNP
,/,
have/VBP
had/VBD
lawyers/NNS
in/IN
the/DT
Soviet/NNP
Union/NNP
under/IN
the/DT
auspices/NNS
of/IN
companies/NNS
'/POS
trade/NN
offices/NNS
or/CC
in/IN
unofficial/JJ
capacities/NNS
./.
But/CC
1,400-lawyer/JJ
Baker/NNP
&/CC
McKenzie/NNP
will/MD
open/VB
a/DT
full-fledged/JJ
branch/NN
./.
The/DT
firm/NN
will/MD
have/VB
46/CD
offices/NNS
in/IN
27/CD
countries/NNS
./.
It/PRP
became/VBD
the/DT
first/JJ
foreign/JJ
firm/NN
with/IN
an/DT
Eastern/JJ
European/JJ
branch/NN
when/WRB
it/PRP
opened/VBD
in/IN
Budapest/NNP
two/CD
years/NNS
ago/RB
./.
Three/CD
lawyers/NNS
,/,
headed/VBN
by/IN
partner/NN
Paul/NNP
J./NNP
Melling/NNP
,/,
will/MD
be/VB
in/IN
Moscow/NNP
full-time/RB
./.
Ten/CD
lawyers/NNS
from/IN
the/DT
firm/NN
's/POS
other/JJ
offices/NNS
will/MD
work/VB
with/IN
them/PRP
./.
Fifteen/CD
joint/JJ
ventures/NNS
have/VBP
already/RB
signed/VBN
on/RP
as/IN
clients/NNS
,/,
according/VBG
to/TO
Robert/NNP
W./NNP
Cox/NNP
,/,
chairman/NN
of/IN
the/DT
firm/NN
./.
ILLINOIS/NNP
JUDGE/NN
joins/VBZ
firm/NN
./.
After/IN
nine/CD
years/NNS
in/IN
the/DT
state/NN
judiciary/NN
,/,
William/NNP
R./NNP
Quinlan/NNP
,/,
49/CD
years/NNS
old/JJ
,/,
has/VBZ
joined/VBN
the/DT
Chicago/NNP
law/NN
firm/NN
of/IN
Phelan/NNP
,/,
Pope/NNP
&/CC
John/NNP
as/IN
a/DT
partner/NN
./.
He/PRP
will/MD
specialize/VB
in/IN
complex/JJ
commercial/JJ
and/CC
environmental/JJ
litigation/NN
at/IN
the/DT
75-lawyer/JJ
firm/NN
./.
In/IN
a/DT
Oct./NNP
23/CD
resignation/NN
letter/NN
to/TO
Illinois/NNP
Gov./NNP
James/NNP
R./NNP
Thompson/NNP
,/,
Mr./NNP
Quinlan/NNP
said/VBD
he/PRP
could/MD
no/RB
longer/RBR
sit/VB
on/IN
the/DT
bench/NN
and/CC
fulfill/VB
financial/JJ
responsibilities/NNS
to/TO
his/PRP$
family/NN
./.
He/PRP
said/VBD
that/IN
while/IN
education/NN
costs/NNS
and/CC
living/NN
expenses/NNS
spiralled/VBD
,/,
judicial/JJ
salaries/NNS
in/IN
Illinois/NNP
have/VBP
n't/RB
increased/VBN
for/IN
four/CD
years/NNS
./.
Mr./NNP
Quinlan/NNP
was/VBD
appointed/VBN
to/TO
the/DT
Illinois/NNP
Appellate/NNP
Court/NNP
in/IN
1985/CD
./.
He/PRP
served/VBD
as/IN
a/DT
Circuit/NNP
Court/NNP
judge/NN
in/IN
Cook/NNP
County/NNP
,/,
Ill./NNP
,/,
and/CC
corporation/NN
counsel/NN
for/IN
the/DT
city/NN
of/IN
Chicago/NNP
./.
``/``
The/DT
judiciary/NN
is/VBZ
called/VBN
upon/IN
to/TO
decide/VB
the/DT
most/RBS
important/JJ
issues/NNS
facing/VBG
our/PRP$
society/NN
./.
But/CC
we/PRP
're/VBP
not/RB
spending/VBG
the/DT
money/NN
to/TO
staff/VB
it/PRP
with/IN
the/DT
best/JJS
people/NNS
we/PRP
can/MD
get/VB
or/CC
keeping/VBG
the/DT
best/JJS
people/NNS
there/RB
,/,
''/''
says/VBZ
Mr./NNP
Quinlan/NNP
./.
DISNEY/NNP
SUES/VBZ
Amvest/NNP
for/IN
copyright/NN
infringement/NN
./.
Noting/VBG
that/IN
the/DT
Happy/NNP
Hampster/NNP
is/VBZ
n't/RB
one/CD
of/IN
its/PRP$
creations/NNS
,/,
Walt/NNP
Disney/NNP
Co./NNP
filed/VBD
a/DT
$/$
17/CD
million/CD
suit/NN
in/IN
federal/JJ
court/NN
against/IN
Amvest/NNP
Video/NNP
Corp./NNP
,/,
of/IN
Rahway/NNP
,/,
N.J/NNP
./.
Disney/NNP
alleges/VBZ
Amvest/NNP
violated/VBD
its/PRP$
copyrights/NNS
at/IN
least/JJS
170/CD
times/NNS
in/IN
at/IN
least/JJS
23/CD
video/JJ
cassettes/NNS
,/,
some/DT
of/IN
them/PRP
full-length/JJ
Disney/NNP
movies/NNS
such/JJ
as/IN
Bambi/NNP
and/CC
Fantasia/NNP
./.
The/DT
suit/NN
also/RB
alleges/VBZ
Amvest/NNP
created/VBD
a/DT
character/NN
called/VBD
the/DT
Happy/NNP
Hampster/NNP
which/WDT
it/PRP
is/VBZ
trying/VBG
to/TO
pass/VB
off/RP
as/IN
a/DT
Disney/NNP
character/NN
./.
In/IN
addition/NN
to/TO
the/DT
$/$
17/CD
million/CD
in/IN
damages/NNS
--/:
$/$
100,000/CD
for/IN
each/DT
copyright/NN
infringement/NN
--/:
Disney/NNP
is/VBZ
seeking/VBG
unspecified/JJ
punitive/JJ
damages/NNS
./.
A/DT
spokeswoman/NN
for/IN
Amvest/NNP
had/VBD
no/DT
comment/NN
and/CC
said/VBD
the/DT
company/NN
had/VBD
n't/RB
yet/RB
seen/VBN
the/DT
suit/NN
./.
CONFRONTATIONS/NNS
LOOM/VBZ
between/IN
Bush/NNP
and/CC
Democrats/NNPS
in/IN
Congress/NNP
./.
The/DT
early/JJ
bipartisanship/NN
dissipates/VBZ
as/IN
issues/NNS
become/VBP
more/RBR
contentious/JJ
and/CC
the/DT
Democrats/NNPS
find/VBP
their/PRP$
voice/NN
./.
They/PRP
begin/VBP
to/TO
blame/VB
Bush/NNP
's/POS
insistence/NN
on/IN
a/DT
capital-gains/NNS
cut/NN
for/IN
the/DT
disarray/NN
in/IN
the/DT
budget/NN
process/NN
;/:
one/CD
White/NNP
House/NNP
aide/NN
sees/VBZ
a/DT
``/``
train/NN
wreck/NN
''/''
coming/VBG
./.
The/DT
Democrats/NNPS
also/RB
increasingly/RB
lash/VBP
Bush/NNP
for/IN
timidity/NN
on/IN
Eastern/NNP
Europe/NNP
./.
White/NNP
House/NNP
advisers/NNS
formally/RB
threaten/VBP
vetoes/NNS
of/IN
the/DT
foreign-aid/NN
and/CC
child-care/NN
bills/NNS
and/CC
informally/RB
discuss/VBP
a/DT
possible/JJ
veto/NN
of/IN
the/DT
defense/NN
bill/NN
./.
Child/NN
care/NN
could/MD
be/VB
an/DT
especially/RB
tough/JJ
fight/NN
;/:
after/IN
Bush/NNP
's/POS
veto/NN
of/IN
abortion/NN
funding/NN
for/IN
rape/NN
and/CC
incest/NN
victims/NNS
,/,
anti-abortion/JJ
lawmakers/NNS
feel/VBP
extra/JJ
pressure/NN
to/TO
show/VB
attention/NN
to/TO
women/NNS
's/POS
concerns/NNS
./.
Bush/NNP
still/RB
tries/VBZ
a/DT
personal/JJ
touch/NN
;/:
he/PRP
golfs/NNS
with/IN
Ways/NNP
and/CC
Means/NNP
Chairman/NNP
Rostenkowski/NNP
and/CC
meets/VBZ
privately/RB
with/IN
Senate/NNP
Democrats/NNPS
./.
A/DT
``/``
MUST-SIGN/JJ
''/''
BILL/NN
becomes/VBZ
a/DT
magnet/NN
for/IN
controversial/JJ
proposals/NNS
./.
To/TO
avoid/VB
missing/VBG
Social/NNP
Security/NNP
payments/NNS
,/,
the/DT
government/NN
must/MD
get/VB
a/DT
raise/NN
in/IN
its/PRP$
borrowing/NN
limit/NN
by/IN
Nov./NNP
8/CD
;/:
the/DT
necessity/NN
of/IN
the/DT
measure/NN
attracts/VBZ
numerous/JJ
attempts/NNS
at/IN
adding/VBG
unrelated/JJ
measures/NNS
to/TO
it/PRP
./.
Republicans/NNPS
will/MD
try/VB
to/TO
offer/VB
the/DT
capital-gains/NNS
cut/NN
in/IN
the/DT
Senate/NNP
;/:
the/DT
Democrats/NNPS
probably/RB
have/VBP
the/DT
votes/NNS
to/TO
block/VB
it/PRP
,/,
though/IN
some/DT
fear/NN
brinksmanship/NN
on/IN
the/DT
bill/NN
./.
Other/JJ
likely/JJ
candidates/NNS
for/IN
riders/NNS
include/VBP
revision/NN
of/IN
the/DT
Gramm-Rudman/NNP
law/NN
,/,
repeal/NN
of/IN
catastrophic-illness/NN
insurance/NN
,/,
child/NN
care/NN
and/CC
other/JJ
measures/NNS
that/WDT
were/VBD
stripped/VBN
off/RP
the/DT
recent/JJ
budget-reconciliation/JJ
bill/NN
./.
Democratic/JJ
leaders/NNS
will/MD
try/VB
to/TO
keep/VB
them/PRP
off/RB
,/,
fearing/VBG
that/IN
allowing/VBG
any/DT
of/IN
them/PRP
would/MD
weaken/VB
their/PRP$
argument/NN
against/IN
capital/NN
gains/NNS
./.
BUSH/NNP
TURNS/VBZ
the/DT
failed/JJ
Panama/NNP
coup/NN
to/TO
his/PRP$
advantage/NN
,/,
at/IN
least/JJS
for/IN
now/RB
./.
His/PRP$
complaints/NNS
about/IN
secret/JJ
restrictions/NNS
on/IN
anti-Noriega/JJ
plots/NNS
put/VBD
Congress/NNP
on/IN
the/DT
defensive/NN
,/,
even/RB
though/IN
the/DT
curbs/NNS
did/VBD
n't/RB
play/VB
a/DT
role/NN
in/IN
the/DT
coup/NN
's/POS
collapse/NN
./.
Senate/NNP
intelligence/NN
chiefs/NNS
Boren/NNP
and/CC
Cohen/NNP
agree/VBP
with/IN
the/DT
White/NNP
House/NNP
to/TO
loosen/VB
the/DT
rules/NNS
;/:
CIA/NNP
agents/NNS
stand/VBP
to/TO
gain/VB
broad/JJ
leeway/NN
to/TO
work/VB
with/IN
rebels/NNS
,/,
even/RB
if/IN
a/DT
coup/NN
might/MD
endanger/VB
Noriega/NNP
's/POS
life/NN
./.
The/DT
next/JJ
step/NN
:/:
a/DT
new/JJ
covert/JJ
plan/NN
for/IN
unseating/VBG
the/DT
dictator/NN
./.
One/CD
possibility/NN
is/VBZ
more/RBR
active/JJ
American/JJ
recruitment/NN
of/IN
rebels/NNS
who/WP
would/MD
agree/VB
to/TO
hand/NN
Noriega/NNP
to/TO
the/DT
U.S./NNP
and/CC
install/VB
the/DT
elected/VBN
leaders/NNS
he/PRP
rebuffed/VBD
./.
The/DT
last/JJ
coup/NN
plotters/NNS
refused/VBD
to/TO
do/VB
either/DT
./.
But/CC
Bush/NNP
's/POS
handling/NN
of/IN
the/DT
previous/JJ
attempt/NN
hobbles/VBZ
future/JJ
efforts/NNS
./.
Noriega/NNP
has/VBZ
purged/VBN
potential/JJ
enemies/NNS
,/,
and/CC
doubts/NNS
grow/VBP
about/IN
U.S./NNP
resolve/NN
./.
LAWMAKERS/NNS
'/POS
PATIENCE/NN
wears/VBZ
thin/JJ
over/IN
the/DT
CFTC/NNP
's/POS
slow/JJ
pace/NN
of/IN
reform/NN
after/IN
the/DT
``/``
sting/NN
''/''
operation/NN
that/WDT
led/VBD
to/TO
the/DT
spring/NN
indictments/NNS
of/IN
46/CD
traders/NNS
at/IN
two/CD
Chicago/NNP
exchanges/NNS
./.
Incredulous/JJ
senators/NNS
grill/VBP
Chairman/NNP
Wendy/NNP
Gramm/NNP
about/IN
the/DT
fact/NN
that/IN
11/CD
of/IN
the/DT
traders/NNS
are/VBP
still/RB
handling/VBG
customer/NN
accounts/NNS
./.
Nebraska/NNP
Sen./NNP
Kerrey/NNP
asks/VBZ
her/PRP
:/:
``/``
Do/VBP
you/PRP
work/VB
full-time/RB
at/IN
this/DT
job/NN
?/.
''/''
THE/DT
PENTAGON/NNP
BALKS/VBZ
at/IN
Darman/NNP
's/POS
budget/NN
strategy/NN
of/IN
threatening/VBG
to/TO
make/VB
the/DT
automatic/JJ
Gramm-Rudman/NNP
cuts/NNS
permanent/JJ
./.
Pentagon/NNP
brass/NN
worry/VBP
it/PRP
could/MD
mean/VB
sharp/JJ
cutbacks/NNS
in/IN
training/NN
,/,
acquisition/NN
of/IN
spare/JJ
parts/NNS
and/CC
weapons/NNS
development/NN
./.
``/``
The/DT
impact/NN
for/IN
us/PRP
could/MD
be/VB
appreciably/RB
worse/JJR
than/IN
OMB/NNP
has/VBZ
admitted/VBN
in/IN
its/PRP$
maneuvering/NN
with/IN
Congress/NNP
,/,
''/''
says/VBZ
a/DT
Pentagon/NNP
budget/NN
aide/NN
./.
NEW/JJ
ALLY/NN
:/:
Attorney/NNP
General/NNP
Thornburgh/NNP
,/,
back/RB
from/IN
the/DT
U.S.S.R./NNP
,/,
reports/VBZ
that/IN
the/DT
Soviets/NNPS
are/VBP
now/RB
providing/VBG
assistance/NN
and/CC
intelligence/NN
to/TO
the/DT
U.S./NNP
on/IN
international/JJ
drug/NN
trafficking/NN
./.
In/IN
exchange/NN
,/,
the/DT
U.S./NNP
Drug/NNP
Enforcement/NNP
Administration/NNP
is/VBZ
training/VBG
several/JJ
Soviet/JJ
agents/NNS
in/IN
drug/NN
enforcement/NN
./.
ORGAN-TRANSPLANT/JJ
DOCTORS/NNS
worry/VBP
at/IN
HHS/NNP
moves/VBZ
to/TO
assert/VB
control/NN
over/IN
the/DT
transplant/NN
system/NN
,/,
currently/RB
overseen/VBN
by/IN
a/DT
nonprofit/JJ
group/NN
under/IN
federal/JJ
contract/NN
./.
The/DT
department/NN
decides/VBZ
to/TO
impose/VB
a/DT
10-step/JJ
review/NN
on/IN
new/JJ
transplant/NN
policies/NNS
./.
Dr./NNP
Robert/NNP
Corry/NNP
,/,
who/WP
heads/VBZ
the/DT
nonprofit/JJ
group/NN
,/,
says/VBZ
the/DT
move/NN
will/MD
``/``
stifle/VB
innovative/JJ
changes/NNS
''/''
and/CC
slow/VB
medical/JJ
progress/NN
;/:
he/PRP
hopes/VBZ
to/TO
negotiate/VB
a/DT
compromise/NN
./.
ABORTION/NN
POLITICS/NNS
shape/VBP
legal/JJ
as/IN
well/RB
as/IN
electoral/JJ
agendas/NNS
./.
Illinois/NNP
Attorney/NNP
General/NNP
Neil/NNP
Hartigan/NNP
,/,
whose/WP$
gubernatorial/JJ
campaign/NN
is/VBZ
under/IN
pressure/NN
from/IN
pro-choice/JJ
forces/NNS
,/,
pursues/VBZ
a/DT
settlement/NN
of/IN
the/DT
current/JJ
Supreme/NNP
Court/NNP
case/NN
challenging/VBG
the/DT
state/NN
's/POS
tough/JJ
restrictions/NNS
on/IN
abortion/NN
clinics/NNS
./.
Agreement/NN
would/MD
sharply/RB
reduce/VB
the/DT
stakes/NNS
in/IN
the/DT
court/NN
this/DT
term/NN
;/:
the/DT
two/CD
remaining/VBG
cases/NNS
do/VBP
n't/RB
as/RB
directly/RB
challenge/VB
Roe/NNP
vs./IN
Wade/NNP
./.
Pennsylvania/NNP
's/POS
new/JJ
abortion/NN
law/NN
almost/RB
certainly/RB
will/MD
provide/VB
a/DT
Supreme/NNP
Court/NNP
test/NN
,/,
but/CC
probably/RB
not/RB
until/IN
next/JJ
year/NN
./.
Abortion-rights/NNS
activists/NNS
plan/VBP
a/DT
new/JJ
series/NN
of/IN
major/JJ
marches/NNS
next/IN
month/NN
,/,
but/CC
their/PRP$
biggest/JJS
boost/NN
would/MD
come/VB
with/IN
a/DT
gubernatorial/JJ
victory/NN
in/IN
Virginia/NNP
,/,
where/WRB
black/JJ
nominee/NN
Wilder/NNP
is/VBZ
riding/VBG
the/DT
pro-choice/JJ
issue/NN
hard/RB
./.
The/DT
National/NNP
Abortion/NNP
Rights/NNP
Action/NNP
League/NNP
,/,
already/RB
running/VBG
ads/NNS
for/IN
Wilder/NNP
,/,
hits/VBZ
the/DT
airwaves/NNS
today/NN
for/IN
New/NNP
Jersey/NNP
Democratic/JJ
candidate/NN
Florio/NNP
./.
MINOR/JJ
MEMOS/NNS
:/:
Among/IN
documents/NNS
in/IN
the/DT
HUD/NNP
scandal/NN
:/:
a/DT
handwritten/JJ
1987/CD
letter/NN
from/IN
presidential/JJ
son/NN
Jeb/NNP
Bush/NNP
to/TO
Deborah/NNP
Dean/NNP
,/,
a/DT
central/JJ
figure/NN
in/IN
the/DT
scandal/NN
,/,
wishing/VBG
her/PRP
``/``
every/DT
success/NN
in/IN
trying/VBG
to/TO
clean/VB
up/RP
the/DT
federal/JJ
government/NN
's/POS
act/NN
./.
''/''
.../:
GOP/NNP
Rep./NNP
Bentley/NNP
writes/VBZ
business/NN
PACs/NNS
promising/JJ
to/TO
``/``
lead/VB
the/DT
battle/NN
''/''
against/IN
President/NNP
Bush/NNP
's/POS
proposal/NN
to/TO
abolish/VB
them/PRP
--/:
and/CC
asking/VBG
for/IN
money/NN
for/IN
her/PRP$
1990/CD
campaign/NN
.../:
./.
Sen./NNP
Mitchell/NNP
's/POS
advice/NN
to/TO
visiting/VBG
Supreme/NNP
Soviet/NNP
members/NNS
drawing/VBG
up/RP
rules/NNS
for/IN
their/PRP$
legislature/NN
:/:
``/``
Do/VB
n't/RB
copy/VB
ours/PRP
./.
''/''
An/DT
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
Co./NNP
unit/NN
,/,
AT&T/NNP
Nassau/NNP
Metals/NNP
Corp./NNP
,/,
said/VBD
it/PRP
was/VBD
soliciting/VBG
bids/NNS
for/IN
its/PRP$
Gaston/NNP
,/,
S.C./NNP
,/,
and/CC
Chandler/NNP
,/,
Ariz./NNP
,/,
metal-processing/JJ
operations/NNS
,/,
which/WDT
produce/VBP
annual/JJ
revenue/NN
of/IN
about/RB
$/$
400/CD
million/CD
./.
The/DT
unit/NN
did/VBD
n't/RB
disclose/VB
any/DT
asking/JJ
price/NN
,/,
and/CC
an/DT
AT&T/NNP
spokesman/NN
in/IN
Parsippany/NNP
,/,
N.J./NNP
,/,
said/VBD
he/PRP
could/MD
n't/RB
supply/VB
one/CD
./.
An/DT
industry/NN
analyst/NN
,/,
Robert/NNP
B./NNP
Morris/NNP
III/NNP
in/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
's/POS
San/NNP
Francisco/NNP
office/NN
,/,
said/VBD
the/DT
value/NN
of/IN
the/DT
operations/NNS
is/VBZ
n't/RB
clear/JJ
because/IN
AT&T/NNP
has/VBZ
n't/RB
disclosed/VBD
their/PRP$
book/NN
value/NN
or/CC
earnings/NNS
./.
AT&T/NNP
Nassau/NNP
said/VBD
the/DT
operations/NNS
on/IN
the/DT
block/NN
are/VBP
no/DT
longer/RBR
``/``
strategic/JJ
to/TO
the/DT
core/JJ
business/NN
''/''
of/IN
the/DT
company/NN
,/,
which/WDT
is/VBZ
telecommunications/JJ
./.
The/DT
Gaston/NNP
operation/NN
processes/VBZ
metal/NN
scrap/NN
and/CC
supplies/VBZ
copper/NN
rod/NN
,/,
largely/RB
to/TO
AT&T/NNP
itself/PRP
./.
Also/RB
on/IN
the/DT
block/NN
is/VBZ
a/DT
small/JJ
metal/NN
chopping/NN
operation/NN
in/IN
Chandler/NNP
./.
Increasingly/RB
,/,
copper-based/JJ
technology/NN
has/VBZ
been/VBN
superseded/VBN
by/IN
light-wave/JJ
technology/NN
,/,
Mr./NNP
Morris/NNP
said/VBD
./.
PaineWebber/NNP
Group/NNP
Inc./NNP
ordered/VBD
a/DT
major/JJ
pullback/NN
from/IN
program/NN
trading/NN
amid/IN
mounting/VBG
pressure/NN
on/IN
Wall/NNP
Street/NNP
from/IN
some/DT
of/IN
its/PRP$
biggest/JJS
investors/NNS
./.
Other/JJ
big/JJ
brokerage/NN
firms/NNS
also/RB
showed/VBD
signs/NNS
of/IN
retreating/VBG
from/IN
controversial/JJ
computer-assisted/JJ
trading/NN
,/,
which/WDT
has/VBZ
become/VBN
a/DT
liability/NN
for/IN
Wall/NNP
Street/NNP
after/IN
this/DT
month/NN
's/POS
190-point/JJ
,/,
Friday-the-13th/JJ
plunge/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
./.
Yesterday/NN
,/,
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
said/VBD
it/PRP
will/MD
campaign/VB
for/IN
significant/JJ
curbs/NNS
on/IN
the/DT
most/RBS
common/JJ
form/NN
of/IN
program/NN
trading/NN
--/:
stock-index/JJ
arbitrage/NN
./.
Also/RB
,/,
other/JJ
firms/NNS
including/VBG
American/NNP
Express/NNP
Co./NNP
's/POS
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
unit/NN
and/CC
Oppenheimer/NNP
&/CC
Co./NNP
--/:
are/VBP
debating/VBG
whether/IN
to/TO
follow/VB
PaineWebber/VB
's/POS
lead/VB
and/CC
pull/VB
back/RP
from/IN
program/NN
trading/NN
./.
And/CC
Sears/NNP
,/,
Roebuck/NNP
&/CC
Co./NNP
's/POS
Dean/NNP
Witter/NNP
Reynolds/NNP
Inc./NNP
unit/NN
,/,
which/WDT
used/VBN
to/TO
be/VB
the/DT
10th-biggest/JJ
program/NN
trader/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
said/VBD
it/PRP
is/VBZ
sending/VBG
a/DT
program-bashing/JJ
letter/NN
to/TO
more/JJR
than/IN
two/CD
million/CD
clients/NNS
over/IN
the/DT
next/JJ
month/NN
,/,
among/IN
other/JJ
actions/NNS
that/WDT
may/MD
include/VB
a/DT
nationwide/JJ
advertising/NN
campaign/NN
./.
``/``
Program/NN
trading/NN
is/VBZ
simply/RB
an/DT
idea/NN
whose/WP$
time/NN
has/VBZ
passed/VBN
,/,
''/''
said/VBD
Dean/NNP
Witter/NNP
Chairman/NNP
Philip/NNP
J./NNP
Purcell/NNP
./.
Program/NN
trading/NN
,/,
which/WDT
last/JJ
month/NN
accounted/VBD
for/IN
a/DT
record/NN
13.8/CD
%/NN
of/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
volume/NN
,/,
refers/VBZ
to/TO
a/DT
variety/NN
of/IN
computer-assisted/JJ
trading/NN
of/IN
large/JJ
amounts/NNS
of/IN
stocks/NNS
,/,
stock-index/JJ
futures/NNS
and/CC
options/NNS
./.
Much/JJ
of/IN
the/DT
trading/NN
is/VBZ
geared/VBN
to/TO
short-term/JJ
gains/NNS
caused/VBN
by/IN
brief/JJ
price/NN
swings/NNS
in/IN
volatile/JJ
markets/NNS
./.
Wall/NNP
Street/NNP
pulled/VBD
back/RP
briefly/NN
from/IN
program/NN
trading/NN
after/IN
the/DT
October/NNP
1987/CD
stock/NN
crash/NN
./.
But/CC
then/RB
it/PRP
charged/VBD
back/RB
in/RB
,/,
emboldened/VBN
by/IN
post-crash/JJ
studies/NNS
that/WDT
exonerated/VBD
program/NN
trading/NN
from/IN
causing/VBG
the/DT
crash/NN
big/JJ
price/NN
swings/NNS
And/CC
now/RB
it/PRP
's/VBZ
reeling/VBG
from/IN
a/DT
renewed/JJ
outcry/NN
--/:
this/DT
time/NN
not/RB
only/RB
from/IN
small/JJ
individual/JJ
investors/NNS
,/,
but/CC
from/IN
major/JJ
institutions/NNS
that/WDT
control/VBP
big/JJ
trading/NN
commissions/NNS
./.
The/DT
criticism/NN
came/VBD
to/TO
a/DT
head/NN
Tuesday/NNP
when/WRB
Kemper/NNP
Corp./NNP
,/,
a/DT
big/JJ
insurance/NN
and/CC
financial-services/NNS
firm/NN
,/,
cut/VBD
off/RP
four/CD
Wall/NNP
Street/NNP
firms/NNS
that/WDT
engage/VBP
in/IN
program/NN
trading/NN
--/:
Oppenheimer/NNP
,/,
General/NNP
Electric/NNP
Co./NNP
's/POS
Kidder/NNP
,/,
Peabody/NNP
&/CC
Co./NNP
,/,
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
and/CC
Bear/NNP
,/,
Stearns/NNP
&/CC
Co./NNP
--/:
from/IN
getting/VBG
any/DT
more/JJR
of/IN
Kemper/NNP
's/POS
stock-trading/JJ
business/NN
./.
Other/JJ
big/JJ
investors/NNS
are/VBP
following/VBG
Kemper/NNP
's/POS
lead/NN
./.
Yesterday/NN
,/,
another/DT
institutional/JJ
investor/NN
--/:
Keystone/NNP
Group/NNP
Inc./NNP
,/,
a/DT
Boston/NNP
mutual-fund/NN
company/NN
--/:
said/VBD
it/PRP
will/MD
boycott/VB
firms/NNS
that/WDT
engage/VBP
in/IN
index/NN
arbitrage/NN
./.
The/DT
firm/NN
manages/VBZ
$/$
2.5/CD
billion/CD
in/IN
stock/NN
mutual/JJ
funds/NNS
./.
``/``
These/DT
firms/NNS
,/,
by/IN
using/VBG
proprietary/JJ
index-arbitrage/NN
trading/NN
techniques/NNS
,/,
have/VBP
been/VBN
competing/VBG
with/IN
their/PRP$
own/JJ
customers/NNS
,/,
''/''
said/VBD
Albert/NNP
H./NNP
Elfner/NNP
III/NNP
,/,
president/NN
of/IN
Keystone/NN
./.
``/``
Their/PRP$
actions/NNS
can/MD
hurt/VB
long-term/JJ
,/,
fundamentally/RB
oriented/JJ
investors/NNS
,/,
and/CC
have/VB
undermined/VBN
public/JJ
trust/NN
in/IN
the/DT
fairness/NN
of/IN
the/DT
markets/NNS
./.
''/''
Another/DT
institutional/JJ
investor/NN
,/,
Penn/NNP
Mutual/NNP
Life/NNP
Insurance/NNP
Co./NNP
,/,
said/VBD
it/PRP
might/MD
join/VB
Kemper/NNP
in/IN
avoiding/VBG
program-trading/NN
brokerage/NN
firms/NNS
./.
Such/JJ
companies/NNS
as/IN
Keystone/NNP
,/,
Kemper/NNP
and/CC
Penn/NNP
Mutual/NNP
are/VBP
dependent/JJ
on/IN
business/NN
from/IN
small/JJ
investors/NNS
,/,
who/WP
have/VBP
been/VBN
peppering/VBG
them/PRP
with/IN
complaints/NNS
about/IN
program/NN
trading/NN
and/CC
have/VBP
retreated/VBN
from/IN
the/DT
financial/JJ
markets/NNS
since/IN
the/DT
1987/CD
crash/NN
./.
``/``
We/PRP
have/VBP
n't/RB
decided/VBD
to/TO
blacklist/VB
any/DT
firms/NNS
./.
But/CC
there/EX
's/VBZ
a/DT
chance/NN
we/PRP
might/MD
,/,
''/''
said/VBD
David/NNP
Wilson/NNP
,/,
head/NN
of/IN
Penn/NNP
Mutual/NNP
's/POS
$/$
100/CD
million/CD
stock/NN
portfolio/NN
./.
``/``
We/PRP
are/VBP
very/RB
upset/JJ
about/IN
what/WP
has/VBZ
happened/VBN
to/TO
the/DT
stock/NN
market/NN
./.
Program/NN
trading/NN
is/VBZ
almost/RB
like/IN
sitting/VBG
on/IN
a/DT
calm/JJ
beach/NN
and/CC
have/VB
a/DT
tidal/JJ
wave/NN
hit/VB
you/PRP
./.
''/''
Penn/NNP
Mutual/NNP
owns/VBZ
the/DT
regional/JJ
brokerage/NN
firm/NN
Janney/NNP
Montgomery/NNP
Scott/NNP
Inc./NNP
in/IN
Philadelphia/NNP
./.
Yesterday/NN
,/,
several/JJ
officials/NNS
from/IN
Janney/NNP
visited/VBD
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
to/TO
lobby/VB
against/IN
program/NN
trading/NN
./.
The/DT
firm/NN
's/POS
executive/JJ
committee/NN
is/VBZ
considering/VBG
drafting/VBG
an/DT
anti-program-trading/JJ
letter/NN
to/TO
its/PRP$
clients/NNS
and/CC
to/TO
Congress/NNP
./.
Donald/NNP
B./NNP
Marron/NNP
,/,
PaineWebber/NNP
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
said/VBD
the/DT
firm/NN
decided/VBD
after/IN
the/DT
close/NN
of/IN
trading/NN
yesterday/NN
that/IN
it/PRP
would/MD
stop/VB
doing/VBG
index/NN
arbitrage/NN
for/IN
clients/NNS
./.
It/PRP
already/RB
had/VBD
ceased/VBN
that/DT
form/NN
of/IN
trading/NN
for/IN
its/PRP$
own/JJ
account/NN
./.
``/``
It/PRP
seems/VBZ
clear/JJ
to/TO
us/PRP
that/IN
index/NN
arbitrage/NN
is/VBZ
a/DT
big/JJ
contributor/NN
to/TO
{/(
the/DT
market/NN
's/POS
volatility/NN
and/CC
it/PRP
's/VBZ
reducing/VBG
confidence/NN
in/IN
the/DT
market/NN
for/IN
institutional/JJ
and/CC
retail/JJ
clients/NNS
,/,
''/''
Mr./NNP
Marron/NNP
said/VBD
./.
He/PRP
said/VBD
index/NN
arbitrage/NN
is/VBZ
``/``
clearly/RB
,/,
purely/RB
a/DT
speculative/JJ
,/,
hedging/VBG|JJ
arbitrage/NN
strategy/NN
''/''
that/WDT
is/VBZ
``/``
contributing/VBG
to/TO
excess/JJ
volatility/NN
./.
''/''
PaineWebber/NN
,/,
the/DT
fifth-biggest/JJ
program/NN
trader/NN
on/IN
the/DT
Big/NNP
Board/NNP
so/RB
far/RB
this/DT
year/NN
,/,
will/MD
continue/VB
to/TO
engage/VB
in/IN
other/JJ
forms/NNS
of/IN
program/NN
trading/NN
besides/IN
index/NN
arbitrage/NN
,/,
and/CC
indeed/RB
is/VBZ
Wall/NNP
Street/NNP
's/POS
foremost/JJ
practitioner/NN
of/IN
non-arbitrage/JJ
forms/NNS
of/IN
program/NN
trading/NN
in/IN
terms/NNS
of/IN
volume/NN
./.
But/CC
Mr./NNP
Marron/NNP
said/VBD
these/DT
other/JJ
forms/NNS
of/IN
program/NN
trading/NN
,/,
such/JJ
as/IN
using/VBG
computers/NNS
to/TO
buy/VB
or/CC
sell/VB
a/DT
range/NN
of/IN
stocks/NNS
but/CC
not/RB
stock/NN
futures/NNS
,/,
help/VBP
bring/VB
``/``
liquidity/NN
''/''
to/TO
the/DT
market/NN
./.
Goldman/NNP
,/,
which/WDT
does/VBZ
n't/RB
do/VB
index/NN
arbitrage/NN
for/IN
itself/PRP
but/CC
does/VBZ
for/IN
customers/NNS
,/,
is/VBZ
concerned/JJ
about/IN
the/DT
fallout/NN
./.
``/``
Our/PRP$
corporate/JJ
,/,
institutional/JJ
and/CC
individual/JJ
clients/NNS
are/VBP
concerned/JJ
about/IN
what/WP
they/PRP
perceive/VBP
to/TO
be/VB
excessive/JJ
volatility/NN
,/,
''/''
said/VBD
Robert/NNP
E./NNP
Mnuchin/NNP
,/,
senior/JJ
partner/NN
in/IN
charge/NN
of/IN
Goldman/NNP
's/POS
equity/NN
trading/NN
./.
``/``
We/PRP
share/VBP
their/PRP$
concern/NN
./.
Consequently/RB
,/,
we/PRP
will/MD
recommend/VB
{/(
to/TO
regulators/NNS
significant/JJ
curbs/NNS
on/IN
electronic/JJ
access/NN
for/IN
waves/NNS
of/IN
stocks/NNS
which/WDT
add/VBP
volatility/NN
to/TO
the/DT
markets/NNS
./.
''/''
He/PRP
declined/VBD
to/TO
comment/VB
further/RB
./.
Shearson/NNP
,/,
the/DT
11th-biggest/JJ
program/NN
trader/NN
,/,
also/RB
does/VBZ
n't/RB
do/VB
index/NN
arbitrage/NN
for/IN
itself/PRP
./.
Yet/CC
some/DT
officials/NNS
at/IN
a/DT
regular/JJ
management/NN
meeting/NN
Wednesday/NNP
night/NN
urged/VBD
the/DT
firm/NN
's/POS
leaders/NNS
to/TO
pull/VB
out/IN
of/IN
the/DT
practice/NN
completely/RB
,/,
to/TO
appease/VB
small/JJ
investors/NNS
./.
``/``
The/DT
question/NN
was/VBD
:/:
Do/VBP
we/PRP
get/VB
mileage/NN
out/IN
of/IN
not/RB
doing/VBG
it/PRP
for/IN
clients/NNS
?/.
''/''
said/VBD
a/DT
Shearson/NNP
official/NN
./.
But/CC
so/RB
far/RB
,/,
``/``
the/DT
answer/NN
is/VBZ
no/UH
./.
''/''
Oppenheimer/NNP
,/,
a/DT
relatively/RB
minor/JJ
program/NN
trader/NN
,/,
is/VBZ
also/RB
reviewing/VBG
its/PRP$
index-arbitrage/JJ
operation/NN
./.
Not/RB
only/RB
was/VBD
it/PRP
stung/VBN
by/IN
Kemper/NNP
's/POS
boycott/NN
,/,
but/CC
it/PRP
suffered/VBD
an/DT
approximate/JJ
$/$
2.5/CD
million/CD
index-trading/NN
loss/NN
during/IN
the/DT
Friday-the-13th/JJ
plunge/NN
./.
An/DT
Oppenheimer/NNP
spokesman/NN
said/VBD
index/NN
chief/NN
David/NNP
Liptak/NNP
had/VBD
left/VBN
the/DT
firm/NN
and/CC
would/MD
n't/RB
be/VB
replaced/VBN
./.
For/IN
the/DT
time/NN
being/VBG|JJ
,/,
James/NNP
Wiess/NNP
,/,
an/DT
associate/NN
of/IN
Mr./NNP
Liptak/NNP
's/POS
,/,
``/``
is/VBZ
now/RB
our/PRP$
index/NN
arbitrager/NN
,/,
''/''
said/VBD
the/DT
spokesman/NN
./.
The/DT
program-trading/NN
debate/NN
has/VBZ
caused/VBN
splits/NNS
even/RB
within/IN
some/DT
Wall/NNP
Street/NNP
brokerage/NN
firms/NNS
./.
At/IN
Kidder/NNP
Peabody/NNP
,/,
for/IN
example/NN
,/,
the/DT
firm/NN
's/POS
leaders/NNS
staunchly/RB
defend/VBP
its/PRP$
aggressive/JJ
use/NN
of/IN
index/NN
arbitrage/NN
for/IN
both/DT
Kidder/NNP
's/POS
own/JJ
account/NN
and/CC
for/IN
customers/NNS
./.
Kidder/NNP
is/VBZ
the/DT
most/RBS
active/JJ
index/NN
arbitrager/NN
on/IN
the/DT
Big/NNP
Board/NNP
so/RB
far/RB
this/DT
year/NN
,/,
trading/VBG
about/RB
two/CD
million/CD
shares/NNS
a/DT
day/NN
in/IN
the/DT
strategy/NN
./.
However/RB
,/,
Kidder/NNP
's/POS
1,400/CD
brokers/NNS
are/VBP
n't/RB
so/RB
sure/JJ
about/IN
index/NN
arbitrage/NN
./.
Said/VBD
Charles/NNP
V./NNP
Sheehan/NNP
,/,
Kidder/NNP
's/POS
managing/VBG
director/NN
in/IN
charge/NN
of/IN
retail/JJ
business/NN
:/:
``/``
To/TO
try/VB
to/TO
talk/VB
to/TO
{/(
stockbrokers/NNS
the/DT
virtues/NNS
of/IN
program/NN
trading/NN
is/VBZ
like/IN
trying/VBG
to/TO
talk/VB
about/IN
the/DT
virtues/NNS
of/IN
nuclear/JJ
power/NN
to/TO
the/DT
Audubon/NNP
Society/NNP
./.
''/''
He/PRP
conceded/VBD
``/``
there/EX
is/VBZ
a/DT
little/JJ
bit/NN
of/IN
a/DT
conflict/NN
there/RB
''/''
between/IN
Kidder/NNP
's/POS
active/JJ
program/NN
trading/NN
and/CC
its/PRP$
wooing/NN
of/IN
individual/JJ
investors/NNS
./.
There/EX
's/VBZ
a/DT
similar/JJ
split/NN
at/IN
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
,/,
the/DT
Big/NNP
Board/NNP
's/POS
3rd-biggest/JJ
program-trading/NN
firm/NN
./.
Although/IN
a/DT
Merrill/NNP
spokesman/NN
stressed/VBD
the/DT
firm/NN
does/VBZ
program/NN
trading/NN
only/RB
for/IN
clients/NNS
--/:
``/``
These/DT
are/VBP
our/PRP$
clients/NNS
and/CC
we/PRP
have/VBP
a/DT
responsibility/NN
to/TO
them/PRP
''/''
--/:
the/DT
argument/NN
does/VBZ
n't/RB
go/VB
over/RP
on/IN
the/DT
firm/NN
's/POS
front/JJ
lines/NNS
./.
Program/NN
trading/NN
is/VBZ
``/``
scaring/VBG
small/JJ
investors/NNS
away/RP
,/,
''/''
said/VBD
Michael/NNP
Keyes/NNP
,/,
a/DT
Merrill/NNP
broker/NN
in/IN
Ogden/NNP
,/,
Utah/NNP
./.
The/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
insists/VBZ
it/PRP
remains/VBZ
sympathetic/JJ
to/TO
the/DT
individual/JJ
investor/NN
./.
Richard/NNP
Grasso/NNP
,/,
Big/NNP
Board/NNP
president/NN
,/,
said/VBD
``/``
it/PRP
's/VBZ
too/RB
early/RB
to/TO
reflect/VB
on/IN
the/DT
comments/NNS
''/''
made/VBN
this/DT
week/NN
by/IN
Kemper/NNP
and/CC
the/DT
other/JJ
program-bashing/JJ
firms/NNS
./.
But/CC
,/,
``/``
we/PRP
value/VBP
our/PRP$
relationships/NNS
with/IN
those/DT
who/WP
use/VBP
the/DT
marketplace/NN
and/CC
are/VBP
certainly/RB
sensitive/JJ
to/TO
their/PRP$
needs/NNS
and/CC
desires/NNS
./.
''/''
When/WRB
Kemper/NNP
cut/VBD
off/RP
four/CD
program-trading/JJ
Wall/NNP
Street/NNP
firms/NNS
from/IN
getting/VBG
any/DT
of/IN
the/DT
big/JJ
insurance/NN
and/CC
financial/JJ
company/NN
's/POS
trading/NN
business/NN
,/,
it/PRP
complained/VBD
that/IN
the/DT
Big/NNP
Board/NNP
has/VBZ
``/``
vested/JJ
interests/NNS
''/''
in/IN
its/PRP$
big/JJ
member/NN
securities/NNS
firms/NNS
that/WDT
engage/VBP
in/IN
program/NN
trading/NN
./.
Christopher/NNP
J./NNP
Chipello/NNP
in/IN
Boston/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Average/JJ
monthly/JJ
program/NN
trading/NN
volume/NN
for/IN
1989/CD
through/IN
September/NNP
,/,
in/IN
millions/NNS
of/IN
shares/NNS
Source/NN
:/:
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
National/NNP
Medical/NNP
Enterprises/NNP
Inc./NNP
,/,
Los/NNP
Angeles/NNP
,/,
said/VBD
the/DT
completion/NN
of/IN
the/DT
spinoff/NN
of/IN
its/PRP$
long-term/JJ
care/NN
operations/NNS
will/MD
be/VB
delayed/VBN
until/IN
early/RB
next/JJ
year/NN
because/IN
of/IN
regulatory/JJ
complexities/NNS
./.
The/DT
health-care/NN
services/NNS
concern/NN
announced/VBD
the/DT
spinoff/NN
plan/NN
last/JJ
January/NNP
,/,
then/RB
revised/VBD
it/PRP
in/IN
May/NNP
and/CC
said/VBD
it/PRP
hoped/VBD
to/TO
complete/VB
it/PRP
by/IN
Nov./NNP
30/CD
./.
But/CC
the/DT
process/NN
involves/VBZ
relicensing/NN
and/CC
other/JJ
transfers/NNS
for/IN
about/RB
360/CD
separate/JJ
nursing-home/NN
facilities/NNS
in/IN
more/JJR
than/IN
30/CD
states/NNS
,/,
the/DT
company/NN
said/VBD
,/,
adding/VBG
that/IN
it/PRP
now/RB
plans/VBZ
for/IN
the/DT
transaction/NN
to/TO
be/VB
completed/VBN
by/IN
Feb./NNP
28/CD
./.
The/DT
new/JJ
company/NN
,/,
Hillhaven/NNP
Corp./NNP
,/,
is/VBZ
expected/VBN
to/TO
have/VB
about/RB
$/$
150/CD
million/CD
in/IN
equity/NN
,/,
a/DT
2-1/CD
debt-to-equity/JJ
ratio/NN
and/CC
to/TO
be/VB
10%-owned/JJ
by/IN
NME/NNP
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
National/NNP
Medical/NNP
shares/NNS
closed/VBD
at/IN
$/$
36.125/CD
,/,
down/RB
25/CD
cents/NNS
./.
London/NNP
share/NN
prices/NNS
closed/VBD
sharply/RB
lower/JJR
Thursday/NNP
after/IN
the/DT
market/NN
's/POS
confidence/NN
in/IN
U.K./NNP
corporate/JJ
profits/NNS
was/VBD
shaken/VBN
severely/RB
by/IN
bellwether/JJ
Imperial/NNP
Chemical/NNP
Industries/NNP
PLC/NNP
's/POS
disappointing/JJ
earnings/NNS
in/IN
the/DT
third/JJ
quarter/NN
./.
Stocks/NNS
rose/VBD
in/IN
Tokyo/NNP
for/IN
the/DT
first/JJ
time/NN
since/IN
Monday/NNP
,/,
and/CC
ended/VBD
mixed/JJ
in/IN
Frankfurt/NNP
./.
In/IN
London/NNP
,/,
ICI/NNP
,/,
which/WDT
is/VBZ
part/NN
of/IN
the/DT
Financial/NNP
Times/NNP
100-share/JJ
index/NN
,/,
said/VBD
its/PRP$
pretax/JJ
profit/NN
for/IN
the/DT
quarter/NN
dropped/VBD
12/CD
%/NN
,/,
significantly/RB
worse/JJR
than/IN
market/NN
expectations/NNS
./.
Its/PRP$
profit/NN
for/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
the/DT
year/NN
rose/VBD
only/RB
9/CD
%/NN
,/,
also/RB
short/RB
of/IN
market/NN
expectations/NNS
./.
As/IN
ICI/NNP
's/POS
share/NN
price/NN
fell/VBD
,/,
the/DT
100-share/JJ
index/NN
followed/VBD
./.
The/DT
index/NN
closed/VBD
at/IN
its/PRP$
intraday/JJ
low/NN
of/IN
2129.4/CD
,/,
down/RB
32.5/CD
points/NNS
./.
``/``
ICI/NNP
is/VBZ
a/DT
bellwether/NN
of/IN
U.K./NNP
corporate/JJ
profitability/NN
,/,
''/''
a/DT
senior/JJ
dealer/NN
with/IN
Warburg/NNP
Securities/NNP
said/VBD
./.
``/``
Its/PRP$
results/NNS
were/VBD
disappointing/JJ
./.
The/DT
market/NN
followed/VBD
./.
''/''
The/DT
30-share/JJ
index/NN
fell/VBD
31.4/CD
points/NNS
to/TO
close/VB
at/IN
1720.5/CD
./.
Volume/NN
was/VBD
443.6/CD
million/CD
shares/NNS
traded/VBN
,/,
better/RBR
than/IN
374.6/CD
million/CD
Wednesday/NNP
,/,
but/CC
still/RB
a/DT
relatively/RB
thin/JJ
session/NN
./.
ICI/NNP
finished/VBD
73/CD
pence/NNS
a/DT
share/NN
lower/JJR
at/IN
#/#
10.97/CD
$/$
17.70/CD
turnover/NN
of/IN
3.4/CD
million/CD
shares/NNS
./.
Analysts/NNS
had/VBD
anticipated/VBN
soft/JJ
earnings/NNS
in/IN
petrochemicals/NNS
and/CC
plastics/NNS
,/,
but/CC
said/VBD
they/PRP
were/VBD
surprised/JJ
by/IN
trading/NN
losses/NNS
in/IN
ICI/NNP
's/POS
specialty/NN
paints/NNS
and/CC
films/NNS
operations/NNS
./.
Dealers/NNS
and/CC
analysts/NNS
also/RB
said/VBD
that/IN
ICI/NNP
's/POS
troubles/NNS
in/IN
specialty/NN
paints/NNS
helped/VBD
underscore/NN
growing/VBG
worries/NNS
over/IN
the/DT
U.S./NNP
economy/NN
./.
ICI/NNP
's/POS
paint/NN
operations/NNS
are/VBP
heavily/RB
involved/VBN
in/IN
the/DT
U.S/NNP
./.
Those/DT
concerns/NNS
were/VBD
fortified/VBN
by/IN
Wall/NNP
Street/NNP
's/POS
continued/JJ
slide/NN
,/,
with/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
down/RB
35.25/CD
points/NNS
at/IN
2618.03/CD
when/WRB
London/NNP
closed/VBD
./.
In/IN
other/JJ
shares/NNS
,/,
U.K./NNP
textile/NN
group/NN
Tootal/NNP
rose/VBD
7/CD
to/TO
120/CD
pence/NN
on/IN
conditional/JJ
clearance/NN
from/IN
regulators/NNS
for/IN
Coats/NNP
Viyella/NNP
's/POS
bid/NN
for/IN
Tootal/NNP
,/,
so/RB
long/RB
as/IN
Coats/NNP
spins/VBZ
off/IN
its/PRP$
U.K./NNP
sewing/NN
thread/NN
business/NN
./.
Coats/NNP
slid/VBD
5/CD
to/TO
142/CD
./.
Tokyo/NNP
stocks/NNS
rebounded/VBD
sharply/RB
from/IN
two/CD
consecutive/JJ
daily/JJ
losses/NNS
,/,
helped/VBN
by/IN
index-related/JJ
buying/NN
by/IN
investment/NN
funds/NNS
in/IN
the/DT
afternoon/NN
session/NN
./.
The/DT
Nikkei/NNP
index/NN
closed/VBD
up/RB
236.09/CD
points/NNS
at/IN
35678.49/CD
./.
The/DT
Tokyo/NNP
stock/NN
price/NN
index/NN
of/IN
first/JJ
section/NN
issues/NNS
was/VBD
up/RB
25.01/CD
at/IN
2697.58/CD
./.
First/JJ
section/NN
volume/NN
was/VBD
estimated/VBN
at/IN
850/CD
million/CD
shares/NNS
,/,
down/RB
from/IN
1.1/CD
billion/CD
Wednesday/NNP
./.
In/IN
early/JJ
trading/NN
in/IN
Tokyo/NNP
Friday/NNP
,/,
the/DT
Nikkei/NNP
index/NN
rose/VBD
36.36/CD
points/NNS
to/TO
35714.85/CD
./.
On/IN
Thursday/NNP
,/,
the/DT
market/NN
opened/VBD
in/IN
a/DT
bullish/JJ
mood/NN
with/IN
participation/NN
from/IN
institutional/JJ
investors/NNS
,/,
who/WP
had/VBD
refrained/VBN
from/IN
active/JJ
trading/NN
in/IN
the/DT
past/JJ
couple/NN
of/IN
months/NNS
./.
Market/NN
observers/NNS
attributed/VBD
improved/JJ
sentiment/NN
to/TO
the/DT
recent/JJ
stability/NN
of/IN
the/DT
dollar/NN
,/,
which/WDT
offset/VBD
expectations/NNS
that/IN
the/DT
U.S./NNP
currency/NN
might/MD
surge/VB
above/IN
the/DT
145-150/CD
yen/NN
level/NN
./.
The/DT
Nikkei/NNP
continued/VBD
to/TO
gain/VB
during/IN
the/DT
afternoon/NN
session/NN
,/,
briefly/NN
reaching/VBG
above/IN
its/PRP$
recent/JJ
record/JJ
level/NN
./.
Trading/NN
focused/VBD
on/IN
large-capitalization/NN
issues/NNS
that/WDT
are/VBP
related/VBN
to/TO
domestic/JJ
demand/NN
and/CC
made/VBD
a/DT
sharp/JJ
contrast/NN
to/TO
export-related/JJ
shares/NNS
./.
Export/NN
shares/NNS
were/VBD
spurned/VBN
because/RB
of/IN
continuing/JJ
uncertainty/NN
on/IN
Wall/NNP
Street/NNP
,/,
said/VBD
Shin/NNP
Tokoi/NNP
,/,
deputy/JJ
general/JJ
manager/NN
of/IN
Japanese/JJ
equities/NNS
at/IN
County/NNP
Natwest/NNP
Securities/NNP
,/,
Japan/NNP
./.
Outstanding/JJ
winners/NNS
Thursday/NNP
were/VBD
non-life/JJ
insurance/NN
and/CC
securities/NNS
companies/NNS
./.
Yasuda/NNP
Fire/NNP
&/CC
Marine/NNP
advanced/VBD
90/CD
yen/NN
to/TO
1,680/CD
yen/NN
$/$
11.90/CD
Taisho/NNP
Marine/NNP
&/CC
Fire/NNP
was/VBD
up/RB
80/CD
at/IN
1,620/CD
,/,
and/CC
Tokio/NNP
Marine/NNP
&/CC
Fire/NNP
advanced/VBD
40/CD
to/TO
2,230/CD
./.
Securities/NNS
companies/NNS
also/RB
made/VBD
across-the-board/JJ
gains/NNS
as/IN
recent/JJ
increases/NNS
in/IN
stock/NN
trading/NN
volume/NN
are/VBP
expected/VBN
to/TO
boost/VB
their/PRP$
commission/NN
income/NN
,/,
traders/NNS
said/VBD
./.
Yamaichi/NNP
Securities/NNP
gained/VBD
120/CD
to/TO
1,940/CD
,/,
Nomura/NNP
Securities/NNP
surged/VBD
260/CD
to/TO
3,450/CD
,/,
and/CC
Nikko/NNP
Securities/NNP
gained/VBD
110/CD
to/TO
1,940/CD
./.
Steel/NNP
shares/NNS
also/RB
ended/VBD
higher/JJR
./.
Sumitomo/NNP
Metal/NNP
was/VBD
up/RB
22/CD
to/TO
703/CD
,/,
and/CC
Nippon/NNP
Steel/NNP
advanced/VBD
24/CD
to/TO
735/CD
./.
Frankfurt/NNP
prices/NNS
ended/VBD
mixed/JJ
in/IN
thin/JJ
trading/NN
after/IN
an/DT
early/JJ
rally/NN
led/VBN
by/IN
Deutsche/NNP
Bank/NNP
fizzled/VBD
during/IN
the/DT
session/NN
./.
The/DT
DAX/NNP
index/NN
,/,
which/WDT
reached/VBD
a/DT
peak/NN
around/RB
1500/CD
early/RB
in/IN
the/DT
day/NN
,/,
closed/VBD
at/IN
1482.62/CD
,/,
up/RB
only/RB
1.54/CD
points/NNS
from/IN
Wednesday/NNP
./.
Deutsche/NNP
Bank/NNP
surged/VBD
at/IN
the/DT
opening/NN
on/IN
news/NN
that/IN
the/DT
bank/NN
has/VBZ
10/CD
%/JJ
holdings/NNS
in/IN
several/JJ
large/JJ
companies/NNS
,/,
including/VBG
insurer/NN
Allianz/NNP
and/CC
reinsurer/JJR
Munich/NNP
Re/NNP
./.
Because/IN
the/DT
shares/NNS
are/VBP
kept/VBN
at/IN
the/DT
historically/RB
lowest/JJS
value/NN
on/IN
the/DT
books/NNS
,/,
they/PRP
constitute/VBP
huge/JJ
hidden/JJ
reserves/NNS
,/,
traders/NNS
said/VBD
./.
The/DT
disclosure/NN
late/RB
Wednesday/NNP
came/VBD
as/IN
Deutsche/NNP
Bank/NNP
announced/VBD
the/DT
issue/NN
of/IN
1.2/CD
million/CD
new/JJ
shares/NNS
for/IN
placement/NN
in/IN
the/DT
Tokyo/NNP
market/NN
./.
Deutsche/NNP
Bank/NNP
jumped/VBD
28.5/CD
marks/NNS
early/RB
in/IN
the/DT
session/NN
,/,
pulling/VBG
the/DT
broader/JJR
market/NN
along/RB
,/,
traders/NNS
said/VBD
./.
But/CC
profit-taking/NN
soon/RB
wiped/VBD
out/RP
these/DT
gains/NNS
,/,
traders/NNS
said/VBD
./.
While/IN
Deutsche/NNP
Bank/NNP
was/VBD
still/RB
12/CD
marks/NNS
higher/JJR
at/IN
657/CD
$/$
358/CD
the/DT
close/NN
,/,
most/JJS
other/JJ
blue-chip/JJ
shares/NNS
had/VBD
small/JJ
losses/NNS
./.
Traders/NNS
said/VBD
the/DT
late/JJ
decline/NN
points/VBZ
to/TO
a/DT
deep/JJ
sense/NN
of/IN
unease/NN
in/IN
the/DT
market/NN
./.
Many/JJ
investment/NN
funds/NNS
have/VBP
already/RB
closed/VBN
their/PRP$
books/NNS
for/IN
the/DT
year/NN
,/,
a/DT
dealer/NN
said/VBD
./.
``/``
People/NNS
have/VBP
made/VBN
excellent/JJ
profits/NNS
in/IN
the/DT
first/JJ
10/CD
months/NNS
,/,
and/CC
they/PRP
do/VBP
n't/RB
want/VB
to/TO
risk/VB
that/DT
any/DT
more/RBR
./.
The/DT
mood/NN
is/VBZ
very/RB
cautious/JJ
,/,
so/IN
I/PRP
do/VBP
n't/RB
think/VB
we/PRP
will/MD
go/VB
firmer/RBR
any/DT
time/NN
soon/RB
./.
''/''
But/CC
other/JJ
traders/NNS
said/VBD
there/EX
are/VBP
good/JJ
buying/NN
opportunities/NNS
at/IN
the/DT
lower/JJR
levels/NNS
because/IN
the/DT
market/NN
should/MD
soon/RB
pull/VB
out/IN
of/IN
its/PRP$
slump/NN
./.
They/PRP
pointed/VBD
to/TO
last/JJ
year/NN
's/POS
example/NN
,/,
when/WRB
the/DT
stock/NN
market/NN
staged/VBD
a/DT
major/JJ
rally/NN
just/RB
before/IN
the/DT
Christmas/NNP
holidays/NNS
./.
Among/IN
other/JJ
banks/NNS
,/,
Dresdner/NNP
Bank/NNP
gained/VBD
1.5/CD
to/TO
321.5/CD
after/IN
receiving/VBG
official/JJ
authorization/NN
to/TO
acquire/VB
Banque/NNP
Internationale/NNP
de/IN
Placement/NNP
in/IN
France/NNP
,/,
but/CC
Commerzbank/NNP
slipped/VBD
0.5/CD
to/TO
246/CD
./.
Elsewhere/RB
,/,
share/NN
prices/NNS
closed/VBD
higher/JJR
in/IN
Zurich/NNP
,/,
lower/JJR
in/IN
Paris/NNP
,/,
Brussels/NNP
,/,
Milan/NNP
and/CC
Amsterdam/NNP
,/,
and/CC
mixed/JJ
in/IN
Stockholm/NNP
./.
Stocks/NNS
closed/VBD
higher/JJR
in/IN
Sydney/NNP
,/,
Taipei/NNP
,/,
Wellington/NNP
and/CC
Seoul/NNP
,/,
lower/JJR
in/IN
Hong/NNP
Kong/NNP
and/CC
Singapore/NNP
and/CC
mixed/JJ
in/IN
Manila/NNP
./.
Here/RB
are/VBP
price/NN
trends/NNS
on/IN
the/DT
world/NN
's/POS
major/JJ
stock/NN
markets/NNS
,/,
as/IN
calculated/VBN
by/IN
Morgan/NNP
Stanley/NNP
Capital/NNP
International/NNP
Perspective/NNP
,/,
Geneva/NNP
./.
To/TO
make/VB
them/PRP
directly/RB
comparable/JJ
,/,
each/DT
index/NN
is/VBZ
based/VBN
on/IN
the/DT
close/NN
of/IN
1969/CD
equaling/VBG
100/CD
./.
The/DT
percentage/NN
change/NN
is/VBZ
since/IN
year-end/NN
./.
Paramount/NNP
Pictures/NNP
Corp./NNP
,/,
New/NNP
York/NNP
,/,
named/VBD
Arthur/NNP
Cohen/NNP
,/,
executive/JJ
vice/NN
president/NN
of/IN
advertising/NN
at/IN
Revlon/NNP
Inc./NNP
,/,
as/IN
the/DT
new/JJ
president/NN
of/IN
marketing/NN
for/IN
its/PRP$
motion/NN
picture/NN
group/NN
./.
Movie/NN
studios/NNS
rarely/RB
turn/VBP
outside/IN
the/DT
industry/NN
for/IN
marketing/NN
executives/NNS
./.
A/DT
few/JJ
years/NNS
ago/RB
,/,
for/IN
example/NN
,/,
Coca-Cola/NNP
Co./NNP
,/,
which/WDT
owns/VBZ
49/CD
%/NN
of/IN
Columbia/NNP
Pictures/NNP
Entertainment/NNP
Inc./NNP
,/,
sent/VBD
one/CD
of/IN
its/PRP$
soft/JJ
drink/NN
marketing/NN
executives/NNS
,/,
Peter/NNP
Sealey/NNP
,/,
to/TO
run/VB
marketing/NN
at/IN
the/DT
studio/NN
./.
Mr./NNP
Sealey/NNP
did/VBD
n't/RB
stay/NN
long/RB
,/,
however/RB
,/,
leaving/VBG
after/IN
a/DT
series/NN
of/IN
management/NN
changes/NNS
./.
Columbia/NNP
is/VBZ
in/IN
the/DT
process/NN
of/IN
being/VBG
acquired/VBN
by/IN
Sony/NNP
Corp/NNP
./.
Mr./NNP
Cohen/NNP
fills/VBZ
a/DT
post/NN
vacated/VBD
earlier/RBR
this/DT
year/NN
by/IN
Sidney/NNP
Ganis/NNP
when/WRB
Mr./NNP
Ganis/NNP
and/CC
Paramount/NNP
's/POS
head/NN
of/IN
distribution/NN
,/,
Barry/NNP
London/NNP
,/,
were/VBD
named/VBN
co-presidents/NNS
of/IN
the/DT
motion/NN
picture/NN
group/NN
./.
Paramount/NNP
Pictures/NNP
is/VBZ
a/DT
unit/NN
of/IN
Paramount/NNP
Communications/NNP
Inc/NNP
./.
Prior/RB
to/TO
joining/VBG
Revlon/NN
in/IN
1986/CD
,/,
Mr./NNP
Cohen/NNP
held/VBD
a/DT
number/NN
of/IN
marketing/NN
and/CC
advertising/NN
posts/NNS
./.
From/IN
1982/CD
to/TO
1985/CD
,/,
he/PRP
was/VBD
president/NN
of/IN
the/DT
ill-fated/JJ
Tele1st/NNP
venture/NN
of/IN
the/DT
ABC/NNP
Video/NNP
Enterprises/NNP
unit/NN
of/IN
Capital/NNP
Cities\/ABC/NNP
Inc./NNP
Tele1st/NNP
attempted/VBD
to/TO
sell/VB
movies/NNS
via/IN
a/DT
service/NN
that/WDT
enabled/VBD
subscribers/NNS
with/IN
videocassette/NN
recorders/NNS
to/TO
tape/VB
movies/NNS
delivered/VBN
on/IN
a/DT
special/JJ
scrambled/JJ
channel/NN
overnight/RB
./.
New/NNP
Hampshire/NNP
Yankee/NNP
Co./NNP
,/,
operator/NN
of/IN
the/DT
Seabrook/NNP
,/,
N.H./NNP
,/,
nuclear/JJ
power/NN
facility/NN
,/,
said/VBD
the/DT
Nuclear/NNP
Regulatory/NNP
Commission/NNP
fined/VBD
it/PRP
$/$
50,000/CD
in/IN
connection/NN
with/IN
improper/JJ
procedures/NNS
in/IN
shutting/VBG
down/RP
the/DT
plant/NN
during/IN
low-power/JJ
testing/NN
last/JJ
June/NNP
./.
Edward/NNP
A./NN
Brown/NNP
,/,
president/NN
of/IN
New/NNP
Hampshire/NNP
Yankee/NNP
,/,
said/VBD
it/PRP
accepts/VBZ
the/DT
decision/NN
and/CC
will/MD
pay/VB
the/DT
fine/NN
./.
He/PRP
noted/VBD
that/IN
the/DT
NRC/NNP
called/VBD
the/DT
event/NN
an/DT
``/``
aberration/NN
''/''
and/CC
never/RB
questioned/VBD
the/DT
safety/NN
of/IN
the/DT
plant/NN
./.
In/IN
June/NNP
,/,
the/DT
plant/NN
's/POS
No./NN
2/CD
executive/NN
,/,
George/NNP
Thomas/NNP
,/,
was/VBD
fired/VBN
because/IN
of/IN
improper/JJ
control-room/NN
procedures/NNS
at/IN
the/DT
plant/NN
before/IN
the/DT
shutdown/NN
./.
New/NNP
Hampshire/NNP
Yankee/NNP
is/VBZ
35.6%-owned/JJ
by/IN
Public/NNP
Service/NNP
Co./NNP
of/IN
New/NNP
Hampshire/NNP
./.
Braniff/NNP
Inc./NNP
said/VBD
it/PRP
has/VBZ
retained/VBN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
to/TO
advise/VB
it/PRP
on/IN
alternatives/NNS
--/:
including/VBG
a/DT
possible/JJ
sale/NN
--/:
as/IN
the/DT
cash-strapped/JJ
airline/NN
maneuvers/VBZ
through/IN
bankruptcy-law/NN
court/NN
proceedings/NNS
./.
The/DT
carrier/NN
,/,
a/DT
unit/NN
of/IN
BIA-COR/NNP
Holding/NNP
Inc./NNP
,/,
sought/VBD
Chapter/NNP
11/CD
protection/NN
Sept./NNP
28/CD
,/,
a/DT
day/NN
after/IN
it/PRP
abruptly/RB
canceled/VBD
flights/NNS
and/CC
laid/VBD
off/RP
2,800/CD
employees/NNS
./.
Braniff/NNP
,/,
which/WDT
had/VBD
launched/VBN
ambitious/JJ
expansion/NN
plans/NNS
over/IN
the/DT
past/JJ
year/NN
,/,
blamed/VBD
its/PRP$
difficulties/NNS
on/IN
the/DT
collapse/NN
of/IN
expected/JJ
financing/NN
./.
It/PRP
was/VBD
Braniff/NNP
's/POS
second/JJ
bankruptcy-law/NN
filing/NN
in/IN
a/DT
decade/NN
./.
The/DT
carrier/NN
sought/VBD
Chapter/NNP
11/CD
protection/NN
in/IN
1982/CD
,/,
emerging/VBG
with/IN
new/JJ
owners/NNS
--/:
the/DT
Pritzker/NNP
family/NN
--/:
who/WP
sold/VBD
it/PRP
in/IN
1988/CD
to/TO
a/DT
group/NN
of/IN
real/JJ
estate/NN
investors/NNS
./.
A/DT
bankruptcy/NN
court/NN
in/IN
Orlando/NNP
,/,
Fla./NNP
,/,
where/WRB
the/DT
case/NN
is/VBZ
being/VBG
heard/VBN
,/,
approved/VBD
Braniff/NNP
's/POS
request/NN
to/TO
retain/VB
Merrill/NNP
Lynch/NNP
./.
Braniff/NNP
currently/RB
operates/VBZ
46/CD
daily/JJ
flights/NNS
to/TO
11/CD
cities/NNS
./.
Before/IN
the/DT
filing/NN
,/,
it/PRP
flew/VBD
to/TO
more/JJR
than/IN
40/CD
cities/NNS
./.
Michael/NNP
B./NNP
Jager/NNP
,/,
a/DT
construction/NN
industry/NN
consultant/NN
,/,
was/VBD
elected/VBN
a/DT
director/NN
of/IN
this/DT
natural/JJ
gas/NN
utility/NN
and/CC
its/PRP$
savings/NNS
and/CC
loan/NN
subsidiary/NN
,/,
PriMerit/NNP
Bank/NNP
./.
He/PRP
succeeds/VBZ
Edward/NNP
M./NNP
Berol/NNP
,/,
who/WP
retired/VBD
./.
Rio/NNP
Algom/NNP
Ltd./NNP
said/VBD
it/PRP
agreed/VBD
to/TO
acquire/VB
Uranium/NNP
Resources/NNP
Inc./NNP
for/IN
$/$
2.55/CD
a/DT
share/NN
,/,
or/CC
about/RB
$/$
66/CD
million/CD
./.
Rio/NNP
Algom/NNP
,/,
a/DT
Toronto-based/JJ
mining/NN
concern/NN
,/,
said/VBD
the/DT
transaction/NN
is/VBZ
subject/JJ
to/TO
a/DT
comprehensive/JJ
review/NN
of/IN
the/DT
Dallas-based/JJ
company/NN
's/POS
business/NN
and/CC
the/DT
signing/NN
of/IN
a/DT
definitive/JJ
agreement/NN
./.
Uranium/NNP
Resources/NNP
earlier/RBR
this/DT
month/NN
said/VBD
it/PRP
had/VBD
signed/VBN
a/DT
non-binding/JJ
letter/NN
of/IN
intent/NN
for/IN
the/DT
acquisition/NN
of/IN
all/DT
of/IN
its/PRP$
shares/NNS
but/CC
did/VBD
n't/RB
identify/VB
the/DT
proposed/JJ
purchaser/NN
./.
The/DT
closely/RB
held/VBN
uranium/NN
producer/NN
also/RB
said/VBD
it/PRP
agreed/VBD
to/TO
pay/VB
Rio/NNP
Algom/NNP
$/$
2/CD
million/CD
plus/CC
expenses/NNS
if/IN
the/DT
proposed/JJ
deal/NN
is/VBZ
n't/RB
completed/VBN
and/CC
Uranium/NNP
Resources/NNP
enters/VBZ
certain/JJ
other/JJ
transactions/NNS
./.
Rio/NN
said/VBD
the/DT
proposed/JJ
acquisition/NN
reflects/VBZ
its/PRP$
expectation/NN
that/IN
uranium/NN
prices/NNS
will/MD
begin/VB
to/TO
pick/VB
up/RP
in/IN
coming/JJ
months/NNS
from/IN
their/PRP$
recent/JJ
depressed/JJ
state/NN
./.
Separately/NNP
,/,
Rio/NNP
Algom/NNP
said/VBD
it/PRP
agreed/VBD
to/TO
pay/VB
Whittaker/NNP
Corp./NNP
of/IN
Los/NNP
Angeles/NNP
$/$
30/CD
million/CD
to/TO
acquire/VB
Whittaker/NNP
Metals/NNP
,/,
a/DT
metals/NNS
distribution/NN
business/NN
with/IN
four/CD
facilities/NNS
in/IN
the/DT
Southwest/NNP
region/NN
./.
Rio/NNP
said/VBD
Whittaker/NNP
Metals/NNP
'/POS
geographical/JJ
base/NN
complements/VBZ
Rio/NNP
's/POS
Vincent/NNP
Metals/NNP
business/NN
,/,
with/IN
outlets/NNS
mainly/RB
in/IN
central/JJ
and/CC
southeastern/JJ
states/NNS
./.
Brunswick/NNP
Corp./NNP
posted/VBD
a/DT
third-quarter/JJ
loss/NN
of/IN
$/$
103.1/CD
million/CD
,/,
or/CC
$/$
1.17/CD
a/DT
share/NN
,/,
reflecting/VBG
a/DT
$/$
100/CD
million/CD
pretax/JJ
charge/NN
due/JJ
to/TO
the/DT
restructuring/NN
of/IN
its/PRP$
marine/JJ
products/NNS
group/NN
./.
In/IN
the/DT
year-earlier/JJ
third/JJ
quarter/NN
,/,
the/DT
Skokie/NNP
,/,
Ill.-based/JJ
company/NN
earned/VBD
$/$
43.2/CD
million/CD
,/,
or/CC
50/CD
cents/NNS
a/DT
share/NN
./.
Sales/NNS
fell/VBD
18/CD
%/NN
to/TO
$/$
627.7/CD
million/CD
from/IN
$/$
767.9/CD
million/CD
./.
Brunswick/NNP
said/VBD
a/DT
28/CD
%/NN
decline/NN
in/IN
its/PRP$
marine/JJ
sales/NNS
during/IN
the/DT
quarter/NN
reflected/VBD
the/DT
continued/JJ
industrywide/JJ
decline/NN
in/IN
domestic/JJ
retail/JJ
sales/NNS
of/IN
marine/JJ
products/NNS
./.
Brunswick/NNP
also/RB
has/VBZ
interests/NNS
in/IN
defense/NN
and/CC
aerospace/JJ
products/NNS
./.
The/DT
company/NN
said/VBD
the/DT
charge/NN
,/,
which/WDT
amounts/VBZ
to/TO
$/$
79.2/CD
million/CD
after/IN
taxes/NNS
,/,
reflects/VBZ
the/DT
write-off/NN
of/IN
certain/JJ
assets/NNS
and/CC
the/DT
estimated/JJ
costs/NNS
associated/VBN
with/IN
the/DT
reorganization/NN
./.
In/IN
July/NNP
,/,
the/DT
company/NN
said/VBD
it/PRP
would/MD
begin/VB
scaling/VBG
back/RP
manufacturing/NN
operations/NNS
in/IN
its/PRP$
marine/JJ
group/NN
and/CC
reduce/VB
the/DT
group/NN
's/POS
work/NN
force/NN
by/IN
20/CD
%/NN
,/,
or/CC
about/RB
4,000/CD
employees/NNS
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Brunswick/NNP
had/VBD
a/DT
loss/NN
of/IN
$/$
65.4/CD
million/CD
,/,
or/CC
74/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
net/JJ
income/NN
of/IN
$/$
176.1/CD
million/CD
,/,
or/CC
$/$
2/CD
a/DT
share/NN
./.
Sales/NNS
fell/VBD
to/TO
$/$
2.19/CD
billion/CD
from/IN
$/$
2.53/CD
billion/CD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Brunswick/NNP
closed/VBD
at/IN
$/$
14.50/CD
,/,
down/RB
37.5/CD
cents/NNS
./.
After/IN
more/RBR
than/IN
a/DT
year/NN
of/IN
losing/VBG
accounts/NNS
and/CC
watching/VBG
its/PRP$
reputation/NN
slide/VB
,/,
Ogilvy/NNP
&/CC
Mather/NNP
's/POS
New/NNP
York/NNP
office/NN
hired/VBD
away/RP
a/DT
top/JJ
creative/JJ
executive/NN
from/IN
flashy/JJ
Chiat\/NNP
as/IN
its/PRP$
creative/JJ
head/NN
./.
Ogilvy/NNP
,/,
a/DT
unit/NN
of/IN
London-based/JJ
WPP/NNP
Group/NNP
,/,
named/VBD
Bill/NNP
Hamilton/NNP
,/,
47/CD
,/,
to/TO
the/DT
top/JJ
creative/JJ
post/NN
in/IN
New/NNP
York/NNP
./.
Mr./NNP
Hamilton/NNP
had/VBD
been/VBN
an/DT
executive/JJ
vice/NN
president/NN
and/CC
creative/JJ
head/NN
of/IN
Chiat\/NNP
's/POS
New/NNP
York/NNP
office/NN
,/,
known/VBN
for/IN
its/PRP$
funky/JJ
work/NN
for/IN
Arrow/NNP
shirts/NNS
,/,
Nynex/NNP
yellow/JJ
pages/NNS
and/CC
Anne/NNP
Klein/NNP
II/NNP
./.
At/IN
Ogilvy/NNP
,/,
he/PRP
succeeds/VBZ
Norman/NNP
Berry/NNP
,/,
who/WP
left/VBD
the/DT
agency/NN
in/IN
June/NNP
but/CC
now/RB
plans/VBZ
to/TO
return/VB
to/TO
the/DT
parent/JJ
company/NN
,/,
WPP/NNP
./.
Chiat\/Day/NN
said/VBD
Lee/NNP
Clow/NNP
,/,
the/DT
agency/NN
's/POS
president/NN
and/CC
chief/JJ
creative/JJ
director/NN
,/,
will/MD
fill/VB
in/RP
as/IN
acting/VBG
New/NNP
York/NNP
creative/JJ
director/NN
until/IN
the/DT
naming/NN
of/IN
Mr./NNP
Hamilton/NNP
's/POS
successor/NN
--/:
or/CC
possibly/RB
successors/NNS
--/:
within/IN
the/DT
next/JJ
few/JJ
weeks/NNS
./.
Mr./NNP
Hamilton/NNP
faces/VBZ
a/DT
daunting/JJ
task/NN
in/IN
reviving/VBG
Ogilvy/NN
's/POS
stagnant/JJ
New/NNP
York/NNP
office/NN
./.
Just/RB
a/DT
few/JJ
months/NNS
ago/RB
,/,
Maxwell/NNP
House/NNP
yanked/VBD
its/PRP$
$/$
50/CD
million/CD
account/NN
from/IN
the/DT
office/NN
,/,
following/VBG
the/DT
loss/NN
last/JJ
year/NN
of/IN
the/DT
$/$
40/CD
million/CD
Hallmark/NNP
account/NN
./.
The/DT
office/NN
has/VBZ
won/VBN
just/RB
a/DT
single/JJ
piece/NN
of/IN
new/JJ
business/NN
--/:
and/CC
a/DT
tiny/JJ
one/NN
,/,
at/IN
that/DT
--/:
this/DT
year/NN
,/,
and/CC
new/JJ
business/NN
wins/NNS
were/VBD
n't/RB
substantial/JJ
last/JJ
year/NN
,/,
either/RB
./.
The/DT
office/NN
is/VBZ
suffering/VBG
from/IN
``/``
a/DT
dead/JJ
battery/NN
,/,
''/''
as/IN
Alan/NNP
Gottesman/NNP
,/,
an/DT
analyst/NN
with/IN
PaineWebber/NNP
,/,
puts/VBZ
it/PRP
./.
And/CC
while/IN
it/PRP
can/MD
be/VB
turned/VBN
around/RP
,/,
he/PRP
says/VBZ
,/,
``/``
It/PRP
ai/VBP
n't/RB
easy/JJ
,/,
and/CC
it/PRP
's/VBZ
been/VBN
parked/VBN
underneath/IN
a/DT
snowdrift/NN
for/IN
a/DT
very/RB
long/JJ
time/NN
./.
''/''
The/DT
New/NNP
York/NNP
office/NN
is/VBZ
just/RB
one/CD
of/IN
many/JJ
Ogilvy/NNP
outposts/NNS
,/,
plenty/NN
of/IN
which/WDT
are/VBP
performing/VBG
well/RB
./.
But/CC
it/PRP
is/VBZ
the/DT
largest/JJS
and/CC
most/RBS
visible/JJ
./.
With/IN
about/IN
$/$
800/CD
million/CD
in/IN
billings/NNS
,/,
it/PRP
's/VBZ
bigger/JJR
than/IN
most/JJS
entire/JJ
agencies/NNS
./.
And/CC
while/IN
it/PRP
has/VBZ
won/VBN
praise/NN
for/IN
some/DT
of/IN
its/PRP$
creative/JJ
work/NN
,/,
especially/RB
for/IN
American/NNP
Express/NNP
,/,
it/PRP
has/VBZ
n't/RB
been/VBN
able/JJ
to/TO
attract/VB
substantial/JJ
new/JJ
business/NN
./.
Ogilvy/NNP
last/JJ
spring/NN
hired/VBD
Michael/NNP
Lesser/NNP
,/,
47/CD
,/,
from/IN
Lowe/NNP
Marschalk/NNP
to/TO
head/VB
up/RP
the/DT
New/NNP
York/NNP
operations/NNS
,/,
but/CC
Mr./NNP
Lesser/NNP
has/VBZ
n't/RB
had/VBN
a/DT
strong/JJ
creative/JJ
leader/NN
to/TO
work/VB
with/IN
him/PRP
./.
Industry/NN
executives/NNS
generally/RB
lauded/VBD
the/DT
move/NN
to/TO
bring/VB
in/RP
Mr./NNP
Hamilton/NNP
,/,
saying/VBG
the/DT
office/NN
needs/VBZ
a/DT
kick/NN
from/IN
the/DT
outside/NN
./.
But/CC
they/PRP
questioned/VBD
whether/IN
there/EX
might/MD
be/VB
a/DT
culture/NN
clash/NN
between/IN
buttoned-up/JJ
Ogilvy/NNP
and/CC
Mr./NNP
Hamilton/NNP
,/,
an/DT
11-year/JJ
veteran/NN
of/IN
Chiat\/Day/NNP
's/POS
freewheeling/JJ
,/,
no-walls-no-doors/JJ
culture/NN
./.
Mr./NNP
Hamilton/NNP
,/,
after/IN
all/DT
,/,
presided/VBD
over/IN
--/:
among/IN
other/JJ
things/NNS
--/:
the/DT
weird/JJ
U.B.U./NNP
Reebok/NNP
campaign/NN
while/IN
at/IN
Chiat\/Day/NNP
./.
Ogilvy/NNP
creates/VBZ
more-mainstream/JJ
ads/NNS
for/IN
clients/NNS
including/VBG
American/NNP
Express/NNP
,/,
Seagram/NNP
and/CC
Mattel/NNP
./.
But/CC
in/IN
an/DT
interview/NN
,/,
Mr./NNP
Hamilton/NNP
said/VBD
a/DT
culture/NN
clash/NN
``/``
is/VBZ
part/NN
of/IN
the/DT
agenda/NN
./.
I/PRP
think/VBP
they/PRP
want/VBP
some/DT
infusion/NN
of/IN
a/DT
different/JJ
attitude/NN
about/IN
how/WRB
you/PRP
go/VBP
about/RB
communicating/VBG
the/DT
advantages/NNS
of/IN
a/DT
certain/JJ
client/NN
./.
''/''
He/PRP
added/VBD
,/,
``/``
A/DT
certain/JJ
amount/NN
of/IN
chaos/NN
is/VBZ
very/RB
good/JJ
in/IN
agencies/NNS
./.
''/''
And/CC
he/PRP
said/VBD
he/PRP
hopes/VBZ
within/IN
three/CD
months/NNS
to/TO
be/VB
``/``
playing/VBG
football/NN
in/IN
the/DT
halls/NNS
at/IN
5:30/CD
in/IN
the/DT
afternoon/NN
./.
''/''
Mr./NNP
Hamilton/NNP
talked/VBD
broadly/RB
of/IN
some/DT
of/IN
the/DT
changes/NNS
he/PRP
'd/MD
like/VB
to/TO
make/VB
at/IN
Ogilvy/NNP
./.
Chiat\/Day/NNP
is/VBZ
one/CD
of/IN
the/DT
few/JJ
American/JJ
agencies/NNS
to/TO
successfully/RB
use/VB
British/JJ
account/NN
planning/NN
--/:
a/DT
method/NN
Ogilvy/NNP
attempted/VBD
briefly/RB
and/CC
largely/RB
unsuccessfully/RB
,/,
and/CC
which/WDT
Mr./NNP
Hamilton/NNP
hopes/VBZ
to/TO
ultimately/RB
bring/VB
with/IN
him/PRP
./.
In/IN
account/NN
planning/NN
,/,
an/DT
executive/NN
with/IN
a/DT
research/NN
background/NN
represents/VBZ
the/DT
consumer/NN
,/,
working/VBG
closely/RB
with/IN
creative/JJ
and/CC
account/NN
executives/NNS
./.
Mr./NNP
Hamilton/NNP
also/RB
said/VBD
he/PRP
might/MD
also/RB
bring/VB
over/RP
some/DT
Chiat\/Day/NNP
veterans/NNS
,/,
though/IN
from/IN
non-New/JJ
York/NNP
offices/NNS
./.
Mr./NNP
Hamilton/NNP
accepted/VBD
the/DT
job/NN
after/IN
repeated/JJ
discussions/NNS
not/RB
just/RB
with/IN
Mr./NNP
Lesser/NNP
,/,
but/CC
with/IN
WPP/NNP
Group/NNP
's/POS
chief/JJ
executive/JJ
officer/NN
,/,
Martin/NNP
Sorrell/NNP
,/,
who/WP
has/VBZ
taken/VBN
a/DT
hands-on/JJ
approach/NN
with/IN
his/PRP$
acquisition/NN
./.
``/``
I/PRP
probably/RB
would/MD
n't/RB
have/VB
accepted/VBN
the/DT
job/NN
had/VBD
it/PRP
not/RB
been/VBN
the/DT
combination/NN
of/IN
Mike/NNP
Lesser/NNP
Martin/NNP
,/,
''/''
he/PRP
said/VBD
./.
``/``
I/PRP
've/VBP
always/RB
been/VBN
intrigued/VBN
by/IN
those/DT
things/NNS
people/NNS
say/VBP
ca/MD
n't/RB
be/VB
done/VBN
./.
Most/JJS
of/IN
the/DT
wags/NNS
and/CC
the/DT
pundits/NNS
of/IN
the/DT
world/NN
will/MD
say/VB
it/PRP
's/VBZ
pretty/RB
tough/JJ
stuff/NN
to/TO
turn/VB
around/RP
an/DT
agency/NN
that/WDT
's/VBZ
been/VBN
going/VBG
in/IN
one/CD
direction/NN
for/IN
a/DT
long/JJ
time/NN
,/,
''/''
he/PRP
said/VBD
./.
``/``
But/CC
I/PRP
do/VBP
n't/RB
think/VB
it/PRP
the/DT
issue/NN
it/PRP
around/RP
--/:
I/PRP
think/VBP
it/PRP
's/VBZ
getting/VBG
back/RB
to/TO
where/WRB
it/PRP
was/VBD
10/CD
or/CC
15/CD
years/NNS
ago/RB
./.
There/EX
are/VBP
pockets/NNS
of/IN
brilliance/NN
there/RB
now/RB
./.
''/''
Kraft/NNP
Taps/VBZ
Margeotes/NNP
Kraft/NNP
General/NNP
Foods/NNP
Group/NNP
has/VBZ
asked/VBN
Margeotes/NNP
Fertitta/NNP
&/CC
Weiss/NNP
,/,
a/DT
small/JJ
New/NNP
York/NNP
agency/NN
,/,
to/TO
try/VB
its/PRP$
hand/NN
at/IN
some/DT
creative/JJ
work/NN
on/IN
a/DT
new/JJ
product/NN
./.
A/DT
Kraft/NNP
General/NNP
Foods/NNP
spokesman/NN
said/VBD
Margeotes/NNS
has/VBZ
been/VBN
given/VBN
an/DT
assignment/NN
to/TO
do/VB
``/``
some/DT
development/NN
work/NN
on/IN
a/DT
venture/NN
project/NN
./.
''/''
Executives/NNS
close/RB
to/TO
the/DT
Glenview/NNP
,/,
Ill.-based/JJ
food/NN
giant/NN
said/VBD
the/DT
work/NN
is/VBZ
for/IN
a/DT
new/JJ
coffee/NN
beverage/NN
product/NN
currently/RB
in/IN
development/NN
./.
Margeotes/NNP
,/,
whose/WP$
clients/NNS
include/VBP
Godiva/NNP
and/CC
Maccabee/NNP
beer/NN
,/,
has/VBZ
had/VBD
a/DT
string/NN
of/IN
new/JJ
business/NN
wins/NNS
./.
It/PRP
recently/RB
picked/VBD
up/RP
the/DT
ad/NN
accounts/NNS
for/IN
Haagen-Dazs/NNP
,/,
Newsday/NNP
and/CC
for/IN
a/DT
number/NN
of/IN
jewelry/NN
lines/NNS
from/IN
Crystal/NNP
Brands/NNP
./.
Separately/NNP
,/,
the/DT
Kraft/NNP
General/NNP
Foods/NNP
spokesman/NN
said/VBD
it/PRP
selected/VBD
D'Arcy/NNP
Masius/NNP
Benton/NNP
&/CC
Bowles/NNP
,/,
New/NNP
York/NNP
,/,
to/TO
handle/VB
its/PRP$
Sealtest/NNP
Free/NNP
non-fat/JJ
ice/NN
cream/NN
account/NN
./.
Executives/NNS
estimated/VBD
that/DT
account/NN
is/VBZ
worth/JJ
about/RB
$/$
6/CD
million/CD
./.
The/DT
account/NN
had/VBD
been/VBN
handled/VBN
by/IN
McCann-Erickson/NNP
./.
Ad/NN
Notes/NNS
.../:
./.
LINTAS/NNP
LAYOFFS/NNS
:/:
About/RB
20/CD
people/NNS
were/VBD
laid/VBN
off/RP
at/IN
Lintas/NNP
's/POS
Ceco/NNP
Communications/NNP
subsidiary/NN
in/IN
Warren/NNP
,/,
Mich./NNP
,/,
on/IN
Tuesday/NNP
./.
Dick/NNP
O'Connor/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/NN
of/IN
Lintas:Campbell-Ewald/NNP
,/,
said/VBD
the/DT
office/NN
is/VBZ
n't/RB
growing/VBG
as/IN
expected/VBN
./.
Heating/NN
oil/NN
futures/NNS
prices/NNS
fell/VBD
sharply/RB
after/IN
some/DT
market/NN
players/NNS
moved/VBD
to/TO
reduce/VB
their/PRP$
exposure/NN
to/TO
the/DT
vagaries/NNS
of/IN
weather/NN
./.
Balmy/JJ
autumn/NN
days/NNS
might/MD
be/VB
blissful/JJ
for/IN
the/DT
average/JJ
Joe/NNP
,/,
but/CC
not/RB
for/IN
the/DT
speculators/NNS
on/IN
the/DT
New/NNP
York/NNP
Mercantile/NNP
Exchange/NNP
who/WP
bought/VBD
heating/NN
oil/NN
aggressively/RB
in/IN
September/NNP
and/CC
October/NNP
,/,
betting/VBG
on/IN
an/DT
early/JJ
,/,
harsh/JJ
winter/NN
./.
As/IN
October/NNP
draws/VBZ
to/TO
a/DT
close/NN
,/,
weather/NN
is/VBZ
still/RB
generally/RB
warm/JJ
in/IN
Europe/NNP
and/CC
in/IN
the/DT
U.S./NNP
,/,
especially/RB
the/DT
Northeast/NNP
where/WRB
much/JJ
heating/NN
oil/NN
is/VBZ
consumed/VBN
./.
In/IN
New/NNP
York/NNP
Mercantile/NNP
Exchange/NNP
trading/NN
yesterday/NN
,/,
many/JJ
who/WP
had/VBD
been/VBN
counting/VBG
on/IN
dips/NNS
in/IN
the/DT
mercury/NN
started/VBD
liquidating/VBG
heating/NN
oil/NN
./.
The/DT
selling/NN
pushed/VBD
November/NNP
heating/NN
oil/NN
futures/NNS
contracts/VBZ
1.2/CD
cents/NNS
a/DT
gallon/NN
lower/RBR
to/TO
57.24/CD
cents/NNS
,/,
one/CD
of/IN
the/DT
most/RBS
sizable/JJ
moves/NNS
in/IN
either/DT
direction/NN
during/IN
the/DT
past/JJ
several/JJ
trading/NN
sessions/NNS
./.
Petroleum/NN
futures/NNS
prices/NNS
had/VBD
been/VBN
caught/VBN
in/IN
a/DT
tug-of-war/NN
,/,
pulled/VBN
in/IN
one/CD
direction/NN
by/IN
continuing/JJ
strong/JJ
demand/NN
and/CC
in/IN
the/DT
opposite/JJ
direction/NN
by/IN
continuing/JJ
high/JJ
output/NN
from/IN
the/DT
Organization/NNP
of/IN
Petroleum/NNP
Exporting/NNP
Countries/NNP
./.
But/CC
yesterday/NN
's/POS
drop/NN
in/IN
heating/NN
oil/NN
pushed/VBD
crude/NN
significantly/RB
lower/RBR
,/,
as/RB
well/RB
./.
West/NNP
Texas/NNP
Intermediate/NNP
,/,
the/DT
U.S./NNP
benchmark/JJ
crude/NN
,/,
fell/VBD
24/CD
cents/NNS
a/DT
barrel/NN
to/TO
close/VB
at/IN
$/$
19.38/CD
a/DT
barrel/NN
for/IN
December/NNP
delivery/NN
./.
Some/DT
traders/NNS
have/VBP
said/VBN
December/NNP
WTI/NNP
could/MD
well/RB
continue/VB
downward/RB
to/TO
as/RB
low/JJ
as/IN
$/$
18.50/CD
a/DT
barrel/NN
./.
Even/RB
reports/NNS
of/IN
a/DT
Persian/NNP
Gulf/NNP
incident/NN
between/IN
former/JJ
war/NN
foes/NNS
Iran/NNP
and/CC
Iraq/NNP
failed/VBD
to/TO
shake/VB
crude/NN
's/POS
doldrums/NNS
./.
Shipping/NN
industry/NN
sources/NNS
said/VBD
two/CD
Iranian/JJ
gunboats/NNS
attacked/VBD
an/DT
Iraqi/JJ
tugboat/NN
near/IN
an/DT
Iraq/NNP
offshore/JJ
oil/NN
terminal/NN
in/IN
the/DT
northern/JJ
part/NN
of/IN
the/DT
gulf/NN
./.
Details/NNS
remained/VBD
sketchy/JJ
,/,
the/DT
sources/NNS
said/VBD
,/,
but/CC
Iraq/NNP
reportedly/RB
did/VBD
n't/RB
consider/VB
the/DT
attack/NN
to/TO
be/VB
a/DT
hostile/JJ
act/NN
./.
Neither/RB
did/VBD
the/DT
petroleum/NN
markets/NNS
seem/VB
to/TO
pay/VB
much/JJ
attention/NN
to/TO
reports/NNS
that/IN
Alaskan/JJ
officials/NNS
had/VBD
refused/VBN
to/TO
let/VB
a/DT
Unocal/NNP
oil/NN
tanker/NN
dock/NN
at/IN
a/DT
refinery/NN
because/IN
it/PRP
did/VBD
n't/RB
have/VB
an/DT
oil-spill/NN
contingency/NN
plan/NN
approved/VBN
by/IN
the/DT
state/NN
./.
One/CD
broker/NN
said/VBD
the/DT
markets/NNS
might/MD
have/VB
been/VBN
more/RBR
bullish/JJ
had/VBD
a/DT
tanker/NN
been/VBN
refused/VBN
access/NN
to/TO
Valdez/NNP
,/,
the/DT
terminal/JJ
port/NN
for/IN
the/DT
Alaskan/JJ
pipeline/NN
and/CC
site/NN
last/JJ
spring/NN
of/IN
the/DT
biggest/JJS
oil/NN
spill/NN
in/IN
U.S./NNP
waters/NNS
./.
Only/RB
gasoline/NN
managed/VBD
to/TO
escape/VB
the/DT
slide/NN
that/WDT
dominated/VBD
other/JJ
petroleum/NN
futures/NNS
trading/NN
./.
Unleaded/JJ
gasoline/NN
for/IN
November/NNP
delivery/NN
ended/VBD
yesterday/NN
's/POS
session/NN
.23/CD
cent/NN
a/DT
gallon/NN
higher/JJR
at/IN
53.63/CD
cents/NNS
./.
In/IN
other/JJ
commodity/NN
markets/NNS
yesterday/NN
:/:
GRAINS/NNS
AND/CC
SOYBEANS/NNS
:/:
The/DT
prices/NNS
of/IN
wheat/JJ
futures/NNS
contracts/NNS
dipped/VBD
amid/IN
reports/NNS
of/IN
beneficial/JJ
rain/NN
in/IN
the/DT
winter/NN
wheat/NN
growing/NN
regions/NNS
of/IN
Argentina/NNP
and/CC
forecasts/NNS
for/IN
widespread/JJ
rain/NN
this/DT
weekend/NN
in/IN
the/DT
U.S./NNP
in/IN
winter/NN
wheat/NN
states/NNS
such/JJ
as/IN
Kansas/NNP
and/CC
Oklahoma/NNP
,/,
said/VBD
Victor/NNP
Lespinasse/NNP
,/,
a/DT
floor/NN
broker/NN
for/IN
Dean/NNP
Witter/NNP
Reynolds/NNP
,/,
Chicago/NNP
./.
In/IN
the/DT
U.S./NNP
,/,
winter/NN
wheat/NN
is/VBZ
planted/VBN
in/IN
the/DT
fall/NN
and/CC
harvested/VBN
in/IN
the/DT
early/JJ
summer/NN
./.
The/DT
prices/NNS
of/IN
corn/NN
futures/NNS
contracts/NNS
rose/VBD
slightly/RB
./.
PRECIOUS/JJ
METALS/NNS
:/:
Futures/NNS
prices/NNS
jumped/VBD
to/TO
life/NN
,/,
bestirred/VBN
by/IN
a/DT
highly/RB
volatile/JJ
stock/NN
market/NN
and/CC
the/DT
resignation/NN
of/IN
a/DT
key/JJ
figure/NN
in/IN
the/DT
Conservative/JJ
government/NN
of/IN
British/NNP
Prime/NNP
Minister/NNP
Margaret/NNP
Thatcher/NNP
./.
December/NNP
gold/NN
climbed/VBD
above/IN
the/DT
critical/JJ
$/$
375-an-ounce/JJ
level/NN
to/TO
settle/VB
at/IN
$/$
375.40/CD
,/,
up/RB
$/$
3.10/CD
./.
December/NNP
silver/NN
added/VBD
7.7/CD
cents/NNS
to/TO
close/VB
at/IN
$/$
5.237/CD
an/DT
ounce/NN
./.
January/NNP
platinum/NN
tacked/VBD
on/IN
$/$
3.60/CD
an/DT
ounce/NN
to/TO
settle/VB
at/IN
$/$
490/CD
./.
Market/NN
analysts/NNS
said/VBD
that/IN
continued/JJ
declines/NNS
and/CC
volatility/NN
in/IN
the/DT
stock/NN
market/NN
contributed/VBD
generally/RB
to/TO
enhanced/JJ
investor/NN
interest/NN
in/IN
precious/JJ
metals/NNS
,/,
but/CC
that/IN
the/DT
British/JJ
political/JJ
news/NN
was/VBD
the/DT
main/JJ
factor/NN
boosting/VBG
prices/NNS
:/:
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
Nigel/NNP
Lawson/NNP
resigned/VBD
./.
Sir/NNP
Alan/NNP
Walters/NNP
,/,
Mrs./NNP
Thatcher/NNP
's/POS
economic/JJ
adviser/NN
,/,
also/RB
announced/VBD
that/IN
he/PRP
will/MD
resign/VB
./.
With/IN
the/DT
metals/NNS
markets/NNS
closed/VBN
in/IN
London/NNP
when/WRB
the/DT
news/NN
was/VBD
announced/VBN
,/,
a/DT
lot/NN
of/IN
U.K./NNP
buying/NN
came/VBD
to/TO
the/DT
U.S./NNP
,/,
said/VBD
Peter/NNP
Cardillo/NNP
,/,
commodities/NNS
trading/VBG
adviser/NN
for/IN
Josephthal/NNP
&/CC
Co./NNP
in/IN
New/NNP
York/NNP
./.
Mr./NNP
Cardillo/NNP
noted/VBD
that/IN
the/DT
drop/NN
in/IN
the/DT
British/JJ
pound/NN
following/VBG
Mr./NNP
Lawson/NNP
's/POS
resignation/NN
fueled/VBD
the/DT
metals/NNS
'/POS
rally/NN
as/IN
investors/NNS
sought/VBD
a/DT
safe/JJ
haven/NN
./.
He/PRP
said/VBD
he/PRP
believes/VBZ
the/DT
rally/NN
in/IN
the/DT
metals/NNS
is/VBZ
going/VBG
to/TO
be/VB
very/RB
short-lived/JJ
./.
William/NNP
O'Neill/NNP
,/,
research/NN
director/NN
of/IN
Elders/NNP
Futures/NNP
Inc./NNP
,/,
said/VBD
that/IN
if/IN
December/NNP
gold/NN
can/MD
close/VB
above/IN
$/$
375/CD
for/IN
two/CD
consecutive/JJ
days/NNS
,/,
he/PRP
would/MD
regard/VB
that/DT
as/IN
a/DT
bullish/JJ
sign/NN
./.
However/RB
,/,
he/PRP
expected/VBD
any/DT
strong/JJ
rallies/NNS
to/TO
be/VB
met/VBN
by/IN
producer/NN
selling/NN
./.
``/``
Both/DT
the/DT
Soviet/NNP
Union/NNP
and/CC
South/NNP
Africa/NNP
must/MD
sell/VB
these/DT
rallies/NNS
,/,
''/''
he/PRP
said/VBD
./.
The/DT
two/CD
countries/NNS
are/VBP
major/JJ
producers/NNS
of/IN
precious/JJ
metals/NNS
./.
But/CC
he/PRP
also/RB
noted/VBD
that/IN
if/IN
uncertainty/NN
continues/VBZ
in/IN
the/DT
stock/NN
market/NN
,/,
that/WDT
might/MD
create/VB
some/DT
investor/NN
interest/NN
in/IN
precious/JJ
metals/NNS
./.
That/DT
interest/NN
has/VBZ
been/VBN
lacking/JJ
for/IN
a/DT
long/JJ
time/NN
,/,
he/PRP
said/VBD
./.
COPPER/NN
:/:
Futures/NNS
prices/NNS
fell/VBD
./.
The/DT
December/NNP
contract/NN
dropped/VBD
1.35/CD
cents/NNS
to/TO
settle/VB
at/IN
$/$
1.142/CD
a/DT
pound/NN
./.
Mr./NNP
O'Neill/NNP
said/VBD
copper/NN
's/POS
price/NN
action/NN
this/DT
week/NN
indicates/VBZ
general/JJ
weakness/NN
./.
``/``
It/PRP
easily/RB
violated/VBD
major/JJ
support/NN
at/IN
$/$
1.19/CD
and/CC
then/RB
{/(
yesterday/NN
}/)
closed/VBD
under/IN
secondary/JJ
support/NN
at/IN
$/$
1.15/CD
,/,
''/''
he/PRP
said/VBD
./.
He/PRP
believes/VBZ
the/DT
next/JJ
area/NN
of/IN
technical/JJ
support/NN
is/VBZ
at/IN
the/DT
$/$
1.10/CD
level/NN
./.
Mr./NNP
O'Neill/NNP
said/VBD
the/DT
market/NN
was/VBD
hit/VBN
on/IN
Wednesday/NNP
with/IN
the/DT
news/NN
that/IN
the/DT
atmosphere/NN
surrounding/VBG
the/DT
negotiations/NNS
on/IN
the/DT
strike/NN
at/IN
Bougainville/NNP
,/,
Papua/NNP
New/NNP
Guinea/NNP
,/,
may/MD
have/VB
improved/VBN
./.
But/CC
he/PRP
said/VBD
he/PRP
doubts/VBZ
that/IN
a/DT
settlement/NN
is/VBZ
anywhere/RB
in/IN
sight/NN
./.
He/PRP
also/RB
believes/VBZ
that/IN
the/DT
market/NN
may/MD
have/VB
already/RB
discounted/VBN
any/DT
good/JJ
news/NN
that/WDT
might/MD
be/VB
associated/VBN
with/IN
this/DT
strike/NN
./.
Mr./NNP
Cardillo/NNP
said/VBD
that/DT
copper/NN
is/VBZ
reflecting/VBG
a/DT
weakening/VBG
U.S./NNP
economy/NN
and/CC
that/IN
he/PRP
would/MD
be/VB
neither/CC
a/DT
buyer/NN
nor/CC
a/DT
seller/NN
at/IN
these/DT
levels/NNS
./.
COCOA/NN
:/:
Futures/NNP
prices/NNS
dropped/VBD
again/RB
,/,
extending/VBG
the/DT
declining/NN
trend/NN
./.
The/DT
December/NNP
contract/NN
settled/VBD
at/IN
$/$
961/CD
a/DT
metric/JJ
ton/NN
,/,
off/RB
$/$
38/CD
./.
The/DT
contract/NN
's/POS
low/JJ
point/NN
yesterday/NN
,/,
$/$
956/CD
,/,
was/VBD
both/DT
a/DT
life-of-contract/JJ
low/JJ
and/CC
a/DT
14-year/JJ
low/JJ
price/NN
for/IN
cocoa/NN
./.
The/DT
decline/NN
was/VBD
apparently/RB
sparked/VBN
by/IN
rumors/NNS
that/IN
the/DT
Ivory/NNP
Coast/NNP
,/,
a/DT
major/JJ
African/JJ
producer/NN
,/,
sold/VBD
20,000/CD
tons/NNS
in/IN
London/NNP
on/IN
Wednesday/NNP
./.
Mr./NNP
O'Neill/NNP
said/VBD
the/DT
market/NN
is/VBZ
so/RB
fragile/JJ
and/CC
weak/JJ
that/IN
it/PRP
ca/MD
n't/RB
absorb/VB
any/DT
selling/NN
./.
Bert/NNP
Ruiz/NNP
,/,
soft/JJ
commodity/NN
specialist/NN
at/IN
Balfour/NNP
,/,
Maclaine/NNP
Futures/NNP
Inc./NNP
,/,
said/VBD
that/IN
all/DT
week/NN
he/PRP
has/VBZ
seen/VBN
increasing/VBG
open/JJ
interest/NN
and/CC
declining/VBG
prices/NNS
--/:
an/DT
almost/RB
certain/JJ
sign/NN
that/IN
additional/JJ
selling/NN
of/IN
contracts/NNS
is/VBZ
taking/VBG
place/NN
./.
Open/JJ
interest/NN
is/VBZ
the/DT
number/NN
of/IN
outstanding/JJ
contracts/NNS
that/WDT
remain/VBP
to/TO
be/VB
settled/VBN
either/CC
by/IN
an/DT
opposite/JJ
trade/NN
or/CC
delivery/NN
./.
``/``
I/PRP
think/VBP
trade/NN
interests/NNS
are/VBP
hedging/VBG
their/PRP$
physical/JJ
cocoa/NN
with/IN
new/JJ
sales/NNS
,/,
''/''
he/PRP
said/VBD
./.
He/PRP
also/RB
pointed/VBD
out/RP
that/IN
the/DT
volume/NN
on/IN
Wednesday/NNP
was/VBD
8,839/CD
contracts/NNS
,/,
which/WDT
for/IN
cocoa/NN
is/VBZ
extremely/RB
heavy/JJ
./.
Mr./NNP
Ruiz/NNP
said/VBD
that/IN
the/DT
producers/NNS
of/IN
cocoa/NN
have/VBP
no/DT
choice/NN
but/CC
to/TO
sell/VB
their/PRP$
stocks/NNS
because/IN
of/IN
their/PRP$
need/NN
for/IN
hard/JJ
currencies/NNS
./.
He/PRP
believes/VBZ
that/IN
the/DT
major/JJ
cocoa/NN
buyers/NNS
are/VBP
well/RB
aware/JJ
of/IN
the/DT
sad/JJ
state/NN
of/IN
the/DT
market/NN
and/CC
are/VBP
taking/VBG
advantage/NN
of/IN
the/DT
weakening/VBG
prices/NNS
by/IN
doing/VBG
``/``
scale-down/JJ
buying/NN
./.
''/''
That/DT
is/VBZ
,/,
they/PRP
mostly/RB
buy/VBP
just/RB
enough/JJ
cocoa/NN
to/TO
satisfy/VB
their/PRP$
current/JJ
needs/NNS
--/:
a/DT
common/JJ
strategy/NN
in/IN
a/DT
falling/VBG
market/NN
./.
Hercules/NNP
Inc./NNP
put/VBD
its/PRP$
``/``
nominally/RB
profitable/JJ
''/''
Electronic/NNP
&/CC
Printing/NNP
Products/NNP
subsidiary/NN
on/IN
the/DT
auction/NN
block/NN
,/,
saying/VBG
the/DT
unit/NN
does/VBZ
n't/RB
fit/VB
in/RP
with/IN
the/DT
diversified/JJ
chemical/NN
company/NN
's/POS
recent/JJ
change/NN
in/IN
strategic/JJ
goals/NNS
./.
Earlier/RBR
this/DT
year/NN
,/,
Hercules/NNS
decided/VBD
to/TO
sell/VB
its/PRP$
peripheral/JJ
businesses/NNS
and/CC
concentrate/VB
its/PRP$
resources/NNS
on/IN
its/PRP$
core/NN
chemical/NN
businesses/NNS
,/,
including/VBG
advanced/JJ
materials/NNS
and/CC
food/NN
ingredients/NNS
./.
The/DT
electronic/JJ
and/CC
printing/NN
unit/NN
,/,
which/WDT
has/VBZ
annual/JJ
sales/NNS
of/IN
about/RB
$/$
80/CD
million/CD
,/,
is/VBZ
the/DT
first/JJ
unit/NN
to/TO
be/VB
sold/VBN
under/IN
the/DT
restructuring/NN
./.
Hercules/NNP
,/,
based/VBN
in/IN
Wilmington/NNP
,/,
Del./NNP
,/,
said/VBD
it/PRP
has/VBZ
received/VBN
``/``
numerous/JJ
unsolicited/JJ
inquiries/NNS
''/''
over/IN
the/DT
last/JJ
18/CD
months/NNS
about/IN
the/DT
unit/NN
's/POS
availability/NN
./.
It/PRP
is/VBZ
seeking/VBG
a/DT
buyer/NN
who/WP
will/MD
run/VB
the/DT
business/NN
under/IN
current/JJ
management/NN
and/CC
``/``
whose/WP$
strategy/NN
is/VBZ
to/TO
maintain/VB
strong/JJ
growth/NN
./.
''/''
The/DT
subsidiary/NN
produces/VBZ
materials/NNS
used/VBN
in/IN
printing/NN
and/CC
in/IN
the/DT
fabrication/NN
of/IN
printed/JJ
circuit/NN
boards/NNS
./.
Norwegian/JJ
industrial/JJ
and/CC
energy/NN
concern/NN
Norsk/NNP
Hydro/NNP
A.S./NNP
said/VBD
pretax/JJ
profit/NN
dropped/VBD
1.9/CD
%/NN
to/TO
4.12/CD
billion/CD
Norwegian/JJ
kroner/NN
$/$
599.1/CD
million/CD
10.30/CD
kroner/NN
a/DT
share/NN
,/,
in/IN
the/DT
first/JJ
nine/CD
months/NNS
from/IN
4.20/CD
billion/CD
kroner/NN
,/,
or/CC
11/CD
kroner/NN
a/DT
share/NN
,/,
in/IN
the/DT
corresponding/JJ
period/NN
last/JJ
year/NN
./.
Norsk/NNP
Hydro/NNP
said/VBD
group/NN
operating/NN
income/NN
for/IN
the/DT
first/JJ
nine/CD
months/NNS
rose/VBD
15.5/CD
%/NN
to/TO
5.35/CD
billion/CD
kroner/NN
from/IN
4.63/CD
billion/CD
kroner/NN
a/DT
year/NN
earlier/RBR
./.
The/DT
company/NN
said/VBD
operating/NN
profit/NN
for/IN
oil/NN
and/CC
gas/NN
increased/VBD
substantially/RB
,/,
while/IN
operating/NN
profit/NN
for/IN
agriculture/NN
,/,
light/JJ
metals/NNS
and/CC
petrochemicals/NNS
was/VBD
weaker/JJR
than/IN
in/IN
the/DT
same/JJ
period/NN
in/IN
1988/CD
./.
In/IN
the/DT
third/JJ
quarter/NN
,/,
per-share/JJ
earnings/NNS
were/VBD
2.00/CD
kroner/NN
,/,
up/IN
from/IN
1.60/CD
kroner/NN
a/DT
year/NN
earlier/RBR
,/,
but/CC
lower/JJR
than/IN
the/DT
2.30/CD
kroner/NN
to/TO
3.00/CD
kroner/NN
expected/VBN
by/IN
analysts/NNS
./.
Chemical/NNP
Waste/NNP
Management/NNP
has/VBZ
turned/VBN
into/IN
one/CD
of/IN
the/DT
market/NN
's/POS
best-performing/JJ
stocks/NNS
by/IN
advancing/VBG
76/CD
%/NN
in/IN
the/DT
past/NN
year/NN
./.
Its/PRP$
reward/NN
:/:
a/DT
swarm/NN
of/IN
short/JJ
sellers/NNS
./.
Short/JJ
sellers/NNS
are/VBP
backwards/JJ
investors/NNS
:/:
They/PRP
borrow/VBP
stock/NN
and/CC
sell/VBP
it/PRP
,/,
hoping/VBG
the/DT
price/NN
will/MD
go/VB
down/RB
./.
Eventually/RB
the/DT
shorts/NNS
must/MD
``/``
cover/VB
''/''
by/IN
purchasing/VBG
shares/NNS
to/TO
replace/VB
the/DT
borrowed/VBN
ones/NNS
./.
But/CC
if/IN
a/DT
stock/NN
declines/VBZ
enough/RB
in/IN
the/DT
meantime/NN
,/,
they/PRP
profit/VBP
./.
What/WP
with/IN
all/PDT
the/DT
garbage-disposal/JJ
problems/NNS
clogging/VBG
the/DT
headlines/NNS
,/,
it/PRP
's/VBZ
easy/JJ
to/TO
see/VB
why/WRB
the/DT
shares/NNS
of/IN
the/DT
nation/NN
's/POS
largest/JJS
hazardous-waste/NN
concern/NN
have/VBP
zoomed/VBN
ahead/RB
to/TO
yesterday/NN
's/POS
close/NN
of/IN
a/DT
post-split/JJ
22/CD
1\/8/CD
./.
But/CC
the/DT
stock/NN
now/RB
trades/VBZ
at/IN
a/DT
dizzying/JJ
32/CD
times/NNS
the/DT
latest/JJS
12-month/JJ
earnings/NNS
for/IN
the/DT
company/NN
,/,
more/JJR
than/IN
double/VB
the/DT
multiple/NN
of/IN
the/DT
market/NN
as/IN
a/DT
whole/NN
./.
That/IN
handsome/JJ
multiple/JJ
,/,
a/DT
badge/NN
of/IN
success/NN
,/,
is/VBZ
also/RB
a/DT
red/JJ
flag/NN
for/IN
the/DT
shorts/NNS
,/,
who/WP
like/VBP
to/TO
bet/VB
that/IN
a/DT
stock/NN
ca/MD
n't/RB
stay/VB
hot/JJ
forever/RB
./.
Between/IN
Sept./NNP
15/CD
and/CC
Oct./NNP
13/CD
,/,
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
says/VBZ
,/,
the/DT
total/JJ
number/NN
of/IN
Chemical/NNP
Waste/NNP
Management/NNP
shares/NNS
sold/VBN
short/RB
leaped/VBD
to/TO
5.3/CD
million/CD
from/IN
1.9/CD
million/CD
--/:
the/DT
largest/JJS
increase/NN
for/IN
any/DT
stock/NN
on/IN
the/DT
Big/NNP
Board/NNP
./.
The/DT
company/NN
says/VBZ
it/PRP
has/VBZ
n't/RB
any/DT
idea/NN
who/WP
is/VBZ
doing/VBG
the/DT
shorting/NN
or/CC
why/WRB
./.
A/DT
spokesman/NN
said/VBD
he/PRP
ca/MD
n't/RB
comment/VB
further/RB
because/IN
a/DT
stock/NN
offering/NN
is/VBZ
in/IN
progress/NN
./.
The/DT
offering/NN
will/MD
increase/VB
the/DT
public/NN
's/POS
stake/NN
to/TO
23/CD
%/NN
and/CC
decrease/VB
that/IN
of/IN
the/DT
parent/NN
company/NN
,/,
Waste/NNP
Management/NNP
,/,
to/TO
77/CD
%/NN
from/IN
81/CD
%/NN
./.
Money/NN
managers/NNS
and/CC
analysts/NNS
generally/RB
agree/VBP
that/IN
the/DT
stock/NN
has/VBZ
had/VBD
a/DT
huge/JJ
run/NN
and/CC
is/VBZ
now/RB
expensive/JJ
./.
Some/DT
go/VBP
further/RB
and/CC
say/VBP
that/IN
owning/VBG
it/PRP
could/MD
be/VB
.../:
well/UH
,/,
hazardous/JJ
./.
``/``
We/PRP
love/VBP
the/DT
company/NN
,/,
we/PRP
expect/VBP
to/TO
be/VB
owners/NNS
again/RB
,/,
but/CC
we/PRP
think/VBP
for/IN
the/DT
moment/NN
it/PRP
's/VBZ
at/IN
least/JJS
adequately/RB
priced/VBN
,/,
''/''
says/VBZ
Gerald/NNP
Levine/NNP
,/,
a/DT
partner/NN
at/IN
Weiss/NNP
,/,
Peck/NNP
&/CC
Greer/NNP
./.
The/DT
firm/NN
sold/VBD
much/RB
of/IN
its/PRP$
Chemical/NNP
Waste/NNP
holding/NN
earlier/RB
this/DT
year/NN
,/,
government/NN
filings/NNS
show/VBP
./.
Mr./NNP
Levine/NNP
says/VBZ
he/PRP
can/MD
understand/VB
short/JJ
sellers/NNS
'/POS
motivation/NN
./.
``/``
When/WRB
they/PRP
see/VBP
a/DT
stock/NN
extend/VB
on/IN
the/DT
end/NN
of/IN
a/DT
long/JJ
up/JJ
move/NN
,/,
that/WDT
is/VBZ
often/RB
a/DT
sign/NN
the/DT
stock/NN
is/VBZ
going/VBG
to/TO
roll/VB
over/RP
,/,
''/''
he/PRP
says/VBZ
./.
Alliance/NNP
Capital/NNP
Management/NNP
,/,
a/DT
unit/NN
of/IN
Equitable/NNP
Life/NNP
Assurance/NNP
Society/NNP
,/,
has/VBZ
sold/VBN
at/IN
least/JJS
927,000/CD
shares/NNS
this/DT
year/NN
./.
It/PRP
wo/MD
n't/RB
comment/VB
on/IN
the/DT
sales/NNS
./.
Kenneth/NNP
Hackel/NNP
,/,
a/DT
money/NN
manager/NN
who/WP
runs/VBZ
Cash/NNP
Flow/NNP
Investors/NNP
in/IN
Fort/NNP
Lee/NNP
,/,
N.J./NNP
,/,
says/VBZ
Chemical/NNP
Waste/NNP
is/VBZ
``/``
not/RB
my/PRP$
cup/NN
of/IN
tea/NN
./.
''/''
It/PRP
sells/VBZ
for/IN
38/CD
times/NNS
operating/NN
cash/NN
flow/NN
,/,
he/PRP
says/VBZ
,/,
while/IN
the/DT
typical/JJ
industrial/JJ
company/NN
sells/VBZ
for/IN
only/RB
7.7/CD
times/NNS
that/DT
yardstick/NN
./.
Pricey/JJ
though/IN
it/PRP
may/MD
be/VB
,/,
Chemical/NNP
Waste/NNP
still/RB
is/VBZ
a/DT
risky/JJ
short-sale/JJ
candidate/NN
./.
It/PRP
has/VBZ
a/DT
superb/JJ
record/NN
of/IN
earnings/NNS
growth/NN
and/CC
a/DT
strong/JJ
balance/NN
sheet/NN
./.
Citing/VBG
those/DT
attributes/NNS
,/,
several/JJ
well-known/JJ
short/JJ
sellers/NNS
say/VBP
they/PRP
are/VBP
n't/RB
the/DT
ones/NNS
doing/VBG
the/DT
shorting/NN
./.
Shorting/VBG
because/IN
of/IN
a/DT
high/JJ
stock/NN
price/NN
alone/RB
is/VBZ
``/``
a/DT
recipe/NN
for/IN
death/NN
,/,
''/''
said/VBD
Julian/NNP
Robertson/NNP
of/IN
Tiger/NNP
Management/NNP
in/IN
New/NNP
York/NNP
./.
Chemical/NNP
Waste/NNP
Management/NNP
is/VBZ
``/``
not/RB
our/PRP$
kind/NN
of/IN
short/JJ
,/,
''/''
said/VBD
Joe/NNP
Feshbach/NNP
,/,
one/CD
of/IN
the/DT
three/CD
brothers/NNS
who/WP
run/VBP
Feshbach/NNP
Brothers/NNP
,/,
generally/RB
considered/VBN
the/DT
nation/NN
's/POS
largest/JJS
short-selling/JJ
firm/NN
./.
The/DT
company/NN
,/,
he/PRP
said/VBD
,/,
is/VBZ
too/RB
well-capitalized/JJ
to/TO
``/``
go/VB
away/RB
./.
''/''
But/CC
Mr./NNP
Feshbach/NNP
thinks/VBZ
other/JJ
hazardous-waste/NN
companies/NNS
'/POS
stocks/NNS
``/``
could/MD
be/VB
a/DT
fruitful/JJ
area/NN
a/DT
number/NN
of/IN
companies/NNS
have/VBP
reported/VBN
disappointing/JJ
earnings/NNS
''/''
recently/RB
./.
He/PRP
said/VBD
his/PRP$
firm/NN
has/VBZ
shorted/VBN
the/DT
shares/NNS
of/IN
one/CD
small/JJ
company/NN
,/,
which/WDT
he/PRP
would/MD
n't/RB
name/VB
./.
Analysts/NNS
say/VBP
hazardous-waste/NN
companies/NNS
that/WDT
have/VBP
posted/VBN
disappointing/JJ
earnings/NNS
include/VBP
Canonie/NNP
Environmental/NNP
Services/NNP
,/,
Environmental/NNP
Systems/NNP
,/,
Groundwater/NNP
Technology/NNP
,/,
Gundle/NNP
Environmental/NNP
Systems/NNP
and/CC
Rollins/NNP
Environmental/NNP
Services/NNP
./.
But/CC
Chemical/NNP
Waste/NNP
's/POS
earnings/NNS
for/IN
the/DT
third/JJ
quarter/NN
were/VBD
``/``
sparkling/JJ
,/,
''/''
says/VBZ
Kay/NNP
Hahn/NNP
,/,
an/DT
analyst/NN
with/IN
Chicago/NNP
Corp/NNP
./.
She/PRP
recommends/VBZ
the/DT
stock/NN
,/,
and/CC
says/VBZ
short/JJ
sellers/NNS
are/VBP
``/``
taking/VBG
their/PRP$
life/NN
in/IN
their/PRP$
hands/NNS
./.
''/''
Also/RB
bullish/JJ
is/VBZ
Remy/NNP
Fisher/NNP
,/,
a/DT
vice/NN
president/NN
with/IN
J.W./NNP
Seligman/NNP
&/CC
Co./NNP
,/,
a/DT
New/NNP
York/NNP
money-management/NN
firm/NN
that/WDT
has/VBZ
been/VBN
increasing/VBG
its/PRP$
Chemical/NNP
Waste/NNP
shareholdings/NNS
./.
``/``
It/PRP
does/VBZ
n't/RB
seem/VB
like/IN
anything/NN
could/MD
tarnish/VB
{/(
Chemical/NNP
Waste/NNP
's/POS
growth/NN
prospects/NNS
,/,
''/''
she/PRP
says/VBZ
./.
She/PRP
points/VBZ
out/RP
that/IN
Chemical/NNP
Waste/NNP
has/VBZ
about/RB
40/CD
%/NN
of/IN
the/DT
hazardous-waste/NN
industry/NN
's/POS
revenue/NN
,/,
and/CC
that/IN
it/PRP
's/VBZ
hard/JJ
for/IN
new/JJ
firms/NNS
to/TO
enter/VB
the/DT
field/NN
because/IN
of/IN
government/NN
regulations/NNS
and/CC
neighborhood/NN
opposition/NN
to/TO
hazardous-waste/NN
treatment/NN
plants/NNS
./.
Nevertheless/RB
,/,
some/DT
analysts/NNS
expect/VBP
Chemical/NNP
Waste/NNP
's/POS
torrid/JJ
growth/NN
to/TO
slow/VB
a/DT
bit/NN
./.
Earnings/NNS
for/IN
1989/CD
will/MD
be/VB
up/RB
about/RB
30/CD
%/NN
,/,
says/VBZ
Deborah/NNP
Thielsch/NNP
of/IN
First/NNP
Boston/NNP
,/,
compared/VBN
with/IN
34/CD
%/NN
growth/NN
in/IN
1988/CD
./.
For/IN
1990/CD
,/,
she/PRP
expects/VBZ
a/DT
25/CD
%/NN
gain/NN
./.
That/DT
's/VBZ
still/RB
enviable/JJ
growth/NN
,/,
but/CC
Ms./NNP
Thielsch/NNP
is/VBZ
neutral/JJ
on/IN
the/DT
stock/NN
,/,
citing/VBG
its/PRP$
``/``
incredibly/RB
high/JJ
''/''
price-earnings/JJ
ratio/NN
./.
Chemical/NNP
Waste/NNP
Management/NNP
NYSE/NNP
;/:
Symbol/NN
:/:
CHW/NNP
Business/NN
:/:
Hazardous/JJ
waste/NN
management/NN
Year/NN
ended/VBN
Dec./NNP
31/CD
,/,
1988/CD
:/:
Revenue/NN
:/:
$/$
700.2/CD
million/CD
Net/JJ
income/NN
:/:
$/$
116.9/CD
million/CD
;/:
or/CC
58/CD
cents/NNS
a/DT
share/NN
Third/JJ
quarter/NN
,/,
Sept./NNP
30/CD
,/,
1989/CD
:/:
Per-share/JJ
earnings/NNS
:/:
20/CD
cents/NNS
vs./IN
17/CD
cents/NNS
Average/JJ
daily/JJ
trading/NN
volume/NN
:/:
287,209/CD
shares/NNS
Common/JJ
shares/NNS
outstanding/JJ
:/:
200.6/CD
million/CD
Note/VB
:/:
Figures/NNS
adjusted/VBN
to/TO
reflect/VB
2-for-1/JJ
stock/NN
split/NN
paid/VBN
in/IN
October/NNP
1989/CD
./.
Costa/NNP
Rica/NNP
is/VBZ
nearing/VBG
an/DT
agreement/NN
with/IN
its/PRP$
creditors/NNS
on/IN
a/DT
plan/NN
for/IN
restructuring/VBG
$/$
1.8/CD
billion/CD
of/IN
its/PRP$
commercial/JJ
debt/NN
,/,
a/DT
Bank/NNP
of/IN
America/NNP
executive/NN
said/VBD
./.
Costa/NNP
Rica/NNP
is/VBZ
one/CD
of/IN
several/JJ
debtor/JJ
countries/NNS
trying/VBG
to/TO
buy/VB
back/RP
some/DT
of/IN
their/PRP$
loans/NNS
under/IN
a/DT
U.S./NNP
initiative/NN
named/VBN
after/IN
Treasury/NNP
Secretary/NNP
Nicholas/NNP
Brady/NNP
./.
Negotiations/NNS
have/VBP
been/VBN
rushed/VBN
in/IN
order/NN
to/TO
be/VB
completed/VBN
in/IN
time/NN
for/IN
President/NNP
Bush/NNP
's/POS
trip/NN
to/TO
Costa/NNP
Rica/NNP
,/,
and/CC
the/DT
agreement/NN
is/VBZ
likely/JJ
to/TO
be/VB
announced/VBN
today/NN
./.
People/NNS
involved/VBN
in/IN
the/DT
negotiations/NNS
said/VBD
the/DT
accord/NN
will/MD
reduce/VB
Costa/NNP
Rica/NNP
's/POS
foreign/JJ
debt/NN
principal/NN
by/IN
more/JJR
than/IN
60/CD
%/NN
./.
``/``
We/PRP
are/VBP
reasonably/RB
close/RB
to/TO
an/DT
agreement/NN
on/IN
a/DT
Brady-type/JJ
plan/NN
for/IN
Costa/NNP
Rica/NNP
,/,
''/''
said/VBD
Peter/NNP
McPherson/NNP
,/,
Bank/NNP
of/IN
America/NNP
's/POS
executive/JJ
vice/NN
president/NN
./.
His/PRP$
comments/NNS
were/VBD
the/DT
first/JJ
signs/NNS
of/IN
an/DT
imminent/JJ
breakthrough/NN
in/IN
negotiations/NNS
between/IN
Costa/NNP
Rica/NNP
and/CC
its/PRP$
commercial/JJ
lenders/NNS
./.
Bank/NNP
of/IN
America/NNP
,/,
which/WDT
chairs/VBZ
a/DT
committee/NN
representing/VBG
Costa/NNP
Rica/NNP
's/POS
creditors/NNS
,/,
said/VBD
the/DT
prospective/JJ
plan/NN
would/MD
enable/VB
the/DT
country/NN
to/TO
buy/VB
back/RP
about/RB
$/$
1/CD
billion/CD
of/IN
debt/NN
at/IN
a/DT
``/``
substantial/JJ
discount/NN
./.
''/''
The/DT
repurchase/NN
is/VBZ
to/TO
be/VB
financed/VBN
by/IN
fresh/JJ
credits/NNS
from/IN
the/DT
International/NNP
Monetary/NNP
Fund/NNP
,/,
the/DT
World/NNP
Bank/NNP
and/CC
donor/NN
governments/NNS
./.
Costa/NNP
Rica/NNP
also/RB
would/MD
be/VB
able/JJ
to/TO
pay/VB
overdue/JJ
interest/NN
on/IN
its/PRP$
still-outstanding/JJ
loans/NNS
at/IN
``/``
more/JJR
favorable/JJ
terms/NNS
''/''
than/IN
regular/JJ
debtors/NNS
,/,
other/JJ
U.S./NNP
bankers/NNS
said/VBD
./.
Assets/NNS
of/IN
the/DT
nation/NN
's/POS
476/CD
money/NN
market/NN
funds/NNS
rose/VBD
$/$
1.26/CD
billion/CD
to/TO
$/$
357.49/CD
billion/CD
in/IN
the/DT
week/NN
ended/VBN
Wednesday/NNP
./.
The/DT
Investment/NNP
Company/NNP
Institute/NNP
,/,
a/DT
Washington-based/JJ
trade/NN
group/NN
,/,
said/VBD
assets/NNS
of/IN
236/CD
general-purpose/JJ
funds/NNS
rose/VBD
$/$
300.1/CD
million/CD
to/TO
$/$
116.91/CD
billion/CD
;/:
assets/NNS
of/IN
96/CD
broker-dealer/JJ
funds/NNS
rose/VBD
$/$
1.72/CD
billion/CD
to/TO
$/$
155.76/CD
billion/CD
;/:
and/CC
assets/NNS
of/IN
144/CD
institutional/JJ
funds/NNS
fell/VBD
$/$
751.4/CD
million/CD
to/TO
$/$
84.82/CD
billion/CD
./.
``/``
The/DT
movements/NNS
in/IN
assets/NNS
differed/VBD
markedly/RB
across/IN
fund/NN
categories/NNS
,/,
''/''
said/VBD
Jacob/NNP
Dreyer/NNP
,/,
vice/NN
president/NN
and/CC
chief/JJ
economist/NN
for/IN
the/DT
institute/NN
./.
Money/NN
market/NN
funds/NNS
were/VBD
offering/VBG
lower/JJR
yields/NNS
,/,
but/CC
individuals/NNS
nonetheless/RB
``/``
kept/VBN
adding/VBG
money/NN
to/TO
their/PRP$
account/NN
balances/NNS
,/,
''/''
Mr./NNP
Dreyer/NNP
said/VBD
./.
Most/JJS
of/IN
the/DT
money/NN
flowed/VBD
into/IN
funds/NNS
in/IN
the/DT
broker-dealer/JJ
category/NN
,/,
he/PRP
said/VBD
,/,
suggesting/VBG
that/IN
investors/NNS
liquidated/VBD
some/DT
equity/NN
holdings/NNS
because/IN
of/IN
recent/JJ
turbulence/NN
in/IN
the/DT
stock/NN
market/NN
./.
``/``
By/IN
contrast/NN
,/,
assets/NNS
of/IN
institutional/JJ
funds/NNS
actually/RB
declined/VBD
as/IN
money/NN
managers/NNS
,/,
anticipating/VBG
further/RB
easing/NN
of/IN
yields/NNS
,/,
moved/VBD
into/IN
direct/JJ
money-market/JJ
instruments/NNS
of/IN
slightly/RB
longer/JJR
maturities/NNS
and/CC
intermediate-term/JJ
bonds/NNS
,/,
''/''
Mr./NNP
Dreyer/NNP
said/VBD
./.
A/DT
study/NN
of/IN
patients/NNS
in/IN
eight/CD
Public/NNP
Health/NNP
Service/NNP
hospitals/NNS
found/VBD
that/IN
cancer-related/JJ
deaths/NNS
among/IN
seamen/NNS
were/VBD
significantly/RB
higher/JJR
than/IN
among/IN
other/JJ
patients/NNS
./.
The/DT
research/NN
,/,
recently/RB
presented/VBN
at/IN
a/DT
scientific/JJ
conference/NN
in/IN
Italy/NNP
,/,
was/VBD
conducted/VBN
by/IN
the/DT
U.S./NNP
Public/NNP
Health/NNP
Service/NNP
Hospital/NNP
in/IN
Staten/NNP
Island/NNP
,/,
N.Y/NNP
./.
The/DT
study/NN
was/VBD
prompted/VBN
by/IN
a/DT
previous/JJ
finding/NN
of/IN
a/DT
similar/JJ
mortality/NN
pattern/NN
among/IN
American/JJ
merchant/NN
seamen/NNS
who/WP
died/VBD
in/IN
that/DT
hospital/NN
in/IN
1975/CD
and/CC
1976/CD
./.
The/DT
latest/JJS
report/NN
,/,
the/DT
first/JJ
of/IN
several/JJ
planned/VBN
,/,
did/VBD
n't/RB
draw/VB
any/DT
direct/JJ
link/NN
between/IN
the/DT
cancer/NN
death/NN
rate/NN
among/IN
seamen/NNS
and/CC
asbestos/NN
used/VBN
in/IN
ships/NNS
as/IN
fire/NN
retardants/NNS
and/CC
insulation/NN
./.
But/CC
Leonard/NNP
Jaques/NNP
,/,
an/DT
admiralty/NN
attorney/NN
who/WP
handles/VBZ
asbestos-related/JJ
cases/NNS
for/IN
seamen/NNS
and/CC
who/WP
provided/VBD
his/PRP$
clients/NNS
'/POS
records/NNS
for/IN
the/DT
research/NN
,/,
said/VBD
``/``
the/DT
connection/NN
was/VBD
a/DT
natural/JJ
presumption/NN
./.
''/''
The/DT
researchers/NNS
compared/VBD
deaths/NNS
between/IN
1973/CD
and/CC
1978/CD
at/IN
the/DT
Staten/NNP
Island/NNP
hospital/NN
with/IN
that/DT
of/IN
the/DT
eight/CD
public/JJ
health/NN
hospitals/NNS
for/IN
the/DT
same/JJ
period/NN
./.
The/DT
group/NN
found/VBD
that/IN
at/IN
the/DT
Staten/NNP
Island/NNP
facility/NN
,/,
cancer/NN
was/VBD
the/DT
cause/NN
of/IN
death/NN
in/IN
55/CD
%/NN
of/IN
the/DT
seamen/NNS
,/,
compared/VBN
with/IN
28/CD
%/NN
among/IN
non-seamen/NNS
;/:
respiratory/JJ
cancer/NN
accounted/VBD
for/IN
one/CD
in/IN
five/CD
deaths/NNS
among/IN
seamen/NNS
,/,
compared/VBN
with/IN
one/CD
in/IN
12/CD
among/IN
non-seamen/NNS
./.
The/DT
data/NNS
collected/VBN
from/IN
the/DT
eight/CD
other/JJ
hospitals/NNS
showed/VBD
that/DT
cancer/NN
was/VBD
responsible/JJ
for/IN
46/CD
%/NN
of/IN
seamen/NNS
deaths/NNS
,/,
compared/VBN
with/IN
37/CD
%/NN
among/IN
non-seamen/NNS
./.
Respiratory/JJ
cancer/NN
accounted/VBD
for/IN
one/CD
in/IN
five/CD
seamen/NNS
deaths/NNS
versus/IN
one/CD
in/IN
eleven/CD
for/IN
non-seamen/NNS
./.
``/``
The/DT
cancer/NN
mortality/NN
`/``
excess/NN
,/,
'/''
particularly/RB
respiratory/JJ
cancer/NN
,/,
is/VBZ
not/RB
specific/JJ
to/TO
the/DT
Staten/NNP
Island/NNP
facility/NN
,/,
but/CC
is/VBZ
characteristic/JJ
of/IN
the/DT
Public/NNP
Health/NNP
Service/NNP
Hospital/NNP
System/NNP
as/IN
a/DT
whole/NN
,/,
''/''
the/DT
report/NN
concluded/VBD
./.
The/DT
research/NN
group/NN
was/VBD
headed/VBN
by/IN
Dr./NNP
Howard/NNP
R./NNP
Kelman/NNP
,/,
chief/NN
of/IN
health/NN
services/NNS
research/NN
at/IN
the/DT
Staten/NNP
Island/NNP
hospital/NN
./.
GORBACHEV/NNP
ANNOUNCED/VBD
unilateral/JJ
cuts/NNS
of/IN
nuclear/JJ
arms/NNS
in/IN
the/DT
Baltic/JJ
region/NN
./.
The/DT
Kremlin/NNP
leader/NN
unveiled/VBD
a/DT
plan/NN
to/TO
reduce/VB
nuclear/JJ
weapons/NNS
in/IN
the/DT
Baltic/NNP
Sea/NNP
,/,
including/VBG
the/DT
scrapping/NN
of/IN
Moscow/NNP
's/POS
nuclear-armed/JJ
submarines/NNS
by/IN
1991/CD
./.
Gorbachev/NNP
,/,
on/IN
an/DT
official/JJ
visit/NN
to/TO
Finland/NNP
,/,
also/RB
said/VBD
the/DT
Soviet/NNP
Union/NNP
has/VBZ
removed/VBN
all/DT
tactical/JJ
nuclear/JJ
missiles/NNS
that/WDT
could/MD
strike/VB
northern/JJ
Europe/NNP
./.
In/IN
Moscow/NNP
,/,
leading/JJ
progressives/NNS
have/VBP
drafted/VBN
a/DT
blueprint/NN
designed/VBN
to/TO
push/VB
the/DT
nation/NN
closer/RBR
to/TO
a/DT
free-market/JJ
system/NN
./.
The/DT
plan/NN
includes/VBZ
liberalizing/VBG
the/DT
system/NN
of/IN
prices/NNS
,/,
breaking/VBG
up/RP
industrial/JJ
monopolies/NNS
and/CC
putting/VBG
unprofitable/JJ
state-owned/JJ
companies/NNS
out/IN
of/IN
business/NN
./.
The/DT
U.S./NNP
signaled/VBD
the/DT
Soviet/NNP
Union/NNP
that/IN
it/PRP
is/VBZ
willing/JJ
to/TO
discuss/VB
an/DT
offer/NN
by/IN
Foreign/NNP
Minister/NNP
Shevardnadze/NNP
to/TO
curtail/VB
military/JJ
bases/NNS
in/IN
Europe/NNP
./.
LAWSON/NNP
RESIGNED/VBD
as/IN
Britain/NNP
's/POS
finance/NN
minister/NN
amid/IN
a/DT
policy/NN
dispute/NN
./.
In/IN
a/DT
letter/NN
to/TO
Prime/NNP
Minister/NNP
Thatcher/NNP
,/,
the/DT
chancellor/NN
of/IN
the/DT
exchequer/NN
said/VBD
he/PRP
was/VBD
leaving/VBG
his/PRP$
cabinet/NN
post/NN
because/IN
``/``
the/DT
successful/JJ
conduct/NN
of/IN
economic/JJ
policy/NN
''/''
was/VBD
n't/RB
possible/JJ
so/RB
long/RB
as/IN
Sir/NNP
Alan/NNP
Walters/NNP
remained/VBD
as/IN
her/PRP$
economic/JJ
adviser/NN
./.
Sir/NNP
Alan/NNP
,/,
however/RB
,/,
also/RB
quit/VBD
./.
Thatcher/NNP
named/VBD
Foreign/NNP
Secretary/NNP
Major/NNP
to/TO
succeed/VB
Lawson/NNP
,/,
and/CC
Home/NNP
Secretary/NNP
Hurd/NNP
was/VBD
appointed/VBN
foreign/JJ
minister/NN
./.
Sir/NNP
Geoffrey/NNP
Howe/NNP
,/,
deputy/JJ
prime/JJ
minister/NN
,/,
said/VBD
in/IN
the/DT
House/NNP
of/IN
Commons/NNP
that/IN
London/NNP
's/POS
economic/JJ
and/CC
monetary/JJ
policies/NNS
would/MD
remain/VB
``/``
unchanged/JJ
./.
''/''
An/DT
East/JJ
German/JJ
Politburo/NNP
member/NN
met/VBD
with/IN
opposition/NN
leaders/NNS
in/IN
East/NNP
Berlin/NNP
for/IN
what/WP
were/VBD
considered/VBN
the/DT
first/JJ
substantive/JJ
talks/NNS
on/IN
demands/NNS
for/IN
Western/JJ
freedoms/NNS
./.
Communist/JJ
authorities/NNS
urged/VBD
pro-democracy/JJ
activists/NNS
to/TO
halt/VB
protests/NNS
for/IN
internal/JJ
changes/NNS
,/,
but/CC
about/RB
100,000/CD
people/NNS
in/IN
Dresden/NN
ignored/VBD
the/DT
appeal/NN
and/CC
staged/VBD
a/DT
rally/NN
./.
South/NNP
Africa/NNP
has/VBZ
test-fired/VBN
an/DT
intermediate-range/JJ
ballistic/JJ
missile/NN
that/WDT
could/MD
carry/VB
nuclear/JJ
warheads/NNS
and/CC
was/VBD
built/VBN
with/IN
help/NN
from/IN
Israel/NNP
,/,
a/DT
U.S./NNP
official/NN
said/VBD
./.
The/DT
aide/NN
said/VBD
Israel/NNP
and/CC
South/NNP
Africa/NNP
also/RB
are/VBP
cooperating/VBG
on/IN
the/DT
development/NN
of/IN
a/DT
long-range/JJ
missile/NN
./.
Premier/NNP
Shamir/NNP
denied/VBD
that/IN
Israel/NNP
provided/VBD
any/DT
technology/NN
to/TO
Pretoria/NNP
./.
The/DT
White/NNP
House/NNP
has/VBZ
reached/VBN
an/DT
accord/NN
with/IN
the/DT
Senate/NNP
Intelligence/NNP
Committee/NNP
on/IN
new/JJ
rules/NNS
for/IN
covert/JJ
operations/NNS
to/TO
give/VB
Bush/NNP
a/DT
freer/JJR
hand/NN
to/TO
involve/VB
the/DT
U.S./NNP
in/IN
foreign/JJ
coup/NN
plots/NNS
./.
The/DT
panel/NN
agreed/VBD
to/TO
rescind/VB
Reagan-era/JJ
curbs/NNS
and/CC
give/VB
U.S./NNP
agents/NNS
wide/JJ
latitude/NN
to/TO
join/VB
coup/NN
planning/NN
,/,
officials/NNS
said/VBD
./.
Bush/NNP
extended/VBD
most-favored-nation/JJ
trade/NN
privileges/NNS
to/TO
Hungary/NNP
,/,
saying/VBG
it/PRP
had/VBD
honored/VBN
its/PRP$
pledge/NN
of/IN
political/JJ
and/CC
economic/JJ
restructuring/NN
./.
The/DT
president/NN
's/POS
move/NN
,/,
which/WDT
came/VBD
three/CD
days/NNS
after/IN
Budapest/JJS
declared/VBD
itself/PRP
a/DT
democracy/NN
,/,
made/VBD
Hungary/NNP
the/DT
first/JJ
country/NN
to/TO
be/VB
freed/VBN
from/IN
a/DT
1974/CD
law/NN
denying/VBG
U.S./NNP
trade/NN
credits/NNS
to/TO
most/JJS
communist/JJ
nations/NNS
./.
House-Senate/NNP
negotiators/NNS
cleared/VBD
a/DT
$/$
3.18/CD
billion/CD
anti-drug/JJ
and/CC
anti-crime/JJ
initiative/NN
,/,
trimming/VBG
domestic/JJ
and/CC
defense/NN
spending/NN
to/TO
pay/VB
for/IN
it/PRP
./.
The/DT
package/NN
would/MD
put/VB
more/JJR
emphasis/NN
on/IN
treatment/NN
,/,
education/NN
and/CC
prevention/NN
programs/NNS
favored/VBN
by/IN
Democrats/NNP
than/IN
Bush/NNP
's/POS
smaller/JJR
plan/NN
./.
San/NNP
Francisco/NNP
Bay/NNP
area/NN
officials/NNS
urged/VBD
residents/NNS
of/IN
tent/NN
cities/NNS
in/IN
the/DT
agricultural/JJ
community/NN
of/IN
Watsonville/NNP
to/TO
move/VB
to/TO
shelters/NNS
,/,
expressing/VBG
concern/NN
over/IN
health/NN
and/CC
safety/NN
dangers/NNS
from/IN
unrefrigerated/JJ
food/NN
and/CC
open/JJ
cooking/NN
fires/NNS
./.
Tolls/NNS
on/IN
bridges/NNS
went/VBD
back/RB
into/IN
effect/NN
,/,
and/CC
traffic/NN
officers/NNS
resumed/VBD
issuing/VBG
tickets/NNS
in/IN
the/DT
region/NN
./.
The/DT
U.N./NNP
announced/VBD
that/IN
its/PRP$
high/JJ
commissioner/NN
for/IN
refugees/NNS
,/,
Jean-Pierre/NNP
Hocke/NNP
,/,
resigned/VBD
amid/IN
allegations/NNS
of/IN
financial/JJ
impropriety/NN
,/,
mismanagement/NN
and/CC
favoritism/NN
to/TO
Western/JJ
donor/NN
nations/NNS
./.
The/DT
51-year-old/JJ
Swiss/NNP
's/POS
resignation/NN
is/VBZ
effective/JJ
Wednesday/NNP
./.
A/DT
China/NNP
Airlines/NNP
jetliner/NN
crashed/VBD
into/IN
a/DT
mountainside/NN
in/IN
eastern/JJ
Taiwan/NNP
and/CC
all/DT
54/CD
people/NNS
aboard/RB
,/,
including/VBG
at/IN
least/JJS
one/CD
American/NNP
,/,
were/VBD
believed/VBN
killed/VBN
./.
The/DT
incident/NN
occurred/VBD
shortly/RB
after/IN
the/DT
Taiwanese/JJ
plane/NN
took/VBD
off/RP
from/IN
Hualien/NNP
,/,
enroute/RB
to/TO
Taipei/NNP
./.
Former/NNP
HUD/NNP
chief/NN
Pierce/VB
informed/VBD
a/DT
House/NNP
subcommittee/NN
that/IN
he/PRP
will/MD
again/RB
refuse/VB
to/TO
answer/VB
its/PRP$
questions/NNS
about/IN
mismanagement/NN
and/CC
political/JJ
favoritism/NN
at/IN
the/DT
department/NN
he/PRP
led/VBD
for/IN
eight/CD
years/NNS
under/IN
Reagan/NNP
./.
He/PRP
refused/VBD
to/TO
testify/VB
last/JJ
month/NN
,/,
invoking/VBG
his/PRP$
right/NN
against/IN
self-incrimination/NN
./.
Bush/NNP
is/VBZ
scheduled/VBN
to/TO
travel/VB
to/TO
Costa/NNP
Rica/NNP
today/NN
to/TO
participate/VB
in/IN
the/DT
Central/JJ
American/JJ
nation/NN
's/POS
celebration/NN
of/IN
100/CD
years/NNS
of/IN
democracy/NN
./.
The/DT
president/NN
has/VBZ
ruled/VBN
out/RP
any/DT
talks/NNS
with/IN
Nicaragua/NNP
's/POS
Ortega/NNP
during/IN
the/DT
two-day/JJ
gathering/NN
,/,
where/WRB
leaders/NNS
of/IN
18/CD
nations/NNS
are/VBP
expected/VBN
to/TO
discuss/VB
regional/JJ
issues/NNS
./.
Christian/NNP
and/CC
Moslem/NNP
forces/NNS
traded/VBD
artillery/NN
fire/NN
across/IN
Beirut/NNP
's/POS
sectarian/JJ
dividing/VBG|NN|JJ
line/NN
,/,
the/DT
first/JJ
major/JJ
breach/NN
of/IN
an/DT
Arab-sponsored/JJ
cease-fire/NN
that/WDT
began/VBD
about/RB
a/DT
month/NN
ago/RB
./.
An/DT
Arab/NNP
League/NNP
envoy/NN
,/,
meanwhile/RB
,/,
traveled/VBD
to/TO
Beirut/NNP
from/IN
Damascus/NNP
to/TO
help/VB
arrange/VB
a/DT
meeting/NN
of/IN
Lebanon/NNP
's/POS
lawmakers/NNS
to/TO
choose/VB
a/DT
new/JJ
head/NN
of/IN
state/NN
./.
Pakistan/NNP
's/POS
opposition/NN
introduced/VBD
a/DT
noconfidence/JJ
motion/NN
in/IN
Islamabad/NNP
's/POS
Parliament/NNP
./.
Prime/NNP
Minister/NNP
Bhutto/NNP
predicted/VBD
that/IN
the/DT
move/NN
to/TO
oust/VB
her/PRP
would/MD
be/VB
defeated/VBN
./.
The/DT
U.S./NNP
,/,
meanwhile/RB
,/,
has/VBZ
told/VBN
the/DT
opposition/NN
parties/NNS
that/IN
any/DT
change/NN
in/IN
government/NN
must/MD
be/VB
accomplished/VBN
without/IN
compromising/VBG
the/DT
country/NN
's/POS
fledgling/JJ
democracy/NN
./.
A/DT
Chinese/JJ
government/NN
spokesman/NN
said/VBD
martial/JJ
law/NN
,/,
entering/VBG
its/PRP$
sixth/JJ
month/NN
in/IN
Beijing/NNP
,/,
will/MD
be/VB
lifted/VBN
soon/RB
./.
The/DT
spokesman/NN
,/,
quoted/VBN
in/IN
the/DT
People/NNS
's/POS
Daily/JJ
newspaper/NN
,/,
did/VBD
n't/RB
offer/VB
a/DT
timetable/NN
./.
Premier/NNP
Li/NNP
Peng/NNP
declared/VBD
martial/JJ
law/NN
May/NNP
20/CD
amid/IN
studentled/VBN
pro-democracy/JJ
protests/NNS
./.
National/NNP
Football/NNP
League/NNP
owners/NNS
elected/VBD
lawyer/NN
Paul/NNP
Tagliabue/NNP
as/IN
commissioner/NN
,/,
succeeding/VBG
Pete/NNP
Rozelle/NNP
,/,
who/WP
announced/VBD
his/PRP$
retirement/NN
in/IN
March/NNP
after/IN
30/CD
years/NNS
in/IN
the/DT
post/NN
./.
The/DT
48-year-old/JJ
Tagliabue/NNP
,/,
an/DT
NFL/NNP
counsel/NN
,/,
is/VBZ
to/TO
serve/VB
a/DT
five-year/JJ
term/NN
./.
its/PRP$
centennial/NN
year/NN
,/,
The/DT
Wall/NNP
Street/NNP
Journal/NNP
will/MD
report/VB
events/NNS
of/IN
the/DT
past/JJ
century/NN
that/DT
stand/NN
as/IN
milestones/NNS
of/IN
American/JJ
business/NN
history/NN
./.
REAL/JJ
ESTATE/NN
INVESTMENT/NN
TRUSTS/NNS
,/,
or/CC
REITs/NNS
,/,
were/VBD
the/DT
darlings/NNS
of/IN
investors/NNS
in/IN
the/DT
1960s/CD
./.
But/CC
they/PRP
started/VBD
to/TO
fall/VB
on/IN
hard/JJ
times/NNS
in/IN
1974/CD
./.
These/DT
pooled/JJ
investments/NNS
in/IN
trusts/NNS
,/,
which/WDT
drew/VBD
income/NN
from/IN
owned/VBN
properties/NNS
or/CC
from/IN
interest/NN
on/IN
mortgages/NNS
,/,
were/VBD
hit/VBN
by/IN
the/DT
real/JJ
estate/NN
doldrums/NNS
of/IN
that/DT
year/NN
./.
Overbuilding/NN
,/,
inflation/NN
,/,
high/JJ
interest/NN
and/CC
materials/NNS
costs/NNS
,/,
mortgage/NN
defaults/NNS
and/CC
some/DT
questionable/JJ
lending/NN
practices/NNS
combined/VBD
to/TO
hurt/VB
REITs/NNS
./.
Cash-pressed/JJ
,/,
REITs/NNS
in/IN
1974/CD
began/VBD
to/TO
sell/VB
out/RP
at/IN
bargain/NN
prices/NNS
,/,
merge/VB
with/IN
stronger/JJR
ones/NNS
,/,
omit/VB
dividends/NNS
and/CC
even/RB
fail/VB
./.
That/DT
year/NN
19/CD
of/IN
the/DT
20/CD
biggest/JJS
losers/NNS
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
were/VBD
REITs/NNS
;/:
as/RB
much/RB
as/IN
96/CD
%/NN
of/IN
their/PRP$
market/NN
value/NN
was/VBD
wiped/VBN
out/RP
./.
In/IN
their/PRP$
heyday/NN
,/,
after/IN
their/PRP$
debut/NN
with/IN
federal/JJ
blessing/NN
in/IN
1960/CD
as/IN
a/DT
spur/NN
for/IN
real-estate/NN
investments/NNS
,/,
they/PRP
were/VBD
popular/JJ
because/IN
they/PRP
had/VBD
tax-free/JJ
status/NN
if/IN
they/PRP
paid/VBD
90/CD
%/NN
95/CD
%/NN
their/PRP$
profits/NNS
to/TO
shareholders/NNS
./.
``/``
The/DT
outlook/NN
for/IN
the/DT
industry/NN
is/VBZ
grim/JJ
,/,
''/''
said/VBD
Howard/NNP
Foster/NNP
,/,
an/DT
E.F./NNP
Hutton/NNP
analyst/NN
,/,
in/IN
January/NNP
1974/CD
./.
He/PRP
predicted/VBD
that/IN
the/DT
number/NN
of/IN
REITs/NNS
would/MD
plunge/VB
to/TO
50/CD
from/IN
207/CD
./.
Some/DT
did/VBD
fail/VB
within/IN
a/DT
few/JJ
years/NNS
,/,
but/CC
there/EX
are/VBP
169/CD
today/NN
./.
Since/IN
the/DT
real-estate/NN
recovery/NN
in/IN
the/DT
early/JJ
1980s/CD
,/,
REITs/NNS
'/POS
assets/NNS
have/VBP
risen/VBN
steadily/RB
to/TO
about/RB
$/$
41/CD
billion/CD
currently/RB
from/IN
a/DT
record/JJ
$/$
40.6/CD
billion/CD
last/JJ
year/NN
and/CC
$/$
7/CD
billion/CD
in/IN
1980/CD
./.
In/IN
1974/CD
,/,
the/DT
figure/NN
was/VBD
$/$
21.2/CD
billion/CD
./.
Avon/NNP
Products/NNP
Inc./NNP
posted/VBD
a/DT
third-quarter/JJ
profit/NN
of/IN
$/$
34.6/CD
million/CD
,/,
reversing/VBG
a/DT
year-earlier/JJ
loss/NN
./.
The/DT
cosmetics/NNS
,/,
jewelry/NN
and/CC
gift/NN
products/NNS
concern/NN
had/VBD
per-share/JJ
earnings/NNS
of/IN
46/CD
cents/NNS
in/IN
the/DT
latest/JJS
quarter/NN
./.
A/DT
year/NN
earlier/RBR
,/,
it/PRP
reported/VBD
a/DT
loss/NN
of/IN
$/$
405.9/CD
million/CD
,/,
or/CC
$/$
7.78/CD
a/DT
share/NN
,/,
due/JJ
to/TO
a/DT
one-time/JJ
$/$
425/CD
million/CD
charge/NN
for/IN
discontinued/VBN
operations/NNS
./.
Sales/NNS
rose/VBD
8/CD
%/NN
to/TO
$/$
785.1/CD
million/CD
from/IN
$/$
725.6/CD
million/CD
./.
Avon/NNP
said/VBD
sales/NNS
in/IN
the/DT
direct-selling/JJ
division/NN
dropped/VBD
2/CD
%/NN
as/IN
sales/NNS
of/IN
new/JJ
products/NNS
,/,
especially/RB
gift/NN
and/CC
jewelry/NN
lines/NNS
,/,
were/VBD
below/IN
expectations/NNS
./.
The/DT
weak/JJ
sales/NNS
are/VBP
expected/VBN
to/TO
continue/VB
into/IN
the/DT
fourth/JJ
quarter/NN
,/,
Avon/NNP
added/VBD
./.
``/``
Third-quarter/JJ
net/NN
was/VBD
on/IN
target/NN
with/IN
expectations/NNS
,/,
''/''
said/VBD
Andrew/NNP
Shore/NNP
,/,
an/DT
analyst/NN
at/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc/NNP
./.
But/CC
the/DT
third/JJ
quarter/NN
is/VBZ
n't/RB
the/DT
problem/NN
,/,
Mr./NNP
Shore/NNP
added/VBD
./.
``/``
It/PRP
's/VBZ
the/DT
fourth/JJ
quarter/NN
and/CC
what/WP
might/MD
linger/VB
beyond/IN
that/DT
./.
''/''
Last/JJ
month/NN
,/,
Avon/NN
executives/NNS
indicated/VBD
that/IN
the/DT
company/NN
would/MD
experience/VB
a/DT
$/$
75/CD
million/CD
to/TO
$/$
90/CD
million/CD
revenue/NN
shortage/NN
due/JJ
to/TO
weakness/NN
in/IN
its/PRP$
gift/NN
and/CC
decorative/JJ
lines/NNS
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
Avon/NNP
closed/VBD
at/IN
$/$
26.875/CD
,/,
down/RB
87.5/CD
cents/NNS
./.
The/DT
company/NN
's/POS
retail/JJ
prestige/JJ
fragrance/NN
division/NN
,/,
which/WDT
includes/VBZ
Giorgio/NNP
Beverly/NNP
Hills/NNP
and/CC
Parfums/NNP
Stern/NNP
,/,
posted/VBD
35/CD
%/NN
higher/JJR
sales/NNS
./.
Earlier/RBR
this/DT
month/NN
,/,
Avon/NNP
said/VBD
it/PRP
agreed/VBD
to/TO
sell/VB
its/PRP$
Valentino/NNP
fragrance/NN
business/NN
and/CC
the/DT
inventory/NN
of/IN
its/PRP$
Parfums/NNP
Stern/NNP
unit/NN
to/TO
Italy/NNP
's/POS
Valentino/NNP
Group/NNP
for/IN
about/RB
$/$
12.3/CD
million/CD
in/IN
cash/NN
and/CC
notes/NNS
./.
In/IN
the/DT
nine/CD
months/NNS
,/,
Avon/NNP
earned/VBD
$/$
80.3/CD
million/CD
,/,
or/CC
97/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
a/DT
net/JJ
loss/NN
of/IN
$/$
461.1/CD
million/CD
,/,
or/CC
$/$
7.20/CD
a/DT
share/NN
./.
Revenue/NN
rose/VBD
11/CD
%/NN
to/TO
$/$
2.27/CD
billion/CD
from/IN
$/$
2.05/CD
billion/CD
./.
THE/DT
U.S./NNP
ECONOMY/NN
GREW/VBD
at/IN
a/DT
moderate/JJ
2.5/CD
%/NN
annual/JJ
rate/NN
in/IN
the/DT
third/JJ
quarter/NN
despite/IN
the/DT
worst/JJS
trade/NN
performance/NN
in/IN
six/CD
years/NNS
./.
The/DT
expansion/NN
,/,
matching/VBG
the/DT
second/JJ
quarter/NN
's/POS
pace/NN
,/,
was/VBD
fueled/VBN
by/IN
strong/JJ
consumer/NN
spending/NN
,/,
especially/RB
for/IN
autos/NNS
./.
But/CC
analysts/NNS
expect/VBP
GNP/NNP
growth/NN
to/TO
slow/VB
in/IN
the/DT
current/JJ
quarter/NN
./.
An/DT
inflation/NN
gauge/NN
slowed/VBD
to/TO
a/DT
2.9/CD
%/NN
growth/NN
rate/NN
from/IN
5/CD
%/NN
the/DT
previous/JJ
quarter/NN
./.
The/DT
Big/NNP
Three/CD
car/NN
makers/NNS
all/DT
posted/VBD
quarterly/JJ
losses/NNS
in/IN
core/JJ
North/JJ
American/JJ
auto/NN
operations/NNS
for/IN
the/DT
first/JJ
time/NN
since/IN
1982/CD
./.
Expectations/NNS
of/IN
slow/JJ
sales/NNS
and/CC
price/NN
wars/NNS
are/VBP
dimming/VBG
the/DT
outlook/NN
for/IN
the/DT
current/JJ
quarter/NN
./.
GM/NNP
is/VBZ
seeking/VBG
to/TO
buy/VB
up/IN
to/TO
15/CD
%/NN
of/IN
Jaguar/NNP
,/,
marking/VBG
its/PRP$
first/JJ
salvo/NN
in/IN
a/DT
looming/VBG
battle/NN
with/IN
Ford/NNP
for/IN
control/NN
of/IN
the/DT
British/JJ
luxury/NN
car/NN
maker/NN
./.
Stock/NN
prices/NNS
tumbled/VBD
amid/IN
growing/VBG
concern/NN
about/IN
corporate/JJ
earnings/NNS
./.
The/DT
Dow/NNP
Jones/NNP
industrials/NNS
closed/VBD
off/RB
39.55/CD
points/NNS
,/,
at/IN
2613.73/CD
./.
Most/JJS
bonds/NNS
eased/VBD
,/,
but/CC
long-term/JJ
Treasury/NNP
issues/NNS
edged/VBD
up/RB
./.
The/DT
dollar/NN
also/RB
gained/VBD
,/,
especially/RB
against/IN
the/DT
British/JJ
pound/NN
./.
PaineWebber/NNP
Group/NNP
ordered/VBD
a/DT
major/JJ
pullback/NN
from/IN
program/NN
trading/NN
amid/IN
mounting/VBG
debate/NN
about/IN
the/DT
practice/NN
at/IN
Wall/NNP
Street/NNP
firms/NNS
./.
AT*/NNP&T/NN
was/VBD
allowed/VBN
by/IN
the/DT
FCC/NNP
to/TO
continue/VB
offering/VBG
discount/JJ
phone/NN
services/NNS
to/TO
big-business/NN
clients/NNS
./.
The/DT
agency/NN
also/RB
plans/VBZ
to/TO
review/VB
its/PRP$
regulation/NN
of/IN
the/DT
long-distance/JJ
market/NN
./.
A/DT
capital-gains/NNS
tax/NN
cut/NN
has/VBZ
stalled/VBN
in/IN
the/DT
Senate/NNP
./.
Democratic/JJ
leaders/NNS
have/VBP
bottled/VBN
up/RP
the/DT
plan/NN
and/CC
may/MD
be/VB
able/JJ
to/TO
prevent/VB
a/DT
vote/NN
indefinitely/RB
./.
Treasury/NNP
Secretary/NNP
Brady/NNP
said/VBD
the/DT
SEC/NNP
should/MD
be/VB
given/VBN
the/DT
authority/NN
to/TO
close/VB
the/DT
stock/NN
markets/NNS
in/IN
a/DT
crisis/NN
./.
Earlier/RB
,/,
SEC/NNP
Chairman/NNP
Breeden/NNP
said/VBD
he/PRP
does/VBZ
n't/RB
want/VB
such/JJ
power/NN
because/IN
it/PRP
could/MD
end/VB
up/RP
disrupting/VBG
the/DT
markets/NNS
./.
Regional/JJ
thrift/NN
regulators/NNS
claimed/VBD
that/IN
phone/NN
calls/NNS
were/VBD
bugged/VBN
during/IN
the/DT
examination/NN
of/IN
Lincoln/NNP
S&L/NNP
and/CC
that/IN
federal/JJ
officials/NNS
delayed/VBD
Lincoln/NNP
's/POS
seizure/NN
until/IN
it/PRP
had/VBD
become/VBN
the/DT
costliest/JJS
thrift/NN
failure/NN
ever/RB
./.
Federal/NNP
Express/NNP
pilots/NNS
voted/VBD
against/IN
joining/VBG
a/DT
union/NN
,/,
a/DT
major/JJ
victory/NN
for/IN
Chairman/NNP
Frederick/NNP
Smith/NNP
./.
Intel/NNP
's/POS
most/JJS
powerful/JJ
chip/NN
has/VBZ
flaws/NNS
that/WDT
could/MD
delay/VB
several/JJ
computer/NN
makers/NNS
'/POS
marketing/NN
efforts/NNS
./.
But/CC
the/DT
bugs/NNS
are/VBP
n't/RB
expected/VBN
to/TO
hurt/VB
Intel/NNP
and/CC
most/JJS
computer/NN
manufacturers/NNS
./.
Bethlehem/NNP
Steel/NNP
agreed/VBD
to/TO
form/VB
a/DT
joint/JJ
venture/NN
with/IN
the/DT
world/NN
's/POS
second-biggest/JJ
steelmaker/NN
,/,
Usinor-Sacilor/NNP
of/IN
France/NNP
,/,
to/TO
modernize/VB
part/NN
of/IN
Bethlehem/NNP
's/POS
ailing/JJ
BethForge/NNP
division/NN
./.
The/DT
Treasury/NNP
will/MD
hold/VB
an/DT
unscheduled/JJ
auction/NN
of/IN
securities/NNS
next/IN
week/NN
to/TO
raise/VB
$/$
17/CD
billion/CD
./.
The/DT
unusual/JJ
move/NN
is/VBZ
intended/VBN
to/TO
buy/VB
time/NN
for/IN
Congress/NNP
to/TO
debate/VB
a/DT
debt-limit/NN
increase/NN
./.
Private-sector/JJ
union/NN
contracts/NNS
signed/VBN
in/IN
the/DT
third/JJ
quarter/NN
granted/VBD
an/DT
average/JJ
annual/JJ
wage/NN
increase/NN
of/IN
3/CD
%/NN
,/,
slightly/RB
below/IN
the/DT
second-quarter/JJ
rise/NN
but/CC
still/RB
above/IN
year-ago/JJ
levels/NNS
./.
Quantum/NNP
Chemical/NNP
suspended/VBD
its/PRP$
cash/NN
dividend/NN
in/IN
favor/NN
of/IN
a/DT
stock/NN
payout/NN
./.
It/PRP
also/RB
posted/VBD
a/DT
quarterly/JJ
loss/NN
./.
Navigation/NNP
Mixte/NNP
rejected/VBD
as/IN
too/RB
low/JJ
a/DT
$/$
1.77/CD
billion/CD
bid/NN
by/IN
Paribas/NNS
,/,
which/WDT
is/VBZ
seeking/VBG
to/TO
boost/VB
its/PRP$
stake/NN
in/IN
the/DT
French/JJ
conglomerate/NN
to/TO
66.7/CD
%/NN
./.
France/NNP
's/POS
Banque/NNP
Indosuez/NNP
surprised/VBD
London/NNP
markets/NNS
by/IN
moving/VBG
to/TO
become/VB
the/DT
dominant/JJ
shareholder/NN
in/IN
merchant/NN
bank/NN
Morgan/NNP
Grenfell/NNP
./.
Markets/NNS
--/:
Stocks/NNS
:/:
Volume/NN
175,240,000/CD
shares/NNS
./.
Dow/NNP
Jones/NNP
industrials/VBZ
2613.73/CD
,/,
off/RB
39.55/CD
;/:
transportation/NN
1205.19/CD
,/,
up/RB
5.87/CD
;/:
utilities/NNS
215.67/CD
,/,
off/RB
0.82/CD
./.
Bonds/NNS
:/:
Shearson/NNP
Lehman/NNP
Hutton/NNP
Treasury/NNP
index/NN
3425.60/CD
,/,
off/RB
Commodities/NNS
:/:
Dow/NNP
Jones/NNP
futures/NNS
index/NN
129.22/CD
,/,
off/RB
0.26/CD
;/:
spot/NN
index/NN
131.04/CD
,/,
up/RB
0.31/CD
./.
Dollar/NN
:/:
142.10/CD
yen/NN
,/,
up/RB
0.58/CD
;/:
1.8400/CD
marks/NNS
,/,
up/RB
0.0047/CD
./.
Maclean/NNP
Hunter/NNP
Ltd./NNP
said/VBD
its/PRP$
board/NN
approved/VBD
a/DT
shareholder-rights/JJ
plan/NN
that/WDT
would/MD
prevent/VB
a/DT
suitor/NN
from/IN
gaining/VBG
effective/JJ
control/NN
of/IN
the/DT
company/NN
without/IN
shareholder/NN
approval/NN
./.
The/DT
plan/NN
is/VBZ
similar/JJ
to/TO
modified/JJ
``/``
poison/JJ
pills/NNS
''/''
recently/RB
adopted/VBN
by/IN
several/JJ
other/JJ
Canadian/JJ
companies/NNS
./.
But/CC
it/PRP
leaves/VBZ
open/JJ
the/DT
possibility/NN
of/IN
an/DT
acquisition/NN
of/IN
Maclean/NNP
Hunter/NNP
without/IN
approval/NN
by/IN
its/PRP$
board/NN
./.
Under/IN
the/DT
plan/NN
,/,
holders/NNS
other/JJ
than/IN
a/DT
suitor/NN
would/MD
be/VB
able/JJ
to/TO
buy/VB
additional/JJ
shares/NNS
at/IN
50/CD
%/NN
of/IN
the/DT
market/NN
price/NN
,/,
if/IN
a/DT
person/NN
or/CC
group/NN
acquired/VBD
10/CD
%/NN
of/IN
Maclean/NNP
Hunter/NNP
's/POS
Class/NNP
X/NNP
voting/JJ
shares/NNS
./.
The/DT
plan/NN
would/MD
n't/RB
be/VB
triggered/VBN
if/IN
the/DT
board/NN
approved/VBD
the/DT
acquisition/NN
or/CC
if/IN
the/DT
suitor/NN
made/VBD
an/DT
offer/NN
for/IN
all/DT
shares/NNS
outstanding/JJ
and/CC
the/DT
offer/NN
was/VBD
approved/VBN
by/IN
50/CD
%/NN
of/IN
holders/NNS
,/,
other/JJ
than/IN
the/DT
bidder/NN
,/,
at/IN
a/DT
special/JJ
meeting/NN
./.
Ronald/NNP
Osborne/NNP
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
the/DT
publishing/NN
,/,
broadcasting/NN
and/CC
cable-television/NN
concern/NN
,/,
said/VBD
the/DT
plan/NN
is/VBZ
meant/VBN
to/TO
ensure/VB
that/IN
all/DT
shareholders/NNS
enjoy/VBP
any/DT
takeover/NN
premium/NN
in/IN
the/DT
event/NN
of/IN
an/DT
acquisition/NN
./.
He/PRP
said/VBD
he/PRP
did/VBD
n't/RB
know/VB
of/IN
any/DT
planned/VBN
takeover/NN
moves/NNS
against/IN
the/DT
company/NN
./.
Mr./NNP
Osborne/NNP
said/VBD
Maclean/NNP
Hunter/NNP
Holdings/NNP
Ltd./NNP
,/,
owned/VBN
by/IN
certain/JJ
directors/NNS
and/CC
subsidiaries/NNS
of/IN
Maclean/NNP
Hunter/NNP
,/,
has/VBZ
a/DT
voting/NN
interest/NN
of/IN
about/RB
20/CD
%/NN
in/IN
the/DT
company/NN
;/:
no/DT
other/JJ
holder/NN
has/VBZ
as/RB
much/JJ
as/IN
10/CD
%/NN
./.
The/DT
plan/NN
takes/VBZ
effect/NN
immediately/RB
,/,
pending/VBG
shareholder/NN
confirmation/NN
at/IN
its/PRP$
annual/JJ
meeting/NN
in/IN
April/NNP
./.
The/DT
company/NN
said/VBD
holders/NNS
also/RB
will/MD
be/VB
asked/VBN
to/TO
approve/VB
the/DT
reclassification/NN
of/IN
Class/NNP
X/NNP
and/CC
non-voting/JJ
Class/NNP
Y/NNP
shares/NNS
into/IN
a/DT
single/JJ
class/NN
of/IN
voting/JJ
common/JJ
shares/NNS
on/IN
a/DT
one-for-one/JJ
basis/NN
./.
It/PRP
said/VBD
the/DT
market/NN
value/NN
of/IN
Class/NNP
Y/NNP
shares/NNS
had/VBD
traded/VBN
at/IN
a/DT
``/``
significant/JJ
discount/NN
''/''
to/TO
Class/NNP
X/NNP
shares/NNS
./.
Separately/NNP
,/,
Maclean/NNP
Hunter/NNP
said/VBD
third-quarter/JJ
net/JJ
income/NN
fell/VBD
12/CD
%/NN
to/TO
19.2/CD
million/CD
Canadian/JJ
dollars/NNS
$/$
16.4/CD
million/CD
12/CD
Canadian/JJ
cents/NNS
10.2/CD
U.S./NNP
cents/NNS
a/DT
share/NN
,/,
from/IN
C$/$
21.9/CD
million/CD
,/,
or/CC
14/CD
Canadian/JJ
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
ago/RB
./.
Revenue/NN
was/VBD
up/RB
6.8/CD
%/NN
to/TO
C$/$
336.5/CD
million/CD
from/IN
$/$
315.2/CD
million/CD
./.
House/NNP
and/CC
Senate/NNP
negotiators/NNS
approved/VBD
a/DT
$/$
3.18/CD
billion/CD
anti-drug/JJ
and/CC
anti-crime/JJ
initiative/NN
,/,
cutting/VBG
domestic/JJ
and/CC
defense/NN
spending/NN
0.43/CD
%/NN
to/TO
pay/VB
for/IN
it/PRP
./.
The/DT
package/NN
would/MD
put/VB
more/JJR
emphasis/NN
on/IN
drug/NN
treatment/NN
,/,
education/NN
and/CC
prevention/NN
programs/NNS
favored/VBN
by/IN
Democrats/NNPS
than/IN
President/NNP
Bush/NNP
's/POS
smaller/JJR
proposal/NN
./.
It/PRP
is/VBZ
part/NN
of/IN
a/DT
compromise/JJ
$/$
26/CD
billion/CD
fiscal/JJ
1990/CD
spending/NN
bill/NN
for/IN
the/DT
Transportation/NNP
Department/NNP
and/CC
highway/NN
and/CC
airport/NN
trust/NN
funds/NNS
that/IN
the/DT
House/NN
is/VBZ
expected/VBN
to/TO
ratify/VB
Tuesday/NNP
./.
The/DT
negotiators/NNS
made/VBD
only/RB
small/JJ
changes/NNS
to/TO
the/DT
Senate-passed/JJ
plan/NN
,/,
which/WDT
was/VBD
the/DT
product/NN
of/IN
more/RBR
than/IN
a/DT
week/NN
of/IN
negotiations/NNS
between/IN
senators/NNS
and/CC
Bush/NNP
administration/NN
officials/NNS
./.
When/WRB
added/VBN
to/TO
previously/RB
approved/VBN
programs/NNS
,/,
anti-drug/JJ
spending/NN
authority/NN
for/IN
the/DT
current/JJ
fiscal/JJ
year/NN
would/MD
reach/VB
$/$
8.8/CD
billion/CD
,/,
$/$
900/CD
million/CD
more/JJR
than/IN
Mr./NNP
Bush/NNP
requested/VBD
and/CC
$/$
3.1/CD
billion/CD
more/RBR
than/IN
in/IN
fiscal/NN
1989/CD
,/,
which/WDT
ended/VBD
Sept./NNP
30/CD
./.
The/DT
initiative/NN
,/,
which/WDT
also/RB
contains/VBZ
funds/NNS
for/IN
Mr./NNP
Bush/NNP
's/POS
anti-crime/JJ
package/NN
,/,
would/MD
provide/VB
about/RB
$/$
1/CD
billion/CD
for/IN
federal/JJ
prison/NN
construction/NN
,/,
another/DT
approximately/RB
$/$
1/CD
billion/CD
for/IN
various/JJ
federal/JJ
treatment/NN
,/,
education/NN
and/CC
prevention/NN
programs/NNS
,/,
and/CC
about/RB
$/$
500/CD
million/CD
for/IN
federal/JJ
law-enforcement/NN
and/CC
drug-interdiction/JJ
agencies/NNS
./.
The/DT
measure/NN
approved/VBN
yesterday/NN
does/VBZ
n't/RB
include/VB
increased/JJ
anti-drug/JJ
funding/NN
that/WDT
was/VBD
already/RB
incorporated/VBN
into/IN
other/JJ
spending/NN
bills/NNS
./.
Of/IN
funding/NN
for/IN
anti-drug/JJ
programs/NNS
,/,
nearly/RB
$/$
2.1/CD
billion/CD
in/IN
spending/NN
authority/NN
would/MD
be/VB
offset/VBN
from/IN
other/JJ
federal/JJ
funds/NNS
in/IN
order/NN
to/TO
avoid/VB
enlarging/VBG
the/DT
budget/NN
deficit/NN
./.
More/JJR
than/IN
$/$
1.3/CD
billion/CD
of/IN
the/DT
cuts/NNS
would/MD
come/VB
from/IN
new/JJ
defense/NN
budget/NN
authority/NN
,/,
or/CC
$/$
797/CD
million/CD
in/IN
direct/JJ
spending/NN
./.
Foreign/JJ
aid/NN
accounts/NNS
would/MD
be/VB
reduced/VBN
by/IN
$/$
82/CD
million/CD
in/IN
spending/NN
authority/NN
,/,
or/CC
$/$
42/CD
million/CD
in/IN
direct/JJ
spending/NN
./.
Domestic/JJ
spending/NN
authority/NN
would/MD
be/VB
cut/VBN
by/IN
$/$
678/CD
million/CD
,/,
or/CC
$/$
401/CD
million/CD
in/IN
outlays/NNS
,/,
although/IN
some/DT
accounts/NNS
will/MD
have/VB
new/JJ
anti-drug/JJ
and/CC
anti-crime/JJ
money/NN
added/VBD
back/RB
to/TO
them/PRP
./.
Budget/NN
authority/NN
measures/VBZ
the/DT
level/NN
of/IN
money/NN
appropriated/VBN
by/IN
Congress/NNP
to/TO
fund/VB
federal/JJ
programs/NNS
,/,
and/CC
outlays/NNS
represent/VBP
the/DT
direct/JJ
spending/NN
that/WDT
results/VBZ
as/IN
these/DT
accounts/NNS
are/VBP
drawn/VBN
down/RP
./.
The/DT
specific/JJ
offsetting/JJ
spending/NN
cuts/NNS
are/VBP
to/TO
be/VB
determined/VBN
by/IN
the/DT
13/CD
House/NNP
and/CC
13/CD
Senate/NNP
appropriations/NNS
subcommittees/NNS
./.
In/IN
some/DT
cases/NNS
,/,
those/DT
decisions/NNS
have/VBP
already/RB
been/VBN
made/VBN
and/CC
the/DT
results/NNS
reflected/VBN
in/IN
spending/NN
bills/NNS
approved/VBN
by/IN
the/DT
House/NNP
and/CC
Senate/NNP
./.
Separately/NNP
,/,
the/DT
Drug/NNP
Enforcement/NNP
Administration/NNP
said/VBD
it/PRP
launched/VBD
a/DT
new/JJ
attack/NN
on/IN
domestic/JJ
indoor/JJ
marijuana/NN
cultivation/NN
./.
The/DT
DEA/NNP
said/VBD
its/PRP$
agents/NNS
yesterday/NN
executed/VBD
38/CD
search/NN
warrants/NNS
in/IN
coordinated/VBN
raids/NNS
in/IN
42/CD
states/NNS
./.
The/DT
targets/NNS
were/VBD
stores/NNS
selling/VBG
equipment/NN
used/VBN
for/IN
growing/VBG
marijuana/NN
indoors/RB
,/,
the/DT
agency/NN
said/VBD
./.
The/DT
DEA/NNP
said/VBD
late/RB
yesterday/NN
afternoon/NN
that/IN
it/PRP
expected/VBD
more/JJR
than/IN
100/CD
people/NNS
would/MD
be/VB
arrested/VBN
in/IN
connection/NN
with/IN
the/DT
raids/NNS
./.
The/DT
agency/NN
estimated/VBD
that/IN
marijuana/NN
production/NN
in/IN
the/DT
U.S./NNP
has/VBZ
more/RBR
than/RB
doubled/VBN
since/IN
1986/CD
to/TO
at/IN
least/JJS
4,350/CD
tons/NNS
in/IN
1988/CD
./.
That/DT
amount/NN
represents/VBZ
about/RB
25/CD
%/NN
of/IN
the/DT
marijuana/NN
available/JJ
for/IN
use/NN
in/IN
the/DT
country/NN
,/,
the/DT
DEA/NNP
said/VBD
./.
A/DT
simmering/VBG
feud/NN
between/IN
the/DT
Thatcher/NNP
government/NN
's/POS
two/CD
senior/JJ
economic/JJ
experts/NNS
erupted/VBD
with/IN
the/DT
abrupt/JJ
resignation/NN
of/IN
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
Nigel/NNP
Lawson/NNP
,/,
sending/VBG
shock/NN
waves/NNS
through/IN
an/DT
already/RB
shaken/VBN
financial/JJ
community/NN
and/CC
prompting/VBG
an/DT
emergency/NN
cabinet/NN
shuffle/NN
./.
Prime/NNP
Minister/NNP
Margaret/NNP
Thatcher/NNP
named/VBD
Foreign/NNP
Secretary/NNP
John/NNP
Major/NNP
to/TO
succeed/VB
Mr./NNP
Lawson/NNP
./.
Sir/NNP
Geoffrey/NNP
Howe/NNP
,/,
deputy/JJ
prime/JJ
minister/NN
,/,
rushed/VBD
out/RP
a/DT
statement/NN
in/IN
the/DT
House/NNP
of/IN
Commons/NNP
that/IN
the/DT
government/NN
's/POS
economic/JJ
and/CC
monetary/JJ
policies/NNS
would/MD
remain/VB
``/``
unchanged/JJ
./.
''/''
Meanwhile/RB
,/,
Sir/NNP
Alan/NNP
Walters/NNP
,/,
Mrs./NNP
Thatcher/NNP
's/POS
controversial/JJ
economic/JJ
adviser/NN
and/CC
Mr./NNP
Lawson/NNP
's/POS
nemesis/NN
,/,
also/RB
announced/VBD
his/PRP$
resignation/NN
./.
The/DT
pound/NN
,/,
which/WDT
has/VBZ
already/RB
slid/VBN
about/RB
10/CD
%/NN
against/IN
the/DT
West/JJ
German/JJ
mark/NN
in/IN
recent/JJ
weeks/NNS
,/,
plunged/VBD
further/RB
on/IN
the/DT
news/NN
./.
In/IN
late/JJ
New/NNP
York/NNP
trading/NN
yesterday/NN
,/,
sterling/NN
was/VBD
quoted/VBN
at/IN
$/$
1.5765/CD
,/,
down/RB
sharply/RB
from/IN
$/$
1.6145/CD
late/RB
Wednesday/NNP
./.
And/CC
brokers/NNS
were/VBD
bracing/VBG
for/IN
a/DT
grueling/JJ
Friday/NNP
in/IN
financial/JJ
markets/NNS
here/RB
./.
``/``
You/PRP
're/VBP
going/VBG
to/TO
get/VB
quite/PDT
a/DT
major/JJ
fall/NN
in/IN
the/DT
equity/NN
market/NN
and/CC
the/DT
gilt/NN|JJ
markets/NNS
,/,
''/''
said/VBD
Gwyn/NNP
Hacche/NNP
,/,
U.K./NNP
economist/NN
with/IN
James/NNP
Capel/NNP
&/CC
Co/NNP
./.
``/``
Markets/NNS
hate/VBP
uncertainty/NN
./.
''/''
Despite/IN
the/DT
Howe/NNP
statement/NN
,/,
the/DT
Thatcher/NNP
government/NN
's/POS
economic/JJ
policy/NN
appeared/VBD
to/TO
be/VB
in/IN
chaos/NN
./.
One/CD
major/JJ
question/NN
is/VBZ
just/RB
how/WRB
the/DT
government/NN
will/MD
handle/VB
matters/NNS
on/IN
which/WDT
Mr./NNP
Lawson/NNP
and/CC
Sir/NNP
Alan/NNP
differed/VBD
explosively/RB
./.
The/DT
two/CD
men/NNS
clashed/VBD
bitterly/RB
over/IN
the/DT
importance/NN
of/IN
exchange/NN
rates/NNS
in/IN
setting/VBG
monetary/JJ
policy/NN
and/CC
the/DT
wisdom/NN
of/IN
Britain/NNP
fully/RB
joining/VBG
the/DT
European/NNP
Monetary/NNP
System/NNP
,/,
which/WDT
links/VBZ
together/RB
the/DT
major/JJ
currencies/NNS
in/IN
the/DT
European/NNP
Community/NNP
./.
Though/IN
jolted/VBN
by/IN
the/DT
surrounding/JJ
confusion/NN
,/,
Mrs./NNP
Thatcher/NNP
emerged/VBD
in/IN
undisputed/JJ
command/NN
of/IN
her/PRP$
government/NN
's/POS
economic/JJ
program/NN
./.
Neil/NNP
Kinnock/NNP
,/,
Labor/NNP
Party/NNP
leader/NN
,/,
dubbed/VBD
the/DT
46-year-old/JJ
Mr./NNP
Major/NNP
a/DT
``/``
lap/NN
dog/NN
''/''
unlikely/JJ
to/TO
veer/VB
from/IN
his/PRP$
boss/NN
's/VBZ
strongly/RB
held/VBN
views/NNS
,/,
as/IN
Mr./NNP
Lawson/NNP
sometimes/RB
did/VBD
./.
From/IN
the/DT
standpoint/NN
of/IN
the/DT
financial/JJ
markets/NNS
,/,
however/RB
,/,
the/DT
prime/JJ
minister/NN
's/POS
positions/NNS
seem/VBP
murky/JJ
--/:
in/IN
large/JJ
part/NN
because/IN
she/PRP
has/VBZ
presided/VBN
over/IN
dueling/VBG
advisers/NNS
for/IN
the/DT
last/JJ
six/CD
months/NNS
./.
``/``
I/PRP
do/VBP
n't/RB
know/VB
where/WRB
Thatcher/NNP
stands/VBZ
,/,
''/''
said/VBD
Paul/NNP
Horne/NNP
,/,
an/DT
economist/NN
with/IN
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
&/CC
Co./NNP
in/IN
Paris/NNP
./.
``/``
She/PRP
's/VBZ
played/VBD
such/PDT
a/DT
cat-and-mouse/JJ
game/NN
with/IN
her/PRP$
advisers/NNS
./.
''/''
Although/IN
sometimes/RB
arcane/JJ
economic/JJ
debates/NNS
undergirded/VBD
the/DT
Lawson-Walters/NNP
rift/NN
,/,
the/DT
57-year-old/JJ
Mr./NNP
Lawson/NNP
's/POS
surprise/NN
departure/NN
boiled/VBD
down/RP
to/TO
a/DT
simple/JJ
stand/NN
of/IN
he-goes-or-I-go/JJ
./.
In/IN
his/PRP$
letter/NN
to/TO
Mrs./NNP
Thatcher/NNP
,/,
Mr./NNP
Lawson/NNP
stated/VBD
:/:
``/``
The/DT
successful/JJ
conduct/NN
of/IN
economic/JJ
policy/NN
is/VBZ
possible/JJ
only/RB
if/IN
there/EX
is/VBZ
,/,
and/CC
is/VBZ
seen/VBN
to/TO
be/VB
,/,
full/JJ
agreement/NN
between/IN
the/DT
prime/JJ
minister/NN
and/CC
chancellor/NN
of/IN
the/DT
exchequer/NN
./.
Recent/JJ
events/NNS
have/VBP
confirmed/VBN
that/IN
this/DT
essential/JJ
requirement/NN
can/MD
not/RB
be/VB
satisfied/VBN
so/RB
long/RB
as/IN
Alan/NNP
Walters/NNP
remains/VBZ
your/PRP$
personal/JJ
economic/JJ
adviser/NN
./.
''/''
The/DT
upheaval/NN
leaves/VBZ
the/DT
Thatcher/NNP
government/NN
isolated/VBN
within/IN
the/DT
European/NNP
Community/NNP
./.
Six/CD
months/NNS
ago/RB
,/,
the/DT
British/JJ
prime/JJ
minister/NN
's/POS
two/CD
senior/JJ
cabinet/NN
members/NNS
--/:
Mr./NNP
Lawson/NNP
,/,
chancellor/NN
since/IN
1983/CD
,/,
and/CC
Sir/NNP
Geoffrey/NNP
,/,
then/RB
the/DT
foreign/JJ
secretary/NN
--/:
both/DT
supported/VBD
Britain/NNP
's/POS
early/JJ
entry/NN
into/IN
the/DT
EMS/NNP
./.
With/IN
Mr./NNP
Lawson/NNP
out/IN
of/IN
the/DT
cabinet/NN
,/,
and/CC
Sir/NNP
Geoffrey/NNP
in/IN
the/DT
less-influential/JJ
job/NN
of/IN
deputy/JJ
prime/JJ
minister/NN
,/,
there/EX
's/VBZ
little/JJ
to/TO
counter/VB
Mrs./NNP
Thatcher/NNP
's/POS
innate/JJ
suspicion/NN
of/IN
the/DT
EC/NNP
's/POS
exchange-rate/NN
mechanism/NN
./.
Sir/NNP
Alan/NNP
,/,
brought/VBN
back/RB
to/TO
Downing/NNP
Street/NNP
last/JJ
spring/NN
as/IN
her/PRP$
adviser/NN
,/,
adamantly/RB
opposed/VBD
it/PRP
./.
Indeed/RB
,/,
the/DT
final/JJ
fracas/NN
in/IN
the/DT
Lawson-Walters/NNP
battle/NN
involved/VBD
the/DT
EMS/NNP
./.
Sir/NNP
Alan/NNP
,/,
who/WP
also/RB
works/VBZ
in/IN
Washington/NNP
,/,
D.C./NNP
,/,
as/IN
a/DT
consultant/NN
to/TO
the/DT
World/NNP
Bank/NNP
and/CC
a/DT
fellow/NN
at/IN
the/DT
American/NNP
Enterprise/NNP
Institute/NNP
,/,
said/VBD
in/IN
a/DT
article/NN
to/TO
be/VB
published/VBN
in/IN
a/DT
U.S./NNP
economic/JJ
journal/NN
that/IN
the/DT
EMS/NNP
was/VBD
``/``
half-baked/JJ
./.
''/''
The/DT
scoff/NN
,/,
coming/VBG
from/IN
the/DT
man/NN
many/JJ
consider/VBP
Mrs./NNP
Thatcher/NNP
's/POS
most/RBS
influential/JJ
adviser/NN
,/,
sparked/VBD
considerable/JJ
worry/NN
./.
It/PRP
not/RB
only/RB
conflicted/VBN
with/IN
Mr./NNP
Lawson/NNP
's/POS
views/NNS
but/CC
ran/VBD
counter/RB
to/TO
the/DT
position/NN
Mrs./NNP
Thatcher/NNP
took/VBD
at/IN
the/DT
EC/NNP
summit/NN
in/IN
Madrid/NNP
last/JJ
June/NNP
./.
There/RB
,/,
she/PRP
said/VBD
that/IN
Britain/NNP
would/MD
join/VB
the/DT
EMS/NNP
once/IN
the/DT
EC/NNP
had/VBD
completely/RB
liberalized/VBN
restrictions/NNS
on/IN
capital/NN
movements/NNS
and/CC
exchange/NN
controls/NNS
,/,
and/CC
once/RB
Britain/NNP
's/POS
inflation/NN
rate/NN
had/VBD
fallen/VBN
into/IN
line/NN
with/IN
the/DT
rest/NN
of/IN
the/DT
EC/NNP
./.
Economists/NNS
expect/VBP
those/DT
conditions/NNS
to/TO
be/VB
met/VBN
in/IN
1990/CD
or/CC
1991/CD
./.
Mr./NNP
Lawson/NNP
stated/VBD
in/IN
a/DT
House/NNP
of/IN
Commons/NNP
debate/NN
this/DT
week/NN
that/IN
Sir/NNP
Alan/NNP
's/POS
views/NNS
``/``
are/VBP
n't/RB
the/DT
view/NN
of/IN
the/DT
government/NN
./.
''/''
And/CC
in/IN
a/DT
subsequent/JJ
television/NN
interview/NN
,/,
he/PRP
said/VBD
,/,
``/``
I/PRP
think/VBP
it/PRP
is/VBZ
right/JJ
that/IN
advisers/NNS
do/VBP
not/RB
talk/VB
or/CC
write/VB
in/IN
public/NN
./.
''/''
Worn/VBN
down/IN
by/IN
the/DT
feud/NN
,/,
he/PRP
then/RB
made/VBD
it/PRP
clear/JJ
to/TO
Mrs./NNP
Thatcher/NNP
that/IN
he/PRP
expected/VBD
the/DT
controversial/JJ
adviser/NN
to/TO
be/VB
ousted/VBN
./.
In/IN
remarks/NNS
in/IN
Commons/NN
yesterday/NN
afternoon/NN
,/,
the/DT
prime/JJ
minister/NN
disappointed/VBD
him/PRP
./.
As/IN
she/PRP
has/VBZ
done/VBN
in/IN
the/DT
past/NN
,/,
she/PRP
stated/VBD
her/PRP$
support/NN
for/IN
Mr./NNP
Lawson/NNP
but/CC
insisted/VBD
on/IN
keeping/VBG
on/RP
an/DT
adviser/NN
who/WP
opposed/VBD
and/CC
disparaged/VBD
his/PRP$
policies/NNS
./.
The/DT
EMS/NNP
views/NNS
of/IN
Mr./NNP
Major/NNP
,/,
who/WP
served/VBD
as/IN
Mr./NNP
Lawson/NNP
's/POS
deputy/NN
in/IN
1987/CD
,/,
are/VBP
n't/RB
fully/RB
known/VBN
./.
Speaking/NNP
in/IN
the/DT
House/NNP
of/IN
Commons/NNP
last/JJ
night/NN
,/,
he/PRP
said/VBD
of/IN
Mr./NNP
Lawson/NNP
,/,
``/``
I/PRP
was/VBD
proud/JJ
to/TO
serve/VB
in/IN
his/PRP$
team/NN
and/CC
proud/JJ
that/IN
he/PRP
has/VBZ
been/VBN
and/CC
will/MD
remain/VB
a/DT
good/JJ
friend/NN
./.
''/''
To/TO
a/DT
great/JJ
extent/NN
,/,
the/DT
Downing/NNP
Street/NNP
blow-up/NN
is/VBZ
the/DT
result/NN
of/IN
Mrs./NNP
Thatcher/NNP
's/POS
management/NN
approach/NN
./.
Fond/JJ
of/IN
playing/VBG
her/PRP$
senior/JJ
advisers/NNS
off/RP
against/IN
each/DT
other/JJ
,/,
the/DT
prime/JJ
minister/NN
has/VBZ
often/RB
allowed/VBN
rivalries/NNS
and/CC
animosities/NNS
to/TO
bubble/VB
up/RP
within/IN
her/PRP$
cabinet/NN
./.
Financial/JJ
markets/NNS
prefer/VBP
a/DT
clear/JJ
message/NN
from/IN
the/DT
government/NN
on/IN
its/PRP$
economic/JJ
priorities/NNS
and/CC
strategies/NNS
./.
Since/IN
the/DT
spring/NN
,/,
the/DT
Thatcher/NNP
government/NN
has/VBZ
instead/RB
broadcast/VBN
a/DT
cacophony/NN
./.
Mr./NNP
Lawson/NNP
carefully/RB
watched/VBD
exchange/NN
rates/NNS
and/CC
stood/VBD
ready/JJ
to/TO
increase/VB
U.K./NNP
interest/NN
rates/NNS
when/WRB
the/DT
pound/NN
slid/VBD
too/RB
sharply/RB
against/IN
the/DT
dollar/NN
or/CC
the/DT
mark/NN
./.
By/IN
contrast/NN
,/,
Sir/NNP
Alan/NNP
was/VBD
viewed/VBN
as/IN
a/DT
``/``
free-floater/NN
,/,
''/''
or/CC
one/PRP
who/WP
was/VBD
inclined/VBN
to/TO
let/VB
the/DT
currency/NN
markets/NNS
set/VB
the/DT
level/NN
for/IN
the/DT
pound/NN
./.
Last/JJ
summer/NN
,/,
when/WRB
the/DT
skirmishing/NN
became/VBD
obvious/JJ
,/,
Smith/NNP
Barney/NNP
's/POS
Mr./NNP
Horne/NNP
said/VBD
that/IN
the/DT
antipathies/NNS
were/VBD
``/``
adding/VBG
confusion/NN
to/TO
an/DT
already/RB
murky/JJ
situation/NN
''/''
in/IN
which/WDT
sterling/NN
was/VBD
becoming/VBG
an/DT
increasingly/RB
volatile/JJ
currency/NN
./.
``/``
I/PRP
question/VBP
the/DT
strategy/NN
of/IN
having/VBG
an/DT
alternate/JJ
economic/JJ
adviser/NN
,/,
''/''
he/PRP
added/VBD
./.
Mrs./NNP
Thatcher/NNP
's/POS
ties/NNS
with/IN
Sir/NNP
Alan/NNP
were/VBD
cemented/VBN
during/IN
her/PRP$
first/JJ
term/NN
,/,
when/WRB
the/DT
straight-talking/JJ
economist/NN
served/VBD
for/IN
three/CD
years/NNS
as/IN
a/DT
key/JJ
adviser/NN
./.
According/VBG
to/TO
a/DT
former/JJ
Downing/NNP
Street/NNP
aide/NN
,/,
she/PRP
would/MD
then/RB
say/VB
to/TO
him/PRP
,/,
``/``
You/PRP
get/VBP
the/DT
economics/NNS
right/RB
,/,
and/CC
I/PRP
'll/MD
get/VB
the/DT
politics/NNS
right/RB
./.
''/''
Craig/NNP
Forman/NNP
and/CC
Richard/NNP
E./NNP
Rustin/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Some/DT
important/JJ
people/NNS
plan/VBP
to/TO
gather/VB
here/RB
soon/RB
to/TO
say/VB
nice/JJ
things/NNS
about/IN
Brian/NNP
P./NNP
Monieson/NNP
./.
The/DT
occasion/NN
is/VBZ
n't/RB
a/DT
tribute/NN
to/TO
the/DT
former/JJ
Chicago/NNP
Mercantile/NNP
Exchange/NNP
chairman/NN
,/,
however/RB
,/,
but/CC
a/DT
hearing/NN
at/IN
which/WDT
federal/JJ
commodity/NN
regulators/NNS
hope/VBP
to/TO
ban/VB
him/PRP
from/IN
the/DT
futures/NNS
industry/NN
./.
The/DT
Commodity/NNP
Futures/NNP
Trading/NNP
Commission/NNP
alleges/VBZ
that/IN
Mr./NNP
Monieson/NNP
was/VBD
warned/VBN
that/IN
some/DT
brokers/NNS
at/IN
his/PRP$
GNP/NNP
Commodities/NNP
Inc./NNP
were/VBD
bilking/VBG
investors/NNS
and/CC
that/IN
he/PRP
failed/VBD
to/TO
stop/VB
them/PRP
promptly/RB
./.
One/CD
of/IN
the/DT
brokers/NNS
in/IN
question/NN
was/VBD
one/CD
of/IN
Mr./NNP
Monieson/NNP
's/POS
best/JJS
friends/NNS
./.
The/DT
case/NN
has/VBZ
become/VBN
the/DT
most/RBS
closely/RB
watched/VBN
civil/JJ
commodity/NN
enforcement/NN
action/NN
in/IN
recent/JJ
memory/NN
,/,
with/IN
the/DT
futures/NNS
industry/NN
's/POS
top/JJ
officials/NNS
rallying/VBG
to/TO
Mr./NNP
Monieson/NNP
's/POS
defense/NN
./.
His/PRP$
scheduled/VBN
character/NN
witnesses/NNS
at/IN
the/DT
Nov./NNP
6/CD
hearing/NN
include/VBP
:/:
U.S./NNP
Agriculture/NNP
Secretary/NNP
Clayton/NNP
Yeutter/NNP
,/,
who/WP
was/VBD
Merc/NNP
president/NN
under/IN
Mr./NNP
Monieson/NNP
;/:
Leo/NNP
Melamed/NNP
,/,
chairman/NN
of/IN
the/DT
Merc/NNP
's/POS
executive/JJ
committee/NN
,/,
and/CC
Robert/NNP
K./NNP
Wilmouth/NNP
,/,
president/NN
of/IN
the/DT
National/NNP
Futures/NNP
Association/NNP
,/,
an/DT
industry-funded/JJ
regulatory/JJ
group/NN
./.
Mr./NNP
Monieson/NNP
's/POS
attorney/NN
in/IN
the/DT
matter/NN
is/VBZ
Jerrold/NNP
E./NNP
Salzman/NNP
,/,
the/DT
Merc/NNP
's/POS
influential/JJ
outside/JJ
counsel/NN
./.
The/DT
GNP/NNP
brokers/NNS
allegedly/RB
``/``
allocated/VBD
''/''
trades/NNS
,/,
meaning/VBG
they/PRP
initiated/VBD
futures/NNS
trades/NNS
without/IN
the/DT
required/JJ
customer/NN
account/NN
numbers/NNS
and/CC
then/RB
kept/VBD
the/DT
profitable/JJ
ones/NNS
for/IN
themselves/PRP
and/CC
stuck/VBD
customers/NNS
with/IN
the/DT
losers/NNS
./.
Mr./NNP
Monieson/NNP
,/,
a/DT
childhood/NN
math/NN
whiz/NN
and/CC
self-described/JJ
computer/NN
nerd/NN
,/,
denies/VBZ
these/DT
charges/NNS
and/CC
expects/VBZ
that/IN
he/PRP
and/CC
GNP/NNP
will/MD
be/VB
exonerated/VBN
./.
Noting/VBG
that/IN
GNP/NNP
processed/VBD
some/RB
nine/CD
million/CD
trades/NNS
last/JJ
year/NN
,/,
he/PRP
says/VBZ
,/,
``/``
Who/WP
the/DT
heck/NN
what/WP
's/VBZ
going/VBG
on/IN
with/IN
50/CD
trades/NNS
out/IN
of/IN
nine/CD
million/CD
?/.
''/''
If/IN
he/PRP
loses/VBZ
at/IN
the/DT
hearing/NN
,/,
Mr./NNP
Monieson/NNP
can/MD
appeal/VB
to/TO
the/DT
full/JJ
panel/NN
of/IN
CFTC/NNP
commissioners/NNS
and/CC
then/RB
to/TO
the/DT
federal/JJ
courts/NNS
./.
Messrs./NNP
Melamed/NNP
,/,
Salzman/NNP
and/CC
Wilmouth/NNP
came/VBD
to/TO
their/PRP$
friend/NN
's/POS
aid/NN
despite/IN
the/DT
fact/NN
that/IN
the/DT
Merc/NNP
and/CC
the/DT
National/NNP
Futures/NNP
Association/NNP
brought/VBD
similar/JJ
failure-to-supervise/JJ
charges/NNS
against/IN
GNP/NNP
,/,
though/IN
not/RB
against/IN
Mr./NNP
Monieson/NNP
personally/RB
./.
To/TO
some/DT
,/,
the/DT
case/NN
shows/VBZ
the/DT
fallacy/NN
of/IN
self-regulation/NN
,/,
a/DT
concept/NN
the/DT
futures/NNS
industry/NN
cherishes/VBZ
./.
In/IN
theory/NN
,/,
traders/NNS
and/CC
brokers/NNS
will/MD
police/VB
themselves/PRP
because/IN
widespread/JJ
fraud/NN
would/MD
discredit/VB
the/DT
industry/NN
and/CC
frighten/VB
away/RP
investors/NNS
./.
This/DT
``/``
enlightened/JJ
self-interest/NN
''/''
is/VBZ
supposed/VBN
to/TO
overcome/VB
the/DT
built-in/JJ
conflicts/NNS
of/IN
interest/NN
./.
``/``
The/DT
problem/NN
with/IN
self-regulation/NN
is/VBZ
always/RB
that/IN
the/DT
regulators/NNS
are/VBP
tinged/VBN
with/IN
self-interest/NN
,/,
''/''
says/VBZ
David/NNP
Ruder/NNP
,/,
the/DT
just-departed/JJ
chairman/NN
of/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
./.
In/IN
this/DT
case/NN
,/,
Mr./NNP
Ruder/NNP
says/VBZ
,/,
``/``
it/PRP
would/MD
seem/VB
they/PRP
're/VBP
acting/VBG
in/IN
two/CD
capacities/NNS
--/:
that/IN
people/NNS
of/IN
that/DT
stature/NN
would/MD
testify/VB
in/IN
a/DT
disciplinary/JJ
case/NN
./.
One/PRP
would/MD
counsel/VB
the/DT
avoidance/NN
of/IN
an/DT
appearance/NN
of/IN
a/DT
conflict/NN
./.
''/''
Mr./NNP
Ruder/NNP
adds/VBZ
of/IN
Mr./NNP
Yeutter/NNP
:/:
``/``
It/PRP
seems/VBZ
odd/JJ
that/IN
people/NNS
in/IN
high/JJ
government/NN
positions/NNS
would/MD
intervene/VB
to/TO
testify/VB
./.
''/''
Mr./NNP
Salzman/NNP
says/VBZ
the/DT
Merc/NNP
gave/VBD
him/PRP
permission/NN
to/TO
represent/VB
Mr./NNP
Monieson/NNP
,/,
adding/VBG
there/EX
's/VBZ
no/DT
conflict/NN
because/IN
he/PRP
has/VBZ
recused/VBN
himself/PRP
from/IN
the/DT
Merc/NNP
's/POS
case/NN
./.
``/``
I/PRP
've/VBP
had/VBD
a/DT
long/JJ
personal/JJ
relationship/NN
with/IN
Brian/NNP
,/,
''/''
Mr./NNP
Salzman/NNP
says/VBZ
./.
``/``
I/PRP
could/MD
n't/RB
say/VB
no/UH
./.
''/''
Mr./NNP
Melamed/NNP
and/CC
Mr./NNP
Wilmouth/NNP
both/DT
said/VBD
they/PRP
see/VBP
no/DT
conflict/NN
because/IN
their/PRP$
organizations/NNS
did/VBD
n't/RB
charge/VB
Mr./NNP
Monieson/NNP
personally/RB
,/,
and/CC
they/PRP
're/VBP
only/RB
testifying/VBG
to/TO
his/PRP$
character/NN
./.
Mr./NNP
Yeutter/NNP
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
In/IN
an/DT
interview/NN
in/IN
his/PRP$
corner/JJ
office/NN
in/IN
the/DT
Merc/NNP
tower/NN
,/,
Mr./NNP
Monieson/NNP
contends/VBZ
he/PRP
is/VBZ
a/DT
victim/NN
of/IN
his/PRP$
own/JJ
celebrity/NN
./.
``/``
The/DT
CFTC/NNP
was/VBD
looking/VBG
for/IN
something/NN
high-profile/JJ
,/,
''/''
he/PRP
says/VBZ
./.
The/DT
investigation/NN
already/RB
has/VBZ
been/VBN
costly/JJ
to/TO
Mr./NNP
Monieson/NNP
./.
In/IN
January/NNP
1987/CD
,/,
he/PRP
was/VBD
two/CD
weeks/NNS
away/RB
from/IN
the/DT
sale/NN
of/IN
his/PRP$
firm/NN
for/IN
as/RB
much/JJ
as/IN
$/$
40/CD
million/CD
./.
But/CC
the/DT
deal/NN
hit/VBD
a/DT
snag/NN
./.
The/DT
Federal/NNP
Reserve/NNP
Board/NNP
,/,
which/WDT
had/VBD
to/TO
approve/VB
GNP/NNP
's/POS
sale/NN
to/TO
Banque/NNP
Indosuez/NNP
,/,
a/DT
French/JJ
bank/NN
,/,
learned/VBD
of/IN
the/DT
CFTC/NNP
investigation/NN
./.
A/DT
distressed/JJ
Mr./NNP
Monieson/NNP
called/VBD
the/DT
CFTC/NNP
,/,
and/CC
asked/VBD
its/PRP$
two/CD
top/JJ
lawyers/NNS
no/RB
fewer/JJR
than/IN
five/CD
times/NNS
to/TO
divulge/VB
confidential/JJ
details/NNS
of/IN
its/PRP$
probe/NN
into/IN
GNP/NNP
./.
They/PRP
refused/VBD
,/,
even/RB
after/IN
Mr./NNP
Monieson/NNP
warned/VBD
that/IN
the/DT
deal/NN
's/POS
collapse/NN
would/MD
become/VB
an/DT
``/``
international/JJ
incident/NN
''/''
between/IN
the/DT
U.S./NNP
and/CC
France/NNP
,/,
according/VBG
to/TO
a/DT
memo/NN
one/CD
of/IN
the/DT
lawyers/NNS
wrote/VBD
./.
The/DT
Banque/NNP
Indosuez/NNP
deal/NN
fell/VBD
through/RP
./.
Mr./NNP
Monieson/NNP
,/,
53/CD
years/NNS
old/JJ
,/,
wears/VBZ
the/DT
expensive/JJ
clothes/NNS
of/IN
a/DT
successful/JJ
trader/NN
but/CC
his/PRP$
mannerisms/NNS
are/VBP
more/RBR
those/DT
of/IN
a/DT
preoccupied/JJ
math/NN
professor/NN
./.
His/PRP$
office/NN
is/VBZ
filled/VBN
with/IN
toy/JJ
pigs/NNS
to/TO
remind/VB
him/PRP
of/IN
the/DT
fortune/NN
he/PRP
made/VBD
trading/VBG
pork/NN
bellies/NNS
./.
And/CC
behind/IN
his/PRP$
desk/NN
hangs/VBZ
a/DT
more/RBR
recent/JJ
sign/NN
of/IN
success/NN
,/,
a/DT
futures/NNS
trader/NN
's/POS
Picasso/NNP
:/:
a/DT
Leroy/NNP
Nieman/NNP
painting/NN
,/,
depicting/VBG
a/DT
horse/NN
race/NN
./.
Mr./NNP
Monieson/NNP
's/POS
defense/NN
at/IN
the/DT
CFTC/NNP
hearing/NN
will/MD
partly/RB
be/VB
that/IN
he/PRP
is/VBZ
a/DT
busy/JJ
man/NN
and/CC
was/VBD
n't/RB
personally/RB
involved/VBN
in/IN
GNP/NNP
's/POS
retail/JJ
brokerage/NN
business/NN
./.
During/IN
his/PRP$
years/NNS
as/IN
Merc/NNP
chairman/NN
,/,
1983/CD
through/IN
1985/CD
,/,
Mr./NNP
Monieson/NNP
played/VBD
host/NN
to/TO
prime/JJ
ministers/NNS
and/CC
crown/NN
princes/NNS
;/:
his/PRP$
attorneys/NNS
have/VBP
prepared/VBN
charts/NNS
showing/VBG
the/DT
many/JJ
Merc/NNP
meetings/NNS
he/PRP
attended/VBD
and/CC
the/DT
time/NN
he/PRP
spent/VBD
away/RB
on/IN
business/NN
./.
The/DT
lawyers/NNS
probably/RB
wo/MD
n't/RB
mention/VB
his/PRP$
interest/NN
in/IN
horse/NN
racing/NN
,/,
though/IN
Mr./NNP
Monieson/NNP
says/VBZ
it/PRP
remains/VBZ
a/DT
hobby/NN
./.
Mr./NNP
Monieson/NNP
,/,
born/VBN
on/IN
Chicago/NNP
's/POS
North/NNP
Side/NNP
,/,
by/IN
age/NN
five/CD
was/VBD
a/DT
faithful/JJ
reader/NN
of/IN
the/DT
Racing/NNP
Form/NNP
,/,
regularly/RB
joining/VBG
his/PRP$
father/NN
at/IN
the/DT
track/NN
,/,
he/PRP
says/VBZ
./.
Later/RB
,/,
he/PRP
bet/VBD
the/DT
ponies/NNS
with/IN
a/DT
high/JJ
school/NN
friend/NN
,/,
Myron/NNP
Rosenthal/NNP
,/,
who/WP
would/MD
become/VB
his/PRP$
partner/NN
in/IN
GNP/NNP
and/CC
other/JJ
ventures/NNS
./.
In/IN
1965/CD
,/,
he/PRP
and/CC
Mr./NNP
Rosenthal/NNP
set/VBD
up/RP
what/WP
would/MD
become/VB
Indecon/NNP
Inc./NNP
,/,
a/DT
computer/NN
processing/NN
firm/NN
./.
An/DT
early/JJ
offshoot/NN
was/VBD
their/PRP$
computerized/JJ
tip/NN
sheet/NN
for/IN
harness/NN
racing/NN
--/:
cranked/VBN
out/RP
using/VBG
``/``
the/DT
same/JJ
type/NN
of/IN
equipment/NN
used/VBN
in/IN
important/JJ
space/NN
research/NN
and/CC
big/JJ
business/NN
,/,
''/''
Mr./NNP
Monieson/NNP
told/VBD
subscribers/NNS
./.
Programming/NN
unexpectedly/RB
led/VBD
him/PRP
into/IN
trading/NN
in/IN
the/DT
early/JJ
1970s/NNS
when/WRB
a/DT
customer/NN
,/,
a/DT
pork/NN
processor/NN
,/,
commissioned/VBD
a/DT
computer/NN
program/NN
on/IN
the/DT
supply/NN
and/CC
demand/NN
of/IN
bacon/NN
,/,
but/CC
never/RB
used/VBD
the/DT
program/NN
./.
Mr./NNP
Monieson/NNP
and/CC
Mr./NNP
Rosenthal/NNP
got/VBD
together/RB
$/$
50,000/CD
and/CC
started/VBD
trading/VBG
pork/NN
belly/NN
futures/NNS
at/IN
the/DT
Merc/NNP
based/VBN
on/IN
the/DT
program/NN
's/POS
predictions/NNS
./.
They/PRP
formed/VBD
GNP/NNP
in/IN
1973/CD
not/RB
out/IN
of/IN
any/DT
desire/NN
to/TO
run/VB
a/DT
futures/NNS
clearing/NN
firm/NN
,/,
Mr./NNP
Monieson/NNP
says/VBZ
,/,
but/CC
because/IN
they/PRP
were/VBD
tired/JJ
of/IN
paying/VBG
brokerage/NN
commissions/NNS
./.
A/DT
decade/NN
later/RB
,/,
GNP/NNP
was/VBD
trading/VBG
all/RB
over/IN
the/DT
Merc/NNP
floor/NN
,/,
mostly/RB
in/IN
financial/JJ
futures/NNS
./.
Yet/CC
pork/NN
bellies/NNS
still/RB
held/VBD
a/DT
fascination/NN
for/IN
Mr./NNP
Monieson/NNP
,/,
and/CC
his/PRP$
trading/NN
in/IN
that/DT
pit/NN
would/MD
earn/VB
him/PRP
a/DT
dubious/JJ
distinction/NN
:/:
the/DT
only/JJ
Merc/NNP
chairman/NN
to/TO
be/VB
found/VBN
guilty/JJ
of/IN
committing/VBG
trading/NN
violations/NNS
while/IN
running/VBG
the/DT
exchange/NN
./.
Mr./NNP
Monieson/NNP
and/CC
Mr./NNP
Rosenthal/NNP
were/VBD
fined/VBN
,/,
$/$
10,000/CD
and/CC
$/$
70,000/CD
respectively/RB
,/,
for/IN
taking/VBG
speculative/JJ
positions/NNS
beyond/IN
the/DT
exchange/NN
's/POS
limits/NNS
./.
Mr./NNP
Rosenthal/NNP
's/POS
fine/NN
was/VBD
bigger/JJR
because/IN
he/PRP
allegedly/RB
had/VBD
exceeded/VBN
position/NN
limits/NNS
before/RB
./.
Mr./NNP
Monieson/NNP
,/,
likening/VBG
the/DT
fine/NN
to/TO
``/``
a/DT
parking/NN
ticket/NN
,/,
''/''
says/VBZ
he/PRP
did/VBD
violate/VB
the/DT
rules/NNS
but/CC
contends/VBZ
the/DT
position/NN
limits/NNS
are/VBP
set/VBN
too/RB
low/RB
for/IN
today/NN
's/POS
trading/NN
environment/NN
./.
Three/CD
associates/NNS
held/VBD
pork/NN
belly/NN
positions/NNS
nearly/RB
identical/JJ
to/TO
those/DT
of/IN
the/DT
GNP/NNP
owners/NNS
and/CC
appeared/VBD
to/TO
be/VB
acting/VBG
at/IN
their/PRP$
direction/NN
,/,
according/VBG
to/TO
an/DT
internal/JJ
Merc/NNP
account/NN
of/IN
the/DT
case/NN
./.
A/DT
company/NN
controlled/VBN
by/IN
Mr./NNP
Monieson/NNP
and/CC
Mr./NNP
Rosenthal/NNP
lent/VBD
the/DT
other/JJ
traders/NNS
more/JJR
than/IN
$/$
6.5/CD
million/CD
to/TO
help/VB
finance/VB
the/DT
trades/NNS
./.
One/CD
of/IN
the/DT
associates/NNS
was/VBD
Norman/NNP
Furlett/NNP
,/,
a/DT
GNP/NNP
salesman/NN
and/CC
one/CD
of/IN
Mr./NNP
Monieson/NNP
's/POS
closest/JJS
friends/NNS
./.
Mr./NNP
Furlett/NNP
's/POS
job/NN
was/VBD
to/TO
call/VB
up/RP
investors/NNS
and/CC
get/VB
them/PRP
to/TO
trade/VB
futures/NNS
./.
GNP/NNP
got/VBD
a/DT
commission/NN
./.
Ira/NNP
P./NNP
Greenspon/NNP
was/VBD
in/IN
the/DT
same/JJ
line/NN
of/IN
work/NN
,/,
and/CC
in/IN
October/NNP
1985/CD
joined/VBD
GNP/NNP
./.
What/WP
GNP/NNP
did/VBD
n't/RB
know/VB
was/VBD
that/IN
Mr./NNP
Greenspon/NNP
already/RB
was/VBD
under/IN
investigation/NN
by/IN
the/DT
CFTC/NNP
for/IN
alleged/JJ
trade/NN
allocating/NN
at/IN
his/PRP$
previous/JJ
firm/NN
./.
The/DT
CFTC/NNP
later/RB
concluded/VBD
that/IN
Mr./NNP
Furlett/NNP
had/VBD
been/VBN
allocating/VBG
trades/NNS
as/RB
well/RB
./.
According/VBG
to/TO
separate/JJ
Merc/NNP
charges/NNS
against/IN
the/DT
two/CD
men/NNS
and/CC
GNP/NNP
,/,
which/WDT
have/VBP
n't/RB
been/VBN
made/VBN
public/JJ
,/,
during/IN
the/DT
first/JJ
two/CD
months/NNS
of/IN
1986/CD
,/,
accounts/VBZ
they/PRP
maintained/VBD
,/,
including/VBG
one/CD
named/VBN
Horse/NNP
Trading/NNP
,/,
had/VBD
profits/NNS
of/IN
$/$
62,372.95/CD
./.
Four/CD
customer/NN
accounts/NNS
the/DT
Merc/NNP
reviewed/VBD
had/VBD
combined/JJ
losses/NNS
of/IN
$/$
20.988.12/CD
for/IN
those/DT
months/NNS
./.
Robert/NNP
L./NNP
Sutermeister/NNP
,/,
a/DT
retired/JJ
trucking/NN
company/NN
owner/NN
in/IN
Dayton/NNP
,/,
Ohio/NNP
,/,
says/VBZ
he/PRP
lost/VBD
nearly/RB
all/DT
of/IN
the/DT
$/$
10,000/CD
he/PRP
sent/VBD
the/DT
brokers/NNS
./.
Larry/NNP
Margler/NNP
,/,
a/DT
McKinleyville/NNP
,/,
Ca./NNP
,/,
engineer/NN
,/,
says/VBZ
he/PRP
lost/VBD
about/RB
$/$
3,000/CD
of/IN
the/DT
$/$
5,000/CD
he/PRP
turned/VBD
over/RP
to/TO
Mr./NNP
Furlett/NNP
./.
Between/IN
June/NNP
1985/CD
and/CC
May/MD
1986/CD
,/,
the/DT
CFTC/NNP
alleges/VBZ
,/,
Mr./NNP
Monieson/NNP
was/VBD
warned/VBN
by/IN
at/IN
least/JJS
five/CD
GNP/NNP
employees/NNS
that/IN
Mr./NNP
Furlett/NNP
and/CC
Mr./NNP
Greenspon/NNP
were/VBD
defrauding/VBG
customers/NNS
./.
After/IN
the/DT
Banque/NNP
Indosuez/NNP
deal/NN
collapsed/VBD
in/IN
January/NNP
1987/CD
,/,
the/DT
two/CD
salesmen/NNS
left/VBD
GNP/NNP
./.
Their/PRP$
attorney/NN
,/,
James/NNP
Koch/NNP
,/,
says/VBZ
they/PRP
deny/VBP
any/DT
wrongdoing/NN
and/CC
that/IN
both/DT
men/NNS
have/VBP
agreed/VBN
to/TO
leave/VB
the/DT
futures/NNS
industry/NN
./.
Two/CD
New/NNP
England/NNP
banks/NNS
reported/VBD
substantial/JJ
third-quarter/JJ
net/JJ
losses/NNS
,/,
reflecting/VBG
the/DT
continuing/VBG
woes/NNS
of/IN
the/DT
region/NN
's/POS
developers/NNS
and/CC
lenders/NNS
./.
One/CD
Bancorp/NNP
,/,
Portland/NNP
,/,
Maine/NNP
,/,
buffeted/VBN
by/IN
loan/NN
write-downs/NNS
and/CC
expanded/JJ
loss/NN
reserves/NNS
,/,
reported/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
48.5/CD
million/CD
,/,
or/CC
$/$
5.92/CD
a/DT
share/NN
./.
In/IN
the/DT
year-earlier/JJ
period/NN
,/,
the/DT
bank/NN
holding/NN
company/NN
reported/VBD
net/JJ
income/NN
of/IN
$/$
523,000/CD
,/,
or/CC
six/CD
cents/NNS
a/DT
share/NN
./.
Holyoke/NNP
,/,
Mass.-based/JJ
Heritage/NNP
Bancorp/NNP
,/,
also/RB
hurt/VBN
by/IN
the/DT
depressed/JJ
New/NNP
England/NNP
real/JJ
estate/NN
market/NN
,/,
reported/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
8.9/CD
million/CD
,/,
or/CC
$/$
1.22/CD
a/DT
share/NN
,/,
compared/VBN
with/IN
net/JJ
income/NN
of/IN
$/$
3/CD
million/CD
,/,
or/CC
40/CD
cents/NNS
a/DT
share/NN
./.
One/CD
Bancorp/NNP
,/,
which/WDT
had/VBD
warned/VBN
that/IN
it/PRP
planned/VBD
to/TO
take/VB
a/DT
$/$
49.8/CD
million/CD
loan-loss/JJ
provision/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
said/VBD
it/PRP
expects/VBZ
things/NNS
to/TO
get/VB
worse/JJR
,/,
but/CC
more/RBR
slowly/RB
,/,
in/IN
the/DT
future/NN
./.
``/``
Barring/VBG
marked/JJ
and/CC
unanticipated/JJ
declines/NNS
in/IN
real/JJ
estate/NN
values/NNS
,/,
we/PRP
expect/VBP
our/PRP$
growth/NN
rates/NNS
of/IN
nonperforming/JJ
loans/NNS
to/TO
slow/VB
,/,
''/''
Vincent/NNP
E./NNP
Furey/NNP
Jr./NNP
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
said/VBD
./.
After/IN
taking/VBG
write-downs/NN
of/IN
about/RB
$/$
75/CD
million/CD
in/IN
the/DT
last/JJ
12/CD
months/NNS
,/,
he/PRP
said/VBD
the/DT
company/NN
is/VBZ
in/IN
position/NN
,/,
``/``
to/TO
address/VB
accelerated/JJ
disposal/NN
of/IN
problem/NN
assets/NNS
./.
''/''
One/CD
Bancorp/NNP
's/POS
primary/JJ
capital-to-asset/JJ
ratio/NN
is/VBZ
6.6/CD
%/NN
after/IN
third-quarter/JJ
charges/NNS
./.
Under/IN
federal/JJ
regulations/NNS
,/,
a/DT
6/CD
%/NN
ratio/NN
is/VBZ
the/DT
standard/NN
./.
However/RB
,/,
the/DT
company/NN
said/VBD
it/PRP
is/VBZ
n't/RB
in/IN
compliance/NN
with/IN
certain/JJ
standards/NNS
it/PRP
agreed/VBD
to/TO
last/JJ
fall/NN
in/IN
connection/NN
with/IN
two/CD
Massachusetts/NNP
acquisitions/NNS
./.
Mr./NNP
Furey/NNP
said/VBD
the/DT
company/NN
is/VBZ
working/VBG
to/TO
restore/VB
its/PRP$
capital/NN
ratio/NN
to/TO
regulatory/JJ
compliance/NN
and/CC
expects/VBZ
to/TO
reach/VB
an/DT
agreement/NN
with/IN
regulators/NNS
during/IN
the/DT
fourth/JJ
quarter/NN
./.
He/PRP
said/VBD
he/PRP
expects/VBZ
a/DT
formal/JJ
written/JJ
agreement/NN
documenting/VBG
One/NNP
Bancorp/NNP
's/POS
plan/NN
to/TO
reduce/VB
problem/NN
assets/NNS
and/CC
return/VB
to/TO
compliance/NN
./.
The/DT
third-quarter/JJ
loss/NN
reflected/VBD
a/DT
$/$
49.8/CD
million/CD
provision/NN
for/IN
loan/NN
losses/NNS
and/CC
write-downs/NN
of/IN
$/$
8.5/CD
million/CD
on/IN
foreclosed/VBN
real/JJ
estate/NN
./.
One/CD
Bancorp/NNP
said/VBD
its/PRP$
loan-loss/JJ
reserve/NN
of/IN
$/$
59.4/CD
million/CD
at/IN
Sept./NNP
30/CD
was/VBD
2.9/CD
%/NN
of/IN
loans/NNS
outstanding/JJ
and/CC
35/CD
%/NN
of/IN
$/$
170/CD
million/CD
in/IN
nonperforming/JJ
loans/NNS
./.
At/IN
June/NNP
30/CD
,/,
reserves/NNS
of/IN
$/$
52.2/CD
million/CD
were/VBD
2.4/CD
%/NN
of/IN
loans/NNS
outstanding/JJ
and/CC
35/CD
%/NN
of/IN
$/$
150/CD
million/CD
in/IN
nonperforming/JJ
loans/NNS
./.
Loan/NN
and/CC
real-estate/JJ
write-downs/NNS
have/VBP
reduced/VBN
$/$
195/CD
million/CD
in/IN
nonperforming/JJ
assets/NNS
by/IN
28/CD
%/NN
from/IN
their/PRP$
original/JJ
loan/NN
value/NN
,/,
One/NNP
Bancorp/NNP
said/VBD
./.
Nonperforming/JJ
assets/NNS
consist/VBP
of/IN
$/$
170/CD
million/CD
in/IN
nonperforming/JJ
loans/NNS
and/CC
$/$
25/CD
million/CD
in/IN
real/JJ
estate/NN
acquired/VBN
by/IN
agreement/NN
or/CC
foreclosure/NN
./.
As/IN
a/DT
result/NN
of/IN
the/DT
losses/NNS
,/,
stockholders/NNS
'/POS
equity/NN
declined/VBD
to/TO
$/$
76.6/CD
million/CD
,/,
or/CC
$/$
9.35/CD
a/DT
share/NN
,/,
at/IN
Sept./NNP
30/CD
,/,
from/IN
$/$
125.1/CD
million/CD
,/,
or/CC
$/$
15.27/CD
a/DT
share/NN
,/,
at/IN
June/NNP
30/CD
./.
For/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
1989/CD
,/,
net/JJ
losses/NNS
at/IN
One/NNP
Bancorp/NNP
totaled/VBD
$/$
74.5/CD
million/CD
,/,
or/CC
$/$
9.12/CD
a/DT
share/NN
,/,
compared/VBN
to/TO
net/JJ
income/NN
of/IN
$/$
9.7/CD
million/CD
,/,
or/CC
$/$
1.13/CD
a/DT
share/NN
,/,
in/IN
the/DT
year-earlier/JJ
period/NN
./.
Heritage/NNP
Bancorp/NNP
said/VBD
it/PRP
added/VBD
$/$
17/CD
million/CD
to/TO
its/PRP$
loan-loss/JJ
reserve/NN
,/,
making/VBG
the/DT
reserve/NN
$/$
24.7/CD
million/CD
or/CC
1.6/CD
%/NN
of/IN
total/JJ
loans/NNS
and/CC
35/CD
%/NN
of/IN
nonperforming/JJ
loans/NNS
./.
Nonperforming/JJ
loans/NNS
increased/VBD
from/IN
$/$
32.2/CD
million/CD
as/IN
of/IN
June/NNP
30/CD
,/,
1988/CD
,/,
to/TO
$/$
69.6/CD
million/CD
as/IN
of/IN
Sept./NNP
30/CD
,/,
1989/CD
./.
Assets/NNS
at/IN
Sept./NNP
30/CD
totaled/VBD
$/$
1.73/CD
billion/CD
./.
Chairman/NNP
Richard/NNP
B./NNP
Covell/NNP
said/VBD
he/PRP
expects/VBZ
that/DT
Heritage/NNP
will/MD
rebound/VB
in/IN
the/DT
fourth/JJ
quarter/NN
and/CC
return/VB
to/TO
a/DT
positive/JJ
mode/NN
of/IN
operation/NN
in/IN
1990/CD
./.
``/``
We/PRP
are/VBP
aggressively/RB
pursuing/VBG
workout/NN
strategies/NNS
with/IN
respect/NN
to/TO
nonperforming/JJ
assets/NNS
in/IN
an/DT
effort/NN
to/TO
resolve/VB
these/DT
problems/NNS
as/RB
expeditiously/RB
as/IN
possible/JJ
,/,
while/IN
simultaneously/RB
minimizing/VBG
losses/NNS
to/TO
the/DT
company/NN
,/,
''/''
he/PRP
said/VBD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Heritage/NNP
reported/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
10.9/CD
million/CD
,/,
or/CC
$/$
1.49/CD
a/DT
share/NN
,/,
compared/VBN
to/TO
net/JJ
income/NN
of/IN
$/$
8.3/CD
million/CD
,/,
or/CC
$/$
1.12/CD
a/DT
share/NN
./.
McDonald/NNP
's/POS
Corp./NN
,/,
under/IN
pressure/NN
by/IN
environmental/JJ
groups/NNS
to/TO
stop/VB
using/VBG
polystyrene/NN
containers/NNS
,/,
announced/VBD
a/DT
program/NN
here/RB
to/TO
foster/VB
recycling/NN
of/IN
the/DT
plastics/NNS
at/IN
450/CD
of/IN
its/PRP$
New/NNP
England/NNP
restaurants/NNS
./.
Environmentalists/NNS
,/,
however/RB
,/,
attacked/VBD
McDonald/NNP
's/POS
program/NN
as/IN
a/DT
public/JJ
relations/NNS
ploy/NN
and/CC
the/DT
wrong/JJ
way/NN
to/TO
address/VB
the/DT
nation/NN
's/POS
garbage/NN
crisis/NN
./.
Under/IN
the/DT
program/NN
,/,
McDonald/NNP
's/POS
restaurants/NNS
will/MD
be/VB
equipped/VBN
with/IN
recycling/NN
bins/NNS
for/IN
plastic/NN
items/NNS
and/CC
with/IN
posters/NNS
encouraging/VBG
customers/NNS
to/TO
use/VB
them/PRP
,/,
the/DT
company/NN
said/VBD
./.
The/DT
plastic/NN
will/MD
be/VB
sent/VBN
to/TO
a/DT
plant/NN
in/IN
Leominster/NNP
,/,
Mass./NNP
,/,
near/IN
Boston/NNP
,/,
which/WDT
is/VBZ
owned/VBN
by/IN
a/DT
joint/JJ
venture/NN
recently/RB
formed/VBN
by/IN
plastics/NNS
makers/NNS
./.
It/PRP
then/RB
will/MD
be/VB
processed/VBN
into/IN
plastic/NN
pellets/NNS
for/IN
use/NN
in/IN
making/VBG
products/NNS
such/JJ
as/IN
trash/NN
cans/NNS
,/,
flower/NN
pots/NNS
and/CC
food/NN
trays/NNS
,/,
but/CC
not/RB
food/NN
containers/NNS
,/,
McDonald/NNP
's/POS
said/VBD
./.
The/DT
program/NN
will/MD
reduce/VB
trash/NN
,/,
help/VB
educate/VB
youngsters/NNS
about/IN
recycling/NN
and/CC
``/``
is/VBZ
a/DT
big/JJ
step/NN
toward/IN
a/DT
better/JJR
environment/NN
,/,
''/''
asserted/VBD
Shelby/NNP
Yastrow/NNP
,/,
McDonald/NNP
's/POS
senior/JJ
vice/NN
president/NN
,/,
environmental/JJ
affairs/NNS
./.
However/RB
,/,
it/PRP
will/MD
be/VB
a/DT
small/JJ
step/NN
for/IN
McDonald/NNP
's/POS
as/IN
a/DT
whole/NN
./.
The/DT
program/NN
will/MD
include/VB
4/CD
%/NN
of/IN
the/DT
company/NN
's/POS
11,000/CD
restaurants/NNS
./.
And/CC
because/IN
many/JJ
customers/NNS
wo/MD
n't/RB
participate/VB
,/,
such/JJ
as/IN
people/NNS
who/WP
drive/VBP
through/RB
,/,
it/PRP
is/VBZ
likely/JJ
that/IN
less/JJR
than/IN
2/CD
%/NN
of/IN
the/DT
company/NN
's/POS
plastic/NN
containers/NNS
will/MD
be/VB
recycled/VBN
under/IN
the/DT
program/NN
./.
McDonald/NNP
's/VBZ
said/VBD
it/PRP
plans/VBZ
to/TO
expand/VB
the/DT
program/NN
when/WRB
and/CC
if/IN
more/JJR
plastic/NN
recycling/NN
plants/NNS
are/VBP
built/VBN
near/IN
its/PRP$
restaurants/NNS
./.
The/DT
plant/NN
in/IN
Leominster/NNP
is/VBZ
the/DT
first/JJ
of/IN
five/CD
planned/VBN
by/IN
the/DT
National/NNP
Polystyrene/NNP
Recycling/NNP
Co./NNP
,/,
the/DT
plastics-industry/NN
joint/JJ
venture/NN
./.
It/PRP
was/VBD
formed/VBN
earlier/RBR
this/DT
year/NN
by/IN
Dow/NNP
Chemical/NNP
Co./NNP
,/,
Mobil/NNP
Corp./NNP
and/CC
six/CD
other/JJ
concerns/NNS
in/IN
response/NN
to/TO
concerns/NNS
about/IN
growing/VBG
amounts/NNS
of/IN
non-biodegradable/JJ
plastic/NN
trash/NN
./.
Paul/NNP
Keough/NNP
,/,
acting/VBG
regional/JJ
director/NN
for/IN
the/DT
Environmental/NNP
Protection/NNP
Agency/NNP
in/IN
Boston/NNP
,/,
said/VBD
,/,
``/``
We/PRP
hope/VBP
that/IN
other/JJ
large/JJ
companies/NNS
follow/VBP
McDonald/NNP
's/POS
lead/NN
to/TO
undertake/VB
similar/JJ
programs/NNS
./.
''/''
But/CC
Amy/NNP
Perry/NNP
,/,
a/DT
spokeswoman/NN
for/IN
the/DT
Massachusetts/NNP
Public/NNP
Interest/NNP
Research/NNP
Group/NNP
,/,
a/DT
Boston/NNP
offshoot/NN
of/IN
Ralph/NNP
Nader/NNP
's/POS
lobbying/NN
outfits/NN
,/,
argued/VBD
that/IN
the/DT
program/NN
``/``
just/RB
serves/VBZ
to/TO
legitimize/VB
increasing/VBG
the/DT
use/NN
of/IN
throwaway/JJ
plastics/NNS
./.
It/PRP
would/MD
be/VB
far/RB
better/JJR
for/IN
McDonald/NNP
's/POS
to/TO
use/VB
durable/JJ
goods/NNS
that/WDT
could/MD
be/VB
reused/VBN
for/IN
serving/VBG
food/NN
the/DT
throwaway/JJ
society/NN
./.
''/''
Last/JJ
year/NN
,/,
a/DT
network/NN
of/IN
environmental/JJ
groups/NNS
commenced/VBD
a/DT
``/``
McToxics/NNP
Campaign/NNP
''/''
to/TO
pressure/VB
McDonald/NNP
's/VBZ
to/TO
stop/VB
using/VBG
polystyrene/NN
./.
Among/IN
other/JJ
things/NNS
,/,
the/DT
groups/NNS
have/VBP
urged/VBN
consumers/NNS
to/TO
mail/VB
used/JJ
McDonald/NNP
's/POS
plastic/NN
containers/NNS
to/TO
its/PRP$
Oak/NNP
Brook/NNP
,/,
Ill./NNP
,/,
headquarters/NN
./.
Concerns/NNS
about/IN
plastic/NN
trash/NN
also/RB
have/VBP
sparked/VBN
legislative/JJ
initiatives/NNS
,/,
such/JJ
as/IN
one/CD
in/IN
Berkeley/NNP
,/,
Calif./NNP
,/,
to/TO
ban/VB
polystyrene/NN
products/NNS
as/IN
of/IN
January/NNP
./.
Such/JJ
laws/NNS
are/VBP
causing/VBG
major/JJ
headaches/NNS
for/IN
companies/NNS
like/IN
McDonald/NNP
's/POS
,/,
which/WDT
increasingly/RB
must/MD
wrestle/VB
with/IN
different/JJ
local/JJ
rules/NNS
across/IN
the/DT
nation/NN
./.
``/``
Political/JJ
pressure/NN
has/VBZ
been/VBN
a/DT
factor/NN
''/''
in/IN
the/DT
introduction/NN
of/IN
recycling/NN
programs/NNS
by/IN
plastics/NNS
makers/NNS
and/CC
sellers/NNS
,/,
conceded/VBD
Ken/NNP
Harman/NNP
,/,
National/NNP
Polystyrene/NNP
's/POS
acting/VBG
president/NN
and/CC
chairman/NN
,/,
at/IN
the/DT
news/NN
conference/NN
,/,
which/WDT
was/VBD
held/VBN
in/IN
a/DT
McDonald/NNP
's/POS
restaurant/NN
next/RB
to/TO
Boston/NNP
's/POS
Children/NNP
's/POS
Museum/NNP
./.
Some/DT
of/IN
the/DT
pressure/NN
became/VBD
evident/JJ
during/IN
the/DT
news/NN
conference/NN
when/WRB
a/DT
McDonald/NNP
's/POS
customer/NN
startled/VBD
company/NN
officials/NNS
by/IN
blurting/VBG
out/RP
,/,
``/``
Why/WRB
do/VBP
you/PRP
produce/VB
so/RB
much/JJ
trash/NN
in/IN
the/DT
first/JJ
place/NN
?/.
''/''
The/DT
customer/NN
,/,
Jeff/NNP
Simpson/NNP
,/,
a/DT
visitor/NN
from/IN
London/NNP
,/,
later/RB
explained/VBD
that/IN
he/PRP
was/VBD
vexed/JJ
by/IN
all/PDT
the/DT
plastic/NN
,/,
paper/NN
and/CC
cardboard/NN
that/WDT
came/VBD
with/IN
the/DT
McDonald/NNP
's/POS
breakfast/NN
he/PRP
had/VBD
just/RB
eaten/VBN
./.
The/DT
recycling/NN
program/NN
``/``
is/VBZ
laudable/JJ
,/,
''/''
he/PRP
said/VBD
,/,
``/``
but/CC
why/WRB
not/RB
use/VB
china/NN
plates/NNS
?/.
''/''
The/DT
current/JJ
debate/NN
over/IN
reinvigorating/VBG
individual/JJ
retirement/NN
accounts/NNS
boils/VBZ
down/RP
to/TO
this/DT
:/:
Would/MD
you/PRP
prefer/VB
your/PRP$
tax/NN
break/NN
as/IN
an/DT
appetizer/NN
or/CC
as/IN
dessert/NN
?/.
Democrats/NNPS
would/MD
give/VB
taxpayers/NNS
an/DT
immediate/JJ
incentive/NN
to/TO
sock/VB
away/RP
more/JJR
savings/NNS
:/:
Save/VB
$/$
2,000/CD
,/,
and/CC
you/PRP
can/MD
deduct/VB
$/$
1,000/CD
on/IN
your/PRP$
tax/NN
return/NN
./.
Republicans/NNPS
would/MD
defer/VB
the/DT
tax/NN
break/NN
:/:
Save/VB
$/$
2,000/CD
,/,
and/CC
you/PRP
'll/MD
escape/VB
taxes/NNS
on/IN
all/PDT
the/DT
interest/NN
that/DT
sum/NN
earns/VBZ
over/IN
the/DT
years/NNS
till/IN
you/PRP
retire/VBP
./.
Addressing/VBG
the/DT
nation/NN
's/POS
savings/NNS
shortage/NN
is/VBZ
once/RB
again/RB
politically/RB
fashionable/JJ
./.
And/CC
there/EX
is/VBZ
ample/JJ
reason/NN
for/IN
concern/NN
./.
The/DT
dearth/NN
of/IN
savings/NNS
limits/NNS
the/DT
resources/NNS
available/JJ
for/IN
investment/NN
in/IN
the/DT
future/NN
and/CC
forces/VBZ
the/DT
U.S./NNP
to/TO
import/VB
foreign/JJ
savings/NNS
./.
But/CC
some/DT
economists/NNS
suggest/VBP
the/DT
politicians/NNS
'/POS
new/JJ
infatuation/NN
with/IN
IRAs/NNS
may/MD
be/VB
misplaced/VBN
at/IN
a/DT
time/NN
when/WRB
Congress/NNP
and/CC
the/DT
president/NN
are/VBP
n't/RB
taking/VBG
the/DT
more/RBR
important/JJ
step/NN
of/IN
shrinking/VBG
the/DT
federal/JJ
budget/NN
deficit/NN
./.
``/``
If/IN
increasing/VBG
savings/NNS
is/VBZ
the/DT
object/NN
,/,
''/''
says/VBZ
economist/NN
Jane/NNP
Gravelle/NNP
of/IN
the/DT
Congressional/NNP
Research/NNP
Service/NNP
,/,
``/``
a/DT
reduction/NN
in/IN
the/DT
deficit/NN
would/MD
be/VB
a/DT
more/RBR
certain/JJ
and/CC
more/RBR
powerful/JJ
way/NN
of/IN
achieving/VBG
such/PDT
an/DT
end/NN
./.
''/''
(/(
The/DT
nation/NN
's/POS
total/JJ
savings/NN
is/VBZ
what/WP
's/VBZ
left/VBN
after/IN
substracting/VBG
government/NN
borrowing/NN
from/IN
household/NN
and/CC
corporate/JJ
savings/NNS
./.
The/DT
differences/NNS
between/IN
the/DT
two/CD
IRA/NN
alternatives/NNS
involve/VBP
more/JJR

than/IN
partisan/JJ
manuevering/NN
--/:
although/IN
there/EX
's/VBZ
plenty/NN
of/IN
that/DT
./.
The/DT
shortcoming/NN
of/IN
offering/VBG
immediate/JJ
rewards/NNS
for/IN
putting/VBG
money/NN
in/IN
an/DT
IRA/NN
,/,
as/IN
the/DT
Democrats/NNPS
propose/VBP
,/,
is/VBZ
that/IN
it/PRP
will/MD
widen/VB
the/DT
budget/NN
deficit/NN
by/IN
an/DT
estimated/JJ
$/$
12.5/CD
billion/CD
over/IN
the/DT
next/JJ
five/CD
years/NNS
./.
``/``
The/DT
big/JJ
problem/NN
is/VBZ
the/DT
up-front/JJ
cost/NN
,/,
''/''
says/VBZ
Sen./NNP
William/NNP
Roth/NNP
R./NNP
,/,
Del./NNP
chief/JJ
Republican/JJ
cheerleader/NN
for/IN
IRAs/NNS
./.
The/DT
shortcomings/NNS
of/IN
delaying/VBG
the/DT
reward/NN
,/,
as/IN
Sen./NNP
Roth/NNP
and/CC
Sen./NNP
Robert/NNP
Packwood/NNP
R./NNP
,/,
Ore/NNP
./.
it/PRP
may/MD
not/RB
boost/VB
savings/NNS
much/RB
and/CC
,/,
if/IN
it/PRP
does/VBZ
,/,
it/PRP
may/MD
widen/VB
deficits/NNS
in/IN
the/DT
future/NN
./.
``/``
It/PRP
looks/VBZ
like/IN
you/PRP
have/VBP
n't/RB
given/VBN
anything/NN
away/RP
,/,
but/CC
five/CD
,/,
10/CD
,/,
20/CD
,/,
40/CD
years/NNS
later/RB
,/,
little/JJ
bomblets/NNS
go/VBP
off/RP
,/,
''/''
says/VBZ
Henry/NNP
Aaron/NNP
,/,
a/DT
Brookings/NNP
Institution/NNP
economist/NN
./.
Although/IN
IRA/NN
fans/NNS
in/IN
Congress/NNP
have/VBP
been/VBN
talking/VBG
about/IN
restoring/VBG
incentives/NNS
that/WDT
were/VBD
curtailed/VBN
in/IN
1986/CD
,/,
they/PRP
gained/VBD
momentum/NN
only/RB
after/IN
Senate/NNP
Finance/NNP
Committee/NNP
Chairman/NNP
Lloyd/NNP
Bentsen/NNP
D./NNP
,/,
Texas/NNP
IRAs/NNS
as/IN
an/DT
alternative/NN
to/TO
cutting/VBG
capital-gains/NNS
taxes/NNS
./.
Republican/JJ
senators/NNS
,/,
unwilling/JJ
to/TO
concede/VB
the/DT
popular/JJ
IRA/NN
issue/NN
to/TO
Democrats/NNPS
,/,
suddenly/RB
embraced/VBD
a/DT
scheme/NN
Sen./NNP
Roth/NNP
had/VBD
been/VBN
pressing/VBG
with/IN
little/JJ
success/NN
./.
The/DT
Bush/NNP
administration/NN
,/,
which/WDT
was/VBD
planning/VBG
to/TO
unveil/VB
an/DT
IRA/NN
proposal/NN
of/IN
its/PRP$
own/JJ
next/JJ
year/NN
,/,
was/VBD
quick/JJ
to/TO
do/VB
the/DT
same/JJ
./.
Both/DT
proposals/NNS
would/MD
allow/VB
withdrawals/NNS
not/RB
only/RB
for/IN
retirement/NN
,/,
but/CC
also/RB
for/IN
buying/VBG
a/DT
house/NN
or/CC
paying/VBG
tuition/NN
bills/NNS
./.
Between/IN
1981/CD
and/CC
1986/CD
,/,
any/DT
worker/NN
could/MD
put/VB
$/$
2,000/CD
a/DT
year/NN
into/IN
an/DT
IRA/NN
and/CC
deduct/VB
that/DT
sum/NN
from/IN
his/PRP$
taxable/JJ
income/NN
./.
As/IN
banks/NNS
and/CC
mutual/JJ
funds/NNS
advertised/VBD
heavily/RB
,/,
hundreds/NNS
of/IN
billions/NNS
of/IN
dollars/NNS
flowed/VBD
into/IN
the/DT
accounts/NNS
./.
Economists/NNS
still/RB
disagree/VBP
on/IN
how/WRB
much/JJ
was/VBD
new/JJ
savings/NNS
and/CC
how/WRB
much/RB
was/VBD
shifts/NNS
of/IN
existing/JJ
savings/NNS
by/IN
taxpayers/NNS
in/IN
order/NN
to/TO
cut/VB
their/PRP$
tax/NN
bill/NN
./.
Economist/NNP
David/NNP
Wise/NNP
of/IN
Harvard/NNP
University/NNP
figures/VBZ
70/CD
%/NN
was/VBD
actually/RB
new/JJ
savings/NNS
;/:
many/JJ
prominent/JJ
economists/NNS
--/:
including/VBG
Michael/NNP
Boskin/NNP
,/,
chairman/NN
of/IN
the/DT
Council/NNP
of/IN
Economic/NNP
Advisers/NNP
--/:
agree/VBP
that/IN
IRAs/NNS
did/VBD
result/NN
in/IN
significant/JJ
new/JJ
savings/NNS
./.
But/CC
Mr./NNP
Aaron/NNP
,/,
among/IN
others/NNS
,/,
continues/VBZ
to/TO
insist/VB
that/IN
the/DT
data/NNS
are/VBP
inconclusive/JJ
./.
And/CC
Robert/NNP
McIntyre/NNP
,/,
director/NN
of/IN
the/DT
labor-backed/JJ
Citizens/NNP
for/IN
Tax/NNP
Justice/NNP
and/CC
an/DT
admirer/NN
of/IN
the/DT
1986/CD
Tax/NNP
Reform/NNP
Act/NNP
that/IN
limited/VBD
IRAs/NNS
,/,
goes/VBZ
further/RB
./.
``/``
They/PRP
do/VBP
n't/RB
work/VB
,/,
''/''
he/PRP
contends/VBZ
./.
``/``
They/PRP
just/RB
give/VB
people/NNS
a/DT
tax/NN
break/NN
for/IN
savings/NNS
they/PRP
would/MD
have/VB
done/VBN
anyway/RB
./.
''/''
In/IN
any/DT
event/NN
,/,
IRA/NN
contributions/NNS
fell/VBD
sharply/RB
after/IN
the/DT
1986/CD
law/NN
that/WDT
restricted/VBD
the/DT
full/JJ
tax/NN
break/NN
to/TO
couples/NNS
earning/VBG
less/JJR
than/IN
$/$
40,000/CD
a/DT
year/NN
and/CC
individuals/NNS
earning/VBG
less/JJR
than/IN
$/$
25,000/CD
./.
Balances/NNP
in/IN
IRA/NN
and/CC
Keogh/NNP
accounts/NNS
retirement/NN
accounts/NNS
for/IN
the/DT
self-employed/JJ
which/WDT
had/VBD
swelled/VBN
by/IN
$/$
75/CD
billion/CD
in/IN
1986/CD
,/,
grew/VBD
by/IN
only/RB
$/$
48/CD
billion/CD
in/IN
1988/CD
,/,
including/VBG
interest/NN
on/IN
past/JJ
contributions/NNS
./.
It/PRP
is/VBZ
n't/RB
clear/JJ
how/WRB
Americans/NNPS
would/MD
react/VB
to/TO
the/DT
new/JJ
IRA/NN
proposals/NNS
because/IN
they/PRP
are/VBP
so/RB
different/JJ
from/IN
the/DT
old/JJ
scheme/NN
./.
Some/DT
economists/NNS
predict/VBP
any/DT
IRA/NN
plan/NN
will/MD
boost/VB
savings/NNS
because/IN
brokerage/NN
houses/NNS
,/,
mutual/JJ
funds/NNS
and/CC
banks/NNS
will/MD
advertise/VB
them/PRP
heavily/RB
./.
``/``
It/PRP
may/MD
well/RB
be/VB
that/DT
saving/NN
,/,
like/IN
life/NN
insurance/NN
,/,
is/VBZ
sold/VBN
,/,
not/RB
bought/VBN
,/,
''/''
says/VBZ
Lawrence/NNP
Summers/NNP
of/IN
Harvard/NNP
University/NNP
./.
He/PRP
notes/VBZ
that/IN
as/IN
IRA/NN
ads/NNS
vanished/VBD
,/,
even/RB
many/JJ
middle-income/JJ
Americans/NNPS
still/RB
eligible/NN
for/IN
the/DT
full/JJ
IRA/NN
tax/NN
break/NN
stopped/VBD
contributing/VBG
./.
Comparing/VBG
the/DT
two/CD
proposals/NNS
on/IN
the/DT
table/NN
,/,
many/JJ
economists/NNS
say/VBP
a/DT
rational/JJ
person/NN
ought/MD
to/TO
prefer/VB
the/DT
Republican/JJ
version/NN
because/IN
it/PRP
offers/VBZ
a/DT
much/RB
bigger/JJR
tax/NN
break/NN
./.
Under/IN
the/DT
Democratic/JJ
plan/NN
,/,
a/DT
40-year-old/JJ
in/IN
the/DT
33/CD
%/NN
tax/NN
bracket/NN
who/WP
saves/VBZ
$/$
2,000/CD
in/IN
an/DT
IRA/NN
would/MD
cut/VB
his/PRP$
tax/NN
bill/NN
by/IN
$/$
175/CD
immediately/RB
./.
When/WRB
he/PRP
retires/VBZ
25/CD
years/NNS
later/RB
,/,
his/PRP$
$/$
2,000/CD
--/:
assuming/VBG
it/PRP
were/VBD
invested/VBN
at/IN
5/CD
%/NN
--/:
would/MD
be/VB
worth/JJ
$/$
6,773/CD
./.
But/CC
$/$
5,773/CD
of/IN
that/WDT
would/MD
be/VB
taxed/VBN
when/WRB
withdrawn/VBN
from/IN
the/DT
Republicans/NNPS
would/MD
n't/RB
give/VB
any/DT
up-front/JJ
deduction/NN
for/IN
depositing/VBG
$/$
2,000/CD
in/IN
the/DT
IRA/NN
./.
But/CC
at/IN
retirement/NN
25/CD
years/NNS
later/RB
,/,
the/DT
entire/JJ
$/$
4,773/CD
in/IN
interest/NN
could/MD
be/VB
withdrawn/VBN
taxfree/JJ
,/,
along/IN
with/IN
the/DT
already/RB
taxed/VBN
$/$
2,000/CD
initial/JJ
contribution/NN
./.
Nonetheless/RB
,/,
some/DT
economists/NNS
argue/VBP
that/IN
Americans/VBP
simply/RB
wo/MD
n't/RB
save/VB
unless/IN
the/DT
government/NN
gives/VBZ
them/PRP
an/DT
immediate/JJ
reward/NN
./.
``/``
This/DT
instant/JJ
gratification/NN
overcomes/VBZ
the/DT
usual/JJ
bias/NN
against/IN
savings/NNS
,/,
''/''
says/VBZ
John/NNP
Skinner/NNP
,/,
a/DT
University/NNP
of/IN
Virginia/NNP
economist/NN
./.
The/DT
clincher/NN
,/,
he/PRP
says/VBZ
,/,
is/VBZ
that/IN
people/NNS
who/WP
owed/VBD
money/NN
to/TO
the/DT
Internal/NNP
Revenue/NNP
Service/NNP
were/VBD
far/RB
more/RBR
likely/JJ
to/TO
put/VB
money/NN
in/IN
an/DT
IRA/NN
than/IN
those/DT
who/WP
were/VBD
due/JJ
a/DT
refund/NN
./.
On/IN
the/DT
other/JJ
hand/NN
,/,
the/DT
case/NN
for/IN
delayed/JJ
gratification/NN
is/VBZ
bolstered/VBN
by/IN
evidence/NN
that/IN
a/DT
surprising/JJ
number/NN
of/IN
upper-income/JJ
Americans/NNPS
still/RB
are/VBP
putting/VBG
money/NN
in/IN
IRAs/NNS
even/RB
though/IN
the/DT
only/JJ
tax/NN
break/NN
is/VBZ
deferring/VBG
tax/NN
on/IN
the/DT
interest/NN
the/DT
contributions/NNS
earn/VBP
./.
The/DT
Employee/NNP
Benefit/NNP
Research/NNP
Institute/NNP
says/VBZ
about/RB
23/CD
%/NN
of/IN
all/DT
workers/NNS
earning/VBG
more/JJR
than/IN
$/$
50,000/CD
a/DT
year/NN
made/VBD
IRA/NN
deposits/NNS
in/IN
1987/CD
,/,
down/RB
from/IN
56/CD
%/NN
in/IN
1982/CD
but/CC
still/RB
nearly/RB
one/CD
million/CD
people/NNS
./.
Donald/NNP
Underwood/NNP
,/,
head/NN
of/IN
retirement/NN
planning/NN
for/IN
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
,/,
says/VBZ
he/PRP
was/VBD
surprised/JJ
to/TO
discover/VB
that/DT
more/JJR
money/NN
flowed/VBD
into/IN
the/DT
firm/NN
's/POS
IRA/NN
accounts/NNS
in/IN
1988/CD
than/IN
in/IN
1987/CD
./.
A/DT
big/JJ
IRA/NN
fan/NN
,/,
Mr./NNP
Underwood/NNP
's/POS
license/NN
plate/NN
reads/VBZ
:/:
Merrill/NNP
Lynch/NNP
is/VBZ
convinced/VBN
the/DT
Republican/JJ
IRA/NN
plan/NN
would/MD
appeal/VB
to/TO
its/PRP$
customers/NNS
,/,
and/CC
it/PRP
is/VBZ
lobbying/VBG
strongly/RB
for/IN
it/PRP
./.
``/``
I/PRP
think/VBP
people/NNS
are/VBP
really/RB
concerned/JJ
about/IN
what/WP
the/DT
tax/NN
rate/NN
will/MD
be/VB
in/IN
the/DT
future/NN
,/,
''/''
Mr./NNP
Underwood/NNP
says/VBZ
./.
The/DT
higher/JJR
tax/NN
rates/NNS
go/VBP
in/IN
the/DT
future/NN
,/,
of/IN
course/NN
,/,
the/DT
more/RBR
valuable/JJ
the/DT
future/JJ
tax/NN
breaks/NNS
./.
The/DT
bigger/JJR
the/DT
incentive/NN
the/DT
government/NN
offers/VBZ
for/IN
savings/NNS
,/,
the/DT
more/JJR
tax/NN
revenues/NNS
a/DT
scheme/NN
would/MD
lose/VB
--/:
or/CC
so/RB
many/JJ
economists/NNS
reason/VBP
./.
But/CC
that/DT
's/VBZ
not/RB
how/WRB
Sen./NNP
Roth/NNP
and/CC
his/PRP$
allies/NNS
look/VBP
at/IN
it/PRP
./.
First/RB
,/,
they/PRP
would/MD
allow/VB
people/NNS
with/IN
old-fashioned/JJ
IRAs/NNS
to/TO
shift/VB
the/DT
money/NN
to/TO
the/DT
new/JJ
ones/NNS
as/RB
long/RB
as/IN
they/PRP
pay/VBP
tax/NN
--/:
at/IN
today/NN
's/POS
lower/JJR
tax/NN
rates/NNS
--/:
on/IN
the/DT
previously/RB
deducted/VBN
contributions/NNS
./.
That/DT
would/MD
raise/VB
$/$
11.5/CD
billion/CD
for/IN
the/DT
Treasury/NNP
over/IN
the/DT
next/JJ
five/CD
years/NNS
,/,
congressonal/JJ
tax/NN
experts/NNS
estimate/VBP
./.
But/CC
allowing/VBG
the/DT
interest/NN
buildup/NN
on/IN
those/DT
contributions/NNS
to/TO
escape/VB
taxation/NN
would/MD
cost/VB
the/DT
Treasury/NNP
far/RB
more/JJR
than/IN
that/DT
sum/NN
in/IN
the/DT
long/JJ
run/NN
,/,
the/DT
Congressional/NNP
Budget/NNP
Office/NNP
says/VBZ
./.
``/``
It/PRP
's/VBZ
a/DT
huge/JJ
giveaway/NN
,/,
''/''
Mr./NNP
Summers/NNP
protests/VBZ
./.
Second/RB
,/,
Sen./NNP
Roth/NNP
insists/VBZ
that/IN
the/DT
extra/JJ
savings/NNS
his/PRP$
plan/NN
would/MD
produce/VB
would/MD
spur/VB
so/RB
much/JJ
extra/JJ
economic/JJ
growth/NN
that/IN
the/DT
Treasury/NNP
would/MD
n't/RB
suffer/VB
./.
The/DT
claim/NN
is/VBZ
an/DT
echo/NN
of/IN
the/DT
supply-side/JJ
promise/NN
that/IN
the/DT
1981/CD
tax/NN
cuts/NNS
that/WDT
bear/VBP
Sen./NNP
Roth/NNP
's/POS
name/NN
would/MD
finance/VB
themselves/PRP
through/IN
added/JJ
growth/NN
or/CC
added/JJ
savings/NNS
./.
Telerate/NNP
Inc./NNP
,/,
which/WDT
has/VBZ
rejected/VBN
an/DT
$/$
18-a-share/JJ
tender/NN
offer/NN
by/IN
Dow/NNP
Jones/NNP
&/CC
Co./NNP
for/IN
the/DT
33/CD
%/NN
of/IN
Telerate/NNP
that/WDT
Dow/NNP
Jones/NNP
does/VBZ
n't/RB
already/RB
own/VB
,/,
said/VBD
the/DT
two/CD
companies/NNS
began/VBD
talks/NNS
yesterday/NN
to/TO
try/VB
to/TO
negotiate/VB
a/DT
friendly/JJ
transaction/NN
./.
However/RB
,/,
the/DT
talks/NNS
did/VBD
n't/RB
produce/VB
any/DT
changes/NNS
in/IN
the/DT
$/$
576/CD
million/CD
Dow/NNP
Jones/NNP
offer/NN
,/,
which/WDT
a/DT
committee/NN
of/IN
Telerate/NNP
's/POS
two/CD
independent/JJ
directors/NNS
has/VBZ
rejected/VBN
as/IN
inadequate/JJ
./.
Peter/NNP
Skinner/NNP
,/,
vice/NN
president/NN
and/CC
corporate/JJ
general/JJ
counsel/NN
for/IN
Dow/NNP
Jones/NNP
,/,
said/VBD
yesterday/NN
's/POS
talks/NNS
took/VBD
place/NN
both/CC
on/IN
the/DT
telephone/NN
and/CC
in/IN
person/NN
./.
``/``
We/PRP
discussed/VBD
the/DT
bid/NN
,/,
but/CC
Dow/NNP
Jones/NNP
and/CC
its/PRP$
board/NN
of/IN
directors/NNS
believe/VBP
the/DT
bid/NN
is/VBZ
full/JJ
and/CC
fair/JJ
,/,
''/''
Mr./NNP
Skinner/NNP
said/VBD
./.
He/PRP
said/VBD
no/DT
future/JJ
talks/NNS
are/VBP
currently/RB
scheduled/VBN
,/,
but/CC
added/VBD
that/IN
Dow/NNP
Jones/NNP
representatives/NNS
will/MD
meet/VB
again/RB
with/IN
Telerate/NNP
officials/NNS
if/IN
Telerate/NNP
seeks/VBZ
a/DT
meeting/NN
./.
Telerate/NN
disclosed/VBD
the/DT
opening/NN
of/IN
negotiations/NNS
in/IN
a/DT
filing/NN
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
,/,
which/WDT
said/VBD
that/IN
``/``
there/EX
can/MD
be/VB
no/DT
assurance/NN
that/IN
such/JJ
negotiations/NNS
will/MD
continue/VB
or/CC
will/MD
result/VB
in/IN
revised/JJ
terms/NNS
that/WDT
will/MD
be/VB
satisfactory/JJ
to/TO
the/DT
special/JJ
committee/NN
./.
''/''
The/DT
talks/NNS
followed/VBD
an/DT
effort/NN
by/IN
Telerate/NNP
to/TO
place/VB
a/DT
strongly/RB
worded/VBN
advertisement/NN
attacking/VBG
the/DT
Dow/NNP
Jones/NNP
offer/NN
in/IN
yesterday/NN
's/POS
editions/NNS
of/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
,/,
according/VBG
to/TO
two/CD
people/NNS
familiar/JJ
with/IN
Telerate/NNP
./.
After/IN
Telerate/NNP
submitted/VBD
its/PRP$
ad/NN
to/TO
the/DT
Journal/NNP
Wednesday/NNP
,/,
the/DT
people/NNS
said/VBD
,/,
a/DT
lawyer/NN
for/IN
Dow/NNP
Jones/NNP
telephoned/VBD
a/DT
Telerate/NNP
lawyer/NN
./.
Soon/RB
thereafter/RB
,/,
Warren/NNP
H./NNP
Phillips/NNP
,/,
chairman/NN
of/IN
Dow/NNP
Jones/NNP
,/,
telephoned/VBD
Neil/NNP
S./NNP
Hirsch/NNP
,/,
chairman/NN
of/IN
Telerate/NNP
./.
As/IN
a/DT
result/NN
of/IN
the/DT
conversations/NNS
,/,
the/DT
people/NNS
said/VBD
,/,
Telerate/NNP
decided/VBD
not/RB
to/TO
run/VB
the/DT
ad/NN
yesterday/NN
,/,
and/CC
Dow/NNP
Jones/NNP
agreed/VBD
to/TO
meet/VB
with/IN
Telerate/NNP
./.
Mr./NNP
Skinner/NNP
said/VBD
that/IN
Dow/NNP
Jones/NNP
executives/NNS
had/VBD
been/VBN
told/VBN
that/IN
the/DT
ad/NN
would/MD
be/VB
submitted/VBN
by/IN
Telerate/NNP
and/CC
were/VBD
advised/VBN
of/IN
its/PRP$
content/NN
./.
The/DT
Dow/NNP
Jones/NNP
executives/NNS
indicated/VBD
to/TO
Telerate/NNP
executives/NNS
that/IN
such/PDT
an/DT
ad/NN
would/MD
not/RB
be/VB
``/``
helpful/JJ
,/,
''/''
Mr./NNP
Skinner/NNP
said/VBD
,/,
and/CC
Telerate/NNP
decided/VBD
not/RB
to/TO
run/VB
the/DT
ad/NN
./.
A/DT
spokesman/NN
for/IN
Telerate/NNP
declined/VBD
to/TO
elaborate/VB
on/IN
Telerate/NNP
's/POS
filing/NN
with/IN
the/DT
SEC/NNP
./.
Telerate/NNP
stock/NN
rose/VBD
87.5/CD
cents/NNS
to/TO
close/VB
at/IN
$/$
20.50/CD
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
./.
Dow/NNP
Jones/NNP
fell/VBD
62.5/CD
cents/NNS
to/TO
close/VB
at/IN
$/$
36.625/CD
./.
Many/JJ
of/IN
Wall/NNP
Street/NNP
's/POS
takeover-stock/JJ
speculators/NNS
bought/VBD
relatively/RB
large/JJ
positions/NNS
in/IN
Telerate/NNP
stock/NN
after/IN
Dow/NNP
Jones/NNP
announced/VBD
its/PRP$
tender/NN
offer/NN
on/IN
Sept./NNP
21/CD
./.
The/DT
traders/NNS
are/VBP
betting/VBG
Dow/NNP
Jones/NNP
will/MD
increase/VB
its/PRP$
$/$
18-a-share/JJ
offer/NN
in/IN
order/NN
to/TO
acquire/VB
full/JJ
ownership/NN
of/IN
Telerate/NNP
,/,
an/DT
electronic/JJ
distributor/NN
of/IN
financial-market/NN
information/NN
./.
Several/JJ
takeover/NN
stock/NN
traders/NNS
said/VBD
yesterday/NN
they/PRP
expect/VBP
Dow/NNP
Jones/NNP
to/TO
offer/VB
at/IN
least/JJS
$/$
21/CD
./.
Some/DT
analysts/NNS
,/,
investment/NN
bankers/NNS
and/CC
institutional/JJ
investors/NNS
who/WP
have/VBP
studied/VBN
Telerate/NNP
have/VBP
said/VBD
they/PRP
believe/VBP
the/DT
company/NN
could/MD
fetch/VB
between/IN
$/$
25/CD
and/CC
$/$
30/CD
a/DT
share/NN
if/IN
it/PRP
were/VBD
put/VBD
up/RP
for/IN
auction/NN
./.
But/CC
the/DT
takeover/NN
stock/NN
traders/NNS
,/,
who/WP
declined/VBD
to/TO
be/VB
identified/VBN
,/,
said/VBD
they/PRP
believe/VBP
it/PRP
is/VBZ
unrealistic/JJ
to/TO
expect/VB
Dow/NNP
Jones/NNP
will/MD
pay/VB
that/RB
much/JJ
,/,
considering/VBG
it/PRP
already/RB
owns/VBZ
about/RB
67/CD
%/NN
of/IN
Telerate/NN
./.
Bruce/NNP
Thorp/NNP
,/,
an/DT
analyst/NN
at/IN
Philadelphia-based/JJ
Provident/NNP
National/NNP
Bank/NNP
,/,
said/VBD
Dow/NNP
Jones/NNP
's/POS
tender/NN
offer/NN
reflects/VBZ
a/DT
typical/JJ
premium/NN
for/IN
the/DT
purchase/NN
of/IN
a/DT
remaining/VBG
minority/NN
stake/NN
./.
He/PRP
thinks/VBZ
Dow/NNP
Jones/NNP
will/MD
end/VB
up/RP
paying/VBG
$/$
20/CD
or/CC
$/$
21/CD
a/DT
share/NN
for/IN
Telerate/NNP
./.
``/``
The/DT
offer/NN
will/MD
be/VB
sweetened/VBN
,/,
not/RB
because/IN
it/PRP
has/VBZ
to/TO
be/VB
,/,
but/CC
because/IN
it/PRP
will/MD
make/VB
for/IN
a/DT
smoother/JJ
transaction/NN
,/,
''/''
Mr./NNP
Thorp/NNP
said/VBD
./.
``/``
Dow/NNP
Jones/NNP
could/MD
bludgeon/VB
its/PRP$
way/NN
through/IN
the/DT
process/NN
and/CC
get/VB
it/PRP
for/IN
less/JJR
,/,
but/CC
they/PRP
wo/MD
n't/RB
do/VB
that/DT
./.
Dow/NNP
Jones/NNP
is/VBZ
not/RB
going/VBG
to/TO
squeeze/VB
as/RB
hard/RB
as/IN
it/PRP
could/MD
./.
''/''
Dow/NNP
Jones/NNP
declined/VBD
to/TO
comment/VB
on/IN
Mr./NNP
Thorp/NNP
's/POS
speculation/NN
./.
Telerate/NNP
's/POS
proposed/JJ
ad/NN
,/,
headlined/VBD
``/``
What/WP
Now/RB
,/,
Dow/NNP
Jones/NNP
?/.
''/''
was/VBD
in/IN
the/DT
form/NN
of/IN
a/DT
letter/NN
to/TO
Dow/NNP
Jones/NNP
directors/NNS
./.
``/``
How/WRB
can/MD
a/DT
company/NN
of/IN
Dow/NNP
Jones/NNP
's/POS
reputation/NN
persist/VB
in/IN
a/DT
coercive/JJ
attempt/NN
to/TO
squeeze/VB
out/RP
the/DT
minority/NN
shareholders/NNS
of/IN
Telerate/NNP
at/IN
a/DT
low-ball/JJ
price/NN
of/IN
$/$
18/CD
a/DT
share/NN
?/.
''/''
the/DT
ad/NN
asked/VBD
./.
A/DT
copy/NN
of/IN
the/DT
ad/NN
was/VBD
obtained/VBN
from/IN
a/DT
person/NN
familiar/JJ
with/IN
Telerate/NNP
./.
``/``
We/PRP
are/VBP
forced/VBN
to/TO
consider/VB
Dow/NNP
Jones/NNP
's/POS
actions/NNS
as/IN
hostile/JJ
--/:
to/TO
Telerate/NNP
's/POS
shareholders/NNS
,/,
management/NN
,/,
and/CC
employees/NNS
,/,
''/''
the/DT
ad/NN
said/VBD
./.
It/PRP
was/VBD
signed/VBN
by/IN
Mr./NNP
Hirsch/NNP
,/,
three/CD
other/JJ
Telerate/NNP
directors/NNS
who/WP
are/VBP
employees/NNS
of/IN
Telerate/NNP
,/,
and/CC
two/CD
outside/JJ
directors/NNS
./.
People/NNS
familiar/JJ
with/IN
Telerate/NNP
said/VBD
the/DT
ad/NN
was/VBD
intended/VBN
to/TO
encourage/VB
Dow/NNP
Jones/NNP
to/TO
begin/VB
negotiations/NNS
and/CC
was/VBD
submitted/VBN
to/TO
the/DT
Journal/NNP
for/IN
that/DT
reason/NN
./.
``/``
We/PRP
could/MD
have/VB
run/VBN
it/PRP
in/IN
the/DT
New/NNP
York/NNP
Times/NNP
,/,
''/''
one/CD
person/NN
familiar/JJ
with/IN
Telerate/NNP
said/VBD
./.
As/IN
evidence/NN
of/IN
their/PRP$
contention/NN
that/IN
the/DT
current/JJ
Dow/NNP
Jones/NNP
offer/NN
is/VBZ
too/RB
low/JJ
,/,
takeover-stock/JJ
speculators/NNS
pointed/VBD
to/TO
an/DT
SEC/NNP
filing/NN
by/IN
Dow/NNP
Jones/NNP
disclosing/VBG
that/IN
Dow/NNP
Jones/NNP
managers/NNS
had/VBD
proposed/VBN
offering/VBG
$/$
19/CD
a/DT
share/NN
for/IN
Telerate/NN
./.
However/RB
,/,
that/IN
proposal/NN
was/VBD
overruled/VBN
by/IN
Dow/NNP
Jones/NNP
's/POS
board/NN
,/,
which/WDT
decided/VBD
to/TO
offer/VB
$/$
18/CD
a/DT
share/NN
./.
After/IN
the/DT
Telerate/NNP
special/JJ
committee/NN
rejected/VBD
the/DT
Dow/NNP
Jones/NNP
offer/NN
as/RB
inadequate/JJ
,/,
Mr./NNP
Phillips/NNP
of/IN
Dow/NNP
Jones/NNP
said/VBD
,/,
``/``
We/PRP
are/VBP
proceeding/VBG
with/IN
our/PRP$
$/$
18-a-share/JJ
offer/NN
and/CC
continue/VBP
to/TO
believe/VB
that/IN
the/DT
offer/NN
is/VBZ
fair/JJ
to/TO
all/DT
Telerate/NNP
stockholders/NNS
./.
''/''
The/DT
offer/NN
is/VBZ
scheduled/VBN
to/TO
expire/VB
Nov./NNP
3/CD
./.
Separately/RB
,/,
a/DT
hearing/NN
is/VBZ
scheduled/VBN
for/IN
Monday/NNP
in/IN
Delaware/NNP
Chancery/NNP
Court/NNP
on/IN
a/DT
motion/NN
by/IN
certain/JJ
Telerate/NN
shareholders/NNS
seeking/VBG
a/DT
court/NN
order/NN
to/TO
block/VB
the/DT
Dow/NNP
Jones/NNP
tender/NN
offer/NN
./.
Dow/NNP
Jones/NNP
paid/VBD
between/IN
$/$
10/CD
and/CC
$/$
15/CD
a/DT
share/NN
for/IN
most/JJ
of/IN
the/DT
63.6/CD
million/CD
Telerate/NNP
shares/NNS
it/PRP
owns/VBZ
./.
The/DT
shares/NNS
were/VBD
purchased/VBN
in/IN
various/JJ
transactions/NNS
,/,
starting/VBG
in/IN
August/NNP
1985/CD
./.
However/RB
,/,
Dow/NNP
Jones/NNP
paid/VBD
$/$
28.75/CD
a/DT
share/NN
for/IN
one/CD
block/NN
of/IN
about/RB
10.5/CD
million/CD
Telerate/NNP
shares/NNS
in/IN
September/NNP
1987/CD
./.
That/DT
price/NN
represented/VBD
a/DT
premium/NN
of/IN
16.8/CD
%/NN
above/IN
the/DT
then-market/JJ
price/NN
of/IN
Telerate/NNP
shares/NNS
./.
In/IN
addition/NN
to/TO
The/DT
Wall/NNP
Street/NNP
Journal/NNP
,/,
Dow/NNP
Jones/NNP
publishes/VBZ
Barron/NNP
's/POS
,/,
various/JJ
community/NN
newspapers/NNS
,/,
and/CC
operates/VBZ
financial/JJ
news/NN
services/NNS
and/CC
computer/NN
databases/NNS
./.
In/IN
a/DT
highly/RB
unusual/JJ
move/NN
that/WDT
buys/VBZ
time/NN
for/IN
Congress/NNP
to/TO
debate/VB
a/DT
debt-limit/NN
increase/NN
,/,
the/DT
Treasury/NNP
Department/NNP
announced/VBD
it/PRP
will/MD
hold/VB
an/DT
unscheduled/JJ
auction/NN
of/IN
securities/NNS
next/IN
week/NN
to/TO
raise/VB
$/$
17/CD
billion/CD
./.
The/DT
auction/NN
is/VBZ
expected/VBN
to/TO
be/VB
held/VBN
on/IN
Monday/NNP
and/CC
will/MD
settle/VB
on/IN
Tuesday/NNP
,/,
just/RB
hours/NNS
before/IN
the/DT
current/JJ
debt-limit/NN
legislation/NN
expires/VBZ
./.
If/IN
Congress/NNP
has/VBZ
n't/RB
enacted/VBN
a/DT
new/JJ
debt/NN
limit/NN
by/IN
midnight/NN
Tuesday/NNP
,/,
the/DT
Treasury/NNP
will/MD
have/VB
to/TO
suspend/VB
all/DT
sales/NNS
of/IN
securities/NNS
,/,
including/VBG
savings/NNS
bonds/NNS
./.
The/DT
extraordinary/JJ
auction/NN
,/,
however/RB
,/,
should/MD
give/VB
the/DT
Treasury/NNP
enough/JJ
cash/NN
to/TO
cover/VB
Social/NNP
Security/NNP
checks/NNS
due/JJ
out/RB
Nov./NNP
3/CD
./.
In/IN
a/DT
letter/NN
to/TO
congressional/JJ
leaders/NNS
,/,
Treasury/NNP
Secretary/NNP
Nicholas/NNP
Brady/NNP
said/VBD
the/DT
government/NN
will/MD
now/RB
be/VB
able/JJ
to/TO
operate/VB
through/IN
Nov./NNP
8/CD
without/IN
a/DT
debt-limit/NN
increase/NN
./.
The/DT
Treasury/NNP
's/POS
action/NN
comes/VBZ
in/IN
response/NN
to/TO
a/DT
continuing/JJ
stalemate/NN
on/IN
Capitol/NNP
Hill/NNP
over/IN
the/DT
debt-limit/NN
legislation/NN
./.
Democrats/NNPS
want/VBP
to/TO
use/VB
the/DT
debt-limit/NN
bill/NN
as/IN
a/DT
vehicle/NN
for/IN
enacting/VBG
unrelated/JJ
legislation/NN
that/IN
the/DT
administration/NN
opposes/VBZ
,/,
and/CC
the/DT
administration/NN
is/VBZ
considering/VBG
using/VBG
the/DT
bill/NN
as/IN
a/DT
vehicle/NN
for/IN
a/DT
cut/NN
in/IN
the/DT
capital-gains/NNS
tax/NN
./.
In/IN
recent/JJ
days/NNS
,/,
the/DT
battle/NN
has/VBZ
become/VBN
a/DT
game/NN
of/IN
chicken/NN
,/,
and/CC
it/PRP
had/VBD
raised/VBN
the/DT
prospect/NN
that/IN
the/DT
government/NN
might/MD
run/VB
out/RP
of/IN
cash/NN
next/IN
Friday/NNP
and/CC
be/VB
unable/JJ
to/TO
mail/VB
Social/NNP
Security/NNP
checks/NNS
./.
Treasury/NNP
officials/NNS
said/VBD
they/PRP
decided/VBD
to/TO
take/VB
their/PRP$
extraordinary/JJ
action/NN
to/TO
make/VB
certain/JJ
that/IN
Social/NNP
Security/NNP
recipients/NNS
get/VB
their/PRP$
checks/NNS
./.
They/PRP
also/RB
said/VBD
the/DT
administration/NN
may/MD
still/RB
seek/VB
to/TO
attach/VB
a/DT
capital-gains/NNS
tax/NN
cut/VBN
to/TO
the/DT
debt/NN
legislation/NN
despite/IN
the/DT
intensifying/JJ
controversy/NN
./.
``/``
The/DT
secretary/NN
believes/VBZ
capital/NN
gains/NNS
is/VBZ
a/DT
top/JJ
priority/NN
and/CC
that/IN
any/DT
available/JJ
vehicle/NN
ought/MD
to/TO
be/VB
used/VBN
,/,
''/''
said/VBD
Assistant/NNP
Treasury/NNP
Secretary/NNP
Roger/NNP
Bolton/NNP
./.
Existing/JJ
debt-limit/NN
legislation/NN
allows/VBZ
the/DT
Treasury/NNP
to/TO
borrow/VB
as/RB
much/JJ
as/IN
$/$
2.87/CD
trillion/CD
./.
But/CC
so/RB
far/RB
,/,
the/DT
government/NN
's/POS
debt/NN
totals/VBZ
only/RB
$/$
2.853/CD
trillion/CD
./.
That/DT
means/VBZ
the/DT
government/NN
can/MD
legally/RB
sell/VB
another/DT
$/$
17/CD
billion/CD
in/IN
debt/NN
,/,
provided/VBN
it/PRP
acts/NNS
by/IN
Tuesday/NNP
./.
On/IN
Tuesday/NNP
,/,
the/DT
debt/NN
limit/NN
expires/VBZ
,/,
and/CC
the/DT
limit/NN
drops/VBZ
back/RB
to/TO
$/$
2.8/CD
trillion/CD
./.
If/IN
that/DT
occurs/VBZ
,/,
no/DT
new/JJ
securities/NNS
can/MD
be/VB
issued/VBN
without/IN
violating/VBG
the/DT
debt-limit/NN
law/NN
./.
The/DT
Treasury/NNP
's/POS
regular/JJ
auction/NN
of/IN
Treasury/NNP
bills/NNS
,/,
scheduled/VBN
to/TO
settle/VB
on/IN
Thursday/NNP
,/,
is/VBZ
expected/VBN
to/TO
be/VB
canceled/VBN
./.
In/IN
addition/NN
,/,
all/DT
sales/NNS
of/IN
savings/NNS
bonds/NNS
and/CC
special/JJ
securities/NNS
issued/VBN
to/TO
state/NN
and/CC
local/JJ
governments/NNS
will/MD
cease/VB
./.
The/DT
details/NNS
of/IN
next/JJ
week/NN
's/POS
unusual/JJ
auction/NN
will/MD
be/VB
announced/VBN
today/NN
./.
In/IN
his/PRP$
letter/NN
to/TO
congressional/JJ
leaders/NNS
,/,
Treasury/NNP
Secretary/NNP
Brady/NNP
called/VBD
the/DT
move/NN
an/DT
``/``
extraordinary/JJ
administrative/JJ
action/NN
./.
''/''
He/PRP
said/VBD
that/IN
it/PRP
``/``
is/VBZ
important/JJ
Congress/NNP
act/NN
on/IN
debt-limit/NN
legislation/NN
no/RB
later/RBR
than/IN
Nov./NNP
7/CD
,/,
in/IN
order/NN
to/TO
ensure/VB
adequate/JJ
time/NN
to/TO
arrange/VB
market/NN
borrowings/NNS
to/TO
avoid/VB
default/NN
./.
''/''
Mr./NNP
Brady/NNP
also/RB
said/VBD
that/IN
he/PRP
is/VBZ
``/``
aware/JJ
of/IN
no/DT
other/JJ
realistic/JJ
measures/NNS
,/,
other/JJ
than/IN
debt-limit/NN
legislation/NN
,/,
that/WDT
could/MD
further/RB
extend/VB
the/DT
anticipated/JJ
date/NN
of/IN
default/NN
./.
''/''
The/DT
debt-limit/NN
debate/NN
has/VBZ
become/VBN
an/DT
annual/JJ
ritual/NN
between/IN
the/DT
administration/NN
and/CC
Congress/NNP
./.
Increasing/VBG
the/DT
limit/NN
is/VBZ
necessary/JJ
to/TO
keep/VB
the/DT
U.S./NNP
from/IN
defaulting/VBG
on/IN
its/PRP$
obligations/NNS
,/,
but/CC
the/DT
increase/NN
always/RB
creates/VBZ
intense/JJ
controversy/NN
in/IN
Congress/NNP
./.
Legislators/NNS
like/VBP
to/TO
amend/VB
the/DT
debt-limit/NN
bill/NN
with/IN
extraneous/JJ
legislation/NN
because/IN
they/PRP
believe/VBP
it/PRP
's/VBZ
a/DT
difficult/JJ
bill/NN
for/IN
the/DT
president/NN
to/TO
veto/NN
./.
This/DT
year/NN
,/,
the/DT
debt-limit/NN
debate/NN
promises/VBZ
to/TO
be/VB
particularly/RB
intense/JJ
because/RB
of/IN
the/DT
battle/NN
over/IN
capital/NN
gains/NNS
./.
The/DT
administration/NN
and/CC
its/PRP$
Republican/JJ
allies/NNS
see/VBP
the/DT
measure/NN
as/IN
a/DT
possible/JJ
opportunity/NN
to/TO
pass/VB
a/DT
capital-gains/NNS
tax/NN
cut/NN
./.
Their/PRP$
hope/NN
is/VBZ
that/IN
Democratic/JJ
leaders/NNS
in/IN
the/DT
Senate/NNP
would/MD
n't/RB
block/VB
it/PRP
for/IN
fear/NN
of/IN
being/VBG
blamed/VBN
for/IN
the/DT
government/NN
's/POS
default/NN
./.
The/DT
California/NNP
Department/NNP
of/IN
Insurance/NNP
charged/VBD
Farmers/NNP
Insurance/NNP
Exchange/NNP
and/CC
Mid-Century/NNP
Insurance/NNP
Co./NNP
with/IN
discriminating/VBG
against/IN
three/CD
groups/NNS
of/IN
automobile/NN
insurance/NN
customers/NNS
./.
The/DT
department/NN
did/VBD
n't/RB
specify/VB
how/WRB
many/JJ
consumers/NNS
have/VBP
been/VBN
hurt/VBN
by/IN
the/DT
alleged/JJ
discriminatory/JJ
practices/NNS
,/,
saying/VBG
only/RB
that/IN
they/PRP
``/``
affect/VBP
a/DT
substantial/JJ
number/NN
of/IN
people/NNS
./.
''/''
The/DT
department/NN
claims/NNS
,/,
however/RB
,/,
that/IN
Farmers/NNP
and/CC
Mid-Century/NNP
,/,
both/DT
members/NNS
of/IN
the/DT
Farmers/NNP
Group/NNP
of/IN
Insurance/NNP
Cos./NNP
,/,
are/VBP
steering/VBG
customers/NNS
who/WP
might/MD
qualify/VB
for/IN
Farmers/NNP
policies/NNS
toward/IN
higher-priced/JJ
Mid-Century/NNP
policies/NNS
./.
The/DT
customers/NNS
affected/VBN
are/VBP
under/IN
the/DT
age/NN
of/IN
25/CD
,/,
youths/NNS
living/VBG
in/IN
households/NNS
of/IN
preferred/JJ
policyholders/NNS
and/CC
drivers/NNS
under/IN
the/DT
age/NN
of/IN
50/CD
who/WP
seek/VBP
minimal/JJ
coverage/NN
,/,
the/DT
department/NN
said/VBD
./.
``/``
As/IN
Mid-Century/NNP
's/POS
rates/NNS
are/VBP
up/IN
to/TO
40/CD
percent/NN
higher/JJR
than/IN
Farmers/NNP
for/IN
the/DT
same/JJ
coverage/NN
,/,
we/PRP
have/VBP
a/DT
situation/NN
in/IN
which/WDT
the/DT
companies/NNS
effectively/RB
raise/VBP
rates/NNS
for/IN
the/DT
new/JJ
business/NN
by/IN
denying/VBG
coverage/NN
in/IN
Farmers/NNP
,/,
''/''
Roxani/NNP
Gillespie/NNP
,/,
the/DT
state/NN
's/POS
insurance/NN
commissioner/NN
,/,
said/VBD
in/IN
a/DT
prepared/JJ
statement/NN
./.
``/``
And/CC
that/DT
's/VBZ
discrimination/NN
in/IN
our/PRP$
book/NN
./.
''/''
A/DT
spokesman/NN
for/IN
Ms./NNP
Gillespie/NNP
said/VBD
the/DT
department/NN
expected/VBD
to/TO
hold/VB
a/DT
hearing/NN
on/IN
the/DT
matter/NN
within/IN
30/CD
days/NNS
./.
Farmers/NNP
Group/NNP
of/IN
Insurance/NNP
is/VBZ
a/DT
unit/NN
of/IN
B.A.T/NNP
Industries/NNP
PLC/NNP
./.
In/IN
Los/NNP
Angeles/NNP
,/,
Farmers/NNP
strongly/RB
defended/VBD
its/PRP$
practices/NNS
,/,
saying/VBG
its/PRP$
rating/NN
guidelines/NNS
are/VBP
``/``
fair/JJ
and/CC
reasonable/JJ
and/CC
in/IN
line/NN
with/IN
common/JJ
industry/NN
practices/NNS
./.
We/PRP
have/VBP
carefully/RB
considered/VBN
our/PRP$
underwriting/NN
practices/NNS
and/CC
we/PRP
believe/VBP
they/PRP
are/VBP
in/IN
compliance/NN
with/IN
the/DT
law/NN
and/CC
its/PRP$
intent/NN
,/,
''/''
said/VBD
John/NNP
Millen/NNP
,/,
a/DT
spokesman/NN
for/IN
the/DT
company/NN
./.
Mr./NNP
Millen/NNP
said/VBD
Farmers/NNP
would/MD
review/VB
the/DT
insurance/NN
department/NN
's/POS
charges/NNS
and/CC
respond/VB
within/IN
the/DT
ten/CD
days/NNS
allowed/VBN
./.
Credit/NNP
Lyonnais/NNP
S.A./NNP
said/VBD
it/PRP
agreed/VBD
to/TO
acquire/VB
slightly/RB
more/JJR
than/IN
50/CD
%/NN
of/IN
Thomson-CSF/NNP
Finance/NNP
S.A./NNP
in/IN
an/DT
asset/NN
swap/NN
between/IN
the/DT
two/CD
French/JJ
state-controlled/JJ
groups/NNS
./.
The/DT
bank/NN
said/VBD
it/PRP
will/MD
acquire/VB
the/DT
stake/NN
in/IN
the/DT
finance/NN
unit/NN
of/IN
defense/NN
and/CC
electronics/NN
group/NN
Thomson-CSF/NNP
S.A./NNP
in/IN
exchange/NN
for/IN
almost/RB
14/CD
%/NN
of/IN
its/PRP$
own/JJ
capital/NN
./.
No/DT
value/NN
was/VBD
given/VBN
for/IN
the/DT
transaction/NN
,/,
which/WDT
will/MD
create/VB
the/DT
sort/NN
of/IN
financial-industrial/JJ
tandem/JJ
common/NN
in/IN
West/NNP
Germany/NNP
and/CC
Japan/NNP
./.
Although/IN
Thomson/NNP
's/POS
banking/NN
activities/NNS
will/MD
become/VB
a/DT
Credit/NNP
Lyonnais/NNP
subsidiary/NN
,/,
they/PRP
are/VBP
to/TO
remain/VB
a/DT
separate/JJ
entity/NN
and/CC
,/,
according/VBG
to/TO
sources/NNS
,/,
will/MD
continue/VB
to/TO
handle/VB
Thomson/NNP
's/POS
own/JJ
international/JJ
financing/NN
needs/NNS
./.
Thomson-CSF/NNP
Finance/NNP
,/,
the/DT
largest/JJS
finance/NN
unit/NN
of/IN
any/DT
French/JJ
industrial/JJ
company/NN
,/,
also/RB
will/MD
gain/VB
access/NN
to/TO
products/NNS
offered/VBN
by/IN
Credit/NNP
Lyonnais/NNP
,/,
France/NNP
's/POS
secondbiggest/JJS
commercial/JJ
bank/NN
in/IN
terms/NNS
of/IN
assets/NNS
,/,
behind/IN
Banque/NNP
Nationale/NNP
de/FW
Paris/NNP
./.
The/DT
accord/NN
will/MD
strengthen/VB
Credit/NNP
Lyonnais/NNP
's/POS
corporate/JJ
financial/JJ
affairs/NNS
because/IN
of/IN
Thomson-CSF/NNP
Finance/NNP
's/POS
expertise/NN
in/IN
using/VBG
hedging/NN
and/CC
treasury-management/NN
products/NNS
./.
Thomson-CSF/NNP
Finance/NNP
posted/VBD
profit/NN
of/IN
1.8/CD
billion/CD
francs/NNS
$/$
288.9/CD
million/CD
1988/CD
,/,
an/DT
official/NN
said/VBD
./.
He/PRP
added/VBD
that/IN
Thomson/NN
consolidated/JJ
earnings/NNS
wo/MD
n't/RB
be/VB
affected/VBN
by/IN
the/DT
accord/NN
./.
Credit/NNP
Lyonnais/NNP
reported/VBD
1988/CD
consolidated/JJ
profit/NN
of/IN
2.06/CD
billion/CD
francs/NNS
after/IN
payments/NNS
to/TO
minority/NN
interests/NNS
./.
Thomson/NN
common/JJ
shares/NNS
and/CC
Credit/NNP
Lyonnais/NNP
non-voting/JJ
stock/NN
were/VBD
suspended/VBN
yesterday/NN
before/IN
the/DT
announcement/NN
at/IN
their/PRP$
respective/JJ
Wednesday/NNP
closing/NN
prices/NNS
of/IN
194.50/CD
francs/NNS
$/$
31.22/CD
642/CD
francs/NNS
$/$
103.05/CD
each/DT
./.
They/PRP
were/VBD
expected/VBN
to/TO
resume/VB
trading/VBG
today/NN
./.
Companies/NNS
listed/VBN
below/RB
reported/VBD
quarterly/JJ
profit/NN
substantially/RB
different/JJ
from/IN
the/DT
average/NN
of/IN
analysts/NNS
'/POS
estimates/NNS
./.
The/DT
companies/NNS
are/VBP
followed/VBN
by/IN
at/IN
least/JJS
three/CD
analysts/NNS
,/,
and/CC
had/VBD
a/DT
minimum/JJ
five-cent/JJ
change/NN
in/IN
actual/JJ
earnings/NNS
per/IN
share/NN
./.
Estimated/JJ
and/CC
actual/JJ
results/NNS
involving/VBG
losses/NNS
are/VBP
omitted/VBN
./.
The/DT
percent/NN
difference/NN
compares/VBZ
actual/JJ
profit/NN
with/IN
the/DT
30-day/JJ
estimate/NN
where/WRB
at/IN
least/JJS
three/CD
analysts/NNS
have/VBP
issues/NNS
forecasts/NNS
in/IN
the/DT
past/JJ
30/CD
days/NNS
./.
Otherwise/RB
,/,
actual/JJ
profit/NN
is/VBZ
compared/VBN
with/IN
the/DT
300-day/JJ
estimate/NN
./.
Source/NN
:/:
Zacks/NNP
Investment/NNP
Research/NNP
@/SYM
Money/NN
Market/NN
Deposits/NNS
-/:
a/SYM
6.22/CD
%/NN
a/SYM
-/:
Average/JJ
rate/NN
paid/VBN
yesterday/NN
by/IN
100/CD
large/JJ
banks/NNS
and/CC
thrifts/NNS
in/IN
the/DT
10/CD
largest/JJS
metropolitan/JJ
areas/NNS
as/IN
compiled/VBN
by/IN
Bank/NNP
Rate/NNP
Monitor/NNP
./.
b/SYM
-/:
Current/JJ
annual/JJ
yield/NN
./.
Guaranteed/VBN
minimum/JJ
6/CD
%/NN
./.
Swedish/JJ
real/JJ
estate/NN
and/CC
building/NN
concern/NN
Skanska/NNP
AB/NNP
said/VBD
its/PRP$
group/NN
pretax/JJ
profit/NN
for/IN
the/DT
first/JJ
eight/CD
months/NNS
rose/VBD
58/CD
%/NN
to/TO
1.49/CD
billion/CD
kronor/NN
$/$
233/CD
million/CD
946/CD
million/CD
kronor/NN
$/$
148/CD
million/CD
the/DT
corresponding/JJ
period/NN
last/JJ
year/NN
./.
Skanska/NNP
said/VBD
group/NN
sales/NNS
in/IN
the/DT
first/JJ
eight/CD
months/NNS
increased/VBD
29/CD
%/NN
to/TO
17.64/CD
billion/CD
kronor/NN
from/IN
13.67/CD
billion/CD
a/DT
year/NN
ago/RB
./.
PPG/NNP
Industries/NNP
Inc./NNP
said/VBD
it/PRP
will/MD
expand/VB
production/NN
at/IN
its/PRP$
Barberton/NNP
,/,
Ohio/NNP
,/,
chemical/NN
plant/NN
to/TO
increase/VB
total/JJ
capacity/NN
by/IN
50/CD
%/NN
./.
PPG/NNP
termed/VBD
the/DT
expansion/NN
a/DT
``/``
multimillion-dollar/JJ
project/NN
,/,
''/''
but/CC
did/VBD
n't/RB
give/VB
details/NNS
./.
The/DT
plant/NN
makes/VBZ
plastics/NNS
used/VBN
for/IN
lenses/NNS
in/IN
sunglasses/NN
and/CC
safety/NN
glasses/NNS
./.
The/DT
University/NNP
of/IN
Toronto/NNP
said/VBD
it/PRP
will/MD
drop/VB
its/PRP$
objections/NNS
to/TO
the/DT
offer/NN
by/IN
Institut/NNP
Merieux/NNP
S.A./NNP
to/TO
acquire/VB
Connaught/NNP
BioSciences/NNP
Inc./NNP
for/IN
942/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
803.7/CD
million/CD
a/DT
research/NN
agreement/NN
with/IN
the/DT
French/JJ
vaccine/NN
manufacturer/NN
./.
Under/IN
the/DT
terms/NNS
of/IN
the/DT
accord/NN
,/,
similar/JJ
to/TO
an/DT
agreement/NN
reached/VBN
last/JJ
week/NN
between/IN
the/DT
university/NN
and/CC
Merieux/NNP
's/POS
rival/JJ
bidders/NNS
for/IN
Connaught/NNP
,/,
Ciba-Geigy/NNP
Ltd./NNP
and/CC
Chiron/NNP
Corp./NNP
,/,
Merieux/NNP
agreed/VBD
to/TO
spend/VB
15/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
12.8/CD
million/CD
vaccine-related/JJ
research/NN
in/IN
Canada/NNP
,/,
C$/$
9/CD
million/CD
of/IN
which/WDT
would/MD
go/VB
to/TO
the/DT
university/NN
's/POS
research/NN
programs/NNS
./.
The/DT
university/NN
had/VBD
sued/VBN
Connaught/NNP
,/,
arguing/VBG
its/PRP$
directors/NNS
had/VBD
broken/VBN
a/DT
1972/CD
agreement/NN
not/RB
to/TO
sell/VB
the/DT
company/NN
to/TO
a/DT
foreign/JJ
concern/NN
by/IN
recommending/VBG
Merieux/NNP
's/POS
offer/NN
to/TO
shareholders/NNS
./.
A/DT
decision/NN
in/IN
the/DT
case/NN
,/,
heard/VBN
last/JJ
week/NN
by/IN
the/DT
Ontario/NNP
Supreme/NNP
Court/NNP
,/,
is/VBZ
expected/VBN
this/DT
week/NN
./.
A/DT
decision/NN
in/IN
the/DT
university/NN
's/POS
favor/NN
could/MD
block/VB
Connaught/NNP
's/POS
directors/NNS
from/IN
recommending/VBG
Merieux/NNP
's/POS
offer/NN
to/TO
shareholders/NNS
,/,
but/CC
could/MD
n't/RB
block/VB
the/DT
company/NN
's/POS
sale/NN
./.
James/NNP
Keffer/NNP
,/,
vice/NN
president/NN
,/,
research/NN
,/,
at/IN
the/DT
university/NN
,/,
said/VBD
the/DT
university/NN
is/VBZ
n't/RB
favoring/VBG
one/CD
bid/NN
over/IN
another/DT
./.
``/``
Both/DT
of/IN
these/DT
agreements/NNS
are/VBP
good/JJ
,/,
both/DT
add/VBP
substantial/JJ
benefits/NNS
to/TO
Canada/NNP
,/,
''/''
he/PRP
said/VBD
./.
``/``
Ciba-Geigy/NNP
Chiron/NNP
more/JJR
investment/NN
dollars/NNS
to/TO
Canadian/JJ
universities/NNS
and/CC
some/DT
new/JJ
products/NNS
,/,
but/CC
Merieux/NNP
is/VBZ
proposing/VBG
to/TO
build/VB
a/DT
new/JJ
biotechnology/NN
center/NN
./.
''/''
Ciba-Geigy/NNP
,/,
a/DT
Swiss/JJ
pharmaceutical/JJ
company/NN
,/,
and/CC
California-based/JJ
Chiron/NNP
,/,
a/DT
pharmaceutical/JJ
research/NN
concern/NN
,/,
are/VBP
offering/VBG
C$/$
866/CD
million/CD
,/,
or/CC
C$/$
30/CD
a/DT
share/NN
,/,
for/IN
Connaught/NN
./.
The/DT
Canadian/JJ
government/NN
said/VBD
earlier/RBR
this/DT
month/NN
that/IN
the/DT
proposed/JJ
Merieux/NN
acquisition/NN
did/VBD
n't/RB
appear/VB
to/TO
offer/VB
enough/RB
``/``
net/JJ
benefit/NN
''/''
to/TO
Canada/NNP
to/TO
approve/VB
./.
``/``
Reaching/VBG
an/DT
agreement/NN
is/VBZ
an/DT
advantage/NN
to/TO
both/CC
the/DT
university/NN
and/CC
Merieux/NNP
,/,
both/DT
in/IN
terms/NNS
of/IN
business/NN
and/CC
politically/RB
,/,
since/IN
the/DT
university/NN
has/VBZ
been/VBN
quite/RB
vocal/JJ
about/IN
the/DT
issue/NN
of/IN
foreign/JJ
ownership/NN
,/,
''/''
said/VBD
Philippe/NNP
Stoeckel/NNP
,/,
president/NN
of/IN
Merieux/NNP
Institute/NNP
Inc./NNP
,/,
Merieux/NNP
's/POS
U.S./NNP
subsidiary/NN
./.
THE/DT
HIGH-SCHOOL/NN
dropout/NN
rate/NN
in/IN
Pope/NNP
County/NNP
,/,
Ill./NNP
,/,
is/VBZ
markedly/RB
lower/JJR
than/IN
one/CD
stated/VBN
in/IN
a/DT
page-one/JJ
article/NN
Oct./NNP
13/CD
,/,
according/VBG
to/TO
the/DT
area/NN
's/POS
high-school/NN
principal/NN
./.
The/DT
figure/NN
in/IN
the/DT
article/NN
was/VBD
based/VBN
on/IN
federal/JJ
data/NNS
provided/VBN
by/IN
the/DT
Lower/NNP
Mississippi/NNP
Delta/NNP
Development/NNP
Commission/NNP
./.
River/NN
of/IN
Despair/NN
:/:
Along/IN
the/DT
Rich/JJ
Banks/NNS
of/IN
the/DT
Mississippi/NNP
Live/VBP
Poorest/JJS
of/IN
U.S./NNP
Poor/JJ
--/:
They/PRP
Endure/VBP
a/DT
Lack/NN
of/IN
Jobs/NNS
and/CC
Plantation/NN
Mentality/NN
,/,
While/IN
Landowners/NNS
Thrive/VBP
--/:
Where/WRB
Dreams/NNS
of/IN
Blacks/NNPS
Die/VBP
''/''
--/:
WSJ/NNP
Oct./NNP
23/CD
,/,
1989/CD
)/)
TRW/NNP
Inc./NNP
said/VBD
it/PRP
increased/VBD
its/PRP$
stock/NN
buy-back/JJ
program/NN
to/TO
four/CD
million/CD
common/JJ
shares/NNS
./.
The/DT
company/NN
's/POS
buy-back/NN
was/VBD
previously/RB
set/VBN
in/IN
1987/CD
at/IN
two/CD
million/CD
shares/NNS
and/CC
TRW/NNP
has/VBZ
already/RB
purchased/VBN
1.5/CD
million/CD
shares/NNS
./.
The/DT
automotive/JJ
,/,
aerospace/JJ
,/,
industrial/JJ
and/CC
electronic/JJ
products/NNS
concern/NN
has/VBZ
about/RB
60/CD
million/CD
shares/NNS
outstanding/JJ
./.
Investors/NNS
gave/VBD
an/DT
unexpectedly/RB
warm/JJ
welcome/NN
to/TO
Resolution/NNP
Funding/NNP
Corp./NNP
's/POS
first/JJ
auction/NN
of/IN
30-year/JJ
bonds/NNS
,/,
which/WDT
helped/VBD
lift/VB
the/DT
spirits/NNS
of/IN
the/DT
entire/JJ
bond/NN
market/NN
./.
Resolution/NNP
Funding/NNP
,/,
the/DT
government/NN
agency/NN
created/VBN
to/TO
raise/VB
cash/NN
to/TO
bail/VB
out/RP
the/DT
troubled/JJ
thrift/NN
industry/NN
,/,
received/VBD
bids/NNS
totaling/VBG
$/$
13/CD
billion/CD
for/IN
the/DT
so-called/JJ
bailout/NN
bonds/NNS
./.
It/PRP
accepted/VBD
$/$
4.52/CD
billion/CD
of/IN
the/DT
tenders/NNS
at/IN
an/DT
average/JJ
yield/NN
of/IN
8.15/CD
%/NN
,/,
slightly/RB
lower/JJR
than/IN
analysts/NNS
had/VBD
expected/VBN
./.
The/DT
bid-to-cover/JJ
ratio/NN
on/IN
the/DT
bonds/NNS
was/VBD
2.87/CD
to/TO
1/CD
,/,
better/JJR
than/IN
on/IN
the/DT
Treasury/NNP
's/POS
own/JJ
30-year/JJ
bonds/NNS
in/IN
recent/JJ
auctions/NNS
./.
The/DT
ratio/NN
,/,
which/WDT
reflects/VBZ
the/DT
number/NN
of/IN
bids/NNS
received/VBN
for/IN
each/DT
bid/NN
accepted/VBN
,/,
is/VBZ
used/VBN
to/TO
gauge/VB
investor/NN
demand/NN
./.
``/``
This/DT
was/VBD
an/DT
excellent/JJ
response/NN
to/TO
a/DT
new/JJ
security/NN
,/,
''/''
said/VBD
Michael/NNP
E./NNP
Basham/NNP
,/,
deputy/JJ
assistant/JJ
secretary/NN
of/IN
the/DT
Treasury/NNP
./.
``/``
We/PRP
were/VBD
very/RB
pleased/JJ
./.
''/''
Treasury/NNP
officials/NNS
were/VBD
also/RB
surprised/JJ
./.
Until/IN
yesterday/NN
,/,
institutional/JJ
investors/NNS
had/VBD
showed/VBN
little/JJ
interest/NN
in/IN
buying/VBG
the/DT
securities/NNS
./.
After/IN
dealers/NNS
complained/VBD
that/IN
potential/JJ
buyers/NNS
were/VBD
concerned/JJ
about/JJ
debt/NN
repayment/NN
,/,
the/DT
Treasury/NNP
released/VBD
a/DT
statement/NN
yesterday/NN
reiterating/VBG
that/IN
timely/JJ
payments/NNS
were/VBD
guaranteed/VBN
by/IN
the/DT
government/NN
./.
Traders/NNS
said/VBD
the/DT
auction/NN
was/VBD
saved/VBN
by/IN
a/DT
small/JJ
number/NN
of/IN
dealers/NNS
who/WP
bought/VBD
huge/JJ
amounts/NNS
of/IN
the/DT
bonds/NNS
./.
``/``
There/EX
's/VBZ
no/DT
doubt/NN
that/IN
the/DT
auction/NN
went/VBD
better/RBR
than/IN
expected/VBN
,/,
''/''
said/VBD
William/NNP
Sullivan/NNP
Jr./NNP
,/,
a/DT
senior/JJ
vice/NN
president/NN
at/IN
Dean/NNP
Witter/NNP
Reynolds/NNP
Inc/NNP
./.
The/DT
fact/NN
that/IN
bond/NN
prices/NNS
were/VBD
firm/JJ
prior/RB
to/TO
and/CC
after/IN
the/DT
auction/NN
was/VBD
a/DT
sign/NN
that/IN
``/``
the/DT
market/NN
is/VBZ
in/IN
very/RB
good/JJ
shape/NN
./.
''/''
Bond/NN
prices/NNS
often/RB
fall/VBP
right/RB
before/IN
new/JJ
supply/NN
is/VBZ
released/VBN
./.
Traders/NNS
said/VBD
a/DT
strong/JJ
market/NN
tone/NN
was/VBD
set/VBN
early/RB
in/IN
the/DT
day/NN
when/WRB
a/DT
bid/NN
to/TO
buy/VB
$/$
1/CD
billion/CD
of/IN
long-term/JJ
bonds/NNS
hit/VBD
the/DT
market/NN
./.
Bond/NN
dealers/NNS
identified/VBD
the/DT
buyer/NN
as/IN
Nippon/NNP
Kangyo/NNP
Kakumaru/NNP
International/NNP
Inc./NNP
,/,
a/DT
Japanese/JJ
brokerage/NN
firm/NN
that/WDT
purchased/VBD
the/DT
bonds/NNS
on/IN
behalf/NN
of/IN
a/DT
client/NN
./.
Eishi/NNP
Wakabayashi/NNP
,/,
a/DT
Nippon/NNP
Kangyo/NNP
executive/JJ
vice/NN
president/NN
,/,
confirmed/VBD
that/IN
the/DT
firm/NN
``/``
bought/VBD
quite/PDT
a/DT
bit/NN
''/''
yesterday/NN
and/CC
last/JJ
week/NN
,/,
but/CC
he/PRP
declined/VBD
to/TO
elaborate/VB
./.
Last/JJ
Thursday/NNP
,/,
the/DT
firm/NN
was/VBD
said/VBN
to/TO
have/VB
purchased/VBN
close/RB
to/TO
$/$
2/CD
billion/CD
of/IN
long-term/JJ
bonds/NNS
./.
Joel/NNP
Kazis/NNP
,/,
head/NN
of/IN
government/NN
trading/NN
at/IN
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
&/CC
Co./NNP
,/,
said/VBD
the/DT
billion/CD
dollar/NN
bid/NN
``/``
helped/VBD
to/TO
support/VB
the/DT
market/NN
going/VBG
into/IN
the/DT
Refcorp/NN
auction/NN
''/''
and/CC
``/``
showed/VBD
that/IN
there/EX
are/VBP
real/JJ
buyers/NNS
for/IN
long/JJ
bonds/NNS
./.
''/''
The/DT
Treasury/NNP
's/POS
benchmark/JJ
30-year/JJ
bond/NN
,/,
which/WDT
jumped/VBD
1\/2/CD
point/NN
on/IN
the/DT
Nippon/NNP
Kangyo/NNP
bid/NN
,/,
ended/VBD
1\/8/CD
point/NN
higher/JJR
,/,
or/CC
up/RB
$/$
1.25/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
./.
Mortgage-backed/JJ
securities/NNS
rose/VBD
less/JJR
than/IN
1\/8/CD
point/NN
,/,
but/CC
municipal/JJ
bonds/NNS
ended/VBD
unchanged/JJ
to/TO
slightly/RB
lower/JJR
./.
Investment-grade/JJ
corporate/JJ
issues/NNS
and/CC
junk/NN
bonds/NNS
were/VBD
unchanged/JJ
./.
At/IN
the/DT
Resolution/NNP
Funding/NNP
auction/NN
,/,
traders/NNS
said/VBD
much/JJ
of/IN
the/DT
appetite/NN
for/IN
the/DT
new/JJ
30-year/JJ
bonds/NNS
came/VBD
from/IN
dealers/NNS
who/WP
are/VBP
``/``
stripping/VBG
''/''
the/DT
bonds/NNS
and/CC
repackaging/VBG
them/PRP
as/IN
zero-coupon/JJ
securities/NNS
./.
Strips/NNS
are/VBP
created/VBN
by/IN
separating/VBG
the/DT
interest/NN
payment/NN
portion/NN
of/IN
the/DT
bond/NN
from/IN
the/DT
principal/JJ
portion/NN
,/,
called/VBD
the/DT
corpus/NN
./.
The/DT
two/CD
pieces/NNS
are/VBP
then/RB
sold/VBN
separately/RB
at/IN
a/DT
deep/JJ
discount/NN
to/TO
their/PRP$
face/NN
amount/NN
./.
Zero-coupon/JJ
securities/NNS
pay/VBP
no/DT
interest/NN
until/IN
maturity/NN
,/,
with/IN
the/DT
return/NN
to/TO
investors/NNS
consisting/VBG
primarily/RB
of/IN
the/DT
bond/NN
discount/NN
./.
Among/IN
the/DT
big/JJ
buyers/NNS
at/IN
yesterday/NN
's/POS
auction/NN
was/VBD
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc/NNP
./.
Jack/NNP
Norris/NNP
,/,
a/DT
Drexel/NNP
executive/JJ
vice/NN
president/NN
,/,
said/VBD
the/DT
firm/NN
bought/VBD
a/DT
sizable/JJ
share/NN
of/IN
the/DT
bonds/NNS
,/,
but/CC
he/PRP
would/MD
n't/RB
be/VB
specific/JJ
./.
He/PRP
said/VBD
Drexel/NNP
intends/VBZ
to/TO
strip/VB
at/IN
least/JJS
$/$
500/CD
million/CD
of/IN
the/DT
bonds/NNS
the/DT
firm/NN
purchased/VBD
./.
``/``
We/PRP
've/VBP
had/VBD
very/RB
strong/JJ
strip/NN
demand/NN
''/''
from/IN
institutional/JJ
investors/NNS
,/,
he/PRP
said/VBD
./.
Meanwhile/RB
,/,
the/DT
market/NN
paid/VBD
close/JJ
attention/NN
to/TO
comments/NNS
by/IN
Federal/NNP
Reserve/NNP
Chairman/NNP
Alan/NNP
Greenspan/NNP
,/,
who/WP
testified/VBD
before/IN
a/DT
congressional/JJ
hearing/NN
./.
However/RB
,/,
credit/NN
market/NN
analysts/NNS
were/VBD
unable/JJ
to/TO
discern/VB
many/JJ
clues/NNS
about/IN
the/DT
future/JJ
course/NN
of/IN
monetary/JJ
policy/NN
from/IN
the/DT
Fed/NNP
chairman/NN
's/POS
remarks/NNS
./.
Among/IN
other/JJ
things/NNS
,/,
Mr./NNP
Greenspan/NNP
said/VBD
he/PRP
endorses/VBZ
a/DT
bill/NN
by/IN
Rep./NNP
Stephen/NNP
Neal/NNP
D./NNP
,/,
N.C/NNP
./.
that/WDT
would/MD
require/VB
the/DT
Fed/NNP
to/TO
pursue/VB
policies/NNS
aimed/VBN
at/IN
eliminating/VBG
inflation/NN
within/IN
five/CD
years/NNS
./.
Treasury/NNP
,/,
Agency/NN
Securities/NNS
Treasury/NNP
bonds/NNS
ended/VBD
with/IN
small/JJ
gains/NNS
yesterday/NN
,/,
which/WDT
was/VBD
better/JJR
than/IN
some/DT
economists/NNS
had/VBD
expected/VBN
considering/VBG
the/DT
large/JJ
amount/NN
of/IN
new/JJ
supply/NN
that/WDT
has/VBZ
hit/VBN
the/DT
market/NN
this/DT
week/NN
./.
Including/VBG
yesterday/NN
's/POS
$/$
4.52/CD
billion/CD
of/IN
Resolution/NNP
Funding/NNP
bonds/NNS
,/,
the/DT
government/NN
has/VBZ
sold/VBN
$/$
30/CD
billion/CD
in/IN
new/JJ
securities/NNS
this/DT
week/NN
./.
Today/NN
,/,
investors/NNS
will/MD
be/VB
scrutinizing/VBG
the/DT
government/NN
's/POS
report/NN
on/IN
gross/JJ
national/JJ
product/NN
for/IN
the/DT
third/JJ
quarter/NN
./.
Economists/NNS
surveyed/VBN
by/IN
Dow/NNP
Jones/NNP
Capital/NNP
Markets/NNP
Report/NNP
expect/VBP
real/JJ
GNP/NNP
to/TO
have/VB
grown/VBN
at/IN
a/DT
2.5/CD
%/NN
annual/JJ
rate/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
about/RB
the/DT
same/JJ
as/IN
in/IN
the/DT
second/JJ
quarter/NN
./.
The/DT
benchmark/JJ
30-year/JJ
Treasury/NNP
bond/NN
was/VBD
quoted/VBN
late/RB
at/IN
102/CD
22\/32/CD
to/TO
yield/VB
7.88/CD
%/NN
,/,
compared/VBN
with/IN
102/CD
18\/32/CD
to/TO
yield/VB
7.89/CD
%/NN
Tuesday/NNP
./.
The/DT
latest/JJS
10-year/JJ
notes/NNS
were/VBD
quoted/VBN
at/IN
100/CD
24\/32/CD
to/TO
yield/VB
7.87/CD
%/NN
,/,
compared/VBN
with/IN
100/CD
22\/32/CD
to/TO
yield/VB
7.88/CD
%/NN
./.
Here/RB
are/VBP
details/NNS
of/IN
yesterday/NN
's/POS
Resolution/NNP
Funding/NNP
auction/NN
:/:
Rates/NNS
are/VBP
determined/VBN
by/IN
the/DT
difference/NN
between/IN
the/DT
purchase/NN
price/NN
and/CC
face/NN
value/NN
./.
Thus/RB
,/,
higher/JJR
bidding/NN
narrows/VBZ
the/DT
investor/NN
's/POS
return/NN
while/IN
lower/JJR
bidding/NN
widens/VBZ
it/PRP
./.
The/DT
bonds/NNS
are/VBP
dated/VBN
Oct./NNP
30/CD
and/CC
mature/VBP
Oct./NNP
15/CD
,/,
2019/CD
./.
Corporate/JJ
Issues/NNS
Several/JJ
new/JJ
issues/NNS
hit/VBD
the/DT
corporate/JJ
market/NN
yesterday/NN
./.
Among/IN
the/DT
new/JJ
issues/NNS
was/VBD
Arco/NNP
Chemical/NNP
Co./NNP
's/POS
$/$
100/CD
million/CD
in/IN
30-year/JJ
debentures/NNS
,/,
which/WDT
were/VBD
priced/VBN
to/TO
yield/VB
9.50/CD
%/NN
./.
In/IN
the/DT
junk/NN
bond/NN
market/NN
,/,
Blockbuster/NNP
Entertainment/NNP
Corp./NNP
issued/VBD
$/$
300/CD
million/CD
of/IN
zero-coupon/JJ
convertible/JJ
notes/NNS
,/,
also/RB
known/VBN
as/IN
liquid/JJ
yield/NN
option/NN
notes/NNS
./.
The/DT
notes/NNS
,/,
underwritten/VBN
by/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
,/,
were/VBD
priced/VBN
at/IN
$/$
308.32/CD
per/IN
$/$
1,000/CD
note/NN
to/TO
yield/VB
8/CD
%/NN
./.
The/DT
size/NN
of/IN
the/DT
offering/NN
was/VBD
increased/VBN
from/IN
the/DT
originally/RB
planned/VBN
$/$
250/CD
million/CD
redemption/NN
amount/NN
./.
In/IN
secondary/JJ
trading/NN
,/,
prices/NNS
of/IN
investment/NN
grade/NN
and/CC
high-yield/JJ
,/,
high-risk/JJ
junk/NN
bonds/NNS
ended/VBD
unchanged/JJ
yesterday/NN
./.
However/RB
,/,
there/EX
were/VBD
some/DT
notable/JJ
exceptions/NNS
./.
Certain/NNP
SCI/NNP
Television/NNP
Inc./NNP
junk/NN
bonds/NNS
fell/VBD
after/IN
the/DT
company/NN
announced/VBD
a/DT
debt/NN
exchange/NN
offer/NN
./.
Meanwhile/RB
,/,
junk/NN
bonds/NNS
of/IN
Public/NNP
Service/NNP
Co./NNP
of/IN
New/NNP
Hampshire/NNP
surged/VBD
on/IN
news/NN
of/IN
a/DT
bidding/NN
war/NN
./.
As/IN
expected/VBN
,/,
Donaldson/NNP
Lufkin/NNP
&/CC
Jenrette/NNP
Securities/NNP
Corp./NNP
postponed/VBD
a/DT
$/$
1.15/CD
billion/CD
junk/NN
bond/NN
offering/NN
for/IN
TW/NNP
Services/NNP
Inc/NNP
./.
Donaldson/NNP
Lufkin/NNP
said/VBD
takeover-related/JJ
financing/NN
is/VBZ
being/VBG
restructured/VBN
to/TO
include/VB
more/JJR
equity/NN
and/CC
less/JJR
debt/NN
./.
The/DT
investment/NN
banker/NN
said/VBD
the/DT
new/JJ
deal/NN
under/IN
consideration/NN
calls/VBZ
for/IN
$/$
600/CD
million/CD
to/TO
$/$
700/CD
million/CD
in/IN
high-yield/JJ
debt/NN
to/TO
be/VB
offered/VBN
./.
Mortgage-Backed/JJ
Securities/NNS
Mortgage/NN
securities/NNS
ended/VBD
2\/32/CD
to/TO
3\/32/CD
point/NN
higher/JJR
after/IN
giving/VBG
up/RP
early/JJ
gains/NNS
of/IN
as/RB
much/JJ
as/IN
8\/32/CD
./.
Government/NNP
National/NNP
Mortgage/NNP
Association/NNP
8/CD
%/NN
securities/NNS
for/IN
November/NNP
delivery/NN
finished/VBD
at/IN
94/CD
1\/4/CD
,/,
up/RB
3\/32/CD
;/:
9/CD
%/NN
securities/NNS
at/IN
98/CD
18\/32/CD
,/,
up/RB
3\/32/CD
;/:
9/CD
1\/2/CD
%/NN
securities/NNS
at/IN
100/CD
18\/32/CD
,/,
up/RB
3\/32/CD
;/:
and/CC
10/CD
%/JJ
securities/NNS
at/IN
102/CD
14\/32/CD
,/,
up/RB
3\/32/CD
./.
Federal/NNP
Home/NNP
Loan/NNP
Mortgage/NNP
Corp./NNP
9/CD
%/NN
securities/NNS
were/VBD
at/IN
97/CD
23\/32/CD
,/,
up/RB
2\/32/CD
./.
The/DT
Ginnie/NNP
Mae/NNP
9/CD
%/NN
issue/NN
was/VBD
yielding/VBG
9.32/CD
%/NN
to/TO
a/DT
12-year/JJ
average/JJ
life/NN
assumption/NN
,/,
as/IN
the/DT
spread/NN
above/IN
the/DT
Treasury/NNP
10-year/JJ
note/NN
held/VBD
at/IN
1.46/CD
percentage/NN
points/NNS
./.
In/IN
derivative/JJ
markets/NNS
,/,
the/DT
Federal/NNP
National/NNP
Mortgage/NNP
Association/NNP
issued/VBD
a/DT
$/$
300/CD
million/CD
real/JJ
estate/NN
mortgage/NN
investment/NN
conduit/NN
backed/VBD
by/IN
its/PRP$
9/CD
%/NN
securities/NNS
through/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
./.
Municipals/NNS
Bidding/NN
for/IN
a/DT
$/$
223/CD
million/CD
sell/JJ
list/NN
and/CC
a/DT
handful/NN
of/IN
medium-sized/JJ
new/JJ
issues/NNS
dominated/VBD
an/DT
otherwise/RB
uneventful/JJ
session/NN
./.
Active/JJ
dollar/NN
bond/NN
issues/NNS
were/VBD
mostly/RB
unchanged/JJ
to/TO
off/RB
1\/8/CD
in/IN
light/JJ
late/JJ
dealings/NNS
./.
The/DT
176-item/JJ
bid/NN
list/NN
was/VBD
made/VBN
up/RP
largely/RB
of/IN
bonds/NNS
due/JJ
in/IN
eight/CD
years/NNS
or/CC
less/RBR|JJR
,/,
with/IN
most/JJS
maturing/VBG
within/IN
five/CD
years/NNS
./.
Many/JJ
are/VBP
state/NN
general/JJ
obligations/NNS
./.
In/IN
the/DT
new/JJ
issue/NN
arena/NN
,/,
underwriters/NNS
led/VBN
by/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
set/VBD
the/DT
preliminary/JJ
pricing/NN
for/IN
$/$
80/CD
million/CD
of/IN
Michigan/NNP
general/JJ
obligation/NN
bonds/NNS
,/,
the/DT
first/JJ
offering/NN
of/IN
such/JJ
debt/NN
by/IN
the/DT
state/NN
since/IN
1986/CD
./.
The/DT
sale/NN
was/VBD
designed/VBN
by/IN
state/NN
officials/NNS
to/TO
stimulate/VB
savings/NNS
by/IN
residents/NNS
./.
The/DT
issue/NN
launches/VBZ
an/DT
$/$
800/CD
million/CD
bond/NN
program/NN
,/,
given/VBN
the/DT
go-ahead/NN
by/IN
voters/NNS
in/IN
November/NNP
1988/CD
,/,
to/TO
fund/VB
environmental/JJ
protection/NN
and/CC
recreation/NN
projects/NNS
./.
Another/DT
Shearson/NNP
group/NN
had/VBD
the/DT
winning/VBG
bid/NN
for/IN
$/$
134.8/CD
million/CD
of/IN
wastewater/NN
system/NN
improvement/NN
revenue/NN
bonds/NNS
issued/VBN
by/IN
the/DT
Trinity/NNP
River/NNP
Authority/NNP
of/IN
Texas/NNP
./.
The/DT
bonds/NNS
yield/VBP
from/IN
6.30/CD
%/NN
in/IN
1992/CD
to/TO
7.25/CD
%/NN
in/IN
2016/CD
./.
An/DT
unsold/JJ
balance/NN
of/IN
$/$
22.2/CD
million/CD
remained/VBD
in/IN
late/JJ
order-taking/NN
./.
Foreign/JJ
Bonds/NNS
Most/JJS
foreign/JJ
government/NN
bond/NN
prices/NNS
rose/VBD
in/IN
light/JJ
trading/NN
./.
Mark/NNP
bonds/NNS
rose/VBD
about/RB
1\/8/CD
point/NN
./.
The/DT
7/CD
%/NN
bond/NN
due/JJ
October/NNP
1999/CD
rose/VBD
0.12/CD
to/TO
100.05/CD
to/TO
yield/VB
6.99/CD
%/NN
,/,
while/IN
the/DT
6/CD
3\/4/CD
%/NN
notes/NNS
due/JJ
July/NNP
1994/CD
rose/VBD
0.05/CD
to/TO
97.75/CD
to/TO
yield/VB
7.32/CD
%/NN
./.
Britain/NNP
's/POS
11/CD
3\/4/CD
%/NN
bond/NN
due/JJ
2003\/2007/CD
rose/VBD
15\/32/CD
to/TO
112/CD
21\/32/CD
to/TO
yield/VB
9.94/CD
%/NN
,/,
while/IN
the/DT
11/CD
3\/4/CD
%/NN
notes/NNS
due/JJ
1991/CD
rose/VBD
1\/8/CD
to/TO
98/CD
25\/32/CD
to/TO
yield/VB
12.78/CD
%/NN
./.
Japan/NNP
's/POS
No./NN
111/CD
4.6/CD
%/NN
bond/NN
due/JJ
1998/CD
ended/VBD
on/IN
brokers/NNS
'/POS
screens/NNS
at/IN
95.53/CD
,/,
up/RB
0.31/CD
,/,
to/TO
yield/VB
5.355/CD
%/NN
./.
Marsh/NNP
&/CC
McLennan/NNP
Cos./NNP
said/VBD
it/PRP
agreed/VBD
to/TO
acquire/VB
the/DT
rest/NN
of/IN
Gradmann/NNP
&/CC
Holler/NNP
,/,
a/DT
leading/VBG
West/JJ
German/JJ
insurance/NN
brokerage/NN
firm/NN
in/IN
which/WDT
it/PRP
has/VBZ
held/VBN
a/DT
15/CD
%/NN
stake/NN
for/IN
15/CD
years/NNS
./.
The/DT
transaction/NN
,/,
for/IN
cash/NN
and/CC
stock/NN
,/,
would/MD
represent/VB
the/DT
biggest/JJS
European/JJ
takeover/NN
since/IN
1980/CD
for/IN
New/NNP
York-based/JJ
Marsh/NNP
&/CC
McLennan/NNP
,/,
the/DT
world/NN
's/POS
largest/JJS
insurance/NN
broker/NN
./.
It/PRP
's/VBZ
also/RB
the/DT
first/RB
major/JJ
sign/NN
of/IN
the/DT
long-awaited/JJ
consolidation/NN
in/IN
the/DT
European/JJ
insurance/NN
industry/NN
as/IN
the/DT
European/NNP
Community/NNP
Commission/NNP
moves/VBZ
toward/IN
a/DT
single/JJ
market/NN
by/IN
1992/CD
./.
Protective/JJ
barriers/NNS
will/MD
start/VB
coming/VBG
down/IN
within/IN
the/DT
insurance/NN
industry/NN
next/IN
summer/NN
,/,
when/WRB
big/JJ
industrial/JJ
companies/NNS
will/MD
be/VB
able/JJ
to/TO
buy/VB
insurance/NN
from/IN
carriers/NNS
in/IN
any/DT
other/JJ
EC/NNP
country/NN
for/IN
the/DT
first/JJ
time/NN
./.
That/DT
's/VBZ
why/WRB
``/``
we/PRP
have/VBP
been/VBN
working/VBG
hard/RB
to/TO
develop/VB
a/DT
single/JJ
,/,
more/RBR
unified/VBN
presence/NN
in/IN
Europe/NNP
,/,
''/''
said/VBD
A.J.C./NNP
Smith/NNP
,/,
Marsh/NNP
&/CC
McLennan/NNP
's/POS
president/NN
,/,
at/IN
a/DT
London/NNP
news/NN
conference/NN
yesterday/NN
./.
Analysts/NNS
speculated/VBD
that/IN
Marsh/NNP
&/CC
McLennan/NNP
would/MD
spend/VB
between/IN
250/CD
million/CD
marks/NNS
$/$
136.4/CD
million/CD
350/CD
million/CD
marks/NNS
for/IN
the/DT
rest/NN
of/IN
Gradmann/NNP
&/CC
Holler/NNP
,/,
or/CC
roughly/RB
25/CD
to/TO
30/CD
times/NNS
the/DT
private/JJ
firm/NN
's/POS
estimated/VBN
earnings/NNS
./.
``/``
This/DT
is/VBZ
paying/VBG
a/DT
big/JJ
price/NN
to/TO
maintain/VB
their/PRP$
virility/NN
as/IN
the/DT
world/NN
's/POS
leading/VBG
insurance/NN
broker/NN
,/,
''/''
said/VBD
Philip/NNP
Olsen/NNP
,/,
an/DT
analyst/NN
at/IN
Kitcat/NNP
&/CC
Aitken/NNP
,/,
a/DT
U.K./NNP
brokerage/NN
firm/NN
./.
Earlier/RBR
this/DT
year/NN
,/,
New/NNP
York/NNP
Life/NNP
Insurance/NNP
Co./NNP
agreed/VBD
to/TO
acquire/VB
Windsor/NNP
Group/NNP
Ltd./NNP
,/,
a/DT
first/JJ
step/NN
toward/IN
establishing/VBG
a/DT
presence/NN
in/IN
the/DT
European/JJ
market/NN
ahead/RB
of/IN
1992/CD
./.
But/CC
most/JJS
U.S./NNP
insurers/NNS
have/VBP
n't/RB
rushed/VBN
to/TO
change/VB
the/DT
way/NN
they/PRP
do/VBP
business/NN
in/IN
Europe/NNP
because/IN
they/PRP
believe/VBP
the/DT
European/JJ
market/NN
will/MD
still/RB
be/VB
dominated/VBN
by/IN
a/DT
handful/NN
of/IN
domestic/JJ
companies/NNS
./.
Under/IN
the/DT
proposed/VBN
combination/NN
,/,
Marsh/NNP
&/CC
McLennan/NNP
would/MD
gain/VB
a/DT
majority/NN
stake/NN
in/IN
Gradmann/NNP
&/CC
Holler/NNP
that/WDT
would/MD
increase/VB
over/IN
time/NN
to/TO
the/DT
rest/NN
of/IN
the/DT
remaining/VBG
85/CD
%/NN
./.
The/DT
three/CD
managing/VBG
general/JJ
partners/NNS
would/MD
receive/VB
a/DT
``/``
significant/JJ
''/''
number/NN
of/IN
Marsh/NNP
&/CC
McLennan/NNP
shares/NNS
,/,
said/VBD
Walther/NNP
L./NNP
Kiep/NNP
,/,
a/DT
partner/NN
who/WP
would/MD
also/RB
join/VB
Marsh/NNP
&/CC
McLennan/NNP
's/POS
board/NN
./.
Mr./NNP
Kiep/NNP
said/VBD
he/PRP
sought/VBD
the/DT
combination/NN
because/IN
``/``
all/DT
our/PRP$
large/JJ
clients/NNS
in/IN
Germany/NNP
are/VBP
becoming/VBG
European/NNP
companies/NNS
or/CC
multinational/JJ
companies/NNS
and/CC
they/PRP
expect/VB
an/DT
insurance/NN
broker/NN
''/''
to/TO
serve/VB
them/PRP
as/RB
well/RB
in/IN
Paris/NNP
as/IN
in/IN
Germany/NNP
./.
Beatrice/NNP
E./NNP
Garcia/NNP
in/IN
Philadelphia/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
WASHINGTON/NNP
--/:
United/NNP
Technologies/NNPS
Corp./NNP
won/VBD
an/DT
$/$
18/CD
million/CD
Army/NNP
contract/NN
for/IN
helicopter/NN
modifications/NNS
and/CC
spare/JJ
parts/NNS
./.
The/DT
company/NN
will/MD
modify/VB
one/CD
UH-60A/NNP
Blackhawk/NNP
transport/NN
helicopter/NN
to/TO
the/DT
prototype/NN
MH-60K/NN
configuration/NN
for/IN
use/NN
by/IN
military/JJ
special/JJ
forces/NNS
./.
Ingalls/NNP
Shipbuilding/NNP
Inc./NNP
,/,
a/DT
division/NN
of/IN
Litton/NNP
Industries/NNP
Inc./NNP
,/,
was/VBD
given/VBN
a/DT
$/$
15.5/CD
million/CD
extension/NN
on/IN
a/DT
contract/NN
for/IN
shipyard/NN
services/NNS
./.
Furukawa/NNP
Electric/NNP
Co./NNP
said/VBD
it/PRP
plans/VBZ
to/TO
increase/VB
production/NN
of/IN
computer/NN
memory/NN
devices/NNS
on/IN
a/DT
large/JJ
scale/NN
in/IN
the/DT
U.S./NNP
and/CC
Japan/NNP
./.
As/IN
part/NN
of/IN
the/DT
move/NN
,/,
its/PRP$
affiliated/VBN
U.S./NNP
company/NN
,/,
International/NNP
Components/NNP
Technology/NNP
Corp./NNP
,/,
purchased/VBD
a/DT
Mexican/JJ
plant/NN
formerly/RB
belonging/VBG
to/TO
KSI/NNP
Disc/NNP
Products/NNP
Inc/NNP
./.
The/DT
price/NN
was/VBD
n't/RB
disclosed/VBN
./.
Together/RB
with/IN
two/CD
existing/VBG
plants/NNS
in/IN
the/DT
U.S./NNP
,/,
Furukawa/NNP
said/VBD
it/PRP
will/MD
expand/VB
its/PRP$
current/JJ
local/JJ
monthly/JJ
production/NN
of/IN
memory/NN
disks/NNS
to/TO
1.4/CD
million/CD
sheets/NNS
from/IN
800,000/CD
./.
In/IN
Japan/NNP
,/,
Furukawa/NNP
said/VBD
it/PRP
will/MD
raise/VB
production/NN
at/IN
a/DT
plant/NN
outside/IN
Tokyo/NNP
to/TO
300,000/CD
sheets/NNS
monthly/JJ
from/IN
100,000/CD
./.
Furukawa/NNP
said/VBD
the/DT
U.S./NNP
market/NN
is/VBZ
strengthening/VBG
as/RB
related/VBN
computer/NN
technology/NN
gains/VBZ
in/IN
sophistication/NN
and/CC
quality/NN
./.
PRIMERICA/NNP
Corp./NNP
,/,
New/NNP
York/NNP
,/,
raised/VBD
its/PRP$
quarterly/JJ
14/CD
%/NN
to/TO
eight/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
seven/CD
cents/NNS
,/,
payable/JJ
Nov./NNP
24/CD
to/TO
stock/NN
of/IN
record/NN
Nov./NNP
6/CD
./.
The/DT
financial/JJ
services/NNS
company/NN
,/,
which/WDT
has/VBZ
about/IN
98.8/CD
million/CD
shares/NNS
outstanding/JJ
,/,
noted/VBD
its/PRP$
``/``
continued/VBN
confidence/NN
in/IN
the/DT
ongoing/JJ
strength/NN
of/IN
the/DT
operations/NNS
./.
''/''
Compaq/NNP
Computer/NNP
Corp./NNP
said/VBD
that/IN
its/PRP$
net/NN
income/NN
rose/VBD
51/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
bolstered/VBN
by/IN
unusual/JJ
gains/NNS
from/IN
its/PRP$
investment/NN
in/IN
a/DT
disk-drive/NN
maker/NN
and/CC
reflecting/VBG
continued/VBN
growth/NN
in/IN
its/PRP$
European/JJ
operations/NNS
./.
The/DT
computer/NN
maker/NN
said/VBD
net/NN
jumped/VBD
to/TO
$/$
87/CD
million/CD
,/,
or/CC
$/$
2.02/CD
a/DT
share/NN
,/,
from/IN
$/$
58/CD
million/CD
,/,
or/CC
$/$
1.40/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
increased/VBD
36/CD
%/NN
to/TO
$/$
683/CD
million/CD
from/IN
$/$
502/CD
million/CD
./.
The/DT
latest/JJS
quarter/NN
's/POS
results/NNS
,/,
however/RB
,/,
included/VBD
a/DT
pretax/NN
gain/NN
of/IN
$/$
13.7/CD
million/CD
,/,
or/CC
20/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
carrying/VBG
value/NN
of/IN
the/DT
company/NN
's/POS
investment/NN
in/IN
Conner/NNP
Peripherals/NNPS
Inc./NNP
and/CC
a/DT
$/$
7.6/CD
million/CD
gain/NN
,/,
or/CC
11/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
the/DT
sale/NN
of/IN
one/CD
million/CD
Conner/NNP
shares/NNS
./.
Net/NN
for/IN
the/DT
nine/CD
months/NNS
was/VBD
$/$
254/CD
million/CD
,/,
or/CC
$/$
5.94/CD
a/DT
share/NN
,/,
up/RB
56/CD
%/NN
from/IN
$/$
163/CD
million/CD
,/,
or/CC
$/$
4.06/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
rose/VBD
50/CD
%/NN
to/TO
$/$
2.1/CD
billion/CD
from/IN
$/$
1.4/CD
billion/CD
./.
Net/NN
for/IN
the/DT
year-earlier/JJ
nine/CD
months/NNS
also/RB
included/VBD
a/DT
gain/NN
of/IN
$/$
9.7/CD
million/CD
,/,
or/CC
15/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
carrying/VBG
value/NN
of/IN
the/DT
Conner/NNP
investment/NN
./.
Michael/NNP
Swavely/NNP
,/,
president/NN
of/IN
Compaq/NNP
's/POS
North/NNP
America/NNP
division/NN
,/,
attributed/VBD
the/DT
company/NN
's/POS
third-quarter/NN
performance/NN
to/TO
continued/VBN
increases/NNS
in/IN
international/JJ
sales/NNS
,/,
which/WDT
accounted/VBD
for/IN
43/CD
%/NN
of/IN
the/DT
company/NN
's/POS
sales/NNS
,/,
a/DT
74/CD
%/NN
increase/NN
from/IN
a/DT
year/NN
earlier/RBR
./.
``/``
Over/IN
the/DT
next/JJ
couple/NN
of/IN
years/NNS
we/PRP
would/MD
not/RB
be/VB
surprised/VBN
to/TO
see/VB
Europe/NNP
and/CC
international/JJ
sales/NNS
50/CD
%/NN
of/IN
the/DT
company/NN
's/POS
revenues/NNS
,/,
''/''
he/PRP
said/VBD
./.
During/IN
the/DT
third/JJ
quarter/NN
,/,
Compaq/NNP
purchased/VBD
a/DT
former/JJ
Wang/NNP
Laboratories/NNPS
manufacturing/VBG
facility/NN
in/IN
Stirling/NNP
,/,
Scotland/NNP
,/,
which/WDT
will/MD
be/VB
used/VBN
for/IN
international/JJ
service/NN
and/CC
repair/NN
operations/NNS
./.
Mr./NNP
Swavely/NNP
said/VBD
the/DT
new/JJ
space/NN
will/MD
allow/VB
Compaq/NNP
to/TO
increase/VB
the/DT
manufacturing/VBG
capacity/NN
of/IN
its/PRP$
plant/NN
in/IN
Erskine/NNP
,/,
Scotland/NNP
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
Compaq/NNP
shares/NNS
fell/VBD
$/$
1.625/CD
to/TO
$/$
108.625/CD
./.
Wilson/NNP
H./NNP
Taylor/NNP
,/,
president/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
this/DT
insurance/NN
and/CC
financial/JJ
services/NNS
concern/NN
,/,
was/VBD
elected/VBN
to/TO
the/DT
additional/JJ
post/NN
of/IN
chairman/NN
./.
Mr./NNP
Taylor/NNP
,/,
45/CD
years/NNS
old/JJ
,/,
succeeds/VBZ
Robert/NNP
D./NNP
Kilpatrick/NNP
,/,
64/CD
,/,
who/WP
is/VBZ
retiring/VBG
,/,
as/IN
reported/VBN
earlier/RBR
./.
Mr./NNP
Kilpatrick/NNP
will/MD
remain/VB
a/DT
director/NN
./.
Diversified/NNP
Investment/NNP
Group/NNP
Inc./NNP
said/VBD
it/PRP
agreed/VBD
to/TO
be/VB
acquired/VBN
by/IN
Star/NNP
States/NNPS
Corp./NNP
for/IN
stock/NN
valued/VBN
at/IN
$/$
13.75/CD
a/DT
share/NN
,/,
or/CC
about/IN
$/$
24.4/CD
million/CD
./.
Diversified/NNP
,/,
the/DT
holding/VBG
company/NN
for/IN
Fidelity/NNP
Federal/NNP
Savings/NNP
&/CC
Loan/NNP
Association/NNP
,/,
said/VBD
the/DT
agreement/NN
also/RB
gives/VBZ
Star/NNP
States/NNPS
the/DT
option/NN
to/TO
acquire/VB
588,300/CD
of/IN
Diversified/NNP
's/POS
1,774,326/CD
shares/NNS
outstanding/JJ
``/``
under/IN
certain/JJ
circumstances/NNS
./.
''/''
The/DT
acquisition/NN
would/MD
give/VB
Wilmington/NNP
,/,
Del.-based/JJ
Star/NNP
States/NNPS
access/NN
to/TO
the/DT
Pennsylvania/NNP
market/NN
./.
The/DT
agreement/NN
is/VBZ
subject/JJ
to/TO
regulatory/JJ
approval/NN
and/CC
resolution/NN
of/IN
lawsuits/NNS
brought/VBN
by/IN
certain/JJ
Diversified/NNP
holders/NNS
in/IN
connection/NN
with/IN
the/DT
proposed/VBN
merger/NN
./.
Chandler/NNP
Insurance/NNP
Co./NNP
said/VBD
it/PRP
expects/VBZ
to/TO
report/VB
third-quarter/NN
net/JJ
income/NN
jumped/VBD
97/CD
%/NN
to/TO
$/$
2.8/CD
million/CD
,/,
or/CC
51/CD
cents/NNS
a/DT
share/NN
./.
In/IN
the/DT
year-earlier/JJ
quarter/NN
,/,
the/DT
automobile/NN
and/CC
trucking/NN
insurer/NN
had/VBD
earnings/NNS
of/IN
$/$
1.4/CD
million/CD
,/,
or/CC
48/CD
cents/NNS
a/DT
share/NN
on/IN
a/DT
restated/VBN
basis/NN
,/,
on/IN
revenue/NN
of/IN
$/$
16.5/CD
million/CD
./.
In/IN
an/DT
interview/NN
,/,
W./NNP
Brent/NNP
LeGere/NNP
,/,
chairman/NN
and/CC
chief/NN
executive/NN
officer/NN
,/,
said/VBD
he/PRP
expects/VBZ
revenue/NN
in/IN
the/DT
latest/JJS
quarter/NN
to/TO
total/VB
about/IN
$/$
28/CD
million/CD
./.
The/DT
earnings-per-share/JJ
figures/NNS
reflect/VBP
a/DT
25/CD
%/NN
stock/NN
dividend/NN
in/IN
June/NNP
1989/CD
./.
Mr./NNP
LeGere/NNP
attributed/VBD
the/DT
earnings/NNS
increase/NN
to/TO
growth/NN
in/IN
the/DT
company/NN
's/POS
longhaul/NN
trucking/NN
insurance/NN
lines/NNS
and/CC
the/DT
ability/NN
to/TO
keep/VB
premium/NN
rates/NNS
firm/JJ
./.
Calgon/NNP
Carbon/NNP
Corp./NNP
said/VBD
it/PRP
will/MD
build/VB
a/DT
$/$
40/CD
million/CD
plant/NN
for/IN
producing/VBG
granular/JJ
activated/VBN
carbon/NN
./.
The/DT
maker/NN
of/IN
water-treatment/JJ
chemicals/NNS
and/CC
equipment/NN
said/VBD
it/PRP
will/MD
select/VB
the/DT
plant/NN
site/NN
early/JJ
next/JJ
year/NN
,/,
and/CC
production/NN
is/VBZ
expected/VBN
to/TO
begin/VB
in/IN
1991/CD
./.
Call/VB
Jim/NNP
Wright/NNP
's/POS
office/NN
in/IN
downtown/NN
Fort/NNP
Worth/NNP
,/,
Texas/NNP
,/,
these/DT
days/NNS
and/CC
the/DT
receptionist/NN
still/RB
answers/VBZ
the/DT
phone/NN
,/,
``/``
Speaker/NNP
Wright/NNP
's/POS
office/NN
./.
''/''
The/DT
former/JJ
congressman/NN
,/,
who/WP
resigned/VBD
as/IN
speaker/NN
of/IN
the/DT
House/NNP
after/IN
an/DT
investigation/NN
of/IN
his/PRP$
financial/JJ
dealings/NNS
,/,
is/VBZ
ensconced/VBN
in/IN
his/PRP$
district/NN
office/NN
,/,
maintained/VBN
by/IN
taxpayers/NNS
on/IN
a/DT
$/$
200,000/CD
allowance/NN
./.
He/PRP
is/VBZ
negotiating/VBG
a/DT
rich/JJ
book/NN
contract/NN
to/TO
boot/NN
./.
One/CD
of/IN
the/DT
hottest/JJS
tickets/NNS
on/IN
Washington/NNP
's/POS
social/JJ
calendar/NN
this/DT
fall/NN
was/VBD
a/DT
charity/NN
benefit/NN
honoring/VBG
former/JJ
Congressman/NNP
Tony/NNP
Coelho/NNP
,/,
who/WP
landed/VBD
a/DT
million-dollar/JJ
job/NN
on/IN
Wall/NNP
Street/NNP
after/IN
resigning/VBG
over/IN
a/DT
controversial/JJ
junk-bond/NN
investment/NN
last/JJ
summer/NN
./.
Michael/NNP
Deaver/NNP
,/,
the/DT
former/JJ
White/NNP
House/NNP
aide/NN
,/,
has/VBZ
become/VBN
the/DT
most/RBS
recent/JJ
addition/NN
to/TO
the/DT
teeming/VBG
ranks/NNS
of/IN
fallen/VBN
politicians/NNS
and/CC
officials/NNS
earning/VBG
their/PRP$
way/NN
as/IN
lobbyists/NNS
and/CC
consultants/NNS
here/RB
./.
Mr./NNP
Deaver/NNP
has/VBZ
reopened/VBN
a/DT
public-relations/NNS
business/NN
./.
Surviving/VBG
scandal/NN
has/VBZ
become/VBN
a/DT
rite/NN
of/IN
political/JJ
passage/NN
at/IN
a/DT
time/NN
when/WRB
a/DT
glut/NN
of/IN
scandal/NN
has/VBZ
blunted/VBN
this/DT
town/NN
's/POS
sensibility/NN
./.
Let/VB
the/DT
president/NN
demand/VB
strict/JJ
new/JJ
ethics/NNS
rules/NNS
:/:
With/IN
four/CD
sitting/VBG
House/NNP
members/NNS
accused/VBN
of/IN
sexual/JJ
misdeeds/NNS
,/,
amid/IN
the/DT
unfolding/VBG
HUD/NNP
scandal/NN
and/CC
after/IN
the/DT
Wright/NNP
debacle/NN
,/,
``/``
people/NNS
are/VBP
slightly/RB
dulled/VBN
by/IN
scandal/NN
,/,
''/''
says/VBZ
political/JJ
humorist/NN
Art/NNP
Buchwald/NNP
./.
``/``
It/PRP
now/RB
takes/VBZ
something/NN
really/RB
weird/JJ
to/TO
inspire/VB
public/JJ
outrage/NN
./.
''/''
Not/RB
all/PDT
the/DT
scandal-tripped/JJ
have/VBP
enjoyed/VBN
soft/JJ
landings/NNS
./.
But/CC
many/JJ
have/VBP
./.
``/``
These/DT
people/NNS
bounce/VBP
back/RB
more/RBR
resiliently/RB
than/IN
regular/JJ
people/NNS
,/,
''/''
says/VBZ
Washington/NNP
writer/NN
Suzanne/NNP
Garment/NNP
,/,
who/WP
is/VBZ
working/VBG
on/IN
a/DT
history/NN
of/IN
post-Watergate/JJ
scandal/NN
./.
Given/VBN
their/PRP$
own/JJ
penchant/NN
for/IN
book/NN
writing/NN
,/,
it/PRP
is/VBZ
surprising/JJ
that/IN
none/NN
of/IN
the/DT
masters/NNS
of/IN
scandal/NN
survival/NN
have/VBP
yet/RB
published/VBN
a/DT
guide/NN
to/TO
the/DT
art/NN
./.
For/IN
there/EX
is/VBZ
an/DT
emerging/VBG
protocol/NN
--/:
indeed/RB
,/,
an/DT
etiquette/NN
--/:
to/TO
it/PRP
./.
Among/IN
the/DT
rules/NNS
:/:
Pretend/VB
Nothing/NN
Happened/VBD
As/IN
if/IN
he/PRP
were/VBD
still/RB
in/IN
his/PRP$
old/JJ
job/NN
,/,
Mr./NNP
Wright/NNP
,/,
by/IN
resigning/VBG
with/IN
his/PRP$
title/NN
instead/RB
of/IN
being/VBG
forced/VBN
from/IN
his/PRP$
job/NN
,/,
by/IN
law/NN
enjoys/VBZ
a/DT
$/$
120,000/CD
annual/JJ
office/NN
expense/NN
allowance/NN
,/,
three/CD
paid/VBN
staffers/NNS
,/,
up/RB
to/TO
$/$
67,000/CD
for/IN
stationery/NN
and/CC
telephones/NNS
and/CC
continued/VBN
use/NN
of/IN
the/DT
franking/NN
privilege/NN
./.
Not/RB
to/TO
mention/VB
a/DT
generous/JJ
federal/JJ
pension/NN
./.
There/EX
is/VBZ
also/RB
a/DT
busy/JJ
schedule/NN
of/IN
speaking/NN
engagements/NNS
at/IN
$/$
10,000/CD
a/DT
pop/NN
,/,
at/IN
tony/JJ
places/NNS
including/VBG
the/DT
Yale/NNP
Political/NNP
Union/NNP
./.
``/``
He/PRP
's/VBZ
as/RB
busy/JJ
as/IN
he/PRP
was/VBD
as/RB
speaker/NN
,/,
''/''
reports/VBZ
Mr./NNP
Wright/NNP
's/POS
administrative/JJ
aide/NN
,/,
Larry/NNP
Shannon/NNP
./.
Atone/VB
On/IN
the/DT
edge/NN
of/IN
fashionable/JJ
Georgetown/NNP
,/,
in/IN
a/DT
chic/JJ
office/NN
with/IN
a/DT
river/NN
view/NN
and/CC
a/DT
number/NN
of/IN
corporate/JJ
clients/NNS
whom/WP
he/PRP
wo/MD
n't/RB
name/VB
,/,
Mr./NNP
Deaver/NNP
is/VBZ
trying/VBG
to/TO
reclaim/VB
his/PRP$
reputation/NN
as/IN
one/NN
of/IN
the/DT
savviest/JJS
image/NN
makers/NNS
in/IN
town/NN
./.
There/EX
are/VBP
few/JJ
mementos/NNS
of/IN
his/PRP$
days/NNS
as/IN
White/NNP
House/NNP
deputy/NN
chief/NN
of/IN
staff/NN
and/CC
confidant/NN
of/IN
Ronald/NNP
and/CC
Nancy/NNP
Reagan/NNP
./.
The/DT
former/JJ
$/$
3/CD
million-a-year/JJ
lobbyist/NN
now/RB
frequents/VBZ
shelters/NNS
for/IN
the/DT
homeless/NN
and/CC
devotes/VBZ
a/DT
third/JJ
of/IN
his/PRP$
time/NN
counseling/VBG
other/JJ
recovering/VBG
alcoholics/NNS
./.
``/``
I/PRP
feel/VBP
better/RB
than/IN
I/PRP
ever/RB
have/VBP
in/IN
my/PRP$
life/NN
,/,
''/''
he/PRP
says/VBZ
./.
Mr./NNP
Deaver/NNP
confessed/VBD
to/TO
his/PRP$
alcoholism/NN
during/IN
his/PRP$
trial/NN
on/IN
perjury/NN
charges/NNS
./.
He/PRP
is/VBZ
also/RB
a/DT
recovering/VBG
workaholic/JJ
,/,
relaxing/VBG
with/IN
his/PRP$
family/NN
and/CC
creating/VBG
topiary/JJ
,/,
or/CC
garden-shrub/NN
sculpture/NN
,/,
a/DT
fashionable/JJ
pursuit/NN
for/IN
which/WDT
he/PRP
developed/VBD
a/DT
passion/NN
during/IN
his/PRP$
three-year/JJ
legal/JJ
ordeal/NN
./.
One/CD
sign/NN
of/IN
Mr./NNP
Deaver/NNP
's/POS
renaissance/NN
:/:
an/DT
appearance/NN
on/IN
ABC/NNP
's/POS
``/``
Nightline/NNP
''/''
for/IN
a/DT
show/NN
on/IN
pack/NN
journalism/NN
./.
Host/NNP
Ted/NNP
Koppel/NNP
introduced/VBD
him/PRP
as/IN
``/``
the/DT
media/NNS
master/NN
of/IN
the/DT
Reagan/NNP
Administration/NNP
,/,
''/''
with/IN
nary/PDT
a/DT
mention/NN
of/IN
Mr./NNP
Deaver/NNP
's/POS
conviction/NN
in/IN
1987/CD
on/IN
perjury/NN
charges/NNS
./.
Finding/NNP
God/NNP
``/``
When/WRB
someone/NN
says/VBZ
,/,
`/``
I/PRP
've/VBP
turned/VBN
to/TO
God/NNP
,/,
'/''
everybody/NN
lays/VBZ
off/IN
,/,
''/''
observes/VBZ
Frank/NNP
Mankiewicz/NNP
,/,
an/DT
old/JJ
Washington/NNP
hand/NN
and/CC
former/JJ
aide/NN
to/TO
Robert/NNP
Kennedy/NNP
./.
Thus/RB
have/VBP
Charles/NNP
Colson/NNP
and/CC
Jeb/NNP
Magruder/NNP
launched/VBN
successful/JJ
post-Watergate/JJ
careers/NNS
at/IN
the/DT
pulpit/NN
./.
But/CC
it/PRP
does/VBZ
n't/RB
always/RB
work/VB
so/RB
smoothly/RB
./.
After/IN
allegations/NNS
surfaced/VBD
in/IN
a/DT
1985/CD
divorce/NN
contest/NN
that/IN
he/PRP
had/VBD
beaten/VBN
his/PRP$
wife/NN
,/,
SEC/NNP
enforcement/NN
chief/NN
John/NNP
Fedders/NNP
retreated/VBD
to/TO
a/DT
Trappist/JJ
monastery/NN
in/IN
rural/JJ
Virginia/NNP
./.
He/PRP
is/VBZ
now/RB
in/IN
solo/NN
law/NN
practice/NN
in/IN
Washington/NNP
,/,
but/CC
his/PRP$
fees/NNS
have/VBP
been/VBN
meager/JJ
and/CC
he/PRP
failed/VBD
in/IN
efforts/NNS
to/TO
win/VB
a/DT
chunk/NN
of/IN
his/PRP$
ex-wife/NN
's/POS
royalties/NNS
on/IN
her/PRP$
tell-all/JJ
book/NN
./.
From/IN
time/NN
to/TO
time/NN
he/PRP
returns/VBZ
to/TO
the/DT
monastery/NN
for/IN
prayer/NN
,/,
meditation/NN
and/CC
pro/FW
bono/FW
legal/JJ
work/NN
./.
Mr./NNP
Fedders/NNP
is/VBZ
philosophical/JJ
about/IN
his/PRP$
travails/NNS
./.
``/``
This/DT
whole/JJ
experience/NN
has/VBZ
been/VBN
an/DT
opportunity/NN
for/IN
internal/JJ
growth/NN
,/,
''/''
he/PRP
says/VBZ
./.
He/PRP
sees/VBZ
a/DT
psychoanalyst/NN
five/CD
mornings/NNS
a/DT
week/NN
./.
``/``
I/PRP
've/VBP
surrendered/VBN
to/TO
the/DT
circumstances/NNS
,/,
''/''
Mr./NNP
Fedders/NNP
says/VBZ
./.
``/``
The/DT
word/NN
surrender/NN
has/VBZ
a/DT
precise/JJ
psychoanalytic/JJ
meaning/NN
./.
My/PRP$
universe/NN
has/VBZ
changed/VBN
./.
I/PRP
'm/VBP
enjoying/VBG
my/PRP$
life/NN
and/CC
who/WP
I/PRP
am/VBP
today/NN
./.
The/DT
aspect/NN
of/IN
being/VBG
a/DT
mega-lawyer/NN
is/VBZ
n't/RB
as/RB
important/JJ
./.
''/''
Do/VB
n't/RB
Linger/VB
``/``
The/DT
best/JJS
thing/NN
you/PRP
can/MD
do/VB
is/VBZ
get/VB
off/IN
the/DT
screen/NN
,/,
''/''
says/VBZ
Mr./NNP
Buchwald/NNP
./.
Nobody/NN
proved/VBD
that/IN
more/RBR
masterfully/RB
than/IN
Mr./NNP
Coelho/NNP
,/,
the/DT
former/JJ
Democratic/JJ
majority/NN
whip/NN
./.
Declaring/VBG
that/IN
there/EX
was/VBD
life/NN
after/IN
Congress/NNP
,/,
he/PRP
resigned/VBD
almost/RB
immediately/RB
after/IN
media/NNS
reports/NNS
questioned/VBD
the/DT
propriety/NN
of/IN
a/DT
1986/CD
junk-bond/NN
investment/NN
,/,
before/IN
any/DT
official/JJ
investigations/NNS
took/VBD
hold/NN
./.
Among/IN
the/DT
glitterati/NNS
who/WP
turned/VBD
out/IN
in/IN
bipartisan/JJ
black-tie/JJ
force/NN
to/TO
benefit/VB
the/DT
Coelho/NNP
Epilepsy/NNP
Fund/NNP
last/JJ
month/NN
were/VBD
Sen./NNP
Robert/NNP
Dole/NNP
,/,
Rep./NNP
Newt/NNP
Gingrich/NNP
,/,
and/CC
other/JJ
kingpins/NNS
of/IN
Congress/NNP
./.
Dan/NNP
Rather/NNP
served/VBD
as/IN
emcee/NN
./.
From/IN
his/PRP$
new/JJ
,/,
million-dollar-a-year/JJ
perch/NN
on/IN
Wall/NNP
Street/NNP
as/IN
a/DT
managing/VBG
director/NN
of/IN
Wertheim/NNP
Schroder/NNP
&/CC
Co./NNP
,/,
Mr./NNP
Coelho/NNP
reports/VBZ
that/IN
many/JJ
of/IN
his/PRP$
former/JJ
colleagues/NNS
have/VBP
contacted/VBN
him/PRP
to/TO
find/VB
out/IN
how/WRB
they/PRP
,/,
too/RB
,/,
can/MD
pursue/VB
investment/NN
banking/NN
careers/NNS
./.
It/PRP
Helps/VBZ
to/TO
Be/VB
Male/NN
Male/JJ
scandal/NN
victims/NNS
invariably/RB
fare/VBP
better/RBR
./.
Anne/NNP
Burford/NNP
,/,
the/DT
former/JJ
EPA/NNP
chief/NN
who/WP
resigned/VBD
under/IN
fire/NN
in/IN
1983/CD
during/IN
a/DT
flap/NN
with/IN
Congress/NNP
,/,
was/VBD
kayoed/VBN
in/IN
the/DT
confrontation/NN
,/,
even/RB
though/IN
she/PRP
was/VBD
never/RB
charged/VBN
with/IN
official/JJ
wrondgoing/NN
./.
She/PRP
worked/VBD
part-time/JJ
as/IN
a/DT
consultant/NN
and/CC
wrote/VBD
a/DT
book/NN
,/,
but/CC
never/RB
restarted/VBD
her/PRP
high-powered/JJ
legal/JJ
career/NN
./.
It/PRP
did/VBD
n't/RB
help/VB
when/WRB
,/,
in/IN
1986/CD
,/,
she/PRP
was/VBD
charged/VBN
(/(
and/CC
then/RB
cleared/VBN
)/)
on/IN
allegations/NNS
of/IN
public/JJ
drunkenness/NN
./.
``/``
I/PRP
cut/VBD
my/PRP$
losses/NNS
and/CC
ran/VBD
,/,
''/''
she/PRP
says/VBZ
,/,
from/IN
her/PRP$
new/JJ
home/NN
in/IN
Colorado/NNP
,/,
where/WRB
she/PRP
is/VBZ
busy/JJ
remodeling/VBG
./.
Mrs./NNP
Burford/NNP
remains/VBZ
bitter/JJ
over/IN
the/DT
overwhelming/JJ
legal/JJ
expenses/NNS
involved/VBN
in/IN
clearing/VBG
her/PRP$
name/NN
./.
``/``
My/PRP$
husband/NN
was/VBD
instantly/RB
impoverished/VBN
by/IN
the/DT
very/JJ
act/NN
of/IN
marrying/VBG
me/PRP
,/,
''/''
she/PRP
says/VBZ
./.
Another/DT
former/JJ
EPA/NNP
official/NN
,/,
Rita/NNP
Lavelle/NNP
,/,
is/VBZ
still/RB
struggling/VBG
after/IN
her/PRP$
conviction/NN
in/IN
1983/CD
on/IN
perjury/NN
charges/NNS
./.
``/``
There/EX
's/VBZ
nothing/NN
she/PRP
could/MD
do/VB
to/TO
bring/VB
herself/PRP
back/RB
to/TO
where/WRB
she/PRP
was/VBD
,/,
''/''
says/VBZ
her/PRP$
lawyer/NN
,/,
James/NNP
Bierbower/NNP
./.
``/``
You/PRP
could/MD
say/VB
she/PRP
survived/VBD
,/,
but/CC
it/PRP
was/VBD
n't/RB
easy/JJ
on/IN
her/PRP
./.
''/''
No/DT
book/NN
contracts/NNS
have/VBP
been/VBN
dangled/VBN
before/IN
Deborah/NNP
Gore/NNP
Dean/NNP
,/,
the/DT
reigning/VBG
queen/NN
of/IN
the/DT
HUD/NNP
scandal/NN
./.
Donna/NNP
Rice/NNP
of/IN
Gary/NNP
Hart/NNP
fame/NN
failed/VBD
to/TO
obtain/VB
a/DT
book/NN
contract/NN
and/CC
lost/VBD
her/PRP
modeling/NN
contract/NN
for/IN
``/``
No/NNP
Excuses/NNPS
''/''
jeans/NNS
./.
Fawn/NNP
Hall/NNP
,/,
Oliver/NNP
North/NNP
's/POS
former/JJ
secretary/NN
,/,
has/VBZ
yet/RB
to/TO
launch/VB
a/DT
hoped-for/JJ
television/NN
news/NN
career/NN
,/,
according/VBG
to/TO
her/PRP$
lawyer/NN
./.
Rita/NNP
Jenrette/NNP
,/,
the/DT
former/JJ
wife/NN
of/IN
Abscam-indicted/JJ
Rep./NNP
John/NNP
Jenrette/NNP
,/,
has/VBZ
yet/RB
to/TO
hit/VB
it/PRP
big/JJ
in/IN
Hollywood/NNP
,/,
although/IN
with/IN
roles/NNS
in/IN
such/JJ
movies/NNS
as/IN
``/``
Zombie/NNP
Island/NNP
Massacre/NNP
''/''
and/CC
``/``
Aunt/NNP
Ida/NNP
's/POS
Bikini/NNP
Shop/NNP
,/,
''/''
she/PRP
is/VBZ
doing/VBG
a/DT
lot/NN
better/RBR
than/IN
her/PRP$
former/JJ
husband/NN
./.
He/PRP
was/VBD
back/RB
in/IN
jail/NN
over/IN
the/DT
summer/NN
on/IN
shoplifting/NN
charges/NNS
./.
Be/VB
the/DT
Star/NN
Central/JJ
figures/NNS
--/:
such/JJ
as/IN
Richard/NNP
Nixon/NNP
--/:
usually/RB
fare/VBP
better/RBR
than/IN
those/DT
with/IN
supporting/VBG
roles/NNS
./.
Richard/NNP
Secord/NNP
,/,
the/DT
retired/VBN
Air/NNP
Force/NNP
general/NN
felled/VBN
in/IN
the/DT
Iran-Contra/NNP
scandal/NN
,/,
is/VBZ
all/DT
but/CC
ruined/VBN
--/:
forced/VBN
to/TO
sell/VB
his/PRP$
Virginia/NNP
home/NN
and/CC
pull/VB
his/PRP$
kids/NNS
out/IN
of/IN
college/NN
,/,
according/VBG
to/TO
a/DT
recent/JJ
fund-raising/JJ
appeal/NN
sent/VBN
out/IN
on/IN
his/PRP$
behalf/NN
./.
Yet/RB
his/PRP$
co-defendant/NN
in/IN
the/DT
case/NN
--/:
also/RB
a/DT
former/JJ
military/JJ
officer/NN
by/IN
the/DT
name/NN
of/IN
Oliver/NNP
North/NNP
--/:
has/VBZ
been/VBN
busily/RB
and/CC
profitably/RB
burnishing/VBG
his/PRP$
involvement/NN
in/IN
the/DT
affair/NN
./.
What/WP
accounts/VBZ
for/IN
the/DT
difference/NN
?/.
During/IN
the/DT
televised/VBN
Iran-Contra/NNP
hearings/NNS
,/,
Mr./NNP
North/NNP
came/VBD
off/IN
as/IN
a/DT
patriot/NN
from/IN
central/JJ
casting/NN
./.
Mr./NNP
Secord/NNP
's/POS
performance/NN
was/VBD
decidedly/RB
less/RBR
inspiring/JJ
./.
Mr./NNP
North/NNP
remains/VBZ
in/IN
heavy/JJ
demand/NN
as/IN
a/DT
speaker/NN
,/,
for/IN
fees/NNS
reported/VBN
in/IN
the/DT
$/$
20,000/CD
range/NN
./.
Even/RB
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the/DT
wake/NN
of/IN
Hurricane/NNP
Hugo/NNP
750/CD
people/NNS
turned/VBD
out/IN
in/IN
a/DT
remote/JJ
Virginia/NNP
town/NN
in/IN
September/NNP
for/IN
a/DT
``/``
family/NN
tribute/NN
''/''
to/TO
Mr./NNP
North/NNP
given/VBN
by/IN
two/CD
dozen/NN
conservative/JJ
members/NNS
of/IN
Congress/NNP
./.
If/IN
Sex/NN
Is/VBZ
Involved/VBN
,/,
All/DT
Bets/NNS
Are/VBP
Off/IN
Sex/NN
scandals/NNS
make/VBP
people/NNS
look/VB
careless/JJ
and/CC
silly/JJ
,/,
and/CC
one/CD
of/IN
the/DT
worst/JJS
sins/NNS
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Washington/NNP
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be/VB
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./.
``/``
You/PRP
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be/VB
wicked/JJ
,/,
but/CC
not/RB
foolish/JJ
,/,
''/''
says/VBZ
Mr./NNP
Mankiewicz/NNP
./.
Nevertheless/RB
,/,
Rep./NNP
Gerry/NNP
Studds/NNP
of/IN
Massachusetts/NNP
was/VBD
handily/RB
re-elected/JJ
because/IN
of/IN
the/DT
candor/NN
with/IN
which/WDT
he/PRP
handled/VBD
revelations/NNS
that/IN
he/PRP
had/VBD
sex/NN
with/IN
a/DT
male/JJ
congressional/JJ
page/NN
in/IN
1983/CD
./.
Former/NNP
Rep./NNP
Robert/NNP
Bauman/NNP
,/,
a/DT
Maryland/NNP
Republican/NNP
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1980/CD
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sex/NN
from/IN
a/DT
16-year-old/JJ
boy/NN
,/,
has/VBZ
never/RB
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his/PRP$
professional/JJ
footing/NN
as/IN
a/DT
lawyer/NN
./.
Mr./NNP
Bauman/NNP
,/,
a/DT
conservative/NN
,/,
says/VBZ
he/PRP
was/VBD
deserted/VBN
by/IN
the/DT
right/JJ
wing/NN
./.
``/``
Conservatives/NNS
shoot/VBP
their/PRP$
own/JJ
,/,
''/''
he/PRP
says/VBZ
./.
If/IN
the/DT
political/JJ
establishment/NN
is/VBZ
reluctant/JJ
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forgive/VB
sexual/JJ
misadventures/NNS
,/,
the/DT
private/JJ
sector/NN
sometimes/RB
will/MD
./.
John/NNP
Tower/NNP
was/VBD
accused/VBN
of/IN
womanizing/VBG
and/CC
boozing/VBG
during/IN
his/PRP$
unsuccessful/JJ
bid/NN
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win/VB
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as/IN
secretary/NN
of/IN
defense/NN
earlier/RBR
this/DT
year/NN
./.
Now/RB
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writing/VBG
a/DT
book/NN
,/,
serving/VBG
on/IN
an/DT
elite/JJ
foreign/JJ
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advisory/JJ
board/NN
and/CC
consulting/VBG
for/IN
an/DT
array/NN
of/IN
corporate/JJ
clients/NNS
,/,
including/VBG
British/JJ
publishing/NN
mogul/NN
Robert/NNP
Maxwell/NNP
./.
Become/VB
a/DT
Lobbyist/NN
When/WRB
all/DT
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fails/VBZ
,/,
Gucci/NNP
Gulch/NNP
--/:
the/DT
fabled/JJ
halls/NNS
of/IN
the/DT
Capitol/NNP
inhabited/VBN
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their/PRP$
imported/VBN
shoes/NNS
--/:
offers/VBZ
a/DT
welcome/JJ
environment/NN
for/IN
fallen/VBN
officials/NNS
./.
Former/NNP
Rep./NNP
Fernand/NNP
St/NNP
Germain/NNP
,/,
brought/VBD
down/IN
by/IN
the/DT
savings-and-loan/JJ
crisis/NN
,/,
now/RB
represents/VBZ
--/:
you/PRP
guessed/VBD
it/PRP
--/:
savings-and-loans/JJ
associations/NNS
./.
Some/DT
become/VBD
pseudo-lobbyists/NNS
./.
John/NNP
Mack/NNP
promptly/RB
quit/VBD
his/PRP$
job/NN
last/JJ
spring/NN
as/IN
an/DT
aide/NN
to/TO
Speaker/NNP
Wright/NNP
amid/IN
public/JJ
outrage/NN
over/IN
Mr./NNP
Mack/NNP
's/POS
violent/JJ
attack/NN
on/IN
a/DT
young/JJ
woman/NN
when/WRB
he/PRP
was/VBD
19/CD
years/NNS
old/JJ
./.
After/IN
a/DT
few/JJ
weeks/NNS
in/IN
seclusion/NN
,/,
Mr./NNP
Mack/NNP
opened/VBD
a/DT
consulting/VBG
firm/NN
,/,
but/CC
not/RB
to/TO
enable/VB
him/PRP
to/TO
directly/RB
lobby/VB
;/:
that/WDT
would/MD
require/VB
him/PRP
to/TO
disclose/VB
his/PRP$
clients/NNS
by/IN
registering/VBG
as/IN
a/DT
lobbyist/NN
./.
Still/RB
,/,
Mr./NNP
Mack/NNP
says/VBZ
he/PRP
talks/VBZ
to/TO
``/``
30/CD
members/NNS
of/IN
Congress/NNP
a/DT
week/NN
./.
''/''
Misery/NN
Loves/VBZ
Company/NN
Other/JJ
scandal/NN
survivors/NNS
are/VBP
sometimes/RB
the/DT
best/JJS
source/NN
of/IN
solace/NN
./.
Raymond/NNP
Donovan/NNP
,/,
the/DT
New/NNP
Jersey/NNP
construction/NN
executive/NN
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was/VBD
forced/VBN
to/TO
resign/VB
as/IN
labor/NN
secretary/NN
and/CC
indicted/VBN
in/IN
1985/CD
,/,
only/RB
to/TO
be/VB
acquitted/VBN
of/IN
fraud/NN
charges/NNS
,/,
often/RB
calls/VBZ
other/JJ
scandal-tossed/JJ
public/JJ
figures/NNS
to/TO
offer/VB
a/DT
sympathetic/JJ
ear/NN
./.
Each/DT
time/NN
a/DT
new/JJ
scandal/NN
hits/VBZ
,/,
he/PRP
says/VBZ
,/,
``/``
it/PRP
pulls/VBZ
the/DT
scabs/NNS
off/IN
your/PRP$
knees/NNS
./.
''/''
One/CD
of/IN
the/DT
first/JJ
people/NNS
to/TO
come/VB
to/TO
the/DT
Deaver/NNP
home/NN
after/IN
his/PRP$
troubles/NNS
erupted/VBD
was/VBD
former/JJ
Nixon/NNP
aide/NN
John/NNP
Ehrlichman/NNP
,/,
whom/WP
Mr./NNP
Deaver/NNP
scarcely/RB
knew/VBD
./.
``/``
He/PRP
reassured/VBD
me/PRP
that/IN
the/DT
hurricane/NN
would/MD
end/VB
,/,
''/''
Mr./NNP
Deaver/NNP
recalls/VBZ
./.
Mr./NNP
Bauman/NNP
received/VBD
an/DT
encouraging/JJ
letter/NN
from/IN
the/DT
recognized/VBN
master/NN
of/IN
scandal/NN
survival/NN
,/,
Richard/NNP
Nixon/NNP
./.
Says/VBZ
Mr./NNP
Bauman/NNP
:/:
``/``
If/IN
things/NNS
get/VBP
really/RB
tough/JJ
,/,
I/PRP
can/MD
always/RB
auction/VB
it/PRP
off/IN
at/IN
Sotheby/NNP
's/POS
./.
''/''
The/DT
Canadian/JJ
government/NN
,/,
with/IN
a/DT
view/NN
to/TO
becoming/VBG
more/RBR
politically/RB
active/JJ
in/IN
Latin/NNP
America/NNP
,/,
is/VBZ
expected/VBN
to/TO
announce/VB
tomorrow/NN
its/PRP$
application/NN
to/TO
join/VB
the/DT
Organization/NNP
of/IN
American/NNP
States/NNPS
,/,
a/DT
Washington-based/JJ
regional/JJ
agency/NN
./.
The/DT
expected/VBN
Canadian/JJ
move/NN
has/VBZ
been/VBN
welcomed/VBN
by/IN
the/DT
Bush/NNP
administration/NN
even/RB
though/IN
Canada/NNP
has/VBZ
opposed/VBN
such/JJ
U.S./NNP
actions/NNS
as/IN
the/DT
trade/NN
embargo/NN
against/IN
Cuba/NNP
,/,
the/DT
invasion/NN
of/IN
Grenada/NNP
and/CC
the/DT
military/JJ
support/NN
for/IN
Nicaragua/NNP
's/POS
Contra/NNP
guerrillas/NNS
./.
Latin/JJ
American/JJ
countries/NNS
have/VBP
long/RB
urged/VBN
Canada/NNP
to/TO
join/VB
the/DT
OAS/NNP
in/IN
the/DT
hopes/NNS
that/IN
it/PRP
would/MD
be/VB
a/DT
counterweight/NN
to/TO
the/DT
U.S./NNP
,/,
which/WDT
for/IN
many/JJ
years/NNS
tended/VBD
to/TO
dominate/VB
the/DT
32-nation/JJ
organization/NN
./.
Even/RB
though/IN
the/DT
U.S./NNP
also/RB
has/VBZ
supported/VBN
Canadian/JJ
membership/NN
,/,
it/PRP
has/VBZ
n't/RB
been/VBN
a/DT
Washington/NNP
priority/NN
./.
``/``
The/DT
fact/NN
that/IN
we/PRP
might/MD
not/RB
side/VB
with/IN
the/DT
Americans/NNPS
may/MD
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a/DT
reason/NN
why/WRB
Canada/NNP
's/POS
membership/NN
in/IN
the/DT
OAS/NNP
has/VBZ
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been/VBN
,/,
over/IN
the/DT
years/NNS
,/,
an/DT
item/NN
high/JJ
on/IN
the/DT
U.S./NNP
agenda/NN
,/,
''/''
said/VBD
Allan/NNP
Gotlieb/NNP
,/,
former/JJ
Canadian/JJ
ambassador/NN
to/TO
the/DT
U.S/NNP
./.
The/DT
Canadian/JJ
application/NN
is/VBZ
expected/VBN
to/TO
be/VB
announced/VBN
in/IN
San/NNP
Jose/NNP
,/,
Costa/NNP
Rica/NNP
,/,
by/IN
Canadian/NNP
Prime/NNP
Minister/NNP
Brian/NNP
Mulroney/NNP
,/,
who/WP
is/VBZ
attending/VBG
a/DT
centenary/JJ
celebration/NN
of/IN
Costa/NNP
Rican/NNP
democracy/NN
./.
``/``
Canada/NNP
has/VBZ
a/DT
larger/JJR
and/CC
more/RBR
beneficial/JJ
role/NN
to/TO
play/VB
in/IN
the/DT
hemisphere/NN
,/,
''/''
Mr./NNP
Mulroney/NNP
said/VBD
recently/RB
./.
Some/DT
Canadian/JJ
political/JJ
commentators/NNS
have/VBP
opposed/VBN
Canada/NNP
's/POS
joining/VBG
what/WP
they/PRP
see/VBP
as/IN
a/DT
U.S.-dominated/JJ
organization/NN
./.
``/``
Canada/NNP
could/MD
do/VB
plenty/RB
of/IN
things/NNS
to/TO
get/VB
serious/JJ
about/IN
Latin/NNP
America/NNP
without/IN
running/VBG
the/DT
risk/NN
of/IN
getting/VBG
caught/VBN
in/IN
the/DT
cross/NN
fire/NN
''/''
between/IN
the/DT
U.S./NNP
and/CC
Latin/JJ
American/JJ
members/NNS
of/IN
the/DT
OAS/NNP
,/,
said/VBD
Jeffrey/NNP
Simpson/NNP
,/,
a/DT
columnist/NN
in/IN
Toronto/NNP
's/POS
Globe/NNP
&/CC
Mail/NNP
newspaper/NN
./.
Canada/NNP
,/,
at/IN
times/NNS
,/,
could/MD
be/VB
an/DT
awkward/JJ
OAS/NNP
partner/NN
for/IN
the/DT
U.S./NNP
if/IN
its/PRP$
United/NNP
Nations/NNPS
voting/NN
record/NN
is/VBZ
an/DT
indication/NN
./.
In/IN
U.N./NNP
General/NNP
Assembly/NNP
votes/VBZ
last/JJ
year/NN
,/,
Canada/NNP
voted/VBD
the/DT
same/JJ
as/IN
the/DT
U.S./NNP
only/RB
63/CD
%/NN
of/IN
the/DT
time/NN
./.
France/NNP
voted/VBD
the/DT
same/JJ
as/IN
the/DT
U.S./NNP
76/CD
%/NN
of/IN
the/DT
time/NN
,/,
West/NNP
Germany/NNP
79/CD
%/NN
and/CC
Britain/NNP
83/CD
%/NN
./.
Larry/NNP
Birns/NNP
,/,
director/NN
of/IN
the/DT
Washington-based/JJ
Council/NNP
on/IN
Hemispheric/NNP
Affairs/NNPS
,/,
a/DT
liberal/JJ
research/NN
group/NN
,/,
said/VBD
that/IN
Latin/JJ
American/JJ
countries/NNS
would/MD
be/VB
``/``
profoundly/RB
disappointed/VBN
''/''
if/IN
Canada/NNP
were/VBD
to/TO
follow/VB
the/DT
U.S./NNP
lead/NN
in/IN
the/DT
OAS/NNP
./.
``/``
Latin/NNPS
Americans/NNPS
see/VBP
Canada/NNP
as/IN
a/DT
non-interventionist/JJ
power/NN
that/WDT
respects/VBZ
their/PRP$
sovereignty/NN
,/,
''/''
he/PRP
said/VBD
./.
The/DT
OAS/NNP
,/,
which/WDT
tries/VBZ
to/TO
promote/VB
peace/NN
and/CC
economic/JJ
development/NN
within/IN
the/DT
Americas/NNPS
,/,
is/VBZ
attempting/VBG
to/TO
find/VB
a/DT
settlement/NN
of/IN
the/DT
current/JJ
Panama/NNP
political/JJ
crisis/NN
./.
Cuba/NNP
has/VBZ
been/VBN
suspended/VBN
from/IN
OAS/NNP
membership/NN
,/,
but/CC
the/DT
organization/NN
's/POS
members/NNS
are/VBP
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Cuba/NNP
's/POS
reinstatement/NN
./.
Robert/NNP
H./NNP
Knight/NNP
's/POS
Oct./NNP
5/CD
editorial-page/NN
article/NN
bemoaning/VBG
violence/NN
in/IN
comedy/NN
movies/NNS
``/``
Hollywood/NNP
,/,
You/PRP
Slay/VBP
Me/PRP
''/''
)/)
is/VBZ
interesting/JJ
,/,
but/CC
somewhat/RB
off-base/JJ
./.
As/IN
a/DT
fan/NN
of/IN
older/JJR
movies/NNS
from/IN
the/DT
1920s/CD
on/IN
,/,
I/PRP
do/VBP
not/RB
find/VB
modern/JJ
comedies/NNS
contain/VBP
violence/NN
,/,
sex/NN
and/CC
foul/JJ
language/NN
to/TO
any/DT
greater/JJR
degree/NN
than/IN
other/JJ
recent/JJ
movies/NNS
./.
Older/JJR
movies/NNS
have/VBP
plenty/NN
of/IN
violence/NN
,/,
though/IN
it/PRP
is/VBZ
portrayed/VBN
in/IN
keeping/VBG
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the/DT
more/RBR
restrictive/JJ
social/JJ
conventions/NNS
of/IN
the/DT
time/NN
./.
For/IN
example/NN
,/,
one/CD
of/IN
my/PRP$
favorite/JJ
movies/NNS
is/VBZ
the/DT
1949/CD
British/JJ
comedy/NN
``/``
Kind/NNP
Hearts/NNPS
and/CC
Coronets/NNPS
,/,
''/''
in/IN
which/WDT
the/DT
entire/JJ
comedy/NN
is/VBZ
based/VBN
on/IN
actor/NN
Dennis/NNP
Price/NNP
's/POS
murdering/VBG
eight/CD
titled/VBN
relatives/NNS
all/DT
played/VBN
by/IN
Alec/NNP
Guinness/NNP
they/PRP
snubbed/VBD
his/PRP$
mother/NN
and/CC
stand/VBP
in/IN
the/DT
way/NN
of/IN
his/PRP$
acquiring/VBG
the/DT
family/NN
title/NN
./.
Similarly/RB
,/,
one/CD
of/IN
the/DT
most/RBS
popular/JJ
comedy/NN
genres/NNS
of/IN
the/DT
1930s/CD
and/CC
'40s/CD
was/VBD
the/DT
``/``
murder/NN
mystery\/comedy/NN
./.
''/''
The/DT
``/``
Thin/NNP
Man/NNP
''/''
series/NN
of/IN
movies/NNS
,/,
as/RB
well/RB
as/IN
many/JJ
others/NNS
,/,
based/VBN
their/PRP$
entire/JJ
comedic/JJ
appeal/NN
on/IN
the/DT
star/NN
detectives/NNS
'/POS
witty/JJ
quips/NNS
and/CC
puns/NNS
as/IN
other/JJ
characters/NNS
in/IN
the/DT
movies/NNS
were/VBD
murdered/VBN
./.
Further/RB
,/,
I/PRP
think/VBP
Mr./NNP
Knight/NNP
made/VBD
a/DT
poor/JJ
choice/NN
in/IN
picking/VBG
``/``
A/DT
Fish/NN
Called/VBN
Wanda/NNP
''/''
as/IN
an/DT
example/NN
of/IN
the/DT
deplorable/JJ
state/NN
of/IN
modern/JJ
comedy/NN
movies/NNS
./.
The/DT
specific/JJ
scene/NN
he/PRP
mentions/VBZ
in/IN
which/WDT
pet/JJ
dogs/NNS
are/VBP
crushed/VBN
is/VBZ
somewhat/RB
reminiscent/JJ
of/IN
the/DT
continual/JJ
plights/NNS
that/WDT
befall/VBP
the/DT
coyote/NN
in/IN
the/DT
old/JJ
Warner/NNP
Bros/NNP
./.
``/``
Road/NNP
Runner/NNP
''/''
cartoons/NNS
./.
There/EX
is/VBZ
no/DT
slow-motion/JJ
close-up/NN
,/,
blood-and-guts/JJ
portrayal/NN
of/IN
the/DT
animal/NN
's/POS
demise/NN
./.
Keep/VB
in/IN
mind/NN
that/IN
this/DT
is/VBZ
the/DT
same/JJ
movie/NN
in/IN
which/WDT
a/DT
character/NN
is/VBZ
flattened/VBN
by/IN
a/DT
steamroller/NN
only/RB
to/TO
pop/VB
right/JJ
back/NN
up/IN
and/CC
peer/VB
in/IN
the/DT
window/NN
of/IN
a/DT
Boeing/NNP
747/CD
--/:
from/IN
the/DT
outside/NN
--/:
as/IN
it/PRP
takes/VBZ
off/IN
./.
I/PRP
will/MD
be/VB
the/DT
first/JJ
to/TO
agree/VB
that/IN
there/EX
is/VBZ
much/JJ
to/TO
be/VB
found/VBN
wrong/RB
with/IN
modern/JJ
movie/NN
making/NN
./.
Many/JJ
modern/JJ
scriptwriters/NNS
seem/VBP
to/TO
be/VB
incapable/JJ
of/IN
writing/VBG
drama/NN
,/,
or/CC
anything/NN
else/RB
,/,
without/IN
foul-mouthed/JJ
cursing/NN
./.
Sex/NN
and/CC
violence/NN
are/VBP
routinely/RB
included/VBN
even/RB
when/WRB
they/PRP
are/VBP
irrelevant/JJ
to/TO
the/DT
script/NN
,/,
and/CC
high-tech/JJ
special/JJ
effects/NNS
are/VBP
continually/RB
substituted/VBN
for/IN
good/JJ
plot/NN
and/CC
character/NN
development/NN
./.
In/IN
short/JJ
,/,
we/PRP
have/VBP
a/DT
movie/NN
and/CC
television/NN
industry/NN
that/WDT
is/VBZ
either/DT
incapable/JJ
or/CC
petrified/JJ
of/IN
making/VBG
a/DT
movie/NN
unless/IN
it/PRP
carries/VBZ
a/DT
PG-13/NN
or/CC
R/NN
rating/NN
./.
Hence/RB
copious/JJ
amounts/NNS
of/IN
gratuitous/JJ
sex/NN
,/,
violence/NN
and/CC
gutter/NN
language/NN
are/VBP
included/VBN
as/IN
a/DT
crutch/NN
./.
However/RB
,/,
these/DT
faults/NNS
are/VBP
not/RB
the/DT
exclusive/JJ
property/NN
of/IN
modern/JJ
comedies/NNS
,/,
and/CC
I/PRP
believe/VBP
Mr./NNP
Knight/NNP
errs/VBZ
when/WRB
he/PRP
attempts/VBZ
to/TO
link/VB
this/DT
modern/JJ
phenomenon/NN
too/RB
closely/RB
to/TO
a/DT
single/JJ
category/NN
of/IN
movie/NN
making/NN
./.
Michael/NNP
Smith/NNP
St./NNP
Louis/NNP
Rochester/NNP
Telephone/NNP
Corp./NNP
said/VBD
it/PRP
agreed/VBD
to/TO
buy/VB
Viroqua/NNP
Telephone/NNP
Co./NNP
of/IN
Viroqua/NNP
,/,
Wis/NNP
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Rochester/NNP
will/MD
exchange/VB
shares/NNS
of/IN
its/PRP$
common/JJ
stock/NN
for/IN
all/DT
shares/NNS
outstanding/JJ
of/IN
Viroqua/NNP
Telephone/NNP
,/,
a/DT
family-owned/JJ
company/NN
./.
Viroqua/NNP
serves/VBZ
about/IN
3,000/CD
access/NN
lines/NNS
in/IN
western/JJ
Wisconsin/NNP
./.
The/DT
average/JJ
unemployment/NN
rate/NN
in/IN
the/DT
15/CD
biggest/JJS
industrialized/VBN
democracies/NNS
was/VBD
steady/JJ
in/IN
August/NNP
at/IN
the/DT
6.1/CD
%/NN
rate/NN
of/IN
the/DT
two/CD
previous/JJ
months/NNS
,/,
the/DT
Organization/NNP
for/IN
Economic/NNP
Cooperation/NNP
and/CC
Development/NNP
OECD/NNP
The/DT
August/NNP
rate/NN
was/VBD
0.6/CD
percentage/NN
point/NN
lower/JJR
than/IN
in/IN
the/DT
like/JJ
month/NN
a/DT
year/NN
earlier/RBR
,/,
reflecting/VBG
the/DT
pickup/NN
of/IN
activity/NN
in/IN
the/DT
15/CD
countries/NNS
./.
The/DT
OECD/NNP
said/VBD
that/IN
most/JJS
of/IN
the/DT
improvement/NN
occurred/VBD
in/IN
the/DT
second/JJ
half/NN
of/IN
last/JJ
year/NN
;/:
since/IN
February/NNP
of/IN
this/DT
year/NN
,/,
unemployment/NN
has/VBZ
been/VBN
steady/JJ
at/IN
around/IN
6.2/CD
%/NN
of/IN
the/DT
labor/NN
force/NN
./.
ALAMCO/NNP
Inc./NNP
said/VBD
its/PRP$
board/NN
has/VBZ
approved/VBN
a/DT
1-for-10/JJ
reverse/NN
stock/NN
split/NN
./.
The/DT
Clarksburg/NNP
,/,
W.Va./NNP
,/,
producer/NN
of/IN
gas/NN
and/CC
oil/NN
,/,
said/VBD
it/PRP
wants/VBZ
shareholders/NNS
to/TO
approve/VB
the/DT
split/NN
because/IN
it/PRP
would/MD
``/``
enhance/VB
the/DT
marketability/NN
''/''
and/CC
trading/NN
of/IN
the/DT
stock/NN
./.
If/IN
approved/VBN
at/IN
a/DT
shareholder/NN
meeting/NN
in/IN
December/NNP
,/,
the/DT
number/NN
of/IN
shares/NNS
outstanding/JJ
would/MD
decrease/VB
to/TO
five/CD
million/CD
from/IN
50/CD
million/CD
,/,
and/CC
par/IN
value/NN
would/MD
rise/VB
to/TO
10/CD
cents/NNS
from/IN
a/DT
penny/NN
./.
Duriron/NNP
Co./NNP
said/VBD
it/PRP
has/VBZ
agreed/VBN
to/TO
buy/VB
Automax/NNP
Inc./NNP
,/,
a/DT
Cincinnati/NNP
maker/NN
of/IN
control/NN
accessories/NNS
for/IN
industrial/JJ
valves/NNS
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
,/,
but/CC
Duriron/NNP
said/VBD
the/DT
deal/NN
will/MD
be/VB
completed/VBN
through/IN
an/DT
exchange/NN
of/IN
stock/NN
./.
Closely/RB
held/VBN
Automax/NNP
has/VBZ
annual/JJ
sales/NNS
of/IN
about/IN
$/$
10/CD
million/CD
./.
Duriron/NNP
,/,
a/DT
maker/NN
of/IN
pumps/NNS
,/,
valves/NNS
and/CC
other/JJ
controls/NNS
,/,
said/VBD
the/DT
acquisition/NN
wo/MD
n't/RB
impact/VB
its/PRP$
1989/CD
profit/NN
./.
Canadian/JJ
manufacturers/NNS
recorded/VBD
a/DT
0.8/CD
%/NN
decline/NN
in/IN
August/NNP
in/IN
their/PRP$
backlog/NN
of/IN
unfilled/JJ
orders/NNS
,/,
Statistics/NNPS
Canada/NNP
,/,
a/DT
federal/JJ
agency/NN
,/,
said/VBD
./.
The/DT
August/NNP
drop/NN
was/VBD
the/DT
fourth/JJ
decline/NN
in/IN
five/CD
months/NNS
./.
Most/JJS
of/IN
the/DT
August/NNP
decrease/NN
was/VBD
attributed/VBN
to/TO
lower/JJR
order/NN
backlogs/NNS
in/IN
the/DT
primary/JJ
metal/NN
and/CC
electric/NN
and/CC
electronics-product/NN
industries/NNS
./.
Manufacturers/NNS
'/POS
shipments/NNS
rose/VBD
0.3/CD
%/NN
in/IN
August/NNP
following/VBG
two/CD
months/NNS
of/IN
declines/NNS
./.
Inventories/NNS
fell/VBD
0.3/CD
%/NN
in/IN
August/NNP
./.
Burmah/NNP
Oil/NNP
PLC/NNP
,/,
a/DT
British/JJ
independent/JJ
oil/NN
company/NN
,/,
said/VBD
its/PRP$
West/JJ
German/JJ
subsidiary/NN
Castrol/NNP
has/VBZ
a/DT
49/CD
%/NN
share/NN
in/IN
Explonaft/NNP
G.m.b.H./NNP
,/,
a/DT
new/JJ
Polish/JJ
lubricants/NNS
company/NN
./.
The/DT
remaining/VBG
51/CD
%/NN
of/IN
the/DT
joint/JJ
venture/NN
will/MD
be/VB
controlled/VBN
by/IN
Polish/JJ
lubricants/NNS
manufacturers/NNS
,/,
refiners/NNS
and/CC
technical/JJ
institutes/NN
./.
Explonaft/NNP
will/MD
develop/VB
application/NN
guidelines/NNS
for/IN
lubricants/NNS
,/,
sell/VB
high-quality/JJ
mineral/NN
oils/NNS
,/,
and/CC
offer/VB
services/NNS
in/IN
industrial/JJ
cleaning/NN
and/CC
related/VBN
fields/NNS
./.
Burmah/NNP
,/,
which/WDT
has/VBZ
a/DT
strong/JJ
market/NN
position/NN
supplying/VBG
marine/NN
lubricants/NNS
and/CC
metal-working/JJ
fluids/NNS
in/IN
Poland/NNP
,/,
described/VBD
the/DT
joint/JJ
venture/NN
as/IN
``/``
fairly/RB
small/JJ
./.
''/''
It/PRP
did/VBD
n't/RB
provide/VB
details/NNS
of/IN
setup/NN
costs/NNS
./.
Du/NNP
Pont/NNP
Co./NNP
reported/VBD
that/IN
third-quarter/NN
profit/NN
grew/VBD
a/DT
robust/JJ
19/CD
%/NN
from/IN
a/DT
year/NN
ago/IN
on/IN
the/DT
strength/NN
of/IN
the/DT
company/NN
's/POS
operations/NNS
in/IN
various/JJ
chemicals/NNS
and/CC
fibers/NNS
,/,
and/CC
in/IN
petroleum/NN
./.
Du/NNP
Pont/NNP
also/RB
raised/VBD
its/PRP$
quarterly/JJ
dividend/NN
to/TO
$/$
1.20/CD
a/DT
share/NN
from/IN
$/$
1.05/CD
,/,
a/DT
change/NN
that/WDT
will/MD
increase/VB
the/DT
annualized/JJ
payout/NN
to/TO
shareholders/NNS
by/IN
some/DT
$/$
140/CD
million/CD
./.
Du/NNP
Pont/NNP
,/,
unlike/IN
companies/NNS
hurt/VBN
badly/RB
by/IN
sharp/JJ
price/NN
declines/NNS
for/IN
basic/JJ
chemicals/NNS
and/CC
plastics/NNS
,/,
is/VBZ
benefiting/VBG
from/IN
its/PRP$
broad/JJ
range/NN
of/IN
businesses/NNS
./.
The/DT
profit/NN
gain/NN
was/VBD
made/VBN
despite/IN
a/DT
weakening/NN
in/IN
the/DT
housing/NN
market/NN
,/,
for/IN
which/WDT
the/DT
company/NN
is/VBZ
a/DT
supplier/NN
,/,
and/CC
a/DT
strengthening/NN
in/IN
the/DT
dollar/NN
,/,
which/WDT
lowers/VBZ
the/DT
value/NN
of/IN
overseas/JJ
earnings/NNS
when/WRB
they/PRP
are/VBP
translated/VBN
into/IN
dollars/NNS
./.
The/DT
Wilmington/NNP
,/,
Del./NNP
,/,
company/NN
reported/VBD
net/NN
of/IN
$/$
547/CD
million/CD
,/,
or/CC
$/$
2.36/CD
a/DT
share/NN
,/,
which/WDT
was/VBD
in/IN
line/NN
with/IN
Wall/NNP
Street/NNP
estimates/NNS
./.
In/IN
the/DT
year-earlier/JJ
period/NN
,/,
the/DT
company/NN
earned/VBD
$/$
461/CD
million/CD
,/,
or/CC
$/$
1.91/CD
a/DT
share/NN
./.
Sales/NNS
in/IN
the/DT
latest/JJS
quarter/NN
were/VBD
$/$
8.59/CD
billion/CD
,/,
up/RB
9.4/CD
%/NN
from/IN
$/$
7.85/CD
billion/CD
./.
The/DT
dividend/NN
increase/NN
was/VBD
Du/NNP
Pont/NNP
's/POS
second/JJ
this/DT
year/NN
,/,
an/DT
affirmation/NN
of/IN
statements/NNS
by/IN
top/JJ
executives/NNS
that/IN
they/PRP
intend/VBP
to/TO
increase/VB
rewards/NNS
to/TO
shareholders/NNS
./.
``/``
We/PRP
have/VBP
n't/RB
benefited/VBN
the/DT
shareholder/NN
as/RB
much/RB
as/IN
we/PRP
need/VBP
to/TO
,/,
''/''
said/VBD
Edgar/NNP
Woolard/NNP
Jr./NNP
,/,
Du/NNP
Pont/NNP
's/POS
chairman/NN
and/CC
chief/NN
executive/NN
officer/NN
,/,
in/IN
an/DT
interview/NN
several/JJ
months/NNS
before/IN
he/PRP
entered/VBD
his/PRP$
current/JJ
position/NN
in/IN
April/NNP
./.
The/DT
largest/JJS
beneficiary/NN
will/MD
be/VB
Seagram/NNP
Co./NNP
,/,
which/WDT
owns/VBZ
about/IN
23/CD
%/NN
of/IN
Du/NNP
Pont/NNP
./.
A/DT
spokesman/NN
for/IN
Seagram/NNP
,/,
the/DT
Montreal/NNP
wine/NN
and/CC
spirits/NNS
concern/NN
controlled/VBN
by/IN
the/DT
Bronfman/NNP
family/NN
,/,
said/VBD
the/DT
company/NN
will/MD
post/VB
additional/JJ
pretax/NN
profit/NN
of/IN
about/IN
$/$
33/CD
million/CD
a/DT
year/NN
because/IN
of/IN
the/DT
additional/JJ
Du/NNP
Pont/NNP
dividends/NNS
./.
Du/NNP
Pont/NNP
also/RB
announced/VBD
plans/NNS
for/IN
a/DT
3-for-1/JJ
stock/NN
split/NN
,/,
although/IN
the/DT
initial/JJ
higher/JJR
dividend/NN
will/MD
be/VB
paid/VBN
on/IN
pre-split/JJ
shares/NNS
./.
Du/NNP
Pont/NNP
's/POS
stock/NN
rose/VBD
$/$
2.50/CD
a/DT
share/NN
to/TO
close/VB
at/IN
$/$
117.375/CD
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
./.
Seagram/NNP
closed/VBD
at/IN
$/$
84.75/CD
,/,
up/RB
12.5/CD
cents/NNS
a/DT
share/NN
in/IN
Big/NNP
Board/NNP
trading/NN
./.
Leading/VBG
the/DT
gains/NNS
for/IN
Du/NNP
Pont/NNP
in/IN
the/DT
latest/JJS
quarter/NN
was/VBD
its/PRP$
industrial/JJ
products/NNS
segment/NN
,/,
where/WRB
profit/NN
soared/VBD
to/TO
$/$
155/CD
million/CD
from/IN
$/$
99/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
The/DT
company/NN
benefited/VBD
from/IN
continued/VBN
strong/JJ
demand/NN
and/CC
higher/JJR
selling/VBG
prices/NNS
for/IN
titanium/NN
dioxide/NN
,/,
a/DT
white/JJ
pigment/NN
used/VBN
in/IN
paints/NNS
,/,
paper/NN
and/CC
plastics/NNS
./.
James/NNP
Fallon/NNP
,/,
a/DT
New/NNP
Providence/NNP
,/,
N.J./NNP
,/,
marketing/NN
consultant/NN
to/TO
the/DT
chemicals/NNS
industry/NN
,/,
says/VBZ
Du/NNP
Pont/NNP
still/RB
holds/VBZ
an/DT
edge/NN
in/IN
making/VBG
the/DT
pigment/NN
because/IN
the/DT
company/NN
was/VBD
``/``
first/RB
in/IN
with/IN
the/DT
technology/NN
''/''
to/TO
lower/VB
costs/NNS
./.
He/PRP
said/VBD
Du/NNP
Pont/NNP
holds/VBZ
about/IN
23/CD
%/NN
of/IN
the/DT
world-wide/JJ
market/NN
,/,
the/DT
largest/JJS
single/JJ
share/NN
,/,
at/IN
a/DT
time/NN
when/WRB
growing/VBG
uses/NNS
for/IN
the/DT
pigment/NN
have/VBP
kept/VBN
it/PRP
in/IN
tight/JJ
supply/NN
,/,
although/IN
others/NNS
are/VBP
now/RB
adding/VBG
low-cost/JJ
production/NN
capacity/NN
./.
Profit/NN
climbed/VBD
to/TO
$/$
98/CD
million/CD
from/IN
$/$
71/CD
million/CD
in/IN
the/DT
petroleum/NN
segment/NN
,/,
as/IN
Du/NNP
Pont/NNP
's/POS
Conoco/NNP
Inc./NNP
oil/NN
company/NN
was/VBD
helped/VBN
by/IN
crude/JJ
oil/NN
prices/NNS
higher/JJR
than/IN
a/DT
year/NN
ago/IN
and/CC
by/IN
higher/JJR
natural/JJ
gas/NN
prices/NNS
and/CC
volume/NN
./.
In/IN
the/DT
diversifed/VBN
businesses/NNS
segment/NN
,/,
which/WDT
includes/VBZ
herbicides/NNS
,/,
profit/NN
grew/VBD
to/TO
$/$
64/CD
million/CD
from/IN
$/$
27/CD
million/CD
./.
A/DT
spokesman/NN
said/VBD
herbicide/NN
use/NN
in/IN
some/DT
areas/NNS
of/IN
the/DT
U.S./NNP
was/VBD
delayed/VBN
earlier/RBR
in/IN
the/DT
year/NN
by/IN
heavy/JJ
rains/NNS
,/,
thus/RB
increasing/VBG
sales/NNS
in/IN
the/DT
third/JJ
quarter/NN
./.
In/IN
the/DT
fibers/NNS
segment/NN
,/,
profit/NN
rose/VBD
to/TO
$/$
180/CD
million/CD
from/IN
$/$
155/CD
million/CD
,/,
a/DT
gain/NN
Du/NNP
Pont/NNP
attributed/VBD
to/TO
higher/JJR
demand/NN
in/IN
the/DT
U.S./NNP
for/IN
most/JJS
textile/NN
products/NNS
./.
Two/CD
segments/NNS
posted/VBD
lower/JJR
earnings/NNS
for/IN
the/DT
quarter/NN
./.
Profit/NN
from/IN
coal/NN
fell/VBD
to/TO
$/$
41/CD
million/CD
from/IN
$/$
58/CD
million/CD
,/,
partly/RB
because/IN
of/IN
a/DT
miners/NNS
'/POS
strike/NN
./.
And/CC
profit/NN
from/IN
polymers/NNS
dropped/VBD
to/TO
$/$
107/CD
million/CD
from/IN
$/$
122/CD
million/CD
amid/IN
what/WP
Du/NNP
Pont/NNP
called/VBD
lower/JJR
demand/NN
and/CC
selling/JJ
prices/NNS
in/IN
certain/JJ
packaging/NN
and/CC
industrial/JJ
markets/NNS
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Du/NNP
Pont/NNP
earned/VBD
$/$
2/CD
billion/CD
,/,
or/CC
$/$
8.46/CD
a/DT
share/NN
,/,
up/RB
18/CD
%/NN
from/IN
$/$
1.69/CD
billion/CD
,/,
or/CC
$/$
7.03/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
increased/VBD
10/CD
%/NN
to/TO
$/$
26.54/CD
billion/CD
from/IN
$/$
24.05/CD
billion/CD
./.
The/DT
increased/VBN
dividend/NN
will/MD
be/VB
paid/VBN
Dec./NNP
14/CD
to/TO
holders/NNS
of/IN
record/NN
Nov./NNP
15/CD
./.
The/DT
stock/NN
split/NN
,/,
which/WDT
is/VBZ
subject/JJ
to/TO
holder/NN
approval/NN
,/,
would/MD
be/VB
paid/VBN
on/IN
a/DT
still/RB
unspecified/JJ
date/NN
in/IN
January/NNP
to/TO
holders/NNS
of/IN
record/NN
Dec./NNP
21/CD
./.
American/NNP
Medical/NNP
International/NNP
Inc./NNP
was/VBD
dropped/VBN
from/IN
the/DT
health/NN
care/NN
providers/NNS
industry/NN
group/NN
of/IN
the/DT
Dow/NNP
Jones/NNP
Equity/NNP
Market/NNP
Index/NNP
./.
The/DT
company/NN
is/VBZ
being/VBG
acquired/VBN
./.
U.S./NNP
Healthcare/NNP
Inc./NNP
was/VBD
added/VBN
to/TO
the/DT
health/NN
care/NN
providers/NNS
group/NN
./.
Both/DT
moves/NNS
are/VBP
effective/JJ
today/NN
./.
The/DT
Canadian/JJ
government/NN
plans/VBZ
to/TO
auction/VB
on/IN
Tuesday/NNP
750/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
639.9/CD
million/CD
9.25/CD
%/NN
bonds/NNS
due/JJ
Dec./NNP
1/CD
,/,
1999/CD
,/,
the/DT
Finance/NNP
Department/NNP
said/VBD
./.
Proceeds/NNS
of/IN
the/DT
issue/NN
will/MD
be/VB
used/VBN
for/IN
general/JJ
government/NN
purposes/NNS
./.
Finnish/JJ
conglomerate/NN
Nokia/NNP
Oy/NNP
AB/NNP
said/VBD
it/PRP
reached/VBD
an/DT
agreement/NN
to/TO
buy/VB
Dutch/NNP
cable/NN
company/NN
NKF/NNP
Kabel/NNP
B.V./NNP
for/IN
420/CD
million/CD
Finnish/JJ
markka/FW
$/$
99.5/CD
million/CD
Nokia/NNP
said/VBD
it/PRP
will/MD
gain/VB
control/NN
over/IN
NKF/NNP
Kabel/NNP
by/IN
buying/VBG
51/CD
%/NN
of/IN
the/DT
shares/NNS
in/IN
NKF/NNP
Holding/NNP
N.V./NNP
,/,
which/WDT
owns/VBZ
NKF/NNP
Kabel/NNP
./.
Western/JJ
European/JJ
leaders/NNS
who/WP
favor/VBP
speedy/JJ
economic/JJ
and/CC
monetary/JJ
union/NN
are/VBP
adding/VBG
a/DT
new/JJ
argument/NN
to/TO
their/PRP$
arsenal/NN
:/:
the/DT
dizzying/VBG
political/JJ
changes/NNS
under/IN
way/NN
in/IN
Eastern/NNP
Europe/NNP
./.
French/NNP
President/NNP
Francois/NNP
Mitterrand/NNP
,/,
European/NNP
Community/NNP
Commission/NNP
President/NNP
Jacques/NNP
Delors/NNP
,/,
Spanish/NNP
Prime/NNP
Minister/NNP
Felipe/NNP
Gonzalez/NNP
and/CC
others/NNS
have/VBP
begun/VBN
linking/VBG
the/DT
rapid/JJ
changes/NNS
in/IN
the/DT
East/NNP
to/TO
the/DT
need/NN
to/TO
speed/VB
up/IN
changes/NNS
in/IN
the/DT
West/NNP
./.
They/PRP
are/VBP
stressing/VBG
that/IN
the/DT
best/JJS
way/NN
for/IN
the/DT
West/NNP
to/TO
help/VB
the/DT
East/NNP
is/VBZ
to/TO
move/VB
faster/RBR
towards/IN
Western/NNP
European/NNP
economic/JJ
and/CC
monetary/JJ
unity/NN
./.
This/DT
would/MD
make/VB
the/DT
market-oriented/JJ
system/NN
more/RBR
attractive/JJ
to/TO
Eastern/JJ
countries/NNS
,/,
they/PRP
argue/VBP
,/,
and/CC
allow/VB
greater/JJR
economic/JJ
aid/NN
and/CC
technological/JJ
know-how/NN
to/TO
flow/VB
from/IN
West/NNP
to/TO
East/NNP
./.
``/``
The/DT
only/JJ
response/NN
to/TO
the/DT
challenge/NN
being/VBG
presented/VBN
to/TO
us/PRP
by/IN
the/DT
East/NNP
,/,
''/''
Mr./NNP
Mitterrand/NNP
told/VBD
the/DT
European/NNP
Parliament/NNP
in/IN
Strasbourg/NNP
yesterday/NN
,/,
``/``
is/VBZ
to/TO
reinforce/VB
and/CC
accelerate/VB
the/DT
union/NN
and/CC
cohesion/NN
of/IN
the/DT
European/NNP
Community/NNP
./.
''/''
Mr./NNP
Mitterrand/NNP
proposed/VBD
that/IN
a/DT
conference/NN
be/VB
convened/VBN
next/JJ
fall/NN
to/TO
write/VB
a/DT
new/JJ
treaty/NN
for/IN
the/DT
EC/NNP
allowing/VBG
a/DT
European/JJ
central/JJ
bank/NN
,/,
and/CC
that/IN
the/DT
treaty/NN
be/VB
ratified/VBN
by/IN
1992/CD
./.
Mr./NNP
Mitterrand/NNP
also/RB
proposed/VBD
a/DT
separate/JJ
``/``
Bank/NNP
for/IN
Europe/NNP
''/''
that/WDT
would/MD
channel/VB
development/NN
money/NN
to/TO
the/DT
East/NNP
./.
One/CD
basis/NN
for/IN
linking/VBG
change/NN
in/IN
the/DT
East/NNP
and/CC
change/NN
in/IN
the/DT
West/NNP
is/VBZ
the/DT
notion/NN
that/IN
integrating/VBG
110/CD
million/CD
Eastern/JJ
Europeans/NNPS
with/IN
320/CD
million/CD
Western/JJ
Europeans/NNPS
is/VBZ
primarily/RB
the/DT
task/NN
of/IN
Europeans/NNPS
,/,
despite/IN
the/DT
U.S./NNP
's/POS
obvious/JJ
strategic/JJ
and/CC
economic/JJ
interest/NN
./.
Says/VBZ
a/DT
European/JJ
strategist/NN
:/:
``/``
The/DT
U.S./NNP
tends/VBZ
to/TO
look/VB
at/IN
Eastern/NNP
Europe/NNP
the/DT
Soviet/NNP
Union/NNP
Europe/NNP
looks/VBZ
at/IN
Latin/NNP
America/NNP
:/:
important/JJ
but/CC
far/RB
away/RB
./.
But/CC
for/IN
us/PRP
in/IN
Western/NNP
Europe/NNP
,/,
these/DT
are/VBP
Europeans/NNPS
next/JJ
door/NN
./.
''/''
A/DT
reintegrated/VBN
Europe/NNP
implies/VBZ
big/JJ
changes/NNS
in/IN
40-year-old/JJ
military/JJ
and/CC
economic/JJ
policies/NNS
./.
There/EX
is/VBZ
likely/JJ
to/TO
be/VB
a/DT
natural/JJ
division/NN
of/IN
labor/NN
,/,
says/VBZ
Francois/NNP
Heisbourg/NNP
,/,
director/NN
of/IN
the/DT
International/NNP
Institute/NNP
for/IN
Strategic/NNP
Studies/NNPS
in/IN
London/NNP
,/,
with/IN
the/DT
U.S./NNP
more/RBR
engaged/VBN
in/IN
strategic/JJ
issues/NNS
with/IN
the/DT
Soviet/NNP
Union/NNP
,/,
and/CC
Western/NNP
Europe/NNP
more/RBR
involved/VBN
with/IN
specific/JJ
aid/NN
measures/NNS
for/IN
the/DT
East/NNP
./.
The/DT
designation/NN
at/IN
July/NNP
's/POS
economic/JJ
summit/NN
of/IN
major/JJ
industrialized/VBN
nations/NNS
of/IN
the/DT
EC/NNP
Commission/NNP
as/IN
coordinator/NN
of/IN
Western/JJ
aid/NN
to/TO
Poland/NNP
and/CC
Hungary/NNP
was/VBD
a/DT
first/JJ
step/NN
./.
In/IN
part/NN
,/,
this/DT
division/NN
is/VBZ
dictated/VBN
by/IN
economics/NNS
:/:
West/NNP
Germany/NNP
is/VBZ
a/DT
net/JJ
exporter/NN
of/IN
capital/NN
while/IN
the/DT
U.S./NNP
is/VBZ
n't/RB
./.
While/IN
American/JJ
aid/NN
efforts/NNS
have/VBP
been/VBN
limited/VBN
by/IN
budget/NN
problems/NNS
,/,
yesterday/NN
France/NNP
announced/VBD
a/DT
three-year/JJ
,/,
four/CD
billion/CD
French/NNP
franc/NN
$/$
650/CD
million/CD
aid/NN
plan/NN
for/IN
Poland/NNP
./.
Despite/IN
sudden/JJ
changes/NNS
in/IN
the/DT
strategic/JJ
equation/NN
,/,
some/DT
Western/JJ
European/JJ
leaders/NNS
,/,
especially/RB
British/JJ
Prime/NNP
Minister/NNP
Margaret/NNP
Thatcher/NNP
,/,
remain/VBP
skeptical/JJ
about/IN
European/JJ
political/JJ
and/CC
economic/JJ
unity/NN
,/,
and/CC
are/VBP
unlikely/JJ
to/TO
let/VB
East-West/NNP
concerns/NNS
change/VB
their/PRP$
minds/NNS
./.
But/CC
British/JJ
analysts/NNS
are/VBP
beginning/VBG
to/TO
link/VB
the/DT
issues/NNS
./.
``/``
We/PRP
need/VBP
a/DT
Western/JJ
Ostpolitik/NNP
,/,
''/''
says/VBZ
John/NNP
Roper/NNP
,/,
of/IN
the/DT
Royal/NNP
Institute/NNP
of/IN
International/NNP
Affairs/NNPS
in/IN
London/NNP
,/,
referring/VBG
to/TO
West/NNP
Germany/NNP
's/POS
longstanding/JJ
policy/NN
of/IN
a/DT
diplomatic/JJ
opening/NN
to/TO
the/DT
East/NNP
./.
``/``
For/IN
Poland/NNP
and/CC
Hungary/NNP
we/PRP
need/VBP
to/TO
think/VB
about/IN
a/DT
stick-and-carrot/NN
economic/JJ
approach/NN
that/WDT
would/MD
force/VB
them/PRP
to/TO
price/VB
things/NNS
realistically/RB
in/IN
return/NN
for/IN
removing/VBG
all/PDT
our/PRP$
tariff/NN
barriers/NNS
./.
''/''
He/PRP
notes/VBZ
that/IN
the/DT
Marshall/NNP
Plan/NNP
of/IN
U.S./NNP
aid/NN
to/TO
Europe/NNP
``/``
did/VBD
n't/RB
just/RB
throw/VB
money/NN
at/IN
post-war/JJ
Europe/NNP
,/,
it/PRP
also/RB
liberalized/VBD
and/CC
opened/VBD
up/IN
those/DT
markets/NNS
./.
''/''
The/DT
French/JJ
analysis/NN
goes/VBZ
further/RB
./.
``/``
Most/JJS
of/IN
the/DT
West/NNP
's/POS
leaders/NNS
have/VBP
finally/RB
concluded/VBN
that/IN
we/PRP
all/DT
want/VBP
perestroika/FW
Soviet/JJ
leader/NN
Mikhail/NNP
Gorbachev/NNP
's/POS
policy/NN
of/IN
economic/JJ
restructuring/NN
}/)
to/TO
succeed/VB
,/,
''/''
says/VBZ
Hubert/NNP
Vedrine/NNP
,/,
security/NN
adviser/NN
to/TO
Mr./NNP
Mitterrand/NNP
./.
``/``
But/CC
they/PRP
have/VBP
n't/RB
yet/RB
drawn/VBN
the/DT
operational/JJ
policy/NN
conclusions/NNS
./.
''/''
He/PRP
adds/VBZ
that/IN
with/IN
communism/NN
collapsing/VBG
and/CC
Mr./NNP
Gorbachev/NNP
scrambling/VBG
to/TO
rejuvenate/VB
the/DT
Soviet/JJ
economy/NN
,/,
``/``
Our/PRP$
interest/NN
lies/VBZ
in/IN
a/DT
controlled/VBN
transformation/NN
,/,
a/DT
contained/VBN
nuclear/JJ
reaction/NN
,/,
so/IN
we/PRP
need/VBP
to/TO
help/VB
him/PRP
,/,
and/CC
not/RB
just/RB
with/IN
words/NNS
./.
''/''
Managing/VBG
change/NN
,/,
he/PRP
adds/VBZ
,/,
will/MD
require/VB
a/DT
lot/NN
more/JJR
aid/NN
and/CC
a/DT
prominent/JJ
role/NN
for/IN
the/DT
EC/NNP
,/,
especially/RB
in/IN
dealing/VBG
with/IN
the/DT
question/NN
of/IN
German/JJ
reunification/NN
./.
Thierry/NNP
de/NNP
Montbrial/NNP
,/,
director/NN
of/IN
the/DT
French/NNP
Institutue/NNP
for/IN
International/NNP
Relations/NNPS
in/IN
Paris/NNP
,/,
says/VBZ
it/PRP
is/VBZ
n't/RB
clear/JJ
what/WP
,/,
exactly/RB
,/,
West/NNP
Germany/NNP
wants/VBZ
./.
Any/DT
push/NN
for/IN
a/DT
Gorbachev/NNP
vision/NN
of/IN
a/DT
``/``
common/JJ
European/JJ
home/NN
,/,
''/''
implying/VBG
the/DT
eventual/JJ
dissolution/NN
of/IN
the/DT
EC/NNP
,/,
a/DT
Soviet-German/NNP
partnership/NN
and/CC
the/DT
withdrawal/NN
of/IN
U.S./NNP
forces/NNS
,/,
``/``
would/MD
be/VB
a/DT
very/RB
,/,
very/RB
serious/JJ
problem/NN
,/,
''/''
he/PRP
says/VBZ
./.
He/PRP
doubts/VBZ
a/DT
Bismarckian/JJ
super/JJ
state/NN
will/MD
emerge/VB
that/WDT
would/MD
dominate/VB
Europe/NNP
,/,
but/CC
warns/VBZ
of/IN
``/``
a/DT
risk/NN
of/IN
profound/JJ
change/NN
in/IN
the/DT
heart/NN
of/IN
the/DT
European/NNP
Community/NNP
from/IN
a/DT
Germany/NNP
that/WDT
is/VBZ
too/RB
strong/JJ
,/,
even/RB
if/IN
democratic/JJ
./.
''/''
He/PRP
adds/VBZ
:/:
``/``
We/PRP
,/,
and/CC
the/DT
rest/NN
of/IN
the/DT
EC/NNP
have/VBP
to/TO
talk/VB
to/TO
the/DT
Germans/NNPS
,/,
now/RB
,/,
frankly/RB
and/CC
raise/VB
these/DT
future/JJ
risks/NNS
with/IN
them/PRP
./.
''/''
While/IN
many/JJ
commentators/NNS
,/,
particularly/RB
French/JJ
ones/NNS
,/,
worry/VBP
that/IN
hasty/JJ
and/CC
emotional/JJ
reaction/NN
to/TO
the/DT
changes/NNS
in/IN
the/DT
East/NNP
might/MD
lead/VB
to/TO
dangerous/JJ
pressures/NNS
for/IN
a/DT
denuclearized/VBN
Europe/NNP
or/CC
the/DT
speeded-up/JJ
withdrawal/NN
of/IN
American/JJ
troops/NNS
,/,
Mr./NNP
Roper/NNP
in/IN
London/NNP
sees/VBZ
a/DT
more/RBR
positive/JJ
scenario/NN
./.
``/``
There/EX
seems/VBZ
to/TO
be/VB
a/DT
message/NN
from/IN
Moscow/NNP
there/EX
's/VBZ
a/DT
deal/NN
on/IN
offer/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
They/PRP
want/VBP
reassurance/NN
we/PRP
wo/MD
n't/RB
try/VB
to/TO
undermine/VB
or/CC
destroy/VB
the/DT
Warsaw/NNP
Pact/NNP
.../:
./.
In/IN
return/NN
,/,
the/DT
U.K./NNP
and/CC
France/NNP
could/MD
keep/VB
their/PRP$
nuclear/JJ
weapons/NNS
./.
He/PRP
adds/VBZ
:/:
``/``
Once/IN
both/DT
sides/NNS
feel/VBP
comfortable/JJ
,/,
it/PRP
should/MD
be/VB
that/RB
much/RB
easier/JJR
to/TO
make/VB
more/JJR
progress/NN
toward/IN
the/DT
economic/JJ
and/CC
social/JJ
reforms/NNS
that/WDT
are/VBP
now/RB
starting/VBG
in/IN
the/DT
East/NNP
./.
''/''
Kyle/NNP
Technology/NNP
Corp./NNP
said/VBD
a/DT
Seattle/NNP
investor/NN
has/VBZ
signed/VBN
a/DT
letter/NN
of/IN
intent/NN
to/TO
buy/VB
the/DT
company/NN
for/IN
about/IN
$/$
3.1/CD
million/CD
,/,
or/CC
$/$
1.20/CD
a/DT
share/NN
./.
The/DT
investor/NN
,/,
Donald/NNP
A./NNP
Wright/NNP
,/,
plans/VBZ
to/TO
run/VB
the/DT
company/NN
,/,
said/VBD
a/DT
spokesman/NN
for/IN
Kyle/NNP
./.
The/DT
transaction/NN
has/VBZ
been/VBN
approved/VBN
by/IN
Kyle/NNP
's/POS
board/NN
,/,
but/CC
requires/VBZ
the/DT
approval/NN
of/IN
the/DT
company/NN
's/POS
shareholders/NNS
./.
Kyle/NNP
manufactures/VBZ
electronic/JJ
components/NNS
./.
Dominion/NNP
Textile/NNP
Inc./NNP
holders/NNS
adopted/VBD
a/DT
shareholder-rights/JJ
plan/NN
at/IN
the/DT
annual/JJ
meeting/NN
./.
The/DT
so-called/JJ
poison/NN
pill/NN
took/VBD
effect/NN
Aug./NNP
9/CD
pending/VBG
ratification/NN
by/IN
holders/NNS
./.
Rights/NNS
attached/VBN
to/TO
the/DT
company/NN
's/POS
common/JJ
shares/NNS
were/VBD
issued/VBN
that/WDT
are/VBP
triggered/VBN
if/IN
a/DT
hostile/JJ
bidder/NN
acquires/VBZ
more/JJR
than/IN
20/CD
%/NN
of/IN
the/DT
shares/NNS
outstanding/JJ
./.
Once/RB
triggered/VBN
,/,
the/DT
rights/NNS
allow/VBP
holders/NNS
to/TO
buy/VB
additional/JJ
shares/NNS
at/IN
50/CD
%/NN
of/IN
the/DT
then/RB
current/JJ
market/NN
price/NN
or/CC
,/,
at/IN
the/DT
board/NN
's/POS
discretion/NN
,/,
to/TO
receive/VB
securities/NNS
or/CC
assets/NNS
./.
Separately/RB
,/,
Dominion/NNP
Textile/NNP
posted/VBD
net/JJ
income/NN
of/IN
4.7/CD
million/CD
Canadian/JJ
dollars/NNS
$/$
4/CD
million/CD
12/CD
Canadian/JJ
cents/NNS
a/DT
share/NN
,/,
for/IN
the/DT
fiscal-first/JJ
quarter/NN
ended/VBD
Sept./NNP
30/CD
./.
The/DT
company/NN
had/VBD
a/DT
net/JJ
loss/NN
of/IN
C$/$
2.3/CD
million/CD
,/,
or/CC
14/CD
Canadian/JJ
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
ago/IN
./.
Sales/NNS
were/VBD
C$/$
348.2/CD
million/CD
compared/VBN
with/IN
C$/$
307.2/CD
a/DT
year/NN
earlier/RBR
./.
Computer/NNP
Sciences/NNPS
Corp./NNP
said/VBD
it/PRP
received/VBD
a/DT
U.S./NNP
Postal/NNP
Service/NNP
contract/NN
that/WDT
will/MD
have/VB
a/DT
value/NN
of/IN
at/IN
least/JJS
$/$
33/CD
million/CD
./.
Computer/NNP
Sciences/NNPS
will/MD
perform/VB
data/NNS
processing/VBG
work/NN
for/IN
the/DT
Postal/NNP
Service/NNP
under/IN
the/DT
three-year/JJ
contract/NN
,/,
which/WDT
also/RB
includes/VBZ
two/CD
additional/JJ
option/NN
years/NNS
for/IN
which/WDT
compensation/NN
has/VBZ
n't/RB
yet/RB
been/VBN
fixed/VBN
./.
Computer/NNP
Sciences/NNPS
said/VBD
its/PRP$
work/NN
will/MD
improve/VB
mail-processing/JJ
efficiency/NN
./.
For/IN
its/PRP$
fiscal/JJ
year/NN
ended/VBD
March/NNP
31/CD
,/,
Computer/NNP
Sciences/NNPS
had/VBD
revenue/NN
of/IN
$/$
1.3/CD
billion/CD
./.
Ohbayashi/NNP
Corp./NNP
agreed/VBD
to/TO
buy/VB
E.W./NNP
Howell/NNP
Co./NNP
,/,
the/DT
U.S./NNP
subsidiary/NN
of/IN
Selmer-Sande/NNP
AS/NNP
,/,
of/IN
Norway/NNP
,/,
for/IN
about/IN
$/$
7/CD
million/CD
./.
Howell/NNP
,/,
a/DT
Port/NNP
Washington/NNP
,/,
N.Y./NNP
,/,
construction/NN
concern/NN
,/,
was/VBD
established/VBN
in/IN
1891/CD
./.
It/PRP
has/VBZ
three/CD
U.S./NNP
branches/NNS
./.
Ohbayashi/NNP
officials/NNS
said/VBD
the/DT
purchase/NN
was/VBD
undertaken/VBN
to/TO
participate/VB
in/IN
ventures/NNS
in/IN
and/CC
around/IN
New/NNP
York/NNP
City/NNP
./.
They/PRP
said/VBD
Howell/NNP
is/VBZ
particularly/RB
successful/JJ
there/RB
because/IN
of/IN
its/PRP$
membership/NN
cooperation/NN
with/IN
local/JJ
unions/NNS
./.
Ohbayashi/NNP
is/VBZ
Japan/NNP
's/POS
second/JJ
largest/JJS
construction/NN
company/NN
./.
Until/IN
now/RB
,/,
its/PRP$
inability/NN
to/TO
form/VB
membership/NN
ties/NNS
with/IN
organized/VBN
labor/NN
has/VBZ
kept/VBN
it/PRP
from/IN
penetrating/VBG
the/DT
lucrative/JJ
New/NNP
York/NNP
metropolitan/JJ
area/NN
construction/NN
market/NN
./.
The/DT
company/NN
also/RB
hopes/VBZ
the/DT
latest/JJS
acquisition/NN
will/MD
help/VB
secure/VB
large/JJ
construction/NN
orders/NNS
from/IN
Japanese/JJ
concerns/NNS
with/IN
U.S./NNP
operations/NNS
./.
Ohbayashi/NNP
cited/VBD
industry/NN
publications/NNS
crediting/VBG
Howell/NNP
,/,
currently/RB
capitalized/VBN
at/IN
$/$
2.2/CD
million/CD
,/,
with/IN
receiving/VBG
orders/NNS
valued/VBN
at/IN
$/$
225/CD
million/CD
in/IN
1988/CD
./.
The/DT
Japanese/JJ
company/NN
received/VBD
orders/NNS
totaling/VBG
12.44/CD
billion/CD
yen/NN
$/$
87.9/CD
million/CD
its/PRP$
U.S./NNP
business/NN
activities/NNS
during/IN
the/DT
fiscal/JJ
year/NN
ended/VBD
in/IN
March/NNP
./.
H./NNP
Marshall/NNP
Schwarz/NNP
was/VBD
named/VBN
chairman/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
U.S./NNP
Trust/NNP
Corp./NNP
,/,
a/DT
private-banking/JJ
firm/NN
with/IN
assets/NNS
under/IN
management/NN
of/IN
about/IN
$/$
17/CD
billion/CD
./.
Mr./NNP
Schwarz/NNP
,/,
52/CD
years/NNS
old/JJ
,/,
will/MD
succeed/VB
Daniel/NNP
P./NNP
Davison/NNP
Feb./NNP
1/CD
,/,
soon/RB
after/IN
Mr./NNP
Davison/NNP
reaches/VBZ
the/DT
company/NN
's/POS
mandatory/JJ
retirement/NN
age/NN
of/IN
65/CD
./.
Mr./NNP
Schwarz/NNP
,/,
who/WP
is/VBZ
president/NN
of/IN
U.S./NNP
Trust/NNP
,/,
will/MD
be/VB
succeeded/VBN
in/IN
that/DT
post/NN
by/IN
Jeffrey/NNP
S./NNP
Maurer/NNP
,/,
42/CD
,/,
who/WP
is/VBZ
executive/JJ
vice/NN
president/NN
in/IN
charge/NN
of/IN
the/DT
company/NN
's/POS
asset-management/NN
group/NN
./.
U.S./NNP
Trust/NNP
,/,
a/DT
136-year-old/JJ
institution/NN
that/WDT
is/VBZ
one/CD
of/IN
the/DT
earliest/JJS
high-net/NN
worth/JJ
banks/NNS
in/IN
the/DT
U.S./NNP
,/,
has/VBZ
faced/VBN
intensifying/VBG
competition/NN
from/IN
other/JJ
firms/NNS
that/WDT
have/VBP
established/VBN
,/,
and/CC
heavily/RB
promoted/VBN
,/,
private-banking/JJ
businesses/NNS
of/IN
their/PRP$
own/JJ
./.
As/IN
a/DT
result/NN
,/,
U.S./NNP
Trust/NNP
's/POS
earnings/NNS
have/VBP
been/VBN
hurt/VBN
./.
But/CC
Mr./NNP
Schwarz/NNP
welcomes/VBZ
the/DT
competition/NN
in/IN
U.S./NNP
Trust/NNP
's/POS
flagship/NN
businesses/NNS
,/,
calling/VBG
it/PRP
``/``
flattery/NN
./.
''/''
Mr./NNP
Schwarz/NNP
says/VBZ
the/DT
competition/NN
``/``
broadens/VBZ
the/DT
base/NN
of/IN
opportunity/NN
for/IN
us/PRP
./.
''/''
Other/JJ
firms/NNS
``/``
are/VBP
dealing/VBG
with/IN
the/DT
masses/NNS
./.
I/PRP
do/VBP
n't/RB
believe/VB
they/PRP
have/VBP
the/DT
culture/NN
''/''
to/TO
adequately/RB
service/VB
high-net-worth/JJ
individuals/NNS
,/,
he/PRP
adds/VBZ
./.
U.S./NNP
Trust/NNP
recently/RB
introduced/VBD
certain/JJ
mutual-fund/JJ
products/NNS
,/,
which/WDT
allow/VBP
it/PRP
to/TO
serve/VB
customers/NNS
with/IN
minimum/JJ
deposits/NNS
of/IN
$/$
250,000/CD
./.
Previously/RB
,/,
the/DT
company/NN
advertised/VBD
at/IN
the/DT
$/$
2/CD
million/CD
level/NN
./.
``/``
We/PRP
have/VBP
always/RB
taken/VBN
smaller/JJR
accounts/NNS
,/,
but/CC
now/RB
we/PRP
are/VBP
looking/VBG
for/IN
smaller/JJR
accounts/NNS
that/WDT
will/MD
grow/VB
,/,
''/''
Mr./NNP
Schwarz/NNP
says/VBZ
./.
``/``
Our/PRP$
bread/NN
and/CC
butter/NN
is/VBZ
still/RB
the/DT
$/$
2/CD
million/CD
to/TO
$/$
20/CD
million/CD
account/NN
,/,
''/''
he/PRP
says/VBZ
./.
The/DT
new/JJ
services/NNS
allow/VBP
U.S./NNP
Trust/NNP
to/TO
cater/VB
to/TO
the/DT
``/``
new/JJ
wealth/NN
,/,
''/''
Mr./NNP
Schwarz/NNP
says/VBZ
./.
Quarterly/JJ
net/JJ
income/NN
this/DT
year/NN
has/VBZ
risen/VBN
just/RB
over/IN
comparable/JJ
periods/NNS
in/IN
1988/CD
,/,
when/WRB
year-end/JJ
net/NN
was/VBD
below/IN
the/DT
1987/CD
level/NN
./.
In/IN
this/DT
year/NN
's/POS
third/JJ
quarter/NN
,/,
for/IN
example/NN
,/,
net/NN
was/VBD
$/$
10.5/CD
million/CD
,/,
or/CC
$/$
1.05/CD
a/DT
share/NN
,/,
compared/VBN
with/IN
$/$
10.3/CD
million/CD
,/,
or/CC
$/$
1.02/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Assets/NNS
as/IN
of/IN
Sept./NNP
30/CD
fell/VBD
to/TO
$/$
2.46/CD
billion/CD
from/IN
about/IN
$/$
2.77/CD
billion/CD
./.
``/``
We/PRP
will/MD
have/VB
a/DT
reasonably/RB
flat/JJ
year/NN
this/DT
year/NN
,/,
''/''
Mr./NNP
Schwarz/NNP
says/VBZ
./.
Mr./NNP
Schwarz/NNP
also/RB
said/VBD
costs/NNS
associated/VBN
with/IN
U.S./NNP
Trust/NNP
's/POS
planned/VBN
move/NN
to/TO
midtown/NN
Manhattan/NNP
from/IN
Wall/NNP
Street/NNP
will/MD
continue/VB
to/TO
be/VB
a/DT
drag/NN
on/IN
earnings/NNS
through/IN
1990/CD
./.
Mr./NNP
Schwarz/NNP
's/POS
great-grandfather/NN
founded/VBD
the/DT
New/NNP
York/NNP
toy/NN
store/NN
F.A.O./NNP
Schwarz/NNP
,/,
but/CC
his/PRP$
family/NN
no/RB
longer/RB
has/VBZ
ties/NNS
to/TO
the/DT
company/NN
./.
Mr./NNP
Schwarz/NNP
's/POS
father/NN
was/VBD
a/DT
U.S./NNP
Trust/NNP
trustee/NN
until/IN
1974/CD
./.
U.S./NNP
Trust/NNP
also/RB
created/VBD
a/DT
four-member/JJ
office/NN
of/IN
the/DT
chairman/NN
,/,
effective/JJ
Feb./NNP
1/CD
./.
It/PRP
will/MD
include/VB
Messrs./NNP
Schwarz/NNP
and/CC
Maurer/NNP
./.
Donald/NNP
M./NNP
Roberts/NNP
,/,
54/CD
,/,
treasurer/NN
,/,
and/CC
Frederick/NNP
S./NNP
Wonham/NNP
,/,
58/CD
,/,
who/WP
takes/VBZ
responsibility/NN
for/IN
the/DT
funds-service/JJ
group/NN
,/,
were/VBD
named/VBN
vice/NN
chairmen/NNS
and/CC
will/MD
serve/VB
in/IN
the/DT
office/NN
of/IN
the/DT
chairman/NN
./.
Mr./NNP
Roberts/NNP
continues/VBZ
as/IN
treasurer/NN
,/,
and/CC
Mr./NNP
Wonham/NNP
remains/VBZ
responsible/JJ
for/IN
the/DT
offices/NNS
of/IN
comptroller/NN
,/,
planning/NN
,/,
marketing/NN
and/CC
general/JJ
services/NNS
./.
Frederick/NNP
B./NNP
Taylor/NNP
,/,
48/CD
,/,
also/RB
was/VBD
named/VBN
a/DT
vice/NN
chairman/NN
and/CC
chief/NN
investment/NN
officer/NN
,/,
a/DT
new/JJ
post/NN
./.
He/PRP
previously/RB
held/VBD
similar/JJ
responsibilities/NNS
./.
Mr./NNP
Taylor/NNP
also/RB
was/VBD
named/VBN
a/DT
director/NN
,/,
increasing/VBG
the/DT
board/NN
to/TO
22/CD
,/,
but/CC
is/VBZ
not/RB
part/NN
of/IN
the/DT
new/JJ
office/NN
of/IN
the/DT
chairman/NN
./.
James/NNP
E./NNP
Bacon/NNP
,/,
58/CD
,/,
executive/JJ
vice/NN
president/NN
,/,
who/WP
has/VBZ
directed/VBN
the/DT
funds-service/JJ
group/NN
,/,
will/MD
retire/VB
./.
Sun/NNP
Microsystems/NNPS
Inc./NNP
,/,
snapping/VBG
back/RB
to/TO
profitability/NN
after/IN
its/PRP$
first/JJ
quarterly/JJ
loss/NN
as/IN
a/DT
public/JJ
firm/NN
,/,
said/VBD
it/PRP
earned/VBD
$/$
5.2/CD
million/CD
,/,
or/CC
seven/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
fiscal/JJ
first/JJ
quarter/NN
./.
Sun/NNP
,/,
a/DT
maker/NN
of/IN
computer/NN
workstations/NNS
,/,
reported/VBD
sales/NNS
of/IN
$/$
538.5/CD
million/CD
for/IN
the/DT
quarter/NN
ended/VBD
Sept./NNP
29/CD
,/,
up/RB
39/CD
%/NN
from/IN
$/$
388.5/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
In/IN
the/DT
1988/CD
period/NN
,/,
the/DT
company/NN
earned/VBD
$/$
20.6/CD
million/CD
,/,
or/CC
26/CD
cents/NNS
a/DT
share/NN
./.
Sun/NNP
's/POS
results/NNS
were/VBD
slightly/RB
better/JJR
than/IN
expectations/NNS
./.
Earlier/RBR
this/DT
month/NN
,/,
the/DT
company/NN
said/VBD
it/PRP
expected/VBD
to/TO
break/VB
even/RB
for/IN
the/DT
quarter/NN
on/IN
sales/NNS
of/IN
$/$
530/CD
million/CD
./.
In/IN
a/DT
statement/NN
,/,
Scott/NNP
McNealy/NNP
,/,
Sun/NNP
's/POS
chief/NN
executive/NN
officer/NN
,/,
said/VBD
the/DT
company/NN
's/POS
performance/NN
was/VBD
hampered/VBN
by/IN
problems/NNS
tied/VBN
to/TO
the/DT
introduction/NN
of/IN
a/DT
major/JJ
new/JJ
family/NN
of/IN
computers/NNS
in/IN
April/NNP
./.
One/CD
of/IN
those/DT
new/JJ
computers/NNS
,/,
called/VBN
Sparcstation/NNP
1/CD
,/,
accounted/VBD
for/IN
nearly/RB
half/DT
of/IN
the/DT
28,000/CD
systems/NNS
Sun/NNP
shipped/VBD
in/IN
the/DT
quarter/NN
,/,
he/PRP
said/VBD
./.
More/JJR
than/IN
two-thirds/NNS
of/IN
the/DT
systems/NNS
shipped/VBN
,/,
meanwhile/RB
,/,
were/VBD
products/NNS
introduced/VBN
in/IN
April/NNP
./.
But/CC
problems/NNS
in/IN
manufacturing/VBG
,/,
forecasting/VBG
demand/NN
and/CC
getting/VBG
the/DT
bugs/NNS
out/IN
of/IN
a/DT
new/JJ
management/NN
information/NN
system/NN
made/VBD
it/PRP
extremely/RB
difficult/JJ
for/IN
Sun/NNP
to/TO
meet/VB
demand/NN
for/IN
its/PRP$
newest/JJS
computers/NNS
well/RB
into/IN
the/DT
summer/NN
./.
These/DT
problems/NNS
also/RB
resulted/VBD
in/IN
Sun/NNP
reporting/VBG
a/DT
$/$
20.3/CD
million/CD
loss/NN
for/IN
its/PRP$
fourth/JJ
quarter/NN
ended/VBD
June/NNP
30/CD
./.
Mr./NNP
McNealy/NNP
said/VBD
the/DT
issues/NNS
that/WDT
hurt/VBP
Sun/NNP
's/POS
performance/NN
earlier/RBR
this/DT
year/NN
are/VBP
now/RB
``/``
largely/RB
''/''
behind/IN
the/DT
firm/NN
,/,
and/CC
he/PRP
indicated/VBD
that/IN
Sun/NNP
's/POS
profitability/NN
should/MD
increase/VB
throughout/IN
the/DT
fiscal/JJ
year/NN
./.
Sun/NNP
also/RB
reported/VBD
a/DT
record/NN
backlog/NN
of/IN
orders/NNS
./.
While/IN
this/DT
indicates/VBZ
continued/VBN
strong/JJ
demand/NN
for/IN
the/DT
company/NN
's/POS
desk-top/JJ
computers/NNS
,/,
Sun/NNP
faces/VBZ
increasing/VBG
competition/NN
from/IN
Digital/NNP
Equipment/NNP
Corp./NNP
and/CC
Hewlett-Packard/NNP
Co/NNP
./.
Recently/RB
,/,
analysts/NNS
have/VBP
said/VBD
Sun/NNP
also/RB
is/VBZ
vulnerable/JJ
to/TO
competition/NN
from/IN
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
,/,
which/WDT
plans/VBZ
to/TO
introduce/VB
a/DT
group/NN
of/IN
workstations/NNS
early/RB
next/IN
year/NN
,/,
and/CC
Next/NNP
Inc/NNP
./.
C.B./NNP
Rogers/NNP
Jr./NNP
was/VBD
named/VBN
chief/NN
executive/NN
officer/NN
of/IN
this/DT
business/NN
information/NN
concern/NN
./.
Mr./NNP
Rogers/NNP
,/,
60/CD
years/NNS
old/JJ
,/,
succeeds/VBZ
J.V./NNP
White/NNP
,/,
64/CD
,/,
who/WP
will/MD
remain/VB
chairman/NN
and/CC
chairman/NN
of/IN
the/DT
executive/JJ
committee/NN
./.
Mr./NNP
Rogers/NNP
,/,
who/WP
was/VBD
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
of/IN
Equifax/NNP
,/,
will/MD
retain/VB
his/PRP$
position/NN
as/IN
president/NN
./.
The/DT
company/NN
said/VBD
a/DT
new/JJ
chief/NN
operating/VBG
officer/NN
wo/MD
n't/RB
be/VB
appointed/VBN
./.
A/DT
merchant/NN
bank/NN
and/CC
investment/NN
fund/NN
have/VBP
agreed/VBN
to/TO
co-sponsor/VB
a/DT
reorganization/NN
plan/NN
to/TO
bring/VB
Sharon/NNP
Steel/NNP
Corp./NNP
out/IN
of/IN
Chapter/NN
11/CD
proceedings/NNS
and/CC
to/TO
acquire/VB
the/DT
company/NN
's/POS
steel-related/JJ
assets/NNS
in/IN
a/DT
transaction/NN
valued/VBN
at/IN
more/JJR
than/IN
$/$
300/CD
million/CD
./.
Castle/NNP
Harlan/NNP
Inc./NNP
,/,
a/DT
New/NNP
York/NNP
merchant/NN
bank/NN
,/,
and/CC
Quantum/NNP
Fund/NNP
said/VBD
they/PRP
would/MD
acquire/VB
the/DT
assets/NNS
for/IN
a/DT
combination/NN
of/IN
cash/NN
and/CC
the/DT
assumption/NN
of/IN
certain/JJ
of/IN
Sharon/NNP
's/POS
liabilities/NNS
./.
The/DT
balance/NN
of/IN
the/DT
company/NN
's/POS
assets/NNS
and/CC
liabilities/NNS
would/MD
be/VB
transferred/VBN
to/TO
a/DT
new/JJ
company/NN
that/WDT
would/MD
be/VB
owned/VBN
by/IN
Sharon/NNP
's/POS
creditors/NNS
./.
Quantum/NNP
said/VBD
it/PRP
has/VBZ
agreed/VBN
to/TO
purchase/VB
as/RB
much/RB
as/IN
$/$
50/CD
million/CD
in/IN
equity/NN
in/IN
the/DT
new/JJ
company/NN
,/,
if/IN
necessary/JJ
,/,
for/IN
the/DT
confirmation/NN
of/IN
the/DT
plan/NN
./.
Castle/NNP
Harlan/NNP
and/CC
Quantum/NNP
said/VBD
the/DT
plan/NN
is/VBZ
expected/VBN
to/TO
be/VB
filed/VBN
within/IN
60/CD
days/NNS
with/IN
the/DT
U.S./NNP
Bankruptcy/NNP
Court/NNP
in/IN
Pittsburgh/NNP
./.
The/DT
agreement/NN
is/VBZ
subject/JJ
to/TO
certain/JJ
conditions/NNS
,/,
including/VBG
obtaining/VBG
financing/NN
./.
Castle/NNP
Harlan/NNP
said/VBD
that/DT
such/JJ
financing/NN
is/VBZ
already/RB
being/VBG
sought/VBN
and/CC
that/IN
a/DT
formal/JJ
proposal/NN
would/MD
be/VB
made/VBN
to/TO
Sharon/NNP
's/POS
Chapter/NN
11/CD
trustee/NN
and/CC
other/JJ
Sharon/NNP
creditors/NNS
over/IN
the/DT
next/JJ
few/JJ
days/NNS
./.
Sharon/NNP
,/,
based/VBN
in/IN
Farrell/NNP
,/,
Pa./NNP
,/,
filed/VBD
for/IN
protection/NN
from/IN
creditors/NNS
under/IN
the/DT
federal/JJ
Bankruptcy/NNP
Code/NNP
in/IN
April/NNP
1987/CD
./.
The/DT
company/NN
had/VBD
been/VBN
one/CD
of/IN
the/DT
maninstays/NNS
of/IN
Miami/NNP
Beach/NNP
financier/NN
Victor/NNP
Posner/NNP
's/POS
empire/NN
./.
Mr./NNP
Posner/NNP
resigned/VBD
as/IN
president/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
Sharon/NNP
in/IN
April/NNP
1988/CD
./.
He/PRP
remains/VBZ
chairman/NN
,/,
but/CC
wields/VBZ
little/JJ
power/NN
at/IN
the/DT
company/NN
./.
Quantum/NNP
Fund/NNP
,/,
based/VBN
in/IN
New/NNP
York/NNP
,/,
is/VBZ
a/DT
$/$
2.1/CD
billion/CD
investment/NN
fund/NN
managed/VBN
by/IN
Soros/NNP
Fund/NNP
Management/NNP
./.
Quantum/NNP
is/VBZ
Sharon/NNP
's/POS
largest/JJS
unsecured/JJ
creditor/NN
./.
The/DT
Castle/NNP
Harlan/NNP
group/NN
includes/VBZ
Walter/NNP
Sieckman/NNP
,/,
former/JJ
chief/NN
operating/VBG
officer/NN
of/IN
Sharon/NNP
,/,
and/CC
Wolfgang/NNP
Jansen/NNP
,/,
former/JJ
executive/NN
vice/NN
president/NN
./.
Executives/NNS
at/IN
Sharon/NNP
declined/VBD
to/TO
comment/VB
on/IN
the/DT
proposal/NN
./.
The/DT
company/NN
's/POS
trustee/NN
,/,
F.E./NNP
Agnew/NNP
,/,
was/VBD
unavailable/JJ
for/IN
comment/NN
./.
Two/CD
old/JJ
friends/NNS
,/,
George/NNP
Bush/NNP
and/CC
Deng/NNP
Xiaoping/NNP
,/,
are/VBP
trying/VBG
to/TO
limit/VB
further/JJ
damage/NN
to/TO
U.S.-China/NNP
ties/NNS
./.
But/CC
as/IN
Congress/NNP
prepares/VBZ
a/DT
fresh/JJ
package/NN
of/IN
sanctions/NNS
against/IN
Beijing/NNP
,/,
the/DT
already-tense/JJ
relationship/NN
could/MD
get/VB
worse/JJR
./.
The/DT
problem/NN
for/IN
Congress/NNP
will/MD
be/VB
to/TO
weigh/VB
what/WP
China/NNP
is/VBZ
saying/VBG
to/TO
its/PRP$
people/NNS
against/IN
the/DT
more/RBR
conciliatory/JJ
message/NN
it/PRP
is/VBZ
delivering/VBG
to/TO
the/DT
Bush/NNP
administration/NN
./.
In/IN
a/DT
move/NN
apparently/RB
aimed/VBN
at/IN
heading/VBG
off/IN
new/JJ
punitive/JJ
legislation/NN
,/,
Mr./NNP
Deng/NNP
sent/VBD
an/DT
indirect/JJ
signal/NN
to/TO
Washington/NNP
via/IN
T.D./NNP
Lee/NNP
,/,
a/DT
Columbia/NNP
University/NNP
physicist/NN
who/WP
met/VBD
Mr./NNP
Deng/NNP
and/CC
other/JJ
Chinese/JJ
leaders/NNS
in/IN
Beijing/NNP
last/JJ
month/NN
./.
When/WRB
he/PRP
met/VBD
with/IN
Mr./NNP
Bush/NNP
on/IN
his/PRP$
return/NN
,/,
Mr./NNP
Lee/NNP
says/VBZ
,/,
he/PRP
told/VBD
the/DT
president/NN
that/IN
the/DT
Chinese/NNPS
``/``
made/VBD
statements/NNS
to/TO
me/PRP
that/IN
I/PRP
regard/VBP
as/IN
a/DT
first/JJ
step/NN
toward/IN
reconciliation/NN
./.
''/''
The/DT
communication/NN
Mr./NNP
Lee/NNP
brought/VBD
represents/VBZ
the/DT
softer/JJR
line/NN
the/DT
U.S./NNP
has/VBZ
been/VBN
hoping/VBG
to/TO
hear/VB
from/IN
Chinese/JJ
officials/NNS
since/IN
the/DT
June/NNP
4/CD
massacre/NN
of/IN
pro-democracy/JJ
demonstrators/NNS
in/IN
Beijing/NNP
./.
The/DT
Chinese/JJ
leader/NN
,/,
Mr./NNP
Lee/NNP
informed/VBD
Mr./NNP
Bush/NNP
,/,
expressed/VBD
some/DT
regret/NN
for/IN
what/WP
had/VBD
happened/VBN
in/IN
Beijing/NNP
and/CC
conceded/VBD
that/IN
China/NNP
's/POS
officials/NNS
bore/VBD
some/DT
responsibility/NN
./.
Mr./NNP
Lee/NNP
says/VBZ
Mr./NNP
Deng/NNP
told/VBD
him/PRP
:/:
``/``
We/PRP
should/MD
not/RB
mind/VB
those/DT
who/WP
participated/VBD
in/IN
demonstrations/NNS
,/,
signed/VBD
anti-government/NN
materials/NNS
and/CC
went/VBD
on/IN
hunger/NN
strikes/NNS
./.
''/''
Mr./NNP
Deng/NNP
added/VBD
,/,
says/VBZ
Mr./NNP
Lee/NNP
,/,
that/IN
``/``
we/PRP
really/RB
made/VBD
mistakes/NNS
./.
We/PRP
must/MD
not/RB
shirk/VB
our/PRP$
responsibility/NN
and/CC
we/PRP
can/MD
not/RB
just/RB
blame/VB
the/DT
demonstrators/NNS
./.
''/''
Mr./NNP
Lee/NNP
also/RB
reported/VBD
to/TO
the/DT
president/NN
that/IN
,/,
in/IN
a/DT
separate/JJ
meeting/NN
,/,
Communist/NNP
Party/NNP
chief/NN
Jiang/NNP
Zemin/NNP
said/VBD
the/DT
Chinese/JJ
leadership/NN
``/``
looked/VBD
kindly/RB
on/IN
the/DT
students/NNS
who/WP
took/VBD
part/NN
in/IN
the/DT
demonstrations/NNS
./.
''/''
Mr./NNP
Jiang/NNP
also/RB
pledged/VBD
that/IN
the/DT
Chinese/NNP
Red/NNP
Cross/NNP
would/MD
publish/VB
``/``
very/RB
soon/RB
''/''
a/DT
list/NN
of/IN
those/DT
killed/VBN
./.
And/CC
he/PRP
told/VBD
the/DT
physicist/NN
that/IN
China/NNP
's/POS
leaders/NNS
were/VBD
``/``
very/RB
much/RB
concerned/VBN
''/''
about/IN
the/DT
deaths/NNS
and/CC
had/VBD
arranged/VBN
aid/NN
for/IN
the/DT
victims/NNS
'/POS
families/NNS
./.
``/``
I/PRP
transmitted/VBD
my/PRP$
conversations/NNS
to/TO
the/DT
White/NNP
House/NNP
,/,
''/''
Prof./NNP
Lee/NNP
says/VBZ
./.
But/CC
,/,
he/PRP
adds/VBZ
,/,
``/``
I/PRP
was/VBD
not/RB
acting/VBG
as/IN
a/DT
messenger/NN
./.
''/''
He/PRP
says/VBZ
that/IN
the/DT
Chinese/NNPS
never/RB
asked/VBD
him/PRP
to/TO
convey/VB
their/PRP$
statements/NNS
to/TO
President/NNP
Bush/NNP
,/,
but/CC
that/IN
the/DT
White/NNP
House/NNP
spontaneously/RB
invited/VBD
him/PRP
to/TO
do/VB
so/RB
./.
Mr./NNP
Lee/NNP
concedes/VBZ
the/DT
statements/NNS
made/VBN
to/TO
him/PRP
are/VBP
far/RB
different/JJ
from/IN
others/NNS
being/VBG
issued/VBN
in/IN
China/NNP
,/,
but/CC
attributes/VBZ
that/DT
to/TO
the/DT
fact/NN
that/IN
the/DT
situation/NN
in/IN
China/NNP
is/VBZ
``/``
very/RB
complex/JJ
./.
''/''
According/VBG
to/TO
U.S./NNP
sources/NNS
in/IN
Beijing/NNP
,/,
the/DT
administration/NN
hopes/VBZ
Mr./NNP
Deng/NNP
's/POS
fairly/RB
conciliatory/JJ
comments/NNS
will/MD
prod/VB
Congress/NNP
to/TO
be/VB
cautious/JJ
about/IN
further/JJ
sanctions/NNS
against/IN
Beijing/NNP
./.
``/``
The/DT
president/NN
does/VBZ
n't/RB
want/VB
to/TO
have/VB
legislative/JJ
sanctions/NNS
,/,
''/''
says/VBZ
a/DT
U.S./NNP
official/NN
./.
``/``
But/CC
he/PRP
may/MD
not/RB
have/VB
a/DT
choice/NN
./.
''/''
Given/VBN
China/NNP
's/POS
far-from-conciliatory/JJ
statements/NNS
to/TO
its/PRP$
own/JJ
people/NNS
,/,
Mr./NNP
Bush/NNP
may/MD
be/VB
unable/JJ
to/TO
prevent/VB
new/JJ
sanctions/NNS
./.
Beijing/NNP
officials/NNS
have/VBP
said/VBN
they/PRP
will/MD
step/VB
up/IN
the/DT
campaign/NN
of/IN
arrests/NNS
and/CC
intimidation/NN
against/IN
those/DT
who/WP
participated/VBD
in/IN
the/DT
demonstrations/NNS
./.
Sentences/NNS
have/VBP
been/VBN
stiff/JJ
./.
A/DT
university/NN
student/NN
got/VBD
eight/CD
years/NNS
for/IN
participating/VBG
in/IN
the/DT
rallies/NNS
,/,
sources/NNS
in/IN
Beijing/NNP
said/VBD
,/,
while/IN
an/DT
18-year-old/JJ
worker/NN
got/VBD
10/CD
years/NNS
./.
Nor/CC
has/VBZ
Beijing/NNP
hinted/VBN
to/TO
its/PRP$
citizens/NNS
that/IN
it/PRP
will/MD
publish/VB
the/DT
identities/NNS
of/IN
those/DT
killed/VBN
./.
So/IN
far/RB
,/,
the/DT
victims/NNS
are/VBP
officially/RB
considered/VBN
evil-doers/NNS
,/,
and/CC
their/PRP$
families/NNS
receive/VBP
no/DT
compensation/NN
./.
A/DT
man/NN
gunned/VBN
down/IN
by/IN
a/DT
stray/JJ
bullet/NN
while/IN
cycling/VBG
to/TO
work/NN
carries/VBZ
,/,
after/IN
his/PRP$
death/NN
,/,
the/DT
official/JJ
stigma/NN
of/IN
``/``
counterrevolutionary/JJ
,/,
''/''
his/PRP$
wife/NN
says/VBZ
./.
What/WP
's/VBZ
more/JJR
,/,
much/JJ
of/IN
China/NNP
's/POS
official/JJ
rhetoric/NN
is/VBZ
hostile/JJ
to/TO
the/DT
U.S/NNP
./.
China/NNP
frequently/RB
lambastes/VBZ
the/DT
U.S./NNP
Embassy/NNP
for/IN
harboring/VBG
astrophysicist/NN
Fang/NNP
Lizhi/NNP
,/,
a/DT
political/JJ
dissident/NN
who/WP
took/VBD
refuge/NN
there/RB
after/IN
the/DT
massacre/NN
./.
``/``
In/IN
the/DT
U.S./NNP
,/,
there/EX
are/VBP
still/RB
people/NNS
who/WP
want/VBP
to/TO
crush/VB
China/NNP
and/CC
interfere/VB
in/IN
our/PRP$
internal/JJ
affairs/NNS
,/,
''/''
Zhu/NNP
Qizhen/NNP
,/,
China/NNP
's/POS
new/JJ
ambassador/NN
to/TO
the/DT
U.S./NNP
,/,
said/VBD
as/IN
he/PRP
left/VBD
for/IN
Washington/NNP
last/JJ
week/NN
./.
The/DT
House/NNP
and/CC
Senate/NNP
are/VBP
to/TO
begin/VB
soon/RB
hashing/VBG
out/IN
an/DT
agreement/NN
for/IN
sanctions/NNS
legislation/NN
./.
It/PRP
will/MD
probably/RB
be/VB
attached/VBN
to/TO
a/DT
State/NNP
Department/NNP
authorization/NN
bill/NN
,/,
which/WDT
Mr./NNP
Bush/NNP
is/VBZ
n't/RB
expected/VBN
to/TO
veto/VB
./.
A/DT
congressional/JJ
staffer/NN
involved/VBN
in/IN
drafting/VBG
the/DT
sanctions/NNS
says/VBZ
they/PRP
are/VBP
likely/JJ
to/TO
mirror/VB
those/DT
Mr./NNP
Bush/NNP
enacted/VBN
shortly/RB
after/IN
the/DT
massacre/NN
./.
But/CC
as/IN
legislative/JJ
action/NN
,/,
they/PRP
would/MD
carry/VB
greater/JJR
weight/NN
and/CC
would/MD
be/VB
more/RBR
difficult/JJ
to/TO
rescind/VB
./.
Measures/NNS
already/RB
in/IN
effect/NN
that/WDT
are/VBP
expected/VBN
to/TO
be/VB
made/VBN
law/NN
include/VBP
a/DT
ban/NN
on/IN
military/JJ
sales/NNS
and/CC
exchanges/NNS
,/,
a/DT
suspension/NN
of/IN
most/JJS
high-level/JJ
government/NN
contacts/NNS
and/CC
a/DT
halt/NN
to/TO
U.S./NNP
trade/NN
enhancement/NN
programs/NNS
,/,
such/JJ
as/IN
the/DT
Overseas/NNP
Private/NNP
Investment/NNP
Corp./NNP
and/CC
the/DT
Trade/NNP
Development/NNP
Program/NNP
./.
Codifying/VBG
those/DT
sanctions/NNS
could/MD
prompt/VB
Chinese/JJ
retaliation/NN
./.
``/``
If/IN
the/DT
two/CD
sides/NNS
are/VBP
n't/RB
careful/JJ
,/,
U.S.-China/NNP
ties/NNS
could/MD
spin/VB
downward/RB
,/,
out/IN
of/IN
control/NN
,/,
''/''
says/VBZ
a/DT
U.S./NNP
official/NN
in/IN
Beijing/NNP
./.
``/``
Bush/NNP
and/CC
Deng/NNP
are/VBP
hoping/VBG
{/(
that/IN
cooler/JJR
heads/NNS
prevail/VBP
./.
''/''
The/DT
amount/NN
of/IN
blood/NN
surgical/JJ
patients/NNS
can/MD
donate/VB
and/CC
store/VB
before/IN
surgery/NN
can/MD
be/VB
increased/VBN
by/IN
the/DT
new/JJ
genetically/RB
engineered/VBN
drug/NN
,/,
EPO/NNP
./.
EPO/NNP
,/,
or/CC
erythropoietin/NN
,/,
is/VBZ
a/DT
protein/NN
the/DT
human/JJ
body/NN
makes/VBZ
to/TO
stimulate/VB
the/DT
growth/NN
of/IN
red/JJ
blood/NN
cells/NNS
./.
A/DT
genetically/RB
engineered/VBN
version/NN
of/IN
the/DT
human/JJ
protein/NN
developed/VBN
by/IN
Amgen/NNP
Corp./NNP
of/IN
Thousand/NNP
Oaks/NNP
,/,
Calif./NNP
,/,
recently/RB
has/VBZ
been/VBN
marketed/VBN
by/IN
the/DT
Ortho/NNP
Pharmaceuticals/NNP
division/NN
of/IN
Johnson/NNP
&/CC
Johnson/NNP
./.
A/DT
competing/VBG
version/NN
of/IN
EPO/NNP
is/VBZ
being/VBG
developed/VBN
by/IN
Genetics/NNP
Institute/NNP
Inc./NNP
in/IN
Cambridge/NNP
,/,
Mass/NNP
./.
The/DT
drug/NN
is/VBZ
being/VBG
used/VBN
primarily/RB
to/TO
treat/VB
anemias/NNS
./.
A/DT
new/JJ
experiment/NN
,/,
reported/VBN
in/IN
this/DT
week/NN
's/POS
New/NNP
England/NNP
Journal/NNP
of/IN
Medicine/NNP
,/,
involved/VBD
giving/VBG
injections/NNS
of/IN
Amgen/NNP
's/POS
EPO/NNP
to/TO
23/CD
patients/NNS
who/WP
wanted/VBD
to/TO
store/VB
units/NNS
of/IN
their/PRP$
own/JJ
blood/NN
./.
The/DT
patients/NNS
began/VBD
receiving/VBG
EPO/NNP
injections/NNS
about/IN
a/DT
month/NN
before/IN
their/PRP$
scheduled/VBN
surgery/NN
./.
They/PRP
then/RB
began/VBD
donating/VBG
blood/NN
twice/RB
a/DT
week/NN
,/,
receiving/VBG
an/DT
EPO/NNP
injection/NN
each/DT
time/NN
./.
If/IN
tests/NNS
indicated/VBD
a/DT
low/JJ
number/NN
of/IN
red/JJ
cells/NNS
,/,
blood/NN
was/VBD
n't/RB
taken/VBN
./.
The/DT
EPO-treated/JJ
patients/NNS
donated/VBD
an/DT
average/NN
of/IN
5.4/CD
units/NNS
of/IN
blood/NN
each/DT
compared/VBN
with/IN
only/RB
4.1/CD
units/NNS
donated/VBN
by/IN
a/DT
similar/JJ
group/NN
of/IN
surgical/JJ
patients/NNS
who/WP
received/VBD
a/DT
placebo/NN
injection/NN
./.
The/DT
volume/NN
of/IN
red/JJ
cells/NNS
donated/VBN
by/IN
the/DT
EPO-treated/JJ
patients/NNS
was/VBD
41/CD
%/NN
higher/JJR
per/IN
donor/NN
,/,
the/DT
research/NN
team/NN
representing/VBG
a/DT
number/NN
of/IN
hospitals/NNS
and/CC
blood/NN
banks/NNS
reported/VBD
./.
its/PRP$
centennial/NN
year/NN
,/,
The/NNP
Wall/NNP
Street/NNP
Journal/NNP
will/MD
report/VB
events/NNS
of/IN
the/DT
past/JJ
century/NN
that/WDT
stand/VBP
as/IN
milestones/NNS
of/IN
American/JJ
business/NN
history/NN
./.
TAX/NN
SHELTERS/NNS
CALLED/VBN
Individual/NNP
Retirement/NNP
Accounts/NNPS
,/,
or/CC
``/``
IRAs/NNPS
,/,
''/''
were/VBD
created/VBN
without/IN
fanfare/NN
on/IN
Sept./NNP
2/CD
,/,
1974/CD
,/,
but/CC
grew/VBD
beyond/IN
expectations/NNS
as/IN
an/DT
inducement/NN
to/TO
personal/JJ
saving/NN
./.
That/DT
Labor/NNP
Day/NNP
,/,
in/IN
his/PRP$
first/JJ
major/JJ
act/NN
after/IN
succeeding/VBG
the/DT
resigned/JJ
Richard/NNP
Nixon/NNP
as/IN
president/NN
,/,
Gerald/NNP
R./NNP
Ford/NNP
signed/VBD
the/DT
Employee/NNP
Retirement/NNP
Income/NNP
Security/NNP
Act/NNP
./.
Pension/NN
reform/NN
was/VBD
its/PRP$
main/JJ
thrust/NN
./.
Labor/NNP
and/CC
business/NN
leaders/NNS
,/,
quoted/VBN
at/IN
the/DT
White/NNP
House/NNP
Rose/NNP
Garden/NNP
rites/NNS
,/,
hailed/VBD
its/PRP$
provisions/NNS
for/IN
insuring/VBG
corporate/JJ
pension/NN
benefits/NNS
./.
IRAs/NNPS
were/VBD
like/JJ
stepchildren/NN
there/RB
./.
The/DT
IRA/NNP
's/POS
conception/NN
is/VBZ
murky/JJ
./.
In/IN
1972/CD
,/,
then/RB
Treasury/NNP
Secretary/NNP
George/NNP
Shultz/NNP
,/,
with/IN
the/DT
key/JJ
support/NN
of/IN
Sen./NNP
Carl/NNP
Curtis/NNP
,/,
sought/VBD
some/DT
form/NN
of/IN
pensions/NNS
for/IN
the/DT
uncovered/JJ
./.
That/DT
year/NN
a/DT
four-man/JJ
group/NN
headed/VBN
by/IN
William/NNP
Lieber/NNP
in/IN
the/DT
Legislation/NNP
and/CC
Regulations/NNPS
division/NN
of/IN
the/DT
Office/NNP
of/IN
the/DT
Chief/NNP
Counsel/NNP
for/IN
the/DT
Internal/NNP
Revenue/NNP
Service/NNP
,/,
was/VBD
assigned/VBN
the/DT
task/NN
of/IN
designing/VBG
a/DT
plan/NN
./.
They/PRP
used/VBD
the/DT
1962/CD
Keogh/NNP
Plan/NNP
,/,
a/DT
pension/NN
plan/NN
created/VBN
by/IN
a/DT
New/NNP
York/NNP
congressman/NN
for/IN
the/DT
self-employed/JJ
,/,
as/IN
a/DT
partial/JJ
model/NN
./.
This/DT
team/NN
initially/RB
called/VBD
its/PRP$
new/JJ
model/NN
Personal/NNP
Retirement/NNP
Account/NNP
,/,
or/CC
``/``
PRA/NNP
./.
''/''
But/CC
it/PRP
did/VBD
n't/RB
sing/VB
./.
So/IN
they/PRP
opted/VBD
for/IN
IRA/NNP
,/,
naming/VBG
it/PRP
after/IN
Ira/NNP
Cohen/NNP
,/,
a/DT
brilliant/JJ
IRS/NNP
actuary/NN
who/WP
helped/VBD
them/PRP
./.
Ira/NNP
,/,
himself/PRP
,/,
confirms/VBZ
this/DT
account/NN
./.
IRA/NNP
rules/NNS
have/VBP
been/VBN
changed/VBN
over/IN
the/DT
years/NNS
./.
One/CD
in/IN
1981/CD
raised/VBD
to/TO
$/$
2,000/CD
a/DT
year/NN
from/IN
$/$
1,500/CD
the/DT
amount/NN
a/DT
person/NN
could/MD
put/VB
,/,
tax-deductible/JJ
,/,
into/IN
the/DT
tax-deferred/JJ
accounts/NNS
and/CC
widened/VBN
coverage/NN
to/TO
people/NNS
under/IN
employer/NN
retirement/NN
plans/NNS
./.
This/DT
caused/VBD
an/DT
explosion/NN
of/IN
IRA/NNP
promotions/NNS
by/IN
brokers/NNS
,/,
banks/NNS
,/,
mutual/JJ
funds/NNS
and/CC
others/NNS
./.
But/CC
in/IN
1986/CD
Congress/NNP
sharply/RB
reduced/VBD
the/DT
number/NN
of/IN
people/NNS
who/WP
could/MD
qualify/VB
for/IN
its/PRP$
benefits/NNS
and/CC
IRA/NNP
tax-deductions/NNS
slowed/VBD
their/PRP$
roaring/NN
growth/NN
./.
IRA/NNP
account/NN
assets/NNS
have/VBP
grown/VBN
to/TO
about/IN
$/$
400/CD
billion/CD
from/IN
$/$
393/CD
billion/CD
last/JJ
year/NN
and/CC
just/RB
$/$
26/CD
billion/CD
in/IN
1981/CD
./.
The/DT
Soviet/NNP
State/NNP
Bank/NNP
announced/VBD
a/DT
90/CD
%/NN
devaluation/NN
of/IN
the/DT
ruble/FW
against/IN
the/DT
dollar/NN
for/IN
private/JJ
transactions/NNS
,/,
in/IN
an/DT
apparent/JJ
attempt/NN
to/TO
curb/VB
the/DT
nation/NN
's/POS
rapidly/RB
growing/VBG
black/JJ
market/NN
for/IN
hard/JJ
currency/NN
./.
The/DT
measure/NN
,/,
which/WDT
will/MD
take/VB
effect/NN
next/JJ
Wednesday/NNP
,/,
will/MD
create/VB
a/DT
two-tier/JJ
exchange/NN
rate/NN
./.
Commercial/JJ
transactions/NNS
will/MD
continue/VB
to/TO
be/VB
based/VBN
on/IN
the/DT
official/JJ
rate/NN
of/IN
about/IN
0.63/CD
rubles/NNS
to/TO
the/DT
dollar/NN
./.
But/CC
for/IN
Soviet/JJ
citizens/NNS
who/WP
travel/VBP
abroad/RB
for/IN
business/NN
or/CC
tourism/NN
,/,
the/DT
rate/NN
will/MD
jump/VB
to/TO
6.26/CD
rubles/NNS
to/TO
the/DT
dollar/NN
./.
Tass/NNP
news/NN
agency/NN
said/VBD
the/DT
devaluation/NN
also/RB
will/MD
apply/VB
to/TO
foreigners/NNS
'/POS
transactions/NNS
./.
But/CC
it/PRP
did/VBD
n't/RB
elaborate/VB
,/,
and/CC
it/PRP
remains/VBZ
unclear/JJ
how/WRB
far/RB
Western/JJ
tourists/NNS
and/CC
foreigners/NNS
living/VBG
in/IN
Moscow/NNP
will/MD
be/VB
allowed/VBN
to/TO
benefit/VB
from/IN
the/DT
sweeping/VBG
rate/NN
cut/NN
./.
The/DT
current/JJ
ruble/NN
rate/NN
has/VBZ
long/RB
been/VBN
out/IN
of/IN
line/NN
with/IN
the/DT
black/JJ
market/NN
./.
As/IN
Soviet/JJ
leader/NN
Mikhail/NNP
Gorbachev/NNP
has/VBZ
opened/VBN
up/IN
the/DT
country/NN
to/TO
foreign/JJ
trade/NN
,/,
the/DT
discrepancy/NN
has/VBZ
become/VBN
ever/RB
greater/JJR
./.
Western/JJ
tourists/NNS
in/IN
the/DT
Soviet/NNP
Union/NNP
who/WP
could/MD
exchange/VB
a/DT
dollar/NN
--/:
albeit/IN
illegally/RB
--/:
for/IN
about/IN
four/CD
rubles/NNS
a/DT
year/NN
ago/IN
are/VBP
now/RB
being/VBG
offered/VBN
15/CD
rubles/NNS
or/CC
more/JJR
./.
Even/RB
at/IN
such/JJ
rates/NNS
,/,
black/JJ
marketeers/NNS
have/VBP
been/VBN
able/JJ
to/TO
make/VB
big/JJ
profits/NNS
because/IN
of/IN
the/DT
dire/JJ
shortage/NN
of/IN
consumer/NN
goods/NNS
here/RB
./.
They/PRP
use/VBP
dollars/NNS
to/TO
buy/VB
Western/JJ
items/NNS
such/JJ
as/IN
video/JJ
recorders/NNS
and/CC
personal/JJ
computers/NNS
and/CC
then/RB
sell/VB
them/PRP
at/IN
a/DT
huge/JJ
mark-up/NN
./.
The/DT
going/JJ
rate/NN
for/IN
a/DT
small/JJ
personal/JJ
computer/NN
that/WDT
costs/VBZ
about/IN
$/$
2,000/CD
in/IN
the/DT
West/NN
is/VBZ
anywhere/RB
from/IN
50,000/CD
to/TO
100,000/CD
rubles/NNS
./.
Even/RB
a/DT
pack/NN
of/IN
20/CD
Western/JJ
cigarettes/NNS
can/MD
fetch/VB
20/CD
rubles/NNS
or/CC
more/JJR
./.
With/IN
more/JJR
than/IN
300/CD
billion/CD
rubles/NNS
in/IN
savings/NN
accounts/NNS
and/CC
little/JJ
to/TO
spend/VB
them/PRP
on/IN
,/,
Soviet/JJ
consumers/NNS
grumble/VBP
at/IN
the/DT
exorbitant/JJ
black-market/NN
prices/NNS
for/IN
such/JJ
goods/NNS
--/:
but/CC
they/PRP
buy/VBP
them/PRP
anyway/RB
./.
Moscow/NNP
has/VBZ
already/RB
tacitly/RB
admitted/VBN
that/IN
the/DT
ruble/NN
is/VBZ
n't/RB
worth/JJ
much/RB
,/,
announcing/VBG
in/IN
August/NNP
that/IN
it/PRP
will/MD
pay/VB
Soviet/JJ
farmers/NNS
in/IN
hard/JJ
currency/NN
for/IN
grain/NN
and/CC
other/JJ
produce/NN
that/IN
they/PRP
grow/VBP
in/IN
excess/NN
of/IN
state-plan/JJ
quotas/NNS
./.
``/``
The/DT
absurdity/NN
of/IN
the/DT
official/JJ
rate/NN
should/MD
seem/VB
obvious/JJ
to/TO
everyone/NN
,/,
''/''
the/DT
afternoon/NN
newspaper/NN
Izvestia/NNP
wrote/VBD
in/IN
a/DT
brief/JJ
commentary/NN
on/IN
the/DT
devaluation/NN
./.
The/DT
State/NNP
Bank/NNP
's/POS
move/NN
is/VBZ
part/NN
of/IN
a/DT
drive/NN
to/TO
iron/VB
out/IN
exchange-rate/JJ
discrepancies/NNS
as/IN
Moscow/NNP
moves/VBZ
toward/IN
making/VBG
the/DT
ruble/NN
convertible/JJ
--/:
a/DT
goal/NN
that/WDT
Soviet/JJ
bankers/NNS
and/CC
economists/NNS
say/VBP
is/VBZ
still/RB
far/RB
away/RB
./.
Rumors/NNS
of/IN
an/DT
impending/VBG
devaluation/NN
have/VBP
been/VBN
circulating/VBG
in/IN
Moscow/NNP
for/IN
weeks/NNS
,/,
but/CC
the/DT
size/NN
of/IN
the/DT
cut/NN
took/VBD
many/JJ
Western/JJ
bankers/NNS
by/IN
surprise/NN
./.
``/``
It/PRP
's/VBZ
much/RB
bigger/JJR
than/IN
we/PRP
expected/VBD
,/,
''/''
said/VBD
one/CD
German/JJ
banker/NN
,/,
who/WP
asked/VBD
not/RB
to/TO
be/VB
named/VBN
./.
The/DT
next/JJ
step/NN
,/,
which/WDT
could/MD
have/VB
a/DT
larger/JJR
effect/NN
on/IN
businesses/NNS
,/,
will/MD
come/VB
early/JJ
next/JJ
month/NN
,/,
when/WRB
the/DT
Bank/NNP
for/IN
Foreign/NNP
Economic/NNP
Affairs/NNPS
is/VBZ
to/TO
hold/VB
its/PRP$
first/JJ
auction/NN
of/IN
foreign/JJ
currency/NN
./.
Soviet/JJ
companies/NNS
needing/VBG
Western/JJ
currencies/NNS
to/TO
buy/VB
equipment/NN
and/CC
supplies/NNS
abroad/RB
will/MD
be/VB
able/JJ
to/TO
submit/VB
bids/NNS
./.
Plans/NNS
for/IN
the/DT
auction/NN
,/,
which/WDT
was/VBD
supposed/VBN
to/TO
take/VB
place/NN
last/JJ
spring/NN
and/CC
become/VB
a/DT
regular/JJ
event/NN
,/,
have/VBP
been/VBN
thwarted/VBN
by/IN
a/DT
lack/NN
of/IN
hard/JJ
currency/NN
./.
Soviet/JJ
firms/NNS
that/WDT
hold/VBP
some/DT
are/VBP
unwilling/JJ
to/TO
part/VB
with/IN
it/PRP
,/,
and/CC
joint/JJ
ventures/NNS
are/VBP
n't/RB
yet/RB
allowed/VBN
to/TO
participate/VB
./.
The/DT
Kremlin/NNP
also/RB
has/VBZ
been/VBN
unwilling/JJ
to/TO
provide/VB
hard/JJ
currency/NN
for/IN
the/DT
auction/NN
,/,
using/VBG
a/DT
lot/NN
of/IN
it/PRP
instead/RB
to/TO
finance/VB
emergency/NN
imports/NNS
of/IN
consumer/NN
goods/NNS
./.
If/IN
foreign/JJ
tourists/NNS
and/CC
businesses/NNS
could/MD
sell/VB
their/PRP$
currencies/NNS
freely/RB
at/IN
the/DT
new/JJ
,/,
better/JJR
exchange/NN
rate/NN
,/,
that/WDT
would/MD
enable/VB
the/DT
State/NNP
Bank/NNP
to/TO
increase/VB
its/PRP$
dollar/NN
reserves/NNS
and/CC
would/MD
mop/VB
up/IN
some/DT
of/IN
the/DT
excess/JJ
rubles/NNS
in/IN
the/DT
economy/NN
at/IN
the/DT
same/JJ
time/NN
./.
But/CC
the/DT
amounts/NNS
they/PRP
exchange/VBP
may/MD
be/VB
limited/VBN
;/:
most/JJS
Soviet/JJ
hotels/NNS
,/,
for/IN
example/NN
,/,
demand/VBP
payment/NN
in/IN
hard/JJ
currency/NN
from/IN
Western/JJ
visitors/NNS
./.
Unless/IN
other/JJ
rules/NNS
are/VBP
changed/VBN
,/,
the/DT
devaluation/NN
could/MD
cause/VB
difficulties/NNS
for/IN
the/DT
people/NNS
it/PRP
is/VBZ
primarily/RB
meant/VBN
to/TO
help/VB
:/:
Soviets/NNPS
who/WP
travel/VBP
abroad/RB
./.
Over/IN
the/DT
past/JJ
three/CD
years/NNS
,/,
thousands/NNS
of/IN
people/NNS
here/RB
have/VBP
made/VBN
use/NN
of/IN
looser/JJR
travel/NN
restrictions/NNS
to/TO
get/VB
their/PRP$
first/JJ
taste/NN
of/IN
life/NN
abroad/RB
./.
But/CC
under/IN
current/JJ
rules/NNS
,/,
they/PRP
are/VBP
allowed/VBN
to/TO
change/VB
just/RB
200/CD
rubles/NNS
into/IN
dollars/NNS
and/CC
other/JJ
currencies/NNS
for/IN
each/DT
trip/NN
./.
At/IN
the/DT
new/JJ
rate/NN
,/,
that/WDT
would/MD
give/VB
them/PRP
about/IN
$/$
30/CD
to/TO
travel/VB
on/IN
./.
It/PRP
is/VBZ
n't/RB
yet/RB
clear/JJ
whether/IN
the/DT
200-ruble/JJ
limit/NN
will/MD
be/VB
lifted/VBN
./.
If/IN
it/PRP
is/VBZ
n't/RB
,/,
the/DT
black/JJ
market/NN
for/IN
dollars/NNS
probably/RB
will/MD
continue/VB
to/TO
thrive/VB
./.
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
made/VBD
news/NN
this/DT
summer/NN
when/WRB
it/PRP
landed/VBD
an/DT
unusual/JJ
contract/NN
to/TO
manage/VB
all/DT
of/IN
Eastman/NNP
Kodak/NNP
Co./NNP
's/POS
data-processing/JJ
needs/NNS
./.
But/CC
the/DT
computer/NN
giant/NN
appears/VBZ
to/TO
have/VB
lost/VBN
a/DT
second/JJ
key/NN
contract/NN
with/IN
Kodak/NNP
to/TO
archrival/JJ
Digital/NNP
Equipment/NNP
Corp/NNP
./.
Kodak/NNP
yesterday/NN
confirmed/VBD
that/IN
it/PRP
has/VBZ
entered/VBN
negotiations/NNS
with/IN
Maynard/NNP
,/,
Mass.-based/JJ
Digital/NNP
to/TO
manage/VB
all/DT
of/IN
its/PRP$
voice/NN
and/CC
data/NNS
communications/NNS
needs/NNS
./.
Kodak/NNP
,/,
based/VBN
in/IN
Rochester/NNP
,/,
N.Y./NNP
,/,
said/VBD
IBM/NNP
also/RB
had/VBD
bid/VBN
for/IN
the/DT
business/NN
./.
IBM/NNP
is/VBZ
based/VBN
in/IN
Armonk/NNP
,/,
N.Y/NNP
./.
The/DT
loss/NN
is/VBZ
a/DT
setback/NN
to/TO
IBM/NNP
,/,
which/WDT
pointed/VBD
to/TO
the/DT
Kodak/NNP
contract/NN
as/IN
an/DT
example/NN
of/IN
its/PRP$
success/NN
in/IN
systems/NNS
integration/NN
./.
That/DT
's/VBZ
an/DT
emerging/VBG
business/NN
in/IN
which/WDT
computer/NN
makers/NNS
or/CC
consultants/NNS
provide/VBP
turnkey/NN
communications/NNS
and/CC
computing/VBG
services/NNS
to/TO
major/JJ
corporations/NNS
./.
A/DT
Kodak/NNP
spokesman/NN
declined/VBD
to/TO
disclose/VB
the/DT
potential/JJ
value/NN
of/IN
the/DT
contract/NN
,/,
which/WDT
is/VBZ
still/RB
in/IN
negotiation/NN
./.
He/PRP
said/VBD
that/IN
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
,/,
MCI/NNP
Communications/NNPS
Corp./NNP
,/,
Rochester/NNP
Telephone/NNP
Corp./NNP
and/CC
IBM/NNP
itself/PRP
would/MD
likely/RB
be/VB
Digital/NNP
's/POS
subcontractors/NNS
on/IN
the/DT
project/NN
./.
``/``
When/WRB
we/PRP
decided/VBD
to/TO
look/VB
outside/IN
the/DT
company/NN
for/IN
critical/JJ
data-processing/NN
and/CC
communications/NNS
services/NNS
,/,
we/PRP
wanted/VBD
to/TO
get/VB
the/DT
best/JJS
vendor/NN
for/IN
that/DT
service/NN
,/,
''/''
said/VBD
Paul/NNP
Allen/NNP
,/,
the/DT
spokesman/NN
./.
``/``
That/DT
's/VBZ
why/WRB
we/PRP
went/VBD
with/IN
IBM/NNP
for/IN
data/NNS
center/NN
management/NN
.../:
and/CC
now/RB
Digital/NNP
for/IN
voice/NN
and/CC
data/NNS
telecommunications/NNS
./.
''/''
This/DT
year/NN
is/VBZ
the/DT
75th/JJ
anniversary/NN
of/IN
the/DT
Federal/NNP
Reserve/NNP
System/NNP
,/,
and/CC
some/DT
members/NNS
of/IN
Congress/NNP
think/VBP
it/PRP
's/VBZ
time/NN
to/TO
take/VB
a/DT
fresh/JJ
look/NN
at/IN
the/DT
nation/NN
's/POS
central/JJ
bank/NN
./.
After/IN
75/CD
years/NNS
there/RB
may/MD
be/VB
a/DT
few/JJ
things/NNS
that/WDT
are/VBP
worth/JJ
reexamining/VBG
./.
The/DT
regional/JJ
Federal/NNP
Reserve/NNP
Bank/NNP
setup/NN
,/,
for/IN
instance/NN
,/,
may/MD
be/VB
out/IN
of/IN
date/NN
./.
In/IN
earlier/JJR
years/NNS
it/PRP
may/MD
have/VB
seemed/VBN
reasonable/JJ
to/TO
give/VB
Richmond/NNP
,/,
Va./NNP
,/,
a/DT
bank/NN
and/CC
allow/VB
Los/NNP
Angeles/NNP
only/RB
a/DT
branch/NN
of/IN
the/DT
San/NNP
Francisco/NNP
bank/NN
,/,
but/CC
times/NNS
have/VBP
changed/VBN
./.
Maybe/RB
the/DT
whole/JJ
regional/JJ
system/NN
is/VBZ
an/DT
anachronism/NN
;/:
the/DT
Fed/NNP
,/,
after/IN
all/DT
,/,
is/VBZ
a/DT
national/JJ
central/JJ
bank/NN
./.
Some/DT
of/IN
the/DT
would-be/JJ
reformers/NNS
,/,
however/RB
,/,
want/VBP
to/TO
restore/VB
an/DT
arrangement/NN
we/PRP
once/RB
had/VBD
--/:
or/CC
,/,
at/IN
least/JJS
,/,
part/NN
of/IN
it/PRP
./.
In/IN
the/DT
beginning/NN
,/,
the/DT
treasury/NN
secretary/NN
and/CC
the/DT
comptroller/NN
of/IN
the/DT
currency/NN
were/VBD
both/DT
ex/FW
officio/FW
members/NNS
of/IN
the/DT
Federal/NNP
Reserve/NNP
Board/NNP
./.
But/CC
in/IN
1935/CD
,/,
when/WRB
Congress/NNP
was/VBD
trying/VBG
to/TO
find/VB
someone/NN
or/CC
something/NN
to/TO
blame/VB
for/IN
the/DT
Great/NNP
Depression/NNP
,/,
it/PRP
decided/VBD
to/TO
drop/VB
both/PDT
the/DT
secretary/NN
and/CC
the/DT
comptroller/NN
from/IN
the/DT
board/NN
./.
Carter/NNP
Glass/NNP
,/,
a/DT
former/JJ
treasury/NN
secretary/NN
who/WP
was/VBD
then/RB
back/RB
in/IN
Congress/NNP
,/,
probably/RB
influenced/VBD
the/DT
decision/NN
./.
He/PRP
said/VBD
that/IN
when/WRB
he/PRP
was/VBD
on/IN
the/DT
board/NN
he/PRP
felt/VBD
that/IN
he/PRP
had/VBD
a/DT
great/JJ
deal/NN
of/IN
power/NN
and/CC
,/,
somehow/RB
,/,
he/PRP
did/VBD
n't/RB
think/VB
that/DT
was/VBD
a/DT
good/JJ
thing/NN
./.
Times/NNS
have/VBP
changed/VBN
./.
Rep./NNP
Byron/NNP
Dorgan/NNP
D./NNP
,/,
N.D/NNP
./.
a/DT
bill/NN
in/IN
Congress/NNP
,/,
co-sponsored/VBN
by/IN
Rep./NNP
Lee/NNP
Hamilton/NNP
D./NNP
,/,
Ind./NNP
that/WDT
would/MD
put/VB
the/DT
treasury/NN
secretary/NN
back/RB
on/IN
the/DT
board/NN
./.
There/EX
is/VBZ
doubt/NN
that/IN
the/DT
change/NN
would/MD
accomplish/VB
much/RB
but/CC
at/IN
least/JJS
Congress/NNP
,/,
as/IN
in/IN
1935/CD
,/,
would/MD
be/VB
doing/VBG
something/NN
./.
So/IN
far/RB
no/DT
one/NN
has/VBZ
suggested/VBN
putting/VBG
the/DT
comptroller/NN
back/RB
on/IN
the/DT
board/NN
./.
Nicholas/NNP
Brady/NNP
,/,
the/DT
incumbent/JJ
treasury/NN
secretary/NN
,/,
is/VBZ
of/IN
course/NN
aware/JJ
of/IN
the/DT
proposal/NN
,/,
and/CC
he/PRP
does/VBZ
n't/RB
like/VB
it/PRP
much/RB
./.
Mr./NNP
Dorgen/NNP
has/VBZ
changed/VBN
tactics/NNS
,/,
dropping/VBG
the/DT
seat-for-the-secretary/JJ
idea/NN
./.
That/DT
may/MD
have/VB
pleased/VBN
the/DT
secretary/NN
,/,
but/CC
H./NNP
Erich/NNP
Heinemann/NNP
,/,
chief/NN
economist/NN
of/IN
the/DT
investment/NN
firm/NN
of/IN
Ladenburg/NNP
,/,
Thalmann/NNP
&/CC
Co./NNP
,/,
suggests/VBZ
that/IN
Mr./NNP
Brady/NNP
may/MD
figure/VB
he/PRP
already/RB
has/VBZ
all/PDT
the/DT
power/NN
he/PRP
needs/VBZ
./.
Like/IN
most/JJS
treasury/NN
secretaries/NNS
,/,
Mr./NNP
Brady/NNP
takes/VBZ
a/DT
keen/JJ
interest/NN
in/IN
monetary/JJ
matters/NNS
,/,
of/IN
course/NN
./.
He/PRP
was/VBD
,/,
in/IN
fact/NN
,/,
taking/VBG
an/DT
especially/RB
keen/JJ
interest/NN
in/IN
board/NN
matters/NNS
even/RB
before/IN
he/PRP
went/VBD
to/TO
the/DT
treasury/NN
./.
After/IN
the/DT
October/NNP
1987/CD
market/NN
crash/NN
,/,
Mr./NNP
Brady/NNP
as/IN
a/DT
private/JJ
citizen/NN
headed/VBD
a/DT
presidential/JJ
commission/NN
that/WDT
tried/VBD
to/TO
decide/VB
what/WP
went/VBD
wrong/JJ
and/CC
what/WP
should/MD
be/VB
done/VBN
about/IN
it/PRP
./.
One/CD
of/IN
the/DT
commission/NN
's/POS
recommendations/NNS
was/VBD
that/IN
a/DT
single/JJ
agency/NN
,/,
probably/RB
the/DT
Federal/NNP
Reserve/NNP
,/,
should/MD
coordinate/VB
regulation/NN
of/IN
all/DT
financial/JJ
markets/NNS
./.
This/DT
recommendation/NN
might/MD
have/VB
encouraged/VBN
a/DT
turf-hungry/JJ
bureaucrat/NN
to/TO
try/VB
to/TO
expand/VB
his/PRP$
power/NN
,/,
but/CC
so/RB
far/JJ
Federal/NNP
Reserve/NNP
Chairman/NNP
Alan/NNP
Greenspan/NNP
has/VBZ
n't/RB
made/VBN
a/DT
pitch/NN
for/IN
the/DT
job/NN
./.
The/DT
Fed/NNP
has/VBZ
plenty/NN
of/IN
responsibilities/NNS
in/IN
times/NNS
of/IN
market/NN
turmoil/NN
and/CC
in/IN
1987/CD
and/CC
again/RB
in/IN
1989/CD
it/PRP
appears/VBZ
to/TO
have/VB
handled/VBN
them/PRP
well/RB
./.
Mr./NNP
Brady/NNP
has/VBZ
said/VBN
he/PRP
thought/VBD
government/NN
agencies/NNS
in/IN
the/DT
latest/JJS
market/NN
drop/NN
were/VBD
better/RB
prepared/VBN
to/TO
coordinate/VB
their/PRP$
actions/NNS
,/,
but/CC
he/PRP
has/VBZ
left/VBN
no/DT
doubt/NN
that/IN
he/PRP
still/RB
likes/VBZ
the/DT
ideas/NNS
the/DT
commission/NN
advanced/VBD
nearly/RB
two/CD
years/NNS
ago/IN
./.
In/IN
recent/JJ
weeks/NNS
,/,
moreover/RB
,/,
Mr./NNP
Brady/NNP
has/VBZ
joined/VBN
other/JJ
administration/NN
officials/NNS
in/IN
trying/VBG
to/TO
urge/VB
the/DT
Fed/NNP
toward/IN
lower/JJR
interest/NN
rates/NNS
./.
The/DT
urging/VBG
admittedly/RB
has/VBZ
been/VBN
gentle/JJ
./.
In/IN
an/DT
interview/NN
with/IN
the/DT
Washington/NNP
Post/NNP
in/IN
early/JJ
October/NNP
,/,
the/DT
secretary/NN
said/VBD
the/DT
Fed/NNP
may/MD
be/VB
slightly/RB
more/RBR
interested/JJ
in/IN
curbing/VBG
inflation/NN
than/IN
the/DT
administration/NN
is/VBZ
,/,
while/IN
the/DT
administration/NN
may/MD
put/VB
slightly/RB
more/JJR
emphasis/NN
on/IN
spurring/VBG
economic/JJ
growth/NN
./.
At/IN
least/JJS
some/DT
economists/NNS
,/,
of/IN
course/NN
,/,
would/MD
argue/VB
that/IN
inflation/NN
deserves/VBZ
a/DT
lot/NN
of/IN
emphasis/NN
./.
Earlier/RBR
this/DT
month/NN
the/DT
St./NNP
Louis/NNP
Fed/NNP
held/VBD
a/DT
conference/NN
to/TO
assess/VB
the/DT
system/NN
's/POS
first/JJ
75/CD
years/NNS
./.
Allan/NNP
Meltzer/NNP
,/,
a/DT
Carnegie-Mellon/NNP
University/NNP
economist/NN
,/,
noted/VBD
that/IN
the/DT
Fed/NNP
's/POS
record/NN
included/VBD
the/DT
longest/JJS
,/,
most/RBS
sustained/VBN
,/,
peacetime/NN
inflation/NN
in/IN
our/PRP$
history/NN
,/,
dating/VBG
from/IN
either/RB
1966/CD
or/CC
1967/CD
to/TO
1989/CD
./.
The/DT
inflation-growth/NN
argument/NN
is/VBZ
an/DT
old/JJ
one/CD
,/,
but/CC
Mr./NNP
Brady/NNP
,/,
on/IN
the/DT
board/NN
or/CC
off/IN
,/,
is/VBZ
surely/RB
trying/VBG
to/TO
influence/VB
Fed/NNP
policy/NN
./.
Equally/RB
importantly/RB
,/,
the/DT
treasury/NN
secretary/NN
has/VBZ
spearheaded/VBN
the/DT
administration/NN
effort/NN
to/TO
bring/VB
the/DT
U.S./NNP
dollar/NN
down/IN
by/IN
shopping/VBG
avidly/RB
for/IN
West/JJ
German/JJ
marks/NNS
and/CC
Japanese/JJ
yen/NNS
./.
The/DT
treasury/NN
can/MD
do/VB
something/NN
on/IN
its/PRP$
own/JJ
,/,
but/CC
to/TO
have/VB
any/DT
hope/NN
of/IN
success/NN
it/PRP
needs/VBZ
help/NN
from/IN
the/DT
Fed/NNP
./.
The/DT
central/JJ
bank/NN
has/VBZ
been/VBN
helping/VBG
,/,
but/CC
apparently/RB
not/RB
especially/RB
eagerly/RB
./.
The/DT
Fed/NNP
has/VBZ
been/VBN
intervening/VBG
in/IN
foreign/JJ
currency/NN
markets/NNS
,/,
all/RB
right/JJ
,/,
but/CC
through/IN
August/NNP
,/,
at/IN
least/JJS
,/,
it/PRP
appeared/VBD
to/TO
be/VB
``/``
sterilizing/VBG
''/''
the/DT
intervention/NN
./.
In/IN
other/JJ
words/NNS
,/,
it/PRP
was/VBD
offsetting/VBG
purchases/NNS
of/IN
marks/NNS
and/CC
yen/NN
by/IN
buying/VBG
dollars/NNS
in/IN
the/DT
domestic/JJ
money/NN
market/NN
./.
Now/RB
,/,
sterilized/VBN
intervention/NN
may/MD
have/VB
some/DT
effect/NN
./.
When/WRB
traders/NNS
see/VBP
the/DT
Fed/NNP
is/VBZ
in/IN
the/DT
exchange/NN
market/NN
it/PRP
may/MD
make/VB
them/PRP
tread/VB
a/DT
little/JJ
carefully/RB
,/,
for/IN
fear/NN
of/IN
what/WP
the/DT
central/JJ
bank/NN
may/MD
do/VB
./.
But/CC
it/PRP
's/VBZ
generally/RB
accepted/VBN
that/IN
sterilized/VBN
intervention/NN
has/VBZ
little/RB
or/CC
no/DT
lasting/JJ
impact/NN
on/IN
currency/NN
values/NNS
./.
After/IN
August/NNP
the/DT
Fed/NNP
may/MD
have/VB
stopped/VBN
sterilizing/VBG
,/,
but/CC
it/PRP
's/VBZ
hard/JJ
to/TO
see/VB
much/JJ
impact/NN
on/IN
the/DT
dollar/NN
./.
The/DT
dollar/NN
is/VBZ
still/RB
highly/RB
volatile/JJ
./.
The/DT
Fed/NNP
has/VBZ
let/VBN
interest/NN
rates/NNS
slip/VBP
slightly/RB
,/,
but/CC
whether/IN
the/DT
main/JJ
reason/NN
was/VBD
dollar/NN
intervention/NN
,/,
the/DT
gloomy/JJ
reports/NNS
on/IN
manufacturing/VBG
employment/NN
,/,
or/CC
the/DT
Friday/NNP
13/CD
market/NN
drop/NN
,/,
only/RB
Mr./NNP
Greenspan/NNP
and/CC
his/PRP$
associates/NNS
know/VBP
./.
Earlier/RBR
this/DT
year/NN
,/,
Martin/NNP
Feldstein/NNP
,/,
president/NN
of/IN
the/DT
National/NNP
Bureau/NNP
of/IN
Economic/NNP
Research/NNP
,/,
argued/VBD
forcefully/RB
that/IN
a/DT
government/NN
that/WDT
wants/VBZ
steady/JJ
,/,
stable/JJ
exchange/NN
rates/NNS
might/MD
try/VB
some/DT
steady/JJ
stable/JJ
economic/JJ
policies/NNS
./.
Trying/VBG
to/TO
manage/VB
exchange/NN
rates/NNS
to/TO
some/DT
desired/VBN
level/NN
,/,
he/PRP
said/VBD
,/,
``/``
would/MD
mean/VB
diverting/VBG
monetary/JJ
and/CC
fiscal/JJ
policies/NNS
from/IN
their/PRP$
customary/JJ
roles/NNS
and/CC
thereby/RB
risking/VBG
excessive/JJ
inflation/NN
and/CC
unemployment/NN
and/CC
inadequate/JJ
capital/NN
formation/NN
./.
''/''
The/DT
more/RBR
we/PRP
think/VBP
about/IN
it/PRP
,/,
the/DT
more/RBR
we/PRP
suspect/VBP
Mr./NNP
Brady/NNP
does/VBZ
indeed/RB
have/VB
enough/JJ
power/NN
where/WRB
he/PRP
already/RB
is/VBZ
./.
This/DT
has/VBZ
been/VBN
a/DT
week/NN
of/IN
stunning/JJ
events/NNS
behind/IN
what/WP
was/VBD
once/RB
called/VBN
the/DT
Iron/NNP
Curtain/NNP
and/CC
interesting/JJ
shifts/NNS
in/IN
official/JJ
American/JJ
policy/NN
toward/IN
Moscow/NNP
./.
It/PRP
has/VBZ
also/RB
been/VBN
a/DT
week/NN
when/WRB
inside-the-beltway/NN
Washington/NNP
has/VBZ
had/VBN
a/DT
high/JJ
old/JJ
time/NN
gnawing/NN
over/IN
ex-President/JJ
Reagan/NNP
's/POS
multimillion-dollar/JJ
junket/NN
in/IN
Japan/NNP
./.
The/DT
latter/NN
may/MD
seem/VB
oddly/RB
irrelevant/JJ
,/,
if/IN
not/RB
downright/RB
trivial/JJ
,/,
given/VBN
the/DT
big/JJ
picture/NN
and/CC
the/DT
way/NN
we/PRP
have/VBP
handled/VBN
it/PRP
in/IN
the/DT
nation/NN
's/POS
capital/NN
has/VBZ
done/VBN
nothing/NN
to/TO
dispel/VB
that/DT
impression/NN
./.
In/IN
fact/NN
,/,
however/RB
,/,
Mr./NNP
Reagan/NNP
's/POS
casual/JJ
debasement/NN
of/IN
the/DT
office/NN
he/PRP
so/RB
recently/RB
held/VBD
raises/VBZ
issues/NNS
about/IN
which/WDT
Americans/NNPS
can/MD
actually/RB
do/VB
something/NN
./.
Our/PRP$
ability/NN
to/TO
influence/VB
the/DT
outcome/NN
of/IN
events/NNS
in/IN
Eastern/NNP
Europe/NNP
and/CC
the/DT
Soviet/NNP
Union/NNP
is/VBZ
far/RB
more/RBR
marginal/JJ
./.
Those/DT
events/NNS
continue/VBP
to/TO
move/VB
at/IN
a/DT
rate/NN
,/,
and/CC
in/IN
a/DT
direction/NN
,/,
which/WDT
leave/VBP
informed/VBN
commentary/NN
--/:
let/VB
alone/JJ
policy/NN
--/:
far/RB
in/IN
their/PRP$
wake/NN
./.
Earlier/RBR
this/DT
week/NN
,/,
Soviet/NNP
Foreign/NNP
Minister/NNP
Eduard/NNP
A./NNP
Shevardnadze/NNP
confessed/VBD
that/IN
the/DT
U.S.S.R./NNP
ignored/VBD
universal/JJ
human/JJ
values/NNS
by/IN
invading/VBG
Afghanistan/NNP
and/CC
,/,
to/TO
put/VB
it/PRP
bluntly/RB
,/,
``/``
engaged/VBD
in/IN
a/DT
violation/NN
of/IN
the/DT
ABM/NNP
Treaty/NNP
''/''
by/IN
building/VBG
its/PRP$
radar/NN
station/NN
at/IN
Krasnoyarsk/NNP
./.
Hungary/NNP
is/VBZ
no/RB
longer/JJR
a/DT
``/``
Socialist/NNP
Peoples/NNPS
''/''
republic/NN
,/,
the/DT
Communist/NNP
Party/NNP
no/RB
longer/JJR
has/VBZ
automatic/JJ
delegates/NNS
in/IN
the/DT
U.S.S.R./NNP
's/POS
Congress/NNP
of/IN
Peoples/NNPS
Deputies/NNPS
and/CC
Egon/NNP
Krenz/NNP
was/VBD
not/RB
backed/VBN
unanimously/RB
by/IN
his/PRP$
fellow/NN
party/NN
functionaries/NNS
when/WRB
he/PRP
took/VBD
over/IN
as/IN
East/NNP
Germany/NNP
's/POS
new/JJ
maximum/JJ
leader/NN
./.
All/DT
of/IN
that/DT
is/VBZ
just/RB
for/IN
starters/NNS
,/,
or/CC
so/IN
the/DT
hundreds/NNS
of/IN
thousands/NNS
of/IN
Eastern/NNP
Europeans/NNPS
in/IN
the/DT
streets/NNS
seem/VBP
to/TO
hope/VB
and/CC
are/VBP
certainly/RB
demanding/VBG
./.
Of/IN
like/JJ
,/,
though/IN
lesser/JJR
,/,
note/NN
,/,
Secretary/NNP
of/IN
State/NNP
James/NNP
Baker/NNP
put/VBD
the/DT
administration/NN
four-square/NN
behind/IN
perestroika/FW
and/CC
glasnost/FW
,/,
and/CC
therefore/RB
behind/IN
Mikhail/NNP
Gorbachev/NNP
,/,
in/IN
a/DT
pair/NN
of/IN
carefully/RB
reasoned/VBN
speeches/NNS
over/IN
the/DT
past/JJ
week/NN
or/CC
so/RB
./.
And/CC
,/,
last/JJ
but/CC
not/RB
least/JJS
,/,
President/NNP
George/NNP
Bush/NNP
now/RB
views/VBZ
the/DT
changes/NNS
in/IN
Eastern/NNP
Europe/NNP
as/IN
``/``
absolutely/RB
extraordinary/JJ
''/''
and/CC
believes/VBZ
that/IN
Mr./NNP
Krenz/NNP
``/``
ca/MD
n't/RB
turn/VB
the/DT
clock/NN
back/RB
''/''
in/IN
East/NNP
Germany/NNP
because/IN
the/DT
change/NN
is/VBZ
too/RB
inexorable/JJ
,/,
''/''
as/IN
he/PRP
told/VBD
the/DT
New/NNP
York/NNP
Times/NNP
's/POS
R.W./NNP
Apple/NNP
Jr/NNP
./.
other/JJ
words/NNS
,/,
after/IN
some/DT
highly/RB
visible/JJ
dithering/VBG
and/CC
public/JJ
airing/NN
of/IN
differences/NNS
,/,
the/DT
administration/NN
has/VBZ
come/VBN
down/IN
on/IN
the/DT
side/NN
of/IN
those/DT
who/WP
believe/VBP
that/IN
what/WP
we/PRP
are/VBP
witnessing/VBG
from/IN
Berlin/NNP
to/TO
Siberia/NNP
is/VBZ
a/DT
good/JJ
thing/NN
to/TO
be/VB
welcomed/VBN
,/,
rather/RB
than/IN
a/DT
new/JJ
thing/NN
to/TO
be/VB
feared/VBN
or/CC
viewed/VBN
with/IN
suspicion/NN
./.
All/DT
of/IN
this/DT
is/VBZ
what/WDT
history/NN
will/MD
note/VB
,/,
assuming/VBG
that/IN
events/NNS
do/VBP
n't/RB
make/VB
it/PRP
seem/VB
a/DT
bad/JJ
joke/NN
,/,
when/WRB
the/DT
record/NN
of/IN
this/DT
time/NN
is/VBZ
put/VBN
down/IN
./.
For/IN
journalists/NNS
,/,
however/RB
,/,
who/WP
write/VBP
what/WP
they/PRP
fondly/RB
view/VBP
as/IN
history/NN
's/POS
first/JJ
draft/NN
,/,
this/DT
has/VBZ
also/RB
been/VBN
a/DT
week/NN
to/TO
give/VB
a/DT
lot/NN
of/IN
space/NN
and/CC
time/NN
to/TO
Ron/NNP
and/CC
Nancy/NNP
's/POS
sales/NNS
appearance/NN
in/IN
Japan/NNP
on/IN
behalf/NN
of/IN
a/DT
communications/NNS
giant/JJ
and/CC
its/PRP$
controversial/JJ
founder/NN
./.
It/PRP
has/VBZ
been/VBN
a/DT
well-paid/JJ
transaction/NN
,/,
this/DT
bartering/NN
away/RB
of/IN
the/DT
prestige/NN
of/IN
the/DT
republic/NN
's/POS
highest/JJS
office/NN
./.
The/DT
Japanese/JJ
industrialist/NN
has/VBZ
coughed/VBN
up/IN
at/IN
least/JJS
$/$
2/CD
million/CD
,/,
the/DT
Japanese/JJ
government/NN
has/VBZ
put/VBN
up/IN
just/RB
about/IN
as/RB
much/JJ
,/,
or/CC
so/IN
it/PRP
is/VBZ
reported/VBN
and/CC
at/IN
least/JJS
one/CD
estimate/NN
puts/VBZ
the/DT
total/JJ
tab/NN
at/IN
$/$
7/CD
million/CD
./.
All/DT
of/IN
which/WDT
has/VBZ
enabled/VBN
those/DT
of/IN
us/PRP
in/IN
Washington/NNP
who/WP
enjoy/VBP
wallowing/VBG
in/IN
such/JJ
things/NNS
to/TO
go/VB
into/IN
high/JJ
public/JJ
dudgeon/NN
,/,
as/IN
Mr./NNP
Apple/NNP
and/CC
I/PRP
did/VBD
the/DT
other/JJ
night/NN
on/IN
ABC/NNP
's/POS
``/``
Nightline/NNP
./.
''/''
Punching/VBG
away/RB
,/,
we/PRP
raised/VBD
what/WP
I/PRP
still/RB
think/VBP
were/VBD
all/PDT
the/DT
right/JJ
issues/NNS
and/CC
landed/VBD
more/JJR
than/IN
one/CD
hard/JJ
blow/NN
,/,
but/CC
at/IN
the/DT
end/NN
of/IN
the/DT
affair/NN
,/,
there/EX
was/VBD
just/RB
the/DT
tiniest/JJS
nagging/NN
worry/NN
that/IN
we/PRP
had/VBD
been/VBN
aiming/VBG
at/IN
the/DT
wrong/JJ
target/NN
./.
As/IN
one/CD
of/IN
his/PRP$
defenders/NNS
so/RB
aptly/RB
put/VB
it/PRP
,/,
President/NNP
Reagan/NNP
was/VBD
simply/RB
doing/VBG
what/WP
he/PRP
had/VBD
always/RB
done/VBN
before/IN
his/PRP$
election/NN
some/DT
would/MD
say/VB
thereafter/RB
as/RB
well/RB
)/)
./.
He/PRP
was/VBD
performing/VBG
for/IN
pay/NN
,/,
and/CC
why/WRB
should/MD
anyone/NN
expect/VB
anything/NN
more/JJR
?/.
Primarily/RB
because/IN
there/EX
's/VBZ
more/JJR
to/TO
the/DT
matter/NN
than/IN
Ronald/NNP
Reagan/NNP
's/POS
personal/JJ
values/NNS
,/,
or/CC
lack/NN
of/IN
them/PRP
./.
Selling/VBG
the/DT
presidency/NN
for/IN
a/DT
mess/NN
of/IN
pottage/NN
is/VBZ
not/RB
so/RB
much/JJ
a/DT
devaluation/NN
from/IN
the/DT
norm/NN
of/IN
public/JJ
life/NN
today/NN
as/IN
it/PRP
is/VBZ
a/DT
reflection/NN
of/IN
the/DT
disintegration/NN
of/IN
public/JJ
standards/NNS
./.
The/DT
theme/NN
song/NN
for/IN
the/DT
1980s/CD
has/VBZ
been/VBN
,/,
``/``
Anything/NN
Goes/VBZ
,/,
''/''
and/CC
it/PRP
has/VBZ
been/VBN
whistled/VBN
with/IN
gusto/NN
from/IN
Wall/NNP
Street/NNP
to/TO
some/DT
of/IN
the/DT
highest/JJS
peaks/NNS
of/IN
televangelism/NN
./.
There/EX
are/VBP
those/DT
who/WP
say/VBP
that/IN
this/DT
is/VBZ
nothing/NN
new/JJ
,/,
that/IN
America/NNP
has/VBZ
always/RB
suffered/VBN
from/IN
a/DT
bad/JJ
case/NN
of/IN
schizophrenia/NN
when/WRB
it/PRP
comes/VBZ
to/TO
the/DT
dichotomy/NN
between/IN
what/WP
is/VBZ
professed/VBN
and/CC
what/WP
is/VBZ
practiced/VBN
./.
There/EX
is/VBZ
evidence/NN
to/TO
support/VB
that/DT
view/NN
./.
Eighty-three/CD
years/NNS
ago/IN
,/,
William/NNP
James/NNP
wrote/VBD
to/TO
H.G./NNP
Wells/NNP
:/:
``/``
The/DT
moral/JJ
flabbiness/NN
born/VBN
of/IN
the/DT
exclusive/JJ
worship/NN
of/IN
the/DT
bitch/NN
goddess/NN
success/NN
.../:
that/IN
,/,
with/IN
the/DT
squalid/JJ
cash/NN
interpretation/NN
put/VBN
on/IN
the/DT
word/NN
success/NN
,/,
is/VBZ
our/PRP$
national/JJ
disease/NN
./.
''/''
But/CC
if/IN
it/PRP
was/VBD
the/DT
national/JJ
disease/NN
in/IN
1906/CD
,/,
it/PRP
is/VBZ
today/NN
the/DT
national/JJ
commonplace/NN
./.
If/IN
there/EX
is/VBZ
no/DT
law/NN
against/IN
it/PRP
,/,
do/VB
it/PRP
./.
If/IN
the/DT
law/NN
leaves/VBZ
loopholes/NNS
,/,
use/VB
them/PRP
./.
If/IN
there/EX
is/VBZ
no/DT
moral/JJ
prohibition/NN
that/WDT
expressly/RB
forbids/VBZ
it/PRP
,/,
full/JJ
speed/NN
ahead/RB
./.
And/CC
if/IN
you/PRP
are/VBP
caught/VBN
or/CC
if/IN
people/NNS
complain/VBP
,/,
simply/RB
argue/VB
that/IN
``/``
everyone/NN
does/VBZ
it/PRP
''/''
or/CC
``/``
no/DT
one/NN
said/VBD
I/PRP
should/MD
n't/RB
''/''
and/CC
brazen/VB
it/PRP
out/RP
./.
As/IN
a/DT
last/JJ
recourse/NN
,/,
when/WRB
all/DT
else/RB
has/VBZ
failed/VBN
and/CC
you/PRP
are/VBP
pinned/VBN
,/,
apologize/VB
for/IN
having/VBG
disappointed/VBN
those/DT
who/WP
trusted/VBD
you/PRP
but/CC
deny/VB
having/VBG
actually/RB
done/VBN
anything/NN
wrong/JJ
./.
instance/NN
,/,
Jim/NNP
Bakker/NNP
's/POS
remarks/NNS
upon/IN
being/VBG
sentenced/VBN
to/TO
prison/NN
this/DT
Tuesday/NNP
for/IN
defrauding/VBG
the/DT
faithful/NN
./.
the/DT
troubling/VBG
dissonance/NN
between/IN
Mr./NNP
Shevardnadze/NNP
's/POS
speech/NN
of/IN
confession/NN
this/DT
week/NN
and/CC
the/DT
hang-tough/JJ
defense/NN
of/IN
everyone/NN
concerned/VBN
with/IN
the/DT
Iran-Contra/NNP
affair/NN
./.
The/DT
Soviet/JJ
foreign/JJ
minister/NN
publicly/RB
concedes/VBZ
that/IN
his/PRP$
government/NN
``/``
violated/VBD
norms/NNS
of/IN
behavior/NN
''/''
in/IN
Afghanistan/NNP
and/CC
just/RB
plain/JJ
lied/VBD
about/IN
the/DT
radar/NN
station/NN
./.
We/PRP
have/VBP
people/NNS
in/IN
high/JJ
place/NN
still/RB
lying/VBG
through/IN
their/PRP$
teeth/NNS
about/IN
Iran-Contra/NNP
,/,
and/CC
that/DT
apparently/RB
is/VBZ
n't/RB
going/VBG
to/TO
change/VB
./.
For/IN
that/DT
matter/NN
,/,
those/DT
long/JJ
ago/RB
identified/VBN
as/IN
liars/NNS
are/VBP
still/RB
given/VBN
respectful/JJ
hearings/NNS
in/IN
the/DT
press/NN
./.
That/DT
is/VBZ
the/DT
key/NN
to/TO
the/DT
current/JJ
``/``
national/JJ
disease/NN
./.
''/''
No/DT
one/NN
seems/VBZ
willing/JJ
to/TO
hold/VB
anyone/NN
in/IN
public/JJ
life/NN
to/TO
a/DT
standard/NN
higher/JJR
than/IN
the/DT
narrowest/JJS
construction/NN
of/IN
the/DT
law/NN
./.
The/DT
occasional/JJ
media/NNS
witch/NN
hunt/NN
about/IN
some/DT
politician/NN
's/POS
private/JJ
peccadilloes/NNS
notwithstanding/RB
,/,
the/DT
general/JJ
inclination/NN
is/VBZ
to/TO
offer/VB
a/DT
version/NN
of/IN
the/DT
old/JJ
refrain/NN
,/,
``/``
Who/WP
am/VBP
I/PRP
to/TO
judge/VB
?/.
''/''
Thus/RB
,/,
no/DT
standards/NNS
,/,
no/DT
judgment/NN
and/CC
no/DT
values/NNS
./.
``/``
You/PRP
are/VBP
mad/JJ
because/IN
he/PRP
's/VBZ
making/VBG
so/RB
much/JJ
money/NN
,/,
''/''
say/VBP
President/NNP
Reagan/NNP
's/POS
defenders/NNS
./.
No/RB
,/,
we/PRP
ought/MD
to/TO
be/VB
mad/JJ
because/IN
he/PRP
has/VBZ
demeaned/VBN
the/DT
office/NN
we/PRP
gave/VBD
him/PRP
,/,
enlisting/VBG
it/PRP
in/IN
the/DT
service/NN
of/IN
private/JJ
gain/NN
,/,
just/RB
as/IN
we/PRP
ought/MD
to/TO
be/VB
mad/JJ
that/IN
public/JJ
officials/NNS
lie/VBP
through/IN
their/PRP$
teeth/NNS
,/,
play/VBP
disingenuous/JJ
games/NNS
about/IN
their/PRP$
activities/NNS
or/CC
,/,
to/TO
steal/VB
a/DT
phrase/NN
,/,
make/VBP
public/JJ
service/NN
a/DT
private/JJ
trough/NN
./.
``/``
I/PRP
'm/VBP
not/RB
going/VBG
to/TO
be/VB
stampeded/VBN
into/IN
overreacting/VBG
to/TO
any/DT
of/IN
this/DT
,/,
President/NNP
Bush/NNP
told/VBD
Mr./NNP
Apple/NNP
in/IN
this/DT
week/NN
's/POS
interview/NN
./.
He/PRP
was/VBD
referring/VBG
to/TO
the/DT
``/``
absolutely/RB
extraordinary/JJ
''/''
events/NNS
in/IN
Eastern/NNP
Europe/NNP
,/,
and/CC
it/PRP
is/VBZ
a/DT
defensible/JJ
position/NN
./.
But/CC
there/EX
is/VBZ
no/DT
defense/NN
at/IN
all/DT
for/IN
the/DT
ethos/NN
of/IN
the/DT
1980s/CD
./.
We/PRP
did/VBD
n't/RB
stampede/VB
into/IN
it/PRP
,/,
we/PRP
slithered/VBD
and/CC
slipped/VBD
down/IN
the/DT
long/JJ
slope/NN
,/,
and/CC
now/RB
we/PRP
have/VBP
as/RB
its/PRP$
quintessential/JJ
symbol/NN
a/DT
former/JJ
president/NN
huckstering/VBG
for/IN
a/DT
foreign/JJ
poohbah/NN
./.
Or/CC
perhaps/RB
that/DT
is/VBZ
a/DT
fitting/JJ
symbol/NN
for/IN
the/DT
United/NNP
States/NNPS
of/IN
1989/CD
:/:
Everything/NN
for/IN
sale/NN
;/:
nothing/NN
of/IN
real/JJ
value/NN
./.
Mr./NNP
Carter/NNP
is/VBZ
a/DT
political/JJ
commentator/NN
who/WP
heads/VBZ
a/DT
television/NN
production/NN
firm/NN
./.
Cineplex/NNP
Odeon/NNP
Corp./NNP
directors/NNS
said/VBD
the/DT
company/NN
's/POS
chairman/NN
and/CC
chief/NN
executive/NN
,/,
Garth/NNP
Drabinsky/NNP
,/,
is/VBZ
considering/VBG
bidding/VBG
780.6/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
666/CD
million/CD
the/DT
company/NN
./.
The/DT
board/NN
said/VBD
Mr./NNP
Drabinsky/NNP
and/CC
Vice/NNP
Chairman/NNP
Myron/NNP
Gottlieb/NNP
are/VBP
negotiating/VBG
financing/NN
before/IN
offering/VBG
C$/$
16.40/CD
a/DT
share/NN
to/TO
acquire/VB
all/DT
of/IN
Cineplex/NNP
's/POS
shares/NNS
outstanding/JJ
./.
The/DT
directors/NNS
added/VBD
that/IN
the/DT
two/CD
executives/NNS
have/VBP
n't/RB
reached/VBN
a/DT
final/JJ
decision/NN
to/TO
proceed/VB
with/IN
a/DT
bid/NN
and/CC
that/IN
until/IN
an/DT
offer/NN
is/VBZ
made/VBN
the/DT
board/NN
will/MD
continue/VB
seeking/VBG
higher/JJR
offers/NNS
from/IN
other/JJ
bidders/NNS
./.
The/DT
directors/NNS
said/VBD
if/IN
Messrs./NNP
Drabinsky/NNP
and/CC
Gottlieb/NNP
mail/VBP
an/DT
offer/NN
to/TO
shareholders/NNS
by/IN
Nov./NNP
22/CD
,/,
it/PRP
will/MD
reimburse/VB
them/PRP
a/DT
maximum/NN
of/IN
C$/$
8.5/CD
million/CD
for/IN
expenses/NNS
related/VBN
to/TO
a/DT
bid/NN
./.
``/``
We/PRP
consider/VBP
that/IN
his/PRP$
bid/NN
is/VBZ
an/DT
acceptable/JJ
bid/NN
,/,
''/''
said/VBD
Sandra/NNP
Kolber/NNP
,/,
spokeswoman/NN
for/IN
the/DT
independent/JJ
directors/NNS
'/POS
committee/NN
appointed/VBN
last/JJ
May/NNP
to/TO
solicit/VB
and/CC
review/VB
bids/NNS
for/IN
the/DT
company/NN
in/IN
the/DT
wake/NN
of/IN
a/DT
dispute/NN
between/IN
Mr./NNP
Drabinsky/NNP
and/CC
Cineplex/NNP
's/POS
major/JJ
shareholder/NN
,/,
MCA/NNP
Inc/NNP
./.
MCA/NNP
and/CC
Cineplex/NNP
's/POS
other/JJ
major/JJ
shareholder/NN
,/,
Montreal-based/JJ
financier/NN
Charles/NNP
Bronfman/NNP
and/CC
his/PRP$
associates/NNS
,/,
have/VBP
agreed/VBN
to/TO
tender/VB
their/PRP$
holdings/NNS
to/TO
an/DT
offer/NN
by/IN
Mr./NNP
Drabinsky/NNP
unless/IN
a/DT
higher/JJR
offer/NN
is/VBZ
made/VBN
by/IN
another/DT
bidder/NN
./.
MCA/NNP
holds/VBZ
half/DT
of/IN
Cineplex/NNP
's/POS
equity/NN
and/CC
33/CD
%/NN
of/IN
its/PRP$
voting/NN
rights/NNS
through/IN
restricted/VBN
voting/NN
shares/NNS
,/,
while/IN
Bronfman/NNP
interests/NNS
hold/VBP
about/IN
24/CD
%/NN
of/IN
the/DT
company/NN
's/POS
equity/NN
./.
Ms./NNP
Kolber/NNP
said/VBD
the/DT
committee/NN
had/VBD
received/VBN
other/JJ
bids/NNS
./.
She/PRP
declined/VBD
to/TO
identify/VB
other/JJ
bidders/NNS
but/CC
said/VBD
Mr./NNP
Drabinsky/NNP
's/POS
offer/NN
``/``
is/VBZ
all/DT
cash/NN
,/,
and/CC
it/PRP
's/VBZ
for/IN
all/DT
of/IN
the/DT
company/NN
./.
''/''
Several/JJ
Cineplex/NNP
analysts/NNS
have/VBP
speculated/VBN
that/IN
outside/JJ
bids/NNS
received/VBN
by/IN
the/DT
committee/NN
were/VBD
either/RB
disappointingly/RB
low/JJ
or/CC
for/IN
only/JJ
part/NN
of/IN
the/DT
company/NN
./.
``/``
All/PDT
this/DT
has/VBZ
really/RB
established/VBN
is/VBZ
that/IN
MCA/NNP
and/CC
the/DT
Bronfmans/NNP
have/VBP
agreed/VBN
on/IN
a/DT
price/NN
at/IN
which/WDT
they/PRP
can/MD
be/VB
bought/VBN
out/IN
,/,
''/''
said/VBD
Jeffery/NNP
Logsdon/NNP
,/,
an/DT
analyst/NN
with/IN
Crowell/NNP
,/,
Weedon/NNP
in/IN
Los/NNP
Angeles/NNP
./.
``/``
If/IN
a/DT
bid/NN
materializes/VBZ
at/IN
that/DT
price/NN
,/,
shareholders/NNS
will/MD
have/VB
every/DT
reason/NN
to/TO
be/VB
glad/JJ
,/,
but/CC
the/DT
question/NN
of/IN
financing/NN
still/RB
remains/VBZ
./.
''/''
Last/JJ
April/NNP
,/,
Mr./NNP
Drabinsky/NNP
and/CC
a/DT
group/NN
of/IN
financial/JJ
backers/NNS
planned/VBD
to/TO
acquire/VB
up/IN
to/TO
30.2/CD
%/NN
of/IN
Cineplex/NNP
for/IN
C$/$
17.50/CD
a/DT
share/NN
from/IN
Bronfman/NNP
associates/NNS
./.
Mr./NNP
Drabinsky/NNP
,/,
who/WP
would/MD
have/VB
had/VBN
the/DT
right/NN
to/TO
vote/VB
those/DT
shares/NNS
for/IN
two/CD
years/NNS
,/,
said/VBD
the/DT
purchase/NN
,/,
subsequently/RB
rejected/VBN
by/IN
regulators/NNS
,/,
was/VBD
aimed/VBN
at/IN
consolidating/VBG
his/PRP$
control/NN
of/IN
the/DT
company/NN
./.
MCA/NNP
strongly/RB
opposed/VBD
the/DT
Drabinsky/NNP
group/NN
's/POS
move/NN
./.
The/DT
directors/NNS
did/VBD
n't/RB
indicate/VB
the/DT
source/NN
of/IN
financing/NN
for/IN
Mr./NNP
Drabinsky/NNP
's/POS
new/JJ
proposal/NN
,/,
but/CC
said/VBD
MCA/NNP
and/CC
the/DT
Bronfman/NNP
associates/NNS
agreed/VBD
in/IN
principle/NN
to/TO
buy/VB
for/IN
$/$
57/CD
million/CD
and/CC
then/RB
lease/VB
back/RB
to/TO
Cineplex/NNP
its/PRP$
18-screen/JJ
theater/NN
complex/NN
in/IN
Universal/NNP
City/NNP
,/,
Calif./NNP
,/,
if/IN
Mr./NNP
Drabinsky/NNP
succeeds/VBZ
in/IN
an/DT
offer/NN
./.
``/``
This/DT
is/VBZ
being/VBG
done/VBN
at/IN
the/DT
suggestion/NN
of/IN
{/(
Mr./NNP
Drabinsky/NNP
him/PRP
,/,
to/TO
facilitate/VB
his/PRP$
financing/VBG
arrangements/NNS
,/,
''/''
Ms./NNP
Kolber/NNP
said/VBD
./.
In/IN
addition/NN
,/,
the/DT
directors/NNS
said/VBD
if/IN
a/DT
bid/NN
by/IN
Mr./NNP
Drabinsky/NNP
is/VBZ
successful/JJ
,/,
Cineplex/NNP
expects/VBZ
Rank/NNP
Organisation/NNP
PLC/NNP
to/TO
acquire/VB
the/DT
51/CD
%/NN
of/IN
Cineplex/NNP
's/POS
Film/NNP
House/NNP
unit/NN
it/PRP
does/VBZ
n't/RB
own/VB
,/,
and/CC
provide/VB
Mr./NNP
Drabinsky/NNP
with/IN
additional/JJ
loan/NN
financing/NN
./.
Michael/NNP
Gifford/NNP
,/,
Rank/NNP
's/POS
chief/NN
executive/NN
,/,
said/VBD
the/DT
British/JJ
theater/NN
chain/NN
's/POS
total/JJ
involvement/NN
``/``
would/MD
n't/RB
exceed/VB
$/$
100/CD
million/CD
''/''
but/CC
declined/VBD
to/TO
give/VB
a/DT
breakdown/NN
between/IN
the/DT
loan/NN
financing/NN
and/CC
the/DT
proposed/VBN
Film/NNP
House/NNP
purchase/NN
./.
Cineplex/NNP
shareholders/NNS
responded/VBD
coolly/RB
to/TO
yesterday/NN
's/POS
announcement/NN
./.
In/IN
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Cineplex/NNP
closed/VBD
at/IN
$/$
11/CD
,/,
down/RB
25/CD
cents/NNS
,/,
with/IN
more/JJR
than/IN
a/DT
million/CD
shares/NNS
changing/VBG
hands/NNS
./.
On/IN
the/DT
Toronto/NNP
Stock/NNP
Exchange/NNP
,/,
Cineplex/NNP
closed/VBD
at/IN
C$/$
12.875/CD
,/,
off/RB
37.5/CD
Canadian/JJ
cents/NNS
,/,
well/RB
below/IN
the/DT
C$/$
16.40/CD
level/NN
./.
``/``
Where/WRB
's/VBZ
the/DT
bid/NN
?/.
''/''
asked/VBD
Pierre/NNP
Panet-Raymond/NNP
,/,
an/DT
analyst/NN
and/CC
broker/NN
with/IN
Toronto/NNP
securities/NNS
dealer/NN
McDermid/NNP
St./NNP
Lawrence/NNP
Ltd/NNP
./.
Mr./NNP
Panet-Raymond/NNP
said/VBD
he/PRP
does/VBZ
n't/RB
think/VB
Messrs./NNP
Drabinsky/NNP
and/CC
Gottlieb/NNP
are/VBP
``/``
anywhere/RB
close/JJ
''/''
to/TO
arranging/VBG
financing/NN
and/CC
that/IN
investors/NNS
will/MD
need/VB
a/DT
solid/JJ
offer/NN
before/IN
the/DT
stock/NN
begins/VBZ
to/TO
rise/VB
again/RB
./.
Mr./NNP
Drabinsky/NNP
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
Two/CD
West/JJ
German/JJ
chemical/NN
companies/NNS
announced/VBD
steps/NNS
that/WDT
apparently/RB
are/VBP
designed/VBN
to/TO
boost/VB
the/DT
chemical/NN
industry/NN
's/POS
standing/NN
among/IN
environmental/JJ
groups/NNS
and/CC
the/DT
general/JJ
public/NN
./.
Hoechst/NNP
AG/NNP
's/POS
Chairman/NNP
Wolfgang/NNP
Hilger/NNP
said/VBD
the/DT
company/NN
wants/VBZ
to/TO
have/VB
a/DT
substitute/JJ
product/NN
to/TO
completely/RB
replace/VB
ozone-damaging/JJ
chlorofluorocarbons/NNS
by/IN
1995/CD
./.
In/IN
April/NNP
,/,
Hoechst/NNP
,/,
the/DT
largest/JJS
producer/NN
of/IN
CFCs/NNPS
in/IN
West/NNP
Germany/NNP
,/,
said/VBD
it/PRP
wanted/VBD
to/TO
reduce/VB
production/NN
of/IN
the/DT
product/NN
by/IN
50/CD
%/NN
by/IN
1993/CD
./.
Mr./NNP
Hilger/NNP
said/VBD
Hoechst/NNP
will/MD
invest/VB
50/CD
million/CD
marks/NNS
$/$
27.2/CD
million/CD
a/DT
plant/NN
to/TO
make/VB
a/DT
substitute/NN
product/NN
it/PRP
has/VBZ
developed/VBN
that/IN
it/PRP
says/VBZ
is/VBZ
unchlorinated/VBN
./.
The/DT
company/NN
hopes/VBZ
the/DT
new/JJ
plant/NN
,/,
likely/RB
to/TO
be/VB
built/VBN
in/IN
Frankfurt/NNP
,/,
will/MD
be/VB
able/JJ
to/TO
produce/VB
10,000/CD
tons/NNS
a/DT
year/NN
./.
This/DT
year/NN
,/,
Hoechst/NNP
will/MD
produce/VB
about/IN
62,000/CD
tons/NNS
of/IN
CFCs/NNS
in/IN
factories/NNS
in/IN
Frankfurt/NNP
,/,
Spain/NNP
and/CC
Brazil/NNP
./.
Of/IN
Hoechst/NNP
's/POS
40.9/CD
billion/CD
marks/NNS
in/IN
group/NN
sales/NNS
in/IN
1988/CD
,/,
200/CD
million/CD
marks/NNS
came/VBD
from/IN
sales/NNS
of/IN
CFCs/NNS
./.
Also/RB
,/,
BASF/NNP
AG/NNP
,/,
another/DT
large/JJ
chemicals/NNS
company/NN
,/,
said/VBD
it/PRP
formed/VBD
a/DT
separate/JJ
division/NN
that/WDT
will/MD
study/VB
the/DT
environmental/JJ
impact/NN
of/IN
plastics/NNS
and/CC
will/MD
investigate/VB
all/DT
possibilities/NNS
of/IN
recycling/VBG
plastics/NNS
./.
George/NNP
L./NNP
Manzanec/NNP
,/,
53/CD
years/NNS
old/JJ
,/,
senior/JJ
vice/NN
president/NN
of/IN
Texas/NNP
Eastern/NNP
Corp./NNP
,/,
was/VBD
elected/VBN
a/DT
group/NN
vice/NN
president/NN
of/IN
this/DT
natural-gas-pipeline/JJ
concern/NN
./.
Mr./NNP
Manzanec/NNP
,/,
who/WP
succeeds/VBZ
retiring/VBG
Richard/NNP
C./NNP
Dixon/NNP
,/,
will/MD
be/VB
responsible/JJ
for/IN
gas/NN
supply/NN
,/,
regulatory/JJ
affairs/NNS
,/,
and/CC
marketing/NN
and/CC
transportation/NN
and/CC
exchange/NN
for/IN
Panhandle/NNP
Eastern/NNP
Pipe/NNP
Line/NNP
Co./NNP
,/,
Trunkline/NNP
Gas/NNP
Co./NNP
,/,
Texas/NNP
Eastern/NNP
Transmission/NNP
Corp./NNP
and/CC
Algonquin/NNP
Gas/NNP
Transmission/NNP
Co/NNP
./.
All/DT
of/IN
the/DT
companies/NNS
are/VBP
units/NNS
of/IN
Panhandle/NNP
Eastern/NNP
Corp./NNP
,/,
which/WDT
acquired/VBD
Texas/NNP
Eastern/NNP
Corp./NNP
earlier/RBR
this/DT
year/NN
./.
Adolph/NNP
Coors/NNP
Co./NNP
said/VBD
its/PRP$
Coors/NNP
Brewing/NNP
Co./NNP
unit/NN
will/MD
test/VB
market/VB
a/DT
new/JJ
line/NN
of/IN
bottled/JJ
water/NN
in/IN
the/DT
West/NN
beginning/VBG
early/JJ
next/JJ
year/NN
./.
The/DT
move/NN
,/,
which/WDT
was/VBD
expected/VBN
,/,
marks/VBZ
the/DT
first/JJ
time/NN
since/IN
Prohibition/NNP
that/IN
Coors/NNP
has/VBZ
sold/VBN
a/DT
non-alcoholic/JJ
beverage/NN
,/,
and/CC
marks/VBZ
the/DT
company/NN
's/POS
entry/NN
into/IN
a/DT
crowded/VBN
,/,
but/CC
fast-growing/JJ
market/NN
that/IN
generated/VBN
about/IN
$/$
2.2/CD
billion/CD
in/IN
sales/NNS
last/JJ
year/NN
./.
Coors/NNP
is/VBZ
hoping/VBG
to/TO
become/VB
one/CD
of/IN
the/DT
first/JJ
companies/NNS
to/TO
distribute/VB
bottled/JJ
water/NN
nationwide/JJ
./.
Perrier/NNP
,/,
sold/VBN
by/IN
Perrier/NNP
Group/NNP
of/IN
America/NNP
,/,
a/DT
unit/NN
of/IN
Source/NNP
Perrier/NNP
S.A./NNP
of/IN
Paris/NNP
,/,
and/CC
Evian/NNP
,/,
sold/VBN
by/IN
a/DT
U.S./NNP
unit/NN
BSN/NNP
of/IN
France/NNP
,/,
are/VBP
distributed/VBN
to/TO
urban/JJ
areas/NNS
nationally/RB
,/,
but/CC
are/VBP
less/RBR
available/JJ
in/IN
rural/JJ
communities/NNS
./.
Coors/NNP
,/,
with/IN
its/PRP$
large/JJ
beer-distribution/NN
network/NN
,/,
could/MD
penetrate/VB
more/JJR
markets/NNS
./.
The/DT
company/NN
said/VBD
the/DT
water/NN
will/MD
be/VB
called/VBN
Coors/NNP
Rocky/NNP
Mountain/NNP
Sparkling/NNP
Water/NNP
and/CC
will/MD
come/VB
from/IN
the/DT
same/JJ
mountain/NN
spring/NN
as/IN
water/NN
used/VBN
in/IN
Coors/NNP
beer/NN
./.
The/DT
company/NN
said/VBD
it/PRP
will/MD
sell/VB
the/DT
water/NN
plain/NN
and/CC
with/IN
lemon-lime/JJ
and/CC
cherry/JJ
flavors/NNS
and/CC
will/MD
package/VB
it/PRP
in/IN
28-ounce/JJ
bottles/NNS
and/CC
6.5/CD
ounce/NN
bottles/NNS
as/IN
part/NN
of/IN
six-packs/NNS
./.
The/DT
test/NN
markets/NNS
,/,
though/IN
not/RB
specified/VBN
,/,
will/MD
be/VB
in/IN
northern/JJ
California/NNP
,/,
Arizona/NNP
and/CC
Colorado/NNP
,/,
some/DT
of/IN
the/DT
hottest/JJS
bottled-water/NN
markets/NNS
./.
Some/DT
of/IN
America/NNP
's/POS
biggest/JJS
trading/VBG
partners/NNS
gave/VBD
a/DT
quick/JJ
thumbs-down/NN
to/TO
a/DT
U.S./NNP
proposal/NN
to/TO
liberalize/VB
world/NN
trade/NN
and/CC
reduce/VB
farm-product/NN
subsidies/NNS
./.
In/IN
Geneva/NNP
,/,
where/WRB
world/NN
trade/NN
talks/NNS
are/VBP
being/VBG
held/VBN
under/IN
the/DT
General/NNP
Agreement/NNP
on/IN
Tariffs/NNPS
and/CC
Trade/NNP
,/,
or/CC
GATT/NNP
,/,
the/DT
European/NNP
Community/NNP
called/VBD
the/DT
U.S./NNP
proposal/NN
``/``
a/DT
step/NN
backward/RB
./.
''/''
And/CC
Japan/NNP
's/POS
minister/NN
of/IN
agriculture/NN
,/,
forestry/NN
and/CC
fisheries/NNS
told/VBD
a/DT
committee/NN
of/IN
Japan/NNP
's/POS
parliament/NN
that/IN
Washington/NNP
's/POS
proposal/NN
was/VBD
impractical/JJ
and/CC
that/IN
Tokyo/NNP
would/MD
continue/VB
to/TO
heavily/RB
subsidize/VB
its/PRP$
rice/NN
farmers/NNS
./.
The/DT
U.S./NNP
,/,
in/IN
a/DT
far-reaching/JJ
plan/NN
submitted/VBN
to/TO
the/DT
Geneva/NNP
meeting/NN
Tuesday/NNP
,/,
proposed/VBD
curbing/VBG
price/NN
support/NN
subsidies/NNS
within/IN
10/CD
years/NNS
and/CC
eliminating/VBG
export/NN
subsidies/NNS
within/IN
five/CD
years/NNS
./.
U.S./NNP
officials/NNS
said/VBD
the/DT
plan/NN
was/VBD
flexible/JJ
,/,
and/CC
was/VBD
intended/VBN
as/IN
a/DT
pragmatic/JJ
approach/NN
for/IN
gradually/RB
removing/VBG
trade-distorting/JJ
subsidies/NNS
./.
But/CC
the/DT
EC/NNP
reacted/VBD
defiantly/RB
,/,
arguing/VBG
that/IN
the/DT
proposal/NN
's/POS
main/JJ
aim/NN
is/VBZ
to/TO
destroy/VB
the/DT
Common/NNP
Agricultural/NNP
Policy/NNP
,/,
the/DT
EC/NNP
's/POS
$/$
28/CD
billion-a-year/JJ
price/NN
support/NN
program/NN
./.
``/``
The/DT
American/JJ
proposal/NN
is/VBZ
not/RB
an/DT
adequate/JJ
basis/NN
for/IN
negotiation/NN
,/,
''/''
the/DT
EC/NNP
said/VBD
in/IN
a/DT
statement/NN
./.
EC/NNP
officials/NNS
say/VBP
they/PRP
are/VBP
irked/VBN
that/IN
the/DT
U.S./NNP
has/VBZ
set/VBN
a/DT
specific/JJ
timetable/NN
and/CC
is/VBZ
insisting/VBG
on/IN
the/DT
``/``
elimination/NN
''/''
of/IN
export/NN
subsides/NNS
,/,
not/RB
just/JJ
reduction/NN
./.
EC/NNP
Agriculture/NNP
Commissioner/NNP
Ray/NNP
MacSharry/NNP
said/VBD
the/DT
U.S./NNP
plan/NN
``/``
calls/VBZ
into/IN
question/NN
''/''
the/DT
agreement/NN
reached/VBN
by/IN
world/NN
negotiators/NNS
last/JJ
April/NNP
in/IN
Geneva/NNP
seeking/VBG
``/``
substantial/JJ
progressive/JJ
reductions/NNS
in/IN
agricultural/JJ
support/NN
and/CC
protection/NN
./.
''/''
U.S./NNP
Deputy/NNP
Trade/NNP
Representative/NNP
Jules/NNP
Katz/NNP
replied/VBD
that/IN
the/DT
proposal/NN
was/VBD
entirely/RB
consistent/JJ
with/IN
the/DT
April/NNP
accord/NN
./.
He/PRP
said/VBD
he/PRP
was/VBD
surprised/VBN
by/IN
the/DT
EC/NNP
's/POS
reaction/NN
,/,
calling/VBG
it/PRP
``/``
vehement/JJ
,/,
even/RB
frenetic/JJ
./.
''/''
The/DT
U.S./NNP
proposal/NN
also/RB
was/VBD
criticized/VBN
by/IN
food-importing/JJ
developing/VBG
countries/NNS
,/,
who/WP
said/VBD
that/IN
the/DT
U.S./NNP
made/VBD
no/DT
special/JJ
allowances/NNS
for/IN
poor/JJ
nations/NNS
./.
While/IN
many/JJ
experts/NNS
argue/VBP
that/IN
food-importing/JJ
nations/NNS
would/MD
eventually/RB
become/VB
self-sufficient/JJ
in/IN
a/DT
free-market/JJ
system/NN
,/,
the/DT
poorest/JJS
nations/NNS
are/VBP
likely/JJ
to/TO
need/VB
help/NN
in/IN
the/DT
meantime/NN
./.
Ambassador/NNP
Katz/NNP
said/VBD
the/DT
U.S./NNP
was/VBD
open/JJ
to/TO
discussing/VBG
particular/JJ
problems/NNS
of/IN
developing/VBG
countries/NNS
./.
The/DT
U.S./NNP
administration/NN
said/VBD
its/PRP$
plan/NN
would/MD
allow/VB
considerable/JJ
flexibility/NN
in/IN
determining/VBG
how/WRB
and/CC
when/WRB
the/DT
free-trade/JJ
goals/NNS
would/MD
be/VB
achieved/VBN
./.
The/DT
U.S./NNP
argues/VBZ
that/IN
its/PRP$
plan/NN
would/MD
ease/VB
the/DT
transition/NN
to/TO
freer/JJR
agriculture/NN
trade/NN
by/IN
converting/VBG
certain/JJ
non-tariff/JJ
barriers/NNS
into/IN
tariffs/NNS
that/WDT
,/,
together/RB
with/IN
existing/VBG
tariffs/NNS
,/,
then/RB
would/MD
be/VB
phased/VBN
out/IN
over/IN
10/CD
years/NNS
./.
But/CC
the/DT
EC/NNP
is/VBZ
strongly/RB
opposed/VBN
to/TO
converting/VBG
agricultural/JJ
supports/NNS
into/IN
tariffs/NNS
./.
The/DT
new/JJ
U.S./NNP
package/NN
also/RB
says/VBZ
countries/NNS
could/MD
temporarily/RB
raise/VB
tariffs/NNS
on/IN
certain/JJ
products/NNS
if/IN
they/PRP
experience/VBP
an/DT
unusually/RB
heavy/JJ
volume/NN
of/IN
imports/NNS
./.
It/PRP
would/MD
establish/VB
procedures/NNS
to/TO
prevent/VB
countries/NNS
from/IN
using/VBG
health/NN
and/CC
sanitation/NN
rules/NNS
to/TO
impede/VB
trade/NN
arbitrarily/RB
./.
Seeking/VBG
to/TO
allay/VB
European/JJ
concerns/NNS
,/,
U.S./NNP
Agriculture/NNP
Secretary/NNP
Clayton/NNP
Yeutter/NNP
said/VBD
in/IN
Washington/NNP
that/IN
the/DT
new/JJ
U.S./NNP
plan/NN
would/MD
n't/RB
``/``
put/VB
farmers/NNS
out/IN
of/IN
business/NN
''/''
but/CC
would/MD
encourage/VB
them/PRP
to/TO
``/``
grow/VB
what/WP
the/DT
markets/NNS
desire/VBP
instead/RB
of/IN
what/WP
the/DT
government/NN
wants/VBZ
./.
''/''
The/DT
EC/NNP
,/,
with/IN
a/DT
population/NN
of/IN
320/CD
million/CD
,/,
has/VBZ
8.5/CD
million/CD
farmers/NNS
,/,
while/IN
the/DT
U.S./NNP
,/,
with/IN
a/DT
population/NN
of/IN
about/IN
245/CD
million/CD
,/,
has/VBZ
only/RB
two/CD
million/CD
farmers/NNS
./.
Japan/NNP
's/POS
objections/NNS
to/TO
the/DT
U.S./NNP
plan/NN
center/VBP
around/IN
its/PRP$
desire/NN
to/TO
stay/VB
self-sufficient/JJ
in/IN
rice/NN
,/,
a/DT
staple/NN
food/NN
,/,
even/RB
though/IN
foreign/JJ
producers/NNS
are/VBP
far/RB
more/RBR
efficient/JJ
./.
Bell/NNP
Atlantic/NNP
Corp./NNP
said/VBD
it/PRP
agreed/VBD
definitively/RB
to/TO
acquire/VB
one/CD
of/IN
Control/NNP
Data/NNP
Corp./NNP
's/POS
computer-maintenance/NN
businesses/NNS
./.
Terms/NNS
of/IN
the/DT
accord/NN
were/VBD
n't/RB
disclosed/VBN
./.
Control/NNP
Data/NNP
's/POS
third-party/JJ
maintenance/NN
unit/NN
services/VBZ
products/NNS
primarily/RB
made/VBN
by/IN
Digital/NNP
Equipment/NNP
Corp./NNP
and/CC
International/NNP
Business/NNP
Machines/NNPS
Corp/NNP
./.
The/DT
unit/NN
has/VBZ
6,000/CD
customers/NNS
and/CC
,/,
according/VBG
to/TO
one/CD
analyst/NN
,/,
had/VBD
1988/CD
revenue/NN
of/IN
about/IN
$/$
85/CD
million/CD
./.
Under/IN
the/DT
agreement/NN
,/,
which/WDT
had/VBD
been/VBN
widely/RB
expected/VBN
,/,
Bell/NNP
Atlantic/NNP
would/MD
be/VB
buying/VBG
Control/NNP
Data/NNP
's/POS
customer/NN
base/NN
and/CC
its/PRP$
approximately/RB
100/CD
U.S./NNP
maintenance/NN
facilities/NNS
in/IN
about/IN
33/CD
cities/NNS
./.
However/RB
,/,
Control/NNP
Data/NNP
would/MD
continue/VB
to/TO
provide/VB
maintenance/NN
services/NNS
for/IN
customers/NNS
of/IN
its/PRP$
Cyber/NNP
product/NN
line/NN
./.
The/DT
unit/NN
represents/VBZ
a/DT
small/JJ
portion/NN
of/IN
Minneapolis-based/JJ
Control/NNP
Data/NNP
's/POS
overall/JJ
computer-servicing/NN
business/NN
,/,
which/WDT
last/JJ
year/NN
posted/VBD
sales/NNS
of/IN
about/IN
$/$
400/CD
million/CD
./.
Earlier/RBR
this/DT

year/NN
,/,
the/DT
company/NN
sold/VBD
a/DT
similar/JJ
unit/NN
in/IN
Europe/NNP
for/IN
about/IN
$/$
25/CD
million/CD
./.
Lawrence/NNP
Perlman/NNP
,/,
Control/NNP
Data/NNP
's/POS
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
,/,
said/VBD
the/DT
maintenance/NN
business/NN
no/RB
longer/JJR
fits/VBZ
into/IN
the/DT
company/NN
's/POS
``/``
strategy/NN
to/TO
be/VB
a/DT
data/NNS
solutions/NNS
company/NN
./.
''/''
Thomas/NNP
Vassiliades/NNP
,/,
president/NN
of/IN
Bell/NNP
Atlantic/NNP
's/POS
customer/NN
services/NNS
division/NN
,/,
said/VBD
the/DT
acquisition/NN
would/MD
give/VB
the/DT
company/NN
's/POS
Sorbus/NNP
computer-maintenance/NN
unit/NN
added/JJ
expertise/NN
in/IN
``/``
the/DT
increasingly/RB
sophisticated/JJ
workstation/NN
and/CC
high-end/JJ
mainframe/NN
technologies/NNS
./.
''/''
Two/CD
recent/JJ
decisions/NNS
by/IN
federal/JJ
courts/NNS
cast/VBD
judges/NNS
in/IN
the/DT
odd/JJ
role/NN
of/IN
telling/VBG
authors/NNS
how/WRB
they/PRP
should/MD
write/VB
history/NN
and/CC
biography/NN
./.
These/DT
decisions/NNS
deserve/VBP
more/JJR
attention/NN
than/IN
they/PRP
have/VBP
received/VBN
from/IN
scholars/NNS
,/,
and/CC
from/IN
journalists/NNS
as/RB
well/RB
./.
Russell/NNP
Miller/NNP
's/POS
``/``
Bare-Faced/NNP
Messiah/NNP
:/:
The/NNP
True/NNP
Story/NNP
of/IN
L./NNP
Ron/NNP
Hubbard/NNP
''/''
is/VBZ
a/DT
biography/NN
of/IN
the/DT
founder/NN
of/IN
the/DT
Church/NNP
of/IN
Scientology/NNP
./.
Mr./NNP
Hubbard/NNP
,/,
who/WP
died/VBD
in/IN
1986/CD
,/,
bequeathed/VBD
the/DT
copyrights/NNS
on/IN
his/PRP$
writings/NNS
to/TO
his/PRP$
church/NN
,/,
which/WDT
licensed/VBD
them/PRP
to/TO
New/NNP
Era/NNP
Publications/NNP
,/,
a/DT
Danish/JJ
corporation/NN
./.
In/IN
1988/CD
New/NNP
Era/NNP
sought/VBD
a/DT
permanent/JJ
injunction/NN
to/TO
restrain/VB
Henry/NNP
Holt/NNP
&/CC
Co./NNP
from/IN
publishing/VBG
``/``
Bare-Faced/NNP
Messiah/NNP
''/''
on/IN
the/DT
ground/NN
that/IN
Mr./NNP
Miller/NNP
's/POS
quotations/NNS
from/IN
Mr./NNP
Hubbard/NNP
infringed/VBD
the/DT
copyrights/NNS
./.
The/DT
publisher/NN
argued/VBD
in/IN
response/NN
that/IN
the/DT
``/``
fair/JJ
use/NN
''/''
statute/NN
permits/VBZ
quotation/NN
``/``
for/IN
purposes/NNS
such/JJ
as/IN
criticism/NN
,/,
comment/NN
,/,
news/NN
reporting/NN
,/,
teaching/NN
,/,
.../:
scholarship/NN
,/,
or/CC
research/NN
./.
''/''
District/NNP
Court/NNP
Judge/NNP
Pierre/NNP
Leval/NNP
denied/VBD
the/DT
injunction/NN
on/IN
the/DT
ground/NN
that/IN
New/NNP
Era/NNP
had/VBD
failed/VBN
to/TO
make/VB
its/PRP$
claim/NN
within/IN
a/DT
reasonable/JJ
time/NN
--/:
the/DT
doctrine/NN
lawyers/NNS
call/VBP
``/``
laches/NN
./.
''/''
As/IN
for/IN
the/DT
merits/NNS
,/,
Judge/NNP
Leval/NNP
said/VBD
that/IN
Mr./NNP
Miller/NNP
had/VBD
written/VBN
``/``
a/DT
serious/JJ
book/NN
of/IN
responsible/JJ
historical/JJ
criticism/NN
./.
''/''
Verbatim/JJ
quotation/NN
,/,
the/DT
judge/NN
believed/VBD
,/,
was/VBD
justified/VBN
in/IN
order/NN
to/TO
prove/VB
points/NNS
the/DT
author/NN
had/VBD
asserted/VBN
about/IN
Mr./NNP
Hubbard/NNP
--/:
mendacity/NN
,/,
bigotry/NN
,/,
paranoia/NN
and/CC
other/JJ
unlovely/JJ
traits/NNS
that/WDT
could/MD
not/RB
be/VB
persuasively/RB
demonstrated/VBN
without/IN
use/NN
of/IN
Mr./NNP
Hubbard/NNP
's/POS
own/JJ
words/NNS
./.
``/``
The/DT
biographer\/critic/NN
,/,
''/''
Judge/NNP
Leval/NNP
wrote/VBD
,/,
``/``
should/MD
not/RB
be/VB
required/VBN
simply/RB
to/TO
express/VB
.../:
conclusions/NNS
without/IN
defending/VBG
them/PRP
by/IN
example/NN
./.
''/''
In/IN
such/JJ
circumstances/NNS
,/,
free-speech/NN
interests/NNS
outweighed/VBD
the/DT
interests/NNS
of/IN
the/DT
copyright/NN
owner/NN
./.
But/CC
Judge/NNP
Leval/NNP
felt/VBD
constrained/VBN
by/IN
an/DT
earlier/JJR
decision/NN
of/IN
the/DT
Second/NNP
Circuit/NNP
Court/NNP
forbidding/VBG
a/DT
biographer/NN
of/IN
J.D./NNP
Salinger/NNP
to/TO
quote/VB
from/IN
Mr./NNP
Salinger/NNP
's/POS
personal/JJ
letters/NNS
./.
He/PRP
distinguished/VBD
the/DT
two/CD
cases/NNS
:/:
In/IN
Salinger/NNP
,/,
Judge/NNP
Leval/NNP
noted/VBD
,/,
the/DT
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the/DT
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enlivening/VBG
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biography/NN
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of/IN
proving/VBG
points/NNS
about/IN
the/DT
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./.
Still/RB
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Salinger/NNP
decision/NN
created/VBD
a/DT
strong/JJ
presumption/NN
against/IN
fair/JJ
use/NN
of/IN
unpublished/JJ
materials/NNS
./.
Judge/NNP
Leval/NNP
reluctantly/RB
concluded/VBD
that/IN
a/DT
few/JJ
of/IN
Mr./NNP
Miller/NNP
's/POS
quotations/NNS
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Mr./NNP
Hubbard/NNP
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unpublished/JJ
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,/,
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historical/JJ
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,/,
failed/VBD
the/DT
fair-use/JJ
test/NN
and/CC
therefore/RB
infringed/VBD
copyright/NN
./.
But/CC
the/DT
proper/JJ
remedy/NN
,/,
Judge/NNP
Leval/NNP
said/VBD
,/,
lay/VBD
in/IN
a/DT
suit/NN
for/IN
damages/NNS
,/,
not/RB
in/IN
an/DT
injunction/NN
./.
The/DT
case/NN
went/VBD
on/IN
appeal/NN
to/TO
the/DT
Second/NNP
Circuit/NNP
./.
In/IN
a/DT
decision/NN
in/IN
April/NNP
of/IN
this/DT
year/NN
,/,
Judge/NNP
Roger/NNP
Miner/NNP
,/,
joined/VBN
by/IN
Judge/NNP
Frank/NNP
Altimari/NNP
,/,
agreed/VBD
on/IN
denying/VBG
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injunction/NN
and/CC
did/VBD
not/RB
doubt/VB
that/IN
``/``
Bare-Faced/NNP
Messiah/NNP
''/''
was/VBD
a/DT
serious/JJ
work/NN
but/CC
rejected/VBD
Judge/NNP
Leval/NNP
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the/DT
public/JJ
interest/NN
in/IN
scholarship/NN
could/MD
outweigh/VB
the/DT
sanctity/NN
of/IN
copyright/NN
./.
``/``
We/PRP
conclude/VBP
,/,
''/''
the/DT
two/CD
judges/NNS
wrote/VBD
,/,
``/``
that/IN
laches/NN
is/VBZ
the/DT
sole/JJ
bar/NN
to/TO
the/DT
issuance/NN
of/IN
an/DT
injunction/NN
./.
''/''
Had/VBD
the/DT
suit/NN
been/VBN
filed/VBN
in/IN
time/NN
,/,
they/PRP
said/VBD
,/,
``/``
Bare-Faced/NNP
Messiah/NNP
''/''
would/MD
have/VB
been/VBN
suppressed/VBN
./.
This/DT
was/VBD
too/RB
much/JJ
for/IN
James/NNP
Oakes/NNP
,/,
the/DT
court/NN
's/POS
chief/NN
judge/NN
./.
In/IN
a/DT
powerful/JJ
separate/JJ
opinion/NN
,/,
Judge/NNP
Oakes/NNP
further/RB
distinguished/VBD
the/DT
Salinger/NNP
case/NN
by/IN
pointing/VBG
out/IN
that/IN
a/DT
living/VBG
person/NN
,/,
like/IN
Mr./NNP
Salinger/NNP
,/,
had/VBD
privacy/NN
rights/NNS
that/WDT
did/VBD
not/RB
apply/VB
to/TO
a/DT
dead/JJ
man/NN
,/,
like/IN
Mr./NNP
Hubbard/NNP
./.
``/``
I/PRP
thought/VBD
that/IN
Salinger/NNP
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being/VBG
taken/VBN
in/IN
another/DT
factual/JJ
context/NN
come/VBN
back/RB
to/TO
haunt/VB
us/PRP
./.
This/DT
case/NN
realizes/VBZ
that/DT
concern/NN
./.
''/''
Decisions/NNS
by/IN
the/DT
Second/NNP
Circuit/NNP
itself/PRP
,/,
Judge/NNP
Oakes/NNP
continued/VBD
,/,
had/VBD
recognized/VBN
that/IN
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interest/NN
in/IN
the/DT
subject/JJ
matter/NN
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the/DT
indispensability/NN
in/IN
particular/JJ
cases/NNS
of/IN
verbatim/JJ
quotations/NNS
are/VBP
vital/JJ
components/NNS
of/IN
fair/JJ
use/NN
./.
And/CC
the/DT
injunction/NN
Judges/NNP
Miner/NNP
and/CC
Altimari/NNP
would/MD
so/RB
readily/RB
have/VB
granted/VBN
had/VBD
New/NNP
Era/NNP
sued/VBN
in/IN
time/NN
?/.
Suppression/NN
of/IN
the/DT
book/NN
,/,
Judge/NNP
Oakes/NNP
observed/VBD
,/,
would/MD
operate/VB
as/IN
a/DT
prior/JJ
restraint/NN
and/CC
thus/RB
involve/VB
the/DT
First/NNP
Amendment/NNP
./.
Moreover/RB
,/,
and/CC
here/RB
Judge/NNP
Oakes/NNP
went/VBD
to/TO
the/DT
heart/NN
of/IN
the/DT
question/NN
,/,
``/``
Responsible/JJ
biographers/NNS
and/CC
historians/NNS
constantly/RB
use/VBP
primary/JJ
sources/NNS
,/,
letters/NNS
,/,
diaries/NNS
,/,
and/CC
memoranda/NNS
./.
Indeed/RB
,/,
it/PRP
would/MD
be/VB
irresponsible/JJ
to/TO
ignore/VB
such/JJ
sources/NNS
of/IN
information/NN
./.
''/''
Now/RB
,/,
scholars/NNS
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fulfilling/VBG
their/PRP$
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do/VBP
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to/TO
invade/VB
every/DT
collection/NN
of/IN
papers/NNS
that/WDT
bears/VBZ
upon/IN
their/PRP$
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investigation/NN
./.
And/CC
of/IN
course/NN
they/PRP
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can/MD
impose/VB
restrictions/NNS
on/IN
the/DT
use/NN
of/IN
their/PRP$
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,/,
whether/IN
in/IN
their/PRP$
own/JJ
possession/NN
or/CC
as/RB
donated/VBN
or/CC
sold/VBN
to/TO
libraries/NNS
./.
But/CC
in/IN
the/DT
``/``
Bare-Faced/NNP
Messiah/NNP
''/''
case/NN
the/DT
author/NN
found/VBD
most/JJS
of/IN
his/PRP$
material/NN
in/IN
court/NN
records/NNS
or/CC
via/IN
the/DT
Freedom/NNP
of/IN
Information/NNP
Act/NNP
./.
And/CC
when/WRB
responsible/JJ
scholars/NNS
gain/VBP
legitimate/JJ
access/NN
to/TO
unpublished/JJ
materials/NNS
,/,
copyright/NN
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permitted/VBN
to/TO
deny/VB
them/PRP
use/NN
of/IN
quotations/NNS
that/WDT
help/VBP
to/TO
establish/VB
historical/JJ
points/NNS
./.
Judges/NNPS
Oakes/NNP
and/CC
Leval/NNP
understand/VBP
the/DT
requirements/NNS
of/IN
historical/JJ
scholarship/NN
./.
Judges/NNPS
Miner/NNP
and/CC
Altimari/NNP
do/VBP
not/RB
appear/VB
to/TO
have/VB
a/DT
clue/NN
./.
Yet/RB
at/IN
the/DT
moment/NN
they/PRP
are/VBP
the/DT
judges/NNS
who/WP
are/VBP
making/VBG
the/DT
law/NN
./.
As/IN
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,/,
the/DT
Salinger/NNP
ruling/NN
,/,
torn/VBN
from/IN
context/NN
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broadly/RB
construed/VBN
,/,
is/VBZ
controlling/VBG
./.
If/IN
an/DT
author/NN
quotes/VBZ
``/``
more/JJR
than/IN
minimal/JJ
amounts/NNS
''/''
of/IN
unpublished/JJ
copyrighted/VBN
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,/,
as/IN
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decision/NN
had/VBD
it/PRP
,/,
``/``
he/PRP
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be/VB
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./.
''/''
The/DT
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not/RB
defined/VBN
``/``
minimal/JJ
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,/,
''/''
but/CC
publishers/NNS
,/,
I/PRP
understand/VBP
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take/VBP
it/PRP
to/TO
mean/VB
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50/CD
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./.
The/DT
``/``
Bare-Faced/NNP
Messiah/NNP
''/''
decision/NN
strikes/VBZ
a/DT
blow/NN
against/IN
the/DT
whole/JJ
historical/JJ
enterprise/NN
./.
A/DT
second/JJ
decision/NN
,/,
handed/VBN
down/IN
in/IN
August/NNP
by/IN
the/DT
Court/NNP
of/IN
Appeals/NNPS
for/IN
the/DT
Ninth/NNP
Circuit/NNP
,/,
is/VBZ
another/DT
blow/NN
against/IN
scholarship/NN
./.
Janet/NNP
Malcolm/NNP
,/,
a/DT
professional/JJ
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psychiatric/JJ
matters/NNS
,/,
wrote/VBD
a/DT
series/NN
of/IN
articles/NNS
for/IN
the/DT
New/NNP
Yorker/NNP
,/,
later/RB
published/VBN
in/IN
book/NN
form/NN
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Knopf/NNP
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the/DT
title/NN
``/``
In/NNP
the/DT
Freud/NNP
Archives/NNPS
./.
''/''
The/DT
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were/VBD
largely/RB
based/VBN
on/IN
interviews/NNS
Ms./NNP
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Jeffrey/NNP
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served/VBN
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projects/NNS
director/NN
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the/DT
Freud/NNP
Archives/NNPS
./.
Mr./NNP
Masson/NNP
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libel/NN
suit/NN
against/IN
Ms./NNP
Malcolm/NNP
,/,
the/DT
New/NNP
Yorker/NNP
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Knopf/NNP
./.
As/IN
a/DT
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,/,
Mr./NNP
Masson/NNP
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and/CC
,/,
as/IN
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of/IN
malice/NN
,/,
Mr./NNP
Masson/NNP
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ascribed/VBN
to/TO
him/PRP
by/IN
Ms./NNP
Malcolm/NNP
were/VBD
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fabricated/VBN
./.
The/DT
quotes/NNS
could/MD
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found/VBN
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the/DT
tapes/NNS
,/,
and/CC
the/DT
two/CD
judges/NNS
who/WP
decided/VBD
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for/IN
Ms./NNP
Malcolm/NNP
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her/PRP$
publishers/NNS
conceded/VBD
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,/,
for/IN
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of/IN
their/PRP$
decision/NN
,/,
``/``
we/PRP
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./.
''/''
For/IN
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historians/NNS
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sufficient/JJ
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Malcolm/NNP
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./.
But/CC
Judge/NNP
Arthur/NNP
Alarcon/NNP
,/,
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by/IN
Judge/NNP
Cynthia/NNP
Holcomb/NNP
Hall/NNP
,/,
took/VBD
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rational/JJ
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./.
In/IN
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Judge/NNP
Alex/NNP
Kozinski/NNP
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purged/VBN
of/IN
``/``
uh/UH
''/''
and/CC
``/``
you/PRP
know/VBP
''/''
and/CC
grammatical/JJ
error/NN
./.
While/IN
judges/NNS
have/VBP
an/DT
obligation/NN
under/IN
the/DT
First/NNP
Amendment/NNP
to/TO
safeguard/VB
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the/DT
press/NN
,/,
``/``
the/DT
right/NN
to/TO
deliberately/RB
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is/VBZ
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,/,
in/IN
my/PRP$
view/NN
,/,
a/DT
concomitant/NN
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a/DT
free/JJ
press/NN
./.
''/''
Ms./NNP
Malcolm/NNP
,/,
for/IN
example/NN
,/,
wrote/VBD
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Mr./NNP
Masson/NNP
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himself/PRP
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``/``
the/DT
greatest/JJS
analyst/NN
who/WP
ever/RB
lived/VBD
./.
''/''
No/DT
such/JJ
statement/NN
appears/VBZ
on/IN
the/DT
tapes/NNS
./.
The/DT
majority/NN
cited/VBD
Mr./NNP
Masson/NNP
's/POS
remark/NN
``/``
It/PRP
's/VBZ
me/PRP
alone/RB
.../:
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of/IN
the/DT
analytic/JJ
world/NN
''/''
as/IN
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for/IN
the/DT
Malcolm/NNP
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./.
But/CC
,/,
as/IN
Judge/NNP
Kozinski/NNP
noted/VBD
,/,
the/DT
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shows/VBZ
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Mr./NNP
Masson/NNP
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``/``
me/PRP
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''/''
remark/NN
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to/TO
his/PRP$
alleged/JJ
pre-eminence/NN
in/IN
his/PRP$
profession/NN
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the/DT
fact/NN
that/IN
his/PRP$
position/NN
on/IN
a/DT
particular/JJ
issue/NN
was/VBD
not/RB
shared/VBN
by/IN
anyone/NN
else/RB
./.
Ms./NNP
Malcolm/NNP
had/VBD
Mr./NNP
Masson/NNP
describing/VBG
himself/PRP
as/IN
``/``
an/DT
intellectual/JJ
gigolo/NN
./.
''/''
Again/RB
,/,
no/DT
such/JJ
statement/NN
appears/VBZ
on/IN
the/DT
tapes/NNS
./.
The/DT
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decision/NN
contended/VBD
that/IN
the/DT
phrase/NN
was/VBD
a/DT
rational/JJ
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of/IN
Mr./NNP
Masson/NNP
's/POS
description/NN
of/IN
himself/PRP
as/IN
a/DT
``/``
private/JJ
asset/NN
but/CC
a/DT
public/JJ
liability/NN
''/''
to/TO
Anna/NNP
Freud/NNP
and/CC
that/IN
in/IN
any/DT
case/NN
it/PRP
was/VBD
not/RB
defamatory/JJ
./.
Judge/NNP
Kozinski/NNP
found/VBD
the/DT
derivation/NN
entirely/RB
strained/VBN
and/CC
writes/VBZ
that/IN
``/``
for/IN
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refer/VB
to/TO
himself/PRP
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intellectual/JJ
gigolo/NN
is/VBZ
.../:
a/DT
devastating/JJ
admission/NN
of/IN
professional/JJ
dishonesty/NN
./.
''/''
These/DT
were/VBD
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two/CD
of/IN
a/DT
series/NN
of/IN
fabrications/NNS
that/WDT
had/VBD
,/,
in/IN
Judge/NNP
Kozinski/NNP
's/POS
words/NNS
,/,
the/DT
cumulative/JJ
effect/NN
of/IN
making/VBG
Mr./NNP
Masson/NNP
``/``
appear/VB
more/RBR
arrogant/JJ
,/,
less/RBR
sensitive/JJ
,/,
shallower/JJR
,/,
more/RBR
self-aggrandizing/JJ
,/,
and/CC
less/RBR
in/IN
touch/NN
with/IN
reality/NN
than/IN
he/PRP
appears/VBZ
from/IN
his/PRP$
own/JJ
statements/NNS
./.
''/''
As/IN
Robert/NNP
Coles/NNP
wrote/VBD
in/IN
a/DT
review/NN
of/IN
Ms./NNP
Malcolm/NNP
's/POS
book/NN
,/,
Mr./NNP
Masson/NNP
emerges/VBZ
``/``
as/IN
a/DT
grandiose/JJ
egotist/NN
.../:
and/CC
,/,
in/IN
the/DT
end/NN
,/,
a/DT
self-destructive/JJ
fool/NN
./.
But/CC
it/PRP
is/VBZ
not/RB
Janet/NNP
Malcolm/NNP
who/WP
calls/VBZ
him/PRP
such/JJ
:/:
his/PRP$
own/JJ
words/NNS
reveal/VBP
this/DT
psychological/JJ
profile/NN
./.
''/''
We/PRP
now/RB
know/VBP
that/IN
the/DT
words/NNS
were/VBD
not/RB
always/RB
his/PRP$
own/JJ
./.
``/``
There/EX
is/VBZ
one/CD
sacred/JJ
rule/NN
of/IN
journalism/NN
,/,
''/''
John/NNP
Hersey/NNP
has/VBZ
said/VBN
./.
``/``
The/DT
writer/NN
must/MD
not/RB
invent/VB
./.
''/''
Should/MD
the/DT
green/JJ
light/NN
Judges/NNPS
Alarcon/NNP
and/CC
Hall/NNP
have/VB
given/VBN
to/TO
the/DT
fabrication/NN
of/IN
quotations/NNS
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standard/JJ
practice/NN
,/,
it/PRP
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reduce/VB
the/DT
value/NN
of/IN
journalism/NN
for/IN
historians/NNS
--/:
and/CC
for/IN
citizens/NNS
./.
As/IN
Judge/NNP
Kozinski/NNP
put/VBD
it/PRP
:/:
``/``
To/TO
invoke/VB
the/DT
right/NN
to/TO
deliberately/RB
distort/VB
what/WP
someone/NN
else/RB
has/VBZ
said/VBN
is/VBZ
to/TO
assert/VB
the/DT
right/NN
to/TO
lie/VB
in/IN
print/NN
.../:
./.
Masson/NNP
has/VBZ
lost/VBN
his/PRP$
case/NN
,/,
but/CC
the/DT
defendants/NNS
,/,
and/CC
the/DT
profession/NN
to/TO
which/WDT
they/PRP
belong/VBP
,/,
have/VBP
lost/VBN
far/RB
more/RBR
./.
''/''
The/DT
historical/JJ
profession/NN
will/MD
survive/VB
these/DT
decisions/NNS
./.
Perhaps/RB
in/IN
time/NN
the/DT
Supreme/NNP
Court/NNP
will/MD
correct/VB
them/PRP
./.
But/CC
writing/VBG
history/NN
is/VBZ
tough/JJ
enough/RB
without/IN
judges/NNS
gratuitously/RB
throwing/VBG
obstacles/NNS
in/IN
the/DT
scholar/NN
's/POS
path/NN
./.
Mr./NNP
Schlesinger/NNP
is/VBZ
Albert/NNP
Schweitzer/NNP
professor/NN
of/IN
the/DT
humanities/NNS
at/IN
the/DT
City/NNP
University/NNP
of/IN
New/NNP
York/NNP
and/CC
a/DT
winner/NN
of/IN
Pulitzer/NNP
Prizes/NNPS
in/IN
history/NN
and/CC
biography/NN
./.
Hale/NNP
Milgrim/NNP
,/,
41/CD
years/NNS
old/JJ
,/,
senior/JJ
vice/NN
president/NN
,/,
marketing/NN
at/IN
Elecktra/NNP
Entertainment/NNP
Inc./NNP
,/,
was/VBD
named/VBN
president/NN
of/IN
Capitol/NNP
Records/NNPS
Inc./NNP
,/,
a/DT
unit/NN
of/IN
this/DT
entertainment/NN
concern/NN
./.
Mr./NNP
Milgrim/NNP
succeeds/VBZ
David/NNP
Berman/NNP
,/,
who/WP
resigned/VBD
last/JJ
month/NN
./.
Legal/JJ
controversies/NNS
in/IN
America/NNP
have/VBP
a/DT
way/NN
of/IN
assuming/VBG
a/DT
symbolic/JJ
significance/NN
far/RB
exceeding/VBG
what/WP
is/VBZ
involved/VBN
in/IN
the/DT
particular/JJ
case/NN
./.
They/PRP
speak/VBP
volumes/NNS
about/IN
the/DT
state/NN
of/IN
our/PRP$
society/NN
at/IN
a/DT
given/VBN
moment/NN
./.
It/PRP
has/VBZ
always/RB
been/VBN
so/RB
./.
In/IN
the/DT
1920s/CD
,/,
a/DT
young/JJ
schoolteacher/NN
,/,
John/NNP
T./NNP
Scopes/NNP
,/,
volunteered/VBD
to/TO
be/VB
a/DT
guinea/NN
pig/NN
in/IN
a/DT
test/NN
case/NN
sponsored/VBN
by/IN
the/DT
American/NNP
Civil/NNP
Liberties/NNP
Union/NNP
to/TO
challenge/VB
a/DT
ban/NN
on/IN
the/DT
teaching/NN
of/IN
evolution/NN
imposed/VBN
by/IN
the/DT
Tennessee/NNP
Legislature/NNP
./.
The/DT
result/NN
was/VBD
a/DT
world-famous/JJ
trial/NN
exposing/VBG
profound/JJ
cultural/JJ
conflicts/NNS
in/IN
American/JJ
life/NN
between/IN
the/DT
``/``
smart/JJ
set/NN
,/,
''/''
whose/WP$
spokesman/NN
was/VBD
H.L./NNP
Mencken/NNP
,/,
and/CC
the/DT
religious/JJ
fundamentalists/NNS
,/,
whom/WP
Mencken/NNP
derided/VBD
as/IN
benighted/JJ
primitives/NNS
./.
Few/JJ
now/RB
recall/VBP
the/DT
actual/JJ
outcome/NN
:/:
Scopes/NNP
was/VBD
convicted/VBN
and/CC
fined/VBN
$/$
100/CD
,/,
and/CC
his/PRP$
conviction/NN
was/VBD
reversed/VBN
on/IN
appeal/NN
because/IN
the/DT
fine/NN
was/VBD
excessive/JJ
under/IN
Tennessee/NNP
law/NN
./.
So/IN
it/PRP
was/VBD
with/IN
the/DT
Hiss/NNP
case/NN
a/DT
generation/NN
later/RB
,/,
when/WRB
Alger/NNP
Hiss/NNP
became/VBD
a/DT
lightning/NN
rod/NN
for/IN
the/DT
anxieties/NNS
of/IN
the/DT
Cold/NNP
War/NNP
and/CC
conflicting/VBG
attitudes/NNS
toward/IN
the/DT
New/NNP
Deal/NNP
he/PRP
had/VBD
served/VBN
./.
His/PRP$
trials/NNS
aroused/VBD
public/JJ
passions/NNS
out/IN
of/IN
all/DT
proportion/NN
to/TO
the/DT
rather/RB
banal/JJ
secrets/NNS
he/PRP
allegedly/RB
had/VBD
passed/VBN
to/TO
Soviet/JJ
intelligence/NN
./.
And/CC
so/IN
it/PRP
seems/VBZ
to/TO
be/VB
with/IN
the/DT
case/NN
of/IN
Elizabeth/NNP
Morgan/NNP
,/,
the/DT
Washington/NNP
,/,
D.C./NNP
,/,
plastic/NN
surgeon/NN
jailed/VBN
in/IN
a/DT
child/NN
custody/NN
case/NN
for/IN
refusing/VBG
to/TO
reveal/VB
the/DT
whereabouts/NN
of/IN
her/PRP$
daughter/NN
./.
Dr./NNP
Morgan/NNP
has/VBZ
just/RB
emerged/VBN
from/IN
the/DT
D.C./NNP
jail/NN
after/IN
more/JJR
than/IN
two/CD
years/NNS
'/POS
confinement/NN
for/IN
contempt/NN
of/IN
court/NN
,/,
a/DT
heroine/NN
to/TO
her/PRP$
many/JJ
supporters/NNS
./.
To/TO
the/DT
rest/NN
of/IN
us/PRP
,/,
the/DT
case/NN
is/VBZ
a/DT
puzzle/NN
./.
It/PRP
is/VBZ
what/WP
lawyers/NNS
call/VBP
``/``
fact/NN
intensive/JJ
./.
''/''
It/PRP
presents/VBZ
no/DT
great/JJ
issue/NN
of/IN
legal/JJ
principle/NN
,/,
no/DT
overriding/VBG
question/NN
of/IN
family/NN
law/NN
or/CC
the/DT
law/NN
of/IN
contempt/NN
./.
Instead/RB
,/,
it/PRP
turns/VBZ
on/IN
the/DT
disputed/VBN
and/CC
elusive/JJ
facts/NNS
of/IN
``/``
who/WP
did/VBD
what/WP
to/TO
whom/WP
./.
''/''
It/PRP
is/VBZ
difficult/JJ
,/,
if/IN
not/RB
impossible/JJ
,/,
for/IN
anyone/NN
who/WP
has/VBZ
not/RB
pored/VBN
over/IN
the/DT
thousands/NNS
of/IN
pages/NNS
of/IN
court/NN
pleadings/NNS
and/CC
transcripts/NNS
to/TO
have/VB
a/DT
worthwhile/JJ
opinion/NN
on/IN
the/DT
underlying/VBG
merits/NNS
of/IN
the/DT
controversy/NN
./.
Certainly/RB
I/PRP
do/VBP
not/RB
./.
So/IN
we/PRP
must/MD
look/VB
elsewhere/RB
for/IN
an/DT
explanation/NN
of/IN
the/DT
unusual/JJ
power/NN
this/DT
case/NN
has/VBZ
exerted/VBN
over/IN
the/DT
minds/NNS
of/IN
many/JJ
,/,
not/RB
just/RB
in/IN
Washington/NNP
but/CC
elsewhere/RB
in/IN
the/DT
country/NN
and/CC
even/RB
the/DT
world/NN
./.
I/PRP
suggest/VBP
that/IN
three/CD
themes/NNS
have/VBP
come/VBN
together/RB
in/IN
the/DT
strange/JJ
case/NN
of/IN
Dr./NNP
Morgan/NNP
./.
The/DT
first/JJ
is/VBZ
that/IN
it/PRP
represents/VBZ
an/DT
intense/JJ
battle/NN
in/IN
what/WP
James/NNP
Thurber/NNP
used/VBD
to/TO
caricature/VB
as/IN
``/``
the/DT
war/NN
between/IN
the/DT
sexes/NNS
./.
''/''
But/CC
although/IN
Thurber/NNP
did/VBD
so/RB
gently/RB
and/CC
lightheartedly/RB
,/,
many/JJ
of/IN
Dr./NNP
Morgan/NNP
's/POS
supporters/NNS
have/VBP
taken/VBN
Thurber/NNP
's/POS
memorable/JJ
title/NN
``/``
The/NNP
Male/NNP
Animal/NNP
''/''
quite/RB
literally/RB
./.
The/DT
vehemence/NN
of/IN
the/DT
emotions/NNS
aroused/VBN
by/IN
the/DT
case/NN
testifies/VBZ
to/TO
its/PRP$
symbolic/JJ
importance/NN
in/IN
the/DT
war/NN
that/IN
Thurber/NNP
accepted/VBD
as/IN
an/DT
eternal/JJ
part/NN
of/IN
the/DT
human/JJ
condition/NN
./.
A/DT
second/JJ
theme/NN
is/VBZ
the/DT
undercurrent/NN
of/IN
social/JJ
class/NN
and/CC
race/NN
in/IN
the/DT
public/JJ
reaction/NN
to/TO
the/DT
Morgan/NNP
case/NN
./.
Dr./NNP
Morgan/NNP
is/VBZ
a/DT
highly/RB
educated/VBN
white/JJ
professional/NN
who/WP
attended/VBD
some/DT
of/IN
the/DT
``/``
best/JJS
''/''
schools/NNS
./.
As/IN
members/NNS
of/IN
the/DT
Black/NNP
Caucus/NNP
in/IN
Congress/NNP
asked/VBD
during/IN
the/DT
debate/NN
on/IN
the/DT
legislation/NN
that/WDT
freed/VBD
Dr./NNP
Morgan/NNP
,/,
does/VBZ
anyone/NN
seriously/RB
believe/VB
that/IN
if/IN
she/PRP
were/VBD
an/DT
uneducated/JJ
,/,
black/JJ
,/,
working-class/JJ
woman/NN
,/,
Congress/NNP
would/MD
have/VB
rushed/VBN
to/TO
pass/VB
a/DT
private/JJ
relief/NN
bill/NN
freeing/VBG
her/PRP
?/.
Or/CC
that/IN
the/DT
president/NN
would/MD
have/VB
hurried/VBN
to/TO
sign/VB
the/DT
bill/NN
``/``
out/IN
of/IN
compassion/NN
for/IN
her/PRP$
plight/NN
''/''
?/.
To/TO
ask/VB
those/DT
questions/NNS
is/VBZ
to/TO
answer/VB
them/PRP
./.
Finally/RB
,/,
the/DT
case/NN
of/IN
Dr./NNP
Morgan/NNP
gave/VBD
Congress/NNP
an/DT
opportunity/NN
to/TO
act/VB
with/IN
unaccustomed/JJ
decisiveness/NN
and/CC
to/TO
engage/VB
in/IN
one/CD
of/IN
its/PRP$
favorite/JJ
pastimes/NNS
--/:
bashing/VBG
the/DT
District/NNP
of/IN
Columbia/NNP
government/NN
./.
The/DT
local/JJ
government/NN
is/VBZ
discredited/VBN
in/IN
the/DT
eyes/NNS
of/IN
many/JJ
residents/NNS
for/IN
a/DT
variety/NN
of/IN
reasons/NNS
,/,
and/CC
congressmen/NNS
read/VBP
the/DT

same/JJ
newspapers/NNS
and/CC
watch/VBP
the/DT
same/JJ
TV/NN
newscasts/NNS
as/IN
other/JJ
people/NNS
in/IN
the/DT
area/NN
do/VBP
./.
Bashing/VBG
the/DT
D.C./NNP
government/NN
is/VBZ
risk-free/JJ
for/IN
members/NNS
of/IN
Congress/NNP
,/,
who/WP
do/VBP
not/RB
have/VB
to/TO
answer/VB
to/TO
their/PRP$
own/JJ
constituents/NNS
for/IN
it/PRP
./.
Congress/NNP
is/VBZ
paralyzed/VBN
from/IN
acting/VBG
on/IN
such/JJ
great/JJ
issues/NNS
of/IN
the/DT
day/NN
as/IN
the/DT
federal/JJ
budget/NN
deficit/NN
./.
Yet/RB
a/DT
bill/NN
tailored/VBN
to/TO
the/DT
interests/NNS
of/IN
a/DT
single/JJ
individual/NN
passed/VBD
Congress/NNP
with/IN
almost/RB
unimaginable/JJ
speed/NN
,/,
before/IN
the/DT
judicial/JJ
process/NN
had/VBD
run/VBN
its/PRP$
course/NN
,/,
and/CC
,/,
indeed/RB
,/,
while/IN
the/DT
Morgan/NNP
case/NN
was/VBD
awaiting/VBG
a/DT
ruling/NN
by/IN
the/DT
appellate/JJ
court/NN
./.
The/DT
Morgan/NNP
case/NN
thus/RB
tells/VBZ
us/PRP
much/RB
more/RBR
about/IN
the/DT
current/JJ
state/NN
of/IN
sex/NN
,/,
class/NN
,/,
race/NN
and/CC
politics/NNS
in/IN
our/PRP$
society/NN
than/IN
it/PRP
does/VBZ
about/IN
the/DT
facts/NNS
of/IN
Dr./NNP
Morgan/NNP
's/POS
particular/JJ
situation/NN
./.
It/PRP
may/MD
stand/VB
as/IN
a/DT
metaphor/NN
for/IN
how/WRB
wide/JJ
and/CC
deep/JJ
the/DT
divisions/NNS
in/IN
that/DT
society/NN
continue/VBP
to/TO
be/VB
however/RB
we/PRP
try/VBP
to/TO
deny/VB
their/PRP$
existence/NN
./.
Mr./NNP
Rezneck/NNP
is/VBZ
a/DT
lawyer/NN
in/IN
Washington/NNP
,/,
D.C/NNP
./.
The/DT
National/NNP
Aeronautics/NNP
and/CC
Space/NNP
Administration/NNP
said/VBD
it/PRP
awarded/VBD
General/NNP
Dynamics/NNP
Corp./NNP
a/DT
$/$
64/CD
million/CD
contract/NN
to/TO
launch/VB
the/DT
Combined/NNP
Release/NNP
and/CC
Radiation/NNP
Effects/NNPS
Satellite/NNP
in/IN
June/NNP
1990/CD
./.
CRRES/NNP
is/VBZ
a/DT
joint/JJ
NASA-Air/NNP
Force/NNP
satellite/NN
to/TO
study/VB
the/DT
effects/NNS
of/IN
space/NN
radiation/NN
on/IN
micro-electronic/JJ
components/NNS
./.
NASA/NNP
said/VBD
General/NNP
Dynamics/NNP
will/MD
launch/VB
CRRES/NNP
using/VBG
an/DT
Atlas/NNP
1/CD
rocket/NN
./.
Ronald/NNP
J./NNP
Taylor/NNP
,/,
48/CD
,/,
was/VBD
named/VBN
chairman/NN
of/IN
this/DT
insurance/NN
firm/NN
's/POS
reinsurance/NN
brokerage/NN
group/NN
and/CC
its/PRP$
major/JJ
unit/NN
,/,
G.L./NNP
Hodson/NNP
&/CC
Son/NNP
Inc/NNP
./.
Robert/NNP
G./NNP
Hodson/NNP
,/,
65/CD
,/,
retired/VBD
as/IN
chairman/NN
but/CC
will/MD
remain/VB
a/DT
consultant/NN
./.
Stephen/NNP
A./NNP
Crane/NNP
,/,
44/CD
,/,
senior/JJ
vice/NN
president/NN
and/CC
chief/NN
financial/JJ
and/CC
planning/VBG
officer/NN
of/IN
the/DT
parent/NN
,/,
was/VBD
named/VBN
president/NN
and/CC
chief/NN
executive/NN
of/IN
the/DT
brokerage/NN
group/NN
and/CC
the/DT
unit/NN
,/,
succeeding/VBG
Mr./NNP
Taylor/NNP
./.
The/DT
appointments/NNS
are/VBP
effective/JJ
Nov./NNP
1/CD
./.
Corroon/NNP
said/VBD
it/PRP
will/MD
announce/VB
a/DT
successor/NN
to/TO
Mr./NNP
Crane/NNP
at/IN
a/DT
later/JJ
date/NN
./.
An/DT
investment/NN
company/NN
said/VBD
it/PRP
offered/VBD
to/TO
acquire/VB
Arby/NNP
's/POS
Inc./NNP
,/,
the/DT
fast-food/NN
operator/NN
,/,
for/IN
$/$
205/CD
million/CD
./.
The/DT
proposal/NN
,/,
however/RB
,/,
was/VBD
immediately/RB
rebuffed/VBN
by/IN
Arby/NNP
's/POS
parent/NN
,/,
DWG/NNP
Corp/NNP
./.
``/``
Arby/NNP
's/POS
is/VBZ
n't/RB
for/IN
sale/NN
,/,
''/''
said/VBD
Renee/NNP
Mottram/NNP
,/,
senior/JJ
vice/NN
president/NN
at/IN
DWG/NNP
./.
The/DT
new/JJ
suitor/NN
,/,
Stevric/NNP
Equity/NNP
Ventures/NNP
Inc./NNP
,/,
of/IN
Mineola/NNP
,/,
N.Y./NNP
,/,
characterized/VBD
its/PRP$
proposal/NN
as/IN
the/DT
``/``
first/RB
truly/RB
independent/JJ
offer/NN
which/WDT
does/VBZ
not/RB
pit/VB
one/CD
interest/NN
group/NN
against/IN
another/DT
within/IN
the/DT
Arby/NNP
's/POS
franchisee/NN
community/NN
./.
''/''
In/IN
September/NNP
,/,
DWG/NNP
,/,
a/DT
Miami/NNP
Beach/NNP
,/,
Fla./NNP
,/,
holding/VBG
company/NN
controlled/VBN
by/IN
financeer/NN
Victor/NNP
Posner/NNP
,/,
rejected/VBD
an/DT
offer/NN
from/IN
a/DT
group/NN
of/IN
Arby/NNP
's/POS
franchisees/NNS
to/TO
acquire/VB
Arby/NNP
's/POS
for/IN
$/$
200/CD
million/CD
./.
Since/IN
then/RB
,/,
a/DT
second/JJ
group/NN
of/IN
franchisees/NNS
has/VBZ
banded/VBN
together/RB
to/TO
try/VB
to/TO
wrestle/VB
control/NN
of/IN
the/DT
unit/NN
from/IN
Mr./NNP
Posner/NNP
./.
Arby/NNP
's/POS
is/VBZ
the/DT
marketing/NN
,/,
franchising/VBG
and/CC
service/NN
company/NN
for/IN
the/DT
2,100/CD
restaurants/NNS
in/IN
the/DT
chain/NN
./.
Stevric/NNP
's/POS
principals/NNS
,/,
Richard/NNP
and/CC
Steven/NNP
Buckley/NNP
,/,
said/VBD
they/PRP
led/VBD
the/DT
acquisition/NN
group/NN
that/WDT
acquired/VBD
the/DT
Nathan/NNP
's/POS
Famous/NNP
Inc./NNP
restaurant/NN
chain/NN
and/CC
subsequently/RB
served/VBD
as/IN
the/DT
top/JJ
officers/NNS
of/IN
the/DT
company/NN
./.
Richard/NNP
Buckley/NNP
said/VBD
Stevric/NNP
's/POS
acquisition/NN
of/IN
Arby/NNP
's/POS
``/``
would/MD
allow/VB
seasoned/JJ
franchisers/NNS
and/CC
food-service/NN
operators/NNS
,/,
with/IN
no/DT
conflicts/NNS
of/IN
interest/NN
,/,
to/TO
stabilize/VB
franchisee/NN
relations/NNS
and/CC
properly/RB
refocus/VB
the/DT
company/NN
's/POS
energies/NNS
toward/IN
growth/NN
./.
''/''
General/NNP
Motors/NNPS
Corp./NNP
's/POS
big/JJ
defense/NN
and/CC
automotive/JJ
electronics/NNS
unit/NN
,/,
GM/NNP
Hughes/NNP
Electronics/NNP
,/,
said/VBD
net/JJ
income/NN
fell/VBD
22/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
reflecting/VBG
declining/VBG
military/JJ
spending/NN
and/CC
slumping/VBG
GM/NNP
vehicle/NN
production/NN
./.
Meanwhile/RB
,/,
net/NN
at/IN
GM/NNP
's/POS
finance/NN
arm/NN
,/,
General/NNP
Motors/NNPS
Acceptance/NNP
Corp./NNP
,/,
fell/VBD
3.1/CD
%/NN
./.
By/IN
contrast/NN
,/,
Electronic/NNP
Data/NNP
Systems/NNPS
Corp./NNP
,/,
GM/NNP
's/POS
data/NNS
processing/NN
subsidiary/NN
,/,
boosted/VBD
net/JJ
16/CD
%/NN
./.
GM/NNP
closed/VBD
down/IN
$/$
1.875/CD
at/IN
$/$
44.875/CD
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
trading/NN
yesterday/NN
./.
Earnings/NNS
for/IN
GM/NNP
common/JJ
stock/NN
,/,
reflecting/VBG
the/DT
performance/NN
of/IN
GM/NNP
's/POS
core/NN
automotive/JJ
operations/NNS
,/,
will/MD
be/VB
disclosed/VBN
this/DT
morning/NN
./.
GM/NNP
Class/NNP
H/NNP
,/,
which/WDT
represents/VBZ
a/DT
dividend/NN
interest/NN
in/IN
Hughes/NNP
earnings/NNS
,/,
closed/VBD
at/IN
$/$
29/CD
,/,
up/RB
25/CD
cents/NNS
in/IN
Big/NNP
Board/NNP
composite/JJ
trading/NN
./.
GM/NNP
Class/NNP
E/NNP
,/,
which/WDT
represents/VBZ
a/DT
dividend/NN
interest/NN
in/IN
EDS/NNP
profit/NN
,/,
fell/VBD
75/CD
cents/NNS
to/TO
$/$
52.25/CD
on/IN
the/DT
Big/NNP
Board/NNP
./.
The/DT
earnings/NNS
drop/NN
at/IN
GM/NNP
Hughes/NNP
Electronics/NNP
is/VBZ
a/DT
sign/NN
of/IN
tough/JJ
times/NNS
at/IN
both/PDT
the/DT
defense/NN
operations/NNS
of/IN
Hughes/NNP
Aircraft/NNP
Co./NNP
and/CC
GM/NNP
's/POS
North/JJ
American/JJ
automotive/JJ
operations/NNS
,/,
which/WDT
are/VBP
a/DT
primary/JJ
customer/NN
for/IN
the/DT
Delco/NNP
Electronics/NNP
Corp./NNP
side/NN
of/IN
the/DT
GM/NNP
Hughes/NNP
unit/NN
./.
Profit/NN
at/IN
the/DT
unit/NN
fell/VBD
to/TO
$/$
110.6/CD
million/CD
,/,
or/CC
37/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
142.4/CD
million/CD
,/,
or/CC
45/CD
cents/NNS
a/DT
share/NN
,/,
largely/RB
because/IN
of/IN
a/DT
$/$
24/CD
million/CD
one-time/JJ
charge/NN
associated/VBN
with/IN
Hughes/NNP
's/POS
previously/RB

announced/VBD
plan/NN
to/TO
reduce/VB
employment/NN
by/IN
at/IN
least/JJS
6,000/CD
people/NNS
by/IN
year/NN
end/NN
./.
Even/RB
excluding/VBG
the/DT
charge/NN
,/,
however/RB
,/,
net/NN
fell/VBD
5/CD
%/NN
./.
In/IN
addition/NN
,/,
GM/NNP
's/POS
North/JJ
American/JJ
vehicle/NN
production/NN
fell/VBD
8.4/CD
%/NN
from/IN
a/DT
year/NN
ago/IN
,/,
which/WDT
hurt/VBD
Delco/NNP
Electronic/NNP
's/POS
earnings/NNS
,/,
a/DT
company/NN
spokesman/NN
said/VBD
./.
That/DT
decline/NN
was/VBD
reflected/VBN
in/IN
revenue/NN
for/IN
the/DT
GM/NNP
Hughes/NNP
unit/NN
,/,
which/WDT
edged/VBD
down/RB
to/TO
$/$
2.58/CD
billion/CD
from/IN
$/$
2.63/CD
billion/CD
./.
In/IN
the/DT
nine/CD
months/NNS
,/,
GM/NNP
Hughes/NNP
net/NN
fell/VBD
6.6/CD
%/NN
to/TO
$/$
486.6/CD
million/CD
,/,
or/CC
$/$
1.48/CD
a/DT
share/NN
,/,
from/IN
$/$
521/CD
million/CD
,/,
or/CC
$/$
1.58/CD
a/DT
share/NN
./.
Revenue/NN
rose/VBD
3.5/CD
%/NN
to/TO
$/$
8.47/CD
billion/CD
from/IN
$/$
8.18/CD
billion/CD
./.
At/IN
GMAC/NNP
,/,
net/NN
dropped/VBD
3.1/CD
%/NN
to/TO
$/$
234.5/CD
million/CD
from/IN
$/$
241.9/CD
million/CD
./.
The/DT
finance/NN
unit/NN
attributed/VBD
the/DT
decline/NN
to/TO
higher/JJR
borrowing/VBG
costs/NNS
compared/VBN
with/IN
a/DT
year/NN
earlier/RBR
./.
GMAC/NNP
said/VBD
its/PRP$
automotive/JJ
financing/NN
and/CC
leasing/VBG
business/NN
rose/VBD
35/CD
%/NN
in/IN
the/DT
U.S./NNP
,/,
largely/RB
because/IN
of/IN
dealer/NN
and/CC
customer/NN
incentives/NNS
used/VBN
to/TO
boost/VB
sales/NNS
./.
GMAC/NNP
profits/NNS
are/VBP
combined/VBN
with/IN
earnings/NNS
from/IN
the/DT
rest/NN
of/IN
GM/NNP
's/POS
operations/NNS
and/CC
attributed/VBN
to/TO
the/DT
company/NN
's/POS
traditional/JJ
common/JJ
stock/NN
./.
In/IN
the/DT
first/JJ
nine/CD
months/NNS
,/,
GMAC/NNP
's/POS
earnings/NNS
fell/VBD
8/CD
%/NN
to/TO
$/$
859.5/CD
million/CD
from/IN
$/$
930.2/CD
million/CD
./.
At/IN
EDS/NNP
,/,
third-quarter/NN
profit/NN
jumped/VBD
16/CD
%/NN
to/TO
a/DT
record/NN
$/$
110.9/CD
million/CD
,/,
or/CC
93/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
95.9/CD
million/CD
,/,
or/CC
79/CD
cents/NNS
a/DT
share/NN
./.
Revenue/NN
rose/VBD
12/CD
%/NN
to/TO
$/$
1.37/CD
billion/CD
from/IN
$/$
1.22/CD
billion/CD
./.
In/IN
the/DT
nine/CD
months/NNS
,/,
EDS/NNP
earned/VBD
$/$
315.8/CD
million/CD
,/,
or/CC
$/$
2.62/CD
a/DT
share/NN
,/,
up/RB
13/CD
%/NN
from/IN
$/$
280.7/CD
million/CD
,/,
or/CC
$/$
2.30/CD
a/DT
share/NN
./.
Revenue/NN
rose/VBD
14/CD
%/NN
to/TO
$/$
4.03/CD
billion/CD
from/IN
$/$
3.54/CD
billion/CD
./.
Revenue/NN
from/IN
non-GM/JJ
accounts/NNS
was/VBD
45/CD
%/NN
of/IN
EDS/NNP
's/POS
total/JJ
business/NN
in/IN
the/DT
latest/JJS
nine/CD
months/NNS
,/,
compared/VBN
with/IN
40/CD
%/NN
a/DT
year/NN
earlier/RBR
./.
The/DT
company/NN
has/VBZ
said/VBN
it/PRP
wants/VBZ
to/TO
boost/VB
non-GM/JJ
revenue/NN
to/TO
at/IN
least/JJS
50/CD
%/NN
of/IN
its/PRP$
total/JJ
business/NN
by/IN
the/DT
end/NN
of/IN
1990/CD
./.
William/NNP
C./NNP
Ballard/NNP
Jr./NNP
,/,
48/CD
years/NNS
old/JJ
,/,
was/VBD
elected/VBN
a/DT
director/NN
of/IN
this/DT
distilled/VBN
beverages/NNS
concern/NN
,/,
expanding/VBG
the/DT
board/NN
to/TO
11/CD
members/NNS
./.
Alvin/NNP
W./NNP
Trivelpiece/NNP
,/,
director/NN
of/IN
Oak/NNP
Ridge/NNP
National/NNP
Laboratory/NNP
,/,
Oak/NNP
Ridge/NNP
,/,
Tenn./NNP
,/,
was/VBD
elected/VBN
a/DT
director/NN
of/IN
this/DT
optical-products/NNS
concern/NN
./.
Mr./NNP
Trivelpiece/NNP
,/,
58/CD
years/NNS
old/JJ
,/,
succeeds/VBZ
William/NNP
Bolger/NNP
,/,
who/WP
died/VBD
in/IN
August/NNP
./.
In/IN
the/DT
bidding/NN
war/NN
for/IN
Public/NNP
Service/NNP
Co./NNP
of/IN
New/NNP
Hampshire/NNP
,/,
United/NNP
Illuminating/NNP
Co./NNP
raised/VBD
its/PRP$
proposed/VBN
offer/NN
to/TO
one/CD
it/PRP
valued/VBD
at/IN
$/$
2.29/CD
billion/CD
from/IN
$/$
2.19/CD
billion/CD
,/,
apparently/RB
topping/VBG
all/DT
other/JJ
bidders/NNS
./.
The/DT
bids/NNS
remain/VBP
subject/JJ
to/TO
evaluation/NN
by/IN
the/DT
federal/JJ
bankruptcy/NN
court/NN
supervising/VBG
PS/NNP
of/IN
New/NNP
Hampshire/NNP
's/POS
reorganization/NN
./.
They/PRP
are/VBP
also/RB
indirectly/RB
subject/JJ
to/TO
approval/NN
by/IN
the/DT
state/NN
of/IN
New/NNP
Hampshire/NNP
,/,
where/WRB
residents/NNS
fear/VBP
soaring/VBG
rates/NNS
to/TO
pay/VB
for/IN
the/DT
cost/NN
of/IN
reorganization/NN
./.
Each/DT
of/IN
the/DT
four/CD
parties/NNS
bidding/VBG
for/IN
PS/NNP
of/IN
New/NNP
Hampshire/NNP
proposes/VBZ
a/DT
complex/JJ
financial/JJ
package/NN
to/TO
satisfy/VB
creditors/NNS
and/CC
shareholders/NNS
and/CC
also/RB
proposes/VBZ
a/DT
formula/NN
to/TO
limit/VB
rate/NN
increases/NNS
to/TO
satisfy/VB
the/DT
state/NN
./.
The/DT
new/JJ
round/NN
of/IN
bidding/NN
would/MD
seem/VB
to/TO
complicate/VB
the/DT
decision/NN
making/NN
for/IN
Judge/NNP
James/NNP
Yacos/NNP
,/,
the/DT
bankruptcy/NN
judge/NN
overseeing/VBG
the/DT
case/NN
,/,
because/IN
the/DT
company/NN
's/POS
stockholders/NNS
,/,
unsecured/JJ
creditors/NNS
and/CC
regulators/VBZ
each/DT
are/VBP
currently/RB
backing/VBG
different/JJ
plans/NNS
./.
In/IN
addition/NN
,/,
some/DT
of/IN
the/DT
proposals/NNS
are/VBP
so/RB
close/JJ
,/,
that/IN
non-financial/JJ
issues/NNS
such/JJ
as/IN
timing/NN
may/MD
play/VB
a/DT
more/RBR
important/JJ
role/NN
./.
The/DT
unsecured/JJ
creditors/NNS
agreed/VBD
in/IN
principle/NN
to/TO
support/VB
New/NNP
Haven/NNP
,/,
Conn.-based/JJ
United/NNP
Illuminating/NNP
's/POS
new/JJ
bid/NN
./.
They/PRP
previously/RB
had/VBD
backed/VBN
an/DT
internal/JJ
reorganization/NN
plan/NN
proposed/VBN
by/IN
PS/NNP
of/IN
New/NNP
Hampshire/NNP
./.
All/DT
of/IN
the/DT
bidders/NNS
contemplate/VBP
full/JJ
payment/NN
including/VBG
interest/NN
to/TO
secured/VBN
creditors/NNS
./.
United/NNP
Illuminating/NNP
's/POS
plan/NN
,/,
however/RB
,/,
offers/VBZ
more/RBR
for/IN
unsecured/JJ
creditors/NNS
./.
Geoffrey/NNP
Kalmus/NNP
,/,
counsel/NN
to/TO
the/DT
official/JJ
creditors/NNS
committee/NN
,/,
said/VBD
that/IN
under/IN
the/DT
United/NNP
Illuminating/NNP
plan/NN
,/,
unsecured/JJ
creditors/NNS
would/MD
be/VB
paid/VBN
in/IN
full/JJ
credits/NNS
and/CC
interest/NN
of/IN
about/IN
$/$
855/CD
million/CD
,/,
accrued/VBN
before/IN
PS/NNP
of/IN
New/NNP
Hampshire/NNP
's/POS
Jan./NNP
1988/CD
filing/VBG
for/IN
bankruptcy/NN
court/NN
protection/NN
./.
In/IN
addition/NN
,/,
they/PRP
would/MD
receive/VB
some/DT
$/$
200/CD
million/CD
in/IN
payments/NNS
for/IN
interest/NN
since/IN
then/RB
./.
Mr./NNP
Kalmus/NNP
said/VBD
that/IN
by/IN
next/JJ
July/NNP
they/PRP
would/MD
have/VB
accrued/VBN
unpaid/JJ
interest/NN
equal/JJ
to/TO
$/$
350/CD
million/CD
./.
Other/JJ
plans/NNS
generally/RB
would/MD
n't/RB
pay/VB
unsecured/JJ
creditors/NNS
'/POS
interest/NN
accrued/VBN
since/IN
the/DT
filing/NN
./.
Under/IN
United/NNP
Illuminating/NNP
's/POS
plan/NN
,/,
a/DT
new/JJ
holding/VBG
company/NN
would/MD
be/VB
formed/VBN
to/TO
own/VB
the/DT
two/CD
companies/NNS
./.
It/PRP
would/MD
be/VB
72%-owned/JJ
by/IN
United/NNP
Illuminating/NNP
holders/NNS
and/CC
28%-owned/JJ
by/IN
current/JJ
holders/NNS
of/IN
PS/NNP
of/IN
New/NNP
Hampshire/NNP
preferred/VBN
and/CC
common/JJ
stock/NN
./.
PS/NNP
of/IN
New/NNP
Hampshire/NNP
preferred/VBD
holders/NNS
also/RB
would/MD
get/VB
certain/JJ
debentures/NNS
and/CC
preferred/VBN
stock/NN
./.
United/NNP
Illuminating/NNP
said/VBD
the/DT
preferred/VBN
holders/NNS
total/JJ
package/NN
would/MD
equal/VB
about/IN
60/CD
%/NN
of/IN
their/PRP$
claims/NNS
./.
Common/JJ
shareholders/NNS
would/MD
end/VB
up/IN
owning/VBG
about/IN
6.4/CD
%/NN
of/IN
the/DT
combined/VBN
company/NN
./.
As/IN
previously/RB
reported/VBN
,/,
Northeast/NNP
Utilities/NNPS
,/,
Hartford/NNP
,/,
Conn./NNP
,/,
Monday/NNP
filed/VBD
a/DT
bid/NN
it/PRP
valued/VBD
at/IN
$/$
2.25/CD
billion/CD
./.
That/DT
offer/NN
was/VBD
endorsed/VBN
by/IN
the/DT
shareholders/NNS
committee/NN
./.
The/DT
other/JJ
bidders/NNS
,/,
New/NNP
England/NNP
Electric/NNP
System/NNP
,/,
Westboro/NNP
,/,
Mass./NNP
,/,
and/CC
PS/NNP
of/IN
New/NNP
Hampshire/NNP
,/,
did/VBD
n't/RB
change/VB
the/DT
value/NN
of/IN
their/PRP$
bids/NNS
,/,
although/IN
PS/NNP
of/IN
New/NNP
Hampshire/NNP
changed/VBD
its/PRP$
rate/NN
proposal/NN
./.
New/NNP
England/NNP
Electric/NNP
values/VBZ
its/PRP$
offer/NN
at/IN
$/$
2/CD
billion/CD
and/CC
PS/NNP
of/IN
New/NNP
Hampshire/NNP
values/VBZ
its/PRP$
reorganization/NN
plan/NN
at/IN
$/$
2.2/CD
billion/CD
./.
The/DT
bankruptcy/NN
judge/NN
has/VBZ
ruled/VBN
that/IN
federal/JJ
bankruptcy/NN
laws/NNS
could/MD
be/VB
used/VBN
to/TO
circumvent/VB
state/NN
regulation/NN
./.
However/RB
,/,
creditors/NNS
and/CC
bidders/NNS
alike/RB
concede/VBP
that/IN
the/DT
state/NN
plays/VBZ
a/DT
major/JJ
role/NN
because/IN
it/PRP
could/MD
significantly/RB
delay/VB
final/JJ
settlement/NN
of/IN
a/DT
plan/NN
it/PRP
did/VBD
n't/RB
like/JJ
./.
The/DT
state/NN
has/VBZ
endorsed/VBN
the/DT
New/NNP
England/NNP
Electric/NNP
plan/NN
,/,
which/WDT
promises/VBZ
to/TO
limit/VB
rate/NN
increases/NNS
to/TO
4.8/CD
%/NN
annually/RB
for/IN
seven/CD
years/NNS
./.
Northeast/NNP
Utilities/NNPS
'/POS
plan/NN
proposes/VBZ
5.5/CD
%/NN
annual/JJ
increases/NNS
./.
PS/NNP
of/IN
New/NNP
Hampshire/NNP
amended/VBD
its/PRP$
plan/NN
to/TO
call/VB
for/IN
two/CD
years/NNS
of/IN
5.5/CD
%/NN
rate/NN
increases/NNS
followed/VBN
by/IN
five/CD
years/NNS
of/IN
4.5/CD
%/NN
increases/NNS
./.
Fuel/NN
cost/NN
adjustments/NNS
could/MD
change/VB
the/DT
effective/JJ
rate/NN
increases/NNS
,/,
however/RB
./.
Previously/RB
it/PRP
had/VBD
proposed/VBN
seven/CD
years/NNS
of/IN
5.5/CD
%/NN
increases/NNS
./.
United/NNP
Illuminating/NNP
also/RB
amended/VBD
its/PRP$
rate/NN
plan/NN
./.
The/DT
new/JJ
offer/NN
assumes/VBZ
just/RB
five/CD
years/NNS
of/IN
5.5/CD
%/NN
rate/NN
increases/NNS
,/,
to/TO
be/VB
followed/VBN
by/IN
state-approved/JJ
increases/NNS
under/IN
the/DT
usual/JJ
hearing/NN
procedure/NN
./.
Previously/RB
United/NNP
Illuminating/NNP
had/VBD
also/RB
called/VBN
for/IN
seven/CD
years/NNS
of/IN
5.5/CD
%/NN
increases/NNS
./.
The/DT
bids/NNS
and/CC
rate/NN
proposals/NNS
generally/RB
assume/VBP
the/DT
Seabrook/NNP
nuclear/JJ
power/NN
plant/NN
,/,
which/WDT
is/VBZ
completed/VBN
,/,
will/MD
go/VB
into/IN
operation/NN
./.
Most/JJS
of/IN
the/DT
plans/NNS
have/VBP
reduced/VBN
bids/NNS
in/IN
case/NN
the/DT
plant/NN
fails/VBZ
to/TO
get/VB
a/DT
license/NN
from/IN
the/DT
Nuclear/NNP
Regulatory/NNP
Commission/NNP
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
trading/NN
,/,
PS/NNP
of/IN
New/NNP
Hampshire/NNP
's/POS
17/CD
1\/2/CD
debenture/NN
due/JJ
2004/CD
closed/VBD
yesterday/NN
at/IN
$/$
82.50/CD
,/,
up/RB
$/$
2/CD
./.
The/DT
utility/NN
's/POS
stock/NN
closed/VBD
at/IN
$/$
4/CD
a/DT
share/NN
,/,
up/RB
37.5/CD
cents/NNS
,/,
in/IN
composite/JJ
trading/NN
on/IN
the/DT
Big/NNP
Board/NNP
./.
In/IN
a/DT
separate/JJ
development/NN
,/,
PS/NNP
of/IN
New/NNP
Hampshire/NNP
gave/VBD
60/CD
managers/NNS
severance/NN
agreements/NNS
that/WDT
would/MD
pay/VB
one/CD
to/TO
three/CD
years/NNS
'/POS
salary/NN
if/IN
their/PRP$
jobs/NNS
were/VBD
changed/VBN
or/CC
they/PRP
were/VBD
dismissed/VBN
in/IN
the/DT
wake/NN
of/IN
a/DT
takeover/NN
./.
It/PRP
said/VBD
the/DT
maximum/JJ
cost/NN
of/IN
the/DT
plan/NN
would/MD
be/VB
$/$
9.7/CD
million/CD
./.
C./NNP
Hyde/NNP
Tucker/NNP
will/MD
become/VB
president/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
Bell/NNP
Atlantic/NNP
International/NNP
Inc./NNP
,/,
a/DT
unit/NN
of/IN
this/DT
telecommunications/NNS
concern/NN
,/,
effective/JJ
Jan./NNP
1/CD
./.
Mr./NNP
Tucker/NNP
,/,
56/CD
years/NNS
old/JJ
,/,
is/VBZ
currently/RB
vice/NN
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
of/IN
Bell/NNP
Atlantic/NNP
's/POS
C&P/NNP
Telephone/NNP
unit/NN
./.
Mr./NNP
Tucker/NNP
will/MD
succeed/VB
Salvatore/NNP
J./NNP
Barbera/NNP
,/,
64/CD
,/,
who/WP
will/MD
hold/VB
the/DT
newly/RB
created/VBN
position/NN
of/IN
chairman/NN
of/IN
the/DT
international/JJ
unit/NN
until/IN
his/PRP$
retirement/NN
April/NNP
1/CD
./.
Richard/NNP
Breeden/NNP
had/VBD
n't/RB
noticed/VBN
that/IN
his/PRP$
new/JJ
desk/NN
had/VBD
just/RB
four/CD
telephone/NN
lines/NNS
and/CC
one/CD
phone/NN
./.
It/PRP
was/VBD
,/,
after/IN
all/DT
,/,
only/RB
his/PRP$
second/JJ
full/JJ
day/NN
as/IN
chairman/NN
of/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
./.
But/CC
the/DT
lack/NN
of/IN
lines/NNS
became/VBD
painfully/RB
apparent/JJ
./.
As/IN
the/DT
stock/NN
market/NN
lurched/VBD
into/IN
a/DT
190-point/JJ
free/JJ
fall/NN
on/IN
Oct./NNP
13/CD
,/,
Mr./NNP
Breeden/NNP
found/VBD
himself/PRP
scurrying/VBG
around/IN
the/DT
sixth/JJ
floor/NN
of/IN
the/DT
SEC/NNP
--/:
from/IN
his/PRP$
desk/NN
,/,
where/WRB
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
was/VBD
on/IN
an/DT
open/JJ
line/NN
,/,
to/TO
his/PRP$
assistant/NN
's/POS
office/NN
,/,
where/WRB
the/DT
Commodity/NNP
Futures/NNPS
Trading/NNP
Commission/NNP
was/VBD
connected/VBN
,/,
to/TO
a/DT
third/JJ
room/NN
,/,
where/WRB
a/DT
computer/NN
monitored/VBD
market/NN
moves/NNS
./.
With/IN
other/JJ
anxious/JJ
calls/NNS
pouring/VBG
in/IN
,/,
he/PRP
recalls/VBZ
,/,
``/``
I/PRP
'd/MD
either/RB
have/VB
to/TO
disconnect/VB
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
or/CC
go/VB
out/IN
to/TO
the/DT
secretary/NN
's/POS
desk/NN
./.
''/''
It/PRP
wo/MD
n't/RB
happen/VB
again/RB
./.
Now/RB
there/EX
are/VBP
more/JJR
lines/NNS
connected/VBN
to/TO
the/DT
chairman/NN
's/POS
office/NN
,/,
and/CC
the/DT
market-monitoring/JJ
computer/NN
has/VBZ
been/VBN
moved/VBN
next/JJ
to/TO
his/PRP$
desk/NN
./.
It/PRP
's/VBZ
all/DT
part/NN
of/IN
a/DT
new/JJ
``/``
command/NN
center/NN
./.
''/''
The/DT
changes/NNS
in/IN
the/DT
office/NN
layout/NN
illustrate/VBP
Mr./NNP
Breeden/NNP
's/POS
stance/NN
as/IN
the/DT
nation/NN
's/POS
top/JJ
securities/NNS
regulator/NN
./.
Like/IN
his/PRP$
predecessor/NN
,/,
David/NNP
Ruder/NNP
,/,
he/PRP
was/VBD
faced/VBN
with/IN
a/DT
crisis/NN
in/IN
the/DT
stock/NN
markets/NNS
soon/RB
after/IN
coming/VBG
into/IN
office/NN
./.
But/CC
unlike/IN
Mr./NNP
Ruder/NNP
,/,
who/WP
during/IN
the/DT
1987/CD
crash/NN
damaged/VBD
himself/PRP
by/IN
saying/VBG
rather/RB
offhandedly/RB
that/IN
the/DT
markets/NNS
might/MD
be/VB
closed/VBN
,/,
Mr./NNP
Breeden/NNP
is/VBZ
turning/VBG
the/DT
market/NN
drop/NN
to/TO
his/PRP$
own/JJ
advantage/NN
,/,
using/VBG
it/PRP
to/TO
further/VB
his/PRP$
agenda/NN
for/IN
the/DT
SEC/NNP
./.
In/IN
an/DT
interview/NN
and/CC
in/IN
congressional/JJ
testimony/NN
,/,
he/PRP
repeatedly/RB
points/VBZ
to/TO
the/DT
recent/JJ
190-point/JJ
plunge/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
--/:
the/DT
second-largest/JJ
ever/RB
--/:
as/IN
evidence/NN
of/IN
the/DT
need/NN
for/IN
Congress/NNP
to/TO
give/VB
the/DT
SEC/NNP
the/DT
ability/NN
to/TO
better/RB
monitor/VB
leveraged/JJ
buy-out/NN
loan/NN
activity/NN
by/IN
brokerage/NN
firms/NNS
and/CC
to/TO
track/VB
big/JJ
trades/NNS
in/IN
the/DT
market/NN
./.
A/DT
veteran/NN
of/IN
another/DT
financial/JJ
crisis/NN
,/,
the/DT
savings-and-loan/JJ
bailout/NN
,/,
Mr./NNP
Breeden/NNP
wants/VBZ
to/TO
have/VB
the/DT
SEC/NNP
regulate/VB
securities/NNS
issued/VBN
by/IN
banks/NNS
and/CC
S&Ls/NNS
./.
More/RBR
broadly/RB
,/,
he/PRP
wants/VBZ
to/TO
``/``
modernize/VB
''/''
regulation/NN
by/IN
eliminating/VBG
barriers/NNS
between/IN
commercial/JJ
and/CC
investment/JJ
banking/NN
and/CC
by/IN
helping/VBG
U.S./NNP
financial/JJ
firms/NNS
compete/VB
in/IN
the/DT
global/JJ
market/NN
./.
He/PRP
believes/VBZ
the/DT
tax/NN
code/NN
encourages/VBZ
the/DT
use/NN
of/IN
debt/NN
instead/RB
of/IN
stock/NN
and/CC
may/MD
fuel/VB
leveraged/NN
buy-outs/NNS
,/,
an/DT
area/NN
the/DT
SEC/NNP
does/VBZ
n't/RB
regulate/VB
directly/RB
but/CC
one/CD
where/WRB
it/PRP
wields/VBZ
influence/NN
both/DT
on/IN
Wall/NNP
Street/NNP
and/CC
in/IN
Congress/NNP
./.
Also/RB
unlike/IN
Mr./NNP
Ruder/NNP
,/,
Mr./NNP
Breeden/NNP
appears/VBZ
to/TO
be/VB
in/IN
a/DT
position/NN
to/TO
get/VB
somewhere/RB
with/IN
his/PRP$
agenda/NN
./.
As/IN
a/DT
former/JJ
White/NNP
House/NNP
aide/NN
who/WP
worked/VBD
closely/RB
with/IN
Congress/NNP
,/,
he/PRP
is/VBZ
savvy/JJ
in/IN
the/DT
ways/NNS
of/IN
Washington/NNP
./.
What/WP
's/VBZ
more/JJR
,/,
the/DT
coming/VBG
months/NNS
likely/RB
will/MD
offer/VB
him/PRP
the/DT
opportunity/NN
to/TO
obtain/VB
his/PRP$
own/JJ
majority/NN
on/IN
the/DT
five-member/JJ
commission/NN
,/,
enabling/VBG
him/PRP
to/TO
avoid/VB
the/DT
dissension/NN
that/WDT
frustrated/VBD
his/PRP$
predecessor/NN
./.
But/CC
Mr./NNP
Breeden/NNP
,/,
a/DT
39-year-old/JJ
securities/NNS
lawyer/NN
,/,
has/VBZ
skirted/VBN
some/DT
of/IN
the/DT
heftier/JJR
issues/NNS
facing/VBG
the/DT
financial/JJ
markets/NNS
./.
For/IN
instance/NN
,/,
he/PRP
has/VBZ
n't/RB
stated/VBN
a/DT
clear/JJ
position/NN
on/IN
high-risk/JJ
,/,
high-yield/JJ
junk/NN
bonds/NNS
,/,
an/DT
area/NN
of/IN
growing/VBG
concern/NN
as/IN
turmoil/NN
in/IN
the/DT
junk/NN
market/NN
spills/VBZ
over/IN
into/IN
stocks/NNS
./.
He/PRP
may/MD
be/VB
waiting/VBG
to/TO
see/VB
the/DT
results/NNS
of/IN
several/JJ
pending/VBG
SEC/NNP
studies/NNS
of/IN
junk/NN
market/NN
liquidity/NN
and/CC
disclosure/NN
rules/NNS
./.
He/PRP
also/RB
has/VBZ
kept/VBN
a/DT
close/JJ
wrap/NN
on/IN
the/DT
names/NNS
of/IN
people/NNS
under/IN
consideration/NN
for/IN
the/DT
crucial/JJ
post/NN
of/IN
enforcement/NN
director/NN
at/IN
the/DT
commission/NN
,/,
a/DT
job/NN
vacant/JJ
since/IN
the/DT
summer/NN
./.
Mr./NNP
Breeden/NNP
's/POS
selection/NN
will/MD
be/VB
scrutinized/VBN
as/IN
an/DT
important/JJ
signal/NN
about/IN
the/DT
strength/NN
of/IN
his/PRP$
commitment/NN
to/TO
continuing/VBG
the/DT
SEC/NNP
's/POS
high-profile/JJ
pursuit/NN
of/IN
insider/NN
trading/NN
and/CC
market/NN
manipulation/NN
on/IN
Wall/NNP
Street/NNP
./.
Congress/NNP
seems/VBZ
likely/JJ
to/TO
let/VB
the/DT
new/JJ
chairman/NN
have/VBP
his/PRP$
way/NN
for/IN
a/DT
while/NN
./.
Members/NNS
of/IN
the/DT
Senate/NNP
Banking/NNP
Committee/NNP
know/VBP
Mr./NNP
Breeden/NNP
from/IN
working/VBG
on/IN
the/DT
thrift-bailout/JJ
bill/NN
,/,
and/CC
the/DT
relationship/NN
generally/RB
remains/VBZ
warm/JJ
./.
Indeed/RB
,/,
during/IN
Mr./NNP
Breeden/NNP
's/POS
confirmation/NN
hearing/NN
last/JJ
month/NN
,/,
senators/NNS
asked/VBD
him/PRP
to/TO
introduce/VB
his/PRP$
children/NNS
three/CD
separate/JJ
times/NNS
--/:
more/RBR
often/RB
than/IN
they/PRP
asked/VBD
about/IN
his/PRP$
qualifications/NNS
for/IN
the/DT
job/NN
./.
These/DT
days/NNS
,/,
Mr./NNP
Breeden/NNP
is/VBZ
winning/VBG
praise/NN
in/IN
Washington/NNP
and/CC
on/IN
Wall/NNP
Street/NNP
for/IN
his/PRP$
behind-the-scenes/JJ
role/NN
in/IN
monitoring/VBG
the/DT
Friday-the-13th/JJ
market/NN
plunge/NN
and/CC
the/DT
following/VBG
Monday/NNP
's/POS
harrowing/JJ
morning/NN
session/NN
./.
As/IN
a/DT
regulator/NN
charged/VBN
with/IN
restoring/VBG
investor/NN
confidence/NN
,/,
Mr./NNP
Breeden/NNP
avoided/VBD
making/VBG
market-jarring/JJ
comments/NNS
and/CC
worked/VBD
to/TO
gather/VB
information/NN
critical/JJ
to/TO
Wall/NNP
Street/NNP
and/CC
to/TO
other/JJ
government/NN
agencies/NNS
./.
Not/RB
everyone/NN
has/VBZ
jumped/VBN
on/IN
the/DT
Breeden/NNP
bandwagon/NN
,/,
however/RB
./.
Some/DT
in/IN
Washington/NNP
contend/VBP
that/IN
it/PRP
's/VBZ
too/RB
soon/RB
to/TO
tell/VB
whether/IN
Mr./NNP
Breeden/NNP
will/MD
help/VB
or/CC
hinder/VB
the/DT
SEC/NNP
./.
``/``
I/PRP
do/VBP
n't/RB
think/VB
this/DT
was/VBD
a/DT
real/JJ
test/NN
,/,
''/''
says/VBZ
one/CD
congressional/JJ
aide/NN
./.
``/``
It/PRP
was/VBD
a/DT
fairly/RB
stressful/JJ
weekend/NN
,/,
but/CC
my/PRP$
sense/NN
is/VBZ
if/IN
you/PRP
had/VBD
n't/RB
had/VBN
Richard/NNP
Breeden/NNP
there/RB
,/,
it/PRP
would/MD
n't/RB
have/VB
made/VBN
much/RB
of/IN
a/DT
difference/NN
./.
''/''
For/IN
some/DT
at/IN
the/DT
SEC/NNP
,/,
an/DT
agency/NN
that/WDT
covets/VBZ
its/PRP$
independence/NN
,/,
Mr./NNP
Breeden/NNP
may/MD
be/VB
too/RB
much/JJ
of/IN
a/DT
Washington/NNP
insider/NN
./.
They/PRP
note/VBP
that/IN
he/PRP
has/VBZ
adorned/VBN
his/PRP$
office/NN
with/IN
five/CD
photos/NNS
of/IN
George/NNP
Bush/NNP
,/,
one/CD
of/IN
them/PRP
featuring/VBG
the/DT
First/NNP
Dog/NNP
,/,
Millie/NNP
./.
They/PRP
worry/VBP
that/IN
Mr./NNP
Breeden/NNP
also/RB
will/MD
roll/VB
over/IN
when/WRB
told/VBN
to/TO
do/VB
so/RB
by/IN
the/DT
White/NNP
House/NNP
./.
But/CC
Mr./NNP
Breeden/NNP
already/RB
has/VBZ
shown/VBN
an/DT
eagerness/NN
to/TO
run/VB
the/DT
SEC/NNP
his/PRP$
way/NN
./.
During/IN
the/DT
Monday/NNP
market/NN
rebound/NN
,/,
a/DT
New/NNP
York/NNP
exchange/NN
spokesman/NN
told/VBD
Cable/NNP
News/NNP
Network/NNP
viewers/NNS
that/IN
the/DT
industrial/JJ
average/NN
had/VBD
turned/VBN
down/IN
70/CD
points/NNS
./.
Stunned/VBN
,/,
Mr./NNP
Breeden/NNP
turned/VBD
to/TO
his/PRP$
market-monitoring/JJ
computer/NN
,/,
which/WDT
by/IN
then/RB
was/VBD
next/JJ
to/TO
his/PRP$
desk/NN
./.
It/PRP
showed/VBD
the/DT
DJIA/NNP
up/RB
30/CD
points/NNS
./.
SEC/NNP
staffers/NNS
soon/RB
determined/VBD
that/IN
a/DT
widely/RB
watched/VBN
stock-market/NN
service/NN
,/,
Quotron/NNP
,/,
had/VBD
miscalculated/VBN
the/DT
industrial/JJ
average/NN
./.
Mr./NNP
Breeden/NNP
instructed/VBD
SEC/NNP
staffers/NNS
to/TO
inform/VB
the/DT
network/NN
that/IN
it/PRP
was/VBD
airing/VBG
the/DT
wrong/JJ
number/NN
./.
``/``
It/PRP
was/VBD
the/DT
plunge/NN
that/WDT
did/VBD
n't/RB
happen/VB
,/,
''/''
he/PRP
says/VBZ
./.
Mr./NNP
Breeden/NNP
also/RB
is/VBZ
trying/VBG
to/TO
use/VB
a/DT
far/RB
more/RBR
catastrophic/JJ
event/NN
--/:
the/DT
California/NNP
earthquake/NN
--/:
to/TO
move/VB
another/DT
rule/NN
change/NN
past/IN
Congress/NNP
./.
That/DT
disaster/NN
closed/VBD
the/DT
Pacific/NNP
Stock/NNP
Exchange/NNP
's/POS
stock/NN
options-trading/JJ
operation/NN
,/,
forcing/VBG
those/DT
options/NNS
to/TO
be/VB
switched/VBN
to/TO
other/JJ
exchanges/NNS
temporarily/RB
./.
Though/IN
obscure/JJ
to/TO
most/JJS
investors/NNS
,/,
the/DT
question/NN
of/IN
whether/IN
to/TO
list/VB
options/NNS
on/IN
more/JJR
than/IN
one/CD
exchange/NN
has/VBZ
aroused/VBN
much/JJ
interest/NN
in/IN
Congress/NNP
,/,
mainly/RB
because/IN
regional/JJ
exchanges/NNS
fear/VBP
the/DT
change/NN
could/MD
bankrupt/VB
them/PRP
./.
Congressmen/NNS
raised/VBD
the/DT
issue/NN
yesterday/NN
at/IN
a/DT
hearing/NN
./.
Mr./NNP
Breeden/NNP
,/,
not/RB
missing/VBG
a/DT
chance/NN
to/TO
press/VB
his/PRP$
agenda/NN
,/,
cited/VBD
the/DT
earthquake/NN
./.
That/DT
event/NN
,/,
he/PRP
contended/VBD
,/,
simply/RB
shows/VBZ
the/DT
``/``
vulnerability/NN
''/''
of/IN
having/VBG
listings/NNS
on/IN
only/JJ
one/CD
exchange/NN
./.
In/IN
a/DT
corner/NN
of/IN
the/DT
cavernous/JJ
,/,
new/JJ
Nippon/NNP
Convention/NNP
Center/NNP
sits/VBZ
Mazda/NNP
Motor/NNP
Corp./NNP
's/POS
advanced-technology/JJ
display/NN
./.
The/DT
highlight/NN
:/:
a/DT
``/``
fragrance/NN
control/NN
system/NN
./.
''/''
With/IN
the/DT
touch/NN
of/IN
a/DT
button/NN
,/,
drivers/NNS
can/MD
choose/VB
from/IN
lavender/NN
,/,
jasmine/NN
,/,
mint/NN
or/CC
perfume/NN
scents/NNS
,/,
all/DT
blown/VBN
in/IN
through/IN
the/DT
car/NN
's/POS
air-conditioning/NN
system/NN
./.
The/DT
soft/JJ
,/,
wafting/VBG
aromas/NNS
will/MD
``/``
improve/VB
ride/NN
comfort/NN
,/,
''/''
the/DT
display/NN
attests/VBZ
,/,
and/CC
a/DT
proud/JJ
employee/NN
says/VBZ
Mazda/NNP
hopes/VBZ
to/TO
move/VB
the/DT
system/NN
out/IN
of/IN
the/DT
lab/NN
and/CC
into/IN
its/PRP$
cars/NNS
in/IN
a/DT
year/NN
or/CC
two/CD
./.
Welcome/VB
to/TO
the/DT
28th/JJ
Tokyo/NNP
Motor/NNP
Show/NNP
./.
Here/RB
you/PRP
can/MD
find/VB
Mitsubishi/NNP
Motors/NNPS
Corp./NNP
displaying/VBG
a/DT
``/``
live/JJ
fish/NN
transporter/NN
,/,
''/''
a/DT
truck/NN
akin/JJ
to/TO
an/DT
aquarium/NN
on/IN
wheels/NNS
,/,
and/CC
Nissan/NNP
Motor/NNP
Co./NNP
with/IN
its/PRP$
``/``
keyless/JJ
''/''
Boga/NNP
,/,
whose/WP$
doors/NNS
unlock/VBP
upon/IN
recognizing/VBG
the/DT
owner/NN
's/POS
fingerprints/NNS
./.
Suzuki/NNP
Motor/NNP
Co./NNP
's/POS
Escudome/NNP
sport/NN
vehicle/NN
features/VBZ
a/DT
pop-out/JJ
rear/JJ
tent/NN
and/CC
invites/VBZ
drivers/NNS
to/TO
go/VB
``/``
back/RB
to/TO
the/DT
nature/NN
./.
''/''
But/CC
this/DT
biennial/JJ
event/NN
,/,
the/DT
world/NN
's/POS
largest/JJS
display/NN
of/IN
cars/NNS
and/CC
trucks/NNS
,/,
has/VBZ
its/PRP$
serious/JJ
side/NN
,/,
including/VBG
the/DT
first/JJ
major/JJ
exhibitions/NNS
of/IN
future/JJ
engines/NNS
and/CC
vehicle-suspension/NN
systems/NNS
./.
It/PRP
's/VBZ
also/RB
the/DT
prime/JJ
showcase/NN
for/IN
a/DT
country/NN
whose/WP$
world/NN
dominance/NN
in/IN
the/DT
industry/NN
is/VBZ
increasingly/RB
acknowledged/VBN
,/,
and/CC
therein/RB
lies/VBZ
the/DT
draw/NN
./.
Even/RB
the/DT
biggest/JJS
auto/NN
shows/NNS
in/IN
the/DT
U.S./NNP
are/VBP
largely/RB
regional/JJ
affairs/NNS
,/,
but/CC
the/DT
Tokyo/NNP
show/NN
is/VBZ
international/JJ
./.
Virtually/RB
every/DT
automotive/JJ
analyst/NN
in/IN
New/NNP
York/NNP
showed/VBD
up/IN
./.
Detroit-to-Tokyo/JJ
flights/NNS
were/VBD
booked/VBN
solid/RB
this/DT
week/NN
as/IN
Motor/NNP
City/NNP
executives/NNS
,/,
including/VBG
Ford/NNP
Motor/NNP
Co./NNP
Chairman/NNP
Donald/NNP
E./NNP
Petersen/NNP
and/CC
Chrysler/NNP
Corp./NNP
Vice/NNP
Chairman/NNP
Gerald/NNP
Greenwald/NNP
,/,
flocked/VBD
to/TO
see/VB
the/DT
future/NN
./.
Even/RB
the/DT
Soviet/NNP
Union/NNP
came/VBD
,/,
for/IN
the/DT
first/JJ
time/NN
in/IN
24/CD
years/NNS
,/,
to/TO
show/VB
off/IN
its/PRP$
Lada/NNP
Niva/NNP
sedan/NN
and/CC
its/PRP$
futuristic/JJ
dark-blue/JJ
``/``
Kompakt/NNP
''/''
model/NN
./.
Here/RB
's/VBZ
a/DT
firsthand/JJ
look/NN
at/IN
what/WP
the/DT
Japanese/JJ
hosts/NNS
sported/VBD
,/,
and/CC
what/WP
the/DT
foreign/JJ
visitors/NNS
saw/VBD
./.
New/NNP
Technology/NNP
The/DT
hottest/JJS
displays/NNS
were/VBD
items/NNS
that/WDT
insulate/VBP
passengers/NNS
from/IN
bumps/NNS
,/,
potholes/NNS
and/CC
other/JJ
rigors/NNS
of/IN
the/DT
road/NN
./.
These/DT
``/``
active/JJ
suspension/NN
systems/NNS
''/''
electronically/RB
sense/VBP
road/NN
conditions/NNS
and/CC
adjust/VBP
a/DT
car/NN
's/POS
ride/NN
./.
Existing/VBG
suspension/NN
systems/NNS
try/VBP
to/TO
absorb/VB
bounces/NNS
,/,
but/CC
active/JJ
suspension/NN
provides/VBZ
power/NN
to/TO
counter/VB
the/DT
jolts/NNS
./.
Nissan/NNP
,/,
in/IN
a/DT
34-page/JJ
tract/NN
,/,
modestly/RB
compares/VBZ
its/PRP$
``/``
hydraulic/JJ
active/JJ
suspension/NN
''/''
to/TO
a/DT
cheetah/NN
,/,
and/CC
equates/VBZ
the/DT
various/JJ
parts/NNS
to/TO
the/DT
animal/NN
's/POS
heart/NN
,/,
brain/NN
,/,
nerves/NNS
and/CC
blood/NN
vessels/NNS
./.
Toyota/NNP
Motor/NNP
Corp./NNP
grandly/RB
touted/VBD
its/PRP$
system/NN
in/IN
a/DT
car/NN
that/WDT
splits/VBZ
in/IN
half/DT
to/TO
reveal/VB
the/DT
suspension/NN
's/POS
inner/JJ
workings/NNS
./.
Nissan/NNP
says/VBZ
it/PRP
will/MD
introduce/VB
its/PRP$
first/JJ
system/NN
next/JJ
month/NN
on/IN
the/DT
Infiniti/NNP
Q45/NNP
luxury/NN
sedan/NN
,/,
and/CC
Toyota/NNP
's/POS
Celica/NNP
coupe/NN
will/MD
go/VB
on/IN
sale/NN
with/IN
the/DT
suspension/NN
device/NN
next/IN
spring/NN
./.
But/CC
drivers/NNS
in/IN
the/DT
U.S./NNP
must/MD
wait/VB
:/:
The/DT
Japanese/NNP
,/,
for/IN
now/RB
,/,
are/VBP
keeping/VBG
active/JJ
suspension/NN
for/IN
domestic/JJ
use/NN
only/RB
./.
And/CC
Detroit/NNP
's/POS
Big/NNP
Three/CD
auto/NN
makers/NNS
say/VBP
their/PRP$
systems/NNS
are/VBP
still/RB
under/IN
development/NN
./.
In/IN
the/DT
engine/NN
department/NN
,/,
several/JJ
companies/NNS
displayed/VBD
experimental/JJ
models/NNS
that/IN
within/IN
a/DT
decade/NN
could/MD
provide/VB
power/NN
equal/JJ
to/TO
today/NN
's/POS
engines/NNS
and/CC
yet/RB
take/VB
up/IN
only/RB
half/PDT
the/DT
space/NN
,/,
allowing/VBG
for/IN
shorter/JJR
hoods/NNS
./.
In/IN
the/DT
so-called/JJ
two-stroke/JJ
engines/NNS
,/,
which/WDT
are/VBP
expected/VBN
to/TO
get/VB
sharply/RB
higher/JJR
gas/NN
mileage/NN
,/,
each/DT
piston/NN
goes/VBZ
up/IN
and/CC
down/IN
only/RB
once/RB
to/TO
provide/VB
power/NN
./.
By/IN
contrast/NN
,/,
the/DT
pistons/NNS
in/IN
conventional/JJ
four-stroke/JJ
engines/NNS
must/MD
move/VB
up/IN
and/CC
down/IN
twice/RB
in/IN
each/DT
power/NN
cycle/NN
./.
The/DT
two-stroke/JJ
engine/NN
displays/NNS
by/IN
Toyota/NNP
and/CC
Fuji/NNP
Heavy/NNP
Industries/NNPS
,/,
the/DT
maker/NN
of/IN
Subaru/NNP
cars/NNS
,/,
drew/VBD
plenty/RB
of/IN
interest/NN
from/IN
U.S./NNP
auto/NN
executives/NNS
,/,
who/WP
are/VBP
rushing/VBG
to/TO
develop/VB
two-stroke/JJ
engines/NNS
./.
Honda/NNP
Motor/NNP
Co./NNP
shows/VBZ
a/DT
more/RBR
conventional/JJ
five-cylinder/JJ
engine/NN
in/IN
the/DT
new/JJ
Accord/NNP
Inspire/NNP
model/NN
,/,
which/WDT
made/VBD
its/PRP$
debut/NN
just/RB
this/DT
month/NN
--/:
in/IN
Japan/NNP
only/RB
./.
Honda/NNP
says/VBZ
the/DT
five-cylinder/JJ
engine/NN
provides/VBZ
a/DT
compromise/NN
between/IN
the/DT
fuel-economy/NN
of/IN
a/DT
four-cylinder/JJ
,/,
and/CC
the/DT
power/NN
of/IN
a/DT
V-6/NN
./.
It/PRP
is/VBZ
rumored/VBN
to/TO
be/VB
bound/VBN
for/IN
a/DT
new/JJ
model/NN
in/IN
the/DT
luxury/NN
Acura/NNP
line/NN
in/IN
the/DT
U.S./NNP
,/,
but/CC
Honda/NNP
officials/NNS
would/MD
n't/RB
comment/VB
./.
Odd/NNP
Cars/NNPS
,/,
Funny/NNP
Names/NNPS
There/EX
's/VBZ
plenty/NN
of/IN
whimsy/NN
here/RB
,/,
but/CC
it/PRP
is/VBZ
n't/RB
always/RB
clear/JJ
whether/IN
it/PRP
's/VBZ
intentional/JJ
./.
The/DT
show/NN
's/POS
symbol/NN
is/VBZ
a/DT
woman/NN
riding/VBG
on/IN
a/DT
snail/NN
,/,
not/RB
your/PRP$
usual/JJ
metaphor/NN
for/IN
speed/NN
and/CC
agility/NN
./.
But/CC
the/DT
sponsors/NNS
have/VBP
an/DT
explanation/NN
:/:
``/``
Through/IN
the/DT
character/NN
associated/VBN
with/IN
a/DT
snail/NN
,/,
''/''
they/PRP
say/VBP
,/,
``/``
important/JJ
values/NNS
such/JJ
as/IN
harmony/NN
with/IN
nature/NN
and/CC
aspirations/NNS
for/IN
the/DT
future/NN
are/VBP
sought/VBN
./.
''/''
Japanese/JJ
auto/NN
makers/NNS
are/VBP
known/VBN
for/IN
coming/VBG
up/IN
with/IN
funny/JJ
names/NNS
,/,
but/CC
this/DT
year/NN
the/DT
practice/NN
seems/VBZ
to/TO
have/VB
reached/VBN
a/DT
new/JJ
high/JJ
--/:
or/CC
low/JJ
./.
Honda/NNP
has/VBZ
a/DT
tiny/JJ
motorcycle/NN
called/VBN
the/DT
Monkey/NNP
,/,
and/CC
a/DT
slightly/RB
larger/JJR
cousin/NN
,/,
the/DT
Gorilla/NNP
./.
Mitsubishi/NNP
has/VBZ
a/DT
futuristic/JJ
delivery/NN
truck/NN
called/VBN
the/DT
Guppy/NNP
./.
Mazda/NNP
has/VBZ
the/DT
Bongo/NNP
truck/NN
and/CC
,/,
under/IN
its/PRP$
Autozam/NNP
nameplate/NN
,/,
a/DT
``/``
microvan/NN
''/''
called/VBN
the/DT
Scrum/NNP
./.
Its/PRP$
buglike/JJ
Carol/NNP
minicar/NN
is/VBZ
``/``
designed/VBN
with/IN
softness/NN
,/,
gentleness/NN
and/CC
warmheartedness/NN
./.
''/''
But/CC
the/DT
court/NN
jester/NN
appears/VBZ
to/TO
be/VB
Japan/NNP
's/POS
smallest/JJS
car/NN
maker/NN
,/,
Daihatsu/NNP
Motor/NNP
Co/NNP
./.
One/CD
of/IN
its/PRP$
futuristic/JJ
concepts/NNS
is/VBZ
the/DT
bubblelike/JJ
Sneaker/NNP
,/,
which/WDT
seats/VBZ
just/RB
one/CD
person/NN
in/IN
front/NN
and/CC
could/MD
hold/VB
a/DT
small/JJ
child/NN
and/CC
bag/NN
of/IN
groceries/NNS
in/IN
the/DT
rear/NN
./.
Daihatsu/NNP
also/RB
has/VBZ
the/DT
Fellow/NNP
90/CD
,/,
the/DT
Leeza/NNP
Spider/NNP
and/CC
the/DT
Hijet/NNP
Dumbo/NNP
./.
The/DT
jokes/NNS
are/VBP
n't/RB
just/RB
on/IN
the/DT
Japanese/NNP
,/,
though/RB
./.
Regie/NNP
Nationale/NNP
des/NNP
Usines/NNP
Renault/NNP
,/,
the/DT
French/JJ
auto/NN
maker/NN
,/,
has/VBZ
a/DT
concept/NN
car/NN
called/VBN
the/DT
Megane/NNP
./.
The/DT
name/NN
is/VBZ
supposed/VBN
to/TO
connote/VB
feminine/JJ
grandeur/NN
,/,
but/CC
in/IN
Japanese/NNP
it/PRP
means/VBZ
``/``
eyeglasses/NNS
./.
''/''
Foreign/NNP
Presence/NNP
Foreign/JJ
auto/NN
makers/NNS
are/VBP
taking/VBG
the/DT
Tokyo/NNP
Motor/NNP
Show/NNP
more/RBR
seriously/RB
than/IN
ever/RB
./.
AB/NNP
Volvo/NNP
invites/VBZ
passers-by/NNS
to/TO
play/VB
``/``
the/DT
role/NN
of/IN
the/DT
test/NN
dummy/NN
''/''
by/IN
hopping/VBG
in/IN
a/DT
car/NN
that/WDT
simulates/VBZ
a/DT
crash/NN
to/TO
show/VB
just/RB
how/WRB
its/PRP$
seat-belt/NN
tightener/NN
works/VBZ
./.
Hyundai/NNP
Motor/NNP
Co./NNP
of/IN
South/NNP
Korea/NNP
has/VBZ
its/PRP$
first-ever/JJ
exhibit/NN
in/IN
Tokyo/NNP
./.
General/NNP
Motors/NNPS
Corp./NNP
is/VBZ
sponsoring/VBG
its/PRP$
first/JJ
independent/JJ
display/NN
in/IN
10/CD
years/NNS
,/,
and/CC
it/PRP
includes/VBZ
a/DT
boxy/JJ
Buick/NNP
station/NN
wagon/NN
with/IN
wood-grain/JJ
side/NN
panels/NNS
./.
Ford/NNP
and/CC
Chrysler/NNP
also/RB
have/VBP
exhibits/NNS
,/,
although/IN
theirs/PRP
are/VBP
tucked/VBN
in/IN
a/DT
separate/JJ
room/NN
with/IN
the/DT
less-popular/JJ
automotive/JJ
parts/NNS
section/NN
./.
``/``
We/PRP
've/VBP
got/VBN
to/TO
get/VB
out/IN
of/IN
the/DT
Detroit/NNP
mentality/NN
and/CC
be/VB
part/NN
of/IN
the/DT
world/NN
mentality/NN
,/,
''/''
declares/VBZ
Charles/NNP
M./NNP
Jordan/NNP
,/,
GM/NNP
's/POS
vice/NN
president/NN
for/IN
design/NN
,/,
in/IN
explaining/VBG
his/PRP$
pilgrimage/NN
to/TO
the/DT
Tokyo/NNP
Show/NNP
./.
Even/RB
so/RB
,/,
traditional/JJ
American/JJ
cockiness/NN
is/VBZ
n't/RB
terribly/RB
endangered/VBN
./.
Ford/NNP
officials/NNS
,/,
for/IN
example/NN
,/,
crowed/VBN
about/IN
their/PRP$
first-ever/JJ
Tokyo/NNP
Grand/NNP
Prix/NNP
racing/VBG
victory/NN
./.
True/JJ
,/,
Ford/NNP
was/VBD
declared/VBN
the/DT
winner/NN
Sunday/NNP
,/,
but/CC
only/RB
after/IN
the/DT
Honda/NNP
driver/NN
who/WP
crossed/VBD
the/DT
finish/NN
line/NN
first/RB
was/VBD
disqualified/VBN
because/IN
it/PRP
hit/VBD
another/DT
car/NN
and/CC
skid/VBD
momentarily/RB
out/IN
of/IN
bounds/NNS
./.
Mr./NNP
Jordan/NNP
of/IN
GM/NNP
,/,
meanwhile/RB
,/,
still/RB
criticizes/VBZ
Japanese/JJ
styling/NN
./.
``/``
It/PRP
's/VBZ
hard/JJ
for/IN
the/DT
Japanese/NNP
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
to/TO
get/VB
a/DT
feeling/NN
in/IN
a/DT
car/NN
,/,
to/TO
get/VB
a/DT
passion/NN
in/IN
a/DT
car/NN
,/,
to/TO
get/VB
emotion/NN
in/IN
a/DT
car/NN
./.
''/''
Regarding/VBG
your/PRP$
Sept./NNP
28/CD
Politics/NNP
&/CC
Policy/NNP
column/NN
on/IN
the/DT
party/NN
differences/NNS
over/IN
cutting/VBG
capital/NN
gains/NNS
or/CC
expanding/VBG
IRAs/NNS
:/:
Why/WRB
not/RB
compromise/VB
now/RB
and/CC
save/VB
the/DT
public/NN
from/IN
the/DT
coming/VBG
infantile/JJ
congressional/JJ
political/JJ
rhetoric/NN
that/WDT
seems/VBZ
to/TO
go/VB
hand/NN
in/IN
hand/NN
with/IN
the/DT
process/NN
?/.
The/DT
Republicans/NNPS
maintain/VBP
that/IN
a/DT
30/CD
%/NN
capital-gains/JJ
exclusion/NN
will/MD
raise/VB
revenue/NN
in/IN
the/DT
short/JJ
term/NN
and/CC
spur/VB
economic/JJ
investment/NN
,/,
while/IN
the/DT
Democrats/NNPS
maintain/VBP
that/IN
an/DT
increase/NN
in/IN
the/DT
top/JJ
income-tax/NN
rate/NN
and/CC
expanded/VBN
IRAs/NNS
will/MD
raise/VB
revenue/NN
and/CC
spur/VB
savings/NNS
./.
This/DT
is/VBZ
a/DT
classic/JJ
example/NN
of/IN
the/DT
old/JJ
saying/NN
,/,
``/``
The/DT
whole/NN
is/VBZ
greater/JJR
than/IN
the/DT
sum/NN
of/IN
its/PRP$
parts/NNS
./.
''/''
It/PRP
's/VBZ
ridiculous/JJ
for/IN
a/DT
family/NN
with/IN
taxable/JJ
income/NN
of/IN
$/$
50,000/CD
to/TO
pay/VB
the/DT
same/JJ
28/CD
%/NN
incremental/JJ
tax/NN
rate/NN
as/IN
a/DT
family/NN
with/IN
taxable/JJ
income/NN
of/IN
$/$
250,000/CD
./.
The/DT
33/CD
%/NN
bracket/NN
should/MD
apply/VB
to/TO
all/DT
income/NN
over/IN
the/DT
applicable/JJ
level/NN
,/,
not/RB
just/RB
the/DT
5/CD
%/NN
rate/NN
adjustment/NN
amount/NN
./.
It/PRP
's/VBZ
equally/RB
ridiculous/JJ
not/RB
to/TO
provide/VB
a/DT
capital/NN
investment/NN
or/CC
retirement-savings/JJ
tax/NN
incentive/NN
./.
Jeffrey/NNP
T./NNP
Schmidlin/NNP
Cincinnati/NNP
PWA/NNP
Corp./NNP
said/VBD
it/PRP
plans/VBZ
to/TO
sell/VB
by/IN
spring/NN
1992/CD
all/DT
15/CD
passenger/NN
planes/NNS
it/PRP
acquired/VBD
earlier/RBR
this/DT
year/NN
in/IN
its/PRP$
248/CD
million/CD
Canadian/JJ
dollar/NN
US$/$
211.6/CD
million/CD
purchase/NN
of/IN
Wardair/NNP
Inc/NNP
./.
PWA/NNP
,/,
which/WDT
recently/RB
merged/VBD
Wardair/NNP
's/POS
operations/NNS
with/IN
those/DT
of/IN
PWA-owned/JJ
Canadian/NNP
Airlines/NNPS
International/NNP
Ltd./NNP
,/,
Canada/NNP
's/POS
second-biggest/JJ
airline/NN
,/,
said/VBD
the/DT
proposed/VBN
sale/NN
is/VBZ
part/NN
of/IN
a/DT
revised/VBN
five-year/JJ
plan/NN
aimed/VBN
at/IN
streamlining/VBG
its/PRP$
fleet/NN
and/CC
shedding/VBG
debt/NN
./.
PWA/NNP
would/MD
n't/RB
estimate/VB
the/DT
value/NN
of/IN
Wardair/NNP
's/POS
aircraft/NN
,/,
which/WDT
include/VBP
12/CD
Airbus/NNP
A310-300s/NNP
and/CC
three/CD
Boeing/NNP
747-100s/CD
./.
But/CC
James/NNP
Ireland/NNP
,/,
a/DT
Miami-based/JJ
technical/JJ
analyst/NN
with/IN
Avmark/NNP
Inc./NNP
,/,
an/DT
aircraft/NN
evaluation/NN
firm/NN
,/,
estimated/VBD
the/DT
total/JJ
``/``
half-life/NN
''/''
value/NN
of/IN
the/DT
15/CD
planes/NNS
at/IN
about/IN
$/$
650/CD
million/CD
or/CC
more/JJR
./.
Mr./NNP
Ireland/NNP
said/VBD
11/CD
DC10-30/NN
aircraft/NN
that/IN
PWA/NNP
also/RB
said/VBD
it/PRP
plans/VBZ
to/TO
sell/VB
,/,
beginning/VBG
in/IN
1992/CD
,/,
have/VBP
a/DT
current/JJ
half-life/NN
value/NN
of/IN
about/IN
$/$
34/CD
million/CD
each/DT
,/,
or/CC
a/DT
total/JJ
$/$
374/CD
million/CD
,/,
raising/VBG
aggregate/JJ
potential/JJ
proceeds/NNS
from/IN
the/DT
aircraft/NN
sale/NN
to/TO
about/IN
$/$
1.02/CD
billion/CD
./.
Mr./NNP
Ireland/NNP
said/VBD
current/JJ
demand/NN
for/IN
used/VBN
aircraft/NN
is/VBZ
strong/JJ
,/,
partly/RB
because/IN
surging/VBG
orders/NNS
for/IN
new/JJ
aircraft/NNS
have/VBP
lengthened/VBN
waiting/NN
lists/NNS
./.
He/PRP
predicted/VBD
that/IN
PWA/NNP
would/MD
have/VB
little/JJ
difficulty/NN
attracting/VBG
prospective/JJ
buyers/NNS
./.
Under/IN
its/PRP$
revised/VBN
fleet/NN
plan/NN
,/,
PWA/NNP
said/VBD
it/PRP
will/MD
also/RB
increase/VB
its/PRP$
existing/VBG
fleet/NN
of/IN
eight/CD
Boeing/NNP
767-300ER/NNP
aircraft/NN
to/TO
18/CD
by/IN
1994/CD
,/,
and/CC
add/VB
four/CD
more/JJR
Boeing/NNP
747-400s/CD
by/IN
1994/CD
to/TO
the/DT
two/CD
units/NNS
that/IN
it/PRP
previously/RB
planned/VBD
to/TO
add/VB
by/IN
next/JJ
year/NN
./.
PWA/NNP
said/VBD
two/CD
of/IN
the/DT
Boeing/NNP
767-300ER/NNP
aircraft/NN
scheduled/VBN
for/IN
delivery/NN
in/IN
1990/CD
would/MD
be/VB
leased/VBN
out/IN
for/IN
two/CD
to/TO
five/CD
years/NNS
./.
PWA/NNP
did/VBD
n't/RB
disclose/VB
the/DT
expected/VBN
net/NN
cost/NN
of/IN
the/DT
fleet/NN
overhaul/NN
,/,
but/CC
a/DT
Toronto-based/JJ
analyst/NN
estimated/VBD
it/PRP
at/IN
about/IN
$/$
450/CD
million/CD
(/(
US/NNP
replacement/NN
costs/NNS
for/IN
the/DT
11/CD
DC10-30/NN
aircraft/NN
that/IN
PWA/NNP
plans/VBZ
to/TO
sell/VB
,/,
and/CC
purchase/NN
costs/NNS
for/IN
as/RB
many/JJ
as/IN
17/CD
Airbus/NNP
320-200/CD
aircraft/NN
that/IN
PWA/NNP
previously/RB
ordered/VBD
./.
``/``
I/PRP
do/VBP
n't/RB
see/VB
this/DT
as/IN
a/DT
debt/NN
reduction/NN
exercise/NN
./.
It/PRP
's/VBZ
focused/VBN
on/IN
streamlining/VBG
''/''
PWA/NNP
's/POS
fleet/NN
in/IN
a/DT
bid/NN
to/TO
cut/VB
training/NN
and/CC
aircraft/NN
servicing/NN
costs/NNS
,/,
the/DT
analyst/NN
said/VBD
./.
PWA/NNP
's/POS
long-term/JJ
debt/NN
and/CC
capital/NN
lease/NN
obligations/NNS
rose/VBD
to/TO
C$/$
1.24/CD
billion/CD
at/IN
the/DT
end/NN
of/IN
the/DT
second/JJ
quarter/NN
,/,
nearly/RB
double/RB
the/DT
year-earlier/JJ
figure/NN
,/,
reflecting/VBG
debt/NN
absorbed/VBN
under/IN
the/DT
Wardair/NNP
purchase/NN
./.
PWA/NNP
said/VBD
it/PRP
also/RB
expects/VBZ
to/TO
announce/VB
by/IN
Tuesday/NNP
whether/IN
it/PRP
will/MD
take/VB
delivery/NN
of/IN
all/DT
17/CD
Airbus/NNP
320-200/CD
aircraft/NN
it/PRP
previously/RB
ordered/VBD
./.
The/DT
first/JJ
five/CD
leased/VBN
units/NNS
were/VBD
to/TO
be/VB
delivered/VBN
in/IN
1991/CD
./.
This/DT
British/JJ
banking/NN
and/CC
financial-services/NNS
group/NN
's/POS
investment-banking/NN
arm/NN
,/,
Barclays/NNP
de/NNP
Zoete/NNP
Wedd/NNP
Group/NNP
,/,
announced/VBD
the/DT
following/VBG
appointments/NNS
at/IN
its/PRP$
merchant-banking/NN
subsidiary/NN
Barclays/NNP
de/NNP
Zoete/NNP
Wedd/NNP
Ltd/NNP
./.
John/NNP
Padovan/NNP
,/,
51/CD
years/NNS
old/JJ
,/,
was/VBD
named/VBN
a/DT
deputy/NN
chairman/NN
./.
Mr./NNP
Padovan/NNP
is/VBZ
currently/RB
a/DT
director/NN
at/IN
Barclays/NNP
de/NNP
Zoete/NNP
Wedd/NNP
Ltd/NNP
./.
Graham/NNP
Pimlott/NNP
,/,
40/CD
,/,
was/VBD
named/VBN
to/TO
the/DT
new/JJ
post/NN
of/IN
chief/NN
executive/JJ
officer/NN
of/IN
the/DT
merchant-banking/NN
corporate-finance/JJ
division/NN
./.
Callum/NNP
McCarthy/NNP
,/,
45/CD
,/,
was/VBD
named/VBN
to/TO
the/DT
new/JJ
post/NN
of/IN
deputy/JJ
head/NN
of/IN
the/DT
corporate-finance/JJ
division/NN
and/CC
a/DT
managing/VBG
director/NN
./.
Mr./NNP
Pimlott/NNP
and/CC
Mr./NNP
McCarthy/NNP
join/VBP
Barclay/NNP
's/POS
from/IN
Kleinwort/NNP
Benson/NNP
Ltd./NNP
where/WRB
they/PRP
served/VBD
as/IN
directors/NNS
./.
The/DT
recent/JJ
bids/NNS
for/IN
United/NNP
and/CC
American/NNP
Airlines/NNPS
have/VBP
led/VBN
Congress/NNP
to/TO
move/VB
with/IN
supersonic/JJ
speed/NN
to/TO
protect/VB
incumbent/JJ
airline/NN
managements/NNS
./.
The/DT
House/NNP
is/VBZ
scheduled/VBN
to/TO
vote/VB
today/NN
on/IN
an/DT
anti-airline-takeover/JJ
bill/NN
that/WDT
would/MD
block/VB
,/,
for/IN
up/IN
to/TO
50/CD
days/NNS
,/,
any/DT
bid/NN
for/IN
15/CD
%/NN
or/CC
more/JJR
of/IN
a/DT
U.S./NNP
airline/NN
,/,
even/RB
a/DT
straight/JJ
cash/NN
purchase/NN
./.
Transportation/NNP
Secretary/NNP
Sam/NNP
Skinner/NNP
,/,
who/WP
earlier/RBR
fueled/VBD
the/DT
anti-takeover/JJ
fires/NNS
with/IN
his/PRP$
quasi-xenophobic/JJ
attacks/NNS
on/IN
foreign/JJ
investment/NN
in/IN
U.S./NNP
carriers/NNS
,/,
now/RB
says/VBZ
the/DT
bill/NN
would/MD
further/RB
disturb/VB
the/DT
jittery/JJ
capital/NN
markets/NNS
./.
Texas/NNP
Rep./NNP
Steve/NNP
Bartlett/NNP
,/,
who/WP
has/VBZ
40,000/CD
American/NNP
Airlines/NNPS
workers/NNS
in/IN
his/PRP$
district/NN
,/,
says/VBZ
the/DT
bill/NN
is/VBZ
``/``
good/JJ
politics/NNS
,/,
but/CC
bad/JJ
law/NN
./.
''/''
It/PRP
is/VBZ
ironic/JJ
that/IN
at/IN
a/DT
time/NN
when/WRB
America/NNP
's/POS
partial/JJ
airline/NN
deregulation/NN
is/VBZ
being/VBG
emulated/VBN
by/IN
governments/NNS
from/IN
New/NNP
Zealand/NNP
to/TO
Ethiopia/NNP
,/,
so/RB
many/JJ
in/IN
Congress/NNP
favor/VBP
an/DT
incumbent-protection/JJ
program/NN
for/IN
airlines/NNS
that/WDT
would/MD
be/VB
more/RBR
appropriate/JJ
for/IN
the/DT
Soviet/JJ
airline/NN
,/,
Aeroflot/NNP
./.
Federal/NNP
Reserve/NNP
Chairman/NNP
Alan/NNP
Greenspan/NNP
told/VBD
Congress/NNP
that/IN
the/DT
Fed/NNP
can/MD
wipe/VB
out/IN
inflation/NN
without/IN
causing/VBG
a/DT
recession/NN
,/,
but/CC
he/PRP
said/VBD
doing/VBG
so/RB
will/MD
inflict/VB
some/DT
short-term/JJ
pain/NN
and/CC
will/MD
require/VB
reducing/VBG
the/DT
federal/JJ
deficit/NN
sharply/RB
./.
Mr./NNP
Greenspan/NNP
said/VBD
he/PRP
and/CC
other/JJ
Fed/NNP
governors/NNS
endorse/VBP
a/DT
bill/NN
by/IN
Rep./NNP
Stephen/NNP
Neal/NNP
D./NNP
,/,
N.C./NNP
that/WDT
would/MD
require/VB
the/DT
Fed/NNP
to/TO
pursue/VB
policies/NNS
aimed/VBN
at/IN
eliminating/VBG
inflation/NN
within/IN
five/CD
years/NNS
./.
``/``
Such/PDT
a/DT
deadline/NN
is/VBZ
attainable/JJ
,/,
but/CC
it/PRP
would/MD
have/VB
costs/NNS
,/,
''/''
Mr./NNP
Greenspan/NNP
told/VBD
Rep./NNP
Neal/NNP
's/POS
monetary/JJ
policy/NN
subcommittee/NN
./.
The/DT
Fed/NNP
chief/NN
opposed/VBD
a/DT
bill/NN
-/:
introduced/VBN
by/IN
Reps./NNPS
Lee/NNP
Hamilton/NNP
D./NNP
,/,
Ind./NNP
Byron/NNP
Dorgan/NNP
D./NNP
,/,
N.D./NNP
other/JJ
things/NNS
,/,
would/MD
require/VB
the/DT
Fed/NNP
to/TO
disclose/VB
all/DT
monetary/JJ
policy/NN
moves/NNS
immediately/RB
and/CC
increase/VB
outside/JJ
scrutiny/NN
of/IN
the/DT
Fed/NNP
./.
In/IN
responding/VBG
to/TO
questions/NNS
,/,
Mr./NNP
Greenspan/NNP
played/VBD
down/IN
reports/NNS
of/IN
tension/NN
between/IN
the/DT
Fed/NNP
and/CC
the/DT
Treasury/NNP
over/IN
exchange-rate/NN
policy/NN
./.
``/``
What/WP
seem/VBP
to/TO
be/VB
interpreted/VBN
as/IN
great/JJ
conflicts/NNS
are/VBP
relatively/RB
minor/JJ
issues/NNS
of/IN
tactics/NNS
,/,
''/''
he/PRP
said/VBD
./.
He/PRP
did/VBD
n't/RB
elaborate/JJ
./.
But/CC
the/DT
Fed/NNP
is/VBZ
n't/RB
enthusiastic/JJ
about/IN
Treasury/NNP
efforts/NNS
to/TO
bring/VB
down/IN
the/DT
value/NN
of/IN
the/DT
dollar/NN
through/IN
intervention/NN
in/IN
foreign-exchange/JJ
markets/NNS
,/,
and/CC
the/DT
Treasury/NNP
is/VBZ
frustrated/VBN
at/IN
the/DT
Fed/NNP
's/POS
reluctance/NN
to/TO
cut/VB
interest/NN
rates/NNS
to/TO
pull/VB
down/IN
the/DT
dollar/NN
's/POS
value/NN
./.
Mr./NNP
Greenspan/NNP
said/VBD
the/DT
inflation/NN
rate/NN
,/,
currently/RB
about/IN
4/CD
1\/2/CD
%/NN
,/,
``/``
could/MD
be/VB
brought/VBN
down/IN
to/TO
levels/NNS
which/WDT
are/VBP
close/JJ
to/TO
zero/CD
without/IN
putting/VBG
the/DT
economy/NN
into/IN
a/DT
recession/NN
,/,
but/CC
I/PRP
do/VBP
suspect/VB
that/IN
there/EX
might/MD
be/VB
some/DT
modest/JJ
loss/NN
of/IN
economic/JJ
output/NN
./.
''/''
In/IN
other/JJ
words/NNS
,/,
economic/JJ
growth/NN
would/MD
be/VB
lower/JJR
and/CC
unemployment/NN
would/MD
be/VB
higher/JJR
for/IN
a/DT
few/JJ
years/NNS
./.
But/CC
Mr./NNP
Greenspan/NNP
,/,
who/WP
has/VBZ
repeatedly/RB
said/VBN
the/DT
Fed/NNP
's/POS
goal/NN
is/VBZ
to/TO
reduce/VB
inflation/NN
,/,
added/VBD
that/IN
``/``
whatever/WDT
losses/NNS
are/VBP
incurred/VBN
in/IN
the/DT
pursuing/NN
of/IN
price/NN
stability/NN
would/MD
surely/RB
be/VB
more/JJR
than/IN
made/VBN
up/IN
in/IN
increased/VBN
output/NN
thereafter/RB
./.
''/''
He/PRP
warned/VBD
that/IN
Fed/NNP
efforts/NNS
to/TO
conquer/VB
inflation/NN
would/MD
fail/VB
--/:
and/CC
could/MD
produce/VB
``/``
a/DT
major/JJ
financial/JJ
crunch/NN
''/''
--/:
unless/IN
they/PRP
are/VBP
accompanied/VBN
by/IN
a/DT
significant/JJ
reduction/NN
in/IN
the/DT
federal/JJ
deficit/NN
,/,
which/WDT
causes/VBZ
the/DT
government/NN
to/TO
borrow/VB
heavily/RB
./.
Rep./NNP
Neal/NNP
's/POS
bill/NN
originally/RB
called/VBD
on/IN
the/DT
Fed/NNP
to/TO
reduce/VB
the/DT
inflation/NN
rate/NN
by/IN
one/CD
percentage/NN
point/NN
a/DT
year/NN
for/IN
five/CD
years/NNS
and/CC
to/TO
maintain/VB
a/DT
zero/CD
inflation/NN
rate/NN
thereafter/RB
./.
He/PRP
altered/VBD
the/DT
wording/NN
to/TO
win/VB
Mr./NNP
Greenspan/NNP
's/POS
endorsement/NN
./.
Even/RB
so/RB
,/,
his/PRP$
bill/NN
is/VBZ
given/VBN
little/JJ
chance/NN
of/IN
passage/NN
./.
Reps./NNP
Hamilton/NNP
and/CC
Dorgan/NNP
also/RB
have/VBP
altered/VBN
their/PRP$
bill/NN
,/,
dropping/VBG
a/DT
proposal/NN
to/TO
add/VB
the/DT
Treasury/NNP
secretary/NN
to/TO
the/DT
12-member/JJ
Fed/NNP
committee/NN
that/WDT
makes/VBZ
monetary/JJ
policy/NN
./.
Instead/RB
,/,
the/DT
bill/NN
simply/RB
calls/VBZ
for/IN
twice-a-year/JJ
meetings/NNS
between/IN
the/DT
committee/NN
and/CC
top/JJ
administration/NN
officials/NNS
./.
Even/RB
that/DT
met/VBD
with/IN
Mr./NNP
Greenspan/NNP
's/POS
disapproval/NN
because/IN
it/PRP
might/MD
subject/VB
the/DT
Fed/NNP
``/``
to/TO
a/DT
more/RBR
intensely/RB
political/JJ
perspective/NN
''/''
and/CC
``/``
could/MD
risk/VB
bending/VBG
monetary/JJ
policy/NN
away/RB
from/IN
long-term/JJ
strategic/JJ
goals/NNS
./.
''/''
While/IN
each/DT
of/IN
the/DT
Hamilton-Dorgan/NNP
proposals/NNS
represents/VBZ
only/RB
a/DT
small/JJ
step/NN
,/,
together/RB
they/PRP
would/MD
erode/VB
the/DT
Fed/NNP
's/POS
independence/NN
,/,
Mr./NNP
Greenspan/NNP
said/VBD
./.
Mr./NNP
Greenspan/NNP
also/RB
said/VBD
that/IN
although/IN
he/PRP
favors/VBZ
cutting/VBG
capital-gains/NNS
taxes/NNS
as/IN
sound/JJ
economic/JJ
policy/NN
,/,
he/PRP
would/MD
oppose/VB
such/PDT
a/DT
move/NN
if/IN
it/PRP
would/MD
undo/VB
the/DT
political/JJ
compromise/NN
embodied/VBN
in/IN
the/DT
Tax/NNP
Reform/NNP
Act/NNP
of/IN
1986/CD
and/CC
result/VB
in/IN
higher/JJR
marginal/JJ
income/NN
tax/NN
rates/NNS
./.
Sears/NNP
,/,
Roebuck/NNP
&/CC
Co./NNP
signed/VBD
a/DT
contract/NN
with/IN
Bob/NNP
Vila/NNP
,/,
the/DT
former/JJ
host/NN
of/IN
the/DT
popular/JJ
public/JJ
television/NN
program/NN
``/``
This/NNP
Old/NNP
House/NNP
,/,
''/''
to/TO
star/VB
in/IN
a/DT
half-hour/JJ
home/NN
improvement/NN
show/NN
sponsored/VBN
by/IN
the/DT
giant/JJ
retailer/NN
./.
The/DT
do-it-yourself/JJ
show/NN
,/,
slated/VBN
to/TO
start/VB
airing/VBG
by/IN
June/NNP
1990/CD
,/,
marks/VBZ
Sears/NNP
's/POS
entry/NN
into/IN
the/DT
burgeoning/VBG
market/NN
of/IN
home/NN
repair/NN
television/NN
programs/NNS
and/CC
could/MD
bolster/VB
sales/NNS
of/IN
its/PRP$
home/NN
improvement/NN
products/NNS
./.
In/IN
recent/JJ
months/NNS
,/,
sales/NNS
of/IN
home/NN
improvement/NN
items/NNS
have/VBP
sagged/VBN
,/,
along/IN
with/IN
sales/NNS
of/IN
other/JJ
big/JJ
ticket/NN
durable/JJ
goods/NNS
./.
The/DT
show/NN
also/RB
signals/VBZ
Mr./NNP
Vila/NNP
's/POS
return/NN
as/IN
a/DT
television/NN
celebrity/NN
./.
Earlier/RBR
this/DT
year/NN
,/,
public/JJ
television/NN
station/NN
WGBH/NNP
in/IN
Boston/NNP
fired/VBD
Mr./NNP
Vila/NNP
after/IN
a/DT
sponsor/NN
protested/VBD
some/DT
of/IN
his/PRP$
numerous/JJ
commercial/JJ
endorsements/NNS
./.
With/IN
Mr./NNP
Vila/NNP
as/IN
host/NN
,/,
``/``
This/NNP
Old/NNP
House/NNP
''/''
became/VBD
one/CD
of/IN
the/DT
Public/NNP
Broadcasting/NNP
Service/NNP
's/POS
top/JJ
10/CD
programs/NNS
,/,
airing/VBG
weekly/RB
on/IN
about/IN
300/CD
of/IN
the/DT
network/NN
's/POS
stations/NNS
and/CC
seen/VBN
by/IN
an/DT
average/NN
of/IN
12/CD
million/CD
viewers/NNS
./.
But/CC
Home/NNP
Depot/NNP
Inc./NNP
,/,
an/DT
Atlanta-based/JJ
home/NN
center/NN
chain/NN
,/,
objected/VBD
when/WRB
Mr./NNP
Vila/NNP
started/VBD
doing/VBG
commercial/JJ
endorsements/NNS
for/IN
Rickel/NNP
Home/NNP
Centers/NNPS
,/,
a/DT
New/NNP
Jersey/NNP
building/NN
supply/NN
company/NN
that/WDT
competes/VBZ
with/IN
Home/NNP
Depot/NNP
in/IN
some/DT
markets/NNS
./.
``/``
I/PRP
'm/VBP
ecstatic/JJ
about/IN
the/DT
change/NN
,/,
''/''
said/VBD
Mr./NNP
Vila/NNP
,/,
whose/WP$
new/JJ
syndicated/VBN
program/NN
is/VBZ
called/VBN
``/``
Home/NNP
Again/NNP
with/IN
Bob/NNP
Vila/NNP
./.
''/''
In/IN
an/DT
interview/NN
,/,
Mr./NNP
Vila/NNP
criticized/VBD
his/PRP$
old/JJ
show/NN
,/,
which/WDT
is/VBZ
continuing/VBG
with/IN
a/DT
new/JJ
host/NN
./.
``/``
Public/NNP
TV/NNP
is/VBZ
in/IN
fantasy/NN
land/NN
,/,
''/''
he/PRP
said/VBD
./.
``/``
Last/JJ
season/NN
,/,
we/PRP
did/VBD
a/DT
story/NN
that/WDT
involved/VBD
spending/VBG
$/$
700,000/CD
in/IN
converting/VBG
a/DT
two-family/JJ
house/NN
into/IN
a/DT
bed/NN
and/CC
breakfast/NN
./.
''/''
In/IN
the/DT
new/JJ
show/NN
,/,
he/PRP
said/VBD
,/,
``/``
we/PRP
're/VBP
going/VBG
to/TO
spend/VB
$/$
60,000/CD
building/VBG
a/DT
start-up/JJ
house/NN
''/''
for/IN
a/DT
young/JJ
couple/NN
./.
While/IN
Sears/NNP
would/MD
n't/RB
comment/VB
on/IN
the/DT
brouhaha/NN
over/IN
Mr./NNP
Vila/NNP
's/POS
commercial/JJ
endorsements/NNS
,/,
it/PRP
appears/VBZ
to/TO
be/VB
building/VBG
a/DT
fence/NN
around/IN
Mr./NNP
Vila/NNP
's/POS
affections/NNS
./.
His/PRP$
contract/NN
makes/VBZ
him/PRP
``/``
exclusive/JJ
''/''
spokesman/NN
for/IN
Sears/NNP
's/POS
home/NN
improvement/NN
marketing/NN
campaigns/NNS
./.
Ogilvy/NNP
&/CC
Mather/NNP
in/IN
Chicago/NNP
,/,
a/DT
unit/NN
of/IN
WPP/NNP
Group/NNP
PLC/NNP
,/,
will/MD
handle/VB
the/DT
advertising/NN
account/NN
and/CC
syndication/NN
./.
The/DT
only/JJ
other/JJ
endorsement/NN
permitted/VBN
by/IN
the/DT
contract/NN
involves/VBZ
a/DT
series/NN
of/IN
Time-Life/NNP
home/NN
improvement/NN
and/CC
repair/NN
books/NNS
./.
His/PRP$
other/JJ
agreements/NNS
to/TO
promote/VB
products/NNS
have/VBP
expired/VBN
./.
Little/JJ
matter/NN
for/IN
Mr./NNP
Vila/NNP
,/,
who/WP
complains/VBZ
that/IN
``/``
public/JJ
TV/NN
never/RB
paid/VBD
me/PRP
more/JJR
than/IN
$/$
40,000/CD
a/DT
year/NN
./.
''/''
He/PRP
said/VBD
his/PRP$
compensation/NN
under/IN
the/DT
Sears/NNP
contract/NN
is/VBZ
``/``
a/DT
multimillion/NN
dollar/NN
deal/NN
./.
''/''
Eugene/NNP
A./NNP
Miller/NNP
,/,
52/CD
years/NNS
old/JJ
,/,
was/VBD
elected/VBN
a/DT
director/NN
of/IN
this/DT
electric/JJ
utility/NN
company/NN
,/,
filling/VBG
a/DT
vacancy/NN
./.
He/PRP
is/VBZ
president/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
Comerica/NNP
Inc./NNP
in/IN
Detroit/NNP
./.
The/DT
White/NNP
House/NNP
has/VBZ
decided/VBN
to/TO
push/VB
for/IN
changes/NNS
in/IN
pesticide/NN
law/NN
that/WDT
are/VBP
designed/VBN
to/TO
speed/VB
the/DT
removal/NN
of/IN
harmful/JJ
chemicals/NNS
from/IN
the/DT
nation/NN
's/POS
food/NN
supply/NN
./.
The/DT
proposed/VBN
changes/NNS
,/,
which/WDT
are/VBP
scheduled/VBN
to/TO
be/VB
announced/VBN
today/NN
,/,
would/MD
apply/VB
to/TO
pesticides/NNS
and/CC
other/JJ
substances/NNS
found/VBN
on/IN
fresh/JJ
and/CC
processed/VBN
foods/NNS
,/,
according/VBG
to/TO
federal/JJ
officials/NNS
./.
Environmental/JJ
groups/NNS
have/VBP
been/VBN
calling/VBG
for/IN
faster/JJR
action/NN
on/IN
dangerous/JJ
pesticides/NNS
and/CC
may/MD
welcome/VB
part/NN
of/IN
the/DT
proposal/NN
./.
But/CC
they/PRP
are/VBP
already/RB
objecting/VBG
to/TO
,/,
among/IN
other/JJ
things/NNS
,/,
a/DT
plan/NN
to/TO
give/VB
more/JJR
weight/NN
to/TO
cost-benefit/JJ
considerations/NNS
in/IN
evaluating/VBG
pesticides/NNS
./.
``/``
It/PRP
's/VBZ
a/DT
tremendous/JJ
disappointment/NN
,/,
''/''
said/VBD
Janet/NNP
Hathaway/NNP
,/,
an/DT
attorney/NN
with/IN
the/DT
Natural/NNP
Resources/NNPS
Defense/NNP
Council/NNP
./.
``/``
Allowing/VBG
the/DT
EPA/NNP
to/TO
condone/VB
continued/VBN
use/NN
of/IN
a/DT
chemical/NN
whenever/WRB
the/DT
benefits/NNS
outweigh/VBP
the/DT
risks/NNS
is/VBZ
absolutely/RB
anathema/NN
to/TO
the/DT
environmental/JJ
community/NN
./.
''/''
The/DT
Bush/NNP
administration/NN
plans/VBZ
to/TO
announce/VB
a/DT
series/NN
of/IN
principles/NNS
and/CC
to/TO
work/VB
with/IN
congressional/JJ
leaders/NNS
in/IN
writing/VBG
specific/JJ
legislative/JJ
proposals/NNS
that/WDT
embody/VBP
them/PRP
./.
The/DT
principles/NNS
would/MD
give/VB
the/DT
Environmental/NNP
Protection/NNP
Agency/NNP
increased/VBN
authority/NN
and/CC
flexibility/NN
in/IN
regulating/VBG
pesticides/NNS
,/,
with/IN
the/DT
aim/NN
of/IN
enabling/VBG
the/DT
agency/NN
to/TO
move/VB
more/RBR
quickly/RB
./.
There/EX
already/RB
are/VBP
proposals/NNS
pending/VBG
in/IN
Congress/NNP
to/TO
overhaul/VB
pesticide/NN
law/NN
./.
Moves/NNS
to/TO
accelerate/VB
the/DT
removal/NN
of/IN
dangerous/JJ
pesticides/NNS
gained/VBD
new/JJ
impetus/NN
during/IN
this/DT
year/NN
's/POS
Alar/NNP
scare/NN
,/,
when/WRB
the/DT
EPA/NNP
was/VBD
harshly/RB
criticized/VBN
for/IN
failing/VBG
to/TO
yank/VB
the/DT
possible/JJ
carcinogen/NN
,/,
a/DT
growth/NN
regulator/NN
used/VBN
to/TO
make/VB
apples/NNS
redder/JJR
and/CC
crunchier/JJR
./.
The/DT
agency/NN
has/VBZ
since/IN
acted/VBN
to/TO
remove/VB
Alar/NNP
from/IN
the/DT
nation/NN
's/POS
grocery/NN
shelves/NNS
by/IN
May/NNP
31/CD
,/,
1991/CD
,/,
and/CC
the/DT
apple/NN
industry/NN
has/VBZ
said/VBN
that/IN
growers/NNS
already/RB
have/VBP
stopped/VBN
using/VBG
the/DT
chemical/NN
./.
In/IN
addition/NN
,/,
the/DT
principles/NNS
attempt/VBP
to/TO
eliminate/VB
the/DT
so-called/JJ
Delaney/NNP
Paradox/NNP
./.
Under/IN
the/DT
Delaney/NNP
clause/NN
,/,
which/WDT
applies/VBZ
to/TO
processed/VBN
food/NN
,/,
a/DT
chemical/NN
is/VBZ
banned/VBN
if/IN
it/PRP
causes/VBZ
cancer/NN
in/IN
laboratory/NN
animals/NNS
./.
Under/IN
other/JJ
laws/NNS
applying/VBG
to/TO
pesticide/NN
use/NN
,/,
however/RB
,/,
that/DT
same/JJ
chemical/NN
could/MD
be/VB
allowed/VBN
to/TO
be/VB
used/VBN
on/IN
fresh/JJ
food/NN
if/IN
it/PRP
fell/VBD
within/IN
the/DT
EPA/NNP
's/POS
tolerance/NN
level/NN
./.
Among/IN
other/JJ
changes/NNS
,/,
the/DT
White/NNP
House/NNP
wants/VBZ
to/TO
:/:
--/:
Give/VB
the/DT
EPA/NNP
more/JJR
flexibility/NN
to/TO
declare/VB
a/DT
pesticide/NN
an/DT
imminent/JJ
hazard/NN
and/CC
pull/VB
it/PRP
from/IN
the/DT
marketplace/NN
./.
--/:
Speed/VB
up/RP
the/DT
process/NN
for/IN
removing/VBG
a/DT
pesticide/NN
that/WDT
is/VBZ
n't/RB
an/DT
imminent/JJ
hazard/NN
./.
--/:
Bar/VB
states/NNS
from/IN
setting/VBG
more/RBR
stringent/JJ
tolerance/NN
levels/NNS
for/IN
a/DT
pesticide/NN
once/IN
the/DT
federal/JJ
government/NN
has/VBZ
set/VBN
a/DT
standard/NN
./.
--/:
Give/VB
the/DT
EPA/NNP
added/VBN
discretion/NN
to/TO
set/VB
``/``
negligible/JJ
risk/NN
''/''
levels/NNS
for/IN
pesticide/NN
residues/NNS
in/IN
processed/VBN
food/NN
./.
Chemicals/NNS
that/WDT
exceed/VBP
these/DT
risk/NN
levels/NNS
would/MD
be/VB
barred/VBN
,/,
but/CC
those/DT
that/WDT
fall/VBP
below/IN
these/DT
levels/NNS
would/MD
be/VB
allowed/VBN
./.
--/:
Allow/VB
the/DT
EPA/NNP
to/TO
permit/VB
the/DT
continued/VBN
use/NN
of/IN
pesticides/NNS
that/WDT
exceed/VBP
its/PRP$
negligible/JJ
risk/NN
standard/NN
if/IN
the/DT
benefits/NNS
of/IN
doing/VBG
so/RB
outweigh/VB
the/DT
cost/NN
./.
Financial/JJ
markets/NNS
took/VBD
a/DT
midweek/JJ
break/NN
from/IN
their/PRP$
recent/JJ
wild/JJ
gyrations/NNS
with/IN
stock/NN
prices/NNS
falling/VBG
modestly/RB
,/,
bond/NN
prices/NNS
posting/VBG
tiny/JJ
gains/NNS
and/CC
the/DT
dollar/NN
almost/RB
unchanged/JJ
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
lost/VBD
5.94/CD
points/NNS
to/TO
2653.28/CD
in/IN
moderate/JJ
trading/NN
./.
Long-term/JJ
Treasury/NNP

bonds/NNS
rose/VBD
slightly/RB
despite/IN
the/DT
arrival/NN
on/IN
the/DT
market/NN
of/IN
$/$
4.52/CD
billion/CD
in/IN
30-year/JJ
bonds/NNS
offered/VBN
by/IN
the/DT
Resolution/NNP
Funding/NNP
Corp./NNP
as/IN
part/NN
of/IN
the/DT
government/NN
's/POS
bailout/NN
of/IN
the/DT
savings/NNS
and/CC
loan/NN
industry/NN
./.
The/DT
dollar/NN
was/VBD
barely/RB
changed/VBN
against/IN
the/DT
West/JJ
German/JJ
mark/NN
and/CC
up/IN
marginally/RB
against/IN
the/DT
Japanese/JJ
yen/NN
./.
Yesterday/NN
's/POS
sluggish/JJ
action/NN
was/VBD
in/IN
marked/VBN
contrast/NN
to/TO
the/DT
rearing/NN
and/CC
plunging/NN
of/IN
stock/NN
prices/NNS
Tuesday/NNP
after/IN
the/DT
proposed/VBN
buy-out/NN
of/IN
UAL/NNP
Corp./NNP
once/RB
again/RB
collapsed/VBN
./.
Traders/NNS
said/VBD
the/DT
stock/NN
market/NN
's/POS
lurching/VBG
moves/NNS
have/VBP
prompted/VBN
many/JJ
investors/NNS
to/TO
head/VB
for/IN
the/DT
sidelines/NNS
until/IN
it/PRP
regains/VBZ
some/DT
semblance/NN
of/IN
stability/NN
./.
Although/IN
bond/NN
prices/NNS
were/VBD
n't/RB
as/RB
volatile/JJ
on/IN
Tuesday/NNP
trading/NN
as/IN
stock/NN
prices/NNS
,/,
traders/NNS
nevertheless/RB
said/VBD
action/NN
also/RB
was/VBD
much/RB
slower/JJR
yesterday/NN
in/IN
the/DT
Treasury/NNP
market/NN
./.
Bond/NN
investors/NNS
paid/VBD
close/JJ
attention/NN
to/TO
comments/NNS
by/IN
Federal/NNP
Reserve/NNP
Chairman/NNP
Alan/NNP
Greenspan/NNP
,/,
who/WP
was/VBD
testifying/VBG
before/IN
a/DT
congressional/JJ
hearing/NN
,/,
but/CC
were/VBD
n't/RB
able/JJ
to/TO
extract/VB
many/JJ
clues/NNS
about/IN
the/DT
future/JJ
course/NN
of/IN
the/DT
Fed/NNP
's/POS
monetary/JJ
policy/NN
./.
Many/JJ
analysts/NNS
are/VBP
expecting/VBG
the/DT
Fed/NNP
to/TO
lower/VB
interest/NN
rates/NNS
at/IN
least/JJS
once/RB
more/JJR
before/IN
the/DT
end/NN
of/IN
the/DT
year/NN
./.
Investors/NNS
now/RB
are/VBP
awaiting/VBG
today/NN
's/POS
release/NN
of/IN
the/DT
preliminary/JJ
estimate/NN
of/IN
third-quarter/NN
gross/JJ
national/JJ
product/NN
./.
Economists/NNS
predict/VBP
the/DT
report/NN
will/MD
show/VB
economic/JJ
growth/NN
of/IN
about/IN
2.5/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
which/WDT
would/MD
have/VB
little/JJ
effect/NN
on/IN
financial/JJ
markets/NNS
./.
But/CC
an/DT
unexpected/JJ
deviation/NN
either/DT
way/NN
could/MD
roil/VB
bond/NN
and/CC
currency/NN
markets/NNS
./.
In/IN
major/JJ
market/NN
activity/NN
:/:
Stock/NNP
prices/NNS
slipped/VBD
lower/JJR
in/IN
moderate/JJ
trading/NN
./.
Volume/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
totaled/VBD
155.7/CD
million/CD
shares/NNS
./.
But/CC
advancing/VBG
issues/NNS
on/IN
the/DT
Big/NNP
Board/NNP
were/VBD
ahead/RB
of/IN
decliners/NNS
784/CD
to/TO
700/CD
./.
Bond/NN
prices/NNS
inched/VBD
higher/JJR
./.
The/DT
Treasury/NNP
's/POS
benchmark/NN
30-year/JJ
issue/NN
rose/VBD
less/JJR
than/IN
an/DT
eighth/NN
of/IN
a/DT
point/NN
,/,
or/CC
less/JJS
than/IN
$/$
1.25/CD
for/IN
each/DT
$/$
1,000/CD
of/IN
face/NN
amount/NN
./.
The/DT
yield/NN
on/IN
the/DT
issue/NN
stood/VBD
at/IN
7.88/CD
%/NN
./.
The/DT
dollar/NN
was/VBD
virtually/RB
unchanged/JJ
./.
In/IN
late/JJ
New/NNP
York/NNP
trading/NN
the/DT
U.S./NNP
currency/NN
was/VBD
quoted/VBN
at/IN
1.8353/CD
marks/NNS
and/CC
141.52/CD
yen/NN
,/,
compared/VBN
with/IN
1.8355/CD
marks/NNS
and/CC
141.45/CD
yen/NN
Tuesday/NNP
./.
A/DT
few/JJ
years/NNS
ago/IN
,/,
I/PRP
was/VBD
on/IN
a/DT
panel/NN
of/IN
journalists/NNS
that/WDT
discussed/VBD
the/DT
``/``
image/NN
''/''
of/IN
intercollegiate/JJ
athletics/NNS
for/IN
an/DT
audience/NN
of/IN
campus/NN
information/NN
directors/NNS
and/CC
others/NNS
./.
We/PRP
scribblers/NNS
quickly/RB
concurred/VBD
that/IN
not/RB
only/RB
was/VBD
the/DT
bad/JJ
rep/NN
of/IN
big-time/JJ
college/NN
sports/NNS
richly/RB
earned/VBN
,/,
but/CC
also/RB
that/IN
it/PRP
could/MD
be/VB
corrected/VBN
./.
Competition/NN
could/MD
be/VB
maintained/VBN
--/:
and/CC
stadiums/NNS
probably/RB
would/MD
remain/VB
full/JJ
--/:
if/IN
schedules/NNS
were/VBD
reduced/VBN
and/CC
the/DT
games/NNS
returned/VBN
to/TO
the/DT
students/NNS
,/,
we/PRP
said/VBD
./.
Comments/NNS
from/IN
the/DT
audience/NN
reflected/VBD
widespread/JJ
,/,
if/IN
wistful/JJ
,/,
agreement/NN
with/IN
those/DT
conclusions/NNS
./.
As/IN
the/DT
session/NN
broke/VBD
up/IN
,/,
I/PRP
was/VBD
approached/VBN
by/IN
a/DT
man/NN
who/WP
identified/VBD
himself/PRP
as/IN
the/DT
alumni/NNS
director/NN
of/IN
a/DT
Big/NNP
Ten/CD
university/NN
./.
``/``
I/PRP
'd/MD
love/VB
to/TO
see/VB
sports/NNS
cut/VB
back/RB
,/,
and/CC
so/RB
would/MD
a/DT
lot/NN
of/IN
my/PRP$
counterparts/NNS
at/IN
other/JJ
schools/NNS
,/,
but/CC
everybody/NN
's/VBZ
afraid/JJ
to/TO
make/VB
the/DT
first/JJ
move/NN
,/,
''/''
he/PRP
confided/VBD
./.
``/``
It/PRP
's/VBZ
like/IN
the/DT
U.S./NNP
and/CC
the/DT
Russians/NNPS
:/:
Nobody/NN
wants/VBZ
to/TO
disarm/VB
first/RB
./.
''/''
And/CC
so/RB
our/PRP$
institutions/NNS
of/IN
higher/JJR
learning/NN
lurch/VBP
from/IN
scandal/NN
to/TO
scandal/NN
on/IN
gridiron/NN
and/CC
basketball/NN
court/NN
,/,
while/IN
the/DT
casualties/NNS
mount/VBP
./.
Three/CD
new/JJ
books/NNS
make/VBP
the/DT
point/NN
that/IN
one/CD
large/JJ
price/NN
of/IN
the/DT
glittery/NN
college-sports/JJ
show/NN
can/MD
be/VB
the/DT
integrity/NN
of/IN
the/DT
schools/NNS
that/WDT
stage/VBP
it/PRP
./.
They/PRP
are/VBP
:/:
``/``
A/NNP
Payroll/NNP
to/TO
Meet/VB
:/:
A/NNP
Story/NNP
of/IN
Greed/NNP
,/,
Corruption/NNP
and/CC
Football/NNP
at/IN
SMU/NNP
''/''
(/(
Macmillan/NNP
,/,
221/CD
pages/NNS
,/,
$/$
18.95/CD
David/NNP
Whitford/NNP
;/:
``/``
Big/NNP
Red/NNP
Confidential/NNP
:/:
Inside/NNP
Nebraska/NNP
Football/NNP
''/''
(/(
Contemporary/NNP
,/,
231/CD
pages/NNS
,/,
$/$
17.95/CD
Armen/NNP
Keteyian/NNP
;/:
and/CC
``/``
Never/NNP
Too/NNP
Young/NNP
to/TO
Die/VB
:/:
The/NNP
Death/NNP
of/IN
Len/NNP
Bias/NNP
''/''
(/(
Pantheon/NNP
,/,
252/CD
pages/NNS
,/,
$/$
18.95/CD
Lewis/NNP
Cole/NNP
./.
The/DT
pick/NN
of/IN
the/DT
group/NN
is/VBZ
``/``
Payroll/NNP
''/''
;/:
it/PRP
should/MD
be/VB
required/VBN
reading/NN
for/IN
every/DT
college/NN
president/NN
./.
It/PRP
chronicles/VBZ
how/WRB
,/,
over/IN
a/DT
period/NN
of/IN
a/DT
dozen/NN
years/NNS
,/,
Southern/NNP
Methodist/NNP
University/NNP
bought/VBD
its/PRP$
way/NN
to/TO
football/NN
respectability/NN
in/IN
the/DT
Southwest/NNP
Conference/NNP
,/,
only/RB
to/TO
find/VB
itself/PRP
trapped/VBN
and/CC
strangled/VBN
by/IN
the/DT
athlete-payoff/JJ
system/NN
it/PRP
created/VBD
./.
The/DT
school/NN
was/VBD
the/DT
first/JJ
,/,
in/IN
1987/CD
,/,
to/TO
receive/VB
the/DT
NCAA/NNP
's/POS
``/``
death/NN
penalty/NN
''/''
--/:
two/CD
years/NNS
without/IN
football/NN
--/:
for/IN
repeated/VBN
rules/NNS
violations/NNS
./.
Given/VBN
current/JJ
headlines/NNS
about/IN
the/DT
University/NNP
of/IN
Florida/NNP
,/,
it/PRP
may/MD
not/RB
be/VB
the/DT
last/JJ
./.
The/DT
man/NN
who/WP
brought/VBD
the/DT
bribe/NN
to/TO
the/DT
Dallas/NNP
school/NN
was/VBD
Ron/NNP
Meyer/NNP
,/,
a/DT
flashy/JJ
sort/NN
who/WP
came/VBD
in/IN
1975/CD
to/TO
rescue/VB
a/DT
woebegone/JJ
program/NN
,/,
Mr./NNP
Whitford/NNP
writes/VBZ
./.
Mr./NNP
Meyer/NNP
's/POS
personal/JJ
style/NN
was/VBD
illustrated/VBN
by/IN
his/PRP$
pinning/VBG
a/DT
$/$
100/CD
bill/NN
to/TO
a/DT
high-school/NN
bulletin/NN
board/NN
on/IN
which/WDT
other/JJ
coaches/NNS
tacked/VBD
their/PRP$
cards/NNS
./.
One/CD
recruiter/NN
working/VBG
with/IN
Mr./NNP
Meyer/NNP
was/VBD
so/RB
generous/JJ
with/IN
$/$
10/CD
and/CC
$/$
20/CD
bills/NNS
that/IN
prospects/NNS
sang/VBD
``/``
Here/RB
Comes/VBZ
Santa/NNP
Claus/NNP
''/''
when/WRB
he/PRP
approached/VBD
./.
Paying/VBG
players/NNS
at/IN
SMU/NNP
was/VBD
no/DT
casual/JJ
operation/NN
./.
It/PRP
involved/VBD
the/DT
athletics/NNS
director/NN
,/,
two/CD
different/JJ
football/NN
coaching/NN
staffs/NNS
,/,
and/CC
school/NN
trustees/NNS
and/CC
governors/NNS
--/:
just/RB
about/IN
everybody/NN
,/,
it/PRP
seemed/VBD
,/,
but/CC
Donald/NNP
Shields/NNP
,/,
the/DT
university/NN
's/POS
president/NN
./.
There/EX
's/VBZ
a/DT
memorable/JJ
passage/NN
in/IN
which/WDT
Mr./NNP
Shields/NNP
,/,
having/VBG
finally/RB
learned/VBN
of/IN
the/DT
practice/NN
,/,
expresses/VBZ
his/PRP$
outrage/NN
to/TO
Bill/NNP
Clements/NNP
,/,
then/RB
a/DT
university/NN
governor/NN
the/DT
governor/NN
of/IN
Texas/NNP
!/.
)/)
and/CC
oil/NN
man/NN
Edwin/NNP
Cox/NNP
,/,
chairman/NN
of/IN
the/DT
board/NN
of/IN
trustees/NNS
./.
``/``
You/PRP
stay/VBP
out/IN
of/IN
it/PRP
,/,
''/''
author/NN
Whitford/NNP
quotes/VBZ
Mr./NNP
Clements/NNP
as/IN
saying/VBG
./.
``/``
Go/VB
run/VB
the/DT
university/NN
./.
''/''
Which/WDT
was/VBD
about/IN
what/WP
Mr./NNP
Shields/NNP
did/VBD
,/,
and/CC
quietly/RB
,/,
until/IN
he/PRP
resigned/VBD
a/DT
few/JJ
years/NNS
later/RB
,/,
pleading/VBG
ill/JJ
health/NN
,/,
when/WRB
the/DT
stuff/NN
hit/VBD
the/DT
fan/NN
./.
Mr./NNP
Whitford/NNP
drew/VBD
on/IN
voluminous/JJ
news/NN
media/NNS
coverage/NN
of/IN
the/DT
SMU/NNP
scandal/NN
,/,
and/CC
on/IN
a/DT
university/NN
internal/JJ
investigation/NN
./.
Mr./NNP
Keteyian/NNP
had/VBD
to/TO
do/VB
most/JJS
of/IN
his/PRP$
own/JJ
digging/NN
on/IN
University/NNP
of/IN
Nebraska/NNP
football/NN
,/,
which/WDT
is/VBZ
,/,
to/TO
date/NN
,/,
high/JJ
and/CC
dry/JJ
as/RB
far/RB
as/IN
the/DT
NCAA/NNP
is/VBZ
concerned/VBN
./.
Unfortunately/RB
,/,
he/PRP
gets/VBZ
low/JJ
grades/NNS
as/IN
an/DT
investigative/JJ
reporter/NN
,/,
relying/VBG
heavily/RB
on/IN
what/WP
Chicago/NNP
's/POS
late/JJ
mayor/NN
,/,
Richard/NNP
J./NNP
Daley/NNP
,/,
called/VBD
``/``
insinuendo/NN
./.
''/''
Discrepancies/NNS
go/VBP
unexplained/JJ
in/IN
``/``
Confidential/NNP
''/''
(/(
one/CD
ex-player/NN
claims/VBZ
he/PRP
received/VBD
$/$
4,000/CD
to/TO
$/$
5,000/CD
for/IN
his/PRP$
season/NN
football/NN
tickets/NNS
while/IN
others/NNS
said/VBD
theirs/PRP
brought/VBD
only/RB
a/DT
few/JJ
hundred/CD
dollars/NNS
Mr./NNP
Keteyian/NNP
ca/MD
n't/RB
nail/VB
down/IN
something/NN
,/,
like/IN
who/WP
really/RB
owned/VBD
a/DT
car/NN
driven/VBN
by/IN
Husker/NNP
tailback/NN
Doug/NNP
Dubose/NNP
,/,
he/PRP
simply/RB
reprints/VBZ
his/PRP$
notes/NNS
./.
There/EX
are/VBP
gratuitous/JJ
references/NNS
to/TO
supposed/VBN
romantic/JJ
liaisons/NNS
between/IN
Husker/NNP
players/NNS
and/CC
a/DT
low-level/JJ
female/NN
university/NN
employee/NN
./.
A/DT
serious/JJ
charge/NN
--/:
that/IN
star/NN
flanker/NN
Irving/NNP
Fryar/NNP
``/``
threw/VBD
''/''
the/DT
1984/CD
Orange/NNP
Bowl/NNP
game/NN
by/IN
intentionally/RB
dropping/VBG
a/DT
pass/NN
in/IN
the/DT
end/NN
zone/NN
--/:
is/VBZ
included/VBN
,/,
even/RB
though/IN
the/DT
Nebraska/NNP
assistant/NN
coach/NN
quoted/VBN
denied/VBD
making/VBG
it/PRP
./.
Still/RB
,/,
the/DT
book/NN
produces/VBZ
more/JJR
smoke/NN
than/IN
a/DT
smoldering/VBG
sofa/NN
,/,
along/IN
with/IN
a/DT
few/JJ
flames/NNS
,/,
especially/RB
concerning/VBG
the/DT
use/NN
of/IN
steroids/NNS
./.
Dean/NNP
Steinkuhler/NNP
,/,
a/DT
spectacularly/RB
bulked-up/JJ
former/JJ
lineman/NN
,/,
confesses/VBZ
that/IN
he/PRP
used/VBD
'em/PRP
,/,
and/CC
says/VBZ
other/JJ
Huskers/NNPS
did/VBD
too/RB
./.
It/PRP
's/VBZ
a/DT
mystery/NN
how/WRB
this/DT
could/MD
have/VB
escaped/VBN
the/DT
notice/NN
of/IN
Nebraska/NNP
coaches/NNS
./.
Probably/RB
,/,
it/PRP
did/VBD
n't/RB
./.
``/``
Never/NNP
Too/NNP
Young/NNP
''/''
is/VBZ
a/DT
different/JJ
sort/NN
of/IN
work/NN
,/,
focusing/VBG
on/IN
the/DT
1986/CD
death/NN
from/IN
cocaine/NN
ingestion/NN
of/IN
Bias/NNP
,/,
a/DT
University/NNP
of/IN
Maryland/NNP
basketball/NN
star/NN
ticketed/VBN
for/IN
sure/JJ
pro/JJ
stardom/NN
./.
While/IN
the/DT
university/NN
was/VBD
no/RB
more/JJR
to/TO
blame/VB
for/IN
that/DT
than/IN
for/IN
the/DT
similar/JJ
fate/NN
of/IN
any/DT
other/JJ
student/NN
,/,
it/PRP
must/MD
bear/VB
responsibility/NN
for/IN
its/PRP$
conduct/NN
in/IN
the/DT
aftermath/NN
./.
Bias/NNP
's/POS
coach/NN
,/,
Lefty/NNP
Driesell/NNP
,/,
ordered/VBD
the/DT
room/NN
in/IN
which/WDT
Bias/NNP
died/VBD
to/TO
be/VB
cleaned/VBN
before/IN
the/DT
police/NN
could/MD
arrive/VB
(/(
the/DT
order/NN
was/VBD
n't/RB
carried/VBN
out/IN
)/)
,/,
and/CC
the/DT
school/NN
's/POS
athletics/NNS
director/NN
issued/VBD
false/JJ
information/NN
about/IN
the/DT
academic/JJ
standing/NN
of/IN
Bias/NNP
and/CC
other/JJ
players/NNS
./.
Those/DT
,/,
of/IN
course/NN
,/,
were/VBD
the/DT
responses/NNS
of/IN
people/NNS
with/IN
something/NN
to/TO
hide/VB
./.
One/NN
wonders/VBZ
how/WRB
other/JJ
college/NN
athletic/JJ
officials/NNS
would/MD
behave/VB
under/IN
the/DT
same/JJ
circumstances/NNS
./.
Tomorrow/NN
's/POS
``/``
On/NNP
Sports/NNPS
''/''
column/NN
will/MD
look/VB
at/IN
another/DT
aspect/NN
of/IN
the/DT
college/NN
sports/NNS
mess/NN
./.
Mercedes-Benz/NNP
of/IN
North/NNP
America/NNP
Inc./NNP
,/,
a/DT
unit/NN
of/IN
Daimler-Benz/NNP
AG/NNP
,/,
paid/VBD
Massachusetts/NNP
$/$
9.1/CD
million/CD
in/IN
taxes/NNS
,/,
bringing/VBG
to/TO
an/DT
end/NN
a/DT
10-month-long/JJ
corporate/JJ
tax/NN
chase/NN
./.
Officials/NNS
at/IN
the/DT
Department/NNP
of/IN
Revenue/NNP
had/VBD
dogged/VBN
the/DT
foreign/JJ
car/NN
maker/NN
for/IN
taxes/NNS
owed/VBN
on/IN
business/NN
transactions/NNS
and/CC
were/VBD
proceeding/VBG
to/TO
settle/VB
the/DT
dispute/NN
in/IN
court/NN
./.
But/CC
``/``
the/DT
check/NN
arrived/VBD
in/IN
the/DT
mail/NN
,/,
''/''
said/VBD
Stephen/NNP
Kidder/NNP
,/,
Massachusetts/NNP
Commissioner/NNP
of/IN
Revenue/NNP
./.
Mercedes-Benz/NNP
,/,
which/WDT
had/VBD
said/VBN
it/PRP
did/VBD
n't/RB
owe/VB
taxes/NNS
to/TO
Massachusetts/NNP
partly/RB
because/IN
it/PRP
sells/VBZ
its/PRP$
cars/NNS
at/IN
a/DT
dock/NN
in/IN
Baltimore/NNP
and/CC
not/RB
in/IN
Massachusetts/NNP
,/,
did/VBD
n't/RB
explain/VB
its/PRP$
change/NN
of/IN
heart/NN
./.
Last/JJ
month/NN
,/,
Mercedes-Benz/NNP
executives/NNS
approached/VBD
state/NN
revenue/NN
officials/NNS
complaining/VBG
about/IN
bad/JJ
press/NN
,/,
the/DT
commissioner/NN
said/VBD
./.
The/DT
dispute/NN
was/VBD
the/DT
subject/NN
of/IN
a/DT
Wall/NNP
Street/NNP
Journal/NNP
article/NN
in/IN
August/NNP
./.
The/DT
amount/NN
covers/VBZ
taxes/NNS
,/,
interest/NN
and/CC
penalties/NNS
owed/VBN
from/IN
1966/CD
,/,
when/WRB
the/DT
state/NN
began/VBD
collecting/VBG
corporate/JJ
taxes/NNS
,/,
to/TO
1985/CD
./.
Mercedes-Benz/NNP
also/RB
agreed/VBD
to/TO
pay/VB
taxes/NNS
owed/VBN
for/IN
the/DT
years/NNS
1986/CD
through/IN
1988/CD
,/,
Mr./NNP
Kidder/NNP
added/VBD
./.
Under/IN
Massachusetts/NNP
tax/NN
laws/NNS
,/,
corporations/NNS
must/MD
pay/VB
9.5/CD
%/NN
of/IN
estimated/VBN
profits/NNS
resulting/VBG
from/IN
business/NN
transactions/NNS
in/IN
the/DT
state/NN
if/IN
the/DT
company/NN
conducts/VBZ
a/DT
variety/NN
of/IN
non-sales/JJ
activities/NNS
,/,
including/VBG
warranties/NNS
,/,
customer/NN
complaints/NNS
and/CC
relations/NNS
with/IN
independent/JJ
dealerships/NNS
./.
National/NNP
Convenience/NNP
Stores/NNPS
Inc./NNP
,/,
trying/VBG
to/TO
shake/VB
the/DT
doldrums/NNS
in/IN
the/DT
convenience-store/NN
business/NN
,/,
said/VBD
it/PRP
will/MD
rearrange/VB
the/DT
merchandise/NN
in/IN
all/DT
of/IN
its/PRP$
stores/NNS
in/IN
the/DT
next/JJ
18/CD
months/NNS
to/TO
cater/VB
better/RB
to/TO
the/DT
neighborhoods/NNS
around/IN
its/PRP$
stores/NNS
./.
As/IN
part/NN
of/IN
the/DT
plan/NN
,/,
the/DT
Houston-based/JJ
company/NN
's/POS
1,100/CD
Stop/NNP
'N/NNP
Go/NNP
stores/NNS
will/MD
be/VB
refocused/VBN
to/TO
target/VB
black/JJ
,/,
Hispanic/NNP
,/,
upscale/JJ
or/CC
core/NN
middle-class/NN
customers/NNS
./.
Stores/NNS
in/IN
upper-income/NN
neighborhoods/NNS
,/,
for/IN
instance/NN
,/,
will/MD
carry/VB
high-priced/JJ
wines/NNS
,/,
publications/NNS
such/JJ
as/IN
Vanity/NNP
Fair/NNP
,/,
gourmet/NN
pasta/NN
sauces/NNS
,/,
oat/NN
bran/NN
cereals/NNS
and/CC
Weight/NNP
Watchers/NNPS
and/CC
Pritikin/NNP
products/NNS
./.
Stores/NNS
in/IN
Hispanic/NNP
areas/NNS
will/MD
stock/VB
an/DT
assortment/NN
of/IN
Spanish-language/NN
magazines/NNS
,/,
Mexican/JJ
cooking/NN
items/NNS
and/CC
candies/NNS
./.
Stores/NNS
in/IN
the/DT
company/NN
's/POS
core/NN
middle-class/NN
market/NN
will/MD
get/VB
more/RBR
frozen/JJ
and/CC
quick-to-prepare/JJ
foods/NNS
and/CC
a/DT
greater/JJR
selection/NN
of/IN
bottled/JJ
water/NN
./.
V.H./NNP
Van/NNP
Horn/NNP
,/,
National/NNP
Convenience/NNP
president/NN
and/CC
chief/NN
executive/NN
officer/NN
,/,
said/VBD
the/DT
move/NN
reflects/VBZ
the/DT
company/NN
's/POS
realization/NN
that/IN
the/DT
industry/NN
's/POS
poor/JJ
performance/NN
stems/VBZ
from/IN
its/PRP$
failure/NN
to/TO
give/VB
customers/NNS
what/WP
they/PRP
want/VBP
--/:
rather/RB
than/IN
from/IN
increasing/VBG
competition/NN
from/IN
gasoline/NN
stations/NNS
and/CC
24-hour/JJ
grocery/NN
stores/NNS
./.
``/``
Convenience/JJ
store/NN
merchandise/NN
has/VBZ
not/RB
kept/VBN
pace/NN
with/IN
current/JJ
trends/NNS
in/IN
consumer/NN
preferences/NNS
,/,
''/''
he/PRP
said/VBD
in/IN
a/DT
speech/NN
at/IN
the/DT
company/NN
's/POS
annual/JJ
shareholders/NNS
meeting/NN
./.
Analysts/NNS
and/CC
competitors/NNS
said/VBD
the/DT
move/NN
reflects/VBZ
a/DT
growing/VBG
need/NN
by/IN
the/DT
stores/NNS
to/TO
expand/VB
their/PRP$
customer/NN
base/NN
beyond/IN
the/DT
traditional/JJ
blue-collar/JJ
worker/NN
who/WP
pops/VBZ
into/IN
a/DT
convenience/NN
store/NN
for/IN
a/DT
sandwich/NN
,/,
cigarettes/NNS
,/,
soda/NN
or/CC
beer/NN
./.
``/``
There/EX
are/VBP
an/DT
increasing/VBG
number/NN
of/IN
people/NNS
out/IN
there/EX
who/WP
are/VBP
time-poor/JJ
,/,
''/''
said/VBD
Chris/NNP
Vroom/NNP
,/,
retail/JJ
analyst/NN
with/IN
Alex/NNP
./.
Brown/NNP
&/CC
Sons/NNPS
of/IN
Baltimore/NNP
./.
``/``
Those/DT
are/VBP
primarily/RB
white-collar/JJ
workers/NNS
,/,
a/DT
customer/NN
segment/NN
that/WDT
has/VBZ
historically/RB
proved/VBN
elusive/JJ
for/IN
convenience/NN
stores/NNS
./.
''/''
National/NNP
Convenience/NNP
's/POS
move/NN
is/VBZ
likely/JJ
to/TO
be/VB
echoed/VBN
by/IN
other/JJ
chains/NNS
,/,
though/IN
analysts/NNS
note/VBP
that/IN
Southland/NNP
Corp./NNP
,/,
owner/NN
of/IN
7-Eleven/NNP
stores/NNS
,/,
and/CC
Circle/NNP
K/NNP
Corp./NNP
are/VBP
too/RB
debt-heavy/JJ
to/TO
roll/VB
out/IN
such/PDT
an/DT
extensive/JJ
effort/NN
./.
Still/RB
,/,
Southland/NNP
said/VBD
that/IN
its/PRP$
franchisees/NNS
have/VBP
been/VBN
targeting/VBG
their/PRP$
merchandise/NN
to/TO
their/PRP$
customers/NNS
for/IN
years/NNS
,/,
and/CC
that/IN
the/DT
company/NN
has/VBZ
begun/VBN
to/TO
follow/VB
suit/NN
./.
For/IN
instance/NN
,/,
Southland/NNP
has/VBZ
expanded/VBN
its/PRP$
bottled/JJ
water/NN
selection/NN
in/IN
some/DT
stores/NNS
and/CC
added/VBN
fresh/JJ
sandwiches/NNS
in/IN
some/DT
outlets/NNS
./.
Several/JJ
months/NNS
ago/IN
,/,
it/PRP
also/RB
added/VBD
black/JJ
health/NN
and/CC
beauty/NN
aids/NNS
displays/NNS
to/TO
many/JJ
stores/NNS
,/,
a/DT
spokeswoman/NN
said/VBD
./.
``/``
We/PRP
certainly/RB
see/VBP
an/DT
increasing/VBG
trend/NN
toward/IN
that/DT
,/,
''/''
she/PRP
added/VBD
./.
National/NNP
Convenience/NNP
said/VBD
it/PRP
has/VBZ
tested/VBN
its/PRP$
new/JJ
merchandise/NN
mix/NN
in/IN
100/CD
stores/NNS
,/,
with/IN
favorable/JJ
results/NNS
./.
Analysts/NNS
said/VBD
the/DT
company/NN
's/POS
effort/NN
will/MD
be/VB
helped/VBN
by/IN
its/PRP$
decision/NN
last/JJ
year/NN
to/TO
put/VB
point-of-sale/JJ
scanners/NNS
in/IN
200/CD
stores/NNS
,/,
allowing/VBG
National/NNP
Convenience/NNP
to/TO
quickly/RB
track/VB
items/NNS
that/WDT
are/VBP
selling/VBG
and/CC
those/DT
that/WDT
are/VBP
n't/RB
./.
To/TO
promote/VB
its/PRP$
new/JJ
strategy/NN
,/,
National/NNP
Convenience/NNP
said/VBD
it/PRP
plans/VBZ
to/TO
spend/VB
about/IN
$/$
12/CD
million/CD
on/IN
advertising/NN
for/IN
the/DT
year/NN
ending/VBG
June/NNP
30/CD
,/,
up/RB
from/IN
about/IN
$/$
10/CD
million/CD
in/IN
fiscal/JJ
1989/CD
./.
Labor/NNP
Secretary/NNP
Elizabeth/NNP
Dole/NNP
named/VBD
a/DT
mediator/NN
to/TO
help/VB
resolve/VB
the/DT
lengthy/JJ
labor/NN
dispute/NN
between/IN
the/DT
United/NNP
Mine/NNP
Workers/NNPS
and/CC
Pittston/NNP
Co/NNP
./.
W.J./NNP
Usery/NNP
Jr./NNP
,/,
labor/NN
secretary/NN
during/IN
the/DT
Ford/NNP
administration/NN
,/,
was/VBD
named/VBN
to/TO
mediate/VB
talks/NNS
to/TO
settle/VB
the/DT
six-month/JJ
strike/NN
by/IN
the/DT
UMW/NNP
./.
Previous/JJ
talks/NNS
between/IN
Pittston/NNP
,/,
of/IN
Greenwich/NNP
,/,
Conn./NNP
,/,
and/CC
the/DT
union/NN
have/VBP
been/VBN
sporadic/JJ
and/CC
unsuccessful/JJ
./.
The/DT
union/NN
called/VBD
the/DT
strike/NN
in/IN
April/NNP
after/IN
Pittston/NNP
refused/VBD
to/TO
sign/VB
the/DT
UMW/NNP
's/POS
national/JJ
labor/NN
pact/NN
./.
Pittston/NNP
seeks/VBZ
changes/NNS
in/IN
health/NN
and/CC
pension/NN
benefits/NNS
,/,
among/IN
other/JJ
things/NNS
./.
No/DT
schedule/NN
for/IN
formal/JJ
talks/NNS
was/VBD
set/VBN
,/,
but/CC
meetings/NNS
are/VBP
expected/VBN
to/TO
begin/VB
soon/RB
./.
One/CD
day/NN
after/IN
Delmed/NNP
Inc./NNP
made/VBD
top/JJ
management/NN
changes/NNS
and/CC
disclosed/VBD
the/DT
end/NN
of/IN
an/DT
important/JJ
business/NN
tie/NN
,/,
its/PRP$
stock/NN
did/VBD
n't/RB
trade/VB
and/CC
the/DT
company/NN
forecast/VBD
a/DT
``/``
significant/JJ
''/''
drop/NN
next/JJ
year/NN
in/IN
sales/NNS
of/IN
its/PRP$
core/NN
product/NN
./.
That/DT
disclosure/NN
came/VBD
,/,
a/DT
Delmed/NNP
spokeswoman/NN
said/VBD
,/,
after/IN
the/DT
American/NNP
Stock/NNP
Exchange/NNP
alerted/VBD
the/DT
company/NN
that/IN
trading/NN
would/MD
n't/RB
resume/VB
in/IN
its/PRP$
stock/NN
until/IN
additional/JJ
information/NN
about/IN
developments/NNS
was/VBD
provided/VBN
./.
In/IN
addition/NN
to/TO
the/DT
forecast/NN
,/,
the/DT
company/NN
also/RB
said/VBD
it/PRP
is/VBZ
examining/VBG
potential/JJ
cost/NN
cuts/NNS
and/CC
reductions/NNS
in/IN
overhead/NN
./.
The/DT
spokeswoman/NN
said/VBD
the/DT
exchange/NN
would/MD
resume/VB
trading/VBG
of/IN
Delmed/NNP
stock/NN
today/NN
./.
Delmed/NNP
,/,
which/WDT
makes/VBZ
and/CC
sells/VBZ
peritoneal/JJ
dialysis/NN
products/NNS
used/VBN
in/IN
treating/VBG
kidney/NN
disease/NN
,/,
on/IN
Tuesday/NNP
announced/VBD
the/DT
resignations/NNS
of/IN
Robert/NNP
S./NNP
Ehrlich/NNP
,/,
chairman/NN
,/,
president/NN
and/CC
chief/NN
executive/NN
officer/NN
,/,
and/CC
of/IN
Leslie/NNP
I./NNP
Shapiro/NNP
,/,
chief/NN
operating/VBG
officer/NN
and/CC
chief/NN
financial/JJ
officer/NN
./.
They/PRP
were/VBD
succeeded/VBN
by/IN
executives/NNS
of/IN
Fresenius/NNP
USA/NNP
Inc./NNP
and/CC
its/PRP$
parent/NN
,/,
Fresenius/NNP
AG/NNP
,/,
which/WDT
owns/VBZ
about/IN
45/CD
%/NN
of/IN
Delmed/NNP
./.
At/IN
the/DT
same/JJ
time/NN
,/,
the/DT
New/NNP
Brunswick/NNP
,/,
N.J./NNP
,/,
company/NN
said/VBD
negotiations/NNS
about/IN
pricing/VBG
and/CC
volumes/NNS
of/IN
product/NN
had/VBD
collapsed/VBN
between/IN
it/PRP
and/CC
its/PRP$
exclusive/JJ
distributor/NN
in/IN
the/DT
U.S./NNP
,/,
National/NNP
Medical/NNP
Care/NNP
Inc/NNP
./.
Following/VBG
that/DT
announcement/NN
Tuesday/NNP
,/,
however/RB
,/,
company/NN
officials/NNS
were/VBD
unavailable/JJ
to/TO
elaborate/VB
./.
Yesterday/NN
,/,
the/DT
spokeswoman/NN
said/VBD
sales/NNS
of/IN
Delmed/NNP
products/NNS
through/IN
the/DT
exclusive/JJ
arrangement/NN
with/IN
National/NNP
Medical/NNP
accounted/VBD
for/IN
87/CD
%/NN
of/IN
Delmed/NNP
's/POS
1988/CD
sales/NNS
of/IN
$/$
21.1/CD
million/CD
./.
The/DT
current/JJ
distribution/NN
arrangement/NN
ends/VBZ
in/IN
March/NNP
1990/CD
,/,
although/IN
Delmed/NNP
said/VBD
it/PRP
will/MD
continue/VB
to/TO
provide/VB
some/DT
supplies/NNS
of/IN
the/DT
peritoneal/JJ
dialysis/NN
products/NNS
to/TO
National/NNP
Medical/NNP
,/,
the/DT
spokeswoman/NN
said/VBD
./.
Nonetheless/RB
,/,
``/``
Delmed/NNP
currently/RB
expects/VBZ
that/IN
1990/CD
sales/NNS
.../:
will/MD
be/VB
significantly/RB
below/IN
their/PRP$
1989/CD
level/NN
,/,
''/''
the/DT
company/NN
said/VBD
in/IN
a/DT
statement/NN
./.
Delmed/NNP
said/VBD
yesterday/NN
that/IN
Fresenius/NNP
USA/NNP
would/MD
begin/VB
distributing/VBG
the/DT
product/NN
and/CC
that/IN
the/DT
company/NN
is/VBZ
investigating/VBG
other/JJ
possible/JJ
distribution/NN
channels/NNS
./.
In/IN
any/DT
case/NN
,/,
supplies/NNS
to/TO
patients/NNS
wo/MD
n't/RB
be/VB
interrupted/VBN
,/,
the/DT
company/NN
added/VBD
./.
Fresenius/NNP
,/,
a/DT
West/NNP
German/NNP
pharmaceutical/JJ
concern/NN
,/,
has/VBZ
been/VBN
discussing/VBG
a/DT
transaction/NN
in/IN
which/WDT
it/PRP
would/MD
buy/VB
Delmed/NNP
stock/NN
for/IN
cash/NN
to/TO
bring/VB
its/PRP$
beneficial/JJ
ownership/NN
to/TO
between/IN
70/CD
%/NN
and/CC
80/CD
%/NN
./.
The/DT
transaction/NN
also/RB
would/MD
combine/VB
Fresenius/NNP
USA/NNP
and/CC
Delmed/NNP
./.
But/CC
the/DT
plan/NN
now/RB
is/VBZ
being/VBG
``/``
reformulated/VBN
,/,
''/''
Delmed/NNP
said/VBD
,/,
declining/VBG
to/TO
provide/VB
most/JJS
of/IN
the/DT
new/JJ
terms/NNS
of/IN
the/DT
combination/NN
./.
Said/VBD
the/DT
spokeswoman/NN
:/:
``/``
The/DT
whole/JJ
structure/NN
has/VBZ
changed/VBN
./.
The/DT
value/NN
of/IN
the/DT
company/NN
has/VBZ
changed/VBN
./.
''/''
Delmed/NNP
did/VBD
say/VB
that/IN
the/DT
proposal/NN
still/RB
would/MD
infuse/VB
cash/NN
into/IN
Delmed/NNP
but/CC
less/JJR
than/IN
the/DT
$/$
10/CD
million/CD
originally/RB
expected/VBN
./.
Delmed/NNP
also/RB
would/MD
receive/VB
the/DT
North/NNP
American/NNP
rights/NNS
to/TO
certain/JJ
Fresenius/NNP
AG/NNP
products/NNS
./.
Another/DT
option/NN
for/IN
Delmed/NNP
,/,
the/DT
company/NN
said/VBD
,/,
is/VBZ
that/IN
it/PRP
could/MD
sell/VB
its/PRP$
plant/NN
in/IN
Ogden/NNP
,/,
Utah/NNP
./.
It/PRP
added/VBD
that/IN
no/DT
discussions/NNS
about/IN
such/PDT
a/DT
sale/NN
are/VBP
under/IN
way/NN
./.
Brooks/NNP
Armored/NNP
Car/NNP
Service/NNP
Inc./NNP
never/RB
wanted/VBD
to/TO
get/VB
into/IN
money/NN
laundering/NN
./.
But/CC
July/NNP
5/CD
,/,
a/DT
thunderstorm/NN
in/IN
Wilmington/NNP
,/,
Del./NNP
,/,
caused/VBD
Shellpot/NNP
Creek/NNP
to/TO
rise/VB
15/CD
feet/NNS
,/,
pouring/VBG
1.3/CD
million/CD
gallons/NNS
of/IN
water/NN
into/IN
basement/NN
vaults/NNS
./.
The/DT
water/NN
destroyed/VBD
about/IN
$/$
75/CD
million/CD
in/IN
currency/NN
and/CC
caked/VBD
$/$
4/CD
million/CD
of/IN
coins/NNS
with/IN
mud/NN
,/,
rendering/VBG
them/PRP
dangerous/JJ
to/TO
counting/VBG
machines/NNS
./.
The/DT
$/$
75/CD
million/CD
in/IN
paper/NN
money/NN
,/,
although/IN
moldy/JJ
,/,
mildewy/JJ
and/CC
smelly/JJ
,/,
was/VBD
exchanged/VBN
through/IN
the/DT
Federal/NNP
Reserve/NNP
Bank/NNP
of/IN
Philadelphia/NNP
without/IN
incident/NN
./.
But/CC
Brooks/NNP
was/VBD
unable/JJ
to/TO
reach/VB
a/DT
coin-cleaning/JJ
agreement/NN
with/IN
the/DT
government/NN
./.
``/``
We/PRP
kind/NN
of/IN
got/VBD
caught/VBN
between/IN
bureaucracies/NNS
,/,
''/''
says/VBZ
President/NNP
William/NNP
F./NNP
Brooks/NNP
Jr/NNP
./.
The/DT
U.S./NNP
Mint/NNP
would/MD
n't/RB
take/VB
the/DT
coin/NN
because/IN
it/PRP
was/VBD
n't/RB
mutilated/VBN
,/,
and/CC
the/DT
Federal/NNP
Reserve/NNP
Bank/NNP
accepts/VBZ
only/JJ
clean/JJ
coins/NNS
,/,
he/PRP
says/VBZ
./.
The/DT
Philadelphia/NNP
Fed/NNP
says/VBZ
it/PRP
is/VBZ
merely/RB
an/DT
``/``
agent/NN
''/''
for/IN
coins/NNS
,/,
responsible/JJ
only/RB
for/IN
storage/NN
and/CC
distribution/NN
./.
``/``
We/PRP
issue/VBP
paper/NN
money/NN
;/:
we/PRP
destroy/VBP
paper/NN
money/NN
,/,
''/''
says/VBZ
Jane/NNP
Hinkle/NNP
,/,
a/DT
Philadelphia/NNP
Fed/NNP
spokeswoman/NN
./.
``/``
The/DT
coin/NN
is/VBZ
their/PRP$
problem/NN
./.
''/''
A/DT
Mint/NNP
official/NN
says/VBZ
the/DT
agency/NN
offered/VBD
to/TO
clean/VB
the/DT
coins/NNS
for/IN
its/PRP$
``/``
bare-bones/JJ
''/''
cost/NN
of/IN
$/$
17,000/CD
plus/CC
certain/JJ
other/JJ
expenses/NNS
./.
But/CC
Brooks/NNP
declined/VBD
,/,
figuring/VBG
that/IN
transporting/VBG
the/DT
mucked/VBN
up/IN
money/NN
to/TO
Washington/NNP
would/MD
cost/VB
the/DT
company/NN
thousands/NNS
more/RBR
./.
So/IN
Brooks/NNP
gave/VBD
the/DT
dirty/JJ
work/NN
to/TO
Coin/NNP
Wrap/NNP
Inc./NNP
,/,
which/WDT
came/VBD
up/IN
with/IN
an/DT
unusual/JJ
solution/NN
./.
For/IN
eight/CD
hours/NNS
a/DT
day/NN
for/IN
the/DT
past/JJ
two/CD
weeks/NNS
,/,
in/IN
aggregates/NNS
of/IN
as/RB
much/JJ
as/IN
27,000/CD
pounds/NNS
$/$
20,000/CD
in/IN
pennies/NNS
Coin/NNP
Wrap/NNP
has/VBZ
been/VBN
pouring/VBG
money/NN
into/IN
a/DT
cement-mixing/JJ
truck/NN
./.
A/DT
giant/JJ
heater/NN
,/,
working/VBG
like/IN
a/DT
blowtorch/NN
,/,
causes/VBZ
the/DT
mud/NN
to/TO
crust/NN
and/CC
burns/NNS
off/IN
any/DT
wrappers/NNS
./.
After/IN
clanging/VBG
around/IN
for/IN
an/DT
hour/NN
or/CC
so/RB
,/,
the/DT
shiny/JJ
,/,
hot/JJ
money/NN
pours/VBZ
out/IN
of/IN
the/DT
cement/NN
chute/NN
,/,
where/WRB
a/DT
giant/JJ
vacuum/NN
sucks/VBZ
away/RB
the/DT
dried/VBN
mud/NN
and/CC
burnt/JJ
wrappers/NNS
./.
After/IN
cooling/VBG
,/,
the/DT
coins/NNS
are/VBP
then/RB
rewrapped/NN
./.
Brooks/NNP
expects/VBZ
to/TO
pay/VB
Coin/NNP
Wrap/NNP
a/DT
total/NN
of/IN
about/IN
$/$
20,000/CD
--/:
a/DT
cost/NN
that/DT
insurance/NN
wo/MD
n't/RB
cover/VB
./.
And/CC
while/IN
the/DT
job/NN
is/VBZ
half/RB
done/VBN
,/,
Brooks/NNP
is/VBZ
still/RB
bitter/JJ
./.
In/IN
fact/NN
,/,
there/EX
's/VBZ
only/RB
one/CD
person/NN
involved/VBN
who/WP
's/VBZ
happy/JJ
,/,
and/CC
that/DT
's/VBZ
Floyd/NNP
String/NNP
,/,
president/NN
of/IN
Coin/NNP
Wrap/NNP
and/CC
conceiver/NN
of/IN
the/DT
cement-truck/JJ
solution/NN
./.
Not/RB
only/RB
did/VBD
his/PRP$
company/NN
find/VB
$/$
20,000/CD
worth/NN
of/IN
work/NN
,/,
but/CC
when/WRB
the/DT
approach/NN
was/VBD
suggested/VBN
,/,
Mr./NNP
String/NNP
says/VBZ
,/,
Brooks/NNP
officials/NNS
``/``
did/VBD
n't/RB
laugh/NN
at/IN
me/PRP
or/CC
anything/NN
./.
''/''
``/``
Parenthood/NN
,/,
''/''
this/DT
summer/NN
's/POS
successful/JJ
and/CC
amusing/JJ
movie/NN
about/IN
parents/NNS
and/CC
children/NNS
,/,
apparently/RB
was/VBD
only/RB
the/DT
beginning/NN
./.
It/PRP
seems/VBZ
that/IN
every/DT
day/NN
a/DT
new/JJ
movie/NN
opens/VBZ
featuring/VBG
a/DT
child/NN
coping/VBG
with/IN
a/DT
mother/NN
's/POS
death/NN
,/,
or/CC
adoption/NN
,/,
or/CC
aging/VBG
parents/NNS
,/,
or/CC
pregnancy/NN
./.
And/CC
why/WRB
not/RB
?/.
Some/DT
of/IN
our/PRP$
best/JJS
and/CC
most/RBS
idiosyncratic/JJ
film/NN
makers/NNS
--/:
from/IN
Truffaut/NNP
to/TO
Fellini/NNP
to/TO
Woody/NNP
Allen/NNP
--/:
have/VBP
taken/VBN
a/DT
cue/NN
from/IN
Chekhov/NNP
:/:
When/WRB
it/PRP
comes/VBZ
to/TO
compelling/JJ
drama/NN
,/,
there/EX
's/VBZ
no/DT
place/NN
like/IN
home/NN
./.
Yet/RB
too/RB
many/JJ
people/NNS
working/VBG
in/IN
Hollywood/NNP
today/NN
seem/VBP
to/TO
suffer/VB
from/IN
the/DT
delusion/NN
that/IN
the/DT
drama/NN
played/VBD
out/IN
in/IN
every/DT
home/NN
will/MD
be/VB
interesting/JJ
to/TO
people/NNS
who/WP
live/VBP
somewhere/RB
else/RB
./.
This/DT
is/VBZ
not/RB
the/DT
case/NN
./.
Some/DT
diaries/NNS
simply/RB
are/VBP
n't/RB
worth/JJ
snooping/VBG
in/IN
./.
Yet/CC
there/EX
will/MD
be/VB
people/NNS
who/WP
will/MD
sob/VB
at/IN
``/``
Immediate/NNP
Family/NNP
,/,
''/''
a/DT
limply/RB
constructed/VBN
and/CC
offensive/JJ
movie/NN
about/IN
adoption/NN
./.
These/DT
are/VBP
the/DT
sensitive/JJ
souls/NNS
who/WP
can/MD
empathize/VB
with/IN
and/CC
even/RB
enjoy/VB
hearing/VBG
about/IN
other/JJ
people/NNS
's/POS
troubles/NNS
,/,
no/DT
matter/NN
how/WRB
haltingly/RB
or/CC
predictably/RB
the/DT
sad/JJ
tale/NN
is/VBZ
told/VBN
./.
Written/VBN
by/IN
Barbara/NNP
Benedek/NNP
,/,
co-author/NN
of/IN
``/``
The/NNP
Big/NNP
Chill/NNP
,/,
''/''
``/``
Immediate/NNP
Family/NNP
''/''
takes/VBZ
the/DT
position/NN
that/IN
only/JJ
rich/JJ
people/NNS
living/VBG
in/IN
nice/JJ
houses/NNS
should/MD
have/VB
children/NNS
./.
The/DT
film/NN
makers/NNS
have/VBP
couched/VBN
this/DT
offensive/JJ
idea/NN
in/IN
pretty/JJ
packaging/NN
./.
Everyone/NN
is/VBZ
very/RB
nice/JJ
and/CC
good-looking/JJ
--/:
the/DT
adoptive/JJ
parents/NNS
Glenn/NNP
Close/NNP
and/CC
James/NNP
Woods/NNP
the/DT
teen-age/JJ
couple/NN
who/WP
decide/VBP
to/TO
give/VB
up/IN
their/PRP$
baby/NN
for/IN
adoption/NN
Mary/NNP
Stuart/NNP
Masterson/NNP
and/CC
Kevin/NNP
Dillon/NNP
Linda/NNP
and/CC
Michael/NNP
Ms./NNP
Close/NNP
and/CC
Mr./NNP
Woods/NNP
who/WP
seem/VBP
to/TO
be/VB
pushing/VBG
40/CD
,/,
live/VBP
in/IN
a/DT
large/JJ
and/CC
tastefully/RB
decorated/VBN
home/NN
in/IN
suburban/JJ
Seattle/NNP
./.
All/DT
of/IN
their/PRP$
friends/NNS
have/VBP
children/NNS
and/CC
they/PRP
ca/MD
n't/RB
,/,
so/RB
now/RB
they/PRP
want/VBP
a/DT
child/NN
more/RBR
than/IN
anything/NN
--/:
perhaps/RB
even/RB
more/JJR
than/IN
Michael/NNP
wanted/VBD
his/PRP$
fancy/JJ
convertible/NN
or/CC
his/PRP$
deluxe/JJ
stereo/NN
equipment/NN
./.
The/DT
idea/NN
of/IN
a/DT
child-as-required-yuppie-possession/NN
must/MD
be/VB
motivating/VBG
them/PRP
,/,
since/IN
the/DT
wealthy/JJ
offspring/NN
of/IN
their/PRP$
friends/NNS
are/VBP
shown/VBN
to/TO
be/VB
rude/JJ
brats/NNS
,/,
in/IN
therapy/NN
by/IN
age/NN
five/CD
./.
Having/VBG
exhausted/VBN
all/DT
modern/JJ
aids/NNS
to/TO
fertility/NN
,/,
Linda/NNP
and/CC
Michael/NNP
decide/VBP
to/TO
adopt/VB
./.
The/DT
actors/NNS
wear/VBP
pained/JJ
expressions/NNS
to/TO
indicate/VB
their/PRP$
genuine/JJ
longing/NN
for/IN
a/DT
little/JJ
one/CD
--/:
or/CC
maybe/RB
they/PRP
're/VBP
not-so-subtly/RB
commenting/VBG
on/IN
the/DT
inadequacy/NN
of/IN
the/DT
script/NN
,/,
and/CC
Jonathan/NNP
Kaplan/NNP
's/POS
``/``
The/NNP
Accused/NNP
''/''
)/)
dull/JJ
direction/NN
./.
Or/CC
maybe/RB
they/PRP
are/VBP
disgusted/VBN
by/IN
the/DT
literal-minded/JJ
musical/JJ
score/NN
;/:
when/WRB
a/DT
character/NN
arrives/VBZ
at/IN
a/DT
major/JJ
decision/NN
her/PRP$
thoughts/NNS
are/VBP
revealed/VBN
by/IN
the/DT
sound/NN
of/IN
``/``
I/PRP
Can/MD
See/VB
Clearly/RB
Now/RB
./.
''/''
The/DT
adoption/NN
agency/NN
insists/VBZ
on/IN
introducing/VBG
the/DT
adopting/VBG
parents/NNS
to/TO
the/DT
birth/NN
mother/NN
,/,
so/IN
Linda/NNP
and/CC
Michael/NNP
pay/VBP
for/IN
pregnant/JJ
Lucy/NNP
's/POS
Ms./NNP
Masterson/NNP
bus/NN
ticket/NN
from/IN
Ohio/NNP
./.
these/DT
movies/NNS
is/VBZ
the/DT
unwed/JJ
pregnant/JJ
woman/NN
always/RB
from/IN
Ohio/NNP
?/.
I/PRP
ask/VBP
this/DT
not/RB
necessarily/RB
as/IN
a/DT
native/JJ
Ohioan/NNP
./.
Lucy/NNP
,/,
of/IN
course/NN
,/,
is/VBZ
pretty/JJ
and/CC
smart/JJ
,/,
though/IN
uneducated/JJ
./.
Everyone/NN
falls/VBZ
in/IN
love/NN
with/IN
everyone/NN
else/RB
./.
There/EX
is/VBZ
some/DT
pain/NN
,/,
when/WRB
Lucy/NNP
has/VBZ
the/DT
baby/NN
and/CC
``/``
did/VBD
n't/RB
know/VB
she/PRP
would/MD
feel/VB
like/IN
this/DT
''/''
and/CC
wants/VBZ
to/TO
keep/VB
the/DT
baby/NN
./.
But/CC
in/IN
the/DT
end/NN
,/,
everything/NN
turns/VBZ
out/IN
for/IN
the/DT
best/JJS
,/,
in/IN
the/DT
film/NN
makers/NNS
'/POS
warped/JJ
view/NN
./.
Like/IN
lawyers/NNS
in/IN
the/DT
hostile/JJ
takeover/NN
field/NN
,/,
the/DT
baby/NN
goes/VBZ
where/WRB
the/DT
money/NN
is/VBZ
./.
At/IN
the/DT
other/JJ
end/NN
of/IN
the/DT
life/NN
cycle/NN
is/VBZ
``/``
Dad/NNP
,/,
''/''
Gary/NNP
David/NNP
Goldberg/NNP
's/POS
adaptation/NN
of/IN
the/DT
William/NNP
Wharton/NNP
novel/NN
./.
This/DT
picture/NN
is/VBZ
about/IN
a/DT
middle-aged/JJ
son/NN
who/WP
makes/VBZ
sure/RB
that/IN
his/PRP$
delayed/VBN
bond/NN
with/IN
his/PRP$
father/NN
will/MD
last/VB
by/IN
waiting/VBG
to/TO
cement/VB
it/PRP
until/IN
just/RB
before/IN
the/DT
old/JJ
man/NN
dies/VBZ
./.
The/DT
glib/JJ
emotional/JJ
style/NN
Mr./NNP
Goldberg/NNP
has/VBZ
perfected/VBN
on/IN
television/NN
's/POS
``/``
Family/NNP
Ties/NNPS
''/''
does/VBZ
n't/RB
benefit/VB
from/IN
magnification/NN
./.
His/PRP$
characters/NNS
practically/RB
scamper/VBP
through/IN
a/DT
vast/JJ
range/NN
of/IN
human/JJ
emotions/NNS
,/,
like/IN
travelers/NNS
doing/VBG
10/CD
cities/NNS
in/IN
eight/CD
days/NNS
./.
They/PRP
pause/VBP
only/RB
to/TO
register/VB
little/JJ
whimpers/NNS
of/IN
distress/NN
and/CC
sighs/NNS
of/IN
satisfaction/NN
,/,
like/IN
tourists/NNS
cataloging/VBG
the/DT
sights/NNS
they/PRP
've/VBP
seen/VBN
from/IN
the/DT
window/NN
of/IN
a/DT
bus/NN
./.
Not/RB
even/RB
Jack/NNP
Lemmon/NNP
's/POS
expert/JJ
doddering/JJ
makes/NNS
this/DT
trip/NN
worth/NN
taking/VBG
./.
So/IN
it/PRP
's/VBZ
entirely/RB
possible/JJ
that/IN
``/``
Look/VB
Who/WP
's/VBZ
Talking/VBG
''/''
is/VBZ
n't/RB
as/RB
entertaining/JJ
as/IN
it/PRP
seems/VBZ
in/IN
comparison/NN
to/TO
the/DT
turgid/JJ
other/JJ
films/NNS
opening/VBG
now/RB
./.
But/CC
by/IN
comparison/NN
,/,
this/DT
fluffy/JJ
comedy/NN
seems/VBZ
like/IN
a/DT
gem/NN
./.
It/PRP
starts/VBZ
with/IN
conception/NN
,/,
taking/VBG
the/DT
sperm/NN
's/POS
point/NN
of/IN
view/NN
,/,
then/RB
progresses/VBZ
to/TO
the/DT
baby/NN
's/POS
point/NN
of/IN
view/NN
./.
Bruce/NNP
Willis/NNP
's/POS
best/JJS
attribute/NN
as/IN
an/DT
actor/NN
is/VBZ
his/PRP$
coy/JJ
,/,
lazy/JJ
voice/NN
,/,
and/CC
that/DT
's/VBZ
all/DT
you/PRP
get/VBP
of/IN
him/PRP
here/RB
,/,
speaking/VBG
for/IN
the/DT
baby/NN
./.
Finally/RB
,/,
there/EX
is/VBZ
one/CD
family/NN
movie/NN
that/IN
quite/RB
eloquently/RB
explores/VBZ
the/DT
depth/NN
of/IN
human/JJ
emotion/NN
--/:
only/RB
its/PRP$
stars/NNS
are/VBP
bears/VBZ
./.
For/IN
the/DT
second/JJ
time/NN
,/,
in/IN
a/DT
movie/NN
called/VBN
``/``
The/NNP
Bear/NNP
,/,
''/''
French/NNP
director/NN
Jean-Jacques/NNP
Annaud/NNP
demonstrates/VBZ
just/RB
how/WRB
powerful/JJ
pictures/NNS
can/MD
be/VB
./.
``/``
Quest/NNP
for/IN
Fire/NNP
''/''
was/VBD
the/DT
first/JJ
time/NN
./.
one/NN
wonders/VBZ
what/WDT
kind/NN
of/IN
man/NN
is/VBZ
this/DT
,/,
who/WP
feels/VBZ
compelled/VBN
to/TO
try/VB
to/TO
understand/VB
the/DT
most/RBS
primitive/JJ
longing/NN
and/CC
instinct/NN
in/IN
a/DT
way/NN
that/WDT
requires/VBZ
the/DT
most/RBS
sophisticated/JJ
appreciation/NN
of/IN
visual/JJ
storytelling/NN
./.
Supposedly/RB
,/,
he/PRP
proposed/VBD
the/DT
movie/NN
to/TO
his/PRP$
producer/NN
,/,
Claude/NNP
Berri/NNP
,/,
in/IN
four/CD
lines/NNS
:/:
``/``
An/DT
orphan/JJ
bear/NN
cub/NN
./.
A/DT
big/JJ
solitary/JJ
bear/NN
./.
Two/CD
hunters/NNS
in/IN
the/DT
forest/NN
./.
The/DT
animals/NNS
'/POS
point/NN
of/IN
view/NN
./.
''/''
But/CC
then/RB
,/,
even/RB
a/DT
great/JJ
many/JJ
words/NNS
could/MD
n't/RB
summarize/VB
the/DT
extraordinary/JJ
pull/NN
of/IN
this/DT
movie/NN
about/IN
an/DT
orphaned/VBN
bear/NN
who/WP
adopts/VBZ
a/DT
parent/NN
./.
Video/NNP
Tip/NNP
:/:
One/CD
of/IN
the/DT
best/JJS
movies/NNS
about/IN
the/DT
child-parent/JJ
thing/NN
in/IN
recent/JJ
years/NNS
was/VBD
``/``
Raising/NNP
Arizona/NNP
,/,
''/''
the/DT
1987/CD
Coen/NNP
brothers/NNS
'/POS
comedy/NN
that/IN
definitely/RB
was/VBD
not/RB
about/IN
the/DT
folks/NNS
next/IN
door/NN
./.
Westinghouse/NNP
Electric/NNP
Corp./NNP
,/,
capitalizing/VBG
on/IN
a/DT
major/JJ
restructuring/VBG
program/NN
,/,
expects/VBZ
operating/VBG
margins/NNS
of/IN
more/RBR
than/IN
10/CD
%/NN
and/CC
double-digit/JJ
per-share/JJ
earnings/NNS
growth/NN
next/IN
year/NN
,/,
top/NN
officers/NNS
told/VBD
securities/NNS
analysts/NNS
here/RB
./.
John/NNP
C./NNP
Marous/NNP
,/,
chairman/NN
and/CC
chief/NN
executive/NN
officer/NN
,/,
also/RB
said/VBD
the/DT
company/NN
expects/VBZ
sales/NNS
from/IN
continuing/VBG
businesses/NNS
to/TO
rise/VB
8.5/CD
%/NN
annually/RB
through/IN
the/DT
next/JJ
three/CD
years/NNS
./.
In/IN
1988/CD
,/,
the/DT
company/NN
earned/VBN
$/$
822.8/CD
million/CD
,/,
or/CC
$/$
5.66/CD
a/DT
share/NN
,/,
on/IN
sales/NNS
of/IN
$/$
12.49/CD
billion/CD
./.
Since/IN
1983/CD
,/,
Westinghouse/NNP
has/VBZ
shed/VBN
70/CD
businesses/NNS
that/IN
it/PRP
did/VBD
n't/RB
expect/VB
to/TO
produce/VB
10/CD
%/NN
operating/VBG
margins/NNS
while/IN
acquiring/VBG
55/CD
businesses/NNS
./.
In/IN
the/DT
past/JJ
20/CD
months/NNS
alone/RB
,/,
Paul/NNP
E./NNP
Lego/NNP
,/,
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
,/,
said/VBD
the/DT
divestiture/NN
of/IN
$/$
300/CD
million/CD
of/IN
slow-growth/NN
,/,
low-profit/JJ
businesses/NNS
has/VBZ
been/VBN
more/RBR
than/IN
offset/VBN
by/IN
$/$
600/CD
million/CD
in/IN
profitable/JJ
acquisitions/NNS
./.
Westinghouse/NNP
expects/VBZ
to/TO
meet/VB
its/PRP$
corporate/JJ
goals/NNS
despite/IN
a/DT
softening/NN
in/IN
the/DT
economy/NN
./.
Even/RB
if/IN
the/DT
gross/JJ
national/JJ
product/NN
is/VBZ
either/RB
flat/JJ
or/CC
in/IN
the/DT
growth/NN
range/NN
of/IN
2/CD
%/NN
to/TO
2.5/CD
%/NN
,/,
``/``
we/PRP
can/MD
handle/VB
that/DT
,/,
''/''
Mr./NNP
Marous/NNP
said/VBD
./.
GNP/NNP
is/VBZ
the/DT
total/JJ
value/NN
of/IN
the/DT
nation/NN
's/POS
output/NN
of/IN
goods/NNS
and/CC
services/NNS
./.
A/DT
bright/JJ
spot/NN
is/VBZ
the/DT
company/NN
's/POS
power-generation/NN
business/NN
,/,
which/WDT
is/VBZ
experiencing/VBG
a/DT
surge/NN
of/IN
growth/NN
for/IN
the/DT
first/JJ
time/NN
in/IN
years/NNS
./.
Mr./NNP
Marous/NNP
said/VBD
the/DT
business/NN
will/MD
achieve/VB
higher/JJR
sales/NNS
this/DT
year/NN
than/IN
the/DT
company/NN
's/POS
target/NN
goal/NN
of/IN
8.5/CD
%/NN
./.
While/IN
Westinghouse/NNP
has/VBZ
n't/RB
had/VBD
a/DT
nuclear/JJ
power/NN
plant/NN
order/NN
from/IN
a/DT
U.S./NNP
utility/NN
in/IN
about/IN
a/DT
decade/NN
,/,
excess/JJ
capacity/NN
is/VBZ
beginning/VBG
to/TO
shrink/VB
./.
Mr./NNP
Lego/NNP
said/VBD
the/DT
company/NN
foresees/VBZ
the/DT
need/NN
for/IN
a/DT
major/JJ
boost/NN
in/IN
new-generation/NN
capability/NN
throughout/IN
the/DT
1990s/CD
./.
Westinghouse/NNP
also/RB
is/VBZ
well/RB
positioned/VBN
to/TO
sell/VB
steam/NN
turbine/NN
and/CC
gas/NN
turbine/NN
plants/NNS
to/TO
independent/JJ
power/NN
producers/NNS
./.
The/DT
company/NN
's/POS
ability/NN
to/TO
respond/VB
to/TO
energy/NN
needs/NNS
world-wide/JJ
will/MD
be/VB
enhanced/VBN
through/IN
a/DT
recently/RB
announced/VBN
venture/NN
with/IN
Mitsubishi/NNP
Heavy/NNP
Industries/NNPS
,/,
Mr./NNP
Lego/NNP
said/VBD
./.
He/PRP
said/VBD
the/DT
independent/JJ
power/NN
segment/NN
could/MD
grow/VB
to/TO
provide/VB
as/RB
much/RB
as/IN
50/CD
%/NN
of/IN
near-term/JJ
generation/NN
capacity/NN
,/,
adding/VBG
:/:
``/``
We/PRP
expect/VBP
to/TO
supply/VB
a/DT
significant/JJ
share/NN
of/IN
this/DT
market/NN
./.
''/''
Westinghouse/NNP
also/RB
expects/VBZ
its/PRP$
international/JJ
sales/NNS
to/TO
soon/RB
grow/VB
to/TO
25/CD
%/NN
of/IN
total/JJ
corporate/JJ
sales/NNS
from/IN
20/CD
%/NN
last/JJ
year/NN
./.
The/DT
company/NN
is/VBZ
negotiating/VBG
with/IN
the/DT
Soviets/NNPS
to/TO
build/VB
a/DT
Thermo/NNP
King/NNP
truck-refrigeration/NN
plant/NN
that/WDT
would/MD
produce/VB
about/IN
10,000/CD
units/NNS
annually/RB
./.
Mr./NNP
Marous/NNP
said/VBD
Westinghouse/NNP
would/MD
own/VB
70/CD
%/NN
of/IN
the/DT
facility/NN
./.
The/DT
deal/NN
,/,
which/WDT
will/MD
involve/VB
an/DT
initial/JJ
$/$
20/CD
million/CD
investment/NN
,/,
was/VBD
struck/VBN
with/IN
a/DT
handshake/NN
,/,
he/PRP
added/VBD
./.
Company/NN
officials/NNS
also/RB
said/VBD
that/IN
any/DT
gain/NN
from/IN
the/DT
sale/NN
of/IN
Westinghouse/NNP
's/POS
55/CD
%/NN
stake/NN
in/IN
its/PRP$
transmission/NN
and/CC
distribution/NN
venture/NN
with/IN
the/DT
Swiss/NNP
firm/NN
of/IN
Asea/NNP
Brown/NNP
Boveri/NNP
will/MD
be/VB
offset/VBN
by/IN
a/DT
restructuring/VBG
charge/NN
in/IN
the/DT
fourth/JJ
quarter/NN
./.
The/DT
executives/NNS
did/VBD
n't/RB
disclose/VB
the/DT
size/NN
of/IN
the/DT
expected/VBN
gain/NN
./.
Capital/NN
expenditure/NN
in/IN
1990/CD
will/MD
rise/VB
slightly/RB
,/,
Mr./NNP
Marous/NNP
said/VBD
,/,
from/IN
an/DT
estimated/VBN
$/$
470/CD
million/CD
this/DT
year/NN
./.
SHORT/JJ
INTEREST/NN
in/IN
International/NNP
Mobile/NNP
Machines/NNPS
Corp./NNP
fell/VBD
to/TO
3,102,935/CD
shares/NNS
in/IN
the/DT
month/NN
ended/VBD
Oct./NNP
13/CD
from/IN
3,420,936/CD
in/IN
September/NNP
./.
Because/IN
of/IN
an/DT
error/NN
by/IN
the/DT
National/NNP
Association/NNP
of/IN
Securities/NNPS
Dealers/NNPS
,/,
the/DT
listing/NN
appeared/VBD
incorrectly/RB
in/IN
the/DT
main/JJ
table/NN
and/CC
several/JJ
highlight/NN
tables/NNS
in/IN
yesterday/NN
's/POS
edition/NN
./.
Short/JJ
Interest/NN
in/IN
OTC/NNP
Stocks/NNS
Posts/VBZ
6/CD
%/NN
Jump/NN
--/:
Rise/NN
During/IN
Latest/JJS
Period/NN
Is/VBZ
Sharpest/JJS
Since/IN
April/NNP
;/:
Oct./NNP
13/CD
Drop/NN
Is/VBZ
n't/RB
Factor/NN
''/''
--/:
WSJ/NNP
Oct./NNP
25/CD
,/,
1989/CD
)/)
A/DT
proposed/VBN
conflict-of-interest/NN
policy/NN
for/IN
federally/RB
funded/VBN
biomedical/JJ
researchers/NNS
may/MD
thwart/VB
many/JJ
high-technology/NN
new/JJ
ventures/NNS
,/,
say/VBP
financiers/NNS
,/,
researchers/NNS
and/CC
university/NN
administrators/NNS
./.
The/DT
National/NNP
Institutes/NNPS
of/IN
Health/NNP
policy/NN
would/MD
require/VB
researchers/NNS
to/TO
cut/VB
financial/JJ
ties/NNS
with/IN
health-care/JJ
businesses/NNS
--/:
or/CC
lose/VB
their/PRP$
government/NN
money/NN
./.
Among/IN
other/JJ
concerns/NNS
,/,
the/DT
agency/NN
says/VBZ
researchers/NNS
with/IN
business/NN
ties/NNS
are/VBP
more/RBR
likely/JJ
to/TO
falsify/VB
findings/NNS
in/IN
order/NN
to/TO
tout/VB
new/JJ
drugs/NNS
./.
As/IN
ties/NNS
between/IN
academia/NN
and/CC
venture/NN
capital/NN
have/VBP
blossomed/VBN
in/IN
recent/JJ
years/NNS
,/,
governmental/JJ
fear/NN
of/IN
abuse/NN
has/VBZ
risen/VBN
./.
But/CC
the/DT
guidelines/NNS
could/MD
``/``
make/VB
it/PRP
impossible/JJ
to/TO
commercialize/VB
research/NN
,/,
''/''
says/VBZ
Kenneth/NNP
Smith/NNP
,/,
associate/JJ
provost/NN
and/CC
vice/NN
president/NN
for/IN
research/NN
at/IN
Massachusetts/NNP
Institute/NNP
of/IN
Technology/NNP
./.
The/DT
NIH/NNP
is/VBZ
asking/VBG
grant/NN
recipients/NNS
and/CC
others/NNS
for/IN
comments/NNS
on/IN
the/DT
proposed/VBN
guidelines/NNS
until/IN
Dec./NNP
15/CD
./.
After/IN
that/DT
,/,
it/PRP
will/MD
make/VB
a/DT
final/JJ
decision/NN
on/IN
the/DT
policy/NN
./.
The/DT
guidelines/NNS
could/MD
foil/VB
future/JJ
arrangements/NNS
similar/JJ
to/TO
the/DT
deal/NN
behind/IN
Lithox/NNP
Inc./NNP
,/,
a/DT
Salem/NNP
,/,
Mass./NNP
,/,
start-up/NN
,/,
says/VBZ
Robert/NNP
Daly/NNP
,/,
a/DT
managing/VBG
partner/NN
of/IN
TA/NNP
Associates/NNPS
,/,
a/DT
venture-capital/JJ
firm/NN
./.
With/IN
$/$
2.3/CD
million/CD
,/,
he/PRP
and/CC
other/JJ
investors/NNS
launched/VBD
Lithox/NNP
last/JJ
year/NN
to/TO
market/NN
a/DT
gallstone/NN
cure/NN
being/NN
developed/VBN
by/IN
researchers/NNS
of/IN
the/DT
University/NNP
of/IN
California/NNP
at/IN
San/NNP
Diego/NNP
./.
The/DT
researchers/NNS
,/,
who/WP
are/VBP
being/VBG
financed/VBN
by/IN
the/DT
Lithox/NNP
funds/NNS
,/,
will/MD
receive/VB
a/DT
royalty/NN
,/,
or/CC
percentage/NN
of/IN
sales/NNS
,/,
if/IN
their/PRP$
research/NN
yields/VBZ
a/DT
commercial/JJ
product/NN
./.
But/CC
because/IN
the/DT
University/NNP
of/IN
California/NNP
,/,
like/IN
many/JJ
other/JJ
universities/NNS
,/,
shares/VBZ
its/PRP$
royalties/NNS
with/IN
researchers/NNS
,/,
it/PRP
may/MD
disqualify/VB
itself/PRP
from/IN
federal/JJ
funds/NNS
under/IN
the/DT
proposed/VBN
guidelines/NNS
,/,
Mr./NNP
Daly/NNP
says/VBZ
./.
The/DT
high-tech/JJ
industry/NN
is/VBZ
full/JJ
of/IN
the/DT
kind/NN
of/IN
arrangement/NN
that/IN
the/DT
new/JJ
guidelines/NNS
would/MD
affect/VB
./.
For/IN
instance/NN
,/,
Commonwealth/NNP
BioVentures/NNP
Inc./NNP
,/,
a/DT
venture-capital/JJ
concern/NN
,/,
last/JJ
month/NN
invested/VBD
$/$
600,000/CD
to/TO
launch/VB
Amira/NNP
Inc./NNP
,/,
a/DT
Worcester/NNP
,/,
Mass./NNP
,/,
concern/NN
that/WDT
will/MD
produce/VB
pharmaceuticals/NNS
./.
Scientists/NNS
Rima/NNP
Kaddurah-Daouk/NNP
and/CC
Paul/NNP
Schimmel/NNP
conducted/VBD
the/DT
initial/JJ
research/NN
at/IN
the/DT
Massachusetts/NNP
Institute/NNP
of/IN
Technology/NNP
./.
While/IN
Ms./NNP
Kaddurah-Daouk/NNP
left/VBD
MIT/NNP
to/TO
head/VB
Amira/NNP
,/,
Prof./NNP
Schimmel/NNP
will/MD
continue/VB
to/TO
work/VB
at/IN
MIT/NNP
,/,
serve/VB
on/IN
Amira/NNP
's/POS
board/NN
and/CC
own/VB
a/DT
small/JJ
equity/NN
stake/NN
in/IN
the/DT
company/NN
./.
The/DT
Amira/NNP
transaction/NN
is/VBZ
typical/JJ
of/IN
the/DT
way/NN
venture-capital/JJ
firms/NNS
are/VBP
approaching/VBG
the/DT
task/NN
of/IN
commercializing/VBG
biotechnology/NN
research/NN
./.
While/IN
universities/NNS
develop/VBP
the/DT
basic/JJ
research/NN
,/,
``/``
venture/NN
capitalists/NNS
are/VBP
the/DT
ones/NNS
best/RB
positioned/VBD
to/TO
finance/VB
its/PRP$
commercialization/NN
,/,
''/''
says/VBZ
Gloria/NNP
W./NNP
Doubleday/NNP
of/IN
Commonwealth/NNP
./.
``/``
This/DT
is/VBZ
the/DT
best/JJS
way/NN
to/TO
transfer/VB
technology/NN
straight/RB
off/IN
the/DT
campuses/NNS
of/IN
universities/NNS
./.
''/''
But/CC
the/DT
new/JJ
guidelines/NNS
could/MD
prevent/VB
scientists/NNS
like/IN
Prof./NNP
Schimmel/NNP
from/IN
being/VBG
involved/VBN
with/IN
start-ups/NNS
such/JJ
as/IN
Amira/NNP
,/,
venture/NN
capitalists/NNS
point/VBP
out/IN
./.
And/CC
if/IN
that/DT
happens/VBZ
,/,
the/DT
entire/JJ
process/NN
of/IN
transferring/VBG
technology/NN
to/TO
the/DT
marketplace/NN
could/MD
be/VB
harmed/VBN
,/,
they/PRP
say/VBP
./.
The/DT
stakes/NNS
in/IN
the/DT
controversy/NN
are/VBP
large/JJ
./.
Last/JJ
year/NN
,/,
venture/NN
capitalists/NNS
spent/VBD
an/DT
estimated/VBN
$/$
600/CD
million/CD
to/TO
finance/VB
start-up/JJ
companies/NNS
in/IN
medical/JJ
and/CC
biotechnology/NN
businesses/NNS
,/,
according/VBG
to/TO
the/DT
National/NNP
Venture/NNP
Capital/NNP
Association/NNP
,/,
a/DT
trade/NN
group/NN
./.
Many/JJ
of/IN
the/DT
deals/NNS
involved/VBD
transactions/NNS
in/IN
which/WDT
scientific/JJ
institutions/NNS
or/CC
researchers/NNS
agreed/VBN
to/TO
commercialize/VB
their/PRP$
work/NN
in/IN
return/NN
for/IN
an/DT
equity/NN
stake/NN
or/CC
royalties/NNS
./.
In/IN
many/DT
of/IN
these/DT
deals/VBZ
,/,
``/``
venture/NN
capitalists/NNS
had/VBD
the/DT
inside/NN
track/NN
,/,
''/''
says/VBZ
Lawrence/NNP
Bock/NNP
of/IN
Avalon/NNP
Ventures/NNP
,/,
La/NNP
Jolla/NNP
,/,
Calif/NNP
./.
Investors/NNS
were/VBD
willing/JJ
to/TO
gamble/VB
on/IN
new/JJ
technologies/NNS
because/IN
``/``
we/PRP
had/VBD
exclusive/JJ
rights/NNS
to/TO
those/DT
technologies/NNS
,/,
''/''
he/PRP
adds/VBZ
./.
But/CC
under/IN
the/DT
proposed/VBN
guidelines/NNS
,/,
all/DT
federally/RB
funded/VBN
research/NN
will/MD
have/VB
to/TO
be/VB
reported/VBN
publicly/RB
so/IN
that/IN
anyone/NN
can/MD
capitalize/VB
on/IN
the/DT
work/NN
./.
``/``
Without/IN
the/DT
exclusivity/NN
,/,
most/JJS
venture/NN
capitalists/NNS
wo/MD
n't/RB
have/VB
the/DT
incentive/NN
to/TO
invest/VB
in/IN
such/JJ
deals/NNS
,/,
''/''
Mr./NNP
Bock/NNP
says/VBZ
./.
Last/JJ
year/NN
,/,
for/IN
example/NN
,/,
Avalon/NNP
and/CC
others/NNS
invested/VBD
$/$
14/CD
million/CD
in/IN
Athena/NNP
Neurosciences/NNP
Inc./NNP
,/,
South/NNP
San/NNP
Francisco/NNP
,/,
Calif./NNP
,/,
to/TO
license/VB
and/CC
develop/VB
technology/NN
for/IN
delivery/NN
of/IN
drugs/NNS
to/TO
the/DT
brain/NN
./.
But/CC
before/IN
Athena/NNP
was/VBD
able/JJ
to/TO
get/VB
an/DT
exclusive/JJ
license/NN
to/TO
the/DT
technology/NN
,/,
the/DT
Federal/NNP
Register/NNP
published/VBD
most/JJS
of/IN
the/DT
details/NNS
,/,
``/``
giving/VBG
all/DT
of/IN
the/DT
company/NN
's/POS
potential/JJ
competitors/NNS
a/DT
chance/NN
to/TO
exploit/VB
it/PRP
,/,
''/''
Mr./NNP
Bock/NNP
says/VBZ
./.
Athena/NNP
eventually/RB
acquired/VBD
exclusive/JJ
rights/NNS
to/TO
the/DT
technology/NN
and/CC
currently/RB
is/VBZ
developing/VBG
it/PRP
./.
But/CC
,/,
says/VBZ
Mr./NNP
Bock/NNP
,/,
``/``
It/PRP
was/VBD
a/DT
close/JJ
call/NN
./.
''/''
The/DT
proposed/VBN
guidelines/NNS
could/MD
also/RB
delay/VB
commercialization/NN
--/:
and/CC
force/VB
small/JJ
companies/NNS
to/TO
waste/VB
scarce/JJ
capital/NN
,/,
entrepreneurs/NNS
say/VBP
./.
If/IN
start-ups/NNS
ca/MD
n't/RB
have/VB
early/JJ
access/NN
to/TO
research/NN
being/NN
conducted/VBN
at/IN
institutions/NNS
,/,
``/``
we/PRP
have/VBP
to/TO
replicate/VB
it/PRP
ourselves/PRP
or/CC
do/VB
without/IN
the/DT
research/NN
,/,
''/''
says/VBZ
Ruth/NNP
Emyanitoff/NNP
,/,
manager/NN
of/IN
business/NN
development/NN
at/IN
Applied/NNP
bioTechnology/NNP
Inc./NNP
,/,
a/DT
Cambridge/NNP
,/,
Mass./NNP
,/,
concern/NN
./.
Duplicating/VBG
research/NN
is/VBZ
both/DT
costly/JJ
and/CC
time-consuming/JJ
for/IN
a/DT
start-up/NN
,/,
Ms./NNP
Emyanitoff/NNP
says/VBZ
./.
For/IN
its/PRP$
part/NN
,/,
NIH/NNP
insists/VBZ
that/IN
its/PRP$
guidelines/NNS
``/``
should/MD
not/RB
stifle/VB
research/NN
creativity/NN
or/CC
technology/NN
transfer/NN
from/IN
the/DT
research/NN
laboratory/NN
to/TO
commercial/JJ
use/NN
./.
''/''
Universities/NNS
such/JJ
as/IN
Harvard/NNP
and/CC
MIT/NNP
should/MD
be/VB
able/JJ
to/TO
develop/VB
a/DT
way/NN
to/TO
act/VB
as/IN
brokers/NNS
for/IN
the/DT
individual/JJ
scientists/NNS
,/,
says/VBZ
Katherine/NNP
Bick/NNP
,/,
who/WP
oversees/VBZ
the/DT
huge/JJ
NIH/NNP
grants/NNS
program/NN
as/IN
its/PRP$
deputy/NN
director/NN
for/IN
extramural/JJ
research/NN
./.
NIH/NNP
staff/NN
members/NNS
believe/VBP
the/DT
guidelines/NNS
are/VBP
essential/JJ
to/TO
prevent/VB
the/DT
escalation/NN
of/IN
problems/NNS
that/WDT
have/VBP
already/RB
begun/VBN
to/TO
surface/VB
in/IN
scientific/JJ
ventures/NNS
./.
Not/RB
long/RB
ago/RB
,/,
scientists/NNS
holding/VBG
stock/NN
in/IN
Spectra/NNP
Pharmaceutical/NNP
Services/NNPS
Inc./NNP
were/VBD
accused/VBN
of/IN
falsifying/VBG
research/NN
to/TO
boost/VB
the/DT
stock/NN
./.
Many/JJ
officials/NNS
are/VBP
also/RB
concerned/VBN
about/IN
companies/NNS
getting/VBG
a/DT
``/``
free/JJ
ride/NN
''/''
on/IN
government-sponsored/JJ
research/NN
./.
A/DT
congressional/JJ
subcommitee/NN
has/VBZ
been/VBN
investigating/VBG
the/DT
potential/JJ
abuse/NN
from/IN
researchers/NNS
holding/VBG
stock/NN
in/IN
companies/NNS
exploiting/VBG
their/PRP$
research/NN
./.
Among/IN
other/JJ
provisions/NNS
,/,
the/DT
NIH/NNP
guidelines/NNS
would/MD
prohibit/VB
researchers/NNS
and/CC
members/NNS
of/IN
their/PRP$
immediate/JJ
families/NNS
from/IN
holding/VBG
stock/NN
in/IN
any/DT
company/NN
that/WDT
is/VBZ
affected/VBN
by/IN
the/DT
outcome/NN
of/IN
their/PRP$
research/NN
./.
Ms./NNP
Bick/NNP
,/,
the/DT
NIH/NNP
administrator/NN
,/,
says/VBZ
the/DT
business/NN
and/CC
scientific/JJ
community/NN
is/VBZ
overreacting/VBG
to/TO
what/WP
the/DT
agency/NN
merely/RB
meant/VBD
to/TO
be/VB
``/``
ideas/NNS
for/IN
discussion/NN
./.
''/''
The/DT
predictions/NNS
of/IN
doom/NN
are/VBP
``/``
premature/JJ
,/,
''/''
she/PRP
says/VBZ
./.
But/CC
when/WRB
agencies/NNS
like/IN
the/DT
NIH/NNP
circulate/VBP
guidelines/NNS
,/,
they/PRP
've/VBP
often/RB
already/RB
formulated/VBN
policy/NN
,/,
veteran/NN
scientists/NNS
say/VBP
./.
Indeed/RB
,/,
institutions/NNS
already/RB
are/VBP
taking/VBG
note/NN
./.
On/IN
Sept./NNP
14/CD
,/,
Harvard/NNP
began/VBD
circulating/VBG
a/DT
conflict-of-interest/JJ
policy/NN
statement/NN
that/IN
,/,
in/IN
effect/NN
,/,
would/MD
follow/VB
the/DT
NIH/NNP
guidelines/NNS
faithfully/RB
./.
The/DT
University/NNP
of/IN
California/NNP
at/IN
San/NNP
Francisco/NNP
is/VBZ
also/RB
circulating/VBG
a/DT
memo/NN
among/IN
its/PRP$
scientific/JJ
faculty/NN
that/WDT
will/MD
restrict/VB
contact/NN
with/IN
the/DT
world/NN
of/IN
business/NN
./.
In/IN
many/JJ
other/JJ
institutions/NNS
,/,
scientists/NNS
are/VBP
shunning/VBG
contacts/NNS
with/IN
venture/NN
investors/NNS
until/IN
the/DT
NIH/NNP
policy/NN
is/VBZ
settled/VBN
./.
Says/VBZ
Mr./NNP
Daly/NNP
,/,
the/DT
venture/NN
capitalist/NN
:/:
``/``
It/PRP
does/VBZ
n't/RB
matter/VB
whether/IN
they/PRP
call/VBP
it/PRP

guidelines/NNS
or/CC
policy/NN
./.
The/DT
damage/NN
is/VBZ
already/RB
done/VBN
./.
''/''
Friday/NNP
,/,
Oct./NNP
27/CD
,/,
9/CD
p.m.-midnight/NN
EDT/NNP
,/,
on/IN
PBS/NNP
PBS/NNP
air/NN
dates/NNS
and/CC
times/NNS
vary/VBP
,/,
so/RB
check/VB
local/JJ
listings/NNS
Show/NNP
Boat/NNP
./.
''/''
New/NNP
Jersey/NNP
's/POS
Paper/NNP
Mill/NNP
Playhouse/NNP
produced/VBD
this/DT
faithful/JJ
revival/NN
of/IN
America/NNP
's/POS
most/JJS
influential/JJ
musical/JJ
,/,
written/VBN
by/IN
Jerome/NNP
Kern/NNP
and/CC
Oscar/NNP
Hammerstein/NNP
and/CC
first/RB
produced/VBN
on/IN
Broadway/NNP
in/IN
1927/CD
./.
Worth/JJ
watching/VBG
,/,
although/IN
the/DT
music/NN
has/VBZ
lasted/VBN
better/RB
than/IN
the/DT
plot/NN
or/CC
the/DT
humor/NN
./.
Saturday/NNP
,/,
Oct./NNP
28/CD
,/,
8-10/CD
p.m./NN
EDT/NNP
,/,
on/IN
HBO/NNP
Oct./NNP
31/CD
,/,
Nov./NNP
5/CD
,/,
8/CD
,/,
14/CD
,/,
16/CD
and/CC
20/CD
Perfect/NNP
Witness/NNP
./.
''/''
Aidan/NNP
Quinn/NNP
,/,
Brian/NNP
Dennehy/NNP
and/CC
Stockard/NNP
Channing/NNP
are/VBP
excellent/JJ
in/IN
this/DT
gripping/VBG
tale/NN
of/IN
a/DT
reluctant/JJ
witness/NN
in/IN
an/DT
organized/VBN
crime/NN
prosecution/NN
./.
It/PRP
's/VBZ
set/VBN
in/IN
New/NNP
York/NNP
,/,
but/CC
it/PRP
resonates/VBZ
with/IN
the/DT
terrible/JJ
dynamics/NNS
of/IN
the/DT
Latin/JJ
American/JJ
drug/NN
wars/NNS
./.
Sunday/NNP
,/,
Oct./NNP
29/CD
,/,
8-11/CD
p.m./NN
EST/NNP
,/,
on/IN
ABC/NNP
:/:
``/``
The/NNP
Final/NNP
Days/NNPS
./.
''/''
No/DT
doubt/NN
there/EX
is/VBZ
something/NN
to/TO
irk/VB
everyone/NN
in/IN
this/DT
AT&T-sponsored/JJ
dramatization/NN
of/IN
Bob/NNP
Woodward/NNP
and/CC
Carl/NNP
Bernstein/NNP
's/POS
book/NN
about/IN
Watergate/NNP
./.
Personally/RB
,/,
I/PRP
'm/VBP
irked/VBN
by/IN
its/PRP$
combination/NN
of/IN
ponderousness/NN
and/CC
timidity/NN
,/,
which/WDT
adds/VBZ
up/IN
to/TO
an/DT
utter/JJ
lack/NN
of/IN
drama/NN
./.
Sunday/NNP
,/,
Oct./NNP
29/CD
,/,
10-11/CD
p.m./NN
EST/NNP
,/,
on/IN
Showtime/NNP
Nov./NNP
2/CD
,/,
6/CD
,/,
11/CD
and/CC
15/CD
The/NNP
Strange/NNP
Case/NNP
of/IN
Dr./NNP
Jekyll/NNP
and/CC
Mr./NNP
Hyde/NNP
./.
''/''
Fans/NNS
of/IN
Anthony/NNP
Andrews/NNP
``/``
Brideshead/NNP
Revisited/NNP
''/''
)/)
will/MD
relish/VB
watching/VBG
him/PRP
play/VB
the/DT
title/NN
role/NN
(/(
s/PRP
the/DT
19th-century/NN
Robert/NNP
Louis/NNP
Stevenson/NNP
pre-Freudian/JJ
drama/NN
of/IN
schizoid/JJ
horror/NN
./.
Monday/NNP
,/,
Oct./NNP
30/CD
,/,
10-11/CD
p.m./NN
EST/NNP
,/,
on/IN
PBS/NNP
:/:
``/``
Journey/NNP
Into/NNP
Sleep/NNP
./.
''/''
I/PRP
promise/VBP
you/PRP
will/MD
stay/VB
awake/RB
through/IN
this/DT
intriguing/JJ
documentary/NN
about/IN
the/DT
science/NN
of/IN
sleep/NN
./.
Wednesday/NNP
,/,
Nov./NNP
1/CD
,/,
9-10:30/CD
p.m./NN
EST/NNP
,/,
on/IN
PBS/NNP
:/:
``/``
Thomas/NNP
Hart/NNP
Benton/NNP
./.
''/''
Critical/JJ
opinion/NN
is/VBZ
divided/VBN
about/IN
the/DT
success/NN
of/IN
Benton/NNP
's/POS
populist/JJ
defiance/NN
of/IN
modernist/JJ
art/NN
./.
But/CC
no/DT
one/NN
could/MD
disagree/VB
that/IN
Ken/NNP
Burns/NNP
has/VBZ
made/VBN
a/DT
fascinating/JJ
film/NN
about/IN
this/DT
famous/JJ
American/JJ
painter/NN
./.
Thursday/NNP
,/,
Nov./NNP
2/CD
,/,
9-10/CD
p.m./NN
EST/NNP
,/,
on/IN
A&E/NNP
1/CD
a.m./NN
and/CC
on/IN
Nov./NNP
5/CD
Third/NNP
and/CC
Oak/NNP
:/:
The/NNP
Pool/NNP
Hall/NNP
./.
''/''
A/DT
one-acter/JJ
by/IN
the/DT
Pulitzer/NNP
Prize-winning/JJ
playwright/NN
Marsha/NNP
Norman/NNP
is/VBZ
the/DT
first/JJ
presentation/NN
in/IN
a/DT
new/JJ
series/NN
called/VBN
``/``
American/NNP
Playwrights/NNP
Theater/NNP
,/,
''/''
sponsored/VBN
by/IN
General/NNP
Motors/NNPS
./.
James/NNP
Earl/NNP
Jones/NNP
and/CC
Mario/NNP
Van/NNP
Peebles/NNP
carry/VBP
out/IN
a/DT
bitter/JJ
intergenerational/JJ
dialogue/NN
between/IN
two/CD
black/JJ
men/NNS
./.
Thursdays/NNPS
,/,
Nov./NNP
2-23/CD
,/,
10-11/CD
p.m./NN
EST/NNP
,/,
on/IN
PBS/NNP
:/:
``/``
Taiwan/NNP
:/:
The/NNP
Other/NNP
China/NNP
./.
''/''
Judy/NNP
Woodruff/NNP
hosts/VBZ
this/DT
handsome/JJ
four-part/JJ
series/NN
about/IN
the/DT
history/NN
,/,
economy/NN
,/,
culture/NN
and/CC
politics/NNS
of/IN
the/DT
island/NN
home/NN
of/IN
Chinese/JJ
democracy/NN
and/CC
capitalism/NN
./.
Friday/NNP
,/,
Nov./NNP
3/CD
,/,
9-11/CD
p.m./NN
EST/NNP
,/,
on/IN
PBS/NNP
:/:
``/``
Our/NNP
Town/NNP
./.
''/''
Along/IN
with/IN
``/``
Show/NNP
Boat/NNP
,/,
''/''
``/``
Great/NNP
Performances/NNPS
''/''
kicks/VBZ
off/IN
its/PRP$
new/JJ
season/NN
with/IN
this/DT
Lincoln/NNP
Center/NNP
production/NN
of/IN
Thornton/NNP
Wilder/NNP
's/POS
best/JJS
known/VBN
play/NN
,/,
in/IN
which/WDT
the/DT
role/NN
of/IN
the/DT
small-town/JJ
Stage/NNP
Manager/NNP
is/VBZ
given/VBN
a/DT
hip/NN
twist/NN
by/IN
performance/NN
artist/NN
Spalding/NNP
Gray/NNP
./.
Saturday/NNP
,/,
Nov./NNP
4/CD
,/,
1:30-6/CD
p.m./NN
EST/NNP
,/,
on/IN
NBC/NNP
:/:
Breeder/NNP
's/POS
Cup/NNP
Day/NNP
./.
Polished/JJ
hooves/NNS
,/,
fancy/JJ
turf/NN
,/,
fat/JJ
purses/NNS
--/:
the/DT
horse/NN
race/NN
of/IN
the/DT
year/NN
./.
Sunday/NNP
,/,
Nov./NNP
5/CD
,/,
10:30/CD
a.m.-1:30/CD
p.m./NN
EST/NNP
,/,
on/IN
ABC/NNP
:/:
New/NNP
York/NNP
City/NNP
Marathon/NNP
./.
Shiny/NNP
Nikes/NNPS
,/,
cracked/VBN
cement/NN
,/,
media/NNS
glory/NN
--/:
the/DT
foot/NN
race/NN
of/IN
the/DT
year/NN
./.
Sunday/NNP
,/,
Nov./NNP
5/CD
,/,
8-9/CD
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EST/NNP
,/,
on/IN
TNT/NNP
:/:
``/``
Gary/NNP
Cooper/NNP
:/:
American/NNP
Life/NNP
,/,
American/NNP
Legend/NNP
./.
''/''
I/PRP
've/VBP
seen/VBN
a/DT
great/JJ
many/JJ
moviestar/NN
film/NN
portraits/NNS
,/,
and/CC
this/DT
one/CD
is/VBZ
outstanding/JJ
./.
Sundays/NNPS
,/,
Nov./NNP
5-12/CD
,/,
9-10:30/CD
p.m./NN
EST/NNP
,/,
on/IN
PBS/NNP
:/:
``/``
Glory/NNP
Enough/NNP
for/IN
All/NNP
./.
''/''
Can/MD
``/``
Masterpiece/NNP
Theatre/NNP
''/''
make/VB
a/DT
compelling/JJ
human/JJ
story/NN
out/IN
of/IN
the/DT
discovery/NN
of/IN
insulin/NN
?/.
This/DT
earthy/JJ
,/,
amusing/JJ
film/NN
answers/NNS
with/IN
a/DT
resounding/JJ
``/``
yes/RB
./.
''/''
Sunday/NNP
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Monday/NNP
,/,
Nov./NNP
5/CD
and/CC
6/CD
,/,
9-11/CD
p.m./NN
EST/NNP
,/,
on/IN
NBC/NNP
:/:
``/``
Cross/NNP
of/IN
Fire/NNP
./.
''/''
The/DT
Ku/NNP
Klux/NNP
Klan/NNP
was/VBD
revived/VBN
in/IN
the/DT
1920s/CD
as/IN
a/DT
national/JJ
organization/NN
aimed/VBN
at/IN
Catholics/NNPS
and/CC
Jews/NNPS
as/RB
well/RB
as/IN
blacks/NNS
./.
One/CD
reason/NN
for/IN
its/PRP$
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the/DT
murder/NN
trial/NN
of/IN
D.C./NNP
Stephenson/NNP
,/,
an/DT
Indiana/NNP
leader/NN
whose/WP$
reckless/JJ
career/NN
is/VBZ
depicted/VBN
in/IN
this/DT
film/NN
starring/VBG
Mel/NNP
Harris/NNP
John/NNP
Heard/NNP
./.
Tuesday/NNP
,/,
Nov./NNP
7/CD
,/,
8-9/CD
p.m./NN
EST/NNP
,/,
on/IN
PBS/NNP
:/:
``/``
Hurricane/NNP
!/.
''/''
Has/VBZ
the/DT
San/NNP
Francisco/NNP
earthquake/NN
caused/VBN
you/PRP
to/TO
forget/VB
Hugo/NNP
?/.
You/PRP
'll/MD
remember/VB
when/WRB
you/PRP
see/VBP
the/DT
stunning/JJ
footage/NN
taken/VBN
from/IN
inside/IN
a/DT
hurricane/NN
's/POS
eye/NN
,/,
in/IN
this/DT
edition/NN
of/IN
``/``
NOVA/NNP
./.
''/''
Merksamer/NNP
Jewelers/NNPS
Inc./NNP
,/,
a/DT
fast-growing/JJ
jewelry/NN
store/NN
chain/NN
,/,
filed/VBN
for/IN
Chapter/NN
11/CD
bankruptcy-law/NN
protection/NN
from/IN
creditors/NNS
,/,
apparently/RB
to/TO
speed/VB
a/DT
management/NN
buy-out/JJ
of/IN
the/DT
chain/NN
./.
The/DT
filing/NN
,/,
made/VBN
yesterday/NN

in/IN
U.S./NNP
Bankruptcy/NNP
Court/NNP
here/RB
,/,
follows/VBZ
an/DT
agreement/NN
by/IN
L.J./NNP
Hooker/NNP
Corp./NNP
,/,
Merksamer/NNP
's/POS
owner/NN
,/,
to/TO
sell/VB
the/DT
chain/NN
to/TO
management/NN
for/IN
an/DT
undisclosed/JJ
price/NN
./.
GE/NNP
Capital/NNP
Corp./NNP
,/,
a/DT
financial/JJ
services/NNS
subsidiary/JJ
of/IN
General/NNP
Electric/NNP
Co./NNP
,/,
is/VBZ
providing/VBG
Merksamer/NNP
management/NN
with/IN
$/$
15/CD
million/CD
in/IN
financing/NN
./.
L.J./NNP
Hooker/NNP
,/,
based/VBN
in/IN
Atlanta/NNP
,/,
filed/VBN
for/IN
Chapter/NN
11/CD
protection/NN
in/IN
August/NNP
and/CC
has/VBZ
also/RB
announced/VBN
its/PRP$
intention/NN
to/TO
sell/VB
its/PRP$
B./NNP
Altman/NNP
&/CC
Co./NNP
department/NN
store/NN
chain/NN
./.
L.J./NNP
Hooker/NNP
is/VBZ
owned/VBN
by/IN
Hooker/NNP
Corp./NNP
,/,
Sydney/NNP
,/,
Australia/NNP
,/,
which/WDT
itself/PRP
is/VBZ
currently/RB
being/VBG
managed/VBN
by/IN
a/DT
court-appointed/JJ
provisional/JJ
liquidator/NN
./.
L.J./NNP
Hooker/NNP
's/POS
planned/VBN
sale/NN
of/IN
Merksamer/NNP
is/VBZ
subject/JJ
to/TO
approval/NN
by/IN
Judge/NNP
Tina/NNP
Brozman/NNP
of/IN
U.S./NNP
Bankruptcy/NNP
Court/NNP
./.
Rumors/NNS
to/TO
the/DT
effect/NN
that/IN
the/DT
Merksamer/NNP
chain/NN
would/MD
file/VB
for/IN
Chapter/NN
11/CD
arose/VBD
last/JJ
week/NN
in/IN
the/DT
jewelry/NN
industry/NN
./.
At/IN
that/DT
time/NN
,/,
Sam/NNP
Merksamer/NNP
,/,
president/NN
of/IN
the/DT
chain/NN
,/,
angrily/RB
denied/VBD
that/IN
his/PRP$
company/NN
was/VBD
about/IN
to/TO
file/VB
./.
Mr./NNP
Merksamer/NNP
is/VBZ
leading/VBG
the/DT
buy-out/JJ
./.
According/VBG
to/TO
executives/NNS
close/RB
to/TO
the/DT
situation/NN
,/,
Merksamer/NNP
filed/VBD
for/IN
Chapter/NN
11/CD
to/TO
speed/VB
the/DT
sale/NN
of/IN
the/DT
chain/NN
./.
One/CD
executive/NN
said/VBD
an/DT
accord/NN
signed/VBN
by/IN
the/DT
unsecured/JJ
creditors/NNS
of/IN
L.J./NNP
Hooker/NNP
Corp./NNP
had/VBD
frozen/VBN
in/IN
place/NN
all/DT
of/IN
L.J./NNP
Hooker/NNP
's/POS
assets/NNS
./.
The/DT
Merksamer/NNP
bankruptcy-law/NN
filing/NN
appears/VBZ
to/TO
supersede/VB
that/DT
agreement/NN
./.
``/``
By/IN
filing/VBG
for/IN
Chapter/NN
11/CD
,/,
the/DT
Merksamer/NNP
chain/NN
will/MD
only/RB
need/VB
approval/NN
from/IN
a/DT
bankruptcy/NN
judge/NN
for/IN
the/DT
sale/NN
,/,
not/RB
the/DT
hundreds/NNS
of/IN
unsecured/JJ
creditors/NNS
,/,
''/''
said/VBD
this/DT
executive/NN
./.
``/``
The/DT
cash/NN
from/IN
the/DT
sale/NN
will/MD
go/VB
to/TO
L.J./NNP
Hooker/NNP
,/,
but/CC
the/DT
company/NN
itself/PRP
will/MD
belong/VB
to/TO
Sam/NNP
Merksamer/NNP
./.
''/''
Mr./NNP
Merksamer/NNP
and/CC
Sanford/NNP
Sigoloff/NNP
,/,
chief/NN
executive/NN
of/IN
L.J./NNP
Hooker/NNP
,/,
were/VBD
unavailable/JJ
for/IN
comment/NN
./.
In/IN
a/DT
statement/NN
,/,
Mr./NNP
Merksamer/NNP
described/VBD
the/DT
filing/NN
as/IN
a/DT
``/``
legal/JJ
technicality/NN
,/,
''/''
but/CC
also/RB
said/VBD
that/IN
``/``
our/PRP$
inability/NN
to/TO
obtain/VB
trade/NN
credit/NN
,/,
combined/VBN
with/IN
a/DT
need/NN
to/TO
ensure/VB
that/IN
our/PRP$
stores/NNS
were/VBD
properly/RB
stocked/VBN
for/IN
the/DT
Christmas/NNP
season/NN
,/,
necessitated/VBD
our/PRP$
filing/VBG
Chapter/NN
11/CD
./.
''/''
The/DT
jewelry/NN
chain/NN
,/,
which/WDT
is/VBZ
based/VBN
in/IN
Sacramento/NNP
,/,
Calif./NNP
,/,
had/VBD
revenue/NN
of/IN
$/$
62/CD
million/CD
and/CC
operating/VBG
profit/NN
of/IN
$/$
2.5/CD
million/CD
for/IN
the/DT
year/NN
ended/VBD
June/NNP
30/CD
./.
For/IN
all/DT
of/IN
this/DT
year/NN
's/POS
explosive/JJ
run-up/NN
in/IN
stock/NN
prices/NNS
,/,
Renaissance/NNP
Investment/NNP
Management/NNP
Inc./NNP
's/POS
computer/NN
sat/VBD
on/IN
the/DT
sidelines/NNS
./.
Now/RB
it/PRP
's/VBZ
on/IN
the/DT
fence/NN
./.
Renaissance/NNP
,/,
a/DT
Cincinnati-based/JJ
money/NN
manager/NN
,/,
began/VBD
buying/VBG
stocks/NNS
again/RB
this/DT
week/NN
with/IN
half/DT
of/IN
the/DT
$/$
1.8/CD
billion/CD
that/IN
it/PRP
oversees/VBZ
for/IN
clients/NNS
,/,
according/VBG
to/TO
people/NNS
familiar/JJ
with/IN
the/DT
firm/NN
's/POS
revised/VBN
strategy/NN
./.
It/PRP
was/VBD
the/DT
first/JJ
time/NN
since/IN
January/NNP
that/IN
Renaissance/NNP
has/VBZ
thought/VBN
stocks/NNS
are/VBP
worth/JJ
owning/NN
./.
Renaissance/NNP
declined/VBD
to/TO
confirm/VB
the/DT
move/NN
,/,
but/CC
its/PRP$
stock/NN
purchases/NNS
were/VBD
thought/VBN
to/TO
have/VB
begun/VBN
Tuesday/NNP
,/,
timed/VBD
to/TO
coincide/VB
with/IN
the/DT
maturity/NN
this/DT
week/NN
of/IN
Treasury/NNP
bills/NNS
owned/VBN
by/IN
the/DT
firm/NN
./.
The/DT
other/JJ
half/NN
of/IN
its/PRP$
portfolio/NN
is/VBZ
expected/VBN
to/TO
remain/VB
invested/VBN
in/IN
Treasury/NNP
bills/NNS
for/IN
the/DT
time/NN
being/VBG
./.
Wall/NNP
Street/NNP
executives/NNS
said/VBD
they/PRP
believed/VBD
that/DT
Renaissance/NNP
's/POS

$/$
900/CD
million/CD
buy/NN
program/NN
was/VBD
carried/VBN
out/IN
by/IN
PaineWebber/NNP
Inc/NNP
./.
As/IN
reported/VBN
,/,
PaineWebber/NNP
bought/VBD
shares/NNS
Tuesday/NNP
as/IN
part/NN
of/IN
a/DT
customer/NN
strategy/NN
shift/NN
,/,
although/IN
the/DT
broker/NN
's/POS
client/NN
was/VBD
said/VBD
then/RB
to/TO
have/VB
been/VBN
Japanese/NNP
./.
Yesterday/NN
,/,
PaineWebber/NNP
declined/VBD
comment/NN
./.
When/WRB
it/PRP
owns/VBZ
stocks/NNS
,/,
Renaissance/NNP
's/POS
portfolio/NN
typically/RB
is/VBZ
composed/VBN
of/IN
about/IN
60/CD
large-capitalization/NN
issues/NNS
;/:
to/TO
make/VB
buy/NN
or/CC
sell/NN
moves/NNS
,/,
the/DT
firm/NN
solicits/VBZ
Wall/NNP
Street/NNP
brokerage/NN
houses/NNS
a/DT
day/NN
or/CC
so/RB
in/IN
advance/NN
,/,
looking/VBG
for/IN
the/DT
best/JJS
package/NN
price/NN
to/TO
carry/VB
out/IN
the/DT
trades/NNS
./.
The/DT
broker/NN
winning/VBG
the/DT
business/NN
does/VBZ
n't/RB
charge/VB
commissions/NNS
,/,
but/CC
instead/RB
profits/VBZ
by/IN
buying/VBG
or/CC
selling/VBG
for/IN
less/JJR
than/IN
the/DT
overall/JJ
package/NN
price/NN
./.
That/DT
puts/VBZ
the/DT
broker/NN
at/IN
risk/NN
if/IN
it/PRP
's/VBZ
trying/VBG
to/TO
buy/VB
stock/NN
in/IN
a/DT
rising/VBG
market/NN
./.
In/IN
Tuesday/NNP
's/POS
gyrating/VBG
session/NN
,/,
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
fell/VBD
by/IN
80/CD
points/NNS
early/RB
in/IN
the/DT
day/NN
,/,
but/CC
finished/VBD
with/IN
less/RBR
than/IN
a/DT
four-point/JJ
loss/NN
./.
Renaissance/NNP
's/POS
last/JJ
portfolio/NN
shift/NN
,/,
carried/VBD
out/IN
by/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
,/,
was/VBD
a/DT
highly/RB
publicized/VBN
decision/NN
last/JJ
January/NNP
to/TO
sell/VB
its/PRP$
entire/JJ
stock/NN
portfolio/NN
and/CC
buy/VB
Treasury/NNP
bills/NNS
./.
The/DT
sell/NN
signal/NN
,/,
which/WDT
sent/VBD
a/DT
bearish/JJ
chill/NN
through/IN
the/DT
stock/NN
market/NN
,/,
came/VBD
when/WRB
Renaissance/NNP
's/POS
computer/NN
found/VBD
that/IN
stocks/NNS
were/VBD
overpriced/VBN
compared/VBN
with/IN
bonds/NNS
and/CC
Treasury/NNP
bills/NNS
./.
At/IN
the/DT
time/NN
,/,
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
stood/VBD
at/IN
about/IN
2200/CD
./.
The/DT
Dow/NNP
average/NN
now/RB
stands/VBZ
more/RBR
than/IN
20/CD
%/NN
higher/JJR
,/,
while/IN
Renaissance/NNP
's/POS
portfolio/NN
of/IN
Treasurys/NNPS
produced/VBD
a/DT
return/NN
of/IN
about/IN
6/CD
%/NN
through/IN
the/DT
first/JJ
three/CD
quarters/NNS
of/IN
the/DT
year/NN
./.
The/DT
computer/NN
's/POS
miscalculation/NN
has/VBZ
been/VBN
painful/JJ
for/IN
Renaissance/NNP
./.
Almost/RB
any/DT
money/NN
manager/NN
holding/VBG
stocks/NNS
has/VBZ
turned/VBN
in/IN
better/JJR
results/NNS
,/,
while/IN
Renaissance/NNP
has/VBZ
played/VBN
it/PRP
safe/JJ
with/IN
Treasury/NNP
bills/NNS
./.
So/RB
why/WRB
does/VBZ
Renaissance/NNP
's/POS
computer/NN
like/IN
stocks/NNS
with/IN
the/DT
Dow/NNP
at/IN
2653.28/CD
,/,
where/WRB
it/PRP
closed/VBD
yesterday/NN
,/,
when/WRB
it/PRP
did/VBD
n't/RB
with/IN
the/DT
Dow/NNP
at/IN
2200/CD
?/.
``/``
With/IN
the/DT
decline/NN
in/IN
stock/NN
prices/NNS
and/CC
continued/VBD
low/JJ
or/CC
stable/JJ
interest/NN
rates/NNS
,/,
stocks/NNS
are/VBP
representing/VBG
a/DT
better/JJR
value/NN
all/PDT
the/DT
time/NN
,/,
''/''
Renaissance/NNP
President/NNP
Frank/NNP
W./NNP
Terrizzi/NNP
said/VBD
yesterday/NN
./.
Three-month/JJ
T-bill/NNP
yields/NNS
have/VBP
fallen/VBN
to/TO
7.8/CD
%/NN
from/IN
about/IN
9/CD
%/NN
at/IN
the/DT
start/NN
of/IN
the/DT
year/NN
./.
Stock/NN
prices/NNS
,/,
meanwhile/RB
,/,
are/VBP
about/IN
140/CD
points/NNS
lower/JJR
than/IN
the/DT
peak/NN
of/IN
2791.41/CD
reached/VBD
on/IN
the/DT
Dow/NNP
industrial/JJ
average/NN
Oct./NNP
9/CD
./.
Are/VBP
those/DT
declines/NNS
enough/RB
to/TO
signal/VB
a/DT
partial/JJ
return/NN
to/TO
stocks/NNS
?/.
Mr./NNP
Terrizzi/NNP
wo/MD
n't/RB
say/VB
specifically/RB
,/,
explaining/VBG
that/IN
if/IN
there/EX
was/VBD
such/JJ
a/DT
move/NN
,/,
it/PRP
would/MD
take/VB
about/IN
three/CD
days/NNS
to/TO
complete/VB
the/DT
loose/JJ
ends/NNS
of/IN
the/DT
transaction/NN
./.
During/IN
that/DT
time/NN
,/,
a/DT
buyer/NN
with/IN
the/DT
clout/NN
of/IN
a/DT
Renaissance/NNP
could/MD
end/VB
up/IN
driving/VBG
up/IN
the/DT
price/NN
of/IN
stocks/NNS
it/PRP
was/VBD
trying/VBG
to/TO
buy/VB
if/IN
it/PRP
tipped/VBD
its/PRP$
hand/NN
./.
But/CC
everything/NN
is/VBZ
relative/JJ
to/TO
Mr./NNP
Terrizzi/NNP
,/,
so/IN
stocks/NNS
in/IN
his/PRP$
view/NN
can/MD
become/VB
more/RBR
attractive/JJ
in/IN
comparison/NN
with/IN
bonds/NNS
or/CC
T-bills/NNS
,/,
even/RB
if/IN
shares/NNS
are/VBP
more/RBR
expensive/JJ
than/IN
when/WRB
they/PRP
were/VBD
sold/VBN
in/IN
January/NNP
./.
``/``
Our/PRP$
computer/NN
model/NN
has/VBZ
a/DT
certain/JJ
trigger/NN
point/NN
,/,
''/''
he/PRP
said/VBD
./.
When/WRB
the/DT
computer/NN
says/VBZ
switch/VB
,/,
Renaissance/NNP
switches/VBZ
./.
The/DT
firm/NN
has/VBZ
made/VBN
17/CD
previous/JJ
shifts/NNS
from/IN
one/CD
type/NN
of/IN
asset/NN
to/TO
another/DT
in/IN
its/PRP$
10-year/JJ
history/NN
./.
Almost/RB
all/DT
have/VBP
involved/VBN
at/IN
least/JJS
half/NN
and/CC
often/RB
the/DT
firm/NN
's/POS
entire/JJ
portfolio/NN
,/,
as/IN
the/DT
computer/NN
searches/VBZ
for/IN
the/DT
most/RBS
undervalued/VBN
investment/NN
category/NN
,/,
following/VBG
a/DT
money-management/JJ
style/NN
called/VBN
tactical/JJ
asset/NN
allocation/NN
./.
Competing/VBG
asset-allocation/JJ
firms/NNS
march/VBP
to/TO
their/PRP$
own/JJ
computer/NN
models/NNS
,/,
so/IN
some/DT
have/VBP
been/VBN
partly/RB
or/CC
fully/RB
invested/VBN
in/IN
stocks/NNS
this/DT
year/NN
while/IN
Renaissance/NNP
has/VBZ
sat/VBN
on/IN
the/DT
sidelines/NNS
./.
As/IN
a/DT
result/NN
,/,
competitors/NNS
say/VBP
Renaissance/NNP
has/VBZ
been/VBN
looking/VBG
for/IN
any/DT
opportunity/NN
to/TO
return/VB
to/TO
the/DT
stock/NN
market/NN
,/,
rather/RB
than/IN
risk/NN
losing/VBG
business/NN
by/IN
continuing/VBG
to/TO
remain/VB
fully/RB
invested/VBN
in/IN
Treasury/NNP
bills/NNS
./.
Mr./NNP
Terrizzi/NNP
confirms/VBZ
some/DT
clients/NNS
have/VBP
left/VBN
Renaissance/NNP
,/,
but/CC
no/DT
major/JJ
ones/NNS
,/,
and/CC
the/DT
firm/NN
has/VBZ
added/VBN
new/JJ
accounts/NNS
./.
David/NNP
Evans/NNP
,/,
who/WP
last/JJ
week/NN
resigned/VBD
as/IN
president/NN
and/CC
chief/NN
executive/NN
of/IN
Qintex/NNP
Entertainment/NNP
Inc./NNP
``/``
for/IN
personal/JJ
reasons/NNS
''/''
just/RB
as/IN
the/DT
company/NN
filed/VBN
for/IN
bankruptcy-law/NN
protection/NN
,/,
has/VBZ
been/VBN
temporarily/RB
reappointed/VBN
to/TO
both/DT
positions/NNS
,/,
the/DT
company/NN
said/VBD
./.
Qintex/NNP
Entertainment/NNP
also/RB
said/VBD
Chief/NNP
Financial/NNP
Officer/NNP
and/CC
Treasurer/NNP
Jonathan/NNP
Lloyd/NNP
,/,
37/CD
years/NNS
old/JJ
,/,
would/MD
join/VB
the/DT
nine-member/JJ
board/NN
./.
He/PRP
succeeds/VBZ
Roger/NNP
Kimmel/NNP
,/,
who/WP
resigned/VBD
last/JJ
week/NN
saying/VBG
his/PRP$
participation/NN
in/IN
evaluating/VBG
the/DT
company/NN
's/POS
role/NN
in/IN
buying/VBG
MGM\/UA/NNP
Communications/NNPS
Co./NNP
was/VBD
no/DT
longer/RB
necessary/JJ
./.
Mr./NNP
Evans/NNP
will/MD
stay/VB
until/IN
a/DT
successor/NN
is/VBZ
found/VBN
,/,
but/CC
not/RB
later/RB
than/IN
the/DT
end/NN
of/IN
the/DT
year/NN
,/,
the/DT
company/NN
said/VBD
./.
It/PRP
was/VBD
the/DT
49-year-old/JJ
Mr./NNP
Evans/NNP
who/WP
had/VBD
moved/VBN
into/IN
the/DT
offices/NNS
of/IN
MGM\/UA/NNP
and/CC
run/VBN
the/DT
company/NN
during/IN
Qintex/NNP
Australia/NNP
Ltd./NNP
's/POS
aborted/JJ
bid/NN
for/IN
the/DT
movie/NN
company/NN
./.
After/IN
MGM\/UA/NNP
terminated/VBD
the/DT
$/$
1.5/CD
billion/CD
merger/NN
because/IN
of/IN
a/DT
dispute/NN
over/IN
a/DT
$/$
50/CD
million/CD
letter/NN
of/IN
credit/NN
,/,
Qintex/NNP
Entertainment/NNP
--/:
which/WDT
is/VBZ
43%-owned/JJ
by/IN
Qintex/NNP
Australia/NNP
--/:
found/VBD
itself/PRP
facing/VBG
problems/NNS
of/IN
its/PRP$
own/JJ
./.
And/CC
the/DT
relationship/NN
between/IN
Qintex/NNP
Entertainment/NNP
and/CC
the/DT
Australian/JJ
company/NN
appears/VBZ
to/TO
be/VB
quickly/RB
deteriorating/VBG
./.
On/IN
Oct./NNP
19/CD
,/,
Qintex/NNP
Entertainment/NNP
was/VBD
about/IN
to/TO
default/VB
on/IN
a/DT
$/$
5.9/CD
million/CD
payment/NN
owed/VBN
to/TO
MCA/NNP
Inc./NNP
in/IN
connection/NN
with/IN
the/DT
distribution/NN
of/IN
a/DT
television/NN
program/NN
./.
Qintex/NNP
Entertainment/NNP
was/VBD
depending/VBG
on/IN
Qintex/NNP
Australia/NNP
to/TO
arrange/VB
financing/NN
./.
But/CC
early/RB
on/IN
Oct./NNP
19/CD
,/,
the/DT
second/JJ
of/IN
two/CD
hectic/JJ
days/NNS
of/IN
board/NN
meetings/NNS
,/,
Mr./NNP
Evans/NNP
said/VBD
he/PRP
believed/VBD
Qintex/NNP
Australia/NNP
would/MD
n't/RB
be/VB
forthcoming/JJ
./.
He/PRP
recommended/VBD
that/IN
the/DT
company/NN
file/NN
for/IN
protection/NN
under/IN
Chapter/NN
11/CD
of/IN
the/DT
U.S./NNP
Bankruptcy/NNP
Code/NNP
before/IN
the/DT
MCA/NNP
deadline/NN
,/,
according/VBG
to/TO
a/DT
source/NN
familiar/JJ
with/IN
the/DT
sessions/NNS
./.
But/CC
a/DT
majority/NN
of/IN
the/DT
board/NN
,/,
which/WDT
includes/VBZ
three/CD
members/NNS
from/IN
the/DT
Australian/JJ
company/NN
,/,
overrode/VBD
him/PRP
./.
Mr./NNP
Evans/NNP
resigned/VBD
./.
Later/RB
in/IN
the/DT
day/NN
,/,
according/VBG
to/TO
the/DT
source/NN
,/,
the/DT
board/NN
reversed/VBD
itself/PRP
,/,
decided/VBD
to/TO
file/VB
for/IN
bankruptcy/NN
protection/NN
,/,
and/CC
asked/VBD
Mr./NNP
Evans/NNP
to/TO
stay/VB
on/IN
./.
Mr./NNP
Evans/NNP
told/VBD
the/DT
board/NN
he/PRP
needed/VBD
the/DT
weekend/NN
to/TO
think/VB
about/IN
it/PRP
./.
Mr./NNP
Evans/NNP
could/MD
n't/RB
be/VB
reached/VBN
yesterday/NN
for/IN
comment/NN
./.
Last/JJ
Monday/NNP
,/,
Qintex/NNP
Australia/NNP
announced/VBD
a/DT
restructuring/VBG
plan/NN
and/CC
said/VBD
it/PRP
would/MD
sell/VB
off/IN
assets/NNS
./.
Last/JJ
week/NN
the/DT
company/NN
indicated/VBD
it/PRP
would/MD
cut/VB
back/RB
on/IN
the/DT
working/VBG
capital/NN
it/PRP
would/MD
supply/VB
to/TO
Qintex/NNP
Entertainment/NNP
./.
Separately/RB
,/,
a/DT
Qintex/NNP
Entertainment/NNP
shareholder/NN
filed/VBD
suit/NN
in/IN
federal/JJ
court/NN
in/IN
Los/NNP
Angeles/NNP
charging/VBG
Qintex/NNP
Australia/NNP
with/IN
misleading/VBG
shareholders/NNS
about/IN
Qintex/NNP
Entertainment/NNP
's/POS
financial/JJ
position/NN
./.
Qintex/NNP
Australia/NNP
said/VBD
it/PRP
had/VBD
n't/RB
seen/VBN
the/DT
suit/NN
and/CC
could/MD
n't/RB
comment/VB
./.
The/DT
Sept./NNP
25/CD
``/``
Tracking/NNP
Travel/NNP
''/''
column/NN
advises/VBZ
readers/NNS
to/TO
``/``
Charge/VB
With/IN
Caution/NN
When/WRB
Traveling/VBG
Abroad/RB
''/''
because/IN
credit-card/NN
companies/NNS
charge/VBP
1/CD
%/NN
to/TO
convert/VB
foreign-currency/NN
expenditures/NNS
into/IN
dollars/NNS
./.
In/IN
fact/NN
,/,
this/DT
is/VBZ
the/DT
best/JJS
bargain/NN
available/JJ
to/TO
someone/NN
traveling/VBG
abroad/RB
./.
In/IN
contrast/NN
to/TO
the/DT
1/CD
%/NN
conversion/NN
fee/NN
charged/VBN
by/IN
Visa/NNP
,/,
foreign-currency/NN
dealers/NNS
routinely/RB
charge/VBP
7/CD
%/NN
or/CC
more/JJR
to/TO
convert/VB
U.S./NNP
dollars/NNS
into/IN
foreign/JJ
currency/NN
./.
On/IN
top/NN
of/IN
this/DT
,/,
the/DT
traveler/NN
who/WP
converts/VBZ
his/PRP$
dollars/NNS
into/IN
foreign/JJ
currency/NN
before/IN
the/DT
trip/NN
starts/VBP
will/MD
lose/VB
interest/NN
from/IN
the/DT
day/NN
of/IN
conversion/NN
./.
At/IN
the/DT
end/NN
of/IN
the/DT
trip/NN
,/,
any/DT
unspent/JJ
foreign/JJ
exchange/NN
will/MD
have/VB
to/TO
be/VB
converted/VBN
back/RB
into/IN
dollars/NNS
,/,
with/IN
another/DT
commission/NN
due/RB
./.
The/DT
card/NN
holder/NN
will/MD
pay/VB
the/DT
modest/JJ
1/CD
%/NN
fee/NN
only/RB
on/IN
the/DT
amounts/NNS
actually/RB
needed/VBN
./.
Typically/RB
,/,
he/PRP
will/MD
be/VB
billed/VBN
only/RB
several/JJ
weeks/NNS
after/IN
the/DT
expenditure/NN
,/,
and/CC
then/RB
has/VBZ
another/DT
couple/NN
of/IN
weeks/NNS
before/IN
he/PRP
has/VBZ
to/TO
pay/VB
the/DT
bill/NN
./.
In/IN
the/DT
meantime/NN
,/,
the/DT
money/NN
can/MD
continue/VB
to/TO
earn/VB
interest/NN
for/IN
the/DT
card/NN
holder/NN
--/:
often/RB
more/RBR
than/IN
1/CD
%/NN
during/IN
that/DT
``/``
float/NN
''/''
period/NN
alone/RB
./.
Daniel/NNP
Brigham/NNP
Visa/NNP
U.S.A./NNP
Inc/NNP
./.
San/NNP
Francisco/NNP
MGM/NNP
Grand/NNP
Inc./NNP
has/VBZ
agreed/VBN
to/TO
pay/VB
$/$
93/CD
million/CD
and/CC
nearly/RB
1.8/CD
million/CD
common/JJ
shares/NNS
to/TO
buy/VB
117/CD
acres/NNS
of/IN
land/NN
along/IN
the/DT
Las/NNP
Vegas/NNP
,/,
Nev./NNP
,/,
Strip/NNP
as/IN
a/DT
site/NN
for/IN
its/PRP$
planned/VBN
movie-studio/NN
and/CC
theme-park/NN
resort/NN
./.
Of/IN
the/DT
total/JJ
purchase/NN
price/NN
,/,
$/$
50/CD
million/CD
cash/NN
and/CC
$/$
30/CD
million/CD
in/IN
stock/NN
1.8/CD
million/CD
shares/NNS
the/DT
existing/VBG
700-room/JJ
Marina/NNP
Hotel/NNP
&/CC
Casino/NNP
from/IN
Southwest/NNP
Securities/NNPS
,/,
a/DT
Nevada/NNP
limited/VBD
partnership/NN
./.
The/DT
remaining/VBG
properties/NNS
to/TO
be/VB
acquired/VBN
are/VBP
the/DT
Tropicana/NNP
Country/NNP
Club/NNP
&/CC
Golf/NNP
Course/NNP
,/,
a/DT
facility/NN
jointly/RB
owned/VBN
by/IN
Ramada/NNP
Inc./NNP
,/,
of/IN
Phoenix/NNP
,/,
Ariz./NNP
,/,
and/CC
the/DT
Jaffe/NNP
family/NN
,/,
and/CC
a/DT
small/JJ
parcel/NN
owned/VBN
by/IN
MGM/NNP
Grand/NNP
director/NN
James/NNP
D./NNP
Aljian/NNP
./.
The/DT
purchase/NN
price/NN
was/VBD
disclosed/VBN
in/IN
a/DT
preliminary/JJ
prospectus/NN
issued/VBN
in/IN
connection/NN
with/IN
MGM/NNP
Grand/NNP
's/POS
planned/VBN
offering/NN
of/IN
six/CD
million/CD
common/JJ
shares/NNS
./.
The/DT
luxury/NN
airline/NN
and/CC
casino/NN
company/NN
,/,
98.6%-owned/JJ
by/IN
investor/NN
Kirk/NNP
Kerkorian/NNP
and/CC
his/PRP$
Tracinda/NNP
Corp./NNP
,/,
earlier/RBR
this/DT
month/NN
announced/VBD
its/PRP$
agreements/NNS
to/TO
acquire/VB
the/DT
properties/NNS
,/,
but/CC
did/VBD
n't/RB
disclose/VB
the/DT
purchase/NN
price/NN
./.
The/DT
proposed/VBN
stock/NN
offering/VBG
and/CC
issuance/NN
of/IN
nearly/RB
1.8/CD
million/CD
common/JJ
shares/NNS
in/IN
connection/NN
with/IN
the/DT
land/NN
purchase/NN
will/MD
bring/VB
MGM/NNP
Grand/NNP
's/POS
total/JJ
shares/NNS
outstanding/JJ
to/TO
28.7/CD
million/CD
,/,
of/IN
which/WDT
72/CD
%/NN
will/MD
be/VB
owned/VBN
by/IN
Mr./NNP
Kerkorian/NNP
and/CC
Tracinda/NNP
,/,
according/VBG
to/TO
the/DT
prospectus/NN
./.
In/IN
over-the-counter/JJ
trading/NN
,/,
MGM/NNP
Grand/NNP
was/VBD
bid/VBN
at/IN
$/$
17.50/CD
a/DT
share/NN
./.
Proceeds/NNS
from/IN
the/DT
offering/NN
are/VBP
expected/VBN
to/TO
be/VB
used/VBN
for/IN
remodeling/VBG
the/DT
company/NN
's/POS
Desert/NNP
Inn/NNP
resort/NN
in/IN
Las/NNP
Vegas/NNP
,/,
refurbishing/VBG
certain/JJ
aircraft/NN
of/IN
the/DT
MGM/NNP
Grand/NNP
Air/NNP
unit/NN
,/,
and/CC
to/TO
acquire/VB
the/DT
property/NN
for/IN
the/DT
new/JJ
resort/NN
./.
The/DT
company/NN
said/VBD
it/PRP
estimates/VBZ
the/DT
Desert/NNP
Inn/NNP
remodeling/NN
will/MD
cost/VB
about/IN
$/$
32/CD
million/CD
,/,
and/CC
the/DT
refurbishment/NN
of/IN
the/DT
three/CD
DC-8-62/NN
aircraft/NN
,/,
made/VBN
by/IN
McDonnell/NNP
Douglas/NNP
Corp./NNP
,/,
will/MD
cost/VB
around/IN
$/$
24.5/CD
million/CD
./.
MGM/NNP
Grand/NNP
said/VBD
the/DT
latest/JJS
stock/NN
offering/NN
wo/MD
n't/RB
cover/VB
the/DT
$/$
600/CD
million/CD
or/CC
more/JJR
cost/NN
of/IN
building/VBG
the/DT
proposed/VBN
resort/NN
and/CC
theme/NN
park/NN
,/,
and/CC
added/VBD
it/PRP
will/MD
need/VB
to/TO
seek/VB
additional/JJ
financing/NN
,/,
either/CC
through/IN
bank/NN
borrowings/NNS
or/CC
debt/NN
and/CC
equity/NN
offerings/NNS
,/,
at/IN
a/DT
later/JJ
date/NN
./.
Construction/NN
is/VBZ
set/VBN
to/TO
begin/VB
in/IN
early/JJ
1991/CD
./.
The/DT
resort/NN
will/MD
include/VB
the/DT
MGM/NNP
Grand/NNP
Hotel/NNP
,/,
a/DT
multi-spired/JJ
,/,
castle-like/JJ
facility/NN
that/WDT
will/MD
include/VB
5,000/CD
rooms/NNS
and/CC
85,000/CD
square/JJ
feet/NNS
of/IN
casino/NN
space/NN
./.
The/DT
facility/NN
will/MD
be/VB
marketed/VBN
toward/IN
families/NNS
,/,
and/CC
room/NN
rates/NNS
will/MD
be/VB
between/IN
$/$
35/CD
and/CC
$/$
55/CD
a/DT
night/NN
,/,
MGM/NNP
Grand/NNP
said/VBD
./.
The/DT
prospectus/NN
did/VBD
n't/RB
include/VB
many/JJ
details/NNS
about/IN
the/DT
studio/NN
and/CC
theme/NN
park/NN
,/,
although/IN
conceptual/JJ
drawings/NNS
,/,
released/VBN
this/DT
month/NN
,/,
show/VBP
that/IN
it/PRP
may/MD
feature/VB
several/JJ
``/``
themed/VBN
''/''
areas/NNS
similar/JJ
to/TO
those/DT
found/VBN
at/IN
parks/NNS
built/VBN
by/IN
Walt/NNP
Disney/NNP
Co/NNP
./.
Investors/NNS
poured/VBD
$/$
2.8/CD
billion/CD
more/RBR
into/IN
money-market/JJ
mutual/JJ
funds/NNS
in/IN
the/DT
latest/JJS
week/NN
despite/IN
further/JJ
declines/NNS
in/IN
yields/NNS
./.
Assets/NNS
of/IN
the/DT
400/CD
taxable/JJ
funds/NNS
tracked/VBN
by/IN
IBC\/Donoghue/NNP
's/POS
Money/NNP
Fund/NNP
Report/NNP
jumped/VBD
to/TO
$/$
351.2/CD
billion/CD
in/IN
the/DT
week/NN
ended/VBD
Tuesday/NNP
,/,
the/DT
Holliston/NNP
,/,
Mass.-based/JJ
newsletter/NN
said/VBD
./.
Assets/NNS
soared/VBD
$/$
4.5/CD
billion/CD
in/IN
the/DT
previous/JJ
week/NN
./.
Meanwhile/RB
,/,
the/DT
average/JJ
yield/NN
on/IN
taxable/JJ
funds/NNS
dropped/VBD
nearly/RB
a/DT
tenth/NN
of/IN
a/DT
percentage/NN
point/NN
,/,
the/DT
largest/JJS
drop/NN
since/IN
midsummer/NN
./.
The/DT
average/JJ
seven-day/JJ
compound/NN
yield/NN
,/,
which/WDT
assumes/VBZ
that/IN
dividends/NNS
are/VBP
reinvested/VBN
and/CC
that/IN
current/JJ
rates/NNS
continue/VBP
for/IN
a/DT
year/NN
,/,
fell/VBD
to/TO
8.47/CD
%/NN
,/,
its/PRP$
lowest/JJS
since/IN
late/JJ
last/JJ
year/NN
,/,
from/IN
8.55/CD
%/NN
the/DT
week/NN
before/IN
,/,
according/VBG
to/TO
Donoghue/NNP
's/POS
./.
``/``
Lower/JJR
yields/NNS
are/VBP
just/RB
reflecting/VBG
lower/JJR
short-term/JJ
interest/NN
rates/NNS
,/,
''/''
said/VBD
Brenda/NNP
Malizia/NNP
Negus/NNP
,/,
editor/NN
of/IN
Money/NNP
Fund/NNP
Report/NNP
./.
Money/NNP
funds/NNS
invest/VBP
in/IN
such/JJ
things/NNS
as/IN
short-term/JJ
Treasury/NNP
securities/NNS
,/,
commercial/JJ
paper/NN
and/CC
certificates/NNS
of/IN
deposit/NN
,/,
all/DT
of/IN
which/WDT
have/VBP
been/VBN
posting/VBG
lower/JJR
interest/NN
rates/NNS
since/IN
last/JJ
spring/NN
./.
Individual/JJ
investors/NNS
can/MD
still/RB
get/VB
better/JJR
yields/NNS
on/IN
money/NN
funds/NNS
than/IN
on/IN
many/JJ
other/JJ
short-term/JJ
instruments/NNS
./.
The/DT
yield/NN
on/IN
six-month/JJ
Treasury/NNP
bills/NNS
sold/VBN
at/IN
Monday/NNP
's/POS
auction/NN
,/,
for/IN
example/NN
,/,
was/VBD
just/RB
7.77/CD
%/NN
./.
The/DT
average/JJ
yield/NN
on/IN
six-month/JJ
CDs/NNS
of/IN
$/$
50,000/CD
or/CC
less/JJR
at/IN
major/JJ
banks/NNS
was/VBD
7.96/CD
%/NN
in/IN
the/DT
week/NN
ended/VBD
Tuesday/NNP
,/,
according/VBG
to/TO
Banxquote/NNP
Money/NNP
Markets/NNPS
,/,
a/DT
New/NNP
York/NNP
information/NN
service/NN
./.
One/CD
way/NN
that/IN
money/NN
fund/NN
managers/NNS
boost/VBP
yields/NNS
in/IN
a/DT
declining/VBG
rate/NN
environment/NN
is/VBZ
by/IN
extending/VBG
the/DT
maturities/NNS
of/IN
their/PRP$
investments/NNS
,/,
so/IN
they/PRP
can/MD
earn/VB
the/DT
current/JJ
higher/JJR
rates/NNS
for/IN
a/DT
longer/JJR
period/NN
./.
The/DT
average/JJ
maturity/NN
of/IN
the/DT
taxable/JJ
funds/NNS
that/DT
Donoghue/NNP
's/POS
follows/VBZ
increased/VBN
by/IN
two/CD
days/NNS
in/IN
the/DT
latest/JJS
week/NN
to/TO
40/CD
days/NNS
,/,
its/PRP$
longest/JJS
since/IN
August/NNP
./.
``/``
They/PRP
're/VBP
anticipating/VBG
further/JJ
declines/NNS
in/IN
rates/NNS
and/CC
they/PRP
're/VBP
going/VBG
to/TO
get/VB
them/PRP
,/,
slowly/RB
,/,
''/''
said/VBD
Walter/NNP
Frank/NNP
,/,
chief/NN
economist/NN
for/IN
the/DT
Donoghue/NNP
Organization/NNP
,/,
publisher/NN
of/IN
Money/NNP
Fund/NNP
Report/NNP
./.
Average/JJ
maturity/NN
was/VBD
as/RB
short/JJ
as/IN
29/CD
days/NNS
at/IN
the/DT
start/NN
of/IN
this/DT
year/NN
,/,
when/WRB
short-term/JJ
interest/NN
rates/NNS
were/VBD
moving/VBG
steadily/RB
upward/RB
./.
The/DT
average/JJ
seven-day/JJ
compound/NN
yield/NN
of/IN
the/DT
funds/NNS
reached/VBD
9.62/CD
%/NN
in/IN
late/JJ
April/NNP
./.
The/DT
highest-yielding/JJ
funds/NNS
are/VBP
still/RB
above/IN
9/CD
%/NN
./.
The/DT
top-performing/JJ
fund/NN
in/IN
the/DT
latest/JJS
week/NN
was/VBD
Dreyfus/NNP
Worldwide/NNP
Dollar/NNP
,/,
with/IN
a/DT
seven-day/JJ
compound/NN
yield/NN
of/IN
9.45/CD
%/NN
./.
The/DT
fund/NN
invests/VBZ
heavily/RB
in/IN
dollar-denominated/JJ
money-market/JJ
securities/NNS
overseas/RB
./.
It/PRP
is/VBZ
currently/RB
waiving/VBG
management/NN
fees/NNS
,/,
which/WDT
contributes/VBZ
to/TO
the/DT
higher/JJR
yield/NN
./.
The/DT
average/JJ
seven-day/JJ
simple/JJ
yield/NN
of/IN
the/DT
400/CD
funds/NNS
fell/VBD
to/TO
8.14/CD
%/NN
from/IN
8.21/CD
%/NN
,/,
Donoghue/NNP
's/POS
reported/VBD
./.
The/DT
average/JJ
30-day/JJ
simple/JJ
yield/NN
slid/VBD
to/TO
8.22/CD
%/NN
from/IN
8.26/CD
%/NN
,/,
and/CC
the/DT
average/JJ
30-day/JJ
compound/NN
yield/NN
fell/VBD
to/TO
8.56/CD
%/NN
from/IN
8.60/CD
%/NN
./.
Many/JJ
small/JJ
investors/NNS
are/VBP
facing/VBG
a/DT
double/JJ
whammy/NN
this/DT
year/NN
:/:
They/PRP
got/VBD
hurt/VBN
by/IN
investing/VBG
in/IN
the/DT
highly/RB
risky/JJ
junk/NN
bond/NN
market/NN
,/,
and/CC
the/DT
pain/NN
is/VBZ
worse/JJR
because/IN
they/PRP
did/VBD
it/PRP
with/IN
borrowed/VBN
money/NN
./.
These/DT
people/NNS
invested/VBD
in/IN
``/``
leveraged/JJ
''/''
junk/NN
bond/NN
mutual/JJ
funds/NNS
,/,
the/DT
publicly/RB
traded/VBN
funds/NNS
that/WDT
make/VBP
a/DT
habit/NN
of/IN
taking/VBG
out/IN
loans/NNS
to/TO
buy/VB
extra/JJ
junk/NN
./.
It/PRP
's/VBZ
a/DT
good/JJ
strategy/NN
in/IN
a/DT
rising/VBG
market/NN
,/,
where/WRB
a/DT
25/CD
%/NN
leveraged/JJ
portfolio/NN
in/IN
effect/NN
allows/VBZ
investors/NNS
to/TO
have/VB
125/CD
%/NN
of/IN
their/PRP$
money/NN
working/VBG
for/IN
them/PRP
./.
The/DT
strategy/NN
boosts/VBZ
current/JJ
yield/NN
by/IN
putting/VBG
more/JJR
bonds/NNS
into/IN
the/DT
portfolio/NN
./.
Trouble/NN
is/VBZ
,/,
junk/NN
bond/NN
prices/NNS
have/VBP
been/VBN
weak/JJ
for/IN
months/NNS
./.
Thus/RB
,/,
the/DT
leverage/NN
has/VBZ
amplified/VBN
the/DT
funds/NNS
'/POS
portfolio/NN
losses/NNS
./.
And/CC
shares/NNS
of/IN
leveraged/JJ
junk/NN
funds/NNS
this/DT
year/NN
have/VBP
been/VBN
clobbered/VBN
even/RB
harder/RBR
than/IN
the/DT
junk/NN
bonds/NNS
they/PRP
hold/VBP
./.
``/``
That/DT
's/VBZ
really/RB
where/WRB
the/DT
leverage/NN
hurt/VBD
,/,
''/''
says/VBZ
Thomas/NNP
Herzfeld/NNP
,/,
a/DT
Miami-based/JJ
investment/NN
manager/NN
who/WP
specializes/VBZ
in/IN
closed-end/JJ
funds/NNS
./.
``/``
Share/NN
prices/NNS
performed/VBD
even/RB
worse/RBR
than/IN
the/DT
funds/NNS
'/POS
asset/NN
values/NNS
because/IN
fear/NN
has/VBZ
taken/VBN
hold/NN
''/''
in/IN
the/DT
junk/NN
market/NN
,/,
he/PRP
says/VBZ
./.
Leverage/NN
is/VBZ
never/RB
a/DT
problem/NN
for/IN
the/DT
traditional/JJ
``/``
open/JJ
end/NN
''/''
mutual/JJ
funds/NNS
,/,
which/WDT
are/VBP
n't/RB
publicly/RB
traded/VBN
and/CC
are/VBP
n't/RB
allowed/VBN
to/TO
use/VB
leverage/NN
at/IN
all/DT
./.
Leverage/NN
is/VBZ
used/VBN
only/RB
by/IN
some/DT
of/IN
the/DT
closed-end/JJ
funds/NNS
./.
The/DT
usual/JJ
maneuver/NN
is/VBZ
to/TO
borrow/VB
against/IN
the/DT
portfolio/NN
value/NN
or/CC
issue/VB
preferred/VBN
stock/NN
,/,
using/VBG
the/DT
proceeds/NNS
to/TO
buy/VB
additional/JJ
bonds/NNS
./.
The/DT
fallout/NN
for/IN
investors/NNS
lately/RB
has/VBZ
been/VBN
painful/JJ
./.
Consider/VB
the/DT
New/NNP
America/NNP
High/NNP
Income/NNP
Fund/NNP
./.
With/IN
a/DT
leveraged/JJ
position/NN
of/IN
about/IN
45/CD
%/NN
,/,
the/DT
fund/NN
's/POS
share/NN
price/NN
has/VBZ
plunged/VBN
28.5/CD
%/NN
so/RB
far/RB
this/DT
year/NN
./.
That/DT
's/VBZ
worse/JJR
than/IN
the/DT
price/NN
drop/NN
sustained/VBN
by/IN
the/DT
bonds/NNS
in/IN
its/PRP$
portfolio/NN
,/,
whose/WP$
total/JJ
return/NN
bond-price/JJ
changes/NNS
plus/CC
interest/NN
a/DT
negative/JJ
6.08/CD
%/NN
./.
Such/JJ
problems/NNS
may/MD
not/RB
be/VB
over/IN
./.
Leveraged/JJ
funds/NNS
in/IN
particular/JJ
``/``
are/VBP
still/RB
extremely/RB
vulnerable/JJ
,/,
because/IN
we/PRP
're/VBP
still/RB
at/IN
the/DT
beginning/NN
of/IN
problems/NNS
in/IN
the/DT
junk/NN
market/NN
,/,
''/''
says/VBZ
George/NNP
Foot/NNP
,/,
a/DT
managing/VBG
partner/NN
at/IN
Newgate/NNP
Management/NNP
Associates/NNPS
in/IN
Northampton/NNP
,/,
Mass/NNP
./.
Many/JJ
investors/NNS
are/VBP
unaware/JJ
their/PRP$
funds/NNS
have/VBP
borrowed/VBN
to/TO
speculate/VB
in/IN
such/PDT
a/DT
risky/JJ
market/NN
./.
``/``
If/IN
someone/NN
actually/RB
sat/VBD
down/IN
and/CC
thought/VBD
about/IN
what/WP
they/PRP
were/VBD
being/VBG
sold/VBN
,/,
''/''
says/VBZ
Gerald/NNP
Perritt/NNP
,/,
editor/NN
of/IN
the/DT
Mutual/NNP
Fund/NNP
Letter/NNP
in/IN
Chicago/NNP
,/,
they/PRP
might/MD
shy/VB
away/RB
./.
In/IN
a/DT
typical/JJ
leverage/NN
strategy/NN
,/,
a/DT
fund/NN
tries/VBZ
to/TO
capture/VB
the/DT
spread/NN
between/IN
what/WP
it/PRP
costs/VBZ
to/TO
borrow/VB
and/CC
the/DT
higher/JJR
return/NN
on/IN
the/DT
bonds/NNS
it/PRP
buys/VBZ
with/IN
the/DT
borrowed/VBN
money/NN
./.
If/IN
the/DT
market/NN
surges/VBZ
,/,
holders/NNS
can/MD
make/VB
that/IN
much/RB
more/JJR
profit/NN
;/:
the/DT
leverage/NN
effectively/RB
acts/VBZ
as/IN
an/DT
interest-free/JJ
margin/NN
account/NN
for/IN
investors/NNS
./.
But/CC
when/WRB
the/DT
market/NN
moves/VBZ
against/IN
the/DT
fund/NN
,/,
investors/NNS
lose/VBP
more/JJR
than/IN
other/JJ
junk/NN
holders/NNS
because/IN
the/DT
market/NN
decline/NN
is/VBZ
magnified/VBN
by/IN
the/DT
amount/NN
the/DT
fund/NN
is/VBZ
leveraged/JJ
./.
Fund/NN
managers/NNS
,/,
for/IN
their/PRP$
part/NN
,/,
defend/VBP
their/PRP$
use/NN
of/IN
leverage/NN
./.
Carl/NNP
Ericson/NNP
,/,
who/WP
runs/VBZ
the/DT
Colonial/NNP
Intermediate/NNP
High/NNP
Income/NNP
Fund/NNP
,/,
says/VBZ
the/DT
fund/NN
's/POS
25/CD
%/NN
leverage/NN
has/VBZ
jacked/VBN
up/IN
its/PRP$
interest/NN
income/NN
./.
``/``
As/RB
long/RB
as/IN
I/PRP
am/VBP
borrowing/VBG
at/IN
9.9/CD
%/NN
and/CC
each/DT
bond/NN
that/DT
,/,
it/PRP
enhances/VBZ
the/DT
yield/NN
,/,
''/''
he/PRP
maintains/VBZ
./.
Mr./NNP
Ericson/NNP
says/VBZ
he/PRP
tries/VBZ
to/TO
offset/VB
the/DT
leverage/NN
by/IN
diversifying/VBG
the/DT
fund/NN
's/POS
portfolio/NN
./.
Yet/CC
some/DT
funds/NNS
have/VBP
pulled/VBN
in/IN
their/PRP$
horns/NNS
./.
New/NNP
America/NNP
High/NNP
Income/NNP
Fund/NNP
recently/RB
said/VBD
that/IN
it/PRP
plans/VBZ
to/TO
reduce/VB
its/PRP$
leverage/NN
position/NN
by/IN
buying/VBG
back/RB
$/$
5/CD
million/CD
in/IN
preferred/VBN
stock/NN
and/CC
notes/NNS
from/IN
investors/NNS
./.
The/DT
fund/NN
made/VBD
a/DT
similar/JJ
move/NN
earlier/RBR
this/DT
year/NN
./.
``/``
We/PRP
are/VBP
trying/VBG
to/TO
increase/VB
our/PRP$
flexibility/NN
,/,
''/''
says/VBZ
Ellen/NNP
E./NNP
Terry/NNP
,/,
a/DT
vice/NN
president/NN
at/IN
Ostrander/NNP
Capital/NNP
Management/NNP
,/,
the/DT
fund/NN
's/POS
investment/NN
adviser/NN
./.
She/PRP
declined/VBD
to/TO
elaborate/VB
and/CC
would/MD
n't/RB
disclose/VB
the/DT
fund/NN
's/POS
recent/JJ
purchases/NNS
,/,
sales/NNS
or/CC
cash/NN
position/NN
./.
Ms./NNP
Terry/NNP
did/VBD
say/VB
the/DT
fund/NN
's/POS
recent/JJ
performance/NN
``/``
illustrates/VBZ
what/WP
happens/VBZ
in/IN
a/DT
leveraged/JJ
product/NN
''/''
when/WRB
the/DT
market/NN
does/VBZ
n't/RB
cooperate/VB
./.
``/``
When/WRB
the/DT
market/NN
turns/VBZ
around/IN
,/,
''/''
she/PRP
says/VBZ
,/,
``/``
it/PRP
will/MD
give/VB
a/DT
nice/JJ
picture/NN
''/''
of/IN
how/WRB
leverage/NN
can/MD
help/VB
performance/NN
./.
Several/JJ
leveraged/NN
funds/NNS
do/VBP
n't/RB
want/VB
to/TO
cut/VB
the/DT
amount/NN
they/PRP
borrow/VBP
because/IN
it/PRP
would/MD
slash/VB
the/DT
income/NN
they/PRP
pay/VBP
shareholders/NNS
,/,
fund/NN
officials/NNS
said/VBD
./.
But/CC
a/DT
few/JJ
funds/NNS
have/VBP
taken/VBN
other/JJ
defensive/JJ
steps/NNS
./.
Some/DT
have/VBP
raised/VBN
their/PRP$
cash/NN
positions/NNS
to/TO
record/NN
levels/NNS
./.
High/JJ
cash/NN
positions/NNS
help/VBP
buffer/VB
a/DT
fund/NN
when/WRB
the/DT
market/NN
falls/VBZ
./.
Prospect/NNP
Street/NNP
High/NNP
Income/NNP
Portfolio/NNP
,/,
for/IN
instance/NN
,/,
now/RB
holds/VBZ
about/IN
15/CD
%/NN
in/IN
cash/NN
and/CC
equivalents/NNS
,/,
nearly/RB
quintuple/RB
the/DT
amount/NN
it/PRP
held/VBD
earlier/RBR
this/DT
year/NN
,/,
says/VBZ
John/NNP
Frabotta/NNP
,/,
portfolio/NN
co-manager/NN
./.
He/PRP
says/VBZ
the/DT
fund/NN
,/,
which/WDT
is/VBZ
40/CD
%/NN
leveraged/NN
,/,
has/VBZ
maintained/VBN
a/DT
``/``
substantial/JJ
cushion/NN
''/''
between/IN
its/PRP$
borrowing/VBG
costs/NNS
and/CC
the/DT
yields/NNS
of/IN
the/DT
portfolio/NN
's/POS
bonds/NNS
./.
``/``
I/PRP
do/VBP
n't/RB
want/VB
to/TO
be/VB
in/IN
a/DT
position/NN
to/TO
have/VB
to/TO
sell/VB
,/,
''/''
Mr./NNP
Frabotta/NNP
says/VBZ
./.
Other/JJ
funds/NNS
have/VBP
recently/RB
sold/VBN
weak/JJ
junk/NN
bonds/NNS
to/TO
raise/VB
cash/NN
./.
At/IN
the/DT
50%-leveraged/JJ
Zenith/NNP
Income/NNP
Fund/NNP
,/,
portfolio/NN
manager/NN
John/NNP
Bianchi/NNP
recently/RB
dumped/VBD
Mesa/NNP
Petroleum/NNP
,/,
Wickes/NNP
and/CC
Horsehead/NNP
Industries/NNPS
,/,
among/IN
others/NNS
,/,
to/TO
raise/VB
his/PRP$
cash/NN
position/NN
to/TO
a/DT
record/NN
15/CD
%/NN
./.
``/``
That/DT
's/VBZ
a/DT
problem/NN
because/IN
cash/NN
is/VBZ
n't/RB
earning/VBG
us/PRP
very/RB
much/JJ
money/NN
,/,
''/''
Mr./NNP
Bianchi/NNP
says/VBZ
./.
He/PRP
concedes/VBZ
:/:
``/``
This/DT
is/VBZ
the/DT
most/RBS
difficult/JJ
market/NN
that/IN
I/PRP
've/VBP
been/VBN
involved/VBN
in/IN
./.
''/''
Because/IN
of/IN
the/DT
recent/JJ
junk-market/NN
turmoil/NN
,/,
the/DT
fund/NN
is/VBZ
considering/VBG
investing/VBG
in/IN
other/JJ
issues/NNS
instead/RB
,/,
including/VBG
mortgage-backed/JJ
bonds/NNS
./.
``/``
We/PRP
're/VBP
looking/VBG
at/IN
the/DT
leverage/NN
factor/NN
every/DT
day/NN
,/,
''/''
says/VBZ
Robert/NNP
Moore/NNP
,/,
president/NN
of/IN
Bernstein-Macaulay/NNP
Inc./NNP
,/,
a/DT
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
unit/NN
and/CC
the/DT
fund/NN
's/POS
adviser/NN
./.
``/``
At/IN
some/DT
point/NN
,/,
if/IN
we/PRP
are/VBP
unable/JJ
to/TO
cover/VB
our/PRP$
leveraged/JJ
cost/NN
--/:
and/CC
at/IN
the/DT
moment/NN
we/PRP
're/VBP
right/JJ
on/IN
it/PRP
--/:
we/PRP
're/VBP
going/VBG
to/TO
have/VB
to/TO
make/VB
a/DT
move/NN
./.
''/''
One/CD
of/IN
the/DT
more/RBR
bizarre/JJ
garden/NN
stories/NNS
since/IN
Eden/NNP
has/VBZ
been/VBN
unfolding/VBG
for/IN
four/CD
years/NNS
now/RB
,/,
in/IN
the/DT
private/JJ
paper-and-crayon/JJ
fantasies/NNS
of/IN
artist/NN
Jennifer/NNP
Bartlett/NNP
./.
And/CC
if/IN
she/PRP
and/CC
the/DT
Battery/NNP
Park/NNP
City/NNP
Authority/NNP
have/VBP
their/PRP$
way/NN
,/,
her/PRP
horticulturally/RB
inept/JJ
plan/NN
will/MD
soon/RB
go/VB
public/JJ
as/IN
a/DT
real/JJ
garden/NN
``/``
artwork/NN
''/''
in/IN
the/DT
downtown/NN
complex/NN
./.
South/NNP
Gardens/NNPS
,/,
as/IN
the/DT
Bartlett/NNP
scheme/NN
is/VBZ
called/VBN
,/,
will/MD
occupy/VB
the/DT
last/JJ
3.5/CD
acres/NNS
of/IN
open/JJ
space/NN
at/IN
the/DT
southwest/JJS
tip/NN
of/IN
Manhattan/NNP
./.
It/PRP
could/MD
cost/VB
taxpayers/NNS
$/$
15/CD
million/CD
to/TO
install/VB
and/CC
BPC/NNP
residents/NNS
$/$
1/CD
million/CD
a/DT
year/NN
to/TO
maintain/VB
./.
Created/VBN
by/IN
an/DT
artist/NN
who/WP
flaunts/VBZ
her/PRP$
ignorance/NN
of/IN
plants/NNS
and/CC
gardens/NNS
,/,
South/NNP
Gardens/NNPS
,/,
as/RB
now/RB
planned/VBN
,/,
will/MD
die/VB
from/IN
congestive/JJ
garden/NN
design/NN
./.
Ms./NNP
Bartlett/NNP
's/POS
previous/JJ
work/NN
,/,
which/WDT
earned/VBD
her/PRP
an/DT
international/JJ
reputation/NN
in/IN
the/DT
non-horticultural/JJ
art/NN
world/NN
,/,
often/RB
took/VBD
gardens/NNS
as/IN
its/PRP$
nominal/NN
subject/NN
./.
Mayhap/RB
this/DT
metaphorical/JJ
connection/NN
made/VBD
the/DT
BPC/NNP
Fine/NNP
Arts/NNPS
Committee/NNP
think/VB
she/PRP
had/VBD
a/DT
literal/JJ
green/JJ
thumb/NN
./.
Ms./NNP
Bartlett/NNP
would/MD
not/RB
discuss/VB
her/PRP$
garden/NN
for/IN
this/DT
article/NN
./.
Last/JJ
year/NN
she/PRP
boasted/VBD
to/TO
HG/NNP
magazine/NN
:/:
``/``
I/PRP
'd/VBD
never/RB
looked/VBN
at/IN
a/DT
garden/NN
in/IN
my/PRP$
life/NN
./.
''/''
And/CC
she/PRP
proved/VBD
no/DT
shirking/VBG
violet/NN
in/IN
her/PRP$
initial/JJ
statement/NN
to/TO
the/DT
BPCA/NNP
,/,
a/DT
New/NNP
York/NNP
State/NNP
public/JJ
benefit/NN
corporation/NN
:/:
``/``
The/DT
only/JJ
thing/NN
I/PRP
was/VBD
interested/VBN
in/IN
doing/VBG
was/VBD
a/DT
very/RB
complicated/VBN
garden/NN
,/,
which/WDT
would/MD
cost/VB
an/DT
enormous/JJ
amount/NN
of/IN
money/NN
and/CC
be/VB
very/RB
expensive/JJ
to/TO
maintain/VB
./.
''/''
Undeterred/JJ
,/,
the/DT
BPCA/NNP
hired/VBD
Ms./NNP
Bartlett/NNP
and/CC
another/DT
confessed/VBN
garden/NN
ignoramus/NN
,/,
the/DT
architect/NN
Alexander/NNP
Cooper/NNP
,/,
who/WP
claimed/VBD
he/PRP
had/VBD
never/RB
visited/VBN
,/,
much/RB
less/RBR
built/VBN
,/,
a/DT
garden/NN
,/,
and/CC
said/VBD
of/IN
the/DT
project/NN
,/,
``/``
I/PRP
do/VBP
n't/RB
view/VB
this/DT
as/IN
a/DT
landscape/NN
./.
I/PRP
view/VBP
this/DT
as/IN
a/DT
building/NN
./.
''/''
The/DT
third/JJ
principal/NN
in/IN
the/DT
South/NNP
Gardens/NNPS
adventure/NN
did/VBD
have/VB
garden/NN
experience/NN
./.
The/DT
firm/NN
of/IN
Bruce/NNP
Kelly\/David/NNP
Varnell/NNP
Landscape/NNP
Architects/NNPS
had/VBD
created/VBN
Central/NNP
Park/NNP
's/POS
Strawberry/NNP
Fields/NNPS
and/CC
Shakespeare/NNP
Garden/NNP
./.
The/DT
BPCA/NNP
called/VBD
its/PRP$
team/NN
a/DT
``/``
stunning/JJ
''/''
collaboration/NN
./.
After/IN
four/CD
years/NNS
,/,
though/RB
,/,
the/DT
South/NNP
Gardens/NNPS
design/NN
is/VBZ
100/CD
%/NN
uncollaborated/JJ
Jennifer/NNP
Bartlett/NNP
./.
She/PRP
has/VBZ
done/VBN
little/RB
more/RBR
than/IN
recycle/VB
her/PRP$
standard/JJ
motifs/NNS
--/:
trees/NNS
,/,
water/NN
,/,
landscape/NN
fragments/NNS
,/,
rudimentary/JJ
square/NN
houses/NNS
,/,
circles/NNS
,/,
triangles/NNS
,/,
rectangles/NNS
--/:
and/CC
fit/VB
them/PRP
into/IN
a/DT
grid/NN
,/,
as/IN
if/IN
she/PRP
were/VBD
making/VBG
one/CD
of/IN
her/PRP
gridded/JJ
two-dimensional/JJ
works/NNS
for/IN
a/DT
gallery/NN
wall/NN
./.
But/CC
for/IN
South/NNP
Gardens/NNPS
,/,
the/DT
grid/NN
was/VBD
to/TO
be/VB
a/DT
3-D/JJ
network/NN
of/IN
masonry/NN
or/CC
hedge/NN
walls/NNS
with/IN
real/JJ
plants/NNS
inside/IN
them/PRP
./.
In/IN
a/DT
letter/NN
to/TO
the/DT
BPCA/NNP
,/,
kelly\/varnell/NNP
called/VBD
this/DT
``/``
arbitrary/JJ
and/CC
amateurish/JJ
./.
''/''
The/DT
landscape/NN
architects/NNS
were/VBD
expelled/VBN
from/IN
the/DT
garden/NN
in/IN
July/NNP
./.
All/PDT
the/DT
while/NN
,/,
Ms./NNP
Bartlett/NNP
had/VBD
been/VBN
busy/JJ
at/IN
her/PRP
assignment/NN
,/,
serene/JJ
in/IN
her/PRP$
sense/NN
of/IN
self-tilth/NN
./.
As/IN
she/PRP
put/VBD
it/PRP
in/IN
a/DT
1987/CD
lecture/NN
at/IN
the/DT
Harvard/NNP
Graduate/NNP
School/NNP
of/IN
Design/NNP
:/:
``/``
I/PRP
have/VBP
designed/VBN
a/DT
garden/NN
,/,
not/RB
knowing/VBG
the/DT
difference/NN
between/IN
a/DT
rhododendron/NN
and/CC
a/DT
tulip/NN
./.
''/''
Moreover/RB
,/,
she/PRP
proclaimed/VBD
that/IN
``/``
landscape/NN
architects/NNS
have/VBP
been/VBN
going/VBG
wrong/JJ
for/IN
the/DT
last/JJ
20/CD
years/NNS
''/''
in/IN
the/DT
design/NN
of/IN
open/JJ
space/NN
./.
And/CC
she/PRP
further/RB
stunned/VBD
her/PRP$
listeners/NNS
by/IN
revealing/VBG
her/PRP$
secret/JJ
garden/NN
design/NN
method/NN
:/:
Commissioning/VBG
a/DT
friend/NN
to/TO
spend/VB
``/``
five/CD
or/CC
six/CD
thousand/CD
dollars/NNS
.../:
on/IN
books/NNS
that/IN
I/PRP
ultimately/RB
cut/VBD
up/IN
./.
''/''
After/IN
that/DT
,/,
the/DT
layout/NN
had/VBD
been/VBN
easy/JJ
./.
``/``
I/PRP
've/VBP
always/RB
relied/VBN
heavily/RB
on/IN
the/DT
grid/NN
and/CC
found/VBN
it/PRP
never/RB
to/TO
fail/VB
./.
''/''
Ms./NNP
Bartlett/NNP
told/VBD
her/PRP$
audience/NN
that/IN
she/PRP
absolutely/RB
did/VBD
not/RB
believe/VB
in/IN
compromise/NN
or/CC
in/IN
giving/VBG
in/IN
to/TO
the/DT
client/NN
``/``
because/IN
I/PRP
do/VBP
n't/RB
think/VB
you/PRP
can/MD
do/VB
watered-down/JJ
versions/NNS
of/IN
things/NNS
./.
''/''
(/(
This/DT
was/VBD
never/RB
a/DT
problem/NN
with/IN
South/NNP
Gardens/NNPS
,/,
because/IN
the/DT
client/NN
had/VBD
long/JJ
since/IN
given/VBN
in/IN
to/TO
Ms./NNP
Bartlett/NNP
's/POS
every/DT
whim/NN
./.
Last/JJ
year/NN
the/DT
public/NN
was/VBD
afforded/VBN
a/DT
preview/NN
of/IN
Ms./NNP
Bartlett/NNP
's/POS
creation/NN
in/IN
a/DT
tablemodel/NN
version/NN
,/,
at/IN
a/DT
BPC/NNP
exhibition/NN
./.
The/DT
labels/NNS
were/VBD
breathy/JJ
:/:
``/``
Within/IN
its/PRP$
sheltering/VBG
walls/NNS
is/VBZ
a/DT
microcosm/NN
of/IN
a/DT
thousand/CD
years/NNS
in/IN
garden/NN
design/NN
.../:
a/DT
rose/NN
garden/NN
,/,
herb/NN
garden/NN
,/,
serpentine/JJ
garden/NN
,/,
flower/NN
fields/NNS
,/,
an/DT
apple/NN
orchard/NN
.../:
organized/VBN
in/IN
a/DT
patchwork/NN
of/IN
50-by-50-foot/JJ
squares/NNS
to/TO
form/VB
`/``
rooms/NNS
'/''
.../:
here/RB
and/CC
there/RB
are/VBP
simple/JJ
architectural/JJ
forms/NNS
,/,
a/DT
whimsical/JJ
jet/NN
of/IN
water/NN
,/,
a/DT
conceit/NN
of/IN
topiary/JJ
or/CC
tartan/NN
plaid/NN
,/,
and/CC
chairs/NNS
of/IN
every/DT
sort/NN
to/TO
drag/VB
around/IN
.../:
./.
At/IN
the/DT
core/NN
of/IN
it/PRP
all/DT
is/VBZ
a/DT
love/NN
for/IN
plants/NNS
./.
''/''
Plant/NN
lovers/NNS
who/WP
studied/VBD
the/DT
maquette/NN
were/VBD
alarmed/VBN
./.
They/PRP
looked/VBD
at/IN
the/DT
miniature/NN
and/CC
saw/VBD
a/DT
giant/JJ
folly/NN
./.
Ms./NNP
Bartlett/NNP
's/POS
little/JJ
rooms/NNS
left/VBD
little/JJ
room/NN
for/IN
plants/NNS
or/CC
people/NNS
./.
Kelly\/Varnell/NNP
had/VBD
put/VBN
South/NNP
Gardens/NNPS
'/POS
carrying/NN
capacity/NN
at/IN
four/CD
people/NNS
per/IN
room/NN
,/,
or/CC
about/IN
100/CD
humans/NNS
overall/JJ
./.
This/DT
mincemeat/NN
of/IN
tiny/JJ
gridlocked/JJ
squares/NNS
was/VBD
inspired/VBN
by/IN
the/DT
artist/NN
's/POS
own/JJ
digs/NNS
:/:
``/``
My/PRP$
loft/NN
was/VBD
50/CD
by/IN
100/CD
feet/NNS
,/,
so/RB
50/CD
feet/NNS
by/IN
50/CD
feet/NNS
seemed/VBD
like/IN
a/DT
good/JJ
garden/NN
room/NN
./.
''/''
Inside/IN
the/DT
grid/NN
were/VBD
24/CD
of/IN
these/DT
plant/NN
cells/NNS
jammed/VBN
full/RB
of/IN
clutter/NN
./.
One/CD
she/PRP
made/VBD
into/IN
a/DT
topiary/JJ
rec/NN
room/NN
,/,
replete/JJ
with/IN
plants/NNS
shaped/VBN
into/IN
a/DT
Barcalounger/NNP
,/,
TV/NN
,/,
piano/NN
and/CC
chairs/NNS
./.
In/IN
another/DT
,/,
she/PRP
requisitioned/VBD
topiary/JJ
MX/NNP
missile/NN
cones/NNS
--/:
costing/VBG
$/$
10,000/CD
each/DT
--/:
in/IN
heights/NNS
up/IN
to/TO
20/CD
feet/NNS
./.
Another/DT
she/PRP
stuffed/VBD
with/IN
eight/CD
``/``
rectilinear/JJ
hedges/NNS
''/''
for/IN
a/DT
topiary/JJ
geometry/NN
lesson/NN
in/IN
the/DT
right-angling/NN
of/IN
plants/NNS
./.
In/IN
the/DT
herbal/JJ
lounge/NN
she/PRP
specified/VBD
a/DT
``/``
plaid/JJ
knot/NN
garden/NN
''/''
decor/NN
./.
She/PRP
ordered/VBD
the/DT
foyer/NN
done/VBN
in/IN
a/DT
different/JJ
plaid/NN
planting/NN
,/,
and/CC
made/VBD
the/DT
landscape/NN
architects/NNS
study/VB
a/DT
book/NN
on/IN
tartans/NNS
./.
In/IN
one/CD
garden/NN
roomette/NN
she/PRP
implanted/VBD
a/DT
43-foot/JJ
square/NN
glass/NN
cube/NN
meant/VBD
to/TO
show/VB
off/IN
a/DT
plaid/JJ
tile/NN
floor/NN
conceit/NN
,/,
a/DT
``/``
zinc/NN
sink/NN
,/,
''/''
a/DT
``/``
huge/JJ
fishbowl/NN
with/IN
carp/NN
''/''
and/CC
a/DT
``/``
birdcage/NN
with/IN
cockatoos/NNS
./.
''/''
Next/JJ
door/NN
she/PRP
put/VBD
a/DT
smaller/JJR
plaid-floored/JJ
glass/NN
house/NN
,/,
where/WRB
,/,
she/PRP
suggested/VBD
,/,
a/DT
flat/NN
of/IN
strawberries/NNS
might/MD
be/VB
displayed/VBN
in/IN
the/DT
dead/NN
of/IN
winter/NN
./.
In/IN
another/DT
compartment/NN
called/VBN
the/DT
Linden/NNP
Bosque/NNP
,/,
62/CD
linden/NN
trees/NNS
were/VBD
to/TO
be/VB
crowded/VBN
together/RB
at/IN
killing/VBG
intervals/NNS
of/IN
10/CD
or/CC
16/CD
feet/NNS
./.
Lindens/NNPS
need/VBP
about/IN
36/CD
feet/NNS
./.
One/CD
thing/NN
about/IN
the/DT
Bartlett/NNP
plan/NN
was/VBD
never/RB
in/IN
doubt/NN
:/:
It/PRP
would/MD
demand/VB
the/DT
full-time/JJ
skills/NNS
of/IN
a/DT
battalion/NN
of/IN
topiary/JJ
barbers/NNS
,/,
rosarians/NNS
,/,
orchardists/NNS
and/CC
arborists/NNS
./.
Ms./NNP
Bartlett/NNP
blithely/RB
suggested/VBD
calling/VBG
upon/IN
``/``
semi-skilled/JJ
garden/NN
club/NN
workers/NNS
for/IN
maintenance/NN
./.
''/''
Furthermore/RB
,/,
she/PRP
had/VBD
insisted/VBN
on/IN
paths/NNS
so/RB
narrow/JJ
(/(
five/CD
to/TO
eight/CD
feet/NNS
hedge/JJ
corners/NNS
so/RB
square/RB
that/IN
standard/JJ
maintenance/NN
equipment/NN
--/:
trucks/NNS
or/CC
cherry/JJ
pickers/NNS
--/:
could/MD
n't/RB
maneuver/VB
./.
Then/RB
,/,
to/TO
make/VB
these/DT
gardenettes/NNS
quite/RB
literally/RB
rooms/NNS
,/,
Ms./NNP
Bartlett/NNP
had/VBD
thrown/VBN
up/IN
windowless/JJ
walls/NNS
brick/NN
,/,
lattice/NN
,/,
hedge/NN
eight/CD
to/TO
10/CD
feet/NNS
tall/JJ
,/,
casting/VBG
her/PRP$
interiors/NNS
into/IN
day-long/JJ
Stygian/JJ
shade/NN
./.
It/PRP
was/VBD
hard/JJ
to/TO
see/VB
how/WRB
photosynthesis/NN
would/MD
ever/RB
happen/VB
in/IN
South/NNP
Gardens/NNPS
without/IN
decking/VBG
the/DT
walls/NNS
in/IN
a/DT
Christmas-like/JJ
array/NN
of/IN
Gro-Lites/NNPS
./.
Finally/RB
,/,
flouting/VBG
the/DT
BPCA/NNP
's/POS
wishes/NNS
to/TO
continue/VB
the/DT
popular/JJ
two-mile/JJ
riverside/NN
Esplanade/NNP
,/,
prized/VBN
for/IN
its/PRP$
expansive/JJ
views/NNS
of/IN
New/NNP
York/NNP
Harbor/NNP
,/,
the/DT
Statue/NNP
of/IN
Liberty/NNP
and/CC
Ellis/NNP
Island/NNP
,/,
Ms./NNP
Bartlett/NNP
threw/VBD
up/IN
yet/RB
another/DT
wall/NN
,/,
this/DT
time/NN
concrete/NN
,/,
this/DT
time/NN
10/CD
1\/2/CD
feet/NNS
tall/JJ
./.
She/PRP
ran/VBD
it/PRP
the/DT
length/NN
of/IN
the/DT
South/NNP
Gardens/NNPS
riverfront/NN
,/,
blotting/VBG
out/IN
the/DT
city/NN
's/POS
great/JJ
natural/JJ
water/NN
features/NNS
,/,
the/DT
harbor/NN
and/CC
the/DT
river/NN
./.
her/PRP
garden/NN
,/,
she/PRP
has/VBZ
decreed/VBN
a/DT
waterfall/NN
,/,
a/DT
rill/NN
,/,
ponds/NNS
and/CC
other/JJ
costly/JJ
,/,
trivial/JJ
waterworks/NN
beside/IN
the/DT
Hudson/NNP
./.
While/IN
the/DT
model/NN
was/VBD
still/RB
on/IN
view/NN
,/,
Manhattan/NNP
Community/NNP
Board/NNP
1/CD
passed/VBD
a/DT
resolution/NN
against/IN
South/NNP
Gardens/NNPS
./.
The/DT
Parks/NNPS
Council/NNP
wrote/VBD
the/DT
BPCA/NNP
that/IN
this/DT
``/``
too/RB
`/``
private/JJ
'/''
.../:
exclusive/JJ
,/,
''/''
complex/JJ
and/CC
expensive/JJ
``/``
enclosed/VBN
garden/NN
.../:
belongs/VBZ
in/IN
almost/RB
any/DT
location/NN
but/CC
the/DT
waterfront/NN
./.
''/''
Lynden/NNP
B./NNP
Miller/NNP
,/,
the/DT
noted/VBN
public/JJ
garden/NN
designer/NN
who/WP
restored/VBD
Central/NNP
Park/NNP
's/POS
Conservatory/NNP
Garden/NNP
,/,
recalls/VBZ
her/PRP$
reaction/NN
to/TO
the/DT
South/NNP
Gardens/NNPS
model/NN
in/IN
light/NN
of/IN
the/DT
public/JJ
garden/NN
she/PRP
was/VBD
designing/VBG
for/IN
42nd/NNP
Street/NNP
's/POS
Bryant/NNP
Park/NNP
:/:
``/``
Bryant/NNP
Park/NNP
,/,
as/IN
designed/VBN
in/IN
1933/CD
,/,
failed/VBD
as/IN
a/DT
public/JJ
space/NN
,/,
because/IN
it/PRP
made/VBD
people/NNS
feel/VB
trapped/VBN
./.
By/IN
removing/VBG
the/DT
hedges/NNS
and/CC
some/DT
walls/NNS
,/,
the/DT
Bryant/NNP
Park/NNP
Restoration/NNP
is/VBZ
opening/VBG
it/PRP
up/IN
./.
It/PRP
seems/VBZ
to/TO
me/PRP
the/DT
BPCA/NNP
plan/NN
has/VBZ
the/DT
potential/NN
of/IN
making/VBG
South/NNP
Gardens/NNPS
a/DT
horticultural/JJ
jail/NN
for/IN
people/NNS
and/CC
plants/NNS
./.
''/''
The/DT
three/CD
urban/JJ
horticulture/NN
experts/NNS
with/IN
Cornell/NNP
Cooperative/NNP
Extension/NNP
weighed/VBD
in/IN
with/IN
a/DT
letter/NN
to/TO
the/DT
BPCA/NNP
that/WDT
began/VBD
:/:
``/``
We/PRP
feel/VBP
that/IN
the/DT
garden/NN
is/VBZ
horticulturally/RB
doomed/VBN
./.
''/''
They/PRP
then/RB
addressed/VBD
the/DT
decidedly/RB
``/``
questionable/JJ
safety/NN
of/IN
.../:
a/DT
complex/JJ
garden/NN
of/IN
endless/JJ
hiding/NN
places/NNS
./.
The/DT
8/CD
ft./NN
hedges/NNS
which/WDT
obstruct/VBP
views/NNS
in/IN
and/CC
out/IN
of/IN
small/JJ
`/``
rooms/NNS
'/''
insure/VBP
.../:
that/IN
this/DT
garden/NN
will/MD
be/VB
a/DT
potential/JJ
breeding/NN
ground/NN
for/IN
crime/NN
./.
''/''
(/(
At/IN
Harvard/NNP
,/,
Ms./NNP
Bartlett/NNP
had/VBD
declared/VBN
:/:
``/``
There/EX
are/VBP
going/VBG
to/TO
be/VB
problems/NNS
with/IN
safety/NN
.../:
I/PRP
'm/VBP
not/RB
going/VBG
to/TO
address/VB
questions/NNS
of/IN
safety/NN
!/.
''/''
)/)
Despite/IN
the/DT
dire/JJ
assessments/NNS
of/IN
knowledgeable/JJ
garden/NN
professionals/NNS
,/,
Ms./NNP
Bartlett/NNP
's/POS
South/NNP
Gardens/NNPS
design/NN
somehow/RB
continues/VBZ
on/IN
,/,
seemingly/RB
impervious/JJ
to/TO
reason/NN
,/,
stalled/VBN
only/RB
by/IN
bureaucratic/JJ
lethargy/NN
and/CC
logistical/JJ
complications/NNS
./.
BPCA/NNP
President/NNP
and/CC
CEO/NNP
David/NNP
Emil/NNP
hopes/VBZ
to/TO
negotiate/VB
a/DT
seawall/NN
that/WDT
could/MD
``/``
be/VB
significantly/RB
more/RBR
visually/RB
permeable/JJ
./.
''/''
And/CC
by/IN
substituting/VBG
yet/RB
another/DT
landscape/NN
architect/NN
,/,
Nicholas/NNP
Quennell/NNP
,/,
he/PRP
insists/VBZ
he/PRP
can/MD
achieve/VB
that/DT
and/CC
other/JJ
accommodations/NNS
to/TO
gardening/NN
reality/NN
while/IN
still/RB
preserving/VBG
the/DT
``/``
artistic/JJ
vision/NN
''/''
of/IN
a/DT
``/``
truly/RB
great/JJ
artist/NN
./.
''/''
After/IN
four/CD
years/NNS
of/IN
no/DT
progress/NN
in/IN
this/DT
direction/NN
,/,
it/PRP
is/VBZ
doubtful/JJ
any/DT
viable/JJ
collaboration/NN
with/IN
Ms./NNP
Bartlett/NNP
will/MD
suddenly/RB
now/RB
be/VB
possible/JJ
./.
Mr./NNP
Quennell/NNP
has/VBZ
said/VBN
he/PRP
plans/VBZ
to/TO
go/VB
with/IN
the/DT
grid/NN
,/,
regardless/RB
./.
There/EX
is/VBZ
still/RB
time/NN
,/,
however/RB
,/,
for/IN
Gov./NNP
Mario/NNP
Cuomo/NNP
or/CC
Fabian/NNP
Palomino/NNP
,/,
chairman/NN
of/IN
the/DT
BPCA/NNP
board/NN
,/,
to/TO
prevent/VB
this/DT
topiary/JJ
``/``
Tilted/NNP
Arc/NNP
./.
''/''
These/DT
statesmen/NNS
might/MD
take/VB
counsel/NN
from/IN
William/NNP
Robinson/NNP
,/,
author/NN
of/IN
``/``
The/NNP
English/NNP
Flower/NNP
Garden/NNP
''/''
--/:
the/DT
gardener/NN
's/POS
bible/NN
since/IN
1883/CD
--/:
who/WP
seems/VBZ
to/TO
have/VB
had/VBN
a/DT
Jennifer/NNP
Bartlett/NNP
in/IN
mind/NN
when/WRB
he/PRP
wrote/VBD
:/:
``/``
Unhappily/RB
,/,
our/PRP$
gardeners/NNS
for/IN
ages/NNS
have/VBP
suffered/VBN
at/IN
the/DT
hands/NNS
of/IN
the/DT
decorative/JJ
artist/NN
when/WRB
applying/VBG
his/PRP$
`/``
designs/NNS
'/''
to/TO
the/DT
garden/NN
.../:
./.
It/PRP
is/VBZ
this/DT
adapting/NN
of/IN
absurd/JJ
`/``
knots/NNS
'/POS
and/CC
patterns/NNS
from/IN
old/JJ
books/NNS
to/TO
any/DT
surface/NN
where/WRB
a/DT
flower/NN
garden/NN
has/VBZ
to/TO
be/VB
made/VBN
that/DT
leads/VBZ
to/TO
bad/JJ
and/CC
frivolous/JJ
design/NN
--/:
wrong/JJ
in/IN
plan/NN
and/CC
hopeless/JJ
for/IN
the/DT
life/NN
of/IN
plants/NNS
./.
''/''
I/PRP
read/VBP
the/DT
exerpts/NNS
of/IN
Wayne/NNP
Angell/NNP
's/POS
exchange/NN
with/IN
a/DT
Gosbank/NNP
representative/NN
``/``
Put/VB
the/DT
Soviet/NNP
Economy/NNP
on/IN
Golden/NNP
Rails/NNPS
,/,
''/''
editorial/NN
page/NN
,/,
Oct./NNP
5/CD
great/JJ
interest/NN
,/,
since/IN
the/DT
gold/JJ
standard/NN
is/VBZ
one/CD
of/IN
my/PRP$
areas/NNS
of/IN
research/NN
./.
Mr./NNP
Angell/NNP
is/VBZ
incorrect/JJ
when/WRB
he/PRP
states/VBZ
that/IN
the/DT
Soviet/NNP
Union/NNP
's/POS
large/JJ
gold/NN
reserves/NNS
would/MD
give/VB
it/PRP
``/``
great/JJ
power/NN
to/TO
establish/VB
credibility/NN
./.
''/''
During/IN
the/DT
latter/JJ
part/NN
of/IN
the/DT
19th/JJ
century/NN
,/,
Russia/NNP
was/VBD
on/IN
a/DT
gold/JJ
standard/NN
and/CC
had/VBD
gold/JJ
reserves/NNS
representing/VBG
more/RBR
than/IN
100/CD
%/NN
of/IN
its/PRP$
outstanding/JJ
currency/NN
,/,
but/CC
no/DT
one/CD
outside/NN
Russia/NNP
used/VBD
rubles/NNS
./.
The/DT
Bank/NNP
of/IN
England/NNP
,/,
on/IN
the/DT
other/JJ
hand/NN
,/,
had/VBD
gold/JJ
reserves/NNS
that/WDT
averaged/VBD
about/IN
30/CD
%/NN
of/IN
its/PRP$
outstanding/JJ
currency/NN
,/,
and/CC
Bank/NNP
of/IN
England/NNP
notes/NNS
were/VBD
accepted/VBN
throughout/IN
the/DT
world/NN
./.
The/DT
most/RBS
likely/JJ
reason/NN
for/IN
this/DT
disparity/NN
is/VBZ
that/IN
the/DT
Bank/NNP
of/IN
England/NNP
was/VBD
a/DT
private/JJ
bank/NN
with/IN
substantial/JJ
earning/VBG
assets/NNS
,/,
and/CC
the/DT
common-law/NN
rights/NNS
of/IN
creditors/NNS
to/TO
collect/VB
claims/NNS
against/IN
the/DT
bank/NN
were/VBD
well/RB
established/VBN
in/IN
Britain/NNP
./.
By/IN
contrast/NN
,/,
in/IN
19th-century/JJ
Russia/NNP
an/DT
authoritarian/JJ
government/NN
owned/VBD
the/DT
bank/NN
and/CC
had/VBD
the/DT
power/NN
to/TO
revoke/VB
payment/NN
whenever/WRB
it/PRP
chose/VBD
,/,
much/RB
as/IN
it/PRP
would/MD
in/IN
today/NN
's/POS
Soviet/NNP
Union/NNP
./.
The/DT
success/NN
of/IN
the/DT
British/NNP
gold/NN
standard/NN
was/VBD
due/JJ
to/TO
independent/JJ
private/JJ
banking/NN
and/CC
common/JJ
law/NN
,/,
rather/RB
than/IN
the/DT
choice/NN
of/IN
gold/NN
for/IN
valuing/VBG
the/DT
currency/NN
./.
It/PRP
is/VBZ
no/DT
coincidence/NN
that/IN
from/IN
1844/CD
to/TO
1914/CD
,/,
when/WRB
the/DT
Bank/NNP
of/IN
England/NNP
was/VBD
an/DT
independent/JJ
private/JJ
bank/NN
,/,
the/DT
pound/NN
was/VBD
never/RB
devalued/VBN
and/CC
payment/NN
of/IN
gold/NN
for/IN
pound/NN
notes/NNS
was/VBD
never/RB
suspended/VBN
,/,
but/CC
with/IN
the/DT
subsequent/JJ
nationalization/NN
of/IN
the/DT
Bank/NNP
of/IN
England/NNP
,/,
the/DT
pound/NN
was/VBD
devalued/VBN
with/IN
increasing/VBG
frequency/NN
and/CC
its/PRP$
use/NN
as/IN
an/DT
international/JJ
medium/NN
of/IN
exchange/NN
declined/VBD
./.
The/DT
Soviet/NNP
Union/NNP
should/MD
keep/VB
these/DT
lessons/NNS
in/IN
mind/NN
as/IN
it/PRP
seeks/VBZ
to/TO
establish/VB
the/DT
ruble/NN
as/IN
an/DT
international/JJ
currency/NN
./.
One/CD
way/NN
to/TO
make/VB
the/DT
ruble/NN
into/IN
a/DT
major/JJ
international/JJ
currency/NN
would/MD
be/VB
to/TO
leave/VB
reserves/NNS
of/IN
gold/NN
and/CC
earning/VBG
assets/NNS
in/IN
a/DT
Swiss/NNP
bank/NN
with/IN
distributions/NNS
based/VBN
on/IN
Swiss/NNP
laws/NNS
./.
Unless/IN
the/DT
laws/NNS
determining/VBG
the/DT
noteholder/NN
's/POS
rights/NNS
to/TO
payment/NN
are/VBP
independent/JJ
of/IN
the/DT
issuer/NN
of/IN
those/DT
notes/NNS
,/,
however/RB
,/,
a/DT
gold-based/JJ
ruble/NN
would/MD
be/VB
as/RB
unsuccessful/JJ
for/IN
the/DT
Soviets/NNPS
as/IN
it/PRP
was/VBD
for/IN
the/DT
czars/NNS
./.
Christopher/NNP
R./NNP
Petruzzi/NNP
Professor/NNP
of/IN
Taxation/NNP
California/NNP
State/NNP
University/NNP
Fullerton/NNP
,/,
Calif/NNP
./.
Wednesday/NNP
,/,
October/NNP
25/CD
,/,
1989/CD
The/DT
key/JJ
U.S./NNP
and/CC
foreign/JJ
annual/JJ
interest/NN
rates/NNS
below/IN
are/VBP
a/DT
guide/NN
to/TO
general/JJ
levels/NNS
but/CC
do/VBP
n't/RB
always/RB
represent/VB
actual/JJ
transactions/NNS
./.
PRIME/NNP
RATE/NNP
:/:
10/CD
1\/2/CD
%/NN
./.
The/DT
base/NN
rate/NN
on/IN
corporate/JJ
loans/NNS
at/IN
large/JJ
U.S./NNP
money/NN
center/NN
commercial/JJ
banks/NNS
./.
FEDERAL/NNP
FUNDS/NNPS
:/:
8/CD
3\/4/CD
%/NN
high/JJ
,/,
8/CD
11\/16/CD
%/NN
low/JJ
,/,
8/CD
3\/4/CD
%/NN
near/IN
closing/VBG
bid/NN
,/,
8/CD
13\/16/CD
%/NN
offered/VBD
./.
Reserves/NNS
traded/VBN
among/IN
commercial/JJ
banks/NNS
for/IN
overnight/JJ
use/NN
in/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
or/CC
more/JJR
./.
Source/NN
:/:
Fulton/NNP
Prebon/NNP
U.S.A/NNP
./.
Inc/NNP
./.
DISCOUNT/NNP
RATE/NNP
:/:
7/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
depository/NN
institutions/NNS
by/IN
the/DT
New/NNP
York/NNP
Federal/NNP
Reserve/NNP
Bank/NNP
./.
CALL/NNP
MONEY/NNP
:/:
9/CD
3\/4/CD
%/NN
to/TO
10/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
brokers/NNS
on/IN
stock/NN
exchange/NN
collateral/NN
./.
COMMERCIAL/NNP
PAPER/NNP
placed/VBD
directly/RB
by/IN
General/NNP
Motors/NNPS
Acceptance/NNP
Corp./NNP
:/:
8.45/CD
%/NN
30/CD
to/TO
44/CD
days/NNS
;/:
8.20/CD
%/NN
45/CD
to/TO
67/CD
days/NNS
;/:
8.325/CD
%/NN
68/CD
to/TO
89/CD
days/NNS
;/:
8/CD
%/NN
90/CD
to/TO
119/CD
days/NNS
;/:
7.875/CD
%/NN
120/CD
to/TO
149/CD
days/NNS
;/:
7.75/CD
%/NN
150/CD
to/TO
179/CD
days/NNS
;/:
7.50/CD
%/NN
180/CD
to/TO
270/CD
days/NNS
./.
COMMERCIAL/NNP
PAPER/NNP
:/:
High-grade/JJ
unsecured/JJ
notes/NNS
sold/VBN
through/IN
dealers/NNS
by/IN
major/JJ
corporations/NNS
in/IN
multiples/NNS
of/IN
$/$
1,000/CD
:/:
8.55/CD
%/NN
30/CD
days/NNS
;/:
8.45/CD
%/NN
60/CD
days/NNS
;/:
8.40/CD
%/NN
90/CD
days/NNS
./.
CERTIFICATES/NNPS
OF/IN
DEPOSIT/NNP
:/:
8.09/CD
%/NN
one/CD
month/NN
;/:
8.09/CD
%/NN
two/CD
months/NNS
;/:
8.06/CD
%/NN
three/CD
months/NNS
;/:
8/CD
%/NN
six/CD
months/NNS
;/:
7.94/CD
%/NN
one/CD
year/NN
./.
Average/JJ
of/IN
top/JJ
rates/NNS
paid/VBN
by/IN
major/JJ
New/NNP
York/NNP
banks/NNS
on/IN
primary/JJ
new/JJ
issues/NNS
of/IN
negotiable/JJ
C.D.s/NNS
,/,
usually/RB
on/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
and/CC
more/JJR
./.
The/DT
minimum/JJ
unit/NN
is/VBZ
$/$
100,000/CD
./.
Typical/JJ
rates/NNS
in/IN
the/DT
secondary/JJ
market/NN
:/:
8.53/CD
%/NN
one/CD
month/NN
;/:
8.45/CD
%/NN
three/CD
months/NNS
;/:
8.27/CD
%/NN
six/CD
months/NNS
./.
BANKERS/NNPS
ACCEPTANCES/NNPS
:/:
8.47/CD
%/NN
30/CD
days/NNS
;/:
8.30/CD
%/NN
60/CD
days/NNS
;/:
8.27/CD
%/NN
90/CD
days/NNS
;/:
8.08/CD
%/NN
120/CD
days/NNS
;/:
7.98/CD
%/NN
150/CD
days/NNS
;/:
7.90/CD
%/NN
180/CD
days/NNS
./.
Negotiable/JJ
,/,
bank-backed/JJ
business/NN
credit/NN
instruments/NNS
typically/RB
financing/VBG
an/DT
import/NN
order/NN
./.
LONDON/NNP
LATE/RB
EURODOLLARS/NNPS
:/:
8/CD
11\/16/CD
%/NN
to/TO
8/CD
9\/16/CD
%/NN
one/CD
month/NN
;/:
8/CD
9\/16/CD
%/NN
to/TO
8/CD
7\/16/CD
%/NN
two/CD
months/NNS
;/:
8/CD
5\/8/CD
%/NN
to/TO
8/CD
1\/2/CD
%/NN
three/CD
months/NNS
;/:
8/CD
1\/2/CD
%/NN
to/TO
8/CD
3\/8/CD
%/NN
four/CD
months/NNS
;/:
8/CD
7\/16/CD
%/NN
to/TO
8/CD
5\/16/CD
%/NN
five/CD
months/NNS
;/:
8/CD
7\/16/CD
%/NN
to/TO
8/CD
5\/16/CD
%/NN
six/CD
months/NNS
./.
LONDON/NNP
INTERBANK/NNP
OFFERED/NNP
RATES/NNPS
LIBOR/NNP
8/CD
11\/16/CD
%/NN
one/CD
month/NN
;/:
8/CD
5\/8/CD
%/NN
three/CD
months/NNS
;/:
8/CD
7\/16/CD
%/NN
six/CD
months/NNS
;/:
8/CD
3\/8/CD
%/NN
one/CD
year/NN
./.
The/DT
average/NN
of/IN
interbank/NN
offered/VBN
rates/NNS
for/IN
dollar/NN
deposits/NNS
in/IN
the/DT
London/NNP
market/NN
based/VBN
on/IN
quotations/NNS
at/IN
five/CD
major/JJ
banks/NNS
./.
FOREIGN/NNP
PRIME/NNP
RATES/NNPS
:/:
Canada/NNP
13.50/CD
%/NN
;/:
Germany/NNP
9/CD
%/NN
;/:
Japan/NNP
4.875/CD
%/NN
;/:
Switzerland/NNP
8.50/CD
%/NN
;/:
Britain/NNP
15/CD
%/NN
./.
These/DT
rate/NN
indications/NNS
are/VBP
n't/RB
directly/RB
comparable/JJ
;/:
lending/VBG
practices/NNS
vary/VBP
widely/RB
by/IN
location/NN
./.
TREASURY/NNP
BILLS/NNPS
:/:
Results/NNS
of/IN
the/DT
Monday/NNP
,/,
October/NNP
23/CD
,/,
1989/CD
,/,
auction/NN
of/IN
short-term/JJ
U.S./NNP
government/NN
bills/NNS
,/,
sold/VBN
at/IN
a/DT
discount/NN
from/IN
face/NN
value/NN
in/IN
units/NNS
of/IN
$/$
10,000/CD
to/TO
$/$
1/CD
million/CD
:/:
7.52/CD
%/NN
13/CD
weeks/NNS
;/:
7.50/CD
%/NN
26/CD
weeks/NNS
./.
FEDERAL/NNP
HOME/NNP
LOAN/NNP
MORTGAGE/NNP
CORP/NNP
./.
Freddie/NNP
Mac/NNP
yields/NNS
on/IN
30-year/JJ
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
./.
9.75/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
7.875/CD
%/NN
,/,
2/CD
%/NN
rate/NN
capped/VBD
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNPS
Inc/NNP
./.
FEDERAL/NNP
NATIONAL/NNP
MORTGAGE/NNP
ASSOCIATION/NNP
Fannie/NNP
Mae/NNP
yields/NNS
on/IN
30/CD
year/NN
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
par/NN
9.68/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
8.70/CD
%/NN
,/,
6\/2/CD
rate/NN
capped/VBD
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNPS
Inc/NNP
./.
MERRILL/NNP
LYNCH/NNP
READY/NNP
ASSETS/NNPS
TRUST/NNP
:/:
8.62/CD
%/NN
./.
Annualized/VBN
average/JJ
rate/NN
of/IN
return/NN
after/IN
expenses/NNS
for/IN
the/DT
past/JJ
30/CD
days/NNS
;/:
not/RB
a/DT
forecast/NN
of/IN
future/JJ
returns/NNS
./.
Securities/NNS
and/CC
Exchange/NNP
Commission/NNP
Chairman/NNP
Richard/NNP
Breeden/NNP
told/VBD
a/DT
congressional/JJ
subcommittee/NN
that/IN
he/PRP
would/MD
consider/VB
imposing/VBG
``/``
circuit/NN
breakers/NNS
''/''
to/TO
halt/VB
program/NN
trading/NN
at/IN
volatile/JJ
times/NNS
./.
Mr./NNP
Breeden/NNP
,/,
in/IN
his/PRP$
first/JJ
testimony/NN
to/TO
Congress/NNP
since/IN
taking/VBG
the/DT
SEC/NNP
post/NN
,/,
said/VBD
the/DT
agency/NN
is/VBZ
studying/VBG
the/DT
Friday/NNP
the/DT
13th/JJ
market/NN
plunge/NN
,/,
including/VBG
how/WRB
current/JJ
circuit/NN
breakers/NNS
affected/VBD
the/DT
market/NN
that/DT
day/NN
and/CC
the/DT
following/VBG
Monday/NNP
./.
After/IN
the/DT
study/NN
,/,
the/DT
SEC/NNP
would/MD
be/VB
willing/JJ
to/TO
consider/VB
adding/VBG
new/JJ
circuit/NN
breakers/NNS
or/CC
fine-tuning/VB
the/DT
current/JJ
ones/NNS
,/,
he/PRP
added/VBD
./.
Circuit/NN
breakers/NNS
,/,
designed/VBN
to/TO
give/VB
the/DT
markets/NNS
a/DT
breather/NN
in/IN
cases/NNS
of/IN
sharp/JJ
price/NN
movements/NNS
,/,
curb/NN
trading/NN
of/IN
futures/NNS
or/CC
stocks/NNS
at/IN
various/JJ
trigger/NN
points/NNS
./.
At/IN
certain/JJ
points/NNS
during/IN
the/DT
Friday/NNP
the/DT
13th/JJ
drop/NN
,/,
circuit/NN
breakers/NNS
kicked/VBD
in/IN
on/IN
the/DT
futures/NNS
market/NN
,/,
slowing/VBG
trading/NN
at/IN
times/NNS
./.
A/DT
circuit/NN
breaker/NN
that/WDT
would/MD
have/VB
closed/VBN
down/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
was/VBD
n't/RB
tripped/VBN
./.
Rep./NNP
Edward/NNP
Markey/NNP
D./NNP
,/,
Mass./NNP
chairman/NN
of/IN
the/DT
House/NNP
Telecommunications/NNPS
and/CC
Finance/NNP
Subcommittee/NNP
,/,
is/VBZ
pushing/VBG
the/DT
idea/NN
of/IN
a/DT
circuit/NN
breaker/NN
for/IN
computer-driven/JJ
program/NN
trading/NN
in/IN
hopes/NNS
that/WDT
would/MD
curb/VB
``/``
turmoil/NN
''/''
in/IN
the/DT
marketplace/NN
./.
He/PRP
argued/VBD
that/IN
program-trading/NN
by/IN
roughly/RB
15/CD
big/JJ
institutions/NNS
is/VBZ
pushing/VBG
around/IN
the/DT
markets/NNS
and/CC
scaring/VBG
individual/JJ
investors/NNS
./.
Mr./NNP
Breeden/NNP
did/VBD
n't/RB
reject/VB
the/DT
proposal/NN
./.
After/IN
the/DT
SEC/NNP
study/NN
of/IN
the/DT
drop/NN
is/VBZ
completed/VBN
,/,
he/PRP
said/VBD
,/,
``/``
I/PRP
'm/VBP
perfectly/RB
happy/JJ
to/TO
work/VB
with/IN
this/DT
committee/NN
.../:
in/IN
identifying/VBG
whether/IN
we/PRP
need/VBP
other/JJ
devices/NNS
,/,
''/''
such/JJ
as/IN
a/DT
program-trading/NN
curb/NN
./.
Mr./NNP
Breeden/NNP
backed/VBD
most/JJS
of/IN
the/DT
provisions/NNS
in/IN
a/DT
market-reform/JJ
bill/NN
that/IN
the/DT
SEC/NNP
brought/VBD
to/TO
the/DT
subcommittee/NN
last/JJ
year/NN
under/IN
then-chairman/NN
David/NNP
Ruder/NNP
./.
The/DT
measure/NN
is/VBZ
expected/VBN
to/TO
move/VB
through/IN
this/DT
Congress/NNP
./.
But/CC
the/DT
new/JJ
chairman/NN
vehemently/RB
opposed/VBD
a/DT
provision/NN
in/IN
the/DT
bill/NN
that/WDT
would/MD
give/VB
the/DT
agency/NN
the/DT
right/NN
to/TO
close/VB
the/DT
markets/NNS
at/IN
times/NNS
of/IN
stress/NN
./.
Mr./NNP
Breeden/NNP
contended/VBD
that/IN
uncertainty/NN
over/IN
when/WRB
the/DT
SEC/NNP
might/MD
act/VB
could/MD
worsen/VB
volatility/NN
in/IN
the/DT
markets/NNS
./.
He/PRP
argued/VBD
that/IN
the/DT
current/JJ
circuit-breaker/NN
system/NN
allows/VBZ
investors/NNS
to/TO
know/VB
``/``
precisely/RB
when/WRB
and/CC
where/WRB
any/DT
trading/NN
interruptions/NNS
will/MD
occur/VB
and/CC
how/WRB
long/RB
they/PRP
will/MD
last/VB
./.
''/''
Mr./NNP
Breeden/NNP
offered/VBD
strong/JJ
support/NN
for/IN
two/CD
other/JJ
provisions/NNS
in/IN
the/DT
bill/NN
./.
One/CD
would/MD
force/VB
brokerage/NN
houses/NNS
to/TO
provide/VB
the/DT
SEC/NNP
detailed/VBN
information/NN
about/IN
loans/NNS
made/VBN
by/IN
their/PRP$
holding/NN
companies/NNS
./.
Such/JJ
loans/NNS
often/RB
are/VBP
used/VBN
to/TO
finance/VB
leveraged/JJ
buy-outs/NNS
,/,
and/CC
the/DT
agency/NN
is/VBZ
worried/VBN
that/IN
a/DT
sharp/JJ
market/NN
drop/NN
could/MD
create/VB
capital/NN
problems/NNS
for/IN
the/DT
firms/NNS
./.
He/PRP
also/RB
backed/VBD
a/DT
rule/NN
to/TO
require/VB
large/JJ
traders/NNS
to/TO
report/VB
transactions/NNS
on/IN
a/DT
systematic/JJ
basis/NN
./.
That/DT
information/NN
,/,
he/PRP
argued/VBD
,/,
is/VBZ
critical/JJ
to/TO
reconstructing/VBG
sharp/JJ
market/NN
moves/NNS
,/,
such/JJ
as/IN
the/DT
one/CD
nearly/RB
two/CD
weeks/NNS
ago/IN
./.
In/IN
a/DT
rare/JJ
package/NN
sale/NN
of/IN
its/PRP$
real/JJ
estate/NN
,/,
K/NNP
mart/NNP
Corp./NNP
,/,
Troy/NNP
,/,
Mich./NNP
,/,
has/VBZ
sold/VBN
17/CD
of/IN
its/PRP$
strip/NN
shopping/NN
centers/NNS
to/TO
a/DT
limited/VBN
partnership/NN
led/VBN
by/IN
New/NNP
York/NNP
developer/NN
Philip/NNP
Pilevsky/NNP
,/,
according/VBG
to/TO
sources/NNS
familiar/JJ
with/IN
the/DT
transaction/NN
./.
They/PRP
estimate/VBP
the/DT
value/NN
of/IN
the/DT
transaction/NN
at/IN
close/NN
to/TO
$/$
100/CD
million/CD
./.
K/NNP
mart/NNP
officials/NNS
and/CC
Mr./NNP
Pilevsky/NNP
would/MD
n't/RB
comment/VB
on/IN
the/DT
sale/NN
./.
K/NNP
mart/NNP
previously/RB
had/VBD
announced/VBN
it/PRP
would/MD
report/VB
its/PRP$
third/JJ
consecutive/JJ
decline/NN
in/IN
quarterly/JJ
earnings/NNS
for/IN
the/DT
period/NN
ended/VBD
yesterday/NN
,/,
the/DT
same/JJ
day/NN
the/DT
real/JJ
estate/NN
deal/NN
was/VBD
completed/VBN
./.
Analysts/NNS
are/VBP
estimating/VBG
third-quarter/JJ
earnings/NNS
will/MD
drop/VB
between/IN
13/CD
%/NN
and/CC
20/CD
%/NN
to/TO
about/IN
50/CD
to/TO
55/CD
cents/NNS
per/IN
share/NN
,/,
compared/VBN
with/IN
63/CD
cents/NNS
per/IN
share/NN
in/IN
the/DT
year-ago/JJ
quarter/NN
./.
It/PRP
is/VBZ
unclear/JJ
what/WDT
effect/NN
the/DT
sale/NN
of/IN
the/DT
shopping/NN
centers/NNS
will/MD
have/VB
on/IN
earnings/NNS
./.
K/NNP
mart/NNP
developed/VBD
the/DT
centers/NNS
,/,
which/WDT
range/VBP
in/IN
size/NN
from/IN
about/IN
150,000/CD
square/JJ
feet/NNS
to/TO
just/RB
over/IN
250,000/CD
square/JJ
feet/NNS
./.
Most/JJS
are/VBP
anchored/VBN
by/IN
a/DT
K/NNP
mart/NNP
store/NN
./.
The/DT
retailer/NN
reportedly/RB
will/MD
lease/VB
its/PRP$
stores/NNS
back/RB
from/IN
the/DT
developer/NN
,/,
who/WP
plans/VBZ
to/TO
expand/VB
the/DT
small/JJ
centers/NNS
./.
The/DT
centers/NNS
comprise/VBP
a/DT
total/NN
of/IN
about/IN
1.6/CD
million/CD
square/JJ
feet/NNS
of/IN
retail/JJ
space/NN
./.
They/PRP
are/VBP
spread/VBN
around/IN
the/DT
country/NN
and/CC
include/VBP
locations/NNS
in/IN
California/NNP
,/,
Florida/NNP
,/,
Washington/NNP
and/CC
Arizona/NNP
./.
Mr./NNP
Pilevsky/NNP
,/,
who/WP
heads/VBZ
Philips/NNP
International/NNP
Holding/NNP
Corp./NNP
,/,
a/DT
New/NNP
York-based/JJ
real/JJ
estate/NN
company/NN
,/,
owns/VBZ
more/RBR
than/IN
a/DT
dozen/NN
other/JJ
shopping/NN
centers/NNS
in/IN
which/WDT
K/NNP
mart/NNP
is/VBZ
a/DT
tenant/NN
./.
The/DT
company/NN
is/VBZ
active/JJ
in/IN
office/NN
and/CC
residential/JJ
development/NN
in/IN
New/NNP
York/NNP
./.
However/RB
,/,
nationally/RB
,/,
Mr./NNP
Pilevsky/NNP
controls/VBZ
through/IN
limited/VBN
partnerships/NNS
about/IN
85/CD
shopping/NN
centers/NNS
with/IN
about/IN
17/CD
million/CD
square/JJ
feet/NNS
./.
K/NNP
mart/NNP
runs/VBZ
2,200/CD
K/NNP
mart/NNP
stores/NNS
,/,
primarily/RB
in/IN
leased/VBN
facilities/NNS
./.
The/DT
company/NN
typically/RB
sells/VBZ
the/DT
centers/NNS
it/PRP
develops/VBZ
,/,
but/CC
has/VBZ
usually/RB
sold/VBN
only/RB
one/CD
or/CC
several/JJ
at/IN
a/DT
time/NN
./.
Motorola/NNP
is/VBZ
fighting/VBG
back/RB
against/IN
junk/NN
mail/NN
./.
So/RB
much/RB
of/IN
the/DT
stuff/NN
poured/VBD
into/IN
its/PRP$
Austin/NNP
,/,
Texas/NNP
,/,
offices/NNS
that/IN
its/PRP$
mail/NN
rooms/NNS
there/RB
simply/RB
stopped/VBD
delivering/VBG
it/PRP
./.
Now/RB
,/,
thousands/NNS
of/IN
mailers/NNS
,/,
catalogs/NNS
and/CC
sales/NNS
pitches/NNS
go/VBP
straight/RB
into/IN
the/DT
trash/NN
./.
``/``
We/PRP
just/RB
do/VBP
n't/RB
have/VB
the/DT
staff/NN
to/TO
{/(
deliver/VB
}/)
it/PRP
,/,
nor/CC
do/VBP
we/PRP
have/VB
the/DT
space/NN
or/CC
the/DT
time/NN
,/,
''/''
says/VBZ
a/DT
spokesman/NN
for/IN
the/DT
Schaumburg/NNP
,/,
Ill./NNP
,/,
electronics/NNS
company/NN
,/,
which/WDT
has/VBZ
5,000/CD
employees/NNS
in/IN
the/DT
Austin/NNP
area/NN
./.
``/``
It/PRP
's/VBZ
the/DT
overload/NN
problem/NN
and/CC
the/DT
weight/NN
problem/NN
we/PRP
have/VBP
./.
''/''
Motorola/NNP
is/VBZ
in/IN
good/JJ
company/NN
./.
Businesses/NNS
across/IN
the/DT
country/NN
are/VBP
getting/VBG
fed/VBN
up/IN
with/IN
junk/NN
mail/NN
,/,
and/CC
some/DT
are/VBP
saying/VBG
they/PRP
just/RB
are/VBP
n't/RB
going/VBG
to/TO
take/VB
it/PRP
anymore/RB
--/:
literally/RB
./.
While/IN
no/DT
one/NN
has/VBZ
tracked/VBN
how/WRB
many/JJ
company/NN
mail/NN
rooms/NNS
throw/VBP
out/IN
junk/NN
mail/NN
,/,
direct-mail/JJ
advertising/NN
firms/NNS
say/VBP
the/DT
number/NN
is/VBZ
growing/VBG
./.
General/NNP
Motors/NNPS
earlier/RBR
this/DT
year/NN
said/VBD
it/PRP
would/MD
n't/RB
deliver/VB
bulk/JJ
mail/NN
or/CC
free/JJ
magazines/NNS
in/IN
its/PRP$
Flint/NNP
,/,
Mich./NNP
,/,
office/NN
,/,
while/IN
Air/NNP
Products/NNPS
&/CC
Chemicals/NNPS
,/,
Allentown/NNP
,/,
Pa./NNP
,/,
says/VBZ
it/PRP
screens/VBZ
junk/NN
mail/NN
and/CC
often/RB
throws/VBZ
out/IN
most/JJS
of/IN
a/DT
given/VBN
mass/NN
mailing/NN
./.
Why/WRB
the/DT
revolt/NN
?/.
Anybody/NN
with/IN
a/DT
mailbox/NN
can/MD
answer/VB
that/DT
:/:
sheer/NN
,/,
overwhelming/JJ
,/,
mind-numbing/JJ
volume/NN
./.
According/VBG
to/TO
the/DT
Direct/NNP
Marketing/NNP
Association/NNP
,/,
total/JJ
direct/JJ
mail/NN
--/:
to/TO
both/DT
businesses/NNS
and/CC
consumers/NNS
--/:
jumped/VBD
50/CD
%/NN
to/TO
65.4/CD
billion/CD
pieces/NNS
in/IN
1988/CD
from/IN
five/CD
years/NNS
earlier/RBR
./.
Though/IN
direct/JJ
mail/NN
to/TO
businesses/NNS
is/VBZ
n't/RB
broken/VBN
out/IN
separately/RB
,/,
the/DT
association/NN
says/VBZ
it/PRP
's/VBZ
growing/VBG
even/RB
faster/RBR
./.
The/DT
deluge/NN
has/VBZ
spurred/VBN
cost-conscious/JJ
companies/NNS
to/TO
action/NN
,/,
with/IN
mail/NN
rooms/NNS
throwing/VBG
the/DT
stuff/NN
out/IN
rather/RB
than/IN
taking/VBG
the/DT
time/NN
or/CC
money/NN
to/TO
deliver/VB
it/PRP
./.
The/DT
direct-mail/JJ
industry/NN
,/,
not/RB
surprisingly/RB
,/,
is/VBZ
fuming/VBG
at/IN
the/DT
injustice/NN
of/IN
it/PRP
all/DT
./.
After/IN
all/DT
,/,
this/DT
is/VBZ
the/DT
industry/NN
that/WDT
has/VBZ
a/DT
hard/JJ
enough/JJ
time/NN
getting/VBG
any/DT
respect/NN
,/,
that/DT
is/VBZ
the/DT
butt/NN
of/IN
so/RB
many/JJ
jokes/NNS
that/DT
television/NN
's/POS
``/``
L.A./NNP
Law/NNP
''/''
portrays/VBZ
direct-mail-mogul/NN
David/NNP
as/IN
short/JJ
,/,
bald/JJ
,/,
intensely/RB
nerdy/JJ
,/,
and/CC
unremittingly/RB
boring/JJ
./.
The/DT
practice/NN
of/IN
businesses/NNS
throwing/VBG
out/IN
junk/NN
mail/NN
``/``
is/VBZ
a/DT
commonly/RB
known/VBN
problem/NN
,/,
and/CC
it/PRP
's/VBZ
increasing/VBG
as/IN
companies/NNS
attempt/VBP
to/TO
put/VB
through/IN
budget/NN
cuts/NNS
across/IN
the/DT
board/NN
,/,
''/''
right/RB
down/IN
to/TO
the/DT
mail-room/NN
level/NN
,/,
says/VBZ
Stephen/NNP
Belth/NNP
,/,
a/DT
list/NN
consultant/NN
and/CC
chairman/NN
of/IN
the/DT
Direct/NNP
Marketing/NNP
Association/NNP
's/POS
business-to-business/NN
council/NN
./.
``/``
But/CC
it/PRP
's/VBZ
like/IN
biting/VBG
the/DT
hand/NN
that/WDT
feeds/VBZ
them/PRP
,/,
because/IN
every/DT
one/CD
of/IN
these/DT
companies/NNS
uses/VBZ
direct/JJ
marketing/NN
./.
''/''
It/PRP
's/VBZ
almost/RB
impossible/JJ
to/TO
track/VB
the/DT
number/NN
of/IN
companies/NNS
trashing/VBG
junk/NN
mail/NN
,/,
since/IN
the/DT
decision/NN
is/VBZ
usually/RB
made/VBN
in/IN
the/DT
mail/NN
room/NN
--/:
not/RB
the/DT
board/NN
room/NN
./.
And/CC
the/DT
practice/NN
often/RB
varies/VBZ
from/IN
location/NN
to/TO
location/NN
even/RB
within/IN
a/DT
company/NN
./.
But/CC
industry/NN
executives/NNS
say/VBP
businesses/NNS
seem/VBP
especially/RB
inclined/VBN
to/TO
dump/VB
mailers/NNS
sent/VBN
to/TO
titles/NNS
rather/RB
than/IN
to/TO
individual/JJ
names/NNS
./.
Motorola/NNP
's/POS
Austin/NNP
operation/NN
was/VBD
one/CD
of/IN
the/DT
first/JJ
to/TO
lose/VB
patience/NN
,/,
deciding/VBG
a/DT
few/JJ
years/NNS
ago/IN
to/TO
junk/VB
any/DT
bulk/JJ
mail/NN
that/DT
was/VBD
n't/RB
addressed/VBD
to/TO
an/DT
individual/NN
./.
Magazines/NNS
are/VBP
n't/RB
delivered/VBN
at/IN
all/DT
,/,
even/RB
if/IN
an/DT
individual/NN
's/POS
name/NN
is/VBZ
listed/VBN
;/:
employees/NNS
who/WP
want/VBP
their/PRP$
magazines/NNS
have/VBP
to/TO
pick/VB
them/PRP
up/IN
from/IN
the/DT
mail/NN
room/NN
or/CC
the/DT
company/NN
library/NN
--/:
and/CC
are/VBP
told/VBN
to/TO
change/VB
the/DT
subscriptions/NNS
to/TO
their/PRP$
home/NN
addresses/NNS
./.
At/IN
Air/NNP
Products/NNPS
,/,
meanwhile/RB
,/,
the/DT
mailroom/NN
staff/NN
opens/VBZ
junk/NN
mail/NN
and/CC
often/RB
throws/VBZ
it/PRP
away/RB
--/:
even/RB
if/IN
addressed/VBN
to/TO
an/DT
individual/NN
./.
``/``
If/IN
they/PRP
get/VBP
50/CD
packets/NNS
of/IN
something/NN
,/,
they/PRP
open/VBP
one/CD
,/,
see/VBP
what/WP
it/PRP
says/VBZ
,/,
throw/VBP
48/CD
away/RB
and/CC
send/VBP
two/CD
to/TO
people/NNS
or/CC
departments/NNS
they/PRP
think/VBP
are/VBP
appropriate/JJ
,/,
''/''
a/DT
spokesman/NN
says/VBZ
./.
Direct/JJ
marketers/NNS
were/VBD
especially/RB
alarmed/VBN
when/WRB
General/NNP
Motors/NNPS
--/:
one/CD
of/IN
the/DT
country/NN
's/POS
largest/JJS
companies/NNS
and/CC
a/DT
big/JJ
direct-mail/NN
user/NN
itself/PRP
--/:
entered/VBD
the/DT
junk-mail/NN
battle/NN
./.
As/IN
of/IN
March/NNP
1/CD
,/,
its/PRP$
Flint/NNP
office/NN
,/,
with/IN
about/IN
2,500/CD
employees/NNS
,/,
stopped/VBD
delivering/VBG
bulk/JJ
mail/NN
and/CC
non-subscription/JJ
magazines/NNS
./.
Employees/NNS
were/VBD
told/VBN
that/IN
if/IN
they/PRP
really/RB
wanted/VBD
the/DT
publications/NNS
,/,
they/PRP
would/MD
have/VB
to/TO
have/VB
them/PRP
sent/VBN
home/NN
instead/RB
./.
The/DT
reason/NN
:/:
overload/NN
,/,
especially/RB
of/IN
non-subscription/JJ
magazines/NNS
./.
Direct-mail/JJ
executives/NNS
see/VBP
GM/NNP
's/POS
stand/NN
as/IN
an/DT
ominous/JJ
sign/NN
--/:
even/RB
if/IN
the/DT
junk-mail/JJ
kings/NNS
did/VBD
bring/VB
it/PRP
on/IN
themselves/PRP
./.
``/``
Why/WRB
anyone/NN
would/MD
want/VB
to/TO
close/VB
themselves/PRP
off/IN
{/(
from/IN
direct/JJ
mail/NN
a/FW
priori/FW
,/,
does/VBZ
n't/RB
make/VB
any/DT
sense/NN
,/,
''/''
says/VBZ
Michael/NNP
Bronner/NNP
of/IN
Bronner/NNP
Slosberg/NNP
Associates/NNPS
,/,
a/DT
Boston/NNP
directmail/NN
firm/NN
./.
``/``
It/PRP
smacks/VBZ
of/IN
big/JJ
brotherism/NN
./.
They/PRP
're/VBP
going/VBG
to/TO
decide/VB
what/WP
their/PRP$
employees/NNS
can/MD
or/CC
can/MD
not/RB
read/VB
./.
''/''
The/DT
practice/NN
is/VBZ
,/,
however/RB
,/,
legal/JJ
in/IN
most/JJS
cases/NNS
./.
Jack/NNP
Ellis/NNP
,/,
a/DT
U.S./NNP
postal/JJ
inspector/NN
in/IN
New/NNP
York/NNP
,/,
says/VBZ
the/DT
Postal/NNP
Service/NNP
's/POS
only/JJ
job/NN
is/VBZ
to/TO
deliver/VB
the/DT
mail/NN
to/TO
the/DT
mail/NN
room/NN
;/:
once/IN
it/PRP
gets/VBZ
there/RB
,/,
a/DT
company/NN
can/MD
do/VB
with/IN
it/PRP
what/WP
it/PRP
wishes/VBZ
./.
The/DT
junk-mail/NN
titans/NNS
,/,
ever/RB
optimistic/JJ
,/,
are/VBP
looking/VBG
for/IN
ways/NNS
around/IN
the/DT
problem/NN
./.
So/IN
far/RB
,/,
they/PRP
say/VBP
,/,
it/PRP
has/VBZ
n't/RB
had/VBN
any/DT
noticeable/JJ
effect/NN
on/IN
response/NN
rates/NNS
./.
And/CC
before/IN
it/PRP
does/VBZ
,/,
they/PRP
're/VBP
trying/VBG
to/TO
cut/VB
back/RB
on/IN
the/DT
clutter/NN
that/WDT
created/VBD
the/DT
situation/NN
in/IN
the/DT
first/JJ
place/NN
./.
Among/IN
other/JJ
things/NNS
,/,
the/DT
industry/NN
is/VBZ
trying/VBG
to/TO
come/VB
up/IN
with/IN
standardized/JJ
business/NN
lists/NNS
that/WDT
cut/VBP
down/IN
on/IN
duplications/NNS
./.
``/``
We/PRP
're/VBP
going/VBG
to/TO
have/VB
to/TO
mail/VB
a/DT
lot/NN
less/JJR
and/CC
a/DT
lot/NN
smarter/RBR
,/,
''/''
says/VBZ
Jack/NNP
Miller/NNP
,/,
president/NN
of/IN
Quill/NNP
Corp./NNP
,/,
a/DT
Lincolnshire/NNP
,/,
Ill./NNP
,/,
business-to-business/NN
mail-order/NN
company/NN
./.
But/CC
then/RB
again/RB
,/,
mailing/VBG
less/RBR
and/CC
smarter/RBR
wo/MD
n't/RB
be/VB
much/RB
help/VB
if/IN
the/DT
mail/NN
ends/VBZ
up/IN
in/IN
the/DT
garbage/NN
anyway/RB
./.
New/NNP
Hyundai/NNP
Campaign/NNP
Hyundai/NNP
Motor/NNP
America/NNP
,/,
fighting/VBG
quality/NN
complaints/NNS
,/,
declining/VBG
sales/NNS
and/CC
management/NN
turmoil/NN
,/,
yesterday/NN
unveiled/VBD
its/PRP$
1990/CD
ad/NN
strategy/NN
,/,
tagged/VBN
``/``
We/PRP
're/VBP
Making/VBG
More/JJR
Sense/NN
Than/IN
Ever/RB
./.
''/''
The/DT
ad/NN
campaign/NN
,/,
created/VBN
by/IN
Saatchi/NNP
&/CC
Saatchi/NNP
's/POS
Backer/NNP
Spielvogel/NNP
Bates/NNP
agency/NN
,/,
is/VBZ
an/DT
extension/NN
of/IN
the/DT
auto/NN
company/NN
's/POS
``/``
Cars/NNS
That/WDT
Make/VBP
Sense/NN
''/''
campaign/NN
,/,
which/WDT
emphasized/VBD
affordability/NN
./.
TV/NN
ads/NNS
plugging/VBG
the/DT
company/NN
's/POS
new/JJ
V-6/NNP
Sonata/NNP
and/CC
its/PRP$
souped-up/JJ
Excel/NNP
subcompact/NN
will/MD
begin/VB
appearing/VBG
Monday/NNP
./.
One/CD
spot/NN
shows/VBZ
a/DT
Sonata/NNP
next/JJ
to/TO
a/DT
rival/JJ
midsized/JJ
car/NN
,/,
and/CC
an/DT
announcer/NN
says/VBZ
,/,
``/``
Listen/VB
to/TO
what/WP
they/PRP
're/VBP
saying/VBG
about/IN
the/DT
Hyundai/NNP
Sonata/NNP
./.
''/''
As/IN
the/DT
announcer/NN
reads/VBZ
favorable/JJ
quotes/NNS
about/IN
the/DT
model/NN
from/IN
Motor/NNP
Trend/NNP
and/CC
Road/NNP
&/CC
Track/NNP
magazines/NNS
,/,
the/DT
other/JJ
car/NN
,/,
which/WDT
is/VBZ
white/JJ
,/,
slowly/RB
turns/VBZ
green/JJ
./.
``/``
No/RB
wonder/VB
the/DT
competition/NN
's/POS
green/NN
with/IN
envy/NN
,/,
''/''
the/DT
announcer/NN
says/VBZ
./.
Ad/NNP
Notes/NNPS
.../:
./.
ACQUISITION/NNP
:/:
EWDB/NNP
,/,
formed/VBN
by/IN
the/DT
merger/NN
of/IN
Eurocom/NNP
and/CC
Della/NNP
Femina/NNP
McNamee/NNP
WCRS/NNP
,/,
said/VBD
it/PRP
agreed/VBD
to/TO
buy/VB
Vizeversa/NNP
,/,
an/DT
agency/NN
in/IN
Barcelona/NNP
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
HOLIDAY/NNP
ADS/NNPS
:/:
Seagram/NNP
will/MD
run/VB
two/CD
interactive/JJ
ads/NNS
in/IN
December/NNP
magazines/NNS
promoting/VBG
its/PRP$
Chivas/NNP
Regal/NNP
and/CC
Crown/NNP
Royal/NNP
brands/NNS
./.
The/DT
Chivas/NNP
ad/NN
illustrates/VBZ
--/:
via/IN
a/DT
series/NN
of/IN
pullouts/NNS
--/:
the/DT
wild/JJ
reactions/NNS
from/IN
the/DT
pool/NN
man/NN
,/,
gardener/NN
and/CC
others/NNS
if/IN
not/RB
given/VBN
Chivas/NNP
for/IN
Christmas/NNP
./.
The/DT
three-page/JJ
Crown/NNP
Royal/NNP
ad/NN
features/VBZ
a/DT
black-and-white/JJ
shot/NN
of/IN
a/DT
boring/JJ
holiday/NN
party/NN
--/:
and/CC
a/DT
set/NN
of/IN
colorful/JJ
stickers/NNS
with/IN
which/WDT
readers/NNS
can/MD
dress/VB
it/PRP
up/IN
./.
Both/DT
ads/NNS
were/VBD
designed/VBN
by/IN
Omnicom/NNP
's/POS
DDB/NNP
Needham/NNP
agency/NN
./.
Senate/NNP
Democrats/NNPS
who/WP
favor/VBP
cutting/VBG
the/DT
capital-gains/JJ
tax/NN
are/VBP
n't/RB
ready/JJ
to/TO
line/VB
up/IN
behind/IN
the/DT
leading/VBG
Senate/NNP
proposal/NN
./.
Their/PRP$
reluctance/NN
to/TO
support/VB
the/DT
proposal/NN
is/VBZ
another/DT
blow/NN
to/TO
the/DT
capital-gains/JJ
cut/NN
,/,
which/WDT
has/VBZ
had/VBN
a/DT
roller-coaster/NN
existence/NN
since/IN
the/DT
beginning/NN
of/IN
the/DT
year/NN
,/,
when/WRB
it/PRP
was/VBD
considered/VBN
dead/JJ
and/CC
then/RB
suddenly/RB
revived/VBN
and/CC
was/VBD
passed/VBN
by/IN
the/DT
House/NNP
./.
Nevertheless/RB
,/,
Oregon/NNP
Sen./NNP
Bob/NNP
Packwood/NNP
,/,
the/DT
ranking/JJ
GOP/NNP
member/NN
on/IN
the/DT
tax-writing/JJ
Senate/NNP
Finance/NNP
Committee/NNP
,/,
last/JJ
night/NN
introduced/VBD
his/PRP$
plan/NN
as/IN
an/DT
amendment/NN
to/TO
a/DT
pending/JJ
measure/NN
authorizing/VBG
U.S./NNP
aid/NN
for/IN
Poland/NNP
and/CC
Hungary/NNP
./.
Senate/NNP
Majority/NNP
Leader/NNP
George/NNP
Mitchell/NNP
D./NNP
,/,
Maine/NNP
he/PRP
had/VBD
enough/RB
votes/NNS
to/TO
block/VB
the/DT
maneuver/NN
on/IN
procedural/JJ
grounds/NNS
,/,
perhaps/RB
as/RB
soon/RB
as/IN
today/NN
./.
Mr./NNP
Packwood/NNP
all/DT
but/CC
conceded/VBD
defeat/NN
,/,
telling/VBG
Mr./NNP
Mitchell/NNP
:/:
``/``
I/PRP
sense/VBP
at/IN
this/DT
stage/NN
you/PRP
may/MD
have/VB
the/DT
votes/NNS
./.
''/''
The/DT
two/CD
lawmakers/NNS
sparred/VBD
in/IN
a/DT
highly/RB
personal/JJ
fashion/NN
,/,
violating/VBG
usual/JJ
Senate/NNP
decorum/NN
./.
Their/PRP$
tone/NN
was/VBD
good-natured/JJ
,/,
with/IN
Mr./NNP
Packwood/NNP
saying/VBG
he/PRP
intended/VBD
to/TO
offer/VB
the/DT
proposal/NN
again/RB
and/CC
again/RB
on/IN
future/JJ
legislation/NN
and/CC
Sen./NNP
Mitchell/NNP
saying/VBG
he/PRP
intended/VBD
to/TO
use/VB
procedural/JJ
means/NNS
to/TO
block/VB
it/PRP
again/RB
and/CC
again/RB
./.
Although/IN
the/DT
proposal/NN
,/,
authored/VBN
by/IN
Mr./NNP
Packwood/NNP
and/CC
Sen./NNP
William/NNP
Roth/NNP
R./NNP
,/,
Del./NNP
general/JJ
backing/NN
by/IN
Republicans/NNPS
,/,
their/PRP$
votes/NNS
are/VBP
n't/RB
sufficient/JJ
to/TO
pass/VB
it/PRP
./.
And/CC
Democrats/NNPS
,/,
who/WP
are/VBP
under/IN
increasing/VBG
pressure/NN
from/IN
their/PRP$
leaders/NNS
to/TO
reject/VB
the/DT
gains-tax/JJ
cut/NN
,/,
are/VBP
finding/VBG
reasons/NNS
to/TO
say/VB
no/RB
,/,
at/IN
least/JJS
for/IN
now/RB
./.
A/DT
major/JJ
reason/NN
is/VBZ
that/IN
they/PRP
believe/VBP
the/DT
Packwood-Roth/NNP
plan/NN
would/MD
lose/VB
buckets/NNS
of/IN
revenue/NN
over/IN
the/DT
long/JJ
run/NN
./.
The/DT
Packwood-Roth/NNP
proposal/NN
would/MD
reduce/VB
the/DT
tax/NN
depending/VBG
on/IN
how/WRB
long/JJ
an/DT
asset/NN
was/VBD
held/VBN
./.
It/PRP
also/RB
would/MD
create/VB
a/DT
new/JJ
individual/JJ
retirement/NN
account/NN
that/WDT
would/MD
shield/VB
from/IN
taxation/NN
the/DT
appreciation/NN
on/IN
investments/NNS
made/VBN
for/IN
a/DT
wide/JJ
variety/NN
of/IN
purposes/NNS
,/,
including/VBG
retirement/NN
,/,
medical/JJ
expenses/NNS
,/,
first-home/JJ
purchases/NNS
and/CC
tuition/NN
./.
``/``
A/DT
number/NN
of/IN
us/PRP
are/VBP
not/RB
going/VBG
to/TO
touch/VB
capital/NN
gains/NNS
,/,
IRAs/NNS
or/CC
anything/NN
else/RB
unless/IN
it/PRP
contributes/VBZ
to/TO
deficit-reduction/NN
,/,
''/''
said/VBD
Sen./NNP
Charles/NNP
Robb/NNP
D./NNP
,/,
Va./NNP
who/WP
is/VBZ
one/CD
of/IN
the/DT
10/CD
to/TO
20/CD
Democrats/NNPS
who/WP
the/DT
Bush/NNP
administration/NN
believes/VBZ
might/MD
favor/VB
giving/VBG
preferential/JJ
treatment/NN
to/TO
capital/NN
gains/NNS
./.
President/NNP
Bush/NNP
has/VBZ
been/VBN
hearing/VBG
this/DT
kind/NN
of/IN
opposition/NN
first/JJ
hand/NN
during/IN
meetings/NNS
over/IN
the/DT
past/JJ
two/CD
days/NNS
with/IN
Democratic/JJ
senators/NNS
at/IN
the/DT
White/NNP
House/NNP
./.
And/CC
at/IN
a/DT
luncheon/NN
meeting/NN
Tuesday/NNP
of/IN
Democratic/JJ
senators/NNS
,/,
there/EX
was/VBD
outspoken/JJ
opposition/NN
to/TO
cutting/VBG
the/DT
capital-gains/JJ
tax/NN
this/DT
year/NN
,/,
according/VBG
to/TO
participants/NNS
./.
The/DT
trend/NN
is/VBZ
making/VBG
advocates/NNS
of/IN
the/DT
tax/NN
cut/NN
less/RBR
optimistic/JJ
about/IN
success/NN
./.
``/``
There/EX
is/VBZ
a/DT
one-out-of-three/JJ
shot/NN
of/IN
getting/VBG
it/PRP
this/DT
year/NN
,/,
''/''
said/VBD
Sen./NNP
David/NNP
Boren/NNP
of/IN
Oklahoma/NNP
,/,
a/DT
leading/VBG
Democratic/JJ
proponent/NN
of/IN
cutting/VBG
the/DT
capital-gains/JJ
tax/NN
./.
He/PRP
called/VBD
the/DT
battle/NN
``/``
uphill/JJ
./.
''/''
Other/JJ
Democrats/NNPS
who/WP
favor/VBP
a/DT
capital-gains/JJ
cut/NN
are/VBP
even/RB
more/RBR
pessimistic/JJ
./.
``/``
There/EX
will/MD
be/VB
no/DT
capital-gains/JJ
bill/NN
this/DT
year/NN
,/,
''/''
said/VBD
Sen./NNP
Dale/NNP
Bumpers/NNP
D./NNP
,/,
Ark/NNP
./.
``/``
I/PRP
'm/VBP
probably/RB
not/RB
going/VBG
to/TO
vote/VB
for/IN
any/DT
capital-gains/JJ
proposal/NN
./.
The/DT
IRA/NNP
portion/NN
the/DT
Packwood-Roth/NNP
plan/NN
''/''
Another/DT
significant/JJ
factor/NN
in/IN
the/DT
capitalgains/NNS
debate/NN
is/VBZ
the/DT
extent/NN
to/TO
which/WDT
it/PRP
has/VBZ
become/VBN
a/DT
purely/RB
political/JJ
battle/NN
between/IN
President/NNP
Bush/NNP
and/CC
Senate/NNP
Majority/NNP
Leader/NNP
Mitchell/NNP
./.
Mr./NNP
Mitchell/NNP
has/VBZ
made/VBN
clear/JJ
to/TO
his/PRP$
wavering/VBG
colleagues/NNS
that/IN
the/DT
issue/NN
is/VBZ
important/JJ
to/TO
him/PRP
personally/RB
./.
Today/NN
,/,
Sen./NNP
Mitchell/NNP
and/CC
other/JJ
leading/VBG
Democrats/NNPS
plan/VBP
to/TO
turn/VB
up/IN
the/DT
heat/NN
again/RB
by/IN
holding/VBG
a/DT
news/NN
conference/NN
to/TO
bash/VB
the/DT
proposal/NN
./.
Estimates/NNS
requested/VBN
by/IN
Sen./NNP
Mitchell/NNP
from/IN
the/DT
Congressional/NNP
Joint/NNP
Taxation/NNP
Committee/NNP
show/VBP
that/IN
the/DT
richest/JJS
100/CD
taxpayers/NNS
got/VBD
an/DT
average/JJ
benefit/NN
from/IN
the/DT
capital-gains/JJ
differential/NN
of/IN
$/$
13/CD
million/CD
each/DT
in/IN
1985/CD
,/,
the/DT
last/JJ
year/NN
for/IN
which/WDT
figures/NNS
are/VBP
available/JJ
./.
White/NNP
House/NNP
officials/NNS
acknowledged/VBD
yesterday/NN
that/IN
Democrats/NNPS
still/RB
are/VBP
reluctant/JJ
to/TO
publicly/RB
express/VB
support/NN
for/IN
the/DT
Packwood-Roth/NNP
capital/NN
gains/NNS
proposal/NN
because/IN
they/PRP
are/VBP
loath/JJ
to/TO
buck/VB
Sen./NNP
Mitchell/NNP
./.
As/IN
a/DT
result/NN
,/,
the/DT
officials/NNS
said/VBD
they/PRP
are/VBP
open/JJ
to/TO
making/VBG
a/DT
variety/NN
of/IN
deals/NNS
with/IN
Senate/NNP
Democrats/NNPS
to/TO
win/VB
their/PRP$
support/NN
for/IN
a/DT
capital-gains/JJ
tax/NN
cut/NN
./.
Democrats/NNPS
asked/VBD
in/IN
this/DT
week/NN
for/IN
discussions/NNS
with/IN
President/NNP
Bush/NNP
have/VBP
suggested/VBN
ways/NNS
of/IN
``/``
tinkering/VBG
''/''
with/IN
the/DT
Packwood-Roth/NNP
proposal/NN
,/,
suggesting/VBG
an/DT
interest/NN
in/IN
looking/VBG
for/IN
a/DT
modified/VBN
version/NN
they/PRP
can/MD
back/VB
,/,
one/CD
official/NN
said/VBD
./.
In/IN
addition/NN
,/,
White/NNP
House/NNP
aides/NNS
think/VBP
that/IN
there/EX
are/VBP
numerous/JJ
other/JJ
important/JJ
measures/NNS
Democrats/NNPS
badly/RB
wanted/VBD
passed/VBN
--/:
such/JJ
as/IN
the/DT
scaling/NN
back/RB
of/IN
a/DT
controversial/JJ
catastrophic/JJ
health-care/JJ
plan/NN
for/IN
the/DT
elderly/JJ
--/:
that/WDT
might/MD
provide/VB
the/DT
president/NN
leverage/NN
in/IN
cutting/VBG
deals/NNS
with/IN
Democrats/NNPS
./.
A/DT
capital-gains/JJ
tax/NN
cut/NN
might/MD
be/VB
paired/VBN
with/IN
such/JJ
measures/NNS
to/TO
help/VB
ensure/VB
passage/NN
./.
Other/JJ
possibilities/NNS
include/VBP
a/DT
child-care/JJ
initiative/NN
and/CC
an/DT
increase/NN
in/IN
the/DT
minimum/JJ
wage/NN
./.
If/IN
they/PRP
ca/MD
n't/RB
secure/VB
immediate/JJ
passage/NN
of/IN
a/DT
capital-gains/JJ
plan/NN
,/,
administration/NN
officials/NNS
also/RB
are/VBP
n't/RB
ruling/VBG
out/IN
making/VBG
a/DT
deal/NN
with/IN
Congress/NNP
to/TO
put/VB
off/IN
a/DT
vote/NN
until/IN
a/DT
firm/JJ
date/NN
in/IN
the/DT
future/NN
,/,
even/RB
next/JJ
year/NN
./.
But/CC
the/DT
officials/NNS
insist/VBP
that/IN
such/PDT
a/DT
deal/NN
on/IN
a/DT
future/JJ
vote/NN
would/MD
have/VB
to/TO
apply/VB
to/TO
both/PDT
the/DT
House/NNP
and/CC
the/DT
Senate/NNP
./.
Gerald/NNP
F./NNP
Seib/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Japanese/JJ
immigration/NN
authorities/NNS
said/VBD
they/PRP
found/VBD
658/CD
more/JJR
Chinese/NNP
among/IN
Vietnamese/JJ
boat/NN
people/NNS
,/,
bringing/VBG
the/DT
number/NN
of/IN
Chinese/NNP
trying/VBG
to/TO
enter/VB
Japan/NNP
by/IN
posing/VBG
as/IN
Vietnamese/JJ
refugees/NNS
this/DT
year/NN
to/TO
1,642/CD
./.
Japan/NNP
plans/VBZ
to/TO
send/VB
the/DT
Chinese/NNP
back/RB
home/NN
and/CC
is/VBZ
negotiating/VBG
with/IN
the/DT
Chinese/JJ
government/NN
,/,
a/DT
Justice/NNP
Ministry/NNP
official/NN
said/VBD
./.
The/DT
Chinese/NNP
were/VBD
among/IN
3,372/CD
boat/NN
people/NNS
supposedly/RB
from/IN
Vietnam/NNP
who/WP
arrived/VBD
in/IN
Japan/NNP
this/DT
year/NN
,/,
compared/VBN
with/IN
219/CD
for/IN
all/DT
of/IN
1988/CD
,/,
the/DT
official/NN
said/VBD
./.
The/DT
658/CD
Chinese/NNP
,/,
who/WP
have/VBP
been/VBN
in/IN
a/DT
refugee-assistance/NN
center/NN
,/,
were/VBD
sent/VBN
to/TO
immigration/NN
facilities/NNS
yesterday/NN
pending/IN
deportation/NN
to/TO
China/NNP
,/,
the/DT
official/NN
said/VBD
./.
On/IN
Sept./NNP
13/CD
,/,
Japan/NNP
began/VBD
a/DT
policy/NN
of/IN
screening/VBG
boat/NN
people/NNS
,/,
accepting/VBG
only/RB
those/DT
deemed/VBN
to/TO
be/VB
political/JJ
refugees/NNS
./.
Francoise/NNP
Verne/NNP
,/,
52-year-old/JJ
former/JJ
deputy/JJ
director/NN
of/IN
France/NNP
's/POS
mint/NN
,/,
faces/VBZ
prison/NN
for/IN
her/PRP$
theft/NN
of/IN
some/DT
67/CD
rare/JJ
coins/NNS
from/IN
the/DT
mint/NN
's/POS
collections/NNS
./.
Second/JJ
in/IN
command/NN
from/IN
1979/CD
to/TO
1984/CD
,/,
Mrs./NNP
Verne/NNP
told/VBD
a/DT
Paris/NNP
court/NN
that/IN
the/DT
``/``
great/JJ
disorder/NN
''/''
that/WDT
reigned/VBD
at/IN
the/DT
agency/NN
led/VBD
her/PRP
into/IN
temptation/NN
./.
Before/IN
an/DT
inventory/NN
in/IN
1984/CD
that/WDT
showed/VBD
the/DT
``/``
disappearance/NN
''/''
of/IN
944/CD
coins/NNS
valued/VBN
at/IN
about/IN
2.9/CD
million/CD
French/NNP
francs/NNS
$/$
465,000/CD
there/EX
had/VBD
n't/RB
been/VBN
any/DT
stock-taking/NN
since/IN
1868/CD
./.
Tony/NNP
Lambert/NNP
,/,
Mrs./NNP
Verne/NNP
's/POS
successor/NN
,/,
says/VBZ
the/DT
mint/NN
's/POS
losses/NNS
from/IN
the/DT
theft/NN
run/VBP
into/IN
the/DT
hundreds/NNS
of/IN
thousands/NNS
of/IN
francs/NNS
./.
El/NNP
Salvador/NNP
is/VBZ
destroying/VBG
more/RBR
than/IN
1.6/CD
million/CD
pounds/NNS
of/IN
food/NN
that/WDT
had/VBD
rotted/VBN
in/IN
government/NN
warehouses/NNS
,/,
government/NN
officials/NNS
said/VBD
./.
The/DT
state/NN
Supply/NNP
Regulator/NNP
Institute/NNP
is/VBZ
to/TO
burn/VB
rice/NN
,/,
corn/NN
and/CC
beans/NNS
that/WDT
spoiled/VBD
because/IN
of/IN
neglect/NN
and/CC
corruption/NN
in/IN
the/DT
previous/JJ
Christian/NNP
Democrat/NNP
government/NN
,/,
a/DT
statement/NN
from/IN
the/DT
information/NN
service/NN
SISAL/NNP
said/VBD
./.
During/IN
the/DT
past/JJ
administration/NN
the/DT
foodstuffs/NNS
were/VBD
first/RB
bought/VBN
by/IN
the/DT
institute/NN
,/,
then/RB
sold/VBN
at/IN
low/JJ
prices/NNS
to/TO
``/``
unscrupulous/JJ
businessmen/NNS
''/''
who/WP
resold/VBP
them/PRP
to/TO
the/DT
institute/NN
at/IN
inflated/JJ
prices/NNS
,/,
the/DT
statement/NN
said/VBD
./.
A/DT
black-draped/JJ
cruise/NN
liner/NN
sailed/VBD
into/IN
Naples/NNP
yesterday/NN
bringing/VBG
800/CD
Libyans/NNPS
threatening/JJ
vengeance/NN
if/IN
Italy/NNP
refuses/VBZ
to/TO
pay/VB
compensation/NN
for/IN
more/RBR
than/IN
30/CD
years/NNS
of/IN
colonial/NN
rule/NN
./.
Another/DT
250/CD
Libyans/NNPS
were/VBD
already/RB
in/IN
Italy/NNP
to/TO
stage/VB
a/DT
day/NN
of/IN
mourning/VBG
for/IN
victims/NNS
of/IN
Italy/NNP
's/POS
colonial/NN
rule/NN
between/IN
1911/CD
and/CC
1943/CD
,/,
when/WRB
Tripoli/NNP
says/VBZ
Rome/NNP
kidnapped/VBD
5,000/CD
Libyans/NNPS
and/CC
deported/VBD
them/PRP
as/RB
forced/VBN
labor/NN
./.
Libya/NNP
's/POS
revolutionary/JJ
Committees/NNS
have/VBP
threatened/VBN
attacks/NNS
on/IN
Italians/NNPS
if/IN
Rome/NNP
does/VBZ
n't/RB
pay/VB
compensation/NN
./.
But/CC
officials/NNS
in/IN
Rome/NNP
say/VBP
the/DT
issue/NN
was/VBD
legally/RB
resolved/VBN
by/IN
a/DT
settlement/NN
between/IN
Italy/NNP
and/CC
King/NNP
Idris/NNP
,/,
deposed/VBN
by/IN
Col./NNP
Muammar/NNP
Gadhafi/NNP
in/IN
1969/CD
./.
Canadian/NNP
Indians/NNPS
are/VBP
taking/VBG
five/CD
countries/NNS
to/TO
court/NN
in/IN
a/DT
bid/NN
to/TO
stop/VB
low/JJ
military/JJ
flights/NNS
over/IN
their/PRP$
homes/NNS
,/,
the/DT
Dutch/NNP
Defense/NNP
Ministry/NNP
said/VBD
./.
Representatives/NNS
of/IN
the/DT
Inuit/NNP
and/CC
Cree/NNP
peoples/NNS
living/VBG
in/IN
Quebec/NNP
and/CC
Labrador/NNP
in/IN
northeastern/JJ
Canada/NNP
told/VBD
the/DT
ministry/NN
of/IN
the/DT
planned/VBN
action/NN
at/IN
a/DT
meeting/NN
,/,
a/DT
ministry/NN
spokesman/NN
said/VBD
./.
They/PRP
also/RB
wanted/VBD
to/TO
prevent/VB
a/DT
NATO/NNP
training/NN
base/NN
being/VBG
built/VBN
in/IN
the/DT
region/NN
,/,
he/PRP
said/VBD
./.
The/DT
action/NN
,/,
in/IN
the/DT
Canadian/NNP
Federal/NNP
Court/NNP
,/,
will/MD
be/VB
against/IN
Canada/NNP
,/,
the/DT
Netherlands/NNP
,/,
West/NNP
Germany/NNP
,/,
Britain/NNP
and/CC
the/DT
U.S./NNP
,/,
the/DT
ministry/NN
spokesman/NN
said/VBD
./.
Japan/NNP
suspended/VBD
imports/NNS
of/IN
French/NNP
mushrooms/NNS
after/IN
finding/VBG
some/DT
contaminated/VBN
by/IN
radiation/NN
,/,
an/DT
official/NN
of/IN
the/DT
Ministry/NNP
of/IN
Health/NNP
and/CC
Welfare/NNP
said/VBD
./.
Japan/NNP
has/VBZ
been/VBN
testing/VBG
imported/VBN
food/NN
from/IN
Europe/NNP
since/IN
the/DT
April/NNP
1986/CD
Chernobyl/NNP
accident/NN
in/IN
the/DT
Soviet/NNP
Union/NNP
,/,
the/DT
spokesman/NN
said/VBD
./.
Since/IN
then/RB
,/,
the/DT
ministry/NN
has/VBZ
announced/VBN
50/CD
bans/NNS
on/IN
food/NN
imports/NNS
from/IN
European/JJ
countries/NNS
,/,
including/VBG
Italy/NNP
,/,
Spain/NNP
,/,
Turkey/NNP
,/,
Greece/NNP
and/CC
the/DT
Soviet/NNP
Union/NNP
./.
The/DT
Venice/NNP
city/NN
council/NN
is/VBZ
battling/VBG
plans/NNS
to/TO
tap/VB
huge/JJ
gas/NN
fields/NNS
off/IN
the/DT
coast/NN
that/IN
it/PRP
says/VBZ
will/MD
speed/VB
up/IN
the/DT
city/NN
's/POS
slow/JJ
sinking/NN
into/IN
its/PRP$
lagoon/NN
./.
AGIP/NNP
,/,
the/DT
state-owned/JJ
energy/NN
giant/NN
,/,
made/VBD
the/DT
announcement/NN
about/IN
the/DT
gas/NN
field/NN
last/JJ
month/NN
./.
Located/VBN
six/CD
miles/NNS
northeast/RB
of/IN
Venice/NNP
,/,
the/DT
field/NN
contains/VBZ
875/CD
billion/CD
cubic/JJ
feet/NNS
of/IN
methane/NN
gas/NN
-/:
one-tenth/NN
of/IN
Italy/NNP
's/POS
reserves/NNS
./.
Alarmed/JJ
councilors/NNS
say/VBP
the/DT
project/NN
could/MD
jeopardize/VB
costly/JJ
efforts/NNS
to/TO
stop/VB
,/,
or/CC
slow/VB
down/IN
,/,
the/DT
subsidence/NN
that/WDT
makes/VBZ
Venice/NNP
subject/JJ
to/TO
regular/JJ
and/CC
destructive/JJ
flooding/NN
./.
The/DT
council/NN
unanimously/RB
opposed/VBD
the/DT
idea/NN
of/IN
AGIP/NNP
pumping/VBG
out/IN
the/DT
methane/NN
gas/NN
and/CC
swiftly/RB
appealed/VBD
to/TO
the/DT
company/NN
and/CC
to/TO
Prime/NNP
Minister/NNP
Giulio/NNP
Andreotti/NNP
,/,
who/WP
has/VBZ
yet/RB
to/TO
reply/VB
./.
AGIP/NNP
refused/VBD
to/TO
reconsider/VB
and/CC
says/VBZ
drilling/NN
is/VBZ
due/JJ
to/TO
start/VB
early/JJ
next/JJ
year/NN
./.
``/``
It/PRP
's/VBZ
unlikely/RB
extracting/VBG
the/DT
gas/NN
will/MD
cause/VB
subsidence/NN
,/,
''/''
says/VBZ
a/DT
spokeswoman/NN
./.
Thieves/NNS
stole/VBD
a/DT
12th/JJ
century/NN
fresco/NN
from/IN
an/DT
abandoned/VBN
church/NN
in/IN
Camerino/NNP
,/,
Italy/NNP
,/,
by/IN
removing/VBG
the/DT
entire/JJ
wall/NN
on/IN
which/WDT
the/DT
work/NN
had/VBD
been/VBN
painted/VBN
,/,
police/NNS
said/VBD
.../:
./.
West/NNP
Germany/NNP
's/POS
BMW/NNP
commissioned/VBD
the/DT
Nuremberg/NNP
post/NN
office/NN
to/TO
test/VB
a/DT
prototype/NN
battery-powered/JJ
car/NN
./.
The/DT
vehicle/NN
has/VBZ
a/DT
top/JJ
speed/NN
of/IN
65/CD
miles/NNS
an/DT
hour/NN
and/CC
requires/VBZ
recharging/VBG
from/IN
a/DT
standard/JJ
wall/NN
socket/NN
every/DT
100/CD
miles/NNS
./.
Total/NNP
Assets/NNPS
Protection/NNP
Inc./NNP
,/,
rebounding/VBG
from/IN
its/PRP$
earlier/JJR
loss/NN
,/,
expects/VBZ
to/TO
report/VB
earnings/NNS
from/IN
operations/NNS
of/IN
about/IN
$/$
200,000/CD
for/IN
the/DT
third/JJ
quarter/NN
,/,
J.C./NNP
Matlock/NNP
,/,
chairman/NN
,/,
said/VBD
./.
Net/JJ
income/NN
includes/VBZ
an/DT
extraordinary/JJ
gain/NN
of/IN
about/IN
$/$
100,000/CD
from/IN
the/DT
reversal/NN
of/IN
bad/JJ
debt/NN
and/CC
interest/NN
income/NN
./.
Revenue/NN
was/VBD
about/IN
$/$
4.5/CD
million/CD
./.
In/IN
the/DT
1988/CD
third/JJ
quarter/NN
,/,
the/DT
company/NN
posted/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
876,706/CD
,/,
or/CC
22/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
about/IN
$/$
5.1/CD
million/CD
./.
Total/NNP
Assets/NNPS
plans/VBZ
and/CC
designs/VBZ
computer/NN
centers/NNS
,/,
computer/NN
security/NN
systems/NNS
and/CC
computer/NN
backup/NN
systems/NNS
./.
Regarding/VBG
your/PRP$
Oct./NNP
4/CD
page-one/NN
article/NN
``/``
Bad/NNP
Blood/NNP
''/''
on/IN
the/DT
generic-drug/JJ
battle/NN
:/:
The/DT
Epilepsy/NNP
Institute/NNP
is/VBZ
not/RB
just/RB
a/DT
patient-advocacy/NN
organization/NN
./.
It/PRP
is/VBZ
primarily/RB
a/DT
certified/JJ
outpatient/NN
treatment/NN
facility/NN
providing/VBG
comprehensive/JJ
services/NNS
to/TO
people/NNS
with/IN
epilepsy/NN
and/CC
their/PRP$
families/NNS
./.
The/DT
institute/NN
's/POS
advocacy/NN
efforts/NNS
are/VBP
based/VBN
on/IN
the/DT
needs/NNS
of/IN
the/DT
population/NN
it/PRP
serves/VBZ
and/CC
represents/VBZ
./.
In/IN
1985/CD
,/,
the/DT
Medical/NNP
Tribune/NNP
reported/VBD
that/IN
a/DT
growing/VBG
number/NN
of/IN
critics/NNS
are/VBP
challenging/VBG
the/DT
FDA/NNP
bioequivalence-therapeutic-equivalence/JJ
equation/NN
./.
``/``
They/PRP
contend/VBP
it/PRP
is/VBZ
based/VBN
on/IN
an/DT
assumption/NN
that/WDT
has/VBZ
not/RB
yet/RB
been/VBN
proven/VBN
in/IN
valid/JJ
tests/NNS
,/,
''/''
the/DT
Tribune/NNP
said/VBD
./.
In/IN
1986/CD
,/,
some/DT
institute/NN
patients/NNS
were/VBD
reporting/VBG
breakthrough/NN
seizures/NNS
when/WRB
they/PRP
were/VBD
switched/VBN
from/IN
a/DT
specific/JJ
brand-name/JJ
medication/NN
to/TO
a/DT
generic/JJ
one/CD
or/CC
from/IN
one/CD
generic/JJ
manufacturer/NN
of/IN
a/DT
specific/JJ
product/NN
to/TO
another/DT
./.
In/IN
addition/NN
,/,
neurologists/NNS
were/VBD
beginning/VBG
to/TO
report/VB
these/DT
observations/NNS
as/RB
well/RB
./.
Call/VB
it/PRP
anecdotal/JJ
if/IN
you/PRP
will/MD
./.
But/CC
no/DT
ethical/JJ
physician/NN
would/MD
switch/VB
patients/NNS
who/WP
were/VBD
doing/VBG
well/RB
on/IN
a/DT
specific/JJ
medication/NN
from/IN
a/DT
specific/JJ
manufacturer/NN
to/TO
prove/VB
a/DT
point/NN
./.
We/PRP
do/VBP
not/RB
depend/VB
on/IN
pharmaceutical/JJ
companies/NNS
for/IN
our/PRP$
support/NN
./.
The/DT
institute/NN
has/VBZ
governmental/JJ
service/NN
contracts/NNS
for/IN
the/DT
provision/NN
of/IN
direct/JJ
patient/NN
services/NNS
;/:
collects/VBZ
patient/JJ
fees/NNS
;/:
receives/VBZ
money/NN
through/IN
contributions/NNS
from/IN
individuals/NNS
,/,
foundations/NNS
and/CC
bequests/NNS
./.
The/DT
funds/NNS
received/VBN
from/IN
pharmaceutical/JJ
firms/NNS
are/VBP
used/VBN
to/TO
offset/VB
physician/NN
symposiums/NNS
,/,
and/CC
these/DT
symposiums/NNS
do/VBP
not/RB
stress/VB
any/DT
particular/JJ
medication/NN
or/CC
manufacturer/NN
./.
The/DT
Epilepsy/NNP
Institute/NNP
's/POS
reporting/NN
of/IN
breakthrough/NN
seizures/NNS
stemmed/VBD
from/IN
concerns/NNS
about/IN
the/DT
people/NNS
we/PRP
treat/VBP
and/CC
care/VBP
about/IN
daily/RB
./.
This/DT
perhaps/RB
was/VBD
perceived/VBN
as/IN
a/DT
``/``
bold/JJ
''/''
stance/NN
,/,
and/CC
thus/RB
suspicious/JJ
./.
But/CC
let/VB
us/PRP
not/RB
confuse/VB
profits/NNS
of/IN
big/JJ
business/NN
masquerading/VBG
as/IN
concerns/NNS
for/IN
people/NNS
's/POS
health/NN
care/NN
or/CC
for/IN
the/DT
cost/NN
./.
For/IN
whom/WP
is/VBZ
the/DT
saving/NN
?/.
Surely/RB
not/RB
to/TO
people/NNS
with/IN
epilepsy/NN
who/WP
depend/VBP
on/IN
the/DT
same/JJ
levels/NNS
of/IN
medication/NN
in/IN
their/PRP$
bloodstream/NN
daily/RB
to/TO
maintain/VB
seizure/NN
control/NN
./.
Reina/NNP
Berner/NNP
Executive/NNP
Director/NNP
Arnold/NNP
M./NNP
Katz/NNP
President/NNP
,/,
Board/NNP
of/IN
Directors/NNPS
The/DT
Epilepsy/NNP
Institute/NNP
New/NNP
York/NNP
Parker/NNP
Hannifin/NNP
Corp./NNP
said/VBD
it/PRP
agreed/VBD
to/TO
sell/VB
its/PRP$
three/CD
automotive/JJ
parts/NNS
divisions/NNS
to/TO
a/DT
management-led/JJ
investor/NN
group/NN
for/IN
$/$
80/CD
million/CD
./.
The/DT
buy-out/JJ
group/NN
is/VBZ
headed/VBN
by/IN
Paul/NNP
R./NNP
Lederer/NNP
,/,
president/NN
of/IN
Parker/NNP
's/POS
automotive/JJ
group/NN
,/,
and/CC
includes/VBZ
several/JJ
other/JJ
executives/NNS
of/IN
the/DT
three/CD
divisions/NNS
./.
The/DT
units/NNS
are/VBP
the/DT
Edelmann/NNP
,/,
Ideal/NNP
and/CC
Plews/NNP
divisions/NNS
./.
Net/JJ
sales/NNS
for/IN
the/DT
units/NNS
for/IN
the/DT
fiscal/JJ
year/NN
ended/VBD
June/NNP
30/CD
were/VBD
$/$
135.6/CD
million/CD
./.
Parker/NNP
officials/NNS
said/VBD
the/DT
company/NN
is/VBZ
selling/VBG
the/DT
units/NNS
to/TO
focus/VB
on/IN
its/PRP$
other/JJ
businesses/NNS
./.
A/DT
volcano/NN
will/MD
erupt/VB
next/JJ
month/NN
on/IN
the/DT
fabled/JJ
Strip/NNP
:/:
a/DT
60-foot/JJ
mountain/NN
spewing/VBG
smoke/NN
and/CC
flame/NN
every/DT
five/CD
minutes/NNS
./.
The/DT
man-made/JJ
inferno/NN
will/MD
tower/VB
over/IN
a/DT
man-made/JJ
lagoon/NN
with/IN
more/RBR
than/IN
four/CD
acres/NNS
of/IN
pools/NNS
,/,
grottoes/NNS
and/CC
waterfalls/NNS
./.
Visitors/NNS
,/,
whisked/VBN
from/IN
the/DT
Strip/NNP
on/IN
a/DT
moving/VBG
walkway/NN
,/,
will/MD
glide/VB
over/IN
a/DT
habitat/NN
for/IN
rare/JJ
white/JJ
tigers/NNS
,/,
which/WDT
will/MD
star/VB
in/IN
performances/NNS
by/IN
the/DT
famed/JJ
illusionist/NN
team/NN
of/IN
Siegfried/NNP
&/CC
Roy/NNP
./.
Nearby/RB
,/,
six/CD
dolphins/NNS
will/MD
frolic/VB
in/IN
a/DT
1.5/CD
million-gallon/JJ
saltwater/NN
aquarium/NN
./.
At/IN
the/DT
core/NN
of/IN
all/PDT
this/DT
stands/VBZ
a/DT
hotel/NN
./.
In/IN
the/DT
lobby/NN
behind/IN
its/PRP$
nine-story/JJ
,/,
orchid-strewn/JJ
atrium/NN
,/,
a/DT
20,000-gallon/JJ
aquarium/NN
will/MD
come/VB
alive/JJ
with/IN
sharks/NNS
,/,
stingrays/NNS
,/,
angelfish/NN
,/,
puffers/NNS
and/CC
other/JJ
creatures/NNS
of/IN
the/DT
deep/JJ
./.
And/CC
oh/UH
,/,
yes/UH
./.
There/EX
's/VBZ
a/DT
casino/NN
,/,
the/DT
financial/JJ
heart/NN
of/IN
it/PRP
all/DT
./.
This/DT
is/VBZ
the/DT
Mirage/NNP
,/,
a/DT
$/$
630/CD
million/CD
island-fantasy/JJ
hotel-casino/NN
now/RB
being/VBG
completed/VBN
for/IN
opening/VBG
in/IN
November/NNP
by/IN
Golden/NNP
Nugget/NNP
Inc/NNP
./.
It/PRP
's/VBZ
the/DT
most/RBS
stunning/JJ
example/NN
of/IN
Las/NNP
Vegas/NNP
's/POS
concerted/JJ
effort/NN
to/TO
transform/VB
itself/PRP
into/IN
a/DT
world-famous/JJ
vacation/NN
resort/NN
for/IN
families/NNS
as/RB
well/RB
as/IN
gamblers/NNS
./.
Las/NNP
Vegas/NNP
has/VBZ
seen/VBN
nothing/NN
quite/RB
like/IN
it/PRP
before/IN
./.
Not/RB
for/IN
15/CD
years/NNS
has/VBZ
a/DT
big/JJ
new/JJ
hotel-casino/NN
opened/VBN
here/RB
./.
Now/RB
the/DT
Mirage/NNP
and/CC
Circus/NNP
Circus/NNP
Enterprises/NNPS
Inc./NNP
's/POS
$/$
290/CD
million/CD
Excalibur/NNP
are/VBP
going/VBG
up/IN
./.
The/DT
Excalibur/NNP
,/,
with/IN
a/DT
castlelike/JJ
hotel/NN
,/,
jousting/VBG
tournaments/NNS
and/CC
other/JJ
Arthurian/JJ
attractions/NNS
,/,
will/MD
be/VB
able/JJ
to/TO
handle/VB
up/IN
to/TO
30,000/CD
visitors/NNS
a/DT
day/NN
when/WRB
it/PRP
opens/VBZ
in/IN
1990/CD
./.
If/IN
MGM/NNP
Grand/NNP
Inc./NNP
proceeds/VBZ
with/IN
its/PRP$
plan/NN
for/IN
an/DT
amusement/NN
park/NN
--/:
a/DT
$/$
700/CD
million/CD
movieland/NN
resort/NN
with/IN
a/DT
working/JJ
studio/NN
,/,
casino/NN
and/CC
5,000-room/JJ
hotel/NN
that/WDT
would/MD
become/VB
Las/NNP
Vegas/NNP
's/POS
biggest/JJS
--/:
the/DT
investment/NN
in/IN
the/DT
three/CD
properties/NNS
will/MD
total/VB
some/DT
$/$
1.6/CD
billion/CD
./.
MGM/NNP
Grand/NNP
has/VBZ
agreed/VBN
to/TO
buy/VB
a/DT
117-acre/JJ
site/NN
for/IN
the/DT
resort/NN
for/IN
$/$
93/CD
million/CD
in/IN
cash/NN
plus/CC
stock/NN
currently/RB
valued/VBN
at/IN
nearly/RB
$/$
30/CD
million/CD
./.
Smaller/JJR
projects/NNS
swell/VBP
the/DT
figure/NN
to/TO
at/IN
least/JJS
$/$
2.5/CD
billion/CD
./.
Still/RB
other/JJ
projects/NNS
that/WDT
have/VBP
been/VBN
announced/VBN
but/CC
not/RB
yet/RB
started/VBN
could/MD
put/VB
expenditures/NNS
above/IN
$/$
3/CD
billion/CD
over/IN
the/DT
next/JJ
few/JJ
years/NNS
./.
Stephen/NNP
A./NNP
Wynn/NNP
,/,
who/WP
owns/VBZ
29.4/CD
%/NN
of/IN
Golden/NNP
Nugget/NNP
's/POS
shares/NNS
,/,
says/VBZ
the/DT
Mirage/NNP
and/CC
other/JJ
projects/NNS
will/MD
help/VB
Las/NNP
Vegas/NNP
attract/VB
a/DT
whole/JJ
new/JJ
generation/NN
of/IN
visitors/NNS
./.
``/``
If/IN
you/PRP
create/VBP
a/DT
wonderment/NN
,/,
if/IN
you/PRP
create/VBP
something/NN
so/RB
exciting/JJ
that/IN
the/DT
public/JJ
dreams/VBZ
of/IN
being/VBG
part/NN
of/IN
it/PRP
,/,
then/RB
they/PRP
'll/MD
come/VB
,/,
''/''
he/PRP
says/VBZ
./.
The/DT
projects/NNS
already/RB
under/IN
construction/NN
will/MD
increase/VB
Las/NNP
Vegas/NNP
's/POS
supply/NN
of/IN
hotel/NN
rooms/NNS
by/IN
11,795/CD
,/,
or/CC
nearly/RB
20/CD
%/NN
,/,
to/TO
75,500/CD
./.
By/IN
a/DT
rule/NN
of/IN
thumb/NN
of/IN
1.5/CD
new/JJ
jobs/NNS
for/IN
each/DT
new/JJ
hotel/NN
room/NN
,/,
Clark/NNP
County/NNP
will/MD
have/VB
nearly/RB
18,000/CD
new/JJ
jobs/NNS
./.
The/DT
county/NN
at/IN
the/DT
end/NN
of/IN
1988/CD
had/VBD
307,000/CD
jobs/NNS
,/,
95,400/CD
of/IN
them/PRP
in/IN
the/DT
tourist/NN
industry/NN
./.
Projects/NNS
in/IN
the/DT
talking/VBG
or/CC
blueprint/NN
stage/NN
would/MD
add/VB
a/DT
further/JJR
48,000/CD
rooms/NNS
./.
Hotel-casino/NN
operators/NNS
play/VBP
down/IN
the/DT
possibility/NN
of/IN
a/DT
labor/NN
shortage/NN
./.
After/IN
all/DT
,/,
40,000/CD
newcomers/NNS
a/DT
year/NN
are/VBP
settling/VBG
in/IN
the/DT
Las/NNP
Vegas/NNP
Valley/NNP
./.
But/CC
Nevada/NNP
state/NN
labor/NN
economists/NNS
think/VBP
a/DT
shortage/NN
is/VBZ
probable/JJ
./.
Nobody/NN
yet/RB
seems/VBZ
to/TO
have/VB
calculated/VBN
the/DT
total/JJ
number/NN
of/IN
slot/NN
machines/NNS
,/,
crap/NN
tables/NNS
or/CC
roulette/NN
wheels/NNS
Las/NNP
Vegas/NNP
will/MD
add/VB
to/TO
the/DT
enormous/JJ
store/NN
that/IN
Lady/NNP
Luck/NNP
already/RB
guards/VBZ
here/RB
,/,
much/RB
less/JJR
the/DT
ultimate/JJ
impact/NN
of/IN
the/DT
growth/NN
on/IN
schools/NNS
and/CC
municipal/JJ
services/NNS
./.
``/``
Traffic/NN
is/VBZ
certainly/RB
a/DT
concern/NN
,/,
as/IN
is/VBZ
pollution/NN
,/,
water/NN
and/CC
an/DT
adequate/JJ
labor/NN
market/NN
,/,
''/''
says/VBZ
Frank/NNP
Sain/NNP
,/,
executive/JJ
director/NN
of/IN
the/DT
Las/NNP
Vegas/NNP
Convention/NNP
and/CC
Visitors/NNPS
Bureau/NNP
./.
City/NN
fathers/NNS
have/VBP
managed/VBN
to/TO
push/VB
through/IN
projects/NNS
that/WDT
are/VBP
crucial/JJ
for/IN
tourist/NN
growth/NN
,/,
such/JJ
as/IN
the/DT
expansion/NN
of/IN
McCarran/NNP
International/NNP
Airport/NNP
to/TO
accommodate/VB
the/DT
44/CD
%/NN
of/IN
Las/NNP
Vegas/NNP
tourists/NNS
who/WP
fly/VBP
here/RB
./.
This/DT
year/NN
,/,
by/IN
one/CD
means/NNS
of/IN
transport/NN
or/CC
another/DT
,/,
more/RBR
than/IN
18/CD
million/CD
people/NNS
will/MD
visit/VB
the/DT
city/NN
./.
The/DT
expansion/NN
will/MD
set/VB
off/IN
a/DT
marketing/NN
war/NN
among/IN
the/DT
big/JJ
hotel-casinos/NNS
./.
Las/NNP
Vegas/NNP
promises/VBZ
,/,
or/CC
threatens/VBZ
,/,
to/TO
become/VB
a/DT
giant/JJ
carnival/NN
,/,
with/IN
rooms/NNS
to/TO
be/VB
had/VBN
for/IN
$/$
45/CD
a/DT
day/NN
or/CC
less/JJR
,/,
for/IN
visitors/NNS
uninspired/JJ
solely/RB
by/IN
gambling/VBG
./.
Amid/IN
a/DT
riot/NN
of/IN
jousting/VBG
knights/NNS
,/,
circus/NN
clowns/NNS
,/,
gold-leaf/JJ
centurions/NNS
and/CC
creatures/NNS
of/IN
the/DT
wild/JJ
,/,
lesser/JJR
competitors/NNS
will/MD
fall/VB
./.
Caesars/NNP
World/NNP
Inc./NNP
plans/VBZ
to/TO
defend/VB
its/PRP$
august/JJ
reputation/NN
by/IN
sinking/VBG
$/$
190/CD
million/CD
into/IN
its/PRP$
opulent/JJ
Caesars/NNP
Palace/NNP
,/,
next/JJ
door/NN
to/TO
the/DT
new/JJ
Mirage/NNP
,/,
and/CC
adding/VBG
a/DT
$/$
100/CD
million/CD
shopping/NN
area/NN
reminiscent/NN
of/IN
Rodeo/NNP
Drive/NNP
./.
The/DT
Palace/NNP
,/,
with/IN
its/PRP$
marble/NN
fountains/NNS
and/CC
toga/NN
parties/NNS
for/IN
high/JJ
rollers/NNS
,/,
is/VBZ
already/RB
well-known/JJ
for/IN
its/PRP$
Caesarean/JJ
theme/NN
./.
The/DT
Flamingo/NNP
Hilton/NNP
,/,
Imperial/NNP
Palace/NNP
,/,
Frontier/NNP
and/CC
others/NNS
are/VBP
pouring/VBG
millions/NNS
of/IN
dollars/NNS
into/IN
facelifts/NNS
,/,
new/JJ
room/NN
towers/NNS
and/CC
casino/NN
floor/NN
space/NN
just/RB
to/TO
keep/VB
up/IN
./.
Where/WRB
's/VBZ
this/DT
huge/JJ
amount/NN
of/IN
investment/NN
capital/NN
coming/VBG
from/IN
?/.
Golden/NNP
Nugget/NNP
,/,
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
's/POS
first/JJ
casino/NN
client/NN
,/,
has/VBZ
borrowed/VBN
on/IN
more/RBR
than/IN
$/$
600/CD
million/CD
worth/NN
of/IN
mortgage/NN
notes/NNS
,/,
mostly/RB
sold/VBN
to/TO
private/JJ
investors/NNS
by/IN
Drexel/NNP
,/,
to/TO
build/VB
the/DT
Mirage/NNP
./.
Other/JJ
casino/NN
owners/NNS
,/,
Circus/NNP
Circus/NNP
among/IN
them/PRP
,/,
are/VBP
financing/VBG
their/PRP$
expansion/NN
with/IN
their/PRP$
own/JJ
cash/NN
and/CC
revolving/VBG
credit/NN
lines/NNS
from/IN
local/JJ
lenders/NNS
such/JJ
as/IN
First/NNP
Interstate/NNP
Bank/NNP
of/IN
Nevada/NNP
./.
Will/MD
the/DT
investments/NNS
pay/VB
off/IN
?/.
The/DT
growth/NN
of/IN
Las/NNP
Vegas/NNP
tourism/NN
in/IN
recent/JJ
years/NNS
persuades/VBZ
lenders/NNS
that/IN
they/PRP
will/MD
./.
Casino/NN
revenues/NNS
and/CC
hotel/NN
occupancy/NN
rates/NNS
are/VBP
high/JJ
./.
Last/JJ
year/NN
,/,
the/DT
tourists/NNS
left/VBD
$/$
3/CD
billion/CD
with/IN
the/DT
area/NN
's/POS
casinos/NNS
,/,
nearly/RB
10/CD
%/NN
more/JJR
than/IN
in/IN
1987/CD
./.
The/DT
people/NNS
with/IN
a/DT
stake/NN
in/IN
Nevada/NNP
's/POS
gambling/VBG
industry/NN
believe/VBP
that/IN
they/PRP
have/VBP
barely/RB
tapped/VBN
the/DT
potentially/RB
huge/JJ
family/NN
trade/NN
./.
``/``
If/IN
you/PRP
build/VBP
a/DT
better/JJR
mousetrap/NN
,/,
it/PRP
will/MD
catch/VB
more/JJR
mice/NNS
,/,
''/''
says/VBZ
Fred/NNP
Benninger/NNP
,/,
chairman/NN
of/IN
MGM/NNP
Grand/NNP
./.
Ellen/NNP
Cokely/NNP
,/,
a/DT
tourist/NN
from/IN
Alton/NNP
,/,
Ill./NNP
,/,
seems/VBZ
inclined/VBN
to/TO
agree/VB
./.
``/``
I/PRP
'd/MD
love/VB
it/PRP
if/IN
my/PRP$
daughter/NN
had/VBD
something/NN
else/RB
to/TO
do/VB
here/RB
,/,
''/''
says/VBZ
Ms./NNP
Cokely/NNP
,/,
watching/VBG
seven-year-old/JJ
Kristin/NNP
on/IN
the/DT
water/NN
slide/NN
at/IN
the/DT
Strip/NNP
's/POS
Wet/NNP
'n'/CC
Wild/NNP
water/NN
park/NN
./.
``/``
Two/CD
generations/NNS
ago/IN
,/,
Dad/NNP
came/VBD
to/TO
Las/NNP
Vegas/NNP
by/IN
himself/PRP
for/IN
a/DT
little/JJ
diversion/NN
,/,
''/''
says/VBZ
Van/NNP
Heffner/NNP
,/,
executive/JJ
vice/NN
president/NN
of/IN
the/DT
Nevada/NNP
Hotel/NNP
and/CC
Motel/NNP
Association/NNP
./.
``/``
One/CD
generation/NN
ago/IN
,/,
Mom/NN
joined/VBD
Dad/NNP
./.
Now/RB
,/,
in/IN
the/DT
'90s/NNS
,/,
we/PRP
're/VBP
headed/VBN
toward/IN
a/DT
total/JJ
resort/NN
environment/NN
./.
''/''
Only/RB
a/DT
decade/NN
or/CC
so/RB
ago/IN
,/,
casino/NN
managers/NNS
balked/VBD
at/IN
in-room/JJ
TV/NN
sets/NNS
and/CC
other/JJ
fripperies/NNS
that/WDT
distracted/VBD
from/IN
gambling/VBG
./.
Casinos/NNS
today/NN
offer/VBP
bowling/VBG
alleys/NNS
,/,
water/NN
parks/NNS
,/,
golf/NN
courses/NNS
,/,
tennis/NN
courts/NNS
,/,
lush/JJ
swimming/NN
pools/NNS
and/CC
other/JJ
diversions/NNS
,/,
and/CC
more/RBR
such/JJ
facilities/NNS
are/VBP
being/VBG
designed/VBN
./.
Despite/IN
the/DT
new/JJ
emphasis/NN
on/IN
the/DT
family/NN
trade/NN
,/,
however/RB
,/,
tourists/NNS
in/IN
search/NN
of/IN
naughtier/JJR
fun/NN
than/IN
gambling/VBG
seem/VBP
certain/JJ
to/TO
find/VB
it/PRP
,/,
with/IN
Las/NNP
Vegas/NNP
call/JJ
girls/NNS
remaining/VBG
on/IN
the/DT
scene/NN
./.
A/DT
serious/JJ
economic/JJ
downturn/NN
,/,
pessimists/NNS
observe/VBP
,/,
could/MD
hurt/VB
the/DT
expansionists/NNS
./.
For/IN
now/RB
,/,
however/RB
,/,
the/DT
naysayers/NNS
'/POS
voices/NNS
are/VBP
drowned/VBN
by/IN
the/DT
roar/NN
of/IN
cement/NN
mixers/NNS
and/CC
the/DT
clanging/NN
of/IN
construction/NN
cranes/NNS
along/IN
the/DT
Strip/NNP
./.
This/DT
is/VBZ
no/DT
place/NN
for/IN
pedestrians/NNS
,/,
but/CC
at/IN
7:30/CD
on/IN
a/DT
recent/JJ
morning/NN
,/,
when/WRB
construction/NN
choked/VBD
traffic/NN
at/IN
the/DT
famous/JJ
Four/CD
Corners/NNPS
intersection/NN
to/TO
one/CD
lane/NN
,/,
a/DT
taxi/NN
passenger/NN
found/VBD
it/PRP
faster/JJR
to/TO
abandon/VB
the/DT
cab/NN
and/CC
walk/NN
to/TO
her/PRP$
destination/NN
./.
The/DT
ferocious/JJ
competition/NN
probably/RB
will/MD
drive/VB
some/DT
poorly/RB
managed/VBN
properties/NNS
into/IN
bankruptcy/NN
or/CC
new/JJ
ownership/NN
./.
It/PRP
has/VBZ
happened/VBN
before/IN
./.
The/DT
Dunes/NNPS
,/,
the/DT
Aladdin/NNP
and/CC
the/DT
Riviera/NNP
were/VBD
all/DT
acquired/VBN
by/IN
the/DT
present/JJ
owners/NNS
from/IN
bankruptcy/NN
proceedings/NNS
spawned/VBN
by/IN
the/DT
last/JJ
recession/NN
,/,
in/IN
the/DT
early/JJ
1980s/CD
./.
Yet/RB
that/DT
has/VBZ
n't/RB
discouraged/VBN
investors/NNS
./.
Some/DT
have/VBP
bought/VBN
big/JJ
chunks/NNS
of/IN
Strip/NNP
property/NN
for/IN
what/WP
may/MD
turn/VB
into/IN
another/DT
wave/NN
of/IN
building/VBG
./.
Atlantic/NNP
City/NNP
casino/NN
owner/NN
Donald/NNP
Trump/NNP
is/VBZ
scouting/VBG
the/DT
Las/NNP
Vegas/NNP
market/NN
with/IN
an/DT
eye/NN
toward/IN
building/VBG
an/DT
appropriately/RB
spectacular/JJ
place/NN
./.
Even/RB
before/IN
the/DT
huge/JJ
new/JJ
projects/NNS
began/VBD
,/,
the/DT
Strip/NNP
's/POS
recent/JJ
expansion/NN
squeezed/VBD
smaller/JJR
competitors/NNS
./.
Many/JJ
blue-collar/JJ
customers/NNS
of/IN
downtown/NN
's/POS
no-frills/JJ
gambling/VBG
spots/NNS
have/VBP
been/VBN
lured/VBN
to/TO
the/DT
Strip/NNP
or/CC
to/TO
Laughlin/NNP
,/,
Nev./NNP
,/,
a/DT
Colorado/NNP
River/NNP
town/NN
catering/NN
to/TO
snowbirds/NNS
and/CC
the/DT
recreational-vehicle/NN
crowd/NN
./.
Hotel/NN
expansion/NN
and/CC
an/DT
influx/NN
of/IN
more-discriminating/JJ
tourists/NNS
have/VBP
hurt/VBN
motels/NNS
./.
Since/IN
1979/CD
,/,
the/DT
number/NN
of/IN
motel/NN
rooms/NNS
has/VBZ
fallen/VBN
by/IN
17,000/CD
./.
Many/JJ
people/NNS
here/RB
expect/VBP
a/DT
room-rate/JJ
war/NN
as/IN
the/DT
new/JJ
projects/NNS
open/VBP
./.
``/``
There/EX
's/VBZ
probably/RB
going/VBG
to/TO
be/VB
some/DT
pressure/NN
on/IN
occupancy/NN
and/CC
room/NN
rates/NNS
over/IN
the/DT
next/JJ
year/NN
,/,
but/CC
after/IN
that/IN
you/PRP
should/MD
see/VB
the/DT
market/NN
return/VB
to/TO
80%-plus/JJ
occupancy/NN
and/CC
regular/JJ
rates/NNS
,/,
''/''
says/VBZ
Paul/NNP
Rubeli/NNP
,/,
casino/NN
executive/NN
at/IN
Ramada/NNP
Inc./NNP
,/,
which/WDT
runs/VBZ
the/DT
Tropicana/NNP
./.
Skeptics/NNS
wonder/VBP
whether/IN
mega-resorts/NNS
such/JJ
as/IN
the/DT
Mirage/NNP
will/MD
be/VB
able/JJ
to/TO
squeeze/VB
a/DT
profit/NN
from/IN
their/PRP$
cash/NN
flow/NN
./.
The/DT
Mirage/NNP
will/MD
cost/VB
at/IN
least/JJS
$/$
1/CD
million/CD
a/DT
day/NN
to/TO
operate/VB
./.
Mr./NNP
Wynn/NNP
seems/VBZ
confident/JJ
that/IN
it/PRP
will/MD
produce/VB
a/DT
healthy/JJ
profit/NN
,/,
but/CC
some/DT
securities/NNS
analysts/NNS
doubt/VBP
it/PRP
./.
Competitors/NNS
and/CC
analysts/NNS
say/VBP
that/IN
among/IN
large/JJ
existing/VBG
properties/NNS
Bally/NNP
Manufacturing/NNP
Corp./NNP
's/POS
Bally/NNP
Grand/NNP
hotel-casino/NN
probably/RB
will/MD
be/VB
hardest/RBS
hit/VBN
among/IN
major/JJ
properties/NNS
./.
Bally/NNP
officials/NNS
decline/VBP
to/TO
discuss/VB
the/DT
situation/NN
./.
Bally/NNP
bought/VBD
the/DT
former/JJ
MGM/NNP
Grand/NNP
hotel-casino/NN
from/IN
Kirk/NNP
Kerkorian/NNP
four/CD
years/NNS
ago/IN
./.
Only/RB
now/RB
is/VBZ
it/PRP
undergoing/VBG
a/DT
badly/RB
needed/VBN
facelift/NN
./.
Its/PRP$
parking/NN
lot/NN
is/VBZ
inconvenient/JJ
,/,
the/DT
MGM/NNP
lion's-head/NN
logo/NN
still/RB
appears/VBZ
in/IN
places/NNS
,/,
and/CC
customers/NNS
still/RB
call/VBP
it/PRP
the/DT
Grand/NNP
,/,
rather/RB
than/IN
the/DT
Bally/NNP
Grand/NNP
./.
It/PRP
has/VBZ
a/DT
``/``
great/JJ
location/NN
,/,
but/CC
they/PRP
're/VBP
going/VBG
to/TO
have/VB
some/DT
real/JJ
problems/NNS
when/WRB
everyone/NN
around/IN
them/PRP
opens/VBZ
,/,
''/''
says/VBZ
Daniel/NNP
Lee/NNP
,/,
a/DT
Drexel/NNP
analyst/NN
./.
Older/JJR
properties/NNS
that/WDT
still/RB
have/VBP
a/DT
1950s/CD
image/NN
are/VBP
also/RB
vulnerable/JJ
./.
Any/DT
hotel-casino/NN
without/IN
a/DT
strong/JJ
identity/NN
will/MD
get/VB
whacked/VBN
by/IN
the/DT
new/JJ
competition/NN
,/,
says/VBZ
Glenn/NNP
Schaeffer/NNP
,/,
senior/JJ
vice/NN
president/NN
of/IN
Circus/NNP
Circus/NNP
./.
``/``
If/IN
you/PRP
do/VBP
n't/RB
know/VB
what/WP
you/PRP
are/VBP
,/,
bigger/JJR
wo/MD
n't/RB
make/VB
you/PRP
better/JJR
,/,
''/''
he/PRP
says/VBZ
./.
``/``
But/CC
it/PRP
'll/MD
sure/RB
make/VB
you/PRP
poorer/JJR
./.
''/''
Circus/NNP
Circus/NNP
's/POS
flagship/NN
casino/NN
has/VBZ
become/VBN
the/DT
envy/NN
of/IN
competitors/NNS
for/IN
its/PRP$
ability/NN
to/TO
vacuum/VB
cash/NN
from/IN
the/DT
pockets/NNS
of/IN
vacationing/VBG
families/NNS
./.
The/DT
Circus/NNP
Circus/NNP
lures/VBZ
them/PRP
with/IN
low/JJ
room/NN
rates/NNS
,/,
inexpensive/JJ
buffets/NNS
and/CC
entertainment/NN
for/IN
children/NNS
at/IN
no/DT
extra/JJ
charge/NN
./.
The/DT
company/NN
's/POS
Excalibur/NNP
will/MD
also/RB
appeal/VB
to/TO
families/NNS
,/,
of/IN
course/NN
./.
Its/PRP$
castle/NN
,/,
Mr./NNP
Schaeffer/NNP
says/VBZ
,/,
will/MD
be/VB
``/``
the/DT
most/RBS
compelling/JJ
piece/NN
of/IN
folk/NN
architecture/NN
ever/RB
built/VBN
./.
''/''
Some/DT
casino/NN
owners/NNS
have/VBP
resisted/VBN
the/DT
temptation/NN
to/TO
add/VB
rooms/NNS
./.
Instead/RB
,/,
they/PRP
are/VBP
spending/VBG
to/TO
reinforce/VB
the/DT
identity/NN
that/IN
they/PRP
believe/VBP
attracts/VBZ
their/PRP$
customers/NNS
./.
``/``
More/JJR
rooms/NNS
are/VBP
n't/RB
the/DT
answer/NN
for/IN
us/PRP
,/,
''/''
says/VBZ
Caesars/NNP
World/NNP
chairman/NN
Henry/NNP
Gluck/NNP
./.
While/IN
his/PRP$
company/NN
's/POS
hotel/NN
is/VBZ
building/VBG
a/DT
retail/JJ
complex/NN
in/IN
Beverly/NNP
Hills/NNP
style/NN
and/CC
redoing/VBG
existing/VBG
rooms/NNS
,/,
it/PRP
has/VBZ
decreased/VBN
the/DT
number/NN
of/IN
its/PRP$
rooms/NNS
./.
Some/DT
have/VBP
been/VBN
combined/VBN
into/IN
suites/NNS
for/IN
the/DT
high/JJ
rollers/NNS
./.
Caesars/NNP
has/VBZ
made/VBN
a/DT
specialty/NN
of/IN
catering/NN
to/TO
high/JJ
rollers/NNS
from/IN
abroad/RB
,/,
who/WP
are/VBP
also/RB
being/VBG
aggressively/RB
courted/VBN
by/IN
the/DT
Mirage/NNP
,/,
the/DT
Las/NNP
Vegas/NNP
Hilton/NNP
and/CC
others/NNS
./.
Other/JJ
,/,
smaller/JJR
concerns/NNS
are/VBP
also/RB
pursuing/VBG
market/NN
niches/NNS
--/:
Hawaiian/JJ
tourists/NNS
,/,
for/IN
example/NN
,/,
or/CC
the/DT
local/JJ
trade/NN
./.
``/``
There/EX
's/VBZ
still/RB
room/NN
for/IN
boutique/NN
properties/NNS
,/,
''/''
says/VBZ
James/NNP
Barrett/NNP
,/,
president/NN
of/IN
MarCor/NNP
Resorts/NNPS
Inc/NNP
./.
Off/IN
the/DT
Strip/NNP
,/,
MarCor/NNP
is/VBZ
building/VBG
the/DT
Rio/NNP
,/,
a/DT
hotel-casino/NN
with/IN
a/DT
Brazilian/JJ
theme/NN
and/CC
only/RB
430/CD
rooms/NNS
--/:
all/DT
of/IN
them/PRP
suites/NNS
./.
Despite/IN
the/DT
proliferation/NN
of/IN
tourist/NN
distractions/NNS
,/,
Las/NNP
Vegans/NNPS
have/VBP
n't/RB
forgot/VBN
that/IN
gambling/NN
is/VBZ
still/RB
what/WP
the/DT
town/NN
is/VBZ
all/DT
about/IN
./.
``/``
The/DT
days/NNS
when/WRB
when/WRB
the/DT
thrust/NN
of/IN
casinos/NNS
was/VBD
all/DT
high/JJ
rollers/NNS
,/,
with/IN
no/DT
windows/NNS
and/CC
clocks/NNS
and/CC
lots/NNS
of/IN
red/JJ
and/CC
black/JJ
decor/NN
,/,
are/VBP
gone/VBN
,/,
''/''
Mr./NNP
Sain/NNP
of/IN
the/DT
visitors/NNS
'/POS
bureau/NN
says/VBZ
./.
``/``
But/CC
93/CD
%/NN
of/IN
tourists/NNS
still/RB
come/VBN
for/IN
gambling/NN
./.
We/PRP
ca/MD
n't/RB
lose/VB
sight/NN
of/IN
that/DT
./.
''/''
NORTH/NNP
SIDE/NNP
SAVINGS/NNP
BANK/NNP
directors/NNS
declared/VBD
an/DT
initial/JJ
dividend/NN
of/IN
10/CD
cents/NNS
a/DT
share/NN
,/,
payable/JJ
Dec./NNP
5/CD
to/TO
stock/NN
of/IN
record/NN
Nov./NNP
21/CD
./.
The/DT
Floral/NNP
Park/NNP
,/,
N.Y./NNP
,/,
thrift/NN
has/VBZ
a/DT
strong/JJ
capital-to-assets/NNS
ratio/NN
,/,
said/VBD
Vice/NNP
President/NNP
Michael/NNP
D.N./NNP
Confer/NNP
./.
At/IN
Sept./NNP
30/CD
,/,
the/DT
thrift/NN
,/,
which/WDT
converted/VBD
to/TO
a/DT
stock/NN
form/NN
of/IN
ownership/NN
from/IN
a/DT
mutual/JJ
form/NN
in/IN
April/NNP
1986/CD
,/,
had/VBD
more/RBR
than/IN
four/CD
million/CD
shares/NNS
outstanding/JJ
./.
ARTICLE/NN
I/NN
,/,
SECTION/NN
7/CD
,/,
CLAUSE/NN
2/CD
:/:
Every/DT
Bill/NN
which/WDT
shall/MD
have/VB
passed/VBN
the/DT
House/NNP
of/IN
Representatives/NNPS
and/CC
the/DT
Senate/NNP
,/,
shall/MD
,/,
before/IN
it/PRP
becomes/VBZ
a/DT
Law/NNP
,/,
be/VB
presented/VBN
to/TO
the/DT
President/NNP
of/IN
the/DT
United/NNP
States/NNPS
;/:
If/IN
he/PRP
approve/VB
he/PRP
shall/MD
sign/VB
it/PRP
,/,
but/CC
if/IN
not/RB
he/PRP
shall/MD
return/VB
it/PRP
,/,
with/IN
his/PRP$
Objections/NNS
to/TO
that/DT
House/NNP
in/IN
which/WDT
it/PRP
shall/MD
have/VB
originated/VBN
,/,
who/WP
shall/MD
enter/VB
the/DT
Objections/NNS
at/IN
large/JJ
on/IN
their/PRP$
Journal/NN
,/,
and/CC
proceed/VB
to/TO
reconsider/VB
it/PRP
./.
If/IN
after/IN
such/JJ
Reconsideration/NN
two/CD
thirds/NNS
of/IN
that/IN
House/NNP
shall/MD
agree/VB
to/TO
pass/VB
the/DT
Bill/NN
,/,
it/PRP
shall/MD
be/VB
sent/VBN
,/,
together/RB
with/IN
the/DT
Objections/NNS
,/,
to/TO
the/DT
other/JJ
House/NNP
,/,
by/IN
which/WDT
it/PRP
shall/MD
likewise/RB
be/VB
reconsidered/VBN
,/,
and/CC
if/IN
approved/VBN
by/IN
two/CD
thirds/NNS
of/IN
that/DT
House/NNP
,/,
it/PRP
shall/MD
become/VB
a/DT
Law/NN
.../:
./.
ARTICLE/NN
I/NN
,/,
SECTION/NN
7/CD
,/,
CLAUSE/NN
3/CD
:/:
Every/DT
Order/NN
,/,
Resolution/NN
,/,
or/CC
Vote/NN
to/TO
which/WDT
the/DT
Concurrence/NN
of/IN
the/DT
Senate/NNP
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House/NNP
of/IN
Representatives/NNPS
may/MD
be/VB
necessary/JJ
(/(
except/IN
on/IN
a/DT
question/NN
of/IN
Adjournment/NN
the/DT
President/NNP
of/IN
the/DT
United/NNP
States/NNPS
;/:
and/CC
before/IN
the/DT
Same/JJ
shall/MD
take/VB
Effect/NN
,/,
shall/MD
be/VB
approved/VBN
by/IN
him/PRP
,/,
or/CC
being/VBG
disapproved/VBN
by/IN
him/PRP
,/,
shall/MD
be/VB
repassed/VBN
by/IN
two/CD
thirds/NNS
of/IN
the/DT
Senate/NNP
and/CC
House/NNP
of/IN
Representatives/NNPS
,/,
according/VBG
to/TO
the/DT
Rules/NNPS
and/CC
Limitations/NNPS
prescribed/VBN
in/IN
the/DT
Case/NN
of/IN
a/DT
Bill/NN
./.
President/NNP
Bush/NNP
told/VBD
reporters/NNS
a/DT
few/JJ
months/NNS
ago/IN
that/IN
he/PRP
was/VBD
looking/VBG
for/IN
the/DT
right/JJ
test/NN
case/NN
to/TO
see/VB
whether/IN
he/PRP
already/RB
has/VBZ
the/DT
line-item/JJ
veto/NN
./.
Vice/NNP
President/NNP
Quayle/NNP
and/CC
Budget/NNP
Director/NNP
Darman/NNP
said/VBD
recently/RB
they/PRP
've/VBP
joined/VBN
the/DT
search/NN
./.
On/IN
Tuesday/NNP
,/,
the/DT
subject/NN
came/VBD
up/IN
again/RB
when/WRB
Marlin/NNP
Fitzwater/NNP
explained/VBD
the/DT
constitutional/JJ
argument/NN
based/VBN
on/IN
the/DT
provisions/NNS
above/IN
to/TO
the/DT
White/NNP
House/NNP
press/NN
corps/NN
./.
President/NNP
Bush/NNP
does/VBZ
n't/RB
have/VB
any/DT
provision/NN
in/IN
mind/NN
,/,
but/CC
line-item-veto/JJ
bait/NN
will/MD
be/VB
like/IN
earthworms/NNS
at/IN
midnight/NN
in/IN
the/DT
coming/VBG
Continuing/NNP
Resolution/NNP
./.
The/DT
harder/JJR
question/NN
is/VBZ
whether/IN
anyone/NN
yet/RB
understands/VBZ
that/IN
Mr./NNP
Bush/NNP
's/POS
fight/NN
for/IN
his/PRP$
constitutional/JJ
prerogatives/NNS
is/VBZ
about/IN
politics/NNS
as/RB
much/RB
as/IN
it/PRP
is/VBZ
about/IN
law/NN
./.
We/PRP
have/VBP
been/VBN
persuaded/VBN
by/IN
the/DT
constitutional/JJ
argument/NN
for/IN
the/DT
inherent/JJ
line-item/JJ
veto/NN
since/IN
1987/CD
,/,
when/WRB
lawyer/NN
Stephen/NNP
Glazier/NNP
first/RB
made/VBD
the/DT
case/NN
on/IN
this/DT
page/NN
./.
The/DT
1974/CD
budget/NN
``/``
reform/NN
,/,
''/''
passed/VBN
over/IN
President/NNP
Nixon/NNP
's/POS
veto/NN
,/,
took/VBD
away/RB
the/DT
presidential/JJ
impoundment/NN
power/NN
,/,
thereby/RB
introducing/VBG
monstrous/JJ
CRs/NNS
and/CC
eviscerating/VBG
the/DT
presidential/JJ
veto/NN
./.
Mr./NNP
Glazier/NNP
discovered/VBD
that/IN
the/DT
Founders/NNS
had/VBD
worried/VBN
that/IN
Congress/NNP
might/MD
take/VB
the/DT
President/NNP
out/IN
of/IN
the/DT
loop/NN
./.
Article/NN
I/NN
,/,
Section/NN
7/CD
,/,
Clause/NN
3/CD
says/VBZ
that/IN
whether/IN
it/PRP
's/VBZ
called/VBN
an/DT
``/``
order/NN
,/,
resolution/NN
or/CC
vote/NN
''/''
or/CC
anything/NN
else/RB
,/,
Presidents/NNS
must/MD
have/VB
the/DT
chance/NN
to/TO
veto/VB
./.
Labeling/VBG
an/DT
omnibus/JJ
budget/NN
a/DT
``/``
bill/NN
''/''
ca/MD
n't/RB
deprive/VB
the/DT
President/NNP
of/IN
his/PRP$
power/NN
to/TO
veto/NN
items/NNS
./.
Finding/VBG
a/DT
test/NN
case/NN
should/MD
n't/RB
be/VB
hard/JJ
,/,
but/CC
there/EX
is/VBZ
something/NN
to/TO
be/VB
said/VBD
for/IN
picking/VBG
the/DT
best/JJS
one/CD
possible/JJ
./.
The/DT
White/NNP
House/NNP
had/VBD
the/DT
perfect/JJ
case/NN
,/,
but/CC
Congress/NNP
blinked/VBD
before/IN
it/PRP
could/MD
go/VB
to/TO
court/NN
./.
After/IN
the/DT
HUD/NNP
and/CC
S&L/NNP
stories/NNS
broke/VBD
,/,
some/DT
Congressmen/NNS
began/VBD
to/TO
worry/VB
that/DT
their/PRP$
influence/NN
peddling/VBG
at/IN
executive-branch/JJ
and/CC
independent/JJ
agencies/NNS
might/MD
some/DT
day/NN
get/VB
them/PRP
in/IN
trouble/NN
./.
They/PRP
worried/VBD
about/IN
an/DT
Interior/NNP
Department/NNP
directive/NN
to/TO
log/VB
all/DT
communications/NNS
with/IN
Members/NNS
or/CC
their/PRP$
staffs/NNS
./.
Congress/NNP
inserted/VBD
the/DT
following/NN
into/IN
the/DT
Interior/NNP
appropriation/NN
:/:
``/``
None/NN
of/IN
the/DT
funds/NNS
available/JJ
under/IN
this/DT
title/NN
may/MD
be/VB
used/VBN
to/TO
prepare/VB
reports/NNS
on/IN
contacts/NNS
between/IN
employees/NNS
of/IN
the/DT
Dept./NNP
of/IN
the/DT
Interior/NNP
and/CC
Members/NNS
and/CC
committees/NNS
of/IN
Congress/NNP
and/CC
their/PRP$
staff/NN
./.
''/''
The/DT
White/NNP
House/NNP
warned/VBD
that/IN
this/DT
would/MD
be/VB
an/DT
unconstitutional/JJ
usurpation/NN
of/IN
its/PRP$
power/NN
./.
When/WRB
it/PRP
threatened/VBD
to/TO
use/VB
this/DT
provision/NN
as/IN
the/DT
test/NN
for/IN
a/DT
line-item/JJ
veto/NN
,/,
Congress/NNP
caved/VBD
./.
The/DT
fear/NN
Congress/NNP
has/VBZ
of/IN
any/DT
line-item-veto/JJ
test/NN
led/VBD
Members/NNS
to/TO
add/VB
the/DT
single/JJ
most/RBS
contorted/JJ
and/CC
ridiculous/JJ
provision/NN
this/DT
year/NN
,/,
``/``
This/DT
section/NN
shall/MD
be/VB
effective/JJ
only/RB
on/IN
Oct./NNP
1/CD
,/,
1989/CD
./.
''/''
This/DT
means/VBZ
Interior/JJ
contacts/NNS
can/MD
not/RB
be/VB
logged/VBN
only/RB
on/IN
one/CD
day/NN
--/:
a/DT
Sunday/NNP
that/WDT
had/VBD
already/RB
passed/VBN
./.
If/IN
the/DT
White/NNP
House/NNP
is/VBZ
looking/VBG
for/IN
another/DT
unconstitutional/JJ
bill/NN
,/,
Rep./NNP
John/NNP
Dingell/NNP
is/VBZ
trying/VBG
again/RB
to/TO
raise/VB
the/DT
Fairness/NNP
Doctrine/NNP
from/IN
the/DT
dead/JJ
./.
President/NNP
Reagan/NNP
vetoed/VBD
this/DT
as/IN
a/DT
First/NNP
Amendment/NNP
violation/NN
./.
The/DT
``/``
Fairness/NNP
''/''
Doctrine/NNP
's/POS
enthusiasts/NNS
are/VBP
incumbents/NNS
in/IN
the/DT
House/NNP
who/WP
know/VBP
the/DT
rules/NNS
squelch/VBP
lively/JJ
discussions/NNS
on/IN
broadcasts/NNS
,/,
deterring/VBG
feisty/JJ
challengers/NNS
./.
There/EX
are/VBP
also/RB
other/JJ
provisions/NNS
requiring/VBG
Congressmen/NNS
to/TO
join/VB
treaty-negotiating/JJ
teams/NNS
and/CC
new/JJ
restrictions/NNS
on/IN
OMB/NNP
./.
Unconstitutional/JJ
bills/NNS
make/VBP
good/JJ
legal/JJ
targets/NNS
,/,
but/CC
the/DT
line-item/JJ
veto/NN
is/VBZ
better/RB
understood/VBN
as/IN
a/DT
political/JJ
opportunity/NN
than/IN
as/IN
mere/JJ
fodder/NN
for/IN
lawyers/NNS
./.
Commenting/VBG
on/IN
the/DT
budget/NN
mess/NN
this/DT
week/NN
,/,
President/NNP
Bush/NNP
said/VBD
:/:
``/``
The/DT
perception/NN
out/IN
there/RB
is/VBZ
that/IN
it/PRP
's/VBZ
the/DT
fault/NN
of/IN
Congress/NNP
./.
And/CC
you/PRP
can/MD
look/VB
to/TO
the/DT
leadership/NN
and/CC
ask/VB
them/PRP
why/WRB
that/DT
is/VBZ
the/DT
perception/NN
of/IN
the/DT
American/JJ
people/NNS
./.
''/''
Exactly/RB
right/RB
./.
Now/RB
's/VBZ
the/DT
time/NN
to/TO
make/VB
the/DT
political/JJ
case/NN
that/IN
Presidents/NNS
need/VBP
the/DT
line-item/JJ
weapon/NN
to/TO
restore/VB
discipline/NN
to/TO
the/DT
budget/NN
./.
Congress/NNP
is/VBZ
in/IN
no/DT
position/NN
to/TO
naysay/VB
Mr./NNP
Bush/NNP
now/RB
that/IN
we/PRP
're/VBP
into/IN
Gramm-Rudman/NNP
's/POS
sequestration/NN
./.
Just/RB
this/DT
week/NN
,/,
the/DT
House-Senate/NNP
conference/NN
met/VBD
--/:
231/CD
conferees/NNS
,/,
divided/VBN
into/IN
26/CD
different/JJ
subconferences/NNS
./.
Senator/NNP
Daniel/NNP
Inouye/NNP
agreed/VBD
to/TO
close/VB
some/DT
bases/NNS
in/IN
Hawaii/NNP
in/IN
exchange/NN
for/IN
such/JJ
goodies/NNS
as/IN
$/$
11/CD
million/CD
for/IN
a/DT
parking/NN
lot/NN
at/IN
Walter/NNP
Reed/NNP
Hospital/NNP
./.
Conference/NN
negotiator/NN
Rep./NNP
Bill/NNP
Hefner/NNP
pulled/VBD
down/IN
$/$
40/CD
million/CD
in/IN
military/JJ
bases/NNS
for/IN
North/NNP
Carolina/NNP
and/CC
graciously/RB
allowed/VBN
Senator/NNP
James/NNP
Sasser/NNP
$/$
70/CD
million/CD
for/IN
bases/NNS
in/IN
Tennessee/NNP
./.
President/NNP
Bush/NNP
should/MD
take/VB
the/DT
Constitution/NNP
in/IN
one/CD
hand/NN
and/CC
a/DT
budget/NN
ax/NN
in/IN
the/DT
other/JJ
and/CC
get/VB
to/TO
work/VB
./.
He/PRP
should/MD
chop/VB
out/IN
both/DT
unconstitutional/JJ
provisions/NNS
and/CC
budget/NN
pork/NN
./.
Congress/NNP
may/MD
have/VB
lost/VBN
any/DT
sense/NN
of/IN
discipline/NN
,/,
but/CC
that/IN
does/VBZ
n't/RB
mean/VB
the/DT
country/NN
must/MD
learn/VB
to/TO
live/VB
forever/RB
with/IN
this/DT
mess/NN
./.
President/NNP
Bush/NNP
has/VBZ
the/DT
power/NN
to/TO
change/VB
how/WRB
Washington/NNP
works/VBZ
,/,
if/IN
only/RB
he/PRP
will/MD
use/VB
it/PRP
./.
Troubled/JJ
SCI/NNP
Television/NNP
Inc./NNP
proposed/VBD
to/TO
restructure/VB
much/JJ
of/IN
its/PRP$
$/$
1.3/CD
billion/CD
in/IN
debt/NN
to/TO
buy/VB
time/NN
to/TO
sell/VB
assets/NNS
and/CC
pay/VB
its/PRP$
obligations/NNS
./.
The/DT
leveraged/JJ
buy-out/JJ
firm/NN
of/IN
Kohlberg/NNP
Kravis/NNP
Roberts/NNP
&/CC
Co./NNP
,/,
which/WDT
owns/VBZ
46/CD
%/NN
of/IN
the/DT
common/JJ
equity/NN
of/IN
SCI/NNP
TV/NNP
,/,
indicated/VBD
in/IN
the/DT
debt/NN
plan/NN
that/IN
it/PRP
would/MD
reduce/VB
its/PRP$
equity/NN
stake/NN
to/TO
15/CD
%/NN
,/,
giving/VBG
the/DT
rest/NN
of/IN
its/PRP$
stake/NN
to/TO
bondholders/NNS
in/IN
the/DT
restructuring/NN
./.
KKR/NNP
also/RB
signaled/VBD
to/TO
the/DT
company/NN
's/POS
creditors/NNS
that/IN
Henry/NNP
Kravis/NNP
and/CC
other/JJ
KKR/NNP
directors/NNS
of/IN
SCI/NNP
TV/NNP
would/MD
resign/VB
from/IN
the/DT
board/NN
once/IN
the/DT
restructuring/NN
is/VBZ
completed/VBN
and/CC
forgo/VB
their/PRP$
voting/NN
rights/NNS
./.
Holders/NNS
of/IN
SCI/NNP
TV/NNP
's/POS
$/$
507/CD
million/CD
of/IN
high-yield/JJ
junk/NN
bonds/NNS
are/VBP
being/VBG
asked/VBD
to/TO
forgive/VB
a/DT
lot/NN
of/IN
debt/NN
in/IN
exchange/NN
for/IN
taking/VBG
a/DT
39/CD
%/NN
equity/NN
stake/NN
in/IN
SCI/NNP
TV/NNP
./.
They/PRP
immediately/RB
termed/VBD
the/DT
proposal/NN
inadequate/JJ
and/CC
said/VBD
the/DT
restructuring/VBG
would/MD
not/RB
solve/VB
the/DT
company/NN
's/POS
problems/NNS
./.
``/``
I/PRP
think/VBP
the/DT
current/JJ
plan/NN
is/VBZ
sufficiently/RB
flawed/VBN
in/IN
a/DT
sufficient/JJ
number/NN
of/IN
bondholders/NNS
'/POS
eyes/NNS
that/IN
substantial/JJ
revisions/NNS
will/MD
be/VB
required/VBN
to/TO
get/VB
it/PRP
done/VBN
,/,
''/''
says/VBZ
analyst/NN
Craig/NNP
Davis/NNP
of/IN
R.D./NNP
Smith/NNP
&/CC
Co./NNP
here/RB
./.
Investors/NNS
interpreted/VBD
the/DT
KKR/NNP
move/NN
as/IN
a/DT
desire/NN
by/IN
the/DT
firm/NN
to/TO
wash/VB
its/PRP$
hands/NNS
of/IN
SCI/NNP
TV/NNP
./.
But/CC
a/DT
spokesman/NN
for/IN
KKR/NNP
says/VBZ
that/IN
with/IN
only/RB
a/DT
15/CD
%/NN
equity/NN
stake/NN
,/,
it/PRP
would/MD
n't/RB
be/VB
appropriate/JJ
for/IN
KKR/NNP
to/TO
keep/VB
board/NN
representation/NN
./.
KKR/NNP
already/RB
has/VBZ
made/VBN
about/IN
$/$
1/CD
billion/CD
of/IN
gains/NNS
from/IN
earlier/JJR
transactions/NNS
with/IN
SCI/NNP
TV/NNP
,/,
thus/RB
it/PRP
is/VBZ
n't/RB
significantly/RB
affected/VBN
by/IN
the/DT
company/NN
's/POS
troubles/NNS
./.
SCI/NNP
TV/NNP
,/,
which/WDT
is/VBZ
controlled/VBN
by/IN
Nashville/NNP
,/,
Tenn./NNP
,/,
entrepreneur/NN
George/NNP
Gillett/NNP
,/,
owns/VBZ
six/CD
TV/NN
stations/NNS
,/,
including/VBG
several/JJ
CBS/NNP
Inc./NNP
affiliates/NNS
./.
It/PRP
is/VBZ
having/VBG
trouble/NN
meeting/VBG
its/PRP$
debt/NN
payments/NNS
because/IN
of/IN
heavy/JJ
borrowing/NN
in/IN
1987/CD
for/IN
a/DT
leveraged/JJ
buy-out/NN
./.
Through/IN
investment/NN
banker/NN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
,/,
SCI/NNP
TV/NNP
is/VBZ
offering/VBG
to/TO
exchange/VB
three/CD
classes/NNS
of/IN
junk/NN
bonds/NNS
for/IN
packages/NNS
of/IN
new/JJ
bonds/NNS
and/CC
equity/NN
that/IN
investors/NNS
value/NN
at/IN
ranges/NNS
from/IN
20/CD
cents/NNS
to/TO
70/CD
cents/NNS
on/IN
the/DT
dollar/NN
./.
KKR/NNP
would/MD
give/VB
up/IN
a/DT
31/CD
%/NN
equity/NN
stake/NN
to/TO
bondholders/NNS
,/,
while/IN
Mr./NNP
Gillett/NNP
would/MD
surrender/VB
an/DT
8/CD
%/NN
stake/NN
./.
While/IN
one/CD
big/JJ
SCI/NNP
TV/NNP
investor/NN
thinks/VBZ
that/DT
's/VBZ
pretty/RB
generous/JJ
,/,
many/JJ
junkholders/NNS
had/VBD
been/VBN
hoping/VBG
that/IN
KKR/NNP
and/CC
Mr./NNP
Gillett/NNP
would/MD
invest/VB
new/JJ
money/NN
in/IN
SCI/NNP
TV/NNP
./.
Those/DT
investors/NNS
think/VBP
SCI/NNP
TV/NNP
needs/VBZ
new/JJ
equity/NN
to/TO
survive/VB
./.
SCI/NNP
TV/NNP
's/POS
debt/NN
restructuring/NN
plan/NN
would/MD
defer/VB
payment/NN
of/IN
$/$
153/CD
million/CD
of/IN
bank/NN
debt/NN
./.
It/PRP
also/RB
would/MD
defer/VB
interest/NN
and/CC
principal/NN
on/IN
junk/NN
bonds/NNS
that/WDT
have/VBP
fallen/VBN
due/JJ
;/:
the/DT
grace/NN
period/NN
for/IN
paying/VBG
the/DT
bill/NN
expires/VBZ
Nov./NNP
16/CD
./.
At/IN
the/DT
same/JJ
time/NN
,/,
investors/NNS
estimate/VBP
the/DT
restructuring/VBG
would/MD
cut/VB
the/DT
company/NN
's/POS
annual/JJ
cash/NN
interest/NN
bill/NN
from/IN
about/IN
$/$
90/CD
million/CD
to/TO
$/$
85/CD
million/CD
./.
Yet/RB
to/TO
pay/VB
that/DT
interest/NN
bill/NN
,/,
analysts/NNS
say/VBP
SCI/NNP
TV/NNP
will/MD
only/RB
produce/VB
about/IN
$/$
80/CD
million/CD
to/TO
$/$
90/CD
million/CD
of/IN
cash/NN
flow/NN
a/DT
year/NN
./.
Office/NN
Market/NN
Weakens/VBZ
In/IN
Overbuilt/JJ
Northeast/NN
THE/DT
NORTHEAST/NN
office/NN
market/NN
is/VBZ
feeling/VBG
serious/JJ
aftereffects/NNS
of/IN
the/DT
giddy/JJ
overbuilding/NN
of/IN
the/DT
1980s/CD
./.
Foreclosures/NNS
and/CC
other/JJ
signs/NNS
of/IN
financial/JJ
distress/NN
,/,
most/RBS
often/RB
associated/VBN
with/IN
the/DT
real/JJ
estate/NN
market/NN
in/IN
the/DT
Southwest/NN
,/,
are/VBP
surfacing/VBG
in/IN
the/DT
suburban/JJ
office/NN
market/NN
of/IN
the/DT
once/RB
thriving/JJ
Northeast/NN
./.
Some/DT
projects/NNS
are/VBP
now/RB
in/IN
the/DT
hands/NNS
of/IN
lenders/NNS
,/,
including/VBG
a/DT
425,000-square-foot/JJ
office/NN
facility/NN
in/IN
Little/NNP
Falls/NNP
,/,
N.J/NNP
./.
The/DT
owners/NNS
of/IN
a/DT
32-acre/JJ
hotel/NN
and/CC
office/NN
complex/NN
in/IN
King/NNP
of/IN
Prussia/NNP
,/,
Pa./NNP
,/,
have/VBP
advertised/VBN
for/IN
new/JJ
financing/NN
./.
Rising/VBG
office/NN
vacancy/NN
rates/NNS
in/IN
Fairfield/NNP
County/NNP
,/,
Conn./NNP
,/,
have/VBP
builders/NNS
and/CC
bankers/NNS
scrambling/VBG
to/TO
restructure/VB
loans/NNS
./.
And/CC
in/IN
suburban/JJ
Boston/NNP
,/,
developers/NNS
are/VBP
bracing/VBG
for/IN
cutbacks/NNS
in/IN
the/DT
computer/NN
industry/NN
,/,
a/DT
major/JJ
user/NN
of/IN
office/NN
space/NN
./.
Many/JJ
troubled/VBN
properties/NNS
have/VBP
n't/RB
been/VBN
foreclosed/VBN
on/IN
and/CC
are/VBP
hard/JJ
to/TO
identify/VB
,/,
says/VBZ
Albert/NNP
I./NNP
Berger/NNP
,/,
who/WP
heads/VBZ
the/DT
Secaucus/NNP
,/,
N.J./NNP
,/,
office/NN
of/IN
Helmsley-Spear/NNP
Inc./NNP
,/,
a/DT
real/JJ
estate/NN
brokerage/NN
./.
Owners/NNS
are/VBP
voluntarily/RB
--/:
and/CC
quietly/RB
--/:
turning/VBG
over/IN
properties/NNS
to/TO
lenders/NNS
through/IN
``/``
deeds/NNS
in/IN
lieu/NN
of/IN
foreclosure/NN
./.
''/''
Often/RB
,/,
developers/NNS
stay/VBP
on/IN
as/IN
property/NN
manager/NN
./.
Real/JJ
estate/NN
analyst/NN
Lloyd/NNP
Lynford/NNP
says/VBZ
the/DT
Northeast/NN
's/POS
distress/NN
is/VBZ
masked/VBN
by/IN
relatively/RB
low/JJ
vacancy/NN
rates/NNS
./.
But/CC
in/IN
today/NN
's/POS
overbuilt/NN
market/NN
,/,
tenants/NNS
have/VBP
many/JJ
choices/NNS
and/CC
are/VBP
negotiating/VBG
low/JJ
rents/NNS
that/WDT
squeeze/VBP
building/NN
owners/NNS
./.
On/IN
average/NN
,/,
Mr./NNP
Lynford/NNP
says/VBZ
,/,
it/PRP
now/RB
takes/VBZ
three/CD
to/TO
3/CD
1\/2/CD
years/NNS
to/TO
fill/VB
new/JJ
office/NN
space/NN
,/,
compared/VBN
with/IN
2/CD
1\/2/CD
years/NNS
in/IN
1988/CD
./.
Beverly/NNP
Hills/NNP
Comes/VBZ
To/TO
Suburban/JJ
Tokyo/NNP
WHY/WRB
SHOULD/MD
the/DT
Japanese/NNP
cross/VB
the/DT
Pacific/NNP
to/TO
buy/VB
American/JJ
real/JJ
estate/NN
when/WRB
they/PRP
can/MD
simply/RB
recreate/VB
it/PRP
at/IN
home/NN
?/.
Tokyu/NNP
Development/NNP
Corp./NNP
is/VBZ
spending/VBG
$/$
500/CD
million/CD
to/TO
build/VB
American-style/JJ
luxury/NN
homes/NNS
in/IN
suburban/JJ
Tokyo/NNP
with/IN
rarely/RB
seen/VBN
back/NN
yards/NNS
,/,
front/JJ
yards/NNS
,/,
swimming/NN
pools/NNS
and/CC
tennis/NN
courts/NNS
./.
The/DT
Japanese/JJ
company/NN
hired/VBD
Richardson/NNP
Nagy/NNP
Martin/NNP
,/,
a/DT
Newport/NNP
Beach/NNP
,/,
Calif./NNP
,/,
architectural/JJ
firm/NN
,/,
to/TO
design/VB
what/WP
the/DT
Japanese/JJ
press/NN
has/VBZ
dubbed/VBN
``/``
the/DT
Beverly/NNP
Hills/NNP
of/IN
Tokyo/NNP
./.
''/''
Instead/RB
of/IN
Japan/NNP
's/POS
typical/JJ
small/JJ
homes/NNS
clustered/VBN
on/IN
narrow/JJ
streets/NNS
with/IN
no/DT
sidewalks/NNS
,/,
the/DT
new/JJ
``/``
One/CD
Hundred/NNP
Hills/NNPS
''/''
development/NN
will/MD
offer/VB
65/CD
houses/NNS
on/IN
half-acre/JJ
lots/NNS
./.
That/DT
's/VBZ
more/JJR
than/IN
10/CD
times/NNS
the/DT
usual/JJ
housing/NN
site/NN
size/NN
./.
Buyers/NNS
with/IN
$/$
6/CD
million/CD
to/TO
spend/VB
can/MD
select/VB
from/IN
11/CD
designs/NNS
,/,
including/VBG
a/DT
Mediterranean-inspired/JJ
California/NNP
style/NN
,/,
a/DT
traditional/JJ
Yankee/NN
look/NN
and/CC
designs/NNS
inspired/VBN
by/IN
Midwestern/NN
architect/NN
Frank/NNP
Lloyd/NNP
Wright/NNP
./.
There/EX
are/VBP
spacious/JJ
living/NN
rooms/NNS
and/CC
baths/NNS
,/,
plus/CC
a/DT
master/NN
grandparents/NNS
suite/NN
and/CC
a/DT
foyer/NN
for/IN
removing/VBG
shoes/NNS
to/TO
suit/VB
Japanese/JJ
life/NN
styles/NNS
./.
Exteriors/NNS
are/VBP
faced/VBN
with/IN
brick/NN
,/,
wood/NN
or/CC
stone/NN
,/,
but/CC
the/DT
homes/NNS
are/VBP
made/VBN
of/IN
steel-reinforced/JJ
concrete/NN
./.
``/``
We/PRP
were/VBD
disappointed/VBN
we/PRP
could/MD
n't/RB
use/VB
wood/NN
,/,
''/''
says/VBZ
architect/NN
Walter/NNP
J./NNP
Richardson/NNP
,/,
``/``
but/CC
the/DT
Japanese/NNP
only/RB
want/VBP
stronger/JJR
materials/NNS
./.
''/''
At/IN
$/$
1,000/CD
per/IN
square/JJ
foot/NN
,/,
the/DT
Japanese/NNP
want/VBP
the/DT
feeling/NN
of/IN
indestructibility/NN
,/,
he/PRP
explains/VBZ
,/,
not/RB
to/TO
mention/VB
protection/NN
from/IN
possible/JJ
earthquake/NN
damage/NN
./.
Housing/NN
Developers/NNS
Try/VBP
Brand-Name/NN
Buildings/NNS
RESIDENTIAL/NNP
builders/NNS
,/,
faced/VBN
with/IN
a/DT
more/RBR
competitive/JJ
market/NN
,/,
are/VBP
turning/VBG
to/TO
a/DT
traditional/JJ
consumer/NN
marketing/NN
technique/NN
to/TO
establish/VB
brand-name/NN
identity/NN
./.
``/``
One/CD
of/IN
the/DT
difficulties/NNS
people/NNS
in/IN
real/JJ
estate/NN
have/VBP
is/VBZ
that/IN
each/DT
product/NN
is/VBZ
like/IN
starting/VBG
a/DT
new/JJ
company/NN
,/,
or/CC
starting/VBG
a/DT
new/JJ
line/NN
in/IN
the/DT
fashion/NN
business/NN
,/,
''/''
says/VBZ
L./NNP
Robert/NNP
Lieb/NNP
president/NN
of/IN
Mountain/NNP
Development/NNP
Corp./NNP
in/IN
West/NNP
Paterson/NNP
,/,
N.J/NNP
./.
So/IN
he/PRP
's/VBZ
using/VBG
``/``
river/NN
''/''
in/IN
many/JJ
project/NN
names/NNS
./.
``/``
It/PRP
'll/MD
never/RB
be/VB
like/IN
what/WP
Bristol-Myers/NNP
does/VBZ
,/,
''/''
he/PRP
adds/VBZ
,/,
``/``
but/CC
it/PRP
helps/VBZ
establish/VB
recognition/NN
with/IN
the/DT
public/NN
--/:
and/CC
with/IN
banks/NNS
./.
''/''
Weingarten-Siegel/NNP
Group/NNP
Inc./NNP
of/IN
Manalapan/NNP
,/,
N.J./NNP
,/,
has/VBZ
built/VBN
Cross/NNP
Creek/NNP
Pointe/NNP
,/,
Allegro/NNP
Pointe/NNP
and/CC
other/JJ
Pointes/NNP
in/IN
New/NNP
Jersey/NNP
./.
Caspi/NNP
Development/NNP
Corp/NNP
of/IN
Armonk/NNP
,/,
N.Y./NNP
,/,
has/VBZ
developed/VBN
two/CD
apartment/NN
buildings/NNS
called/VBN
Classic/JJ
and/CC
plans/VBZ
a/DT
third/JJ
./.
Developer/NNP
Steve/NNP
Caspi/NNP
says/VBZ
the/DT
same/JJ
brand/NN
name/NN
indicates/VBZ
consistent/JJ
quality/NN
,/,
``/``
regardless/RB
of/IN
location/NN
,/,
design/NN
or/CC
amenities/NNS
./.
''/''
The/DT
leader/NN
in/IN
real/JJ
estate/NN
brand/NN
names/NNS
is/VBZ
developer/NN
Ara/NNP
Hovnanian/NNP
./.
His/PRP$
entry-price/JJ
condos/NNS
are/VBP
labeled/VBN
Society/NNP
Hill/NNP
./.
Beacon/NNP
Hill/NNP
is/VBZ
for/IN
``/``
move-up/JJ
''/''
town/NN
houses/NNS
,/,
and/CC
Nob/NNP
Hill/NNP
,/,
for/IN
single-family/NN
houses/NNS
./.
Because/IN
of/IN
standardized/JJ
designs/NNS
,/,
Mr./NNP
Hovnanian/NNP
says/VBZ
,/,
``/``
a/DT
buyer/NN
can/MD
visualize/VB
Society/NNP
Hill/NNP
regardless/RB
of/IN
where/WRB
it/PRP
is/VBZ
./.
''/''
Quake/NN
Not/RB
Likely/RB
to/TO
Jolt/VB
The/DT
Commercial/NN
Market/NN
THE/DT
EARTHQUAKE/NN
in/IN
San/NNP
Francisco/NNP
has/VBZ
sent/VBN
few/JJ
tremors/NNS
through/IN
the/DT
hearts/NNS
of/IN
real/JJ
estate/NN
investors/NNS
./.
``/``
I/PRP
think/VBP
there/EX
's/VBZ
a/DT
disease/NN
called/VBN
buyer/NN

's/POS
regret/NN
,/,
and/CC
I/PRP
'm/VBP
sure/JJ
it/PRP
's/VBZ
running/VBG
rampant/JJ
at/IN
this/DT
moment/NN
,/,
but/CC
it/PRP
gets/VBZ
cured/VBN
in/IN
a/DT
short/JJ
period/NN
of/IN
time/NN
,/,
''/''
says/VBZ
Kenneth/NNP
Leventhal/NNP
,/,
co-managing/JJ
partner/NN
of/IN
Kenneth/NNP
Leventhal/NNP
&/CC
Co./NNP
,/,
a/DT
Los/NNP
Angeles/NNP
accounting/NN
firm/NN
specializing/VBG
in/IN
real/JJ
estate/NN
./.
``/``
If/IN
I/PRP
were/VBD
buying/VBG
a/DT
building/NN
in/IN
San/NNP
Francisco/NNP
now/RB
the/DT
first/JJ
thing/NN
I/PRP
'd/MD
do/VB
is/VBZ
insist/VB
on/IN
a/DT
structural/JJ
inspection/NN
,/,
then/RB
I/PRP
'd/MD
delay/VB
a/DT
little/JJ
,/,
stall/VB
a/DT
little/JJ
./.
''/''
But/CC
like/IN
other/JJ
real/JJ
estate/NN
professionals/NNS
accustomed/VBN
to/TO
California/NNP
's/POS
quake/NN
risks/NNS
,/,
Mr./NNP
Leventhal/NNP
anticipates/VBZ
little/RB
long-term/JJ
change/NN
in/IN
the/DT
city/NN
's/POS
commercial/JJ
real/JJ
estate/NN
market/NN
./.
Still/RB
,/,
local/JJ
builders/NNS
are/VBP
eager/JJ
to/TO
tell/VB
the/DT
world/NN
that/IN
most/JJS
of/IN
San/NNP
Francisco/NNP
does/VBZ
n't/RB
look/VB
like/IN
the/DT
TV/NN
images/NNS
of/IN
destruction/NN
./.
Planners/NNS
of/IN
the/DT
Urban/NNP
Land/NNP
Institute/NNP
real/JJ
estate/NN
conference/NN
this/DT
week/NN
hastily/RB
added/VBD
a/DT
panel/NN
on/IN
the/DT
quake/NN
's/POS
effects/NNS
./.
``/``
The/DT
message/NN
is/VBZ
we/PRP
build/VBP
'em/PRP
right/RB
,/,
''/''
says/VBZ
Peter/NNP
Bedford/NNP
,/,
a/DT
California/NNP
developer/NN
and/CC
officer/NN
at/IN
Urban/NNP
Land/NNP
Institute/NNP
./.
``/``
There/EX
's/POS
seven/CD
million/CD
square/JJ
feet/NNS
of/IN
space/NN
that/WDT
's/VBZ
doing/VBG
great/JJ
./.
''/''
HEALTH/NN
CLUBS/NNS
gear/VBP
up/IN
for/IN
a/DT
graying/VBG
clientele/NN
./.
Although/IN
their/PRP$
ads/NNS
picture/VBP
curvy/JJ
young/JJ
people/NNS
in/IN
skimpy/JJ
outfits/NN
,/,
club/NN
owners/NNS
know/VBP
the/DT
future/NN
lies/VBZ
with/IN
the/DT
lumpier/JJR
over-40/JJ
set/NN
./.
``/``
It/PRP
's/VBZ
a/DT
misconception/NN
that/DT
physical/JJ
fitness/NN
is/VBZ
something/NN
for/IN
the/DT
young/JJ
and/CC
middle-aged/JJ
,/,
''/''
says/VBZ
Michael/NNP
Pacholik/NNP
,/,
sales/JJ
manager/NN
of/IN
the/DT
LA/NNP
Fitness/NNP
club/NN
,/,
Diamond/NNP
Bar/NNP
,/,
Calif/NNP
./.
About/IN
10/CD
%/NN
to/TO
15/CD
%/NN
of/IN
members/NNS
at/IN
Atlanta/NNP
's/POS
Holiday/NNP
Espre/NNP
Center/NNP
are/VBP
elderly/JJ
,/,
says/VBZ
Gerald/NNP
Williams/NNP
,/,
fitness/NN
consultant/NN
./.
``/``
Most/JJS
want/VBP
cardiovascular/JJ
conditioning/NN
.../:
the/DT
No./NN
1/CD
way/NN
of/IN
reducing/VBG
risk/NN
of/IN
heart/NN
disease/NN
./.
''/''
The/DT
Association/NNP
of/IN
Quality/NNP
Clubs/NNPS
,/,
which/WDT
puts/VBZ
1988/CD
industry/NN
revenue/NN
at/IN
$/$
5/CD
billion/CD
,/,
surveyed/VBD
the/DT
health-conscious/JJ
over-40/JJ
market/NN
and/CC
found/VBD
that/IN
43/CD
%/NN
exercise/NN
regularly/RB
./.
Michael/NNP
Hays/NNP
,/,
head/NN
of/IN
ProBody/NNP
Fitness/NNP
,/,
notes/VBZ
an/DT
industry/NN
``/``
wash/NN
''/''
is/VBZ
in/IN
progress/NN
./.
``/``
Clubs/NNS
need/VBP
to/TO
be/VB
run/VBN
like/IN
restaurants/NNS
where/WRB
every/DT
square/JJ
foot/NN
makes/VBZ
a/DT
dollar/NN
,/,
''/''
he/PRP
says/VBZ
./.
Older/JJR
people/NNS
help/VBP
profits/NNS
by/IN
filling/VBG
in/IN
``/``
downtime/NN
./.
''/''
He/PRP
adds/VBZ
:/:
``/``
The/DT
medical/JJ
market/NN
and/CC
the/DT
fitness/NN
market/NN
parallel/RB
each/DT
other/JJ
and/CC
are/VBP
going/VBG
to/TO
cross/VB
real/JJ
soon/RB
./.
''/''
People/NNS
on/IN
fixed/VBN
incomes/NNS
get/VBP
a/DT
break/NN
at/IN
Espre/NNP
;/:
over/IN
55/CD
wins/NNS
a/DT
45/CD
%/NN
discount/NN
at/IN
Anaheim/NNP
Imperial/NNP
Health/NNP
Spa/NNP
./.
``/``
HOT/NNP
''/''
TOPAZ/NNP
sparks/VBZ
regulator/NN
,/,
jeweler/NN
concern/NN
over/IN
import/NN
of/IN
irradiated/JJ
stones/NNS
./.
A/DT
committee/NN
of/IN
gem/NN
dealers/NNS
investigates/VBZ
the/DT
source/NN
of/IN
some/DT
``/``
hot/JJ
''/''
blue/JJ
topaz/NN
stones/NNS
recently/RB
reported/VBN
by/IN
a/DT
Hong/NNP
Kong/NNP
jewelry/NN
manufacturer/NN
./.
In/IN
the/DT
U.S./NNP
,/,
radiation/NN
limits/NNS
are/VBP
set/VBN
and/CC
monitored/VBN
by/IN
the/DT
Nuclear/NNP
Regulatory/NNP
Commission/NNP
,/,
which/WDT
licenses/VBZ
reactors/NNS
that/WDT
process/VBP
the/DT
topaz/NN
./.
The/DT
agency/NN
is/VBZ
working/VBG
on/IN
licensing/VBG
importers/NNS
but/CC
does/VBZ
n't/RB
currently/RB
monitor/VB
imports/NNS
./.
Topaz/NNP
,/,
a/DT
translucent/JJ
mineral/NN
that/WDT
is/VBZ
often/RB
whitish/JJ
when/WRB
taken/VBN
from/IN
the/DT
ground/NN
,/,
can/MD
be/VB
turned/VBN
blue/JJ
by/IN
irradiation/NN
,/,
which/WDT
transforms/VBZ
it/PRP
into/IN
a/DT
gemstone/NN
that/WDT
looks/VBZ
like/IN
an/DT
aquamarine/NN
./.
``/``
The/DT
stones/NNS
that/WDT
were/VBD
irradiated/VBN
in/IN
the/DT
U.S./NNP
are/VBP
safe/JJ
,/,
''/''
says/VBZ
John/NNP
Hickey/NNP
,/,
chief/NN
of/IN
the/DT
NRC/NNP
operations/NNS
branch/NN
,/,
Washington/NNP
./.
``/``
We/PRP
believe/VBP
that/IN
the/DT
vast/JJ
majority/NN
of/IN
imported/VBN
material/NN
is/VBZ
safe/JJ
./.
But/CC
there/EX
is/VBZ
a/DT
small/JJ
risk/NN
that/IN
some/DT
were/VBD
imported/VBN
with/IN
high/JJ
radiation/NN
levels/NNS
./.
''/''
Mr./NNP
Hickey/NNP
added/VBD
that/IN
the/DT
stones/NNS
found/VBN
in/IN
Hong/NNP
Kong/NNP
are/VBP
thought/VBN
to/TO
carry/VB
double/VB
the/DT
U.S./NNP
radiation/NN
limit/NN
,/,
although/IN
he/PRP
noted/VBD
that/IN
double/JJ
or/CC
even/RB
triple/JJ
the/DT
U.S./NNP
limit/NN
is/VBZ
``/``
still/RB
in/IN
the/DT
range/NN
of/IN
safe/JJ
levels/NNS
./.
''/''
Some/DT
jewelers/NNS
have/VBP
Geiger/NNP
counters/NNS
to/TO
measure/VB
topaz/NN
radiation/NN
./.
CAPITAL/NN
TRAVELS/VBZ
to/TO
Europe/NNP
as/IN
1992/CD
unification/NN
nears/VBZ
./.
Boston/NNP
's/POS
Advent/NNP
International/NNP
raises/VBZ
$/$
230/CD
million/CD
from/IN
U.S./NNP
pension/NN
funds/NNS
and/CC
other/JJ
institutions/NNS
to/TO
invest/VB
in/IN
Europe/NNP
./.
Other/JJ
venture/NN
capitalists/NNS
are/VBP
already/RB
there/RB
:/:
MMG/NNP
Patricof/NNP
Group/NNP
and/CC
its/PRP$
Alan/NNP
Patricof/NNP
Associates/NNPS
,/,
New/NNP
York/NNP
;/:
Burr/NNP
,/,
Egan/NNP
,/,
Deleage/NNP
&/CC
Co./NNP
,/,
Boston/NNP
;/:
and/CC
San/NNP
Francisco/NNP
's/POS
Hambrecht/NNP
&/CC
Quist/NNP
have/VBP
about/IN
$/$
800/CD
million/CD
to/TO
invest/VB
in/IN
European/JJ
companies/NNS
./.
European/JJ
venture/NN
capital/NN
funds/NNS
total/JJ
about/IN
$/$
14/CD
billion/CD
and/CC
are/VBP
expected/VBN
to/TO
continue/VB
growing/VBG
35/CD
%/NN
annually/RB
./.
Continentals/NNS
believe/VBP
that/IN
the/DT
strongest/JJS
growth/NN
area/NN
will/MD
be/VB
southern/JJ
Europe/NNP
./.
Spain/NNP
and/CC
Italy/NNP
are/VBP
most/RBS
often/RB
mentioned/VBN
as/IN
the/DT
future/JJ
economic/JJ
hot/JJ
spots/NNS
./.
Favored/JJ
ventures/NNS
include/VBP
media/NNS
,/,
telecommunications/NNS
and/CC
retailing/NN
./.
Most/RBS
popular/JJ
acquisition/NN
method/NN
:/:
the/DT
leveraged/JJ
buy-out/NN
./.
Family-owned/JJ
firms/NNS
that/WDT
need/VBP
cash/NN
to/TO
grow/VB
are/VBP
attractive/JJ
,/,
says/VBZ
John/NNP
Turner/NNP
of/IN
Matuschka/NNP
Gruppe/NNP
,/,
Munich/NNP
./.
AN/DT
AIDS/NNP
DIRECTORY/NN
from/IN
the/DT
American/NNP
Foundation/NNP
for/IN
AIDS/NNP
Research/NNP
rates/VBZ
and/CC
reviews/VBZ
educational/JJ
materials/NNS
./.
``/``
Learning/NNP
AIDS/NNP
''/''
lists/VBZ
films/NNS
,/,
pamphlets/NNS
,/,
brochures/NNS
,/,
videos/NNS
and/CC
other/JJ
educational/JJ
data/NNS
./.
The/DT
distributor/NN
is/VBZ
R.R./NNP
Bowker/NNP
,/,
New/NNP
York/NNP
./.
SUSPECT/JJ
``/``
SALES/NNS
''/''
ads/NNS
are/VBP
challenged/VBN
by/IN
the/DT
Better/NNP
Business/NNP
Bureau/NNP
of/IN
Metropolitan/NNP
New/NNP
York/NNP
./.
The/DT
bureau/NN
found/VBD
that/IN
only/RB
two/CD
of/IN
six/CD
New/NNP
York/NNP
furniture/NN
stores/NNS
could/MD
prove/VB
their/PRP$
presale/NN
prices/NNS
were/VBD
higher/JJR
./.
DRACULA/NNP
'S/VBZ
BUSY/JJ
this/DT
time/NN
of/IN
year/NN
,/,
but/CC
a/DT
visit/NN
to/TO
his/PRP$
Transylvania/NNP
castle/NN
is/VBZ
part/NN
of/IN
a/DT
Chicago-based/JJ
Unitours/NNPS
trip/NN
in/IN
the/DT
spring/NN
,/,
presumably/RB
the/DT
count/NN
's/POS
off-season/NN
./.
RADIO/NNP
MALAISE/NNP
draws/VBZ
the/DT
ear/NN
of/IN
the/DT
Federal/NNP
Communications/NNPS
Commission/NNP
./.
AM/NNP
radio/NN
,/,
which/WDT
has/VBZ
been/VBN
losing/VBG
listeners/NNS
to/TO
FM/NNP
channels/NNS
since/IN
the/DT
1970s/CD
,/,
approaches/VBZ
the/DT
1990s/CD
with/IN
a/DT
diminished/JJ
voice/NN
./.
But/CC
it/PRP
may/MD
have/VB
a/DT
good/JJ
listener/NN
in/IN
Washington/NNP
./.
The/DT
FCC/NNP
plans/NNS
to/TO
hear/VB
a/DT
day/NN
of/IN
testimony/NN
Nov./NNP
16/CD
on/IN
the/DT
plight/NN
of/IN
AM/NNP
radio/NN
./.
The/DT
commission/NN
believes/VBZ
that/IN
improving/VBG
AM/NNP
service/NN
would/MD
broaden/VB
listening/NN
selections/NNS
and/CC
increase/VB
options/NNS
for/IN
advertisers/NNS
./.
The/DT
issues/NNS
are/VBP
also/RB
thought/VBN
to/TO
be/VB
important/JJ
to/TO
the/DT
FCC/NNP
's/POS
new/JJ
chairman/NN
,/,
Alfred/NNP
Sikes/NNP
,/,
a/DT
former/JJ
AM/NNP
broadcaster/NN
in/IN
his/PRP$
native/JJ
Missouri/NNP
./.
The/DT
FM/NNP
radio/NN
band/NN
,/,
considered/VBN
technically/RB
superior/JJ
because/IN
it/PRP
can/MD
carry/VB
stereo/JJ
broadcasts/NNS
,/,
has/VBZ
cornered/VBN
the/DT
airwaves/NNS
for/IN
delivering/VBG
music/NN
./.
AM/NNP
stereo/NN
remains/VBZ
largely/RB
undeveloped/JJ
because/IN
it/PRP
lacks/VBZ
a/DT
uniform/JJ
delivery/NN
system/NN
./.
The/DT
National/NNP
Association/NNP
of/IN
Broadcasters/NNPS
in/IN
June/NNP
adopted/VBD
an/DT
agenda/NN
for/IN
revitalizing/VBG
AM/NNP
radio/NN
that/WDT
includes/VBZ
,/,
among/IN
other/JJ
things/NNS
,/,
pursuing/VBG
further/JJR
FCC/NNP
action/NN
on/IN
selecting/VBG
an/DT
AM/NNP
stereo/JJ
standard/NN
and/CC
seeking/VBG
a/DT
law/NN
requiring/VBG
all/DT
stereo/NN
receivers/NNS
to/TO
include/VB
AM/NNP
stereo/JJ
./.
Listeners/NNS
turned/VBD
to/TO
radios/NNS
run/VBN
on/IN
batteries/NNS
for/IN
news/NN
when/WRB
the/DT
San/NNP
Francisco/NNP
earthquake/NN
and/CC
Hurricane/NNP
Hugo/NNP
cut/VBD
power/NN
lines/NNS
./.
BRIEFS/NNS
:/:
A/DT
Modern/NNP
Healthcare/NNP
magazine/NN
article/NN
says/VBZ
40/CD
%/NN
of/IN
surveyed/VBN
executives/NNS
admitted/VBD
falling/VBG
asleep/RB
during/IN
formal/JJ
presentations/NNS
.../:
./.
Lee/NNP
Co./NNP
,/,
the/DT
jeans/NNS
maker/NN
,/,
celebrates/VBZ
its/PRP$
100th/JJ
anniversary/NN
with/IN
a/DT
hardcover/NN
yearbook/NN
featuring/VBG
photos/NNS
of/IN
its/PRP$
10,000/CD
employees/NNS
./.
Kemper/NNP
Financial/NNP
Services/NNPS
Inc./NNP
,/,
charging/VBG
that/DT
program/NN
trading/NN
is/VBZ
ruining/VBG
the/DT
stock/NN
market/NN
,/,
cut/VBD
off/RP
four/CD
big/JJ
Wall/NNP
Street/NNP
firms/NNS
from/IN
doing/VBG
any/DT
of/IN
its/PRP$
stock-trading/NN
business/NN
./.
The/DT
move/NN
is/VBZ
the/DT
biggest/JJS
salvo/NN
yet/RB
in/IN
the/DT
renewed/VBN
outcry/NN
against/IN
program/NN
trading/NN
,/,
with/IN
Kemper/NNP
putting/VBG
its/PRP$
money/NN
--/:
the/DT
millions/NNS
of/IN
dollars/NNS
in/IN
commissions/NNS
it/PRP
generates/VBZ
each/DT
year/NN
--/:
where/WRB
its/PRP$
mouth/NN
is/VBZ
./.
The/DT
Kemper/NNP
Corp./NNP
unit/NN
and/CC
other/JJ
critics/NNS
complain/VBP
that/DT
program/NN
trading/NN
causes/VBZ
wild/JJ
swings/NNS
in/IN
stock/NN
prices/NNS
,/,
such/JJ
as/IN
on/IN
Tuesday/NNP
and/CC
on/IN
Oct./NNP
13/CD
and/CC
16/CD
,/,
and/CC
has/VBZ
increased/VBN
chances/NNS
for/IN
market/NN
crashes/NNS
./.
Over/IN
the/DT
past/JJ
nine/CD
months/NNS
,/,
several/JJ
firms/NNS
,/,
including/VBG
discount/NN
broker/NN
Charles/NNP
Schwab/NNP
&/CC
Co./NNP
and/CC
Sears/NNP
,/,
Roebuck/NNP
&/CC
Co./NNP
's/POS
Dean/NNP
Witter/NNP
Reynolds/NNP
Inc./NNP
unit/NN
,/,
have/VBP
attacked/VBN
program/NN
trading/NN
as/IN
a/DT
major/JJ
market/NN
evil/NN
./.
Several/JJ
big/JJ
securities/NNS
firms/NNS
backed/VBD
off/RB
from/IN
program/NN
trading/NN
a/DT
few/JJ
months/NNS
after/IN
the/DT
1987/CD
crash/NN
./.
But/CC
most/JJS
of/IN
them/PRP
,/,
led/VBN
by/IN
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
,/,
moved/VBD
back/RB
in/RB
earlier/RBR
this/DT
year/NN
./.
The/DT
most/RBS
volatile/JJ
form/NN
of/IN
program/NN
trading/NN
is/VBZ
index/NN
arbitrage/NN
--/:
the/DT
rapid-fire/JJ
,/,
computer-guided/JJ
buying/NN
and/CC
selling/NN
of/IN
stocks/NNS
offset/VBN
with/IN
opposite/JJ
trades/NNS
in/IN
stock-index/NN
futures/NNS
and/CC
options/NNS
./.
The/DT
object/NN
is/VBZ
to/TO
capture/VB
profits/NNS
from/IN
fleeting/JJ
price/NN
discrepancies/NNS
between/IN
the/DT
futures/NNS
and/CC
options/NNS
and/CC
the/DT
stocks/NNS
themselves/PRP
./.
Index/NN
arbitrage/NN
recently/RB
has/VBZ
accounted/VBN
for/IN
about/IN
half/NN
of/IN
all/DT
program/NN
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
Last/JJ
month/NN
,/,
program/NN
trading/NN
accounted/VBD
for/IN
20.9/CD
million/CD
shares/NNS
a/DT
day/NN
,/,
or/CC
a/DT
record/NN
13.8/CD
%/NN
of/IN
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Board/NNP
's/POS
average/JJ
daily/JJ
volume/NN
./.
On/IN
Tuesday/NNP
afternoon/NN
,/,
Kemper/NNP
told/VBD
Bear/NNP
,/,
Stearns/NNP
&/CC
Co./NNP
,/,
General/NNP
Electric/NNP
Co./NNP
's/POS
Kidder/NNP
,/,
Peabody/NNP
&/CC
Co./NNP
unit/NN
,/,
Morgan/NNP
Stanley/NNP
and/CC
Oppenheimer/NNP
&/CC
Co./NNP
that/IN
it/PRP
will/MD
no/RB
longer/RB
do/VB
business/NN
with/IN
them/PRP
because/IN
of/IN
their/PRP$
commitment/NN
to/TO
index/NN
arbitrage/NN
,/,
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inside/IN
and/CC
outside/IN
these/DT
firms/NNS
confirmed/VBD
./.
Kemper/NNP
officials/NNS
declined/VBD
to/TO
identify/VB
the/DT
firms/NNS
but/CC
acknowledged/VBD
a/DT
long-simmering/JJ
dispute/NN
with/IN
four/CD
securities/NNS
firms/NNS
and/CC
said/VBD
the/DT
list/NN
of/IN
brokers/NNS
it/PRP
wo/MD
n't/RB
do/VB
business/NN
with/IN
may/MD
be/VB
lengthened/VBN
in/IN
the/DT
months/NNS
ahead/RB
./.
``/``
We/PRP
've/VBP
been/VBN
opposed/VBN
to/TO
''/''
index/NN
arbitrage/NN
``/``
for/IN
a/DT
long/JJ
time/NN
,/,
''/''
said/VBD
Stephen/NNP
B./NNP
Timbers/NNP
,/,
chief/JJ
investment/NN
officer/NN
at/IN
Kemper/NNP
,/,
which/WDT
manages/VBZ
$/$
56/CD
billion/CD
,/,
including/VBG
$/$
8/CD
billion/CD
of/IN
stocks/NNS
./.
``/``
Index/NN
arbitrage/NN
does/VBZ
n't/RB
work/VB
,/,
and/CC
it/PRP
scares/VBZ
natural/JJ
buyers/NNS
''/''
of/IN
stock/NN
./.
While/IN
Mr./NNP
Timbers/NNP
explained/VBD
he/PRP
's/VBZ
``/``
not/RB
totally/RB
convinced/JJ
index/NN
arbitrage/NN
changes/VBZ
the/DT
overall/JJ
level/NN
of/IN
the/DT
stock/NN
market/NN
,/,
''/''
he/PRP
said/VBD
that/IN
``/``
on/IN
an/DT
intraday/JJ
basis/NN
,/,
it/PRP
has/VBZ
major/JJ
effects/NNS
./.
We/PRP
've/VBP
talked/VBN
to/TO
proponents/NNS
of/IN
index/NN
arbitrage/NN
and/CC
told/VBD
them/PRP
to/TO
cool/VB
it/PRP
because/IN
they/PRP
're/VBP
ruining/VBG
the/DT
market/NN
./.
They/PRP
said/VBD
,/,
`/``
Too/RB
bad/JJ
,/,
'/''
so/RB
we/PRP
finally/RB
said/VBD
we/PRP
're/VBP
not/RB
going/VBG
to/TO
do/VB
business/NN
with/IN
them/PRP
./.
''/''
Kemper/NNP
also/RB
blasted/VBD
the/DT
Big/NNP
Board/NNP
for/IN
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the/DT
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of/IN
individual/JJ
and/CC
institutional/JJ
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./.
``/``
The/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
has/VBZ
vested/JJ
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in/IN
its/PRP$
big/JJ
member/NN
securities/NNS
firms/NNS
``/``
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cloud/VBP
its/PRP$
objectivity/NN
,/,
''/''
Mr./NNP
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./.
``/``
It/PRP
has/VBZ
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interested/JJ
in/IN
what/WP
we/PRP
think/VBP
./.
The/DT
Big/NNP
Board/NNP
also/RB
has/VBZ
a/DT
terrible/JJ
communication/NN
problem/NN
with/IN
individual/JJ
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,/,
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added/VBD
./.
Small/JJ
investors/NNS
perceive/VBP
that/IN
``/``
big/JJ
operators/NNS
''/''
dominate/VBP
the/DT
market/NN
,/,
said/VBD
Thomas/NNP
O'Hara/NNP
,/,
chairman/NN
of/IN
the/DT
National/NNP
Association/NNP
of/IN
Investors/NNPS
and/CC
head/NN
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the/DT
exchange/NN
's/POS
Individual/NNP
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Advisory/NNP
Committee/NNP
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after/IN
the/DT
1987/CD
crash/NN
./.
``/``
The/DT
impression/NN
I/PRP
've/VBP
got/VBN
is/VBZ
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love/VB
to/TO
do/VB
away/RB
with/IN
it/PRP
program/NN
trading/NN
}/)
,/,
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they/PRP
the/DT
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,/,
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he/PRP
said/VBD
./.
Big/NNP
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Chairman/NNP
John/NNP
J./NNP
Phelan/NNP
said/VBD
in/IN
a/DT
recent/JJ
interview/NN
that/IN
he/PRP
has/VBZ
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inclination/NN
to/TO
eliminate/VB
program/NN
trading/NN
./.
He/PRP
said/VBD
the/DT
market/NN
's/POS
volatility/NN
disturbs/VBZ
him/PRP
,/,
but/CC
that/IN
all/PDT
the/DT
exchange/NN
can/MD
do/VB
is/VBZ
``/``
slow/VB
down/RP
the/DT
process/NN
''/''
by/IN
using/VBG
its/PRP$
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breakers/NNS
and/CC
shock/NN
absorbers/NNS
./.
Mr./NNP
Timbers/NNP
countered/VBD
that/IN
``/``
the/DT
mere/JJ
fact/NN
they/PRP
put/VBD
in/RP
circuit/NN
breakers/NNS
is/VBZ
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admission/NN
of/IN
their/PRP$
problems/NNS
./.
''/''
Morgan/NNP
Stanley/NNP
and/CC
Kidder/NNP
Peabody/NNP
,/,
the/DT
two/CD
biggest/JJS
program/NN
trading/NN
firms/NNS
,/,
staunchly/RB
defend/VBP
their/PRP$
strategies/NNS
./.
``/``
We/PRP
continue/VBP
to/TO
believe/VB
the/DT
position/NN
we/PRP
've/VBP
taken/VBN
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reasonable/JJ
,/,
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a/DT
Morgan/NNP
Stanley/NNP
official/NN
said/VBD
./.
``/``
We/PRP
would/MD
stop/VB
index/NN
arbitrage/NN
when/WRB
the/DT
market/NN
is/VBZ
under/IN
stress/NN
,/,
and/CC
we/PRP
have/VBP
recently/RB
,/,
''/''
he/PRP
said/VBD
,/,
citing/VBG
Oct./NNP
13/CD
and/CC
earlier/RB
this/DT
week/NN
./.
Michael/NNP
Carpenter/NNP
,/,
president/NN
and/CC
chief/JJ
executive/NN
officer/NN
at/IN
Kidder/NNP
Peabody/NNP
,/,
said/VBD
in/IN
a/DT
recent/JJ
interview/NN
,/,
``/``
We/PRP
do/VBP
n't/RB
think/VB
that/DT
index/NN
arbitrage/NN
has/VBZ
a/DT
negative/JJ
impact/NN
on/IN
the/DT
market/NN
as/IN
a/DT
whole/NN
./.
''/''
According/VBG
to/TO
Lawrence/NNP
Eckenfelder/NNP
,/,
a/DT
securities/NNS
industry/NN
analyst/NN
at/IN
Prudential-Bache/NNP
Securities/NNPS
Inc./NNP
,/,
``/``
Kemper/NNP
is/VBZ
the/DT
first/JJ
firm/NN
to/TO
make/VB
a/DT
major/JJ
statement/NN
with/IN
program/NN
trading/NN
./.
''/''
He/PRP
added/VBD
that/IN
``/``
having/VBG
just/RB
one/CD
firm/NN
do/VB
this/DT
is/VBZ
n't/RB
going/VBG
to/TO
mean/VB
a/DT
hill/NN
of/IN
beans/NNS
./.
But/CC
if/IN
this/DT
prompts/VBZ
others/NNS
to/TO
consider/VB
the/DT
same/JJ
thing/NN
,/,
then/RB
it/PRP
may/MD
become/VB
much/RB
more/RBR
important/JJ
./.
''/''
The/DT
following/VBG
were/VBD
among/IN
yesterday/NN
's/POS
offerings/NNS
and/CC
pricings/NNS
in/IN
the/DT
U.S./NNP
and/CC
non-U.S./JJ
capital/NN
markets/NNS
,/,
with/IN
terms/NNS
and/CC
syndicate/NN
manager/NN
,/,
as/IN
compiled/VBN
by/IN
Dow/NNP
Jones/NNP
Capital/NNP
Markets/NNPS
Report/NNP
:/:
Blockbuster/NNP
Entertainment/NNP
Corp./NNP
--/:
$/$
300/CD
million/CD
redemption/NN
amount/NN
zero-coupon/NN
convertible/JJ
notes/NNS
,/,
also/RB
known/VBN
as/IN
liquid/NN
yield/NN
option/NN
notes/NNS
,/,
due/JJ
Nov./NNP
1/CD
,/,
2004/CD
,/,
priced/VBN
at/IN
308.32/CD
to/TO
yield/VB
at/IN
maturity/NN
8/CD
%/NN
./.
The/DT
notes/NNS
are/VBP
zero-coupon/NN
securities/NNS
and/CC
will/MD
not/RB
pay/VB
interest/NN
periodically/RB
./.
The/DT
size/NN
of/IN
the/DT
offering/NN
was/VBD
increased/VBN
from/IN
the/DT
originally/RB
planned/VBN
$/$
250/CD
million/CD
redemption/NN
amount/NN
The/DT
notes/NNS
are/VBP
convertible/JJ
into/IN
common/JJ
stock/NN
of/IN
Blockbuster/NNP
Entertainment/NNP
at/IN
$/$
22.26/CD
a/DT
share/NN
,/,
representing/VBG
a/DT
12/CD
%/NN
conversion/NN
premium/NN
over/IN
yesterday/NN
's/POS
closing/NN
price/NN
./.
Rated/VBN
Ba-3/JJ
by/IN
Moody/NNP
's/POS
Investors/NNPS
Service/NNP
Inc./NNP
and/CC
single-B-plus/JJ
by/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NNP
,/,
the/DT
issue/NN
will/MD
be/VB
sold/VBN
through/IN
Merrill/NNP
Lynch/NNP
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Markets/NNPS
./.
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
--/:
$/$
200/CD
million/CD
of/IN
8.4/CD
%/NN
notes/NNS
due/JJ
Nov./NNP
1/CD
,/,
2019/CD
,/,
priced/VBN
at/IN
99.771/CD
to/TO
yield/VB
8.457/CD
%/NN
./.
The/DT
issue/NN
,/,
which/WDT
is/VBZ
puttable/JJ
back/RB
to/TO
the/DT
company/NN
Nov./NNP
1/CD
,/,
1994/CD
,/,
was/VBD
priced/VBN
at/IN
a/DT
spread/NN
of/IN
70/CD
basis/NN
points/NNS
above/IN
the/DT
Treasury/NNP
's/POS
five-year/JJ
note/NN
./.
Rated/VBN
single-A-1/JJ
by/IN
Moody/NNP
's/POS
and/CC
single-A-plus/JJ
by/IN
S&P/NNP
,/,
the/DT
noncallable/JJ
issue/NN
will/MD
be/VB
sold/VBN
through/IN
underwriters/NNS
led/VBN
by/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNPS
./.
Boise/NNP
Cascade/NNP
Corp./NNP
--/:
$/$
150/CD
million/CD
of/IN
9.45/CD
%/NN
debentures/NNS
due/JJ
2009/CD
,/,
priced/VBN
at/IN
99.7/CD
./.
ITT/NNP
Financial/NNP
Corp./NNP
--/:
$/$
150/CD
million/CD
of/IN
8.35/CD
%/NN
subordinated/JJ
notes/NNS
due/JJ
Nov./NNP
1/CD
,/,
2004/CD
,/,
priced/VBN
at/IN
99.85/CD
to/TO
yield/VB
8.387/CD
%/NN
./.
The/DT
noncallable/JJ
issue/NN
,/,
which/WDT
is/VBZ
puttable/JJ
back/RB
to/TO
the/DT
company/NN
Nov./NNP
1/CD
,/,
1994/CD
,/,
was/VBD
priced/VBN
at/IN
a/DT
spread/NN
of/IN
62.5/CD
basis/NN
points/NNS
above/IN
the/DT
Treasury/NNP
's/POS
five-year/JJ
note/NN
./.
Rated/VBN
single-A-2/JJ
by/IN
Moody/NNP
's/POS
and/CC
single-A/JJ
by/IN
S&P/NNP
,/,
the/DT
issue/NN
will/MD
be/VB
sold/VBN
through/IN
underwriters/NNS
led/VBN
by/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNPS
./.
ITT/NNP
Financial/NNP
is/VBZ
a/DT
subsidiary/NN
of/IN
ITT/NNP
Corp/NNP
./.
Arco/NNP
Chemical/NNP
Co./NNP
--/:
$/$
100/CD
million/CD
of/IN
9.35/CD
%/NN
debentures/NNS
due/JJ
Nov./NNP
1/CD
,/,
2019/CD
,/,
priced/VBN
at/IN
98.518/CD
to/TO
yield/VB
9.50/CD
%/NN
./.
Rated/VBN
single-A-2/JJ
by/IN
Moody/NNP
's/POS
and/CC
single-A/JJ
by/IN
S&P/NNP
,/,
the/DT
issue/NN
will/MD
be/VB
sold/VBN
through/IN
underwriters/NNS
led/VBN
by/IN
Salomon/NNP
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./.
Trinity/NNP
River/NNP
Authority/NNP
,/,
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--/:
$/$
134.8/CD
million/CD
of/IN
regional/JJ
wastewater/NN
system/NN
improvement/NN
revenue/NN
bonds/NNS
,/,
Series/NNS
1989/CD
,/,
due/JJ
1992-2000/CD
,/,
2009/CD
and/CC
2016/CD
,/,
through/IN
a/DT
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
group/NN
./.
The/DT
bonds/NNS
,/,
insured/VBN
and/CC
rated/VBN
triple-a/JJ
by/IN
Moody/NNP
's/POS
and/CC
S&P/NNP
,/,
were/VBD
priced/VBN
to/TO
yield/VB
from/IN
6.30/CD
%/NN
in/IN
1992/CD
to/TO
7.25/CD
%/NN
in/IN
2016/CD
./.
There/EX
are/VBP
$/$
46,245,000/CD
of/IN
7/CD
%/NN
term/NN
bonds/NNS
due/JJ
2009/CD
,/,
priced/VBN
at/IN
97/CD
7\/8/CD
to/TO
yield/VB
7.20/CD
%/NN
,/,
and/CC
$/$
64.9/CD
million/CD
of/IN
7.1/CD
%/NN
term/NN
bonds/NNS
due/JJ
2016/CD
,/,
priced/VBN
at/IN
98/CD
1\/4/CD
to/TO
yield/VB
7.25/CD
%/NN
./.
Serial/JJ
bonds/NNS
,/,
which/WDT
all/DT
carry/VBP
7/CD
%/JJ
coupons/NNS
,/,
are/VBP
priced/VBN
to/TO
yield/VB
from/IN
6.30/CD
%/NN
in/IN
1992/CD
to/TO
7/CD
%/NN
in/IN
2000/CD
./.
Beverly/NNP
Hills/NNP
,/,
Calif./NNP
--/:
$/$
116,385,000/CD
of/IN
refunding/VBG
certificates/NNS
of/IN
participation/NN
civic/JJ
center/NN
improvements/NNS
project/NN
)/)
,/,
due/JJ
1990-2004/CD
,/,
2007/CD
,/,
2016/CD
and/CC
2019/CD
,/,
tentatively/RB
priced/VBN
by/IN
a/DT
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
group/NN
to/TO
yield/VB
from/IN
6/CD
%/NN
in/IN
1990/CD
to/TO
7.19/CD
%/NN
in/IN
2016/CD
./.
Serial/JJ
certificates/NNS
yield/VBP
to/TO
7.10/CD
%/NN
in/IN
2004/CD
./.
They/PRP
are/VBP
all/DT
priced/VBN
at/IN
par/JJ
./.
There/EX
are/VBP
$/$
12,915,000/CD
of/IN
7/CD
%/NN
term/NN
certificates/NNS
due/JJ
2007/CD
,/,
priced/VBN
to/TO
yield/VB
7.15/CD
%/NN
./.
The/DT
$/$
58.9/CD
million/CD
of/IN
7/CD
%/NN
certificates/NNS
due/JJ
2016/CD
carry/VBP
the/DT
issue/NN
's/POS
high/JJ
yield/NN
,/,
priced/VBN
at/IN
97/CD
3\/4/CD
to/TO
yield/VB
7.19/CD
%/NN
./.
There/EX
are/VBP
also/RB
$/$
29/CD
million/CD
of/IN
6/CD
3\/4/CD
%/NN
certificates/NNS
due/JJ
2019/CD
,/,
priced/VBN
to/TO
yield/VB
7.10/CD
%/NN
./.
The/DT
bonds/NNS
are/VBP
rated/VBN
single-A-1/JJ
by/IN
Moody/NNP
's/POS
and/CC
double-A-minus/JJ
by/IN
S&P/NNP
,/,
according/VBG
to/TO
the/DT
lead/JJ
underwriter/NN
./.
Michigan/NNP
--/:
$/$
80/CD
million/CD
of/IN
first/JJ
general/JJ
obligation/NN
bonds/NNS
Series/NN
1989/CD
environmental/JJ
protection/NN
program/NN
and/CC
recreation/NN
program/NN
a/DT
Shearson/NNP
Lehman/NNP
Hutton/NNP
group/NN
to/TO
yield/VB
from/IN
6/CD
%/NN
for/IN
current/JJ
interest/NN
bonds/NNS
due/JJ
1990/CD
to/TO
7.25/CD
%/NN
for/IN
convertible/JJ
capital/NN
appreciation/NN
bonds/NNS
./.
Environmental/JJ
protection/NN
program/NN
current/JJ
interest/NN
bonds/NNS
are/VBP
due/JJ
1995-1999/CD
,/,
2005/CD
and/CC
2009/CD
./.
They/PRP
are/VBP
tentatively/RB
priced/VBN
to/TO
yield/VB
from/IN
6.45/CD
%/NN
in/IN
1995/CD
to/TO
7.10/CD
%/NN
in/IN
2009/CD
./.
The/DT
standard/JJ
capital/NN
appreciation/NN
bonds/NNS
in/IN
the/DT
issue/NN
,/,
due/JJ
1998-2011/CD
,/,
yield/NN
to/TO
maturity/NN
from/IN
6.70/CD
%/NN
in/IN
1998/CD
to/TO
7.10/CD
%/NN
in/IN
2009-2011/CD
./.
The/DT
convertible/JJ
capital/NN
appreciation/NN
bonds/NNS
all/DT
yield/VBP
7.25/CD
%/NN
to/TO
their/PRP$
respective/JJ
conversion/NN
dates/NNS
,/,
when/WRB
they/PRP
become/VBP
7/CD
1\/4/CD
%/NN
current/JJ
interest-bearing/JJ
bonds/NNS
until/IN
maturity/NN
./.
Convertible/JJ
capital/NN
appreciation/NN
bonds/NNS
with/IN
a/DT
final/JJ
stated/VBN
maturity/NN
of/IN
Nov./NNP
15/CD
,/,
2014/CD
,/,
convert/VBP
Nov./NNP
15/CD
,/,
1999/CD
./.
Convertible/JJ
capital/NN
appreciation/NN
bonds/NNS
with/IN
a/DT
final/JJ
stated/VBN
maturity/NN
of/IN
Nov./NNP
15/CD
,/,
2019/CD
,/,
convert/VBP
Nov./NNP
15/CD
,/,
2004/CD
./.
Recreation/NN
program/NN
current/JJ
interest/NN
bonds/NNS
are/VBP
due/JJ
1990-1995/CD
,/,
and/CC
are/VBP
priced/VBN
to/TO
yield/VB
from/IN
6/CD
%/NN
in/IN
1990/CD
to/TO
6.45/CD
%/NN
in/IN
1995/CD
./.
All/DT
of/IN
the/DT
bonds/NNS
are/VBP
rated/VBN
single-A-1/JJ
by/IN
Moody/NNP
's/POS
and/CC
double-A/JJ
by/IN
S&P/NNP
./.
Federal/NNP
National/NNP
Mortgage/NNP
Association/NNP
--/:
$/$
300/CD
million/CD
of/IN
Remic/NNP
securities/NNS
in/IN
10/CD
classes/NNS
through/IN
Goldman/NNP
Sachs/NNP
./.
The/DT
issue/NN
is/VBZ
backed/VBN
by/IN
Fannie/NNP
Mae/NNP
9/CD
%/NN
securitiess/NN
./.
The/DT
offering/NN
is/VBZ
Fannie/NNP
Mae/NNP
's/POS
Series/NN
1989-88/CD
./.
Fuji/NNP
Heavy/NNP
Industries/NNPS
Ltd/NNP
./.
Japan/NNP
$/$
300/CD
million/CD
of/IN
8/CD
3\/4/CD
%/NN
bonds/NNS
due/JJ
Nov./NNP
17/CD
,/,
1999/CD
,/,
priced/VBN
at/IN
101/CD
3\/8/CD
to/TO
yield/VB
8.85/CD
%/NN
less/CC
full/JJ
fees/NNS
annually/RB
,/,
via/IN
Daiwa/NNP
Europe/NNP
Ltd/NNP
./.
Guarantee/NN
by/IN
Industrial/NNP
Bank/NNP
of/IN
Japan/NNP
./.
Fees/NNS
2/CD
./.
European/NNP
Investment/NNP
Bank/NNP
agency/NN
$/$
150/CD
million/CD
of/IN
8/CD
1\/2/CD
%/NN
bonds/NNS
due/JJ
Nov./NNP
22/CD
,/,
1999/CD
,/,
priced/VBN
at/IN
99.75/CD
to/TO
yield/VB
8.54/CD
%/NN
at/IN
reoffered/VBN
price/NN
,/,
via/IN
lead/NN
manager/NN
JP/NNP
Morgan/NNP
Securities/NNPS
Ltd/NNP
./.
Nippon/NNP
Meat/NNP
Packers/NNPS
Inc/NNP
./.
Japan/NNP
$/$
200/CD
million/CD
of/IN
bonds/NNS
due/JJ
Nov./NNP
9/CD
,/,
1993/CD
,/,
with/IN
equity-purchase/JJ
warrants/NNS
,/,
indicating/VBG
a/DT
3/CD
7\/8/CD
%/NN
coupon/NN
at/IN
par/JJ
,/,
via/IN
Yamaichi/NNP
International/NNP
Europe/NNP
./.
Each/DT
$/$
5,000/CD
bond/NN
carries/VBZ
a/DT
warrant/NN
exercisable/JJ
Nov./NNP
24/CD
,/,
1989/CD
,/,
through/IN
Oct./NNP
29/CD
,/,
1993/CD
,/,
to/TO
buy/VB
company/NN
shares/NNS
at/IN
an/DT
expected/JJ
premium/NN
of/IN
2/CD
1\/2/CD
%/NN
to/TO
the/DT
closing/NN
share/NN
price/NN
when/WRB
terms/NNS
are/VBP
fixed/VBN
Oct./NNP
31/CD
./.
GMAC/NNP
Canada/NNP
Ltd/NNP
./.
U.S./NNP
parent/NN
150/CD
million/CD
Canadian/JJ
dollars/NNS
of/IN
floating-rate/NN
notes/NNS
due/JJ
November/NNP
1996/CD
,/,
via/IN
Banque/NNP
Paribas/NNP
Capital/NNP
Markets/NNPS
Ltd/NNP
./.
Coupon/NN
,/,
paid/VBN
monthly/RB
,/,
is/VBZ
one-month/JJ
Canadian/JJ
bankers/NNS
acceptance/NN
rate/NN
./.
Guarantee/NN
by/IN
General/NNP
Motors/NNPS
Acceptance/NNP
Corp/NNP
./.
Call/VB
at/IN
par/JJ
after/IN
two/CD
years/NNS
and/CC
thereafter/RB
at/IN
par/JJ
every/DT
six/CD
months/NNS
./.
Swedish/NNP
Export/NNP
Credit/NNP
Corp./NNP
--/:
#/#
100/CD
million/CD
of/IN
12/CD
%/NN
bonds/NNS
due/JJ
June/NNP
15/CD
,/,
1994/CD
,/,
priced/VBN
at/IN
101/CD
5\/8/CD
to/TO
yield/VB
12.39/CD
%/NN
annually/RB
less/CC
full/JJ
fees/NNS
,/,
via/IN
Samuel/NNP
Montagu/NNP
&/CC
Co/NNP
./.
Fees/NNS
1/CD
7\/8/CD
./.
Skopbank/NNP
Finland/NNP
10/CD
billion/CD
yen/NNS
of/IN
5/CD
3\/4/CD
%/NN
bonds/NNS
due/JJ
Nov./NNP
20/CD
,/,
1992/CD
,/,
priced/VBN
at/IN
101/CD
3\/8/CD
to/TO
yield/VB
5/CD
3\/4/CD
%/NN
less/CC
full/JJ
fees/NNS
,/,
via/IN
IBJ/NNP
International/NNP
./.
Fees/NNS
1/CD
3\/8/CD
./.
Hokkaido/NNP
Takushoku/NNP
Bank/NNP
Japan/NNP
300/CD
million/CD
Swiss/NNP
francs/NNS
of/IN
notes/NNS
and/CC
bonds/NNS
due/JJ
March/NNP
31/CD
,/,
1994/CD
,/,
with/IN
fixed/JJ
0.375/CD
%/NN
coupon/NN
at/IN
par/JJ
via/IN
Swiss/NNP
Bank/NNP
Corp/NNP
./.
Put/VB
option/NN
March/NNP
31/CD
,/,
1992/CD
,/,
at/IN
107/CD
3\/4/CD
to/TO
yield/VB
a/DT
fixed/JJ
3.52/CD
%/NN
./.
The/DT
issue/NN
is/VBZ
in/IN
two/CD
parts/NNS
:/:
200/CD
million/CD
Swiss/JJ
francs/NNS
of/IN
privately/RB
placed/VBN
notes/NNS
,/,
100/CD
million/CD
Swiss/JJ
francs/NNS
of/IN
publicly/RB
listed/JJ
bonds/NNS
./.
Indentical/JJ
conditions/NNS
for/IN
the/DT
two/CD
parts/NNS
./.
Other/JJ
terms/NNS
to/TO
be/VB
fixed/VBN
Nov./NNP
1/CD
./.
Kingdom/NNP
of/IN
Morocco/NNP
--/:
$/$
208/CD
million/CD
redemption/NN
amount/NN
zero-coupon/NN
government/NN
trust/NN
certificates/NNS
,/,
with/IN
maturities/NNS
stretching/VBG
from/IN
May/NNP
15/CD
,/,
1990/CD
,/,
to/TO
Nov./NNP
15/CD
,/,
1999/CD
,/,
priced/VBN
at/IN
yields/NNS
ranging/VBG
from/IN
8.23/CD
%/NN
to/TO
8.43/CD
%/NN
./.
All/PDT
the/DT
issues/NNS
were/VBD
priced/VBN
at/IN
a/DT
spread/NN
of/IN
37/CD
basis/NN
points/NNS
above/IN
the/DT
Treasury/NNP
strips/NNS
with/IN
similar/JJ
maturities/NNS
./.
Proceeds/NNS
from/IN
the/DT
offering/VBG
are/VBP
about/IN
$/$
160.4/CD
million/CD
./.
Rated/VBN
triple-A/JJ
by/IN
Moody/NNP
's/POS
and/CC
S&P/NNP
,/,
the/DT
issue/NN
will/MD
be/VB
sold/VBN
through/IN
underwriters/NNS
led/VBN
by/IN
BT/NNP
Securities/NNPS
,/,
a/DT
subsidiary/NN
of/IN
Bankers/NNPS
Trust/NNP
New/NNP
York/NNP
Corp/NNP
./.
At/IN
a/DT
time/NN
when/WRB
Jon/NNP
Levy/NNP
should/MD
be/VB
planning/VBG
the/DT
biggest/JJS
spring/NN
season/NN
in/IN
his/PRP$
dress/NN
company/NN
's/POS
17/CD
years/NNS
,/,
his/PRP$
work/NN
day/NN
is/VBZ
studded/VBN
with/IN
intense/JJ
moments/NNS
of/IN
concern/NN
about/IN
one/CD
of/IN
his/PRP$
biggest/JJS
customers/NNS
,/,
Campeau/NNP
Corp/NNP
./.
``/``
The/DT
dress/NN
business/NN
has/VBZ
always/RB
been/VBN
a/DT
gamble/NN
,/,
but/CC
it/PRP
's/VBZ
never/RB
been/VBN
like/IN
this/DT
,/,
''/''
says/VBZ
Mr./NNP
Levy/NNP
,/,
president/NN
of/IN
St./NNP
Gillian/NNP
Group/NNP
Ltd./NNP
,/,
which/WDT
has/VBZ
become/VBN
a/DT
hot/JJ
name/NN
thanks/NNS
to/TO
a/DT
campaign/NN
of/IN
sexy/JJ
TV/NN
commercials/NNS
./.
Every/DT
day/NN
,/,
Mr./NNP
Levy/NNP
checks/VBZ
orders/NNS
from/IN
Campeau/NN
department/NN
store/NN
chains/NNS
,/,
trying/VBG
to/TO
guess/VB
if/IN
he/PRP
will/MD
be/VB
paid/VBN
./.
``/``
I/PRP
'm/VBP
now/RB
monitoring/VBG
every/DT
major/JJ
account/NN
./.
''/''
Campeau/NNP
,/,
owner/NN
of/IN
such/JJ
retailers/NNS
as/IN
Bloomingdale/NNP
's/POS
,/,
Bon/NNP
Marche/NNP
,/,
and/CC
Jordan/NNP
Marsh/NNP
,/,
sidestepped/VBD
financial/JJ
collapse/NN
last/JJ
month/NN
after/IN
an/DT
emergency/NN
$/$
250/CD
million/CD
loan/NN
from/IN
Olympia/NNP
&/CC
York/NNP
Developments/NNPS
Ltd./NNP
,/,
a/DT
Canadian/NNP
developer/NN
and/CC
a/DT
major/JJ
shareholder/NN
in/IN
Campeau/NNP
./.
The/DT
need/NN
for/IN
the/DT
loan/NN
surprised/VBD
many/JJ
analysts/NNS
and/CC
bond/NN
holders/NNS
who/WP
had/VBD
been/VBN
told/VBN
at/IN
the/DT
company/NN
's/POS
annual/JJ
meeting/NN
in/IN
July/NNP
that/IN
there/EX
were/VBD
n't/RB
any/DT
major/JJ
problems/NNS
ahead/RB
./.
The/DT
risk/NN
of/IN
doing/VBG
business/NN
with/IN
Campeau/NNP
's/POS
Federated/NNP
and/CC
Allied/NNP
department/NN
store/NN
chains/NNS
is/VBZ
about/IN
to/TO
increase/VB
greatly/RB
,/,
not/RB
only/RB
for/IN
Mr./NNP
Levy/NNP
but/CC
for/IN
hundreds/NNS
of/IN
other/JJ
small/JJ
apparel/NN
makers/NNS
,/,
button/NN
suppliers/NNS
,/,
trucking/NN
firms/NNS
and/CC
fabric/NN
houses/NNS
./.
Next/JJ
week/NN
,/,
the/DT
country/NN
's/POS
top/JJ
designers/NNS
and/CC
manufacturers/NNS
will/MD
begin/VB
showing/VBG
fashions/NNS
for/IN
spring/NN
1990/CD
,/,
the/DT
second/JJ
most/RBS
important/JJ
selling/NN
season/NN
of/IN
the/DT
year/NN
./.
And/CC
as/IN
the/DT
applause/NN
dies/VBZ
down/RB
in/IN
showrooms/NNS
along/IN
Seventh/NNP
Avenue/NNP
and/CC
Broadway/NNP
,/,
stylishly/RB
clad/JJ
Campeau/NNP
buyers/NNS
will/MD
begin/VB
writing/VBG
orders/NNS
./.
Orders/NNS
from/IN
Campeau/NNP
retailers/NNS
used/VBD
to/TO
be/VB
cause/NN
for/IN
celebration/NN
./.
This/DT
is/VBZ
no/DT
longer/RB
true/JJ
because/RB
of/IN
Campeau/NNP
's/POS
massive/JJ
debt/NN
load/NN
./.
``/``
It/PRP
's/VBZ
all/DT
anybody/NN
wants/VBZ
to/TO
talk/VB
about/IN
,/,
''/''
says/VBZ
Richard/NNP
Posner/NNP
,/,
executive/NN
vice/NN
president/NN
for/IN
Credit/NNP
Exchange/NNP
Inc./NNP
,/,
a/DT
leading/VBG
credit/NN
service/NN
./.
``/``
People/NNS
wonder/VBP
what/WP
's/VBZ
going/VBG
to/TO
happen/VB
next/RB
./.
''/''
Many/JJ
manufacturers/NNS
are/VBP
worried/JJ
about/IN
being/VBG
paid/VBN
for/IN
merchandise/NN
already/RB
shipped/VBN
to/TO
Campeau/NNP
stores/NNS
./.
But/CC
those/DT
dollars/NNS
at/IN
risk/NN
pale/VBP
in/IN
comparison/NN
to/TO
the/DT
investment/NN
required/VBN
to/TO
make/VB
and/CC
ship/VB
spring/NN
goods/NNS
to/TO
Campeau/NNP
stores/NNS
./.
``/``
The/DT
few/JJ
million/CD
dollars/NNS
I/PRP
could/MD
lose/VB
today/NN
is/VBZ
nothing/NN
against/IN
what/WP
I/PRP
could/MD
lose/VB
on/IN
the/DT
spring/NN
line/NN
,/,
''/''
says/VBZ
Mr./NNP
Levy/NNP
,/,
who/WP
estimates/VBZ
that/IN
Campeau/NNP
stores/NNS
will/MD
sell/VB
$/$
25/CD
million/CD
worth/NN
of/IN
his/PRP$
clothes/NNS
this/DT
year/NN
./.
``/``
I/PRP
'm/VBP
buying/VBG
fabric/NN
right/RB
now/RB
for/IN
clothes/NNS
which/WDT
I/PRP
may/MD
not/RB
be/VB
paid/VBN
for/IN
until/IN
April/NNP
or/CC
May/NNP
./.
What/WP
happens/VBZ
to/TO
me/PRP
if/IN
Campeau/NNP
collapses/VBZ
between/IN
now/RB
and/CC
then/RB
?/.
''/''
Some/DT
credit/NN
concerns/NNS
,/,
such/JJ
as/IN
Bernard/NNP
Sands/NNP
Credit/NNP
Consultants/NNPS
Inc./NNP
,/,
have/VBP
told/VBN
clients/NNS
not/RB
to/TO
ship/VB
anything/NN
to/TO
Federated/NNP
or/CC
Allied/NNP
stores/NNS
on/IN
credit/NN
./.
``/``
This/DT
is/VBZ
especially/RB
true/JJ
for/IN
spring/NN
merchandise/NN
,/,
''/''
says/VBZ
Jim/NNP
Rindos/NNP
,/,
credit/NN
manager/NN
at/IN
Bernard/NNP
Sands/NNP
./.
``/``
Campeau/NNP
has/VBZ
too/RB
much/JJ
debt/NN
./.
''/''
Other/JJ
credit/NN
houses/NNS
,/,
such/JJ
as/IN
Credit/NNP
Exchange/NNP
and/CC
Solo/NNP
Credit/NNP
Service/NNP
Corp./NNP
,/,
are/VBP
suggesting/VBG
that/IN
their/PRP$
clients/NNS
study/VB
each/DT
order/NN
before/IN
shipping/NN
./.
``/``
Payments/NNS
are/VBP
good/JJ
right/RB
now/RB
,/,
but/CC
we/PRP
are/VBP
n't/RB
recommending/VBG
any/DT
long-term/JJ
lines/NNS
of/IN
credit/NN
,/,
''/''
says/VBZ
Richard/NNP
Hastings/NNP
,/,
a/DT
retail/JJ
credit/NN
analyst/NN
,/,
referring/VBG
to/TO
credit/NN
lines/NNS
which/WDT
make/VBP
inventory/NN
purchases/NNS
automatic/JJ
./.
``/``
The/DT
Campeau/NNP
situation/NN
is/VBZ
a/DT
little/RB
uncertain/JJ
and/CC
very/RB
difficult/JJ
to/TO
analyze/VB
./.
''/''
Because/IN
of/IN
those/DT
concerns/NNS
,/,
some/DT
manufacturers/NNS
say/VBP
they/PRP
will/MD
ask/VB
for/IN
letters/NNS
of/IN
credit/NN
before/IN
shipping/VBG
spring/NN
merchandise/NN
./.
``/``
We/PRP
're/VBP
being/VBG
paid/VBN
today/NN
,/,
but/CC
we/PRP
're/VBP
worried/JJ
about/IN
tomorrow/NN
and/CC
will/MD
want/VB
''/''
letters/NNS
of/IN
credit/NN
,/,
says/VBZ
the/DT
sales/NNS
director/NN
at/IN
one/CD
major/JJ
dress/NN
maker/NN
who/WP
asked/VBD
not/RB
to/TO
be/VB
identified/VBN
./.
Howard/NNP
Bloom/NNP
,/,
president/NN
of/IN
the/DT
dress/NN
firm/NN
Chetta/NNP
B/NNP
Inc./NNP
,/,
says/VBZ
:/:
``/``
It/PRP
's/VBZ
big/JJ
time/NN
chaos/NN
today/NN
./.
I/PRP
'm/VBP
going/VBG
to/TO
ship/VB
and/CC
hope/VB
I/PRP
get/VB
paid/VBN
./.
If/IN
I/PRP
need/VBP
to/TO
ask/VB
for/IN
money/NN
up/RB
front/RB
later/RB
,/,
I/PRP
will/MD
./.
''/''
Carol/NNP
Sanger/NNP
,/,
vice/NN
president/NN
,/,
corporate/JJ
communications/NNS
at/IN
Campeau/NNP
,/,
says/VBZ
that/IN
all/DT
of/IN
the/DT
Federated/NNP
and/CC
Allied/NNP
chains/NNS
are/VBP
paying/VBG
their/PRP$
bills/NNS
in/IN
a/DT
timely/JJ
manner/NN
./.
``/``
They/PRP
continue/VBP
to/TO
pay/VB
their/PRP$
bills/NNS
and/CC
will/MD
do/VB
so/RB
,/,
''/''
says/VBZ
Ms./NNP
Sanger/NNP
./.
``/``
We/PRP
're/VBP
confident/JJ
we/PRP
'll/MD
be/VB
paying/VBG
our/PRP$
bills/NNS
for/IN
spring/NN
merchandise/NN
as/RB
well/RB
./.
''/''
Typically/RB
,/,
manufacturers/NNS
are/VBP
paid/VBN
10/CD
days/NNS
after/IN
the/DT
month/NN
in/IN
which/WDT
they/PRP
ship/VBP
./.
If/IN
goods/NNS
are/VBP
shipped/VBN
to/TO
Bloomingdale/NNP
's/POS
between/IN
Oct./NNP
1/CD
and/CC
Oct./NNP
20/CD
,/,
manufacturers/NNS
expect/VBP
to/TO
be/VB
paid/VBN
by/IN
Nov./NNP
10/CD
./.
But/CC
manufacturers/NNS
now/RB
buying/VBG
fabric/NN
for/IN
spring/NN
season/NN
goods/NNS
wo/MD
n't/RB
be/VB
paid/VBN
until/IN
March/NNP
,/,
April/NNP
or/CC
even/RB
May/NNP
./.
Some/DT
in/IN
the/DT
market/NN
question/NN
whether/IN
Campeau/NN
will/MD
be/VB
in/IN
a/DT
position/NN
to/TO
pay/VB
bills/NNS
at/IN
that/DT
time/NN
./.
``/``
Everybody/NN
is/VBZ
worried/VBN
about/IN
the/DT
possibility/NN
of/IN
cancellations/NNS
,/,
''/''
says/VBZ
Kurt/NNP
Barnard/NNP
,/,
publisher/NN
of/IN
Barnard/NNP
's/POS
Retail/NNP
Marketing/NNP
Report/NNP
./.
``/``
The/DT
buyers/NNS
who/WP
work/VBP
for/IN
the/DT
various/JJ
Campeau/NNP
chains/NNS
may/MD
lose/VB
their/PRP$
jobs/NNS
./.
The/DT
stores/NNS
they/PRP
work/VBP
for/IN
may/MD
be/VB
sold/VBN
./.
What/WP
that/WDT
will/MD
mean/VB
for/IN
manufacturers/NNS
is/VBZ
anybody/NN
's/POS
guess/NN
./.
''/''
Campeau/NNP
's/POS
financial/JJ
situation/NN
is/VBZ
complicated/VBN
by/IN
an/DT
estimated/VBN
$/$
1.23/CD
billion/CD
in/IN
debt/NN
due/JJ
next/JJ
spring/NN
./.
This/DT
includes/VBZ
a/DT
working/NN
capital/NN
facility/NN
for/IN
Allied/NNP
Stores/NNPS
of/IN
$/$
350/CD
million/CD
that/WDT
matures/VBZ
March/NNP
15/CD
,/,
1990/CD
,/,
and/CC
an/DT
$/$
800/CD
million/CD
bridge/NN
loan/NN
due/JJ
April/NNP
30/CD
,/,
1990/CD
./.
The/DT
company/NN
has/VBZ
stated/VBN
in/IN
recently/RB
filed/VBN
financial/JJ
documents/NNS
that/IN
it/PRP
anticipates/VBZ
refinancing/VBG
its/PRP$
March/NNP
1990/CD
payments/NNS
./.
In/IN
recent/JJ
months/NNS
,/,
numerous/JJ
retailers/NNS
have/VBP
filed/VBN
for/IN
Chapter/NN
11/CD
bankruptcy/NN
protection/NN
,/,
including/VBG
Bonwit/NNP
Teller/NNP
,/,
B./NNP
Altman/NNP
&/CC
Co./NNP
,/,
and/CC
Miller/NNP
&/CC
Rhoads/NNP
Inc/NNP
./.
Those/DT
filings/NNS
,/,
plus/CC
the/DT
expected/JJ
sale/NN
of/IN
a/DT
number/NN
of/IN
financially/RB
healthy/JJ
chains/NNS
,/,
such/JJ
as/IN
Saks/NNP
Fifth/NNP
Avenue/NNP
,/,
Marshall/NNP
Field/NNP
's/POS
and/CC
Bloomingdale/NNP
's/POS
,/,
have/VBP
added/VBN
to/TO
the/DT
anxiety/NN
./.
``/``
Right/RB
now/RB
,/,
Federated/NNP
owes/VBZ
us/PRP
a/DT
considerable/JJ
amount/NN
of/IN
money/NN
,/,
''/''
says/VBZ
Morris/NNP
Marmalstein/NNP
,/,
president/NN
of/IN
David/NNP
Warren/NNP
Enterprises/NNPS
,/,
a/DT
major/JJ
dress/NN
manufacturer/NN
./.
``/``
We/PRP
expect/VBP
they/PRP
will/MD
be/VB
current/JJ
with/IN
their/PRP$
debts/NNS
by/IN
the/DT
end/NN
of/IN
the/DT
week/NN
,/,
but/CC
we/PRP
are/VBP
considering/VBG
asking/VBG
them/PRP
for/IN
letters/NNS
of/IN
credit/NN
before/IN
we/PRP
take/VBP
more/JJR
orders/NNS
./.
''/''
Mr./NNP
Marmalstein/NNP
adds/VBZ
that/IN
his/PRP$
company/NN
is/VBZ
now/RB
holding/VBG
some/DT
goods/NNS
in/IN
anticipation/NN
of/IN
being/VBG
paid/VBN
in/RB
full/RB
./.
``/``
It/PRP
's/VBZ
become/VBN
a/DT
day-by-day/JJ
business/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
Business/NN
has/VBZ
never/RB
been/VBN
this/DT
tough/JJ
before/RB
./.
Not/RB
only/RB
does/VBZ
your/PRP$
product/NN
have/VB
to/TO
be/VB
excellent/JJ
,/,
but/CC
you/PRP
also/RB
have/VBP
to/TO
be/VB
able/JJ
to/TO
collect/VB
./.
''/''
Other/JJ
manufacturers/NNS
are/VBP
equally/RB
cautious/JJ
./.
Bud/NNP
Konheim/NNP
,/,
president/NN
of/IN
Nicole/NNP
Miller/NNP
Inc./NNP
,/,
says/VBZ
his/PRP$
company/NN
is/VBZ
now/RB
shipping/VBG
only/RB
to/TO
the/DT
flagship/NN
stores/NNS
of/IN
the/DT
Federated/NNP
and/CC
Allied/NNP
chains/NNS
./.
This/DT
limits/VBZ
his/PRP$
financial/JJ
exposure/NN
,/,
he/PRP
says/VBZ
./.
``/``
The/DT
branches/NNS
are/VBP
just/RB
warmed/VBN
over/RP
,/,
empty/JJ
halls/NNS
,/,
''/''
says/VBZ
Mr./NNP
Konheim/NNP
./.
``/``
Why/WRB
should/MD
I/PRP
be/VB
part/NN
of/IN
that/DT
problem/NN
?/.
I/PRP
've/VBP
got/VBN
limited/JJ
production/NN
,/,
and/CC
I/PRP
ca/MD
n't/RB
give/VB
it/PRP
to/TO
underperformers/NNS
./.
''/''
Campeau/NNP
's/POS
Ms./NNP
Sanger/NNP
disputes/VBZ
Mr./NNP
Konheim/NNP
's/POS
comments/NNS
./.
``/``
Many/DT
of/IN
the/DT
branches/NNS
are/VBP
very/RB
lucrative/JJ
,/,
''/''
she/PRP
says/VBZ
./.
``/``
That/DT
's/VBZ
just/RB
nonsense/JJ
./.
''/''
As/IN
for/IN
Mr./NNP
Levy/NNP
at/IN
St./NNP
Gillian/NNP
,/,
he/PRP
says/VBZ
he/PRP
will/MD
maintain/VB
his/PRP$
credit/NN
lines/NNS
with/IN
the/DT
various/JJ
Campeau/NNP
stores/NNS
unless/IN
they/PRP
miss/VBP
a/DT
payment/NN
./.
``/``
If/IN
they/PRP
slip/VBP
for/IN
10/CD
cents/NNS
for/IN
10/CD
minutes/NNS
,/,
I/PRP
'll/MD
stop/VB
,/,
''/''
he/PRP
says/VBZ
./.
Bethlehem/NNP
Steel/NNP
Corp./NNP
,/,
hammered/VBN
by/IN
higher/JJR
costs/NNS
and/CC
lower/JJR
shipments/NNS
to/TO
key/VB
automotive/JJ
and/CC
service-center/NN
customers/NNS
,/,
posted/VBD
a/DT
54/CD
%/NN
drop/NN
in/IN
third-quarter/JJ
profit/NN
./.
Separately/RB
,/,
two/CD
more/JJR
of/IN
the/DT
nation/NN
's/POS
top/JJ
steelmakers/NNS
--/:
Armco/NNP
Inc./NNP
and/CC
National/NNP
Intergroup/NNP
Inc./NNP
--/:
reported/VBD
lower/JJR
operating/NN
earnings/NNS
in/IN
their/PRP$
steel/NN
businesses/NNS
,/,
marking/VBG
what/WP
is/VBZ
generally/RB
believed/VBN
to/TO
be/VB
the/DT
end/NN
of/IN
a/DT
two-year/JJ
boom/NN
in/IN
the/DT
industry/NN
./.
Wall/NNP
Street/NNP
analysts/NNS
expect/VBP
the/DT
disappointing/JJ
trend/NN
to/TO
continue/VB
into/IN
the/DT
fourth/JJ
quarter/NN
and/CC
through/IN
at/IN
least/JJS
the/DT
first/JJ
two/CD
quarters/NNS
of/IN
1990/CD
,/,
when/WRB
the/DT
industry/NN
will/MD
increasingly/RB
see/VB
the/DT
effect/NN
of/IN
price/NN
erosion/NN
in/IN
major/JJ
product/NN
lines/NNS
,/,
such/JJ
as/IN
rolled/JJ
sheet/NN
used/VBN
for/IN
cars/NNS
,/,
appliances/NNS
and/CC
construction/NN
./.
``/``
It/PRP
does/VBZ
n't/RB
bode/VB
well/RB
for/IN
coming/VBG
quarters/NNS
,/,
''/''
said/VBD
John/NNP
Jacobson/NNP
,/,
who/WP
follows/VBZ
the/DT
steel/NN
industry/NN
for/IN
AUS/NNP
Consultants/NNPS
./.
In/IN
fact/NN
,/,
he/PRP
thinks/VBZ
several/JJ
steelmakers/NNS
will/MD
report/VB
actual/JJ
losses/NNS
through/IN
the/DT
third/JJ
quarter/NN
of/IN
1990/CD
./.
Bethlehem/NNP
,/,
the/DT
nation/NN
's/POS
second/RB
largest/JJS
steelmaker/NN
,/,
earned/VBD
$/$
46.9/CD
million/CD
,/,
or/CC
54/CD
cents/NNS
a/DT
share/NN
./.
The/DT
figures/NNS
include/VBP
$/$
15/CD
million/CD
in/IN
costs/NNS
related/JJ
to/TO
a/DT
blast/NN
furnace/NN
outage/NN
and/CC
$/$
8/CD
million/CD
in/IN
losses/NNS
from/IN
unauthorized/JJ
work/NN
outages/NNS
at/IN
the/DT
company/NN
's/POS
coal/NN
operations/NNS
./.
In/IN
the/DT
year-ago/JJ
period/NN
,/,
Bethlehem/NNP
earned/VBD
$/$
101.4/CD
million/CD
,/,
or/CC
$/$
1.27/CD
a/DT
share/NN
,/,
including/VBG
a/DT
$/$
3.8/CD
million/CD
gain/NN
from/IN
early/JJ
retirement/NN
of/IN
debt/NN
./.
Third-quarter/JJ
sales/NNS
dropped/VBD
11/CD
%/NN
to/TO
$/$
1.27/CD
billion/CD
from/IN
$/$
1.43/CD
billion/CD
a/DT
year/NN
ago/RB
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Bethlehem/NNP
shares/NNS
rose/VBD
50/CD
cents/NNS
to/TO
$/$
17.375/CD
./.
Of/IN
all/PDT
the/DT
major/JJ
steelmakers/NNS
,/,
Bethlehem/NNP
would/MD
seem/VB
to/TO
be/VB
the/DT
most/RBS
vulnerable/JJ
to/TO
a/DT
slowdown/NN
./.
It/PRP
has/VBZ
n't/RB
diversified/VBN
beyond/IN
steel/NN
,/,
nor/CC
has/VBZ
it/PRP
linked/VBD
up/RB
with/IN
a/DT
joint/JJ
venture/NN
partner/NN
to/TO
share/VB
costs/NNS
and/CC
risks/NNS
./.
However/RB
,/,
in/IN
spite/NN
of/IN
the/DT
difficult/JJ
industrywide/JJ
environment/NN
of/IN
high/JJ
cost/NN
and/CC
low/JJ
volume/NN
,/,
Bethlehem/NNP
``/``
had/VBD
pretty/RB
good/JJ
earnings/NNS
numbers/NNS
,/,
''/''
said/VBD
Michelle/NNP
Galanter/NNP
Applebaum/NNP
,/,
an/DT
analyst/NN
with/IN
Salomon/NNP
Brothers/NNPS
Inc/NNP
./.
Ms./NNP
Applebaum/NNP
had/VBD
estimated/VBN
third-quarter/JJ
earnings/NNS
of/IN
55/CD
cents/NNS
a/DT
share/NN
,/,
but/CC
said/VBD
the/DT
losses/NNS
for/IN
the/DT
unusual/JJ
items/NNS
were/VBD
larger/JJR
than/IN
expected/VBN
./.
Still/RB
,/,
Bethlehem/NNP
's/POS
core/NN
basic/NN
steel/NN
operations/NNS
experienced/VBD
a/DT
steep/JJ
drop/NN
in/IN
operating/NN
profit/NN
to/TO
$/$
58.6/CD
million/CD
from/IN
$/$
186.4/CD
million/CD
a/DT
year/NN
ago/RB
,/,
when/WRB
the/DT
industry/NN
enjoyed/VBD
strong/JJ
demand/NN
and/CC
pricing/NN
./.
The/DT
company/NN
said/VBD
its/PRP$
shipments/NNS
declined/VBD
as/IN
a/DT
result/NN
of/IN
a/DT
reduction/NN
in/IN
inventories/NNS
by/IN
service/NN
centers/NNS
,/,
a/DT
lackluster/JJ
automotive/JJ
market/NN
and/CC
increasing/VBG
competitive/JJ
pressures/NNS
in/IN
the/DT
construction/NN
market/NN
./.
At/IN
the/DT
same/JJ
time/NN
,/,
production/NN
costs/NNS
,/,
compared/VBN
with/IN
a/DT
year/NN
ago/RB
,/,
were/VBD
boosted/VBN
by/IN
higher/JJR
raw/JJ
material/NN
and/CC
employment/NN
costs/NNS
,/,
which/WDT
resulted/VBD
from/IN
the/DT
company/NN
's/POS
new/JJ
labor/NN
pact/NN
effective/JJ
June/NNP
1/CD
./.
``/``
We/PRP
anticipate/VBP
that/DT
steel/NN
market/NN
conditions/NNS
will/MD
exhibit/VB
a/DT
further/RB
moderate/JJ
decline/NN
in/IN
the/DT
fourth/JJ
quarter/NN
as/IN
the/DT
automotive/JJ
sector/NN
remains/VBZ
weak/JJ
and/CC
customers/NNS
continue/VBP
to/TO
adjust/VB
inventories/NNS
,/,
''/''
said/VBD
Bethlehem/NNP
Chairman/NNP
Walter/NNP
F./NNP
Williams/NNP
./.
He/PRP
noted/VBD
,/,
however/RB
,/,
that/IN
the/DT
company/NN
's/POS
order/NN
entry/NN
has/VBZ
increased/VBN
from/IN
the/DT
low/JJ
levels/NNS
of/IN
the/DT
early/JJ
summer/NN
,/,
following/VBG
the/DT
end/NN
of/IN
labor/NN
negotiations/NNS
./.
Armco/NNP
,/,
hampered/VBN
by/IN
lower/JJR
volume/NN
in/IN
its/PRP$
specialty/NN
steel/NN
business/NN
,/,
said/VBD
third-quarter/JJ
net/JJ
income/NN
dropped/VBD
8/CD
%/NN
to/TO
$/$
33/CD
million/CD
,/,
or/CC
35/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
36/CD
million/CD
,/,
or/CC
39/CD
cents/NNS
a/DT
share/NN
in/IN
the/DT
year-ago/JJ
quarter/NN
./.
Sales/NNS
dropped/VBD
to/TO
$/$
441.1/CD
million/CD
from/IN
$/$
820.4/CD
million/CD
,/,
because/IN
the/DT
company/NN
no/RB
longer/RB
consolidates/VBZ
its/PRP$
Eastern/NNP
Steel/NNP
division/NN
,/,
which/WDT
is/VBZ
now/RB
a/DT
joint/JJ
venture/NN
with/IN
Kawasaki/NNP
Steel/NNP
Corp/NNP
./.
Along/IN
with/IN
reduced/JJ
volume/NN
,/,
analysts/NNS
said/VBD
the/DT
nation/NN
's/POS
fifth/RB
largest/JJS
steelmaker/NN
was/VBD
hurt/VBN
by/IN
holding/VBG
higher-cost/JJ
inventory/NN
when/WRB
raw/JJ
material/NN
costs/NNS
of/IN
such/JJ
key/JJ
products/NNS
as/IN
nickel/NN
dropped/VBD
./.
Operating/NN
profit/NN
dropped/VBD
46/CD
%/NN
in/IN
its/PRP$
specialty/NN
flat-rolled/JJ
steel/NN
segment/NN
./.
Moreover/RB
,/,
the/DT
company/NN
said/VBD
higher/JJR
sales/NNS
and/CC
shipments/NNS
to/TO
service/NN
centers/NNS
from/IN
its/PRP$
Armco/NNP
Steel/NNP
Co./NNP
joint/JJ
venture/NN
failed/VBD
to/TO
offset/VB
weakness/NN
in/IN
the/DT
automotive/JJ
market/NN
,/,
higher/JJR
production/NN
costs/NNS
and/CC
a/DT
poorer/JJR
product/NN
mix/NN
./.
Armco/NNP
shares/NNS
closed/VBD
unchanged/JJ
at/IN
$/$
10.625/CD
in/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
National/NNP
Intergroup/NNP
,/,
which/WDT
owns/VBZ
50/CD
%/NN
of/IN
the/DT
nation/NN
's/POS
sixth/RB
largest/JJS
steelmaker/NN
--/:
National/NNP
Steel/NNP
Corp./NNP
--/:
posted/VBD
net/JJ
income/NN
for/IN
the/DT
fiscal/JJ
second-quarter/NN
of/IN
$/$
8.6/CD
million/CD
,/,
or/CC
33/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
a/DT
net/JJ
loss/NN
of/IN
$/$
50.3/CD
million/CD
./.
Sales/NNS
increased/VBD
in/IN
the/DT
quarter/NN
ended/VBN
Sept./NNP
30/CD
to/TO
$/$
747.8/CD
million/CD
from/IN
$/$
623.5/CD
million/CD
a/DT
year/NN
ago/RB
./.
The/DT
latest/JJS
period/NN
includes/VBZ
gains/NNS
of/IN
$/$
9.1/CD
million/CD
from/IN
early/JJ
retirement/NN
of/IN
debt/NN
and/CC
tax/NN
loss/NN
carry-forward/NN
./.
Last/JJ
year/NN
's/POS
results/NNS
were/VBD
hurt/VBN
by/IN
$/$
41.3/CD
million/CD
in/IN
restructuring/NN
charges/NNS
./.
National/NNP
Intergroup/NNP
stock/NN
closed/VBD
at/IN
$/$
15/CD
,/,
unchanged/JJ
in/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
The/DT
company/NN
noted/VBD
that/DT
its/PRP$
Fox-Meyer/NNP
Drug/NNP
Co./NNP
,/,
Ben/NNP
Franklin/NNP
Stores/NNPS
Inc./NNP
and/CC
Permian/NNP
Corp./NNP
operations/NNS
showed/VBD
improvements/NNS
as/IN
a/DT
result/NN
of/IN
restructuring/NN
moves/NNS
./.
However/RB
,/,
its/PRP$
equity/NN
in/IN
the/DT
net/JJ
income/NN
of/IN
National/NNP
Steel/NNP
declined/VBD
to/TO
$/$
6.3/CD
million/CD
from/IN
$/$
10.9/CD
million/CD
as/IN
a/DT
result/NN
of/IN
softer/JJR
demand/NN
and/CC
lost/VBN
orders/NNS
following/VBG
prolonged/JJ
labor/NN
talks/NNS
and/CC
a/DT
threatened/VBN
strike/NN
./.
National/NNP
Intergroup/NNP
is/VBZ
negotiating/VBG
for/IN
the/DT
sale/NN
of/IN
its/PRP$
50/CD
%/NN
interest/NN
in/IN
National/NNP
Steel/NNP
to/TO
concentrate/VB
more/RBR
fully/RB
on/IN
drug/NN
distribution/NN
operations/NNS
./.
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
said/VBD
it/PRP
agreed/VBD
to/TO
let/VB
Motorola/NNP
Inc./NNP
participate/VB
in/IN
a/DT
semiconductor/NN
research/NN
project/NN
as/IN
part/NN
of/IN
its/PRP$
effort/NN
to/TO
bolster/VB
the/DT
U.S./NNP
semiconductor/NN
industry/NN
./.
IBM/NNP
,/,
which/WDT
made/VBD
the/DT
announcement/NN
at/IN
the/DT
dedication/NN
of/IN
a/DT
research/NN
center/NN
here/RB
,/,
said/VBD
it/PRP
invited/VBD
many/JJ
other/JJ
companies/NNS
to/TO
participate/VB
as/IN
well/RB
,/,
including/VBG
some/DT
from/IN
Europe/NNP
./.
Jack/NNP
Kuehler/NNP
,/,
IBM/NNP
's/POS
president/NN
,/,
said/VBD
IBM/NNP
is/VBZ
also/RB
considering/VBG
letting/VBG
other/JJ
companies/NNS
participate/VB
in/IN
additional/JJ
semiconductor/NN
work/NN
but/CC
declined/VBD
to/TO
be/VB
more/RBR
specific/JJ
./.
IBM/NNP
,/,
which/WDT
said/VBD
a/DT
year/NN
ago/RB
it/PRP
was/VBD
inviting/VBG
companies/NNS
to/TO
participate/VB
in/IN
some/DT
semiconductor/NN
work/NN
,/,
has/VBZ
become/VBN
far/RB
more/RBR
open/JJ
about/IN
its/PRP$
technology/NN
as/IN
it/PRP
has/VBZ
tried/VBN
to/TO
rally/VB
U.S./NNP
industry/NN
to/TO
head/VB
off/RP
the/DT
Japanese/NNPS
,/,
who/WP
now/RB
dominate/VBP
the/DT
market/NN
for/IN
dynamic/JJ
random/JJ
access/NN
memory/NN
chips/NNS
./.
While/IN
IBM/NNP
,/,
Armonk/NNP
,/,
N.Y./NNP
,/,
makes/VBZ
the/DT
bulk/NN
of/IN
the/DT
DRAMs/NNS
it/PRP
uses/VBZ
,/,
it/PRP
does/VBZ
n't/RB
make/VB
the/DT
equipment/NN
needed/VBN
to/TO
produce/VB
those/DT
chips/NNS
./.
And/CC
IBM/NNP
worries/VBZ
that/IN
the/DT
Japanese/NNPS
will/MD
take/VB
over/RP
that/DT
equipment/NN
market/NN
,/,
too/RB
,/,
unless/IN
U.S./NNP
semiconductor/NN
companies/NNS
produce/VBP
enough/JJ
memory/NN
chips/NNS
here/RB
to/TO
keep/VB
U.S./NNP
equipment/NN
makers/NNS
healthy/JJ
./.
Failure/NN
of/IN
U.S./NNP
equipment/NN
makers/NNS
,/,
IBM/NNP
fears/VBZ
,/,
would/MD
leave/VB
it/PRP
dependent/JJ
on/IN
many/JJ
of/IN
the/DT
Japanese/JJ
companies/NNS
that/WDT
compete/VBP
with/IN
it/PRP
in/IN
other/JJ
parts/NNS
of/IN
the/DT
market/NN
./.
IBM/NNP
also/RB
said/VBD
it/PRP
expects/VBZ
to/TO
benefit/VB
from/IN
the/DT
expertise/NN
that/DT
Motorola/NNP
and/CC
other/JJ
companies/NNS
can/MD
bring/VB
to/TO
bear/VB
on/IN
the/DT
difficult/JJ
problems/NNS
involved/VBN
in/IN
semiconductor/NN
manufacturing/NN
./.
IBM/NNP
already/RB
participates/VBZ
in/IN
one/CD
industrywide/JJ
effort/NN
to/TO
improve/VB
semiconductor-manufacturing/NN
techniques/NNS
./.
IBM/NNP
said/VBD
it/PRP
expects/VBZ
industrywide/JJ
efforts/NNS
to/TO
become/VB
prevalent/JJ
because/IN
semiconductor/NN
manufacturing/NN
has/VBZ
become/VBN
so/RB
expensive/JJ
./.
A/DT
state-of-the-art/JJ
plant/NN
cost/VBN
$/$
40/CD
million/CD
in/IN
the/DT
mid-1970s/NNS
but/CC
costs/VBZ
$/$
500/CD
million/CD
today/NN
because/IN
the/DT
technology/NN
is/VBZ
so/RB
complex/JJ
./.
And/CC
IBM/NNP
said/VBD
it/PRP
expects/VBZ
the/DT
costs/NNS
to/TO
continue/VB
climbing/VBG
./.
IBM/NNP
,/,
which/WDT
said/VBD
Motorola/NNP
is/VBZ
paying/VBG
just/RB
a/DT
nominal/JJ
fee/NN
to/TO
cover/VB
the/DT
21-month/JJ
agreement/NN
,/,
acknowledged/VBD
some/DT
companies/NNS
had/VBD
turned/VBN
down/RP
its/PRP$
invitation/NN
to/TO
join/VB
in/RB
./.
But/CC
it/PRP
said/VBD
that/DT
was/VBD
mainly/RB
because/IN
the/DT
project/NN
may/MD
not/RB
bear/VB
fruit/NN
until/IN
the/DT
mid-1990s/NNS
./.
IBM/NNP
said/VBD
it/PRP
thought/VBD
more/JJR
companies/NNS
would/MD
become/VB
interested/JJ
as/IN
the/DT
project/NN
progresses/VBZ
./.
The/DT
project/NN
involving/VBG
Motorola/NNP
concerns/VBZ
a/DT
technique/NN
,/,
called/VBD
X-ray/NN
lithography/NN
,/,
that/WDT
figures/VBZ
to/TO
be/VB
crucial/JJ
to/TO
future/JJ
generations/NNS
of/IN
memory/NN
chips/NNS
./.
Currently/RB
,/,
chips/NNS
are/VBP
produced/VBN
by/IN
shining/VBG
light/NN
through/IN
a/DT
mask/NN
to/TO
produce/VB
an/DT
image/NN
on/IN
the/DT
chip/NN
,/,
much/RB
as/IN
a/DT
camera/NN
produces/VBZ
an/DT
image/NN
on/IN
film/NN
./.
But/CC
details/NNS
on/IN
chips/NNS
must/MD
now/RB
be/VB
extraordinarily/RB
fine/JJ
,/,
and/CC
the/DT
wavelengths/NNS
of/IN
even/JJ
ultraviolet/NN
light/NN
are/VBP
long/JJ
enough/RB
so/IN
that/IN
the/DT
images/NNS
they/PRP
draw/VBP
may/MD
be/VB
too/RB
blurry/JJ
--/:
much/RB
as/IN
someone/NN
using/VBG
a/DT
wide/JJ
paintbrush/NN
could/MD
produce/VB
a/DT
broad/JJ
line/NN
but/CC
would/MD
have/VB
trouble/NN
painting/VBG
a/DT
thin/JJ
one/NN
./.
X-rays/NNS
,/,
by/IN
contrast/NN
,/,
travel/VBP
straighter/RBR
and/CC
can/MD
be/VB
focused/VBN
more/RBR
tightly/RB
than/IN
light/NN
./.
X-rays/NNS
have/VBP
problems/NNS
,/,
too/RB
./.
They/PRP
can/MD
make/VB
the/DT
masks/NNS
brittle/JJ
and/CC
can/MD
pass/VB
through/IN
material/NN
they/PRP
're/VBP
not/RB
supposed/VBN
to/TO
./.
But/CC
,/,
assuming/VBG
those/DT
problems/NNS
can/MD
be/VB
overcome/VBN
,/,
they/PRP
should/MD
allow/VB
for/IN
memory/NN
chips/NNS
that/WDT
could/MD
approach/VB
one/CD
billion/CD
bits/NNS
of/IN
information/NN
--/:
250/CD
times/NNS
as/RB
much/RB
as/IN
is/VBZ
contained/VBN
in/IN
the/DT
four-megabit/JJ
chips/NNS
that/WDT
are/VBP
just/RB
reaching/VBG
the/DT
market/NN
and/CC
a/DT
million/CD
times/NNS
what/WP
was/VBD
possible/JJ
in/IN
the/DT
mid-1970s/NNS
./.
Allied-Signal/NNP
Aerospace/NNP
Co./NNP
received/VBD
a/DT
$/$
65/CD
million/CD
contract/NN
to/TO
outfit/VB
Continental/NNP
Airlines/NNPS
'/POS
393/CD
planes/NNS
with/IN
the/DT
Bendix\/King/NNP
Traffic/NNP
Alert/NNP
and/CC
Collision/NNP
Avoidance/NNP
System/NNP
./.
The/DT
airborne/JJ
system/NN
operates/VBZ
independent/JJ
of/IN
ground-based/JJ
radar/NN
systems/NNS
,/,
informing/VBG
pilots/NNS
of/IN
nearby/JJ
aircraft/NN
,/,
Allied-Signal/NNP
said/VBD
./.
The/DT
system/NN
also/RB
provides/VBZ
course-correction/NN
advisories/NNS
./.
Allied-Signal/NNP
is/VBZ
a/DT
unit/NN
of/IN
Allied-Signal/NNP
Inc./NNP
,/,
a/DT
manufacturer/NN
with/IN
interests/NNS
in/IN
aerospace/NN
,/,
automotive/JJ
products/NNS
and/CC
engineered/JJ
materials/NNS
./.
Continental/NNP
Airlines/NNPS
is/VBZ
a/DT
unit/NN
of/IN
Texas/NNP
Air/NNP
Corp./NNP
,/,
Houston/NNP
./.
In/IN
a/DT
stunning/JJ
shift/NN
in/IN
direction/NN
,/,
Provigo/NNP
Inc./NNP
said/VBD
it/PRP
will/MD
sell/VB
all/DT
its/PRP$
non-food/JJ
operations/NNS
to/TO
concentrate/VB
solely/RB
on/IN
its/PRP$
retail/NN
and/CC
wholesale/JJ
grocery/NN
business/NN
./.
The/DT
non-food/JJ
operations/NNS
accounted/VBD
for/IN
about/IN
27/CD
%/NN
of/IN
Provigo/NNP
's/POS
7.38/CD
billion/CD
Canadian/JJ
dollars/NNS
US$/$
6.3/CD
billion/CD
sales/NNS
in/IN
the/DT
latest/JJS
fiscal/JJ
year/NN
./.
In/IN
a/DT
related/JJ
move/NN
,/,
Pierre/NNP
Lortie/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/NN
,/,
resigned/VBD
./.
Mr./NNP
Lortie/NNP
joined/VBD
Provigo/NNP
in/IN
1985/CD
and/CC
spearheaded/VBD
the/DT
company/NN
's/POS
drive/NN
to/TO
grow/VB
outside/IN
its/PRP$
traditional/JJ
food/NN
business/NN
./.
He/PRP
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
Bertin/NNP
Nadeau/NNP
,/,
newly/RB
appointed/VBN
chairman/NN
and/CC
interim/JJ
chief/JJ
executive/NN
of/IN
Provigo/NNP
,/,
would/MD
n't/RB
say/VB
if/IN
Mr./NNP
Lortie/NNP
was/VBD
asked/VBN
to/TO
leave/VB
./.
``/``
Mr./NNP
Lortie/NNP
felt/VBD
less/RBR
pertinent/JJ
,/,
''/''
Mr./NNP
Nadeau/NNP
said/VBD
,/,
given/VBN
the/DT
decision/NN
to/TO
dump/VB
Provigo/NNP
's/POS
non-food/JJ
operations/NNS
./.
``/``
At/IN
this/DT
stage/NN
it/PRP
was/VBD
felt/VBN
I/PRP
was/VBD
perhaps/RB
more/RBR
pertinent/JJ
as/IN
chief/JJ
executive/NN
./.
''/''
Mr./NNP
Nadeau/NNP
also/RB
is/VBZ
chairman/NN
and/CC
chief/JJ
executive/NN
of/IN
Unigesco/NNP
Inc./NNP
,/,
Provigo/NNP
's/POS
controlling/JJ
shareholder/NN
./.
At/IN
a/DT
news/NN
conference/NN
,/,
Mr./NNP
Nadeau/NNP
said/VBD
the/DT
sale/NN
of/IN
the/DT
three/CD
non-food/JJ
businesses/NNS
,/,
which/WDT
account/VBP
for/IN
nearly/RB
half/PDT
the/DT
company/NN
's/POS
C$/$
900/CD
million/CD
in/IN
assets/NNS
,/,
should/MD
be/VB
completed/VBN
in/IN
a/DT
``/``
matter/NN
of/IN
months/NNS
./.
''/''
The/DT
three/CD
units/NNS
are/VBP
a/DT
nationwide/JJ
pharmaceutical/NN
and/CC
health-products/NNS
distributor/NN
,/,
a/DT
small/JJ
sporting-goods/NNS
chain/NN
,/,
and/CC
a/DT
combination/NN
catalog/NN
showroom/NN
and/CC
toy-store/NN
chain/NN
./.
Investors/NNS
and/CC
analysts/NNS
applauded/VBD
the/DT
news/NN
./.
Provigo/NNP
was/VBD
the/DT
most/RBS
active/JJ
industrial/JJ
stock/NN
on/IN
the/DT
Montreal/NNP
Exchange/NNP
,/,
where/WRB
it/PRP
closed/VBD
at/IN
C$/$
9.75/CD
US$/$
8.32/CD
75/CD
Canadian/JJ
cents/NNS
./.
``/``
I/PRP
think/VBP
it/PRP
's/VBZ
a/DT
pretty/RB
positive/JJ
development/NN
,/,
''/''
said/VBD
Ross/NNP
Cowan/NNP
,/,
a/DT
financial/JJ
analyst/NN
with/IN
Levesque/NNP
Beaubien/NNP
Geoffrion/NNP
Inc./NNP
,/,
of/IN
the/DT
decision/NN
to/TO
concentrate/VB
on/IN
groceries/NNS
./.
Mr./NNP
Lortie/NNP
's/POS
departure/NN
,/,
while/IN
sudden/JJ
,/,
was/VBD
seen/VBN
as/IN
inevitable/JJ
in/IN
light/NN
of/IN
the/DT
shift/NN
in/IN
strategy/NN
./.
``/``
The/DT
non-food/JJ
operations/NNS
were/VBD
largely/RB
Mr./NNP
Lortie/NNP
's/POS
creation/NN
his/PRP$
strategy/NN
did/VBD
n't/RB
work/NN
,/,
''/''
said/VBD
Steven/NNP
Holt/NNP
,/,
a/DT
financial/JJ
analyst/NN
with/IN
Midland/NNP
Doherty/NNP
Ltd/NNP
./.
Provigo/NNP
's/POS
profit/NN
record/NN
over/IN
the/DT
past/JJ
two/CD
years/NNS
tarnished/VBD
the/DT
company/NN
's/POS
and/CC
Mr./NNP
Lortie/NNP
's/POS
reputations/NNS
./.
For/IN
the/DT
six/CD
months/NNS
ended/VBN
Aug./NNP
12/CD
,/,
Provigo/NNP
posted/VBD
net/JJ
income/NN
of/IN
C$/$
6.5/CD
million/CD
,/,
or/CC
eight/CD
Canadian/JJ
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
C$/$
18.1/CD
million/CD
,/,
or/CC
21/CD
Canadian/JJ
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
./.
Sales/NNS
were/VBD
C$/$
4.2/CD
billion/CD
compared/VBN
with/IN
C$/$
3.7/CD
billion/CD
./.
Last/JJ
month/NN
,/,
Canadian/JJ
Bond/NNP
Rating/NNP
Service/NNP
downgraded/VBD
Provigo/NNP
's/POS
commercial/JJ
paper/NN
and/CC
debentures/NNS
because/IN
of/IN
its/PRP$
lackluster/JJ
performance/NN
./.
Analysts/NNS
are/VBP
skeptical/JJ
Provigo/NNP
will/MD
be/VB
able/JJ
to/TO
sell/VB
the/DT
non-food/JJ
businesses/NNS
as/IN
a/DT
group/NN
for/IN
at/IN
least/JJS
book/NN
value/NN
,/,
and/CC
are/VBP
expecting/VBG
write-downs/NNS
./.
Mr./NNP
Nadeau/NNP
said/VBD
he/PRP
could/MD
n't/RB
yet/RB
say/VB
if/IN
the/DT
sale/NN
prices/NNS
would/MD
match/VB
book/NN
values/NNS
./.
He/PRP
said/VBD
all/DT
three/CD
non-food/JJ
operations/NNS
are/VBP
profitable/JJ
./.
Mr./NNP
Nadeau/NNP
said/VBD
discussions/NNS
are/VBP
under/IN
way/NN
with/IN
potential/JJ
purchasers/NNS
of/IN
each/DT
of/IN
the/DT
units/NNS
./.
He/PRP
declined/VBD
to/TO
confirm/VB
or/CC
deny/VB
reports/NNS
that/IN
Provigo/NNP
executive/NN
Henri/NNP
Roy/NNP
is/VBZ
trying/VBG
to/TO
put/VB
together/RB
a/DT
management/NN
buy-out/NN
of/IN
the/DT
catalogue/NN
showroom/NN
unit/NN
./.
Mr./NNP
Roy/NNP
could/MD
n't/RB
be/VB
reached/VBN
./.
Yvon/NNP
Bussieres/NNP
was/VBD
named/VBN
senior/JJ
executive/NN
vice/NN
president/NN
and/CC
chief/JJ
operating/VBG
officer/NN
of/IN
Provigo/NNP
,/,
a/DT
new/JJ
position/NN
./.
Mr./NNP
Bussieres/NNP
was/VBD
president/NN
and/CC
chief/JJ
operating/VBG
officer/NN
of/IN
Provigo/NNP
's/POS
Quebec/NNP
retail/NN
and/CC
wholesale/JJ
grocery/NN
unit/NN
./.
Mr./NNP
Nadeau/NNP
said/VBD
he/PRP
intends/VBZ
to/TO
remain/VB
Provigo/NNP
's/POS
chief/JJ
executive/NN
only/RB
until/IN
the/DT
non-food/JJ
businesses/NNS
are/VBP
sold/VBN
,/,
after/IN
a/DT
which/WDT
a/DT
new/JJ
chief/JJ
executive/NN
will/MD
be/VB
named/VBN
./.
Comments/NNS
by/IN
Federal/NNP
Reserve/NNP
Board/NNP
Chairman/NNP
Alan/NNP
Greenspan/NNP
lent/VBD
some/DT
support/NN
to/TO
the/DT
dollar/NN
,/,
but/CC
the/DT
U.S./NNP
unit/NN
ended/VBD
yesterday/NN
lower/RBR
against/IN
most/JJS
major/JJ
currencies/NNS
./.
Foreign-exchange/NN
dealers/NNS
noted/VBD
that/IN
the/DT
impact/NN
of/IN
the/DT
chairman/NN
's/POS
remarks/NNS
was/VBD
slight/JJ
and/CC
warned/VBD
that/IN
the/DT
currency/NN
remains/VBZ
sensitive/JJ
to/TO
developments/NNS
on/IN
Wall/NNP
Street/NNP
./.
Traders/NNS
said/VBD
that/IN
Mr./NNP
Greenspan/NNP
,/,
whose/WP$
statements/NNS
are/VBP
ordinarily/RB
cautious/JJ
,/,
was/VBD
especially/RB
careful/JJ
to/TO
avoid/VB
any/DT
jarring/JJ
proclamations/NNS
,/,
with/IN
fears/NNS
about/IN
equities/NNS
still/RB
unnerving/VBG
financial/JJ
markets/NNS
./.
Testifying/VBG
before/IN
a/DT
panel/NN
of/IN
the/DT
House/NNP
Banking/NNP
Committee/NNP
,/,
Mr./NNP
Greenspan/NNP
said/VBD
the/DT
short-term/JJ
value/NN
of/IN
the/DT
dollar/NN
on/IN
foreign-exchange/NN
markets/NNS
is/VBZ
n't/RB
the/DT
primary/JJ
policy/NN
focus/NN
of/IN
the/DT
central/JJ
bank/NN
./.
``/``
Our/PRP$
essential/JJ
focus/NN
is/VBZ
on/IN
domestic/JJ
policy/NN
,/,
''/''
Mr./NNP
Greenspan/NNP
said/VBD
,/,
referring/VBG
to/TO
the/DT
goals/NNS
of/IN
price/NN
stability/NN
and/CC
a/DT
stable/JJ
economy/NN
./.
In/IN
perhaps/RB
his/PRP$
most/RBS
telling/JJ
remark/NN
,/,
Mr./NNP
Greenspan/NNP
termed/VBD
the/DT
current/JJ
U.S./NNP
inflation/NN
rate/NN
of/IN
around/IN
4.5/CD
%/NN
as/IN
``/``
much/RB
too/RB
high/JJ
to/TO
be/VB
ignored/VBN
./.
''/''
He/PRP
added/VBD
,/,
however/RB
,/,
that/DT
inflation/NN
could/MD
be/VB
brought/VBN
down/RB
``/``
close/RB
to/TO
zero/NN
''/''
without/IN
throwing/VBG
the/DT
economy/NN
into/IN
a/DT
recession/NN
./.
Analysts/NNS
viewed/VBD
the/DT
chairman/NN
's/POS
comments/NNS
as/IN
an/DT
indication/NN
that/IN
the/DT
central/JJ
bank/NN
is/VBZ
disinclined/VBN
to/TO
ease/VB
monetary/JJ
policy/NN
further/RBR
in/IN
the/DT
near/JJ
future/NN
./.
The/DT
dollar/NN
climbed/VBD
immediately/RB
higher/RBR
on/IN
news/NN
of/IN
Mr./NNP
Greenspan/NNP
's/POS
testimony/NN
,/,
settling/VBG
lower/RBR
in/IN
later/JJR
trade/NN
as/IN
dealers/NNS
squared/VBD
positions/NNS
ahead/RB
of/IN
today/NN
's/POS
preliminary/JJ
report/NN
on/IN
third-quarter/JJ
U.S./NNP
gross/JJ
national/JJ
product/NN
./.
In/IN
late/JJ
New/NNP
York/NNP
trading/NN
yesterday/NN
,/,
the/DT
dollar/NN
was/VBD
quoted/VBN
at/IN
1.8353/CD
marks/NNS
,/,
down/RB
from/IN
1.8355/CD
marks/NNS
Tuesday/NNP
,/,
and/CC
at/IN
141.52/CD
yen/NNS
,/,
up/RB
from/IN
141.45/CD
yen/NNS
late/JJ
Tuesday/NNP
./.
Sterling/NN
was/VBD
quoted/VBN
at/IN
$/$
1.6145/CD
,/,
up/RB
from/IN
$/$
1.6055/CD
late/JJ
Tuesday/NNP
./.
In/IN
Tokyo/NNP
Thursday/NNP
,/,
the/DT
U.S./NNP
currency/NN
opened/VBN
for/IN
trading/NN
at/IN
141.60/CD
yen/NNS
,/,
up/RB
from/IN
Wednesday/NNP
's/POS
Tokyo/NNP
close/NN
of/IN
141.55/CD
yen/NNS
./.
Many/JJ
traders/NNS
forecast/VBP
a/DT
continuation/NN
of/IN
the/DT
market/NN
's/POS
recent/JJ
bearish/JJ
trend/NN
and/CC
predict/VBP
the/DT
U.S./NNP
currency/NN
will/MD
remain/VB
stuck/JJ
in/IN
its/PRP$
relatively/RB
narrow/JJ
ranges/NNS
in/IN
the/DT
near/JJ
term/NN
and/CC
then/RB
shift/VB
lower/RBR
./.
But/CC
according/VBG
to/TO
Doug/NNP
Madison/NNP
,/,
a/DT
corporate/JJ
trader/NN
with/IN
Bank/NNP
of/IN
America/NNP
in/IN
Los/NNP
Angeles/NNP
,/,
a/DT
large/JJ
number/NN
of/IN
short/JJ
positions/NNS
must/MD
first/RB
be/VB
corrected/VBN
,/,
spurring/VBG
a/DT
temporary/JJ
upswing/NN
,/,
before/IN
the/DT
unit/NN
can/MD
turn/VB
lower/RBR
./.
He/PRP
predicts/VBZ
a/DT
downward/JJ
move/NN
in/IN
dollar-mark/NN
trade/NN
and/CC
a/DT
less/RBR
dramatic/JJ
slip/NN
in/IN
dollar-yen/JJ
,/,
noting/VBG
that/IN
there/EX
continues/VBZ
to/TO
be/VB
a/DT
large/JJ
pool/NN
of/IN
Japanese/JJ
investor/NN
interest/NN
in/IN
U.S./NNP
securities/NNS
,/,
which/WDT
could/MD
provide/VB
a/DT
solid/JJ
base/NN
for/IN
the/DT
dollar/NN
at/IN
around/IN
140/CD
yen/NNS
./.
Market/NN
participants/NNS
hope/VBP
today/NN
's/POS
GNP/NNP
report/NN
will/MD
offer/VB
more/RBR
substantial/JJ
evidence/NN
on/IN
U.S./NNP
economic/JJ
growth/NN
,/,
although/IN
analysts/NNS
are/VBP
quick/JJ
to/TO
point/VB
out/RB
that/IN
the/DT
figures/NNS
may/MD
overstate/VB
the/DT
economy/NN
's/POS
vigor/NN
./.
``/``
The/DT
`/``
r/NN
'/''
word/NN
is/VBZ
looming/VBG
again/RB
,/,
''/''
says/VBZ
one/CD
dealer/NN
,/,
referring/VBG
to/TO
persistent/JJ
concern/NN
among/IN
some/DT
market/NN
analysts/NNS
that/IN
the/DT
U.S./NNP
economy/NN
is/VBZ
heading/VBG
toward/IN
a/DT
major/JJ
slowdown/NN
if/IN
not/RB
a/DT
recession/NN
./.
Some/DT
dealers/NNS
note/VBP
that/IN
while/IN
the/DT
third-quarter/JJ
figures/NNS
may/MD
appear/VB
relatively/RB
bullish/JJ
--/:
the/DT
market/NN
consensus/NN
calls/VBZ
for/IN
a/DT
2.5/CD
%/NN
annual/JJ
growth/NN
rate/NN
,/,
unchanged/JJ
from/IN
the/DT
second-quarter/JJ
rate/NN
--/:
it/PRP
would/MD
take/VB
a/DT
significantly/RB
stronger/JJR
figure/NN
to/TO
alter/VB
market/NN
perceptions/NNS
that/IN
the/DT
economy/NN
is/VBZ
softening/VBG
./.
Some/DT
analysts/NNS
reckon/VBP
that/IN
the/DT
next/JJ
quarter/NN
's/POS
figures/NNS
will/MD
present/VB
a/DT
more/RBR
accurate/JJ
picture/NN
of/IN
the/DT
U.S./NNP
economy/NN
,/,
showing/VBG
a/DT
marked/JJ
slowdown/NN
in/IN
a/DT
number/NN
of/IN
sectors/NNS
,/,
including/VBG
housing/NN
starts/NNS
and/CC
equities/NNS
./.
On/IN
the/DT
Commodity/NNP
Exchange/NNP
in/IN
New/NNP
York/NNP
,/,
gold/NN
for/IN
current/JJ
delivery/NN
settled/VBD
at/IN
$/$
369.10/CD
an/DT
ounce/NN
,/,
down/RB
$/$
1.10/CD
./.
Estimated/VBN
volume/NN
was/VBD
a/DT
light/JJ
1.7/CD
million/CD
ounces/NNS
./.
In/IN
early/JJ
trading/NN
in/IN
Hong/NNP
Kong/NNP
Thursday/NNP
,/,
gold/NN
was/VBD
quoted/VBN
at/IN
$/$
368.24/CD
an/DT
ounce/NN
./.
Lawrence/NNP
Insurance/NNP
Group/NNP
Inc./NNP
said/VBD
it/PRP
acquired/VBD
United/NNP
Republic/NNP
Reinsurance/NNP
Co./NNP
,/,
a/DT
Houston/NNP
property/NN
and/CC
casualty/NN
reinsurance/NN
company/NN
,/,
from/IN
United/NNP
Savings/NNPS
Association/NNP
of/IN
Texas/NNP
for/IN
$/$
28/CD
million/CD
./.
Lawrence/NNP
Insurance/NNP
also/RB
sold/VBD
3.2/CD
million/CD
of/IN
its/PRP$
shares/NNS
for/IN
$/$
7.125/CD
each/DT
to/TO
its/PRP$
parent/NN
,/,
Lawrence/NNP
Group/NNP
Inc/NNP
./.
Lawrence/NNP
Insurance/NNP
,/,
based/VBN
in/IN
Albany/NNP
,/,
N.Y./NNP
,/,
plans/VBZ
to/TO
use/VB
the/DT
$/$
22.5/CD
million/CD
in/IN
proceeds/NNS
to/TO
help/VB
finance/VB
the/DT
acquisition/NN
of/IN
United/NNP
Republic/NNP
./.
By/IN
acquiring/VBG
the/DT
shares/NNS
,/,
Lawrence/NNP
Group/NNP
increased/VBD
its/PRP$
stake/NN
in/IN
Lawrence/NNP
Insurance/NNP
to/TO
93.2/CD
%/NN
from/IN
91.2/CD
%/NN
./.
Lawrence/NNP
Insurance/NNP
underwrites/VBZ
mostly/RB
primary/JJ
insurance/NN
,/,
a/DT
company/NN
spokesman/NN
said/VBD
./.
A/DT
reinsurance/NN
company/NN
effectively/RB
insures/VBZ
insurance/NN
companies/NNS
that/WDT
wish/VBP
to/TO
spread/VB
the/DT
risk/NN
of/IN
a/DT
particular/JJ
policy/NN
./.
Lawrence/NNP
Group/NNP
also/RB
owns/VBZ
Lawrence/NNP
Agency/NNP
Corp./NNP
,/,
Schenectady/NNP
,/,
N.Y./NNP
,/,
an/DT
insurance/NN
agency/NN
and/CC
brokerage/NN
./.
Levi/NNP
Strauss/NNP
Associates/NNPS
Inc./NNP
,/,
the/DT
closely/RB
held/JJ
owner/NN
of/IN
Levi/NNP
Strauss/NNP
&/CC
Co./NNP
,/,
said/VBD
its/PRP$
fiscal/JJ
third-quarter/JJ
earnings/NNS
jumped/VBD
to/TO
$/$
128.6/CD
million/CD
from/IN
$/$
31.3/CD
million/CD
a/DT
year/NN
earlier/RB
,/,
aided/VBN
by/IN
a/DT
$/$
69.8/CD
million/CD
gain/NN
from/IN
the/DT
sale/NN
of/IN
stock/NN
in/IN
a/DT
Japanese/JJ
subsidiary/NN
./.
The/DT
apparel/NN
holding/VBG
company/NN
had/VBD
sales/NNS
in/IN
the/DT
quarter/NN
ended/VBN
Aug./NNP
27/CD
of/IN
$/$
1/CD
billion/CD
,/,
up/RB
12/CD
%/NN
from/IN
$/$
908.8/CD
million/CD
a/DT
year/NN
ago/RB
./.
The/DT
company/NN
said/VBD
its/PRP$
quarterly/JJ
results/NNS
are/VBP
now/RB
being/VBG
publicly/RB
filed/VBN
as/IN
the/DT
result/NN
of/IN
the/DT
formation/NN
earlier/RBR
this/DT
year/NN
of/IN
employee/NN
stock/NN
investment/NN
plans/NNS
./.
Wall/NNP
Street/NNP
would/MD
like/VB
UAL/NNP
Corp./NNP
's/POS
board/NN
to/TO
change/VB
its/PRP$
mind/NN
about/IN
keeping/VBG
the/DT
company/NN
independent/JJ
./.
But/CC
what/WP
happens/VBZ
next/JJ
in/IN
the/DT
continuing/VBG
takeover/NN
drama/NN
may/MD
depend/VB
more/RBR
on/IN
the/DT
company/NN
's/POS
two/CD
most/RBS
powerful/JJ
and/CC
fractious/JJ
unions/NNS
:/:
the/DT
pilots/NNS
and/CC
machinists/NNS
./.
Some/DT
people/NNS
familiar/JJ
with/IN
the/DT
situation/NN
believe/VBP
that/IN
the/DT
collapse/NN
of/IN
the/DT
previous/JJ
$/$
6.79/CD
billion/CD
buy-out/NN
,/,
if/IN
anything/NN
,/,
may/MD
have/VB
strengthened/VBN
the/DT
hands/NNS
of/IN
these/DT
two/CD
labor/NN
groups/NNS
./.
As/IN
a/DT
result/NN
,/,
both/DT
may/MD
now/RB
have/VBP
virtual/JJ
veto/NN
power/NN
over/IN
any/DT
UAL/NNP
transaction/NN
./.
One/CD
reason/NN
:/:
banks/NNS
--/:
likely/JJ
to/TO
react/VB
to/TO
any/DT
new/JJ
UAL/NNP
deal/NN
with/IN
even/RB
more/JJR
caution/NN
than/IN
the/DT
first/JJ
time/NN
around/RB
--/:
probably/RB
will/MD
insist/VB
on/IN
labor/NN
harmony/NN
before/IN
they/PRP
agree/VBP
to/TO
put/VB
up/RP
cash/NN
for/IN
any/DT
new/JJ
bid/NN
or/CC
even/RB
a/DT
less-ambitious/JJR
recapitalization/NN
plan/NN
./.
``/``
United/NNP
pilots/NNS
have/VBP
shown/VBN
on/IN
a/DT
number/NN
of/IN
occasions/NNS
they/PRP
are/VBP
willing/JJ
and/CC
able/JJ
to/TO
strike/VB
,/,
''/''
said/VBD
an/DT
executive/NN
at/IN
Fuji/NNP
Bank/NNP
,/,
one/CD
of/IN
UAL/NNP
's/POS
large/JJ
lenders/NNS
./.
``/``
If/IN
you/PRP
have/VBP
both/DT
{/(
labor/NN
groups/NNS
on/IN
strike/NN
,/,
you/PRP
've/VBP
got/VBN
no/DT
revenue/NN
and/CC
that/DT
's/VBZ
a/DT
very/RB
scary/JJ
thing/NN
for/IN
a/DT
bank/NN
to/TO
be/VB
looking/VBG
at/IN
./.
''/''
Just/RB
this/DT
past/NN
week/NN
,/,
a/DT
leading/VBG
Japanese/JJ
bank/NN
asked/VBD
for/IN
a/DT
meeting/NN
with/IN
the/DT
machinists/NNS
'/POS
union/NN
leaders/NNS
to/TO
determine/VB
where/WRB
the/DT
union/NN
would/MD
stand/VB
if/IN
another/DT
bid/NN
or/CC
recapitalization/NN
became/VBD
possible/JJ
./.
Another/DT
reason/NN
:/:
Emboldened/VBN
by/IN
their/PRP$
success/NN
in/IN
helping/VBG
to/TO
scuttle/VB
the/DT
previous/JJ
transaction/NN
,/,
the/DT
machinists/NNS
are/VBP
likely/JJ
to/TO
be/VB
more/RBR
aggressive/JJ
if/IN
a/DT
second/JJ
buy-out/NN
attempt/NN
occurs/VBZ
./.
The/DT
two/CD
unions/NNS
already/RB
had/VBD
significant/JJ
leverage/NN
simply/RB
because/IN
their/PRP$
employer/NN
has/VBZ
yet/RB
to/TO
settle/VB
with/IN
either/DT
on/IN
new/JJ
contracts/NNS
./.
That/DT
gives/VBZ
them/PRP
both/DT
the/DT
threat/NN
of/IN
a/DT
strike/NN
and/CC
the/DT
ability/NN
to/TO
resist/VB
any/DT
wage/NN
concessions/NNS
that/WDT
may/MD
be/VB
necessary/JJ
to/TO
make/VB
a/DT
transaction/NN
work/NN
./.
Thus/RB
,/,
even/RB
investors/NNS
who/WP
are/VBP
pushing/VBG
for/IN
the/DT
board/NN
to/TO
do/VB
a/DT
recapitalization/NN
that/WDT
would/MD
pay/VB
shareholders/NNS
a/DT
special/JJ
dividend/NN
and/CC
possibly/RB
grant/VB
employees/NNS
an/DT
ownership/NN
stake/NN
acknowledge/VBP
that/IN
the/DT
unions/NNS
are/VBP
key/JJ
./.
``/``
There/EX
's/VBZ
less/JJR
likelihood/NN
of/IN
creating/VBG
and/CC
completing/VBG
a/DT
transaction/NN
without/IN
the/DT
unions/NNS
'/POS
cooperation/NN
and/CC
wage/NN
concessions/NNS
,/,
''/''
said/VBD
Richard/NNP
Nye/NNP
,/,
of/IN
Baker/NNP
,/,
Nye/NNP
Investments/NNP
,/,
a/DT
New/NNP
York/NNP
takeover/NN
stock-trader/NN
./.
Mr./NNP
Nye/NNP
thinks/VBZ
the/DT
UAL/NNP
board/NN
should/MD
be/VB
ousted/VBN
if/IN
it/PRP
does/VBZ
n't/RB
move/VB
soon/RB
to/TO
increase/VB
shareholder/NN
value/NN
./.
Both/DT
the/DT
pilots/NNS
and/CC
machinists/NNS
have/VBP
made/VBN
it/PRP
clear/JJ
that/IN
they/PRP
intend/VBP
to/TO
block/VB
any/DT
transaction/NN
they/PRP
do/VBP
n't/RB
like/VB
./.
``/``
The/DT
pilots/NNS
will/MD
be/VB
involved/JJ
in/IN
any/DT
transaction/NN
that/WDT
takes/VBZ
place/NN
around/RB
here/RB
,/,
''/''
pilot/NN
union/NN
chairman/NN
Frederick/NNP
C./NNP
Dubinsky/NNP
declared/VBD
yesterday/NN
./.
But/CC
whether/IN
the/DT
pilots/NNS
can/MD
team/VB
up/RB
with/IN
their/PRP$
longtime/JJ
adversaries/NNS
,/,
the/DT
machinists/NNS
,/,
is/VBZ
another/DT
question/NN
./.
The/DT
pilots/NNS
'/POS
Mr./NNP
Dubinsky/NNP
says/VBZ
his/PRP$
union/NN
would/MD
like/VB
majority/NN
ownership/NN
for/IN
employees/NNS
./.
At/IN
the/DT
very/RB
least/JJS
,/,
the/DT
pilots/NNS
want/VBP
some/DT
form/NN
of/IN
control/NN
over/IN
the/DT
airline/NN
,/,
perhaps/RB
through/IN
super-majority/NN
voting/NN
rights/NNS
./.
On/IN
the/DT
other/JJ
hand/NN
,/,
the/DT
machinists/NNS
have/VBP
always/RB
opposed/VBN
majority/NN
ownership/NN
in/IN
principle/NN
,/,
saying/VBG
they/PRP
do/VBP
n't/RB
think/VB
employees/NNS
should/MD
be/VB
owners/NNS
./.
Still/RB
,/,
in/IN
recent/JJ
days/NNS
,/,
machinists/NNS
'/POS
union/NN
leaders/NNS
have/VBP
shown/VBN
some/DT
new/JJ
flexibility/NN
./.
``/``
We/PRP
may/MD
be/VB
able/JJ
to/TO
reach/VB
a/DT
tradeoff/NN
where/WRB
we/PRP
can/MD
accommodate/VB
{/(
the/DT
pilot/NN
union/NN
's/POS
concerns/NNS
and/CC
ours/PRP
,/,
''/''
said/VBD
Brian/NNP
M./NNP
Freeman/NNP
,/,
the/DT
machinists/NNS
'/POS
financial/JJ
adviser/NN
./.
Mr./NNP
Freeman/NNP
said/VBD
machinists/NNS
'/POS
union/NN
advisers/NNS
plan/VBP
to/TO
meet/VB
this/DT
week/NN
to/TO
try/VB
to/TO
draw/VB
up/RP
a/DT
blueprint/NN
for/IN
some/DT
form/NN
of/IN
recapitalization/NN
that/WDT
could/MD
include/VB
a/DT
special/JJ
dividend/NN
for/IN
shareholders/NNS
,/,
an/DT
employee/NN
stake/NN
and/CC
,/,
perhaps/RB
,/,
an/DT
equity/NN
investment/NN
by/IN
a/DT
friendly/JJ
investor/NN
./.
If/IN
a/DT
compromise/NN
ca/MD
n't/RB
be/VB
reached/VBN
,/,
the/DT
pilots/NNS
maintain/VBP
they/PRP
can/MD
do/VB
a/DT
transaction/NN
without/IN
the/DT
support/NN
of/IN
the/DT
machinists/NNS
./.
But/CC
at/IN
this/DT
point/NN
,/,
that/WDT
may/MD
just/RB
be/VB
wishful/JJ
thinking/NN
./.
The/DT
machinists/NNS
lobbied/VBD
heavily/RB
against/IN
the/DT
original/JJ
bid/NN
from/IN
UAL/NNP
pilots/NNS
and/CC
management/NN
for/IN
the/DT
company/NN
./.
Their/PRP$
opposition/NN
helped/VBD
scare/VB
off/RP
some/DT
Japanese/JJ
banks/NNS
./.
The/DT
pilots/NNS
'/POS
insistence/NN
on/IN
majority/NN
ownership/NN
also/RB
may/MD
make/VB
the/DT
idea/NN
of/IN
a/DT
recapitalization/NN
difficult/JJ
to/TO
achieve/VB
./.
``/``
Who/WP
wants/VBZ
to/TO
be/VB
a/DT
public/JJ
shareholder/NN
investing/VBG
in/IN
a/DT
company/NN
controlled/VBN
by/IN
the/DT
pilots/NNS
'/POS
union/NN
?/.
''/''
asks/VBZ
Candace/NNP
Browning/NNP
,/,
an/DT
analyst/NN
at/IN
Wertheim/NNP
Schroeder/NNP
&/CC
Co/NNP
./.
``/``
Who/WP
would/MD
the/DT
board/NN
be/VB
working/VBG
for/IN
--/:
the/DT
public/JJ
shareholders/NNS
or/CC
the/DT
pilots/NNS
?/.
''/''
she/PRP
adds/VBZ
./.
Ms./NNP
Browning/NNP
says/VBZ
she/PRP
believes/VBZ
a/DT
recapitalization/NN
involving/VBG
employee/NN
ownership/NN
would/MD
succeed/VB
only/RB
if/IN
the/DT
pilots/NNS
relent/VBP
on/IN
their/PRP$
demand/NN
for/IN
control/NN
./.
She/PRP
also/RB
notes/VBZ
that/IN
even/RB
if/IN
the/DT
pilots/NNS
accept/VBP
a/DT
minority/NN
stake/NN
now/RB
,/,
they/PRP
still/RB
could/MD
come/VB
back/RB
at/IN
a/DT
later/JJ
time/NN
and/CC
try/VB
to/TO
take/VB
control/NN
./.
Another/DT
possibility/NN
is/VBZ
for/IN
the/DT
pilots/NNS
'/POS
to/TO
team/VB
up/RB
with/IN
an/DT
outside/JJ
investor/NN
who/WP
might/MD
try/VB
to/TO
force/VB
the/DT
ouster/NN
of/IN
the/DT
board/NN
through/IN
the/DT
solicitation/NN
of/IN
consents/NNS
./.
In/IN
that/DT
way/NN
,/,
the/DT
pilots/NNS
may/MD
be/VB
able/JJ
to/TO
force/VB
the/DT
board/NN
to/TO
approve/VB
a/DT
recapitalization/NN
that/WDT
gives/VBZ
employees/NNS
a/DT
majority/NN
stake/NN
,/,
or/CC
to/TO
consider/VB
the/DT
labor-management/NN
group/NN
's/POS
latest/JJS
proposal/NN
./.
The/DT
group/NN
did/VBD
n't/RB
make/VB
a/DT
formal/JJ
offer/NN
,/,
but/CC
instead/RB
told/VBD
UAL/NNP
's/POS
advisers/NNS
before/IN
the/DT
most-recent/JJS
board/NN
meeting/NN
that/IN
it/PRP
was/VBD
working/VBG
on/IN
a/DT
bid/NN
valued/VBN
at/IN
between/IN
$/$
225/CD
and/CC
$/$
240/CD
a/DT
share/NN
./.
But/CC
again/RB
,/,
they/PRP
may/MD
need/VB
the/DT
help/NN
of/IN
the/DT
machinists/NNS
./.
``/``
I/PRP
think/VBP
the/DT
dynamics/NNS
of/IN
this/DT
situation/NN
are/VBP
that/IN
something/NN
's/VBZ
got/VBN
to/TO
happen/VB
,/,
''/''
said/VBD
one/CD
official/NN
familiar/JJ
with/IN
the/DT
situation/NN
./.
The/DT
board/NN
and/CC
UAL/NNP
's/POS
management/NN
,/,
he/PRP
says/VBZ
,/,
``/``
ca/MD
n't/RB
go/VB
back/RB
''/''
to/TO
business/NN
as/RB
usual/JJ
./.
``/``
The/DT
pilots/NNS
wo/MD
n't/RB
let/VB
them/PRP
./.
''/''
Delta/NNP
Air/NNP
Lines/NNPS
earnings/NNS
soared/VBD
33/CD
%/NN
to/TO
a/DT
record/NN
in/IN
the/DT
fiscal/JJ
first/JJ
quarter/NN
,/,
bucking/VBG
the/DT
industry/NN
trend/NN
toward/IN
declining/VBG
profits/NNS
./.
The/DT
Atlanta-based/JJ
airline/NN
,/,
the/DT
third/RB
largest/JJS
in/IN
the/DT
U.S./NNP
,/,
attributed/VBD
the/DT
increase/NN
to/TO
higher/JJR
passenger/NN
traffic/NN
,/,
new/JJ
international/JJ
routes/NNS
and/CC
reduced/JJ
service/NN
by/IN
rival/JJ
Eastern/NNP
Airlines/NNPS
,/,
which/WDT
is/VBZ
in/IN
bankruptcy/NN
proceedings/NNS
in/IN
the/DT
wake/NN
of/IN
a/DT
strike/NN
that/WDT
began/VBD
last/JJ
spring/NN
./.
For/IN
the/DT
quarter/NN
ended/VBN
Sept./NNP
30/CD
,/,
Delta/NNP
posted/VBD
net/JJ
income/NN
of/IN
$/$
133.1/CD
million/CD
,/,
or/CC
$/$
2.53/CD
a/DT
share/NN
,/,
up/RB
from/IN
$/$
100/CD
million/CD
,/,
or/CC
$/$
2.03/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
./.
Revenue/NN
rose/VBD
15/CD
%/NN
to/TO
$/$
2.17/CD
billion/CD
from/IN
$/$
1.89/CD
billion/CD
./.
During/IN
the/DT
quarter/NN
,/,
Delta/NNP
issued/VBD
2.5/CD
million/CD
shares/NNS
of/IN
common/JJ
stock/NN
to/TO
Swissair/NNP
,/,
and/CC
repurchased/VBD
1.1/CD
million/CD
shares/NNS
for/IN
use/NN
in/IN
a/DT
company/NN
employee/NN
stock/NN
ownership/NN
plan/NN
./.
``/``
The/DT
key/NN
to/TO
Delta/NNP
's/POS
record/NN
earnings/NNS
continued/VBD
to/TO
be/VB
excellent/JJ
passenger/NN
revenue/NN
growth/NN
,/,
''/''
said/VBD
Thomas/NNP
Roeck/NNP
,/,
chief/JJ
financial/JJ
officer/NN
./.
Passenger/NN
traffic/NN
jumped/VBD
14/CD
%/NN
in/IN
the/DT
quarter/NN
,/,
while/IN
profit/NN
per/IN
passenger/NN
grew/VBD
2/CD
%/NN
./.
Delta/NNP
has/VBZ
benefited/VBN
more/RBR
than/IN
other/JJ
carriers/NNS
from/IN
the/DT
weakness/NN
of/IN
Eastern/NNP
Airlines/NNPS
,/,
which/WDT
shares/VBZ
the/DT
Atlanta/NNP
hub/NN
./.
Although/IN
Eastern/NNP
is/VBZ
back/RB
to/TO
about/IN
80/CD
%/NN
of/IN
its/PRP$
pre-strike/JJ
schedule/NN
now/RB
,/,
the/DT
Texas/NNP
Air/NNP
Corp./NNP
subsidiary/NN
was/VBD
only/RB
beginning/VBG
to/TO
get/VB
back/RB
on/IN
its/PRP$
feet/NNS
during/IN
the/DT
quarter/NN
./.
Separately/RB
,/,
America/NNP
West/NNP
Airlines/NNPS
,/,
Phoenix/NNP
,/,
Ariz./NNP
,/,
reported/VBD
third-quarter/JJ
profit/NN
jumped/VBD
45/CD
%/NN
to/TO
$/$
5.8/CD
million/CD
,/,
or/CC
28/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
4/CD
million/CD
,/,
or/CC
24/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
./.
The/DT
latest/JJS
results/NNS
include/VBP
a/DT
$/$
2.6/CD
million/CD
one-time/JJ
payment/NN
from/IN
a/DT
``/``
foreign/JJ
entity/NN
./.
''/''
America/NNP
West/NNP
would/MD
n't/RB
identify/VB
the/DT
entity/NN
,/,
but/CC
said/VBD
the/DT
payment/NN
was/VBD
for/IN
the/DT
foreign/JJ
company/NN
's/POS
use/NN
of/IN
certain/JJ
tax/NN
benefits/NNS
in/IN
connection/NN
with/IN
America/NNP
West/NNP
plane/NN
purchases/NNS
./.
Year-earlier/JJ
results/NNS
included/VBD
an/DT
extraordinary/JJ
gain/NN
of/IN
$/$
1.6/CD
million/CD
from/IN
a/DT
buy-back/NN
of/IN
convertible/JJ
subordinated/JJ
debentures/NNS
./.
Revenue/NN
rose/VBD
21/CD
%/NN
to/TO
$/$
243.4/CD
million/CD
from/IN
$/$
201.2/CD
million/CD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
America/NNP
West/NNP
posted/VBD
earnings/NNS
of/IN
$/$
18.9/CD
million/CD
,/,
or/CC
97/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
a/DT
loss/NN
of/IN
$/$
9.7/CD
million/CD
,/,
or/CC
74/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
./.
Revenue/NNP
rose/VBD
27/CD
%/NN
to/TO
$/$
715.1/CD
million/CD
from/IN
$/$
563.8/CD
million/CD
./.
PAPERS/NNS
:/:
Thomson/NNP
Corp./NNP
's/POS
Globe/NNP
&/CC
Mail/NNP
newspaper/NN
in/IN
November/NNP
will/MD
begin/VB
transmitting/VBG
an/DT
experimental/JJ
edition/NN
to/TO
selected/VBN
subscribers/NNS
'/POS
facsimile/JJ
machines/NNS
./.
The/DT
four-page/JJ
news/NN
summary/NN
will/MD
be/VB
aimed/VBN
at/IN
readers/NNS
outside/IN
Canada/NNP
or/CC
in/IN
Canadian/JJ
locations/NNS
where/WRB
the/DT
national/JJ
daily/NN
is/VBZ
n't/RB
available/JJ
on/IN
the/DT
day/NN
of/IN
publication/NN
./.
In/IN
the/DT
U.S./NNP
,/,
the/DT
Hartford/NNP
Courant/NNP
has/VBZ
a/DT
facsimile/JJ
edition/NN
and/CC
some/DT
other/JJ
newspapers/NNS
are/VBP
considering/VBG
the/DT
idea/NN
./.
WHO/WP
'S/VBZ

NEWS/NNP
:/:
Michael/NNP
T./NNP
Carr/NNP
,/,
advertising/VBG
director/NN
of/IN
Playboy/NNP
magazine/NN
,/,
was/VBD
named/VBN
publisher/NN
of/IN
National/NNP
Lampoon/NNP
and/CC
Heavy/NNP
Metal/NNP
magazines/NNS
,/,
succeeding/VBG
George/NNP
Agoglia/NNP
./.
It/PRP
was/VBD
the/DT
first/JJ
management/NN
change/NN
since/IN
film-makers/NNS
Daniel/NNP
Grodnik/NNP
and/CC
Tim/NNP
Matheson/NNP
took/VBD
control/NN
of/IN
National/NNP
Lampoon/NNP
Inc./NNP
in/IN
March/NNP
./.
They/PRP
are/VBP
looking/VBG
for/IN
a/DT
new/JJ
editor/NN
for/IN
National/NNP
Lampoon/NNP
and/CC
are/VBP
trying/VBG
to/TO
sell/VB
Heavy/NNP
Metal/NNP
./.
Columbia/NNP
Savings/NNPS
&/CC
Loan/NNP
Association/NNP
,/,
reeling/VBG
from/IN
thrift-accounting/NN
changes/NNS
mandated/VBN
by/IN
Congress/NNP
and/CC
the/DT
recent/JJ
collapse/NN
of/IN
the/DT
junk-bond/NN
market/NN
,/,
announced/VBD
a/DT
loss/NN
for/IN
the/DT
third/JJ
quarter/NN
of/IN
$/$
226.3/CD
million/CD
,/,
or/CC
$/$
11.57/CD
a/DT
share/NN
./.
For/IN
the/DT
quarter/NN
a/DT
year/NN
ago/RB
,/,
Columbia/NNP
reported/VBD
earnings/NNS
of/IN
$/$
16.3/CD
million/CD
,/,
or/CC
37/CD
cents/NNS
a/DT
share/NN
./.
Total/JJ
assets/NNS
increased/VBD
to/TO
$/$
12.7/CD
billion/CD
in/IN
the/DT
latest/JJS
quarter/NN
from/IN
$/$
12.4/CD
billion/CD
a/DT
year/NN
earlier/RB
./.
The/DT
loss/NN
stems/VBZ
from/IN
$/$
357.5/CD
million/CD
of/IN
write-downs/NNS
on/IN
Columbia/NNP
's/POS
$/$
4.4/CD
billion/CD
high-yield/JJ
investment/NN
securities/NNS
portfolio/NN
,/,
which/WDT
includes/VBZ
about/IN
$/$
3.7/CD
billion/CD
of/IN
junk/NN
bonds/NNS
,/,
$/$
400/CD
million/CD
of/IN
preferred/JJ
stock/NN
,/,
and/CC
Treasury/NNP
securities/NNS
./.
Columbia/NNP
owes/VBZ
its/PRP$
spectacular/JJ
growth/NN
in/IN
recent/JJ
years/NNS
to/TO
its/PRP$
junk-bond/NN
portfolio/NN
,/,
the/DT
largest/JJS
of/IN
any/DT
U.S./NNP
thrift/NN
./.
Much/JJ
of/IN
Columbia/NNP
's/POS
junk-bond/NN
trading/NN
has/VBZ
been/VBN
done/VBN
through/IN
the/DT
high-yield/JJ
department/NN
of/IN
its/PRP$
Beverly/NNP
Hills/NNPS
neighbor/NN
,/,
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc/NNP
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
losses/NNS
totaled/VBD
$/$
212/CD
million/CD
,/,
or/CC
$/$
10.83/CD
a/DT
share/NN
,/,
compared/VBN
with/IN
net/JJ
income/NN
of/IN
$/$
48.7/CD
million/CD
,/,
or/CC
$/$
1.11/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
./.
The/DT
results/NNS
include/VBP
a/DT
$/$
130.2/CD
million/CD
write-down/NN
of/IN
the/DT
securities/NNS
in/IN
the/DT
high-yield/JJ
portfolio/NN
to/TO
the/DT
lower/JJR
of/IN
their/PRP$
cost/NN
or/CC
market/NN
value/NN
./.
Columbia/NNP
also/RB
added/VBD
$/$
227.3/CD
million/CD
to/TO
reserves/NNS
for/IN
losses/NNS
on/IN
the/DT
portfolio/NN
,/,
increasing/VBG
general/JJ
reserves/NNS
to/TO
$/$
300/CD
million/CD
,/,
or/CC
about/IN
6.7/CD
%/NN
of/IN
the/DT
total/NN
portfolio/NN
,/,
as/IN
of/IN
Sept./NNP
30/CD
./.
On/IN
June/NNP
30/CD
,/,
loss/NN
reserves/NNS
stood/VBD
at/IN
$/$
108.3/CD
million/CD
./.
Thrift/NN
officials/NNS
said/VBD
the/DT
$/$
300/CD
million/CD
reserve/NN
will/MD
be/VB
adjusted/VBN
quarterly/RB
and/CC
will/MD
reflect/VB
the/DT
rate/NN
of/IN
dispositions/NNS
and/CC
market/NN
conditions/NNS
./.
The/DT
adjustments/NNS
result/VBP
from/IN
the/DT
recently/RB
passed/VBN
thrift-industry/NN
bailout/NN
legislation/NN
,/,
which/WDT
requires/VBZ
thrifts/NNS
to/TO
divest/VB
all/DT
high-yield/JJ
bond/NN
investments/NNS
by/IN
1994/CD
./.
Previously/RB
,/,
Columbia/NNP
did/VBD
n't/RB
have/VB
to/TO
adjust/VB
the/DT
book/NN
value/NN
of/IN
its/PRP$
junk-bond/NN
holdings/NNS
to/TO
reflect/VB
declines/NNS
in/IN
market/NN
prices/NNS
,/,
because/IN
it/PRP
held/VBD
the/DT
bonds/NNS
as/IN
long-term/JJ
investments/NNS
./.
Because/IN
Columbia/NNP
now/RB
must/MD
sell/VB
the/DT
bonds/NNS
within/IN
five/CD
years/NNS
,/,
accounting/NN
rules/NNS
require/VBP
the/DT
thrift/NN
to/TO
value/VB
the/DT
bonds/NNS
at/IN
the/DT
lower/JJR
of/IN
cost/NN
or/CC
market/NN
prices/NNS
./.
For/IN
its/PRP$
future/NN
strategy/NN
,/,
Columbia/NNP
officials/NNS
said/VBD
the/DT
thrift/NN
may/MD
branch/VB
out/RB
into/IN
commercial/JJ
lending/NN
or/CC
managing/NN
outside/JJ
investments/NNS
,/,
as/RB
well/RB
as/IN
beefing/VBG
up/RP
more/RBR
traditional/JJ
thrift/NN
activities/NNS
./.
The/DT
quarterly/JJ
results/NNS
also/RB
reflected/VBD
$/$
21.4/CD
million/CD
in/IN
non-recurring/JJ
losses/NNS
from/IN
commercial/JJ
real-estate/NN
activities/NNS
in/IN
California/NNP
./.
Thomas/NNP
Spiegel/NNP
,/,
Columbia/NNP
's/POS
chairman/NN
,/,
said/VBD
in/IN
a/DT
statement/NN
that/IN
the/DT
thrift/NN
was/VBD
``/``
disappointed/JJ
''/''
by/IN
the/DT
effects/NNS
of/IN
the/DT
accounting/NN
changes/NNS
./.
But/CC
he/PRP
said/VBD
Columbia/NNP
remains/VBZ
``/``
one/CD
of/IN
the/DT
most/RBS
strongly/RB
capitalized/JJ
thrifts/NNS
in/IN
the/DT
industry/NN
,/,
''/''
based/VBN
on/IN
the/DT
economic/JJ
value/NN
of/IN
its/PRP$
assets/NNS
and/CC
tangible/JJ
capital/NN
./.
Columbia/NNP
announced/VBD
the/DT
results/NNS
after/IN
the/DT
close/NN
of/IN
the/DT
stock/NN
market/NN
./.
Its/PRP$
shares/NNS
closed/VBD
at/IN
$/$
5.125/CD
each/DT
in/IN
composite/JJ
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
trading/NN
,/,
down/RB
37.5/CD
cents/NNS
./.
The/DT
price/NN
of/IN
Columbia/NNP
shares/NNS
has/VBZ
been/VBN
cut/VBN
nearly/RB
in/IN
half/NN
since/IN
August/NNP
,/,
when/WRB
they/PRP
traded/VBD
at/IN
about/IN
$/$
10/CD
,/,
as/IN
investors/NNS
apparently/RB
realized/VBD
that/IN
the/DT
thrift/NN
would/MD
be/VB
forced/VBN
to/TO
take/VB
a/DT
big/JJ
write-down/NN
./.
The/DT
stock/NN
's/POS
decline/NN
accelerated/VBN
in/IN
the/DT
past/JJ
two/CD
weeks/NNS
,/,
from/IN
a/DT
price/NN
of/IN
$/$
8/CD
a/DT
share/NN
on/IN
Oct./NNP
9/CD
./.
Columbia/NNP
officials/NNS
said/VBD
they/PRP
do/VBP
n't/RB
know/VB
how/WRB
quickly/RB
they/PRP
will/MD
dispose/VB
of/IN
the/DT
thrift/NN
's/POS
junk/NN
bonds/NNS
,/,
because/IN
federal/JJ
regulations/NNS
,/,
such/JJ
as/IN
those/DT
that/WDT
would/MD
allow/VB
thrifts/NNS
to/TO
continue/VB
holding/VBG
the/DT
bonds/NNS
in/IN
separately/RB
capitalized/JJ
subsidiaries/NNS
,/,
have/VBP
n't/RB
yet/RB
been/VBN
completed/VBN
./.
Columbia/NNP
officials/NNS
also/RB
said/VBD
the/DT
thrift/NN
should/MD
n't/RB
face/VB
problems/NNS
meeting/VBG
regulatory/JJ
capital/NN
requirements/NNS
,/,
despite/IN
the/DT
large/JJ
reserves/NNS
and/CC
write-downs/NNS
and/CC
stiffer/JJR
regulatory/JJ
requirements/NNS
that/WDT
should/MD
be/VB
in/IN
place/NN
by/IN
year/NN
's/POS
end/NN
./.
Its/PRP$
ratio/NN
of/IN
tangible/JJ
equity/NN
to/TO
total/JJ
assets/NNS
as/IN
of/IN
Sept./NNP
30/CD
was/VBD
3.6/CD
%/NN
,/,
and/CC
total/JJ
equity/NN
was/VBD
$/$
457.9/CD
million/CD
./.
The/DT
thrift/NN
emphasized/VBD
that/IN
it/PRP
has/VBZ
a/DT
large/JJ
portfolio/NN
of/IN
equity/NN
securities/NNS
issued/VBN
in/IN
connection/NN
with/IN
corporate/JJ
restructurings/NNS
and/CC
leveraged/JJ
buy-outs/NNS
,/,
which/WDT
has/VBZ
a/DT
book/NN
value/NN
of/IN
$/$
90/CD
million/CD
./.
Although/IN
many/JJ
of/IN
the/DT
transactions/NNS
related/JJ
to/TO
those/DT
securities/NNS
have/VBP
n't/RB
been/VBN
completed/VBN
,/,
Columbia/NNP
said/VBD
the/DT
ultimate/JJ
gain/NN
on/IN
the/DT
sale/NN
of/IN
those/DT
assets/NNS
will/MD
range/VB
from/IN
$/$
200/CD
million/CD
to/TO
$/$
300/CD
million/CD
./.
Columbia/NNP
also/RB
has/VBZ
unrealized/JJ
gains/NNS
in/IN
its/PRP$
public/JJ
equity/NN
securities/NNS
portfolio/NN
of/IN
more/JJR
than/IN
$/$
70/CD
million/CD
./.
David/NNP
B./NNP
Hilder/NNP
in/IN
New/NNP
York/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Anheuser-Busch/NNP
Cos./NNP
said/VBD
it/PRP
plans/VBZ
to/TO
aggressively/RB
discount/VB
its/PRP$
major/JJ
beer/NN
brands/NNS
,/,
setting/VBG
the/DT
stage/NN
for/IN
a/DT
potentially/RB
bruising/JJ
price/NN
war/NN
as/IN
the/DT
maturing/VBG
industry/NN
's/POS
growth/NN
continues/VBZ
to/TO
slow/VB
./.
Anheuser/NNP
,/,
the/DT
world/NN
's/POS
largest/JJS
brewer/NN
and/CC
U.S./NNP
market/NN
leader/NN
,/,
has/VBZ
historically/RB
been/VBN
reluctant/JJ
to/TO
engage/VB
in/IN
price-cutting/NN
as/IN
a/DT
means/NN
of/IN
boosting/VBG
sales/NNS
volume/NN
./.
With/IN
the/DT
passing/NN
of/IN
the/DT
heady/JJ
days/NNS
of/IN
swelling/VBG
industry/NN
sales/NNS
,/,
however/RB
,/,
the/DT
once-sporadic/JJ
and/CC
brief/JJ
forays/NNS
into/IN
discounting/NN
are/VBP
becoming/VBG
standard/JJ
competitive/JJ
weapons/NNS
in/IN
the/DT
beer/NN
industry/NN
./.
Over/IN
the/DT
summer/NN
,/,
Anheuser/NNP
competitors/NNS
offered/VBD
more/JJR
and/CC
deeper/JJR
discounts/NNS
than/IN
industry/NN
observers/NNS
have/VBP
seen/VBN
for/IN
a/DT
long/JJ
time/NN
./.
Some/DT
experts/NNS
now/RB
predict/VBP
Anheuser/NNP
's/POS
entry/NN
into/IN
the/DT
fray/NN
means/VBZ
near-term/JJ
earnings/NNS
trouble/NN
for/IN
all/PDT
the/DT
industry/NN
players/NNS
./.
The/DT
St./NNP
Louis/NNP
company/NN
said/VBD
major/JJ
rivals/NNS
,/,
Philip/NNP
Morris/NNP
Co./NNP
's/POS
Miller/NNP
Brewing/NNP
unit/NN
and/CC
Adolph/NNP
Coors/NNP
Co./NNP
``/``
have/VBP
been/VBN
following/VBG
a/DT
policy/NN
of/IN
continuous/JJ
and/CC
deep/JJ
discounting/NN
for/IN
at/IN
least/JJS
the/DT
past/JJ
18/CD
months/NNS
''/''
on/IN
their/PRP$
premium/JJ
brands/NNS
,/,
pricing/VBG
their/PRP$
product/NN
as/RB
much/JJ
as/IN
25/CD
cents/NNS
a/DT
12-pack/NN
below/IN
Anheuser/NNP
's/POS
Budweiser/NNP
label/NN
in/IN
many/JJ
markets/NNS
./.
Anheuser/NNP
said/VBD
it/PRP
's/VBZ
discounting/NN
policy/NN
basically/RB
would/MD
involve/VB
matching/VBG
such/JJ
moves/NNS
by/IN
rivals/NNS
on/IN
a/DT
market-by-market/JJ
basis/NN
./.
Anheuser-Busch/NNP
announced/VBD
its/PRP$
plan/NN
at/IN
the/DT
same/JJ
time/NN
it/PRP
reported/VBD
third-quarter/JJ
net/JJ
income/NN
rose/VBD
a/DT
lower-than-anticipated/JJ
5.2/CD
%/NN
to/TO
$/$
238.3/CD
million/CD
,/,
or/CC
83/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
226.5/CD
million/CD
,/,
or/CC
78/CD
cents/NNS
./.
Third-period/JJ
sales/NNS
were/VBD
$/$
2.49/CD
billion/CD
,/,
up/RB
from/IN
last/JJ
year/NN
's/POS
$/$
2.34/CD
billion/CD
./.
Anheuser/NNP
said/VBD
its/PRP$
new/JJ
strategy/NN
--/:
started/VBN
in/IN
some/DT
markets/NNS
last/JJ
month/NN
and/CC
expected/VBN
to/TO
be/VB
applied/VBN
soon/RB
in/IN
selected/VBN
markets/NNS
nationwide/JJ
--/:
will/MD
mean/VB
lower-than-anticipated/JJ
earnings/NNS
for/IN
the/DT
last/JJ
half/NN
of/IN
1989/CD
and/CC
for/IN
1990/CD
./.
The/DT
projection/NN
sent/VBN
Anheuser/NNP
shares/NNS
plunging/VBG
$/$
4.375/CD
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
./.
The/DT
stock/NN
closed/VBN
at/IN
$/$
38.50/CD
on/IN
heavy/JJ
volume/NN
of/IN
about/IN
3.5/CD
million/CD
shares/NNS
./.
Shares/NNS
of/IN
Coors/NNP
,/,
the/DT
company/NN
's/POS
sole/NN
publicly/RB
traded/JJ
major/JJ
competitor/NN
,/,
fell/VBD
$/$
1.50/CD
apiece/JJ
to/TO
$/$
19.125/CD
in/IN
national/JJ
over-the-counter/JJ
trading/NN
,/,
apparently/RB
on/IN
investor/NN
concerns/NNS
over/IN
potential/JJ
fallout/NN
from/IN
the/DT
coming/VBG
pricing/NN
struggle/NN
./.
Anheuser/NNP
noted/VBD
that/IN
``/``
beer/NN
industry/NN
sales/NNS
volume/NN
is/VBZ
1989/CD
is/VBZ
following/VBG
the/DT
trend/NN
that/WDT
has/VBZ
characterized/VBN
the/DT
last/JJ
half/NN
of/IN
the/DT
'80s/NNS
,/,
with/IN
sales/NNS
volume/NN
being/VBG
essentially/RB
flat/JJ
''/''
while/IN
consolidation/NN
creates/VBZ
fewer/JJR
,/,
bigger/JJR
players/NNS
./.
``/``
We/PRP
can/MD
not/RB
permit/VB
a/DT
further/JJR
slowing/NN
in/IN
our/PRP$
volume/NN
trend/NN
,/,
''/''
Anheuser/NNP
said/VBD
,/,
adding/VBG
it/PRP
will/MD
take/VB
``/``
appropriate/JJ
competitive/JJ
pricing/NN
actions/NNS
to/TO
support/VB
our/PRP$
long-term/JJ
market/NN
share/NN
growth/NN
strategy/NN
''/''
for/IN
the/DT
premium/JJ
brands/NNS
./.
Anheuser/NNP
said/VBD
it/PRP
continues/VBZ
to/TO
hold/VB
to/TO
its/PRP$
earlier-announced/JJ
goal/NN
of/IN
a/DT
50/CD
%/NN
U.S./NNP
market/NN
share/NN
by/IN
the/DT
mid-1990s/NNS
./.
Beneath/IN
the/DT
tepid/JJ
news-release/NN
jargon/NN
lies/VBZ
a/DT
powerful/JJ
threat/NN
from/IN
the/DT
brewing/VBG
giant/NN
,/,
which/WDT
last/JJ
year/NN
accounted/VBD
for/IN
about/IN
41/CD
%/NN
of/IN
all/DT
U.S./NNP
beer/NN
sales/NNS
and/CC
is/VBZ
expected/VBN
to/TO
see/VB
that/DT
grow/VB
to/TO
42.5/CD
%/NN
in/IN
the/DT
current/JJ
year/NN
./.
``/``
Anheuser/NNP
is/VBZ
the/DT
biggest/JJS
guy/NN
in/IN
the/DT
bar/NN
,/,
and/CC
he/PRP
just/RB
decided/VBD
to/TO
join/VB
in/IN
the/DT
barroom/NN
brawl/NN
,/,
''/''
said/VBD
Joseph/NNP
J./NNP
Doyle/NNP
,/,
an/DT
analyst/NN
with/IN
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
&/CC
Co/NNP
./.
``/``
It/PRP
's/VBZ
going/VBG
to/TO
get/VB
bloody/JJ
./.
''/''
Jerry/NNP
Steinman/NNP
,/,
publisher/NN
of/IN
Beer/NNP
Marketers/NNPS
Insights/NNPS
,/,
a/DT
trade/NN
newsletter/NN
,/,
said/VBD
Anheuser/NNP
's/POS
announcement/NN
means/VBZ
``/``
everybody/NN
else/JJ
in/IN
the/DT
industry/NN
is/VBZ
going/VBG
to/TO
have/VB
a/DT
difficult/JJ
time/NN
reaching/VBG
their/PRP$
profit/NN
objectives/NNS
./.
''/''
Prudential-Bache/NNP
Securities/NNPS
Inc./NNP
analyst/NN
George/NNP
E./NNP
Thompson/NNP
downplayed/VBD
the/DT
importance/NN
of/IN
the/DT
announcement/NN
,/,
and/CC
called/VBD
any/DT
comparison/NN
between/IN
the/DT
coming/VBG
beer-industry/NN
tiff/NN
and/CC
the/DT
seemingly/RB
unending/JJ
``/``
cola/NN
wars/NNS
,/,
''/''
unwarranted/JJ
./.
Mr./NNP
Thompson/NNP
calls/VBZ
discounting/NN
``/``
a/DT
loser/NN
's/POS
game/NN
for/IN
anyone/NN
without/IN
a/DT
dominant/JJ
market/NN
share/NN
,/,
''/''
and/CC
projected/VBD
that/DT
Anheuser/NNP
's/POS
statement/NN
of/IN
intent/NN
could/MD
simply/RB
be/VB
a/DT
means/NN
of/IN
warning/VBG
competitors/NNS
to/TO
ease/VB
up/RB
on/IN
price-cutting/NN
or/CC
face/VB
a/DT
costly/JJ
and/CC
fruitless/JJ
battle/NN
./.
Mr./NNP
Thompson/NNP
noted/VBD
that/IN
the/DT
disappointing/JJ
earnings/NNS
,/,
which/WDT
fell/VBD
five/CD
cents/NNS
a/DT
share/NN
short/JJ
of/IN
his/PRP$
own/JJ
projections/NNS
,/,
contributed/VBD
to/TO
the/DT
sell-off/NN
by/IN
an/DT
edgy/JJ
and/CC
currently/RB
unforgiving/JJ
investing/VBG
public/NN
./.
But/CC
Smith/NNP
Barney/NNP
's/POS
Mr./NNP
Doyle/NNP
,/,
who/WP
yesterday/NN
trimmed/VBD
his/PRP$
1990/CD
Anheuser/NNP
earnings/NNS
projection/NN
to/TO
$/$
2.95/CD
a/DT
share/NN
from/IN
$/$
3.10/CD
,/,
called/VBD
the/DT
market/NN
's/POS
reaction/NN
``/``
justified/JJ
./.
''/''
While/IN
the/DT
third-quarter/JJ
earnings/NNS
were/VBD
a/DT
``/``
moderate/JJ
disappointment/NN
,/,
''/''
he/PRP
said/VBD
,/,
``/``
the/DT
real/JJ
bad/JJ
news/NN
is/VBZ
the/DT
intensity/NN
of/IN
price/NN
competition/NN
''/''
in/IN
the/DT
premium-beer/NN
sector/NN
./.
According/VBG
to/TO
Mr./NNP
Steinman/NNP
,/,
the/DT
newsletter/NN
publisher/NN
,/,
Anheuser/NNP
's/POS
market/NN
share/NN
is/VBZ
nearly/RB
twice/JJ
that/IN
of/IN
its/PRP$
nearest/JJS
competitor/NN
,/,
Miller/NNP
Brewing/NNP
,/,
which/WDT
had/VBD
a/DT
21.2/CD
%/NN
stake/NN
last/JJ
year/NN
./.
It/PRP
's/VBZ
followed/VBN
by/IN
Stroh/NNP
Brewery/NNP
Co./NNP
,/,
which/WDT
has/VBZ
agreed/VBN
to/TO
sell/VB
its/PRP$
assets/NNS
to/TO
Coors/NNP
./.
Both/DT
Coors/NNP
and/CC
Stroh/NNP
have/VBP
recently/RB
been/VBN
ceding/VBG
market/NN
share/NN
to/TO
Miller/NNP
and/CC
Anheuser/NNP
./.
Tokyo/NNP
stocks/NNS
closed/VBD
easier/RBR
for/IN
the/DT
second/JJ
consecutive/JJ
day/NN
,/,
finishing/VBG
at/IN
the/DT
intraday/NN
low/JJ
on/IN
index-linked/JJ
investment/NN
trust/NN
fund/NN
selling/NN
toward/IN
the/DT
end/NN
of/IN
the/DT
afternoon/NN
session/NN
./.
Stocks/NNS
rose/VBD
in/IN
London/NNP
,/,
but/CC
fell/VBD
again/RB
in/IN
Frankfurt/NNP
./.
Tokyo/NNP
's/POS
Nikkei/NNP
index/NN
fell/VBD
84.15/CD
points/NNS
to/TO
35442.40/CD
./.
Trading/NN
was/VBD
active/JJ
./.
Volume/NN
on/IN
the/DT
first/JJ
section/NN
was/VBD
estimated/VBN
at/IN
1/CD
billion/CD
shares/NNS
,/,
up/RB
from/IN
914/CD
million/CD
Tuesday/NNP
./.
The/DT
Tokyo/NNP
stock/NN
price/NN
index/NN
of/IN
first/JJ
section/NN
issues/NNS
was/VBD
down/RB
8.65/CD
at/IN
In/IN
early/JJ
trading/NN
in/IN
Tokyo/NNP
Thursday/NNP
,/,
the/DT
Nikkei/NNP
index/NN
rose/VBD
145.45/CD
points/NNS
to/TO
35587.85/CD
./.
On/IN
Wednesday/NNP
,/,
the/DT
market/NN
opened/VBD
bullishly/RB
with/IN
high/JJ
turnover/NN
,/,
ignoring/VBG
the/DT
volatility/NN
in/IN
New/NNP
York/NNP
stocks/NNS
./.
But/CC
losers/NNS
were/VBD
spread/VBN
in/IN
a/DT
broad/JJ
range/NN
by/IN
the/DT
end/NN
of/IN
the/DT
session/NN
./.
A/DT
trader/NN
said/VBD
that/IN
the/DT
more/JJR
an/DT
issue/NN
gained/VBD
recently/RB
,/,
the/DT
sharper/JJR
the/DT
loss/NN
sustained/VBN
Wednesday/NNP
./.
A/DT
trader/NN
at/IN
Yamaichi/NNP
Securities/NNPS
said/VBD
the/DT
market/NN
's/POS
mood/NN
was/VBD
undercut/VBN
by/IN
the/DT
continuing/VBG
fall/NN
of/IN
Nippon/NNP
Telegraph/NNP
&/CC
Telephone/NNP
shares/NNS
,/,
which/WDT
declined/VBD
to/TO
their/PRP$
lowest/JJS
level/NN
since/IN
the/DT
begining/NN
of/IN
this/DT
year/NN
./.
NTT/NNP
lost/VBD
30,000/CD
yen/NNS
to/TO
1,380,000/CD
yen/NNS
$/$
9,756/CD
Some/DT
traders/NNS
noted/VBD
individual/JJ
investors/NNS
dumped/VBD
NTT/NNP
shares/NNS
amid/IN
growing/VBG
expectation/NN
for/IN
a/DT
division/NN
of/IN
the/DT
company/NN
as/IN
suggested/VBN
by/IN
a/DT
recent/JJ
government-sponsored/JJ
panel/NN
./.
Dealers/NNS
said/VBD
they/PRP
also/RB
took/VBD
profits/NNS
to/TO
reduce/VB
holdings/NNS
in/IN
their/PRP$
own/JJ
account/NN
at/IN
the/DT
end/NN
of/IN
the/DT
October/NNP
transaction/NN
period/NN
./.
Among/IN
pharmaceutical/JJ
shares/NNS
,/,
Chugai/NNP
lost/VBD
60/CD
yen/NNS
to/TO
2,290/CD
yen/NNS
$/$
16.20/CD
Mochida/NNP
fell/VBD
150/CD
to/TO
4,290/CD
./.
Other/JJ
losing/VBG
issues/NNS
included/VBD
Showa/NNP
Shell/NNP
,/,
which/WDT
fell/VBD
40/CD
to/TO
1,520/CD
./.
Toyota/NNP
Motor/NNP
fell/VBD
40/CD
to/TO
2,680/CD
./.
Sekisui/NNP
House/NNP
,/,
which/WDT
gained/VBD
150/CD
Tuesday/NNP
,/,
lost/VBD
70/CD
to/TO
2640/CD
./.
Daiwa/NNP
House/NNP
also/RB
ended/VBD
easier/RB
,/,
but/CC
Misawa/NNP
Home/NNP
was/VBD
firmer/JJR
./.
Pioneer/NNP
Electronic/NNP
and/CC
Sony/NNP
,/,
both/DT
of/IN
which/WDT
dominated/VBD
buying/NN
earlier/RBR
this/DT
month/NN
,/,
continued/VBD
to/TO
fall/VB
Wednesday/NNP
./.
Pioneer/NNP
was/VBD
down/RB
90/CD
at/IN
5,810/CD
,/,
and/CC
Sony/NNP
lost/VBD
40/CD
to/TO
8,550/CD
,/,
down/RB
10/CD
%/NN
from/IN
its/PRP$
record/NN
set/VBN
Oct./NNP
11/CD
./.
London/NNP
share/NN
prices/NNS
closed/VBD
modestly/RB
higher/RBR
largely/RB
on/IN
technical/JJ
factors/NNS
,/,
although/IN
the/DT
market/NN
was/VBD
underpinned/VBN
near/IN
the/DT
end/NN
of/IN
the/DT
session/NN
by/IN
Wall/NNP
Street/NNP
's/POS
firmer/JJR
trend/NN
./.
The/DT
Financial/NNP
Times/NNPS
100-share/JJ
index/NN
finished/VBD
at/IN
2161.9/CD
,/,
up/RB
12.6/CD
points/NNS
./.
The/DT
30-share/JJ
index/NN
ended/VBD
12.6/CD
points/NNS
higher/RBR
at/IN
1751.9/CD
./.
Volume/NN
was/VBD
thin/JJ
at/IN
374.6/CD
million/CD
shares/NNS
traded/VBD
,/,
down/RB
from/IN
405.4/CD
million/CD
Tuesday/NNP
./.
Dealers/NNS
said/VBD
the/DT
market/NN
gained/VBD
some/DT
late/JJ
steam/NN
on/IN
a/DT
flurry/NN
of/IN
buying/NN
by/IN
market-makers/NNS
looking/VBG
at/IN
blue-chip/JJ
issues/NNS
and/CC
stocks/NNS
viewed/VBN
as/IN
oversold/JJ
during/IN
the/DT
market/NN
's/POS
recent/JJ
downtrend/NN
./.
Outside/IN
what/WP
essentially/RB
amounted/VBD
to/TO
a/DT
bookkeeping/NN
exercise/NN
,/,
dealers/NNS
said/VBD
London/NNP
dealings/NNS
were/VBD
largely/RB
dulled/VBN
by/IN
the/DT
absence/NN
of/IN
active/JJ
interest/NN
beyond/IN
the/DT
market-makers/NNS
./.
The/DT
late/JJ
buying/NN
was/VBD
drawn/VBN
into/IN
the/DT
London/NNP
market/NN
,/,
dealers/NNS
added/VBD
,/,
after/IN
Wall/NNP
Street/NNP
showed/VBD
signs/NNS
of/IN
stability/NN
following/VBG
its/PRP$
rocky/JJ
opening/NN
./.
Stocks/NNS
that/WDT
suffered/VBD
on/IN
the/DT
day/NN
were/VBD
those/DT
with/IN
active/JJ
U.S./NNP
operations/NNS
,/,
dealers/NNS
noted/VBD
./.
Among/IN
them/PRP
were/VBD
B.A.T/NNP
Industries/NNPS
,/,
which/WDT
settled/VBD
6/CD
pence/NN
a/DT
share/NN
lower/RBR
at/IN
753/CD
$/$
12.10/CD
Hanson/NNP
,/,
with/IN
15/CD
million/CD
shares/NNS
traded/VBN
,/,
closed/VBD
2.5/CD
lower/RBR
at/IN
212.5/CD
./.
Dealers/NNS
said/VBD
the/DT
shares/NNS
were/VBD
hit/VBN
by/IN
fears/NNS
of/IN
a/DT
slowdown/NN
in/IN
the/DT
U.S./NNP
economy/NN
./.
Cable/NNP
&/CC
Wireless/NNP
benefited/VBD
from/IN
a/DT
market/NN
squeeze/NN
,/,
bouncing/VBG
13/CD
to/TO
498/CD
in/IN
moderately/RB
active/JJ
volume/NN
./.
Jaguar/NNP
was/VBD
boosted/VBN
21/CD
to/TO
715/CD
on/IN
follow-through/JJ
buying/NN
after/IN
Ford/NNP
Motor/NNP
's/POS
announcement/NN
Tuesday/NNP
that/IN
it/PRP
might/MD
be/VB
prepared/JJ
to/TO
mount/VB
a/DT
full/JJ
bid/NN
for/IN
the/DT
U.K./NNP
luxury/NN
auto/NN
maker/NN
./.
It/PRP
was/VBD
further/RBR
helped/VBN
by/IN
Ford/NNP
,/,
which/WDT
announced/VBD
after/IN
London/NNP
's/POS
close/NN
that/IN
it/PRP
had/VBD
raised/VBN
its/PRP$
stake/NN
to/TO
12/CD
%/NN
from/IN
just/RB
under/IN
11/CD
%/NN
on/IN
Tuesday/NNP
./.
Frankfurt/NNP
prices/NNS
closed/VBD
sharply/RB
lower/RBR
in/IN
thin/JJ
dealings/NNS
,/,
hurt/VBN
by/IN
the/DT
roller-coaster/NN
session/NN
on/IN
Wall/NNP
Street/NNP
Tuesday/NNP
and/CC
worries/NNS
about/IN
wage/NN
demands/NNS
by/IN
the/DT
largest/JJS
West/JJ
German/JJ
trade/NN
union/NN
./.
The/DT
German/JJ
stock/NN
index/NN
tumbled/VBD
26.29/CD
to/TO
end/VB
at/IN
``/``
It/PRP
was/VBD
dead/JJ
,/,
listless/JJ
,/,
depressing/JJ
and/CC
negative/JJ
,/,
''/''
said/VBD
one/CD
trader/NN
at/IN
a/DT
U.S./NNP
bank/NN
in/IN
Frankfurt/NNP
./.
``/``
There/EX
was/VBD
little/JJ
turnover/NN
and/CC
nothing/NN
to/TO
stimulate/VB
the/DT
market/NN
./.
''/''
Equities/NNS
tumbled/VBD
at/IN
the/DT
opening/NN
as/IN
Tuesday/NNP
's/POS
gyrations/NNS
on/IN
Wall/NNP
Street/NNP
,/,
where/WRB
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
recovered/VBD
most/JJS
of/IN
an/DT
80-point/JJ
loss/NN
,/,
fueled/VBD
fears/NNS
of/IN
another/DT
stock/NN
market/NN
crash/NN
,/,
brokers/NNS
said/VBD
./.
Tough/JJ
talk/NN
from/IN
trade/NN
union/NN
officials/NNS
at/IN
the/DT
conference/NN
of/IN
the/DT
powerful/JJ
IG/NNP
Metall/NNP
metals/NNS
worker/NN
union/NN
in/IN
West/NNP
Berlin/NNP
raised/VBD
the/DT
specter/NN
of/IN
nationwide/JJ
strikes/NNS
next/JJ
spring/NN
,/,
they/PRP
said/VBD
./.
For/IN
the/DT
1990/CD
wage/NN
negotiations/NNS
,/,
the/DT
IG/NNP
Metall/NNP
is/VBZ
demanding/VBG
a/DT
further/JJ
cut/NN
in/IN
the/DT
German/JJ
workweek/NN
and/CC
steep/JJ
wage/NN
increases/NNS
,/,
which/WDT
could/MD
sharply/RB
increase/VB
the/DT
costs/NNS
for/IN
German/JJ
industry/NN
./.
``/``
All/PDT
the/DT
positive/JJ
figures/NNS
on/IN
the/DT
economy/NN
are/VBP
out/RP
already/RB
,/,
and/CC
people/NNS
are/VBP
focusing/VBG
more/RBR
on/IN
the/DT
dangers/NNS
for/IN
next/JJ
year/NN
,/,
mostly/RB
the/DT
wage/NN
talks/NNS
and/CC
the/DT
parliamentary/JJ
elections/NNS
,/,
''/''
the/DT
U.S./NNP
trader/NN
said/VBD
./.
The/DT
market/NN
also/RB
shrugged/VBD
off/RP
positive/JJ
factors/NNS
,/,
such/JJ
as/IN
higher/JJR
bond/NN
prices/NNS
and/CC
a/DT
slowdown/NN
in/IN
monetary/JJ
growth/NN
in/IN
September/NNP
,/,
traders/NNS
said/VBD
./.
They/PRP
said/VBD
they/PRP
expect/VBP
the/DT
bearish/JJ
mood/NN
to/TO
persist/VB
a/DT
while/NN
longer/RB
,/,
as/IN
trading/NN
volume/NN
is/VBZ
falling/VBG
toward/IN
the/DT
end/NN
of/IN
the/DT
year/NN
and/CC
the/DT
market/NN
is/VBZ
becoming/VBG
more/RBR
volatile/JJ
./.
In/IN
the/DT
auto/NN
sector/NN
,/,
Bayerische/NNP
Motoren/NNP
Werke/NNP
plunged/VBD
14.5/CD
marks/NNS
to/TO
529/CD
marks/NNS
$/$
288/CD
Daimler-Benz/NNP
dropped/VBD
10.5/CD
to/TO
700/CD
,/,
and/CC
Volkswagen/NNP
slumped/VBD
9/CD
to/TO
435.5/CD
./.
Continental/NNP
gave/VBD
up/RP
some/DT
of/IN
its/PRP$
recent/JJ
gains/NNS
,/,
dropping/VBG
8/CD
to/TO
338/CD
,/,
as/IN
rumors/NNS
of/IN
an/DT
impending/JJ
takeover/NN
attempt/NN
for/IN
the/DT
tiremaker/NN
faded/VBD
,/,
brokers/NNS
said/VBD
./.
Deutsche/NNP
Bank/NNP
plummeted/VBD
12/CD
to/TO
645/CD
,/,
hurt/VBN
by/IN
the/DT
general/JJ
mood/NN
./.
Other/JJ
banks/NNS
were/VBD
slightly/RB
more/RBR
resilient/JJ
,/,
with/IN
Dresdner/NNP
Bank/NNP
shedding/VBG
4.8/CD
to/TO
320/CD
,/,
and/CC
Commerzbank/NNP
slipping/VBG
2.5/CD
to/TO
Meanwhile/RB
,/,
Wall/NNP
Street/NNP
's/POS
volatility/NN
unnerved/VBD
investors/NNS
in/IN
other/JJ
markets/NNS
./.
Share/NN
prices/NNS
closed/VBD
lower/RBR
in/IN
Paris/NNP
,/,
Zurich/NNP
,/,
Brussels/NNP
,/,
Milan/NNP
and/CC
Stockholm/NNP
,/,
and/CC
mixed/JJ
in/IN
Amsterdam/NN
./.
Among/IN
Pacific/NNP
markets/NNS
,/,
prices/NNS
closed/VBD
lower/RBR
in/IN
Sydney/NNP
,/,
Seoul/NNP
,/,
Hong/NNP
Kong/NNP
,/,
Manila/NNP
,/,
Singapore/NNP
and/CC
Wellington/NNP
./.
Trading/NN
in/IN
Taipei/NNP
was/VBD
suspended/VBN
for/IN
a/DT
national/JJ
holiday/NN
./.
Here/RB
are/VBP
price/NN
trends/NNS
on/IN
the/DT
world/NN
's/POS
major/JJ
stock/NN
markets/NNS
,/,
as/IN
calculated/VBN
by/IN
Morgan/NNP
Stanley/NNP
Capital/NNP
International/NNP
Perspective/NNP
,/,
Geneva/NNP
./.
To/TO
make/VB
them/PRP
directly/RB
comparable/JJ
,/,
each/DT
index/NN
is/VBZ
based/VBN
on/IN
the/DT
close/NN
of/IN
1969/CD
equaling/VBG
100/CD
./.
The/DT
percentage/NN
change/NN
is/VBZ
since/IN
year-end/NN
./.
French/JJ
chemicals/NNS
group/NN
,/,
Orkem/NNP
S.A./NNP
,/,
said/VBD
Wednesday/NNP
it/PRP
has/VBZ
made/VBN
a/DT
bid/NN
for/IN
control/NN
of/IN
Coates/NNP
Brothers/NNPS
PLC/NNP
,/,
a/DT
British/JJ
manufacturer/NN
of/IN
inks/NNS
and/CC
polyester/NN
resins/NNS
./.
State-controlled/JJ
Orkem/NNP
already/RB
owns/VBZ
40.6/CD
%/NN
of/IN
Coates/NNP
./.
The/DT
remainder/NN
is/VBZ
held/VBN
by/IN
the/DT
public/NN
and/CC
by/IN
family/NN
interests/NNS
,/,
a/DT
spokeswoman/NN
for/IN
the/DT
French/JJ
group/NN
said/VBD
./.
Orkem/NNP
declined/VBD
to/TO
give/VB
details/NNS
of/IN
its/PRP$
offer/NN
,/,
saying/VBG
only/RB
that/IN
the/DT
bid/NN
will/MD
be/VB
submitted/VBN
for/IN
approval/NN
by/IN
the/DT
board/NN
of/IN
the/DT
British/JJ
company/NN
./.
The/DT
Democratic-controlled/JJ
House/NNP
,/,
by/IN
a/DT
margin/NN
of/IN
51/CD
votes/NNS
,/,
failed/VBD
to/TO
override/VB
President/NNP
Bush/NNP
's/POS
veto/NN
of/IN
legislation/NN
renewing/VBG
federal/JJ
support/NN
of/IN
Medicaid/NNP
abortions/NNS
for/IN
poor/JJ
women/NNS
who/WP
are/VBP
victims/NNS
of/IN
rape/NN
and/CC
incest/NN
./.
The/DT
231-191/JJ
roll/NN
call/NN
illustrates/VBZ
the/DT
limits/NNS
of/IN
power/NN
a/DT
resurgent/JJ
abortion-rights/NNS
movement/NN
still/RB
faces/VBZ
./.
It/PRP
continues/VBZ
to/TO
gain/VB
strength/NN
in/IN
the/DT
chamber/NN
but/CC
remains/VBZ
far/RB
short/JJ
of/IN
the/DT
two-thirds/NNS
majority/NN
required/VBN
to/TO
prevail/VB
over/IN
Mr./NNP
Bush/NNP
./.
Democrats/NNPS
voted/VBD
to/TO
override/VB
by/IN
a/DT
3-1/JJ
margin/NN
,/,
but/CC
Republicans/NNPS
were/VBD
equally/RB
firm/JJ
in/IN
support/NN
of/IN
the/DT
president/NN
,/,
who/WP
has/VBZ
threatened/VBN
to/TO
make/VB
abortion/NN
a/DT
decisive/JJ
issue/NN
on/IN
at/IN
least/JJS
three/CD
separate/JJ
fiscal/JJ
1990/CD
spending/NN
bills/NNS
./.
Yesterday/NN
's/POS
vote/NN
dealt/VBD
with/IN
the/DT
largest/JJS
of/IN
these/DT
bills/NNS
,/,
an/DT
estimated/VBN
$/$
156.7/CD
billion/CD
measure/NN
funding/VBG
the/DT
departments/NNS
of/IN
Labor/NNP
,/,
Education/NNP
,/,
and/CC
Health/NNP
and/CC
Human/NNP
Services/NNPS
./.
To/TO
gain/VB
more/JJR
leverage/NN
,/,
abortion-rights/NNS
advocates/NNS
may/MD
seek/VB
to/TO
fold/VB
the/DT
bill/NN
into/IN
an/DT
omnibus/NN
continuing/VBG
resolution/NN
next/JJ
month/NN
./.
But/CC
the/DT
stark/JJ
numbers/NNS
yesterday/NN
--/:
when/WRB
282/CD
votes/NNS
were/VBD
needed/VBN
--/:
indicate/VBP
the/DT
president/NN
is/VBZ
in/IN
a/DT
commanding/JJ
position/NN
for/IN
at/IN
least/JJS
this/DT
year/NN
./.
``/``
Unless/IN
he/PRP
changes/VBZ
,/,
they/PRP
lose/VBP
,/,
''/''
said/VBD
a/DT
Democratic/JJ
leadership/NN
aide/NN
./.
The/DT
action/NN
came/VBD
as/IN
Congress/NNP
sent/VBD
to/TO
the/DT
president/NN
last/JJ
night/NN
a/DT
stopgap/NN
spending/NN
bill/NN
to/TO
keep/VB
the/DT
government/NN
operating/VBG
through/IN
Nov./NNP
15/CD
and/CC
provide/VB
$/$
2.85/CD
billion/CD
in/IN
emergency/NN
funds/NNS
to/TO
assist/VB
in/IN
the/DT
recovery/NN
from/IN
Hurricane/NNP
Hugo/NNP
and/CC
the/DT
California/NNP
earthquake/NN
./.
By/IN
a/DT
lopsided/JJ
97-1/CD
margin/NN
,/,
the/DT
Senate/NNP
approved/VBD
the/DT
measure/NN
after/IN
attaching/VBG
further/JJ
provisions/NNS
sought/VBN
by/IN
the/DT
influential/JJ
California/NNP
delegation/NN
and/CC
,/,
despite/IN
reservations/NNS
,/,
the/DT
House/NNP
adopted/VBD
the/DT
bill/NN
on/IN
a/DT
303-107/JJ
roll/NN
call/NN
./.
The/DT
package/NN
is/VBZ
more/JJR
than/IN
$/$
1/CD
billion/CD
above/IN
the/DT
recommendations/NNS
of/IN
Budget/NNP
Director/NNP
Richard/NNP
Darman/NNP
this/DT
week/NN
./.
But/CC
given/VBN
the/DT
political/JJ
importance/NN
of/IN
California/NNP
,/,
the/DT
administration/NN
was/VBD
content/JJ
to/TO
use/VB
its/PRP$
influence/NN
to/TO
prevent/VB
any/DT
Senate/NNP
amendments/NNS
adding/VBG
further/JJ
new/JJ
appropriations/NNS
./.
The/DT
$/$
2.85/CD
billion/CD
measure/NN
comes/VBZ
on/IN
top/NN
of/IN
$/$
1.1/CD
billion/CD
appropriated/VBN
after/IN
Hugo/NNP
struck/VBD
the/DT
Carolinas/NNPS
and/CC
Caribbean/NNP
last/JJ
month/NN
,/,
and/CC
these/DT
totals/NNS
do/VBP
n't/RB
reflect/VB
the/DT
additional/JJ
benefit/NN
of/IN
low-interest/JJ
disaster/NN
loans/NNS
./.
The/DT
bill/NN
last/JJ
night/NN
includes/VBZ
$/$
500/CD
million/CD
to/TO
help/VB
finance/VB
this/DT
credit/NN
and/CC
further/RBR
raises/VBZ
the/DT
obligation/NN
ceiling/NN
for/IN
the/DT
Small/NNP
Business/NNP
Administration/NNP
sixfold/RB
to/TO
$/$
1.8/CD
billion/CD
to/TO
accommodate/VB
the/DT
expected/JJ
loan/NN
activity/NN
./.
In/IN
direct/JJ
cash/NN
assistance/NN
,/,
$/$
1/CD
billion/CD
is/VBZ
provided/VBN
in/IN
federal/JJ
highway/NN
construction/NN
funds/NNS
,/,
and/CC
$/$
1.35/CD
billion/CD
is/VBZ
divided/VBN
between/IN
general/JJ
emergency/NN
aid/NN
and/CC
a/DT
reserve/NN
to/TO
be/VB
available/JJ
to/TO
the/DT
president/NN
to/TO
meet/VB
unanticipated/JJ
costs/NNS
from/IN
the/DT
two/CD
disasters/NNS
./.
In/IN
the/DT
Senate/NNP
,/,
Majority/NNP
Whip/NNP
Alan/NNP
Cranston/NNP
used/VBD
his/PRP$
position/NN
to/TO
win/VB
not/RB
only/RB
the/DT
expanded/VBN
credit/NN
but/CC
also/RB
more/RBR
generous/JJ
treatment/NN
than/IN
the/DT
House/NNP
had/VBD
permitted/VBN
in/IN
the/DT
distribution/NN
of/IN
highway/NN
funds/NNS
in/IN
the/DT
next/JJ
six/CD
months/NNS
./.
The/DT
emergency/NN
assistance/NN
would/MD
n't/RB
be/VB
counted/VBN
against/IN
a/DT
state/NN
's/POS
normal/JJ
allocation/NN
of/IN
annual/JJ
highway/NN
funds/NNS
,/,
and/CC
the/DT
bill/NN
circumvents/VBZ
existing/VBG
restrictions/NNS
that/WDT
otherwise/RB
would/MD
prevent/VB
the/DT
use/NN
of/IN
federal/JJ
aid/NN
to/TO
repair/VB
a/DT
toll/NN
road/NN
,/,
such/JJ
as/IN
the/DT
San/NNP
Francisco-Oakland/NNP
Bay/NNP
Bridge/NNP
damaged/VBN
in/IN
last/JJ
week/NN
's/POS
earthquake/NN
./.
The/DT
underlying/VBG
stopgap/NN
bill/NN
is/VBZ
the/DT
second/NN
required/VBN
by/IN
Congress/NNP
this/DT
fall/NN
and/CC
,/,
since/IN
the/DT
current/JJ
fiscal/JJ
year/NN
began/VBD
Oct./NNP
1/CD
,/,
only/RB
the/DT
Energy/NNP
and/CC
Interior/NNP
departments/NNS
are/VBP
operating/VBG
on/IN
permanent/JJ
appropriations/NNS
enacted/VBN
into/IN
law/NN
./.
The/DT
standoff/NN
over/IN
abortion/NN
is/VBZ
certain/JJ
to/TO
contribute/VB
to/TO
further/JJ
delays/NNS
and/CC
,/,
apart/RB
from/IN
the/DT
health/NN
and/CC
education/NN
measure/NN
vetoed/VBN
by/IN
Mr./NNP
Bush/NNP
,/,
bills/NNS
funding/VBG
the/DT
District/NNP
of/IN
Columbia/NNP
and/CC
the/DT
entire/JJ
U.S./NNP
foreign-aid/NN
budget/NN
are/VBP
in/IN
jeopardy/NN
because/IN
of/IN
related/JJ
abortion/NN
or/CC
family-planning/NN
issues/NNS
./.
The/DT
vote/NN
yesterday/NN
was/VBD
the/DT
most/RBS
partisan/JJ
in/IN
many/JJ
years/NNS
,/,
and/CC
though/IN
the/DT
Democratic/JJ
leadership/NN
is/VBZ
ambivalent/JJ
about/IN
how/WRB
to/TO
address/VB
the/DT
abortion/NN
issue/NN
,/,
the/DT
debate/NN
is/VBZ
increasingly/RB
measured/VBN
in/IN
party/NN
terms/NNS
./.
The/DT
189/CD
Democrats/NNPS
who/WP
supported/VBD
the/DT
override/NN
yesterday/NN
compare/VBP
with/IN
175/CD
who/WP
initially/RB
backed/VBD
the/DT
rape-and-incest/JJ
exemption/NN
two/CD
weeks/NNS
ago/RB
and/CC
136/CD
last/JJ
year/NN
on/IN
a/DT
similar/JJ
vote/NN
./.
By/IN
comparison/NN
,/,
Republicans/NNPS
have/VBP
held/VBN
closer/RBR
to/TO
the/DT
anti-abortion/JJ
movement/NN
./.
Only/RB
42/CD
GOP/NNP
members/NNS
opposed/VBD
the/DT
president/NN
's/POS
veto/NN
,/,
a/DT
marginal/JJ
increase/NN
over/IN
the/DT
vote/NN
two/CD
weeks/NNS
ago/RB
and/CC
just/RB
12/CD
more/JJR
than/IN
the/DT
30/CD
who/WP
supported/VBD
the/DT
rape-and-incest/JJ
exemption/NN
last/JJ
year/NN
./.
At/IN
a/DT
recent/JJ
White/NNP
House/NNP
meeting/NN
,/,
Rep./NNP
Silvio/NNP
Conte/NNP
R./NNP
,/,
Mass./NNP
the/DT
ranking/JJ
minority/NN
member/NN
of/IN
the/DT
House/NNP
Appropriations/NNPS
Committee/NNP
,/,
argued/VBD
with/IN
his/PRP$
friend/NN
Mr./NNP
Bush/NNP
against/IN
a/DT
veto/NN
,/,
and/CC
though/IN
Mr./NNP
Conte/NNP
and/CC
Minority/NNP
Leader/NNP
Robert/NNP
Michel/NNP
of/IN
Illinois/NNP
stood/VBD
with/IN
the/DT
president/NN
yesterday/NN
,/,
they/PRP
are/VBP
plainly/RB
uncomfortable/JJ
with/IN
his/PRP$
position/NN
./.
``/``
This/DT
is/VBZ
n't/RB
a/DT
political/JJ
issue/NN
,/,
this/DT
is/VBZ
a/DT
moral/JJ
issue/NN
,/,
''/''
said/VBD
Rep./NNP
Henry/NNP
Hyde/NNP
R./NNP
,/,
Ill./NNP
the/DT
most/RBS
eloquent/JJ
spokesman/NN
for/IN
the/DT
anti-abortion/JJ
movement/NN
./.
But/CC
after/IN
years/NNS
of/IN
using/VBG
the/DT
issue/NN
for/IN
its/PRP$
benefit/NN
,/,
the/DT
GOP/NNP
finds/VBZ
its/PRP$
candidates/NNS
on/IN
the/DT
defensive/NN
./.
New/NNP
Jersey/NNP
gubernatorial/JJ
candidate/NN
Rep./NNP
James/NNP
Florio/NNP
pointedly/RB
returned/VBD
from/IN
campaigning/NN
to/TO
vote/VB
against/IN
the/DT
president/NN
yesterday/NN
in/IN
contrast/NN
with/IN
his/PRP$
opponent/NN
,/,
GOP/NNP
Rep./NNP
James/NNP
Courter/NNP
,/,
who/WP
has/VBZ
ardently/RB
supported/VBN
abortion/NN
restrictions/NNS
in/IN
the/DT
past/NN
but/CC
was/VBD
absent/JJ
./.
In/IN
an/DT
extraordinary/JJ
mix/NN
of/IN
cultures/NNS
and/CC
church-state/JJ
powers/NNS
,/,
Rep./NNP
Robert/NNP
Dornan/NNP
R./NNP
,/,
Calif/NNP
./.
his/PRP$
fellow/JJ
Roman/NNPS
Catholics/NNPS
--/:
including/VBG
Mr./NNP
Florio/NNP
--/:
for/IN
having/VBG
the/DT
``/``
chutzpah/NN
''/''
to/TO
disagree/VB
with/IN
the/DT
hierarchy/NN
of/IN
their/PRP$
church/NN
on/IN
abortion/NN
./.
Rep./NNP
Les/NNP
AuCoin/NNP
was/VBD
as/RB
blunt/JJ
on/IN
behalf/NN
of/IN
the/DT
abortion-rights/NNS
movement/NN
./.
``/``
This/DT
may/MD
not/RB
make/VB
George/NNP
Bush/NNP
a/DT
one-term/JJ
president/NN
,/,
''/''
said/VBD
the/DT
Oregon/NNP
liberal/NN
,/,
addressing/VBG
the/DT
Republican/JJ
side/NN
of/IN
the/DT
House/NNP
./.
``/``
But/CC
if/IN
you/PRP
support/VBP
him/PRP
over/IN
rape/NN
victims/NNS
,/,
this/DT
may/MD
be/VB
your/PRP$
last/JJ
term/NN
./.
''/''
Separately/RB
,/,
the/DT
House/NNP
last/JJ
night/NN
approved/VBD
a/DT
nearly/RB
$/$
67/CD
billion/CD
compromise/NN
spending/NN
bill/NN
providing/VBG
the/DT
first/JJ
construction/NN
funds/NNS
for/IN
the/DT
administration/NN
's/POS
ambitious/JJ
space/NN
station/NN
in/IN
fiscal/JJ
1990/CD
and/CC
incorporating/VBG
far-reaching/JJ
provisions/NNS
affecting/VBG
the/DT
federal/JJ
mortgage/NN
market/NN
./.
The/DT
current/JJ
ceiling/NN
on/IN
home/NN
loans/NNS
insured/VBN
by/IN
the/DT
Federal/NNP
Housing/NNP
Administration/NNP
would/MD
be/VB
increased/VBN
to/TO
$/$
124,875/CD
,/,
and/CC
the/DT
bill/NN
gives/VBZ
the/DT
Department/NNP
of/IN
Housing/NNP
and/CC
Urban/NNP
Development/NNP
new/JJ
authority/NN
to/TO
facilitate/VB
the/DT
refinancing/NN
of/IN
subsidized/JJ
loans/NNS
for/IN
low-income/JJ
homeowners/NNS
./.
By/IN
a/DT
325-92/JJ
margin/NN
,/,
the/DT
Appropriations/NNPS
Committee/NNP
leadership/NN
beat/VBD
back/RB
an/DT
early/JJ
challenge/NN
by/IN
House/NNP
Banking/NNP
Chairman/NNP
Henry/NNP
Gonzalez/NNP
(/(
D./NNP
,/,
Texas/NNP
)/)
to/TO
the/DT
FHA/NNP
provision/NN
./.
And/CC
on/IN
a/DT
closer/JJR
250-170/JJ
roll/NN
call/NN
,/,
lawmakers/NNS
upheld/VBD
controversial/JJ
agreements/NNS
made/VBN
by/IN
a/DT
House-Senate/JJ
conference/NN
earmarking/VBG
community/NN
development/NN
funds/NNS
for/IN
more/JJR
than/IN
40/CD
projects/NNS
backed/VBN
by/IN
often/RB
influential/JJ
members/NNS
./.
Rupert/NNP
Murdoch/NNP
acquired/VBD
a/DT
25/CD
%/NN
stake/NN
in/IN
Grupo/NNP
Zeta/NNP
S.A./NNP
,/,
the/DT
leading/VBG
Spanish/JJ
magazine/NN
and/CC
newspaper/NN
publisher/NN
said/VBD
./.
The/DT
transaction/NN
called/VBD
for/IN
Mr./NNP
Murdoch/NNP
's/POS
News/NNP
International/NNP
PLC/NNP
,/,
a/DT
unit/NN
of/IN
Australia-based/JJ
News/NNP
Corp./NNP
,/,
to/TO
subscribe/VB
to/TO
a/DT
rights/NNS
issue/NN
by/IN
Zeta/NNP
valued/VBN
at/IN
6.65/CD
billion/CD
pesetas/NNS
$/$
57/CD
million/CD
Also/RB
participating/VBG
in/IN
the/DT
issue/NN
was/VBD
Servifilm/NNP
Spain/NNP
Cinematografica/NNP
S.A/NNP
./.
The/DT
film/NN
producer/NN
,/,
owned/VBN
by/IN
Madrid-based/JJ
financier/NN
Jacques/NNP
Hachuel/NNP
,/,
received/VBD
a/DT
5/CD
%/NN
stake/NN
in/IN
the/DT
Barcelona-based/JJ
publishing/NN
group/NN
./.
The/DT
cash/NN
injection/NN
boosted/VBD
Zeta/NNP
's/POS
capital/NN
more/RBR
than/IN
four-fold/RB
,/,
to/TO
8.47/CD
billion/CD
pesetas/NNS
from/IN
1.82/CD
billion/CD
pesetas/NNS
,/,
greatly/RB
enhancing/VBG
the/DT
group/NN
's/POS
ability/NN
to/TO
make/VB
investments/NNS
,/,
Zeta/NNP
officials/NNS
said/VBD
./.
Following/VBG
its/PRP$
failure/NN
last/JJ
month/NN
to/TO
win/VB
a/DT
license/NN
for/IN
one/CD
of/IN
Spain/NNP
's/POS
first/JJ
three/CD
private/JJ
television/NN
stations/NNS
,/,
Zeta/NNP
is/VBZ
seeking/VBG
investment/NN
opportunities/NNS
in/IN
communications/NNS
and/CC
publishing/NN
./.
With/IN
annual/JJ
sales/NNS
of/IN
about/IN
30/CD
billion/CD
pesetas/NNS
,/,
Zeta/NNP
publishes/VBZ
over/IN
a/DT
dozen/NN
magazines/NNS
,/,
including/VBG
the/DT
popular/JJ
Tiempo/NNP
,/,
Interviu/NNP
and/CC
Panorama/NNP
,/,
and/CC
three/CD
regional/JJ
dailies/NNS
./.
Chairman/NNP
Antonio/NNP
Asensio/NNP
will/MD
retain/VB
a/DT
70/CD
%/NN
share/NN
in/IN
Zeta/NNP
./.
The/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
is/VBZ
expected/VBN
to/TO
launch/VB
its/PRP$
own/JJ
program/NN
trading/NN
vehicle/NN
today/NN
,/,
just/RB
as/IN
controversy/NN
over/IN
this/DT
trading/NN
strategy/NN
heats/VBZ
up/RB
./.
The/DT
Big/NNP
Board/NNP
this/DT
morning/NN
plans/VBZ
to/TO
begin/VB
trading/VBG
its/PRP$
Exchange/NNP
Stock/NNP
Portfolio/NNP
``/``
basket/NN
''/''
product/NN
,/,
the/DT
first/JJ
program-trading/NN
vehicle/NN
carrying/VBG
the/DT
exchange/NN
's/POS
seal/NN
of/IN
approval/NN
./.
ESPs/NNPS
will/MD
allow/VB
institutional/JJ
investors/NNS
to/TO
buy/VB
or/CC
sell/VB
all/DT
500/CD
stocks/NNS
in/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
index/NN
in/IN
a/DT
single/JJ
trade/NN
of/IN
a/DT
minimum/NN
of/IN
$/$
5/CD
million/CD
./.
``/``
Customized/JJ
''/''
baskets/NNS
of/IN
fewer/JJR
stocks/NNS
will/MD
also/RB
be/VB
available/JJ
./.
The/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
gave/VBD
provisional/JJ
six-month/JJ
approval/NN
to/TO
the/DT
Big/NNP
Board/NNP
basket/NN
at/IN
a/DT
meeting/NN
late/JJ
yesterday/NN
./.
The/DT
SEC/NNP
at/IN
the/DT
same/JJ
time/NN
approved/VBD
a/DT
similar/JJ
but/CC
smaller/JJR
basket/NN
product/NN
on/IN
the/DT
Chicago/NNP
Board/NNP
Options/NNPS
Exchange/NNP
,/,
where/WRB
the/DT
minimum/NN
will/MD
be/VB
$/$
1.7/CD
million/CD
./.
Also/RB
approved/VBN
was/VBD
a/DT
plan/NN
to/TO
trade/VB
stock/NN
portfolios/NNS
by/IN
computer/NN
after/IN
regular/JJ
hours/NNS
on/IN
the/DT
Midwest/NNP
Stock/NNP
Exchange/NNP
./.
The/DT
basket/NN
products/NNS
are/VBP
``/``
an/DT
evolutionary/JJ
step/NN
''/''
in/IN
solving/VBG
problems/NNS
in/IN
trading/NN
big/JJ
blocks/NNS
of/IN
stock/NN
that/WDT
came/VBD
to/TO
light/NN
in/IN
the/DT
1987/CD
market/NN
crash/NN
,/,
said/VBD
SEC/NNP
Commissioner/NNP
Joseph/NNP
Grundfest/NNP
./.
New/JJ
SEC/NNP
Chairman/NNP
Richard/NNP
Breeden/NNP
,/,
overseeing/VBG
his/PRP$
first/JJ
public/JJ
meeting/NN
,/,
said/VBD
there/EX
have/VBP
been/VBN
concerns/NNS
that/IN
the/DT
Big/NNP
Board/NNP
's/POS
basket/NN
could/MD
attract/VB
investors/NNS
with/IN
a/DT
``/``
short-term/JJ
perspective/NN
''/''
who/WP
would/MD
rapidly/RB
turn/VB
over/RP
the/DT
product/NN
,/,
thus/RB
increasing/VBG
volatility/NN
./.
But/CC
Richard/NNP
Ketchum/NNP
,/,
the/DT
SEC/NNP
's/POS
market/NN
regulation/NN
chief/NN
,/,
said/VBD
he/PRP
did/VBD
n't/RB
believe/VB
``/``
this/DT
will/MD
spawn/VB
dramatic/JJ
new/JJ
program-trading/NN
strategies/NNS
that/WDT
will/MD
be/VB
destabilizing/JJ
./.
''/''
The/DT
baskets/NNS
on/IN
the/DT
Big/NNP
Board/NNP
and/CC
CBOE/NNP
--/:
which/WDT
involve/VBP
the/DT
actual/JJ
S&P/NNP
stocks/NNS
,/,
unlike/IN
the/DT
stock-index/NN
contracts/NNS
currently/RB
traded/VBN
on/IN
the/DT
Chicago/NNP
futures/NNS
markets/NNS
,/,
and/CC
index/NN
options/NNS
on/IN
the/DT
CBOE/NNP
--/:
will/MD
begin/VB
trading/NN
as/IN
critics/NNS
step/VBP
up/RP
their/PRP$
attacks/NNS
on/IN
program/NN
trading/NN
and/CC
its/PRP$
contributions/NNS
to/TO
the/DT
stock/NN
market/NN
's/POS
wild/JJ
price/NN
swings/NNS
./.
The/DT
Big/NNP
Board/NNP
argues/VBZ
that/IN
its/PRP$
new/JJ
product/NN
will/MD
help/VB
rather/RB
than/IN
hurt/VB
the/DT
situation/NN
by/IN
possibly/RB
drawing/VBG
business/NN
from/IN
more-volatile/JJR
forms/NNS
of/IN
program/NN
trading/NN
./.
ESPs/NNS
are/VBP
also/RB
an/DT
attempt/NN
by/IN
the/DT
Big/NNP
Board/NNP
to/TO
head/VB
off/RP
the/DT
exodus/NN
of/IN
program/NN
trading/NN
business/NN
to/TO
overseas/JJ
markets/NNS
such/JJ
as/IN
London/NNP
./.
Big/NNP
Board/NNP
officials/NNS
also/RB
hope/VBP
Japanese/JJ
investors/NNS
will/MD
become/VB
interested/JJ
in/IN
the/DT
exchange/NN
's/POS
product/NN
./.
Already/RB
,/,
many/JJ
of/IN
the/DT
Big/NNP
Board/NNP
's/POS
own/JJ
floor/NN
traders/NNS
are/VBP
warning/VBG
that/IN
the/DT
ESP/NNP
baskets/NNS
are/VBP
risky/JJ
and/CC
not/RB
in/IN
the/DT
best/JJS
interests/NNS
of/IN
the/DT
investing/VBG
public/NN
./.
The/DT
400-member/JJ
Alliance/NNP
of/IN
Floor/NNP
Brokers/NNPS
said/VBD
the/DT
new/JJ
product/NN
,/,
with/IN
the/DT
$/$
5/CD
million/CD
minimum/NN
,/,
will/MD
benefit/VB
only/JJ
big/JJ
institutional/JJ
investors/NNS
and/CC
could/MD
lead/VB
to/TO
``/``
wild/JJ
spasms/NNS
of/IN
volatility/NN
./.
''/''
Stockbrokers/NNS
who/WP
cater/VBP
to/TO
individual/JJ
investors/NNS
said/VBD
the/DT
Big/NNP
Board/NNP
's/POS
new/JJ
product/NN
confirms/VBZ
the/DT
exchange/NN
does/VBZ
n't/RB
want/VB
to/TO
curtail/VB
program/NN
trading/NN
,/,
which/WDT
last/JJ
month/NN
accounted/VBD
for/IN
a/DT
record/NN
13.8/CD
%/NN
of/IN
the/DT
exchange/NN
's/POS
average/JJ
daily/JJ
volume/NN
./.
``/``
The/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
is/VBZ
losing/VBG
its/PRP$
cool/NN
here/RB
,/,
''/''
said/VBD
James/NNP
Andrews/NNP
,/,
head/NN
of/IN
institutional/JJ
trading/NN
at/IN
Janney/NNP
Montgomery/NNP
Scott/NNP
Inc./NNP
in/IN
Philadelphia/NNP
./.
The/DT
new/JJ
stock/NN
baskets/NNS
``/``
are/VBP
going/VBG
to/TO
make/VB
it/PRP
easier/RBR
for/IN
program/NN
trading/NN
to/TO
be/VB
done/VBN
./.
And/CC
it/PRP
's/VBZ
going/VBG
to/TO
be/VB
done/VBN
more/RBR
frequently/RB
as/IN
the/DT
result/NN
of/IN
having/VBG
more/JJR
access/NN
to/TO
it/PRP
at/IN
different/JJ
places/NNS
./.
''/''
Both/DT
the/DT
Big/NNP
Board/NNP
's/POS
Exchange/NNP
Stock/NNP
Portfolio/NNP
and/CC
the/DT
Chicago/NNP
exchange/NN
's/POS
Market/NNP
Basket/NNP
are/VBP
designed/VBN
for/IN
institutional/JJ
investors/NNS
./.
The/DT
Big/NNP
Board/NNP
lists/VBZ
its/PRP$
targets/NNS
as/IN
pension/NN
plans/NNS
,/,
mutual/JJ
fund/NN
managers/NNS
and/CC
index-arbitrage/NN
traders/NNS
./.
In/IN
index/NN
arbitrage/NN
,/,
program/NN
traders/NNS
buy/VBP
and/CC
sell/VBP
stocks/NNS
and/CC
stock-index/NN
futures/NNS
to/TO
profit/VB
from/IN
small/JJ
price/NN
discrepancies/NNS
between/IN
the/DT
markets/NNS
./.
At/IN
the/DT
same/JJ
time/NN
,/,
only/RB
four/CD
securities/NNS
firms/NNS
have/VBP
signed/VBN
up/RB
with/IN
the/DT
Big/NNP
Board/NNP
to/TO
buy/VB
and/CC
sell/VB
ESPs/NNPS
as/IN
market/NN
makers/NNS
,/,
an/DT
unenthusiastic/JJ
response/NN
./.
The/DT
market/NN
makers/NNS
so/RB
far/RB
are/VBP
CS/NNP
First/NNP
Boston/NNP
Group/NNP
's/POS
First/NNP
Boston/NNP
Corp./NNP
unit/NN
,/,
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
,/,
PaineWebber/NNP
Group/NNP
Inc./NNP
and/CC
Salomon/NNP
Inc./NNP
's/POS
Salomon/NNP
Brothers/NNPS
Inc./NNP
unit/NN
./.
Kidder/NNP
,/,
Peabody/NNP
&/CC
Co./NNP
,/,
a/DT
General/NNP
Electric/NNP
Co./NNP
unit/NN
that/WDT
has/VBZ
become/VBN
the/DT
biggest/JJS
program/NN
trader/NN
along/IN
with/IN
Morgan/NNP
Stanley/NNP
,/,
is/VBZ
n't/RB
a/DT
market/NN
maker/NN
,/,
although/IN
the/DT
Big/NNP
Board/NNP
hopes/VBZ
that/WDT
will/MD
change/VB
./.
Similarly/RB
,/,
the/DT
Big/NNP
Board/NNP
hopes/VBZ
to/TO
entice/VB
Merrill/NNP
Lynch/NNP
&/CC
Co/NNP
./.
Neither/DT
has/VBZ
plans/VBZ
to/TO
be/VB
a/DT
market/NN
maker/NN
for/IN
now/RB
./.
Traders/NNS
said/VBD
major/JJ
securities/NNS
firms/NNS
are/VBP
reluctant/JJ
to/TO
become/VB
market/NN
makers/NNS
because/IN
they/PRP
fear/VBP
the/DT
baskets/NNS
may/MD
attract/VB
only/RB
limited/JJ
trading/NN
./.
Big/NNP
Board/NNP
officials/NNS
say/VBP
only/RB
25/CD
contracts/NNS
a/DT
day/NN
may/MD
trade/VB
at/IN
first/RB
,/,
equivalent/JJ
to/TO
a/DT
day/NN
's/POS
action/NN
at/IN
a/DT
small/JJ
,/,
regional/JJ
exchange/NN
./.
Even/RB
though/IN
the/DT
Big/NNP
Board/NNP
says/VBZ
its/PRP$
product/NN
represents/VBZ
a/DT
post-crash/JJ
``/``
reform/NN
,/,
''/''
some/DT
traders/NNS
suggest/VBP
that/IN
if/IN
the/DT
new/JJ
basket/NN
had/VBD
been/VBN
trading/VBG
during/IN
this/DT
month/NN
's/POS
Friday/NNP
the/DT
13th/JJ
market/NN
plunge/NN
,/,
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
might/MD
have/VB
dropped/VBD
more/JJR
than/IN
the/DT
190/CD
points/NNS
it/PRP
did/VBD
./.
With/IN
the/DT
futures/NNS
locked/VBN
into/IN
a/DT
trading/NN
halt/NN
Oct./NNP
13/CD
and/CC
trading/NN
in/IN
some/DT
individual/JJ
stock/NN
difficult/JJ
,/,
program/NN
traders/NNS
would/MD
have/VB
undoubtedly/RB
fled/VBN
to/TO
the/DT
basket/NN
system/NN
,/,
the/DT
traders/NNS
say/VBP
./.
``/``
If/IN
we/PRP
had/VBD
the/DT
baskets/NNS
,/,
we/PRP
would/MD
be/VB
leaving/VBG
in/IN
caskets/NNS
,/,
''/''
one/CD
trader/NN
said/VBD
./.
The/DT
SEC/NNP
's/POS
Mr./NNP
Breeden/NNP
said/VBD
the/DT
after-hours/JJ
trading/NN
on/IN
the/DT
Midwest/NNP
exchange/NN
would/MD
help/VB
the/DT
U.S./NNP
win/VB
back/NN
business/NN
that/WDT
has/VBZ
moved/VBN
overseas/RB
to/TO
conduct/VB
after-hours/JJ
trades/NNS
./.
Comprehensive/NNP
Care/NNP
Corp./NNP
,/,
which/WDT
has/VBZ
agreed/VBN
to/TO
be/VB
acquired/VBN
by/IN
closely/RB
held/VBN
First/NNP
Hospital/NNP
Corp./NNP
,/,
reported/VBD
a/DT
$/$
4.7/CD
million/CD
loss/NN
for/IN
its/PRP$
Aug./NNP
31/CD
first/JJ
quarter/NN
and/CC
said/VBD
it/PRP
is/VBZ
negotiating/VBG
an/DT
extension/NN
of/IN
senior/JJ
bank/NN
debt/NN
past/IN
its/PRP$
Oct./NNP
18/CD
due/JJ
date/NN
./.
In/IN
composite/JJ
trading/NN
yesterday/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Comprehensive/NNP
Care/NNP
shares/NNS
plunged/VBD
$/$
3.625/CD
to/TO
close/VB
at/IN
$/$
4.75/CD
on/IN
volume/NN
of/IN
1,177,000/CD
shares/NNS
./.
The/DT
loss/NN
in/IN
Comprehensive/NNP
Care/NNP
's/POS
latest/JJS
quarter/NN
is/VBZ
equal/JJ
to/TO
46/CD
cents/NNS
a/DT
share/NN
./.
In/IN
the/DT
year-earlier/JJ
quarter/NN
,/,
Comprehensive/NNP
Care/NNP
earned/VBD
$/$
1.6/CD
million/CD
,/,
or/CC
18/CD
cents/NNS
a/DT
share/NN
./.
Revenue/NN
in/IN
the/DT
latest/JJS
quarter/NN
fell/VBD
17/CD
%/NN
to/TO
$/$
44/CD
million/CD
from/IN
$/$
53.2/CD
million/CD
,/,
the/DT
company/NN
said/VBD
,/,
reflecting/VBG
poor/JJ
utilization/NN
of/IN
the/DT
company/NN
's/POS
facilities/NNS
and/CC
its/PRP$
behavioral/JJ
medicine/NN
contracts/NNS
./.
Comprehensive/NNP
Care/NNP
shareholders/NNS
have/VBP
approved/VBN
acquisition/NN
of/IN
the/DT
developer/NN
and/CC
operator/NN
of/IN
Care-Unit/NNP
chemical/NN
dependency/NN
and/CC
psychiatric/JJ
programs/NNS
for/IN
about/IN
$/$
58/CD
million/CD
in/IN
cash/NN
,/,
notes/NNS
and/CC
stock/NN
of/IN
First/NNP
Hospital/NNP
,/,
Norfolk/NNP
,/,
Va/NNP
./.
The/DT
price/NN
was/VBD
reduced/VBN
last/JJ
August/NNP
from/IN
an/DT
indicated/VBN
value/NN
of/IN
$/$
76/CD
million/CD
./.
Comprehensive/NNP
Care/NNP
said/VBD
First/NNP
Hospital/NNP
had/VBD
advised/VBN
it/PRP
that/IN
both/DT
bank/NN
debt/NN
and/CC
senior/JJ
notes/NNS
would/MD
be/VB
repaid/VBN
after/IN
the/DT
acquisition/NN
,/,
although/IN
it/PRP
is/VBZ
n't/RB
assured/VBN
the/DT
acquisition/NN
will/MD
be/VB
completed/VBN
./.
If/IN
it/PRP
is/VBZ
n't/RB
completed/VBN
,/,
Comprehensive/NNP
Care/NNP
said/VBD
it/PRP
would/MD
be/VB
``/``
required/VBN
to/TO
promptly/RB
restructure/VB
its/PRP$
debt/NN
./.
''/''
First/NNP
Hospital/NNP
advised/VBD
Comprehensive/NNP
Care/NNP
that/IN
an/DT
agent/NN
for/IN
the/DT
financial/JJ
institutions/NNS
providing/VBG
financing/NN
of/IN
its/PRP$
acquisition/NN
is/VBZ
scheduled/VBN
to/TO
make/VB
a/DT
final/JJ
credit/NN
determination/NN
tomorrow/NN
,/,
and/CC
that/IN
a/DT
favorable/JJ
determination/NN
could/MD
result/VB
in/IN
a/DT
reorganization/NN
at/IN
Comprehensive/NNP
Care/NNP
``/``
by/IN
the/DT
end/NN
of/IN
October/NNP
./.
''/''
Failure/NN
to/TO
win/VB
such/JJ
a/DT
determination/NN
,/,
however/RB
,/,
would/MD
lead/VB
Comprehensive/NNP
Care/NNP
directors/NNS
to/TO
``/``
consider/VB
various/JJ
alternatives/NNS
,/,
''/''
Comprehensive/NNP
Care/NNP
said/VBD
,/,
without/IN
elaborating/VBG
./.
Separately/RB
,/,
First/NNP
Hospital/NNP
reported/VBD
a/DT
1.6/CD
%/NN
rise/NN
in/IN
net/JJ
income/NN
to/TO
$/$
6.1/CD
million/CD
for/IN
its/PRP$
year/NN
ended/VBN
June/NNP
30/CD
on/IN
a/DT
27/CD
%/NN
increase/NN
in/IN
revenue/NN
to/TO
$/$
110.6/CD
million/CD
./.
It/PRP
said/VBD
,/,
however/RB
,/,
that/IN
net/JJ
income/NN
for/IN
the/DT
two-month/JJ
period/NN
ended/VBN
Aug./NNP
31/CD
plunged/VBD
to/TO
$/$
150,000/CD
from/IN
$/$
851,000/CD
in/IN
the/DT
prior/JJ
year/NN
on/IN
a/DT
33/CD
%/NN
rise/NN
in/IN
revenue/NN
to/TO
$/$
21.4/CD
million/CD
./.
A/DT
group/NN
including/VBG
New/NNP
York/NNP
investors/NNS
Douglas/NNP
A./NN
Kass/NNP
and/CC
Anthony/NNP
Pedone/NNP
holds/VBZ
the/DT
equivalent/NN
of/IN
a/DT
12.6/CD
%/NN
stake/NN
in/IN
H.H./NNP
Robertson/NNP
Co./NNP
's/POS
common/JJ
shares/NNS
outstanding/JJ
,/,
according/VBG
to/TO
a/DT
filing/NN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
./.
Officials/NNS
of/IN
Pittsburgh-based/JJ
H.H./NNP
Robertson/NNP
,/,
which/WDT
makes/VBZ
steel/NN
roofs/NNS
,/,
store/NN
fronts/NNS
and/CC
building/NN
parts/NNS
,/,
declined/VBD
comment/NN
./.
As/IN
reported/VBN
last/JJ
month/NN
,/,
Mr./NNP
Kass/NNP
said/VBD
he/PRP
was/VBD
interested/JJ
in/IN
making/VBG
an/DT
offer/NN
to/TO
buy/VB
H.H./NNP
Robertson/NNP
for/IN
$/$
13/CD
a/DT
share/NN
./.
In/IN
the/DT
SEC/NNP
filing/NN
,/,
the/DT
Kass-Pedone/NNP
group/NN
said/VBD
it/PRP
intends/VBZ
to/TO
acquire/VB
additional/JJ
H.H./NNP
Robertson/NNP
shares/NNS
``/``
with/IN
a/DT
view/NN
towards/IN
a/DT
possible/JJ
change/NN
in/IN
control/NN
of/IN
the/DT
company/NN
./.
''/''
It/PRP
has/VBZ
not/RB
,/,
however/RB
,/,
made/VBN
a/DT
formal/JJ
proposal/NN
./.
The/DT
group/NN
also/RB
is/VBZ
engaged/VBN
in/IN
talks/NNS
with/IN
third/JJ
parties/NNS
regarding/VBG
obtaining/VBG
financing/NN
to/TO
buy/VB
more/JJR
shares/NNS
,/,
but/CC
no/DT
agreements/NNS
have/VBP
yet/RB
been/VBN
reached/VBN
,/,
the/DT
filing/NN
said/VBD
./.
The/DT
group/NN
controls/VBZ
795,900/CD
H.H./NNP
Robertson/NNP
common/JJ
shares/NNS
,/,
assuming/VBG
exercise/NN
of/IN
an/DT
option/NN
it/PRP
acquired/VBD
from/IN
Executive/NNP
Life/NNP
Insurance/NNP
Co./NNP
to/TO
buy/VB
497,400/CD
shares/NNS
./.
Its/PRP$
stake/NN
includes/VBZ
106,100/CD
shares/NNS
bought/VBN
in/IN
the/DT
open/JJ
market/NN
from/IN
Aug./NNP
30/CD
to/TO
Oct./NNP
18/CD
for/IN
$/$
10.375/CD
to/TO
$/$
12.125/CD
a/DT
share/NN
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
H.H./NNP
Robertson/NNP
closed/VBD
at/IN
$/$
11.625/CD
,/,
up/RB
62.5/CD
cents/NNS
./.
After/IN
coming/VBG
close/RB
to/TO
a/DT
partial/JJ
settlement/NN
a/DT
year/NN
ago/RB
,/,
shareholders/NNS
who/WP
filed/VBD
civil/JJ
suits/NNS
against/IN
Ivan/NNP
F./NNP
Boesky/NNP
and/CC
the/DT
partnerships/NNS
he/PRP
once/RB
controlled/VBD
again/RB
are/VBP
approaching/VBG
an/DT
accord/NN
,/,
people/NNS
familiar/JJ
with/IN
the/DT
case/NN
said/VBD
./.
Meanwhile/RB
,/,
within/IN
the/DT
next/JJ
few/JJ
weeks/NNS
,/,
the/DT
limited/JJ
partners/NNS
in/IN
Ivan/NNP
F./NNP
Boesky/NNP
&/CC
Co/NNP
./.
L.P./NN
are/VBP
expected/VBN
to/TO
reach/VB
a/DT
partial/JJ
settlement/NN
with/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
regarding/VBG
the/DT
distribution/NN
of/IN
the/DT
$/$
330/CD
million/CD
in/IN
partnership/NN
assets/NNS
,/,
said/VBD
one/CD
of/IN
the/DT
individuals/NNS
./.
Under/IN
the/DT
terms/NNS
of/IN
the/DT
settlement/NN
,/,
the/DT
limited/JJ
partners/NNS
would/MD
drop/VB
their/PRP$
civil/JJ
suits/NNS
against/IN
Drexel/NNP
,/,
now/RB
pending/VBG
in/IN
federal/JJ
court/NN
in/IN
New/NNP
York/NNP
,/,
another/DT
individual/NN
said/VBD
./.
Attorneys/NNS
involved/VBN
in/IN
the/DT
talks/NNS
said/VBD
that/IN
the/DT
parties/NNS
were/VBD
closer/JJR
to/TO
accord/VB
than/IN
they/PRP
were/VBD
a/DT
year/NN
ago/RB
,/,
when/WRB
reports/NNS
of/IN
an/DT
imminent/JJ
agreement/NN
circulated/VBD
./.
One/CD
individual/NN
said/VBD
the/DT
shareholders/NNS
'/POS
accord/NN
was/VBD
``/``
well/RB
worked/VBN
out/RP
./.
''/''
However/RB
,/,
less/RBR
optimistic/JJ
attorneys/NNS
warned/VBD
that/IN
because/IN
of/IN
the/DT
tangle/NN
of/IN
numerous/JJ
defendants/NNS
and/CC
plaintiffs/NNS
with/IN
overlapping/VBG
claims/NNS
,/,
there/EX
is/VBZ
always/RB
the/DT
possibility/NN
that/IN
the/DT
talks/NNS
will/MD
again/RB
fall/VB
apart/RB
./.
A/DT
shareholders/NNS
'/POS
accord/NN
would/MD
provide/VB
the/DT
first/JJ
restitution/NN
to/TO
thousands/NNS
of/IN
individuals/NNS
and/CC
institutions/NNS
claiming/VBG
losses/NNS
as/IN
a/DT
result/NN
of/IN
insider/NN
trading/NN
by/IN
Boesky/NNP
&/CC
Co./NNP
,/,
once/RB
the/DT
largest/JJS
arbitrage/NN
fund/NN
in/IN
the/DT
U.S/NNP
./.
The/DT
plaintiffs/NNS
are/VBP
investors/NNS
who/WP
bought/VBD
and/CC
sold/VBD
securities/NNS
in/IN
which/WDT
Mr./NNP
Boesky/NNP
and/CC
his/PRP$
partnerships/NNS
were/VBD
dealing/VBG
./.
Some/DT
claim/NN
they/PRP
suffered/VBD
losses/NNS
because/IN
they/PRP
sold/VBD
while/IN
he/PRP
was/VBD
buying/VBG
and/CC
others/NNS
because/IN
they/PRP
bought/VBD
while/IN
he/PRP
was/VBD
selling/VBG
./.
Stocks/NNS
involved/VBN
in/IN
the/DT
shareholder/NN
suits/NNS
include/VBP
Union/NNP
Carbide/NNP
,/,
RJR/NNP
Nabisco/NNP
,/,
American/NNP
Natural/NNP
Resources/NNPS
,/,
Boise/NNP
Cascade/NNP
Corp./NNP
,/,
General/NNP
Foods/NNPS
Corp./NNP
,/,
Houston/NNP
Natural/NNP
Gas/NNP
and/CC
FMC/NNP
Corp/NNP
./.
There/EX
are/VBP
at/IN
least/JJS
27/CD
class-action/JJ
shareholder/NN
suits/NNS
that/WDT
have/VBP
been/VBN
consolidated/VBN
in/IN
federal/JJ
court/NN
in/IN
New/NNP
York/NNP
under/IN
U.S./NNP
District/NNP
Judge/NNP
Milton/NNP
Pollack/NNP
./.
Among/IN
the/DT
defendants/NNS
are/VBP
Mr./NNP
Boesky/NNP
;/:
the/DT
now-defunct/JJ
Ivan/NNP
F./NNP
Boesky/NNP
&/CC
Co./NNP
;/:
Mr./NNP
Boesky/NNP
's/POS
main/JJ
underwriter/NN
,/,
Drexel/NNP
Burnham/NNP
;/:
and/CC
Cambrian/NNP
&/CC
General/NNP
Securities/NNPS
PLC/NNP
,/,
a/DT
British/JJ
investment/NN
fund/NN
once/RB
controlled/VBN
by/IN
Mr./NNP
Boesky/NNP
./.
Individuals/NNS
familiar/JJ
with/IN
the/DT
negotiations/NNS
said/VBD
the/DT
partial/JJ
settlement/NN
being/VBG
negotiated/VBN
would/MD
remove/VB
the/DT
Boesky/NNP
partnership/NN
,/,
the/DT
British/JJ
fund/NN
and/CC
Mr./NNP
Boesky/NNP
as/IN
defendants/NNS
,/,
while/IN
Drexel/NNP
and/CC
other/JJ
defendants/NNS
would/MD
remain/VB
./.
Charles/NNP
Davidow/NNP
,/,
of/IN
the/DT
Washington/NNP
,/,
D.C.-based/JJ
law/NN
firm/NN
Wilmer/NNP
,/,
Cutler/NNP
&/CC
Pickering/NNP
,/,
which/WDT
represents/VBZ
Mr./NNP
Boesky/NNP
in/IN
this/DT
matter/NN
,/,
said/VBD
only/RB
that/IN
``/``
discussions/NNS
are/VBP
under/IN
way/NN
./.
There/EX
are/VBP
no/DT
agreements/NNS
yet/RB
./.
''/''
It/PRP
has/VBZ
been/VBN
three/CD
years/NNS
since/IN
Mr./NNP
Boesky/NNP
,/,
now/RB
in/IN
prison/NN
,/,
agreed/VBD
to/TO
pay/VB
a/DT
$/$
100/CD
million/CD
fine/NN
to/TO
settle/VB
the/DT
government/NN
's/POS
charges/NNS
that/IN
he/PRP
had/VBD
traded/VBN
illegally/RB
using/VBG
insider/NN
information/NN
./.
Out/IN
of/IN
this/DT
,/,
the/DT
government/NN
set/VBN
up/RP
a/DT
$/$
50/CD
million/CD
fund/NN
for/IN
plaintiffs/NNS
who/WP
can/MD
prove/VB
their/PRP$
financial/JJ
losses/NNS
./.
According/VBG
to/TO
William/NNP
Orbe/NNP
,/,
an/DT
attorney/NN
at/IN
Grais/NNP
&/CC
Richards/NNP
,/,
the/DT
escrow/NN
agents/NNS
for/IN
the/DT
fund/NN
,/,
as/IN
of/IN
Sept./NNP
30/CD
the/DT
fund/NN
amounted/VBD
to/TO
$/$
60.5/CD
million/CD
./.
Separately/RB
,/,
attorneys/NNS
for/IN
the/DT
42/CD
or/CC
so/RB
limited/JJ
partners/NNS
have/VBP
had/VBN
serious/JJ
discussions/NNS
that/WDT
could/MD
lead/VB
to/TO
the/DT
distribution/NN
of/IN
the/DT
partnership/NN
's/POS
assets/NNS
./.
The/DT
limited/JJ
partners/NNS
include/VBP
insurance/NN
companies/NNS
,/,
financial/JJ
institutions/NNS
and/CC
individual/JJ
investors/NNS
./.
An/DT
agreement/NN
with/IN
Drexel/NNP
regarding/VBG
the/DT
limited/JJ
partners/NNS
'/POS
investments/NNS
is/VBZ
an/DT
essential/JJ
step/NN
toward/IN
getting/VBG
their/PRP$
money/NN
back/RB
./.
This/DT
is/VBZ
because/IN
a/DT
Delaware/NNP
court/NN
earlier/RBR
this/DT
year/NN
said/VBD
that/IN
Drexel/NNP
is/VBZ
entitled/VBN
to/TO
get/VB
its/PRP$
money/NN
back/RB
before/IN
or/CC
at/IN
the/DT
same/JJ
time/NN
as/IN
the/DT
limited/JJ
partners/NNS
./.
Drexel/NNP
is/VBZ
owed/VBN
$/$
20/CD
million/CD
by/IN
the/DT
partnership/NN
./.
An/DT
individual/NN
familiar/JJ
with/IN
the/DT
negotiations/NNS
said/VBD
that/IN
whatever/WDT
investments/NNS
the/DT
limited/JJ
partners/NNS
do/VBP
not/RB
recoup/VB
from/IN
the/DT
$/$
330/CD
million/CD
in/IN
partnership/NN
assets/NNS
,/,
they/PRP
will/MD
receive/VB
from/IN
the/DT
$/$
350/CD
million/CD
restitution/NN
fund/NN
available/JJ
as/IN
a/DT
result/NN
of/IN
Drexel/NNP
's/POS
settlement/NN
with/IN
the/DT
government/NN
in/IN
December/NNP
1988/CD
./.
Drexel/NNP
agreed/VBD
to/TO
plead/VB
guilty/JJ
to/TO
six/CD
felony/NN
counts/NNS
and/CC
pay/VB
$/$
650/CD
million/CD
,/,
of/IN
which/WDT
$/$
350/CD
million/CD
was/VBD
set/VBN
aside/RB
for/IN
shareholders/NNS
and/CC
other/JJ
plaintiffs/NNS
,/,
including/VBG
the/DT
limited/JJ
partners/NNS
,/,
who/WP
claim/VBP
they/PRP
were/VBD
injured/VBN
by/IN
Drexel/NNP
./.
JAILED/VBN
AFRICAN-AMERICAN/JJ
activist/NN
wins/VBZ
a/DT
battle/NN
against/IN
the/DT
U.S./NNP
District/NNP
Judge/NNP
Robert/NNP
P./NNP
Patterson/NNP
Jr./NNP
ordered/VBD
the/DT
FBI/NNP
to/TO
immediately/RB
begin/VB
processing/VBG
Herman/NNP
Benjamin/NNP
Ferguson/NNP
's/POS
request/NN
for/IN
documents/NNS
stemming/VBG
from/IN
the/DT
agency/NN
's/POS
investigation/NN
of/IN
him/PRP
during/IN
the/DT
1960s/NNS
./.
The/DT
FBI/NNP
had/VBD
said/VBN
it/PRP
would/MD
not/RB
be/VB
able/JJ
to/TO
begin/VB
processing/VBG
the/DT
request/NN
until/IN
June/NNP
Mr./NNP
Ferguson/NNP
,/,
who/WP
is/VBZ
68/CD
years/NNS
old/JJ
,/,
fled/VBD
the/DT
U.S./NNP
in/IN
1970/CD
after/IN
exhausting/VBG
his/PRP$
appeals/NNS
of/IN
a/DT
1968/CD
conviction/NN
on/IN
conspiracy/NN
to/TO
murder/NN
./.
He/PRP
turned/VBD
himself/PRP
in/IN
to/TO
authorities/NNS
in/IN
New/NNP
York/NNP
earlier/RBR
this/DT
year/NN
./.
He/PRP
maintains/VBZ
that/IN
the/DT
information/NN
from/IN
the/DT
FBI/NNP
will/MD
help/VB
him/PRP
get/VB
his/PRP$
1968/CD
conviction/NN
vacated/VBN
and/CC
his/PRP$
bail-jumping/NN
indictment/NN
dismissed/VBN
./.
His/PRP$
attorneys/NNS
claim/VBP
he/PRP
was/VBD
framed/VBN
by/IN
the/DT
FBI/NNP
and/CC
New/NNP
York/NNP
police/NNS
as/IN
part/NN
of/IN
a/DT
campaign/NN
to/TO
destroy/VB
the/DT
black/JJ
liberation/NN
movement/NN
of/IN
the/DT
1960s/NNS
./.
Because/IN
the/DT
federal/JJ
Freedom/NNP
of/IN
Information/NNP
Act/NNP
was/VBD
n't/RB
law/NN
at/IN
that/DT
time/NN
,/,
the/DT
FBI/NNP
was/VBD
n't/RB
required/VBN
to/TO
turn/VB
over/RP
information/NN
on/IN
its/PRP$
investigations/NNS
when/WRB
Mr./NNP
Ferguson/NNP
appealed/VBD
his/PRP$
conviction/NN
in/IN
the/DT
1960s/NNS
./.
But/CC
in/IN
federal/JJ
court/NN
in/IN
Manhattan/NNP
,/,
Judge/NNP
Patterson/NNP
said/VBD
the/DT
FBI/NNP
records/NNS
could/MD
show/VB
that/IN
Mr./NNP
Ferguson/NNP
's/POS
arrest/NN
was/VBD
the/DT
result/NN
of/IN
questionable/JJ
legal/JJ
practices/NNS
./.
The/DT
judge/NN
said/VBD
that/IN
if/IN
the/DT
FBI/NNP
's/POS
proposed/VBN
schedule/NN
was/VBD
followed/VBN
in/IN
releasing/VBG
the/DT
documents/NNS
,/,
``/``
a/DT
delay/NN
of/IN
over/IN
one/CD
year/NN
will/MD
have/VB
occurred/VBN
and/CC
plaintiff/NN
will/MD
have/VB
served/VBD
approximately/RB
two-thirds/NNS
of/IN
his/PRP$
3/CD
1\/2-year/JJ
minimum/JJ
sentence/NN
by/IN
the/DT
time/NN
he/PRP
receives/VBZ
the/DT
files/NNS
./.
''/''
Gabriel/NNP
W./NNP
Gorenstein/NNP
,/,
the/DT
assistant/NN
U.S./NNP
attorney/NN
handling/VBG
the/DT
case/NN
for/IN
the/DT
FBI/NNP
,/,
said/VBD
no/DT
decision/NN
has/VBZ
been/VBN
made/VBN
about/IN
appealing/VBG
the/DT
judge/NN
's/POS
ruling/NN
./.
FEDERAL/JJ
COURTS/NNS
URGED/VBN
to/TO
cut/VB
costs/NNS
and/CC
reduce/VB
delays/NNS
of/IN
civil/JJ
suits/NNS
./.
The/DT
study/NN
,/,
conducted/VBN
by/IN
a/DT
task/NN
force/NN
of/IN
the/DT
Brookings/NNP
Institution/NNP
,/,
suggests/VBZ
that/IN
Congress/NNP
should/MD
require/VB
the/DT
courts/NNS
to/TO
develop/VB
the/DT
plans/NNS
./.
The/DT
study/NN
was/VBD
initiated/VBN
by/IN
Senate/NNP
Judiciary/NNP
Committee/NNP
chairman/NN
Joseph/NNP
Biden/NNP
D./NNP
,/,
Del/NNP
./.
The/DT
Washington/NNP
,/,
D.C./NNP
,/,
think/NN
tank/NN
recommends/VBZ
that/IN
the/DT
courts/NNS
adopt/VB
different/JJ
``/``
tracks/NNS
''/''
for/IN
different/JJ
types/NNS
of/IN
civil/JJ
cases/NNS
in/IN
order/NN
to/TO
separate/VB
the/DT
handling/NN
of/IN
highly/RB
complex/JJ
suits/NNS
from/IN
simpler/JJR
ones/NNS
./.
Complex/JJ
cases/NNS
,/,
such/JJ
as/IN
antitrust/JJ
suits/NNS
and/CC
many/JJ
business/NN
disputes/NNS
,/,
would/MD
receive/VB
intense/JJ
supervision/NN
by/IN
federal/JJ
judges/NNS
to/TO
keep/VB
pretrial/JJ
proceedings/NNS
moving/VBG
./.
Standard/JJ
cases/NNS
would/MD
require/VB
less/JJR
judicial/JJ
attention/NN
,/,
and/CC
fast-track/JJ
cases/NNS
could/MD
be/VB
resolved/VBN
quickly/RB
./.
The/DT
study/NN
also/RB
said/VBD
each/DT
federal/JJ
court/NN
should/MD
set/VB
strict/JJ
time/NN
limits/NNS
for/IN
the/DT
pretrial/JJ
exchange/NN
of/IN
documents/NNS
and/CC
evidence/NN
,/,
ranging/VBG
from/IN
as/RB
much/JJ
as/IN
100/CD
days/NNS
for/IN
cases/NNS
in/IN
the/DT
fast/JJ
track/NN
to/TO
as/RB
much/JJ
as/IN
18/CD
months/NNS
for/IN
complex/JJ
disputes/NNS
./.
And/CC
the/DT
study/NN
said/VBD
federal/JJ
courts/NNS
should/MD
set/VB
firm/JJ
trial/NN
dates/NNS
early/RB
in/IN
the/DT
process/NN
./.
To/TO
take/VB
advantage/NN
of/IN
local/JJ
expertise/NN
and/CC
custom/NN
,/,
the/DT
study/NN
said/VBD
,/,
Congress/NNP
should/MD
require/VB
each/DT
of/IN
the/DT
94/CD
federal/JJ
district/NN
courts/NNS
to/TO
adopt/VB
its/PRP$
own/JJ
plan/NN
to/TO
speed/VB
the/DT
handling/NN
of/IN
civil/JJ
suits/NNS
and/CC
to/TO
reduce/VB
the/DT
high/JJ
costs/NNS
in/IN
civil/JJ
cases/NNS
./.
Although/IN
some/DT
of/IN
the/DT
study/NN
's/POS
recommendations/NNS
resemble/VBP
those/DT
of/IN
similar/JJ
projects/NNS
,/,
the/DT
makeup/NN
of/IN
the/DT
task/NN
force/NN
was/VBD
unusually/RB
diverse/JJ
,/,
adding/VBG
significance/NN
to/TO
the/DT
effort/NN
./.
It/PRP
included/VBD
lawyers/NNS
from/IN
civil/JJ
rights/NNS
and/CC
consumer/NN
groups/NNS
,/,
plaintiffs/NNS
'/POS
lawyers/NNS
and/CC
defense/NN
attorneys/NNS
,/,
corporate/JJ
counsel/NN
and/CC
law/NN
professors/NNS
./.
Businessland/NNP
Inc./NNP
said/VBD
it/PRP
purchased/VBD
a/DT
major/JJ
regional/JJ
computer/NN
retailer/NN
,/,
Data/NNPS
Systems/NNPS
Computer/NNP
Centre/NNP
Inc./NNP
,/,
Springfield/NNP
,/,
New/NNP
Jersey/NNP
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
The/DT
purchase/NN
strengthens/VBZ
San/NNP
Jose/NNP
,/,
Calif.-based/JJ
Businessland/NNP
's/POS
links/NNS
to/TO
the/DT
large/JJ
corporations/NNS
who/WP
are/VBP
among/IN
the/DT
biggest/JJS
buyers/NNS
of/IN
computers/NNS
./.
Data/NNPS
Systems/NNPS
has/VBZ
five/CD
retail/JJ
stores/NNS
in/IN
the/DT
northeast/NN
,/,
but/CC
specializes/VBZ
in/IN
selling/VBG
personal/JJ
computers/NNS
made/VBN
by/IN
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
and/CC
Apple/NNP
Computer/NNP
Inc./NNP
to/TO
banks/NNS
,/,
brokerage/NN
firms/NNS
and/CC
other/JJ
big/JJ
businesses/NNS
based/VBN
in/IN
the/DT
New/NNP
York/NNP
metropolitan/JJ
area/NN
./.
John/NNP
Fitzsimmons/NNP
,/,
chief/JJ
executive/NN
officer/NN
of/IN
Data/NNPS
Systems/NNPS
,/,
said/VBD
the/DT
company/NN
was/VBD
profitable/JJ
and/CC
expected/VBD
sales/NNS
of/IN
nearly/RB
$/$
100/CD
million/CD
this/DT
year/NN
./.
He/PRP
said/VBD
Businessland/NNP
,/,
which/WDT
operates/VBZ
stores/NNS
in/IN
50/CD
U.S./NNP
metropolitan/JJ
areas/NNS
,/,
planned/VBD
to/TO
absorb/VB
his/PRP$
firm/NN
's/POS
operations/NNS
./.
Eastman/NNP
Kodak/NNP
Co./NNP
of/IN
Rochester/NNP
,/,
N.Y./NNP
,/,
said/VBD
its/PRP$
Lehn/NNP
&/CC
Fink/NNP
Products/NNPS
subsidiary/NN
was/VBD
restructured/VBN
to/TO
form/VB
two/CD
operating/VBG
groups/NNS
,/,
one/CD
for/IN
household/NN
products/NNS
such/JJ
as/IN
cleaners/NNS
and/CC
disinfectants/NNS
and/CC
the/DT
other/JJ
for/IN
do-it-yourself/JJ
products/NNS
such/JJ
as/IN
wood/NN
finishes/NNS
and/CC
stains/NNS
./.
The/DT
Montvale/NNP
,/,
N.J./NNP
,/,
unit/NN
said/VBD
the/DT
new/JJ
operating/NN
structure/NN
``/``
creates/VBZ
a/DT
more/RBR
focused/JJ
and/CC
responsive/JJ
organization/NN
geared/VBN
to/TO
effectively/RB
managing/VBG
the/DT
size/NN
and/CC
scope/NN
of/IN
the/DT
unit/NN
's/POS
current/JJ
business/NN
./.
''/''
The/DT
consumer/NN
brands/NNS
unit/NN
was/VBD
absorbed/VBN
by/IN
the/DT
photographic/JJ
,/,
pharmaceutical/JJ
and/CC
chemical/NN
concern/NN
last/JJ
year/NN
when/WRB
it/PRP
acquired/VBD
Sterling/NNP
Drug/NNP
Inc/NNP
./.
In/IN
a/DT
related/JJ
matter/NN
,/,
Peter/NNP
Black/NNP
,/,
president/NN
of/IN
consumer/NN
brand/NN
Minwax/NNP
,/,
was/VBD
named/VBN
group/NN
vice/NN
president/NN
for/IN
the/DT
household/NN
products/NNS
operating/VBG
group/NN
./.
Kenneth/NNP
M./NNP
Evans/NNP
,/,
president/NN
of/IN
Thompson/NNP
&/CC
Formby/NNP
brand/NN
,/,
was/VBD
named/VBN
group/NN
vice/NN
president/NN
of/IN
the/DT
do-it-yourself/JJ
operating/VBG
group/NN
./.
Sotheby/NNP
's/POS
Holdings/NNPS
Inc./NNP
,/,
the/DT
parent/NN
of/IN
the/DT
auction/NN
house/NN
Sotheby/NNP
's/POS
,/,
said/VBD
its/PRP$
net/JJ
loss/NN
for/IN
the/DT
seasonally/RB
slow/JJ
third/JJ
quarter/NN
narrowed/VBN
from/IN
a/DT
year/NN
earlier/RB
on/IN
a/DT
leap/NN
in/IN
operating/NN
revenue/NN
./.
The/DT
New/NNP
York-based/JJ
company/NN
reported/VBD
a/DT
third-quarter/JJ
net/JJ
loss/NN
of/IN
$/$
5.1/CD
million/CD
,/,
or/CC
10/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
a/DT
year-earlier/JJ
net/JJ
loss/NN
of/IN
$/$
6.2/CD
million/CD
,/,
or/CC
12/CD
cents/NNS
a/DT
share/NN
./.
Operating/NN
revenue/NN
surged/VBD
54/CD
%/NN
in/IN
the/DT
latest/JJS
period/NN
to/TO
$/$
42.9/CD
million/CD
from/IN
$/$
27.7/CD
million/CD
./.
The/DT
company/NN
said/VBD
80/CD
%/NN
of/IN
its/PRP$
auction/NN
business/NN
is/VBZ
usually/RB
conducted/VBN
in/IN
the/DT
second/JJ
and/CC
fourth/JJ
quarters/NNS
,/,
with/IN
the/DT
current/JJ
quarter/NN
having/VBG
begun/VBN
``/``
extremely/RB
well/RB
./.
''/''
West/NNP
Texas/NNP
Intermediate/NNP
,/,
the/DT
U.S./NNP
benchmark/NN
crude/NN
,/,
seemed/VBD
tethered/JJ
again/RB
yesterday/NN
in/IN
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Mercantile/NNP
Exchange/NNP
./.
Widely/RB
expected/VBN
to/TO
open/VB
10/CD
to/TO
15/CD
cents/NNS
a/DT
barrel/NN
higher/RBR
on/IN
the/DT
strength/NN
of/IN
statistics/NNS
from/IN
the/DT
American/NNP
Petroleum/NNP
Institute/NNP
,/,
the/DT
December/NNP
contract/NN
managed/VBD
to/TO
start/VB
the/DT
session/NN
only/RB
eight/CD
cents/NNS
higher/RBR
./.
In/IN
the/DT
last/JJ
hour/NN
of/IN
the/DT
trading/NN
day/NN
,/,
December/NNP
contract/NN
took/VBD
a/DT
tumble/NN
to/TO
end/VB
the/DT
session/NN
10/CD
cents/NNS
lower/JJR
at/IN
$/$
19.62/CD
a/DT
barrel/NN
./.
And/CC
now/RB
that/IN
the/DT
price/NN
has/VBZ
fallen/VBN
below/IN
$/$
19.65/CD
,/,
which/WDT
many/JJ
had/VBD
said/VBN
showed/VBN
considerable/JJ
resistance/NN
,/,
some/DT
traders/NNS
and/CC
analysts/NNS
figure/VBP
there/EX
's/VBZ
little/JJ
to/TO
stop/VB
the/DT
price/NN
from/IN
going/VBG
lower/RBR
on/IN
technical/JJ
decisions/NNS
./.
With/IN
no/DT
petroleum-related/JJ
news/NN
or/CC
changes/NNS
in/IN
the/DT
fundamentals/NNS
to/TO
dictate/VB
price/NN
moves/NNS
,/,
``/``
technicians/NNS
are/VBP
wanting/VBG
to/TO
sell/VB
this/DT
stuff/NN
,/,
''/''
said/VBD
Eric/NNP
Bolling/NNP
of/IN
Edge/NNP
Trading/NNP
Corp/NNP
./.
``/``
And/CC
short-term/JJ
,/,
the/DT
technicians/NNS
may/MD
have/VB
their/PRP$
way/NN
./.
''/''
The/DT
market/NN
quickly/RB
discounted/VBD
the/DT
weekly/JJ
inventory/NN
report/NN
showing/VBG
a/DT
6.3/CD
million/CD
barrel/NN
decrease/NN
in/IN
U.S./NNP
crude/JJ
oil/NN
stocks/NNS
as/IN
the/DT
legacy/NN
of/IN
Hurricane/NNP
Jerry/NNP
./.
That/DT
storm/NN
hit/VBD
the/DT
Gulf/NNP
Coast/NNP
Oct./NNP
13/CD
,/,
closing/VBG
the/DT
Louisiana/NNP
Offshore/NNP
Oil/NNP
Port/NNP
for/IN
a/DT
time/NN
and/CC
preventing/VBG
tankers/NNS
from/IN
unloading/VBG
./.
Next/JJ
week/NN
's/POS
report/NN
could/MD
very/RB
well/RB
show/VB
an/DT
increase/NN
in/IN
crude/JJ
inventories/NNS
./.
Dismissing/VBG
the/DT
trade/NN
group/NN
's/POS
numbers/NNS
left/VBN
traders/NNS
plenty/NN
of/IN
time/NN
to/TO
worry/VB
anew/RB
about/IN
the/DT
latest/JJS
reports/NNS
on/IN
OPEC/NNP
production/NN
./.
An/DT
AP-Dow/NNP
Jones/NNP
survey/NN
of/IN
integrated/JJ
oil/NN
companies/NNS
,/,
independent/JJ
refiners/NNS
,/,
and/CC
oil/NN
industry/NN
consultants/NNS
indicates/VBZ
that/IN
the/DT
Organization/NNP
of/IN
Petroleum/NNP
Exporting/NNP
Countries/NNPS
increased/VBD
its/PRP$
production/NN
to/TO
22.2/CD
million/CD
barrels/NNS
a/DT
day/NN
in/IN
September/NNP
./.
Estimates/NNS
suggest/VBP
October/NNP
's/POS
figure/NN
may/MD
be/VB
even/RB
higher/JJR
./.
That/DT
level/NN
of/IN
production/NN
is/VBZ
n't/RB
of/IN
much/JJ
concern/NN
as/RB
long/RB
as/IN
demand/NN
continues/VBZ
strong/RB
,/,
analysts/NNS
said/VBD
./.
But/CC
the/DT
first/JJ
quarter/NN
of/IN
the/DT
year/NN
is/VBZ
generally/RB
the/DT
weakest/JJS
and/CC
OPEC/NNP
production/NN
does/VBZ
n't/RB
seem/VB
to/TO
be/VB
slackening/VBG
in/IN
anticipation/NN
of/IN
that/DT
./.
Also/RB
,/,
maintaining/VBG
current/JJ
demand/NN
assumes/VBZ
no/DT
significant/JJ
slowdown/NN
in/IN
world/NN
economies/NNS
./.
To/TO
top/VB
off/RP
the/DT
bearish/JJ
factors/NNS
affecting/VBG
yesterday/NN
's/VBZ
trading/NN
,/,
late/JJ
October/NNP
weather/NN
,/,
especially/RB
in/IN
the/DT
Northeast/NNP
U.S./NNP
,/,
continues/VBZ
to/TO
be/VB
very/RB
moderate/JJ
,/,
leaving/VBG
heating/NN
oil/NN
futures/NNS
trading/NN
lackluster/RB
./.
``/``
We/PRP
are/VBP
n't/RB
seeing/VBG
any/DT
cold/JJ
weather/NN
here/RB
,/,
''/''
Mr./NNP
Bolling/NNP
said/VBD
from/IN
New/NNP
York/NNP
./.
In/IN
other/JJ
commodity/NN
markets/NNS
yesterday/NN
:/:
GRAINS/NNS
AND/CC
SOYBEANS/NNS
:/:
Soybean/NN
and/CC
corn/NN
futures/NNS
prices/NNS
moved/VBD
higher/RBR
on/IN
the/DT
strength/NN
of/IN
buying/NN
from/IN
commodity/NN
pool/NN
managers/NNS
trying/VBG
to/TO
profit/VB
from/IN
technical/JJ
price/NN
trends/NNS
,/,
as/RB
well/RB
as/IN
continued/VBN
export/NN
strength/NN
./.
A/DT
leveling/NN
off/RB
of/IN
farmer/NN
selling/NN
tied/VBN
to/TO
the/DT
harvest/NN
also/RB
removed/VBD
some/DT
of/IN
the/DT
downward/JJ
pressure/NN
on/IN
futures/NNS
contract/NN
prices/NNS
./.
Wheat/NN
futures/NNS
prices/NNS
fell/VBD
,/,
however/RB
,/,
at/IN
least/JJS
partly/RB
in/IN
reaction/NN
to/TO
the/DT
rumored/VBN
selling/NN
of/IN
futures/NNS
contracts/NNS
equal/JJ
to/TO
several/JJ
million/CD
bushels/NNS
of/IN
wheat/NN
by/IN
commodity/NN
speculator/NN
Richard/NNP
Dennis/NNP
./.
Neither/CC
Mr./NNP
Dennis/NNP
nor/CC
officials/NNS
of/IN
his/PRP$
Chicago/NNP
trading/NN
company/NN
,/,
C&D/NNP
Commodities/NNP
,/,
could/MD
be/VB
reached/VBN
for/IN
comment/NN
./.
As/IN
for/IN
corn/NN
and/CC
soybean/NN
futures/NNS
,/,
``/``
a/DT
lot/NN
of/IN
commission/NN
house/NN
buying/NN
this/DT
morning/NN
and/CC
computer-driven/JJ
buying/NN
''/''
supported/VBD
prices/NNS
in/IN
early/JJ
trading/NN
,/,
said/VBD
Steven/NNP
Freed/NNP
,/,
a/DT
futures/NNS
analyst/NN
with/IN
Dean/NNP
Witter/NNP
Reynolds/NNP
Inc./NNP
in/IN
Chicago/NNP
./.
Soybean/NN
futures/NNS
for/IN
November/NNP
delivery/NN
gained/VBD
5.25/CD
cents/NNS
a/DT
bushel/NN
to/TO
close/VB
at/IN
$/$
5.66/CD
a/DT
bushel/NN
on/IN
the/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
./.
December/NNP
corn/NN
futures/NNS
added/VBD
2.25/CD
cents/NNS
a/DT
bushel/NN
to/TO
close/VB
at/IN
$/$
2.4225/CD
a/DT
bushel/NN
on/IN
the/DT
Board/NNP
of/IN
Trade/NNP
./.
Announced/JJ
and/CC
anticipated/JJ
purchases/NNS
from/IN
foreign/JJ
countries/NNS
are/VBP
also/RB
supporting/VBG
futures/NNS
prices/NNS
./.
``/``
Russian/JJ
ships/NNS
are/VBP
arriving/VBG
in/IN
the/DT
gulf/NN
and/CC
there/EX
is/VBZ
n't/RB
enough/RB
grain/NN
in/IN
the/DT
pipeline/NN
,/,
''/''
said/VBD
Katharina/NNP
Zimmer/NNP
,/,
a/DT
futures/NNS
analyst/NN
with/IN
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
in/IN
New/NNP
York/NNP
./.
The/DT
Soviet/NNP
Union/NNP
has/VBZ
purchased/VBN
roughly/RB
eight/CD
million/CD
tons/NNS
of/IN
grain/NN
this/DT
month/NN
,/,
and/CC
is/VBZ
expected/VBN
to/TO
take/VB
delivery/NN
by/IN
year/NN
end/NN
,/,
analysts/NNS
said/VBD
./.
COTTON/NN
:/:
Futures/NNS
prices/NNS
rose/VBD
modestly/RB
,/,
but/CC
trading/NN
volume/NN
was/VBD
n't/RB
very/RB
heavy/JJ
./.
The/DT
December/NNP
contract/NN
settled/VBD
at/IN
73.97/CD
cents/NNS
a/DT
pound/NN
,/,
up/RB
0.59/CD
cent/NN
,/,
but/CC
it/PRP
rose/VBD
as/RB
high/JJ
as/IN
74.20/CD
cents/NNS
./.
Several/JJ
cotton/NN
analysts/NNS
said/VBD
that/IN
the/DT
move/NN
appeared/VBD
to/TO
be/VB
mostly/RB
technical/JJ
./.
Traders/NNS
who/WP
had/VBD
sold/VBN
contracts/NNS
earlier/RBR
,/,
in/IN
hopes/NNS
of/IN
buying/VBG
them/PRP
back/RB
at/IN
lower/JJR
prices/NNS
,/,
yesterday/NN
were/VBD
buying/VBG
contracts/NNS
back/RB
at/IN
higher/JJR
prices/NNS
to/TO
limit/VB
their/PRP$
losses/NNS
./.
Floor/NN
traders/NNS
also/RB
said/VBD
that/IN
the/DT
market/NN
could/MD
have/VB
been/VBN
helped/VBN
by/IN
rumors/NNS
,/,
which/WDT
have/VBP
been/VBN
circulating/VBG
for/IN
the/DT
past/JJ
two/CD
days/NNS
,/,
about/IN
China/NNP
purchasing/VBG
cotton/NN
./.
The/DT
rumor/NN
,/,
which/WDT
has/VBZ
been/VBN
neither/RB
confirmed/VBN
nor/CC
denied/VBN
,/,
has/VBZ
China/NNP
buying/VBG
125,000/CD
to/TO
200,000/CD
bales/NNS
for/IN
near-term/JJ
delivery/NN
./.
One/CD
floor/NN
trader/NN
said/VBD
that/IN
if/IN
there/EX
were/VBD
Chinese/JJ
purchases/NNS
,/,
they/PRP
should/MD
have/VB
had/VBD
a/DT
bigger/JJR
effect/NN
on/IN
the/DT
market/NN
./.
Another/DT
said/VBD
that/IN
if/IN
China/NNP
was/VBD
a/DT
buyer/NN
,/,
it/PRP
would/MD
be/VB
the/DT
earliest/JJS
that/IN
country/NN
had/VBD
made/VBN
purchases/NNS
since/IN
the/DT
1979-80/CD
crop/NN
year/NN
,/,
and/CC
thus/RB
would/MD
be/VB
a/DT
bullish/JJ
sign/NN
./.
This/DT
trader/NN
characterized/VBD
the/DT
recent/JJ
price/NN
action/NN
as/IN
a/DT
contest/NN
between/IN
the/DT
fundamentalists/NNS
,/,
who/WP
see/VBP
higher/JJR
prices/NNS
ahead/RB
,/,
and/CC
the/DT
technicians/NNS
,/,
who/WP
are/VBP
basically/RB
buying/VBG
cotton/NN
toward/IN
the/DT
bottom/NN
of/IN
the/DT
current/JJ
trading/NN
range/NN
,/,
around/IN
71/CD
cents/NNS
,/,
and/CC
selling/VBG
it/PRP
when/WRB
the/DT
price/NN
climbs/VBZ
more/JJR
than/IN
74/CD
cents/NNS
./.
This/DT
trader/NN
said/VBD
that/IN
he/PRP
thought/VBD
the/DT
market/NN
would/MD
turn/VB
aggressively/RB
bullish/JJ
from/IN
a/DT
technical/JJ
standpoint/NN
if/IN
the/DT
December/NNP
contract/NN
was/VBD
able/JJ
to/TO
exceed/VB
75.75/CD
cents/NNS
./.
He/PRP
also/RB
noted/VBD
that/IN
stocks/NNS
on/IN
Aug./NNP
1/CD
,/,
1990/CD
,/,
are/VBP
currently/RB
projected/VBN
at/IN
3.3/CD
million/CD
bales/NNS
,/,
the/DT
smallest/JJS
end-of-season/JJ
supply/NN
since/IN
1985/CD
./.
COCOA/NN
:/:
The/DT
modest/JJ
sell-off/NN
,/,
which/WDT
started/VBN
on/IN
Tuesday/NNP
,/,
continued/VBD
./.
The/DT
December/NNP
contract/NN
ended/VBN
at/IN
$/$
999/CD
a/DT
metric/JJ
ton/NN
,/,
down/RB
$/$
15/CD
./.
The/DT
market/NN
is/VBZ
drifting/VBG
,/,
at/IN
least/JJS
partly/RB
,/,
because/IN
of/IN
a/DT
lack/NN
of/IN
crop/NN
information/NN
out/IN
of/IN
Ghana/NNP
and/CC
the/DT
Ivory/NNP
Coast/NNP
,/,
the/DT
two/CD
largest/JJS
African/JJ
producers/NNS
./.
Harry/NNP
Schwartz/NNP
,/,
a/DT
soft/JJ
commodity/NN
specialist/NN
for/IN
Cargill/NNP
Investors/NNPS
Services/NNPS
in/IN
New/NNP
York/NNP
,/,
said/VBD
the/DT
only/JJ
report/NN
Ghana/NNP
has/VBZ
issued/VBN
about/IN
the/DT
arrival/NN
of/IN
cocoa/NN
from/IN
the/DT
interior/NN
was/VBD
for/IN
7,839/CD
metric/JJ
tons/NNS
as/IN
of/IN
Oct./NNP
12/CD
./.
By/IN
this/DT
time/NN
last/JJ
year/NN
,/,
he/PRP
noted/VBD
,/,
arrivals/NNS
totaling/VBG
33,270/CD
tons/NNS
had/VBD
been/VBN
announced/VBN
./.
A/DT
similar/JJ
situation/NN
apparently/RB
exists/VBZ
in/IN
the/DT
Ivory/NNP
Coast/NNP
with/IN
no/DT
figures/NNS
released/VBN
yet/RB
this/DT
year/NN
,/,
compared/VBN
with/IN
55,000/CD
tons/NNS
as/IN
of/IN
this/DT
time/NN
a/DT
year/NN
ago/RB
./.
He/PRP
said/VBD
that/IN
if/IN
little/JJ
cocoa/NN
actually/RB
has/VBZ
arrived/VBN
at/IN
the/DT
ports/NNS
,/,
shipping/NN
delays/NNS
could/MD
result/VB
./.
This/DT
is/VBZ
the/DT
worry/NN
that/WDT
probably/RB
brought/VBD
steadiness/NN
to/TO
the/DT
market/NN
earlier/RB
in/IN
the/DT
week/NN
,/,
he/PRP
said/VBD
./.
There/EX
was/VBD
also/RB
some/DT
fear/NN
that/IN
without/IN
Ivory/NNP
Coast/NNP
cocoa/NN
a/DT
large/JJ
French/JJ
cocoa/NN
merchant/NN
,/,
Cie/NNP
./.
Financiere/NNP
Sucre/NNP
et/FW
Denrees/NNP
,/,
might/MD
not/RB
be/VB
able/JJ
to/TO
deliver/VB
cocoa/NN
against/IN
the/DT
contracts/NNS
it/PRP
had/VBD
sold/VBN
earlier/RB
for/IN
December/NNP
delivery/NN
in/IN
London/NNP
./.
However/RB
,/,
the/DT
French/JJ
merchant/NN
has/VBZ
about/IN
200,000/CD
tons/NNS
of/IN
old/JJ
crop/NN
Ivory/NNP
Coast/NNP
cocoa/NN
stored/VBN
in/IN
the/DT
Netherlands/NNP
from/IN
an/DT
agreement/NN
it/PRP
had/VBD
negotiated/VBN
with/IN
the/DT
Ivory/NNP
Coast/NNP
last/JJ
spring/NN
./.
Cargill/NNP
thinks/VBZ
that/IN
even/RB
though/IN
the/DT
merchant/NN
has/VBZ
a/DT
contract/NN
stating/VBG
that/IN
it/PRP
wo/MD
n't/RB
bring/VB
this/DT
cocoa/NN
to/TO
market/NN
until/IN
after/IN
March/NNP
1991/CD
,/,
there/EX
is/VBZ
some/DT
evidence/NN
the/DT
contract/NN
has/VBZ
been/VBN
modified/VBN
./.
This/DT
modification/NN
,/,
apparently/RB
,/,
would/MD
permit/VB
the/DT
French/JJ
merchant/NN
to/TO
deliver/VB
this/DT
cocoa/NN
,/,
if/IN
necessary/JJ
,/,
against/IN
existing/VBG
short/JJ
positions/NNS
./.
Richard/NNP
D./NNP
Sutton/NNP
,/,
64/CD
years/NNS
old/JJ
,/,
chairman/NN
of/IN
this/DT
bank-holding/JJ
company/NN
,/,
was/VBD
named/VBN
acting/JJ
president/NN
and/CC
chief/JJ
executive/NN
officer/NN
of/IN
the/DT
company/NN
and/CC
its/PRP$
First/NNP
National/NNP
Bank/NNP
of/IN
Toms/NNP
River/NNP
subsidiary/NN
./.
Joseph/NNP
W./NNP
Robertson/NNP
,/,
61/CD
,/,
was/VBD
dismissed/VBN
from/IN
those/DT
posts/NNS
,/,
the/DT
company/NN
said/VBD
./.
He/PRP
could/MD
n't/RB
be/VB
reached/VBN
and/CC
a/DT
company/NN
spokesman/NN
would/MD
n't/RB
comment/VB
on/IN
the/DT
dismissal/NN
./.
Mr./NNP
Robertson/NNP
was/VBD
also/RB
removed/VBN
from/IN
the/DT
board/NN
of/IN
First/NNP
National/NNP
Bank/NNP
of/IN
New/NNP
Jersey-Salem/NNP
County/NNP
,/,
another/DT
unit/NN
,/,
and/CC
the/DT
Toms/NNP
River/NNP
bank/NN
./.
American/NNP
Medical/NNP
International/NNP
Inc./NNP
said/VBD
it/PRP
has/VBZ
n't/RB
received/VBN
any/DT
other/JJ
offers/NNS
to/TO
acquire/VB
the/DT
owner/NN
and/CC
operator/NN
of/IN
hospitals/NNS
,/,
and/CC
took/VBD
another/DT
step/NN
toward/IN
completion/NN
of/IN
its/PRP$
$/$
3/CD
billion/CD
acquisition/NN
by/IN
IMA/NNP
Holdings/NNPS
Corp/NNP
./.
Earlier/RBR
this/DT
month/NN
IMA/NNP
,/,
an/DT
investment/NN
group/NN
that/WDT
includes/VBZ
Chicago/NNP
's/POS
Pritzker/NNP
family/NN
and/CC
First/NNP
Boston/NNP
Corp./NNP
,/,
submitted/VBD
a/DT
reduced/VBN
bid/NN
for/IN
American/NNP
Medical/NNP
after/IN
it/PRP
could/MD
n't/RB
finance/VB
its/PRP$
initial/JJ
offer/NN
./.
Under/IN
the/DT
new/JJ
offer/NN
,/,
IMA/NNP
will/MD
pay/VB
$/$
26.50/CD
a/DT
share/NN
for/IN
63/CD
million/CD
shares/NNS
,/,
or/CC
about/IN
86/CD
%/NN
of/IN
the/DT
shares/NNS
outstanding/JJ
./.
IMA/NNP
also/RB
will/MD
assume/VB
$/$
1.4/CD
billion/CD
in/IN
debt/NN
./.
Yesterday/NN
,/,
in/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
AMI/NNP
common/NN
closed/VBD
at/IN
$/$
23.625/CD
,/,
up/RB
12.5/CD
cents/NNS
,/,
on/IN
volume/NN
of/IN
almost/RB
1.8/CD
million/CD
./.
Earlier/RB
,/,
American/NNP
Medical/NNP
said/VBD
it/PRP
had/VBD
been/VBN
approached/VBN
again/RB
by/IN
two/CD
other/JJ
possible/JJ
suitors/NNS
,/,
whom/WP
it/PRP
would/MD
n't/RB
identify/VB
but/CC
who/WP
had/VBD
previously/RB
submitted/VBN
bids/NNS
for/IN
the/DT
company/NN
./.
Yesterday/NN
,/,
American/NNP
Medical/NNP
said/VBD
that/IN
the/DT
two/CD
other/JJ
parties/NNS
told/VBD
the/DT
company/NN
that/IN
they/PRP
do/VBP
n't/RB
have/VB
any/DT
current/JJ
intention/NN
of/IN
making/VBG
a/DT
takeover/NN
bid/NN
./.
American/NNP
Medical/NNP
said/VBD
its/PRP$
directors/NNS
have/VBP
approved/VBN
what/WP
is/VBZ
,/,
in/IN
effect/NN
,/,
a/DT
draft/NN
of/IN
a/DT
solvency/NN
opinion/NN
on/IN
the/DT
acquisition/NN
,/,
submitted/VBN
by/IN
the/DT
Los/NNP
Angeles-based/JJ
investment/NN
banking/NN
and/CC
evaluation/NN
consulting/NN
firm/NN
of/IN
Houlian/NNP
Lokey/NNP
Howard/NNP
&/CC
Zukin/NNP
Inc/NNP
./.
A/DT
final/JJ
opinion/NN
must/MD
be/VB
approved/VBN
prior/RB
to/TO
the/DT
acceptance/NN
of/IN
tendered/JJ
shares/NNS
for/IN
payment/NN
under/IN
the/DT
offer/NN
,/,
which/WDT
was/VBD
due/JJ
to/TO
expire/VB
at/IN
12:01/CD
a.m./RB
EDT/NNP
today/NN
./.
Separately/RB
,/,
Moody/NNP
's/POS
Investors/NNPS
Service/NNP
Inc./NNP
downgraded/VBD
the/DT
ratings/NNS
of/IN
American/NNP
Medical/NNP
's/POS
senior/JJ
and/CC
subordinated/JJ
debt/NN
issues/NNS
and/CC
those/DT
of/IN
its/PRP$
international/JJ
affiliate/NN
./.
The/DT
downgrade/NN
anticipates/VBZ
completion/NN
of/IN
the/DT
IMA/NNP
Holdings/NNPS
acquisition/NN
today/NN
,/,
Moody/NNP
's/POS
said/VBD
./.
The/DT
ratings/NNS
concern/NN
said/VBD
the/DT
acquisition/NN
should/MD
result/VB
in/IN
pretax/JJ
losses/NNS
from/IN
operations/NNS
because/IN
of/IN
increases/NNS
in/IN
interest/NN
expense/NN
and/CC
charges/NNS
for/IN
depreciation/NN
and/CC
amortization/NN
,/,
but/CC
that/IN
it/PRP
expects/VBZ
the/DT
losses/NNS
to/TO
be/VB
reduced/VBN
through/IN
productivity/NN
gains/NNS
and/CC
above/JJ
average/JJ
growth/NN
of/IN
the/DT
company/NN
's/POS
hospitals/NNS
./.
Moody/NNP
's/POS
said/VBD
the/DT
ratings/NNS
anticipate/VBP
a/DT
successful/JJ
debt-reduction/NN
program/NN
and/CC
modest/JJ
improvement/NN
in/IN
discretionary/JJ
cash/NN
flow/NN
because/IN
of/IN
planned/JJ
asset/NN
sales/NNS
./.
Moody/NNP
's/POS
changes/NNS
affected/VBD
the/DT
following/JJ
issues/NNS
:/:
American/NNP
Medical/NNP
International/NNP
:/:
Senior/JJ
notes/NNS
,/,
sinking-fund/NN
debentures/NNS
,/,
Euromarket/NNP
notes/NNS
,/,
Eurobonds/NNPS
,/,
Swiss/JJ
franc/NN
bonds/NNS
,/,
unsecured/JJ
loan/NN
stock/NN
to/TO
Ba3/JJ
from/IN
Baa2/JJ
;/:
convertible/JJ
subordinated/JJ
debentures/NNS
,/,
notes/NNS
,/,
and/CC
sinking-fund/NN
debentures/NNS
to/TO
B2/JJ
from/IN
Baa3/JJ
./.
American/NNP
Medical/NNP
International/NNP
N.V./NNP
:/:
Guaranteed/JJ
Euroissues/NNS
to/TO
Ba3/JJ
from/IN
Baa2/JJ
./.
An/DT
American/NNP
Medical/NNP
spokeswoman/NN
said/VBD
the/DT
Moody/NNP
's/POS
downgrading/NN
was/VBD
expected/JJ
because/RB
of/IN
the/DT
nature/NN
of/IN
the/DT
takeover/NN
./.
Bay/NNP
Financial/NNP
Corp./NNP
,/,
Boston/NNP
,/,
which/WDT
has/VBZ
been/VBN
reporting/VBG
big/JJ
losses/NNS
and/CC
warning/VBG
of/IN
a/DT
possible/JJ
bankruptcy-law/NN
filing/NN
,/,
said/VBD
it/PRP
was/VBD
sued/VBN
by/IN
a/DT
holder/NN
./.
The/DT
real/JJ
estate/NN
investment/NN
trust/NN
said/VBD
the/DT
``/``
purported/JJ
class/NN
action/NN
suit/NN
,/,
''/''
seeks/VBZ
``/``
damages/NNS
and/CC
other/JJ
remedies/NNS
under/IN
federal/JJ
securities/NNS
law/NN
and/CC
state/NN
law/NN
./.
''/''
Gerald/NNP
E./NNP
Wilson/NNP
,/,
corporate/JJ
secretary/NN
and/CC
legal/JJ
counsel/NN
,/,
said/VBD
the/DT
company/NN
would/MD
n't/RB
disclose/VB
further/JJR
details/NNS
./.
He/PRP
declined/VBD
to/TO
name/VB
the/DT
shareholder/NN
,/,
the/DT
plaintiff/NN
's/POS
lawyer/NN
or/CC
the/DT
court/NN
where/WRB
the/DT
lawsuit/NN
was/VBD
filed/VBN
./.
Bay/NNP
,/,
which/WDT
has/VBZ
substantial/JJ
investments/NNS
in/IN
the/DT
floundering/VBG
Massachusetts/NNP
market/NN
,/,
reported/VBD
a/DT
loss/NN
of/IN
$/$
62/CD
million/CD
,/,
or/CC
$/$
15.97/CD
a/DT
share/NN
,/,
for/IN
the/DT
fiscal/JJ
year/NN
ended/VBN
June/NNP
30/CD
./.
It/PRP
has/VBZ
said/VBD
it/PRP
might/MD
seek/VB
bankruptcy-court/NN
protection/NN
from/IN
creditor/NN
lawsuits/NNS
if/IN
it/PRP
ca/MD
n't/RB
renegotiate/VB
its/PRP$
borrowings/NNS
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Bay/NNP
closed/VBD
at/IN
$/$
2.625/CD
,/,
down/RB
25/CD
cents/NNS
./.
Keith/NNP
A./NN
Tucker/NNP
was/VBD
named/VBN
a/DT
director/NN
of/IN
this/DT
insurance/NN
and/CC
financial/JJ
services/NNS
concern/NN
./.
Mr./NNP
Tucker/NNP
,/,
44/CD
years/NNS
old/JJ
,/,
is/VBZ
president/NN
of/IN
Trivest/NNP
Securities/NNPS
Corp./NNP
and/CC
senior/JJ
vice/NN
president/NN
of/IN
Trivest/NNP
Inc./NNP
,/,
closely/RB
held/JJ
investment/NN
companies/NNS
based/VBN
in/IN
Miami/NNP
./.
His/PRP$
selection/NN
increases/VBZ
the/DT
size/NN
of/IN
the/DT
board/NN
to/TO
12/CD
members/NNS
./.
Torchmark/NNP
also/RB
said/VBD
that/IN
Samuel/NNP
E./NNP
Upchurch/NNP
Jr./NNP
,/,
37/CD
,/,
vice/NN
president/NN
and/CC
general/JJ
counsel/NN
,/,
was/VBD
selected/VBN
to/TO
serve/VB
the/DT
remainder/NN
of/IN
the/DT
term/NN
vacated/VBN
by/IN
John/NNP
S.P./NNP
Samford/NNP
,/,
who/WP
resigned/VBD
as/IN
director/NN
./.
Philip/NNP
Morris/NNP
Cos./NNPS
,/,
New/NNP
York/NNP
,/,
adopted/VBD
a/DT
defense/NN
measure/NN
designed/VBN
to/TO
make/VB
a/DT
hostile/JJ
takeover/NN
prohibitively/RB
expensive/JJ
./.
The/DT
giant/JJ
foods/NNS
,/,
tobacco/NN
and/CC
brewing/NN
company/NN
said/VBD
it/PRP
will/MD
issue/VB
common-share/JJ
purchase/NN
rights/NNS
to/TO
shareholders/NNS
of/IN
record/NN
Nov./NNP
8/CD
./.
Under/IN
certain/JJ
circumstances/NNS
,/,
the/DT
rights/NNS
would/MD
entitle/VB
Philip/NNP
Morris/NNP
holders/NNS
to/TO
buy/VB
shares/NNS
of/IN
either/DT
the/DT
company/NN
or/CC
its/PRP$
acquirer/NN
for/IN
half/JJ
price/NN
./.
The/DT
board/NN
is/VBZ
n't/RB
aware/JJ
of/IN
any/DT
attempts/NNS
to/TO
take/VB
over/IN
Philip/NNP
Morris/NNP
,/,
the/DT
company/NN
said/VBD
./.
As/IN
of/IN
Sept./NNP
30/CD
,/,
Philip/NNP
Morris/NNP
had/VBD
926/CD
million/CD
shares/NNS
outstanding/JJ
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Philip/NNP
Morris/NNP
shares/NNS
closed/VBN
yesterday/NN
at/IN
$/$
43.50/CD
each/DT
,/,
down/RB
$/$
1/CD
./.
Beghin-Say/NNP
S.A./NNP
said/VBD
that/IN
it/PRP
plans/VBZ
to/TO
sell/VB
its/PRP$
remaining/VBG
paper/NN
operations/NNS
by/IN
the/DT
end/NN
of/IN
January/NNP
as/IN
part/NN
of/IN
a/DT
drive/NN
to/TO
refocus/VB
on/IN
the/DT
food/NN
sector/NN
and/CC
lower/VB
its/PRP$
debt/NN
./.
The/DT
French/JJ
unit/NN
of/IN
Ferruzzi/NNP
Agricola/NNP
Finanziaria/NNP
also/RB
disclosed/VBD
a/DT
40/CD
%/NN
rise/NN
in/IN
its/PRP$
consolidated/JJ
net/JJ
profit/NN
for/IN
the/DT
first/JJ
half/NN
of/IN
1989/CD
,/,
excluding/VBG
nonrecurring/JJ
items/NNS
and/CC
after/IN
payments/NNS
to/TO
minority/NN
interests/NNS
./.
Beghin-Say/NNP
said/VBD
the/DT
sale/NN
will/MD
be/VB
done/VBN
in/IN
two/CD
parts/NNS
and/CC
will/MD
raise/VB
a/DT
total/NN
of/IN
2.025/CD
billion/CD
francs/NNS
$/$
325/CD
million/CD
This/DT
will/MD
include/VB
the/DT
sale/NN
of/IN
its/PRP$
interest/NN
in/IN
the/DT
joint/JJ
venture/NN
Beghin/NNP
Corbehem/NNP
to/TO
Feldemuehle/NNP
AG/NNP
./.
The/DT
West/JJ
German/JJ
paper/NN
company/NN
entered/VBD
the/DT
venture/NN
in/IN
April/NNP
1988/CD
by/IN
acquiring/VBG
a/DT
50/CD
%/NN
stake/NN
,/,
also/RB
from/IN
Beghin-Say/NNP
./.
The/DT
other/JJ
part/NN
of/IN
the/DT
transaction/NN
will/MD
see/VB
Beghin-Say/NNP
sell/VB
its/PRP$
50/CD
%/NN
stake/NN
in/IN
its/PRP$
Kaysersberg/NNP
paper/NN
affiliate/NN
to/TO
an/DT
unspecified/JJ
unit/NN
of/IN
the/DT
petrochemical/NN
group/NN
Montedison/NNP
S.p/NNP
./.
A./NNP
,/,
which/WDT
is/VBZ
also/RB
controlled/VBN
by/IN
Ferruzzi/NNP
./.
And/CC
in/IN
a/DT
separate/JJ
transaction/NN
,/,
Beghin-Say/NNP
will/MD
sell/VB
its/PRP$
remaining/VBG
25/CD
%/NN
interest/NN
in/IN
A.T.B./NNP
,/,
a/DT
holding/VBG
company/NN
for/IN
international/JJ
trading/NN
assets/NNS
,/,
to/TO
an/DT
unspecified/JJ
unit/NN
of/IN
Ferruzzi/NNP
for/IN
258/CD
million/CD
francs/NNS
./.
Esselte/NNP
AB/NNP
,/,
the/DT
Stockholm/NNP
office/NN
supplies/NNS
company/NN
,/,
as/IN
expected/VBN
,/,
proposed/VBD
to/TO
acquire/VB
the/DT
22/CD
%/NN
it/PRP
does/VBZ
n't/RB
own/VB
of/IN
its/PRP$
U.S./NNP
unit/NN
,/,
Esselte/NNP
Business/NNP
Systems/NNPS
Inc/NNP
./.
The/DT
price/NN
in/IN
the/DT
proposal/NN
is/VBZ
$/$
43.50/CD
for/IN
each/DT
of/IN
the/DT
4.9/CD
million/CD
shares/NNS
the/DT
parent/NN
does/VBZ
n't/RB
own/VB
,/,
or/CC
$/$
213.2/CD
million/CD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Esselte/NNP
closed/VBN
yesterday/RB
at/IN
$/$
43.50/CD
a/DT
share/NN
,/,
up/RB
$/$
1/CD
./.
A/DT
committee/NN
of/IN
outside/JJ
directors/NNS
for/IN
the/DT
Garden/NNP
City/NNP
,/,
N.Y./NNP
,/,
unit/NN
is/VBZ
evaluating/VBG
the/DT
proposal/NN
;/:
the/DT
parent/NN
asked/VBD
it/PRP
to/TO
respond/VB
by/IN
Oct./NNP
31/CD
./.
The/DT
unit/NN
said/VBD
it/PRP
can/MD
provide/VB
no/DT
assurance/NN
a/DT
transaction/NN
will/MD
occur/VB
./.
Esselte/NNP
AB/NNP
sold/VBD
the/DT
minority/NN
stake/NN
five/CD
years/NNS
ago/RB
in/IN
a/DT
$/$
40/CD
million/CD
international/JJ
share/NN
offering/NN
./.
The/DT
unit/NN
,/,
which/WDT
is/VBZ
the/DT
holding/VBG
company/NN
for/IN
Esselte/NNP
's/POS
non-Swedish/JJ
units/NNS
,/,
accounted/VBN
for/IN
58/CD
%/NN
of/IN
sales/NNS
and/CC
71/CD
%/NN
of/IN
operating/NN
profit/NN
last/JJ
year/NN
./.
Separately/RB
,/,
Esselte/NNP
Business/NNP
Systems/NNPS
reported/VBD
third-quarter/JJ
net/JJ
income/NN
fell/VBD
5.9/CD
%/NN
to/TO
$/$
9.5/CD
million/CD
,/,
or/CC
46/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
10.1/CD
million/CD
,/,
or/CC
49/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
year-ago/JJ
period/NN
./.
Sales/NNS
rose/VBD
2.9/CD
%/NN
to/TO
$/$
329.2/CD
million/CD
from/IN
$/$
320/CD
million/CD
./.
House/NNP
and/CC
Senate/NNP
conferees/NNS
agreed/VBD
to/TO
continue/VB
production/NN
of/IN
Grumman/NNP
Corp./NNP
's/POS
F-14/NN
and/CC
to/TO
provide/VB
more/JJR
than/IN
$/$
3.8/CD
billion/CD
for/IN
the/DT
Strategic/NNP
Defense/NNP
Initiative/NNP
during/IN
the/DT
current/JJ
fiscal/JJ
year/NN
./.
Industry/NN
officials/NNS
and/CC
congressional/JJ
aides/NNS
said/VBD
that/IN
the/DT
main/JJ
points/NNS
of/IN
a/DT
compromise/NN
defense/NN
authorization/NN
bill/NN
,/,
hammered/VBN
out/RB
during/IN
a/DT
flurry/NN
of/IN
private/JJ
meetings/NNS
over/IN
the/DT
past/JJ
few/JJ
days/NNS
,/,
provide/VBP
a/DT
face-saving/JJ
compromise/NN
for/IN
both/DT
the/DT
White/NNP
House/NNP
and/CC
House/NNP
Democrats/NNPS
./.
Although/IN
conferees/NNS
are/VBP
still/RB
putting/VBG
the/DT
finishing/JJ
touches/NNS
on/IN
the/DT
package/NN
,/,
the/DT
final/JJ
agreement/NN
could/MD
be/VB
announced/VBN
as/RB
early/RB
as/IN
tomorrow/NN
./.
An/DT
announcement/NN
is/VBZ
more/RBR
likely/JJ
next/JJ
week/NN
,/,
though/RB
./.
President/NNP
Bush/NNP
and/CC
other/JJ
supporters/NNS
of/IN
SDI/NNP
will/MD
be/VB
able/JJ
to/TO
take/VB
credit/NN
for/IN
blocking/VBG
House/NNP
efforts/NNS
to/TO
significantly/RB
cut/VB
the/DT
program/NN
to/TO
develop/VB
a/DT
space-based/JJ
antimissile/JJ
system/NN
,/,
which/WDT
already/RB
has/VBZ
cost/VBN
some/DT
$/$
17/CD
billion/CD
./.
Senate/NNP
Armed/NNP
Services/NNPS
Committee/NNP
Chairman/NNP
Sam/NNP
Nunn/NNP
D./NNP
,/,
Ga/NNP
./.
other/JJ
Senate/NNP
conferees/NNS
have/VBP
opposed/VBN
the/DT
House/NNP
cuts/NNS
,/,
stalling/VBG
for/IN
almost/RB
two/CD
months/NNS
action/NN
on/IN
a/DT
number/NN
of/IN
big-ticket/JJ
items/NNS
in/IN
the/DT
Pentagon/NNP
's/POS
budget/NN
./.
The/DT
Senate/NNP
voted/VBD
to/TO
authorize/VB
$/$
4.5/CD
billion/CD
for/IN
SDI/NNP
spending/NN
in/IN
the/DT
current/JJ
fiscal/JJ
year/NN
,/,
but/CC
the/DT
House/NN
,/,
reflecting/VBG
a/DT
dramatic/JJ
erosion/NN
of/IN
support/NN
for/IN
the/DT
program/NN
,/,
earmarked/VBD
only/RB
$/$
3.1/CD
billion/CD
./.
Despite/IN
the/DT
widening/VBG
gap/NN
between/IN
the/DT
two/CD
sides/NNS
,/,
conferees/NNS
eventually/RB
followed/VBD
the/DT
pattern/NN
set/VBN
in/IN
previous/JJ
years/NNS
by/IN
opting/VBG
to/TO
roughly/RB
split/VB
the/DT
difference/NN
./.
That/DT
would/MD
hold/VB
spending/NN
on/IN
the/DT
program/NN
at/IN
about/IN
the/DT
previous/JJ
year/NN
's/POS
level/NN
./.
The/DT
decision/NN
to/TO
keep/VB
the/DT
embattled/JJ
F-14/NN
's/POS
production/NN
line/NN
running/VBG
for/IN
at/IN
least/JJS
another/DT
year/NN
is/VBZ
an/DT
important/JJ
victory/NN
for/IN
the/DT
House/NNP
,/,
and/CC
especially/RB
for/IN
Rep./NNP
Les/NNP
Aspin/NNP
D./NNP
,/,
Wis/NNP
./.
As/IN
the/DT
head/NN
of/IN
the/DT
House/NNP
conferees/NNS
,/,
Rep./NNP
Aspin/NNP
has/VBZ
been/VBN
under/IN
intense/JJ
pressure/NN
from/IN
his/PRP$
colleagues/NNS
to/TO
reject/VB
Senate/NNP
provisions/NNS
that/WDT
would/MD
have/VB
abruptly/RB
cut/VBN
further/JJ
F-14/NN
production/NN
./.
The/DT
package/NN
``/``
provides/VBZ
a/DT
temporary/JJ
,/,
golden/JJ
parachute/NN
for/IN
Grumman/NNP
,/,
''/''
according/VBG
to/TO
one/CD
congressional/JJ
aide/NN
familiar/JJ
with/IN
the/DT
closed-door/JJ
bargaining/NN
./.
But/CC
as/IN
part/NN
of/IN
the/DT
overall/JJ
agreement/NN
,/,
Grumman/NNP
and/CC
its/PRP$
outspoken/JJ
supporters/NNS
on/IN
Capitol/NNP
Hill/NNP
effectively/RB
will/MD
be/VB
precluded/VBN
from/IN
reopening/VBG
the/DT
emotional/JJ
issue/NN
in/IN
the/DT
debate/NN
over/IN
next/JJ
year/NN
's/POS
budget/NN
./.
Defense/NNP
Secretary/NNP
Dick/NNP
Cheney/NNP
and/CC
most/JJS
senators/NNS
contend/VBP
that/IN
the/DT
Navy/NNP
's/POS
F-14/NN
is/VBZ
too/RB
expensive/JJ
in/IN
an/DT
era/NN
of/IN
shrinking/VBG
Pentagon/NNP
budgets/NNS
./.
But/CC
the/DT
plane/NN
boasts/VBZ
a/DT
strong/JJ
core/NN
of/IN
support/NN
in/IN
the/DT
House/NNP
,/,
where/WRB
members/NNS
are/VBP
intent/JJ
on/IN
saving/VBG
Grumman/NNP
jobs/NNS
and/CC
are/VBP
worried/VBN
about/IN
potential/JJ
shortages/NNS
of/IN
carrier-based/JJ
aircraft/NN
by/IN
the/DT
late/JJ
1990s/NNS
./.
Conferees/NNS
also/RB
agreed/VBD
to/TO
Pentagon/NNP
requests/NNS
to/TO
earmark/VB
a/DT
total/NN
of/IN
nearly/RB
$/$
1/CD
billion/CD
for/IN
work/NN
on/IN
both/DT
mobile/JJ
MX/NNP
and/CC
Midgetman/NNP
nuclear/JJ
missiles/NNS
,/,
according/VBG
to/TO
congressional/JJ
aides/NNS
./.
And/CC
lawmakers/NNS
are/VBP
putting/VBG
the/DT
finishing/JJ
touches/NNS
on/IN
a/DT
compromise/NN
that/WDT
would/MD
give/VB
the/DT
Air/NNP
Force/NNP
nearly/RB
all/DT
of/IN
the/DT
$/$
2.4/CD
billion/CD
it/PRP
wants/VBZ
for/IN
production/NN
of/IN
Northrop/NNP
Corp./NNP
's/POS
radar-eluding/VBG
B-2/NN
bombers/NNS
,/,
which/WDT
cost/VBP
$/$
530/CD
million/CD
apiece/RB
./.
The/DT
final/JJ
B-2/NN
agreement/NN
is/VBZ
certain/JJ
to/TO
require/VB
detailed/JJ
testing/NN
and/CC
verification/NN
of/IN
the/DT
bomber/NN
's/POS
capabilities/NNS
,/,
but/CC
congressional/JJ
aides/NNS
said/VBD
the/DT
accord/NN
wo/MD
n't/RB
include/VB
a/DT
House-passed/JJ
provision/NN
that/WDT
would/MD
have/VB
withheld/VBN
production/NN
funds/NNS
until/IN
Congress/NNP
approves/VBZ
a/DT
cheaper/JJR
,/,
scaled-down/JJ
version/NN
of/IN
the/DT
$/$
70/CD
billion/CD
fleet/NN
of/IN
132/CD
B-2s/NNS
envisioned/VBN
by/IN
the/DT
Pentagon/NNP
./.
Consolidated/NNP
Freightways/NNPS
Inc./NNP
reported/VBD
a/DT
77/CD
%/NN
drop/NN
in/IN
third-quarter/JJ
net/JJ
income/NN
,/,
citing/VBG
expected/JJ
losses/NNS
in/IN
its/PRP$
Emery/NNP
Worldwide/NNP
shipping/VBG
business/NN
./.
The/DT
Menlo/NNP
Park/NNP
,/,
Calif./NNP
,/,
company/NN
said/VBD
net/NN
was/VBD
$/$
7.4/CD
million/CD
,/,
or/CC
22/CD
cents/NNS
a/DT
share/NN
,/,
down/RB
from/IN
$/$
32.3/CD
million/CD
,/,
or/CC
86/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
ago/RB
./.
Revenue/NN
totaled/VBD
$/$
1.01/CD
billion/CD
,/,
a/DT
43/CD
%/NN
increase/NN
from/IN
$/$
704.4/CD
million/CD
,/,
reflecting/VBG
the/DT
company/NN
's/POS
acquisition/NN
of/IN
Emery/NNP
earlier/RB
this/DT
year/NN
./.
Profit/NN
also/RB
suffered/VBD
because/IN
of/IN
``/``
intense/JJ
''/''
discounting/NN
in/IN
its/PRP$
long-haul/JJ
trucking/NN
business/NN
,/,
the/DT
company/NN
said/VBD
./.
Analysts/NNS
had/VBD
expected/VBN
Consolidated/NNP
to/TO
post/VB
a/DT
slim/JJ
profit/NN
,/,
and/CC
the/DT
company/NN
's/POS
stock/NN
was/VBD
down/RB
only/RB
25/CD
cents/NNS
to/TO
$/$
30.25/CD
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
./.
``/``
They/PRP
have/VBP
to/TO
continue/VB
to/TO
tighten/VB
their/PRP$
belts/NNS
,/,
''/''
said/VBD
Craig/NNP
Kloner/NNP
,/,
an/DT
analyst/NN
at/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
./.
A/DT
round/NN
of/IN
futures-related/JJ
program/NN
selling/NN
near/IN
the/DT
close/NN
sent/VBD
the/DT
stock/NN
market/NN
lower/RBR
in/IN
otherwise/RB
directionless/JJ
trading/NN
./.
Nervousness/NN
that/IN
the/DT
market/NN
has/VBZ
n't/RB
seen/VBN
the/DT
last/JJ
of/IN
its/PRP$
recent/JJ
volatility/NN
kept/VBD
trading/NN
at/IN
a/DT
moderate/JJ
pace/NN
,/,
as/IN
did/VBD
anticipation/NN
of/IN
a/DT
report/NN
on/IN
the/DT
economy/NN
's/POS
third-quarter/JJ
performance/NN
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
,/,
which/WDT
plunged/VBD
more/JJR
than/IN
80/CD
points/NNS
in/IN
early/JJ
trading/NN
Tuesday/NNP
and/CC
then/RB
recovered/VBD
nearly/RB
all/DT
of/IN
its/PRP$
losses/NNS
by/IN
the/DT
close/NN
,/,
fell/VBD
5.94/CD
to/TO
2653.28/CD
in/IN
the/DT
latest/JJS
session/NN
./.
The/DT
average/NN
drifted/VBD
in/IN
a/DT
trading/NN
range/NN
of/IN
about/IN
30/CD
points/NNS
throughout/IN
the/DT
day/NN
./.
The/DT
lower/JJR
boundary/NN
was/VBD
established/VBN
just/RB
after/IN
the/DT
opening/NN
in/IN
a/DT
brief/JJ
round/NN
of/IN
selling/NN
;/:
the/DT
upper/JJ
boundary/NN
was/VBD
set/VBN
at/IN
midday/NN
as/IN
scattered/JJ
bargain-hunting/NN
pushed/VBD
prices/NNS
higher/RBR
./.
Buying/NN
interest/NN
in/IN
Du/NNP
Pont/NNP
,/,
which/WDT
declared/VBD
a/DT
stock/NN
split/NN
and/CC
a/DT
dividend/NN
boost/NN
,/,
and/CC
certain/JJ
other/JJ
blue-chip/JJ
issues/NNS
gave/VBD
the/DT
industrial/JJ
average/NN
a/DT
better/JJR
performance/NN
than/IN
broader/JJR
indexes/NNS
./.
Standard/NNP
&/CC
Poor/NNP
's/POS
500-Stock/NNP
Index/NNP
dropped/VBD
1.20/CD
to/TO
342.50/CD
;/:
the/DT
decline/NN
was/VBD
the/DT
equivalent/NN
of/IN
a/DT
nine-point/JJ
setback/NN
in/IN
the/DT
30-stock/JJ
average/NN
./.
The/DT
Dow/NNP
Jones/NNP
Equity/NNP
Market/NNP
Index/NNP
fell/VBD
1.16/CD
to/TO
320.94/CD
and/CC
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
Composite/NNP
Index/NNP
slid/VBD
0.53/CD
to/TO
189.52/CD
./.
But/CC
advancing/VBG
issues/NNS
topped/VBD
decliners/NNS
by/IN
784/CD
to/TO
700/CD
on/IN
the/DT
Big/NNP
Board/NNP
despite/IN
the/DT
late/JJ
sell/NN
programs/NNS
,/,
resulting/VBG
from/IN
stock-index/NN
arbitrage/NN
./.
The/DT
programs/NNS
occurred/VBD
against/IN
the/DT
backdrop/NN
of/IN
a/DT
late/JJ
pullback/NN
in/IN
UAL/NNP
,/,
which/WDT
had/VBD
held/VBN
at/IN
slightly/RB
lower/JJR
levels/NNS
through/IN
most/JJS
of/IN
the/DT
session/NN
amid/IN
optimism/NN
that/IN
another/DT
bidder/NN
might/MD
surface/VB
./.
Traders/NNS
said/VBD
program/NN
activity/NN
was/VBD
n't/RB
in/IN
evidence/NN
through/IN
most/JJS
of/IN
the/DT
session/NN
,/,
however/RB
,/,
and/CC
Big/NNP
Board/NNP
volume/NN
dropped/VBD
to/TO
155,650,000/CD
shares/NNS
from/IN
about/IN
238/CD
million/CD
Tuesday/NNP
as/IN
concerns/NNS
about/IN
the/DT
potential/NN
for/IN
additional/JJ
sharp/JJ
swings/NNS
in/IN
the/DT
market/NN
kept/VBD
other/JJ
trading/NN
in/IN
check/NN
./.
``/``
People/NNS
are/VBP
sort/RB
of/RB
nervous/JJ
to/TO
do/VB
anything/NN
in/IN
the/DT
market/NN
now/RB
./.
Our/PRP$
phones/NNS
are/VBP
quiet/JJ
around/IN
here/RB
,/,
''/''
said/VBD
Don/NNP
R./NNP
Hays/NNP
,/,
director/NN
of/IN
investment/NN
strategy/NN
at/IN
Wheat/NNP
First/NNP
Butcher/NNP
&/CC
Singer/NNP
Inc./NNP
,/,
Richmond/NNP
,/,
Va/NNP
./.
The/DT
gross/JJ
national/JJ
product/NN
report/NN
,/,
due/JJ
to/TO
be/VB
released/VBN
before/IN
today/NN
's/POS
opening/NN
,/,
is/VBZ
expected/VBN
to/TO
show/VB
that/IN
the/DT
economy/NN
continued/VBD
to/TO
expand/VB
in/IN
the/DT
third/JJ
quarter/NN
at/IN
a/DT
moderate/JJ
pace/NN
./.
The/DT
consensus/NN
of/IN
economists/NNS
polled/VBN
by/IN
Dow/NNP
Jones/NNP
Capital/NNP
Markets/NNPS
Report/NNP
calls/VBZ
for/IN
a/DT
2.5/CD
%/NN
annual/JJ
growth/NN
rate/NN
for/IN
GNP/NNP
during/IN
the/DT
quarter/NN
./.
Du/NNP
Pont/NNP
,/,
which/WDT
announced/VBD
plans/NNS
for/IN
a/DT
3-for-1/JJ
stock/NN
split/NN
and/CC
raised/VBD
its/PRP$
quarterly/JJ
dividend/NN
by/IN
14/CD
%/NN
,/,
jumped/VBD
2/CD
1\/2/CD
to/TO
117/CD
3\/8/CD
./.
The/DT
company/NN
also/RB
posted/VBD
third-quarter/JJ
earnings/NNS
that/WDT
were/VBD
in/IN
line/NN
with/IN
analysts/NNS
'/POS
forecasts/NNS
./.
Blue-chip/JJ
consumer/NN
stocks/NNS
also/RB
provided/VBD
a/DT
lift/NN
to/TO
the/DT
industrial/JJ
average/NN
./.
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
rose/VBD
3\/8/CD
to/TO
43/CD
1\/2/CD
in/IN
Big/NNP
Board/NNP
composite/JJ
trading/NN
of/IN
1.5/CD
million/CD
shares/NNS
,/,
Chevron/NNP
advanced/VBD
1/CD
3\/4/CD
to/TO
66/CD
5\/8/CD
on/IN
2.3/CD
million/CD
shares/NNS
,/,
Woolworth/NNP
rose/VBD
1/CD
to/TO
58/CD
5\/8/CD
,/,
Coca-Cola/NNP
Co./NNP
gained/VBD
5\/8/CD
to/TO
72/CD
1\/2/CD
and/CC
Eastman/NNP
Kodak/NNP
added/VBD
3\/8/CD
to/TO
44/CD
1\/2/CD
./.
But/CC
General/NNP
Motors/NNPS
dropped/VBD
1/CD
7\/8/CD
to/TO
44/CD
7\/8/CD
./.
Its/PRP$
GM/NNP
Hughes/NNP
Electronics/NNPS
and/CC
financial-services/NNS
units/NNS
both/DT
reported/VBD
that/IN
third-quarter/JJ
earnings/NNS
were/VBD
down/RB
from/IN
a/DT
year/NN
earlier/RB
./.
Anheuser-Busch/NNP
plunged/VBD
4/CD
3\/8/CD
to/TO
38/CD
1\/2/CD
on/IN
3.5/CD
million/CD
shares/NNS
./.
Its/PRP$
third-quarter/JJ
earnings/NNS
were/VBD
lower/JJR
than/IN
analysts/NNS
had/VBD
forecast/VBN
,/,
and/CC
the/DT
company/NN
said/VBD
it/PRP
had/VBD
lowered/VBN
its/PRP$
projections/NNS
for/IN
earnings/NNS
growth/NN
through/IN
the/DT
end/NN
of/IN
1990/CD
because/IN
of/IN
planned/JJ
price/NN
cuts/NNS
./.
Xerox/NNP
fell/VBD
3/CD
1\/8/CD
to/TO
59/CD
5\/8/CD
./.
Disappointment/NN
with/IN
the/DT
company/NN
's/POS
earnings/NNS
for/IN
the/DT
quarter/NN
led/VBD
Prudential-Bache/NNP
Securities/NNPS
to/TO
reduce/VB
its/PRP$
1989/CD
and/CC
1990/CD
earnings/NNS
estimates/NNS
,/,
according/VBG
to/TO
Dow/NNP
Jones/NNP
Professional/NNP
Investor/NNP
Report/NNP
./.
Computer/NNP
Associates/NNPS
International/NNP
,/,
the/DT
most/RBS
active/JJ
Big/NNP
Board/NNP
issue/NN
,/,
was/VBD
another/DT
victim/NN
of/IN
an/DT
earnings-related/JJ
sell-off/NN
./.
The/DT
stock/NN
fell/VBD
3\/4/CD
to/TO
12/CD
7\/8/CD
as/IN
3.6/CD
million/CD
shares/NNS
were/VBD
traded/VBN
in/IN
the/DT
wake/NN
of/IN
its/PRP$
report/NN
that/DT
fiscal/JJ
second-quarter/JJ
net/JJ
income/NN
fell/VBD
66/CD
%/NN
from/IN
a/DT
year/NN
ago/RB
./.
Insurance/NN
stocks/NNS
moved/VBD
higher/RBR
in/IN
the/DT
wake/NN
of/IN
a/DT
strong/JJ
third-quarter/JJ
earnings/NNS
report/NN
from/IN
Chubb/NNP
,/,
coming/VBG
on/IN
the/DT
heels/NNS
of/IN
speculation/NN
that/IN
last/JJ
week/NN
's/POS
devastating/JJ
earthquake/NN
in/IN
the/DT
San/NNP
Francisco/NNP
area/NN
would/MD
lead/VB
to/TO
higher/JJR
premium/JJ|NN
rates/NNS
./.
Chubb/NNP
,/,
whose/WP$
net/JJ
income/NN
for/IN
the/DT
quarter/NN
exceeded/VBD
most/JJS
analysts/NNS
'/POS
expectations/NNS
,/,
rallied/VBD
3/CD
3\/4/CD
to/TO
86/CD
1\/2/CD
./.
Aetna/NNP
Life/NNP
&/CC
Casualty/NNP
gained/VBD
1/CD
3\/8/CD
to/TO
61/CD
1\/8/CD
,/,
Cigna/NNP
advanced/VBD
7\/8/CD
to/TO
64/CD
3\/4/CD
,/,
Travelers/NNP
added/VBD
1\/2/CD
to/TO
40/CD
3\/8/CD
and/CC
American/NNP
International/NNP
Group/NNP
rose/VBD
3/CD
1\/8/CD
to/TO
107/CD
3\/4/CD
./.
Comprehensive/NNP
Care/NNP
plunged/VBD
4/CD
3\/4/CD
to/TO
3/CD
5\/8/CD
on/IN
1.2/CD
million/CD
shares/NNS
./.
The/DT
company/NN
reported/VBD
a/DT
third-quarter/JJ
loss/NN
and/CC
said/VBD
it/PRP
is/VBZ
holding/VBG
talks/NNS
with/IN
its/PRP$
bank/NN
lenders/NNS
for/IN
an/DT
extension/NN
on/IN
some/DT
overdue/JJ
debt/NN
payments/NNS
./.
TW/NNP
Services/NNPS
dropped/VBD
1/CD
1\/4/CD
to/TO
31/CD
1\/4/CD
following/VBG
the/DT
postponement/NN
of/IN
a/DT
$/$
1.4/CD
billion/CD
junk-bond/NN
offering/NN
that/WDT
would/MD
have/VB
permitted/VBN
Coniston/NNP
Partners/NNPS
to/TO
complete/VB
its/PRP$
takeover/NN
of/IN
the/DT
company/NN
./.
Coniston/NNP
said/VBD
it/PRP
would/MD
pursue/VB
``/``
various/JJ
financing/VBG
alternatives/NNS
./.
''/''
UAL/NNP
stock/NN
declined/VBD
by/IN
9/CD
to/TO
161/CD
after/IN
nobody/NN
surfaced/VBD
to/TO
claim/VB
credit/NN
for/IN
aggressive/JJ
buying/NN
Tuesday/NNP
by/IN
Bear/NNP
Stearns/NNP
that/WDT
sent/VBD
UAL/NNP
stock/NN
up/RB
35/CD
points/NNS
in/IN
a/DT
matter/NN
of/IN
hours/NNS
./.
Tuesday/NNP
's/POS
rumored/VBN
buyer/NN
,/,
Coniston/NNP
Partners/NNPS
,/,
would/MD
n't/RB
comment/VB
on/IN
speculation/NN
that/IN
Coniston/NNP
,/,
which/WDT
battled/VBD
the/DT
UAL/NNP
board/NN
in/IN
1987/CD
,/,
might/MD
challenge/VB
the/DT
board/NN
's/POS
decision/NN
Monday/NNP
to/TO
remain/VB
independent/JJ
./.
Other/JJ
airline/NN
stocks/NNS
were/VBD
mixed/JJ
./.
AMR/NNP
,/,
which/WDT
owns/VBZ
American/NNP
Airlines/NNPS
,/,
rose/VBD
3/CD
3\/8/CD
to/TO
72/CD
1\/4/CD
;/:
USAir/NNP
Group/NNP
fell/VBD
1/CD
1\/2/CD
to/TO
38/CD
5\/8/CD
,/,
and/CC
Delta/NNP
Air/NNP
Lines/NNPS
rose/VBD
1\/2/CD
to/TO
66/CD
1\/2/CD
after/IN
posting/VBG
higher/JJR
earnings/NNS
for/IN
the/DT
September/NNP
quarter/NN
./.
Stocks/NNS
that/WDT
reportedly/RB
benefited/VBD
Tuesday/NNP
from/IN
a/DT
Japanese/JJ
buy/NN
program/NN
handled/VBN
by/IN
PaineWebber/NNP
gave/VBD
back/RB
some/DT
of/IN
their/PRP$
gains/NNS
./.
Procter/NNP
&/CC
Gamble/NNP
went/VBD
down/RB
3/CD
1\/2/CD
to/TO
130/CD
,/,
Dow/NNP
Jones/NNP
fell/VBD
3/CD
1\/2/CD
to/TO
37/CD
1\/2/CD
and/CC
Rockwell/NNP
International/NNP
dropped/VBD
2/CD
1\/8/CD
to/TO
25/CD
./.
However/RB
,/,
Atlantic/NNP
Richfield/NNP
preserved/VBD
its/PRP$
twopoint/NN
advance/NN
in/IN
the/DT
previous/JJ
session/NN
and/CC
added/VBD
1\/8/CD
to/TO
103/CD
7\/8/CD
./.
General/NNP
Mills/NNPS
gained/VBD
2/CD
1\/4/CD
to/TO
72/CD
7\/8/CD
./.
Goldman/NNP
Sachs/NNP
placed/VBD
the/DT
stock/NN
back/RB
on/IN
its/PRP$
list/NN
of/IN
recommended/JJ
issues/NNS
,/,
raised/VBD
its/PRP$
1990/CD
earnings/NNS
estimate/NN
and/CC
recommended/VBD
that/IN
its/PRP$
clients/NNS
shift/VB
funds/NNS
from/IN
Kellogg/NNP
to/TO
General/NNP
Mills/NNPS
./.
Kellogg/NNP
dropped/VBD
1/CD
3\/4/CD
to/TO
73/CD
1\/4/CD
./.
Manville/NNP
advanced/VBD
3\/4/CD
to/TO
10/CD
./.
The/DT
company/NN
offered/VBD
to/TO
purchase/VB
$/$
500/CD
million/CD
of/IN
convertible/JJ
preferred/JJ
stock/NN
from/IN
the/DT
trust/NN
that/WDT
handles/VBZ
its/PRP$
payments/NNS
to/TO
asbestos/NN
victims/NNS
./.
Di/NNP
Giorgio/NNP
gained/VBD
1/CD
to/TO
30/CD
3\/4/CD
after/IN
the/DT
company/NN
said/VBD
it/PRP
is/VBZ
starting/VBG
negotiations/NNS
with/IN
unidentified/JJ
parties/NNS
interested/JJ
in/IN
acquiring/VBG
its/PRP$
units/NNS
./.
Investor/NNP
Arthur/NNP
Goldberg/NNP
is/VBZ
pursuing/VBG
a/DT
$/$
32-a-share/JJ
takeover/NN
offer/NN
./.
Esselte/NNP
Business/NNP
Systems/NNPS
rose/VBD
1/CD
to/TO
43/CD
1\/2/CD
./.
Esselte/NNP
AB/NNP
of/IN
Sweden/NNP
offered/VBD
$/$
43.50/CD
a/DT
share/NN
for/IN
the/DT
22/CD
%/NN
of/IN
the/DT
company/NN
it/PRP
does/VBZ
n't/RB
already/RB
own/VB
./.
Public/NNP
Service/NNP
of/IN
New/NNP
Hampshire/NNP
went/VBD
up/RB
3\/8/CD
to/TO
4/CD
./.
Northeast/NNP
Utilities/NNPS
boosted/VBD
its/PRP$
offer/NN
to/TO
acquire/VB
the/DT
company/NN
by/IN
$/$
400/CD
million/CD
,/,
to/TO
$/$
2.25/CD
billion/CD
./.
Newell/NNP
,/,
which/WDT
declared/VBD
a/DT
2-for-1/JJ
stock/NN
split/NN
and/CC
boosted/VBD
its/PRP$
quarterly/JJ
dividend/NN
by/IN
14/CD
%/NN
,/,
added/VBD
7\/8/CD
to/TO
49/CD
3\/8/CD
./.
Also/RB
,/,
the/DT
company/NN
posted/VBD
improved/JJ
third-quarter/JJ
earnings/NNS
./.
The/DT
American/NNP
Stock/NNP
Exchange/NNP
Market/NNP
Value/NNP
Index/NNP
fell/VBD
0.44/CD
to/TO
375.92/CD
./.
Volume/NN
totaled/VBD
8,930,000/CD
shares/NNS
./.
Mission/NNP
Resource/NNP
Partners/NNPS
lost/VBD
5/CD
1\/4/CD
to/TO
14/CD
1\/8/CD
./.
The/DT
partnership/NN
,/,
which/WDT
had/VBD
solicited/VBN
takeover/NN
offers/NNS
,/,
said/VBD
it/PRP
failed/VBD
to/TO
receive/VB
any/DT
adequate/JJ
bids/NNS
for/IN
all/DT
of/IN
its/PRP$
operations/NNS
but/CC
is/VBZ
reviewing/VBG
offers/NNS
for/IN
individual/NN
properties/NNS
./.
Japan/NNP
is/VBZ
going/VBG
on/IN
a/DT
capital-spending/JJ
binge/NN
that/WDT
could/MD
make/VB
its/PRP$
trade/NN
surpluses/NNS
even/RB
harder/RBR
to/TO
shrink/VB
./.
Its/PRP$
capital/NN
spending/NN
is/VBZ
growing/VBG
at/IN
double-digit/JJ
rates/NNS
for/IN
the/DT
second/JJ
year/NN
in/IN
a/DT
row/NN
,/,
and/CC
its/PRP$
superefficient/JJ
producers/NNS
of/IN
everything/NN
from/IN
cars/NNS
to/TO
computer/NN
chips/NNS
are/VBP
rushing/VBG
to/TO
expand/VB
capacity/NN
,/,
modernize/VB
factories/NNS
and/CC
develop/VB
new/JJ
products/NNS
./.
``/``
The/DT
boom/NN
's/VBZ
so/RB
huge/JJ
,/,
''/''
says/VBZ
Mitsuru/NNP
Saito/NNP
,/,
an/DT
economist/NN
at/IN
Sanwa/NNP
Research/NNP
Institute/NNP
,/,
``/``
it/PRP
makes/VBZ
you/PRP
think/VB
of/IN
the/DT
Golden/JJ
'60s/NNS
,/,
''/''
when/WRB
Japan/NNP
developed/VBD
rapidly/RB
./.
The/DT
more/JJR
factories/NNS
and/CC
robots/NNS
Japanese/JJ
manufacturers/NNS
add/VBP
,/,
the/DT
more/JJR
they/PRP
will/MD
be/VB
able/JJ
to/TO
export/VB
,/,
and/CC
the/DT
less/JJR
their/PRP$
domestic/JJ
customers/NNS
will/MD
need/VB
to/TO
import/VB
./.
At/IN
Canon/NNP
Inc./NNP
,/,
for/IN
example/NN
,/,
sales/NNS
are/VBP
up/RB
nearly/RB
20/CD
%/NN
this/DT
year/NN
;/:
so/CC
,/,
the/DT
maker/NN
of/IN
cameras/NNS
and/CC
computer/NN
printers/NNS
is/VBZ
doing/VBG
what/WP
any/DT
Japanese/JJ
company/NN
would/MD
do/VB
under/IN
the/DT
circumstances/NNS
:/:
It/PRP
is/VBZ
increasing/VBG
capital/JJ
spending/NN
--/:
by/IN
60/CD
%/NN
./.
It/PRP
is/VBZ
building/VBG
,/,
among/IN
other/JJ
things/NNS
,/,
a/DT
new/JJ
laser-beam-printer/NN
factory/NN
in/IN
western/JJ
Japan/NNP
that/WDT
can/MD
produce/VB
up/RB
to/TO
150,000/CD
printers/NNS
next/JJ
year/NN
./.
Some/DT
70/CD
%/NN
of/IN
them/PRP
are/VBP
to/TO
be/VB
exported/VBN
to/TO
the/DT
U.S/NNP
./.
Even/JJ
companies/NNS
in/IN
smokestack/NN
industries/NNS
wrestling/VBG
with/IN
world-wide/JJ
overcapacity/NN
are/VBP
joining/VBG
the/DT
boom/NN
./.
Japan/NNP
's/POS
steelmakers/NNS
are/VBP
raising/VBG
capital/JJ
spending/NN
22/CD
%/NN
this/DT
year/NN
to/TO
$/$
4.8/CD
billion/CD
./.
Hitachi/NNP
Zosen/NNP
Corp./NNP
,/,
a/DT
shipbuilder/NN
buried/VBN
in/IN
debt/NN
just/RB
a/DT
few/JJ
years/NNS
ago/RB
,/,
will/MD
build/VB
a/DT
machinery/NN
plant/NN
,/,
its/PRP$
first/JJ
expansion/NN
in/IN
14/CD
years/NNS
./.
So/RB
big/JJ
is/VBZ
the/DT
capital-spending/NN
boom/NN
that/IN
Japanese/JJ
companies/NNS
'/POS
outlays/NNS
in/IN
Japan/NNP
topped/VBD
American/JJ
companies/NNS
'/POS
domestic/JJ
outlays/NNS
by/IN
$/$
521.4/CD
billion/CD
to/TO
$/$
494.8/CD
billion/CD
in/IN
the/DT
12/CD
months/NNS
ended/VBD
March/NNP
31/CD
even/RB
though/IN
Japan/NNP
's/POS
total/JJ
output/NN
of/IN
goods/NNS
and/CC
services/NNS
is/VBZ
less/JJR
than/IN
two-thirds/NNS
America/NNP
's/POS
./.
From/IN
a/DT
financial/JJ
standpoint/NN
,/,
the/DT
boom/NN
could/MD
n't/RB
come/VB
at/IN
a/DT
better/JJR
time/NN
./.
Many/JJ
Japanese/JJ
companies/NNS
expect/VBP
record/NN
profits/NNS
this/DT
fiscal/JJ
year/NN
,/,
and/CC
Japanese/JJ
interest/NN
rates/NNS
,/,
though/IN
up/RB
a/DT
bit/NN
recently/RB
,/,
are/VBP
still/RB
low/JJ
./.
And/CC
in/IN
a/DT
business/NN
system/NN
where/WRB
shareholders/NNS
have/VBP
few/JJ
rights/NNS
and/CC
expect/VBP
only/JJ
modest/JJ
dividends/NNS
,/,
companies/NNS
can/MD
plow/VB
their/PRP$
profits/NNS
back/RB
into/IN
plant/NN
and/CC
equipment/NN
./.
But/CC
some/DT
economists/NNS
and/CC
government/NN
officials/NNS
here/RB
are/VBP
n't/RB
applauding/VBG
./.
They/PRP
fear/VBP
that/IN
the/DT
boom/NN
may/MD
be/VB
too/RB
big/JJ
for/IN
Japan/NNP
's/POS
or/CC
anyone/NN
else/RB
's/POS
good/NN
./.
``/``
It/PRP
's/VBZ
an/DT
explosive/JJ
cocktail/NN
''/''
thrown/VBN
at/IN
the/DT
world/NN
,/,
says/VBZ
Kenneth/NNP
Courtis/NNP
,/,
senior/JJ
economist/NN
at/IN
the/DT
Tokyo/NNP
unit/NN
of/IN
Deutsche/NNP
Bank/NNP
Group/NNP
./.
The/DT
Ministry/NNP
of/IN
International/NNP
Trade/NNP
and/CC
Industry/NNP
is/VBZ
so/RB
concerned/JJ
that/IN
it/PRP
recently/RB
took/VBD
the/DT
unusual/JJ
step/NN
of/IN
urging/VBG
Japanese/JJ
auto/NN
companies/NNS
to/TO
exercise/VB
caution/NN
in/IN
capital/NN
spending/NN
./.
MITI/NNP
officials/NNS
hope/VBP
to/TO
avoid/VB
yet-another/JJ
source/NN
of/IN
trade/NN
friction/NN
with/IN
the/DT
U.S./NNP
even/RB
though/IN
export/NN
restraints/NNS
currently/RB
limit/VBP
Japanese/JJ
car/NN
exports/NNS
to/TO
the/DT
U.S/NNP
./.
Not/RB
everyone/NN
is/VBZ
worried/VBN
,/,
however/RB
./.
Some/DT
economists/NNS
--/:
and/CC
many/JJ
Japanese/JJ
companies/NNS
--/:
are/VBP
puzzled/VBN
by/IN
the/DT
warnings/NNS
./.
The/DT
investment/NN
boom/NN
is/VBZ
mainly/RB
sparked/VBN
,/,
they/PRP
say/VBP
,/,
by/IN
strong/JJ
domestic/JJ
demand/NN
and/CC
is/VBZ
n't/RB
likely/JJ
to/TO
increase/VB
exports/NNS
sharply/RB
./.
Moreover/RB
,/,
much/JJ
investment/NN
is/VBZ
n't/RB
aimed/VBN
at/IN
increasing/VBG
capacity/NN
./.
According/VBG
to/TO
a/DT
survey/NN
of/IN
some/DT
2,400/CD
large/JJ
companies/NNS
by/IN
the/DT
Japan/NNP
Development/NNP
Bank/NNP
,/,
expanded/VBN
capacity/NN
is/VBZ
the/DT
goal/NN
of/IN
just/RB
51.8/CD
%/NN
of/IN
the/DT
outlays/NNS
;/:
for/IN
manufacturers/NNS
alone/RB
,/,
the/DT
figure/NN
is/VBZ
32/CD
%/NN
./.
The/DT
manufacturers/NNS
said/VBD
14.2/CD
%/NN
of/IN
their/PRP$
spending/NN
is/VBZ
designed/VBN
to/TO
improve/VB
products/NNS
or/CC
add/VB
new/JJ
ones/NNS
,/,
17.5/CD
%/NN
is/VBZ
to/TO
cut/VB
costs/NNS
,/,
12.5/CD
%/NN
is/VBZ
for/IN
research/NN
and/CC
development/NN
,/,
and/CC
the/DT
rest/NN
is/VBZ
for/IN
maintenance/NN
and/CC
other/JJ
purposes/NNS
./.
But/CC
the/DT
worriers/NNS
remain/VBP
unconvinced/JJ
./.
With/IN
Japan/NNP
running/VBG
enormous/JJ
trade/NN
surpluses/NNS
against/IN
much/RB
of/IN
the/DT
world/NN
,/,
they/PRP
think/VBP
that/IN
Japan/NNP
should/MD
meet/VB
the/DT
increased/VBN
domestic/JJ
demand/NN
by/IN
importing/VBG
more/JJR
./.
And/CC
eventually/RB
,/,
they/PRP
contend/VBP
,/,
domestic/JJ
demand/NN
will/MD
weaken/VB
,/,
forcing/VBG
companies/NNS
to/TO
emphasize/VB
exports/NNS
again/RB
./.
``/``
If/IN
there/EX
's/VBZ
a/DT
further/JJ
drive/NN
to/TO
export/VB
,/,
''/''
says/VBZ
Nobuyuki/NNP
Arai/NNP
,/,
an/DT
economist/NN
at/IN
the/DT
Japan/NNP
Development/NNP
Bank/NNP
,/,
``/``
that/DT
'll/MD
be/VB
a/DT
problem/NN
./.
''/''
Even/RB
in/IN
the/DT
short/JJ
run/NN
,/,
the/DT
investment/NN
boom/NN
could/MD
exacerbate/VB
a/DT
disturbing/JJ
trend/NN
:/:
Japanese/JJ
exports/NNS
are/VBP
showing/VBG
surprisingly/RB
little/JJ
tendency/NN
to/TO
ease/VB
./.
Japanese/JJ
auto/NN
makers/NNS
,/,
for/IN
example/NN
,/,
are/VBP
increasing/VBG
their/PRP$
production/NN
capacity/NN
in/IN
the/DT
U.S./NNP
;/:
the/DT
additional/JJ
production/NN
should/MD
,/,
in/IN
part/NN
,/,
replace/VB
imported/VBN
vehicles/NNS
with/IN
locally/RB
manufactured/VBN
ones/NNS
./.
But/CC
although/IN
Japanese/JJ
companies/NNS
increased/VBD
their/PRP$
U.S./NNP
auto/NN
output/NN
by/IN
42/CD
%/NN
from/IN
January/NNP
to/TO
September/NNP
compared/VBN
with/IN
the/DT
year-earlier/JJ
period/NN
,/,
their/PRP$
exports/NNS
to/TO
the/DT
U.S./NNP
will/MD
drop/VB
only/RB
9/CD
%/NN
this/DT
year/NN
,/,
Nikko/NNP
Research/NNP
Center/NNP
estimates/VBZ
./.
In/IN
contrast/NN
to/TO
previous/JJ
economic/JJ
booms/NNS
,/,
Japanese/NNP
auto/NN
companies/NNS
are/VBP
n't/RB
just/RB
trying/VBG
to/TO
boost/VB
production/NN
./.
Many/JJ
are/VBP
pouring/VBG
money/NN
into/IN
developing/VBG
high-quality/JJ
products/NNS
to/TO
target/VB
affluent/JJ
consumers/NNS
and/CC
,/,
to/TO
some/DT
extent/NN
,/,
to/TO
avoid/VB
direct/JJ
combat/NN
with/IN
cheaper/JJR
cars/NNS
from/IN
South/NNP
Korea/NNP
and/CC
Taiwan/NNP
./.
Others/NNS
are/VBP
replacing/VBG
older/JJR
facilities/NNS
with/IN
flexible/JJ
assembly/NN
lines/NNS
on/IN
which/WDT
different/JJ
models/NNS
can/MD
be/VB
turned/VBN
out/RB
at/IN
once/RB
./.
So/RB
many/JJ
companies/NNS
are/VBP
investing/VBG
in/IN
high-tech/JJ
machinery/NN
that/IN
Fanuc/NNP
Ltd./NNP
,/,
a/DT
robot/NN
maker/NN
,/,
also/RB
had/VBD
to/TO
build/VB
a/DT
new/JJ
plant/NN
./.
The/DT
buildup/NN
is/VBZ
``/``
making/VBG
Japan/NNP
clearly/RB
more/RBR
efficient/JJ
,/,
more/RBR
technologically/RB
advanced/JJ
and/CC
more/RBR
competitive/JJ
,/,
''/''
declares/VBZ
a/DT
Western/JJ
diplomat/NN
in/IN
Tokyo/NNP
./.
But/CC
whatever/WDT
its/PRP$
effects/NNS
on/IN
exports/NNS
and/CC
imports/NNS
,/,
Japan/NNP
's/POS
investment/NN
boom/NN
during/IN
the/DT
past/JJ
two/CD
years/NNS
has/VBZ
been/VBN
stimulated/VBN
at/IN
least/JJS
partly/RB
by/IN
soaring/VBG
domestic/JJ
demand/NN
./.
Japan/NNP
's/POS
marathon/NN
economy/NN
,/,
growing/VBG
at/IN
4.3/CD
%/NN
this/DT
year/NN
,/,
is/VBZ
now/RB
in/IN
its/PRP$
35th/JJ
month/NN
of/IN
expansion/NN
,/,
and/CC
some/DT
economists/NNS
are/VBP
betting/VBG
that/IN
the/DT
boom/NN
will/MD
outlast/VB
the/DT
record/NN
57-month/JJ
expansion/NN
in/IN
the/DT
late/JJ
1960s/NNS
./.
Japanese/JJ
consumers/NNS
are/VBP
increasingly/RB
eager/JJ
to/TO
spend/VB
their/PRP$
money/NN
,/,
especially/RB
on/IN
high-priced/JJ
goods/NNS
such/JJ
as/IN
29-inch/JJ
television/NN
sets/NNS
and/CC
luxury/NN
cars/NNS
./.
Nissan/NNP
Motor/NNP
Co./NNP
's/POS
domestic/JJ
auto/NN
sales/NNS
are/VBP
up/RB
20/CD
%/NN
this/DT
year/NN
largely/RB
because/IN
its/PRP$
expensive/JJ
Cima/NNP
,/,
Sylvia/NNP
and/CC
Cefiro/NNP
models/NNS
are/VBP
in/IN
heavy/JJ
demand/NN
./.
``/``
One/CD
dealer/NN
told/VBD
me/PRP
that/IN
if/IN
he/PRP
had/VBD
more/JJR
cars/NNS
,/,
he/PRP
'd/MD
sell/VB
them/PRP
right/RB
away/RB
,/,
''/''
says/VBZ
Takuro/NNP
Endo/NNP
,/,
Nissan/NNP
executive/NN
vice/NN
president/NN
./.
He/PRP
adds/VBZ
that/IN
the/DT
company/NN
is/VBZ
trying/VBG
to/TO
keep/VB
up/RB
with/IN
demand/NN
``/``
by/IN
overworking/VBG
''/''
its/PRP$
employees/NNS
./.
Similarly/RB
,/,
Honda/NNP
Motor/NNP
Co./NNP
's/POS
sales/NNS
are/VBP
so/RB
brisk/JJ
that/IN
workers/NNS
grumble/VBP
they/PRP
have/VBP
n't/RB
had/VBD
a/DT
Saturday/NNP
off/RP
in/IN
years/NNS
,/,
despite/IN
the/DT
government/NN
's/POS
encouragement/NN
of/IN
more/JJR
leisure/NN
activity/NN
./.
With/IN
demand/NN
growing/VBG
and/CC
workers/NNS
in/IN
short/JJ
supply/NN
,/,
many/JJ
Japanese/JJ
manufacturers/NNS
are/VBP
spending/VBG
heavily/RB
on/IN
automation/NN
./.
Among/IN
them/PRP
are/VBP
the/DT
shipbuilders/NNS
,/,
which/WDT
had/VBD
halved/VBN
their/PRP$
shipyard/NN
work/NN
forces/NNS
to/TO
cut/VB
costs/NNS
during/IN
a/DT
prolonged/JJ
slump/NN
in/IN
demand/NN
but/CC
now/RB
are/VBP
capturing/VBG
an/DT
increased/VBN
share/NN
of/IN
the/DT
strengthening/VBG
global/JJ
market/NN
./.
Sasebo/NNP
Heavy/NNP
Industries/NNPS
Co./NNP
,/,
a/DT
medium-sized/JJ
shipbuilder/NN
,/,
expects/VBZ
its/PRP$
sales/NNS
to/TO
increase/VB
30/CD
%/NN
this/DT
year/NN
,/,
largely/RB
because/IN
of/IN
rising/VBG
demand/NN
for/IN
oil/NN
tankers/NNS
./.
Once/RB
one/CD
Japanese/JJ
company/NN
steps/VBZ
up/RP
its/PRP$
investments/NNS
,/,
the/DT
whole/JJ
industry/NN
follows/VBZ
./.
Because/IN
most/JJS
businesses/NNS
put/VBP
market/NN
share/NN
above/IN
profitability/NN
,/,
to/TO
let/VB
a/DT
competitor/NN
's/POS
addition/NN
to/TO
capacity/NN
go/VB
unmatched/JJ
is/VBZ
to/TO
concede/VB
defeat/NN
./.
The/DT
emphasis/NN
on/IN
market/NN
share/NN
is/VBZ
evident/JJ
at/IN
Daikin/NNP
Industries/NNPS
Ltd./NNP
,/,
Japan/NNP
's/POS
biggest/JJS
maker/NN
of/IN
industrial/JJ
air/NN
conditioners/NNS
./.
Seeing/VBG
new/JJ
office/NN
buildings/NNS
sprout/VBP
up/RB
and/CC
its/PRP$
sales/NNS
soar/VB
,/,
Daikin/NNP
is/VBZ
building/VBG
another/DT
plant/NN
,/,
which/WDT
will/MD
lift/VB
its/PRP$
production/NN
capacity/NN
50/CD
%/NN
./.
The/DT
expansion/NN
is/VBZ
aimed/VBN
not/RB
just/RB
at/IN
meeting/VBG
demand/NN
but/CC
also/RB
at/IN
expanding/VBG
the/DT
company/NN
's/POS
market/NN
share/NN
to/TO
30/CD
%/NN
from/IN
27/CD
%/NN
currently/RB
./.
Besides/IN
,/,
Daikin/NNP
's/POS
major/JJ
competitors/NNS
,/,
Hitachi/NNP
Ltd./NNP
and/CC
Mitsubishi/NNP
Heavy/NNP
Industries/NNPS
Ltd./NNP
,/,
``/``
are/VBP
all/DT
adding/VBG
production/NN
lines/NNS
,/,
''/''
a/DT
Daikin/NNP
spokesman/NN
says/VBZ
./.
``/``
Until/IN
now/RB
,/,
we/PRP
were/VBD
trying/VBG
to/TO
increase/VB
productivity/NN
with/IN
the/DT
facilities/NNS
we/PRP
already/RB
had/VBD
./.
But/CC
we/PRP
ca/MD
n't/RB
produce/VB
enough/JJ
anymore/RB
./.
''/''
The/DT
competition/NN
is/VBZ
even/RB
more/RBR
heated/JJ
in/IN
the/DT
auto/NN
industry/NN
,/,
where/WRB
companies/NNS
are/VBP
racing/VBG
one/CD
another/DT
in/IN
a/DT
world-wide/JJ
market/NN
./.
Nissan/NNP
aims/NNS
to/TO
expand/VB
its/PRP$
25/CD
%/NN
share/NN
of/IN
the/DT
market/NN
to/TO
30/CD
%/NN
by/IN
spending/VBG
$/$
141/CD
million/CD
on/IN
a/DT
plant/NN
in/IN
southern/JJ
Japan/NNP
that/WDT
could/MD
make/VB
as/RB
many/JJ
as/IN
240,000/CD
cars/NNS
a/DT
year/NN
./.
Meanwhile/RB
,/,
Toyota/NNP
Motor/NNP
Corp./NNP
's/POS
$/$
247/CD
million/CD
buildup/NN
is/VBZ
increasing/VBG
its/PRP$
annual/JJ
capacity/NN
by/IN
180,000/CD
cars/NNS
,/,
and/CC
Honda/NNP
is/VBZ
spending/VBG
$/$
317/CD
million/CD
on/IN
expansion/NN
./.
Mazda/NNP
Motor/NNP
Corp./NNP
is/VBZ
still/RB
considering/VBG
its/PRP$
options/NNS
,/,
but/CC
it/PRP
boldly/RB
aims/VBZ
to/TO
double/VB
its/PRP$
annual/JJ
domestic/JJ
sales/NNS
to/TO
800,000/CD
cars/NNS
in/IN
the/DT
next/JJ
four/CD
years/NNS
./.
Those/DT
who/WP
are/VBP
n't/RB
worried/VBN
about/IN
how/WRB
Japanese/JJ
manufacturers/NNS
'/POS
investments/NNS
will/MD
affect/VB
trade/NN
note/VBP
that/IN
many/JJ
new/JJ
products/NNS
are/VBP
n't/RB
replacements/NNS
for/IN
imports/NNS
./.
Although/IN
imports/NNS
account/VBP
for/IN
less/JJR
than/IN
1/CD
%/NN
of/IN
beer/NN
sales/NNS
in/IN
Japan/NNP
,/,
Asahi/NNP
Breweries/NNPS
Ltd./NNP
,/,
which/WDT
has/VBZ
been/VBN
gaining/VBG
share/NN
with/IN
its/PRP$
popular/JJ
dry/JJ
beer/NN
,/,
plans/VBZ
to/TO
fend/VB
off/RP
Japanese/JJ
competitors/NNS
by/IN
pouring/VBG
$/$
1.06/CD
billion/CD
into/IN
facilities/NNS
to/TO
brew/VB
50/CD
%/NN
more/JJR
beer/NN
./.
But/CC
new-product/NN
development/NN
will/MD
make/VB
Japanese/JJ
companies/NNS
stronger/RBR
,/,
and/CC
big/JJ
investments/NNS
in/IN
``/``
domestic/JJ
''/''
industries/NNS
such/JJ
as/IN
beer/NN
will/MD
make/VB
it/PRP
even/RB
tougher/RBR
for/IN
foreign/JJ
competitors/NNS
to/TO
crack/VB
the/DT
Japanese/JJ
market/NN
./.
Moreover/RB
,/,
much/RB
of/IN
the/DT
investment/NN
boom/NN
is/VBZ
in/IN
high-tech/JJ
fields/NNS
in/IN
which/WDT
Japanese/JJ
companies/NNS
have/VBP
only/RB
limited/JJ
foreign/JJ
competition/NN
;/:
so/CC
,/,
more/JJR
investment/NN
practically/RB
assures/VBZ
more/JJR
exports/NNS
./.
Toshiba/NNP
Corp./NNP
,/,
for/IN
example/NN
,/,
is/VBZ
spending/VBG
$/$
986/CD
million/CD
on/IN
two/CD
new/JJ
plants/NNS
to/TO
build/VB
four-megabit/JJ
dynamic/JJ
random/JJ
access/NN
memories/NNS
,/,
the/DT
next/JJ
generation/NN
of/IN
computer/NN
chips/NNS
./.
The/DT
product/NN
is/VBZ
n't/RB
widely/RB
used/VBN
yet/RB
,/,
but/CC
Toshiba/NNP
,/,
which/WDT
has/VBZ
already/RB
beaten/VBN
everyone/NN
else/JJ
in/IN
producing/VBG
the/DT
current-generation/JJ
one-megabit/JJ
DRAMs/NNPS
,/,
believes/VBZ
that/IN
its/PRP$
early/JJ
investment/NN
will/MD
heighten/VB
its/PRP$
chances/NNS
of/IN
beating/VBG
its/PRP$
competitors/NNS
again/RB
./.
``/``
It/PRP
's/VBZ
important/JJ
to/TO
gain/VB
leadership/NN
,/,
''/''
a/DT
Toshiba/NNP
spokesman/NN
says/VBZ
./.
Meanwhile/RB
,/,
Toshiba/NNP
's/POS
Japanese/JJ
rivals/NNS
,/,
Hitachi/NNP
,/,
Fujitsu/NNP
Ltd./NNP
and/CC
NEC/NNP
Corp./NNP
,/,
are/VBP
n't/RB
sitting/VBG
still/RB
./.
After/IN
doubling/VBG
production/NN
in/IN
one/CD
plant/NN
,/,
NEC/NNP
is/VBZ
spending/VBG
$/$
275/CD
million/CD
to/TO
build/VB
another/DT
plant/NN
that/IN
,/,
in/IN
two/CD
years/NNS
,/,
will/MD
be/VB
able/JJ
to/TO
make/VB
a/DT
million/CD
four-megabit/JJ
DRAMs/NNS
a/DT
year/NN
./.
The/DT
new/JJ
chip/NN
plants/NNS
``/``
wo/MD
n't/RB
be/VB
excessive/JJ
investment/NN
,/,
''/''
says/VBZ
Hajime/NNP
Sasaki/NNP
,/,
an/DT
NEC/NNP
vice/NN
president/NN
./.
``/``
We/PRP
have/VBP
enough/JJ
products/NNS
to/TO
make/VB
and/CC
the/DT
markets/NNS
to/TO
sell/VB
these/DT
products/NNS
./.
''/''
Some/DT
of/IN
Japan/NNP
's/POS
goods/NNS
being/VBG
produced/VBN
as/IN
a/DT
result/NN
of/IN
the/DT
investment/NN
boom/NN
are/VBP
already/RB
successful/JJ
overseas/RB
./.
Toyota/NNP
's/POS
$/$
35,000/CD
Lexus/NNP
automobile/NN
,/,
a/DT
luxury/NN
model/NN
that/IN
it/PRP
started/VBD
shipping/VBG
to/TO
the/DT
U.S./NNP
only/JJ
last/JJ
month/NN
,/,
is/VBZ
racking/VBG
up/RP
orders/NNS
at/IN
a/DT
time/NN
when/WRB
U.S.-made/JJ
luxury-car/NN
sales/NNS
are/VBP
slow/JJ
./.
Toyota/NNP
plans/VBZ
to/TO
raise/VB
Lexus/NNP
exports/NNS
when/WRB
a/DT
new/JJ
plant/NN
starts/VBZ
up/RB
next/JJ
year/NN
./.
What/WP
if/IN
its/PRP$
sales/NNS
weaken/VBP
someday/RB
?/.
Japanese/JJ
companies/NNS
have/VBP
a/DT
caveat/NN
competitor/NN
attitude/NN
./.
If/IN
excess/JJ
capacity/NN
develops/VBZ
,/,
they/PRP
say/VBP
,/,
not/RB
everyone/NN
will/MD
suffer/VB
./.
The/DT
losers/NNS
will/MD
be/VB
those/DT
with/IN
the/DT
least/RBS
attractive/JJ
products/NNS
,/,
and/CC
many/JJ
of/IN
them/PRP
,/,
analysts/NNS
think/VBP
,/,
will/MD
be/VB
foreign/JJ
companies/NNS
./.
Benjamin/NNP
Franklin/NNP
Federal/NNP
Savings/NNPS
&/CC
Loan/NNP
Association/NNP
said/VBD
it/PRP
plans/VBZ
to/TO
restructure/VB
in/IN
the/DT
wake/NN
of/IN
a/DT
third-quarter/JJ
loss/NN
of/IN
$/$
7.7/CD
million/CD
,/,
or/CC
$/$
1.01/CD
a/DT
share/NN
,/,
reflecting/VBG
an/DT
$/$
11/CD
million/CD
addition/NN
to/TO
loan-loss/NN
reserves/NNS
./.
The/DT
Portland/NNP
,/,
Ore./NNP
,/,
thrift/NN
said/VBD
the/DT
restructuring/NN
should/MD
help/VB
it/PRP
meet/VB
new/JJ
capital/NN
standards/NNS
from/IN
the/DT
Financial/NNP
Institution/NNP
Reform/NNP
,/,
Recovery/NNP
and/CC
Enforcement/NNP
Act/NNP
./.
A/DT
year/NN
ago/RB
,/,
Benjamin/NNP
Franklin/NNP
had/VBD
profit/NN
of/IN
$/$
1.8/CD
million/CD
,/,
or/CC
23/CD
cents/NNS
a/DT
share/NN
./.
In/IN
over-the-counter/JJ
trading/NN
yesterday/NN
,/,
Benjamin/NNP
Franklin/NNP
rose/VBD
25/CD
cents/NNS
to/TO
$/$
4.25/CD
./.
The/DT
company/NN
said/VBD
the/DT
restructuring/NN
's/POS
initial/JJ
phase/NN
will/MD
feature/VB
a/DT
gradual/JJ
reduction/NN
in/IN
assets/NNS
and/CC
staff/NN
positions/NNS
./.
The/DT
plan/NN
may/MD
include/VB
selling/VBG
branches/NNS
,/,
consolidating/VBG
or/CC
eliminating/VBG
departments/NNS
,/,
and/CC
winding/VBG
down/RP
or/CC
disposing/VBG
of/IN
unprofitable/JJ
units/NNS
within/IN
18/CD
months/NNS
./.
Initially/RB
,/,
the/DT
company/NN
said/VBD
it/PRP
will/MD
close/VB
its/PRP$
commercial/JJ
real-estate/NN
lending/VBG
division/NN
,/,
and/CC
stop/VB
originating/VBG
new/JJ
leases/NNS
at/IN
its/PRP$
commercial/JJ
lease/NN
subsidiary/NN
./.
Details/NNS
of/IN
the/DT
restructuring/NN
wo/MD
n't/RB
be/VB
made/VBN
final/JJ
until/IN
regulators/NNS
approve/VBP
the/DT
regulations/NNS
mandated/VBN
by/IN
the/DT
new/JJ
federal/JJ
act/NN
,/,
the/DT
company/NN
said/VBD
./.
Amdahl/NNP
Corp./NNP
,/,
a/DT
maker/NN
of/IN
mainframe/NN
computers/NNS
,/,
reported/VBD
a/DT
sharp/JJ
decline/NN
in/IN
net/JJ
income/NN
for/IN
its/PRP$
third/JJ
quarter/NN
,/,
citing/VBG
pricecutting/NN
by/IN
competitors/NNS
and/CC
adverse/JJ
effects/NNS
from/IN
a/DT
strong/JJ
U.S./NNP
dollar/NN
./.
Net/JJ
income/NN
fell/VBD
37/CD
%/NN
to/TO
$/$
32.9/CD
million/CD
,/,
or/CC
30/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
52.2/CD
million/CD
,/,
or/CC
48/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
year-ago/JJ
period/NN
./.
Revenue/NN
rose/VBD
15/CD
%/NN
to/TO
$/$
534.3/CD
million/CD
from/IN
$/$
464.7/CD
million/CD
./.
Amdahl/NNP
's/POS
results/NNS
were/VBD
somewhat/RB
worse/JJR
than/IN
expected/VBN
./.
Jay/NNP
Stevens/NNP
,/,
an/DT
analyst/NN
with/IN
Dean/NNP
Witter/NNP
Reynolds/NNP
,/,
said/VBD
he/PRP
expected/VBD
the/DT
Sunnyvale/NNP
,/,
Calif./NNP
,/,
company/NN
to/TO
earn/VB
35/CD
cents/NNS
a/DT
share/NN
for/IN
the/DT
quarter/NN
and/CC
said/VBD
the/DT
firm/NN
's/POS
weaker/JJR
profit/NN
was/VBD
partly/RB
the/DT
result/NN
of/IN
increased/VBN
competition/NN
from/IN
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
,/,
Amdahl/NNP
's/POS
principal/JJ
competitor/NN
for/IN
mainframe/NN
sales/NNS
./.
ONEIDA/NNP
Ltd./NNP
declared/VBD
a/DT
10/CD
%/NN
stock/NN
dividend/NN
,/,
payable/JJ
Dec./NNP
15/CD
to/TO
stock/VB
of/IN
record/NN
Nov./NNP
17/CD
./.
The/DT
Oneida/NNP
,/,
N.Y./NNP
,/,
maker/NN
of/IN
consumer/NN
,/,
food-service/NN
and/CC
industrial/JJ
products/NNS
also/RB
declared/VBD
a/DT
quarterly/JJ
cash/NN
dividend/NN
of/IN
12/CD
cents/NNS
a/DT
share/NN
,/,
with/IN
the/DT
same/JJ
payable/JJ
and/CC
record/NN
dates/NNS
./.
The/DT
cash/NN
dividend/NN
paid/VBN
on/IN
the/DT
common/JJ
stock/NN
also/RB
will/MD
apply/VB
to/TO
the/DT
new/JJ
shares/NNS
,/,
the/DT
company/NN
said/VBD
./.
The/DT
move/NN
rewards/VBZ
shareholders/NNS
and/CC
should/MD
improve/VB
the/DT
stock/NN
's/POS
liquidity/NN
,/,
Oneida/NNP
said/VBD
./.
The/DT
company/NN
has/VBZ
about/IN
8.8/CD
million/CD
shares/NNS
outstanding/JJ
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/NN
trading/NN
yesterday/NN
,/,
Oneida/NNP
's/POS
shares/NNS
closed/VBD
at/IN
$/$
18.375/CD
a/DT
share/NN
,/,
unchanged/JJ
./.
Federal/JJ
health/NN
officials/NNS
are/VBP
expected/VBN
today/NN
to/TO
approve/VB
a/DT
program/NN
granting/VBG
long-deferred/JJ
access/NN
to/TO
the/DT
drug/NN
AZT/NNP
for/IN
children/NNS
with/IN
acquired/VBN
immune/JJ
deficiency/NN
syndrome/NN
./.
Announcement/NN
of/IN
the/DT
approval/NN
is/VBZ
expected/VBN
to/TO
be/VB
made/VBN
by/IN
Louis/NNP
Sullivan/NNP
,/,
secretary/NN
of/IN
Health/NNP
and/CC
Human/NNP
Services/NNPS
./.
The/DT
clearance/NN
by/IN
the/DT
Food/NNP
and/CC
Drug/NNP
Administration/NNP
comes/VBZ
after/IN
two/CD
years/NNS
of/IN
restricted/JJ
access/NN
for/IN
the/DT
youngest/JJS
victims/NNS
of/IN
AIDS/NNP
to/TO
the/DT
only/RB
antiviral/JJ
drug/NN
yet/RB
cleared/VBN
to/TO
treat/VB
the/DT
fatal/JJ
disease/NN
./.
The/DT
drug/NN
will/MD
be/VB
given/VBN
treatment/NN
investigational/JJ
new/JJ
drug/NN
status/NN
,/,
a/DT
label/NN
accorded/VBN
to/TO
drugs/NNS
believed/VBN
effective/JJ
but/CC
lacking/VBG
formal/JJ
approval/NN
./.
The/DT
move/NN
will/MD
make/VB
the/DT
drug/NN
available/JJ
free/JJ
of/IN
charge/NN
for/IN
a/DT
time/NN
to/TO
children/NNS
with/IN
the/DT
disease/NN
and/CC
symptoms/NNS
of/IN
advanced/JJ
infection/NN
./.
Adults/NNS
with/IN
AIDS/NNP
have/VBP
had/VBN
access/NN
to/TO
AZT/NNP
since/IN
FDA/NNP
approved/VBD
the/DT
drug/NN
's/POS
usage/NN
for/IN
adults/NNS
in/IN
March/NNP
1987/CD
./.
But/CC
despite/IN
more/JJR
than/IN
two/CD
years/NNS
of/IN
research/NN
showing/VBG
AZT/NNP
can/MD
relieve/VB
dementia/NN
and/CC
other/JJ
symptoms/NNS
in/IN
children/NNS
,/,
the/DT
drug/NN
still/RB
lacks/VBZ
federal/JJ
approval/NN
for/IN
use/NN
in/IN
the/DT
youngest/JJS
patients/NNS
./.
As/IN
a/DT
result/NN
,/,
many/JJ
youngsters/NNS
have/VBP
been/VBN
unable/JJ
to/TO
obtain/VB
the/DT
drug/NN
and/CC
,/,
for/IN
the/DT
few/JJ
exceptions/NNS
,/,
insurance/NN
carriers/NNS
wo/MD
n't/RB
cover/VB
its/PRP$
cost/NN
of/IN
$/$
6,400/CD
a/DT
year/NN
./.
So/RB
far/RB
,/,
AIDS/NNP
has/VBZ
stricken/VBN
1,859/CD
children/NNS
under/IN
age/NN
13/CD
,/,
with/IN
many/JJ
times/NNS
that/IN
number/NN
believed/VBN
to/TO
carry/VB
the/DT
infection/NN
without/IN
symptoms/NNS
./.
To/TO
date/NN
,/,
1,013/CD
of/IN
those/DT
children/NNS
have/VBP
died/VBN
,/,
according/VBG
to/TO
the/DT
federal/JJ
Centers/NNPS
for/IN
Disease/NNP
Control/NNP
./.
Mothers/NNS
of/IN
young/JJ
AIDS/NNP
patients/NNS
expressed/VBD
somber/JJ
satisfaction/NN
./.
``/``
Thank/VB
goodness/NN
it/PRP
's/VBZ
happening/VBG
./.
It/PRP
should/MD
have/VB
happened/VBD
sooner/RBR
,/,
''/''
said/VBD
Elizabeth/NNP
Glaser/NNP
,/,
a/DT
Los/NNP
Angeles/NNP
mother/NN
and/CC
activist/NN
who/WP
contracted/VBD
the/DT
AIDS/NNP
virus/NN
through/IN
a/DT
blood/NN
transfusion/NN
,/,
and/CC
transmitted/VBD
it/PRP
to/TO
two/CD
of/IN
her/PRP$
children/NNS
./.
One/CD
of/IN
them/PRP
,/,
a/DT
daughter/NN
Ariel/NNP
,/,
died/VBD
a/DT
year/NN
ago/RB
at/IN
age/NN
seven/CD
after/IN
her/PRP$
parents/NNS
unsuccessfully/RB
pleaded/VBD
for/IN
the/DT
drug/NN
./.
``/``
I/PRP
could/MD
get/VB
AZT/NNP
,/,
''/''
says/VBZ
Mrs./NNP
Glaser/NNP
,/,
who/WP
bears/VBZ
her/PRP$
infection/NN
without/IN
any/DT
symptoms/NNS
./.
``/``
But/CC
my/PRP$
daughter/NN
could/MD
n't/RB
,/,
until/IN
she/PRP
was/VBD
too/RB
ill/JJ
to/TO
take/VB
it/PRP
./.
To/TO
watch/VB
your/PRP$
child/NN
die/NN
is/VBZ
an/DT
inhuman/JJ
experience/NN
./.
''/''
Her/PRP$
son/NN
,/,
healthy/JJ
and/CC
symptom-free/JJ
,/,
currently/RB
takes/VBZ
no/DT
medication/NN
./.
The/DT
delay/NN
in/IN
getting/VBG
AZT/NNP
to/TO
children/NNS
has/VBZ
been/VBN
blamed/VBN
on/IN
a/DT
combination/NN
of/IN
factors/NNS
./.
Traditionally/RB
,/,
the/DT
medical/JJ
establishment/NN
has/VBZ
waited/VBN
two/CD
years/NNS
to/TO
approve/VB
adult/NN
treatments/NNS
for/IN
pediatric/JJ
uses/NNS
,/,
because/IN
of/IN
a/DT
combination/NN
of/IN
conservative/JJ
safety/NN
standards/NNS
and/CC
red/JJ
tape/NN
./.
Secondly/RB
,/,
critics/NNS
have/VBP
charged/VBN
AZT/NNP
's/POS
maker/NN
Burroughs/NNP
Wellcome/NNP
Co./NNP
with/IN
corporate/JJ
inertia/NN
because/IN
children/NNS
account/VBP
for/IN
just/RB
1/CD
%/NN
of/IN
the/DT
patient/JJ
population/NN
and/CC
hence/RB
a/DT
small/JJ
part/NN
of/IN
the/DT
large/JJ
and/CC
lucrative/JJ
market/NN
./.
Wellcome/NNP
has/VBZ
replied/VBN
that/IN
it/PRP
is/VBZ
moving/VBG
ahead/RB
to/TO
compile/VB
the/DT
relevant/JJ
data/NN
,/,
and/CC
recently/RB
promised/VBD
to/TO
develop/VB
a/DT
pediatric/JJ
syrup/NN
form/NN
easier/JJR
for/IN
youngsters/NNS
to/TO
take/VB
./.
Still/RB
,/,
all/DT
this/DT
comes/VBZ
nearly/RB
a/DT
year/NN
and/CC
a/DT
half/NN
after/IN
Philip/NNP
Pizzo/NNP
of/IN
the/DT
National/NNP
Cancer/NNP
Institute/NNP
offered/VBD
evidence/NN
that/IN
AZT/NNP
could/MD
reverse/VB
the/DT
ravages/NNS
of/IN
AIDS/NNP
dementia/NN
,/,
sometimes/RB
prompting/VBG
dramatic/JJ
recovery/NN
of/IN
IQ/NNP
levels/NNS
and/CC
reappearance/NN
of/IN
lost/VBN
motor/NN
skills/NNS
./.
Since/IN
then/RB
,/,
roughly/RB
50/CD
pediatric/JJ
patients/NNS
have/VBP
received/VBN
the/DT
drug/NN
in/IN
his/PRP$
program/NN
./.
To/TO
some/DT
mothers/NNS
,/,
the/DT
expected/JJ
FDA/NNP
action/NN
is/VBZ
a/DT
poignant/JJ
reminder/NN
of/IN
what/WP
might/MD
have/VB
been/VBN
./.
``/``
My/PRP$
first/JJ
reaction/NN
is/VBZ
I/PRP
do/VBP
n't/RB
understand/VB
why/WRB
it/PRP
's/VBZ
taken/VBN
so/RB
long/RB
./.
Why/WRB
has/VBZ
it/PRP
taken/VBN
people/NNS
so/RB
long/RB
for/IN
people/NNS
to/TO
understand/VB
pediatric/JJ
AIDS/NNP
is/VBZ
a/DT
major/JJ
problem/NN
?/.
''/''
asked/VBD
Helen/NNP
Kushnick/NNP
,/,
whose/WP$
son/NN
Samuel/NNP
died/VBD
six/CD
years/NNS
ago/RB
at/IN
age/NN
three/CD
,/,
victim/NN
of/IN
a/DT
tainted/JJ
transfusion/NN
./.
Similar/JJ
sentiments/NNS
were/VBD
voiced/VBN
on/IN
Capitol/NNP
Hill/NNP
./.
``/``
While/IN
I/PRP
'm/VBP
pleased/JJ
the/DT
FDA/NNP
is/VBZ
finally/RB
releasing/VBG
AZT/NNP
for/IN
children/NNS
,/,
it/PRP
's/VBZ
taken/VBN
much/RB
too/RB
long/JJ
to/TO
get/VB
to/TO
this/DT
point/NN
,/,
''/''
said/VBD
Rep./NNP
Ted/NNP
Weiss/NNP
./.
``/``
Why/WRB
did/VBD
it/PRP
take/VB
Burroughs/NNP
Wellcome/NNP
so/RB
long/RB
to/TO
apply/VB
''/''
for/IN
treatment/NN
investigational/JJ
new/JJ
drug/NN
status/NN
?/.
the/DT
New/NNP
York/NNP
Democrat/NNP
asked/VBD
./.
``/``
Let/VB
's/PRP
not/RB
forget/VB
this/DT
is/VBZ
the/DT
same/JJ
company/NN
that/WDT
has/VBZ
been/VBN
profiteering/VBG
with/IN
this/DT
drug/NN
for/IN
2/CD
1\/2/CD
years/NNS
,/,
''/''
Mr./NNP
Weiss/NNP
added/VBD
./.
Mrs./NNP
Glaser/NNP
,/,
who/WP
is/VBZ
a/DT
co-founder/NN
of/IN
the/DT
Pediatric/NNP
AIDS/NNP
Foundation/NNP
,/,
based/VBN
in/IN
Santa/NNP
Monica/NNP
,/,
Calif./NNP
,/,
condemned/VBD
neither/CC
bureaucratic/JJ
nor/CC
corporate/JJ
foot-dragging/NN
./.
``/``
There/EX
's/VBZ
no/DT
finger/NN
to/TO
be/VB
pointed/VBN
,/,
''/''
she/PRP
said/VBD
./.
``/``
The/DT
crucial/JJ
thing/NN
is/VBZ
that/IN
we/PRP
learn/VBP
our/PRP$
lesson/NN
well/RB
,/,
and/CC
to/TO
make/VB
sure/JJ
other/JJ
experimental/JJ
drugs/NNS
,/,
like/IN
Bristol-Myers/NNP
Co./NNP
's/POS
DDI/NNP
,/,
do/VBP
n't/RB
follow/VB
the/DT
same/JJ
frustrating/JJ
course/NN
as/IN
AZT/NNP
./.
''/''
AIDS/NNP
dementia/NN
--/:
which/WDT
gradually/RB
steals/VBZ
children/NNS
's/POS
ability/NN
to/TO
speak/VB
,/,
walk/VB
and/CC
think/VB
--/:
is/VBZ
often/RB
the/DT
most/RBS
striking/JJ
aspect/NN
of/IN
the/DT
pediatric/JJ
syndrome/NN
./.
For/IN
some/DT
patients/NNS
,/,
AZT/NNP
has/VBZ
restored/VBN
the/DT
ability/NN
to/TO
ride/VB
a/DT
bicycle/NN
or/CC
solve/VB
puzzles/NNS
,/,
giving/VBG
back/RB
a/DT
piece/NN
of/IN
their/PRP$
childhood/NN
if/IN
only/RB
temporarily/RB
./.
``/``
It/PRP
's/VBZ
impossible/JJ
to/TO
overstate/VB
how/WRB
much/JJ
this/DT
means/VBZ
to/TO
the/DT
families/NNS
of/IN
these/DT
patients/NNS
,/,
''/''
said/VBD
Samuel/NNP
Broder/NNP
,/,
director/NN
of/IN
the/DT
National/NNP
Cancer/NNP
Institute/NNP
and/CC
a/DT
main/JJ
developer/NN
of/IN
AZT/NNP
./.
AVON/NNP
RENT-A-CAR/NNP
&/CC
TRUCK/NNP
Corp./NNP
said/VBD
it/PRP
declared/VBD
a/DT
dividend/NN
of/IN
one/CD
warrant/NN
for/IN
each/DT
three/CD
shares/NNS
of/IN
common/JJ
stock/NN
./.
Currently/RB
,/,
Avon/NNP
,/,
based/VBN
in/IN
Santa/NNP
Monica/NNP
,/,
Calif./NNP
,/,
has/VBZ
3.3/CD
million/CD
common/JJ
shares/NNS
outstanding/JJ
./.
About/IN
1.1/CD
million/CD
Class/NNP
C/NNP
warrants/NNS
were/VBD
issued/VBN
,/,
the/DT
company/NN
said/VBD
./.
Each/DT
of/IN
the/DT
Class/NNP
C/NNP
warrants/NNS
will/MD
enable/VB
the/DT
holders/NNS
to/TO
purchase/VB
one/CD
share/NN
of/IN
common/JJ
stock/NN
at/IN
$/$
5.50/CD
./.
The/DT
warrants/NNS
may/MD
be/VB
exercised/VBN
until/IN
90/CD
days/NNS
after/IN
their/PRP$
issue/NN
date/NN
./.
Avon/NNP
also/RB
said/VBD
it/PRP
will/MD
issue/VB
an/DT
additional/JJ
243,677/CD
of/IN
the/DT
Class/NN
C/NNP
warrants/NNS
to/TO
holders/NNS
of/IN
its/PRP$
Class/NN
A/DT
,/,
Class/NN
B/NNP
and/CC
unclassified/JJ
warrants/NNS
./.
Issuance/NN
of/IN
those/DT
warrants/NNS
will/MD
be/VB
at/IN
the/DT
rate/NN
of/IN
one-third/NN
warrant/NN
for/IN
each/DT
warrant/NN
exercised/VBN
./.
THE/DT
BIG/NNP
BOARD/NNP
PLANS/VBZ
to/TO
launch/VB
its/PRP$
own/JJ
vehicle/NN
for/IN
program/NN
trading/NN
today/NN
amid/IN
growing/VBG
controversy/NN
over/IN
the/DT
practice/NN
./.
The/DT
new/JJ
``/``
baskets/NNS
''/''
of/IN
stocks/NNS
will/MD
allow/VB
big/JJ
investors/NNS
to/TO
buy/VB
or/CC
sell/VB
all/DT
500/CD
S&P/NNP
index/NN
stocks/NNS
in/IN
a/DT
single/JJ
trade/NN
./.
The/DT
exchange/NN
argues/VBZ
that/IN
the/DT
product/NN
,/,
which/WDT
the/DT
SEC/NNP
temporarily/RB
approved/VBD
yesterday/NN
,/,
will/MD
help/VB
ease/NN
rather/RB
than/IN
worsen/VB
any/DT
volatility/NN
in/IN
the/DT
stock/NN
market/NN
./.
SEC/NNP
Chairman/NNP
Breeden/NNP
said/VBD
he/PRP
would/MD
consider/VB
imposing/VBG
``/``
circuit/NN
breakers/NNS
''/''
to/TO
halt/VB
program/NN
trading/NN
during/IN
sharp/JJ
swings/NNS
in/IN
the/DT
market/NN
./.
Kemper/NNP
Financial/NNP
Services/NNPS
has/VBZ
stopped/VBN
executing/VBG
its/PRP$
stock/NN
trades/NNS
through/IN
four/CD
big/JJ
securities/NNS
firms/NNS
because/IN
of/IN
their/PRP$
involvement/NN
in/IN
program/NN
trading/NN
,/,
which/WDT
Kemper/NNP
and/CC
others/NNS
say/VBP
is/VBZ
ruining/VBG
the/DT
market/NN
./.
The/DT
main/JJ
capital-gains/NNS
tax/NN
plan/NN
in/IN
the/DT
Senate/NNP
is/VBZ
n't/RB
winning/VBG
support/NN
from/IN
Democrats/NNPS
who/WP
favor/VBP
a/DT
reduction/NN
./.
The/DT
trend/NN
is/VBZ
making/VBG
proponents/NNS
less/RBR
optimistic/JJ
a/DT
tax/NN
cut/NN
will/MD
pass/VB
./.
Bethlehem/NNP
Steel/NNP
's/POS
profit/NN
plunged/VBD
54/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
hurt/VBN
by/IN
higher/JJR
costs/NNS
and/CC
lower/JJR
shipments/NNS
to/TO
key/JJ
clients/NNS
./.
Also/RB
,/,
Armco/NNP
and/CC
National/NNP
Intergroup/NNP
had/VBD
lower/JJR
operating/NN
profit/NN
in/IN
steel/NN
,/,
marking/VBG
what/WP
may/MD
be/VB
the/DT
end/NN
of/IN
a/DT
two-year/JJ
industry/NN
boom/NN
./.
Columbia/NNP
S&L/NNP
posted/VBD
a/DT
quarterly/JJ
loss/NN
of/IN
$/$
226.3/CD
million/CD
as/IN
the/DT
Beverly/NNP
Hills/NNPS
thrift/NN
reeled/VBD
from/IN
new/JJ
industry/NN
rules/NNS
and/CC
turmoil/NN
in/IN
junk/NN
bonds/NNS
./.
Anheuser-Busch/NNP
plans/VBZ
to/TO
aggressively/RB
discount/VB
its/PRP$
major/JJ
beer/NN
brands/NNS
,/,
setting/VBG
the/DT
stage/NN
for/IN
a/DT
price/NN
war/NN
as/IN
the/DT
beer/NN
industry/NN
's/POS
growth/NN
slows/VBZ
./.
PS/NNP
New/NNP
Hampshire/NNP
received/VBD
a/DT
sweetened/VBN
bid/NN
from/IN
another/DT
suitor/NN
,/,
United/NNP
Illuminating/NNP
,/,
which/WDT
valued/VBD
its/PRP$
new/JJ
proposal/NN
at/IN
$/$
2.29/CD
billion/CD
,/,
apparently/RB
topping/VBG
all/DT
others/NNS
so/RB
far/RB
./.
Financial/JJ
markets/NNS
quieted/VBD
,/,
with/IN
stock/NN
prices/NNS
edging/VBG
lower/RBR
,/,
bonds/NNS
inching/VBG
up/RB
and/CC
the/DT
dollar/NN
almost/RB
unchanged/JJ
./.
The/DT
Dow/NNP
Jones/NNP
industrials/NNS
closed/VBD
off/RB
5.94/CD
points/NNS
,/,
at/IN
2653.28/CD
./.
Fed/NNP
Chairman/NNP
Greenspan/NNP
said/VBD
the/DT
central/JJ
bank/NN
can/MD
wipe/VB
out/RP
inflation/NN
without/IN
causing/VBG
a/DT
recession/NN
,/,
but/CC
doing/VBG
so/RB
will/MD
inflict/VB
short-term/JJ
pain/NN
./.
GM/NNP
's/POS
Hughes/NNP
Electronics/NNPS
unit/NN
said/VBD
profit/NN
slid/VBD
22/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
./.
The/DT
finance/NN
unit/NN
,/,
GMAC/NNP
,/,
said/VBD
net/NN
fell/VBD
3.1/CD
%/NN
,/,
but/CC
EDS/NNP
's/POS
profit/NN
rose/VBD
16/CD
%/NN
./.
Campeau/NNP
reportedly/RB
may/MD
receive/VB
a/DT
$/$
1.3/CD
billion/CD
offer/NN
for/IN
Bloomingdale/NNP
's/POS
from/IN
Tokyu/NNP
Department/NNP
Store/NNP
of/IN
Japan/NNP
./.
Campeau/NNP
declined/VBD
to/TO
comment/VB
./.
UAL/NNP
's/POS
pilots/NNS
and/CC
machinists/NNS
unions/NNS
appear/VBP
to/TO
hold/VB
the/DT
key/NN
to/TO
any/DT
future/JJ
takeover/NN
bid/NN
for/IN
the/DT
airline/NN
./.
Provigo/NNP
plans/VBZ
to/TO
sell/VB
all/DT
non-food/JJ
operations/NNS
to/TO
refocus/VB
on/IN
its/PRP$
retail/NN
and/CC
wholesale/JJ
grocery/NN
business/NN
./.
Also/RB
,/,
Chairman/NNP
Pierre/NNP
Lortie/NNP
resigned/VBD
./.
Westinghouse/NNP
expects/VBZ
operating/VBG
margins/NNS
of/IN
over/IN
10/CD
%/NN
and/CC
sharply/RB
higher/JJR
earnings/NNS
per/IN
share/NN
next/JJ
year/NN
due/JJ
to/TO
a/DT
major/JJ
restructuring/NN
./.
Some/DT
major/JJ
U.S./NNP
trade/NN
partners/NNS
quickly/RB
rejected/VBD
a/DT
compromise/NN
proposal/NN
by/IN
Bush/NNP
to/TO
liberalize/VB
trade/NN
and/CC
reduce/VB
farm-product/NN
subsidies/NNS
./.
Markets/NNS
--/:
Stocks/NNS
:/:
Volume/NN
155,650,000/CD
shares/NNS
./.
Dow/NNP
Jones/NNP
industrials/NNS
2653.28/CD
,/,
off/RB
5.94/CD
;/:
transportation/NN
1199.32/CD
,/,
off/RB
11.38/CD
;/:
utilities/NNS
216.49/CD
,/,
up/RB
1.45/CD
./.
Bonds/NNS
:/:
Shearson/NNP
Lehman/NNP
Hutton/NNP
Treasury/NNP
index/NN
3427.39/CD
,/,
up/RP
Commodities/NNS
:/:
Dow/NNP
Jones/NNP
futures/NNS
index/NN
129.48/CD
,/,
up/RB
0.24/CD
;/:
spot/NN
index/NN
130.73/CD
,/,
off/RB
0.03/CD
./.
Dollar/NN
:/:
141.52/CD
yen/NNS
,/,
up/RB
0.07/CD
;/:
1.8353/CD
marks/NNS
,/,
off/RB
0.0002/CD
./.
GORBACHEV/NNP
SAID/VBD
Moscow/NNP
wo/MD
n't/RB
intervene/VB
in/IN
East/JJ
bloc/NN
moves/NNS
to/TO
democracy/NN
./.
The/DT
Kremlin/NNP
leader/NN
,/,
on/IN
the/DT
first/JJ
day/NN
of/IN
a/DT
three-day/JJ
official/JJ
visit/NN
to/TO
Helsinki/NNP
,/,
assured/VBD
Finland/NNP
's/POS
president/NN
that/IN
the/DT
Soviet/NNP
Union/NNP
has/VBZ
``/``
no/RB
moral/JJ
or/CC
political/JJ
right/NN
''/''
to/TO
interfere/VB
with/IN
moves/NNS
toward/IN
democracy/NN
in/IN
Poland/NNP
,/,
Hungary/NNP
or/CC
elsewhere/RB
in/IN
Eastern/NNP
Europe/NNP
./.
In/IN
Moscow/NNP
,/,
the/DT
Soviet/NNP
State/NNP
Bank/NNP
announced/VBD
a/DT
90/CD
%/NN
devaluation/NN
of/IN
the/DT
ruble/NN
against/IN
the/DT
dollar/NN
for/IN
private/JJ
transactions/NNS
,/,
in/IN
an/DT
apparent/JJ
attempt/NN
to/TO
curb/VB
a/DT
black/JJ
market/NN
for/IN
hard/JJ
currency/NN
./.
The/DT
action/NN
will/MD
establish/VB
a/DT
two-tier/JJ
exchange/NN
rate/NN
./.
Workers/NNS
at/IN
six/CD
mines/NNS
in/IN
Arctic/NNP
Circle/NNP
coal/NN
fields/NNS
called/VBD
strikes/NNS
over/IN
a/DT
series/NN
of/IN
economic/JJ
and/CC
political/JJ
demands/NNS
./.
The/DT
move/NN
defied/VBD
a/DT
law/NN
,/,
approved/VBN
in/IN
Moscow/NNP
this/DT
month/NN
,/,
banning/VBG
such/JJ
walkouts/NNS
./.
THE/DT
HOUSE/NNP
FAILED/VBD
to/TO
override/VB
Bush/NNP
's/POS
veto/NN
of/IN
a/DT
bill/NN
easing/VBG
abortion/NN
funding/NN
./.
The/DT
chamber/NN
voted/VBD
231-191/CD
,/,
51/CD
votes/NNS
short/JJ
of/IN
the/DT
two-thirds/NNS
majority/NN
needed/VBN
to/TO
overturn/VB
the/DT
president/NN
's/POS
veto/NN
of/IN
legislation/NN
renewing/VBG
support/NN
of/IN
Medicaid/NNP
abortions/NNS
for/IN
poor/JJ
women/NNS
who/WP
are/VBP
victims/NNS
of/IN
rape/NN
and/CC
incest/NN
./.
The/DT
roll/NN
call/NN
was/VBD
considered/VBN
an/DT
illustration/NN
of/IN
the/DT
limits/NNS
of/IN
power/NN
that/IN
the/DT
resurgent/JJ
abortion-rights/JJ
movement/NN
faces/VBZ
./.
The/DT
legislation/NN
was/VBD
part/NN
of/IN
a/DT
$/$
156.7/CD
billion/CD
measure/NN
funding/VBG
the/DT
departments/NNS
of/IN
Labor/NNP
,/,
Education/NNP
,/,
and/CC
Health/NNP
./.
Michigan/NNP
's/POS
Senate/NNP
passed/VBD
a/DT
bill/NN
requiring/VBG
girls/NNS
to/TO
get/VB
parental/JJ
consent/NN
for/IN
an/DT
abortion/NN
and/CC
Pennsylvania/NNP
's/POS
House/NNP
cleared/VBD
a/DT
measure/NN
banning/VBG
abortions/NNS
after/IN
the/DT
24th/JJ
week/NN
of/IN
pregnancy/NN
./.
The/DT
FDA/NNP
is/VBZ
expected/VBN
to/TO
approve/VB
today/NN
a/DT
program/NN
granting/VBG
access/NN
free/JJ
of/IN
charge/NN
to/TO
the/DT
drug/NN
AZT/NNP
for/IN
children/NNS
with/IN
AIDS/NNP
./.
Adults/NNS
have/VBP
had/VBD
access/NN
to/TO
the/DT
only/RB
approved/JJ
antiviral/JJ
drug/NN
since/IN
1987/CD
./.
Research/NN
shows/VBZ
AZT/NNP
can/MD
relieve/VB
dementia/NN
and/CC
other/JJ
symptoms/NNS
in/IN
children/NNS
,/,
1,859/CD
of/IN
whom/WP
are/VBP
known/VBN
to/TO
have/VB
been/VBN
infected/VBN
./.
Congress/NNP
sent/VBD
to/TO
Bush/NNP
a/DT
$/$
2.85/CD
billion/CD
emergency/NN
package/NN
to/TO
assist/VB
in/IN
the/DT
recovery/NN
from/IN
last/JJ
week/NN
's/POS
California/NNP
earthquake/NN
and/CC
from/IN
Hurricane/NNP
Hugo/NNP
./.
The/DT
action/NN
came/VBD
after/IN
the/DT
Senate/NNP
approved/VBD
the/DT
House-passed/JJ
measure/NN
./.
In/IN
the/DT
San/NNP
Francisco/NNP
Bay/NNP
area/NN
,/,
more/JJR
than/IN
13,000/CD
people/NNS
were/VBD
homeless/JJ
and/CC
landslides/NNS
threatened/VBD
more/JJR
houses/NNS
./.
House-Senate/JJ
conferees/NNS
agreed/VBD
to/TO
continue/VB
production/NN
of/IN
Grumman/NNP
Corp./NNP
's/POS
F-14/NN
jet/NN
and/CC
to/TO
provide/VB
more/JJR
than/IN
$/$
3.8/CD
billion/CD
during/IN
the/DT
current/JJ
fiscal/JJ
year/NN
to/TO
develop/VB
a/DT
space-based/JJ
anti-missile/JJ
system/NN
./.
The/DT
final/JJ
package/NN
is/VBZ
expected/VBN
to/TO
be/VB
announced/VBN
within/IN
the/DT
next/JJ
week/NN
./.
The/DT
White/NNP
House/NNP
has/VBZ
decided/VBN
to/TO
seek/VB
changes/NNS
in/IN
pesticide/NN
law/NN
that/WDT
are/VBP
aimed/VBN
at/IN
speeding/VBG
the/DT
removal/NN
of/IN
harmful/JJ
chemicals/NNS
from/IN
the/DT
food/NN
supply/NN
./.
The/DT
changes/NNS
,/,
which/WDT
could/MD
be/VB
announced/VBN
as/RB
early/RB
as/IN
today/NN
,/,
would/MD
apply/VB
to/TO
pesticides/NNS
and/CC
other/JJ
substances/NNS
found/VBN
on/IN
fresh/JJ
and/CC
processed/JJ
foods/NNS
,/,
officials/NNS
said/VBD
./.
East/JJ
German/JJ
leader/NN
Krenz/NNP
said/VBD
he/PRP
was/VBD
willing/JJ
to/TO
hold/VB
talks/NNS
with/IN
opposition/NN
groups/NNS
pressing/VBG
for/IN
internal/JJ
changes/NNS
./.
The/DT
Communist/NNP
Party/NNP
chief/NN
,/,
facing/VBG
what/WP
is/VBZ
viewed/VBN
as/IN
the/DT
nation/NN
's/POS
worst/JJS
unrest/NN
in/IN
nearly/RB
40/CD
years/NNS
,/,
also/RB
said/VBD
he/PRP
would/MD
allow/VB
East/NNPS
Germans/NNPS
to/TO
travel/VB
abroad/RB
more/RBR
freely/RB
,/,
but/CC
made/VBD
clear/JJ
that/IN
the/DT
Berlin/NNP
Wall/NNP
would/MD
remain/VB
./.
A/DT
Lebanese/JJ
Christian/JJ
alliance/NN
accepted/VBD
an/DT
Arab-sponsored/JJ
proposal/NN
aimed/VBN
at/IN
ending/VBG
Lebanon/NNP
's/POS
14-year-old/JJ
civil/JJ
war/NN
./.
The/DT
move/NN
by/IN
the/DT
coalition/NN
of/IN
political/JJ
parties/NNS
and/CC
Lebanon/NNP
's/POS
largest/JJS
Christian/JJ
militia/NN
isolated/VBD
military/JJ
chief/JJ
Aoun/NNP
,/,
who/WP
has/VBZ
rejected/VBN
the/DT
plan/NN
,/,
which/WDT
includes/VBZ
political/JJ
changes/NNS
and/CC
a/DT
Syrian/JJ
troop/NN
withdrawal/NN
from/IN
Beirut/NNP
./.
Baker/NNP
offered/VBD
to/TO
review/VB
Israel/NNP
's/POS
``/``
suggested/VBN
changes/NNS
''/''
to/TO
his/PRP$
proposal/NN
for/IN
direct/JJ
Israeli-Palestinian/JJ
talks/NNS
./.
But/CC
the/DT
secretary/NN
of/IN
state/NN
advised/VBD
Israel/NNP
that/IN
attempting/VBG
to/TO
overhaul/VB
the/DT
five-point/JJ
plan/NN
risked/VBD
delaying/VBG
the/DT
negotiations/NNS
aimed/VBN
at/IN
Mideast/NNP
peace/NN
./.
NATO/NNP
defense/NN
ministers/NNS
said/VBD
the/DT
16-nation/JJ
alliance/NN
continues/VBZ
to/TO
need/VB
a/DT
strong/JJ
nuclear/JJ
strategy/NN
despite/IN
political/JJ
changes/NNS
in/IN
Eastern/NNP
Europe/NNP
./.
The/DT
ministers/NNS
,/,
concluding/VBG
a/DT
two-day/JJ
meeting/NN
in/IN
southern/JJ
Portugal/NNP
,/,
welcomed/VBD
Moscow/NNP
's/POS
pledges/NNS
to/TO
cut/VB
its/PRP$
military/JJ
forces/NNS
,/,
but/CC
urged/VBD
the/DT
Soviets/NNPS
to/TO
do/VB
more/JJR
to/TO
slash/VB
short-range/JJ
nuclear/JJ
weapons/NNS
./.
The/DT
Justice/NNP
Department/NNP
indicated/VBD
a/DT
possible/JJ
challenge/NN
to/TO
a/DT
court/NN
order/NN
allowing/VBG
former/JJ
National/NNP
Security/NNP
Adviser/NNP
Poindexter/NNP
to/TO
subpoena/VB
ex-President/NNP
Reagan/NNP
's/POS
personal/JJ
papers/NNS
for/IN
use/NN
in/IN
the/DT
defense/NN
case/NN
against/IN
Iran-Contra/NNP
charges/NNS
./.
A/DT
department/NN
spokesman/NN
said/VBD
the/DT
ruling/NN
``/``
raised/VBD
a/DT
serious/JJ
question/NN
''/''
about/IN
the/DT
office/NN
of/IN
the/DT
president/NN
./.
Bush/NNP
said/VBD
Washington/NNP
would/MD
continue/VB
a/DT
trade/NN
embargo/NN
against/IN
Nicaragua/NNP
,/,
declaring/VBG
that/IN
the/DT
Central/JJ
American/JJ
country/NN
poses/VBZ
``/``
an/DT
unusual/JJ
and/CC
extraordinary/JJ
threat/NN
''/''
to/TO
the/DT
security/NN
of/IN
the/DT
U.S/NNP
./.
Meanwhile/RB
,/,
Secretary/NNP
of/IN
State/NNP
Baker/NNP
said/VBD
the/DT
U.S./NNP
protested/VBD
to/TO
Moscow/NNP
over/IN
shipments/NNS
of/IN
East/JJ
bloc/NN
arms/NNS
to/TO
Salvadoran/JJ
rebels/NNS
from/IN
Managua/NNP
./.
A/DT
landslide/NN
engulfed/VBD
a/DT
hillside/NN
slum/NN
in/IN
Sao/NNP
Paulo/NNP
,/,
Brazil/NNP
,/,
and/CC
at/IN
least/JJS
20/CD
people/NNS
,/,
most/JJS
of/IN
them/DT
children/NNS
,/,
were/VBD
missing/VBG
and/CC
feared/VBN
dead/JJ
./.
The/DT
city/NN
's/POS
mayor/NN
vowed/VBD
to/TO
take/VB
legal/JJ
action/NN
against/IN
developers/NNS
who/WP
had/VBD
been/VBN
excavating/VBG
at/IN
the/DT
crest/NN
of/IN
the/DT
hill/NN
./.
Czechoslovakia/NNP
's/POS
premier/NN
said/VBD
he/PRP
supports/VBZ
broad/JJ
political/JJ
and/CC
economic/JJ
restructuring/NN
,/,
but/CC
ruled/VBD
out/RP
any/DT
dialogue/NN
between/IN
Prague/NNP
's/POS
Communist/JJ
government/NN
and/CC
independent/JJ
human-rights/JJ
or/CC
dissident/JJ
groups/NNS
./.
Ladislav/NNP
Adamec/NNP
,/,
ending/VBG
a/DT
two-day/JJ
visit/NN
to/TO
Austria/NNP
,/,
pledged/VBD
changes/NNS
in/IN
Czechoslovakia/NNP
,/,
including/VBG
freer/JJR
travel/NN
to/TO
the/DT
West/NNP
./.
Died/VBN
:/:
Mary/NNP
McCarthy/NNP
,/,
77/CD
,/,
novelist/NN
and/CC
literary/JJ
critic/NN
,/,
in/IN
New/NNP
York/NNP
City/NNP
,/,
of/IN
cancer/NN
.../:
./.
Marion/NNP
Harper/NNP
,/,
73/CD
,/,
founder/NN
and/CC
ex-chief/JJ
executive/NN
of/IN
Interpublic/NNP
Group/NNP
of/IN
Cos./NNPS
,/,
in/IN
Oklahoma/NNP
City/NNP
,/,
of/IN
a/DT
heart/NN
attack/NN
./.
Adolph/NNP
Coors/NNP
Co./NNP
said/VBD
William/NNP
K./NNP
Coors/NNP
,/,
chairman/NN
,/,
assumed/VBD
the/DT
additional/JJ
responsibilities/NNS
of/IN
president/NN
,/,
succeeding/VBG
Jeffrey/NNP
H./NNP
Coors/NNP
./.
Jeffrey/NNP
Coors/NNP
,/,
44/CD
years/NNS
old/JJ
,/,
had/VBD
been/VBN
president/NN
since/IN
1985/CD
,/,
when/WRB
he/PRP
succeeded/VBD
his/PRP$
father/NN
Joseph/NNP
in/IN
the/DT
job/NN
./.
But/CC
the/DT
brewer/NN
said/VBD
Jeffrey/NNP
Coors/NNP
voluntarily/RB
gave/VBD
up/RP
the/DT
position/NN
to/TO
focus/VB
more/JJR
of/IN
his/PRP$
energy/NN
on/IN
Coors/NNP
Technology/NNP
Co./NNP
,/,
a/DT
small/JJ
unit/NN
of/IN
Coors/NNP
he/PRP
has/VBZ
run/VBN
for/IN
several/JJ
years/NNS
./.
A/DT
Coors/NNP
spokesman/NN
said/VBD
the/DT
company/NN
does/VBZ
n't/RB
believe/VB
the/DT
move/NN
will/MD
further/RBR
increase/VB
William/NNP
Coors/NNP
's/POS
influence/NN
or/CC
reduce/VB
the/DT
influence/NN
of/IN
Jeffrey/NNP
Coors/NNP
,/,
Peter/NNP
Coors/NNP
or/CC
Joseph/NNP
Coors/NNP
Jr./NNP
,/,
who/WP
run/VBP
the/DT
company/NN
's/POS
three/CD
operating/VBG
units/NNS
./.
``/``
It/PRP
certainly/RB
was/VBD
n't/RB
intended/VBN
to/TO
be/VB
a/DT
demotion/NN
,/,
''/''
the/DT
spokesman/NN
said/VBD
./.
``/``
Pete/NNP
and/CC
Jeff/NNP
and/CC
Joe/NNP
Jr./NNP
have/VBP
taken/VBN
over/IN
the/DT
reins/NNS
and/CC
are/VBP
doing/VBG
most/JJS
of/IN
the/DT
work/NN
./.
We/PRP
do/VBP
n't/RB
think/VB
this/DT
will/MD
affect/VB
that/DT
./.
''/''
Jeffrey/NNP
,/,
Peter/NNP
and/CC
Joseph/NNP
Jr./NNP
are/VBP
brothers/NNS
./.
William/NNP
Coors/NNP
is/VBZ
their/PRP$
uncle/NN
./.
Jeffrey/NNP
,/,
Peter/NNP
,/,
Joseph/NNP
Jr./NNP
,/,
William/NNP
and/CC
Joseph/NNP
Sr./NNP
constitute/VBP
the/DT
company/NN
's/POS
board/NN
./.
Peter/NNP
Coors/NNP
runs/VBZ
the/DT
Coors/NNP
Brewing/NNP
Co./NNP
unit/NN
,/,
the/DT
nation/NN
's/POS
fourth-largest/JJ
brewery/NN
that/WDT
accounted/VBD
for/IN
$/$
1.24/CD
billion/CD
of/IN
Adolph/NNP
Coors/NNP
's/POS
$/$
1.52/CD
billion/CD
in/IN
1988/CD
sales/NNS
./.
Joseph/NNP
Jr./NNP
runs/VBZ
Coors/NNP
Ceramics/NNPS
Co./NNP
,/,
the/DT
other/JJ
operating/VBG
unit/NN
,/,
which/WDT
had/VBD
about/IN
$/$
150/CD
million/CD
in/IN
1988/CD
sales/NNS
./.
Dun/NNP
&/CC
Bradstreet/NNP
Corp./NNP
said/VBD
business/NN
failures/NNS
fell/VBD
17.8/CD
%/NN
to/TO
11,586/CD
in/IN
the/DT
third/JJ
quarter/NN
from/IN
14,099/CD
in/IN
the/DT
year-earlier/JJ
period/NN
./.
In/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
this/DT
year/NN
,/,
business/NN
failures/NNS
dropped/VBD
15.6/CD
%/NN
to/TO
37,820/CD
from/IN
44,796/CD
./.
Except/IN
for/IN
a/DT
few/JJ
spots/NNS
,/,
notably/RB
Georgia/NNP
,/,
Virginia/NNP
and/CC
Michigan/NNP
,/,
failures/NNS
declined/VBD
almost/RB
across/IN
the/DT
board/NN
,/,
according/VBG
to/TO
the/DT
business/NN
information/NN
services/NNS
company/NN
./.
D&B/NN
defines/VBZ
a/DT
business/NN
failure/NN
as/IN
a/DT
company/NN
that/WDT
closes/VBZ
with/IN
losses/NNS
to/TO
creditors/NNS
./.
The/DT
current/JJ
decline/NN
in/IN
failures/NNS
continues/VBZ
a/DT
trend/NN
begun/VBN
in/IN
late/JJ
1987/CD
,/,
D&B/NNP
said/VBD
./.
The/DT
drop/NN
accelerated/VBD
in/IN
this/DT
year/NN
's/POS
third/JJ
quarter/NN
,/,
underscoring/VBG
an/DT
overall/JJ
lack/NN
of/IN
stress/NN
in/IN
the/DT
U.S./NNP
economy/NN
,/,
the/DT
company/NN
said/VBD
./.
Failures/NNS
in/IN
seven/CD
of/IN
nine/CD
regional/JJ
areas/NNS
fell/VBD
more/JJR
than/IN
10/CD
%/NN
in/IN
the/DT
nine/CD
months/NNS
./.
The/DT
South/NNP
Atlantic/NNP
States/NNPS
were/VBD
the/DT
only/JJ
region/NN
to/TO
report/VB
an/DT
increase/NN
in/IN
bankruptcies/NNS
,/,
up/RB
5.3/CD
%/NN
to/TO
5,791/CD
from/IN
5,502/CD
./.
This/DT
occurred/VBD
partly/RB
because/IN
of/IN
more/JJR
competition/NN
as/IN
the/DT
number/NN
of/IN
new/JJ
businesses/NNS
surged/VBD
./.
The/DT
only/JJ
industry/NN
sector/NN
to/TO
report/VB
more/JJR
business/NN
failures/NNS
for/IN
the/DT
nine/CD
months/NNS
was/VBD
the/DT
finance/NN
,/,
insurance/NN
and/CC
real-estate/NN
sector/NN
,/,
where/WRB
bankruptcies/NNS
grew/VBD
8.1/CD
%/NN
to/TO
2,046/CD
from/IN
1,892/CD
./.
The/DT
troubled/JJ
savings-and-loan/NN
industry/NN
and/CC
subsequent/JJ
stress/NN
in/IN
real-estate/NN
businesses/NNS
fueled/VBD
bankruptcies/NNS
in/IN
this/DT
sector/NN
,/,
D&B/NNP
said/VBD
./.
A/DT
major/JJ
Tokyo/NNP
newspaper/NN
reported/VBD
that/IN
a/DT
Japanese/JJ
department/NN
store/NN
concern/NN
is/VBZ
planning/VBG
to/TO
offer/VB
about/IN
$/$
1.3/CD
billion/CD
to/TO
buy/VB
Bloomingdale/NNP
's/POS
./.
Campeau/NNP
Corp./NNP
,/,
the/DT
chain/NN
's/POS
owner/NN
,/,
declined/VBD
to/TO
comment/VB
on/IN
the/DT
report/NN
./.
A/DT
spokeswoman/NN
said/VBD
Toronto-based/JJ
Campeau/NNP
has/VBZ
received/VBN
``/``
expressions/NNS
of/IN
interest/NN
''/''
in/IN
Bloomingdale/NNP
's/POS
,/,
but/CC
she/PRP
declined/VBD
to/TO
comment/VB
on/IN
whether/IN
any/DT
actual/JJ
bids/NNS
had/VBD
been/VBN
made/VBN
./.
Nihon/NNP
Keizai/NNP
Shimbun/NNP
,/,
Japan/NNP
's/POS
leading/VBG
economic/JJ
newspaper/NN
,/,
reported/VBD
Wednesday/NNP
that/IN
Tokyu/NNP
Department/NNP
Store/NNP
Co./NNP
is/VBZ
planning/VBG
to/TO
team/VB
up/RB
with/IN
U.S./NNP
and/CC
Western/JJ
European/JJ
financing/NN
to/TO
buy/VB
the/DT
New/NNP
York-based/JJ
retail/JJ
chain/NN
,/,
which/WDT
Campeau/NNP
has/VBZ
put/VBN
up/IN
for/IN
sale/NN
./.
The/DT
service/NN
did/VBD
n't/RB
identify/VB
its/PRP$
Tokyu/NNP
sources/NNS
./.
``/``
This/DT
is/VBZ
the/DT
first/JJ
of/IN
many/JJ
rumors/NNS
we/PRP
expect/VBP
to/TO
hear/VB
during/IN
the/DT
sale/NN
's/POS
process/NN
,/,
''/''
said/VBD
a/DT
Bloomingdale/NNP
's/POS
spokesman/NN
./.
``/``
We/PRP
wo/MD
n't/RB
comment/VB
on/IN
them/PRP
./.
''/''
Tokyu/NNP
executives/NNS
were/VBD
n't/RB
available/JJ
for/IN
comment/NN
early/JJ
Thursday/NNP
morning/NN
in/IN
Tokyo/NNP
./.
Campeau/NNP
's/POS
chairman/NN
,/,
Robert/NNP
Campeau/NNP
,/,
said/VBD
at/IN
its/PRP$
annual/JJ
meeting/NN
in/IN
July/NNP
that/IN
he/PRP
valued/VBD
Bloomingdale/NNP
's/POS
at/IN
$/$
2/CD
billion/CD
./.
Among/IN
previously/RB
disclosed/VBN
possible/JJ
bidders/NNS
is/VBZ
Bloomingdale/NNP
's/POS
Chairman/NNP
Marvin/NNP
Traub/NNP
,/,
who/WP
has/VBZ
aligned/VBN
himself/PRP
with/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
and/CC
Blackstone/NNP
Group/NNP
./.
Investment/NN
bankers/NNS
in/IN
Tokyo/NNP
confirmed/VBD
that/IN
Tokyu/NNP
Department/NNP
Store/NNP
is/VBZ
one/CD
of/IN
several/JJ
Japanese/JJ
companies/NNS
that/WDT
has/VBZ
been/VBN
approached/VBN
by/IN
representatives/NNS
of/IN
a/DT
management/NN
committee/NN
headed/VBN
by/IN
Bloomingdale/NNP
's/POS
Mr./NNP
Traub/NNP
./.
But/CC
they/PRP
said/VBD
detailed/JJ
financial/JJ
figures/NNS
have/VBP
n't/RB
been/VBN
passed/VBN
yet/RB
to/TO
any/DT
prospective/JJ
buyers/NNS
./.
``/``
Nobody/NN
is/VBZ
going/VBG
to/TO
make/VB
a/DT
real/JJ
bid/NN
before/IN
the/DT
middle/NN
of/IN
November/NNP
,/,
''/''
said/VBD
one/CD
investment/NN
banker/NN
familiar/JJ
with/IN
the/DT
discussions/NNS
in/IN
Japan/NNP
./.
``/``
Tokyu/NNP
is/VBZ
one/CD
of/IN
the/DT
potential/JJ
buyers/NNS
who/WP
might/MD
raise/VB
its/PRP$
hand/NN
./.
But/CC
it/PRP
's/VBZ
in/IN
very/RB
early/JJ
stages/NNS
still/RB
./.
''/''
Bloomingdale/NNP
's/POS
is/VBZ
a/DT
17-store/JJ
chain/NN
acquired/VBD
last/JJ
year/NN
by/IN
Campeau/NNP
in/IN
its/PRP$
$/$
6.6/CD
billion/CD
acquisition/NN
of/IN
Federated/NNP
./.
Bloomingdale/NNP
's/POS
does/VBZ
an/DT
estimated/VBN
$/$
1.2/CD
billion/CD
in/IN
annual/JJ
sales/NNS
./.
The/DT
sale/NN
of/IN
Bloomingdale/NNP
's/POS
is/VBZ
a/DT
condition/NN
of/IN
efforts/NNS
by/IN
Toronto-based/JJ
Olympia/NNP
&/CC
York/NNP
Developments/NNPS
Ltd./NNP
to/TO
arrange/VB
$/$
800/CD
million/CD
in/IN
bridge/NN
financing/NN
for/IN
Campeau/NNP
,/,
which/WDT
disclosed/VBD
last/JJ
month/NN
that/IN
its/PRP$
retailing/VBG
units/NNS
,/,
Federated/NNP
Department/NNP
Stores/NNPS
Inc./NNP
and/CC
Allied/NNP
Stores/NNPS
Corp./NNP
,/,
were/VBD
strapped/VBN
for/IN
cash/NN
./.
O&Y/NNP
,/,
owned/VBN
by/IN
Toronto/NNP
's/POS
Reichmann/NNP
family/NN
,/,
is/VBZ
also/RB
supervising/VBG
major/JJ
restructuring/NN
and/CC
refinancing/NN
of/IN
Campeau/NNP
,/,
a/DT
Toronto-based/JJ
real/JJ
estate/NN
and/CC
retailing/NN
company/NN
./.
One/CD
executive/NN
familiar/JJ
with/IN
the/DT
Bloomingdale/NNP
's/POS
situation/NN
said/VBD
,/,
``/``
No/DT
book/NN
has/VBZ
been/VBN
issued/VBN
regarding/VBG
Bloomingdale/NNP
's/POS
,/,
there/EX
are/VBP
no/DT
projections/NNS
,/,
so/RB
I/PRP
doubt/VBP
very/RB
much/RB
whether/IN
any/DT
bid/NN
has/VBZ
been/VBN
made/VBN
./.
''/''
Separately/RB
,/,
a/DT
Campeau/NNP
shareholder/NN
filed/VBD
suit/NN
,/,
charging/VBG
Campeau/NNP
,/,
Chairman/NNP
Robert/NNP
Campeau/NNP
and/CC
other/JJ
officers/NNS
with/IN
violating/VBG
securities/NNS
law/NN
./.
The/DT
suit/NN
,/,
filed/VBN
in/IN
U.S./NNP
District/NNP
Court/NNP
in/IN
Manhattan/NNP
,/,
seeks/VBZ
class-action/NN
status/NN
./.
The/DT
suit/NN
accuses/VBZ
the/DT
retailer/NN
and/CC
several/JJ
of/IN
its/PRP$
officers/NNS
of/IN
making/VBG
false/JJ
and/CC
misleading/JJ
statements/NNS
about/IN
the/DT
company/NN
's/POS
business/NN
affairs/NNS
./.
The/DT
suit/NN
says/VBZ
the/DT
company/NN
failed/VBD
to/TO
disclose/VB
material/JJ
adverse/JJ
information/NN
about/IN
its/PRP$
financial/JJ
condition/NN
./.
A/DT
spokesman/NN
for/IN
the/DT
company/NN
said/VBD
Campeau/NNP
has/VBZ
n't/RB
seen/VBN
the/DT
suit/NN
and/CC
declined/VBD
to/TO
comment/VB
./.
McCaw/NNP
Cellular/NNP
Communications/NNPS
Inc./NNP
must/MD
extend/VB
its/PRP$
offer/NN
for/IN
LIN/NNP
Broadcasting/NNP
Corp./NNP
because/IN
it/PRP
has/VBZ
``/``
not/RB
yet/RB
announced/VBN
committed/JJ
financing/NN
sufficient/JJ
to/TO
complete/VB
''/''
the/DT
bid/NN
,/,
LIN/NNP
said/VBD
in/IN
New/NNP
York/NNP
./.
According/VBG
to/TO
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
rules/NNS
,/,
McCaw/NNP
is/VBZ
required/VBN
to/TO
keep/VB
its/PRP$
offer/NN
for/IN
the/DT
cellular-phone/NN
and/CC
broadcasting/NN
concern/NN
open/JJ
for/IN
at/IN
least/JJS
five/CD
business/NN
days/NNS
after/IN
the/DT
announcement/NN
of/IN
the/DT
financing/NN
,/,
LIN/NNP
said/VBD
./.
McCaw/NNP
's/POS
offer/NN
is/VBZ
scheduled/VBN
to/TO
expire/VB
tomorrow/NN
./.
Last/JJ
week/NN
,/,
McCaw/NNP
said/VBD
it/PRP
obtained/VBD
``/``
firm/JJ
''/''
financing/VBG
commitments/NNS
from/IN
three/CD
major/JJ
banks/NNS
in/IN
regard/NN
to/TO
its/PRP$
bid/NN
to/TO
control/VB
LIN/NNP
Broadcasting/NNP
./.
The/DT
banks/NNS
jointly/RB
committed/VBD
$/$
1.2/CD
billion/CD
of/IN
financing/NN
,/,
subject/JJ
to/TO
certain/JJ
conditions/NNS
,/,
McCaw/NNP
said/VBD
./.
A/DT
spokesman/NN
for/IN
McCaw/NN
said/VBD
the/DT
company/NN
was/VBD
``/``
moving/VBG
forward/RB
with/IN
our/PRP$
financing/NN
./.
''/''
He/PRP
added/VBD
that/IN
``/``
hopefully/RB
LIN/NNP
will/MD
conduct/VB
a/DT
fair/JJ
auction/NN
./.
''/''
McCaw/NNP
wants/VBZ
to/TO
buy/VB
22/CD
million/CD
shares/NNS
of/IN
LIN/NNP
for/IN
$/$
125/CD
each/DT
,/,
or/CC
$/$
2.75/CD
billion/CD
,/,
which/WDT
would/MD
result/VB
in/IN
McCaw/NNP
's/POS
owning/VBG
50.3/CD
%/NN
of/IN
LIN/NNP
./.
The/DT
offer/NN
is/VBZ
in/IN
limbo/NN
,/,
however/RB
,/,
because/IN
LIN/NNP
has/VBZ
agreed/VBN
to/TO
merge/VB
its/PRP$
cellular-phone/NN
businesses/NNS
with/IN
BellSouth/NNP
Corp/NNP
./.
In/IN
national/JJ
over-the-counter/JJ
trading/NN
yesterday/NN
,/,
LIN/NNP
rose/VBD
50/CD
cents/NNS
,/,
to/TO
$/$
109.25/CD
./.
NICHOLS/NNP
INSTITUTE/NNP
declared/VBD
a/DT
2-for-1/JJ
split/NN
of/IN
its/PRP$
common/JJ
stock/NN
,/,
payable/JJ
Nov./NNP
27/CD
to/TO
stock/VB
of/IN
record/NN
Nov./NNP
10/CD
./.
The/DT
clinical/JJ
testing/NN
services/NNS
holding/VBG
company/NN
is/VBZ
based/VBN
in/IN
San/NNP
Juan/NNP
Capistrano/NNP
,/,
Calif/NNP
./.
StatesWest/NNP
Airlines/NNPS
,/,
Phoenix/NNP
,/,
Ariz./NNP
,/,
said/VBD
it/PRP
sent/VBD
a/DT
more/RBR
detailed/JJ
merger/NN
proposal/NN
to/TO
much-larger/JJ
Mesa/NNP
Airlines/NNPS
./.
Farmington/NNP
,/,
N.M.-based/JJ
Mesa/NNP
has/VBZ
consistently/RB
rejected/VBN
StatesWest/NNP
's/POS
offers/NNS
,/,
and/CC
early/RB
this/DT
week/NN
said/VBD
its/PRP$
board/NN
would/MD
n't/RB
give/VB
the/DT
proposal/NN
further/JJ
consideration/NN
,/,
calling/VBG
it/PRP
``/``
vague/JJ
and/CC
ill-defined/JJ
''/''
because/IN
it/PRP
did/VBD
n't/RB
describe/VB
the/DT
source/NN
of/IN
funds/NNS
or/CC
the/DT
specific/JJ
terms/NNS
of/IN
StatesWest/NNP
securities/NNS
which/WDT
were/VBD
part/NN
of/IN
the/DT
offer/NN
./.
The/DT
new/JJ
letter/NN
purports/VBZ
to/TO
do/VB
this/DT
,/,
saying/VBG
that/IN
in/IN
addition/NN
to/TO
$/$
7/CD
a/DT
share/NN
in/IN
cash/NN
,/,
StatesWest/NNP
would/MD
offer/VB
one/CD
share/NN
of/IN
new/JJ
6/CD
%/NN
convertible/NN
preferred/JJ
stock/NN
of/IN
StatesWest/NNP
it/PRP
values/VBZ
at/IN
$/$
3/CD
a/DT
share/NN
./.
It/PRP
also/RB
said/VBD
the/DT
cash/NN
portion/NN
of/IN
the/DT
transaction/NN
would/MD
be/VB
financed/VBN
with/IN
StatesWest/NNP
's/POS
own/JJ
cash/NN
and/CC
short-term/JJ
investments/NNS
,/,
plus/CC
debt/NN
and/CC
other/JJ
financing/NN
arranged/VBN
through/IN
Hibbard/NNP
Brown/NNP
&/CC
Co./NNP
,/,
the/DT
company/NN
's/POS
investment/NN
banker/NN
./.
In/IN
national/JJ
over-the-counter/JJ
trading/NN
yesterday/NN
,/,
Mesa/NNP
closed/VBD
at/IN
$/$
7.25/CD
,/,
up/RB
25/CD
cents/NNS
./.
StatesWest/NNP
asked/VBD
Mesa/NNP
to/TO
repond/VB
by/IN
Oct./NNP
31/CD
./.
Mesa/NNP
President/NNP
Larry/NNP
Risley/NNP
said/VBD
his/PRP$
board/NN
had/VBD
received/VBN
Stateswest/NNP
's/POS
most/RBS
recent/JJ
offer/NN
and/CC
was/VBD
reviewing/VBG
it/PRP
./.
Spiegel/NNP
Inc./NNP
,/,
citing/VBG
continuing/VBG
improvement/NN
in/IN
the/DT
apparel/NN
market/NN
,/,
said/VBD
third-quarter/JJ
net/JJ
income/NN
jumped/VBD
65/CD
%/NN
from/IN
the/DT
soft/JJ
year-earlier/JJ
period/NN
,/,
on/IN
an/DT
11/CD
%/NN
increase/NN
in/IN
revenue/NN
./.
The/DT
catalog/NN
retailer/NN
reported/VBD
net/JJ
income/NN
of/IN
$/$
10.8/CD
million/CD
,/,
or/CC
21/CD
cents/NNS
a/DT
share/NN
,/,
up/RB
sharply/RB
from/IN
$/$
6.6/CD
million/CD
,/,
or/CC
13/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
./.
Revenue/NN
rose/VBD
to/TO
$/$
372.1/CD
million/CD
from/IN
$/$
336.4/CD
million/CD
./.
Spiegel/NNP
said/VBD
margins/NNS
improved/VBN
because/IN
its/PRP$
inventory/NN
position/NN
this/DT
year/NN
did/VBD
n't/RB
need/VB
the/DT
costly/JJ
markdowns/NNS
required/VBN
to/TO
trim/VB
last/JJ
year/NN
's/POS
swollen/JJ
levels/NNS
./.
A/DT
spokeswoman/NN
said/VBD
the/DT
apparel/NN
market/NN
troughed/VBD
in/IN
the/DT
first/JJ
half/NN
of/IN
1988/CD
,/,
then/RB
began/VBD
showing/VBG
improvement/NN
in/IN
the/DT
second/JJ
half/NN
of/IN
last/JJ
year/NN
./.
``/``
We/PRP
've/VBP
seen/VBN
continued/JJ
improvement/NN
in/IN
1989/CD
,/,
''/''
she/PRP
said/VBD
./.
The/DT
year-ago/JJ
quarter/NN
's/POS
results/NNS
were/VBD
crimped/JJ
by/IN
expenses/NNS
associated/JJ
with/IN
Spiegel/NNP
's/POS
$/$
260/CD
million/CD
acquisition/NN
of/IN
catalog-clothing-merchandiser/NN
Eddie/NNP
Bauer/NNP
,/,
Spiegel/NNP
noted/VBD
./.
In/IN
addition/NN
,/,
the/DT
company/NN
said/VBD
ongoing/JJ
cost-cutting/NN
efforts/NNS
contributed/VBD
to/TO
the/DT
latest/JJS
period/NN
's/POS
earnings/NNS
upturn/NN
./.
Spiegel/NNP
is/VBZ
84%-controlled/JJ
by/IN
the/DT
Otto/NNP
family/NN
of/IN
West/NNP
Germany/NNP
./.
In/IN
national/JJ
over-the-counter/JJ
trading/NN
,/,
the/DT
company/NN
's/POS
shares/NNS
climbed/VBD
37.5/CD
cents/NNS
to/TO
$/$
20.375/CD
./.
For/IN
the/DT
latest/JJS
nine/CD
months/NNS
,/,
Spiegel/NNP
's/POS
net/NN
climbed/VBD
a/DT
solid/JJ
47/CD
%/NN
to/TO
$/$
23.8/CD
million/CD
,/,
or/CC
46/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
16.2/CD
million/CD
,/,
or/CC
34/CD
cents/NNS
./.
Unlike/IN
the/DT
quarter/NN
's/POS
results/NNS
,/,
which/WDT
were/VBD
based/VBN
on/IN
roughly/RB
equal/JJ
shares/NNS
outstanding/JJ
,/,
nine-month/JJ
per-share/JJ
figures/NNS
reflect/VBP
an/DT
increase/NN
in/IN
average/JJ
common/JJ
shares/NNS
outstanding/JJ
to/TO
51.9/CD
million/CD
from/IN
47/CD
million/CD
./.
Nine-month/JJ
revenue/NN
was/VBD
$/$
1.02/CD
billion/CD
,/,
up/RB
22/CD
%/NN
from/IN
$/$
841.5/CD
million/CD
./.
The/DT
bad/JJ
news/NN
in/IN
the/DT
junk/NN
bond/NN
market/NN
yesterday/RB
was/VBD
that/IN
TW/NNP
Services/NNPS
,/,
a/DT
group/NN
of/IN
restaurant/NN
chains/NNS
,/,
became/VBD
the/DT
latest/JJS
prospective/JJ
issuer/NN
to/TO
get/VB
a/DT
cold/JJ
shoulder/NN
from/IN
bond/NN
buyers/NNS
./.
The/DT
good/JJ
news/NN
--/:
to/TO
fans/NNS
of/IN
stable/JJ
credit/NN
,/,
at/IN
least/JJS
--/:
is/VBZ
what/WP
the/DT
rejection/NN
says/VBZ
about/IN
the/DT
state/NN
of/IN
mind/NN
of/IN
junk/NN
buyers/NNS
./.
Apparently/RB
they/PRP
are/VBP
learning/VBG
to/TO
say/VB
no/UH
to/TO
excess/JJ
risk/NN
./.
Coniston/NNP
Partners/NNPS
,/,
which/WDT
with/IN
related/JJ
entities/NNS
controls/VBZ
80/CD
%/NN
of/IN
TW/NNP
,/,
had/VBD
been/VBN
planning/VBG
to/TO
sell/VB
$/$
1.15/CD
billion/CD
of/IN
junk/NN
bonds/NNS
,/,
among/IN
other/JJ
things/NNS
to/TO
finance/VB
their/PRP$
acquisition/NN
of/IN
the/DT
remaining/VBG
public/JJ
shares/NNS
./.
But/CC
Coniston/NNP
,/,
a/DT
New/NNP
York/NNP
partnership/NN
managed/VBN
by/IN
the/DT
firm/NN
of/IN
Gollust/NNP
,/,
Tierney/NNP
&/CC
Oliver/NNP
,/,
yesterday/NN
announced/VBD
that/IN
``/``
in/IN
view/NN
of/IN
unsettled/JJ
conditions/NNS
in/IN
securities/NNS
markets/NNS
''/''
the/DT
offering/NN
would/MD
be/VB
postponed/VBN
and/CC
restructured/VBN
./.
What/WP
was/VBD
n't/RB
mentioned/VBN
is/VBZ
that/IN
Coniston/NNP
and/CC
its/PRP$
investment/NN
banker/NN
,/,
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
,/,
just/RB
completed/VBN
a/DT
two-week/JJ
``/``
road/NN
show/NN
''/''
for/IN
the/DT
purpose/NN
of/IN
marketing/VBG
the/DT
bonds/NNS
./.
And/CC
investors/NNS
,/,
at/IN
least/JJS
for/IN
now/RB
,/,
took/VBD
a/DT
pass/NN
./.
TW/NNP
's/POS
junk/NN
bonds/NNS
were/VBD
n't/RB
,/,
as/IN
junk/NN
bonds/NNS
go/VB
,/,
unusually/RB
weak/JJ
./.
Its/PRP$
fast-food/NN
restaurants/NNS
--/:
including/VBG
Denny/NNP
's/POS
,/,
Hardee/NNP
's/POS
,/,
Quincy/NNP
's/POS
and/CC
El/NNP
Pollo/NNP
Loco/NNP
``/``
the/NN
only/JJ
significant/JJ
fast-food/NN
chain/NN
to/TO
specialize/VB
in/IN
char-broiled/JJ
chicken/NN
''/''
)/)
--/:
are/VBP
stable/JJ
,/,
recession-resistant/JJ
and/CC
growing/VBG
./.
But/CC
unless/IN
they/PRP
continued/VBD
to/TO
grow/VB
,/,
TW/NNP
,/,
based/VBN
in/IN
Paramus/NNP
,/,
N.J./NNP
,/,
would/MD
have/VB
run/VBN
into/IN
trouble/NN
./.
Until/IN
recently/RB
,/,
such/JJ
buy-now/JJ
,/,
pray-for-growth-later/JJ
deals/NNS
were/VBD
routine/JJ
./.
``/``
But/CC
people/NNS
do/VBP
n't/RB
buy/VB
anything/NN
on/IN
expectation/NN
anymore/RB
,/,
''/''
says/VBZ
Jack/NNP
Utter/NNP
,/,
who/WP
manages/VBZ
the/DT
high-yield/JJ
fund/NN
of/IN
IDS/NNP
Financial/NNP
Services/NNPS
./.
``/``
Investors/NNS
,/,
''/''
he/PRP
adds/VBZ
,/,
``/``
are/VBP
getting/VBG
religion/NN
./.
''/''
The/DT
TW/NNP
buy-out/NN
may/MD
yet/RB
be/VB
financed/VBN
./.
``/``
There/EX
is/VBZ
nothing/NN
wrong/JJ
with/IN
the/DT
company/NN
,/,
''/''
says/VBZ
Coniston/NN
principal/NN
Paul/NNP
Tierney/NNP
./.
The/DT
rub/NN
,/,
he/PRP
says/VBZ
,/,
is/VBZ
that/IN
``/``
the/DT
junk/NN
market/NN
is/VBZ
n't/RB
as/RB
deep/JJ
''/''
as/IN
before/RB
./.
TW/NNP
's/POS
stockholder/NN
meeting/NN
was/VBD
postponed/VBN
from/IN
tomorrow/NN
to/TO
Nov./NNP
21/CD
./.
By/IN
then/RB
,/,
DLJ/NNP
hopes/VBZ
to/TO
be/VB
able/JJ
to/TO
sell/VB
less-junky/JJR
junk/NN
bonds/NNS
./.
Gollust/NNP
,/,
Tierney/NNP
&/CC
Oliver/NNP
is/VBZ
likely/JJ
to/TO
contribute/VB
more/JJR
than/IN
the/DT
$/$
120/CD
million/CD
in/IN
equity/NN
it/PRP
had/VBD
planned/VBN
on/RB
./.
Banks/NNS
may/MD
contribute/VB
more/JJR
senior/JJ
debt/NN
./.
And/CC
the/DT
total/JJ
amount/NN
of/IN
junk/NN
financing/NN
will/MD
be/VB
reduced/VBN
./.
A/DT
DLJ/NNP
banker/NN
,/,
putting/VBG
a/DT
best/JJS
possible/JJ
face/NN
on/IN
it/PRP
,/,
asserts/VBZ
that/IN
``/``
very/RB
few/JJ
people/NNS
said/VBD
they/PRP
did/VBD
n't/RB
like/IN
the/DT
credit/NN
quality/NN
./.
People/NNS
said/VBD
they/PRP
did/VBD
n't/RB
think/VB
a/DT
billion-dollar/JJ
deal/NN
would/MD
trade/VB
./.
''/''
But/CC
trading/NN
risk/NN
stems/VBZ
from/IN
credit/NN
risk/NN
./.
And/CC
by/IN
adding/VBG
equity/NN
,/,
DLJ/NNP
would/MD
seem/VB
to/TO
be/VB
acknowledging/VBG
that/DT
credit/NN
risk/NN
was/VBD
a/DT
concern/NN
./.
Indeed/RB
,/,
the/DT
DLJ/NNP
banker/NN
says/VBZ
,/,
in/IN
the/DT
reborn/JJ
capital/NN
structure/NN
cash/NN
coverage/NN
of/IN
interest/NN
``/``
will/MD
meaningfully/RB
improve/VB
./.
''/''
As/IN
he/PRP
sums/VBZ
it/PRP
up/RP
:/:
``/``
We/PRP
are/VBP
listening/VBG
to/TO
the/DT
market/NN
./.
''/''
What/WP
is/VBZ
it/PRP
,/,
to/TO
borrow/VB
a/DT
term/NN
from/IN
Coniston/NNP
,/,
that/WDT
so/RB
unsettled/VBD
the/DT
market/NN
?/.
Some/DT
of/IN
the/DT
same/JJ
risks/NNS
that/WDT
were/VBD
cited/VBN
--/:
and/CC
seemingly/RB
ignored/VBN
--/:
in/IN
dozens/NNS
of/IN
previous/JJ
junk/NN
offerings/NNS
./.
The/DT
TW/NNP
prospectus/NN
says/VBZ
that/IN
if/IN
the/DT
acquisition/NN
had/VBD
been/VBN
completed/VBN
earlier/RBR
,/,
pretax/JJ
earnings/NNS
``/``
would/MD
have/VB
been/VBN
insufficient/JJ
to/TO
cover/VB
its/PRP$
fixed/JJ
charges/NNS
,/,
including/VBG
interest/NN
on/IN
debt/NN
securities/NNS
,/,
''/''
by/IN
approximately/RB
$/$
62.7/CD
million/CD
in/IN
the/DT
first/JJ
six/CD
months/NNS
of/IN
1989/CD
./.
TW/NNP
notes/VBZ
,/,
as/IN
many/JJ
junk/NN
issuers/NNS
do/VBP
,/,
that/IN
``/``
adjusted/VBN
to/TO
eliminate/VB
non-cash/JJ
charges/NNS
''/''
TW/NNP
would/MD
have/VB
run/VBN
a/DT
cash/NN
surplus/NN
--/:
in/IN
this/DT
case/NN
,/,
of/IN
$/$
56/CD
million/CD
over/IN
six/CD
months/NNS
./.
But/CC
such/JJ
calculations/NNS
ignore/VBP
the/DT
noncash/JJ
charge/NN
of/IN
depreciation/NN
,/,
taken/VBN
to/TO
allow/VB
for/IN
the/DT
gradual/JJ
wearing/VBG
out/RB
of/IN
french/JJ
friers/NNS
,/,
deterioration/NN
of/IN
stores/NNS
and/CC
the/DT
like/JJ
./.
In/IN
fact/NN
,/,
DLJ/NNP
says/VBZ
,/,
the/DT
company/NN
envisions/VBZ
capital/NN
expenses/NNS
of/IN
about/IN
$/$
180/CD
million/CD
a/DT
year/NN
./.
TW/NNP
's/POS
pitch/NN
was/VBD
that/IN
sales/NNS
and/CC
earnings/NNS
at/IN
its/PRP$
restaurants/NNS
have/VBP
risen/VBN
steadily/RB
and/CC
that/IN
people/NNS
wo/MD
n't/RB
stop/VB
eating/VBG
during/IN
a/DT
downturn/NN
./.
But/CC
they/PRP
wo/MD
n't/RB
necessarily/RB
eat/VB
at/IN
Denny/NNP
's/POS
./.
The/DT
fast-food/JJ
business/NN
is/VBZ
``/``
intensely/RB
competitive/JJ
,/,
''/''
notes/VBZ
Wertheim/NNP
Schroder/NNP
analyst/NN
John/NNP
Rohs/NNP
./.
Prospective/JJ
bond/NN
buyers/NNS
noted/VBD
that/IN
TW/NNP
historically/RB
has/VBZ
prospered/VBN
because/IN
it/PRP
has/VBZ
been/VBN
willing/JJ
to/TO
spend/VB
aggressively/RB
on/IN
remodeling/VBG
restaurants/NNS
and/CC
redoing/VBG
menus/NNS
./.
``/``
We/PRP
were/VBD
concerned/VBN
that/IN
they/PRP
were/VBD
n't/RB
going/VBG
to/TO
generate/VB
enough/JJ
cash/NN
for/IN
capital/NN
spending/NN
and/CC
also/RB
to/TO
pay/VB
down/RP
debt/NN
,/,
''/''
says/VBZ
a/DT
big/JJ
investor/NN
in/IN
high-yield/JJ
debt/NN
./.
DLJ/NNP
argues/VBZ
that/IN
TW/NNP
could/MD
,/,
if/IN
necessary/JJ
,/,
cut/VB
capital/NN
spending/NN
,/,
since/IN
half/NN
of/IN
what/WP
it/PRP
plans/VBZ
to/TO
spend/VB
is/VBZ
for/IN
``/``
growth/NN
,/,
''/''
rather/RB
than/IN
maintenance/NN
./.
But/CC
investors/NNS
noted/VBD
that/IN
under/IN
the/DT
shelved/JJ
offering/NN
,/,
TW/NNP
would/MD
have/VB
needed/VBN
to/TO
grow/VB
to/TO
meet/VB
its/PRP$
debt/NN
payments/NNS
./.
Its/PRP$
calculations/NNS
for/IN
meeting/VBG
cash/NN
charges/NNS
ignore/VBP
$/$
52/CD
million/CD
a/DT
year/NN
in/IN
interest/NN
on/IN
cash-deferred/JJ
,/,
or/CC
zero-coupon/JJ
debentures/NNS
--/:
which/WDT
ultimately/RB
would/MD
have/VB
had/VBD
to/TO
be/VB
paid/VBN
./.
The/DT
prospectus/NN
notes/VBZ
``/``
there/EX
can/MD
be/VB
no/DT
assurance/NN
''/''
that/IN
future/JJ
growth/NN
will/MD
continue/VB
at/IN
past/JJ
levels/NNS
./.
In/IN
the/DT
recent/JJ
past/NN
,/,
bond/NN
buyers/NNS
did/VBD
n't/RB
seek/VB
such/JJ
assurance/NN
./.
Now/RB
,/,
apparently/RB
,/,
they/PRP
do/VBP
./.
TW/NNP
Services/NNPS
NYSE/NNP
;/:
Symbol/NN
:/:
TW/NNP
Business/NN
:/:
Restaurants/NNS
Year/NN
ended/VBN
Dec./NNP
31/CD
,/,
1988/CD
\*/SYM
Revenue/NN
:/:
$/$
3.57/CD
billion/CD
Net/JJ
Income/NN
:/:
$/$
66.9/CD
million/CD
;/:
$/$
1.36/CD
a/DT
share/NN
\*\*/SYM
Third/JJ
quarter/NN
,/,
Sept./NNP
30/CD
,/,
1989/CD
:/:
Net/JJ
Loss/NN
:/:
7/CD
cents/NNS
share/NN
)/)
vs./FW
net/JJ
income/NN
:/:
51/CD
cents/NNS
a/DT
share/NN
Average/JJ
daily/JJ
trading/NN
volume/NN
:/:
179,032/CD
shares/NNS
Common/JJ
shares/NNS
outstanding/JJ
:/:
49/CD
million/CD
\*/SYM
Includes/VBZ
results/NNS
of/IN
Denny/NNP
's/POS
Inc./NNP
,/,
acquired/VBN
in/IN
September/NNP
\*\*/SYM
Includes/VBZ
$/$
9/CD
million/CD
write-down/NN
of/IN
assets/NNS
and/CC
takeover/NN
defense/NN
costs/NNS
./.
Maggie/NNP
Thatcher/NNP
must/MD
be/VB
doing/VBG
something/NN
right/RB
;/:
her/PRP$
political/JJ
enemies/NNS
are/VBP
screaming/VBG
louder/RBR
than/IN
ever/RB
./.
Mrs./NNP
Thatcher/NNP
,/,
who/WP
was/VBD
practicing/VBG
the/DT
read-my-lips/JJ
school/NN
of/IN
politics/NNS
years/NNS
before/IN
Mr./NNP
Bush/NNP
encountered/VBD
it/PRP
,/,
has/VBZ
made/VBN
clear/JJ
her/PRP$
opposition/NN
to/TO
refashioning/VBG
Britain/NNP
's/POS
free-market/JJ
policies/NNS
to/TO
suit/VB
the/DT
bureaucrats/NNS
in/IN
Brussels/NNP
./.
In/IN
return/NN
,/,
Mrs./NNP
Thatcher/NNP
is/VBZ
excoriated/VBN
from/IN
Fleet/NNP
Street/NNP
to/TO
Paris/NNP
as/IN
an/DT
obstructionist/NN
./.
Well/UH
,/,
it/PRP
now/RB
turns/VBZ
out/RB
that/IN
Mrs./NNP
Thatcher/NNP
had/VBD
to/TO
travel/VB
across/IN
the/DT
globe/NN
to/TO
the/DT
49-member/JJ
Commonwealth/NNP
summit/NN
in/IN
Kuala/NNP
Lumpur/NNP
to/TO
discomfit/VB
the/DT
Holy/NNP
Order/NNP
of/IN
Consensus/NNP
Builders/NNPS
./.
``/``
A/DT
disastrous/JJ
farce/NN
in/IN
Malaysia/NNP
,/,
''/''
screamed/VBD
the/DT
Manchester/NNP
Guardian/NNP
./.
``/``
She/PRP
can/MD
no/RB
longer/RB
be/VB
trusted/VBN
to/TO
behave/VB
in/IN
a/DT
civilised/JJ
--/:
that/DT
is/VBZ
unflaky/JJ
--/:
fashion/NN
when/WRB
abroad/RB
./.
''/''
Egad/UH
./.
Canada/NNP
's/POS
Brian/NNP
Mulroney/NNP
and/CC
Australia/NNP
's/POS
Bob/NNP
Hawke/NNP
,/,
the/DT
paper/NN
said/VBD
,/,
were/VBD
``/``
enraged/JJ
./.
''/''
The/DT
London/NNP
Times/NNPS
said/VBD
she/PRP
had/VBD
``/``
contravened/VBN
protocol/NN
./.
''/''
As/IN
usual/JJ
,/,
her/PRP$
sin/NN
was/VBD
saying/VBG
what/WP
she/PRP
thought/VBD
./.
She/PRP
issued/VBD
a/DT
separate/JJ
statement/NN
,/,
separating/VBG
herself/PRP
from/IN
a/DT
Commonwealth/NNP
document/NN
reasserting/VBG
the/DT
political/JJ
value/NN
of/IN
imposing/VBG
sanctions/NNS
against/IN
South/NNP
Africa/NNP
./.
While/IN
supporting/VBG
the/DT
Commonwealth/NNP
``/``
in/IN
utterly/RB
condemning/VBG
apartheid/NN
,/,
''/''
her/PRP$
statement/NN
urged/VBD
it/PRP
to/TO
``/``
encourage/VB
change/VB
''/''
rather/RB
than/IN
inflict/VB
further/JJ
punishment/NN
on/IN
the/DT
country/NN
's/POS
black/JJ
population/NN
./.
Actually/RB
there/EX
is/VBZ
a/DT
consensus/NN
somewhere/RB
on/IN
sanctions/NNS
:/:
In/IN
May/NNP
a/DT
Gallup/NNP
Poll/NNP
found/VBD
that/DT
most/JJS
South/JJ
African/JJ
blacks/NNS
,/,
85/CD
%/NN
,/,
oppose/VBP
economic/JJ
sanctions/NNS
./.
Still/RB
,/,
Mrs./NNP
Thatcher/NNP
had/VBD
once/RB
again/RB
gone/VBN
against/IN
the/DT
grain/NN
./.
Malaysia/NNP
's/POS
Prime/NNP
Minister/NNP
Mahathir/NNP
Mohamad/NNP
sniffed/VBD
,/,
``/``
If/IN
everybody/NN
else/RB
puts/VBZ
out/RP
their/PRP$
left/JJ
foot/NN
and/CC
you/PRP
put/VBP
out/RP
your/PRP$
right/JJ
foot/NN
,/,
you/PRP
are/VBP
out/IN
of/IN
step/NN
./.
''/''
Mrs./NNP
Thatcher/NNP
:/:
``/``
If/IN
it/PRP
's/VBZ
one/CD
against/IN
48/CD
,/,
I/PRP
'm/VBP
very/RB
sorry/JJ
for/IN
the/DT
48/CD
./.
''/''
If/IN
indeed/RB
Mrs./NNP
Thatcher/NNP
has/VBZ
one/CD
opponent/NN
that/WDT
could/MD
throw/VB
her/PRP
off/RB
political/JJ
course/NN
it/PRP
is/VBZ
Britain/NNP
's/POS
mysteriously/RB
intractable/JJ
inflation/NN
problem/NN
./.
We/PRP
can/MD
not/RB
,/,
however/RB
,/,
join/VB
the/DT
political/JJ
chorus/NN
that/IN
as/IN
one/CD
proclaims/VBZ
how/WRB
offputting/JJ
it/PRP
is/VBZ
that/IN
Mrs./NNP
Thatcher/NNP
refuses/VBZ
to/TO
get/VB
along/RB
by/IN
going/VBG
along/RB
./.
It/PRP
is/VBZ
refreshing/JJ
to/TO
see/VB
at/IN
least/JJS
one/CD
world/NN
figure/NN
who/WP
knows/VBZ
what/WP
she/PRP
believes/VBZ
in/RB
and/CC
is/VBZ
not/RB
inclined/VBN
to/TO
reflexively/RB
compromise/VB
those/DT
beliefs/NNS
./.
Perhaps/RB
Mrs./NNP
Thatcher/NNP
understands/VBZ
better/RBR
than/IN
those/DT
distressed/JJ
at/IN
her/PRP$
style/NN
that/IN
ultimately/RB
history/NN
and/CC
Britain/NNP
's/POS
voters/NNS
will/MD
decide/VB
who/WP
is/VBZ
right/JJ
about/IN
Europe/NNP
,/,
sanctioning/VBG
South/NNP
Africa/NNP
or/CC
running/VBG
Britain/NNP
's/POS
economy/NN
./.
Follow/VB
With/IN
Care/NN
``/``
Work/VB
hard/RB
,/,
play/VB
hard/RB
''/''
is/VBZ
advice/NN
Best/RBS
taken/VBN
with/IN
some/DT
caution/NN
,/,
For/IN
it/PRP
can/MD
bring/VB
fitness/NN
and/CC
success/NN
Or/CC
a/DT
state/NN
of/IN
total/JJ
exhaustion/NN
./.
--/:
Edward/NNP
F./NNP
Dempsey/NNP
./.
Double/RB
Check/VB
The/DT
guest/NN
paid/VBD
his/PRP$
bill/NN
at/IN
the/DT
resort/NN
hotel/NN
,/,
and/CC
as/IN
he/PRP
departed/VBD
he/PRP
noticed/VBD
a/DT
sign/NN
saying/VBG
,/,
``/``
Have/VBP
You/PRP
Left/VBN
Anything/NN
?/.
''/''
The/DT
man/NN
went/VBD
back/RB
and/CC
spoke/VBD
to/TO
the/DT
desk/NN
clerk/NN
:/:
``/``
That/DT
sign/NN
is/VBZ
wrong/JJ
,/,
''/''
he/PRP
said/VBD
./.
``/``
It/PRP
should/MD
read/VB
,/,
``/``
Have/VBP
You/PRP
Anything/NN
Left/VBN
?/.
''/''
--/:
Sam/NNP
Ewing/NNP
./.
After/IN
being/VBG
trampled/VBN
in/IN
Tuesday/NNP
's/POS
selling/NN
stampede/NN
,/,
the/DT
Nasdaq/NNP
over-the-counter/JJ
market/NN
dusted/VBD
itself/PRP
off/RP
and/CC
moved/VBD
on/RB
in/IN
moderate/JJ
trading/NN
./.
But/CC
while/IN
the/DT
Composite/NNP
gained/VBD
1.19/CD
,/,
to/TO
462.89/CD
,/,
many/JJ
issues/NNS
did/VBD
n't/RB
participate/VB
in/IN
the/DT
advance/NN
./.
``/``
It/PRP
was/VBD
a/DT
mixed/JJ
bag/NN
,/,
''/''
said/VBD
Richard/NNP
Bruno/NNP
,/,
who/WP
heads/VBZ
over-the-counter/JJ
trading/NN
at/IN
PaineWebber/NNP
./.
``/``
We/PRP
played/VBD
catch-up/NN
in/IN
some/DT
areas/NNS
,/,
and/CC
sold/VBD
off/RB
in/IN
some/DT
others/NNS
./.
''/''
Volume/NN
totaled/VBD
132.1/CD
million/CD
shares/NNS
,/,
which/WDT
is/VBZ
about/IN
average/NN
for/IN
the/DT
year/NN
./.
Of/IN
the/DT
4,348/CD
issues/NNS
that/IN
changed/VBN
hands/NNS
,/,
1,074/CD
advanced/VBD
and/CC
866/CD
declined/VBD
./.
Big/JJ
financial/JJ
stocks/NNS
carried/VBD
the/DT
day/NN
./.
The/DT
Nasdaq/NNP
Financial/NNP
Index/NNP
rose/VBD
2.09/CD
,/,
to/TO
454.86/CD
./.
Meanwhile/RB
,/,
the/DT
Nasdaq/NNP
100/CD
Index/NNP
of/IN
the/DT
big/JJ
non-financial/JJ
stocks/NNS
basically/RB
stood/VBD
still/RB
,/,
easing/VBG
0.12/CD
,/,
to/TO
452.23/CD
./.
Despite/IN
the/DT
Composite/NNP
's/POS
advance/NN
,/,
some/DT
trading/NN
officials/NNS
are/VBP
guardedly/RB
optimistic/JJ
that/IN
the/DT
market/NN
is/VBZ
on/IN
the/DT
road/NN
to/TO
recovery/NN
./.
Lance/NNP
Zipper/NNP
,/,
head/NN
of/IN
over-the-counter/JJ
trading/NN
at/IN
Kidder/NNP
Peabody/NNP
,/,
said/VBD
it/PRP
is/VBZ
difficult/JJ
to/TO
make/VB
predictions/NNS
based/VBN
on/IN
yesterday/NN
's/POS
trading/NN
volume/NN
./.
The/DT
advance/NN
felt/VBD
more/RBR
like/IN
a/DT
technical/JJ
bounce/NN
,/,
he/PRP
said/VBD
./.
``/``
The/DT
market/NN
acted/VBD
better/RBR
,/,
but/CC
it/PRP
was/VBD
n't/RB
a/DT
tremendous/JJ
comeback/NN
,/,
''/''
Mr./NNP
Zipper/NNP
observed/VBD
./.
``/``
If/IN
we/PRP
get/VBP
a/DT
decent/JJ
rally/NN
today/NN
the/DT
buyers/NNS
will/MD
come/VB
back/RB
./.
''/''
If/IN
E.E./NNP
``/``
Buzzy/NNP
''/''
Geduld/NNP
is/VBZ
right/JJ
,/,
a/DT
seatbelt/NN
may/MD
come/VB
in/IN
handy/JJ
during/IN
the/DT
next/JJ
few/JJ
sessions/NNS
./.
The/DT
president/NN
of/IN
Herzog/NNP
,/,
Heine/NNP
,/,
Mr./NNP
Geduld/NNP
expects/VBZ
the/DT
market/NN
to/TO
be/VB
``/``
very/RB
choppy/JJ
''/''
for/IN
a/DT
while/NN
./.
``/``
There/EX
's/VBZ
a/DT
lot/NN
of/IN
uncertainty/NN
out/IN
there/RB
,/,
and/CC
it/PRP
will/MD
cause/VB
a/DT
lot/NN
of/IN
swings/NNS
,/,
''/''
he/PRP
said/VBD
./.
Among/IN
active/JJ
stocks/NNS
,/,
MCI/NNP
Communications/NNPS
rose/VBD
7\/8/CD
to/TO
43/CD
on/IN
2.2/CD
million/CD
shares/NNS
,/,
Mentor/NNP
Graphics/NNPS
added/VBD
1\/8/CD
to/TO
16/CD
3\/8/CD
on/IN
turnover/NN
of/IN
1.5/CD
million/CD
shares/NNS
./.
Apple/NNP
Computer/NNP
dropped/VBD
1/CD
1\/8/CD
to/TO
46/CD
1\/2/CD
on/IN
one/CD
million/CD
shares/NNS
./.
Almost/RB
one/CD
million/CD
shares/NNS
of/IN
Sun/NNP
Microsystems/NNPS
changed/VBD
hands/NNS
,/,
but/CC
the/DT
issue/NN
was/VBD
unchanged/JJ
at/IN
17/CD
3\/4/CD
./.
Biotechnology/NN
issues/NNS
were/VBD
strong/JJ
./.
Amgen/NNP
advanced/VBD
1/CD
1\/2/CD
to/TO
56/CD
;/:
Chiron/NNP
jumped/VBD
2/CD
to/TO
29/CD
3\/4/CD
;/:
Cetus/NNP
gained/VBD
1/CD
to/TO
16/CD
7\/8/CD
and/CC
Biogen/NNP
rose/VBD
5\/8/CD
to/TO
14/CD
5\/8/CD
./.
The/DT
American/JJ
depositary/NN
receipts/NNS
of/IN
Jaguar/NNP
jumped/VBD
3\/8/CD
to/TO
11/CD
5\/8/CD
on/IN
turnover/NN
of/IN
1.9/CD
million/CD
./.
Ford/NNP
Motor/NNP
said/VBD
it/PRP
raised/VBD
its/PRP$
stake/NN
in/IN
the/DT
British/JJ
car/NN
maker/NN
to/TO
12.45/CD
%/NN
of/IN
the/DT
ordinary/JJ
shares/NNS
outstanding/JJ
./.
In/IN
a/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
filing/NN
,/,
Ford/NNP
said/VBD
it/PRP
holds/VBZ
22.8/CD
million/CD
ordinary/JJ
shares/NNS
./.
The/DT
company/NN
has/VBZ
said/VBN
it/PRP
is/VBZ
prepared/JJ
to/TO
make/VB
a/DT
bid/NN
for/IN
all/DT
of/IN
the/DT
shares/NNS
outstanding/JJ
of/IN
Jaguar/NNP
if/IN
British/JJ
government/NN
restrictions/NNS
to/TO
such/JJ
a/DT
transaction/NN
are/VBP
removed/VBN
./.
Another/DT
takeover/NN
target/NN
,/,
LIN/NNP
Broadcasting/NNP
,/,
rose/VBD
1\/2/CD
to/TO
109/CD
1\/4/CD
on/IN
495,000/CD
shares/NNS
./.
Its/PRP$
suitor/NN
,/,
McCaw/NNP
Cellular/NNP
,/,
also/RB
added/VBD
1\/2/CD
to/TO
40/CD
1\/2/CD
on/IN
395,700/CD
shares/NNS
./.
Other/JJ
stocks/NNS
were/VBD
affected/JJ
by/IN
corporate/JJ
earnings/NNS
./.
Informix/NNP
,/,
which/WDT
recently/RB
said/VBD
third-quarter/JJ
net/JJ
income/NN
rose/VBD
to/TO
16/CD
cents/NNS
a/DT
share/NN
from/IN
a/DT
penny/NN
a/DT
share/NN
a/DT
year/NN
ago/RB
,/,
gained/VBD
1/CD
5\/8/CD
to/TO
13/CD
5\/8/CD
on/IN
810,700/CD
shares/NNS
./.
The/DT
1988/CD
results/NNS
included/VBD
a/DT
one-time/JJ
gain/NN
./.
Cimflex/NNP
Teknowledge/NNP
rose/VBD
13\/16/CD
,/,
or/CC
39/CD
%/NN
,/,
to/TO
2/CD
7\/8/CD
on/IN
volume/NN
of/IN
494,100/CD
shares/NNS
./.
The/DT
maker/NN
of/IN
software/NN
products/NNS
and/CC
services/NNS
,/,
which/WDT
had/VBD
a/DT
net/JJ
loss/NN
in/IN
the/DT
1988/CD
third/JJ
quarter/NN
,/,
earned/VBD
200,000/CD
,/,
or/CC
a/DT
penny/NN
a/DT
share/NN
,/,
in/IN
this/DT
year/NN
's/POS
quarter/NN
./.
It/PRP
was/VBD
Nasdaq/NNP
's/POS
biggest/JJS
percentage/NN
gainer/NN
./.
Star/NNP
States/NNP
plunged/VBD
3/CD
1\/4/CD
to/TO
8/CD
3\/4/CD
on/IN
207,000/CD
shares/NNS
./.
The/DT
company/NN
suffered/VBD
a/DT
$/$
9/CD
million/CD
loss/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
compared/VBN
with/IN
net/NN
of/IN
$/$
2.5/CD
million/CD
a/DT
year/NN
earlier/RB
./.
Collagen/NNP
dropped/VBD
2/CD
5\/8/CD
to/TO
15/CD
5\/8/CD
on/IN
428,000/CD
shares/NNS
./.
In/IN
its/PRP$
fiscal-first/JJ

quarter/NN
ended/VBN
Sept./NNP
30/CD
,/,
the/DT
biomedical-products/NNS
maker/NN
earned/VBD
10/CD
cents/NNS
a/DT
share/NN
,/,
up/RB
from/IN
eight/CD
cents/NNS
a/DT
share/NN
in/IN
the/DT
1988/CD
quarter/NN
,/,
which/WDT
included/VBD
an/DT
extraordinary/JJ
credit/NN
./.
Occupational-Urgent/NNP
Care/NNP
Health/NNP
fell/VBD
1/CD
3\/4/CD
to/TO
15/CD
1\/2/CD
on/IN
354,000/CD
shares/NNS
./.
The/DT
company/NN
's/POS
third-quarter/JJ
earnings/NNS
also/RB
rose/VBD
to/TO
10/CD
cents/NNS
a/DT
share/NN
from/IN
eight/CD
cents/NNS
a/DT
share/NN
a/DT
year/NN
ago/RB
./.
Companies/NNS
listed/VBN
below/RB
reported/VBD
quarterly/JJ
profit/NN
substantially/RB
different/JJ
from/IN
the/DT
average/NN
of/IN
analysts/NNS
'/POS
estimates/NNS
./.
The/DT
companies/NNS
are/VBP
followed/VBN
by/IN
at/IN
least/JJS
three/CD
analysts/NNS
,/,
and/CC
had/VBD
a/DT
minimum/JJ
five-cent/JJ
change/NN
in/IN
actual/JJ
earnings/NNS
per/IN
share/NN
./.
Estimated/VBN
and/CC
actual/JJ
results/NNS
involving/VBG
losses/NNS
are/VBP
omitted/VBN
./.
The/DT
percent/NN
difference/NN
compares/VBZ
actual/JJ
profit/NN
with/IN
the/DT
30-day/JJ
estimate/NN
where/WRB
at/IN
least/JJS
three/CD
analysts/NNS
have/VBP
issues/NNS
forecasts/NNS
in/IN
the/DT
past/JJ
30/CD
days/NNS
./.
Otherwise/RB
,/,
actual/JJ
profit/NN
is/VBZ
compared/VBN
with/IN
the/DT
300-day/JJ
estimate/NN
./.
Source/NN
:/:
Zacks/NNP
Investment/NNP
Research/NNP
One/CD
day/NN
last/JJ
March/NNP
,/,
CBS/NNP
Sports/NNP
President/NNP
Neal/NNP
Pilson/NNP
and/CC
Olympics/NNPS
superagent/NN
Barry/NNP
Frank/NNP
met/VBD
for/IN
lunch/NN
at/IN
the/DT
Lotos/NNP
Club/NNP
here/RB
./.
Mr./NNP
Frank/NNP
told/VBD
Mr./NNP
Pilson/NNP
that/IN
Olympics/NNPS
officials/NNS
wanted/VBD
$/$
290/CD
million/CD
or/CC
more/JJR
for/IN
TV/NN
rights/NNS
to/TO
the/DT
1994/CD
Winter/NNP
Games/NNPS
in/IN
Norway/NNP
./.
The/DT
CBS/NNP
official/NN
said/VBD
that/DT
price/NN
sounded/VBD
fine/JJ
./.
At/IN
that/DT
price/NN
,/,
CBS/NNP
was/VBD
the/DT
only/JJ
player/NN
at/IN
the/DT
table/NN
when/WRB
negotiations/NNS
with/IN
the/DT
International/NNP
Olympic/NNP
Committee/NNP
started/VBD
in/IN
Toronto/NNP
Aug./NNP
23/CD
./.
Dick/NNP
Pound/NNP
,/,
a/DT
committee/NN
member/NN
,/,
began/VBD
by/IN
disclosing/VBG
that/IN
ABC/NNP
and/CC
NBC/NNP
had/VBD
refused/VBN
to/TO
even/RB
bid/VB
./.
Then/RB
,/,
he/PRP
asked/VBD
Mr./NNP
Pilson/NNP
to/TO
raise/VB
his/PRP$
offer/NN
anyway/RB
:/:
``/``
If/IN
we/PRP
can/MD
have/VB
a/DT
number/NN
that/WDT
starts/VBZ
with/IN
a/DT
three/CD
,/,
you/PRP
can/MD
have/VB
a/DT
dea/NN
./.
''/''
Mr./NNP
Pilson/NNP
and/CC
his/PRP$
team/NN
huddled/VBD
in/IN
a/DT
hallway/NN
and/CC
took/VBD
just/RB
10/CD
minutes/NNS
to/TO
return/VB
with/IN
a/DT
$/$
300/CD
million/CD
offer/NN
./.
Mr./NNP
Pound/NNP
responded/VBD
,/,
``/``
It/PRP
's/VBZ
a/DT
deal/NN
./.
''/''
A/DT
beaming/VBG
Mr./NNP
Pilson/NNP
announced/VBD
his/PRP$
lastest/JJS
coup/NN
at/IN
a/DT
news/NN
conference/NN
that/DT
afternoon/NN
./.
Mr./NNP
Pilson/NNP
's/POS
rivals/NNS
at/IN
ABC/NNP
and/CC
NBC/NNP
grimaced/VBD
at/IN
the/DT
price/NN
./.
How/WRB
could/MD
CBS/NNP
get/VB
pushed/VBN
into/IN
outbidding/VBG
itself/PRP
?/.
Well/RB
,/,
CBS/NNP
,/,
mired/VBN
in/IN
the/DT
ratings/NNS
cellar/NN
and/CC
looking/VBG
to/TO
sports/NNS
as/IN
a/DT
way/NN
out/RP
,/,
wanted/VBD
to/TO
close/VB
the/DT
deal/NN
immediately/RB
and/CC
block/VB
its/PRP$
rivals/NNS
from/IN
getting/VBG
another/DT
chance/NN
to/TO
bid/VB
./.
But/CC
Mr./NNP
Pilson/NNP
has/VBZ
been/VBN
put/VBN
in/IN
the/DT
uncomfortable/JJ
role/NN
of/IN
setting/VBG
off/RP
a/DT
bidding/NN
frenzy/NN
for/IN
sports/NNS
rights/NNS
,/,
a/DT
frenzy/NN
that/IN
the/DT
networks/NNS
had/VBD
hoped/VBN
to/TO
avoid/VB
./.
``/``
The/DT
price/NN
of/IN
poker/NN
has/VBZ
gone/VBN
up/RB
,/,
''/''
crows/VBZ
Charles/NNP
M./NNP
Neinas/NNP
,/,
the/DT
College/NNP
Football/NNP
Association/NNP
's/POS
executive/NN
director/NN
./.
With/IN
CBS/NNP
Inc./NNP
on/IN
a/DT
spending/NN
spree/NN
that/WDT
may/MD
top/VB
$/$
2.5/CD
billion/CD
for/IN
four/CD
years/NNS
of/IN
major/JJ
sports/NNS
events/NNS
,/,
the/DT
new/JJ
bout/NN
of/IN
hyperinflation/NN
could/MD
jolt/VB
the/DT
entire/JJ
broadcast/NN
business/NN
./.
CBS/NNP
itself/PRP
could/MD
run/VB
up/RP
losses/NNS
of/IN
a/DT
few/JJ
hundred/CD
million/CD
dollars/NNS
on/IN
four/CD
years/NNS
of/IN
various/JJ
sports/NNS
if/IN
its/PRP$
big/JJ
gamble/NN
goes/VBZ
wrong/JJ
./.
ABC/NNP
,/,
a/DT
unit/NN
of/IN
Capital/NNP
Cities\/ABC/NNP
Inc./NNP
,/,
and/CC
General/NNP
Electric/NNP
Co./NNP
's/POS
National/NNP
Broadcasting/NNP
Co./NNP
also/RB
risk/VBP
losses/NNS
if/IN
they/PRP
outbid/VBP
CBS/NNP
for/IN
other/JJ
contracts/NNS
./.
While/IN
rights/NNS
fees/NNS
head/VBP
skyward/RB
,/,
ad/NN
rates/NNS
wo/MD
n't/RB
./.
Advertisers/NNS
already/RB
are/VBP
balking/VBG
at/IN
higher/JJR
prices/NNS
./.
``/``
The/DT
networks/NNS
are/VBP
paying/VBG
too/RB
much/RB
for/IN
rights/NNS
,/,
''/''
warns/VBZ
adman/NN
Paul/NNP
Isacsson/NNP
of/IN
Young/NNP
&/CC
Rubicam/NNP
./.
``/``
If/IN
they/PRP
ask/VBP
advertisers/NNS
to/TO
absorb/VB
the/DT
costs/NNS
,/,
they/PRP
're/VBP
likely/JJ
to/TO
lose/VB
all/DT
but/CC
a/DT
few/JJ
who/WP
need/VBP
sports/NNS
,/,
above/IN
all/DT
./.
''/''
Viewers/NNS
may/MD
not/RB
be/VB
cheering/VBG
,/,
either/RB
./.
Soaring/VBG
rights/NNS
fees/NNS
will/MD
lead/VB
to/TO
an/DT
even/RB
greater/JJR
clutter/NN
of/IN
commercials/NNS
./.
At/IN
the/DT
same/JJ
time/NN
,/,
some/DT
sports/NNS
events/NNS
will/MD
move/VB
off/IN
``/``
free/JJ
''/''
television/NN
and/CC
onto/IN
cable/NN
or/CC
pay-cable/NN
,/,
where/WRB
half/PDT
the/DT
nation/NN
's/POS
TV/NN
homes/NNS
ca/MD
n't/RB
see/VB
them/PRP
./.
CBS/NNP
has/VBZ
changed/VBN
the/DT
rules/NNS
by/IN
throwing/VBG
out/RP
the/DT
old/JJ
basis/NN
for/IN
sports/NNS
bids/NNS
--/:
that/DT
is/VBZ
,/,
can/MD
the/DT
network/NN
alone/RB
make/VB
a/DT
profit/NN
on/IN
it/PRP
?/.
Mr./NNP
Pilson/NNP
emphasizes/VBZ
the/DT
ancillary/JJ
benefits/NNS
of/IN
positive/JJ
press/NN
,/,
contented/JJ
affiliate/NN
stations/NNS
,/,
enthusiastic/JJ
advertisers/NNS
and/CC
huge/JJ
audiences/NNS
that/WDT
might/MD
stick/VB
around/RB
to/TO
watch/VB
other/JJ
CBS/NNP
programs/NNS
when/WRB
the/DT
game/NN
is/VBZ
over/RP
./.
The/DT
billion-dollar/JJ
question/NN
is/VBZ
,/,
How/WRB
much/JJ
are/VBP
those/DT
benefits/NNS
worth/JJ
?/.
Some/DT
TV/NN
people/NNS
doubt/VBP
they/PRP
will/MD
materialize/VB
and/CC
argue/VBP
that/IN
even/RB
if/IN
they/PRP
do/VBP
,/,
they/PRP
wo/MD
n't/RB
offset/VB
the/DT
multimillion-dollar/JJ
deficits/NNS
that/IN
CBS/NNP
could/MD
run/VB
up/RB
./.
``/``
As/IN
we/PRP
've/VBP
seen/VBN
in/IN
the/DT
'80s/NNS
,/,
''/''
says/VBZ
Roger/NNP
Werner/NNP
,/,
the/DT
president/NN
of/IN
the/DT
ESPN/NNP
sports/NNS
channel/NN
,/,
``/``
those/DT
deals/NNS
can/MD
turn/VB
sour/JJ
if/IN
the/DT
numbers/NNS
do/VBP
n't/RB
work/VB
./.
And/CC
three/CD
years/NNS
later/RB
,/,
in/IN
a/DT
sea/NN
of/IN
red/JJ
ink/NN
,/,
the/DT
heroes/NNS
can/MD
find/VB
themselves/PRP
with/IN
a/DT
lot/NN
of/IN
explaining/VBG
to/TO
do/VB
./.
''/''
CBS/NNP
pursues/VBZ
top/JJ
sports/NNS
``/``
to/TO
belie/VB
the/DT
fact/NN
that/IN
they/PRP
are/VBP
n't/RB
supporting/VBG
affiliates/NNS
,/,
viewers/NNS
and/CC
advertisers/NNS
,/,
''/''
charges/VBZ
Thomas/NNP
H./NNP
Wyman/NNP
,/,
who/WP
was/VBD
ousted/VBN
as/IN
chairman/NN
of/IN
CBS/NNP
Inc./NNP
after/IN
Laurence/NNP
A./NN
Tisch/NNP
bought/VBD
a/DT
24.9/CD
%/NN
stake/NN
in/IN
the/DT
company/NN
and/CC
took/VBD
over/RB
three/CD
years/NNS
ago/RB
./.
``/``
They/PRP
lost/VBD
the/DT
entertainment/NN
crown/NN
,/,
and/CC
they/PRP
needed/VBD
one/NN
./.
And/CC
they/PRP
've/VBP
bought/VBD
one/NN
./.
''/''
On/IN
just/RB
three/CD
big/JJ
deals/NNS
--/:
for/IN
four/CD
years/NNS
of/IN
baseball/NN
and/CC
for/IN
the/DT
Olympic/NNP
Winter/NNP
Games/NNPS
in/IN
both/DT
1992/CD
and/CC
1994/CD
--/:
Pilson/NNP
bid/VBD
a/DT
total/NN
of/IN
$/$
1.64/CD
billion/CD
./.
That/DT
's/VBZ
well/RB
over/IN
half/PDT
a/DT
billion/CD
dollars/NNS
more/JJR
than/IN
ABC/NNP
and/CC
NBC/NNP
were/VBD
willing/JJ
to/TO
pay/VB
./.
1992/CD
,/,
the/DT
winter/NN
and/CC
summer/NN
Olympics/NNPS
will/MD
be/VB
held/VBN
two/CD
years/NNS
apart/RB
,/,
with/IN
the/DT
revised/JJ
schedule/NN
beginning/VBG
with/IN
the/DT
winter/NN
games/NNS
in/IN
1994/CD
and/CC
the/DT
summer/NN
games/NNS
in/IN
1996/CD
./.
Now/RB
,/,
Mr./NNP
Pilson/NNP
--/:
a/DT
former/JJ
college/NN
basketball/NN
player/NN
who/WP
says/VBZ
a/DT
good/JJ
negotiator/NN
needs/VBZ
``/``
a/DT
level/NN
of/IN
focus/NN
and/CC
intellectual/JJ
attention/NN
''/''
similar/JJ
to/TO
a/DT
good/JJ
athlete-s/NN
is/VBZ
facing/VBG
the/DT
consequences/NNS
of/IN
his/PRP$
own/JJ
aggressiveness/NN
./.
Next/JJ
month/NN
,/,
talks/NNS
will/MD
begin/VB
on/IN
two/CD
coveted/JJ
CBS/NNP
contracts/NNS
,/,
for/IN
the/DT
pro/JJ
and/CC
college/NN
basketball/NN
finals/NNS
./.
CBS/NNP
is/VBZ
likely/JJ
to/TO
spend/VB
whatever/WDT
it/PRP
takes/VBZ
to/TO
keep/VB
them/PRP
./.
The/DT
potential/JJ
bill/NN
:/:
more/JJR
than/IN
$/$
600/CD
million/CD
for/IN
several/JJ
seasons/NNS
,/,
an/DT
80/CD
%/NN
jump/NN
./.
A/DT
few/JJ
months/NNS
later/RB
,/,
CBS/NNP
's/POS
college/NN
and/CC
pro/JJ
football/NN
contracts/NNS
come/VBP
up/RB
for/IN
renewal/NN
;/:
they/PRP
could/MD
go/VB
for/IN
close/RB
to/TO
$/$
100/CD
million/CD
more/JJR
than/IN
CBS/NNP
now/RB
pays/VBZ
,/,
a/DT
40/CD
%/NN
to/TO
50/CD
%/NN
rise/NN
./.
``/``
What/WP
happens/VBZ
to/TO
those/DT
two/CD
basketball/NN
contracts/NNS
will/MD
shape/VB
the/DT
next/JJ
five/CD
years/NNS
of/IN
network/NN
sports/NNS
,/,
''/''
says/VBZ
Peter/NNP
Lund/NNP
,/,
a/DT
former/JJ
CBS/NNP
Sports/NNPS
president/NN
now/RB
at/IN
Multimedia/NNP
Inc/NNP
./.
J./NNP
William/NNP
Grimes/NNP
,/,
former/JJ
president/NN
of/IN
ESPN/NNP
,/,
says/VBZ
NBC/NNP
may/MD
``/``
come/VB
in/RB
with/IN
a/DT
huge/JJ
bid/NN
for/IN
college/NN
basketball/NN
to/TO
take/VB
it/PRP
away/RB
from/IN
CBS/NNP
and/CC
say/VB
,/,
`/``
We/PRP
can/MD
overbid/VB
,/,
too/RB
./.
'/''
And/CC
the/DT
winners/NNS
will/MD
be/VB
the/DT
colleges/NNS
,/,
not/RB
either/DT
network/NN
./.
Nor/CC
,/,
by/IN
the/DT
way/NN
,/,
advertisers/NNS
./.
''/''
Mr./NNP
Pilson/NNP
is/VBZ
an/DT
unlikely/JJ
big/JJ
spender/NN
./.
In/IN
the/DT
mid-1980s/NNS
,/,
after/IN
ABC/NNP
had/VBD
just/RB
bid/VBN
a/DT
record/NN
$/$
309/CD
million/CD
for/IN
the/DT
1988/CD
Winter/NNPS
Games/NNPS
,/,
he/PRP
sniped/VBD
at/IN
rivals/NNS
for/IN
paying/VBG
reckless/JJ
prices/NNS
./.
``/``
I/PRP
love/VBP
Pilson/NNP
,/,
but/CC
he/PRP
was/VBD
the/DT
guy/NN
who/WP
complained/VBD
most/RBS
bitterly/RB
and/CC
loudly/RB
,/,
''/''
says/VBZ
Robert/NNP
Wussler/NNP
,/,
a/DT
former/JJ
CBS/NNP
Sports/NNPS
president/NN
./.
``/``
And/CC
yet/RB
his/PRP$
company/NN
is/VBZ
one/CD
reason/NN
why/WRB
rights/NNS
are/VBP
so/RB
high/JJ
today/NN
./.
''/''
Rivals/NNS
carp/VBP
at/IN
``/``
the/DT
principle/NN
of/IN
Pilson/NNP
,/,
''/''
as/IN
NBC/NNP
's/POS
Arthur/NNP
Watson/NNP
once/RB
put/VBD
it/PRP
--/:
``/``
he/PRP
's/VBZ
always/RB
expounding/VBG
that/IN
rights/NNS
are/VBP
too/RB
high/JJ
,/,
then/RB
he/PRP
's/VBZ
going/VBG
crazy/JJ
./.
''/''
But/CC
the/DT
49-year-old/JJ
Mr./NNP
Pilson/NNP
is/VBZ
hardly/RB
a/DT
man/NN
to/TO
ignore/VB
the/DT
numbers/NNS
./.
A/DT
Yale/NNP
law/NN
school/NN
graduate/NN
,/,
he/PRP
began/VBD
his/PRP$
career/NN
in/IN
corporate/JJ
law/NN
and/CC
then/RB
put/VBD
in/RP
years/NNS
at/IN
Metromedia/NNP
Inc./NNP
and/CC
the/DT
William/NNP
Morris/NNP
talent/NN
agency/NN
./.
In/IN
1976/CD
,/,
he/PRP
joined/VBD
CBS/NNP
Sports/NNPS
to/TO
head/VB
business/NN
affairs/NNS
and/CC
,/,
five/CD
years/NNS
later/RB
,/,
became/VBD
its/PRP$
president/NN
./.
Mr./NNP
Pilson/NNP
says/VBZ
that/IN
when/WRB
he/PRP
spoke/VBD
out/RB
a/DT
few/JJ
years/NNS
ago/RB
,/,
``/``
I/PRP
did/VBD
n't/RB
say/VB
forever/RB
,/,
and/CC
I/PRP
did/VBD
n't/RB
say/VB
every/DT
property/NN
./.
''/''
The/DT
market/NN
changed/VBD
,/,
he/PRP
adds/VBZ
./.
And/CC
he/PRP
is/VBZ
n't/RB
the/DT
only/RB
big/JJ
spender/NN
:/:
NBC/NNP
will/MD
pay/VB
a/DT
record/NN
$/$
401/CD
million/CD
for/IN
the/DT
1992/CD
Summer/NNPS
Games/NNPS
,/,
and/CC
ESPN/NNP
,/,
80%-owned/JJ
by/IN
Capital/NNP
Cities\/ABC/NNP
,/,
will/MD
shell/VB
out/RP
$/$
400/CD
million/CD
for/IN
four/CD
years/NNS
of/IN
baseball/NN
,/,
airing/VBG
175/CD
regular-season/JJ
games/NNS
a/DT
year/NN
./.
``/``
Our/PRP$
competitors/NNS
say/VBP
we/PRP
overbid/VBD
them/PRP
./.
Who/WP
cares/VBZ
?/.
Maybe/RB
we/PRP
recognize/VBP
values/NNS
the/DT
other/JJ
guys/NNS
do/VBP
n't/RB
,/,
''/''
Mr./NNP
Pilson/NNP
says/VBZ
./.
Mr./NNP
Pilson/NNP
's/POS
``/``
Major/JJ
Events/NNS
''/''
strategy/NN
jelled/VBD
after/IN
Mr./NNP
Tisch/NNP
took/VBD
over/RP
./.
Mr./NNP
Pilson/NNP
recalls/VBZ
that/IN
in/IN
April/NNP
1986/CD
,/,
after/IN
CBS/NNP
's/POS
annual/JJ
meeting/NN
in/IN
Philadelphia/NNP
,/,
he/PRP
and/CC
Mr./NNP
Tisch/NNP
took/VBD
the/DT
90-minute/JJ
train/NN
ride/NN
back/RB
to/TO
New/NNP
York/NNP
,/,
and/CC
Mr./NNP
Pilson/NNP
used/VBD
this/DT
extended/JJ
private/JJ
audience/NN
to/TO
outline/VB
his/PRP$
ambitions/NNS
./.
Mr./NNP
Tisch/NNP
,/,
a/DT
billionaire/NN
in/IN
hotels/NNS
and/CC
finance/NN
,/,
was/VBD
just/RB
learning/VBG
the/DT
TV/NN
business/NN
./.
Five/CD
months/NNS
later/RB
,/,
Mr./NNP
Tisch/NNP
took/VBD
over/RB
as/IN
CBS/NNP
's/POS
chief/JJ
executive/NN
,/,
and/CC
soon/RB
he/PRP
was/VBD
wielding/VBG
sole/JJ
approval/NN
each/DT
time/NN
Mr./NNP
Pilson/NNP
scribbled/VBD
a/DT
frighteningly/RB
large/JJ
figure/NN
on/IN
a/DT
slip/NN
of/IN
paper/NN
,/,
sealed/VBD
it/PRP
in/IN
an/DT
envelope/NN
and/CC
gave/VBD
it/PRP
to/TO
sports/NNS
negotiators/NNS
./.
Then/RB
,/,
in/IN
May/NNP
1988/CD
,/,
Mr./NNP
Tisch/NNP
urgently/RB
needed/VBD
to/TO
make/VB
a/DT
bold/JJ
statement/NN
to/TO
quell/VB
rumors/NNS
that/IN
he/PRP
might/MD
sell/VB
the/DT
network/NN
./.
Mr./NNP
Pilson/NNP
gave/VBD
him/PRP
one/NN
:/:
He/PRP
bid/VBD
$/$
243/CD
million/CD
for/IN
rights/NNS
to/TO
the/DT
1992/CD
Winter/NNPS
Games/NNPS
in/IN
Albertville/NNP
,/,
France/NNP
;/:
ABC/NNP
and/CC
NBC/NNP
would/MD
n't/RB
bid/VB
even/RB
$/$
200/CD
million/CD
./.
That/WDT
started/VBD
the/DT
still-raging/VBG
bidding/NN
wars/NNS
./.
The/DT
``/``
Major/JJ
Events/NNS
''/''
strategy/NN
,/,
Mr./NNP
Pilson/NNP
says/VBZ
,/,
is/VBZ
designed/VBN
to/TO
notch/VB
a/DT
place/NN
for/IN
CBS/NNP
on/IN
the/DT
crowded/JJ
TV/NN
dial/NN
of/IN
the/DT
1990s/NNS
./.
It/PRP
's/VBZ
also/RB
a/DT
fast/JJ
fix/NN
for/IN
an/DT
ailing/JJ
image/NN
./.
He/PRP
sees/VBZ
flashy/JJ
sports/NNS
as/IN
the/DT
only/JJ
way/NN
the/DT
last-place/JJ
network/NN
can/MD
cut/VB
through/IN
the/DT
clutter/NN
of/IN
cable/NN
and/CC
VCRs/NNS
,/,
grab/VB
millions/NNS
of/IN
new/JJ
viewers/NNS
and/CC
tell/VB
them/PRP
about/IN
other/JJ
shows/NNS
premiering/VBG
a/DT
few/JJ
weeks/NNS
later/RB
./.
Next/IN
October/NNP
,/,
CBS/NNP
,/,
for/IN
the/DT
first/JJ
time/NN
,/,
wo/MD
n't/RB
have/VB
to/TO
start/VB
the/DT
season/NN
against/IN
the/DT
much-watched/JJ
American/JJ
and/CC
National/JJ
baseball/NN
league/NN
championships/NNS
and/CC
the/DT
World/NNP
Series/NNP
./.
``/``
I/PRP
've/VBP
been/VBN
struggling/VBG
against/IN
that/IN
for/IN
years/NNS
,/,
''/''
says/VBZ
Jonathan/NNP
Rodgers/NNP
,/,
who/WP
runs/VBZ
WBBM-TV/NNP
,/,
the/DT
CBS-owned/JJ
station/NN
in/IN
Chicago/NNP
./.
Even/RB
if/IN
baseball/NN
triggers/VBZ
losses/NNS
at/IN
CBS/NNP
--/:
and/CC
he/PRP
does/VBZ
n't/RB
think/VB
it/PRP
will/MD
--/:
``/``
I/PRP
'd/MD
rather/RB
see/VB
the/DT
games/NNS
on/IN
our/PRP$
air/NN
than/IN
on/IN
NBC/NNP
and/CC
ABC/NNP
,/,
''/''
he/PRP
says/VBZ
./.
That/DT
is/VBZ
n't/RB
surprising/JJ
./.
Regular/JJ
TV/NN
series/NN
ratings/NNS
have/VBP
slumped/VBN
in/IN
the/DT
past/JJ
five/CD
years/NNS
,/,
and/CC
premiering/VBG
new/JJ
shows/NNS
is/VBZ
``/``
a/DT
crap/NN
shoot/NN
,/,
''/''
Mr./NNP
Pilson/NNP
says/VBZ
./.
But/CC
top/JJ
sports/NNS
events/NNS
are/VBP
still/RB
a/DT
strong/JJ
bet/NN
to/TO
lure/VB
audiences/NNS
30/CD
%/NN
or/CC
40/CD
%/NN
larger/JJR
than/IN
those/DT
CBS/NNP
usually/RB
gets/VBZ
./.
Mr./NNP
Pilson/NNP
says/VBZ
baseball/NN
and/CC
the/DT
Olympics/NNPS
may/MD
help/VB
CBS/NNP
move/VB
up/RB
to/TO
No./NN
2/CD
in/IN
the/DT
household/NN
ratings/NNS
race/NN
,/,
putting/VBG
pizazz/NN
back/RB
into/IN
the/DT
network/NN
's/POS
image/NN
./.
And/CC
the/DT
Winter/NNPS
Olympics/NNPS
will/MD
air/VB
during/IN
the/DT
February/NNP
``/``
sweeps/NNS
,/,
''/''
when/WRB
ratings/NNS
are/VBP
used/VBN
to/TO
set/VB
ad/NN
rates/NNS
for/IN
local/JJ
stations/NNS
./.
That/DT
will/MD
please/VB
once-grumpy/JJ
affiliates/NNS
--/:
another/DT
aim/NN
of/IN
the/DT
Pilson/NNP
plan/NN
./.
They/PRP
gleefully/RB
await/VBP
the/DT
``/``
dream/NN
season/NN
''/''
in/IN
1990/CD
./.
CBS/NNP
will/MD
air/VB
the/DT
Super/NNP
Bowl/NNP
,/,
baseball/NN
playoffs/NNS
,/,
college/NN
and/CC
pro/JJ
basketball/NN
finals/NNS
and/CC
other/JJ
premier/JJ
sports/NNS
events/NNS
./.
``/``
It/PRP
's/VBZ
made/VBN
me/PRP
more/RBR
committed/JJ
to/TO
CBS/NNP
,/,
''/''
says/VBZ
Philip/NNP
A./NN
Jones/NNP
,/,
the/DT
president/NN
of/IN
Meredith/NNP
Corp./NNP
's/POS
broadcast/NN
group/NN
,/,
which/WDT
has/VBZ
two/CD
CBS/NNP
affiliates/NNS
./.
The/DT
CBS/NNP
plan/NN
to/TO
use/VB
big-time/JJ
sports/NNS
as/IN
a/DT
platform/NN
for/IN
other/JJ
series/NN
carries/VBZ
no/DT
guarantee/NN
of/IN
success/NN
,/,
however/RB
./.
No/DT
amount/NN
of/IN
hype/NN
will/MD
bring/VB
viewers/NNS
back/RB
if/IN
the/DT
shows/NNS
are/VBP
weak/JJ
./.
``/``
In/IN
this/DT
market/NN
of/IN
40/CD
channels/NNS
,/,
sophisticated/JJ
viewers/NNS
and/CC
the/DT
remote/JJ
control/NN
,/,
trial/NN
is/VBZ
n't/RB
a/DT
guarantee/NN
of/IN
anything/NN
,/,
''/''
ESPN/NNP
's/POS
Mr./NNP
Werner/NNP
says/VBZ
./.
``/``
If/IN
the/DT
show/NN
ai/VBP
n't/RB
a/DT
killer/NN
,/,
they/PRP
're/VBP
gone/VBN
./.
''/''
During/IN
the/DT
1984/CD
Summer/NNPS
Games/NNPS
,/,
for/IN
example/NN
,/,
ABC/NNP
touted/VBD
``/``
Call/VB
to/TO
Glory/NN
,/,
''/''
but/CC
the/DT
military/JJ
drama/NN
was/VBD
missing/VBG
in/IN
action/NN
within/IN
weeks/NNS
./.
Last/JJ
October/NNP
,/,
during/IN
the/DT
1988/CD
Summer/NNPS
Games/NNPS
,/,
NBC/NNP
relentlessly/RB
pitched/VBD
a/DT
new/JJ
series/NN
,/,
``/``
Tattingers/NNPS
./.
''/''
It/PRP
belly-flopped/VBD
anyway/RB
./.
Moreover/RB
,/,
sports/NNS
is/VBZ
hardly/RB
the/DT
best/JJS
way/NN
to/TO
lure/VB
adult/NN
women/NNS
./.
Though/NNP
CBS/NNP
might/MD
move/VB
up/RB
to/TO
No./NN
2/CD
in/IN
household/NN
ratings/NNS
,/,
most/JJS
advertisers/NNS
buy/VBP
based/VBN
on/IN
ratings/NNS
for/IN
women/NNS
aged/VBN
18/CD
to/TO
49/CD
./.
CBS/NNP
may/MD
remain/VB
a/DT
distant/JJ
No./NN
3/CD
in/IN
that/DT
regard/NN
./.
Nor/CC
is/VBZ
CBS/NNP
a/DT
shoo-in/NN
to/TO
get/VB
blockbuster/JJ
ratings/NNS
./.
In/IN
recent/JJ
years/NNS
,/,
the/DT
World/NNP
Series/NNP
and/CC
the/DT
Olympics/NNPS
were/VBD
aired/VBN
against/IN
CBS/NNP
's/POS
last-place/JJ
lineup/NN
./.
But/CC
CBS/NNP
will/MD
put/VB
the/DT
athletes/NNS
up/RP
against/IN
Bill/NNP
Cosby/NNP
,/,
``/``
Cheers/NNP
''/''
and/CC
other/JJ
shows/NNS
in/IN
NBC/NNP
's/POS
No./NN
1/CD
schedule/NN
./.
Even/RB
the/DT
boon/NN
to/TO
affiliate/NN
relations/NNS
may/MD
be/VB
limited/JJ
./.
The/DT
sports/NNS
lineup/NN
may/MD
add/VB
only/RB
1/CD
%/NN
to/TO
5/CD
%/NN
to/TO
a/DT
station/NN
's/POS
annual/JJ
profits/NNS
./.
It/PRP
alone/RB
is/VBZ
n't/RB
likely/JJ
to/TO
stop/VB
a/DT
station/NN
from/IN
dumping/VBG
CBS/NNP
shows/NNS
./.
``/``
The/DT
World/NNP
Series/NNP
,/,
seven/CD
nights/NNS
,/,
was/VBD
n't/RB
enough/RB
of/IN
an/DT
incentive/NN
,/,
''/''
says/VBZ
Arnold/NNP
Klinsky/NNP
of/IN
WHEC-TV/NNP
in/IN
Rochester/NNP
,/,
which/WDT
dropped/VBD
CBS/NNP
for/IN
NBC/NNP
six/CD
weeks/NNS
ago/RB
./.
``/``
You/PRP
've/VBP
got/VBN
to/TO
judge/VB
where/WRB
the/DT
network/NN
will/MD
be/VB
in/IN
three/CD
years/NNS
./.
''/''
The/DT
intangible/JJ
benefits/NNS
may/MD
prove/VB
extremely/RB
costly/JJ
if/IN
CBS/NNP
ca/MD
n't/RB
avoid/VB
big/JJ
losses/NNS
on/IN
the/DT
sports/NNS
coverage/NN
itself/PRP
./.
And/CC
avoiding/VBG
such/JJ
losses/NNS
will/MD
take/VB
a/DT
monumental/JJ
effort/NN
./.
On/IN
the/DT
$/$
1.06/CD
billion/CD
baseball/NN
agreement/NN
alone/RB
,/,
CBS/NNP
is/VBZ
likely/JJ
to/TO
lose/VB
$/$
250/CD
million/CD
in/IN
four/CD
years/NNS
,/,
contends/VBZ
Mr./NNP
Wussler/NNP
,/,
the/DT
former/JJ
CBS/NNP
man/NN
,/,
now/RB
at/IN
Comsat/NNP
Inc/NNP
./.
Nevertheless/RB
,/,
he/PRP
deems/VBZ
the/DT
deal/NN
``/``
plain/RB
smart/JJ
''/''
for/IN
its/PRP$
huge/JJ
promotional/JJ
value/NN
./.
Mr./NNP
Pilson/NNP
calls/VBZ
that/IN
loss/NN
estimate/NN
``/``
wildly/RB
inaccurate/JJ
,/,
''/''
conceding/VBG
only/RB
that/IN
CBS/NNP
will/MD
lose/VB
money/NN
on/IN
baseball/NN
in/IN
the/DT
first/JJ
year/NN
./.
``/``
It/PRP
's/VBZ
too/RB
early/JJ
to/TO
tell/VB
''/''
what/WP
happens/VBZ
after/IN
that/DT
,/,
he/PRP
says/VBZ
./.
But/CC
Mr./NNP
Tisch/NNP
expects/VBZ
losses/NNS
in/IN
all/DT
four/CD
years/NNS
of/IN
the/DT
contract/NN
,/,
he/PRP
told/VBD
U.S./NNP
senators/NNS
last/JJ
June/NNP
./.
CBS/NNP
will/MD
pay/VB
an/DT
average/NN
of/IN
$/$
82/CD
million/CD
more/JJR
each/DT
year/NN
than/IN
ABC/NNP
and/CC
NBC/NNP
had/VBD
paid/VBN
together/RB
--/:
and/CC
those/DT
two/CD
networks/NNS
expect/VBP
losses/NNS
on/IN
baseball/NN
this/DT
season/NN
./.
Yet/RB
CBS/NNP
will/MD
air/VB
only/RB
12/CD
regular-season/JJ
games/NNS
,/,
26/CD
fewer/JJR
than/IN
ABC/NNP
and/CC
NBC/NNP
./.
That/DT
has/VBZ
outraged/VBN
some/DT
fans/NNS
./.
It/PRP
also/RB
indicates/VBZ
a/DT
$/$
50/CD
million/CD
drop/NN
in/IN
ad/NN
sales/NNS
for/IN
regular-season/JJ
games/NNS
--/:
a/DT
risk/NN
CBS/NNP
took/VBD
to/TO
get/VB
an/DT
unprecedented/JJ
lock/NN
on/IN
all/DT
playoff/NN
games/NNS
./.
If/IN
the/DT
playoffs/NNS
end/VBP
in/IN
four-game/JJ
sweeps/NNS
,/,
losses/NNS
could/MD
soar/VB
./.
Advertisers/NNS
are/VBP
resisting/VBG
higher/JJR
prices/NNS
,/,
which/WDT
would/MD
help/VB
close/VB
the/DT
gap/NN
./.
CBS/NNP
signed/VBD
General/NNP
Motors/NNPS
and/CC
Toyota/NNP
to/TO
be/VB
the/DT
only/JJ
auto-maker/NN
sponsors/NNS
in/IN
baseball/NN
for/IN
four/CD
years/NNS
./.
Price/NN
:/:
$/$
265/CD
million/CD
./.
But/CC
ad/NN
executives/NNS
who/WP
negotiated/VBD
the/DT
deal/NN
say/VBP
that/WDT
works/VBZ
out/RB
to/TO
only/RB
$/$
275,000/CD
for/IN
a/DT
30-second/JJ
ad/NN
in/IN
the/DT
World/NNP
Series/NNP
through/IN
1993/CD
--/:
17/CD
%/NN
less/JJR
than/IN
what/WP
ABC/NNP
is/VBZ
charging/VBG
for/IN
the/DT
Series/NNP
this/DT
month/NN
./.
Moreover/RB
,/,
``/``
there/EX
's/VBZ
no/DT
question/NN
ad/NN
rates/NNS
will/MD
come/VB
down/RP
considerably/RB
''/''
from/IN
the/DT
GM-Toyota/JJ
price/NN
,/,
says/VBZ
Arnold/NNP
Chase/NNP
of/IN
Bozell/NNP
Inc/NNP
./.
Other/JJ
admen/NNS
,/,
however/RB
,/,
say/VBP
rates/NNS
could/MD
rise/VB
later/RB
if/IN
ad/NN
spending/NN
surges/VBZ
./.
The/DT
Winter/NNPS
Games/NNPS
outlook/NN
also/RB
is/VBZ
mixed/JJ
./.
CBS/NNP
expects/VBZ
to/TO
make/VB
modest/JJ
profits/NNS
,/,
but/CC
rivals/NNS
contend/VBP
that/IN
it/PRP
will/MD
take/VB
a/DT
beating/NN
./.
ABC/NNP
lost/VBD
$/$
75/CD
million/CD
on/IN
the/DT
1988/CD
Winter/NNP
Games/NNPS
,/,
partly/RB
because/IN
of/IN
its/PRP$
$/$
309/CD
million/CD
rights/NNS
fee/NN
./.
It/PRP
aired/VBD
94.5/CD
hours/NNS
of/IN
mostly/RB
live/JJ
events/NNS
in/IN
Calgary/NNP
--/:
helping/VBG
raise/VB
ratings/NNS
slightly/RB
from/IN
1984/CD
--/:
but/CC
still/RB
failed/VBD
to/TO
deliver/VB
the/DT
audience/NN
promised/VBN
to/TO
advertisers/NNS
./.
CBS/NNP
will/MD
add/VB
25/CD
1\/2/CD
hours/NNS
to/TO
that/DT
load/NN
in/IN
1992/CD
,/,
and/CC
ratings/NNS
could/MD
be/VB
hurt/VBN
by/IN
a/DT
lack/NN
of/IN
live/JJ
events/NNS
./.
All/DT
prime-time/JJ
fare/NN
will/MD
be/VB
on/IN
tape-delay/NN
because/IN
of/IN
time/NN
differences/NNS
with/IN
Norway/NNP
,/,
so/RB
the/DT
results/NNS
can/MD
be/VB
announced/VBN
on/IN
the/DT
6/CD
o'clock/RB
news/NN
./.
Turner/NNP
Broadcasting/NNP
will/MD
pay/VB
CBS/NNP
$/$
25/CD
million/CD
to/TO
air/NN
50/CD
hours/NNS
of/IN
CBS/NNP
coverage/NN
plus/CC
50/CD
hours/NNS
of/IN
additional/JJ
events/NNS
./.
Barry/NNP
Frank/NNP
,/,
the/DT
agent/NN
who/WP
took/VBD
Mr./NNP
Pilson/NNP
to/TO
lunch/VB
last/JJ
March/NNP
,/,
says/VBZ
that/IN
even/RB
if/IN
CBS/NNP
loses/VBZ
,/,
say/VB
,/,
$/$
10/CD
million/CD
,/,
it/PRP
matters/VBZ
little/JJ
./.
``/``
Ten/CD
million/CD
ai/VBP
n't/RB
jack/NN
,/,
man/UH
,/,
when/WRB
you/PRP
got/VBD
$/$
3/CD
billion/CD
sitting/VBG
in/IN
the/DT
bank/NN
,/,
''/''
says/VBZ
Mr./NNP
Frank/NNP
,/,
senior/JJ
vice/NN
president/NN
at/IN
International/NNP
Management/NNP
Group/NNP
,/,
citing/VBG
CBS/NNP
's/POS
enormous/JJ
cash/NN
reserves/NNS
from/IN
selling/VBG
off/RP
various/JJ
businesses/NNS
./.
``/``
It/PRP
does/VBZ
n't/RB
mean/VB
anything/NN
--/:
it/PRP
's/VBZ
public-relations/JJ
money/NN
./.
''/''
Moreover/RB
,/,
sports/NNS
has/VBZ
``/``
claimed/VBN
its/PRP$
place/NN
''/''
as/IN
a/DT
guaranteed/JJ
ratings-getter/NN
,/,
says/VBZ
David/NNP
J./NNP
Stern/NNP
,/,
the/DT
commissioner/NN
of/IN
the/DT
National/NNP
Basketball/NNP
Association/NNP
./.
``/``
This/DT
is/VBZ
n't/RB
outlandish/JJ
bidding/NN
;/:
this/DT
is/VBZ
a/DT
situation/NN
of/IN
very/RB
careful/JJ
businessmen/NNS
making/VBG
judgments/NNS
about/IN
the/DT
worth/NN
of/IN
product/NN
and/CC
acting/VBG
on/IN
it/PRP
.../:
./.
I/PRP
would/MD
tend/VB
to/TO
trust/VB
their/PRP$
judgment/NN
./.
''/''
That/DT
's/VBZ
easy/JJ
for/IN
him/PRP
to/TO
say/VB
:/:
CBS/NNP
's/POS
four-year/JJ
NBA/NNP
pact/NN
,/,
now/RB
at/IN
$/$
176/CD
million/CD
for/IN
four/CD
years/NNS
,/,
could/MD
double/VB
in/IN
price/NN
by/IN
the/DT
time/NN
his/PRP$
talks/NNS
with/IN
Mr./NNP
Pilson/NNP
are/VBP
completed/VBN
later/RBR
this/DT
month/NN
./.
That/DT
would/MD
cut/VB
into/IN
CBS/NNP
's/POS
slim/JJ
margin/NN
for/IN
profit/NN
--/:
and/CC
error/NN
./.
CBS/NNP
Sports/NNPS
earned/VBD
$/$
50/CD
million/CD
or/CC
so/RB
last/JJ
year/NN
./.
And/CC
CBS/NNP
takes/VBZ
in/IN
the/DT
least/JJS
money/NN
in/IN
prime/JJ
time/NN
;/:
ABC/NNP
and/CC
NBC/NNP
charge/VBP
30/CD
%/NN
to/TO
35/CD
%/NN
more/JJR
for/IN
ads/NNS
,/,
according/VBG
to/TO
a/DT
Variety/NNP
survey/NN
./.
But/CC
CBS/NNP
's/POS
costs/NNS
are/VBP
huge/JJ
,/,
and/CC
the/DT
risks/NNS
go/VBP
up/RB
with/IN
each/DT
new/JJ
sports/NNS
package/NN
that/IN
CBS/NNP
locks/VBZ

up/RP
./.
Although/IN
sports/NNS
officials/NNS
predict/VBP
jumps/NNS
of/IN
50/CD
%/NN
to/TO
100/CD
%/NN
in/IN
the/DT
major/JJ
contracts/NNS
coming/VBG
up/RB
for/IN
renewal/NN
,/,
ad/NN
rates/NNS
may/MD
rise/VB
only/RB
20/CD
%/NN
./.
CBS/NNP
hopes/VBZ
to/TO
save/VB
money/NN
by/IN
ordering/VBG
fewer/JJR
episodes/NNS
of/IN
regular/JJ
series/NN
because/IN
sports/NNS
will/MD
fill/VB
up/RP
a/DT
few/JJ
weeks/NNS
of/IN
prime/JJ
time/NN
./.
But/CC
the/DT
savings/NNS
will/MD
be/VB
minuscule/JJ
./.
Each/DT
hour/NN
of/IN
Olympics/NNPS
and/CC
baseball/NN
in/IN
prime/JJ
time/NN
will/MD
cost/VB
CBS/NNP
$/$
2.6/CD
million/CD
to/TO
$/$
2.8/CD
million/CD
;/:
an/DT
hour-long/JJ
drama/NN
costs/VBZ
only/RB
$/$
900,000/CD
,/,
and/CC
it/PRP
is/VBZ
aired/VBN
twice/RB
./.
CBS/NNP
may/MD
cushion/VB
losses/NNS
with/IN
about/IN
$/$
200/CD
million/CD
a/DT
year/NN
in/IN
interest/NN
earned/VBN
on/IN
the/DT
proceeds/NNS
from/IN
selling/VBG
CBS/NNP
Records/NNPS
and/CC
other/JJ
businesses/NNS
./.
But/CC
media-stock/JJ
analyst/NN
Richard/NNP
J./NNP
MacDonald/NNP
of/IN
MacDonald/NNP
Grippo/NNP
Riely/NNP
says/VBZ
Wall/NNP
Street/NNP
wo/MD
n't/RB
take/VB
kindly/RB
to/TO
that/DT
./.
``/``
On/IN
a/DT
stand-alone/JJ
basis/NN
,/,
the/DT
network/NN
ought/MD
to/TO
make/VB
money/NN
,/,
''/''
he/PRP
says/VBZ
./.
When/WRB
Mr./NNP
Pilson/NNP
is/VBZ
asked/VBN
directly/RB
--/:
can/MD
you/PRP
make/VB
money/NN
on/IN
all/PDT
this/DT
?/.
--/:
he/PRP
does/VBZ
n't/RB
exactly/RB
say/VB
yes/UH
./.
``/``
What/WP
you/PRP
're/VBP
really/RB
asking/VBG
is/VBZ
,/,
Are/VBP
the/DT
profit/NN
and/CC
loss/NN
margins/NNS
anticipated/VBN
on/IN
the/DT
events/NNS
acceptable/JJ
to/TO
management/NN
?/.
''/''
he/PRP
says/VBZ
./.
Then/RB
,/,
he/PRP
answers/VBZ
his/PRP$
own/JJ
question/NN
./.
``/``
Yes/UH
,/,
they/PRP
are/VBP
./.
That/DT
's/VBZ
the/DT
only/JJ
question/NN
we/PRP
need/VBP
to/TO
address/VB
./.
''/''
Place/VB
a/DT
phone/NN
order/NN
through/IN
most/JJS
any/DT
catalog/NN
and/CC
chances/NNS
are/VBP
the/DT
clerk/NN
who/WP
answers/VBZ
wo/MD
n't/RB
be/VB
the/DT
only/RB
one/NN
on/IN
the/DT
line/NN
./.
Bosses/NNS
have/VBP
big/JJ
ears/NNS
these/DT
days/NNS
./.
Or/CC
open/VB
up/RP
an/DT
electronics/NNS
magazine/NN
and/CC
peruse/VB
the/DT
ads/NNS
for/IN
sneaky/JJ
tape/NN
recorders/NNS
and/CC
other/JJ
snooping/VBG
gadgets/NNS
./.
Some/DT
would/MD
make/VB
even/RB
James/NNP
Bond/NNP
green/JJ
with/IN
envy/NN
./.
Eavesdropping/NN
--/:
both/DT
corporate/JJ
and/CC
private/JJ
--/:
is/VBZ
on/IN
the/DT
rise/NN
,/,
thanks/NNS
to/TO
the/DT
proliferation/NN
of/IN
surveillance/NN
technologies/NNS
./.
And/CC
while/IN
sellers/NNS
of/IN
the/DT
equipment/NN
and/CC
companies/NNS
``/``
monitoring/VBG
''/''
employees/NNS
have/VBP
few/JJ
qualms/NNS
,/,
right-to-privacy/JJ
advocates/NNS
and/CC
some/DT
lawmakers/NNS
are/VBP
alarmed/JJ
./.
``/``
New/JJ
technologies/NNS
are/VBP
changing/VBG
the/DT
way/NN
we/PRP
deal/VBP
with/IN
each/DT
other/JJ
and/CC
the/DT
way/NN
we/PRP
work/VBP
,/,
''/''
says/VBZ
Janlori/NNP
Goldman/NNP
,/,
a/DT
staff/NN
attorney/NN
at/IN
the/DT
American/NNP
Civil/NNP
Liberties/NNPS
Union/NNP
./.
``/``
Our/PRP$
expectation/NN
of/IN
confidentiality/NN
is/VBZ
being/VBG
eroded/VBN
./.
''/''
On/IN
the/DT
corporate/JJ
side/NN
,/,
companies/NNS
claim/VBP
that/IN
monitoring/VBG
employee/NN
phone/NN
conversations/NNS
is/VBZ
both/DT
legal/JJ
and/CC
necessary/JJ
to/TO
gauge/VB
productivity/NN
and/CC
ensure/VB
good/JJ
service/NN
./.
The/DT
practice/NN
is/VBZ
common/JJ
at/IN
catalog/NN
,/,
insurance/NN
and/CC
phone/NN
companies/NNS
,/,
banks/NNS
and/CC
telemarketers/NNS
,/,
according/VBG
to/TO
trade/NN
groups/NNS
and/CC
worker/NN
organizations/NNS
./.
It/PRP
's/VBZ
also/RB
widespread/JJ
for/IN
reservations/NNS
clerks/NNS
in/IN
the/DT
airline/NN
,/,
car-rental/JJ
,/,
hotel/NN
and/CC
railroad/NN
industries/NNS
./.
The/DT
Communications/NNPS
Workers/NNPS
of/IN
America/NNP
,/,
which/WDT
opposes/VBZ
such/JJ
monitoring/NN
,/,
says/VBZ
supervisors/NNS
listen/VBP
in/RB
on/IN
an/DT
estimated/VBN
400/CD
million/CD
calls/NNS
each/DT
year/NN
./.
Among/IN
companies/NNS
saying/VBG
they/PRP
monitor/VBP
employees/NNS
are/VBP
United/NNP
Airlines/NNPS
,/,
American/NNP
Airlines/NNPS
,/,
United/NNP
Parcel/NNP
Service/NNP
,/,
Nynex/NNP
Corp./NNP
,/,
Spiegel/NNP
Inc./NNP
,/,
and/CC
the/DT
circulation/NN
department/NN
of/IN
this/DT
newspaper/NN
./.
Some/DT
Wall/NNP
Street/NNP
firms/NNS
monitor/VBP
for/IN
recordkeeping/NN
purposes/NNS
./.
Dictaphone/NNP
Corp./NNP
says/VBZ
there/EX
's/VBZ
a/DT
big/JJ
business/NN
demand/NN
for/IN
its/PRP$
voice-activated/JJ
taping/VBG
systems/NNS
,/,
whether/IN
the/DT
sophisticated/JJ
Veritrac/NNP
9000/CD
system/NN
,/,
which/WDT
costs/VBZ
from/IN
$/$
10,000/CD
to/TO
$/$
120,000/CD
and/CC
can/MD
record/VB
240/CD
conversations/NNS
simultaneously/RB
,/,
or/CC
simple/JJ
handheld/JJ
units/NNS
selling/VBG
for/IN
$/$
395/CD
./.
Businesses/NNS
``/``
want/VBP
to/TO
verify/VB
information/NN
and/CC
ensure/VB
accuracy/NN
,/,
''/''
says/VBZ
John/NNP
Hiltunen/NNP
,/,
Dictaphone/NNP
's/POS
manager/NN
of/IN
media/NNS
relations/NNS
./.
The/DT
state/NN
of/IN
Alaska/NNP
recently/RB
bought/VBD
the/DT
Veritrac/NNP
system/NN
,/,
he/PRP
says/VBZ
,/,
``/``
to/TO
monitor/VB
the/DT
Exxon/NNP
cleanup/NN
effort/NN
./.
''/''
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
and/CC
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
say/VBP
they/PRP
use/VBP
voice-activated/JJ
systems/NNS
to/TO
record/VB
and/CC
verify/VB
orders/NNS
between/IN
salesmen/NNS
and/CC
traders/NNS
./.
Shearson/NNP
says/VBZ
it/PRP
has/VBZ
taped/VBN
some/DT
of/IN
its/PRP$
institutional/JJ
trading/NN
desks/NNS
,/,
such/JJ
as/IN
commodities/NNS
and/CC
futures/NNS
,/,
for/IN
about/IN
four/CD
years/NNS
./.
Both/DT
companies/NNS
stress/VBP
that/IN
employees/NNS
know/VBP
they/PRP
are/VBP
being/VBG
recorded/VBN
and/CC
that/IN
customer/NN
conversations/NNS
are/VBP
n't/RB
taped/VBN
./.
Kidder/NNP
Peabody/NNP
&/CC
Co./NNP
says/VBZ
it/PRP
monitors/VBZ
bond-trading/NN
conversations/NNS
between/IN
brokers/NNS
and/CC
customers/NNS
to/TO
safeguard/VB
order/NN
accuracy/NN
./.
Eavesdropping/NN
by/IN
individuals/NNS
is/VBZ
harder/JJR
to/TO
measure/VB
./.
But/CC
devices/NNS
are/VBP
there/RB
for/IN
the/DT
asking/NN
,/,
whether/IN
in/IN
stores/NNS
or/CC
through/IN
the/DT
mail/NN
./.
The/DT
Counter/NNP
Spy/NNP
Shop/NNP
in/IN
Washington/NNP
,/,
D.C./NNP
,/,
for/IN
instance/NN
,/,
offers/VBZ
the/DT
``/``
Secret/JJ
Connection/NN
''/''
attache/NN
case/NN
,/,
which/WDT
can/MD
surreptitiously/RB
record/VB
conversations/NNS
for/IN
nine/CD
hours/NNS
at/IN
a/DT
stretch/NN
./.
That/DT
and/CC
other/JJ
fancy/JJ
gizmos/NNS
may/MD
cost/VB
thousands/NNS
,/,
but/CC
simple/JJ
voice-activated/JJ
tape/NN
recorders/NNS
sell/VBP
for/IN
as/RB
little/JJ
as/IN
$/$
70/CD
at/IN
electronics/NNS
stores/NNS
like/IN
Radio/NNP
Shack/NNP
./.
The/DT
most/RBS
common/JJ
use/NN
of/IN
spying/VBG
devices/NNS
is/VBZ
in/IN
divorce/NN
cases/NNS
,/,
say/VBP
private/JJ
investigators/NNS
./.
While/IN
tape/NN
recordings/NNS
to/TO
uncover/VB
,/,
say/VB
,/,
infidelity/NN
are/VBP
n't/RB
admissible/JJ
in/IN
court/NN
,/,
they/PRP
can/MD
mean/VB
leverage/NN
in/IN
a/DT
settlement/NN
./.
Concerned/JJ
with/IN
the/DT
increased/JJ
availability/NN
of/IN
surveillance/NN
technology/NN
and/CC
heavier/JJR
use/NN
of/IN
it/PRP
,/,
lawmakers/NNS
have/VBP
proposed/VBN
laws/NNS
addressing/VBG
the/DT
issue/NN
./.
Nine/CD
states/NNS
have/VBP
introduced/VBN
bills/NNS
requiring/VBG
that/IN
workers/NNS
and/CC
customers/NNS
be/VB
made/VBN
aware/JJ
of/IN
monitoring/NN
./.
And/CC
four/CD
states/NNS
--/:
California/NNP
,/,
Florida/NNP
,/,
Michigan/NNP
and/CC
Pennsylvania/NNP
--/:
have/VBP
adopted/VBN
rules/NNS
that/IN
all/DT
parties/NNS
involved/VBN
must/MD
consent/VB
when/WRB
phone/NN
calls/NNS
are/VBP
recorded/VBN
./.
Two/CD
bills/NNS
in/IN
Congress/NNP
hope/VBP
to/TO
make/VB
such/JJ
restrictions/NNS
national/JJ
./.
In/IN
May/NNP
,/,
Rep./NNP
Don/NNP
Edwards/NNP
D./NNP
Calif/NNP
./.
congressional/JJ
legislation/NN
that/WDT
would/MD
require/VB
an/DT
audible/JJ
beeping/NN
during/IN
any/DT
employee/NN
monitoring/NN
,/,
warning/VBG
people/NNS
that/IN
they/PRP
are/VBP
being/VBG
heard/VBN
./.
The/DT
legislation/NN
is/VBZ
similar/JJ
to/TO
a/DT
1987/CD
``/``
beeper/NN
bill/NN
''/''
that/WDT
was/VBD
defeated/VBN
after/IN
heavy/JJ
lobbying/NN
by/IN
the/DT
telemarketing/NN
industry/NN
./.
last/JJ
spring/NN
,/,
Rep./NNP
Ron/NNP
Dellums/NNP
D./NNP
,/,
Calif./NNP
a/DT
bill/NN
requiring/VBG
universal/JJ
two-party/JJ
consent/NN
to/TO
any/DT
tapings/NNS
in/IN
cases/NNS
that/WDT
do/VBP
n't/RB
involve/VB
law/NN
enforcement/NN
./.
In/IN
addition/NN
,/,
products/NNS
such/JJ
as/IN
voice-activated/JJ
tape/NN
recorders/NNS
would/MD
have/VB
to/TO
include/VB
beep/NN
tones/NNS
and/CC
labels/NNS
explaining/VBG
federal/JJ
laws/NNS
on/IN
eavesdropping/NN
./.
The/DT
outlook/NN
on/IN
both/DT
federal/JJ
bills/NNS
is/VBZ
uncertain/JJ
,/,
especially/RB
remembering/VBG
the/DT
1987/CD
defeat/NN
./.
The/DT
ACLU/NNP
and/CC
worker/NN
organizations/NNS
back/VBP
tighter/JJR
laws/NNS
,/,
but/CC
employers/NNS
and/CC
device/NN
manufacturers/NNS
object/VBP
./.
``/``
I/PRP
'm/VBP
sympathetic/JJ
with/IN
workers/NNS
who/WP
feel/VBP
under/IN
the/DT
gun/NN
,/,
''/''
says/VBZ
Richard/NNP
Barton/NNP
of/IN
the/DT
Direct/NNP
Marketing/NNP
Association/NNP
of/IN
America/NNP
,/,
which/WDT
is/VBZ
lobbying/VBG
strenuously/RB
against/IN
the/DT
Edwards/NNP
beeper/NN
bill/NN
./.
``/``
But/CC
the/DT
only/JJ
way/NN
you/PRP
can/MD
find/VB
out/RB
how/WRB
your/PRP$
people/NNS
are/VBP
doing/VBG
is/VBZ
by/IN
listening/VBG
./.
''/''
The/DT
powerful/JJ
group/NN
,/,
which/WDT
represents/VBZ
many/JJ
of/IN
the/DT
nation/NN
's/POS
telemarketers/NNS
,/,
was/VBD
instrumental/JJ
in/IN
derailing/VBG
the/DT
1987/CD
bill/NN
./.
Spiegel/NNP
also/RB
opposes/VBZ
the/DT
beeper/JJR
bill/NN
,/,
saying/VBG
the/DT
noise/NN
it/PRP
requires/VBZ
would/MD
interfere/VB
with/IN
customer/NN
orders/NNS
,/,
causing/VBG
irritation/NN
and/CC
even/JJ
errors/NNS
./.
Laura/NNP
Dale/NNP
,/,
center/NN
manager/NN
at/IN
the/DT
catalog/NN
company/NN
's/POS
customer/NN
order/NN
center/NN
in/IN
Reno/NNP
,/,
Nev./NNP
,/,
defends/VBZ
monitoring/NN
./.
``/``
We/PRP
like/VBP
to/TO
follow/VB
up/RB
and/CC
make/VB
sure/JJ
operators/NNS
are/VBP
achieving/VBG
our/PRP$
standards/NNS
of/IN
company/NN
service/NN
,/,
''/''
says/VBZ
Ms./NNP
Dale/NNP
,/,
who/WP
supervises/VBZ
350/CD
operators/NNS
./.
John/NNP
Bonomo/NNP
,/,
a/DT
Nynex/NNP
spokesman/NN
,/,
says/VBZ
the/DT
telephone/NN
company/NN
needs/VBZ
to/TO
monitor/VB
operators/NNS
to/TO
evaluate/VB
performance/NN
during/IN
the/DT
first/JJ
six/CD
months/NNS
on/IN
the/DT
job/NN
./.
``/``
Sometimes/RB
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
we/PRP
'll/MD
pull/VB
someone/NN
off/IN
the/DT
phones/NNS
for/IN
more/JJR
training/NN
./.
''/''
Federal/JJ
wiretap/NN
statutes/NNS
recognize/VBP
the/DT
right/NN
of/IN
employers/NNS
to/TO
monitor/VB
employees/NNS
'/POS
for/IN
evaluation/NN
purposes/NNS
./.
And/CC
in/IN
the/DT
past/NN
,/,
Congress/NNP
has/VBZ
viewed/VBN
monitoring/NN
as/IN
an/DT
issue/NN
best/RBS
handled/VBN
in/IN
union/NN
negotiations/NNS
./.
But/CC
opponents/NNS
,/,
led/VBN
by/IN
the/DT
CWA/NNP
,/,
say/VBP
new/JJ
laws/NNS
are/VBP
needed/VBN
because/IN
monitoring/NN
is/VBZ
heavily/RB
concentrated/JJ
in/IN
service/NN
industries/NNS
and/CC
81/CD
%/NN
of/IN
monitored/JJ
workers/NNS
are/VBP
n't/RB
represented/VBN
by/IN
unions/NNS
./.
The/DT
CWA/NNP
claims/VBZ
that/IN
monitoring/VBG
not/RB
only/RB
infringes/VBZ
on/IN
employee/NN
privacy/NN
,/,
but/CC
increases/VBZ
stress/NN
./.
``/``
Nine/CD
to/TO
Five/CD
,/,
''/''
a/DT
Cleveland-based/JJ
office/NN
workers/NNS
organization/NN
that/WDT
supports/VBZ
the/DT
beeper/NN
bill/NN
,/,
six/CD
months/NNS
ago/RB
started/VBD
a/DT
privacy/NN
hot/JJ
line/NN
to/TO
receive/VB
reports/NNS
of/IN
alleged/VBN
monitoring/NN
abuses/NNS
./.
Meanwhile/RB
,/,
supporters/NNS
of/IN
the/DT
Dellums/NNP
two-party/JJ
consent/NN
bill/NN
say/VBP
it/PRP
is/VBZ
needed/VBN
because/RB
of/IN
a/DT
giant/JJ
loophole/NN
in/IN
the/DT
one-party/JJ
consent/NN
law/NN
./.
Currently/RB
,/,
if/IN
the/DT
person/NN
taping/VBG
is/VBZ
a/DT
party/NN
to/TO
the/DT
conversation/NN
,/,
it/PRP
's/VBZ
all/RB
right/JJ
to/TO
record/VB
without/IN
the/DT
knowledge/NN
of/IN
the/DT
other/JJ
person/NN
on/IN
the/DT
line/NN
./.
other/JJ
people/NNS
's/POS
private/JJ
conversations/NNS
is/VBZ
illegal/JJ
and/CC
punishable/JJ
by/IN
five/CD
years/NNS
in/IN
prison/NN
and/CC
fines/NNS
of/IN
$/$
10,000/CD
./.
The/DT
electronics/NNS
industry/NN
is/VBZ
closely/RB
following/VBG
the/DT
Dellums/NNP
bill/NN
./.
Some/DT
marketers/NNS
of/IN
surveillance/NN
gear/NN
--/:
including/VBG
Communication/NNP
Control/NNP
System/NNP
Ltd./NNP
,/,
which/WDT
owns/VBZ
the/DT
Counter/NNP
Spy/NNP
Shop/NNP
and/CC
others/NNS
like/IN
it/PRP
--/:
already/RB
put/VBP
warning/VBG
labels/NNS
in/IN
their/PRP$
catalogs/NNS
informing/VBG
customers/NNS
of/IN
the/DT
one-party/JJ
law/NN
./.
But/CC
vendors/NNS
contend/VBP
that/IN
they/PRP
ca/MD
n't/RB
control/VB
how/WRB
their/PRP$
products/NNS
are/VBP
used/VBN
./.
Radio/NNP
Shack/NNP
says/VBZ
it/PRP
has/VBZ
a/DT
policy/NN
against/IN
selling/VBG
products/NNS
if/IN
a/DT
salesperson/NN
suspects/VBZ
they/PRP
will/MD
be/VB
used/VBN
illegally/RB
./.
``/``
Everything/NN
sold/VBD
at/IN
Radio/NNP
Shack/NNP
has/VBZ
a/DT
legal/JJ
purpose/NN
,/,
''/''
says/VBZ
Bernard/NNP
Appel/NNP
,/,
president/NN
of/IN
the/DT
Tandy/NNP
Corp./NNP
subsidiary/NN
./.
He/PRP
says/VBZ
he/PRP
has/VBZ
n't/RB
yet/RB
studied/VBN
the/DT
Dellums/NNP
bill/NN
,/,
but/CC
that/IN
requiring/VBG
a/DT
beeping/VBG
tone/NN
on/IN
recorders/NNS
``/``
would/MD
be/VB
ludicrous/JJ
./.
''/''
Still/RB
,/,
Radio/NNP
Shack/NNP
is/VBZ
aware/JJ
that/IN
some/DT
of/IN
its/PRP$
products/NNS
are/VBP
controversial/JJ
./.
A/DT
few/JJ
years/NNS
ago/RB
,/,
the/DT
company/NN
voluntarily/RB
stopped/VBD
selling/VBG
``/``
The/DT
Big/JJ
Ear/NN
,/,
''/''
a/DT
powerful/JJ
microphone/NN
./.
With/IN
its/PRP$
ability/NN
to/TO
pick/VB
up/RP
rustlings/NNS
and/CC
flapping/VBG
wings/NNS
,/,
``/``
it/PRP
was/VBD
meant/VBN
to/TO
be/VB
a/DT
toy/NN
for/IN
children/NNS
for/IN
bird/NN
watching/NN
,/,
''/''
says/VBZ
Mr./NNP
Appel/NNP
./.
``/``
But/CC
we/PRP
were/VBD
getting/VBG
too/RB
many/JJ
complaints/NNS
that/IN
people/NNS
were/VBD
using/VBG
them/PRP
to/TO
eavesdrop/VB
on/IN
their/PRP$
neighbors/NNS
./.
''/''
The/DT
hottest/JJS
rivalry/NN
in/IN
the/DT
computer/NN
industry/NN
intensified/VBD
sharply/RB
yesterday/RB
as/IN
Digital/NNP
Equipment/NNP
Corp./NNP
announced/VBD
its/PRP$
first/JJ
line/NN
of/IN
mainframe/NN
computers/NNS
,/,
targeting/VBG
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
's/POS
largest/JJS
market/NN
./.
IBM/NNP
fired/VBD
back/RB
with/IN
new/JJ
mainframes/NNS
of/IN
its/PRP$
own/JJ
,/,
extending/VBG
the/DT
long-dominant/JJ
3090/CD
line/NN
with/IN
a/DT
7/CD
%/NN
to/TO
14/CD
%/NN
power/NN
boost/NN
./.
Up/IN
to/TO
now/RB
,/,
the/DT
intense/JJ
competition/NN
between/IN
IBM/NNP
and/CC
Digital/NNP
has/VBZ
been/VBN
confined/VBN
largely/RB
to/TO
the/DT
broad/JJ
midrange/NN
of/IN
the/DT
computer/NN
market/NN
,/,
where/WRB
Digital/NNP
sought/VBD
to/TO
exploit/VB
IBM/NNP
's/POS
weaknesses/NNS
in/IN
networking/NN
./.
But/CC
Digital/NNP
's/POS
move/NN
into/IN
mainframes/NNS
will/MD
target/VB
IBM/NNP
's/POS
home/NN
turf/NN
,/,
where/WRB
it/PRP
has/VBZ
a/DT
commanding/JJ
70/CD
%/NN
share/NN
of/IN
the/DT
market/NN
./.
Digital/NNP
,/,
Maynard/NNP
,/,
Mass./NNP
,/,
insisted/VBD
yesterday/NN
that/IN
its/PRP$
marketing/NN
focus/NN
would/MD
differ/VB
sharply/RB
from/IN
IBM/NNP
's/POS
./.
``/``
This/DT
is/VBZ
not/RB
your/PRP$
father/NN
's/POS
mainframe/NN
,/,
''/''
said/VBD
Allan/NNP
McGuire/NNP
,/,
a/DT
Digital/NNP
spokesman/NN
./.
``/``
It/PRP
's/VBZ
a/DT
whole/JJ
new/JJ
generation/NN
,/,
''/''
he/PRP
said/VBD
./.
IBM/NNP
,/,
which/WDT
gets/VBZ
about/IN
half/NN
its/PRP$
revenue/NN
and/CC
more/JJR
than/IN
half/NN
its/PRP$
profit/NN
from/IN
mainframes/NNS
,/,
also/RB
announced/VBD
upgraded/VBN
operating/NN
system/NN
software/NN
that/IN
,/,
together/RB
with/IN
the/DT
new/JJ
hardware/NN
,/,
lets/VBZ
customers/NNS
do/VB
so-called/JJ
batch/NN
processing/NN
as/RB
much/JJ
as/IN
60/CD
%/NN
faster/RBR
./.
Batch/NN
processing/NN
is/VBZ
the/DT
high-volume/JJ
,/,
single-job/JJ
data/NN|NNS
processing/NN
that/IN
most/RBS
mainframes/NNS
typically/RB
chug/VBP
through/RB
at/IN
night/NN
,/,
such/JJ
as/IN
updating/VBG
accounts/NNS
at/IN
banks/NNS
./.
IBM/NNP
said/VBD
the/DT
16/CD
new/JJ
J/NNP
and/CC
JH/NNP
models/NNS
will/MD
generally/RB
be/VB
available/JJ
immediately/RB
,/,
though/IN
three/CD
wo/MD
n't/RB
ship/VB
until/IN
the/DT
third/JJ
quarter/NN
of/IN
next/JJ
year/NN
./.
Prices/NNS
on/IN
the/DT
larger/JJR
models/NNS
,/,
which/WDT
range/VBP
as/RB
high/JJ
as/IN
$/$
13/CD
million/CD
,/,
generally/RB
wo/MD
n't/RB
change/VB
./.
Small/JJ
models/NNS
,/,
whose/WP$
performance/NN
increased/VBD
as/RB
much/JJ
as/IN
46/CD
%/NN
,/,
will/MD
carry/VB
higher/JJR
prices/NNS
./.
Upgrades/NNS
to/TO
bigger/JJR
models/NNS
also/RB
will/MD
be/VB
costlier/JJR
./.
Digital/NNP
's/POS
VAX/NNP
9000/CD
mainframes/NNS
,/,
which/WDT
it/PRP
claimed/VBD
were/VBD
among/IN
the/DT
fastest/JJS
available/JJ
,/,
were/VBD
priced/VBN
from/IN
$/$
1.2/CD
million/CD
to/TO
$/$
3.9/CD
million/CD
,/,
sharply/RB
lower/JJR
than/IN
IBM/NNP
models/NNS
of/IN
comparable/JJ
power/NN
./.
The/DT
first/JJ
models/NNS
will/MD
ship/VB
in/IN
the/DT
spring/NN
,/,
with/IN
the/DT
largest/JJS
following/VBG
in/IN
the/DT
fall/NN
./.
Analysts/NNS
were/VBD
disappointed/JJ
that/IN
Digital/NNP
's/POS
new/JJ
line/NN
apparently/RB
wo/MD
n't/RB
contribute/VB
much/RB
to/TO
earnings/NNS
before/IN
the/DT
next/JJ
fiscal/JJ
year/NN
,/,
which/WDT
begins/VBZ
in/IN
July/NNP
./.
Jay/NNP
Stevens/NNP
of/IN
Dean/NNP
Witter/NNP
Reynolds/NNP
Inc./NNP
said/VBD
he/PRP
may/MD
cut/VB
his/PRP$
earnings/NNS
estimate/NN
for/IN
the/DT
current/JJ
fiscal/JJ
year/NN
because/IN
he/PRP
had/VBD
expected/VBN
at/IN
least/JJS
some/DT
mainframe/JJ
profit/NN
this/DT
year/NN
./.
But/CC
he/PRP
added/VBD
that/IN
he/PRP
expected/VBD
to/TO
raise/VB
his/PRP$
estimate/NN
for/IN
fiscal/JJ
1991/CD
at/IN
the/DT
same/JJ
time/NN
./.
After/IN
the/DT
announcement/NN
yesterday/NN
,/,
Digital/NNP
shares/NNS
gained/VBD
$/$
1.25/CD
to/TO
close/VB
at/IN
$/$
89.875/CD
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
IBM/NNP
shares/NNS
closed/VBD
at/IN
$/$
103/CD
,/,
down/RB
50/CD
cents/NNS
,/,
in/IN
Big/NNP
Board/NNP
trading/NN
./.
Analysts/NNS
have/VBP
predicted/VBN
strong/JJ
pent-up/JJ
demand/NN
for/IN
the/DT
new/JJ
line/NN
among/IN
Digital/NNP
's/POS
customers/NNS
./.
Large/JJ
Digital/NNP
buyers/NNS
say/VBP
the/DT
new/JJ
VAX/NNP
will/MD
let/VB
them/PRP
stay/VB
with/IN
Digital/NNP
when/WRB
they/PRP
need/VBP
the/DT
power/NN
of/IN
a/DT
mainframe/NN
,/,
instead/RB
of/IN
turning/VBG
to/TO
IBM/NNP
./.
``/``
I/PRP
'm/VBP
convinced/JJ
there/EX
's/VBZ
a/DT
huge/JJ
market/NN
for/IN
this/DT
machine/NN
,/,
''/''
said/VBD
Stephen/NNP
Smith/NNP
of/IN
PaineWebber/NNP
Inc/NNP
./.
Digital/NNP
also/RB
plans/VBZ
to/TO
compete/VB
fiercely/RB
with/IN
IBM/NNP
when/WRB
the/DT
giant/NN
's/POS
customers/NNS
are/VBP
computerizing/VBG
new/JJ
aspects/NNS
of/IN
their/PRP$
businesses/NNS
./.
Digital/NNP
,/,
however/RB
,/,
does/VBZ
n't/RB
expect/VB
to/TO
displace/VB
IBM/NNP
mainframes/NNS
that/WDT
are/VBP
already/RB
installed/VBN
at/IN
big/JJ
companies/NNS
./.
In/IN
addition/NN
to/TO
commercial/JJ
markets/NNS
,/,
Digital/NNP
's/POS
new/JJ
line/NN
targets/VBZ
the/DT
low/JJ
end/NN
of/IN
the/DT
engineering/NN
and/CC
scientific/JJ
supercomputer/NN
market/NN
,/,
when/WRB
it/PRP
's/VBZ
packaged/VBN
with/IN
an/DT
optional/JJ
supercharger/NN
,/,
known/VBN
as/IN
a/DT
vector/NN
processor/NN
./.
Digital/NNP
's/POS
push/NN
into/IN
mainframes/NNS
comes/VBZ
at/IN
a/DT
time/NN
when/WRB
its/PRP$
mainstay/NN
minicomputer/NN
line/NN
is/VBZ
under/IN
growing/VBG
pressure/NN
from/IN
smaller/JJR
personal/JJ
computers/NNS
and/CC
workstations/NNS
that/WDT
operate/VBP
on/IN
standard/JJ
operating/VBG
systems/NNS
rather/RB
than/IN
on/IN
the/DT
proprietary/JJ
systems/NNS
that/IN
older/JJR
minicomputers/NNS
use/VBP
./.
Although/IN
Digital/NNP
has/VBZ
staked/VBN
out/RP
a/DT
major/JJ
presence/NN
in/IN
the/DT
booming/VBG
workstation/NN
market/NN
,/,
profit/NN
margins/NNS
in/IN
that/DT
market/NN
are/VBP
much/RB
slimmer/JJR
than/IN
for/IN
mainframes/NNS
./.
The/DT
slow-growing/JJ
mainframe/NN
market/NN
also/RB
has/VBZ
shown/VBN
new/JJ
signs/NNS
of/IN
life/NN
lately/RB
./.
IBM/NNP
's/POS
mainframe/NN
sales/NNS
have/VBP
held/VBN
up/RB
better/RBR
than/IN
expected/VBN
this/DT
year/NN
,/,
with/IN
analysts/NNS
estimating/VBG
they/PRP
have/VBP
risen/VBN
10/CD
%/NN
to/TO
12/CD
%/NN
./.
``/``
Demand/NN
for/IN
these/DT
systems/NNS
has/VBZ
been/VBN
very/RB
,/,
very/RB
strong/JJ
,/,
''/''
said/VBD
Bill/NNP
Grabe/NNP
,/,
a/DT
senior/JJ
IBM/NNP
marketing/NN
executive/NN
./.
``/``
We/PRP
have/VBP
a/DT
good/JJ
strong/JJ
backlog/NN
for/IN
the/DT
fourth/JJ
quarter/NN
even/RB
without/IN
''/''
the/DT
systems/NNS
that/WDT
were/VBD
announced/VBN
yesterday/NN
./.
But/CC
the/DT
3090/CD
line/NN
is/VBZ
nearly/RB
five/CD
years/NNS
old/JJ
--/:
which/WDT
is/VBZ
getting/VBG
up/RP
there/RB
in/IN
mainframe/NN
years/NNS
--/:
and/CC
its/PRP$
growth/NN
is/VBZ
expected/VBN
to/TO
slow/VB
in/IN
1990/CD
./.
IBM/NNP
,/,
Armonk/NNP
,/,
N.Y./NNP
,/,
said/VBD
it/PRP
wanted/VBD
to/TO
bring/VB
out/RP
the/DT
mainframes/NNS
as/RB
soon/RB
as/IN
it/PRP
could/MD
to/TO
spark/VB
as/IN
many/JJ
sales/NNS
as/IN
possible/JJ
by/IN
the/DT
end/NN
of/IN
the/DT
year/NN
./.
The/DT
fourth/JJ
quarter/NN
is/VBZ
always/RB
IBM/NNP
's/POS
biggest/JJS
by/IN
far/RB
,/,
with/IN
most/JJS
sales/NNS
coming/VBG
in/IN
December/NNP
as/IN
customers/NNS
seek/VBP
to/TO
use/VB
budgets/NNS
before/IN
year/NN
end/NN
./.
Still/RB
,/,
Steve/NNP
Cohen/NNP
,/,
an/DT
analyst/NN
at/IN
SoundView/NNP
Financial/NNP
Group/NNP
Inc./NNP
,/,
said/VBD
,/,
``/``
I/PRP
do/VBP
n't/RB
see/VB
that/IN
this/DT
will/MD
be/VB
sufficient/JJ
to/TO
give/VB
IBM/NNP
a/DT
significant/JJ
kick/NN
in/IN
the/DT
fourth/JJ
quarter/NN
./.
''/''
IBM/NNP
has/VBZ
already/RB
indicated/VBN
it/PRP
will/MD
have/VB
problems/NNS
in/IN
the/DT
quarter/NN
,/,
partly/RB
because/IN
of/IN
a/DT
delay/NN
in/IN
shipping/VBG
a/DT
high-end/JJ
disk/NN
drive/NN
and/CC
partly/RB
because/IN
the/DT
strong/JJ
dollar/NN
will/MD
cut/VB
significantly/RB
the/DT
value/NN
of/IN
IBM/NNP
's/POS
overseas/JJ
earnings/NNS
when/WRB
translated/VBN
into/IN
dollars/NNS
./.
Some/DT
analysts/NNS
have/VBP
estimated/VBN
IBM/NNP
's/POS
fourth-quarter/JJ
per-share/JJ
earnings/NNS
will/MD
fall/VB
10/CD
%/NN
to/TO
$/$
3.57/CD
a/DT
share/NN
from/IN
$/$
3.97/CD
a/DT
share/NN
a/DT
year/NN
earlier/RB
./.
In/IN
addition/NN
to/TO
the/DT
new/JJ
mainframe/NN
hardware/NN
and/CC
software/NN
,/,
IBM/NNP
announced/VBD
a/DT
magnetic-tape/JJ
system/NN
for/IN
data/NNS
storage/NN
that/IN
it/PRP
said/VBD
occupies/VBZ
half/NN
as/IN
much/JJ
floor/NN
space/NN
as/IN
older/JJR
systems/NNS
but/CC
can/MD
store/VB
five/CD
times/NNS
as/IN
much/JJ
data/NNS
on/IN
a/DT
single/JJ
cartridge/NN
./.
That/DT
should/MD
help/VB
IBM/NNP
address/VB
the/DT
damage/NN
that/IN
a/DT
resurgent/JJ
Storage/NNP
Technology/NNP
Corp./NNP
has/VBZ
inflicted/VBN
in/IN
that/DT
market/NN
./.
Concord/NNP
Camera/NNP
Corp./NNP
completed/VBD
the/DT
acquisition/NN
of/IN
Peter/NNP
Bauser/NNP
G.m.b/NNP
./.
H./NNP
,/,
a/DT
West/JJ
German/JJ
photographic/JJ
products/NNS
distributor/NN
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Concord/NNP
is/VBZ
a/DT
camera/NN
and/CC
photographic/JJ
products/NNS
company/NN
./.
The/DT
Navy/NNP
awarded/VBD
Litton/NNP
Industries/NNPS
Inc./NNP
's/POS
Ingalls/NNP
Shipbuilding/NNP
division/NN
$/$
15.5/CD
million/CD
for/IN
shipyard/NN
services/NNS
on/IN
the/DT
Aegis/NNP
cruiser/NN
program/NN
./.
The/DT
award/NN
exercises/VBZ
a/DT
Navy/NNP
option/NN
to/TO
extend/VB
a/DT
contract/NN
given/VBN
in/IN
1984/CD
./.
The/DT
White/NNP
House/NNP
called/VBD
on/IN
Congress/NNP
to/TO
attach/VB
the/DT
proposed/VBN
capital-gains/NNS
tax/NN
cut/VBN
to/TO
its/PRP$
final/JJ
deficit-reduction/NN
bill/NN
,/,
but/CC
lawmakers/NNS
seem/VBP
likely/RB
to/TO
balk/VB
at/IN
the/DT
idea/NN
./.
Earlier/RB
this/DT
month/NN
,/,
the/DT
White/NNP
House/NNP
endorsed/VBD
stripping/VBG
the/DT
controversial/JJ
tax/NN
measure/NN
from/IN
the/DT
bill/NN
so/IN
that/IN
Congress/NNP
could/MD
pass/VB
quickly/RB
a/DT
``/``
clean/JJ
''/''
bill/NN
containing/VBG
only/JJ
provisions/NNS
specifically/RB
designed/VBN
to/TO
meet/VB
federal/JJ
budget/NN
targets/NNS
under/IN
the/DT
Gramm-Rudman/NNP
act/NN
./.
But/CC
now/RB
that/IN
Congress/NNP
has/VBZ
missed/VBN
the/DT
legal/JJ
deadline/NN
for/IN
meeting/VBG
the/DT
Gramm-Rudman/NNP
targets/NNS
,/,
the/DT
White/NNP
House/NNP
said/VBD
it/PRP
has/VBZ
returned/VBN
to/TO
its/PRP$
original/JJ
view/NN
that/IN
a/DT
capital-gains/NNS
cut/NN
should/MD
be/VB
part/NN
of/IN
the/DT
deficit-reduction/NN
bill/NN
,/,
on/IN
which/WDT
Congress/NNP
continues/VBZ
to/TO
work/VB
./.
``/``
If/IN
that/DT
does/VBZ
n't/RB
happen/VB
,/,
then/RB
we/PRP
press/VBP
forward/RB
on/IN
another/DT
vehicle/NN
and/CC
a/DT
separate/JJ
vote/NN
,/,
''/''
said/VBD
press/NN
secretary/NN
Marlin/NNP
Fitzwater/NNP
./.
On/IN
Capitol/NNP
Hill/NNP
,/,
though/RB
,/,
there/EX
does/VBZ
n't/RB
seem/VB
to/TO
be/VB
sufficient/JJ
sentiment/NN
to/TO
pair/VB
capital/NN
gains/NNS
and/CC
the/DT
deficit-reduction/NN
bill/NN
./.
Texas/NNP
Rep./NNP
William/NNP
Archer/NNP
,/,
the/DT
ranking/JJ
Republican/NNP
on/IN
the/DT
House/NNP
Ways/NNPS
and/CC
Means/NNPS
Committee/NNP
said/VBD
,/,
``/``
I/PRP
do/VBP
n't/RB
see/VB
how/WRB
we/PRP
have/VBP
the/DT
votes/NNS
''/''
to/TO
place/VB
a/DT
capital-gains/NNS
tax/NN
cut/NN
there/RB
./.
Meanwhile/RB
,/,
President/NNP
Bush/NNP
stepped/VBD
up/RP
his/PRP$
personal/JJ
lobbying/NN
for/IN
the/DT
capital-gains/NNS
tax/NN
cut/NN
./.
The/DT
White/NNP
House/NNP
said/VBD
he/PRP
plans/VBZ
to/TO
hold/VB
a/DT
series/NN
of/IN
private/JJ
White/NNP
House/NNP
meetings/NNS
,/,
mostly/RB
with/IN
Senate/NNP
Democrats/NNPS
,/,
to/TO
try/VB
to/TO
persuade/VB
lawmakers/NNS
to/TO
fall/VB
in/IN
line/NN
behind/IN
the/DT
tax/NN
cut/NN
./.
The/DT
first/JJ
meeting/NN
yesterday/NN
was/VBD
with/IN
10/CD
Senate/NNP
Democrats/NNPS
who/WP
have/VBP
expressed/VBN
an/DT
interest/NN
in/IN
cutting/VBG
the/DT
tax/NN
./.
According/VBG
to/TO
some/DT
who/WP
attended/VBD
,/,
the/DT
senators/NNS
argued/VBD
that/IN
the/DT
president/NN
should/MD
give/VB
the/DT
Democratic/JJ
leaders/NNS
in/IN
Congress/NNP
a/DT
victory/NN
of/IN
their/PRP$
own/JJ
to/TO
compensate/VB
them/PRP
for/IN
allowing/VBG
the/DT
president/NN
to/TO
win/VB
on/IN
the/DT
controversial/JJ
capital-gains/NNS
issue/NN
./.
Issues/NNS
discussed/VBN
in/IN
this/DT
context/NN
were/VBD
an/DT
increase/NN
in/IN
the/DT
minimum/JJ
wage/NN
and/CC
an/DT
increase/NN
in/IN
child-care/JJ
spending/NN
./.
The/DT
president/NN
was/VBD
said/VBN
to/TO
have/VB
been/VBN
noncommittal/JJ
./.
Toshiba/NNP
Corp./NNP
said/VBD
its/PRP$
new/JJ
French/JJ
marketing/NN
concern/NN
has/VBZ
started/VBN
operating/VBG
under/IN
the/DT
aegis/NN
of/IN
the/DT
company/NN
's/POS
West/JJ
German/JJ
subsidiary/NN
,/,
which/WDT
formerly/RB
handled/VBD
all/DT
sales/NNS
of/IN
Toshiba/NNP
electronic/JJ
products/NNS
in/IN
France/NNP
./.
A/DT
recent/JJ
change/NN
in/IN
French/JJ
law/NN
,/,
according/VBG
to/TO
Toshiba/NNP
,/,
permitted/VBD
formation/NN
of/IN
the/DT
semiconductor/NN
marketing/NN
arm/NN
in/IN
Paris/NNP
./.
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
Co./NNP
unveiled/VBD
new/JJ
optical/JJ
transmission/NN
systems/NNS
for/IN
data/NN|NNS
,/,
video/NN
and/CC
voice/NN
communications/NNS
./.
Two/CD
products/NNS
in/IN
what/WP
the/DT
telecommunications/NN
giant/NN
called/VBD
a/DT
new/JJ
generation/NN
of/IN
such/JJ
equipment/NN
are/VBP
available/JJ
now/RB
,/,
AT&T/NNP
said/VBD
,/,
and/CC
three/CD
others/NNS
will/MD
be/VB
introduced/VBN
in/IN
1990/CD
and/CC
1991/CD
./.
The/DT
products/NNS
are/VBP
aimed/VBN
at/IN
a/DT
market/NN
expected/VBN
to/TO
total/VB
more/JJR
than/IN
$/$
1/CD
billion/CD
a/DT
year/NN
in/IN
sales/NNS
by/IN
1995/CD
,/,
said/VBD
Morgan/NNP
Buchner/NNP
Jr./NNP
,/,
vice/NN
president/NN
of/IN
transmission/NN
systems/NNS
for/IN
AT&T/NNP
./.
The/DT
products/NNS
already/RB
available/JJ
are/VBP
cross-connect/JJ
systems/NNS
,/,
used/VBN
instead/RB
of/IN
mazes/NNS
of/IN
wiring/NN
to/TO
interconnect/VB
other/JJ
telecommunications/NN
equipment/NN
./.
This/DT
cuts/VBZ
down/RB
greatly/RB
on/IN
labor/NN
,/,
Mr./NNP
Buchner/NNP
said/VBD
./.
To/TO
be/VB
introduced/VBN
later/RB
are/VBP
a/DT
multiplexer/NN
,/,
which/WDT
will/MD
allow/VB
several/JJ
signals/NNS
to/TO
travel/VB
along/IN
a/DT
single/JJ
optical/JJ
line/NN
;/:
a/DT
light-wave/NN
system/NN
,/,
which/WDT
carries/VBZ
voice/NN
channels/NNS
;/:
and/CC
a/DT
network/NN
controller/NN
,/,
which/WDT
directs/VBZ
data/NN|NNS
flow/NN
through/IN
cross-connect/JJ
systems/NNS
./.
AT&T/NNP
said/VBD
the/DT
products/NNS
,/,
unlike/IN
previous/JJ
generations/NNS
,/,
will/MD
meet/VB
so-called/JJ
Sonet/NNP
compatability/NN
standards/NNS
,/,
which/WDT
AT&T/NNP
expects/VBZ
to/TO
be/VB
broadly/RB
adopted/VBN
./.
Sonet/NNP
,/,
or/CC
synchronous/JJ
optical/JJ
network/NN
,/,
products/NNS
have/VBP
more/JJR
capacity/NN
than/IN
earlier/JJR
models/NNS
./.
``/``
These/DT
products/NNS
are/VBP
the/DT
heart/NN
of/IN
our/PRP$
transmission-product/NN
line/NN
,/,
''/''
Mr./NNP
Buchner/NNP
said/VBD
./.
He/PRP
declined/VBD
to/TO
disclose/VB
specific/JJ
prices/NNS
,/,
but/CC
said/VBD
each/DT
product/NN
costs/VBZ
in/IN
the/DT
tens/NNS
of/IN
thousands/NNS
,/,
or/CC
even/RB
hundreds/NNS
of/IN
thousands/NNS
,/,
of/IN
dollars/NNS
./.
AT&T/NN
said/VBD
it/PRP
expects/VBZ
to/TO
beat/VB
to/TO
the/DT
marketplace/NN
two/CD
rivals/NNS
,/,
Northern/NNP
Telecom/NNP
Ltd./NNP
of/IN
Canada/NNP
and/CC
France/NNP
's/POS
Alcatel/NNP
N.V./NNP
,/,
which/WDT
also/RB
have/VBP
announced/VBN
Sonet-based/JJ
products/NNS
./.
AT&T/NNP
predicted/VBD
strong/JJ
growth/NN
in/IN
demand/NN
for/IN
such/JJ
products/NNS
./.
It/PRP
noted/VBD
that/IN
last/JJ
July/NNP
,/,
Nippon/NNP
Telegraph/NNP
&/CC
Telephone/NNP
Corp./NNP
of/IN
Japan/NNP
selected/VBD
AT&T/NNP
to/TO
supply/VB
$/$
154/CD
million/CD
of/IN
such/JJ
equipment/NN
over/IN
a/DT
four-year/JJ
period/NN
starting/VBG
next/JJ
year/NN
./.
Law/NN
firms/NNS
that/WDT
have/VBP
feasted/VBN
and/CC
grown/VBN
on/IN
the/DT
revenue/NN
from/IN
mergers/NNS
and/CC
acquisitions/NNS
work/NN
are/VBP
feeling/VBG
the/DT
squeeze/NN
as/IN
that/DT
work/NN
declines/VBZ
./.
The/DT
disarray/NN
in/IN
the/DT
junk-bond/NN
market/NN
that/WDT
began/VBD
last/JJ
month/NN
with/IN
a/DT
credit/NN
crunch/NN
at/IN
Campeau/NNP
Corp./NNP
and/CC
the/DT
failure/NN
of/IN
banks/NNS
to/TO
deliver/VB
financing/NN
for/IN
a/DT
leveraged/JJ
buy-out/NN
of/IN
United/NNP
Airlines/NNPS
parent/NN
UAL/NNP
Corp./NNP
has/VBZ
reverberated/VBN
through/IN
some/DT
of/IN
the/DT
nation/NN
's/POS
largest/JJS
law/NN
firms/NNS
./.
While/IN
it/PRP
is/VBZ
still/RB
too/RB
early/JJ
to/TO
tell/VB
whether/IN
the/DT
dearth/NN
of/IN
takeover/NN
activity/NN
is/VBZ
only/RB
temporary/JJ
,/,
many/JJ
lawyers/NNS
say/VBP
their/PRP$
firms/NNS
are/VBP
bracing/VBG
for/IN
lower/JJR
revenue/NN
from/IN
merger/NN
work/NN
,/,
which/WDT
has/VBZ
been/VBN
so/RB
lucrative/JJ
in/IN
the/DT
past/NN
./.
Much/RB
of/IN
this/DT
work/NN
was/VBD
done/VBN
for/IN
higher/JJR
fees/NNS
than/IN
other/JJ
legal/JJ
work/NN
and/CC
was/VBD
not/RB
generally/RB
billed/VBN
by/IN
the/DT
hour/NN
./.
If/IN
deals/NNS
take/VBP
longer/RBR
to/TO
complete/VB
and/CC
there/EX
are/VBP
fewer/JJR
of/IN
them/PRP
to/TO
do/VB
,/,
``/``
you/PRP
ca/MD
n't/RB
bill/VB
the/DT
same/JJ
kind/NN
of/IN
premium/NN
as/IN
when/WRB
deals/NNS
took/VBD
a/DT
few/JJ
weeks/NNS
from/IN
start/NN
to/TO
finish/VB
,/,
''/''
says/VBZ
one/CD
lawyer/NN
at/IN
a/DT
large/JJ
New/NNP
York/NNP
firm/NN
./.
``/``
We/PRP
're/VBP
planning/VBG
on/IN
a/DT
rip-roaring/JJ
year/NN
in/IN
1989/CD
,/,
but/CC
next/JJ
year/NN
we/PRP
'll/MD
be/VB
another/DT
story/NN
,/,
''/''
said/VBD
Robert/NNP
Freedman/NNP
,/,
a/DT
partner/NN
at/IN
Simpson/NNP
Thacher/NNP
&/CC
Bartlett/NNP
./.
``/``
We/PRP
're/VBP
settling/VBG
down/RB
to/TO
a/DT
less/RBR
active/JJ
period/NN
./.
''/''
Lawyers/NNS
at/IN
such/JJ
firms/NNS
as/IN
Sullivan/NNP
&/CC
Cromwell/NNP
;/:
Willkie/NNP
Farr/NNP
&/CC
Gallagher/NNP
;/:
Wachtell/NNP
,/,
Lipton/NNP
,/,
Rosen/NNP
&/CC
Katz/NNP
;/:
and/CC
Fried/NNP
,/,
Frank/NNP
,/,
Harris/NNP
,/,
Shriver/NNP
&/CC
Jacobson/NNP
all/DT
say/VBP
they/PRP
,/,
too/RB
,/,
have/VBP
experienced/VBN
a/DT
significant/JJ
slowdown/NN
,/,
particularly/RB
during/IN
the/DT
past/JJ
few/JJ
weeks/NNS
./.
``/``
Everyone/NN
is/VBZ
waiting/VBG
to/TO
see/VB
if/IN
deals/NNS
can/MD
be/VB
done/VBN
at/IN
sensible/NN
prices/NNS
and/CC
if/IN
money/NN
is/VBZ
available/JJ
,/,
''/''
said/VBD
Jack/NNP
Nusbaum/NNP
,/,
co-chairman/NN
of/IN
Willkie/NNP
Farr/NNP
./.
``/``
It/PRP
's/VBZ
hard/JJ
to/TO
know/VB
right/RB
now/RB
if/IN
the/DT
change/NN
is/VBZ
fundamental/JJ
or/CC
cyclical/JJ
./.
''/''
Some/DT
lawyers/NNS
say/VBP
the/DT
slump/NN
,/,
while/IN
more/RBR
obvious/JJ
in/IN
recent/JJ
weeks/NNS
,/,
began/VBD
earlier/RB
this/DT
year/NN
./.
Dennis/NNP
Block/NNP
,/,
a/DT
partner/NN
at/IN
the/DT
New/NNP
York/NNP
firm/NN
of/IN
Weil/NNP
,/,
Gotshal/NNP
&/CC
Manges/NNP
,/,
said/VBD
that/IN
in/IN
the/DT
first/JJ
eight/CD
months/NNS
of/IN
this/DT
year/NN
,/,
89/CD
hostile/JJ
offers/NNS
were/VBD
launched/VBN
,/,
compared/VBN
with/IN
157/CD
for/IN
the/DT
first/JJ
eight/CD
months/NNS
of/IN
What/WP
's/VBZ
more/JJR
,/,
he/PRP
said/VBD
,/,
``/``
transactions/NNS
are/VBP
taking/VBG
a/DT
much/RB
longer/JJR
time/NN
to/TO
conclude/VB
and/CC
many/JJ
fall/VBP
apart/RB
for/IN
lack/NN
of/IN
financing/NN
''/''
and/CC
more/RBR
stringent/JJ
scrutiny/NN
by/IN
state/NN
courts/NNS
./.
Lawyers/NNS
also/RB
say/VBP
an/DT
erratic/JJ
stock/NN
market/NN
and/CC
uncertain/JJ
financing/NN
conditions/NNS
have/VBP
sharply/RB
reduced/VBN
the/DT
number/NN
of/IN
lucrative/JJ
big/JJ
deals/NNS
likely/JJ
to/TO
be/VB
proposed/VBN
./.
Still/RB
,/,
some/DT
lawyers/NNS
say/VBP
the/DT
mergers/NNS
slowdown/NN
has/VBZ
n't/RB
affected/VBN
foreign/JJ
buyers/NNS
as/RB
much/RB
as/IN
domestic/JJ
ones/NNS
./.
``/``
We/PRP
just/RB
took/VBD
another/DT
floor/NN
for/IN
our/PRP$
London/NNP
offices/NNS
,/,
''/''
said/VBD
Joseph/NNP
Flom/NNP
of/IN
the/DT
New/NNP
York/NNP
firm/NN
of/IN
Skadden/NNP
,/,
Arps/NNP
,/,
Slate/NNP
,/,
Meagher/NNP
&/CC
Flom/NNP
./.
Davis/NNP
Polk/NNP
&/CC
Wardwell/NNP
also/RB
said/VBD
its/PRP$
international/JJ
clients/NNS
are/VBP
keeping/VBG
mergers/NNS
and/CC
acquisitions/NNS
partners/NNS
busy/JJ
./.
``/``
European/JJ
companies/NNS
are/VBP
looking/VBG
to/TO
buy/VB
American/JJ
ones/NNS
,/,
''/''
said/VBD
Henry/NNP
King/NNP
,/,
the/DT
managing/NN
partner/NN
at/IN
that/DT
firm/NN
./.
``/``
But/CC
the/DT
question/NN
is/VBZ
whether/IN
things/NNS
people/NNS
are/VBP
looking/VBG
at/IN
will/MD
actually/RB
surface/VB
in/IN
live/JJ
transactions/NNS
in/IN
light/NN
of/IN
the/DT
current/JJ
market/NN
conditions/NNS
./.
''/''
MURDER/NN
THREAT/NN
charged/VBN
in/IN
Haas/NNP
Securities/NNPS
Corp/NNP
./.
stock-manipulation/NN
trial/NN
./.
In/IN
the/DT
trial/NN
of/IN
former/JJ
Haas/NNP
Securities/NNPS
Chairman/NNP
Eugene/NNP
Laff/NNP
,/,
the/DT
defense/NN
accused/VBD
one/CD
of/IN
the/DT
government/NN
's/POS
chief/JJ
witnesses/NNS
of/IN
threatening/VBG
to/TO
kill/VB
Mr./NNP
Laff/NNP
./.
Mr./NNP
Laff/NNP
's/POS
attorney/NN
,/,
John/NNP
Lang/NNP
,/,
filed/VBD
a/DT
memorandum/NN
asking/VBG
that/IN
the/DT
trial/NN
record/NN
include/VB
a/DT
secretly/RB
taped/VBN
conversation/NN
in/IN
which/WDT
the/DT
witness/NN
,/,
Henry/NNP
Lorin/NNP
,/,
told/VBD
a/DT
Haas/NNP
stockbroker/NN
that/IN
Mr./NNP
Laff/NNP
should/MD
be/VB
killed/VBN
./.
The/DT
conversation/NN
was/VBD
taped/VBN
by/IN
federal/JJ
investigators/NNS
in/IN
what/WP
Mr./NNP
Lang/NNP
said/VBD
was/VBD
an/DT
effort/NN
to/TO
get/VB
Mr./NNP
Lorin/NNP
to/TO
implicate/VB
Mr./NNP
Laff/NNP
./.
In/IN
his/PRP$
opening/VBG
arguments/NNS
last/JJ
week/NN
in/IN
federal/JJ
court/NN
in/IN
New/NNP
York/NNP
,/,
Mr./NNP
Lang/NNP
told/VBD
the/DT
jury/NN
that/IN
Mr./NNP
Lorin/NNP
was/VBD
the/DT
``/``
real/JJ
master/NN
criminal/NN
''/''
behind/IN
the/DT
stock/NN
manipulation/NN
,/,
and/CC
that/IN
Mr./NNP
Laff/NNP
knew/VBD
nothing/NN
about/IN
it/PRP
./.
In/IN
March/NNP
,/,
Mr./NNP
Laff/NNP
was/VBD
indicted/VBN
on/IN
15/CD
counts/NNS
of/IN
conspiracy/NN
,/,
mail/NN
and/CC
securities/NNS
fraud/NN
,/,
and/CC
obstructing/VBG
an/DT
investigation/NN
by/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
./.
The/DT
government/NN
has/VBZ
charged/VBN
that/IN
Mr./NNP
Lorin/NNP
and/CC
Mr./NNP
Laff/NNP
were/VBD
part/NN
of/IN
a/DT
conspiracy/NN
to/TO
maintain/VB
the/DT
prices/NNS
of/IN
certain/JJ
stocks/NNS
at/IN
artificially/RB
high/JJ
prices/NNS
./.
Mr./NNP
Lorin/NNP
,/,
a/DT
stock/NN
promoter/NN
,/,
pleaded/VBD
guilty/JJ
to/TO
the/DT
stock-manipulation/NN
charges/NNS
in/IN
April/NNP
and/CC
agreed/VBD
to/TO
cooperate/VB
with/IN
the/DT
government/NN
's/POS
investigation/NN
of/IN
Mr./NNP
Laff/NNP
./.
During/IN
his/PRP$
cross/NN
examination/NN
of/IN
Mr./NNP
Lorin/NNP
,/,
Mr./NNP
Lang/NNP
read/VBD
from/IN
the/DT
transcripts/NNS
of/IN
a/DT
conversation/NN
that/WDT
was/VBD
taped/VBN
Oct./NNP
20/CD
,/,
1988/CD
./.
Stanley/NNP
Aslanian/NNP
,/,
the/DT
Haas/NNP
broker/NN
who/WP
agreed/VBD
to/TO
carry/VB
a/DT
hidden/JJ
microphone/NN
during/IN
the/DT
conversation/NN
,/,
also/RB
has/VBZ
pleaded/VBN
guilty/JJ
to/TO
conspiracy/NN
to/TO
commit/VB
securities/NNS
violations/NNS
in/IN
the/DT
stock/NN
manipulation/NN
and/CC
agreed/VBN
to/TO
cooperate/VB
./.
According/VBG
to/TO
the/DT
transcript/NN
,/,
Mr./NNP
Lorin/NNP
said/VBD
Mr./NNP
Laff/NNP
should/MD
be/VB
killed/VBN
after/IN
Mr./NNP
Aslanian/NNP
told/VBD
him/PRP
that/IN
information/NN
given/VBN
to/TO
Mr./NNP
Laff/NNP
by/IN
another/DT
conspirator/NN
could/MD
jeopardize/VB
the/DT
stock/NN
scheme/NN
./.
Mr./NNP
Lorin/NNP
then/RB
repeated/VBD
the/DT
threat/NN
,/,
and/CC
Mr./NNP
Aslanian/NNP
urged/VBD
him/PRP
not/RB
to/TO
say/VB
such/JJ
things/NNS
./.
From/IN
the/DT
parts/NNS
of/IN
the/DT
transcript/NN
read/VBN
by/IN
Mr./NNP
Lang/NNP
,/,
it/PRP
was/VBD
unclear/JJ
what/WP
exactly/RB
Mr./NNP
Lorin/NNP
feared/VBD
might/MD
happen/VB
./.
When/WRB
asked/VBN
for/IN
a/DT
copy/NN
of/IN
the/DT
transcript/NN
,/,
Mr./NNP
Lang/NNP
said/VBD
Judge/NNP
Thomas/NNP
P./NNP
Griesa/NNP
had/VBD
instructed/VBN
him/PRP
not/RB
to/TO
release/VB
it/PRP
or/CC
the/DT
memorandum/NN
./.
During/IN
the/DT
trial/NN
,/,
Mr./NNP
Lang/NNP
asked/VBD
Mr./NNP
Lorin/NNP
whether/IN
he/PRP
had/VBD
been/VBN
so/RB
upset/JJ
``/``
that/IN
you/PRP
considered/VBD
killing/VBG
Mr./NNP
Laff/NNP
?/.
.../:
Is/VBZ
n't/RB
it/PRP
true/JJ
that/IN
you/PRP
were/VBD
so/RB
worked/VBN
up/RP
that/IN
framing/VBG
Mr./NNP
Laff/NNP
for/IN
this/DT
crime/NN
was/VBD
the/DT
least/JJS
that/IN
you/PRP
planned/VBD
for/IN
him/PRP
?/.
''/''
Mr./NNP
Lorin/NNP
responded/VBD
,/,
``/``
No/UH
./.
''/''
When/WRB
Mr./NNP
Lang/NNP
asked/VBD
Mr./NNP
Lorin/NNP
whether/IN
he/PRP
had/VBD
taken/VBN
steps/NNS
to/TO
have/VB
Mr./NNP
Laff/NNP
killed/VBD
,/,
the/DT
witness/NN
again/RB
said/VBD
no/UH
./.
Peter/NNP
Lieb/NNP
,/,
the/DT
assistant/JJ
U.S./NNP
attorney/NN
prosecuting/VBG
the/DT
case/NN
,/,
declined/VBD
to/TO
comment/VB
on/IN
the/DT
trial/NN
./.
TRUSTEE/NN
WHO/WP
MONITORED/VBD
settlement/NN
payments/NNS
to/TO
Dalkon/NNP
Shield/NNP
claimants/NNS
quits/VBZ
./.
Stephen/NNP
A./NN
Saltzburg/NNP
,/,
one/CD
of/IN
five/CD
trustees/NNS
appointed/VBN
to/TO
monitor/VB
payments/NNS
to/TO
women/NNS
injured/VBN
by/IN
the/DT
Dalkon/NNP
Shield/NNP
intrauterine/JJ
contraceptive/NN
,/,
resigned/VBD
,/,
citing/VBG
personal/JJ
reasons/NNS
./.
Mr./NNP
Saltzburg/NNP
,/,
who/WP
teaches/VBZ
evidence/NN
at/IN
the/DT
University/NNP
of/IN
Virginia/NNP
School/NNP
of/IN
Law/NNP
and/CC
was/VBD
a/DT
deputy/NN
assistant/NN
attorney/NN
general/NN
in/IN
the/DT
U.S./NNP
Justice/NNP
Department/NNP
until/IN
August/NNP
,/,
submitted/VBD
his/PRP$
resignation/NN
earlier/RBR
this/DT
month/NN
to/TO
federal/JJ
Judge/NNP
Robert/NNP
R./NNP
Merhige/NNP
Jr./NNP
,/,
in/IN
Richmond/NNP
,/,
Va/NNP
./.
Judge/NNP
Merhige/NNP
is/VBZ
overseeing/VBG
the/DT
bankruptcy-law/NN
reorganization/NN
of/IN
A.H./NNP
Robins/NNP
Co./NNP
,/,
the/DT
company/NN
that/WDT
manufactured/VBD
the/DT
shield/NN
./.
In/IN
a/DT
letter/NN
Monday/NNP
to/TO
Mr./NNP
Saltzburg/NNP
,/,
the/DT
judge/NN
said/VBD
he/PRP
would/MD
``/``
reluctantly/RB
''/''
accept/VB
the/DT
resignation/NN
./.
The/DT
$/$
2.38/CD
billion/CD
Dalkon/NNP
Shield/NNP
Claimants/NNPS
Trust/NNP
was/VBD
established/VBN
as/IN
part/NN
of/IN
A.H./NNP
Robins/NNP
'/POS
bankruptcy-reorganization/NN
plan/NN
to/TO
resolve/VB
injury/NN
claims/NNS
arising/VBG
from/IN
use/NN
of/IN
the/DT
shield/NN
./.
American/NNP
Home/NNP
Products/NNPS
Corp./NNP
proposes/VBZ
to/TO
acquire/VB
the/DT
company/NN
./.
The/DT
remaining/VBG
four/CD
trustees/NNS
on/IN
the/DT
Claimants/NNPS
Trust/NNP
have/VBP
60/CD
days/NNS
to/TO
nominate/VB
a/DT
successor/NN
to/TO
Mr./NNP
Saltzburg/NNP
./.
Judge/NNP
Merhige/NNP
will/MD
make/VB
the/DT
appointment/NN
./.
CHICAGO/NNP
LAW/NN
FIRM/NN
recruits/VBZ
American/NNP
Express/NNP
Co./NNP
vice/NN
president/NN
:/:
Coffield/NNP
Ungaretti/NNP
Harris/NNP
&/CC
Slavin/NNP
brought/VBD
in/RBR
Howard/RP
A./NN
Menell/NNP
as/IN
a/DT
partner/NN
in/IN
its/PRP$
Washington/NNP
,/,
D.C./NNP
,/,
office/NN
,/,
which/WDT
opened/VBN
Oct./NNP
1/CD
./.
For/IN
the/DT
past/JJ
six/CD
years/NNS
,/,
Mr./NNP
Menell/NNP
,/,
43/CD
years/NNS
old/JJ
,/,
served/VBD
as/IN
vice/NN
president/NN
for/IN
government/NN
affairs/NNS
at/IN
American/NNP
Express/NNP
./.
He/PRP
previously/RB
was/VBD
staff/NN
director/NN
and/CC
counsel/NN
for/IN
the/DT
Senate/NNP
committee/NN
on/IN
banking/NN
,/,
housing/NN
and/CC
urban/JJ
affairs/NNS
./.
The/DT
other/JJ
lawyer/NN
in/IN
the/DT
office/NN
is/VBZ
partner/NN
Robert/NNP
A./NN
Macari/NNP
,/,
the/DT
firm/NN
's/POS
legislative/JJ
director/NN
./.
THE/DT
PHILADELPHIA/NNP
law/NN
firm/NN
of/IN
Ballard/NNP
,/,
Spahr/NNP
,/,
Andrews/NNP
&/CC
Ingersoll/NNP
said/VBD
three/CD
partners/NNS
have/VBP
joined/VBN
its/PRP$
business/NN
and/CC
finance/NN
department/NN
./.
John/NNP
Ake/NNP
,/,
48/CD
,/,
a/DT
former/JJ
vice-president/NN
in/IN
charge/NN
of/IN
legal/JJ
compliance/NN
at/IN
American/NNP
Capital/NNP
Management/NNP
&/CC
Research/NNP
Inc./NNP
,/,
in/IN
Houston/NNP
,/,
will/MD
join/VB
Ballard/NNP
Spahr/NNP
's/POS
corporate-securities/JJ
practice/NN
./.
Kent/NNP
Walker/NNP
,/,
45/CD
,/,
a/DT
former/JJ
partner/NN
at/IN
the/DT
Philadelphia/NNP
law/NN
firm/NN
of/IN
Mesirov/NNP
,/,
Gelman/NNP
,/,
Jaffe/NNP
,/,
Cramer/NNP
&/CC
Jamieson/NNP
,/,
will/MD
specialize/VB
in/IN
antitrust/JJ
,/,
real/JJ
estate/NN
and/CC
mergers/NNS
and/CC
acquisitions/NNS
./.
Richard/NNP
L./NNP
Sherman/NNP
,/,
42/CD
,/,
will/MD
advise/VB
midsized/JJ
businesses/NNS
./.
Mr./NNP
Sherman/NNP
is/VBZ
former/JJ
deputy/NN
general/JJ
counsel/NN
for/IN
SmithKline/NNP
Beckman/NNP
Corp./NNP
,/,
in/IN
Philadelphia/NNP
,/,
now/RB
SmithKline/NNP
Beecham/NNP
PLC/NNP
,/,
in/IN
London/NNP
./.
Delmed/NNP
Inc./NNP
's/POS
top/JJ
two/CD
officers/NNS
resigned/VBD
and/CC
were/VBD
succeeded/VBN
by/IN
executives/NNS
of/IN
Fresenius/NNP
USA/NNP
Inc./NNP
and/CC
its/PRP$
parent/NN
,/,
Fresenius/NNP
AG/NNP
,/,
a/DT
major/JJ
Delmed/NNP
holder/NN
that/WDT
has/VBZ
been/VBN
negotiating/VBG
to/TO
acquire/VB
a/DT
controlling/JJ
stake/NN
./.
In/IN
addition/NN
,/,
Delmed/NNP
,/,
which/WDT
makes/VBZ
and/CC
sells/VBZ
a/DT
dialysis/NN
solution/NN
used/VBN
in/IN
treating/VBG
kidney/NN
diseases/NNS
,/,
said/VBD
negotiations/NNS
about/IN
pricing/NN
had/VBD
collapsed/VBN
between/IN
it/PRP
and/CC
a/DT
major/JJ
distributor/NN
,/,
National/NNP
Medical/NNP
Care/NNP
Inc/NNP
./.
Delmed/NNP
said/VBD
Robert/NNP
S./NNP
Ehrlich/NNP
resigned/VBD
as/IN
chairman/NN
,/,
president/NN
and/CC
chief/JJ
executive/NN
./.
Mr./NNP
Ehrlich/NNP
will/MD
continue/VB
as/IN
a/DT
director/NN
and/CC
a/DT
consultant/NN
./.
Leslie/NNP
I./NN
Shapiro/NNP
,/,
chief/JJ
operating/VBG
officer/NN
and/CC
chief/JJ
financial/JJ
officer/NN
,/,
also/RB
resigned/VBN
,/,
the/DT
company/NN
said/VBD
./.
Mr./NNP
Ehrlich/NNP
was/VBD
succeeded/VBN
as/IN
chairman/NN
by/IN
Gerd/NNP
Krick/NNP
,/,
a/DT
director/NN
of/IN
Fresenius/NNP
,/,
a/DT
West/JJ
German/JJ
pharmaceutical/JJ
concern/NN
./.
Ben/NNP
Lipps/NNP
,/,
president/NN
of/IN
Fresenius/NNP
USA/NNP
,/,
was/VBD
named/VBN
president/NN
,/,
chief/JJ
executive/NN
and/CC
chief/JJ
operating/VBG
officer/NN
./.
None/NN
of/IN
the/DT
officials/NNS
was/VBD
available/JJ
for/IN
comment/NN
./.
In/IN
trading/NN
on/IN
the/DT
American/NNP
Stock/NNP
Exchange/NNP
,/,
Delmed/NNP
closed/VBD
at/IN
50/CD
cents/NNS
,/,
down/RB
6.25/CD
cents/NNS
./.
Fresenius/NNP
owns/VBZ
about/IN
42/CD
%/NN
of/IN
Delmed/NNP
's/POS
fully/RB
diluted/JJ
common/JJ
stock/NN
./.
The/DT
two/CD
companies/NNS
have/VBP
been/VBN
discussing/VBG
a/DT
transaction/NN
under/IN
which/WDT
Fresenius/NNP
would/MD
buy/VB
Delmed/NNP
stock/NN
for/IN
cash/NN
to/TO
bring/VB
its/PRP$
beneficial/JJ
ownership/NN
to/TO
between/IN
70/CD
%/NN
and/CC
80/CD
%/NN
of/IN
Delmed/NNP
's/POS
fully/RB
diluted/JJ
common/JJ
stock/NN
./.
The/DT
transaction/NN
also/RB
would/MD
combine/VB
Fresenius/NNP
USA/NNP
and/CC
Delmed/NNP
./.
Under/IN
the/DT
proposal/NN
,/,
Delmed/NNP
would/MD
issue/VB
about/IN
123.5/CD
million/CD
additional/JJ
Delmed/NNP
common/JJ
shares/NNS
to/TO
Fresenius/NNP
at/IN
an/DT
average/JJ
price/NN
of/IN
about/IN
65/CD
cents/NNS
a/DT
share/NN
,/,
though/IN
under/IN
no/DT
circumstances/NNS
more/JJR
than/IN
75/CD
cents/NNS
a/DT
share/NN
./.
Yesterday/NN
,/,
Delmed/NNP
said/VBD
it/PRP
``/``
continues/VBZ
to/TO
explore/VB
the/DT
possibility/NN
of/IN
a/DT
combination/NN
with/IN
Fresenius/NNP
USA/NNP
./.
''/''
It/PRP
added/VBD
that/IN
it/PRP
is/VBZ
apparent/JJ
that/IN
any/DT
terms/NNS
of/IN
a/DT
combination/NN
``/``
would/MD
be/VB
substantially/RB
less/RBR
favorable/JJ
than/IN
those/DT
previously/RB
announced/VBN
./.
''/''
While/IN
the/DT
discussions/NNS
between/IN
Delmed/NNP
and/CC
National/NNP
Medical/NNP
Care/NNP
have/VBP
been/VBN
discontinued/VBN
,/,
Delmed/NNP
will/MD
continue/VB
to/TO
supply/VB
dialysis/NN
products/NNS
through/IN
National/NNP
Medical/NNP
after/IN
their/PRP$
exclusive/JJ
agreement/NN
ends/NNS
in/IN
March/NNP
1990/CD
,/,
Delmed/NNP
said/VBD
./.
In/IN
addition/NN
,/,
Delmed/NNP
is/VBZ
exploring/VBG
distribution/NN
arrangements/NNS
with/IN
Fresenius/NNP
USA/NNP
,/,
Delmed/NNP
said/VBD
./.
Philip/NNP
L./NNP
Hall/NNP
,/,
president/NN
of/IN
J./NNP
Lawrence/NNP
Hall/NNP
Co./NNP
,/,
Nashua/NNP
,/,
was/VBD
named/VBN
a/DT
director/NN
of/IN
this/DT
thrift/NN
holding/VBG
company/NN
,/,
filling/VBG
a/DT
vacancy/NN
./.
Kennametal/NNP
Inc./NNP
said/VBD
it/PRP
intends/VBZ
to/TO
acquire/VB
J&L/NNP
America/NNP
Inc./NNP
for/IN
$/$
44/CD
million/CD
plus/IN
a/DT
consideration/NN
of/IN
as/RB
much/JJ
as/IN
an/DT
additional/JJ
$/$
12/CD
million/CD
,/,
payable/JJ
over/IN
five/CD
years/NNS
./.
Kennametal/NNP
is/VBZ
a/DT
carbide-products/NNS
and/CC
cutting-tools/NNS
company/NN
./.
J&L/NN
,/,
whose/WP$
principal/JJ
offices/NNS
are/VBP
in/IN
Detroit/NNP
,/,
is/VBZ
a/DT
mail-order/JJ
distributer/NN
of/IN
industrial/JJ
tools/NNS
and/CC
supplies/NNS
./.
The/DT
acquisition/NN
is/VBZ
subject/JJ
to/TO
approval/NN
by/IN
Kennametal/NNP
's/POS
board/NN
./.
Genentech/NNP
Inc./NNP
said/VBD
third-quarter/JJ
profit/NN
more/RBR
than/IN
doubled/VBD
to/TO
$/$
11.4/CD
million/CD
,/,
or/CC
13/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
a/DT
depressed/JJ
1988/CD
third-quarter/JJ
performance/NN
of/IN
$/$
5.3/CD
million/CD
,/,
or/CC
six/CD
cents/NNS
a/DT
share/NN
./.
Revenue/NN
rose/VBD
23/CD
%/NN
to/TO
$/$
100/CD
million/CD
from/IN
$/$
81.6/CD
million/CD
./.
Net/JJ
product/NN
sales/NNS
accounted/VBD
for/IN
$/$
76/CD
million/CD
,/,
up/RB
from/IN
$/$
57.5/CD
million/CD
a/DT
year/NN
earlier/RB
./.
Sales/NNS
of/IN
the/DT
heart/NN
drug/NN
TPA/NNP
were/VBD
$/$
43.6/CD
million/CD
,/,
better/JJR
than/IN
last/JJ
year/NN
's/POS
depressed/JJ
third/JJ
period/NN
when/WRB
the/DT
company/NN
sold/VBD
just/RB
$/$
29.1/CD
million/CD
of/IN
the/DT
drug/NN
./.
But/CC
TPA/NNP
sales/NNS
fell/VBD
below/IN
levels/NNS
for/IN
this/DT
year/NN
's/POS
first/JJ
and/CC
second/JJ
quarter/NN
sales/NNS
of/IN
$/$
48/CD
million/CD
,/,
cooling/VBG
investors/NNS
./.
Genentech/NNP
stock/NN
fell/VBD
12.5/CD
cents/NNS
in/IN
trading/NN
yesterday/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
to/TO
$/$
20.125/CD
./.
In/IN
the/DT
nine/CD
months/NNS
,/,
net/JJ
income/NN
slid/VBD
21/CD
%/NN
to/TO
$/$
28.4/CD
million/CD
,/,
or/CC
33/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
36/CD
million/CD
,/,
or/CC
42/CD
cents/NNS
a/DT
share/NN
./.
Revenues/NNS
climbed/VBD
18/CD
%/NN
to/TO
$/$
289/CD
million/CD
from/IN
$/$
245.3/CD
million/CD
./.
``/``
We/PRP
continue/VBP
to/TO
be/VB
on/IN
target/NN
for/IN
.../:
increasing/VBG
TPA/NNP
sales/NNS
20/CD
%/NN
to/TO
25/CD
%/NN
this/DT
year/NN
,/,
''/''
said/VBD
founder/NN
and/CC
Chief/NNP
Executive/NNP
Officer/NNP
Robert/NNP
Swanson/NNP
./.
But/CC
some/DT
analysts/NNS
remain/VBP
sour/JJ
on/IN
the/DT
company/NN
./.
``/``
TPA/NNP
sales/NNS
are/VBP
down/RB
quarter/NN
to/TO
quarter/NN
./.
Expenses/NNS
are/VBP
flat/JJ
and/CC
that/DT
's/VBZ
a/DT
good/JJ
sign/NN
./.
There/EX
's/VBZ
contract/NN
revenue/NN
from/IN
{/(
limited/JJ
research/NN
and/CC
development/NN
partnerships/NNS
./.
But/CC
I/PRP
still/RB
think/VBP
the/DT
fundamentals/NNS
are/VBP
poor/JJ
,/,
''/''
said/VBD
Denise/NNP
Gilbert/NNP
,/,
an/DT
analyst/NN
with/IN
Montgomery/NNP
Securities/NNPS
in/IN
San/NNP
Francisco/NNP
./.
Genentech/NNP
faces/VBZ
competition/NN
in/IN
the/DT
cardiac-drug/JJ
market/NN
from/IN
SmithKline/NNP
Beecham/NNP
PLC/NNP
's/POS
heart/NN
drug/NN
Eminase/NNP
,/,
expected/VBN
to/TO
receive/VB
market/NN
approval/NN
shortly/RB
./.
And/CC
Genentech/NNP
is/VBZ
n't/RB
likely/JJ
to/TO
have/VB
any/DT
new/JJ
products/NNS
ready/JJ
for/IN
market/NN
until/IN
at/IN
least/JJS
1992/CD
,/,
Ms./NNP
Gilbert/NNP
added/VBD
./.
``/``
The/DT
company/NN
's/POS
stock/NN
is/VBZ
trading/VBG
at/IN
40/CD
times/NNS
next/JJ
year/NN
's/POS
numbers/NNS
,/,
and/CC
that/DT
's/VBZ
too/RB
much/JJ
,/,
''/''
she/PRP
said/VBD
./.
On/IN
the/DT
plus/JJ
side/NN
,/,
Genentech/NN
is/VBZ
benefiting/VBG
from/IN
a/DT
lower/JJR
tax/NN
rate/NN
due/JJ
to/TO
its/PRP$
research/NN
outlays/NNS
,/,
giving/VBG
a/DT
boost/NN
to/TO
earnings/NNS
,/,
she/PRP
said/VBD
./.
THE/DT
AMERICAN/NNP
CANCER/NNP
SOCIETY/NNP
'S/POS
1988/CD
costs/NNS
of/IN
fund/NN
raising/NN
and/CC
administration/NN
were/VBD
$/$
72.4/CD
million/CD
,/,
or/CC
23.2/CD
%/NN
of/IN
its/PRP$
revenue/NN
./.
A/DT
chart/NN
in/IN
last/JJ
Friday/NNP
's/POS
special/JJ
report/NN
on/IN
personal/JJ
finance/NN
contained/VBD
an/DT
incorrect/JJ
figure/NN
supplied/VBN
by/IN
NonProfit/NNP
Times/NNPS
,/,
a/DT
monthly/JJ
newspaper/NN
covering/VBG
charities/NNS
./.
Personal/JJ
Finance/NN
A/DT
Special/JJ
Report/NN
--/:
Give/VB
and/CC
Take/VB
:/:
Many/JJ
Fund-Raisers/NNS
Think/VBP
Charity/NN
Begins/VBZ
at/IN
Home/NN
--/:
Their/PRP$
Home/NN
''/''
--/:
WSJ/NNP
Oct./NNP
20/CD
,/,
1989/CD
}/)
Ryder/NNP
System/NNP
Inc./NNP
posted/VBD
a/DT
third-quarter/JJ
net/JJ
loss/NN
of/IN
$/$
27.6/CD
million/CD
,/,
because/IN
of/IN
an/DT
expected/JJ
$/$
57/CD
million/CD
after-tax/JJ
charge/NN
and/CC
continued/JJ
weakness/NN
in/IN
the/DT
company/NN
's/POS
truck-rental/JJ
business/NN
./.
The/DT
loss/NN
,/,
which/WDT
is/VBZ
38/CD
cents/NNS
a/DT
share/NN
,/,
is/VBZ
the/DT
transportation/NN
services/NNS
concern/NN
's/POS
first/JJ
quarterly/JJ
setback/NN
in/IN
more/JJR
than/IN
a/DT
decade/NN
and/CC
compares/VBZ
with/IN
net/JJ
income/NN
of/IN
$/$
55.3/CD
million/CD
,/,
or/CC
68/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
year-ago/JJ
period/NN
./.
The/DT
previous/JJ
year/NN
's/POS
third/JJ
quarter/NN
included/VBD
gains/NNS
on/IN
the/DT
sale/NN
of/IN
aircraft/NN
by/IN
the/DT
company/NN
's/POS
Aviation/NNP
Leasing/NNP
&/CC
Services/NNPS
Division/NNP
./.
Revenue/NN
was/VBD
flat/JJ
at/IN
$/$
1.3/CD
billion/CD
./.
The/DT
latest/JJS
quarter/NN
's/POS
after-tax/JJ
charge/NN
--/:
which/WDT
is/VBZ
75/CD
cents/NNS
a/DT
share/NN
--/:
was/VBD
related/JJ
to/TO
adjustments/NNS
to/TO
reserves/NNS
for/IN
workers/NNS
'/POS
compensation/NN
claims/NNS
;/:
reductions/NNS
in/IN
vehicle/NN
fleets/NNS
,/,
staff/NN
and/CC
facilities/NNS
;/:
and/CC
writedowns/NNS
of/IN
assets/NNS
./.
Although/IN
Ryder/NNP
did/VBD
n't/RB
break/VB
out/RP
the/DT
charge/NN
,/,
analysts/NNS
estimated/VBD
that/IN
the/DT
majority/NN
of/IN
the/DT
$/$
57/CD
million/CD
was/VBD
linked/VBN
to/TO
workers/NNS
'/POS
compensation/NN
reserves/NNS
and/CC
anticipated/JJ
losses/NNS
on/IN
the/DT
disposal/NN
of/IN
trucks/NNS
./.
Many/JJ
analysts/NNS
said/VBD
they/PRP
were/VBD
n't/RB
surprised/JJ
that/IN
problems/NNS
in/IN
many/JJ
of/IN
Ryder/NNP
's/POS
lines/NNS
of/IN
business/NN
continued/VBD
to/TO
plague/VB
the/DT
company/NN
./.
``/``
It/PRP
pretty/RB
much/RB
confirms/VBZ
what/WP
we/PRP
had/VBD
been/VBN
expecting/VBG
,/,
''/''
said/VBD
Anthony/NNP
Hatch/NNP
,/,
an/DT
analyst/NN
at/IN
PaineWebber/NNP
Inc/NNP
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
Ryder/NNP
closed/VBD
at/IN
$/$
22.25/CD
,/,
down/RB
37.5/CD
cents/NNS
./.
M./NNP
Anthony/NNP
Burns/NNP
,/,
Ryder/NNP
's/POS
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
,/,
said/VBD
:/:
``/``
We/PRP
're/VBP
constantly/RB
trying/VBG
to/TO
find/VB
ways/NNS
to/TO
regain/VB
the/DT
earnings/NNS
momentum/NN
./.
But/CC
we/PRP
're/VBP
still/RB
at/IN
the/DT
beginning/VBG
stages/NNS
of/IN
some/DT
of/IN
these/DT
changes/NNS
./.
''/''
He/PRP
said/VBD
the/DT
fourth/JJ
quarter/NN
will/MD
be/VB
``/``
challenging/JJ
,/,
''/''
and/CC
maintained/VBD
his/PRP$
conservative/JJ
forecast/NN
that/IN
1990/CD
``/``
wo/MD
n't/RB
be/VB
a/DT
barn/NN
burner/NN
./.
''/''
In/IN
the/DT
nine/CD
months/NNS
,/,
net/JJ
income/NN
fell/VBD
79/CD
%/NN
to/TO
$/$
31.1/CD
million/CD
,/,
or/CC
33/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
149.3/CD
million/CD
,/,
or/CC
$/$
1.82/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
./.
Revenue/NN
rose/VBD
slightly/RB
to/TO
$/$
3.8/CD
billion/CD
from/IN
$/$
3.7/CD
billion/CD
./.
Robert/NNP
L./NNP
Wood/NNP
,/,
37-year-old/JJ
chief/JJ
financial/JJ
officer/NN
,/,
was/VBD
named/VBN
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
of/IN
this/DT
independent/JJ
power/NN
producer/NN
,/,
succeeding/VBG
Raymond/NNP
L./NNP
Hixson/NNP
,/,
63/CD
./.
Mr./NNP
Hixson/NNP
,/,
who/WP
resigned/VBD
effective/JJ
Jan./NNP
1/CD
for/IN
health/NN
reasons/NNS
,/,
remains/VBZ
a/DT
director/NN
./.
Advanced/NNP
Medical/NNP
Technologies/NNPS
Inc./NNP
said/VBD
it/PRP
purchased/VBD
93/CD
%/NN
of/IN
a/DT
unit/NN
of/IN
Henley/NNP
Group/NNP
Inc/NNP
./.
Advanced/NNP
Medical/NNP
paid/VBD
$/$
106/CD
million/CD
in/IN
cash/NN
for/IN
its/PRP$
share/NN
in/IN
a/DT
unit/NN
of/IN
Henley/NN
's/POS
Fisher/NNP
Scientific/NNP
subsidiary/NN
./.
The/DT
unit/NN
makes/VBZ
intravenous/JJ
pumps/NNS
used/VBN
by/IN
hospitals/NNS
and/CC
had/VBD
more/JJR
than/IN
$/$
110/CD
million/CD
in/IN
sales/NNS
last/JJ
year/NN
,/,
according/VBG
to/TO
Advanced/NNP
Medical/NNP
./.
Maxicare/NNP
Health/NNP
Plans/NNPS
Inc./NNP
,/,
operating/VBG
under/IN
Chapter/NN
11/CD
bankrupty-law/NN
protection/NN
,/,
outlined/VBD
terms/NNS
of/IN
its/PRP$
reorganization/NN
plan/NN
that/WDT
calls/VBZ
for/IN
creditors/NNS
and/CC
shareholders/NNS
to/TO
receive/VB
at/IN
least/JJS
$/$
78.8/CD
million/CD
in/IN
cash/NN
and/CC
$/$
67/CD
million/CD
face/NN
amount/NN
of/IN
10-year/JJ
,/,
13.5/CD
%/NN
notes/NNS
./.
The/DT
plan/NN
,/,
outlined/VBN
in/IN
a/DT
filing/NN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
,/,
also/RB
calls/VBZ
for/IN
creditors/NNS
and/CC
shareholders/NNS
to/TO
receive/VB
common/JJ
stock/NN
and/CC
warrants/NNS
in/IN
the/DT
new/JJ
company/NN
./.
The/DT
health-maintenance/NN
concern/NN
said/VBD
it/PRP
reached/VBD
the/DT
agreement/NN
with/IN
its/PRP$
court-appointed/JJ
creditors/NNS
'/POS
committees/NNS
Sept./NNP
28/CD
,/,
and/CC
intends/VBZ
to/TO
submit/VB
the/DT
plan/NN
to/TO
the/DT
bankruptcy/NN
court/NN
in/IN
November/NNP
./.
Maxicare/NNP
,/,
which/WDT
filed/VBD
for/IN
bankruptcy/NN
protection/NN
March/NNP
16/CD
,/,
has/VBZ
total/JJ
debt/NN
of/IN
$/$
750/CD
million/CD
./.
The/DT
company/NN
has/VBZ
promptly/RB
paid/VBN
all/DT
its/PRP$
expenses/NNS
and/CC
obligations/NNS
since/IN
March/NNP
16/CD
,/,
a/DT
Maxicare/NNP
spokesman/NN
said/VBD
./.
General/JJ
unsecured/JJ
creditors/NNS
of/IN
Maxicare/NNP
's/POS
continuing/VBG
operations/NNS
initially/RB
will/MD
receive/VB
$/$
47/CD
million/CD
in/IN
cash/NN
,/,
$/$
35/CD
million/CD
face/NN
amount/NN
of/IN
senior/JJ
notes/NNS
,/,
and/CC
49/CD
%/NN
of/IN
the/DT
new/JJ
company/NN
's/POS
stock/NN
./.
Those/DT
creditors/NNS
,/,
whose/WP$
claims/NNS
are/VBP
estimated/VBN
at/IN
about/IN
$/$
200/CD
million/CD
,/,
include/VBP
doctors/NNS
and/CC
hospitals/NNS
./.
General/JJ
unsecured/JJ
creditors/NNS
of/IN
Maxicare/NNP
's/POS
discontinued/VBN
operations/NNS
,/,
whose/WP$
claims/NNS
total/VBP
$/$
110/CD
million/CD
,/,
initially/RB
will/MD
receive/VB
$/$
17.8/CD
million/CD
in/IN
cash/NN
and/CC
$/$
10/CD
million/CD
in/IN
senior/JJ
notes/NNS
./.
Maxicare/NNP
's/POS
public/JJ
shareholders/NNS
will/MD
receive/VB
2/CD
%/NN
of/IN
the/DT
new/JJ
company/NN
's/POS
stock/NN
and/CC
warrants/NNS
entitling/VBG
them/PRP
to/TO
acquire/VB
as/RB
much/RB
as/IN
an/DT
additional/JJ
5/CD
%/NN
of/IN
the/DT
stock/NN
on/IN
a/DT
fully-diluted/JJ
basis/NN
./.
General/JJ
unsecured/JJ
creditors/NNS
of/IN
the/DT
parent/NN
holding/VBG
company/NN
initially/RB
will/MD
receive/VB
$/$
14/CD
million/CD
in/IN
cash/NN
,/,
$/$
22/CD
million/CD
face/NN
amount/NN
of/IN
senior/JJ
notes/NNS
and/CC
49/CD
%/NN
of/IN
the/DT
new/JJ
company/NN
's/POS
stock/NN
./.
That/DT
group/NN
includes/VBZ
banks/NNS
and/CC
bondholders/NNS
,/,
who/WP
have/VBP
claims/NNS
of/IN
$/$
150/CD
million/CD
and/CC
$/$
350/CD
million/CD
respectively/RB
./.
Maxicare/NNP
also/RB
will/MD
guarantee/VB
that/IN
the/DT
banks/NNS
will/MD
realize/VB
at/IN
least/JJS
$/$
7/CD
million/CD
on/IN
certain/JJ
notes/NNS
pledged/VBN
to/TO
them/PRP
./.
Maxicare/NNP
said/VBD
the/DT
plan/NN
stipulates/VBZ
that/IN
enrollees/NNS
in/IN
the/DT
company/NN
's/POS
health/NN
plans/NNS
will/MD
have/VB
valid/JJ
claims/NNS
covered/VBN
in/IN
full/JJ
./.
Those/DT
claims/NNS
,/,
along/IN
with/IN
priority/NN
employee/NN
claims/NNS
,/,
administrative/JJ
claims/NNS
,/,
priority/NN
tax/NN
claims/NNS
and/CC
administrative/JJ
convenience/NN
claims/NNS
,/,
are/VBP
expected/VBN
to/TO
total/VB
about/IN
$/$
16/CD
million/CD
./.
The/DT
plan/NN
is/VBZ
subject/JJ
to/TO
approval/NN
by/IN
the/DT
bankruptcy/NN
court/NN
and/CC
others/NNS
./.
The/DT
spokesman/NN
said/VBD
Maxicare/NNP
hopes/VBZ
to/TO
complete/VB
the/DT
reorganization/NN
by/IN
early/JJ
1990/CD
./.
Birmingham/NNP
Steel/NNP
Corp./NNP
said/VBD
that/DT
its/PRP$
Emeryville/NNP
,/,
Calif./NNP
,/,
minimill/NN
sustained/VBD
only/RB
minor/JJ
damage/NN
from/IN
last/JJ
week/NN
's/POS
earthquake/NN
./.
Steelmaking/NN
resumed/VBD
Oct./NNP
18/CD
,/,
but/CC
the/DT
company/NN
expects/VBZ
production/NN
to/TO
be/VB
hampered/VBN
in/IN
the/DT
next/JJ
few/JJ
months/NNS
by/IN
traffic/NN
disruptions/NNS
around/IN
the/DT
plant/NN
and/CC
outages/NNS
for/IN
repair/NN
to/TO
gas/NN
and/CC
electric/JJ
power/NN
systems/NNS
./.
The/DT
average/JJ
interest/NN
rate/NN
rose/VBD
to/TO
8.337/CD
%/NN
at/IN
Citicorp/NNP
's/POS
$/$
50/CD
million/CD
weekly/JJ
auction/NN
of/IN
91-day/JJ
commercial/JJ
paper/NN
,/,
or/CC
corporate/JJ
IOUs/NNS
,/,
from/IN
8.292/CD
%/NN
at/IN
last/JJ
week/NN
's/POS
sale/NN
./.
Bids/NNS
totaling/VBG
$/$
475/CD
million/CD
were/VBD
submitted/VBN
./.
Accepted/JJ
bids/NNS
ranged/VBN
from/IN
8.328/CD
%/NN
to/TO
8.347/CD
%/NN
./.
However/RB
,/,
Citicorp/NNP
said/VBD
that/IN
the/DT
average/JJ
rate/NN
fell/VBD
to/TO
7.962/CD
%/NN
at/IN
its/PRP$
$/$
50/CD
million/CD
auction/NN
of/IN
182-day/JJ
commercial/JJ
paper/NN
from/IN
7.986/CD
%/NN
at/IN
last/JJ
week/NN
's/POS
sale/NN
./.
Bids/NNS
totaling/VBG
$/$
425/CD
million/CD
were/VBD
submitted/VBN
./.
Accepted/JJ
bids/NNS
were/VBD
all/DT
at/IN
7.962/CD
%/NN
./.
The/DT
bank/NN
holding/VBG
company/NN
will/MD
auction/VB
another/DT
$/$
50/CD
million/CD
in/IN
each/DT
maturity/NN
next/IN
Tuesday/NNP
./.
Hughes/NNP
Aircraft/NNP
Co./NNP
,/,
a/DT
General/NNP
Motors/NNPS
Corp./NNP
unit/NN
,/,
said/VBD
the/DT
Intelsat/NNP
VI/NNP
commercial/JJ
communications/NNS
satellite/NN
is/VBZ
set/VBN
to/TO
be/VB
launched/VBN
Friday/NNP
./.
The/DT
satellite/NN
,/,
built/VBN
by/IN
Hughes/NNP
for/IN
the/DT
International/NNP
Telecommunications/NNPS
Satellite/NNP
Organization/NNP
,/,
is/VBZ
part/NN
of/IN
a/DT
$/$
700/CD
million/CD
contract/NN
awarded/VBN
to/TO
Hughes/NNP
in/IN
1982/CD
to/TO
develop/VB
five/CD
of/IN
the/DT
three-ton/JJ
satellites/NNS
./.
Italian/JJ
car/NN
manufacturer/NN
Fiat/NNP
said/VBD
it/PRP
is/VBZ
n't/RB
interested/VBN
in/IN
partnership/NN
or/CC
industrial/JJ
cooperation/NN
with/IN
Swedish/JJ
auto/NN
and/CC
aerospace/NN
group/NN
Saab-Scania/NNP
AB/NNP
,/,
which/WDT
faces/VBZ
heavy/JJ
losses/NNS
in/IN
its/PRP$
car/NN
division/NN
./.
Fiat/NNP
said/VBD
it/PRP
's/VBZ
only/RB
interested/JJ
in/IN
technical/JJ
cooperation/NN
with/IN
Saab/NNP
./.
``/``
We/PRP
know/VBP
that/DT
Saab/NNP
is/VBZ
looking/VBG
for/IN
a/DT
partner/NN
for/IN
industrial/JJ
and/CC
financial/JJ
cooperation/NN
,/,
''/''
Fiat/NNP
said/VBD
./.
``/``
But/CC
that/DT
partner/NN
is/VBZ
n't/RB
Fiat/NNP
./.
''/''
The/DT
Italian/JJ
auto/NN
maker/NN
confirmed/VBD
that/IN
it/PRP
was/VBD
discussing/VBG
technical/JJ
cooperation/NN
with/IN
Saab/NNP
,/,
but/CC
declined/VBD
to/TO
comment/VB
on/IN
rumors/NNS
that/IN
it/PRP
was/VBD
planning/VBG
to/TO
buy/VB
Saab/NNP
's/POS
car/NN
division/NN
./.
Fiat/NNP
's/POS
rejection/NN
of/IN
partnership/NN
with/IN
Saab/NNP
means/VBZ
that/IN
the/DT
Swedish/JJ
company/NN
,/,
which/WDT
announced/VBD
last/JJ
Friday/NNP
that/IN
its/PRP$
pretax/JJ
profit/NN
for/IN
the/DT
first/JJ
eight/CD
months/NNS
plummeted/VBD
49/CD
%/NN
,/,
will/MD
have/VB
to/TO
look/VB
for/IN
a/DT
partner/NN
among/IN
other/JJ
car/NN
manufacturers/NNS
as/IN
both/DT
Ford/NNP
Motor/NNP
Corp./NNP
and/CC
Fiat/NNP
have/VBP
turned/VBN
down/RP
the/DT
offer/NN
./.
News/NNS
reports/NNS
said/VBD
yesterday/NN
that/DT
Saab/NNP
is/VBZ
trying/VBG
to/TO
start/VB
negotiations/NNS
with/IN
French/JJ
automakers/NNS
Peugeot/NNP
and/CC
Renault/NNP
./.
ITT/NNP
Corp./NNP
,/,
its/PRP$
insurance/NN
business/NN
hurt/VBN
by/IN
Hurricane/NNP
Hugo/NNP
,/,
reported/VBD
a/DT
4/CD
%/NN
decline/NN
in/IN
third-quarter/JJ
net/JJ
income/NN
,/,
despite/IN
a/DT
4.2/CD
%/NN
rise/NN
in/IN
revenue/NN
./.
ITT/NNP
also/RB
forecast/VB
a/DT
fourth-quarter/JJ
blow/NN
to/TO
earnings/NNS
from/IN
the/DT
California/NNP
earthquake/NN
./.
Except/IN
for/IN
insurance/NN
,/,
however/RB
,/,
ITT/NNP
said/VBD
it/PRP
expects/VBZ
improved/JJ
operating/NN
earnings/NNS
``/``
in/IN
all/DT
of/IN
our/PRP$
businesses/NNS
for/IN
the/DT
full/JJ
year/NN
./.
''/''
Third-quarter/JJ
net/JJ
income/NN
dropped/VBD
to/TO
$/$
221/CD
million/CD
,/,
or/CC
$/$
1.55/CD
a/DT
share/NN
,/,
from/IN
$/$
230/CD
million/CD
,/,
or/CC
$/$
1.60/CD
a/DT
share/NN
,/,
in/IN
the/DT
year-earlier/JJ
period/NN
./.
ITT/NNP
bought/VBD
back/RB
8.8/CD
million/CD
shares/NNS
this/DT
year/NN
,/,
including/VBG
2.8/CD
million/CD
during/IN
the/DT
third/JJ
quarter/NN
./.
Third-quarter/JJ
revenue/NN
rose/VBD
to/TO
$/$
4.9/CD
billion/CD
from/IN
$/$
4.7/CD
billion/CD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
ITT/NNP
common/JJ
stock/NN
fell/VBD
62.5/CD
cents/NNS
to/TO
close/VB
at/IN
$/$
58.75/CD
a/DT
share/NN
./.
In/IN
addition/NN
to/TO
insurance/NN
and/CC
finance/NN
,/,
ITT/NNP
has/VBZ
interests/NNS
in/IN
electronic/JJ
parts/NNS
,/,
defense/NN
technology/NN
,/,
automotive/JJ
parts/NNS
,/,
fluid/NN
technology/NN
,/,
pulp/NN
and/CC
timber/NN
,/,
and/CC
communications/NNS
and/CC
information/NN
services/NNS
./.
``/``
Hurricane/NNP
Hugo/NNP
losses/NNS
and/CC
the/DT
continuing/VBG
industrywide/JJ
downturn/NN
in/IN
the/DT
property/NN
and/CC
casualty/NN
insurance/NN
business/NN
were/VBD
the/DT
major/JJ
factors/NNS
affecting/VBG
quarterly/JJ
comparisons/NNS
,/,
''/''
said/VBD
Rand/NNP
V./NNP
Araskog/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
./.
ITT/NNP
's/POS
Hartford/NNP
Insurance/NNP
Group/NNP
had/VBD
a/DT
$/$
53/CD
million/CD
quarterly/JJ
pretax/JJ
loss/NN
from/IN
Hurricane/NNP
Hugo/NNP
,/,
ITT/NNP
said/VBD
./.
Hartford/NNP
expects/VBZ
to/TO
report/VB
a/DT
further/JJ
pretax/JJ
loss/NN
of/IN
about/IN
$/$
30/CD
million/CD
for/IN
the/DT
current/JJ
quarter/NN
,/,
as/IN
a/DT
result/NN
of/IN
the/DT
California/NNP
earthquake/NN
this/DT
month/NN
,/,
ITT/NNP
added/VBD
./.
The/DT
company/NN
also/RB
disclosed/VBD
its/PRP$
financial/JJ
operations/NNS
had/VBD
increased/VBN
reserves/NNS
for/IN
bankrupt/JJ
accounts/NNS
,/,
resulting/VBG
in/IN
a/DT
$/$
40/CD
million/CD
pretax/JJ
charge/NN
for/IN
the/DT
third/JJ
quarter/NN
./.
This/DT
charge/NN
was/VBD
partly/RB
offset/VBN
,/,
however/RB
,/,
by/IN
$/$
19/CD
million/CD
in/IN
pretax/JJ
capital/NN
gains/NNS
./.
ITT/NNP
also/RB
said/VBD
its/PRP$
consumer/NN
finance/NN
unit/NN
agreed/VBD
in/IN
September/NNP
to/TO
settle/VB
a/DT
civil/JJ
suit/NN
with/IN
the/DT
California/NNP
attorney/NN
general/NN
over/IN
alleged/JJ
improper/JJ
lending/NN
and/CC
sales/NNS
practices/NNS
./.
Anticipating/VBG
this/DT
settlement/NN
,/,
the/DT
company/NN
recorded/VBD
a/DT
pretax/JJ
charge/NN
of/IN
$/$
24/CD
million/CD
during/IN
the/DT
fourth/JJ
quarter/NN
of/IN
1988/CD
./.
An/DT
ITT/NNP
spokesman/NN
said/VBD
the/DT
charge/NN
was/VBD
n't/RB
publicly/RB
reported/VBN
at/IN
the/DT
time/NN
./.
``/``
The/DT
company/NN
's/POS
product/NN
businesses/NNS
,/,
with/IN
the/DT
exception/NN
of/IN
electronic/JJ
components/NNS
,/,
had/VBD
higher/JJR
operating/NN
earnings/NNS
for/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
1989/CD
,/,
''/''
the/DT
company/NN
said/VBD
./.
Elaborating/VBG
on/IN
the/DT
exception/NN
,/,
it/PRP
said/VBD
volume/NN
and/CC
margins/NNS
were/VBD
lower/JJR
in/IN
semiconductor/NN
and/CC
power/NN
systems/NNS
operations/NNS
./.
Amoco/NNP
Corp./NNP
said/VBD
it/PRP
plans/VBZ
to/TO
install/VB
two/CD
platforms/NNS
and/CC
drill/VB
as/RB
many/JJ
as/IN
22/CD
wells/NNS
to/TO
develop/VB
oil/NN
reserves/NNS
it/PRP
discovered/VBD
in/IN
the/DT
Atlantic/NNP
Ocean/NNP
about/IN
25/CD
miles/NNS
off/IN
the/DT
coast/NN
of/IN
Congo/NNP
./.
Amoco/NNP
,/,
an/DT
energy/NN
concern/NN
,/,
is/VBZ
the/DT
operator/NN
of/IN
the/DT
project/NN
with/IN
a/DT
43.75/CD
%/NN
working/VBG
interest/NN
,/,
and/CC
other/JJ
partners/NNS
include/VBP
Hydro/NNP
Congo/NNP
,/,
the/DT
Congolese/JJ
state/NN
oil/NN
company/NN
,/,
with/IN
a/DT
50/CD
%/NN
interest/NN
,/,
and/CC
Kuwait/NNP
Foreign/NNP
Petroleum/NNP
Exploration/NNP
Co./NNP
with/IN
a/DT
6.25/CD
%/NN
stake/NN
./.
Production/NN
is/VBZ
expected/VBN
to/TO
be/VB
about/IN
40,000/CD
barrels/NNS
of/IN
oil/NN
a/DT
day/NN
after/IN
completion/NN
of/IN
the/DT
drilling/NN
program/NN
./.
Jacobs/NNP
Engineering/NNP
Group/NNP
Inc./NNP
's/POS
Jacobs/NNP
International/NNP
unit/NN
was/VBD
selected/VBN
to/TO
design/VB
and/CC
build/VB
a/DT
microcomputer-systems/JJ
manufacturing/NN
plant/NN
in/IN
County/NNP
Kildare/NNP
,/,
Ireland/NNP
,/,
for/IN
Intel/NNP
Corp/NNP
./.
Jacobs/NNP
is/VBZ
an/DT
international/JJ
engineering/NN
and/CC
construction/NN
concern/NN
./.
Total/JJ
capital/NN
investment/NN
at/IN
the/DT
site/NN
could/MD
be/VB
as/RB
much/JJ
as/IN
$/$
400/CD
million/CD
,/,
according/VBG
to/TO
Intel/NNP
./.
The/DT
150,000-square-foot/JJ
plant/NN
will/MD
be/VB
constructed/VBN
on/IN
a/DT
55-acre/JJ
site/NN
near/IN
Dublin/NNP
./.
Jacobs/NNP
Engineering/NNP
officials/NNS
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
Bob/NNP
Evans/NNP
Inc./NNP
said/VBD
its/PRP$
board/NN
authorized/VBD
the/DT
purchase/NN
of/IN
as/RB
many/JJ
as/IN
500,000/CD
shares/NNS
of/IN
its/PRP$
common/JJ
./.
The/DT
stock/NN
,/,
to/TO
be/VB
purchased/VBN
on/IN
the/DT
open/JJ
market/NN
or/CC
through/IN
privately/RB
negotiated/VBN
transactions/NNS
,/,
will/MD
be/VB
held/VBN
as/IN
treasury/NN
shares/NNS
for/IN
stock/NN
options/NNS
or/CC
other/JJ
general/JJ
corporate/JJ
purposes/NNS
./.
The/DT
program/NN
expires/VBZ
April/NNP
27/CD
./.
The/DT
restaurant/NN
operator/NN
had/VBD
32.2/CD
million/CD
shares/NNS
outstanding/JJ
as/IN
of/IN
Sept./NNP
29/CD
./.
Coda/NNP
Energy/NNP
Inc./NNP
said/VBD
it/PRP
completed/VBD
the/DT
sale/NN
of/IN
Phenix-Transmission/NNP
Co./NNP
to/TO
Bishop/NNP
Pipeline/NNP
Co./NNP
,/,
for/IN
$/$
17/CD
million/CD
in/IN
cash/NN
and/CC
notes/NNS
./.
Coda/NNP
,/,
an/DT
oil/NN
and/CC
gas/NN
concern/NN
,/,
said/VBD
it/PRP
and/CC
its/PRP$
partners/NNS
received/VBD
$/$
7/CD
million/CD
in/IN
cash/NN
and/CC
$/$
10/CD
million/CD
in/IN
five-year/JJ
notes/NNS
for/IN
the/DT
Kansas/NNP
intrastate/JJ
pipeline/NN
./.
Coda/NNP
owned/VBD
60/CD
%/NN
of/IN
the/DT
pipeline/NN
and/CC
private/JJ
entities/NNS
owned/VBD
the/DT
rest/NN
./.
Bishop/NNP
is/VBZ
based/VBN
in/IN
Hutchinson/NNP
,/,
Kansas/NNP
./.
French/JJ
consumer/NN
prices/NNS
rose/VBD
0.2/CD
%/NN
in/IN
September/NNP
from/IN
August/NNP
,/,
according/VBG
to/TO
provisional/JJ
estimates/NNS
by/IN
the/DT
National/NNP
Statistics/NNPS
Institute/NNP
./.
The/DT
agency/NN
noted/VBD
that/IN
because/IN
of/IN
a/DT
strike/NN
by/IN
Finance/NNP
Ministry/NNP
personnel/NNS
the/DT
provisional/JJ
estimate/NN
does/VBZ
n't/RB
correspond/VB
exactly/RB
to/TO
the/DT
consumer/NN
price/NN
index/NN
usually/RB
published/VBN
./.
The/DT
agency/NN
noted/VBD
,/,
however/RB
,/,
the/DT
estimate/NN
will/MD
likely/RB
be/VB
confirmed/VBN
./.
The/DT
institute/NN
did/VBD
n't/RB
estimate/VB
annual/JJ
price/NN
growth/NN
in/IN
September/NNP
,/,
but/CC
a/DT
0.2/CD
%/NN
rise/NN
by/IN
the/DT
consumer/NN
price/NN
index/NN
would/MD
put/VB
growth/NN
at/IN
either/CC
178.8/CD
or/CC
178.9/CD
,/,
up/RB
3.3/CD
%/NN
or/CC
3.4/CD
%/NN
from/IN
the/DT
year-earlier/JJ
level/NN
of/IN
173.1/CD
./.
The/DT
index/NN
was/VBD
178.5/CD
in/IN
August/NNP
and/CC
is/VBZ
based/VBN
on/IN
1980/CD
equaling/VBG
100/CD
./.
International/NNP
Technology/NNP
Corp./NNP
and/CC
Davy/NNP
McKee/NNP
Corp./NNP
,/,
a/DT
unit/NN
of/IN
London/NNP
's/POS
Davy/NNP
Corp./NNP
,/,
said/VBD
they/PRP
were/VBD
awarded/VBN
a/DT
$/$
55/CD
million/CD
contract/NN
by/IN
the/DT
U.S./NNP
Army/NNP
Corps/NNP
of/IN
Engineers/NNPS
for/IN
the/DT
closure/NN
of/IN
the/DT
Helen/NNP
Kramer/NNP
Landfill/NNP
Superfund/NNP
site/NN
in/IN
Mantua/NNP
Township/NNP
,/,
N.J/NNP
./.
International/NNP
Technology/NNP
,/,
an/DT
environmental/JJ
management/NN
concern/NN
,/,
said/VBD
the/DT
contract/NN
includes/VBZ
construction/NN
of/IN
slurry/NN
walls/NNS
,/,
gas/NN
collection/NN
systems/NNS
,/,
a/DT
multilayer/JJ
cap/NN
and/CC
water/NN
treatment/NN
plant/NN
./.
U.S./NNP
Memories/NNPS
Inc./NNP
,/,
the/DT
venture/NN
that/WDT
seeks/VBZ
to/TO
crack/VB
Japan/NNP
's/POS
domination/NN
of/IN
the/DT
memory-chip/NN
market/NN
,/,
said/VBD
it/PRP
has/VBZ
chosen/VBN
four/CD
potential/JJ
sites/NNS
for/IN
its/PRP$
operations/NNS
after/IN
a/DT
fierce/JJ
bidding/NN
war/NN
by/IN
15/CD
states/NNS
./.
U.S./NNP
Memories/NNPS
said/VBD
it/PRP
will/MD
begin/VB
visits/NNS
during/IN
the/DT
next/JJ
several/JJ
weeks/NNS
to/TO
sites/NNS
in/IN
Austin/NNP
,/,
Texas/NNP
;/:
Colorado/NNP
Springs/NNPS
,/,
Colo./NNP
;/:
Middletown/NNP
,/,
N.Y./NNP
;/:
and/CC
Phoenix/NNP
,/,
Ariz/NNP
./.
Sanford/NNP
Kane/NNP
,/,
president/NN
,/,
said/VBD
the/DT
finalists/NNS
were/VBD
chosen/VBN
from/IN
among/IN
57/CD
locations/NNS
based/VBN
on/IN
financial/JJ
,/,
business/NN
,/,
and/CC
quality/NN
of/IN
life/NN
considerations/NNS
./.
Conspicuous/JJ
by/IN
its/PRP$
absence/NN
is/VBZ
California/NNP
./.
San/NNP
Jose/NNP
and/CC
several/JJ
other/JJ
California/NNP
cities/NNS
mounted/VBD
major/JJ
campaigns/NNS
during/IN
the/DT
summer/NN
to/TO
woo/VB
the/DT
group/NN
,/,
which/WDT
was/VBD
founded/VBN
last/JJ
June/NNP
by/IN
seven/CD
electronics/NNS
concerns/NNS
./.
The/DT
venture/NN
plans/VBZ
to/TO
announce/VB
a/DT
final/JJ
site/NN
by/IN
late/JJ
November/NNP
./.
It/PRP
expects/VBZ
to/TO
begin/VB
construction/NN
by/IN
year/NN
end/NN
and/CC
start/VB
shipping/VBG
four-megabit/JJ
dynamic/JJ
random-access/JJ
memory/NN
chips/NNS
by/IN
mid-1991/NN
./.
U.S./NNP
Memories/NNPS
investors/NNS
include/VBP
Advanced/NNP
Micro/NNP
Devices/NNPS
Inc./NNP
,/,
Digital/NNP
Equipment/NNP
Corp./NNP
,/,
Hewlett-Packard/NNP
Co./NNP
,/,
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
,/,
Intel/NNP
Corp./NNP
,/,
LSI/NNP
Logic/NNP
Corp./NNP
,/,
and/CC
National/NNP
Semiconductor/NNP
Corp/NNP
./.
Mr./NNP
Kane/NNP
said/VBD
he/PRP
expects/VBZ
several/JJ
other/JJ
companies/NNS
to/TO
join/VB
some/DT
time/NN
after/IN
the/DT
venture/NN
completes/VBZ
a/DT
business/NN
plan/NN
,/,
probably/RB
later/RBR
this/DT
week/NN
./.
A/DT
seat/NN
on/IN
the/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
was/VBD
sold/VBN
for/IN
$/$
390,000/CD
,/,
unchanged/JJ
from/IN
the/DT
previous/JJ
sale/NN
Oct./NNP
13/CD
./.
Seats/NNS
currently/RB
are/VBP
quoted/VBN
at/IN
$/$
361,000/CD
bid/NN
,/,
$/$
395,000/CD
asked/VBN
./.
The/DT
record/NN
price/NN
for/IN
a/DT
full/JJ
membership/NN
on/IN
the/DT
exchange/NN
is/VBZ
$/$
550,000/CD
,/,
set/VBN
Aug./NNP
31/CD
,/,
1987/CD
./.
Dennis/NNP
R./NNP
Mangino/NNP
,/,
a/DT
general/JJ
manager/NN
of/IN
EniChem/NNP
Americas/NNPS
,/,
was/VBD
named/VBN
vice/NN
president/NN
of/IN
research/NN
and/CC
development/NN
,/,
a/DT
new/JJ
post/NN
at/IN
this/DT
steel/NN
company/NN
./.
Fred/NNP
D./NNP
Thompson/NNP
,/,
a/DT
47-year-old/JJ
attorney/NN
in/IN
private/JJ
practice/NN
in/IN
Washington/NNP
and/CC
Nashville/NNP
,/,
Tenn./NNP
,/,
was/VBD
elected/VBN
to/TO
the/DT
board/NN
of/IN
this/DT
engineering/NN
and/CC
construction/NN
company/NN
./.
The/DT
board/NN
increased/VBD
to/TO
11/CD
seats/NNS
./.
Sun/NNP
Microsystems/NNPS
Inc./NNP
said/VBD
Prime/NNP
Computer/NNP
Inc./NNP
has/VBZ
agreed/VBN
to/TO
resell/VB
as/RB
much/JJ
as/IN
$/$
200/CD
million/CD
worth/NN
of/IN
Sun/NNP
's/POS
machines/NNS
over/IN
the/DT
next/JJ
two/CD
years/NNS
./.
The/DT
computers/NNS
use/VBP
the/DT
company/NN
's/POS
own/JJ
microprocessor/NN
called/VBN
Sparc/NNP
,/,
Sun/NNP
said/VBD
./.
Quickview/NNP
Systems/NNPS
Inc./NNP
said/VBD
it/PRP
filed/VBD
a/DT
lawsuit/NN
against/IN
Apple/NNP
Computer/NNP
Inc./NNP
,/,
claiming/VBG
patent/NN
infringement/NN
in/IN
an/DT
element/NN
of/IN
Apple/NNP
's/POS
popular/JJ
HyperCard/NNP
software/NN
program/NN
./.
The/DT
suit/NN
,/,
filed/VBN
in/IN
Minneapolis/NNP
federal/JJ
court/NN
,/,
claims/VBZ
that/IN
Apple/NNP
violated/VBD
a/DT
Quickview/NNP
patent/NN
that/WDT
allows/VBZ
computer/NN
users/NNS
to/TO
display/VB
``/``
only/JJ
portions/NNS
of/IN
multiple/JJ
fields/NNS
on/IN
a/DT
computer/NN
screen/NN
with/IN
the/DT
ability/NN
to/TO
see/VB
the/DT
entire/JJ
contents/NNS
of/IN
any/DT
given/VBN
field/NN
./.
''/''
The/DT
HyperCard/NNP
program/NN
allows/VBZ
users/NNS
to/TO
design/VB
applications/NNS
for/IN
Macintosh/NNP
computers/NNS
without/IN
having/VBG
to/TO
be/VB
hardcore/NN
programmers/NNS
and/CC
is/VBZ
distributed/VBN
with/IN
every/DT
Macintosh/NNP
sold/VBN
./.
It/PRP
's/VBZ
one/CD
of/IN
the/DT
most/RBS
popular/JJ
computer/NN
programs/NNS
of/IN
all/DT
time/NN
,/,
but/CC
analysts/NNS
said/VBD
the/DT
Quickview/NNP
suit/NN
does/VBZ
n't/RB
appear/VB
to/TO
bode/VB
major/JJ
difficulties/NNS
for/IN
Apple/NNP
./.
The/DT
technology/NN
at/IN
issue/NN
``/``
is/VBZ
not/RB
an/DT
underlying/VBG
technology/NN
of/IN
HyperCard/NNP
to/TO
my/PRP$
knowledge/NN
,/,
''/''
said/VBD
Danny/NNP
Goodman/NNP
,/,
a/DT
San/NNP
Francisco-area/JJ
HyperCard/NNP
program/NN
developer/NN
./.
Nonetheless/RB
,/,
the/DT
suit/NN
seeks/VBZ
unspecified/JJ
damages/NNS
that/IN
an/DT
attorney/NN
for/IN
Quickview/NNP
claimed/VBD
could/MD
run/VB
into/IN
the/DT
millions/NNS
of/IN
dollars/NNS
./.
In/IN
Cupertino/NNP
,/,
Calif./NNP
,/,
Apple/NNP
said/VBD
that/IN
it/PRP
believes/VBZ
the/DT
case/NN
has/VBZ
no/DT
merit/NN
,/,
and/CC
that/DT
HyperCard/NNP
does/VBZ
not/RB
infringe/VB
``/``
any/DT
valid/JJ
claims/NNS
''/''
of/IN
the/DT
Quickview/NNP
patents/NNS
./.
It/PRP
said/VBD
it/PRP
filed/VBD
an/DT
action/NN
of/IN
its/PRP$
own/JJ
in/IN
federal/JJ
court/NN
in/IN
San/NNP
Jose/NNP
,/,
Calif./NNP
,/,
seeking/VBG
a/DT
declaration/NN
that/IN
Quickview/NNP
's/POS
claims/NNS
are/VBP
invalid/JJ
./.
This/DT
is/VBZ
in/IN
response/NN
to/TO
Atsushi/NNP
Kageyama/NNP
's/POS
Manager/NNP
's/POS
Journal/NNP
,/,
``/``
Looking/VBG
for/IN
the/DT
Real/JJ
Thing/NN
in/IN
Sony/NNP
''/''
(/(
editorial/NN
page/NN
,/,
Oct./NNP
2/CD
Though/IN
I/PRP
agree/VBP
with/IN
many/JJ
of/IN
Mr./NNP
Kageyama/NNP
's/POS
comments/NNS
,/,
I/PRP
believe/VBP
he/PRP
points/VBZ
the/DT
gun/NN
in/IN
the/DT
wrong/JJ
direction/NN
:/:
It/PRP
is/VBZ
n't/RB
the/DT
Americans/NNPS
who/WP
must/MD
be/VB
criticized/VBN
for/IN
not/RB
understanding/VBG
the/DT
Japanese/JJ
culture/NN
,/,
but/CC
the/DT
Japanese/NNPS
who/WP
insist/VBP
on/IN
forcing/VBG
their/PRP$
culture/NN
on/IN
Americans/NNPS
./.
The/DT
Japanese/NNPS
want/VBP
us/PRP
to/TO
accept/VB
their/PRP$
culture/NN
,/,
but/CC
they/PRP
refuse/VBP
to/TO
accept/VB
the/DT
American/JJ
culture/NN
./.
Japanese/JJ
managers/NNS
ca/MD
n't/RB
expect/VB
Americans/NNPS
to/TO
behave/VB
as/IN
if/IN
they/PRP
were/VBD
Japanese/NNPS
;/:
instead/RB
,/,
they/PRP
must/MD
manage/VB
Americans/NNPS
as/IN
Americans/NNPS
./.
Americans/NNPS
are/VBP
expected/VBN
to/TO
conform/VB
to/TO
the/DT
Japanese/JJ
culture/NN
when/WRB
in/IN
Japan/NNP
./.
What/WP
is/VBZ
wrong/JJ
with/IN
expecting/VBG
the/DT
Japanese/NNPS
to/TO
conform/VB
to/TO
American/JJ
norms/NNS
when/WRB
they/PRP
locate/VBP
here/RB
?/.
Americans/NNPS
place/VBP
native/JJ
or/CC
native/JJ
speakers/NNS
in/IN
charge/NN
of/IN
subsidiaries/NNS
overseas/RB
./.
European/JJ
multinationals/NNS
do/VBP
likewise/RB
;/:
even/RB
in/IN
America/NNP
,/,
their/PRP$
affiliates/NNS
are/VBP
usually/RB
run/VBN
by/IN
American/JJ
managers/NNS
./.
But/CC
the/DT
Japanese/NNPS
insist/VBP
upon/IN
Japanese/JJ
managers/NNS
everywhere/RB
they/PRP
set/VBP
up/RP
shop/NN
./.
Do/VBP
the/DT
Japanese/NNP
feel/VB
so/RB
superior/JJ
that/IN
they/PRP
can/MD
not/RB
find/VB
capable/JJ
American/JJ
managers/NNS
?/.
Paul/NNP
A./NN
Herbig/NNP
Indiana/NNP
University/NNP
Bloomington/NNP
,/,
Ind/NNP
./.
Mr./NNP
Kageyama/NNP
suggests/VBZ
that/IN
Kotobuki/NNP
Electronics/NNPS
Industries/NNPS
workers/NNS
were/VBD
having/VBG
difficulty/NN
understanding/VBG
their/PRP$
foreign/JJ
bosses/NNS
'/POS
perspective/NN
./.
While/IN
Mr./NNP
Kageyama/NNP
does/VBZ
an/DT
excellent/JJ
job/NN
of/IN
explaining/VBG
the/DT
differences/NNS
,/,
both/DT
cultural/JJ
and/CC
philosophic/JJ
,/,
I/PRP
question/VBP
his/PRP$
perspective/NN
./.
Would/MD
he/PRP
suggest/VB
that/IN
employees/NNS
of/IN
an/DT
American/JJ
company/NN
doing/VBG
business/NN
in/IN
Japan/NNP
conform/VB
to/TO
their/PRP$
new/JJ
bosses/NNS
'/POS
culture/NN
and/CC
philosophy/NN
?/.
Obviously/RB
not/RB
./.
Thus/RB
the/DT
conclusion/NN
is/VBZ
that/IN
the/DT
burden/NN
rests/VBZ
with/IN
management/NN
to/TO
understand\/adopt/VB
the/DT
culture/NN
and/CC
philosophy/NN
of/IN
the/DT
country/NN
in/IN
which/WDT
they/PRP
are/VBP
operating/VBG
./.
The/DT
workers/NNS
can/MD
be/VB
motivated/VBN
,/,
and/CC
the/DT
company/NN
reach/VB
its/PRP$
full/JJ
potential/NN
,/,
only/RB
when/WRB
management/NN
embraces/VBZ
the/DT
employees/NNS
'/POS
perspective/NN
./.
A./JJ
Lawton/NNP
Langford/NNP
President/NNP
Municipal/NNP
Code/NNP
Corp/NNP
./.
Tallahassee/NNP
,/,
Fla/NNP
./.
I/PRP
believe/VBP
Mr./NNP
Kageyama/NNP
left/VBD
out/RP
one/CD
major/JJ
aspect/NN
of/IN
Japanese/JJ
culture/NN
that/WDT
permeated/VBD
his/PRP$
piece/NN
:/:
the/DT
belief/NN
in/IN
the/DT
superiority/NN
of/IN
Japanese/JJ
culture/NN
and/CC
behavior/NN
vs./FW
others/NNS
./.
A/DT
manager/NN
should/MD
not/RB
have/VB
to/TO
rebut/VB
the/DT
opinions/NNS
of/IN
his/PRP$
employees/NNS
about/IN
the/DT
style/NN
of/IN
his/PRP$
management/NN
./.
Instead/RB
,/,
he/PRP
should/MD
listen/VB
to/TO
see/VB
how/WRB
that/DT
criticism/NN
can/MD
be/VB
used/VBN
constructively/RB
to/TO
advance/VB
his/PRP$
objective/NN
of/IN
carrying/VBG
out/RP
a/DT
set/NN
of/IN
tasks/NNS
through/IN
the/DT
efforts/NNS
of/IN
his/PRP$
subordinates/NNS
./.
Japanese/JJ
culture/NN
vs./FW
American/JJ
culture/NN
is/VBZ
irrelevant/JJ
./.
The/DT
key/NN
is/VBZ
how/WRB
a/DT
manager/NN
from/IN
one/CD
culture/NN
can/MD
motivate/VB
employees/NNS
from/IN
another/DT
./.
For/IN
Mr./NNP
Kageyama/NNP
to/TO
argue/VB
that/IN
American/JJ
employees/NNS
must/MD
passively/RB
accept/VB
a/DT
direct/JJ
imposition/NN
of/IN
the/DT
Japanese/JJ
way/NN
of/IN
doing/VBG
things/NNS
is/VBZ
outright/RB
cultural/JJ
chauvinism/NN
of/IN
the/DT
first/JJ
order/NN
./.
The/DT
Japanese/NNPS
are/VBP
neglecting/VBG
the/DT
opportunity/NN
to/TO
synthesize/VB
a/DT
new/JJ
corporate/JJ
culture/NN
based/VBN
on/IN
a/DT
fusion/NN
of/IN
the/DT
best/JJS
aspects/NNS
of/IN
both/DT
national/JJ
cultures/NNS
./.
Mr./NNP
Kageyama/NNP
is/VBZ
accurate/JJ
to/TO
deny/VB
a/DT
specific/JJ
anti-American/JJ
bias/NN
./.
It/PRP
is/VBZ
more/RBR
difficult/JJ
to/TO
deny/VB
a/DT
general/JJ
bigotry/NN
in/IN
seeing/VBG
things/NNS
only/RB
the/DT
Japanese/JJ
way/NN
./.
When/WRB
the/DT
response/NN
to/TO
criticism/NN
is/VBZ
only/RB
a/DT
better/JJR
explanation/NN
of/IN
policies/NNS
without/IN
altering/VBG
the/DT
reasons/NNS
for/IN
the/DT
criticism/NN
,/,
I/PRP
am/VBP
convinced/JJ
that/IN
Mr./NNP
Kageyama/NNP
has/VBZ
still/RB
failed/VBN
to/TO
attack/VB
the/DT
root/NN
cause/NN
of/IN
the/DT
problem/NN
and/CC
is/VBZ
simply/RB
treating/VBG
symptoms/NNS
./.
Norman/NNP
L./NNP
Owens/NNP
Tempe/NNP
,/,
Ariz/NNP
./.
Cie/NNP
./.
Generale/NNP
des/FW
Eaux/NNP
reported/VBD
that/DT
net/JJ
profit/NN
climbed/VBD
30/CD
%/NN
in/IN
the/DT
first/JJ
half/NN
of/IN
1989/CD
and/CC
said/VBD
that/IN
it/PRP
expects/VBZ
a/DT
gain/NN
of/IN
about/IN
25/CD
%/NN
for/IN
the/DT
full/JJ
year/NN
./.
The/DT
French/JJ
water/NN
treatment/NN
group/NN
said/VBD
consolidated/JJ
net/JJ
profit/NN
after/IN
payments/NNS
to/TO
minority/NN
interests/NNS
rose/VBD
to/TO
749/CD
million/CD
francs/NNS
US$/$
119.2/CD
million/CD
575/CD
million/CD
francs/NNS
in/IN
the/DT
first/JJ
half/NN
of/IN
1988/CD
./.
Revenue/NN
climbed/VBD
13/CD
%/NN
to/TO
45.4/CD
billion/CD
francs/NNS
from/IN
40.1/CD
billion/CD
./.
Generale/NNP
des/FW
Eaux/NNP
said/VBD
the/DT
earnings/NNS
gain/NN
was/VBD
led/VBN
by/IN
its/PRP$
water/NN
,/,
energy/NN
and/CC
building/NN
activities/NNS
./.
As/IN
a/DT
presidential/JJ
candidate/NN
in/IN
1980/CD
,/,
George/NNP
Bush/NNP
forthrightly/RB
expressed/VBD
his/PRP$
position/NN
on/IN
abortion/NN
in/IN
an/DT
interview/NN
with/IN
Rolling/NNP
Stone/NNP
magazine/NN
published/VBN
that/IN
March/NNP
./.
What/WP
did/VBD
he/PRP
think/VB
of/IN
the/DT
Supreme/NNP
Court/NNP
's/POS
decision/NN
legalizing/VBG
abortion/NN
?/.
``/``
I/PRP
happen/VBP
to/TO
think/VB
it/PRP
was/VBD
right/JJ
,/,
''/''
Mr./NNP
Bush/NNP
said/VBD
flatly/RB
./.
A/DT
few/JJ
months/NNS
later/RB
,/,
Mr./NNP
Bush/NNP
became/VBD
Ronald/NNP
Reagan/NNP
's/POS
running/JJ
mate/NN
./.
Suddenly/RB
,/,
George/NNP
Bush/NNP
the/DT
pro-choice/JJ
advocate/NN
became/VBD
George/NNP
Bush/NNP
the/DT
anti-abortionist/NN
./.
And/CC
the/DT
vacillation/NN
did/VBD
n't/RB
end/VB
there/RB
./.
Just/RB
a/DT
month/NN
ago/RB
,/,
Mr./NNP
Bush/NNP
sternly/RB
threatened/VBD
to/TO
veto/VB
a/DT
pending/VBG
welfare/NN
bill/NN
if/IN
it/PRP
provided/VBD
any/DT
abortion/NN
funds/NNS
,/,
except/IN
to/TO
save/VB
a/DT
woman/NN
's/POS
life/NN
./.
Then/RB
,/,
two/CD
weeks/NNS
ago/RB
--/:
declaring/VBG
that/IN
``/``
I/PRP
'm/VBP
not/RB
looking/VBG
for/IN
any/DT
conflict/NN
over/IN
this/DT
''/''
--/:
the/DT
president/NN
said/VBD
he/PRP
would/MD
consider/VB
a/DT
compromise/NN
to/TO
fund/VB
abortions/NNS
for/IN
poor/JJ
women/NNS
in/IN
cases/NNS
of/IN
rape/NN
and/CC
incest/NN
./.
But/CC
only/RB
four/CD
days/NNS
after/IN
that/DT
,/,
Mr./NNP
Bush/NNP
resurrected/VBD
the/DT
veto/NN
threat/NN
./.
``/``
I/PRP
do/VBP
not/RB
support/VB
federal/JJ
funding/NN
for/IN
abortions/NNS
except/IN
where/WRB
the/DT
mother/NN
's/POS
life/NN
is/VBZ
threatened/VBN
,/,
''/''
he/PRP
proclaimed/VBD
,/,
and/CC
finally/RB
vetoed/VBD
the/DT
measure/NN
last/JJ
weekend/NN
./.
So/RB
what/WP
does/VBZ
George/NNP
Bush/NNP
really/RB
believe/VB
?/.
The/DT
answer/NN
is/VBZ
so/RB
murky/JJ
that/IN
it/PRP
is/VBZ
beginning/VBG
to/TO
get/VB
this/DT
popular/JJ
president/NN
in/IN
trouble/NN
with/IN
each/DT
of/IN
the/DT
increasingly/RB
vocal/JJ
,/,
increasingly/RB
powerful/JJ
sides/NNS
of/IN
the/DT
abortion/NN
issue/NN
./.
The/DT
result/NN
is/VBZ
mistrust/NN
and/CC
criticism/NN
from/IN
all/RB
around/RB
./.
Anti-abortion/JJ
forces/NNS
regard/VBP
him/PRP
as/IN
at/IN
best/RB
an/DT
uncertain/JJ
ally/NN
./.
``/``
In/IN
all/DT
honesty/NN
if/IN
you/PRP
ask/VBP
me/PRP
,/,
`/``
Is/VBZ
this/DT
man/NN
a/DT
true/JJ
believer/NN
?/.
'/''
I/PRP
do/VBP
n't/RB
know/VB
,/,
''/''
says/VBZ
John/NNP
Fowler/NNP
,/,
head/NN
of/IN
the/DT
Washington-based/JJ
Ad/NNP
Hoc/NNP
Committee/NNP
in/IN
Defense/NNP
of/IN
Life/NNP
Inc/NNP
./.
Yet/CC
abortion-rights/JJ
forces/NNS
remain/VBP
bitterly/RB
critical/JJ
./.
Douglas/NNP
Gould/NNP
,/,
vice/NN
president/NN
of/IN
communications/NNS
for/IN
the/DT
Planned/NNP
Parenthood/NNP
Federation/NNP
of/IN
America/NNP
,/,
calls/VBZ
Mr./NNP
Bush/NNP
's/POS
position/NN
on/IN
the/DT
abortion-funding/JJ
issue/NN
``/``
extremely/RB
cruel/JJ
,/,
''/''
adding/VBG
:/:
``/``
The/DT
guy/NN
has/VBZ
n't/RB
done/VBN
one/CD
thing/NN
about/IN
prevention/NN
./.
He/PRP
's/VBZ
totally/RB
geared/VBN
to/TO
a/DT
punitive/JJ
position/NN
./.
''/''
Mr./NNP
Bush/NNP
is/VBZ
plainly/RB
uncomfortable/JJ
with/IN
the/DT
entire/JJ
abortion/NN
question/NN
./.
For/IN
most/JJS
of/IN
the/DT
past/JJ
nine/CD
years/NNS
,/,
he/PRP
has/VBZ
striven/VBN
to/TO
convince/VB
anti-abortion/JJ
activists/NNS
of/IN
his/PRP$
stalwart/JJ
support/NN
for/IN
their/PRP$
position/NN
./.
But/CC
ever/RB
since/IN
the/DT
Supreme/NNP
Court/NNP
's/POS
Webster/NNP
vs./FW
Reproductive/NNP
Health/NNP
Services/NNPS
decision/NN
this/DT
year/NN
changed/VBD
the/DT
political/JJ
landscape/NN
of/IN
the/DT
abortion/NN
issue/NN
,/,
the/DT
president/NN
seemingly/RB
has/VBZ
tried/VBN
just/RB
as/RB
hard/JJ
to/TO
avoid/VB
saying/VBG
anything/NN
more/JJR
unless/IN
pressed/VBN
to/TO
the/DT
wall/NN
./.
Many/JJ
Americans/NNPS
still/RB
agonize/VB
over/IN
their/PRP$
own/JJ
personal/JJ
feelings/NNS
about/IN
abortion/NN
./.
Mr./NNP
Bush/NNP
's/POS
problem/NN
is/VBZ
n't/RB
so/RB
much/JJ
that/IN
he/PRP
seems/VBZ
to/TO
be/VB
agonizing/JJ
over/IN
the/DT
issue/NN
as/IN
it/PRP
is/VBZ
that/IN
he/PRP
seems/VBZ
to/TO
vacillate/VB
on/IN
it/PRP
./.
The/DT
political/JJ
risk/NN
would/MD
be/VB
far/RB
less/JJR
if/IN
the/DT
president/NN
drew/VBD
a/DT
firm/JJ
line/NN
and/CC
hewed/VBD
to/TO
it/PRP
,/,
experts/NNS
insist/VBP
./.
``/``
If/IN
you/PRP
have/VBP
a/DT
position/NN
,/,
you/PRP
're/VBP
better/JJR
off/RB
to/TO
stick/VB
with/IN
it/PRP
than/IN
to/TO
move/VB
around/RB
very/RB
much/JJ
,/,
''/''
says/VBZ
Republican/NNP
strategist/NN
John/NNP
Sears/NNP
./.
The/DT
need/NN
for/IN
consistency/NN
is/VBZ
especially/RB
acute/JJ
for/IN
Mr./NNP
Bush/NNP
,/,
who/WP
,/,
Mr./NNP
Sears/NNP
maintains/VBZ
,/,
lacks/VBZ
a/DT
strong/JJ
ideological/JJ
base/NN
./.
By/IN
his/PRP$
moderate/JJ
Republican/NNP
heritage/NN
as/RB
well/RB
as/IN
the/DT
warnings/NNS
of/IN
political/JJ
advisers/NNS
who/WP
say/VBP
the/DT
issue/NN
is/VBZ
vital/JJ
to/TO
younger/JJR
voters/NNS
,/,
the/DT
president/NN
might/MD
seem/VB
to/TO
have/VB
at/IN
least/JJS
some/DT
sympathy/NN
with/IN
abortion-rights/NNS
arguments/NNS
./.
Yet/CC
he/PRP
is/VBZ
also/RB
firmly/RB
bound/VBN
by/IN
his/PRP$
hard-line/JJ
rhetoric/NN
and/CC
promises/NNS
he/PRP
made/VBD
to/TO
anti-abortion/JJ
activists/NNS
during/IN
his/PRP$
long/JJ
pursuit/NN
of/IN
the/DT
White/NNP
House/NNP
./.
On/IN
many/JJ
issues/NNS
--/:
flag-burning/NN
,/,
for/IN
instance/NN
--/:
his/PRP$
keen/JJ
political/JJ
sensitivities/NNS
overcome/VBP
such/JJ
conflicts/NNS
./.
But/CC
Mr./NNP
Bush/NNP
and/CC
his/PRP$
advisers/NNS
miscalculated/VBD
the/DT
politics/NNS
of/IN
the/DT
abortion/NN
issue/NN
,/,
failing/VBG
to/TO
grasp/VB
how/WRB
dramatically/RB
the/DT
abortion-rights/NNS
movement/NN
would/MD
be/VB
aroused/VBN
following/VBG
last/JJ
summer/NN
's/POS
Supreme/NNP
Court/NNP
decision/NN
to/TO
restrict/VB
those/DT
rights/NNS
in/IN
the/DT
Webster/NNP
case/NN
./.
``/``
It/PRP
was/VBD
one/CD
of/IN
the/DT
quickest/JJS
changes/NNS
in/IN
public/JJ
attitudes/NNS
I/PRP
've/VBP
ever/RB
seen/VBN
,/,
''/''
says/VBZ
former/JJ
Reagan/NNP
pollster/NN
Richard/NNP
Wirthlin/NNP
./.
These/DT
days/NNS
,/,
when/WRB
others/NNS
raise/VBP
the/DT
subject/NN
of/IN
abortion/NN
,/,
the/DT
usually/RB
loquacious/JJ
president/NN
can/MD
be/VB
close-mouthed/JJ
almost/RB
to/TO
the/DT
point/NN
of/IN
curtness/NN
./.
Ten/CD
days/NNS
ago/RB
he/PRP
was/VBD
asked/VBN
to/TO
amplify/VB
the/DT
reasons/NNS
behind/IN
his/PRP$
anti-abortion/JJ
stance/NN
./.
``/``
My/PRP$
position/NN
is/VBZ
well-known/JJ
and/CC
well-stated/JJ
,/,
''/''
he/PRP
replied/VBD
./.
A/DT
close/JJ
look/NN
at/IN
his/PRP$
record/NN
over/IN
the/DT
last/JJ
15/CD
years/NNS
suggests/VBZ
that/IN
Mr./NNP
Bush/NNP
has/VBZ
well-stated/VBN
his/PRP$
views/NNS
--/:
on/IN
all/DT
sides/NNS
of/IN
the/DT
issue/NN
./.
In/IN
1974/CD
,/,
as/IN
the/DT
U.S./NNP
representative/NN
to/TO
the/DT
United/NNP
Nations/NNPS
,/,
he/PRP
wrote/VBD
an/DT
introduction/NN
to/TO
a/DT
book/NN
on/IN
world/NN
population/NN
in/IN
which/WDT
he/PRP
boasted/VBD
of/IN
his/PRP$
leadership/NN
during/IN
his/PRP$
term/NN
in/IN
Congress/NNP
in/IN
expanding/VBG
family-planning/NN
services/NNS
for/IN
the/DT
poor/JJ
./.
Running/VBG
for/IN
president/NN
in/IN
early/JJ
1980/CD
,/,
he/PRP
was/VBD
also/RB
quoted/VBN
as/IN
supporting/VBG
federal/JJ
funding/NN
for/IN
abortions/NNS
in/IN
cases/NNS
of/IN
rape/NN
,/,
incest/NN
and/CC
to/TO
save/VB
the/DT
life/NN
of/IN
the/DT
mother/NN
./.
In/IN
his/PRP$
Rolling/NNP
Stone/NNP
interview/NN
in/IN
1980/CD
,/,
Mr./NNP
Bush/NNP
volunteered/VBD
his/PRP$
abortion-rights/NNS
remarks/NNS
to/TO
contrast/VB
himself/PRP
with/IN
his/PRP$
rival/NN
,/,
Ronald/NNP
Reagan/NNP
./.
In/IN
addition/NN
to/TO
supporting/VBG
the/DT
landmark/NN
Roe/NNP
vs./FW
Wade/NNP
Supreme/NNP
Court/NNP
decision/NN
legalizing/VBG
abortion/NN
,/,
Mr./NNP
Bush/NNP
said/VBD
he/PRP
opposed/VBD
the/DT
constitutional/JJ
ban/NN
on/IN
abortion/NN
that/IN
Mr./NNP
Reagan/NNP
was/VBD
promising/JJ
to/TO
promote/VB
./.
As/IN
Mr./NNP
Reagan/NNP
's/POS
running/NN
mate/NN
,/,
though/RB
,/,
Mr./NNP
Bush/NNP
plunged/VBD
headlong/RB
into/IN
the/DT
anti-abortion/JJ
position/NN
,/,
endorsing/VBG
a/DT
constitutional/JJ
amendment/NN
outlawing/VBG
abortion/NN
./.
He/PRP
acknowledged/VBD
only/RB
one/CD
difference/NN
with/IN
Mr./NNP
Reagan/NNP
--/:
that/IN
the/DT
amendment/NN
ought/MD
to/TO
have/VB
exceptions/NNS
for/IN
rape/NN
and/CC
incest/NN
as/RB
well/RB
as/IN
to/TO
save/VB
a/DT
woman/NN
's/POS
life/NN
./.
Throughout/IN
the/DT
early/JJ
1980s/NNS
,/,
Mr./NNP
Bush/NNP
was/VBD
quoted/VBN
sometimes/RB
supporting/VBG
federal/JJ
funding/NN
for/IN
abortion/NN
in/IN
cases/NNS
of/IN
rape/NN
and/CC
incest/NN
and/CC
sometimes/RB
opposing/VBG
it/PRP
./.
In/IN
April/NNP
1986/CD
,/,
then-Vice/JJ
President/NNP
Bush/NNP
had/VBD
his/PRP$
staff/NN
write/VB
a/DT
letter/NN
spelling/VBG
out/RB
that/IN
he/PRP
would/MD
support/VB
a/DT
constitutional/JJ
amendment/NN
banning/VBG
abortions/NNS
except/IN
in/IN
cases/NNS
of/IN
rape/NN
,/,
incest/NN
and/CC
life/NN
endangerment/NN
,/,
but/CC
that/IN
he/PRP
opposed/VBD
federal/JJ
funding/NN
in/IN
all/DT
but/CC
the/DT
latter/JJ
case/NN
./.
At/IN
the/DT
GOP/NNP
convention/NN
last/JJ
year/NN
,/,
he/PRP
again/RB
came/VBD
out/IN
for/IN
an/DT
amendment/NN
with/IN
exceptions/NNS
for/IN
rape/NN
,/,
incest/NN
and/CC
life/NN
endangerment/NN
./.
His/PRP$
rhetoric/NN
gathered/VBD
momentum/NN
as/IN
he/PRP
rolled/VBD
into/IN
office/NN
,/,
affirming/VBG
his/PRP$
``/``
firm/JJ
support/NN
of/IN
our/PRP$
cause/NN
''/''
during/IN
an/DT
anti-abortion/JJ
rally/NN
three/CD
days/NNS
after/IN
his/PRP$
inauguration/NN
last/JJ
January/NNP
./.
He/PRP
again/RB
urged/VBD
passage/NN
of/IN
a/DT
constitutional/JJ
amendment/NN
outlawing/VBG
abortion/NN
./.
But/CC
when/WRB
the/DT
high/JJ
court/NN
ruled/VBD
in/IN
the/DT
Webster/NNP
case/NN
in/IN
July/NNP
,/,
the/DT
president/NN
began/VBD
to/TO
lower/VB
the/DT
volume/NN
./.
When/WRB
the/DT
ruling/NN
was/VBD
handed/VBN
down/RB
,/,
the/DT
vacationing/VBG
president/NN
dispatched/VBD
Chief/NNP
of/IN
Staff/NNP
John/NNP
Sununu/NNP
to/TO
issue/VB
a/DT
statement/NN
and/CC
refused/VBD
to/TO
answer/VB
questions/NNS
himself/PRP
./.
He/PRP
did/VBD
later/RB
threaten/VB
vetoes/NNS
over/IN
legislation/NN
restoring/VBG
the/DT
District/NNP
of/IN
Columbia/NNP
's/POS
right/NN
to/TO
use/VB
its/PRP$
own/JJ
tax/NN
money/NN
to/TO
fund/NN
abortions/NNS
for/IN
poor/JJ
women/NNS
and/CC
over/IN
restoring/VBG
funding/NN
to/TO
the/DT
United/NNP
Nations/NNPS
Population/NNP
Fund/NNP
./.
But/CC
in/IN
the/DT
months/NNS
since/IN
then/RB
,/,
while/IN
trying/VBG
to/TO
drum/VB
up/RP
support/NN
for/IN
other/JJ
issues/NNS
--/:
such/JJ
as/IN
an/DT
anti-flag-burning/JJ
constitutional/JJ
amendment/NN
--/:
he/PRP
has/VBZ
shied/VBN
away/RB
from/IN
talking/VBG
about/IN
abortion/NN
./.
What/WP
few/JJ
comments/NNS
he/PRP
has/VBZ
initiated/VBN
have/VBP
been/VBN
oblique/JJ
,/,
such/JJ
as/IN
urging/VBG
``/``
greater/JJR
efforts/NNS
toward/IN
the/DT
protection/NN
of/IN
human/JJ
life/NN
''/''
at/IN
a/DT
meeting/NN
of/IN
Catholic/JJ
lawyers/NNS
in/IN
Boston/NNP
last/JJ
month/NN
./.
The/DT
White/NNP
House/NNP
has/VBZ
likewise/RB
avoided/VBN
any/DT
involvement/NN
in/IN
Florida/NNP
's/POS
recent/JJ
special/JJ
legislative/JJ
session/NN
on/IN
abortion/NN
,/,
which/WDT
anti-abortion/NN
forces/NNS
had/VBD
regarded/VBN
as/IN
a/DT
key/JJ
test/NN
of/IN
their/PRP$
ability/NN
to/TO
get/VB
state/NN
lawmakers/NNS
to/TO
toughen/VB
abortion/NN
restrictions/NNS
./.
The/DT
session/NN
failed/VBD
to/TO
enact/VB
any/DT
new/JJ
curbs/NNS
./.
Now/RB
,/,
some/DT
see/VBP
Mr./NNP
Bush/NNP
trapped/VBN
in/IN
a/DT
position/NN
he/PRP
is/VBZ
neither/CC
comfortable/JJ
with/IN
nor/CC
able/JJ
to/TO
escape/VB
./.
Ken/NNP
Ruberg/NNP
,/,
head/NN
of/IN
the/DT
Republican/NNP
Mainstream/NNP
Committee/NNP
,/,
a/DT
group/NN
of/IN
party/NN
moderates/NNS
,/,
observes/VBZ
:/:
``/``
The/DT
administration/NN
finds/VBZ
itself/PRP
in/IN
an/DT
ideological/JJ
cul/NN
de/IN
sac/NN
that/IN
it/PRP
will/MD
find/VB
it/PRP
difficult/JJ
--/:
if/IN
not/RB
impossible/JJ
--/:
to/TO
get/VB
itself/PRP
out/IN
of/IN
./.
''/''
Christopher/NNP
Cox/NNP
's/POS
Oct./NNP
13/CD
editorial-page/NN
article/NN
``/``
Toward/IN
More/JJR
Crippling/JJ
Lawsuits/NNS
.../:
''/''
misses/VBZ
the/DT
point/NN
./.
The/DT
1989/CD
Americans/NNPS
With/IN
Disabilities/NNPS
Act/NNP
is/VBZ
about/IN
eliminating/VBG
discriminatory/JJ
barriers/NNS
./.
When/WRB
we/PRP
look/VBP
closely/RB
at/IN
our/PRP$
own/JJ
history/NN
,/,
it/PRP
is/VBZ
clear/JJ
that/IN
our/PRP$
constitutionally/RB
mandated/VBN
civil/JJ
rights/NNS
have/VBP
evolved/VBN
not/RB
through/IN
the/DT
goodness/NN
of/IN
people/NNS
's/POS
hearts/NNS
but/CC
through/IN
legislation/NN
and/CC
constitutional/JJ
amendments/NNS
./.
This/DT
is/VBZ
how/WRB
American/JJ
women/NNS
won/VBD
the/DT
right/NN
to/TO
vote/VB
./.
And/CC
it/PRP
is/VBZ
how/WRB
African-Americans/NNPS
and/CC
other/JJ
minority/NN
groups/NNS
were/VBD
guaranteed/VBN
their/PRP$
equal/JJ
rights/NNS
as/IN
citizens/NNS
in/IN
this/DT
nation/NN
./.
For/IN
the/DT
more/JJR
than/IN
43/CD
million/CD
Americans/NNPS
with/IN
disabilities/NNS
,/,
the/DT
1989/CD
Americans/NNPS
With/IN
Disabilities/NNPS
Act/NNP
provides/VBZ
the/DT
missing/VBG
piece/NN
./.
Disabled/JJ
Americans/NNPS
have/VBP
had/VBN
their/PRP$
civil/JJ
rights/NNS
guaranteed/VBN
in/IN
all/DT
federally/RB
funded/VBN
programs/NNS
since/IN
Section/NN
504/CD
was/VBD
passed/VBN
as/IN
a/DT
part/NN
of/IN
the/DT
1973/CD
Rehabilitation/NNP
Act/NNP
./.
The/DT
1989/CD
act/NN
simply/RB
extends/VBZ
these/DT
guarantees/NNS
to/TO
the/DT
private/JJ
sector/NN
./.
Those/DT
who/WP
fear/VBP
a/DT
plethora/NN
of/IN
suits/NNS
paralyzing/VBG
our/PRP$
legal/JJ
system/NN
need/MD
only/RB
look/VB
at/IN
the/DT
record/NN
on/IN
the/DT
Rehabilitation/NNP
Act/NNP
./.
Without/IN
legal/JJ
recourse/NN
,/,
there/EX
are/VBP
no/DT
guarantees/NNS
of/IN
civil/JJ
rights/NNS
for/IN
anyone/NN
./.
John/NNP
R./NNP
Garrison/NNP
President/NNP
National/NNP
Easter/NNP
Seal/NNP
Society/NNP
Chicago/NNP
Ford/NNP
Motor/NNP
Co./NNP
said/VBD
it/PRP
is/VBZ
consolidating/VBG
control/NN
of/IN
its/PRP$
Asian/JJ
operations/NNS
under/IN
a/DT
new/JJ
organization/NN
here/RB
that/DT
will/MD
be/VB
headed/VBN
by/IN
W./NNP
Wayne/NNP
Booker/NNP
./.
Ford/NNP
Asia-Pacific/NNP
will/MD
coordinate/VB
the/DT
activities/NNS
of/IN
Ford/NNP
subsidiaries/NNS
in/IN
Japan/NNP
,/,
Australia/NNP
,/,
Taiwan/NNP
and/CC
New/NNP
Zealand/NNP
and/CC
work/NN
with/IN
Ford/NNP
business/NN
associates/NNS
throughout/IN
the/DT
region/NN
./.
These/DT
functions/NNS
are/VBP
currently/RB
performed/VBN
out/IN
of/IN
Melbourne/NNP
,/,
Australia/NNP
,/,
and/CC
at/IN
Ford/NNP
's/POS
headquarters/NN
in/IN
Dearborn/NNP
,/,
Mich/NNP
./.
Mr./NNP
Booker/NNP
,/,
executive/NN
director/NN
of/IN
Ford/NNP
's/POS
Latin/NNP
America/NNP
Automotive/NNP
Operations/NNP
since/IN
December/NNP
1988/CD
,/,
was/VBD
named/VBN
vice/NN
president/NN
of/IN
Ford/NNP
Asia-Pacific/NNP
./.
Goodyear/NNP
Tire/NNP
&/CC
Rubber/NNP
Co./NNP
,/,
buoyed/VBN
by/IN
improved/JJ
operating/NN
profit/NN
in/IN
its/PRP$
tire/NN
segment/NN
,/,
reported/VBD
that/IN
third-quarter/JJ
net/JJ
income/NN
rose/VBD
11/CD
%/NN
to/TO
$/$
70.5/CD
million/CD
,/,
or/CC
$/$
1.22/CD
a/DT
share/NN
./.
In/IN
the/DT
year-ago/JJ
period/NN
,/,
Goodyear/NNP
had/VBN
net/NN
of/IN
$/$
63.5/CD
million/CD
,/,
or/CC
$/$
1.11/CD
a/DT
share/NN
./.
Sales/NNS
rose/VBD
slightly/RB
to/TO
$/$
2.68/CD
billion/CD
,/,
from/IN
$/$
2.66/CD
billion/CD
./.
Analysts/NNS
had/VBD
mixed/JJ
responses/NNS
to/TO
the/DT
results/NNS
./.
Donald/NNP
DeScenza/NNP
,/,
an/DT
independent/JJ
analyst/NN
in/IN
New/NNP
Canaan/NNP
,/,
Conn./NNP
,/,
said/VBD
he/PRP
was/VBD
``/``
impressed/JJ
with/IN
the/DT
company/NN
's/POS
performance/NN
./.
''/''
He/PRP
said/VBD
results/NNS
were/VBD
better/JJR
than/IN
he/PRP
'd/MD
expected/VBN
and/CC
indicate/VBP
that/IN
Goodyear/VBP
is/VBZ
in/IN
the/DT
midst/NN
of/IN
a/DT
turnaround/NN
from/IN
a/DT
string/NN
of/IN
lackluster/JJ
quarters/NNS
that/WDT
have/VBP
plagued/VBN
the/DT
company/NN
for/IN
a/DT
year/NN
./.
However/RB
,/,
Harry/NNP
Millis/NNP
,/,
an/DT
analyst/NN
at/IN
McDonald/NNP
&/CC
Co./NNP
,/,
Cleveland/NNP
,/,
said/VBD
Goodyear/NNP
's/POS
results/NNS
``/``
fell/VBD
at/IN
the/DT
bottom/NN
''/''
of/IN
his/PRP$
range/NN
of/IN
estimates/NNS
./.
Excluding/VBG
an/DT
increase/NN
in/IN
the/DT
tax/NN
rate/NN
and/CC
the/DT
effects/NNS
of/IN
foreign/JJ
currency/NN
translations/NNS
,/,
Mr./NNP
Millis/NNP
said/VBD
the/DT
company/NN
's/POS
results/NNS
``/``
were/VBD
still/RB
a/DT
little/RB
disappointing/JJ
./.
''/''
Goodyear/NNP
's/POS
stock/NN
,/,
which/WDT
has/VBZ
been/VBN
weak/JJ
in/IN
recent/JJ
weeks/NNS
,/,
fell/VBD
$/$
2.875/CD
yesterday/NN
to/TO
close/VB
at/IN
$/$
43.875/CD
a/DT
share/NN
in/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
The/DT
Akron/NNP
,/,
Ohio-based/JJ
company/NN
said/VBD
pretax/JJ
operating/NN
income/NN
in/IN
its/PRP$
tire/NN
segment/NN
jumped/VBD
about/IN
31/CD
%/NN
to/TO
$/$
196.2/CD
million/CD
from/IN
$/$
150.2/CD
million/CD
a/DT
year/NN
earlier/RB
,/,
reflecting/VBG
improvements/NNS
in/IN
raw/JJ
material/NN
costs/NNS
,/,
sales/NNS
of/IN
replacement/NN
tires/NNS
and/CC
pricing/NN
./.
McDonald/NNP
's/POS
Mr./NNP
Millis/NNP
said/VBD
Goodyear/NNP
appeared/VBD
to/TO
have/VB
held/VBN
or/CC
gained/VBN
some/DT
market/NN
share/NN
in/IN
the/DT
U.S./NNP
for/IN
the/DT
first/JJ
time/NN
since/IN
the/DT
second/JJ
quarter/NN
of/IN
1988/CD
./.
But/CC
Goodyear/NNP
said/VBD
total/JJ
U.S./NNP
tire/NN
unit/NN
sales/NNS
were/VBD
off/IN
about/IN
2/CD
%/NN
./.
Total/JJ
tire/NN
segment/NN
sales/NNS
were/VBD
up/RB
only/RB
about/IN
1/CD
%/NN
to/TO
$/$
2.2/CD
billion/CD
,/,
and/CC
the/DT
company/NN
said/VBD
it/PRP
reduced/VBD
manufacturing/NN
levels/NNS
at/IN
some/DT
of/IN
its/PRP$
U.S./NNP
tire/NN
plants/NNS
because/RB
of/IN
inventory/NN
adjustments/NNS
and/CC
slackened/JJ
production/NN
by/IN
auto/NN
makers/NNS
./.
In/IN
the/DT
latest/JJS
quarter/NN
,/,
Goodyear/NNP
's/POS
tax/NN
rate/NN
was/VBD
51/CD
%/NN
compared/VBN
with/IN
41/CD
%/NN
a/DT
year/NN
earlier/RB
./.
As/IN
a/DT
result/NN
,/,
total/JJ
tax/NN
outlays/NNS
were/VBD
$/$
73.5/CD
million/CD
,/,
compared/VBN
with/IN
$/$
44.1/CD
million/CD
the/DT
year/NN
earlier/RB
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
profit/NN
skidded/VBD
about/IN
35/CD
%/NN
,/,
reflecting/VBG
charges/NNS
taken/VBN
in/IN
this/DT
year/NN
's/POS
second/JJ
quarter/NN
and/CC
the/DT
effect/NN
of/IN
translations/NNS
of/IN
weaker/JJR
foreign/JJ
currencies/NNS
into/IN
the/DT
stronger/JJR
U.S./NNP
dollar/NN
./.
Net/NN
was/VBD
$/$
192.1/CD
million/CD
,/,
or/CC
$/$
3.33/CD
a/DT
share/NN
,/,
compared/VBN
with/IN
net/NN
of/IN
$/$
293.7/CD
million/CD
,/,
or/CC
$/$
5.13/CD
a/DT
share/NN
,/,
the/DT
year/NN
earlier/RB
./.
The/DT
latest/JJS
nine/CD
months/NNS
included/VBD
charges/NNS
of/IN
$/$
95/CD
million/CD
related/VBN
to/TO
the/DT
company/NN
's/POS
South/JJ
African/JJ
subsidiary/NN
and/CC
unused/JJ
pipe/NN
sold/VBN
by/IN
its/PRP$
crude/JJ
oil/NN
pipeline/NN
unit/NN
./.
Sales/NNS
rose/VBD
nearly/RB
2/CD
%/NN
to/TO
$/$
8.13/CD
billion/CD
from/IN
$/$
7.98/CD
billion/CD
./.
Environmental/NNP
Control/NNP
Group/NNP
Inc./NNP
said/VBD
it/PRP
expects/VBZ
to/TO
report/VB
``/``
minimal/JJ
''/''
earnings/NNS
or/CC
a/DT
loss/NN
for/IN
the/DT
third/JJ
quarter/NN
./.
The/DT
environmental/JJ
services/NNS
company/NN
said/VBD
that/IN
the/DT
discontinuation/NN
of/IN
unsuccessful/JJ
product/NN
lines/NNS
and/CC
an/DT
increase/NN
in/IN
baddebt/JJ
reserves/NNS
probably/RB
will/MD
result/VB
in/IN
charges/NNS
of/IN
$/$
2.5/CD
million/CD
to/TO
$/$
4/CD
million/CD
,/,
most/JJS
of/IN
which/WDT
will/MD
be/VB
taken/VBN
against/IN
third-quarter/JJ
results/NNS
./.
In/IN
the/DT
year-ago/JJ
quarter/NN
,/,
the/DT
company/NN
reported/VBD
earnings/NNS
of/IN
$/$
2.2/CD
million/CD
,/,
or/CC
35/CD
cents/NNS
a/DT
share/NN
./.
Former/JJ
USX/NNP
Corp./NNP
Chairman/NNP
David/NNP
M./NNP
Roderick/NNP
may/MD
have/VB
been/VBN
lucky/JJ
he/PRP
retired/VBD
last/JJ
May/NNP
./.
As/IN
he/PRP
handed/VBD
over/IN
the/DT
reins/NNS
to/TO
successor/NN
Charles/NNP
A./NN
Corry/NNP
,/,
steel/NN
profits/NNS
were/VBD
close/JJ
to/TO
a/DT
cyclical/JJ
peak/NN
./.
Though/IN
imports/NNS
were/VBD
troublesome/JJ
,/,
they/PRP
were/VBD
n't/RB
running/VBG
away/RB
with/IN
the/DT
market/NN
,/,
and/CC
American/JJ
companies/NNS
had/VBD
high/JJ
hopes/NNS
that/IN
steel/NN
import/NN
quotas/NNS
would/MD
be/VB
extended/VBN
for/IN
another/DT
five/CD
years/NNS
./.
Perhaps/RB
most/RBS
important/JJ
,/,
Carl/NNP
Icahn/NNP
,/,
who/WP
had/VBD
once/RB
threatened/VBN
a/DT
hostile/JJ
takeover/NN
bid/NN
,/,
was/VBD
subdued/VBN
./.
He/PRP
and/CC
Mr./NNP
Roderick/NNP
were/VBD
even/RB
dining/VBG
out/RP
together/RB
./.
Today/NN
,/,
Mr./NNP
Corry/NNP
presides/VBZ
over/IN
a/DT
company/NN
whose/WP$
fortunes/NNS
have/VBP
changed/VBN
abruptly/RB
./.
Mr./NNP
Icahn/NNP
,/,
the/DT
company/NN
's/POS
deep-pocketed/JJ
,/,
tenacious/JJ
adversary/NN
,/,
recently/RB
disclosed/VBD
that/IN
he/PRP
had/VBD
raised/VBN
his/PRP$
USX/NNP
stake/NN
to/TO
13.1/CD
%/NN
,/,
and/CC
he/PRP
again/RB
threatened/VBD
a/DT
takeover/NN
./.
A/DT
battle/NN
with/IN
Mr./NNP
Icahn/NNP
would/MD
rattle/VB
even/RB
the/DT
most/RBS
seasoned/JJ
chief/JJ
executive/NN
,/,
to/TO
say/VB
nothing/NN
of/IN
one/NN
who/WP
took/VBD
the/DT
helm/NN
less/JJR
than/IN
five/CD
months/NNS
ago/RB
./.
In/IN
addition/NN
,/,
USX/NNP
's/POS
giant/JJ
steel/NN
segment/NN
,/,
representing/VBG
34/CD
%/NN
of/IN
its/PRP$
1988/CD
sales/NNS
,/,
is/VBZ
facing/VBG
softening/VBG
demand/NN
and/CC
slipping/VBG
prices/NNS
as/RB
well/RB
as/IN
increasing/VBG
competition/NN
from/IN
foreign/JJ
steelmakers/NNS
and/CC
low-cost/JJ
minimills/NNS
./.
The/DT
import/NN
quotas/NNS
got/VBD
only/RB
a/DT
2/CD
1\/2-year/JJ
extension/NN
,/,
and/CC
USX/NNP
is/VBZ
laboring/VBG
under/IN
a/DT
staggering/JJ
$/$
5.8/CD
billion/CD
debt/NN
at/IN
a/DT
time/NN
when/WRB
it/PRP
must/MD
spend/VB
money/NN
to/TO
upgrade/VB
steel/NN
mills/NNS
and/CC
drill/VB
for/IN
oil/NN
./.
``/``
It/PRP
's/VBZ
a/DT
baptism/NN
of/IN
fire/NN
for/IN
Corry/NNP
,/,
''/''
says/VBZ
one/CD
USX/NNP
executive/NN
./.
The/DT
burning/VBG
question/NN
is/VBZ
whether/IN
the/DT
new/JJ
chief/NN
can/MD
parry/VB
Mr./NNP
Icahn/NNP
without/IN
being/VBG
pushed/VBN
into/IN
unwelcome/JJ
moves/NNS
./.
Mr./NNP
Corry/NNP
might/MD
have/VB
to/TO
dismember/VB
the/DT
company/NN
more/RBR
than/IN
he/PRP
wants/VBZ
to/TO
./.
Or/CC
he/PRP
might/MD
have/VB
to/TO
incur/VB
a/DT
huge/JJ
expense/NN
of/IN
either/CC
buying/VBG
Mr./NNP
Icahn/NNP
's/POS
stock/NN
,/,
possibly/RB
at/IN
a/DT
premium/JJ
,/,
or/CC
paying/VBG
stockholders/NNS
a/DT
special/JJ
dividend/NN
partly/RB
because/IN
of/IN
Mr./NNP
Icahn/NNP
's/POS
pressure/NN
./.
With/IN
his/PRP$
recent/JJ
purchases/NNS
of/IN
USX/NNP
common/JJ
stock/NN
,/,
Mr./NNP
Icahn/NNP
shattered/VBD
a/DT
three-year-old/JJ
,/,
unwritten/JJ
standstill/JJ
agreement/NN
with/IN
Mr./NNP
Roderick/NNP
./.
In/IN
1986/CD
,/,
Mr./NNP
Roderick/NNP
adroitly/RB
dodged/VBD
Mr./NNP
Icahn/NNP
's/POS
first/JJ
bullet/NN
after/IN
the/DT
takeover/NN
specialist/NN
had/VBD
built/VBN
up/RP
an/DT
11.4/CD
%/NN
stake/NN
./.
Mr./NNP
Roderick/NNP
did/VBD
so/RB
by/IN
having/VBG
USX/NNP
redeem/VB
a/DT
series/NN
of/IN
guaranteed/JJ
notes/NNS
,/,
a/DT
move/NN
that/WDT
,/,
in/IN
effect/NN
,/,
raised/VBD
the/DT
cost/NN
of/IN
a/DT
$/$
7.19/CD
billion/CD
Icahn/NNP
bid/NN
by/IN
about/IN
$/$
3/CD
billion/CD
./.
And/CC
he/PRP
managed/VBD
to/TO
fend/VB
off/RP
further/JJ
advances/NNS
and/CC
even/RB
strike/VB
up/RP
an/DT
unlikely/JJ
friendship/NN
with/IN
the/DT
interloper/NN
./.
Over/IN
dinners/NNS
at/IN
New/NNP
York/NNP
's/POS
Sky/NNP
Club/NNP
and/CC
Links/NNP
Club/NNP
restaurants/NNS
,/,
the/DT
steel/NN
executive/NN
and/CC
the/DT
big/JJ
investor/NN
talked/VBD
steel/NN
,/,
international/JJ
trade/NN
and/CC
thoroughbred/JJ
horses/NNS
./.
Mr./NNP
Corry/NNP
,/,
who/WP
has/VBZ
boned/VBN
up/RB
on/IN
corporate/JJ
raiders/NNS
by/IN
reading/VBG
T./NNP
Boone/NNP
Pickens/NNP
's/POS
autobiography/NN
,/,
had/VBD
hoped/VBN
the/DT
detente/NN
would/MD
continue/VB
./.
He/PRP
was/VBD
shocked/JJ
,/,
associates/NNS
say/VBP
,/,
to/TO
learn/VB
of/IN
Mr./NNP
Icahn/NNP
's/POS
new/JJ
takeover/NN
threat/NN
./.
Both/DT
men/NNS
declined/VBD
to/TO
be/VB
interviewed/VBN
for/IN
this/DT
article/NN
./.
the/DT
fiercely/RB
competitive/JJ
Mr./NNP
Corry/NNP
quickly/RB
showed/VBD
he/PRP
's/VBZ
no/DT
pushover/NN
./.
He/PRP
huddled/VBD
with/IN
directors/NNS
at/IN
a/DT
special/JJ
meeting/NN
two/CD
weeks/NNS
ago/RB
and/CC
tried/VBD
to/TO
block/VB
his/PRP$
opponent/NN
./.
Although/IN
the/DT
board/NN
believed/VBD
that/IN
Mr./NNP
Icahn/NNP
is/VBZ
more/RBR
interested/JJ
in/IN
talking/VBG
the/DT
stock/NN
price/NN
higher/RBR
than/IN
acquiring/VBG
USX/NNP
,/,
it/PRP
adopted/VBD
a/DT
poison-pill/NN
defense/NN
,/,
to/TO
be/VB
swallowed/VBN
if/IN
anyone/NN
amasses/VBZ
a/DT
15/CD
%/NN
stake/NN
./.
Now/RB
,/,
it/PRP
's/VBZ
Mr./NNP
Icahn/NNP
's/POS
move/NN
./.
Will/MD
he/PRP
try/VB
to/TO
gain/VB
a/DT
seat/NN
on/IN
or/CC
control/VB
of/IN
the/DT
board/NN
and/CC
force/VB
a/DT
radical/JJ
split/NN
of/IN
USX/NNP
into/IN
separate/JJ
oil/NN
and/CC
steel/NN
companies/NNS
?/.
Given/VBN
the/DT
weakness/NN
of/IN
the/DT
junk-bond/NN
market/NN
,/,
can/MD
he/PRP
finance/VB
a/DT
buy-out/NN
?/.
Mr./NNP
Icahn/NNP
may/MD
not/RB
want/VB
to/TO
sell/VB
out/RB
unless/IN
he/PRP
can/MD
get/VB
a/DT
special/JJ
dividend/NN
similar/JJ
to/TO
one/NN
he/PRP
received/VBD
before/IN
selling/VBG
his/PRP$
stake/NN
in/IN
Texaco/NNP
Inc./NNP
in/IN
June/NNP
--/:
a/DT
coup/NN
that/WDT
gave/VBD
him/PRP
enough/JJ
cash/NN
to/TO
make/VB
his/PRP$
USX/NNP
move/NN
./.
And/CC
although/IN
the/DT
recent/JJ
turmoil/NN
in/IN
the/DT
stock/NN
and/CC
junk-bond/NN
markets/NNS
,/,
by/IN
making/VBG
it/PRP
harder/JJR
to/TO
arrange/VB
takeover/NN
financing/NN
,/,
has/VBZ
eased/VBN
some/DT
of/IN
the/DT
pressure/NN
on/IN
Mr./NNP
Corry/NNP
,/,
it/PRP
does/VBZ
n't/RB
end/VB
the/DT
takeover/NN
threat/NN
./.
``/``
I/PRP
know/VBP
it/PRP
's/VBZ
not/RB
over/RP
,/,
''/''
a/DT
sober-faced/JJ
Mr./NNP
Corry/NNP
acknowledged/VBD
while/IN
greeting/VBG
steel/NN
suppliers/NNS
in/IN
New/NNP
York/NNP
on/IN
Oct./NNP
12/CD
and/CC
inviting/VBG
them/PRP
to/TO
a/DT
buffet/NN
of/IN
salmon/NN
and/CC
sushi/NN
in/IN
honor/NN
of/IN
Kobe/NNP
Steel/NNP
Ltd./NNP
,/,
USX/NNP
's/POS
partner/NN
in/IN
a/DT
steel/NN
mill/NN
in/IN
Lorain/NNP
,/,
Ohio/NNP
./.
In/IN
fact/NN
,/,
it/PRP
's/VBZ
barely/RB
begun/VBN
for/IN
Mr./NNP
Corry/NNP
,/,
who/WP
faces/VBZ
tough/JJ
decisions/NNS
before/IN
he/PRP
has/VBZ
had/VBN
a/DT
chance/NN
to/TO
get/VB
settled/VBN
into/IN
his/PRP$
new/JJ
job/NN
./.
``/``
He/PRP
's/VBZ
in/IN
a/DT
vulnerable/JJ
position/NN
because/IN
he/PRP
has/VBZ
n't/RB
established/VBN
much/JJ
credibility/NN
on/IN
his/PRP$
own/JJ
,/,
''/''
says/VBZ
Bryan/NNP
Jacoboski/NNP
,/,
a/DT
securities/NNS
analyst/NN
at/IN
PaineWebber/NNP
Inc/NNP
./.
The/DT
57-year-old/JJ
tax/NN
attorney/NN
never/RB
even/RB
aspired/VBD
to/TO
the/DT
job/NN
of/IN
chief/JJ
executive/NN
./.
An/DT
undistinguished/JJ
college/NN
student/NN
who/WP
dabbled/VBD
in/IN
zoology/NN
until/IN
he/PRP
concluded/VBD
that/IN
he/PRP
could/MD
n't/RB
stand/VB
cutting/VBG
up/RP
frogs/NNS
,/,
Mr./NNP
Corry/NNP
wanted/VBD
to/TO
work/VB
for/IN
a/DT
big/JJ
company/NN
``/``
that/DT
could/MD
do/VB
big/JJ
things/NNS
./.
''/''
But/CC
after/IN
joining/VBG
the/DT
tax/NN
department/NN
of/IN
a/DT
USX/NNP
subsidiary/NN
30/CD
years/NNS
ago/RB
,/,
he/PRP
set/VBD
the/DT
modest/JJ
goal/NN
of/IN
becoming/VBG
tax/NN
manager/NN
by/IN
the/DT
age/NN
of/IN
46/CD
./.
For/IN
years/NNS
,/,
he/PRP
quietly/RB
stuck/VBD
to/TO
the/DT
back/JJ
accounting/NN
rooms/NNS
,/,
wearing/VBG
a/DT
hat/NN
to/TO
work/VB
because/IN
everyone/NN
else/RB
did/VBD
./.
``/``
I/PRP
was/VBD
never/RB
a/DT
rebel/NN
,/,
''/''
he/PRP
said/VBD
in/IN
an/DT
earlier/JJR
interview/NN
./.
``/``
I/PRP
do/VBP
n't/RB
think/VB
most/JJS
of/IN
the/DT
people/NNS
that/WDT
have/VBP
been/VBN
around/IN
me/PRP
would/MD
ever/RB
say/VB
they/PRP
've/VBP
seen/VBN
me/PRP
pound/VB
the/DT
table/NN
or/CC
get/VB
angry/JJ
./.
''/''
Yet/CC
,/,
the/DT
unassuming/JJ
Mr./NNP
Corry/NNP
helped/VBD
chart/VB
USX/NNP
's/POS
transition/NN
from/IN
Big/JJ
Steel/NN
to/TO
Big/JJ
Oil/NN
./.
He/PRP
served/VBD
as/IN
Mr./NNP
Roderick/NNP
's/POS
front/JJ
man/NN
in/IN
tense/JJ
negotiations/NNS
for/IN
the/DT
1982/CD
purchase/NN
of/IN
Marathon/NNP
Oil/NNP
for/IN
$/$
5.9/CD
billion/CD
./.
Nevertheless/RB
,/,
Mr./NNP
Corry/NNP
,/,
once/RB
named/VBN
chief/JJ
executive/NN
,/,
did/VBD
n't/RB
waste/VB
any/DT
time/NN
distancing/VBG
himself/PRP
from/IN
his/PRP$
former/JJ
boss/NN
,/,
who/WP
still/RB
has/VBZ
an/DT
office/NN
on/IN
the/DT
62nd/JJ
floor/NN
of/IN
the/DT
USX/NNP
tower/NN
in/IN
Pittsburgh/NNP
./.
Soon/RB
after/IN
taking/VBG
over/RB
last/JJ
June/NNP
,/,
Mr./NNP
Corry/NNP
rescinded/VBD
a/DT
pay/NN
cut/NN
imposed/VBN
on/IN
clerical/NN
workers/NNS
,/,
a/DT
move/NN
that/IN
Mr./NNP
Roderick/NNP
had/VBD
n't/RB
made/VBN
in/IN
spite/NN
of/IN
improved/JJ
earnings/NNS
./.
Mr./NNP
Corry/NNP
also/RB
ruled/VBD
that/IN
all/DT
board/NN
meetings/NNS
would/MD
be/VB
held/VBN
in/IN
Pittsburgh/NNP
instead/RB
of/IN
New/NNP
York/NNP
or/CC
Findlay/NNP
,/,
Ohio/NNP
,/,
Marathon/NNP
's/POS
home/NN
./.
And/CC
,/,
earlier/RBR
this/DT
month/NN
,/,
he/PRP
announced/VBD
the/DT
sale/NN
of/IN
the/DT
reserves/NNS
of/IN
Texas/NNP
Oil/NNP
&/CC
Gas/NNP
,/,
which/WDT
was/VBD
acquired/VBN
three/CD
years/NNS
ago/RB
and/CC
has/VBZ
n't/RB
posted/VBN
any/DT
significant/JJ
operating/NN
profits/NNS
since/IN
./.
One/CD
former/JJ
executive/NN
says/VBZ
,/,
``/``
Nobody/NN
wanted/VBD
that/DT
deal/NN
inside/IN
USX/NNP
except/IN
Dave/NNP
Roderick/NNP
,/,
''/''
who/WP
was/VBD
a/DT
hunting/NN
and/CC
fishing/NN
buddy/NN
of/IN
William/NNP
L./NNP
Hutchison/NNP
,/,
chairman/NN
of/IN
Texas/NNP
Oil/NNP
&/CC
Gas/NNP
./.
The/DT
executive/NN
recalls/VBZ
Mr./NNP
Corry/NNP
whispering/VBG
to/TO
him/PRP
and/CC
others/NNS
,/,
``/``
Remember/VB
,/,
this/DT
was/VBD
Dave/NNP
's/POS
deal/NN
./.
''/''
What/WP
miffed/VBD
many/JJ
USX/NNP
executives/NNS
and/CC
shareholders/NNS
was/VBD
that/IN
the/DT
acquisition/NN
,/,
for/IN
$/$
3/CD
billion/CD
of/IN
stock/NN
,/,
doubled/VBD
the/DT
USX/NNP
shares/NNS
outstanding/JJ
and/CC
considerably/RB
diluted/VBD
them/PRP
./.
What/WP
's/VBZ
more/JJR
,/,
the/DT
takeover/NN
occurred/VBD
as/IN
natural-gas/NN
prices/NNS
were/VBD
falling/VBG
and/CC
just/RB
as/IN
Texas/NNP
Oil/NNP
&/CC
Gas/NNP
reported/VBD
its/PRP$
first/JJ
annual/JJ
loss/NN
in/IN
28/CD
years/NNS
./.
Mr./NNP
Corry/NNP
expected/VBD
the/DT
Texas/NNP
Oil/NNP
&/CC
Gas/NNP
sale/NN
to/TO
delight/VB
Mr./NNP
Icahn/NNP
by/IN
addressing/VBG
his/PRP$
concern/NN
about/IN
boosting/VBG
shareholder/NN
value/NN
./.
But/CC
when/WRB
the/DT
two/CD
men/NNS
met/VBD
in/IN
New/NNP
York/NNP
a/DT
day/NN
after/IN
Mr./NNP
Icahn/NNP
disclosed/VBD
the/DT
rise/NN
in/IN
his/PRP$
USX/NNP
stake/NN
,/,
Mr./NNP
Corry/NNP
learned/VBD
that/IN
Mr./NNP
Icahn/NNP
wanted/VBD
him/PRP
to/TO
sell/VB
all/DT
of/IN
Texas/NNP
Oil/NNP
--/:
not/RB
just/RB
its/PRP$
reserves/NNS
of/IN
about/IN
1.2/CD
trillion/CD
cubic/JJ
feet/NNS
of/IN
natural/JJ
gas/NN
and/CC
28/CD
million/CD
barrels/NNS
of/IN
oil/NN
but/CC
also/RB
its/PRP$
pipeline/NN
,/,
gas-gathering/VBG
and/CC
contract-drilling/VBG
operations/NNS
./.
That/DT
would/MD
leave/VB
USX/NNP
with/IN
Marathon/NNP
,/,
its/PRP$
steel/NN
mills/NNS
and/CC
its/PRP$
diversified/JJ
business/NN
segment/NN
,/,
which/WDT
includes/VBZ
,/,
among/IN
other/JJ
things/NNS
,/,
mineral/NN
and/CC
transportation/NN
products/NNS
./.
Some/DT
speculate/VBP
that/IN
Mr./NNP
Corry/NNP
would/MD
agree/VB
if/IN
he/PRP
could/MD
find/VB
a/DT
buyer/NN
at/IN
the/DT
right/JJ
price/NN
./.
The/DT
problem/NN
is/VBZ
that/DT
Mr./NNP
Icahn/NNP
is/VBZ
pushing/VBG
him/PRP
to/TO
move/VB
faster/RBR
and/CC
further/RBR
in/IN
restructuring/VBG
USX/NNP
than/IN
Mr./NNP
Corry/NNP
had/VBD
planned/VBN
./.
Mr./NNP
Icahn/NNP
has/VBZ
long/RB
believed/VBN
,/,
associates/NNS
say/VBP
,/,
that/IN
the/DT
company/NN
,/,
whose/WP$
1988/CD
sales/NNS
totaled/VBD
$/$
16.88/CD
billion/CD
,/,
is/VBZ
worth/JJ
$/$
70/CD
a/DT
share/NN
if/IN
broken/VBN
up/RP
./.
The/DT
stock/NN
closed/VBD
yesterday/NN
at/IN
$/$
33.625/CD
,/,
giving/VBG
Mr./NNP
Icahn/NNP
's/POS
33.6/CD
million/CD
shares/NNS
a/DT
value/NN
of/IN
$/$
1.13/CD
billion/CD
./.
Mr./NNP
Icahn/NNP
advocates/VBZ
the/DT
sale/NN
of/IN
the/DT
company/NN
's/POS
steel/NN
operations/NNS
,/,
and/CC
Mr./NNP
Corry/NNP
does/VBZ
n't/RB
necessarily/RB
disagree/VB
./.
Unlike/IN
his/PRP$
predecessor/NN
,/,
who/WP
saw/VBD
steel/NN
as/IN
America/NNP
's/POS
backbone/NN
,/,
Mr./NNP
Corry/NNP
tends/VBZ
to/TO
view/VB
it/PRP
as/IN
a/DT
capital-draining/VBG
and/CC
labor-intensive/JJ
business/NN
with/IN
limited/JJ
potential/NN
,/,
associates/NNS
say/VBP
./.
In/IN
the/DT
past/JJ
five/CD
years/NNS
,/,
USX/NNP
has/VBZ
turned/VBN
steel/NN
into/IN
a/DT
profit/NN
maker/NN
by/IN
closing/VBG
several/JJ
plants/NNS
and/CC
reducing/VBG
labor/NN
costs/NNS
./.
But/CC
the/DT
short-term/JJ
outlook/NN
is/VBZ
so-so/JJ
./.
It/PRP
is/VBZ
n't/RB
surprising/JJ
that/IN
Messrs./NNPS
Roderick/NNP
and/CC
Corry/NNP
view/VBP
steel/NN
so/RB
differently/RB
./.
While/IN
Mr./NNP
Roderick/NNP
was/VBD
reared/VBN
in/IN
the/DT
shadows/NNS
of/IN
Pittsburgh/NNP
's/POS
smoking/VBG
mills/NNS
,/,
Mr./NNP
Corry/NNP
grew/VBD
up/RB
in/IN
Cincinnati/NNP
,/,
a/DT
city/NN
nicknamed/VBN
``/``
Porkapolis/NNP
''/''
and/CC
more/RBR
accustomed/JJ
to/TO
pork/NN
chops/NNS
than/IN
pig/NN
iron/NN
./.
He/PRP
has/VBZ
never/RB
met/VBN
Lynn/NNP
Williams/NNP
,/,
the/DT
president/NN
of/IN
the/DT
United/NNP
Steelworkers/NNPS
union/NN
,/,
and/CC
is/VBZ
n't/RB
active/JJ
in/IN
the/DT
industry/NN
's/POS
main/JJ
trade/NN
group/NN
,/,
the/DT
American/NNP
Iron/NNP
and/CC
Steel/NNP
Institute/NNP
,/,
which/WDT
Mr./NNP
Roderick/NNP
served/VBD
as/IN
chairman/NN
./.
``/``
Dave/NNP
thought/VBD
the/DT
country/NN
needed/VBD
a/DT
strong/JJ
U.S./NNP
Steel/NNP
and/CC
,/,
while/IN
Chuck/NNP
agreed/VBD
,/,
he/PRP
was/VBD
more/RBR
apt/JJ
to/TO
say/VB
,/,
`/``
Not/RB
at/IN
any/DT
cost/NN
to/TO
shareholders/NNS
,/,
'/''
''/''
a/DT
former/JJ
executive/NN
says/VBZ
./.
Indeed/RB
,/,
Mr./NNP
Corry/NNP
,/,
at/IN
an/DT
August/NNP
press/NN
conference/NN
,/,
talked/VBD
about/IN
investing/VBG
in/IN
steel/NN
as/RB
long/RB
as/IN
it/PRP
provides/VBZ
a/DT
good/JJ
return/NN
and/CC
``/``
not/RB
a/DT
day/NN
longer/RB
./.
''/''
However/RB
,/,
shedding/VBG
steel/NN
would/MD
run/VB
directly/RB
counter/RB
to/TO
Mr./NNP
Roderick/NNP
's/POS
original/JJ
rationale/NN
for/IN
diversifying/VBG
into/IN
oil/NN
and/CC
gas/NN
:/:
Having/VBG
two/CD
major/JJ
products/NNS
would/MD
lessen/VB
the/DT
company/NN
's/POS
vulnerability/NN
to/TO
one/CD
market/NN
's/POS
down/JJ
cycle/NN
and/CC
help/VB
smooth/VB
out/RP
the/DT
flow/NN
of/IN
cash/NN
and/CC
earnings/NNS
./.
As/IN
Mr./NNP
Roderick/NNP
once/RB
said/VBD
:/:
``/``
We/PRP
're/VBP
a/DT
two-product/JJ
company/NN
and/CC
,/,
boy/UH
,/,
if/IN
you/PRP
ca/MD
n't/RB
figure/VB
out/RP
the/DT
value/NN
of/IN
those/DT
two/CD
parts/NNS
,/,
you/PRP
are/VBP
so/RB
damn/RB
dumb/JJ
that/IN
you/PRP
do/VBP
n't/RB
belong/VB
on/IN
Wall/NNP
Street/NNP
./.
''/''
Moreover/RB
,/,
the/DT
opportunity/NN
to/TO
sell/VB
steel/NN
at/IN
a/DT
price/NN
acceptable/JJ
to/TO
USX/NNP
may/MD
be/VB
gone/VBN
,/,
for/IN
now/RB
./.
``/``
The/DT
time/NN
has/VBZ
passed/VBN
for/IN
us/PRP
to/TO
spin/VB
off/RP
steel/NN
,/,
''/''
either/CC
in/IN
a/DT
public/JJ
offering/NN
or/CC
to/TO
a/DT
buyer/NN
,/,
one/CD
executive/NN
contends/VBZ
./.
About/IN
the/DT
only/JJ
way/NN
that/IN
USX/NNP
now/RB
can/MD
get/VB
out/IN
of/IN
steel/NN
is/VBZ
to/TO
dish/VB
it/PRP
out/RP
,/,
piece/NN
by/IN
piece/NN
,/,
in/IN
separate/JJ
joint/JJ
ventures/NNS
,/,
he/PRP
adds/VBZ
./.
With/IN
Mr./NNP
Icahn/NNP
breathing/VBG
down/IN
his/PRP$
neck/NN
,/,
however/RB
,/,
Mr./NNP
Corry/NNP
may/MD
have/VB
little/JJ
choice/NN
but/CC
to/TO
sell/VB
at/IN
a/DT
weak/JJ
price/NN
,/,
even/RB
if/IN
it/PRP
means/VBZ
losing/VBG
some/DT
steel-related/JJ
tax-loss/JJ
carryforwards/NNS
./.
That/DT
would/MD
leave/VB
USX/NNP
essentially/RB
an/DT
oil/NN
company/NN
with/IN
Marathon/NNP
as/IN
its/PRP$
core/NN
./.
Marathon/NNP
has/VBZ
benefited/VBN
from/IN
higher/JJR
crude-oil/NN
prices/NNS
and/CC
strong/JJ
demand/NN
for/IN
refined/JJ
products/NNS
./.
Oil/NN
has/VBZ
long/RB
been/VBN
Mr./NNP
Corry/NNP
's/POS
pet/NN
./.
Indeed/RB
,/,
when/WRB
the/DT
Bush/NNP
administration/NN
finally/RB
decided/VBD
this/DT
summer/NN
to/TO
renew/VB
import/NN
restrictions/NNS
--/:
arguably/RB
the/DT
most/RBS
important/JJ
decision/NN
to/TO
affect/VB
the/DT
steel/NN
industry/NN
in/IN
five/CD
years/NNS
--/:
Mr./NNP
Corry/NNP
and/CC
his/PRP$
directors/NNS
were/VBD
aboard/IN
helicopters/NNS
,/,
high/RB
above/IN
Marathon/NNP
's/POS
rich/JJ
oil/NN
reserves/NNS
in/IN
the/DT
North/NNP
Sea/NNP
./.
Should/MD
USX/NNP
be/VB
left/VBN
with/IN
only/JJ
Marathon/NNP
,/,
Mr./NNP
Corry/NNP
might/MD
well/RB
feel/VB
pushed/VBN
to/TO
scout/VB
out/RP
other/JJ
energy/NN
companies/NNS
./.
However/RB
,/,
even/RB
USX/NNP
executives/NNS
who/WP
work/VBP
closely/RB
with/IN
him/PRP
are/VBP
n't/RB
sure/JJ
about/IN
his/PRP$
long-term/JJ
goals/NNS
./.
``/``
I/PRP
do/VBP
n't/RB
think/VB
he/PRP
has/VBZ
a/DT
clear/JJ
sense/NN
of/IN
where/WRB
he/PRP
wants/VBZ
the/DT
company/NN
to/TO
go/VB
,/,
''/''
one/CD
says/VBZ
./.
Right/RB
now/RB
,/,
the/DT
executive/NN
adds/VBZ
,/,
``/``
he/PRP
wants/VBZ
to/TO
continue/VB
to/TO
focus/VB
on/IN
paying/VBG
down/RP
''/''
USX/NNP
's/POS
debt/NN
by/IN
selling/VBG
assets/NNS
./.
One/CD
thing/NN
is/VBZ
certain/JJ
,/,
however/RB
:/:
Mr./NNP
Corry/NNP
,/,
while/IN
studying/VBG
other/JJ
options/NNS
,/,
probably/RB
wo/MD
n't/RB
make/VB
a/DT
major/JJ
move/NN
until/IN
he/PRP
's/VBZ
clear/JJ
about/IN
Mr./NNP
Icahn/NNP
's/POS
intentions/NNS
./.
And/CC
then/RB
,/,
``/``
he/PRP
wo/MD
n't/RB
panic/VB
,/,
''/''
says/VBZ
J./NNP
Bruce/NNP
Johnston/NNP
,/,
a/DT
former/JJ
USX/NNP
executive/NN
and/CC
now/RB
a/DT
labor/NN
and/CC
benefit/NN
consultant/NN
with/IN
Adler/NNP
Cohen/NNP
&/CC
Grigsby/NNP
in/IN
Pittsburgh/NNP
./.
Mr./NNP
Corry/NNP
learned/VBD
presence/NN
under/IN
fire/NN
when/WRB
,/,
as/IN
vice/NN
president/NN
of/IN
corporate/JJ
planning/NN
,/,
he/PRP
handled/VBD
what/WP
Mr./NNP
Johnston/NNP
calls/VBZ
``/``
don't-con-me/JJ
''/''
negotiations/NNS
that/WDT
led/VBD
to/TO
USX/NNP
's/VBZ
shedding/VBG
of/IN
a/DT
wide/JJ
array/NN
of/IN
assets/NNS
ranging/VBG
from/IN
chemicals/NNS
to/TO
construction/NN
./.
When/WRB
negotiating/VBG
,/,
Mr./NNP
Corry/NNP
played/VBD
his/PRP$
cards/NNS
close/RB
to/TO
the/DT
vest/NN
./.
Johnnie/NNP
Johnson/NNP
,/,
who/WP
worked/VBD
for/IN
Mr./NNP
Corry/NNP
in/IN
strategic/JJ
planning/NN
,/,
recalls/VBZ
how/WRB
his/PRP$
boss/NN
would/MD
routinely/RB
ask/VB
a/DT
subordinate/NN
to/TO
research/VB
an/DT
entire/JJ
industry/NN
to/TO
target/VB
acquisition/NN
candidates/NNS
./.
``/``
What/WP
he/PRP
really/RB
wanted/VBD
to/TO
know/VB
was/VBD
about/IN
a/DT
particular/JJ
company/NN
,/,
but/CC
you/PRP
did/VBD
n't/RB
know/VB
that/DT
./.
He/PRP
wanted/VBD
your/PRP$
own/JJ
unbiased/JJ
,/,
virgin/JJ
opinion/NN
,/,
''/''
says/VBZ
Mr./NNP
Johnson/NNP
,/,
now/RB
managing/VBG
director/NN
at/IN
Georgeson/NNP
&/CC
Co./NNP
,/,
a/DT
proxy-solicitation/JJ
and/CC
investor-relations/JJ
firm/NN
./.
Ever/RB
the/DT
pragmatist/NN
,/,
Mr./NNP
Corry/NNP
said/VBD
in/IN
August/NNP
that/IN
he/PRP
realized/VBD
that/IN
USX/NNP
is/VBZ
on/IN
``/``
acquisition/NN
screens/NNS
all/DT
over/IN
the/DT
country/NN
./.
''/''
``/``
It/PRP
's/VBZ
part/NN
of/IN
the/DT
capitalistic/JJ
market/NN
system/NN
that/DT
equity/NN
can/MD
be/VB
bought/VBN
and/CC
equity/NN
is/VBZ
bought/VBN
,/,
''/''
he/PRP
said/VBD
./.
USX/NNP
,/,
he/PRP
noted/VBD
,/,
was/VBD
formed/VBN
88/CD
years/NNS
ago/RB
,/,
``/``
by/IN
in/IN
effect/NN
buying/VBG
out/RP
a/DT
bunch/NN
of/IN
other/JJ
companies/NNS
.../:
./.
People/NNS
got/VBD
rich/JJ
through/IN
takeovers/NNS
in/IN
those/DT
days/NNS
,/,
as/IN
they/PRP
do/VBP
today/NN
./.
''/''
Thomas/NNP
F./NNP
O'Boyle/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Westinghouse/NNP
Electric/NNP
Corp./NNP
said/VBD
it/PRP
will/MD
buy/VB
Shaw-Walker/NNP
Co/NNP
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Shaw-Walker/NNP
,/,
based/VBN
in/IN
Muskegon/NNP
,/,
Mich./NNP
,/,
makes/VBZ
metal/NN
files/NNS
and/CC
desks/NNS
,/,
and/CC
seating/NN
and/CC
office/NN
systems/NNS
furniture/NN
./.
Israel/NNP
has/VBZ
launched/VBN
a/DT
new/JJ
effort/NN
to/TO
prove/VB
the/DT
Palestine/NNP
Liberation/NNP
Organization/NNP
continues/VBZ
to/TO
practice/VB
terrorism/NN
,/,
and/CC
thus/RB
to/TO
persuade/VB
the/DT
U.S./NNP
to/TO
break/VB
off/RP
talks/NNS
with/IN
the/DT
group/NN
./.
U.S./NNP
officials/NNS
,/,
however/RB
,/,
said/VBD
they/PRP
are/VBP
n't/RB
buying/VBG
the/DT
Israeli/JJ
argument/NN
./.
Israeli/JJ
counterterrorism/NN
officials/NNS
provided/VBD
the/DT
State/NNP
Department/NNP
with/IN
a/DT
20-page/JJ
list/NN
of/IN
recent/JJ
terrorist/JJ
incidents/NNS
they/PRP
attribute/VBP
directly/RB
to/TO
forces/NNS
controlled/VBN
by/IN
PLO/NNP
Chairman/NNP
Yasser/NNP
Arafat/NNP
./.
Mr./NNP
Arafat/NNP
publicly/RB
renounced/VBD
terrorism/NN
Dec./NNP
15/CD
,/,
satisfying/VBG
the/DT
U.S./NNP
precondition/NN
for/IN
a/DT
direct/JJ
``/``
dialogue/NN
''/''
with/IN
the/DT
PLO/NNP
./.
A/DT
U.S./NNP
counterterrorism/NN
official/NN
said/VBD
experts/NNS
are/VBP
studying/VBG
the/DT
Israeli/JJ
list/NN
./.
``/``
We/PRP
have/VBP
no/DT
independent/JJ
evidence/NN
linking/VBG
Fatah/NNP
to/TO
any/DT
acts/NNS
of/IN
terrorism/NN
since/IN
Dec./NNP
15/CD
,/,
1988/CD
,/,
''/''
he/PRP
said/VBD
,/,
referring/VBG
to/TO
the/DT
specific/JJ
PLO/NNP
group/NN
that/WDT
Mr./NNP
Arafat/NNP
heads/NNS
./.
``/``
So/RB
far/RB
,/,
this/DT
list/NN
does/VBZ
n't/RB
change/VB
our/PRP$
view/NN
./.
Israel/NNP
wants/VBZ
to/TO
end/VB
the/DT
dialogue/NN
,/,
but/CC
our/PRP$
analysts/NNS
take/VBP
a/DT
different/JJ
view/NN
than/IN
theirs/PRP
./.
''/''
Israeli/NNP
Prime/NNP
Minister/NNP
Yitzhak/NNP
Shamir/NNP
's/POS
top/JJ
adviser/NN
on/IN
counterterrorism/NN
,/,
Yigal/NNP
Carmon/NNP
,/,
was/VBD
here/RB
Monday/NNP
to/TO
present/VB
the/DT
report/NN
to/TO
members/NNS
of/IN
Congress/NNP
,/,
reporters/NNS
and/CC
others/NNS
./.
Mr./NNP
Carmon/NNP
said/VBD
he/PRP
also/RB
presented/VBD
the/DT
list/NN
last/JJ
week/NN
to/TO
William/NNP
Brown/NNP
,/,
U.S./NNP
Ambassador/NNP
to/TO
Israel/NNP
./.
Separately/NNP
,/,
the/DT
New/NNP
York/NNP
Times/NNP
reported/VBD
that/IN
the/DT
Israeli/JJ
government/NN
had/VBD
provided/VBN
its/PRP$
correspondent/NN
in/IN
Jerusalem/NNP
with/IN
different/JJ
documents/NNS
that/IN
Israel/NNP
said/VBD
prove/VB
the/DT
PLO/NNP
has/VBZ
been/VBN
conducting/VBG
terrorism/NN
from/IN
the/DT
occupied/JJ
Arab/JJ
territories/NNS
./.
The/DT
State/NNP
Department/NNP
said/VBD
it/PRP
has/VBZ
n't/RB
yet/RB
seen/VBN
copies/NNS
of/IN
those/DT
papers/NNS
./.
``/``
If/IN
the/DT
dialogue/NN
was/VBD
based/VBN
on/IN
the/DT
assumption/NN
that/IN
Arafat/NNP
or/CC
the/DT
PLO/NNP
would/MD
stop/VB
terrorism/NN
,/,
and/CC
we/PRP
have/VBP
evidence/NN
of/IN
continued/JJ
terrorism/NN
,/,
what/WP
would/MD
be/VB
the/DT
logical/JJ
conclusion/NN
?/.
''/''
Mr./NNP
Carmon/NNP
asked/VBD
./.
Israel/NNP
has/VBZ
long/RB
claimed/VBN
Mr./NNP
Arafat/NNP
never/RB
meant/VBD
to/TO
renounce/VB
terrorism/NN
,/,
particularly/RB
because/IN
he/PRP
and/CC
his/PRP$
lieutenants/NNS
reserved/VBD
the/DT
right/NN
to/TO
press/VB
``/``
armed/JJ
struggle/NN
''/''
against/IN
the/DT
Jewish/JJ
state/NN
./.
Now/RB
,/,
Jerusalem/NNP
says/VBZ
it/PRP
is/VBZ
backing/VBG
up/RP
its/PRP$
contention/NN
with/IN
detailed/JJ
accounts/NNS
of/IN
alleged/JJ
terrorist/JJ
acts/NNS
and/CC
plans/NNS
linked/VBN
to/TO
Mr./NNP
Arafat/NNP
./.
It/PRP
blames/VBZ
most/JJS
of/IN
these/DT
on/IN
Fatah/NN
./.
The/DT
new/JJ
accusations/NNS
come/VBP
at/IN
a/DT
delicate/JJ
time/NN
in/IN
U.S./NNP
efforts/NNS
to/TO
bring/VB
about/RP
talks/NNS
between/IN
Israel/NNP
and/CC
Palestinian/JJ
representatives/NNS
./.
The/DT
State/NNP
Department/NNP
said/VBD
it/PRP
had/VBD
received/VBN
a/DT
new/JJ
letter/NN
on/IN
the/DT
subject/NN
from/IN
Israeli/NNP
Foreign/NNP
Minister/NNP
Moshe/NNP
Arens/NNP
,/,
restating/VBG
Israel/NNP
's/POS
previous/JJ
objection/NN
to/TO
negotiating/VBG
with/IN
any/DT
Palestinian/NNP
tied/VBN
to/TO
the/DT
PLO/NNP
./.
Deciding/VBG
what/WP
constitutes/VBZ
``/``
terrorism/NN
''/''
can/MD
be/VB
a/DT
legalistic/JJ
exercise/NN
./.
The/DT
U.S./NNP
defines/VBZ
it/PRP
as/IN
``/``
premediated/JJ
,/,
politically/RB
motivated/JJ
violence/NN
perpetrated/VBN
against/IN
noncombatant/JJ
targets/NNS
by/IN
subnational/JJ
groups/NNS
or/CC
clandestine/JJ
state/NN
agents/NNS
./.
''/''
To/TO
meet/VB
the/DT
U.S./NNP
criteria/NNS
,/,
Israel/NNP
contended/VBD
it/PRP
only/RB
listed/VBD
incidents/NNS
that/WDT
involved/VBD
civilians/NNS
and/CC
occurred/VBD
inside/IN
its/PRP$
pre-1967/JJ
borders/NNS
./.
At/IN
the/DT
heart/NN
of/IN
Israel/NNP
's/POS
report/NN
is/VBZ
a/DT
list/NN
of/IN
a/DT
dozen/NN
incidents/NNS
Jerusalem/NNP
attributes/VBZ
to/TO
Fatah/NNP
,/,
including/VBG
the/DT
use/NN
of/IN
bombs/NNS
and/CC
Molotov/NNP
cocktails/NNS
./.
But/CC
U.S./NNP
officials/NNS
say/VB
they/PRP
are/VBP
n't/RB
satisfied/VBN|JJ
these/DT
incidents/NNS
constitute/VBP
terrorism/NN
because/IN
they/PRP
may/MD
be/VB
offshoots/NNS
of/IN
the/DT
intifadah/NN
,/,
the/DT
Palestinian/JJ
rebellion/NN
in/IN
the/DT
occupied/JJ
territories/NNS
,/,
which/WDT
the/DT
U.S./NNP
does/VBZ
n't/RB
classify/VB
as/IN
terrorism/NN
./.
In/IN
addition/NN
,/,
the/DT
officials/NNS
say/VBP
Israel/NNP
has/VBZ
n't/RB
presented/VBN
convincing/JJ
evidence/NN
these/DT
acts/NNS
were/VBD
ordered/VBN
by/IN
Fatah/NNP
or/CC
by/IN
any/DT
group/NN
Mr./NNP
Arafat/NNP
controls/VBZ
./.
U.S./NNP
terrorism/NN
experts/NNS
also/RB
say/VBP
they/PRP
are/VBP
highly/RB
uncertain/JJ
about/IN
the/DT
veracity/NN
of/IN
the/DT
separate/JJ
documents/NNS
leaked/VBN
to/TO
the/DT
New/NNP
York/NNP
Times/NNP
./.
The/DT
papers/NNS
,/,
which/WDT
Israel/NNP
says/VBZ
were/VBD
discovered/VBN
in/IN
Israeli-occupied/JJ
Gaza/NNP
,/,
refer/VBP
to/TO
terrorist/JJ
acts/NNS
to/TO
be/VB
carried/VBN
out/JJ
in/IN
the/DT
name/NN
of/IN
a/DT
group/NN
called/VBN
``/``
the/DT
Revolutionary/NNP
Eagles/NNPS
./.
''/''
Some/DT
supporters/NNS
of/IN
Israel/NNP
say/NNP
U.S./VBP
policy/NN
on/IN
Palestinian/JJ
terrorism/NN
is/VBZ
colored/VBN
by/IN
an/DT
intense/JJ
desire/NN
to/TO
maintain/VB
the/DT
dialogue/NN
with/IN
the/DT
PLO/NNP
./.
But/CC
State/NNP
Department/NNP
officials/NNS
accuse/VBP
Israel/NNP
of/IN
leaking/VBG
questionable/JJ
claims/NNS
to/TO
embarrass/VB
the/DT
U.S/NNP
./.
The/DT
dollar/NN
finished/VBD
lower/JJR
yesterday/NN
,/,
after/IN
tracking/VBG
another/DT
rollercoaster/JJ
session/NN
on/IN
Wall/NNP
Street/NNP
./.
Concern/NN
about/IN
the/DT
volatile/JJ
U.S./NNP
stock/NN
market/NN
had/VBD
faded/VBN
in/IN
recent/JJ
sessions/NNS
,/,
and/CC
traders/NNS
appeared/VBD
content/JJ
to/TO
let/VB
the/DT
dollar/NN
languish/VB
in/IN
a/DT
narrow/JJ
range/NN
until/IN
tomorrow/NN
,/,
when/WRB
the/DT
preliminary/JJ
report/NN
on/IN
third-quarter/JJ
U.S./NNP
gross/JJ
national/JJ
product/NN
is/VBZ
released/VBN
./.
But/CC
seesaw/JJ
gyrations/NNS
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
yesterday/NN
put/VBD
Wall/NNP
Street/NNP
back/RB
in/IN
the/DT
spotlight/NN
and/CC
inspired/VBN
market/NN
participants/NNS
to/TO
bid/VB
the/DT
U.S./NNP
unit/NN
lower/RBR
./.
UAL/NNP
's/POS
decision/NN
to/TO
remain/VB
an/DT
independent/JJ
company/NN
sent/VBD
share/NN
prices/NNS
tumbling/VBG
./.
By/IN
midmorning/NN
,/,
the/DT
DJIA/NNP
had/VBD
plunged/VBN
80/CD
points/NNS
and/CC
foreign-exchange/JJ
dealers/NNS
quickly/RB
drove/VBD
the/DT
dollar/NN
down/RP
./.
When/WRB
the/DT
DJIA/NNP
modestly/RB
rebounded/VBD
,/,
the/DT
dollar/NN
bounced/VBD
back/RP
in/IN
choppy/JJ
dealings/NNS
but/CC
ended/VBD
the/DT
day/NN
below/IN
the/DT
levels/NNS
of/IN
late/RB
Monday/NNP
./.
Stock/NN
prices/NNS
,/,
meanwhile/RB
,/,
posted/VBD
significant/JJ
gains/NNS
in/IN
later/RB
trading/NN
and/CC
closed/VBD
down/RB
by/IN
only/RB
3.69/CD
points/NNS
on/IN
the/DT
day/NN
./.
Some/DT
dealers/NNS
said/VBD
that/IN
the/DT
market/NN
's/POS
strong/JJ
reaction/NN
to/TO
Wall/NNP
Street/NNP
reflects/VBZ
a/DT
general/JJ
uneasiness/NN
about/IN
the/DT
dollar/NN
./.
They/PRP
added/VBD
that/IN
the/DT
DJIA/NNP
's/POS
swift/JJ
drop/NN
proved/VBD
an/DT
easy/JJ
excuse/NN
for/IN
the/DT
market/NN
to/TO
drive/VB
the/DT
U.S./NNP
currency/NN
in/IN
the/DT
direction/NN
it/PRP
was/VBD
already/RB
headed/VBN
./.
In/IN
late/JJ
New/NNP
York/NNP
trading/NN
yesterday/NN
,/,
the/DT
dollar/NN
was/VBD
quoted/VBN
at/IN
1.8355/CD
marks/NNS
,/,
down/RB
from/IN
1.8470/CD
marks/NNS
Monday/NNP
,/,
and/CC
at/IN
141.45/CD
yen/NN
,/,
down/RB
from/IN
141.90/CD
yen/NN
late/RB
Monday/NNP
./.
Sterling/NN
was/VBD
quoted/VBN
at/IN
$/$
1.6055/CD
,/,
up/RB
from/IN
$/$
1.6030/CD
late/RB
Monday/NNP
./.
In/IN
Tokyo/NNP
Wednesday/NNP
,/,
the/DT
U.S./NNP
currency/NN
opened/VBD
for/IN
trading/NN
at/IN
141.57/CD
yen/NN
,/,
down/RB
from/IN
Tuesday/NNP
's/POS
Tokyo/NNP
close/NN
of/IN
142.10/CD
yen/NN
./.
Tom/NNP
Trettien/NNP
,/,
a/DT
vice/NN
president/NN
with/IN
Banque/NNP
Paribas/NNP
in/IN
New/NNP
York/NNP
,/,
sees/VBZ
a/DT
break/NN
in/IN
the/DT
dollar/NN
's/POS
long-term/JJ
upward/JJ
trend/NN
,/,
a/DT
trend/NN
that/WDT
began/VBD
in/IN
January/NNP
1988/CD
./.
He/PRP
argues/VBZ
that/IN
the/DT
dollar/NN
is/VBZ
now/RB
``/``
moving/VBG
sideways/RB
,/,
''/''
adding/VBG
that/IN
``/``
the/DT
next/JJ
leg/NN
could/MD
be/VB
the/DT
beginning/NN
of/IN
a/DT
longer/JJR
term/NN
bearish/JJ
phase/NN
./.
''/''
Analysts/NNS
peg/VBP
the/DT
dollar/NN
's/POS
recent/JJ
weakness/NN
to/TO
an/DT
underlying/JJ
slowdown/NN
in/IN
the/DT
U.S./NNP
economy/NN
,/,
highlighted/VBN
by/IN
recent/JJ
economic/JJ
data/NNS
,/,
particularly/RB
a/DT
surprisingly/RB
sharp/JJ
widening/NN
in/IN
the/DT
August/NNP
U.S./NNP
trade/NN
gap/NN
./.
They/PRP
also/RB
point/VB
out/RP
that/IN
narrowing/VBG
interest-rate/JJ
differentials/NNS
between/IN
the/DT
U.S./NNP
and/CC
its/PRP$
major/JJ
trading/NN
partners/NNS
tend/VBP
to/TO
make/VB
the/DT
U.S./NNP
currency/NN
less/RBR
attractive/JJ
to/TO
foreign/JJ
investors/NNS
./.
Despite/IN
several/JJ
spurts/NNS
of/IN
dollar/NN
trading/NN
,/,
it/PRP
was/VBD
noted/VBN
that/IN
mark-yen/JJ
cross/JJ
trade/NN
grabbed/VBD
much/JJ
of/IN
the/DT
market/NN
's/POS
attention/NN
./.
Following/VBG
the/DT
dive/NN
in/IN
U.S./NNP
stocks/NNS
,/,
the/DT
mark/NN
has/VBZ
strengthened/VBN
more/RBR
than/IN
its/PRP$
major/JJ
counterparts/NNS
./.
Traders/NNS
attribute/VBP
the/DT
mark/NN
's/POS
surge/NN
to/TO
a/DT
robust/JJ
West/JJ
German/JJ
economy/NN
and/CC
higher/JJR
rate/NN
differentials/NNS
./.
But/CC
,/,
they/PRP
add/VBP
that/IN
the/DT
mark/NN
's/POS
strength/NN
is/VBZ
in/IN
part/NN
a/DT
reflection/NN
of/IN
a/DT
shift/NN
away/RB
from/IN
U.S./NNP
assets/NNS
by/IN
Japanese/JJ
investors/NNS
into/IN
West/JJ
German/JJ
investments/NNS
./.
``/``
The/DT
question/NN
remains/VBZ
:/:
how/WRB
much/RB
can/MD
the/DT
West/JJ
German/JJ
market/NN
absorb/VB
?/.
''/''
says/VBZ
one/CD
senior/JJ
dealer/NN
./.
Some/DT
dealers/NNS
say/VBP
that/IN
Bank/NNP
of/IN
Japan/NNP
Governor/NNP
Satoshi/NNP
Sumita/NNP
's/POS
reassurance/NN
that/IN
Japanese/JJ
monetary/JJ
policy/NN
wo/MD
n't/RB
be/VB
changed/VBN
for/IN
the/DT
time/NN
being/JJ
has/VBZ
given/VBN
investors/NNS
an/DT
added/JJ
excuse/NN
to/TO
push/VB
the/DT
yen/NN
down/RB
even/RB
further/RBR
against/IN
the/DT
mark/NN
./.
Despite/IN
the/DT
yen/NN
's/POS
weakness/NN
with/IN
respect/NN
to/TO
the/DT
mark/NN
,/,
Tokyo/NNP
traders/NNS
say/VBP
they/PRP
do/VBP
n't/RB
expect/VB
the/DT
Bank/NNP
of/IN
Japan/NNP
to/TO
take/VB
any/DT
action/NN
to/TO
support/VB
the/DT
Japanese/JJ
currency/NN
on/IN
that/DT
front/NN
./.
Meanwhile/RB
,/,
sterling/NN
slumped/VBD
on/IN
news/NN
that/IN
the/DT
United/NNP
Kingdom/NNP
posted/VBD
a/DT
wider-than-expected/JJ
trade/NN
deficit/NN
in/IN
September/NNP
./.
The/DT
news/NN
also/RB
knocked/VBD
the/DT
British/JJ
unit/NN
to/TO
below/IN
2.95/CD
marks/NNS
in/IN
London/NNP
,/,
but/CC
a/DT
bout/NN
of/IN
short-covering/NN
helped/VBD
sterling/NN
recoup/VB
some/DT
of/IN
its/PRP$
earlier/JJR
losses/NNS
./.
On/IN
the/DT
Commodity/NNP
Exchange/NNP
in/IN
New/NNP
York/NNP
,/,
gold/NN
for/IN
current/JJ
delivery/NN
jumped/VBD
$/$
3.20/CD
to/TO
$/$
370.20/CD
an/DT
ounce/NN
./.
The/DT
close/NN
was/VBD
the/DT
highest/JJS
since/IN
Aug./NNP
15/CD
./.
Estimated/JJ
volume/NN
was/VBD
a/DT
light/JJ
two/CD
million/CD
ounces/NNS
./.
In/IN
early/JJ
trading/NN
in/IN
Hong/NNP
Kong/NNP
Wednesday/NNP
,/,
gold/NN
was/VBD
quoted/VBN
at/IN
$/$
368.25/CD
an/DT
ounce/NN
./.
Boston/NNP
Co./NNP
,/,
the/DT
upper-crust/JJ
financial/JJ
services/NNS
concern/NN
that/WDT
was/VBD
rocked/VBN
by/IN
a/DT
management/NN
scandal/NN
late/RB
last/JJ
year/NN
,/,
has/VBZ
had/VBN
a/DT
sharp/JJ
drop/NN
in/IN
profitability/NN
--/:
mainly/RB
because/IN
a/DT
high-risk/JJ
bet/NN
on/IN
interest/NN
rates/NNS
backfired/VBD
./.
Boston/NNP
Co./NNP
's/POS
fall/NN
from/IN
grace/NN
is/VBZ
bad/JJ
news/NN
for/IN
its/PRP$
parent/NN
,/,
Shearson/NNP
Lehman/NNP
Hutton/NNP
Holdings/NNP
Inc./NNP
,/,
which/WDT
has/VBZ
relied/VBN
heavily/RB
on/IN
the/DT
banking/NN
and/CC
money/NN
management/NN
unit/NN
's/POS
contributions/NNS
in/IN
recent/JJ
years/NNS
./.
In/IN
1988/CD
,/,
for/IN
example/NN
,/,
Boston/NNP
Co./NNP
had/VBD
an/DT
estimated/JJ
pretax/JJ
profit/NN
of/IN
at/IN
least/JJS
$/$
110/CD
million/CD
,/,
while/IN
Shearson/NNP
managed/VBD
net/JJ
income/NN
of/IN
just/RB
$/$
96/CD
million/CD
./.
Shearson/NNP
does/VBZ
n't/RB
break/VB
out/RP
the/DT
earnings/NNS
of/IN
its/PRP$
subsidiaries/NNS
./.
But/CC
people/NNS
familiar/JJ
with/IN
Boston/NNP
Co./NNP
's/POS
performance/NN
say/VBP
the/DT
unit/NN
had/VBD
profit/NN
of/IN
around/RB
$/$
17/CD
million/CD
for/IN
the/DT
third/JJ
quarter/NN
,/,
after/IN
barely/RB
breaking/VBG
even/RB
for/IN
the/DT
first/JJ
six/CD
months/NNS
./.
Shearson/NNP
,/,
meanwhile/RB
,/,
posted/VBD
net/JJ
income/NN
of/IN
$/$
106/CD
million/CD
for/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
the/DT
year/NN
,/,
down/RB
slightly/RB
from/IN
$/$
110/CD
million/CD
for/IN
the/DT
year-ago/JJ
period/NN
./.
Moody/NNP
's/POS
Investors/NNP
Service/NNP
Inc./NNP
last/JJ
week/NN
downgraded/VBD
the/DT
long-term/JJ
deposit/NN
rating/NN
of/IN
Boston/NNP
Co./NNP
's/POS
Boston/NNP
Safe/NNP
Deposit/NNP
&/CC
Trust/NNP
Co./NNP
subsidiary/NN
,/,
to/TO
single-A-1/JJ
from/IN
double-A-3/JJ
,/,
citing/VBG
problems/NNS
in/IN
the/DT
company/NN
's/VBZ
``/``
aggressively/RB
managed/VBN
securities/NNS
portfolio/NN
./.
''/''
John/NNP
Kriz/NNP
,/,
a/DT
Moody/NNP
's/POS
vice/NN
president/NN
,/,
said/VBD
Boston/NNP
Safe/NNP
Deposit/NNP
's/POS
performance/NN
has/VBZ
been/VBN
hurt/VBN
this/DT
year/NN
by/IN
a/DT
mismatch/NN
in/IN
the/DT
maturities/NNS
of/IN
its/PRP$
assets/NNS
and/CC
liabilities/NNS
./.
The/DT
mismatch/NN
exposed/VBD
the/DT
company/NN
to/TO
a/DT
high/JJ
degree/NN
of/IN
interest-rate/NN
risk/NN
,/,
and/CC
when/WRB
rates/NNS
moved/VBD
unfavorably/RB
--/:
beginning/VBG
late/RB
last/JJ
year/NN
and/CC
continuing/VBG
into/IN
this/DT
year/NN
--/:
``/``
it/PRP
cost/VBD
them/PRP
,/,
''/''
Mr./NNP
Kriz/NNP
said/VBD
./.
Mr./NNP
Kriz/NNP
noted/VBD
that/IN
Boston/NNP
Safe/NNP
Deposit/NNP
``/``
has/VBZ
taken/VBN
some/DT
actions/NNS
to/TO
better/RBR
control/VB
asset-liability/JJ
management/NN
and/CC
improve/VB
controls/NNS
in/IN
general/JJ
,/,
and/CC
we/PRP
think/VBP
these/DT
will/MD
serve/VB
to/TO
improve/VB
credit/NN
quality/NN
./.
''/''
As/IN
some/DT
securities/NNS
mature/VBP
and/CC
the/DT
proceeds/NNS
are/VBP
reinvested/VBN
,/,
the/DT
problems/NNS
ought/MD
to/TO
ease/VB
,/,
he/PRP
said/VBD
./.
But/CC
he/PRP
also/RB
cited/VBD
concerns/NNS
over/IN
the/DT
company/NN
's/POS
mortgage/NN
exposure/NN
in/IN
the/DT
troubled/JJ
New/NNP
England/NNP
real/JJ
estate/NN
market/NN
./.
Boston/NNP
Co./NNP
officials/NNS
declined/VBD
to/TO
comment/VB
on/IN
Moody/NNP
's/POS
action/NN
or/CC
on/IN
the/DT
unit/NN
's/POS
financial/JJ
performance/NN
this/DT
year/NN
--/:
except/IN
to/TO
deny/VB
a/DT
published/JJ
report/NN
that/IN
outside/JJ
accountants/NNS
had/VBD
discovered/VBN
evidence/NN
of/IN
significant/JJ
accounting/JJ
errors/NNS
in/IN
the/DT
first/JJ
three/CD
quarters/NNS
'/POS
results/NNS
./.
An/DT
accounting/NN
controversy/NN
at/IN
the/DT
end/NN
of/IN
last/JJ
year/NN
forced/VBD
Boston/NNP
Co./NNP
to/TO
admit/VB
it/PRP
had/VBD
overstated/VBN
pretax/JJ
profits/NNS
by/IN
some/RB
$/$
44/CD
million/CD
./.
The/DT
resulting/VBG|JJ
scandal/NN
led/VBD
to/TO
the/DT
firing/NN
of/IN
James/NNP
N./NNP
von/NNP
Germeten/NNP
as/IN
Boston/NNP
Co./NNP
's/POS
president/NN
and/CC
to/TO
the/DT
resignations/NNS
of/IN
the/DT
company/NN
's/POS
chief/JJ
financial/JJ
officer/NN
and/CC
treasurer/NN
./.
The/DT
executives/NNS
were/VBD
accused/VBN
of/IN
improperly/RB
deferring/VBG
expenses/NNS
and/CC
booking/VBG
revenue/NN
early/RB
,/,
in/IN
an/DT
effort/NN
to/TO
dress/VB
up/RP
results/NNS
--/:
and/CC
perhaps/RB
bolster/VB
performance-related/JJ
bonuses/NNS
./.
Mr./NNP
von/NNP
Germeten/NNP
,/,
in/IN
turn/NN
,/,
attributed/VBD
the/DT
controversy/NN
to/TO
judgmental/JJ
errors/NNS
by/IN
accountants/NNS
and/CC
accused/VBD
Shearson/NNP
of/IN
conducting/VBG
a/DT
``/``
witch/NN
hunt/NN
./.
''/''
Mr./NNP
Kriz/NNP
of/IN
Moody/NNP
's/POS
said/VBD
the/DT
problems/NNS
in/IN
the/DT
securities/NNS
portfolio/NN
stem/NN
largely/RB
from/IN
positions/NNS
taken/VBN
last/JJ
year/NN
./.
The/DT
company/NN
's/POS
current/JJ
management/NN
found/VBD
itself/PRP
``/``
locked/VBN
into/IN
this/DT
,/,
''/''
he/PRP
said/VBD
./.
Mexico/NNP
exported/VBD
an/DT
average/NN
of/IN
1,296,800/CD
barrels/NNS
of/IN
crude/NN
oil/NN
a/DT
day/NN
at/IN
an/DT
average/NN
of/IN
$/$
15.31/CD
a/DT
barrel/NN
during/IN
1989/CD
's/POS
first/JJ
eight/CD
months/NNS
for/IN
a/DT
total/NN
of/IN
$/$
4.82/CD
billion/CD
,/,
Petroleos/NNP
Mexicanos/NNP
S.A./NNP
said/VBD
./.
The/DT
state/NN
petroleum/NN
monopoly/NN
said/VBD
sales/NNS
in/IN
the/DT
period/NN
gained/VBD
15/CD
%/NN
,/,
and/CC
$/$
262.4/CD
million/CD
more/JJR
than/IN
originally/RB
projected/VBN
at/IN
an/DT
average/NN
of/IN
$/$
10/CD
a/DT
barrel/NN
on/IN
an/DT
export/NN
platform/NN
of/IN
1,250,000/CD
barrels/NNS
a/DT
day/NN
./.
CHICAGO/NNP
Sears/NNP
,/,
Roebuck/NNP
&/CC
Co./NNP
is/VBZ
struggling/VBG
as/IN
it/PRP
enters/VBZ
the/DT
critical/JJ
Christmas/NNP
season/NN
./.
Yesterday/NN
,/,
the/DT
retailing/NN
and/CC
financial/JJ
services/NNS
giant/NN
reported/VBD
a/DT
16/CD
%/NN
drop/NN
in/IN
third-quarter/JJ
earnings/NNS
to/TO
$/$
257.5/CD
million/CD
,/,
or/CC
75/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
a/DT
restated/JJ
$/$
305/CD
million/CD
,/,
or/CC
80/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
But/CC
the/DT
news/NN
was/VBD
even/RB
worse/JJR
for/IN
Sears/NNP
's/POS
core/JJ
U.S./NNP
retailing/NN
operation/NN
,/,
the/DT
largest/JJS
in/IN
the/DT
nation/NN
./.
Sears/NNP
said/VBD
its/PRP$
U.S./NNP
stores/NNS
had/VBD
a/DT
loss/NN
of/IN
$/$
6.9/CD
million/CD
,/,
their/PRP$
first/JJ
deficit/NN
for/IN
the/DT
period/NN
in/IN
more/RBR|JJR
than/IN
five/CD
years/NNS
./.
Analysts/NNS
estimated/VBD
that/IN
sales/NNS
at/IN
U.S./NNP
stores/NNS
declined/VBD
in/IN
the/DT
quarter/NN
,/,
too/RB
./.
The/DT
results/NNS
underscore/VBP
Sears/NNP
's/POS
difficulties/NNS
in/IN
implementing/VBG
the/DT
``/``
everyday/JJ
low/JJ
pricing/NN
''/''
strategy/NN
that/IN
it/PRP
adopted/VBD
in/IN
March/NNP
as/IN
part/NN
of/IN
a/DT
broad/JJ
attempt/NN
to/TO
revive/VB
its/PRP$
retailing/NN
business/NN
./.
Under/IN
the/DT
new/JJ
approach/NN
,/,
Sears/NNP
set/VBD
prices/NNS
that/WDT
were/VBD
somewhere/RB
between/IN
its/PRP$
old/JJ
``/``
regular/JJ
''/''
and/CC
``/``
sale/NN
''/''
prices/NNS
./.
The/DT
company/NN
said/VBD
it/PRP
would/MD
resort/VB
far/RB
less/RBR
often/RB
to/TO
slashing/VBG
prices/NNS
to/TO
woo/VB
shoppers/NNS
./.
Sears/NNP
officials/NNS
insist/VBP
they/PRP
do/VBP
n't/RB
intend/VB
to/TO
abandon/VB
the/DT
everyday/JJ
pricing/NN
approach/NN
in/IN
the/DT
face/NN
of/IN
the/DT
poor/JJ
results/NNS
./.
Instead/RB
,/,
a/DT
spokesman/NN
blames/VBZ
the/DT
dismal/JJ
third-quarter/JJ
showing/NN
on/IN
``/``
an/DT
environment/NN
that/WDT
is/VBZ
being/VBG
distorted/VBN
by/IN
a/DT
very/RB
harsh/JJ
climate/NN
for/IN
sales/NNS
of/IN
durable/JJ
goods/NNS
,/,
''/''
which/WDT
account/VBP
for/IN
roughly/RB
two-thirds/NNS
of/IN
Sears/NNP
's/POS
annual/JJ
merchandise/NN
volume/NN
./.
The/DT
new/JJ
pricing/NN
strategy/NN
``/``
is/VBZ
working/VBG
,/,
''/''
the/DT
spokesman/NN
asserted/VBD
./.
He/PRP
added/VBD
that/IN
,/,
after/IN
an/DT
initial/JJ
surge/NN
triggered/VBN
by/IN
an/DT
advertising/NN
blitz/NN
in/IN
March/NNP
,/,
Sears/NNP
expected/VBD
that/IN
the/DT
pricing/NN
program/NN
would/MD
n't/RB
have/VB
any/DT
effect/NN
on/IN
revenue/NN
./.
Sears/NNP
has/VBZ
been/VBN
counting/VBG
on/IN
growth/NN
coming/VBG
from/IN
the/DT
large/JJ
displays/NNS
of/IN
brand-name/JJ
merchandise/NN
it/PRP
is/VBZ
adding/VBG
to/TO
its/PRP$
stores/NNS
over/IN
the/DT
next/JJ
two/CD
years/NNS
in/IN
what/WP
it/PRP
calls/VBZ
``/``
power/NN
formats/NNS
./.
''/''
But/CC
analysts/NNS
say/VBP
Sears/NNP
faces/VBZ
an/DT
especially/RB
daunting/JJ
challenge/NN
on/IN
the/DT
eve/NN
of/IN
the/DT
Christmas/NNP
shopping/NN
season/NN
./.
``/``
I/PRP
believe/VBP
everyday/JJ
pricing/NN
in/IN
the/DT
current/JJ
environment/NN
does/VBZ
n't/RB
work/VB
,/,
''/''
says/VBZ
Walter/NNP
Loeb/NNP
of/IN
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
,/,
pointing/VBG
to/TO
soft/JJ
durable-goods/NNS
sales/NNS
./.
``/``
Sears/NNP
is/VBZ
likely/JJ
to/TO
be/VB
unsuccessful/JJ
if/IN
it/PRP
continues/VBZ
with/IN
its/PRP$
pricing/NN
policy/NN
when/WRB
everyone/NN
else/RB
is/VBZ
offering/VBG
unusual/JJ
values/NNS
./.
''/''
In/IN
what/WP
amounts/NNS
to/TO
an/DT
admission/NN
that/IN
the/DT
transition/NN
has/VBZ
n't/RB
gone/VBN
as/RB
smoothly/RB
as/IN
Sears/NNS
had/VBD
hoped/VBN
,/,
the/DT
giant/JJ
retailer/NN
is/VBZ
now/RB
trying/VBG
new/JJ
ways/NNS
to/TO
drum/VB
up/RP
business/NN
without/IN
appearing/VBG
to/TO
abandon/VB
its/PRP$
seven-month-old/JJ
strategy/NN
./.
The/DT
company/NN
is/VBZ
highlighting/VBG
more/JJR
special/JJ
deals/NNS
in/IN
its/PRP$
advertising/NN
and/CC
stores/NNS
,/,
and/CC
it/PRP
's/VBZ
offering/VBG
to/TO
defer/VB
finance/NN
charges/NNS
on/IN
certain/JJ
big-ticket/JJ
items/NNS
./.
Sears/NNP
is/VBZ
also/RB
stepping/VBG
up/RP
its/PRP$
television/NN
ads/NNS
and/CC
changing/VBG
its/PRP$
message/NN
./.
In/IN
a/DT
new/JJ
TV/NN
ad/NN
,/,
for/IN
instance/NN
,/,
a/DT
woman/NN
going/VBG
through/IN
the/DT
Sunday/NNP
newspaper/NN
brands/VBZ
as/IN
hype/NN
claims/NNS
by/IN
other/JJ
stores/NNS
that/IN
they/PRP
are/VBP
offering/VBG
goods/NNS
for/IN
``/``
50/CD
%/NN
,/,
60/CD
%/NN
and/CC
70/CD
%/NN
off/RB
./.
''/''
By/IN
lowering/VBG
prices/NNS
throughout/IN
its/PRP$
stores/NNS
,/,
she/PRP
says/VBZ
,/,
``/``
Sears/NNP
has/VBZ
the/DT
right/JJ
idea/NN
./.
''/''
But/CC
the/DT
ad/NN
also/RB
mentions/VBZ
Sears/NNP
's/POS
sales/NNS
--/:
a/DT
topic/NN
that/IN
the/DT
retailer/NN
has/VBZ
avoided/VBN
since/IN
switching/VBG
to/TO
everyday/JJ
pricing/NN
./.
``/``
When/WRB
Sears/NNP
has/VBZ
a/DT
sale/NN
at/IN
a/DT
special/JJ
price/NN
,/,
''/''
the/DT
woman/NN
in/IN
the/DT
ad/NN
declares/VBZ
,/,
``/``
it/PRP
's/VBZ
something/NN
you/PRP
do/VBP
n't/RB
want/VB
to/TO
miss/VB
./.
''/''
Recent/JJ
surveys/NNS
by/IN
Leo/NNP
J./NNP
Shapiro/NNP
&/CC
Associates/NNP
,/,
a/DT
market/NN
research/NN
firm/NN
in/IN
Chicago/NNP
,/,
suggest/VBP
that/IN
Sears/NNP
is/VBZ
having/VBG
a/DT
tough/JJ
time/NN
attracting/VBG
shoppers/NNS
because/IN
it/PRP
has/VBZ
n't/RB
yet/RB
done/VBN
enough/NN
to/TO
improve/VB
service/NN
or/CC
its/PRP$
selection/NN
of/IN
merchandise/NN
./.
The/DT
number/NN
of/IN
people/NNS
who/WP
said/VBD
they/PRP
were/VBD
more/RBR
likely/JJ
to/TO
shop/VB
at/IN
Sears/NNP
fell/VBD
in/IN
September/NNP
to/TO
37/CD
%/NN
from/IN
66/CD
%/NN
in/IN
March/NNP
,/,
when/WRB
Sears/NNP
blanketed/VBD
the/DT
airwaves/NNS
with/IN
ads/NNS
about/IN
its/PRP$
new/JJ
pricing/NN
strategy/NN
./.
Moreover/RB
,/,
the/DT
number/NN
of/IN
people/NNS
who/WP
spontaneously/RB
cited/VBD
lower/JJR
prices/NNS
as/IN
the/DT
reason/NN
for/IN
their/PRP$
interest/NN
in/IN
Sears/NNP
declined/VBD
to/TO
16/CD
%/NN
in/IN
September/NNP
from/IN
33/CD
%/NN
in/IN
March/NNP
./.
Just/RB
5/CD
%/NN
of/IN
the/DT
respondents/NNS
mentioned/VBD
brands/NNS
in/IN
September/NNP
,/,
up/RB
slightly/RB
from/IN
2/CD
%/NN
in/IN
March/NNP
./.
Only/RB
2/CD
%/NN
of/IN
the/DT
people/NNS
in/IN
September/NNP
cited/VBD
Sears/NNP
's/POS
``/``
friendly/JJ
personnel/NNS
./.
''/''
``/``
The/DT
power/NN
of/IN
price/NN
as/IN
an/DT
appeal/NN
,/,
which/WDT
was/VBD
very/RB
considerable/JJ
in/IN
driving/VBG
traffic/NN
in/IN
March/NNP
and/CC
April/NNP
,/,
has/VBZ
diminished/VBN
,/,
''/''
says/VBZ
George/NNP
Rosenbaum/NNP
,/,
president/NN
of/IN
Shapiro/NNP
&/CC
Associates/NNP
./.
``/``
You/PRP
see/VBP
some/DT
improvement/NN
in/IN
these/DT
other/JJ
areas/NNS
,/,
but/CC
it/PRP
's/VBZ
a/DT
very/RB
small/JJ
and/CC
slow/JJ
process/NN
./.
''/''
For/IN
the/DT
third/JJ
quarter/NN
,/,
Sears/NNP
said/VBD
its/PRP$
total/NN
revenue/NN
rose/VBD
4.8/CD
%/NN
to/TO
$/$
13.18/CD
billion/CD
from/IN
$/$
12.57/CD
billion/CD
a/DT
year/NN
earlier/RBR
./.
Net/JJ
income/NN
at/IN
Sears/NNP
's/POS
merchandise/NN
group/NN
,/,
which/WDT
includes/VBZ
international/JJ
and/CC
credit/NN
card/NN
operations/NNS
,/,
as/RB
well/RB
as/IN
U.S./NNP
stores/NNS
,/,
fell/VBD
25/CD
%/NN
./.
Profit/NN
at/IN
Sears/NNP
's/POS
Allstate/NNP
insurance/NN
unit/NN
fell/VBD
38/CD
%/NN
to/TO
$/$
126.1/CD
million/CD
because/IN
of/IN
Hurricane/NNP
Hugo/NNP
,/,
which/WDT
inflicted/VBD
the/DT
greatest/JJS
single/JJ
storm/NN
damage/NN
loss/NN
in/IN
the/DT
company/NN
's/POS
history/NN
./.
Sears/NNP
said/VBD
claims/NNS
from/IN
the/DT
storm/NN
,/,
as/IN
expected/VBN
,/,
reduced/VBD
its/PRP$
third-quarter/JJ
net/NN
by/IN
$/$
80/CD
million/CD
,/,
or/CC
23/CD
cents/NNS
a/DT
share/NN
./.
Allstate/NNP
is/VBZ
expected/VBN
to/TO
absorb/VB
another/DT
big/JJ
hit/NN
in/IN
the/DT
fourth/JJ
quarter/NN
as/IN
claims/NNS
pour/VBP
in/RB
from/IN
the/DT
San/NNP
Francisco/NNP
earthquake/NN
./.
But/CC
a/DT
spokesman/NN
said/VBD
the/DT
quake/NN
wo/MD
n't/RB
have/VB
as/RB
big/JJ
a/DT
financial/JJ
impact/NN
on/IN
Allstate/NNP
as/IN
Hurricane/NNP
Hugo/NNP
did/VBD
./.
Net/JJ
income/NN
at/IN
Sears/NNP
's/POS
Dean/NNP
Witter/NNP
Financials/NNP
Services/NNP
group/NN
,/,
meanwhile/RB
,/,
rose/VBD
nearly/RB
32/CD
%/NN
to/TO
$/$
35.7/CD
million/CD
,/,
reflecting/VBG
improvements/NNS
in/IN
its/PRP$
basic/JJ
stock/NN
brokerage/NN
and/CC
Discover/NNP
credit/NN
card/NN
businesses/NNS
./.
Profit/NN
at/IN
Sears/NNP
's/POS
Coldwell/NNP
Banker/NNP
Real/NNP
Estate/NNP
Group/NNP
nearly/RB
quadrupled/VBD
to/TO
$/$
81.2/CD
million/CD
because/IN
of/IN
gains/NNS
on/IN
sales/NNS
of/IN
property/NN
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
Sears/NNP
shares/NNS
closed/VBD
at/IN
$/$
40.50/CD
,/,
up/RB
87.5/CD
cents/NNS
./.
Oil/NN
imports/NNS
to/TO
Japan/NNP
rose/VBD
12/CD
%/NN
in/IN
September/NNP
from/IN
year-earlier/JJ
levels/NNS
,/,
according/VBG
to/TO
statistics/NNS
released/VBN
by/IN
the/DT
government/NN
's/POS
Ministry/NNP
of/IN
International/NNP
Trade/NNP
and/CC
Industry/NNP
./.
The/DT
imports/NNS
,/,
totaling/VBG
98.5/CD
million/CD
barrels/NNS
,/,
were/VBD
11/CD
%/NN
lower/JJR
than/IN
August/NNP
levels/NNS
./.
The/DT
year-on-year/JJ
rise/NN
was/VBD
partly/RB
because/IN
of/IN
higher/JJR
demand/NN
for/IN
petroleum/NN
products/NNS
,/,
and/CC
partly/RB
because/IN
of/IN
tax/NN
changes/NNS
in/IN
1988/CD
that/WDT
left/VBD
oil/NN
companies/NNS
with/IN
high/JJ
inventories/NNS
in/IN
the/DT
late-summer\/early-FALL/JJ
PERIOD/NN
./.
Imports/NNS
of/IN
crude/NN
from/IN
the/DT
Middle/NNP
East/NNP
grew/VBD
17/CD
%/NN
from/IN
year-earlier/JJ
levels/NNS
,/,
and/CC
Southeast/JJ
Asian/JJ
crude/NN
imports/NNS
grew/VBD
43/CD
%/NN
./.
While/IN
Mideast/JJ
crude/NN
imports/NNS
were/VBD
higher/JJR
compared/VBN
with/IN
year-earlier/JJ
levels/NNS
,/,
they/PRP
fell/VBD
18/CD
%/NN
compared/VBN
with/IN
August/NNP
imports/NNS
./.
Southeast/JJ
Asian/JJ
crude/NN
imports/NNS
,/,
however/RB
,/,
were/VBD
3.6/CD
%/NN
higher/JJR
than/IN
August/NNP
./.
This/DT
is/VBZ
in/IN
response/NN
to/TO
George/NNP
Melloan/NNP
's/POS
Business/NNP
World/NNP
column/NN
``/``
The/DT
Housing/NN
Market/NN
Is/VBZ
a/DT
Bigger/JJR
Mess/NN
Than/IN
You/PRP
Think/VBP
''/''
(/(
op-ed/JJ
page/NN
,/,
Sept./NNP
26/CD
In/IN
Houston/NNP
,/,
we/PRP
have/VBP
seen/VBN
how/WRB
bad/JJ
the/DT
housing/NN
problem/NN
can/MD
become/VB
./.
Unused/JJ
houses/NNS
deteriorate/VBP
rapidly/RB
,/,
affecting/VBG
the/DT
value/NN
of/IN
nearby/JJ
homes/NNS
;/:
in/IN
a/DT
domino/NN
effect/NN
,/,
the/DT
entire/JJ
neighborhood/NN
can/MD
fall/VB
victim/NN
./.
At/IN
this/DT
stage/NN
some/DT
people/NNS
just/RB
``/``
walk/VBP
away/RB
''/''
from/IN
homes/NNS
where/WRB
the/DT
mortgage/NN
exceeds/VBZ
current/JJ
market/NN
value/NN
./.
But/CC
most/JJS
of/IN
them/PRP
could/MD
have/VB
afforded/VBN
to/TO
keep/VB
up/RP
their/PRP$
payments/NNS
--/:
they/PRP
chose/VBD
not/RB
to/TO
do/VB
so/RB
./.
The/DT
problem/NN
is/VBZ
so/RB
vast/JJ
that/IN
we/PRP
need/VBP
to/TO
try/VB
innovative/JJ
solutions/NNS
--/:
in/IN
small-scale/JJ
experiments/NNS
./.
Here/RB
are/VBP
some/DT
ideas/NNS
:/:
1/LS
homes/NNS
could/MD
be/VB
sold/VBN
by/IN
the/DT
FHA/NNP
for/IN
no/DT
down/JJ
payment/NN
the/DT
biggest/JJS
obstacle/NN
to/TO
young/JJ
buyers/NNS
personal/JJ
liability/NN
for/IN
the/DT
mortgage/NN
choice/NN
2/LS
long-term/JJ
occupancy/NN
by/IN
forgiving/VBG
one/CD
month/NN
's/POS
payment/NN
the/DT
tail/JJ
end/NN
of/IN
the/DT
mortgage/NN
every/DT
six/CD
months/NNS
paid/VBN
;/:
or/CC
perhaps/RB
have/VB
the/DT
down/JJ
payment/NN
deferred/VBN
to/TO
the/DT
end/NN
of/IN
the/DT
mortgage/NN
balloon/NN
a/DT
monthly/JJ
pro-rata/JJ
basis/NN
as/RB
long/RB
as/IN
the/DT
owner/NN
remains/VBZ
the/DT
occupant/NN
./.
3/LS
rental/JJ
agreements/NNS
with/IN
exclusive/JJ
purchase/NN
options/NNS
for/IN
the/DT
renter/NN
./.
An/DT
occupant/NN
will/MD
,/,
in/IN
most/RB
every/DT
case/NN
,/,
be/VB
better/JJR
for/IN
the/DT
home/NN
and/CC
neighborhood/NN
than/IN
a/DT
vacant/JJ
house/NN
./.
In/IN
this/DT
way/NN
,/,
the/DT
house/NN
is/VBZ
not/RB
dumped/VBN
on/IN
to/TO
a/DT
glutted/JJ
market/NN
./.
John/NNP
F./NNP
Merrill/NNP
Houston/NNP
The/DT
Federal/NNP
Housing/NNP
Administration/NNP
,/,
Veterans/NNP
Administration/NNP
and/CC
the/DT
Department/NNP
of/IN
Housing/NNP
and/CC
Urban/NNP
Development/NNP
further/RB
aggravate/VBP
the/DT
problem/NN
of/IN
affordable/JJ
housing/NN
stock/NN
by/IN
``/``
buying/VBG
in/IN
''/''
to/TO
their/PRP$
foreclosed/VBN
properties/NNS
which/WDT
there/EX
are/VBP
,/,
alas/UH
,/,
many/JJ
an/DT
inflated/JJ
``/``
balance/NN
due/JJ
''/''
--/:
say/VB
$/$
80,000/CD
on/IN
a/DT
house/NN
worth/JJ
$/$
55,000/CD
--/:
instead/RB
of/IN
allowing/VBG
a/DT
free/JJ
market/NN
to/TO
price/VB
the/DT
house/NN
for/IN
what/WP
it/PRP
's/VBZ
really/RB
worth/JJ
./.
Worse/RBR|JJR
,/,
the/DT
properties/NNS
then/RB
sit/VBP
around/RP
deteriorating/VBG
for/IN
maybe/RB
a/DT
year/NN
or/CC
so/RB
,/,
but/CC
are/VBP
resold/VBN
eventually/RB
(/(
because/IN
of/IN
the/DT
attractiveness/NN
of/IN
the/DT
low/JJ
down/JJ
payment/NN
,/,
etc/FW
./.
a/DT
marginal/JJ
buyer/NN
who/WP
ca/MD
n't/RB
afford/VB
both/DT
the/DT
mortgage/NN
and/CC
needed/VBN|JJ
repairs/NNS
;/:
and/CC
having/VBG
little/JJ
vested/JJ
interest/NN
that/DT
buyer/NN
will/MD
walk/VB
away/RB
and/CC
the/DT
vicious/JJ
cycle/NN
repeats/VBZ
itself/PRP
all/RB
over/RB
again/RB
./.
Paul/NNP
Padget/NNP
Cincinnati/NNP
Italy/NNP
's/POS
unemployment/NN
rate/NN
rose/VBD
to/TO
12/CD
%/NN
of/IN
the/DT
labor/NN
force/NN
in/IN
July/NNP
from/IN
11.9/CD
%/NN
in/IN
April/NNP
,/,
and/CC
was/VBD
up/RB
from/IN
11.7/CD
%/NN
a/DT
year/NN
earlier/RBR
,/,
according/VBG
to/TO
quarterly/JJ
figures/NNS
from/IN
the/DT
state/NN
statistical/JJ
institute/NN
./.
Istat/NNP
said/VBD
a/DT
national/JJ
survey/NN
during/IN
the/DT
first/JJ
week/NN
of/IN
July/NNP
showed/VBD
the/DT
number/NN
of/IN
job/NN
seekers/NNS
was/VBD
2,888,000/CD
up/RB
from/IN
2,822,000/CD
in/IN
April/NNP
,/,
and/CC
from/IN
2,853,000/CD
a/DT
year/NN
ago/RB
./.
The/DT
unemployment/NN
rate/NN
was/VBD
by/IN
far/RB
the/DT
highest/JJS
in/IN
the/DT
southern/JJ
,/,
so-called/JJ
Mezzogiorno/NNP
region/NN
./.
The/DT
southern/JJ
unemployment/NN
rate/NN
rose/VBD
to/TO
21.3/CD
%/NN
in/IN
July/NNP
from/IN
21.2/CD
%/NN
in/IN
April/NNP
and/CC
from/IN
20.6/CD
%/NN
a/DT
year/NN
earlier/RBR
./.
Istat/NNP
said/VBD
369,000/CD
more/JJR
people/NNS
were/VBD
employed/VBN
in/IN
July/NNP
than/IN
in/IN
April/NNP
./.
Xerox/NNP
Corp./NNP
's/POS
third-quarter/JJ
net/JJ
income/NN
grew/VBD
6.2/CD
%/NN
on/IN
7.3/CD
%/NN
higher/JJR
revenue/NN
,/,
earning/VBG
mixed/JJ
reviews/NNS
from/IN
Wall/NNP
Street/NNP
analysts/NNS
./.
Quarter/NN
net/NN
for/IN
the/DT
business-machines/NNS
and/CC
financial-services/NNS
company/NN
rose/VBD
to/TO
$/$
155/CD
million/CD
,/,
or/CC
$/$
1.41/CD
a/DT
share/NN
,/,
from/IN
$/$
146/CD
million/CD
,/,
or/CC
$/$
1.37/CD
a/DT
share/NN
,/,
in/IN
the/DT
year-earlier/JJ
period/NN
./.
Revenue/NN
rose/VBD
to/TO
$/$
4.45/CD
billion/CD
from/IN
$/$
4.15/CD
billion/CD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Xerox/NNP
closed/VBD
at/IN
$/$
62.75/CD
a/DT
share/NN
,/,
up/RB
$/$
1/CD
./.
Sales/NNS
growth/NN
and/CC
profit/NN
in/IN
business/NN
products/NNS
and/CC
systems/NNS
--/:
Xerox/NNP
's/POS
main/JJ
business/NN
--/:
were/VBD
``/``
disappointing/JJ
,/,
''/''
said/VBD
B./NNP
Alex/NNP
Henderson/NNP
,/,
who/WP
follows/VBZ
the/DT
company/NN
for/IN
Prudential-Bache/NNP
Securities/NNP
Inc/NNP
./.
Sales/NNS
of/IN
Xerox/NNP
copiers/NNS
and/CC
other/JJ
office/NN
products/NNS
grew/VBD
1.6/CD
%/NN
;/:
``/``
we/PRP
expected/VBD
growth/NN
of/IN
6/CD
%/NN
to/TO
7/CD
%/NN
,/,
''/''
Mr./NNP
Henderson/NNP
said/VBD
./.
Operating-profit/NN
margins/NNS
slipped/VBD
almost/RB
18/CD
%/NN
,/,
to/TO
4.3/CD
%/NN
of/IN
sales/NNS
,/,
the/DT
analyst/NN
noted/VBD
./.
Still/RB
,/,
with/IN
competitors/NNS
such/JJ
as/IN
Eastman/NNP
Kodak/NNP
Co./NNP
faltering/VBG
in/IN
copier/NN
sales/NNS
,/,
Xerox/NNP
's/POS
sales/NNS
increases/VBZ
``/``
were/VBD
encouraging/JJ
,/,
''/''
says/VBZ
Eugene/NNP
Glazer/NNP
of/IN
Dean/NNP
Witter/NNP
Reynolds/NNP
Inc/NNP
./.
``/``
They/PRP
are/VBP
holding/VBG
their/PRP$
own/JJ
in/IN
a/DT
weak/JJ
market/NN
,/,
and/CC
the/DT
restructuring/NN
is/VBZ
working/VBG
,/,
''/''
he/PRP
says/VBZ
./.
David/NNP
T./NNP
Kearns/NNP
,/,
Xerox/NNP
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
cited/VBD
the/DT
restructuring/NN
and/CC
``/``
strong/JJ
''/''
cost/NN
controls/NNS
for/IN
the/DT
13/CD
%/NN
growth/NN
in/IN
profit/NN
from/IN
business/NN
products/NNS
and/CC
systems/NNS
operations/NNS
./.
Mr./NNP
Glazer/NNP
expects/VBZ
Xerox/NNP
to/TO
experience/VB
tough/JJ
sledding/NN
,/,
though/RB
,/,
in/IN
financial/JJ
services/NNS
because/IN
of/IN
rate/NN
pressures/NNS
and/CC
uncertainty/NN
surrounding/VBG
tax/NN
treatment/NN
of/IN
capital/NN
gains/NNS
./.
In/IN
the/DT
quarter/NN
,/,
the/DT
Crum/NNP
&/CC
Forster/NNP
insurance/NN
unit/NN
reported/VBD
$/$
200/CD
million/CD
before/IN
tax/NN
of/IN
capital/NN
gains/NNS
from/IN
property/NN
and/CC
casualty/NN
operations/NNS
./.
The/DT
subsidiary/NN
also/RB
increased/VBD
reserves/NNS
by/IN
$/$
140/CD
million/CD
,/,
however/RB
,/,
and/CC
set/VBD
aside/RB
an/DT
additional/JJ
$/$
25/CD
million/CD
for/IN
claims/NNS
connected/VBN
with/IN
Hurricane/NNP
Hugo/NNP
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Xerox/NNP
earned/VBD
$/$
492/CD
million/CD
,/,
or/CC
$/$
4.55/CD
a/DT
share/NN
,/,
up/RB
5.8/CD
%/NN
from/IN
$/$
465/CD
million/CD
,/,
or/CC
$/$
4.32/CD
a/DT
share/NN
./.
Revenue/NN
rose/VBD
7.6/CD
%/NN
to/TO
$/$
12.97/CD
billion/CD
from/IN
$/$
12.05/CD
billion/CD
./.
New/JJ
orders/NNS
for/IN
durable/JJ
goods/NNS
fell/VBD
back/RB
slightly/RB
in/IN
September/NNP
after/IN
shooting/VBG
up/RB
the/DT
month/NN
before/RB
,/,
reflecting/VBG
weakening/VBG
auto/NN
demand/NN
after/IN
a/DT
spurt/NN
of/IN
orders/NNS
for/IN
new/JJ
1990/CD
models/NNS
,/,
the/DT
Commerce/NNP
Department/NNP
reported/VBD
./.
Orders/NNS
for/IN
military/JJ
equipment/NN
,/,
household/NN
appliances/NNS
,/,
machinery/NN
and/CC
other/JJ
goods/NNS
expected/VBN
to/TO
last/VB
at/IN
least/JJS
three/CD
years/NNS
dipped/VBD
0.1/CD
%/NN
last/JJ
month/NN
,/,
to/TO
$/$
126.68/CD
billion/CD
,/,
after/IN
leaping/VBG
3.9/CD
%/NN
in/IN
August/NNP
,/,
the/DT
department/NN
said/VBD
./.
Most/JJS
analysts/NNS
had/VBD
expected/VBN
a/DT
sharper/JJR
decline/NN
after/IN
the/DT
steep/JJ
rise/NN
in/IN
August/NNP
./.
Moreover/RB
,/,
a/DT
recent/JJ
government/NN
report/NN
showing/VBG
widespread/JJ
layoffs/NNS
in/IN
manufacturing/NN
had/VBD
contributed/VBN
to/TO
perceptions/NNS
that/IN
the/DT
manufacturing/NN
sector/NN
of/IN
the/DT
economy/NN
had/VBD
slowed/VBN
to/TO
a/DT
crawl/NN
./.
But/CC
many/JJ
economists/NNS
pointed/VBD
to/TO
a/DT
1.8/CD
%/NN
September/NNP
rise/NN
in/IN
orders/NNS
outside/IN
the/DT
volatile/JJ
transportation/NN
category/NN
./.
That/DT
``/``
suggests/VBZ
the/DT
manufacturing/NN
sector/NN
is/VBZ
not/RB
falling/VBG
apart/RB
,/,
''/''
said/VBD
Sally/NNP
Kleinman/NNP
,/,
an/DT
economist/NN
at/IN
Manufacturers/NNP
Hanover/NNP
Securities/NNP
Corp./NNP
in/IN
New/NNP
York/NNP
./.
She/PRP
added/VBD
,/,
however/RB
:/:
``/``
It/PRP
is/VBZ
not/RB
robust/JJ
by/IN
any/DT
means/NNS
./.
''/''
While/IN
a/DT
decline/NN
in/IN
orders/NNS
for/IN
cars/NNS
and/CC
civilian/JJ
airplanes/NNS
pulled/VBD
down/RP
the/DT
orders/NNS
total/NN
,/,
an/DT
enormous/JJ
jump/NN
in/IN
orders/NNS
for/IN
heavy/NN
military/JJ
equipment/NN
propped/VBD
it/PRP
up/RP
./.
Orders/NNS
for/IN
capital/NN
defense/NN
goods/NNS
skyrocketed/VBD
56/CD
%/NN
,/,
and/CC
a/DT
government/NN
analyst/NN
said/VBD
nearly/RB
all/DT
areas/NNS
saw/VBD
increases/NNS
,/,
including/VBG
airplanes/NNS
,/,
missiles/NNS
,/,
ships/NNS
,/,
tanks/NNS
and/CC
communications/NN
equipment/NN
./.
Orders/NNS
for/IN
military/JJ
goods/NNS
usually/RB
catapult/VBP
in/IN
September/NNP
,/,
government/NN
officials/NNS
say/VBP
,/,
as/IN
the/DT
Pentagon/NNP
scrambles/NNS
to/TO
spend/VB
its/PRP$
money/NN
before/IN
the/DT
new/JJ
fiscal/JJ
year/NN
begins/VBZ
Oct./NNP
1/CD
./.
While/IN
all/PDT
the/DT
numbers/NNS
in/IN
the/DT
durable/JJ
goods/NNS
report/NN
were/VBD
adjusted/VBN
for/IN
seasonal/JJ
fluctuations/NNS
,/,
a/DT
Commerce/NNP
Department/NNP
analyst/NN
said/VBD
that/IN
the/DT
adjustment/NN
probably/RB
did/VBD
n't/RB
factor/VB
out/IN
all/DT
of/IN
the/DT
wide-ranging/JJ
surge/NN
in/IN
defense/NN
orders/NNS
./.
Without/IN
the/DT
increase/NN
in/IN
defense/NN
bookings/NNS
,/,
September/NNP
orders/NNS
would/MD
have/VB
plummeted/VBN
3.9/CD
%/NN
./.
Analysts/NNS
were/VBD
most/RBS
unsettled/JJ
by/IN
evidence/NN
the/DT
backlog/NN
of/IN
orders/NNS
at/IN
factories/NNS
is/VBZ
slipping/VBG
./.
Unfilled/JJ
orders/NNS
for/IN
durable/JJ
goods/NNS
rose/VBD
0.4/CD
%/NN
in/IN
September/NNP
,/,
to/TO
$/$
476.14/CD
billion/CD
,/,
after/IN
declining/VBG
for/IN
the/DT
first/JJ
time/NN
in/IN
2/CD
1\/2/CD
years/NNS
in/IN
August/NNP
./.
In/IN
July/NNP
unfilled/JJ
orders/NNS
grew/VBD
1/CD
%/NN
./.
But/CC
analysts/NNS
noted/VBD
that/IN
excluding/VBG
transportation/NN
-/:
where/WRB
what/WP
they/PRP
believe/VBP
was/VBD
a/DT
temporary/JJ
surge/NN
in/IN
auto/NN
demand/NN
pushed/VBD
up/RP
the/DT
figures/NNS
-/:
order/NN
backlogs/NNS
have/VBP
declined/VBN
for/IN
three/CD
months/NNS
in/IN
a/DT
row/NN
./.
``/``
It/PRP
means/VBZ
we/PRP
're/VBP
eating/VBG
into/IN
the/DT
bread/NN
that/WDT
keeps/VBZ
us/PRP
going/VBG
./.
That/DT
is/VBZ
a/DT
little/JJ
disturbing/JJ
,/,
''/''
Ms./NNP
Kleinman/NNP
said/VBD
./.
``/``
It/PRP
also/RB
means/VBZ
if/IN
you/PRP
have/VBP
a/DT
real/JJ
drop-off/NN
in/IN
orders/NNS
,/,
production/NN
will/MD
likely/RB
fall/VB
off/RP
very/RB
quickly/RB
because/IN
there/EX
is/VBZ
less/JJR
to/TO
keep/VB
things/NNS
going/VBG
./.
''/''
Capital/NN
goods/NNS
orders/NNS
outside/RB
of/IN
the/DT
defense/NN
sector/NN
tumbled/VBD
for/IN
the/DT
second/JJ
month/NN
in/IN
a/DT
row/NN
,/,
posting/VBG
a/DT
5.6/CD
%/NN
drop/NN
after/IN
a/DT
10.3/CD
%/NN
decline/NN
./.
Such/JJ
steep/JJ
drops/NNS
in/IN
a/DT
category/NN
seen/VBN
as/IN
a/DT
barometer/NN
of/IN
business/NN
investment/NN
would/MD
customarily/RB
be/VB
grave/JJ
news/NN
for/IN
the/DT
economy/NN
./.
But/CC
a/DT
Commerce/NNP
Department/NNP
analyst/NN
said/VBD
that/IN
in/IN
both/DT
months/NNS
orders/NNS
would/MD
have/VB
risen/VBN
had/VBD
it/PRP
not/RB
been/VBN
for/IN
a/DT
drop/NN
in/IN
civilian/JJ
aircraft/NN
bookings/NNS
,/,
a/DT
category/NN
that/WDT
is/VBZ
showing/VBG
declines/NNS
only/RB
after/IN
a/DT
huge/JJ
surge/NN
earlier/RBR
this/DT
year/NN
./.
Still/RB
,/,
Milton/NNP
Hudson/NNP
,/,
senior/JJ
economic/JJ
adviser/NN
at/IN
Morgan/NNP
Guaranty/NNP
Trust/NNP
Co./NNP
in/IN
New/NNP
York/NNP
,/,
said/VBD
:/:
``/``
If/IN
you/PRP
look/VBP
back/RB
a/DT
half-year/NN
or/CC
so/RB
the/DT
evidence/NN
was/VBD
pretty/RB
good/JJ
of/IN
affirmative/JJ
strength/NN
in/IN
the/DT
capital-goods/NNS
sector/NN
./.
Now/RB
at/IN
least/JJS
there/EX
are/VBP
question/NN
marks/NNS
about/IN
that/DT
,/,
and/CC
without/IN
any/DT
question/NN
the/DT
pace/NN
of/IN
growth/NN
has/VBZ
slowed/VBN
./.
''/''
Norfolk/NNP
Southern/NNP
Corp./NNP
directors/NNS
authorized/VBD
the/DT
railroad/NN
company/NN
to/TO
buy/VB
back/RP
as/RB
many/JJ
as/IN
45/CD
million/CD
of/IN
its/PRP$
shares/NNS
,/,
which/WDT
would/MD
have/VB
a/DT
current/JJ
value/NN
of/IN
more/JJR
than/IN
$/$
1.7/CD
billion/CD
./.
The/DT
buy-back/NN
,/,
coupled/VBN
with/IN
a/DT
nearly/RB
completed/VBN
earlier/JJR
purchase/NN
of/IN
20/CD
million/CD
shares/NNS
,/,
would/MD
reduce/VB
shares/NNS
outstanding/JJ
by/IN
more/JJR
than/IN
26/CD
%/NN
./.
The/DT
Norfolk/NNP
,/,
Va./NNP
,/,
company/NN
has/VBZ
172.2/CD
million/CD
shares/NNS
outstanding/JJ
./.
In/IN
a/DT
statement/NN
,/,
Arnold/NNP
B./NNP
McKinnon/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
noted/VBD
that/IN
the/DT
new/JJ
repurchase/JJ
program/NN
``/``
should/MD
serve/VB
to/TO
enhance/VB
shareholder/NN
value/NN
./.
''/''
A/DT
spokeswoman/NN
said/VBD
the/DT
company/NN
will/MD
finance/VB
the/DT
buy-back/NN
with/IN
cash/NN
on/IN
hand/NN
,/,
borrowing/NN
and/CC
``/``
cash/NN
Norfolk/NNP
expects/VBZ
to/TO
generate/VB
./.
''/''
Analysts/NNS
said/VBD
they/PRP
expected/VBD
the/DT
action/NN
,/,
and/CC
investors/NNS
applauded/VBD
the/DT
move/NN
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Norfolk/NNP
Southern/NNP
shares/NNS
closed/VBD
at/IN
$/$
37.875/CD
,/,
up/RB
$/$
1.125/CD
./.
Still/RB
,/,
analysts/NNS
do/VBP
n't/RB
expect/VB
the/DT
buy-back/NN
to/TO
significantly/RB
affect/VB
per-share/JJ
earnings/NNS
in/IN
the/DT
short/JJ
term/NN
./.
``/``
The/DT
impact/NN
wo/MD
n't/RB
be/VB
that/RB
great/JJ
,/,
''/''
said/VBD
Graeme/NNP
Lidgerwood/NNP
of/IN
First/NNP
Boston/NNP
Corp/NNP
./.
That/DT
is/VBZ
in/IN
part/NN
because/IN
of/IN
the/DT
effect/NN
of/IN
having/VBG
to/TO
average/VB
the/DT
number/NN
of/IN
shares/NNS
outstanding/JJ
,/,
she/PRP
said/VBD
./.
In/IN
addition/NN
,/,
Mrs./NNP
Lidgerwood/NNP
said/VBD
,/,
Norfolk/NNP
is/VBZ
likely/JJ
to/TO
draw/VB
down/RP
its/PRP$
cash/NN
initially/RB
to/TO
finance/VB
the/DT
purchases/NNS
and/CC
thus/RB
forfeit/VB
some/DT
interest/NN
income/NN
./.
Longer/JJR
term/NN
,/,
however/RB
,/,
the/DT
buy-back/NN
is/VBZ
expected/VBN
to/TO
increase/VB
earnings/NNS
,/,
especially/RB
after/IN
1990/CD
,/,
Mrs./NNP
Lidgerwood/NNP
said/VBD
./.
Moreover/RB
,/,
the/DT
extensive/JJ
program/NN
in/IN
effect/NN
establishes/VBZ
a/DT
floor/NN
for/IN
the/DT
stock/NN
price/NN
,/,
said/VBD
Joel/NNP
Price/NNP
,/,
analyst/NN
for/IN
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
./.
The/DT
buy-back/NN
``/``
is/VBZ
really/RB
a/DT
comfort/NN
to/TO
those/DT
who/WP
want/VBP
to/TO
buy/VB
the/DT
stock/NN
that/WDT
there/EX
is/VBZ
a/DT
price/NN
floor/NN
,/,
''/''
he/PRP
said/VBD
./.
``/``
At/IN
a/DT
certain/JJ
price/NN
,/,
if/IN
the/DT
management/NN
thinks/VBZ
{/(
the/DT
stock/NN
they/PRP
can/MD
go/VB
in/RB
and/CC
buy/VB
it/PRP
./.
''/''
Under/IN
the/DT
program/NN
,/,
Norfolk/NNP
plans/VBZ
to/TO
acquire/VB
shares/NNS
in/IN
the/DT
open/JJ
market/NN
./.
Under/IN
the/DT
earlier/JJR
plan/NN
,/,
Norfolk/NNP
was/VBD
authorized/VBN
in/IN
1987/CD
to/TO
buy/VB
up/IN
to/TO
20/CD
million/CD
shares/NNS
./.
It/PRP
has/VBZ
purchased/VBN
about/RB
19/CD
million/CD
of/IN
them/PRP
./.
John/NNP
B./NNP
Curcio/NNP
,/,
55/CD
years/NNS
old/JJ
,/,
resigned/VBD
as/IN
chairman/NN
of/IN
this/DT
diesel/JJ
truck/NN
manufacturer/NN
,/,
effective/JJ
upon/IN
appointment/NN
of/IN
a/DT
successor/NN
./.
Last/JJ
month/NN
,/,
Mr./NNP
Curcio/NNP
was/VBD
succeeded/VBN
by/IN
Ralph/NNP
E./NNP
Reins/NNP
as/IN
chief/JJ
executive/JJ
officer/NN
following/VBG
several/JJ
quarters/NNS
of/IN
lackluster/JJ
or/CC
declining/VBG
performance/NN
./.
Falcon/NNP
Holding/NNP
Group/NNP
Inc./NNP
said/VBD
it/PRP
agreed/VBD
to/TO
acquire/VB
about/RB
54,000/CD
subscribers/NNS
from/IN
First/NNP
Carolina/NNP
Cable/NNP
TV/NN
Limited/NNP
Partnership/NNP
for/IN
about/RB
$/$
100/CD
million/CD
,/,
or/CC
roughly/RB
$/$
2,000/CD
a/DT
subscriber/NN
./.
The/DT
subscribers/NNS
are/VBP
in/IN
52/CD
different/JJ
communities/NNS
in/IN
Georgia/NNP
,/,
Alabama/NNP
and/CC
Mississippi/NNP
./.
Completion/NN
of/IN
the/DT
sale/NN
is/VBZ
expected/VBN
early/RB
next/JJ
year/NN
,/,
Falcon/NNP
said/VBD
./.
Currently/NNP
,/,
Falcon/NNP
has/VBZ
about/RB
750,000/CD
cable-television/NN
subscribers/NNS
around/IN
the/DT
nation/NN
;/:
the/DT
company/NN
's/POS
cable-television/NN
unit/NN
reported/VBD
1988/CD
revenue/NN
of/IN
about/RB
$/$
100/CD
million/CD
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
American/NNP
Stock/NNP
Exchange/NNP
,/,
Falcon/NNP
closed/VBD
at/IN
$/$
20/CD
,/,
unchanged/JJ
./.
Richard/NNP
W./NNP
Lock/NNP
,/,
retired/JJ
vice/NN
president/NN
and/CC
treasurer/NN
of/IN
Owens-Illinois/NNP
Inc./NNP
,/,
was/VBD
named/VBN
a/DT
director/NN
of/IN
this/DT
transportation/NN
industry/NN
supplier/NN
,/,
increasing/VBG
its/PRP$
board/NN
to/TO
six/CD
members/NNS
./.
USX/NNP
Corp./NNP
said/VBD
it/PRP
delayed/VBD
the/DT
proposed/JJ
initial/JJ
public/JJ
offering/NN
of/IN
common/JJ
stock/NN
of/IN
RMI/NNP
Titanium/NNP
Co./NNP
because/IN
of/IN
market/NN
conditions/NNS
./.
RMI/NNP
Titanium/NNP
is/VBZ
owned/VBN
jointly/RB
by/IN
USX/NNP
and/CC
Quantum/NNP
Chemical/NNP
Corp/NNP
./.
USX/NNP
,/,
which/WDT
had/VBD
n't/RB
set/VBN
a/DT
date/NN
for/IN
the/DT
offering/NN
,/,
did/VBD
n't/RB
disclose/VB
any/DT
timetable/NN
for/IN
the/DT
offering/NN
./.
Your/PRP$
Oct./NNP
2/CD
editorial/NN
``/``
Reding/NN
,/,
Wrighting/NN
&/CC
Erithmatic/NN
''/''
on/IN
the/DT
recent/JJ
``/``
education/NN
summit/NN
''/''
was/VBD
like/IN
most/JJS
pieces/NNS
on/IN
the/DT
subject/NN
of/IN
education/NN
:/:
It/PRP
had/VBD
little/JJ
to/TO
say/VB
./.
Oddly/RB
,/,
though/RB
,/,
on/IN
the/DT
very/RB
same/JJ
page/NN
you/PRP
printed/VBD
a/DT
comment/NN
that/WDT
addresses/VBZ
one/CD
of/IN
the/DT
most/RBS
serious/JJ
shortcomings/NNS
of/IN
the/DT
American/JJ
education/NN
system/NN
./.
Unfortunately/RB
,/,
the/DT
comment/NN
was/VBD
buried/VBN
in/IN
another/DT
article/NN
,/,
so/IN
it/PRP
could/MD
not/RB
stand/VB
out/RP
in/IN
an/DT
education/NN
context/NN
./.
In/IN
the/DT
Manager/NNP
's/POS
Journal/NNP
,/,
Atsushi/NNP
Kageyama/NNP
,/,
in/IN
commenting/VBG
on/IN
many/JJ
differences/NNS
between/IN
American/JJ
and/CC
Japanese/JJ
culture/NN
,/,
said/VBD
,/,
``/``
Japanese/JJ
children/NNS
are/VBP
raised/VBN
in/IN
a/DT
way/NN
many/JJ
Americans/NNPS
would/MD
find/VB
severe/JJ
./.
After/IN
a/DT
wonderfully/RB
frivolous/JJ
early/JJ
childhood/NN
,/,
they/PRP
are/VBP
exposed/VBN
to/TO
rigid/JJ
discipline/NN
as/RB
soon/RB
as/IN
they/PRP
enter/VBP
school/NN
./.
''/''
What/WP
far/RB
too/RB
many/JJ
people/NNS
concerned/JJ
about/IN
education/NN
either/CC
fail/VB
to/TO
understand/VB
or/CC
choose/VB
to/TO
ignore/VB
is/VBZ
that/IN
American/JJ
children/NNS
,/,
on/IN
the/DT
whole/NN
,/,
are/VBP
among/IN
the/DT
most/RBS
undisciplined/JJ
in/IN
the/DT
world/NN
,/,
making/VBG
any/DT
attempt/NN
at/IN
improvements/NNS
in/IN
the/DT
mode/NN
of/IN
education/NN
potentially/RB
unsuccessful/JJ
./.
Unless/IN
parents/NNS
and/CC
educators/NNS
alike/RB
start/VBP
to/TO
develop/VB
more/JJR
discipline/NN
in/IN
children/NNS
,/,
all/PDT
the/DT
worthy/JJ
concern/NN
,/,
discussions/NNS
and/CC
actions/NNS
will/MD
not/RB
solve/VB
the/DT
problem/NN
./.
Allen/NNP
B./NNP
Richards/NNP
Peterborough/NNP
,/,
N.H/NNP
./.
Retired/NNP
Adm./NNP
William/NNP
J./NNP
Crowe/NNP
,/,
former/JJ
chairman/NN
of/IN
the/DT
Joint/NNP
Chiefs/NNP
of/IN
Staff/NNP
,/,
and/CC
Robert/NNP
P./NNP
Luciano/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
Schering-Plough/NNP
Corp./NNP
,/,
were/VBD
elected/VBN
directors/NNS
of/IN
this/DT
securities/NNS
firm/NN
./.
The/DT
board/NN
expanded/VBD
to/TO
17/CD
seats/NNS
./.
Tuesday/NNP
,/,
October/NNP
24/CD
,/,
1989/CD
The/DT
key/JJ
U.S./NNP
and/CC
foreign/JJ
annual/JJ
interest/NN
rates/NNS
below/RB
are/VBP
a/DT
guide/NN
to/TO
general/JJ
levels/NNS
but/CC
do/VBP
n't/RB
always/RB
represent/VB
actual/JJ
transactions/NNS
./.
PRIME/JJ
RATE/NN
:/:
10/CD
1\/2/CD
%/NN
./.
The/DT
base/JJ
rate/NN
on/IN
corporate/JJ
loans/NNS
at/IN
large/JJ
U.S./NNP
money/NN
center/NN
commercial/JJ
banks/NNS
./.
FEDERAL/JJ
FUNDS/NNS
:/:
8/CD
3\/4/CD
%/NN
high/JJ
,/,
8/CD
5\/8/CD
%/NN
low/JJ
,/,
8/CD
11\/16/CD
%/NN
near/IN
closing/NN
bid/NN
,/,
8/CD
11\/16/CD
%/NN
offered/VBN
./.
Reserves/NNS
traded/VBN|VBD
among/IN
commercial/JJ
banks/NNS
for/IN
overnight/JJ
use/NN
in/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
or/CC
more/JJR
./.
Source/NN
:/:
Fulton/NNP
Prebon/NNP
U.S.A/NNP
./.
Inc/NNP
./.
DISCOUNT/JJ
RATE/NN
:/:
7/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
depository/JJ
institutions/NNS
by/IN
the/DT
New/NNP
York/NNP
Federal/NNP
Reserve/NNP
Bank/NNP
./.
CALL/JJ
MONEY/NN
:/:
9/CD
3\/4/CD
%/NN
to/TO
10/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
brokers/NNS
on/IN
stock/NN
exchange/NN
collateral/NN
./.
COMMERCIAL/JJ
PAPER/NN
placed/VBN
directly/RB
by/IN
General/NNP
Motors/NNP
Acceptance/NNP
Corp./NNP
:/:
8.45/CD
%/NN
30/CD
to/TO
44/CD
days/NNS
;/:
8.25/CD
%/NN
45/CD
to/TO
68/CD
days/NNS
;/:
8.30/CD
%/NN
69/CD
to/TO
89/CD
days/NNS
;/:
8.125/CD
%/NN
90/CD
to/TO
119/CD
days/NNS
;/:
8/CD
%/NN
120/CD
to/TO
149/CD
days/NNS
;/:
7.875/CD
%/NN
150/CD
to/TO
179/CD
days/NNS
;/:
7.50/CD
%/NN
180/CD
to/TO
270/CD
days/NNS
./.
COMMERCIAL/JJ
PAPER/NN
:/:
High-grade/JJ
unsecured/JJ
notes/NNS
sold/VBN
through/IN
dealers/NNS
by/IN
major/JJ
corporations/NNS
in/IN
multiples/NNS
of/IN
$/$
1,000/CD
:/:
8.55/CD
%/NN
30/CD
days/NNS
;/:
8.475/CD
%/NN
60/CD
days/NNS
;/:
8.45/CD
%/NN
90/CD
days/NNS
./.
CERTIFICATES/NNS
OF/IN
DEPOSIT/NN
:/:
8.09/CD
%/NN
one/CD
month/NN
;/:
8.09/CD
%/NN
two/CD
months/NNS
;/:
8.06/CD
%/NN
three/CD
months/NNS
;/:
8/CD
%/NN
six/CD
months/NNS
;/:
7.94/CD
%/NN
one/CD
year/NN
./.
Average/JJ
of/IN
top/JJ
rates/NNS
paid/VBN
by/IN
major/JJ
New/NNP
York/NNP
banks/NNS
on/IN
primary/JJ
new/JJ
issues/NNS
of/IN
negotiable/JJ
C.D.s/NNS
,/,
usually/RB
on/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
and/CC
more/JJR
./.
The/DT
minimum/JJ
unit/NN
is/VBZ
$/$
100,000/CD
./.
Typical/JJ
rates/NNS
in/IN
the/DT
secondary/JJ
market/NN
:/:
8.55/CD
%/NN
one/CD
month/NN
;/:
8.50/CD
%/NN
three/CD
months/NNS
;/:
8.35/CD
%/NN
six/CD
months/NNS
./.
BANKERS/NNS
ACCEPTANCES/NNS
:/:
8.48/CD
%/NN
30/CD
days/NNS
;/:
8.30/CD
%/NN
60/CD
days/NNS
;/:
8.28/CD
%/NN
90/CD
days/NNS
;/:
8.10/CD
%/NN
120/CD
days/NNS
;/:
8/CD
%/NN
150/CD
days/NNS
;/:
7.90/CD
%/NN
180/CD
days/NNS
./.
Negotiable/JJ
,/,
bank-backed/JJ
business/NN
credit/NN
instruments/NNS
typically/RB
financing/VBG
an/DT
import/NN
order/NN
./.
LONDON/NNP
LATE/JJ
EURODOLLARS/NNS
:/:
8/CD
11\/16/CD
%/NN
to/TO
8/CD
9\/16/CD
%/NN
one/CD
month/NN
;/:
8/CD
5\/8/CD
%/NN
to/TO
8/CD
1\/2/CD
%/NN
two/CD
months/NNS
;/:
8/CD
5\/8/CD
%/NN
to/TO
8/CD
1\/2/CD
%/NN
three/CD
months/NNS
;/:
8/CD
9\/16/CD
%/NN
to/TO
8/CD
7\/16/CD
%/NN
four/CD
months/NNS
;/:
8/CD
1\/2/CD
%/NN
to/TO
8/CD
3\/8/CD
%/NN
five/CD
months/NNS
;/:
8/CD
7\/16/CD
%/NN
to/TO
8/CD
5\/16/CD
%/NN
six/CD
months/NNS
./.
LONDON/NNP
INTERBANK/NN
OFFERED/VBN
RATES/NNS
LIBOR/NNP
8/CD
11\/16/CD
%/NN
one/CD
month/NN
;/:
8/CD
11\/16/CD
%/NN
three/CD
months/NNS
;/:
8/CD
1\/2/CD
%/NN
six/CD
months/NNS
;/:
8/CD
1\/2/CD
%/NN
one/CD
year/NN
./.
The/DT
average/NN
of/IN
interbank/NN
offered/VBN
rates/NNS
for/IN
dollar/NN
deposits/NNS
in/IN
the/DT
London/NNP
market/NN
based/VBN
on/IN
quotations/NNS
at/IN
five/CD
major/JJ
banks/NNS
./.
FOREIGN/JJ
PRIME/JJ
RATES/NNS
:/:
Canada/NNP
13.50/CD
%/NN
;/:
Germany/NNP
9/CD
%/NN
;/:
Japan/NNP
4.875/CD
%/NN
;/:
Switzerland/NNP
8.50/CD
%/NN
;/:
Britain/NNP
15/CD
%/NN
./.
These/DT
rate/NN
indications/NNS
are/VBP
n't/RB
directly/RB
comparable/JJ
;/:
lending/NN
practices/NNS
vary/VBP
widely/RB
by/IN
location/NN
./.
TREASURY/NNP
BILLS/NNS
:/:
Results/NNS
of/IN
the/DT
Monday/NNP
,/,
October/NNP
23/CD
,/,
1989/CD
,/,
auction/NN
of/IN
short-term/JJ
U.S./NNP
government/NN
bills/NNS
,/,
sold/VBN
at/IN
a/DT
discount/NN
from/IN
face/NN
value/NN
in/IN
units/NNS
of/IN
$/$
10,000/CD
to/TO
$/$
1/CD
million/CD
:/:
7.52/CD
%/NN
13/CD
weeks/NNS
;/:
7.50/CD
%/NN
26/CD
weeks/NNS
./.
FEDERAL/NNP
HOME/NNP
LOAN/NNP
MORTGAGE/NNP
CORP/NNP
./.
Freddie/NNP
Mac/NNP
yields/NNS
on/IN
30-year/JJ
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NN
./.
9.78/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
7.875/CD
%/NN
,/,
2/CD
%/NN
rate/NN
capped/JJ
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNP
Inc/NNP
./.
FEDERAL/NNP
NATIONAL/NNP
MORTGAGE/NNP
ASSOCIATION/NNP
Fannie/NNP
Mae/NNP
yields/NNS
on/IN
30/CD
year/NN
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
par/NN
9.75/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
8.70/CD
%/NN
,/,
6\/2/CD
rate/NN
capped/VBN
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNP
Inc/NNP
./.
MERRILL/NNP
LYNCH/NNP
READY/NNP
ASSETS/NNP
TRUST/NNP
:/:
8.59/CD
%/NN
./.
Annualized/JJ
average/JJ
rate/NN
of/IN
return/NN
after/IN
expenses/NNS
for/IN
the/DT
past/JJ
30/CD
days/NNS
;/:
not/RB
a/DT
forecast/NN
of/IN
future/JJ
returns/NNS
./.
Roy/NNP
E./NNP
Parrott/NNP
,/,
the/DT
company/NN
's/POS
president/NN
and/CC
chief/NN
operating/NN
officer/NN
since/IN
Sept./NNP
1/CD
,/,
was/VBD
named/VBN
to/TO
its/PRP$
board/NN
./.
The/DT
appointment/NN
increased/VBD
the/DT
number/NN
of/IN
directors/NNS
to/TO
10/CD
,/,
three/CD
of/IN
whom/WP
are/VBP
company/NN
employees/NNS
./.
Simpson/NNP
is/VBZ
an/DT
auto/NN
parts/NNS
maker/NN
./.
Japan/NNP
has/VBZ
climbed/VBN
up/IN
from/IN
the/DT
ashes/NNS
of/IN
World/NNP
War/NNP
II/NNP
and/CC
a/DT
gross/JJ
national/JJ
product/NN
of/IN
about/RB
$/$
800/CD
per/IN
capita/NNS
to/TO
reach/VB
the/DT
heavyweight/JJ
class/NN
among/IN
industrialized/JJ
nations/NNS
./.
Now/RB
this/DT
remarkable/JJ
economic/JJ
growth/NN
seems/VBZ
to/TO
be/VB
coming/VBG
to/TO
an/DT
end/NN
because/IN
the/DT
government/NN
has/VBZ
not/RB
converted/VBN
itself/PRP
into/IN
a/DT
modern/JJ
,/,
democratic/JJ
,/,
``/``
developed/JJ
nation/NN
''/''
mode/NN
of/IN
operation/NN
./.
Until/IN
1980/CD
,/,
when/WRB
Japan/NNP
joined/VBD
the/DT
$/$
10,000/CD
per/IN
capita/NN
GNP/NN
club/NN
of/IN
the/DT
advanced/JJ
countries/NNS
,/,
it/PRP
was/VBD
a/DT
model/JJ
developing/VBG
nation/NN
./.
The/DT
government/NN
built/VBD
ports/NNS
,/,
bridges/NNS
,/,
highways/NNS
,/,
schools/NNS
,/,
hospitals/NNS
and/CC
railways/NNS
./.
When/WRB
industries/NNS
were/VBD
weak/JJ
,/,
it/PRP
protected/VBD
them/PRP
./.
It/PRP
gave/VBD
the/DT
Japanese/JJ
people/NNS
a/DT
value/NN
system/NN
,/,
based/VBN
on/IN
the/DT
rationalization/NN
that/IN
given/VBN
the/DT
country/NN
's/POS
lack/NN
of/IN
natural/JJ
resources/NNS
,/,
they/PRP
must/MD
work/VB
hard/RB
to/TO
create/VB
value/NN
through/IN
exports/NNS
and/CC
buy/VB
food/NN
with/IN
the/DT
surplus/NN
./.
Individual/JJ
prosperity/NN
inevitably/RB
would/MD
result/VB
./.
That/DT
system/NN
has/VBZ
worked/VBN
./.
The/DT
standard/NN
of/IN
living/NN
has/VBZ
increased/VBN
steadily/RB
over/IN
the/DT
past/JJ
40/CD
years/NNS
;/:
more/JJR
than/IN
90/CD
%/NN
of/IN
the/DT
people/NNS
consider/VBP
themselves/PRP
middle/JJ
class/NN
./.
The/DT
people/NNS
have/VBP
given/VBN
their/PRP$
leading/JJ
and/CC
only/JJ
credible/JJ
political/JJ
party/NN
,/,
the/DT
Liberal/NNP
Democratic/NNP
Party/NNP
,/,
clear/JJ
and/CC
uninterrupted/JJ
power/NN
for/IN
those/DT
40/CD
years/NNS
./.
The/DT
LDP/NNP
won/VBD
by/IN
a/DT
landslide/NN
in/IN
the/DT
last/JJ
election/NN
,/,
in/IN
July/NNP
1986/CD
./.
But/CC
less/RBR|JJR
than/IN
two/CD
years/NNS
later/RBR
,/,
the/DT
LDP/NNP
started/VBD
to/TO
crumble/VB
,/,
and/CC
dissent/NN
rose/VBD
to/TO
unprecedented/JJ
heights/NNS
./.
The/DT
symptoms/NNS
all/DT
point/VBP
to/TO
one/CD
thing/NN
:/:
Japan/NNP
does/VBZ
not/RB
have/VB
a/DT
modern/JJ
government/NN
./.
Its/PRP$
government/NN
still/RB
wants/VBZ
to/TO
sit/VB
in/IN
the/DT
driver/NN
's/POS
seat/NN
,/,
set/VB
the/DT
speed/NN
,/,
step/VB
on/IN
the/DT
gas/NN
,/,
apply/VB
the/DT
brakes/NNS
and/CC
steer/VB
,/,
with/IN
120/CD
million/CD
people/NNS
in/IN
the/DT
back/JJ
seat/NN
./.
In/IN
a/DT
modern/JJ
system/NN
,/,
the/DT
government/NN
's/POS
role/NN
is/VBZ
to/TO
give/VB
the/DT
people/NNS
as/IN
much/JJ
choice/NN
as/IN
possible/JJ
and/CC
to/TO
keep/VB
them/PRP
well/RB
informed/VBN
so/IN
they/PRP
are/VBP
capable/JJ
of/IN
making/VBG
a/DT
choice/NN
./.
It/PRP
also/RB
allows/VBZ
people/NNS
to/TO
buy/VB
the/DT
best/JJS
and/CC
the/DT
cheapest/JJS
goods/NNS
from/IN
anywhere/RB
in/IN
the/DT
world/NN
./.
The/DT
Japanese/JJ
government/NN
does/VBZ
n't/RB
allow/VB
this/DT
./.
The/DT
Ministry/NNP
of/IN
Agriculture/NNP
and/CC
Fishery/NNP
actually/RB
is/VBZ
a/DT
ministry/NN
for/IN
farmers/NNS
and/CC
fishermen/NNS
instead/RB
of/IN
a/DT
ministry/NN
of/IN
provisions/NNS
./.
The/DT
Ministry/NNP
of/IN
Health/NNP
and/CC
Welfare/NNP
is/VBZ
a/DT
ministry/NN
of/IN
doctors/NNS
and/CC
pharmaceutical/JJ
companies/NNS
rather/RB
than/IN
an/DT
organization/NN
dedicated/VBN
to/TO
protecting/VBG
the/DT
health/NN
of/IN
the/DT
people/NNS
./.
The/DT
Ministry/NNP
of/IN
Education/NNP
is/VBZ
nothing/NN
but/CC
a/DT
cartel/NN
for/IN
licensed/JJ
teachers/NNS
,/,
and/CC
certainly/RB
does/VBZ
not/RB
act/VB
on/IN
behalf/NN
of/IN
students/NNS
./.
The/DT
Ministry/NNP
of/IN
Construction/NNP
spreads/VBZ
concrete/NN
throughout/IN
the/DT
country/NN
and/CC
boasts/VBZ
in/IN
international/JJ
conferences/NNS
that/IN
Japan/NNP
's/POS
paved/JJ
roadway/NN
per/IN
capita/NN
is/VBZ
the/DT
longest/JJS
in/IN
the/DT
world/NN
,/,
but/CC
they/PRP
seldom/RB
think/VBP
of/IN
the/DT
poor/JJ
commuters/NNS
who/WP
spend/VBP
so/RB
much/JJ
time/NN
sitting/VBG
in/IN
traffic/NN
./.
The/DT
Ministry/NNP
of/IN
Transportation/NNP
serves/VBZ
the/DT
industry/NN
,/,
certainly/RB
not/RB
the/DT
passengers/NNS
who/WP
must/MD
pay/VB
extraordinarily/RB
high/JJ
prices/NNS
./.
And/CC
the/DT
Ministry/NNP
of/IN
Foreign/NNP
Affairs/NNP
works/VBZ
for/IN
itself/PRP
,/,
supporting/VBG
Japanese/JJ
diplomats/NNS
who/WP
sprinkle/VBP
abundant/JJ
aid/NN
money/NN
around/IN
the/DT
world/NN
to/TO
ensure/VB
that/DT
their/PRP$
seat/NN
at/IN
the/DT
dinner/NN
table/NN
is/VBZ
next/RB
to/TO
the/DT
host/NN
's/POS
./.
This/DT
ministry/NN
has/VBZ
done/VBN
nothing/NN
to/TO
correct/VB
the/DT
misunderstandings/NNS
and/CC
misperceptions/NNS
that/WDT
are/VBP
at/IN
the/DT
root/NN
of/IN
Japan/NNP
's/POS
deteriorating/VBG
image/NN
./.
Instead/RB
,/,
it/PRP
seems/VBZ
to/TO
be/VB
using/VBG
foreign/JJ
pressure/NN
and/CC
even/RB
the/DT
trade/NN
conflict/NN
to/TO
expand/VB
its/PRP$
sphere/NN
of/IN
influence/NN
vis/FW
a/FW
vis/FW
other/JJ
ministries/NNS
./.
All/PDT
this/DT
illustrates/VBZ
that/IN
Japanese/JJ
ministries/NNS
still/RB
have/VBP
a/DT
``/``
provider/NN
''/''
mentality/NN
;/:
they/PRP
do/VBP
not/RB
serve/VB
the/DT
people/NNS
,/,
and/CC
particularly/RB
not/RB
consumers/NNS
./.
They/PRP
serve/VBP
the/DT
industries/NNS
and/CC
the/DT
special-interest/JJ
groups/NNS
./.
The/DT
rest/NN
of/IN
the/DT
world/NN
accepted/VBD
such/JJ
methods/NNS
when/WRB
Japan/NNP
was/VBD
developing/VBG
./.
Japanese/NNPS
put/VBD
up/RP
with/IN
it/PRP
because/IN
the/DT
government/NN
provided/VBD
job/NN
stability/NN
and/CC
growing/VBG
paychecks/NNS
./.
Japan/NNP
is/VBZ
not/RB
a/DT
political/JJ
country/NN
./.
It/PRP
is/VBZ
a/DT
bureaucratic/JJ
country/NN
./.
The/DT
Diet/NNP
plays/VBZ
a/DT
minor/JJ
role/NN
compared/VBN
with/IN
the/DT
powerful/JJ
bureaucratic/JJ
system/NN
./.
Most/JJS
bills/NNS
are/VBP
drafted/VBN
by/IN
bureaucrats/NNS
,/,
not/RB
politicians/NNS
./.
The/DT
Diet/NNP
does/VBZ
n't/RB
normally/RB
even/VB
debate/VB
bills/NNS
because/IN
the/DT
opposition/NN
parties/NNS
are/VBP
so/RB
often/RB
opposed/VBN
to/TO
whatever/WDT
LDP/NNP
does/VBZ
that/IN
it/PRP
would/MD
be/VB
a/DT
waste/NN
of/IN
time/NN
./.
So/RB
most/JJS
bills/NNS
are/VBP
passed/VBN
without/IN
full/JJ
discussion/NN
;/:
particularly/RB
difficult/JJ
bills/NNS
are/VBP
passed/VBN
in/IN
the/DT
absence/NN
of/IN
the/DT
opposition/NN
parties/NNS
./.
A/DT
recent/JJ
example/NN
is/VBZ
the/DT
3/CD
%/NN
consumption/NN
tax/NN
on/IN
all/DT
commercial/JJ
activities/NNS
./.
This/DT
makes/VBZ
enormous/JJ
sense/NN
in/IN
Japan/NNP
,/,
where/WRB
direct/JJ
tax/NN
accounts/VBZ
for/IN
more/JJR
than/IN
70/CD
%/NN
of/IN
revenues/NNS
and/CC
the/DT
capture/NN
rate/NN
of/IN
direct/JJ
tax/NN
is/VBZ
so/RB
unfair/JJ
./.
If/IN
you/PRP
are/VBP
a/DT
salaried/JJ
man/NN
,/,
Amen/UH
!/.
100/CD
%/NN
captured/VBN|JJ
./.
If/IN
you/PRP
are/VBP
a/DT
retailer/NN
,/,
50/CD
%/NN
,/,
and/CC
a/DT
farmer/NN
,/,
30/CD
%/NN
./.
To/TO
correct/VB
this/DT
inequality/NN
,/,
most/JJS
people/NNS
would/MD
have/VB
favored/VBN
an/DT
indirect/JJ
tax/NN
,/,
like/IN
the/DT
consumption/NN
tax/NN
./.
But/CC
the/DT
bill/NN
was/VBD
passed/VBN
without/IN
debate/NN
in/IN
the/DT
Diet/NNP
,/,
in/IN
the/DT
absence/NN
of/IN
the/DT
opposition/NN
./.
As/IN
a/DT
result/NN
,/,
the/DT
Japanese/JJ
people/NNS
did/VBD
n't/RB
know/VB
what/WP
to/TO
expect/VB
when/WRB
the/DT
new/JJ
law/NN
was/VBD
introduced/VBN
on/IN
April/NNP
1/CD
./.
They/PRP
were/VBD
frustrated/VBN
by/IN
the/DT
longer/JJR
queues/NNS
at/IN
the/DT
cashier/NN
and/CC
the/DT
small/JJ
coins/NNS
given/VBN
as/IN
change/NN
./.
All/RB
of/IN
a/DT
sudden/JJ
,/,
prices/NNS
were/VBD
no/RB
longer/RBR
in/IN
denominations/NNS
of/IN
100/CD
or/CC
200/CD
./.
They/PRP
were/VBD
103/CD
or/CC
206/CD
./.
Pockets/NNS
exploded/VBD
with/IN
one-yen/JJ
coins/NNS
./.
While/IN
people/NNS
were/VBD
jingling/VBG
their/PRP$
change/NN
,/,
the/DT
LDP/NNP
politicians/NNS
were/VBD
caught/VBN
in/IN
scandals/NNS
./.
Money/NN
,/,
such/JJ
as/IN
in/IN
Recruit/NNP
's/POS
political/JJ
donations/NNS
,/,
and/CC
women/NNS
,/,
as/IN
in/IN
the/DT
cases/NNS
of/IN
Prime/NNP
Minister/NNP
Sosuke/NNP
Uno/NNP
and/CC
Secretary/NNP
General/NNP
Tokuo/NNP
Yamashita/NNP
,/,
seldom/RB
have/VBP
caused/VBN
political/JJ
scandals/NNS
in/IN
Japan/NNP
./.
Whereas/IN
most/JJS
men/NNS
were/VBD
a/DT
bit/NN
ambivalent/JJ
about/IN
the/DT
sex/NN
scandals/NNS
they/PRP
were/VBD
furious/JJ
about/IN
Recruit/NNP
women/NNS
were/VBD
upset/JJ
about/IN
both/DT
and/CC
surged/VBD
to/TO
the/DT
polls/NNS
./.
In/IN
the/DT
recent/JJ
Upper/NNP
House/NNP
and/CC
Tokyo/NNP
metropolitan/JJ
congressional/JJ
elections/NNS
,/,
in/IN
which/WDT
the/DT
Socialist/NNP
Party/NNP
won/VBD
a/DT
runaway/JJ
victory/NN
,/,
60/CD
%/NN
of/IN
all/DT
women/NNS
voted/VBD
,/,
as/IN
opposed/VBN
to/TO
the/DT
usual/JJ
40/CD
%/NN
./.
It/PRP
is/VBZ
difficult/JJ
to/TO
analyze/VB
how/WRB
much/JJ
of/IN
their/PRP$
anger/NN
was/VBD
due/JJ
to/TO
Recruit/NNP
,/,
the/DT
sex/NN
scandals/NNS
,/,
or/CC
the/DT
one-yen/JJ
coins/NNS
in/IN
their/PRP$
purses/NNS
,/,
but/CC
they/PRP
obviously/RB
were/VBD
voting/VBG
to/TO
punish/VB
the/DT
LDP/NNP
./.
Taken/VBN
by/IN
surprise/NN
,/,
the/DT
Socialist/NNP
Party/NNP
is/VBZ
busy/JJ
changing/VBG
its/PRP$
doctrines/NNS
./.
It/PRP
's/VBZ
now/RB
OK/JJ
to/TO
deal/VB
with/IN
the/DT
U.S./NNP
,/,
but/CC
not/RB
the/DT
Soviet/NNP
Union/NNP
./.
Nuclear/JJ
power/NN
plants/NNS
are/VBP
acceptable/JJ
./.
The/DT
U.S.-Japan/NNP
Security/NNP
Treaty/NNP
can/MD
continue/VB
,/,
sort/NN
of/IN
./.
And/CC
so/RB
on/RB
./.
Against/IN
the/DT
rapid/JJ
cosmetic/JJ
overhaul/NN
of/IN
the/DT
Socialist/NNP
Party/NNP
the/DT
LDP/NNP
has/VBZ
been/VBN
paralyzed/VBN
./.
Now/RB
is/VBZ
the/DT
time/NN
to/TO
reform/VB
the/DT
government/NN
from/IN
a/DT
provider/NN
,/,
developing-country/JJ
vanguard/NN
role/NN
to/TO
that/DT
of/IN
a/DT
modern/JJ
,/,
industrialized/JJ
nation/NN
in/IN
which/WDT
consumers/NNS
have/VBP
the/DT
ultimate/JJ
choice/NN
./.
If/IN
the/DT
LDP/NNP
,/,
as/RB
currently/RB
composed/VBN
,/,
ca/MD
n't/RB
make/VB
the/DT
transformation/NN
,/,
then/RB
it/PRP
should/MD
split/VB
into/IN
two/CD
parties/NNS
./.
One/CD
party/NN
could/MD
stand/VB
for/IN
consumer/NN
interests/NNS
,/,
small/JJ
government/NN
,/,
free/JJ
trade/NN
and/CC
globalism/NN
to/TO
put/VB
Japan/NNP
clearly/RB
among/IN
the/DT
most/RBS
developed/JJ
and/CC
open/JJ
countries/NNS
./.
The/DT
other/JJ
party/NN
could/MD
continue/VB
on/IN
the/DT
traditional/JJ
track/NN
of/IN
the/DT
LDP/NNP
,/,
representing/VBG
the/DT
manufacturers/NNS
'/POS
preference/NN
for/IN
larger/JJR
government/NN
,/,
control/NN
,/,
regulation/NN
and/CC
protectionism/NN
./.
The/DT
LDP/NNP
must/MD
make/VB
a/DT
decision/NN
immediately/RB
;/:
Lower/NNP
House/NNP
elections/NNS
must/MD
take/VB
place/NN
before/IN
June/NNP
./.
In/IN
the/DT
current/JJ
mood/NN
of/IN
the/DT
Japanese/JJ
people/NNS
,/,
journalists/NNS
and/CC
even/RB
some/DT
industrialists/NNS
,/,
giving/VBG
power/NN
to/TO
the/DT
Socialists/NNPS
might/MD
be/VB
good/JJ
for/IN
the/DT
LDP/NNP
,/,
cleansing/VBG
it/PRP
of/IN
past/JJ
sins/NNS
./.
We/PRP
must/MD
not/RB
forget/VB
,/,
however/RB
,/,
that/IN
such/PDT
a/DT
humble/JJ
political/JJ
experiment/NN
could/MD
cause/VB
a/DT
global/JJ
tidal/JJ
wave/NN
of/IN
shocks/NNS
in/IN
real-estate/NN
and/CC
financial/JJ
markets/NNS
./.
At/IN
the/DT
most/JJS
there/EX
is/VBZ
only/RB
nine/CD
months/NNS
before/IN
the/DT
LDP/NNP
fuse/NN
burns/VBZ
out/RP
./.
Mr./NNP
Ohmae/NNP
is/VBZ
managing/NN
director/NN
of/IN
McKinsey/NNP
&/CC
Co./NNP
in/IN
Japan/NNP
./.
Early/RB
this/DT
century/NN
,/,
diamond/NN
mining/NN
in/IN
the/DT
magnificent/JJ
dunes/NNS
where/WRB
the/DT
Namib/NNP
Desert/NNP
meets/VBZ
the/DT
Atlantic/NNP
Ocean/NNP
was/VBD
a/DT
day/NN
at/IN
the/DT
beach/NN
./.
Men/NN
would/MD
crawl/VB
in/IN
the/DT
sand/NN
looking/VBG
for/IN
shiny/JJ
stones/NNS
./.
It/PRP
was/VBD
as/RB
easy/JJ
as/IN
collecting/VBG
sea/NN
shells/NNS
at/IN
Malibu/NNP
./.
Men/NN
are/VBP
still/RB
combing/VBG
the/DT
beach/NN
with/IN
shovels/NNS
and/CC
hand/NN
brushes/NNS
,/,
searching/VBG
for/IN
that/DT
unusual/JJ
glint/NN
./.
But/CC
only/RB
after/IN
a/DT
fleet/NN
of/IN
336/CD
gargantuan/JJ
earthmoving/JJ
vehicles/NNS
belonging/VBG
to/TO
De/NNP
Beers/NNP
Consolidated/NNP
Mines/NNP
Ltd./NNP
,/,
the/DT
world/NN
's/POS
diamond/NN
kingpins/NNS
,/,
do/VBP
their/PRP$
work/NN
./.
Last/JJ
year/NN
,/,
43/CD
million/CD
tons/NNS
of/IN
desert/NN
were/VBD
moved/VBN
from/IN
one/CD
dune/NN
to/TO
another/DT
to/TO
recover/VB
934,242/CD
carats/NNS
,/,
which/WDT
comes/VBZ
to/TO
46/CD
tons/NNS
of/IN
sand/NN
per/IN
carat/NN
,/,
or/CC
one-fifth/JJ
gram/NN
./.
Oh/UH
yes/UH
,/,
the/DT
Atlantic/NNP
was/VBD
also/RB
pushed/VBN
back/RP
300/CD
yards/NNS
./.
``/``
If/IN
there/EX
's/POS
diamonds/NNS
out/RB
there/RB
,/,
we/PRP
'll/MD
get/VB
to/TO
them/PRP
,/,
''/''
says/VBZ
Les/NNP
Johns/NNP
,/,
De/NNP
Beers/NNP
's/POS
engineering/NN
manager/NN
./.
Here/RB
,/,
wedged/VBN
between/IN
shifting/VBG
dunes/NNS
and/CC
pounding/VBG
waves/NNS
at/IN
the/DT
world/NN
's/VBZ
most/RBS
inhospitable/JJ
diamond/NN
dig/NN
,/,
lies/VBZ
the/DT
earth/NN
's/VBZ
most/RBS
precious/JJ
jewel/NN
box/NN
./.
Thanks/NNS
to/TO
centuries/NNS
of/IN
polishing/VBG|NN
by/IN
Mother/NNP
Nature/NNP
--/:
first/RB
in/IN
the/DT
gentle/JJ
current/NN
of/IN
the/DT
Orange/NNP
River/NNP
that/WDT
carried/VBD
the/DT
stones/NNS
from/IN
South/NNP
Africa/NNP
's/POS
interior/NN
,/,
then/RB
in/IN
the/DT
cold/JJ
surf/NN
of/IN
the/DT
ocean/NN
,/,
and/CC
finally/RB
in/IN
the/DT
coarse/JJ
sands/NNS
of/IN
the/DT
desert/NN
--/:
98/CD
%/NN
of/IN
the/DT
diamonds/NNS
uncovered/VBN
are/VBP
of/IN
gem/NN
quality/NN
./.
While/IN
other/JJ
mines/NNS
might/MD
yield/VB
more/JJR
carats/NNS
,/,
a/DT
higher/JJR
percentage/NN
of/IN
them/PRP
go/VBP
to/TO
industrial/JJ
use/NN
./.
Since/IN
this/DT
treasure/NN
chest/NN
is/VBZ
too/RB
big/JJ
to/TO
fit/VB
in/IN
a/DT
bank/NN
vault/NN
,/,
it/PRP
has/VBZ
been/VBN
turned/VBN
into/IN
one/NN
./.
Months/NNS
after/IN
railway/NN
worker/NN
Zacharias/NNP
Lewala/NNP
first/RB
picked/VBD
up/RP
a/DT
diamond/NN
from/IN
the/DT
sand/NN
in/IN
1908/CD
,/,
the/DT
German/JJ
colonialists/NNS
who/WP
controlled/VBD
Namibia/NNP
proclaimed/VBD
a/DT
wide/JJ
swath/NN
of/IN
the/DT
desert/NN
--/:
about/RB
200/CD
miles/NNS
north/RB
from/IN
the/DT
Orange/NNP
River/NNP
and/CC
60/CD
miles/NNS
inland/RB
from/IN
the/DT
Atlantic/NNP
--/:
a/DT
restricted/JJ
area/NN
,/,
a/DT
designation/NN
normally/RB
reserved/VBN
for/IN
military/JJ
operations/NNS
./.
When/WRB
the/DT
Germans/NNPS
lost/VBD
World/NNP
War/NNP
I/NNP
,/,
they/PRP
lost/VBD
Namibia/NNP
to/TO
South/NNP
Africa/NNP
and/CC
the/DT
diamonds/NNS
to/TO
Ernest/NNP
Oppenheimer/NNP
,/,
patriarch/NN
of/IN
Anglo/NNP
American/NNP
Corp./NNP
and/CC
De/NNP
Beers/NNP
./.
Today/NN
,/,
no/DT
one/NN
gets/VBZ
in/IN
or/CC
out/IN
of/IN
the/DT
restricted/JJ
area/NN
without/IN
De/NNP
Beers/NNP
's/POS
stingy/JJ
approval/NN
./.
The/DT
mining/NN
zone/NN
has/VBZ
thus/RB
remained/VBN
one/CD
of/IN
the/DT
most/RBS
desolate/JJ
places/NNS
in/IN
Africa/NNP
./.
Ghost/NN
towns/NNS
dot/VBP
the/DT
Namib/NNP
dunes/NNS
,/,
proving/VBG
diamonds/NNS
are/VBP
n't/RB
forever/RB
./.
Oranjemund/NNP
,/,
the/DT
mine/JJ
headquarters/NN
,/,
is/VBZ
a/DT
lonely/JJ
corporate/JJ
oasis/NN
of/IN
9,000/CD
residents/NNS
./.
Jackals/NNS
roam/VBP
the/DT
streets/NNS
at/IN
night/NN
,/,
and/CC
gemsbok/NNS
,/,
hardy/JJ
antelope/NNS
with/IN
long/JJ
straight/JJ
horns/NNS
,/,
wander/VBP
in/IN
from/IN
the/DT
desert/NN
to/TO
drink/VB
from/IN
water/NN
sprinklers/NNS
./.
On/IN
most/JJS
days/NNS
,/,
the/DT
desert/NN
's/POS
heat/NN
and/CC
the/DT
cool/NN
of/IN
the/DT
ocean/NN
combine/VBP
to/TO
create/VB
a/DT
mist/NN
like/IN
a/DT
damp/JJ
rag/NN
./.
The/DT
wind/NN
,/,
stinging/JJ
with/IN
sand/NN
,/,
never/RB
seems/VBZ
to/TO
stop/VB
./.
Still/RB
,/,
miners/NNS
from/IN
all/DT
parts/NNS
of/IN
Namibia/NNP
as/RB
well/RB
as/IN
professional/JJ
staff/NN
from/IN
De/NNP
Beers/NNP
's/POS
head/NN
offices/NNS
in/IN
South/NNP
Africa/NNP
and/CC
London/NNP
keep/VBP
coming/VBG
./.
And/CC
Oranjemund/NNP
boasts/VBZ
attractions/NNS
besides/IN
diamonds/NNS
./.
There/EX
are/VBP
six/CD
video/JJ
rental/JJ
shops/NNS
,/,
three/CD
restaurants/NNS
,/,
one/CD
cinema/NN
and/CC
34/CD
sports/NNS
and/CC
recreation/NN
clubs/NNS
for/IN
everything/NN
from/IN
cricket/NN
to/TO
lawn/NN
bowling/NN
./.
The/DT
pride/NN
of/IN
Oranjemund/NNP
is/VBZ
the/DT
18-hole/JJ
golf/NN
course/NN
--/:
with/IN
the/DT
largest/JJS
sand/NN
trap/NN
in/IN
the/DT
world/NN
./.
Last/JJ
year/NN
,/,
when/WRB
the/DT
rising/VBG
Orange/NNP
River/NNP
threatened/VBD
to/TO
swamp/VB
the/DT
course/NN
,/,
the/DT
same/JJ
engineers/NNS
who/WP
are/VBP
pushing/VBG
back/RP
the/DT
Atlantic/NNP
rushed/VBD
to/TO
build/VB
a/DT
wall/NN
to/TO
hold/VB
back/RP
the/DT
flood/NN
./.
``/``
Nothing/NN
is/VBZ
too/RB
good/JJ
for/IN
our/PRP$
golf/NN
course/NN
,/,
''/''
says/VBZ
Tony/NNP
George/NNP
,/,
a/DT
mining/NN
engineer/NN
./.
Despite/IN
fears/NNS
the/DT
mine/NN
may/MD
be/VB
partially/RB
nationalized/VBN
by/IN
the/DT
new/JJ
Namibian/JJ
government/NN
following/VBG
next/JJ
month/NN
's/POS
elections/NNS
freeing/VBG
the/DT
country/NN
from/IN
South/JJ
African/JJ
control/NN
,/,
De/NNP
Beers/NNP
engineers/NNS
are/VBP
working/VBG
to/TO
extend/VB
the/DT
mine/NN
's/POS
productive/JJ
life/NN
for/IN
another/DT
25/CD
years/NNS
,/,
from/IN
the/DT
current/JJ
estimate/NN
of/IN
10/CD
./.
Huge/JJ
machines/NNS
that/WDT
look/VBP
as/IN
though/IN
they/PRP
came/VBD
from/IN
the/DT
Star/NNP
Wars/NNP
desert-battle/JJ
scene/NN
lumber/VBP
among/IN
the/DT
dunes/NNS
./.
Mechanized/JJ
vacuum/NN
cleaners/NNS
probe/VBP
the/DT
sand/NN
like/IN
giant/JJ
anteaters/NNS
;/:
a/DT
whirring/VBG
ferris/JJ
wheellike/JJ
excavator/NN
,/,
with/IN
buckets/NNS
instead/RB
of/IN
seats/NNS
,/,
chews/NNS
through/IN
layers/NNS
of/IN
compacted/JJ
sand/NN
;/:
tracks/NNS
and/CC
conveyor/NN
belts/NNS
,/,
shuttling/VBG
sand/NN
to/TO
the/DT
screening/NN
plants/NNS
,/,
criss-cross/VBP
the/DT
beach/NN
./.
Then/RB
there/EX
is/VBZ
the/DT
artifical/JJ
sea/NN
wall/NN
,/,
600/CD
yards/NNS
long/JJ
and/CC
60/CD
yards/NNS
thick/JJ
,/,
jutting/VBG
into/IN
the/DT
ocean/NN
./.
Made/VBN
of/IN
sand/NN
,/,
it/PRP
receives/VBZ
around-the-clock/JJ
maintainence/NN
against/IN
the/DT
battering/VBG
waves/NNS
./.
When/WRB
the/DT
mining/NN
in/IN
front/NN
of/IN
the/DT
wall/NN
is/VBZ
complete/JJ
,/,
it/PRP
is/VBZ
moved/VBN
northward/RB
./.
A/DT
companion/NN
jetty/NN
that/WDT
helps/VBZ
hold/VB
back/RP
the/DT
sea/NN
looks/VBZ
like/IN
a/DT
rusting/JJ
junkyard/NN
./.
Engineers/NNS
first/RB
used/VBD
concrete/NN
blocks/NNS
to/TO
bolster/VB
the/DT
barrier/NN
,/,
but/CC
the/DT
ocean/NN
tossed/VBD
them/PRP
aside/RP
like/IN
driftwood/NN
./.
Then/RB
someone/NN
decided/VBD
to/TO
try/VB
broken-down/JJ
earthmoving/JJ
equipment/NN
that/WDT
,/,
inexplicably/RB
,/,
held/VBD
against/IN
the/DT
waves/NNS
./.
``/``
The/DT
Caterpillar/NNP
people/NNS
are/VBP
n't/RB
too/RB
happy/JJ
when/WRB
they/PRP
see/VBP
their/PRP$
equipment/NN
used/VBN
like/IN
that/DT
,/,
''/''
shrugs/VBZ
Mr./NNP
George/NNP
./.
``/``
They/PRP
figure/VBP
it/PRP
's/VBZ
not/RB
a/DT
very/RB
good/JJ
advert/NN
./.
''/''
Despite/IN
all/PDT
these/DT
innovations/NNS
,/,
most/JJS
of/IN
the/DT
diamonds/NNS
are/VBP
still/RB
found/VBN
in/IN
the/DT
sand/NN
swept/VBN
away/RB
by/IN
the/DT
men/NNS
wielding/VBG
shovels/NNS
and/CC
brushes/NNS
--/:
the/DT
ignominiously/RB
named/VBN
``/``
bedrock/NN
sweepers/NNS
''/''
who/WP
toil/VBP
in/IN
the/DT
wake/NN
of/IN
the/DT
excavators/NNS
./.
Laboring/VBG
in/IN
blue/JJ
and/CC
gray/JJ
overalls/NNS
,/,
they/PRP
are/VBP
supposed/VBN
to/TO
concentrate/VB
on/IN
cleaning/VBG
out/RP
crevices/NNS
,/,
and/CC
not/RB
strain/VB
their/PRP$
eyes/NNS
looking/VBG
for/IN
diamonds/NNS
./.
But/CC
should/MD
they/PRP
spy/VB
one/CD
,/,
the/DT
company/NN
will/MD
pay/VB
a/DT
bonus/NN
equal/JJ
to/TO
one-third/NN
its/PRP$
value/NN
./.
For/IN
these/DT
workers/NNS
at/IN
the/DT
bottom/NN
of/IN
the/DT
mine/NN
's/POS
pay/NN
scale/NN
,/,
this/DT
is/VBZ
usually/RB
enough/JJ
to/TO
overcome/VB
the/DT
temptation/NN
to/TO
steal/VB
--/:
a/DT
crime/NN
that/WDT
could/MD
earn/VB
them/PRP
up/IN
to/TO
15/CD
years/NNS
in/IN
jail/NN
./.
Still/RB
,/,
employees/NNS
do/VBP
occasionally/RB
try/VB
to/TO
smuggle/VB
out/RP
a/DT
gem/NN
or/CC
two/CD
./.
One/CD
man/NN
wrapped/VBD
several/JJ
diamonds/NNS
in/IN
the/DT
knot/NN
of/IN
his/PRP$
tie/NN
./.
Another/DT
poked/VBD
a/DT
hole/NN
in/IN
the/DT
heel/NN
of/IN
his/PRP$
shoe/NN
./.
A/DT
food/NN
caterer/NN
stashed/VBD
stones/NNS
in/IN
the/DT
false/JJ
bottom/NN
of/IN
a/DT
milk/NN
pail/NN
./.
None/NN
made/VBD
it/PRP
past/IN
the/DT
body/NN
searches/NNS
and/CC
X-rays/NNS
of/IN
mine/JJ
security/NN
./.
DISASTER/NN
STATES/NNS
are/VBP
n't/RB
jumping/VBG
to/TO
raise/VB
taxes/NNS
for/IN
relief/NN
and/CC
recovery/NN
./.
Not/RB
yet/RB
,/,
anyway/RB
./.
Just/RB
after/IN
Hurricane/NNP
Hugo/NNP
battered/VBD
South/NNP
Carolina/NNP
,/,
some/DT
officials/NNS
talked/VBD
of/IN
perhaps/RB
adding/VBG
a/DT
penny/NN
to/TO
the/DT
state/NN
gasoline/NN
tax/NN
or/CC
raising/VBG
property/NN
taxes/NNS
./.
Gov./NNP
Campbell/NNP
responded/VBD
,/,
``/``
They/PRP
're/VBP
mentioning/VBG
rope/NN
when/WRB
there/EX
's/VBZ
been/VBN
a/DT
hanging/NN
in/IN
the/DT
family/NN
./.
''/''
A/DT
spokesman/NN
says/VBZ
the/DT
governor/NN
believes/VBZ
he/PRP
can/MD
avoid/VB
increases/NNS
by/IN
relying/VBG
on/IN
federal/JJ
aid/NN
and/CC
shifting/VBG
funds/NNS
in/IN
state/NN
programs/NNS
./.
Still/RB
,/,
Hugo/NNP
's/POS
impact/NN
may/MD
revive/VB
unsuccessful/JJ
proposals/NNS
to/TO
give/VB
local/JJ
governments/NNS
authority/NN
to/TO
levy/VB
sales/JJ
taxes/NNS
./.
A/DT
spokesman/NN
for/IN
North/NNP
Carolina/NNP
Gov./NNP
Martin/NNP
says/VBZ
Hugo/NNP
has/VBZ
n't/RB
prompted/VBN
proposals/NNS
for/IN
state/NN
or/CC
local/JJ
increases/NNS
./.
California/NNP
,/,
where/WRB
earthquake/NN
damage/NN
may/MD
top/VB
$/$
5/CD
billion/CD
,/,
plans/VBZ
a/DT
special/JJ
legislative/JJ
session/NN
./.
Property-tax/JJ
relief/NN
is/VBZ
likely/JJ
./.
Legislators/NNS
are/VBP
talking/VBG
about/IN
temporary/JJ
rises/NNS
in/IN
sales/NNS
or/CC
gasoline/NN
taxes/NNS
,/,
although/IN
Gov./NNP
Deukmejian/NNP
says/VBZ
they/PRP
should/MD
be/VB
a/DT
last/JJ
resort/NN
./.
Needs/NNS
are/VBP
n't/RB
clear/JJ
,/,
and/CC
the/DT
state/NN
constitution/NN
makes/VBZ
increasing/VBG
taxes/NNS
and/CC
spending/VBG|NN
very/RB
difficult/JJ
./.
But/CC
some/DT
legislators/NNS
think/VBP
the/DT
time/NN
may/MD
be/VB
ripe/JJ
to/TO
revise/VB
the/DT
constitution/NN
./.
THE/DT
IRS/NNP
WILL/MD
PAY/VB
if/IN
its/PRP$
error/NN
burdens/VBZ
you/PRP
with/IN
bank/NN
charges/NNS
./.
Policy/NN
statement/NN
P-5-39/NNP
sets/VBZ
out/IN
terms/NNS
./.
As/IN
a/DT
result/NN
of/IN
an/DT
erroneous/JJ
IRS/NNP
levy/NN
on/IN
a/DT
bank/NN
account/NN
,/,
a/DT
taxpayer/NN
may/MD
incur/VB
administrative/JJ
and/CC
overdraft/NN
charges/NNS
./.
If/IN
the/DT
IRS/NNP
admits/VBZ
its/PRP$
error/NN
and/CC
the/DT
charges/NNS
have/VBP
been/VBN
paid/VBN
,/,
it/PRP
will/MD
reimburse/VB
a/DT
taxpayer/NN
who/WP
has/VBZ
n't/RB
refused/VBD
to/TO
give/VB
timely/JJ
answers/NNS
to/TO
IRS/NNP
inquiries/NNS
or/CC
has/VBZ
n't/RB
contributed/VBN
to/TO
continuing/VBG
or/CC
compounding/VBG
the/DT
error/NN
./.
The/DT
IRS/NNP
recently/RB
amended/VBD
the/DT
policy/NN
to/TO
cover/VB
stop-payment/NN
charges/NNS
for/IN
checks/NNS
lost/VBN
by/IN
the/DT
IRS/NNP
./.
If/IN
the/DT
IRS/NNP
asks/VBZ
for/IN
and/CC
gets/VBZ
a/DT
replacement/NN
for/IN
a/DT
check/NN
that/IN
it/PRP
concedes/VBZ
it/PRP
lost/VBD
in/IN
processing/NN
,/,
it/PRP
will/MD
reimburse/VB
the/DT
taxpayer/NN
for/IN
the/DT
stop-payment/NN
charge/NN
on/IN
the/DT
original/JJ
./.
Reimbursement/NN
claims/NNS
must/MD
be/VB
filed/VBN
with/IN
the/DT
IRS/NNP
district/NN
or/CC
service-center/NN
director/NN
within/IN
a/DT
year/NN
after/IN
the/DT
expense/NN
accrues/VBZ
./.
If/IN
the/DT
IRS/NNP
seeks/VBZ
late-payment/NN
interest/NN
because/IN
of/IN
the/DT
lost/JJ
check/NN
,/,
you/PRP
should/MD
request/VB
interest/NN
abatement/NN
,/,
publisher/NN
Prentice/NNP
Hall/NNP
notes/VBZ
./.
JUST/RB
FIVE/CD
ACRES/NNP
MORE/JJR
are/VBP
all/DT
we/PRP
need/VBP
to/TO
feel/VB
really/RB
at/IN
home/NN
,/,
they/PRP
say/VBP
./.
A/DT
couple/NN
we/PRP
'll/MD
call/VB
the/DT
Blandings/NNPS
spent/VBD
nearly/RB
$/$
800,000/CD
on/IN
a/DT
15-acre/JJ
plot/NN
and/CC
main/JJ
home/NN
and/CC
have/VBP
an/DT
old/JJ
$/$
175,000/CD
mortgage/NN
exempt/JJ
from/IN
the/DT
new/JJ
limit/NN
on/IN
mortgage-interest/JJ
deductions/NNS
./.
They/PRP
plan/VBP
to/TO
expand/VB
the/DT
home/NN
site/NN
by/IN
buying/VBG
five/CD
adjoining/JJ
acres/NNS
for/IN
$/$
200,000/CD
,/,
borrowed/VBN
against/IN
a/DT
first/JJ
mortgage/NN
on/IN
the/DT
five/CD
acres/NNS
and/CC
also/RB
collateralized/VBN
by/IN
the/DT
15/CD
acres/NNS
./.
Their/PRP$
debt/NN
will/MD
be/VB
well/RB
under/IN
the/DT
$/$
1/CD
million/CD
limit/NN
--/:
on/IN
borrowing/VBG|NN
to/TO
acquire/VB
,/,
build/VB
,/,
or/CC
improve/VB
a/DT
home/NN
--/:
that/WDT
qualifies/VBZ
for/IN
mortgage-interest/JJ
deductions/NNS
./.
As/IN
you/PRP
can/MD
guess/VB
,/,
the/DT
Blandings/NNS
want/VBP
to/TO
deduct/VB
home-mortgage/JJ
interest/NN
on/IN
the/DT
$/$
200,000/CD
loan/NN
./.
But/CC
,/,
IRS/NNP
private/JJ
ruling/NN
8940061/CD
notes/NNS
,/,
no/DT
rule/NN
or/CC
court/NN
case/NN
bears/VBZ
directly/RB
on/IN
the/DT
issue/NN
of/IN
adding/VBG
land/NN
to/TO
a/DT
principal/JJ
residence/NN
./.
So/RB
the/DT
IRS/NNP
has/VBZ
drawn/VBN
a/DT
rationale/NN
from/IN
the/DT
sale/NN
of/IN
a/DT
home/NN
site/NN
split/VBN
in/IN
two/CD
and/CC
sold/VBN
in/IN
different/JJ
years/NNS
to/TO
the/DT
same/JJ
buyer/NN
;/:
a/DT
court/NN
let/VBD
the/DT
seller/NN
in/IN
that/DT
old/JJ
case/NN
treat/VB
this/DT
as/IN
the/DT
sale/NN
of/IN
one/CD
residence/NN
./.
Thus/RB
,/,
the/DT
IRS/NNP
says/VBZ
,/,
the/DT
Blandings/NNP
'/POS
$/$
200,000/CD
loan/NN
is/VBZ
home-acquisition/JJ
debt/NN
,/,
and/CC
interest/NN
on/IN
it/PRP
is/VBZ
fully/RB
deductible/JJ
./.
EARTHQUAKE/NN
VICTIMS/NNS
facing/VBG
imminent/JJ
filing/NN
and/CC
payment/NN
deadlines/NNS
will/MD
get/VB
extensions/NNS
and/CC
penalty/NN
waivers/NNS
like/IN
those/DT
provided/VBN
for/IN
Hugo/NNP
's/POS
victims/NNS
;/:
IRS/NNP
Notice/NNP
89108/CD
has/VBZ
details/NNS
./.
Notice/NNP
89-107/CD
offers/VBZ
added/JJ
relief/NN
for/IN
hurricane-hit/JJ
concerns/NNS
that/WDT
must/MD
file/VB
pension/NN
and/CC
benefit-plan/JJ
returns/NNS
./.
REPORTS/NNS
OF/IN
PAYMENTS/NNS
to/TO
independent/JJ
contractors/NNS
for/IN
services/NNS
must/MD
be/VB
filed/VBN
by/IN
businesses/NNS
,/,
but/CC
do/VBP
n't/RB
bet/VB
that/IN
contractors/NNS
'/POS
unreported/JJ
income/NN
will/MD
be/VB
detected/VBN
that/DT
way/NN
./.
The/DT
General/NNP
Accounting/NNP
Office/NNP
estimates/VBZ
that/IN
50/CD
%/NN
of/IN
IRS/NNP
audits/NN
do/VBP
n't/RB
spot/VB
companies/NNS
that/WDT
fail/VBP
to/TO
file/VB
the/DT
reports/NNS
./.
UH/NNP
HUH/NNP
:/:
A/DT
claim/NN
by/IN
Peter/NNP
Testa/NNP
of/IN
New/NNP
York/NNP
that/IN
a/DT
stranger/NN
paid/VBD
him/PRP
$/$
500/CD
to/TO
go/VB
into/IN
a/DT
bank/NN
and/CC
change/VB
$/$
44,400/CD
in/IN
small/JJ
bills/NNS
into/IN
large/JJ
bills/NNS
``/``
is/VBZ
unconvincing/JJ
,/,
''/''
the/DT
Tax/NNP
Court/NNP
found/VBD
./.
It/PRP
held/VBD
that/IN
Testa/NNP
is/VBZ
taxable/JJ
on/IN
$/$
44,400/CD
of/IN
unreported/JJ
income/NN
./.
WHY/WRB
BE/VB
A/DT
MIDDLEMAN/NN
for/IN
charitable/JJ
gifts/NNS
?/.
a/DT
retiree/NN
asks/VBZ
./.
A/DT
retired/JJ
electrical/JJ
engineer/NN
we/PRP
'll/MD
call/VB
Ben/NNP
works/VBZ
part-time/RB
as/IN
a/DT
consultant/NN
,/,
but/CC
he/PRP
does/VBZ
n't/RB
want/VB
to/TO
earn/VB
so/RB
much/JJ
that/IN
Social/NNP
Security/NNP
reduces/VBZ
his/PRP$
benefits/NNS
./.
So/RB
he/PRP
has/VBZ
arranged/VBN
for/IN
a/DT
university/NN
foundation/NN
to/TO
set/VB
up/RP
a/DT
scholarship/NN
fund/NN
for/IN
undergraduate/JJ
engineering/NN
students/NNS
./.
He/PRP
plans/VBZ
to/TO
tell/VB
clients/NNS
to/TO
pay/VB
certain/JJ
fees/NNS
directly/RB
to/TO
the/DT
foundation/NN
instead/RB
of/IN
to/TO
him/PRP
;/:
he/PRP
would/MD
omit/VB
those/DT
fees/NNS
from/IN
income/NN
reported/VBN
on/IN
his/PRP$
return/NN
./.
So/IN
he/PRP
asked/VBD
the/DT
IRS/NNP
if/IN
the/DT
plan/NN
would/MD
work/VB
./.
Well/RB
,/,
notes/VBZ
IRS/NNP
private/JJ
ruling/NN
8934014/CD
,/,
``/``
a/DT
fundamental/JJ
principle/NN
''/''
is/VBZ
that/DT
income/NN
must/MD
be/VB
taxed/VBN
to/TO
whoever/WP
earns/VBZ
it/PRP
./.
The/DT
rule/NN
goes/VBZ
back/RB
at/IN
least/JJS
as/RB
far/RB
as/IN
a/DT
1930/CD
Supreme/NNP
Court/NNP
decision/NN
,/,
Robert/NNP
Willens/NNP
of/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
says/VBZ
./.
If/IN
you/PRP
assign/VBP
your/PRP$
income/NN
to/TO
another/DT
,/,
you/PRP
still/RB
have/VB
controlled/VBN
its/PRP$
disposition/NN
and/CC
enjoyed/VBN
the/DT
fruits/NNS
of/IN
your/PRP$
labor/NN
,/,
even/RB
if/IN
indirectly/RB
./.
Ben/NNP
earns/VBZ
any/DT
fees/NNS
sent/VBN
directly/RB
to/TO
charity/NN
and/CC
is/VBZ
taxable/JJ
on/IN
them/PRP
,/,
the/DT
IRS/NNP
says/VBZ
;/:
of/IN
course/NN
,/,
he/PRP
also/RB
may/MD
take/VB
a/DT
charitable/JJ
deduction/NN
for/IN
them/PRP
./.
BRIEFS/NNS
:/:
Ways/NNP
and/CC
Means/NNP
veteran/NN
Gephardt/NNP
D./NNP
,/,
Mo/NNP
./.
the/DT
House/NNP
Budget/NNP
Committee/NNP
;/:
Rep./NNP
Cardin/NNP
D./NNP
,/,
Md/NNP
./.
him/PRP
.../:
./.
Seattle/NNP
's/POS
license/NN
fees/NNS
for/IN
adult/JJ
peep/NN
shows/NNS
vary/VBP
from/IN
those/DT
for/IN
other/JJ
coin-operated/JJ
amusements/NNS
without/IN
serving/VBG
a/DT
substantial/JJ
government/NN
interest/NN
and/CC
are/VBP
unconstitutional/JJ
,/,
the/DT
ninth-circuit/JJ
appeals/NNS
court/NN
holds/VBZ
for/IN
Acorn/NNP
Investments/NNP
Inc/NNP
./.
Blue-chip/JJ
advertisers/NNS
have/VBP
plenty/NN
of/IN
complaints/NNS
about/IN
the/DT
magazines/NNS
they/PRP
advertise/VBP
in/IN
,/,
ranging/VBG
from/IN
inadequate/JJ
consumer/NN
research/NN
to/TO
ad/NN
``/``
clutter/NN
''/''
and/CC
a/DT
seemingly/RB
unchecked/JJ
proliferation/NN
of/IN
special/JJ
interest/NN
magazines/NNS
./.
Criticism/NN
from/IN
such/JJ
big/JJ
advertisers/NNS
as/IN
Estee/NNP
Lauder/NNP
Inc./NNP
,/,
Colgate-Palmolive/NNP
Co./NNP
and/CC
Seagram/NNP
Co./NNP
put/VBD
a/DT
damper/NN
on/IN
the/DT
euphoria/NN
at/IN
the/DT
American/NNP
Magazine/NNP
Conference/NNP
here/RB
./.
The/DT
conference/NN
opened/VBD
Monday/NNP
with/IN
glowing/JJ
reports/NNS
about/IN
consumer/NN
magazines/NNS
'/POS
growth/NN
in/IN
circulation/NN
and/CC
advertising/NN
revenue/NN
in/IN
the/DT
past/JJ
year/NN
./.
``/``
Magazines/NNS
are/VBP
not/RB
providing/VBG
us/PRP
in-depth/JJ
information/NN
on/IN
circulation/NN
,/,
''/''
said/VBD
Edgar/NNP
Bronfman/NNP
Jr./NNP
,/,
president/NN
and/CC
chief/NN
operating/NN
officer/NN
of/IN
Seagram/NNP
,/,
in/IN
a/DT
panel/NN
discussion/NN
./.
``/``
How/WRB
do/VBP
readers/NNS
feel/VB
about/IN
the/DT
magazine/NN
?/.
How/WRB
deeply/RB
do/VBP
they/PRP
read/VB
it/PRP
?/.
Research/NN
does/VBZ
n't/RB
tell/VB
us/PRP
whether/IN
people/NNS
actually/RB
do/VBP
read/VB
the/DT
magazines/NNS
they/PRP
subscribe/VBP
to/TO
./.
''/''
Reuben/NNP
Mark/NNP
,/,
chief/JJ
executive/NN
of/IN
Colgate-Palmolive/NNP
,/,
said/VBD
advertisers/NNS
lack/VBP
detailed/JJ
demographic/JJ
and/CC
geographic/JJ
breakdowns/NNS
of/IN
magazines/NNS
'/POS
audiences/NNS
./.
``/``
We/PRP
need/VBP
research/NN
that/WDT
convinces/VBZ
us/PRP
that/IN
magazines/NNS
are/VBP
a/DT
real/JJ
value/NN
in/IN
reader/NN
's/POS
lives/NNS
,/,
that/IN
readers/NNS
are/VBP
really/RB
involved/JJ
./.
''/''
The/DT
critics/NNS
also/RB
lambasted/VBD
the/DT
magazine/NN
industry/NN
for/IN
something/NN
executives/NNS
often/RB
are/VBP
very/RB
proud/JJ
of/IN
:/:
the/DT
growth/NN
in/IN
magazine/NN
titles/NNS
during/IN
the/DT
1980s/CD
./.
Leonard/NNP
Lauder/NNP
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
Estee/NNP
Lauder/NNP
,/,
said/VBD
consumer/NN
magazines/NNS
are/VBP
suffering/VBG
from/IN
what/WP
he/PRP
called/VBD
``/``
niche-itis/NN
,/,
''/''
the/DT
increasing/JJ
number/NN
of/IN
magazines/NNS
that/WDT
target/VBP
the/DT
idosyncratic/JJ
interests/NNS
of/IN
readers/NNS
./.
``/``
Niche-itis/NN
fragments/VBZ
our/PRP$
advertising/NN
dollars/NNS
,/,
''/''
said/VBD
Mr./NNP
Lauder/NNP
./.
``/``
We/PRP
are/VBP
being/VBG
over-magazined/VBN
./.
We/PRP
are/VBP
constantly/RB
faced/VBN
with/IN
deciding/VBG
which/WDT
partnerships/NNS
magazines/NNS
we/PRP
can/MD
keep/VB
./.
''/''
He/PRP
added/VBD
:/:
``/``
There/EX
's/VBZ
probably/RB
even/RB
a/DT
magazine/NN
for/IN
left-handed/JJ
golfers/NNS
.../:
but/CC
the/DT
general/JJ
interest/NN
magazine/NN
is/VBZ
something/NN
we/PRP
all/DT
miss/VBP
,/,
and/CC
it/PRP
should/MD
come/VB
back/RP
./.
''/''
Mr./NNP
Lauder/NNP
also/RB
attacked/VBD
what/WP
he/PRP
sees/VBZ
as/IN
the/DT
wide/JJ
imitation/NN
of/IN
Elle/NNP
,/,
a/DT
fashion/NN
magazine/NN
published/VBN
by/IN
Diamandis/NNP
Communications/NNP
Inc./NNP
,/,
and/CC
criticized/VBD
the/DT
practice/NN
of/IN
stacking/VBG
ads/NNS
at/IN
the/DT
front/NN
of/IN
magazines/NNS
./.
``/``
Readers/NNS
do/VBP
n't/RB
want/VB
to/TO
face/VB
all/PDT
those/DT
ad/NN
pages/NNS
at/IN
the/DT
front/NN
of/IN
a/DT
magazine/NN
,/,
''/''
he/PRP
said/VBD
./.
Magazine/NN
editors/NNS
did/VBD
not/RB
take/VB
the/DT
criticisms/NNS
lying/VBG
down/RP
./.
``/``
We/PRP
spend/VBP
a/DT
fortune/NN
on/IN
research/NN
information/NN
,/,
''/''
said/VBD
Steve/NNP
Burzon/NNP
,/,
publisher/NN
of/IN
Meredith/NNP
Corp./NNP
's/POS
Metropolitan/NNP
Home/NNP
./.
And/CC
Tina/NNP
Brown/NNP
,/,
editor/NN
of/IN
Conde/NNP
Nast/NNP
Publications/NNP
Inc./NNP
's/POS
Vanity/NNP
Fair/NNP
,/,
said/VBD
advertisers/NNS
are/VBP
frequently/RB
asked/VBN
to/TO
take/VB
advertising/NN
positions/NNS
in/IN
the/DT
back/NN
of/IN
her/PRP$
magazine/NN
to/TO
relieve/VB
ad/NN
clutter/NN
./.
``/``
But/CC
advertisers/NNS
would/MD
n't/RB
think/VB
of/IN
it/PRP
,/,
''/''
she/PRP
said/VBD
./.
Bernard/NNP
Leser/NNP
,/,
president/NN
of/IN
Conde/NNP
Nast/NNP
,/,
added/VBD
:/:
``/``
Our/PRP$
research/NN
shows/VBZ
we/PRP
sell/VBP
more/JJR
of/IN
our/PRP$
heavier/JJR
issues/NNS
.../:
because/IN
readers/NNS
believe/VBP
they/PRP
are/VBP
getting/VBG
more/JJR
for/IN
what/WP
they/PRP
pay/VBP
for/IN
./.
''/''
Wall/NNP
Street/NNP
securities/NNS
giant/NN
Salomon/NNP
Inc./NNP
posted/VBD
a/DT
big/JJ
,/,
unexpected/JJ
earnings/NNS
gain/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
buoyed/VBN
by/IN
its/PRP$
securities/NNS
trading/NN
and/CC
investment/NN
banking/NN
activities/NNS
./.
Salomon/NNP
said/VBD
net/JJ
income/NN
soared/VBD
to/TO
$/$
177/CD
million/CD
,/,
or/CC
$/$
1.28/CD
a/DT
share/NN
,/,
from/IN
$/$
65/CD
million/CD
,/,
or/CC
38/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Revenue/NN
more/RBR
than/IN|RB
doubled/VBD
to/TO
$/$
2.62/CD
billion/CD
from/IN
$/$
1.29/CD
billion/CD
./.
A/DT
Salomon/NNP
spokesman/NN
said/VBD
its/PRP$
stock/NN
,/,
bond/NN
and/CC
foreign/JJ
exchange/NN
trading/NN
,/,
as/RB
well/RB
as/IN
its/PRP$
investment/NN
banking/NN
operations/NNS
,/,
were/VBD
mostly/RB
responsible/JJ
for/IN
the/DT
earnings/NNS
jump/NN
./.
``/``
The/DT
earnings/NNS
were/VBD
fine/JJ
and/CC
above/JJ
expectations/NNS
,/,
''/''
said/VBD
Michael/NNP
W./NNP
Blumstein/NNP
,/,
an/DT
analyst/NN
at/IN
First/NNP
Boston/NNP
Corp/NNP
./.
Nevertheless/RB
,/,
Salomon/NNP
's/POS
stock/NN
fell/VBD
$/$
1.125/CD
yesterday/NN
to/TO
close/VB
at/IN
$/$
23.25/CD
a/DT
share/NN
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
``/``
I/PRP
suspect/VBP
October/NNP
was/VBD
n't/RB
as/RB
good/JJ
as/IN
the/DT
third/JJ
quarter/NN
,/,
and/CC
they/PRP
'll/MD
have/VB
difficulty/NN
matching/VBG
the/DT
third/JJ
quarter/NN
in/IN
the/DT
fourth/JJ
quarter/NN
,/,
''/''
Mr./NNP
Blumstein/NNP
said/VBD
./.
But/CC
some/DT
analysts/NNS
say/VBP
Salomon/NN
has/VBZ
turned/VBN
the/DT
corner/NN
./.
``/``
I/PRP
upgraded/VBD
the/DT
firm/NN
to/TO
my/PRP$
buy/JJ
list/NN
because/IN
I/PRP
certainly/RB
see/VBP
signs/NNS
of/IN
improvement/NN
,/,
''/''
says/VBZ
Lawrence/NNP
Eckenfelder/NNP
,/,
an/DT
analyst/NN
at/IN
Prudential-Bache/NNP
Securities/NNP
./.
``/``
The/DT
market/NN
has/VBZ
been/VBN
overly/RB
harsh/JJ
to/TO
them/PRP
./.
''/''
Analysts/NNS
say/VBP
investors/NNS
remain/VBP
skittish/JJ
toward/IN
Salomon/NNP
because/IN
of/IN
its/PRP$
volatile/JJ
earnings/NNS
./.
In/IN
the/DT
first/JJ
quarter/NN
,/,
Salomon/NNP
had/VBD
a/DT
record/JJ
loss/NN
of/IN
$/$
28/CD
million/CD
on/IN
revenue/NN
of/IN
$/$
1.54/CD
billion/CD
./.
But/CC
in/IN
the/DT
second/JJ
quarter/NN
,/,
Salomon/NNP
posted/VBD
a/DT
record/JJ
$/$
253/CD
million/CD
net/NN
on/IN
revenue/NN
of/IN
$/$
2.33/CD
billion/CD
./.
For/IN
the/DT
real/JJ
estate/NN
industry/NN
,/,
a/DT
watchword/NN
for/IN
the/DT
1990s/CD
will/MD
be/VB
buy/VB
,/,
more/RBR
than/IN|RB
build/VB
./.
That/DT
's/VBZ
the/DT
word/NN
expected/VBN
to/TO
be/VB
on/IN
the/DT
lips/NNS
of/IN
the/DT
more/JJR
than/IN
3,000/CD
developers/NNS
,/,
pension-fund/NN
advisers/NNS
and/CC
real/JJ
estate/NN
financiers/NNS
slated/VBN
to/TO
attend/VB
a/DT
four-day/JJ
conference/NN
,/,
beginning/VBG
here/RB
today/NN
,/,
sponsored/VBN
by/IN
the/DT
Urban/NNP
Land/NNP
Institute/NNP
./.
The/DT
ULI/NNP
is/VBZ
a/DT
non-profit/JJ
research/NN
and/CC
education/NN
group/NN
based/VBN
in/IN
Washington/NNP
,/,
D.C./NNP
,/,
with/IN
14,000/CD
members/NNS
nationwide/RB
./.
With/IN
the/DT
market/NN
overbuilt/JJ
,/,
builders/NNS
are/VBP
finding/VBG
limited/JJ
opportunities/NNS
and/CC
increased/JJ
risks/NNS
./.
Developers/NNS
and/CC
money/NN
managers/NNS
are/VBP
looking/VBG
for/IN
bargains/NNS
among/IN
the/DT
thousands/NNS
of/IN
financially/RB
troubled/JJ
properties/NNS
around/IN
the/DT
country/NN
./.
Real/JJ
estate/NN
professionals/NNS
now/RB
often/RB
bill/VBP
themselves/PRP
as/IN
``/``
turnaround/NN
experts/NNS
''/''
and/CC
``/``
workout/NN
specialists/NNS
./.
''/''
Conference/NN
attendees/NNS
are/VBP
expected/VBN
to/TO
be/VB
buzzing/VBG
about/IN
the/DT
workings/NNS
of/IN
the/DT
recently/RB
formed/VBN
Resolution/NNP
Trust/NNP
Corp./NNP
,/,
a/DT
federal/JJ
agency/NN
charged/VBN
with/IN
disposing/VBG
of/IN
an/DT
estimated/JJ
$/$
200/CD
billion/CD
of/IN
real/JJ
estate/NN
dumped/VBN
in/IN
government/NN
hands/NNS
by/IN
insolvent/JJ
savings/NNS
and/CC
loans/NNS
./.
Developers/NNS
are/VBP
also/RB
eyeing/VBG
the/DT
real/JJ
estate/NN
portfolios/NNS
of/IN
major/JJ
corporations/NNS
./.
Some/DT
plan/VBP
to/TO
pursue/VB
foreign/JJ
development/NN
ventures/NNS
,/,
mostly/RB
in/IN
Europe/NNP
./.
And/CC
other/JJ
developers/NNS
may/MD
shift/VB
from/IN
commercial/JJ
to/TO
residential/JJ
development/NN
in/IN
the/DT
U.S/NNP
./.
``/``
There/EX
are/VBP
n't/RB
as/RB
many/JJ
economically/RB
viable/JJ
alternatives/NNS
for/IN
real/JJ
estate/NN
developers/NNS
in/IN
this/DT
country/NN
as/IN
10/CD
years/NNS
ago/RB
,/,
''/''
says/VBZ
Charles/NNP
Shaw/NNP
,/,
a/DT
Chicago-based/JJ
real/JJ
estate/NN
developer/NN
./.
``/``
So/IN
developers/NNS
are/VBP
saying/VBG
they/PRP
will/MD
look/VB
into/IN
distressed/JJ
properties/NNS
./.
They/PRP
'll/MD
go/VB
into/IN
someone/NN
else/RB
's/POS
pasture/NN
as/RB
long/RB
as/IN
it/PRP
's/VBZ
greener/JJR
than/IN
the/DT
one/NN
they/PRP
're/VBP
in/IN
now/RB
./.
''/''
Developers/NNP
are/VBP
also/RB
forming/VBG
more/RBR
joint/JJ
ventures/NNS
with/IN
pension/NN
funds/NNS
and/CC
insurance/NN
companies/NNS
that/WDT
can/MD
finance/VB
big/JJ
projects/NNS
./.
The/DT
builders/NNS
are/VBP
more/RBR
willing/JJ
to/TO
give/VB
up/RP
some/DT
equity/NN
and/CC
rely/VB
on/IN
management/NN
and/CC
consulting/NN
fees/NNS
to/TO
stay/VB
afloat/RB
in/IN
the/DT
soft/JJ
market/NN
./.
``/``
Developers/NNP
are/VBP
teaming/VBG
up/RP
with/IN
institutions/NNS
often/RB
acting/VBG
as/IN
project/NN
managers/NNS
,/,
''/''
says/VBZ
Smedes/NNP
York/NNP
,/,
ULI/NNP
president/NN
and/CC
president/NN
of/IN
York/NNP
Properties/NNP
Inc./NNP
,/,
of/IN
Raleigh/NNP
,/,
N.C/NNP
./.
``/``
They/PRP
are/VBP
growing/VBG
more/RBR
pragmatic/JJ
about/IN
their/PRP$
role/NN
./.
''/''
Real/JJ
estate/NN
firms/NNS
are/VBP
also/RB
using/VBG
their/PRP$
alliances/NNS
with/IN
financial/JJ
institutions/NNS
to/TO
amass/VB
acquisition/NN
funds/NNS
./.
``/``
Why/WRB
should/MD
you/PRP
beat/VB
your/PRP$
brains/NNS
out/RP
fighting/VBG
the/DT
environmentalists/NNS
,/,
the/DT
neighborhood/NN
groups/NNS
,/,
dealing/VBG
with/IN
traffic/NN
mitigation/NN
,/,
sewers/NNS
and/CC
fighting/VBG
city/NN
hall/NN
,/,
then/RB
try/VB
to/TO
convince/VB
a/DT
lender/NN
to/TO
lend/VB
you/PRP
money/NN
in/IN
an/DT
overbuilt/JJ
market/NN
when/WRB
you/PRP
can/MD
get/VB
pension/NN
fund/NN
money/NN
,/,
buy/VB
a/DT
portfolio/NN
,/,
sell/VB
off/RP
pieces/NNS
off/IN
it/PRP
and/CC
play/VB
your/PRP$
own/JJ
game/NN
?/.
''/''
says/VBZ
Jack/NNP
Rodman/NNP
,/,
managing/NN
partner/NN
of/IN
the/DT
Los/NNP
Angeles/NNP
office/NN
of/IN
Kenneth/NNP
Leventhal/NNP
Inc./NNP
a/DT
national/JJ
accounting/NN
firm/NN
./.
But/CC
experts/NNS
say/VBP
that/IN
when/WRB
it/PRP
comes/VBZ
to/TO
distressed/JJ
properties/NNS
,/,
finding/VBG
diamonds/NNS
in/IN
the/DT
rough/JJ
is/VBZ
n't/RB
easy/JJ
./.
The/DT
level/NN
of/IN
interest/NN
in/IN
the/DT
RTC/NNP
's/POS
properties/NNS
has/VBZ
been/VBN
greater/JJR
than/IN
expected/VBN
,/,
and/CC
has/VBZ
come/VBN
from/IN
larger/JJR
companies/NNS
than/IN
initially/RB
anticipated/VBN
,/,
says/VBZ
Stan/NNP
Ross/NNP
,/,
Leventhal/NNP
's/POS
co-managing/JJ
partner/NN
./.
And/CC
to/TO
succeed/VB
in/IN
the/DT
turnaround/NN
business/NN
,/,
he/PRP
says/VBZ
,/,
developers/NNS
may/MD
have/VB
to/TO
put/VB
in/RP
a/DT
lot/NN
of/IN
money/NN
and/CC
time/NN
./.
Finding/VBG
pension/NN
funds/NNS
and/CC
other/JJ
sources/NNS
willing/JJ
to/TO
invest/VB
is/VBZ
a/DT
high/JJ
priority/NN
./.
Quips/VBZ
David/NNP
Shulman/NNP
,/,
director/NN
of/IN
real/JJ
estate/NN
research/NN
for/IN
Salomon/NNP
Brothers/NNP
Inc./NNP
:/:
``/``
A/DT
theme/NN
of/IN
the/DT
Urban/NNP
Land/NNP
conference/NN
will/MD
be/VB
`/``
take/VB
a/DT
pension/NN
fund/NN
manager/NN
to/TO
lunch/NN
./.
'/''
''/''
Sheraton/NNP
Corp./NNP
and/CC
Pan/NNP
American/NNP
World/NNP
Airways/NNP
announced/VBD
that/IN
they/PRP
and/CC
two/CD
Soviet/JJ
partners/NNS
will/MD
construct/VB
two/CD
``/``
world-class/JJ
''/''
hotels/NNS
within/IN
a/DT
mile/NN
of/IN
Red/NNP
Square/NNP
in/IN
Moscow/NNP
./.
U.S./NNP
and/CC
Soviet/NNP
officials/NNS
hailed/VBD
the/DT
joint/JJ
project/NN
as/IN
a/DT
new/JJ
indication/NN
of/IN
the/DT
further/JJ
thaw/NN
in/IN
U.S.-Soviet/JJ
relations/NNS
./.
``/``
This/DT
is/VBZ
an/DT
outstanding/JJ
example/NN
of/IN
how/WRB
the/DT
East/NNP
and/CC
the/DT
West/NNP
can/MD
work/VB
together/RB
for/IN
their/PRP$
mutual/JJ
benefit/NN
and/CC
progress/NN
,/,
''/''
said/VBD
Soviet/NNP
Ambassador/NNP
Yuri/NNP
Dubinin/NNP
,/,
who/WP
hosted/VBD
a/DT
signing/NN
ceremony/NN
for/IN
the/DT
venture/NN
's/POS
partners/NNS
at/IN
the/DT
Soviet/JJ
embassy/NN
here/RB
./.
Commerce/NNP
Secretary/NNP
Robert/NNP
Mosbacher/NNP
,/,
who/WP
attended/VBD
the/DT
ceremony/NN
,/,
called/VBD
the/DT
undertaking/NN
a/DT
``/``
historic/JJ
step/NN
''/''
in/IN
the/DT
evolution/NN
of/IN
U.S.-Soviet/JJ
ties/NNS
./.
He/PRP
added/VBD
that/IN
it/PRP
likely/RB
will/MD
have/VB
a/DT
``/``
mulitiplier/JJ
effect/NN
''/''
in/IN
stimulating/VBG
further/JJ
trade/NN
between/IN
the/DT
two/CD
countries/NNS
./.
The/DT
project/NN
will/MD
be/VB
the/DT
largest/JJS
U.S.-backed/JJ
joint/JJ
venture/NN
to/TO
be/VB
undertaken/VBN
in/IN
the/DT
Soviet/NNP
Union/NNP
in/IN
recent/JJ
years/NNS
./.
One/CD
of/IN
the/DT
hotels/NNS
,/,
to/TO
be/VB
called/VBN
the/DT
Sheraton/NNP
Moscow/NNP
,/,
will/MD
have/VB
450/CD
rooms/NNS
and/CC
will/MD
cost/VB
an/DT
estimated/JJ
$/$
75/CD
million/CD
to/TO
build/VB
./.
The/DT
six-story/JJ
hotel/NN
will/MD
be/VB
on/IN
Gorky/NNP
Street/NNP
and/CC
initially/RB
will/MD
cater/VB
mostly/RB
to/TO
business/NN
travelers/NNS
./.
It/PRP
will/MD
have/VB
a/DT
Russian/JJ
tavern/NN
,/,
an/DT
English/JJ
pub/NN
,/,
a/DT
discotheque/NN
and/CC
Japanese/JJ
and/CC
Italian/JJ
restaurants/NNS
,/,
according/VBG
to/TO
a/DT
Sheraton/NNP
announcement/NN
./.
The/DT
hotel/NN
is/VBZ
scheduled/VBN
to/TO
open/VB
in/IN
1992/CD
./.
The/DT
second/JJ
hotel/NN
,/,
to/TO
be/VB
called/VBN
the/DT
Budapest/NNP
Hotel/NNP
,/,
is/VBZ
to/TO
be/VB
constructed/VBN
at/IN
a/DT
site/NN
even/RB
closer/RBR
to/TO
Red/NNP
Square/NNP
./.
Details/NNS
about/IN
its/PRP$
size/NN
and/CC
cost/NN
have/VBP
n't/RB
yet/RB
been/VBN
determined/VBN
./.
Sheraton/NNP
,/,
a/DT
subsidiary/NN
of/IN
ITT/NNP
Corp./NNP
,/,
will/MD
have/VB
a/DT
40/CD
%/NN
share/NN
in/IN
the/DT
two/CD
hotels/NNS
;/:
Pan/NNP
American/NNP
,/,
a/DT
subsidiary/NN
of/IN
Pan/NNP
Am/NNP
Corp./NNP
,/,
will/MD
have/VB
a/DT
10/CD
%/NN
share/NN
./.
The/DT
Soviet/JJ
owners/NNS
will/MD
be/VB
Mossoviet/NNP
,/,
Moscow/NNP
's/POS
city/NN
governing/NN
body/NN
,/,
and/CC
Aeroflot/NNP
,/,
the/DT
Soviet/JJ
national/JJ
airline/NN
./.
Although/IN
a/DT
Finnish/JJ
group/NN
has/VBZ
a/DT
minority/NN
interest/NN
in/IN
an/DT
already/RB
operating/VBG
Moscow/NNP
hotel/NN
,/,
the/DT
Sheraton-Pan/NNP
Am/NNP
venture/NN
will/MD
be/VB
the/DT
first/JJ
joint-venture/JJ
hotels/NNS
in/IN
the/DT
Soviet/NNP
Union/NNP
to/TO
have/VB
as/RB
much/JJ
as/IN
50/CD
%/NN
foreign/JJ
ownership/NN
./.
U.S./NNP
companies/NNS
account/VBP
for/IN
less/JJR
than/IN
8/CD
%/NN
of/IN
the/DT
1,000/CD
or/CC
more/JJR
Soviet/JJ
joint/NN
ventures/NNS
that/WDT
have/VBP
been/VBN
announced/VBN
since/IN
the/DT
Soviets/NNPS
began/VBD
encouraging/JJ
such/JJ
undertakings/NNS
in/IN
1987/CD
./.
But/CC
some/DT
U.S./NNP
companies/NNS
are/VBP
negotiating/VBG
projects/NNS
that/WDT
could/MD
be/VB
among/IN
the/DT
biggest/JJS
ones/NNS
to/TO
be/VB
launched/VBN
./.
Chevron/NNP
Corp./NNP
,/,
Amoco/NNP
Corp./NNP
,/,
Archer-Daniels-Midland/NNP
Co./NNP
,/,
and/CC
Eastman/NNP
Kodak/NNP
Co./NNP
are/VBP
among/IN
the/DT
U.S./NNP
companies/NNS
known/VBN
to/TO
be/VB
considering/VBG
such/JJ
ventures/NNS
./.
Sheraton/NNP
and/CC
Pan/NNP
Am/NNP
said/VBD
they/PRP
are/VBP
assured/VBN
under/IN
the/DT
Soviet/JJ
joint-venture/JJ
law/NN
that/IN
they/PRP
can/MD
repatriate/VB
profits/NNS
from/IN
their/PRP$
hotel/NN
venture/NN
./.
The/DT
Sheraton/NNP
Moscow/NNP
will/MD
charge/VB
about/RB
$/$
140/CD
to/TO
$/$
150/CD
a/DT
day/NN
for/IN
each/DT
of/IN
its/PRP$
rooms/NNS
,/,
and/CC
it/PRP
will/MD
accept/VB
payment/NN
only/RB
in/IN
currencies/NNS
that/WDT
can/MD
be/VB
traded/VBN
in/IN
foreign/JJ
exchange/NN
markets/NNS
,/,
according/VBG
to/TO
a/DT
Sheraton/NNP
executive/NN
./.
Thomas/NNP
Plaskett/NNP
,/,
Pan/NNP
Am/VBP
's/POS
chairman/NN
,/,
said/VBD
the/DT
U.S./NNP
airline/NN
's/POS
participation/NN
is/VBZ
a/DT
natural/JJ
outgrowth/NN
of/IN
its/PRP$
current/JJ
arrangements/NNS
with/IN
Aeroflot/NNP
to/TO
jointly/RB
operate/VB
nonstop/JJ
New/NNP
York-Moscow/NNP
flights/NNS
./.
He/PRP
said/VBD
the/DT
rising/VBG
volume/NN
of/IN
passenger/NN
traffic/NN
on/IN
this/DT
route/NN
justifies/VBZ
a/DT
major/JJ
investment/NN
in/IN
new/JJ
high-standard/JJ
Moscow/NNP
hotels/NNS
./.
David/NNP
Shaffer/NNP
was/VBD
named/VBN
to/TO
the/DT
new/JJ
post/NN
of/IN
executive/JJ
vice/NN
president/NN
of/IN
the/DT
Maxwell/NNP
Macmillan/NNP
group/NN
of/IN
this/DT
communications/NN
giant/NN
./.
Mr./NNP
Shaffer/NNP
takes/VBZ
primary/JJ
responsibility/NN
for/IN
the/DT
electronic/JJ
and/CC
technical-services/NNS
group/NN
./.
He/PRP
had/VBD
been/VBN
group/NN
vice/NN
president/NN
of/IN
the/DT
electronic-publishing/JJ
group/NN
./.
Also/RB
,/,
Sheldon/NNP
Aboff/NNP
,/,
formerly/RB
a/DT
vice/NN
president/NN
at/IN
Maxwell/NNP
,/,
was/VBD
named/VBN
group/NN
vice/NN
president/NN
with/IN
responsibility/NN
for/IN
various/JJ
electronic/JJ
and/CC
publishing-group/JJ
companies/NNS
./.
Soichiro/NNP
Honda/NNP
's/POS
picture/NN
now/RB
hangs/VBZ
with/IN
Henry/NNP
Ford/NNP
's/VBZ
in/IN
the/DT
U.S./NNP
Automotive/NNP
Hall/NNP
of/IN
Fame/NNP
,/,
and/CC
the/DT
game-show/NN
``/``
Jeopardy/NNP
''/''
is/VBZ
soon/RB
to/TO
be/VB
Sony-owned/JJ
./.
But/CC
no/DT
matter/NN
how/WRB
much/RB
Japan/NNP
gets/VBZ
under/IN
our/PRP$
skin/NN
,/,
we/PRP
'll/MD
still/RB
have/VB
mom/NN
and/CC
apple/NN
pie/NN
./.
On/IN
second/JJ
thought/NN
,/,
make/VB
that/DT
just/RB
mom/NN
./.
A/DT
Japanese/JJ
apple/NN
called/VBD
the/DT
Fuji/NNP
is/VBZ
cropping/VBG
up/RP
in/IN
orchards/NNS
the/DT
way/NN
Hondas/NNPS
did/VBD
on/IN
U.S./NNP
roads/NNS
./.
By/IN
1995/CD
it/PRP
will/MD
be/VB
planted/VBN
more/RBR
often/RB
than/IN
any/DT
other/JJ
apple/NN
tree/NN
,/,
according/VBG
to/TO
a/DT
recent/JJ
survey/NN
of/IN
six/CD
apple-industry/NN
sages/NNS
by/IN
Washington/NNP
State/NNP
University/NNP
horticulturist/NN
Robert/NNP
Norton/NNP
./.
Some/DT
fruit/NN
visionaries/NNS
say/VBP
the/DT
Fuji/NNP
could/MD
someday/RB
tumble/VB
the/DT
Red/NNP
Delicious/NNP
from/IN
the/DT
top/NN
of/IN
America/NNP
's/POS
apple/NN
heap/NN
./.
It/PRP
certainly/RB
wo/MD
n't/RB
get/VB
there/RB
on/IN
looks/NNS
./.
Compared/VBN
to/TO
the/DT
Red/NNP
Delicious/NNP
,/,
the/DT
exemplar/NN
of/IN
apple/NN
pulchritude/NN
,/,
the/DT
Fuji/NNS
is/VBZ
decidedly/RB
more/RBR
dowdy/JJ
--/:
generally/RB
smaller/JJR
,/,
less-perfectly/RBR
shaped/JJ
,/,
greenish/JJ
,/,
with/IN
tinges/NNS
of/IN
red/NN
./.
To/TO
hear/VB
most/JJS
U.S./NNP
growers/NNS
tell/VBP
it/PRP
,/,
we/PRP
'd/MD
still/RB
be/VB
in/IN
Paradise/NNP
if/IN
the/DT
serpent/NN
had/VBD
proffered/VBN
one/CD
to/TO
Eve/NNP
./.
But/CC
how/WRB
sweet/JJ
it/PRP
is/VBZ
./.
It/PRP
has/VBZ
more/JJR
sugar/NN
``/``
than/IN
any/DT
apple/NN
we/PRP
've/VBP
ever/RB
tested/VBN
,/,
''/''
says/VBZ
Duane/NNP
Greene/NNP
,/,
a/DT
University/NNP
of/IN
Massachusetts/NNP
pomologist/NN
,/,
or/CC
apple/NN
scholar/NN
./.
It/PRP
has/VBZ
a/DT
long/JJ
shelf/NN
life/NN
and/CC
``/``
does/VBZ
n't/RB
fool/VB
the/DT
public/NN
,/,
''/''
says/VBZ
Grady/NNP
Auvil/NNP
,/,
an/DT
Orondo/NNP
,/,
Wash./NNP
,/,
grower/NN
who/WP
is/VBZ
planting/VBG
Fujis/NNPS
and/CC
spreading/VBG
the/DT
good/JJ
word/NN
about/IN
them/PRP
./.
``/``
It/PRP
does/VBZ
n't/RB
look/VB
nice/JJ
on/IN
the/DT
outside/NN
while/IN
getting/VBG
mealy/JJ
inside/RB
./.
''/''
Mr./NNP
Auvil/NNP
,/,
razor/NN
sharp/JJ
at/IN
83/CD
,/,
has/VBZ
picked/VBN
and/CC
packed/VBN
a/DT
zillion/NN|CD
pecks/NNS
of/IN
apples/NNS
over/IN
the/DT
past/JJ
65/CD
years/NNS
./.
He/PRP
is/VBZ
known/VBN
as/IN
the/DT
father/NN
of/IN
the/DT
U.S.-grown/JJ
Granny/NNP
Smith/NNP
,/,
a/DT
radically/RB
different/JJ
apple/NN
that/IN
the/DT
conventional/JJ
wisdom/NN
once/RB
said/VBD
would/MD
never/RB
catch/VB
on/RP
./.
It/PRP
did/VBD
,/,
shaking/VBG
the/DT
apple/NN
establishment/NN
to/TO
its/PRP$
roots/NNS
./.
Now/RB
,/,
even/RB
more/RBR
radical/JJ
changes/NNS
seem/VBP
afoot/RB
as/IN
the/DT
grand/JJ
old/JJ
maverick/NN
of/IN
American/JJ
apples/NNS
plays/VBZ
the/DT
role/NN
of/IN
Hiroshi/NNP
Appleseed/NNP
./.
``/``
The/DT
Fuji/NNP
is/VBZ
going/VBG
to/TO
be/VB
No./NN
1/CD
to/TO
replace/VB
the/DT
Red/NNP
Delicious/NNP
,/,
''/''
he/PRP
says/VBZ
./.
The/DT
Delicious/NNP
hegemony/NN
wo/MD
n't/RB
end/VB
anytime/RB
soon/RB
./.
New/JJ
apple/NN
trees/NNS
grow/VBP
slowly/RB
,/,
and/CC
the/DT
Red/NNP
Delicious/NNP
is/VBZ
almost/RB
as/RB
entrenched/JJ
as/IN
mom/NN
./.
Its/PRP$
roots/NNS
are/VBP
patriotic/JJ
--/:
with/IN
the/DT
first/JJ
trees/NNS
appearing/VBG
in/IN
1872/CD
in/IN
an/DT
orchard/NN
near/IN
Peru/NNP
,/,
Iowa/NNP
,/,
to/TO
be/VB
exact/JJ
./.
For/IN
more/JJR
than/IN
50/CD
years/NNS
,/,
it/PRP
has/VBZ
been/VBN
the/DT
apple/NN
of/IN
our/PRP$
eye/NN
./.
A/DT
good/JJ
Delicious/NNP
can/MD
indeed/RB
be/VB
delicious/JJ
./.
More/JJR
than/IN
twice/RB
as/IN
many/JJ
Red/NNP
Delicious/NNP
apples/NNS
are/VBP
grown/VBN
as/IN
the/DT
Golden/NNP
variety/NN
,/,
America/NNP
's/POS
No./NN
2/CD
apple/NN
./.
But/CC
the/DT
apple/NN
industry/NN
is/VBZ
ripe/JJ
for/IN
change/NN
./.
``/``
Red/NNP
Delicious/NNP
has/VBZ
been/VBN
overplanted/VBN
,/,
and/CC
its/PRP$
prices/NNS
have/VBP
dropped/VBN
below/IN
the/DT
cost/NN
of/IN
production/NN
,/,
''/''
says/VBZ
Washington/NNP
State/NNP
's/POS
Mr./NNP
Norton/NNP
./.
The/DT
scare/NN
over/IN
Alar/NNP
,/,
a/DT
growth/NN
regulator/NN
that/WDT
makes/VBZ
apples/NNS
redder/JJR
and/CC
crunchier/JJR
but/CC
may/MD
be/VB
carcinogenic/JJ
,/,
made/VBD
consumers/NNS
shy/VB
away/RP
from/IN
the/DT
Delicious/NNP
,/,
though/IN
they/PRP
were/VBD
less/RBR
affected/JJ
than/IN
the/DT
McIntosh/NNP
./.
The/DT
glut/NN
and/CC
consequent/JJ
lower/JJR
prices/NNS
,/,
combined/VBN
with/IN
cancer/NN
fears/NNS
,/,
was/VBD
a/DT
very/RB
serious/JJ
blow/NN
to/TO
growers/NNS
./.
``/``
A/DT
lot/NN
of/IN
growers/NNS
wo/MD
n't/RB
be/VB
around/RB
in/IN
a/DT
few/JJ
years/NNS
,/,
''/''
says/VBZ
Mr./NNP
Norton/NNP
,/,
although/IN
they/PRP
have/VBP
stopped/VBN
using/VBG
Alar/NNP
./.
One/CD
may/MD
be/VB
William/NNP
Broderick/NNP
,/,
a/DT
Sterling/NNP
,/,
Mass./NNP
,/,
grower/NN
./.
``/``
This/DT
is/VBZ
beautiful/JJ
stuff/NN
,/,
''/''
he/PRP
says/VBZ
,/,
looking/VBG
ruefully/RB
at/IN
big/JJ
boxes/NNS
of/IN
just-picked/JJ
Red/NNP
Delicious/NNP
next/RB
to/TO
his/PRP$
barn/NN
./.
``/``
But/CC
I/PRP
'm/VBP
going/VBG
to/TO
lose/VB
$/$
50,000/CD
to/TO
$/$
60,000/CD
on/IN
it/PRP
./.
I/PRP
'm/VBP
going/VBG
to/TO
have/VB
to/TO
get/VB
another/DT
job/NN
this/DT
year/NN
just/RB
to/TO
eat/VB
./.
''/''
Besides/IN
rotten/JJ
prices/NNS
,/,
he/PRP
has/VBZ
been/VBN
hit/VBN
recently/RB
by/IN
hail/NN
,/,
a/DT
bark-nibbling/JJ
horde/NN
of/IN
mice/NNS
,/,
fungi/NNS
and/CC
bugs/NNS
./.
Some/DT
500/CD
insects/NNS
and/CC
150/CD
diseases/NNS
wiggle/VBP
,/,
chew/VBP
and/CC
romp/VBP
through/IN
growers/NNS
'/POS
nightmares/NNS
,/,
including/VBG
maggots/NNS
,/,
mites/NNS
,/,
mildew/NN
,/,
thrips/NN
,/,
black/JJ
rot/NN
and/CC
the/DT
flat-headed/JJ
borer/NN
./.
Even/RB
if/IN
a/DT
grower/NN
beats/VBZ
them/PRP
back/RP
,/,
his/PRP$
$/$
2,000/CD
rented/VBN
bees/NNS
might/MD
buzz/VB
off/IN
to/TO
the/DT
neighbors/NNS
'/POS
orchards/NNS
instead/RB
of/IN
pollinating/VBG
his/PRP$
,/,
Mr./NNP
Broderick/NNP
says/VBZ
./.
Though/IN
growers/NNS
ca/MD
n't/RB
always/RB
keep/VB
the/DT
worm/NN
from/IN
the/DT
apple/NN
,/,
they/PRP
can/MD
protect/VB
themselves/PRP
against/IN
the/DT
price/NN
vagaries/NNS
of/IN
any/DT
one/CD
variety/NN
by/IN
diversifying/VBG
--/:
into/IN
the/DT
recently/RB
imported/VBN
Gala/NNP
,/,
a/DT
sweet/JJ
New/NNP
Zealand/NNP
native/NN
;/:
the/DT
Esopus/NNP
Spitzenburg/NNP
,/,
reportedly/RB
Thomas/NNP
Jefferson/NNP
's/POS
favorite/JJ
apple/NN
;/:
disease-resistant/JJ
kinds/NNS
like/IN
the/DT
Liberty/NNP
./.
``/``
I/PRP
've/VBP
ripped/VBN
out/RP
a/DT
lot/NN
of/IN
Delicious/NNP
''/''
and/CC
grafted/VBN
the/DT
trees/NNS
with/IN
many/JJ
different/JJ
shoots/NNS
,/,
says/VBZ
Steve/NNP
Wood/NNP
,/,
a/DT
West/NNP
Lebanon/NNP
,/,
N.H./NNP
,/,
grower/NN
,/,
tramping/VBG
through/IN
his/PRP$
100-acre/JJ
Poverty/NNP
Lane/NNP
Orchard/NNP
on/IN
a/DT
crisp/JJ
autumn/NN
day/NN
recently/RB
./.
``/``
I/PRP
've/VBP
got/VBD
70/CD
kinds/NNS
of/IN
apples/NNS
./.
Here/RB
's/VBZ
a/DT
Waltana/NNP
,/,
''/''
he/PRP
exclaims/VBZ
,/,
picking/VBG
one/CD
off/IN
a/DT
tree/NN
./.
He/PRP
bites/VBZ
it/PRP
,/,
scowls/VBZ
and/CC
throws/VBZ
it/PRP
down/RP
./.
``/``
It/PRP
's/VBZ
a/DT
real/JJ
dog/NN
./.
''/''
Supermarkets/NNS
are/VBP
getting/VBG
into/IN
the/DT
variety/NN
act/NN
,/,
too/RB
./.
They/PRP
still/RB
buy/VBP
apples/NNS
mainly/RB
for/IN
big/JJ
,/,
red/JJ
good/JJ
looks/NNS
--/:
that/DT
's/VBZ
why/WRB
so/RB
many/JJ
taste/VBP
like/IN
woodchucks/NNS
'/POS
punching/NN
bags/NNS
./.
But/CC
freshness/NN
counts/VBZ
more/RBR
than/IN
it/PRP
once/RB
did/VBD
,/,
and/CC
stores/NNS
are/VBP
expanding/VBG
shelf/NN
space/NN
for/IN
unconventional/JJ
,/,
but/CC
tastier/JJR
,/,
and/CC
often/RB
pricier/JJR
,/,
apples/NNS
./.
``/``
Rather/RB
than/IN
sell/VB
39-cents-a-pound/JJ
Delicious/NNP
,/,
maybe/RB
we/PRP
can/MD
sell/VB
79-cents-a-pound/JJ
Fujis/NNPS
,/,
''/''
says/VBZ
Chuck/NNP
Tryon/NNP
,/,
perishables/NNS
director/NN
for/IN
Super/NNP
Valu/NNP
Inc./NNP
,/,
a/DT
Minneapolis/NNP
supermarket/NN
chain/NN
and/CC
food/NN
distributor/NN
./.
The/DT
Fuji/NNP
is/VBZ
a/DT
product/NN
of/IN
meticulous/JJ
Japanese/JJ
pomological/JJ
engineering/NN
,/,
which/WDT
fostered/VBD
it/PRP
50/CD
years/NNS
ago/RB
at/IN
a/DT
government/NN
research/NN
orchard/NN
./.
Japanese/JJ
researchers/NNS
have/VBP
bred/VBN
dozens/NNS
of/IN
strains/NNS
of/IN
Fujis/NNPS
to/TO
hone/VB
its/PRP$
color/NN
,/,
taste/NN
and/CC
shelf/NN
life/NN
./.
Now/RB
the/DT
best/JJS
of/IN
them/PRP
age/VBP
as/RB
gracefully/RB
as/IN
Grannies/NNPS
,/,
the/DT
industry/NN
's/POS
gold/JJ
standard/NN
for/IN
storability/NN
./.
In/IN
the/DT
cornucopia/NN
of/IN
go-go/JJ
apples/NNS
,/,
the/DT
Fuji/NNP
's/POS
track/NN
record/NN
stands/VBZ
out/RP
:/:
During/IN
the/DT
past/JJ
15/CD
years/NNS
,/,
it/PRP
has/VBZ
gone/VBN
from/IN
almost/RB
zilch/NN|JJ
to/TO
some/RB
50/CD
%/NN
of/IN
Japan/NNP
's/POS
market/NN
./.
``/``
The/DT
Japanese/JJ
apple/NN
market/NN
is/VBZ
very/RB
keyed/JJ
to/TO
high/JJ
quality/NN
,/,
''/''
says/VBZ
David/NNP
Lane/NNP
,/,
a/DT
scientist/NN
at/IN
a/DT
Canadian/JJ
horticulture/NN
research/NN
center/NN
in/IN
Summerland/NNP
,/,
British/NNP
Columbia/NNP
,/,
and/CC
so/RB
apples/NNS
are/VBP
more/JJR
of/IN
a/DT
delicacy/NN
there/RB
than/IN
a/DT
big/JJ
food/NN
commodity/NN
./.
The/DT
U.S./NNP
Department/NNP
of/IN
Agriculture/NNP
estimates/VBZ
that/IN
this/DT
year/NN
Americans/NNPS
will/MD
eat/VB
about/RB
40/CD
%/NN
more/RBR
fresh/JJ
apples/NNS
per/IN
capita/NN
than/IN
the/DT
Japanese/NNPS
./.
The/DT
Fuji/NNP
is/VBZ
still/RB
small/JJ
potatoes/NNS
in/IN
the/DT
U.S./NNP
,/,
sold/VBN
mainly/RB
in/IN
fruit/NN
boutiques/NNS
./.
But/CC
in/IN
California/NNP
,/,
says/VBZ
Craig/NNP
Ito/NNP
,/,
a/DT
Fuji-apple/JJ
grower/NN
,/,
``/``
There/EX
's/VBZ
a/DT
Fuji/NNP
apple/NN
cult/NN
./.
Once/IN
somebody/NN
eats/VBZ
one/CD
,/,
they/PRP
get/VBP
hooked/JJ
./.
''/''
Mr./NNP
Auvil/NNP
,/,
the/DT
Washington/NNP
grower/NN
,/,
says/VBZ
that/IN
he/PRP
could/MD
sell/VB
Fujis/NNPS
to/TO
Taiwan/NNP
buyers/NNS
at/IN
$/$
40/CD
a/DT
box/NN
if/IN
he/PRP
had/VBD
them/PRP
./.
Taiwan/NNP
already/RB
is/VBZ
a/DT
big/JJ
importer/NN
of/IN
Fujis/NNPS
from/IN
other/JJ
places/NNS
,/,
he/PRP
adds/VBZ
./.
his/PRP$
first/JJ
crop/NN
wo/MD
n't/RB
be/VB
picked/VBN
till/IN
next/JJ
year/NN
./.
``/``
I/PRP
expect/VBP
to/TO
see/VB
the/DT
demand/NN
exceed/VBP
supply/NN
for/IN
Fujis/NNPS
for/IN
the/DT
next/JJ
10/CD
to/TO
15/CD
years/NNS
,/,
''/''
he/PRP
adds/VBZ
./.
Washington/NNP
Red/NNP
Delicious/NNP
,/,
by/IN
the/DT
way/NN
,/,
are/VBP
wholesaling/VBG
for/IN
less/JJR
than/IN
$/$
10/CD
a/DT
box/NN
these/DT
days/NNS
./.
Mr./NNP
Auvil/NNP
sees/VBZ
Fujis/NNPS
,/,
in/IN
part/NN
,/,
as/IN
striking/VBG
a/DT
blow/NN
against/IN
the/DT
perversion/NN
of/IN
U.S./NNP
apples/NNS
by/IN
supermarkets/NNS
./.
``/``
When/WRB
the/DT
chain/NN
stores/NNS
took/VBD
over/RP
,/,
there/EX
was/VBD
no/RB
longer/JJR
a/DT
connection/NN
between/IN
grower/NN
and/CC
consumer/NN
./.
A/DT
guy/NN
is/VBZ
sitting/VBG
up/IN
in/IN
an/DT
office/NN
deciding/VBG
what/WP
you/PRP
're/VBP
going/VBG
to/TO
eat/VB
./.
''/''
After/IN
all/DT
,/,
until/IN
the/DT
1950s/CD
even/RB
the/DT
Red/NNP
Delicious/NNP
was/VBD
a/DT
firm/JJ
,/,
delectable/JJ
morsel/NN
./.
Then/RB
,/,
as/IN
growers/NNS
bred/VBD
them/PRP
more/RBR
for/IN
looks/VBZ
,/,
and/CC
to/TO
satisfy/VB
supermarket/NN
chains/NNS
'/POS
demands/NNS
of/IN
long-term/JJ
storage/NN
,/,
the/DT
Red/NNP
went/VBD
into/IN
decline/NN
./.
Now/RB
,/,
those/DT
red/JJ
applelike/JJ
things/NNS
stores/NNS
sell/VBP
in/IN
summer/NN
are/VBP
fruitbowl/NN
lovely/JJ
,/,
but/CC
usually/RB
not/RB
good/JJ
eating/NN
./.
They/PRP
do/VBP
deserve/VB
respect/NN
,/,
however/RB
--/:
they/PRP
are/VBP
almost/RB
a/DT
year/NN
old/JJ
,/,
probably/RB
equal/JJ
to/TO
about/RB
106/CD
in/IN
human/JJ
years/NNS
./.
The/DT
Fuji/NNP
,/,
to/TO
be/VB
sure/JJ
,/,
has/VBZ
blemishes/NNS
too/RB
./.
It/PRP
ripens/VBZ
later/RB
than/IN
most/JJS
apples/NNS
,/,
and/CC
growing/VBG
it/PRP
in/IN
U.S./NNP
areas/NNS
with/IN
chilly/JJ
autumns/NNS
may/MD
be/VB
tricky/JJ
./.
Moreover/RB
,/,
the/DT
frumpy/JJ
Fuji/NNP
must/MD
compete/VB
with/IN
an/DT
increasingly/RB
dolledup/JJ
Delicious/NNP
./.
Mr./NNP
Broderick/NNP
,/,
the/DT
Massachusetts/NNP
grower/NN
,/,
says/VBZ
the/DT
``/``
big/JJ
boss/NN
''/''
at/IN
a/DT
supermarket/NN
chain/NN
even/RB
rejected/VBD
his/PRP$
Red/NNP
Delicious/NNP
recently/RB
because/IN
they/PRP
were/VBD
n't/RB
waxed/VBN
and/CC
brushed/VBN
for/IN
extra/JJ
shine/NN
./.
And/CC
he/PRP
had/VBD
n't/RB
used/VBN
hormones/NNS
,/,
which/WDT
many/JJ
growers/NNS
employ/VBP
to/TO
elongate/VB
their/PRP$
Delicious/NNP
apples/NNS
for/IN
greater/JJR
eye/NN
appeal/NN
./.
Still/RB
,/,
Mr./NNP
Auvil/NNP
points/VBZ
out/RP
,/,
Grannies/NNPS
became/VBD
popular/JJ
without/IN
big/JJ
,/,
red/JJ
looks/NNS
,/,
so/RB
why/WRB
not/RB
Fujis/NNPS
?/.
He/PRP
sees/VBZ
a/DT
shift/NN
in/IN
American/JJ
values/NNS
--/:
at/IN
least/JJS
regarding/VBG
apples/NNS
--/:
toward/IN
more/JJR
emphasis/NN
on/IN
substance/NN
and/CC
less/JJR
on/IN
glitz/NN
./.
``/``
Taste/NN
has/VBZ
finally/RB
come/VBN
to/TO
the/DT
fore/NN
,/,
''/''
he/PRP
says/VBZ
./.
Or/CC
,/,
for/IN
that/DT
matter/NN
,/,
the/DT
core/NN
./.
Brush/NNP
Wellman/NNP
Inc./NNP
said/VBD
its/PRP$
board/NN
increased/VBD
the/DT
number/NN
of/IN
shares/NNS
of/IN
common/JJ
stock/NN
to/TO
be/VB
purchased/VBN
under/IN
a/DT
previously/RB
authorized/VBN
program/NN
to/TO
3.9/CD
million/CD
from/IN
2.9/CD
million/CD
./.
The/DT
maker/NN
of/IN
engineered/VBN
materials/NNS
has/VBZ
acquired/VBN
more/JJR
than/IN
2.7/CD
million/CD
shares/NNS
under/IN
the/DT
program/NN
./.
The/DT
state/NN
attorney/NN
general/JJ
's/POS
office/NN
filed/VBD
suit/NN
against/IN
five/CD
New/NNP
York/NNP
brokerage/NN
firms/NNS
,/,
charging/VBG
them/PRP
with/IN
responsibility/NN
for/IN
much/JJ
of/IN
a/DT
$/$
200/CD
million/CD
loss/NN
incurred/VBN
by/IN
the/DT
state/NN
treasurer/NN
's/POS
office/NN
in/IN
1987/CD
./.
The/DT
suit/NN
sets/VBZ
the/DT
firms/NNS
'/POS
liability/NN
at/IN
more/JJR
than/IN
$/$
185/CD
million/CD
./.
The/DT
firms/NNS
are/VBP
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
,/,
Salomon/NNP
Brothers/NNP
Inc./NNP
,/,
County/NNP
Natwest/NNP
Government/NNP
Securities/NNP
Inc./NNP
,/,
Greenwich/NNP
Capital/NNP
Markets/NNP
Inc./NNP
and/CC
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
./.
The/DT
firms/NNS
have/VBP
all/DT
said/VBN
that/IN
West/NNP
Virginia/NNP
's/POS
suit/NN
is/VBZ
without/IN
merit/NN
./.
On/IN
Friday/NNP
,/,
the/DT
firms/NNS
filed/VBD
a/DT
suit/NN
against/IN
West/NNP
Virginia/NNP
in/IN
New/NNP
York/NNP
state/NN
court/NN
asking/VBG
for/IN
a/DT
declaratory/JJ
judgment/NN
absolving/VBG
them/PRP
of/IN
liability/NN
./.
That/DT
suit/NN
is/VBZ
pending/VBG|JJ
./.
The/DT
suits/NNS
relate/VBP
to/TO
a/DT
$/$
200/CD
million/CD
loss/NN
,/,
disclosed/VBN
in/IN
December/NNP
,/,
that/WDT
was/VBD
suffered/VBN
by/IN
West/NNP
Virginia/NNP
's/POS
consolidated/JJ
investment/NN
pool/NN
./.
The/DT
pool/NN
invested/VBD
idle/JJ
cash/NN
for/IN
many/JJ
state/NN
agencies/NNS
and/CC
local/JJ
governments/NNS
./.
In/IN
its/PRP$
suit/NN
,/,
the/DT
attorney/NN
general/JJ
's/POS
office/NN
alleges/VBZ
that/IN
brokers/NNS
encouraged/VBD
members/NNS
of/IN
the/DT
treasurer/NN
's/POS
office/NN
to/TO
engage/VB
in/IN
high-volume/JJ
,/,
high-risk/JJ
transactions/NNS
that/WDT
benefited/VBD
the/DT
brokers/NNS
./.
Few/JJ
people/NNS
are/VBP
aware/JJ
that/IN
the/DT
federal/JJ
government/NN
lends/VBZ
almost/RB
as/IN
much/JJ
money/NN
as/IN
it/PRP
borrows/VBZ
./.
From/IN
1980/CD
to/TO
1988/CD
,/,
while/IN
federal/JJ
budget/NN
deficits/NNS
totaled/VBD
$/$
1.41/CD
trillion/CD
,/,
the/DT
government/NN
issued/VBD
$/$
394/CD
billion/CD
of/IN
new/JJ
direct/JJ
loans/NNS
and/CC
an/DT
additional/JJ
$/$
756/CD
billion/CD
of/IN
new/JJ
primary/JJ
loan/NN
guarantees/NNS
./.
These/DT
figures/NNS
omit/VBP
secondary/JJ
guarantees/NNS
,/,
deposit/NN
insurance/NN
,/,
and/CC
the/DT
activities/NNS
of/IN
Government-Sponsored/NNP
Enterprises/NNP
a/DT
huge/JJ
concern/NN
in/IN
its/PRP$
own/JJ
right/NN
,/,
as/IN
detailed/VBN
on/IN
this/DT
page/NN
May/NNP
3/CD
Federal/JJ
credit/NN
programs/NNS
date/VBP
back/RB
to/TO
the/DT
New/NNP
Deal/NNP
,/,
and/CC
were/VBD
meant/VBN
to/TO
break/VB
even/RB|JJ
financially/RB
./.
Since/IN
the/DT
1950s/CD
,/,
federal/JJ
lending/NN
has/VBZ
experienced/VBN
extraordinary/JJ
growth/NN
in/IN
credit/NN
volume/NN
,/,
subsidy/NN
rates/NNS
,/,
and/CC
policy/NN
applications/NNS
,/,
spurred/VBN
on/RP
by/IN
the/DT
growth/NN
of/IN
government/NN
in/IN
general/JJ
and/CC
budget/NN
gimmicks/NNS
and/CC
deceptive/JJ
management/NN
in/IN
particular/NN
./.
As/IN
we/PRP
will/MD
see/VB
,/,
many/JJ
of/IN
these/DT
obligations/NNS
do/VBP
n't/RB
show/VB
up/RP
as/IN
part/NN
of/IN
the/DT
federal/JJ
deficit/NN
./.
But/CC
recent/JJ
events/NNS
indicate/VBP
that/DT
federal/JJ
credit/NN
is/VBZ
out/IN
of/IN
control/NN
./.
Student/NN
loan/NN
defaults/NNS
remain/VBP
high/JJ
at/IN
about/RB
12/CD
%/NN
,/,
and/CC
the/DT
program/NN
has/VBZ
been/VBN
rocked/VBN
by/IN
allegations/NNS
of/IN
fraud/NN
and/CC
mismanagement/NN
./.
Farmers/NNP
Home/NNP
Administration/NNP
FmHA/NNP
loans/NNS
have/VBP
turned/VBN
into/IN
de/FW
facto/FW
giveaway/JJ
programs/NNS
;/:
losses/NNS
over/IN
the/DT
next/JJ
three/CD
years/NNS
are/VBP
expected/VBN
to/TO
exceed/VB
$/$
20/CD
billion/CD
./.
Defaults/NNS
on/IN
Veterans/NNP
Affairs/NNP
loan/NN
guarantees/NNS
have/VBP
quadrupled/VBN
in/IN
the/DT
past/JJ
eight/CD
years/NNS
./.
Last/JJ
month/NN
,/,
the/DT
General/NNP
Accounting/NNP
Office/NNP
reported/VBD
that/IN
defaults/NNS
in/IN
Federal/NNP
Housing/NNP
Administration/NNP
guarantees/NNS
were/VBD
five/CD
times/NNS
as/RB
high/JJ
as/IN
previously/RB
estimated/VBN
,/,
and/CC
that/IN
FHA/NNP
's/POS
equity/NN
fell/VBD
to/TO
minus/IN
$/$
2.9/CD
billion/CD
./.
GAO/NNP
's/POS
findings/NNS
are/VBP
particularly/RB
troubling/JJ
because/IN
the/DT
FHA/NNP
has/VBZ
about/RB
$/$
300/CD
billion/CD
in/IN
obligations/NNS
outstanding/JJ
and/CC
had/VBD
previously/RB
been/VBN
considered/VBN
one/CD
of/IN
the/DT
most/RBS
financially/RB
secure/VB
credit/NN
programs/NNS
./.
Scores/NNS
of/IN
other/JJ
credit/NN
programs/NNS
,/,
subsidizing/VBG
agriculture/NN
,/,
small/JJ
business/NN
,/,
exporters/NNS
,/,
defense/NN
,/,
energy/NN
,/,
transportation/NN
and/CC
others/NNS
,/,
are/VBP
less/RBR
visible/JJ
but/CC
in/IN
no/DT
better/JJR
shape/NN
./.
If/IN
the/DT
programs/NNS
continue/VBP
their/PRP$
present/JJ
path/NN
,/,
the/DT
potential/JJ
government/NN
losses/NNS
are/VBP
staggering/JJ
:/:
The/DT
federal/JJ
government/NN
holds/VBZ
$/$
222/CD
billion/CD
in/IN
direct/JJ
loans/NNS
outstanding/JJ
and/CC
backs/VBZ
an/DT
additional/JJ
$/$
550/CD
billion/CD
in/IN
primary/JJ
guarantees/NNS
./.
Secondary/JJ
guarantees/NNS
of/IN
pools/NNS
of/IN
FHA/NNP
VA-backed/JJ
loans/NNS
by/IN
the/DT
agency/NN
known/VBN
as/IN
Ginnie/NNP
Mae/NNP
currently/RB
exceed/VBP
$/$
330/CD
billion/CD
./.
Although/IN
external/JJ
events/NNS
have/VBP
contributed/VBN
to/TO
the/DT
morass/NN
,/,
the/DT
principal/JJ
causes/NNS
of/IN
the/DT
current/JJ
crisis/NN
are/VBP
internal/JJ
and/CC
generic/JJ
to/TO
all/DT
programs/NNS
./.
To/TO
reduce/VB
the/DT
risks/NNS
while/IN
still/RB
retaining/VBG
the/DT
legitimate/JJ
benefits/NNS
these/DT
programs/NNS
can/MD
provide/VB
,/,
credit/NN
policy/NN
must/MD
:/:
1/LS
./.
Use/VB
credit/NN
to/TO
improve/VB
the/DT
operation/NN
of/IN
capital/NN
markets/NNS
,/,
not/RB
to/TO
provide/VB
subsidies/NNS
./.
There/EX
is/VBZ
a/DT
fundamental/JJ
conflict/NN
between/IN
providing/VBG
a/DT
subsidy/NN
and/CC
maintaining/VBG
the/DT
integrity/NN
of/IN
a/DT
credit/NN
program/NN
./.
If/IN
the/DT
program/NN
is/VBZ
meant/VBN
to/TO
provide/VB
a/DT
subsidy/NN
,/,
collecting/VBG
the/DT
debt/NN
defeats/VBZ
the/DT
original/JJ
goal/NN
./.
Thus/RB
,/,
subsidized/JJ
loans/NNS
tend/VBP
to/TO
turn/VB
into/IN
giveaway/JJ
programs/NNS
,/,
with/IN
increasing/VBG
subsidy/NN
and/CC
default/NN
rates/NNS
over/IN
time/NN
./.
To/TO
avoid/VB
this/DT
problem/NN
,/,
government/NN
should/MD
issue/VB
credit/NN
only/RB
if/IN
it/PRP
intends/VBZ
to/TO
use/VB
every/DT
legal/JJ
method/NN
to/TO
collect/VB
./.
In/IN
contrast/NN
,/,
credit/NN
programs/NNS
can/MD
be/VB
appropriate/JJ
tools/NNS
to/TO
improve/VB
the/DT
operation/NN
of/IN
capital/NN
markets/NNS
./.
For/IN
example/NN
,/,
legal/JJ
restrictions/NNS
on/IN
interstate/JJ
banking/NN
once/RB
inhibited/VBD
the/DT
supply/NN
of/IN
credit/NN
to/TO
the/DT
agricultural/JJ
sector/NN
./.
Farm/NN
lending/NN
was/VBD
enacted/VBN
to/TO
correct/VB
this/DT
problem/NN
by/IN
providing/VBG
a/DT
reliable/JJ
flow/NN
of/IN
lendable/JJ
funds/NNS
./.
However/RB
,/,
this/DT
in/IN
no/DT
way/NN
justifies/VBZ
the/DT
huge/JJ
government/NN
subsidies/NNS
and/CC
losses/NNS
on/IN
such/JJ
loans/NNS
./.
Credit/NN
policy/NN
should/MD
separate/VB
these/DT
two/CD
competing/VBG
objectives/NNS
and/CC
eliminate/VB
aspects/NNS
that/WDT
provide/VBP
the/DT
subsidy/NN
./.
For/IN
example/NN
,/,
student/NN
loans/NNS
currently/RB
attempt/VBP
to/TO
subsidize/VB
college/NN
attendance/NN
and/CC
mitigate/VB
problems/NNS
created/VBN
by/IN
the/DT
fact/NN
that/IN
students/NNS
'/POS
future/JJ
earnings/NNS
are/VBP
not/RB
accepted/VBN
as/IN
collateral/NN
./.
The/DT
program/NN
provides/VBZ
highly/RB
subsidized/JJ
loans/NNS
to/TO
any/DT
student/NN
whose/WP$
family/NN
earns/VBZ
less/JJR
than/IN
a/DT
particular/JJ
amount/NN
./.
High/JJ
default/NN
rates/NNS
,/,
a/DT
low/JJ
interest/NN
rate/NN
,/,
and/CC
government/NN
coverage/NN
of/IN
all/DT
interest/NN
costs/NNS
while/IN
the/DT
student/NN
is/VBZ
in/IN
school/NN
make/VBP
program/NN
costs/NNS
extremely/RB
high/JJ
./.
Families/NNS
that/WDT
do/VBP
not/RB
need/VB
the/DT
loan/NN
can/MD
make/VB
money/NN
simply/RB
by/IN
putting/VBG
the/DT
loan/NN
in/IN
the/DT
bank/NN
and/CC
paying/VBG
it/PRP
back/RP
when/WRB
the/DT
student/NN
graduates/VBZ
./.
In/IN
contrast/NN
,/,
a/DT
student/NN
loan/NN
program/NN
that/WDT
was/VBD
meant/VBN
solely/RB
to/TO
correct/VB
capital-market/JJ
imperfections/NNS
would/MD
allow/VB
loans/NNS
for/IN
any/DT
student/NN
,/,
regardless/RB
of/IN
family/NN
income/NN
,/,
at/IN
market/NN
or/CC
near-market/JJ
rates/NNS
./.
While/IN
the/DT
student/NN
was/VBD
in/IN
school/NN
,/,
interest/NN
costs/NNS
would/MD
either/RB
be/VB
paid/VBN
by/IN
the/DT
student/NN
or/CC
added/VBN
to/TO
the/DT
loan/NN
balance/NN
./.
This/DT
program/NN
,/,
combined/VBN
with/IN
cash/NN
grants/NNS
to/TO
needy/JJ
students/NNS
,/,
would/MD
reduce/VB
program/NN
costs/NNS
and/CC
much/RB
more/RBR
effectively/RB
target/VB
the/DT
intended/JJ
beneficiaries/NNS
./.
2/LS
./.
Provide/VB
better/JJR
incentives/NNS
./.
Given/VBN
the/DT
structure/NN
of/IN
most/JJS
credit/NN
programs/NNS
,/,
it/PRP
is/VBZ
surprising/JJ
that/IN
default/NN
rates/NNS
are/VBP
not/RB
even/RB
higher/JJR
./.
Guarantee/NN
rates/NNS
are/VBP
typically/RB
100/CD
%/NN
,/,
giving/VBG
lenders/NNS
little/JJ
reason/NN
to/TO
screen/NN
customers/NNS
carefully/RB
./.
Reducing/VBG
those/DT
rates/NNS
moderately/RB
(/(
say/UH
,/,
to/TO
75/CD
%/NN
substantial/JJ
assistance/NN
to/TO
borrowers/NNS
./.
But/CC
it/PRP
would/MD
also/RB
encourage/VB
lenders/NNS
to/TO
choose/VB
more/RBR
creditworthy/NN
customers/NNS
,/,
and/CC
go/VB
a/DT
long/JJ
way/NN
toward/IN
reducing/VBG
defaults/NNS
./.
For/IN
example/NN
,/,
the/DT
Small/NNP
Business/NNP
Administration/NNP
has/VBZ
had/VBD
reasonable/JJ
success/NN
in/IN
reducing/VBG
both/DT
guarantee/NN
rates/NNS
and/CC
default/NN
rates/NNS
in/IN
its/PRP$
Preferred/NNP
Lenders/NNP
'/POS
Program/NNP
./.
Borrowers/NNS
'/POS
incentives/NNS
are/VBP
equally/RB
skewed/JJ
./.
Since/IN
the/DT
government/NN
has/VBZ
a/DT
dismal/JJ
record/NN
of/IN
collecting/VBG
bad/JJ
debts/NNS
,/,
the/DT
costs/NNS
to/TO
the/DT
borrower/NN
of/IN
defaulting/VBG
are/VBP
usually/RB
low/JJ
./.
In/IN
addition/NN
,/,
it/PRP
is/VBZ
often/RB
possible/JJ
to/TO
obtain/VB
a/DT
new/JJ
government/NN
loan/NN
even/RB
if/IN
existing/JJ
debts/NNS
are/VBP
not/RB
paid/VBN
off/RP
./.
Simple/NN
policy/NN
prescriptions/NNS
in/IN
this/DT
case/NN
would/MD
be/VB
to/TO
improve/VB
debt/NN
collection/NN
the/DT
gloves/NNS
off/RP
contracted/VBN
collection/NN
agencies/NNS
new/JJ
credit/NN
to/TO
defaulters/NNS
./.
These/DT
provisions/NNS
would/MD
be/VB
difficult/JJ
to/TO
enforce/VB
for/IN
a/DT
program/NN
intended/VBN
to/TO
provide/VB
a/DT
subsidy/NN
,/,
but/CC
would/MD
be/VB
reasonable/JJ
and/CC
effective/JJ
devices/NNS
for/IN
programs/NNS
that/WDT
attempt/VBP
to/TO
offset/VB
market/NN
imperfections/NNS
./.
3/LS
./.
Record/VB
the/DT
true/JJ
costs/NNS
of/IN
credit/NN
programs/NNS
in/IN
the/DT
federal/JJ
budget/NN
./.
Since/IN
the/DT
budget/NN
measures/VBZ
cash/NN
flow/NN
,/,
a/DT
new/JJ
$/$
1/CD
direct/JJ
loan/NN
is/VBZ
treated/VBN
as/IN
a/DT
$/$
1/CD
expenditure/NN
,/,
even/RB
though/IN
at/IN
least/JJS
part/NN
of/IN
the/DT
loan/NN
will/MD
be/VB
paid/VBN
back/RP
./.
Loan/NN
guarantees/NNS
do/VBP
n't/RB
appear/VB
at/IN
all/DT
until/IN
the/DT
borrower/NN
defaults/NNS
,/,
so/RB
new/JJ
guarantees/NNS
do/VBP
not/RB
raise/VB
the/DT
deficit/NN
,/,
even/RB
though/IN
they/PRP
create/VBP
future/JJ
liabilities/NNS
for/IN
the/DT
government/NN
./.
By/IN
converting/VBG
an/DT
expenditure/NN
or/CC
loan/NN
to/TO
a/DT
guarantee/NN
,/,
the/DT
government/NN
can/MD
ensure/VB
the/DT
same/JJ
flow/NN
of/IN
resources/NNS
and/CC
reduce/VB
the/DT
current/JJ
deficit/NN
./.
Predictably/RB
,/,
guarantees/NNS
outstanding/JJ
have/VBP
risen/VBN
by/IN
$/$
130/CD
billion/CD
since/IN
1985/CD
,/,
while/IN
direct/JJ
loans/NNS
outstanding/JJ
have/VBP
fallen/VBN
by/IN
$/$
30/CD
billion/CD
./.
The/DT
true/JJ
budgetary/JJ
cost/NN
of/IN
a/DT
credit/NN
subsidy/NN
is/VBZ
the/DT
discounted/JJ
value/NN
of/IN
the/DT
net/JJ
costs/NNS
to/TO
government/NN
./.
This/DT
figure/NN
could/MD
be/VB
estimated/VBN
using/VBG
techniques/NNS
employed/VBN
by/IN
private/JJ
lenders/NNS
to/TO
forecast/VB
losses/NNS
,/,
or/CC
determined/VBN
by/IN
selling/VBG
loans/NNS
to/TO
private/JJ
owners/NNS
federal/JJ
guarantees/NNS
Neither/DT
technique/NN
is/VBZ
perfect/JJ
,/,
but/CC
both/DT
are/VBP
better/JJR
than/IN
the/DT
current/JJ
system/NN
,/,
which/WDT
misstates/VBZ
the/DT
costs/NNS
of/IN
new/JJ
credit/NN
programs/NNS
by/IN
amounts/NNS
that/WDT
vary/VBP
substantially/RB
and/CC
average/VBP
about/RB
$/$
20/CD
billion/CD
annually/RB
,/,
according/VBG
to/TO
the/DT
Congressional/NNP
Budget/NNP
Office/NNP
./.
A/DT
budget/NN
that/WDT
reflected/VBD
the/DT
real/JJ
costs/NNS
of/IN
lending/NN
would/MD
eliminate/VB
incentives/NNS
to/TO
convert/VB
spending/NN
or/CC
lending/NN
programs/NNS
to/TO
guarantees/NNS
and/CC
would/MD
let/VB
taxpayers/NNS
know/VB
what/WP
Congress/NNP
is/VBZ
committing/VBG
them/PRP
to/TO
./.
4/LS
./.
Impose/VB
standard/JJ
accounting/NN
and/CC
administrative/JJ
practices/NNS
./.
Creative/JJ
accounting/NN
is/VBZ
a/DT
hallmark/NN
of/IN
federal/JJ
credit/NN
./.
Many/JJ
agencies/NNS
roll/VBP
over/RP
their/PRP$
debt/NN
,/,
paying/VBG
off/RP
delinquent/JJ
loans/NNS
by/IN
issuing/VBG
new/JJ
loans/NNS
,/,
or/CC
converting/VBG
defaulted/JJ
loan/NN
guarantees/NNS
into/IN
direct/JJ
loans/NNS
./.
In/IN
any/DT
case/NN
,/,
they/PRP
avoid/VBP
having/VBG
to/TO
write/VB
off/RP
the/DT
loans/NNS
./.
Some/DT
agencies/NNS
simply/RB
keep/VB
bad/JJ
loans/NNS
on/IN
the/DT
books/NNS
;/:
as/RB
late/RB
as/IN
1987/CD
,/,
the/DT
Export-Import/NNP
Bank/NNP
held/VBD
in/IN
its/PRP$
portfolio/NN
at/IN
face/NN
value/NN
loans/NNS
made/VBN
to/TO
Cuba/NNP
in/IN
the/DT
1950s/CD
./.
More/RBR
seriously/RB
,/,
FmHA/NNP
has/VBZ
carried/VBN
several/JJ
billion/CD
dollars/NNS
of/IN
defaulted/JJ
loans/NNS
at/IN
face/NN
value/NN
./.
Until/IN
GAO/NNP
's/POS
recent/JJ
audit/NN
,/,
FHA/NNP
books/NNS
had/VBD
not/RB
been/VBN
subject/JJ
to/TO
a/DT
complete/JJ
external/JJ
audit/NN
in/IN
15/CD
years/NNS
./.
The/DT
administration/NN
of/IN
federal/JJ
credit/NN
should/MD
closely/RB
parallel/VB
private/JJ
lending/JJ
practices/NNS
,/,
including/VBG
the/DT
development/NN
of/IN
a/DT
loan/NN
loss/NN
reserve/NN
and/CC
regular/JJ
outside/JJ
audits/NN
./.
Establishing/VBG
these/DT
practices/NNS
would/MD
permit/VB
earlier/JJR
identification/NN
of/IN
emerging/VBG
financial/JJ
crises/NNS
,/,
provide/VB
better/JJR
information/NN
for/IN
loan/NN
sales/NNS
and/CC
budgeting/NN
decisions/NNS
,/,
and/CC
reduce/VB
fraud/NN
./.
Government/NNP
lending/NN
was/VBD
not/RB
intended/VBN
to/TO
be/VB
a/DT
way/NN
to/TO
obfuscate/VB
spending/NN
figures/NNS
,/,
hide/VB
fraudulent/JJ
activity/NN
,/,
or/CC
provide/VB
large/JJ
subsidies/NNS
./.
The/DT
reforms/NNS
described/VBN
above/RB
would/MD
provide/VB
a/DT
more/RBR
limited/JJ
,/,
but/CC
clearer/JJR
,/,
safer/JJR
and/CC
ultimately/RB
more/RBR
useful/JJ
role/NN
for/IN
government/NN
as/IN
a/DT
lender/NN
./.
Without/IN
such/JJ
reforms/NNS
,/,
credit/NN
programs/NNS
will/MD
continue/VB
to/TO
be/VB
a/DT
large-scale/JJ
,/,
high-risk/JJ
proposition/NN
for/IN
taxpayers/NNS
./.
Mr./NNP
Gale/NNP
is/VBZ
an/DT
assistant/JJ
professor/NN
of/IN
economics/NN
at/IN
UCLA/NNP
./.
Malcolm/NNP
S./NNP
Todt/NNP
was/VBD
named/VBN
vice/NN
president/NN
and/CC
senior/JJ
officer/NN
in/IN
charge/NN
of/IN
equipment/NN
leasing/VBG|NN
to/TO
municipalities/NNS
,/,
a/DT
new/JJ
effort/NN
of/IN
this/DT
bond/NN
insurer/NN
./.
Mr./NNP
Todt/NNP
had/VBD
been/VBN
vice/RB
president/NN
and/CC
treasurer/NN
of/IN
Insilco/NNP
Corp/NNP
./.
President/NNP
Bush/NNP
is/VBZ
considering/VBG
casting/VBG
a/DT
line-item/JJ
veto/NN
as/IN
a/DT
test/NN
to/TO
determine/VB
whether/IN
the/DT
courts/NNS
will/MD
rule/VB
that/IN
he/PRP
has/VBZ
such/JJ
authority/NN
./.
Mr./NNP
Bush/NNP
has/VBZ
long/RB
campaigned/VBN
for/IN
passage/NN
of/IN
a/DT
bill/NN
or/CC
a/DT
constitutional/JJ
amendment/NN
that/WDT
would/MD
explicitly/RB
give/VB
him/PRP
a/DT
line-item/JJ
veto/NN
,/,
which/WDT
would/MD
enable/VB
him/PRP
to/TO
kill/VB
individual/JJ
items/NNS
in/IN
a/DT
big/JJ
spending/NN
bill/NN
without/IN
having/VBG
to/TO
kill/VB
the/DT
entire/JJ
bill/NN
./.
He/PRP
has/VBZ
argued/VBN
that/IN
such/JJ
presidential/JJ
power/NN
is/VBZ
necessary/JJ
to/TO
rein/VB
in/RP
congressional/JJ
spending/NN
./.
But/CC
some/DT
analysts/NNS
,/,
particularly/RB
conservative/JJ
legal/JJ
scholars/NNS
,/,
have/VBP
urged/VBN
Mr./NNP
Bush/NNP
not/RB
to/TO
wait/VB
for/IN
explicit/JJ
authorization/NN
but/CC
simply/RB
to/TO
assert/VB
that/IN
the/DT
Constitution/NNP
already/RB
implicitly/RB
gives/VBZ
him/PRP
the/DT
power/NN
to/TO
exercise/VB
a/DT
line-item/JJ
veto/NN
./.
Such/PDT
an/DT
assertion/NN
most/RBS
likely/RB
would/MD
bring/VB
about/RP
a/DT
court/NN
challenge/NN
from/IN
Congress/NNP
that/WDT
would/MD
clarify/VB
whether/IN
a/DT
president/NN
already/RB
has/VBZ
such/JJ
power/NN
./.
White/NNP
House/NNP
spokesman/NN
Marlin/NNP
Fitzwater/NNP
,/,
confirming/VBG
comments/NNS
made/VBN
this/DT
week/NN
by/IN
Vice/NNP
President/NNP
Dan/NNP
Quayle/NNP
,/,
said/VBD
Mr./NNP
Bush/NNP
is/VBZ
``/``
interested/JJ
''/''
in/IN
finding/VBG
a/DT
suitable/JJ
test/NN
case/NN
./.
But/CC
he/PRP
also/RB
said/VBD
that/IN
exercising/VBG
a/DT
test/NN
line-item/JJ
veto/NN
is/VBZ
n't/RB
a/DT
``/``
top/JJ
initiative/NN
''/''
on/IN
the/DT
president/NN
's/POS
agenda/NN
because/IN
he/PRP
faces/VBZ
more-pressing/JJ
budget/NN
issues/NNS
at/IN
the/DT
moment/NN
./.
Harris/NNP
Ravine/NNP
,/,
executive/JJ
vice/NN
president/NN
of/IN
customer/NN
satisfaction/NN
,/,
was/VBD
named/VBN
executive/JJ
vice/NN
president/NN
,/,
finance/NN
and/CC
administration/NN
of/IN
this/DT
maker/NN
of/IN
data/NNS|NN
storage/NN
equipment/NN
./.
Mr./NNP
Ravine/NNP
succeeds/VBZ
William/NNP
R./NNP
Mansfield/NNP
Jr./NNP
,/,
who/WP
will/MD
remain/VB
with/IN
the/DT
company/NN
until/IN
the/DT
end/NN
of/IN
the/DT
year/NN
to/TO
support/VB
the/DT
transition/NN
and/CC
to/TO
complete/VB
important/JJ
projects/NNS
./.
The/DT
Bush/NNP
administration/NN
said/VBD
it/PRP
is/VBZ
submitting/VBG
a/DT
``/``
comprehensive/JJ
''/''
proposal/NN
for/IN
overhauling/VBG
agricultural/JJ
trade/NN
that/WDT
could/MD
help/VB
break/VB
an/DT
impasse/NN
in/IN
the/DT
current/JJ
round/NN
of/IN
multilateral/JJ
trade/NN
negotiations/NNS
./.
The/DT
proposal/NN
reiterates/VBZ
the/DT
U.S./NNP
desire/NN
to/TO
scrap/VB
or/CC
reduce/VB
a/DT
host/NN
of/IN
trade-distorting/JJ
subsidies/NNS
on/IN
farm/NN
products/NNS
./.
But/CC
it/PRP
would/MD
allow/VB
considerable/JJ
flexibility/NN
in/IN
determining/VBG
how/WRB
and/CC
when/WRB
these/DT
goals/NNS
would/MD
be/VB
achieved/VBN
./.
The/DT
U.S./NNP
plan/NN
also/RB
would/MD
ease/VB
the/DT
transition/NN
to/TO
freer/JJR
agriculture/NN
trade/NN
by/IN
allowing/VBG
some/DT
countries/NNS
to/TO
convert/VB
non-tariff/JJ
barriers/NNS
into/IN
tariffs/NNS
that/WDT
,/,
together/RB
with/IN
existing/JJ
tariffs/NNS
,/,
then/RB
would/MD
be/VB
phased/VBN
out/RP
over/IN
10/CD
years/NNS
./.
Trade/NNP
Representative/NNP
Carla/NNP
Hills/NNP
,/,
who/WP
along/IN
with/IN
Agriculture/NNP
Secretary/NNP
Clayton/NNP
Yeutter/NNP
unveiled/VBD
the/DT
proposal/NN
,/,
said/VBD
she/PRP
is/VBZ
confident/JJ
it/PRP
will/MD
gain/VB
considerable/JJ
support/NN
from/IN
the/DT
U.S./NNP
's/POS
trading/NN
partners/NNS
./.
Mr./NNP
Yeutter/NNP
,/,
seeking/VBG
to/TO
allay/VB
European/JJ
objections/NNS
to/TO
an/DT
earlier/JJR
U.S./NNP
plan/NN
that/WDT
called/VBD
for/IN
eliminating/VBG
all/DT
farm-trade/JJ
barriers/NNS
by/IN
the/DT
year/NN
2000/CD
,/,
said/VBD
the/DT
new/JJ
U.S./NNP
proposal/NN
would/MD
n't/RB
``/``
put/VB
farmers/NNS
out/IN
of/IN
business/NN
''/''
but/CC
would/MD
only/RB
encourage/VB
them/PRP
to/TO
``/``
grow/VB
what/WP
the/DT
markets/NNS
desire/VBP
instead/RB
of/IN
what/WP
the/DT
government/NN
wants/VBZ
./.
''/''
The/DT
U.S./NNP
is/VBZ
submitting/VBG
the/DT
proposal/NN
today/NN
in/IN
Geneva/NNP
,/,
hoping/VBG
that/IN
the/DT
initiative/NN
will/MD
spur/VB
members/NNS
of/IN
the/DT
General/NNP
Agreement/NNP
on/IN
Tariffs/NNP
and/CC
Trade/NNP
to/TO
reach/VB
agreement/NN
on/IN
new/JJ
trade/NN
rules/NNS
before/IN
their/PRP$
current/JJ
negotiating/NN
round/NN
concludes/VBZ
in/IN
December/NNP
1990/CD
./.
Another/DT
U.S./NNP
proposal/NN
filed/VBN
Monday/NNP
urges/VBZ
more/JJR
``/``
fair/JJ
play/NN
''/''
in/IN
services/NNS
trade/NN
,/,
including/VBG
predictable/JJ
and/CC
clear/JJ
rules/NNS
and/CC
equality/NN
in/IN
the/DT
treatment/NN
of/IN
foreign/JJ
and/CC
domestic/JJ
service/NN
companies/NNS
./.
Unlike/IN
the/DT
earlier/JJR
U.S./NNP
farm-trade/JJ
proposal/NN
which/WDT
struck/VBD
European/JJ
countries/NNS
as/RB
too/RB
extreme/JJ
,/,
the/DT
latest/JJS
plan/NN
would/MD
provide/VB
some/DT
room/NN
for/IN
maneuver/NN
./.
For/IN
instance/NN
,/,
the/DT
new/JJ
U.S./NNP
package/NN
makes/VBZ
clear/JJ
there/EX
would/MD
be/VB
a/DT
transition/NN
period/NN
during/IN
which/WDT
GATT/NNP
members/NNS
could/MD
use/VB
a/DT
combination/NN
of/IN
tariffs/NNS
and/CC
quotas/NNS
to/TO
cushion/VB
their/PRP$
farmers/NNS
from/IN
foreign/JJ
competition/NN
./.
It/PRP
also/RB
says/VBZ
countries/NNS
could/MD
temporarily/RB
raise/VB
tariffs/NNS
on/IN
certain/JJ
products/NNS
if/IN
they/PRP
experience/VBP
an/DT
unusually/RB
heavy/JJ
volume/NN
of/IN
imports/NNS
./.
Instead/RB
of/IN
proposing/VBG
a/DT
complete/JJ
elimination/NN
of/IN
farm/NN
subsidies/NNS
,/,
as/IN
the/DT
earlier/JJR
U.S./NNP
proposal/NN
did/VBD
,/,
the/DT
new/JJ
package/NN
calls/VBZ
for/IN
the/DT
elimination/NN
of/IN
only/RB
the/DT
most/JJS
tradedistorting/JJ
ones/NNS
./.
Less/RBR
objectionable/JJ
ones/NNS
would/MD
be/VB
subject/JJ
only/RB
to/TO
some/DT
restraints/NNS
,/,
and/CC
others/NNS
with/IN
a/DT
``/``
relatively/RB
minor/JJ
trade/NN
impact/NN
''/''
would/MD
be/VB
allowed/VBN
to/TO
continue/VB
under/IN
certain/JJ
conditions/NNS
./.
The/DT
new/JJ
U.S./NNP
plan/NN
also/RB
would/MD
establish/VB
procedures/NNS
to/TO
prevent/VB
countries/NNS
from/IN
using/VBG
health/NN
and/CC
sanitation/NN
rules/NNS
to/TO
impede/VB
trade/NN
arbitrarily/RB
./.
The/DT
goal/NN
would/MD
be/VB
to/TO
resolve/VB
disputes/NNS
such/JJ
as/IN
one/CD
prompted/VBN
by/IN
the/DT
European/NNP
Community/NNP
's/POS
current/JJ
attempt/NN
to/TO
bar/NN
imports/NNS
of/IN
beef/NN
from/IN
hormone-treated/JJ
U.S./NNP
cattle/NNS
./.
The/DT
U.S./NNP
contends/VBZ
that/IN
the/DT
rules/NNS
are/VBP
n't/RB
justified/VBN
on/IN
health/NN
grounds/NNS
./.
To/TO
encourage/VB
more/JJR
competition/NN
among/IN
exporting/VBG
countries/NNS
,/,
the/DT
U.S./NNP
is/VBZ
proposing/VBG
that/IN
export/NN
subsidies/NNS
,/,
including/VBG
tax/NN
incentives/NNS
for/IN
exporters/NNS
,/,
be/VB
phased/VBN
out/RP
in/IN
five/CD
years/NNS
./.
Procter/NNP
&/CC
Gamble/NNP
Co./NNP
,/,
helped/VBN
by/IN
a/DT
gain/NN
from/IN
a/DT
lawsuit/NN
settlement/NN
and/CC
continued/JJ
growth/NN
overseas/RB
,/,
posted/VBD
a/DT
38/CD
%/NN
rise/NN
in/IN
fiscal/JJ
first-quarter/JJ
net/JJ
income/NN
./.
Net/NN
for/IN
the/DT
quarter/NN
ended/VBD
Sept./NNP
30/CD
climbed/VBD
to/TO
$/$
551/CD
million/CD
,/,
or/CC
$/$
1.66/CD
a/DT
share/NN
,/,
from/IN
$/$
400/CD
million/CD
,/,
or/CC
$/$
1.18/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Per-share/JJ
figures/NNS
have/VBP
been/VBN
adjusted/VBN
for/IN
a/DT
2-for-1/JJ
stock/NN
split/NN
effective/JJ
Oct./NNP
20/CD
./.
Sales/NNS
increased/VBD
6/CD
%/NN
to/TO
$/$
5.58/CD
billion/CD
from/IN
$/$
5.27/CD
billion/CD
./.
Earnings/NNS
at/IN
the/DT
consumer-products/NNS
giant/NN
were/VBD
boosted/VBN
by/IN
a/DT
gain/NN
of/IN
$/$
125/CD
million/CD
,/,
or/CC
about/RB
25/CD
cents/NNS
a/DT
share/NN
,/,
stemming/VBG
from/IN
last/JJ
month/NN
's/POS
settlement/NN
of/IN
litigation/NN
with/IN
three/CD
of/IN
P&G/NNP
's/POS
competitors/NNS
over/IN
patents/NNS
on/IN
P&G/NNP
's/POS
Duncan/NNP
Hines/NNP
cookies/NNS
./.
Excluding/VBG
the/DT
gain/NN
,/,
P&G/NNP
's/POS
earnings/NNS
were/VBD
close/RB
to/TO
analysts/NNS
'/POS
predictions/NNS
of/IN
about/RB
$/$
1.40/CD
a/DT
share/NN
for/IN
the/DT
quarter/NN
./.
Wall/NNP
Street/NNP
had/VBD
expected/VBN
a/DT
modest/JJ
rise/NN
in/IN
the/DT
company/NN
's/POS
domestic/JJ
sales/NNS
and/CC
earnings/NNS
,/,
and/CC
more/RBR
substantial/JJ
increases/NNS
in/IN
overseas/JJ
results/NNS
./.
One/CD
factor/NN
helping/VBG
sales/NNS
and/CC
earnings/NNS
was/VBD
a/DT
3/CD
%/NN
price/NN
rise/NN
for/IN
most/JJS
P&G/NNP
products/NNS
,/,
except/IN
coffee/NN
,/,
analysts/NNS
said/VBD
./.
Unit/NN
volume/NN
,/,
or/CC
amount/NN
of/IN
products/NNS
shipped/VBN
,/,
rose/VBD
about/RB
11/CD
%/NN
in/IN
the/DT
international/JJ
segment/NN
,/,
with/IN
P&G/NNP
continuing/VBG
to/TO
win/VB
market/NN
share/NN
in/IN
Japan/NNP
's/POS
diaper/NN
and/CC
detergent/NN
markets/NNS
./.
Jay/NNP
Freedman/NNP
,/,
analyst/NN
with/IN
Kidder/NNP
,/,
Peabody/NNP
&/CC
Co./NNP
,/,
said/VBD
P&G/NNP
's/POS
Always/NNP
sanitary/JJ
napkin/NN
,/,
sold/VBN
under/IN
the/DT
Whisper/NNP
name/NN
in/IN
Japan/NNP
,/,
has/VBZ
firmly/RB
established/VBN
itself/PRP
as/IN
a/DT
leading/JJ
brand/NN
./.
He/PRP
figures/VBZ
P&G/NNP
will/MD
expand/VB
its/PRP$
personal-care/JJ
product/NN
line/NN
in/IN
Japan/NNP
to/TO
``/``
continue/VB
that/DT
momentum/NN
./.
''/''
P&G/NNP
's/POS
U.S./NNP
shipments/NNS
were/VBD
up/RB
just/RB
1/CD
%/NN
,/,
partly/RB
because/IN
the/DT
company/NN
decided/VBD
to/TO
shift/VB
more/JJR
promotions/NNS
and/CC
sales/NNS
for/IN
health/NN
and/CC
beauty/NN
products/NNS
to/TO
the/DT
fiscal/JJ
second/JJ
quarter/NN
./.
Hugh/NNP
Zurkuhlen/NNP
,/,
analyst/NN
with/IN
Salomon/NNP
Bros./NNP
,/,
predicts/VBZ
the/DT
shift/NN
will/MD
mean/VB
P&G/NNP
's/POS
sales/NNS
growth/NN
in/IN
the/DT
second/JJ
quarter/NN
will/MD
be/VB
``/``
in/IN
the/DT
double/JJ
digits/NNS
./.
''/''
Also/RB
slowing/VBG
growth/NN
in/IN
the/DT
U.S./NNP
were/VBD
lackluster/JJ
results/NNS
for/IN
P&G/NNP
's/POS
cooking/NN
oils/NNS
,/,
which/WDT
had/VBD
a/DT
strong/JJ
year-earlier/JJ
first/JJ
quarter/NN
./.
Last/JJ
year/NN
's/POS
drought/NN
in/IN
the/DT
Midwest/NNP
prompted/VBD
retailers/NNS
to/TO
stock/VB
up/RP
on/IN
oils/NNS
ahead/RB
of/IN
anticipated/JJ
price/NN
increases/NNS
,/,
boosting/VBG
sales/NNS
for/IN
Crisco/NNP
and/CC
Puritan/NNP
oils/NNS
,/,
analysts/NNS
said/VBD
./.
For/IN
fiscal/JJ
1990/CD
,/,
analysts/NNS
expect/VBP
P&G/NNP
's/POS
sales/NNS
to/TO
continue/VB
to/TO
grow/VB
,/,
with/IN
earnings/NNS
climbing/VBG
between/IN
15/CD
%/NN
and/CC
20/CD
%/NN
./.
Lynne/NNP
Hyman/NNP
,/,
vice/NN
president/NN
of/IN
equity/NN
research/NN
for/IN
First/NNP
Boston/NNP
Corp./NNP
,/,
expects/VBZ
P&G/NNP
to/TO
post/VB
net/NN
of/IN
about/RB
$/$
4.20/CD
a/DT
share/NN
,/,
on/IN
a/DT
post-split/JJ
basis/NN
./.
``/``
But/CC
I/PRP
'm/VBP
recognizing/VBG
there/EX
's/VBZ
a/DT
good/JJ
chance/NN
they/PRP
'll/MD
do/VB
a/DT
bit/NN
better/RBR
than/IN
that/DT
,/,
''/''
she/PRP
says/VBZ
./.
In/IN
fiscal/JJ
1989/CD
,/,
P&G/NNP
earned/VBD
$/$
3.56/CD
a/DT
share/NN
,/,
adjusted/VBN
for/IN
the/DT
stock/NN
split/NN
./.
One/CD
big/JJ
factor/NN
affecting/VBG
the/DT
fiscal/JJ
second/JJ
half/NN
will/MD
be/VB
the/DT
new/JJ
stewardship/NN
of/IN
Edwin/NNP
L./NNP
Artzt/NNP
,/,
who/WP
becomes/VBZ
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
in/IN
January/NNP
./.
Because/IN
of/IN
his/PRP$
remarkable/JJ
success/NN
turning/VBG
around/RP
P&G/NNP
's/POS
international/JJ
operations/NNS
,/,
analysts/NNS
have/VBP
high/JJ
hopes/NNS
for/IN
his/PRP$
tenure/NN
./.
``/``
If/IN
he/PRP
does/VBZ
to/TO
the/DT
domestic/JJ
operations/NNS
what/WP
he/PRP
did/VBD
internationally/RB
,/,
''/''
says/VBZ
Mr./NNP
Zurkuhlen/NNP
,/,
``/``
this/DT
company/NN
will/MD
earn/VB
$/$
6/CD
or/CC
$/$
7/CD
a/DT
share/NN
in/IN
a/DT
few/JJ
years/NNS
./.
''/''
The/DT
Voting/NNP
Rights/NNP
Act/NNP
of/IN
1965/CD
was/VBD
enacted/VBN
to/TO
keep/VB
the/DT
promise/NN
of/IN
the/DT
Fifteenth/NNP
Amendment/NNP
and/CC
enable/VB
Southern/JJ
blacks/NNS
to/TO
go/VB
to/TO
the/DT
polls/NNS
,/,
unhindered/JJ
by/IN
literacy/NN
tests/NNS
and/CC
other/JJ
exclusionary/JJ
devices/NNS
./.
Twenty-five/CD
years/NNS
later/RB
,/,
the/DT
Voting/NNP
Rights/NNP
Act/NNP
has/VBZ
been/VBN
transformed/VBN
by/IN
the/DT
courts/NNS
and/CC
the/DT
Justice/NNP
Department/NNP
into/IN
a/DT
program/NN
of/IN
racial/JJ
gerrymandering/NN
designed/VBN
to/TO
increase/VB
the/DT
number/NN
of/IN
blacks/NNS
and/CC
other/JJ
minorities/NNS
--/:
Hispanics/NNPS
,/,
Asians/NNPS
and/CC
native/JJ
Americans/NNPS
--/:
holding/VBG
elective/JJ
office/NN
./.
In/IN
the/DT
1980s/CD
,/,
the/DT
Justice/NNP
Department/NNP
and/CC
lower/JJR
federal/JJ
courts/NNS
that/WDT
enforce/VBP
the/DT
Voting/NNP
Rights/NNP
Act/NNP
have/VBP
required/VBN
state/NN
legislatures/NNS
and/CC
municipal/JJ
governments/NNS
to/TO
create/VB
the/DT
maximum/JJ
number/NN
of/IN
``/``
safe/JJ
''/''
minority/NN
election/NN
districts/NNS
--/:
districts/NNS
where/WRB
minorities/NNS
form/VBP
between/IN
65/CD
%/NN
and/CC
80/CD
%/NN
of/IN
the/DT
voting/VBG
population/NN
./.
The/DT
program/NN
has/VBZ
even/RB
been/VBN
called/VBN
upon/RP
to/TO
create/VB
``/``
safe/JJ
''/''
white/JJ
electoral/JJ
districts/NNS
in/IN
municipalities/NNS
where/WRB
whites/NNS
are/VBP
the/DT
minority/NN
./.
Although/IN
Section/NNP
2/CD
of/IN
the/DT
act/NN
expressly/RB
disclaims/VBZ
requiring/VBG
that/IN
minorities/NNS
win/VB
a/DT
proportional/JJ
share/NN
of/IN
elective/JJ
offices/NNS
,/,
few/JJ
municipal/NN
and/CC
state/NN
government/NN
plans/NNS
achieve/VBP
preclearance/NN
by/IN
the/DT
Justice/NNP
Department/NNP
or/CC
survive/VBP
the/DT
scrutiny/NN
of/IN
the/DT
lower/JJR
federal/JJ
courts/NNS
unless/IN
they/PRP
carve/VBP
out/RP
as/RB
many/JJ
solidly/RB
minority/NN|JJ
districts/NNS
as/IN
possible/JJ
./.
The/DT
new/JJ
goal/NN
of/IN
the/DT
Voting/NNP
Rights/NNP
Act/NNP
--/:
more/JJR
minorities/NNS
in/IN
political/JJ
office/NN
--/:
is/VBZ
laudable/JJ
./.
For/IN
the/DT
political/JJ
process/NN
to/TO
work/VB
,/,
all/DT
citizens/NNS
,/,
regardless/RB
of/IN
race/NN
,/,
must/MD
feel/VB
represented/VBN
./.
One/CD
essential/JJ
indicator/NN
that/IN
they/PRP
are/VBP
is/VBZ
that/IN
members/NNS
of/IN
minority/NN
groups/NNS
get/VBP
elected/VBN
to/TO
public/JJ
office/NN
with/IN
reasonable/JJ
frequency/NN
./.
As/IN
is/VBZ
,/,
blacks/NNS
constitute/VBP
12/CD
%/NN
of/IN
the/DT
population/NN
,/,
but/CC
fewer/JJR
than/IN
2/CD
%/NN
of/IN
elected/JJ
leaders/NNS
./.
But/CC
racial/JJ
gerrymandering/NN
is/VBZ
not/RB
the/DT
best/JJS
way/NN
to/TO
accomplish/VB
that/DT
essential/JJ
goal/NN
./.
It/PRP
is/VBZ
a/DT
quick/JJ
fix/NN
for/IN
a/DT
complex/JJ
problem/NN
./.
Far/RB
from/IN
promoting/VBG
a/DT
commonality/NN
of/IN
interests/NNS
among/IN
black/JJ
,/,
white/JJ
,/,
Hispanic/JJ
and/CC
other/JJ
minority/NN
voters/NNS
,/,
drawing/VBG
the/DT
district/NN
lines/NNS
according/VBG
to/TO
race/NN
suggests/VBZ
that/DT
race/NN
is/VBZ
the/DT
voter/NN
's/POS
and/CC
the/DT
candidate/NN
's/VBZ
most/RBS
important/JJ
trait/NN
./.
Such/PDT
a/DT
policy/NN
implies/VBZ
that/IN
only/RB
a/DT
black/JJ
politician/NN
can/MD
speak/VB
for/IN
a/DT
black/JJ
person/NN
,/,
and/CC
that/IN
only/RB
a/DT
white/JJ
politician/NN
can/MD
govern/VB
on/IN
behalf/NN
of/IN
a/DT
white/JJ
one/CD
./.
Examples/NNS
of/IN
the/DT
divisive/JJ
effects/NNS
of/IN
racial/JJ
gerrymandering/NN
can/MD
be/VB
seen/VBN
in/IN
two/CD
cities/NNS
--/:
New/NNP
York/NNP
and/CC
Birmingham/NNP
,/,
Ala/NNP
./.
When/WRB
they/PRP
reapportion/VBP
their/PRP$
districts/NNS
after/IN
the/DT
1990/CD
census/NN
,/,
every/DT
other/JJ
municipality/NN
and/CC
state/NN
in/IN
the/DT
country/NN
will/MD
face/VB
this/DT
issue/NN
./.
New/NNP
York/NNP
City/NNP
:/:
Racial/JJ
gerrymandering/NN
has/VBZ
been/VBN
a/DT
familiar/JJ
policy/NN
in/IN
New/NNP
York/NNP
City/NNP
since/IN
1970/CD
,/,
when/WRB
Congress/NNP
first/RB
amended/VBD
the/DT
Voting/NNP
Rights/NNP
Act/NNP
to/TO
expand/VB
its/PRP$
reach/NN
beyond/IN
the/DT
Southern/JJ
states/NNS
./.
In/IN
1972/CD
,/,
the/DT
Justice/NNP
Department/NNP
required/VBD
that/IN
the/DT
electoral/JJ
map/NN
in/IN
the/DT
borough/NN
of/IN
Brooklyn/NNP
be/VB
redrawn/JJ
to/TO
concentrate/VB
black/JJ
and/CC
Hispanic/JJ
votes/NNS
,/,
despite/IN
protests/NNS
that/IN
the/DT
new/JJ
electoral/JJ
boundaries/NNS
would/MD
split/VB
a/DT
neighborhood/NN
of/IN
Hasidic/JJ
Jews/NNPS
into/IN
two/CD
different/JJ
districts/NNS
./.
This/DT
year/NN
,/,
a/DT
commission/NN
appointed/VBN
by/IN
the/DT
mayor/NN
to/TO
revise/VB
New/NNP
York/NNP
's/POS
system/NN
of/IN
government/NN
completed/VBD
a/DT
new/JJ
charter/NN
,/,
expanding/VBG
the/DT
City/NNP
Council/NNP
to/TO
51/CD
from/IN
35/CD
members/NNS
./.
Sometime/RB
in/IN
1991/CD
,/,
as/RB
soon/RB
as/IN
the/DT
1990/CD
census/NN
becomes/VBZ
available/JJ
,/,
a/DT
redistricting/NN
panel/NN
will/MD
redraw/VB
the/DT
City/NNP
Council/NNP
district/NN
lines/NNS
./.
The/DT
Charter/NNP
Revision/NNP
Commission/NNP
has/VBZ
made/VBN
it/PRP
clear/JJ
that/IN
in/IN
response/NN
to/TO
the/DT
expectations/NNS
of/IN
the/DT
Justice/NNP
Department/NNP
and/CC
the/DT
commission/NN
's/POS
own/JJ
commitment/NN
to/TO
enhancing/VBG
minority/NN
political/JJ
leadership/NN
,/,
the/DT
new/JJ
district/NN
lines/NNS
will/MD
be/VB
drawn/VBN
to/TO
maximize/VB
the/DT
number/NN
of/IN
solidly/RB
minority/NN|JJ
districts/NNS
./.
Blacks/NNPS
and/CC
Hispanics/NNPS
currently/RB
make/VBP
up/RP
38/CD
%/NN
of/IN
the/DT
city/NN
's/POS
population/NN
and/CC
hold/VBP
only/RB
25/CD
%/NN
of/IN
the/DT
seats/NNS
on/IN
the/DT
council/NN
./.
Several/JJ
of/IN
the/DT
city/NN
's/POS
black/JJ
leaders/NNS
,/,
including/VBG
Democratic/JJ
mayoral/JJ
nominee/NN
David/NNP
Dinkins/NNP
,/,
have/VBP
spoken/VBN
out/RP
for/IN
racial/JJ
gerrymandering/NN
to/TO
accord/VB
blacks/NNS
and/CC
Hispanics/NNPS
``/``
the/DT
fullest/JJS
opportunity/NN
for/IN
representation/NN
./.
''/''
In/IN
this/DT
connection/NN
,/,
it/PRP
is/VBZ
important/JJ
to/TO
note/VB
that/IN
several/JJ
members/NNS
of/IN
New/NNP
York/NNP
's/POS
sitting/VBG|JJ
City/NNP
Council/NNP
represent/VBP
heterogeneous/JJ
districts/NNS
that/WDT
bring/VBP
together/RB
sizable/JJ
black/JJ
,/,
Hispanic/JJ
,/,
and/CC
non-Hispanic/JJ
white/JJ
populations/NNS
--/:
Carolyn/NNP
Maloney/NNP
's/POS
8th/JJ
district/NN
in/IN
northern/JJ
Manhattan/NNP
and/CC
the/DT
south/JJ
Bronx/NNP
and/CC
Susan/NNP
Alter/NNP
's/POS
25th/JJ
district/NN
in/IN
Brooklyn/NNP
,/,
for/IN
example/NN
./.
To/TO
win/VB
their/PRP$
seats/NNS
on/IN
the/DT
council/NN
,/,
these/DT
political/JJ
leaders/NNS
have/VBP
had/VBD
to/TO
listen/VB
to/TO
all/PDT
the/DT
voices/NNS
in/IN
their/PRP$
district/NN
and/CC
devise/VB
public/JJ
policies/NNS
that/WDT
would/MD
benefit/VB
all/DT
./.
Often/RB
they/PRP
have/VBP
found/VBN
that/IN
the/DT
relevant/JJ
issue/NN
is/VBZ
not/RB
race/NN
,/,
but/CC
rather/RB
housing/NN
,/,
crime/NN
prevention/NN
or/CC
education/NN
./.
Birmingham/NNP
,/,
Ala./NNP
:/:
The/DT
unusual/JJ
situation/NN
in/IN
Birmingham/NNP
vividly/RB
illustrates/VBZ
the/DT
divisive/JJ
consequences/NNS
of/IN
carving/VBG
out/RP
safe/JJ
districts/NNS
for/IN
racial/JJ
minorities/NNS
./.
In/IN
Birmingham/NNP
,/,
which/WDT
is/VBZ
57/CD
%/NN
black/JJ
,/,
whites/NNS
are/VBP
the/DT
minority/NN
./.
Insisting/VBG
that/IN
they/PRP
are/VBP
protected/VBN
by/IN
the/DT
Voting/NNP
Rights/NNP
Act/NNP
,/,
a/DT
group/NN
of/IN
whites/NNS
brought/VBD
a/DT
federal/JJ
suit/NN
in/IN
1987/CD
to/TO
demand/VB
that/IN
the/DT
city/NN
abandon/VB
at-large/JJ
voting/NN
for/IN
the/DT
nine/CD
member/NN
City/NNP
Council/NNP
and/CC
create/VB
nine/CD
electoral/JJ
districts/NNS
,/,
including/VBG
four/CD
safe/JJ
white/JJ
districts/NNS
./.
The/DT
white/JJ
group/NN
argued/VBD
that/IN
whites/NNS
were/VBD
not/RB
fully/RB
and/CC
fairly/RB
represented/VBN
,/,
because/IN
in/IN
city-wide/JJ
elections/NNS
only/RB
black/JJ
candidates/NNS
or/CC
white/JJ
candidates/NNS
who/WP
catered/VBD
to/TO
``/``
black/JJ
interests/NNS
''/''
could/MD
win/VB
./.
No/DT
federal/JJ
court/NN
has/VBZ
ruled/VBN
that/IN
the/DT
Voting/NNP
Rights/NNP
Act/NNP
protects/VBZ
a/DT
white/JJ
minority/NN
,/,
but/CC
in/IN
June/NNP
the/DT
Justice/NNP
Department/NNP
approved/VBD
a/DT
districting/NN
plan/NN
for/IN
Birmingham/NNP
that/WDT
carves/VBZ
out/RP
three/CD
white-majority/JJ
districts/NNS
and/CC
six/CD
black-majority/JJ
districts/NNS
./.
Richard/NNP
Arrington/NNP
,/,
Birmingham/NNP
's/POS
black/JJ
mayor/NN
,/,
lamented/VBD
the/DT
consequences/NNS
./.
``/``
In/IN
the/DT
past/NN
,/,
people/NNS
who/WP
had/VBD
to/TO
run/VB
for/IN
office/NN
had/VBD
to/TO
moderate/VB
their/PRP$
views/NNS
because/IN
they/PRP
could/MD
n't/RB
afford/VB
to/TO
offend/VB
blacks/NNS
or/CC
whites/NNS
,/,
''/''
he/PRP
said/VBD
./.
``/``
Now/RB
you/PRP
go/VBP
to/TO
districts/NNS
,/,
you/PRP
're/VBP
likely/JJ
to/TO
get/VB
candidates/NNS
whose/WP$
views/NNS
are/VBP
more/RBR
extreme/JJ
,/,
white/JJ
and/CC
black/JJ
,/,
on/IN
racial/JJ
issues/NNS
./.
''/''
Two/CD
hundred/CD
years/NNS
ago/RB
,/,
critics/NNS
of/IN
the/DT
new/JJ
United/NNP
States/NNP
Constitution/NNP
warned/VBD
that/IN
the/DT
electoral/JJ
districts/NNS
for/IN
Congress/NNP
were/VBD
too/RB
large/JJ
and/CC
encompassed/VBD
too/RB
many/JJ
different/JJ
economic/JJ
interests/NNS
./.
A/DT
small/JJ
farmer/NN
and/CC
a/DT
seaport/NN
merchant/NN
could/MD
not/RB
be/VB
represented/VBN
by/IN
the/DT
same/JJ
spokesman/NN
,/,
they/PRP
said/VBD
./.
But/CC
James/NNP
Madison/NNP
refuted/VBD
that/DT
argument/NN
in/IN
one/CD
of/IN
the/DT
most/RBS
celebrated/JJ
political/JJ
treatises/NNS
ever/RB
written/VBN
,/,
No./NNP
10/CD
of/IN
the/DT
Federalist/NNP
Papers/NNP
./.
Madison/NNP
explained/VBD
that/IN
a/DT
representative/NN
's/POS
duty/NN
was/VBD
to/TO
speak/VB
not/RB
for/IN
the/DT
narrow/JJ
interests/NNS
of/IN
one/CD
group/NN
but/CC
instead/RB
for/IN
the/DT
common/JJ
good/NN
./.
Large/JJ
,/,
heterogeneous/JJ
election/NN
districts/NNS
would/MD
encourage/VB
good/JJ
government/NN
,/,
said/VBD
Madison/NNP
,/,
because/IN
a/DT
representative/NN
would/MD
be/VB
compelled/VBN
to/TO
serve/VB
the/DT
interests/NNS
of/IN
all/PDT
his/PRP$

constituents/NNS
and/CC
be/VB
servile/JJ
to/TO
none/NN
./.
Madison/NNP
's/POS
noble/JJ
and/CC
unifying/JJ
vision/NN
of/IN
the/DT
representative/NN
still/RB
can/MD
guide/VB
us/PRP
./.
As/RB
long/RB
as/IN
we/PRP
believe/VBP
that/IN
all/DT
Americans/NNPS
,/,
of/IN
every/DT
race/NN
and/CC
ethnic/JJ
background/NN
,/,
have/VBP
common/JJ
interests/NNS
and/CC
can/MD
live/VB
together/RB
cooperatively/RB
,/,
our/PRP$
political/JJ
map/NN
should/MD
reflect/VB
our/PRP$
belief/NN
./.
Racial/JJ
gerrymandering/NN
--/:
creating/VBG
separate/JJ
black/JJ
and/CC
white/JJ
districts/NNS
--/:
says/VBZ
that/IN
we/PRP
have/VBP
discarded/VBN
that/DT
belief/NN
in/IN
our/PRP$
ability/NN
to/TO
live/VB
together/RB
and/CC
govern/VB
ourselves/PRP
as/IN
one/CD
people/NNS
./.
Ms./NNP
McCaughey/NNP
is/VBZ
a/DT
constitutional/JJ
scholar/NN
at/IN
the/DT
Center/NNP
for/IN
the/DT
Study/NNP
of/IN
the/DT
Presidency/NNP
in/IN
New/NNP
York/NNP
./.
The/DT
Justice/NNP
Department/NNP
has/VBZ
distributed/VBN
these/DT
new/JJ
guidelines/NNS
for/IN
U.S./NNP
Attorneys/NNP
prosecuting/VBG
RICO/NNP
cases/NNS
./.
A/DT
related/JJ
editorial/NN
appears/VBZ
today/NN
./.
Under/IN
{/(
RICO/NNP
the/DT
government/NN
may/MD
seek/VB
a/DT
temporary/JJ
restraining/NN
order/NN
TRO/NN
the/DT
filing/NN
of/IN
a/DT
RICO/NNP
indictment/NN
,/,
in/IN
order/NN
to/TO
preserve/VB
all/DT
forfeitable/JJ
assets/NNS
until/IN
the/DT
trial/NN
is/VBZ
completed/VBN
and/CC
judgment/NN
entered/VBN
./.
Such/JJ
orders/NNS
can/MD
have/VB
a/DT
wide-ranging/JJ
impact/NN
on/IN
third/JJ
parties/NNS
who/WP
do/VBP
business/NN
with/IN
the/DT
defendants/NNS
,/,
including/VBG
clients/NNS
,/,
vendors/NNS
,/,
banks/NNS
,/,
investors/NNS
,/,
creditors/NNS
,/,
dependents/NNS
,/,
and/CC
others/NNS
./.
Some/DT
highly/RB
publicized/VBN
cases/NNS
involving/VBG
RICO/NNP
TROs/NNS
have/VBP
been/VBN
the/DT
subject/NN
of/IN
considerable/JJ
criticism/NN
in/IN
the/DT
press/NN
,/,
because/IN
of/IN
a/DT
perception/NN
that/IN
pre-trial/JJ
freezing/NN
of/IN
assets/NNS
is/VBZ
tantamount/JJ
to/TO
a/DT
seizure/NN
of/IN
property/NN
without/IN
due/JJ
process/NN
./.
In/IN
order/NN
to/TO
ensure/VB
that/IN
the/DT
rights/NNS
of/IN
all/DT
interested/JJ
parties/NNS
are/VBP
protected/VBN
,/,
the/DT
Criminal/NNP
Division/NNP
has/VBZ
instituted/VBN
the/DT
following/JJ
requirements/NNS
to/TO
control/VB
the/DT
use/NN
of/IN
TROs/NNS
in/IN
RICO/NNP
prosecutions/NNS
./.
It/PRP
should/MD
be/VB
noted/VBN
that/IN
these/DT
requirements/NNS
are/VBP
in/IN
addition/NN
to/TO
any/DT
other/JJ
existing/JJ
requirements/NNS
,/,
such/JJ
as/IN
review/NN
by/IN
the/DT
Asset/NNP
Forfeiture/NNP
Office/NNP
./.
1/LS
./.
As/IN
part/NN
of/IN
the/DT
approval/NN
process/NN
for/IN
RICO/NNP
prosecutions/NNS
,/,
the/DT
prosecutor/NN
must/MD
submit/VB
any/DT
proposed/JJ
forfeiture/NN
TRO/NN
for/IN
review/NN
by/IN
the/DT
Organized/NNP
Crime/NNP
and/CC
Racketeering/NNP
Section/NNP
./.
The/DT
prosecutor/NN
must/MD
show/VB
that/IN
less-intrusive/JJ
remedies/NNS
bonds/NNS
the/DT
assets/NNS
for/IN
forfeiture/NN
in/IN
the/DT
event/NN
of/IN
a/DT
conviction/NN
./.
2/LS
./.
In/IN
seeking/VBG
approval/NN
of/IN
a/DT
TRO/NN
,/,
the/DT
prosecutor/NN
must/MD
articulate/VB
any/DT
anticipated/JJ
impact/NN
that/DT
forfeiture/NN
and/CC
the/DT
TRO/NN
would/MD
have/VB
on/IN
innocent/JJ
third/JJ
parties/NNS
,/,
balanced/VBN
against/IN
the/DT
government/NN
's/POS
need/NN
to/TO
preserve/VB
the/DT
assets/NNS
./.
3/LS
./.
In/IN
deciding/VBG
whether/IN
forfeiture/NN
a/DT
TRO/NN
the/DT
Section/NN
will/MD
consider/VB
the/DT
nature/NN
and/CC
severity/NN
of/IN
the/DT
offense/NN
;/:
the/DT
government/NN
's/POS
policy/NN
is/VBZ
not/RB
to/TO
seek/VB
the/DT
fullest/JJS
forfeiture/NN
permissible/NN
under/IN
the/DT
law/NN
where/WRB
that/DT
forfeiture/NN
would/MD
be/VB
disproportionate/JJ
to/TO
the/DT
defendant/NN
's/POS
crime/NN
./.
4/LS
./.
When/WRB
a/DT
RICO/NNP
TRO/NN
is/VBZ
being/VBG
sought/VBN
,/,
the/DT
prosecutor/NN
is/VBZ
required/VBN
,/,
at/IN
the/DT
earliest/JJS
appropriate/JJ
time/NN
,/,
to/TO
state/VB
publicly/RB
that/IN
the/DT
government/NN
's/POS
request/NN
for/IN
a/DT
TRO/NN
,/,
and/CC
eventual/JJ
forfeiture/NN
,/,
is/VBZ
made/VBN
in/IN
full/JJ
recognition/NN
of/IN
the/DT
rights/NNS
of/IN
third/JJ
parties/NNS
--/:
that/DT
is/VBZ
,/,
in/IN
requesting/VBG
the/DT
TRO/NN
,/,
the/DT
government/NN
will/MD
not/RB
seek/VB
to/TO
disrupt/VB
the/DT
normal/JJ
,/,
legitimate/JJ
business/NN
activities/NNS
of/IN
the/DT
defendant/NN
;/:
will/MD
not/RB
seek/VB
through/IN
use/NN
of/IN
the/DT
relation-back/JJ
doctrine/NN
to/TO
take/VB
from/IN
third/JJ
parties/NNS
assets/NNS
legitimately/RB
transferred/VBN
to/TO
them/PRP
;/:
will/MD
not/RB
seek/VB
to/TO
vitiate/VB
legitimate/JJ
business/NN
transactions/NNS
occurring/VBG
between/IN
the/DT
defendant/NN
and/CC
third/JJ
parties/NNS
;/:
and/CC
will/MD
,/,
in/IN
all/DT
other/JJ
respects/NNS
,/,
assist/VB
the/DT
court/NN
in/IN
ensuring/VBG
that/IN
the/DT
rights/NNS
of/IN
third/JJ
parties/NNS
are/VBP
protected/VBN
,/,
through/IN
proceeding/VBG
under/IN
{/(
RICO/NNP
The/DT
Division/NNP
expects/VBZ
that/IN
the/DT
prosecutor/NN
will/MD
announce/VB
these/DT
principles/NNS
either/CC
at/IN
the/DT
time/NN
the/DT
indictment/NN
is/VBZ
returned/VBN
or/CC
,/,
at/IN
the/DT
latest/JJS
,/,
at/IN
the/DT
first/JJ
proceeding/NN
before/IN
the/DT
court/NN
concerning/VBG
the/DT
TRO/NN
./.
Sales/NNS
of/IN
North/JJ
American-built/JJ
cars/NNS
and/CC
trucks/NNS
plunged/VBD
20.5/CD
%/NN
in/IN
mid-October/NNP
from/IN
a/DT
year/NN
earlier/RBR
,/,
as/IN
domestic/JJ
manufacturers/NNS
paid/VBD
the/DT
price/NN
for/IN
heavy/JJ
incentives/NNS
earlier/RBR
this/DT
year/NN
./.
``/``
People/NNS
are/VBP
waiting/VBG
for/IN
{/(
new/JJ
factory/NN
giveaways/NNS
,/,
''/''
said/VBD
Ben/NNP
Kaye/NNP
,/,
sales/NNS
manager/NN
of/IN
Bob/NNP
Brest/NNP
Auto/NNP
World/NNP
in/IN
Lynn/NNP
,/,
Mass./NNP
,/,
whose/WP$
sales/NNS
are/VBP
slow/JJ
./.
This/DT
trend/NN
appears/VBZ
to/TO
be/VB
especially/RB
true/JJ
at/IN
General/NNP
Motors/NNP
Corp./NNP
,/,
which/WDT
used/VBD
both/DT
dealer/NN
and/CC
consumer/NN
incentives/NNS
to/TO
ignite/VB
sales/NNS
in/IN
August/NNP
and/CC
September/NNP
./.
Since/IN
then/RB
,/,
deliveries/NNS
have/VBP
slumped/VBN
./.
GM/NNP
's/POS
car/NN
sales/NNS
dropped/VBD
24.8/CD
%/NN
in/IN
mid-October/NNP
to/TO
69,980/CD
,/,
while/IN
truck/NN
sales/NNS
fell/VBD
26/CD
%/NN
to/TO
37,860/CD
./.
GM/NNP
also/RB
had/VBD
dismal/JJ
results/NNS
in/IN
the/DT
first/JJ
10/CD
days/NNS
of/IN
the/DT
month/NN
,/,
while/IN
other/JJ
auto/NN
makers/NNS
reported/VBD
mixed/JJ
results/NNS
./.
All/DT
of/IN
the/DT
Big/NNP
Three/CD
suffered/VBD
in/IN
the/DT
just-ended/JJ
period/NN
,/,
however/RB
,/,
with/IN
sales/NNS
of/IN
all/DT
domestically/RB
made/VBN
cars/NNS
,/,
including/VBG
those/DT
built/VBN
at/IN
Japanese-managed/JJ
plants/NNS
,/,
falling/VBG
19/CD
%/NN
to/TO
158,863/CD
from/IN
a/DT
year/NN
earlier/RBR
./.
The/DT
seasonal/JJ
adjusted/JJ
annual/JJ
selling/NN
rate/NN
was/VBD
six/CD
million/CD
vehicles/NNS
,/,
a/DT
small/JJ
improvement/NN
from/IN
the/DT
5.8/CD
million/CD
rate/NN
of/IN
early/JJ
October/NNP
,/,
but/CC
a/DT
big/JJ
drop/NN
from/IN
the/DT
7.1/CD
million/CD
rate/NN
a/DT
year/NN
ago/RB
./.
Sales/NNS
of/IN
domestically/RB
made/VBN
trucks/NNS
also/RB
continued/VBD
to/TO
be/VB
sluggish/JJ
in/IN
mid-October/NNP
,/,
dropping/VBG
22.8/CD
%/NN
to/TO
94,543/CD
from/IN
a/DT
year/NN
ago/RB
./.
The/DT
Big/NNP
Three/CD
auto/NN
makers/NNS
already/RB
have/VB
slashed/VBN
fourth-quarter/JJ
production/NN
plans/NNS
10.4/CD
%/NN
below/IN
year-ago/JJ
levels/NNS
,/,
but/CC
that/DT
may/MD
not/RB
be/VB
enough/NN
to/TO
prevent/VB
inventories/NNS
from/IN
ballooning/VBG
if/IN
sales/NNS
do/VBP
n't/RB
improve/VB
./.
Industry/NN
analyst/NN
John/NNP
H./NNP
Qualls/NNP
,/,
a/DT
vice/NN
president/NN
with/IN
Hill/NNP
&/CC
Knowlton/NNP
in/IN
St./NNP
Louis/NNP
,/,
forecasts/VBZ
that/IN
domestic/JJ
auto/NN
makers/NNS
will/MD
have/VB
a/DT
93-day/JJ
supply/NN
of/IN
cars/NNS
at/IN
the/DT
end/NN
of/IN
the/DT
year/NN
,/,
even/RB
if/IN
car/NN
sales/NNS
improve/VBP
to/TO
a/DT
6.5/CD
million/CD
vehicle/NN
rate/NN
for/IN
the/DT
quarter/NN
./.
Ford/NNP
Motor/NNP
Co./NNP
reported/VBD
a/DT
21.2/CD
%/NN
drop/NN
in/IN
sales/NNS
of/IN
domestic-made/JJ
cars/NNS
to/TO
46,995/CD
and/CC
a/DT
24.2/CD
%/NN
drop/NN
in/IN
domestic/JJ
trucks/NNS
to/TO
31,143/CD
./.
The/DT
sales/NNS
are/VBP
being/VBG
dragged/VBD
down/RP
by/IN
a/DT
glut/NN
of/IN
1989/CD
vehicles/NNS
,/,
said/VBD
Joel/NNP
Pitcoff/NNP
,/,
a/DT
Ford/NNP
analyst/NN
./.
The/DT
earlier/JJR
use/NN
of/IN
incentives/NNS
depleted/VBD
the/DT
market/NN
of/IN
``/``
scavengers/NNS
''/''
for/IN
bargain-basement/JJ
1989/CD
cars/NNS
,/,
he/PRP
said/VBD
./.
Town/NNP
&/CC
Country/NNP
Ford/NNP
in/IN
Charlotte/NNP
,/,
N.C./NNP
,/,
still/RB
needs/VBZ
to/TO
move/VB
about/RB
850/CD
1989/CD
cars/NNS
and/CC
trucks/NNS
./.
Business/NN
had/VBD
been/VBN
fairly/RB
strong/JJ
until/IN
Hurricane/NNP
Hugo/NNP
hit/VBD
the/DT
area/NN
,/,
but/CC
has/VBZ
been/VBN
down/RB
since/RB
./.
Chrysler/NNP
Corp./NNP
also/RB
hit/VBD
the/DT
rocks/NNS
in/IN
mid-October/NNP
./.
The/DT
No./NN
3/CD
U.S./NNP
auto/NN
maker/NN
had/VBD
a/DT
23.7/CD
%/NN
plunge/NN
in/IN
car/NN
sales/NNS
to/TO
22,336/CD
and/CC
a/DT
17.5/CD
%/NN
drop/NN
in/IN
truck/NN
sales/NNS
to/TO
22,925/CD
,/,
which/WDT
include/VBP
its/PRP$
minivans/NNS
and/CC
Jeeps/NNS
./.
Honda/NNP
Motor/NNP
Co./NNP
,/,
which/WDT
continues/VBZ
to/TO
have/VB
short/JJ
supplies/NNS
of/IN
domestically/RB
made/VBN
Accords/NNPS
,/,
saw/VBD
its/PRP$
sales/NNS
of/IN
North/JJ
American-built/JJ
cars/NNS
fall/VB
14.1/CD
%/NN
to/TO
8,355/CD
./.
But/CC
sales/NNS
of/IN
domestic/JJ
cars/NNS
and/CC
trucks/NNS
at/IN
Nissan/NNP
Motor/NNP
Corp./NNP
rose/VBD
26.1/CD
%/NN
to/TO
5,651/CD
./.
A/DT
Nissan/NNP
spokesman/NN
attributed/VBD
the/DT
increase/NN
to/TO
the/DT
use/NN
of/IN
incentives/NNS
this/DT
year/NN
and/CC
not/RB
a/DT
year/NN
ago/RB
and/CC
to/TO
higher/JJR
fleet/NN
sales/NNS
./.
Toyota/NNP
Motor/NNP
Corp./NNP
,/,
which/WDT
opened/VBD
a/DT
plant/NN
in/IN
Georgetown/NNP
,/,
Ky./NNP
,/,
last/JJ
year/NN
,/,
saw/VBD
sales/NNS
triple/VB
to/TO
6,256/CD
vehicles/NNS
./.
a/SYM
-/:
Totals/NNS
include/VBP
only/RB
vehicle/NN
sales/NNS
reported/VBN
in/IN
the/DT
period/NN
./.
c/SYM
-/:
Domestic/JJ
car/NN
d/SYM
-/:
Percent/NN
change/NN
greater/JJR
than/IN
999/CD
%/NN
./.
x/SYM
-/:
There/EX
were/VBD
9/CD
selling/NN
days/NNS
in/IN
the/DT
most/RBS
recent/JJ
period/NN
and/CC
9/CD
a/DT
year/NN
earlier/RBR
./.
Percentage/NN
differences/NNS
based/VBN
on/IN
daily/JJ
sales/NNS
rate/NN
rather/RB
than/IN
sales/NNS
volume/NN
./.
Short/JJ
interest/NN
in/IN
Nasdaq/NNP
over-the-counter/JJ
stocks/NNS
rose/VBD
6/CD
%/NN
as/IN
of/IN
mid-October/NNP
,/,
its/PRP$
biggest/JJS
jump/NN
since/IN
6.3/CD
%/NN
last/JJ
April/NNP
./.
The/DT
most/RBS
recent/JJ
OTC/NNP
short/JJ
interest/NN
statistics/NNS
were/VBD
compiled/VBN
Oct./NNP
13/CD
,/,
the/DT
day/NN
the/DT
Nasdaq/NNP
composite/JJ
index/NN
slid/VBD
3/CD
%/NN
and/CC
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
tumbled/VBD
7/CD
%/NN
./.
The/DT
coincidence/NN
might/MD
lead/VB
to/TO
the/DT
conclusion/NN
that/IN
short-sellers/NNS
bet/VBD
heavily/RB
on/IN
that/DT
day/NN
that/IN
OTC/NNP
stocks/NNS
would/MD
decline/VB
further/RB
./.
As/IN
it/PRP
happens/VBZ
,/,
the/DT
Nasdaq/NNP
composite/NN
did/VBD
continue/VB
to/TO
fall/VB
for/IN
two/CD
days/NNS
after/IN
the/DT
initial/JJ
plunge/NN
./.
However/RB
,/,
the/DT
short/JJ
interest/NN
figures/NNS
reported/VBN
by/IN
brokerage/NN
and/CC
securities/NNS
clearing/NN
firms/NNS
to/TO
the/DT
National/NNP
Association/NNP
of/IN
Securities/NNP
Dealers/NNP
include/VBP
only/RB
those/DT
trades/NNS
completed/VBN
,/,
or/CC
settled/VBN
,/,
by/IN
Oct./NNP
13/CD
,/,
rather/RB
than/IN
trades/NNS
that/WDT
occurred/VBD
on/IN
that/DT
day/NN
,/,
according/VBG
to/TO
Gene/NNP
Finn/NNP
,/,
chief/JJ
economist/NN
for/IN
the/DT
NASD/NNP
./.
Generally/RB
,/,
it/PRP
takes/VBZ
five/CD
business/NN
days/NNS
to/TO
transfer/VB
stock/NN
and/CC
to/TO
take/VB
the/DT
other/JJ
steps/NNS
necessary/JJ
to/TO
settle/VB
a/DT
trade/NN
./.
The/DT
total/JJ
short/JJ
interest/NN
in/IN
Nasdaq/NNP
stocks/NNS
as/IN
of/IN
mid-October/NNP
was/VBD
237.1/CD
million/CD
shares/NNS
,/,
up/RB
from/IN
223.7/CD
million/CD
in/IN
September/NNP
but/CC
well/RB
below/IN
the/DT
record/JJ
level/NN
of/IN
279/CD
million/CD
shares/NNS
established/VBN
in/IN
July/NNP
1987/CD
./.
The/DT
sharp/JJ
rise/NN
in/IN
OTC/NNP
short/JJ
interest/NN
compares/VBZ
with/IN
the/DT
4.2/CD
%/NN
decline/NN
in/IN
short/JJ
interest/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
and/CC
the/DT
3/CD
%/NN
rise/NN
on/IN
the/DT
American/NNP
Stock/NNP
Exchange/NNP
during/IN
the/DT
September-October/NNP
period/NN
./.
Generally/RB
,/,
a/DT
short/JJ
seller/NN
expects/VBZ
a/DT
fall/NN
in/IN
a/DT
stock/NN
's/POS
price/NN
and/CC
aims/VBZ
to/TO
profit/VB
by/IN
selling/VBG
borrowed/VBN
shares/NNS
that/WDT
are/VBP
to/TO
be/VB
replaced/VBN
later/RB
;/:
the/DT
short/JJ
seller/NN
hopes/VBZ
the/DT
replacement/NN
shares/NNS
bought/VBN
later/RB
will/MD
cost/VB
less/JJR
than/IN
those/DT
that/WDT
were/VBD
sold/VBN
./.
Short/JJ
interest/NN
,/,
which/WDT
represents/VBZ
the/DT
number/NN
of/IN
shares/NNS
borrowed/VBN
and/CC
sold/VBN
,/,
but/CC
not/RB
yet/RB
replaced/VBN
,/,
can/MD
be/VB
a/DT
bad-expectations/JJ
barometer/NN
for/IN
many/JJ
stocks/NNS
./.
Among/IN
2,412/CD
of/IN
the/DT
largest/JJS
OTC/NNP
issues/NNS
,/,
short/JJ
interest/NN
rose/VBD
to/TO
196.8/CD
million/CD
shares/NNS
,/,
from/IN
185.7/CD
million/CD
in/IN
2,379/CD
stocks/NNS
in/IN
September/NNP
./.
Big/JJ
stocks/NNS
with/IN
large/JJ
short/JJ
interest/NN
gains/NNS
as/IN
of/IN
Oct./NNP
13/CD
included/VBD
First/NNP
Executive/NNP
,/,
Intel/NNP
,/,
Campeau/NNP
and/CC
LIN/NNP
Broadcasting/NNP
./.
Short/JJ
interest/NN
in/IN
First/NNP
Executive/NNP
,/,
an/DT
insurance/NN
issue/NN
,/,
rose/VBD
55/CD
%/NN
to/TO
3.8/CD
million/CD
./.
Intel/NNP
's/POS
short/JJ
interest/NN
jumped/VBD
42/CD
%/NN
,/,
while/IN
Campeau/NNP
's/POS
increased/VBD
62/CD
%/NN
./.
Intel/NNP
makes/VBZ
semiconductors/NNS
and/CC
Campeau/NNP
operates/VBZ
department-store/NN
chains/NNS
and/CC
is/VBZ
strained/VBN
for/IN
cash/NN
./.
Meritor/NNP
Savings/NNP
again/RB
had/VBD
the/DT
dubious/JJ
honor/NN
of/IN
being/VBG
the/DT
OTC/NNP
stock/NN
with/IN
the/DT
biggest/JJS
short/JJ
interest/NN
position/NN
on/IN
Nasdaq/NNP
./.
Meritor/NNP
has/VBZ
headed/VBN
the/DT
list/NN
since/IN
May/NNP
./.
First/NNP
Executive/NNP
and/CC
troubled/VBD
Valley/NNP
National/NNP
Corp./NNP
of/IN
Arizona/NNP
were/VBD
next/JJ
in/IN
line/NN
./.
Short/JJ
selling/NN
is/VBZ
n't/RB
necessarily/RB
bad/JJ
for/IN
the/DT
overall/JJ
market/NN
./.
Shorted/JJ
shares/NNS
must/MD
eventually/RB
be/VB
replaced/VBN
through/IN
buying/NN
./.
In/IN
addition/NN
,/,
changes/NNS
in/IN
short/JJ
interest/NN
in/IN
some/DT
stocks/NNS
may/MD
be/VB
caused/VBN
by/IN
arbitrage/NN
./.
For/IN
example/NN
,/,
an/DT
investor/NN
may/MD
seek/VB
to/TO
profit/VB
during/IN
some/DT
takeover/NN
situations/NNS
by/IN
buying/VBG
stock/NN
in/IN
one/CD
company/NN
involved/VBN
and/CC
shorting/VBG
the/DT
stock/NN
of/IN
the/DT
other/JJ
./.
Two/CD
big/JJ
stocks/NNS
involved/VBN
in/IN
takeover/NN
activity/NN
saw/VBD
their/PRP$
short/JJ
interest/NN
surge/NN
./.
Short/JJ
interest/NN
in/IN
the/DT
American/JJ
depositary/JJ
receipts/NNS
of/IN
Jaguar/NNP
,/,
the/DT
target/NN
of/IN
both/DT
Ford/NNP
Motor/NNP
and/CC
General/NNP
Motors/NNP
,/,
more/RBR
than/IN|RB
doubled/VBD
./.
Nasdaq/NNP
stocks/NNS
that/WDT
showed/VBD
a/DT
drop/NN
in/IN
short/JJ
interest/NN
included/VBD
Adobe/NNP
Systems/NNP
,/,
Class/NNP
A/NNP
shares/NNS
of/IN
Tele-Communications/NNP
and/CC
takeover/NN
targets/NNS
Lyphomed/NNP
and/CC
Jerrico/NNP
./.
The/DT
NASD/NNP
,/,
which/WDT
operates/VBZ
the/DT
Nasdaq/NNP
computer/NN
system/NN
on/IN
which/WDT
5,200/CD
OTC/NNP
issues/NNS
trade/NN
,/,
compiles/VBZ
short/JJ
interest/NN
data/NNS
in/IN
two/CD
categories/NNS
:/:
the/DT
approximately/RB
two-thirds/NNS
,/,
and/CC
generally/RB
biggest/JJS
,/,
Nasdaq/NNP
stocks/NNS
that/WDT
trade/VBP
on/IN
the/DT
National/NNP
Market/NNP
System/NNP
;/:
and/CC
the/DT
one-third/NN
,/,
and/CC
generally/RB
smaller/JJR
,/,
Nasdaq/NNP
stocks/NNS
that/WDT
are/VBP
n't/RB
a/DT
part/NN
of/IN
the/DT
system/NN
./.
Short/JJ
interest/NN
in/IN
1,327/CD
non-NMS/JJ
securities/NNS
totaled/VBD
40.3/CD
million/CD
shares/NNS
,/,
compared/VBN
with/IN
almost/RB
38/CD
million/CD
shares/NNS
in/IN
1,310/CD
issues/NNS
in/IN
September/NNP
./.
The/DT
October/NNP
short/JJ
interest/NN
represents/VBZ
1.04/CD
days/NNS
of/IN
average/JJ
daily/JJ
trading/NN
volume/NN
in/IN
the/DT
smaller/JJR
stocks/NNS
in/IN
the/DT
system/NN
for/IN
the/DT
reporting/NN
period/NN
,/,
compared/VBN
with/IN
0.94/CD
day/NN
a/DT
month/NN
ago/RB
./.
Among/IN
bigger/JJR
OTC/NNP
stocks/NNS
,/,
the/DT
figures/NNS
represent/VBP
2.05/CD
days/NNS
of/IN
average/JJ
daily/JJ
volume/NN
,/,
compared/VBN
with/IN
2.14/CD
days/NNS
in/IN
September/NNP
./.
The/DT
adjacent/JJ
tables/NNS
show/VBP
the/DT
issues/NNS
in/IN
which/WDT
a/DT
short/JJ
interest/NN
position/NN
of/IN
at/IN
least/JJS
50,000/CD
shares/NNS
existed/VBD
as/IN
of/IN
Oct./NNP
13/CD
or/CC
in/IN
which/WDT
there/EX
was/VBD
a/DT
short/JJ
position/NN
change/NN
of/IN
at/IN
least/JJS
25,000/CD
shares/NNS
since/IN
Sept./NNP
15/CD
tables/NNS
--/:
WSJ/NNP
Oct./NNP
25/CD
,/,
1989/CD
From/IN
the/DT
Sept./NNP
30-Oct/NNP
./.
4/CD
issue/NN
of/IN
The/NNP
Economist/NNP
:/:
What/WP
defeated/VBD
General/NNP
Aoun/NNP
was/VBD
not/RB
only/RB
the/DT
weight/NN
of/IN
the/DT
Syrian/JJ
army/NN
./.
The/DT
weight/NN
of/IN
Lebanon/NNP
's/POS
history/NN
was/VBD
also/RB
against/IN
him/PRP
;/:
and/CC
it/PRP
is/VBZ
a/DT
history/NN
Israel/NNP
is/VBZ
in/IN
danger/NN
of/IN
repeating/VBG
./.
Like/IN
Lebanon/NNP
,/,
and/CC
however/RB
unfairly/RB
,/,
Israel/NNP
is/VBZ
regarded/VBN
by/IN
the/DT
Arab/JJ
world/NN
as/IN
a/DT
colonial/JJ
aberration/NN
./.
Its/PRP$
best/JJS
hope/NN
of/IN
acceptance/NN
by/IN
its/PRP$
neighbours/NNS
lies/VBZ
in/IN
reaching/VBG
a/DT
settlement/NN
with/IN
the/DT
Palestinians/NNPS
./.
Like/IN
Lebanon/NNP
,/,
Israel/NNP
is/VBZ
being/VBG
remade/VB
by/IN
demography/NN
./.
In/IN
Greater/NNP
Israel/NNP
more/JJR
than/IN
half/PDT
the/DT
children/NNS
under/IN
six/CD
are/VBP
Muslims/NNPS
./.
Within/IN
25/CD
years/NNS
Jews/NNPS
will/MD
probably/RB
be/VB
the/DT
minority/NN
./.
Yet/RB
Israel/NNP
will/MD
neither/CC
share/VB
power/NN
with/IN
all/PDT
these/DT
Arabs/NNS
nor/CC
,/,
says/VBZ
its/PRP$
present/JJ
prime/JJ
minister/NN
,/,
redraw/VB
its/PRP$
borders/NNS
closer/RBR
to/TO
its/PRP$
pre-1967/JJ
Jewish/JJ
heartland/NN
./.
By/IN
not/RB
choosing/VBG
one/CD
of/IN
these/DT
options/NNS
,/,
Israelis/NNPS
will/MD
condemn/VB
themselves/PRP
,/,
as/IN
the/DT
Maronites/NNPS
did/VBD
,/,
to/TO
perpetual/JJ
war/NN
with/IN
the/DT
Muslims/NNPS
in/IN
their/PRP$
midst/NN
,/,
and/CC
so/RB
to/TO
the/DT
internal/JJ
erosion/NN
of/IN
their/PRP$
state/NN
./.
Unlike/IN
the/DT
Maronites/NNPS
,/,
Israel/NNP
's/POS
Jews/NNPS
will/MD
not/RB
let/VB
themselves/PRP
become/VB
the/DT
weakest/JJS
force/NN
in/IN
a/DT
system/NN
of/IN
private/JJ
armies/NNS
;/:
Jerusalem/NNP
will/MD
become/VB
Belfast/NNP
before/IN
it/PRP
becomes/VBZ
Beirut/NNP
./.
But/CC
that/DT
is/VBZ
not/RB
much/JJ
of/IN
a/DT
consolation/NN
to/TO
draw/VB
from/IN
the/DT
failure/NN
of/IN
General/NNP
Aoun/NNP
./.
The/DT
Nasdaq/NNP
over-the-counter/JJ
market/NN
did/VBD
n't/RB
fully/RB
recover/VB
from/IN
a/DT
selling/NN
stampede/NN
,/,
and/CC
closed/VBD
down/RB
1.2/CD
%/NN
./.
The/DT
effects/NNS
on/IN
the/DT
market/NN
of/IN
the/DT
mostly/RB
computer-driven/JJ
sell-off/NN
among/IN
exchange-listed/JJ
stocks/NNS
irked/VBD
many/JJ
market/NN
makers/NNS
,/,
who/WP
watched/VBD
the/DT
Nasdaq/NNP
Composite/NNP
Index/NNP
tumble/VB
in/IN
sympathy/NN
with/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
,/,
and/CC
then/RB
saw/VBD
it/PRP
get/VB
left/VBN
behind/RP
in/IN
the/DT
subsequent/JJ
rally/NN
./.
After/IN
plummeting/VBG
1.8/CD
%/NN
at/IN
one/CD
point/NN
during/IN
the/DT
day/NN
,/,
the/DT
composite/NN
rebounded/VBD
a/DT
little/JJ
,/,
but/CC
finished/VBD
down/RB
5.52/CD
,/,
at/IN
461.70/CD
./.
In/IN
contrast/NN
,/,
the/DT
industrial/JJ
average/NN
recovered/VBD
almost/RB
completely/RB
from/IN
its/PRP$
skid/NN
and/CC
closed/VBD
down/RB
0.1/CD
%/NN
./.
The/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
Composite/NNP
was/VBD
0.4/CD
%/NN
lower/JJR
for/IN
the/DT
day/NN
./.
As/IN
usual/JJ
,/,
the/DT
over-the-counter/JJ
market/NN
's/POS
biggest/JJS
technology/NN
stocks/NNS
were/VBD
hardest/RBS
hit/VBN
./.
Microsoft/NNP
,/,
battered/VBN
by/IN
profit/NN
taking/NN
in/IN
recent/JJ
sessions/NNS
,/,
sank/VBD
as/RB
much/RB
as/IN
4/CD
;/:
but/CC
it/PRP
finished/VBD
at/IN
80/CD
7\/8/CD
,/,
down/RB
2/CD
1\/4/CD
on/IN
volume/NN
of/IN
one/CD
million/CD
shares/NNS
./.
MCI/NNP
Communications/NNP
,/,
the/DT
most/RBS
active/JJ
issue/NN
,/,
finished/VBD
down/RB
5\/8/CD
to/TO
42/CD
1\/8/CD
./.
MCI/NNP
traded/VBD
as/RB
low/JJ
as/IN
41/CD
3\/8/CD
during/IN
the/DT
session/NN
./.
Other/JJ
active/JJ
stocks/NNS
included/VBD
Jaguar/NNP
,/,
whose/WP$
American/JJ
depositary/JJ
receipts/NNS
added/VBD
1\/8/CD
to/TO
11/CD
1\/4/CD
./.
Apple/NNP
Computer/NNP
improved/VBD
7\/8/CD
to/TO
47/CD
5\/8/CD
;/:
Intel/NNP
slipped/VBD
1\/4/CD
to/TO
33/CD
1\/4/CD
,/,
and/CC
Valley/NNP
National/NNP
Corp./NNP
was/VBD
up/RB
1\/8/CD
to/TO
15/CD
1\/8/CD
./.
``/``
The/DT
market/NN
started/VBD
with/IN
several/JJ
strikes/NNS
against/IN
it/PRP
,/,
''/''
said/VBD
Peter/NNP
DaPuzzo/NNP
,/,
head/NN
of/IN
retail/JJ
equity/NN
trading/NN
at/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
,/,
referring/VBG
to/TO
news/NN
that/IN
the/DT
labor-management/NN
buy-out/NN
of/IN
UAL/NNP
Corp./NNP
continued/VBD
to/TO
unravel/VB
,/,
and/CC
reports/NNS
that/IN
the/DT
junk-bond/NN
market/NN
is/VBZ
disintegrating/VBG
./.
But/CC
the/DT
computer-guided/JJ
selling/NN
in/IN
response/NN
to/TO
those/DT
developments/NNS
dealt/VBD
a/DT
serious/JJ
blow/NN
to/TO
the/DT
over-the-counter/JJ
market/NN
,/,
Mr./NNP
DaPuzzo/NNP
said/VBD
./.
Even/RB
though/IN
the/DT
over-the-counter/JJ
market/NN
usually/RB
does/VBZ
n't/RB
fall/VB
by/IN
as/RB
much/RB
as/IN
listed/JJ
stocks/NNS
during/IN
program-selling/JJ
blitzes/NNS
,/,
he/PRP
said/VBD
,/,
``/``
when/WRB
the/DT
market/NN
does/VBZ
recover/VB
,/,
the/DT
damage/NN
is/VBZ
done/VBN
and/CC
it/PRP
leaves/VBZ
Nasdaq/NNP
down/RB
more/RBR
than/IN
the/DT
Big/NNP
Board/NNP
./.
''/''
Mr./NNP
DaPuzzo/NNP
also/RB
complained/VBD
that/IN
the/DT
sharp/JJ
swings/NNS
in/IN
stock/NN
prices/NNS
lately/RB
is/VBZ
scaring/VBG
away/RB
retail/JJ
and/CC
foreign/JJ
investors/NNS
./.
While/IN
Shearson/NNP
does/VBZ
n't/RB
do/VB
computer-guided/JJ
program/NN
trading/NN
for/IN
its/PRP$
own/JJ
account/NN
,/,
the/DT
firm/NN
does/VBZ
execute/VB
orders/NNS
for/IN
clients/NNS
involved/VBN
in/IN
the/DT
buying/NN
and/CC
selling/NN
of/IN
shares/NNS
tied/VBN
to/TO
movements/NNS
in/IN
certain/JJ
stock/NN
indexes/NNS
,/,
Mr./NNP
DaPuzzo/NNP
acknowledged/VBD
./.
The/DT
volatility/NN
inherent/JJ
in/IN
program/NN
trading/NN
troubled/VBD
other/JJ
traders/NNS
,/,
too/RB
./.
They/PRP
do/VBP
n't/RB
like/VB
the/DT
risks/NNS
they/PRP
are/VBP
forced/VBN
to/TO
assume/VB
when/WRB
prices/NNS
swing/VBP
so/RB
drastically/RB
./.
Market/NN
makers/NNS
are/VBP
supposed/VBN
to/TO
keep/VB
supplies/NNS
of/IN
stocks/NNS
on/IN
hand/NN
to/TO
maintain/VB
orderly/JJ
trading/NN
when/WRB
imbalances/NNS
occur/VBP
./.
That/DT
means/VBZ
that/IN
on/IN
days/NNS
when/WRB
prices/NNS
are/VBP
tumbling/VBG
and/CC
sellers/NNS
abound/VBP
they/PRP
must/MD
be/VB
willing/JJ
to/TO
buy/VB
shares/NNS
from/IN
sellers/NNS
when/WRB
no/DT
one/NN
else/RB
will/MD
./.
In/IN
such/PDT
an/DT
environment/NN
,/,
a/DT
market/NN
maker/NN
can/MD
absorb/VB
huge/JJ
losses/NNS
./.
But/CC
the/DT
recent/JJ
volatility/NN
in/IN
stock/NN
prices/NNS
caused/VBN
by/IN
the/DT
program/NN
trading/NN
has/VBZ
made/VBN
some/DT
market/NN
makers/NNS
less/RBR
willing/JJ
to/TO
soak/VB
up/RP
the/DT
stocks/NNS
that/WDT
are/VBP
for/IN
sale/NN
./.
The/DT
market/NN
makers/NNS
say/VBP
they/PRP
are/VBP
n't/RB
comfortable/JJ
carrying/VBG
big/JJ
positions/NNS
in/IN
stocks/NNS
because/IN
they/PRP
realize/VBP
prices/NNS
can/MD
tumble/VB
quickly/RB
./.
The/DT
situation/NN
makes/VBZ
it/PRP
harder/JJR
to/TO
buy/VB
and/CC
sell/VB
shares/NNS
quickly/RB
,/,
exacerbating/VBG
the/DT
rise/NN
and/CC
fall/NN
in/IN
stock/NN
prices/NNS
during/IN
program-dominated/JJ
trading/NN
./.
Groused/VBD
Robert/NNP
Antolini/NNP
,/,
head/NN
of/IN
over-the-counter/JJ
trading/NN
at/IN
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
:/:
``/``
It/PRP
's/VBZ
making/VBG
it/PRP
tough/JJ
for/IN
traders/NNS
to/TO
make/VB
money/NN
./.
''/''
He/PRP
said/VBD
that/IN
when/WRB
sell/JJ
programs/NNS
kick/VBP
in/RP
,/,
many/JJ
traders/NNS
believe/VBP
that/IN
``/``
there/EX
's/VBZ
no/DT
sense/NN
in/IN
sticking/VBG
your/PRP$
nose/NN
out/RP
because/IN
you/PRP
're/VBP
an/DT
instant/JJ
loser/NN
./.
''/''
Kinder-Care/NNP
Learning/NNP
Centers/NNP
added/VBD
1\/4/CD
to/TO
4/CD
7\/8/CD
on/IN
461,200/CD
shares/NNS
./.
Lodestar/NNP
Group/NNP
said/VBD
it/PRP
will/MD
make/VB
a/DT
$/$
6-a-share/JJ
offer/NN
for/IN
the/DT
remaining/VBG
Kinder-Care/NNP
Learning/NNP
Center/NNP
common/JJ
stock/NN
if/IN
it/PRP
acquires/VBZ
a/DT
majority/NN
of/IN
the/DT
company/NN
's/POS
shares/NNS
in/IN
a/DT
pending/VBG|JJ
rights/NNS
offering/NN
by/IN
Kinder-Care/NNP
Learning/NNP
Center/NNP
's/POS
parent/NN
,/,
Kinder-Care/NNP
Inc/NNP
./.
Shares/NNP
of/IN
KinderCare/NNP
Inc./NNP
closed/VBD
at/IN
3/CD
1\/2/CD
,/,
also/RB
up/RB
1\/4/CD
,/,
on/IN
volume/NN
of/IN
700,000/CD
./.
Ohio/NNP
Casualty/NNP
dropped/VBD
2/CD
1\/8/CD
to/TO
49/CD
1\/2/CD
./.
The/DT
company/NN
posted/VBD
third-quarter/JJ
earnings/NNS
of/IN
95/CD
cents/NNS
a/DT
share/NN
,/,
down/IN
from/IN
$/$
1.26/CD
a/DT
year/NN
earlier/RBR
./.
The/DT
company/NN
estimated/VBD
that/IN
losses/NNS
from/IN
Hurricane/NNP
Hugo/NNP
reduced/VBD
net/JJ
income/NN
by/IN
32/CD
cents/NNS
a/DT
share/NN
in/IN
the/DT
most/RBS
recent/JJ
quarter/NN
./.
The/DT
company/NN
said/VBD
losses/NNS
from/IN
the/DT
Oct./NNP
17/CD
earthquake/NN
in/IN
California/NNP
have/VBP
n't/RB
yet/RB
been/VBN
determined/VBN
,/,
but/CC
that/IN
it/PRP
provides/VBZ
earthquake/NN
coverage/NN
to/TO
about/RB
1,400/CD
properties/NNS
in/IN
the/DT
stricken/JJ
area/NN
./.
Any/DT
quake-related/JJ
losses/NNS
will/MD
be/VB
reported/VBN
in/IN
the/DT
fourth/JJ
quarter/NN
,/,
the/DT
company/NN
said/VBD
./.
North/NNP
Atlantic/NNP
Industries/NNP
jumped/VBD
1/CD
to/TO
5/CD
3\/4/CD
./.
The/DT
electronics-instruments/JJ
maker/NN
is/VBZ
to/TO
be/VB
acquired/VBN
by/IN
Asset/NNP
Management/NNP
Associates/NNP
for/IN
$/$
7.25/CD
a/DT
share/NN
./.
LIN/NNP
Broadcasting/NNP
slid/VBD
1/CD
3\/8/CD
to/TO
108/CD
3\/4/CD
,/,
despite/IN
reporting/VBG
third-quarter/JJ
net/NN
of/IN
46/CD
cents/NNS
a/DT
share/NN
,/,
up/RB
from/IN
39/CD
cents/NNS
the/DT
previous/JJ
year/NN
./.
The/DT
company/NN
said/VBD
the/DT
latest/JJS
quarter/NN
included/VBD
about/RB
$/$
3.4/CD
million/CD
in/IN
special/JJ
legal/JJ
and/CC
financial/JJ
advisory/JJ
costs/NNS
related/VBN
to/TO
McCaw/NNP
Cellular/NNP
Communications/NNP
'/POS
bid/NN
for/IN
the/DT
company/NN
and/CC
LIN/NNP
's/POS
merger/NN
pact/NN
with/IN
BellSouth/NNP
./.
McCaw/NNP
was/VBD
unchanged/JJ
at/IN
40/CD
./.
XL\/Datacomp/NNP
slid/VBD
2/CD
1\/4/CD
to/TO
16/CD
1\/2/CD
amid/IN
continuing/JJ
concerns/NNS
about/IN
the/DT
company/NN
's/POS
contract/NN
negotiations/NNS
with/IN
International/NNP
Business/NNP
Machines/NNP
./.
IBM/NNP
is/VBZ
reviewing/VBG
its/PRP$
entire/JJ
business-partners/NNS
program/NN
,/,
and/CC
XL\/Datacomp/NNP
confirmed/VBD
earlier/RBR
this/DT
month/NN
that/IN
it/PRP
was/VBD
in/IN
talks/NNS
with/IN
the/DT
company/NN
about/IN
possible/JJ
modifications/NNS
to/TO
its/PRP$
current/JJ
IBM-remarketer/JJ
contract/NN
./.
Remarketers/NNS
make/VBP
modifications/NNS
to/TO
IBM/NNP
's/POS
computer/NN
hardware/NN
and/CC
resell/VBP
the/DT
products/NNS
./.
Omni/NNP
Capital/NNP
Group/NNP
surged/VBD
1/CD
3\/4/CD
to/TO
16/CD
1\/4/CD
./.
The/DT
company/NN
said/VBD
net/NN
rose/NN
to/TO
38/CD
cents/NNS
a/DT
share/NN
in/IN
its/PRP$
fiscal-first/JJ
quarter/NN
ended/VBN
Sept./NNP
30/CD
,/,
from/IN
35/CD
cents/NNS
a/DT
shares/NNS
a/DT
year/NN
ago/RB
./.
Probably/RB
the/DT
most/RBS
clear-cut/JJ
Soviet/JJ
violation/NN
,/,
for/IN
example/NN
,/,
is/VBZ
the/DT
Krasnoyarsk/NNP
radar/NN
./.
--/:
``/``
Arms/NNS
Control/NN
Reality/NN
,/,
''/''
Nov./NNP
20/CD
,/,
1984/CD
,/,
the/DT
first/JJ
of/IN
some/RB
20/CD
Journal/NNP
editorials/NNS
saying/VBG
that/IN
Krasnoyarsk/NNP
violated/VBD
the/DT
ABM/NNP
treaty/NN
./.
--/:
``/``
Whether/IN
the/DT
installation/NN
is/VBZ
for/IN
early/JJ
warning/NN
or/CC
space/NN
track/NN
,/,
it/PRP
clearly/RB
is/VBZ
not/RB
deployed/VBN
,/,
''/''
the/DT
lawmakers/NNS
said/VBD
./.
``/``
Thus/RB
we/PRP
judge/VBP
it/PRP
to/TO
be/VB
not/RB
a/DT
violation/NN
of/IN
the/DT
ABM/NNP
treaty/NN
at/IN
this/DT
time/NN
./.
''/''
The/DT
delegation/NN
included/VBD
a/DT
reporter/NN
from/IN
the/DT
New/NNP
York/NNP
Times/NNP
,/,
aides/NNS
to/TO
Sen./NNP
Edward/NNP
M./NNP
Kennedy/NNP
and/CC
Rep./NNP
Les/NNP
AuCoin/NNP
,/,
and/CC
Natural/NNP
Resources/NNP
Defense/NNP
Council/NNP
staff/NN
members/NN
./.
--/:
The/DT
Washington/NNP
Post/NNP
,/,
Sept./NNP
9/CD
,/,
1987/CD
./.
--/:
The/DT
U.S.S.R./NNP
has/VBZ
taken/VBN
unprecedented/JJ
unilateral/JJ
measures/NNS
of/IN
openness/NN
,/,
by/IN
giving/VBG
American/JJ
representatives/NNS
a/DT
possibility/NN
to/TO
inspect/VB
the/DT
building/NN
site/NN
of/IN
the/DT
Krasnoyarsk/NNP
radar/NN
as/RB
well/RB
as/IN
radar/NN
vans/NNS
in/IN
the/DT
areas/NNS
of/IN
Gomel/NNP
and/CC
Moscow/NNP
,/,
so/RB
as/IN
to/TO
see/VB
for/IN
themselves/PRP
that/IN
there/EX
are/VBP
no/DT
violations/NNS
of/IN
the/DT
ABM/NNP
treaty/NN
of/IN
1972/CD
on/IN
the/DT
part/NN
of/IN
the/DT
Soviet/NNP
Union/NNP
./.
--/:
Letter/NN
from/IN
Eduard/NNP
Shevardnadze/NNP
to/TO
U.N./NNP
Secretary-General/NNP
Perez/NNP
de/IN
Cuellar/NNP
,/,
reported/VBN
in/IN
Tass/NNP
,/,
June/NNP
10/CD
,/,
1988/CD
./.
--/:
The/DT
construction/NN
of/IN
this/DT
station/NN
equal/JJ
in/IN
size/NN
to/TO
the/DT
Egyptian/JJ
pyramids/NNS
constituted/VBD
,/,
I/PRP
say/VBP
it/PRP
directly/RB
,/,
a/DT
clear/JJ
violation/NN
of/IN
ABM/NNP
./.
--/:
Eduard/NNP
Shevardnadze/NNP
,/,
Oct./NNP
23/CD
,/,
1989/CD
./.
We/PRP
're/VBP
happy/JJ
,/,
we/PRP
guess/VBP
,/,
to/TO
receive/VB
confirmation/NN
of/IN
the/DT
Krasnoyarsk/NNP
violation/NN
from/IN
the/DT
Soviets/NNPS
,/,
five/CD
years/NNS
after/IN
we/PRP
started/VBD
writing/VBG
about/IN
it/PRP
./.
Perhaps/RB
even/RB
the/DT
American/JJ
apologists/NNS
will/MD
now/RB
accede/VB
./.
Without/IN
question/NN
,/,
something/NN
intriguing/JJ
is/VBZ
going/VBG
on/RP
in/IN
the/DT
policy/NN
chambers/NNS
of/IN
the/DT
Politburo/NNP
./.
As/IN
it/PRP
bids/VBZ
for/IN
new/JJ
agreements/NNS
,/,
new/JJ
loans/NNS
and/CC
indeed/RB
admission/NN
to/TO
the/DT
civilized/JJ
world/NN
,/,
the/DT
Soviet/JJ
government/NN
has/VBZ
recognized/VBN
it/PRP
has/VBZ
a/DT
credibility/NN
problem/NN
./.
So/RB
after/IN
70/CD
years/NNS
,/,
it/PRP
is/VBZ
confessing/VBG
the/DT
obvious/JJ
,/,
hoping/VBG
to/TO
be/VB
believed/VBN
about/IN
other/JJ
things/NNS
./.
It/PRP
's/VBZ
not/RB
enough/RB
./.
If/IN
the/DT
Soviets/NNP
want/VBP
to/TO
be/VB
believed/VBN
,/,
they/PRP
need/VBP
to/TO
start/VB
telling/VBG
the/DT
truth/NN
about/IN
more/JJR
than/IN
the/DT
totally/RB
obvious/JJ
./.
Our/PRP$
own/JJ
test/NN
of/IN
``/``
glasnost/FW
's/POS
''/''
authenticity/NN
would/MD
be/VB
a/DT
Soviet/JJ
decision/NN
to/TO
open/VB
itself/PRP
to/TO
a/DT
complete/JJ
international/JJ
examination/NN
of/IN
one/CD
of/IN
the/DT
most/RBS
troubling/JJ
mysteries/NNS
in/IN
U.S.-Soviet/JJ
relations/NNS
--/:
the/DT
reported/JJ
1979/CD
anthrax/NN
outbreak/NN
at/IN
a/DT
Soviet/JJ
military/JJ
facility/NN
in/IN
Sverdlovsk/NNP
./.
The/DT
U.S./NNP
government/NN
has/VBZ
never/RB
waivered/VBN
in/IN
its/PRP$
assessment/NN
of/IN
this/DT
incident/NN
as/IN
an/DT
accident/NN
at/IN
a/DT
biological/JJ
weapons/NNS
facility/NN
there/RB
,/,
and/CC
hence/RB
a/DT
violation/NN
of/IN
the/DT
1972/CD
Biological/NNP
Weapons/NNP
Convention/NNP
./.
The/DT
Pentagon/NNP
's/POS
recently/RB
issued/VBN
``/``
Soviet/JJ
Military/JJ
Power/NN
,/,
''/''
though/IN
in/IN
general/JJ
adopting/VBG
a/DT
softer/JJR
line/NN
,/,
repeated/VBD
the/DT
Sverdlovsk/NNP
assessment/NN
./.
It/PRP
also/RB
was/VBD
detailed/VBN
in/IN
Congressional/JJ
testimony/NN
this/DT
past/JJ
February/NNP
:/:
An/DT
explosion/NN
at/IN
the/DT
Microbiology/NNP
and/CC
Virology/NNP
Institute/NNP
in/IN
Sverdlovsk/NNP
released/VBD
anthrax/NN
germs/NNS
that/WDT
caused/VBD
a/DT
significant/JJ
number/NN
of/IN
deaths/NNS
./.
Since/IN
Mr./NNP
Shevardnadze/NNP
did/VBD
not/RB
address/NN
this/DT
topic/NN
before/IN
the/DT
Supreme/NNP
Soviet/NNP
,/,
the/DT
Soviet/NNP
Union/NNP
's/POS
official/JJ
position/NN
remains/VBZ
that/IN
the/DT
anthrax/NN
deaths/NNS
were/VBD
caused/VBN
by/IN
tainted/JJ
meat/NN
./.
We/PRP
doubt/VBP
this/DT
claim/NN
just/RB
as/IN
we/PRP
doubted/VBD
Mr./NNP
Shevardnadze/NNP
's/POS
assurance/NN
last/JJ
year/NN
that/IN
Krasnoyarsk/NNP
did/VBD
n't/RB
violate/VB
the/DT
ABM/NNP
treaty/NN
./.
And/CC
just/RB
as/IN
we/PRP
did/VBD
not/RB
believe/VB
the/DT
tendentious/JJ
claims/NNS
of/IN
the/DT
Congressmen/NNPS
and/CC
arms-control/NN
advocates/NNS
who/WP
visited/VBD
Krasnoyarsk/NNP
,/,
we/PRP
are/VBP
in/IN
no/DT
way/NN
persuaded/VBN
by/IN
the/DT
assent/NN
to/TO
the/DT
tainted-meat/NN
theory/NN
by/IN
a/DT
U.S./NNP
team/NN
of/IN
scientists/NNS
who/WP
met/VBD
with/IN
Soviet/NNP
counterparts/NNS
in/IN
Washington/NNP
last/JJ
year/NN
./.
The/DT
Soviets/NNPS
'/POS
explanation/NN
is/VBZ
that/IN
the/DT
anthrax/NN
came/VBD
from/IN
one/CD
lot/NN
of/IN
animal/NN
feed/NN
made/VBN
from/IN
the/DT
bones/NNS
of/IN
cattle/NNS
that/WDT
grazed/VBD
on/IN
soil/NN
that/WDT
was/VBD
naturally/RB
infected/VBN
with/IN
anthrax/NN
spores/NNS
./.
Harvard/NNP
's/POS
Matthew/NNP
Meselson/NNP
--/:
who/WP
we/PRP
read/VBP|VBD
has/VBZ
sold/VBN
something/NN
called/VBN
the/DT
``/``
scientific/JJ
community/NN
''/''
on/IN
the/DT
notion/NN
that/IN
``/``
yellow/JJ
rain/NN
''/''
attacks/NNS
on/IN
the/DT
Laotian/JJ
Hmong/NNPS
were/VBD
in/IN
fact/NN
the/DT
result/NN
of/IN
fecal/JJ
showers/NNS
by/IN
giant/JJ
bees/NNS
--/:
found/VBD
the/DT
Soviet/JJ
anthrax/NN
scenario/NN
``/``
completely/RB
plausible/JJ
./.
''/''
We/PRP
do/VBP
n't/RB
believe/VB
it/PRP
./.
And/CC
we/PRP
certainly/RB
do/VBP
not/RB
believe/VB
that/IN
Mr./NNP
Gorbachev/NNP
or/CC
any/DT
of/IN
his/PRP$
emissaries/NNS
yet/RB
deserve/VBP
to/TO
have/VB
the/DT
West/NNP
take/VB
their/PRP$
word/NN
for/IN
it/PRP
./.
Sverdlovsk/NNP
is/VBZ
a/DT
large/JJ
gray/JJ
cloud/NN
over/IN
glasnost/FW
and/CC
indeed/RB
over/IN
the/DT
legitimacy/NN
of/IN
the/DT
arms-control/NN
process/NN
itself/PRP
./.
The/DT
U.S./NNP
government/NN
's/POS
Sverdlovsk/NNP
complaint/NN
,/,
as/IN
with/IN
Krasnoyarsk/NNP
,/,
is/VBZ
no/DT
mere/JJ
political/JJ
posturing/NN
./.
Biological/JJ
weapons/NNS
violations/NNS
have/VBP
figured/VBN
little/RB
in/IN
political/JJ
debate/NN
,/,
and/CC
indeed/RB
have/VBP
not/RB
been/VBN
pressed/VBN
vigorously/RB
enough/RB
by/IN
the/DT
U.S./NNP
government/NN
./.
But/CC
the/DT
stated/JJ
U.S./NNP
position/NN
is/VBZ
detailed/JJ
and/CC
specific/JJ
,/,
and/CC
the/DT
prospect/NN
of/IN
biological/JJ
warfare/NN
is/VBZ
profoundly/RB
chilling/JJ
./.
The/DT
Soviets/NNPS
should/MD
be/VB
willing/JJ
to/TO
set/VB
in/IN
motion/NN
a/DT
process/NN
that/WDT
would/MD
allow/VB
them/PRP
to/TO
acknowledge/VB
that/DT
Sverdlovsk/NNP
violated/VBD
the/DT
1972/CD
agreement/NN
or/CC
,/,
alternatively/RB
,/,
that/WDT
would/MD
give/VB
U.S./NNP
specialists/NNS
reasonable/JJ
confidence/NN
that/IN
this/DT
was/VBD
a/DT
wholly/RB
civilian/JJ
accident/NN
./.
Until/IN
that/DT
happens/VBZ
,/,
glasnost/FW
can/MD
not/RB
begin/VB
to/TO
deserve/VB
the/DT
kind/NN
of/IN
credibility/NN
Mr./NNP
Shevardnadze/NNP
was/VBD
bidding/VBG
for/IN
with/IN
his/PRP$
confessions/NNS
on/IN
Monday/NNP
./.
Manville/NNP
Corp./NNP
said/VBD
it/PRP
offered/VBD
to/TO
buy/VB
$/$
500/CD
million/CD
of/IN
its/PRP$
convertible/JJ
preferred/JJ
stock/NN
from/IN
the/DT
Manville/NNP
Personal/NNP
Injury/NNP
Settlement/NNP
Trust/NNP
in/IN
a/DT
move/NN
that/WDT
would/MD
improve/VB
the/DT
trust/NN
's/POS
liquidity/NN
and/CC
reduce/VB
the/DT
potential/JJ
number/NN
of/IN
Manville/NNP
shares/NNS
outstanding/JJ
./.
Manville/NNP
said/VBD
it/PRP
made/VBD
the/DT
offer/NN
within/IN
the/DT
past/JJ
several/JJ
weeks/NNS
as/IN
part/NN
of/IN
an/DT
effort/NN
to/TO
improve/VB
shareholder/NN
value/NN
./.
It/PRP
said/VBD
it/PRP
would/MD
purchase/VB
the/DT
stock/NN
at/IN
market/NN
price/NN
./.
Manville/NNP
and/CC
a/DT
spokeswoman/NN
for/IN
the/DT
trust/NN
said/VBD
that/IN
the/DT
two/CD
are/VBP
discussing/VBG
the/DT
proposal/NN
but/CC
a/DT
decision/NN
has/VBZ
n't/RB
been/VBN
made/VBN
./.
``/``
We/PRP
are/VBP
considering/VBG
that/DT
offer/NN
along/IN
with/IN
all/DT
other/JJ
alternatives/NNS
,/,
''/''
the/DT
trust/NN
spokeswoman/NN
said/VBD
./.
``/``
We/PRP
need/VBP
to/TO
look/VB
at/IN
how/WRB
to/TO
maximize/VB
our/PRP$
cash/NN
flow/NN
to/TO
pay/VB
our/PRP$
beneficiaries/NNS
./.
''/''
The/DT
trust/NN
,/,
created/VBN
as/IN
part/NN
of/IN
Manville/NNP
's/POS
bankruptcy-law/NN
reorganization/NN
to/TO
compensate/VB
victims/NNS
of/IN
asbestos-related/JJ
diseases/NNS
,/,
owns/VBZ
7.2/CD
million/CD
of/IN
the/DT
Series/NNP
A/NNP
convertible/JJ
preferred/JJ
shares/NNS
,/,
which/WDT
are/VBP
each/DT
convertible/JJ
into/IN
10/CD
Manville/NNP
common/JJ
shares/NNS
./.
The/DT
trust/NN
also/RB
owns/VBZ
half/NN
of/IN
Manville/NNP
's/POS
48/CD
million/CD
common/JJ
shares/NNS
outstanding/JJ
./.
Based/VBN
on/IN
Manville/NNP
's/POS
closing/NN
price/NN
yesterday/NN
of/IN
$/$
9.25/CD
a/DT
share/NN
,/,
Manville/NNP
's/POS
offer/NN
would/MD
purchase/VB
about/RB
5.4/CD
million/CD
of/IN
its/PRP$
preferred/JJ
shares/NNS
,/,
or/CC
about/RB
75/CD
%/NN
of/IN
the/DT
trust/NN
's/POS
preferred/JJ
stock/NN
holding/NN
./.
In/IN
addition/NN
to/TO
the/DT
stock/NN
and/CC
20/CD
%/NN
of/IN
Manville/NNP
's/POS
profits/NNS
beginning/VBG
in/IN
1992/CD
,/,
the/DT
trust/NN
is/VBZ
supposed/VBN
to/TO
receive/VB
$/$
2.5/CD
billion/CD
over/IN
its/PRP$
27-year/JJ
life/NN
./.
But/CC
it/PRP
initially/RB
was/VBD
funded/VBN
with/IN
about/RB
$/$
765/CD
million/CD
and/CC
may/MD
soon/RB
face/VB
a/DT
cash/NN
crunch/NN
./.
As/IN
of/IN
June/NNP
30/CD
,/,
it/PRP
had/VBD
settled/VBN
about/RB
15,000/CD
of/IN
81,000/CD
claims/NNS
filed/VBN
and/CC
its/PRP$
unpaid/JJ
claims/NNS
totaled/VBD
$/$
136/CD
million/CD
,/,
a/DT
large/JJ
portion/NN
of/IN
its/PRP$
$/$
268/CD
million/CD
in/IN
cash/NN
and/CC
marketable/JJ
securities/NNS
./.
Since/IN
most/JJS
of/IN
its/PRP$
assets/NNS
are/VBP
tied/VBN
to/TO
Manville/NNP
,/,
a/DT
forest/NN
and/CC
building/NN
products/NNS
concern/NN
,/,
the/DT
trust/NN
might/MD
also/RB
want/VB
to/TO
diversify/VB
its/PRP$
holdings/NNS
./.
As/IN
part/NN
of/IN
its/PRP$
offer/NN
,/,
Manville/NNP
said/VBD
it/PRP
requested/VBD
changes/NNS
in/IN
some/DT
covenants/NNS
between/IN
it/PRP
and/CC
the/DT
trust/NN
to/TO
allow/VB
Manville/NNP
to/TO
``/``
reflect/VB
a/DT
more/RBR
typical/JJ
corporate/JJ
ownership/NN
and/CC
financial/JJ
structure/NN
./.
''/''
A/DT
Manville/NNP
spokesman/NN
would/MD
n't/RB
elaborate/VB
on/IN
the/DT
proposed/JJ
changes/NNS
./.
But/CC
he/PRP
said/VBD
they/PRP
are/VBP
``/``
to/TO
a/DT
large/JJ
degree/NN
,/,
housekeeping/NN
,/,
''/''
although/IN
some/DT
may/MD
generate/VB
some/DT
disagreement/NN
./.
Manville/NNP
said/VBD
the/DT
shares/NNS
issued/VBN
to/TO
the/DT
trust/NN
were/VBD
intended/VBN
to/TO
be/VB
sold/VBN
,/,
as/IN
needed/VBN
,/,
and/CC
that/IN
Manville/NNP
has/VBZ
the/DT
right/NN
of/IN
first/JJ
refusal/NN
to/TO
buy/VB
those/DT
shares/NNS
./.
Northeast/NNP
Utilities/NNP
raised/VBD
its/PRP$
bid/NN
for/IN
Public/NNP
Service/NNP
Co./NNP
of/IN
New/NNP
Hampshire/NNP
,/,
which/WDT
is/VBZ
operating/VBG
under/IN
Bankruptcy/NNP
Code/NNP
protection/NN
,/,
to/TO
$/$
2.25/CD
billion/CD
from/IN
$/$
1.85/CD
billion/CD
./.
Northeast/NNP
's/POS
raised/VBN
bid/NN
,/,
which/WDT
was/VBD
supported/VBN
by/IN
PS/NNP
of/IN
New/NNP
Hampshire/NNP
's/POS
official/JJ
shareholder/NN
committee/NN
,/,
is/VBZ
a/DT
prelude/NN
to/TO
what/WP
is/VBZ
expected/VBN
to/TO
be/VB
a/DT
round/NN
of/IN
higher/JJR
bids/NNS
by/IN
the/DT
other/JJ
groups/NNS
trying/VBG
to/TO
acquire/VB
the/DT
company/NN
,/,
the/DT
largest/JJS
utility/NN
in/IN
New/NNP
Hampshire/NNP
./.
The/DT
$/$
2.25/CD
billion/CD
value/NN
claimed/VBN
by/IN
Northeast/NNP
,/,
based/VBN
in/IN
Hartford/NNP
,/,
Conn./NNP
,/,
is/VBZ
the/DT
highest/JJS
yet/RB
given/VBN
to/TO
a/DT
bid/NN
./.
Some/DT
of/IN
the/DT
three/CD
other/JJ
bidding/VBG
groups/NNS
are/VBP
expected/VBN
to/TO
increase/VB
their/PRP$
offers/NNS
tomorrow/NN
,/,
a/DT
date/NN
set/VBN
for/IN
revised/JJ
offers/NNS
by/IN
a/DT
bankruptcy/NN
court/NN
judge/NN
./.
A/DT
hearing/NN
is/VBZ
set/VBN
for/IN
Nov./NNP
15/CD
,/,
but/CC
participants/NNS
do/VBP
n't/RB
expect/VB
a/DT
resolution/NN
until/IN
July/NNP
1990/CD
./.
Under/IN
the/DT
new/JJ
Northeast/NNP
Utilities/NNP
plan/NN
,/,
it/PRP
would/MD
pay/VB
$/$
1.65/CD
billion/CD
in/IN
cash/NN
to/TO
creditors/NNS
and/CC
assume/VB
$/$
100/CD
million/CD
in/IN
pollution/NN
control/NN
bonds/NNS
./.
Secured/JJ
creditors/NNS
would/MD
recover/VB
both/DT
principal/NN
and/CC
interest/NN
,/,
while/IN
unsecured/JJ
creditors/NNS
would/MD
receive/VB
only/RB
principal/NN
and/CC
interest/NN
accrued/VBN
before/IN
PS/NNP
of/IN
New/NNP
Hampshire/NNP
filed/VBD
for/IN
Bankruptcy/NNP
Code/NNP
protection/NN
in/IN
January/NNP
The/DT
biggest/JJS
change/NN
in/IN
Northeast/NNP
's/POS
offer/NN
was/VBD
in/IN
improvements/NNS
made/VBN
for/IN
equity/NN
holders/NNS
who/WP
had/VBD
been/VBN
given/VBN
short/JJ
shrift/NN
previously/RB
./.
Assuming/VBG
full/JJ
operation/NN
of/IN
the/DT
Seabrook/NNP
nuclear/JJ
power/NN
plant/NN
,/,
which/WDT
is/VBZ
completed/VBN
but/CC
is/VBZ
n't/RB
yet/RB
operating/VBG
,/,
equity/NN
holders/NNS
would/MD
receive/VB
up/IN
to/TO
$/$
500/CD
million/CD
in/IN
cash/NN
,/,
preferred/JJ
stock/NN
and/CC
new/JJ
10-year/JJ
Seabrook/NNP
bonds/NNS
./.
Northeast/NNP
's/POS
previous/JJ
offer/NN
had/VBD
proposed/VBN
that/IN
equity/NN
holders/NNS
receive/VB
just/RB
$/$
165/CD
million/CD
./.
In/IN
addition/NN
,/,
Northeast/NNP
promised/VBD
the/DT
State/NNP
of/IN
New/NNP
Hampshire/NNP
that/IN
rate/NN
increases/NNS
would/MD
be/VB
limited/VBN
to/TO
5.5/CD
%/NN
annually/RB
for/IN
seven/CD
years/NNS
./.
Its/PRP$
previous/JJ
proposal/NN
had/VBD
conditioned/VBN
rate/NN
limits/NNS
on/IN
Seabrook/NNP
operations/NNS
and/CC
other/JJ
contingencies/NNS
./.
Wilbur/NNP
Ross/NNP
,/,
financial/JJ
adviser/NN
to/TO
the/DT
equity/NN
holders/NNS
said/VBD
,/,
``/``
Given/VBN
the/DT
state/NN
's/POS
strong/JJ
bargaining/NN
position/NN
.../:
we/PRP
believe/VBP
the/DT
NU/NNP
plan/NN
provides/VBZ
the/DT
best/JJS
recovery/NN
available/JJ
''/''
to/TO
PS/NNP
of/IN
New/NNP
Hampshire/NNP
's/POS
equity/NN
holders/NNS
./.
Officials/NNP
of/IN
PS/NNP
of/IN
New/NNP
Hampshire/NNP
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
The/DT
company/NN
has/VBZ
filed/VBN
an/DT
internal/JJ
reorganization/NN
plan/NN
it/PRP
valued/VBD
at/IN
$/$
2.2/CD
billion/CD
that/WDT
would/MD
require/VB
5.5/CD
%/NN
rate/NN
increases/NNS
./.
That/DT
plan/NN
would/MD
leave/VB
existing/JJ
preferred/JJ
shareholders/NNS
with/IN
at/IN
least/JJS
a/DT
41/CD
%/NN
stake/NN
and/CC
give/VB
common/JJ
shareholders/NNS
as/RB
little/JJ
as/IN
13/CD
%/NN
./.
New/NNP
England/NNP
Electric/NNP
System/NNP
,/,
Westborough/NNP
,/,
Mass./NNP
,/,
has/VBZ
proposed/VBN
buying/VBG
the/DT
company/NN
for/IN
$/$
2/CD
billion/CD
as/IN
part/NN
of/IN
a/DT
plan/NN
that/WDT
would/MD
require/VB
rate/NN
increases/NNS
of/IN
only/RB
4.8/CD
%/NN
annually/RB
for/IN
seven/CD
years/NNS
./.
The/DT
state/NN
of/IN
New/NNP
Hampshire/NNP
has/VBZ
favored/VBN
that/DT
plan/NN
./.
The/DT
other/JJ
bidder/NN
is/VBZ
United/NNP
Illuminating/NNP
Co./NNP
,/,
New/NNP
Haven/NNP
,/,
Conn./NNP
,/,
with/IN
a/DT
bid/NN
valued/VBN
at/IN
$/$
2.2/CD
billion/CD
and/CC
and/CC
a/DT
proposal/NN
for/IN
seven/CD
years/NNS
of/IN
5.5/CD
%/NN
rate/NN
increases/NNS
./.
The/DT
Polish/JJ
rat/NN
will/MD
eat/VB
well/RB
this/DT
winter/NN
./.
Tons/NNS
of/IN
delectably/RB
rotting/VBG
potatoes/NNS
,/,
barley/NN
and/CC
wheat/NN
will/MD
fill/VB
damp/JJ
barns/NNS
across/IN
the/DT
land/NN
as/IN
thousands/NNS
of/IN
farmers/NNS
turn/VBP
the/DT
state/NN
's/POS
buyers/NNS
away/RP
./.
Many/PDT
a/DT
piglet/NN
wo/MD
n't/RB
be/VB
born/VBN
as/IN
a/DT
result/NN
,/,
and/CC
many/PDT
a/DT
ham/NN
will/MD
never/RB
hang/VB
in/IN
a/DT
butcher/NN
shop/NN
./.
But/CC
with/IN
inflation/NN
raging/VBG
,/,
grain/NN
in/IN
the/DT
barn/NN
will/MD
still/RB
be/VB
a/DT
safer/JJR
bet/NN
for/IN
the/DT
private/JJ
farmer/NN
than/IN
money/NN
in/IN
the/DT
bank/NN
./.
Once/RB
again/RB
,/,
the/DT
indomitable/JJ
peasant/NN
holds/VBZ
Poland/NNP
's/POS
future/NN
in/IN
his/PRP$
hands/NNS
./.
Until/IN
his/PRP$
labor/NN
can/MD
produce/VB
a/DT
profit/NN
in/IN
this/DT
dying/VBG
and/CC
distorted/JJ
system/NN
,/,
even/RB
Solidarity/NNP
's/POS
sympathetic/JJ
new/JJ
government/NN
wo/MD
n't/RB
win/VB
him/PRP
over/RP
./.
In/IN
coming/JJ
months/NNS
,/,
emergency/NN
food/NN
aid/NN
moving/VBG
in/RP
from/IN
the/DT
West/NNP
will/MD
be/VB
the/DT
one/CD
buffer/NN
between/IN
a/DT
meat-hungry/JJ
public/NN
and/CC
a/DT
new/JJ
political/JJ
calamity/NN
./.
Factory/NN
workers/NNS
on/IN
strike/NN
knocked/VBD
Poland/NNP
's/POS
Communist/JJ
bosses/NNS
off/IN
balance/NN
last/JJ
year/NN
;/:
this/DT
year/NN
,/,
it/PRP
was/VBD
the/DT
farmers/NNS
who/WP
brought/VBD
them/PRP
down/RP
./.
In/IN
June/NNP
,/,
farmers/NNS
held/VBD
onto/IN
meat/NN
,/,
milk/NN
and/CC
grain/NN
,/,
waiting/VBG
for/IN
July/NNP
's/POS
usual/JJ
state-directed/JJ
price/NN
rises/NNS
./.
The/DT
Communists/NNPS
froze/VBD
prices/NNS
instead/RB
./.
The/DT
farmers/NNS
ran/VBD
a/DT
boycott/NN
,/,
and/CC
meat/NN
disappeared/VBD
from/IN
the/DT
shops/NNS
./.
On/IN
Aug./NNP
1/CD
,/,
the/DT
state/NN
tore/VBD
up/RP
its/PRP$
controls/NNS
,/,
and/CC
food/NN
prices/NNS
leaped/VBD
./.
Without/IN
buffer/NN
stocks/NNS
,/,
inflation/NN
exploded/VBD
./.
That/DT
was/VBD
when/WRB
the/DT
tame/JJ
old/JJ
Peasants/NNP
'/POS
Party/NNP
,/,
desperate/JJ
to/TO
live/VB
through/IN
the/DT
crisis/NN
,/,
broke/VBD
ranks/NNS
with/IN
the/DT
Communists/NNPS
and/CC
joined/VBD
with/IN
Solidarity/NNP
in/IN
the/DT
East/NNP
Bloc/NNP
's/POS
first/JJ
liberated/JJ
government/NN
./.
But/CC
by/IN
the/DT
time/NN
Solidarity/NNP
took/VBD
office/NN
in/IN
September/NNP
,/,
the/DT
damage/NN
was/VBD
done/VBN
./.
``/``
Shortageflation/NN
,/,
''/''
as/IN
economists/NNS
have/VBP
come/VBN
to/TO
call/VB
it/PRP
,/,
had/VBD
gone/VBN
hyper/JJ
./.
The/DT
cost/NN
of/IN
raising/VBG
a/DT
pig/NN
kept/VBD
bounding/VBG
ahead/RB
of/IN
the/DT
return/NN
for/IN
selling/VBG
one/CD
./.
The/DT
farmers/NNS
stayed/VBD
angry/JJ
./.
They/PRP
still/RB
are/VBP
./.
At/IN
dawn/NN
on/IN
a/DT
cool/JJ
day/NN
,/,
hundreds/NNS
travel/VBP
to/TO
the/DT
private/JJ
market/NN
in/IN
Radzymin/NNP
,/,
a/DT
town/NN
not/RB
far/RB
from/IN
Warsaw/NNP
,/,
hauling/VBG
pigs/NNS
,/,
cattle/NNS
and/CC
sacks/NNS
of/IN
feed/NN
that/WDT
the/DT
state/NN
's/POS
official/JJ
buyers/NNS
ca/MD
n't/RB
induce/VB
them/PRP
to/TO
sell/VB
./.
Here/RB
,/,
they/PRP
are/VBP
searching/VBG
for/IN
a/DT
higher/JJR
price/NN
./.
In/IN
a/DT
crush/NN
of/IN
trucks/NNS
and/CC
horse/NN
carts/NNS
on/IN
the/DT
trodden/JJ
field/NN
,/,
Andrzej/NNP
Latowski/NNP
wrestles/VBZ
a/DT
screeching/VBG
,/,
overweight/JJ
hog/NN
into/IN
the/DT
trunk/NN
of/IN
a/DT
private/JJ
butcher/NN
's/POS
Polish/JJ
Fiat/NNP
./.
``/``
Of/IN
course/NN
it/PRP
's/VBZ
better/JJR
to/TO
sell/VB
private/JJ
,/,
''/''
he/PRP
says/VBZ
,/,
as/IN
the/DT
butcher/NN
trundles/VBZ
away/RB
./.
``/``
Why/WRB
should/MD
anybody/NN
want/VB
to/TO
sell/VB
to/TO
them/PRP
?/.
''/''
The/DT
young/JJ
farmer/NN
makes/VBZ
money/NN
on/IN
the/DT
few/JJ
hogs/NNS
he/PRP
sells/VBZ
here/RB
./.
He/PRP
wo/MD
n't/RB
for/IN
long/RB
,/,
because/IN
his/PRP$
old/JJ
state/NN
sources/NNS
of/IN
rye/NN
and/CC
potatoes/NNS
are/VBP
drying/VBG
up/RP
./.
``/``
There/EX
's/VBZ
no/DT
feed/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
You/PRP
ca/MD
n't/RB
buy/VB
anything/NN
nowadays/RB
./.
I/PRP
do/VBP
n't/RB
know/VB
why/WRB
./.
''/''
Edward/NNP
Chojnowski/NNP
does/VBZ
./.
His/PRP$
truck/NN
is/VBZ
parked/VBN
across/IN
the/DT
field/NN
,/,
in/IN
a/DT
row/NN
of/IN
grain/NN
sellers/NNS
./.
Like/IN
the/DT
others/NNS
,/,
it/PRP
is/VBZ
loaded/VBN
with/IN
rye/NN
,/,
wheat/NN
and/CC
oats/NN
in/IN
sacks/NNS
labeled/VBN
``/``
Asbestos/NN
./.
Made/VBN
in/IN
U.S.S.R/NNP
./.
''/''
The/DT
farmer/NN
at/IN
the/DT
next/JJ
truck/NN
shouts/VBZ
,/,
``/``
Wheat/NN
!/.
It/PRP
's/VBZ
nice/JJ
!/.
It/PRP
wo/MD
n't/RB
be/VB
cheaper/JJR
!/.
We/PRP
sell/VBP
direct/RB
!/.
''/''
A/DT
heavy/JJ
,/,
kerchiefed/JJ
woman/NN
runs/VBZ
a/DT
handful/NN
through/IN
her/PRP$
fingers/NNS
,/,
and/CC
counts/VBZ
him/PRP
out/RP
a/DT
pile/NN
of/IN
zlotys/NNS
./.
``/``
Country/NN
people/NNS
breed/VBP
pigs/NNS
,/,
''/''
says/VBZ
Mr./NNP
Chojnowski/NNP
,/,
leaning/VBG
against/IN
the/DT
back/NN
of/IN
his/PRP$
truck/NN
./.
``/``
They/PRP
ca/MD
n't/RB
buy/VB
feed/NN
from/IN
the/DT
state/NN
./.
There/EX
is/VBZ
n't/RB
enough/NN
./.
Some/DT
state/NN
middlemen/NNS
come/VBP
to/TO
buy/VB
from/IN
me/PRP
./.
I/PRP
sell/VBP
--/:
a/DT
little/JJ
./.
I/PRP
am/VBP
waiting/VBG
./.
I/PRP
have/VBP
plenty/NN
more/JJR
at/IN
home/NN
./.
''/''
On/IN
this/DT
morning/NN
,/,
he/PRP
does/VBZ
n't/RB
sell/VB
much/JJ
in/IN
Radzymin/NNP
,/,
either/RB
./.
At/IN
closing/NN
time/NN
,/,
farmers/NNS
cart/VBP
out/RP
most/JJS
of/IN
what/WP
they/PRP
carted/VBD
in/RP
./.
A/DT
private/JJ
market/NN
like/IN
this/DT
just/RB
is/VBZ
n't/RB
big/JJ
enough/RB
to/TO
absorb/VB
all/PDT
that/DT
business/NN
./.
The/DT
hulk/NN
of/IN
Stalinism/NNP
,/,
it/PRP
seems/VBZ
,/,
will/MD
not/RB
quickly/RB
crumble/VB
away/RP
./.
State/NN
monopolies/NNS
will/MD
keep/VB
on/RB
stifling/VBG
trade/NN
,/,
``/``
free/JJ
''/''
prices/NNS
or/CC
not/RB
,/,
until/IN
something/NN
else/RB
replaces/VBZ
them/PRP
./.
Polish/JJ
agriculture/NN
will/MD
need/VB
a/DT
whole/JJ
private/JJ
network/NN
of/IN
procurement/NN
,/,
processing/NN
and/CC
distribution/NN
--/:
plus/CC
a/DT
new/JJ
manufacturing/NN
industry/NN
to/TO
supply/VB
it/PRP
with/IN
tractors/NNS
,/,
pesticides/NNS
,/,
fertilizers/NNS
and/CC
feed/NN
./.
The/DT
Communists/NNPS
spent/VBD
40/CD
years/NNS
working/VBG
to/TO
ensure/VB
that/IN
no/DT
such/JJ
capitalistic/JJ
structures/NNS
ever/RB
arose/VBD
here/RB
./.
Building/VBG
them/PRP
now/RB
will/MD
require/VB
undergirding/NN
from/IN
the/DT
West/NNP
,/,
and/CC
removal/NN
of/IN
political/JJ
deadwood/NN
,/,
a/DT
job/NN
that/DT
Solidarity/NNP
has/VBZ
barely/RB
started/VBN
./.
But/CC
Polish/JJ
agriculture/NN
does/VBZ
possess/VB
one/CD
great/JJ
asset/NN
already/RB
:/:
the/DT
private/JJ
farmer/NN
./.
``/``
We/PRP
are/VBP
dealing/VBG
with/IN
real/JJ
entrepreneurs/NNS
,/,
''/''
says/VBZ
Antoni/NNP
Leopold/NNP
,/,
an/DT
economist/NN
who/WP
advises/VBZ
Rural/NNP
Solidarity/NNP
,/,
the/DT
union/NN
's/POS
countryside/NN
offshoot/NN
./.
``/``
There/EX
are/VBP
a/DT
lot/NN
of/IN
them/PRP
,/,
and/CC
they/PRP
have/VBP
property/NN
./.
''/''
Polish/JJ
peasants/NNS
,/,
spurning/VBG
the/DT
collectivizers/NNS
,/,
were/VBD
once/RB
a/DT
source/NN
of/IN
shame/NN
to/TO
orthodox/JJ
Communists/NNPS
./.
Now/RB
,/,
among/IN
Communist/JJ
reformers/NNS
,/,
they/PRP
are/VBP
objects/NNS
of/IN
envy/NN
./.
Food/NN
is/VBZ
the/DT
reformer/JJ
's/POS
top/NN
priority/NN
,/,
the/DT
key/NN
to/TO
popular/JJ
support/NN
./.
As/IN
the/DT
Chinese/NNPS
have/VBP
shown/VBN
and/CC
the/DT
Soviets/NNPS
are/VBP
learning/VBG
,/,
family/NN
farms/NNS
thrive/VBP
where/WRB
collectives/NNS
fail/VBP
./.
Ownership/NN
,/,
it/PRP
seems/VBZ
,/,
is/VBZ
the/DT
best/JJS
fertilizer/NN
./.
The/DT
Poles/NNPS
have/VB
had/VBN
it/PRP
all/RB
along/RB
./.
Poland/NNP
's/POS
2.7/CD
million/CD
small/JJ
private/JJ
farms/NNS
cover/VBP
76/CD
%/NN
of/IN
its/PRP$
arable/JJ
land/NN
./.
On/IN
it/PRP
,/,
a/DT
quarter/NN
of/IN
the/DT
country/NN
's/POS
39/CD
million/CD
people/NNS
produce/VBP
three-quarters/NNS
of/IN
its/PRP$
grain/NN
,/,
beef/NN
,/,
eggs/NNS
and/CC
milk/NN
,/,
and/CC
nine-tenths/NNS
of/IN
its/PRP$
fruit/NN
,/,
vegetables/NNS
and/CC
potatoes/NNS
./.
Like/IN
the/DT
Roman/NNP
Catholic/NNP
Church/NNP
,/,
the/DT
Polish/JJ
peasant/NN
is/VBZ
a/DT
pillar/NN
of/IN
the/DT
nation/NN
./.
Try/VB
as/IN
they/PRP
might/MD
,/,
the/DT
Communists/NNPS
could/MD
neither/RB
replace/VB
nor/CC
break/VB
him/PRP
./.
And/CC
they/PRP
did/VBD
try/VB
./.
A/DT
few/JJ
miles/NNS
past/IN
Radzymin/NNP
,/,
a/DT
dirt/NN
road/NN
narrows/VBZ
to/TO
a/DT
track/NN
of/IN
sand/NN
and/CC
leads/VBZ
into/IN
Zalubice/NNP
,/,
a/DT
village/NN
of/IN
tumbledown/JJ
farms/NNS
./.
Czeslaw/NNP
Pyszkiewicz/NNP
owns/VBZ
30/CD
acres/NNS
in/IN
14/CD
scattered/JJ
scraps/NNS
./.
He/PRP
grows/VBZ
rye/NN
and/CC
potatoes/NNS
for/IN
a/DT
few/JJ
hens/NNS
,/,
five/CD
cows/NNS
and/CC
25/CD
piglets/NNS
./.
In/IN
patched/JJ
pants/NNS
and/CC
torn/JJ
shoes/NNS
,/,
he/PRP
stands/VBZ
in/IN
his/PRP$
barnyard/NN
eyeing/VBG
the/DT
ground/NN
with/IN
a/DT
look/NN
both/DT
helpless/JJ
and/CC
sardonic/JJ
./.
``/``
It/PRP
's/VBZ
bad/JJ
soil/NN
,/,
''/''
he/PRP
says/VBZ
./.
Until/IN
1963/CD
,/,
it/PRP
was/VBD
good/JJ
soil/NN
./.
Then/RB
the/DT
state/NN
put/VBD
in/RP
a/DT
reservoir/NN
to/TO
supply/VB
the/DT
area/NN
with/IN
drinking/NN
water/NN
./.
Farmers/NNS
lay/VBD
down/RP
before/IN
the/DT
bulldozers/NNS
./.
Their/PRP$
protest/NN
was/VBD
ignored/VBN
./.
The/DT
dam/NN
caused/VBD
the/DT
water/NN
level/NN
to/TO
drop/VB
in/IN
Zalubice/NNP
./.
Mr/NNP
Pyszkiewicz/NNP
smiles/VBZ
and/CC
his/PRP$
brow/NN
furrows/VBZ
./.
He/PRP
expected/VBD
as/RB
much/JJ
./.
In/IN
his/PRP$
lifetime/NN
,/,
47/CD
years/NNS
,/,
the/DT
Communists/NNPS
brought/VBD
electricity/NN
to/TO
his/PRP$
village/NN
and/CC
piped/VBD
in/RP
drinking/NN
water/NN
from/IN
the/DT
reservoir/NN
./.
No/DT
phones/NNS
./.
No/DT
gas/NN
./.
``/``
We/PRP
wanted/VBD
them/PRP
to/TO
build/VB
a/DT
road/NN
here/RB
,/,
''/''
he/PRP
says/VBZ
./.
``/``
They/PRP
started/VBD
,/,
and/CC
then/RB
abandoned/VBD
it/PRP
./.
''/''
A/DT
tractor/NN
,/,
his/PRP$
only/RB
mechanized/JJ
equipment/NN
,/,
stands/VBZ
in/IN
front/NN
of/IN
the/DT
pigsty/NN
./.
``/``
It/PRP
's/VBZ
Russian/JJ
./.
Good/JJ
for/IN
nothing/NN
./.
Parts/NNS
are/VBP
a/DT
tragedy/NN
./.
Even/RB
if/IN
I/PRP
had/VBD
a/DT
lot/NN
of/IN
money/NN
,/,
I/PRP
could/MD
n't/RB
buy/VB
what/WP
I/PRP
need/VBP
./.
''/''
The/DT
farmer/NN
can/MD
say/VB
the/DT
same/JJ
for/IN
coal/NN
,/,
cement/NN
,/,
saw/NN
blades/NNS
./.
In/IN
Poland/NNP
,/,
only/RB
4/CD
%/NN
of/IN
all/DT
investment/NN
goes/VBZ
toward/IN
making/VBG
things/NNS
farmers/NNS
want/VBP
;/:
in/IN
the/DT
West/NNP
,/,
it/PRP
is/VBZ
closer/RBR
to/TO
20/CD
%/NN
./.
The/DT
few/JJ
big/JJ
state/NN
farms/NNS
take/VBP
first/JJ
crack/NN
at/IN
what/WP
does/VBZ
get/VB
made/VBN
./.
They/PRP
use/VBP
60/CD
%/NN
more/JJR
fertilizer/NN
per/IN
acre/NN
,/,
twice/RB
the/DT
high-grade/JJ
feed/NN
./.
Yet/CC
their/PRP$
best/JJS
boast/NN
is/VBZ
that/IN
they/PRP
produce/VBP
32/CD
%/NN
of/IN
Polish/NNP
pork/NN
./.
``/``
I/PRP
've/VBP
heard/VBN
from/IN
friends/NNS
that/IN
state/NN
farms/NNS
are/VBP
subsidized/VBN
,/,
''/''
Mr./NNP
Pyszkiewicz/NNP
says/VBZ
as/IN
his/PRP$
wife/NN
,/,
Wieslawa/NNP
,/,
sets/VBZ
some/DT
chairs/NNS
out/RP
in/IN
the/DT
sun/NN
./.
``/``
We/PRP
have/VBP
one/CD
near/IN
here/RB
./.
There/EX
is/VBZ
a/DT
lot/NN
of/IN
waste/NN
./.
A/DT
private/JJ
farmer/NN
never/RB
wastes/VBZ
anything/NN
./.
''/''
The/DT
state/NN
quit/VBD
shoving/VBG
peasants/NNS
onto/IN
its/PRP$
subsidized/JJ
farms/NNS
over/IN
30/CD
years/NNS
ago/RB
./.
But/CC
it/PRP
never/RB
did/VBD
let/VB
up/RP
on/IN
the/DT
pressure/NN
./.
Until/IN
recently/RB
,/,
a/DT
farmer/NN
with/IN
no/DT
heir/NN
had/VBD
to/TO
will/VB
the/DT
state/NN
his/PRP$
land/NN
to/TO
collect/VB
his/PRP$
pension/NN
./.
The/DT
pension/NN
's/POS
size/NN
still/RB
depends/VBZ
on/IN
how/WRB
much/JJ
produce/NN
he/PRP
sells/VBZ
the/DT
state/NN
./.
His/PRP$
allotment/NN
of/IN
materials/NNS
also/RB
did/VBD
,/,
until/IN
the/DT
state/NN
could/MD
n't/RB
hold/VB
up/RP
its/PRP$
end/NN
of/IN
that/DT
bargain/NN
./.
Yet/RB
the/DT
state/NN
alone/RB
sells/VBZ
seeds/NNS
and/CC
machines/NNS
./.
When/WRB
supplies/NNS
are/VBP
short/JJ
,/,
it/PRP
often/RB
hands/VBZ
them/PRP
over/RP
only/RB
in/IN
exchange/NN
for/IN
milk/NN
or/CC
grain/NN
./.
A/DT
private/JJ
farmer/NN
in/IN
Poland/NNP
is/VBZ
free/JJ
to/TO
buy/VB
and/CC
sell/VB
land/NN
,/,
hire/VB
help/NN
,/,
decide/VB
what/WP
to/TO
grow/VB
and/CC
how/WRB
to/TO
grow/VB
it/PRP
./.
He/PRP
is/VBZ
free/JJ
to/TO
invest/VB
in/IN
chickens/NNS
,/,
and/CC
to/TO
fail/VB
for/IN
lack/NN
of/IN
chicken/NN
wire/NN
./.
He/PRP
has/VBZ
plenty/NN
of/IN
freedom/NN
--/:
but/CC
no/DT
choices/NNS
./.
``/``
I/PRP
'm/VBP
on/IN
my/PRP$
own/JJ
land/NN
,/,
''/''
Mr./NNP
Pyszkiewicz/NNP
says/VBZ
./.
``/``
I/PRP
do/VBP
n't/RB
have/VB
to/TO
listen/VB
to/TO
what/WP
anybody/NN
tells/VBZ
me/PRP
to/TO
do/VB
./.
''/''
``/``
Sometimes/RB
,/,
''/''
says/VBZ
his/PRP$
wife/NN
,/,
``/``
we/PRP
're/VBP
happy/JJ
about/IN
that/DT
./.
''/''
By/IN
starving/VBG
the/DT
peasant/NN
,/,
the/DT
Communists/NNPS
have/VBP
starved/VBN
Poland/NNP
./.
Villages/NNS
like/IN
Zalubice/NNP
exist/VBP
in/IN
a/DT
desert/NN
of/IN
poor/JJ
schools/NNS
and/CC
few/JJ
doctors/NNS
./.
Farm/NN
income/NN
is/VBZ
15/CD
%/NN
below/IN
the/DT
average/NN
./.
The/DT
young/JJ
leave/VBP
,/,
especially/RB
girls/NNS
who/WP
wo/MD
n't/RB
milk/VB
cows/NNS
by/IN
hand/NN
./.
Some/DT
men/NNS
stay/VBP
,/,
their/PRP$
best/JJS
friend/NN
a/DT
bottle/NN
of/IN
vodka/NN
,/,
but/CC
two/CD
million/CD
acres/NNS
have/VBP
gone/VBN
fallow/JJ
./.
Without/IN
machines/NNS
,/,
good/JJ
farms/NNS
ca/MD
n't/RB
get/VB
bigger/JJR
./.
So/IN
the/DT
potato/NN
crop/NN
,/,
once/RB
47/CD
million/CD
tons/NNS
,/,
is/VBZ
down/RB
to/TO
35/CD
million/CD
./.
Meat/NN
consumption/NN
is/VBZ
at/IN
1979/CD
's/POS
level/NN
,/,
pork/NN
production/NN
at/IN
1973/CD
's/POS
,/,
milk/NN
output/NN
at/IN
1960/CD
's/POS
./.
If/IN
a/DT
food/NN
crisis/NN
undid/VBD
the/DT
Communists/NNPS
,/,
a/DT
food/NN
revolution/NN
will/MD
make/VB
Solidarity/NNP
./.
The/DT
potential/NN
is/VBZ
displayed/VBN
along/IN
every/DT
road/NN
into/IN
Warsaw/NNP
:/:
row/NN
upon/IN
row/NN
of/IN
greenhouses/NNS
,/,
stretching/VBG
out/RP
behind/IN
modern/JJ
mansions/NNS
that/WDT
trumpet/VBP
their/PRP$
owners/NNS
'/POS
wealth/NN
./.
Vegetables/NNS
are/VBP
abundant/JJ
and/CC
full/JJ
of/IN
flavor/NN
in/IN
Poland/NNP
,/,
the/DT
pickles/NNS
and/CC
sauerkraut/NN
sublime/JJ
,/,
the/DT
state/NN
monopolies/NNS
long/RB
broken/JJ
./.
Grain/NN
,/,
milk/NN
and/CC
meat/NN
come/VBP
next/RB
./.
A/DT
private/JJ
challenge/NN
to/TO
the/DT
monolithic/JJ
tractor/NN
industry/NN
will/MD
take/VB
more/JJR
time/NN
and/CC
money/NN
than/IN
Poland/NNP
can/MD
spare/VB
,/,
although/IN
a/DT
smokehouse/NN
or/CC
a/DT
local/JJ
dairy/NN
can/MD
spring/VB
up/RP
fast/RB
./.
Poland/NNP
makes/VBZ
no/DT
machinery/NN
for/IN
a/DT
plant/NN
on/IN
that/DT
scale/NN
./.
Solidarity/NNP
wants/VBZ
it/PRP
from/IN
the/DT
West/NNP
./.
Maria/NNP
Stolzman/NNP
,/,
one/CD
of/IN
its/PRP$
farm/NN
experts/NNS
,/,
lays/VBZ
it/PRP
on/IN
the/DT
line/NN
:/:
``/``
The/DT
World/NNP
Bank/NNP
will/MD
be/VB
brought/VBN
in/RP
to/TO
help/VB
us/PRP
destroy/VB
the/DT
old/JJ
system/NN
./.
''/''
Felix/NNP
Siemienas/NNP
is/VBZ
destroying/VBG
it/PRP
now/RB
./.
He/PRP
packs/VBZ
pork/NN
./.
A/DT
law/NN
went/VBD
on/IN
the/DT
books/NNS
in/IN
January/NNP
that/WDT
let/VBD
him/PRP
smoke/VB
bacon/NN
without/IN
breeding/VBG
pigs/NNS
./.
He/PRP
cashed/VBD
in/RP
./.
Poland/NNP
is/VBZ
short/JJ
on/IN
enterprises/NNS
,/,
not/RB
enterprise/NN
./.
``/``
I/PRP
pay/VBP
a/DT
lot/NN
to/TO
the/DT
farmer/NN
and/CC
five/CD
times/NNS
the/DT
state/NN
salary/NN
to/TO
my/PRP$
employees/NNS
,/,
''/''
he/PRP
says/VBZ
./.
He/PRP
is/VBZ
in/IN
Warsaw/NNP
to/TO
open/VB
a/DT
shop/NN
./.
``/``
I/PRP
hire/VBP
transportation/NN
,/,
and/CC
my/PRP$
customers/NNS
have/VBP
fresh/JJ
cold/NN
cuts/NNS
every/DT
day/NN
./.
I/PRP
do/VBP
n't/RB
subsidize/VB
anyone/NN
./.
Everyone/NN
around/IN
me/PRP
lives/VBZ
well/RB
./.
Yes/UH
,/,
my/PRP$
prices/NNS
are/VBP
high/JJ
./.
If/IN
nobody/NN
buys/VBZ
,/,
I/PRP
bring/VBP
my/PRP$
prices/NNS
down/RP
./.
That/DT
's/VBZ
the/DT
rule/NN
./.
That/DT
's/VBZ
the/DT
market/NN
./.
''/''
Mr./NNP
Siemienas/NNP
is/VBZ
making/VBG
a/DT
fortune/NN
--/:
$/$
10,000/CD
a/DT
month/NN
,/,
he/PRP
says/VBZ
./.
He/PRP
has/VBZ
bought/VBN
some/DT
trendy/JJ
Western/JJ
clothes/NNS
,/,
and/CC
a/DT
green/JJ
Mercedes/NNP
with/IN
an/DT
American/JJ
flag/NN
in/IN
the/DT
window/NN
./.
But/CC
the/DT
meat-processing/JJ
machines/NNS
he/PRP
picked/VBD
up/RP
are/VBP
50/CD
years/NNS
old/JJ
./.
``/``
I/PRP
do/VBP
n't/RB
want/VB
expensive/JJ
machines/NNS
./.
If/IN
the/DT
situation/NN
changes/VBZ
,/,
I/PRP
'll/MD
get/VB
stuck/VBN
with/IN
them/PRP
./.
''/''
That/DT
's/POS
politics/NNS
./.
By/IN
taking/VBG
power/NN
in/IN
a/DT
deal/NN
with/IN
the/DT
Peasant/NNP
Party/NNP
's/POS
onetime/JJ
Communist/JJ
stooges/NNS
,/,
Solidarity/NNP
has/VBZ
spooked/VBN
the/DT
rural/JJ
entrepreneur/NN
./.
Rural/JJ
Solidarity/NNP
objected/VBD
,/,
to/TO
no/DT
avail/NN
,/,
when/WRB
Solidarity/NNP
leader/NN
Lech/NNP
Walesa/NNP
accepted/VBD
the/DT
Peasants/NNPS
'/POS
support/NN
./.
It/PRP
objected/VBD
again/RB
in/IN
September/NNP
when/WRB
Prime/NNP
Minister/NNP
Tadeusz/NNP
Mazowiecki/NNP
reluctantly/RB
named/VBD
a/DT
Peasant/NNP
Party/NNP
man/NN
as/IN
his/PRP$
agriculture/NN
minister/NN
./.
Both/CC
the/DT
Peasants/NNPS
and/CC
Rural/NNP
Solidarity/NNP
are/VBP
forming/VBG
new/JJ
political/JJ
parties/NNS
for/IN
farmers/NNS
./.
The/DT
Peasants/NNPS
can/MD
make/VB
a/DT
credible/JJ
case/NN
,/,
against/IN
Solidarity/NNP
,/,
that/IN
hell-bent/JJ
reform/NN
will/MD
drive/VB
millions/NNS
from/IN
the/DT
land/NN
./.
Next/JJ
Spring/NN
,/,
the/DT
two/CD
will/NN
battle/NN
in/IN
local/JJ
elections/NNS
./.
But/CC
until/IN
then/RB
,/,
and/CC
probably/RB
long/RB
afterward/RB
,/,
the/DT
Communists/NNPS
'/POS
apparat/NN
of/IN
obstruction/NN
--/:
from/IN
the/DT
head/NN
of/IN
the/DT
dairy/NN
co-op/NN
to/TO
the/DT
village/NN
bank/NN
manager/NN
--/:
will/MD
stay/VB
planted/VBN
in/IN
the/DT
Polish/JJ
countryside/NN
./.
``/``
We/PRP
know/VBP
how/WRB
to/TO
get/VB
from/IN
capitalism/NN
to/TO
socialism/NN
,/,
''/''
Sergiusz/NNP
Niciporuk/NNP
is/VBZ
saying/VBG
one/CD
afternoon/NN
./.
``/``
We/PRP
do/VBP
n't/RB
know/VB
how/WRB
to/TO
get/VB
from/IN
socialism/NN
to/TO
capitalism/NN
./.
''/''
He/PRP
farms/VBZ
12/CD
acres/NNS
in/IN
Grabowiec/NNP
,/,
two/CD
miles/NNS
from/IN
the/DT
Soviet/JJ
border/NN
in/IN
one/CD
of/IN
Poland/NNP
's/POS
poorest/JJS
places/NNS
./.
Now/RB
he/PRP
is/VBZ
mounting/VBG
the/DT
steps/NNS
of/IN
a/DT
stucco/NN
building/NN
in/IN
a/DT
nearby/JJ
village/NN
,/,
on/IN
a/DT
visit/NN
to/TO
the/DT
Communist/JJ
administrator/NN
,/,
the/DT
``/``
naczelnik/FW
./.
''/''
``/``
Many/JJ
people/NNS
in/IN
Poland/NNP
hope/VBP
this/DT
government/NN
will/MD
break/VB
down/RP
,/,
''/''
says/VBZ
Mr./NNP
Niciporuk/NNP
,/,
who/WP
belongs/VBZ
to/TO
the/DT
local/JJ
council/NN
and/CC
to/TO
Rural/NNP
Solidarity/NNP
./.
``/``
That/DT
's/VBZ
what/WP
the/DT
naczelnik/FW
counts/VBZ
on/RP
./.
He/PRP
is/VBZ
our/PRP$
most/RBS
dangerous/JJ
enemy/NN
./.
Every/DT
time/NN
he/PRP
sees/VBZ
me/PRP
,/,
he/PRP
gets/VBZ
very/RB
nervous/JJ
./.
''/''
The/DT
farmer/NN
barges/VBZ
into/IN
the/DT
naczelnik/FW
's/POS
office/NN
./.
A/DT
thin/JJ
man/NN
in/IN
a/DT
gray/JJ
suit/NN
looks/VBZ
up/RP
from/IN
a/DT
newspaper/NN
./.
Mr./NNP
Niciporuk/NNP
sits/VBZ
./.
Anatol/NNP
Pawlowski/NNP
's/POS
leg/NN
begins/VBZ
jiggling/VBG
beneath/IN
his/PRP$
desk/NN
./.
``/``
Solidarity/NNP
does/VBZ
n't/RB
care/VB
for/IN
the/DT
good/NN
of/IN
this/DT
region/NN
,/,
''/''
he/PRP
says/VBZ
after/IN
a/DT
few/JJ
pleasantries/NNS
./.
``/``
They/PRP
want/VBP
to/TO
turn/VB
everything/NN
upside/RB
down/RB
in/IN
a/DT
week/NN
./.
Mr./NNP
Niciporuk/NNP
here/RB
wants/VBZ
60/CD
acres/NNS
used/VBN
at/IN
the/DT
moment/NN
by/IN
a/DT
state/NN
farm/NN
./.
He/PRP
ca/MD
n't/RB
guarantee/VB
that/IN
he/PRP
can/MD
use/VB
it/PRP
any/RB
better/RBR
./.
''/''
``/``
I/PRP
am/VBP
ready/JJ
at/IN
any/DT
moment/NN
to/TO
compete/VB
with/IN
a/DT
state/NN
farm/NN
./.
''/''
The/DT
naczelnik/FW
averts/VBZ
his/PRP$
eyes/NNS
./.
``/``
What/WP
have/VBP
you/PRP
got/VBN
?/.
Not/RB
even/RB
a/DT
tractor/NN
./.
And/CC
you/PRP
want/VBP
to/TO
make/VB
wicker/NN
baskets/NNS
,/,
too/RB
./.
''/''
``/``
I/PRP
can/MD
do/VB
five/CD
things/NNS
at/IN
once/RB
--/:
to/TO
be/VB
a/DT
businessman/NN
./.
''/''
``/``
Big/JJ
business/NN
,/,
''/''
Mr./NNP
Pawlowski/NNP
snorts/VBZ
in/IN
English/NNP
./.
The/DT
farmer/NN
stands/VBZ
to/TO
go/VB
./.
The/DT
naczelnik/FW
stands/VBZ
,/,
too/RB
./.
``/``
I/PRP
care/VBP
very/RB
much/RB
for/IN
this/DT
post/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
Eight/CD
years/NNS
I/PRP
've/VBP
had/VBD
it/PRP
./.
A/DT
cultural/JJ
center/NN
has/VBZ
been/VBN
built/VBN
,/,
shops/NNS
./.
Suddenly/RB
,/,
I/PRP
am/VBP
not/RB
a/DT
comfortable/JJ
man/NN
for/IN
Solidarity/NNP
./.
I/PRP
have/VBP
accomplished/VBN
too/RB
much/JJ
./.
They/PRP
want/VBP
to/TO
do/VB
more/JJR
./.
I/PRP
wish/VBP
them/PRP
all/PDT
the/DT
best/JJS
!/.
''/''
The/DT
farmer/NN
leaves/VBZ
./.
And/CC
the/DT
naczelnik/FW
shuts/VBZ
his/PRP$
door/NN
./.
The/DT
House/NNP
approved/VBD
a/DT
short-term/JJ
spending/NN
bill/NN
to/TO
keep/VB
the/DT
government/NN
operating/VBG
through/IN
Nov./NNP
15/CD
and/CC
provide/VB
$/$
2.85/CD
billion/CD
in/IN
emergency/NN
funds/NNS
to/TO
assist/VB
in/IN
the/DT
recovery/NN
from/IN
Hurricane/NNP
Hugo/NNP
and/CC
the/DT
California/NNP
earthquake/NN
./.
The/DT
321-99/CD
roll/NN
call/NN
vote/NN
reflected/VBD
broad/JJ
support/NN
for/IN
the/DT
disaster/NN
assistance/NN
,/,
but/CC
the/DT
cost/NN
to/TO
the/DT
Treasury/NNP
is/VBZ
sure/JJ
to/TO
aggravate/VB
budget/NN
pressures/NNS
this/DT
year/NN
and/CC
next/JJ
under/IN
the/DT
Gramm-Rudman/NNP
deficit/NN
reduction/NN
law/NN
./.
By/IN
a/DT
lopsided/JJ
401-18/CD
margin/NN
,/,
the/DT
chamber/NN
rejected/VBD
an/DT
effort/NN
to/TO
waive/VB
Gramm-Rudman/NNP
for/IN
purposes/NNS
of/IN
addressing/VBG
the/DT
two/CD
disasters/NNS
,/,
and/CC
budget/NN
analysts/NNS
estimate/VBP
the/DT
increased/JJ
appropriations/NNS
will/MD
widen/VB
the/DT
fiscal/JJ
1990/CD
deficit/NN
by/IN
at/IN
least/JJS
$/$
1.44/CD
billion/CD
unless/IN
offsetting/VBG
spending/NN
cuts/NNS
or/CC
new/JJ
revenues/NNS
are/VBP
found/VBN
by/IN
Congress/NNP
./.
The/DT
budget/NN
impact/NN
will/MD
be/VB
greater/JJR
still/RB
in/IN
fiscal/JJ
1991/CD
,/,
and/CC
the/DT
issue/NN
forced/VBD
a/DT
confrontation/NN
between/IN
the/DT
Appropriations/NNP
Committee/NNP
leadership/NN
and/CC
Budget/NNP
Committee/NNP
Chairman/NNP
Leon/NNP
Panetta/NNP
,/,
whose/WP$
California/NNP
district/NN
was/VBD
at/IN
the/DT
center/NN
of/IN
the/DT
earthquake/NN
last/JJ
week/NN
./.
Going/VBG
to/TO
the/DT
well/NN
of/IN
the/DT
chamber/NN
,/,
Mr./NNP
Panetta/NNP
demanded/VBD
the/DT
costs/NNS
be/VB
fully/RB
counted/VBN
./.
His/PRP$
prominent/JJ
role/NN
put/VBD
him/PRP
in/IN
the/DT
awkward/JJ
position/NN
of/IN
challenging/VBG
the/DT
very/JJ
committee/NN
members/NNS
on/IN
whom/WP
his/PRP$
state/NN
will/MD
be/VB
most/RBS
dependent/JJ
in/IN
the/DT
months/NNS
ahead/RB
./.
``/``
We/PRP
do/VBP
not/RB
come/VB
to/TO
this/DT
House/NNP
asking/VBG
for/IN
any/DT
handout/NN
,/,
''/''
said/VBD
the/DT
California/NNP
Democrat/NNP
./.
``/``
We/PRP
do/VB
not/RB
intend/VB
to/TO
hide/VB
these/DT
costs/NNS
from/IN
the/DT
American/JJ
people/NNS
./.
''/''
The/DT
$/$
2.85/CD
billion/CD
package/NN
incorporates/VBZ
$/$
500/CD
million/CD
for/IN
low-interest/JJ
disaster/NN
loans/NNS
,/,
$/$
1/CD
billion/CD
in/IN
highway/NN
construction/NN
funds/NNS
,/,
and/CC
$/$
1.35/CD
billion/CD
divided/VBN
between/IN
general/JJ
emergency/NN
assistance/NN
and/CC
a/DT
reserve/NN
to/TO
be/VB
available/JJ
to/TO
President/NNP
Bush/NNP
to/TO
meet/VB
unanticipated/JJ
costs/NNS
from/IN
the/DT
two/CD
disasters/NNS
./.
The/DT
funds/NNS
are/VBP
in/IN
addition/NN
to/TO
$/$
1.1/CD
billion/CD
appropriated/VBN
last/JJ
month/NN
to/TO
assist/VB
in/IN
the/DT
recovery/NN
from/IN
Hugo/NNP
,/,
bringing/VBG
the/DT
total/NN
for/IN
the/DT
two/CD
disasters/NNS
to/TO
nearly/RB
$/$
4/CD
billion/CD
in/IN
unanticipated/JJ
spending/NN
./.
Because/IN
of/IN
the/DT
vagaries/NNS
of/IN
Gramm-Rudman/NNP
,/,
the/DT
immediate/JJ
impact/NN
is/VBZ
relatively/RB
small/JJ
./.
But/CC
the/DT
appropriations/NNS
set/VBD
in/IN
motion/NN
spending/NN
that/WDT
adds/VBZ
to/TO
an/DT
already/RB
grim/JJ
budget/NN
picture/NN
for/IN
fiscal/JJ
1991/CD
./.
Within/IN
the/DT
appropriations/NNS
process/NN
,/,
the/DT
situation/NN
is/VBZ
even/RB
more/RBR
difficult/JJ
since/IN
the/DT
costs/NNS
will/MD
be/VB
counted/VBN
against/IN
the/DT
share/NN
of/IN
funds/NNS
to/TO
be/VB
allocated/VBN
to/TO
those/DT
subcommittees/NNS
that/WDT
recently/RB
have/VBP
had/VBD
the/DT
greatest/JJS
difficulty/NN
in/IN
staying/VBG
within/IN
the/DT
budget/NN
./.
The/DT
underlying/JJ
bill/NN
approved/VBN
yesterday/NN
is/VBZ
required/VBN
to/TO
keep/VB
the/DT
government/NN
operating/VBG
past/IN
midnight/NN
tonight/NN
,/,
and/CC
this/DT
urgency/NN
has/VBZ
contributed/VBN
to/TO
the/DT
speed/NN
--/:
and/CC
,/,
critics/NNS
say/VBP
,/,
mistakes/NNS
--/:
that/WDT
have/VBP
accompanied/VBN
the/DT
package/NN
of/IN
disaster/NN
assistance/NN
./.
The/DT
hastily/RB
drafted/VBN
measure/NN
could/MD
hurt/VB
California/NNP
by/IN
requiring/VBG
it/PRP
to/TO
put/VB
up/IN
more/JJR
matching/JJ
funds/NNS
for/IN
emergency/NN
highway/NN
assistance/NN
than/IN
otherwise/RB
would/MD
be/VB
required/VBN
./.
And/CC
the/DT
state/NN
's/POS
delegation/NN
is/VBZ
fearful/JJ
that/IN
the/DT
new/JJ
funding/NN
will/MD
be/VB
counted/VBN
against/IN
a/DT
separate/JJ
$/$
185/CD
million/CD
in/IN
federal/JJ
highway/NN
funds/NNS
it/PRP
would/MD
expect/VB
to/TO
receive/VB
under/IN
its/PRP$
normal/JJ
allocation/NN
this/DT
year/NN
./.
Also/RB
,/,
the/DT
high/JJ
price/NN
of/IN
San/NNP
Francisco/NNP
real/JJ
estate/NN
puts/VBZ
the/DT
state/NN
at/IN
odds/NNS
with/IN
federal/JJ
regulations/NNS
more/RBR
attuned/JJ
to/TO
the/DT
national/JJ
average/NN
./.
For/IN
example/NN
,/,
disaster/NN
loans/NNS
,/,
which/WDT
will/MD
go/VB
to/TO
small/JJ
businesses/NNS
and/CC
homeowners/NNS
,/,
offer/VBP
credit/NN
as/RB
low/JJ
as/IN
4/CD
%/NN
in/IN
some/DT
cases/NNS
./.
But/CC
the/DT
San/NNP
Francisco/NNP
delegation/NN
finds/VBZ
itself/PRP
asking/VBG
that/IN
the/DT
cap/NN
per/IN
household/NN
be/VB
lifted/VBN
to/TO
$/$
500,000/CD
from/IN
$/$
100,000/CD
to/TO
assist/VB
the/DT
hard/JJ
hit/NN
but/CC
often/RB
wealthy/JJ
Marina/NNP
district/NN
./.
The/DT
Senate/NNP
is/VBZ
expected/VBN
to/TO
make/VB
some/DT
modifications/NNS
today/NN
,/,
but/CC
both/CC
the/DT
White/NNP
House/NNP
and/CC
Congress/NNP
appear/VBP
most/RBS
anxious/JJ
to/TO
speed/VB
final/JJ
approval/NN
before/IN
tonight/NN
's/POS
deadline/NN
./.
Administration/NNP
pressure/NN
discourages/VBZ
any/DT
effort/NN
to/TO
add/VB
to/TO
total/JJ
funding/NN
,/,
and/CC
the/DT
Senate/NNP
changes/NNS
are/VBP
expected/VBN
to/TO
be/VB
largely/RB
technical/JJ
--/:
dealing/VBG
with/IN
highway/NN
aid/NN
and/CC
lifting/VBG
the/DT
ceiling/NN
on/IN
total/JJ
Small/NNP
Business/NNP
Administration/NNP
loans/NNS
to/TO
$/$
1.8/CD
billion/CD
to/TO
accommodate/VB
the/DT
increased/JJ
activity/NN
expected/VBN
./.
Yesterday/NN
's/POS
floor/NN
action/NN
came/VBD
as/IN
a/DT
House-Senate/NNP
conference/NN
approved/VBD
a/DT
nearly/RB
$/$
8.5/CD
billion/CD
fiscal/JJ
1990/CD
military/JJ
construction/NN
bill/NN
,/,
representing/VBG
a/DT
5/CD
%/NN
reduction/NN
from/IN
last/JJ
year/NN
and/CC
making/VBG
severe/JJ
cuts/NNS
from/IN
Pentagon/NNP
requests/NNS
for/IN
installations/NNS
abroad/RB
./.
An/DT
estimated/JJ
$/$
25.8/CD
million/CD
is/VBZ
allocated/VBN
to/TO
continue/VB
work/NN
in/IN
Oman/NNP
./.
But/CC
all/DT
funding/NN
is/VBZ
cut/VBN
for/IN
the/DT
Philippines/NNPS
,/,
and/CC
projects/NNS
in/IN
South/NNP
Korea/NNP
are/VBP
cut/VBN
to/TO
$/$
13.6/CD
million/CD
,/,
or/CC
less/JJR
than/IN
a/DT
sixth/JJ
of/IN
the/DT
administration/NN
's/POS
request/NN
./.
Closer/RBR
to/TO
home/NN
,/,
the/DT
negotiators/NNS
were/VBD
more/RBR
generous/JJ
./.
An/DT
estimated/JJ
$/$
38.9/CD
million/CD
was/VBD
set/VBN
aside/RB
for/IN
military/JJ
installations/NNS
in/IN
the/DT
home/NN
state/NN
of/IN
North/NNP
Carolina/NNP
Rep./NNP
W.G./NNP
Hefner/NNP
,/,
the/DT
House/NNP
chairman/NN
./.
And/CC
$/$
70.2/CD
million/CD
would/MD
go/VB
to/TO
projects/NNS
in/IN
Tennessee/NNP
represented/VBN
by/IN
his/PRP$
Senate/NNP
counterpart/NN
and/CC
fellow/JJ
Democrat/NNP
,/,
Sen./NNP
James/NNP
Sasser/NNP
./.
Texas/NNP
and/CC
California/NNP
are/VBP
traditionally/RB
powerful/JJ
within/IN
the/DT
conference/NN
,/,
but/CC
equally/RB
striking/JJ
is/VBZ
the/DT
dominance/NN
of/IN
Alaska/NNP
,/,
Pennsylvania/NNP
and/CC
West/NNP
Virginia/NNP
because/IN
of/IN
their/PRP$
power/NN
elsewhere/RB
in/IN
the/DT
appropriations/NNS
process/NN
./.
Senate/NNP
Appropriations/NNP
Committee/NNP
Chairman/NNP
Robert/NNP
Byrd/NNP
D./NNP
,/,
W.Va/NNP
./.
report/NN
language/NN
listing/VBG
$/$
49.4/CD
million/CD
in/IN
projects/NNS
he/PRP
wants/VBZ
in/IN
the/DT
budget/NN
next/JJ
year/NN
./.
No/DT
individual/NN
illustrated/VBD
this/DT
mix/NN
of/IN
power/NN
more/RBR
yesterday/NN
than/IN
Sen./NNP
Daniel/NNP
Inouye/NNP
D./NNP
,/,
Hawaii/NNP
who/WP
chairs/VBZ
the/DT
Senate/NNP
defense/NN
subcommittee/NN
./.
In/IN
the/DT
final/JJ
trading/NN
,/,
the/DT
House/NNP
was/VBD
insistent/JJ
on/IN
setting/VBG
aside/RP
$/$
500/CD
million/CD
to/TO
carry/VB
out/RP
base/NN
closings/NNS
ordered/VBN
to/TO
begin/VB
in/IN
fiscal/JJ
1990/CD
./.
But/CC
it/PRP
gave/VBD
ground/NN
to/TO
Mr./NNP
Inouye/NNP
on/IN
a/DT
number/NN
of/IN
projects/NNS
,/,
ranging/VBG
from/IN
a/DT
$/$
11/CD
million/CD
parking/NN
garage/NN
here/RB
,/,
to/TO
a/DT
land/NN
transfer/NN
in/IN
Hawaii/NNP
,/,
to/TO
a/DT
provision/NN
to/TO
assist/VB
the/DT
Makwah/NNP
Indian/NNP
Tribe/NNP
in/IN
Washington/NNP
state/NN
./.
The/DT
tribe/NN
is/VBZ
one/CD
of/IN
the/DT
poorest/JJS
in/IN
the/DT
Pacific/NNP
Northwest/NNP
./.
Mr./NNP
Inouye/NNP
,/,
who/WP
chairs/VBZ
the/DT
select/JJ
committee/NN
on/IN
Indian/NNP
Affairs/NNP
,/,
used/VBD
his/PRP$
power/NN
to/TO
move/VB
$/$
400,000/CD
from/IN
the/DT
Air/NNP
Force/NNP
to/TO
the/DT
Bureau/NNP
of/IN
Indian/NNP
Affairs/NNP
to/TO
assist/VB
in/IN
renovating/VBG
a/DT
decommissoned/JJ
base/NN
to/TO
accommodate/VB
a/DT
drug/NN
and/CC
alcohol/NN
rehabilitation/NN
center/NN
./.
Meanwhile/RB
,/,
House-Senate/NNP
negotiators/NNS
have/VBP
tentatively/RB
agreed/VBN
on/IN
a/DT
$/$
3.18/CD
billion/CD
anti-drug/JJ
and/CC
anti-crime/JJ
intitiative/NN
,/,
cutting/VBG
other/JJ
federal/JJ
spending/NN
0.43/CD
%/NN
to/TO
pay/VB
for/IN
it/PRP
./.
A/DT
formal/JJ
House-Senate/NNP
conference/NN
is/VBZ
expected/VBN
to/TO
ratify/VB
the/DT
accord/NN
later/RB
this/DT
week/NN
./.
Mobil/NNP
Corp./NNP
is/VBZ
preparing/VBG
to/TO
slash/VB
the/DT
size/NN
of/IN
its/PRP$
work/NN
force/NN
in/IN
the/DT
U.S./NNP
,/,
possibly/RB
as/RB
soon/RB
as/IN
next/JJ
month/NN
,/,
say/VBP
individuals/NNS
familiar/JJ
with/IN
the/DT
company/NN
's/POS
strategy/NN
./.
The/DT
size/NN
of/IN
the/DT
cuts/NNS
is/VBZ
n't/RB
known/VBN
,/,
but/CC
they/PRP
'll/MD
be/VB
centered/VBN
in/IN
the/DT
exploration/NN
and/CC
production/NN
division/NN
,/,
which/WDT
is/VBZ
responsible/JJ
for/IN
locating/VBG
oil/NN
reserves/NNS
,/,
drilling/VBG
wells/NNS
and/CC
pumping/VBG
crude/JJ
oil/NN
and/CC
natural/JJ
gas/NN
./.
Employees/NNS
have/VBP
n't/RB
yet/RB
been/VBN
notified/VBN
./.
Sources/NNS
said/VBD
that/IN
meetings/NNS
to/TO
discuss/VB
the/DT
staff/NN
reductions/NNS
have/VBP
been/VBN
scheduled/VBN
for/IN
Friday/NNP
at/IN
Mobil/NNP
offices/NNS
in/IN
New/NNP
Orleans/NNP
and/CC
Denver/NNP
./.
This/DT
would/MD
be/VB
a/DT
second/JJ
round/NN
of/IN
cuts/NNS
by/IN
Mobil/NNP
,/,
which/WDT
along/RB
with/IN
other/JJ
oil/NN
producers/NNS
and/CC
refiners/NNS
reduced/VBD
its/PRP$
work/NN
force/NN
by/IN
15/CD
%/NN
to/TO
20/CD
%/NN
during/IN
the/DT
mid-1980s/NNS
as/IN
part/NN
of/IN
an/DT
industrywide/JJ
shakeout/NN
./.
Mobil/NNP
's/POS
latest/JJS
move/NN
could/MD
signal/VB
the/DT
beginning/NN
of/IN
further/JJ
reductions/NNS
by/IN
other/JJ
oil/NN
companies/NNS
in/IN
their/PRP$
domestic/JJ
oil-producing/JJ
operations/NNS
./.
In/IN
yesterday/NN
's/POS
third-quarter/JJ
earnings/NNS
report/NN
,/,
the/DT
company/NN
alluded/VBD
to/TO
a/DT
$/$
40/CD
million/CD
provision/NN
for/IN
restructuring/NN
costs/NNS
involving/VBG
U.S./NNP
exploration/NN
and/CC
production/NN
operations/NNS
./.
The/DT
report/NN
says/VBZ
that/IN
``/``
the/DT
restructuring/NN
will/MD
take/VB
place/NN
over/IN
a/DT
two-year/JJ
period/NN
and/CC
will/MD
principally/RB
involve/VB
the/DT
transfer/NN
and/CC
termination/NN
of/IN
employees/NNS
in/IN
our/PRP$
U.S./NNP
operations/NNS
./.
''/''
A/DT
company/NN
spokesman/NN
,/,
reached/VBN
at/IN
his/PRP$
home/NN
last/JJ
night/NN
,/,
would/MD
only/RB
say/VB
that/IN
there/EX
will/MD
be/VB
a/DT
public/JJ
announcement/NN
of/IN
the/DT
reduction/NN
program/NN
by/IN
the/DT
end/NN
of/IN
the/DT
week/NN
./.
Most/JJS
oil/NN
companies/NNS
,/,
including/VBG
Mobil/NNP
,/,
have/VBP
been/VBN
reporting/VBG
lower/JJR
third-quarter/JJ
earnings/NNS
,/,
largely/RB
as/IN
a/DT
result/NN
of/IN
lower/JJR
earnings/NNS
from/IN
chemicals/NNS
as/RB
well/RB
as/IN
refining/NN
and/CC
marketing/NN
businesses/NNS
./.
Individuals/NNS
familiar/JJ
with/IN
Mobil/NNP
's/POS
strategy/NN
say/VBP
that/IN
Mobil/NNP
is/VBZ
reducing/VBG
its/PRP$
U.S./NNP
work/NN
force/NN
because/IN
of/IN
declining/VBG
U.S./NNP
output/NN
./.
Yesterday/NN
,/,
Mobil/NNP
said/VBD
domestic/JJ
exploration/NN
and/CC
production/NN
operations/NNS
had/VBD
a/DT
$/$
16/CD
million/CD
loss/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
while/IN
comparable/JJ
foreign/JJ
operations/NNS
earned/VBD
$/$
234/CD
million/CD
./.
Industrywide/RB
,/,
oil/NN
production/NN
in/IN
this/DT
country/NN
fell/VBD
by/IN
500,000/CD
barrels/NNS
a/DT
day/NN
to/TO
7.7/CD
million/CD
barrels/NNS
in/IN
the/DT
first/JJ
eight/CD
months/NNS
of/IN
this/DT
year/NN
./.
Daily/JJ
output/NN
is/VBZ
expected/VBN
to/TO
decline/VB
by/IN
at/IN
least/JJS
another/DT
500,000/CD
barrels/NNS
next/JJ
year/NN
./.
Some/DT
Mobil/NNP
executives/NNS
were/VBD
dismayed/JJ
that/IN
a/DT
reference/NN
to/TO
the/DT
cutbacks/NNS
was/VBD
included/VBN
in/IN
the/DT
earnings/NNS
report/NN
before/IN
workers/NNS
were/VBD
notified/VBN
./.
One/CD
Mobil/NNP
executive/NN
said/VBD
that/IN
the/DT
$/$
40/CD
million/CD
charge/NN
related/VBN
to/TO
the/DT
action/NN
indicates/VBZ
``/``
a/DT
substantial/JJ
''/''
number/NN
of/IN
people/NNS
will/MD
be/VB
involved/VBN
./.
Some/DT
will/MD
likely/RB
be/VB
offered/VBN
severance/NN
packages/NNS
while/IN
others/NNS
will/MD
be/VB
transferred/VBN
to/TO
overseas/JJ
operations/NNS
./.
The/DT
Justice/NNP
Department/NNP
is/VBZ
in/IN
the/DT
process/NN
of/IN
trying/VBG
to/TO
gain/VB
control/NN
over/IN
a/DT
law/NN
that/IN
federal/JJ
Judge/NNP
David/NNP
Sentelle/NNP
recently/RB
called/VBD
a/DT
``/``
monster/NN
./.
''/''
Needless/JJ
to/TO
say/VB
,/,
he/PRP
was/VBD
talking/VBG
about/IN
RICO/NNP
./.
With/IN
its/PRP$
recently/RB
revised/VBN
guidelines/NNS
for/IN
RICO/NNP
,/,
Justice/NNP
makes/VBZ
it/PRP
clear/JJ
that/IN
the/DT
law/NN
currently/RB
holds/VBZ
too/RB
many/JJ
incentives/NNS
for/IN
abuse/NN
by/IN
prosecutors/NNS
./.
The/DT
text/NN
of/IN
the/DT
``/``
new/JJ
policy/NN
''/''
guidelines/NNS
from/IN
the/DT
Criminal/NNP
Division/NNP
are/VBP
reprinted/VBN
nearby/RB
./.
They/PRP
strongly/RB
suggest/VBP
that/IN
Justice/NNP
's/POS
prosecutions/NNS
of/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
,/,
Michael/NNP
Milken/NNP
and/CC
Princeton\/Newport/NNP
violated/VBD
notions/NNS
of/IN
fundamental/JJ
fairness/NN
./.
Justice/NNP
is/VBZ
attempting/VBG
to/TO
avoid/VB
a/DT
replay/NN
of/IN
these/DT
tactics/NNS
./.
This/DT
amounts/VBZ
to/TO
an/DT
extraordinary/JJ
repudiation/NN
of/IN
the/DT
tenure/NN
of/IN
New/NNP
York/NNP
mayoral/JJ
candidate/NN
and/CC
former/JJ
U.S./NNP
Attorney/NNP
Rudolph/NNP
Giuliani/NNP
,/,
who/WP
was/VBD
more/RBR
inclined/JJ
to/TO
gathering/VBG
scalps/NNS
than/IN
understanding/VBG
markets/NNS
./.
The/DT
new/JJ
guidelines/NNS
limit/VBP
the/DT
pretrial/JJ
forfeitures/NNS
of/IN
assets/NNS
of/IN
RICOed/JJ
defendants/NNS
and/CC
their/PRP$
investors/NNS
,/,
clients/NNS
,/,
bankers/NNS
and/CC
others/NNS
./.
This/DT
follows/VBZ
earlier/JJR
new/JJ
guidelines/NNS
from/IN
the/DT
Tax/NNP
Division/NNP
prohibiting/VBG
Princeton\/Newport-like/JJ
tax/NN
cases/NNS
from/IN
masquerading/VBG
as/IN
RICO/NNP
cases/NNS
./.
The/DT
forfeiture/NN
memo/NN
cited/VBD
``/``
considerable/JJ
criticism/NN
in/IN
the/DT
press/NN
,/,
because/IN
of/IN
a/DT
perception/NN
that/IN
pre-trial/JJ
freezing/NN
of/IN
assets/NNS
is/VBZ
tantamount/JJ
to/TO
a/DT
seizure/NN
of/IN
property/NN
without/IN
due/JJ
process/NN
./.
''/''
It/PRP
told/VBD
prosecutors/NNS
not/RB
to/TO
seek/VB
forfeitures/NNS
if/IN
there/EX
are/VBP
``/``
less/RBR
intrusive/JJ
''/''
alternatives/NNS
,/,
such/JJ
as/IN
bonds/NNS
,/,
and/CC
in/IN
any/DT
case/NN
not/RB
to/TO
seek/VB
forfeitures/NNS
``/``
disproportionate/JJ
to/TO
the/DT
defendant/NN
's/POS
crime/NN
./.
''/''
These/DT
changes/NNS
come/VBP
a/DT
tad/NN
late/RB
for/IN
Princeton\/Newport/NNP
,/,
the/DT
first/JJ
RICOed/JJ
securities/NNS
firm/NN
./.
It/PRP
was/VBD
forced/VBN
into/IN
liquidation/NN
before/IN
trial/NN
when/WRB
investors/NNS
yanked/VBD
their/PRP$
funds/NNS
after/IN
the/DT
government/NN
demanded/VBD
a/DT
huge/JJ
pre-trial/JJ
asset/NN
forfeiture/NN
./.
Princeton\/Newport/NNP
investors/NNS
,/,
including/VBG
McKinsey/NNP
&/CC
Co./NNP
and/CC
the/DT
Harvard/NNP
endowment/NN
,/,
made/VBD
the/DT
rational/JJ
decision/NN
to/TO
withdraw/VB
their/PRP$
money/NN
;/:
for/IN
the/DT
firm/NN
,/,
the/DT
liquidation/NN
was/VBD
sentence/NN
first/RB
,/,
verdict/NN
later/RB
./.
Prosecutors/NNS
wanted/VBD
$/$
23.8/CD
million/CD
in/IN
forfeiture/NN
for/IN
alleged/JJ
tax/NN
fraud/NN
of/IN
some/DT
$/$
400,000/CD
./.
The/DT
experience/NN
of/IN
Princeton\/Newport/NNP
and/CC
initiation/NN
of/IN
other/JJ
RICO-forfeiture/JJ
cases/NNS
against/IN
legitimate/JJ
businesses/NNS
taught/VBD
Drexel/NNP
that/IN
a/DT
RICOed/JJ
investment/NN
bank/NN
would/MD
be/VB
an/DT
ex-investment/JJ
bank/NN
./.
Drexel/NNP
therefore/RB
agreed/VBD
instead/RB
to/TO
an/DT
arrangement/NN
allowing/VBG
it/PRP
to/TO
plea/VB
to/TO
charges/NNS
``/``
which/WDT
the/DT
company/NN
is/VBZ
not/RB
in/IN
a/DT
position/NN
to/TO
dispute/VB
''/''
because/IN
of/IN
RICO/NNP
./.
Part/NN
of/IN
Drexel/NNP
's/POS
plea/NN
was/VBD
to/TO
cut/VB
Mr./NNP
Milken/NNP
loose/JJ
./.
So/RB
after/IN
all/PDT
the/DT
prosecutorial/JJ
hoopla/NN
no/DT
one/NN
has/VBZ
established/VBN
what/WP
,/,
if/IN
anything/NN
,/,
Drexel/NNP
did/VBD
wrong/RB
./.
So/RB
two/CD
cheers/NNS
for/IN
the/DT
new/JJ
rules/NNS
./.
Justice/NN
has/VBZ
finally/RB
recognized/VBN
its/PRP$
employees/NNS
'/POS
abuses/NNS
,/,
thanks/NNS
largely/RB
to/TO
the/DT
demands/NNS
for/IN
reform/NN
by/IN
former/JJ
U.S./NNP
attorney/NN
in/IN
Washington/NNP
Joseph/NNP
diGenova/NNP
,/,
who/WP
wants/VBZ
to/TO
salvage/VB
RICO/NNP
for/IN
real/JJ
criminals/NNS
./.
But/CC
prosecutorial/JJ
guidelines/NNS
are/VBP
effective/JJ
only/RB
if/IN
someone/NN
at/IN
Justice/NNP
is/VBZ
willing/JJ
and/CC
able/JJ
to/TO
supervise/VB
hyperactive/JJ
prosecutors/NNS
./.
Judge/NNP
Sentelle/NNP
,/,
of/IN
the/DT
appeals/NNS
court/NN
in/IN
Washington/NNP
,/,
made/VBD
this/DT
point/NN
at/IN
a/DT
Cato/NNP
Institute/NNP
conference/NN
last/JJ
week/NN
in/IN
a/DT
remarkable/JJ
speech/NN
titled/VBN
,/,
``/``
RICO/NNP
:/:
The/DT
Monster/NN
That/WDT
Ate/VBD
Jurisprudence/NN
./.
''/''
He/PRP
said/VBD
ours/PRP
is/VBZ
supposed/VBN
to/TO
be/VB
``/``
a/DT
government/NN
of/IN
laws/NNS
not/RB
of/IN
men/NNS
,/,
''/''
and/CC
yet/RB
RICO/NNP
defenders/NNS
``/``
tell/VBP
us/PRP
that/IN
we/PRP
should/MD
rely/VB
on/IN
prosecutorial/JJ
discretion/NN
to/TO
protect/VB
against/IN
overbreadth/NN
of/IN
RICO/NNP
./.
''/''
No/DT
prosecutorial/JJ
guidelines/NNS
,/,
observed/JJ
or/CC
unobserved/JJ
,/,
limit/VBP
civil/JJ
RICO/NNP
cases/NNS
by/IN
plaintiffs/NNS
for/IN
damages/NNS
./.
What/WP
now/RB
for/IN
Princeton\/Newport/NNP
officials/NNS
,/,
Drexel/NNP
and/CC
Mr./NNP
Milken/NNP
?/.
Justice/NNP
should/MD
review/VB
these/DT
cases/NNS
to/TO
see/VB
what/WP
other/JJ
prosecutorial/JJ
abuses/NNS
may/MD
have/VB
occurred/VBN
./.
We/PRP
suspect/VBP
that/IN
Justice/NNP
will/MD
some/DT
day/NN
agree/VB
that/IN
only/RB
the/DT
complete/JJ
repeal/NN
of/IN
RICO/NNP
can/MD
guarantee/VB
an/DT
end/NN
to/TO
injustices/NNS
in/IN
its/PRP$
name/NN
./.
``/``
The/DT
Famous/NNP
Teddy/NNP
Z/NNP
,/,
''/''
which/WDT
CBS/NNP
Inc./NNP
had/VBD
hoped/VBN
would/MD
emerge/VB
as/IN
one/CD
of/IN
the/DT
few/JJ
bright/JJ
spots/NNS
in/IN
its/PRP$
otherwise/RB
lackluster/JJ
prime-time/NN
schedule/NN
,/,
is/VBZ
n't/RB
turning/VBG
out/RP
to/TO
be/VB
the/DT
hit/NN
the/DT
network/NN
envisaged/VBD
./.
Although/IN
the/DT
half-hour/JJ
situation/NN
comedy/NN
seen/VBN
Mondays/NNS
at/IN
9:30/CD
p.m/RB
./.
Eastern/JJ
and/CC
Pacific/JJ
time/NN
is/VBZ
n't/RB
a/DT
candidate/NN
for/IN
cancellation/NN
,/,
it/PRP
is/VBZ
slated/VBN
for/IN
fine-tuning/NN
and/CC
by/IN
next/JJ
week/NN
the/DT
network/NN
may/MD
announce/VB
``/``
Teddy/NNP
Z/NNP
''/''
is/VBZ
moving/VBG
to/TO
8:30/CD
p.m./RB
from/IN
its/PRP$
9:30/CD
time/NN
slot/NN
,/,
replacing/VBG
``/``
The/NNP
People/NNP
Next/NNP
Door/NNP
,/,
''/''
which/WDT
became/VBD
the/DT
first/JJ
network/NN
show/NN
to/TO
be/VB
canceled/VBN
this/DT
season/NN
./.
``/``
Teddy/NNP
Z/NNP
,/,
''/''
which/WDT
centers/VBZ
on/IN
a/DT
mailroom/NN
clerk-turned/JJ
agent/NN
at/IN
a/DT
Hollywood/NNP
talent/NN
agency/NN
,/,
was/VBD
scheduled/VBN
in/IN
the/DT
coveted/JJ
9:30/CD
p.m./NN
slot/NN
to/TO
follow/VB
``/``
Murphy/NNP
Brown/NNP
,/,
''/''
a/DT
situation/NN
comedy/NN
about/IN
a/DT
television/NN
news/NN
magazine/NN
,/,
starring/VBG
Candice/NNP
Bergen/NNP
./.
``/``
Teddy/NNP
Z/NNP
''/''
was/VBD
boosted/VBN
by/IN
favorable/JJ
reviews/NNS
and/CC
a/DT
network-wide/JJ
promotional/JJ
tie-in/JJ
contest/NN
with/IN
K/NNP
mart/NNP
Corp/NNP
./.
It/PRP
was/VBD
promoted/VBN
on/IN
cable/NN
services/NNS
,/,
including/VBG
MTV/NNP
,/,
Nick/NNP
at/IN
Night/NNP
and/CC
VH-1/NNP
,/,
and/CC
premiered/VBD
as/IN
the/DT
No./NN
22-rated/JJ
show/NN
for/IN
the/DT
week/NN
./.
But/CC
five/CD
weeks/NNS
after/IN
the/DT
premiere/NN
,/,
the/DT
series/NN
has/VBZ
floundered/VBN
./.
In/IN
figures/NNS
released/VBN
yesterday/NN
by/IN
A.C./NNP
Nielsen/NNP
Co/NNP
./.
``/``
Teddy/NNP
Z/NNP
,/,
''/''
produced/VBN
by/IN
the/DT
television/NN
unit/NN
of/IN
Columbia/NNP
Pictures/NNP
Entertainment/NNP
Inc./NNP
,/,
was/VBD
in/IN
37th/JJ
place/NN
./.
Worse/JJR
,/,
every/DT
week/NN
it/PRP
suffers/VBZ
audience/NN
drop-off/NN
from/IN
``/``
Murphy/NNP
Brown/NNP
''/''
and/CC
viewership/NN
on/IN
CBS/NNP
picks/VBZ
up/RP
again/RB
once/RB
``/``
Teddy/NNP
Z/NNP
''/''
is/VBZ
over/RB
and/CC
is/VBZ
followed/VBN
by/IN
``/``
Designing/NNP
Women/NNP
./.
''/''
``/``
There/EX
is/VBZ
strong/JJ
indication/NN
that/IN
`/``
Teddy/NNP
Z/NNP
'/''
is/VBZ
not/RB
compatible/JJ
with/IN
the/DT
shows/NNS
it/PRP
is/VBZ
surrounding/VBG
,/,
''/''
said/VBD
John/NNP
Sisk/NNP
,/,
senior/JJ
vice/NN
president/NN
at/IN
J./NNP
Walter/NNP
Thompson/NNP
Co./NNP
,/,
a/DT
unit/NN
of/IN
WPP/NNP
Group/NNP
PLC/NNP
./.
Last/JJ
week/NN
,/,
``/``
Murphy/NNP
Brown/NNP
''/''
was/VBD
viewed/VBN
by/IN
14.1/CD
%/NN
of/IN
the/DT
available/JJ
television/NN
households/NNS
,/,
while/IN
the/DT
number/NN
dropped/VBD
to/TO
12.6/CD
%/NN
for/IN
``/``
Teddy/NNP
Z/NNP
''/''
and/CC
rose/VBD
to/TO
14.2/CD
%/NN
for/IN
``/``
Designing/NNP
Women/NNP
./.
''/''
CBS/NNP
executives/NNS
said/VBD
the/DT
program/NN
is/VBZ
also/RB
slated/VBN
to/TO
undergo/VB
some/DT
plot/NN
changes/NNS
./.
Creator/NNP
Hugh/NNP
Wilson/NNP
,/,
for/IN
example/NN
,/,
included/VBD
the/DT
lead/JJ
character/NN
's/POS
Greek/JJ
family/NN
in/IN
the/DT
cast/NN
,/,
``/``
but/CC
that/DT
is/VBZ
not/RB
the/DT
right/JJ
focus/NN
anymore/RB
,/,
''/''
said/VBD
one/CD
CBS/NNP
executive/NN
./.
Instead/RB
,/,
CBS/NNP
hopes/VBZ
the/DT
show/NN
will/MD
increasingly/RB
highlight/VB
the/DT
talent/NN
agency/NN
and/CC
the/DT
business/NN
of/IN
being/VBG
an/DT
agent/NN
./.
``/``
We/PRP
're/VBP
making/VBG
adjustments/NNS
on/IN
the/DT
show/NN
,/,
yes/UH
,/,
but/CC
nothing/NN
radical/JJ
,/,
''/''
said/VBD
Craig/NNP
Nelson/NNP
,/,
the/DT
story/NN
consultant/NN
on/IN
``/``
Teddy/NNP
Z/NNP
./.
''/''
``/``
But/CC
we/PRP
hope/VBP
to/TO
keep/VB
a/DT
balance/NN
between/IN
the/DT
office/NN
and/CC
the/DT
family/NN
./.
''/''
The/DT
opening/NN
credits/NNS
are/VBP
being/VBG
redone/NN
,/,
Mr./NNP
Nelson/NNP
said/VBD
,/,
``/``
to/TO
make/VB
Teddy/NNP
's/POS
situation/NN
clear/JJ
to/TO
viewers/NNS
who/WP
have/VBP
not/RB
been/VBN
with/IN
us/PRP
since/IN
the/DT
beginning/NN
./.
Those/DT
viewers/NNS
find/VBP
the/DT
show/NN
confusing/JJ
./.
''/''
The/DT
stock/NN
market/NN
's/POS
woes/NNS
spooked/VBD
currency/NN
traders/NNS
but/CC
prompted/VBD
a/DT
quiet/JJ
little/JJ
party/NN
among/IN
bond/NN
investors/NNS
./.
Prices/NNS
of/IN
long-term/JJ
Treasury/NNP
bonds/NNS
moved/VBD
inversely/RB
to/TO
the/DT
stock/NN
market/NN
as/IN
investors/NNS
sought/VBD
safety/NN
amid/IN
growing/VBG
evidence/NN
the/DT
economy/NN
is/VBZ
weakening/VBG
./.
But/CC
the/DT
shaky/JJ
economic/JJ
outlook/NN
and/CC
the/DT
volatile/JJ
stock/NN
market/NN
forced/VBD
the/DT
dollar/NN
lower/RBR
against/IN
major/JJ
currencies/NNS
./.
The/DT
bond/NN
market/NN
got/VBD
an/DT
early/JJ
boost/NN
from/IN
the/DT
opening-hour/JJ
sell-off/NN
in/IN
stocks/NNS
./.
That/DT
rout/NN
was/VBD
triggered/VBN
by/IN
UAL/NNP
Corp./NNP
's/POS
announcement/NN
late/RB
Monday/NNP
that/IN
the/DT
proposed/JJ
management-labor/JJ
buy-out/NN
had/VBD
collapsed/VBN
./.
The/DT
80-point/JJ
decline/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
during/IN
the/DT
morning/NN
trading/NN
session/NN
touched/VBD
off/RP
a/DT
flight/NN
to/TO
safety/NN
that/WDT
saw/VBD
investors/NNS
shifting/VBG
assets/NNS
from/IN
stocks/NNS
to/TO
Treasury/NNP
bonds/NNS
./.
At/IN
its/PRP$
strongest/JJS
,/,
the/DT
Treasury/NNP
's/POS
benchmark/JJ
30-year/JJ
bond/NN
rose/VBD
more/JJR
than/IN
a/DT
point/NN
,/,
or/CC
more/JJR
than/IN
$/$
10/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
./.
As/IN
the/DT
stock/NN
market/NN
recovered/VBD
some/DT
of/IN
its/PRP$
losses/NNS
later/RB
in/IN
the/DT
day/NN
,/,
bond/NN
prices/NNS
retreated/VBD
./.
But/CC
analysts/NNS
said/VBD
the/DT
combination/NN
of/IN
a/DT
second/JJ
consecutive/JJ
decline/NN
in/IN
monthly/JJ
durable-goods/NNS
orders/NNS
and/CC
lackluster/JJ
mid-October/NNP
auto/NN
sales/NNS
helped/VBD
prop/VB
up/RP
the/DT
Treasury/NNP
market/NN
./.
A/DT
slowing/VBG
economy/NN
and/CC
the/DT
implication/NN
of/IN
lower/JJR
inflation/NN
and/CC
interest/NN
rates/NNS
tend/VBP
to/TO
bolster/VB
bond/NN
prices/NNS
./.
On/IN
the/DT
surface/NN
,/,
the/DT
decline/NN
in/IN
September/NNP
durable/JJ
goods/NNS
--/:
only/RB
0.1/CD
%/NN
--/:
did/VBD
n't/RB
appear/VB
very/RB
weak/JJ
./.
But/CC
orders/NNS
for/IN
non-defense/JJ
capital/NN
goods/NNS
,/,
a/DT
precursor/NN
of/IN
future/JJ
plant/NN
and/CC
equipment/NN
spending/NN
,/,
were/VBD
off/RB
5.6/CD
%/NN
after/IN
falling/VBG
10.3/CD
%/NN
in/IN
August/NNP
./.
Auto/NN
makers/NNS
reported/VBD
that/IN
mid-October/NNP
sales/NNS
were/VBD
running/VBG
at/IN
an/DT
annual/JJ
rate/NN
of/IN
about/RB
5.8/CD
million/CD
units/NNS
,/,
far/RB
less/JJR
than/IN
the/DT
6.6/CD
million/CD
units/NNS
analysts/NNS
had/VBD
expected/VBN
./.
Taken/VBN
together/RB
,/,
the/DT
auto-sales/NNS
and/CC
durable-goods/NNS
reports/NNS
confirmed/VBD
perceptions/NNS
that/IN
the/DT
economy/NN
is/VBZ
bogging/VBG
down/RP
./.
Although/IN
analysts/NNS
do/VBP
n't/RB
expect/VB
the/DT
Federal/NNP
Reserve/NNP
to/TO
ease/VB
credit/NN
policy/NN
soon/RB
,/,
reports/NNS
like/IN
those/DT
yesterday/NN
help/VBP
build/VB
the/DT
case/NN
for/IN
lower/JJR
rates/NNS
./.
Now/RB
bond/NN
investors/NNS
are/VBP
looking/VBG
toward/IN
next/JJ
week/NN
's/POS
report/NN
from/IN
national/JJ
purchasing/NN
managers/NNS
and/CC
the/DT
government/NN
's/POS
October/NNP
employment/NN
report/NN
as/IN
potentially/RB
prompting/VBG
the/DT
Fed/NNP
to/TO
lower/VB
rates/NNS
./.
The/DT
stock/NN
market/NN
's/POS
precipitous/JJ
drop/NN
frightened/VBD
foreign/JJ
investors/NNS
,/,
who/WP
quickly/RB
bid/VBD
the/DT
dollar/NN
lower/RBR
./.
But/CC
as/IN
stock/NN
prices/NNS
recovered/VBD
some/DT
of/IN
the/DT
early/JJ
losses/NNS
,/,
so/RB
did/VBD
the/DT
U.S./NNP
currency/NN
./.
Although/IN
dealers/NNS
said/VBD
investors/NNS
are/VBP
becoming/VBG
more/RBR
bearish/JJ
toward/IN
the/DT
dollar/NN
in/IN
the/DT
wake/NN
of/IN
the/DT
stock/NN
market/NN
's/POS
recent/JJ
troubles/NNS
and/CC
as/IN
the/DT
U.S./NNP
economy/NN
weakens/VBZ
,/,
the/DT
dollar/NN
ended/VBD
down/RB
only/RB
modestly/RB
./.
In/IN
major/JJ
market/NN
activity/NN
:/:
Bond/NN
prices/NNS
rose/VBD
./.
The/DT
Treasury/NNP
's/POS
benchmark/JJ
30-year/JJ
bond/NN
gained/VBD
nearly/RB
half/PDT
a/DT
point/NN
,/,
or/CC
about/RB
$/$
5/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
./.
The/DT
yield/NN
on/IN
the/DT
issue/NN
slipped/VBD
to/TO
7.89/CD
%/NN
./.
The/DT
dollar/NN
retreated/VBD
./.
In/IN
late/JJ
New/NNP
York/NNP
trading/NN
the/DT
currency/NN
was/VBD
quoted/VBN
at/IN
1.8355/CD
marks/NNS
and/CC
141.45/CD
yen/NN
,/,
compared/VBN
with/IN
1.8470/CD
marks/NNS
and/CC
141.90/CD
yen/NN
Monday/NNP
./.
``/``
Lifestyles/NNP
of/IN
the/DT
Rich/NNP
and/CC
Famous/NNP
''/''
may/MD
be/VB
visiting/VBG
some/DT
new/JJ
venues/NNS
in/IN
the/DT
near/JJ
future/NN
./.
Judge/NNP
Robert/NNP
``/``
Maximum/NNP
Bob/NNP
''/''
)/)
Potter/NNP
sentenced/VBN
Jim/NNP
Bakker/NNP
to/TO
45/CD
years/NNS
in/IN
the/DT
big/JJ
house/NN
yesterday/NN
,/,
while/IN
a/DT
Beverly/NNP
Hills/NNP
judge/NN
tucked/VBD
away/RP
Zsa/NNP
Zsa/NNP
Gabor/NNP
for/IN
three/CD
days/NNS
,/,
plus/CC
120/CD
hours/NNS
of/IN
work/NN
with/IN
homeless/JJ
women/NNS
./.
Miss/NNP
Gabor/NNP
recanted/VBD
her/PRP$
earlier-expressed/JJ
fear/NN
of/IN
jailhouse/NN
lesbians/NNS
./.
Mr./NNP
Bakker/NNP
said/VBD
he/PRP
was/VBD
guilty/JJ
of/IN
sin/NN
but/CC
not/RB
fraud/NN
./.
We/PRP
can/MD
only/RB
wonder/VB
who/WP
will/MD
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the/DT
next/JJ
lost/JJ
soul/NN
chosen/VBN
to/TO
be/VB
America/NNP
's/POS
Celebrity/NNP
Convict/NNP
./.
Boeing/NNP
Co./NNP
said/VBD
Trans/NNP
European/NNP
Airways/NNP
ordered/VBD
a/DT
dozen/NN
737/CD
jetliners/NNS
valued/VBN
at/IN
a/DT
total/NN
of/IN
about/RB
$/$
450/CD
million/CD
./.
The/DT
300/CD
and/CC
400/CD
series/NN
aircraft/NN
will/MD
be/VB
powered/VBN
by/IN
engines/NNS
jointly/RB
produced/VBN
by/IN
General/NNP
Electric/NNP
Co./NNP
and/CC
Snecma/NNP
of/IN
France/NNP
./.
Currently/NNP
,/,
Boeing/NNP
has/VBZ
a/DT
backlog/NN
of/IN
about/RB
$/$
80/CD
billion/CD
,/,
but/CC
production/NN
has/VBZ
been/VBN
slowed/VBN
by/IN
a/DT
strike/NN
of/IN
55,000/CD
machinists/NNS
,/,
which/WDT
entered/VBD
its/PRP$
22nd/JJ
day/NN
today/NN
./.
Last/JJ
week/NN
,/,
a/DT
mediator/NN
failed/VBD
to/TO
rekindle/VB
talks/NNS
between/IN
the/DT
company/NN
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the/DT
strikers/NNS
,/,
who/WP
have/VBP
rejected/VBN
a/DT
pay/NN
raise/NN
offer/NN
of/IN
10/CD
%/NN
over/IN
three/CD
years/NNS
./.
When/WRB
the/DT
good/JJ
fairy/NN
assigned/VBN
to/TO
Slovakia/NNP
hovered/VBD
over/IN
the/DT
cradle/NN
of/IN
Edita/NNP
Gruberova/NNP
many/JJ
years/NNS
ago/RB
in/IN
Bratislava/NNP
,/,
she/PRP
sprinkled/VBD
her/PRP
with/IN
high/JJ
E/NN
flats/NNS
,/,
sparkling/JJ
Ds/NNS
,/,
clean/JJ
trills/NNS
,/,
and/CC
coloratura/NN
ornaments/NNS
silvery/JJ
as/IN
magic/JJ
dust/NN
./.
Maybe/RB
she/PRP
could/MD
drop/VB
by/RP
at/IN
the/DT
Metropolitan/NNP
Opera/NNP
and/CC
bring/VB
along/RP
what/WP
she/PRP
forgot/VBD
,/,
a/DT
little/JJ
charm/NN
,/,
a/DT
few/JJ
smidgins/NNS
of/IN
thespian/JJ
skills/NNS
and/CC
a/DT
nice/JJ
wig/NN
./.
Cast/VBN
as/IN
Violetta/NNP
Valery/NNP
in/IN
a/DT
new/JJ
production/NN
of/IN
Verdi/NNP
's/POS
``/``
La/NNP
Traviata/NNP
,/,
''/''
Ms./NNP
Gruberova/NNP
last/JJ
week/NN
did/VBD
many/JJ
things/NNS
nicely/RB
and/CC
others/NNS
not/RB
so/RB
well/RB
./.
It/PRP
is/VBZ
n't/RB
every/DT
day/NN
that/IN
we/PRP
hear/VBP
a/DT
Violetta/NNP
who/WP
can/MD
sing/VB
the/DT
first/JJ
act/NN
's/POS
high-flying/JJ
music/NN
with/IN
all/PDT
the/DT
little/JJ
notes/NNS
perfectly/RB
pitched/VBN
and/CC
neatly/RB
stitched/VBN
together/RB
./.
Never/RB
once/RB
did/VBD
she/PRP
gasp/VB
for/IN
air/NN
or/CC
mop/VB
her/PRP$
brow/NN
./.
She/PRP
was/VBD
as/RB
cool/JJ
as/IN
a/DT
cucumber/NN
./.
But/CC
as/IN
you/PRP
may/MD
know/VB
,/,
things/NNS
are/VBP
not/RB
going/VBG
well/RB
for/IN
Violetta/NNP
./.
There/EX
are/VBP
times/NNS
when/WRB
she/PRP
must/MD
show/VB
a/DT
little/JJ
emotion/NN
./.
She/PRP
has/VBZ
TB/NN
,/,
after/IN
all/DT
,/,
and/CC
a/DT
weak-kneed/JJ
lover/NN
;/:
and/CC
though/IN
a/DT
successful/JJ
courtesan/NN
,/,
she/PRP
is/VBZ
just/RB
about/RB
overdrawn/JJ
at/IN
the/DT
bank/NN
./.
Worse/JJR
,/,
her/PRP$
walls/NNS
move/VBP
all/PDT
the/DT
time/NN
--/:
at/IN
least/JJS
in/IN
this/DT
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./.
Just/RB
when/WRB
Ms./NNP
Gruberova/NNP
sat/VBD
down/RP
away/RB
from/IN
her/PRP$
guests/NNS
to/TO
cough/VB
in/IN
private/JJ
,/,
her/PRP$
salon/NN
began/VBD
sliding/VBG
around/IN
the/DT
stage/NN
;/:
her/PRP$
country/NN
hideaway/NN
also/RB
has/VBZ
a/DT
very/RB
active/JJ
set/NN
of/IN
drapes/NNS
./.
Hold/VB
on/IN
to/TO
those/DT
funny/JJ
braids/NNS
!/.
you/PRP
wanted/VBD
to/TO
caution/VB
her/PRP
as/IN
the/DT
sets/NNS
started/VBD
to/TO
roll/VB
around/RB
once/RB
more/JJR
./.
This/DT
is/VBZ
the/DT
most/RBS
moving/JJ
``/``
Traviata/NNP
''/''
I/PRP
've/VBP
ever/RB
seen/VBN
./.
Normally/NNP
,/,
Violetta/NNP
can/MD
go/VB
about/IN
her/PRP$
business/NN
without/IN
wondering/VBG
whether/IN
she/PRP
is/VBZ
moving/VBG
as/RB
gracefully/RB
as/IN
the/DT
scenery/NN
./.
But/CC
this/DT
is/VBZ
a/DT
production/NN
designed/VBN
and/CC
directed/VBN
by/IN
Franco/NNP
Zeffirelli/NNP
and/CC
paid/VBN
for/IN
by/IN
Sybil/NNP
Harrington/NNP
,/,
who/WP
has/VBZ
no/DT
need/NN
to/TO
count/VB
her/PRP$
pennies/NNS
,/,
unlike/IN
Violetta/NNP
,/,
down/RB
to/TO
20/CD
louis/NNS
at/IN
the/DT
opera/NN
's/POS
end/NN
./.
Seeing/VBG
all/PDT
those/DT
millions/NNS
in/IN
action/NN
,/,
I/PRP
was/VBD
just/RB
so/RB
relieved/JJ
that/IN
Ms./NNP
Gruberova/NNP
,/,
gawky/JJ
thing/NN
that/IN
she/PRP
is/VBZ
,/,
did/VBD
n't/RB
accidentally/RB
smother/VB
herself/PRP
in/IN
a/DT
drape/NN
./.
Large/JJ
and/CC
lavish/JJ
,/,
``/``
Traviata/NNP
''/''
is/VBZ
another/DT
addition/NN
to/TO
the/DT
Met/NNP
's/POS
growing/VBG
stock/NN
of/IN
cast-proof/JJ
productions/NNS
mostly/RB
by/IN
Mr./NNP
Zeffirelli/NNP
./.
They/PRP
have/VBP
a/DT
life/NN
of/IN
their/PRP$
own/JJ
and/CC
can/MD
be/VB
counted/VBN
on/IN
to/TO
look/VB
good/JJ
and/CC
perform/VB
whenever/WRB
a/DT
cast/NN
is/VBZ
n't/RB
up/IN
to/TO
either/DT
./.
If/IN
a/DT
strike/NN
ever/RB
hits/VBZ
the/DT
Met/NNP
,/,
the/DT
company/NN
can/MD
still/RB
sell/VB
tickets/NNS
to/TO
his/PRP$
``/``
Boheme/NNP
''/''
and/CC
``/``
Turandot/NNP
''/''
and/CC
boom/VB
out/IN
recordings/NNS
another/DT
era/NN
Last/JJ
week/NN
's/POS
discerning/JJ
audience/NN
gave/VBD
a/DT
bigger/JJR
hand/NN
to/TO
a/DT
greenhouse/NN
than/IN
to/TO
the/DT
tenor/NN
Neil/NNP
Shicoff/NNP
,/,
who/WP
sang/VBD
an/DT
aria/NN
inside/IN
it/PRP
./.
Inexplicably/RB
costumed/VBN
as/IN
a/DT
rabbinical/JJ
student/NN
,/,
tottering/VBG
around/RB
on/IN
lifts/NNS
,/,
Mr./NNP
Shicoff/NNP
hardly/RB
seemed/VBD
the/DT
fellow/NN
to/TO
catch/VB
a/DT
fancy/JJ
cocotte/NN
's/POS
eye/NN
./.
I/PRP
wish/VBP
he/PRP
could/MD
wear/VB
lifts/NNS
in/IN
his/PRP$
voice/NN
./.
Not/RB
nearly/RB
in/IN
his/PRP$
best/JJS
form/NN
,/,
the/DT
tenor/NN
made/VBD
dullish/JJ
sounds/NNS
along/IN
with/IN
his/PRP$
usual/JJ
clumsy/JJ
hand/NN
gestures/NNS
./.
Maybe/RB
Mr./NNP
Z./NNP
was/VBD
too/RB
busy/JJ
taming/VBG
his/PRP$
set/NN
to/TO
work/VB
with/IN
his/PRP$
naturally/RB
ungainly/JJ
Alfredo/NNP
./.
Or/CC
is/VBZ
it/PRP
that/IN
Mr./NNP
Z./NNP
is/VBZ
getting/VBG
a/DT
little/RB
tired/JJ
of/IN
``/``
Traviata/NNP
''/''
?/.
This/DT
is/VBZ
the/DT
same/JJ
production/NN
already/RB
seen/VBN
in/IN
Paris/NNP
and/CC
Florence/NNP
,/,
and/CC
its/PRP$
scenic/JJ
ideas/NNS
echo/VBP
the/DT
movie/NN
he/PRP
made/VBD
with/IN
Placido/NNP
Domingo/NNP
and/CC
Teresa/NNP
Stratas/NNP
./.
Decades/NNS
earlier/RBR
,/,
Maria/NNP
Callas/NNP
sang/VBD
the/DT
Dallas/NNP
staging/NN
that/WDT
introduced/VBD
the/DT
flashback/NN
idea/NN
./.
In/IN
an/DT
invention/NN
that/WDT
drives/VBZ
Verdi/NNP
purists/NNS
bananas/NNS
,/,
Violetta/NNP
lies/VBZ
dying/VBG
in/IN
bed/NN
during/IN
the/DT
prelude/NN
,/,
rising/VBG
deliriously/RB
when/WRB
then/RB
she/PRP
remembers/VBZ
the/DT
great/JJ
parties/NNS
she/PRP
used/VBD
to/TO
throw/VB
./.
The/DT
entire/JJ
opera/NN
is/VBZ
her/PRP$
dream/NN
./.
Given/VBN
the/DT
prelude/NN
's/POS
thematic/JJ
connections/NNS
with/IN
the/DT
music/NN
preceding/VBG
the/DT
last/JJ
act/NN
,/,
the/DT
idea/NN
is/VBZ
more/RBR
worn/JJ
than/IN
bad/JJ
,/,
though/IN
as/IN
luck/NN
would/MD
have/VB
it/PRP
,/,
for/IN
a/DT
change/NN
there/EX
actually/RB
was/VBD
a/DT
conductor/NN
in/IN
the/DT
pit/NN
whom/WP
we/PRP
wanted/VBD
to/TO
hear/VB
,/,
Carlos/NNP
Kleiber/NNP
,/,
trying/VBG
to/TO
make/VB
memorable/JJ
music/NN
while/IN
we/PRP
all/DT
waited/VBD
for/IN
the/DT
bed/NN
lump/NN
to/TO
stir/VB
into/IN
song/NN
./.
Once/RB
she/PRP
did/VBD
so/RB
,/,
the/DT
big-souled/JJ
German/JJ
maestro/NN
with/IN
the/DT
shaky/JJ
nerves/NNS
who/WP
so/RB
often/RB
cancels/VBZ
offered/VBD
a/DT
limpid/JJ
,/,
flowing/JJ
performance/NN
that/IN
in/IN
its/PRP$
unswagged/JJ
and/CC
unswaggering/JJ
approach/NN
was/VBD
totally/RB
at/IN
odds/NNS
with/IN
the/DT
staging/NN
./.
Of/IN
heart-pounding/JJ
moments/NNS
there/EX
were/VBD
nearly/RB
none/NN
,/,
and/CC
whether/IN
this/DT
has/VBZ
to/TO
do/VB
with/IN
Mr./NNP
Kleiber/NNP
or/CC
the/DT
wooden/JJ
cast/NN
is/VBZ
hard/JJ
to/TO
say/VB
./.
In/IN
any/DT
event/NN
,/,
Ms./NNP
Gruberova/NNP
barely/RB
ventilated/VBD
Violetta/NNP
's/POS
anguish/NN
in/IN
her/PRP$
long/JJ
meeting/NN
with/IN
Wolfgang/NNP
Brendel/NNP
,/,
who/WP
as/IN
Germont/NNP
seemed/VBD
fairly/RB
desperate/JJ
trying/VBG
to/TO
inject/VB
an/DT
Italianate/JJ
lilt/NN
into/IN
his/PRP$
heavy/JJ
,/,
teutonic/JJ
baritone/NN
./.
``/``
Di/NNP
Provenza/NNP
''/''
was/VBD
n't/RB
much/JJ
of/IN
an/DT
advertisement/NN
for/IN
sunny/JJ
,/,
southern/JJ
France/NNP
./.
Perhaps/RB
Mr./NNP
Kleiber/NNP
could/MD
let/VB
him/PRP
substitute/VB
one/CD
of/IN
the/DT
songs/NNS
about/IN
dead/JJ
children/NNS
and/CC
dark/JJ
nights/NNS
from/IN
Mahler/NNP
's/POS
``/``
Kindertotenlieder/FW
./.
''/''
Speaking/VBG
of/IN
dark/JJ
nights/NNS
,/,
the/DT
Met/NNP
's/POS
next-door/JJ
neighbor/NN
,/,
the/DT
New/NNP
York/NNP
City/NNP
Opera/NNP
,/,
has/VBZ
canceled/VBN
its/PRP$
season/NN
after/IN
failing/VBG
to/TO
reach/VB
a/DT
settlement/NN
with/IN
its/PRP$
musicians/NNS
,/,
who/WP
wanted/VBD
pay/NN
parity/NN
with/IN
the/DT
the/DT
Chicago/NNP
Lyric/NNP
and/CC
San/NNP
Francisco/NNP
Opera/NNP
orchestras/NNS
./.
Well/RB
,/,
they/PRP
can/MD
now/RB
go/VB
and/CC
audition/VB
there/RB
./.
Good/JJ
luck/NN
./.
Common/JJ
sense/NN
suggests/VBZ
that/IN
people/NNS
who/WP
play/VBP
for/IN
a/DT
company/NN
that/IN
charges/NNS
about/RB
half/DT
what/WP
those/DT
houses/NNS
do/VBP
for/IN
a/DT
ticket/NN
are/VBP
not/RB
in/IN
the/DT
same/JJ
market/NN
./.
The/DT
cancellation/NN
bodes/VBZ
poorly/RB
for/IN
a/DT
company/NN
already/RB
beset/JJ
with/IN
an/DT
identity/NN
crisis/NN
exacerbated/VBN
by/IN
the/DT
retirement/NN
of/IN
general/JJ
director/NN
Beverly/NNP
Sills/NNP
and/CC
the/DT
amazing/JJ
appointment/NN
of/IN
Christopher/NNP
Keene/NNP
as/IN
her/PRP$
successor/NN
after/IN
his/PRP$
years/NNS
of/IN
feckless/JJ
toiling/NN
in/IN
the/DT
pit/NN
./.
As/IN
the/DT
Met/NNP
discovered/VBD
years/NNS
ago/RB
following/VBG
a/DT
belated/JJ
December/NNP
opening/NN
,/,
it/PRP
is/VBZ
nearly/RB
impossible/JJ
to/TO
recapture/VB
subscribers/NNS
once/IN
they/PRP
have/VBP
had/VBD
time/NN
to/TO
ponder/VB
their/PRP$
entertainment/NN
choices/NNS
./.
I/PRP
,/,
for/IN
instance/NN
,/,
was/VBD
perfectly/RB
happy/JJ
at/IN
Avery/NNP
Fisher/NNP
Hall/NNP
the/DT
other/JJ
day/NN
listening/VBG
to/TO
Helmuth/NNP
Rilling/NNP
conduct/VB
the/DT
Messa/FW
per/FW
Rossini/NNP
,/,
a/DT
strange/JJ
piece/NN
written/VBN
by/IN
13/CD
different/JJ
Italian/JJ
composers/NNS
to/TO
honor/VB
Rossini/NNP
after/IN
his/PRP$
death/NN
in/IN
1868/CD
./.
Each/DT
of/IN
them/PRP
contributed/VBD
a/DT
section/NN
at/IN
the/DT
behest/NN
of/IN
Verdi/NNP
,/,
who/WP
was/VBD
nearly/RB
driven/VBN
to/TO
his/PRP$
own/JJ
early/JJ
grave/NN
by/IN
the/DT
troublesome/JJ
arrangements/NNS
./.
For/IN
all/PDT
that/DT
,/,
the/DT
piece/NN
landed/VBD
unperformed/JJ
in/IN
a/DT
dusty/JJ
archive/NN
after/IN
Bologna/NNP
refused/VBD
to/TO
supply/VB
a/DT
chorus/NN
and/CC
orchestra/NN
./.
We/PRP
know/VBP
Verdi/NNP
's/POS
own/JJ
contribution/NN
was/VBD
mighty/RB
impressive/JJ
since/IN
the/DT
operatic/JJ
``/``
Libera/FW
me/FW
''/''
was/VBD
reworked/VBN
for/IN
the/DT
Manzoni/NNP
Requiem/NNP
,/,
of/IN
which/WDT
he/PRP
wrote/VBD
every/DT
note/NN
himself/PRP
having/VBG
learned/VBN
his/PRP$
lesson/NN
./.
The/DT
surprising/JJ
discovery/NN
of/IN
the/DT
evening/NN
at/IN
Fisher/NNP
was/VBD
the/DT
high/JJ
standard/NN
achieved/VBN
by/IN
some/DT
of/IN
his/PRP$
now-obscure/JJ
colleagues/NNS
,/,
notably/RB
Raimondo/NNP
Boucheron/NNP
./.
His/PRP$
melodious/JJ
``/``
Confutatis/FW
''/''
was/VBD
smoothly/RB
sung/VBN
by/IN
bass/NN
Brian/NNP
Matthews/NNP
./.
Also/RB
,/,
Teodulo/NNP
Mabellini/NNP
's/POS
``/``
Lux/FW
aeterna/FW
''/''
was/VBD
intriguingly/RB
scored/VBN
and/CC
splendidly/RB
put/VBD
across/RP
by/IN
Mr./NNP
Rilling/NNP
./.
He/PRP
brought/VBD
along/RP
his/PRP$
Stuttgart-based/JJ
Gaechinger/NNP
Kantorei/NNP
chorus/NN
,/,
and/CC
even/RB
better/RBR|JJR
,/,
the/DT
Czech/JJ
soprano/NN
Gabriela/NNP
Benackova/NNP
./.
She/PRP
was/VBD
in/IN
her/PRP
most/RBS
radiant/JJ
,/,
expressive/JJ
voice/NN
./.
Maybe/RB
she/PRP
could/MD
step/VB
across/IN
the/DT
plaza/NN
to/TO
the/DT
Met/NNP
--/:
where/WRB
she/PRP
has/VBZ
still/RB
to/TO
make/VB
her/PRP$
debut/NN
--/:
and/CC
help/VB
out/RP
her/PRP$
Czech/JJ
compatriot/NN
by/IN
singing/VBG
the/DT
slow/JJ
parts/NNS
of/IN
``/``
Traviata/NNP
./.
''/''
The/DT
Tokyo/NNP
International/NNP
Film/NNP
Festival/NNP
was/VBD
no/DT
match/NN
for/IN
the/DT
Cannes/NNP
Film/NNP
Festival/NNP
in/IN
terms/NNS
of/IN
prestige/NN
,/,
but/CC
it/PRP
made/VBD
its/PRP$
mark/NN
:/:
It/PRP
awarded/VBD
the/DT
largest/JJS
cash/NN
prize/NN
of/IN
any/DT
film/NN
festival/NN
to/TO
young/JJ
and/CC
first-time/JJ
film/NN
makers/NNS
./.
At/IN
this/DT
year/NN
's/POS
event/NN
,/,
the/DT
third/JJ
since/IN
the/DT
festival/NN
got/VBD
under/IN
way/NN
in/IN
1985/CD
,/,
Idrissa/NNP
Ouedraogo/NNP
of/IN
Burkina/NNP
Faso/NNP
won/VBD
the/DT
Sakura/NNP
Gold/NNP
prize/NN
of/IN
$/$
143,000/CD
for/IN
``/``
Yaaba/NNP
''/''
(/(
``/``
Old/NNP
Woman/NNP
''/''
)/)
./.
By/IN
comparison/NN
,/,
Cannes/NNP
now/RB
gives/VBZ
$/$
39,000/CD
to/TO
the/DT
winner/NN
of/IN
its/PRP$
young/JJ
director/NN
's/POS
award/NN
./.
Says/VBZ
director/NN
George/NNP
Miller/NNP
``/``
Mad/NNP
Max/NNP
''/''
)/)
:/:
``/``
I/PRP
think/VBP
the/DT
Tokyo/NNP
festival/NN
may/MD
become/VB
known/VBN
as/IN
a/DT
major/JJ
attraction/NN
for/IN
young/JJ
directors/NNS
because/IN
of/IN
the/DT
money/NN
as/RB
well/RB
as/IN
the/DT
recognition/NN
./.
''/''
There/EX
are/VBP
drawbacks/NNS
./.
Vincent/NNP
Tolentino/NNP
,/,
a/DT
correspondent/NN
for/IN
the/DT
French/JJ
magazine/NN
Telerama/NNP
,/,
says/VBZ
of/IN
the/DT
recently/RB
ended/VBN
Tokyo/NNP
festival/NN
:/:
``/``
No/DT
one/NN
makes/VBZ
deals/NNS
.../:
and/CC
most/JJS
of/IN
the/DT
films/NNS
have/VBP
been/VBN
seen/VBN
before/RB
at/IN
other/JJ
festivals/NNS
./.
''/''
Belgium/NNP
decided/VBD
that/IN
investors/NNS
who/WP
demand/VBP
the/DT
delivery/NN
of/IN
their/PRP$
securities/NNS
when/WRB
they/PRP
buy/VBP
shares/NNS
or/CC
domestic/JJ
bonds/NNS
will/MD
have/VB
to/TO
pay/VB
an/DT
additional/JJ
100/CD
Belgian/JJ
francs/NNS
$/$
2.60/CD
each/DT
transaction/NN
,/,
bringing/VBG
the/DT
total/JJ
fee/NN
to/TO
200/CD
francs/NNS
./.
While/IN
no/DT
figures/NNS
exist/VBP
,/,
it/PRP
is/VBZ
thought/VBN
that/IN
many/JJ
small/JJ
investors/NNS
in/IN
Belgium/NNP
store/VBP
securities/NNS
privately/RB
,/,
in/IN
some/DT
cases/NNS
to/TO
avoid/VB
paying/VBG
high/JJ
inheritance/NN
taxes/NNS
./.
The/DT
law/NN
could/MD
redound/VB
to/TO
the/DT
advantage/NN
of/IN
brokers/NNS
and/CC
banks/NNS
,/,
who/WP
incur/VBP
high/JJ
administrative/JJ
costs/NNS
to/TO
deliver/VB
securities/NNS
to/TO
investors/NNS
./.
Japan/NNP
is/VBZ
considering/VBG
giving/VBG
aid/NN
to/TO
Hungary/NNP
and/CC
Poland/NNP
to/TO
support/VB
their/PRP$
recent/JJ
political/JJ
reforms/NNS
,/,
a/DT
spokesman/NN
for/IN
the/DT
Foreign/NNP
Ministry/NNP
said/VBD
./.
``/``
This/DT
is/VBZ
the/DT
first/JJ
time/NN
,/,
if/IN
we/PRP
decide/VBP
to/TO
do/VB
so/RB
,/,
for/IN
Japan/NNP
to/TO
extend/VB
aid/NN
of/IN
this/DT
kind/NN
to/TO
Eastern/JJ
European/JJ
countries/NNS
,/,
''/''
the/DT
spokesman/NN
said/VBD
./.
He/PRP
said/VBD
Prime/NNP
Minister/NNP
Toshiki/NNP
Kaifu/NNP
also/RB
is/VBZ
studying/VBG
the/DT
possibility/NN
of/IN
a/DT
visit/NN
to/TO
the/DT
two/CD
Eastern/JJ
bloc/NN
nations/NNS
and/CC
to/TO
Western/NNP
Europe/NNP
next/IN
January/NNP
./.
Drugs/NNS
were/VBD
a/DT
major/JJ
issue/NN
in/IN
two/CD
days/NNS
of/IN
talks/NNS
between/IN
French/NNP
President/NNP
Francois/NNP
Mitterrand/NNP
and/CC
Spanish/NNP
Prime/NNP
Minister/NNP
Felipe/NNP
Gonzalez/NNP
./.
``/``
I/PRP
demand/VBP
the/DT
utmost/JJ
severity/NN
in/IN
the/DT
fight/NN
against/IN
drug/NN
traffickers/NNS
,/,
''/''
President/NNP
Mitterrand/NNP
said/VBD
after/IN
the/DT
meeting/NN
in/IN
Valladolid/NNP
,/,
Spain/NNP
./.
He/PRP
added/VBD
:/:
``/``
Banks/NNS
must/MD
open/VB
their/PRP$
books/NNS
./.
''/''
The/DT
leaders/NNS
'/POS
talks/NNS
coincided/VBD
with/IN
a/DT
meeting/NN
in/IN
Madrid/NNP
of/IN
anti-drug/JJ
experts/NNS
from/IN
the/DT
U.S./NNP
,/,
France/NNP
,/,
Italy/NNP
,/,
Spain/NNP
,/,
Peru/NNP
,/,
Bolivia/NNP
and/CC
Colombia/NNP
./.
That/DT
conference/NN
,/,
which/WDT
began/VBD
yesterday/NN
,/,
was/VBD
expected/VBN
to/TO
cover/VB
such/JJ
matters/NNS
as/IN
police/NN
training/NN
and/CC
extradition/NN
agreements/NNS
,/,
Spanish/JJ
officials/NNS
said/VBD
./.
Three/CD
Soviet/JJ
government/NN
officials/NNS
--/:
the/DT
ministers/NNS
of/IN
railroads/NNS
,/,
of/IN
foreign/JJ
economic/JJ
relations/NNS
and/CC
of/IN
heavy-machine/JJ
building/NN
--/:
will/MD
visit/VB
Tehran/NNP
next/JJ
month/NN
for/IN
talks/NNS
,/,
Iran/NNP
's/POS
official/JJ
news/NN
agency/NN
reported/VBD
./.
Under/IN
an/DT
agreement/NN
signed/VBN
last/JJ
June/NNP
,/,
the/DT
Soviets/NNPS
will/MD
help/VB
Iran/NNP
in/IN
oil/NN
exploration/NN
and/CC
other/JJ
areas/NNS
in/IN
return/NN
for/IN
exports/NNS
of/IN
Iranian/JJ
natural/JJ
gas/NN
./.
And/CC
in/IN
Paris/NNP
,/,
Mahmoud/NNP
Vaezi/NNP
,/,
Iran/NNP
's/POS
vice/NN
minister/NN
of/IN
foreign/JJ
affairs/NNS
,/,
began/VBD
a/DT
five-day/JJ
visit/NN
to/TO
discuss/VB
such/JJ
matters/NNS
as/IN
compensation/NN
to/TO
French/JJ
enterprises/NNS
for/IN
contracts/NNS
broken/VBN
by/IN
the/DT
Khomeini/NNP
regime/NN
./.
Toto/NNP
Co./NNP
,/,
a/DT
Japanese/JJ
ceramics/NNS
maker/NN
,/,
has/VBZ
developed/VBN
a/DT
toilet/NN
that/WDT
can/MD
check/VB
the/DT
user/NN
's/POS
health/NN
./.
A/DT
Toto/NNP
spokesman/NN
said/VBD
the/DT
toilet/NN
not/RB
only/RB
tests/VBZ
blood/NN
pressure/NN
,/,
pulse/NN
and/CC
urine/NN
,/,
it/PRP
also/RB
stores/VBZ
the/DT
data/NNS
for/IN
up/IN
to/TO
130/CD
days/NNS
./.
Nippon/NNP
Telegraph/NNP
&/CC
Telephone/NNP
Corp./NNP
and/CC
Omron/NNP
Tateisi/NNP
Electronics/NNP
are/VBP
involved/VBN
with/IN
Toto/NNP
's/POS
new/JJ
product/NN
,/,
which/WDT
will/MD
go/VB
on/IN
the/DT
market/NN
in/IN
about/RB
two/CD
years/NNS
time/NN
./.
``/``
It/PRP
will/MD
be/VB
very/RB
expensive/JJ
,/,
''/''
the/DT
spokesman/NN
warned/VBD
./.
``/``
The/DT
price/NN
can/MD
not/RB
be/VB
less/JJR
than/IN
$/$
7,000/CD
./.
''/''
Since/IN
Mexican/NNP
President/NNP
Carlos/NNP
Salinas/NNP
de/NNP
Gortari/NNP
took/VBD
office/NN
last/JJ
December/NNP
,/,
special/JJ
agents/NNS
have/VBP
arrested/VBN
more/JJR
than/IN
6,000/CD
federal/JJ
employees/NNS
on/IN
charges/NNS
ranging/VBG
from/IN
extortion/NN
to/TO
tax/NN
evasion/NN
./.
Hector/NNP
Castaneda/NNP
Jimenez/NNP
,/,
chief/JJ
prosecutor/NN
at/IN
the/DT
Attorney/NNP
General/NNP
's/POS
Office/NN
,/,
said/VBD
that/IN
an/DT
estimated/JJ
$/$
82.8/CD
million/CD
in/IN
government/NN
property/NN
and/CC
unpaid/JJ
taxes/NNS
have/VBP
been/VBN
recovered/VBN
in/IN
the/DT
campaign/NN
to/TO
root/VB
out/RP
official/JJ
corruption/NN
./.
Mr./NNP
Castaneda/NNP
's/POS
office/NN
will/MD
reportedly/RB
issue/VB
warrants/NNS
during/IN
the/DT
next/JJ
six/CD
months/NNS
for/IN
the/DT
arrest/NN
of/IN
another/DT
10,000/CD
federal/JJ
employees/NNS
./.
Those/DT
employees/NNS
are/VBP
suspected/VBN
of/IN
illegally/RB
gaining/VBG
an/DT
estimated/JJ
$/$
376.8/CD
million/CD
,/,
the/DT
prosecutor/NN
was/VBD
quoted/VBN
as/IN
saying/VBG
by/IN
the/DT
Excelsior/NNP
news/NN
service/NN
./.
He/PRP
added/VBD
that/IN
federal/JJ
agents/NNS
hope/VBP
to/TO
recover/VB
at/IN
least/JJS
half/PDT
that/DT
amount/NN
./.
``/``
The/DT
rest/NN
will/MD
probably/RB
not/RB
be/VB
recoverable/JJ
either/CC
because/IN
the/DT
statute/NN
of/IN
limitations/NNS
expired/VBD
or/CC
because/IN
many/JJ
prefer/VBP
to/TO
spend/VB
additional/JJ
time/NN
in/IN
jail/NN
rather/RB
than/IN
return/VB
the/DT
money/NN
,/,
''/''
the/DT
prosecutor/NN
said/VBD
./.
The/DT
United/NNP
Nations/NNP
,/,
which/WDT
is/VBZ
distributing/VBG
farm/NN
tools/NNS
to/TO
returning/VBG
refugees/NNS
in/IN
Namibia/NNP
,/,
is/VBZ
rethinking/VBG
a/DT
plan/NN
to/TO
hand/NN
out/IN
machetes/NNS
because/IN
of/IN
the/DT
tense/JJ
political/JJ
climate/NN
during/IN
preparations/NNS
for/IN
independence/NN
from/IN
South/NNP
Africa/NNP
./.
``/``
The/DT
decision/NN
to/TO
distribute/VB
machetes/NNS
at/IN
this/DT
time/NN
,/,
which/WDT
could/MD
be/VB
used/VBN
as/IN
weapons/NNS
,/,
is/VBZ
under/IN
review/NN
,/,
''/''
said/VBD
a/DT
U.N./NNP
spokesman/NN
.../:
./.
Sources/NNS
close/RB
to/TO
the/DT
family/NN
of/IN
Pakistani/NNP
Prime/NNP
Minister/NNP
Benazir/NNP
Bhutto/NNP
said/VBD
she/PRP
is/VBZ
expecting/VBG
a/DT
second/JJ
child/NN
,/,
probably/RB
early/RB
next/JJ
year/NN
./.
Cray/NNP
Research/NNP
Inc./NNP
forecast/VBD
that/IN
1990/CD
will/MD
be/VB
a/DT
no-growth/JJ
year/NN
for/IN
its/PRP$
supercomputer/NN
line/NN
./.
In/IN
what/WP
has/VBZ
become/VBN
a/DT
series/NN
of/IN
bad-news/JJ
announcements/NNS
,/,
the/DT
world/NN
's/POS
largest/JJS
maker/NN
of/IN
supercomputers/NNS
said/VBD
that/IN
after/IN
reviewing/VBG
its/PRP$
order/NN
prospects/NNS
,/,
``/``
we/PRP
have/VBP
concluded/VBN
it/PRP
is/VBZ
prudent/JJ
to/TO
plan/VB
for/IN
next/JJ
year/NN
on/IN
the/DT
assumption/NN
that/DT
revenue/NN
again/RB
will/MD
be/VB
flat/JJ
./.
''/''
Cray/NNP
jolted/VBD
the/DT
market/NN
in/IN
July/NNP
when/WRB
it/PRP
slashed/VBD
revenue/NN
and/CC
earnings/NNS
projections/NNS
for/IN
this/DT
year/NN
,/,
citing/VBG
a/DT
slowing/VBG
economy/NN
that/WDT
has/VBZ
delayed/VBN
orders/NNS
from/IN
government/NN
as/RB
well/RB
as/IN
commercial/JJ
customers/NNS
./.
The/DT
company/NN
made/VBD
its/PRP$
1990/CD
projection/NN
--/:
an/DT
unusual/JJ
event/NN
for/IN
Cray/NNP
--/:
in/IN
announcing/VBG
improved/JJ
net/JJ
income/NN
for/IN
the/DT
third/JJ
quarter/NN
./.
Cray/NNP
said/VBD
it/PRP
earned/VBD
$/$
30.6/CD
million/CD
,/,
or/CC
$/$
1.04/CD
a/DT
share/NN
,/,
up/RB
35/CD
%/NN
from/IN
$/$
22.6/CD
million/CD
,/,
or/CC
73/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
ago/RB
./.
Revenue/NN
gained/VBD
45/CD
%/NN
to/TO
$/$
210.2/CD
million/CD
from/IN
$/$
145.2/CD
million/CD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
earnings/NNS
totaled/VBD
$/$
36.6/CD
million/CD
,/,
or/CC
$/$
1.24/CD
a/DT
share/NN
,/,
down/RB
46/CD
%/NN
from/IN
$/$
68.1/CD
million/CD
,/,
or/CC
$/$
2.19/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Revenue/NN
was/VBD
$/$
454.6/CD
million/CD
,/,
a/DT
6.9/CD
%/NN
gain/NN
from/IN
$/$
425.4/CD
million/CD
./.
Cray/NNP
made/VBD
its/PRP$
announcement/NN
after/IN
the/DT
stock/NN
market/NN
closed/VBD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
Cray/NNP
closed/VBD
down/RB
$/$
1.125/CD
at/IN
$/$
34.25/CD
./.
Cray/NNP
said/VBD
its/PRP$
order/NN
backlog/NN
at/IN
Sept./NNP
30/CD
was/VBD
$/$
315/CD
million/CD
,/,
down/RB
$/$
25/CD
million/CD
from/IN
June/NNP
30/CD
./.
Marcello/NNP
Gumucio/NNP
,/,
president/NN
,/,
said/VBD
the/DT
company/NN
``/``
did/VBD
well/RB
in/IN
the/DT
quarter/NN
as/RB
far/RB
as/IN
revenues/NNS
and/CC
earnings/NNS
are/VBP
concerned/VBN
,/,
and/CC
not/RB
quite/RB
as/RB
well/RB
in/IN
terms/NNS
of/IN
signing/VBG
orders/NNS
./.
''/''
As/IN
for/IN
the/DT
current/JJ
period/NN
,/,
Mr./NNP
Gumucio/NNP
said/VBD
,/,
``/``
We/PRP
anticipate/VBP
that/DT
fourth-quarter/JJ
revenue/NN
and/CC
earnings/NNS
will/MD
be/VB
substantially/RB
greater/JJR
than/IN
any/DT
of/IN
the/DT
preceding/JJ
three/CD
quarters/NNS
,/,
but/CC
not/RB
up/IN
to/TO
the/DT
record/NN
levels/NNS
of/IN
last/JJ
year/NN
's/POS
fourth/JJ
quarter/NN
''/''
when/WRB
Cray/NNP
earned/VBD
$/$
88.5/CD
million/CD
,/,
or/CC
$/$
2.80/CD
a/DT
share/NN
./.
He/PRP
added/VBD
that/IN
the/DT
company/NN
expects/VBZ
``/``
strong/JJ
''/''
operating/NN
profit/NN
for/IN
the/DT
year/NN
,/,
``/``
but/CC
at/IN
a/DT
level/NN
significantly/RB
lower/JJR
than/IN
last/JJ
year/NN
./.
''/''
He/PRP
said/VBD
1989/CD
's/POS
net/JJ
income/NN
could/MD
be/VB
11/CD
%/NN
to/TO
13/CD
%/NN
of/IN
revenue/NN
,/,
which/WDT
,/,
assuming/VBG
current/JJ
expectations/NNS
,/,
would/MD
be/VB
40/CD
%/NN
to/TO
45/CD
%/NN
below/IN
1988/CD
's/POS
level/NN
./.
Last/JJ
year/NN
,/,
Cray/NNP
earned/VBD
$/$
156.6/CD
million/CD
,/,
or/CC
$/$
4.99/CD
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
756.3/CD
million/CD
./.
Next/JJ
year/NN
``/``
looks/VBZ
dismal/JJ
,/,
''/''
said/VBD
analyst/NN
Paul/NNP
Luber/NNP
of/IN
Robert/NNP
Baird/NNP
&/CC
Co./NNP
,/,
Milwaukee/NNP
./.
Noting/VBG
that/IN
Cray/NNP
does/VBZ
n't/RB
have/VB
a/DT
low-end/JJ
supercomputer/NN
to/TO
compete/VB
with/IN
the/DT
likes/NNS
of/IN
Convex/NNP
Computer/NNP
Corp./NNP
and/CC
International/NNP
Business/NNP
Machines/NNP
Corp./NNP
,/,
Mr./NNP
Luber/NNP
said/VBD
such/PDT
a/DT
machine/NN
would/MD
be/VB
necessary/JJ
``/``
to/TO
get/VB
things/NNS
back/RB
on/IN
line/NN
here/RB
./.
''/''
Cray/NNP
has/VBZ
indicated/VBN
it/PRP
will/MD
decide/VB
on/IN
whether/IN
to/TO
build/VB
such/PDT
a/DT
machine/NN
before/IN
year/NN
end/NN
./.
Johnson/NNP
&/CC
Johnson/NNP
reported/VBD
a/DT
10/CD
%/NN
rise/NN
in/IN
third-quarter/JJ
net/JJ
income/NN
on/IN
a/DT
12/CD
%/NN
sales/NNS
increase/NN
-/:
results/NNS
that/WDT
were/VBD
driven/VBN
particularly/RB
by/IN
new/JJ
products/NNS
including/VBG
pharmaceuticals/NNS
and/CC
the/DT
company/NN
's/POS
professional/JJ
operations/NNS
./.
Net/NN
for/IN
the/DT
New/NNP
Brunswick/NNP
,/,
N.J./NNP
,/,
maker/NN
of/IN
health-care/NN
products/NNS
climbed/VBD
to/TO
$/$
265/CD
million/CD
,/,
or/CC
80/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
240/CD
million/CD
,/,
or/CC
71/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
year-earlier/JJ
period/NN
./.
Sales/NNS
rose/VBD
to/TO
$/$
2.45/CD
billion/CD
from/IN
$/$
2.2/CD
billion/CD
./.
The/DT
year-ago/JJ
per-share/JJ
earnings/NNS
are/VBP
adjusted/VBN
to/TO
reflect/VB
a/DT
2-for-1/JJ
stock/NN
split/VBD
last/JJ
May/NNP
./.
In/IN
a/DT
statement/NN
,/,
Ralph/NNP
S./NNP
Larsen/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
said/VBD
the/DT
company/NN
was/VBD
pleased/JJ
with/IN
its/PRP$
third-quarter/JJ
sales/NNS
performance/NN
,/,
``/``
especially/RB
in/IN
light/NN
of/IN
the/DT
extremely/RB
competitive/JJ
environment/NN
in/IN
domestic/JJ
consumer/NN
markets/NNS
and/CC
the/DT
negative/JJ
impact/NN
of/IN
unfavorable/JJ
exchange/NN
rates/NNS
this/DT
quarter/NN
./.
''/''
David/NNP
J./NNP
Lothson/NNP
,/,
an/DT
industry/NN
analyst/NN
for/IN
PaineWebber/NNP
Group/NNP
Inc./NNP
,/,
said/VBD
Johnson/NNP
&/CC
Johnson/NNP
's/POS
results/NNS
slightly/RB
exceeded/VBD
his/PRP$
expectations/NNS
for/IN
the/DT
third/JJ
quarter/NN
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/NN
trading/VBG
yesterday/NN
,/,
Johnson/NNP
&/CC
Johnson/NNP
shares/NNS
fell/VBD
37.5/CD
cents/NNS
to/TO
$/$
54.625/CD
./.
Mr./NNP
Larsen/NNP
noted/VBD
``/``
substantial/JJ
sales/NNS
growth/NN
''/''
for/IN
the/DT
recently/RB
introduced/VBN
Acuvue/NNP
disposable/JJ
contact/NN
lens/NN
and/CC
Hismanal/NNP
,/,
a/DT
once-a-day/JJ
antihistamine/NN
./.
Eprex/NNP
,/,
used/VBN
by/IN
dialysis/NN
patients/NNS
who/WP
are/VBP
anemic/JJ
,/,
and/CC
Prepulsid/NN
,/,
a/DT
gastro-intestinal/JJ
drug/NN
,/,
did/VBD
well/RB
overseas/RB
,/,
he/PRP
said/VBD
./.
Despite/IN
health-care/NN
cost/NN
controls/NNS
and/CC
programs/NNS
to/TO
hold/VB
down/RP
inventory/NN
,/,
the/DT
professional/JJ
division/NN
,/,
which/WDT
makes/VBZ
products/NNS
including/VBG
sutures/NNS
and/CC
surgical/JJ
stapling/NN
equipment/NN
,/,
``/``
achieved/VBD
solid/JJ
growth/NN
,/,
''/''
Johnson/NNP
&/CC
Johnson/NNP
said/VBD
./.
But/CC
domestic/JJ
consumer/NN
sales/NNS
slipped/VBD
1.2/CD
%/NN
for/IN
the/DT
quarter/NN
,/,
to/TO
$/$
490/CD
million/CD
from/IN
$/$
496/CD
million/CD
./.
The/DT
company/NN
cited/VBD
softness/NN
in/IN
the/DT
retail/JJ
health/NN
and/CC
beauty/NN
aids/NNS
category/NN
,/,
``/``
as/RB
well/RB
as/IN
the/DT
intense/JJ
competition/NN
in/IN
the/DT
company/NN
's/POS
sanitary/JJ
protection/NN
product/NN
line/NN
./.
''/''
Overseas/JJ
sales/NNS
were/VBD
stronger/JJR
,/,
principally/RB
because/IN
of/IN
a/DT
rebound/NN
in/IN
Brazil/NNP
,/,
where/WRB
economic/JJ
turmoil/NN
had/VBD
hurt/VBN
year-earlier/JJ
results/NNS
,/,
Johnson/NNP
&/CC
Johnson/NNP
said/VBD
./.
Mr./NNP
Lothson/NNP
of/IN
PaineWebber/NNP
said/VBD
the/DT
company/NN
's/POS
sales/NNS
pace/NN
has/VBZ
been/VBN
picking/VBG
up/RP
largely/RB
because/IN
the/DT
effect/NN
of/IN
unfavorable/JJ
exchange/NN
rates/NNS
has/VBZ
been/VBN
easing/VBG
--/:
a/DT
pattern/NN
continuing/VBG
this/DT
quarter/NN
./.
He/PRP
cautioned/VBD
,/,
however/RB
,/,
that/IN
a/DT
``/``
tough/JJ
tax-rate/NN
comparison/NN
''/''
may/MD
slow/VB
the/DT
company/NN
's/POS
earnings/NNS
growth/NN
for/IN
the/DT
current/JJ
quarter/NN
./.
For/IN
last/JJ
year/NN
's/POS
fourth/JJ
quarter/NN
,/,
the/DT
company/NN
's/POS
tax/NN
rate/NN
was/VBD
less/JJR
than/IN
20/CD
%/NN
,/,
he/PRP
said/VBD
./.
While/IN
the/DT
third/JJ
period/NN
contained/VBD
no/DT
major/JJ
surprises/NNS
,/,
Mr./NNP
Lothson/NNP
said/VBD
,/,
the/DT
results/NNS
show/VBP
how/WRB
sensitive/JJ
the/DT
multinationals/NNS
can/MD
be/VB
to/TO
developments/NNS
in/IN
a/DT
single/JJ
country/NN
such/JJ
as/IN
Brazil/NNP
./.
He/PRP
also/RB
questioned/VBD
whether/IN
recent/JJ
gains/NNS
in/IN
that/DT
country/NN
can/MD
be/VB
sustained/VBN
./.
The/DT
following/JJ
issues/NNS
were/VBD
recently/RB
filed/VBN
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
:/:
Bergen/NNP
Brunswig/NNP
Corp./NNP
,/,
proposed/JJ
offering/NN
of/IN
liquid/JJ
yield/NN
option/NN
notes/NNS
,/,
via/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
./.
Columbia/NNP
Gas/NNP
System/NNP
Inc./NNP
,/,
shelf/NN
offering/NN
of/IN
up/IN
to/TO
$/$
200/CD
million/CD
of/IN
debentures/NNS
./.
Laserscope/NNP
,/,
initial/JJ
offering/NN
of/IN
1,656,870/CD
common/JJ
shares/NNS
,/,
of/IN
which/WDT
1,455,000/CD
shares/NNS
are/VBP
to/TO
be/VB
sold/VBN
by/IN
the/DT
company/NN
and/CC
201,870/CD
by/IN
holders/NNS
,/,
via/IN
Alex/NNP
./.
Brown/NNP
&/CC
Sons/NNP
Inc./NNP
and/CC
Volpe/NNP
,/,
Covington/NNP
&/CC
Welty/NNP
./.
TeleVideo/NNP
Systems/NNP
Inc./NNP
,/,
proposed/JJ
offering/NN
of/IN
1,853,735/CD
common/JJ
shares/NNS
,/,
to/TO
be/VB
sold/VBN
by/IN
holders/NNS
./.
Western/NNP
Gas/NNP
System/NNP
Inc./NNP
,/,
initial/JJ
offering/NN
of/IN
3,250,000/CD
common/JJ
shares/NNS
,/,
of/IN
which/WDT
3,040,000/CD
shares/NNS
will/MD
be/VB
sold/VBN
by/IN
the/DT
company/NN
and/CC
210,000/CD
by/IN
a/DT
holder/NN
,/,
via/IN
Prudential-Bache/NNP
Capital/NNP
Funding/NNP
,/,
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
&/CC
Co./NNP
and/CC
Hanifen/NNP
,/,
Imhoff/NNP
Inc/NNP
./.
Insiders/NNS
have/VBP
been/VBN
selling/VBG
shares/NNS
in/IN
Dun/NNP
&/CC
Bradstreet/NNP
Corp./NNP
,/,
the/DT
huge/JJ
credit-information/NN
concern/NN
./.
Six/CD
top/JJ
executives/NNS
at/IN
the/DT
New/NNP
York-based/JJ
company/NN
sold/VBD
shares/NNS
in/IN
August/NNP
and/CC
September/NNP
./.
Four/CD
of/IN
those/DT
insiders/NNS
sold/VBD
more/JJR
than/IN
half/PDT
their/PRP$
holdings/NNS
./.
The/DT
stock/NN
,/,
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
closed/VBD
at/IN
$/$
51.75/CD
,/,
up/RB
62.5/CD
cents/NNS
,/,
well/RB
below/IN
the/DT
$/$
56.13/CD
to/TO
$/$
60/CD
a/DT
share/NN
the/DT
insiders/NNS
received/VBD
for/IN
their/PRP$
shares/NNS
./.
Much/JJ
of/IN
the/DT
recent/JJ
slide/NN
in/IN
Dun/NNP
&/CC
Bradstreet/NNP
's/POS
stock/NN
came/VBD
late/RB
last/JJ
week/NN
,/,
after/IN
negative/JJ
comments/NNS
by/IN
analysts/NNS
at/IN
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
and/CC
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
./.
A/DT
company/NN
spokesman/NN
declined/VBD
to/TO
comment/VB
and/CC
said/VBD
that/IN
the/DT
officials/NNS
who/WP
sold/VBD
shares/NNS
would/MD
n't/RB
comment/VB
./.
One/CD
of/IN
Dun/NNP
&/CC
Bradstreet/NNP
's/POS
chief/JJ
businesses/NNS
is/VBZ
compiling/VBG
reports/NNS
that/WDT
rate/VBP
the/DT
credit-worthiness/NN
of/IN
millions/NNS
of/IN
American/JJ
companies/NNS
./.
It/PRP
also/RB
owns/VBZ
Moody/NNP
's/POS
Investors/NNP
Service/NNP
,/,
which/WDT
assigns/VBZ
credit-ratings/NNS
to/TO
bonds/NNS
and/CC
preferred/JJ
stock/NN
;/:
A.C./NNP
Nielsen/NNP
,/,
known/VBN
for/IN
its/PRP$
data/NNS
on/IN
television-viewing/NN
patterns/NNS
,/,
and/CC
Yellow-pages/NN
publisher/NN
Donnelley/NNP
./.
Last/JJ
March/NNP
,/,
this/DT
newspaper/NN
reported/VBD
on/IN
widespread/JJ
allegations/NNS
that/IN
the/DT
company/NN
misled/VBD
many/JJ
customers/NNS
into/IN
purchasing/VBG
more/JJR
credit-data/NN|NNS
services/NNS
than/IN
needed/VBN
./.
In/IN
June/NNP
,/,
the/DT
company/NN
agreed/VBD
to/TO
settle/VB
for/IN
$/$
18/CD
million/CD
several/JJ
lawsuits/NNS
related/VBN
to/TO
its/PRP$
sales/NNS
practices/NNS
,/,
without/IN
admitting/VBG
or/CC
denying/VBG
the/DT
charges/NNS
./.
An/DT
investigation/NN
by/IN
U.S./NNP
Postal/NNP
inspectors/VBZ
is/VBZ
continuing/VBG
./.
Among/IN
the/DT
insider/NN
sales/NNS
,/,
Charles/NNP
Raikes/NNP
,/,
the/DT
firm/NN
's/POS
general/JJ
counsel/NN
,/,
sold/VBD
12,281/CD
shares/NNS
in/IN
August/NNP
,/,
representing/VBG
46/CD
%/NN
of/IN
his/PRP$
holdings/NNS
in/IN
the/DT
company/NN
./.
He/PRP
received/VBD
$/$
724,579/CD
for/IN
the/DT
shares/NNS
,/,
according/VBG
to/TO
insider/NN
filings/NNS
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
./.
John/NNP
C./NNP
Holt/NNP
,/,
an/DT
executive/JJ
vice/NN
president/NN
and/CC
Dun/NNP
&/CC
Bradstreet/NNP
director/NN
,/,
sold/VBD
10,000/CD
shares/NNS
on/IN
Aug./NNP
31/CD
for/IN
$/$
588,800/CD
,/,
filings/NNS
show/VBP
./.
He/PRP
retains/VBZ
9,232/CD
shares/NNS
./.
William/NNP
H.J./NNP
Buchanan/NNP
,/,
the/DT
firm/NN
's/POS
secretary/NN
and/CC
associate/JJ
general/JJ
counsel/NN
,/,
sold/VBD
7,000/CD
shares/NNS
in/IN
two/CD
separate/JJ
sales/NNS
in/IN
September/NNP
for/IN
$/$
406,000/CD
./.
The/DT
shares/NNS
represented/VBD
66/CD
%/NN
of/IN
his/PRP$
Dun/NNP
&/CC
Bradstreet/NNP
holdings/NNS
,/,
according/VBG
to/TO
the/DT
company/NN
./.
The/DT
other/JJ
insiders/NNS
,/,
all/RB
senior/JJ
or/CC
executive/JJ
vice/NN
presidents/NNS
,/,
sold/VBD
between/IN
2,520/CD
and/CC
6,881/CD
shares/NNS
,/,
representing/VBG
between/IN
8/CD
%/NN
and/CC
70/CD
%/NN
of/IN
their/PRP$
holdings/NNS
,/,
according/VBG
to/TO
SEC/NNP
filings/NNS
./.
Dun/NNP
&/CC
Bradstreet/NNP
's/POS
stock/NN
price/NN
began/VBD
its/PRP$
recent/JJ
spiral/NN
downward/RB
last/JJ
Wednesday/NNP
,/,
when/WRB
the/DT
company/NN
reported/VBD
third-quarter/JJ
results/NNS
./.
Net/JJ
income/NN
rose/VBD
to/TO
83/CD
cents/NNS
a/DT
share/NN
from/IN
72/CD
cents/NNS
a/DT
share/NN
the/DT
year-earlier/JJ
period/NN
./.
But/CC
analysts/NNS
focused/VBD
more/RBR
on/IN
the/DT
drop/NN
in/IN
revenue/NN
,/,
to/TO
$/$
1.04/CD
billion/CD
from/IN
$/$
1.07/CD
billion/CD
,/,
reflecting/VBG
in/IN
part/NN
a/DT
continuing/VBG
drop/NN
in/IN
sales/NNS
of/IN
the/DT
controversial/JJ
credit-reporting/JJ
services/NNS
./.
Last/JJ
Thursday/NNP
,/,
Merrill/NNP
Lynch/NNP
securities/NNS
analyst/NN
Peter/NNP
Falco/NNP
downgraded/VBD
his/PRP$
investment/NN
rating/NN
on/IN
the/DT
firm/NN
,/,
according/VBG
to/TO
Dow/NNP
Jones/NNP
Professional/NNP
Investors/NNP
Report/NNP
,/,
citing/VBG
a/DT
slowdown/NN
in/IN
the/DT
credit-reporting/JJ
business/NN
./.
He/PRP
cut/VBD
his/PRP$
rating/NN
to/TO
a/DT
short-term/JJ
hold/NN
from/IN
above-average/JJ
performer/NN
and/CC
reduced/VBD
his/PRP$
1990/CD
earnings/NNS
estimate/NN
./.
Mr./NNP
Falco/NNP
continues/VBZ
to/TO
rank/VB
the/DT
stock/NN
a/DT
longterm/JJ
buy/NN
./.
The/DT
stock/NN
slid/VBD
$/$
1.875/CD
on/IN
more/JJR
than/IN
four/CD
times/NNS
average/JJ
daily/JJ
volume/NN
./.
The/DT
stock/NN
received/VBD
another/DT
blow/NN
on/IN
Friday/NNP
,/,
when/WRB
Goldman/NNP
Sachs/NNP
analyst/NN
Eric/NNP
Philo/NNP
advised/VBD
that/IN
investors/NNS
with/IN
short-term/JJ
horizons/NNS
should/MD
avoid/VB
Dun/NNP
&/CC
Bradstreet/NNP
stock/NN
because/IN
it/PRP
is/VBZ
unlikely/JJ
to/TO
outperform/VB
the/DT
market/NN
./.
The/DT
stock/NN
fell/VBD
75/CD
cents/NNS
./.
Insider/NN
selling/NN
is/VBZ
not/RB
unusual/JJ
at/IN
Dun/NNP
&/CC
Bradstreet/NNP
;/:
in/IN
fact/NN
,/,
the/DT
recent/JJ
pace/NN
of/IN
selling/NN
is/VBZ
just/RB
about/RB
average/NN
for/IN
the/DT
company/NN
,/,
according/VBG
to/TO
figures/NNS
compiled/VBN
by/IN
Invest\/Net/NNP
,/,
a/DT
North/NNP
Miami/NNP
,/,
Fla./NNP
,/,
firm/NN
that/WDT
specializes/VBZ
in/IN
tracking/VBG
and/CC
analyzing/VBG
SEC/NNP
insider/NN
filings/NNS
./.
But/CC
previous/JJ
sales/NNS
have/VBP
often/RB
been/VBN
sales/NNS
of/IN
shares/NNS
purchased/VBN
through/IN
the/DT
exercise/NN
of/IN
stock/NN
options/NNS
and/CC
sold/VBN
six/CD
months/NNS
later/RB
,/,
as/RB
soon/RB
as/IN
allowed/VBN
,/,
said/VBD
Robert/NNP
Gabele/NNP
,/,
president/NN
of/IN
Invest\/Net/NNP
./.
The/DT
most/RBS
recent/JJ
sales/NNS
do/VBP
n't/RB
appear/VB
to/TO
be/VB
option-related/JJ
,/,
he/PRP
said/VBD
./.
TASTY/JJ
PROFITS/NNS
:/:
Michael/NNP
A./NN
Miles/NNP
,/,
chief/JJ
executive/JJ
officer/NN
of/IN
Philip/NNP
Morris/NNP
Cos/NNP
./.
'/''
Kraft/NNP
General/NNP
Foods/NNP
unit/NN
,/,
bought/VBD
6,000/CD
shares/NNS
of/IN
the/DT
company/NN
on/IN
Sept./NNP
22/CD
for/IN
$/$
157/CD
each/DT
./.
The/DT
$/$
942,000/CD
purchase/NN
raised/VBD
his/PRP$
holdings/NNS
to/TO
74,000/CD
shares/NNS
./.
The/DT
stock/NN
split/VBD
four-for-one/RB
on/IN
Oct./NNP
10/CD
./.
Mr./NNP
Miles/NNP
's/VBZ
newly/RB
purchased/VBN
shares/NNS
are/VBP
now/RB
worth/JJ
$/$
1,068,000/CD
,/,
based/VBN
on/IN
Philip/NNP
Morris/NNP
's/POS
closing/NN
price/NN
of/IN
$/$
44.50/CD
,/,
up/RB
62.5/CD
cents/NNS
,/,
in/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
yesterday/NN
./.
A/DT
spokesman/NN
for/IN
Mr./NNP
Miles/NNP
said/VBD
he/PRP
bought/VBD
the/DT
shares/NNS
because/IN
he/PRP
felt/VBD
they/PRP
were/VBD
``/``
a/DT
good/JJ
investment/NN
./.
''/''
The/DT
executive/NN
made/VBD
his/PRP$
purchases/NNS
shortly/RB
before/IN
being/VBG
named/VBN
to/TO
his/PRP$
current/JJ
chief/JJ
executive/JJ
officer/NN
's/POS
position/NN
;/:
formerly/RB
he/PRP
was/VBD
Kraft/NNP
General/NNP
Foods/NNP
'/POS
chief/JJ
operating/NN
officer/NN
./.
SHEDDING/VBG
GLITTER/NN
:/:
Two/CD
directors/NNS
of/IN
Pegasus/NNP
Gold/NNP
Inc./NNP
,/,
a/DT
Spokane/NNP
,/,
Wash./NNP
,/,
precious-metals/NNS
mining/NN
firm/NN
,/,
sold/VBD
most/JJS
of/IN
their/PRP$
holdings/NNS
in/IN
the/DT
company/NN
Aug./NNP
31/CD
./.
John/NNP
J./NNP
Crabb/NNP
sold/VBD
4,500/CD
shares/NNS
for/IN
$/$
11.13/CD
each/DT
,/,
leaving/VBG
himself/PRP
with/IN
a/DT
stake/NN
of/IN
500/CD
shares/NNS
./.
He/PRP
received/VBD
$/$
50,085/CD
./.
Peter/NNP
Kutney/NNP
sold/VBD
5,000/CD
shares/NNS
,/,
all/DT
of/IN
his/PRP$
holdings/NNS
,/,
for/IN
$/$
11.38/CD
a/DT
share/NN
,/,
or/CC
$/$
56,900/CD
./.
Gary/NNP
Straub/NNP
,/,
corporate/JJ
counsel/NN
for/IN
the/DT
company/NN
,/,
said/VBD
the/DT
directors/NNS
sold/VBD
for/IN
``/``
personal/JJ
financial/JJ
reasons/NNS
./.
''/''
Both/DT
insiders/NNS
declined/VBD
to/TO
comment/VB
./.
On/IN
Wall/NNP
Street/NNP
,/,
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
analyst/NN
Daniel/NNP
A./NNP
Roling/NNP
rates/VBZ
the/DT
stock/NN
``/``
neutral/JJ
''/''
and/CC
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
lists/VBZ
it/PRP
as/IN
a/DT
``/``
buy/NN
./.
''/''
Pegasus/NNP
Gold/NNP
``/``
has/VBZ
been/VBN
on/IN
a/DT
lot/NN
of/IN
recommended/JJ
lists/NNS
as/IN
a/DT
junior/JJ
growth/NN
company/NN
stepping/VBG
into/IN
the/DT
big/JJ
leagues/NNS
,/,
''/''
says/VBZ
Marty/NNP
McNeill/NNP
,/,
metals/NNS
analyst/NN
at/IN
Dominick/NNP
&/CC
Dominick/NNP
,/,
a/DT
New/NNP
York/NNP
investment/NN
firm/NN
./.
``/``
It/PRP
's/VBZ
a/DT
good/JJ
company/NN
,/,
and/CC
growing/VBG
;/:
there/EX
's/VBZ
nothing/NN
that/WDT
would/MD
warrant/VB
that/IN
it/PRP
be/VB
sold/VBN
./.
''/''
Yesterday/NN
,/,
in/IN
composite/JJ
trading/NN
on/IN
the/DT
American/NNP
Stock/NNP
Exchange/NNP
,/,
Pegasus/NNP
closed/VBD
at/IN
$/$
10.125/CD
,/,
up/RB
12.5/CD
cents/NNS
./.
Medieval/JJ
philosophers/NNS
used/VBD
to/TO
hold/VB
the/DT
sensible/JJ
belief/NN
that/IN
it/PRP
was/VBD
more/RBR
perfect/JJ
to/TO
exist/VB
than/IN
not/RB
to/TO
exist/VB
,/,
and/CC
that/IN
to/TO
exist/VB
as/IN
a/DT
matter/NN
of/IN
necessity/NN
was/VBD
most/RBS
perfect/JJ
of/IN
all/DT
./.
Now/RB
,/,
only/RB
God/NNP
exists/VBZ
as/IN
a/DT
matter/NN
of/IN
absolute/JJ
necessity/NN
;/:
it/PRP
is/VBZ
built/VBN
into/IN
His/PRP$
nature/NN
./.
But/CC
since/IN
the/DT
time/NN
of/IN
Darwin/NNP
,/,
we/PRP
humans/NNS
could/MD
at/IN
least/JJS
claim/NN
a/DT
sort/NN
of/IN
natural/JJ
necessity/NN
for/IN
the/DT
existence/NN
of/IN
our/PRP$
species/NNS
./.
Are/VBP
n't/RB
we/PRP
,/,
after/IN
all/DT
,/,
the/DT
inevitable/JJ
culmination/NN
of/IN
that/DT
stately/JJ
pageant/NN
called/VBN
evolution/NN
?/.
If/IN
mutation/NN
and/CC
natural/NN
selection/NN
slowly/RB
but/CC
surely/RB
give/VBP
rise/NN
to/TO
more/RBR
and/CC
more/RBR
advanced/JJ
forms/NNS
of/IN
life/NN
,/,
then/RB
it/PRP
was/VBD
only/RB
a/DT
matter/NN
of/IN
eons/NNS
before/IN
splendid/JJ
beings/NNS
endowed/VBN
with/IN
reason/NN
,/,
self-awareness/NN
and/CC
taste/NN
shimmered/VBD
onto/IN
the/DT
scene/NN
./.
Now/RB
along/RB
comes/VBZ
Stephen/NNP
Jay/NNP
Gould/NNP
to/TO
dash/VB
this/DT
flattering/JJ
illusion/NN
./.
His/PRP$
credentials/NNS
are/VBP
excellent/JJ
for/IN
the/DT
task/NN
./.
Star/JJ
lecturer/NN
at/IN
Harvard/NNP
,/,
author/NN
of/IN
numerous/JJ
popular/JJ
books/NNS
on/IN
science/NN
,/,
and/CC
scourge/NN
of/IN
the/DT
creationist/JJ
lobby/NN
,/,
Mr./NNP
Gould/NNP
is/VBZ
perhaps/RB
the/DT
world/NN
's/VBZ
most/RBS
eminent/JJ
evolutionary/JJ
theorist/NN
./.
Yet/RB
he/PRP
puts/VBZ
quite/RB
a/DT
twist/NN
on/IN
the/DT
old/JJ
story/NN
handed/VBN
down/RP
from/IN
Darwin/NNP
./.
For/IN
him/PRP
,/,
natural/JJ
history/NN
is/VBZ
anything/NN
but/CC
a/DT
gradual/JJ
,/,
predictable/JJ
march/NN
from/IN
primordial/JJ
slime/NN
to/TO
human/JJ
consciousness/NN
;/:
it/PRP
is/VBZ
a/DT
careening/VBG
,/,
chaotic/JJ
affair/NN
in/IN
which/WDT
the/DT
emergence/NN
of/IN
a/DT
featherless/JJ
biped/NN
was/VBD
a/DT
one-in-a-million/JJ
shot/NN
./.
In/IN
``/``
Wonderful/JJ
Life/NN
:/:
The/DT
Burgess/NNP
Shale/NNP
and/CC
the/DT
Nature/NN
of/IN
History/NN
''/''
(/(
Norton/NNP
,/,
326/CD
pages/NNS
,/,
$/$
19.95/CD
Mr./NNP
Gould/NNP
makes/VBZ
his/PRP$
case/NN
for/IN
``/``
the/DT
awesome/JJ
improbability/NN
of/IN
human/JJ
evolution/NN
./.
''/''
The/DT
argument/NN
turns/VBZ
on/IN
the/DT
discovery/NN
in/IN
1909/CD
of/IN
an/DT
amazing/JJ
fossil/NN
quarry/NN
high/RB
in/IN
the/DT
Canadian/JJ
Rockies/NNPS
called/VBN
the/DT
Burgess/NNP
Shale/NNP
./.
Here/RB
,/,
in/IN
an/DT
area/NN
smaller/JJR
than/IN
a/DT
city/NN
block/NN
,/,
lay/VBD
buried/VBN
traces/NNS
of/IN
countless/JJ
weird/JJ
creatures/NNS
that/WDT
had/VBD
frolicked/VBN
more/RBR
than/IN
500/CD
million/CD
years/NNS
ago/RB
--/:
creatures/NNS
whose/WP$
anatomical/JJ
variety/NN
far/RB
exceeded/VBD
what/WP
can/MD
be/VB
found/VBN
in/IN
all/PDT
the/DT
world/NN
's/POS
oceans/NNS
today/NN
./.
Such/PDT
an/DT
embarrassment/NN
of/IN
riches/NNS
was/VBD
inconceivable/JJ
to/TO
the/DT
man/NN
who/WP
discovered/VBD
the/DT
Burgess/NNP
Shale/NNP
,/,
one/CD
Charles/NNP
Doolittle/NNP
Walcott/NNP
./.
The/DT
received/JJ
Darwinian/JJ
wisdom/NN
of/IN
the/DT
day/NN
said/VBD
that/IN
animals/NNS
living/VBG
so/RB
long/RB
ago/RB
must/MD
be/VB
simple/JJ
in/IN
design/NN
,/,
limited/JJ
in/IN
scope/NN
and/CC
ancestral/JJ
to/TO
contemporary/JJ
species/NNS
./.
Accordingly/RB
,/,
the/DT
hidebound/JJ
traditionalist/NN
reconstructed/VBD
hypothetical/JJ
organisms/NNS
from/IN
the/DT
Burgess/NNP
fossils/NNS
in/IN
such/PDT
a/DT
way/NN
that/IN
they/PRP
could/MD
be/VB
shoehorned/VBN
into/IN
familiar/JJ
categories/NNS
./.
It/PRP
was/VBD
not/RB
until/IN
the/DT
early/JJ
1970s/CD
that/IN
Cambridge/NNP
Prof./NNP
Harry/NNP
Whittington/NNP
and/CC
two/CD
sharp/JJ
graduate/JJ
students/NNS
began/VBD
to/TO
publish/VB
a/DT
reinterpretation/NN
of/IN
the/DT
Burgess/NNP
Shale/NNP
./.
By/IN
making/VBG
clever/JJ
inferences/NNS
about/IN
how/WRB
the/DT
squashed/JJ
and/CC
distorted/JJ
fossil/NN
remains/NNS
corresponded/VBD
to/TO
three-dimensional/JJ
structures/NNS
,/,
this/DT
trio/NN
was/VBD
able/JJ
to/TO
piece/VB
together/RB
a/DT
series/NN
of/IN
wondrous/JJ
beasties/NNS
quite/RB
unlike/IN
anything/NN
currently/RB
on/IN
the/DT
planet/NN
./.
One/CD
was/VBD
so/RB
fantastic/JJ
in/IN
appearance/NN
,/,
it/PRP
was/VBD
dubbed/VBN
Hallucigenia/NNP
./.
Would/MD
that/IN
Mr./NNP
Gould/NNP
's/POS
minute/JJ
descriptions/NNS
of/IN
these/DT
creatures/NNS
was/VBD
always/RB
so/RB
colorful/JJ
./.
A/DT
good/JJ
deal/NN
of/IN
the/DT
book/NN
is/VBZ
boring/JJ
,/,
particularly/RB
the/DT
endless/JJ
allusions/NNS
to/TO
high/JJ
and/CC
pop/JJ
culture/NN
and/CC
the/DT
frequent/JJ
jokes/NNS
festooning/VBG
the/DT
text/NN
./.
These/DT
turns/NNS
do/VBP
not/RB
provide/VB
sufficient/JJ
relief/NN
from/IN
sentences/NNS
like/IN
,/,
``/``
Most/JJS
modern/JJ
chelicerates/NNS
have/VBP
six/CD
uniramous/JJ
appendages/NNS
on/IN
the/DT
prosoma/NN
./.
''/''
Interest/NN
picks/VBZ
up/RP
,/,
though/RB
,/,
when/WRB
Mr./NNP
Gould/NNP
gets/VBZ
around/IN
to/TO
discussing/VBG
the/DT
meaning/NN
of/IN
the/DT
Burgess/NNP
oddities/NNS
for/IN
the/DT
theory/NN
of/IN
evolution/NN
./.
Not/RB
long/RB
after/IN
the/DT
appearance/NN
of/IN
life/NN
,/,
evidently/RB
,/,
there/EX
was/VBD
an/DT
explosive/JJ
proliferation/NN
in/IN
the/DT
number/NN
of/IN
animal/NN
designs/NNS
seen/VBN
on/IN
the/DT
earth/NN
./.
The/DT
vast/JJ
majority/NN
of/IN
them/PRP
,/,
however/RB
,/,
were/VBD
wiped/VBN
out/RP
by/IN
a/DT
succession/NN
of/IN
environmental/JJ
upheavals/NNS
that/WDT
were/VBD
too/RB
sudden/JJ
and/CC
catastrophic/JJ
for/IN
the/DT
normal/JJ
rules/NNS
of/IN
natural/JJ
selection/NN
to/TO
operate/VB
./.
Consequently/RB
,/,
the/DT
winnowing/NN
process/NN
was/VBD
like/IN
a/DT
lottery/NN
``/``
in/IN
which/WDT
each/DT
group/NN
a/DT
ticket/NN
unrelated/JJ
to/TO
its/PRP$
anatomical/JJ
virtues/NNS
./.
''/''
So/RB
much/JJ
for/IN
survival/NN
of/IN
the/DT
fittest/JJS
./.
So/RB
much/JJ
,/,
too/RB
,/,
for/IN
the/DT
notion/NN
that/IN
we/PRP
humans/NNS
triumphed/VBD
in/IN
the/DT
Darwinian/JJ
struggle/NN
by/IN
evolving/VBG
big/JJ
brains/NNS
./.
Our/PRP$
mammalian/JJ
forerunners/NNS
lucked/VBD
out/RP
through/IN
the/DT
extraterrestrial/JJ
impact/NN
that/WDT
did/VBD
in/IN
the/DT
dinosaurs/NNS
because/IN
they/PRP
were/VBD
small/JJ
,/,
not/RB
smart/JJ
./.
If/IN
anyone/NN
has/VBZ
difficulty/NN
imagining/VBG
a/DT
world/NN
in/IN
which/WDT
history/NN
went/VBD
merrily/RB
on/RB
without/IN
us/PRP
,/,
Mr./NNP
Gould/NNP
sketches/VBZ
several/JJ
./.
In/IN
one/CD
,/,
birds/NNS
are/VBP
the/DT
dominant/JJ
carnivores/NNS
;/:
in/IN
another/DT
the/DT
seas/NNS
abound/VBP
with/IN
``/``
little/JJ
penises/NNS
./.
''/''
Back/RB
when/WRB
the/DT
Burgess/NNP
fauna/NNS
were/VBD
flourishing/VBG
,/,
it/PRP
seems/VBZ
,/,
human/JJ
evolutionary/JJ
hopes/NNS
hung/VBD
on/IN
the/DT
survival/NN
of/IN
a/DT
little/JJ
worm/NN
with/IN
a/DT
backbone/NN
called/VBN
Pikaia/NNP
./.
Mr./NNP
Gould/NNP
finds/VBZ
this/DT
oddly/RB
exhilarating/JJ
;/:
like/IN
an/DT
existentialist/NN
of/IN
old/JJ
,/,
he/PRP
views/VBZ
our/PRP$
contingency/NN
as/IN
``/``
a/DT
source/NN
of/IN
both/DT
freedom/NN
and/CC
consequent/JJ
moral/JJ
responsibility/NN
./.
''/''
I/PRP
,/,
by/IN
contrast/NN
,/,
can/MD
not/RB
help/VB
feeling/NN
that/IN
if/IN
some/DT
other/JJ
curiosity/NN
from/IN
the/DT
Burgess/NNP
Shale/NNP
had/VBD
survived/VBN
instead/RB
,/,
beings/NNS
at/IN
once/RB
wiser/JJR
and/CC
less/RBR
boorish/JJ
than/IN
Homo/NN
sapiens/JJ
might/MD
have/VB
eventually/RB
gained/VBN
earthly/JJ
dominion/NN
./.
But/CC
even/RB
if/IN
no/DT
conscious/JJ
life/NN
had/VBD
evolved/VBN
here/RB
at/IN
all/DT
,/,
the/DT
universe/NN
is/VBZ
a/DT
big/JJ
place/NN
,/,
and/CC
given/VBN
the/DT
right/JJ
conditions/NNS
,/,
sympathetic/JJ
to/TO
creating/VBG
some/DT
form/NN
of/IN
life/NN
./.
Surely/RB
at/IN
some/DT
other/JJ
cosmic/JJ
address/NN
a/DT
Gouldoid/JJ
creature/NN
would/MD
have/VB
risen/VBN
out/IN
of/IN
the/DT
ooze/NN
to/TO
explain/VB
why/WRB
,/,
paleontologically/RB
speaking/VBG
,/,
``/``
it/PRP
is/VBZ
,/,
indeed/RB
,/,
a/DT
wonderful/JJ
life/NN
./.
''/''
Mr./NNP
Holt/NNP
is/VBZ
a/DT
columnist/NN
for/IN
the/DT
Literary/NNP
Review/NNP
in/IN
London/NNP
./.
The/DT
Justice/NNP
Department/NNP
scrambled/VBD
to/TO
play/VB
down/RP
the/DT
significance/NN
of/IN
its/PRP$
new/JJ
guidelines/NNS
concerning/VBG
prosecutions/NNS
under/IN
the/DT
federal/JJ
racketeering/NN
law/NN
./.
The/DT
guidelines/NNS
were/VBD
distributed/VBN
to/TO
U.S./NNP
attorneys/NNS
last/JJ
summer/NN
but/CC
were/VBD
disclosed/VBN
for/IN
the/DT
first/JJ
time/NN
by/IN
press/NN
reports/NNS
this/DT
week/NN
./.
They/PRP
discourage/VBP
prosecutors/NNS
,/,
under/IN
certain/JJ
circumstances/NNS
,/,
from/IN
seeking/VBG
court/NN
orders/NNS
seizing/VBG
the/DT
assets/NNS
of/IN
racketeering/NN
defendants/NNS
prior/RB
to/TO
trial/NN
./.
But/CC
David/NNP
Runkel/NNP
,/,
chief/JJ
Justice/NNP
Department/NNP
spokesman/NN
,/,
said/VBD
the/DT
guidelines/NNS
``/``
are/VBP
a/DT
codification/NN
and/CC
a/DT
clarification/NN
far/RB
more/RBR
than/IN
a/DT
new/JJ
direction/NN
./.
''/''
Use/NNP
of/IN
the/DT
Racketeer/NNP
Influenced/NNP
and/CC
Corrupt/NNP
Organizations/NNP
law/NN
against/IN
white-collar/JJ
defendants/NNS
,/,
as/IN
opposed/VBN
to/TO
alleged/JJ
organized-crime/NN
figures/NNS
,/,
has/VBZ
come/VBN
under/IN
attack/NN
from/IN
some/DT
defense/NN
lawyers/NNS
and/CC
legal/JJ
scholars/NNS
./.
Critics/NNS
have/VBP
complained/VBN
that/IN
the/DT
law/NN
unfairly/RB
strips/VBZ
defendants/NNS
of/IN
assets/NNS
before/IN
a/DT
jury/NN
determines/VBZ
they/PRP
have/VBP
committed/VBN
a/DT
crime/NN
and/CC
that/IN
aggressive/JJ
use/NN
of/IN
the/DT
forfeiture/NN
provisions/NNS
can/MD
ruin/VB
corporate/JJ
defendants/NNS
or/CC
force/VB
them/PRP
into/IN
unfavorable/JJ
plea/NN
bargains/NNS
./.
In/IN
the/DT
new/JJ
guidelines/NNS
,/,
the/DT
Justice/NNP
Department/NNP
says/VBZ
that/IN
in/IN
attempting/VBG
to/TO
freeze/VB
disputed/JJ
assets/NNS
before/IN
trial/NN
,/,
``/``
the/DT
government/NN
will/MD
not/RB
seek/VB
to/TO
disrupt/VB
the/DT
normal/JJ
,/,
legitimate/JJ
business/NN
activities/NNS
of/IN
the/DT
defendant/NN
''/''
and/CC
``/``
will/MD
not/RB
seek/VB
.../:
to/TO
take/VB
from/IN
third/JJ
parties/NNS
assets/NNS
legitimately/RB
transferred/VBN
to/TO
them/PRP
./.
''/''
The/DT
guidelines/NNS
also/RB
state/VBP
,/,
``/``
The/DT
government/NN
's/POS
policy/NN
is/VBZ
not/RB
to/TO
seek/VB
the/DT
fullest/JJS
forfeiture/NN
permissible/JJ
under/IN
the/DT
law/NN
where/WRB
that/DT
forfeiture/NN
would/MD
be/VB
disproportionate/JJ
to/TO
the/DT
defendant/NN
's/POS
crime/NN
./.
''/''
Another/DT
provision/NN
clarifies/VBZ
certain/JJ
limits/NNS
on/IN
when/WRB
prosecutors/NNS
may/MD
use/VB
tax-fraud/NN
charges/NNS
as/IN
a/DT
basis/NN
for/IN
bringing/VBG
a/DT
racketeering/NN
case/NN
./.
Mr./NNP
Runkel/NNP
declined/VBD
to/TO
speculate/VB
on/IN
whether/IN
the/DT
guidelines/NNS
would/MD
curb/VB
racketeering/NN
prosecutions/NNS
against/IN
corporate/JJ
defendants/NNS
./.
``/``
The/DT
impact/NN
,/,
if/IN
there/EX
is/VBZ
any/DT
,/,
will/MD
be/VB
impossible/JJ
to/TO
judge/VB
ahead/RB
of/IN
time/NN
because/IN
the/DT
decision/NN
whether/IN
to/TO
use/VB
{/(
racketeering/NN
charges/NNS
individual/JJ
cases/NNS
''/''
by/IN
Justice/NNP
Department/NNP
officials/NNS
in/IN
Washington/NNP
,/,
he/PRP
said/VBD
./.
In/IN
a/DT
memorandum/NN
describing/VBG
the/DT
guidelines/NNS
,/,
Assistant/NNP
Attorney/NNP
General/NNP
Edward/NNP
Dennis/NNP
Jr./NNP
said/VBD
that/IN
government/NN
efforts/NNS
to/TO
freeze/VB
defendants/NNS
'/POS
assets/NNS
pending/VBG
racketeering/NN
prosecutions/NNS
``/``
have/VBP
been/VBN
the/DT
subject/NN
of/IN
considerable/JJ
criticism/NN
in/IN
the/DT
press/NN
./.
''/''
But/CC
Mr./NNP
Runkel/NNP
said/VBD
the/DT
government/NN
is/VBZ
n't/RB
``/``
backing/VBG
off/RP
on/IN
these/DT
kinds/NNS
of/IN
matters/NNS
at/IN
all/DT
./.
''/''
California/NNP
legislators/NNS
,/,
searching/VBG
for/IN
ways/NNS
to/TO
pay/VB
for/IN
the/DT
$/$
4/CD
billion/CD
to/TO
$/$
6/CD
billion/CD
in/IN
damages/NNS
from/IN
last/JJ
week/NN
's/POS
earthquake/NN
,/,
are/VBP
laying/VBG
the/DT
groundwork/NN
for/IN
a/DT
temporary/JJ
increase/NN
in/IN
the/DT
state/NN
's/POS
sales/NNS
tax/NN
./.
The/DT
talk/NN
of/IN
a/DT
sales/NNS
tax/NN
rise/NN
follows/VBZ
a/DT
rebuff/NN
from/IN
Congress/NNP
on/IN
the/DT
question/NN
of/IN
how/WRB
much/JJ
the/DT
federal/JJ
government/NN
is/VBZ
willing/JJ
to/TO
spend/VB
to/TO
aid/NN
in/IN
California/NNP
's/POS
earthquake/NN
relief/NN
efforts/NNS
./.
The/DT
state/NN
had/VBD
sought/VBN
as/RB
much/JJ
as/IN
$/$
4.1/CD
billion/CD
in/IN
relief/NN
,/,
but/CC
yesterday/NN
the/DT
House/NNP
approved/VBD
a/DT
more/RBR
general/JJ
scaled-back/JJ
measure/NN
calling/VBG
for/IN
$/$
2.85/CD
billion/CD
in/IN
aid/NN
,/,
the/DT
bulk/NN
of/IN
which/WDT
would/MD
go/VB
to/TO
California/NNP
,/,
with/IN
an/DT
unspecified/JJ
amount/NN
going/VBG
to/TO
regions/NNS
affected/VBN
by/IN
Hurricane/NNP
Hugo/NNP
./.
That/DT
leaves/VBZ
the/DT
state/NN
roughly/RB
$/$
2/CD
billion/CD
to/TO
$/$
4/CD
billion/CD
short/JJ
./.
A/DT
sales/NNS
tax/NN
increase/NN
appears/VBZ
to/TO
be/VB
the/DT
fastest/JJS
and/CC
easiest/JJS
to/TO
raise/VB
funds/NNS
in/IN
a/DT
hurry/NN
./.
According/VBG
to/TO
the/DT
state/NN
department/NN
of/IN
finance/NN
,/,
a/DT
one-penny/JJ
increase/NN
in/IN
the/DT
state/NN
's/POS
six-cent/JJ
per/IN
dollar/NN
sales/NNS
tax/NN
could/MD
raise/VB
$/$
3/CD
billion/CD
./.
Willie/NNP
Brown/NNP
,/,
speaker/NN
of/IN
California/NNP
's/POS
Assembly/NN
,/,
said/VBD
that/IN
Gov./NNP
George/NNP
Deukmejian/NNP
has/VBZ
agreed/VBN
to/TO
schedule/VB
a/DT
special/JJ
session/NN
of/IN
the/DT
legislature/NN
within/IN
two/CD
weeks/NNS
./.
California/NNP
's/POS
so-called/JJ
Gann/NNP
limit/NN
effectively/RB
prevents/VBZ
the/DT
state/NN
from/IN
spending/VBG
new/JJ
tax/NN
money/NN
and/CC
so/RB
drastically/RB
limits/VBZ
its/PRP$
options/NNS
in/IN
an/DT
emergency/NN
./.
Both/CC
Mr./NNP
Brown/NNP
,/,
the/DT
state/NN
's/VBZ
most/RBS
influential/JJ
legislator/NN
,/,
and/CC
Gov./NNP
Deukmejian/NNP
favor/VBP
a/DT
temporary/JJ
sales/NNS
tax/NN
increase/NN
--/:
should/MD
more/JJR
money/NN
be/VB
needed/VBN
than/IN
the/DT
state/NN
can/MD
raise/VB
from/IN
existing/JJ
sources/NNS
and/CC
the/DT
federal/JJ
government/NN
./.
According/VBG
to/TO
a/DT
spokesman/NN
,/,
the/DT
governor/NN
is/VBZ
also/RB
studying/VBG
the/DT
possibility/NN
of/IN
raising/VBG
state/NN
gasoline/NN
taxes/NNS
./.
Mr./NNP
Brown/NNP
,/,
meanwhile/RB
,/,
believes/VBZ
``/``
only/RB
one/CD
tax/NN
will/MD
be/VB
feasible/JJ
,/,
and/CC
it/PRP
will/MD
be/VB
a/DT
one-penny/JJ
sales/NNS
tax/NN
increase/NN
,/,
''/''
said/VBD
Chuck/NNP
Dalldorf/NNP
,/,
an/DT
aide/NN
./.
One/CD
immediate/JJ
source/NN
of/IN
money/NN
is/VBZ
an/DT
emergency/NN
fund/NN
set/VBD
up/RP
by/IN
Gov./NNP
Deukmejian/NNP
./.
The/DT
fund/NN
has/VBZ
about/RB
$/$
1/CD
billion/CD
and/CC
is/VBZ
set/VBN
up/RP
to/TO
handle/VB
``/``
precisely/RB
the/DT
kind/NN
of/IN
emergency/NN
''/''
the/DT
state/NN
faces/VBZ
,/,
said/VBD
Tom/NNP
Beermann/NNP
,/,
the/DT
Governor/NNP
's/POS
deputy/JJ
press/NN
secretary/NN
./.
But/CC
the/DT
fund/NN
's/POS
size/NN
is/VBZ
disputed/VBN
by/IN
Mr./NNP
Brown/NNP
's/POS
office/NN
,/,
which/WDT
estimates/VBZ
the/DT
fund/NN
holds/VBZ
from/IN
$/$
630/CD
million/CD
to/TO
$/$
800/CD
million/CD
./.
Moreover/RB
,/,
an/DT
aide/NN
to/TO
Mr./NNP
Brown/NNP
said/VBD
Gov./NNP
Deukmejian/NNP
``/``
has/VBZ
expressed/VBN
a/DT
desire/NN
not/RB
to/TO
spend/VB
all/PDT
the/DT
reserve/NN
on/IN
this/DT
./.
''/''
To/TO
push/VB
through/RP
a/DT
sales/NNS
tax/NN
increase/NN
,/,
however/RB
,/,
the/DT
state/NN
will/MD
have/VB
to/TO
suspend/VB
the/DT
Gann/NNP
limit/NN
,/,
citing/VBG
an/DT
emergency/NN
./.
And/CC
then/RB
it/PRP
will/MD
be/VB
required/VBN
to/TO
lower/VB
taxes/NNS
by/IN
a/DT
corresponding/JJ
amount/NN
during/IN
a/DT
three-year/JJ
period/NN
after/IN
the/DT
temporary/JJ
tax/NN
increase/NN
ends/VBZ
,/,
said/VBD
Cindy/NNP
Katz/NNP
,/,
assistant/JJ
director/NN
of/IN
the/DT
state/NN
department/NN
of/IN
finance/NN
./.
A/DT
sales/NNS
tax/NN
increase/NN
would/MD
require/VB
two-thirds/NNS
approval/NN
in/IN
both/DT
houses/NNS
of/IN
the/DT
state/NN
's/POS
legislature/NN
./.
But/CC
observers/NNS
expect/VBP
broad/JJ
support/NN
./.
``/``
If/IN
there/EX
's/VBZ
an/DT
emergency/NN
and/CC
there/EX
are/VBP
n't/RB
sufficient/JJ
funds/NNS
from/IN
elsewhere/RB
,/,
I/PRP
think/VBP
the/DT
attitude/NN
will/MD
be/VB
supportive/JJ
,/,
''/''
said/VBD
Kirk/NNP
West/NNP
,/,
president/NN
of/IN
the/DT
California/NNP
Chamber/NNP
of/IN
Commerce/NNP
./.
But/CC
others/NNS
think/VBP
property/NN
owners/NNS
ought/MD
to/TO
pay/VB
a/DT
higher/JJR
portion/NN
of/IN
the/DT
state/NN
's/POS
earthquake/NN
relief/NN
tab/NN
./.
Since/IN
the/DT
late/JJ
1970s/NNS
,/,
California/NNP
property/NN
owners/NNS
have/VBP
benefited/VBN
from/IN
a/DT
tax/NN
rollback/NN
as/IN
a/DT
result/NN
of/IN
a/DT
state/NN
ballot/NN
initiative/NN
known/VBN
as/IN
Proposition/NNP
13/CD
./.
The/DT
state/NN
could/MD
also/RB
increase/VB
gasoline/NN
taxes/NNS
;/:
every/DT
one/CD
penny/NN
increase/NN
in/IN
the/DT
tax/NN
would/MD
yield/VB
$/$
11/CD
million/CD
a/DT
month/NN
./.
But/CC
Gov./NNP
Deukmejian/NNP
and/CC
others/NNS
are/VBP
reluctant/JJ
to/TO
do/VB
anything/NN
to/TO
harm/VB
the/DT
state/NN
's/POS
chances/NNS
of/IN
sharply/RB
raising/VBG
gasoline/NN
taxes/NNS
on/IN
a/DT
permanent/JJ
basis/NN
./.
To/TO
raise/VB
more/JJR
highway/NN
funds/NNS
,/,
a/DT
measure/NN
to/TO
double/VB
the/DT
state/NN
's/POS
nine-cent/JJ
a/DT
gallon/NN
tax/NN
over/IN
five/CD
years/NNS
is/VBZ
set/VBN
to/TO
appear/VB
on/IN
the/DT
state/NN
's/POS
June/NNP
election/NN
ballot/NN
./.
But/CC
some/DT
fear/VBP
imposing/VBG
a/DT
temporary/JJ
gasoline/NN
tax/NN
increase/NN
in/IN
the/DT
meantime/NN
could/MD
undercut/VB
support/NN
among/IN
voters/NNS
for/IN
the/DT
measure/NN
./.
Not/RB
everyone/NN
is/VBZ
convinced/VBN|JJ
the/DT
state/NN
must/MD
raise/VB
new/JJ
revenue/NN
to/TO
meet/VB
its/PRP$
earthquake/NN
needs/NNS
./.
``/``
It/PRP
's/VBZ
possible/JJ
,/,
though/IN
not/RB
probable/JJ
,/,
''/''
that/IN
the/DT
state/NN
could/MD
get/VB
by/RP
with/IN
its/PRP$
existing/JJ
resources/NNS
and/CC
federal/JJ
help/NN
,/,
said/VBD
Quentin/NNP
Kopp/NNP
,/,
chairman/NN
of/IN
the/DT
state/NN
senate/NN
's/POS
transportation/NN
committee/NN
./.
Separately/RB
,/,
two/CD
men/NNS
injured/VBN
in/IN
last/JJ
week/NN
's/POS
earthquake-triggered/JJ
freeway/NN
collapse/NN
in/IN
Oakland/NNP
began/VBD
a/DT
legal/JJ
battle/NN
against/IN
the/DT
state/NN
over/IN
whether/IN
officials/NNS
adequately/RB
heeded/VBD
warnings/NNS
about/IN
the/DT
structure/NN
's/POS
safety/NN
./.
The/DT
claims/NNS
,/,
which/WDT
were/VBD
filed/VBN
with/IN
the/DT
State/NNP
Board/NNP
of/IN
Control/NNP
but/CC
will/MD
probably/RB
end/VB
up/RP
in/IN
court/NN
,/,
are/VBP
the/DT
first/RB
arising/VBG
out/IN
of/IN
the/DT
collapse/NN
of/IN
the/DT
so-called/JJ
Cypress/NNP
structure/NN
viaduct/NN
./.
The/DT
men/NNS
can/MD
defeat/VB
immunities/NNS
that/IN
states/NNS
often/RB
assert/VBP
in/IN
court/NN
by/IN
showing/VBG
that/IN
officials/NNS
knew/VBD
or/CC
should/MD
have/VB
known/VBN
that/DT
design/NN
of/IN
the/DT
structure/NN
was/VBD
defective/JJ
and/CC
that/IN
they/PRP
failed/VBD
to/TO
make/VB
reasonable/JJ
changes/NNS
./.
A/DT
Board/NNP
of/IN
Control/NNP
spokesman/NN
said/VBD
the/DT
board/NN
had/VBD
not/RB
seen/VBN
the/DT
claim/NN
and/CC
declined/VBD
to/TO
comment/VB
./.
The/DT
following/JJ
were/VBD
among/IN
yesterday/NN
's/POS
offerings/NNS
and/CC
pricings/NNS
in/IN
the/DT
U.S./NNP
and/CC
non-U.S./JJ
capital/NN
markets/NNS
,/,
with/IN
terms/NNS
and/CC
syndicate/NN
manager/NN
,/,
as/IN
compiled/VBN
by/IN
Dow/NNP
Jones/NNP
Capital/NNP
Markets/NNP
Report/NNP
:/:
Exxon/NNP
Capital/NNP
Corp./NNP
--/:
$/$
200/CD
million/CD
of/IN
8/CD
1\/4/CD
%/NN
notes/NNS
due/JJ
Nov./NNP
1/CD
,/,
1999/CD
,/,
priced/VBN
at/IN
99.60/CD
to/TO
yield/VB
8.31/CD
%/NN
./.
The/DT
notes/NNS
,/,
which/WDT
are/VBP
noncallable/JJ
,/,
were/VBD
priced/VBN
at/IN
a/DT
spread/NN
of/IN
45/CD
basis/NN
points/NNS
above/IN
the/DT
Treasury/NNP
's/POS
10-year/JJ
note/NN
./.
Rated/VBN
triple-A/JJ
by/IN
both/DT
Moody/NNP
's/POS
Investors/NNP
Service/NNP
Inc./NNP
and/CC
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NNP
,/,
the/DT
issue/NN
will/MD
be/VB
sold/VBN
through/IN
Salomon/NNP
Brothers/NNP
Inc/NNP
./.
Citicorp/NNP
--/:
$/$
200/CD
million/CD
of/IN
8/CD
3\/4/CD
%/NN
notes/NNS
due/JJ
Nov./NNP
1/CD
,/,
1996/CD
,/,
priced/VBN
at/IN
99.64/CD
to/TO
yield/VB
8.82/CD
%/NN
./.
The/DT
noncallable/JJ
issue/NN
was/VBD
priced/VBN
at/IN
a/DT
spread/NN
of/IN
98/CD
basis/NN
points/NNS
above/IN
the/DT
Treasury/NNP
's/POS
seven-year/JJ
note/NN
./.
Rated/VBN
single-A-1/JJ
by/IN
Moody/NNP
's/POS
and/CC
double-A/JJ
by/IN
S&P/NNP
,/,
the/DT
issue/NN
will/MD
be/VB
sold/VBN
through/IN
Salomon/NNP
Brothers/NNP
./.
Boatmen/NNP
's/POS
Bancshares/NNP
Inc./NNP
--/:
$/$
150/CD
million/CD
of/IN
9/CD
1\/4/CD
%/NN
subordinated/VBN
notes/NNS
due/JJ
Nov./NNP
1/CD
,/,
2001/CD
,/,
priced/VBN
at/IN
99.821/CD
to/TO
yield/VB
9.275/CD
%/NN
./.
The/DT
noncallable/JJ
issue/NN
was/VBD
priced/VBN
at/IN
a/DT
spread/NN
of/IN
140/CD
basis/NN
points/NNS
above/IN
the/DT
Treasury/NNP
's/POS
10-year/JJ
note/NN
./.
Rated/VBN
single-A-3/JJ
by/IN
Moody/NNP
's/POS
and/CC
single-A-minus/JJ
by/IN
S&P/NNP
,/,
the/DT
issue/NN
will/MD
be/VB
sold/VBN
through/IN
underwriters/NNS
led/VBN
by/IN
Morgan/NNP
Stanley/NNP
&/CC
Co/NNP
./.
Xerox/NNP
Corp./NNP
--/:
$/$
150/CD
million/CD
of/IN
8/CD
3\/4/CD
%/NN
notes/NNS
due/JJ
Nov./NNP
1/CD
,/,
1995/CD
,/,
priced/VBN
at/IN
99.555/CD
to/TO
yield/VB
8.85/CD
%/NN
./.
The/DT
noncallable/JJ
issue/NN
was/VBD
priced/VBN
to/TO
yield/VB
105/CD
basis/NN
points/NNS
above/IN
the/DT
Treasury/NNP
's/POS
fiveyear/JJ
note/NN
./.
Rated/VBN
single-A-2/JJ
by/IN
Moody/NNP
's/POS
and/CC
single-A-plus/JJ
by/IN
S&P/NNP
,/,
the/DT
issue/NN
will/MD
be/VB
sold/VBN
through/IN
underwriters/NNS
led/VBN
by/IN
Salomon/NNP
Brothers/NNP
./.
American/NNP
General/NNP
Finance/NNP
Corp./NNP
--/:
$/$
150/CD
million/CD
of/IN
8.45/CD
%/NN
notes/NNS
due/JJ
Oct./NNP
15/CD
,/,
2009/CD
,/,
through/IN
Bear/NNP
,/,
Stearns/NNP
&/CC
Co./NNP
,/,
being/VBG
offered/VBN
at/IN
a/DT
price/NN
of/IN
99.661/CD
to/TO
yield/VB
8.50/CD
%/NN
./.
The/DT
noncallable/JJ
issue/NN
,/,
which/WDT
has/VBZ
a/DT
one-time/JJ
put/NN
Oct./NNP
15/CD
,/,
1999/CD
,/,
was/VBD
priced/VBN
at/IN
a/DT
spread/NN
of/IN
66/CD
basis/NN
points/NNS
above/IN
the/DT
Treasury/NNP
's/POS
10-year/JJ
note/NN
./.
The/DT
issue/NN
is/VBZ
rated/VBN
single-A-1/JJ
by/IN
Moody/NNP
's/POS
and/CC
single-A-plus/JJ
by/IN
S&P/NNP
./.
Baltimore/NNP
Gas/NNP
&/CC
Electric/NNP
Co./NNP
--/:
$/$
100/CD
million/CD
of/IN
first/JJ
and/CC
refunding/JJ
mortgage/NN
bonds/NNS
,/,
due/JJ
Oct./NNP
15/CD
,/,
1999/CD
,/,
through/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
,/,
offered/VBN
at/IN
par/NN
to/TO
yield/VB
8.40/CD
%/NN
./.
The/DT
noncallable/JJ
issue/NN
is/VBZ
rated/VBN
double-A-3/JJ
by/IN
Moody/NNP
's/POS
and/CC
double-A-minus/JJ
by/IN
S&P/NNP
./.
It/PRP
was/VBD
priced/VBN
at/IN
a/DT
spread/NN
of/IN
55/CD
basis/NN
points/NNS
above/IN
the/DT
Treasury/NNP
's/POS
10-year/JJ
note/NN
./.
Massachusetts/NNP
--/:
$/$
230/CD
million/CD
of/IN
general/JJ
obligation/NN
bonds/NNS
,/,
consolidated/JJ
loan/NN
of/IN
1989/CD
,/,
Series/NNP
D/NNP
,/,
due/JJ
1990-2009/CD
,/,
through/IN
a/DT
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
group/NN
./.
The/DT
insured/JJ
bonds/NNS
,/,
rated/VBN
triple-A/JJ
by/IN
Moody/NNP
's/POS
and/CC
S&P/NN
,/,
were/VBD
priced/VBN
to/TO
yield/VB
from/IN
6.00/CD
%/NN
in/IN
1990/CD
to/TO
7.20/CD
%/NN
in/IN
2009/CD
./.
Broward/NNP
County/NNP
School/NNP
District/NNP
,/,
Fla./NNP
--/:
$/$
185/CD
million/CD
of/IN
school/NN
district/NN
general/JJ
obligation/NN
bonds/NNS
,/,
Series/NNP
1989/CD
,/,
due/JJ
1991-1999/CD
and/CC
2008/CD
,/,
tentatively/RB
priced/VBN
by/IN
a/DT
First/NNP
Boston/NNP
Corp./NNP
group/NN
to/TO
yield/VB
from/IN
6.20/CD
%/NN
in/IN
1991/CD
to/TO
7.30/CD
%/NN
in/IN
2008/CD
./.
There/EX
are/VBP
$/$
120.7/CD
million/CD
of/IN
7/CD
1\/8/CD
%/NN
term/NN
bonds/NNS
due/JJ
2008/CD
,/,
priced/VBN
to/TO
yield/VB
7.30/CD
%/NN
./.
Serial/JJ
bonds/NNS
are/VBP
priced/VBN
to/TO
yield/VB
to/TO
7/CD
%/NN
in/IN
1999/CD
./.
The/DT
bonds/NNS
are/VBP
rated/VBN
single-A-1/JJ
by/IN
Moody/NNP
's/POS
and/CC
double-A-minus/JJ
by/IN
S&P/NNP
./.
Culver/NNP
City/NNP
Redevelopment/NNP
Financing/NNP
Authority/NNP
,/,
Calif./NNP
--/:
$/$
145/CD
million/CD
of/IN
revenue/NN
bonds/NNS
,/,
Series/NNP
1989/CD
,/,
tentatively/RB
priced/VBN
by/IN
a/DT
Stone/NNP
&/CC
Youngberg/NNP
group/NN
./.
The/DT
issue/NN
includes/VBZ
$/$
100/CD
million/CD
of/IN
insured/JJ
senior/JJ
lien/NN
bonds/NNS
./.
These/DT
consist/VBP
of/IN
current/JJ
interest/NN
bonds/NNS
due/JJ
1990-2002/CD
,/,
2010/CD
and/CC
2015/CD
,/,
and/CC
capital/NN
appreciation/NN
bonds/NNS
due/JJ
2003/CD
and/CC
2004/CD
,/,
tentatively/RB
priced/VBN
to/TO
yield/VB
from/IN
5.75/CD
%/NN
in/IN
1990/CD
to/TO
7.14/CD
%/NN
in/IN
2010/CD
./.
Bonds/NNS
due/JJ
2003/CD
,/,
2004/CD
and/CC
2015/CD
are/VBP
n't/RB
being/VBG
formally/RB
reoffered/VBN
./.
There/EX
are/VBP
also/RB
$/$
40/CD
million/CD
of/IN
uninsured/JJ
subordinate/JJ
lien/NN
bonds/NNS
,/,
due/JJ
Dec./NNP
1/CD
,/,
2008/CD
,/,
and/CC
Dec./NNP
1/CD
,/,
2015/CD
./.
There/EX
are/VBP
$/$
15,015,000/CD
of/IN
7/CD
1\/2/CD
%/NN
bonds/NNS
priced/VBN
at/IN
par/NN
and/CC
due/JJ
2008/CD
and/CC
$/$
24,985,000/CD
of/IN
7.6/CD
%/NN
bonds/NNS
priced/VBN
at/IN
par/NN
and/CC
due/JJ
2015/CD
./.
The/DT
insured/JJ
bonds/NNS
are/VBP
rated/VBN
triple-A/JJ
by/IN
Moody/NNP
's/POS
and/CC
S&P/NNP
./.
The/DT
uninsured/JJ
subordinate/JJ
lien/NN
bonds/NNS
are/VBP
n't/RB
rated/VBN
,/,
according/VBG
to/TO
the/DT
lead/JJ
underwriter/NN
./.
West/NNP
Virginia/NNP
Parkways/NNP
,/,
Economic/NNP
Development/NNP
and/CC
Tourism/NNP
Authority/NNP
--/:
$/$
143/CD
million/CD
of/IN
parkway/NN
revenue/NN
bonds/NNS
,/,
Series/NN
1989/CD
,/,
with/IN
current/JJ
interest/NN
bonds/NNS
due/JJ
1990-2002/CD
and/CC
2019/CD
and/CC
capital/NN
appreciation/NN
bonds/NNS
due/JJ
2003-2008/CD
,/,
tentatively/RB
priced/VBN
by/IN
a/DT
PaineWebber/NNP
Inc./NNP
group/NN
to/TO
yield/VB
from/IN
6/CD
%/NN
in/IN
1990/CD
to/TO
7.31/CD
%/NN
in/IN
2019/CD
./.
There/EX
are/VBP
$/$
86,525,000/CD
of/IN
7/CD
1\/8/CD
%/NN
bonds/NNS
priced/VBN
at/IN
97/CD
3\/4/CD
to/TO
yield/VB
7.31/CD
%/NN
in/IN
2019/CD
./.
Current/JJ
interest/NN
serial/NN
bonds/NNS
are/VBP
tentatively/RB
priced/VBN
to/TO
yield/VB
to/TO
7.05/CD
%/NN
in/IN
2002/CD
./.
Capital/NN
appreciation/NN
bonds/NNS
are/VBP
priced/VBN
to/TO
yield/VB
to/TO
maturity/NN
from/IN
7.10/CD
%/NN
in/IN
2003/CD
to/TO
7.25/CD
%/NN
in/IN
2007/CD
and/CC
2008/CD
./.
The/DT
bonds/NNS
are/VBP
insured/VBN
and/CC
rated/VBN
triple-A/JJ
by/IN
Moody/NNP
's/POS
and/CC
S&P/NNP
./.
Connecticut/NNP
Housing/NNP
Finance/NNP
Authority/NNP
--/:
$/$
132.8/CD
million/CD
of/IN
housing/NN
mortgage/NN
revenue/NN
bonds/NNS
priced/VBN
by/IN
a/DT
PaineWebber/NNP
Inc./NNP
group/NN
./.
The/DT
$/$
82.8/CD
million/CD
of/IN
Series/NNP
B/NNP
bonds/NNS
,/,
which/WDT
are/VBP
n't/RB
subject/JJ
to/TO
the/DT
alternative/JJ
minimum/JJ
tax/NN
,/,
were/VBD
priced/VBN
at/IN
par/NN
to/TO
yield/VB
from/IN
6.85/CD
%/NN
in/IN
2000/CD
to/TO
7.20/CD
%/NN
in/IN
2009/CD
./.
Meanwhile/RB
,/,
the/DT
$/$
50/CD
million/CD
of/IN
Series/NNP
C/NNP
bonds/NNS
,/,
which/WDT
are/VBP
suject/JJ
to/TO
the/DT
alternative/JJ
minimum/JJ
tax/NN
,/,
were/VBD
priced/VBN
at/IN
par/NN
to/TO
yield/VB
from/IN
6.25/CD
%/NN
in/IN
1990/CD
to/TO
7.10/CD
%/NN
to/TO
2000/CD
./.
The/DT
issue/NN
is/VBZ
expected/VBN
to/TO
receive/VB
a/DT
double-A/JJ
rating/NN
from/IN
Moody/NNP
's/POS
,/,
the/DT
underwriter/NN
said/VBD
./.
An/DT
S&P/NNP
rating/NN
of/IN
double-A-plus/JJ
has/VBZ
already/RB
been/VBN
confirmed/VBN
./.
Montgomery/NNP
County/NNP
,/,
Md./NNP
--/:
$/$
75/CD
million/CD
of/IN
general/JJ
obligation/NN
,/,
Series/NNP
B/NNP
,/,
consolidated/JJ
public/JJ
improvement/NN
bonds/NNS
of/IN
1989/CD
,/,
through/IN
a/DT
Manufacturers/NNP
Hanover/NNP
Trust/NNP
Co./NNP
group/NN
./.
The/DT
bonds/NNS
,/,
rated/VBN
triple-A/JJ
by/IN
Moody/NNP
's/POS
and/CC
S&P/NNP
,/,
were/VBD
priced/VBN
to/TO
yield/VB
from/IN
5.75/CD
%/NN
in/IN
1990/CD
to/TO
6.90/CD
%/NN
in/IN
2006/CD
to/TO
2009/CD
./.
Federal/NNP
Home/NNP
Loan/NNP
Mortgage/NNP
Corp./NNP
--/:
$/$
500/CD
million/CD
of/IN
Remic/NNP
mortgage/NN
securities/NNS
being/VBG
offered/VBN
by/IN
Prudential-Bache/NNP
Capital/NNP
Funding/NNP
Inc/NNP
./.
There/EX
were/VBD
no/DT
details/NNS
available/JJ
on/IN
the/DT
pricing/NN
of/IN
the/DT
issue/NN
,/,
Freddie/NNP
Mac/NNP
's/POS
Series/NNP
108/CD
./.
The/DT
issue/NN
is/VBZ
backed/VBN
by/IN
Freddie/NNP
Mac/NNP
8/CD
1\/2/CD
%/NN
securities/NNS
./.
Hanwa/NNP
Co/NNP
./.
Japan/NNP
Two-part/JJ
,/,
$/$
800/CD
million/CD
issue/NN
of/IN
bonds/NNS
due/JJ
Nov./NNP
9/CD
,/,
1994/CD
,/,
with/IN
equity-purchase/JJ
warrants/NNS
,/,
indicating/VBG
a/DT
4/CD
3\/8/CD
%/NN
coupon/NN
at/IN
par/NN
./.
European/JJ
portion/NN
of/IN
$/$
700/CD
million/CD
via/IN
Yamaichi/NNP
International/NNP
Europe/NNP
Ltd/NNP
./.
Asian/JJ
portion/NN
of/IN
$/$
100/CD
million/CD
via/IN
Yamatane/NNP
Securities/NNP
Europe/NNP
Ltd/NNP
./.
Each/DT
$/$
5,000/CD
bond/NN
carries/VBZ
one/CD
warrant/NN
,/,
exercisable/JJ
from/IN
Nov./NNP
28/CD
,/,
1989/CD
,/,
through/IN
Oct./NNP
26/CD
,/,
1994/CD
,/,
to/TO
buy/VB
shares/NNS
at/IN
an/DT
expected/JJ
premium/NN
of/IN
2/CD
1\/2/CD
%/NN
to/TO
the/DT
closing/NN
share/NN
price/NN
when/WRB
terms/NNS
are/VBP
fixed/VBN
Oct./NNP
26/CD
./.
Japan/NNP
Storage/NNP
Battery/NNP
Co./NNP
--/:
$/$
100/CD
million/CD
of/IN
bonds/NNS
due/JJ
Nov./NNP
9/CD
,/,
1993/CD
,/,
with/IN
equity-purchase/JJ
warrants/NNS
,/,
indicating/VBG
a/DT
3/CD
7\/8/CD
%/NN
coupon/NN
at/IN
par/NN
via/IN
Nikko/NNP
Securities/NNP
Co/NNP
./.
Europe/NNP
Ltd/NNP
./.
Guaranteed/VBN
by/IN
Mitsubishi/NNP
Bank/NNP
Ltd/NNP
./.
Each/DT
$/$
5,000/CD
bond/NN
carries/VBZ
one/CD
warrant/NN
,/,
exercisable/JJ
from/IN
Nov./NNP
27/CD
,/,
1989/CD
,/,
through/IN
Oct./NNP
26/CD
,/,
1993/CD
,/,
to/TO
buy/VB
shares/NNS
at/IN
an/DT
expected/JJ
premium/NN
of/IN
2/CD
1\/2/CD
%/NN
to/TO
the/DT
closing/NN
share/NN
price/NN
when/WRB
terms/NNS
are/VBP
fixed/VBN
Nov./NNP
1/CD
./.
Sanraku/NNP
Inc/NNP
./.
Japan/NNP
$/$
100/CD
million/CD
of/IN
bonds/NNS
due/JJ
Nov./NNP
9/CD
,/,
1993/CD
,/,
with/IN
equity-purchase/JJ
warrants/NNS
,/,
indicating/VBG
a/DT
3/CD
7\/8/CD
%/NN
coupon/NN
at/IN
par/NN
,/,
via/IN
Nomura/NNP
International/NNP
./.
Guaranteed/VBN
by/IN
Dai-Ichi/NNP
Kangyo/NNP
Bank/NNP
Ltd/NNP
./.
Each/DT
$/$
5,000/CD
bond/NN
carries/VBZ
one/CD
warrant/NN
,/,
exercisable/JJ
from/IN
Nov./NNP
21/CD
,/,
1989/CD
,/,
through/IN
Oct./NNP
19/CD
,/,
1993/CD
,/,
to/TO
buy/VB
shares/NNS
at/IN
an/DT
expected/JJ
premium/NN
of/IN
2/CD
1\/2/CD
%/NN
to/TO
the/DT
closing/NN
share/NN
price/NN
when/WRB
terms/NNS
are/VBP
fixed/VBN
Oct./NNP
31/CD
./.
Nippon/NNP
Signal/NNP
Co/NNP
./.
Japan/NNP
80/CD
million/CD
marks/NNS
of/IN
bonds/NNS
with/IN
equity-purchase/JJ
warrants/NNS
,/,
indicating/VBG
a/DT
1/CD
1\/2/CD
%/NN
coupon/NN
,/,
due/JJ
Nov./NNP
9/CD
,/,
1994/CD
,/,
and/CC
priced/VBN
at/IN
par/NN
,/,
via/IN
Commerzbank/NNP
./.
Guaranteed/VBN
by/IN
Fuji/NNP
Bank/NNP
./.
Each/DT
5,000/CD
mark/NN
bond/NN
carries/VBZ
one/CD
warrant/NN
and/CC
one/CD
certificate/NN
for/IN
four/CD
warrants/NNS
,/,
exercisable/JJ
from/IN
Dec./NNP
18/CD
,/,
1989/CD
,/,
to/TO
Oct./NNP
26/CD
,/,
1994/CD
,/,
to/TO
buy/VB
shares/NNS
at/IN
an/DT
expected/JJ
premium/NN
of/IN
2/CD
1\/2/CD
%/NN
above/IN
the/DT
closing/NN
share/NN
price/NN
when/WRB
prices/NNS
are/VBP
fixed/VBN
Oct./NNP
30/CD
./.
Miyoshi/NNP
Oil/NNP
&/CC
Fat/NNP
Co/NNP
./.
Japan/NNP
120/CD
million/CD
Swiss/NNP
francs/NNS
of/IN
privately/RB
placed/VBN
convertible/JJ
notes/NNS
due/JJ
Dec./NNP
31/CD
,/,
1993/CD
,/,
with/IN
a/DT
fixed/JJ
0.25/CD
%/NN
coupon/NN
at/IN
par/NN
,/,
via/IN
Union/NNP
Bank/NNP
of/IN
Switzerland/NNP
./.
Put/NN
option/NN
on/IN
Dec./NNP
31/CD
,/,
1991/CD
,/,
at/IN
a/DT
fixed/JJ
107/CD
to/TO
yield/VB
3.43/CD
%/NN
./.
Each/DT
50,000/CD
Swiss/JJ
franc/NN
bond/NN
convertible/NN
from/IN
Nov./NNP
28/CD
,/,
1989/CD
,/,
to/TO
Dec./NNP
20/CD
,/,
1993/CD
,/,
at/IN
a/DT
5/CD
%/NN
premium/NN
over/IN
closing/NN
share/NN
price/NN
Oct./NNP
30/CD
,/,
when/WRB
terms/NNS
are/VBP
scheduled/VBN
to/TO
be/VB
fixed/VBN
./.
Fokker/NNP
N.V/NNP
./.
Netherlands/NNPS
150/CD
million/CD
Swiss/JJ
francs/NNS
of/IN
convertible/JJ
bonds/NNS
due/JJ
Nov./NNP
15/CD
,/,
1997/CD
,/,
with/IN
a/DT
fixed/JJ
4/CD
%/NN
coupon/NN
at/IN
par/NN
via/IN
Union/NNP
Bank/NNP
of/IN
Switzerland/NNP
./.
Each/DT
5,000/CD
Swiss/JJ
franc/NN
bond/NN
convertible/JJ
from/IN
Jan./NNP
3/CD
,/,
1989/CD
,/,
to/TO
Oct./NNP
31/CD
,/,
1997/CD
./.
Fees/NNS
2/CD
1\/8/CD
./.
Sapporo/NNP
Lion/NNP
Ltd/NNP
./.
Japan/NNP
50/CD
million/CD
Swiss/NNP
francs/NNS
of/IN
privately/RB
placed/VBN
convertible/JJ
notes/NNS
due/JJ
Dec./NNP
31/CD
,/,
1994/CD
,/,
with/IN
a/DT
0.25/CD
%/NN
coupon/NN
at/IN
par/NN
,/,
via/IN
Yamaichi/NNP
Bank/NNP
Switzerland/NNP
Put/NN
option/NN
on/IN
Dec./NNP
31/CD
,/,
1991/CD
,/,
at/IN
an/DT
indicated/JJ
107/CD
7\/8/CD
to/TO
yield/VB
3.84/CD
%/NN
./.
Each/DT
50,000/CD
Swiss/JJ
franc/NN
note/NN
convertible/JJ
from/IN
Dec./NNP
1/CD
,/,
1989/CD
,/,
to/TO
Dec./NNP
16/CD
,/,
1994/CD
,/,
at/IN
5/CD
%/NN
premium/NN
over/IN
the/DT
closing/NN
share/NN
price/NN
Oct./NNP
26/CD
,/,
when/WRB
terms/NNS
are/VBP
scheduled/VBN
to/TO
be/VB
fixed/VBN
./.
Credit/NNP
Local/NNP
de/FW
France/NNP
--/:
100/CD
million/CD
Swiss/JJ
francs/NNS
of/IN
6/CD
%/NN
,/,
privately/RB
placed/VBN
notes/NNS
due/JJ
Dec./NNP
1/CD
,/,
1996/CD
,/,
priced/VBN
at/IN
100/CD
1\/2/CD
to/TO
yield/VB
5.91/CD
%/NN
,/,
via/IN
Swiss/NNP
Bank/NNP
Corp/NNP
./.
People/NNS
start/VBP
their/PRP$
own/JJ
businesses/NNS
for/IN
many/JJ
reasons/NNS
./.
But/CC
a/DT
chance/NN
to/TO
fill/VB
out/RP
sales-tax/NN
records/NNS
is/VBZ
rarely/RB
one/NN
of/IN
them/PRP
./.
Red/JJ
tape/NN
is/VBZ
the/DT
bugaboo/NN
of/IN
small/JJ
business/NN
./.
Ironically/RB
,/,
the/DT
person/NN
who/WP
wants/VBZ
to/TO
run/VB
his/PRP$
or/CC
her/PRP$
own/JJ
business/NN
is/VBZ
probably/RB
the/DT
active/JJ
,/,
results-oriented/JJ
sort/NN
most/RBS
likely/JJ
to/TO
hate/VB
meeting/VBG
the/DT
rules/NNS
and/CC
record-keeping/NN
demands/NNS
of/IN
federal/JJ
,/,
state/NN
and/CC
local/JJ
regulators/NNS
./.
Yet/CC
every/DT
business/NN
owner/NN
has/VBZ
to/TO
face/VB
the/DT
mound/NN
of/IN
forms/NNS
and/CC
regulations/NNS
--/:
and/CC
often/RB
is/VBZ
the/DT
only/RB
one/NN
available/JJ
to/TO
tackle/VB
it/PRP
./.
There/EX
is/VBZ
hope/NN
of/IN
change/NN
./.
Last/JJ
week/NN
,/,
Sen./NNP
Malcolm/NNP
Wallop/NNP
R./NNP
,/,
Wyo/NNP
./.
hearings/NNS
on/IN
a/DT
bill/NN
to/TO
strengthen/VB
an/DT
existing/JJ
law/NN
designed/VBN
to/TO
reduce/VB
regulatory/JJ
hassles/NNS
for/IN
small/JJ
businesses/NNS
./.
``/``
A/DT
great/JJ
many/JJ
federal/JJ
regulations/NNS
are/VBP
meant/VBN
for/IN
larger/JJR
entities/NNS
and/CC
do/VBP
n't/RB
really/RB
apply/VB
to/TO
small/JJ
businesses/NNS
,/,
''/''
says/VBZ
Marian/NNP
Jacob/NNP
,/,
a/DT
legislative/JJ
aide/NN
to/TO
Sen./NNP
Wallop/NNP
./.
Other/JJ
lawmakers/NNS
are/VBP
busy/JJ
trying/VBG
to/TO
revive/VB
the/DT
recently/RB
lapsed/VBN
Paperwork/NNP
Reduction/NNP
Act/NNP
,/,
which/WDT
many/JJ
feel/NN
benefited/VBD
small/JJ
enterprises/NNS
./.
Thus/RB
,/,
optimistic/JJ
entrepreneurs/NNS
await/VBP
a/DT
promised/JJ
land/NN
of/IN
less/JJR
red/JJ
tape/NN
--/:
just/RB
as/RB
soon/RB
as/IN
Uncle/NNP
Sam/NNP
gets/VBZ
around/IN
to/TO
arranging/VBG
it/PRP
./.
Meanwhile/RB
,/,
they/PRP
tackle/VBP
the/DT
mounds/NNS
of/IN
paper/NN
--/:
and/CC
fantasize/VBP
about/IN
a/DT
dream/NN
world/NN
where/WRB
bulk-mail/NN
postal/JJ
regulations/NNS
and/CC
government/NN
inspectors/NNS
are/VBP
banished/VBN
./.
To/TO
find/VB
out/RP
what/WP
red/JJ
tape/NN
riles/VBZ
entrepreneurs/NNS
most/RBS
,/,
the/DT
Journal/NNP
asked/VBD
a/DT
completely/RB
unscientific/JJ
,/,
random/JJ
sample/NN
of/IN
business/NN
owners/NNS
to/TO
fantasize/VB
about/IN
the/DT
forms/NNS
and/CC
regulations/NNS
they/PRP
would/MD
most/RBS
like/VB
to/TO
get/VB
lost/VBN
in/IN
the/DT
mail/NN
./.
Some/DT
entrepreneurs/NNS
say/VBP
the/DT
red/JJ
tape/NN
they/PRP
most/RBS
love/VBP
to/TO
hate/VB
is/VBZ
red/JJ
tape/NN
they/PRP
would/MD
also/RB
hate/VB
to/TO
lose/VB
./.
They/PRP
concede/VBP
that/IN
much/JJ
of/IN
the/DT
government/NN
meddling/NN
that/IN
torments/VBZ
them/PRP
is/VBZ
essential/JJ
to/TO
the/DT
public/JJ
good/NN
,/,
and/CC
even/RB
to/TO
their/PRP$
own/JJ
businesses/NNS
./.
Rules/NNS
that/WDT
set/VBP
standards/NNS
for/IN
products/NNS
or/CC
govern/VBP
business/NN
behavior/NN
,/,
generally/RB
the/DT
best/RBS
regarded/JJ
form/NN
of/IN
red/JJ
tape/NN
,/,
``/``
create/VBP
a/DT
level/JJ
playing/NN
field/NN
and/CC
keep/VBP
unscrupulous/JJ
competitors/NNS
away/RP
,/,
''/''
says/VBZ
Sidney/NNP
West/NNP
,/,
president/NN
of/IN
TechDesign/NNP
International/NNP
Inc./NNP
,/,
a/DT
Springfield/NNP
,/,
Va./NNP
,/,
business/NN
that/WDT
designs/VBZ
telecommunication/NN
and/CC
other/JJ
products/NNS
./.
Mr./NNP
West/NNP
cites/VBZ
the/DT
Federal/NNP
Communications/NNP
Commission/NNP
and/CC
its/PRP$
standards/NNS
for/IN
telecommunications/NNS
equipment/NN
:/:
``/``
They/PRP
monitor/VBP
product/NN
quality/NN
and/CC
prevent/VBP
junk/NN
from/IN
flooding/VBG
the/DT
market/NN
./.
''/''
Some/DT
gripes/NNS
about/IN
red/JJ
tape/NN
are/VBP
predictable/JJ
:/:
Architects/NNS
complain/VBP
about/IN
a/DT
host/NN
of/IN
building/NN
regulations/NNS
,/,
auto/NN
leasing/NN
companies/NNS
about/IN
car/NN
insurance/NN
rules/NNS
./.
Determining/VBG
when/WRB
handicapped/JJ
access/NN
is/VBZ
required/VBN
can/MD
be/VB
a/DT
nightmare/NN
for/IN
architects/NNS
,/,
says/VBZ
Mark/NNP
Dooling/NNP
,/,
president/NN
of/IN
Dooling/NNP
&/CC
Co./NNP
,/,
a/DT
Newton/NNP
,/,
Mass./NNP
,/,
architectural/JJ
firm/NN
./.
There/EX
is/VBZ
such/PDT
a/DT
maze/NN
of/IN
federal/JJ
,/,
state/NN
and/CC
local/JJ
codes/NNS
that/IN
``/``
building/NN
inspectors/NNS
are/VBP
backing/VBG
away/RB
from/IN
interpreting/VBG
them/PRP
,/,
''/''
Mr./NNP
Dooling/NNP
says/VBZ
./.
Taxi/NN
,/,
leasing/NN
and/CC
other/JJ
companies/NNS
that/WDT
maintain/VBP
fleets/NNS
of/IN
vehicles/NNS
devote/VBP
substantial/JJ
resources/NNS
to/TO
complying/VBG
with/IN
state/NN
insurance/NN
laws/NNS
and/CC
a/DT
host/NN
of/IN
agencies/NNS
./.
``/``
It/PRP
's/VBZ
very/RB
costly/JJ
and/CC
time-consuming/JJ
,/,
''/''
says/VBZ
Phil/NNP
Rosen/NNP
,/,
a/DT
partner/NN
in/IN
Fleet/NNP
&/CC
Leasing/NNP
Management/NNP
Inc./NNP
,/,
a/DT
Boston/NNP
car-leasing/NN
company/NN
./.
One/CD
senior/JJ
executive/NN
at/IN
his/PRP$
firm/NN
spends/VBZ
nearly/RB
20/CD
%/NN
of/IN
his/PRP$
time/NN
on/IN
insurance/NN
,/,
he/PRP
says/VBZ
./.
Other/JJ
forms/NNS
of/IN
red/JJ
tape/NN
are/VBP
more/RBR
pervasive/JJ
./.
The/DT
most/RBS
onerous/JJ
,/,
many/JJ
entrepreneurs/NNS
say/VBP
,/,
is/VBZ
the/DT
record-keeping/NN
and/CC
filing/NN
required/VBN
by/IN
tax/NN
authorities/NNS
./.
Complying/VBG
with/IN
environmental/JJ
and/CC
workplace/JJ
regulations/NNS
runs/VBZ
a/DT
close/JJ
second/JJ
./.
But/CC
gripes/NNS
run/VBP
the/DT
gamut/NN
./.
Here/RB
is/VBZ
the/DT
red/JJ
tape/NN
that/IN
irks/VBZ
surveyed/VBN
business/NN
owners/NNS
the/DT
most/RBS
:/:
ENVIRONMENTAL/JJ
REGULATIONS/NNS
:/:
Next/RB
to/TO
medical/JJ
insurance/NN
,/,
``/``
costs/NNS
of/IN
compliance/NN
''/''
are/VBP
the/DT
fastest-growing/JJ
expense/NN
at/IN
Impco/NNP
Inc./NNP
,/,
a/DT
Providence/NNP
,/,
R.I./NNP
,/,
chemical/NN
company/NN
./.
Peter/NNP
Gebhard/NNP
,/,
the/DT
company/NN
's/POS
owner/NN
,/,
says/VBZ
spending/NN
on/IN
regulatory/JJ
paper/NN
work/NN
and/CC
the/DT
people/NNS
to/TO
do/VB
it/PRP
--/:
mostly/RB
to/TO
comply/VB
with/IN
federal/JJ
,/,
state/NN
and/CC
local/JJ
environmental/JJ
laws/NNS
--/:
will/MD
rise/VB
almost/RB
30/CD
%/NN
this/DT
year/NN
to/TO
$/$
100,000/CD
./.
Mr./NNP
Gebhard/NNP
adds/VBZ
that/IN
spending/NN
on/IN
environmental/JJ
red/JJ
tape/NN
amounts/VBZ
to/TO
between/IN
6.5/CD
%/NN
and/CC
7.5/CD
%/NN
of/IN
Impco/NNP
's/POS
total/JJ
operating/NN
expenses/NNS
./.
Eastern/NNP
Reproduction/NNP
Corp./NNP
,/,
a/DT
Waltham/NNP
,/,
Mass./NNP
,/,
maker/NN
of/IN
thin/JJ
metal/NN
precision/NN
parts/NNS
,/,
must/MD
report/VB
to/TO
five/CD
federal/JJ
and/CC
state/NN
agencies/NNS
as/RB
well/RB
as/IN
to/TO
local/JJ
fire/NN
,/,
police/NN
,/,
hospital/NN
and/CC
plumbing/NN
authorities/NNS
,/,
says/VBZ
Robert/NNP
Maguire/NNP
,/,
president/NN
./.
One/CD
state/NN
environmental/JJ
regulator/NN
returned/VBD
a/DT
report/NN
because/IN
``/``
it/PRP
was/VBD
n't/RB
heavy/JJ
enough/RB
,/,
it/PRP
could/MD
n't/RB
have/VB
been/VBN
correct/JJ
,/,
''/''
Mr./NNP
Maguire/NNP
says/VBZ
./.
WITHHOLDING/NN
RULES/NNS
:/:
Employers/NNS
must/MD
deposit/VB
withholding/NN
taxes/NNS
exceeding/VBG
$/$
3,000/CD
within/IN
three/CD
days/NNS
after/IN
payroll/NN
--/:
or/CC
pay/VB
stiff/JJ
penalties/NNS
--/:
and/CC
that/DT
's/VBZ
a/DT
big/JJ
problem/NN
for/IN
small/JJ
businesses/NNS
./.
It/PRP
's/VBZ
especially/RB
nettlesome/JJ
``/``
if/IN
you/PRP
're/VBP
on/IN
the/DT
road/NN
and/CC
you/PRP
're/VBP
the/DT
one/NN
responsible/JJ
,/,
''/''
says/VBZ
Eddie/NNP
Brown/NNP
,/,
president/NN
of/IN
Brown/NNP
Capital/NNP
Management/NNP
Inc./NNP
,/,
a/DT
Baltimore/NNP
money-management/JJ
firm/NN
./.
EMPLOYEE/NN
MANUALS/NNS
:/:
Revising/VBG
employee/NN
manuals/NNS
on/IN
pensions/NNS
,/,
health/NN
care/NN
and/CC
other/JJ
subjects/NNS
costs/VBZ
over/IN
$/$
25,000/CD
a/DT
year/NN
for/IN
Bert/NNP
Giguiere/NNP
,/,
president/NN
of/IN
Professional/NNP
Agricultural/NNP
Management/NNP
Inc./NNP
,/,
a/DT
Fresno/NNP
,/,
Calif./NNP
,/,
provider/NN
of/IN
business/NN
services/NNS
to/TO
farmers/NNS
./.
An/DT
employer/NN
leaves/VBZ
itself/PRP
open/JJ
to/TO
a/DT
great/JJ
deal/NN
of/IN
liability/NN
if/IN
its/PRP$
employee/NN
manuals/NNS
do/VBP
n't/RB
reflect/VB
the/DT
most/RBS
recent/JJ
laws/NNS
,/,
he/PRP
says/VBZ
./.
But/CC
the/DT
ever-changing/JJ
laws/NNS
are/VBP
usually/RB
so/RB
complicated/JJ
and/CC
confusing/JJ
that/IN
``/``
you/PRP
need/VBP
professionals/NNS
to/TO
help/VB
you/PRP
;/:
you/PRP
ca/MD
n't/RB
do/VB
it/PRP
yourself/PRP
,/,
''/''
he/PRP
adds/VBZ
./.
PENSION/NN
AND/CC
PROFIT-SHARING/NN
RULES/NNS
:/:
Complying/VBG
with/IN
these/DT
is/VBZ
enough/NN
to/TO
make/VB
business/NN
owners/NNS
look/VBP
forward/RB

to/TO
their/PRP$
own/JJ
pension/NN
days/NNS
./.
Yearly/JJ
changes/NNS
in/IN
federal/JJ
benefit/NN
laws/NNS
force/VBP
small/JJ
businesses/NNS
to/TO
repeatedly/RB
re-evaluate/VB
and/CC
redesign/VB
existing/JJ
plans/NNS
./.
Alice/NNP
Fixx/NNP
,/,
who/WP
runs/VBZ
her/PRP$
own/JJ
public-relations/NN
concern/NN
in/IN
New/NNP
York/NNP
,/,
says/VBZ
she/PRP
has/VBZ
had/VBD
to/TO
overhaul/VB
her/PRP$
pension/NN
and/CC
profit-sharing/NN
plans/NNS
three/CD
times/NNS
in/IN
the/DT
past/JJ
three/CD
years/NNS
./.
``/``
It/PRP
does/VBZ
n't/RB
increase/VB
benefits/NNS
,/,
but/CC
it/PRP
's/VBZ
costly/JJ
and/CC
time-consuming/JJ
,/,
''/''
Ms./NNP
Fixx/NNP
says/VBZ
./.
Compliance/NN
added/VBD
15/CD

%/NN
to/TO
20/CD
%/NN
to/TO
her/PRP$
accounting/NN
bill/NN
last/JJ
year/NN
,/,
she/PRP
says/VBZ
./.
SALES/NNS
TAX/NN
RECORDS/NNS
:/:
Advertising/NN
agencies/NNS
and/CC
other/JJ
service/NN
companies/NNS
are/VBP
exempt/JJ
from/IN
city/NN
and/CC
state/NN
sales/NNS
tax/NN
in/IN
most/JJS
locales/NNS
--/:
but/CC
the/DT
exemption/NN
comes/VBZ
at/IN
a/DT
price/NN
of/IN
exhaustive/JJ
records/NNS
and/CC
rigorous/JJ
reviews/NNS
./.
To/TO
justify/VB
their/PRP$
exempt/JJ
status/NN
and/CC
avoid/VB
penalties/NNS
,/,
these/DT
businesses/NNS
must/MD
show/VB
once/RB
a/DT
year/NN
that/IN
each/DT
and/CC
every/DT
transaction/NN
on/IN
which/WDT
they/PRP
did/VBD
n't/RB
pay/VB
sales/NNS
tax/NN
was/VBD
a/DT
legitimate/JJ
business/NN
expense/NN
./.
``/``
You/PRP
need/VBP
one/CD
person/NN
to/TO
just/RB
take/VB
care/NN
of/IN
sales/NNS
tax/NN
,/,
''/''
says/VBZ
Jennie/NNP
Tong/NNP
,/,
executive/JJ
vice/NN
president/NN
of/IN
Lee/NNP
Liu/NNP
&/CC
Tong/NNP
Advertising/NNP
Inc./NNP
,/,
New/NNP
York/NNP
./.
When/WRB
the/DT
Trinity/NNP
Repertory/NNP
Theater/NNP
named/VBD
Anne/NNP
Bogart/NNP
its/PRP$
artistic/JJ
director/NN
last/JJ
spring/NN
,/,
the/DT
nation/NN
's/POS
theatrical/JJ
cognoscenti/NNS
arched/VBD
a/DT
collective/JJ
eyebrow/NN
./.
Ms./NNP
Bogart/NNP
,/,
an/DT
acclaimed/JJ
creator/NN
of/IN
deconstructed/JJ
dramatic/JJ
collages/NNS
that/VBP
tear/VB
into/IN
such/JJ
sacred/JJ
texts/NNS
as/IN
Rodgers/NNP
and/CC
Hammerstein/NNP
's/POS
``/``
South/NNP
Pacific/NNP
,/,
''/''
is/VBZ
decidedly/RB
downtown/JJ
./.
Trinity/NNP
Rep/NNP
meanwhile/RB
is/VBZ
one/CD
of/IN
the/DT
nation/NN
's/POS
oldest/JJS
and/CC
most/RBS
respected/JJ
regional/JJ
theaters/NNS
,/,
still/RB
hosting/VBG
an/DT
annual/JJ
``/``
A/NNP
Christmas/NNP
Carol/NNP
./.
''/''
How/WRB
would/MD
this/DT
bastion/NN
of/IN
traditional/JJ
values/NNS
fare/VB
in/IN
Ms./NNP
Bogart/NNP
's/POS
iconoclastic/JJ
hands/NNS
?/.
She/PRP
held/VBD
her/PRP$
fire/NN
with/IN
her/PRP$
first/JJ
production/NN
at/IN
the/DT
Trinity/NN
earlier/RBR
this/DT
season/NN
./.
It/PRP
was/VBD
a/DT
predictable/JJ
revival/NN
of/IN
her/PRP$
prize-winning/JJ
off-Broadway/JJ
anthology/NN
of/IN
Bertolt/NNP
Brecht/NNP
's/POS
theoretical/JJ
writings/NNS
,/,
called/VBN
``/``
No/NNP
Plays/NNP
,/,
No/NNP
Poetry/NNP
./.
''/''
Now/RB
,/,
with/IN
the/DT
opening/NN
of/IN
Maxim/NNP
Gorky/NNP
's/POS
bourgeois-bashing/JJ
``/``
Summerfolk/NNP
,/,
''/''
Ms./NNP
Bogart/NNP
has/VBZ
laid/VBN
her/PRP$
cards/NNS
on/IN
the/DT
table/NN
./.
Hers/JJ
is/VBZ
a/DT
hand/NN
that/WDT
will/MD
test/VB
the/DT
mettle/NN
of/IN
her/PRP$
audiences/NNS
./.
For/IN
Ms./NNP
Bogart/NNP
,/,
who/WP
initially/RB
studied/VBD
and/CC
directed/VBD
in/IN
Germany/NNP
such/JJ
European/JJ
directors/NNS
as/IN
Peter/NNP
Stein/NNP
,/,
Giorgio/NNP
Strehler/NNP
and/CC
Ariane/NNP
Mnouchkine/NNP
as/IN
influences/NNS
her/PRP$
productions/NNS
with/IN
a/DT
Brechtian/JJ
rigor/NN
--/:
whether/IN
the/DT
text/NN
demands/VBZ
it/PRP
or/CC
not/RB
./.
And/CC
Gorky/NNP
,/,
considered/VBN
the/DT
father/NN
of/IN
Soviet/JJ
socialist/JJ
realism/NN
,/,
did/VBD
not/RB
write/VB
plays/NNS
that/WDT
easily/RB
lend/VBP
themselves/PRP
to/TO
deliberately/RB
antirealistic/JJ
distancing/NN
techniques/NNS
./.
Gorky/NNP
was/VBD
a/DT
loyal/JJ
if/IN
occasionally/RB
ambivalent/JJ
proletarian/JJ
writer/NN
committed/VBN
to/TO
enlightening/VBG
the/DT
masses/NNS
with/IN
plain/JJ
speaking/NN
rooted/VBN
in/IN
a/DT
slightly/RB
sour/JJ
version/NN
of/IN
Chekhovian/JJ
humanism/NN
./.
And/CC
``/``
Summerfolk/NNP
,/,
''/''
penned/VBN
in/IN
1904/CD
as/IN
a/DT
kind/NN
of/IN
sequel/NN
to/TO
Chekhov/NNP
's/POS
``/``
Cherry/NNP
Orchard/NNP
,/,
''/''
is/VBZ
a/DT
lawn/NN
party/NN
of/IN
Russian/JJ
yuppies/NNS
engaged/VBN
in/IN
an/DT
exhausting/JJ
ideological/JJ
fight/NN
to/TO
the/DT
finish/NN
between/IN
the/DT
allrightniks/NNS
and/CC
the/DT
reformers/NNS
./.
Along/IN
the/DT
way/NN
there/EX
also/RB
are/VBP
lots/NNS
of/IN
romantic/JJ
dalliances/NNS
./.
Wisely/RB
Ms./NNP
Bogart/NNP
has/VBZ
kept/VBN
Gorky/NNP
's/POS
time/NN
and/CC
place/NN
intact/JJ
./.
Despite/IN
the/DT
absence/NN
of/IN
samovars/NNS
a/DT
tendency/NN
to/TO
turn/VB
the/DT
furniture/NN
upside/RB
down/RB
)/)
,/,
the/DT
production/NN
is/VBZ
rich/JJ
in/IN
Russian/JJ
ennui/NN
voiced/VBN
by/IN
languorous/JJ
folk/NN
sporting/VBG
beige/JJ
linen/NN
and/CC
rumpled/JJ
cotton/NN
,/,
with/IN
boaters/NNS
and/CC
fishing/NN
poles/NNS
aplenty/RB
./.
But/CC
beyond/IN
this/DT
decorative/JJ
nod/NN
to/TO
tradition/NN
,/,
Ms./NNP
Bogart/NNP
and/CC
company/NN
head/VBP
off/IN
in/IN
a/DT
stylistic/JJ
direction/NN
that/IN
all/RB
but/RB
transforms/VBZ
Gorky/NNP
's/POS
naturalistic/JJ
drama/NN
into/IN
something/NN
akin/JJ
to/TO
,/,
well/RB
,/,
farce/NN
./.
The/DT
director/NN
's/POS
attempt/NN
to/TO
force/VB
some/DT
Brechtian/JJ
distance/NN
between/IN
her/PRP$
actors/NNS
and/CC
their/PRP$
characters/NNS
frequently/RB
backfires/VBZ
with/IN
performances/NNS
that/WDT
are/VBP
unduly/RB
mannered/JJ
./.
Not/RB
only/RB
do/VBP
the/DT
actors/NNS
stand/VB
outside/IN
their/PRP$
characters/NNS
and/CC
make/VB
it/PRP
clear/JJ
they/PRP
are/VBP
at/IN
odds/NNS
with/IN
them/PRP
,/,
but/CC
they/PRP
often/RB
literally/RB
stand/VBP
on/IN
their/PRP$
heads/NNS
./.
Like/IN
Peter/NNP
Sellars/NNP
,/,
Ms./NNP
Bogart/NNP
manipulates/VBZ
her/PRP$
actors/NNS
as/IN
if/IN
they/PRP
were/VBD
rag/NN
dolls/NNS
,/,
sprawling/VBG
them/PRP
on/IN
staircases/NNS
,/,
dangling/VBG
them/PRP
off/IN
tables/NNS
,/,
even/RB
hanging/VBG
them/PRP
from/IN
precipices/NNS
while/IN
having/VBG
them/PRP
perform/VB
some/DT
gymnastic/JJ
feats/NNS
of/IN
derring-do/NN
./.
There/EX
are/VBP
moments/NNS
in/IN
this/DT
``/``
Summerfolk/NNP
''/''
when/WRB
the/DT
characters/NNS
populating/VBG
the/DT
vast/JJ
multilevel/JJ
country/NN
house/NN
which/WDT
looks/VBZ
like/IN
a/DT
parody/NN
of/IN
Frank/NNP
Lloyd/NNP
Wright/NNP
and/CC
is/VBZ
designed/VBN
by/IN
Victoria/NNP
Petrovich/NNP
philosophic/JJ
bon/FW
mots/FW
with/IN
the/DT
self-conscious/JJ
rat-a-tat-tat/JJ
pacing/NN
of/IN
``/``
Laugh/NNP
In/NNP
./.
''/''
``/``
Talk/NN
hurts/VBZ
from/IN
where/WRB
it/PRP
spurts/VBZ
,/,
''/''
one/CD
of/IN
them/PRP
says/VBZ
./.
The/DT
clash/NN
of/IN
ideologies/NNS
survives/VBZ
this/DT
treatment/NN
,/,
but/CC
the/DT
nuance/NN
and/CC
richness/NN
of/IN
Gorky/NNP
's/POS
individual/JJ
characters/NNS
have/VBP
vanished/VBN
in/IN
the/DT
scuffle/NN
./.
As/IN
for/IN
the/DT
humor/NN
that/IN
Gorky/NNP
's/POS
text/NN
provides/VBZ
,/,
when/WRB
repainted/VBN
in/IN
such/JJ
broad/JJ
strokes/NNS
the/DT
lesser/JJR
members/NNS
of/IN
the/DT
ensemble/NN
it/PRP
looks/VBZ
and/CC
sounds/VBZ
forced/JJ
./.
Ms./NNP
Bogart/NNP
does/VBZ
better/RBR
with/IN
music/NN
than/IN
with/IN
words/NNS
when/WRB
she/PRP
wants/VBZ
,/,
as/IN
she/PRP
so/RB
often/RB
does/VBZ
want/VB
,/,
to/TO
express/VB
herself/PRP
through/IN
Gorky/NNP
's/POS
helpless/JJ
play/NN
./.
Here/RB
she/PRP
has/VBZ
the/DT
aid/NN
of/IN
her/PRP$
longtime/JJ
associate/NN
Jeff/NNP
Helpern/NNP
,/,
whom/WP
she/PRP
appointed/VBD
Trinity/NNP
's/POS
first-ever/JJ
musical/JJ
director/NN
and/CC
whom/WP
she/PRP
equipped/VBD
with/IN
a/DT
spanking/JJ
new/JJ
$/$
60,000/CD
sound/NN
system/NN
and/CC
recording/NN
studio/NN
./.
For/IN
Gorky/NNP
,/,
Mr./NNP
Helpern/NNP
provided/VBD
an/DT
aural/JJ
collage/NN
of/IN
Debussy/NNP
and/CC
Rachmaninoff/NNP
,/,
which/WDT
is/VBZ
less/RBR
a/DT
score/NN
than/IN
a/DT
separate/JJ
character/NN
with/IN
a/DT
distinct/JJ
point/NN
of/IN
view/NN
./.
Like/IN
Brecht/NNP
,/,
and/CC
indeed/RB
Ezra/NNP
Pound/NNP
,/,
Ms./NNP
Bogart/NNP
has/VBZ
said/VBD
that/IN
her/PRP$
intent/NN
in/IN
such/JJ
manipulative/JJ
staging/NN
of/IN
the/DT
classics/NNS
is/VBZ
simply/RB
an/DT
attempt/NN
to/TO
``/``
make/VB
it/PRP
new/JJ
./.
''/''
Indeed/RB
,/,
during/IN
a/DT
recent/JJ
post-production/JJ
audience/NN
discussion/NN
,/,
the/DT
director/NN
explained/VBD
that/IN
her/PRP$
fondest/JJS
artistic/JJ
wish/NN
was/VBD
to/TO
find/VB
a/DT
way/NN
to/TO
play/VB
``/``
Somewhere/NNP
Over/NNP
the/NNP
Rainbow/NNP
''/''
so/IN
that/IN
the/DT
song/NN
's/POS
``/``
original/JJ
beauty/NN
comes/VBZ
through/RP
,/,
''/''
surmounting/VBG
the/DT
cliche/NN
./.
The/DT
danger/NN
that/IN
Ms./NNP
Bogart/NNP
seems/VBZ
to/TO
be/VB
courting/VBG
here/RB
is/VBZ
one/CD
of/IN
obfuscation/NN
rather/RB
than/IN
rejuvenation/NN
,/,
a/DT
vision/NN
so/RB
at/IN
odds/NNS
with/IN
the/DT
playwright/NN
's/POS
that/IN
the/DT
two/CD
points/NNS
of/IN
view/NN
nullify/VBP
,/,
rather/RB
than/IN
illuminate/VB
,/,
each/DT
other/JJ
./.
Ms./NNP
Bogart/NNP
's/POS
cast/NN
is/VBZ
part/NN
and/CC
parcel/NN
of/IN
the/DT
problem/NN
./.
Ed/NNP
Shea/NNP
and/CC
Barbara/NNP
Orson/NNP
never/RB
find/VBP
a/DT
real/JJ
reason/NN
for/IN
their/PRP$
love/NN
affair/NN
as/IN
the/DT
foolish/JJ
,/,
idealistic/JJ
young/JJ
Vass/NNP
and/CC
the/DT
tirelessly/RB
humanitarian/JJ
doctor/NN
Maria/NNP
Lvovna/NNP
./.
Cynthia/NNP
Strickland/NNP
as/IN
the/DT
long-suffering/JJ
Varvara/NNP
is/VBZ
a/DT
tiresome/JJ
whiner/NN
,/,
not/RB
the/DT
inspirational/JJ
counterrevolutionary/NN
Gorky/NNP
intended/VBD
./.
Better/RBR
to/TO
look/VB
in/IN
the/DT
corners/NNS
for/IN
performances/NNS
that/WDT
inspire/VBP
or/CC
amuse/VBP
./.
Janice/NNP
Duclos/NNP
,/,
in/IN
addition/NN
to/TO
possessing/VBG
one/CD
of/IN
the/DT
evening/NN
's/POS
more/RBR
impressive/JJ
vocal/JJ
instruments/NNS
,/,
brings/VBZ
an/DT
unsuspected/JJ
comedic/JJ
touch/NN
to/TO
her/PRP$
role/NN
of/IN
Olga/NNP
,/,
everybody/NN
's/POS
favorite/JJ
mom/NN
./.
Marni/NNP
Rice/NNP
plays/VBZ
the/DT
maid/NN
with/IN
so/RB
much/JJ
edge/NN
as/IN
to/TO
steal/VB
her/PRP
two/CD
scenes/NNS
./.
But/CC
it/PRP
is/VBZ
the/DT
Trinity/NNP
Rep/NNP
newcomer/NN
,/,
Jonathan/NNP
Fried/NNP
Zamislov/NNP
,/,
the/DT
paralegal/NN
who/WP
is/VBZ
the/DT
actor/NN
to/TO
watch/VB
,/,
whether/IN
he/PRP
is/VBZ
hamming/VBG
it/PRP
up/RP
while/IN
conducting/VBG
the/DT
chamber/NN
musicians/NNS
or/CC
seducing/VBG
his/PRP$
neighbor/NN
's/POS
wife/NN
Becca/NNP
Lish/NNP
her/PRP$
bosom/NN
./.
Ms./NNP
de/NNP
Vries/NNP
writes/VBZ
frequently/RB
about/IN
theater/NN
./.
its/PRP$
centennial/JJ
year/NN
,/,
The/DT
Wall/NNP
Street/NNP
Journal/NNP
will/MD
report/VB
events/NNS
of/IN
the/DT
past/JJ
century/NN
that/DT
stand/VBP
as/IN
milestones/NNS
of/IN
American/JJ
business/NN
history/NN
./.
MORGAN/NNP
STANLEY/NNP
,/,
THE/DT
ONCE/RB
STODGY/JJ
investment/NN
house/NN
,/,
in/IN
1974/CD
helped/VBD
a/DT
corporate/JJ
client/NN
complete/VB
a/DT
hostile/JJ
takeover/NN
./.
It/PRP
was/VBD
the/DT
start/NN
of/IN
a/DT
boom/NN
in/IN
unfriendly/JJ
,/,
even/RB
ungentlemanly/JJ
,/,
mergers/NNS
./.
On/IN
July/NNP
18/CD
,/,
1974/CD
,/,
International/NNP
Nickle/NNP
of/IN
Canada/NNP
--/:
advised/VBN
by/IN
Morgan/NNP
--/:
offered/VBD
$/$
28/CD
a/DT
share/NN
,/,
equal/JJ
to/TO
$/$
157/CD
million/CD
,/,
for/IN
ESB/NNP
,/,
a/DT
Philadelphia/NNP
battery/NN
maker/NN
./.
ESB/NNP
said/VBD
it/PRP
was/VBD
given/VBN
only/RB
a/DT
three-hour/JJ
advance/NN
warning/NN
on/IN
a/DT
``/``
take/VB
it/PRP
or/CC
leave/VB
it/PRP
''/''
basis/NN
from/IN
Inco/NNP
,/,
as/IN
the/DT
Toronto/NNP
company/NN
is/VBZ
called/VBN
./.
``/``
ESB/NNP
is/VBZ
aware/JJ
that/IN
a/DT
hostile/JJ
tender/NN
offer/NN
is/VBZ
being/VBG
made/VBN
by/IN
a/DT
foreign/JJ
company/NN
for/IN
all/DT
of/IN
ESB/NNP
's/POS
shares/NNS
,/,
''/''
said/VBD
F.J./NNP
Port/NNP
,/,
ESB/NNP
's/POS
president/NN
./.
``/``
Hostile/JJ
''/''
thus/RB
entered/VBD
the/DT
merger-acquisition/JJ
lexicon/NN
./.
Joseph/NNP
Flom/NNP
,/,
of/IN
Skadden/NNP
,/,
Arps/NNP
,/,
Slote/NNP
,/,
Meagher/NNP
&/CC
Flom/NNP
,/,
which/WDT
became/VBD
a/DT
leading/JJ
legal/JJ
firm/NN
in/IN
merger/NN
cases/NNS
,/,
said/VBD
the/DT
case/NN
``/``
made/VBN
takeovers/NNS
respectable/JJ
./.
''/''
ESB/NNP
spurned/VBD
Inco/NNP
and/CC
within/IN
five/CD
days/NNS
ESB/NNP
had/VBD
a/DT
``/``
white/JJ
knight/NN
''/''
as/IN
United/NNP
Aircraft/NNP
--/:
headed/VBN
by/IN
Harry/NNP
Gray/NNP
,/,
a/DT
shrewdly/RB
friendly/JJ
acquirer/NN
of/IN
companies/NNS
--/:
offered/VBD
$/$
34/CD
a/DT
share/NN
./.
Gray/NNP
was/VBD
advised/VBN
by/IN
Goldman/NNP
Sachs/NNP
and/CC
Merrill/NNP
Lynch/NNP
./.
ESB/NNP
directors/NNS
warmly/RB
accepted/VBD
,/,
but/CC
a/DT
whirlwind/JJ
bidding/NN
match/NN
ensued/VBD
./.
Within/IN
a/DT
few/JJ
days/NNS
in/IN
July/NNP
,/,
Inco/NNP
raised/VBD
its/PRP$
bid/NN
to/TO
$/$
36/CD
and/CC
United/NNP
matched/VBD
it/PRP
./.
On/IN
a/DT
single/JJ
day/NN
Inco/NNP
lifted/VBD
its/PRP$
offer/NN
to/TO
$/$
38/CD
and/CC
then/RB
to/TO
$/$
41/CD
,/,
equal/JJ
to/TO
$/$
225.5/CD
million/CD
./.
United/NNP
met/VBD
the/DT
$/$
38/CD
but/CC
then/RB
withdrew/VBD
./.
ESB/NNP
on/IN
July/NNP
29/CD
accepted/VBD
the/DT
Inco/NNP
offer/NN
and/CC
the/DT
brief/JJ
battle/NN
--/:
unlike/IN
the/DT
intricate/JJ
and/CC
lengthy/JJ
big/JJ
takeovers/NNS
of/IN
1984-1989/CD
--/:
was/VBD
over/RB
./.
The/DT
new/JJ
gritty/JJ
game/NN
became/VBD
a/DT
money/NN
maker/NN
for/IN
Wall/NNP
Street/NNP
's/VBZ
once/RB
austere/JJ
old-name/JJ
houses/NNS
./.
Inco/NNP
paid/VBD
Morgan/NNP
an/DT
advisory/JJ
fee/NN
of/IN
about/RB
$/$
250,000/CD
,/,
a/DT
paltry/JJ
figure/NN
by/IN
today/NN
's/POS
measures/NNS
./.
Early/RB
this/DT
year/NN
Morgan/NNP
and/CC
three/CD
other/JJ
investment/NN
houses/NNS
each/DT
received/VBD
$/$
25/CD
million/CD
in/IN
advisory/JJ
fees/NNS
from/IN
Kohlberg/NNP
Kravis/NNP
&/CC
Roberts/NNP
in/IN
its/PRP$
$/$
25/CD
billion/CD
friendly/JJ
buy-out/NN
of/IN
RJR/NNP
Nabisco/NNP
./.
HomeFed/NNP
Corp./NNP
said/VBD
third-quarter/JJ
net/JJ
income/NN
slid/VBD
14/CD
%/NN
to/TO
$/$
23.9/CD
million/CD
,/,
or/CC
$/$
1.10/CD
per/IN
fully/RB
diluted/VBN
share/NN
,/,
from/IN
$/$
27.9/CD
million/CD
,/,
or/CC
$/$
1.21/CD
a/DT
fully/RB
diluted/VBN
share/NN
,/,
because/IN
of/IN
increased/JJ
bad/JJ
assets/NNS
and/CC
unexpected/JJ
trouble/NN
in/IN
unloading/VBG
foreclosed/JJ
property/NN
./.
The/DT
decline/NN
surprised/VBD
analysts/NNS
and/CC
jolted/VBD
HomeFed/NNP
's/POS
stock/NN
,/,
which/WDT
lost/VBD
8.6/CD
%/NN
of/IN
its/PRP$
value/NN
,/,
closing/VBG
at/IN
$/$
38.50/CD
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
down/RB
$/$
3.625/CD
./.
HomeFed/VBN
had/VBD
been/VBN
one/CD
of/IN
the/DT
handful/NN
of/IN
large/JJ
West/NNP
Coast/NNP
thrifts/NNS
that/IN
in/IN
recent/JJ
quarters/NNS
had/VBD
counteracted/VBN
interest-rate/JJ
problems/NNS
dogging/VBG
the/DT
industry/NN
by/IN
keeping/VBG
a/DT
lid/NN
on/IN
problem/NN
assets/NNS
and/CC
lending/VBG
heavily/RB
into/IN
the/DT
furious/JJ
California/NNP
housing/NN
market/NN
./.
Analysts/NNS
had/VBD
been/VBN
projecting/VBG
fully/RB
diluted/VBN
earnings/NNS
in/IN
the/DT
third/JJ
quarter/NN
in/IN
the/DT
range/NN
of/IN
about/RB
$/$
1.30/CD
a/DT
share/NN
./.
However/RB
,/,
HomeFed/NNP
's/POS
loan/NN
originations/NNS
and/CC
purchases/NNS
plunged/VBD
26/CD
%/NN
in/IN
the/DT
quarter/NN
,/,
to/TO
$/$
1.4/CD
billion/CD
from/IN
$/$
1.9/CD
billion/CD
a/DT
year/NN
earlier/RBR
./.
Meanwhile/RB
,/,
non-performing/JJ
assets/NNS
rose/VBD
to/TO
$/$
593/CD
million/CD
from/IN
$/$
518.7/CD
million/CD
./.
Some/DT
$/$
380/CD
million/CD
of/IN
the/DT
troubled/JJ
assets/NNS
is/VBZ
repossessed/JJ
real/JJ
estate/NN
,/,
a/DT
55.6/CD
%/NN
surge/NN
from/IN
the/DT
$/$
244.2/CD
million/CD
of/IN
repossesed/JJ
property/NN
HomeFed/NNP
held/VBD
a/DT
year/NN
ago/RB
./.
HomeFed/NNP
has/VBZ
$/$
17.9/CD
billion/CD
of/IN
assets/NNS
./.
HomeFed/VBN
said/VBD
most/JJS
of/IN
the/DT
troubled/VBN
assets/NNS
are/VBP
apartment/NN
complexes/NNS
,/,
shopping/NN
malls/NNS
and/CC
other/JJ
commercial/JJ
real/JJ
estate/NN
./.
It/PRP
said/VBD
about/RB
half/NN
are/VBP
in/IN
California/NNP
,/,
with/IN
the/DT
rest/NN
scattered/VBN
across/IN
the/DT
country/NN
./.
It/PRP
said/VBD
sales/NNS
of/IN
such/JJ
properties/NNS
were/VBD
slower/JJR
than/IN
anticipated/VBN
in/IN
the/DT
third/JJ
quarter/NN
,/,
but/CC
it/PRP
expects/VBZ
sales/NNS
to/TO
pick/VB
up/RP
in/IN
the/DT
rest/NN
of/IN
the/DT
year/NN
./.
HomeFed/NNP
said/VBD
the/DT
slide/NN
in/IN
loan/NN
originations/NNS
was/VBD
more/RBR
a/DT
matter/NN
of/IN
design/NN
than/IN
a/DT
sign/NN
of/IN
cooling/NN
in/IN
the/DT
California/NNP
market/NN
./.
Any/DT
such/JJ
downturn/NN
in/IN
California/NNP
would/MD
be/VB
grim/JJ
news/NN
for/IN
West/NNP
Coast/NNP
thrifts/NNS
,/,
particularly/RB
the/DT
less/RBR
healthy/JJ
ones/NNS
,/,
which/WDT
have/VBP
performed/VBN
poorly/RB
even/RB
with/IN
a/DT
torrid/JJ
market/NN
./.
But/CC
HomeFed/NNP
said/VBD
it/PRP
purposely/RB
curbed/VBD
loan/NN
originations/NNS
in/IN
the/DT
quarter/NN
because/IN
of/IN
uncertainty/NN
over/IN
the/DT
new/JJ
capital/NN
requirements/NNS
and/CC
regulations/NNS
that/WDT
will/MD
emerge/VB
from/IN
negotiations/NNS
over/IN
implementing/VBG
the/DT
government/NN
's/POS
massive/JJ
thrift/NN
bailout/NN
bill/NN
./.
It/PRP
said/VBD
its/PRP$
real-estate/JJ
operations/NNS
earned/VBD
a/DT
record/NN
$/$
21.7/CD
million/CD
,/,
more/JJR
than/IN
double/RB
year-earlier/JJ
real/JJ
estate/NN
profit/NN
of/IN
$/$
9/CD
million/CD
./.
And/CC
analysts/NNS
said/VBD
they/PRP
see/VBP
no/DT
signs/NNS
of/IN
an/DT
imminent/JJ
swoon/NN
in/IN
California/NNP
real/JJ
estate/NN
,/,
even/RB
with/IN
last/JJ
week/NN
's/POS
earthquake/NN
./.
The/DT
thrift/NN
said/VBD
earnings/NNS
also/RB
were/VBD
nicked/VBN
in/IN
the/DT
quarter/NN
by/IN
a/DT
$/$
4/CD
million/CD
provision/NN
for/IN
losses/NNS
associated/VBN
with/IN
its/PRP$
previously/RB
reported/VBN
plan/NN
to/TO
liquidate/VB
a/DT
real-estate/NN
franchise/NN
network/NN
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
HomeFed/NNP
earned/VBD
$/$
82.5/CD
million/CD
,/,
or/CC
$/$
3.52/CD
a/DT
fully/RB
diluted/VBN
share/NN
,/,
a/DT
4.3/CD
%/NN
increase/NN
from/IN
year-earlier/JJ
net/JJ
income/NN
of/IN
$/$
79.1/CD
million/CD
,/,
or/CC
$/$
3.43/CD
a/DT
fully/RB
diluted/VBN
share/NN
./.
Yields/NNS
on/IN
certificates/NNS
of/IN
deposit/NN
at/IN
major/JJ
banks/NNS
were/VBD
little/RB
changed/VBN
in/IN
the/DT
latest/JJS
week/NN
./.
The/DT
average/JJ
yield/NN
on/IN
six-month/JJ
CDs/NNS
of/IN
$/$
50,000/CD
and/CC
less/JJR
slipped/VBD
to/TO
7.96/CD
%/NN
from/IN
8.00/CD
%/NN
,/,
according/VBG
to/TO
Banxquote/NNP
Money/NNP
Markets/NNP
,/,
an/DT
information/NN
service/NN
based/VBN
here/RB
./.
On/IN
one-year/JJ
CDs/NNP
of/IN
$/$
50,000/CD
and/CC
less/JJR
,/,
the/DT
average/NN
slid/VBD
to/TO
8.02/CD
%/NN
from/IN
8.06/CD
%/NN
./.
Both/DT
issues/NNS
are/VBP
among/IN
the/DT
most/RBS
popular/JJ
with/IN
individual/JJ
investors/NNS
./.
``/``
Because/IN
of/IN
shrinkage/NN
in/IN
the/DT
economy/NN
,/,
rates/NNS
can/MD
be/VB
expected/VBN
to/TO
decline/VB
over/IN
a/DT
one-year/JJ
horizon/NN
,/,
''/''
said/VBD
Norberto/NNP
Mehl/NNP
,/,
chairman/NN
of/IN
Banxquote/NNP
./.
``/``
It/PRP
's/VBZ
unclear/JJ
how/WRB
much/RB
rates/NNS
can/MD
fall/VB
and/CC
how/WRB
soon/RB
./.
''/''
Changes/NNS
in/IN
CD/NN
yields/NNS
in/IN
the/DT
week/NN
ended/VBN
Tuesday/NNP
were/VBD
in/IN
line/NN
with/IN
blips/NNS
up/RB
and/CC
down/RB
within/IN
a/DT
fairly/RB
narrow/JJ
range/NN
for/IN
the/DT
last/JJ
two/CD
months/NNS
./.
Interest/NN
rates/NNS
generally/RB
began/VBD
declining/VBG
last/JJ
spring/NN
after/IN
moving/VBG
steadily/RB
upward/RB
for/IN
more/JJR
than/IN
a/DT
year/NN
./.
The/DT
average/JJ
yield/NN
on/IN
small-denomination/JJ
three-month/JJ
CDs/NNS
moved/VBD
up/RB
two-hundredths/NNS
of/IN
a/DT
percentage/NN
point/NN
in/IN
the/DT
latest/JJS
week/NN
to/TO
7.85/CD
%/NN
./.
Long-term/JJ
CDs/NNS
declined/VBD
just/RB
a/DT
fraction/NN
./.
The/DT
average/JJ
yield/NN
on/IN
both/DT
two-year/JJ
CDs/NNS
and/CC
five-year/JJ
CDs/NNS
was/VBD
7.98/CD
%/NN
./.
Only/RB
CDs/NNS
sold/VBN
by/IN
major/JJ
brokerage/NN
firms/NNS
posted/VBD
significant/JJ
increases/NNS
in/IN
average/JJ
yields/NNS
in/IN
the/DT
latest/JJS
week/NN
,/,
reflecting/VBG
increased/JJ
yields/NNS
on/IN
Treasury/NNP
bills/NNS
sold/VBN
at/IN
Monday/NNP
's/POS
auction/NN
./.
The/DT
average/JJ
yield/NN
on/IN
six-month/JJ
broker-sold/JJ
CDs/NNS
rose/VBD
to/TO
8.29/CD
%/NN
from/IN
8.05/CD
%/NN
and/CC
on/IN
one-year/JJ
CDs/NNS
the/DT
average/JJ
yield/NN
rose/VBD
to/TO
8.30/CD
%/NN
from/IN
8.09/CD
%/NN
./.
The/DT
brokerage/NN
firms/NNS
,/,
which/WDT
negotiate/VBP
rates/NNS
with/IN
the/DT
banks/NNS
and/CC
thrifts/NNS
whose/WP$
CDs/NNS
they/PRP
sell/VBP
,/,
generally/RB
feel/VBP
they/PRP
have/VBP
to/TO
offer/VB
clients/NNS
more/JJR
than/IN
they/PRP
can/MD
get/VB
on/IN
T-bills/NNS
or/CC
from/IN
banks/NNS
and/CC
thrifts/NNS
directly/RB
./.
T-bills/NNS
sold/VBN
at/IN
Monday/NNP
's/POS
auction/NN
yielded/VBN
7.90/CD
%/NN
for/IN
six/CD
months/NNS
and/CC
7.77/CD
%/NN
for/IN
three/CD
months/NNS
,/,
up/RB
from/IN
7.82/CD
%/NN
and/CC
7.61/CD
%/NN
,/,
respectively/RB
,/,
the/DT
week/NN
before/RB
./.
So-called/JJ
jumbo/JJ
CDs/NNS
,/,
typically/RB
in/IN
denominations/NNS
of/IN
$/$
90,000/CD
and/CC
up/RB
,/,
also/RB
usually/RB
follow/VBP
T-bills/NNS
and/CC
interest/NN
rate/NN
trends/NNS
in/IN
general/JJ
more/RBR
than/IN
those/DT
aimed/VBN
at/IN
small/JJ
investors/NNS
./.
Some/DT
jumbos/NNS
posted/VBD
fractional/JJ
changes/NNS
in/IN
average/JJ
yields/NNS
this/DT
week/NN
,/,
both/CC
up/RB
and/CC
down/RB
./.
The/DT
average/JJ
yield/NN
on/IN
threemonth/JJ
jumbos/NNS
rose/VBD
to/TO
8.00/CD
%/NN
from/IN
7.96/CD
%/NN
,/,
while/IN
the/DT
two-year/JJ
average/NN
fell/VBD
by/IN
the/DT
same/JJ
amount/NN
to/TO
7.89/CD
%/NN
./.
Six-month/JJ
and/CC
oneyear/JJ
yields/NNS
were/VBD
unchanged/JJ
,/,
on/IN
average/NN
./.
``/``
The/DT
CD/NN
market/NN
is/VBZ
unsettled/JJ
right/RB
now/RB
,/,
''/''
said/VBD
Banxquote/NNP
's/POS
Mr./NNP
Mehl/NNP
./.
``/``
It/PRP
's/VBZ
very/RB
easily/RB
influenced/VBN
by/IN
changes/NNS
in/IN
the/DT
stock/NN
market/NN
and/CC
the/DT
junk/NN
bond/NN
market/NN
./.
''/''
The/DT
small/JJ
changes/NNS
in/IN
averages/NNS
reflect/VBP
generally/RB
unchanged/JJ
yields/NNS
at/IN
many/JJ
major/JJ
banks/NNS
./.
Some/DT
,/,
however/RB
,/,
lowered/VBD
yields/NNS
significantly/RB
./.
At/IN
Chase/NNP
Manhattan/NNP
Bank/NNP
in/IN
New/NNP
York/NNP
,/,
for/IN
example/NN
,/,
the/DT
yield/NN
on/IN
a/DT
small/JJ
denomination/NN
six-month/JJ
CD/NN
fell/VBD
about/RB
a/DT
quarter/NN
of/IN
a/DT
percentage/NN
point/NN
to/TO
8.06/CD
%/NN
./.
In/IN
California/NNP
,/,
Bank/NNP
of/IN
America/NNP
dropped/VBD
the/DT
yield/NN
on/IN
both/DT
six-month/JJ
and/CC
one-year/JJ
``/``
savings/NNS
''/''
CDs/NNS
to/TO
8.33/CD
%/NN
from/IN
8.61/CD
%/NN
./.
Yields/NNS
on/IN
money-market/JJ
deposits/NNS
were/VBD
unchanged/JJ
at/IN
an/DT
average/JJ
6.96/CD
%/NN
for/IN
$/$
50,000/CD
and/CC
less/JJR
and/CC
down/RB
just/RB
a/DT
hundredth/JJ
of/IN
a/DT
percentage/NN
point/NN
to/TO
7.41/CD
%/NN
for/IN
jumbo/JJ
deposits/NNS
./.
Lion/NNP
Nathan/NNP
Ltd./NNP
agreed/VBD
to/TO
buy/VB
the/DT
franchise/NN
to/TO
bottle/VB
,/,
distribute/VB
and/CC
market/VB
Pepsi-Cola/NNP
soft-drink/NN
products/NNS
in/IN
Australia/NNP
,/,
the/DT
company/NN
said/VBD
./.
The/DT
New/NNP
Zealand/NNP
brewing/NN
and/CC
retail/JJ
concern/NN
did/VBD
n't/RB
disclose/VB
terms/NNS
./.
The/DT
agreement/NN
is/VBZ
effective/JJ
Jan./NNP
1/CD
and/CC
is/VBZ
subject/JJ
to/TO
approval/NN
from/IN
Australia/NNP
's/POS
Foreign/NNP
Investment/NNP
Review/NNP
Board/NNP
./.
Cadbury/NNP
Schweppes/NNP
Australia/NNP
Ltd./NNP
has/VBZ
held/VBN
the/DT
Australian/JJ
Pepsi/NNP
franchise/NN
for/IN
the/DT
past/JJ
four/CD
years/NNS
./.
Lion/NNP
Nathan/NNP
and/CC
PepsiCola/NNP
Australia/NNP
,/,
a/DT
unit/NN
of/IN
PepsiCo/NNP
Inc./NNP
of/IN
the/DT
U.S./NNP
,/,
did/VBD
n't/RB
say/VB
why/WRB
Cadbury/NNP
Schweppes/NNP
will/MD
no/RB
longer/RBR
hold/VB
the/DT
franchise/NN
./.
Wang/NNP
Laboratories/NNP
Inc./NNP
has/VBZ
sold/VBN
$/$
25/CD
million/CD
of/IN
assets/NNS
and/CC
reached/VBN
agreements/NNS
in/IN
principle/NN
to/TO
sell/VB
an/DT
additional/JJ
$/$
187/CD
million/CD
shortly/RB
,/,
Richard/NNP
Miller/NNP
,/,
president/NN
,/,
said/VBD
at/IN
the/DT
annual/JJ
meeting/NN
./.
He/PRP
said/VBD
Wang/NNP
had/VBD
reached/VBN
an/DT
agreement/NN
with/IN
a/DT
``/``
major/JJ
financial/JJ
firm/NN
''/''
to/TO
sell/VB
for/IN
$/$
150/CD
million/CD
its/PRP$
domestic/JJ
equipment/NN
lease/NN
portfolio/NN
and/CC
that/DT
of/IN
its/PRP$
Wang/NNP
Credit/NNP
Corp./NNP
subsidiary/NN
./.
He/PRP
said/VBD
it/PRP
also/RB
agreed/VBD
to/TO
sell/VB
a/DT
portion/NN
of/IN
its/PRP$
European/JJ
real/JJ
estate/NN
unit/NN
for/IN
$/$
37/CD
million/CD
./.
Mr./NNP
Miller/NNP
said/VBD
that/DT
Wang/NNP
has/VBZ
already/RB
sold/VBN
some/DT
$/$
12/CD
million/CD
of/IN
miscellaneous/JJ
assets/NNS
and/CC
disclosed/VBN
that/IN
it/PRP
had/VBD
received/VBN
$/$
13/CD
million/CD
from/IN
Compaq/NNP
Computer/NNP
Corp./NNP
,/,
Houston/NNP
,/,
in/IN
the/DT
previously/RB
announced/VBN
sale/NN
of/IN
its/PRP$
Stirling/NNP
,/,
Scotland/NNP
,/,
plant/NN
./.
Mr./NNP
Miller/NNP
repeated/VBD
that/IN
in/IN
the/DT
next/JJ
six/CD
months/NNS
he/PRP
plans/VBZ
to/TO
sell/VB
another/DT
$/$
200/CD
million/CD
to/TO
$/$
300/CD
million/CD
of/IN
assets/NNS
to/TO
repay/VB
debt/NN
and/CC
reduce/VB
interest/NN
costs/NNS
at/IN
Wang/NNP
,/,
a/DT
minincomputer/JJR
maker/NN
in/IN
Lowell/NNP
,/,
Mass/NNP
./.
In/IN
response/NN
to/TO
questions/NNS
after/IN
the/DT
annual/JJ
meeting/NN
,/,
Mr./NNP
Miller/NNP
said/VBD
the/DT
company/NN
is/VBZ
no/DT
longer/RBR
looking/VBG
for/IN
an/DT
equity/NN
investor/NN
./.
During/IN
the/DT
summer/NN
,/,
Wang/NNP
executives/NNS
had/VBD
said/VBN
they/PRP
might/MD
seek/VB
outside/JJ
investment/NN
./.
Murata/NNP
Mfg./NNP
Co./NNP
said/VBD
it/PRP
is/VBZ
establishing/VBG
a/DT
subsidiary/NN
in/IN
Britain/NNP
to/TO
produce/VB
electric/JJ
parts/NNS
,/,
including/VBG
ceramic/JJ
condensers/NNS
./.
The/DT
Tokyo/NNP
maker/NN
of/IN
ceramic/JJ
capacitors/NNS
said/VBD
it/PRP
purchased/VBD
a/DT
plant/NN
in/IN
Plymouth/NNP
./.
The/DT
company/NN
did/VBD
n't/RB
disclose/VB
a/DT
purchase/NN
price/NN
or/CC
capitalization/NN
figures/NNS
./.
Murata/NNP
said/VBD
,/,
however/RB
,/,
it/PRP
will/MD
invest/VB
about/RB
1.4/CD
billion/CD
yen/NN
$/$
9.9/CD
million/CD
the/DT
new/JJ
company/NN
./.
Production/NN
is/VBZ
slated/VBN
to/TO
begin/VB
in/IN
April/NNP
./.
The/DT
company/NN
,/,
which/WDT
has/VBZ
a/DT
European/JJ
foothold/NN
,/,
Murata/NNP
Europe/NNP
Management/NNP
G.m.b/NNP
./.
H./NNP
in/IN
Germany/NNP
,/,
said/VBD
the/DT
latest/JJS
venture/NN
is/VBZ
designed/VBN
to/TO
meet/VB
demand/NN
for/IN
electric/JJ
parts/NNS
in/IN
European/NNP
Community/NNP
countries/NNS
ahead/RB
of/IN
the/DT
creation/NN
of/IN
the/DT
unified/JJ
market/NN
by/IN
the/DT
end/NN
of/IN
1992/CD
./.
Murata/NNP
expects/VBZ
sales/NNS
at/IN
the/DT
unit/NN
of/IN
about/RB
1.5/CD
billion/CD
yen/NN
in/IN
the/DT
first/JJ
year/NN
./.
Safeway/NNP
Stores/NNP
Inc./NNP
reported/VBD
a/DT
69/CD
%/NN
decline/NN
in/IN
profit/NN
for/IN
the/DT
fiscal/JJ
third/JJ
quarter/NN
,/,
but/CC
said/VBD
operating/NN
improvements/NNS
were/VBD
masked/VBN
by/IN
unusual/JJ
gains/NNS
in/IN
the/DT
year-earlier/JJ
period/NN
./.
The/DT
Oakland/NNP
grocery/NN
retailer/NN
,/,
closely/RB
held/VBN
since/IN
a/DT
$/$
4.2/CD
billion/CD
leveraged/JJ
buy-out/NN
in/IN
1986/CD
,/,
said/VBD
profit/NN
for/IN
the/DT
three/CD
months/NNS
ended/VBN
Sept./NNP
9/CD
was/VBD
$/$
7.1/CD
million/CD
,/,
compared/VBN
with/IN
$/$
23/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
But/CC
it/PRP
said/VBD
the/DT
year-earlier/JJ
results/NNS
included/VBD
gains/NNS
of/IN
$/$
23.5/CD
million/CD
from/IN
divestitures/NNS
./.
Sales/NNS
rose/VBD
4.2/CD
%/NN
to/TO
$/$
3.31/CD
billion/CD
from/IN
$/$
3.2/CD
billion/CD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
the/DT
company/NN
said/VBD
profit/NN
fell/VBD
49/CD
%/NN
to/TO
$/$
23.5/CD
million/CD
from/IN
$/$
46/CD
million/CD
in/IN
the/DT
year-earlier/JJ
quarter/NN
,/,
which/WDT
included/VBD
divestiture-related/JJ
gains/NNS
of/IN
$/$
50.6/CD
million/CD
./.
Sales/NNS
increased/VBD
5.5/CD
%/NN
to/TO
$/$
9.81/CD
billion/CD
from/IN
$/$
9.3/CD
billion/CD
./.
Benjamin/NNP
Jacobson/NNP
&/CC
Sons/NNP
has/VBZ
been/VBN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
specialist/JJ
firm/NN
in/IN
charge/NN
of/IN
trading/VBG
stock/NN
in/IN
UAL/NNP
Corp./NNP
and/CC
its/PRP$
predecessors/NNS
since/IN
the/DT
early/JJ
1930s/CD
./.
But/CC
the/DT
firm/NN
has/VBZ
never/RB
had/VBD
a/DT
day/NN
like/IN
yesterday/RB
./.
At/IN
first/JJ
UAL/NNP
did/VBD
n't/RB
open/VB
because/IN
of/IN
an/DT
order/NN
imbalance/NN
./.
When/WRB
it/PRP
did/VBD
a/DT
half-hour/NN
into/IN
the/DT
session/NN
,/,
it/PRP
was/VBD
priced/VBN
at/IN
$/$
150/CD
a/DT
share/NN
,/,
down/RB
more/JJR
than/IN
$/$
28/CD
from/IN
Monday/NNP
's/POS
close/NN
./.
It/PRP
sank/VBD
further/RBR
to/TO
as/RB
low/JJ
as/IN
$/$
145/CD
,/,
but/CC
a/DT
big/JJ
rally/NN
developed/VBD
in/IN
the/DT
last/JJ
half/JJ
hour/NN
,/,
pushing/VBG
the/DT
stock/NN
back/RB
up/RB
to/TO
close/VB
at/IN
$/$
170/CD
,/,
down/RB
just/RB
$/$
8.375/CD
from/IN
Monday/NNP
./.
In/IN
the/DT
process/NN
,/,
4.9/CD
million/CD
shares/NNS
traded/VBN
,/,
making/VBG
UAL/NNP
the/DT
second/JJ
most/RBS
active/JJ
issue/NN
on/IN
the/DT
Big/NNP
Board/NNP
./.
Munching/VBG
pizza/NN
when/WRB
they/PRP
could/MD
and/CC
yelling/VBG
until/IN
their/PRP$
voices/NNS
gave/VBD
out/RP
,/,
the/DT
two/CD
Benjamin/NNP
Jacobson/NNP
specialists/NNS
at/IN
the/DT
Big/NNP
Board/NNP
's/POS
UAL/NNP
trading/NN
post/NN
yesterday/NN
presided/VBD
over/IN
what/WP
can/MD
only/RB
be/VB
described/VBN
as/IN
a/DT
financial/JJ
free-for-all/NN
./.
``/``
It/PRP
was/VBD
chaotic/JJ
./.
But/CC
we/PRP
like/VBP
to/TO
call/VB
it/PRP
`/``
controlled/JJ
chaos/NN
,/,
'/''
''/''
said/VBD
47-year-old/JJ
Robert/NNP
J./NNP
Jacobson/NNP
Jr./NNP
,/,
grandson/NN
of/IN
the/DT
firm/NN
's/POS
founder/NN
./.
He/PRP
manned/VBD
the/DT
UAL/NNP
post/NN
yesterday/NN
with/IN
Christopher/NNP
Bates/NNP
,/,
33/CD
,/,
an/DT
energetic/JJ
Long/NNP
Islander/NNP
who/WP
's/VBZ
a/DT
dead/JJ
ringer/NN
for/IN
actor/NN
Nicolas/NNP
Cage/NNP
./.
Who/WP
was/VBD
doing/VBG
all/PDT
the/DT
selling/NN
?/.
``/``
Options/NNS
traders/NNS
,/,
arbitrage/NN
traders/NNS
--/:
everyone/NN
,/,
''/''
said/VBD
Mr./NNP
Bates/NNP
,/,
cooling/VBG
down/RP
with/IN
a/DT
carton/NN
of/IN
apple/NN
juice/NN
after/IN
the/DT
close/NN
yesterday/NN
./.
Added/NNP
Mr./NNP
Jacobson/NNP
,/,
``/``
There/EX
were/VBD
some/DT
pretty/RB
bad/JJ
losses/NNS
in/IN
the/DT
stock/NN
./.
''/''
Big/NNP
Board/NNP
traders/NNS
said/VBD
a/DT
200,000-share/JJ
buy/JJ
order/NN
at/IN
$/$
150/CD
a/DT
share/NN
entered/VBN
by/IN
Bear/NNP
,/,
Stearns/NNP
&/CC
Co./NNP
,/,
which/WDT
was/VBD
active/JJ
in/IN
UAL/NNP
stock/NN
all/RB|DT
day/NN
,/,
is/VBZ
what/WP
set/VBD
off/RP
the/DT
UAL/NNP
crowd/NN
in/IN
the/DT
late/JJ
afternoon/NN
./.
A/DT
subsequent/JJ
rally/NN
in/IN
UAL/NNP
helped/VBD
the/DT
staggering/VBG
stock/NN
market/NN
stage/NN
an/DT
astonishing/JJ
recovery/NN
from/IN
an/DT
80-point/JJ
deficit/NN
to/TO
finish/VB
only/RB
slightly/RB
below/IN
Monday/NNP
's/POS
close/NN
./.
Both/DT
Jacobson/NNP
traders/NNS
,/,
who/WP
had/VBD
been/VBN
hoping/VBG
UAL/NNP
trading/NN
would/MD
get/VB
back/RB
to/TO
normal/JJ
,/,
read/VBD
the/DT
news/NN
about/IN
the/DT
unraveling/NN
of/IN
UAL/NNP
takeover/NN
plans/NNS
on/IN
the/DT
train/NN
into/IN
work/NN
yesterday/NN
morning/NN
./.
The/DT
news/NN
told/VBD
them/PRP
it/PRP
would/MD
be/VB
a/DT
while/NN
longer/RBR
before/IN
UAL/NNP
resumed/VBD
trading/VBG
like/IN
a/DT
regular/JJ
airline/NN
stock/NN
after/IN
months/NNS
of/IN
gyrations/NNS
./.
When/WRB
Mr./NNP
Jacobson/NNP
walked/VBD
into/IN
the/DT
office/NN
at/IN
7:30/CD
a.m./RB
EDT/NNP
,/,
he/PRP
announced/VBD
:/:
``/``
OK/UH
,/,
buckle/VB
up/RP
./.
''/''
Messrs./NNPS
Jacobson/NNP
and/CC
Bates/NNP
walked/VBD
on/IN
the/DT
Big/NNP
Board/NNP
floor/NN
at/IN
about/RB
8:45/CD
a.m./NN
yesterday/NN
and/CC
immediately/RB
spotted/VBD
trouble/NN
./.
Already/RB
entered/VBN
in/IN
the/DT
Big/NNP
Board/NNP
's/POS
computers/NNS
and/CC
transmitted/VBN
to/TO
their/PRP$
post/NN
were/VBD
sell/JJ
orders/NNS
for/IN
65,000/CD
UAL/NNP
shares/NNS
./.
The/DT
UAL/NNP
news/NN
had/VBD
already/RB
caused/VBN
a/DT
selling/NN
furor/NN
in/IN
the/DT
so-called/JJ
third/JJ
market/NN
,/,
in/IN
which/WDT
firms/NNS
buy/VBP
and/CC
sell/VBP
stock/NN
away/RB
from/IN
the/DT
exchange/NN
floor/NN
./.
UAL/NNP
,/,
which/WDT
closed/VBD
on/IN
the/DT
Big/NNP
Board/NNP
Monday/NNP
at/IN
$/$
178.375/CD
a/DT
share/NN
,/,
traded/VBD
in/IN
the/DT
third/JJ
market/NN
afterward/RB
as/RB
low/JJ
as/IN
$/$
158/CD
a/DT
share/NN
./.
There/EX
were/VBD
rumors/NNS
of/IN
$/$
148-a-share/JJ
trades/NNS
./.
In/IN
the/DT
45/CD
minutes/NNS
before/IN
the/DT
9:30/CD
opening/NN
bell/NN
,/,
the/DT
Jacobson/NNP
specialists/NNS
kept/VBD
getting/VBG
sell/JJ
orders/NNS
,/,
heavier/JJR
than/IN
they/PRP
imagined/VBD
./.
And/CC
at/IN
9:15/CD
,/,
they/PRP
posted/VBD
a/DT
$/$
135/CD
to/TO
$/$
155/CD
``/``
first/JJ
indication/NN
,/,
''/''
or/CC
the/DT
price/NN
range/NN
in/IN
which/WDT
the/DT
stock/NN
would/MD
probably/RB
open/VB
./.
That/DT
range/NN
was/VBD
quickly/RB
narrowed/VBN
to/TO
$/$
145/CD
to/TO
$/$
155/CD
,/,
although/IN
traders/NNS
surrounding/VBG
the/DT
post/NN
were/VBD
told/VBN
that/IN
$/$
148/CD
to/TO
$/$
150/CD
would/MD
be/VB
the/DT
likely/JJ
target/NN
./.
When/WRB
UAL/NNP
finally/RB
opened/VBD
a/DT
half/JJ
hour/NN
late/RB
,/,
some/DT
400,000/CD
shares/NNS
traded/VBD
at/IN
$/$
150/CD
./.
There/EX
was/VBD
``/``
selling/NN
pressure/NN
from/IN
everyone/NN
,/,
''/''
said/VBD
one/CD
trader/NN
./.
This/DT
month/NN
's/POS
Friday-the-13th/NN
market/NN
plunge/NN
spurred/VBN
by/IN
UAL/NNP
news/NN
was/VBD
n't/RB
as/IN
bad/JJ
for/IN
the/DT
Jacobson/NNP
specialists/NNS
as/IN
yesterday/NN
's/POS
action/NN
./.
On/IN
that/DT
earlier/JJR
day/NN
,/,
the/DT
stock/NN
's/POS
trading/NN
was/VBD
halted/VBN
at/IN
a/DT
critical/JJ
time/NN
so/IN
the/DT
specialists/NNS
could/MD
catch/VB
their/PRP$
breath/NN
./.
Not/RB
yesterday/NN
./.
Mr./NNP
Jacobson/NNP
,/,
his/PRP$
gray/JJ
hair/NN
flying/VBG
,/,
did/VBD
n't/RB
wear/NN
out/RP
his/PRP$
red-white-and-blue/JJ
sneakers/NNS
,/,
but/CC
he/PRP
sweat/VBD
so/RB
much/RB
he/PRP
considered/VBD
sending/VBG
out/RP
for/IN
a/DT
new/JJ
shirt/NN
./.
Mr./NNP
Bates/NNP
usually/RB
handles/VBZ
day-to-day/JJ
UAL/NNP
trading/NN
on/IN
his/PRP$
own/JJ
./.
But/CC
yesterday/NN
,/,
the/DT
heavy/JJ
trading/NN
action/NN
eventually/RB
consumed/VBD
not/RB
only/RB
Messrs./NNPS
Jacobson/NNP
and/CC
Bates/NNP
but/CC
four/CD
other/JJ
Jacobson/NNP
partners/NNS
,/,
all/DT
doing/VBG
their/PRP$
specialist-firm/JJ
job/NN
of/IN
tugging/VBG
buyers/NNS
and/CC
sellers/NNS
together/RB
and/CC
adjusting/VBG
prices/NNS
to/TO
accommodate/VB
the/DT
market/NN
./.
About/IN
30/CD
floor/NN
traders/NNS
crammed/VBD
near/IN
the/DT
UAL/NNP
post/NN
most/RBS
of/IN
the/DT
day/NN
,/,
and/CC
probably/RB
hundreds/NNS
more/RBR
came/VBD
and/CC
went/VBD
--/:
a/DT
``/``
seething/JJ
mass/NN
,/,
''/''
as/IN
one/CD
trader/NN
described/VBD
it/PRP
./.
The/DT
4.9/CD
million-share/JJ
volume/NN
flowing/VBG
through/IN
the/DT
Jacobson/NNP
specialist/NN
operation/NN
was/VBD
about/RB
five/CD
times/NNS
normal/JJ
for/IN
the/DT
stock/NN
./.
The/DT
heavy/NN
buying/NN
in/IN
the/DT
last/JJ
half/JJ
hour/NN
led/VBD
the/DT
specialists/NNS
to/TO
take/VB
special/JJ
steps/NNS
./.
The/DT
Bear/NNP
Stearns/NNP
order/NN
that/WDT
marked/VBD
the/DT
late-day/JJ
turnaround/NN
caused/VBD
a/DT
``/``
massive/JJ
buying/NN
effort/NN
''/''
as/IN
UAL/NNP
jumped/VBD
$/$
20/CD
a/DT
share/NN
to/TO
$/$
170/CD
in/IN
the/DT
last/JJ
half/JJ
hour/NN
,/,
said/VBD
Mr./NNP
Bates/NNP
./.
With/IN
15/CD
seconds/NNS
of/IN
trading/NN
to/TO
go/VB
,/,
Mr./NNP
Jacobson/NNP
,/,
with/IN
what/WP
voice/NN
he/PRP
had/VBD
left/VBN
,/,
announced/VBD
to/TO
the/DT
trading/NN
mob/NN
:/:
``/``
We/PRP
're/VBP
going/VBG
to/TO
trade/VB
one/CD
price/NN
on/IN
the/DT
bell/NN
./.
''/''
That/WDT
meant/VBD
no/DT
trading/NN
would/MD
occur/VB
in/IN
the/DT
final/JJ
seconds/NNS
,/,
as/IN
a/DT
way/NN
of/IN
making/VBG
sure/JJ
that/IN
last-second/JJ
orders/NNS
are/VBP
n't/RB
subjected/VBN
to/TO
a/DT
sudden/JJ
price/NN
swing/NN
that/WDT
would/MD
upset/VB
customers/NNS
./.
About/RB
11,000/CD
shares/NNS
sold/VBN
at/IN
$/$
170/CD
on/IN
the/DT
bell/NN
,/,
representing/VBG
about/RB
eight/CD
to/TO
10/CD
late/JJ
orders/NNS
,/,
the/DT
specialists/NNS
estimate/VBP
./.
Big/NNP
Board/NNP
traders/NNS
praised/VBD
the/DT
Jacobson/NNP
specialists/NNS
for/IN
getting/VBG
through/IN
yesterday/NN
without/IN
a/DT
trading/NN
halt/NN
./.
In/IN
Chicago/NNP
,/,
a/DT
UAL/NNP
spokesman/NN
,/,
``/``
by/IN
way/NN
of/IN
policy/NN
,/,
''/''
declined/VBD
to/TO
comment/VB
on/IN
the/DT
company/NN
's/POS
stock/NN
or/CC
the/DT
specialists/NNS
'/POS
performance/NN
./.
Leaving/VBG
the/DT
exchange/NN
at/IN
about/RB
5/CD
p.m./NN
,/,
the/DT
Jacobson/NNP
specialists/NNS
made/VBD
no/DT
predictions/NNS
about/IN
how/WRB
trading/NN
might/MD
go/VB
today/NN
./.
Said/VBD
Earl/NNP
Ellis/NNP
,/,
a/DT
Jacobson/NNP
partner/NN
who/WP
got/VBD
involved/VBN
in/IN
the/DT
UAL/NNP
action/NN
,/,
``/``
It/PRP
all/DT
starts/VBZ
all/RB
over/RB
again/RB
''/''
today/NN
./.
Britain/NNP
's/POS
current/JJ
account/NN
deficit/NN
dropped/VBD
to/TO
#/#
1.6/CD
billion/CD
$/$
2.56/CD
billion/CD
September/NNP
from/IN
an/DT
adjusted/JJ
#/#
2/,
billion/CD
$/$
3.21/CD
billion/CD
the/DT
previous/JJ
month/NN
,/,
but/CC
the/DT
improvement/NN
comes/VBZ
amid/IN
increasing/VBG
concern/NN
that/IN
a/DT
recession/NN
could/MD
strike/VB
the/DT
U.K./NNP
economy/NN
next/JJ
year/NN
./.
The/DT
Confederation/NNP
of/IN
British/NNP
Industry/NNP
's/POS
latest/JJS
survey/NN
shows/VBZ
that/IN
business/NN
executives/NNS
expect/VBP
a/DT
pronounced/JJ
slowdown/NN
,/,
largely/RB
because/IN
of/IN
a/DT
16-month/JJ
series/NN
of/IN
interest-rate/NN
increases/NNS
that/WDT
has/VBZ
raised/VBN
banks/NNS
'/POS
base/NN
lending/NN
rates/NNS
to/TO
15/CD
%/NN
./.
``/``
The/DT
outlook/NN
has/VBZ
deteriorated/VBN
since/IN
the/DT
summer/NN
,/,
with/IN
orders/NNS
and/CC
employment/NN
falling/VBG
and/CC
output/NN
at/IN
a/DT
standstill/NN
,/,
''/''
said/VBD
David/NNP
Wigglesworth/NNP
,/,
chairman/NN
of/IN
the/DT
industry/NN
group/NN
's/POS
economic/JJ
committee/NN
./.
He/PRP
also/RB
said/VBD
investment/NN
by/IN
businesses/NNS
is/VBZ
falling/VBG
off/RP
./.
Of/IN
1,224/CD
companies/NNS
surveyed/VBN
,/,
31/CD
%/NN
expect/VBP
to/TO
cut/VB
spending/NN
on/IN
plant/NN
equipment/NN
and/CC
machinery/NN
,/,
while/IN
only/RB
28/CD
%/NN
plan/NN
to/TO
spend/VB
more/JJR
./.
But/CC
despite/IN
mounting/VBG
recession/NN
fears/NNS
,/,
government/NN
data/NNS
do/VBP
n't/RB
yet/RB
show/VB
the/DT
economy/NN
grinding/VBG
to/TO
a/DT
halt/NN
./.
Unemployment/NN
,/,
for/IN
example/NN
,/,
has/VBZ
continued/VBN
to/TO
decline/VB
,/,
and/CC
the/DT
September/NNP
trade/NN
figures/NNS
showed/VBD
increases/NNS
in/IN
both/CC
imports/NNS
and/CC
exports/NNS
./.
As/IN
a/DT
result/NN
,/,
Prime/NNP
Minister/NNP
Margaret/NNP
Thatcher/NNP
's/POS
government/NN
is/VBZ
n't/RB
currently/RB
expected/VBN
to/TO
ease/VB
interest/NN
rates/NNS
before/IN
next/JJ
spring/NN
,/,
if/IN
then/RB
./.
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
Nigel/NNP
Lawson/NNP
views/VBZ
the/DT
high/JJ
rates/NNS
as/IN
his/PRP$
chief/JJ
weapon/NN
against/IN
inflation/NN
,/,
which/WDT
was/VBD
ignited/VBN
by/IN
tax/NN
cuts/NNS
and/CC
loose/JJ
credit/NN
policies/NNS
in/IN
1986/CD
and/CC
1987/CD
./.
Officials/NNS
fear/VBP
that/IN
any/DT
loosening/NN
this/DT
year/NN
could/MD
rekindle/VB
inflation/NN
or/CC
further/RB
weaken/VB
the/DT
pound/NN
against/IN
other/JJ
major/JJ
currencies/NNS
./.
Fending/VBG
off/RP
attacks/NNS
on/IN
his/PRP$
economic/JJ
policies/NNS
in/IN
a/DT
House/NNP
of/IN
Commons/NNP
debate/NN
yesterday/NN
,/,
Mr./NNP
Lawson/NNP
said/VBD
inflation/NN
``/``
remains/VBZ
the/DT
greatest/JJS
threat/NN
to/TO
our/PRP$
economic/JJ
well-being/NN
''/''
and/CC
promised/VBD
to/TO
take/VB
``/``
whatever/WDT
steps/NNS
are/VBP
needed/VBN
''/''
to/TO
choke/VB
it/PRP
off/RP
./.
The/DT
latest/JJS
government/NN
figures/NNS
said/VBD
retail/JJ
prices/NNS
in/IN
September/NNP
were/VBD
up/RB
7.6/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
./.
Many/JJ
economists/NNS
have/VBP
started/VBN
predicting/VBG
a/DT
mild/JJ
recession/NN
next/IN
year/NN
./.
David/NNP
Owen/NNP
,/,
U.K./NNP
economist/NN
with/IN
Kleinwort/NNP
Benson/NNP
Group/NNP
,/,
reduced/VBD
his/PRP$
growth/NN
forecast/NN
for/IN
1990/CD
to/TO
0.7/CD
%/NN
from/IN
1.2/CD
%/NN
and/CC
termed/VBD
the/DT
risk/NN
of/IN
recession/NN
next/JJ
year/NN
``/``
quite/RB
high/JJ
./.
''/''
But/CC
he/PRP
said/VBD
the/DT
downturn/NN
probably/RB
wo/MD
n't/RB
become/VB
a/DT
``/``
major/JJ
contraction/NN
''/''
similar/JJ
to/TO
those/DT
of/IN
1974/CD
and/CC
1982/CD
./.
Still/RB
,/,
Britain/NNP
's/POS
current/JJ
slump/NN
is/VBZ
a/DT
cause/NN
for/IN
concern/NN
here/RB
as/IN
the/DT
nation/NN
joins/VBZ
in/IN
the/DT
European/NNP
Community/NNP
's/POS
plan/NN
to/TO
create/VB
a/DT
unified/JJ
market/NN
by/IN
1992/CD
./.
Compared/VBN
with/IN
the/DT
major/JJ
economies/NNS
on/IN
the/DT
Continent/NNP
,/,
the/DT
U.K./NNP
faces/VBZ
both/CC
higher/JJR
inflation/NN
and/CC
lower/JJR
growth/NN
in/IN
the/DT
next/JJ
several/JJ
months/NNS
./.
As/IN
a/DT
result/NN
,/,
Mr./NNP
Owen/NNP
warned/VBD
,/,
investment/NN
will/MD
be/VB
more/RBR
likely/JJ
to/TO
flow/VB
toward/IN
the/DT
other/JJ
European/JJ
economies/NNS
and/CC
``/``
the/DT
U.K./NNP
will/MD
be/VB
less/RBR
prepared/JJ
for/IN
the/DT
single/JJ
market/NN
./.
''/''
Britain/NNP
's/POS
latest/JJS
trade/NN
figures/NNS
contained/VBD
some/DT
positive/JJ
news/NN
for/IN
the/DT
economy/NN
,/,
such/JJ
as/IN
a/DT
surge/NN
in/IN
the/DT
volume/NN
of/IN
exports/NNS
,/,
which/WDT
were/VBD
8.5/CD
%/NN
higher/JJR
than/IN
a/DT
year/NN
earlier/RBR
./.
But/CC
while/IN
September/NNP
exports/NNS
rose/VBD
to/TO
#/#
8.43/CD
billion/CD
,/,
imports/NNS
shot/VBD
up/RB
to/TO
#/#
10.37/CD
billion/CD
./.
The/DT
resulting/JJ
#/#
1.9/CD
billion/CD
merchandise/NN
trade/NN
deficit/NN
was/VBD
partly/RB
offset/VBN
by/IN
an/DT
assumed/JJ
surplus/NN
of/IN
#/#
300/CD
million/CD
in/IN
so-called/JJ
invisible/JJ
items/NNS
,/,
which/WDT
include/VBP
income/NN
from/IN
investments/NNS
,/,
services/NNS
and/CC
official/JJ
transfers/NNS
./.
Despite/IN
the/DT
narrowing/NN
of/IN
the/DT
monthly/JJ
trade/NN
gap/NN
,/,
economists/NNS
expect/VBP
the/DT
current/JJ
account/NN
deficit/NN
for/IN
all/DT
of/IN
1989/CD
to/TO
swell/VB
to/TO
about/RB
#/#
20/CD
billion/CD
from/IN
#/#
14.6/CD
billion/CD
in/IN
1988/CD
./.
Increasingly/RB
,/,
economists/NNS
say/VBP
the/DT
big/JJ
deficit/NN
reflects/VBZ
the/DT
slipping/VBG
competitive/JJ
position/NN
of/IN
British/JJ
industry/NN
./.
``/``
When/WRB
the/DT
country/NN
gets/VBZ
wealthier/JJR
,/,
we/PRP
tend/VBP
to/TO
buy/VB
high-quality/JJ
imports/NNS
,/,
''/''
Mr./NNP
Owen/NNP
said/VBD
./.
Vickers/NNP
PLC/NNP
,/,
a/DT
British/JJ
aerospace/JJ
,/,
defense/NN
and/CC
automotive/JJ
conglomerate/NN
,/,
said/VBD
it/PRP
reached/VBD
an/DT
agreed/JJ
cash/NN
bid/NN
of/IN
#/#
108.2/CD
million/CD
$/$
173.3/CD
million/CD
Ross/NNP
Catherall/NNP
Group/NNP
PLC/NNP
,/,
a/DT
maker/NN
of/IN
specialty/JJ
alloy/NN
and/CC
ceramics/NNS
./.
The/DT
company/NN
said/VBD
it/PRP
expects/VBZ
to/TO
receive/VB
acceptances/NNS
for/IN
its/PRP$
offer/NN
of/IN
253/CD
pence/NNS
$/$
4.05/CD
share/NN
representing/VBG
at/IN
least/JJS
67/CD
%/NN
of/IN
Ross/NNP
Catherall/NNP
's/POS
issued/JJ
share/NN
capital/NN
,/,
or/CC
12.7/CD
million/CD
ordinary/JJ
shares/NNS
./.
Vickers/NNP
said/VBD
its/PRP$
offer/NN
also/RB
includes/VBZ
an/DT
option/NN
to/TO
receive/VB
a/DT
redeemable/JJ
loan/NN
note/NN
in/IN
lieu/NN
of/IN
cash/NN
./.
The/DT
notes/NNS
can/MD
be/VB
redeemed/VBN
starting/VBG
in/IN
July/NNP
1991/CD
./.
The/DT
company/NN
said/VBD
its/PRP$
acquisition/NN
of/IN
Ross/NNP
Catherall/NNP
will/MD
be/VB
covered/VBN
largely/RB
by/IN
cash/NN
raised/VBN
in/IN
its/PRP$
July/NNP
disposal/NN
of/IN
Howson-Algraphy/NNP
for/IN
#/#
241.7/CD
million/CD
./.
If/IN
bluebloods/NNS
wo/MD
n't/RB
pay/VB
high/JJ
prices/NNS
for/IN
racehorses/NNS
anymore/RB
,/,
who/WP
will/MD
?/.
Breeders/NNS
are/VBP
betting/VBG
on/IN
the/DT
common/JJ
folk/NN
./.
The/DT
Thoroughbred/NNP
Owners/NNP
and/CC
Breeders/NNP
Association/NNP
,/,
a/DT
Lexington/NNP
,/,
Ky.-based/JJ
trade/NN
group/NN
,/,
has/VBZ
launched/VBN
``/``
seminars/NNS
''/''
for/IN
``/``
potential/JJ
investors/NNS
''/''
at/IN
race/NN
tracks/NNS
around/IN
the/DT
country/NN
./.
The/DT
group/NN
,/,
which/WDT
has/VBZ
held/VBN
half/PDT
a/DT
dozen/NN
seminars/NNS
so/RB
far/RB
,/,
also/RB
is/VBZ
considering/VBG
promotional/JJ
videos/NNS
and/CC
perhaps/RB
a/DT
pitch/NN
to/TO
Wall/NNP
Street/NNP
investment/NN
bankers/NNS
./.
``/``
People/NNS
in/IN
this/DT
business/NN
have/VBP
been/VBN
insulated/VBN
,/,
''/''
says/VBZ
Josh/NNP
Pons/NNP
,/,
a/DT
horse/NN
breeder/NN
from/IN
Bel/NNP
Air/NNP
,/,
Md/NNP
./.
``/``
But/CC
the/DT
real/JJ
future/NN
of/IN
this/DT
game/NN
is/VBZ
in/IN
a/DT
number/NN
of/IN
people/NNS
owning/VBG
a/DT
few/JJ
horses/NNS
./.
''/''
At/IN
the/DT
Laurel/NNP
race/NN
track/NN
,/,
the/DT
breeders/NNS
are/VBP
romancing/VBG
people/NNS
like/IN
Tim/NNP
Hulings/NNP
,/,
a/DT
beer/NN
packaging/NN
plant/NN
worker/NN
./.
Right/RB
now/RB
,/,
Mr./NNP
Hulings/NNP
is/VBZ
waving/VBG
his/PRP$
racing/NN
program/NN
,/,
cheering/VBG
for/IN
Karnak/NNP
on/IN
the/DT
Nile/NNP
,/,
a/DT
sleek/JJ
thoroughbred/NN
galloping/VBG
down/IN
the/DT
home/NN
stretch/NN
./.
Mr./NNP
Hulings/NNP
gloats/VBZ
that/IN
he/PRP
sold/VBD
all/PDT
his/PRP$
stocks/NNS
a/DT
week/NN
before/IN
the/DT
market/NN
plummeted/VBD
190/CD
points/NNS
on/IN
Oct./NNP
13/CD
,/,
and/CC
he/PRP
is/VBZ
using/VBG
the/DT
money/NN
to/TO
help/VB
buy/VB
a/DT
45-acre/JJ
horse/NN
farm/NN
./.
``/``
Just/RB
imagine/VB
how/WRB
exciting/JJ
that/DT
would/MD
be/VB
if/IN
that/DT
's/VBZ
your/PRP$
horse/NN
,/,
''/''
he/PRP
says/VBZ
./.
But/CC
experts/NNS
caution/VBP
that/IN
this/DT
is/VBZ
n't/RB
a/DT
game/NN
for/IN
anyone/NN
with/IN
a/DT
weak/JJ
stomach/NN
or/CC
wallet/NN
./.
``/``
It/PRP
's/VBZ
a/DT
big-risk/JJ
business/NN
,/,
''/''
warns/VBZ
Charles/NNP
C./NNP
Mihalek/NNP
,/,
a/DT
Lexington/NNP
attorney/NN
and/CC
former/JJ
Kentucky/NNP
state/NN
securities/NNS
commissioner/NN
./.
``/``
You/PRP
have/VBP
to/TO
go/VB
into/IN
it/PRP
firmly/RB
believing/VBG
that/IN
it/PRP
's/VBZ
the/DT
kind/NN
of/IN
investment/NN
where/WRB
you/PRP
can/MD
lose/VB
everything/NN
./.
''/''
And/CC
many/JJ
have/VBP
done/VBN
just/RB
that/DT
./.
Consider/VB
Spendthrift/NNP
Farm/NNP
,/,
a/DT
prominent/JJ
Lexington/NNP
horse/NN
farm/NN
that/WDT
went/VBD
public/JJ
in/IN
1983/CD
but/CC
hit/VBD
hard/JJ
times/NNS
and/CC
filed/VBD
for/IN
bankruptcy-court/NN
protection/NN
last/JJ
year/NN
./.
A/DT
group/NN
of/IN
investors/NNS
recently/RB
bought/VBD
the/DT
remaining/VBG
assets/NNS
of/IN
Spendthrift/NNP
,/,
hoping/VBG
to/TO
rebuild/VB
it/PRP
./.
Other/JJ
investors/NNS
have/VBP
lost/VBN
millions/NNS
in/IN
partnerships/NNS
that/WDT
bought/VBD
thoroughbred/JJ
racehorses/NNS
or/CC
stallion/NN
breeding/NN
rights/NNS
./.
One/CD
big/JJ
problem/NN
has/VBZ
been/VBN
the/DT
thoroughbred/JJ
racehorse/NN
market/NN
./.
From/IN
1974/CD
to/TO
1984/CD
,/,
prices/NNS
for/IN
the/DT
best/JJS
yearlings/NNS
at/IN
the/DT
summer/NN
sales/NNS
rose/VBD
918/CD
%/NN
to/TO
an/DT
average/NN
of/IN
$/$
544,681/CD
./.
Since/IN
then/RB
,/,
prices/NNS
have/VBP
slumped/VBN
,/,
to/TO
an/DT
average/NN
of/IN
$/$
395,374/CD
this/DT
summer/NN
./.
But/CC
that/DT
's/VBZ
for/IN
the/DT
best/JJS
horses/NNS
,/,
with/IN
most/JJS
selling/VBG
for/IN
much/RB
less/JJR
--/:
as/RB
little/JJ
as/IN
$/$
100/CD
for/IN
some/DT
pedestrian/JJ
thoroughbreds/NNS
./.
Even/RB
while/IN
they/PRP
move/VBP
outside/IN
their/PRP$
traditional/JJ
tony/JJ
circle/NN
,/,
racehorse/NN
owners/NNS
still/RB
try/VBP
to/TO
capitalize/VB
on/IN
the/DT
elan/NN
of/IN
the/DT
sport/NN
./.
Glossy/JJ
brochures/NNS
circulated/VBN
at/IN
racetracks/NNS
gush/VBP
about/IN
the/DT
limelight/NN
of/IN
the/DT
winner/NN
's/POS
circle/NN
and/CC
high-society/NN
schmoozing/NN
./.
One/CD
handout/NN
promises/VBZ
:/:
``/``
Pedigrees/NNS
,/,
parties/NNS
,/,
post/NN
times/NNS
,/,
parimutuels/NNS
and/CC
pageantry/NN
./.
''/''
``/``
It/PRP
's/VBZ
just/RB
a/DT
matter/NN
of/IN
marketing/VBG
and/CC
promoting/VBG
ourselves/PRP
,/,
''/''
says/VBZ
Headley/NNP
Bell/NNP
,/,
a/DT
fifth-generation/JJ
horse/NN
breeder/NN
from/IN
Lexington/NNP
./.
Maybe/RB
it/PRP
's/VBZ
not/RB
that/RB
simple/NN
./.
For/IN
starters/NNS
,/,
racehorse/NN
buyers/NNS
have/VBP
to/TO
remember/VB
the/DT
basic/JJ
problem/NN
of/IN
such/JJ
ventures/NNS
:/:
These/DT
beasts/NNS
do/VBP
n't/RB
come/VB
with/IN
warranties/NNS
./.
And/CC
for/IN
every/DT
champion/NN
,/,
there/EX
are/VBP
plenty/RB
of/IN
nags/NNS
./.
Katherine/NNP
Voss/NNP
,/,
a/DT
veteran/JJ
trainer/NN
at/IN
the/DT
Laurel/NNP
,/,
Md./NNP
,/,
track/NN
,/,
offers/VBZ
neophytes/NNS
a/DT
sobering/JJ
tour/NN
of/IN
a/DT
horse/NN
barn/NN
,/,
noting/VBG
that/IN
only/RB
three/CD
of/IN
about/RB
a/DT
dozen/NN
horses/NNS
have/VBP
won/VBN
sizable/JJ
purses/NNS
./.
One/CD
brown/JJ
two-year-old/JJ
filly/NN
was/VBD
wheezing/VBG
from/IN
a/DT
cold/NN
,/,
while/IN
another/DT
had/VBD
splints/NNS
on/IN
its/PRP$
legs/NNS
,/,
keeping/VBG
both/DT
animals/NNS
from/IN
the/DT
racetrack/NN
./.
``/``
You/PRP
can/MD
see/VB
the/DT
highs/NNS
and/CC
lows/NNS
of/IN
the/DT
business/NN
all/DT
under/IN
one/CD
roof/NN
,/,
''/''
she/PRP
tells/VBZ
the/DT
group/NN
./.
``/``
There/EX
are/VBP
n't/RB
too/RB
many/JJ
winners/NNS
./.
''/''
Perhaps/RB
the/DT
biggest/JJS
hurdle/NN
owners/NNS
face/VBP
is/VBZ
convincing/VBG
newcomers/NNS
that/IN
this/DT
is/VBZ
a/DT
reputable/JJ
business/NN
./.
Some/DT
badly/RB
managed/VBN
partnerships/NNS
have/VBP
burned/VBN
investors/NNS
,/,
sometimes/RB
after/IN
they/PRP
received/VBD
advice/NN
from/IN
industry/NN
``/``
consultants/NNS
./.
''/''
So/RB
owners/NNS
have/VBP
developed/VBN
a/DT
``/``
code/NN
of/IN
ethics/NNS
,/,
''/''
outlining/VBG
rules/NNS
for/IN
consultants/NNS
and/CC
agents/NNS
,/,
and/CC
disclosure/NN
of/IN
fees/NNS
and/CC
any/DT
conflicts/NNS
of/IN
interest/NN
./.
But/CC
some/DT
are/VBP
skeptical/JJ
of/IN
the/DT
code/NN
's/POS
effectiveness/NN
./.
``/``
The/DT
industry/NN
is/VBZ
based/VBN
on/IN
individual/JJ
honesty/NN
,/,
''/''
says/VBZ
Cap/NNP
Hershey/NNP
,/,
a/DT
Lexington/NNP
horse/NN
farmer/NN
and/CC
one/CD
of/IN
the/DT
investors/NNS
who/WP
bought/VBD
Spendthrift/NNP
./.
Despite/IN
the/DT
drop/NN
in/IN
prices/NNS
for/IN
thoroughbreds/NNS
,/,
owning/VBG
one/CD
still/RB
is/VBZ
n't/RB
cheap/JJ
./.
At/IN
the/DT
low/JJ
end/NN
,/,
investors/NNS
can/MD
spend/VB
$/$
15,000/CD
or/CC
more/JJR
to/TO
own/VB
a/DT
racehorse/NN
in/IN
partnership/NN
with/IN
others/NNS
./.
At/IN
a/DT
yearling/JJ
sale/NN
,/,
a/DT
buyer/NN
can/MD
go/VB
solo/RB|JJ
and/CC
get/VB
a/DT
horse/NN
for/IN
a/DT
few/JJ
thousand/CD
dollars/NNS
./.
But/CC
that/DT
means/VBZ
paying/VBG
the/DT
horse/NN
's/POS
maintenance/NN
;/:
on/IN
average/NN
,/,
it/PRP
costs/VBZ
$/$
25,000/CD
a/DT
year/NN
to/TO
raise/VB
a/DT
horse/NN
./.
For/IN
those/DT
looking/VBG
for/IN
something/NN
between/IN
a/DT
minority/NN
stake/NN
and/CC
total/JJ
ownership/NN
,/,
the/DT
owners/NNS
'/POS
group/NN
is/VBZ
considering/VBG
a/DT
special/JJ
sale/NN
where/WRB
established/JJ
horse/NN
breeders/NNS
would/MD
sell/VB
a/DT
50/CD
%/NN
stake/NN
in/IN
horses/NNS
to/TO
newcomers/NNS
./.
BUELL/NNP
INDUSTRIES/NNP
Inc./NNP
halved/VBD
its/PRP$
quarterly/JJ
dividend/NN
to/TO
five/CD
cents/NNS
a/DT
share/NN
,/,
payable/JJ
Nov./NNP
17/CD
to/TO
stock/VB
of/IN
record/NN
Nov./NNP
3/CD
./.
The/DT
company/NN
's/POS
quarterly/JJ
dividend/NN
had/VBD
been/VBN
10/CD
cents/NNS
a/DT
share/NN
since/IN
April/NNP
30/CD
,/,
1988/CD
./.
Buell/NNP
recently/RB
said/VBD
it/PRP
would/MD
incur/VB
an/DT
aftertax/JJ
charge/NN
of/IN
about/RB
$/$
3.6/CD
million/CD
in/IN
its/PRP$
fourth/JJ
quarter/NN
ending/VBG
Tuesday/NNP
,/,
in/IN
connection/NN
with/IN
the/DT
sale/NN
and/CC
discontinuance/NN
of/IN
several/JJ
lines/NNS
at/IN
a/DT
plant/NN
./.
The/DT
Waterbury/NNP
,/,
Conn./NNP
,/,
maker/NN
of/IN
industrial/JJ
fasteners/NNS
and/CC
metal/NN
stampings/NNS
has/VBZ
2.3/CD
million/CD
shares/NNS
outstanding/JJ
./.
Dunkin/NNP
'/''
Donuts/NNP
Inc./NNP
,/,
battling/VBG
a/DT
takeover/NN
proposal/NN
by/IN
Canada/NNP
's/POS
DD/NNP
Acquisition/NNP
Corp./NNP
,/,
said/VBD
that/IN
its/PRP$
directors/NNS
will/MD
evaluate/VB
takeover/NN
offers/NNS
submitted/VBN
by/IN
Nov./NNP
10/CD
./.
Dunkin/NNP
'/''
Donuts/NNP
,/,
based/VBN
in/IN
Randolph/NNP
,/,
Mass./NNP
,/,
previously/RB
said/VBD
it/PRP
would/MD
explore/VB
``/``
alternatives/NNS
,/,
''/''
including/VBG
a/DT
leveraged/JJ
buy-out/NN
of/IN
the/DT
company/NN
,/,
but/CC
had/VBD
n't/RB
set/VBN
a/DT
date/NN
for/IN
submission/NN
of/IN
proposals/NNS
./.
Dunkin/NNP
'/''
Donuts/NNP
Chairman/NNP
and/CC
Chief/NNP
Executive/NNP
Robert/NNP
M./NNP
Rosenberg/NNP
said/VBD
``/``
a/DT
sale/NN
is/VBZ
one/CD
alternative/NN
being/VBG
considered/VBN
,/,
''/''
but/CC
he/PRP
added/VBD
the/DT
board/NN
has/VBZ
n't/RB
decided/VBD
whether/IN
to/TO
sell/VB
the/DT
doughnut/NN
franchiser/NN
./.
DD/NNP
Acquisition/NNP
,/,
jointly/RB
owned/VBN
by/IN
Unicorp/NNP
Canada/NNP
Corp./NNP
's/POS
Kingsbridge/NNP
Capital/NNP
Group/NNP
unit/NN
and/CC
Cara/NNP
Operations/NNP
Ltd./NNP
,/,
has/VBZ
made/VBN
a/DT
$/$
45-a-share/JJ
tender/NN
offer/NN
valued/VBN
at/IN
$/$
268/CD
million/CD
for/IN
Dunkin/NNP
'/''
Donuts/NNP
./.
Dunkin/NNP
'/''
Donuts/NNP
'/POS
announcement/NN
followed/VBD
DD/NNP
Acquisition/NNP
's/POS
request/NN
to/TO
the/DT
Delaware/NNP
Court/NNP
of/IN
Chancery/NNP
Monday/NNP
to/TO
set/VB
a/DT
trial/NN
date/NN
for/IN
its/PRP$
suit/NN
against/IN
the/DT
company/NN
./.
The/DT
trial/NN
had/VBD
been/VBN
postponed/VBN
to/TO
allow/VB
Dunkin/NNP
'/''
Donuts/NNP
to/TO
seek/VB
alternatives/NNS
to/TO
DD/NNP
Acquisition/NNP
's/POS
offer/NN
./.
Combustion/NNP
Engineering/NNP
Inc./NNP
said/VBD
third-quarter/JJ
net/JJ
income/NN
of/IN
$/$
22.8/CD
million/CD
,/,
reversing/VBG
a/DT
$/$
91.7/CD
million/CD
year-earlier/JJ
loss/NN
./.
The/DT
Stamford/NNP
,/,
Conn./NNP
,/,
power-generation/JJ
products/NNS
and/CC
services/NNS
company/NN
said/VBD
per-share/JJ
earnings/NNS
were/VBD
56/CD
cents/NNS
compared/VBN
with/IN
the/DT
year-ago/JJ
loss/NN
of/IN
$/$
2.39/CD
./.
Sales/NNS
fell/VBD
1.5/CD
%/NN
to/TO
$/$
884/CD
million/CD
from/IN
$/$
897.2/CD
million/CD
./.
Strong/JJ
profit/NN
in/IN
the/DT
process/NN
industries/NNS
,/,
including/VBG
chemical/NN
and/CC
pulp/NN
and/CC
paper/NN
,/,
were/VBD
offset/VBN
by/IN
higher/JJR
interest/NN
expense/NN
and/CC
by/IN
lower/JJR
earnings/NNS
as/IN
the/DT
company/NN
closed/VBN
out/RP
certain/JJ
long-term/JJ
contracts/NNS
./.
Combustion/NNP
reported/VBD
improved/JJ
profits/NNS
in/IN
its/PRP$
automation/NN
and/CC
control/NN
products/NNS
businesses/NNS
,/,
and/CC
it/PRP
narrowed/VBD
its/PRP$
losses/NNS
in/IN
its/PRP$
public/JJ
sector/NN
and/CC
environmental/JJ
segment/NN
./.
Power/NN
generation/NN
had/VBD
higher/JJR
sales/NNS
but/CC
lower/JJR
earnings/NNS
;/:
the/DT
company/NN
cited/VBD
factors/NNS
including/VBG
work/NN
on/IN
certain/JJ
low/JJ
profit-margin/NN
contracts/NNS
from/IN
previous/JJ
years/NNS
./.
Net/NN
in/IN
the/DT
latest/JJS
quarter/NN
included/VBD
a/DT
pretax/JJ
gain/NN
of/IN
$/$
22.4/CD
million/CD
from/IN
the/DT
sale/NN
of/IN
Combustion/NNP
's/POS
minority/NN
interest/NN
in/IN
Stein/NNP
Industrie/NNP
to/TO
GEC/NNP
Alsthom/NNP
N.V./NNP
of/IN
the/DT
Netherlands/NNP
./.
Last/JJ
year/NN
's/POS
results/NNS
reflected/VBD
a/DT
gain/NN
of/IN
$/$
28.2/CD
million/CD
on/IN
disposition/NN
of/IN
assets/NNS
and/CC
a/DT
$/$
165/CD
million/CD
pretax/JJ
provision/NN
mainly/RB
from/IN
costs/NNS
of/IN
completing/VBG
certain/JJ
waste-to-energy/JJ
and/CC
other/JJ
power/NN
plants/NNS
./.
Claude/NNP
Bebear/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
of/IN
Axa-Midi/NNP
Assurances/NNP
,/,
pledged/VBD
to/TO
retain/VB
employees/NNS
and/CC
management/NN
of/IN
Farmers/NNP
Group/NNP
Inc./NNP
,/,
including/VBG
Leo/NNP
E./NNP
Denlea/NNP
Jr./NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
if/IN
Axa/NNP
succeeds/VBZ
in/IN
acquiring/VBG
Farmers/NNP
./.
Mr./NNP
Bebear/NNP
added/VBD
that/IN
the/DT
French/JJ
insurer/NN
would/MD
keep/VB
Farmers/NNP
'/POS
headquarters/NN
in/IN
Los/NNP
Angeles/NNP
and/CC
``/``
will/MD
not/RB
send/VB
French/JJ
people/NNS
to/TO
run/VB
the/DT
company/NN
./.
''/''
Axa/NNP
would/MD
also/RB
maintain/VB
Farmers/NNP
'/POS
relationships/NNS
with/IN
the/DT
insurance/NN
exchanges/NNS
that/IN
it/PRP
manages/VBZ
./.
Mr./NNP
Bebear/NNP
made/VBD
his/PRP$
remarks/NNS
at/IN
a/DT
breakfast/NN
meeting/NN
with/IN
reporters/NNS
here/RB
yesterday/NN
as/IN
part/NN
of/IN
a/DT
tour/NN
in/IN
which/WDT
he/PRP
is/VBZ
trying/VBG
to/TO
rally/VB
support/NN
in/IN
the/DT
U.S./NNP
for/IN
the/DT
proposed/JJ
acquisition/NN
./.
The/DT
bid/NN
is/VBZ
part/NN
of/IN
Sir/NNP
James/NNP
Goldsmith/NNP
's/POS
unfriendly/JJ
takeover/NN
attempt/NN
for/IN
B.A.T/NNP
Industries/NNP
PLC/NNP
,/,
the/DT
British/JJ
tobacco/NN
,/,
retailing/NN
,/,
paper/NN
and/CC
financial-services/NNS
giant/NN
that/WDT
acquired/VBD
Farmers/NNP
last/JJ
year/NN
for/IN
$/$
5.2/CD
billion/CD
./.
Axa/NNP
has/VBZ
agreed/VBN
to/TO
acquire/VB
Farmers/NNP
from/IN
Sir/NNP
James/NNP
's/POS
investment/NN
vehicle/NN
,/,
Hoylake/NNP
Investments/NNP
Ltd./NNP
,/,
for/IN
$/$
4.5/CD
billion/CD
plus/IN
a/DT
$/$
1/CD
billion/CD
investment/NN
in/IN
Hoylake/NNP
./.
Any/DT
acquisition/NN
of/IN
Farmers/NNP
needs/VBZ
the/DT
approval/NN
of/IN
insurance/NN
commissioners/NNS
in/IN
the/DT
nine/CD
states/NNS
where/WRB
Farmers/NNP
operates/VBZ
,/,
and/CC
Mr./NNP
Bebear/NNP
's/POS
trip/NN
will/MD
take/VB
him/PRP
to/TO
Idaho/NNP
,/,
Arizona/NNP
and/CC
New/NNP
York/NNP
after/IN
his/PRP$
stay/NN
here/RB
;/:
he/PRP
will/MD
meet/VB
with/IN
insurance/NN
regulators/NNS
,/,
legislators/NNS
,/,
industry/NN
excutives/NNS
and/CC
the/DT
press/NN
./.
Hearings/NNS
on/IN
Axa/NNP
's/POS
acquisition/NN
application/NN
have/VBP
been/VBN
set/VBN
for/IN
Nov./NNP
13/CD
in/IN
Idaho/NNP
;/:
Nov./NNP
20/CD
in/IN
Illinois/NNP
;/:
Nov./NNP
24/CD
and/CC
Dec./NNP
4/CD
in/IN
Arizona/NNP
;/:
Dec./NNP
11/CD
in/IN
Washington/NNP
state/NN
;/:
and/CC
Jan./VB
8/CD
in/IN
Oregon/NN
./.
Hearings/NNS
have/VBP
n't/RB
yet/RB
been/VBN
set/VBN
in/IN
Texas/NNP
,/,
Ohio/NNP
and/CC
Kansas/NNP
./.
California/NNP
's/POS
insurance/NN
commissioner/NN
does/VBZ
n't/RB
hold/VB
hearings/NNS
on/IN
acquisition/NN
applications/NNS
./.
Although/IN
Axa/NNP
has/VBZ
been/VBN
rebuffed/VBN
by/IN
Farmers/NNS
and/CC
has/VBZ
n't/RB
had/VBD
any/DT
meetings/NNS
with/IN
management/NN
,/,
Mr./NNP
Bebear/NNP
nonetheless/RB
appears/VBZ
to/TO
be/VB
trying/VBG
to/TO
woo/VB
the/DT
company/NN
's/POS
executives/NNS
with/IN
promises/NNS
of/IN
autonomy/NN
and/CC
new-found/JJ
authority/NN
under/IN
Axa/NNP
./.
He/PRP
said/VBD
Mr./NNP
Denlea/NNP
would/MD
be/VB
a/DT
member/NN
of/IN
the/DT
top/JJ
management/NN
team/NN
of/IN
the/DT
Axa-Midi/NNP
group/NN
of/IN
companies/NNS
,/,
and/CC
would/MD
``/``
help/VB
define/VB
policies/NNS
and/CC
strategies/NNS
of/IN
the/DT
group/NN
./.
''/''
Farmers/NNP
was/VBD
quick/JJ
yesterday/NN
to/TO
point/VB
out/RP
the/DT
many/JJ
negative/JJ
aspects/NNS
it/PRP
sees/VBZ
in/IN
having/VBG
Axa/NNP
as/IN
its/PRP$
parent/NN
./.
For/IN
one/CD
,/,
Axa/NNP
plans/VBZ
to/TO
do/VB
away/RB
with/IN
certain/JJ
tax/NN
credits/NNS
that/WDT
have/VBP
resulted/VBN
in/IN
more/JJR
than/IN
$/$
600/CD
million/CD
paid/VBD
to/TO
the/DT
Farmers/NNP
exchanges/NNS
during/IN
the/DT
past/JJ
few/JJ
years/NNS
to/TO
offset/VB
underwriting/NN
losses/NNS
./.
Those/DT
credits/NNS
result/VBP
because/IN
of/IN
taxes/NNS
that/WDT
Farmers/NNP
,/,
as/IN
the/DT
management/NN
company/NN
,/,
has/VBZ
paid/VBN
,/,
and/CC
have/VBP
``/``
proved/VBN
to/TO
be/VB
very/RB
important/JJ
for/IN
the/DT
exchanges/NNS
,/,
''/''
a/DT
Farmers/NNP
spokesman/NN
said/VBD
./.
Mr./NNP
Bebear/NNP
contended/VBD
that/IN
the/DT
tax/NN
cost/NN
to/TO
the/DT
exchanges/NNS
under/IN
the/DT
revised/JJ
structure/NN
would/MD
be/VB
about/RB
$/$
8/CD
million/CD
a/DT
year/NN
,/,
which/WDT
he/PRP
described/VBD
as/IN
``/``
peanuts/NNS
./.
''/''
Honeywell/NNP
Inc./NNP
,/,
Minneapolis/NNP
,/,
said/VBD
it/PRP
completed/VBD
its/PRP$
previously/RB
announced/VBN
sale/NN
of/IN
16/CD
%/NN
of/IN
the/DT
shares/NNS
outstanding/JJ
in/IN
its/PRP$
Japanese/JJ
joint/JJ
venture/NN
,/,
Yamatake-Honeywell/NNP
,/,
for/IN
$/$
280/CD
million/CD
./.
The/DT
stake/NN
was/VBD
acquired/VBN
by/IN
a/DT
group/NN
of/IN
10/CD
Japanese/JJ
financial/JJ
institutions/NNS
and/CC
industrial/JJ
corporations/NNS
,/,
primarily/RB
insurance/NN
companies/NNS
,/,
Honeywell/NNP
said/VBD
./.
Proceeds/NNS
will/MD
be/VB
used/VBN
to/TO
repurchase/VBD
as/RB
many/JJ
as/IN
10/CD
million/CD
shares/NNS
of/IN
Honeywell/NNP
stock/NN
,/,
as/RB
previously/RB
announced/VBN
./.
Honeywell/NNP
said/VBD
a/DT
second/JJ
sale/NN
of/IN
Yamatake-Honeywell/NNP
is/VBZ
still/RB
being/VBG
negotiated/VBN
./.
The/DT
company/NN
,/,
which/WDT
now/RB
holds/VBZ
a/DT
34/CD
%/NN
stake/NN
in/IN
the/DT
venture/NN
,/,
has/VBZ
indicated/VBN
that/IN
it/PRP
intends/VBZ
to/TO
retain/VB
at/IN
least/JJS
a/DT
20/CD
%/NN
stake/NN
long/JJ
term/NN
./.
A/DT
20/CD
%/NN
stake/NN
would/MD
allow/VB
Honeywell/NNP
to/TO
include/VB
Yamatake/NNP
earnings/NNS
in/IN
its/PRP$
results/NNS
./.
A/DT
company/NN
spokesman/NN
said/VBD
the/DT
gain/NN
on/IN
the/DT
sale/NN
could/MD
n't/RB
be/VB
estimated/VBN
until/IN
the/DT
``/``
tax/NN
treatment/NN
has/VBZ
been/VBN
determined/VBN
./.
''/''
OPPENHEIMER/NNP
CAPITAL/NNP
LIMITED/NNP
PARTNERSHIP/NNP
increased/VBD
the/DT
quarterly/JJ
distribution/NN
to/TO
40/CD
cents/NNS
a/DT
limited/JJ
partnership/NN
unit/NN
from/IN
36.25/CD
cents/NNS
./.
The/DT
distribution/NN
represents/VBZ
available/JJ
cash/NN
flow/NN
from/IN
the/DT
partnership/NN
between/IN
Aug./NNP
1/CD
and/CC
Oct./NNP
31/CD
./.
It/PRP
is/VBZ
payable/JJ
Nov./NNP
30/CD
to/TO
units/NNS
of/IN
record/NN
Oct./NNP
31/CD
./.
The/DT
money/NN
manager/NN
is/VBZ
controlled/VBN
67.7/CD
%/NN
by/IN
its/PRP$
top/JJ
officers/NNS
and/CC
top/JJ
officers/NNS
of/IN
Oppenheimer/NNP
&/CC
Co./NNP
,/,
a/DT
securities/NNS
firm/NN
./.
Both/DT
firms/NNS
are/VBP
in/IN
New/NNP
York/NNP
./.
Oppenheimer/NNP
Capital/NNP
has/VBZ
about/RB
7.9/CD
million/CD
limited/JJ
partnership/NN
units/NNS
outstanding/JJ
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
the/DT
units/NNS
closed/VBD
at/IN
$/$
15.125/CD
,/,
up/RB
12.5/CD
cents/NNS
./.
Bank/NNP
of/IN
Montreal/NNP
said/VBD
it/PRP
added/VBD
850/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
725.8/CD
million/CD
its/PRP$
reserves/NNS
against/IN
losses/NNS
on/IN
Third/NNP
World/NNP
loans/NNS
,/,
bringing/VBG
the/DT
total/NN
it/PRP
has/VBZ
set/VBN
aside/RP
this/DT
year/NN
to/TO
C$/$
1/CD
billion/CD
./.
The/DT
bank/NN
said/VBD
the/DT
C$/$
1/CD
billion/CD
in/IN
reserves/NNS
will/MD
result/VB
in/IN
a/DT
charge/NN
of/IN
C$/$
595/CD
million/CD
against/IN
earnings/NNS
but/CC
said/VBD
it/PRP
still/RB
expects/VBZ
to/TO
report/VB
a/DT
profit/NN
for/IN
the/DT
year/NN
ending/VBG
Tuesday/NNP
./.
The/DT
bank/NN
reported/VBD
net/JJ
income/NN
of/IN
C$/$
389/CD
million/CD
for/IN
the/DT
nine/CD
months/NNS
ended/VBN
July/NNP
31/CD
./.
The/DT
bank/NN
said/VBD
the/DT
increase/NN
in/IN
loan-loss/JJ
provisions/NNS
wo/MD
n't/RB
affect/VB
the/DT
payment/NN
of/IN
dividends/NNS
./.
The/DT
bank/NN
said/VBD
reserves/NNS
now/RB
amount/VB
to/TO
61/CD
%/NN
of/IN
its/PRP$
total/JJ
less-developed-country/JJ
exposure/NN
./.
Excluding/VBG
Mexico/NNP
,/,
reserves/NNS
equal/VBP
95/CD
%/NN
of/IN
LDC/NNP
exposure/NN
./.
In/IN
Toronto/NNP
Stock/NNP
Exchange/NNP
trading/NN
,/,
Bank/NNP
of/IN
Montreal/NNP
closed/VBD
at/IN
C$/$
33.25/CD
,/,
up/RP
87.5/CD
Canadian/JJ
cents/NNS
./.
Knight-Ridder/NNP
Inc./NNP
said/VBD
third-quarter/JJ
earnings/NNS
jumped/VBD
18/CD
%/NN
,/,
partly/RB
because/IN
of/IN
the/DT
sale/NN
of/IN
two/CD
of/IN
its/PRP$
media/NNS
properties/NNS
./.
The/DT
media/NNS
concern/NN
said/VBD
net/JJ
income/NN
rose/VBD
to/TO
$/$
37.8/CD
million/CD
,/,
or/CC
72/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
32/CD
million/CD
,/,
or/CC
57/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
year-earlier/JJ
period/NN
./.
The/DT
latest/JJS
results/NNS
include/VBP
a/DT
gain/NN
of/IN
$/$
4.2/CD
million/CD
,/,
or/CC
eight/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
the/DT
sale/NN
of/IN
television/NN
stations/NNS
in/IN
Oklahoma/NNP
City/NNP
and/CC
Flint/NNP
,/,
Mich/NNP
./.
Revenue/NN
increased/VBD
7.5/CD
%/NN
to/TO
$/$
540.9/CD
million/CD
from/IN
$/$
503.1/CD
million/CD
./.
Robert/NNP
F./NNP
Singleton/NNP
,/,
Knight-Ridder/NNP
's/POS
chief/JJ
financial/JJ
officer/NN
,/,
said/VBD
the/DT
company/NN
was/VBD
``/``
pleased/JJ
''/''
with/IN
its/PRP$
overall/JJ
performance/NN
,/,
despite/IN
only/JJ
single-digit/JJ
growth/NN
in/IN
newspaper/NN
revenue/NN
./.
That/DT
division/NN
's/POS
revenue/NN
rose/VBD
2.3/CD
%/NN
to/TO
$/$
472.5/CD
million/CD
from/IN
$/$
461.9/CD
million/CD
in/IN
the/DT
year-ago/JJ
period/NN
./.
Gains/NNS
in/IN
advertising/NN
revenue/NN
,/,
however/RB
,/,
resulted/VBD
in/IN
operating/NN
profit/NN
of/IN
$/$
78.4/CD
million/CD
--/:
up/RB
20/CD
%/NN
from/IN
$/$
65.6/CD
million/CD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Knight/NNP
Ridder/NNP
closed/VBD
at/IN
$/$
51.50/CD
a/DT
share/NN
,/,
down/RB
12.5/CD
cents/NNS
./.
ALBERTA/NNP
ENERGY/NNP
Co./NNP
,/,
Calgary/NNP
,/,
said/VBD
it/PRP
filed/VBD
a/DT
preliminary/JJ
prospectus/NN
for/IN
an/DT
offering/NN
of/IN
common/JJ
shares/NNS
./.
The/DT
natural/JJ
resources/NNS
development/NN
concern/NN
said/VBD
proceeds/NNS
will/MD
be/VB
used/VBN
to/TO
repay/VB
long-term/JJ
debt/NN
,/,
which/WDT
stood/VBD
at/IN
598/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
510.6/CD
million/CD
the/DT
end/NN
of/IN
1988/CD
./.
The/DT
company/NN
plans/VBZ
to/TO
raise/VB
between/IN
C$/$
75/CD
million/CD
and/CC
C$/$
100/CD
million/CD
from/IN
the/DT
offering/NN
,/,
according/VBG
to/TO
a/DT
spokeswoman/NN
at/IN
Richardson/NNP
Greenshields/NNP
of/IN
Canada/NNP
Ltd./NNP
,/,
lead/JJ
underwriter/NN
./.
The/DT
shares/NNS
will/MD
be/VB
priced/VBN
in/IN
early/JJ
November/NNP
,/,
she/PRP
said/VBD
./.
General/NNP
Electric/NNP
Co./NNP
executives/NNS
and/CC
lawyers/NNS
provided/VBD
``/``
misleading/JJ
and/CC
false/JJ
''/''
information/NN
to/TO
the/DT
Pentagon/NNP
in/IN
1985/CD
in/IN
an/DT
effort/NN
to/TO
cover/VB
up/RP
``/``
longstanding/JJ
fraudulent/JJ
''/''
billing/NN
practices/NNS
,/,
federal/JJ
prosecutors/NNS
alleged/VBN
in/IN
legal/JJ
briefs/NNS
./.
The/DT
government/NN
's/POS
startling/JJ
allegations/NNS
,/,
filed/VBN
only/JJ
days/NNS
before/IN
the/DT
scheduled/JJ
start/NN
of/IN
a/DT
criminal/JJ
overcharge/NN
trial/NN
against/IN
GE/NNP
in/IN
Philadelphia/NNP
federal/JJ
district/NN
court/NN
,/,
challenge/VBP
the/DT
motives/NNS
and/CC
veracity/NN
of/IN
the/DT
nation/NN
's/POS
third-largest/JJ
defense/NN
contractor/NN
./.
In/IN
a/DT
strongly/RB
worded/VBN
response/NN
summarizing/VBG
a/DT
filing/NN
made/VBN
in/IN
the/DT
same/JJ
court/NN
yesterday/NN
,/,
GE/NNP
asserted/VBD
that/IN
``/``
prosecutors/NNS
have/VBP
misstated/VBN
the/DT
testimony/NN
of/IN
witnesses/NNS
,/,
distorted/VBN
documents/NNS
and/CC
ignored/VBN
important/JJ
facts/NNS
./.
''/''
The/DT
company/NN
attacked/VBD
the/DT
government/NN
's/POS
allegations/NNS
as/IN
``/``
reckless/JJ
and/CC
baseless/JJ
mudslinging/NN
,/,
''/''
and/CC
said/VBD
its/PRP$
management/NN
``/``
promptly/RB
and/CC
accurately/RB
reported/VBD
''/''
to/TO
the/DT
Pentagon/NNP
all/DT
relevant/JJ
information/NN
about/IN
billing/NN
practices/NNS
./.
The/DT
case/NN
strikes/VBZ
at/IN
the/DT
corporate/JJ
image/NN
of/IN
GE/NNP
,/,
which/WDT
provides/VBZ
the/DT
military/JJ
with/IN
everything/NN
from/IN
jet/NN
engines/NNS
and/CC
electronic/JJ
warfare/NN
equipment/NN
to/TO
highly/RB
classified/JJ
design/NN
work/NN
on/IN
the/DT
Strategic/NNP
Defense/NNP
Initiative/NNP
,/,
and/CC
could/MD
cause/VB
a/DT
loss/NN
of/IN
future/JJ
defense/NN
contracts/NNS
if/IN
Pentagon/NNP
and/CC
Justice/NNP
Department/NNP
officials/NNS
take/VBP
a/DT
tough/JJ
stance/NN
./.
The/DT
company/NN
has/VBZ
been/VBN
considered/VBN
an/DT
industry/NN
leader/NN
in/IN
advocating/VBG
cooperation/NN
and/CC
voluntary/JJ
disclosures/NNS
of/IN
improper/JJ
or/CC
inflated/JJ
billing/NN
practices/NNS
./.
But/CC
the/DT
government/NN
now/RB
claims/VBZ
that/IN
a/DT
group/NN
of/IN
company/NN
managers/NNS
and/CC
lawyers/NNS
engaged/VBD
in/IN
an/DT
elaborate/JJ
strategy/NN
over/IN
five/CD
years/NNS
to/TO
obscure/VB
from/IN
federal/JJ
authorities/NNS
the/DT
extent/NN
and/CC
details/NNS
of/IN
``/``
widespread/JJ
''/''
fraudulent/JJ
billing/NN
practices/NNS
./.
The/DT
problems/NNS
were/VBD
uncovered/VBN
during/IN
a/DT
series/NN
of/IN
internal/JJ
investigations/NNS
of/IN
the/DT
company/NN
's/POS
Space/NNP
Systems/NNP
division/NN
,/,
which/WDT
has/VBZ
been/VBN
the/DT
focus/NN
of/IN
two/CD
separate/JJ
overcharge/NN
prosecutions/NNS
by/IN
the/DT
government/NN
since/IN
1985/CD
./.
The/DT
dispute/NN
stems/VBZ
from/IN
pretrial/JJ
maneuvering/NN
in/IN
the/DT
pending/VBG|JJ
court/NN
case/NN
,/,
in/IN
which/WDT
prosecutors/NNS
have/VBP
been/VBN
demanding/VBG
access/NN
to/TO
a/DT
host/NN
of/IN
internal/JJ
company/NN
memos/NNS
,/,
reports/NNS
and/CC
documents/NNS
./.
Last/JJ
November/NNP
,/,
a/DT
federal/JJ
grand/JJ
jury/NN
indicted/VBD
GE/NNP
on/IN
charges/NNS
of/IN
fraud/NN
and/CC
false/JJ
claims/NNS
in/IN
connection/NN
with/IN
an/DT
alleged/JJ
scheme/NN
to/TO
defraud/VB
the/DT
Army/NNP
of/IN
$/$
21/CD
million/CD
on/IN
a/DT
logistics/NNS
computer/NN
contract/NN
./.
The/DT
company/NN
,/,
for/IN
its/PRP$
part/NN
,/,
maintains/VBZ
that/IN
many/JJ
of/IN
the/DT
disputed/JJ
documents/NNS
are/VBP
privileged/JJ
attorney-client/JJ
communications/NNS
that/WDT
should/MD
n't/RB
be/VB
turned/VBN
over/RP
to/TO
prosecutors/NNS
./.
A/DT
hearing/NN
is/VBZ
scheduled/VBN
on/IN
the/DT
issue/NN
today/NN
./.
The/DT
government/NN
's/POS
136-page/JJ
filing/NN
covers/VBZ
events/NNS
leading/VBG
up/IN
to/TO
the/DT
current/JJ
case/NN
and/CC
an/DT
earlier/JJR
indictment/NN
in/IN
March/NNP
1985/CD
,/,
when/WRB
GE/NNP
was/VBD
accused/VBN
of/IN
defrauding/VBG
the/DT
Pentagon/NNP
by/IN
illegally/RB
claiming/VBG
cost/NN
overruns/NNS
on/IN
Minuteman/NNP
missile/NN
contracts/NNS
./.
GE/NNP
pleaded/VBD
guilty/JJ
and/CC
paid/VBD
a/DT
fine/JJ
of/IN
more/JJR
than/IN
$/$
1/CD
million/CD
in/IN
the/DT
Minuteman/NNP
case/NN
,/,
which/WDT
involved/VBD
some/DT
of/IN
the/DT
same/JJ
individuals/NNS
and/CC
operations/NNS
that/WDT
are/VBP
at/IN
the/DT
center/NN
of/IN
the/DT
dispute/NN
in/IN
the/DT
Philadelphia/NNP
court/NN
./.
In/IN
order/NN
to/TO
show/VB
that/IN
all/DT
of/IN
its/PRP$
units/NNS
had/VBD
corrected/VBN
billing/NN
problems/NNS
and/CC
therefore/RB
should/MD
become/VB
eligible/NN
again/RB
for/IN
new/JJ
contracts/NNS
,/,
prosecutors/NNS
contend/VBP
that/IN
``/``
high-level/JJ
GE/NNP
executives/NNS
''/''
and/CC
company/NN
lawyers/NNS
provided/VBD
``/``
misleading/JJ
statements/NNS
''/''
to/TO
then-Air/JJ|NNP
Force/NNP
Secretary/NNP
Verne/NNP
Orr/NNP
and/CC
other/JJ
Pentagon/NNP
officials/NNS
during/IN
a/DT
series/NN
of/IN
meetings/NNS
in/IN
1985/CD
./.
Overall/RB
,/,
the/DT
government/NN
contends/VBZ
that/IN
GE/NNP
's/POS
disclosure/NN
efforts/NNS
largely/RB
were/VBD
intended/VBN
to/TO
``/``
curry/VB
favor/NN
''/''
with/IN
Pentagon/NNP
officials/NNS
without/IN
detailing/VBG
the/DT
extent/NN
of/IN
the/DT
management/NN
lapses/NNS
and/CC
allegedly/RB
pervasive/JJ
billing/NN
irregularities/NNS
uncovered/VBN
by/IN
company/NN
investigations/NNS
./.
Prosecutors/NNS
depict/VBP
a/DT
company/NN
that/WDT
allegedly/RB
sat/VBD
on/IN
damaging/JJ
evidence/NN
of/IN
overcharges/NNS
from/IN
1983/CD
to/TO
1985/CD
,/,
despite/IN
warnings/NNS
from/IN
an/DT
internal/JJ
auditor/NN
./.
When/WRB
GE/NNP
finally/RB
disclosed/VBD
the/DT
problems/NNS
,/,
prosecutors/NNS
contend/VBP
that/IN
Mr./NNP
Orr/NNP
``/``
was/VBD
erroneously/RB
informed/VBN
that/IN
the/DT
practices/NNS
had/VBD
only/RB
just/RB
been/VBN
discovered/VBN
''/''
by/IN
GE/NNP
management/NN
./.
In/IN
its/PRP$
brief/NN
,/,
the/DT
government/NN
asserted/VBD
that/IN
it/PRP
needs/VBZ
the/DT
internal/JJ
GE/NNP
documents/NNS
to/TO
rebut/VB
anticipated/JJ
efforts/NNS
by/IN
GE/NNP
during/IN
the/DT
trial/NN
to/TO
demonstrate/VB
``/``
its/PRP$
good/JJ
corporate/JJ
character/NN
./.
''/''
GE/NNP
,/,
which/WDT
was/VBD
surprised/JJ
by/IN
the/DT
last-minute/JJ
subpoena/NN
for/IN
more/JJR
than/IN
100/CD
boxes/NNS
and/CC
file/NN
cabinets/NNS
of/IN
documents/NNS
,/,
countered/VBD
that/IN
senior/JJ
GE/NNP
managers/NNS
did/VBD
n't/RB
find/VB
out/RP
about/IN
questionable/JJ
billing/NN
practices/NNS
until/IN
1985/CD
,/,
and/CC
that/IN
the/DT
information/NN
was/VBD
passed/VBN
on/RP
quickly/RB
to/TO
Mr./NNP
Orr/NNP
at/IN
his/PRP$
first/JJ
meeting/NN
with/IN
company/NN
representatives/NNS
./.
Subsequent/JJ
meetings/NNS
,/,
initiated/VBN
after/IN
the/DT
company/NN
and/CC
two/CD
of/IN
its/PRP$
units/NNS
were/VBD
briefly/NN
suspended/VBN
from/IN
federal/JJ
contracts/NNS
,/,
were/VBD
held/VBN
to/TO
familiarize/VB
Mr./NNP
Orr/NNP
with/IN
the/DT
company/NN
's/POS
self-policing/JJ
procedures/NNS
and/CC
to/TO
disclose/VB
additional/JJ
information/NN
,/,
according/VBG
to/TO
GE/NNP
./.
GE/NNP
's/POS
filing/NN
contends/VBZ
that/IN
the/DT
billing/NN
practices/NNS
at/IN
the/DT
heart/NN
of/IN
the/DT
current/JJ
controversy/NN
involved/VBD
technical/JJ
disputes/NNS
rather/RB
than/IN
criminal/JJ
activity/NN
./.
The/DT
company/NN
's/POS
conduct/NN
``/``
does/VBZ
not/RB
even/RB
raise/VB
a/DT
question/NN
of/IN
wrongful/JJ
corporate/JJ
intent/NN
,/,
ratification/NN
or/CC
cover-up/NN
,/,
''/''
GE/NNP
's/POS
brief/NN
asserts/VBZ
./.
``/``
On/IN
the/DT
contrary/NN
,/,
it/PRP
shows/VBZ
a/DT
corporation/NN
reacting/VBG
swiftly/RB
and/CC
aggressively/RB
to/TO
very/RB
difficult/JJ
issues/NNS
in/IN
largely/RB
uncharted/JJ
waters/NNS
./.
''/''
Mr./NNP
Orr/NNP
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
yesterday/NN
./.
Applied/NNP
Solar/NNP
Energy/NNP
Corp./NNP
of/IN
City/NNP
of/IN
Industry/NNP
,/,
Calif./NNP
,/,
said/VBD
it/PRP
and/CC
its/PRP$
majority/NN
shareholder/NN
,/,
American/NNP
Cyanamid/NNP
Co./NNP
,/,
signed/VBD
a/DT
non-binding/JJ
letter/NN
of/IN
intent/NN
for/IN
the/DT
acquisition/NN
of/IN
Applied/NNP
Solar/NNP
by/IN
McDonnell/NNP
Douglas/NNP
Corp./NNP
for/IN
about/RB
$/$
38/CD
million/CD
./.
The/DT
proposed/JJ
acquisition/NN
provides/VBZ
for/IN
a/DT
cash/NN
payment/NN
of/IN
$/$
10/CD
a/DT
share/NN
at/IN
closing/NN
and/CC
a/DT
contingent/JJ
payment/NN
of/IN
as/RB
much/JJ
as/IN
80/CD
cents/NNS
a/DT
share/NN
placed/VBN
in/IN
escrow/NN
./.
Details/NNS
of/IN
the/DT
escrow/NN
agreement/NN
have/VBP
n't/RB
been/VBN
completed/VBN
,/,
the/DT
companies/NNS
said/VBD
./.
There/EX
are/VBP
3.5/CD
million/CD
shares/NNS
of/IN
Applied/NNP
Solar/NNP
,/,
of/IN
which/WDT
American/NNP
Cyanamid/NNP
owns/VBZ
2.7/CD
million/CD
./.
American/NNP
Cyanamid/NNP
is/VBZ
a/DT
Wayne/NNP
,/,
N.J./NNP
,/,
chemicals/NNS
,/,
drugs/NNS
and/CC
fertilizer/NN
concern/NN
./.
Completion/NN
of/IN
the/DT
acquisition/NN
is/VBZ
subject/JJ
to/TO
execution/NN
of/IN
a/DT
definitive/JJ
agreement/NN
,/,
approval/NN
by/IN
all/DT
three/CD
companies/NNS
'/POS
boards/NNS
and/CC
the/DT
approval/NN
of/IN
Applied/NNP
Solar/NNP
's/POS
shareholders/NNS
./.
An/DT
Applied/NNP
Solar/NNP
spokesman/NN
said/VBD
completion/NN
is/VBZ
expected/VBN
at/IN
the/DT
end/NN
of/IN
the/DT
year/NN
or/CC
early/RB
next/JJ
year/NN
./.
A/DT
spokeswoman/NN
for/IN
the/DT
St./NNP
Louis/NNP
aerospace/NN
and/CC
defense/NN
concern/NN
said/VBD
it/PRP
wanted/VBD
the/DT
acquistion/NN
because/IN
Applied/NNP
Solar/NNP
is/VBZ
involved/VBN
in/IN
solar/JJ
cells/NNS
and/CC
solid-state/JJ
laser/NN
components/NNS
,/,
and/CC
this/DT
fits/VBZ
with/IN
McDonnell/NNP
's/POS
business/NN
of/IN
laser/NN
applications/NNS
for/IN
military/JJ
space/NN
./.
Trading/NN
in/IN
Cineplex/NNP
Odeon/NNP
Corp./NNP
shares/NNS
was/VBD
halted/VBN
on/IN
the/DT
New/NNP
York/NNP
and/CC
Toronto/NNP
stock/NN
exchanges/NNS
late/RB
yesterday/NN
afternoon/NN
at/IN
the/DT
company/NN
's/POS
request/NN
,/,
Toronto/NNP
Stock/NNP
Exchange/NNP
officials/NNS
said/VBD
./.
Brian/NNP
Hemming/NNP
,/,
a/DT
spokesman/NN
for/IN
the/DT
company/NN
's/POS
committee/NN
of/IN
independent/JJ
directors/NNS
,/,
established/VBN
in/IN
May/NNP
to/TO
solicit/VB
and/CC
evaluate/VB
offers/NNS
for/IN
the/DT
company/NN
,/,
said/VBD
it/PRP
was/VBD
expected/VBN
to/TO
make/VB
an/DT
announcement/NN
early/RB
this/DT
morning/NN
./.
But/CC
Mr./NNP
Hemming/NNP
said/VBD
he/PRP
was/VBD
n't/RB
aware/JJ
of/IN
the/DT
nature/NN
of/IN
the/DT
talks/NNS
under/IN
way/NN
between/IN
committee/NN
members/NNS
and/CC
their/PRP$
advisers/NNS
./.
Cineplex/NNP
traded/VBD
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
at/IN
$/$
11.25/CD
a/DT
share/NN
,/,
up/RB
$/$
1.125/CD
,/,
before/IN
trading/NN
was/VBD
halted/VBN
./.
Analysts/NNS
have/VBP
speculated/VBN
in/IN
recent/JJ
days/NNS
that/IN
the/DT
value/NN
of/IN
offers/NNS
received/VBN
by/IN
the/DT
committee/NN
fell/VBD
well/RB
short/RB
of/IN
what/WP
they/PRP
had/VBD
hoped/VBN
,/,
or/CC
even/RB
that/IN
the/DT
company/NN
's/POS
chairman/NN
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
Garth/NNP
Drabinsky/NNP
,/,
is/VBZ
the/DT
only/JJ
bidder/NN
for/IN
the/DT
company/NN
as/IN
a/DT
whole/NN
./.
The/DT
current/JJ
effort/NN
to/TO
auction/VB
off/RP
the/DT
company/NN
was/VBD
triggered/VBN
by/IN
a/DT
dispute/NN
between/IN
Mr./NNP
Drabinsky/NNP
and/CC
the/DT
Toronto-based/JJ
movie/NN
chain/NN
's/POS
major/JJ
shareholder/NN
,/,
MCA/NNP
Inc/NNP
./.
London/NNP
share/NN
prices/NNS
closed/VBD
sharply/RB
lower/JJR
Tuesday/NNP
on/IN
the/DT
back/NN
of/IN
Wall/NNP
Street/NNP
's/POS
steep/JJ
drop/NN
and/CC
renewed/JJ
fears/NNS
over/IN
U.K./NNP
economic/JJ
fundamentals/NNS
./.
Tokyo/NNP
's/POS
winning/NN
streak/NN
came/VBD
to/TO
an/DT
end/NN
,/,
and/CC
stocks/NNS
fell/VBD
in/IN
Frankfurt/NNP
and/CC
across/IN
Europe/NNP
as/RB
well/RB
./.
London/NNP
's/POS
Financial/NNP
Times/NNP
100-share/JJ
index/NN
shed/VBD
40.4/CD
points/NNS
to/TO
finish/VB
at/IN
2149.3/CD
./.
At/IN
London/NNP
's/POS
close/NN
,/,
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
was/VBD
51.23/CD
points/NNS
lower/JJR
at/IN
2611.68/CD
./.
Dealers/NNS
said/VBD
the/DT
initial/JJ
pressure/NN
came/VBD
from/IN
mildly/RB
disappointing/JJ
U.K./NNP
trade/NN
figures/NNS
for/IN
September/NNP
and/CC
a/DT
worrisome/JJ
report/NN
by/IN
the/DT
Confederation/NNP
of/IN
British/NNP
Industry/NNP
that/IN
a/DT
decline/NN
in/IN
orders/NNS
for/IN
manufactured/JJ
goods/NNS
is/VBZ
depressing/VBG
both/DT
business/NN
optimism/NN
and/CC
investment/NN
plans/NNS
for/IN
the/DT
coming/JJ
year/NN
./.
The/DT
trade/NN
and/CC
CBI/NNP
reports/NNS
refocused/VBD
attention/NN
on/IN
high/JJ
interest/NN
rates/NNS
and/CC
corporate/JJ
profitability/NN
and/CC
helped/VBD
rekindle/VB
underlying/JJ
concerns/NNS
over/IN
prospects/NNS
for/IN
a/DT
recession/NN
in/IN
the/DT
U.K./NNP
,/,
dealers/NNS
said/VBD
./.
The/DT
30-share/JJ
index/NN
fell/VBD
33.3/CD
points/NNS
to/TO
1739.3/CD
./.
Volume/NN
was/VBD
a/DT
modest/JJ
405.4/CD
million/CD
shares/NNS
traded/VBN
,/,
but/CC
better/JJR
than/IN
the/DT
year/NN
's/POS
lowest/JJS
turnover/NN
of/IN
276.8/CD
million/CD
Monday/NNP
./.
Market/NN
watchers/NNS
also/RB
noted/VBD
an/DT
absence/NN
of/IN
institutional/JJ
interest/NN
later/RB
in/IN
the/DT
session/NN
helped/VBD
pave/VB
the/DT
way/NN
for/IN
broader/JJR
declines/NNS
when/WRB
Wall/NNP
Street/NNP
opened/VBD
weaker/JJR
./.
They/PRP
added/VBD
that/IN
market-makers/NNS
were/VBD
knocking/VBG
share/NN
prices/NNS
down/RP
in/IN
midafternoon/NN
in/IN
a/DT
bid/NN
to/TO
attract/VB
some/DT
interest/NN
,/,
but/CC
the/DT
action/NN
largely/RB
helped/VBD
open/VB
the/DT
way/NN
for/IN
London/NNP
's/POS
late/JJ
declines/NNS
./.
Insurance/NN
stocks/NNS
provided/VBD
some/DT
early/JJ
support/NN
to/TO
the/DT
market/NN
,/,
partly/RB
on/IN
favorable/JJ
brokerage/NN
recommendatons/NNS
and/CC
talk/NN
of/IN
continental/JJ
European/JJ
interest/NN
in/IN
British/JJ
life/NN
and/CC
composite/JJ
insurers/NNS
./.
British/JJ
life/NN
insurer/NN
London/NNP
&/CC
General/NNP
,/,
which/WDT
firmed/VBD
2/CD
pence/NNS
to/TO
356/CD
pence/NN
$/$
5.70/CD
composite/JJ
insurer/NN
Royal/NNP
Insurance/NNP
,/,
which/WDT
finished/VBD
13/CD
lower/JJR
at/IN
475/CD
,/,
were/VBD
featured/VBN
in/IN
the/DT
talk/NN
./.
On/IN
the/DT
life/NN
insurance/NN
side/NN
,/,
Pearl/NNP
Group/NNP
finished/VBD
5/CD
lower/JJR
at/IN
640/CD
,/,
and/CC
Sun/NNP
Life/NNP
dropped/VBD
15/CD
to/TO
#/#
11.53/CD
./.
Jaguar/NNP
finished/VBD
4/CD
lower/JJR
at/IN
694/CD
./.
Dealers/NNS
said/VBD
the/DT
market/NN
did/VBD
n't/RB
react/VB
substantially/RB
to/TO
Ford/NNP
Motor/NNP
Co./NNP
's/POS
disclosure/NN
to/TO
the/DT
U.S./NNP
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
that/IN
it/PRP
will/MD
seek/VB
100/CD
%/NN
of/IN
Jaguar/NNP
's/POS
shares/NNS
outstanding/JJ
when/WRB
U.K./NNP
government/NN
share/NN
regulations/NNS
are/VBP
lifted/VBN
at/IN
the/DT
end/NN
of/IN
next/JJ
year/NN
./.
Tokyo/NNP
stocks/NNS
closed/VBD
easier/JJR
,/,
posting/VBG
their/PRP$
first/JJ
loss/NN
in/IN
six/CD
trading/NN
days/NNS
,/,
partly/RB
because/IN
of/IN
programmed/JJ
index-linked/JJ
selling/NN
by/IN
trust/NN
investment/NN
funds/NNS
in/IN
the/DT
afternoon/NN
session/NN
./.
The/DT
Nikkei/NNP
index/NN
fell/VBD
58.97/CD
points/NNS
to/TO
35526.55/CD
./.
The/DT
index/NN
gained/VBD
99.14/CD
points/NNS
Monday/NNP
./.
In/IN
early/RB
trading/NN
in/IN
Tokyo/NNP
Wednesday/NNP
,/,
the/DT
Nikkei/NNP
index/NN
rose/VBD
17.92/CD
points/NNS
to/TO
35544.47/CD
./.
On/IN
Tuesday/NNP
,/,
the/DT
Tokyo/NNP
stock/NN
price/NN
index/NN
of/IN
all/DT
first/JJ
section/NN
issues/NNS
was/VBD
down/RB
6.31/CD
at/IN
2681.22/CD
./.
First/JJ
section/NN
volume/NN
was/VBD
estimated/VBN
at/IN
900/CD
million/CD
shares/NNS
,/,
up/RB
from/IN
605/CD
million/CD
Monday/NNP
./.
Observers/NNS
said/VBD
the/DT
market/NN
again/RB
failed/VBD
to/TO
find/VB
a/DT
trading/NN
focus/NN
,/,
discouraging/VBG
much/JJ
participation/NN
by/IN
investors/NNS
./.
The/DT
market/NN
,/,
however/RB
,/,
is/VBZ
expected/VBN
to/TO
remain/VB
stable/JJ
and/CC
expectations/NNS
for/IN
future/JJ
gains/NNS
are/VBP
high/JJ
,/,
traders/NNS
said/VBD
./.
Such/JJ
sentiment/NN
is/VBZ
being/VBG
supported/VBN
by/IN
word/NN
that/IN
a/DT
large/JJ
amount/NN
of/IN
cash/NN
from/IN
investment/NN
trust/NN
funds/NNS
is/VBZ
scheduled/VBN
to/TO
enter/VB
the/DT
market/NN
later/RB
this/DT
week/NN
and/CC
in/IN
early/JJ
November/NNP
./.
The/DT
expected/JJ
amount/NN
is/VBZ
said/VBD
to/TO
be/VB
700/CD
billion/CD
yen/NN
$/$
4.93/CD
billion/CD
1.05/CD
trillion/CD
yen/NN
--/:
the/DT
second/JJ
largest/JJS
amount/NN
this/DT
year/NN
in/IN
a/DT
given/JJ
period/NN
,/,
following/VBG
the/DT
record/JJ
high/NN
set/VBN
at/IN
the/DT
end/NN
of/IN
July/NNP
,/,
according/VBG
to/TO
market/NN
observers/NNS
./.
In/IN
addition/NN
to/TO
a/DT
large/JJ
amount/NN
of/IN
investment/NN
trust/NN
fund/NN
cash/NN
,/,
analysts/NNS
generally/RB
see/VBP
the/DT
market/NN
environment/NN
improving/VBG
compared/VBN
with/IN
the/DT
past/JJ
couple/NN
of/IN
weeks/NNS
./.
Toshiyuki/NNP
Nishimura/NNP
,/,
an/DT
analyst/NN
at/IN
Yamaichi/NNP
Securities/NNP
,/,
said/VBD
,/,
``/``
The/DT
market/NN
sentiment/NN
is/VBZ
bullish/JJ
,/,
simply/RB
because/IN
there/EX
are/VBP
few/JJ
bad/JJ
factors/NNS
./.
''/''
Buying/NN
activity/NN
Tuesday/NNP
centered/VBD
on/IN
a/DT
wide/JJ
range/NN
of/IN
midcapitalization/NN
,/,
domestic/JJ
demand-related/JJ
shares/NNS
whose/WP$
prices/NNS
range/VBP
from/IN
1,000/CD
to/TO
2,000/CD
yen/NN
./.
Investors/NNS
expect/VBP
these/DT
shares/NNS
will/MD
be/VB
targets/NNS
of/IN
investment/NN
trust/NN
funds/NNS
,/,
which/WDT
often/RB
buy/VBP
small/JJ
amounts/NNS
spread/VBN
across/IN
a/DT
wide/JJ
range/NN
of/IN
issues/NNS
./.
On/IN
the/DT
other/JJ
hand/NN
,/,
high-priced/JJ
shares/NNS
such/JJ
as/IN
Pioneer/NNP
Electronic/NNP
and/CC
Sony/NNP
failed/VBD
to/TO
spark/VB
investor/NN
interest/NN
because/IN
these/DT
issues/NNS
are/VBP
unlikely/JJ
to/TO
be/VB
bought/VBN
by/IN
investment/NN
trust/NN
funds/NNS
,/,
observers/NNS
said/VBD
./.
Tuesday/NNP
's/POS
notable/JJ
losers/NNS
were/VBD
highpriced/JJ
shares/NNS
such/JJ
as/IN
Pioneer/NNP
,/,
which/WDT
shed/VBD
210/CD
yen/NN
to/TO
5,900/CD
yen/NN
./.
Sony/NNP
was/VBD
down/RB
130/CD
to/TO
8,590/CD
./.
TDK/NNP
fell/VBD
120/CD
to/TO
5,960/CD
,/,
Fuji/NNP
Photo/NNP
Film/NNP
declined/VBD
160/CD
to/TO
4,830/CD
,/,
and/CC
Fanuc/NNP
dropped/VBD
160/CD
to/TO
7,440/CD
./.
Share/NN
prices/NNS
on/IN
the/DT
Frankfurt/NNP
stock/NN
exchange/NN
closed/VBD
sharply/RB
lower/JJR
in/IN
thin/JJ
dealings/NNS
as/IN
worried/JJ
investors/NNS
remained/VBD
idle/JJ
as/IN
the/DT
result/NN
of/IN
two/CD
potentially/RB
destabilizing/JJ
domestic/JJ
developments/NNS
./.
The/DT
DAX/NNP
index/NN
fell/VBD
15.85/CD
to/TO
end/VB
at/IN
1507.37/CD
./.
Cutting/VBG
against/IN
the/DT
downward/JJ
trend/NN
was/VBD
Continental/NNP
,/,
which/WDT
jumped/VBD
4/CD
marks/NNS
to/TO
346/CD
marks/NNS
$/$
187/CD
heavy/JJ
trading/NN
on/IN
rumors/NNS
that/IN
the/DT
tire/NN
maker/NN
is/VBZ
about/RB
to/TO
be/VB
taken/VBN
over/RP
./.
It/PRP
jumped/VBD
7.5/CD
Monday/NNP
./.
Traders/NNS
said/VBD
the/DT
market/NN
was/VBD
exceptionally/RB
thin/JJ
,/,
as/IN
small/JJ
investors/NNS
remain/VBP
on/IN
the/DT
sidelines/NNS
./.
Market/NN
participants/NNS
say/VBP
investors/NNS
are/VBP
not/RB
only/RB
licking/VBG
their/PRP$
wounds/NNS
following/VBG
the/DT
turbulence/NN
last/JJ
week/NN
,/,
but/CC
they/PRP
have/VBP
also/RB
been/VBN
made/VBN
nervous/JJ
by/IN
two/CD
events/NNS
in/IN
West/NNP
Germany/NNP
./.
On/IN
Sunday/NNP
,/,
the/DT
governing/VBG
Christian/NNP
Democratic/NNP
Union/NNP
suffered/VBD
a/DT
series/NN
of/IN
setbacks/NNS
,/,
the/DT
extent/NN
of/IN
which/WDT
became/VBD
fully/RB
known/VBN
only/RB
late/JJ
Monday/NNP
,/,
in/IN
municipal/JJ
elections/NNS
in/IN
Baden-Wuerttemberg/NNP
./.
Traders/NNS
say/VBP
investors/NNS
are/VBP
worried/JJ
that/IN
the/DT
CDU/NNP
wo/MD
n't/RB
be/VB
able/JJ
to/TO
hold/VB
office/NN
in/IN
federal/JJ
elections/NNS
at/IN
the/DT
end/NN
of/IN
1990/CD
./.
And/CC
statements/NNS
by/IN
the/DT
chairman/NN
of/IN
the/DT
IG/NNP
Metall/NNP
labor/NN
union/NN
,/,
Franz/NNP
Steinkuehler/NNP
,/,
also/RB
cast/VBD
a/DT
cloud/NN
over/IN
trading/NN
,/,
dealers/NNS
said/VBD
./.
Mr./NNP
Steinkuehler/NNP
said/VBD
at/IN
a/DT
convention/NN
in/IN
West/NNP
Berlin/NNP
that/IN
the/DT
union/NN
has/VBZ
to/TO
prepare/VB
for/IN
``/``
a/DT
big/JJ
fight/NN
''/''
to/TO
achieve/VB
its/PRP$
main/JJ
goal/NN
of/IN
a/DT
35-hour/JJ
workweek/NN
,/,
down/IN
from/IN
current/JJ
37-hour/CD
workweek/NN
./.
The/DT
decline/NN
in/IN
prices/NNS
cut/VBD
broadly/RB
through/IN
the/DT
blue-chip/JJ
issues/NNS
,/,
as/IN
Siemens/NNP
tumbled/VBD
7.5/CD
to/TO
544/CD
,/,
Deutsche/NNP
Bank/NNP
plunged/VBD
7/CD
to/TO
657/CD
,/,
and/CC
the/DT
auto/NN
makers/NNS
fell/VBD
sharply/RB
as/RB
well/RB
./.
Daimler-Benz/NNP
dropped/VBD
12.5/CD
to/TO
710.5/CD
,/,
Bayerische/NNP
Motoren/NNP
Werke/NNP
dropped/VBD
10.5/CD
to/TO
543.5/CD
,/,
and/CC
Volkswagen/NN
lost/VBD
7.1/CD
./.
Elsewhere/RB
,/,
share/NN
prices/NNS
closed/VBD
lower/JJR
in/IN
Zurich/NNP
,/,
Amsterdam/NNP
,/,
Milan/NNP
and/CC
Stockholm/NNP
./.
Uneasiness/NN
about/IN
Wall/NNP
Street/NNP
was/VBD
cited/VBN
in/IN
several/JJ
markets/NNS
./.
Prices/NNS
closed/VBD
lower/JJR
in/IN
Sydney/NNP
,/,
Singapore/NNP
and/CC
Wellington/NNP
,/,
were/VBD
mixed/JJ
in/IN
Hong/NNP
Kong/NNP
and/CC
higher/JJR
in/IN
Taipei/NNP
,/,
Manila/NNP
,/,
Paris/NNP
,/,
Brussels/NNP
and/CC
Seoul/NNP
./.
Here/RB
are/VBP
price/NN
trends/NNS
on/IN
the/DT
world/NN
's/POS
major/JJ
stock/NN
markets/NNS
,/,
as/IN
calculated/VBN
by/IN
Morgan/NNP
Stanley/NNP
Capital/NNP
International/NNP
Perspective/NNP
,/,
Geneva/NNP
./.
To/TO
make/VB
them/PRP
directly/RB
comparable/JJ
,/,
each/DT
index/NN
is/VBZ
based/VBN
on/IN
the/DT
close/NN
of/IN
1969/CD
equaling/VBG
100/CD
./.
The/DT
percentage/NN
change/NN
is/VBZ
since/IN
year-end/NN
./.
Directors/NNS
of/IN
Bergen/NNP
Bank/NNP
and/CC
Den/NNP
Norske/NNP
Creditbank/NNP
,/,
two/CD
of/IN
Norway/NNP
's/POS
leading/JJ
banks/NNS
,/,
announced/VBD
they/PRP
had/VBD
agreed/VBN
to/TO
the/DT
formal/JJ
merger/NN
of/IN
the/DT
banks/NNS
./.
The/DT
merger/NN
would/MD
create/VB
Scandinavia/NNP
's/POS
seventh/JJ
largest/JJS
bank/NN
,/,
with/IN
combined/JJ
assets/NNS
of/IN
210/CD
billion/CD
Norwegian/JJ
kroner/NN
$/$
30.3/CD
billion/CD
The/DT
banks/NNS
said/VBD
an/DT
application/NN
for/IN
a/DT
concession/NN
to/TO
merge/VB
into/IN
one/CD
entity/NN
to/TO
be/VB
called/VBN
Den/NNP
Norske/NNP
Bank/NNP
AS/IN
was/VBD
sent/VBN
Monday/NNP
to/TO
the/DT
Finance/NNP
Ministry/NNP
./.
The/DT
two/CD
boards/NNS
said/VBD
in/IN
a/DT
joint/JJ
statement/NN
that/IN
the/DT
proposed/JJ
merger/NN
agreement/NN
was/VBD
considered/VBN
in/IN
separate/JJ
board/NN
meetings/NNS
in/IN
Oslo/NNP
Monday/NNP
./.
They/PRP
said/VBD
the/DT
agreement/NN
will/MD
be/VB
submitted/VBN
to/TO
their/PRP$
respective/JJ
supervisory/JJ
boards/NNS
next/IN
Wednesday/NNP
./.
Extraordinary/JJ
general/JJ
meetings/NNS
,/,
to/TO
be/VB
held/VBN
Nov./NNP
28/CD
,/,
will/MD
decide/VB
the/DT
share/NN
exchange/NN
ratio/NN
./.
The/DT
merger/NN
requires/VBZ
the/DT
approval/NN
of/IN
Norwegian/JJ
authorities/NNS
./.
Savings/NNS
and/CC
loans/NNS
reject/VBP
blacks/NNS
for/IN
mortgage/NN
loans/NNS
twice/RB
as/RB
often/RB
as/IN
they/PRP
reject/VBP
whites/NNS
,/,
the/DT
Office/NNP
of/IN
Thrift/NNP
Supervision/NNP
said/VBD
./.
But/CC
that/DT
does/VBZ
n't/RB
necessarily/RB
mean/VB
thrifts/NNS
are/VBP
discriminating/VBG
against/IN
blacks/NNS
,/,
the/DT
agency/NN
said/VBD
./.
The/DT
office/NN
,/,
an/DT
arm/NN
of/IN
the/DT
Treasury/NNP
,/,
said/VBD
it/PRP
does/VBZ
n't/RB
have/VB
data/NNS
on/IN
the/DT
financial/JJ
position/NN
of/IN
applicants/NNS
and/CC
thus/RB
ca/MD
n't/RB
determine/VB
why/WRB
blacks/NNS
are/VBP
rejected/VBN
more/RBR
often/RB
./.
Nevertheless/RB
,/,
on/IN
Capitol/NNP
Hill/NNP
,/,
where/WRB
the/DT
information/NN
was/VBD
released/VBN
yesterday/NN
at/IN
a/DT
Senate/NNP
banking/NN
subcommittee/NN
hearing/NN
,/,
lawmakers/NNS
said/VBD
they/PRP
are/VBP
worried/JJ
that/IN
financial/JJ
institutions/NNS
are/VBP
routinely/RB
discriminating/VBG
against/IN
minorities/NNS
./.
They/PRP
asked/VBD
regulators/NNS
to/TO
suggest/VB
new/JJ
ways/NNS
to/TO
force/VB
banks/NNS
and/CC
thrifts/NNS
to/TO
comply/VB
with/IN
anti-discrimination/JJ
laws/NNS
./.
Sen./NNP
Alan/NNP
Dixon/NNP
D/NNP
,/,
Ill./NNP
chairman/NN
of/IN
the/DT
subcommittee/NN
on/IN
consumer/NN
and/CC
regulatory/JJ
affairs/NNS
,/,
said/VBD
,/,
``/``
I/PRP
'm/VBP
not/RB
a/DT
statistician/NN
./.
But/CC
when/WRB
blacks/NNS
are/VBP
getting/VBG
their/PRP$
loan/NN
applications/NNS
rejected/VBD
twice/RB
as/RB
often/RB
as/IN
whites/NNS
--/:
and/CC
in/IN
some/DT
cities/NNS
,/,
it/PRP
is/VBZ
three/CD
and/CC
four/CD
times/NNS
as/RB
often/RB
--/:
I/PRP
conclude/VBP
that/DT
discrimination/NN
is/VBZ
part/NN
of/IN
the/DT
problem/NN
./.
''/''
James/NNP
Grohl/NNP
,/,
a/DT
spokesman/NN
for/IN
the/DT
U.S./NNP
League/NNP
of/IN
Savings/NNP
Institutions/NNP
,/,
said/VBD
,/,
``/``
The/DT
data/NN
is/VBZ
a/DT
red/JJ
flag/NN
,/,
but/CC
lacking/VBG
the/DT
financial/JJ
data/NN
you/PRP
ca/MD
n't/RB
make/VB
a/DT
case/NN
that/DT
discrimination/NN
is/VBZ
widespread/JJ
./.
''/''
The/DT
trade/NN
group/NN
official/NN
added/VBD
:/:
``/``
Certainly/RB
the/DT
federal/JJ
government/NN
should/MD
take/VB
a/DT
hard/JJ
look/NN
at/IN
it/PRP
./.
''/''
Sen./NNP
Dixon/NNP
held/VBD
the/DT
hearing/NN
to/TO
follow/VB
up/RP
on/IN
a/DT
provision/NN
in/IN
the/DT
savings/NNS
and/CC
loan/NN
bailout/NN
bill/NN
that/WDT
required/VBD
regulators/NNS
to/TO
report/VB
on/IN
evidence/NN
of/IN
discimination/NN
in/IN
mortgage/NN
lending/NN
./.
The/DT
legislation/NN
also/RB
requires/VBZ
broad/JJ
new/JJ
disclosures/NNS
of/IN
the/DT
race/NN
,/,
sex/NN
and/CC
income/NN
level/NN
of/IN
borrowers/NNS
,/,
but/CC
that/DT
information/NN
wo/MD
n't/RB
be/VB
gathered/VBN
in/IN
new/JJ
studies/NNS
for/IN
several/JJ
months/NNS
at/IN
least/JJS
./.
The/DT
Federal/NNP
Reserve/NNP
said/VBD
its/PRP$
studies/NNS
in/IN
recent/JJ
years/NNS
,/,
which/WDT
adjust/VBP
for/IN
income/NN
differences/NNS
and/CC
other/JJ
variables/NNS
,/,
showed/VBD
that/IN
blacks/NNS
received/VBD
fewer/JJR
home/NN
mortgages/NNS
from/IN
banks/NNS
and/CC
thrifts/NNS
than/IN
whites/NNS
./.
But/CC
John/NNP
LaWare/NNP
,/,
a/DT
Fed/NNP
governor/NN
,/,
told/VBD
the/DT
subcommittee/NN
the/DT
evidence/NN
is/VBZ
mixed/JJ
and/CC
that/IN
the/DT
Fed/NNP
's/POS
believes/VBZ
the/DT
vast/JJ
majority/NN
of/IN
banks/NNS
are/VBP
n't/RB
discriminating/VBG
./.
For/IN
instance/NN
,/,
he/PRP
noted/VBD
,/,
the/DT
Fed/NNP
studies/NNS
have/VBP
shown/VBN
that/IN
blacks/NNS
receive/VBP
more/JJR
home/NN
improvement/NN
loans/NNS
than/IN
whites/NNS
./.
Several/JJ
lawmakers/NNS
were/VBD
angered/JJ
that/IN
the/DT
bank/NN
and/CC
thrift/NN
regulators/NNS
generally/RB
said/VBD
they/PRP
have/VBP
been/VBN
too/RB
busy/JJ
handling/VBG
the/DT
record/JJ
number/NN
of/IN
bank/NN
and/CC
thrift/NN
failures/NNS
in/IN
the/DT
past/JJ
few/JJ
years/NNS
to/TO
put/VB
much/JJ
energy/NN
into/IN
investigating/VBG
possible/JJ
discrimination/NN
./.
``/``
We/PRP
would/MD
be/VB
the/DT
first/JJ
to/TO
admit/VB
that/IN
we/PRP
have/VBP
not/RB
devoted/VBN
the/DT
necessary/JJ
amount/NN
of/IN
emphasis/NN
over/IN
the/DT
past/JJ
several/JJ
years/NNS
''/''
to/TO
developing/VBG
examinations/NNS
for/IN
discrimination/NN
,/,
said/VBD
Jonathan/NNP
Fiechter/NNP
,/,
a/DT
top/JJ
official/NN
of/IN
the/DT
Office/NNP
of/IN
Thrift/NNP
Supervision/NNP
./.
``/``
If/IN
we/PRP
've/VBP
got/VBD
folks/NNS
out/IN
there/EX
who/WP
are/VBP
being/VBG
turned/VBD
away/RP
in/IN
the/DT
mortgage/NN
market/NN
improperly/RB
and/CC
unfairly/RB
,/,
''/''
said/VBD
Sen./NNP
Donald/NNP
Riegle/NNP
D./NNP
,/,
Mich./NNP
chairman/NN
of/IN
the/DT
banking/NN
committee/NN
,/,
``/``
then/RB
that/DT
is/VBZ
a/DT
matter/NN
that/WDT
needs/VBZ
remedy/NN
now/RB
,/,
not/RB
six/CD
months/NNS
from/IN
now/RB
,/,
or/CC
six/CD
years/NNS
from/IN
now/RB
,/,
or/CC
26/CD
years/NNS
from/IN
now/RB
./.
''/''
Officials/NNP
of/IN
the/DT
Federal/NNP
Deposit/NNP
Insurance/NNP
Corp./NNP
and/CC
the/DT
Office/NNP
of/IN
the/DT
Comptroller/NNP
of/IN
the/DT
Currency/NNP
said/VBD
they/PRP
have/VBP
punished/VBN
only/RB
a/DT
few/JJ
banks/NNS
for/IN
violations/NNS
of/IN
anti-discrimination/JJ
laws/NNS
./.
The/DT
FDIC/NNP
said/VBD
it/PRP
has/VBZ
issued/VBN
five/CD
citations/NNS
to/TO
banks/NNS
over/IN
the/DT
past/JJ
three/CD
years/NNS
for/IN
discriminatory/JJ
practices/NNS
./.
The/DT
comptroller/NN
's/POS
office/NN
said/VBD
it/PRP
found/VBD
no/DT
indications/NNS
of/IN
illegal/JJ
discrimination/NN
in/IN
3,437/CD
examinations/NNS
of/IN
banks/NNS
since/IN
April/NNP
1987/CD
./.
The/DT
comptroller/NN
's/POS
office/NN
also/RB
said/VBD
that/IN
of/IN
37,000/CD
complaints/NNS
it/PRP
received/VBD
since/IN
January/NNP
1987/CD
,/,
only/RB
16/CD
alleged/VBD
racial/JJ
discrimination/NN
in/IN
real/JJ
estate/NN
lending/NN
./.
The/DT
agency/NN
investigated/VBD
the/DT
complaints/NNS
but/CC
no/DT
violations/NNS
were/VBD
cited/VBN
./.
Thrift/NN
regulators/NNS
did/VBD
n't/RB
give/VB
any/DT
figures/NNS
on/IN
their/PRP$
enforcement/NN
actions/NNS
./.
Mr./NNP
Fiechter/NNP
said/VBD
that/IN
among/IN
the/DT
possibilities/NNS
being/VBG
considered/VBN
by/IN
regulators/NNS
to/TO
fight/VB
discrimination/NN
is/VBZ
the/DT
use/NN
of/IN
``/``
testers/NNS
''/''
--/:
government/NN
investigators/NNS
who/WP
would/MD
pose/VB
as/IN
home/NN
buyers/NNS
./.
The/DT
Department/NNP
of/IN
Housing/NNP
and/CC
Urban/NNP
Development/NNP
has/VBZ
used/VBN
testers/NNS
to/TO
investigate/VB
discrimination/NN
in/IN
rental/JJ
housing/NN
./.
Using/VBG
testers/NNS
could/MD
be/VB
controversial/JJ
with/IN
financial/JJ
institutions/NNS
,/,
but/CC
Mr./NNP
Grohl/NNP
said/VBD
the/DT
U.S./NNP
League/NNP
of/IN
Savings/NNP
Institutions/NNP
had/VBD
n't/RB
yet/RB
taken/VBN
any/DT
position/NN
on/IN
the/DT
matter/NN
./.
Time/NNP
Warner/NNP
Inc./NNP
is/VBZ
considering/VBG
a/DT
legal/JJ
challenge/NN
to/TO
Tele-Communications/NNP
Inc./NNP
's/POS
plan/NN
to/TO
buy/VB
half/NN
of/IN
Showtime/NNP
Networks/NNP
Inc./NNP
,/,
a/DT
move/NN
that/WDT
could/MD
lead/VB
to/TO
all-out/JJ
war/NN
between/IN
the/DT
cable/NN
industry/NN
's/POS
two/CD
most/RBS
powerful/JJ
players/NNS
./.
Time/NNP
is/VBZ
also/RB
fighting/VBG
the/DT
transaction/NN
on/IN
other/JJ
fronts/NNS
,/,
by/IN
attempting/VBG
to/TO
discourage/VB
other/JJ
cable/NN
operators/NNS
from/IN
joining/VBG
Tele-Communications/NNP
as/IN
investors/NNS
in/IN
Showtime/NNP
,/,
cable-TV/NN
industry/NN
executives/NNS
say/VBP
./.
Time/NNP
officials/NNS
declined/VBD
to/TO
comment/VB
./.
Last/JJ
week/NN
,/,
Tele-Communications/NNP
agreed/VBD
to/TO
pay/VB
Viacom/NNP
Inc./NNP
$/$
225/CD
million/CD
for/IN
a/DT
50/CD
%/NN
stake/NN
in/IN
its/PRP$
Showtime/NNP
subsidiary/NN
,/,
which/WDT
is/VBZ
a/DT
distant/JJ
second/NN
to/TO
Time/NNP
's/POS
Home/NNP
Box/NNP
Office/NNP
in/IN
the/DT
delivery/NN
of/IN
pay-TV/NN
networks/NNS
to/TO
cable/NN
subscribers/NNS
./.
Tele-Communications/NNP
,/,
the/DT
U.S./NNP
's/POS
largest/JJS
cable/NN
company/NN
,/,
said/VBD
it/PRP
may/MD
seek/VB
other/JJ
cable/NN
partners/NNS
to/TO
join/VB
in/IN
its/PRP$
investment/NN
./.
Tele-Communications/NNP
is/VBZ
HBO/NNP
's/POS
largest/JJS
customer/NN
,/,
and/CC
the/DT
two/CD
have/VBP
a/DT
number/NN
of/IN
other/JJ
business/NN
relationships/NNS
./.
Earlier/RBR
this/DT
year/NN
,/,
Time/NNP
even/RB
discussed/VBD
bringing/VBG
Tele-Communications/NNP
in/RP
as/IN
an/DT
investor/NN
in/IN
HBO/NNP
,/,
executives/NNS
at/IN
both/DT
companies/NNS
said/VBD
./.
The/DT
purchase/NN
of/IN
the/DT
Showtime/NNP
stake/NN
is/VBZ
``/``
a/DT
direct/JJ
slap/NN
in/IN
our/PRP$
face/NN
,/,
''/''
said/VBD
one/CD
senior/JJ
Time/NNP
executive/NN
./.
Time/NNP
is/VBZ
expected/VBN
to/TO
mount/VB
a/DT
legal/JJ
challenge/NN
in/IN
U.S./NNP
District/NNP
Court/NNP
in/IN
New/NNP
York/NNP
,/,
where/WRB
Viacom/NNP
in/IN
May/NNP
filed/VBD
a/DT
$/$
2.5/CD
billion/CD
antitrust/JJ
suit/NN
charging/VBG
Time/NNP
and/CC
HBO/NNP
with/IN
monopolizing/VBG
the/DT
pay-TV/NN
business/NN
and/CC
trying/VBG
to/TO
crush/VB
competition/NN
from/IN
Showtime/NNP
./.
Executives/NNS
involved/VBN
in/IN
plotting/VBG
Time/NN
's/POS
defense/NN
say/VBP
it/PRP
is/VBZ
now/RB
preparing/VBG
a/DT
countersuit/NN
naming/VBG
both/CC
Viacom/NNP
and/CC
Tele-Communications/NNP
as/IN
defendants/NNS
./.
The/DT
executives/NNS
say/VBP
Time/NNP
may/MD
seek/VB
to/TO
break/VB
up/RP
the/DT
transaction/NN
after/IN
it/PRP
is/VBZ
consummated/VBN
,/,
or/CC
may/MD
seek/VB
constraints/NNS
that/WDT
would/MD
prevent/VB
Tele-Communications/NNP
from/IN
dropping/VBG
HBO/NNP
in/IN
any/DT
of/IN
its/PRP$
cable/NN
systems/NNS
in/IN
favor/NN
of/IN
Showtime/NNP
./.
Viacom/NNP
officials/NNS
declined/VBD
to/TO
comment/VB
./.
Jerome/NNP
Kern/NNP
,/,
Tele-Communications/NNP
'/POS
chief/JJ
outside/JJ
counsel/NN
,/,
said/VBD
he/PRP
was/VBD
n't/RB
aware/JJ
of/IN
Time/NN
's/POS
legal/JJ
plans/NNS
./.
But/CC
he/PRP
said/VBD
that/IN
any/DT
effort/NN
by/IN
Time/NNP
to/TO
characterize/VB
the/DT
Tele-Communications/NNP
investment/NN
in/IN
Showtime/NNP
as/IN
anti-competitive/JJ
would/MD
be/VB
``/``
the/DT
pot/NN
calling/VBG
the/DT
kettle/NN
black/NN
./.
''/''
``/``
It/PRP
's/VBZ
hard/JJ
to/TO
see/VB
how/WRB
an/DT
investment/NN
by/IN
the/DT
largest/JJS
cable/NN
operator/NN
the/DT
weaker/JJR
of/IN
the/DT
two/CD
networks/NNS
is/VBZ
anti-competitive/JJ
,/,
when/WRB
the/DT
stronger/JJR
of/IN
the/DT
two/CD
networks/NNS
is/VBZ
owned/VBN
by/IN
the/DT
second/RB
largest/JJS
''/''
cable/NN
operator/NN
,/,
Mr./NNP
Kern/NNP
said/VBD
./.
In/IN
addition/NN
to/TO
owning/VBG
HBO/NNP
,/,
with/IN
22/CD
million/CD
subscribers/NNS
,/,
Time/NNP
Warner/NNP
separately/RB
operates/VBZ
cable-TV/NN
system/NN
serving/VBG
about/RB
5.6/CD
million/CD
cable-TV/NN
subscribers/NNS
./.
Tele-Communications/NNP
controls/VBZ
close/RB
to/TO
12/CD
million/CD
cable/NN
subscribers/NNS
,/,
and/CC
Viacom/NNP
has/VBZ
about/RB
one/CD
million/CD
./.
In/IN
its/PRP$
suit/NN
against/IN
Time/NNP
,/,
Viacom/NNP
says/VBZ
the/DT
ownership/NN
of/IN
both/CC
cable/NN
systems/NNS
and/CC
cable-programming/JJ
networks/NNS
gives/VBZ
the/DT
company/NN
too/RB
much/JJ
market/NN
power/NN
./.
Time/NNP
argues/VBZ
that/IN
in/IN
joining/VBG
up/RP
with/IN
Tele-Communications/NNP
,/,
Viacom/NNP
has/VBZ
potentially/RB
more/JJR
power/NN
,/,
particularly/RB
since/IN
Viacom/NNP
also/RB
owns/VBZ
cable/NN
networks/NNS
MTV/NNP
,/,
VH-1/NNP
and/CC
Nick/NNP
at/IN
Nite/NNP
./.
Ironically/NNP
,/,
Tele-Communications/NNP
and/CC
Time/NNP
have/VBP
often/RB
worked/VBN
closely/RB
in/IN
the/DT
cable/NN
business/NN
./.
Together/RB
,/,
they/PRP
control/VBP
nearly/RB
40/CD
%/NN
of/IN
Turner/NNP
Broadcasting/NNP
Systems/NNP
Inc./NNP
;/:
Tele-Communications/NNP
has/VBZ
a/DT
21.8/CD
%/NN
stake/NN
,/,
while/IN
Time/NNP
Warner/NNP
has/VBZ
a/DT
17.8/CD
%/NN
stake/NN
./.
But/CC
since/IN
Time/NNP
's/POS
merger/NN
with/IN
Warner/NNP
Communications/NNP
Inc./NNP
,/,
relations/NNS
between/IN
the/DT
two/CD
have/VBP
become/VBN
strained/JJ
./.
Each/DT
company/NN
worries/VBZ
that/IN
the/DT
other/JJ
is/VBZ
becoming/VBG
too/RB
powerful/JJ
and/CC
too/RB
vertically/RB
integrated/JJ
./.
Meanwhile/RB
,/,
some/DT
legal/JJ
observers/NNS
say/VB
the/DT
Tele-Communications/NNP
investment/NN
and/CC
other/JJ
developments/NNS
are/VBP
weakening/VBG
Viacom/NNP
's/POS
antitrust/JJ
suit/NN
against/IN
Time/NNP
./.
Viacom/NNP
accuses/VBZ
Time/NNP
in/IN
its/PRP$
suit/NN
of/IN
refusing/VBG
to/TO
carry/VB
Showtime/NNP
or/CC
a/DT
sister/JJ
service/NN
,/,
The/DT
Movie/NNP
Channel/NNP
,/,
on/IN
Time/NNP
's/POS
Manhattan/NNP
Cable/NNP
TV/NN
system/NN
,/,
one/CD
of/IN
the/DT
nation/NN
's/POS
largest/JJS
urban/JJ
systems/NNS
./.
But/CC
yesterday/NN
,/,
Manhattan/NNP
Cable/NNP
announced/VBD
it/PRP
will/MD
launch/VB
Showtime/NNP
on/IN
Nov./NNP
1/CD
to/TO
over/IN
230,000/CD
subscribers/NNS
./.
Showtime/NNP
has/VBZ
also/RB
accused/VBN
HBO/NNP
of/IN
locking/VBG
up/RP
the/DT
lion/NN
's/POS
share/NN
of/IN
Hollywood/NNP
's/POS
movies/NNS
by/IN
signing/VBG
exclusive/JJ
contracts/NNS
with/IN
all/PDT
the/DT
major/JJ
studios/NNS
./.
But/CC
Showtime/NNP
has/VBZ
continued/VBN
to/TO
sign/VB
new/JJ
contracts/NNS
with/IN
Hollywood/NNP
studios/NNS
,/,
and/CC
yesterday/NN
announced/VBD
it/PRP
will/MD
buy/VB
movies/NNS
from/IN
Columbia/NNP
Pictures/NNP
Entertainment/NNP
Inc./NNP
,/,
which/WDT
currently/RB
has/VBZ
a/DT
non-exclusive/JJ
arrangement/NN
with/IN
HBO/NNP
./.
The/DT
Federal/NNP
Trade/NNP
Commission/NNP
said/VBD
it/PRP
authorized/VBD
its/PRP$
staff/NN
to/TO
seek/VB
a/DT
preliminary/JJ
injunction/NN
barring/VBG
Imo/NNP
Industries/NNP
Inc./NNP
from/IN
acquiring/VBG
the/DT
shares/NNS
outstanding/JJ
of/IN
the/DT
U.S./NNP
unit/NN
of/IN
the/DT
British/JJ
company/NN
,/,
United/NNP
Scientific/NNP
Holdings/NNP
PLC/NNP
,/,
for/IN
$/$
69/CD
million/CD
./.
The/DT
FTC/NNP
said/VBD
it/PRP
``/``
had/VBD
reason/NN
to/TO
believe/VB
that/IN
the/DT
proposed/JJ
acquisition/NN
could/MD
substantially/RB
reduce/VB
competition/NN
''/''
in/IN
the/DT
production/NN
of/IN
certain/JJ
image/NN
intensifier/NN
tubes/NNS
,/,
which/WDT
are/VBP
important/JJ
components/NNS
of/IN
night-vision/JJ
devices/NNS
sold/VBN
primarily/RB
to/TO
the/DT
defense/NN
industry/NN
./.
The/DT
FTC/NNP
said/VBD
it/PRP
would/MD
seek/VB
to/TO
enjoin/VB
the/DT
proposed/JJ
acquisition/NN
in/IN
a/DT
federal/JJ
trial/NN
court/NN
,/,
but/CC
declined/VBD
to/TO
specify/VB
which/WDT
one/NN
./.
Under/IN
federal/JJ
law/NN
,/,
if/IN
the/DT
court/NN
grants/VBZ
a/DT
preliminary/JJ
injunction/NN
,/,
the/DT
FTC/NNP
must/MD
begin/VB
administrative/JJ
proceedings/NNS
to/TO
determine/VB
the/DT
legality/NN
of/IN
the/DT
proposed/JJ
stock/NN
purchase/NN
within/IN
20/CD
days/NNS
./.
Officials/NNS
at/IN
the/DT
United/NNP
Scientific/NNP
unit/NN
,/,
Optic-Electronic/NNP
Corp./NNP
of/IN
Garland/NNP
,/,
Texas/NNP
,/,
and/CC
at/IN
Imo/NNP
Industries/NNP
of/IN
Lawrenceville/NNP
,/,
N.J./NNP
,/,
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
The/DT
airline/NN
industry/NN
's/POS
fortunes/NNS
,/,
in/IN
dazzling/JJ
shape/NN
for/IN
most/RBS|JJS
of/IN
the/DT
year/NN
,/,
have/VBP
taken/VBN
a/DT
sudden/JJ
turn/NN
for/IN
the/DT
worse/JJR
in/IN
the/DT
past/JJ
few/JJ
weeks/NNS
./.
Citing/VBG
rising/VBG
fuel/NN
costs/NNS
,/,
promotional/JJ
fare/NN
cuts/NNS
and/CC
a/DT
general/JJ
slowdown/NN
in/IN
travel/NN
,/,
several/JJ
major/JJ
carriers/NNS
have/VBP
posted/VBN
or/CC
are/VBP
expected/VBN
to/TO
post/VB
relatively/RB
poor/JJ
third-quarter/JJ
results/NNS
./.
Yesterday/NN
,/,
USAir/NNP
Group/NNP
Inc./NNP
,/,
recently/RB
one/CD
of/IN
the/DT
industry/NN
's/POS
stellar/JJ
performers/NNS
,/,
posted/VBD
a/DT
worse-than-expected/JJ
$/$
77.7/CD
million/CD
net/JJ
loss/NN
for/IN
the/DT
period/NN
./.
So/RB
far/RB
,/,
the/DT
industry/NN
's/POS
fourth/JJ
quarter/NN
is/VBZ
n't/RB
looking/VBG
too/RB
strong/JJ
either/RB
,/,
prompting/VBG
many/JJ
analysts/NNS
to/TO
slash/VB
earning/NN
projections/NNS
for/IN
the/DT
rest/NN
of/IN
the/DT
year/NN
by/IN
as/RB
much/JJ
as/IN
one-fourth/NN
./.
And/CC
they/PRP
say/VBP
the/DT
outlook/NN
for/IN
1990/CD
is/VBZ
nearly/RB
as/RB
bad/JJ
./.
Airlines/NNS
in/IN
1989/CD
``/``
came/VBD
in/IN
like/IN
a/DT
bang/NN
and/CC
are/VBP
going/VBG
out/IN
like/IN
a/DT
whimper/NN
,/,
''/''
said/VBD
Kevin/NNP
Murphy/NNP
,/,
an/DT
airline/NN
analyst/NN
at/IN
Morgan/NNP
Stanley/NNP
&/CC
Co/NNP
./.
This/DT
turn/NN
of/IN
events/NNS
has/VBZ
put/VBN
a/DT
big/JJ
damper/NN
on/IN
an/DT
industry/NN
that/WDT
seemed/VBD
almost/RB
invincible/JJ
last/JJ
spring/NN
,/,
when/WRB
fares/NNS
were/VBD
rising/VBG
at/IN
double-digit/JJ
rates/NNS
and/CC
many/JJ
carriers/NNS
seemed/VBD
to/TO
be/VB
growing/VBG
fat/JJ
on/IN
near-monopolies/NNS
in/IN
certain/JJ
markets/NNS
./.
Now/RB
,/,
many/JJ
airline/NN
companies/NNS
might/MD
become/VB
a/DT
lot/NN
less/RBR
attractive/JJ
as/IN
takeover/NN
targets/NNS
on/IN
Wall/NNP
Street/NNP
./.
The/DT
downturn/NN
also/RB
raises/VBZ
questions/NNS
about/IN
the/DT
carriers/NNS
'/POS
ambitious/JJ
orders/NNS
for/IN
new/JJ
airplanes/NNS
,/,
which/WDT
currently/RB
total/VBP
$/$
32.5/CD
billion/CD
over/IN
the/DT
next/JJ
three/CD
years/NNS
./.
For/IN
travelers/NNS
,/,
though/RB
,/,
the/DT
industry/NN
's/POS
problems/NNS
have/VBP
had/VBD
some/DT
positive/JJ
effects/NNS
./.
In/IN
recent/JJ
weeks/NNS
,/,
airlines/NNS
have/VBP
cut/VBN
numerous/JJ
fares/NNS
in/IN
leisure/NN
markets/NNS
to/TO
try/VB
to/TO
win/VB
back/RP
customers/NNS
./.
Others/NNS
have/VBP
tried/VBN
to/TO
spruce/VB
up/RP
frequent-flier/JJ
programs/NNS
./.
Previously/RB
,/,
airlines/NNS
were/VBD
limiting/VBG
the/DT
programs/NNS
because/IN
they/PRP
were/VBD
becoming/VBG
too/RB
expensive/JJ
./.
Just/RB
last/JJ
week/NN
,/,
for/IN
example/NN
,/,
Trans/NNP
World/NNP
Airlines/NNP
and/CC
Pan/NNP
Am/NNP
Corp./NNP
's/POS
Pan/NNP
American/NNP
World/NNP
Airways/NNP
went/VBD
so/RB
far/RB
as/IN
to/TO
offer/VB
cash/NN
rebates/NNS
or/CC
gift/NN
checks/NNS
of/IN
$/$
200/CD
to/TO
$/$
1,000/CD
to/TO
certain/JJ
frequent-flier/JJ
members/NNS
making/VBG
trans-Atlantic/JJ
flights/NNS
in/IN
business/NN
class/NN
or/CC
first/JJ
class/NN
./.
The/DT
industry/NN
's/POS
slowdown/NN
became/VBD
apparent/JJ
this/DT
month/NN
when/WRB
AMR/NNP
Corp./NNP
,/,
parent/NN
of/IN
American/NNP
Airlines/NNP
,/,
reported/VBD
an/DT
8.8/CD
%/NN
drop/NN
in/IN
third-quarter/JJ
net/JJ
income/NN
and/CC
said/VBD
its/PRP$
fourth/JJ
quarter/NN
would/MD
be/VB
``/``
disappointing/JJ
./.
''/''
Shortly/RB
before/IN
that/DT
,/,
USAir/NNP
had/VBD
said/VBD
its/PRP$
third-quarter/JJ
results/NNS
would/MD
be/VB
``/``
significantly/RB
lower/JJR
''/''
than/IN
a/DT
year/NN
earlier/RBR
./.
Yesterday/NN
,/,
it/PRP
provided/VBD
the/DT
details/NNS
:/:
Its/PRP$
loss/NN
of/IN
$/$
77.7/CD
million/CD
,/,
or/CC
$/$
1.86/CD
a/DT
share/NN
,/,
contrasted/VBN
with/IN
net/NN
of/IN
$/$
68.5/CD
million/CD
,/,
or/CC
$/$
1.58/CD
a/DT
share/NN
,/,
in/IN
the/DT
1988/CD
third/JJ
quarter/NN
./.
Revenue/NN
rose/VBD
only/RB
3.3/CD
%/NN
in/IN
the/DT
latest/JJS
period/NN
,/,
to/TO
$/$
1.53/CD
billion/CD
from/IN
$/$
1.48/CD
billion/CD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
the/DT
Arlington/NNP
,/,
Va./NNP
,/,
company/NN
's/POS
net/NN
plunged/VBD
73/CD
%/NN
to/TO
$/$
38.5/CD
million/CD
,/,
or/CC
76/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
142.2/CD
million/CD
,/,
or/CC
$/$
3.28/CD
a/DT
share/NN
./.
Revenue/NN
rose/VBD
12/CD
%/NN
to/TO
$/$
4.75/CD
billion/CD
from/IN
$/$
4.22/CD
billion/CD
./.
The/DT
results/NNS
surprised/VBD
many/JJ
analysts/NNS
,/,
because/IN
USAir/NNP
has/VBZ
almost/RB
no/DT
competition/NN
in/IN
its/PRP$
Pittsburgh/NNP
hub/NN
and/CC
has/VBZ
expanded/VBN
operations/NNS
by/IN
completing/VBG
its/PRP$
acquisition/NN
of/IN
Piedmont/NNP
Airlines/NNP
./.
Shortly/RB
after/IN
announcing/VBG
its/PRP$
quarterly/JJ
loss/NN
,/,
USAir/NNP
's/POS
stock/NN
tumbled/VBD
$/$
3/CD
a/DT
share/NN
./.
It/PRP
ended/VBD
at/IN
$/$
40.125/CD
,/,
down/RB
$/$
2.375/CD
,/,
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
``/``
Nobody/NN
was/VBD
expecting/VBG
this/DT
size/NN
of/IN
a/DT
loss/NN
,/,
''/''
said/VBD
Paul/NNP
Karos/NNP
,/,
an/DT
analyst/NN
with/IN
First/NNP
Boston/NNP
Corp/NNP
./.
One/CD
airline/NN
executive/NN
,/,
who/WP
declined/VBD
to/TO
be/VB
identified/VBN
,/,
called/VBD
the/DT
loss/NN
``/``
amazing/JJ
./.
''/''
In/IN
announcing/VBG
the/DT
results/NNS
,/,
USAir/NNP
cited/VBD
many/JJ
of/IN
the/DT
same/JJ
problems/NNS
that/IN
several/JJ
other/JJ
industry/NN
officials/NNS
have/VBP
named/VBN
recently/RB
./.
It/PRP
said/VBD
the/DT
industry/NN
's/POS
domestic/JJ
traffic/NN
was/VBD
flat/JJ
in/IN
the/DT
third/JJ
quarter/NN
;/:
analysts/NNS
say/VBP
this/DT
was/VBD
because/RB
hefty/JJ
fare/NN
increases/NNS
earlier/RBR
in/IN
the/DT
year/NN
scared/VBD
off/RP
many/JJ
leisure/NN
travelers/NNS
this/DT
summer/NN
./.
To/TO
try/VB
to/TO
combat/VB
the/DT
traffic/NN
slowdown/NN
,/,
airlines/NNS
started/VBD
reducing/VBG
fares/NNS
;/:
average/JJ
fares/NNS
rose/VBD
only/RB
1.7/CD
%/NN
in/IN
August/NNP
,/,
in/IN
contrast/NN
to/TO
increases/NNS
of/IN
16/CD
%/NN
each/DT
in/IN
February/NNP
and/CC
March/NNP
./.
But/CC
so/RB
far/RB
,/,
the/DT
effort/NN
has/VBZ
failed/VBN
,/,
and/CC
traffic/NN
is/VBZ
still/RB
slow/JJ
./.
Some/DT
other/JJ
fare/NN
promotions/NNS
have/VBP
backfired/VBN
./.
This/DT
summer/NN
,/,
the/DT
industry/NN
introduced/VBD
a/DT
``/``
kids/NNS
fly/VBP
free/JJ
''/''
program/NN
,/,
in/IN
which/WDT
children/NNS
were/VBD
allowed/VBN
to/TO
fly/VB
free/JJ
if/IN
they/PRP
were/VBD
traveling/VBG
with/IN
an/DT
adult/NN
./.
Airlines/NNS
tried/VBD
to/TO
restrict/VB
the/DT
program/NN
substantially/RB
by/IN
limiting/VBG
the/DT
offer/NN
to/TO
certain/JJ
days/NNS
of/IN
the/DT
week/NN
,/,
but/CC
it/PRP
still/RB
was/VBD
apparently/RB
used/VBN
far/RB
more/RBR
heavily/RB
than/IN
the/DT
airlines/NNS
expected/VBD
./.
Airlines/NNS
also/RB
say/VBP
their/PRP$
frequent-flier/JJ
programs/NNS
are/VBP
squeezing/VBG
profits/NNS
because/IN
awards/NNS
are/VBP
being/VBG
redeemed/VBN
at/IN
a/DT
heavier-than-normal/JJ
rate/NN
./.
One/CD
airline/NN
official/NN
said/VBD
about/RB
three/CD
times/NNS
as/IN
many/JJ
free-travel/JJ
coupons/NNS
are/VBP
being/VBG
turned/VBN
in/RP
as/IN
in/IN
previous/JJ
years/NNS
--/:
not/RB
surprisingly/RB
,/,
as/IN
the/DT
airlines/NNS
last/JJ
year/NN
allowed/VBD
many/JJ
travelers/NNS
to/TO
build/VB
up/RP
mileage/NN
at/IN
triple/RB
the/DT
normal/JJ
rate/NN
./.
Rising/VBG
operating/NN
expenses/NNS
are/VBP
another/DT
problem/NN
./.
Fuel/NN
costs/NNS
were/VBD
up/RB
10/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
./.
Labor/NN
costs/NNS
,/,
which/WDT
leveled/VBD
off/RP
in/IN
the/DT
past/JJ
few/JJ
years/NNS
because/IN
of/IN
lower/JJR
pay/NN
scales/NNS
for/IN
newer/JJR
employees/NNS
,/,
are/VBP
on/IN
the/DT
upswing/NN
again/RB
at/IN
many/JJ
carriers/NNS
./.
And/CC
some/DT
carriers/NNS
are/VBP
facing/VBG
other/JJ
unexpected/JJ
headaches/NNS
:/:
USAir/NNP
,/,
for/IN
example/NN
,/,
blamed/VBD
some/DT
of/IN
its/PRP$
loss/NN
on/IN
merger/NN
expenses/NNS
and/CC
on/IN
disruptions/NNS
caused/VBN
by/IN
Hurricane/NNP
Hugo/NNP
last/JJ
month/NN
./.
``/``
We/PRP
can/MD
not/RB
quantify/VB
the/DT
total/JJ
adverse/JJ
effects/NNS
of/IN
Hugo/NNP
,/,
''/''
said/VBD
Edwin/NNP
Colodny/NNP
,/,
chairman/NN
and/CC
president/NN
of/IN
USAir/NNP
Group/NNP
./.
Whatever/WDT
the/DT
cause/NN
for/IN
the/DT
downturn/NN
,/,
few/JJ
people/NNS
are/VBP
predicting/VBG
any/DT
sudden/JJ
improvement/NN
./.
Airline/NNP
Economics/NNP
Inc./NNP
,/,
an/DT
aviation/NN
consulting/NN
firm/NN
,/,
is/VBZ
projecting/VBG
an/DT
industrywide/JJ
operating/NN
profit/NN
of/IN
$/$
2.5/CD
billion/CD
for/IN
1989/CD
,/,
compared/VBN
with/IN
earlier/JJR
forecasts/NNS
of/IN
$/$
3/CD
billion/CD
to/TO
$/$
3.5/CD
billion/CD
./.
As/IN
for/IN
1990/CD
,/,
the/DT
firm/NN
predicts/VBZ
that/DT
profit/NN
will/MD
slip/VB
to/TO
between/IN
$/$
1/CD
billion/CD
and/CC
$/$
1.5/CD
billion/CD
./.
Good/JJ
grief/NN
!/.
Charlie/NNP
Brown/NNP
is/VBZ
selling/VBG
out/RP
./.
Those/DT
Metropolitan/NNP
Life/NNP
ads/NNS
were/VBD
bad/JJ
enough/RB
./.
But/CC
now/RB
,/,
Charlie/NNP
Brown/NNP
is/VBZ
about/RB
to/TO
start/VB
pitching/VBG
everything/NN
from/IN
Chex/NNP
Party/NNP
Mix/NNP
to/TO
light/NN
bulbs/NNS
./.
Why/WRB
is/VBZ
he/PRP
cashing/VBG
in/RP
now/RB
?/.
Turns/VBZ
out/RP
that/IN
next/JJ
year/NN
,/,
Charlie/NNP
Brown/NNP
,/,
Snoopy/NNP
and/CC
the/DT
gang/NN
turn/VBP
40/CD
--/:
and/CC
Scripps/NNP
Howard/NNP
's/POS
United/NNP
Media/NNP
unit/NN
,/,
the/DT
syndicator/NN
and/CC
licensing/NN
agent/NN
for/IN
Charles/NNP
Schulz/NNP
's/POS
comic/JJ
strip/NN
,/,
sees/VBZ
a/DT
bonanza/NN
in/IN
licensing/VBG
the/DT
cartoon/NN
characters/NNS
to/TO
a/DT
bevy/NN
of/IN
advertisers/NNS
for/IN
ads/NNS
,/,
tie-ins/NNS
and/CC
promotions/NNS
./.
``/``
Peanuts/NNP
has/VBZ
become/VBN
a/DT
major/JJ
part/NN
of/IN
American/JJ
culture/NN
,/,
''/''
says/VBZ
Peter/NNP
Shore/NNP
,/,
United/NNP
Media/NNP
's/POS
vice/NN
president/NN
of/IN
marketing/NN
and/CC
licensing/NN
./.
The/DT
comic/JJ
strip/NN
``/``
has/VBZ
a/DT
magical/JJ
,/,
everlasting/JJ
quality/NN
about/IN
it/PRP
./.
Our/PRP$
plan/NN
is/VBZ
to/TO
honor/VB
Charles/NNP
Schulz/NNP
and/CC
the/DT
strip/NN
all/DT
year/NN
long/RB
./.
''/''
The/DT
effort/NN
will/MD
make/VB
the/DT
Peanuts/NNP
gang/NN
very/RB
familiar/JJ
pitchmen/NNS
in/IN
1990/CD
./.
General/NNP
Electric/NNP
plans/VBZ
to/TO
use/VB
the/DT
characters/NNS
to/TO
plug/VB
its/PRP$
Miser/NNP
light/NN
bulb/NN
./.
Teleflora/NNP
will/MD
run/VB
TV/NN
ads/NNS
at/IN
Valentine/NNP
's/POS
Day/NNP
promoting/VBG
its/PRP$
``/``
Snoopy/NNP
's/POS
Love/NNP
Bouquet/NNP
./.
''/''
Ralston/NNP
Purina/NNP
will/MD
promote/VB
its/PRP$
Chex/NNP
Party/NNP
Mix/NNP
's/POS
three/CD
new/JJ
flavor/NN
packets/NNS
named/VBN
for/IN
Charlie/NNP
Brown/NNP
,/,
Lucy/NNP
and/CC
Linus/NNP
./.
The/DT
characters/NNS
will/MD
also/RB
be/VB
featured/VBN
in/IN
a/DT
new/JJ
public/JJ
service/NN
effort/NN
for/IN
the/DT
United/NNP
Way/NN
./.
Beyond/IN
the/DT
advertisements/NNS
,/,
the/DT
syndicator/NN
is/VBZ
planning/VBG
a/DT
traveling/VBG
arena/NN
show/NN
,/,
new/JJ
TV/NN
specials/NNS
for/IN
CBS/NNP
and/CC
even/RB
an/DT
exhibit/NN
at/IN
the/DT
Smithsonian/NNP
Institute/NNP
./.
The/DT
yearlong/JJ
schedule/NN
of/IN
festivities/NNS
will/MD
be/VB
kicked/VBN
off/RP
officially/RB
with/IN
a/DT
combination/NN
live/JJ
and/CC
animation/NN
half-time/NN
special/NN
at/IN
the/DT
Super/NNP
Bowl/NNP
in/IN
January/NNP
./.
All/PDT
the/DT
tie-ins/NN
,/,
though/RB
,/,
have/VBP
some/DT
marketing/NN
experts/NNS
questioning/VBG
whether/IN
the/DT
party/NN
may/MD
go/VB
too/RB
far/RB
./.
``/``
There/EX
are/VBP
too/RB
many/JJ
people/NNS
participating/VBG
,/,
''/''
says/VBZ
Al/NNP
Ries/NNP
,/,
of/IN
Trout/NNP
&/CC
Ries/NNP
,/,
a/DT
Greenwich/NNP
,/,
Conn./NNP
,/,
marketing/NN
consulting/NN
firm/NN
./.
``/``
If/IN
you/PRP
want/VBP
to/TO
cut/VB
through/IN
the/DT
clutter/NN
,/,
you/PRP
have/VBP
to/TO
make/VB
your/PRP$
message/NN
as/IN
distinct/JJ
,/,
sharp/JJ
and/CC
individual/JJ
as/IN
possible/JJ
./.
Sharing/VBG
a/DT
character/NN
with/IN
other/JJ
advertisers/NNS
is/VBZ
n't/RB
a/DT
way/NN
to/TO
do/VB
that/DT
./.
''/''
But/CC
United/NNP
Media/NNP
says/VBZ
it/PRP
's/VBZ
very/RB
scrupulous/JJ
with/IN
the/DT
contracts/NNS
it/PRP
hands/VBZ
out/RP
./.
``/``
We/PRP
're/VBP
not/RB
interested/JJ
in/IN
promoting/VBG
every/DT
single/JJ
product/NN
that/WDT
comes/VBZ
along/RB|RP
,/,
''/''
Mr./NNP
Shore/NNP
says/VBZ
./.
Metropolitan/NNP
Life/NNP
ad/NN
executives/NNS
could/MD
n't/RB
be/VB
reached/VBN
about/IN
the/DT
use/NN
of/IN
the/DT
Peanuts/NNP
characters/NNS
by/IN
others/NNS
./.
But/CC
Mr./NNP
Shore/NNP
says/VBZ
that/DT
company/NN
's/POS
exclusive/JJ
advertising/NN
rights/NNS
extend/VBP
only/RB
to/TO
the/DT
insurance/NN
and/CC
financial/JJ
services/NNS
category/NN
./.
Berry/NNP
Rejoins/VBZ
WPP/NNP
Group/NNP
Norman/NNP
Berry/NNP
,/,
the/DT
creative/JJ
executive/NN
who/WP
was/VBD
apparently/RB
squeezed/VBN
out/IN
of/IN
Ogilvy/NNP
&/CC
Mather/NNP
in/IN
June/NNP
,/,
is/VBZ
returning/VBG
to/TO
Ogilvy/NNP
's/POS
parent/JJ
company/NN
,/,
WPP/NNP
Group/NNP
PLC/NNP
./.
Mr./NNP
Berry/NNP
,/,
58/CD
,/,
had/VBD
resigned/VBN
after/IN
being/VBG
asked/VBD
by/IN
Ogilvy/NNP
's/POS
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
Kenneth/NNP
Roman/NNP
,/,
to/TO
give/VB
up/RP
his/PRP$
title/NN
as/IN
creative/JJ
head/NN
of/IN
the/DT
New/NNP
York/NNP
office/NN
and/CC
to/TO
take/VB
a/DT
fuzzier/JJR
international/JJ
role/NN
./.
Yesterday/NN
,/,
just/RB
a/DT
day/NN
after/IN
Mr./NNP
Roman/NNP
announced/VBD
he/PRP
would/MD
leave/VB
to/TO
take/VB
a/DT
top/JJ
post/NN
at/IN
American/NNP
Express/NNP
,/,
WPP/NNP
said/VBD
Mr./NNP
Berry/NNP
would/MD
return/VB
to/TO
take/VB
an/DT
international/JJ
role/NN
at/IN
the/DT
parent/JJ
company/NN
./.
Mr./NNP
Berry/NNP
said/VBD
the/DT
timing/NN
was/VBD
a/DT
coincidence/NN
and/CC
that/DT
his/PRP$
decision/NN
was/VBD
unrelated/JJ
to/TO
Mr./NNP
Roman/NNP
's/POS
departure/NN
./.
RJR/NNP
Taps/VBZ
FCB\/Leber/NNP
RJR/NNP
Nabisco/NNP
Inc./NNP
awarded/VBD
its/PRP$
national/JJ
broadcast/NN
media-buying/JJ
assignment/NN
to/TO
FCB\/Leber/NNP
Katz/NNP
Partners/NNP
,/,
the/DT
New/NNP
York/NNP
outpost/NN
of/IN
Chicago-based/JJ
Foote/NNP
,/,
Cone/NNP
&/CC
Belding/NNP
./.
The/DT
naming/NN
of/IN
FCB\/Leber/NNP
Katz/NNP
Partners/NNP
as/IN
agency/NN
of/IN
record/NN
for/IN
Nabisco/NNP
Brands/NNP
Inc./NNP
and/CC
Planters/NNP
LifeSavers/NNP
Co./NNP
follows/VBZ
RJR/NNP
Nabisco/NNP
's/POS
announcement/NN
last/JJ
week/NN
that/IN
it/PRP
will/MD
disband/VB
its/PRP$
RJR/NNP
Nabisco/NNP
Broadcast/NNP
division/NN
and/CC
dismiss/VB
its/PRP$
14/CD
employees/NNS
Dec./VB
1./CD
to/TO
cut/VB
costs/NNS
./.
New/NNP
York-based/JJ
RJR/NNP
Nabisco/NNP
would/MD
n't/RB
say/VB
what/WP
it/PRP
spends/VBZ
annually/RB
,/,
but/CC
industry/NN
executives/NNS
say/VBP
it/PRP
will/MD
spend/VB
more/JJR
than/IN
$/$
140/CD
million/CD
this/DT
year/NN
,/,
down/IN
from/IN
about/RB
$/$
200/CD
million/CD
last/JJ
year/NN
./.
Ad/NN
Notes/NNS
.../:
./.
EARNINGS/NNS
:/:
Interpublic/NNP
Group/NNP
of/IN
Cos./NNP
said/VBD
third-quarter/JJ
net/NN
rose/VBD
15/CD
%/NN
to/TO
$/$
6.9/CD
million/CD
,/,
or/CC
21/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
6/CD
million/CD
,/,
or/CC
18/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
year-earlier/JJ
period/NN
./.
Revenue/NN
increased/VBD
more/JJR
than/IN
5/CD
%/NN
to/TO
$/$
283.2/CD
million/CD
from/IN
$/$
268.6/CD
million/CD
./.
HOLIDAY/NN
PROMOTION/NNP
:/:
PepsiCo/NNP
Inc./NNP
will/MD
give/VB
away/RP
4,000/CD
sets/NNS
of/IN
``/``
Game/NNP
Boy/NNP
,/,
''/''
Nintendo/NNP
's/POS
new/JJ
hand-held/JJ
video/NN
game/NN
in/IN
a/DT
two-month/JJ
promotion/NN
scheduled/VBN
to/TO
begin/VB
Nov./NNP
1/CD
./.
Pepsi/NNS
said/VBD
it/PRP
will/MD
spend/VB
$/$
10/CD
million/CD
advertising/VBG
the/DT
promotion/NN
./.
International/NNP
Business/NNP
Machines/NNP
Corp./NNP
agreed/VBD
to/TO
acquire/VB
a/DT
15/CD
%/NN
stake/NN
in/IN
Paxus/NNP
Corp./NNP
,/,
an/DT
Australian/JJ
computer-software/NN
and/CC
information-services/NNS
concern/NN
,/,
for/IN
20/CD
million/CD
Australian/JJ
dollars/NNS
US$/$
17/CD
million/CD
The/DT
investment/NN
will/MD
be/VB
made/VBN
through/IN
IBM/NNP
Australia/NNP
Ltd./NNP
,/,
a/DT
unit/NN
of/IN
IBM/NNP
,/,
the/DT
two/CD
companies/NNS
said/VBD
yesterday/NN
./.
IBM/NNP
can/MD
raise/VB
its/PRP$
stake/NN
in/IN
Paxus/NN
to/TO
20/CD
%/NN
over/IN
three/CD
years/NNS
,/,
but/CC
agreed/VBD
to/TO
not/RB
go/VB
beyond/IN
20/CD
%/NN
in/IN
that/DT
time/NN
./.
Paxus/NNP
said/VBD
in/IN
a/DT
statement/NN
it/PRP
has/VBZ
several/JJ
``/``
well/RB
developed/JJ
product/NN
and/CC
services/NNS
relationships/NNS
''/''
with/IN
the/DT
U.S./NNP
computer/NN
company/NN
,/,
and/CC
plans/NNS
to/TO
expand/VB
these/DT
links/NNS
./.
The/DT
company/NN
earns/VBZ
about/RB
half/PDT
its/PRP$
revenue/NN
overseas/RB
and/CC
plans/VBZ
further/JJ
expansion/NN
./.
A/DT
majority/NN
stake/NN
in/IN
Paxus/NNP
currently/RB
held/VBN
by/IN
NZI/NNP
Corp./NNP
will/MD
be/VB
diluted/VBN
to/TO
slightly/RB
less/JJR
than/IN
50/CD
%/NN
after/IN
IBM/NNP
acquires/VBZ
its/PRP$
interest/NN
./.
The/DT
agreement/NN
requires/VBZ
approval/NN
from/IN
Australia/NNP
's/POS
Foreign/NNP
Investment/NNP
Review/NNP
Board/NNP
and/CC
National/NNP
Companies/NNP
and/CC
Securities/NNP
Commission/NNP
,/,
and/CC
from/IN
shareholders/NNS
of/IN
Paxus/NNP
./.
Bond/NNP
Corp/NNP
./.
Holdings/NNP
Ltd./NNP
's/POS
consolidated/JJ
debt/NN
totals/VBZ
6.9/CD
billion/CD
Australian/JJ
dollars/NNS
US$/$
5.32/CD
billion/CD
A$/$
1.6/CD
billion/CD
of/IN
bonds/NNS
convertible/JJ
into/IN
shares/NNS
./.
Alan/NNP
Bond/NNP
,/,
chairman/NN
and/CC
controlling/JJ
shareholder/NN
of/IN
the/DT
cash-strapped/JJ
Australian/JJ
media/NNS
,/,
brewing/NN
,/,
resources/NNS
and/CC
property/NN
concern/NN
,/,
disclosed/VBD
the/DT
debt/NN
figures/NNS
yesterday/NN
./.
The/DT
disclosure/NN
follows/VBZ
last/JJ
Friday/NNP
's/POS
news/NN
that/IN
Bond/NNP
Corp./NNP
incurred/VBD
an/DT
overall/JJ
loss/NN
of/IN
A$/$
980.2/CD
million/CD
for/IN
the/DT
fiscal/JJ
year/NN
ended/VBN
June/NNP
30/CD
,/,
the/DT
largest/JJS
loss/NN
in/IN
Australian/JJ
corporate/JJ
history/NN
./.
The/DT
debt/NN
load/NN
would/MD
have/VB
been/VBN
higher/JJR
but/CC
for/IN
a/DT
reduction/NN
of/IN
A$/$
5/CD
billion/CD
over/IN
the/DT
past/JJ
year/NN
from/IN
asset/NN
sales/NNS
,/,
Mr./NNP
Bond/NNP
said/VBD
at/IN
a/DT
business/NN
gathering/NN
./.
Mr./NNP
Bond/NNP
indicated/VBD
the/DT
consolidated/JJ
debt/NN
figures/NNS
,/,
which/WDT
include/VBP
debt/NN
of/IN
units/NNS
such/JJ
as/IN
Bell/NNP
Group/NNP
Ltd./NNP
,/,
will/MD
be/VB
published/VBN
soon/RB
in/IN
Bond/NNP
Corp./NNP
's/POS
1989/CD
annual/JJ
accounts/NNS
./.
He/PRP
predicted/VBD
the/DT
debt/NN
will/MD
be/VB
reduced/VBN
by/IN
another/DT
A$/$
3.8/CD
billion/CD
this/DT
fiscal/JJ
year/NN
ending/VBG
June/NNP
30/CD
,/,
1990/CD
,/,
but/CC
did/VBD
n't/RB
explain/VB
how/WRB
this/DT
will/MD
be/VB
achieved/VBN
./.
Mr./NNP
Bond/NNP
blamed/VBD
rising/VBG
Australian/JJ
interest/NN
rates/NNS
and/CC
the/DT
acquisition/NN
of/IN
Bell/NNP
Group/NNP
``/``
with/IN
its/PRP$
very/RB
high/JJ
levels/NNS
of/IN
shortterm/JJ
debt/NN
''/''
for/IN
producing/VBG
a/DT
condition/NN
``/``
that/DT
was/VBD
no/DT
longer/RBR
sustainable/JJ
./.
``/``
In/IN
order/NN
to/TO
restore/VB
confidence/NN
and/CC
ensure/VB
the/DT
support/NN
of/IN
our/PRP$
principal/JJ
lenders/NNS
,/,
''/''
Mr./NNP
Bond/NNP
said/VBD
,/,
``/``
we/PRP
embarked/VBD
on/IN
fundamantal/JJ
changes/NNS
in/IN
the/DT
structure/NN
and/CC
direction/NN
of/IN
the/DT
group/NN
./.
''/''
That/DT
reassessment/NN
resulted/VBD
in/IN
continuing/JJ
asset/NN
sales/NNS
,/,
as/RB
well/RB
as/IN
write-offs/NNS
exceeding/VBG
A$/$
1.1/CD
billion/CD
last/JJ
fiscal/JJ
year/NN
./.
``/``
In/IN
essence/NN
we/PRP
have/VBP
made/VBN
a/DT
decision/NN
to/TO
clear/VB
the/DT
decks/NNS
,/,
''/''
Mr./NNP
Bond/NNP
told/VBD
the/DT
meeting/NN
./.
While/IN
some/DT
assets/NNS
have/VBP
been/VBN
written/VBN
down/RP
,/,
others/NNS
are/VBP
undervalued/VBN
in/IN
the/DT
accounts/NNS
,/,
Mr./NNP
Bond/NNP
maintained/VBD
./.
Among/IN
these/DT
are/VBP
the/DT
company/NN
's/POS
Australian/JJ
brewing/NN
assets/NNS
,/,
in/IN
the/DT
books/NNS
at/IN
A$/$
950/CD
million/CD
but/CC
actually/RB
worth/JJ
A$/$
2.5/CD
billion/CD
,/,
he/PRP
said/VBD
./.
An/DT
investment/NN
in/IN
Chile/NNP
's/POS
telephone/NN
company/NN
is/VBZ
carried/VBN
at/IN
US$/$
300/CD
million/CD
but/CC
really/RB
worth/JJ
US$/$
500/CD
million/CD
,/,
and/CC
the/DT
company/NN
's/POS
property/NN
portfolio/NN
is/VBZ
undervalued/VBN
by/IN
at/IN
least/JJS
A$/$
250/CD
million/CD
,/,
Mr./NNP
Bond/NNP
said/VBD
./.
Mr./NNP
Bond/NNP
forecast/VBD
that/IN
by/IN
next/JJ
June/NNP
,/,
``/``
what/WP
will/MD
emerge/VB
will/MD
be/VB
a/DT
company/NN
with/IN
a/DT
honed/JJ
sense/NN
of/IN
purpose/NN
.../:
a/DT
stable/JJ
balance/NN
sheet/NN
,/,
with/IN
good-quality/JJ
assets/NNS
in/IN
brewing/NN
,/,
telecommunications/NN
,/,
media/NNS
and/CC
property/NN
./.
''/''
He/PRP
did/VBD
n't/RB
name/VB
energy/NN
resources/NNS
in/IN
that/DT
list/NN
,/,
signaling/VBG
that/IN
all/PDT
the/DT
company/NN
's/POS
coal/NN
and/CC
oil/NN
interests/NNS
might/MD
be/VB
for/IN
sale/NN
in/IN
total/NN
or/CC
in/IN
part/NN
./.
Some/DT
of/IN
the/DT
oil/NN
interests/NNS
already/RB
have/VBP
been/VBN
sold/VBN
./.
Mercedes-Benz/NNP
of/IN
North/NNP
America/NNP
Inc./NNP
,/,
Grosse/NNP
Pointe/NNP
Shores/NNP
,/,
Mich./NNP
,/,
estimated/VBD
it/PRP
will/MD
sell/VB
about/RB
as/RB
many/JJ
cars/NNS
in/IN
1990/CD
as/IN
the/DT
75,000/CD
it/PRP
expects/VBZ
to/TO
deliver/VB
this/DT
year/NN
./.
Mercedes/NNP
officials/NNS
said/VBD
they/PRP
expect/VBP
flat/JJ
sales/NNS
next/IN
year/NN
even/RB
though/IN
they/PRP
see/VBP
the/DT
U.S./NNP
luxury-car/NN
market/NN
expanding/VBG
slightly/RB
./.
Erich/NNP
Krampe/NNP
,/,
president/NN
of/IN
the/DT
U.S./NNP
sales/NNS
arm/NN
of/IN
West/JJ
German/JJ
auto/NN
maker/NN
Daimler/NNP
Benz/NNP
AG/NNP
,/,
predicted/VBD
luxury-car/NN
sales/NNS
will/MD
rise/VB
to/TO
840,000/CD
in/IN
1990/CD
from/IN
830,000/CD
this/DT
year/NN
primarily/RB
because/IN
of/IN
the/DT
new/JJ
Japanese/JJ
makes/NNS
./.
Most/JJS
of/IN
the/DT
growth/NN
,/,
he/PRP
said/VBD
,/,
will/MD
come/VB
in/IN
the/DT
$/$
35,000-to-$50,000/CD
price/NN
range/NN
,/,
where/WRB
Mercedes/NNP
has/VBZ
a/DT
35/CD
%/NN
U.S./NNP
market/NN
share/NN
./.
Mercedes/NNP
sold/VBD
82,348/CD
cars/NNS
in/IN
1988/CD
./.
Mr./NNP
Krampe/NNP
also/RB
said/VBD
that/IN
Mercedes/NNP
plans/NNS
to/TO
bring/VB
out/RP
new/JJ
models/NNS
every/DT
year/NN
through/IN
the/DT
mid-1990s/NNS
and/CC
it/PRP
will/MD
shorten/VB
its/PRP$
product/NN
development/NN
cycle/NN
to/TO
eight/CD
years/NNS
from/IN
10/CD
or/CC
12/CD
years/NNS
to/TO
compete/VB
more/RBR
effectively/RB
with/IN
Toyota/NNP
Motor/NNP
Corp./NNP
's/POS
Lexus/NNP
,/,
Nissan/NNP
Motor/NNP
Co./NNP
's/POS
Infiniti/NNP
and/CC
Honda/NNP
Motor/NNP
Co./NNP
's/POS
Acura/NNP
luxury-car/NN
divisions/NNS
./.
Homestake/NNP
Mining/NNP
Co./NNP
,/,
San/NNP
Francisco/NNP
,/,
blamed/VBD
the/DT
continued/JJ
slump/NN
in/IN
gold/JJ
prices/NNS
for/IN
an/DT
83/CD
%/NN
plunge/NN
in/IN
third-quarter/JJ
net/JJ
income/NN
to/TO
$/$
2/CD
million/CD
,/,
or/CC
two/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
11.2/CD
million/CD
,/,
or/CC
12/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Revenue/NN
rose/VBD
5/CD
%/NN
to/TO
$/$
110.4/CD
million/CD
from/IN
$/$
105.4/CD
million/CD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Homestake/NNP
closed/VBD
at/IN
$/$
15.25/CD
,/,
down/RB
25/CD
cents/NNS
./.
``/``
A/DT
significant/JJ
increase/NN
in/IN
gold/JJ
sales/NNS
to/TO
248,279/CD
ounces/NNS
for/IN
the/DT
quarter/NN
from/IN
188,726/CD
in/IN
the/DT
third/JJ
quarter/NN
of/IN
1988/CD
was/VBD
more/RBR
than/IN
offset/VBN
by/IN
the/DT
continued/JJ
decline/NN
in/IN
average/JJ
gold/JJ
price/NN
realization/NN
to/TO
$/$
367/CD
from/IN
$/$
429/CD
per/IN
ounce/NN
,/,
''/''
the/DT
company/NN
said/VBD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
the/DT
mining/NN
company/NN
posted/VBD
a/DT
40/CD
%/NN
drop/NN
in/IN
profit/NN
to/TO
$/$
30.1/CD
million/CD
,/,
or/CC
31/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
50.6/CD
million/CD
,/,
or/CC
52/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
a/DT
6/CD
%/NN
rise/NN
in/IN
revenue/NN
to/TO
$/$
323.2/CD
million/CD
from/IN
$/$
305.7/CD
million/CD
./.
The/DT
Treasury/NNP
plans/VBZ
to/TO
raise/VB
$/$
1.8/CD
billion/CD
in/IN
new/JJ
cash/NN
with/IN
the/DT
sale/NN
Monday/NNP
of/IN
about/RB
$/$
15.6/CD
billion/CD
in/IN
short-term/JJ
bills/NNS
to/TO
redeem/VB
$/$
13.81/CD
billion/CD
in/IN
maturing/VBG
bills/NNS
./.
The/DT
offering/NN
will/MD
be/VB
divided/VBN
evenly/RB
between/IN
13-week/JJ
and/CC
26-week/JJ
bills/NNS
maturing/VBG
Feb./NNP
1/CD
,/,
1990/CD
,/,
and/CC
May/NNP
3/CD
,/,
1990/CD
,/,
respectively/RB
./.
Tenders/NNS
for/IN
the/DT
bills/NNS
,/,
available/JJ
in/IN
minimum/JJ
$/$
10,000/CD
denominations/NNS
,/,
must/MD
be/VB
received/VBN
by/IN
1/CD
p.m./NN
EST/NNP
Monday/NNP
at/IN
the/DT
Treasury/NNP
or/CC
at/IN
Federal/NNP
Reserve/NNP
banks/NNS
or/CC
branches/NNS
./.
The/DT
Treasury/NNP
said/VBD
it/PRP
will/MD
alter/VB
the/DT
auctions/NNS
unless/IN
it/PRP
has/VBZ
assurance/NN
of/IN
enactment/NN
of/IN
legislation/NN
to/TO
raise/VB
the/DT
statutory/JJ
debt/NN
limit/NN
before/IN
the/DT
scheduled/JJ
auctions/NNS
Monday/NNP
./.
Apogee/NNP
Enterprises/NNP
Inc./NNP
said/VBD
profit/NN
for/IN
the/DT
third/JJ
quarter/NN
ending/VBG
Dec./NNP
2/CD
will/MD
fall/VB
below/IN
the/DT
year-earlier/JJ
results/NNS
because/IN
of/IN
an/DT
after-tax/JJ
charge/NN
of/IN
$/$
1.9/CD
million/CD
related/VBN
to/TO
a/DT
project/NN
that/WDT
was/VBD
guaranteed/VBN
by/IN
the/DT
company/NN
./.
A/DT
year/NN
ago/RB
,/,
the/DT
Minneapolis/NNP
glass/NN
products/NNS
and/CC
aluminum/NN
window/NN
maker/NN
earned/VBD
$/$
4/CD
million/CD
,/,
or/CC
30/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
114/CD
million/CD
./.
Apogee/NNP
said/VBD
the/DT
charge/NN
stems/VBZ
from/IN
a/DT
building/NN
supply/NN
contract/NN
in/IN
which/WDT
the/DT
company/NN
guaranteed/VBD
a/DT
contractor/NN
's/POS
performance/NN
./.
Apogee/NNP
said/VBD
a/DT
subcontractor/NN
had/VBD
severe/JJ
cost/NN
overruns/NNS
and/CC
was/VBD
unable/JJ
to/TO
fulfill/VB
the/DT
contract/NN
terms/NNS
on/IN
its/PRP$
own/JJ
,/,
making/VBG
it/PRP
necessary/JJ
for/IN
Apogee/NNP
to/TO
advance/VB
cash/NN
to/TO
ensure/VB
completion/NN
of/IN
the/DT
project/NN
./.
The/DT
company/NN
said/VBD
its/PRP$
core/JJ
businesses/NNS
have/VBP
performed/VBN
well/RB
and/CC
it/PRP
expects/VBZ
them/PRP
to/TO
continue/VB
to/TO
do/VB
so/RB
in/IN
the/DT
remainder/NN
of/IN
the/DT
fiscal/JJ
year/NN
./.
Japan/NNP
's/POS
production/NN
of/IN
cars/NNS
,/,
trucks/NNS
and/CC
buses/NNS
in/IN
September/NNP
fell/VBD
4.1/CD
%/NN
from/IN
a/DT
year/NN
ago/IN
to/TO
1,120,317/CD
units/NNS
because/IN
of/IN
a/DT
slip/NN
in/IN
exports/NNS
,/,
the/DT
Japan/NNP
Automobile/NNP
Manufacturers/NNPS
'/POS
Association/NN
said/VBD
./.
Domestic/JJ
demand/NN
continues/VBZ
to/TO
grow/VB
,/,
but/CC
its/PRP$
contribution/NN
to/TO
higher/JJR
production/NN
was/VBD
sapped/VBN
in/IN
September/NNP
by/IN
the/DT
estimated/VBN
2/CD
%/NN
fall/NN
in/IN
imports/NNS
,/,
accompanied/VBN
by/IN
a/DT
growing/VBG
tendency/NN
for/IN
Japanese/JJ
manufacturers/NNS
to/TO
build/VB
vehicles/NNS
overseas/RB
,/,
according/VBG
to/TO
the/DT
association/NN
./.
The/DT
association/NN
said/VBD
domestic/JJ
demand/NN
grew/VBD
8.8/CD
%/NN
in/IN
September/NNP
./.
Demand/NN
has/VBZ
been/VBN
growing/VBG
consistently/RB
under/IN
the/DT
encouragement/NN
of/IN
pro-consumption/NN
government/NN
policies/NNS
,/,
an/DT
association/NN
spokesman/NN
said/VBD
./.
He/PRP
also/RB
said/VBD
the/DT
introduction/NN
of/IN
a/DT
3/CD
%/NN
consumption/NN
tax/NN
in/IN
April/NNP
has/VBZ
helped/VBN
sales/NNS
./.
The/DT
new/JJ
tax/NN
,/,
though/IN
a/DT
source/NN
of/IN
general/JJ
resentment/NN
among/IN
Japanese/JJ
taxpayers/NNS
,/,
replaced/VBD
a/DT
higher/JJR
commodities/NNS
tax/NN
that/WDT
applied/VBD
to/TO
automobiles/NNS
./.
Japanese/JJ
domestic/JJ
motor-vehicle/NN
sales/NNS
rose/VBD
12/CD
%/NN
in/IN
September/NNP
,/,
the/DT
Japan/NNP
Automobile/NNP
Dealers/NNPS
'/POS
Association/NN
said/VBD
earlier/RBR
this/DT
month/NN
./.
The/DT
manufacturers/NNS
'/POS
association/NN
will/MD
issue/VB
statistics/NNS
on/IN
vehicle/NN
exports/NNS
later/RB
this/DT
month/NN
./.
Production/NN
of/IN
cars/NNS
rose/VBD
to/TO
801,835/CD
units/NNS
in/IN
September/NNP
,/,
a/DT
5.5/CD
%/NN
increase/NN
from/IN
a/DT
year/NN
earlier/RBR
./.
Midsized/JJ
cars/NNS
accounted/VBD
for/IN
the/DT
greatest/JJS
growth/NN
in/IN
units/NNS
,/,
rising/VBG
62,872/CD
units/NNS
to/TO
134,550/CD
units/NNS
,/,
or/CC
88/CD
%/NN
./.
Minicar/JJ
output/NN
more/JJR
than/IN
tripled/VBN
./.
Manufacturers/NNS
produced/VBD
46,835/CD
of/IN
the/DT
vehicles/NNS
--/:
which/WDT
have/VBP
engines/NNS
of/IN
500/CD
cubic/JJ
centimeters/NNS
or/CC
less/JJR
--/:
an/DT
increase/NN
of/IN
31,777/CD
units/NNS
./.
Total/JJ
truck/NN
production/NN
fell/VBD
22/CD
%/NN
from/IN
a/DT
year/NN
earlier/JJR
to/TO
315,546/CD
units/NNS
./.
Minitruck/NN
production/NN
fell/VBD
13/CD
%/NN
to/TO
94,243/CD
units/NNS
./.
Bus/NN
production/NN
also/RB
slipped/VBD
,/,
by/IN
49/CD
%/NN
from/IN
a/DT
year/NN
earlier/JJR
to/TO
2,936/CD
units/NNS
./.
The/DT
association/NN
spokesman/NN
said/VBD
bus/NN
production/NN
has/VBZ
declined/VBN
since/IN
January/NNP
,/,
but/CC
could/MD
n't/RB
offer/VB
an/DT
explanation/NN
for/IN
the/DT
fall/NN
./.
Auto/NN
production/NN
for/IN
the/DT
first/JJ
half/DT
of/IN
the/DT
fiscal/JJ
year/NN
,/,
which/WDT
began/VBD
in/IN
August/NNP
,/,
totaled/VBD
6,379,884/CD
units/NNS
,/,
the/DT
association/NN
said/VBD
./.
Half-year/JJ
production/NN
was/VBD
up/IN
3.4/CD
%/NN
compared/VBN
with/IN
the/DT
same/JJ
period/NN
a/DT
year/NN
earlier/RBR
./.
Stock/NNP
of/IN
United/NNP
Airlines/NNPS
parent/NN
UAL/NNP
Corp./NNP
gyrated/VBD
wildly/RB
yesterday/NN
amid/IN
speculation/NN
that/IN
one/CD
or/CC
more/JJR
investors/NNS
may/MD
challenge/VB
the/DT
UAL/NNP
board/NN
's/POS
decision/NN
to/TO
remain/VB
independent/JJ
instead/RB
of/IN
pursuing/VBG
a/DT
buy-out/JJ
or/CC
other/JJ
transaction/NN
./.
The/DT
board/NN
's/POS
decision/NN
,/,
announced/VBN
after/IN
the/DT
market/NN
closed/VBN
Monday/NNP
,/,
initially/RB
prompted/VBD
a/DT
severe/JJ
sell-off/NN
in/IN
UAL/NNP
shares/NNS
,/,
which/WDT
at/IN
midday/NN
traded/VBD
as/RB
low/JJ
as/IN
$/$
145/CD
a/DT
share/NN
,/,
down/IN
$/$
33/CD
a/DT
share/NN
,/,
in/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
The/DT
deepening/VBG
bloodbath/NN
for/IN
takeover-stock/JJ
traders/NNS
,/,
who/WP
by/IN
then/RB
had/VBD
seen/VBN
UAL/NNP
stock/NN
tumble/VB
49/CD
%/NN
since/IN
Oct./NNP
12/CD
,/,
also/RB
triggered/VBD
a/DT
marketwide/JJ
sell-off/NN
that/WDT
sent/VBD
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
down/IN
more/RBR
than/IN
80/CD
points/NNS
at/IN
10:40/CD
a.m/RB
./.
But/CC
then/RB
steady/JJ
,/,
concentrated/VBN
buying/NN
by/IN
Bear/NNP
,/,
Stearns/NNP
&/CC
Co./NNP
,/,
which/WDT
frequently/RB
buys/VBZ
stock/NN
for/IN
corporate/JJ
raiders/NNS
,/,
took/VBD
hold/NN
and/CC
steadied/VBD
the/DT
fall/NN
in/IN
UAL/NNP
,/,
which/WDT
eventually/RB
buoyed/VBD
the/DT
entire/JJ
market/NN
./.
The/DT
industrial/JJ
average/NN
closed/VBN
down/IN
only/RB
3.69/CD
points/NNS
at/IN
2659.22/CD
./.
Late/RB
in/IN
the/DT
afternoon/NN
,/,
several/JJ
big/JJ
purchases/NNS
by/IN
Bear/NNP
,/,
Stearns/NNP
,/,
particularly/RB
a/DT
block/NN
of/IN
200,000/CD
shares/NNS
at/IN
2:43/CD
p.m./NN
at/IN
$/$
150/CD
a/DT
share/NN
,/,
triggered/VBD
a/DT
buying/VBG
spree/NN
that/WDT
took/VBD
UAL/NNP
up/IN
more/RBR
than/IN
18/CD
points/NNS
in/IN
the/DT
final/JJ
hour/NN
of/IN
trading/NN
./.
UAL/NNP
stock/NN
closed/VBD
at/IN
$/$
170/CD
a/DT
share/NN
,/,
down/IN
$/$
8.375/CD
./.
Volume/NN
was/VBD
a/DT
tumultuous/JJ
4.9/CD
million/CD
shares/NNS
,/,
or/CC
22/CD
%/NN
of/IN
the/DT
21.8/CD
million/CD
UAL/NNP
shares/NNS
outstanding/JJ
./.
Traders/NNS
estimated/VBD
that/IN
Bear/NNP
,/,
Stearns/NNP
bought/VBD
more/JJR
than/IN
1/CD
million/CD
shares/NNS
./.
The/DT
two/CD
most/RBS
frequently/RB
rumored/VBN
buyers/NNS
,/,
neither/CC
of/IN
whom/WP
would/MD
comment/VB
,/,
were/VBD
Coniston/NNP
Partners/NNPS
,/,
which/WDT
battled/VBD
the/DT
UAL/NNP
board/NN
in/IN
1987/CD
,/,
and/CC
New/NNP
York/NNP
real/JJ
estate/NN
developer/NN
Donald/NNP
Trump/NNP
,/,
who/WP
recently/RB
made/VBD
and/CC
withdrew/VBD
an/DT
offer/NN
for/IN
American/NNP
Airlines/NNPS
parent/NN
AMR/NNP
Corp/NNP
./.
However/RB
,/,
one/CD
person/NN
familiar/JJ
with/IN
UAL/NNP
said/VBD
the/DT
signs/NNS
pointed/VBD
to/TO
Coniston/NNP
because/IN
Mr./NNP
Trump/NNP
has/VBZ
n't/RB
asked/VBD
for/IN
permission/NN
to/TO
buy/VB
more/JJR
than/IN
$/$
15/CD
million/CD
of/IN
stock/NN
under/IN
federal/JJ
antitrust/JJ
rules/NNS
./.
Takeover-stock/JJ
traders/NNS
,/,
stung/VBN
by/IN
their/PRP$
huge/JJ
losses/NNS
in/IN
UAL/NNP
stock/NN
,/,
remained/VBN
eager/JJ
for/IN
some/DT
action/NN
by/IN
an/DT
outside/JJ
catalyst/NN
following/VBG
the/DT
collapse/NN
Oct./NNP
13/CD
of/IN
a/DT
$/$
300-a-share/JJ
,/,
$/$
6.79/CD
billion/CD
labor-management/NN
buy-out/NN
./.
Their/PRP$
hope/NN
was/VBD
that/IN
the/DT
catalyst/NN
would/MD
seek/VB
to/TO
oust/VB
the/DT
board/NN
in/IN
a/DT
solicitation/NN
of/IN
shareholder/NN
consents/NNS
./.
Baker/NNP
,/,
Nye/NNP
Investments/NNPS
,/,
a/DT
New/NNP
York/NNP
takeover-stock/JJ
trader/NN
that/WDT
owns/VBZ
UAL/NNP
stock/NN
,/,
would/MD
n't/RB
comment/VB
on/IN
reports/NNS
the/DT
firm/NN
is/VBZ
considering/VBG
seeking/VBG
such/PDT
a/DT
shareholder/NN
vote/NN
./.
But/CC
partner/NN
Richard/NNP
Nye/NNP
said/VBD
,/,
``/``
This/DT
is/VBZ
the/DT
most/RBS
extraordinary/JJ
failed/VBN
transaction/NN
I/PRP
've/VBP
seen/VBN
in/IN
25/CD
years/NNS
in/IN
this/DT
business/NN
./.
It/PRP
would/MD
make/VB
sense/NN
for/IN
somebody/NN
to/TO
do/VB
it/PRP
./.
I/PRP
have/VBP
never/RB
seen/VBN
a/DT
case/NN
of/IN
incompetence/NN
shared/VBN
by/IN
so/RB
many/JJ
participants/NNS
./.
''/''
In/IN
1986/CD
,/,
Baker/NNP
,/,
Nye/NNP
waged/VBD
a/DT
proxy/NN
fight/NN
for/IN
control/NN
of/IN
Leaseway/NNP
Transportation/NNP
Inc./NNP
that/WDT
ultimately/RB
led/VBD
to/TO
Leaseway/NNP
's/POS
being/NN
sold/VBN
./.
Some/DT
traders/NNS
pointed/VBD
hopefully/RB
to/TO
earlier/JJR
estimates/NNS
by/IN
UAL/NNP
's/POS
investment/NN
adviser/NN
,/,
First/NNP
Boston/NNP
Corp./NNP
,/,
that/IN
recapitalizations/NNS
could/MD
yield/VB
$/$
245/CD
to/TO
$/$
280/CD
a/DT
share/NN
./.
But/CC
those/DT
would/MD
require/VB
pilots/NNS
'/POS
cooperation/NN
./.
Any/DT
investor/NN
who/WP
acquires/VBZ
UAL/NNP
stock/NN
in/IN
an/DT
attempt/NN
to/TO
force/VB
a/DT
buy-out/NN
or/CC
recapitalization/NN
must/MD
deal/VB
with/IN
United/NNP
's/POS
contentious/JJ
unions/NNS
./.
The/DT
pilots/NNS
are/VBP
working/VBG
under/IN
an/DT
expired/VBN
contract/NN
,/,
and/CC
the/DT
machinists/NNS
contract/NN
expires/VBZ
next/JJ
month/NN
./.
That/DT
gives/VBZ
them/PRP
enormous/JJ
leverage/NN
,/,
including/VBG
the/DT
threat/NN
of/IN
a/DT
strike/NN
to/TO
block/VB
any/DT
buy-out/NN
or/CC
recapitalization/NN
attempt/NN
they/PRP
oppose/VBP
./.
However/RB
,/,
a/DT
catalyst/NN
like/IN
Coniston/NNP
could/MD
seek/VB
shareholder/NN
support/NN
for/IN
a/DT
sale/NN
to/TO
a/DT
labor-management/NN
group/NN
at/IN
the/DT
last/JJ
price/NN
discussed/VBN
by/IN
that/DT
group/NN
before/IN
the/DT
board/NN
meeting/NN
Monday/NNP
./.
The/DT
pilots/NNS
had/VBD
been/VBN
working/VBG
on/IN
a/DT
buy-out/NN
bid/NN
between/IN
$/$
225/CD
and/CC
$/$
240/CD
a/DT
share/NN
,/,
or/CC
$/$
5.09/CD
billion/CD
to/TO
$/$
5.42/CD
billion/CD
./.
One/CD
person/NN
familiar/JJ
with/IN
UAL/NNP
said/VBD
the/DT
unsettled/VBN
labor/NN
situation/NN
and/CC
the/DT
uncertain/JJ
world-wide/JJ
financial/JJ
markets/NNS
contributed/VBN
to/TO
the/DT
board/NN
's/POS
decision/NN
to/TO
avoid/VB
``/``
rushing/VBG
around/IN
selling/VBG
the/DT
company/NN
at/IN
a/DT
bargain/NN
price/NN
,/,
''/''
particularly/RB
since/IN
it/PRP
accepted/VBD
a/DT
$/$
300-a-share/JJ
offer/NN
just/RB
last/JJ
month/NN
./.
Even/RB
some/DT
takeover-stock/JJ
traders/NNS
said/VBD
they/PRP
could/MD
n't/RB
quarrel/VB
with/IN
the/DT
board/NN
's/POS
logic/NN
./.
But/CC
the/DT
board/NN
's/POS
decision/NN
prompted/VBD
many/JJ
to/TO
bail/VB
out/IN
of/IN
the/DT
stock/NN
yesterday/NN
./.
``/``
We/PRP
had/VBD
a/DT
lot/NN
of/IN
people/NNS
who/WP
threw/VBD
in/IN
the/DT
towel/NN
today/NN
,/,
''/''
said/VBD
Earl/NNP
Ellis/NNP
,/,
a/DT
partner/NN
in/IN
Benjamin/NNP
Jacobson/NNP
&/CC
Sons/NNPS
,/,
a/DT
specialist/NN
in/IN
trading/NN
UAL/NNP
stock/NN
on/IN
the/DT
Big/NNP
Board/NNP
./.
Another/DT
trader/NN
noted/VBD
that/DT
many/JJ
arbitrage/NN
firms/NNS
are/VBP
afraid/JJ
to/TO
sell/VB
their/PRP$
UAL/NNP
stock/NN
at/IN
the/DT
bottom/NN
,/,
but/CC
already/RB
own/JJ
so/RB
much/RB
they/PRP
ca/MD
n't/RB
buy/VB
any/DT
more/JJR
./.
``/``
This/DT
deal/NN
is/VBZ
like/IN
a/DT
Roach/NNP
Motel/NNP
,/,
''/''
he/PRP
said/VBD
./.
``/``
They/PRP
check/VBP
in/IN
,/,
but/CC
they/PRP
ca/MD
n't/RB
check/VB
out/IN
./.
''/''
But/CC
both/PDT
the/DT
traders/NNS
and/CC
the/DT
pilots/NNS
remain/VBP
interested/JJ
in/IN
some/DT
transaction/NN
./.
So/IN
too/RB
,/,
according/VBG
to/TO
many/JJ
reports/NNS
,/,
is/VBZ
British/NNP
Airways/NNPS
PLC/NNP
,/,
despite/IN
its/PRP$
public/JJ
withdrawal/NN
from/IN
the/DT
buy-out/NN
./.
The/DT
pilots/NNS
might/MD
end/VB
up/IN
teaming/VBG
up/IN
with/IN
their/PRP$
longtime/NN
adversaries/NNS
,/,
the/DT
machinists/NNS
union/NN
,/,
in/IN
a/DT
recapitalization/NN
./.
The/DT
machinists/NNS
are/VBP
reviewing/VBG
proposals/NNS
they/PRP
made/VBD
in/IN
the/DT
past/NN
for/IN
recapitalizations/NNS
that/WDT
would/MD
pay/VB
a/DT
special/JJ
shareholder/NN
dividend/NN
and/CC
give/VB
employees/NNS
a/DT
minority/NN
stake/NN
./.
The/DT
company/NN
rejected/VBD
those/DT
past/JJ
proposals/NNS
./.
It/PRP
is/VBZ
unclear/JJ
,/,
however/RB
,/,
if/IN
the/DT
machinists/NNS
would/MD
support/VB
a/DT
majority/NN
stake/NN
,/,
as/IN
the/DT
pilots/NNS
want/VBP
./.
A/DT
machinist/NN
official/NN
said/VBD
that/DT
would/MD
depend/VB
on/IN
how/WRB
much/RB
in/IN
concessions/NNS
machinists/NNS
would/MD
have/VB
to/TO
give/VB
in/IN
return/NN
for/IN
the/DT
majority/NN
stake/NN
./.
Some/DT
investors/NNS
whose/WP$
names/NNS
were/VBD
bandied/VBN
about/IN
by/IN
traders/NNS
as/IN
potential/JJ
UAL/NNP
stock/NN
buyers/NNS
said/VBD
they/PRP
were/VBD
n't/RB
buying/VBG
./.
``/``
I/PRP
'm/VBP
not/RB
interested/VBN
,/,
''/''
said/VBD
Dallas/NNP
investor/NN
Harold/NNP
Simmons/NNP
./.
A/DT
source/NN
close/RB
to/TO
Carl/NNP
Icahn/NNP
,/,
a/DT
corporate/JJ
raider/NN
who/WP
owns/VBZ
Trans/NNP
World/NNP
Airlines/NNPS
Inc./NNP
,/,
said/VBD
he/PRP
has/VBZ
n't/RB
owned/VBN
any/DT
UAL/NNP
stock/NN
and/CC
is/VBZ
n't/RB
buying/VBG
./.
One/CD
person/NN
familiar/JJ
with/IN
Texas/NNP
billionaire/NN
Robert/NNP
Bass/NNP
said/VBD
he/PRP
is/VBZ
n't/RB
likely/JJ
to/TO
make/VB
any/DT
hostile/JJ
moves/NNS
./.
And/CC
a/DT
spokesman/NN
for/IN
Reliance/NNP
Group/NNP
Holdings/NNPS
Inc./NNP
,/,
which/WDT
had/VBD
held/VBN
7/CD
%/NN
of/IN
UAL/NNP
before/IN
the/DT
first/JJ
buy-out/JJ
bid/NN
but/CC
later/RB
reduced/VBD
its/PRP$
holdings/NNS
below/IN
5/CD
%/NN
,/,
would/MD
n't/RB
comment/VB
./.
Marvin/NNP
Davis/NNP
,/,
whose/WP$
$/$
5.4/CD
billion/CD
takeover/NN
bid/NN
originally/RB
put/VBD
the/DT
nation/NN
's/POS
second-largest/JJ
airline/NN
in/IN
play/NN
,/,
is/VBZ
limited/VBN
by/IN
a/DT
standstill/JJ
agreement/NN
with/IN
UAL/NNP
he/PRP
signed/VBD
in/IN
September/NNP
./.
The/DT
Los/NNP
Angeles/NNP
investor/NN
ca/MD
n't/RB
buy/VB
UAL/NNP
stock/NN
,/,
solicit/VB
shareholder/NN
consents/NNS
or/CC
make/VB
a/DT
new/JJ
offer/NN
unless/IN
he/PRP
makes/VBZ
a/DT
formal/JJ
offer/NN
of/IN
$/$
300/CD
a/DT
share/NN
or/CC
UAL/NNP
accepts/VBZ
an/DT
offer/NN
below/IN
$/$
300/CD
./.
However/RB
,/,
Mr./NNP
Davis/NNP
could/MD
pressure/VB
the/DT
board/NN
by/IN
asking/VBG
that/IN
the/DT
agreement/NN
be/VB
waived/VBN
,/,
or/CC
letting/VBG
it/PRP
be/VB
known/VBN
that/IN
he/PRP
has/VBZ
financing/NN
for/IN
an/DT
offer/NN
at/IN
a/DT
lower/JJR
price/NN
./.
Times/NNP
Mirror/NNP
Co./NNP
said/VBD
third-quarter/JJ
net/NN
income/NN
fell/VBD
13/CD
%/NN
to/TO
$/$
70.1/CD
million/CD
,/,
or/CC
54/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
net/JJ
income/NN
of/IN
$/$
81/CD
million/CD
,/,
or/CC
62/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
The/DT
Los/NNP
Angeles/NNP
media/NNS
concern/NN
said/VBD
that/IN
the/DT
year-ago/JJ
period/NN
included/VBD
a/DT
$/$
26.5/CD
million/CD
gain/NN
from/IN
the/DT
sale/NN
of/IN
assets/NNS
,/,
primarily/RB
timberlands/NNS
./.
Revenue/NN
was/VBD
$/$
873.9/CD
million/CD
,/,
up/IN
7.3/CD
%/NN
from/IN
$/$
814.8/CD
million/CD
./.
Stronger/JJR
results/NNS
from/IN
the/DT
company/NN
's/POS
broadcast/NN
and/CC
cable/NN
television/NN
units/NNS
and/CC
professional/JJ
and/CC
textbook/NN
publishing/NN
divisions/NNS
,/,
plus/CC
increased/VBD
advertising/NN
at/IN
the/DT
company/NN
's/POS
largest/JJS
newspaper/NN
,/,
the/DT
Los/NNP
Angeles/NNP
Times/NNP
,/,
offset/VBD
advertising/NN
declines/NNS
in/IN
the/DT
company/NN
's/POS
newspapers/NNS
in/IN
the/DT
Eastern/NNP
U.S./NNP
,/,
the/DT
company/NN
said/VBD
./.
``/``
Looking/VBG
ahead/RB
to/TO
the/DT
fourth/JJ
quarter/NN
,/,
the/DT
outlook/NN
for/IN
the/DT
newspaper/NN
group/NN
remains/VBZ
guarded/VBN
,/,
with/IN
no/DT
improvement/NN
yet/RB
seen/VBN
in/IN
operating/VBG
trends/NNS
in/IN
our/PRP$
Eastern/NNP
markets/NNS
,/,
''/''
said/VBD
Robert/NNP
F./NNP
Erburu/NNP
,/,
Times/NNP
Mirror/NNP
's/POS
chairman/NN
and/CC
chief/NN
executive/NN
./.
Copper/NN
futures/NNS
sold/VBN
off/IN
sharply/RB
yesterday/RB
,/,
influenced/VBN
by/IN
declines/NNS
in/IN
the/DT
stock/NN
market/NN
and/CC
dollar/NN
,/,
and/CC
a/DT
rally/NN
in/IN
bonds/NNS
./.
December/NNP
copper/NN
opened/VBD
near/IN
Monday/NNP
's/POS
close/NN
,/,
tried/VBD
to/TO
rally/VB
but/CC
failed/VBD
,/,
and/CC
then/RB
triggered/VBD
stop-loss/NN
orders/NNS
on/IN
its/PRP$
way/NN
down/IN
to/TO
settle/VB
at/IN
$/$
1.1510/CD
a/DT
pound/NN
,/,
off/IN
4.50/CD
cents/NNS
for/IN
the/DT
day/NN
./.
Stop-loss/NN
orders/NNS
are/VBP
placed/VBN
previously/RB
with/IN
instructions/NNS
to/TO
execute/VB
them/PRP
if/IN
the/DT
market/NN
hits/VBZ
a/DT
predetermined/VBN
price/NN
./.
William/NNP
Kaiser/NNP
,/,
president/NN
of/IN
the/DT
Kaiser/NNP
Financial/NNP
Group/NNP
in/IN
Chicago/NNP
,/,
said/VBD
the/DT
decline/NN
was/VBD
almost/RB
certainly/RB
influenced/VBN
by/IN
the/DT
early/JJ
sell-off/NN
in/IN
the/DT
stock/NN
market/NN
,/,
which/WDT
partly/RB
reflected/VBD
a/DT
weakening/NN
economy/NN
./.
He/PRP
said/VBD
the/DT
recent/JJ
decline/NN
in/IN
copper/NN
stocks/NNS
was/VBD
misleading/VBG
in/IN
the/DT
face/NN
of/IN
a/DT
slowdown/NN
in/IN
manufacturing/NN
./.
Mr./NNP
Kaiser/NNP
said/VBD
traders/NNS
could/MD
have/VB
picked/VBN
up/IN
signals/NNS
of/IN
an/DT
imminent/JJ
price/NN
decline/NN
had/VBD
they/PRP
been/VBN
watching/VBG
the/DT
scrap/NN
metal/NN
markets/NNS
,/,
which/WDT
became/VBD
noticeably/RB
weaker/JJR
two/CD
to/TO
three/CD
weeks/NNS
ago/IN
./.
But/CC
though/IN
a/DT
weakening/VBG
economy/NN
implies/VBZ
reduced/VBN
demand/NN
,/,
Mr./NNP
Kaiser/NNP
said/VBD
that/IN
Third/JJ
World/NNP
copper-producing/JJ
countries/NNS
have/VBP
n't/RB
any/DT
choice/NN
but/CC
to/TO
sell/VB
copper/NN
./.
They/PRP
might/MD
even/RB
step/VB
up/IN
sales/NNS
in/IN
a/DT
falling/VBG
market/NN
,/,
he/PRP
said/VBD
,/,
in/IN
an/DT
effort/NN
to/TO
maintain/VB
the/DT
flow/NN
of/IN
foreign/JJ
exchange/NN
into/IN
their/PRP$
treasuries/NNS
./.
Technically/NNP
,/,
Mr./NNP
Kaiser/NNP
noted/VBD
that/IN
a/DT
lot/NN
of/IN
traders/NNS
had/VBD
bought/VBN
into/IN
the/DT
market/NN
when/WRB
the/DT
price/NN
was/VBD
in/IN
the/DT
$/$
1.24/CD
to/TO
$/$
1.26/CD
range/NN
,/,
thinking/VBG
there/EX
was/VBD
support/NN
at/IN
the/DT
$/$
1.20/CD
level/NN
./.
When/WRB
the/DT
market/NN
fell/VBD
below/IN
that/DT
level/NN
on/IN
Monday/NNP
and/CC
then/RB
yesterday/NN
could/MD
n't/RB
climb/VB
above/IN
that/DT
level/NN
,/,
traders/NNS
started/VBD
selling/VBG
out/IN
their/PRP$
positions/NNS
./.
Betty/NNP
Raptopoulos/NNP
,/,
senior/JJ
metals/NNS
analyst/NN
at/IN
Prudential-Bache/NNP
Securities/NNPS
in/IN
New/NNP
York/NNP
,/,
agreed/VBD
that/IN
most/JJS
of/IN
the/DT
selling/NN
was/VBD
of/IN
a/DT
technical/JJ
nature/NN
./.
She/PRP
said/VBD
the/DT
market/NN
hit/VBD
the/DT
$/$
1.18/CD
level/NN
at/IN
around/IN
10/CD
a.m./NN
EDT/NNP
where/WRB
it/PRP
encountered/VBD
a/DT
large/JJ
number/NN
of/IN
stop-loss/NN
orders/NNS
./.
More/JJR
stop-loss/NN
orders/NNS
were/VBD
touched/VBN
off/IN
all/PDT
the/DT
way/NN
down/IN
to/TO
below/IN
$/$
1.14/CD
,/,
where/WRB
modest/JJ
buying/NN
was/VBD
attracted/VBN
./.
Ms./NNP
Raptopoulos/NNP
said/VBD
the/DT
settling/NN
of/IN
strikes/NNS
in/IN
Canada/NNP
and/CC
Mexico/NNP
will/MD
have/VB
little/JJ
effect/NN
on/IN
supplies/NNS
of/IN
copper/NN
until/IN
early/JJ
next/JJ
year/NN
./.
She/PRP
thinks/VBZ
the/DT
next/JJ
area/NN
of/IN
support/NN
for/IN
copper/NN
is/VBZ
in/IN
the/DT
$/$
1.09/CD
to/TO
$/$
1.10/CD
range/NN
./.
``/``
I/PRP
believe/VBP
that/IN

as/RB
soon/RB
as/IN
the/DT
selling/NN
abates/VBZ
somewhat/RB
we/PRP
could/MD
see/VB
a/DT
rally/NN
back/RB
to/TO
the/DT
$/$
1.20/CD
region/NN
,/,
''/''
she/PRP
added/VBD
./.
She/PRP
thinks/VBZ
a/DT
recovery/NN
in/IN
the/DT
stock/NN
market/NN
would/MD
help/VB
copper/NN
rebound/VB
as/RB
well/RB
./.
She/PRP
noted/VBD
that/IN
the/DT
preliminary/JJ
estimate/NN
of/IN
the/DT
third-quarter/JJ
gross/JJ
national/JJ
product/NN
is/VBZ
due/JJ
out/IN
tomorrow/NN
and/CC
is/VBZ
expected/VBN
to/TO
be/VB
up/IN
about/IN
2.5/CD
%/NN
to/TO
3/CD
%/NN
./.
``/``
If/IN
the/DT
number/NN
is/VBZ
a/DT
little/RB
better/JJR
,/,
then/RB
copper/NN
will/MD
respond/VB
positively/RB
,/,
if/IN
it/PRP
is/VBZ
worse/JJR
then/RB
more/JJR
selling/NN
could/MD
ensue/VB
,/,
''/''
she/PRP
predicted/VBD
./.
Ms./NNP
Raptopoulos/NNP
noted/VBD
that/IN
relating/VBG
economic/JJ
numbers/NNS
to/TO
specific/JJ
market/NN
activity/NN
is/VBZ
tricky/JJ
./.
Yesterday/NN
,/,
for/IN
example/NN
,/,
``/``
the/DT
durable/JJ
goods/NNS
numbers/NNS
came/VBD
out/IN
for/IN
September/NNP
and/CC
the/DT
number/NN
was/VBD
down/IN
only/RB
0.1/CD
%/NN
,/,
''/''
she/PRP
said/VBD
./.
``/``
However/RB
,/,
if/IN
you/PRP
exclude/VBP
defense-related/JJ
orders/NNS
then/RB
durable/JJ
goods/NNS
were/VBD
down/IN
3.9/CD
%/NN
./.
I/PRP
believe/VBP
that/DT
number/NN
reflects/VBZ
a/DT
slowing/VBG
economy/NN
./.
''/''
She/PRP
said/VBD
copper/NN
traders/NNS
will/MD
also/RB
be/VB
looking/VBG
toward/IN
the/DT
release/NN
of/IN
the/DT
index/NN
of/IN
leading/VBG
economic/JJ
indicators/NNS
next/IN
Tuesday/NNP
./.
However/RB
,/,
David/NNP
Threlkeld/NNP
,/,
president/NN
of/IN
Threlkeld/NNP
&/CC
Co./NNP
,/,
an/DT
international/JJ
metals/NNS
company/NN
,/,
noted/VBD
that/IN
so/RB
far/RB
this/DT
year/NN
copper/NN
consumption/NN
is/VBZ
way/RB
ahead/RB
of/IN
the/DT
same/JJ
period/NN
of/IN
1988/CD
,/,
and/CC
that/IN
projected/VBN
production/NN
is/VBZ
below/IN
last/JJ
year/NN
./.
Mr./NNP
Threlkeld/NNP
said/VBD
the/DT
copper/NN
market/NN
seems/VBZ
to/TO
be/VB
anticipating/VBG
a/DT
recession/NN
in/IN
three/CD
months/NNS
,/,
with/IN
declining/VBG
use/NN
being/VBG
the/DT
result/NN
./.
``/``
But/CC
,/,
''/''
he/PRP
added/VBD
,/,
``/``
we/PRP
have/VBP
had/VBN
that/DT
exact/JJ
same/JJ
perception/NN
six/CD
times/NNS
in/IN
the/DT
last/JJ
six/CD
years/NNS
./.
''/''
He/PRP
noted/VBD
that/IN
currently/RB
the/DT
ratio/NN
of/IN
available/JJ
copper/NN
to/TO
consumption/NN
is/VBZ
about/IN
3.5/CD
weeks/NNS
./.
He/PRP
said/VBD
the/DT
normal/JJ
ratio/NN
is/VBZ
five/CD
to/TO
six/CD
weeks/NNS
./.
According/VBG
to/TO
Mr./NNP
Threlkeld/NNP
,/,
the/DT
bottleneck/NN
in/IN
copper/NN
production/NN
is/VBZ
n't/RB
at/IN
the/DT
mines/NNS
but/CC
at/IN
the/DT
copper/NN
refineries/NNS
./.
``/``
It/PRP
takes/VBZ
three/CD
months/NNS
to/TO
turn/VB
copper/NN
concentrate/NN
into/IN
cathodes/NNS
,/,
''/''
he/PRP
said/VBD
./.
If/IN
there/EX
is/VBZ
n't/RB
a/DT
recession/NN
,/,
he/PRP
said/VBD
,/,
``/``
we/PRP
will/MD
be/VB
out/IN
of/IN
copper/NN
by/IN
the/DT
end/NN
of/IN
March/NNP
./.
If/IN
there/EX
is/VBZ
a/DT
recession/NN
that/WDT
will/MD
change/VB
the/DT
statistical/JJ
situation/NN
./.
''/''
He/PRP
thinks/VBZ
that/IN
without/IN
a/DT
recession/NN
copper/NN
prices/NNS
could/MD
exceed/VB
a/DT
high/JJ
of/IN
$/$
1.65/CD
a/DT
pound/NN
,/,
which/WDT
was/VBD
reached/VBN
last/JJ
year/NN
./.
In/IN
the/DT
past/NN
Mr./NNP
Threlkeld/NNP
has/VBZ
been/VBN
known/VBN
to/TO
have/VB
substantial/JJ
long/JJ
positions/NNS
that/NN
is/VBZ
,/,
he/PRP
had/VBD
bought/VBN
copper/NN
futures/NNS
in/IN
anticipation/NN
of/IN
rising/VBG
prices/NNS
--/:
in/IN
the/DT
copper/NN
futures/NNS
market/NN
./.
In/IN
other/JJ
commodity/NN
markets/NNS
yesterday/NN
:/:
ENERGY/NN
:/:
The/DT
attitude/NN
was/VBD
``/``
wait-and-see/JJ
''/''
in/IN
crude/JJ
oil/NN
futures/NNS
yesterday/NN
in/IN
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Mercantile/NNP
Exchange/NNP
./.
Prices/NNS
for/IN
the/DT
U.S./NNP
benchmark/NN
West/NNP
Texas/NNP
Intermediate/NNP
crude/JJ
remained/VBD
locked/VBN
in/IN
a/DT
fairly/RB
narrow/JJ
range/NN
before/IN
ending/VBG
the/DT
session/NN
four/CD
cents/NNS
lower/JJR
at/IN
$/$
19.72/CD
a/DT
barrel/NN
for/IN
December/NNP
delivery/NN
./.
Several/JJ
analysts/NNS
and/CC
brokers/NNS
said/VBD
the/DT
petroleum/NN
market/NN
was/VBD
ready/JJ
to/TO
rally/VB
after/IN
two/CD
days/NNS
of/IN
price/NN
declines/NNS
from/IN
profit-taking/NN
./.
But/CC
an/DT
early/JJ
80-point/JJ
drop/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
stopped/VBD
the/DT
crude/JJ
rally/NN
cold/NN
./.
The/DT
industrial/JJ
average/NN
recovered/VBD
to/TO
close/VB
only/RB
3.69/CD
points/NNS
lower/JJR
,/,
but/CC
petroleum/NN
futures/NNS
never/RB
shook/VBD
off/IN
the/DT
chill/NN
./.
Most/JJS
market/NN
participants/NNS
said/VBD
they/PRP
were/VBD
looking/VBG
to/TO
this/DT
week/NN
's/POS
inventory/NN
statistics/NNS
from/IN
the/DT
American/NNP
Petroleum/NNP
Institute/NNP
to/TO
give/VB
the/DT
market/NN
some/DT
direction/NN
./.
The/DT
report/NN
is/VBZ
n't/RB
generally/RB
available/JJ
until/IN
late/JJ
on/IN
Tuesdays/NNPS
./.
PRECIOUS/JJ
METALS/NNS
:/:
Futures/NNS
prices/NNS
inched/VBD
upward/RB
in/IN
mostly/RB
lackluster/JJ
trading/NN
./.
December/NNP
gold/NN
was/VBD
up/IN
$/$
3.20/CD
an/DT
ounce/NN
at/IN
$/$
373.40/CD
;/:
December/NNP
silver/NN
gained/VBD
5.7/CD
cents/NNS
to/TO
$/$
5.1950/CD
an/DT
ounce/NN
./.
January/NNP
platinum/NN
rose/VBD
$/$
2.30/CD
an/DT
ounce/NN
to/TO
$/$
488.60/CD
./.
Mr./NNP
Kaiser/NNP
said/VBD
there/EX
were/VBD
no/DT
fundamental/JJ
factors/NNS
moving/VBG
these/DT
markets/NNS
./.
He/PRP
noted/VBD
that/IN
two/CD
weeks/NNS
ago/IN
there/EX
were/VBD
rumors/NNS
of/IN
Soviet/JJ
sales/NNS
of/IN
precious/JJ
metals/NNS
to/TO
finance/VB
grain/NN
purchases/NNS
,/,
but/CC
the/DT
sales/NNS
do/VBP
n't/RB
seem/VB
to/TO
have/VB
materialized/VBN
./.
Ms./NNP
Raptopoulos/NNP
thought/VBD
yesterday/NN
's/POS
price/NN
action/NN
reflected/VBD
weakness/NN
in/IN
the/DT
stock/NN
market/NN
and/CC
the/DT
dollar/NN
./.
``/``
Gold/NN
still/RB
acts/VBZ
as/IN
a/DT
haven/NN
when/WRB
uncertainty/NN
prevails/VBZ
in/IN
the/DT
financial/JJ
markets/NNS
as/IN
it/PRP
did/VBD
''/''
yesterday/NN
,/,
she/PRP
said/VBD
./.
Mr./NNP
Kaiser/NNP
noted/VBD
that/DT
gold/NN
was/VBD
more/JJR
than/IN
71/CD
times/NNS
the/DT
price/NN
of/IN
silver/NN
at/IN
the/DT
close/JJ
yesterday/NN
,/,
which/WDT
is/VBZ
historically/RB
high/JJ
./.
``/``
The/DT
high/JJ
ratio/NN
reflects/VBZ
the/DT
fact/NN
that/DT
silver/NN
is/VBZ
still/RB
regarded/VBN
as/IN
about/IN
a/DT
half-industrial/JJ
metal/NN
and/CC
its/PRP$
price/NN
lagging/NN
relative/JJ
to/TO
gold/NN
says/VBZ
that/IN
traders/NNS
are/VBP
expecting/VBG
a/DT
weakening/NN
economy/NN
,/,
''/''
he/PRP
said/VBD
./.
GRAINS/NNS
AND/CC
SOYBEANS/NNS
:/:
Prices/NNS
closed/VBD
lower/JJR
after/IN
trading/VBG
in/IN
relatively/RB
narrow/JJ
ranges/NNS
because/IN
of/IN
strong/JJ
selling/NN
in/IN
the/DT
cash/NN
market/NN
and/CC
continued/VBN
favorable/JJ
harvest/NN
weather/NN
./.
The/DT
sale/NN
to/TO
the/DT
Chinese/JJ
government/NN
of/IN
330,000/CD
metric/JJ
tons/NNS
of/IN
wheat/NN
under/IN
the/DT
government/NN
's/POS
export/NN
enhancement/NN
program/NN
was/VBD
announced/VBN
after/IN
the/DT
close/NN
of/IN
trading/NN
Monday/NNP
,/,
but/CC
the/DT
sale/NN
was/VBD
expected/VBN
and/CC
failed/VBN
to/TO
buoy/VB
prices/NNS
yesterday/NN
,/,
said/VBD
Dale/NNP
Gustafson/NNP
,/,
a/DT
futures/NNS
analyst/NN
with/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
in/IN
Chicago/NNP
./.
As/IN
for/IN
other/JJ
export/NN
customers/NNS
,/,
the/DT
Soviet/NNP
Union/NNP
is/VBZ
n't/RB
expected/VBN
to/TO
be/VB
back/RB
buying/VBG
U.S./NNP
corn/NN
in/IN
significant/JJ
amounts/NNS
until/IN
early/JJ
next/JJ
year/NN
,/,
he/PRP
said/VBD
./.
A/DT
number/NN
of/IN
commercial/JJ
grain/NN
users/NNS
buttressed/VBN
that/DT
opinion/NN
yesterday/NN
by/IN
buying/VBG
certain/JJ
corn/NN
options/NNS
for/IN
delivery/NN
in/IN
March/NNP
,/,
indicating/VBG
to/TO
analysts/NNS
that/IN
the/DT
commercial/JJ
companies/NNS
would/MD
use/VB
the/DT
options/NNS
to/TO
hedge/VB
against/IN
expected/VBN
corn/NN
sales/NNS
in/IN
next/JJ
year/NN
's/POS
first/JJ
quarter/NN
./.
COCOA/NN
:/:
Futures/NNS
at/IN
first/JJ
continued/VBD
the/DT
rally/NN
begun/VBN
on/IN
Monday/NNP
,/,
but/CC
then/RB
faltered/VBD
and/CC
closed/VBD
lower/JJR
./.
The/DT
December/NNP
contract/NN
opened/VBD
just/RB
under/IN
Monday/NNP
's/POS
close/NN
,/,
triggered/VBD
some/DT
previously/RB
placed/VBN
buy/NN
orders/NNS
just/RB
above/IN
$/$
1,030/CD
a/DT
metric/NN
ton/NN
,/,
pushing/VBG
the/DT
price/NN
to/TO
$/$
1,040/CD
,/,
and/CC
then/RB
encountered/VBN
heavy/JJ
selling/NN
by/IN
traders/NNS
who/WP
buy/VBP
and/CC
sell/VBP
for/IN
their/PRP$
own/JJ
accounts/NNS
and/CC
by/IN
commercial/JJ
interests/NNS
./.
The/DT
contract/NN
settled/VBN
at/IN
$/$
1,014/CD
a/DT
ton/NN
,/,
off/IN
$/$
13/CD
./.
Robert/NNP
Hafer/NNP
,/,
senior/JJ
commodities/NNS
analyst/NN
at/IN
Kaiser/NNP
Financial/NNP
Group/NNP
,/,
said/VBD
Monday/NNP
's/POS
rally/NN
continued/VBD
yesterday/NN
for/IN
only/RB
about/IN
20/CD
minutes/NNS
after/IN
the/DT
opening/NN
./.
He/PRP
said/VBD
even/RB
though/IN
there/EX
was/VBD
arbitrage/NN
buying/NN
in/IN
New/NNP
York/NNP
because/IN
of/IN
the/DT
weak/JJ
dollar/NN
,/,
cocoa/NN
fell/VBD
to/TO
relentless/JJ
pressure/NN
from/IN
bearish/JJ
traders/NNS
./.
But/CC
he/PRP
noted/VBD
that/IN
speculators/NNS
apparently/RB
do/VBP
n't/RB
believe/VB
there/EX
is/VBZ
much/RB
more/RBR
of/IN
a/DT
decline/NN
in/IN
store/NN
for/IN
cocoa/NN
./.
The/DT
December/NNP
contract/NN
reached/VBD
its/PRP$
life-of-contract/JJ
low/JJ
of/IN
$/$
975/CD
a/DT
ton/NN
on/IN
Oct./NNP
11/CD
;/:
its/PRP$
lifetime/NN
high/RB
was/VBD
$/$
1,735/CD
,/,
set/VBN
in/IN
1988/CD
,/,
and/CC
its/PRP$
recent/JJ
high/NN
was/VBD
$/$
1,368/CD
,/,
set/VBN
in/IN
early/JJ
August/NNP
./.
The/DT
last/JJ
time/NN
cocoa/NN
traded/VBD
at/IN
prices/NNS
as/RB
low/RB
as/IN
currently/RB
was/VBD
in/IN
1974/CD
./.
But/CC
while/IN
further/JJ
modest/JJ
declines/NNS
might/MD
be/VB
ahead/RB
,/,
Mr./NNP
Hafer/NNP
said/VBD
it/PRP
would/MD
be/VB
difficult/JJ
to/TO
get/VB
through/IN
resistance/NN
levels/NNS
just/RB
above/IN
yesterday/NN
's/POS
high/JJ
./.
Citizens/NNPS
First/NNP
Bancorp/NNP
./.
Inc./NNP
said/VBD
it/PRP
agreed/VBD
to/TO
buy/VB
Lakeland/NNP
First/NNP
Financial/NNP
Group/NNP
Inc./NNP
,/,
a/DT
Succasunna/NNP
,/,
N.J./NNP
,/,
bank/NN
holding/VBG
company/NN
,/,
for/IN
about/IN
$/$
50.6/CD
million/CD
in/IN
cash/NN
and/CC
stock/NN
./.
Citizens/NNPS
First/NNP
,/,
which/WDT
controls/VBZ
Citizens/NNPS
First/NNP
National/NNP
Bank/NNP
and/CC
is/VBZ
based/VBN
in/IN
Glen/NNP
Rock/NNP
,/,
N.J./NNP
,/,
will/MD
pay/VB
a/DT
maximum/NN
of/IN
40/CD
%/NN
in/IN
cash/NN
for/IN
the/DT
parent/NN
of/IN
Lakeland/NNP
Savings/NNP
Bank/NNP
and/CC
the/DT
remainder/NN
in/IN
convertible/JJ
preferred/VBN
stock/NN
,/,
with/IN
a/DT
liquidation/NN
value/NN
of/IN
$/$
18/CD
a/DT
share/NN
./.
Lakeland/NNP
holders/NNS
will/MD
have/VB
the/DT
option/NN
to/TO
request/NN
either/DT
stock/NN
or/CC
cash/NN
./.
The/DT
convertible/NN
preferred/VBN
will/MD
pay/VB
dividends/NNS
at/IN
7.875/CD
%/NN
and/CC
be/VB
convertible/JJ
into/IN
shares/NNS
of/IN
Citizens/NNPS
First/NNP
at/IN
a/DT
rate/NN
equal/JJ
to/TO
20/CD
%/NN
above/IN
the/DT
average/NN
closing/VBG
price/NN
of/IN
the/DT
stock/NN
during/IN
a/DT
20-day/JJ
period/NN
prior/RB
to/TO
the/DT
transaction/NN
's/POS
completion/NN
./.
The/DT
deal/NN
requires/VBZ
regulatory/JJ
and/CC
shareholder/NN
approval/NN
./.
Color/NNP
Systems/NNPS
Technology/NNP
Inc./NNP
,/,
Los/NNP
Angeles/NNP
,/,
said/VBD
its/PRP$
major/JJ
creditor/NN
,/,
General/NNP
Electric/NNP
Pension/NNP
Trust/NNP
,/,
agreed/VBD
to/TO
convert/VB
$/$
11.8/CD
million/CD
of/IN
debt/NN
owed/VBN
into/IN
25/CD
%/NN
of/IN
Color/NNP
System/NNP
's/POS
fully/RB
diluted/VBN
common/JJ
stock/NN
./.
The/DT
agreement/NN
also/RB
calls/VBZ
for/IN
General/NNP
Electric/NNP
Pension/NNP
,/,
a/DT
unit/NN
of/IN
General/NNP
Electric/NNP
Co./NNP
,/,
to/TO
receive/VB
as/RB
much/RB
as/IN
10/CD
%/NN
of/IN
Color/NNP
Systems/NNP
'/POS
fully/RB
diluted/VBN
common/JJ
stock/NN
,/,
depending/VBG
on/IN
the/DT
proceeds/NNS
from/IN
the/DT
sale/NN
of/IN
the/DT
AEI/NNP
Film/NNP
Library/NNP
and/CC
its/PRP$
receivables/NNS
./.
General/NNP
Electric/NNP
Pension/NNP
took/VBD
control/NN
of/IN
the/DT
85-title/JJ
library/NN
last/JJ
month/NN
after/IN
Color/NNP
Systems/NNPS
defaulted/VBD
on/IN
the/DT
loan/NN
./.
The/DT
agreement/NN
depends/VBZ
on/IN
Color/NNP
Systems/NNP
'/POS
ability/NN
to/TO
win/VB
similar/JJ
concessions/NNS
from/IN
other/JJ
creditors/NNS
./.
Buddy/NNP
Young/NNP
,/,
president/NN
,/,
said/VBD
the/DT
company/NN
expects/VBZ
to/TO
conclude/VB
negotiations/NNS
with/IN
other/JJ
creditors/NNS
within/IN
60/CD
days/NNS
./.
Color/NNP
Systems/NNPS
,/,
which/WDT
converts/VBZ
black-and-white/JJ
film/NN
to/TO
color/NN
videotape/NN
,/,
posted/VBD
a/DT
loss/NN
of/IN
$/$
7.1/CD
million/CD
,/,
or/CC
$/$
1.32/CD
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
10.6/CD
million/CD
for/IN
the/DT
fiscal/JJ
year/NN
ended/VBD
June/NNP
30/CD
./.
Its/PRP$
stock/NN
fell/VBD
12.5/CD
cents/NNS
,/,
to/TO
$/$
2.125/CD
,/,
in/IN
American/NNP
Stock/NNP
Exchange/NNP
composite/NN
trading/NN
yesterday/NN
./.
Next/JJ
to/TO
Kohlberg/NNP
Kravis/NNP
Roberts/NNP
's/POS
megabillion/NN
RJR/NNP
Nabisco/NNP
deal/NN
,/,
SCI/NNP
Television/NNP
is/VBZ
small/JJ
fry/NN
./.
But/CC
the/DT
troubles/NNS
of/IN
SCI/NNP
TV/NN
are/VBP
a/DT
classic/JJ
tale/NN
of/IN
the/DT
leveraged/JJ
buy-out/NN
excesses/NNS
of/IN
the/DT
1980s/CD
,/,
especially/RB
the/DT
asset-stripping/JJ
game/NN
./.
SCI/NNP
TV/NN
,/,
which/WDT
expects/VBZ
to/TO
release/VB
a/DT
plan/NN
to/TO
restructure/VB
$/$
1.3/CD
billion/CD
of/IN
debt/NN
in/IN
the/DT
next/JJ
day/NN
or/CC
so/RB
,/,
is/VBZ
n't/RB
just/RB
another/DT
LBO/NNP
that/WDT
went/VBD
bad/JJ
after/IN
piling/VBG
on/IN
debt/NN
--/:
though/IN
it/PRP
did/VBD
do/VB
that/DT
./.
The/DT
cable/NN
and/CC
TV/NN
station/NN
company/NN
was/VBD
an/DT
LBO/NNP
of/IN
an/DT
LBO/NNP
,/,
a/DT
set/NN
of/IN
assets/NNS
that/WDT
were/VBD
leveraged/JJ
twice/RB
,/,
enabling/VBG
the/DT
blue-chip/JJ
buy-out/NN
king/NN
Henry/NNP
Kravis/NNP
in/IN
1987/CD
to/TO
take/VB
more/JJR
than/IN
$/$
1/CD
billion/CD
of/IN
cash/NN
out/IN
of/IN
the/DT
com/NN
pany/NN
./.
SCI/NNP
TV/NNP
's/POS
buy-out/NN
was/VBD
an/DT
ace/NN
in/IN
the/DT
hole/NN
for/IN
Mr./NNP
Kravis/NNP
and/CC
for/IN
investors/NNS
in/IN
KKR/NNP
partnerships/NNS
./.
But/CC
it/PRP
has/VBZ
left/VBN
holders/NNS
of/IN
SCI/NNP
TV/NNP
's/POS
junk/NN
bonds/NNS
holding/VBG
the/DT
bag/NN
,/,
including/VBG
some/DT
heavyweights/NNS
that/IN
KKR/NNP
might/MD
need/VB
to/TO
finance/VB
future/JJ
deals/NNS
,/,
such/JJ
as/IN
Kemper/NNP
Financial/NNP
Services/NNPS
,/,
First/NNP
Executive/NNP
,/,
Columbia/NNP
Savings/NNP
&/CC
Loan/NNP
and/CC
Prudential/NNP
Insurance/NNP
Co./NNP
of/IN
America/NNP
./.
Some/DT
junk-holders/NNS
are/VBP
said/VBN
to/TO
be/VB
considering/VBG
legal/JJ
action/NN
against/IN
KKR/NNP
or/CC
moves/NNS
to/TO
force/VB
SCI/NNP
TV/NNP
into/IN
bankruptcy/NN
court/NN
./.
And/CC
KKR/NNP
's/POS
majority/NN
partner/NN
in/IN
SCI/NNP
TV/NNP
's/POS
buy-out/NN
,/,
Nashville/NNP
,/,
Tenn./NNP
,/,
entrepreneur/NN
George/NNP
Gillett/NNP
,/,
also/RB
is/VBZ
said/VBN
to/TO
be/VB
very/RB
unhappy/JJ
./.
SCI/NNP
TV/NNP
's/POS
six/CD
stations/NNS
once/RB
were/VBD
part/NN
of/IN
Storer/NNP
Communications/NNPS
./.
KKR/NNP
loaded/VBD
up/IN
the/DT
cable/NN
and/CC
television/NN
company/NN
with/IN
debt/NN
in/IN
an/DT
1985/CD
buy-out/NN
,/,
then/RB
later/RB
sold/VBD
Storer/NNP
's/POS
cable/NN
operations/NNS
at/IN
a/DT
fat/JJ
profit/NN
./.
In/IN
1987/CD
,/,
KKR/NNP
for/IN
the/DT
second/JJ
time/NN
piled/VBD
debt/NN
onto/IN
Storer/NNP
's/POS
TV/NNP
stations/NNS
,/,
selling/VBG
them/PRP
for/IN
$/$
1.3/CD
billion/CD
to/TO
a/DT
new/JJ
entity/NN
that/WDT
was/VBD
45%-owned/JJ
by/IN
KKR/NNP
and/CC
55%-owned/JJ
by/IN
Gillett/NNP
Corp./NNP
,/,
which/WDT
now/RB
operates/VBZ
the/DT
SCI/NNP
TV/NNP
stations/NNS
./.
In/IN
this/DT
second/JJ
LBO/NNP
,/,
KKR/NNP
with/IN
one/CD
hand/NN
took/VBD
more/JJR
than/IN
$/$
1/CD
billion/CD
of/IN
cash/NN
out/IN
of/IN
the/DT
TV/NN
company/NN
's/POS
assets/NNS
and/CC
moved/VBD
it/PRP
into/IN
the/DT
Storer/NNP
cable/NN
operations/NNS
,/,
making/VBG
them/PRP
more/RBR
valuable/JJ
in/IN
a/DT
1988/CD
sale/NN
./.
Storer/NNP
also/RB
took/VBD
$/$
125/CD
million/CD
of/IN
junior/JJ
SCI/NNP
TV/NNP
bonds/NNS
as/IN
partial/JJ
payment/NN
for/IN
the/DT
TV/NN
assets/NNS
./.
With/IN
the/DT
other/JJ
hand/NN
,/,
KKR/NNP
put/VBD
back/RB
into/IN
SCI/NNP
TV/NNP
less/JJR
than/IN
10/CD
%/NN
of/IN
the/DT
cash/NN
it/PRP
had/VBD
taken/VBN
out/IN
,/,
buying/VBG
SCI/NNP
TV/NNP
common/JJ
and/CC
preferred/JJ
shares/NNS
./.
So/RB
,/,
while/IN
KKR/NNP
today/NN
has/VBZ
an/DT
estimated/VBN
$/$
250/CD
million/CD
sunk/VBN
in/IN
now-shaky/JJ
SCI/NNP
TV/NNP
,/,
including/VBG
equity/NN
and/CC
debt/NN
,/,
the/DT
LBO/NNP
firm/NN
still/RB
is/VBZ
$/$
1/CD
billion/CD
ahead/RB
on/IN
the/DT
SCI/NNP
TV/NNP
buy-out/NN
after/IN
taking/VBG
cash/NN
up/IN
front/NN
./.
On/IN
Storer/NNP
as/IN
a/DT
whole/NN
,/,
KKR/NNP
racked/VBD
up/IN
compound/JJ
annual/JJ
returns/NNS
of/IN
60/CD
%/NN
in/IN
the/DT
three/CD
years/NNS
it/PRP
owned/VBD
Storer/NNP
./.
Meanwhile/RB
,/,
Mr./NNP
Gillett/NNP
risks/VBZ
losing/VBG
his/PRP$
entire/JJ
equity/NN
investment/NN
of/IN
about/IN
$/$
100/CD
million/CD
in/IN
SCI/NNP
TV/NNP
if/IN
the/DT
company/NN
ca/MD
n't/RB
be/VB
restructured/VBN
./.
Overall/NNP
,/,
Mr./NNP
Gillett/NNP
's/POS
holding/VBG
company/NN
,/,
Gillett/NNP
Holdings/NNP
,/,
is/VBZ
heavily/RB
indebted/JJ
and/CC
,/,
except/IN
for/IN
its/PRP$
Vail/NNP
Mountain/NNP
resorts/NNS
,/,
is/VBZ
n't/RB
doing/VBG
very/RB
well/RB
./.
With/IN
the/DT
TV/NN
business/NN
falling/VBG
on/IN
hard/JJ
times/NNS
in/IN
recent/JJ
years/NNS
,/,
analysts/NNS
say/VBP
that/IN
if/IN
SCI/NNP
TV/NNP
had/VBD
to/TO
be/VB
liquidated/VBN
today/NN
,/,
it/PRP
might/MD
fetch/VB
30/CD
%/NN
less/JJR
than/IN
in/IN
the/DT
1987/CD
buy-out/NN
,/,
wiping/VBG
out/IN
most/JJS
of/IN
the/DT
company/NN
's/POS
junk-holders/NNS
and/CC
its/PRP$
stockholders/NNS
./.
Meanwhile/RB
,/,
SCI/NNP
TV/NNP
can/MD
barely/RB
pay/VB
its/PRP$
cash/NN
interest/NN
bill/NN
,/,
and/CC
to/TO
stay/VB
out/IN
of/IN
bankruptcy/NN
court/NN
it/PRP
must/MD
soon/RB
reschedule/VB
a/DT
lot/NN
of/IN
bank/NN
loans/NNS
and/CC
junk/NN
bonds/NNS
that/WDT
have/VBP
fallen/VBN
due/JJ
./.
SCI/NNP
TV/NNP
's/POS
grace/NN
period/NN
for/IN
paying/VBG
its/PRP$
bills/NNS
is/VBZ
due/JJ
to/TO
expire/VB
Nov./NNP
16/CD
./.
It/PRP
now/RB
is/VBZ
quietly/RB
circulating/VBG
among/IN
creditors/NNS
a/DT
preliminary/JJ
plan/NN
to/TO
restructure/VB
debt/NN
./.
Negotiations/NNS
``/``
have/VBP
started/VBN
con/RB
that/DT
's/VBZ
not/RB
to/TO
say/VB
we/PRP
like/VBP
this/DT
particular/JJ
offer/NN
,/,
''/''
says/VBZ
Wilbur/NNP
Ross/NNP
of/IN
Rothschild/NNP
Inc./NNP
,/,
adviser/NN
to/TO
SCI/NNP
TV/NNP
junk-holders/NNS
./.
No/DT
major/JJ
player/NN
in/IN
the/DT
SCI/NNP
TV/NNP
deal/NN
will/MD
talk/VB
publicly/RB
./.
But/CC
it/PRP
's/VBZ
understood/VBN
that/IN
Mr./NNP
Kravis/NNP
is/VBZ
disappointed/VBN
that/IN
Mr./NNP
Gillett/NNP
did/VBD
n't/RB
manage/VB
to/TO
boost/VB
SCI/NNP
TV/NNP
's/POS
operating/NN
profit/NN
after/IN
the/DT
buy-out/NN
./.
Mr./NNP
Kravis/NNP
apparently/RB
thinks/VBZ
SCI/NNP
TV/NNP
can/MD
survive/VB
if/IN
lenders/NNS
extend/VBP
its/PRP$
debt/NN
payments/NNS
until/IN
TV/NN
stations/NNS
rise/VBP
in/IN
value/NN
again/RB
,/,
allowing/VBG
SCI/NNP
TV/NNP
to/TO
sell/VB
assets/NNS
to/TO
pay/VB
debt/NN
./.
Mr./NNP
Gillett/NNP
is/VBZ
said/VBN
to/TO
be/VB
proud/JJ
of/IN
his/PRP$
operating/NN
record/NN
;/:
he/PRP
has/VBZ
lifted/VBN
some/DT
stations/NNS
'/POS
ratings/NNS
and/CC
turned/VBN
around/IN
a/DT
Detroit/NNP
station/NN
./.
As/IN
for/IN
junk-holders/NNS
,/,
they/PRP
're/VBP
discovering/VBG
it/PRP
can/MD
be/VB
a/DT
mistake/NN
to/TO
take/VB
the/DT
other/JJ
side/NN
of/IN
a/DT
trade/NN
by/IN
KKR/NNP
./.
The/DT
bonds/NNS
of/IN
SCI/NNP
TV/NNP
now/RB
are/VBP
being/VBG
quoted/VBN
at/IN
prices/NNS
ranging/VBG
from/IN
only/RB
five/CD
cents/NNS
to/TO
about/IN
60/CD
cents/NNS
on/IN
the/DT
dollar/NN
,/,
according/VBG
to/TO
R.D./NNP
Smith/NNP
&/CC
Co./NNP
in/IN
New/NNP
York/NNP
,/,
which/WDT
trades/VBZ
distressed/JJ
securities/NNS
./.
People/NNS
who/WP
have/VBP
seen/VBN
SCI/NNP
TV/NNP
's/POS
restructuring/VBG
plan/NN
say/VBP
it/PRP
offers/VBZ
concessions/NNS
by/IN
KKR/NNP
and/CC
Gillett/NNP
Corp/NNP
./.
They/PRP
would/MD
both/DT
give/VBP
part/NN
of/IN
their/PRP$
combined/VBN
$/$
50/CD
million/CD
in/IN
common/JJ
equity/NN
in/IN
SCI/NNP
TV/NNP
to/TO
holders/NNS
of/IN
SCI/NNP
TV/NNP
's/POS
$/$
488/CD
million/CD
of/IN
junk/NN
bonds/NNS
,/,
as/IN
a/DT
carrot/NN
to/TO
persuade/VB
them/PRP
to/TO
accept/VB
new/JJ
bonds/NNS
that/WDT
might/MD
reduce/VB
the/DT
value/NN
of/IN
their/PRP$
claims/NNS
on/IN
the/DT
company/NN
./.
But/CC
some/DT
militant/JJ
SCI/NNP
TV/NNP
junk-holders/NNS
say/VBP
that/DT
's/VBZ
not/RB
enough/RB
./.
They/PRP
contend/VBP
that/IN
SCI/NNP
TV/NNP
's/POS
equity/NN
now/RB
is/VBZ
worthless/JJ
./.
They/PRP
add/VBP
that/IN
it/PRP
is/VBZ
n't/RB
costing/VBG
KKR/NNP
anything/NN
to/TO
give/VB
up/IN
equity/NN
because/IN
of/IN
its/PRP$
big/JJ
up-front/JJ
cash/NN
profit/NN
on/IN
the/DT
buy-out/NN
,/,
which/WDT
they/PRP
think/VBP
contributed/VBN
to/TO
SCI/NNP
TV/NNP
's/POS
current/JJ
problems/NNS
./.
Kemper/NNP
,/,
the/DT
biggest/JJS
holder/NN
of/IN
senior/JJ
SCI/NNP
TV/NNP
bonds/NNS
,/,
has/VBZ
refused/VBN
to/TO
join/VB
the/DT
bond-holders/NNS
committee/NN
and/CC
is/VBZ
said/VBN
to/TO
be/VB
reviewing/VBG
its/PRP$
legal/JJ
options/NNS
./.
To/TO
protect/VB
their/PRP$
claims/NNS
,/,
some/DT
junk-holders/NNS
want/VBP
KKR/NNP
and/CC
perhaps/RB
Mr./NNP
Gillett/NNP
to/TO
invest/VB
new/JJ
money/NN
in/IN
SCI/NNP
TV/NNP
,/,
perhaps/RB
$/$
50/CD
million/CD
or/CC
more/JJR
./.
One/CD
investment/NN
banker/NN
who/WP
is/VBZ
n't/RB
involved/VBN
in/IN
the/DT
deal/NN
says/VBZ
SCI/NNP
TV/NNP
needs/VBZ
at/IN
least/JJS
$/$
50/CD
million/CD
of/IN
new/JJ
equity/NN
to/TO
survive/VB
./.
Junk-holders/NNS
say/VBP
they/PRP
have/VBP
a/DT
stick/NN
to/TO
beat/VB
KKR/NNP
with/IN
:/:
``/``
The/DT
threat/NN
of/IN
bankruptcy/NN
is/VBZ
a/DT
legitimate/JJ
tool/NN
''/''
to/TO
extract/VB
money/NN
from/IN
KKR/NNP
,/,
says/VBZ
one/CD
big/JJ
SCI/NNP
TV/NNP
holder/NN
./.
This/DT
could/MD
be/VB
the/DT
first/RB
major/JJ
bankruptcy-law/NN
proceeding/NN
for/IN
KKR/NNP
,/,
he/PRP
adds/VBZ
./.
A/DT
big/JJ
bankruptcy-court/JJ
case/NN
might/MD
tarnish/VB
KKR/NNP
's/POS
name/NN
,/,
and/CC
provide/VB
new/JJ
fuel/NN
for/IN
critics/NNS
of/IN
LBOs/NNP
in/IN
Washington/NNP
and/CC
elsewhere/RB
./.
But/CC
others/NNS
say/VBP
junk-holders/NNS
have/VBP
nothing/NN
to/TO
gain/VB
by/IN
putting/VBG
SCI/NNP
TV/NNP
into/IN
bankruptcy-law/NN
proceedings/NNS
./.
While/IN
KKR/NNP
does/VBZ
n't/RB
control/VB
SCI/NNP
TV/NNP
which/WDT
is/VBZ
unusual/JJ
for/IN
a/DT
KKR/NNP
investment/NN
--/:
it/PRP
clearly/RB
has/VBZ
much/JJ
deeper/JJR
pockets/NNS
than/IN
Mr./NNP
Gillett/NNP
./.
Bankruptcy/NN
specialists/NNS
say/VBP
Mr./NNP
Kravis/NNP
set/VBD
a/DT
precedent/NN
for/IN
putting/VBG
new/JJ
money/NN
in/IN
sour/JJ
LBOs/NNS
recently/RB
when/WRB
KKR/NNP
restructured/VBN
foundering/VBG
Seaman/NNP
Furniture/NNP
,/,
doubling/VBG
KKR/NNP
's/POS
equity/NN
stake/NN
./.
But/CC
with/IN
Seaman/NNP
,/,
KKR/NNP
was/VBD
only/RB
trying/VBG
to/TO
salvage/VB
its/PRP$
original/JJ
investment/NN
,/,
says/VBZ
bankruptcy/NN
investor/NN
James/NNP
Rubin/NNP
of/IN
Sass/NNP
Lamle/NNP
Rubin/NNP
in/IN
New/NNP
York/NNP
./.
By/IN
contrast/NN
,/,
KKR/NNP
probably/RB
has/VBZ
already/RB
made/VBN
all/PDT
the/DT
money/NN
it/PRP
can/MD
on/IN
SCI/NNP
TV/NNP
./.
And/CC
people/NNS
who/WP
know/VBP
Mr./NNP
Kravis/NNP
say/VBP
he/PRP
is/VBZ
n't/RB
in/IN
a/DT
hurry/NN
to/TO
pour/VB
more/JJR
money/NN
into/IN
SCI/NNP
TV/NNP
./.
Rubbermaid/NNP
Inc./NNP
,/,
reflecting/VBG
strong/JJ
earnings/NNS
growth/NN
,/,
boosted/VBD
its/PRP$
quarterly/JJ
dividend/NN
18/CD
%/NN
,/,
to/TO
13/CD
cents/NNS
a/DT
share/NN
from/IN
11/CD
cents/NNS
./.
The/DT
maker/NN
of/IN
household/NN
products/NNS
said/VBD
the/DT
new/JJ
dividend/NN
is/VBZ
payable/JJ
Dec./NNP
1/CD
to/TO
shares/NNS
of/IN
record/NN
Nov./NNP
10/CD
./.
Separately/RB
,/,
the/DT
company/NN
's/POS
board/NN
adopted/VBD
a/DT
proposal/NN
to/TO
amend/VB
its/PRP$
1986/CD
shareholder/NN
rights/NNS
plan/NN
,/,
further/JJ
insulating/VBG
the/DT
company/NN
from/IN
takeover/NN
./.
Rubbermaid/NNP
officials/NNS
said/VBD
they/PRP
are/VBP
n't/RB
aware/JJ
of/IN
any/DT
effort/NN
to/TO
take/VB
over/IN
the/DT
company/NN
,/,
but/CC
believed/VBD
the/DT
shareholder/NN
plan/NN
needed/VBN
to/TO
be/VB
strengthened/VBN
./.
``/``
The/DT
board/NN
has/VBZ
stated/VBN
repeatedly/RB
that/IN
Rubbermaid/NNP
should/MD
be/VB
independent/JJ
,/,
''/''
said/VBD
Walter/NNP
W./NNP
Williams/NNP
,/,
Rubbermaid/NNP
president/NN
./.
Some/DT
changes/NNS
to/TO
the/DT
plan/NN
were/VBD
minor/JJ
adjustments/NNS
,/,
but/CC
the/DT
most/RBS
significant/JJ
was/VBD
an/DT
amendment/NN
that/WDT
provides/VBZ
that/IN
if/IN
any/DT
investor/NN
holds/VBZ
25/CD
%/NN
or/CC
more/JJR
of/IN
Rubbermaid/NNP
's/POS
voting/VBG
securities/NNS
,/,
each/DT
right/NN
held/VBN
by/IN
others/NNS
would/MD
entitle/VB
the/DT
holder/NN
to/TO
buy/VB
Rubbermaid/NNP
shares/NNS
with/IN
a/DT
market/NN
value/NN
of/IN
twice/RB
the/DT
right/NN
's/POS
exercise/NN
price/NN
./.
Mr./NNP
Williams/NNP
said/VBD
the/DT
exercise/NN
price/NN
is/VBZ
$/$
125/CD
,/,
meaning/NN
holders/NNS
would/MD
have/VB
the/DT
right/NN
to/TO
buy/VB
$/$
250/CD
of/IN
Rubbermaid/NNP
stock/NN
for/IN
half/DT
price/NN
,/,
diluting/VBG
the/DT
investor/NN
's/POS
25/CD
%/NN
stake/NN
./.
For/IN
the/DT
third/JJ
quarter/NN
,/,
Rubbermaid/NNP
earned/VBD
$/$
32.6/CD
million/CD
,/,
or/CC
44/CD
cents/NNS
a/DT
share/NN
,/,
up/IN
16/CD
%/NN
from/IN
$/$
28.1/CD
million/CD
,/,
or/CC
38/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
rose/VBD
9.7/CD
%/NN
to/TO
$/$
351.5/CD
million/CD
from/IN
$/$
320.4/CD
million/CD
./.
Rubbermaid/NNP
shares/NNS
closed/VBD
yesterday/NN
at/IN
$/$
33.875/CD
,/,
off/IN
12.5/CD
cents/NNS
,/,
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
The/DT
stock/NN
market/NN
went/VBD
on/IN
a/DT
dizzying/JJ
ride/NN
as/IN
UAL/NNP
,/,
parent/NN
of/IN
United/NNP
Airlines/NNPS
,/,
once/RB
again/RB
led/VBD
shares/NNS
into/IN
a/DT
breathtaking/JJ
decline/NN
and/CC
then/RB
an/DT
afternoon/NN
comeback/NN
./.
At/IN
the/DT
end/NN
of/IN
it/PRP
all/DT
,/,
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
closed/VBD
down/IN
3.69/CD
to/TO
2659.22/CD
./.
At/IN
one/CD
point/NN
yesterday/NN
morning/NN
,/,
the/DT
Dow/NNP
was/VBD
down/IN
80.53/CD
points/NNS
./.
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
volume/NN
was/VBD
237,960,000/CD
shares/NNS
./.
Declining/VBG
issues/NNS
swamped/VBD
advancers/NNS
,/,
1,222/CD
to/TO
382/CD
./.
Yesterday/NN
's/POS
sell-off/NN
and/CC
rebound/NN
was/VBD
a/DT
powerful/JJ
reminder/NN
that/IN
11/CD
days/NNS
after/IN
the/DT
190-point/JJ
plunge/NN
on/IN
Friday/NNP
the/DT
13th/JJ
,/,
the/DT
stock/NN
market/NN
still/RB
has/VBZ
a/DT
bad/JJ
case/NN
of/IN
nerves/NNS
./.
Takeover/NN
stock/NN
speculation/NN
and/CC
futures-related/JJ
program/NN
trading/NN
drove/VBD
the/DT
industrial/JJ
average/NN
through/IN
wide/JJ
ranges/NNS
./.
And/CC
there/EX
is/VBZ
more/JJR
volatility/NN
to/TO
come/VB
./.
``/``
October/NNP
13th/JJ
left/VBD
us/PRP
with/IN
a/DT
cut/VBN
and/CC
exposed/VBN
nerve/NN
,/,
''/''
said/VBD
Jack/NNP
Solomon/NNP
,/,
technical/JJ
analyst/NN
for/IN
Bear/NNP
Stearns/NNP
./.
``/``
People/NNS
are/VBP
fearful/JJ
and/CC
sensitive/JJ
./.
Everybody/NN
's/POS
finger/NN
is/VBZ
one/CD
inch/NN
closer/JJR
to/TO
the/DT
button/NN
./.
I/PRP
have/VBP
never/RB
had/VBN
as/IN
many/JJ
calls/NNS
as/IN
I/PRP
had/VBD
this/DT
morning/NN
./.
Volatility/NN
is/VBZ
here/RB
to/TO
stay/VB
./.
''/''
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
plunged/VBD
about/IN
80/CD
points/NNS
in/IN
slightly/RB
more/JJR
than/IN
one/CD
hour/NN
after/IN
the/DT
opening/NN
bell/NN
./.
For/IN
many/JJ
,/,
it/PRP
began/VBD
to/TO
look/VB
like/IN
a/DT
replay/NN
of/IN
Oct./NNP
13/CD
./.
As/IN
stocks/NNS
and/CC
stock-index/JJ
futures/NNS
fell/VBD
,/,
a/DT
trading/NN
limit/NN
was/VBD
hit/VBN
in/IN
the/DT
S&P/NNP
500/CD
stock/NN
futures/NNS
pit/NN
./.
Under/IN
a/DT
post-1987/JJ
crash/NN
reform/NN
,/,
the/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
would/MD
n't/RB
permit/VB
the/DT
December/NNP
S&P/NNP
futures/NNS
to/TO
fall/VB
further/RB
than/IN
12/CD
points/NNS
for/IN
a/DT
half/DT
hour/NN
./.
That/DT
caused/VBD
a/DT
brief/JJ
period/NN
of/IN
panic/NN
selling/VBG
of/IN
stocks/NNS
on/IN
the/DT
Big/NNP
Board/NNP
./.
But/CC
at/IN
a/DT
critical/JJ
moment/NN
,/,
stock-index/JJ
arbitrage/NN
traders/NNS
showed/VBD
their/PRP$
power/NN
and/CC
control/NN
./.
They/PRP
scooped/VBD
up/IN
hundreds/NNS
of/IN
S&P/NNP
futures/NNS
when/WRB
the/DT
market/NN
needed/VBD
it/PRP
most/JJS
./.
At/IN
about/IN
10:40/CD
a.m./NN
EDT/NNP
,/,
several/JJ
big/JJ
buy/NN
orders/NNS
hit/VBD
the/DT
S&P/NNP
pit/NN
simultaneously/RB
,/,
lifting/VBG
the/DT
futures/NNS
up/IN
out/IN
of/IN
the/DT
trading/NN
limit/NN
and/CC
eventually/RB
into/IN
ranges/NNS
that/WDT
caused/VBD
computer-driven/JJ
program/NN
buying/NN
of/IN
stocks/NNS
./.
``/``
It/PRP
is/VBZ
very/RB
clear/JJ
that/IN
those/DT
buy/NN
orders/NNS
came/VBD
from/IN
people/NNS
who/WP
wanted/VBD
their/PRP$
franchise/NN
protected/VBN
,/,
''/''
said/VBD
one/CD
Chicago-based/JJ
futures/NNS
trader/NN
./.
``/``
These/DT
guys/NNS
wanted/VBD
to/TO
do/VB
something/NN
to/TO
show/VB
how/WRB
powerful/JJ
they/PRP
are/VBP
./.
''/''
Traders/NNS
said/VBD
Goldman/NNP
Sachs/NNP
,/,
Shearson/NNP
Lehman/NNP
Hutton/NNP
and/CC
Salomon/NNP
Brothers/NNPS
were/VBD
the/DT
main/JJ
force/NN
behind/IN
the/DT
futures/NNS
buying/NN
at/IN
the/DT
pivotal/JJ
moment/NN
./.
Shearson/NNP
Lehman/NNP
Hutton/NNP
declined/VBD
to/TO
comment/VB
./.
Officials/NNS
at/IN
Goldman/NNP
Sachs/NNP
and/CC
Salomon/NNP
Brothers/NNPS
were/VBD
unavailable/JJ
for/IN
comment/NN
./.
As/IN
in/IN
the/DT
Oct./NNP
13/CD
massacre/NN
,/,
yesterday/NN
morning/NN
's/POS
drop/NN
was/VBD
triggered/VBN
by/IN
bad/JJ
news/NN
for/IN
speculators/NNS
in/IN
UAL/NNP
./.
A/DT
UAL/NNP
statement/NN
after/IN
the/DT
market/NN
closed/VBD
Monday/NNP
indicated/VBD
that/IN
the/DT
airline/NN
's/POS
board/NN
wanted/VBD
to/TO
keep/VB
the/DT
company/NN
independent/JJ
,/,
effectively/RB
crushing/VBG
hopes/NNS
of/IN
an/DT
immediate/JJ
buy-out/NN
./.
Five/CD
minutes/NNS
before/IN
the/DT
Big/NNP
Board/NNP
opened/VBD
,/,
a/DT
preliminary/JJ
price/NN
was/VBD
flashed/VBN
for/IN
UAL/NNP
--/:
somewhere/RB
between/IN
135/CD
and/CC
155/CD
,/,
a/DT
loss/NN
of/IN
as/RB
much/JJ
as/IN
$/$
43/CD
a/DT
share/NN
from/IN
Monday/NNP
's/POS
close/NN
./.
UAL/NNP
finally/RB
opened/VBD
for/IN
trading/VBG
at/IN
10:08/CD
a.m./NN
at/IN
150/CD
,/,
down/IN
$/$
28/CD
./.
Floor/NN
traders/NNS
said/VBD
there/EX
was/VBD
a/DT
huge/JJ
crowd/NN
around/IN
the/DT
Big/NNP
Board/NNP
specialist/NN
's/POS
post/NN
where/WRB
UAL/NNP
trades/NNS
./.
``/``
There/EX
was/VBD
a/DT
seething/JJ
mass/NN
of/IN
people/NNS
,/,
''/''
said/VBD
one/CD
floor/NN
trader/NN
./.
``/``
Then/RB
there/EX
was/VBD
a/DT
big/JJ
liquidation/NN
of/IN
stock/NN
''/''
across/IN
the/DT
board/NN
,/,
he/PRP
added/VBD
./.
Takeover/NN
speculators/NNS
--/:
who/WP
have/VBP
already/RB
taken/VBN
a/DT
record/NN
loss/NN
estimated/VBN
at/IN
more/RBR
than/IN
$/$
700/CD
million/CD
on/IN
UAL/NNP
--/:
started/VBD
selling/VBG
other/JJ
stocks/NNS
as/RB
well/RB
as/IN
S&P/NNP
futures/NNS
in/IN
an/DT
attempt/NN
to/TO
hedge/VB
against/IN
a/DT
further/JJ
UAL/NNP
blood/NN
bath/NN
./.
Shortly/RB
after/IN
the/DT
UAL/NNP
opening/NN
,/,
program/NN
traders/NNS
started/VBD
selling/VBG
stocks/NNS
in/IN
the/DT
Major/NNP
Market/NNP
Index/NNP
and/CC
S&P/NNP
500/CD
index/NN
./.
The/DT
20-stock/JJ
MMI/NNP
mimics/NNS
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
./.
By/IN
10:30/CD
a.m./NN
the/DT
Dow/NNP
was/VBD
down/IN
62.70/CD
./.
All/DT
20-stocks/NNS
in/IN
the/DT
MMI/NNP
except/IN
Exxon/NNP
,/,
General/NNP
Motors/NNPS
and/CC
Sears/NNP
were/VBD
down/IN
$/$
1/CD
to/TO
$/$
2/CD
./.
At/IN
10:33/CD
,/,
when/WRB
the/DT
S&P/NNP
500/CD
December/NNP
futures/NNS
contract/NN
crunched/VBD
to/TO
a/DT
12-point/JJ
loss/NN
under/IN
the/DT
force/NN
of/IN
sell/NN
programs/NNS
,/,
S&P/NNP
futures/NNS
trading/NN
was/VBD
halted/VBN
and/CC
program/NN
trades/NNS
on/IN
the/DT
Big/NNP
Board/NNP
were/VBD
routed/VBN
into/IN
a/DT
special/JJ
computer/NN
that/WDT
scans/VBZ
for/IN
order/NN
imbalances/NNS
./.
Under/IN
the/DT
rules/NNS
adopted/VBN
by/IN
the/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
,/,
the/DT
futures/NNS
contract/NN
can/MD
not/RB
drop/VB
below/IN
the/DT
limit/NN
,/,
but/CC
buyers/NNS
can/MD
purchase/VB
futures/NNS
./.
At/IN
this/DT
point/NN
,/,
the/DT
Dow/NNP
industrials/NNS
were/VBD
down/IN
75.41/CD
points/NNS
and/CC
falling/VBG
./.
The/DT
trading/NN
halt/NN
in/IN
the/DT
S&P/NNP
500/CD
futures/NNS
exacerbated/VBD
selling/NN
and/CC
confusion/NN
,/,
many/JJ
traders/NNS
maintain/VBP
./.
But/CC
as/IN
the/DT
fright/NN
began/VBD
to/TO
spread/VB
through/IN
the/DT
S&P/NNP
pit/NN
,/,
the/DT
big/JJ
brokerage/NN
firms/NNS
came/VBD
in/IN
and/CC
bought/VBD
futures/NNS
aggressively/RB
./.
``/``
It/PRP
was/VBD
whooosh/JJ
!/.
''/''
said/VBD
one/CD
futures/NNS
trader/NN
./.
In/IN
five/CD
minutes/NNS
,/,
the/DT
Dow/NNP
industrials/NNS
climbed/VBD
almost/RB
30/CD
points/NNS
./.
The/DT
big/JJ
futures/NNS
buying/NN
triggered/JJ
stock-index/NNS
buy/NN
programs/NNS
that/WDT
eventually/RB
trimmed/VBD
the/DT
Dow/NNP
's/POS
loss/NN
to/TO
31/CD
points/NNS
by/IN
11/CD
a.m/RB
./.
Traders/NNS
said/VBD
the/DT
futures/NNS
buying/NN
was/VBD
finely/RB
calculated/VBN
by/IN
program/NN
traders/NNS
./.
These/DT
firms/NNS
sold/VBD
stock/NN
into/IN
the/DT
big/JJ
morning/NN
decline/NN
,/,
but/CC
seeing/VBG
the/DT
velocity/NN
of/IN
the/DT
market/NN
's/POS
drop/NN
,/,
held/VBD
back/RB
on/IN
their/PRP$
offsetting/VBG
purchases/NNS
of/IN
futures/NNS
until/IN
the/DT
S&P/NNP
futures/NNS
hit/VBD
the/DT
trading/NN
limit/NN
./.
Then/RB
they/PRP
completed/VBD
the/DT
other/JJ
side/NN
of/IN
the/DT
trade/NN
by/IN
buying/VBG
futures/NNS
,/,
which/WDT
abruptly/RB
halted/VBD
the/DT
stock/NN
market/NN
's/POS
decline/NN
as/IN
traders/NNS
began/VBD
to/TO
buy/VB
stocks/NNS
./.
From/IN
then/RB
on/IN
,/,
the/DT
Dow/NNP
industrials/NNS
held/VBD
at/IN
a/DT
loss/NN
of/IN
40/CD
to/TO
50/CD
points/NNS
./.
Then/RB
,/,
in/IN
late-afternoon/JJ
trading/NN
,/,
hundred-thousand-share/JJ
buy/NN
orders/NNS
for/IN
UAL/NNP
hit/VBD
the/DT
market/NN
,/,
including/VBG
a/DT
200,000-share/JJ
order/NN
through/IN
Bear/NNP
Stearns/NNP
that/WDT
seemed/VBD
to/TO
spark/VB
UAL/NNP
's/POS
late/JJ
price/NN
surge/NN
./.
Almost/RB
simultaneously/RB
,/,
PaineWebber/NNP
began/VBD
a/DT
very/RB
visible/JJ
buy/NN
program/NN
for/IN
dozens/NNS
of/IN
stocks/NNS
./.
The/DT
combined/VBN
buying/NN
rallied/VBD
the/DT
Dow/NNP
into/IN
a/DT
small/JJ
gain/NN
,/,
before/IN
closing/VBG
at/IN
a/DT
slight/JJ
loss/NN
./.
Some/DT
institutional/JJ
traders/NNS
loved/VBD
the/DT
wild/JJ
ride/NN
./.
``/``
This/DT
is/VBZ
fun/NN
,/,
''/''
asserted/VBD
Susan/NNP
Del/NNP
Signore/NNP
,/,
head/NN
equity/NN
trader/NN
at/IN
Travelers/NNPS
Investment/NNP
Management/NNP
Co/NNP
./.
She/PRP
said/VBD
she/PRP
used/VBD
the/DT
market/NN
's/POS
wild/JJ
swings/NNS
to/TO
buy/VB
shares/NNS
cheaply/RB
on/IN
the/DT
sell-off/NN
./.
On/IN
the/DT
comeback/NN
,/,
Ms./NNP
Del/NNP
Signore/NNP
unloaded/JJ
shares/NNS
she/PRP
has/VBZ
been/VBN
aiming/VBG
to/TO
get/VB
rid/VB
of/IN
./.
But/CC
traders/NNS
who/WP
risk/VBP
money/NN
handling/VBG
big/JJ
blocks/NNS
of/IN
stock/NN
were/VBD
shaken/VBN
./.
``/``
This/DT
market/NN
is/VBZ
eating/VBG
away/RB
my/PRP$
youth/NN
,/,
''/''
said/VBD
Chung/NNP
Lew/NNP
,/,
head/NN
equity/NN
trader/NN
at/IN
Kleinwort/NNP
Benson/NNP
North/NNP
America/NNP
Inc/NNP
./.
``/``
Credibility/NN
sounds/VBZ
intangible/JJ
./.
But/CC
I/PRP
think/VBP
we/PRP
are/VBP
losing/VBG
credibility/NN
because/IN
when/WRB
the/DT
market/NN
does/VBZ
this/DT
,/,
it/PRP
does/VBZ
n't/RB
present/VB
itself/PRP
as/IN
a/DT
rational/JJ
investment/NN
./.
But/CC
if/IN
you/PRP
overlook/VBP
all/PDT
this/DT
,/,
it/PRP
is/VBZ
a/DT
beautiful/JJ
market/NN
for/IN
investment/NN
still/RB
./.
''/''
Traders/NNS
attributed/VBD
rallies/NNS
in/IN
a/DT
number/NN
of/IN
stocks/NNS
to/TO
a/DT
Japanese/JJ
buy/NN
program/NN
that/DT
PaineWebber/NNP
carried/VBD
out/IN
as/IN
part/NN
of/IN
a/DT
shift/NN
in/IN
portfolio/NN
strategy/NN
,/,
according/VBG
to/TO
Dow/NNP
Jones/NNP
Professional/NNP
Investor/NNP
Report/NNP
./.
Dow/NNP
Jones/NNP
climbed/VBD
5/CD
3\/4/CD
to/TO
41/CD
on/IN
very/JJ
heavy/JJ
volume/NN
of/IN
786,100/CD
shares/NNS
./.
Analysts/NNS
said/VBD
a/DT
big/JJ
Japanese/JJ
buy/NN
order/NN
was/VBD
behind/IN
the/DT
rise/NN
./.
A/DT
Dow/NNP
Jones/NNP
spokesman/NN
said/VBD
there/EX
were/VBD
no/DT
corporate/JJ
developments/NNS
that/WDT
would/MD
account/VB
for/IN
the/DT
activity/NN
./.
Other/JJ
issues/NNS
said/VBD
to/TO
be/VB
included/VBN
in/IN
the/DT
buy/NN
program/NN
were/VBD
Procter/NNP
&/CC
Gamble/NNP
,/,
which/WDT
rose/VBD
2/CD
7\/8/CD
to/TO
133/CD
1\/2/CD
;/:
Atlantic/NNP
Richfield/NNP
,/,
which/WDT
gained/VBD
2/CD
to/TO
103/CD
3\/4/CD
,/,
and/CC
Rockwell/NNP
International/NNP
,/,
which/WDT
jumped/VBD
2/CD
3\/4/CD
to/TO
27/CD
1\/8/CD
./.
PaineWebber/NNP
declined/VBD
to/TO
comment/VB
./.
UAL/NNP
finished/VBD
at/IN
170/CD
,/,
off/IN
8/CD
3\/8/CD
./.
Other/JJ
airline/NN
stocks/NNS
fell/VBD
in/IN
response/NN
to/TO
the/DT
UAL/NNP
board/NN
's/POS
decision/NN
to/TO
remain/VB
independent/JJ
for/IN
now/RB
,/,
including/VBG
USAir/NNP
Group/NNP
,/,
which/WDT
separately/RB
reported/VBD
a/DT
third-quarter/JJ
loss/NN
of/IN
$/$
1.86/CD
a/DT
share/NN
compared/VBN
with/IN
a/DT
year-ago/JJ
profit/NN
./.
USAir/NNP
fell/VBD
2/CD
1\/2/CD
to/TO
40/CD
./.
AMR/NNP
,/,
the/DT
parent/NN
of/IN
American/NNP
Airlines/NNPS
,/,
fell/VBD
1/CD
3\/4/CD
to/TO
68/CD
7\/8/CD
on/IN
2.3/CD
million/CD
shares/NNS
;/:
Delta/NNP
Air/NNP
Lines/NNPS
lost/VBD
1/CD
1\/2/CD
to/TO
66/CD
,/,
Southwest/NNP
Airlines/NNPS
slid/VBD
3\/4/CD
to/TO
24/CD
1\/4/CD
and/CC
Midway/NNP
Airlines/NNPS
dropped/VBD
1\/4/CD
to/TO
14/CD
7\/8/CD
./.
Texas/NNP
Air/NNP
,/,
which/WDT
owns/VBZ
Continental/NNP
and/CC
Eastern/NNP
airlines/NNS
,/,
lost/VBD
3\/8/CD
to/TO
13/CD
1\/8/CD
on/IN
the/DT
American/NNP
Stock/NNP
Exchange/NNP
./.
Metals/NNP
stocks/NNS
also/RB
were/VBD
especially/RB
weak/JJ
,/,
as/IN
concerns/NNS
about/IN
the/DT
earnings/NNS
outlook/NN
for/IN
cyclical/JJ
companies/NNS
weighed/VBN
on/IN
the/DT
group/NN
./.
Aluminum/NNP
Co./NNP
of/IN
America/NNP
dropped/VBD
1/CD
1\/2/CD
to/TO
70/CD
1\/4/CD
,/,
Phelps/NNP
Dodge/NNP
fell/VBD
4/CD
to/TO
59/CD
7\/8/CD
,/,
Asarco/NNP
lost/VBD
1/CD
3\/8/CD
to/TO
31/CD
3\/4/CD
,/,
Reynolds/NNP
Metals/NNPS
slid/VBD
1/CD
3\/8/CD
to/TO
50/CD
3\/8/CD
,/,
Amax/NNP
dropped/VBD
1/CD
1\/8/CD
to/TO
21/CD
5\/8/CD
and/CC
Cyprus/NNP
Minerals/NNPS
skidded/VBD
2/CD
to/TO
26/CD
3\/4/CD
./.
Alcan/NNP
Aluminium/NNP
was/VBD
an/DT
exception/NN
,/,
as/IN
it/PRP
gained/VBD
1/CD
3\/8/CD
to/TO
23/CD
on/IN
two/CD
million/CD
shares/NNS
./.
Goodyear/NNP
Tire/NNP
&/CC
Rubber/NNP
tumbled/VBD
2/CD
7\/8/CD
to/TO
43/CD
7\/8/CD
./.
Its/PRP$
third-quarter/JJ
earnings/NNS
were/VBD
higher/JJR
than/IN
a/DT
year/NN
ago/IN
,/,
but/CC
fell/VBD
short/RB
of/IN
expectations/NNS
./.
Other/JJ
stocks/NNS
in/IN
the/DT
Dow/NNP
industrials/NNS
that/WDT
failed/VBD
to/TO
benefit/VB
from/IN
the/DT
market/NN
's/POS
rebound/NN
included/VBN
United/NNP
Technologies/NNPS
,/,
which/WDT
dropped/VBD
1/CD
to/TO
53/CD
5\/8/CD
,/,
and/CC
Bethle/NN
hem/NN
Steel/NN
,/,
which/WDT
fell/VBD
1/CD
to/TO
16/CD
7\/8/CD
./.
BankAmerica/NNP
dropped/VBD
1/CD
1\/4/CD
to/TO
29/CD
1\/2/CD
on/IN
2.3/CD
million/CD
shares/NNS
amid/IN
rumors/NNS
that/IN
the/DT
earthquake/NN
last/JJ
week/NN
in/IN
the/DT
San/NNP
Francisco/NNP
area/NN
had/VBD
caused/VBN
structural/JJ
damage/NN
to/TO
its/PRP$
headquarters/NN
building/NN
./.
The/DT
company/NN
denied/VBD
the/DT
rumors/NNS
and/CC
noted/VBD
that/IN
it/PRP
does/VBZ
n't/RB
own/VB
the/DT
building/NN
./.
Stocks/NNS
of/IN
California-based/JJ
thrifts/NNS
also/RB
were/VBD
hard/RB
hit/VBN
./.
Great/NNP
Western/NNP
Financial/NNP
lost/VBD
1/CD
1\/8/CD
to/TO
20/CD
1\/2/CD
on/IN
1.6/CD
million/CD
shares/NNS
,/,
Golden/NNP
West/NNP
Financial/NNP
dropped/VBD
1/CD
1\/4/CD
to/TO
28/CD
1\/2/CD
and/CC
H.F./NNP
Ahmanson/NNP
dipped/VBD
5\/8/CD
to/TO
21/CD
1\/4/CD
./.
HomeFed/NNP
plunged/VBD
3/CD
5\/8/CD
to/TO
38/CD
1\/2/CD
;/:
its/PRP$
third-quarter/JJ
earnings/NNS
were/VBD
down/IN
from/IN
a/DT
year/NN
ago/IN
./.
Golden/NNP
Valley/NNP
Microwave/NNP
Foods/NNPS
skidded/VBD
3/CD
5\/8/CD
to/TO
31/CD
3\/4/CD
after/IN
warning/VBG
that/DT
its/PRP$
fourth-quarter/JJ
results/NNS
could/MD
be/VB
hurt/VBN
by/IN
``/``
some/DT
fairly/RB
large/JJ
international/JJ
marketing/NN
expenses/NNS
./.
''/''
Dividend-related/JJ
trading/NN
swelled/VBD
volume/NN
in/IN
two/CD
issues/NNS
:/:
Security/NNP
Pacific/NNP
,/,
which/WDT
fell/VBD
7\/8/CD
to/TO
44/CD
1\/2/CD
and/CC
led/VBD
the/DT
Big/NNP
Board/NNP
's/POS
most/JJS
actives/NNS
list/NN
on/IN
composite/JJ
volume/NN
of/IN
14.8/CD
million/CD
shares/NNS
,/,
and/CC
Nipsco/NNP
Industries/NNPS
,/,
which/WDT
lost/VBD
3\/8/CD
to/TO
17/CD
3\/8/CD
on/IN
4.4/CD
million/CD
shares/NNS
./.
Both/DT
stocks/NNS
have/VBP
dividend/NN
yields/NNS
of/IN
about/IN
5/CD
%/NN
and/CC
will/MD
go/VB
ex-dividend/NN
Wednesday/NNP
./.
Kellogg/NNP
surged/VBD
4/CD
1\/4/CD
to/TO
75/CD
./.
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
placed/VBD
the/DT
stock/NN
on/IN
its/PRP$
list/NN
of/IN
recommended/VBD
issues/NNS
./.
The/DT
company/NN
noted/VBD
that/IN
its/PRP$
third-quarter/JJ
results/NNS
should/MD
be/VB
released/VBN
later/RB
this/DT
week/NN
or/CC
early/JJ
next/JJ
week/NN
./.
Vista/NNP
Chemical/NNP
rose/VBD
1/CD
3\/8/CD
to/TO
38/CD
5\/8/CD
after/IN
Bear/NNP
Stearns/NNP
added/VBD
the/DT
stock/NN
to/TO
the/DT
firm/NN
's/POS
buy/NN
list/NN
,/,
citing/VBG
recent/JJ
price/NN
weakness/NN
./.
Georgia/NNP
Gulf/NNP
,/,
another/DT
producer/NN
of/IN
commodity/NN
chemicals/NNS
,/,
advanced/VBD
2/CD
to/TO
49/CD
1\/2/CD
;/:
Dallas/NNP
investor/NN
Harold/NNP
Simmons/NNP
,/,
who/WP
holds/VBZ
about/IN
10/CD
%/NN
of/IN
its/PRP$
shares/NNS
,/,
said/VBD
he/PRP
has/VBZ
n't/RB
raised/VBD
his/PRP$
stake/NN
./.
Norfolk/NNP
Southern/NNP
went/VBD
up/IN
1/CD
1\/8/CD
to/TO
37/CD
7\/8/CD
./.
The/DT
company/NN
's/POS
board/NN
approved/VBD
the/DT
repurchase/NN
of/IN
up/IN
to/TO
45/CD
million/CD
common/JJ
shares/NNS
,/,
or/CC
about/IN
26/CD
%/NN
of/IN
its/PRP$
shares/NNS
outstanding/JJ
,/,
through/IN
the/DT
end/NN
of/IN
1992/CD
./.
Airborne/NNP
Freight/NNP
climbed/VBD
1/CD
1\/8/CD
to/TO
38/CD
1\/2/CD
./.
Its/PRP$
third-quarter/JJ
earnings/NNS
more/JJR
than/IN
doubled/VBD
from/IN
a/DT
year/NN
earlier/RBR
and/CC
exceeded/VBD
analysts/NNS
'/POS
expectations/NNS
./.
John/NNP
Harland/NNP
,/,
which/WDT
will/MD
replace/VB
American/NNP
Medical/NNP
International/NNP
on/IN
the/DT
S&P/NN
500/CD
following/VBG
Wednesday/NNP
's/POS
close/NN
,/,
gained/VBD
5\/8/CD
to/TO
24/CD
1\/8/CD
./.
The/DT
Amex/NNP
Market/NNP
Value/NNP
Index/NNP
fell/VBD
3.10/CD
to/TO
376.36/CD
./.
Volume/NN
totaled/VBD
14,560,000/CD
shares/NNS
./.
GANNETT/NNP
Co./NNP
raised/VBD
its/PRP$
quarterly/JJ
dividend/NN
11/CD
%/NN
to/TO
30/CD
cents/NNS
a/DT
share/NN
from/IN
27/CD
cents/NNS
,/,
payable/JJ
Jan./NNP
2/CD
,/,
1990/CD
,/,
to/TO
shares/NNS
of/IN
record/NN
Dec./NNP
8/CD
,/,
1989/CD
./.
The/DT
action/NN
increases/VBZ
the/DT
annual/JJ
dividend/NN
to/TO
$/$
1.20/CD
a/DT
share/NN
from/IN
$/$
1.08/CD
./.
This/DT
is/VBZ
the/DT
22nd/CD
year/NN
in/IN
which/WDT
the/DT
Washington/NNP
media/NNS
company/NN
has/VBZ
increased/VBN
dividends/NNS
./.
Gannett/NNP
's/POS
third-quarter/JJ
earnings/NNS
rose/VBD
11/CD
%/NN
to/TO
52/CD
cents/NNS
a/DT
share/NN
from/IN
47/CD
cents/NNS
in/IN
the/DT
year-ago/JJ
period/NN
./.
Sales/NNS
rose/VBD
2.9/CD
%/NN
to/TO
$/$
827.9/CD
million/CD
from/IN
$/$
804.3/CD
million/CD
./.
Gannett/NNP
has/VBZ
161/CD
million/CD
shares/NNS
outstanding/JJ
./.
Fireman/NNP
's/POS
Fund/NNP
Corp./NNP
said/VBD
third-quarter/JJ
net/NN
income/NN
plunged/VBD
85/CD
%/NN
to/TO
$/$
7.2/CD
million/CD
from/IN
last/JJ
year/NN
's/POS
$/$
49.1/CD
million/CD
,/,
or/CC
99/CD
cents/NNS
a/DT
share/NN
,/,
because/IN
of/IN
ravages/NNS
of/IN
Hurricane/NNP
Hugo/NNP
and/CC
increased/VBN
reserves/NNS
for/IN
legal/JJ
expenses/NNS
./.
Payout/NN
of/IN
preferred/VBN
dividends/NNS
resulted/VBD
in/IN
a/DT
net/JJ
loss/NN
of/IN
five/CD
cents/NNS
a/DT
share/NN
in/IN
the/DT
most/RBS
recent/JJ
quarter/NN
./.
Revenue/NN
edged/VBD
up/IN
3.4/CD
%/NN
to/TO
$/$
904/CD
million/CD
from/IN
$/$
874/CD
million/CD
in/IN
last/JJ
year/NN
's/POS
third/JJ
quarter/NN
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Fireman/NNP
's/POS
closed/VBD
at/IN
$/$
35.50/CD
a/DT
share/NN
,/,
down/IN
50/CD
cents/NNS
./.
Impact/NN
of/IN
the/DT
Oct./NNP
17/CD
San/NNP
Francisco/NNP
earthquake/NN
,/,
which/WDT
will/MD
be/VB
recorded/VBN
in/IN
the/DT
fourth/JJ
quarter/NN
,/,
is/VBZ
n't/RB
expected/VBN
to/TO
exceed/VB
$/$
50/CD
million/CD
after/IN
taxes/NNS
,/,
the/DT
company/NN
added/VBD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
the/DT
insurance/NN
company/NN
said/VBD
net/NN
fell/VBD
46/CD
%/NN
to/TO
$/$
88.8/CD
million/CD
,/,
or/CC
$/$
1.54/CD
a/DT
share/NN
,/,
from/IN
$/$
164/CD
million/CD
,/,
or/CC
$/$
3.16/CD
a/DT
share/NN
,/,
the/DT
previous/JJ
year/NN
./.
Revenue/NN
slid/VBD
7/CD
%/NN
to/TO
$/$
2.6/CD
billion/CD
from/IN
$/$
2.8/CD
billion/CD
a/DT
year/NN
earlier/RBR
./.
Fireman/NNP
's/POS
Fund/NNP
property-liability/NN
subsidiaries/NNS
reported/VBD
a/DT
120.7/CD
%/NN
combined/VBN
underwriting/NN
ratio/NN
for/IN
the/DT
nine/CD
months/NNS
,/,
up/IN
from/IN
108.4/CD
%/NN
for/IN
the/DT
year-ago/JJ
period/NN
./.
Hurricane/NNP
Hugo/NNP
accounted/VBD
for/IN
about/IN
$/$
36/CD
million/CD
in/IN
pretax/JJ
third-quarter/JJ
losses/NNS
,/,
net/NN
of/IN
reinsurance/NN
recoveries/NNS
./.
The/DT
company/NN
said/VBD
there/EX
was/VBD
an/DT
additional/JJ
increase/NN
in/IN
loss/NN
and/CC
loss-expense/JJ
reserves/NNS
of/IN
$/$
71/CD
million/CD
reflecting/VBG
``/``
higher/JJR
than/IN
expected/VBN
''/''
development/NN
in/IN
claims/NNS
legal/JJ
expenses/NNS
from/IN
to/TO
prior/JJ
periods/NNS
./.
For/IN
the/DT
third/JJ
quarter/NN
,/,
net/NN
premiums/NNS
were/VBD
$/$
742/CD
million/CD
,/,
up/IN
9.6/CD
%/NN
from/IN
$/$
677/CD
million/CD
in/IN
last/JJ
year/NN
's/POS
quarter/NN
,/,
because/IN
of/IN
the/DT
expiration/NN
of/IN
the/DT
National/NNP
Indemnity/NNP
quota/NN
share/NN
reinsurance/NN
agreement/NN
./.
Net/JJ
premiums/NNS
written/VBN
through/IN
Sept./NNP
30/CD
fell/VBD
5/CD
%/NN
to/TO
$/$
2.1/CD
billion/CD
from/IN
$/$
2.2/CD
billion/CD
a/DT
year/NN
ago/IN
,/,
because/IN
of/IN
the/DT
writing/NN
of/IN
fewer/JJR
policies/NNS
at/IN
flat/JJ
prices/NNS
,/,
the/DT
company/NN
said/VBD
./.
Third-quarter/JJ
and/CC
nine-month/JJ
results/NNS
do/VBP
n't/RB
include/VB
any/DT
provision/NN
for/IN
premium/NN
returns/NNS
that/WDT
could/MD
be/VB
ordered/VBN
by/IN
the/DT
California/NNP
Department/NNP
of/IN
Insurance/NNP
under/IN
Proposition/NN
103/CD
./.
Fireman/NNP
's/POS
Fund/NNP
said/VBD
it/PRP
has/VBZ
applied/VBN
for/IN
an/DT
exemption/NN
from/IN
these/DT
rate/NN
rollbacks/NNS
,/,
and/CC
plans/VBZ
to/TO
defend/VB
its/PRP$
filing/NN
in/IN
hearings/NNS
before/IN
the/DT
department/NN
./.
CONTROL/NNP
DATA/NNP
Corp./NNP
said/VBD
it/PRP
is/VBZ
offering/VBG
to/TO
purchase/VB
the/DT
$/$
154.2/CD
million/CD
amount/NN
of/IN
its/PRP$
12/CD
3\/4/CD
%/NN
senior/JJ
notes/NNS
due/JJ
June/NNP
15/CD
,/,
1991/CD
,/,
at/IN
par/NN
,/,
plus/CC
accrued/VBN
interest/NN
to/TO
the/DT
Dec./NNP
8/CD
purchase/NN
date/NN
./.
The/DT
Minneapolis/NNP
computer/NN
systems/NNS
and/CC
services/NNS
concern/NN
said/VBD
the/DT
offer/NN
is/VBZ
required/VBN
under/IN
the/DT
senior/JJ
note/NN
indenture/NN
as/IN
a/DT
result/NN
of/IN
Control/NNP
Data/NNP
's/POS
recent/JJ
sale/NN
of/IN
its/PRP$
disk/NN
drive/NN
subsidiary/NN
,/,
Imprimis/NNP
,/,
to/TO
Seagate/NNP
Technology/NNP
Inc/NNP
./.
Child/NN
's/POS
Game/NN
There/EX
was/VBD
very/RB
slow/JJ
play/NN
on/IN
the/DT
market/NN
today/NN
,/,
They/PRP
were/VBD
selling/VBG
and/CC
buying/VBG
by/IN
halves/NNS
;/:
Instead/RB
of/IN
trading/VBG
like/IN
Bears/NNPS
and/CC
Bulls/NNPS
,/,
They/PRP
behaved/VBD
like/IN
cubs/NNS
and/CC
calves/NNS
./.
--/:
George/NNP
O./NNP
Ludcke/NNP
./.
Politrick/NN
I/PRP
've/VBP
learned/VBN
one/CD
thing/NN
from/IN
candidates/NNS
,/,
A/DT
technique/NN
so/RB
deftly/RB
done/VBN
:/:
If/IN
a/DT
question/NN
ca/MD
n't/RB
be/VB
answered/VBN
,/,
Strongly/RB
answer/VB
an/DT
unasked/JJ
one/CD
!/.
--/:
Mimi/NNP
Kay/NNP
./.
Foresight/NN
We/PRP
need/VBP
to/TO
get/VB
a/DT
space/NN
platform/NN
set/VBN
up/IN
soon/RB
--/:
just/RB
in/IN
case/NN
we/PRP
want/VBP
to/TO
step/VB
out/IN
for/IN
a/DT
breath/NN
of/IN
fresh/JJ
air/NN
./.
--/:
Ivern/NNP
Ball/NNP
./.
After/IN
being/VBG
whipsawed/VBN
by/IN
a/DT
volatile/JJ
stock/NN
market/NN
,/,
Treasury/NNP
bonds/NNS
closed/VBD
higher/JJR
./.
But/CC
junk/NN
bonds/NNS
took/VBD
more/JJR
hits/NNS
./.
Early/RB
in/IN
the/DT
day/NN
,/,
bond/NN
dealers/NNS
said/VBD
trading/NN
volume/NN
was/VBD
heavy/JJ
as/IN
large/JJ
institutional/JJ
investors/NNS
scrambled/VBD
to/TO
buy/VB
long-term/JJ
Treasury/NNP
bonds/NNS
on/IN
speculation/NN
that/IN
the/DT
stock/NN
market/NN
's/POS
volatility/NN
would/MD
lead/VB
to/TO
a/DT
``/``
flight-to-quality/NN
''/''
rally/NN
./.
That/DT
happens/VBZ
when/WRB
nervous/JJ
stock/NN
investors/NNS
dump/VBP
equities/NNS
and/CC
buy/VB
Treasurys/NNS
,/,
which/WDT
are/VBP
higher/JJR
in/IN
quality/NN
and/CC
thus/RB
considered/VBN
safe/JJ
./.
``/``
Some/DT
retail/JJ
accounts/NNS
,/,
such/JJ
as/IN
commercial/JJ
banks/NNS
and/CC
pension/NN
funds/NNS
,/,
wanted/VBD
to/TO
get/VB
on/IN
the/DT
bandwagon/NN
before/IN
it/PRP
was/VBD
too/RB
late/JJ
,/,
''/''
said/VBD
Sung/NNP
Won/NNP
Sohn/NNP
,/,
chief/NN
economist/NN
at/IN
Norwest/NNP
Corp./NNP
,/,
Minneapolis/NNP
./.
At/IN
one/CD
point/NN
,/,
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
average/NN
fell/VBD
about/IN
80/CD
points/NNS
on/IN
news/NN
that/IN
UAL/NNP
Corp./NNP
decided/VBD
to/TO
remain/VB
independent/JJ
./.
In/IN
response/NN
,/,
Treasury/NNP
prices/NNS
soared/VBD
1/CD
1\/8/CD
points/NNS
,/,
or/CC
about/IN
$/$
11.25/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
./.
But/CC
the/DT
gains/NNS
in/IN
Treasury/NNP
bonds/NNS
were/VBD
pared/VBN
as/IN
stocks/NNS
staged/VBD
a/DT
partial/JJ
recovery/NN
./.
The/DT
industrial/JJ
average/NN
ended/VBD
at/IN
2659.22/CD
,/,
down/IN
3.69/CD
points/NNS
./.
Economists/NNS
said/VBD
the/DT
bond/NN
market/NN
's/POS
strength/NN
also/RB
is/VBZ
a/DT
sign/NN
that/IN
investors/NNS
expect/VBP
the/DT
Federal/NNP
Reserve/NNP
to/TO
cut/VB
interest/NN
rates/NNS
amid/IN
growing/VBG
evidence/NN
that/IN
the/DT
economy/NN
is/VBZ
slowing/VBG
./.
While/IN
they/PRP
do/VBP
n't/RB
expect/VB
the/DT
Fed/NNP
to/TO
move/VB
right/RB
away/RB
,/,
they/PRP
say/VBP
the/DT
case/NN
for/IN
lower/JJR
rates/NNS
is/VBZ
building/VBG
./.
Yesterday/NN
,/,
for/IN
example/NN
,/,
the/DT
Commerce/NNP
Department/NNP
reported/VBD
that/IN
new/JJ
orders/NNS
for/IN
durable/JJ
goods/NNS
fell/VBD
0.1/CD
%/NN
,/,
while/IN
the/DT
nation/NN
's/POS
auto/NN
makers/NNS
reported/VBD
lackluster/NN
mid-October/JJ
sales/NNS
./.
The/DT
Treasury/NNP
's/POS
30-year/JJ
bond/NN
ended/VBD
over/IN
1\/4/CD
point/NN
higher/JJR
./.
Municipal/JJ
,/,
mortgage-backed/JJ
and/CC
investment-grade/JJ
corporate/JJ
bonds/NNS
rose/VBD
1\/8/CD
to/TO
1\/2/CD
point/NN
./.
But/CC
high-yield/JJ
,/,
high-risk/JJ
bonds/NNS
fell/VBD
1\/4/CD
to/TO
1\/2/CD
point/NN
with/IN
the/DT
stock/NN
market/NN
early/RB
in/IN
the/DT
session/NN
and/CC
never/RB
recovered/VBD
./.
According/VBG
to/TO
a/DT
trader/NN
at/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
,/,
the/DT
hardest/JJS
hit/VBN
junk/NN
bonds/NNS
were/VBD
those/DT
issued/VBN
by/IN
RJR/NNP
Holdings/NNP
Capital/NNP
Corp./NNP
,/,
which/WDT
are/VBP
the/DT
easiest/JJS
to/TO
sell/VB
./.
RJR/NNP
's/POS
14.70/CD
%/NN
bonds/NNS
due/JJ
2007/CD
fell/VBD
2/CD
1\/2/CD
points/NNS
./.
Trading/NN
activity/NN
in/IN
the/DT
junk/NN
market/NN
was/VBD
extremely/RB
light/JJ
as/IN
dealers/NNS
could/MD
n't/RB
find/VB
enough/JJ
buyers/NNS
to/TO
match/VB
sellers/NNS
./.
``/``
While/IN
the/DT
stock/NN
market/NN
was/VBD
falling/VBG
,/,
most/RBS
{/(
junk/NN
bond/NN
holders/NNS
it/PRP
not/RB
knowing/VBG
what/WP
to/TO
do/VB
,/,
''/''
said/VBD
Paul/NNP
Suckow/NNP
,/,
director/NN
of/IN
fixed-income/NN
securities/NNS
at/IN
Oppenheimer/NNP
Management/NNP
Corp/NNP
./.
``/``
It/PRP
was/VBD
like/IN
driving/VBG
down/IN
the/DT
highway/NN
watching/VBG
a/DT
wreck/NN
./.
Everybody/NN
was/VBD
rubber-necking/VBG
./.
''/''
Adding/VBG
to/TO
the/DT
junk/NN
market/NN
's/POS
jitters/NNS
were/VBD
reports/NNS
that/IN
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
Securities/NNPS
Corp./NNP
is/VBZ
having/VBG
trouble/NN
structuring/VBG
a/DT
$/$
1.6/CD
billion/CD
offering/NN
for/IN
TW/NNP
Food/NNP
Services/NNPS
Inc./NNP
and/CC
will/MD
postpone/VB
or/CC
even/RB
cancel/VB
the/DT
issue/NN
./.
TW/NNP
is/VBZ
the/DT
largest/JJS
franchisee/NN
of/IN
Hardee/NNP
's/POS
,/,
a/DT
fast-food/NN
restaurant/NN
,/,
and/CC
operates/VBZ
several/JJ
other/JJ
food/NN
chains/NNS
./.
Donaldson/NNP
Lufkin/NNP
would/MD
n't/RB
comment/VB
./.
Credit/NN
analysts/NNS
said/VBD
investors/NNS
are/VBP
nervous/JJ
about/IN
the/DT
issue/NN
because/IN
they/PRP
say/VBP
the/DT
company/NN
's/POS
ability/NN
to/TO
meet/VB
debt/NN
payments/NNS
is/VBZ
dependent/JJ
on/IN
too/RB
many/JJ
variables/NNS
,/,
including/VBG
the/DT
sale/NN
of/IN
assets/NNS
and/CC
the/DT
need/NN
to/TO
mortgage/VB
property/NN
to/TO
retire/VB
some/DT
existing/VBG
debt/NN
./.
Also/RB
,/,
the/DT
TW/NNP
offering/NN
includes/VBZ
interest-deferred/JJ
and/CC
pay-in-kind/JJ
securities/NNS
,/,
which/WDT
are/VBP
currently/RB
unpopular/JJ
./.
Meanwhile/RB
,/,
investors/NNS
turned/VBD
a/DT
cold/JJ
shoulder/NN
to/TO
the/DT
Treasury/NNP
's/POS
sale/NN
of/IN
$/$
10/CD
billion/CD
of/IN
new/JJ
two-year/JJ
notes/NNS
yesterday/NN
./.
``/``
It/PRP
's/VBZ
not/RB
too/RB
surprising/JJ
that/IN
the/DT
auction/NN
was/VBD
sloppy/JJ
,/,
given/VBN
the/DT
volatility/NN
in/IN
the/DT
bond/NN
market/NN
because/IN
of/IN
stocks/NNS
,/,
''/''
said/VBD
Robert/NNP
T./NNP
McGee/NNP
,/,
a/DT
senior/JJ
vice/NN
president/NN
at/IN
Tokai/NNP
Bank/NNP
Ltd/NNP
./.
``/``
People/NNS
are/VBP
looking/VBG
past/JJ
supply/NN
to/TO
lower/JJR
interest/NN
rates/NNS
,/,
but/CC
they/PRP
're/VBP
also/RB
worried/VBN
about/IN
being/VBG
whipsawed/VBN
by/IN
the/DT
volatility/NN
in/IN
the/DT
stock/NN
market/NN
./.
''/''
The/DT
new/JJ
two-year/JJ
notes/NNS
were/VBD
priced/VBN
with/IN
an/DT
average/JJ
yield/NN
of/IN
7.74/CD
%/NN
./.
That/DT
was/VBD
higher/JJR
than/IN
the/DT
7.71/CD
%/NN
to/TO
7.73/CD
%/NN
average/JJ
yield/NN
that/IN
traders/NNS
had/VBD
expected/VBN
./.
In/IN
when-issued/JJ
trading/NN
,/,
the/DT
notes/NNS
were/VBD
quoted/VBN
at/IN
a/DT
price/NN
to/TO
yield/VB
7.78/CD
%/NN
./.
Sluggish/JJ
demand/NN
was/VBD
also/RB
evidenced/VBN
by/IN
the/DT
weak/JJ
2.41-to-1/CD
bid-to-cover/NN
ratio/NN
,/,
which/WDT
was/VBD
lower/JJR
than/IN
the/DT
average/JJ
2.79-to-1/CD
ratio/NN
at/IN
the/DT
last/JJ
12/CD
similar/JJ
auctions/NNS
./.
The/DT
ratio/NN
,/,
which/WDT
reflects/VBZ
the/DT
number/NN
of/IN
bids/NNS
the/DT
Treasury/NNP
receives/VBZ
for/IN
each/DT
bid/NN
accepted/VBN
,/,
is/VBZ
used/VBN
to/TO
gauge/VB
investor/NN
demand/NN
./.
Dealers/NNS
said/VBD
players/NNS
shied/VBD
away/RB
from/IN
the/DT
note/NN
sale/NN
because/IN
they/PRP
were/VBD
concerned/VBN
that/IN
prices/NNS
at/IN
the/DT
time/NN
of/IN
the/DT
auction/NN
might/MD
erode/VB
if/IN
the/DT
stock/NN
market/NN
staged/VBD
a/DT
recovery/NN
,/,
which/WDT
,/,
in/IN
fact/NN
,/,
did/VBD
happen/VB
./.
Individual/NN
and/CC
Japanese/JJ
participation/NN
in/IN
the/DT
auction/NN
was/VBD
disappointing/JJ
,/,
according/VBG
to/TO
dealers/NNS
./.
``/``
Interest/NN
by/IN
Japanese/JJ
investors/NNS
was/VBD
limited/VBN
,/,
''/''
said/VBD
Michael/NNP
Moran/NNP
,/,
chief/NN
economist/NN
at/IN
Daiwa/NNP
Securities/NNPS
America/NNP
Inc/NNP
./.
``/``
They/PRP
are/VBP
typically/RB
not/RB
active/JJ
in/IN
two-year/JJ
note/NN
auctions/NNS
,/,
but/CC
today/NN
's/POS
participation/NN
could/MD
be/VB
viewed/VBN
as/IN
lighter-than-normal/JJ
./.
''/''
However/RB
,/,
Mr./NNP
Moran/NNP
added/VBD
that/IN
the/DT
Japanese/NNP
generally/RB
have/VBP
a/DT
positive/JJ
view/NN
of/IN
the/DT
U.S./NNP
bond/NN
market/NN
because/IN
of/IN
expectations/NNS
that/IN
the/DT
dollar/NN
will/MD
remain/VB
strong/JJ
and/CC
interest/NN
rates/NNS
will/MD
decline/VB
./.
He/PRP
said/VBD
,/,
``/``
Possibly/RB
,/,
they/PRP
're/VBP
waiting/VBG
to/TO
buy/VB
at/IN
the/DT
quarterly/JJ
government/NN
debt/NN
to/TO
be/VB
held/VBN
next/JJ
month/NN
by/IN
the/DT
Treasury/NNP
./.
A/DT
trader/NN
at/IN
a/DT
Japanese/JJ
firm/NN
estimated/VBD
that/IN
the/DT
Japanese/NNP
purchased/VBD
no/DT
more/RBR
than/IN
10/CD
%/NN
of/IN
the/DT
two-year/JJ
notes/NNS
./.
Treasury/NNP
,/,
Agency/NNP
Securities/NNPS
Today/NN
investors/NNS
will/MD
focus/VB
on/IN
the/DT
long-awaited/JJ
auction/NN
of/IN
$/$
4.5/CD
billion/CD
of/IN
30-year/JJ
bonds/NNS
by/IN
Resolution/NNP
Funding/NNP
Corp/NNP
./.
The/DT
initial/JJ
bond/NN
offering/VBG
by/IN
the/DT
new/JJ
government/NN
agency/NN
,/,
which/WDT
was/VBD
created/VBN
to/TO
help/VB
rescue/VB
the/DT
nation/NN
's/POS
troubled/VBN
thrifts/NNS
,/,
is/VBZ
n't/RB
expected/VBN
to/TO
see/VB
robust/JJ
demand/NN
./.
A/DT
small/JJ
yield/NN
premium/NN
over/IN
comparable/JJ
Treasurys/NNS
and/CC
a/DT
lack/NN
of/IN
liquidity/NN
is/VBZ
hampering/VBG
dealers/NNS
'/POS
efforts/NNS
to/TO
drum/VB
up/IN
interest/NN
in/IN
the/DT
so-called/JJ
bailout/NN
bonds/NNS
./.
In/IN
when-issued/JJ
trading/NN
,/,
the/DT
Refcorp/NNP
bonds/NNS
were/VBD
quoted/VBN
at/IN
a/DT
price/NN
to/TO
yield/VB
8.17/CD
%/NN
./.
Yesterday/NN
,/,
the/DT
benchmark/NN
30-year/JJ
bond/NN
was/VBD
quoted/VBN
late/RB
at/IN
102/CD
18\/32/CD
to/TO
yield/VB
7.89/CD
%/NN
,/,
compared/VBN
with/IN
102/CD
9\/32/CD
to/TO
yield/VB
7.93/CD
%/NN
on/IN
Monday/NNP
./.
The/DT
latest/JJS
10-year/JJ
Treasury/NN
was/VBD
quoted/VBN
at/IN
100/CD
22\/32/CD
to/TO
yield/VB
7.88/CD
%/NN
,/,
compared/VBN
with/IN
100/CD
17\/32/CD
to/TO
yield/VB
7.9/CD
%/NN
./.
Short-term/JJ
rates/NNS
were/VBD
unchanged/JJ
to/TO
slightly/RB
lower/JJR
./.
The/DT
discount/NN
rate/NN
on/IN
three-month/JJ
Treasury/NNP
bills/NNS
was/VBD
quoted/VBN
at/IN
7.52/CD
%/NN
for/IN
a/DT
bond-equivalent/JJ
yield/NN
of/IN
7.75/CD
%/NN
,/,
while/IN
the/DT
rate/NN
on/IN
six-month/JJ
Treasury/NNP
bills/NNS
was/VBD
quoted/VBN
at/IN
7.47/CD
%/NN
for/IN
a/DT
yield/NN
of/IN
7.85/CD
%/NN
./.
Rates/NNS
are/VBP
determined/VBN
by/IN
the/DT
difference/NN
between/IN
the/DT
purchase/NN
price/NN
and/CC
face/NN
value/NN
./.
Thus/RB
,/,
higher/JJR
bidding/NN
narrows/VBZ
the/DT
investor/NN
's/POS
return/NN
while/IN
lower/JJR
bidding/NN
widens/VBZ
it/PRP
./.
Corporate/NNP
Issues/NNPS
Several/JJ
blue-chip/JJ
companies/NNS
tapped/VBD
the/DT
new-issue/JJ
market/NN
yesterday/NN
to/TO
take/VB
advantage/NN
of/IN
falling/VBG
interest/NN
rates/NNS
./.
Three/CD
of/IN
the/DT
largest/JJS
offerings/NNS
,/,
by/IN
Exxon/NNP
Capital/NNP
Corp./NNP
,/,
Xerox/NNP
Corp./NNP
and/CC
Citicorp/NNP
,/,
were/VBD
underwritten/VBN
by/IN
groups/NNS
led/VBN
by/IN
Salomon/NNP
Brothers/NNPS
Inc/NNP
./.
Exxon/NNP
Capital/NNP
,/,
long-rumored/JJ
to/TO
be/VB
a/DT
potential/JJ
debt/NN
issuer/NN
,/,
offered/VBD
$/$
200/CD
million/CD
of/IN
10-year/JJ
notes/NNS
priced/VBN
to/TO
yield/VB
8.31/CD
%/NN
./.
Citicorp/NNP
issued/VBD
$/$
200/CD
million/CD
of/IN
seven-year/JJ
notes/NNS
priced/VBN
to/TO
yield/VB
8.82/CD
%/NN
,/,
and/CC
Xerox/NNP
priced/VBD
$/$
150/CD
million/CD
of/IN
six-year/JJ
notes/NNS
to/TO
yield/VB
8.85/CD
%/NN
./.
Meanwhile/RB
,/,
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
paved/VBD
the/DT
way/NN
for/IN
a/DT
visit/NN
to/TO
the/DT
credit/NN
markets/NNS
by/IN
filing/VBG
a/DT
shelf/NN
registration/NN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
for/IN
$/$
800/CD
million/CD
in/IN
new/JJ
debt/NN
./.
This/DT
is/VBZ
in/IN
addition/NN
to/TO
IBM/NNP
's/POS
existing/VBG
shelf/NN
registration/NN
under/IN
which/WDT
$/$
200/CD
million/CD
in/IN
debt/NN
securities/NNS
are/VBP
available/JJ
for/IN
issuance/NN
./.
In/IN
secondary/JJ
trading/NN
,/,
investment-grade/JJ
corporate/JJ
bonds/NNS
ended/VBD
1\/8/CD
to/TO
1\/4/CD
higher/JJR
./.
Municipals/NNS
Actively/RB
traded/VBN
municipal/JJ
bonds/NNS
ended/VBD
1\/4/CD
to/TO
1\/2/CD
point/NN
higher/JJR
in/IN
brisk/JJ
trading/NN
,/,
despite/IN
a/DT
flood/NN
of/IN
new/JJ
supply/NN
./.
New/NNP
Jersey/NNP
Turnpike/NNP
Authority/NNP
's/POS
7.20/CD
%/NN
issue/NN
of/IN
2018/CD
finished/VBD
1\/4/CD
point/NN
stronger/JJR
at/IN
98/CD
1\/2/CD
bid/NN
,/,
to/TO
yield/VB
7.32/CD
%/NN
./.
Traders/NNS
said/VBD
municipals/NNS
were/VBD
underpinned/VBN
by/IN
influences/NNS
including/VBG
the/DT
climb/NN
in/IN
Treasury/NNP
issue/NN
prices/NNS
./.
Also/RB
,/,
municipal/JJ
bonds/NNS
lured/VBD
buying/VBG
because/IN
the/DT
stock/NN
market/NN
remains/VBZ
wobbly/JJ
,/,
traders/NNS
contended/VBD
./.
Mainly/RB
,/,
though/RB
,/,
it/PRP
was/VBD
a/DT
favorable/JJ
outlook/NN
for/IN
yesterday/NN
's/POS
new/JJ
supply/NN
that/IN
propped/VBD
up/IN
municipals/NNS
,/,
some/DT
traders/NNS
said/VBD
./.
Among/IN
the/DT
new/JJ
issues/NNS
was/VBD
Massachusetts/NNP
's/POS
$/$
230/CD
million/CD
of/IN
general/JJ
obligation/NN
bonds/NNS
./.
The/DT
bonds/NNS
were/VBD
won/VBN
by/IN
a/DT
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
group/NN
with/IN
a/DT
true/JJ
interest/NN
cost/NN
of/IN
7.17/CD
%/NN
./.
They/PRP
were/VBD
priced/VBN
to/TO
yield/VB
from/IN
6.00/CD
%/NN
in/IN
1990/CD
to/TO
7.20/CD
%/NN
in/IN
2009/CD
./.
The/DT
Massachusetts/NNP
deal/NN
had/VBD
an/DT
unsold/JJ
balance/NN
of/IN
$/$
84.3/CD
million/CD
in/IN
late/JJ
trading/NN
,/,
the/DT
underwriter/NN
said/VBD
./.
Mortgage/NN
Asset-Backed/NNP
Securities/NNPS
Mortgage/NNP
securities/NNS
gained/VBD
3\/32/CD
to/TO
9\/32/CD
point/NN
after/IN
a/DT
hectic/JJ
session/NN
,/,
with/IN
Government/NNP
National/NNP
Mortgage/NNP
Association/NNP
8/CD
%/NN
securities/NNS
as/IN
the/DT
standout/NN
issue/NN
./.
The/DT
Ginnie/NNP
Mae/NNP
issue/NN
rose/VBD
amid/IN
talk/NN
of/IN
large/JJ
purchases/NNS
of/IN
the/DT
securities/NNS
by/IN
institutional/JJ
investors/NNS
./.
The/DT
derivative/JJ
markets/NNS
remained/VBD
active/JJ
as/IN
one/CD
new/JJ
issue/NN
was/VBD
priced/VBN
and/CC
talk/NN
circulated/VBN
about/IN
more/JJR
offerings/NNS
in/IN
the/DT
next/JJ
day/NN
or/CC
two/CD
./.
The/DT
Federal/NNP
Home/NNP
Loan/NNP
Mortgage/NNP
Corp./NNP
issued/VBD
a/DT
$/$
500/CD
million/CD
real/JJ
estate/NN
mortgage/NN
investment/NN
conduit/NN
backed/VBN
by/IN
its/PRP$
8/CD
1\/2/CD
%/NN
securities/NNS
./.
In/IN
the/DT
asset-backed/JJ
market/NN
,/,
a/DT
big/JJ
offering/NN
of/IN
Ford/NNP
Motor/NNP
Credit/NNP
Corp/NNP
./.
auto-loan/JJ
securities/NNS
was/VBD
increased/VBN
in/IN
size/NN
after/IN
strong/JJ
institutional/JJ
demand/NN
./.
The/DT
deal/NN
by/IN
the/DT
Ford/NNP
Motor/NNP
Co./NNP
unit/NN
,/,
priced/VBN
Monday/NNP
,/,
was/VBD
increased/VBN
to/TO
$/$
3.05/CD
billion/CD
from/IN
$/$
2.58/CD
billion/CD
./.
Among/IN
major/JJ
pass-through/JJ
issues/NNS
,/,
Ginnie/NNP
Mae/NNP
9/CD
%/NN
securities/NNS
for/IN
November/NNP
delivery/NN
ended/VBD
at/IN
98/CD
15\/32/CD
,/,
up/IN
5\/32/CD
,/,
after/IN
touching/VBG
an/DT
early/RB
high/JJ
of/IN
98/CD
27\/32/CD
;/:
8/CD
%/NN
securities/NNS
were/VBD
at/IN
94/CD
5\/32/CD
,/,
up/IN
9\/32/CD
;/:
9/CD
1\/2/CD
%/NN
securities/NNS
at/IN
100/CD
15\/32/CD
,/,
up/IN
4\/32/CD
;/:
and/CC
10/CD
%/JJ
securities/NNS
at/IN
102/CD
11\/32/CD
,/,
up/IN
3\/32/CD
./.
Freddie/NNP
Mac/NNP
9/CD
%/NN
securities/NNS
were/VBD
at/IN
97/CD
21\/32/CD
,/,
up/IN
5\/32/CD
./.
The/DT
Ginnie/NNP
Mae/NNP
9/CD
%/NN
issue/NN
was/VBD
yielding/VBG
9.34/CD
%/NN
to/TO
a/DT
12-year/JJ
average/NN
life/NN
assumption/NN
,/,
as/IN
the/DT
spread/NN
above/IN
the/DT
Treasury/NN
10-year/JJ
note/NN
held/VBN
at/IN
1.46/CD
percentage/NN
points/NNS
./.
Foreign/NNP
Bonds/NNPS
The/DT
Eurodollar/NNP
bond/NN
market/NN
sprang/VBD
to/TO
life/NN
late/RB
in/IN
the/DT
European/JJ
trading/NN
session/NN
after/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
tumbled/VBD
./.
Eurodollar/JJ
bonds/NNS
are/VBP
often/RB
issued/VBN
by/IN
foreign/JJ
corporations/NNS
,/,
but/CC
interest/NN
and/CC
principal/NN
are/VBP
paid/VBN
in/IN
dollars/NNS
./.
The/DT
bonds/NNS
ended/VBD
about/IN
1\/2/CD
point/NN
higher/JJR
yesterday/NN
./.
Prices/NNS
of/IN
European/JJ
government/NN
bonds/NNS
also/RB
rose/VBD
as/IN
U.S./NNP
stocks/NNS
declined/VBD
./.
West/NNP
Germany/NNP
's/POS
7/CD
%/NN
issue/NN
due/JJ
October/NNP
1999/CD
rose/VBD
0.13/CD
point/NN
to/TO
99.93/CD
to/TO
yield/VB
7.01/CD
%/NN
,/,
while/IN
the/DT
6/CD
3\/4/CD
%/NN
issue/NN
due/JJ
July/NNP
1994/CD
rose/VBD
0.05/CD
to/TO
97.70/CD
to/TO
yield/VB
7.33/CD
%/NN
./.
Britain/NNP
's/POS
11/CD
3\/4/CD
%/NN
Treasury/NN
bond/NN
due/JJ
2003\/2007/CD
rose/VBD
17\/32/CD
to/TO
112/CD
6\/32/CD
to/TO
yield/VB
10.05/CD
%/NN
,/,
while/IN
the/DT
12/CD
%/NN
notes/NNS
due/JJ
1995/CD
rose/VBD
11\/32/CD
to/TO
104/CD
2\/32/CD
to/TO
yield/VB
10.93/CD
%/NN
./.
In/IN
Japan/NNP
,/,
government/NN
bond/NN
prices/NNS
fell/VBD
./.
The/DT
No./NN
111/CD
4.6/CD
%/NN
bond/NN
due/JJ
1998/CD
ended/VBD
on/IN
brokers/NNS
'/POS
screens/NNS
at/IN
95.22/CD
,/,
down/IN
0.17/CD
point/NN
,/,
to/TO
yield/VB
5.41/CD
%/NN
./.
BSB/NNP
BANCORP/NNP
Inc./NNP
,/,
Binghamton/NNP
,/,
N.Y./NNP
,/,
said/VBD
it/PRP
increased/VBD
its/PRP$
regular/JJ
quarterly/JJ
dividend/NN
50/CD
%/NN
,/,
to/TO
15/CD
cents/NNS
a/DT
share/NN
from/IN
10/CD
cents/NNS
./.
It/PRP
is/VBZ
payable/JJ
Dec./NNP
10/CD
to/TO
stock/VB
of/IN
record/NN
Nov./NNP
24/CD
./.
The/DT
move/NN
was/VBD
made/VBN
because/IN
of/IN
the/DT
bank-holding/JJ
company/NN
's/POS
increased/VBN
profitability/NN
,/,
officials/NNS
said/VBD
./.
In/IN
the/DT
third/JJ
quarter/NN
,/,
BSB/NNP
earned/VBD
$/$
2/CD
million/CD
,/,
up/IN
from/IN
$/$
1.8/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
In/IN
national/JJ
over-the-counter/NN
trading/NN
yesterday/NN
,/,
BSB/NNP
closed/VBD
at/IN
$/$
17.50/CD
,/,
up/IN
12.5/CD
cents/NNS
./.
BSB/NNP
has/VBZ
3.1/CD
million/CD
shares/NNS
outstanding/JJ
./.
Staar/NNP
Surgical/NNP
Co./NNP
's/POS
board/NN
said/VBD
that/IN
it/PRP
has/VBZ
removed/VBN
Thomas/NNP
R./NNP
Waggoner/NNP
as/IN
president/NN
and/CC
chief/NN
executive/JJ
officer/NN
and/CC
that/IN
John/NNP
R./NNP
Wolf/NNP
,/,
formerly/RB
executive/JJ
vice/NN
president/NN
,/,
sales/NNS
and/CC
marketing/NN
,/,
has/VBZ
been/VBN
named/VBN
president/NN
and/CC
chief/NN
executive/NN
officer/NN
./.
Mr./NNP
Waggoner/NNP
has/VBZ
been/VBN
involved/VBN
in/IN
a/DT
dispute/NN
with/IN
the/DT
board/NN
since/IN
August/NNP
,/,
when/WRB
he/PRP
ousted/VBD
all/PDT
the/DT
directors/NNS
./.
Later/RB
they/PRP
said/VBD
they/PRP
fired/VBD
him/PRP
,/,
and/CC
two/CD
directors/NNS
attempted/VBD
to/TO
place/VB
the/DT
company/NN
under/IN
bankruptcy-law/NN
protection/NN
./.
A/DT
federal/JJ
judge/NN
turned/VBD
down/IN
the/DT
Chapter/NN
11/CD
petition/NN
./.
The/DT
company/NN
's/POS
latest/JJS
announcement/NN
said/VBD
Mr./NNP
Waggoner/NNP
will/MD
remain/VB
a/DT
director/NN
of/IN
Staar/NNP
,/,
a/DT
maker/NN
of/IN
products/NNS
for/IN
small-incision/NN
surgery/NN
./.
Mr./NNP
Wolf/NNP
and/CC
other/JJ
members/NNS
of/IN
the/DT
board/NN
declined/VBD
to/TO
comment/VB
on/IN
the/DT
announcement/NN
./.
Mr./NNP
Waggoner/NNP
could/MD
n't/RB
be/VB
reached/VBN
./.
The/DT
Staar/NNP
board/NN
also/RB
said/VBD
that/IN
John/NNP
R./NNP
Ford/NNP
resigned/VBD
as/IN
a/DT
director/NN
,/,
and/CC
that/IN
Mr./NNP
Wolf/NNP
was/VBD
named/VBN
a/DT
member/NN
of/IN
the/DT
board/NN
./.
EAST/NNP
GERMANY'S/NNP
KRENZ/NNP
WARNED/VBD
against/IN
further/JJ
pro-democracy/JJ
protests/NNS
./.
After/IN
the/DT
legislature/NN
confirmed/VBD
him/PRP
as/IN
the/DT
Communist/NNP
Party/NNP
leader/NN
,/,
Krenz/NNP
said/VBD
demonstrations/NNS
to/TO
demand/VB
democratic/JJ
freedoms/NNS
could/MD
cause/VB
a/DT
``/``
worsening/VBG
of/IN
the/DT
situation/NN
,/,
or/CC
confrontation/NN
./.
''/''
He/PRP
also/RB
reaffirmed/VBD
East/NNP
Germany/NNP
's/POS
allegiance/NN
to/TO
Communist/NNP
orthodoxy/NN
./.
But/CC
as/RB
many/JJ
as/IN
12,000/CD
people/NNS
marched/VBD
in/IN
East/NNP
Berlin/NNP
after/IN
the/DT
speech/NN
to/TO
protest/VB
his/PRP$
election/NN
./.
During/IN
the/DT
balloting/NN
,/,
26/CD
members/NNS
of/IN
the/DT
500-seat/JJ
Parliament/NNP
voted/VBD
against/IN
Krenz/NNP
,/,
a/DT
move/NN
considered/VBN
unprecedented/JJ
in/IN
the/DT
country/NN
's/POS
40-year/JJ
history/NN
./.
Officials/NNS
in/IN
East/NNP
Berlin/NNP
,/,
responding/VBG
to/TO
complaints/NNS
from/IN
opposition/NN
groups/NNS
,/,
admitted/VBD
police/NNS
used/VBD
excessive/JJ
force/NN
in/IN
dispersing/VBG
protesters/NNS
this/DT
month/NN
./.
The/DT
Iran-Contra/NNP
judge/NN
agreed/VBD
to/TO
allow/VB
Poindexter/NNP
to/TO
subpoena/VB
the/DT
personal/JJ
papers/NNS
of/IN
ex-President/NNP
Reagan/NNP
,/,
ruling/VBG
that/IN
there/EX
was/VBD
sufficient/JJ
evidence/NN
that/IN
the/DT
data/NNS
would/MD
be/VB
important/JJ
to/TO
the/DT
defense/NN
./.
But/CC
the/DT
judge/NN
denied/VBD
a/DT
request/NN
by/IN
the/DT
former/JJ
national/JJ
security/NN
adviser/NN
,/,
who/WP
faces/VBZ
five/CD
criminal/JJ
charges/NNS
,/,
to/TO
seek/VB
documents/NNS
from/IN
Bush/NNP
./.
San/NNP
Francisco/NNP
Bay/NNP
area/NN
officials/NNS
said/VBD
nine/CD
people/NNS
remain/VBP
missing/VBG
in/IN
the/DT
aftermath/NN
of/IN
last/JJ
week/NN
's/POS
earthquake/NN
./.
The/DT
death/NN
toll/NN
rose/VBD
to/TO
63/CD
./.
The/DT
House/NNP
,/,
meanwhile/RB
,/,
approved/VBD
$/$
2.85/CD
billion/CD
to/TO
aid/VB
in/IN
the/DT
recovery/NN
from/IN
the/DT
temblor/NN
and/CC
from/IN
Hurricane/NNP
Hugo/NNP
as/IN
state/NN
legislators/NNS
moved/VBD
toward/IN
a/DT
temporary/JJ
sales-tax/JJ
increase/NN
./.
U.S./NNP
officials/NNS
expressed/VBD
skepticism/NN
over/IN
an/DT
Israeli/NNP
effort/NN
to/TO
show/VB
the/DT
PLO/NNP
continues/VBZ
to/TO
practice/VB
terrorism/NN
./.
Israel/NNP
provided/VBD
the/DT
State/NNP
Department/NNP
with/IN
a/DT
list/NN
of/IN
recent/JJ
alleged/VBN
terrorist/JJ
incidents/NNS
attributed/VBN
to/TO
forces/NNS
controlled/VBN
by/IN
Arafat/NNP
,/,
but/CC
the/DT
U.S./NNP
said/VBD
it/PRP
was/VBD
n't/RB
satisfied/VBN
that/IN
the/DT
incidents/NNS
constituted/VBD
terrorism/NN
./.
TV/NN
evangelist/NN
Jim/NNP
Bakker/NNP
was/VBD
sentenced/VBN
to/TO
45/CD
years/NNS
in/IN
prison/NN
and/CC
fined/VBN
$/$
500,000/CD
for/IN
defrauding/VBG
followers/NNS
of/IN
his/PRP$
PTL/NNP
ministry/NN
./.
Bakker/NNP
,/,
who/WP
was/VBD
immediately/RB
taken/VBN
into/IN
custody/NN
,/,
was/VBD
convicted/VBN
Oct./NNP
5/CD
by/IN
a/DT
federal/JJ
court/NN
jury/NN
in/IN
Charlotte/NNP
,/,
N.C./NNP
,/,
of/IN
fraud/NN
and/CC
conspiracy/NN
for/IN
diverting/VBG
more/RBR
than/IN
$/$
3.7/CD
million/CD
of/IN
ministry/NN
funds/NNS
for/IN
personal/JJ
use/NN
./.
Lawmakers/NNS
in/IN
Moscow/NNP
voted/VBD
to/TO
deny/VB
the/DT
Communist/NNP
Party/NNP
its/PRP$
100/CD
guaranteed/VBN
seats/NNS
in/IN
the/DT
Soviet/NNP
Congress/NNP
,/,
meaning/NN
Gorbachev/NNP
and/CC
other/JJ
aides/NNS
might/MD
have/VB
to/TO
face/VB
voters/NNS
./.
In/IN
Warsaw/NNP
,/,
Shevardnadze/NNP
held/VBD
his/PRP$
first/JJ
talks/NNS
with/IN
the/DT
Solidarity-led/JJ
government/NN
and/CC
vowed/VBD
to/TO
maintain/VB
fuel/NN
supplies/NNS
./.
Poland/NNP
's/POS
premier/NN
is/VBZ
to/TO
visit/VB
Moscow/NNP
next/JJ
month/NN
./.
The/DT
Arab/NNP
League/NNP
pledged/VBD
an/DT
accord/NN
for/IN
a/DT
complete/JJ
Syrian/JJ
troop/NN
pullout/NN
from/IN
Lebanon/NNP
,/,
where/WRB
about/IN
70,000/CD
people/NNS
marched/VBD
to/TO
the/DT
headquarters/NN
of/IN
Christian/NNP
leader/NN
Aoun/NNP
to/TO
support/VB
his/PRP$
rejection/NN
of/IN
a/DT
peace/NN
plan/NN
approved/VBN
Sunday/NNP
by/IN
Lebanon/NNP
's/POS
legislature/NN
./.
The/DT
plan/NN
lacked/VBD
a/DT
withdrawal/NN
timetable/NN
./.
Pro-Iranian/NNP
kidnappers/NNS
renewed/VBD
an/DT
offer/NN
to/TO
trade/VB
their/PRP$
captives/NNS
in/IN
Lebanon/NNP
for/IN
at/IN
least/JJS
15/CD
Shiite/NNP
Moslem/NNP
comrades/NNS
jailed/VBN
in/IN
Kuwait/NNP
./.
The/DT
statement/NN
by/IN
Islamic/NNP
Jihad/NNP
,/,
which/WDT
holds/VBZ
at/IN
least/JJS
two/CD
U.S./NNP
hostages/NNS
,/,
was/VBD
accompanied/VBN
by/IN
a/DT
photograph/NN
of/IN
Associated/NNP
Press/NNP
correspondent/NN
Terry/NNP
Anderson/NNP
,/,
longest/JJS
held/VBN
of/IN
18/CD
Western/JJ
hostages/NNS
./.
The/DT
Treasury/NNP
Department/NNP
said/VBD
S&Ls/NNP
reject/VBP
blacks/NNS
for/IN
mortgage/NN
loans/NNS
twice/RB
as/RB
often/RB
as/IN
they/PRP
reject/VBP
whites/NNS
./.
The/DT
department/NN
's/POS
Office/NNP
of/IN
Thrift/NNP
Supervision/NNP
said/VBD
that/DT
does/VBZ
n't/RB
necessarily/RB
mean/VB
thrifts/NNS
are/VBP
biased/VBN
,/,
but/CC
conceded/VBD
that/IN
it/PRP
does/VBZ
n't/RB
have/VB
data/NNS
about/IN
applicants/NNS
to/TO
determine/VB
why/WRB
blacks/NNS
are/VBP
rejected/VBN
more/RBR
often/RB
./.
Emergency/NN
crews/NNS
searched/VBD
through/IN
the/DT
charred/VBN
rubble/NN
of/IN
a/DT
Phillips/NNP
Petroleum/NNP
Co./NNP
plastics/NNS
plant/NN
near/IN
Pasadena/NNP
,/,
Texas/NNP
,/,
where/WRB
a/DT
series/NN
of/IN
explosions/NNS
Monday/NNP
killed/VBD
at/IN
least/JJS
two/CD
people/NNS
and/CC
injured/VBD
124/CD
./.
Company/NN
officials/NNS
said/VBD
22/CD
workers/NNS
were/VBD
missing/VBG
and/CC
presumed/VBN
dead/JJ
./.
Safety/NN
authorities/NNS
did/VBD
n't/RB
immediately/RB
know/VB
the/DT
cause/NN
of/IN
the/DT
blasts/NNS
./.
NATO/NNP
defense/NN
ministers/NNS
opened/VBD
a/DT
two-day/JJ
meeting/NN
in/IN
Portugal/NNP
to/TO
assess/VB
the/DT
alliance/NN
's/POS
nuclear-weapons/JJ
needs/NNS
amid/IN
reduced/VBN
East-West/NNP
tensions/NNS
./.
The/DT
ministers/NNS
ordered/VBD
a/DT
study/NN
on/IN
the/DT
strategic/JJ
role/NN
of/IN
nuclear/JJ
arms/NNS
in/IN
Western/NNP
Europe/NNP
once/IN
Soviet/NNP
conventional/JJ
weapons/NNS
are/VBP
reduced/VBN
in/IN
the/DT
East/NNP
bloc/NN
./.
The/DT
Justice/NNP
Department/NNP
scrambled/VBD
to/TO
play/VB
down/IN
the/DT
significance/NN
of/IN
revised/VBN
guidelines/NNS
concerning/VBG
prosecutions/NNS
under/IN
the/DT
federal/JJ
racketeering/NN
law/NN
./.
The/DT
guidelines/NNS
,/,
which/WDT
discourage/VBP
prosecutors/NNS
from/IN
seeking/VBG
court/NN
orders/NNS
seizing/VBG
the/DT
assets/NNS
of/IN
certain/JJ
racketeering/NN
defendants/NNS
prior/RB
to/TO
trial/NN
,/,
were/VBD
first/RB
disclosed/VBN
this/DT
week/NN
./.
Died/VBD
:/:
S./NNP
Clark/NNP
Beise/NNP
,/,
91/CD
,/,
ex-president/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
Bank/NNP
of/IN
America/NNP
NT&SA/NNP
,/,
Saturday/NNP
,/,
in/IN
Hillsboro/NNP
,/,
Calif/NNP
./.
STOCK/NN
PRICES/NNS
SWUNG/VBD
wildly/RB
as/IN
the/DT
market/NN
reacted/VBD
to/TO
an/DT
initial/JJ
plunge/NN
by/IN
UAL/NNP
shares/NNS
,/,
followed/VBN
by/IN
a/DT
sharp/JJ
rebound/NN
in/IN
the/DT
afternoon/NN
./.
The/DT
Dow/NNP
Jones/NNP
industrials/NNS
,/,
down/IN
over/IN
80/CD
points/NNS
in/IN
the/DT
morning/NN
,/,
closed/VBN
off/IN
3.69/CD
,/,
at/IN
2659.22/CD
./.
Bond/NN
prices/NNS
surged/VBD
in/IN
reaction/NN
to/TO
the/DT
sell-off/NN
in/IN
stocks/NNS
,/,
then/RB
eased/VBD
slightly/RB
during/IN
the/DT
afternoon/NN
recovery/NN
./.
The/DT
dollar/NN
finished/VBD
lower/JJR
./.
UAL/NNP
's/POS
stock/NN
regained/VBD
most/JJS
of/IN
an/DT
early/JJ
loss/NN
amid/IN
speculation/NN
one/CD
or/CC
more/JJR
investors/NNS
may/MD
challenge/VB
the/DT
airline/NN
's/POS
decision/NN
to/TO
stay/VB
independent/JJ
./.
The/DT
stock/NN
closed/VBD
down/IN
$/$
8.375/CD
,/,
at/IN
$/$
170/CD
,/,
after/IN
plunging/VBG
$/$
33/CD
,/,
to/TO
$/$
145/CD
./.
Ford/NNP
may/MD
seek/VB
all/DT
of/IN
Jaguar/NNP
,/,
setting/VBG
the/DT
stage/NN
for/IN
a/DT
possible/JJ
bidding/NN
war/NN
with/IN
GM/NNP
./.
Jaguar/NNP
has/VBZ
been/VBN
discussing/VBG
an/DT
alliance/NN
with/IN
GM/NNP
,/,
but/CC
Ford/NNP
's/POS
move/NN
may/MD
derail/VB
the/DT
talks/NNS
./.
Car/NN
and/CC
truck/NN
sales/NNS
slid/VBD
20.5/CD
%/NN
in/IN
mid-October/JJ
as/IN
U.S./NNP
manufacturers/NNS
paid/VBD
the/DT
price/NN
for/IN
heavy/JJ
incentives/NNS
earlier/RBR
in/IN
the/DT
year/NN
./.
General/NNP
Motors/NNPS
continued/VBD
to/TO
be/VB
hardest/RBS
hit/VBN
./.
Durable/JJ
goods/NNS
orders/NNS
slipped/VBD
0.1/CD
%/NN
in/IN
September/NNP
,/,
reflecting/VBG
weakening/VBG
auto/NN
demand/NN
after/IN
a/DT
spurt/NN
of/IN
orders/NNS
for/IN
new/JJ
1990/CD
models/NNS
./.
Excluding/VBG
transportation/NN
items/NNS
,/,
orders/NNS
rose/VBD
1.8/CD
%/NN
./.
Norfolk/NNP
Southern/NNP
's/POS
board/NN
approved/VBD
a/DT
buy-back/NN
of/IN
up/IN
to/TO
45/CD
million/CD
shares/NNS
,/,
valued/VBN
at/IN
over/IN
$/$
1.7/CD
billion/CD
./.
The/DT
repurchase/NN
,/,
coupled/VBN
with/IN
an/DT
earlier/JJR
buyback/NN
,/,
will/MD
reduce/VB
the/DT
firm/NN
's/POS
shares/NNS
outstanding/JJ
by/IN
over/IN
26/CD
%/NN
./.
PS/NNP
New/NNP
Hampshire/NNP
received/VBD
a/DT
sweetened/VBN
$/$
2.25/CD
billion/CD
offer/NN
from/IN
Northeast/NNP
Utilities/NNPS
,/,
likely/RB
spurring/VBG
a/DT
new/JJ
round/NN
of/IN
bidding/NN
for/IN
the/DT
utility/NN
./.
GE/NNP
executives/NNS
were/VBD
accused/VBN
by/IN
U.S./NNP
prosecutors/NNS
of/IN
providing/VBG
``/``
misleading/JJ
and/CC
false/JJ
''/''
data/NNS
to/TO
the/DT
Pentagon/NNP
in/IN
1985/CD
to/TO
cover/VB
up/IN
``/``
longstanding/JJ
fraudulent/JJ
''/''
billing/NN
practices/NNS
./.
Texaco/NNP
said/VBD
profit/NN
rose/VBD
11/CD
%/NN
in/IN
the/DT
quarter/NN
,/,
partly/RB
due/JJ
to/TO
a/DT
massive/JJ
restructuring/NN
./.
Sun/NNP
posted/VBD
a/DT
gain/NN
./.
Mobil/NNP
,/,
Shell/NNP
and/CC
Chevron/NNP
had/VBD
declines/NNS
./.
Mobil/NNP
is/VBZ
preparing/VBG
to/TO
slash/VB
its/PRP$
work/NN
force/NN
in/IN
the/DT
U.S./NNP
,/,
possibly/RB
as/RB
soon/RB
as/IN
next/JJ
month/NN
,/,
sources/NNS
said/VBD
./.
Sears/NNP
posted/VBD
a/DT
16/CD
%/NN
drop/NN
in/IN
third-quarter/JJ
profit/NN
as/IN
U.S./NNP
retail/NN
operations/NNS
recorded/VBD
the/DT
first/JJ
loss/NN
in/IN
over/IN
five/CD
years/NNS
./.
The/DT
results/NNS
show/VBP
Sears/NNP
is/VBZ
struggling/VBG
to/TO
attract/VB
shoppers/NNS
./.
Digital/NNP
Equipment/NNP
announced/VBD
its/PRP$
first/JJ
mainframe/NN
computers/NNS
,/,
targeting/VBG
IBM/NNP
's/POS
largest/JJS
market/NN
and/CC
heating/VBG
up/IN
the/DT
industry/NN
's/POS
biggest/JJS
rivalry/NN
./.
Cray/NNP
Research/NNP
expects/VBZ
supercomputer/NN
sales/NNS
to/TO
be/VB
flat/JJ
next/JJ
year/NN
,/,
the/DT
latest/JJS
in/IN
a/DT
series/NN
of/IN
negative/JJ
announcements/NNS
by/IN
the/DT
company/NN
./.
Short/JJ
interest/NN
increased/VBD
6/CD
%/NN
in/IN
the/DT
Nasdaq/NNP
over-the-counter/NN
market/NN
for/IN
the/DT
month/NN
ended/VBD
Oct./NNP
13/CD
./.
Salomon/NNP
posted/VBD
an/DT
unexpectedly/RB
big/JJ
gain/NN
in/IN
quarterly/JJ
earnings/NNS
,/,
aided/VBN
by/IN
its/PRP$
securities/NNS
trading/NN
and/CC
investment/NN
banking/NN
activities/NNS
./.
Procter/NNP
&/CC
Gamble/NNP
's/POS
profit/NN
surged/VBD
38/CD
%/NN
in/IN
its/PRP$
latest/JJS
fiscal/JJ
quarter/NN
,/,
aided/VBN
by/IN
a/DT
gain/NN
from/IN
a/DT
legal/JJ
settlement/NN
and/CC
continued/VBN
growth/NN
overseas/RB
./.
Goodyear/NNP
's/POS
profit/NN
rose/VBD
11/CD
%/NN
in/IN
the/DT
quarter/NN
,/,
buoyed/VBN
by/IN
improved/VBN
operating/NN

results/NNS
in/IN
its/PRP$
tire/NN
business/NN
./.
Markets/NNS
--/:
Stocks/NNS
:/:
Volume/NN
237,960,000/CD
shares/NNS
./.
Dow/NNP
Jones/NNP
industrials/NNS
2659.22/CD
,/,
off/IN
3.69/CD
;/:
transportation/NN
1210.70/CD
,/,
off/IN
25.96/CD
;/:
utilities/NNS
215.04/CD
,/,
off/IN
0.31/CD
./.
Bonds/NNS
:/:
Shearson/NNP
Lehman/NNP
Hutton/NNP
Treasury/NNP
index/NN
3425.22/CD
,/,
up/IN
Commodities/NNS
:/:
Dow/NNP
Jones/NNP
futures/NNS
index/NN
129.24/CD
,/,
off/IN
0.25/CD
;/:
spot/NN
index/NN
130.76/CD
,/,
off/IN
0.88/CD
./.
Dollar/NN
:/:
141.45/CD
yen/NN
,/,
off/IN
0.45/CD
;/:
1.8355/CD
marks/NNS
,/,
off/IN
0.0115/CD
./.
Genetic/JJ
Defect/NN
Spotted/VBN
In/IN
3-Day-Old/JJ
Embryo/NN
RESEARCHERS/NNS
diagnosed/VBD
a/DT
genetic/JJ
defect/NN
in/IN
a/DT
three-day-old/JJ
mouse/NN
embryo/NN
in/IN
an/DT
experiment/NN
directly/RB
applicable/JJ
to/TO
humans/NNS
./.
Prenatal/JJ
diagnosis/NN
of/IN
genetic/JJ
defects/NNS
as/RB
early/RB
as/IN
the/DT
sixth/JJ
week/NN
of/IN
pregnancy/NN
is/VBZ
increasingly/RB
common/JJ
today/NN
./.
But/CC
the/DT
mouse/NN
experiment/NN
at/IN
a/DT
Medical/NNP
Research/NNP
Council/NNP
laboratory/NN
in/IN
London/NNP
shows/VBZ
genetic/JJ
defects/NNS
can/MD
be/VB
detected/VBN
three/CD
days/NNS
after/IN
conception/NN
using/VBG
a/DT
new/JJ
American-developed/JJ
gene-copying/JJ
technique/NN
./.
The/DT
experiment/NN
,/,
applicable/JJ
to/TO
many/JJ
genetic/JJ
disorders/NNS
,/,
involved/VBN
beta-thalassemia/NN
,/,
a/DT
severe/JJ
blood/NN
anemia/NN
resulting/VBG
from/IN
a/DT
missing/VBG
hemoglobin/NN
gene/NN
./.
It/PRP
's/VBZ
an/DT
inherited/VBN
human/JJ
disorder/NN
that/WDT
's/VBZ
been/VBN
duplicated/VBN
in/IN
mice/NNS
./.
In/IN
the/DT
experiment/NN
,/,
mice/NNS
with/IN
the/DT
defective/JJ
gene/NN
were/VBD
mated/VBN
./.
Three/CD
days/NNS
later/RB
,/,
before/IN
the/DT
new/JJ
embryo/NN
had/VBD
become/VBN
implanted/VBN
in/IN
the/DT
uterus/NN
,/,
it/PRP
was/VBD
washed/VBN
out/IN
of/IN
the/DT
mother/NN
mouse/NN
./.
The/DT
embryo/NN
had/VBD
progressed/VBN
only/RB
to/TO
a/DT
clump/NN
of/IN
eight/CD
identical/JJ
cells/NNS
./.
One/CD
cell/NN
was/VBD
teased/VBN
out/IN
,/,
and/CC
its/PRP$
DNA/NNP
extracted/VBN
./.
Using/VBG
the/DT
new/JJ
technique/NN
developed/VBN
by/IN
Cetus/NNP
Corp./NNP
,/,
called/VBN
the/DT
polymerase/NN
chain/NN
reaction/NN
,/,
the/DT
scientists/NNS
rapidly/RB
made/VBD
millions/NNS
of/IN
copies/NNS
of/IN
the/DT
section/NN
of/IN
DNA/NNP
that/WDT
ordinarily/RB
contains/VBZ
the/DT
hemoglobin/NN
gene/NN
,/,
providing/VBG
enough/JJ
copies/NNS
to/TO
test/VB
./.
A/DT
genetic/JJ
probe/NN
showed/VBD
the/DT
hemoglobin/NN
gene/NN
was/VBD
missing/VBG
,/,
the/DT
researchers/NNS
report/VBP
in/IN
the/DT
medical/JJ
journal/NN
Lancet/NNP
./.
In/IN
the/DT
report/NN
,/,
two/CD
molecular/JJ
biologists/NNS
suggest/VBP
such/JJ
embryo/NN
diagnosis/NN
can/MD
be/VB
used/VBN
by/IN
couples/NNS
at/IN
high/JJ
risk/NN
of/IN
passing/VBG
a/DT
genetic/JJ
defect/NN
to/TO
a/DT
child/NN
./.
For/IN
example/NN
,/,
infertile/JJ
couples/NNS
who/WP
have/VBP
the/DT
woman/NN
's/POS
eggs/NNS
fertilized/VBN
in/IN
the/DT
test/NN
tube/NN
usually/RB
have/VBP
several/JJ
eggs/NNS
fertilized/VBN
at/IN
a/DT
time/NN
./.
When/WRB
the/DT
fertilized/VBN
cells/NNS
divide/VBP
to/TO
eight/CD
cells/NNS
,/,
a/DT
single/JJ
cell/NN
from/IN
each/DT
embryo/NN
can/MD
be/VB
tested/VBN
for/IN
genetic/JJ
defects/NNS
./.
A/DT
healthy/JJ
embryo/NN
can/MD
be/VB
picked/VBN
for/IN
implantation/NN
and/CC
defective/JJ
ones/NNS
discarded/VBN
./.
Or/CC
in/IN
other/JJ
couples/NNS
,/,
the/DT
embryo/NN
could/MD
be/VB
temporarily/RB
taken/VBN
out/IN
and/CC
tested/VBN
three/CD
days/NNS
after/IN
conception/NN
and/CC
returned/VBN
if/IN
healthy/JJ
,/,
or/CC
discarded/VBN
if/IN
not/RB
./.
Yeast/NN
Adapted/VBN
to/TO
Make/VB
Gene-Spliced/JJ
Drugs/NNS
AN/DT
OIL/NNP
COMPANY/NNP
finds/VBZ
a/DT
sideline/NN
in/IN
the/DT
microscopic/JJ
world/NN
of/IN
yeast/NN
./.
In/IN
the/DT
early/JJ
1970s/CD
,/,
when/WRB
the/DT
``/``
world/NN
food/NN
crisis/NN
''/''
was/VBD
a/DT
major/JJ
worry/NN
,/,
Phillips/NNP
Petroleum/NNP
Co./NNP
,/,
like/IN
several/JJ
other/JJ
big/JJ
companies/NNS
,/,
began/VBD
developing/VBG
``/``
single-cell/JJ
protein/NN
,/,
''/''
edible/JJ
protein/NN
made/VBN
by/IN
microbes/NNS
feeding/VBG
on/IN
non-edible/JJ
materials/NNS
./.
Phillips/NNP
found/VBD
and/CC
improved/VBD
a/DT
yeast/NN
,/,
``/``
Pichia/NN
pastoris/NN
,/,
''/''
which/WDT
made/VBD
protein/NN
from/IN
natural/JJ
gas-derived/JJ
alcohol/NN
./.
It/PRP
also/RB
could/MD
convert/VB
glucose/NN
from/IN
farm/NN
wastes/NNS
into/IN
edible/JJ
protein/NN
./.
Single-cell/JJ
protein/NN
never/RB
panned/VBD
out/IN
,/,
and/CC
most/JJS
companies/NNS
abandoned/VBD
such/JJ
research/NN
./.
But/CC
Phillips/NNP
persisted/VBD
,/,
calling/VBG
in/IN
scientists/NNS
from/IN
the/DT
Salk/NNP
Institute/NNP
./.
They/PRP
've/VBP
now/RB
adapted/VBN
the/DT
yeast/NN
to/TO
making/VBG
genetically/RB
engineered/VBN
drugs/NNS
./.
Like/IN
the/DT
bacteria/NNS
used/VBN
by/IN
genetic/JJ
engineers/NNS
,/,
the/DT
yeast/NN
can/MD
take/VB
in/IN
human/JJ
genes/NNS
and/CC
churn/VB
out/IN
human/JJ
proteins/NNS
for/IN
medical/JJ
use/NN
./.
But/CC
the/DT
yeast/NN
genetic/JJ
apparatus/NN
is/VBZ
more/JJR
like/IN
that/IN
of/IN
animals/NNS
than/IN
the/DT
bacterial/JJ
genetic/JJ
apparatus/NN
./.
Thus/RB
,/,
the/DT
proteins/NNS
from/IN
the/DT
yeast/NN
are/VBP
molecularly/RB
more/JJR
like/IN
human/JJ
proteins/NNS
than/IN
those/DT
from/IN
bacteria/NNS
./.
The/DT
oil/NN
company/NN
claims/VBZ
its/PRP$
yeast/NN
system/NN
also/RB
is/VBZ
better/JJR
than/IN
bacteria/NNS
at/IN
high-volume/JJ
production/NN
of/IN
genetically/RB
engineered/VBN
drugs/NNS
./.
Chiron/NNP
Corp./NNP
,/,
an/DT
Emeryville/NNP
,/,
Calif./NNP
,/,
biotechnology/NN
firm/NN
,/,
is/VBZ
seeing/VBG
if/IN
the/DT
Phillips/NNS
yeast/NN
can/MD
be/VB
used/VBN
to/TO
make/VB
its/PRP$
genetically/RB
engineered/VBN
human/JJ
proteins/NNS
./.
Peeking/VBG
Inside/IN
Arteries/NN
From/IN
Outside/IN
the/DT
Body/NN
VISUALIZING/VBG
BLOOD/NN
vessels/NNS
without/IN
poking/VBG
catheters/NNS
into/IN
the/DT
body/NN
may/MD
come/VB
out/IN
of/IN
research/NN
at/IN
AT&T/NNP
Bell/NNP
Laboratories/NNPS
./.
Strokes/NNS
,/,
heart/NN
attacks/NNS
,/,
leg/NN
pains/NNS
intermittent/JJ
claudication/NN
other/JJ
problems/NNS
stem/VBP
from/IN
clogging/VBG
of/IN
the/DT
arteries/NNS
by/IN
cholesterol-rich/JJ
deposits/NNS
./.
At/IN
present/NN
,/,
doctors/NNS
can/MD
see/VB
how/WRB
badly/RB
an/DT
artery/NN
is/VBZ
clogged/VBN
only/RB
by/IN
inserting/VBG
a/DT
thin/JJ
catheter/NN
into/IN
the/DT
artery/NN
and/CC
injecting/VBG
a/DT
fluid/NN
that/WDT
makes/VBZ
the/DT
arteries/NNS
visible/JJ
on/IN
X-rays/NNS
./.
A/DT
non-invasive/JJ
method/NN
is/VBZ
being/VBG
researched/VBN
by/IN
biophysicist/NN
Lynn/NNP
Jelinski/NNP
at/IN
the/DT
AT&T/NNP
unit/NN
./.
It/PRP
relies/VBZ
on/IN
the/DT
fact/NN
that/IN
certain/JJ
atoms/NNS
give/VBP
off/IN
detectable/JJ
signals/NNS
when/WRB
subjected/VBN
to/TO
an/DT
intense/JJ
magnetic/JJ
field/NN
./.
It/PRP
's/VBZ
the/DT
same/JJ
phenomenon/NN
used/VBN
in/IN
the/DT
new/JJ
MRI/NNP
magnetic/JJ
resonance/NN
imaging/NN
scanners/NNS
being/VBG
used/VBN
in/IN
hospitals/NNS
in/IN
place/NN
of/IN
X-ray/NN
scans/NNS
./.
In/IN
the/DT
Bell/NNP
Labs/NNPS
experiments/NNS
,/,
an/DT
MRI-type/JJ
of/IN
machine/NN
,/,
synchronized/VBN
with/IN
the/DT
heartbeat/NN
via/IN
an/DT
electrocardiogram/NN
,/,
rapidly/RB
flashes/VBZ
a/DT
magnetic/JJ
field/NN
on/RP
and/CC
off/RP
as/IN
blood/NN
passes/VBZ
a/DT
certain/JJ
point/NN
in/IN
a/DT
vessel/NN
./.
The/DT
rapidly/RB
flashing/VBG
return/NN
signals/NNS
from/IN
excited/VBN
hydrogen/NN
atoms/NNS
in/IN
the/DT
blood/NN
give/VBP
a/DT
``/``
stop-motion/JJ
''/''
movie/NN
of/IN
the/DT
blood-filled/JJ
vessel/NN
,/,
(/(
like/IN
the/DT
``/``
stop-motion/NN
''/''
seen/VBN
in/IN
disco/NN
dancers/NNS
when/WRB
a/DT
strobe/NN
light/NN
is/VBZ
flashing/VBG
)/)
./.
The/DT
scientists/NNS
have/VBP
experimented/VBN
on/IN
the/DT
tiny/JJ
neck/NN
arteries/NNS
of/IN
rats/NNS
./.
They/PRP
've/VBP
been/VBN
able/JJ
to/TO
measure/VB
the/DT
minuscule/JJ
movements/NNS
of/IN
the/DT
artery/NN
wall/NN
as/IN
the/DT
beating/VBG
heart/NN
raises/VBZ
and/CC
lowers/VBZ
the/DT
pressure/NN
of/IN
the/DT
flowing/VBG
blood/NN
,/,
a/DT
first/JJ
for/IN
such/JJ
tiny/JJ
blood/NN
vessels/NNS
,/,
they/PRP
report/VBP
in/IN
Nature/NNP
,/,
a/DT
scientific/JJ
journal/NN
./.
They/PRP
now/RB
are/VBP
experimenting/VBG
with/IN
measuring/VBG
blood/NN
flow/NN
./.
The/DT
ultimate/JJ
hope/NN
is/VBZ
that/IN
the/DT
technique/NN
could/MD
identify/VB
diseased/JJ
vessels/NNS
./.
Odds/NNPS
and/CC
Ends/NNPS
TESTS/NNS
ON/IN
2,800-year-old/JJ
mummies/NNS
from/IN
Chile/NNP
indicate/VBP
ancient/JJ
wood/NN
fires/NNS
did/VBD
n't/RB
produce/VB
dioxins/NNS
or/CC
dibenzofurans/NNS
,/,
contradicting/VBG
a/DT
theory/NN
the/DT
two/CD
pollutants/NNS
today/NN
are/VBP
coming/VBG
from/IN
wood/NN
burning/NN
,/,
General/NNP
Electric/NNP
Co./NNP
reports/VBZ
in/IN
Environmental/NNP
Science/NNP
&/CC
Technology/NNP
magazine/NN
.../:
./.
Almost/RB
40/CD
%/NN
of/IN
schizophrenic/JJ
men/NNS
have/VBP
an/DT
impaired/VBN
sense/NN
of/IN
smell/NN
vs./CC
fewer/JJR
than/IN
10/CD
%/NN
of/IN
schizophrenic/JJ
women/NNS
,/,
reports/VBZ
the/DT
American/NNP
Journal/NNP
of/IN
Psychiatry/NNP
./.
The/DT
Justice/NNP
Department/NNP
said/VBD
it/PRP
filed/VBD
a/DT
lawsuit/NN
seeking/VBG
more/RBR
than/IN
$/$
7.7/CD
million/CD
from/IN
a/DT
Meredith/NNP
Corp./NNP
unit/NN
on/IN
charges/NNS
that/IN
the/DT
company/NN
defrauded/VBD
the/DT
government/NN
on/IN
a/DT
contract/NN
to/TO
provide/VB
relocation/NN
services/NNS
for/IN
federal/JJ
employees/NNS
./.
The/DT
suit/NN
,/,
filed/VBN
in/IN
federal/JJ
trial/NN
court/NN
in/IN
Des/NNP
Moines/NNP
,/,
Iowa/NNP
,/,
where/WRB
Meredith/NNP
is/VBZ
based/VBN
,/,
alleges/VBZ
that/IN
the/DT
diversified/VBN
media/NNS
company/NN
's/POS
relocation/NN
unit/NN
cheated/VBD
the/DT
government/NN
by/IN
misrepresenting/VBG
the/DT
value/NN
of/IN
government/NN
employees/NNS
'/POS
homes/NNS
./.
The/DT
government/NN
contract/NN
required/VBD
Meredith/NNP
Relocation/NNP
Corp./NNP
to/TO
purchase/VB
employees/NNS
'/POS
homes/NNS
based/VBN
on/IN
independent/JJ
appraisals/NNS
./.
The/DT
Justice/NNP
Department/NNP
alleges/VBZ
that/IN
the/DT
company/NN
``/``
engaged/VBD
in/IN
various/JJ
forms/NNS
of/IN
misrepresentation/NN
''/''
with/IN
the/DT
goal/NN
of/IN
reducing/VBG
the/DT
appraised/VBN
value/NN
of/IN
employees/NNS
'/POS
homes/NNS
./.
In/IN
the/DT
suit/NN
,/,
the/DT
department/NN
seeks/VBZ
to/TO
recover/VB
$/$
7.7/CD
million/CD
in/IN
costs/NNS
incurred/VBN
when/WRB
the/DT
government/NN
terminated/VBD
its/PRP$
contract/NN
with/IN
Meredith/NNP
Relocation/NNP
and/CC
sought/VBD
other/JJ
contracts/NNS
to/TO
replace/VB
it/PRP
./.
The/DT
department/NN
also/RB
said/VBD
it/PRP
seeks/VBZ
``/``
three/CD
times/NNS
the/DT
government/NN
's/POS
damages/NNS
,/,
which/WDT
are/VBP
presently/RB
undetermined/JJ
,/,
plus/CC
penalties/NNS
./.
''/''
Officials/NNS
with/IN
Meredith/NNP
did/VBD
n't/RB
have/VB
any/DT
immediate/JJ
comment/NN
on/IN
the/DT
suit/NN
./.
Lloyd/NNP
's/POS
of/IN
London/NNP
said/VBD
it/PRP
plans/VBZ
to/TO
clamp/VB
down/IN
on/IN
the/DT
ability/NN
of/IN
underwriting/VBG
syndicates/NNS
to/TO
leave/VB
their/PRP$
annual/JJ
accounts/NNS
open/JJ
beyond/IN
the/DT
customary/JJ
three/CD
years/NNS
./.
Underwriting/VBG
syndicates/NNS
at/IN
Lloyd/NNP
's/POS
,/,
the/DT
world/NN
's/POS
largest/JJS
insurance/NN
market/NN
,/,
generally/RB
do/VBP
n't/RB
close/VB
their/PRP$
accounts/NNS
for/IN
three/CD
years/NNS
,/,
to/TO
allow/VB
for/IN
the/DT
filing/NN
of/IN
claims/NNS
and/CC
litigation/NN
./.
When/WRB
such/JJ
claims/NNS
and/CC
litigation/NN
extend/VBP
beyond/IN
the/DT
period/NN
,/,
the/DT
syndicates/NNS
can/MD
extend/VB
their/PRP$
accounting/NN
deadlines/NNS
./.
Lloyd/NNP
's/POS
said/VBD
there/EX
are/VBP
currently/RB
115/CD
open/JJ
account/NN
years/NNS
involving/VBG
68/CD
of/IN
the/DT
market/NN
's/POS
roughly/RB
360/CD
syndicates/NNS
./.
The/DT
open-year/JJ
accounting/NN
practice/NN
``/``
is/VBZ
widely/RB
recognized/VBN
within/IN
Lloyd/NNP
's/POS
as/RB
of/IN
serious/JJ
concern/NN
''/''
to/TO
the/DT
31,329/CD
member/NN
investors/NNS
,/,
who/WP
underwrite/VBP
insurance/NN
at/IN
Lloyd/NNP
's/POS
in/IN
return/NN
for/IN
premium/NN
and/CC
investment/NN
income/NN
,/,
Lloyd/NNP
's/POS
said/VBD
./.
The/DT
procedure/NN
causes/VBZ
``/``
great/JJ
uncertainty/NN
''/''
because/IN
an/DT
investor/NN
ca/MD
n't/RB
be/VB
sure/JJ
of/IN
his/PRP$
or/CC
her/PRP$
individual/JJ
liability/NN
,/,
Lloyd/NNP
's/POS
said/VBD
./.
As/IN
a/DT
result/NN
,/,
the/DT
insurance/NN
market/NN
plans/VBZ
new/JJ
measures/NNS
to/TO
restrict/VB
the/DT
ability/NN
of/IN
syndicate/NN
officials/NNS
to/TO
leave/VB
years/NNS
open/JJ
./.
Lloyd/NNP
's/VBZ
said/VBD
it/PRP
expects/VBZ
to/TO
enact/VB
new/JJ
rules/NNS
mandating/VBG
the/DT
changes/NNS
by/IN
year/NN
end/NN
./.
Under/IN
the/DT
new/JJ
rules/NNS
,/,
the/DT
officials/NNS
will/MD
have/VB
to/TO
secure/VB
additional/JJ
information/NN
and/CC
reports/NNS
from/IN
actuaries/NNS
,/,
including/VBG
an/DT
assessment/NN
of/IN
whether/IN
officials/NNS
have/VBP
acted/VBN
reasonably/RB
./.
In/IN
addition/NN
,/,
officials/NNS
will/MD
have/VB
to/TO
get/VB
quotes/NNS
for/IN
certain/JJ
reinsurance/NN
contracts/NNS
and/CC
obtain/VB
approvals/NNS
from/IN
other/JJ
syndicate/NN
directors/NNS
./.
Computer/NNP
Associates/NNPS
International/NNP
Inc./NNP
reported/VBD
earnings/NNS
for/IN
the/DT
second/JJ
quarter/NN
,/,
ended/VBD
Sept./NNP
30/CD
,/,
plummeted/VBD
66/CD
%/NN
,/,
primarily/RB
because/IN
of/IN
the/DT
acquisition/NN
of/IN
Cullinet/NNP
Software/NNP
Inc/NNP
./.
The/DT
nation/NN
's/POS
largest/JJS
software/NN
company/NN
earned/VBD
$/$
9.6/CD
million/CD
,/,
or/CC
five/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
$/$
28/CD
million/CD
,/,
or/CC
16/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Revenue/NN
rose/VBD
5/CD
%/NN
to/TO
$/$
282/CD
million/CD
from/IN
$/$
268.3/CD
million/CD
./.
The/DT
drop/NN
in/IN
earnings/NNS
had/VBD
been/VBN
anticipated/VBN
by/IN
most/JJS
Wall/NNP
Street/NNP
analysts/NNS
,/,
but/CC
the/DT
results/NNS
were/VBD
reported/VBN
after/IN
the/DT
market/NN
closed/VBD
./.
Computer/NNP
Associates/NNPS
closed/VBD
at/IN
$/$
13.625/CD
,/,
down/IN
25/CD
cents/NNS
,/,
in/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
Anthony/NNP
Wang/NNP
,/,
president/NN
,/,
attributed/VBD
the/DT
drop/NN
to/TO
the/DT
disruption/NN
of/IN
the/DT
company/NN
's/POS
business/NN
resulting/VBG
from/IN
the/DT
prolonged/VBN
process/NN
of/IN
acquiring/VBG
Cullinet/NNP
./.
The/DT
acquisition/NN
was/VBD
completed/VBN
in/IN
September/NNP
./.
In/IN
August/NNP
,/,
the/DT
company/NN
warned/VBD
investors/NNS
that/IN
the/DT
acquisition/NN
was/VBD
being/VBG
delayed/VBN
,/,
and/CC
many/JJ
customers/NNS
were/VBD
holding/VBG
off/IN
on/IN
purchase/NN
decisions/NNS
until/IN
the/DT
takeover/NN
was/VBD
completed/VBN
./.
The/DT
delays/NNS
mainly/RB
affected/VBD
sales/NNS
of/IN
data/NN
base/NN
management/NN
products/NNS
,/,
a/DT
core/NN
area/NN
for/IN
both/DT
Computer/NNP
Associates/NNPS
and/CC
Cullinet/NNP
,/,
as/RB
well/RB
as/IN
sales/NNS
of/IN
other/JJ
products/NNS
as/IN
part/NN
of/IN
package/NN
sales/NNS
./.
Residents/NNS
of/IN
this/DT
city/NN
soon/RB
will/MD
be/VB
seeing/VBG
ads/NNS
urging/VBG
them/PRP
to/TO
visit/VB
``/``
Cleveland/NNP
's/POS
outdoor/JJ
museum/NN
''/''
--/:
Lake/NNP
View/NNP
Cemetery/NNP
./.
Despite/IN
such/JJ
famous/JJ
tenants/NNS
as/IN
oil/NN
magnate/NN
John/NNP
D./NNP
Rockefeller/NNP
,/,
Lake/NNP
View/NNP
Cemetery/NNP
has/VBZ
fallen/VBN
on/IN
hard/JJ
times/NNS
./.
So/IN
the/DT
inner-city/NN
burial/NN
ground/NN
is/VBZ
trying/VBG
to/TO
resurrect/VB
itself/PRP
with/IN
a/DT
television/NN
advertising/NN
campaign/NN
./.
The/DT
ads/NNS
celebrate/VBP
the/DT
achievements/NNS
of/IN
some/DT
of/IN
Lake/NNP
View/NNP
's/POS
residents/NNS
./.
A/DT
spot/NN
honoring/VBG
Bill/NNP
White/NNP
,/,
the/DT
inventor/NN
of/IN
chewing/VBG
gum/NN
,/,
shows/VBZ
a/DT
woman/NN
trying/VBG
to/TO
extricate/VB
her/PRP$
high-heeled/JJ
shoe/NN
from/IN
a/DT
wad/NN
of/IN
gum/NN
./.
Another/DT
focuses/VBZ
on/IN
Charles/NNP
Brush/NNP
,/,
the/DT
first/JJ
person/NN
to/TO
light/VB
a/DT
city/NN
electrically/RB
./.
It/PRP
shows/VBZ
a/DT
boy/NN
hurling/VBG
rocks/NNS
at/IN
a/DT
street/NN
lamp/NN
./.
Street/NN
lights/NNS
,/,
the/DT
ad/NN
points/VBZ
out/IN
,/,
``/``
helped/VBD
sharpen/VB
the/DT
arm/NN
of/IN
many/JJ
a/DT
budding/VBG
baseball/NN
player/NN
./.
''/''
Cemetery/NN
officials/NNS
hope/VBP
the/DT
ads/NNS
,/,
which/WDT
will/MD
begin/VB
airing/NN
next/IN
month/NN
,/,
will/MD
not/RB
only/RB
draw/VB
visitors/NNS
but/CC
bolster/VB
burials/NNS
and/CC
endowment/NN
fund/NN
contributions/NNS
./.
Lake/NNP
View/NNP
had/VBD
an/DT
operating/VBG
deficit/NN
last/JJ
year/NN
and/CC
has/VBZ
a/DT
poor/JJ
reputation/NN
as/IN
an/DT
out-of-repair/NN
and/CC
crime-infested/JJ
cemetery/NN
./.
The/DT
private/JJ
,/,
non-profit/JJ
cemetery/NN
has/VBZ
had/VBN
trouble/NN
competing/VBG
against/IN
its/PRP$
for-profit/JJ
counterparts/NNS
,/,
which/WDT
use/VBP
direct/JJ
mail/NN
and/CC
other/JJ
advertising/NN
to/TO
sell/VB
lots/NNS
./.
``/``
We/PRP
do/VBP
n't/RB
want/VB
to/TO
be/VB
known/VBN
as/IN
ambulance/NN
chasers/NNS
,/,
''/''
says/VBZ
William/NNP
Garrison/NNP
,/,
Lake/NNP
View/NNP
's/POS
president/NN
./.
``/``
We/PRP
want/VBP
people/NNS
to/TO
think/VB
of/IN
Lake/NNP
View/NNP
as/IN
an/DT
historical/JJ
park/NN
and/CC
educational/JJ
experience/NN
.../:
./.
A/DT
pleasant/JJ
place/NN
to/TO
come/VB
and/CC
spend/VB
a/DT
few/JJ
hours/NNS
./.
''/''
Not/RB
all/DT
of/IN
the/DT
cemetery/NN
's/POS
better-known/JJ
tenants/NNS
lend/VBP
themselves/PRP
to/TO
the/DT
promotional/JJ
job/NN
at/IN
hand/NN
,/,
however/RB
./.
For/IN
example/NN
,/,
President/NNP
James/NNP
A./NNP
Garfield/NNP
is/VBZ
entombed/VBN
here/RB
,/,
the/DT
victim/NN
of/IN
an/DT
assassination/NN
in/IN
1881/CD
./.
Mr./NNP
Garrison/NNP
notes/VBZ
,/,
however/RB
,/,
that/IN
the/DT
Garfield/NNP
tomb/NN
is/VBZ
one/CD
of/IN
the/DT
nation/NN
's/POS
premier/JJR
examples/NNS
of/IN
Romanesque/JJ
architecture/NN
./.
Mr./NNP
Rockefeller/NNP
,/,
buried/VBN
beneath/IN
a/DT
180-foot-tall/JJ
granite/NN
obelisk/NN
,/,
did/VBD
n't/RB
seem/VB
right/JJ
for/IN
an/DT
ad/NN
either/RB
./.
The/DT
oil/NN
magnate/NN
,/,
who/WP
spent/VBD
his/PRP$
later/JJ
years/NNS
passing/VBG
out/IN
dimes/NNS
to/TO
counter/VB
his/PRP$
penny-pinching/JJ
image/NN
,/,
``/``
is/VBZ
n't/RB
terribly/RB
amusing/JJ
,/,
''/''
says/VBZ
Barry/NNP
Olson/NNP
,/,
creative/JJ
director/NN
at/IN
Innis-Maggiore-Olson/NNP
,/,
Canton/NNP
,/,
Ohio/NNP
,/,
which/WDT
is/VBZ
producing/VBG
the/DT
ads/NNS
./.
But/CC
there/EX
are/VBP
plenty/RB
of/IN
other/JJ
promising/JJ
prospects/NNS
at/IN
Lake/NNP
View/NNP
,/,
promoters/NNS
believe/VBP
:/:
Ernest/NNP
Ball/NNP
,/,
for/IN
instance/NN
,/,
who/WP
wrote/VBD
``/``
When/WRB
Irish/JJ
Eyes/NNS
are/VBP
Smiling/VBG
,/,
''/''
and/CC
Garrett/NNP
Morgan/NNP
,/,
the/DT
inventor/NN
of/IN
the/DT
gas/NN
mask/NN
and/CC
the/DT
tri-colored/JJ
traffic/NN
light/NN
./.
Euro/NNP
Disneyland/NNP
shares/NNS
made/VBD
a/DT
debut/NN
like/IN
Snow/NNP
White/NNP
yesterday/NN
while/IN
most/JJS
of/IN
the/DT
London/NNP
stock/NN
market/NN
looked/VBD
like/IN
it/PRP
had/VBD
eaten/VBN
the/DT
Evil/NNP
Queen/NNP
's/POS
poisoned/VBN
apple/NN
./.
In/IN
its/PRP$
first/JJ
day/NN
of/IN
when-issued/JJ
trading/NN
here/RB
,/,
Euro/NNP
Disney/NNP
soared/VBD
like/IN
Dumbo/NNP
to/TO
close/VB
at/IN
814/CD
pence/NN
$/$
13.05/CD
15/CD
%/NN
from/IN
its/PRP$
707-pence/JJ
offering/VBG
price/NN
./.
The/DT
overall/JJ
London/NNP
market/NN
,/,
following/VBG
Wall/NNP
Street/NNP
's/POS
early/JJ
nosedive/NN
,/,
took/VBD
a/DT
late/JJ
beating/NN
./.
The/DT
Financial/NNP
Times-Stock/NNP
Exchange/NNP
100-Share/NNP
Index/NNP
plummeted/VBD
40.4/CD
points/NNS
to/TO
close/VB
at/IN
2149.3/CD
./.
Traders/NNS
credited/VBD
Euro/NNP
Disney/NNP
's/POS
share/NN
performance/NN
to/TO
the/DT
tremendous/JJ
hyping/NN
of/IN
the/DT
project/NN
that/IN
the/DT
shares/NNS
are/VBP
destined/VBN
to/TO
help/VB
finance/NN
:/:
Walt/NNP
Disney/NNP
Co./NNP
's/POS
4,800-acre/JJ
theme/NN
park/NN
20/CD
miles/NNS
east/JJ
of/IN
Paris/NNP
./.
The/DT
park/NN
is/VBZ
slated/VBN
to/TO
open/VB
in/IN
1992/CD
./.
``/``
The/DT
issue/NN
was/VBD
very/RB
well-received/JJ
--/:
Disney/NNP
is/VBZ
such/JJ
a/DT
well-known/NN
,/,
you/PRP
can/MD
say/VB
world-wide/JJ
,/,
name/NN
,/,
''/''
said/VBD
Vernon/NNP
Dempsey/NNP
,/,
head/NN
trader/NN
of/IN
European/JJ
equities/NNS
at/IN
Kleinwort/NNP
Benson/NNP
Ltd./NNP
,/,
which/WDT
is/VBZ
making/VBG
a/DT
market/NN
in/IN
the/DT
issue/NN
./.
Mr./NNP
Dempsey/NNP
estimated/VBD
that/IN
the/DT
issue/NN
's/POS
London/NNP
debut/NN
was/VBD
accompanied/VBN
by/IN
``/``
very/RB
,/,
very/RB
heavy/JJ
turnover/NN
--/:
between/IN
five/CD
million/CD
and/CC
six/CD
million/CD
shares/NNS
./.
''/''
Most/JJS
of/IN
the/DT
buying/NN
was/VBD
institutional/JJ
,/,
he/PRP
added/VBD
./.
Official/JJ
trading/NN
in/IN
the/DT
shares/NNS
will/MD
start/VB
in/IN
London/NNP
,/,
Paris/NNP
and/CC
Brussels/NNP
on/IN
Nov./NNP
6/CD
,/,
when/WRB
the/DT
French-franc/NN
denominated/VBN
offering/NN
,/,
valued/VBN
at/IN
the/DT
equivalent/NN
of/IN
nearly/RB
$/$
1/CD
billion/CD
,/,
comes/VBZ
to/TO
market/NN
in/IN
the/DT
European/NNP
Community/NNP
./.
U.S./NNP
investors/NNS
will/MD
be/VB
permitted/VBN
to/TO
buy/VB
the/DT
shares/NNS
from/IN
EC/NNP
investors/NNS
90/CD
days/NNS
later/RB
./.
Because/IN
of/IN
the/DT
interest/NN
connected/VBN
with/IN
the/DT
issue/NN
,/,
the/DT
London/NNP
exchange/NN
took/VBD
the/DT
unusual/JJ
step/NN
of/IN
letting/VBG
traders/NNS
establish/VB
an/DT
officially/RB
sanctioned/VBN
when-issued/JJ
market/NN
./.
A/DT
volatile/JJ
,/,
unofficial/JJ
``/``
gray/JJ
''/''
market/NN
in/IN
the/DT
shares/NNS
has/VBZ
been/VBN
operating/VBG
in/IN
Paris/NNP
for/IN
about/IN
two/CD
weeks/NNS
./.
In/IN
contrast/NN
to/TO
the/DT
London/NNP
performance/NN
,/,
Euro/NNP
Disney/NNP
there/RB
closed/VBD
down/IN
three/CD
francs/NNS
yesterday/NN
,/,
at/IN
79/CD
1\/2/CD
francs/NNS
$/$
12.66/CD
bid/NN
,/,
but/CC
still/RB
about/IN
10/CD
%/NN
over/IN
the/DT
72-franc/JJ
offering/NN
price/NN
./.
``/``
A/DT
lot/NN
of/IN
people/NNS
are/VBP
getting/VBG
hurt/NN
on/IN
this/DT
wicked/JJ
whipsawing/NN
,/,
''/''
cautioned/VBD
Alistair/NNP
Cuddeford/NNP
,/,
a/DT
London-based/JJ
Salomon/NNP
Brothers/NNPS
International/NNP
Ltd./NNP
trader/NN
who/WP
makes/VBZ
a/DT
market/NN
in/IN
franc-denominated/JJ
Euro/NNP
Disney/NNP
shares/NNS
./.
``/``
There/EX
should/MD
be/VB
no/DT
great/JJ
rush/NN
for/IN
investors/NNS
to/TO
buy/VB
this/DT
./.
A/DT
lot/NN
of/IN
big/JJ
European/JJ
banks/NNS
,/,
mostly/RB
French/JJ
,/,
and/CC
Swiss/JJ
arb/NN
accounts/NNS
have/VBP
been/VBN
buying/VBG
the/DT
stock/NN
just/RB
to/TO
flip/VB
it/PRP
''/''
for/IN
a/DT
quick/JJ
profit/NN
,/,
he/PRP
said/VBD
./.
Albert/NNP
Fried/NNP
Jr./NNP
,/,
a/DT
59-year-old/JJ
director/NN
and/CC
holder/NN
of/IN
a/DT
9.5/CD
%/NN
stake/NN
in/IN
the/DT
company/NN
,/,
was/VBD
named/VBN
chairman/NN
of/IN
this/DT
maker/NN
of/IN
products/NNS
for/IN
the/DT
construction/NN
equipment/NN
,/,
material/NN
handling/NN
and/CC
railroad/NN
industries/NNS
./.
He/PRP
succeeds/VBZ
L.L./NNP
White/NNP
Jr./NNP
,/,
62/CD
,/,
who/WP
resigned/VBD
but/CC
continues/VBZ
as/IN
a/DT
director/NN
./.
Mr./NNP
Fried/NNP
also/RB
is/VBZ
the/DT
managing/VBG
partner/NN
of/IN
Albert/NNP
Fried/NNP
&/CC
Co/NNP
./.
Ford/NNP
Motor/NNP
Co./NNP
intensified/VBD
its/PRP$
battle/NN
with/IN
General/NNP
Motors/NNPS
Corp./NNP
over/IN
Jaguar/NNP
PLC/NNP
by/IN
saying/VBG
it/PRP
is/VBZ
prepared/VBN
to/TO
make/VB
a/DT
bid/NN
for/IN
all/DT
of/IN
the/DT
British/JJ
auto/NN
maker/NN
when/WRB
restrictions/NNS
on/IN
its/PRP$
shareholding/NN
are/VBP
lifted/VBN
./.
The/DT
statement/NN
was/VBD
part/NN
of/IN
a/DT
Ford/NNP
filing/NN
with/IN
the/DT
U.S./NNP
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
./.
Ford/NNP
did/VBD
n't/RB
say/VB
how/WRB
much/JJ
it/PRP
might/MD
offer/VB
for/IN
Jaguar/NNP
,/,
or/CC
when/WRB
./.
The/DT
British/JJ
government/NN
currently/RB
forbids/VBZ
any/DT
outside/JJ
investor/NN
from/IN
holding/VBG
more/RBR
than/IN
15/CD
%/NN
of/IN
the/DT
company/NN
's/POS
shares/NNS
without/IN
permission/NN
until/IN
Dec./NNP
31/CD
,/,
But/CC
with/IN
its/PRP$
stake/NN
in/IN
Jaguar/NNP
,/,
which/WDT
it/PRP
raised/VBD
yesterday/NN
to/TO
11.95/CD
%/NN
,/,
Ford/NNP
could/MD
convene/VB
a/DT
special/JJ
Jaguar/NNP
shareholders/NNS
'/POS
meeting/NN
and/CC
urge/VB
holders/NNS
to/TO
vote/VB
to/TO
drop/VB
the/DT
restriction/NN
sooner/RBR
./.
A/DT
successful/JJ
vote/NN
would/MD
put/VB
pressure/NN
on/IN
the/DT
British/JJ
government/NN
to/TO
lift/VB
the/DT
restriction/NN
./.
``/``
We/PRP
have/VBP
not/RB
made/VBN
that/DT
decision/NN
''/''
to/TO
seek/VB
a/DT
Jaguar/NNP
special/JJ
shareholders/NNS
'/POS
meeting/NN
,/,
said/VBD
Martyn/NNP
Watkins/NNP
,/,
a/DT
Ford/NNP
spokesman/NN
in/IN
London/NNP
./.
He/PRP
emphasized/VBD
that/IN
the/DT
car/NN
maker/NN
only/RB
would/MD
bid/VB
for/IN
all/DT
of/IN
Jaguar/NNP
under/IN
the/DT
right/JJ
circumstances/NNS
,/,
and/CC
said/VBD
``/``
those/DT
circumstances/NNS
are/VBP
n't/RB
right/JJ
or/CC
possible/JJ
at/IN
the/DT
moment/NN
./.
''/''
Last/JJ
month/NN
,/,
Ford/NNP
announced/VBD
plans/NNS
to/TO
acquire/VB
as/RB
much/RB
as/IN
15/CD
%/NN
of/IN
Jaguar/NNP
./.
Since/IN
then/RB
,/,
Jaguar/NNP
officials/NNS
have/VBP
confirmed/VBN
that/IN
they/PRP
are/VBP
discussing/VBG
an/DT
alliance/NN
with/IN
GM/NNP
and/CC
said/VBD
last/JJ
week/NN
that/IN
they/PRP
hoped/VBD
to/TO
reach/VB
an/DT
agreement/NN
within/IN
a/DT
month/NN
./.
Analysts/NNS
have/VBP
been/VBN
expecting/VBG
a/DT
GM-Jaguar/JJ
pact/NN
that/WDT
would/MD
give/VB
the/DT
U.S./NNP
car/NN
maker/NN
an/DT
eventual/JJ
30/CD
%/NN
stake/NN
in/IN
the/DT
British/JJ
company/NN
and/CC
create/VB
joint/JJ
ventures/NNS
that/WDT
would/MD
produce/VB
an/DT
executive-model/JJ
range/NN
of/IN
cars/NNS
./.
But/CC
the/DT
specter/NN
of/IN
Ford/NNP
eventually/RB
launching/VBG
a/DT
full-fledged/JJ
bid/NN
could/MD
unravel/VB
the/DT
GM-Jaguar/JJ
talks/NNS
./.
Jaguar/NNP
seems/VBZ
to/TO
be/VB
losing/VBG
interest/NN
in/IN
giving/VBG
GM/NNP
a/DT
minority/NN
stake/NN
,/,
said/VBD
one/CD
individual/NN
close/JJ
to/TO
the/DT
talks/NNS
,/,
adding/VBG
,/,
``/``
It/PRP
would/MD
n't/RB
surprise/VB
me/PRP
if/IN
{/(
Jaguar/NNP
executives/NNS
what/WP
the/DT
color/NN
of/IN
that/DT
Ford/NNP
bid/NN
first/JJ
./.
He/PRP
predicted/VBD
Ford/NNP
officials/NNS
will/MD
meet/VB
with/IN
Jaguar/NNP
executives/NNS
in/IN
the/DT
next/JJ
week/NN
to/TO
outline/VB
their/PRP$
proposed/VBN
offer/NN
./.
Sir/NNP
John/NNP
Egan/NNP
,/,
Jaguar/NNP
's/POS
chairman/NN
,/,
so/RB
far/RB
has/VBZ
refused/VBN
to/TO
meet/VB
with/IN
Ford/NNP
officials/NNS
,/,
but/CC
he/PRP
is/VBZ
believed/VBN
to/TO
be/VB
willing/JJ
to/TO
consider/VB
a/DT
specific/JJ
bid/NN
proposal/NN
./.
As/IN
for/IN
GM/NNP
,/,
its/PRP$
``/``
fallback/NN
position/NN
has/VBZ
to/TO
be/VB
a/DT
full/JJ
bid/NN
itself/PRP
,/,
''/''
said/VBD
Stephen/NNP
Reitman/NNP
,/,
European/JJ
auto-industry/NN
analyst/NN
at/IN
London/NNP
brokers/NNS
UBS-Phillips/NNP
&/CC
Drew/NNP
./.
A/DT
Ford/NNP
takeover/NN
of/IN
Jaguar/NNP
would/MD
``/``
have/VB
such/JJ
implications/NNS
for/IN
the/DT
balance/NN
of/IN
power/NN
in/IN
the/DT
1990s/CD
that/IN
General/NNP
Motors/NNPS
ca/MD
n't/RB
afford/VB
to/TO
step/VB
aside/RB
./.
They/PRP
will/MD
have/VB
to/TO
throw/VB
their/PRP$
hat/NN
in/IN
the/DT
ring/NN
./.
''/''
A/DT
GM/NNP
spokesman/NN
yesterday/NN
reiterated/VBD
the/DT
company/NN
's/POS
interest/NN
in/IN
acquiring/VBG
a/DT
minority/NN
stake/NN
to/TO
help/VB
Jaguar/NNP
remain/VB
independent/JJ
./.
A/DT
pitched/JJ
battle/NN
could/MD
mean/VB
Jaguar/NNP
would/MD
fetch/VB
#/#
10/CD
$/$
16.02/CD
a/DT
share/NN
,/,
or/CC
about/IN
#/#
1.8/CD
billion/CD
$/$
2.88/CD
billion/CD
several/JJ
analysts/NNS
believe/VBP
./.
The/DT
prospect/NN
of/IN
such/PDT
a/DT
takeover/NN
fight/NN
has/VBZ
sent/VBN
Jaguar/NNP
shares/NNS
soaring/VBG
in/IN
recent/JJ
weeks/NNS
./.
U.S./NNP
takeover-stock/NN
speculators/NNS
now/RB
own/VBP
an/DT
estimated/VBN
25/CD
%/NN
of/IN
Jaguar/NNP
shares/NNS
./.
In/IN
a/DT
declining/VBG
London/JJ
stock/NN
market/NN
yesterday/NN
,/,
Jaguar/NNP
shares/NNS
were/VBD
down/IN
four/CD
pence/NN
from/IN
Monday/NNP
in/IN
late/JJ
trading/NN
,/,
at/IN
694/CD
pence/NN
$/$
11.11/CD
a/DT
share/NN
./.
In/IN
the/DT
U.S./NNP
,/,
Jaguar/NNP
's/POS
American/JJ
depositary/NN
receipts/NNS
rose/VBD
12.5/CD
cents/NNS
in/IN
over-the-counter/JJ
trading/NN
,/,
to/TO
$/$
11.25/CD
./.
Both/DT
Ford/NNP
and/CC
GM/NNP
badly/RB
need/VBP
a/DT
luxury/NN
brand/NN
to/TO
combat/VB
new/JJ
competition/NN
from/IN
the/DT
Japanese/NNP
in/IN
the/DT
European/JJ
and/CC
U.S./NNP
markets/NNS
./.
And/CC
financially/RB
strapped/VBN
Jaguar/NNP
has/VBZ
spent/VBN
over/IN
a/DT
year/NN
looking/VBG
for/IN
a/DT
rich/JJ
uncle/NN
to/TO
provide/VB
cash/NN
and/CC
technological/JJ
know-how/NN
./.
The/DT
company/NN
has/VBZ
expressed/VBN
a/DT
preference/NN
for/IN
GM/NNP
over/IN
Ford/NNP
because/IN
GM/NNP
has/VBZ
promised/VBN
it/PRP
would/MD
keep/VB
Jaguar/NNP
independent/JJ
./.
Ford/NNP
's/POS
need/NN
to/TO
acquire/VB
some/DT
or/CC
all/DT
of/IN
Jaguar/NNP
became/VBD
more/RBR
acute/JJ
last/JJ
week/NN
when/WRB
it/PRP
abandoned/VBD
a/DT
four-year/JJ
effort/NN
to/TO
market/NN
its/PRP$
German-built/JJ
Merkur/NNP
Scorpio/NNP
sedan/NN
as/IN
a/DT
European/JJ
luxury/NN
import/NN
in/IN
the/DT
U.S/NNP
./.
Then/RB
,/,
last/JJ
Friday/NNP
,/,
Ford/NNP
's/POS
talks/NNS
about/IN
a/DT
possible/JJ
alliance/NN
with/IN
Saab-Scania/NNP
AB/NNP
of/IN
Sweden/NNP
collapsed/VBD
./.
GM/NNP
's/POS
interest/NN
in/IN
Jaguar/NNP
reflects/VBZ
a/DT
desire/NN
to/TO
help/VB
diversify/VB
the/DT
U.S./NNP
company/NN
's/POS
products/NNS
in/IN
the/DT
growing/VBG
luxury-car/NN
segment/NN
of/IN
the/DT
market/NN
./.
Its/PRP$
Opel/NNP
line/NN
has/VBZ
a/DT
solid/JJ
image/NN
and/CC
a/DT
recent/JJ
string/NN
of/IN
highly/RB
successful/JJ
new/JJ
models/NNS
,/,
but/CC
it/PRP
lacks/VBZ
Jaguar/NNP
's/POS
cachet/NN
./.
GM/NNP
officials/NNS
also/RB
see/VBP
a/DT
lot/NN
of/IN
potential/NN
in/IN
marrying/VBG
Jaguar/NNP
's/POS
cars/NNS
to/TO
the/DT
technological/JJ
know-how/NN
of/IN
Group/NNP
Lotus/NNP
PLC/NNP
,/,
a/DT
British/JJ
engineering/NN
and/CC
specialty/NN
car/NN
maker/NN
GM/NNP
bought/VBD
in/IN
1986/CD
./.
Texaco/NNP
Inc./NNP
reported/VBD
an/DT
11/CD
%/NN
increase/NN
in/IN
third-quarter/JJ
earnings/NNS
,/,
which/WDT
it/PRP
attributed/VBD
partly/RB
to/TO
the/DT
company/NN
's/POS
massive/JJ
restructuring/VBG
after/IN
it/PRP
emerged/VBD
from/IN
bankruptcy-law/NN
proceedings/NNS
18/CD
months/NNS
ago/IN
./.
Sun/NNP
Co./NNP
also/RB
reported/VBD
higher/JJR
earnings/NNS
./.
Meanwhile/RB
,/,
like/IN
many/JJ
other/JJ
oil/NN
companies/NNS
hurt/VBN
by/IN
less-profitable/JJ
downstream/JJ
businesses/NNS
,/,
Mobil/NNP
Corp./NNP
,/,
Shell/NNP
Oil/NNP
Co./NNP
and/CC
Chevron/NNP
Corp./NNP
reported/VBD
lower/JJR
quarterly/JJ
earnings/NNS
./.
Texaco/NNP
Texaco/NNP
's/POS
exploration/NN
and/CC
production/NN
earnings/NNS
improved/VBD
as/IN
a/DT
result/NN
of/IN
its/PRP$
streamlining/NN
of/IN
those/DT
operations/NNS
as/IN
it/PRP
sold/VBD
many/JJ
of/IN
its/PRP$
marginal/JJ
producing/VBG
properties/NNS
over/IN
the/DT
past/JJ
18/CD
months/NNS
./.
An/DT
increase/NN
in/IN
production/NN
at/IN
some/DT
major/JJ
oil/NN
fields/NNS
in/IN
the/DT
North/NNP
Sea/NNP
,/,
which/WDT
had/VBD
been/VBN
knocked/VBN
out/IN
by/IN
an/DT
explosion/NN
in/IN
July/NNP
1988/CD
,/,
also/RB
aided/VBN
results/NNS
./.
The/DT
sale/NN
of/IN
a/DT
portion/NN
of/IN
refining/VBG
and/CC
marketing/NN
operations/NNS
to/TO
Saudi/NNP
Arabia/NNP
helped/VBD
alleviate/VB
the/DT
decline/NN
in/IN
earnings/NNS
from/IN
that/DT
business/NN
./.
``/``
The/DT
company/NN
has/VBZ
been/VBN
completely/RB
revamped/VBN
,/,
''/''
said/VBD
Frank/NNP
Knuettel/NNP
,/,
analyst/NN
for/IN
Prudential-Bache/NNP
Securities/NNPS
Inc/NNP
./.
Third-quarter/JJ
net/JJ
income/NN
at/IN
Texaco/NNP
rose/VBD
to/TO
$/$
305/CD
million/CD
from/IN
$/$
274/CD
million/CD
last/JJ
year/NN
./.
Revenue/NN
declined/VBD
3.4/CD
%/NN
,/,
to/TO
$/$
8.4/CD
billion/CD
from/IN
$/$
8.7/CD
billion/CD
./.
Per-share/JJ
earnings/NNS
declined/VBD
to/TO
$/$
1.10/CD
a/DT
share/NN
from/IN
$/$
1.12/CD
a/DT
share/NN
,/,
largely/RB
because/IN
of/IN
21/CD
million/CD
additional/JJ
shares/NNS
issued/VBN
to/TO
retire/VB
$/$
1/CD
billion/CD
of/IN
debt/NN
./.
Per-share/JJ
earnings/NNS
also/RB
shrank/VBD
because/IN
of/IN
dividends/NNS
on/IN
a/DT
new/JJ
series/NN
of/IN
preferred/VBN
stock/NN
./.
Sun/NNP
Sun/NNP
Co./NNP
's/POS
net/JJ
income/NN
climbed/VBD
18/CD
%/NN
to/TO
$/$
85/CD
million/CD
,/,
or/CC
80/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
72/CD
million/CD
,/,
or/CC
67/CD
cents/NNS
a/DT
share/NN
./.
Revenue/NN
increased/VBD
11/CD
%/NN
,/,
to/TO
$/$
2.73/CD
billion/CD
from/IN
$/$
2.46/CD
billion/CD
./.
Sun/NNP
said/VBD
some/DT
of/IN
the/DT
growth/NN
reflects/VBZ
higher/JJR
earnings/NNS
in/IN
the/DT
oil/NN
sands/NNS
operation/NN
of/IN
Suncor/NNP
,/,
a/DT
majority-owned/JJ
Canadian/JJ
subsidiary/NN
./.
Chairman/NNP
Robert/NNP
McClements/NNP
Jr./NNP
said/VBD
the/DT
synthetic/JJ
crude/JJ
oil/NN
production/NN
from/IN
the/DT
facility/NN
rose/VBD
even/RB
as/IN
the/DT
price/NN
for/IN
that/DT
oil/NN
increased/VBD
./.
Overseas/JJ
exploration/NN
and/CC
production/NN
results/NNS
also/RB
improved/VBD
because/IN
of/IN
additional/JJ
output/NN
from/IN
the/DT
North/NNP
Sea/NNP
Magnus/NNP
Field/NNP
,/,
a/DT
portion/NN
of/IN
which/WDT
was/VBD
acquired/VBN
by/IN
Sun/NNP
earlier/RBR
this/DT
year/NN
./.
Results/NNS
declined/VBD
,/,
however/RB
,/,
in/IN
Sun/NNP
's/POS
refining/NN
and/CC
marketing/NN
and/CC
coal/NN
businesses/NNS
./.
Shell/NNP
Oil/NNP
Profits/NNPS
of/IN
Shell/NNP
,/,
a/DT
subsidiary/NN
of/IN
the/DT
Royal/NNP
Dutch\/Shell/NNP
Group/NNP
,/,
tumbled/VBD
$/$
24/CD
million/CD
,/,
or/CC
6.6/CD
%/NN
,/,
to/TO
$/$
340/CD
million/CD
,/,
despite/IN
a/DT
gain/NN
of/IN
$/$
30/CD
million/CD
from/IN
an/DT
insurance/NN
settlement/NN
./.
President/NNP
Frank/NNP
Richardson/NNP
attributed/VBD
the/DT
decline/NN
to/TO
lower/JJR
natural/JJ
gas/NN
prices/NNS
,/,
which/WDT
countered/VBD
higher/JJR
earnings/NNS
from/IN
the/DT
crude/JJ
oil/NN
sector/NN
of/IN
Shell/NNP
's/POS
exploration/NN
and/CC
production/NN
operation/NN
./.
Shaving/VBG
away/RB
some/DT
of/IN
the/DT
gain/NN
in/IN
that/DT
unit/NN
was/VBD
a/DT
decline/NN
in/IN
U.S./NNP
oil/NN
production/NN
to/TO
502,000/CD
barrels/NNS
of/IN
oil/NN
a/DT
day/NN
during/IN
the/DT
quarter/NN
from/IN
527,000/CD
barrels/NNS
a/DT
day/NN
last/JJ
year/NN
./.
Shell/NNP
's/POS
chemical/NN
earnings/NNS
fell/VBD
by/IN
$/$
67/CD
million/CD
,/,
to/TO
$/$
137/CD
million/CD
,/,
reflecting/VBG
lower/JJR
margins/NNS
and/CC
less/JJR
demand/NN
for/IN
commodity/NN
chemicals/NNS
./.
Mobil/NNP
Net/JJ
income/NN
at/IN
Mobil/NNP
Corp./NNP
slipped/VBD
4.5/CD
%/NN
to/TO
$/$
532/CD
million/CD
,/,
or/CC
$/$
1.30/CD
a/DT
share/NN
,/,
from/IN
$/$
557/CD
million/CD
,/,
or/CC
$/$
1.36/CD
a/DT
share/NN
./.
Revenue/NN
declined/VBD
$/$
518/CD
million/CD
,/,
to/TO
$/$
13.63/CD
billion/CD
./.
Earnings/NNS
included/VBD
a/DT
one-time/JJ
gain/NN
of/IN
$/$
192/CD
million/CD
on/IN
a/DT
property/NN
transaction/NN
in/IN
Hong/NNP
Kong/NNP
./.
Exploration/NN
and/CC
production/NN
profits/NNS
slumped/VBD
$/$
40/CD
million/CD
due/JJ
to/TO
a/DT
provision/NN
for/IN
restructuring/VBG
costs/NNS
./.
The/DT
restructuring/VBG
will/MD
take/VB
place/NN
over/IN
a/DT
two-year/JJ
period/NN
and/CC
will/MD
involve/VB
the/DT
transfer/NN
and/CC
layoff/NN
of/IN
employees/NNS
in/IN
U.S./NNP
operations/NNS
to/TO
reduce/VB
costs/NNS
and/CC
focus/VB
efforts/NNS
in/IN
other/JJ
areas/NNS
./.
Last/JJ
year/NN
,/,
third-quarter/JJ
earnings/NNS
included/VBD
a/DT
$/$
157/CD
million/CD
gain/NN
from/IN
foreign/JJ
tax/NN
rate/NN
changes/NNS
and/CC
a/DT
loss/NN
from/IN
a/DT
$/$
65/CD
million/CD
write-off/NN
of/IN
reserves/NNS
./.
Chevron/NNP
Chevron/NNP
's/POS
net/JJ
income/NN
fell/VBD
0.7/CD
%/NN
,/,
to/TO
$/$
417/CD
million/CD
,/,
or/CC
$/$
1.22/CD
a/DT
share/NN
,/,
from/IN
$/$
420/CD
million/CD
,/,
or/CC
$/$
1.23/CD
a/DT
share/NN
./.
Results/NNS
included/VBD
a/DT
$/$
37/CD
million/CD
gain/NN
from/IN
the/DT
sale/NN
of/IN
rights/NNS
from/IN
Chevron/NNP
's/POS
investment/NN
in/IN
Amax/NNP
Inc./NNP
,/,
and/CC
a/DT
loss/NN
of/IN
$/$
30/CD
million/CD
from/IN
the/DT
sale/NN
of/IN
California/NNP
oil/NN
and/CC
gas/NN
properties/NNS
./.
Revenue/NN
rose/VBD
11/CD
%/NN
,/,
to/TO
$/$
8/CD
billion/CD
from/IN
$/$
7.2/CD
billion/CD
./.
Chevron/NNP
said/VBD
higher/JJR
crude/JJ
oil/NN

prices/NNS
boosted/VBD
profits/NNS
from/IN
production/NN
operations/NNS
,/,
but/CC
margins/NNS
in/IN
refining/NN
and/CC
marketing/NN
declined/VBD
./.
Profits/NNS
from/IN
U.S./NNP
exploration/NN
and/CC
production/NN
operations/NNS
totaled/VBD
$/$
58/CD
million/CD
,/,
after/IN
the/DT
property/NN
sale/NN
loss/NN
,/,
compared/VBN
with/IN
a/DT
year-earlier/JJ
$/$
44/CD
million/CD
loss/NN
that/WDT
included/VBD
a/DT
$/$
16/CD
million/CD
reorganization/NN
charge/NN
./.
Refining/NN
and/CC
marketing/NN
operations/NNS
earned/VBD
$/$
130/CD
million/CD
in/IN
the/DT
quarter/NN
this/DT
year/NN
,/,
compared/VBN
with/IN
earnings/NNS
of/IN
$/$
186/CD
million/CD
a/DT
year/NN
earlier/RBR
that/IN
included/VBN
$/$
18/CD
million/CD
in/IN
charges/NNS
for/IN
environmental/JJ
programs/NNS
./.
Foreign/JJ
earnings/NNS
fell/VBD
to/TO
$/$
180/CD
million/CD
from/IN
$/$
182/CD
million/CD
that/WDT
included/VBD
a/DT
$/$
48/CD
million/CD
gain/NN
from/IN
lower/JJR
Canadian/JJ
and/CC
Australian/JJ
taxes/NNS
./.
Chemical/NN
profits/NNS
fell/VBD
to/TO
$/$
78/CD
million/CD
from/IN
$/$
98/CD
million/CD
./.
Jeff/NNP
Rowe/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Asarco/NNP
Inc./NNP
,/,
continuing/VBG
its/PRP$
effort/NN
to/TO
refocus/VB
its/PRP$
business/NN
,/,
ended/VBD
its/PRP$
involvement/NN
in/IN
asbestos/NN
mining/NN
in/IN
the/DT
third/JJ
quarter/NN
and/CC
said/VBD
it/PRP
would/MD
stop/VB
mining/VBG
and/CC
selling/VBG
coal/NN
by/IN
year/NN
end/NN
./.
The/DT
mining/NN
,/,
metal/NN
and/CC
specialty-chemical/NN
concern/NN
said/VBD
combined/VBN
revenue/NN
for/IN
asbestos/NN
and/CC
coal/NN
was/VBD
about/IN
$/$
40/CD
million/CD
of/IN
the/DT
company/NN
's/POS
total/JJ
revenue/NN
in/IN
1988/CD
of/IN
$/$
1.98/CD
billion/CD
./.
Richard/NNP
de/NNP
J./NNP
Osborne/NNP
,/,
chairman/NN
,/,
president/NN
and/CC
chief/NN
executive/NN
officer/NN
,/,
said/VBD
the/DT
company/NN
's/POS
``/``
decisions/NNS
to/TO
get/VB
out/IN
of/IN
asbestos/NN
and/CC
high-sulfur/JJ
coal/NN
continue/VBP
the/DT
process/NN
of/IN
simplifying/VBG
and/CC
focusing/VBG
the/DT
company/NN
in/IN
areas/NNS
with/IN
a/DT
better/JJR
future/NN
./.
''/''
Asarco/NNP
also/RB
reported/VBD
third-quarter/JJ
net/JJ
income/NN
rose/VBD
14/CD
%/NN
,/,
to/TO
$/$
52.7/CD
million/CD
,/,
or/CC
$/$
1.25/CD
a/DT
share/NN
,/,
from/IN
a/DT
restated/VBN
$/$
46.2/CD
million/CD
,/,
or/CC
$/$
1.10/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Asarco/NNP
said/VBD
the/DT
gain/NN
reflected/VBD
continued/VBN
strength/NN
in/IN
prices/NNS
for/IN
refined/VBN
copper/NN
,/,
lead/NN
and/CC
zinc/NN
,/,
and/CC
higher/JJR
equity/NN
earnings/NNS
in/IN
Mexico/NNP
Desarrollo/NNP
Industrial/NNP
Minero/NNP
S.A./NNP
,/,
a/DT
Mexican/JJ
mining/NN
company/NN
in/IN
which/WDT
Asarco/NNP
has/VBZ
a/DT
34/CD
%/NN
stake/NN
./.
The/DT
1988/CD
results/NNS
were/VBD
restated/VBN
for/IN
accounting-rules/JJ
changes/NNS
./.
Sales/NNS
rose/VBD
4.5/CD
%/NN
to/TO
$/$
522.3/CD
million/CD
from/IN
$/$
499.4/CD
million/CD
./.
In/IN
August/NNP
,/,
Asarco/NNP
,/,
through/IN
its/PRP$
Lac/NNP
d'Amiante/NNP
du/NNP
Quebec/NNP
subsidiary/NN
,/,
sold/VBD
its/PRP$
remaining/VBG
one-third/JJ
interest/NN
in/IN
an/DT
asbestos/NN
mining/NN
limited/VBN
partnership/NN
in/IN
Canada/NNP
for/IN
$/$
11.7/CD
million/CD
./.
Asarco/NNP
said/VBD
it/PRP
plans/VBZ
to/TO
shut/VB
down/IN
or/CC
sell/VB
its/PRP$
Rapatee/NNP
coal/NN
mine/NN
and/CC
will/MD
end/VB
its/PRP$
involvement/NN
in/IN
southern/JJ
Illinois/NNP
strip/NN
mining/NN
./.
The/DT
company/NN
said/VBD
that/IN
it/PRP
is/VBZ
discussing/VBG
a/DT
management-employee/NN
buy-out/NN
of/IN
the/DT
facility/NN
,/,
but/CC
that/IN
it/PRP
would/MD
stop/VB
mining/VBG
and/CC
selling/VBG
coal/NN
at/IN
year/NN
end/NN
when/WRB
existing/VBG
sales/NNS
contracts/NNS
expire/VBP
,/,
regardless/RB
of/IN
the/DT
outcome/NN
of/IN
those/DT
talks/NNS
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Asarco/NNP
fell/VBD
$/$
1.375/CD
to/TO
close/VB
at/IN
$/$
31.75/CD
./.
Companies/NNS
listed/VBN
below/IN
reported/VBD
quarterly/JJ
profit/NN
substantially/RB
different/JJ
from/IN
the/DT
average/NN
of/IN
analysts/NNS
'/POS
estimates/NNS
./.
The/DT
companies/NNS
are/VBP
followed/VBN
by/IN
at/IN
least/JJS
three/CD
analysts/NNS
,/,
and/CC
had/VBD
a/DT
minimum/JJ
five-cent/JJ
change/NN
in/IN
actual/JJ
earnings/NNS
per/IN
share/NN
./.
Estimated/VBN
and/CC
actual/JJ
results/NNS
involving/VBG
losses/NNS
are/VBP
omitted/VBN
./.
The/DT
percent/NN
difference/NN
compares/VBZ
actual/JJ
profit/NN
with/IN
the/DT
30-day/JJ
estimate/NN
where/WRB
at/IN
least/JJS
three/CD
analysts/NNS
have/VBP
issues/NNS
forecasts/NNS
in/IN
the/DT
past/JJ
30/CD
days/NNS
./.
Otherwise/RB
,/,
actual/JJ
profit/NN
is/VBZ
compared/VBN
with/IN
the/DT
300-day/JJ
estimate/NN
./.
Source/NN
:/:
Zacks/NNP
Investment/NNP
Research/NNP
David/NNP
W./NNP
Lodge/NNP
was/VBD
elected/VBN
vice/NN
president/NN
and/CC
chief/NN
financial/JJ
officer/NN
,/,
effective/JJ
Nov./NNP
1/CD
./.
Mr./NNP
Lodge/NNP
,/,
48/CD
years/NNS
old/JJ
,/,
a/DT
former/JJ
finance/NN
executive/NN
at/IN
Singer/NNP
Sewing/NNP
Machine/NNP
Co./NNP
and/CC
Celanese/NNP
Corp./NNP
,/,
succeeds/VBZ
Francis/NNP
L./NNP
Brophy/NNP
,/,
64/CD
,/,
who/WP
plans/VBZ
to/TO
retire/VB
from/IN
the/DT
company/NN
next/IN
year/NN
./.
Carlos/NNP
A./NNP
Salvagni/NNP
,/,
vice/NN
president/NN
,/,
pharmaceutical/JJ
manufacturing/NN
,/,
will/MD
assume/VB
responsibility/NN
for/IN
manufacturing/NN
in/IN
Kalamazoo/NNP
,/,
Mich./NNP
,/,
effective/JJ
Nov./NNP
1/CD
./.
Mr./NNP
Salvagni/NNP
,/,
53/CD
years/NNS
old/JJ
,/,
succeeds/VBZ
John/NNP
C./NNP
Griffin/NNP
,/,
57/CD
,/,
who/WP
is/VBZ
retiring/VBG
as/RB
corporate/JJ
vice/NN
president/NN
of/IN
pharmaceutical/JJ
manufacturing/NN
./.
Upjohn/NNP
is/VBZ
a/DT
world-wide/JJ
provider/NN
of/IN
health-care/JJ
products/NNS
and/CC
services/NNS
,/,
seeds/NNS
and/CC
speciality/NN
chemicals/NNS
./.
This/DT
Brooklyn/NNP
,/,
N.Y./NNP
,/,
generic-drug/NN
maker/NN
announced/VBD
a/DT
5/CD
%/NN
stock/NN
dividend/NN
payable/JJ
Dec./NNP
15/CD
,/,
to/TO
holders/NNS
of/IN
record/NN
Nov./NNP
15/CD
./.
As/IN
of/IN
Sept./NNP
30/CD
,/,
Halsey/NNP
had/VBD
5.3/CD
million/CD
common/JJ
shares/NNS
outstanding/JJ
./.
Jay/NNP
Marcus/NNP
,/,
president/NN
,/,
said/VBD
the/DT
move/NN
``/``
reflects/VBZ
the/DT
confidence/NN
of/IN
our/PRP$
board/NN
and/CC
management/NN
in/IN
Halsey/NNP
's/POS
long-term/JJ
prospects/NNS
and/CC
our/PRP$
desire/NN
to/TO
provide/VB
our/PRP$
shareholders/NNS
with/IN
an/DT
attractive/JJ
return/NN
on/IN
their/PRP$
investment/NN
./.
''/''
In/IN
American/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Halsey/NNP
closed/VBD
at/IN
$/$
5.8125/CD
a/DT
share/NN
,/,
up/IN
6.25/CD
cents/NNS
./.
Walter/NNP
M./NNP
Brady/NNP
was/VBD
named/VBN
a/DT
senior/JJ
vice/NN
president/NN
of/IN
this/DT
insurer/NN
in/IN
the/DT
Canadian/JJ
head/NN
office/NN
./.
He/PRP
had/VBD
been/VBN
vice/NN
president/NN
in/IN
that/DT
office/NN
./.
John/NNP
B./NNP
Foy/NNP
was/VBD
named/VBN
senior/JJ
vice/NN
president/NN
and/CC
remains/VBZ
responsible/JJ
for/IN
the/DT
individual/JJ
policy/NN
services/NNS
department/NN
./.
Frank/NNP
J./NNP
Ollari/NNP
was/VBD
named/VBN
senior/JJ
vice/NN
president/NN
in/IN
charge/NN
of/IN
the/DT
mortgage/NN
finance/NN
department/NN
./.
He/PRP
had/VBD
been/VBN
vice/NN
president/NN
of/IN
the/DT
department/NN
,/,
which/WDT
was/VBD
formerly/RB
called/VBN
the/DT
real/JJ
estate/NN
department/NN
./.
Timothy/NNP
C./NNP
Brown/NNP
,/,
a/DT
vice/NN
president/NN
,/,
was/VBD
named/VBN
executive/JJ
vice/NN
president/NN
and/CC
a/DT
director/NN
of/IN
this/DT
lighting/NN
and/CC
specialty/NN
products/NNS
concern/NN
./.
In/IN
the/DT
director/NN
post/NN
,/,
Mr./NNP
Brown/NNP
,/,
38/CD
years/NNS
old/JJ
,/,
succeeds/VBZ
Joseph/NNP
W./NNP
Hibben/NNP
,/,
who/WP
retired/VBD
from/IN
the/DT
board/NN
in/IN
August/NNP
./.
C./NNP
Barr/NNP
Schuler/NNP
,/,
49/CD
,/,
vice/NN
president/NN
and/CC
chief/NN
financial/JJ
officer/NN
,/,
was/VBD
named/VBN
senior/JJ
vice/NN
president/NN
of/IN
corporate/JJ
development/NN
and/CC
acquisitions/NNS
,/,
a/DT
new/JJ
post/NN
./.
Phillip/NNP
J./NNP
Stuecker/NNP
,/,
37/CD
,/,
vice/NN
president/NN
,/,
secretary/NN
and/CC
treasurer/NN
,/,
was/VBD
named/VBN
vice/NN
president/NN
of/IN
finance/NN
and/CC
chief/NN
financial/JJ
officer/NN
./.
He/PRP
remains/VBZ
secretary/NN
./.
Ronald/NNP
B./NNP
Koenig/NNP
,/,
55/CD
years/NNS
old/JJ
,/,
was/VBD
named/VBN
a/DT
senior/JJ
managing/VBG
director/NN
of/IN
the/DT
Gruntal/NNP
&/CC
Co./NNP
brokerage/NN
subsidiary/NN
of/IN
this/DT
insurance/NN
and/CC
financial-services/JJ
firm/NN
./.
Mr./NNP
Koenig/NNP
will/MD
build/VB
the/DT
corporate-finance/JJ
and/CC
investment-banking/JJ
business/NN
of/IN
Gruntal/NNP
,/,
which/WDT
has/VBZ
primarily/RB
been/VBN
a/DT
retail-based/JJ
firm/NN
./.
He/PRP
was/VBD
chairman/NN
and/CC
co-chief/JJ
executive/JJ
officer/NN
of/IN
Ladenburg/NNP
,/,
Thalmann/NNP
&/CC
Co./NNP
until/IN
July/NNP
,/,
when/WRB
he/PRP
was/VBD
named/VBN
co-chairman/NN
of/IN
the/DT
investment-banking/JJ
firm/NN
along/IN
with/IN
Howard/NNP
L./NNP
Blum/NNP
Jr./NNP
,/,
who/WP
then/RB
became/VBD
the/DT
sole/JJ
chief/NN
executive/NN
./.
Yesterday/NN
,/,
Mr./NNP
Blum/NNP
,/,
41/CD
,/,
said/VBD
he/PRP
was/VBD
n't/RB
aware/JJ
of/IN
plans/NNS
at/IN
Ladenburg/NNP
to/TO
name/VB
a/DT
co-chairman/NN
to/TO
succeed/VB
Mr./NNP
Koenig/NNP
and/CC
said/VBD
the/DT
board/NN
would/MD
need/VB
to/TO
approve/VB
any/DT
appointments/NNS
or/CC
title/NN
changes/NNS
./.
Mr./NNP
Blum/NNP
added/VBD
he/PRP
was/VBD
n't/RB
surprised/VBN
Mr./NNP
Koenig/NNP
resigned/VBD
,/,
but/CC
his/PRP$
departure/NN
was/VBD
``/``
nothing/NN
that/IN
we/PRP
desired/VBD
or/CC
worked/VBD
for/IN
./.
''/''
Mr./NNP
Koenig/NNP
said/VBD
:/:
``/``
I/PRP
just/RB
got/VBD
a/DT
tremendous/JJ
offer/NN
from/IN
Gruntal/NNP
./.
''/''
MCI/NNP
Communications/NNPS
Corp./NNP
said/VBD
it/PRP
received/VBD
a/DT
$/$
12/CD
million/CD
contract/NN
to/TO
provide/VB
virtual/JJ
network/NN
services/NNS
to/TO
Woolworth/NNP
Corp./NNP
's/POS
5,600/CD
corporate/JJ
and/CC
retail/JJ
sites/NNS
in/IN
the/DT
The/DT
contract/NN
also/RB
provides/VBZ
for/IN
advanced/VBN
billing/NN
and/CC
network/NN
management/NN
services/NNS
./.
Woolworth/NNP
said/VBD
it/PRP
expects/VBZ
to/TO
expand/VB
usage/NN
of/IN
the/DT
MCI/NNP
services/NNS
as/IN
it/PRP
adds/VBZ
about/IN
6,000/CD
business/NN
locations/NNS
over/IN
the/DT
next/JJ
few/JJ
years/NNS
./.
The/DT
Philippine/JJ
merchandise/NN
trade/NN
deficit/NN
widened/VBD
to/TO
$/$
1.71/CD
billion/CD
during/IN
the/DT
first/JJ
eight/CD
months/NNS
of/IN
1989/CD
from/IN
$/$
807/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
Imports/NNS
continued/VBD
to/TO
outpace/VB
Philippine/JJ
exports/NNS
,/,
despite/IN
gains/NNS
in/IN
shipments/NNS
abroad/RB
,/,
the/DT
government/NN
National/NNP
Statistics/NNP
Office/NNP
said/VBD
./.
Exports/NNS
reached/VBD
$/$
5.12/CD
billion/CD
,/,
up/IN
from/IN
$/$
4.52/CD
billion/CD
a/DT
year/NN
earlier/RBR
,/,
while/IN
imports/NNS
rose/VBD
to/TO
$/$
6.81/CD
billion/CD
from/IN
$/$
5.33/CD
billion/CD
./.
The/DT
trade/NN
deficit/NN
in/IN
the/DT
first/JJ
eight/CD
months/NNS
is/VBZ
already/RB
wider/JJR
than/IN
the/DT
trade/NN
gap/NN
of/IN
$/$
1.09/CD
billion/CD
for/IN
all/DT
of/IN
1988/CD
./.
Analysts/NNS
expect/VBP
the/DT
trade/NN
gap/NN
for/IN
the/DT
year/NN
to/TO
surpass/VB
$/$
2/CD
billion/CD
as/IN
demand/NN
for/IN
capital/NN
equipment/NN
and/CC
raw/JJ
materials/NNS
continues/VBZ
to/TO
push/VB
imports/NNS
higher/JJR
./.
Birtcher/NNP
Corp./NNP
said/VBD
it/PRP
signed/VBD
a/DT
definitive/JJ
agreement/NN
with/IN
C.R./NNP
Bard/NNP
Inc./NNP
,/,
a/DT
Murray/NNP
Hill/NNP
,/,
N.J./NNP
,/,
maker/NN
of/IN
health-care/NN
products/NNS
,/,
for/IN
the/DT
purchase/NN
of/IN
the/DT
company/NN
's/POS
Bard\/EMS/NNP
Electrosurgery/NNP
division/NN
for/IN
about/IN
$/$
11/CD
million/CD
./.
Birtcher/NNP
,/,
a/DT
maker/NN
of/IN
electronic/JJ
medical/JJ
equipment/NN
,/,
said/VBD
the/DT
transaction/NN
is/VBZ
expected/VBN
to/TO
close/VB
on/IN
or/CC
before/IN
Nov./NNP
30/CD
./.
Bard\/EMS/NNP
had/VBD
1988/CD
sales/NNS
of/IN
about/IN
$/$
14/CD
million/CD
,/,
Birtcher/NNP
said/VBD
./.
WINSTON-SALEM/NNP
,/,
N.C./NNP
--/:
First/NNP
Wachovia/NNP
Corp./NNP
said/VBD
John/NNP
F./NNP
McNair/NNP
III/NNP
will/MD
retire/VB
as/IN
president/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
this/DT
regional/JJ
banking/NN
company/NN
's/POS
Wachovia/NNP
Corp./NNP
and/CC
Wachovia/NNP
Bank/NNP
&/CC
Trust/NNP
Co./NNP
subsidiaries/NNS
on/IN
Dec./NNP
31/CD
./.
Mr./NNP
McNair/NNP
,/,
62/CD
years/NNS
old/JJ
,/,
will/MD
be/VB
succeeded/VBN
by/IN
L.M./NNP
``/``
Bud/NNP
''/''
Baker/NNP
Jr./NNP
,/,
47/CD
,/,
the/DT
parent/NN
's/POS
chief/NN
credit/NN
officer/NN
and/CC
head/NN
of/IN
its/PRP$
administration/NN
division/NN
./.
Mr./NNP
Baker/NNP
will/MD
relinquish/VB
his/PRP$
previous/JJ
positions/NNS
,/,
but/CC
a/DT
successor/NN
for/IN
him/PRP
has/VBZ
n't/RB
been/VBN
named/VBN
yet/RB
./.
In/IN
addition/NN
,/,
on/IN
Jan./NNP
1/CD
,/,
Thomas/NNP
A./NNP
Bennett/NNP
,/,
52/CD
,/,
will/MD
become/VB
vice/NN
chairman/NN
and/CC
chief/NN
operating/VBG
officer/NN
of/IN
Wachovia/NNP
and/CC
Wachovia/NNP
Bank/NNP
&/CC
Trust/NNP
,/,
filling/VBG
a/DT
vacancy/NN
left/VBN
by/IN
the/DT
retired/VBN
Hans/NNP
W./NNP
Wanders/NNP
in/IN
April/NNP
./.
Mr./NNP
Bennett/NNP
will/MD
continue/VB
as/IN
executive/NN
in/IN
charge/NN
of/IN
the/DT
North/NNP
Carolina/NNP
banking/VBG
operation/NN
./.
Messrs./NNP
Baker/NNP
and/CC
Bennett/NNP
have/VBP
been/VBN
elected/VBN
directors/NNS
of/IN
Wachovia/NNP
and/CC
Wachovia/NNP
Bank/NNP
&/CC
Trust/NNP
filling/VBG
vacant/JJ
seats/NNS
on/IN
both/DT
boards/NNS
./.
Canadian/JJ
retail/NN
sales/NNS
rose/VBD
0.2/CD
%/NN
in/IN
August/NNP
from/IN
July/NNP
,/,
Statistics/NNP
Canada/NNP
,/,
a/DT
federal/JJ
agency/NN
,/,
said/VBD
./.
The/DT
August/NNP
increase/NN
followed/VBD
a/DT
0.3/CD
%/NN
decline/NN
in/IN
July/NNP
./.
During/IN
the/DT
past/JJ
four/CD
months/NNS
,/,
retail/JJ
sales/NNS
have/VBP
remained/VBN
generally/RB
weak/JJ
,/,
advancing/VBG
an/DT
average/JJ
0.2/CD
%/NN
a/DT
month/NN
,/,
the/DT
agency/NN
said/VBD
./.
Raw-steel/NN
production/NN
by/IN
the/DT
nation/NN
's/POS
mills/NNS
decreased/VBD
0.7/CD
%/NN
last/JJ
week/NN
to/TO
1,816,000/CD
tons/NNS
from/IN
1,828,000/CD
tons/NNS
the/DT
previous/JJ
week/NN
,/,
the/DT
American/NNP
Iron/NNP
and/CC
Steel/NNP
Institute/NNP
said/VBD
./.
Last/JJ
week/NN
's/POS
output/NN
fell/VBD
1.7/CD
%/NN
from/IN
the/DT
1,848,000/CD
tons/NNS
produced/VBD
a/DT
year/NN
earlier/RBR
./.
The/DT
industry/NN
used/VBD
81.6/CD
%/NN
of/IN
its/PRP$
capability/NN
last/JJ
week/NN
,/,
compared/VBN
with/IN
82.2/CD
%/NN
the/DT
previous/JJ
week/NN
and/CC
86.2/CD
%/NN
a/DT
year/NN
ago/IN
./.
The/DT
American/NNP
Iron/NNP
and/CC
Steel/NNP
Institute/NNP
reported/VBD
:/:
The/DT
capability/NN
utilization/NN
rate/NN
is/VBZ
a/DT
calculation/NN
designed/VBN
to/TO
indicate/VB
at/IN
what/WDT
percent/NN
of/IN
its/PRP$
production/NN
capability/NN
the/DT
industry/NN
is/VBZ
operating/VBG
in/IN
a/DT
given/VBN
week/NN
./.
With/IN
reduced/VBN
exports/NNS
and/CC
rising/VBG
imports/NNS
,/,
South/NNP
Korea/NNP
's/POS
trade/NN
surpluses/NNS
with/IN
the/DT
U.S./NNP
and/CC
Europe/NNP
between/IN
January/NNP
and/CC
September/NNP
fell/VBD
sharply/RB
from/IN
a/DT
year/NN
ago/IN
,/,
the/DT
Customs/NNP
Administration/NNP
said/VBD
./.
Officials/NNS
said/VBD
South/NNP
Korea/NNP
's/POS
trade/NN
surplus/NN
with/IN
the/DT
U.S./NNP
for/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
the/DT
year/NN
totaled/VBD
$/$
3.49/CD
billion/CD
,/,
down/IN
43/CD
%/NN
from/IN
the/DT
same/JJ
period/NN
last/JJ
year/NN
on/IN
a/DT
customs-clearance/NN
basis/NN
./.
South/NNP
Korean/NNP
exports/NNS
to/TO
the/DT
U.S./NNP
during/IN
the/DT
period/NN
fell/VBD
1.6/CD
%/NN
from/IN
a/DT
year/NN
ago/IN
to/TO
$/$
15.06/CD
billion/CD
,/,
while/IN
imports/NNS
from/IN
the/DT
U.S./NNP
soared/VBD
26/CD
%/NN
to/TO
$/$
11.56/CD
billion/CD
./.
The/DT
trade/NN
surplus/NN
with/IN
Europe/NNP
was/VBD
pegged/VBN
at/IN
$/$
414/CD
million/CD
,/,
down/IN
57/CD
%/NN
from/IN
a/DT
year/NN
ago/IN
./.
Officials/NNS
said/VBD
South/JJ
Korean/JJ
exports/NNS
to/TO
Europe/NNP
dropped/VBD
5.3/CD
%/NN
to/TO
$/$
3.02/CD
billion/CD
while/IN
imports/NNS
from/IN
there/RB
went/VBD
up/IN
17/CD
%/NN
to/TO
$/$
2.61/CD
billion/CD
./.
Bausch/NNP
&/CC
Lomb/NNP
Inc./NNP
said/VBD
its/PRP$
pharmaceuticals/NNS
subsidiary/NN
agreed/VBD
to/TO
supply/VB
collagen/NN
corneal/JJ
shields/NNS
for/IN
animal/NN
eye/NN
surgery/NN
to/TO
a/DT
unit/NN
of/IN
International/NNP
Minerals/NNPS
&/CC
Chemical/NNP
Corp/NNP
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
The/DT
agreement/NN
marks/VBZ
Bausch/NNP
&/CC
Lomb/NNP
's/POS
first/JJ
venture/NN
selling/VBG
its/PRP$
eye/NN
care/NN
products/NNS
for/IN
use/NN
by/IN
veterinarians/NNS
./.
The/DT
collagen/NN
corneal/JJ
shield/NN
helps/VBZ
speed/VB
healing/NN
of/IN
the/DT
cornea/NN
after/IN
eye/NN
surgery/NN
./.
The/DT
product/NN
will/MD
be/VB
distributed/VBN
by/IN
Pitman-Moore/NNP
Inc./NNP
,/,
a/DT
subsidiary/NN
of/IN
International/NNP
Minerals/NNPS
./.
France/NNP
's/POS
industrial/JJ
production/NN
index/NN
for/IN
July/NNP
and/CC
August/NNP
rose/VBD
1/CD
%/NN
from/IN
June/NNP
and/CC
was/VBD
up/IN
4.6/CD
%/NN
from/IN
a/DT
year/NN
ago/IN
,/,
according/VBG
to/TO
seasonally/RB
adjusted/VBN
data/NNS
from/IN
the/DT
National/NNP
Statistics/NNP
Institute/NNP
./.
The/DT
state/NN
agency/NN
,/,
which/WDT
usually/RB
publishes/VBZ
the/DT
data/NNS
on/IN
monthly/JJ
basis/NN
,/,
but/CC
traditionally/RB
combines/VBZ
the/DT
index/NN
for/IN
the/DT
two/CD
summer-holiday/JJ
months/NNS
,/,
said/VBD
the/DT
advance/NN
was/VBD
led/VBN
by/IN
output/NN
of/IN
consumer/NN
goods/NNS
,/,
which/WDT
rose/VBD
3.5/CD
%/NN
from/IN
June/NNP
and/CC
was/VBD
up/IN
7.2/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
./.
Semifinished/VBN
goods/NNS
turned/VBD
in/IN
a/DT
strong/JJ
showing/NN
,/,
with/IN
a/DT
monthly/JJ
rise/NN
of/IN
2/CD
%/NN
and/CC
a/DT
year-on-year/JJ
advance/NN
of/IN
3/CD
%/NN
./.
Food/NN
production/NN
was/VBD
ahead/RB
1.7/CD
%/NN
from/IN
June/NNP
and/CC
5.3/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
./.
Output/NN
in/IN
the/DT
capital-goods/NNS
sector/NN
was/VBD
ahead/RB
0.9/CD
%/NN
on/IN
a/DT
monthly/JJ
basis/NN
and/CC
2.7/CD
%/NN
year/NN
on/IN
year/NN
./.
These/DT
gains/NNS
were/VBD
partly/RB
offset/VBN
by/IN
output/NN
of/IN
cars/NNS
and/CC
other/JJ
consumer/NN
durables/NNS
,/,
which/WDT
eased/VBD
3.9/CD
%/NN
from/IN
June/NNP
's/POS
high/JJ
level/NN
./.
The/DT
sector/NN
was/VBD
still/RB
8.8/CD
%/NN
above/IN
its/PRP$
output/NN
levels/NNS
from/IN
a/DT
year/NN
earlier/RBR
,/,
however/RB
./.
International/NNP
Minerals/NNPS
&/CC
Chemical/NNP
Corp./NNP
said/VBD
it/PRP
agreed/VBD
definitively/RB
to/TO
sell/VB
its/PRP$
international/JJ
fragrance/NN
business/NN
to/TO
Bayer/NNP
AG/NNP
of/IN
West/NNP
Germany/NNP
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
The/DT
maker/NN
of/IN
animal/NN
health/NN
and/CC
nutrition/NN
products/NNS
said/VBD
the/DT
business/NN
,/,
Creations/NNPS
Aromatiques/NNP
of/IN
Port/NNP
Valais/NNP
,/,
Switzerland/NNP
,/,
and/CC
Woodside/NNP
,/,
N.Y./NNP
,/,
is/VBZ
a/DT
division/NN
of/IN
its/PRP$
Mallinckrodt/NNP
Inc./NNP
subsidiary/NN
and/CC
had/VBD
sales/NNS
of/IN
about/IN
$/$
30/CD
million/CD
for/IN
its/PRP$
most/JJS
recent/JJ
year/NN
./.
International/NNP
Minerals/NNPS
said/VBD
the/DT
sale/NN
will/MD
allow/VB
Mallinckrodt/NNP
to/TO
focus/VB
its/PRP$
resources/NNS
on/IN
its/PRP$
core/NN
businesses/NNS
of/IN
medical/JJ
products/NNS
,/,
specialty/NN
chemicals/NNS
and/CC
flavors/NNS
./.
Consumers/NNPS
Power/NNP
Co./NNP
filed/VBD
with/IN
the/DT
Michigan/NNP
Public/NNP
Service/NNP
Commission/NNP
a/DT
contract/NN
to/TO
buy/VB
power/NN
from/IN
the/DT
Palisades/NNP
nuclear/JJ
plant/NN
under/IN
a/DT
proposed/VBN
new/JJ
ownership/NN
arrangement/NN
for/IN
the/DT
plant/NN
./.
Consumers/NNPS
Power/NNP
and/CC
Bechtel/NNP
Power/NNP
Corp./NNP
last/JJ
year/NN
announced/VBD
a/DT
joint/JJ
venture/NN
to/TO
buy/VB
the/DT
plant/NN
,/,
currently/RB
owned/VBN
completely/RB
by/IN
the/DT
utility/NN
./.
Two/CD
Japanese/JJ
scientists/NNS
said/VBD
they/PRP
discovered/VBD
an/DT
antibody/NN
that/IN
,/,
in/IN
laboratory/NN
test-tube/NN
experiments/NNS
,/,
kills/VBZ
AIDS-infected/JJ
cells/NNS
while/IN
preserving/VBG
healthy/JJ
cells/NNS
./.
If/IN
further/JJ
experiments/NNS
are/VBP
successful/JJ
,/,
the/DT
work/NN
would/MD
represent/VB
a/DT
major/JJ
advance/NN
in/IN
research/NN
on/IN
acquired/VBN
immune/JJ
deficiency/NN
syndrome/NN
./.
The/DT
drug/NN
AZT/NNP
,/,
the/DT
only/JJ
treatment/NN
currently/RB
on/IN
the/DT
market/NN
,/,
claims/VBZ
only/RB
to/TO
help/VB
stop/VB
the/DT
spread/NN
of/IN
AIDS/NNP
,/,
not/RB
to/TO
cure/VB
it/PRP
./.
But/CC
several/JJ
analysts/NNS
and/CC
Japanese/JJ
scientists/NNS
familiar/JJ
with/IN
the/DT
study/NN
,/,
which/WDT
was/VBD
announced/VBN
at/IN
a/DT
conference/NN
in/IN
Nagoya/NNP
yesterday/NN
,/,
expressed/VBD
skepticism/NN
over/IN
the/DT
significance/NN
of/IN
the/DT
results/NNS
./.
And/CC
the/DT
researchers/NNS
themselves/PRP
acknowledged/VBD
they/PRP
still/RB
must/MD
do/VB
much/RB
more/JJR
work/NN
before/IN
they/PRP
can/MD
say/VB
whether/IN
the/DT
treatment/NN
would/MD
actually/RB
cure/VB
humans/NNS
./.
Shin/NNP
Yonehara/NNP
,/,
a/DT
research/NN
scientist/NN
at/IN
the/DT
Tokyo/NNP
Metropolitan/NNP
Institute/NNP
of/IN
Medical/NNP
Science/NNP
,/,
said/VBD
the/DT
antibody/NN
he/PRP
discovered/VBD
works/VBZ
by/IN
recognizing/VBG
an/DT
antigen/NN
called/VBN
a/DT
Fas-antigen/NN
,/,
which/WDT
is/VBZ
characteristic/JJ
of/IN
an/DT
infected/JJ
cell/NN
./.
The/DT
antibody/NN
then/RB
kills/VBZ
the/DT
cell/NN
./.
Dr./NNP
Yonehara/NNP
and/CC
his/PRP$
partner/NN
,/,
Nobuyuki/NNP
Kobayashi/NNP
of/IN
Yamaguchi/NNP
University/NNP
,/,
said/VBD
their/PRP$
experiments/NNS
showed/VBD
that/IN
the/DT
antibody/NN
wiped/VBD
out/IN
an/DT
average/NN
of/IN
60/CD
%/NN
of/IN
AIDS-infected/JJ
cells/NNS
within/IN
three/CD
days/NNS
./.
In/IN
some/DT
of/IN
the/DT
experiments/NNS
,/,
it/PRP
killed/VBD
almost/RB
all/PDT
the/DT
infected/JJ
cells/NNS
,/,
the/DT
researchers/NNS
said/VBD
./.
Meanwhile/RB
,/,
fewer/JJR
than/IN
10/CD
%/NN
of/IN
the/DT
healthy/JJ
cells/NNS
were/VBD
killed/VBN
./.
The/DT
two/CD
said/VBD
they/PRP
must/MD
still/RB
do/VB
more/JJR
laboratory/NN
tests/NNS
,/,
then/RB
experiment/NN
on/IN
animals/NNS
./.
They/PRP
said/VBD
they/PRP
hoped/VBD
to/TO
conduct/VB
tests/NNS
on/IN
human/JJ
patients/NNS
in/IN
the/DT
U.S./NNP
by/IN
late/JJ
next/JJ
year/NN
./.
Japan/NNP
does/VBZ
n't/RB
have/VB
enough/JJ
AIDS/NNP
patients/NNS
to/TO
do/VB
significant/JJ
experimentation/NN
in/IN
that/DT
country/NN
,/,
they/PRP
said/VBD
./.
The/DT
announcement/NN
got/VBD
wide/JJ
exposure/NN
in/IN
the/DT
Japanese/JJ
media/NNS
,/,
and/CC
even/RB
moved/VBD
some/DT
pharmaceutical/JJ
stocks/NNS
yesterday/NN
./.
But/CC
Takashi/NNP
Kitamura/NNP
,/,
director/NN
of/IN
the/DT
biology/NN
department/NN
at/IN
Japan/NNP
's/POS
National/NNP
Institute/NNP
of/IN
Health/NNP
and/CC
secretary/NN
of/IN
the/DT
government/NN
's/POS
AIDS-research/JJ
center/NN
,/,
said/VBD
,/,
``/``
I/PRP
'm/VBP
not/RB
so/RB
optimistic/JJ
of/IN
its/PRP$
future/JJ
use/NN
in/IN
therapeutic/JJ
methods/NNS
./.
''/''
He/PRP
said/VBD
some/DT
infected/JJ
cells/NNS
may/MD
not/RB
have/VB
the/DT
relevant/JJ
antigen/NN
and/CC
so/RB
would/MD
n't/RB
be/VB
killed/VBN
even/RB
after/IN
exposure/NN
to/TO
the/DT
antibody/NN
./.
``/``
The/DT
results/NNS
seem/VBP
to/TO
be/VB
very/RB
premature/JJ
,/,
''/''
said/VBD
Mitsuru/NNP
Miyata/NNP
,/,
editor/NN
of/IN
Nikkei/NNP
Biotechnology/NNP
,/,
a/DT
leading/VBG
Japanese/JJ
industry/NN
newsletter/NN
./.
Dr./NNP
Kobayashi/NNP
responded/VBD
that/IN
he/PRP
thought/VBD
the/DT
antibody/NN
could/MD
potentially/RB
kill/VB
all/DT
infected/JJ
cells/NNS
./.
But/CC
he/PRP
and/CC
Dr./NNP
Yonehara/NNP
said/VBD
there/EX
were/VBD
still/RB
several/JJ
uncertainties/NNS
,/,
particularly/RB
regarding/VBG
possible/JJ
side/NN
effects/NNS
./.
``/``
Our/PRP$
antibody/NN
specifically/RB
killed/VBD
infected/JJ
cells/NNS
at/IN
a/DT
very/RB
low/JJ
dose/NN
,/,
but/CC
it/PRP
can/MD
also/RB
kill/VB
other/JJ
cells/NNS
,/,
''/''
said/VBD
Dr./NNP
Yonehara/NNP
./.
``/``
We/PRP
do/VBP
n't/RB
know/VB
the/DT
effect/NN
of/IN
our/PRP$
antibody/NN
on/IN
the/DT
human/JJ
body/NN
./.
''/''
AIDS/NNP
is/VBZ
n't/RB
considered/VBN
a/DT
widespread/JJ
problem/NN
in/IN
Japan/NNP
--/:
the/DT
government/NN
reports/VBZ
about/IN
1,000/CD
known/VBN
carriers/NNS
of/IN
the/DT
virus/NN
--/:
but/CC
many/JJ
companies/NNS
have/VBP
poured/VBN
substantial/JJ
resources/NNS
into/IN
research/NN
in/IN
recent/JJ
years/NNS
,/,
hoping/VBG
to/TO
cash/VB
in/IN
on/IN
a/DT
possible/JJ
cure/NN
./.
Dr./NNP
Kitamura/NNP
said/VBD
about/IN
35/CD
projects/NNS
are/VBP
currently/RB
under/IN
way/NN
in/IN
Japan/NNP
,/,
and/CC
that/IN
Japanese/JJ
researchers/NNS
in/IN
the/DT
past/JJ
year/NN
have/VBP
made/VBN
available/JJ
three/CD
possible/JJ
cures/NNS
to/TO
American/JJ
researchers/NNS
for/IN
clinical/JJ
tests/NNS
./.
He/PRP
said/VBD
that/IN
when/WRB
scientists/NNS
from/IN
the/DT
two/CD
countries/NNS
meet/VBP
again/RB
in/IN
January/NNP
in/IN
New/NNP
Orleans/NNP
,/,
the/DT
Japanese/NNP
will/MD
present/VB
at/IN
least/JJS
three/CD
more/JJR
drugs/NNS
for/IN
human/JJ
testing/NN
./.
AZT/NNP
is/VBZ
the/DT
world/NN
's/POS
only/JJ
prescription/NN
medicine/NN
approved/VBN
for/IN
treating/VBG
the/DT
disease/NN
./.
Wellcome/NNP
PLC/NNP
,/,
a/DT
major/JJ
British/JJ
pharmaceutical/NN
maker/NN
,/,
sells/VBZ
the/DT
drug/NN
under/IN
the/DT
name/NN
Retrovir/NNP
./.
A/DT
Wellcome/NNP
spokesman/NN
declined/VBD
to/TO
comment/VB
on/IN
the/DT
discovery/NN
of/IN
the/DT
antibody/NN
in/IN
Japan/NNP
./.
But/CC
Andrew/NNP
Porter/NNP
,/,
a/DT
drug-industry/NN
analyst/NN
at/IN
Nikko/NNP
Securities/NNPS
Co./NNP
in/IN
London/NNP
,/,
said/VBD
if/IN
the/DT
product/NN
were/VBD
to/TO
be/VB
successfully/RB
developed/VBN
it/PRP
would/MD
represent/VB
``/``
a/DT
potential/JJ
threat/NN
to/TO
the/DT
long-term/JJ
viability/NN
of/IN
Retrovir/NNP
./.
''/''
The/DT
following/VBG
issues/NNS
were/VBD
recently/RB
filed/VBN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
:/:
American/NNP
Exploration/NNP
Co./NNP
,/,
offering/NN
of/IN
five/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
&/CC
Co./NNP
and/CC
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc/NNP
./.
Chemical/NNP
Waste/NNP
Management/NNP
Inc./NNP
,/,
proposed/VBD
global/JJ
offering/NN
of/IN
8,500,000/CD
shares/NNS
of/IN
common/JJ
stock/NN
,/,
of/IN
which/WDT
seven/CD
million/CD
of/IN
the/DT
shares/NNS
will/MD
be/VB
offered/VBN
in/IN
the/DT
U.S./NNP
and/CC
1,500,000/CD
shares/NNS
will/MD
be/VB
offered/VBN
overseas/RB
,/,
via/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
domestic/JJ
Kidder/NNP
,/,
Peabody/NNP
&/CC
Co/NNP
./.
international/JJ
Interlake/NNP
Corp./NNP
,/,
proposed/VBD
offering/NN
of/IN
$/$
200/CD
million/CD
of/IN
senior/JJ
subordinated/VBN
debentures/NNS
,/,
via/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
./.
InterMedia/NNP
Capital/NNP
Corp./NNP
,/,
Robin/NNP
Cable/NNP
Systems/NNPS
L.P./NNP
and/CC
Brenmor/NNP
Cable/NNP
Partners/NNPS
,/,
offering/NN
of/IN
senior/JJ
subordinated/VBN
discount/NN
reset/NN
debentures/NNS
,/,
via/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc/NNP
./.
John/NNP
Nuveen/NNP
&/CC
Co./NNP
,/,
initial/JJ
offerings/NNS
of/IN
the/DT
Nuveen/NNP
California/NNP
Performance/NNP
Plus/NNP
Municipal/NNP
Fund/NNP
Inc./NNP
and/CC
the/DT
Nuveen/NNP
New/NNP
York/NNP
Performance/NNP
Plus/NNP
Municipal/NNP
Fund/NNP
Inc./NNP
,/,
via/IN
Alex/NNP
./.
Brown/NNP
&/CC
Sons/NNPS
Inc/NNP
./.
KnowledgeWare/NNP
Inc./NNP
,/,
initial/JJ
offering/NN
of/IN
three/CD
million/CD
shares/NNS
of/IN
its/PRP$
common/JJ
stock/NN
,/,
of/IN
which/WDT
1,657,736/CD
shares/NNS
will/MD
be/VB
sold/VBN
by/IN
the/DT
company/NN
and/CC
1,342,264/CD
will/MD
be/VB
sold/VBN
by/IN
holders/NNS
,/,
via/IN
Montgomery/NNP
Securities/NNPS
and/CC
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
Securities/NNPS
Corp/NNP
./.
MGM/NNP
Grand/NNP
Inc./NNP
,/,
proposed/VBD
offering/NN
of/IN
six/CD
million/CD
shares/NNS
of/IN
common/JJ
stock/NN
,/,
via/IN
Merrill/NNP
Lynch/NNP
./.
Microlog/NNP
Corp./NNP
,/,
formerly/RB
called/VBN
Old/NNP
Dominion/NNP
Systems/NNPS
Inc./NNP
,/,
offering/NN
of/IN
1.2/CD
million/CD
common/JJ
shares/NNS
,/,
of/IN
which/WDT
one/CD
million/CD
will/MD
be/VB
sold/VBN
by/IN
the/DT
company/NN
,/,
and/CC
the/DT
balance/NN
by/IN
holders/NNS
,/,
via/IN
Hambrecht/NNP
&/CC
Quist/NNP
and/CC
Johnston/NNP
,/,
Lemon/NNP
&/CC
Co/NNP
./.
Scott/NNP
Paper/NNP
Co./NNP
,/,
shelf/NN
offering/NN
of/IN
up/IN
to/TO
$/$
360/CD
million/CD
of/IN
debt/NN
securities/NNS
,/,
via/IN
Goldman/NNP
Sachs/NNP
,/,
Salomon/NNP
Brothers/NNPS
Inc./NNP
and/CC
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
./.
Sullivan/NNP
Graphics/NNP
Inc./NNP
,/,
offering/NN
of/IN
$/$
110/CD
million/CD
of/IN
senior/JJ
subordinated/VBN
notes/NNS
,/,
via/IN
Merrill/NNP
Lynch/NNP
./.
Sun/NNP
Sportswear/NNP
Inc./NNP
,/,
initial/JJ
offering/NN
of/IN
1.7/CD
million/CD
common/JJ
shares/NNS
,/,
of/IN
which/WDT
one/CD
million/CD
shares/NNS
will/MD
be/VB
sold/VBN
by/IN
the/DT
company/NN
,/,
and/CC
the/DT
balance/NN
by/IN
a/DT
holder/NN
,/,
via/IN
Salomon/NNP
Brothers/NNPS
Inc./NNP
and/CC
Piper/NNP
,/,
Jaffray/NNP
&/CC
Hopwood/NNP
Inc/NNP
./.
Yes/NNP
Clothing/NNP
Co./NNP
,/,
proposed/VBD
initial/JJ
offering/NN
of/IN
776,470/CD
common/JJ
shares/NNS
,/,
of/IN
which/WDT
600,000/CD
shares/NNS
will/MD
be/VB
offered/VBN
by/IN
the/DT
company/NN
and/CC
176,470/CD
by/IN
holders/NNS
,/,
via/IN
Seidler/NNP
Amdec/NNP
Securities/NNPS
Inc/NNP
./.
A/DT
#/#
320/CD
million/CD
$/$
508/CD
million/CD
British/NNP
Airways/NNPS
PLC/NNP
rights/NNS
issue/NN
flopped/VBD
badly/RB
--/:
the/DT
victim/NN
of/IN
recent/JJ
market/NN
turbulence/NN
and/CC
the/DT
collapse/NN
of/IN
the/DT
buy-out/NN
bid/NN
for/IN
United/NNP
Airlines/NNPS
'/POS
parent/NN
,/,
UAL/NNP
Corp/NNP
./.
The/DT
United/NNP
Kingdom/NNP
carrier/NN
had/VBD
planned/VBN
the/DT
issue/NN
to/TO
help/VB
finance/VB
its/PRP$
$/$
750/CD
million/CD
purchase/NN
of/IN
a/DT
15/CD
%/NN
stake/NN
in/IN
UAL/NNP
./.
But/CC
British/NNP
Airways/NNPS
withdrew/VBD
from/IN
the/DT
UAL/NNP
labor-management/NN
buy-out/JJ
plan/NN
last/JJ
Friday/NNP
,/,
after/IN
the/DT
group/NN
failed/VBD
to/TO
get/VB
bank/NN
financing/NN
for/IN
its/PRP$
$/$
6.79/CD
billion/CD
buy-out/NN
./.
British/NNP
Airways/NNPS
said/VBD
its/PRP$
shareholders/NNS
accepted/VBD
only/RB
6.3/CD
%/NN
of/IN
the/DT
convertible/JJ
capital/NN
bonds/NNS
,/,
but/CC
that/IN
the/DT
rest/NN
of/IN
the/DT
issue/NN
will/MD
be/VB
taken/VBN
up/IN
by/IN
underwriters/NNS
./.
Analysts/NNS
said/VBD
that/IN
6.3/CD
%/NN
level/NN
marked/VBD
the/DT
poorest/JJS
showing/NN
for/IN
any/DT
major/JJ
British/JJ
rights/NNS
issue/NN
since/IN
the/DT
1987/CD
global/JJ
stock/NN
market/NN
crash/NN
./.
``/``
It/PRP
is/VBZ
close/JJ
to/TO
being/VBG
a/DT
record/NN
undersubscription/NN
,/,
''/''
said/VBD
Bob/NNP
Bucknell/NNP
,/,
an/DT
analyst/NN
with/IN
London/NNP
broker/NN
Smith/NNP
New/NNP
Court/NNP
Securities/NNPS
./.
``/``
Fund/NN
managers/NNS
do/VBP
n't/RB
like/VB
to/TO
have/VB
rights/NNS
issues/NNS
that/WDT
do/VBP
n't/RB
have/VB
an/DT
obvious/JJ
reason/NN
./.
The/DT
obvious/JJ
reason/NN
was/VBD
(/(
for/IN
British/NNP
Air/NNP
a/DT
stake/NN
in/IN
United/NNP
Airlines/NNPS
./.
''/''
In/IN
a/DT
statement/NN
,/,
British/NNP
Air/NNP
Chairman/NNP
Lord/NNP
King/NNP
said/VBD
the/DT
company/NN
was/VBD
``/``
obviously/RB
disappointed/VBN
that/IN
the/DT
issue/NN
was/VBD
not/RB
taken/VBN
up/IN
,/,
but/CC
it/PRP
would/MD
have/VB
been/VBN
unreasonable/JJ
to/TO
expect/VB
a/DT
better/JJ
result/NN
given/VBN
the/DT
volatility/NN
of/IN
the/DT
stock/NN
market/NN
since/IN
the/DT
launch/NN
of/IN
the/DT
issue/NN
./.
''/''
But/CC
except/IN
for/IN
the/DT
embarrassment/NN
,/,
British/NNP
Air/NNP
will/MD
emerge/VB
relatively/RB
unscathed/JJ
from/IN
the/DT
flopped/VBN
issue/NN
./.
Underwriters/NNS
led/VBD
by/IN
Lazard/NNP
Brothers/NNPS
&/CC
Co./NNP
will/MD
pick/VB
up/IN
the/DT
rest/NN
of/IN
the/DT
airline/NN
's/POS
offer/NN
of/IN
four/CD
convertible/JJ
capital/NN
bonds/NNS
for/IN
every/DT
nine/CD
common/JJ
shares/NNS
./.
Lazard/NNP
and/CC
other/JJ
primary/JJ
underwriters/NNS
have/VBP
reduced/VBN
or/CC
eliminated/VBN
their/PRP$
exposure/NN
by/IN
sub-underwriting/VBG
the/DT
issue/NN
among/IN
U.K./NNP
institutional/JJ
investors/NNS
./.
``/``
The/DT
paper/NN
loss/NN
here/RB
is/VBZ
very/RB
small/JJ
''/''
for/IN
these/DT
sub-underwriters/NNS
,/,
observed/VBD
John/NNP
Nelson/NNP
,/,
a/DT
Lazard/NNP
managing/VBG
director/NN
./.
In/IN
any/DT
case/NN
,/,
he/PRP
added/VBD
,/,
``/``
most/JJS
institutions/NNS
probably/RB
wo/MD
n't/RB
sell/VB
''/''
the/DT
bonds/NNS
./.
And/CC
instead/RB
of/IN
buying/VBG
the/DT
UAL/NNP
stake/NN
,/,
the/DT
U.K./NNP
carrier/NN
will/MD
be/VB
able/JJ
to/TO
reduce/VB
its/PRP$
high/JJ
debt/NN
level/NN
and/CC
build/VB
an/DT
acquisition/NN
war/NN
chest/NN
./.
``/``
From/IN
a/DT
cash/NN
flow/NN
point/NN
of/IN
view/NN
,/,
British/NNP
Airways/NNPS
is/VBZ
better/JJR
off/IN
not/RB
being/VBG
in/IN
United/NNP
Airlines/NNPS
in/IN
the/DT
short/JJ
term/NN
,/,
''/''
said/VBD
Andy/NNP
Chambers/NNP
,/,
an/DT
analyst/NN
at/IN
Nomura/NNP
Research/NNP
Institute/NNP
in/IN
London/NNP
./.
Added/VBN
another/DT
U.K./NNP
analyst/NN
:/:
``/``
It/PRP
gives/VBZ
them/PRP
some/DT
cash/NN
in/IN
the/DT
back/NN
pocket/NN
for/IN
when/WRB
they/PRP
want/VBP
to/TO
do/VB
something/NN
./.
''/''
For/IN
instance/NN
,/,
British/NNP
Air/NNP
is/VBZ
continuing/VBG
to/TO
negotiate/VB
with/IN
KLM/NNP
Royal/NNP
Dutch/NNP
Airlines/NNPS
about/IN
each/DT
acquiring/VBG
a/DT
20/CD
%/NN
stake/NN
in/IN
Sabena/NNP
World/NNP
Airlines/NNPS
,/,
the/DT
air/NN
transport/NN
subsidiary/NN
of/IN
the/DT
Belgian/JJ
national/JJ
airline/NN
./.
A/DT
definitive/JJ
agreement/NN
had/VBD
been/VBN
expected/VBN
by/IN
the/DT
end/NN
of/IN
July/NNP
./.
The/DT
failed/VBN
rights/NNS
issue/NN
also/RB
should/MD
have/VB
a/DT
modest/JJ
impact/NN
on/IN
British/NNP
Air/NNP
shares/NNS
./.
The/DT
airline/NN
's/POS
share/NN
price/NN
already/RB
is/VBZ
far/RB
below/IN
the/DT
210/CD
pence/NN
$/$
3.33/CD
level/NN
seen/VBN
after/IN
the/DT
company/NN
announced/VBD
the/DT
rights/NNS
issue/NN
in/IN
late/JJ
September/NNP
./.
In/IN
late/RB
trading/NN
on/IN
London/NNP
's/POS
Stock/NNP
Exchange/NNP
yesterday/NN
,/,
the/DT
shares/NNS
were/VBD
off/IN
three/CD
pence/NN
at/IN
194/CD
pence/NN
./.
And/CC
because/IN
British/NNP
Air/NNP
is/VBZ
issuing/VBG
convertible/JJ
bonds/NNS
rather/RB
than/IN
ordinary/JJ
shares/NNS
,/,
the/DT
share/NN
price/NN
wo/MD
n't/RB
be/VB
directly/RB
hurt/VBN
by/IN
any/DT
surplus/NN
left/VBN
with/IN
underwriters/NNS
after/IN
they/PRP
try/VBP
to/TO
sell/VB
the/DT
issue/NN
in/IN
the/DT
open/JJ
market/NN
./.
But/CC
British/NNP
Air/NNP
's/POS
withdrawal/NN
from/IN
the/DT
UAL/NNP
buy-out/NN
could/MD
have/VB
further/JJ
repercussions/NNS
./.
Some/DT
analysts/NNS
speculated/VBD
yesterday/NN
that/IN
the/DT
move/NN
has/VBZ
set/VBN
off/IN
a/DT
board/NN
room/NN
split/NN
,/,
which/WDT
may/MD
lead/VB
to/TO
the/DT
resignation/NN
of/IN
Sir/NNP
Colin/NNP
Marshall/NNP
,/,
the/DT
carrier/NN
's/POS
chief/NN
executive/NN
officer/NN
./.
``/``
The/DT
stories/NNS
are/VBP
rubbish/JJ
,/,
''/''
a/DT
British/NNP
Air/NNP
spokesman/NN
said/VBD
./.
``/``
There/EX
is/VBZ
no/DT
difference/NN
of/IN
opinion/NN
between/IN
(/(
Chairman/NN
Lord/NNP
King/NNP
and/CC
Sir/NNP
Colin/NNP
on/IN
any/DT
aspect/NN
of/IN
company/NN
policy/NN
./.
''/''
MINORITY/NN
RECRUITING/NN
has/VBZ
yet/RB
to/TO
meet/VB
hopes/NNS
raised/VBN
by/IN
Bush/NNP
administration/NN
./.
Six/CD
months/NNS
ago/IN
,/,
as/IN
some/DT
personnel/NNS
specialists/NNS
saw/VBD
it/PRP
,/,
a/DT
perception/NN
that/IN
President/NNP
Bush/NNP
really/RB
cared/VBD
about/IN
fair/JJ
employment/NN
--/:
after/IN
what/WP
they/PRP
said/VBD
was/VBD
eight/CD
years/NNS
of/IN
Reagan-era/NN
neglect/NN
--/:
was/VBD
prodding/VBG
top/JJ
management/NN
to/TO
raise/VB
hiring/VBG
goals/NNS
for/IN
females/NNS
,/,
blacks/NNS
and/CC
other/JJ
minorities/NNS
./.
The/DT
perception/NN
lingers/VBZ
,/,
says/VBZ
an/DT
official/NN
at/IN
a/DT
major/JJ
industrial/JJ
company/NN
./.
But/CC
so/RB
far/RB
,/,
he/PRP
declares/VBZ
,/,
there/EX
's/VBZ
little/JJ
evidence/NN
the/DT
``/``
new/JJ
urgency/NN
''/''
is/VBZ
trickling/VBG
down/IN
to/TO
the/DT
managers/NNS
who/WP
actually/RB
do/VBP
hiring/NN
./.
``/``
Is/VBZ
there/EX
really/RB
a/DT
commitment/NN
or/CC
an/DT
illusion/NN
of/IN
activity/NN
?/.
''/''
he/PRP
asks/VBZ
./.
The/DT
recruiting/NN
``/``
has/VBZ
n't/RB
materialized/VBD
,/,
''/''
asserts/VBZ
Jeffrey/NNP
Christian/NNP
,/,
who/WP
runs/VBZ
a/DT
search/NN
agency/NN
./.
Samuel/NNP
Hall/NNP
,/,
Howard/NNP
University/NNP
's/POS
placement/NN
director/NN
,/,
also/RB
does/VBZ
n't/RB
see/VB
it/PRP
./.
And/CC
he/PRP
questions/VBZ
the/DT
White/NNP
House/NNP
dedication/NN
./.
``/``
I/PRP
do/VBP
n't/RB
think/VB
the/DT
Bush/NNP
administration/NN
has/VBZ
done/VBN
anything/NN
,/,
''/''
he/PRP
says/VBZ
./.
Recruiter/NNP
Donald/NNP
Clark/NNP
does/VBZ
note/VB
an/DT
increase/NN
in/IN
searches/NNS
for/IN
minority/NN
candidates/NNS
./.
But/CC
some/DT
of/IN
the/DT
activity/NN
,/,
he/PRP
says/VBZ
,/,
may/MD
reflect/VB
a/DT
rush/NN
to/TO
get/VB
``/``
numbers/NNS
in/IN
order/NN
''/''
for/IN
end-of-year/JJ
reports/NNS
./.
PAY/NN
FOR/IN
PERFORMANCE/NN
hangs/VBZ
mostly/RB
on/IN
boss/NN
's/POS
subjective/JJ
view/NN
./.
Du/NNP
Pont/NNP
Co./NNP
in/IN
a/DT
couple/NN
of/IN
units/NNS
has/VBZ
installed/VBN
objective/JJ
tests/NNS
based/VBN
on/IN
earnings/NNS
or/CC
return/NN
on/IN
equity/NN
./.
Many/JJ
companies/NNS
have/VBP
set/VBN
up/IN
machinery/NN
to/TO
assure/VB
workers/NNS
a/DT
fair/JJ
shake/NN
./.
At/IN
most/JJS
firms/NNS
,/,
though/RB
,/,
it/PRP
's/VBZ
the/DT
immediate/JJ
supervisor/NN
who/WP
decides/VBZ
the/DT
merit/NN
increases/VBZ
subordinates/NNS
will/MD
be/VB
paid/VBN
./.
Managers/NNS
have/VBP
``/``
some/DT
very/RB
broad/JJ
discretion/NN
,/,
''/''
says/VBZ
an/DT
official/NN
at/IN
Walt/NNP
Disney/NNP
Co/NNP
./.
Unocal/NNP
Corp./NNP
's/POS
top/JJ
management/NN
sets/VBZ
guidelines/NNS
,/,
but/CC
line/NN
supervisors/NNS
slice/VBP
up/IN
the/DT
merit/NN
pie/NN
./.
Lotus/NNP
Development/NNP
Corp./NNP
feeds/VBZ
its/PRP$
evaluations/NNS
into/IN
a/DT
computer/NN
,/,
but/CC
only/RB
for/IN
storage/NN
;/:
the/DT
decisions/NNS
are/VBP
made/VBN
by/IN
supervisors/NNS
./.
Hershey/NNP
Foods/NNPS
Corp./NNP
strives/VBZ
for/IN
fairness/NN
by/IN
basing/VBG
increases/NNS
on/IN
quarterly/JJ
reviews/NNS
,/,
annual/JJ
appraisals/NNS
and/CC
meetings/NNS
with/IN
workers/NNS
./.
At/IN
Chemfix/NNP
Technology/NNP
Inc./NNP
,/,
each/DT
supervisor/NN
's/POS
recommendation/NN
must/MD
be/VB
approved/VBN
by/IN
the/DT
next/JJ
boss/NN
up/IN
the/DT
line/NN
,/,
and/CC
then/RB
sanctioned/VBN
by/IN
a/DT
salary/NN
review/NN
committee/NN
./.
JAPANESE/JJ
COMPANIES/NNS
fare/VBP
best/RB
in/IN
U.S./NNP
when/WRB
they/PRP
give/VBP
Americans/NNPS
more/JJR
say/NN
./.
University/NNP
of/IN
Michigan/NNP
researchers/NNS
find/VBP
the/DT
companies/NNS
earn/VBP
more/RBR
and/CC
win/VBP
a/DT
bigger/JJR
market/NN
share/NN
when/WRB
their/PRP$
American/JJ
employees/NNS
get/VBP
a/DT
voice/NN
in/IN
planning/NN
,/,
product/NN
development/NN
and/CC
design/NN
,/,
including/VBG
decision-making/JJ
back/NN
in/IN
Japan/NNP
./.
``/``
You/PRP
ca/MD
n't/RB
hire/VB
competent/JJ
Americans/NNPS
and/CC
say/VB
,/,
`/``
Let/VB
them/PRP
run/VB
only/RB
their/PRP$
own/JJ
show/NN
,/,
'/''
''/''
says/VBZ
Vladimir/NNP
Pucik/NNP
,/,
who/WP
headed/VBD
the/DT
study/NN
run/VBN
with/IN
Egon/NNP
Zehnder/NNP
International/NNP
,/,
a/DT
search/NN
firm/NN
./.
The/DT
researchers/NNS
say/VBP
many/JJ
Japanese/JJ
companies/NNS
err/VBP
in/IN
the/DT
U.S./NNP
by/IN
adopting/VBG
the/DT
American/JJ
practice/NN
of/IN
hiring/VBG
managers/NNS
on/IN
the/DT
``/``
open/JJ
market/NN
./.
''/''
In/IN
Japan/NNP
,/,
by/IN
contrast/NN
,/,
companies/NNS
tend/VBP
to/TO
develop/VB
their/PRP$
own/JJ
talent/NN
and/CC
promote/VB
from/IN
within/IN
./.
The/DT
Japanese/NNP
also/RB
are/VBP
accused/VBN
of/IN
keeping/VBG
their/PRP$
cards/NNS
too/RB
close/RB
to/TO
their/PRP$
vests/NNS
./.
``/``
Some/DT
Japanese/JJ
executives/NNS
are/VBP
not/RB
yet/RB
.../:
comfortable/JJ
about/IN
sharing/VBG
strategic/JJ
information/NN
with/IN
their/PRP$
American/JJ
colleagues/NNS
,/,
''/''
the/DT
researchers/NNS
say/VBP
./.
Americans/NNPS
stay/VBP
longer/RBR
with/IN
Japanese/JJ
firms/NNS
than/IN
American/JJ
companies/NNS
./.
But/CC
they/PRP
think/VBP
promotions/NNS
are/VBP
limited/VBN
./.
THE/DT
HOUSE/NNP
votes/VBZ
down/IN
a/DT
proposal/NN
to/TO
put/VB
pension/NN
plans/NNS
under/IN
the/DT
control/NN
of/IN
joint/JJ
labor-management/NN
boards/NNS
./.
Some/DT
consultants/NNS
had/VBD
insisted/VBN
it/PRP
would/MD
n't/RB
work/VB
./.
LONG-TERM/JJ
care/NN
insurance/NN
gains/VBZ
favor/NN
./.
More/RBR
than/IN
half/PDT
the/DT
people/NNS
surveyed/VBN
for/IN
the/DT
Employee/NNP
Benefit/NNP
Research/NNP
Institute/NNP
say/VBP
they/PRP
would/MD
be/VB
willing/JJ
and/CC
able/JJ
to/TO
pick/VB
up/IN
most/JJS
of/IN
the/DT
cost/NN
of/IN
the/DT
coverage/NN
./.
FRINGE-BENEFIT/JJ
spending/NN
by/IN
small/JJ
and/CC
medium-sized/JJ
employers/NNS
has/VBZ
dropped/VBN
to/TO
25/CD
%/NN
of/IN
payroll/NN
from/IN
29/CD
%/NN
three/CD
years/NNS
ago/IN
,/,
says/VBZ
the/DT
National/NNP
Institute/NNP
of/IN
Business/NNP
Management/NNP
,/,
an/DT
advisory/JJ
service/NN
./.
OUSTED/VBN
EXECUTIVES/NNPS
over/IN
50/CD
years/NNS
old/JJ
take/VBP
slightly/RB
less/JJR
time/NN
than/IN
their/PRP$
younger/JJR
colleagues/NNS
to/TO
find/VB
a/DT
job/NN
--/:
3.23/CD
months/NNS
vs./CC
3.26/CD
for/IN
the/DT
juniors/NNS
--/:
outplacement/NN
firm/NN
Challenger/NNP
,/,
Gray/NNP
&/CC
Christmas/NNP
finds/VBZ
./.
It/PRP
's/VBZ
the/DT
first/JJ
time/NN
in/IN
the/DT
survey/NN
's/POS
15/CD
years/NNS
that/IN
the/DT
over-50/JJ
group/NN
came/VBD
out/IN
ahead/RB
./.
FEAR/NN
OF/IN
AIDS/NNP
hinders/VBZ
hiring/VBG
at/IN
few/JJ
hospitals/NNS
./.
Dedication/NN
runs/VBZ
high/JJ
./.
Wafaa/NNP
El-Sadr/NNP
,/,
who/WP
heads/VBZ
the/DT
AIDS/NNP
program/NN
at/IN
New/NNP
York/NNP
City/NNP
's/POS
Harlem/NNP
Hospital/NNP
Center/NNP
,/,
ca/MD
n't/RB
find/VB
help/NN
./.
``/``
I/PRP
've/VBP
been/VBN
recruiting/VBG
every/DT
single/JJ
day/NN
since/IN
it/PRP
's/VBZ
been/VBN
identified/VBN
that/IN
many/JJ
AIDS/NNP
patients/NNS
come/VBD
from/IN
the/DT
inner/JJ
city/NN
,/,
''/''
she/PRP
says/VBZ
./.
She/PRP
was/VBD
the/DT
only/JJ
staff/NN
physician/NN
available/JJ
to/TO
treat/VB
AIDS/NNP
patients/NNS
last/JJ
summer/NN
and/CC
now/RB
she/PRP
has/VBZ
the/DT
help/NN
of/IN
only/RB
two/CD
doctors/NNS
part/NN
time/NN
./.
Part/NN
of/IN
the/DT
problem/NN
,/,
though/RB
,/,
may/MD
reflect/VB
a/DT
general/JJ
unwillingness/NN
to/TO
work/VB
with/IN
the/DT
urban/JJ
poor/NN
./.
Parkland/NNP
Memorial/NNP
Hospital/NNP
in/IN
Dallas/NNP
says/VBZ
it/PRP
has/VBZ
n't/RB
had/VBN
any/DT
problem/NN
recruiting/VBG
,/,
even/RB
after/IN
a/DT
nurse/NN
contracted/VBD
the/DT
virus/NN
while/IN
injecting/VBG
an/DT
AIDS/NNP
patient/NN
./.
``/``
I/PRP
can/MD
tell/VB
you/PRP
that/IN
nobody/NN
quit/VBD
over/IN
it/PRP
./.
No/DT
one/NN
panicked/VBD
,/,
''/''
a/DT
spokeswoman/NN
says/VBZ
./.
St./NNP
Paul/NNP
Medical/NNP
Center/NNP
,/,
also/RB
in/IN
Dallas/NNP
,/,
sees/VBZ
only/RB
a/DT
``/``
minimal/JJ
erosion/NN
''/''
of/IN
support/NN
staff/NN
due/JJ
to/TO
AIDS/NNP
./.
Yale-New/NNP
Haven/NNP
Hospital/NNP
sees/VBZ
no/DT
problem/NN
,/,
says/VBZ
John/NNP
Fenn/NNP
,/,
the/DT
chief/NN
of/IN
staff/NN
./.
``/``
There/EX
are/VBP
enough/RB
enlightened/VBN
and/CC
spirited/VBN
individuals/NNS
who/WP
know/VBP
their/PRP$
responsibilities/NNS
,/,
''/''
he/PRP
says/VBZ
./.
THE/DT
CHECKOFF/NNP
:/:
At/IN
least/JJS
somebody/NN
gains/VBZ
on/IN
layoffs/NNS
./.
The/DT
Association/NNP
of/IN
Outplacement/NNP
Consulting/NNP
Firms/NNPS
says/VBZ
the/DT
industry/NN
's/POS
volume/NN
has/VBZ
soared/VBN
tenfold/RB
since/IN
1980/CD
,/,
to/TO
$/$
350/CD
million/CD
a/DT
year/NN
.../:
./.
And/CC
somebody/NN
loses/VBZ
on/IN
the/DT
expected/VBN
repeal/NN
of/IN
Section/NN
89/CD
,/,
the/DT
benefits/NNS
test/NN
fought/VBN
by/IN
most/JJS
employers/NNS
./.
Triad/NNP
Solutions/NNPS
says/VBZ
software/NN
producers/NNS
had/VBD
each/DT
invested/VBN
hundreds/NNS
of/IN
thousands/NNS
of/IN
dollars/NNS
in/IN
programs/NNS
that/WDT
now/RB
have/VBP
no/DT
use/NN
./.
Big/JJ
gains/NNS
for/IN
the/DT
ultra-right/JJ
Republicans/NNPS
party/NN
in/IN
Baden-Wuerttemburg/NNP
state/NN
municipal/JJ
elections/NNS
Sunday/NNP
showed/VBD
eroding/VBG
support/NN
for/IN
Chancellor/NNP
Helmut/NNP
Kohl/NNP
in/IN
a/DT
traditional/JJ
bastion/NN
for/IN
his/PRP$
Christian/NNP
Democratic/NNP
Union/NNP
./.
With/IN
ballots/NNS
from/IN
most/JJS
of/IN
the/DT
state/NN
's/POS
major/JJ
cities/NNS
in/IN
by/IN
yesterday/NN
morning/NN
,/,
the/DT
Republicans/NNPS
came/VBD
away/RB
with/IN
10/CD
%/NN
of/IN
the/DT
vote/NN
in/IN
several/JJ
of/IN
the/DT
key/JJ
districts/NNS
./.
With/IN
many/JJ
rural/JJ
districts/NNS
yet/RB
to/TO
report/VB
ballots/NNS
,/,
election/NN
officials/NNS
estimate/VBP
support/NN
for/IN
Christian/NNP
Democrats/NNPS
fell/VBD
an/DT
average/JJ
five/CD
percentage/NN
points/NNS
statewide/RB
./.
The/DT
left-of-center/JJ
Social/NNP
Democrats/NNPS
and/CC
the/DT
environmental/JJ
Greens/NNP
party/NN
posted/VBD
mixed/VBN
results/NNS
./.
Headed/VBN
by/IN
a/DT
former/JJ
Waffen/NNP
SS/NNP
sergeant/NN
and/CC
working/VBG
from/IN
a/DT
nationalistic/JJ
platform/NN
of/IN
anti-foreigner/NN
rhetoric/NN
,/,
the/DT
fledgling/NN
Republicans/NNPS
party/NN
has/VBZ
scored/VBN
surprising/JJ
gains/NNS
in/IN
earlier/JJR
elections/NNS
in/IN
the/DT
states/NNS
of/IN
West/NNP
Berlin/NNP
,/,
Hesse/NNP
and/CC
North-Rhine/NNP
Westphalia/NNP
./.
With/IN
West/NNP
German/NNP
unemployment/NN
remaining/VBG
high/JJ
at/IN
two/CD
million/CD
jobless/JJ
and/CC
the/DT
lack/NN
of/IN
affordable/JJ
housing/NN
becoming/VBG
a/DT
primary/JJ
issue/NN
for/IN
next/JJ
year/NN
's/POS
campaign/NN
,/,
the/DT
Republicans/NNPS
are/VBP
seen/VBN
drawing/VBG
support/NN
for/IN
their/PRP$
``/``
Germans/NNPS
First/JJ
''/''
stand/NN
on/IN
social-welfare/JJ
issues/NNS
./.
Election/NN
analysts/NNS
acknowledge/VBP
that/IN
a/DT
``/``
Red-Green/NNP
''/''
coalition/NN
of/IN
Social/NNP
Democrats/NNPS
and/CC
Greens/NNP
could/MD
edge/VB
out/IN
Chancellor/NNP
Kohl/NNP
's/POS
coalition/NN
in/IN
the/DT
December/NNP
1990/CD
national/JJ
election/NN
if/IN
support/NN
for/IN
the/DT
Republicans/NNPS
continues/VBZ
to/TO
spread/VB
./.
International/JJ
investigators/NNS
urged/VBD
Britain/NNP
to/TO
allow/VB
prosecution/NN
of/IN
suspected/VBN
Nazi/NNP
war/NN
criminals/NNS
who/WP
took/VBD
refuge/NN
there/RB
after/IN
1945/CD
./.
Under/IN
current/JJ
law/NN
,/,
such/JJ
suspects/NNS
are/VBP
immune/JJ
from/IN
prosecution/NN
for/IN
acts/NNS
committed/VBN
while/IN
not/RB
British/JJ
citizens/NNS
./.
``/``
If/IN
we/PRP
're/VBP
not/RB
careful/JJ
we/PRP
could/MD
become/VB
known/VBN
as/IN
a/DT
haven/NN
for/IN
war/NN
criminals/NNS
,/,
''/''
said/VBD
Jeff/NNP
Rooker/NNP
,/,
a/DT
member/NN
of/IN
Parliament/NNP
and/CC
one/CD
of/IN
several/JJ
British/JJ
politicians/NNS
attending/VBG
a/DT
London/NNP
conference/NN
with/IN
government/NN
investigators/NNS
from/IN
the/DT
U.S./NNP
,/,
Canada/NNP
and/CC
Australia/NNP
./.
A/DT
parliamentary/JJ
inquiry/NN
found/VBD
in/IN
July/NNP
that/IN
more/JJR
than/IN
70/CD
people/NNS
living/VBG
in/IN
Britain/NNP
could/MD
have/VB
been/VBN
part/NN
of/IN
death/NN
squads/NNS
that/WDT
roamed/VBD
Nazi-occupied/JJ
Eastern/NNP
Europe/NNP
./.
Parliament/NNP
is/VBZ
expected/VBN
to/TO
discuss/VB
next/JJ
month/NN
whether/IN
to/TO
change/VB
the/DT
law/NN
./.
British/JJ
investigations/NNS
were/VBD
prompted/VBN
by/IN
a/DT
list/NN
of/IN
17/CD
alleged/VBN
war/NN
criminals/NNS
living/VBG
in/IN
Britain/NNP
sent/VBN
to/TO
Prime/NNP
Minister/NNP
Margaret/NNP
Thatcher/NNP
in/IN
October/NNP
1986/CD
by/IN
the/DT
Simon/NNP
Wiesenthal/NNP
Center/NNP
in/IN
Los/NNP
Angeles/NNP
./.
In/IN
a/DT
sign/NN
of/IN
easing/VBG
tension/NN
between/IN
Beijing/NNP
and/CC
Hong/NNP
Kong/NNP
,/,
China/NNP
said/VBD
it/PRP
will/MD
again/RB
take/VB
back/RB
illegal/JJ
immigrants/NNS
caught/VBD
crossing/VBG
into/IN
the/DT
British/JJ
colony/NN
./.
China/NNP
had/VBD
refused/VBN
to/TO
repatriate/VB
citizens/NNS
who/WP
sneaked/VBD
into/IN
Hong/NNP
Kong/NNP
illegally/RB
since/IN
early/RB
this/DT
month/NN
,/,
when/WRB
the/DT
colony/NN
allowed/VBD
a/DT
dissident/JJ
Chinese/JJ
swimmer/NN
to/TO
flee/VB
to/TO
the/DT
U.S/NNP
./.
About/IN
1,100/CD
Chinese/NNP
were/VBD
awaiting/VBG
repatriation/NN
yesterday/NN
./.
Italy/NNP
's/POS
Foreign/NNP
Ministry/NNP
said/VBD
it/PRP
is/VBZ
investigating/VBG
exports/NNS
to/TO
the/DT
Soviet/NNP
Union/NNP
by/IN
an/DT
Ing/NNP
./.
C./NNP
Olivetti/NNP
&/CC
Co./NNP
subsidiary/NN
called/VBN
OCN-PPL/NNP
that/WDT
makes/VBZ
numerically/RB
controlled/VBN
machine/NN
tools/NNS
./.
Although/IN
Italy/NNP
's/POS
investigation/NN
of/IN
whether/IN
Olivetti/NNP
had/VBD
violated/VBN
Western/JJ
export-control/JJ
rules/NNS
had/VBD
previously/RB
been/VBN
made/VBN
known/VBN
,/,
this/DT
marked/VBD
the/DT
first/JJ
time/NN
the/DT
unit/NN
and/CC
product/NN
were/VBD
named/VBN
./.
The/DT
U.S./NNP
is/VBZ
worried/VBN
about/IN
the/DT
convertibility/NN
of/IN
Olivetti/NNP
's/POS
machine/NN
tools/NNS
to/TO
military/JJ
use/NN
./.
However/RB
,/,
an/DT
Olivetti/NNP
spokeswoman/NN
said/VBD
OCN-PPL/NNP
,/,
of/IN
which/WDT
Olivetti/NNP
sold/VBD
the/DT
majority/NN
interest/NN
last/JJ
year/NN
,/,
``/``
does/VBZ
n't/RB
make/VB
equipment/NN
that/WDT
has/VBZ
the/DT
type/NN
of/IN
precision/NN
necessary/JJ
for/IN
sophisticated/JJ
productions/NNS
./.
''/''
Conservationists/NNS
say/VBP
that/IN
drift-net/NN
fishing/NN
threatens/VBZ
to/TO
wipe/VB
out/IN
much/RB
of/IN
the/DT
world/NN
's/POS
tuna/NN
stocks/NNS
in/IN
a/DT
few/JJ
years/NNS
./.
But/CC
the/DT
Japanese/NNP
Fisheries/NNPS
Association/NNP
criticized/VBD
moves/NNS
to/TO
ban/VB
the/DT
practice/NN
in/IN
international/JJ
waters/NNS
./.
``/``
It/PRP
is/VBZ
really/RB
unfortunate/JJ
for/IN
human/JJ
beings/NNS
to/TO
be/VB
swayed/VBN
by/IN
emotional/JJ
discussions/NNS
,/,
''/''
the/DT
association/NN
said/VBD
./.
In/IN
driftnet/NN
,/,
or/CC
``/``
wall/NN
of/IN
death/NN
,/,
''/''
fishing/NN
,/,
fleets/NNS
lay/VBP
nets/NNS
up/IN
to/TO
three/CD
miles/NNS
long/RB
that/DT
trap/NN
almost/RB
everything/NN
in/IN
their/PRP$
path/NN
./.
Earlier/RBR
this/DT
year/NN
,/,
Japan/NNP
said/VBD
it/PRP
would/MD
cut/VB
the/DT
number/NN
of/IN
its/PRP$
drift-net/NN
vessels/NNS
in/IN
the/DT
South/NNP
Pacific/NNP
by/IN
two-thirds/NNS
,/,
or/CC
down/IN
to/TO
20/CD
./.
Workers/NNS
at/IN
Peugeot/NNP
S.A./NNP
's/POS
car/NN
plant/NN
at/IN
Sochaux/NNP
,/,
in/IN
eastern/JJ
France/NNP
,/,
voted/VBD
to/TO
end/VB
a/DT
six-week-old/JJ
strike/NN
that/WDT
has/VBZ
cost/VBN
the/DT
Peugeot/NNP
group/NN
production/NN
of/IN
60,000/CD
automobiles/NNS
,/,
a/DT
company/NN
spokesman/NN
said/VBD
./.
The/DT
strikers/NNS
voted/VBD
to/TO
accept/VB
a/DT
series/NN
of/IN
management/NN
proposals/NNS
that/WDT
will/MD
give/VB
them/PRP
a/DT
higher/JJR
basic/JJ
wage/NN
,/,
better/JJR
profit-sharing/JJ
benefits/NNS
and/CC
bigger/JJR
annual/JJ
bonuses/NNS
./.
The/DT
spokesman/NN
said/VBD
the/DT
vote/NN
at/IN
Sochaux/NNP
is/VBZ
expected/VBN
to/TO
be/VB
followed/VBN
by/IN
a/DT
similar/JJ
move/NN
at/IN
the/DT
company/NN
's/POS
assembly/NN
plant/NN
at/IN
Mulhouse/NNP
,/,
where/WRB
the/DT
number/NN
of/IN
strikers/NNS
has/VBZ
been/VBN
whittled/VBN
down/IN
to/TO
80/CD
./.
About/IN
8,000/CD
National/NNP
Union/NNP
of/IN
Mineworkers/NNPS
members/NNS
resumed/VBD
their/PRP$
strike/NN
against/IN
De/NNP
Beers/NNP
Consolidated/NNP
Mines/NNPS
Ltd./NNP
after/IN
further/JJ
negotiations/NNS
to/TO
settle/VB
a/DT
wage/NN
dispute/NN
broke/VBD
down/IN
./.
Striking/VBG
workers/NNS
,/,
who/WP
began/VBD
striking/VBG
five/CD
diamond/NN
mines/NNS
on/IN
Oct./NNP
13/CD
,/,
had/VBD
returned/VBN
to/TO
work/VB
last/JJ
week/NN
when/WRB
the/DT
union/NN
and/CC
De/NNP
Beers/NNP
arranged/VBD
to/TO
reopen/VB
negotiations/NNS
./.
A/DT
De/NNP
Beers/NNP
spokesman/NN
said/VBD
yesterday/NN
the/DT
company/NN
had/VBD
offered/VBN
to/TO
increase/VB
the/DT
minimum/JJ
wage/NN
by/IN
18/CD
%/NN
,/,
while/IN
the/DT
union/NN
was/VBD
demanding/VBG
26.6/CD
%/NN
./.
Before/IN
the/DT
two/CD
parties/NNS
resumed/VBD
talks/NNS
last/JJ
week/NN
,/,
De/NNP
Beers/NNP
offered/VBD
17/CD
%/NN
and/CC
the/DT
union/NN
wanted/VBD
37.6/CD
%/NN
./.
China/NNP
's/POS
People/NNS
's/POS
Daily/NNP
took/VBD
note/NN
of/IN
the/DT
growing/VBG
problem/NN
of/IN
computer/NN
fraud/NN
./.
Since/IN
the/DT
first/JJ
fraud/NN
was/VBD
discovered/VBN
in/IN
July/NNP
1986/CD
at/IN
an/DT
office/NN
of/IN
the/DT
People/NNPS
's/POS
Bank/NNP
of/IN
China/NNP
in/IN
Shenzhen/NNP
,/,
15/CD
major/JJ
cases/NNS
have/VBP
been/VBN
found/VBN
,/,
the/DT
paper/NN
said/VBD
;/:
the/DT
biggest/JJS
was/VBD
the/DT
theft/NN
of/IN
$/$
235,000/CD
from/IN
a/DT
bank/NN
in/IN
Chengdu/NNP
in/IN
March/NNP
1988/CD
./.
The/DT
number/NN
of/IN
computers/NNS
has/VBZ
mushroomed/VBN
in/IN
recent/JJ
years/NNS
,/,
with/IN
10,000/CD
in/IN
use/NN
,/,
as/RB
well/RB
as/IN
30,000/CD
miniature/JJ
models/NNS
./.
But/CC
security/NN
systems/NNS
,/,
effective/JJ
management/NN
controls/NNS
and/CC
regulations/NNS
to/TO
govern/VB
their/PRP$
use/NN
have/VBP
not/RB
kept/VBN
pace/NN
,/,
the/DT
People/NNPS
's/POS
Daily/NNP
said/VBD
./.
Besides/IN
money/NN
,/,
criminals/NNS
have/VBP
also/RB
used/VBN
computers/NNS
to/TO
steal/VB
secrets/NNS
and/CC
intelligence/NN
,/,
the/DT
newspaper/NN
said/VBD
,/,
but/CC
it/PRP
gave/VBD
no/DT
more/JJR
details/NNS
./.
Japanese/JJ
tourists/NNS
will/MD
be/VB
told/VBN
to/TO
take/VB
care/NN
when/WRB
photographing/VBG
earthquake/NN
damage/NN
in/IN
San/NNP
Francisco/NNP
,/,
the/DT
Japan/NNP
Association/NNP
of/IN
Travel/NNP
Agents/NNPS
said/VBD
./.
The/DT
association/NN
issued/VBD
an/DT
advisory/NN
to/TO
its/PRP$
1,685/CD
member/NN
agencies/NNS
following/VBG
a/DT
report/NN
from/IN
the/DT
Foreign/NNP
Ministry/NNP
that/IN
picture-taking/NN
by/IN
Japanese/JJ
tourists/NNS
in/IN
earthquake-stricken/JJ
areas/NNS
was/VBD
causing/VBG
ill/JJ
feeling/NN
among/IN
local/JJ
residents/NNS
.../:
./.
Tass/NNP
said/VBD
Lenin/NNP
's/POS
tomb/NN
in/IN
Red/NNP
Square/NNP
will/MD
be/VB
closed/VBN
from/IN
Nov./NNP
10/CD
to/TO
Jan./NNP
15/CD
for/IN
essential/JJ
maintenance/NN
./.
The/DT
red/JJ
granite/NN
mausoleum/NN
draws/VBZ
thousands/NNS
of/IN
visitors/NNS
daily/RB
./.
Fatalities/NNS
on/IN
rural/JJ
interstates/NNS
rose/VBD
33/CD
%/NN
between/IN
1986/CD
and/CC
last/JJ
year/NN
,/,
the/DT
National/NNP
Highway/NNP
Traffic/NNP
Safety/NNP
Administration/NNP
said/VBD
in/IN
a/DT
report/NN
on/IN
the/DT
impact/NN
of/IN
the/DT
65/CD
miles-per-hour/JJ
speed/NN
limit/NN
on/IN
those/DT
roads/NNS
./.
The/DT
report/NN
to/TO
Congress/NNP
said/VBD
that/IN
fatalities/NNS
rose/VBD
18/CD
%/NN
in/IN
1987/CD
and/CC
13/CD
%/NN
in/IN
1988/CD
on/IN
rural/JJ
interstates/NNS
./.
The/DT
1987/CD
highway/NN
bill/NN
permitted/VBD
states/NNS
to/TO
raise/VB
the/DT
speed/NN
limit/NN
to/TO
65/CD
mph/NN
from/IN
55/CD
mph/NN
on/IN
interstate/JJ
roads/NNS
,/,
which/WDT
are/VBP
defined/VBN
as/IN
highways/NNS
that/WDT
pass/VBP
through/IN
areas/NNS
with/IN
fewer/JJR
than/IN
50,000/CD
people/NNS
./.
Since/IN
1987/CD
,/,
40/CD
states/NNS
have/VBP
increased/VBN
the/DT
speed/NN
limit/NN
on/IN
rural/JJ
interstates/NNS
./.
``/``
About/IN
one-third/NN
of/IN
the/DT
fatality/NN
increase/NN
is/VBZ
attributed/VBN
to/TO
greater/JJR
travel/NN
,/,
and/CC
about/IN
two-thirds/NNS
is/VBZ
attributed/VBN
to/TO
other/JJ
factors/NNS
greater/JJR
speed/NN
NHTSA/NNP
./.
The/DT
report/NN
showed/VBD
that/IN
deaths/NNS
on/IN
urban/JJ
interstate/JJ
highways/NNS
rose/VBD
7/CD
%/NN
between/IN
1986/CD
and/CC
last/JJ
year/NN
,/,
while/IN
fatalities/NNS
on/IN
non-interstate/JJ
roads/NNS
were/VBD
about/IN
the/DT
same/JJ
in/IN
1988/CD
as/IN
in/IN
1986/CD
./.
In/IN
states/NNS
that/WDT
raised/VBD
the/DT
speed/NN
limit/NN
on/IN
rural/JJ
interstates/NNS
,/,
the/DT
fatality/NN
rate/NN
rose/VBD
about/IN
18/CD
%/NN
to/TO
1.7/CD
deaths/NNS
per/IN
100/CD
million/CD
miles/NNS
traveled/VBN
between/IN
1986/CD
and/CC
1988/CD
./.
In/IN
contrast/NN
,/,
the/DT
fatality/NN
rate/NN
in/IN
the/DT
states/NNS
that/WDT
retained/VBD
the/DT
55/CD
mph/NN
limit/NN
was/VBD
0.9/CD
last/JJ
year/NN
,/,
the/DT
same/JJ
as/IN
in/IN
1986/CD
./.
Well-Seasoned/JJ
Reasoning/NN
``/``
Food/NN
manufacturer/NN
changes/VBZ
catsup/NN
'/''
to/TO
`/``
ketchup/NN
,/,
'/''
saying/VBG
that/DT
's/VBZ
the/DT
spelling/NN
people/NNS
now/RB
prefer/VBP
./.
''/''
--/:
WSJ/NNP
Business/NNP
Bulletin/NNP
Public/JJ
preference/NN
is/VBZ
important/JJ
,/,
So/IN
product/NN
names/NNS
should/MD
match/VB
up/IN
,/,
And/CC
firms/NNS
that/WDT
find/VBP
they/PRP
're/VBP
lagging/VBG
behind/IN
Should/MD
now/RB
take/VB
steps/NNS
to/TO
ketchup/VB|IN
!/.
--/:
George/NNP
O./NNP
Ludcke/NNP
./.
Judge/VB
Not/RB
How/WRB
easy/JJ
it/PRP
is/VBZ
To/TO
attack/VB
others/NNS
'/POS
views/NNS
Without/IN
ever/RB
setting/VBG
A/DT
foot/NN
in/IN
their/PRP$
shoes/NNS
!/.
--/:
G./NNP
Sterling/NNP
Leiby/NNP
./.
Daffynition/NN
Money-making/JJ
course/NN
:/:
wad-working/NN
./.
--/:
Thomas/NNP
Henry/NNP
./.
In/IN
an/DT
Oct./NNP
10/CD
editorial-page/NN
article/NN
,/,
``/``
It/PRP
's/VBZ
the/DT
World/NNP
Bank/NNP
's/POS
Turn/NN
to/TO
Adjust/VB
,/,
''/''
Paul/NNP
Craig/NNP
Roberts/NNP
lays/VBZ
most/JJS
of/IN
the/DT
blame/NN
for/IN
what/WP
ails/NNS
developing/VBG
countries/NNS
at/IN
the/DT
doorstep/NN
of/IN
the/DT
World/NNP
Bank/NNP
./.
The/DT
article/NN
is/VBZ
,/,
unfortunately/RB
,/,
replete/JJ
with/IN
outrageous/JJ
distortions/NNS
./.
One/CD
of/IN
Mr./NNP
Roberts/NNP
's/POS
observations/NNS
is/VBZ
that/IN
the/DT
Bank/NNP
's/POS
own/JJ
loan/NN
portfolio/NN
is/VBZ
in/IN
deep/JJ
trouble/NN
because/IN
of/IN
its/PRP$
lending/NN
to/TO
developing/VBG
countries/NNS
./.
This/DT
is/VBZ
just/RB
not/RB
so/RB
./.
The/DT
reality/NN
is/VBZ
that/IN
Bank/NNP
finances/NNS
are/VBP
rock/NN
solid/JJ
./.
As/IN
of/IN
June/NNP
30/CD
,/,
1989/CD
--/:
the/DT
day/NN
our/PRP$
past/NN
fiscal/JJ
year/NN
came/VBD
to/TO
a/DT
close/NN
--/:
only/RB
4.1/CD
%/NN
of/IN
the/DT
Bank/NNP
's/POS
portfolio/NN
was/VBD
affected/VBN
by/IN
arrears/NNS
of/IN
over/IN
six/CD
months/NNS
./.
This/DT
is/VBZ
an/DT
enviably/RB
low/JJ
level/NN
./.
Moreover/RB
,/,
the/DT
Bank/NNP
follows/VBZ
a/DT
prudent/JJ
provisioning/VBG
policy/NN
and/CC
has/VBZ
set/VBN
aside/RB
$/$
800/CD
million/CD
against/IN
possible/JJ
loan/NN
losses/NNS
./.
For/IN
the/DT
same/JJ
fiscal/JJ
year/NN
,/,
by/IN
the/DT
way/NN
,/,
the/DT
Bank/NNP
's/POS
net/JJ
income/NN
was/VBD
a/DT
robust/JJ
$/$
1.1/CD
billion/CD
after/IN
provisions/NNS
./.
Because/IN
of/IN
the/DT
business-like/JJ
manner/NN
in/IN
which/WDT
the/DT
Bank/NNP
goes/VBZ
about/IN
development/NN
,/,
financial/JJ
markets/NNS
have/VBP
confidence/NN
in/IN
it/PRP
./.
This/DT
helps/VBZ
explain/VB
the/DT
triple-A/JJ
rating/NN
enjoyed/VBN
by/IN
our/PRP$
bonds/NNS
and/CC
our/PRP$
ability/NN
to/TO
borrow/VB
$/$
9.3/CD
billion/CD
in/IN
fiscal/JJ
1989/CD
on/IN
the/DT
most/RBS
advantageous/JJ
terms/NNS
./.
Another/DT
of/IN
Mr./NNP
Roberts/NNP
's/POS
criticisms/NNS
is/VBZ
that/DT
Bank/NNP
lending/NN
has/VBZ
done/VBN
more/JJR
harm/NN
than/IN
good/JJ
``/``
by/IN
implanting/VBG
the/DT
wrong/JJ
incentives/NNS
and/CC
deflecting/VBG
energy/NN
away/RB
from/IN
economic/JJ
development/NN
./.
''/''
Here/RB
,/,
too/RB
,/,
Mr./NNP
Roberts/NNP
is/VBZ
way/NN
off/IN
the/DT
mark/NN
./.
The/DT
reality/NN
is/VBZ
that/IN
Bank/NNP
loans/NNS
have/VBP
been/VBN
linked/VBN
to/TO
policy/NN
improvements/NNS
for/IN
40/CD
years/NNS
./.
Our/PRP$
traditional/JJ
project/NN
loans/NNS
have/VBP
,/,
for/IN
instance/NN
,/,
supported/VBN
sensible/JJ
energy/NN
pricing/NN
in/IN
the/DT
power/NN
sector/NN
,/,
sound/JJ
interest-rate/JJ
policies/NNS
in/IN
the/DT
credit/NN
area/NN
and/CC
the/DT
operation/NN
of/IN
public/JJ
utilities/NNS
as/IN
efficient/JJ
,/,
autonomous/JJ
agencies/NNS
./.
By/IN
and/CC
large/JJ
,/,
these/DT
efforts/NNS
have/VBP
borne/VBN
fruit/NN
./.
In/IN
my/PRP$
home/NN
region/NN
,/,
Latin/NNP
America/NNP
,/,
much/RB
of/IN
the/DT
existing/VBG
infrastructure/NN
base/NN
--/:
an/DT
important/JJ
building/NN
block/NN
for/IN
development/NN
--/:
has/VBZ
been/VBN
financed/VBN
by/IN
the/DT
World/NNP
Bank/NNP
./.
Mr./NNP
Roberts/NNP
also/RB
takes/VBZ
a/DT
swipe/NN
at/IN
the/DT
Bank/NNP
's/POS
adjustment/NN
lending/NN
./.
What/WP
are/VBP
the/DT
facts/NNS
on/IN
this/DT
type/NN
of/IN
lending/NN
?/.
The/DT
Bank/NNP
has/VBZ
been/VBN
making/VBG
adjustment/NN
loans/NNS
for/IN
10/CD
years/NNS
./.
As/IN
their/PRP$
name/NN
implies/VBZ
,/,
these/DT
operations/NNS
are/VBP
linked/VBN
to/TO
far-reaching/JJ
policy/NN
reforms/NNS
that/WDT
aim/VBP
at/IN
helping/VBG
borrowing/NN
countries/NNS
get/VB
back/RB
on/IN
the/DT
growth/NN
path/NN
and/CC
at/IN
enhancing/VBG
their/PRP$
credit-worthiness/NN
./.
Typically/RB
,/,
these/DT
measures/NNS
include/VBP
reforms/NNS
to/TO
downsize/VB
the/DT
role/NN
of/IN
government/NN
and/CC
parastatals/NNS
in/IN
the/DT
economy/NN
,/,
to/TO
open/VB
up/IN
inward-looking/JJ
economies/NNS
to/TO
international/JJ
competition/NN
and/CC
to/TO
promote/VB
the/DT
development/NN
of/IN
a/DT
vigorous/JJ
private/JJ
sector/NN
./.
Support/NN
for/IN
the/DT
private/JJ
sector/NN
has/VBZ
been/VBN
a/DT
longstanding/JJ
concern/NN
of/IN
the/DT
Bank/NNP
's/POS
./.
Over/IN
the/DT
years/NNS
,/,
it/PRP
has/VBZ
helped/VBN
encourage/VB
investments/NNS
by/IN
entrepreneurs/NNS
in/IN
the/DT
Third/NNP
World/NNP
through/IN
its/PRP$
extensive/JJ
credit/NN
operations/NNS
and/CC
through/IN
loans/NNS
and/CC
investments/NNS
by/IN
the/DT
International/NNP
Finance/NNP
Corp/NNP
./.
Most/RBS
recently/RB
,/,
the/DT
Bank/NNP
Group/NNP
has/VBZ
been/VBN
expanded/VBN
to/TO
include/VB
the/DT
Multilateral/NNP
Investment/NNP
Guarantee/NNP
Agency/NNP
to/TO
stimulate/VB
direct/JJ
foreign/JJ
investment/NN
in/IN
developing/VBG
countries/NNS
by/IN
offering/VBG
guarantees/NNS
against/IN
noncommercial/JJ
risk/NN
and/CC
advice/NN
to/TO
member/NN
countries/NNS
on/IN
how/WRB
to/TO
improve/VB
their/PRP$
business/NN
climate/NN
./.
These/DT
are/VBP
not/RB
the/DT
actions/NNS
of/IN
a/DT
development/NN
agency/NN
wed/VBN
to/TO
central/JJ
planning/NN
and/CC
to/TO
the/DT
concentration/NN
of/IN
investment/NN
decisions/NNS
in/IN
the/DT
hands/NNS
of/IN
government/NN
,/,
as/IN
Mr./NNP
Roberts/NNP
alleges/VBZ
./.
Rather/RB
,/,
they/PRP
reflect/VBP
the/DT
Bank/NNP
's/POS
time-tested/JJ
,/,
pragmatic/JJ
approach/NN
,/,
which/WDT
aims/VBZ
at/IN
ensuring/VBG
that/IN
developing/VBG
countries/NNS
put/VBP
their/PRP$
scarce/JJ
resources/NNS
to/TO
the/DT
best/JJS
possible/JJ
use/NN
./.
Francisco/NNP
Aguirre-Sacasa/NNP
Director/NNP
,/,
External/NNP
Affairs/NNPS
The/DT
World/NNP
Bank/NNP
Washington/NNP
The/DT
government/NN
said/VBD
it/PRP
would/MD
streamline/VB
its/PRP$
enormous/JJ
and/CC
often-criticized/JJ
food/NN
marketing/NN
and/CC
distribution/NN
network/NN
,/,
Compania/NNP
Nacional/NNP
de/IN
Subsistencias/NNP
Populares/NNP
,/,
or/CC
Conasupo/NNP
./.
Conasupo/NNP
Director/NNP
Ignacio/NNP
Ovalle/NNP
Fernandez/NNP
said/VBD
the/DT
agency/NN
will/MD
sell/VB
589/CD
midsized/JJ
supermarkets/NNS
and/CC
several/JJ
food-production/NN
plants/NNS
and/CC
warehouses/NNS
beginning/VBG
early/JJ
next/JJ
year/NN
./.
The/DT
agency/NN
will/MD
withdraw/VB
from/IN
the/DT
production/NN
of/IN
nine/CD
food/NN
products/NNS
,/,
maintaining/VBG
production/NN
of/IN
the/DT
two/CD
most/RBS
important/JJ
ones/NNS
,/,
corn/NN
and/CC
milk/NN
./.
Mr./NNP
Ovalle/NNP
also/RB
said/VBD
Conasupo/NNP
will/MD
cut/VB
back/JJ
subsidies/NNS
to/TO
producers/NNS
of/IN
nonessential/JJ
farm/NN
products/NNS
and/CC
close/VB
retail/JJ
outlets/NNS
in/IN
wealthy/JJ
neighborhoods/NNS
./.
The/DT
agency/NN
's/POS
workers/NNS
and/CC
private/JJ
companies/NNS
would/MD
be/VB
allowed/VBN
to/TO
bid/VB
for/IN
the/DT
assets/NNS
up/IN
for/IN
sale/NN
./.
Conasupo/NNP
controls/VBZ
prices/NNS
on/IN
agricultural/JJ
goods/NNS
and/CC
operates/VBZ
retail/JJ
outlets/NNS
where/WRB
basic/JJ
consumer/NN
items/NNS
are/VBP
sold/VBN
at/IN
state-subsidized/JJ
prices/NNS
./.
Business/NN
leaders/NNS
have/VBP
long/RB
criticized/VBN
the/DT
agency/NN
as/IN
a/DT
leading/VBG
example/NN
of/IN
bureacratic/JJ
waste/NN
./.
Private-sector/JJ
leaders/NNS
praised/VBD
the/DT
Conasupo/NNP
restructuring/NN
./.
But/CC
most/JJS
economists/NNS
doubt/VBP
the/DT
streamlining/VBG
would/MD
cut/VB
deeply/RB
into/IN
Conasupo/NNP
government/NN
subsidy/NN
,/,
which/WDT
largely/RB
goes/VBZ
to/TO
reduce/VB
consumer/NN
prices/NNS
for/IN
corn/NN
and/CC
milk/NN
./.
The/DT
Food/NNP
and/CC
Drug/NNP
Administration/NNP
banned/VBD
all/DT
imports/NNS
of/IN
mushrooms/NNS
from/IN
China/NNP
in/IN
response/NN
to/TO
a/DT
rash/NN
of/IN
food-poisoning/JJ
outbreaks/NNS
linked/VBN
to/TO
canned/VBN
Chinese/JJ
mushrooms/NNS
./.
``/``
The/DT
agency/NN
has/VBZ
concluded/VBN
that/DT
contamination/NN
may/MD
be/VB
widespread/JJ
throughout/IN
the/DT
mushroom-processing/JJ
industry/NN
in/IN
China/NNP
,/,
''/''
an/DT
FDA/NNP
spokesman/NN
said/VBD
yesterday/NN
./.
The/DT
agency/NN
wo/MD
n't/RB
allow/VB
mushrooms/NNS
that/WDT
were/VBD
canned/VBN
or/CC
packed/VBN
in/IN
brine/NN
at/IN
any/DT
Chinese/JJ
plant/NN
to/TO
enter/VB
the/DT
U.S./NNP
until/IN
``/``
satisfactory/JJ
sanitation-control/JJ
measures/NNS
are/VBP
implemented/VBN
in/IN
China/NNP
to/TO
prevent/VB
''/''
bacterial/JJ
contamination/NN
./.
On/IN
May/NNP
19/CD
,/,
the/DT
FDA/NNP
began/VBD
detaining/VBG
Chinese/JJ
mushrooms/NNS
in/IN
68-ounce/JJ
cans/NNS
after/IN
more/RBR
than/IN
100/CD
people/NNS
in/IN
Mississippi/NNP
,/,
New/NNP
York/NNP
and/CC
Pennsylvania/NNP
became/VBD
ill/RB
from/IN
eating/VBG
tainted/VBN
mushrooms/NNS
./.
In/IN
subsequent/JJ
tests/NNS
,/,
the/DT
agency/NN
found/VBD
smaller-size/JJ
cans/NNS
from/IN
several/JJ
Chinese/JJ
plants/NNS
to/TO
be/VB
similarly/RB
contaminated/VBN
./.
The/DT
outbreaks/NNS
were/VBD
traced/VBN
to/TO
staphylococcus/NN
aureus/NN
,/,
a/DT
type/NN
of/IN
bacteria/NNS
that/WDT
produces/VBZ
a/DT
toxin/NN
capable/JJ
of/IN
surviving/VBG
the/DT
high/JJ
temperatures/NNS
used/VBN
in/IN
canning/VBG
vegetables/NNS
./.
A/DT
recall/NN
of/IN
the/DT
mushrooms/NNS
blamed/VBN
for/IN
the/DT
food/NN
poisoning/NN
began/VBD
in/IN
early/JJ
March/NNP
./.
In/IN
1987/CD
,/,
China/NNP
exported/VBD
65/CD
million/CD
pounds/NNS
of/IN
mushrooms/NNS
,/,
valued/VBN
at/IN
$/$
47/CD
million/CD
,/,
to/TO
the/DT
U.S/NNP
./.
The/DT
shipments/NNS
went/VBD
mostly/RB
to/TO
food-service/JJ
distributors/NNS
that/WDT
supply/VBP
pizzerias/NNS
and/CC
restaurants/NNS
./.
A/DT
spokesman/NN
for/IN
the/DT
Chinese/NNP
Embassy/NNP
here/RB
said/VBD
that/IN
the/DT
Beijing/NNP
government/NN
has/VBZ
taken/VBN
``/``
many/JJ
effective/JJ
measures/NNS
''/''
to/TO
stop/VB
the/DT
mushroom/NN
contamination/NN
and/CC
is/VBZ
further/RB
investigating/VBG
the/DT
underlying/VBG
causes/NNS
./.
He/PRP
predicted/VBD
the/DT
problem/NN
will/MD
be/VB
solved/VBN
``/``
very/RB
soon/RB
./.
''/''
Your/PRP$
Sept./NNP
26/CD
``/``
Politics/NNPS
&/CC
Policy/NNP
''/''
article/NN
about/IN
William/NNP
Bennett/NNP
's/POS
Emergency/NNP
Drug/NNP
Plan/NNP
for/IN
Washington/NNP
gives/VBZ
the/DT
impression/NN
that/IN
the/DT
FBI/NNP
has/VBZ
not/RB
been/VBN
nor/CC
is/VBZ
actively/RB
involved/VBN
./.
This/DT
is/VBZ
not/RB
the/DT
case/NN
./.
The/DT
FBI/NNP
is/VBZ
very/RB
supportive/JJ
of/IN
and/CC
an/DT
active/JJ
participant/NN
in/IN
Mr./NNP
Bennett/NNP
's/POS
initiative/NN
./.
It/PRP
was/VBD
agreed/VBN
at/IN
the/DT
outset/NN
of/IN
the/DT
Washington/NNP
Drug/NNP
Initiative/NNP
that/IN
the/DT
FBI/NNP
's/POS
role/NN
would/MD
be/VB
to/TO
continue/VB
targeting/VBG
the/DT
major/JJ
drug/NN
traffickers/NNS
through/IN
our/PRP$
National/NNP
Drug/NNP
Strategy/NNP
./.
Through/IN
these/DT
investigations/NNS
we/PRP
do/VBP
not/RB
focus/VB
on/IN
the/DT
street/NN
drug/NN
user/NN
,/,
but/CC
rather/RB
we/PRP
target/VBP
and/CC
attack/VBP
major/JJ
drug-trafficking/JJ
organizations/NNS
that/WDT
control/VBP
a/DT
large/JJ
segment/NN
of/IN
the/DT
drug/NN
market/NN
./.
The/DT
trial/NN
of/IN
Raful/NNP
Edmond/NNP
III/NNP
in/IN
Washington/NNP
serves/VBZ
to/TO
highlight/VB
our/PRP$
efforts/NNS
in/IN
this/DT
area/NN
and/CC
the/DT
results/NNS
achieved/VBN
through/IN
our/PRP$
excellent/JJ
working/VBG
relationship/NN
with/IN
the/DT
Drug/NNP
Enforcement/NNP
Administration/NNP
and/CC
the/DT
Metropolitan/NNP
Police/NNP
Department/NNP
MPD/NNP
The/DT
FBI/NNP
's/POS
role/NN
is/VBZ
to/TO
complement/VB
the/DT
D.C./NNP
initiative/NN
through/IN
not/RB
only/RB
these/DT
major/JJ
trafficking/NN
investigations/NNS
,/,
but/CC
also/RB
by/IN
providing/VBG
a/DT
full/JJ
range/NN
of/IN
services/NNS
through/IN
various/JJ
task/NN
forces/NNS
and/CC
our/PRP$
contacts/NNS
with/IN
local/JJ
police/NN
squads/NNS
handling/VBG
drug-related/JJ
crimes/NNS
./.
In/IN
fact/NN
,/,
we/PRP
have/VBP
agents/NNS
assigned/VBN
full/JJ
time/NN
to/TO
assist/VB
the/DT
MPD/NNP
in/IN
drug-related/JJ
crimes/NNS
such/JJ
as/IN
homicide/NN
and/CC
other/JJ
crimes/NNS
of/IN
violence/NN
./.
Milt/NNP
Ahlerich/NNP
Assistant/NNP
Director/NNP
Office/NNP
of/IN
Public/NNP
Affairs/NNPS
Federal/NNP
Bureau/NNP
of/IN
Investigation/NNP
Washington/NNP
Ramada/NNP
Inc./NNP
revised/VBD
the/DT
terms/NNS
of/IN
its/PRP$
restructuring/NN
and/CC
extended/VBN
to/TO
Feb./NNP
28/CD
,/,
1990/CD
,/,
the/DT
deadline/NN
to/TO
complete/VB
the/DT
sale/NN
of/IN
its/PRP$
hotel/NN
business/NN
to/TO
New/NNP
World/NNP
Development/NNP
Co./NNP
of/IN
Hong/NNP
Kong/NNP
and/CC
Prime/NNP
Motor/NNP
Inns/NNPS
Inc./NNP
of/IN
Fairfield/NNP
,/,
N.J/NNP
./.
Ramada/NNP
's/POS
previous/JJ
plan/NN
was/VBD
derailed/VBN
by/IN
upheaval/NN
in/IN
the/DT
junk-bond/JJ
market/NN
that/WDT
hindered/VBD
the/DT
offering/NN
of/IN
$/$
400/CD
million/CD
in/IN
high-yield/JJ
securities/NNS
of/IN
Aztar/NNP
Corp./NNP
,/,
the/DT
new/JJ
company/NN
that/WDT
will/MD
operate/VB
Ramada/NNP
's/POS
casinos/NNS
in/IN
Nevada/NNP
and/CC
Atlantic/NNP
City/NNP
,/,
Under/IN
the/DT
new/JJ
terms/NNS
,/,
New/NNP
World/NNP
will/MD
still/RB
pay/VB
$/$
540/CD
million/CD
for/IN
Ramada/NNP
's/POS
hotel/NN
business/NN
,/,
subject/JJ
to/TO
adjustment/NN
at/IN
closing/VBG
,/,
but/CC
Ramada/NNP
will/MD
now/RB
reimburse/VB
New/NNP
World/NNP
for/IN
$/$
10/CD
million/CD
in/IN
expenses/NNS
./.
Prime/NNP
will/MD
still/RB
manage/VB
Ramada/NNP
's/POS
domestic/JJ
franchise/NN
system/NN
when/WRB
the/DT
sale/NN
closes/VBZ
./.
Revised/VBN
terms/NNS
call/VBP
for/IN
each/DT
Ramada/NNP
common/JJ
share/NN
to/TO
be/VB
exchanged/VBN
for/IN
$/$
1/CD
in/IN
cash/NN
,/,
subject/JJ
to/TO
possible/JJ
reduction/NN
,/,
and/CC
one/CD
share/NN
of/IN
Aztar/NNP
common/JJ
stock/NN
./.
Shareholders/NNS
will/MD
also/RB
receive/VB
one/CD
cent/NN
per/IN
share/NN
for/IN
the/DT
redemption/NN
of/IN
preferred/VBN
stock/NN
purchase/NN
rights/NNS
./.
The/DT
cash/NN
payout/NN
will/MD
be/VB
reduced/VBN
by/IN
40/CD
%/NN
of/IN
any/DT
amount/NN
by/IN
which/WDT
the/DT
weighted/JJ
mean/JJ
price/NN
of/IN
Ramada/NNP
's/POS
common/JJ
stock/NN
exceeds/VBZ
$/$
14/CD
on/IN
the/DT
day/NN
the/DT
transaction/NN
closes/VBZ
./.
The/DT
provision/NN
will/MD
help/VB
provide/VB
for/IN
tax/NN
liabilities/NNS
that/WDT
may/MD
stem/VB
from/IN
the/DT
restructuring/NN
./.
Ramada/NNP
's/POS
stock/NN
rose/VBD
87.5/CD
cents/NNS
on/IN
the/DT
news/NN
to/TO
close/VB
at/IN
$/$
11.25/CD
in/IN
composite/JJ
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
trading/NN
./.
The/DT
announcement/NN
dispelled/VBD
some/DT
Wall/NNP
Street/NNP
observers/NNS
'/POS
fears/NNS
that/IN
New/NNP
World/NNP
might/MD
demand/VB
a/DT
huge/JJ
premium/NN
for/IN
the/DT
delay/NN
,/,
or/CC
scrap/VB
the/DT
deal/NN
entirely/RB
./.
The/DT
previous/JJ
deadline/NN
to/TO
complete/VB
the/DT
sale/NN
was/VBD
Nov./NNP
30/CD
./.
One/CD
major/JJ
advantage/NN
of/IN
the/DT
revised/VBN
plan/NN
is/VBZ
that/IN
Aztar/NNP
will/MD
have/VB
far/RB
less/JJR
debt/NN
than/IN
under/IN
the/DT
old/JJ
terms/NNS
./.
``/``
They/PRP
'll/MD
go/VB
from/IN
being/VBG
one/CD
of/IN
the/DT
most/RBS
leveraged/JJ
to/TO
one/CD
of/IN
the/DT
least/RBS
leveraged/JJ
casino/NN
companies/NNS
,/,
''/''
said/VBD
Daniel/NNP
Lee/NNP
,/,
an/DT
analyst/NN
with/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc/NNP
./.
Mr./NNP
Lee/NNP
values/VBZ
the/DT
package/NN
at/IN
between/IN
$/$
15/CD
and/CC
$/$
20/CD
a/DT
share/NN
,/,
based/VBN
on/IN
current/JJ
trading/NN
prices/NNS
of/IN
other/JJ
casino-company/NN
stocks/NNS
./.
The/DT
much-revised/JJ
restructuring/NN
,/,
which/WDT
was/VBD
first/RB
announced/VBN
in/IN
October/NNP
1988/CD
,/,
must/MD
again/RB
be/VB
approved/VBN
by/IN
shareholders/NNS
and/CC
state/NN
casino/NN
regulators/NNS
in/IN
Nevada/NNP
and/CC
New/NNP
Jersey/NNP
./.
Financing/NN
plans/NNS
include/VBP
raising/VBG
$/$
170/CD
million/CD
in/IN
debt/NN
secured/VBN
by/IN
the/DT
company/NN
's/POS
holdings/NNS
in/IN
New/NNP
Jersey/NNP
./.
In/IN
May/NNP
,/,
Ramada/NNP
sold/VBD
its/PRP$
Marie/NNP
Callender/NNP
Pie/NNP
Shops/NNPS
Inc./NNP
unit/NN
to/TO
a/DT
group/NN
of/IN
private/JJ
investors/NNS
as/IN
part/NN
of/IN
its/PRP$
plan/NN
to/TO
focus/VB
on/IN
its/PRP$
casinos/NNS
in/IN
Atlantic/NNP
City/NNP
and/CC
in/IN
Las/NNP
Vegas/NNP
and/CC
Laughlin/NNP
,/,
Nev/NNP
./.
Bond/NN
prices/NNS
took/VBD
the/DT
high/JJ
road/NN
and/CC
stock/NN
prices/NNS
took/VBD
the/DT
low/JJ
road/NN
as/IN
worries/NNS
mounted/VBN
about/IN
the/DT
economy/NN
and/CC
the/DT
junk/NN
bond/NN
market/NN
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
fell/VBD
26.23/CD
points/NNS
to/TO
2662.91/CD
in/IN
sluggish/JJ
trading/NN
./.
But/CC
long-term/JJ
Treasury/NN
bonds/NNS
staged/VBD
a/DT
modest/JJ
rally/NN
,/,
with/IN
prices/NNS
on/IN
most/JJS
issues/NNS
rising/VBG
about/IN
half/PDT
a/DT
point/NN
,/,
or/CC
$/$
5/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
./.
The/DT
dollar/NN
sagged/VBD
against/IN
other/JJ
major/JJ
currencies/NNS
in/IN
lethargic/JJ
trading/NN
./.
Traders/NNS
and/CC
analysts/NNS
said/VBD
the/DT
divergence/NN
between/IN
the/DT
stock/NN
and/CC
bond/NN
markets/NNS
is/VBZ
a/DT
sign/NN
of/IN
growing/VBG
unease/NN
about/IN
the/DT
economic/JJ
outlook/NN
./.
A/DT
sinking/VBG
economy/NN
depresses/VBZ
corporate/JJ
earnings/NNS
and/CC
thus/RB
stock/NN
prices/NNS
,/,
but/CC
it/PRP
buoys/VBZ
bond/NN
prices/NNS
as/IN
interest/NN
rates/NNS
fall/VBP
./.
That/DT
unease/NN
is/VBZ
expected/VBN
to/TO
grow/VB
today/NN
when/WRB
the/DT
government/NN
reports/VBZ
on/IN
September/NNP
durable/JJ
goods/NNS
orders/NNS
and/CC
again/RB
Thursday/NNP
when/WRB
the/DT
first/JJ
assessment/NN
of/IN
third-quarter/JJ
economic/JJ
growth/NN
is/VBZ
released/VBN
./.
Analysts/NNS
say/VBP
they/PRP
think/VBP
durable/JJ
goods/NNS
orders/NNS
fell/VBD
about/IN
1/CD
%/NN
,/,
compared/VBN
with/IN
a/DT
3.9/CD
%/NN
gain/NN
in/IN
August/NNP
,/,
and/CC
that/DT
growth/NN
in/IN
the/DT
third/JJ
quarter/NN
slowed/VBD
to/TO
about/IN
2.3/CD
%/NN
from/IN
the/DT
second/JJ
quarter/NN
's/POS
2.5/CD
%/NN
./.
The/DT
stock/NN
market/NN
's/POS
decline/NN
,/,
coming/VBG
after/IN
a/DT
record/NN
weekly/JJ
gain/NN
of/IN
119.88/CD
points/NNS
,/,
surprised/VBD
some/DT
investors/NNS
./.
But/CC
A.C./NNP
Moore/NNP
,/,
director/NN
of/IN
research/NN
at/IN
Argus/NNP
Research/NNP
,/,
said/VBD
last/JJ
week/NN
's/POS
rally/NN
was/VBD
a/DT
reflex/JJ
reaction/NN
to/TO
the/DT
Oct./NNP
13/CD
stock/NN
market/NN
rout/NN
./.
Overall/RB
,/,
he/PRP
said/VBD
,/,
the/DT
trend/NN
in/IN
stock/NN
prices/NNS
will/MD
be/VB
down/IN
as/IN
the/DT
economy/NN
weakens/VBZ
./.
``/``
We/PRP
think/VBP
we/PRP
're/VBP
on/IN
target/NN
in/IN
looking/VBG
for/IN
renewed/VBN
economic/JJ
deterioration/NN
,/,
''/''
he/PRP
said/VBD
./.
``/``
Corporate/JJ
profits/NNS
are/VBP
going/VBG
to/TO
decrease/VB
faster/RBR
than/IN
interest/NN
rates/NNS
will/MD
fall/VB
,/,
and/CC
the/DT
probability/NN
is/VBZ
that/IN
we/PRP
'll/MD
see/VB
negative/JJ
economic/JJ
growth/NN
in/IN
the/DT
fourth/JJ
quarter/NN
./.
''/''
Hugh/NNP
Johnson/NNP
,/,
chief/NN
investment/NN
officer/NN
at/IN
First/JJ
Albany/NNP
Corp./NNP
,/,
agreed/VBD
that/IN
a/DT
deteriorating/VBG
economy/NN
is/VBZ
worrisome/JJ
,/,
but/CC
he/PRP
said/VBD
the/DT
real/JJ
concern/NN
among/IN
stock/NN
investors/NNS
is/VBZ
that/IN
some/DT
new/JJ
problem/NN
will/MD
crop/VB
up/IN
in/IN
the/DT
junk/NN
bond/NN
market/NN
./.
In/IN
major/JJ
market/NN
activity/NN
:/:
Stock/NNP
prices/NNS
slumped/VBD
in/IN
sluggish/JJ
trading/NN
./.
Volume/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
totaled/VBD
135.9/CD
million/CD
shares/NNS
./.
Declining/VBG
issues/NNS
on/IN
the/DT
Big/NNP
Board/NNP
were/VBD
ahead/RB
of/IN
gainers/NNS
,/,
1,012/CD
to/TO
501/CD
./.
Bond/NN
prices/NNS
rallied/VBD
./.
The/DT
yield/NN
on/IN
the/DT
Treasury/NN
's/POS
benchmark/NN
30-year/JJ
bond/NN
slipped/VBD
to/TO
7.93/CD
%/NN
./.
The/DT
dollar/NN
weakened/VBD
against/IN
most/RBS
other/JJ
major/JJ
currencies/NNS
./.
In/IN
late/JJ
New/NNP
York/NNP
trading/NN
,/,
the/DT
dollar/NN
was/VBD
quoted/VBN
at/IN
1.8470/CD
marks/NNS
and/CC
141.90/CD
yen/NN
,/,
compared/VBN
with/IN
1.8578/CD
marks/NNS
and/CC
142.43/CD
yen/NN
late/JJ
Friday/NNP
./.
The/DT
Wall/NNP
Street/NNP
Journal/NNP
``/``
American/NNP
Way/NNP
of/IN
Buying/NNP
''/''
Survey/NN
consists/VBZ
of/IN
two/CD
separate/JJ
,/,
door-to-door/JJ
nationwide/JJ
polls/NNS
conducted/VBN
for/IN
the/DT
Journal/NNP
by/IN
Peter/NNP
D./NNP
Hart/NNP
Research/NNP
Associates/NNPS
and/CC
the/DT
Roper/NNP
Organization/NNP
./.
The/DT
two/CD
surveys/NNS
,/,
which/WDT
asked/VBD
different/JJ
questions/NNS
,/,
were/VBD
conducted/VBN
using/VBG
national/JJ
random/JJ
probability/NN
samples/NNS
./.
The/DT
poll/NN
conducted/VBN
by/IN
Peter/NNP
D./NNP
Hart/NNP
Research/NNP
Associates/NNPS
interviewed/VBD
2,064/CD
adults/NNS
age/NN
18/CD
and/CC
older/JJR
from/IN
June/NNP
15/CD
to/TO
June/NNP
30/CD
,/,
1989/CD
./.
The/DT
poll/NN
conducted/VBN
by/IN
the/DT
Roper/NNP
Organization/NNP
interviewed/VBD
2,002/CD
adults/NNS
age/NN
18/CD
and/CC
older/JJR
from/IN
July/NNP
7/CD
to/TO
July/NNP
15/CD
,/,
1989/CD
./.
Responses/NNS
were/VBD
weighted/VBN
on/IN
the/DT
basis/NN
of/IN
age/NN
and/CC
gender/NN
to/TO
conform/VB
with/IN
U.S./NNP
Census/NNP
data/NNS
./.
For/IN
each/DT
poll/NN
,/,
the/DT
odds/NNS
are/VBP
19/CD
out/IN
of/IN
20/CD
that/DT
if/IN
pollsters/NNS
had/VBD
sought/VBN
to/TO
survey/VB
every/DT
household/NN
in/IN
the/DT
U.S./NNP
using/VBG
the/DT
same/JJ
questionnaire/NN
,/,
the/DT
findings/NNS
would/MD
differ/VB
from/IN
these/DT
poll/JJ
results/NNS
by/IN
no/DT
more/RBR
than/IN
2/CD
1\/2/CD
percentage/NN
points/NNS
in/IN
either/DT
direction/NN
./.
The/DT
margin/NN
of/IN
error/NN
for/IN
subgroups/NNS
--/:
for/IN
example/NN
,/,
married/VBN
women/NNS
with/IN
children/NNS
at/IN
home/NN
--/:
would/MD
be/VB
larger/JJR
./.
In/IN
addition/NN
,/,
in/IN
any/DT
survey/NN
,/,
there/EX
is/VBZ
always/RB
the/DT
chance/NN
that/IN
other/JJ
factors/NNS
such/JJ
as/IN
question/NN
wording/NN
could/MD
introduce/VB
errors/NNS
into/IN
the/DT
findings/NNS
./.
story/NN
:/:
``/``
The/NNP
American/NNP
Way/NNP
of/IN
Buying/NNP
:/:
Is/VBZ
Buying/VBG
a/DT
Car/NN
a/DT
Choice/NN
or/CC
a/DT
Chore/NN
?/.
--/:
Huge/JJ
Selection/NN
Has/VBZ
Its/PRP$
Pluses/NNS
--/:
And/CC
Its/PRP$
Minuses/NNS
''/''
--/:
WSJ/NNP
Oct./NNP
24/CD
,/,
1989/CD
)/)
Ironically/RB
,/,
American/NNP
Airlines/NNPS
'/POS
attempt/NN
to/TO
lead/VB
industry/NN
prices/NNS
higher/RBR
was/VBD
reported/VBN
in/IN
the/DT
same/JJ
issue/NN
as/IN
your/PRP$
survey/NN
showing/VBG
that/IN
consumers/NNS
had/VBD
the/DT
least/JJS
confidence/NN
in/IN
the/DT
airline/NN
industry/NN
Sept./NNP
20/CD
You/PRP
quote/VBP
Robert/NNP
Crandall/NNP
,/,
chairman/NN
of/IN
American/NNP
's/POS
parent/NN
,/,
AMR/NNP
Corp./NNP
,/,
as/IN
having/VBG
said/VBD
that/IN
discount/NN
deals/NNS
for/IN
big/JJ
customers/NNS
would/MD
be/VB
``/``
dumb/JJ
''/''
because/IN
``/``
you/PRP
will/MD
go/VB
to/TO
Detroit/NNP
because/IN
you/PRP
have/VBP
to/TO
go/VB
to/TO
Detroit/NNP
whether/IN
the/DT
fare/NN
is/VBZ
$/$
175/CD
,/,
$/$
275/CD
or/CC
$/$
375/CD
./.
''/''
Even/RB
if/IN
Mr./NNP
Crandall/NNP
is/VBZ
correct/JJ
,/,
he/PRP
of/IN
all/DT
people/NNS
must/MD
realize/VB
our/PRP$
society/NN
relies/VBZ
on/IN
competition/NN
to/TO
keep/VB
prices/NNS
at/IN
a/DT
competitive/JJ
level/NN
./.
In/IN
1986/CD
,/,
he/PRP
settled/VBD
an/DT
antitrust/JJ
suit/NN
based/VBN
on/IN
a/DT
taped/VBN
telephone/NN
conversation/NN
of/IN
him/PRP
proposing/VBG
to/TO
Braniff/NNP
's/POS
president/NN
that/IN
they/PRP
both/DT
raise/VBP
fares/NNS
20/CD
%/NN
./.
Braniff/NNP
declined/VBD
)/)
./.
When/WRB
I/PRP
asked/VBD
American/NNP
Airlines/NNPS
for/IN
its/PRP$
side/NN
of/IN
the/DT
story/NN
for/IN
use/NN
in/IN
my/PRP$
MBA/NNP
class/NN
,/,
where/WRB
I/PRP
teach/VBP
business/NN
ethics/NNS
,/,
it/PRP
did/VBD
not/RB
respond/VB
./.
Perhaps/RB
the/DT
ethics/NNS
of/IN
an/DT
industry/NN
's/POS
leader/NN
filters/VBZ
down/IN
and/CC
is/VBZ
one/CD
of/IN
the/DT
factors/NNS
that/WDT
ultimately/RB
shapes/VBZ
consumer/NN
trust/NN
in/IN
that/DT
industry/NN
./.
Arnold/NNP
Celnicker/NNP
Assistant/NNP
Professor/NNP
Ohio/NNP
State/NNP
University/NNP
Columbus/NNP
,/,
Ohio/NNP
Meredith/NNP
Corp./NNP
is/VBZ
launching/VBG
a/DT
new/JJ
service/NN
to/TO
offer/VB
advertisers/NNS
package/NN
deals/NNS
combining/VBG
its/PRP$
book/NN
,/,
magazine/NN
and/CC
videocassette/NN
products/NNS
./.
The/DT
Des/NNP
Moines-based/JJ
publisher/NN
said/VBD
it/PRP
created/VBD
a/DT
new/JJ
Custom/NNP
Marketing/NNP
Group/NNP
that/WDT
will/MD
offer/VB
advertisers/NNS
special/JJ
rates/NNS
for/IN
combination/NN
packages/NNS
in/IN
its/PRP$
magazines/NNS
,/,
such/JJ
as/IN
Ladies/NNP
Home/NNP
Journal/NNP
and/CC
Better/NNP
Homes/NNPS
and/CC
Gardens/NNPS
./.
In/IN
addition/NN
,/,
the/DT
group/NN
will/MD
create/VB
custom-designed/JJ
media/NNS
such/JJ
as/IN
cookbooks/NNS
,/,
newspaper/NN
inserts/NNS
and/CC
videos/NNS
for/IN
ad/NN
campaigns/NNS
./.
Earlier/RBR
this/DT
year/NN
,/,
Meredith/NNP
sold/VBD
its/PRP$
first/JJ
such/JJ
package/NN
for/IN
$/$
3/CD
million/CD
to/TO
Kraft/NNP
Inc./NNP
,/,
now/RB
a/DT
unit/NN
of/IN
New/NNP
York-based/JJ
Philip/NNP
Morris/NNP
Cos/NNP
./.
The/DT
Kraft/NNP
package/NN
included/VBD
a/DT
specially/RB
published/VBN
cookbook/NN
,/,
a/DT
national/JJ
free-standing/JJ
insert/NN
in/IN
Sunday/NNP
newspapers/NNS
,/,
and/CC
a/DT
Kraft/NNP
``/``
advertorial/JJ
''/''
section/NN
that/WDT
ran/VBD
in/IN
five/CD
Meredith/NNP
magazines/NNS
./.
Kraft/NNP
recently/RB
agreed/VBD
to/TO
spend/VB
an/DT
additional/JJ
$/$
3/CD
million/CD
on/IN
similar/JJ
programs/NNS
through/IN
1990/CD
./.
Bill/NNP
Murphy/NNP
,/,
director/NN
of/IN
the/DT
new/JJ
marketing/NN
unit/NN
,/,
said/VBD
Meredith/NNP
is/VBZ
negotiating/VBG
other/JJ
large-scale/JJ
packages/NNS
with/IN
leading/VBG
companies/NNS
in/IN
several/JJ
product/NN
categories/NNS
,/,
but/CC
he/PRP
would/MD
n't/RB
disclose/VB
their/PRP$
names/NNS
./.
Sources/NNS
close/RB
to/TO
the/DT
company/NN
and/CC
ad/NN
agencies/NNS
that/WDT
work/VBP
with/IN
Meredith/NNP
said/VBD
leading/VBG
advertisers/NNS
in/IN
consumer/NN
electronics/NNS
,/,
packaged/VBN
goods/NNS
and/CC
automotive/JJ
products/NNS
were/VBD
among/IN
those/DT
negotiating/VBG
ad/NN
packages/NNS
with/IN
the/DT
Meredith/NNP
group/NN
./.
Other/JJ
magazine/NN
publishing/NN
companies/NNS
have/VBP
been/VBN
moving/VBG
in/IN
the/DT
same/JJ
direction/NN
./.
The/DT
New/NNP
York/NNP
Times/NNP
Co./NNP
's/POS
Magazine/NNP
Group/NNP
earlier/RBR
this/DT
year/NN
began/VBD
offering/VBG
advertisers/NNS
extensive/JJ
merchandising/VBG
services/NNS
built/VBN
around/IN
buying/VBG
ad/NN
pages/NNS
in/IN
its/PRP$
Golf/NNP
Digest/NNP
magazine/NN
./.
Time/NNP
Warner/NNP
Inc./NNP
recently/RB
formed/VBD
a/DT
``/``
synergy/NN
department/NN
''/''
to/TO
seek/VB
out/IN
ways/NNS
to/TO
offer/VB
advertisers/NNS
packages/NNS
that/WDT
could/MD
combine/VB
Time/NNP
's/POS
magazines/NNS
with/IN
Warner/NNP
products/NNS
such/JJ
as/IN
videocassettes/NNS
./.
Paul/NNP
DuCharme/NNP
,/,
director/NN
of/IN
media/NNS
services/NNS
at/IN
Grey/NNP
Advertising/NNP
,/,
said/VBD
Meredith/NN
is/VBZ
the/DT
leader/NN
in/IN
providing/VBG
multimedia/NNS
packages/NNS
./.
``/``
They/PRP
may/MD
get/VB
passed/VBN
up/IN
later/RB
when/WRB
other/JJ
publishers/NNS
get/VBP
their/PRP$
acts/NNS
together/RB
,/,
but/CC
for/IN
now/RB
they/PRP
are/VBP
the/DT
quickest/JJS
offering/NN
the/DT
most/RBS
extensive/JJ
plan/NN
,/,
''/''
he/PRP
said/VBD
./.
Mr./NNP
Murphy/NNP
of/IN
Meredith/NNP
said/VBD
one/CD
advertiser/NN
,/,
which/WDT
he/PRP
would/MD
n't/RB
identify/VB
,/,
wants/VBZ
Meredith/NNP
to/TO
provide/VB
ad/NN
pages/NNS
in/IN
seven/CD
Meredith/NNP
magazines/NNS
,/,
publish/VB
an/DT
interior-decorating/JJ
book/NN
that/WDT
will/MD
be/VB
distributed/VBN
at/IN
point/NN
of/IN
purchase/NN
,/,
give/VB
away/RB
a/DT
videotape/NN
on/IN
installation/NN
pointers/NNS
,/,
and/CC
possibly/RB
use/VB
Meredith/NNP
's/POS
Better/NNP
Homes/NNPS
and/CC
Gardens/NNP
'/POS
residential/JJ
real-estate/JJ
agents/NNS
to/TO
distribute/VB
discount-coupon/NN
books/NNS
to/TO
new/JJ
homeowners/NNS
./.
``/``
Five/CD
years/NNS
ago/IN
,/,
magazine/NN
publishers/NNS
would/MD
simply/RB
bid/VB
on/IN
an/DT
advertiser/NN
's/POS
big/JJ
ad/NN
schedule/NN
for/IN
their/PRP$
magazine/NN
,/,
''/''
said/VBD
Mr./NNP
Murphy/NNP
./.
``/``
But/CC
the/DT
marketplace/NN
changed/VBD
./.
Advertisers/NNS
now/RB
say/VBP
`/``
Help/VB
us/PRP
improve/VB
our/PRP$
image/NN
and/CC
extend/VB
our/PRP$
selling/VBG
season/NN
./.
'/''
They/PRP
are/VBP
coming/VBG
to/TO
publishers/NNS
looking/VBG
for/IN
ideas/NNS
./.
''/''
Your/PRP$
Sept./NNP
21/CD
article/NN
``/``
It/PRP
's/VBZ
So/RB
Easy/JJ
to/TO
Get/VB
Burned/VBN
When/WRB
Buying/VBG
a/DT
Small/JJ
Firm/NN
''/''
was/VBD
excellent/JJ
./.
I/PRP
've/VBP
been/VBN
advising/VBG
small/JJ
businesses/NNS
many/JJ
years/NNS
and/CC
have/VBP
lived/VBN
with/IN
the/DT
fact/NN
that/IN
50/CD
%/NN
will/MD
go/VB
out/IN
of/IN
business/NN
within/IN
two/CD
years/NNS
,/,
and/CC
80/CD
%/NN
in/IN
five/CD
years/NNS
./.
The/DT
economic/JJ
loss/NN
,/,
jobs/NNS
lost/VBN
,/,
anguish/NN
,/,
frustration/NN
and/CC
humiliation/NN
are/VBP
beyond/IN
measure/NN
./.
And/CC
most/JJS
of/IN
these/DT
are/VBP
absolutely/RB
unnecessary/JJ
./.
Your/PRP$
article/NN
points/VBZ
out/IN
the/DT
traps/NNS
people/NNS
fall/VBP
into/IN
,/,
but/CC
when/WRB
reviewing/VBG
those/DT
traps/NNS
one/NN
sees/VBZ
just/RB
about/IN
all/DT
of/IN
them/PRP
could/MD
have/VB
been/VBN
avoided/VBN
./.
An/DT
accountant/NN
did/VBD
not/RB
review/VB
the/DT
seller/NN
's/POS
books/NNS
before/IN
buying/VBG
a/DT
business/NN
./.
``/``
I/PRP
guess/VBP
I/PRP
was/VBD
naive/JJ
,/,
''/''
he/PRP
said/VBD
./.
There/EX
is/VBZ
a/DT
more/RBR
descriptive/JJ
word/NN
to/TO
describe/VB
his/PRP$
lapse/NN
of/IN
common/JJ
sense/NN
./.
Corporate/JJ
managers/NNS
who/WP
want/VBP
to/TO
start/VB
their/PRP$
own/JJ
business/NN
are/VBP
the/DT
highest/JJS
failure/NN
risks/NNS
./.
They/PRP
know/VBP
all/PDT
the/DT
answers/NNS
and/CC
are/VBP
not/RB
used/VBN
to/TO
working/VBG
more/RBR
than/IN
40/CD
hours/NNS
a/DT
week/NN
./.
The/DT
blue-collar/JJ
worker/NN
who/WP
decides/VBZ
to/TO
start/VB
a/DT
business/NN
will/MD
listen/VB
and/CC
take/VB
advice/NN
./.
His/PRP$
humility/NN
gives/VBZ
him/PRP
a/DT
much/RB
better/JJR
chance/NN
of/IN
success/NN
./.
A/DT
few/JJ
months/NNS
ago/IN
your/PRP$
paper/NN
reported/VBD
the/DT
results/NNS
of/IN
a/DT
study/NN
to/TO
determine/VB
why/WRB
Asians/NNPS
who/WP
arrive/VBP
in/IN
this/DT
country/NN
without/IN
any/DT
money/NN
,/,
and/CC
unable/JJ
to/TO
speak/VB
English/NNP
,/,
become/VBN
overnight/JJ
successes/NNS
./.
Their/PRP$
``/``
secret/NN
''/''
is/VBZ
that/IN
they/PRP
gather/VBP
a/DT
small/JJ
group/NN
of/IN
advisers/NNS
around/IN
them/PRP
,/,
listen/VBP
to/TO
what/WP
they/PRP
have/VBP
to/TO
say/VB
,/,
prepare/VBP
a/DT
business/NN
plan/NN
and/CC
they/PRP
are/VBP
on/IN
their/PRP$
way/NN
./.
Successful/JJ
American/JJ
business/NN
owners/NNS
do/VBP
the/DT
same/JJ
thing/NN
./.
Unfortunately/RB
,/,
they/PRP
are/VBP
in/IN
the/DT
minority/NN
./.
Avoiding/VBG
failure/NN
is/VBZ
easy/JJ
./.
It/PRP
's/VBZ
unfortunate/JJ
so/IN
many/JJ
must/MD
learn/VB
the/DT
hard/JJ
way/NN
./.
Daniel/NNP
B./NNP
Scully/NNP
Tucson/NNP
,/,
Ariz/NNP
./.
The/DT
management/NN
turnover/NN
at/IN
Reebok/NNP
International/NNP
Ltd./NNP
continued/VBD
with/IN
the/DT
resignation/NN
of/IN
company/NN
president/NN
C./NNP
Joseph/NNP
LaBonte/NNP
,/,
who/WP
joined/VBD
Reebok/NNP
just/RB
two/CD
years/NNS
ago/IN
./.
Mr./NNP
LaBonte/NNP
's/POS
departure/NN
follows/VBZ
by/IN
two/CD
months/NNS
the/DT
resignation/NN
of/IN
Mark/NNP
Goldston/NNP
as/IN
senior/JJ
vice/NN
president/NN
and/CC
chief/NN
marketing/NN
officer/NN
after/IN
only/RB
11/CD
months/NNS
at/IN
Reebok/NNP
./.
The/DT
resignations/NNS
by/IN
the/DT
two/CD
executives/NNS
,/,
considered/VBN
hard-charging/NN
and/CC
abrasive/NN
by/IN
Reebok/NNP
insiders/NNS
,/,
reflect/VBP
a/DT
difference/NN
in/IN
style/NN
with/IN
Paul/NNP
Fireman/NNP
,/,
chairman/NN
and/CC
chief/NN
executive/NN
,/,
according/VBG
to/TO
several/JJ
former/JJ
executives/NNS
./.
The/DT
two/CD
executives/NNS
are/VBP
among/IN
a/DT
number/NN
of/IN
outsiders/NNS
recruited/VBN
by/IN
Reebok/NNP
in/IN
the/DT
past/JJ
few/JJ
years/NNS
to/TO
help/VB
it/PRP
make/VB
the/DT
transition/NN
from/IN
a/DT
small/JJ
start-up/JJ
company/NN
to/TO
a/DT
marketing/NN
giant/NN
with/IN
sales/NNS
last/JJ
year/NN
of/IN
$/$
1.79/CD
billion/CD
./.
The/DT
changes/NNS
come/VBP
as/IN
Reebok/NNP
,/,
which/WDT
grew/VBD
rapidly/RB
in/IN
the/DT
mid-1980s/CD
but/CC
has/VBZ
seen/VBN
its/PRP$
sales/NNS
flatten/VB
of/IN
late/RB
,/,
is/VBZ
seeking/VBG
to/TO
regain/VB
momentum/NN
in/IN
the/DT
athletic-shoe/NN
business/NN
against/IN
rivals/NNS
Nike/NNP
Inc./NNP
and/CC
L.A./NNP
Gear/NNP
Inc/NNP
./.
The/DT
departures/NNS
,/,
said/VBD
Alice/NNP
Ruth/NNP
,/,
an/DT
analyst/NN
at/IN
Montgomery/NNP
Securities/NNPS
in/IN
San/NNP
Francisco/NNP
,/,
should/MD
enable/VB
the/DT
company/NN
to/TO
focus/VB
on/IN
business/NN
issues/NNS
instead/RB
of/IN
management/NN
differences/NNS
./.
``/``
I/PRP
think/VBP
it/PRP
's/VBZ
more/RBR
an/DT
issue/NN
of/IN
style/NN
./.
I/PRP
would/MD
view/VB
it/PRP
as/IN
a/DT
net/JJ
positive/NN
./.
The/DT
company/NN
can/MD
go/VB
about/IN
its/PRP$
business/NN
./.
They/PRP
're/VBP
in/IN
the/DT
midst/NN
of/IN
a/DT
turnaround/NN
,/,
''/''
she/PRP
noted/VBD
./.
Earnings/NNS
have/VBP
rebounded/VBN
in/IN
1989/CD
after/IN
a/DT
20/CD
%/NN
decline/NN
last/JJ
year/NN
./.
A/DT
former/JJ
executive/NN
agreed/VBD
that/IN
the/DT
departures/NNS
do/VBP
n't/RB
reflect/VB
major/JJ
problems/NNS
,/,
adding/VBG
:/:
``/``
If/IN
you/PRP
see/VBP
any/DT
company/NN
that/WDT
grows/VBZ
as/RB
fast/RB
as/IN
Reebok/NNP
did/VBD
,/,
it/PRP
is/VBZ
going/VBG
to/TO
have/VB
people/NNS
coming/VBG
and/CC
going/VBG
./.
''/''
Reebok/NNP
said/VBD
Mr./NNP
LaBonte/NNP
will/MD
resume/VB
the/DT
presidency/NN
of/IN
Vantage/NNP
Group/NNP
Inc./NNP
,/,
a/DT
California-based/JJ
venture/NN
capital/NN
firm/NN
that/IN
he/PRP
founded/VBD
in/IN
1983/CD
./.
Before/IN
that/IN
he/PRP
was/VBD
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
of/IN
Twentieth/NNP
Century-Fox/NNP
Film/NNP
Corp/NNP
./.
Reebok/NNP
added/VBD
that/IN
Mr./NNP
Fireman/NNP
will/MD
assume/VB
the/DT
title/NN
of/IN
president/NN
./.
A/DT
spokesman/NN
said/VBD
that/IN
neither/DT
Mr./NNP
Fireman/NNP
nor/CC
Mr./NNP
LaBonte/NNP
would/MD
be/VB
available/JJ
for/IN
comment/NN
./.
``/``
We/PRP
will/MD
not/RB
be/VB
commenting/VBG
beyond/IN
the/DT
news/NN
release/NN
,/,
''/''
the/DT
spokesman/NN
said/VBD
./.
Mr./NNP
Goldston/NNP
,/,
who/WP
had/VBD
been/VBN
president/NN
of/IN
Faberge/NNP
Inc./NNP
's/POS
Faberge/NNP
U.S.A./NNP
division/NN
before/IN
joining/VBG
Reebok/NNP
in/IN
September/NNP
1988/CD
,/,
left/VBN
in/IN
August/NNP
to/TO
pursue/VB
other/JJ
interests/NNS
./.
Magazine/NN
publishers/NNS
are/VBP
facing/VBG
spiraling/VBG
costs/NNS
and/CC
a/DT
glut/NN
of/IN
new/JJ
titles/NNS
./.
But/CC
even/RB
a/DT
raft/NN
of/IN
recent/JJ
failures/NNS
is/VBZ
n't/RB
stopping/VBG
them/PRP
from/IN
launching/VBG
new/JJ
publications/NNS
./.
At/IN
the/DT
American/NNP
Magazine/NNP
Conference/NNP
here/RB
,/,
publishers/NNS
are/VBP
plenty/RB
worried/VBN
about/IN
the/DT
industry/NN
's/POS
woes/NNS
./.
But/CC
they/PRP
are/VBP
also/RB
talking/VBG
about/IN
new/JJ
magazines/NNS
./.
For/IN
example/NN
,/,
Toronto-based/JJ
Telemedia/NNP
Inc./NNP
will/MD
publish/VB
Eating/NNP
Well/NNP
,/,
a/DT
new/JJ
food/NN
and/CC
health/NN
magazine/NN
due/JJ
out/IN
next/JJ
summer/NN
./.
New/NNP
York-based/JJ
Hearst/NNP
Corp./NNP
this/DT
fall/NN
plans/VBZ
to/TO
publish/VB
its/PRP$
first/JJ
issue/NN
of/IN
9/CD
Months/NNS
,/,
a/DT
magazine/NN
for/IN
expectant/JJ
mothers/NNS
,/,
and/CC
has/VBZ
already/RB
launched/VBN
American/NNP
Home/NNP
./.
And/CC
Time/NNP
Warner/NNP
Inc./NNP
is/VBZ
developing/VBG
a/DT
spinoff/NN
of/IN
Time/NNP
magazine/NN
aimed/VBN
at/IN
kids/NNS
,/,
on/IN
the/DT
heels/NNS
of/IN
its/PRP$
successful/JJ
Sports/NNP
Illustrated/NNP
for/IN
Kids/NNPS
./.
Over/IN
the/DT
past/JJ
four/CD
years/NNS
,/,
the/DT
number/NN
of/IN
consumer/NN
magazines/NNS
has/VBZ
increased/VBN
by/IN
an/DT
average/NN
of/IN
80/CD
magazines/NNS
annually/RB
,/,
according/VBG
to/TO
Donald/NNP
Kummerfeld/NNP
,/,
president/NN
of/IN
the/DT
Magazine/NNP
Publishers/NNPS
of/IN
America/NNP
./.
``/``
This/DT
is/VBZ
an/DT
impressive/JJ
show/NN
of/IN
faith/NN
in/IN
the/DT
future/NN
of/IN
the/DT
magazine/NN
industry/NN
,/,
''/''
said/VBD
Mr./NNP
Kummerfeld/NNP
./.
``/``
Entrepreneurs/NNS
do/VBP
n't/RB
rush/VB
to/TO
get/VB
into/IN
a/DT
stagnant/JJ
or/CC
declining/VBG
industry/NN
./.
''/''
And/CC
despite/IN
the/DT
recent/JJ
tough/JJ
advertising/NN
climate/NN
,/,
industry/NN
figures/NNS
released/VBN
at/IN
the/DT
meeting/NN
here/RB
indicate/VBP
things/NNS
may/MD
be/VB
turning/VBG
around/IN
./.
For/IN
the/DT
first/JJ
nine/CD
months/NNS
,/,
advertising/VBG
pages/NNS
in/IN
consumer/NN
magazines/NNS
tracked/VBN
by/IN
the/DT
Publishers/NNPS
Information/NNP
Bureau/NNP
increased/VBD
4/CD
%/NN
from/IN
the/DT
same/JJ
period/NN
last/JJ
year/NN
,/,
to/TO
125,849/CD
pages/NNS
./.
Total/JJ
magazine/NN
ad/NN
revenue/NN
for/IN
the/DT
same/JJ
period/NN
increased/VBD
12/CD
%/NN
to/TO
$/$
4.6/CD
billion/CD
./.
Though/IN
for/IN
some/DT
magazines/NNS
categories/NNS
a/DT
tough/JJ
advertising/NN
climate/NN
persists/VBZ
,/,
the/DT
industry/NN
in/IN
general/JJ
is/VBZ
doing/VBG
well/RB
compared/VBN
with/IN
the/DT
newspaper/NN
industry/NN
./.
Though/IN
some/DT
magazines/NNS
are/VBP
thriving/VBG
,/,
the/DT
magazine/NN
publishing/VBG
industry/NN
remains/VBZ
a/DT
risky/JJ
business/NN
./.
Within/IN
the/DT
same/JJ
nine/CD
months/NNS
,/,
News/NNP
Corp./NNP
closed/VBD
down/IN
In/IN
Fashion/NNP
,/,
a/DT
once-promising/JJ
young/JJ
woman/NN
's/POS
fashion/NN
magazine/NN
,/,
Drake/NNP
Publications/NNPS
Inc./NNP
has/VBZ
folded/VBN
the/DT
long-troubled/JJ
Venture/NNP
magazine/NN
,/,
and/CC
Lang/NNP
Communications/NNPS
has/VBZ
announced/VBN
Ms./NNP
magazine/NN
,/,
after/IN
17/CD
years/NNS
,/,
will/MD
no/RB
longer/RB
carry/VB
advertising/NN
as/IN
of/IN
January/NNP
./.
Lang/NNP
is/VBZ
cutting/VBG
costs/NNS
and/CC
will/MD
attempt/VB
to/TO
operate/VB
the/DT
magazine/NN
with/IN
only/JJ
subscription/NN
revenue/NN
./.
Meanwhile/RB
,/,
American/NNP
Health/NNP
Partners/NNPS
,/,
publisher/NN
of/IN
American/NNP
Health/NNP
magazine/NN
,/,
is/VBZ
deep/JJ
in/IN
debt/NN
,/,
and/CC
Owen/NNP
Lipstein/NNP
,/,
founder/NN
and/CC
managing/VBG
partner/NN
,/,
is/VBZ
being/VBG
forced/VBN
to/TO
sell/VB
the/DT
magazine/NN
to/TO
Reader/NNP
's/POS
Digest/NNP
Association/NNP
Inc/NNP
./.
Mr./NNP
Lipstein/NNP
's/POS
absence/NN
from/IN
the/DT
meeting/NN
here/RB
raised/VBD
speculation/NN
that/IN
the/DT
sale/NN
is/VBZ
in/IN
trouble/NN
./.
Mr./NNP
Lipstein/NNP
said/VBD
in/IN
a/DT
telephone/NN
interview/NN
from/IN
New/NNP
York/NNP
that/IN
the/DT
sale/NN
was/VBD
proceeding/VBG
as/RB
planned/VBN
./.
``/``
The/DT
magazine/NN
is/VBZ
strong/JJ
./.
It/PRP
's/VBZ
simply/RB
the/DT
right/JJ
time/NN
to/TO
do/VB
what/WP
we/PRP
are/VBP
doing/VBG
,/,
''/''
Mr./NNP
Lipstein/NNP
said/VBD
./.
``/``
Magazines/NNS
can/MD
no/RB
longer/RB
be/VB
considered/VBN
institutions/NNS
,/,
''/''
said/VBD
James/NNP
Autry/NNP
,/,
president/NN
of/IN
Meredith/NNP
Corp./NNP
's/POS
magazine/NN
group/NN
./.
``/``
Publishers/NNS
will/MD
find/VB
that/IN
some/DT
magazines/NNS
have/VBP
served/VBN
their/PRP$
purpose/NN
and/CC
should/MD
die/VB
,/,
''/''
he/PRP
added/VBD
./.
``/``
Magazines/NNS
could/MD
,/,
like/IN
other/JJ
brands/NNS
,/,
find/VBP
that/IN
they/PRP
have/VBP
only/RB
a/DT
limited/VBN
life/NN
./.
''/''
There/EX
are/VBP
also/RB
indications/NNS
that/IN
the/DT
number/NN
of/IN
magazine/NN
entrepreneurs/NNS
,/,
traditionally/RB
depended/VBD
upon/IN
to/TO
break/VB
new/JJ
ground/NN
with/IN
potentially/RB
risky/JJ
start-ups/NNS
,/,
are/VBP
dwindling/VBG
./.
More/RBR
than/IN
ever/RB
,/,
independent/JJ
magazines/NNS
and/CC
small/JJ
publishing/NN
groups/NNS
are/VBP
being/VBG
gobbled/VBN
up/IN
by/IN
larger/JJR
publishing/NN
groups/NNS
,/,
such/JJ
as/IN
American/NNP
Express/NNP
Publishing/NNP
Corp./NNP
,/,
a/DT
unit/NN
of/IN
American/NNP
Express/NNP
Co./NNP
,/,
and/CC
Conde/NNP
Nast/NNP
Publications/NNPS
Inc./NNP
,/,
a/DT
unit/NN
of/IN
Advance/NNP
Publications/NNPS
Inc./NNP
,/,
which/WDT
are/VBP
consolidating/VBG
in/IN
order/NN
to/TO
gain/VB
leverage/NN
with/IN
advertisers/NNS
./.
Some/DT
entrepreneurs/NNS
are/VBP
still/RB
active/JJ
,/,
though/RB
./.
Gerry/NNP
Ritterman/NNP
,/,
president/NN
of/IN
New/NNP
York-based/JJ
Network/NNP
Publishing/NNP
Corp./NNP
,/,
earlier/RBR
this/DT
year/NN
sold/VBD
his/PRP$
Soap/NNP
Opera/NNP
Digest/NNP
magazine/NN
to/TO
Rupert/NNP
Murdoch/NNP
's/POS
News/NNP
Corp/NNP
./.
Mr./NNP
Ritterman/NNP
said/VBD
that/IN
in/IN
the/DT
next/JJ
six/CD
months/NNS
he/PRP
will/MD
take/VB
$/$
50/CD
million/CD
from/IN
the/DT
Soap/NNP
Opera/NNP
Digest/NNP
sale/NN
to/TO
acquire/VB
new/JJ
magazines/NNS
./.
He/PRP
would/MD
not/RB
reveal/VB
which/WDT
magazines/NNS
he/PRP
is/VBZ
considering/VBG
./.
``/``
The/DT
magazines/NNS
I/PRP
am/VBP
looking/VBG
for/IN
are/VBP
underdeveloped/JJ
,/,
''/''
said/VBD
Mr./NNP
Ritterman/NNP
./.
``/``
They/PRP
could/MD
be/VB
old/JJ
or/CC
new/JJ
,/,
but/CC
they/PRP
are/VBP
magazines/NNS
whose/WP$
editorial/JJ
quality/NN
needs/VBZ
to/TO
be/VB
improved/VBN
./.
They/PRP
will/MD
be/VB
the/DT
next/JJ
hot/JJ
magazines/NNS
./.
''/''
MCA/NNP
Inc./NNP
said/VBD
its/PRP$
toy-making/JJ
unit/NN
agreed/VBD
to/TO
buy/VB
Buddy/NNP
L/NNP
Corp./NNP
,/,
producer/NN
of/IN
a/DT
line/NN
of/IN
toy/NN
vehicles/NNS
and/CC
preschool/JJ
products/NNS
./.
The/DT
price/NN
was/VBD
n't/RB
disclosed/VBD
,/,
but/CC
an/DT
executive/NN
of/IN
LJN/NNP
Toys/NNPS
Ltd./NNP
,/,
the/DT
MCA/NNP
unit/NN
,/,
said/VBD
the/DT
closely/RB
held/VBN
Buddy/NNP
L/NNP
had/VBD
annual/JJ
sales/NNS
in/IN
excess/NN
of/IN
$/$
20/CD
million/CD
./.
The/DT
40-year-old/JJ
Buddy/NNP
L/NNP
concern/NN
,/,
based/VBN
in/IN
New/NNP
York/NNP
,/,
designs/VBZ
and/CC
develops/VBZ
toys/NNS
under/IN
the/DT
names/NNS
``/``
Buddy/NNP
L/NNP
''/''
and/CC
``/``
My/NNP
First/NNP
Buddy/NNP
,/,
''/''
he/PRP
said/VBD
./.
MCA/NNP
said/VBD
it/PRP
expects/VBZ
the/DT
proposed/VBN
transaction/NN
to/TO
be/VB
completed/VBN
``/``
no/RB
later/RB
than/IN
Nov./NNP
10/CD
./.
''/''
its/PRP$
centennial/NN
year/NN
,/,
The/DT
Wall/NNP
Street/NNP
Journal/NNP
will/MD
report/VB
events/NNS
of/IN
the/DT
past/JJ
century/NN
that/DT
stand/NN
as/IN
milestones/NNS
of/IN
American/JJ
business/NN
history/NN
./.
FRANKLIN/NNP
NATIONAL/NNP
BANK/NNP
DIED/VBD
at/IN
3/CD
p.m./NN
EDT/NNP
,/,
Oct./NNP
8/CD
,/,
1974/CD
,/,
and/CC
was/VBD
promptly/RB
resurrected/VBN
under/IN
new/JJ
owners/NNS
to/TO
shore/VB
up/IN
confidence/NN
in/IN
other/JJ
banks/NNS
during/IN
a/DT
recession/NN
./.
Arthur/NNP
Burns/NNP
,/,
Federal/NNP
Reserve/NNP
Board/NNP
chairman/NN
,/,
said/VBD
the/DT
government/NN
's/POS
``/``
luck/NN
''/''
in/IN
keeping/VBG
the/DT
bank/NN
open/JJ
--/:
despite/IN
being/VBG
the/DT
then-biggest/JJ
U.S./NNP
bank/NN
failure/NN
--/:
prevented/VBN
``/``
shock/NN
waves/NNS
around/IN
the/DT
country/NN
and/CC
around/IN
the/DT
world/NN
./.
''/''
Federal/NNP
officials/NNS
who/WP
had/VBD
been/VBN
probing/VBG
the/DT
bank/NN
for/IN
months/NNS
arranged/VBD
a/DT
merger/NN
with/IN
European-American/NNP
Bank/NNP
&/CC
Trust/NNP
,/,
owned/VBN
by/IN
six/CD
foreign/JJ
banks/NNS
,/,
to/TO
avert/VB
the/DT
closedown/NN
./.
And/CC
federal/JJ
insurance/NN
protected/VBD
the/DT
bank/NN
's/POS
631,163/CD
depositors/NNS
./.
The/DT
crisis/NN
had/VBD
peaked/JJ
on/IN
May/NNP
10/CD
,/,
1974/CD
,/,
when/WRB
the/DT
bank/NN
disclosed/VBN
``/``
severe/JJ
''/''
foreign-exchange/NN
losses/NNS
due/JJ
to/TO
``/``
unauthorized/JJ
''/''
trading/NN
./.
Massive/JJ
withdrawals/NNS
followed/VBD
and/CC
there/EX
was/VBD
a/DT
brief/JJ
rescue/NN
attempt/NN
,/,
with/IN
political/JJ
undertones/NNS
,/,
including/VBG
$/$
1.77/CD
billion/CD
in/IN
Federal/NNP
Reserve/NNP
loans/NNS
./.
Within/IN
six/CD
years/NNS
many/JJ
figures/NNS
were/VBD
convicted/VBN
for/IN
their/PRP$
illegal/JJ
abuse/NN
of/IN
Franklin/NNP
funds/NNS
./.
In/IN
June/NNP
1980/CD
,/,
Michele/NNP
Sindona/NNP
--/:
an/DT
Italian/JJ
financier/NN
who/WP
in/IN
July/NNP
1972/CD
had/VBD
bought/VBN
a/DT
22/CD
%/NN
block/NN
of/IN
Franklin/NNP
's/POS
stock/NN
from/IN
Loews/NNP
Corp./NNP
,/,
headed/VBN
by/IN
Laurence/NNP
A./NNP
Tisch/NNP
--/:
was/VBD
sentenced/VBN
to/TO
25/CD
years/NNS
in/IN
prison/NN
after/IN
being/VBG
convicted/VBN
of/IN
fraud/NN
and/CC
perjury/NN
./.
Included/VBN
was/VBD
the/DT
charge/NN
that/IN
Sindona/NNP
siphoned/VBD
$/$
45/CD
million/CD
of/IN
Franklin/NNP
funds/NNS
for/IN
his/PRP$
other/JJ
ventures/NNS
./.
Sindona/NNP
in/IN
1979/CD
faked/VBD
his/PRP$
``/``
kidnapping/NN
''/''
for/IN
2/CD
1\/2/CD
months/NNS
to/TO
delay/VB
his/PRP$
trial/NN
./.
During/IN
1976/CD
to/TO
1979/CD
,/,
other/JJ
former/JJ
Franklin/NNP
officials/NNS
either/CC
pleaded/VBD
guilty/JJ
to/TO
or/CC
were/VBD
found/VBN
guilty/JJ
of/IN
violations/NNS
including/VBG
phony/JJ
transactions/NNS
to/TO
hide/VB
the/DT
bank/NN
's/POS
losses/NNS
./.
Sindona/NNP
,/,
the/DT
onetime/JJ
Vatican/NNP
financial/JJ
adviser/NN
with/IN
reported/VBN
links/NNS
to/TO
the/DT
Mafia/NNP
,/,
died/VBD
on/IN
March/NNP
22/CD
,/,
1986/CD
,/,
at/IN
age/NN
65/CD
,/,
reportedly/RB
after/IN
drinking/VBG
cyanide-laced/JJ
coffee/NN
in/IN
an/DT
Italian/JJ
prison/NN
./.
It/PRP
happened/VBD
four/CD
days/NNS
after/IN
he/PRP
was/VBD
sentenced/VBN
to/TO
life/NN
in/IN
prison/NN
for/IN
ordering/VBG
a/DT
1979/CD
murder/NN
./.
Italian/JJ
magistrates/NNS
labeled/VBD
his/PRP$
death/NN
a/DT
suicide/NN
./.
In/IN
a/DT
nondescript/JJ
office/NN
building/NN
south/RB
of/IN
Los/NNP
Angeles/NNP
,/,
human/JJ
behavior/NN
is/VBZ
being/VBG
monitored/VBN
,/,
dissected/VBN
and/CC
,/,
ultimately/RB
,/,
manipulated/VBN
./.
A/DT
squiggly/RB
line/NN
snakes/VBZ
across/IN
a/DT
video/NN
screen/NN
,/,
gyrating/VBG
erratically/RB
as/IN
subjects/NNS
with/IN
hand-held/JJ
computers/NNS
register/VBP
their/PRP$
second-by-second/JJ
reactions/NNS
to/TO
a/DT
speaker/NN
's/POS
remarks/NNS
./.
Agreement/NN
,/,
disapproval/NN
,/,
boredom/NN
and/CC
distraction/NN
all/DT
can/MD
be/VB
inferred/VBN
from/IN
the/DT
subjects/NNS
'/POS
twist/NN
of/IN
a/DT
dial/NN
./.
In/IN
another/DT
experiment/NN
,/,
an/DT
elaborate/JJ
chart/NN
with/IN
color/NN
codes/NNS
reveals/VBZ
how/WRB
people/NNS
's/POS
opinions/NNS
were/VBD
shaped/VBN
--/:
and/CC
how/WRB
they/PRP
can/MD
be/VB
reshaped/VBN
./.
Donald/NNP
Vinson/NNP
,/,
who/WP
oversees/VBZ
the/DT
experiments/NNS
,/,
is/VBZ
n't/RB
some/DT
white-coated/JJ
researcher/NN
./.
He/PRP
heads/VBZ
Litigation/NNP
Sciences/NNPS
Inc./NNP
,/,
the/DT
nation/NN
's/POS
largest/JJS
legal/JJ
consulting/VBG
firm/NN
,/,
which/WDT
is/VBZ
helping/VBG
corporate/JJ
America/NNP
prepare/VB
for/IN
high-stakes/JJ
litigation/NN
by/IN
predicting/VBG
and/CC
shaping/VBG
jurors/NNS
'/POS
reactions/NNS
./.
In/IN
the/DT
process/NN
,/,
Litigation/NNP
Sciences/NNPS
is/VBZ
quietly/RB
but/CC
inexorably/RB
reshaping/VBG
the/DT
world/NN
of/IN
law/NN
./.
Little/RB
known/VBN
outside/IN
the/DT
legal/JJ
world/NN
but/CC
a/DT
powerhouse/NN
within/IN
,/,
Litigation/NNP
Sciences/NNPS
,/,
a/DT
unit/NN
of/IN
Saatchi/NNP
&/CC
Saatchi/NNP
PLC/NNP
,/,
employs/VBZ
more/RBR
than/IN
100/CD
psychologists/NNS
,/,
sociologists/NNS
,/,
marketers/NNS
,/,
graphic/JJ
artists/NNS
and/CC
technicians/NNS
./.
Twenty-one/CD
of/IN
its/PRP$
workers/NNS
are/VBP
Ph./NNP
D.s/NNP
./.
Among/IN
other/JJ
services/NNS
,/,
the/DT
firm/NN
provides/VBZ
pre-trial/JJ
opinion/NN
polls/NNS
,/,
creates/VBZ
profiles/NNS
of/IN
``/``
ideal/JJ
''/''
jurors/NNS
,/,
sets/NNS
up/IN
mock/JJ
trials/NNS
and/CC
``/``
shadow/NN
''/''
juries/NNS
,/,
coaches/NNS
lawyers/NNS
and/CC
witnesses/NNS
,/,
and/CC
designs/VBZ
courtroom/NN
graphics/NNS
./.
Much/RB
like/IN
their/PRP$
cohorts/NNS
in/IN
political/JJ
consulting/NN
and/CC
product/NN
marketing/NN
,/,
the/DT
litigation/NN
advisers/NNS
encourage/VBP
their/PRP$
clients/NNS
to/TO
play/VB
down/IN
complex/JJ
or/CC
ambiguous/JJ
matters/NNS
,/,
simplify/VB
their/PRP$
messages/NNS
and/CC
provide/VB
their/PRP$
target/NN
audiences/NNS
with/IN
a/DT
psychological/JJ
craving/NN
to/TO
make/VB
the/DT
desired/VBN
choice/NN
./.
With/IN
jury/NN
verdicts/NNS
getting/VBG
bigger/JJR
all/PDT
the/DT
time/NN
,/,
companies/NNS
are/VBP
increasingly/RB
willing/JJ
to/TO
pay/VB
huge/JJ
sums/NNS
for/IN
such/JJ
advice/NN
./.
Recently/RB
,/,
Litigation/NNP
Sciences/NNPS
helped/VBD
Pennzoil/NNP
Co./NNP
win/VB
a/DT
$/$
10.5/CD
billion/CD
jury/NN
verdict/NN
against/IN
Texaco/NNP
Inc/NNP
./.
It/PRP
advised/VBD
the/DT
National/NNP
Football/NNP
League/NNP
in/IN
its/PRP$
largely/RB
successful/JJ
defense/NN
of/IN
antitrust/JJ
charges/NNS
by/IN
the/DT
United/NNP
States/NNPS
Football/NNP
League/NNP
./.
And/CC
it/PRP
helped/VBD
win/VB
defense/NN
verdicts/NNS
in/IN
product-liability/NN
suits/NNS
involving/VBG
scores/NNS
of/IN
products/NNS
,/,
ranging/VBG
from/IN
Firestone/NNP
500/CD
tires/NNS
to/TO
the/DT
anti-nausea/JJ
drug/NN
Bendectin/NNP
./.
Largely/RB
as/IN
a/DT
result/NN
,/,
Litigation/NNP
Sciences/NNPS
has/VBZ
more/RBR
than/IN
doubled/VBN
in/IN
size/NN
in/IN
the/DT
past/JJ
two/CD
years/NNS
./.
Its/PRP$
1988/CD
revenue/NN
was/VBD
$/$
25/CD
million/CD
./.
Meanwhile/RB
,/,
competitors/NNS
are/VBP
being/VBG
spawned/VBN
almost/RB
daily/RB
;/:
some/DT
300/CD
new/JJ
businesses/NNS
--/:
many/JJ
just/JJ
one-person/NN
shops/NNS
--/:
have/VBP
sprung/VBN
up/IN
./.
Mr./NNP
Vinson/NNP
estimates/VBZ
the/DT
industry/NN
's/POS
total/JJ
revenues/NNS
approach/VBP
$/$
200/CD
million/CD
./.
In/IN
any/DT
high-stakes/JJ
case/NN
,/,
you/PRP
can/MD
be/VB
sure/JJ
that/IN
one/CD
side/NN
or/CC
the/DT
other/JJ
--/:
or/CC
even/RB
both/DT
--/:
is/VBZ
using/VBG
litigation/NN
consultants/NNS
./.
Despite/IN
their/PRP$
ubiquity/NN
,/,
the/DT
consultants/NNS
are/VBP
n't/RB
entirely/RB
welcome/JJ
./.
Some/DT
lawyers/NNS
and/CC
scholars/NNS
see/VBP
the/DT
social/JJ
scientists/NNS
'/POS
vision/NN
of/IN
the/DT
American/JJ
jury/NN
system/NN
as/IN
a/DT
far/JJ
cry/NN
from/IN
the/DT
ideal/NN
presented/VBN
in/IN
civics/NNS
texts/NNS
and/CC
memorialized/VBN
on/IN
the/DT
movie/NN
screen/NN
./.
In/IN
the/DT
film/NN
classic/NN
``/``
Twelve/NNP
Angry/NNP
Men/NNPS
,/,
''/''
the/DT
crucible/NN
of/IN
deliberations/NNS
unmasks/VBZ
each/DT
juror/NN
's/POS
bias/NN
and/CC
purges/VBZ
it/PRP
from/IN
playing/VBG
a/DT
role/NN
in/IN
the/DT
verdict/NN
./.
After/IN
hours/NNS
of/IN
conflict/NN
and/CC
debate/NN
,/,
that/IN
jury/NN
focuses/VBZ
on/IN
the/DT
facts/NNS
with/IN
near-perfect/JJ
objectivity/NN
./.
In/IN
real/JJ
life/NN
,/,
jurors/NNS
may/MD
not/RB
always/RB
work/VB
that/DT
way/NN
,/,
but/CC
some/DT
court/NN
observers/NNS
question/VBP
why/WRB
they/PRP
should/MD
n't/RB
be/VB
encouraged/VBN
to/TO
do/VB
so/RB
rather/RB
than/IN
be/VB
programmed/VBN
not/RB
to/TO
./.
Litigation/NN
consulting/NN
is/VBZ
,/,
as/IN
New/NNP
York/NNP
trial/NN
attorney/NN
Donald/NNP
Zoeller/NNP
puts/VBZ
it/PRP
,/,
``/``
highly/RB
manipulative/JJ
./.
''/''
He/PRP
adds/VBZ
,/,
``/``
The/DT
notion/NN
they/PRP
try/VBP
to/TO
sell/VB
is/VBZ
that/IN
juries/NNS
do/VBP
n't/RB
make/VB
decisions/NNS
rationally/RB
./.
But/CC
the/DT
effort/NN
is/VBZ
also/RB
being/VBG
made/VBN
to/TO
try/VB
and/CC
cause/VB
jurors/NNS
not/RB
to/TO
decide/VB
things/NNS
rationally/RB
./.
I/PRP
find/VBP
it/PRP
troubling/JJ
./.
''/''
But/CC
Mr./NNP
Zoeller/NNP
also/RB
acknowledges/VBZ
that/IN
consultants/NNS
can/MD
be/VB
very/RB
effective/JJ
./.
``/``
It/PRP
's/VBZ
gotten/VBN
to/TO
the/DT
point/NN
where/WRB
if/IN
the/DT
case/NN
is/VBZ
large/JJ
enough/RB
,/,
it/PRP
's/VBZ
almost/RB
malpractice/NN
not/RB
to/TO
use/VB
them/PRP
,/,
''/''
he/PRP
says/VBZ
./.
Others/NNS
complain/VBP
that/IN
the/DT
consultants/NNS
'/POS
growing/VBG
influence/NN
exacerbates/VBZ
the/DT
advantage/NN
of/IN
litigants/NNS
wealthy/JJ
enough/RB
to/TO
afford/VB
such/JJ
pricey/JJ
services/NNS
./.
``/``
The/DT
affluent/JJ
people/NNS
and/CC
the/DT
corporations/NNS
can/MD
buy/VB
it/PRP
,/,
the/DT
poor/JJ
radicals/NNS
political/JJ
cases/NNS
it/PRP
free/JJ
,/,
and/CC
everybody/NN
in/IN
between/IN
is/VBZ
at/IN
a/DT
disadvantage/NN
,/,
and/CC
that/DT
's/VBZ
not/RB
the/DT
kind/NN
of/IN
system/NN
we/PRP
want/VBP
,/,
''/''
says/VBZ
Amitai/NNP
Etzioni/NNP
,/,
a/DT
prominent/JJ
sociologist/NN
who/WP
teaches/VBZ
at/IN
George/NNP
Washington/NNP
University/NNP
./.
Sophisticated/JJ
trial/NN
consulting/NN
grew/VBD
,/,
ironically/RB
,/,
from/IN
the/DT
radical/JJ
political/JJ
movements/NNS
of/IN
the/DT
1960s/CD
and/CC
1970s/CD
before/IN
finding/VBG
its/PRP$
more/JJR
lucrative/JJ
calling/NN
in/IN
big/JJ
commercial/JJ
cases/NNS
./.
The/DT
Harrisburg/NNP
7/CD
trial/NN
in/IN
1972/CD
,/,
in/IN
which/WDT
Daniel/NNP
Berrigan/NNP
and/CC
others/NNS
were/VBD
charged/VBN
with/IN
plotting/VBG
anti-war-related/JJ
violence/NN
,/,
was/VBD
a/DT
landmark/NN
./.
In/IN
that/DT
case/NN
,/,
a/DT
group/NN
of/IN
left-leaning/JJ
sociologists/NNS
interviewed/VBD
252/CD
registered/VBN
voters/NNS
around/IN
Harrisburg/NNP
./.
The/DT
researchers/NNS
discovered/VBD
that/IN
Episcopalians/NNPS
,/,
Presbyterians/NNPS
,/,
Methodists/NNPS
and/CC
fundamantalist/NN
Protestants/NNPS
were/VBD
nearly/RB
always/RB
against/IN
the/DT
defendants/NNS
;/:
the/DT
lawyers/NNS
resolved/VBN
to/TO
try/VB
to/TO
keep/VB
them/PRP
off/IN
the/DT
jury/NN
./.
The/DT
defense/NN
also/RB
learned/VBD
that/IN
college-educated/JJ
people/NNS
were/VBD
uncharacteristically/RB
conservative/JJ
about/IN
the/DT
Vietnam/NNP
War/NNP
./.
A/DT
more/RBR
blue-collar/JJ
panel/NN
became/VBD
a/DT
second/JJ
aim/NN
./.
Ultimately/RB
,/,
that/DT
carefully/RB
picked/VBN
jury/NN
deadlocked/VBN
with/IN
a/DT
10-2/CD
vote/NN
to/TO
acquit/VB
,/,
and/CC
the/DT
prosecution/NN
decided/VBD
not/RB
to/TO
retry/VB
the/DT
case/NN
./.
Litigation/NN
consulting/NN
had/VBD
arrived/VBN
./.
The/DT
fledgling/NN
science/NN
went/VBD
corporate/JJ
in/IN
1977/CD
when/WRB
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
hired/VBD
a/DT
marketing/NN
professor/NN
to/TO
help/VB
defend/VB
a/DT
complex/JJ
antitrust/JJ
case/NN
./.
The/DT
problem/NN
for/IN
IBM/NNP
trial/NN
lawyers/NNS
Thomas/NNP
Barr/NNP
and/CC
David/NNP
Boies/NNP
was/VBD
how/WRB
to/TO
make/VB
such/PDT
a/DT
highly/RB
technical/JJ
case/NN
understandable/JJ
./.
As/IN
the/DT
trial/NN
progressed/VBD
,/,
they/PRP
were/VBD
eager/JJ
to/TO
know/VB
if/IN
the/DT
jury/NN
was/VBD
keeping/VBG
up/IN
with/IN
them/PRP
./.
The/DT
solution/NN
devised/VBN
by/IN
the/DT
professor/NN
was/VBD
to/TO
hire/VB
six/CD
people/NNS
who/WP
would/MD
mirror/VB
the/DT
actual/JJ
jury/NN
demographically/RB
,/,
sit/VB
in/IN
on/IN
the/DT
trial/NN
and/CC
report/VB
their/PRP$
reactions/NNS
to/TO
him/PRP
./.
He/PRP
then/RB
briefed/VBD
Messrs./NNP
Boies/NNP
and/CC
Barr/NNP
,/,
who/WP
had/VBD
the/DT
chance/NN
to/TO
tilt/VB
their/PRP$
next/JJ
day/NN
's/POS
presentation/NN
accordingly/RB
./.
Thus/RB
,/,
the/DT
``/``
shadow/NN
''/''
jury/NN
was/VBD
born/VBN
./.
Mr./NNP
Vinson/NNP
,/,
the/DT
professor/NN
,/,
got/VBD
the/DT
law/NN
bug/NN
and/CC
formed/VBD
Litigation/NNP
Sciences/NNPS
./.
IBM/NNP
won/VBD
the/DT
case/NN
./.
``/``
The/DT
hardest/JJS
thing/NN
in/IN
any/DT
complex/JJ
case/NN
is/VBZ
to/TO
retain/VB
objectivity/NN
and/CC
,/,
in/IN
some/DT
sense/NN
,/,
your/PRP$
ignorance/NN
,/,
''/''
says/VBZ
Mr./NNP
Boies/NNP
of/IN
Cravath/NNP
,/,
Swaine/NNP
&/CC
Moore/NNP
./.
``/``
What/WP
you/PRP
look/VBP
for/IN
in/IN
a/DT
shadow/NN
jury/NN
is/VBZ
very/RB
much/RB
what/WP
you/PRP
do/VBP
when/WRB
you/PRP
give/VBP
an/DT
opening/VBG
argument/NN
to/TO
your/PRP$
wife/NN
or/CC
a/DT
friend/NN
and/CC
get/VBP
some/DT
response/NN
to/TO
it/PRP
./.
A/DT
shadow/NN
jury/NN
is/VBZ
a/DT
way/NN
to/TO
do/VB
that/DT
in/IN
a/DT
more/RBR
systematic/JJ
and/CC
organized/VBN
way/NN
./.
''/''
The/DT
approach/NN
worked/VBD
well/RB
in/IN
the/DT
recent/JJ
antitrust/JJ
case/NN
in/IN
which/WDT
Energy/NNP
Transportation/NNP
Systems/NNPS
Inc./NNP
sued/VBD
Santa/NNP
Fe/NNP
Pacific/NNP
Corp./NNP
over/IN
the/DT
transport/NN
of/IN
semi-liquefied/JJ
coal/NN
--/:
the/DT
kind/NN
of/IN
case/NN
likely/JJ
to/TO
make/VB
almost/RB
anyone/NN
's/POS
eyes/NNS
glaze/VB
over/IN
./.
Energy/NNP
Transportation/NNP
retained/VBD
Litigation/NNP
Sciences/NNPS
,/,
at/IN
a/DT
cost/NN
of/IN
several/JJ
hundred/CD
thousand/CD
dollars/NNS
,/,
to/TO
poll/VB
,/,
pre-try/VB
,/,
profile/VB
and/CC
shadow/VB
./.
Just/RB
before/IN
the/DT
actual/JJ
closing/VBG
arguments/NNS
,/,
the/DT
firm/NN
put/VBD
the/DT
case/NN
to/TO
a/DT
vote/NN
of/IN
the/DT
five/CD
shadow/NN
jurors/NNS
,/,
each/DT
of/IN
whom/WP
was/VBD
being/VBG
paid/VBN
$/$
150/CD
a/DT
day/NN
./.
The/DT
jurors/NNS
,/,
who/WP
did/VBD
n't/RB
know/VB
which/WDT
side/NN
had/VBD
retained/VBN
them/PRP
,/,
decided/VBD
for/IN
Energy/NNP
Transportation/NNP
,/,
and/CC
awarded/VBN
$/$
500/CD
million/CD
in/IN
damages/NNS
./.
The/DT
real/JJ
jury/NN
returned/VBD
days/NNS
later/RB
with/IN
a/DT
$/$
345/CD
million/CD
victory/NN
for/IN
Energy/NNP
Transportation/NNP
./.
``/``
It/PRP
's/VBZ
just/RB
like/IN
weather/NN
forecasting/NN
,/,
''/''
says/VBZ
Energy/NNP
Transportation/NNP
trial/NN
attorney/NN
Harry/NNP
Reasoner/NNP
of/IN
Vinson/NNP
&/CC
Elkins/NNP
./.
``/``
It/PRP
's/VBZ
often/RB
wrong/JJ
,/,
but/CC
it/PRP
's/VBZ
better/JJR
than/IN
consulting/VBG
an/DT
Indian/JJ
rain/NN
dancer/NN
./.
''/''
Forecasting/NN
is/VBZ
only/RB
one/CD
part/NN
of/IN
Litigation/NNP
Sciences/NNPS
'/POS
work/NN
./.
Changing/VBG
the/DT
outcome/NN
of/IN
the/DT
trial/NN
is/VBZ
what/WP
really/RB
matters/VBZ
./.
And/CC
to/TO
the/DT
uninitiated/JJ
,/,
some/DT
of/IN
the/DT
firm/NN
's/POS
approaches/NNS
may/MD
seem/VB
chillingly/RB
manipulative/JJ
./.
Theoretically/RB
,/,
jurors/NNS
are/VBP
supposed/VBN
to/TO
weigh/VB
the/DT
evidence/NN
in/IN
a/DT
case/NN
logically/RB
and/CC
objectively/RB
./.
Instead/RB
,/,
Mr./NNP
Vinson/NNP
says/VBZ
,/,
interviews/NNS
with/IN
thousands/NNS
of/IN
jurors/NNS
reveal/VBP
that/IN
they/PRP
start/VBP
with/IN
firmly/RB
entrenched/VBN
attitudes/NNS
and/CC
try/VBP
to/TO
shoe-horn/VB
the/DT
facts/NNS
of/IN
the/DT
case/NN
to/TO
fit/VB
their/PRP$
views/NNS
./.
Pre-trial/JJ
polling/NN
helps/VBZ
the/DT
consultants/NNS
develop/VB
a/DT
profile/NN
of/IN
the/DT
right/JJ
type/NN
of/IN
juror/NN
./.
If/IN
it/PRP
is/VBZ
a/DT
case/NN
in/IN
which/WDT
the/DT
client/NN
seeks/VBZ
punitive/JJ
damages/NNS
,/,
for/IN
example/NN
,/,
depressed/VBN
,/,
underemployed/JJ
people/NNS
are/VBP
far/RB
more/RBR
likely/JJ
to/TO
grant/VB
them/PRP
./.
Someone/NN
with/IN
a/DT
master/NN
's/POS
degree/NN
in/IN
classical/JJ
arts/NNS
who/WP
works/VBZ
in/IN
a/DT
deli/NNS
would/MD
be/VB
ideal/JJ
,/,
Litigation/NNP
Sciences/NNPS
advises/VBZ
./.
So/RB
would/MD
someone/NN
recently/RB
divorced/VBN
or/CC
widowed/VBN
./.
Litigation/NNP
Sciences/NNPS
generally/RB
represents/VBZ
the/DT
defense/NN
,/,
its/PRP$
job/NN
is/VBZ
usually/RB
to/TO
help/VB
the/DT
lawyers/NNS
identify/VB
and/CC
remove/VB
such/JJ
people/NNS
from/IN
the/DT
jury/NN
./.
For/IN
personal-injury/NN
cases/NNS
,/,
Litigation/NNP
Sciences/NNPS
seeks/VBZ
defense/NN
jurors/NNS
who/WP
believe/VBP
that/IN
most/JJS
people/NNS
,/,
including/VBG
victims/NNS
,/,
get/VB
what/WP
they/PRP
deserve/VBP
./.
Such/JJ
people/NNS
also/RB
typically/RB
hold/VBP
negative/JJ
attitudes/NNS
toward/IN
the/DT
physically/RB
handicapped/VBN
,/,
the/DT
poor/JJ
,/,
blacks/NNS
and/CC
women/NNS
./.
The/DT
consultants/NNS
help/VBP
the/DT
defense/NN
lawyers/NNS
find/VB
such/JJ
jurors/NNS
by/IN
asking/VBG
questions/NNS
about/IN
potential/JJ
jurors/NNS
'/POS
attitudes/NNS
toward/IN
volunteer/NN
work/NN
,/,
or/CC
toward/IN
particular/JJ
movies/NNS
or/CC
books/NNS
./.
Litigation/NNP
Sciences/NNPS
does/VBZ
n't/RB
make/VB
moral/JJ
distinctions/NNS
./.
If/IN
a/DT
client/NN
needs/VBZ
prejudiced/JJ
jurors/NNS
,/,
the/DT
firm/NN
will/MD
help/VB
find/VB
them/PRP
./.
As/IN
Mr./NNP
Vinson/NNP
explains/VBZ
it/PRP
,/,
``/``
We/PRP
do/VBP
n't/RB
control/VB
the/DT
facts/NNS
./.
They/PRP
are/VBP
what/WP
they/PRP
are/VBP
./.
But/CC
any/DT
lawyer/NN
will/MD
select/VB
the/DT
facts/NNS
and/CC
the/DT
strategy/NN
to/TO
employ/VB
./.
In/IN
our/PRP$
system/NN
of/IN
advocacy/NN
,/,
the/DT
trial/NN
lawyer/NN
is/VBZ
duty/NN
bound/VBN
to/TO
present/VB
the/DT
best/JJS
case/NN
he/PRP
possibly/RB
can/MD
./.
''/''
Once/RB
a/DT
jury/NN
is/VBZ
selected/VBN
,/,
the/DT
consultants/NNS
often/RB
continue/VBP
to/TO
determine/VB
what/WP
the/DT
jurors/NNS
'/POS
attitudes/NNS
are/VBP
likely/JJ
to/TO
be/VB
and/CC
help/VB
shape/VB
the/DT
lawyers/NNS
'/POS
presentation/NN
accordingly/RB
./.
Logic/NN
plays/VBZ
a/DT
minimal/JJ
role/NN
here/RB
./.
More/RBR
important/JJ
are/VBP
what/WP
LSI/NNP
calls/VBZ
``/``
psychological/JJ
anchors/NNS
''/''
--/:
a/DT
few/JJ
focal/JJ
points/NNS
calculated/VBN
to/TO
appeal/VB
to/TO
the/DT
jury/NN
on/IN
a/DT
gut/NN
level/NN
./.
In/IN
one/CD
personal-injury/NN
case/NN
,/,
a/DT
woman/NN
claimed/VBD
she/PRP
had/VBD
been/VBN
injured/VBN
when/WRB
she/PRP
slipped/VBD
in/IN
a/DT
pool/NN
,/,
but/CC
the/DT
fall/NN
did/VBD
n't/RB
explain/VB
why/WRB
one/CD
of/IN
her/PRP$
arms/NNS
was/VBD
discolored/VBN
bluish/JJ
./.
By/IN
repeatedly/RB
drawing/VBG
the/DT
jury/NN
's/POS
attention/NN
to/TO
the/DT
arm/NN
,/,
the/DT
defense/NN
lawyers/NNS
planted/VBD
doubt/NN
about/IN
the/DT
origin/NN
of/IN
the/DT
woman/NN
's/POS
injuries/NNS
./.
The/DT
ploy/NN
worked/VBD
./.
The/DT
defense/NN
won/VBD
./.
In/IN
a/DT
classic/JJ
defense/NN
of/IN
a/DT
personal-injury/NN
case/NN
,/,
the/DT
consultants/NNS
concentrate/VBP
on/IN
encouraging/VBG
the/DT
jury/NN
to/TO
shift/VB
the/DT
blame/NN
./.
``/``
The/DT
ideal/JJ
defense/NN
in/IN
a/DT
case/NN
involving/VBG
an/DT
accident/NN
is/VBZ
to/TO
persuade/VB
the/DT
jurors/NNS
to/TO
hold/VB
the/DT
accident/NN
victim/NN
responsible/JJ
for/IN
his/PRP$
or/CC
her/PRP$
plight/NN
,/,
''/''
Mr./NNP
Vinson/NNP
has/VBZ
written/VBN
./.
Slick/JJ
graphics/NNS
,/,
pre-tested/VBN
for/IN
effectiveness/NN
,/,
also/RB
play/VBP
a/DT

major/JJ
role/NN
in/IN
Litigation/NNP
Sciences/NNPS
'/POS
operation/NN
./.
Studies/NNS
show/VBP
,/,
the/DT
consultants/NNS
say/VBP
,/,
that/IN
people/NNS
absorb/VBP
information/NN
better/RB
and/CC
remember/VBP
it/PRP
longer/RBR
if/IN
they/PRP
receive/VBP
it/PRP
visually/RB
./.
Computer-generated/JJ
videos/NNS
help/VBP
./.
``/``
The/DT
average/JJ
American/NNP
watches/VBZ
seven/CD
hours/NNS
of/IN
TV/NN
a/DT
day/NN
./.
They/PRP
are/VBP
very/RB
visually/RB
sophisticated/JJ
,/,
''/''
explains/VBZ
LSI/NNP
graphics/NNS
specialist/NN
Robert/NNP
Seltzer/NNP
./.
Lawyers/NNS
remain/VBP
divided/VBN
about/IN
whether/IN
anything/NN
is/VBZ
wrong/JJ
with/IN
all/PDT
this/DT
./.
Supporters/NNS
acknowledge/VBP
that/IN
the/DT
process/NN
aims/VBZ
to/TO
manipulate/VB
,/,
but/CC
they/PRP
insist/VBP
that/IN
the/DT
best/JJS
trial/NN
lawyers/NNS
have/VBP
always/RB
employed/VBN
similar/JJ
tactics/NNS
./.
``/``
They/PRP
may/MD
not/RB
have/VB
been/VBN
able/JJ
to/TO
articulate/VB
it/PRP
all/DT
,/,
but/CC
they/PRP
did/VBD
it/PRP
,/,
''/''
says/VBZ
Stephen/NNP
Gillers/NNP
,/,
a/DT
legal/JJ
ethics/NNS
expert/JJ
at/IN
New/NNP
York/NNP
University/NNP
law/NN
school/NN
./.
``/``
What/WP
you/PRP
have/VBP
here/RB
is/VBZ
intuition/NN
made/VBD
manifest/JJ
./.
''/''
Many/JJ
lawyers/NNS
maintain/VBP
that/IN
all/DT
's/VBZ
fair/JJ
in/IN
the/DT
adversary/NN
system/NN
as/RB
long/RB
as/IN
no/DT
one/CD
tampers/NNS
with/IN
the/DT
evidence/NN
./.
Others/NNS
point/VBP
out/IN
that/IN
lawyers/NNS
in/IN
small/JJ
communities/NNS
have/VBP
always/RB
had/VBN
a/DT
feel/NN
for/IN
public/JJ
sentiment/NN
--/:
and/CC
used/VBD
that/DT
to/TO
advantage/VB
./.
Litigation/NN
consulting/NN
is/VBZ
n't/RB
a/DT
guarantee/NN
of/IN
a/DT
favorable/JJ
outcome/NN
./.
Litigation/NNP
Sciences/NNPS
concedes/VBZ
that/IN
in/IN
one/CD
in/IN
20/CD
cases/NNS
it/PRP
was/VBD
flatout/NN
wrong/JJ
in/IN
its/PRP$
predictions/NNS
./.
A/DT
few/JJ
attorneys/NNS
offer/VBP
horror/NN
stories/NNS
of/IN
jobs/NNS
botched/VBN
by/IN
consultants/NNS
or/CC
of/IN
overpriced/VBN
services/NNS
--/:
as/IN
when/WRB
one/CD
lawyer/NN
paid/VBD
a/DT
consultant/NN
Litigation/NNP
Sciences/NNPS
$/$
70,000/CD
to/TO
interview/VB
a/DT
jury/NN
after/IN
a/DT
big/JJ
trial/NN
and/CC
later/RB
read/VBD
more/RBR
informative/JJ
interviews/NNS
with/IN
the/DT
same/JJ
jurors/NNS
in/IN
The/NNP
American/NNP
Lawyer/NNP
magazine/NN
./.
Some/DT
litigators/NNS
scoff/VBP
at/IN
the/DT
notion/NN
that/IN
a/DT
sociologist/NN
knows/VBZ
more/RBR
than/IN
they/PRP
do/VBP
about/IN
what/WP
makes/VBZ
a/DT
jury/NN
tick/VB
./.
``/``
The/DT
essence/NN
of/IN
being/VBG
a/DT
trial/NN
lawyer/NN
is/VBZ
understanding/VBG
how/WRB
people/NNS
of/IN
diverse/JJ
backgrounds/NNS
react/VBP
to/TO
you/PRP
and/CC
your/PRP$
presentation/NN
,/,
''/''
says/VBZ
Barry/NNP
Ostrager/NNP
of/IN
Simpson/NNP
Thacher/NNP
&/CC
Bartlett/NNP
,/,
who/WP
recently/RB
won/VBD
a/DT
huge/JJ
case/NN
on/IN
behalf/NN
of/IN
insurers/NNS
against/IN
Shell/NNP
Oil/NNP
Co/NNP
./.
He/PRP
says/VBZ
he/PRP
used/VBD
consultants/NNS
in/IN
the/DT
case/NN
but/CC
``/``
found/VBD
them/PRP
to/TO
be/VB
virtually/RB
useless/JJ
./.
''/''
But/CC
most/JJS
lawyers/NNS
accept/VBP
that/IN
the/DT
marketplace/NN
has/VBZ
spoken/VBN
./.
And/CC
the/DT
question/NN
remains/VBZ
whether/IN
the/DT
jury/NN
system/NN
can/MD
maintain/VB
its/PRP$
integrity/NN
while/IN
undergoing/VBG
such/PDT
a/DT
skillful/JJ
massage/NN
./.
For/IN
more/RBR
than/IN
a/DT
decade/NN
,/,
Mr./NNP
Etzioni/NNP
,/,
the/DT
sociologist/NN
,/,
has/VBZ
been/VBN
a/DT
leading/VBG
critic/NN
of/IN
the/DT
masseurs/NNS
./.
``/``
There/EX
's/VBZ
no/DT
reason/NN
to/TO
believe/VB
that/IN
juries/NNS
rule/VBP
inappropriately/RB
,/,
''/''
he/PRP
says/VBZ
./.
``/``
But/CC
the/DT
last/JJ
thing/NN
you/PRP
want/VBP
to/TO
do/VB
is/VBZ
manipulate/VB
the/DT
subconscious/NN
to/TO
make/VB
them/PRP
think/VB
better/RB
./.
What/WP
you/PRP
then/RB
do/VBP
is/VBZ
you/PRP
make/VBP
them/PRP
think/VB
inappropriately/RB
./.
''/''
To/TO
hamper/VB
the/DT
work/NN
of/IN
litigation/NN
scientists/NNS
,/,
he/PRP
suggests/VBZ
that/IN
courts/NNS
sharply/RB
limit/VB
the/DT
number/NN
of/IN
jurors/NNS
that/IN
lawyers/NNS
can/MD
remove/VB
from/IN
the/DT
jury/NN
panel/NN
through/IN
so-called/JJ
peremptory/JJ
challenges/NNS
--/:
exclusions/NNS
that/WDT
do/VBP
n't/RB
require/VB
explanations/NNS
./.
In/IN
most/RBS
civil/JJ
cases/NNS
,/,
judges/NNS
allow/VBP
each/DT
side/NN
three/CD
such/JJ
challenges/NNS
./.
For/IN
complex/JJ
cases/NNS
,/,
judges/NNS
sometimes/RB
allow/VBP
many/JJ
more/JJR
./.
Mr./NNP
Etzioni/NNP
also/RB
suggests/VBZ
forbidding/VBG
anyone/NN
from/IN
gathering/VBG
background/NN
information/NN
about/IN
the/DT
jurors/NNS
./.
Some/DT
courts/NNS
release/VBP
names/NNS
and/CC
addresses/NNS
,/,
and/CC
researchers/NNS
can/MD
drive/VB
by/IN
houses/NNS
,/,
look/VB
up/IN
credit/NN
ratings/NNS
,/,
and/CC
even/RB
question/VB
neighbors/NNS
./.
he/PRP
says/VBZ
,/,
psychologists/NNS
should/MD
not/RB
be/VB
allowed/VBN
to/TO
analyze/VB
jurors/NNS
'/POS
personalities/NNS
./.
Even/RB
some/DT
lawyers/NNS
who/WP
have/VBP
used/VBN
consultants/NNS
to/TO
their/PRP$
advantage/NN
see/VB
a/DT
need/NN
to/TO
limit/VB
their/PRP$
impact/NN
./.
Mr./NNP
Boies/NNP
,/,
the/DT
first/JJ
lawyer/NN
to/TO
use/VB
Mr./NNP
Vinson/NNP
's/POS
services/NNS
,/,
cautions/VBZ
against/IN
courts/NNS
'/POS
allowing/VBG
extensive/JJ
jury/NN
questioning/VBG
(/(
known/VBN
as/IN
voir/FW
dire/FW
personal/JJ
information/NN
about/IN
the/DT
jurors/NNS
./.
``/``
The/DT
more/RBR
extensive/JJ
the/DT
voir/FW
dire/FW
,/,
the/DT
easier/JJR
you/PRP
make/VBP
it/PRP
for/IN
that/DT
kind/NN
of/IN
research/NN
to/TO
be/VB
effective/JJ
,/,
and/CC
I/PRP
do/VBP
n't/RB
think/VB
courts/NNS
should/MD
lend/VB
themselves/PRP
to/TO
that/DT
,/,
''/''
Mr./NNP
Boies/NNP
says/VBZ
./.
Silicon/NNP
Graphics/NNP
Inc./NNP
,/,
a/DT
fast-growing/JJ
maker/NN
of/IN
computer/NN
workstations/NNS
,/,
said/VBD
it/PRP
landed/VBD
two/CD
federal/JJ
government/NN
contracts/NNS
worth/JJ
more/RBR
than/IN
$/$
100/CD
million/CD
over/IN
the/DT
next/JJ
five/CD
years/NNS
./.
One/CD
award/NN
is/VBZ
part/NN
of/IN
a/DT
Department/NNP
of/IN
Defense/NNP
contract/NN
to/TO
Loral/NNP
Rolm/NNP
Mil-Spec/NNP
Computers/NNPS
and/CC
could/MD
be/VB
valued/VBN
at/IN
more/RBR
than/IN
$/$
100/CD
million/CD
over/IN
five/CD
years/NNS
./.
The/DT
other/JJ
involves/VBZ
the/DT
sale/NN
of/IN
about/IN
35/CD
of/IN
the/DT
company/NN
's/POS
high-end/JJ
workstations/NNS
to/TO
the/DT
National/NNP
Institutes/NNPS
of/IN
Health/NNP
./.
The/DT
models/NNS
,/,
which/WDT
cost/VBD
about/IN
$/$
75,000/CD
each/DT
,/,
will/MD
be/VB
used/VBN
in/IN
research/NN
./.
The/DT
awards/NNS
are/VBP
evidence/NN
that/IN
Silicon/NNP
Graphics/NNP
'/POS
approach/NN
to/TO
computer/NN
graphics/NNS
is/VBZ
catching/VBG
on/IN
with/IN
users/NNS
of/IN
powerful/JJ
desktop/NN
computers/NNS
,/,
analysts/NNS
said/VBD
./.
``/``
The/DT
company/NN
's/VBZ
on/IN
a/DT
roll/NN
,/,
''/''
said/VBD
Robert/NNP
Herwick/NNP
,/,
an/DT
analyst/NN
at/IN
Hambrecht/NNP
&/CC
Quist/NNP
./.
``/``
No/RB
other/JJ
{/(
computer/NN
vendor/NN
offers/VBZ
graphics/NNS
performance/NN
that/DT
good/JJ
for/IN
their/PRP$
price/NN
./.
''/''
In/IN
the/DT
battle/NN
to/TO
supply/VB
desktop/NN
computers/NNS
for/IN
researchers/NNS
and/CC
design/NN
engineers/NNS
,/,
most/JJS
of/IN
the/DT
attention/NN
is/VBZ
given/VBN
to/TO
the/DT
biggest/JJS
competitors/NNS
:/:
Sun/NNP
Microsystems/NNPS
Inc./NNP
,/,
Hewlett-Packard/NNP
Co./NNP
and/CC
Digital/NNP
Equipment/NNP
Corp./NNP
,/,
which/WDT
make/VBP
computers/NNS
mainly/RB
aimed/VBN
at/IN
a/DT
wide/JJ
range/NN
of/IN
engineering/NN
and/CC
scientific/JJ
needs/NNS
./.
Silicon/NNP
Graphics/NNP
,/,
on/IN
the/DT
other/JJ
hand/NN
,/,
has/VBZ
targeted/VBN
a/DT
specific/JJ
niche/NN
since/IN
its/PRP$
inception/NN
in/IN
1982/CD
,/,
which/WDT
has/VBZ
been/VBN
dubbed/VBN
by/IN
some/DT
as/IN
``/``
motion-picture/JJ
computing/NN
./.
''/''
This/DT
is/VBZ
a/DT
style/NN
of/IN
``/``
visual/JJ
''/''
computing/NN
that/WDT
provides/VBZ
three-dimensional/JJ
,/,
color/NN
models/NNS
of/IN
everything/NN
from/IN
the/DT
inside/NN
of/IN
a/DT
house/NN
to/TO
the/DT
latest/JJS
in/IN
women/NNS
's/POS
fashion/NN
./.
Though/NNP
Silicon/NNP
Graphics/NNP
is/VBZ
much/RB
smaller/JJR
than/IN
Digital/NNP
,/,
Hewlett/NNP
and/CC
Sun/NNP
,/,
it/PRP
has/VBZ
emerged/VBN
in/IN
recent/JJ
years/NNS
as/IN
a/DT
feared/VBN
adversary/NN
in/IN
this/DT
graphics/NNS
portion/NN
of/IN
the/DT
workstation/NN
market/NN
./.
In/IN
addition/NN
,/,
the/DT
company/NN
has/VBZ
made/VBN
it/PRP
tough/JJ
on/IN
competitors/NNS
by/IN
offering/VBG
a/DT
stream/NN
of/IN
desktop/NN
computers/NNS
at/IN
sharply/RB
lower/JJR
prices/NNS
./.
A/DT
year/NN
ago/IN
,/,
Silicon/NNP
Graphics/NNP
introduced/VBD
a/DT
model/NN
priced/VBN
at/IN
$/$
15,000/CD
--/:
almost/RB
as/RB
cheap/JJ
as/IN
mainstream/NN
workstations/NNS
that/WDT
do/VBP
n't/RB
offer/VB
special/JJ
graphics/NNS
features/NNS
./.
Silicon/NNP
Graphics/NNP
also/RB
plans/VBZ
to/TO
unveil/VB
even/RB
less/RBR
expensive/JJ
machines/NNS
in/IN
the/DT
near/JJ
future/NN
./.
``/``
It/PRP
's/VBZ
pretty/RB
safe/JJ
to/TO
assume/VB
we/PRP
can/MD
bring/VB
the/DT
cost/NN
down/IN
of/IN
these/DT
systems/NNS
by/IN
30/CD
%/NN
to/TO
40/CD
%/NN
a/DT
year/NN
,/,
''/''
said/VBD
Edward/NNP
McCracken/NNP
,/,
the/DT
company/NN
's/POS
chief/NN
executive/NN
officer/NN
./.
Silicon/NNP
Graphics/NNP
'/POS
strategy/NN
seems/VBZ
to/TO
be/VB
paying/VBG
off/IN
./.
Revenue/NN
for/IN
its/PRP$
first/JJ
quarter/NN
ended/VBD
Sept./NNP
30/CD
was/VBD
$/$
86.4/CD
million/CD
,/,
a/DT
95/CD
%/NN
increase/NN
over/IN
the/DT
year-ago/JJ
period/NN
./.
Profit/NN
was/VBD
$/$
5.2/CD
million/CD
,/,
compared/VBN
with/IN
$/$
1/CD
million/CD
for/IN
the/DT
year-ago/JJ
quarter/NN
./.
Remember/VB
those/DT
bulky/JJ
,/,
thick-walled/JJ
refrigerators/NNS
of/IN
30/CD
years/NNS
ago/IN
?/.
They/PRP
,/,
or/CC
at/IN
least/JJS
something/NN
less/RBR
efficient/JJ
than/IN
today/NN
's/POS
thin-walled/JJ
units/NNS
,/,
may/MD
soon/RB
be/VB
making/VBG
a/DT
comeback/NN
./.
That/DT
something/NN
,/,
whatever/WDT
it/PRP
is/VBZ
,/,
could/MD
add/VB
as/RB
much/RB
as/IN
$/$
100/CD
to/TO
the/DT
$/$
600/CD
or/CC
so/RB
consumers/NNS
now/RB
pay/VBP
for/IN
lower-priced/JJ
refrigerators/NNS
./.
These/DT
and/CC
other/JJ
expensive/JJ
changes/NNS
in/IN
products/NNS
ranging/VBG
from/IN
auto/NN
air/NN
conditioners/NNS
to/TO
foam/NN
cushioning/NN
to/TO
commercial/JJ
solvents/NNS
are/VBP
in/IN
prospect/NN
because/IN
of/IN
something/NN
called/VBN
the/DT
Montreal/NNP
Protocol/NNP
,/,
signed/VBN
by/IN
24/CD
nations/NNS
in/IN
1987/CD
./.
In/IN
one/CD
of/IN
the/DT
most/RBS
sweeping/JJ
environmental/JJ
regulatory/JJ
efforts/NNS
to/TO
date/NN
--/:
involving/VBG
products/NNS
with/IN
an/DT
annual/JJ
value/NN
of/IN
$/$
135/CD
billion/CD
in/IN
the/DT
U.S./NNP
alone/RB
--/:
the/DT
signatories/NNS
agreed/VBD
to/TO
curtail/VB
sharply/RB
the/DT
use/NN
of/IN
chlorofluorocarbons/NNS
CFCs/NNP
World-wide/JJ
production/NN
would/MD
be/VB
cut/VBN
in/IN
half/DT
by/IN
1998/CD
./.
The/DT
U.S./NNP
Senate/NNP
liked/VBD
the/DT
treaty/NN
so/RB
well/RB
it/PRP
ratified/VBD
it/PRP
by/IN
a/DT
vote/NN
of/IN
89/CD
to/TO
0/CD
./.
Not/RB
to/TO
be/VB
outdone/VBN
,/,
George/NNP
Bush/NNP
wants/VBZ
CFCs/NNP
banished/VBN
altogether/RB
by/IN
the/DT
year/NN
2000/CD
,/,
a/DT
goal/NN
endorsed/VBN
at/IN
an/DT
80-nation/JJ
U.N./NNP
environmental/JJ
meeting/NN
in/IN
Helsinki/NNP
in/IN
the/DT
spring/NN
./.
That/DT
's/VBZ
a/DT
lot/NN
of/IN
banishment/NN
,/,
as/IN
it/PRP
turns/VBZ
out/IN
./.
CFCs/NNP
are/VBP
the/DT
primary/JJ
ingredient/NN
in/IN
a/DT
gas/NN
,/,
often/RB
referred/VBD
to/TO
by/IN
the/DT
Du/NNP
Pont/NNP
trade/NN
name/NN
Freon/NN
,/,
which/WDT
is/VBZ
compressed/VBN
to/TO
liquid/JJ
form/NN
to/TO
serve/VB
as/IN
the/DT
cooling/VBG
agent/NN
in/IN
refrigeration/NN
and/CC
air-conditioning/JJ
equipment/NN
./.
Gases/NNS
containing/VBG
CFCs/NNP
are/VBP
pumped/VBN
into/IN
polyurethane/NN
to/TO
make/VB
the/DT
foam/NN
used/VBN
in/IN
pillows/NNS
,/,
upholstery/NN
and/CC
insulation/NN
./.
Polyurethane/NN
foam/NN
is/VBZ
a/DT
highly/RB
efficient/JJ
insulator/NN
,/,
which/WDT
accounts/VBZ
for/IN
why/WRB
the/DT
walls/NNS
of/IN
refrigerators/NNS
and/CC
freezers/NNS
can/MD
be/VB
thinner/JJR
now/RB
than/IN
they/PRP
were/VBD
back/RB
in/IN
the/DT
days/NNS
when/WRB
they/PRP
were/VBD
insulated/VBN
with/IN
glass/NN
fiber/NN
./.
But/CC
even/RB
though/IN
by/IN
some/DT
estimates/NNS
it/PRP
might/MD
cost/VB
the/DT
world/NN
as/RB
much/RB
as/IN
$/$
100/CD
billion/CD
between/IN
now/RB
and/CC
the/DT
year/NN
2000/CD
to/TO
convert/VB
to/TO
other/JJ
coolants/NNS
,/,
foaming/VBG
agents/NNS
and/CC
solvents/NNS
and/CC
to/TO
redesign/VB
equipment/NN
for/IN
these/DT
less/JJR
efficient/JJ
substitutes/NNS
,/,
the/DT
Montreal/NNP
Protocol/NNP
's/POS
legions/NNS
of/IN
supporters/NNS
say/VBP
it/PRP
is/VBZ
worth/JJ
it/PRP
./.
They/PRP
insist/VBP
that/IN
CFCs/NNS
are/VBP
damaging/VBG
the/DT
earth/NN
's/POS
stratospheric/JJ
ozone/NN
layer/NN
,/,
which/WDT
screens/VBZ
out/IN
some/DT
of/IN
the/DT
sun/NN
's/POS
ultraviolet/NN
rays/NNS
./.
Hence/RB
,/,
as/IN
they/PRP
see/VBP
it/PRP
,/,
if/IN
something/NN
is/VBZ
n't/RB
done/VBN
earthlings/NNS
will/MD
become/VB
ever/RB
more/JJR
subject/JJ
to/TO
sunburn/NN
and/CC
skin/NN
cancer/NN
./.
Peter/NNP
Teagan/NNP
,/,
a/DT
specialist/NN
in/IN
heat/NN
transfer/NN
,/,
is/VBZ
running/VBG
a/DT
project/NN
at/IN
Arthur/NNP
D./NNP
Little/NNP
Inc./NNP
,/,
of/IN
Cambridge/NNP
,/,
Mass./NNP
,/,
to/TO
find/VB
alternative/JJ
technologies/NNS
that/WDT
will/MD
allow/VB
industry/NN
to/TO
eliminate/VB
CFCs/NNS
./.
In/IN
addition/NN
to/TO
his/PRP$
interest/NN
in/IN
ozone/NN
depletion/NN
he/PRP
has/VBZ
extensively/RB
studied/VBN
the/DT
related/VBN
topic/NN
of/IN
global/JJ
warming/NN
,/,
a/DT
theory/NN
that/IN
mankind/NN
's/POS
generation/NN
of/IN
carbon/NN
dioxide/NN
through/IN
increased/VBN
combustion/NN
of/IN
fossil/JJ
fuels/NNS
is/VBZ
creating/VBG
a/DT
``/``
greenhouse/NN
effect/NN
''/''
that/WDT
will/MD
work/VB
important/JJ
climatic/JJ
changes/NNS
in/IN
the/DT
earth/NN
's/POS
atmosphere/NN
over/IN
time/NN
./.
``/``
I/PRP
would/MD
be/VB
the/DT
first/JJ
to/TO
admit/VB
that/IN
there/EX
is/VBZ
not/RB
a/DT
complete/JJ
consensus/NN
in/IN
the/DT
scientific/JJ
community/NN
on/IN
either/DT
one/CD
of/IN
these/DT
problems/NNS
,/,
''/''
says/VBZ
Mr./NNP
Teagan/NNP
./.
``/``
In/IN
the/DT
kind/NN
of/IN
literature/NN
I/PRP
read/VBP
I/PRP
come/VBP
across/IN
countervailing/VBG
opinions/NNS
quite/RB
frequently/RB
./.
But/CC
the/DT
nature/NN
of/IN
the/DT
problem/NN
is/VBZ
such/JJ
that/IN
many/JJ
others/NNS
feel/VBP
it/PRP
has/VBZ
to/TO
be/VB
addressed/VBN
soon/RB
,/,
before/IN
all/PDT
the/DT
evidence/NN
is/VBZ
in/IN
./.
We/PRP
ca/MD
n't/RB
afford/VB
to/TO
wait/VB
./.
''/''
But/CC
does/VBZ
it/PRP
have/VB
to/TO
be/VB
so/RB
soon/RB
?/.
Some/DT
atmospheric/JJ
scientists/NNS
think/VBP
that/IN
even/RB
if/IN
CFCs/NNS
were/VBD
released/VBN
into/IN
the/DT
atmosphere/NN
at/IN
an/DT
accelerating/VBG
rate/NN
,/,
the/DT
amount/NN
of/IN
ozone/NN
depletion/NN
would/MD
be/VB
only/RB
10/CD
%/NN
by/IN
the/DT
middle/NN
of/IN
the/DT
next/JJ
century/NN
./.
It/PRP
's/VBZ
easy/JJ
to/TO
get/VB
something/NN
comparable/JJ
by/IN
simply/RB
moving/VBG
to/TO
a/DT
higher/JJR
altitude/NN
in/IN
the/DT
U.S/NNP
./.
Moreover/RB
,/,
there/EX
are/VBP
questions/NNS
,/,
particularly/RB
among/IN
atmospheric/JJ
scientists/NNS
who/WP
know/VBP
this/DT
subject/NN
best/RB
,/,
about/IN
the/DT
ability/NN
of/IN
anyone/NN
to/TO
know/VB
what/WP
in/IN
fact/NN
is/VBZ
happening/VBG
to/TO
the/DT
ozone/NN
layer/NN
./.
It/PRP
is/VBZ
generally/RB
agreed/VBN
that/IN
when/WRB
CFCs/NNP
rise/NN
from/IN
earth/NN
to/TO
stratosphere/NN
,/,
the/DT
chlorine/NN
in/IN
them/PRP
is/VBZ
capable/JJ
of/IN
interfering/VBG
with/IN
the/DT
process/NN
through/IN
which/WDT
ultraviolet/NN
rays/NNS
split/VBD
oxygen/NN
molecules/NNS
and/CC
form/NN
ozone/NN
./.
But/CC
ozone/NN
creation/NN
is/VBZ
a/DT
very/RB
large-scale/JJ
natural/JJ
process/NN
and/CC
the/DT
importance/NN
of/IN
human-generated/JJ
CFCs/NNP
in/IN
reducing/VBG
it/PRP
is/VBZ
largely/RB
a/DT
matter/NN
of/IN
conjecture/NN
./.
The/DT
ozone/NN
layer/NN
is/VBZ
constantly/RB
in/IN
motion/NN
and/CC
thus/RB
very/RB
hard/JJ
to/TO
measure/VB
./.
What/WP
scientists/NNS
have/VBP
known/VBN
since/IN
the/DT
late/JJ
1970s/CD
is/VBZ
that/IN
there/EX
is/VBZ
a/DT
hole/NN
in/IN
the/DT
layer/NN
over/IN
Antarctica/NNP
that/WDT
expands/VBZ
or/CC
contracts/VBZ
from/IN
year/NN
to/TO
year/NN
./.
But/CC
it/PRP
is/VBZ
at/IN
least/JJS
worthy/JJ
of/IN
some/DT
note/NN
that/IN
there/EX
are/VBP
very/RB
few/JJ
refrigerators/NNS
in/IN
Antarctica/NNP
./.
Moreover/RB
,/,
surely/RB
someone/NN
has/VBZ
noticed/VBN
that/IN
household/NN
refrigerators/NNS
are/VBP
closed/VBN
systems/NNS
,/,
running/VBG
for/IN
many/JJ
years/NNS
without/IN
either/CC
the/DT
CFC/NNP
gas/NN
or/CC
the/DT
insulation/NN
ever/RB
escaping/VBG
./.
Another/DT
argument/NN
of/IN
the/DT
environmentalists/NNS
is/VBZ
that/IN
if/IN
substitutes/NNS
are/VBP
available/JJ
,/,
why/WRB
not/RB
use/VB
them/PRP
?/.
Mr./NNP
Teagan/NNP
cites/VBZ
a/DT
list/NN
of/IN
substitutes/NNS
but/CC
none/NN
,/,
so/RB
far/RB
,/,
match/VBP
the/DT
nonflammable/JJ
,/,
nontoxic/JJ
CFCs/NNP
./.
Butane/NN
and/CC
propane/NN
can/MD
be/VB
used/VBN
as/IN
coolants/NNS
,/,
for/IN
example/NN
,/,
but/CC
are/VBP
flammable/JJ
./.
Moreover/RB
,/,
new/JJ
lubricants/NNS
will/MD
be/VB
needed/VBN
to/TO
protect/VB
compressors/NNS
from/IN
the/DT
new/JJ
formulations/NNS
,/,
which/WDT
,/,
as/IN
with/IN
CFCs/NNP
,/,
are/VBP
solvents/NNS
./.
Mr./NNP
Teagan/NNP
points/VBZ
out/IN
as/RB
well/RB
that/IN
if/IN
the/DT
equipment/NN
designed/VBN
to/TO
get/VB
along/IN
without/IN
CFCs/NNP
is/VBZ
less/RBR
efficient/JJ
than/IN
current/JJ
devices/NNS
,/,
energy/NN
consumption/NN
will/MD
rise/VB
and/CC
that/WDT
will/MD
worsen/VB
the/DT
greenhouse/NN
effect/NN
./.
Folks/NNS
in/IN
the/DT
Midwest/NN
who/WP
just/RB
suffered/VBD
a/DT
mid-October/JJ
snowstorm/NN
may/MD
wonder/VB
where/WRB
the/DT
greenhouse/NN
was/VBD
when/WRB
they/PRP
needed/VBD
it/PRP
,/,
but/CC
let/VB
's/PRP
not/RB
be/VB
flippant/JJ
about/IN
grave/JJ
risks/NNS
./.
As/IN
it/PRP
happens/VBZ
,/,
Arthur/NNP
D./NNP
Little/NNP
is/VBZ
not/RB
at/IN
all/DT
interested/VBN
in/IN
throwing/VBG
cold/JJ
water/NN
on/IN
ozone/NN
depletion/NN
and/CC
global/JJ
warming/NN
theories/NNS
./.
It/PRP
is/VBZ
interested/VBN
in/IN
making/VBG
some/DT
money/NN
advising/VBG
industry/NN
on/IN
how/WRB
to/TO
convert/VB
to/TO
a/DT
world/NN
without/IN
CFCs/NNP
./.
There/EX
is/VBZ
,/,
after/IN
all/DT
,/,
big/JJ
money/NN
in/IN
environmentalism/NN
./.
Maybe/RB
we/PRP
should/MD
ask/VB
why/WRB
it/PRP
was/VBD
that/IN
Du/NNP
Pont/NNP
so/RB
quickly/RB
capitulated/VBD
and/CC
issued/VBN
a/DT
statement/NN
,/,
giving/VBG
it/PRP
wide/JJ
publicity/NN
,/,
that/IN
it/PRP
was/VBD
withdrawing/VBG
CFCs/NNP
./.
Freon/NN
,/,
introduced/VBN
in/IN
1930/CD
,/,
revolutionized/VBD
America/NNP
by/IN
making/VBG
refrigeration/NN
and/CC
air/NN
conditioning/NN
practical/JJ
after/IN
all/DT
./.
One/CD
answer/NN
is/VBZ
that/IN
big/JJ
companies/NNS
are/VBP
growing/VBG
weary/JJ
of/IN
fighting/VBG
environmental/JJ
movements/NNS
and/CC
are/VBP
trying/VBG
instead/RB
to/TO
cash/VB
in/IN
on/IN
them/PRP
,/,
although/IN
they/PRP
never/RB
care/VBP
to/TO
put/VB
it/PRP
quite/RB
that/DT
way/NN
./.
Du/NNP
Pont/NNP
,/,
as/IN
it/PRP
happens/VBZ
,/,
has/VBZ
a/DT
potential/JJ
substitute/NN
for/IN
CFCs/NNP
./.
Imperial/NNP
Chemical/NNP
Industries/NNPS
of/IN
the/DT
U.K./NNP
also/RB
has/VBZ
one/CD
,/,
and/CC
is/VBZ
building/VBG
a/DT
plant/NN
in/IN
Louisiana/NNP
to/TO
produce/VB
it/PRP
./.
Japanese/JJ
chemical/NN
companies/NNS
are/VBP
at/IN
work/NN
developing/VBG
their/PRP$
own/JJ
substitutes/NNS
and/CC
hoping/VBG
to/TO
conquer/VB
new/JJ
markets/NNS
,/,
of/IN
course/NN
./.
There/EX
are/VBP
still/RB
others/NNS
who/WP
do/VBP
n't/RB
mind/VB
seeing/VBG
new/JJ
crises/NNS
arise/VB
./.
Environmental/JJ
groups/NNS
would/MD
soon/RB
go/VB
out/IN
of/IN
business/NN
were/VBD
they/PRP
not/RB
able/JJ
to/TO
send/VB
out/IN
mailings/NNS
describing/VBG
the/DT
latest/JJS
threat/NN
and/CC
asking/VBG
for/IN
money/NN
to/TO
fight/VB
it/PRP
./.
University/NN
professors/NNS
and/CC
consultants/NNS
with/IN
scientific/JJ
credentials/NNS
saw/VBD
a/DT
huge/JJ
market/NN
for/IN
their/PRP$
services/NNS
evaporate/VB
when/WRB
price/NN
decontrol/NN
destroyed/VBD
the/DT
energy/NN
crisis/NN
and/CC
thus/RB
the/DT
demand/NN
for/IN
``/``
alternative/NN
energy/NN
./.
''/''
They/PRP
needed/VBD
new/JJ
crises/NNS
to/TO
generate/VB
new/JJ
grants/NNS
and/CC
contracts/NNS
./.
In/IN
other/JJ
words/NNS
,/,
environmentalism/NN
has/VBZ
created/VBN
a/DT
whole/JJ
set/NN
of/IN
vested/VBN
interests/NNS
that/WDT
fare/VBP
better/RB
when/WRB
there/EX
are/VBP
many/JJ
problems/NNS
than/IN
when/WRB
there/EX
are/VBP
few/JJ
./.
That/DT
tends/VBZ
to/TO
tilt/VB
the/DT
public/JJ
debate/NN
toward/IN
``/``
solutions/NNS
''/''
even/RB
when/WRB
some/DT
of/IN
the/DT
most/RBS
knowledgeable/JJ
scientists/NNS
are/VBP
skeptical/JJ
about/IN
the/DT
seriousness/NN
of/IN
the/DT
threats/NNS
and/CC
the/DT
insistence/NN
of/IN
urgency/NN
./.
There/EX
is/VBZ
an/DT
element/NN
of/IN
make-work/NN
involved/VBN
./.
Consumers/NNS
pay/VBP
the/DT
bill/NN
for/IN
all/PDT
this/DT
in/IN
the/DT
price/NN
of/IN
a/DT
refrigerator/NN
or/CC
an/DT
air-conditioned/JJ
car/NN
./.
If/IN
they/PRP
were/VBD
really/RB
getting/VBG
insurance/NN
against/IN
environmental/JJ
disaster/NN
,/,
the/DT
price/NN
would/MD
be/VB
cheap/JJ
./.
But/CC
if/IN
there/EX
is/VBZ
no/DT
impending/JJ
threat/NN
,/,
it/PRP
can/MD
get/VB
to/TO
be/VB
very/RB
expensive/JJ
./.
but/CC
worries/NNS
about/IN
1990/CD
./.
With/IN
most/JJS
legislatures/NNS
adjourned/VBN
for/IN
the/DT
year/NN
,/,
small/JJ
business/NN
is/VBZ
tallying/VBG
its/PRP$
scorecard/NN
./.
Much/RB
of/IN
its/PRP$
attention/NN
was/VBD
spent/VBN
fighting/VBG
organized/VBN
labor/NN
's/POS
initiatives/NNS
on/IN
issues/NNS
the/DT
small-business/NN
community/NN
traditionally/RB
opposes/VBZ
--/:
from/IN
raising/VBG
state/NN
minimum/NN
wage/NN
levels/NNS
to/TO
mandating/VBG
benefits/NNS
in/IN
health/NN
plans/NNS
./.
While/IN
results/NNS
were/VBD
mixed/VBN
in/IN
many/JJ
states/NNS
,/,
``/``
small/JJ
business/NN
got/VBD
by/IN
fairly/RB
well/RB
,/,
''/''
concludes/VBZ
Don/NNP
L./NNP
Robinson/NNP
,/,
associate/JJ
director/NN
of/IN
the/DT
National/NNP
Federation/NNP
of/IN
Independent/NNP
Business/NNP
,/,
the/DT
largest/JJS
small-business/NN
organization/NN
./.
Five/CD
states/NNS
--/:
Oregon/NNP
,/,
Rhode/NNP
Island/NNP
,/,
New/NNP
Hampshire/NNP
,/,
Iowa/NNP
and/CC
Wisconsin/NNP
--/:
passed/VBD
bills/NNS
to/TO
boost/VB
the/DT
minimum/JJ
wage/NN
,/,
but/CC
measures/NNS
in/IN
19/CD
other/JJ
states/NNS
were/VBD
defeated/VBN
./.
Oregon/NNP
's/POS
rate/NN
will/MD
rise/VB
to/TO
$/$
4.75/CD
an/DT
hour/NN
,/,
the/DT
nation/NN
's/POS
highest/JJS
,/,
in/IN
Jan./NNP
1/CD
,/,
1991/CD
./.
Iowa/NNP
's/POS
will/MD
be/VB
the/DT
second/JJ
highest/JJS
--/:
at/IN
$/$
4.65/CD
an/DT
hour/NN
in/IN
January/NNP
1992/CD
--/:
but/CC
small-business/NN
lobbyists/NNS
won/VBD
an/DT
exclusion/NN
for/IN
tiny/JJ
concerns/NNS
and/CC
a/DT
lower/JJR
training/NN
rate/NN
./.
In/IN
17/CD
central/JJ
states/NNS
,/,
one/CD
small-business/NN
count/NN
shows/VBZ
lawmakers/NNS
adopted/VBD
only/RB
three/CD
of/IN
46/CD
bills/NNS
mandating/VBG
health/NN
coverage/NN
or/CC
parental/JJ
leave/NN
./.
The/DT
Illinois/NNP
Legislature/NNP
narrowly/RB
passed/VBD
a/DT
parental-leave/JJ
bill/NN
,/,
which/WDT
Gov./NNP
James/NNP
Thompson/NNP
vetoed/VBD
,/,
and/CC
Iowa/NNP
and/CC
Tennessee/NNP
amended/VBD
laws/NNS
to/TO
require/VB
that/IN
employers/NNS
pay/VB
for/IN
breast-cancer/NN
exams/NNS
./.
Small/JJ
business/NN
is/VBZ
bracing/VBG
for/IN
an/DT
avalanche/NN
of/IN
similar/JJ
proposals/NNS
next/IN
year/NN
./.
``/``
Those/DT
kinds/NNS
of/IN
issues/NNS
always/RB
keep/VBP
coming/VBG
back/RB
,/,
''/''
says/VBZ
Robert/NNP
Beckwith/NNP
,/,
who/WP
manages/VBZ
the/DT
Illinois/NNP
Chamber/NNP
of/IN
Commerce/NNP
's/POS
small-business/NN
office/NN
./.
DESPITE/IN
VICTORIES/NNS
this/DT
year/NN
,/,
small/JJ
business/NN
fears/NNS
losing/VBG
parental-leave/JJ
war/NN
./.
Only/RB
two/CD
states/NNS
--/:
Vermont/NNP
and/CC
Washington/NNP
--/:
this/DT
year/NN
joined/VBD
five/CD
others/NNS
requiring/VBG
private/JJ
employers/NNS
to/TO
grant/VB
leaves/NNS
of/IN
absence/NN
to/TO
employees/NNS
with/IN
newborn/JJ
or/CC
adopted/VBN
infants/NNS
./.
Similar/JJ
proposals/NNS
were/VBD
defeated/VBN
in/IN
at/IN
least/JJS
15/CD
other/JJ
states/NNS
./.
But/CC
small/JJ
business/NN
,/,
which/WDT
generally/RB
detests/VBZ
government-mandated/JJ
benefits/NNS
,/,
has/VBZ
taken/VBN
note/NN
of/IN
the/DT
growing/VBG
number/NN
of/IN
close/JJ
votes/NNS
./.
``/``
It/PRP
's/VBZ
just/RB
a/DT
matter/NN
of/IN
time/NN
before/IN
the/DT
tide/NN
turns/VBZ
,/,
''/''
says/VBZ
one/CD
Midwestern/JJ
lobbyist/NN
./.
Consequently/RB
,/,
small/JJ
business/NN
is/VBZ
taking/VBG
more/RBR
``/``
pro-active/JJ
''/''
steps/NNS
to/TO
counter/VB
mandated/VBN
leaves/NNS
./.
In/IN
Pennsylvania/NNP
,/,
small/JJ
businesses/NNS
are/VBP
pushing/VBG
for/IN
a/DT
voluntary/JJ
alternative/NN
;/:
they/PRP
favor/VBP
a/DT
commission/NN
that/WDT
would/MD
develop/VB
sample/NN
leave/NN
policies/NNS
that/IN
employers/NNS
could/MD
adopt/VB
./.
They/PRP
also/RB
support/VBP
a/DT
tax/NN
credit/NN
for/IN
employers/NNS
to/TO
offset/VB
the/DT
cost/NN
of/IN
hiring/VBG
and/CC
training/VBG
workers/NNS
who/WP
temporarily/RB
replace/VBP
employees/NNS
on/IN
parental/JJ
leave/NN
./.
In/IN
1990/CD
,/,
the/DT
issue/NN
is/VBZ
expected/VBN
to/TO
be/VB
especially/RB
close/JJ
in/IN
Alaska/NNP
,/,
California/NNP
,/,
Michigan/NNP
,/,
New/NNP
York/NNP
,/,
Pennsylvania/NNP
and/CC
Illinois/NNP
./.
``/``
We/PRP
'll/MD
be/VB
playing/VBG
a/DT
lot/NN
of/IN
defense/NN
,/,
especially/RB
in/IN
the/DT
Midwest/NNP
and/CC
Northeast/NNP
,/,
''/''
says/VBZ
Jim/NNP
Buente/NNP
of/IN
the/DT
NFIB/NNP
./.
IN/IN
LOS/NNP
ANGELES/NNP
,/,
more/RBR
small/JJ
businesses/NNS
ponder/VBP
adopting/VBG
a/DT
child-care/JJ
policy/NN
./.
Triggering/VBG
the/DT
re-examination/NN
is/VBZ
a/DT
recent/JJ
city/NN
council/NN
decision/NN
to/TO
give/VB
preference/NN
in/IN
letting/VBG
city/NN
contracts/NNS
to/TO
suppliers/NNS
with/IN
a/DT
stated/VBN
policy/NN
on/IN
child/NN
care/NN
for/IN
their/PRP$
employees/NNS
./.
The/DT
preferential/JJ
treatment/NN
even/RB
applies/VBZ
to/TO
awarding/VBG
small/JJ
contracts/NNS
under/IN
$/$
25,000/CD
and/CC
consulting/VBG
and/CC
temporary/JJ
services/NNS
--/:
which/WDT
often/RB
go/VBP
to/TO
the/DT
smaller/JJR
concerns/NNS
./.
Firms/NNS
are/VBP
permitted/VBN
wide/JJ
flexibility/NN
in/IN
the/DT
child-care/JJ
arrangements/NNS
they/PRP
provide/VBP
./.
Council/NN
member/NN
Joy/NNP
Picus/NNP
,/,
the/DT
measure/NN
's/POS
chief/NN
advocate/NN
,/,
considers/VBZ
it/PRP
part/NN
of/IN
a/DT
``/``
pro-family/NN
policy/NN
''/''
that/WDT
makes/VBZ
Los/NNP
Angeles/NNP
a/DT
leader/NN
in/IN
``/``
humanizing/VBG
the/DT
workplace/NN
./.
''/''
NOVEMBER/NNP
BALLOTS/NNS
will/MD
contain/VB
few/JJ
referendum/NN
or/CC
initiative/NN
issues/NNS
that/WDT
especially/RB
affect/VBP
small/JJ
business/NN
./.
In/IN
San/NNP
Francisco/NNP
,/,
small/JJ
businesses/NNS
are/VBP
urging/VBG
passage/NN
of/IN
a/DT
local/JJ
initiative/NN
to/TO
build/VB
a/DT
new/JJ
$/$
95/CD
million/CD
downtown/NN
baseball/NN
stadium/NN
;/:
they/PRP
believe/VBP
it/PRP
will/MD
spur/VB
retail/JJ
sales/NNS
and/CC
hotel-restaurant/NN
business/NN
./.
But/CC
in/IN
Washington/NNP
state/NN
,/,
small/JJ
business/NN
generally/RB
opposes/VBZ
an/DT
initiative/NN
to/TO
boost/VB
spending/VBG
on/IN
children/NNS
's/POS
programs/NNS
by/IN
$/$
360/CD
million/CD
,/,
fearing/VBG
the/DT
state/NN
's/POS
7.8/CD
%/NN
sales/NNS
tax/NN
will/MD
be/VB
raised/VBN
to/TO
finance/VB
the/DT
outlays/NNS
./.
DIALING/NNP
DOLLARS/NNPS
:/:
Small/JJ
businesses/NNS
in/IN
suburban/JJ
Chicago/NNP
are/VBP
discovering/VBG
that/IN
an/DT
area-code/JJ
switch/NN
Nov./NNP
11/CD
--/:
to/TO
708/CD
from/IN
the/DT
familiar/JJ
312/CD
--/:
wo/MD
n't/RB
be/VB
without/IN
some/DT
costs/NNS
as/IN
they/PRP
alter/VBP
stationery/NN
,/,
among/IN
other/JJ
things/NNS
,/,
and/CC
notify/VBP
customers/NNS
./.
Wessels/NNP
&/CC
Pautsch/NNP
,/,
a/DT
small/JJ
St./NNP
Charles/NNP
law/NN
firm/NN
,/,
plans/VBZ
to/TO
mail/VB
500/CD
customers/NNS
a/DT
list/NN
of/IN
its/PRP$
lawyers/NNS
'/POS
new/JJ
phone/NN
and/CC
fax/NN
numbers/NNS
as/RB
well/RB
as/IN
updated/VBN
Rolodex/NNP
cards/NNS
./.
But/CC
many/JJ
owners/NNS
plan/VBP
to/TO
practice/VB
frugality/NN
--/:
crossing/VBG
out/IN
the/DT
old/JJ
code/NN
and/CC
writing/VBG
in/IN
the/DT
new/JJ
one/CD
until/IN
their/PRP$
stock/NN
runs/VBZ
out/IN
./.
Even/RB
print-shop/NN
operator/NN
Clay/NNP
Smith/NNP
of/IN
Naperville/NNP
wo/MD
n't/RB
discard/VB
his/PRP$
old/JJ
supply/NN
./.
He/PRP
reports/VBZ
his/PRP$
business/NN
is/VBZ
up/IN
slightly/RB
from/IN
customers/NNS
replacing/VBG
old/JJ
stock/NN
./.
CALIFORNIA/NNP
,/,
A/DT
TREND-SETTER/NN
in/IN
franchising/VBG
rules/NNS
,/,
stirs/VBZ
a/DT
controversy/NN
./.
With/IN
some/DT
new/JJ
rules/NNS
,/,
state/NN
officials/NNS
say/VBP
they/PRP
made/VBD
it/PRP
easier/JJR
--/:
and/CC
faster/JJR
--/:
to/TO
sell/VB
new/JJ
franchises/NNS
whose/WP$
terms/NNS
stray/VBP
from/IN
those/DT
in/IN
state-registered/JJ
contracts/NNS
./.
Previously/RB
,/,
regulators/NNS
insisted/VBD
that/IN
franchisers/NNS
pre-register/VB
such/JJ
changes/NNS
with/IN
the/DT
state/NN
--/:
a/DT
costly/JJ
process/NN
taking/VBG
at/IN
least/JJS
six/CD
weeks/NNS
./.
Now/RB
some/DT
negotiated/VBN
sales/NNS
that/WDT
meet/VBP
a/DT
series/NN
of/IN
tests/NNS
do/VBP
n't/RB
have/VB
to/TO
be/VB
pre-registered/VBN
./.
For/IN
instance/NN
,/,
franchisers/NNS
no/RB
longer/RB
must/MD
pre-register/VB
sales/NNS
to/TO
aspiring/VBG
franchisees/NNS
who/WP
qualify/VBP
as/IN
``/``
sophisticated/JJ
purchasers/NNS
./.
''/''
Such/JJ
buyers/NNS
must/MD
have/VB
a/DT
minimum/JJ
net/JJ
worth/NN
of/IN
$/$
1/CD
million/CD
,/,
$/$
200,000/CD
annual/JJ
income/NN
,/,
or/CC
recent/JJ
experience/NN
in/IN
the/DT
business/NN
area/NN
of/IN
the/DT
franchise/NN
being/VBG
sold/VBN
./.
But/CC
critics/NNS
consider/VBP
the/DT
changes/NNS
regressive/JJ
./.
Lewis/NNP
G./NNP
Rudnick/NNP
,/,
a/DT
Chicago/NNP
lawyer/NN
who/WP
represents/VBZ
franchisers/NNS
,/,
contends/VBZ
California/NNP
is/VBZ
narrowly/RB
limiting/VBG
--/:
rather/RB
than/IN
expanding/VBG
--/:
opportunities/NNS
for/IN
negotiating/VBG
sales/NNS
./.
He/PRP
argues/VBZ
California/NNP
regulators/NNS
historically/RB
have/VBP
misinterpreted/VBN
their/PRP$
law/NN
--/:
and/CC
he/PRP
says/VBZ
negotiated/VBN
sales/NNS
that/WDT
are/VBP
n't/RB
pre-registered/JJ
have/VBP
been/VBN
legal/JJ
all/DT
along/IN
./.
San/NNP
Francisco/NNP
lawyer/NN
Timothy/NNP
H./NNP
Fine/NNP
,/,
who/WP
represents/VBZ
franchisees/NNS
,/,
insists/VBZ
California/NNP
's/POS
cautiousness/NN
helps/VBZ
protect/VB
franchisees/NNS
from/IN
crafty/JJ
sales/NNS
negotiators/NNS
who/WP
push/VBP
unlawful/JJ
clauses/NNS
./.
SMALL/NNP
TALK/NNP
:/:
A/DT
new/JJ
Maryland/NNP
law/NN
frees/VBZ
store/NN
owners/NNS
of/IN
liability/NN
if/IN
a/DT
customer/NN
trips/NNS
or/CC
otherwise/RB
gets/VBZ
hurt/NN
on/IN
the/DT
way/NN
to/TO
the/DT
restroom/NN
.../:
./.
Only/RB
4/CD
%/NN
of/IN
Missouri/NNP
small/JJ
businesses/NNS
surveyed/VBN
say/VBP
they/PRP
've/VBP
tested/VBN
an/DT
employee/NN
or/CC
applicant/NN
for/IN
drug/NN
or/CC
alcohol/NN
use/NN
.../:
./.
By/IN
52%-36/CD
%/NN
,/,
Tennessee/NNP
NFIB/NNP
members/NNS
favor/VBP
laws/NNS
to/TO
limit/VB
foreign/JJ
ownership/NN
of/IN
land/NN
and/CC
facilities/NNS
in/IN
the/DT
state/NN
./.
About/IN
400,000/CD
commuters/NNS
trying/VBG
to/TO
find/VB
their/PRP$
way/NN
through/IN
the/DT
Bay/NNP
area/NN
's/POS
quake-torn/JJ
transportation/NN
system/NN
wedged/VBD
cheek-to-jowl/RB
into/IN
subways/NNS
,/,
sat/VBD
in/IN
traffic/NN
jams/NNS
on/IN
major/JJ
freeways/NNS
or/CC
waited/VBD
forlornly/RB
for/IN
buses/NNS
yesterday/NN
./.
In/IN
other/JJ
words/NNS
,/,
it/PRP
was/VBD
a/DT
better-than-average/JJ
Manhattan/NNP
commute/NN
./.
City/NN
officials/NNS
feared/VBD
widespread/JJ
gridlock/NN
on/IN
the/DT
first/JJ
day/NN
that/IN
normal/JJ
business/NN
operations/NNS
were/VBD
resumed/VBN
following/VBG
last/JJ
Tuesday/NNP
's/POS
earthquake/NN
./.
The/DT
massive/JJ
temblor/NN
,/,
which/WDT
killed/VBD
at/IN
least/JJS
61/CD
people/NNS
,/,
severed/VBD
the/DT
Bay/NNP
Bridge/NNP
,/,
a/DT
major/JJ
artery/NN
to/TO
the/DT
east/JJ
,/,
and/CC
closed/VBD
most/JJS
ramps/NNS
leading/VBG
to/TO
and/CC
from/IN
Highway/NN
101/CD
,/,
the/DT
biggest/JJS
artery/NN
to/TO
the/DT
south/NN
./.
It/PRP
will/MD
take/VB
several/JJ
weeks/NNS
to/TO
repair/VB
the/DT
bridge/NN
,/,
and/CC
several/JJ
months/NNS
to/TO
repair/VB
some/DT
of/IN
the/DT
101/CD
connections/NNS
./.
But/CC
in/IN
spite/NN
of/IN
a/DT
wind-driven/JJ
rainstorm/NN
,/,
gridlock/NN
never/RB
materialized/VBD
,/,
mainly/RB
because/IN
the/DT
Bay/NNP
Area/NNP
Rapid/NNP
Transit/NNP
subway/NN
system/NN
carried/VBD
50/CD
%/NN
more/JJR
passengers/NNS
than/IN
normal/JJ
./.
For/IN
the/DT
first/JJ
time/NN
in/IN
memory/NN
,/,
it/PRP
was/VBD
standing-room/NN
only/RB
in/IN
BART/NNP
's/POS
sleek/JJ
,/,
modern/JJ
railcars/NNS
./.
Moreover/RB
,/,
the/DT
two/CD
main/JJ
bridges/NNS
still/RB
connecting/VBG
San/NNP
Francisco/NNP
with/IN
the/DT
East/NNP
Bay/NNP
did/VBD
n't/RB
charge/NN
tolls/NNS
,/,
allowing/VBG
traffic/NN
to/TO
zip/VB
through/IN
without/IN
stopping/VBG
./.
Officials/NNS
also/RB
suspect/VBP
that/DT
traffic/NN
benefited/VBD
from/IN
steps/NNS
by/IN
major/JJ
employers/NNS
to/TO
get/VB
workers/NNS
to/TO
come/VB
in/IN
at/IN
odd/JJ
hours/NNS
,/,
or/CC
that/IN
many/JJ
workers/NNS
are/VBP
still/RB
staying/VBG
at/IN
home/NN
./.
Many/JJ
commuters/NNS
who/WP
normally/RB
drove/VBD
across/IN
the/DT
Bay/NNP
Bridge/NNP
,/,
which/WDT
is/VBZ
shut/VBN
down/IN
for/IN
several/JJ
weeks/NNS
because/IN
of/IN
damage/NN
to/TO
one/CD
span/NN
,/,
actually/RB
may/MD
have/VB
reached/VBD
work/NN
a/DT
bit/NN
faster/RBR
on/IN
BART/NNP
yesterday/NN
,/,
provided/VBN
they/PRP
could/MD
find/VB
a/DT
parking/NN
space/NN
at/IN
the/DT
system/NN
's/POS
jammed/VBN
stations/NNS
./.
In/IN
the/DT
best/JJS
of/IN
times/NNS
,/,
the/DT
Bay/NNP
Bridge/NNP
is/VBZ
the/DT
worst/JJS
commute/NN
in/IN
the/DT
region/NN
,/,
often/RB
experiencing/VBG
back-ups/NNS
of/IN
20/CD
to/TO
30/CD
minutes/NNS
or/CC
more/JJR
./.
Not/RB
that/IN
getting/VBG
into/IN
town/NN
was/VBD
easy/JJ
./.
Storm/NN
flooding/NN
caused/VBD
back-ups/NNS
on/IN
the/DT
freeway/NN
,/,
and/CC
many/JJ
commuters/NNS
had/VBD
to/TO
find/VB
rides/NNS
to/TO
BART/NNP
's/POS
stations/NNS
,/,
because/IN
parking/NN
lots/NNS
were/VBD
full/JJ
before/IN
dawn/NN
./.
Bus/NN
schedules/NNS
were/VBD
sometimes/RB
in/IN
disarray/NN
,/,
stranding/VBG
commuters/NNS
such/JJ
as/IN
Marilyn/NNP
Sullivan/NNP
./.
Her/PRP
commute/NN
from/IN
Petaluma/NNP
,/,
Calif./NNP
,/,
normally/RB
takes/VBZ
an/DT
hour/NN
and/CC
15/CD
minutes/NNS
,/,
via/IN
the/DT
Golden/NNP
Gate/NNP
Bridge/NNP
,/,
which/WDT
connects/VBZ
San/NNP
Francisco/NNP
with/IN
the/DT
North/NNP
Bay/NNP
area/NN
./.
Yesterday/NN
,/,
she/PRP
was/VBD
still/RB
waiting/VBG
at/IN
a/DT
bus/NN
stop/NN
after/IN
three/CD
hours/NNS
,/,
trying/VBG
to/TO
transfer/VB
to/TO
a/DT
bus/NN
going/VBG
to/TO
the/DT
financial/JJ
district/NN
./.
``/``
It/PRP
's/VBZ
worse/JJR
than/IN
I/PRP
thought/VBD
,/,
''/''
she/PRP
said/VBD
./.
``/``
I/PRP
do/VBP
n't/RB
know/VB
where/WRB
all/PDT
the/DT
buses/NNS
are/VBP
./.
''/''
But/CC
while/IN
traffic/NN
was/VBD
heavy/JJ
early/JJ
in/IN
the/DT
commute/NN
over/IN
the/DT
Golden/NNP
Gate/NNP
,/,
by/IN
8/CD
a.m./NN
it/PRP
already/RB
had/VBD
thinned/VBN
out/IN
./.
``/``
It/PRP
's/VBZ
one/CD
of/IN
the/DT
smoothest/JJS
commutes/NNS
I/PRP
've/VBP
ever/RB
had/VBN
,/,
''/''
said/VBD
Charles/NNP
Catania/NNP
,/,
an/DT
insurance/NN
broker/NN
on/IN
the/DT
bus/NN
from/IN
Mill/NNP
Valley/NNP
in/IN
Marin/NNP
County/NNP
./.
``/``
It/PRP
looks/VBZ
like/IN
a/DT
holiday/NN
./.
I/PRP
think/VBP
a/DT
lot/NN
of/IN
people/NNS
got/VBD
scared/VBN
and/CC
stayed/VBN
home/NN
./.
''/''
However/RB
,/,
a/DT
spokeswoman/NN
for/IN
BankAmerica/NNP
Corp./NNP
said/VBD
yesterday/NN
's/POS
absenteeism/NN
at/IN
the/DT
bank/NN
holding/VBG
company/NN
was/VBD
no/RB
greater/JJR
than/IN
on/IN
an/DT
average/JJ
day/NN
./.
At/IN
the/DT
San/NNP
Mateo/NNP
Bridge/NNP
,/,
which/WDT
connects/VBZ
the/DT
San/NNP
Francisco/NNP
peninsula/NN
with/IN
the/DT
East/NNP
Bay/NNP
,/,
police/NNS
were/VBD
surprised/VBN
at/IN
the/DT
speed/NN
with/IN
which/WDT
traffic/NN
moved/VBD
./.
``/``
Everybody/NN
pretty/RB
much/RB
pitched/VBD
in/IN
and/CC
cooperated/VBD
,/,
''/''
said/VBD
Stan/NNP
Perez/NNP
,/,
a/DT
sergeant/NN
with/IN
the/DT
California/NNP
Highway/NNP
Patrol/NNP
./.
There/EX
were/VBD
many/JJ
indications/NNS
that/IN
the/DT
new/JJ
work/NN
hours/NNS
implemented/VBN
by/IN
major/JJ
corporations/NNS
played/VBD
a/DT
big/JJ
role/NN
./.
The/DT
Golden/NNP
Gate/NNP
handled/VBD
as/IN
many/JJ
cars/NNS
as/RB
normally/RB
yesterday/NN
,/,
but/CC
over/IN
four/CD
hours/NNS
rather/RB
than/IN
the/DT
usual/JJ
two-hour/JJ
crush/NN
./.
Bechtel/NNP
Group/NNP
Inc./NNP
,/,
the/DT
giant/NN
closely/RB
held/VBD
engineering/NN
concern/NN
,/,
says/VBZ
it/PRP
has/VBZ
instituted/VBN
a/DT
6/CD
a.m./NN
to/TO
8/CD
p.m./NN
flextime/NN
arrangement/NN
,/,
whereby/WRB
employees/NNS
may/MD
select/VB
any/DT
eight-hour/JJ
period/NN
during/IN
those/DT
hours/NNS
to/TO
go/VB
to/TO
work/NN
./.
Of/IN
Bechtel/NNP
's/POS
17,500/CD
employees/NNS
,/,
about/IN
4,000/CD
work/NN
in/IN
San/NNP
Francisco/NNP
--/:
one-third/NN
of/IN
them/PRP
commuting/VBG
from/IN
stricken/JJ
East/NNP
Bay/NNP
./.
Pacific/NNP
Gas/NNP
&/CC
Electric/NNP
Co./NNP
is/VBZ
offering/VBG
its/PRP$
6,000/CD
San/NNP
Francisco/NNP
employees/NNS
a/DT
two-tier/JJ
flextime/NN
schedule/NN
--/:
either/CC
6/CD
a.m./NN
to/TO
2/CD
p.m./NN
or/CC
10/CD
a.m./NN
to/TO
6/CD
p.m/NN
./.
The/DT
flextime/NN
may/MD
cut/VB
by/IN
almost/RB
a/DT
third/JJ
the/DT
number/NN
of/IN
PG&E/NNP
employees/NNS
working/VBG
conventional/JJ
9-5/CD
hours/NNS
,/,
a/DT
spokesman/NN
says/VBZ
./.
Some/DT
of/IN
the/DT
utility/NN
's/POS
employees/NNS
may/MD
opt/VB
for/IN
a/DT
four-day/JJ
workweek/NN
,/,
10/CD
hours/NNS
a/DT
day/NN
,/,
to/TO
cut/VB
the/DT
commute/NN
by/IN
20/CD
%/NN
./.
At/IN
Pacific/NNP
Telesis/NNP
Group/NNP
,/,
flextime/NN
is/VBZ
left/VBN
up/IN
to/TO
individual/JJ
working/VBG
groups/NNS
,/,
because/IN
some/DT
of/IN
the/DT
telephone/NN
company/NN
's/POS
employees/NNS
must/MD
be/VB
on-site/JJ
during/IN
normal/JJ
business/NN
hours/NNS
,/,
a/DT
spokeswoman/NN
says/VBZ
./.
Some/DT
individuals/NNS
went/VBD
to/TO
some/DT
lengths/NNS
on/IN
their/PRP$
own/JJ
to/TO
avoid/VB
the/DT
anticipated/VBN
gridlock/NN
./.
One/CD
senior/JJ
vice/NN
president/NN
at/IN
Bechtel/NNP
said/VBD
he/PRP
got/VBD
up/IN
at/IN
3/CD
a.m./NN
to/TO
drive/VB
into/IN
San/NNP
Francisco/NNP
from/IN
the/DT
East/NNP
Bay/NNP
./.
But/CC
transportation/NN
officials/NNS
worry/VBP
that/IN
such/JJ
extraordinary/JJ
measures/NNS
and/CC
cooperation/NN
may/MD
not/RB
last/VB
./.
Although/IN
one/CD
transportation/NN
official/NN
said/VBD
drivers/NNS
who/WP
did/VBD
n't/RB
use/VB
car/NN
pools/NNS
were/VBD
committing/VBG
``/``
an/DT
anti-social/JJ
act/NN
,/,
''/''
about/IN
two-thirds/NNS
of/IN
the/DT
motorists/NNS
crossing/VBG
the/DT
Golden/NNP
Gate/NNP
were/VBD
alone/RB
,/,
compared/VBN
with/IN
the/DT
normal/JJ
70/CD
%/NN
rate/NN
./.
And/CC
some/DT
commuters/NNS
,/,
relieved/VBN
by/IN
the/DT
absence/NN
of/IN
gridlock/NN
,/,
were/VBD
planning/VBG
to/TO
return/VB
to/TO
their/PRP$
old/JJ
ways/NNS
./.
Garry/NNP
Kasparov/NNP
went/VBD
to/TO
combat/VB
Sunday/NNP
with/IN
the/DT
world/NN
's/POS
most/RBS
advanced/VBN
chess/NN
computer/NN
and/CC
kicked/VBD
it/PRP
around/IN
--/:
symbolically/RB
,/,
anyway/RB
--/:
like/IN
an/DT
old/JJ
tin/NN
can/NN
./.
Playing/VBG
black/JJ
in/IN
the/DT
first/JJ
game/NN
,/,
the/DT
human/JJ
champion/NN
maneuvered/VBD
Deep/NNP
Thought/NNP
,/,
known/VBN
for/IN
its/PRP$
attacking/VBG
prowess/NN
,/,
into/IN
a/DT
totally/RB
passive/JJ
position/NN
./.
Then/RB
he/PRP
unleashed/VBD
his/PRP$
own/JJ
,/,
unstoppable/JJ
,/,
attack/NN
./.
And/CC
in/IN
the/DT
second/JJ
game/NN
,/,
with/IN
Mr./NNP
Kasparov/NNP
advancing/VBG
ferociously/RB
as/IN
white/JJ
,/,
D.T./NNP
offered/VBD
feeble/JJ
resistance/NN
and/CC
lost/VBD
even/RB
faster/RBR
./.
Well/UH
,/,
mankind/NN
can/MD
rest/VB
easier/JJR
for/IN
now/RB
./.
Though/IN
almost/RB
everybody/NN
at/IN
the/DT
playing/VBG
site/NN
had/VBD
been/VBN
looking/VBG
for/IN
the/DT
26-year-old/JJ
Soviet/NNP
to/TO
beat/VB
the/DT
Pennsylvania-based/JJ
computer/NN
,/,
he/PRP
gave/VBD
the/DT
machine/NN
a/DT
far/RB
worse/JJR
drubbing/NN
than/IN
many/JJ
expected/VBD
./.
And/CC
when/WRB
Mr./NNP
Kasparov/NNP
strode/VBD
into/IN
the/DT
playing/VBG
hall/NN
,/,
he/PRP
called/VBD
the/DT
outcome/NN
./.
As/IN
if/IN
he/PRP
were/VBD
Iron/NNP
Mike/NNP
,/,
about/IN
to/TO
enter/VB
the/DT
ring/NN
with/IN
a/DT
98-pound/JJ
weakling/NN
,/,
he/PRP
declared/VBD
:/:
``/``
I/PRP
'll/MD
be/VB
able/JJ
to/TO
beat/VB
any/DT
computer/NN
for/IN
the/DT
next/JJ
five/CD
years/NNS
./.
''/''
His/PRP$
strategy/NN
against/IN
D.T./NNP
was/VBD
based/VBN
on/IN
a/DT
thorough/JJ
study/NN
of/IN
dozens/NNS
of/IN
its/PRP$
games/NNS
,/,
he/PRP
said/VBD
,/,
including/VBG
its/PRP$
notorious/JJ
whippings/NNS
of/IN
the/DT
grandmasters/NNS
Bent/NNP
Larsen/NNP
of/IN
Denmark/NNP
and/CC
Robert/NNP
Byrne/NNP
of/IN
the/DT
U.S/NNP
./.
Mr./NNP
Kasparov/NNP
was/VBD
underwhelmed/VBN
./.
``/``
The/DT
computer/NN
's/POS
mind/NN
is/VBZ
too/RB
straight/JJ
,/,
too/RB
primitive/JJ
,/,
''/''
lacking/VBG
the/DT
intuition/NN
and/CC
creativity/NN
needed/VBN
to/TO
reach/VB
the/DT
top/NN
,/,
he/PRP
said/VBD
./.
The/DT
champion/NN
apparently/RB
was/VBD
not/RB
worried/VBN
at/IN
all/DT
about/IN
D.T./NNP
's/POS
strong/JJ
points/NNS
./.
Its/PRP$
chief/NN
builder/NN
,/,
Taiwan-born/JJ
Feng-hsiung/NNP
Hsu/NNP
,/,
nicknamed/VBN
his/PRP$
brainchild/NN
``/``
the/DT
Weasel/NNP
''/''
for/IN
its/PRP$
tactical/JJ
flair/NN
at/IN
wriggling/VBG
out/IN
of/IN
horrible/JJ
positions/NNS
./.
D.T./NNP
also/RB
has/VBZ
a/DT
prodigious/JJ
and/CC
flawless/JJ
memory/NN
,/,
is/VBZ
utterly/RB
fearless/JJ
,/,
and/CC
could/MD
n't/RB
be/VB
distracted/VBN
by/IN
the/DT
sexy/JJ
nude/JJ
sculptures/NNS
spread/VBN
around/IN
the/DT
playing/NN
hall/NN
,/,
in/IN
the/DT
New/NNP
York/NNP
Academy/NNP
of/IN
Art/NNP
./.
In/IN
fact/NN
,/,
D.T./NNP
never/RB
left/VBD
home/NN
,/,
Carnegie/NNP
Mellon/NNP
University/NNP
in/IN
Pittsburgh/NNP
,/,
but/CC
communicated/VBN
with/IN
its/PRP$
human/JJ
handlers/NNS
by/IN
telephone/NN
link/NN
./.
They/PRP
conceded/VBD
that/IN
the/DT
odds/NNS
favored/VBD
Mr./NNP
Kasparov/NNP
,/,
but/CC
they/PRP
put/VBP
their/PRP$
hope/NN
in/IN
D.T./NNP
's/POS
recently/RB

enhanced/VBN
capacity/NN
for/IN
examining/VBG
positions/NNS
--/:
up/IN
to/TO
a/DT
million/CD
per/IN
second/JJ
,/,
from/IN
720,000/CD
./.
But/CC
the/DT
handlers/NNS
mistakenly/RB
stuck/VBD
with/IN
silicon/NN
chips/NNS
;/:
they/PRP
needed/VBD
kryptonite/NN
./.
This/DT
became/VBD
apparent/JJ
as/IN
game/NN
one/CD
,/,
a/DT
Sicilian/NNP
Defense/NNP
by/IN
Mr./NNP
Kasparov/NNP
,/,
proceeded/VBD
./.
No/DT
human/NN
can/MD
examine/VB
millions/NNS
of/IN
moves/NNS
,/,
but/CC
Mr./NNP
Kasparov/NNP
,/,
using/VBG
his/PRP$
ineffably/RB
powerful/JJ
brain/NN
,/,
consistently/RB
found/VBD
very/RB
good/JJ
ones/NNS
./.
After/IN
eight/CD
moves/NNS
by/IN
each/DT
side/NN
,/,
the/DT
board/NN
was/VBD
the/DT
same/JJ
as/IN
in/IN
a/DT
game/NN
in/IN
which/WDT
Nigel/NNP
Short/NNP
of/IN
Great/NNP
Britain/NNP
fought/VBD
the/DT
champion/NN
to/TO
a/DT
draw/NN
in/IN
1980/CD
./.
But/CC
the/DT
computer/NN
did/VBD
n't/RB
play/VB
Mr./NNP
Short/NNP
's/POS
ninth/JJ
move/NN
,/,
a/DT
key/JJ
pawn/NN
thrust/NN
,/,
and/CC
its/PRP$
position/NN
deteriorated/VBD
rapidly/RB
./.
Instead/RB
of/IN
castling/VBG
,/,
a/DT
standard/JJ
measure/NN
to/TO
safeguard/VB
the/DT
king/NN
,/,
D.T./NNP
made/VBD
a/DT
second-rate/JJ
rook/NN
maneuver/NN
at/IN
move/NN
13/CD
;/:
then/RB
it/PRP
put/VBD
a/DT
knight/NN
offside/NN
on/IN
move/NN
16/CD
./.
``/``
Only/RB
two/CD
classes/NNS
of/IN
minds/NNS
would/MD
think/VB
of/IN
this/DT
--/:
very/RB
weak/JJ
human/JJ
players/NNS
,/,
and/CC
computers/NNS
,/,
''/''
said/VBD
Edmar/NNP
Mednis/NNP
,/,
the/DT
expert/JJ
commentator/NN
for/IN
the/DT
match/NN
,/,
which/WDT
was/VBD
attended/VBN
by/IN
hundreds/NNS
of/IN
chess/NN
fans/NNS
./.
By/IN
move/NN
21/CD
,/,
D.T./NNP
had/VBD
fallen/VBN
into/IN
a/DT
deep/JJ
positional/JJ
trap/NN
./.
It/PRP
allowed/VBD
Mr./NNP
Kasparov/NNP
to/TO
exchange/VB
his/PRP$
dark-squared/JJ
bishop/NN
for/IN
one/CD
of/IN
D.T./NNP
's/POS
knights/NNS
./.
Bishops/NNS
usually/RB
are/VBP
worth/JJ
slightly/RB
more/JJR
than/IN
knights/NNS
,/,
but/CC
in/IN
this/DT
case/NN
Mr./NNP
Kasparov/NNP
was/VBD
left/VBN
with/IN
a/DT
very/RB
dangerous/JJ
knight/NN
and/CC
D.T./NNP
's/POS
surviving/VBG
bishop/NN
was/VBD
reduced/VBN
to/TO
passivity/NN
./.
Indeed/RB
,/,
it/PRP
looked/VBD
more/JJR
like/IN
a/DT
pawn/NN
,/,
a/DT
``/``
tall/JJ
pawn/NN
,/,
''/''
as/IN
spectators/NNS
snidely/RB
put/VBP
it/PRP
./.
Consistently/RB
,/,
D.T./NNP
was/VBD
over-optimistic/JJ
about/IN
its/PRP$
chances/NNS
,/,
which/WDT
it/PRP
continually/RB
sized/VBD
up/IN
,/,
in/IN
numerical/JJ
form/NN
./.
When/WRB
most/JJS
spectators/NNS
thought/VBD
its/PRP$
position/NN
hopeless/JJ
,/,
the/DT
computer/NN
thought/VBD
it/PRP
was/VBD
only/RB
,/,
in/IN
effect/NN
,/,
one-half/NN
of/IN
a/DT
pawn/NN
down/IN
./.
Such/JJ
evaluations/NNS
met/VBD
with/IN
derision/NN
,/,
and/CC
kept/VBD
the/DT
machine/NN
from/IN
resigning/VBG
as/RB
soon/RB
as/IN
humans/NNS
would/MD
have/VB
--/:
prompting/VBG
more/JJR
derision/NN
./.
While/IN
D.T./NNP
shuffled/VBD
its/PRP$
king/NN
back/RB
and/CC
forth/RB
in/IN
a/DT
defensive/JJ
crouch/NN
,/,
Mr./NNP
Kasparov/NNP
maneuvered/VBD
the/DT
knight/NN
to/TO
a/DT
dominant/JJ
outpost/NN
./.
He/PRP
also/RB
launched/VBD
a/DT
kingside/NN
storm/NN
,/,
sacrificing/VBG
a/DT
pawn/NN
to/TO
denude/VB
D.T./NNP
's/POS
king/NN
./.
No/DT
amount/NN
of/IN
weasling/VBG
could/MD
have/VB
saved/VBN
this/DT
game/NN
for/IN
D.T/NNP
./.
A/DT
piece/NN
down/IN
,/,
the/DT
computer/NN
resigned/VBD
./.
Now/RB
,/,
with/IN
the/DT
crowd/NN
in/IN
the/DT
analysis/NN
room/NN
smelling/VBG
figurative/JJ
blood/NN
,/,
the/DT
only/JJ
question/NN
seemed/VBD
to/TO
be/VB
how/WRB
fast/JJ
Mr./NNP
Kasparov/NNP
could/MD
win/VB
game/NN
two/CD
./.
With/IN
the/DT
advantage/NN
of/IN
playing/VBG
white/JJ
which/WDT
moves/VBZ
first/JJ
Mr./NNP
Kasparov/NNP
followed/VBD
up/IN
cleverly/RB
against/IN
the/DT
computer/NN
's/POS
defense/NN
,/,
a/DT
Queen/NNP
's/POS
Gambit/NNP
Accepted/NNP
./.
As/RB
early/RB
as/IN
move/NN
six/CD
,/,
Mr./NNP
Kasparov/NNP
deviated/VBD
from/IN
a/DT
well-known/JJ
sequence/NN
of/IN
moves/NNS
,/,
developing/VBG
a/DT
knight/NN
instead/RB
of/IN
making/VBG
a/DT
standard/JJ
bishop/NN
attack/NN
against/IN
the/DT
computer/NN
's/POS
advanced/VBN
knight/NN
./.
This/DT
left/VBD
the/DT
computer/NN
with/IN
a/DT
broader/JJR
range/NN
of/IN
plausible/JJ
replies/NNS
--/:
and/CC
it/PRP
immediately/RB
blundered/VBD
by/IN
moving/VBG
a/DT
queenside/NN
pawn/NN
,/,
to/TO
the/DT
neglect/NN
of/IN
kingside/NN
development/NN
./.
``/``
In/IN
a/DT
new/JJ
position/NN
just/RB
after/IN
the/DT
opening/NN
,/,
a/DT
computer/NN
will/MD
have/VB
serious/JJ
problems/NNS
,/,
''/''
Mr./NNP
Kasparov/NNP
said/VBD
later/RB
./.
In/IN
such/JJ
positions/NNS
,/,
he/PRP
explained/VBD
,/,
``/``
you/PRP
have/VBP
to/TO
create/VB
something/NN
new/JJ
,/,
and/CC
the/DT
computer/NN
is/VBZ
n't/RB
able/JJ
to/TO
do/VB
that/DT
right/RB
now/RB
./.
''/''
After/IN
only/RB
11/CD
moves/NNS
for/IN
each/DT
side/NN
,/,
the/DT
computer/NN
's/POS
position/NN
was/VBD
shaky/JJ
./.
Greedily/RB
,/,
it/PRP
grabbed/VBD
a/DT
pawn/NN
,/,
at/IN
the/DT
cost/NN
of/IN
facing/VBG
a/DT
brutal/JJ
attack/NN
./.
And/CC
when/WRB
a/DT
defensive/JJ
move/NN
was/VBD
called/VBN
for/IN
,/,
D.T./NNP
passed/VBD
up/IN
an/DT
obvious/JJ
pawn/NN
move/NN
and/CC
instead/RB
exposed/VBN
its/PRP$
queen/NN
to/TO
immediate/JJ
tactical/JJ
threats/NNS
./.
Mr./NNP
Kasparov/NNP
remarked/VBD
later/RB
that/IN
``/``
even/RB
a/DT
weak/JJ
club/NN
player/NN
''/''
would/MD
have/VB
avoided/VBN
the/DT
queen/NN
move/NN
./.
Now/RB
,/,
after/IN
only/RB
a/DT
dozen/NN
moves/NNS
,/,
spectators/NNS
were/VBD
looking/VBG
for/IN
a/DT
mating/NN
combination/NN
./.
On/IN
a/DT
demonstration/NN
board/NN
,/,
emcee/NN
Shelby/NNP
Lyman/NNP
showed/VBD
a/DT
quick/JJ
kill/NN
initiated/VBN
by/IN
a/DT
knight/NN
sacrifice/NN
;/:
no/DT
spectator/NN
refuted/VBD
this/DT
line/NN
of/IN
play/NN
./.
Mr./NNP
Kasparov/NNP
's/POS
continuation/NN
was/VBD
slower/JJR
but/CC
,/,
in/IN
the/DT
end/NN
,/,
just/RB
as/IN
deadly/JJ
./.
He/PRP
won/VBD
D.T./NNP
's/POS
queen/NN
for/IN
two/CD
minor/JJ
pieces/NNS
and/CC
two/CD
pawns/NNS
--/:
not/RB
enough/RB
compensation/NN
,/,
in/IN
this/DT
position/NN
,/,
to/TO
give/VB
the/DT
computer/NN
much/JJ
hope/NN
./.
In/IN
a/DT
hopeless/JJ
position/NN
,/,
the/DT
computer/NN
resigned/VBD
rather/RB
than/IN
make/VB
its/PRP$
37th/JJ
move/NN
./.
And/CC
Mr./NNP
Kasparov/NNP
,/,
to/TO
cheers/NNS
and/CC
applause/NN
,/,
marched/VBD
back/RB
into/IN
the/DT
analysis/NN
room/NN
./.
``/``
In/IN
both/DT
games/NNS
I/PRP
got/VBD
exactly/RB
what/WP
I/PRP
wanted/VBD
,/,
''/''
he/PRP
said/VBD
./.
What/WP
he/PRP
had/VBD
demonstrated/VBN
,/,
he/PRP
added/VBD
,/,
is/VBZ
that/IN
there/EX
's/VBZ
more/JJR
to/TO
chess/NN
than/IN
sheer/JJ
calculation/NN
./.
Undeterred/JJ
,/,
D.T./NNP
's/POS
handlers/NNS
vowed/VBD
to/TO
press/VB
on/IN
./.
Indeed/RB
,/,
three/CD
of/IN
them/PRP
will/MD
be/VB
building/VBG
a/DT
successor/NN
machine/NN
for/IN
International/NNP
Business/NNP
Machines/NNPS
Corp/NNP
./.
Promises/VBZ
Feng-hsiung/NNP
Hsu/NNP
:/:
``/``
In/IN
three/CD
years/NNS
we/PRP
'll/MD
mount/VB
a/DT
better/JJR
challenge/NN
./.
''/''
Mr./NNP
Tannenbaum/NNP
is/VBZ
a/DT
reporter/NN
in/IN
the/DT
Journal/NNP
's/POS
New/NNP
York/NNP
bureau/NN
./.
Reaching/VBG
for/IN
that/DT
extra/JJ
bit/NN
of/IN
yield/NN
can/MD
be/VB
a/DT
big/JJ
mistake/NN
--/:
especially/RB
if/IN
you/PRP
do/VBP
n't/RB
understand/VB
what/WP
you/PRP
're/VBP
investing/VBG
in/IN
./.
Just/RB
ask/VB
Richard/NNP
Blumenfeld/NNP
,/,
a/DT
New/NNP
Jersey/NNP
dentist/NN
who/WP
considers/VBZ
himself/PRP
``/``
a/DT
reasonably/RB
sophisticated/JJ
investor/NN
./.
''/''
In/IN
May/NNP
1986/CD
,/,
Dr./NNP
Blumenfeld/NNP
gave/VBD
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
about/IN
$/$
40,000/CD
for/IN
a/DT
federally/RB
insured/VBN
certificate/NN
of/IN
deposit/NN
offering/VBG
an/DT
effective/JJ
yield/NN
of/IN
more/RBR
than/IN
9/CD
%/NN
./.
``/``
It/PRP
was/VBD
a/DT
time/NN
when/WRB
interest/NN
rates/NNS
came/VBD
down/IN
very/RB
rapidly/RB
,/,
''/''
Dr./NNP
Blumenfeld/NNP
recalls/VBZ
./.
Yields/NNS
on/IN
five-year/JJ
CDs/NNS
at/IN
major/JJ
banks/NNS
were/VBD
averaging/VBG
about/IN
7.45/CD
%/NN
,/,
and/CC
10-year/JJ
Treasury/NN
notes/NNS
were/VBD
paying/VBG
less/RBR
than/IN
8/CD
%/NN
./.
The/DT
CD/NNP
seemed/VBD
like/IN
a/DT
great/JJ
deal/NN
./.
But/CC
nearly/RB
3/CD
1\/2/CD
years/NNS
later/RB
,/,
Merrill/NNP
says/VBZ
the/DT
investment/NN
is/VBZ
worth/JJ
about/IN
$/$
43,000/CD
--/:
an/DT
amount/NN
that/WDT
represents/VBZ
an/DT
annual/JJ
return/NN
of/IN
just/RB
over/IN
2/CD
%/NN
on/IN
Dr./NNP
Blumenfeld/NNP
's/POS
$/$
40,000/CD
./.
The/DT
problem/NN
is/VBZ
that/IN
the/DT
CD/NNP
he/PRP
bought/VBD
for/IN
a/DT
retirement/NN
plan/NN
was/VBD
n't/RB
a/DT
plain/JJ
vanilla/NN
CD/NNP
./.
Instead/RB
,/,
his/PRP$
Merrill/NNP
broker/NN
put/VBD
him/PRP
in/IN
a/DT
zero-coupon/JJ
CD/NNP
,/,
which/WDT
is/VBZ
sold/VBN
at/IN
a/DT
deep/JJ
discount/NN
to/TO
its/PRP$
face/NN
value/NN
./.
The/DT
difference/NN
between/IN
the/DT
price/NN
and/CC
the/DT
face/NN
value/NN
payable/JJ
at/IN
maturity/NN
is/VBZ
the/DT
investor/NN
's/POS
return/NN
./.
More/RBR
important/JJ
,/,
the/DT
CD/NNP
was/VBD
purchased/VBN
on/IN
the/DT
secondary/JJ
,/,
or/CC
resale/NN
,/,
market/NN
./.
Because/IN
the/DT
CD/NNP
had/VBD
an/DT
effective/JJ
yield/NN
of/IN
13.4/CD
%/NN
when/WRB
it/PRP
was/VBD
issued/VBN
in/IN
1984/CD
,/,
and/CC
interest/NN
rates/NNS
in/IN
general/JJ
had/VBD
declined/VBN
sharply/RB
since/IN
then/RB
,/,
part/NN
of/IN
the/DT
price/NN
Dr./NNP
Blumenfeld/NNP
paid/VBD
was/VBD
a/DT
premium/NN
--/:
an/DT
additional/JJ
amount/NN
on/IN
top/NN
of/IN
the/DT
CD/NNP
's/POS
base/NN
value/NN
plus/CC
accrued/VBN
interest/NN
that/WDT
represented/VBD
the/DT
CD/NNP
's/POS
increased/VBN
market/NN
value/NN
./.
Now/RB
the/DT
thrift/NN
that/WDT
issued/VBD
the/DT
CD/NNP
is/VBZ
insolvent/JJ
,/,
and/CC
Dr./NNP
Blumenfeld/NNP
has/VBZ
learned/VBN
to/TO
his/PRP$
surprise/NN
that/IN
the/DT
premium/NN
is/VBZ
n't/RB
insured/VBN
under/IN
federal/JJ
deposit/NN
insurance/NN
./.
The/DT
tip-off/NN
came/VBD
when/WRB
he/PRP
opened/VBD
a/DT
recent/JJ
Merrill/NNP
Lynch/NNP
statement/NN
and/CC
found/VBD
that/IN
the/DT
CD/NNP
's/POS
``/``
estimated/VBN
current/JJ
market/NN
value/NN
''/''
had/VBD
plummeted/VBN
by/IN
$/$
9,000/CD
in/IN
a/DT
month/NN
./.
Several/JJ
phone/NN
calls/NNS
and/CC
a/DT
visit/NN
to/TO
his/PRP$
broker/NN
's/POS
office/NN
later/RB
,/,
the/DT
dentist/NN
found/VBD
out/IN
that/IN
the/DT
$/$
9,000/CD
drop/NN
represented/VBD
the/DT
current/JJ
value/NN
of/IN
the/DT
premium/NN
he/PRP
paid/VBD
when/WRB
he/PRP
bought/VBD
the/DT
CD/NNP
,/,
and/CC
that/IN
the/DT
amount/NN
was/VBD
n't/RB
insured/VBD
./.
``/``
This/DT
is/VBZ
one/CD
thing/NN
I/PRP
was/VBD
never/RB
aware/JJ
of/IN
,/,
''/''
he/PRP
says/VBZ
./.
He/PRP
assumed/VBD
that/IN
principal/NN
and/CC
interest/NN
were/VBD
``/``
fully/RB
insured/VBN
up/IN
to/TO
$/$
100,000/CD
,/,
''/''
he/PRP
adds/VBZ
./.
Dr./NNP
Blumenfeld/NNP
is/VBZ
n't/RB
unique/JJ
./.
Especially/RB
at/IN
times/NNS
like/IN
these/DT
,/,
when/WRB
declining/VBG
rates/NNS
make/VBP
it/PRP
hard/RB
for/IN
investors/NNS
to/TO
get/VB
yields/NNS
they/PRP
have/VBP
come/VBN
to/TO
expect/VB
,/,
too/RB
many/JJ
people/NNS
chase/VB
the/DT
promise/NN
of/IN
above-market/JJ
returns/NNS
without/IN
fully/RB
appreciating/VBG
the/DT
risk/NN
./.
``/``
Yield/NN
greed/NN
often/RB
gets/VBZ
in/IN
the/DT
way/NN
of/IN
understanding/VBG
things/NNS
,/,
''/''
says/VBZ
John/NNP
Markese/NNP
,/,
research/NN
director/NN
of/IN
the/DT
American/NNP
Association/NNP
of/IN
Individual/NNP
Investors/NNPS
,/,
a/DT
Chicago-based/JJ
educational/JJ
group/NN
./.
``/``
The/DT
biggest/JJS
problem/NN
we/PRP
have/VBP
is/VBZ
that/IN
investors/NNS
realize/VBP
,/,
after/IN
the/DT
fact/NN
,/,
that/IN
they/PRP
did/VBD
n't/RB
understand/VB
what/WP
they/PRP
were/VBD
investing/VBG
in/IN
./.
''/''
Dr./NNP
Blumenfeld/NNP
concedes/VBZ
he/PRP
did/VBD
n't/RB
fully/RB
understand/VB
what/WP
he/PRP
was/VBD
buying/VBG
./.
He/PRP
says/VBZ
that/IN
he/PRP
knew/VBD
he/PRP
was/VBD
getting/VBG
a/DT
zero-coupon/JJ
CD/NNP
and/CC
that/IN
he/PRP
had/VBD
previously/RB
invested/VBN
in/IN
TIGRs/NNP
Treasury/NNP
Income/NNP
Growth/NNP
Receipts/NNPS
a/DT
type/NN
of/IN
zero-coupon/JJ
Treasury/NNP
security/NN
sold/VBN
by/IN
Merrill/NNP
Lynch/NNP
./.
But/CC
he/PRP
says/VBZ
he/PRP
did/VBD
n't/RB
understand/VB
he/PRP
was/VBD
buying/VBG
the/DT
CD/NNP
on/IN
the/DT
secondary/JJ
market/NN
,/,
and/CC
he/PRP
contends/VBZ
his/PRP$
broker/NN
never/RB
fully/RB
explained/VBD
the/DT
risks/NNS
./.
The/DT
broker/NN
,/,
Thomas/NNP
Beairsto/NNP
of/IN
Merrill/NNP
Lynch/NNP
's/POS
Morristown/NNP
,/,
N.J./NNP
,/,
office/NN
,/,
refuses/VBZ
to/TO
discuss/VB
the/DT
matter/NN
with/IN
a/DT
reporter/NN
,/,
referring/VBG
inquiries/NNS
to/TO
Merrill/NNP
Lynch/NNP
officials/NNS
in/IN
New/NNP
York/NNP
./.
Those/DT
officials/NNS
say/VBP
there/EX
was/VBD
full/JJ
disclosure/NN
of/IN
the/DT
risks/NNS
in/IN
a/DT
``/``
fact/NN
sheet/NN
''/''
sent/VBN
to/TO
all/DT
CD/NNP
investors/NNS
with/IN
their/PRP$
confirmation/NN
of/IN
sale/NN
./.
The/DT
fact/NN
sheet/NN
,/,
dated/VBN
April/NNP
1986/CD
,/,
says/VBZ
on/IN
page/NN
three/CD
:/:
``/``
If/IN
the/DT
price/NN
paid/VBN
for/IN
a/DT
CD/NNP
purchased/VBN
in/IN
the/DT
secondary/JJ
market/NN
.../:
is/VBZ
higher/JJR
than/IN
the/DT
accreted/VBN
value/NN
in/IN
the/DT
case/NN
of/IN
zero-coupon/JJ
CDs/NNPS
,/,
the/DT
difference/NN
.../:
is/VBZ
not/RB
insured/VBN
.../:
./.
Computations/NNS
involving/VBG
zero-coupon/JJ
CDs/NNPS
are/VBP
more/RBR
complicated/VBN
and/CC
you/PRP
should/MD
discuss/VB
any/DT
questions/NNS
you/PRP
may/MD
have/VB
with/IN
your/PRP$
financial/JJ
consultant/NN
./.
''/''
Dr./NNP
Blumenfeld/NNP
says/VBZ
he/PRP
does/VBZ
n't/RB
remember/VB
the/DT
paragraph/NN
about/IN
premiums/NNS
in/IN
the/DT
fact/NN
sheet/NN
he/PRP
received/VBD
and/CC
did/VBD
n't/RB
realize/VB
part/NN
of/IN
what/WP
he/PRP
paid/VBD
was/VBD
a/DT
premium/NN
./.
``/``
I/PRP
assumed/VBD
I/PRP
was/VBD
buying/VBG
a/DT
CD/NNP
as/IN
a/DT
CD/NNP
,/,
''/''
he/PRP
says/VBZ
./.
Nevertheless/RB
,/,
Merrill/NNP
Lynch/NNP
has/VBZ
agreed/VBN
that/IN
if/IN
the/DT
thrift/NN
that/WDT
issued/VBD
Dr./NNP
Blumenfeld/NNP
's/POS
CD/NNP
,/,
Peoples/NNPS
Heritage/NNP
Federal/NNP
Savings/NNP
&/CC
Loan/NNP
Association/NNP
in/IN
Salina/NNP
,/,
Kan./NNP
,/,
is/VBZ
liquidated/VBN
and/CC
the/DT
CD/NNP
terminated/VBN
,/,
the/DT
brokerage/NN
firm/NN
would/MD
cover/VB
the/DT
premium/NN
Dr./NNP
Blumenfeld/NNP
paid/VBD
./.
Federal/NNP
deposit/NN
insurance/NN
would/MD
pay/VB
principal/NN
and/CC
interest/NN
accrued/VBN
to/TO
the/DT
date/NN
of/IN
liquidation/NN
,/,
to/TO
a/DT
maximum/NN
of/IN
$/$
100,000/CD
./.
``/``
It/PRP
's/VBZ
not/RB
a/DT
blanket/NN
commitment/NN
,/,
it/PRP
's/VBZ
a/DT
case-by-case/JJ
situation/NN
,/,
''/''
says/VBZ
Albert/NNP
Disposti/NNP
,/,
a/DT
managing/VBG
director/NN
of/IN
Merrill/NNP
Lynch/NNP
Money/NNP
Markets/NNPS
Inc/NNP
./.
``/``
There/EX
's/VBZ
a/DT
question/NN
whether/IN
brokers/NNS
at/IN
the/DT
time/NN
were/VBD
fully/RB
aware/JJ
''/''
of/IN
the/DT
risks/NNS
./.
``/``
We/PRP
were/VBD
n't/RB
sure/JJ
that/IN
full/JJ
disclosure/NN
,/,
as/IN
we/PRP
wanted/VBD
it/PRP
,/,
was/VBD
being/VBG
made/VBN
./.
''/''
Merrill/NNP
Lynch/NNP
says/VBZ
it/PRP
's/VBZ
impossible/JJ
to/TO
estimate/VB
how/WRB
many/JJ
investors/NNS
are/VBP
in/IN
Dr./NNP
Blumenfeld/NNP
's/POS
situation/NN
,/,
although/IN
it/PRP
says/VBZ
the/DT
firm/NN
has/VBZ
received/VBN
only/RB
one/CD
other/JJ
complaint/NN
about/IN
premiums/NNS
on/IN
the/DT
secondary/JJ
market/NN
in/IN
three/CD
years/NNS
./.
Merrill/NNP
Lynch/NNP
now/RB
provides/VBZ
credit/NN
rating/NN
information/NN
about/IN
the/DT
institutions/NNS
whose/WP$
CDs/NNS
it/PRP
sells/VBZ
,/,
which/WDT
it/PRP
did/VBD
n't/RB
provide/VB
in/IN
1986/CD
./.
Zero-coupon/JJ
CDs/NNPS
are/VBP
only/RB
a/DT
small/JJ
portion/NN
of/IN
the/DT
$/$
1/CD
trillion-plus/NN
in/IN
CDs/NNPS
outstanding/JJ
,/,
and/CC
those/DT
purchased/VBN
on/IN
the/DT
secondary/JJ
market/NN
are/VBP
an/DT
even/RB
smaller/JJR
part/NN
of/IN
the/DT
total/NN
./.
Merrill/NNP
Lynch/NNP
estimates/VBZ
that/IN
fewer/JJR
than/IN
10/CD
financial/JJ
institutions/NNS
currently/RB
issue/VBP
zero-coupon/JJ
CDs/NNPS
./.
Still/RB
,/,
there/EX
are/VBP
several/JJ
billion/CD
dollars/NNS
of/IN
zero-coupon/JJ
CDs/NNPS
with/IN
various/JJ
maturities/NNS
outstanding/JJ
./.
Because/IN
of/IN
the/DT
tax/NN
consequences/NNS
of/IN
zero-coupon/JJ
investments/NNS
--/:
income/NN
tax/NN
is/VBZ
payable/JJ
in/IN
the/DT
year/NN
interest/NN
is/VBZ
accrued/VBN
,/,
although/IN
interest/NN
is/VBZ
n't/RB
actually/RB
paid/VBN
until/IN
maturity/NN
--/:
zero-coupon/JJ
CDs/NNPS
are/VBP
usually/RB
sold/VBN
for/IN
tax-advantaged/JJ
accounts/NNS
to/TO
finance/VB
things/NNS
like/IN
retirement/NN
and/CC
children/NNS
's/POS
education/NN
./.
Most/JJS
zero-coupon/JJ
CDs/NNPS
are/VBP
in/IN
maturities/NNS
of/IN
six/CD
to/TO
nine/CD
years/NNS
,/,
and/CC
they/PRP
usually/RB
double/VBP
in/IN
value/NN
by/IN
maturity/NN
./.
But/CC
investors/NNS
who/WP
bought/VBD
zero-coupon/JJ
CDs/NNPS
in/IN
the/DT
secondary/JJ
market/NN
are/VBP
n't/RB
the/DT
only/JJ
ones/NNS
who/WP
may/MD
be/VB
surprised/VBN
to/TO
learn/VB
the/DT
full/JJ
amount/NN
of/IN
their/PRP$
investments/NNS
is/VBZ
n't/RB
insured/VBN
./.
People/NNS
who/WP
paid/VBD
a/DT
premium/NN
for/IN
standard/JJ
CDs/NNPS
purchased/VBD
on/IN
the/DT
secondary/JJ
market/NN
could/MD
also/RB
find/VB
that/IN
those/DT
premiums/NNS
are/VBP
n't/RB
insured/VBN
if/IN
the/DT
institutions/NNS
that/WDT
issued/VBD
the/DT
CDs/NNPS
failed/VBD
./.
However/RB
,/,
those/DT
premiums/NNS
are/VBP
usually/RB
far/RB
smaller/JJR
than/IN
on/IN
zero-coupon/JJ
CDs/NNPS
,/,
and/CC
the/DT
simpler/JJR
pricing/NN
structure/NN
of/IN
a/DT
standard/JJ
CD/NNP
makes/VBZ
it/PRP
more/RBR
apparent/JJ
when/WRB
a/DT
premium/NN
is/VBZ
paid/VBN
./.
Whatever/WDT
the/DT
case/NN
,/,
a/DT
Merrill/NNP
Lynch/NNP
spokesman/NN
emphasizes/VBZ
,/,
investors/NNS
should/MD
n't/RB
have/VB
to/TO
worry/VB
about/IN
the/DT
uninsured/JJ
premium/NN
issue/NN
,/,
unless/IN
the/DT
bank/NN
or/CC
thrift/NN
that/WDT
issued/VBD
the/DT
CD/NNP
is/VBZ
closed/VBN
and/CC
its/PRP$
deposits/NNS
paid/VBN
off/IN
before/IN
maturity/NN
or/CC
transferred/VBN
to/TO
another/DT
institution/NN
at/IN
a/DT
lower/JJR
rate/NN
./.
Dr./NNP
Blumenfeld/NNP
says/VBZ
he/PRP
's/VBZ
satisfied/VBN
that/IN
his/PRP$
problem/NN
has/VBZ
been/VBN
resolved/VBN
./.
And/CC
he/PRP
says/VBZ
he/PRP
's/VBZ
learned/VBN
a/DT
lesson/NN
:/:
``/``
You/PRP
always/RB
have/VBP
to/TO
watch/VB
out/IN
for/IN
yourself/PRP
./.
No/DT
one/NN
else/RB
will/MD
watch/VB
out/IN
for/IN
you/PRP
./.
''/''
Americans/NNPS
are/VBP
drinking/VBG
less/JJR
,/,
but/CC
young/JJ
professionals/NNS
from/IN
Australia/NNP
to/TO
West/NNP
Germany/NNP
are/VBP
rushing/VBG
to/TO
buy/VB
premium-brand/JJ
American/JJ
vodka/NN
,/,
brandy/NN
and/CC
other/JJ
spirits/NNS
./.
In/IN
particular/JJ
,/,
many/JJ
are/VBP
snubbing/VBG
the/DT
scotch/NN
preferred/VBN
by/IN
their/PRP$
parents/NNS
and/CC
opting/VBG
for/IN
bourbon/NN
,/,
the/DT
sweet/JJ
firewater/NN
from/IN
the/DT
Kentucky/NNP
countryside/NN
./.
With/IN
U.S./NNP
liquor/NN
consumption/NN
declining/VBG
steadily/RB
,/,
many/JJ
American/JJ
producers/NNS
are/VBP
stepping/VBG
up/IN
their/PRP$
marketing/NN
efforts/NNS
abroad/RB
./.
And/CC
those/DT
efforts/NNS
are/VBP
paying/VBG
off/IN
:/:
Spirits/NNS
exports/NNS
jumped/VBD
more/JJR
than/IN
2/CD
1\/2/CD
times/NNS
to/TO
$/$
157.2/CD
million/CD
in/IN
1988/CD
from/IN
$/$
59.8/CD
million/CD
in/IN
1983/CD
,/,
according/VBG
to/TO
the/DT
Distilled/NNP
Spirits/NNPS
Council/NNP
of/IN
the/DT
U.S./NNP
,/,
a/DT
trade/NN
group/NN
./.
``/``
Spirits/NNS
companies/NNS
now/RB
view/VBP
themselves/PRP
as/IN
global/JJ
marketers/NNS
,/,
''/''
says/VBZ
Michael/NNP
Bellas/NNP
,/,
president/NN
of/IN
Beverage/NNP
Marketing/NNP
Corp./NNP
,/,
a/DT
research/NN
and/CC
consulting/VBG
firm/NN
./.
``/``
If/IN
you/PRP
want/VBP
to/TO
be/VB
a/DT
player/NN
,/,
you/PRP
have/VBP
to/TO
be/VB
in/IN
America/NNP
,/,
Europe/NNP
and/CC
the/DT
Far/NNP
East/NNP
./.
You/PRP
must/MD
have/VB
world-class/JJ
brands/NNS
,/,
a/DT
long-term/JJ
perspective/NN
and/CC
deep/JJ
pockets/NNS
./.
''/''
The/DT
internationalization/NN
of/IN
the/DT
industry/NN
has/VBZ
been/VBN
hastened/VBN
by/IN
foreign/JJ
companies/NNS
'/POS
acquisitions/NNS
of/IN
many/JJ
U.S./NNP
producers/NNS
./.
In/IN
recent/JJ
years/NNS
,/,
for/IN
example/NN
,/,
Grand/NNP
Metropolitan/NNP
PLC/NNP
of/IN
Britain/NNP
acquired/VBD
Heublein/NNP
Inc./NNP
,/,
while/IN
another/DT
British/JJ
company/NN
,/,
Guinness/NNP
PLC/NNP
,/,
took/VBD
over/IN
United/NNP
Distillers/NNPS
Group/NNP
and/CC
Schenley/NNP
Industries/NNPS
Inc/NNP
./.
But/CC
the/DT
shift/NN
has/VBZ
also/RB
been/VBN
fueled/VBN
by/IN
necessity/NN
./.
While/IN
premium-brand/JJ
spirits/NNS
like/IN
Smirnoff/NNP
vodka/NN
and/CC
Jack/NNP
Daniel/NNP
's/POS
whiskey/NN
are/VBP
riding/VBG
high/RB
in/IN
the/DT
U.S./NNP
,/,
domestic/JJ
spirits/NNS
consumption/NN
fell/VBD
15/CD
%/NN
to/TO
141.1/CD
million/CD
cases/NNS
in/IN
1988/CD
from/IN
166/CD
million/CD
cases/NNS
in/IN
1979/CD
./.
In/IN
recent/JJ
years/NNS
,/,
growth/NN
has/VBZ
come/VBN
in/IN
the/DT
foreign/JJ
markets/NNS
./.
U.S./NNP
brandy/NN
exports/NNS
more/JJR
than/IN
doubled/VBD
last/JJ
year/NN
to/TO
360,000/CD
proof/NN
gallons/NNS
,/,
a/DT
standard/JJ
industry/NN
measure/NN
,/,
according/VBG
to/TO
Jobson/NNP
Beverage/NNP
Alcohol/NNP
Group/NNP
,/,
an/DT
industry/NN
association/NN
./.
Exports/NNS
of/IN
rum/NN
surged/VBD
54/CD
%/NN
to/TO
814,000/CD
proof/NN
gallons/NNS
./.
Mexico/NNP
is/VBZ
the/DT
biggest/JJS
importer/NN
of/IN
both/DT
rum/NN
and/CC
brandy/NN
from/IN
the/DT
U.S/NNP
./.
Japan/NNP
,/,
the/DT
world/NN
's/POS
third-largest/JJ
liquor/NN
market/NN
after/IN
the/DT
U.S./NNP
and/CC
Britain/NNP
,/,
helped/VBD
American/JJ
companies/NNS
in/IN
April/NNP
when/WRB
it/PRP
lowered/VBD
its/PRP$
tax/NN
on/IN
imported/VBN
spirits/NNS
and/CC
levied/VBD
a/DT
tax/NN
on/IN
many/JJ
domestic/JJ
products/NNS
./.
California/JJ
wineries/NNS
,/,
benefiting/VBG
from/IN
lowered/VBN
trade/NN
barriers/NNS
and/CC
federal/JJ
marketing/NN
subsidies/NNS
,/,
are/VBP
expanding/VBG
aggressively/RB
into/IN
Japan/NNP
,/,
as/RB
well/RB
as/IN
Canada/NNP
and/CC
Great/NNP
Britain/NNP
./.
In/IN
Japan/NNP
,/,
the/DT
wineries/NNS
are/VBP
promoting/VBG
their/PRP$
products/NNS
'/POS
Pacific/JJ
roots/NNS
and/CC
courting/VBG
restaurant/NN
and/CC
hotel/NN
chefs/NNS
,/,
whose/WP$
recommendations/NNS
carry/VBP
weight/NN
./.
In/IN
Australia/NNP
,/,
Britain/NNP
,/,
Canada/NNP
and/CC
Greece/NNP
,/,
Brown-Forman/NNP
Corp./NNP
has/VBZ
increased/VBN
its/PRP$
marketing/NN
of/IN
Southern/NNP
Comfort/NNP
Liqueur/NNP
./.
Using/VBG
cinema/NN
,/,
television/NN
and/CC
print/NN
ads/NNS
,/,
the/DT
company/NN
pitches/VBZ
Southern/NNP
Comfort/NNP
as/IN
a/DT
grand/JJ
old/JJ
drink/NN
of/IN
the/DT
antebellum/JJ
American/NNP
South/NNP
./.
The/DT
biggest/JJS
foreign/JJ
inroads/NNS
,/,
though/RB
,/,
have/VBP
been/VBN
made/VBN
by/IN
bourbon/NN
./.
While/IN
U.S./NNP
makers/NNS
of/IN
vodka/NN
,/,
rum/NN
and/CC
other/JJ
spirits/NNS
compete/VBP
against/IN
powerhouses/NNS
abroad/RB
,/,
trade/NN
agreements/NNS
prohibit/VBP
any/DT
other/JJ
country/NN
from/IN
making/VBG
bourbon/NN
./.
All/DT
bourbon/NN
comes/VBZ
from/IN
Kentucky/NNP
,/,
though/IN
Jack/NNP
Daniel/NNP
's/POS
Tennessee/NNP
whiskey/NN
often/RB
is/VBZ
counted/VBN
as/IN
bourbon/NN
because/IN
of/IN
similarity/NN
of/IN
taste/NN
./.
vodka/NN
has/VBZ
acquired/VBN
an/DT
upscale/NN
image/NN
in/IN
the/DT
U.S./NNP
,/,
bourbon/NN
has/VBZ
become/VBN
fashionable/NN
in/IN
many/JJ
foreign/JJ
countries/NNS
,/,
a/DT
uniquely/RB
American/JJ
product/NN
tied/VBN
to/TO
frontier/NN
folklore/NN
./.
How/WRB
was/VBD
the/DT
West/NN
won/VBN
?/.
With/IN
a/DT
six-shooter/NN
in/IN
one/CD
hand/NN
and/CC
bourbon/NN
in/IN
the/DT
other/JJ
./.
``/``
We/PRP
imagine/VBP
with/IN
bourbon/NN
the/DT
Wild/NNP
West/NNP
,/,
Western/JJ
motion/NN
pictures/NNS
and/CC
gunmen/NNS
appearing/VBG
,/,
''/''
says/VBZ
Kenji/NNP
Kishimoto/NNP
,/,
vice/NN
president/NN
of/IN
Suntory/NNP
International/NNP
Corp./NNP
,/,
a/DT
division/NN
of/IN
Suntory/NNP
Ltd./NNP
,/,
Japan/NNP
's/POS
largest/JJS
liquor/NN
company/NN
./.
Suntory/NNP
distributes/VBZ
Brown-Forman/NNP
bourbons/NNS
in/IN
Japan/NNP
./.
Bourbon/NN
makes/VBZ
up/IN
just/RB
1/CD
%/NN
of/IN
world-wide/JJ
spirits/NNS
consumption/NN
,/,
but/CC
it/PRP
represented/VBD
57/CD
%/NN
of/IN
U.S./NNP
liquor/NN
exports/VBZ
last/JJ
year/NN
,/,
according/VBG
to/TO
Jobson/NNP
;/:
no/DT
other/JJ
category/NN
had/VBD
more/RBR
than/IN
19/CD
%/NN
./.
Big/NNP
U.S./NNP
distillers/NNS
are/VBP
fiercely/RB
vying/VBG
for/IN
this/DT
market/NN
,/,
which/WDT
grew/VBD
to/TO
$/$
77/CD
million/CD
last/JJ
year/NN
from/IN
$/$
33/CD
million/CD
in/IN
1987/CD
,/,
according/VBG
to/TO
government/NN
figures/NNS
./.
Jim/NNP
Beam/NNP
Brands/NNP
Co./NNP
,/,
a/DT
division/NN
of/IN
American/NNP
Brands/NNPS
Inc./NNP
,/,
is/VBZ
the/DT
leading/VBG
exporter/NN
of/IN
bourbon/NN
and/CC
produces/VBZ
10/CD
other/JJ
types/NNS
of/IN
liquor/NN
./.
The/DT
company/NN
says/VBZ
it/PRP
will/MD
increase/VB
its/PRP$
international/JJ
advertising/NN
35/CD
%/NN
in/IN
1990/CD
,/,
with/IN
bourbon/NN
representing/VBG
most/JJS
of/IN
that/DT
amount/NN
./.
Guinness/NNP
's/POS
Schenley/NNP
Industries/NNPS
unit/NN
has/VBZ
increased/VBN
its/PRP$
TV/NN
advertising/NN
in/IN
Japan/NNP
and/CC
has/VBZ
built/VBN
partnerships/NNS
with/IN
duty-free/JJ
shops/NNS
throughout/IN
Asia/NNP
,/,
enabling/VBG
it/PRP
to/TO
install/VB
prominent/JJ
counter/NN
displays/NNS
./.
The/DT
company/NN
's/POS
I.W./NNP
Harper/NNP
brand/NN
is/VBZ
the/DT
leading/VBG
bourbon/NN
in/IN
Japan/NNP
,/,
with/IN
40/CD
%/NN
of/IN
the/DT
market/NN
./.
Bourbon/NN
exporters/NNS
have/VBP
succeeded/VBN
in/IN
Japan/NNP
where/WRB
other/JJ
industries/NNS
have/VBP
failed/VBN
,/,
avoiding/VBG
cultural/JJ
hitches/NNS
in/IN
marketing/NN
and/CC
distribution/NN
by/IN
allying/VBG
themselves/PRP
with/IN
local/JJ
agents/NNS
./.
Jim/NNP
Beam/NNP
Brands/NNPS
has/VBZ
a/DT
distribution/NN
partnership/NN
with/IN
Nikka/NNP
Whiskey/NNP
Co./NNP
,/,
a/DT
distiller/NN
./.
Seagram/NNP
Co./NNP
,/,
which/WDT
exports/VBZ
Four/NNP
Roses/NNPS
bourbon/NN
,/,
has/VBZ
such/PDT
a/DT
link/NN
with/IN
Kirin/NNP
Brewery/NNP
Co/NNP
./.
Some/DT
bourbon/NN
makers/NNS
advertise/VBP
abroad/RB
as/IN
they/PRP
do/VBP
at/IN
home/NN
./.
To/TO
promote/VB
Jack/NNP
Daniel/NNP
's/POS
overseas/NN
,/,
Brown-Forman/NNP
uses/VBZ
the/DT
same/JJ
photos/NNS
of/IN
front/JJ
porches/NNS
from/IN
Lynchburg/NNP
,/,
Va./NNP
,/,
and/CC
avuncular/JJ
old/JJ
men/NNS
in/IN
overalls/NNS
and/CC
hightops/NNS
./.
Jim/NNP
Beam/NNP
print/NN
ads/NNS
,/,
however/RB
,/,
strike/VBP
different/JJ
chords/NNS
in/IN
different/JJ
countries/NNS
./.
In/IN
Australia/NNP
,/,
land/NN
of/IN
the/DT
outback/NN
,/,
a/DT
snapshot/NN
of/IN
Jim/NNP
Beam/NNP
lies/VBZ
on/IN
a/DT
strip/NN
of/IN
hand-tooled/JJ
leather/NN
./.
West/NNP
Germans/NNPS
get/VBP
glitz/NN
,/,
with/IN
bourbon/NN
in/IN
the/DT
foreground/NN
and/CC
a/DT
posh/JJ
Beverly/NNP
Hills/NNP
hotel/NN
in/IN
the/DT
background/NN
./.
Ads/NNS
for/IN
England/NNP
are/VBP
artsy/JJ
and/CC
irreverent/JJ
./.
One/CD
ad/NN
features/VBZ
a/DT
huge/JJ
robot/NN
carrying/VBG
a/DT
voluptuous/JJ
woman/NN
in/IN
a/DT
faint/JJ
./.
The/DT
tagline/NN
:/:
``/``
I/PRP
only/RB
asked/VBD
if/IN
she/PRP
wanted/VBD
a/DT
Jim/NNP
Beam/NNP
./.
''/''
Capital/NNP
Cities\/ABC/NNP
Inc./NNP
's/POS
net/JJ
income/NN
rose/VBD
29/CD
%/NN
on/IN
a/DT
modest/JJ
9/CD
%/NN
increase/NN
in/IN
revenue/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
mainly/RB
on/IN
strong/JJ
advertising/NN
demand/NN
at/IN
its/PRP$
ABC/NNP
television/NN
network/NN
operation/NN
./.
Demand/NN
for/IN
ads/NNS
also/RB
rose/VBD
at/IN
the/DT
eight/CD
TV/NN
stations/NNS
Capital/NNP
Cities/NNPS
owns/VBZ
and/CC
at/IN
its/PRP$
80%-owned/JJ
ESPN/NNP
sports/NNS
cable/NN
channel/NN
./.
The/DT
broadcast/NN
and/CC
publishing/VBG
company/NN
reported/VBD
net/NN
climbed/VBD
to/TO
$/$
80.8/CD
million/CD
,/,
or/CC
$/$
4.56/CD
a/DT
share/NN
,/,
from/IN
$/$
62.6/CD
million/CD
,/,
or/CC
$/$
3.55/CD
a/DT
share/NN
,/,
in/IN
the/DT
year-earlier/JJ
period/NN
./.
Revenue/NN
reached/VBD
$/$
1.1/CD
billion/CD
from/IN
$/$
1.01/CD
billion/CD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/NN
trading/NN
yesterday/NN
,/,
Capital/NNP
Cities/NNPS
closed/VBD
at/IN
$/$
558.50/CD
,/,
down/IN
$/$
5/CD
./.
The/DT
broadcasting/NN
unit/NN
reported/VBD
operating/VBG
profit/NN
of/IN
$/$
134.9/CD
million/CD
,/,
up/IN
18/CD
%/NN
from/IN
the/DT
year-earlier/JJ
$/$
114.3/CD
million/CD
./.
Publishing/NN
reported/VBD
operating/VBG
profit/NN
was/VBD
$/$
33.3/CD
million/CD
,/,
nearly/RB
flat/JJ
with/IN
the/DT
year-before/JJ
$/$
33/CD
million/CD
./.
Revenue/NN
at/IN
the/DT
broadcasting/NN
unit/NN
,/,
consisting/VBG
of/IN
the/DT
network/NN
and/CC
stations/NNS
,/,
advanced/VBD
11/CD
%/NN
,/,
to/TO
$/$
838/CD
million/CD
from/IN
$/$
752.9/CD
million/CD
./.
The/DT
publishing/NN
unit/NN
reported/VBD
revenue/NN
edged/VBD
up/IN
2.6/CD
%/NN
to/TO
$/$
263.2/CD
million/CD
from/IN
$/$
256.6/CD
million/CD
./.
Chairman/NNP
Thomas/NNP
S./NNP
Murphy/NNP
cited/VBD
Capital/NNP
Cities/NNPS
'/POS
nine/CD
daily/JJ
newspapers/NNS
in/IN
explaining/VBG
most/JJS
of/IN
the/DT
gain/NN
./.
The/DT
parent/NN
also/RB
publishes/VBZ
weeklies/NNS
,/,
shopping/VBG
guides/NNS
and/CC
specialty/NN
magazines/NNS
./.
For/IN
1989/CD
's/POS
first/JJ
nine/CD
months/NNS
,/,
Capital/NNP
Cities/NNPS
net/JJ
income/NN
grew/VBD
23/CD
%/NN
to/TO
$/$
303.7/CD
million/CD
,/,
or/CC
$/$
16.97/CD
a/DT
share/NN
,/,
from/IN
$/$
246.9/CD
million/CD
,/,
or/CC
$/$
14.43/CD
a/DT
share/NN
./.
Revenue/NN
eased/VBD
0.3/CD
%/NN
to/TO
$/$
3.45/CD
billion/CD
from/IN
$/$
3.46/CD
billion/CD
./.
Last/JJ
week/NN
,/,
ABC/NNP
unseated/JJ
General/NNP
Electric/NNP
Co./NNP
's/POS
National/NNP
Broadcasting/NNP
Co./NNP
unit/NN
as/IN
the/DT
No./NN
1/CD
network/NN
,/,
as/IN
rated/VBN
by/IN
A.C./NNP
Nielsen/NNP
Co/NNP
./.
ABC/NNP
has/VBZ
four/CD
shows/NNS
in/IN
the/DT
top/NN
10/CD
,/,
including/VBG
the/DT
top/JJ
show/NN
,/,
``/``
Roseanne/NNP
./.
''/''
As/IN
part/NN
of/IN
a/DT
previously/RB
announced/VBN
transaction/NN
,/,
Federal/NNP
Mogul/NNP
Corp./NNP
has/VBZ
bought/VBN
approximately/RB
565,000/CD
shares/NNS
of/IN
its/PRP$
common/JJ
stock/NN
from/IN
Nortek/NNP
Inc./NNP
at/IN
$/$
23.50/CD
a/DT
share/NN
./.
Nortek/NNP
has/VBZ
agreed/VBN
not/RB
to/TO
acquire/VB
any/DT
securities/NNS
of/IN
Federal-Mogul/NNP
for/IN
10/CD
years/NNS
and/CC
not/RB
to/TO
influence/VB
company/NN
affairs/NNS
during/IN
that/DT
period/NN
./.
Weyerhaeuser/NNP
Co./NNP
said/VBD
it/PRP
sold/VBD
its/PRP$
wall-paneling/JJ
business/NN
to/TO
an/DT
affiliate/NN
of/IN
one/CD
of/IN
Indonesia/NNP
's/POS
largest/JJS
wood-products/NNS
firms/NNS
./.
Terms/NNS
of/IN
the/DT
transaction/NN
were/VBD
n't/RB
disclosed/VBN
./.
Weyerhaeuser/NNP
said/VBD
its/PRP$
paneling/NN
business/NN
employs/VBZ
about/IN
300/CD
workers/NNS
at/IN
two/CD
facilities/NNS
in/IN
Chesapeake/NNP
,/,
Va./NNP
,/,
and/CC
Hancock/NNP
,/,
Vt/NNP
./.
Manville/NNP
Corp./NNP
said/VBD
it/PRP
will/MD
build/VB
a/DT
$/$
24/CD
million/CD
power/NN
plant/NN
to/TO
provide/VB
electricity/NN
to/TO
its/PRP$
Igaras/NNP
pulp/NN
and/CC
paper/NN
mill/NN
in/IN
Brazil/NNP
./.
The/DT
company/NN
said/VBD
the/DT
plant/NN
will/MD
ensure/VB
that/IN
it/PRP
has/VBZ
adequate/JJ
energy/NN
for/IN
the/DT
mill/NN
and/CC
will/MD
reduce/VB
the/DT
mill/NN
's/POS
energy/NN
costs/NNS
./.
Manville/NNP
said/VBD
it/PRP
expects/VBZ
the/DT
plant/NN
to/TO
begin/VB
operating/VBG
at/IN
the/DT
end/NN
of/IN
1991/CD
./.
Housing/NNP
and/CC
Urban/NNP
Development/NNP
Secretary/NNP
Jack/NNP
Kemp/NNP
called/VBD
on/IN
the/DT
Federal/NNP
Reserve/NNP
System/NNP
to/TO
lower/VB
interest/NN
rates/NNS
./.
In/IN
a/DT
speech/NN
to/TO
the/DT
Mortgage/NNP
Bankers/NNPS
Association/NNP
,/,
Mr./NNP
Kemp/NNP
broke/VBD
the/DT
administration/NN
's/POS
public/JJ
silence/NN
on/IN
the/DT
Fed/NNP
and/CC
complained/VBD
that/IN
``/``
interest/NN
rates/NNS
are/VBP
too/RB
high/JJ
./.
''/''
``/``
I/PRP
am/VBP
convinced/VBN
that/IN
a/DT
monetary/JJ
policy/NN
for/IN
this/DT
country/NN
that/WDT
would/MD
return/VB
interest/NN
rates/NNS
to/TO
the/DT
historical/JJ
level/NN
of/IN
4/CD
%/NN
or/CC
5/CD
%/NN
would/MD
have/VB
not/RB
only/RB
an/DT
immediate/JJ
impact/NN
on/IN
housing/NN
starts/NNS
,/,
the/DT
housing/NN
stock/NN
,/,
our/PRP$
industry/NN
in/IN
America/NNP
,/,
the/DT
refurbishing/NN
of/IN
our/PRP$
industrial/JJ
system/NN
,/,
it/PRP
would/MD
help/VB
the/DT
Third/NNP
World/NNP
economies/NNS
considerably/RB
and/CC
it/PRP
would/MD
particularly/RB
have/VB
a/DT
favorable/JJ
impact/NN
upon/IN
our/PRP$
budget/NN
deficit/NN
,/,
''/''
Mr./NNP
Kemp/NNP
said/VBD
./.
The/DT
Fed/NNP
recently/RB
eased/VBD
credit/NN
by/IN
lowering/VBG
the/DT
bellwether/NN
federal/JJ
funds/NNS
interest/NN
rate/NN
to/TO
8/CD
3\/4/CD
%/NN
from/IN
about/IN
9/CD
%/NN
./.
Bush/NNP
administration/NN
officials/NNS
say/VBP
inflation/NN
is/VBZ
under/IN
control/NN
./.
With/IN
economic/JJ
growth/NN
slowing/NN
,/,
they/PRP
say/VBP
they/PRP
believe/VBP
the/DT
Fed/NNP
should/MD
ease/VB
credit/NN
even/RB
further/RB
./.
But/CC
for/IN
the/DT
most/JJS
part/NN
,/,
officials/NNS
have/VBP
avoided/VBN
expressing/VBG
those/DT
views/NNS
in/IN
public/NN
,/,
fearing/VBG
they/PRP
would/MD
unnecessarily/RB
antagonize/VB
the/DT
Fed/NNP
./.
McDonald/NNP
's/POS
Corp./NNP
said/VBD
third-quarter/JJ
earnings/NNS
rose/VBD
14/CD
%/NN
on/IN
a/DT
hefty/JJ
sales/NNS
gain/NN
,/,
but/CC
domestic/JJ
franchisees/NNS
apparently/RB
did/VBD
n't/RB
partake/VB
of/IN
the/DT
improvement/NN
./.
The/DT
world/NN
's/POS
largest/JJS
fast-food/NN
chain/NN
said/VBD
net/JJ
income/NN
rose/VBD
to/TO
$/$
217.9/CD
million/CD
,/,
or/CC
59/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
191.3/CD
million/CD
,/,
or/CC
51/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
ago/IN
./.
In/IN
the/DT
latest/JJS
period/NN
,/,
the/DT
company/NN
had/VBD
an/DT
average/NN
of/IN
370.8/CD
million/CD
shares/NNS
,/,
5.6/CD
million/CD
shares/NNS
below/IN
last/JJ
year/NN
's/POS
level/NN
./.
Revenue/NN
rose/VBD
12/CD
%/NN
to/TO
$/$
1.63/CD
billion/CD
from/IN
$/$
1.46/CD
billion/CD
./.
Systemwide/JJ
sales/NNS
,/,
which/WDT
include/VBP
sales/NNS
at/IN
franchisee/NN
as/RB
well/RB
as/IN
company-owned/JJ
stores/NNS
,/,
totaled/VBD
$/$
4.59/CD
billion/CD
compared/VBN
with/IN
$/$
4.2/CD
billion/CD
./.
But/CC
sales/NNS
for/IN
U.S./NNP
franchisees/NNS
were/VBD
flat/JJ
at/IN
best/RB
on/IN
a/DT
per-store/JJ
basis/NN
despite/IN
weak/JJ
1988/CD
figures/NNS
./.
Compared/VBN
with/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
last/JJ
year/NN
,/,
average/JJ
franchisee/NN
store/NN
sales/NNS
this/DT
year/NN
were/VBD
down/IN
nearly/RB
$/$
3,200/CD
,/,
reflecting/VBG
a/DT
fierce/JJ
discounting/VBG
war/NN
among/IN
fast-food/NN
chains/NNS
./.
Since/IN
McDonald/NNP
's/POS
menu/NN
prices/NNS
rose/VBD
this/DT
year/NN
,/,
the/DT
actual/JJ
decline/NN
may/MD
have/VB
been/VBN
more/JJR
./.
McDonald/NNP
's/POS
closed/VBD
at/IN
$/$
31.375/CD
,/,
up/IN
$/$
1/CD
,/,
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/NN
trading/NN
yesterday/NN
./.
While/IN
franchisees/NNS
were/VBD
having/VBG
a/DT
tough/JJ
time/NN
holding/VBG
sales/NNS
,/,
McDonald/NN
's/POS
company-operated/JJ
stores/NNS
posted/VBD
hefty/JJ
gains/NNS
for/IN
the/DT
nine/CD
months/NNS
,/,
with/IN
sales/NNS
per/IN
company-operated/JJ
unit/NN
rising/VBG
$/$
20,000/CD
./.
One/CD
analyst/NN
noted/VBD
that/IN
the/DT
company/NN
often/RB
has/VBZ
better/JJR
store/NN
locations/NNS
than/IN
do/VBP
its/PRP$
franchisees/NNS
,/,
thus/RB
aiding/VBG
promotional/JJ
efforts/NNS
./.
On/IN
average/NN
in/IN
the/DT
latest/JJS
nine/CD
months/NNS
,/,
company-operated/JJ
units/NNS
in/IN
the/DT
U.S./NNP
had/VBD
$/$
90,552/CD
more/RBR
in/IN
sales/NNS
than/IN
did/VBD
franchised/VBN
outlets/NNS
./.
There/EX
are/VBP
more/RBR
than/IN
three/CD
times/NNS
as/IN
many/JJ
franchised/VBN
domestic/JJ
outlets/NNS
as/IN
there/EX
are/VBP
company/NN
stores/NNS
./.
Profit/NN
margins/NNS
at/IN
U.S./NNP
company-owned/JJ
stores/NNS
in/IN
the/DT
quarter/NN
were/VBD
up/IN
nearly/RB
1/CD
%/NN
,/,
which/WDT
the/DT
company/NN
attributed/VBD
in/IN
part/NN
to/TO
lower/JJR
food/NN
costs/NNS
./.
Prudential-Bache/NNP
Securities/NNPS
analyst/NN
Leslie/NNP
Steppel/NNP
said/VBD
reduced/VBN
labor/NN
costs/NNS
helped/VBD
boost/NN
margins/NNS
,/,
although/IN
she/PRP
doubted/VBD
``/``
that/DT
kind/NN
of/IN
performance/NN
is/VBZ
sustainable/JJ
./.
''/''
Calling/VBG
sales/NNS
``/``
still/RB
relatively/RB
soft/JJ
,/,
''/''
Ms./NNP
Steppel/NNP
believes/VBZ
that/IN
in/IN
real/JJ
terms/NNS
,/,
U.S./NNP
sales/NNS
slipped/VBD
3/CD
1\/2/CD
%/NN
to/TO
4/CD
%/NN
at/IN
company-operated/JJ
stores/NNS
in/IN
the/DT
quarter/NN
./.
Apparently/RB
acknowledging/VBG
weaker/JJR
U.S./NNP
sales/NNS
systemwide/JJ
,/,
McDonald/NNP
's/POS
vowed/VBD
``/``
to/TO
use/VB
our/PRP$
size/NN
and/CC
muscle/NN
to/TO
do/VB
all/PDT
that/DT
is/VBZ
necessary/JJ
to/TO
build/VB
the/DT
brand/NN
./.
''/''
Overseas/RB
,/,
both/DT
franchisees/NNS
and/CC
the/DT
company/NN
performed/VBD
substantially/RB
better/RB
than/IN
a/DT
year/NN
ago/IN
./.
Third-quarter/JJ
sales/NNS
in/IN
Europe/NNP
were/VBD
exceptionally/RB
strong/JJ
,/,
boosted/VBN
by/IN
promotional/JJ
programs/NNS
and/CC
new/JJ
products/NNS
--/:
although/IN
weaker/JJR
foreign/JJ
currencies/NNS
reduced/VBD
the/DT
company/NN
's/POS
earnings/NNS
./.
McDonald/NNP
's/POS
said/VBD
that/IN
systemwide/JJ
sales/NNS
would/MD
have/VB
been/VBN
$/$
115/CD
million/CD
greater/JJR
had/VBD
1988/CD
exchange/NN
rates/NNS
remained/VBD
in/IN
effect/NN
./.
``/``
Going/VBG
into/IN
the/DT
fourth/JJ
quarter/NN
the/DT
sales/NNS
comparison/NN
will/MD
be/VB
more/RBR
difficult/JJ
,/,
''/''
predicted/VBN
restaurant/NN
analyst/NN
Howard/NNP
Hansen/NNP
of/IN
Kidder/NNP
,/,
Peabody/NNP
&/CC
Co/NNP
./.
Reflecting/VBG
better/JJR
growth/NN
prospects/NNS
abroad/RB
,/,
McDonald/NNP
's/POS
noted/VBD
that/IN
as/IN
of/IN
Sept./NNP
30/CD
more/JJR
stores/NNS
were/VBD
under/IN
construction/NN
overseas/RB
than/IN
a/DT
year/NN
ago/IN
,/,
while/IN
the/DT
opposite/NN
was/VBD
true/JJ
for/IN
domestic/JJ
expansion/NN
./.
At/IN
the/DT
end/NN
of/IN
the/DT
third/JJ
quarter/NN
McDonald/NNP
's/POS
had/VBD
10,873/CD
units/NNS
operating/VBG
world-wide/JJ
./.
In/IN
the/DT
nine/CD
months/NNS
,/,
earnings/NNS
rose/VBD
12/CD
%/NN
to/TO
$/$
555.6/CD
million/CD
,/,
or/CC
$/$
1.49/CD
a/DT
share/NN
,/,
from/IN
$/$
494.4/CD
million/CD
,/,
or/CC
$/$
1.31/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Revenue/NN
rose/VBD
11/CD
%/NN
to/TO
$/$
4.56/CD
billion/CD
from/IN
$/$
4.12/CD
billion/CD
./.
Carnival/NNP
Cruise/NNP
Lines/NNPS
Inc./NNP
's/POS
common/JJ
stock/NN
was/VBD
dragged/VBN
down/IN
yesterday/NN
amid/IN
concerns/NNS
that/IN
a/DT
bankruptcy/NN
filing/VBG
by/IN
a/DT
Finnish/JJ
shipbuilder/NN
would/MD
delay/VB
delivery/NN
of/IN
three/CD
big/JJ
cruise/NN
ships/NNS
./.
The/DT
Miami-based/JJ
company/NN
's/POS
stock/NN
fell/VBD
$/$
1.75/CD
yesterday/NN
to/TO
$/$
20.75/CD
a/DT
share/NN
in/IN
heavy/JJ
American/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
Early/RB
yesterday/NN
,/,
Carnival/NNP
said/VBD
in/IN
a/DT
company/NN
statement/NN
that/IN
it/PRP
had/VBD
been/VBN
``/``
notified/VBN
unofficially/RB
''/''
that/IN
Waertsilae/NNP
Marine/NNP
Industries/NNPS
,/,
the/DT
Finnish/JJ
shipyard/NN
that/WDT
is/VBZ
building/VBG
its/PRP$
three/CD
new/JJ
cruise/NN
ships/NNS
,/,
planned/VBN
to/TO
file/VB
for/IN
bankruptcy/NN
./.
Officials/NNS
at/IN
Carnival/NNP
declined/VBD
to/TO
comment/VB
./.
``/``
There/EX
is/VBZ
just/RB
a/DT
tremendous/JJ
amount/NN
of/IN
uncertainty/NN
about/IN
what/WP
the/DT
effect/NN
,/,
if/IN
any/DT
,/,
of/IN
all/PDT
this/DT
is/VBZ
,/,
''/''
said/VBD
John/NNP
P./NNP
Uphoff/NNP
,/,
an/DT
analyst/NN
at/IN
Raymond/NNP
James/NNP
Associates/NNPS
Inc/NNP
./.
``/``
I/PRP
did/VBD
n't/RB
even/RB
know/VB
that/IN
a/DT
company/NN
in/IN
a/DT
socialistic/JJ
country/NN
could/MD
file/VB
for/IN
bankruptcy/NN
./.
''/''
Carnival/NNP
said/VBD
the/DT
``/``
Fantasy/NNP
,/,
''/''
the/DT
first/JJ
of/IN
the/DT
three/CD
$/$
200/CD
million/CD
ships/NNS
that/IN
Carnival/NNP
has/VBZ
on/IN
order/NN
,/,
is/VBZ
scheduled/VBN
to/TO
be/VB
delivered/VBN
next/JJ
month/NN
,/,
just/RB
in/IN
time/NN
for/IN
the/DT
winter/NN
tourist/NN
season/NN
in/IN
the/DT
Caribbean/NNP
./.
That/DT
ship/NN
,/,
which/WDT
would/MD
carry/VB
about/IN
2,050/CD
passengers/NNS
,/,
would/MD
expand/VB
the/DT
capacity/NN
of/IN
Carnival/NNP
's/POS
existing/VBG
14-ship/JJ
fleet/NN
by/IN
24/CD
%/NN
./.
The/DT
second/JJ
ship/NN
,/,
which/WDT
is/VBZ
half-completed/JJ
,/,
is/VBZ
scheduled/VBN
to/TO
be/VB
delivered/VBN
in/IN
fall/NN
1990/CD
,/,
and/CC
the/DT
third/JJ
in/IN
fall/NN
1991/CD
./.
``/``
There/EX
's/VBZ
a/DT
99/CD
%/NN
chance/NN
that/IN
the/DT
Fantasy/NNP
will/MD
be/VB
delivered/VBN
close/RB
to/TO
schedule/VB
,/,
''/''
said/VBD
Caroline/NNP
Levy/NNP
,/,
an/DT
analyst/NN
at/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc/NNP
./.
``/``
The/DT
others/NNS
will/MD
probably/RB
be/VB
delivered/VBN
as/RB
well/RB
,/,
but/CC
Carnival/NNP
will/MD
likely/RB
have/VB
to/TO
pay/VB
a/DT
higher/JJR
price/NN
for/IN
them/PRP
./.
''/''
She/PRP
said/VBD
the/DT
company/NN
could/MD
pay/VB
as/RB
much/RB
as/IN
25/CD
%/NN
more/JJR
for/IN
the/DT
ships/NNS
./.
If/IN
the/DT
ships/NNS
are/VBP
n't/RB
delivered/VBN
,/,
however/RB
,/,
it/PRP
will/MD
likely/RB
have/VB
an/DT
effect/NN
on/IN
the/DT
company/NN
's/POS
earnings/NNS
as/RB
soon/RB
as/IN
the/DT
1990/CD
fiscal/JJ
year/NN
,/,
which/WDT
begins/VBZ
Dec./NNP
1/CD
./.
Analysts/NNS
said/VBD
those/DT
estimates/NNS
--/:
which/WDT
range/VBP
from/IN
about/IN
$/$
1.80/CD
a/DT
share/NN
to/TO
$/$
1.95/CD
a/DT
share/NN
--/:
are/VBP
based/VBN
on/IN
Fantasy/NNP
being/VBG
in/IN
operation/NN
in/IN
1990/CD
./.
If/IN
the/DT
ship/NN
fails/VBZ
to/TO
arrive/VB
,/,
those/DT
per-share/JJ
earnings/NNS
estimates/NNS
could/MD
be/VB
trimmed/VBN
15/CD
cents/NNS
or/CC
more/JJR
./.
Analysts/NNS
were/VBD
n't/RB
willing/JJ
to/TO
speculate/VB
on/IN
how/WRB
much/JJ
money/NN
Carnival/NNP
might/MD
lose/VB
through/IN
deposits/NNS
./.
Normally/RB
,/,
a/DT
company/NN
pays/VBZ
a/DT
portion/NN
of/IN
the/DT
total/JJ
cost/NN
of/IN
a/DT
ship/NN
as/IN
it/PRP
reaches/VBZ
various/JJ
stages/NNS
of/IN
construction/NN
./.
Carnival/NNP
,/,
for/IN
example/NN
,/,
has/VBZ
already/RB
paid/VBN
about/IN
$/$
160/CD
million/CD
of/IN
the/DT
total/JJ
cost/NN
for/IN
Fantasy/NNP
./.
Some/DT
analysts/NNS
say/VBP
this/DT
may/MD
give/VB
it/PRP
the/DT
right/NN
to/TO
seize/VB
the/DT
ship/NN
if/IN
the/DT
situation/NN
warrants/VBZ
it/PRP
./.
According/VBG
to/TO
reports/NNS
from/IN
Finland/NNP
,/,
Waertsilae/NNP
Marine/NNP
,/,
19%-owned/JJ
by/IN
conglomerate/JJ
Oy/NNP
Waertsilae/NNP
,/,
filed/VBD
for/IN
bankruptcy/NN
yesterday/NN
after/IN
the/DT
shipyard/NN
's/POS
contractors/NNS
had/VBD
started/VBN
to/TO
demand/VB
bank/NN
guarantees/NNS
./.
The/DT
shipyard/NN
disclosed/VBD
in/IN
mid-August/NNP
that/IN
it/PRP
expected/VBD
losses/NNS
stemming/VBG
from/IN
a/DT
series/NN
of/IN
unprofitable/JJ
orders/NNS
./.
Designer/NN
Sandra/NNP
Garratt/NNP
filed/VBD
for/IN
Chapter/NN
7/CD
Bankruptcy/NNP
Code/NNP
protection/NN
,/,
saying/VBG
that/IN
her/PRP$
cash/NN
flow/NN
had/VBD
been/VBN
cut/VBN
off/IN
./.
The/DT
designer/NN
,/,
whose/WP$
line/NN
of/IN
modular/JJ
,/,
one-size-fits-all/JJ
clothing/NN
has/VBZ
spawned/VBN
a/DT
host/NN
of/IN
clones/NNS
,/,
has/VBZ
been/VBN
in/IN
a/DT
dispute/NN
with/IN
her/PRP$
latest/JJS
licensee/NN
,/,
Jerell/NNP
Inc./NNP
for/IN
several/JJ
months/NNS
./.
Ms./NNP
Garratt/NNP
was/VBD
the/DT
subject/NN
of/IN
a/DT
Wall/NNP
Street/NNP
Journal/NNP
article/NN
in/IN
March/NNP
./.
The/DT
designer/NN
's/POS
attorney/NN
,/,
Molly/NNP
Bartholow/NNP
,/,
said/VBD
that/IN
Ms./NNP
Garratt/NNP
was/VBD
forced/VBN
to/TO
start/VB
bankruptcy-law/NN
proceedings/NNS
because/IN
Jerell/NNP
began/VBD
withholding/VBG
her/PRP$
royalty/NN
payments/NNS
last/JJ
month/NN
./.
Jerell/NNP
paid/VBD
Ms./NNP
Garratt/NNP
royalties/NNS
for/IN
the/DT
line/NN
known/VBN
as/IN
Multiples/NNPS
by/IN
Sandra/NNP
Garratt/NNP
,/,
which/WDT
are/VBP
sold/VBN
primarily/RB
through/IN
department/NN
stores/NNS
./.
Ms./NNP
Garratt/NNP
sued/VBD
the/DT
Dallas/NNP
apparel/NN
maker/NN
earlier/RBR
this/DT
year/NN
,/,
charging/VBG
that/IN
Jerell/NNP
developed/VBD
and/CC
marketed/VBD
clothing/NN
lines/NNS
fashioned/VBN
after/IN
her/PRP$
designs/NNS
,/,
in/IN
violation/NN
of/IN
their/PRP$
contract/NN
./.
That/DT
lawsuit/NN
is/VBZ
still/RB
pending/VBG
./.
Jerell/NNP
could/MD
n't/RB
immediately/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
Ms./NNP
Garratt/NNP
's/POS
assets/NNS
and/CC
liabilities/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Eaton/NNP
Corp./NNP
had/VBD
a/DT
26/CD
%/NN
drop/NN
in/IN
third-quarter/JJ
profit/NN
mainly/RB
because/IN
of/IN
lower/JJR
sales/NNS
of/IN
truck/NN
parts/NNS
,/,
its/PRP$
largest/JJS
and/CC
most/RBS
profitable/JJ
single/JJ
business/NN
./.
Sales/NNS
of/IN
medium/NN
and/CC
heavy-duty/JJ
trucks/NNS
continue/VBP
to/TO
lag/VB
previous-year/JJ
rates/NNS
,/,
leading/VBG
Eaton/NNP
to/TO
expect/VB
fourth-quarter/JJ
net/JJ
income/NN
to/TO
fall/VB
below/IN
year-earlier/JJ
levels/NNS
,/,
said/VBD
Stephen/NNP
R./NNP
Hardis/NNP
,/,
vice/NN
chairman/NN
and/CC
chief/NN
financial/JJ
and/CC
administrative/JJ
officer/NN
./.
He/PRP
declined/VBD
to/TO
make/VB
a/DT
specific/JJ
earnings/NNS
estimate/NN
./.
Third-quarter/JJ
net/NN
was/VBD
$/$
40/CD
million/CD
,/,
or/CC
$/$
1.04/CD
a/DT
share/NN
,/,
from/IN
$/$
54.4/CD
million/CD
,/,
or/CC
$/$
1.47/CD
a/DT
share/NN
,/,
a/DT
year/NN
ago/IN
./.
Sales/NNS
rose/VBD
2.8/CD
%/NN
to/TO
$/$
864.1/CD
million/CD
,/,
from/IN
$/$
840.4/CD
million/CD
./.
The/DT
quarter/NN
net/NN
was/VBD
below/IN
analyst/NN
expectations/NNS
mainly/RB
because/IN
truck-parts/NNS
sales/NNS
did/VBD
n't/RB
rebound/VB
in/IN
September/NNP
from/IN
the/DT
summer/NN
doldrums/NN
as/IN
they/PRP
usually/RB
do/VBP
,/,
said/VBD
Patrick/NNP
E./NNP
Sheridan/NNP
,/,
analyst/NN
with/IN
McDonald/NNP
&/CC
Co/NNP
./.
Mr./NNP
Sheridan/NNP
,/,
who/WP
had/VBD
been/VBN
expecting/VBG
quarter/NN
profit/NN
of/IN
about/IN
$/$
1.25/CD
a/DT
share/NN
,/,
says/VBZ
he/PRP
is/VBZ
reducing/VBG
his/PRP$
estimate/NN
for/IN
the/DT
year/NN
to/TO
the/DT
area/NN
of/IN
$/$
5.70/CD
a/DT
share/NN
,/,
from/IN
his/PRP$
previous/JJ
estimate/NN
of/IN
$/$
6.10/CD
./.
Eli/NNP
Lustgarten/NNP
of/IN
PaineWebber/NNP
Inc./NNP
,/,
who/WP
a/DT
couple/NN
of/IN
weeks/NNS
ago/IN
reduced/VBN
his/PRP$
1989/CD
estimate/NN
to/TO
$/$
5.70/CD
a/DT
share/NN
because/IN
of/IN
the/DT
weakening/NN
truck/NN
market/NN
,/,
says/VBZ
he/PRP
will/MD
make/VB
another/DT
cut/NN
to/TO
about/IN
$/$
5.50/CD
a/DT
share/NN
in/IN
light/NN
of/IN
the/DT
third-quarter/JJ
report/NN
./.
He/PRP
said/VBD
Eaton/NNP
's/POS
quarter/NN
profit/NN
margin/NN
on/IN
controls/NNS
was/VBD
lower/JJR
than/IN
he/PRP
anticipated/VBD
./.
Eaton/NNP
said/VBD
sales/NNS
of/IN
truck/NN
axles/NNS
,/,
transmissions/NNS
and/CC
other/JJ
parts/NNS
fell/VBD
7.2/CD
%/NN
to/TO
$/$
295/CD
million/CD
./.
Sales/NNS
of/IN
parts/NNS
for/IN
cars/NNS
and/CC
construction/NN
vehicles/NNS
rose/VBD
./.
Eaton/NNP
does/VBZ
n't/RB
provide/VB
profit/NN
figures/NNS
separately/RB
for/IN
each/DT
category/NN
,/,
but/CC
operating/VBG
profit/NN
for/IN
vehicle/NN
parts/NNS
as/IN
a/DT
group/NN
fell/VBD
26/CD
%/NN
to/TO
$/$
51/CD
million/CD
on/IN
an/DT
about/IN
1/CD
%/NN
drop/NN
in/IN
sales/NNS
to/TO
$/$
488/CD
million/CD
./.
Mr./NNP
Hardis/NNP
said/VBD
truck-fleet/JJ
operators/NNS
appear/VBP
to/TO
be/VB
cautious/JJ
about/IN
buying/VBG
new/JJ
trucks/NNS
until/IN
they/PRP
see/VBP
how/WRB
the/DT
economy/NN
behaves/VBZ
./.
The/DT
truck/NN
sales/NNS
slowdown/NN
reflects/VBZ
the/DT
general/JJ
slowing/NN
in/IN
sales/NNS
of/IN
consumer/NN
goods/NNS
,/,
he/PRP
said/VBD
,/,
and/CC
the/DT
latest/JJS
reports/NNS
show/VBP
a/DT
slight/JJ
improvement/NN
rather/RB
than/IN
any/DT
indication/NN
of/IN
a/DT
downward/JJ
spiral/NN
./.
Operating/VBG
profit/NN
from/IN
electrical/JJ
and/CC
electronics/NNS
controls/NNS
,/,
Eaton/NNP
's/POS
other/JJ
major/JJ
business/NN
group/NN
,/,
fell/VBD
11/CD
%/NN
to/TO
$/$
32/CD
million/CD
,/,
despite/IN
a/DT
7.7/CD
%/NN
increase/NN
in/IN
sales/NNS
to/TO
$/$
376/CD
million/CD
./.
The/DT
company/NN
attributed/VBD
the/DT
decline/NN
to/TO
weakness/NN
in/IN
the/DT
commercial-switch/JJ
market/NN
in/IN
North/NNP
America/NNP
and/CC
in/IN
the/DT
European/JJ
appliance-controls/NN
market/NN
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
net/JJ
--/:
including/VBG
profit/NN
from/IN
discontinued/VBN
operations/NNS
both/DT
years/NNS
and/CC
in/IN
1988/CD
an/DT
extraordinary/JJ
charge/NN
of/IN
$/$
17.7/CD
million/CD
related/VBN
to/TO
settlement/NN
of/IN
a/DT
lawsuit/NN
--/:
was/VBD
$/$
170.6/CD
million/CD
,/,
or/CC
$/$
4.54/CD
a/DT
share/NN
,/,
up/IN
5.8/CD
%/NN
from/IN
$/$
161.3/CD
million/CD
,/,
or/CC
$/$
4.32/CD
a/DT
share/NN
,/,
a/DT
year/NN
ago/IN
./.
Eaton/NNP
earned/VBD
from/IN
continuing/VBG
operations/NNS
$/$
165.1/CD
million/CD
,/,
or/CC
$/$
4.40/CD
a/DT
share/NN
,/,
down/IN
7/CD
%/NN
from/IN
$/$
177.5/CD
million/CD
,/,
or/CC
$/$
4.76/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Nine-month/JJ
sales/NNS
were/VBD
$/$
2.79/CD
billion/CD
,/,
up/IN
8.2/CD
%/NN
from/IN
$/$
2.58/CD
billion/CD
a/DT
year/NN
earlier/RBR
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Eaton/NNP
closed/VBD
at/IN
$/$
57.50/CD
a/DT
share/NN
,/,
down/IN
$/$
2.50/CD
./.
In/IN
Poland/NNP
's/POS
rapid/JJ
shift/NN
from/IN
socialism/NN
to/TO
an/DT
undefined/JJ
alternative/NN
,/,
environmental/JJ
issues/NNS
have/VBP
become/VBN
a/DT
cutting/VBG
edge/NN
of/IN
broader/JJR
movements/NNS
to/TO
restructure/NN
the/DT
economy/NN
,/,
cut/VBD
cumbersome/JJ
bureaucracies/NNS
,/,
and/CC
democratize/VB
local/JJ
politics/NNS
./.
Initial/JJ
steps/NNS
were/VBD
taken/VBN
at/IN
Poland/NNP
's/POS
first/JJ
international/JJ
environmental/JJ
conference/NN
,/,
which/WDT
I/PRP
attended/VBD
last/JJ
month/NN
./.
The/DT
conference/NN
,/,
held/VBN
in/IN
Lower/NNP
Silesia/NNP
,/,
was/VBD
co-sponsored/JJ
by/IN
the/DT
Environment/NNP
Ministry/NNP
,/,
the/DT
Rockefeller/NNP
Brothers/NNPS
Fund/NNP
,/,
and/CC
the/DT
Polish/NNP
Ecological/NNP
Club/NNP
,/,
and/CC
was/VBD
attended/VBN
by/IN
50/CD
Poles/NNPS
from/IN
government/NN
and/CC
industry/NN
,/,
as/RB
well/RB
as/IN
Hungarians/NNPS
,/,
Czechs/NNPS
,/,
Russians/NNPS
,/,
Japanese/NNPS
and/CC
Americans/NNPS
./.
The/DT
conference/NN
was/VBD
entitled/VBN
``/``
Economic/NNP
Mechanisms/NNPS
for/IN
Environmental/NNP
Protection/NNP
,/,
''/''
a/DT
significant/JJ
departure/NN
from/IN
East/NNP
Bloc/NNP
usage/NN
,/,
which/WDT
recognizes/VBZ
only/RB
one/CD
economic/JJ
mechanism/NN
--/:
central/JJ
planning/NN
--/:
to/TO
direct/VB
industrial/JJ
behavior/NN
./.
Even/RB
more/RBR
remarkably/RB
,/,
it/PRP
focused/VBD
on/IN
emissions/NNS
trading/NN
and/CC
similar/JJ
market/NN
approaches/VBZ
to/TO
address/VB
pollution/NN
,/,
notwithstanding/IN
Poland/NNP
's/POS
lack/NN
of/IN
functioning/VBG
markets/NNS
./.
Why/WRB
did/VBD
East/NNP
Bloc/NNP
participants/NNS
unanimously/RB
endorse/VB
market-based/JJ
pollution/NN
approaches/NNS
?/.
The/DT
answer/NN
lies/VBZ
both/DT
in/IN
the/DT
degraded/JJ
environment/NN
of/IN
these/DT
countries/NNS
and/CC
the/DT
perceived/VBN
causes/NNS
of/IN
that/DT
degradation/NN
./.
Like/IN
other/JJ
East/NNP
Bloc/NNP
countries/NNS
,/,
Poland/NNP
possesses/VBZ
environmental/JJ
laws/NNS
more/RBR
honored/VBN
in/IN
their/PRP$
breach/NN
than/IN
in/IN
their/PRP$
observance/NN
./.
According/VBG
to/TO
a/DT
detailed/VBN
report/NN
by/IN
Zbigniew/NNP
Bochniarz/NNP
of/IN
the/DT
University/NNP
of/IN
Minnesota/NNP
's/POS
Hubert/NNP
Humphrey/NNP
Institute/NNP
,/,
27/CD
areas/NNS
containing/VBG
a/DT
third/JJ
of/IN
Poland/NNP
's/POS
population/NN
are/VBP
regarded/VBN
as/IN
``/``
ecological/JJ
hazards/NNS
''/''
due/JJ
to/TO
multiple/JJ
violations/NNS
of/IN
standards/NNS
./.
Norms/NNS
are/VBP
consistently/RB
exceeded/VBN
at/IN
60/CD
%/NN
of/IN
nitrogen/NN
oxide/NN
monitoring/VBG
sites/NNS
and/CC
80/CD
%/NN
of/IN
those/DT
for/IN
dust/NN
and/CC
soot/NN
emissions/NNS
./.
Four-fifths/NNS
of/IN
Poland/NNP
's/POS
soils/NNS
have/VBP
become/VBN
highly/RB
acidified/VBN
;/:
70/CD
%/NN
of/IN
its/PRP$
southern/JJ
forests/NNS
are/VBP
projected/VBN
to/TO
die/VB
by/IN
century/NN
's/POS
end/NN
./.
Between/IN
1965/CD
and/CC
1985/CD
,/,
Polish/NNP
waters/NNS
fit/VBP
for/IN
human/JJ
consumption/NN
dropped/VBD
from/IN
33/CD
%/NN
to/TO
6/CD
%/NN
of/IN
all/DT
surface/NN
waters/NNS
,/,
while/IN
those/DT
unfit/JJ
even/RB
for/IN
industry/NN
use/NN
nearly/RB
doubled/VBD
./.
Poland/NNP
produces/VBZ
about/IN
20/CD
times/NNS
more/JJR
soot/NN
and/CC
five/CD
times/NNS
more/RBR
sulfur/NN
dioxide/NN
and/CC
solid/JJ
waste/NN
per/IN
unit/NN
of/IN
gross/JJ
national/JJ
product/NN
than/IN
does/VBZ
Western/NNP
Europe/NNP
./.
Its/PRP$
mortality/NN
rate/NN
for/IN
males/NNS
over/IN
35/CD
is/VBZ
about/IN
50/CD
%/NN
higher/JJR
than/IN
West/NNP
Germany/NNP
's/POS
,/,
and/CC
50/CD
%/NN
higher/JJR
in/IN
hazard/NN
areas/NNS
than/IN
the/DT
national/JJ
average/NN
./.
Since/IN
1978/CD
,/,
average/JJ
annual/JJ
growth/NN
rates/NNS
for/IN
most/JJS
pollutants/NNS
have/VBP
outstripped/VBN
the/DT
growth/NN
of/IN
GNP/NNP
./.
Conference/NN
participants/NNS
saw/VBD
these/DT
effects/NNS
as/IN
flowing/VBG
directly/RB
from/IN
(/(
a/DT
Marxist/JJ
devaluation/NN
of/IN
environmental/JJ
resources/NNS
,/,
which/WDT
are/VBP
not/RB
produced/VBN
by/IN
labor/NN
;/:
(/(
b/NN
economies/NNS
'/POS
inability/NN
to/TO
control/VB
pollution/NN
where/WRB
enterprises/NNS
are/VBP
state-owned/JJ
and/CC
penalties/NNS
are/VBP
paid/VBN
by/IN
the/DT
government/NN
;/:
and/CC
(/(
c/NN
the/DT
continuing/VBG
Stalinist/JJ
emphasis/NN
on/IN
heavy/JJ
industry/NN
for/IN
economic/JJ
development/NN
,/,
producing/VBG
a/DT
far/RB
heavier/JJR
and/CC
more/RBR
wasteful/JJ
use/NN
of/IN
energy/NN
and/CC
natural/JJ
resources/NNS
than/IN
in/IN
the/DT
West/NN
./.
They/PRP
repeatedly/RB
noted/VBD
that/DT
environmental/JJ
progress/NN
could/MD
not/RB
be/VB
secured/VBN
without/IN
true/JJ
ownership/NN
,/,
genuine/JJ
competition/NN
based/VBN
on/IN
market/NN
factors/NNS
,/,
and/CC
the/DT
risk/NN
of/IN
bankruptcy/NN
if/IN
a/DT
business/NN
makes/VBZ
the/DT
wrong/JJ
decisions/NNS
./.
The/DT
solutions/NNS
they/PRP
formally/RB
proposed/VBD
included/VBN
lead\/sulfur/NN
taxes/NNS
,/,
conservation/NN
and/CC
recycling/VBG
incentives/NNS
,/,
reforestation/NN
offsets/NNS
,/,
transferable/JJ
pollution/NN
permits/VBZ
,/,
an/DT
ecological/JJ
bank/NN
to/TO
finance/VB
pollution-reduction/NN
credits/NNS
,/,
and/CC
debt-for-environment/NN
swaps/NNS
./.
But/CC
their/PRP$
most/JJS
fundamental/JJ
recommendation/NN
was/VBD
to/TO
separate/VB
industry/NN
from/IN
the/DT
state/NN
,/,
making/VBG
it/PRP
fully/RB
accountable/JJ
for/IN
pollution/NN
control/NN
./.
A/DT
revolution/NN
takes/VBZ
more/RBR
than/IN
conference/NN
manifestos/NNS
./.
Indeed/RB
,/,
skepticism/NN
was/VBD
amply/RB
captured/VBN
by/IN
a/DT
joke/NN
told/VBN
by/IN
Poles/NNPS
at/IN
the/DT
conference/NN
:/:
``/``
The/DT
world/NN
must/MD
be/VB
coming/VBG
to/TO
an/DT
end/NN
./.
The/DT
Russians/NNPS
are/VBP
talking/VBG
peace/NN
./.
The/DT
Palestinians/NNPS
are/VBP
talking/VBG
elections/NNS
./.
And/CC
the/DT
Poles/NNPS
are/VBP
engaged/VBN
in/IN
commerce/NN
./.
''/''
But/CC
the/DT
implications/NNS
of/IN
such/PDT
a/DT
shift/NN
to/TO
market/NN
approaches/NNS
go/VBP
well/RB
beyond/IN
the/DT
fact/NN
that/IN
Poland/NNP
is/VBZ
already/RB
working/VBG
on/IN
nationwide/JJ
emissions/NNS
trades/NNS
to/TO
reduce/VB
smelter/NN
pollution/NN
,/,
or/CC
that/IN
the/DT
Soviets/NNPS
plan/NN
to/TO
introduce/VB
marketable/JJ
pollution/NN
permits/NNS
in/IN
some/DT
republics/NNS
next/IN
year/NN
./.
Those/DT
implications/NNS
include/VBP
:/:
--/:
Privatization/NN
./.
Faced/VBN
with/IN
a/DT
$/$
40/CD
billion/CD
foreign/JJ
debt/NN
and/CC
skyrocketing/VBG
inflation/NN
,/,
Poland/NNP
must/MD
privatize/VB
industry/NN
and/CC
eliminate/VB
subsidies/NNS
to/TO
stabilize/VB
its/PRP$
currency/NN
and/CC
qualify/VB
for/IN
international/JJ
assistance/NN
./.
Market-based/JJ
pollution/NN
control/NN
may/MD
consume/VB
some/DT
capital/NN
that/WDT
would/MD
otherwise/RB
purchase/VB
state/NN
industries/NNS
./.
But/CC
it/PRP
could/MD
also/RB
accelerate/VB
``/``
marketization/NN
''/''
by/IN
reinforcing/VBG
industrial/JJ
accountability/NN
,/,
breaking/VBG
up/IN
state/NN
monopolies/NNS
,/,
giving/VBG
managers/NNS
a/DT
stake/NN
in/IN
solutions/NNS
,/,
and/CC
ensuring/VBG
that/DT
modernization/NN
is/VBZ
not/RB
reversible/JJ
for/IN
failure/NN
to/TO
address/VB
environmental/JJ
effects/NNS
./.
--/:
Least-cost/JJ
solutions/NNS
./.
As/IN
conferees/NNS
noted/VBN
,/,
scarce/JJ
capital/NN
means/VBZ
the/DT
costs/NNS
of/IN
control/NN
must/MD
be/VB
minimized/VBN
through/IN
a/DT
broad/JJ
menu/NN
of/IN
compliance/NN
choices/NNS
for/IN
individual/JJ
firms/NNS
./.
That/DT
means/VBZ
simple/JJ
,/,
clear/JJ
rules/NNS
that/WDT
secure/VBP
the/DT
first/JJ
large/JJ
blocks/NNS
of/IN
reduction/NN
,/,
deferring/VBG
more/JJR
complex/JJ
issues/NNS
such/JJ
as/IN
risk/NN
./.
It/PRP
also/RB
means/VBZ
use/NN
of/IN
quantity-based/JJ
pollution/NN
limits/NNS
such/JJ
as/IN
transferable/JJ
permits/NNS
,/,
rather/RB
than/IN
price-based/JJ
limits/NNS
such/JJ
as/IN
effluent/JJ
fees/NNS
./.
That/DT
's/VBZ
because/IN
quota-trained/JJ
managers/NNS
will/MD
likely/RB
respond/VB
better/RB
to/TO
quantity/NN
than/IN
to/TO
price/NN
signals/NNS
./.
--/:
Creative/JJ
financing/NN
./.
Even/RB
least-cost/JJ
environmental/JJ
solutions/NNS
will/MD
require/VB
billions/NNS
of/IN
dollars/NNS
./.
New/JJ
types/NNS
of/IN
financing/NN
must/MD
make/VB
funds/NNS
available/JJ
without/IN
draining/VBG
Poland/NNP
's/POS
hard-currency/NN
reserves/NNS
./.
--/:
Democratization/NN
./.
East/NNP
Bloc/NNP
pollution/NN
data/NNS
typically/RB
have/VBP
been/VBN
state/NN
secrets/NNS
./.
While/IN
Polish/NNP
data/NNS
have/VBP
been/VBN
freely/RB
available/JJ
since/IN
1980/CD
,/,
it/PRP
was/VBD
no/DT
accident/NN
that/IN
participants/NNS
urged/VBD
the/DT
free/JJ
flow/NN
of/IN
information/NN
./.
For/IN
once/RB
information/NN
flows/VBZ
,/,
public/JJ
participation/NN
follows/VBZ
and/CC
repression/NN
becomes/VBZ
difficult/JJ
to/TO
reimpose/VB
./.
--/:
Global/JJ
reciprocity/NN
./.
One/CD
participant/NN
prematurely/RB
declared/VBD
that/IN
America/NNP
has/VBZ
had/VBN
a/DT
free/JJ
market/NN
in/IN
goods/NNS
but/CC
a/DT
planned/VBN
economy/NN
for/IN
environmental/JJ
protection/NN
,/,
while/IN
Poland/NNP
represents/VBZ
the/DT
opposite/NN
./.
His/PRP$
point/NN
:/:
It/PRP
will/MD
be/VB
increasingly/RB
difficult/JJ
for/IN
the/DT
U.S./NNP
to/TO
cling/VB
to/TO
command-and-control/JJ
measures/NNS
if/IN
even/RB
the/DT
East/NNP
Bloc/NNP
steps/VBZ
to/TO
a/DT
different/JJ
drummer/NN
./.
At/IN
the/DT
moment/NN
,/,
Poland/NNP
resembles/VBZ
19th-century/JJ
Pittsburgh/NNP
more/JJR
than/IN
a/DT
modern/JJ
industrial/JJ
society/NN
--/:
with/IN
antiquated/JJ
production/NN
,/,
inadequate/JJ
environmental/JJ
management/NN
,/,
and/CC
little/RB
ecological/JJ
awareness/NN
./.
But/CC
the/DT
continuing/VBG
pressures/NNS
for/IN
free-market/JJ
economics/NNS
suggest/VBP
the/DT
conference/NN
's/POS
vision/NN
was/VBD
not/RB
all/DT
fantasy/NN
./.
Mr./NNP
Levin/NNP
,/,
former/JJ
head/NN
of/IN
EPA/NNP
's/POS
regulatory/JJ
reform/NN
staff/NN
,/,
adapted/VBD
this/DT
from/IN
his/PRP$
November/NNP
column/NN
for/IN
the/DT
Journal/NNP
of/IN
the/DT
Air/NNP
and/CC
Waste/NNP
Management/NNP
Association/NNP
./.
Disappointing/JJ
earnings/NNS
news/NN
from/IN
some/DT
technology/NN
companies/NNS
unnerved/JJ
investors/NNS
in/IN
the/DT
over-the-counter/JJ
market/NN
,/,
who/WP
sold/VBD
shares/NNS
of/IN
Apple/NNP
Computer/NNP
,/,
Intel/NNP
and/CC
many/JJ
other/JJ
computer-related/JJ
concerns/NNS
./.
The/DT
drop/NN
in/IN
those/DT
and/CC
other/JJ
technology/NN
stocks/NNS
contributed/VBD
to/TO
an/DT
0.7/CD
%/NN
slide/NN
by/IN
the/DT
Nasdaq/NNP
composite/JJ
index/NN
./.
It/PRP
finished/VBD
at/IN
467.22/CD
,/,
down/IN
3.45/CD
./.
The/DT
nervousness/NN
about/IN
the/DT
technology/NN
stock/NN
outlook/NN
also/RB
hurt/VBD
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
,/,
which/WDT
slipped/VBD
about/IN
1/CD
%/NN
./.
Mostly/RB
because/IN
of/IN
the/DT
sell-off/NN
in/IN
technology/NN
stocks/NNS
,/,
the/DT
Nasdaq/NNP
100/CD
Index/NNP
of/IN
the/DT
OTC/NNP
's/POS
largest/JJS
non-financial/JJ
issues/NNS
dropped/VBD
4.58/CD
to/TO
457.52/CD
./.
The/DT
Nasdaq/NNP
Financial/NNP
Index/NNP
of/IN
giant/JJ
insurance/NN
and/CC
banking/NN
issues/NNS
lost/VBD
2.38/CD
to/TO
458.32/CD
./.
Some/DT
traders/NNS
said/VBD
the/DT
sell-off/NN
of/IN
technology/NN
stocks/NNS
on/IN
low/JJ
volume/NN
reflected/VBD
a/DT
lack/NN
of/IN
conviction/NN
by/IN
investors/NNS
./.
But/CC
Charlie/NNP
Howley/NNP
,/,
vice/NN
president/NN
in/IN
charge/NN
of/IN
OTC/NNP
trading/NN
at/IN
SoundView/NNP
Financial/NNP
in/IN
Stamford/NNP
,/,
Conn./NNP
,/,
said/VBD
the/DT
selling/NN
was/VBD
orderly/JJ
./.
``/``
It/PRP
's/VBZ
a/DT
quiet/JJ
retreat/NN
,/,
''/''
said/VBD
Mr./NNP
Howley/NNP
./.
``/``
It/PRP
's/VBZ
nothing/NN
dramatic/JJ
,/,
just/RB
a/DT
routine/JJ
sell-off/NN
./.
''/''
Some/DT
of/IN
it/PRP
was/VBD
due/JJ
to/TO
lower-than-expected/JJ
earnings/NNS
from/IN
leading/VBG
companies/NNS
,/,
he/PRP
said/VBD
./.
But/CC
some/DT
of/IN
it/PRP
also/RB
represented/VBD
profit-taking/NN
by/IN
investors/NNS
who/WP
have/VBP
made/VBN
big/JJ
gains/NNS
in/IN
some/DT
issues/NNS
./.
Yesterday/NN
's/POS
volume/NN
of/IN
117.2/CD
million/CD
shares/NNS
was/VBD
far/RB
below/IN
last/JJ
week/NN
's/POS
sizzling/VBG
average/NN
of/IN
nearly/RB
177/CD
million/CD
./.
For/IN
October/NNP
so/RB
far/RB
,/,
daily/JJ
volume/NN
is/VBZ
averaging/VBG
150.3/CD
million/CD
,/,
putting/VBG
it/PRP
on/IN
track/NN
to/TO
be/VB
the/DT
year/NN
's/POS
busiest/JJS
month/NN
./.
Apple/NNP
Computer/NNP
,/,
which/WDT
reported/VBD
lackluster/NN
earnings/NNS
Friday/NNP
,/,
lost/VBD
1/CD
1\/4/CD
to/TO
46/CD
3\/4/CD
on/IN
1.1/CD
million/CD
shares/NNS
./.
Stratus/NNP
Computer/NNP
,/,
which/WDT
reported/VBD
earnings/NNS
late/JJ
Friday/NNP
that/WDT
were/VBD
in/IN
line/NN
with/IN
a/DT
disappointing/JJ
forecast/NN
,/,
eased/VBD
3\/4/CD
to/TO
24/CD
on/IN
816,000/CD
shares/NNS
./.
Investors/NNS
apparently/RB
did/VBD
n't/RB
like/IN
the/DT
news/NN
from/IN
Rainbow/NNP
Technologies/NNPS
either/RB
./.
It/PRP
said/VBD
net/JJ
income/NN
was/VBD
17/CD
cents/NNS
a/DT
share/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
compared/VBN
with/IN
16/CD
cents/NNS
a/DT
share/NN
a/DT
year/NN
earlier/RBR
./.
Rainbow/NNP
's/POS
stock/NN
dropped/VBD
2/CD
to/TO
14/CD
1\/4/CD
./.
Other/JJ
technology/NN
stocks/NNS
that/WDT
were/VBD
weaker/JJR
included/VBD
Intel/NNP
,/,
which/WDT
fell/VBD
1/CD
1\/4/CD
to/TO
33/CD
1\/2/CD
on/IN
1.9/CD
million/CD
shares/NNS
,/,
Mentor/NNP
Graphics/NNP
,/,
down/IN
3\/4/CD
to/TO
16/CD
1\/4/CD
on/IN
1.6/CD
million/CD
shares/NNS
,/,
Sun/NNP
Microsystems/NNPS
,/,
which/WDT
slipped/VBD
3\/8/CD
to/TO
18/CD
1\/4/CD
,/,
and/CC
MCI/NNP
Communications/NNPS
,/,
down/IN
1/CD
to/TO
42/CD
3\/4/CD
./.
Microsoft/NNP
,/,
which/WDT
last/JJ
week/NN
rose/VBD
to/TO
a/DT
record/NN
,/,
fell/VBD
victim/NN
to/TO
profit-taking/NN
,/,
traders/NNS
said/VBD
,/,
as/IN
it/PRP
declined/VBD
2/CD
1\/8/CD
to/TO
83/CD
1\/8/CD
./.
Conner/NNP
Peripherals/NNPS
was/VBD
unchanged/JJ
at/IN
15/CD
./.
Among/IN
takeover/NN
stocks/NNS
,/,
Jefferson/NNP
Smurfit/NNP
jumped/VBD
1/CD
1\/4/CD
to/TO
42/CD
1\/2/CD
after/IN
SIBV-MS/NNP
Holdings/NNP
said/VBD
the/DT
price/NN
to/TO
be/VB
paid/VBN
to/TO
Jefferson/NNP
Smurfit/NNP
's/POS
minority/NN
holders/NNS
has/VBZ
been/VBN
raised/VBN
to/TO
$/$
43/CD
a/DT
share/NN
./.
The/DT
increase/NN
of/IN
$/$
1.25/CD
a/DT
share/NN
is/VBZ
being/VBG
made/VBN
to/TO
settle/VB
shareholder/NN
litigation/NN
relating/VBG
to/TO
SIBV-MS/NNP
's/POS
tender/NN
offer/NN
./.
SIBV-MS/NNP
Holdings/NNP
is/VBZ
a/DT
new/JJ
company/NN
jointly/RB
owned/VBN
by/IN
an/DT
affiliate/NN
of/IN
Jefferson/NNP
Smurfit/NNP
and/CC
a/DT
Morgan/NNP
Stanley/NNP
limited/JJ
partnership/NN
./.
The/DT
Jefferson/NNP
Smurfit/NNP
affiliate/NN
,/,
Smurfit/NNP
International/NNP
B.V./NNP
,/,
holds/VBZ
about/IN
78/CD
%/NN
of/IN
the/DT
shares/NNS
outstanding/JJ
./.
These/DT
shares/NNS
will/MD
be/VB
bought/VBN
by/IN
SIBV-MS/NNP
Holdings/NNP
at/IN
$/$
41.75/CD
each/DT
after/IN
the/DT
acquisition/NN
of/IN
the/DT
minority/NN
shares/NNS
./.
Another/DT
takeover/NN
target/NN
,/,
LIN/NNP
Broadcasting/NNP
,/,
eased/VBD
1\/2/CD
to/TO
110/CD
1\/8/CD
on/IN
313,800/CD
shares/NNS
./.
LIN/NNP
's/POS
suitor/NN
,/,
McCaw/NNP
Cellular/NNP
Communications/NNP
,/,
dropped/VBD
1/CD
to/TO
40/CD
on/IN
almost/RB
350,000/CD
shares/NNS
./.
Some/DT
analysts/NNS
say/VBP
investors/NNS
will/MD
begin/VB
paying/VBG
more/JJR
attention/NN
to/TO
earnings/NNS
,/,
partly/RB
in/IN
response/NN
to/TO
the/DT
latest/JJS
round/NN
of/IN
disappointments/NNS
./.
They/PRP
say/VBP
investors/NNS
will/MD
favor/VB
companies/NNS
that/WDT
historically/RB
have/VBP
posted/VBN
annual/JJ
earnings/NNS
growth/NN
of/IN
15/CD
%/NN
to/TO
20/CD
%/NN
./.
That/DT
would/MD
be/VB
good/JJ
news/NN
for/IN
the/DT
OTC/NNP
market/NN
,/,
some/DT
analysts/NNS
say/VBP
,/,
because/IN
many/JJ
small/JJ
growth/NN
stocks/NNS
are/VBP
traded/VBN
there/RB
./.
Michael/NNP
R./NNP
Weisberg/NNP
,/,
partner/NN
in/IN
charge/NN
of/IN
research/NN
at/IN
Robertson/NNP
Stephens/NNP
&/CC
Co./NNP
in/IN
San/NNP
Francisco/NNP
,/,
said/VBD
some/DT
investors/NNS
have/VBP
already/RB
made/VBN
the/DT
switch/NN
./.
The/DT
Robertson/NNP
Stephens/NNP
Index/NNP
of/IN
340/CD
emerging/VBG
growth/NN
stocks/NNS
is/VBZ
up/IN
23.1/CD
%/NN
for/IN
the/DT
year/NN
through/IN
Friday/NNP
./.
The/DT
rise/NN
matches/VBZ
that/IN
of/IN
the/DT
Dow/NNP
Jones/NNP
industrials/NNS
this/DT
year/NN
./.
``/``
It/PRP
's/VBZ
been/VBN
a/DT
spectacular/JJ
year/NN
for/IN
the/DT
emerging/VBG
growth/NN
stock/NN
investor/NN
,/,
''/''
Mr./NNP
Weisberg/NNP
said/VBD
./.
He/PRP
predicted/VBD
that/IN
the/DT
most/RBS
popular/JJ
growth/NN
companies/NNS
will/MD
be/VB
those/DT
with/IN
``/``
some/DT
kind/NN
of/IN
unique/JJ
product/NN
or/CC
franchise/NN
''/''
that/WDT
makes/VBZ
them/PRP
appear/VB
able/JJ
to/TO
sustain/VB
their/PRP$
momentum/NN
./.
He/PRP
puts/VBZ
the/DT
OTC/NNP
market/NN
's/POS
Nellcor/NNP
,/,
Office/NNP
Club/NNP
and/CC
BizMart/NNP
on/IN
the/DT
list/NN
./.
Nellcor/NNP
,/,
a/DT
maker/NN
of/IN
electronic/JJ
patient/NN
monitoring/NN
systems/NNS
,/,
was/VBD
up/IN
3\/4/CD
to/TO
16/CD
7\/8/CD
on/IN
258,000/CD
shares/NNS
yesterday/NN
,/,
while/IN
retailing/VBG
issue/NN
Office/NNP
Club/NNP
was/VBD
unchanged/JJ
at/IN
10/CD
3\/4/CD
on/IN
65,200/CD
shares/NNS
./.
BizMart/NNP
,/,
another/DT
retailing/VBG
stock/NN
,/,
was/VBD
off/IN
3\/8/CD
to/TO
8/CD
1\/4/CD
on/IN
nearly/RB
80,000/CD
shares/NNS
./.
Other/JJ
favorites/NNS
of/IN
growth-stock/JJ
analysts/NNS
and/CC
money/NN
managers/NNS
also/RB
had/VBD
a/DT
mixed/VBN
session/NN
./.
Payco/NNP
American/NNP
,/,
a/DT
credit/NN
collection/NN
concern/NN
,/,
jumped/VBD
1/CD
3\/8/CD
to/TO
20/CD
5\/8/CD
on/IN
volume/NN
of/IN
93,000/CD
,/,
and/CC
Mail/NNP
Boxes/NNPS
Etc./NNP
,/,
a/DT
private/JJ
postal/JJ
services/NNS
company/NN
,/,
advanced/VBD
1\/2/CD
to/TO
23/CD
1\/2/CD
on/IN
volume/NN
of/IN
64,000/CD
./.
But/CC
Legent/NNP
,/,
a/DT
systems/NNS
software/NN
stock/NN
,/,
was/VBD
down/IN
1\/2/CD
to/TO
29/CD
3\/4/CD
on/IN
39,300/CD
shares/NNS
./.
Novell/NNP
,/,
a/DT
computer/NN
networking/VBG
concern/NN
,/,
fell/VBD
1/CD
1\/2/CD
to/TO
30/CD
on/IN
152,000/CD
shares/NNS
./.
Elsewhere/RB
,/,
Valley/NNP
National/NNP
continued/VBD
its/PRP$
slide/NN
,/,
dropping/VBG
2/CD
1\/8/CD
to/TO
15/CD
on/IN
1.7/CD
million/CD
shares/NNS
./.
The/DT
Arizona/NNP
banking/NN
concern/NN
is/VBZ
facing/VBG
difficulties/NNS
related/VBN
to/TO
weakness/NN
in/IN
the/DT
real/JJ
estate/NN
market/NN
in/IN
the/DT
state/NN
./.
Higher/JJR
earnings/NNS
helped/VBD
some/DT
issues/NNS
./.
Amgen/NNP
rose/VBD
2/CD
1\/4/CD
to/TO
54/CD
3\/4/CD
on/IN
almost/RB
800,000/CD
shares/NNS
,/,
and/CC
CVB/NNP
Financial/NNP
jumped/VBD
4/CD
to/TO
41/CD
on/IN
only/RB
1,000/CD
shares/NNS
./.
Why/WRB
ca/MD
n't/RB
we/PRP
teach/VB
our/PRP$
children/NNS
to/TO
read/VB
,/,
write/VB
and/CC
reckon/VB
?/.
It/PRP
's/VBZ
not/RB
that/IN
we/PRP
do/VBP
n't/RB
know/VB
how/WRB
to/TO
,/,
because/IN
we/PRP
do/VBP
./.
It/PRP
's/VBZ
that/IN
we/PRP
do/VBP
n't/RB
want/VB
to/TO
./.
And/CC
the/DT
reason/NN
we/PRP
do/VBP
n't/RB
want/VB
to/TO
is/VBZ
that/IN
effective/JJ
education/NN
would/MD
require/VB
us/PRP
to/TO
relinquish/VB
some/DT
cherished/VBN
metaphysical/JJ
beliefs/NNS
about/IN
human/JJ
nature/NN
in/IN
general/JJ
and/CC
the/DT
human/JJ
nature/NN
of/IN
young/JJ
people/NNS
in/IN
particular/JJ
,/,
as/RB
well/RB
as/IN
to/TO
violate/VB
some/DT
cherished/VBN
vested/VBN
interests/NNS
./.
These/DT
beliefs/NNS
so/RB
dominate/VB
our/PRP$
educational/JJ
establishment/NN
,/,
our/PRP$
media/NNS
,/,
our/PRP$
politicians/NNS
,/,
and/CC
even/RB
our/PRP$
parents/NNS
that/IN
it/PRP
seems/VBZ
almost/RB
blasphemous/JJ
to/TO
challenge/VB
them/PRP
./.
Here/RB
is/VBZ
an/DT
example/NN
./.
If/IN
I/PRP
were/VBD
to/TO
ask/VB
a/DT
sample/NN
of/IN
American/JJ
parents/NNS
,/,
``/``
Do/VBP
you/PRP
wish/VB
the/DT
elementary/JJ
schools/NNS
to/TO
encourage/VB
creativity/NN
in/IN
your/PRP$
children/NNS
?/.
''/''
the/DT
near-unanimous/JJ
answer/NN
would/MD
be/VB
,/,
``/``
Yes/UH
,/,
of/IN
course/NN
./.
''/''
But/CC
what/WP
do/VBP
we/PRP
mean/VB
,/,
specifically/RB
,/,
by/IN
``/``
creativity/NN
''/''
?/.
No/DT
one/NN
can/MD
say/VB
./.
In/IN
practice/NN
,/,
it/PRP
ends/VBZ
up/IN
being/VBG
equated/VBN
with/IN
a/DT
``/``
self-expression/NN
''/''
that/WDT
encourages/VBZ
the/DT
youngsters/NNS
'/POS
``/``
self-esteem/NN
./.
''/''
The/DT
result/NN
is/VBZ
a/DT
generation/NN
of/IN
young/JJ
people/NNS
whose/WP$
ignorance/NN
and/CC
intellectual/JJ
incompetence/NN
is/VBZ
matched/VBN
only/RB
by/IN
their/PRP$
good/JJ
opinion/NN
of/IN
themselves/PRP
./.
The/DT
whole/JJ
notion/NN
of/IN
``/``
creativity/NN
''/''
in/IN
education/NN
was/VBD
(/(
and/CC
is/VBZ
)/)
part/NN
and/CC
parcel/NN
of/IN
a/DT
romantic/JJ
rebellion/NN
against/IN
disciplined/VBN
instruction/NN
,/,
which/WDT
was/VBD
(/(
and/CC
is/VBZ
)/)
regarded/VBN
as/IN
``/``
authoritarian/JJ
,/,
''/''
a/DT
repression/NN
and/CC
frustration/NN
of/IN
the/DT
latent/NN
talents/NNS
and/CC
the/DT
wonderful/JJ
,/,
if/IN
as/RB
yet/RB
undefined/JJ
,/,
potentialities/NNS
inherent/JJ
in/IN
the/DT
souls/NNS
of/IN
all/PDT
our/PRP$
children/NNS
./.
It/PRP
is/VBZ
not/RB
surprising/JJ
that/IN
parents/NNS
find/VB
this/DT
romantic/JJ
extravagance/NN
so/RB
attractive/JJ
./.
Fortunately/RB
,/,
these/DT
same/JJ
parents/NNS
do/VBP
want/VB
their/PRP$
children/NNS
to/TO
get/VB
a/DT
decent/JJ
education/NN
as/RB
traditionally/RB
understood/VBN
,/,
and/CC
they/PRP
have/VBP
enough/RB
common/JJ
sense/NN
to/TO
know/VB
what/WP
that/IN
demands/VBZ
./.
Their/PRP$
commitment/NN
to/TO
``/``
creativity/NN
''/''
can/MD
not/RB
survive/VB
adolescent/JJ
illiteracy/NN
./.
American/JJ
education/NN
's/POS
future/NN
will/MD
be/VB
determined/VBN
by/IN
the/DT
degree/NN
to/TO
which/WDT
we/PRP
--/:
all/DT
of/IN
us/PRP
--/:
allow/VBP
this/DT
common/JJ
sense/NN
to/TO
prevail/VB
over/IN
the/DT
illusions/NNS
that/IN
we/PRP
also/RB
share/VBP
./.
The/DT
education/NN
establishment/NN
will/MD
fight/VB
against/IN
common/JJ
sense/NN
every/DT
inch/NN
of/IN
the/DT
way/NN
./.
The/DT
reasons/NNS
are/VBP
complex/JJ
,/,
but/CC
one/CD
simple/JJ
reason/NN
ought/MD
not/RB
to/TO
be/VB
underestimated/VBN
./.
``/``
Progressive/JJ
education/NN
''/''
(/(
as/IN
it/PRP
was/VBD
once/RB
called/VBN
)/)
is/VBZ
far/RB
more/RBR
interesting/JJ
and/CC
agreeable/JJ
to/TO
teachers/NNS
than/IN
is/VBZ
disciplined/VBN
instruction/NN
./.
It/PRP
is/VBZ
nice/JJ
for/IN
teachers/NNS
to/TO
think/VB
they/PRP
are/VBP
engaged/VBN
in/IN
``/``
personality/NN
development/NN
''/''
and/CC
even/RB
nicer/JJR
to/TO
minimize/VB
those/DT
irksome/JJ
tests/NNS
with/IN
often/RB
disappointing/JJ
results/NNS
./.
It/PRP
also/RB
provides/VBZ
teachers/NNS
with/IN
a/DT
superior/JJ
self-definition/NN
as/IN
a/DT
``/``
profession/NN
,/,
''/''
since/IN
they/PRP
will/MD
have/VB
passed/VBN
courses/NNS
in/IN
educational/JJ
psychology/NN
and/CC
educational/JJ
philosophy/NN
./.
I/PRP
myself/PRP
took/VBD
such/JJ
courses/NNS
in/IN
college/NN
,/,
thinking/VBG
I/PRP
might/MD
end/VB
up/IN
a/DT
schoolteacher/NN
./.
They/PRP
could/MD
all/RB
fairly/RB
be/VB
described/VBN
as/IN
``/``
pap/NN
''/''
courses/NNS
./.
But/CC
it/PRP
is/VBZ
unfair/JJ
to/TO
dump/VB
on/IN
teachers/NNS
,/,
as/IN
distinct/JJ
from/IN
the/DT
educational/JJ
establishment/NN
./.
I/PRP
know/VBP
many/JJ
schoolteachers/NNS
and/CC
,/,
on/IN
the/DT
whole/NN
,/,
they/PRP
are/VBP
seriously/RB
committed/VBN
to/TO
conscientious/JJ
teaching/NN
./.
They/PRP
may/MD
not/RB
be/VB
among/IN
the/DT
``/``
best/JJS
and/CC
brightest/JJS
''/''
of/IN
their/PRP$
generation/NN
--/:
there/EX
are/VBP
very/RB
few/JJ
such/JJ
people/NNS
,/,
by/IN
definition/NN
./.
But/CC
they/PRP
need/MD
not/RB
be/VB
to/TO
do/VB
their/PRP$
jobs/NNS
well/RB
./.
Yes/UH
,/,
we/PRP
all/DT
can/MD
remember/VB
one/CD
or/CC
two/CD
truly/RB
inspiring/JJ
teachers/NNS
from/IN
our/PRP$
school/NN
days/NNS
./.
But/CC
our/PRP$
education/NN
proceeded/VBD
at/IN
the/DT
hands/NNS
of/IN
those/DT
others/NNS
,/,
who/WP
were/VBD
merely/RB
competent/JJ
and/CC
conscientious/JJ
./.
In/IN
this/DT
sense/NN
,/,
a/DT
teacher/NN
can/MD
be/VB
compared/VBN
to/TO
one/NN
's/POS
family/NN
doctor/NN
./.
If/IN
he/PRP
were/VBD
brilliant/JJ
,/,
he/PRP
probably/RB
would/MD
not/RB
be/VB
a/DT
family/NN
doctor/NN
in/IN
the/DT
first/JJ
place/NN
./.
If/IN
he/PRP
is/VBZ
competent/JJ
and/CC
conscientious/JJ
,/,
he/PRP
serves/VBZ
us/PRP
well/RB
./.
Our/PRP$
teachers/NNS
are/VBP
not/RB
an/DT
important/JJ
factor/NN
in/IN
our/PRP$
educational/JJ
crisis/NN
./.
Whether/IN
they/PRP
are/VBP
or/CC
are/VBP
not/RB
underpaid/JJ
is/VBZ
a/DT
problem/NN
of/IN
equity/NN
;/:
it/PRP
is/VBZ
not/RB
an/DT
educational/JJ
problem/NN
./.
It/PRP
is/VBZ
silly/JJ
libel/NN
on/IN
our/PRP$
teachers/NNS
to/TO
think/VB
they/PRP
would/MD
educate/VB
our/PRP$
children/NNS
better/JJR
if/IN
only/RB
they/PRP
got/VBD
a/DT
few/JJ
thousand/CD
dollars/NNS
a/DT
year/NN
more/RBR
./.
It/PRP
is/VBZ
the/DT
kind/NN
of/IN
libel/NN
the/DT
teachers/NNS
'/POS
unions/NNS
do/VBP
n't/RB
mind/VB
spreading/VBG
,/,
for/IN
their/PRP$
own/JJ
narrow/JJ
purposes/NNS
./.
It/PRP
is/VBZ
also/RB
the/DT
kind/NN
of/IN
libel/NN
politicians/NNS
find/VBP
useful/JJ
,/,
since/IN
it/PRP
helps/VBZ
them/PRP
strike/VB
a/DT
friendly/JJ
posture/NN
on/IN
behalf/NN
of/IN
an/DT
important/JJ
constituency/NN
./.
But/CC
there/EX
is/VBZ
not/RB
one/CD
shred/NN
of/IN
evidence/NN
that/IN
,/,
other/JJ
things/NNS
being/VBG
equal/JJ
,/,
salary/NN
differentials/NNS
result/VBP
in/IN
educational/JJ
differentials/NNS
./.
If/IN
there/EX
were/VBD
such/JJ
evidence/NN
,/,
you/PRP
can/MD
be/VB
sure/JJ
you/PRP
would/MD
have/VB
heard/VBN
of/IN
it/PRP
./.
If/IN
we/PRP
wish/VBP
to/TO
be/VB
serious/JJ
about/IN
American/JJ
education/NN
,/,
we/PRP
know/VBP
exactly/RB
what/WP
to/TO
do/VB
--/:
and/CC
,/,
just/RB
as/IN
important/JJ
,/,
what/WP
not/RB
to/TO
do/VB
./.
There/EX
are/VBP
many/JJ
successful/JJ
schools/NNS
scattered/VBN
throughout/IN
this/DT
nation/NN
,/,
some/DT
of/IN
them/PRP
in/IN
the/DT
poorest/JJS
of/IN
ghettos/NNS
,/,
and/CC
they/PRP
are/VBP
all/DT
sending/VBG
us/PRP
the/DT
same/JJ
message/NN
./.
Conversely/RB
,/,
there/EX
are/VBP
the/DT
majority/NN
of/IN
unsuccessful/JJ
schools/NNS
,/,
and/CC
we/PRP
know/VBP
which/WDT
efforts/NNS
at/IN
educational/JJ
reform/NN
are/VBP
doomed/VBN
beforehand/RB
./.
We/PRP
really/RB
do/VBP
know/VB
all/DT
we/PRP
need/VBP
to/TO
know/VB
,/,
if/IN
only/RB
we/PRP
could/MD
assimilate/VB
this/DT
knowledge/NN
into/IN
our/PRP$
thinking/NN
./.
In/IN
this/DT
respect/NN
,/,
it/PRP
would/MD
be/VB
helpful/JJ
if/IN
our/PRP$
political/JJ
leaders/NNS
were/VBD
mute/JJ
,/,
rather/RB
than/IN
eloquently/RB
``/``
concerned/VBN
./.
''/''
They/PRP
are/VBP
inevitably/RB
inclined/VBN
to/TO
echo/VB
the/DT
conventional/JJ
pap/NN
,/,
since/IN
this/DT
is/VBZ
the/DT
least/JJS
controversial/JJ
option/NN
that/WDT
is/VBZ
open/JJ
to/TO
them/PRP
./.
Thus/RB
at/IN
the/DT
recent/JJ
governors/NNS
'/POS
conference/NN
on/IN
education/NN
,/,
Gov./NNP
Bill/NNP
Clinton/NNP
of/IN
Arkansas/NNP
announced/VBD
that/IN
``/``
this/DT
country/NN
needs/VBZ
a/DT
comprehensive/JJ
child-development/NN
policy/NN
for/IN
children/NNS
under/IN
five/CD
./.
''/''
A/DT
comprehensive/JJ
development/NN
policy/NN
for/IN
governors/NNS
over/IN
30/CD
would/MD
seem/VB
to/TO
be/VB
a/DT
more/RBR
pressing/JJ
need/NN
./.
What/WP
Gov./NNP
Clinton/NNP
is/VBZ
advocating/VBG
,/,
in/IN
effect/NN
,/,
is/VBZ
extending/VBG
the/DT
educational/JJ
system/NN
down/IN
to/TO
the/DT
pre-kindergarten/NN
years/NNS
./.
Whether/IN
desirable/JJ
or/CC
not/RB
,/,
this/DT
is/VBZ
a/DT
child-care/JJ
program/NN
,/,
not/RB
an/DT
educational/JJ
program/NN
./.
We/PRP
know/VBP
that/IN
very/RB
early/JJ
exposure/NN
to/TO
schooling/NN
improves/VBZ
performance/NN
in/IN
the/DT
first/JJ
grade/NN
,/,
but/CC
afterward/RB
the/DT
difference/NN
is/VBZ
quickly/RB
washed/VBN
away/RB
./.
Let/VB
us/PRP
sum/VB
up/IN
what/WP
we/PRP
do/VBP
know/VB
about/IN
education/NN
and/CC
about/IN
those/DT
education/NN
reforms/NNS
that/WDT
do/VBP
work/VB
and/CC
do/VBP
n't/RB
work/VB
:/:
--/:
``/``
Parental/JJ
involvement/NN
''/''
is/VBZ
a/DT
bad/JJ
idea/NN
./.
Parents/NNS
are/VBP
too/RB
likely/JJ
to/TO
blame/VB
schools/NNS
for/IN
the/DT
educational/JJ
limitations/NNS
of/IN
their/PRP$
children/NNS
./.
Parents/NNS
should/MD
be/VB
involved/VBN
with/IN
their/PRP$
children/NNS
's/POS
education/NN
at/IN
home/NN
,/,
not/RB
in/IN
school/NN
./.
They/PRP
should/MD
see/VB
to/TO
it/PRP
that/IN
their/PRP$
kids/NNS
do/VBP
n't/RB
play/VB
truant/JJ
;/:
they/PRP
should/MD
make/VB
certain/JJ
that/IN
the/DT
children/NNS
spend/VBP
enough/JJ
time/NN
doing/VBG
homework/NN
;/:
they/PRP
should/MD
scrutinize/VB
the/DT
report/NN
card/NN
./.
If/IN
parents/NNS
are/VBP
dissatisfied/VBN
with/IN
a/DT
school/NN
,/,
they/PRP
should/MD
have/VB
the/DT
option/NN
of/IN
switching/VBG
to/TO
another/DT
./.
--/:
``/``
Community/NN
involvement/NN
''/''
is/VBZ
an/DT
even/RB
worse/JJR
idea/NN
./.
Here/RB
,/,
the/DT
experience/NN
of/IN
New/NNP
York/NNP
City/NNP
is/VBZ
decisive/JJ
./.
Locally/RB
elected/VBN
school/NN
boards/NNS
,/,
especially/RB
in/IN
our/PRP$
larger/JJR
cities/NNS
,/,
become/VBP
the/DT
prey/NN
of/IN
ambitious/JJ
,/,
generally/RB
corrupt/JJ
,/,
and/CC
invariably/RB
demagogic/JJ
local/JJ
politicians/NNS
or/CC
would-be/JJ
politicians/NNS
./.
New/NNP
York/NNP
is/VBZ
in/IN
the/DT
process/NN
of/IN
trying/VBG
to/TO
disengage/VB
itself/PRP
from/IN
a/DT
20-year-old/JJ
commitment/NN
to/TO
this/DT
system/NN
of/IN
school/NN
governance/NN
,/,
even/RB
as/IN
Chicago/NNP
and/CC
other/JJ
cities/NNS
are/VBP
moving/VBG
to/TO
institute/VB
it/PRP
./.
--/:
In/IN
most/JJS
states/NNS
,/,
increasing/VBG
expenditures/NNS
on/IN
education/NN
,/,
in/IN
our/PRP$
current/JJ
circumstances/NNS
,/,
will/MD
probably/RB
make/VB
things/NNS
worse/JJR
,/,
not/RB
better/JJR
./.
The/DT
reason/NN
is/VBZ
simple/JJ
:/:
Education/NN
takes/VBZ
place/NN
in/IN
the/DT
classroom/NN
,/,
where/WRB
the/DT
influence/NN
of/IN
money/NN
is/VBZ
minimal/JJ
./.
Decades/NNS
of/IN
educational/JJ
research/NN
tell/VBP
us/PRP
unequivocally/RB
that/IN
even/RB
smaller/JJR
classes/NNS
have/VBP
zero/CD
effect/NN
on/IN
the/DT
academic/JJ
performance/NN
of/IN
the/DT
pupils/NNS
--/:
though/IN
they/PRP
may/MD
sometimes/RB
be/VB
desirable/JJ
for/IN
other/JJ
reasons/NNS
./.
The/DT
new/JJ
money/NN
flows/VBZ
into/IN
the/DT
already/RB
top-heavy/JJ
administrative/JJ
structure/NN
,/,
which/WDT
busies/NNS
itself/PRP
piling/VBG
more/JJR
and/CC
more/JJR
paper/NN
work/NN
on/IN
the/DT
teachers/NNS
./.
There/EX
is/VBZ
neither/DT
mystery/NN
nor/CC
paradox/NN
in/IN
the/DT
fact/NN
that/IN
as/IN
educational/JJ
expenditures/NNS
real/JJ
terms/NNS
the/DT
past/NN
quarter-of-a-century/JJ
--/:
we/PRP
now/RB
spend/VBP
more/RBR
per/IN
pupil/NN
than/IN
any/DT
other/JJ
country/NN
in/IN
the/DT
world/NN
--/:
educational/JJ
performance/NN
has/VBZ
declined/VBN
./.
That/DT
is/VBZ
the/DT
way/NN
the/DT
system/NN
works/VBZ
./.
--/:
Students/NNS
should/MD
move/VB
up/IN
the/DT
educational/JJ
ladder/NN
as/IN
their/PRP$
academic/JJ
potential/NN
allows/VBZ
./.
No/DT
student/NN
should/MD
be/VB
permitted/VBN
to/TO
be/VB
graduated/VBN
from/IN
elementary/JJ
school/NN
without/IN
having/VBG
mastered/VBN
the/DT
3/CD
R/NN
's/VBZ

at/IN
the/DT
level/NN
that/WDT
prevailed/VBD
20/CD
years/NNS
ago/IN
./.
This/DT
means/VBZ
``/``
tracking/NN
,/,
''/''
whose/WP$
main/JJ
purpose/NN
is/VBZ
less/JJR
to/TO
permit/VB
the/DT
gifted/JJ
youngsters/NNS
to/TO
flourish/VB
(/(
though/IN
that/DT
is/VBZ
clearly/RB
desirable/JJ
the/DT
less/RBR
gifted/JJ
get/VB
the/DT
necessary/JJ
grounding/NN
for/IN
further/JJ
study/NN
or/CC
for/IN
entering/VBG
the/DT
modern/JJ
world/NN
of/IN
work/NN
./.
The/DT
notion/NN
that/IN
tracking/NN
is/VBZ
somehow/RB
``/``
undemocratic/JJ
''/''
is/VBZ
absurd/JJ
./.
The/DT
purpose/NN
of/IN
education/NN
is/VBZ
to/TO
encourage/VB
young/JJ
men/NNS
and/CC
women/NNS
to/TO
realize/VB
their/PRP$
full/JJ
academic/JJ
potential/NN
./.
No/DT
one/CD
in/IN
his/PRP$
right/JJ
mind/NN
actually/RB
believes/VBZ
that/IN
we/PRP
all/DT
have/VBP
an/DT
equal/JJ
academic/JJ
potential/NN
./.
--/:
It/PRP
is/VBZ
generally/RB
desirable/JJ
to/TO
use/VB
older/JJR
textbooks/NNS
--/:
many/JJ
of/IN
them/PRP
,/,
alas/UH
,/,
out/IN
of/IN
print/NN
--/:
rather/RB
than/IN
newer/JJR
ones/NNS
./.
The/DT
latter/JJ
are/VBP
modish/JJ
,/,
trendy/JJ
,/,
often/RB
downright/JJ
silly/NN
,/,
and/CC
at/IN
best/JJS
insubstantial/JJ
./.
They/PRP
are/VBP
based/VBN
on/IN
dubious/JJ
psychological/JJ
and/CC
sociological/JJ
theories/NNS
rather/RB
than/IN
on/IN
educational/JJ
experience/NN
./.
One/CD
of/IN
the/DT
reasons/NNS
American/JJ
students/NNS
do/VBP
so/RB
poorly/RB
in/IN
math/NN
tests/NNS
,/,
as/IN
compared/VBN
with/IN
British/JJ
,/,
French/JJ
,/,
German/JJ
or/CC
Japanese/JJ
students/NNS
,/,
is/VBZ
the/DT
influence/NN
of/IN
the/DT
``/``
New/NNP
Math/NNP
''/''
on/IN
American/JJ
textbooks/NNS
and/CC
teaching/NN
methods/NNS
./.
Anyone/NN
who/WP
wants/VBZ
to/TO
appreciate/VB
just/RB
how/WRB
bizarre/JJ
this/DT
situation/NN
is/VBZ
--/:
with/IN
students/NNS
who/WP
ca/MD
n't/RB
add/VB
or/CC
subtract/VB
``/``
learning/VBG
''/''
the/DT
conceptual/JJ
basis/NN
of/IN
mathematical/JJ
theory/NN
--/:
should/MD
read/VB
the/DT
article/NN
by/IN
Caleb/NNP
Nelson/NNP
(/(
himself/PRP
a/DT
recent/JJ
math/NN
major/NN
at/IN
Harvard/NNP
the/DT
November/NNP
American/NNP
Spectator/NNP
./.
--/:
Most/RBS
important/JJ
of/IN
all/DT
,/,
schools/NNS
should/MD
have/VB
principals/NNS
with/IN
a/DT
large/JJ
measure/NN
of/IN
authority/NN
over/IN
the/DT
faculty/NN
,/,
the/DT
curriculum/NN
,/,
and/CC
all/DT
matters/NNS
of/IN
student/NN
discipline/NN
./.
Study/NN
after/IN
study/NN
--/:
the/DT
most/RBS
recent/JJ
from/IN
the/DT
Brookings/NNP
Institution/NNP
--/:
tells/VBZ
us/PRP
that/IN
the/DT
best/JJS
schools/NNS
are/VBP
those/DT
that/WDT
are/VBP
free/JJ
of/IN
outside/JJ
interference/NN
and/CC
are/VBP
governed/VBN
by/IN
a/DT
powerful/JJ
head/NN
./.
With/IN
that/DT
authority/NN
,/,
of/IN
course/NN
,/,
goes/VBZ
an/DT
unambiguous/JJ
accountability/NN
./.
Schools/NNS
that/WDT
are/VBP
structured/VBN
in/IN
this/DT
way/NN
produce/VBP
students/NNS
with/IN
higher/JJR
morale/NN
and/CC
superior/JJ
academic/JJ
performance/NN
./.
This/DT
is/VBZ
a/DT
fact/NN
--/:
though/IN
,/,
in/IN
view/NN
of/IN
all/PDT
the/DT
feathers/NNS
that/WDT
are/VBP
ruffled/VBN
by/IN
this/DT
fact/NN
,/,
it/PRP
is/VBZ
not/RB
surprising/JJ
that/IN
one/NN
hears/VBZ
so/RB
little/JJ
about/IN
it/PRP
./.
Mr./NNP
Kristol/NNP
,/,
an/DT
American/NNP
Enterprise/NNPS
Institute/NNP
fellow/NN
,/,
co-edits/VBZ
The/NNP
Public/NNP
Interest/NNP
and/CC
publishes/VBZ
The/NNP
National/NNP
Interest/NNP
./.
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
unveiled/VBD
a/DT
broad/JJ
strategy/NN
to/TO
tackle/VB
the/DT
biggest/JJS
problem/NN
that/IN
manufacturers/NNS
face/VBP
when/WRB
computerizing/VBG
their/PRP$
operations/NNS
:/:
Most/JJS
machines/NNS
ca/MD
n't/RB
talk/VB
to/TO
each/DT
other/JJ
./.
The/DT
company/NN
unveiled/VBD
more/JJR
than/IN
50/CD
products/NNS
,/,
mostly/RB
software/NN
,/,
that/WDT
are/VBP
designed/VBN
to/TO
integrate/VB
the/DT
three/CD
areas/NNS
of/IN
a/DT
manufacturing/NN
operation/NN
--/:
the/DT
plant/NN
floor/NN
,/,
design/NN
operations/NNS
and/CC
production/NN
planning/NN
./.
The/DT
aim/NN
,/,
ultimately/RB
,/,
is/VBZ
to/TO
increase/VB
the/DT
flow/NN
of/IN
information/NN
into/IN
a/DT
manufacturer/NN
's/POS
main/JJ
computer/NN
network/NN
for/IN
use/NN
in/IN
business/NN
planning/NN
,/,
marketing/NN
and/CC
other/JJ
operations/NNS
./.
Manufacturers/NNS
have/VBP
already/RB
spent/VBN
so/RB
heavily/RB
on/IN
automation/NN
that/IN
they/PRP
are/VBP
one/CD
of/IN
the/DT
computer/NN
industry/NN
's/POS
leading/VBG
revenue/NN
sources/NNS
./.
But/CC
many/JJ
manufacturers/NNS
find/VBP
that/DT
communication/NN
between/IN
different/JJ
computers/NNS
has/VBZ
been/VBN
rendered/VBN
nearly/RB
impossible/JJ
by/IN
the/DT
babel/NN
of/IN
computer/NN
languages/NNS
used/VBN
by/IN
different/JJ
machines/NNS
,/,
including/VBG
robots/NNS
and/CC
machine/NN
tools/NNS
./.
IBM/NNP
's/POS
announcement/NN
,/,
which/WDT
was/VBD
expected/VBN
and/CC
will/MD
formally/RB
be/VB
made/VBN
to/TO
customers/NNS
today/NN
,/,
also/RB
marks/VBZ
an/DT
attempt/NN
to/TO
gain/VB
credibility/NN
on/IN
the/DT
plant/NN
floor/NN
,/,
where/WRB
Digital/NNP
Equipment/NNP
Corp./NNP
has/VBZ
long/RB
dominated/VBN
and/CC
where/WRB
Hewlett-Packard/NNP
Co./NNP
has/VBZ
recently/RB
gained/VBN
market/NN
share/NN
./.
Consultants/NNS
have/VBP
said/VBN
that/IN
it/PRP
will/MD
take/VB
a/DT
while/NN
for/IN
all/PDT
the/DT
pieces/NNS
of/IN
the/DT
IBM/NNP
strategy/NN
to/TO
fall/VB
into/IN
place/NN
,/,
even/RB
though/IN
the/DT
specific/JJ
products/NNS
IBM/NNP
unveiled/VBD
will/MD
generally/RB
be/VB
available/JJ
by/IN
the/DT
end/NN
of/IN
the/DT
first/JJ
quarter/NN
./.
Sam/NNP
Albert/NNP
,/,
a/DT
consultant/NN
in/IN
Scarsdale/NNP
,/,
N.Y./NNP
,/,
said/VBD
that/IN
in/IN
the/DT
past/NN
IBM/NNP
has/VBZ
developed/VBN
broad/JJ
software/NN
strategies/NNS
only/RB
for/IN
problems/NNS
that/WDT
crossed/VBD
industry/NN
lines/NNS
./.
He/PRP
said/VBD
he/PRP
believes/VBZ
IBM/NNP
's/POS
decision/NN
to/TO
invest/VB
this/DT
sort/NN
of/IN
effort/NN
into/IN
a/DT
single/JJ
industry/NN
showed/VBD
that/IN
it/PRP
was/VBD
getting/VBG
serious/JJ
about/IN
understanding/VBG
customers/NNS
'/POS
problems/NNS
and/CC
was/VBD
n't/RB
just/RB
selling/VBG
technology/NN
./.
He/PRP
said/VBD
he/PRP
expects/VBZ
IBM/NNP
to/TO
unveil/VB
similar/JJ
strategies/NNS
for/IN
other/JJ
industries/NNS
in/IN
coming/VBG
months/NNS
./.
IBM/NNP
's/POS
push/NN
is/VBZ
also/RB
unusual/JJ
in/IN
its/PRP$
approach/NN
to/TO
marketing/NN
./.
Rather/RB
than/IN
just/RB
send/VB
out/IN
marketing/NN
people/NNS
to/TO
knock/VB
on/IN
customers/NNS
'/POS
doors/NNS
,/,
IBM/NNP
is/VBZ
making/VBG
several/JJ
hundred/CD
of/IN
its/PRP$
own/JJ
manufacturing/VBG
people/NNS
available/JJ
to/TO
discuss/VB
specific/JJ
needs/NNS
./.
IBM/NNP
's/POS
manufacturing/VBG
staff/NN
also/RB
will/MD
be/VB
able/JJ
to/TO
provide/VB
software/NN
that/IN
IBM/NNP
has/VBZ
developed/VBN
internally/RB
and/CC
will/MD
be/VB
able/JJ
to/TO
form/VB
teams/NNS
with/IN
a/DT
customer/NN
to/TO
jointly/RB
solve/VB
manufacturing/NN
problems/NNS
./.
IBM/NNP
can/MD
obviously/RB
bring/VB
its/PRP$
expertise/NN
to/TO
bear/VB
on/IN
problems/NNS
related/VBN
to/TO
computer/NN
manufacturing/NN
,/,
but/CC
it/PRP
could/MD
also/RB
help/VB
customers/NNS
on/IN
software/NN
to/TO
deal/VB
with/IN
such/JJ
things/NNS
as/IN
changes/NNS
in/IN
engineering/VBG
documents/NNS
./.
``/``
We/PRP
may/MD
not/RB
have/VB
every/DT
manufacturing/NN
problem/NN
,/,
but/CC
we/PRP
have/VBP
most/JJS
,/,
''/''
said/VBD
George/NNP
Conrades/NNP
,/,
IBM/NNP
's/POS
top/JJ
marketing/NN
official/NN
./.
Japan/NNP
's/POS
Big/NNP
Four/NNP
securities/NNS
firms/NNS
posted/VBD
first-half/JJ
unconsolidated/VBN
results/NNS
that/WDT
mirrored/VBD
softer/JJR
performance/NN
as/IN
a/DT
result/NN
of/IN
slower/JJR
turnover/NN
on/IN
the/DT
Tokyo/NNP
Stock/NNP
Exchange/NNP
during/IN
July/NNP
and/CC
August/NNP
./.
Figures/NNS
for/IN
the/DT
period/NN
ended/VBD
Sept./NNP
30/CD
for/IN
the/DT
four/CD
largest/JJS
brokerage/NN
firms/NNS
--/:
Nomura/NNP
Securities/NNPS
Co./NNP
,/,
Daiwa/NNP
Securities/NNPS
Co./NNP
,/,
Yamaichi/NNP
Securities/NNPS
Co./NNP
and/CC
Nikko/NNP
Securities/NNPS
--/:
also/RB
reflected/VBD
a/DT
changeover/NN
to/TO
a/DT
fiscal/JJ
year/NN
ending/VBG
March/NNP
31/CD
,/,
replacing/VBG
the/DT
12-month/JJ
term/NN
formerly/RB
finishing/VBG
Sept./NNP
30/CD
./.
As/IN
a/DT
result/NN
,/,
brokerage/NN
house/NN
officials/NNS
said/VBD
,/,
appropriate/JJ
comparisons/NNS
from/IN
the/DT
same/JJ
period/NN
a/DT
year/NN
earlier/RBR
were/VBD
unavailable/JJ
./.
Operating/VBG
profit/NN
,/,
pretax/NN
profit/NN
and/CC
net/JJ
income/NN
results/NNS
,/,
however/RB
,/,
were/VBD
provided/VBN
for/IN
the/DT
immediately/RB
preceding/VBG
six-month/JJ
period/NN
./.
The/DT
statistics/NNS
follow/VBP
a/DT
year-on-year/JJ
rebound/NN
in/IN
consolidated/VBN
and/CC
unconsolidated/VBN
results/NNS
in/IN
the/DT
full/JJ
fiscal/JJ
year/NN
ended/VBD
in/IN
March/NNP
1989/CD
,/,
recovering/VBG
from/IN
dismal/JJ
results/NNS
in/IN
the/DT
prior/JJ
fiscal/JJ
year/NN
as/IN
a/DT
result/NN
of/IN
the/DT
October/NNP
1987/CD
stock/NN
market/NN
crash/NN
./.
Nomura/NNP
said/VBD
its/PRP$
pretax/NN
profits/NNS
inched/VBD
up/IN
0.9/CD
%/NN
to/TO
248.91/CD
billion/CD
yen/NN
US$/$
1.75/CD
billion/CD
246.60/CD
billion/CD
yen/NN
in/IN
the/DT
six/CD
months/NNS
ended/VBD
March/NNP
31/CD
./.
Total/JJ
operating/VBG
profit/NN
fell/VBD
3.1/CD
%/NN
to/TO
486.1/CD
billion/CD
yen/NN
from/IN
501.61/CD
billion/CD
yen/NN
./.
Net/JJ
income/NN
,/,
however/RB
,/,
rose/VBD
3.7/CD
%/NN
to/TO
107.87/CD
billion/CD
yen/NN
from/IN
103.98/CD
billion/CD
yen/NN
./.
Per-share/JJ
net/NN
rose/VBD
to/TO
55.10/CD
yen/NN
from/IN
54.51/CD
yen/NN
./.
Daiwa/NNP
said/VBD
its/PRP$
pretax/NN
profits/NNS
surged/VBD
9.6/CD
%/NN
to/TO
171.04/CD
billion/CD
yen/NN
from/IN
156.12/CD
billion/CD
yen/NN
in/IN
the/DT
preceding/VBG
six-month/JJ
term/NN
./.
Operating/VBG
profit/NN
rose/VBD
5.5/CD
%/NN
to/TO
332.38/CD
billion/CD
yen/NN
from/IN
315.12/CD
billion/CD
yen/NN
./.
Net/JJ
income/NN
jumped/VBD
21/CD
%/NN
to/TO
79.03/CD
billion/CD
yen/NN
from/IN
65.53/CD
billion/CD
yen/NN
./.
Per-share/JJ
net/NN
rose/VBD
to/TO
62.04/CD
yen/NN
from/IN
51.50/CD
yen/NN
./.
Yamaichi/NNP
said/VBD
its/PRP$
pretax/NN
profit/NN
increased/VBD
8.9/CD
%/NN
to/TO
117.94/CD
billion/CD
yen/NN
from/IN
108.28/CD
billion/CD
yen/NN
./.
Operating/VBG
profit/NN
rose/VBD
5.3/CD
%/NN
to/TO
279.75/CD
billion/CD
yen/NN
from/IN
265.79/CD
billion/CD
yen/NN
./.
Net/JJ
income/NN
surged/VBD
21/CD
%/NN
to/TO
55.59/CD
billion/CD
yen/NN
from/IN
46.02/CD
billion/CD
yen/NN
./.
Per-share/JJ
net/NN
rose/VBD
to/TO
47.46/CD
yen/NN
from/IN
39.31/CD
yen/NN
./.
Nikko/NNP
's/POS
pretax/NN
profit/NN
rose/VBD
1.6/CD
%/NN
to/TO
130.25/CD
billion/CD
yen/NN
from/IN
128.19/CD
billion/CD
yen/NN
./.
Operating/VBG
profit/NN
rose/VBD
4/CD
%/NN
to/TO
293.29/CD
billion/CD
yen/NN
from/IN
282.08/CD
billion/CD
yen/NN
./.
Net/JJ
income/NN
rose/VBD
23/CD
%/NN
to/TO
63.52/CD
billion/CD
yen/NN
from/IN
51.65/CD
billion/CD
yen/NN
./.
Per-share/JJ
net/NN
rose/VBD
to/TO
44.08/CD
yen/NN
from/IN
36.13/CD
yen/NN
./.
Harken/NNP
Energy/NNP
Corp./NNP
of/IN
Dallas/NNP
said/VBD
it/PRP
will/MD
drop/VB
its/PRP$
$/$
11.75-a-share/JJ
,/,
or/CC
$/$
190/CD
million/CD
,/,
offer/NN
for/IN
Tesoro/NNP
Petroleum/NNP
Corp./NNP
if/IN
the/DT
two/CD
companies/NNS
do/VBP
n't/RB
have/VB
an/DT
agreement/NN
to/TO
merge/VB
by/IN
Dec./NNP
15/CD
./.
Harken/NNP
,/,
which/WDT
made/VBD
its/PRP$
offer/NN
in/IN
August/NNP
,/,
said/VBD
it/PRP
still/RB
is/VBZ
awaiting/VBG
a/DT
response/NN
to/TO
its/PRP$
offer/NN
from/IN
Tesoro/NNP
's/POS
board/NN
./.
Harken/NNP
also/RB
said/VBD
that/DT
its/PRP$
financing/NN
from/IN
Bankers/NNPS
Trust/NNP
Co./NNP
has/VBZ
been/VBN
extended/VBN
until/IN
Dec./NNP
15/CD
to/TO
give/VB
Tesoro/NNP
's/POS
board/NN
time/NN
to/TO
consider/VB
the/DT
offer/NN
at/IN
a/DT
Tesoro/NNP
board/NN
meeting/NN
scheduled/VBN
for/IN
mid-November/NNP
./.
Harken/NNP
,/,
which/WDT
owns/VBZ
about/IN
800/CD
retail/NN
gas/NN
stations/NNS
,/,
has/VBZ
said/VBN
it/PRP
is/VBZ
particularly/RB
interested/JJ
in/IN
Tesoro/NNP
's/POS
refinery/NN
because/IN
it/PRP
would/MD
fill/VB
a/DT
gap/NN
in/IN
its/PRP$
business/NN
./.
However/RB
,/,
Tesoro/NNP
,/,
based/VBN
in/IN
Houston/NNP
,/,
already/RB
has/VBZ
rejected/VBN
a/DT
suitor/NN
in/IN
the/DT
past/NN
year/NN
./.
Francis/NNP
D./NNP
John/NNP
,/,
35-year-old/JJ
president/NN
,/,
will/MD
assume/VB
the/DT
additional/JJ
job/NN
of/IN
chief/NN
executive/NN
officer/NN
./.
He/PRP
succeeds/VBZ
Paul/NNP
J./NNP
Montle/NNP
,/,
42/CD
,/,
who/WP
will/MD
remain/VB
chairman/NN
./.
National/NNP
Environmental/NNP
also/RB
said/VBD
it/PRP
will/MD
move/VB
its/PRP$
headquarters/NN
from/IN
Hingham/NNP
to/TO
Folcroft/NNP
,/,
Pa./NNP
,/,
the/DT
site/NN
of/IN
its/PRP$
sludge/NN
dewatering/VBG
facility/NN
./.
National/NNP
Environmental/NNP
,/,
formerly/RB
Yankee/NNP
Cos./NNP
,/,
is/VBZ
a/DT
sludge/NN
treatment/NN
company/NN
./.
Eagle/NNP
Clothes/NNPS
Inc./NNP
,/,
which/WDT
is/VBZ
operating/VBG
under/IN
Chapter/NN
11/CD
of/IN
the/DT
federal/JJ
Bankruptcy/NNP
Code/NNP
,/,
said/VBD
it/PRP
reached/VBD
an/DT
agreement/NN
with/IN
its/PRP$
creditors/NNS
./.
Under/IN
the/DT
accord/NN
,/,
Albert/NNP
Roth/NNP
,/,
chairman/NN
and/CC
chief/NN
executive/NN
officer/NN
,/,
and/CC
Arthur/NNP
Chase/NNP
,/,
Sam/NNP
Beigel/NNP
,/,
and/CC
Louis/NNP
Polsky/NNP
will/MD
resign/VB
as/IN
officers/NNS
and/CC
directors/NNS
of/IN
the/DT
menswear/NN
retailer/NN
./.
Mr./NNP
Roth/NNP
,/,
who/WP
has/VBZ
been/VBN
on/IN
leave/NN
from/IN
his/PRP$
posts/NNS
,/,
will/MD
be/VB
succeeded/VBN
by/IN
Geoffrie/NNP
D./NNP
Lurie/NNP
of/IN
GDL/NNP
Management/NNP
Inc./NNP
,/,
which/WDT
is/VBZ
Eagle/NNP
's/POS
crisis/NN
manager/NN
./.
Mr./NNP
Lurie/NNP
is/VBZ
currently/RB
co-chief/NN
executive/NN
./.
Arnold/NNP
Levine/NNP
,/,
acting/VBG
co-chief/NN
executive/NN
,/,
will/MD
continue/VB
as/RB
senior/JJ
vice/NN
president/NN
and/CC
a/DT
board/NN
member/NN
./.
Eagle/NNP
also/RB
said/VBD
it/PRP
received/VBD
a/DT
commitment/NN
for/IN
as/RB
much/JJ
as/IN
$/$
8/CD
million/CD
in/IN
financing/NN
from/IN
Norfolk/NNP
Capital/NNP
Group/NNP
Inc/NNP
./.
In/IN
addition/NN
,/,
a/DT
Norfolk/NNP
affiliate/NN
,/,
York/NNP
Capital/NNP
Inc./NNP
,/,
will/MD
purchase/VB
all/DT
of/IN
the/DT
interests/NNS
of/IN
Eagle/NNP
's/POS
secured/VBN
lenders/NNS
,/,
which/WDT
total/VBP
$/$
11.5/CD
million/CD
,/,
and/CC
guarantee/VBP
as/RB
much/RB
as/IN
$/$
8.2/CD
million/CD
in/IN
payments/NNS
to/TO
Eagle/NNP
's/POS
unsecured/JJ
creditors/NNS
./.
A/DT
committee/NN
representing/VBG
the/DT
unsecured/JJ
creditors/NNS
agreed/VBD
to/TO
accept/VB
24/CD
cents/NNS
on/IN
the/DT
dollar/NN
,/,
Eagle/NNP
said/VBD
./.
The/DT
plan/NN
would/MD
extend/VB
the/DT
period/NN
under/IN
which/WDT
Eagle/NNP
has/VBZ
the/DT
exclusive/JJ
right/NN
to/TO
file/VB
a/DT
reorganization/NN
plan/NN
./.
It/PRP
would/MD
extinguish/VB
all/DT
of/IN
Eagle/NNP
's/POS
existing/VBG
capital/NN
stock/NN
and/CC
issue/VB
new/JJ
stock/NN
to/TO
York/NNP
as/IN
sole/JJ
holder/NN
./.
A/DT
bankruptcy/NN
court/NN
hearing/NN
is/VBZ
set/VBN
for/IN
Nov./NNP
3/CD
on/IN
these/DT
accords/NNS
./.
In/IN
its/PRP$
bankruptcy-law/NN
petition/NN
,/,
filed/VBN
in/IN
U.S./NNP
Bankruptcy/NNP
Court/NNP
in/IN
Manhattan/NNP
,/,
Eagle/NNP
said/VBD
its/PRP$
problems/NNS
began/VBD
in/IN
1987/CD
and/CC
early/RB
1988/CD
when/WRB
its/PRP$
then-senior/JJ
lender/NN
,/,
Bankers/NNPS
Trust/NNP
Co./NNP
,/,
reduced/VBD
its/PRP$
credit/NN
line/NN
./.
In/IN
September/NNP
1988/CD
,/,
Eagle/NNP
acquired/VBD
Biny/NNP
Clothing/NNP
Inc./NNP
,/,
a/DT
closely/RB
held/VBN
New/NNP
York/NNP
chain/NN
operated/VBN
under/IN
the/DT
Bonds/NNP
name/NN
./.
Eagle/NNP
's/POS
management/NN
retired/VBD
and/CC
Biny/NNP
's/POS
management/NN
took/VBD
control/NN
of/IN
the/DT
company/NN
./.
At/IN
the/DT
time/NN
,/,
Eagle/NNP
reached/VBD
a/DT
new/JJ
credit/NN
agreement/NN
with/IN
Bankers/NNPS
Trust/NNP
and/CC
with/IN
Bank/NNP
Leumi/NNP
Trust/NNP
Co./NNP
of/IN
New/NNP
York/NNP
for/IN
$/$
8/CD
million/CD
,/,
and/CC
a/DT
new/JJ
subordinated/VBN
debt/NN
accord/NN
with/IN
First/NNP
Century/NNP
Partners/NNPS
and/CC
Biny/NNP
management/NN
for/IN
$/$
2/CD
million/CD
./.
But/CC
Eagle/NNP
said/VBD
the/DT
financing/NN
was/VBD
insufficient/JJ
and/CC
sales/NNS
during/IN
the/DT
past/JJ
fiscal/JJ
year/NN
sagged/VBD
./.
Under/IN
Chapter/NN
11/CD
,/,
a/DT
company/NN
operates/VBZ
under/IN
protection/NN
from/IN
creditors/NNS
'/POS
lawsuits/NNS
while/IN
it/PRP
works/VBZ
out/IN
a/DT
plan/NN
to/TO
pay/VB
debts/NNS
./.
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NNP
said/VBD
it/PRP
would/MD
add/VB
John/NNP
H./NNP
Harland/NNP
Co./NNP
,/,
an/DT
Atlanta/NNP
check/NN
printer/NN
,/,
to/TO
its/PRP$
500-stock/JJ
index/NN
,/,
effective/JJ
at/IN
the/DT
close/NN
of/IN
trading/VBG
on/IN
Wednesday/NNP
./.
American/NNP
Medical/NNP
International/NNP
Inc./NNP
,/,
a/DT
New/NNP
York/NNP
hospital/NN
operator/NN
,/,
will/MD
be/VB
deleted/VBN
from/IN
the/DT
index/NN
at/IN
that/DT
time/NN
./.
American/NNP
Medical/NNP
is/VBZ
being/VBG
acquired/VBN
./.
The/DT
tougher/JJR
new/JJ
regulations/NNS
under/IN
the/DT
savings-and-loan/JJ
bailout/NN
law/NN
are/VBP
accelerating/VBG
the/DT
thrift/NN
industry/NN
's/POS
shrinking/VBG
act/NN
./.
Largely/RB
to/TO
meet/VB
tougher/JJR
new/JJ
capital/NN
requirements/NNS
,/,
thrifts/NNS
reduced/VBD
their/PRP$
assets/NNS
$/$
13.4/CD
billion/CD
in/IN
August/NNP
,/,
by/IN
selling/VBG
such/JJ
assets/NNS
as/IN
mortgage-backed/JJ
securities/NNS
and/CC
loans/NNS
./.
Industry/NN
assets/NNS
as/IN
of/IN
Aug./NNP
31/CD
were/VBD
$/$
1.31/CD
trillion/CD
,/,
the/DT
lowest/JJS
since/IN
August/NNP
1988/CD
./.
As/IN
thrifts/NNS
sell/VBP
assets/NNS
to/TO
improve/VB
their/PRP$
capital-to-asset/NN
ratio/NN
,/,
as/IN
required/VBN
under/IN
the/DT
new/JJ
law/NN
passed/VBN
in/IN
August/NNP
,/,
they/PRP
must/MD
also/RB
reduce/VB
liabilities/NNS
,/,
such/JJ
as/IN
deposits/NNS
./.
As/IN
interest/NN
rates/NNS
paid/VBD
depositors/NNS
were/VBD
lowered/VBN
,/,
thrift/NN
withdrawals/NNS
exceeded/VBD
deposits/NNS
by/IN
$/$
5.1/CD
billion/CD
,/,
not/RB
including/VBG
interest/NN
credited/VBN
to/TO
accounts/NNS
./.
It/PRP
was/VBD
the/DT
third/JJ
consecutive/JJ
month/NN
in/IN
which/WDT
thrifts/NNS
shed/VBP
assets/NNS
to/TO
increase/VB
the/DT
size/NN
of/IN
their/PRP$
capital/NN
in/IN
relation/NN
to/TO
their/PRP$
assets/NNS
,/,
the/DT
Office/NNP
of/IN
Thrift/NNP
Supervision/NNP
said/VBD
./.
The/DT
asset/NN
shrinkage/NN
was/VBD
particularly/RB
concentrated/VBN
in/IN
several/JJ
large/JJ
California/NNP
institutions/NNS
./.
``/``
The/DT
downsizing/VBG
of/IN
the/DT
thrift/NN
industry/NN
is/VBZ
well/RB
under/IN
way/NN
,/,
''/''
said/VBD
Bert/NNP
Ely/NNP
,/,
an/DT
industry/NN
consultant/NN
in/IN
Alexandria/NNP
,/,
Va/NNP
./.
``/``
This/DT
suggests/VBZ
the/DT
bailout/NN
law/NN
is/VBZ
having/VBG
a/DT
more/RBR
dramatic/JJ
effect/NN
than/IN
anyone/NN
would/MD
have/VB
imagined/VBN
so/RB
soon/RB
./.
''/''
James/NNP
Barth/NNP
,/,
an/DT
economist/NN
with/IN
the/DT
Office/NNP
of/IN
Thrift/NNP
Supervision/NNP
,/,
also/RB
attributed/VBD
some/DT
of/IN
the/DT
outflow/NN
to/TO
seasonal/JJ
factors/NNS
./.
``/``
August/NNP
is/VBZ
a/DT
month/NN
when/WRB
people/NNS
are/VBP
paying/VBG
school/NN
tuition/NN
,/,
''/''
he/PRP
said/VBD
./.
``/``
That/IN
and/CC
adjustment/NN
to/TO
the/DT
new/JJ
law/NN
were/VBD
the/DT
biggest/JJS
factors/NNS
in/IN
the/DT
industry/NN
./.
''/''
Not/RB
including/VBG
thrifts/NNS
under/IN
government/NN
conservatorship/NN
,/,
S&Ls/NNP
reduced/VBD
their/PRP$
assets/NNS
by/IN
$/$
10.1/CD
billion/CD
from/IN
the/DT
previous/JJ
month/NN
,/,
and/CC
deposit/NN
outflows/NNS
totaled/VBD
$/$
3.9/CD
billion/CD
./.
For/IN
the/DT
264/CD
insolvent/JJ
thrifts/NNS
under/IN
government/NN
management/NN
at/IN
the/DT
end/NN
of/IN
August/NNP
,/,
assets/NNS
declined/VBD
by/IN
$/$
3.3/CD
billion/CD
and/CC
withdrawals/NNS
exceeded/VBD
deposits/NNS
by/IN
$/$
1.2/CD
billion/CD
./.
Thrifts/NNS
raised/VBD
capital/NN
mostly/RB
by/IN
selling/VBG
mortgages/NNS
and/CC
mortgage-backed/JJ
securities/NNS
,/,
which/WDT
were/VBD
reduced/VBN
by/IN
$/$
7.8/CD
billion/CD
in/IN
August/NNP
from/IN
the/DT
prior/JJ
month/NN
./.
As/IN
of/IN
Aug./NNP
31/CD
,/,
thrifts/NNS
held/VBD
$/$
185/CD
billion/CD
in/IN
mortgage-backed/JJ
securities/NNS
./.
The/DT
deposit/NN
numbers/NNS
for/IN
August/NNP
marked/VBD
a/DT
swing/NN
back/RB
to/TO
huge/JJ
outflows/NNS
after/IN
a/DT
July/NNP
net/NN
deposit/NN
inflow/NN
of/IN
$/$
54/CD
million/CD
--/:
the/DT
only/RB
net/JJ
inflow/NN
in/IN
more/JJR
than/IN
a/DT
year/NN
./.
Deposits/NNS
are/VBP
n't/RB
expected/VBN
to/TO
exceed/VB
withdrawals/NNS
in/IN
the/DT
foreseeable/JJ
future/NN
,/,
as/IN
the/DT
industry/NN
continues/VBZ
to/TO
shrink/VB
./.
``/``
I/PRP
think/VBP
we/PRP
are/VBP
going/VBG
to/TO
see/VB
deposit/NN
shrinkage/NN
continue/VB
,/,
unless/IN
we/PRP
see/VBP
big/JJ
changes/NNS
in/IN
rates/NNS
,/,
''/''
Mr./NNP
Ely/NNP
said/VBD
./.
For/IN
the/DT
first/JJ
eight/CD
months/NNS
of/IN
1989/CD
,/,
thrifts/NNS
'/POS
withdrawals/NNS
exceeded/VBD
deposits/NNS
by/IN
$/$
44.5/CD
billion/CD
./.
For/IN
the/DT
prior/JJ
year/NN
,/,
deposits/NNS
exceeded/VBD
withdrawals/NNS
by/IN
$/$
8.8/CD
billion/CD
./.
The/DT
estimates/NNS
of/IN
real/JJ
gross/JJ
national/JJ
product/NN
prepared/VBN
by/IN
the/DT
Bureau/NNP
of/IN
Economic/NNP
Analysis/NNP
in/IN
the/DT
Department/NNP
of/IN
Commerce/NNP
significantly/RB
understate/VBP
the/DT
rate/NN
of/IN
economic/JJ
growth/NN
./.
Since/IN
the/DT
bureau/NN
's/POS
estimates/NNS
for/IN
the/DT
business/NN
sector/NN
provide/VBP
the/DT
numerator/NN
for/IN
the/DT
productivity/NN
ratios/NNS
calculated/VBN
by/IN
the/DT
Department/NNP
of/IN
Labor/NNP
,/,
underestimated/VBN
growth/NN
rates/NNS
artificially/RB
depress/VBP
official/JJ
productivity/NN
statistics/NNS
./.
If/IN
this/DT
thesis/NN
is/VBZ
correct/JJ
,/,
it/PRP
has/VBZ
important/JJ
implications/NNS
for/IN
macroeconomic/JJ
policies/NNS
:/:
It/PRP
may/MD
lower/VB
the/DT
sense/NN
of/IN
urgency/NN
behind/IN
efforts/NNS
to/TO
enact/VB
tax/NN
incentives/NNS
and/CC
other/JJ
measures/NNS
to/TO
increase/VB
the/DT
rate/NN
of/IN
growth/NN
in/IN
productivity/NN
and/CC
real/JJ
GNP/NNP
./.
It/PRP
would/MD
also/RB
affect/VB
the/DT
perceptions/NNS
of/IN
the/DT
board/NN
of/IN
governors/NNS
of/IN
the/DT
Federal/NNP
Reserve/NNP
System/NNP
,/,
and/CC
the/DT
informed/VBN
public/NN
generally/RB
,/,
as/IN
to/TO
what/WP
constitutes/VBZ
a/DT
reasonable/JJ
degree/NN
of/IN
price/NN
stability/NN
./.
In/IN
the/DT
early/JJ
1980s/CD
,/,
I/PRP
predicted/VBD
a/DT
significant/JJ
acceleration/NN
in/IN
productivity/NN
growth/NN
over/IN
the/DT
rest/NN
of/IN
the/DT
decade/NN
./.
This/DT
forecast/NN
was/VBD
based/VBN
on/IN
the/DT
apparent/JJ
reversal/NN
of/IN
most/JJS
of/IN
the/DT
negative/JJ
forces/NNS
--/:
such/JJ
as/IN
demographic/JJ
changes/NNS
,/,
the/DT
oil/NN
shock/NN
and/CC
accelerating/VBG
inflation/NN
--/:
that/WDT
had/VBD
reduced/VBN
productivity/NN
gains/NNS
in/IN
the/DT
1970s/CD
./.
There/EX
has/VBZ
indeed/RB
been/VBN
more/JJR
than/IN
a/DT
one/CD
percentage/NN
point/NN
improvement/NN
in/IN
productivity/NN
growth/NN
since/IN
1981/CD
./.
But/CC
I/PRP
had/VBD
expected/VBN
more/RBR
,/,
which/WDT
is/VBZ
one/CD
reason/NN
I/PRP
began/VBD
looking/VBG
at/IN
evidence/NN
suggesting/VBG
defects/NNS
in/IN
the/DT
official/JJ
output/NN
estimates/NNS
./.
The/DT
evidence/NN
does/VBZ
not/RB
clearly/RB
support/VB
the/DT
view/NN
that/IN
the/DT
downward/JJ
bias/NN
in/IN
output/NN
growth/NN
has/VBZ
become/VBN
greater/JJR
during/IN
the/DT
1948-89/CD
period/NN
,/,
but/CC
all/DT
I/PRP
am/VBP
claiming/VBG
is/VBZ
that/IN
the/DT
growth/NN
trend/NN
is/VBZ
understated/VBN
./.
It/PRP
is/VBZ
,/,
however/RB
,/,
possible/JJ
,/,
that/IN
further/JJ
study/NN
will/MD
reveal/VB
increasing/VBG
bias/NN
./.
This/DT
bias/NN
is/VBZ
in/IN
no/DT
way/NN
deliberate/JJ
./.
The/DT
understatement/NN
of/IN
growth/NN
is/VBZ
due/JJ
largely/RB
to/TO
the/DT
conservative/JJ
expedients/NNS
adopted/VBN
to/TO
deal/VB
with/IN
deficiencies/NNS
in/IN
basic/JJ
economic/JJ
data/NNS
./.
The/DT
first/JJ
of/IN
three/CD
major/JJ
sources/NNS
of/IN
error/NN
is/VBZ
the/DT
use/NN
of/IN
labor/NN
input/NN
estimates/NNS
employment/NN
or/CC
hours/NNS
output/NN
estimates/NNS
for/IN
those/DT
sectors/NNS
,/,
such/JJ
as/IN
governments/NNS
,/,
paid/VBN
household/NN
services/NNS
and/CC
private/JJ
non-profit/JJ
institutions/NNS
,/,
where/WRB
there/EX
are/VBP
difficulties/NNS
in/IN
assembling/VBG
output/NN
data/NNS
./.
This/DT
means/VBZ
that/IN
no/DT
allowance/NN
is/VBZ
made/VBN
for/IN
possible/JJ
increases/NNS
in/IN
output/NN
per/IN
unit/NN
of/IN
labor/NN
./.
In/IN
an/DT
unrelated/JJ
program/NN
in/IN
which/WDT
the/DT
Labor/NNP
Department/NNP
does/VBZ
estimate/VB
output/NN
per/IN
employee/NN
for/IN
more/JJR
than/IN
two-thirds/NNS
of/IN
federal/JJ
civilian/JJ
employees/NNS
,/,
it/PRP
found/VBD
an/DT
average/JJ
annual/JJ
rate/NN
of/IN
productivity/NN
improvement/NN
of/IN
1.7/CD
%/NN
during/IN
the/DT
1980s/CD
./.
Even/RB
if/IN
it/PRP
is/VBZ
assumed/VBN
that/IN
productivity/NN
rose/VBD
no/RB
more/RBR
than/IN
half/DT
as/RB
quickly/RB
in/IN
the/DT
rest/NN
of/IN
the/DT
nonbusiness/NN
sector/NN
,/,
this/DT
Labor/NNP
Department/NNP
estimate/NN
indicates/VBZ
a/DT
downward/JJ
bias/NN
in/IN
the/DT
real/JJ
GNP/NNP
estimates/NNS
of/IN
0.2/CD
percentage/NN
point/NN
a/DT
year/NN
,/,
on/IN
average/NN
./.
The/DT
federal/JJ
productivity/NN
estimators/NNS
use/VBP
labor/NN
input/NN
,/,
rather/RB
than/IN
output/NN
,/,
data/NNS
for/IN
their/PRP$
calculations/NNS
of/IN
half/DT
of/IN
private/JJ
financial/JJ
and/CC
service/NN
industries/NNS
as/RB
well/RB
./.
Independent/JJ
estimates/NNS
of/IN
output/NN
in/IN
those/DT
industries/NNS
,/,
including/VBG
one/CD
by/IN
the/DT
Department/NNP
of/IN
Labor/NNP
for/IN
banking/NN
,/,
suggests/VBZ
that/DT
productivity/NN
in/IN
finance/NN
and/CC
services/NNS
appears/VBZ
to/TO
have/VB
risen/VBN
by/IN
an/DT
average/NN
of/IN
at/IN
least/JJS
1.5/CD
%/NN
a/DT
year/NN
between/IN
1948/CD
and/CC
1988/CD
./.
Because/IN
finance/NN
and/CC
services/NNS
contribute/VBP
10/CD
%/NN
to/TO
final/JJ
business/NN
product/NN
,/,
missing/VBG
these/DT
productivity/NN
improvements/NNS
depresses/VBZ
the/DT
overall/JJ
growth/NN
rate/NN
by/IN
0.15/CD
%/NN
a/DT
year/NN
./.
The/DT
second/JJ
source/NN
of/IN
error/NN
in/IN
growth/NN
statistics/NNS
is/VBZ
the/DT
use/NN
of/IN
inappropriate/JJ
deflators/NNS
to/TO
adjust/VB
for/IN
price/NN
changes/NNS
./.
I/PRP
estimate/VBP
that/IN
these/DT
mismeasurements/NNS
as/IN
detailed/VBN
by/IN
Martin/NNP
N./NNP
Baily/NNP
and/CC
Robert/NNP
J./NNP
Gordon/NNP
add/VB
a/DT
further/JJ
0.12/CD
percentage/NN
point/NN
to/TO
the/DT
downward/JJ
bias/NN
in/IN
the/DT
growth/NN
rate/NN
of/IN
real/JJ
business/NN
product/NN
./.
Finally/RB
,/,
the/DT
official/JJ
estimates/NNS
understate/VBP
growth/NN
because/IN
they/PRP
make/VBP
inadequate/JJ
allowance/NN
for/IN
improvements/NNS
in/IN
quality/NN
of/IN
goods/NNS
and/CC
services/NNS
./.
In/IN
1985/CD
,/,
a/DT
new/JJ
price/NN
index/NN
for/IN
computers/NNS
adjusted/VBN
for/IN
changes/NNS
in/IN
performance/NN
characteristics/NNS
was/VBD
introduced/VBN
,/,
and/CC
that/WDT
resulted/VBD
in/IN
a/DT
significantly/RB
larger/JJR
increase/NN
in/IN
real/JJ
outlays/NNS
for/IN
durable/JJ
goods/NNS
than/IN
the/DT
earlier/JJR
estimates/NNS
had/VBD
showed/VBN
./.
Since/IN
then/RB
,/,
further/JJ
research/NN
argues/VBZ
that/DT
failure/NN
to/TO
take/VB
account/NN
of/IN
quality/NN
improvements/NNS
has/VBZ
contributed/VBN
a/DT
total/NN
of/IN
at/IN
least/JJS
0.26/CD
percentage/NN
point/NN
to/TO
the/DT
downward/JJ
bias/NN
in/IN
the/DT
growth/NN
rate/NN
./.
In/IN
sum/NN
,/,
the/DT
biases/NNS
ennumerated/VBD
above/IN
indicate/VBP
a/DT
0.7/CD
percentage/NN
point/NN
understatement/NN
in/IN
growth/NN
of/IN
total/JJ
real/JJ
GNP/NNP
./.
For/IN
the/DT
private/JJ
domestic/JJ
business/NN
economy/NN
,/,
the/DT
bias/NN
was/VBD
a/DT
bit/NN
over/IN
0.5/CD
percentage/NN
point/NN
./.
In/IN
other/JJ
words/NNS
,/,
the/DT
growth/NN
rates/NNS
of/IN
both/DT
total/NN
GNP/NNP
and/CC
real/JJ
private/JJ
business/NN
product/NN
per/IN
labor/NN
hour/NN
have/VBP
been/VBN
underestimated/VBN
by/IN
about/IN
20/CD
%/NN
./.
Mr./NNP
Kendrick/NNP
is/VBZ
professor/NN
emeritus/NN
of/IN
economics/NNS
at/IN
George/NNP
Washington/NNP
University/NNP
./.
He/PRP
is/VBZ
co-author/NN
of/IN
``/``
Personal/NNP
Productivity/NNP
:/:
How/WRB
to/TO
Increase/VB
Your/PRP$
Satisfaction/NN
in/IN
Living/VBG
''/''
(/(
M.E./NNP
Sharp/NNP
,/,
1988/CD
Union/NNP
Carbide/NNP
Corp./NNP
said/VBD
third-quarter/JJ
net/NN
income/NN
plunged/VBD
35/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
on/IN
weakness/NN
in/IN
the/DT
company/NN
's/POS
mainstay/NN
chemicals/NNS
and/CC
plastics/NNS
business/NN
./.
Net/NN
was/VBD
$/$
139/CD
million/CD
,/,
or/CC
98/CD
cents/NNS
a/DT
share/NN
,/,
for/IN
the/DT
quarter/NN
,/,
compared/VBN
with/IN
$/$
213/CD
million/CD
,/,
or/CC
$/$
1.56/CD
a/DT
share/NN
,/,
a/DT
year/NN
ago/IN
./.
Sales/NNS
were/VBD
$/$
2.14/CD
billion/CD
,/,
up/IN
1.6/CD
%/NN
from/IN
$/$
2.11/CD
billion/CD
the/DT
previous/JJ
year/NN
./.
Carbide/NNP
,/,
like/IN
other/JJ
companies/NNS
with/IN
a/DT
heavy/JJ
reliance/NN
on/IN
the/DT
so-called/JJ
commodity/NN
end/NN
of/IN
the/DT
chemicals/NNS
industry/NN
,/,
was/VBD
expected/VBN
to/TO
post/VB
earnings/NNS
sharply/RB
lower/JJR
than/IN
in/IN
an/DT
exceptionally/RB
strong/JJ
1988/CD
third/JJ
quarter/NN
./.
But/CC
the/DT
company/NN
's/POS
latest/JJS
quarter/NN
was/VBD
a/DT
few/JJ
pennies/NNS
a/DT
share/NN
lower/JJR
than/IN
the/DT
more/RBR
pessimistic/JJ
projections/NNS
on/IN
Wall/NNP
Street/NNP
./.
``/``
It/PRP
certainly/RB
was/VBD
n't/RB
a/DT
disaster/NN
,/,
but/CC
it/PRP
does/VBZ
show/VB
weakness/NN
''/''
in/IN
some/DT
of/IN
the/DT
company/NN
's/POS
chief/NN
markets/NNS
,/,
said/VBD
George/NNP
Krug/NNP
,/,
a/DT
chemicals-industry/NN
analyst/NN
at/IN
Oppenheimer/NNP
&/CC
Co/NNP
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Carbide/NNP
closed/VBD
at/IN
$/$
24.50/CD
a/DT
share/NN
,/,
down/IN
50/CD
cents/NNS
./.
Prices/NNS
for/IN
polyethylene/NN
,/,
a/DT
common/JJ
plastic/NN
and/CC
an/DT
important/JJ
Carbide/NNP
product/NN
,/,
started/VBD
to/TO
fall/VB
early/RB
this/DT
year/NN
;/:
the/DT
slide/NN
accelerated/VBD
in/IN
the/DT
third/JJ
quarter/NN
as/IN
buyers/NNS
continued/VBD
to/TO
trim/VB
inventories/NNS
./.
Prices/NNS
also/RB
fell/VBD
for/IN
ethylene/NN
oxide/NN
and/CC
glycols/NNS
,/,
products/NNS
used/VBN
in/IN
making/VBG
antifreeze/NN
./.
Some/DT
producers/NNS
of/IN
polyethylene/NN
,/,
figuring/VBG
the/DT
inventory/NN
reductions/NNS
are/VBP
near/IN
an/DT
end/NN
,/,
have/VBP
announced/VBN
price/NN
boosts/NNS
./.
The/DT
first/JJ
real/JJ
test/NN
of/IN
whether/IN
prices/NNS
have/VBP
hit/VBN
bottom/NN
may/MD
come/VB
in/IN
the/DT
next/JJ
several/JJ
weeks/NNS
,/,
when/WRB
the/DT
new/JJ
prices/NNS
become/VBP
effective/JJ
./.
A/DT
Carbide/NNP
spokesman/NN
said/VBD
``/``
the/DT
conditions/NNS
are/VBP
right/JJ
for/IN
the/DT
increase/NN
to/TO
hold/VB
./.
''/''
For/IN
the/DT
third/JJ
quarter/NN
,/,
operating/NN
profit/NN
from/IN
Carbide/NNP
's/POS
chemicals/NNS
and/CC
plastics/NNS
business/NN
fell/VBD
to/TO
$/$
238/CD
million/CD
from/IN
$/$
352/CD
million/CD
a/DT
year/NN
ago/IN
,/,
before/IN
accounting/VBG
for/IN
taxes/NNS
and/CC
interest/NN
expense/NN
./.
Operating/NN
profit/NN
from/IN
carbon/NN
products/NNS
,/,
such/JJ
as/IN
graphite/NN
electrodes/NNS
,/,
also/RB
declined/VBD
,/,
to/TO
$/$
6/CD
million/CD
from/IN
$/$
20/CD
million/CD
./.
In/IN
the/DT
industrial-gases/JJ
segment/NN
,/,
operating/NN
profit/NN
climbed/VBD
to/TO
$/$
87/CD
million/CD
from/IN
$/$
58/CD
million/CD
./.
The/DT
latest/JJS
quarter/NN
included/VBD
a/DT
gain/NN
of/IN
about/IN
$/$
62/CD
million/CD
on/IN
the/DT
sale/NN
of/IN
the/DT
company/NN
's/POS
urethane/NN
polyols/NNS
and/CC
propylene/NN
glycols/NNS
businesses/NNS
./.
Propylene/NN
glycols/NNS
are/VBP
used/VBN
in/IN
making/VBG
personal-care/JJ
products/NNS
such/JJ
as/IN
shampoo/NN
,/,
and/CC
urethane/NN
polyols/NNS
are/VBP
used/VBN
in/IN
making/VBG
the/DT
polyurethane/NN
foam/NN
found/VBN
in/IN
furniture/NN
cushioning/NN
and/CC
other/JJ
products/NNS
./.
That/DT
gain/NN
was/VBD
mostly/RB
offset/VBN
by/IN
a/DT
loss/NN
of/IN
about/IN
$/$
55/CD
million/CD
from/IN
a/DT
write-down/NN
in/IN
its/PRP$
polysilicon/NN
business/NN
./.
Polysilicon/NN
is/VBZ
used/VBN
in/IN
making/VBG
integrated/VBN
circuits/NNS
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
net/NN
totaled/VBD
$/$
526/CD
million/CD
,/,
or/CC
$/$
3.74/CD
a/DT
share/NN
,/,
up/IN
5/CD
%/NN
from/IN
$/$
501/CD
million/CD
,/,
or/CC
$/$
3.71/CD
a/DT
share/NN
,/,
a/DT
year/NN
ago/IN
./.
Sales/NNS
rose/VBD
7.7/CD
%/NN
to/TO
$/$
6.66/CD
billion/CD
from/IN
$/$
6.19/CD
billion/CD
./.
At/IN
least/JJS
10/CD
states/NNS
are/VBP
resisting/VBG
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
's/POS
nationwide/JJ
effort/NN
to/TO
settle/VB
its/PRP$
legal/JJ
troubles/NNS
,/,
and/CC
some/DT
might/MD
instead/RB
try/VB
to/TO
revoke/VB
the/DT
firm/NN
's/POS
license/NN
to/TO
sell/VB
securities/NNS
within/IN
their/PRP$
borders/NNS
./.
The/DT
reluctance/NN
of/IN
some/DT
states/NNS
to/TO
let/VB
Drexel/NNP
off/IN
the/DT
hook/NN
could/MD
hamper/VB
the/DT
firm/NN
's/POS
attempts/NNS
to/TO
polish/VB
its/PRP$
image/NN
after/IN
its/PRP$
guilty/JJ
plea/NN
to/TO
six/CD
felonies/NNS
last/JJ
month/NN
,/,
say/VBP
several/JJ
people/NNS
familiar/JJ
with/IN
the/DT
discussions/NNS
./.
Up/IN
to/TO
now/RB
,/,
Drexel/NNP
has/VBZ
made/VBN
a/DT
rapid-fire/JJ
series/NN
of/IN
settlements/NNS
with/IN
25/CD
states/NNS
and/CC
the/DT
commonwealth/NN
of/IN
Puerto/NNP
Rico/NNP
./.
Just/RB
yesterday/NN
,/,
New/NNP
Hampshire/NNP
announced/VBD
it/PRP
made/VBD
a/DT
$/$
75,000/CD
settlement/NN
with/IN
Drexel/NNP
,/,
a/DT
record-tying/JJ
fine/NN
for/IN
a/DT
securities-law/NN
matter/NN
in/IN
that/DT
state/NN
./.
These/DT
states/NNS
have/VBP
been/VBN
entering/VBG
into/IN
settlements/NNS
with/IN
Drexel/NNP
as/IN
part/NN
of/IN
the/DT
firm/NN
's/POS
efforts/NNS
to/TO
operate/VB
freely/RB
anywhere/RB
in/IN
the/DT
U.S./NNP
despite/IN
its/PRP$
record/NN
as/IN
an/DT
admitted/VBN
felon/NN
./.
But/CC
individuals/NNS
familiar/JJ
with/IN
the/DT
generally/RB
successful/JJ
Drexel/NNP
talks/NNS
say/VBP
the/DT
firm/NN
is/VBZ
meeting/VBG
resistance/NN
from/IN
some/DT
big/JJ
states/NNS
,/,
including/VBG
New/NNP
Jersey/NNP
,/,
New/NNP
York/NNP
,/,
California/NNP
,/,
Pennsylvania/NNP
,/,
Connecticut/NNP
and/CC
Missouri/NNP
./.
Officials/NNS
in/IN
some/DT
of/IN
these/DT
states/NNS
say/VBP
they/PRP
do/VBP
n't/RB
want/VB
to/TO
simply/RB
accept/VB
the/DT
settlements/NNS
offered/VBN
by/IN
Drexel/NNP
./.
They/PRP
question/VBP
if/IN
Drexel/NNP
is/VBZ
getting/VBG
easier/JJR
treatment/NN
than/IN
the/DT
many/JJ
small/JJ
penny-stock/JJ
firms/NNS
whose/WP$
brokerage/NN
licenses/NNS
are/VBP
routinely/RB
revoked/VBN
./.
Drexel/NNP
has/VBZ
to/TO
settle/VB
with/IN
state/NN
securities/NNS
regulators/NNS
in/IN
the/DT
wake/NN
of/IN
its/PRP$
criminal/JJ
guilty/JJ
plea/NN
and/CC
a/DT
related/VBN
civil/JJ
settlement/NN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
that/WDT
includes/VBZ
payment/NN
of/IN
$/$
650/CD
million/CD
in/IN
penalties/NNS
./.
These/DT
stem/VBP
from/IN
a/DT
two-year/JJ
federal/JJ
investigation/NN
of/IN
insider/NN
trading/NN
and/CC
securities/NNS
fraud/NN
on/IN
Wall/NNP
Street/NNP
./.
Ohio/NNP
,/,
the/DT
District/NNP
of/IN
Columbia/NNP
,/,
Tennessee/NNP
and/CC
Illinois/NNP
have/VBP
been/VBN
less/RBR
resistant/JJ
to/TO
Drexel/NNP
than/IN
the/DT
other/JJ
six/CD
states/NNS
,/,
but/CC
nonetheless/RB
have/VBP
refused/VBN
to/TO
settle/VB
so/RB
far/RB
,/,
say/VBP
those/DT
familiar/JJ
with/IN
the/DT
discussions/NNS
./.
Drexel/NNP
says/VBZ
it/PRP
does/VBZ
n't/RB
expect/VB
any/DT
of/IN
its/PRP$
state/NN
brokerage/NN
licenses/NNS
will/MD
be/VB
revoked/VBN
,/,
and/CC
even/RB
if/IN
some/DT
are/VBP
,/,
its/PRP$
securities/NNS
business/NN
would/MD
n't/RB
be/VB
directly/RB
hurt/VBN
./.
It/PRP
already/RB
has/VBZ
sold/VBN
its/PRP$
retail/NN
,/,
or/CC
individual-investor/NN
,/,
brokerage/NN
network/NN
;/:
securities/NNS
firms/NNS
do/VBP
n't/RB
need/VB
brokerage/NN
licenses/NNS
for/IN
non-retail/JJ
activities/NNS
such/JJ
as/IN
investment/NN
banking/NN
./.
Still/RB
,/,
if/IN
nothing/NN
else/RB
,/,
a/DT
revoked/VBN
brokerage/NN
license/NN
could/MD
be/VB
a/DT
burden/NN
because/IN
it/PRP
must/MD
be/VB
disclosed/VBN
in/IN
many/JJ
of/IN
the/DT
transactions/NNS
in/IN
which/WDT
Drexel/NNP
could/MD
be/VB
involved/VBN
./.
Securities/NNS
regulators/NNS
praise/VBP
Drexel/NNP
for/IN
its/PRP$
energetic/JJ
effort/NN
,/,
led/VBN
by/IN
government-approved/JJ
general/JJ
counsel/NN
Saul/NNP
S./NNP
Cohen/NNP
,/,
to/TO
settle/VB
its/PRP$
legal/JJ
problems/NNS
with/IN
the/DT
states/NNS
./.
But/CC
they/PRP
disagree/VBP
about/IN
the/DT
message/NN
these/DT
settlements/NNS
give/VBP
to/TO
the/DT
public/NN
./.
``/``
There/EX
was/VBD
a/DT
lot/NN
of/IN
internal/JJ
debate/NN
about/IN
that/DT
specific/JJ
issue/NN
,/,
''/''
said/VBD
Susan/NNP
Bryant/NNP
,/,
Oklahoma/NNP
's/POS
chief/NN
securities/NNS
regulator/NN
and/CC
president/NN
of/IN
the/DT
North/NNP
American/NNP
Securities/NNPS
Administrators/NNPS
Association/NNP
,/,
which/WDT
drafted/VBD
a/DT
voluntary/JJ
settlement/NN
plan/NN
for/IN
the/DT
states/NNS
with/IN
Drexel/NNP
./.
The/DT
question/NN
,/,
she/PRP
said/VBD
,/,
is/VBZ
whether/IN
Drexel/NNP
should/MD
be/VB
allowed/VBN
to/TO
pay/VB
and/CC
move/VB
on/IN
,/,
or/CC
``/``
whether/IN
you/PRP
should/MD
(/(
simply/RB
)/)
revoke/VB
the/DT
license/NN
when/WRB
someone/NN
is/VBZ
convicted/VBN
of/IN
a/DT
felony/NN
./.
''/''
While/IN
Ms./NNP
Bryant/NNP
's/POS
state/NN
went/VBD
ahead/RB
and/CC
accepted/VBN
Drexel/NNP
's/POS
settlement/NN
offer/NN
of/IN
$/$
25,000/CD
,/,
she/PRP
said/VBD
:/:
``/``
I/PRP
do/VBP
n't/RB
have/VB
any/DT
argument/NN
with/IN
those/DT
who/WP
came/VBD
to/TO
different/JJ
conclusions/NNS
./.
I/PRP
can/MD
see/VB
both/DT
sides/NNS
./.
''/''
Similarly/RB
,/,
Alfred/NNP
Rubega/NNP
,/,
New/NNP
Hampshire/NNP
's/POS
director/NN
of/IN
securities/NNS
regulation/NN
,/,
said/VBD
his/PRP$
state/NN
had/VBD
n't/RB
received/VBN
any/DT
complaints/NNS
about/IN
Drexel/NNP
,/,
so/IN
it/PRP
really/RB
could/MD
n't/RB
press/VB
the/DT
issue/NN
./.
Still/RB
,/,
``/``
I/PRP
understand/VBP
the/DT
reasons/NNS
''/''
that/IN
other/JJ
states/NNS
are/VBP
holding/VBG
out/IN
,/,
he/PRP
said/VBD
./.
Mr./NNP
Cohen/NNP
,/,
the/DT
Drexel/NNP
general/JJ
counsel/NN
,/,
said/VBD
,/,
``/``
I/PRP
do/VBP
n't/RB
think/VB
,/,
as/IN
we/PRP
say/VBP
in/IN
investment/NN
banking/NN
,/,
that/IN
`/``
by/IN
the/DT
end/NN
of/IN
the/DT
day/NN
'/''
we/PRP
'll/MD
be/VB
losing/VBG
any/DT
licenses/NNS
./.
''/''
Asked/VBD
about/IN
states/NNS
that/WDT
are/VBP
taking/VBG
a/DT
hard/JJ
line/NN
,/,
he/PRP
said/VBD
,/,
``/``
There/EX
are/VBP
states/NNS
that/WDT
have/VBP
asked/VBN
for/IN
additional/JJ
information/NN
,/,
which/WDT
we/PRP
are/VBP
providing/VBG
to/TO
them/PRP
./.
''/''
Mr./NNP
Cohen/NNP
said/VBD
more/RBR
than/IN
$/$
2.8/CD
million/CD
has/VBZ
been/VBN
paid/VBN
to/TO
26/CD
states/NNS
and/CC
that/IN
Drexel/NNP
still/RB
expects/VBZ
to/TO
pay/VB
out/IN
a/DT
total/NN
of/IN
$/$
11.5/CD
million/CD
./.
By/IN
the/DT
end/NN
of/IN
this/DT
week/NN
,/,
Drexel/NNP
should/MD
have/VB
another/DT
three/CD
to/TO
four/CD
settlements/NNS
,/,
Mr./NNP
Cohen/NNP
said/VBD
./.
``/``
The/DT
rate/NN
we/PRP
're/VBP
going/VBG
,/,
I/PRP
think/VBP
that/IN
by/IN
the/DT
end/NN
of/IN
the/DT
month/NN
,/,
we/PRP
're/VBP
looking/VBG
to/TO
have/VB
a/DT
total/NN
of/IN
30/CD
to/TO
35/CD
,/,
''/''
he/PRP
said/VBD
./.
That/DT
total/NN
would/MD
be/VB
important/JJ
for/IN
Drexel/NNP
./.
The/DT
investment/NN
bank/NN
has/VBZ
previously/RB
announced/VBN
that/IN
as/IN
part/NN
of/IN
its/PRP$
punishment/NN
it/PRP
would/MD
create/VB
an/DT
independent/JJ
foundation/NN
to/TO
promote/VB
ethical/JJ
behavior/NN
in/IN
the/DT
securities/NNS
industry/NN
./.
A/DT
proviso/NN
to/TO
that/DT
promise/NN
is/VBZ
that/IN
a/DT
minimum/NN
of/IN
35/CD
states/NNS
reach/VBP
settlement/NN
agreements/NNS
before/IN
next/JJ
Tuesday/NNP
./.
There/EX
are/VBP
,/,
according/VBG
to/TO
several/JJ
securities/NNS
commissioners/NNS
,/,
at/IN
least/JJS
16/CD
states/NNS
that/WDT
are/VBP
either/RB
close/RB
to/TO
settlements/NNS
with/IN
Drexel/NNP
or/CC
who/WP
do/VBP
n't/RB
appear/VB
opposed/VBN
to/TO
settling/VBG
./.
Drexel/NNP
's/POS
proposed/VBN
state/NN
fines/NNS
have/VBP
been/VBN
based/VBN
on/IN
a/DT
state/NN
's/POS
population/NN
and/CC
on/IN
the/DT
size/NN
of/IN
Drexel/NNP
's/POS
business/NN
in/IN
the/DT
state/NN
./.
New/NNP
Jersey/NNP
,/,
for/IN
example/NN
,/,
was/VBD
asked/VBN
to/TO
accept/VB
$/$
300,000/CD
,/,
but/CC
refused/VBD
./.
The/DT
state/NN
is/VBZ
n't/RB
ruling/VBG
out/IN
revoking/VBG
Drexel/NNP
's/POS
brokerage/NN
license/NN
./.
The/DT
state/NN
can/MD
also/RB
bar/VB
Drexel/NNP
as/IN
an/DT
investment/NN
adviser/NN
./.
State/NN
officials/NNS
wo/MD
n't/RB
describe/VB
their/PRP$
position/NN
in/IN
detail/NN
,/,
but/CC
James/NNP
McLelland/NNP
Smith/NNP
,/,
state/NN
securities/NNS
chief/NN
,/,
said/VBD
:/:
``/``
We/PRP
really/RB
are/VBP
still/RB
looking/VBG
at/IN
it/PRP
and/CC
have/VB
informed/VBN
(/(
Drexel/NNP
the/DT
proposal/NN
is/VBZ
really/RB
not/RB
sufficient/JJ
for/IN
settlement/NN
./.
''/''
Connecticut/NNP
already/RB
has/VBZ
issued/VBN
a/DT
``/``
notice/NN
of/IN
intent/NN
''/''
to/TO
revoke/VB
Drexel/NNP
's/POS
brokerage/NN
license/NN
./.
It/PRP
is/VBZ
one/CD
of/IN
the/DT
states/NNS
that/WDT
have/VBP
met/VBN
with/IN
Mr./NNP
Cohen/NNP
and/CC
asked/VBN
for/IN
additional/JJ
information/NN
about/IN
investors/NNS
'/POS
accounts/NNS
and/CC
other/JJ
matters/NNS
./.
``/``
This/DT
particular/JJ
issue/NN
goes/VBZ
to/TO
the/DT
very/JJ
integrity/NN
of/IN
the/DT
capital-formation/NN
market/NN
,/,
''/''
state/NN
Banking/NNP
Commissioner/NNP
Howard/NNP
Brown/NNP
said/VBD
./.
A/DT
banking/NN
department/NN
spokesman/NN
added/VBD
:/:
``/``
Commissioner/NNP
Brown/NNP
does/VBZ
n't/RB
feel/VB
that/DT
money/NN
alone/RB
is/VBZ
the/DT
issue/NN
here/RB
./.
''/''
Particularly/RB
touchy/JJ
are/VBP
the/DT
cases/NNS
of/IN
New/NNP
York/NNP
,/,
which/WDT
is/VBZ
Drexel/NNP
's/POS
base/NN
,/,
and/CC
California/NNP
,/,
the/DT
base/NN
of/IN
Drexel/NNP
's/POS
highly/RB
profitable/JJ
junk-bond/NN
operation/NN
that/WDT
led/VBD
to/TO
the/DT
firm/NN
's/POS
legal/JJ
difficulties/NNS
./.
Neither/DT
state/NN
has/VBZ
settled/VBN
,/,
and/CC
officials/NNS
in/IN
the/DT
two/CD
states/NNS
wo/MD
n't/RB
discuss/VB
their/PRP$
reasons/NNS
for/IN
not/RB
doing/VBG
so/RB
./.
But/CC
Drexel/NNP
has/VBZ
made/VBN
it/PRP
clear/JJ
it/PRP
could/MD
mount/VB
a/DT
significant/JJ
legal/JJ
battle/NN
in/IN
each/DT
state/NN
if/IN
its/PRP$
license/NN
is/VBZ
revoked/VBN
,/,
according/VBG
to/TO
state/NN
officials/NNS
./.
Ms./NNP
Bryant/NNP
,/,
the/DT
head/NN
of/IN
the/DT
state/NN
securities/NNS
group/NN
,/,
said/VBD
Drexel/NNP
has/VBZ
done/VBN
a/DT
better/JJR
job/NN
of/IN
settling/VBG
with/IN
the/DT
states/NNS
than/IN
E.F./NNP
Hutton/NNP
did/VBD
after/IN
its/PRP$
guilty/JJ
plea/NN
to/TO
a/DT
massive/JJ
check-kiting/JJ
scheme/NN
several/JJ
years/NNS
ago/IN
./.
Still/RB
,/,
she/PRP
said/VBD
,/,
Drexel/NNP
's/POS
trouble/NN
with/IN
some/DT
states/NNS
is/VBZ
n't/RB
a/DT
bad/JJ
thing/NN
./.
``/``
This/DT
process/NN
should/MD
point/VB
out/IN
that/IN
it/PRP
's/VBZ
not/RB
going/VBG
to/TO
be/VB
easy/JJ
for/IN
a/DT
firm/NN
that/WDT
's/VBZ
convicted/VBN
of/IN
a/DT
felony/NN
to/TO
immediately/RB
jump/VB
back/RB
into/IN
the/DT
retail/JJ
business/NN
,/,
''/''
Ms./NNP
Bryant/NNP
said/VBD
./.
``/``
We/PRP
need/VBP
to/TO
have/VB
somebody/NN
worried/VBN
so/IN
they/PRP
do/VBP
n't/RB
do/VB
this/DT
again/RB
./.
''/''
These/DT
are/VBP
the/DT
26/CD
states/NNS
,/,
including/VBG
the/DT
commonwealth/NN
of/IN
Puerto/NNP
Rico/NNP
,/,
that/WDT
have/VBP
settled/VBN
with/IN
Drexel/NNP
:/:
Alaska/NNP
,/,
Arkansas/NNP
,/,
Delaware/NNP
,/,
Georgia/NNP
,/,
Hawaii/NNP
,/,
Idaho/NNP
,/,
Indiana/NNP
,/,
Iowa/NNP
,/,
Kansas/NNP
,/,
Kentucky/NNP
,/,
Maine/NNP
,/,
Maryland/NNP
,/,
Minnesota/NNP
,/,
Mississippi/NNP
,/,
New/NNP
Hampshire/NNP
,/,
New/NNP
Mexico/NNP
,/,
North/NNP
Dakota/NNP
,/,
Oklahoma/NNP
,/,
Oregon/NNP
,/,
South/NNP
Carolina/NNP
,/,
South/NNP
Dakota/NNP
,/,
Utah/NNP
,/,
Vermont/NNP
,/,
Washington/NNP
,/,
Wyoming/NNP
and/CC
Puerto/NNP
Rico/NNP
./.
Time/NNP
Warner/NNP
Inc./NNP
reported/VBD
a/DT
third-quarter/JJ
net/JJ
loss/NN
of/IN
$/$
176/CD
million/CD
,/,
or/CC
$/$
2.88/CD
cents/NNS
a/DT
share/NN
,/,
reflecting/VBG
acquisition/NN
costs/NNS
for/IN
a/DT
59.3/CD
%/NN
stake/NN
in/IN
Warner/NNP
Communications/NNPS
Inc./NNP
and/CC
the/DT
purchase/NN
method/NN
of/IN
accounting/VBG
for/IN
the/DT
transaction/NN
./.
Separately/RB
,/,
Warner/NNP
reported/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
106/CD
million/CD
,/,
or/CC
56/CD
cents/NNS
a/DT
share/NN
,/,
including/VBG
merger/NN
expenses/NNS
of/IN
$/$
100/CD
million/CD
and/CC
$/$
120/CD
million/CD
in/IN
charges/NNS
associated/VBN
with/IN
stock-appreciation-based/JJ
compensation/NN
plans/NNS
./.
Time/NNP
Warner/NNP
is/VBZ
in/IN
the/DT
process/NN
of/IN
completing/VBG
its/PRP$
acquisition/NN
of/IN
the/DT
remaining/VBG
Warner/NNP
shares/NNS
./.
Time/NNP
Warner/NNP
emphasized/VBD
in/IN
a/DT
news/NN
release/NN
that/IN
it/PRP
should/MD
be/VB
evaluated/VBN
based/VBN
on/IN
its/PRP$
cash/NN
flow/NN
,/,
which/WDT
the/DT
company/NN
defined/VBD
as/IN
earnings/NNS
before/IN
interest/NN
,/,
taxes/NNS
,/,
depreciation/NN
and/CC
amortization/NN
./.
On/IN
a/DT
pro-forma/FW
basis/NN
,/,
assuming/VBG
the/DT
merger/NN
was/VBD
effective/JJ
Jan/NNP
1/CD
,/,
1988/CD
,/,
including/VBG
the/DT
results/NNS
from/IN
both/DT
Time/NNP
Inc./NNP
and/CC
all/DT
of/IN
Warner/NNP
,/,
that/IN
cash/NN
flow/NN
figure/NN
would/MD
be/VB
$/$
526/CD
million/CD
for/IN
the/DT
latest/JJS
quarter/NN
,/,
more/RBR
than/IN
double/VB
the/DT
comparable/JJ
figure/NN
a/DT
year/NN
ago/IN
,/,
or/CC
$/$
242/CD
million/CD
,/,
according/VBG
to/TO
Time/NNP
Warner/NNP
./.
Some/DT
analysts/NNS
at/IN
least/JJS
are/VBP
buying/VBG
that/DT
argument/NN
,/,
and/CC
were/VBD
n't/RB
alarmed/VBN
by/IN
the/DT
losses/NNS
./.
``/``
What/WP
really/RB
matters/VBZ
is/VBZ
the/DT
operating/VBG
income/NN
of/IN
the/DT
divisions/NNS
:/:
I/PRP
look/VBP
at/IN
these/DT
numbers/NNS
and/CC
I/PRP
say/VBP
,/,
these/DT
businesses/NNS
are/VBP
doing/VBG
well/RB
,/,
''/''
said/VBD
Mark/NNP
Manson/NNP
,/,
a/DT
vice/NN
president/NN
of/IN
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
Securities/NNPS
Corp/NNP
./.
``/``
For/IN
example/NN
,/,
Warner/NNP
made/VBD
more/JJR
than/IN
$/$
100/CD
million/CD
from/IN
filmed/VBN
entertainment/NN
in/IN
three/CD
months/NNS
./.
That/DT
's/VBZ
a/DT
big/JJ
number/NN
./.
Warner/NNP
also/RB
had/VBD
a/DT
gain/NN
of/IN
more/RBR
than/IN
13/CD
%/NN
from/IN
records/NNS
and/CC
music/NN
publishing/NN
,/,
even/RB
though/IN
the/DT
domestic/JJ
record/NN
business/NN
was/VBD
sluggish/JJ
this/DT
summer/NN
./.
''/''
In/IN
the/DT
year-ago/JJ
third/JJ
quarter/NN
,/,
Time/NNP
on/IN
its/PRP$
own/JJ
reported/VBD
net/JJ
income/NN
of/IN
$/$
81/CD
million/CD
,/,
or/CC
$/$
1.42/CD
a/DT
share/NN
./.
Combined/VBN
revenue/NN
for/IN
the/DT
latest/JJS
quarter/NN
of/IN
Time/NNP
Warner/NNP
was/VBD
$/$
2.2/CD
billion/CD
,/,
compared/VBN
with/IN
the/DT
year-ago/JJ
Time/NNP
revenue/NN
of/IN
$/$
1.1/CD
billion/CD
./.
On/IN
a/DT
pro/FW
forma/FW
basis/NN
,/,
including/VBG
all/DT
of/IN
Warner/NNP
's/POS
earnings/NNS
,/,
Time/NNP
Warner/NNP
had/VBD
a/DT
third-quarter/JJ
loss/NN
of/IN
$/$
217/CD
million/CD
,/,
compared/VBN
with/IN
a/DT
$/$
342/CD
million/CD
loss/NN
a/DT
year/NN
earlier/RBR
./.
On/IN
the/DT
same/JJ
basis/NN
,/,
revenue/NN
rose/VBD
to/TO
$/$
2.7/CD
billion/CD
from/IN
$/$
2.2/CD
billion/CD
./.
For/IN
the/DT
third/JJ
quarter/NN
,/,
Warner/NNP
's/POS
$/$
106/CD
million/CD
loss/NN
compared/VBN
with/IN
a/DT
year-ago/JJ
loss/NN
of/IN
$/$
113/CD
million/CD
,/,
or/CC
90/CD
cents/NNS
a/DT
share/NN
./.
Revenue/NN
rose/VBD
to/TO
$/$
1.5/CD
billion/CD
from/IN
$/$
1.1/CD
billion/CD
./.
The/DT
1988/CD
figures/NNS
were/VBD
restated/VBN
to/TO
include/VB
the/DT
results/NNS
of/IN
Lorimar/NNP
Telepictures/NNPS
Corp./NNP
,/,
which/WDT
Warner/NNP
acquired/VBD
in/IN
January/NNP
./.
Time/NNP
Warner/NNP
's/POS
operating/NN
earnings/NNS
got/VBD
a/DT
boost/NN
from/IN
Warner/NNP
's/POS
record/NN
box-office/NN
results/NNS
./.
``/``
Batman/NNP
''/''
alone/RB
has/VBZ
racked/VBN
up/IN
more/RBR
than/IN
$/$
247/CD
million/CD
in/IN
box-office/NN
receipts/NNS
to/TO
date/NN
,/,
making/VBG
it/PRP
Warner/NNP
Bros/NNP
./.
'/''
largest/JJS
grossing/VBG
film/NN
ever/RB
./.
``/``
Lethal/NNP
Weapon/NNP
II/NNP
''/''
was/VBD
also/RB
a/DT
big/JJ
hit/NN
./.
Warner/NNP
also/RB
contributed/VBD
record/NN
results/NNS
from/IN
its/PRP$
music/NN
business/NN
,/,
where/WRB
unit/NN
sales/NNS
of/IN
compact/JJ
discs/NNS
rose/VBD
more/JJR
than/IN
50/CD
%/NN
from/IN
a/DT
year/NN
ago/IN
,/,
the/DT
company/NN
said/VBD
,/,
helped/VBN
by/IN
Prince/NNP
's/POS
``/``
Batman/NNP
''/''
soundtrack/NN
./.
Time/NNP
Warner/NNP
said/VBD
its/PRP$
cable/NN
division/NN
turned/VBD
in/IN
a/DT
77/CD
%/NN
increase/NN
in/IN
operating/NN
cash/NN
flow/NN
,/,
to/TO
$/$
166/CD
million/CD
from/IN
$/$
94/CD
million/CD
,/,
reflecting/VBG
higher/JJR
per-subscriber/NN
revenue/NN
./.
In/IN
addition/NN
,/,
the/DT
1988/CD
results/NNS
included/VBD
a/DT
$/$
20/CD
million/CD
charge/NN
reflecting/VBG
a/DT
reserve/NN
for/IN
relocation/NN
related/VBN
expenses/NNS
at/IN
American/NNP
Television/NNP
&/CC
Communications/NNPS
Corp/NNP
./.
On/IN
the/DT
other/JJ
hand/NN
,/,
Time/NNP
Warner/NNP
said/VBD
its/PRP$
operating/NN
cash/NN
flow/NN
declined/VBD
in/IN
the/DT
quarter/NN
for/IN
its/PRP$
magazine/NN
division/NN
,/,
its/PRP$
books/NNS
division/NN
and/CC
the/DT
Home/NNP
Box/NNP
Office/NNP
programming/VBG
division/NN
./.
In/IN
magazines/NNS
,/,
higher/JJR
advertising/NN
revenues/NNS
at/IN
Sports/NNP
Illustrated/NNP
and/CC
Fortune/NNP
were/VBD
offset/VBN
by/IN
lower/JJR
ad/NN
revenue/NN
for/IN
other/JJ
major/JJ
magazines/NNS
./.
The/DT
programming/VBG
division/NN
saw/VBD
a/DT
decline/NN
in/IN
operating/NN
cash/NN
flow/NN
because/IN
the/DT
year-ago/JJ
quarter/NN
included/VBD
a/DT
$/$
12/CD
million/CD
dividend/NN
from/IN
Turner/NNP
Broadcasting/NNP
System/NNP
and/CC
because/IN
the/DT
quarter/NN
includes/VBZ
expenses/NNS
associated/VBN
with/IN
the/DT
Nov./NNP
15/CD
launch/NN
of/IN
HBO/NNP
's/POS
Comedy/NNP
Channel/NNP
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Time/NNP
Warner/NNP
closed/VBD
at/IN
$/$
138.625/CD
a/DT
share/NN
,/,
up/IN
$/$
1.875/CD
,/,
while/IN
Warner/NNP
closed/VBD
at/IN
$/$
63.875/CD
a/DT
share/NN
,/,
up/IN
12.5/CD
cents/NNS
./.
Robert/NNP
J./NNP
Penn/NNP
,/,
president/NN
and/CC
chief/NN
executive/NN
officer/NN
,/,
will/MD
take/VB
early/JJ
retirement/NN
from/IN
this/DT
steelmaker/NN
Dec/NNP
31/CD
./.
William/NNP
S./NNP
Leavitt/NNP
,/,
chairman/NN
,/,
said/VBD
Mr./NNP
Penn/NNP
,/,
58/CD
years/NNS
old/JJ
,/,
would/MD
continue/VB
as/IN
a/DT
consultant/NN
and/CC
would/MD
work/VB
with/IN
the/DT
board/NN
in/IN
selecting/VBG
a/DT
successor/NN
./.
UNR/NNP
recently/RB
emerged/VBD
from/IN
bankruptcy-law/NN
proceedings/NNS
that/WDT
left/VBD
64/CD
%/NN
of/IN
the/DT
reorganized/VBN
company/NN
's/POS
common/JJ
stock/NN
in/IN
the/DT
hands/NNS
of/IN
trustees/NNS
of/IN
an/DT
asbestos-disease/NN
claims/NNS
trust/NN
./.
The/DT
company/NN
said/VBD
it/PRP
would/MD
have/VB
no/DT
further/JJ
comment/NN
./.
Mr./NNP
Leavitt/NNP
,/,
37/CD
,/,
was/VBD
elected/VBN
chairman/NN
earlier/RBR
this/DT
year/NN
by/IN
the/DT
company/NN
's/POS
new/JJ
board/NN
,/,
having/VBG
served/VBN
as/IN
vice/NN
president/NN
for/IN
legal/JJ
and/CC
corporate/JJ
affairs/NNS
./.
His/PRP$
father/NN
,/,
David/NNP
S./NNP
Leavitt/NNP
,/,
was/VBD
chairman/NN
and/CC
chief/NN
executive/NN
until/IN
his/PRP$
death/NN
in/IN
an/DT
accident/NN
five/CD
years/NNS
ago/IN
,/,
at/IN
which/WDT
time/NN
Mr./NNP
Penn/NNP
was/VBD
named/VBN
president/NN
./.
Some/DT
House/NNP
Democrats/NNPS
are/VBP
trying/VBG
to/TO
head/VB
off/IN
an/DT
appointment/NN
by/IN
President/NNP
Bush/NNP
to/TO
the/DT
board/NN
that/WDT
oversees/VBZ
the/DT
savings-and-loan/JJ
bailout/NN
,/,
contending/VBG
that/IN
the/DT
prospective/JJ
nominee/NN
is/VBZ
the/DT
head/NN
of/IN
troubled/VBN
banks/NNS
himself/PRP
./.
Four/CD
Democrats/NNPS
on/IN
the/DT
House/NNP
Banking/NNP
Committee/NNP
sent/VBD
President/NNP
Bush/NNP
a/DT
letter/NN
stating/VBG
their/PRP$
concerns/NNS
about/IN
the/DT
expected/VBN
appointment/NN
of/IN
James/NNP
Simmons/NNP
,/,
an/DT
Arizona/NNP
banker/NN
and/CC
former/JJ
fund-raiser/NN
for/IN
Mr./NNP
Bush/NNP
,/,
to/TO
the/DT
Oversight/NNP
Board/NNP
of/IN
the/DT
Resolution/NNP
Trust/NNP
Corp/NNP
./.
The/DT
Oversight/NNP
Board/NNP
,/,
created/VBN
in/IN
the/DT
savings-and-loan/JJ
law/NN
signed/VBN
in/IN
August/NNP
,/,
sets/VBZ
policy/NN
for/IN
the/DT
RTC/NNP
,/,
which/WDT
will/MD
sell/VB
hundreds/NNS
of/IN
the/DT
nation/NN
's/POS
sick/JJ
thrifts/NNS
and/CC
billions/NNS
of/IN
dollars/NNS
of/IN
their/PRP$
assets/NNS
./.
Treasury/NNP
Secretary/NNP
Nicholas/NNP
Brady/NNP
,/,
Federal/NNP
Reserve/NNP
Board/NNP
Chairman/NNP
Alan/NNP
Greenspan/NNP
and/CC
Housing/NNP
and/CC
Urban/NNP
Development/NNP
Secretary/NNP
Jack/NNP
Kemp/NNP
are/VBP
members/NNS
of/IN
the/DT
board/NN
./.
President/NNP
Bush/NNP
must/MD
appoint/VB
two/CD
other/JJ
members/NNS
,/,
one/NN
a/DT
Democrat/NNP
and/CC
one/CD
a/DT
Republican/NNP
./.
An/DT
administration/NN
official/NN
confirmed/VBD
last/JJ
week/NN
that/IN
Mr./NNP
Simmons/NNP
,/,
the/DT
chairman/NN
of/IN
Valley/NNP
National/NNP
Bank/NNP
in/IN
Phoenix/NNP
,/,
is/VBZ
the/DT
Republican/NNP
appointee/NN
,/,
and/CC
that/IN
a/DT
security/NN
clearance/NN
was/VBD
under/IN
way/NN
./.
The/DT
Democratic/JJ
appointee/NN
has/VBZ
n't/RB
been/VBN
determined/VBN
,/,
the/DT
official/NN
said/VBD
./.
Mr./NNP
Simmons/NNP
declined/VBD
to/TO
comment/VB
,/,
and/CC
the/DT
White/NNP
House/NNP
said/VBD
the/DT
congressmen/NNS
's/POS
letter/NN
is/VBZ
under/IN
review/NN
./.
The/DT
letter/NN
,/,
dated/VBN
last/JJ
Thursday/NNP
,/,
cited/VBD
the/DT
losses/NNS
at/IN
Valley/NNP
National/NNP
,/,
and/CC
at/IN
United/NNP
Bank/NNP
,/,
also/RB
of/IN
Phoenix/NNP
,/,
where/WRB
Mr./NNP
Simmons/NNP
was/VBD
chairman/NN
for/IN
29/CD
years/NNS
./.
Both/DT
banks/NNS
have/VBP
been/VBN
battered/VBN
,/,
as/IN
have/VBP
other/JJ
Arizona/NNP
banks/NNS
,/,
by/IN
falling/VBG
real/JJ
estate/NN
prices/NNS
./.
Valley/NNP
National/NNP
,/,
for/IN
example/NN
,/,
had/VBD
$/$
470/CD
million/CD
in/IN
problem/NN
assets/NNS
as/IN
of/IN
June/NNP
./.
``/``
We/PRP
believe/VBP
that/IN
there/EX
are/VBP
numerous/JJ
other/JJ
candidates/NNS
more/RBR
qualified/VBN
for/IN
this/DT
important/JJ
position/NN
and/CC
we/PRP
encourage/VBP
you/PRP
to/TO
give/VB
them/PRP
your/PRP$
thorough/JJ
consideration/NN
before/IN
making/VBG
this/DT
key/JJ
RTC/NNP
appointment/NN
,/,
''/''
the/DT
letter/NN
said/VBD
./.
``/``
The/DT
RTC/NNP
needs/VBZ
the/DT
most/RBS
able/JJ
,/,
competent/JJ
management/NN
available/JJ
./.
''/''
But/CC
Mr./NNP
Simmons/NNP
has/VBZ
long/JJ
ties/NNS
to/TO
both/DT
Republicans/NNPS
and/CC
banking/NN
./.
He/PRP
was/VBD
co-chairman/NN
of/IN
Mr./NNP
Bush/NNP
's/POS
Arizona/NNP
campaign/NN
committee/NN
in/IN
last/JJ
year/NN
's/POS
election/NN
,/,
and/CC
also/RB
worked/VBD
for/IN
Mr./NNP
Bush/NNP
in/IN
the/DT
1980/CD
election/NN
./.
The/DT
two/CD
met/VBD
more/JJR
than/IN
30/CD
years/NNS
ago/IN
,/,
when/WRB
Mr./NNP
Simmons/NNP
worked/VBD
for/IN
Commercial/NNP
Bank/NNP
&/CC
Trust/NNP
Co./NNP
of/IN
Midland/NNP
,/,
Texas/NNP
,/,
where/WRB
Mr./NNP
Bush/NNP
was/VBD
an/DT
organizing/VBG
director/NN
./.
In/IN
1986/CD
,/,
Mr./NNP
Simmons/NNP
also/RB
served/VBD
on/IN
a/DT
committee/NN
of/IN
businessmen/NNS
headed/VBN
by/IN
William/NNP
Seidman/NNP
,/,
chairman/NN
of/IN
the/DT
Federal/NNP
Deposit/NNP
Insurance/NNP
Corp./NNP
and/CC
the/DT
Resolution/NNP
Trust/NNP
Corp/NNP
./.
That/DT
committee/NN
determined/VBD
to/TO
open/VB
Arizona/NNP
to/TO
banking/NN
across/IN
state/NN
lines/NNS
./.
Arizona/NNP
Trend/NNP
magazine/NN
referred/VBD
to/TO
Mr./NNP
Simmons/NNP
this/DT
year/NN
as/IN
one/CD
of/IN
the/DT
25/CD
most/RBS
influential/JJ
people/NNS
in/IN
the/DT
state/NN
./.
The/DT
letter/NN
to/TO
Mr./NNP
Bush/NNP
was/VBD
signed/VBN
by/IN
Reps./NNP
Bruce/NNP
Vento/NNP
D./NNP
,/,
Minn./NNP
the/DT
chairman/NN
of/IN
the/DT
Banking/NNP
Committee/NNP
's/POS
RTC/NNP
Task/NNP
Force/NNP
,/,
Thomas/NNP
McMillen/NNP
D./NNP
,/,
Md./NNP
Kweisi/NNP
Mfume/NNP
D./NNP
,/,
Md/NNP
./.
Paul/NNP
Kanjorski/NNP
D./NNP
,/,
Pa/NNP
./.
Randolph/NNP
W./NNP
McElroy/NNP
,/,
a/DT
vice/NN
chairman/NN
of/IN
this/DT
bank-holding/JJ
company/NN
,/,
was/VBD
named/VBN
to/TO
the/DT
additional/JJ
position/NN
of/IN
chairman/NN
of/IN
its/PRP$
principal/JJ
unit/NN
,/,
Sovran/NNP
Bank/NNP
./.
Mr./NNP
McElroy/NNP
,/,
54/CD
years/NNS
old/JJ
,/,
will/MD
remain/VB
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
the/DT
unit/NN
./.
Sovran/NNP
also/RB
named/VBD
John/NNP
B./NNP
Werner/NNP
a/DT
vice/NN
chairman/NN
of/IN
the/DT
parent/JJ
company/NN
and/CC
the/DT
unit/NN
and/CC
elected/VBD
him/PRP
to/TO
the/DT
newly/RB
created/VBN
position/NN
of/IN
chief/JJ
credit/NN
officer/NN
of/IN
Sovran/NNP
Financial/NNP
,/,
increasing/VBG
the/DT
number/NN
of/IN
corporate/JJ
board/NN
members/NNS
to/TO
35/CD
./.
Mr./NNP
Werner/NNP
,/,
58/CD
,/,
was/VBD
formerly/RB
senior/JJ
executive/JJ
vice/NN
president/NN
of/IN
the/DT
parent/JJ
company/NN
and/CC
the/DT
unit/NN
./.
Moody/NNP
's/POS
Investors/NNP
Service/NNP
Inc./NNP
said/VBD
it/PRP
lowered/VBD
the/DT
debt/NN
ratings/NNS
of/IN
certain/JJ
long-term/JJ
debt/NN
held/VBN
by/IN
this/DT
company/NN
./.
The/DT
debt-rating/JJ
concern/NN
cited/VBD
the/DT
bank/NN
's/POS
move/NN
into/IN
the/DT
Texas/NNP
market/NN
,/,
noting/VBG
its/PRP$
profitability/NN
and/CC
capital/NN
adequacy/NN
measurements/NNS
will/MD
be/VB
depressed/JJ
relative/JJ
to/TO
the/DT
bank/NN
's/POS
past/JJ
performance/NN
./.
Moody/NNP
's/POS
also/RB
said/VBD
it/PRP
raised/VBD
its/PRP$
rating/NN
on/IN
the/DT
Deposit/NNP
Insurance/NNP
Bridge/NNP
Bank/NNP
,/,
now/RB
known/VBN
as/IN
Bank/NNP
One/CD
,/,
Texas/NNP
N.A./NNP
,/,
reflecting/VBG
the/DT
support/NN
of/IN
other/JJ
banking/NN
affiliates/NNS
and/CC
substantial/JJ
assistance/NN
for/IN
the/DT
FDIC/NNP
./.
Officials/NNS
at/IN
the/DT
New/NNP
York/NNP
bank-holding/JJ
company/NN
were/VBD
n't/RB
available/JJ
for/IN
comment/NN
on/IN
the/DT
debt-rating/JJ
changes/NNS
./.
At/IN
Lloyd/NNP
's/POS
of/IN
London/NNP
,/,
underwriters/NNS
still/RB
scratch/VBP
out/RP
policies/NNS
using/VBG
fountain/NN
pens/NNS
and/CC
blotting/VBG
paper/NN
./.
Visitors/NNS
are/VBP
ushered/VBN
into/IN
the/DT
premises/NNS
by/IN
red-frocked/JJ
doormen/NNS
known/VBN
as/IN
waiters/NNS
,/,
a/DT
reminder/NN
of/IN
the/DT
insurance/NN
market/NN
's/POS
origins/NNS
in/IN
a/DT
coffeehouse/NN
in/IN
17th/JJ
century/NN
London/NNP
./.
Such/JJ
trappings/NNS
suggest/VBP
a/DT
glorious/JJ
past/NN
but/CC
give/VBP
no/DT
hint/NN
of/IN
a/DT
troubled/JJ
present/NN
./.
Lloyd/NNP
's/POS
,/,
once/RB
a/DT
pillar/NN
of/IN
the/DT
world/NN
insurance/NN
market/NN
,/,
is/VBZ
being/VBG
shaken/VBN
to/TO
its/PRP$
very/JJ
foundation/NN
./.
The/DT
301-year-old/JJ
exchange/NN
is/VBZ
battered/VBN
by/IN
enormous/JJ
claims/NNS
from/IN
a/DT
decade-long/JJ
run/NN
of/IN
unprecedented/JJ
disasters/NNS
,/,
the/DT
most/RBS
recent/JJ
of/IN
which/WDT
is/VBZ
last/JJ
week/NN
's/POS
earthquake/NN
in/IN
California/NNP
's/POS
Bay/NNP
Area/NNP
./.
At/IN
the/DT
same/JJ
time/NN
,/,
Lloyd/NNP
's/POS
is/VBZ
besieged/VBN
by/IN
disgruntled/JJ
investors/NNS
and/CC
hamstrung/VBN
by/IN
inefficient/JJ
but/CC
time-honored/JJ
ways/NNS
of/IN
conducting/VBG
business/NN
./.
The/DT
exchange/NN
is/VBZ
gradually/RB
being/VBG
squeezed/VBN
into/IN
narrow/JJ
,/,
less-profitable/JJ
segments/NNS
of/IN
the/DT
market/NN
by/IN
less/JJR
hidebound/JJ
competitors/NNS
./.
``/``
Lloyd/NNP
's/POS
is/VBZ
on/IN
the/DT
ropes/NNS
,/,
''/''
says/VBZ
Peter/NNP
Nutting/NNP
,/,
a/DT
Lloyd/NNP
's/POS
investor/NN
for/IN
17/CD
years/NNS
who/WP
now/RB
leads/VBZ
a/DT
dissident/JJ
group/NN
threatening/VBG
to/TO
sue/VB
exchange/NN
underwriters/NNS
for/IN
alleged/JJ
mismanagement/NN
and/CC
negligence/NN
./.
``/``
It/PRP
needs/VBZ
more/JJR
discipline/NN
./.
It/PRP
needs/VBZ
to/TO
sort/VB
itself/PRP
out/RP
./.
''/''
Most/RBS
troublesome/JJ
is/VBZ
the/DT
shrinking/VBG
pool/NN
of/IN
``/``
names/NNS
,/,
''/''
the/DT
well-heeled/JJ
investors/NNS
some/DT
of/IN
them/PRP
royal/JJ
)/)
who/WP
,/,
as/IN
members/NNS
of/IN
about/RB
360/CD
syndicates/NNS
,/,
underwrite/VBP
policies/NNS
./.
Some/RB
1,750/CD
members/NNS
quit/VBD
the/DT
exchange/NN
last/JJ
year/NN
,/,
more/JJR
than/IN
triple/RB
the/DT
number/NN
of/IN
resignations/NNS
in/IN
1987/CD
./.
Names/NNS
are/VBP
resigning/VBG
at/IN
an/DT
even/RB
faster/JJR
pace/NN
this/DT
year/NN
./.
Lackluster/JJ
returns/NNS
are/VBP
one/CD
reason/NN
./.
The/DT
average/JJ
after-tax/JJ
return/NN
on/IN
investment/NN
in/IN
1986/CD
,/,
the/DT
most/RBS
recent/JJ
year/NN
for/IN
which/WDT
results/NNS
are/VBP
available/JJ
,/,
was/VBD
6.5/CD
%/NN
,/,
according/VBG
to/TO
Chatset/NNP
Ltd./NNP
,/,
an/DT
insurance/NN
consulting/NN
firm/NN
in/IN
London/NNP
./.
In/IN
1985/CD
,/,
it/PRP
was/VBD
2.1/CD
%/NN
./.
Between/IN
1981/CD
and/CC
1986/CD
,/,
the/DT
most/RBS
recent/JJ
five-year/JJ
period/NN
for/IN
which/WDT
figures/NNS
are/VBP
available/JJ
,/,
Lloyd/NNP
's/POS
reported/VBD
over/IN
#/#
3.6/CD
billion/CD
in/IN
claims/NNS
and/CC
reserves/NNS
against/IN
future/JJ
losses/NNS
$/$
5.7/CD
billion/CD
at/IN
today/NN
's/POS
exchange/NN
rates/NNS
the/DT
#/#
1.35/CD
billion/CD
posted/VBN
in/IN
the/DT
previous/JJ
five-year/JJ
period/NN
./.
Many/JJ
of/IN
the/DT
31,329/CD
investors/NNS
who/WP
remain/VBP
are/VBP
beginning/VBG
to/TO
question/VB
one/CD
of/IN
the/DT
exchange/NN
's/POS
most/JJS
basic/JJ
tenets/NNS
,/,
the/DT
concept/NN
of/IN
unlimited/JJ
personal/JJ
liability/NN
./.
Investors/NNS
may/MD
reap/VB
huge/JJ
profits/NNS
when/WRB
premiums/NNS
exceed/VBP
claims/VBZ
,/,
but/CC
they/PRP
are/VBP
liable/JJ
to/TO
their/PRP$
last/JJ
pound/NN
or/CC
dollar/NN
in/IN
the/DT
event/NN
of/IN
a/DT
catastrophe/NN
./.
And/CC
catastrophes/NNS
are/VBP
getting/VBG
ever/RB
more/RBR
costly/JJ
./.
Lloyd/NNP
's/POS
claims/NNS
for/IN
the/DT
1988/CD
Piper/NNP
Alpha/NNP
oil-rig/NN
disaster/NN
in/IN
the/DT
North/NNP
Sea/NNP
,/,
for/IN
instance/NN
,/,
may/MD
reach/VB
$/$
1/CD
billion/CD
./.
During/IN
the/DT
five-year/JJ
period/NN
ended/VBD
1986/CD
,/,
roughly/RB
80/CD
%/NN
of/IN
the/DT
names/NNS
had/VBD
money/NN
tied/VBD
up/RP
in/IN
money-losing/JJ
syndicates/NNS
,/,
according/VBG
to/TO
Chatset/NNP
consultants/NNS
./.
The/DT
peril/NN
of/IN
unlimited/JJ
liability/NN
looms/NNS
large/JJ
for/IN
a/DT
number/NN
of/IN
them/PRP
now/RB
./.
``/``
I/PRP
have/VBP
wished/VBN
I/PRP
could/MD
die/VB
and/CC
be/VB
out/IN
of/IN
it/PRP
--/:
that/DT
's/VBZ
how/WRB
bad/JJ
it/PRP
is/VBZ
,/,
''/''
Betty/NNP
Atkins/NNP
,/,
a/DT
secretary/NN
from/IN
suburban/JJ
London/NNP
,/,
says/VBZ
./.
Ms./NNP
Atkins/NNP
,/,
whose/WP$
Lloyd/NNP
's/POS
membership/NN
was/VBD
a/DT
bonus/NN
from/IN
a/DT
former/JJ
employer/NN
in/IN
1981/CD
,/,
belongs/VBZ
to/TO
Mr./NNP
Nutting/NNP
's/POS
dissident/JJ
group/NN
on/IN
the/DT
Outhwaite/NNP
syndicate/NN
,/,
which/WDT
has/VBZ
been/VBN
hard/RB
hit/VBN
by/IN
asbestos/NN
reinsurance/NN
claims/NNS
./.
Ms./NNP
Atkins/NNP
,/,
who/WP
underwrote/VBD
#/#
20,000/CD
,/,
or/CC
about/RB
$/$
32,000/CD
,/,
of/IN
insurance/NN
coverage/NN
on/IN
that/DT
syndicate/NN
,/,
now/RB
faces/VBZ
potential/JJ
losses/NNS
of/IN
roughly/RB
#/#
70,000/CD
,/,
or/CC
$/$
111,000/CD
./.
``/``
If/IN
Lloyd/NNP
's/POS
wants/VBZ
#/#
70,000/CD
out/IN
of/IN
me/PRP
they/PRP
will/MD
have/VB
to/TO
take/VB
everything/NN
I/PRP
've/VBP
got/VBD
--/:
and/CC
even/RB
then/RB
I/PRP
do/VBP
n't/RB
know/VB
if/IN
it/PRP
will/MD
be/VB
enough/NN
,/,
''/''
she/PRP
says/VBZ
./.
Unease/NN
is/VBZ
widespread/JJ
among/IN
exchange/NN
members/NNS
./.
``/``
I/PRP
ca/MD
n't/RB
think/VB
of/IN
any/DT
reason/NN
to/TO
join/VB
Lloyd/NNP
's/POS
now/RB
,/,
''/''
says/VBZ
Keith/NNP
Whitten/NNP
,/,
a/DT
British/JJ
businessman/NN
and/CC
a/DT
Lloyd/NNP
's/POS
member/NN
since/IN
1979/CD
./.
``/``
The/DT
downside/NN
is/VBZ
very/RB
considerable/JJ
,/,
and/CC
at/IN
the/DT
moment/NN
the/DT
upside/NN
is/VBZ
very/RB
marginal/JJ
./.
''/''
If/IN
profits/NNS
do/VBP
n't/RB
improve/VB
,/,
Mr./NNP
Whitten/NNP
says/VBZ
he/PRP
may/MD
quit/VB
the/DT
exchange/NN
./.
Meanwhile/RB
,/,
competition/NN
from/IN
rivals/NNS
unencumbered/JJ
by/IN
history/NN
is/VBZ
intensifying/VBG
./.
Lloyd/NNP
's/POS
is/VBZ
being/VBG
squeezed/VBN
out/IN
of/IN
low-margin/JJ
but/CC
more/RBR
consistently/RB
profitable/JJ
product/NN
lines/NNS
such/JJ
as/IN
primary/JJ
property/NN
and/CC
marine/JJ
insurance/NN
./.
Over/IN
the/DT
past/JJ
decade/NN
,/,
competitors/NNS
have/VBP
chipped/VBN
away/RP
at/IN
the/DT
exchange/NN
's/POS
share/NN
of/IN
the/DT
#/#
2.5/CD
billion/CD
marine/JJ
market/NN
in/IN
London/NNP
,/,
where/WRB
half/PDT
the/DT
world/NN
's/POS
ships/NNS
are/VBP
insured/VBN
./.
Lloyd/NNP
's/POS
66/CD
%/NN
stake/NN
in/IN
that/DT
market/NN
has/VBZ
shrunk/VBN
to/TO
50/CD
%/NN
in/IN
that/DT
period/NN
,/,
according/VBG
to/TO
an/DT
official/NN
at/IN
the/DT
Institute/NNP
of/IN
London/NNP
Underwriters/NNP
,/,
a/DT
Lloyd/NNP
's/POS
competitor/NN
./.
The/DT
official/NN
asked/VBD
not/RB
to/TO
be/VB
named/VBN
./.
the/DT
business/NN
has/VBZ
gone/VBN
to/TO
the/DT
institute/NN
,/,
an/DT
association/NN
of/IN
more/JJR
than/IN
100/CD
insurers/NNS
,/,
including/VBG
Cigna/NNP
Corp./NNP
,/,
Allianz/NNP
Versicherungs/NNP
AG/NNP
of/IN
West/NNP
Germany/NNP
and/CC
Britain/NNP
's/POS
Commercial/NNP
Union/NNP
Assurance/NNP
PLC/NNP
./.
Lloyd/NNP
's/POS
has/VBZ
endured/VBN
decades/NNS
of/IN
genteel/JJ
decline/NN
./.
At/IN
the/DT
peak/NN
of/IN
its/PRP$
power/NN
and/CC
influence/VB
a/DT
century/NN
ago/RB
,/,
Lloyd/NNP
's/POS
dominated/VBD
the/DT
insurance/NN
world/NN
with/IN
a/DT
50/CD
%/NN
stake/NN
./.
It/PRP
virtually/RB
dictated/VBD
how/WRB
ships/NNS
were/VBD
to/TO
be/VB
built/VBN
and/CC
it/PRP
monitored/VBD
commerce/NN
through/IN
a/DT
unrivaled/JJ
intelligence/NN
network/NN
in/IN
ports/NNS
around/IN
the/DT
globe/NN
./.
Today/NN
,/,
Lloyd/NNP
's/POS
share/NN
of/IN
the/DT
world/NN
market/NN
,/,
excluding/VBG
life/NN
insurance/NN
,/,
is/VBZ
about/RB
2/CD
%/NN
./.
Its/PRP$
stake/NN
is/VBZ
even/RB
smaller/JJR
if/IN
life/NN
insurance/NN
is/VBZ
included/VBN
./.
Bigger/JJR
rivals/NNS
,/,
such/JJ
as/IN
Aetna/NNP
and/CC
Allianz/NNP
,/,
backed/VBN
by/IN
armies/NNS
of/IN
statisticians/NNS
using/VBG
computers/NNS
in/IN
hundreds/NNS
of/IN
branches/NNS
,/,
operate/VBP
more/RBR
efficiently/RB
and/CC
often/RB
can/MD
offer/VB
lower/JJR
rates/NNS
,/,
brokers/NNS
say/VBP
./.
Though/IN
Lloyd/NNP
's/POS
pioneered/VBD
such/JJ
now-standard/JJ
policies/NNS
as/IN
worker/NN
's/POS
compensation/NN
insurance/NN
,/,
burglary/NN
insurance/NN
for/IN
homeowners/NNS
and/CC
businesses/NNS
,/,
and/CC
bankers/NNS
'/POS
liability/NN
insurance/NN
,/,
competitors/NNS
now/RB
underwrite/VBP
most/JJS
of/IN
that/DT
business/NN
./.
Beyond/IN
that/DT
,/,
many/JJ
big/JJ
oil/NN
,/,
chemical/NN
and/CC
airline/NN
companies/NNS
are/VBP
siphoning/VBG
off/RP
big/JJ
chunks/NNS
of/IN
the/DT
market/NN
by/IN
insuring/VBG
themselves/PRP
through/IN
``/``
captive/JJ
''/''
offshore/JJ
companies/NNS
for/IN
industry-specific/JJ
coverage/NN
./.
Even/RB
Lloyd/NNP
's/POS
specialty/NN
--/:
unusually/RB
risky/JJ
ventures/NNS
--/:
is/VBZ
being/VBG
challenged/VBN
./.
Only/RB
10/CD
years/NNS
ago/RB
,/,
for/IN
instance/NN
,/,
Lloyd/NNP
's/POS
was/VBD
the/DT
pre-eminent/JJ
insurer/NN
of/IN
thoroughbred/JJ
horses/NNS
./.
But/CC
since/IN
1981/CD
,/,
Kirk/NNP
Horse/NNP
Insurance/NNP
Inc./NNP
of/IN
Lexington/NNP
,/,
Ky./NNP
has/VBZ
grabbed/VBN
a/DT
20/CD
%/NN
stake/NN
of/IN
the/DT
market/NN
./.
Ronald/NNP
Kirk/NNP
,/,
president/NN
,/,
says/VBZ
Lloyd/NNP
's/POS
has/VBZ
suffered/VBN
because/IN
its/PRP$
structure/NN
does/VBZ
n't/RB
allow/VB
underwriters/NNS
to/TO
deal/VB
directly/RB
with/IN
clients/NNS
;/:
brokers/NNS
are/VBP
required/VBN
intermediaries/NNS
./.
Thus/RB
,/,
he/PRP
asserts/VBZ
,/,
Lloyd/NNP
's/POS
ca/MD
n't/RB
react/VB
quickly/RB
to/TO
competition/NN
./.
``/``
Lloyd/NNP
's/POS
has/VBZ
lost/VBN
control/NN
of/IN
the/DT
situation/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
They/PRP
are/VBP
n't/RB
controlling/VBG
their/PRP$
destiny/NN
like/IN
they/PRP
used/VBD
to/TO
./.
''/''
Murray/NNP
Lawrence/NNP
,/,
Lloyd/NNP
's/POS
chairman/NN
,/,
agrees/VBZ
the/DT
exchange/NN
faces/VBZ
big/JJ
challenges/NNS
./.
``/``
This/DT
is/VBZ
a/DT
watershed/JJ
time/NN
,/,
and/CC
we/PRP
are/VBP
trying/VBG
to/TO
plot/VB
our/PRP$
way/NN
ahead/RB
,/,
''/''
he/PRP
says/VBZ
./.
``/``
We/PRP
have/VBP
been/VBN
a/DT
great/JJ
market/NN
for/IN
inventing/VBG
risks/NNS
which/WDT
other/JJ
people/NNS
then/RB
take/VBP
,/,
copy/VBP
and/CC
cut/VBP
rates/NNS
./.
''/''
Lloyd/NNP
's/POS
,/,
he/PRP
says/VBZ
,/,
is/VBZ
cut/VBN
off/RP
from/IN
``/``
the/DT
vast/JJ
body/NN
of/IN
premium/NN
down/IN
at/IN
the/DT
bottom/NN
end/NN
which/WDT
acts/VBZ
as/IN
a/DT
steadying/JJ
influence/NN
''/''
against/IN
catastrophic/JJ
losses/NNS
./.
By/IN
that/DT
,/,
he/PRP
means/VBZ
low-margin/JJ
but/CC
low-risk/JJ
products/NNS
such/JJ
as/IN
certain/JJ
types/NNS
of/IN
primary/JJ
property/NN
insurance/NN
./.
The/DT
exchange/NN
,/,
he/PRP
says/VBZ
,/,
must/MD
find/VB
new/JJ
products/NNS
and/CC
new/JJ
markets/NNS
./.
That/DT
wo/MD
n't/RB
be/VB
an/DT
easy/JJ
task/NN
./.
Tradition/NN
is/VBZ
dictator/NN
at/IN
Lloyd/NNP
's/POS
./.
Three/CD
years/NNS
ago/RB
,/,
the/DT
exchange/NN
took/VBD
up/RP
residence/NN
in/IN
a/DT
space-age/JJ
tower/NN
of/IN
steel/NN
and/CC
glass/NN
--/:
evocative/JJ
of/IN
the/DT
kind/NN
of/IN
modern/JJ
architecture/NN
that/IN
Britain/NNP
's/POS
Prince/NNP
Charles/NNP
has/VBZ
denounced/VBN
./.
Some/DT
exchange/NN
wags/NNS
call/VBP
the/DT
building/NN
``/``
the/DT
oil/NN
rig/NN
./.
''/''
)/)
But/CC
along/IN
with/IN
such/JJ
treasured/JJ
artifacts/NNS
as/IN
Lord/NNP
Nelson/NNP
's/POS
spyglass/NN
,/,
Lloyd/NNP
's/VBZ
also/RB
brought/VBD
its/PRP$
outmoded/JJ
ways/NNS
of/IN
doing/VBG
business/NN
./.
The/DT
Lloyd/NNP
's/POS
market/NN
actively/RB
underwrites/VBZ
insurance/NN
just/RB
4/CD
1\/2/CD
hours/NNS
a/DT
day/NN
,/,
brokers/NNS
say/VBP
./.
Underwriting/NN
does/VBZ
n't/RB
get/VB
under/IN
way/NN
until/IN
after/IN
morning/NN
tea/NN
at/IN
10/CD
a.m/RB
./.
A/DT
two-hour/JJ
lunch/NN
break/NN
follows/VBZ
./.
Things/NNS
wind/VBP
down/RP
at/IN
about/RB
4:30/CD
p.m./RB
,/,
just/RB
in/IN
time/NN
for/IN
afternoon/NN
tea/NN
./.
Lloyd/NNP
's/POS
vast/JJ
trading/NN
hall/NN
houses/VBZ
a/DT
warren/NN
of/IN
well-polished/JJ
desks/NNS
./.
The/DT
hall/NN
's/POS
few/JJ
computers/NNS
are/VBP
used/VBN
mostly/RB
to/TO
send/VB
messages/NNS
./.
Sandwiched/VBN
between/IN
desks/NNS
,/,
underwriters/NNS
sit/VBP
on/IN
benches/NNS
surrounded/VBN|JJ
by/IN
stacks/NNS
of/IN
policies/NNS
./.
Brokers/NNS
clutching/VBG
thick/JJ
folders/NNS
stand/VBP
in/IN
lines/NNS
,/,
waiting/VBG
their/PRP$
turn/NN
to/TO
speak/VB
to/TO
the/DT
underwriters/NNS
./.
A/DT
broker/NN
may/MD
have/VB
to/TO
approach/VB
as/RB
many/JJ
as/IN
20/CD
underwriters/NNS
who/WP
insure/VBP
the/DT
endeavors/NNS
on/IN
behalf/NN
of/IN
the/DT
syndicates/NNS
./.
It/PRP
could/MD
take/VB
six/CD
months/NNS
for/IN
a/DT
claim/NN
to/TO
be/VB
paid/VBN
./.
``/``
The/DT
system/NN
,/,
''/''
says/VBZ
Nicholas/NNP
Samengo-Turner/NNP
,/,
a/DT
Lloyd/NN
's/POS
broker/NN
who/WP
left/VBD
the/DT
exchange/NN
in/IN
1985/CD
,/,
``/``
is/VBZ
so/RB
ludicrously/RB
unprofessional/JJ
it/PRP
drives/VBZ
you/PRP
mad/JJ
./.
''/''
Some/DT
maintain/VBP
underwriters/NNS
also/RB
have/VBP
been/VBN
inept/JJ
./.
John/NNP
Wetherell/NNP
,/,
a/DT
Lloyd/NNP
's/POS
underwriter/NN
,/,
says/VBZ
he/PRP
and/CC
his/PRP$
fellow/JJ
underwriters/NNS
underestimated/VBD
by/IN
as/RB
much/JJ
as/IN
50/CD
%/NN
the/DT
premiums/NNS
they/PRP
should/MD
have/VB
charged/VBN
for/IN
property/NN
risks/NNS
from/IN
1980/CD
to/TO
1985/CD
./.
``/``
How/WRB
unprofessional/JJ
we/PRP
must/MD
have/VB
appeared/VBN
to/TO
the/DT
outside/JJ
world/NN
--/:
how/WRB
incompetent/JJ
at/IN
risk/NN
assessment/NN
and/CC
evaluation/NN
,/,
''/''
he/PRP
says/VBZ
./.
Lloyd/NNP
's/POS
officials/NNS
decline/VBP
to/TO
comment/VB
on/IN
the/DT
matter/NN
./.
More/RBR
recently/RB
,/,
property/NN
rates/NNS
have/VBP
increased/VBN
./.
Many/JJ
at/IN
Lloyd/NNP
's/POS
expect/VBP
the/DT
San/NNP
Francisco/NNP
earthquake/NN
will/MD
cause/VB
the/DT
industry/NN
to/TO
boost/VB
rates/NNS
even/RB
further/RBR
./.
But/CC
it/PRP
will/MD
be/VB
years/NNS
before/IN
it/PRP
is/VBZ
clear/JJ
whether/IN
higher/JJR
rates/NNS
will/MD
offset/VB
the/DT
payouts/NNS
for/IN
such/JJ
disasters/NNS
./.
The/DT
magnitude/NN
of/IN
the/DT
exchange/NN
's/POS
problems/NNS
may/MD
not/RB
become/VB
known/VBN
for/IN
some/DT
time/NN
because/IN
of/IN
Lloyd/NNP
's/POS
practice/NN
of/IN
leaving/VBG
the/DT
books/NNS
open/JJ
for/IN
three/CD
years/NNS
to/TO
allow/VB
for/IN
the/DT
settlement/NN
of/IN
claims/NNS
./.
Lloyd/NNP
's/POS
only/RB
recently/RB
reported/VBD
its/PRP$
financial/JJ
results/NNS
for/IN
1986/CD
./.
That/DT
year/NN
,/,
it/PRP
posted/VBD
record/JJ
pretax/JJ
profit/NN
of/IN
#/#
650/CD
million/CD
,/,
a/DT
gain/NN
it/PRP
attributes/VBZ
to/TO
higher/JJR
rates/NNS
and/CC
fewer/JJR
claims/NNS
./.
But/CC
Mr./NNP
Lawrence/NNP
says/VBZ
reported/JJ
profit/NN
will/MD
be/VB
down/RB
in/IN
1987/CD
,/,
1988/CD
and/CC
1989/CD
,/,
though/IN
he/PRP
declines/VBZ
to/TO
specify/VB
how/WRB
steep/JJ
the/DT
decline/NN
will/MD
be/VB
./.
Insurance/NN
analysts/NNS
say/VBP
the/DT
exchange/NN
's/POS
downturn/NN
in/IN
profitability/NN
is/VBZ
likely/JJ
to/TO
be/VB
aggravated/VBN
by/IN
more/JJR
than/IN
$/$
600/CD
million/CD
in/IN
aviation/NN
losses/NNS
the/DT
1988/CD
Pan/NNP
Am/NNP
airline/NN
disaster/NN
over/IN
Lockerbie/NNP
,/,
Scotland/NNP
a/DT
still-uncalculated/JJ
chunk/NN
of/IN
claims/NNS
from/IN
September/NNP
's/POS
Hurricane/NNP
Hugo/NNP
./.
Lloyd/NNP
's/POS
says/VBZ
the/DT
departures/NNS
of/IN
names/NNS
is/VBZ
n't/RB
likely/JJ
to/TO
hurt/VB
its/PRP$
underwriting/NN
capacity/NN
,/,
currently/RB
about/RB
#/#
11/CD
billion/CD
./.
Mr./NNP
Lawrence/NNP
says/VBZ
the/DT
drain/NN
of/IN
funds/NNS
has/VBZ
been/VBN
offset/VBN
by/IN
an/DT
increase/NN
in/IN
investments/NNS
by/IN
the/DT
remaining/VBG
names/NNS
./.
Meanwhile/RB
,/,
the/DT
exchange/NN
has/VBZ
been/VBN
trying/VBG
to/TO
lower/VB
costs/NNS
./.
It/PRP
recently/RB
cut/VBD
its/PRP$
work/NN
force/NN
by/IN
9/CD
%/NN
,/,
or/CC
213/CD
./.
But/CC
Lloyd/NNP
's/POS
is/VBZ
hampered/VBN
in/IN
its/PRP$
efforts/NNS
to/TO
overhaul/VB
operations/NNS
by/IN
its/PRP$
reluctance/NN
to/TO
embrace/VB
modern/JJ
technology/NN
./.
Mr./NNP
Wetherell/NNP
,/,
the/DT
underwriter/NN
,/,
reckons/VBZ
half/NN
of/IN
his/PRP$
business/NN
could/MD
be/VB
transacted/VBN
by/IN
computer/NN
,/,
cutting/VBG
costs/NNS
at/IN
least/JJS
10/CD
%/NN
./.
Though/NNP
Lloyd/NNP
's/POS
has/VBZ
talked/VBN
for/IN
years/NNS
about/IN
computerizing/VBG
underwriting/NN
transactions/NNS
,/,
the/DT
effort/NN
has/VBZ
n't/RB
gotten/VBN
very/RB
far/RB
./.
Competition/NN
among/IN
underwriters/NNS
and/CC
brokers/NNS
makes/VBZ
them/PRP
loath/JJ
to/TO
centralize/VB
price/NN
and/CC
policy/NN
information/NN
./.
Both/DT
groups/NNS
cling/VBP
to/TO
traditional/JJ
face-to-face/JJ
dealings/NNS
,/,
even/RB
for/IN
routine/JJ
policies/NNS
./.
Lloyd/NNP
's/POS
overblown/JJ
bureaucracy/NN
also/RB
hampers/VBZ
efforts/NNS
to/TO
update/VB
marketing/NN
strategies/NNS
./.
Some/DT
underwriters/NNS
have/VBP
been/VBN
pressing/VBG
for/IN
years/NNS
to/TO
tap/VB
the/DT
low-margin/JJ
business/NN
by/IN
selling/VBG
some/DT
policies/NNS
directly/RB
to/TO
consumers/NNS
./.
Lloyd/NNP
's/POS
presently/RB
sells/VBZ
only/JJ
auto/NN
insurance/NN
directly/RB
to/TO
the/DT
public/NN
,/,
and/CC
such/JJ
policies/NNS
are/VBP
sold/VBN
only/RB
in/IN
limited/JJ
markets/NNS
such/JJ
as/IN
the/DT
U.K./NNP
and/CC
Canada/NNP
./.
But/CC
such/JJ
changes/NNS
must/MD
be/VB
cleared/VBN
by/IN
four/CD
internal/JJ
committees/NNS
and/CC
dozens/NNS
of/IN
underwriters/NNS
,/,
brokers/NNS
and/CC
administrators/NNS
before/IN
being/VBG
implemented/VBN
./.
The/DT
proposal/NN
to/TO
sell/VB
directly/RB
to/TO
the/DT
public/NN
remains/VBZ
mired/VBN
in/IN
bureaucratic/JJ
quicksand/NN
./.
Lloyd/NNP
's/POS
is/VBZ
moving/VBG
forward/RB
on/IN
some/DT
fronts/NNS
,/,
though/RB
./.
Mr./NNP
Lawrence/NNP
says/VBZ
the/DT
exchange/NN
is/VBZ
updating/VBG
some/DT
procedures/NNS
to/TO
make/VB
speedier/JJR
payments/NNS
on/IN
claims/NNS
./.
By/IN
next/JJ
year/NN
,/,
all/DT
underwriters/NNS
will/MD
be/VB
linked/VBN
to/TO
a/DT
communications/NNS
network/NN
that/WDT
could/MD
reduce/VB
paper/NN
work/NN
on/IN
claims/NNS
./.
Japan/NNP
's/POS
Daiwa/NNP
Securities/NNP
Co./NNP
named/VBD
Masahiro/NNP
Dozen/NNP
president/NN
./.
Mr./NNP
Dozen/NNP
succeeds/VBZ
Sadakane/NNP
Doi/NNP
,/,
who/WP
will/MD
become/VB
vice/NN
chairman/NN
./.
Yoshitoki/NNP
Chino/NNP
retains/VBZ
his/PRP$
title/NN
of/IN
chairman/NN
of/IN
Daiwa/NNP
,/,
Japan/NNP
's/POS
second-largest/JJ
securities/NNS
firm/NN
./.
In/IN
Japanese/JJ
firms/NNS
,/,
the/DT
president/NN
usually/RB
is/VBZ
in/IN
charge/NN
of/IN
day-to-day/JJ
operations/NNS
,/,
while/IN
the/DT
chairman/NN
's/POS
role/NN
is/VBZ
more/RBR
a/DT
ceremonial/JJ
one/NN
./.
The/DT
title/NN
of/IN
chief/JJ
executive/JJ
officer/NN
is/VBZ
n't/RB
used/VBN
./.
While/IN
people/NNS
within/IN
Daiwa/NNP
,/,
particularly/RB
internationalists/NNS
,/,
expected/VBD
that/IN
Mr./NNP
Dozen/NNP
,/,
52/CD
,/,
would/MD
eventually/RB
become/VB
Daiwa/NNP
's/POS
president/NN
,/,
the/DT
speed/NN
of/IN
his/PRP$
promotion/NN
surprised/VBD
many/JJ
./.
It/PRP
was/VBD
only/RB
earlier/RBR
this/DT
year/NN
that/IN
the/DT
jovial/JJ
,/,
easygoing/JJ
executive/NN
--/:
he/PRP
likes/VBZ
to/TO
joke/VB
with/IN
Americans/NNPS
about/IN
how/WRB
his/PRP$
name/NN
is/VBZ
synonymous/JJ
with/IN
twelve/CD
--/:
was/VBD
appointed/VBN
deputy/JJ
president/NN
./.
Mr./NNP
Dozen/NNP
is/VBZ
taking/VBG
over/RP
the/DT
reins/NNS
of/IN
a/DT
securities/NNS
company/NN
that/WDT
does/VBZ
very/RB
well/RB
in/IN
its/PRP$
domestic/JJ
market/NN
but/CC
that/DT
is/VBZ
still/RB
seeking/VBG
to/TO
realize/VB
its/PRP$
potential/NN
in/IN
global/JJ
investment/NN
banking/NN
and/CC
securities/NNS
dealing/NN
./.
Daiwa/NNP
is/VBZ
one/CD
of/IN
the/DT
world/NN
's/POS
largest/JJS
securities/NNS
firms/NNS
./.
As/IN
of/IN
March/NNP
31/CD
,/,
the/DT
Daiwa/NNP
group/NN
had/VBD
shareholder/NN
equity/NN
of/IN
801.21/CD
billion/CD
yen/NN
$/$
5.64/CD
billion/CD
For/IN
the/DT
six/CD
months/NNS
ended/VBN
Sept./NNP
30/CD
,/,
Daiwa/NNP
reported/VBD
unconsolidated/JJ
(/(
parent/JJ
company/NN
net/JJ
income/NN
of/IN
79.03/CD
billion/CD
yen/NN
$/$
556.5/CD
million/CD
revenue/NN
of/IN
332.38/CD
billion/CD
yen/NN
$/$
2.34/CD
billion/CD
Both/DT
figures/NNS
were/VBD
record/JJ
highs/NNS
./.
Several/JJ
observers/NNS
interpreted/VBD
Mr./NNP
Dozen/NNP
's/POS
appointment/NN
as/IN
an/DT
attempt/NN
by/IN
Daiwa/NNP
to/TO
make/VB
its/PRP$
international/JJ
operations/NNS
more/RBR
profitable/JJ
while/IN
preparing/VBG
the/DT
firm/NN
for/IN
the/DT
effects/NNS
of/IN
the/DT
continuing/JJ
deregulation/NN
of/IN
Japan/NNP
's/POS
domestic/JJ
markets/NNS
,/,
which/WDT
should/MD
mean/VB
increased/JJ
competition/NN
./.
All/DT
of/IN
Japan/NNP
's/POS
so-called/JJ
Big/NNP
Four/CD
securities/NNS
firms/NNS
--/:
Nomura/NNP
Securities/NNP
Co./NNP
Ltd./NNP
,/,
the/DT
world/NN
's/POS
largest/JJS
,/,
Nikko/NNP
Securities/NNP
Co./NNP
Ltd./NNP
,/,
Yamaichi/NNP
Securities/NNP
Co./NNP
Ltd./NNP
and/CC
Daiwa/NNP
--/:
have/VBP
suffered/VBN
setbacks/NNS
in/IN
their/PRP$
attempts/NNS
to/TO
break/VB
into/IN
foreign/JJ
markets/NNS
./.
While/IN
they/PRP
have/VBP
moved/VBN
to/TO
the/DT
fore/NN
in/IN
underwriting/VBG
fixed-income/JJ
securities/NNS
in/IN
the/DT
Eurobond/NNP
market/NN
--/:
mostly/RB
for/IN
Japanese/JJ
firms/NNS
--/:
they/PRP
have/VBP
been/VBN
only/RB
marginally/RB
profitable/JJ
,/,
if/IN
at/IN
all/DT
,/,
in/IN
the/DT
U.S/NNP
./.
American/JJ
institutional/JJ
investors/NNS
have/VBP
never/RB
had/VBD
a/DT
large/JJ
appetite/NN
for/IN
Japanese/JJ
equities/NNS
./.
And/CC
while/IN
the/DT
Japanese/NNPS
have/VBP
stepped/VBN
up/RP
their/PRP$
purchases/NNS
of/IN
U.S./NNP
shares/NNS
in/IN
the/DT
past/JJ
several/JJ
months/NNS
,/,
they/PRP
have/VBP
shown/VBN
themselves/PRP
in/IN
the/DT
past/NN
to/TO
be/VB
fickle/JJ
investors/NNS
./.
At/IN
the/DT
same/JJ
time/NN
,/,
Daiwa/NNP
and/CC
its/PRP$
brethren/NNS
have/VBP
faced/VBN
stiff/JJ
competition/NN
from/IN
well-entrenched/JJ
American/JJ
competitors/NNS
that/WDT
have/VBP
prevented/VBN
them/PRP
from/IN
building/VBG
strong/JJ
links/NNS
to/TO
U.S./NNP
corporations/NNS
and/CC
institutional/JJ
investors/NNS
./.
Mr./NNP
Dozen/NNP
knows/VBZ
these/DT
problems/NNS
firsthand/RB
./.
When/WRB
he/PRP
arrived/VBD
in/IN
the/DT
U.S./NNP
in/IN
1969/CD
--/:
the/DT
start/NN
of/IN
an/DT
eight-year/JJ
tour/NN
--/:
he/PRP
tried/VBD
selling/VBG
Japanese/JJ
yen-denominated/JJ
bonds/NNS
to/TO
U.S./NNP
investors/NNS
./.
``/``
He/PRP
made/VBD
desperate/JJ
efforts/NNS
,/,
using/VBG
the/DT
yellow/JJ
pages/NNS
from/IN
beginning/NN
to/TO
end/NN
,/,
''/''
said/VBD
Koji/NNP
Yoneyama/NNP
,/,
president/NN
of/IN
Daiwa/NN
's/POS
U.S./NNP
unit/NN
./.
``/``
But/CC
not/RB
a/DT
single/JJ
piece/NN
of/IN
paper/NN
was/VBD
sold/VBN
./.
''/''
By/IN
his/PRP$
own/JJ
account/NN
,/,
Mr./NNP
Dozen/NNP
did/VBD
n't/RB
do/VB
much/RB
better/RBR
with/IN
U.S./NNP
bonds/NNS
./.
In/IN
an/DT
interview/NN
a/DT
few/JJ
months/NNS
ago/RB
,/,
he/PRP
recalled/VBD
how/WRB
after/IN
some/DT
training/NN
at/IN
Salomon/NNP
Brothers/NNP
Inc./NNP
,/,
he/PRP
successfully/RB
bid/VBD
for/IN
the/DT
opportunity/NN
to/TO
sell/VB
portions/NNS
of/IN
20/CD
U.S./NNP
corporate/JJ
bond/NN
issues/NNS
./.
But/CC
he/PRP
could/MD
n't/RB
sell/VB
any/DT
./.
``/``
Japanese/JJ
stock/NN
salesmen/NNS
selling/VBG
American/JJ
bonds/NNS
?/.
Maybe/RB
it/PRP
's/VBZ
crazy/JJ
,/,
''/''
he/PRP
said/VBD
./.
Mr./NNP
Dozen/NNP
even/RB
related/VBD
the/DT
indignity/NN
suffered/VBN
when/WRB
he/PRP
and/CC
two/CD
colleagues/NNS
went/VBD
on/IN
an/DT
overnight/JJ
fishing/NN
expedition/NN
off/IN
the/DT
New/NNP
Jersey/NNP
shore/NN
and/CC
caught/VBD
nothing/NN
./.
Upon/IN
returning/VBG
to/TO
New/NNP
York/NNP
,/,
``/``
Exhausted/JJ
,/,
I/PRP
got/VBD
into/IN
a/DT
taxicab/NN
,/,
and/CC
the/DT
woman/NN
driver/NN
said/VBD
:/:
`/``
Americans/NNPS
make/VBP
better/JJR
fishermen/NNS
,/,
'/''
''/''
he/PRP
recalled/VBD
./.
Undaunted/JJ
,/,
Mr./NNP
Dozen/NNP
said/VBD
that/DT
Daiwa/NNP
's/POS
goal/NN
is/VBZ
to/TO
build/VB
``/``
a/DT
high-technology/NN
oriented/JJ
international/JJ
organization/NN
with/IN
maybe/RB
some/DT
Japanese/JJ
flavor/NN
to/TO
it/PRP
./.
''/''
He/PRP
said/VBD
that/IN
he/PRP
was/VBD
particularly/RB
interested/JJ
in/IN
his/PRP$
firm/NN
gaining/VBG
expertise/NN
in/IN
futures/NNS
,/,
options/NNS
,/,
mortgaged-backed/JJ
securities/NNS
,/,
computerized/JJ
trading/NN
and/CC
investment/NN
systems/NNS
as/RB
well/RB
as/IN
mergers/NNS
and/CC
acquisitions/NNS
./.
Mr./NNP
Dozen/NNP
said/VBD
Daiwa/NNP
's/POS
strengths/NNS
were/VBD
its/PRP$
large/JJ
capital/NN
base/NN
,/,
its/PRP$
influential/JJ
position/NN
in/IN
the/DT
Tokyo/NNP
market/NN
and/CC
its/PRP$
links/NNS
to/TO
Japanese/JJ
corporations/NNS
and/CC
institutional/JJ
investors/NNS
./.
Mr./NNP
Dozen/NNP
joined/VBD
Daiwa/NNP
upon/IN
his/PRP$
graduation/NN
from/IN
Kyoto/NNP
University/NNP
in/IN
1959/CD
./.
Like/IN
many/JJ
young/JJ
recruits/NNS
in/IN
Japanese/JJ
securities/NNS
firms/NNS
,/,
he/PRP
began/VBD
his/PRP$
career/NN
peddling/VBG
stock/NN
to/TO
individual/JJ
investors/NNS
./.
In/IN
his/PRP$
climb/NN
to/TO
the/DT
top/NN
,/,
Mr./NNP
Dozen/NNP
also/RB
headed/VBD
the/DT
company/NN
's/POS
stock-exchange/NN
division/NN
,/,
its/PRP$
fixed-income/NN
units/NNS
and/CC
its/PRP$
international/JJ
operations/NNS
./.
``/``
He/PRP
was/VBD
constantly/RB
picking/VBG
up/RP
new/JJ
things/NNS
to/TO
fill/VB
out/RP
his/PRP$
experience/NN
;/:
he/PRP
is/VBZ
very/RB
well-balanced/JJ
,/,
''/''
said/VBD
Takuro/NNP
Isoda/NNP
,/,
chairman/NN
of/IN
Daiwa/NNP
's/POS
U.S./NNP
unit/NN
in/IN
New/NNP
York/NNP
./.
But/CC
it/PRP
Mr./NNP
Dozen/NNP
's/POS
experience/NN
as/IN
a/DT
salesman/NN
that/WDT
enabled/VBD
him/PRP
to/TO
gain/VB
the/DT
political/JJ
support/NN
--/:
particularly/RB
from/IN
the/DT
retail/JJ
sales/NNS
force/NN
--/:
to/TO
accede/VB
to/TO
the/DT
presidency/NN
./.
Commission/NN
income/NN
from/IN
domestic/JJ
stock/NN
and/CC
bond/NN
sales/NNS
accounts/NNS
form/VBP
a/DT
large/JJ
portion/NN
of/IN
Japanese/JJ
securities/NNS
companies/NNS
'/POS
earnings/NNS
./.
And/CC
anybody/NN
who/WP
lacked/VBD
the/DT
backing/NN
of/IN
the/DT
retail/JJ
sales/NNS
force/NN
``/``
would/MD
be/VB
fragile/JJ
,/,
''/''
said/VBD
a/DT
Daiwa/NNP
executive/NN
./.
If/IN
Mr./NNP
Dozen/NNP
has/VBZ
a/DT
weakness/NN
,/,
it/PRP
may/MD
be/VB
his/PRP$
golf/NN
game/NN
./.
``/``
He/PRP
digs/VBZ
in/IN
the/DT
sand/NN
instead/RB
of/IN
hitting/VBG
the/DT
ball/NN
,/,
like/IN
a/DT
farmer/NN
,/,
''/''
said/VBD
Mr./NNP
Yoneyama/NNP
./.
Inco/NNP
Ltd./NNP
posted/VBD
a/DT
35/CD
%/NN
decline/NN
in/IN
third-quarter/JJ
net/JJ
income/NN
,/,
a/DT
performance/NN
that/WDT
was/VBD
in/IN
line/NN
with/IN
analysts/NNS
'/POS
expectations/NNS
./.
The/DT
nickel/NN
producer/NN
also/RB
raised/VBD
its/PRP$
quarterly/JJ
dividend/NN
to/TO
25/CD
cents/NNS
a/DT
share/NN
from/IN
20/CD
cents/NNS
and/CC
said/VBD
it/PRP
may/MD
buy/VB
back/RP
as/RB
much/JJ
as/IN
4.8/CD
%/NN
of/IN
its/PRP$
common/JJ
outstanding/JJ
./.
Inco/NNP
shares/NNS
fell/VBD
after/IN
the/DT
announcements/NNS
./.
Analysts/NNS
said/VBD
some/DT
investors/NNS
were/VBD
disappointed/JJ
that/IN
the/DT
cash-rich/JJ
company/NN
had/VBD
failed/VBN
to/TO
announce/VB
a/DT
special/JJ
dividend/NN
./.
Inco/NNP
closed/VBD
at/IN
$/$
31.125/CD
a/DT
share/NN
,/,
down/RB
62.5/CD
cents/NNS
,/,
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
Some/DT
analysts/NNS
said/VBD
Inco/NNP
,/,
which/WDT
had/VBD
cash/NN
reserves/NNS
of/IN
$/$
272/CD
million/CD
as/IN
of/IN
Sept./NNP
30/CD
,/,
could/MD
still/RB
announce/VB
a/DT
special/JJ
dividend/NN
in/IN
the/DT
next/JJ
few/JJ
months/NNS
,/,
though/IN
it/PRP
would/MD
be/VB
smaller/JJR
than/IN
the/DT
$/$
10-a-share/JJ
special/JJ
dividend/NN
it/PRP
paid/VBD
last/JJ
year/NN
./.
The/DT
quarterly/JJ
dividend/NN
is/VBZ
payable/JJ
Dec./NNP
1/CD
to/TO
shares/NNS
of/IN
record/NN
Nov./NNP
3/CD
./.
Inco/NNP
's/POS
net/NN
fell/VBD
to/TO
$/$
129.3/CD
million/CD
,/,
or/CC
$/$
1.23/CD
a/DT
share/NN
,/,
in/IN
the/DT
third/JJ
quarter/NN
from/IN
$/$
200.3/CD
million/CD
,/,
or/CC
$/$
1.88/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
rose/VBD
8.2/CD
%/NN
to/TO
$/$
848.7/CD
million/CD
from/IN
$/$
784.5/CD
million/CD
./.
Excluding/VBG
special/JJ
gains/NNS
from/IN
tax-loss/JJ
carry-forwards/NNS
,/,
earnings/NNS
in/IN
the/DT
latest/JJS
quarter/NN
were/VBD
$/$
117.7/CD
million/CD
,/,
or/CC
$/$
1.12/CD
a/DT
share/NN
,/,
compared/VBN
with/IN
$/$
187.4/CD
million/CD
,/,
or/CC
$/$
1.76/CD
a/DT
share/NN
./.
Inco/NNP
said/VBD
the/DT
drop/NN
in/IN
earnings/NNS
resulted/VBD
mainly/RB
from/IN
lower/JJR
nickel/NN
prices/NNS
for/IN
the/DT
period/NN
and/CC
a/DT
temporary/JJ
cut/NN
in/IN
nickel/JJ
output/NN
at/IN
the/DT
company/NN
's/POS
Manitoba/NNP
operations/NNS
due/JJ
to/TO
high/JJ
levels/NNS
of/IN
arsenic/NN
in/IN
the/DT
ore/NN
./.
Inco/NNP
said/VBD
it/PRP
plans/VBZ
to/TO
buy/VB
back/RP
as/RB
many/JJ
as/IN
five/CD
million/CD
common/JJ
shares/NNS
over/IN
the/DT
next/JJ
12/CD
months/NNS
if/IN
nickel/NN
market/NN
conditions/NNS
are/VBP
favorable/JJ
./.
Under/IN
a/DT
previous/JJ
buyback/JJ
program/NN
,/,
Inco/NNP
has/VBZ
purchased/VBN
1.7/CD
million/CD
of/IN
its/PRP$
shares/NNS
since/IN
April/NNP
./.
UAL/NNP
Corp./NNP
's/POS
board/NN
quashed/VBD
any/DT
prospects/NNS
for/IN
an/DT
immediate/JJ
revival/NN
of/IN
a/DT
labor-management/JJ
buy-out/JJ
,/,
saying/VBG
United/NNP
Airlines/NNP
'/POS
parent/NN
should/MD
remain/VB
independent/JJ
for/IN
now/RB
./.
As/IN
a/DT
result/NN
,/,
UAL/NNP
's/POS
chairman/NN
,/,
Stephen/NNP
M./NNP
Wolf/NNP
,/,
pulled/VBD
out/IN
of/IN
the/DT
buy-out/NN
effort/NN
to/TO
focus/VB
on/IN
running/VBG
the/DT
company/NN
./.
The/DT
two/CD
developments/NNS
put/VBD
the/DT
acquisition/NN
attempt/NN
back/RB
to/TO
square/NN
one/CD
and/CC
leaves/VBZ
the/DT
airline/NN
with/IN
an/DT
array/NN
of/IN
unresolved/JJ
matters/NNS
,/,
including/VBG
an/DT
unsettled/JJ
labor/NN
situation/NN
and/CC
a/DT
management/NN
scrambling/VBG
to/TO
restore/VB
its/PRP$
damaged/JJ
credibility/NN
./.
The/DT
effort/NN
to/TO
create/VB
the/DT
nation/NN
's/POS
largest/JJS
employee-owned/JJ
company/NN
began/VBD
unraveling/VBG
Oct./NNP
13/CD
when/WRB
the/DT
labor-management/JJ
group/NN
was/VBD
unable/JJ
to/TO
obtain/VB
financing/NN
for/IN
its/PRP$
$/$
300-a-share/JJ
,/,
$/$
6.79/CD
billion/CD
offer/NN
./.
Just/RB
last/JJ
week/NN
it/PRP
suffered/VBD
another/DT
major/JJ
setback/NN
when/WRB
British/NNP
Airways/NNP
PLC/NNP
,/,
the/DT
largest/JJS
equity/NN
investor/NN
in/IN
the/DT
labor-management/JJ
bid/NN
,/,
withdrew/VBD
its/PRP$
support/NN
./.
Takeover/NN
stock/NN
traders/NNS
,/,
focusing/VBG
on/IN
the/DT
company/NN
's/POS
intention/NN
to/TO
stay/VB
independent/JJ
,/,
took/VBD
the/DT
announcement/NN
as/IN
bad/JJ
news/NN
./.
UAL/NNP
,/,
which/WDT
had/VBD
risen/VBN
$/$
9.875/CD
to/TO
$/$
178.375/CD
in/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
on/IN
reports/NNS
of/IN
a/DT
new/JJ
bid/NN
being/NN
prepared/VBN
by/IN
the/DT
group/NN
,/,
reversed/VBD
course/NN
and/CC
plummeted/VBD
in/IN
off-exchange/JJ
trading/NN
after/IN
the/DT
5:09/CD
p.m./RB
EDT/NNP
announcement/NN
./.
Among/IN
the/DT
first/JJ
trades/NNS
reported/VBN
by/IN
the/DT
securities/NNS
firm/NN
of/IN
Jefferies/NNP
&/CC
Co./NNP
,/,
which/WDT
makes/VBZ
a/DT
market/NN
in/IN
UAL/NNP
after/IN
the/DT
exchange/NN
is/VBZ
closed/VBN
,/,
were/VBD
10,000/CD
shares/NNS
at/IN
$/$
170/CD
,/,
6,000/CD
shares/NNS
at/IN
$/$
162/CD
,/,
2,500/CD
at/IN
$/$
162/CD
,/,
and/CC
10,000/CD
at/IN
$/$
158/CD
./.
The/DT
rebound/NN
in/IN
UAL/NNP
stock/NN
during/IN
regular/JJ
trading/NN
hours/NNS
Monday/NNP
was/VBD
its/PRP$
first/RB
daily/JJ
gain/NN
after/IN
six/CD
consecutive/JJ
losses/NNS
left/VBD
the/DT
price/NN
41/CD
%/NN
below/IN
its/PRP$
level/NN
before/IN
Oct./NNP
13/CD
,/,
the/DT
day/NN
the/DT
group/NN
announced/VBD
the/DT
bank/NN
financing/NN
could/MD
n't/RB
be/VB
obtained/VBN
for/IN
the/DT
original/JJ
deal/NN
./.
Twelve/CD
of/IN
UAL/NNP
's/POS
outside/JJ
directors/NNS
met/VBD
at/IN
a/DT
five-hour/JJ
meeting/NN
yesterday/NN
in/IN
Chicago/NNP
to/TO
consider/VB
an/DT
informal/JJ
proposal/NN
from/IN
the/DT
buy-out/NN
group/NN
for/IN
a/DT
revised/JJ
bid/NN
./.
But/CC
the/DT
board/NN
said/VBD
it/PRP
was/VBD
n't/RB
interested/JJ
for/IN
now/RB
./.
That/DT
proposal/NN
,/,
valued/VBN
at/IN
between/IN
$/$
225/CD
and/CC
$/$
240/CD
a/DT
share/NN
,/,
would/MD
have/VB
transferred/VBN
majority/NN
ownership/NN
to/TO
employees/NNS
while/IN
leaving/VBG
some/DT
stock/NN
in/IN
public/JJ
hands/NNS
./.
The/DT
buy-out/NN
group/NN
had/VBD
no/DT
firm/JJ
financing/NN
for/IN
the/DT
plan/NN
./.
And/CC
,/,
with/IN
no/DT
other/JJ
offers/NNS
on/IN
the/DT
table/NN
,/,
the/DT
board/NN
apparently/RB
felt/VBD
no/DT
pressure/NN
to/TO
act/VB
on/IN
it/PRP
./.
The/DT
directors/NNS
signaled/VBD
,/,
however/RB
,/,
that/IN
they/PRP
would/MD
be/VB
willing/JJ
to/TO
consider/VB
future/JJ
offers/NNS
or/CC
take/VB
some/DT
other/JJ
action/NN
to/TO
maximize/VB
shareholder/NN
value/NN
,/,
saying/VBG
they/PRP
would/MD
continue/VB
to/TO
explore/VB
``/``
all/DT
strategic/JJ
and/CC
financial/JJ
alternatives/NNS
./.
''/''
But/CC
it/PRP
was/VBD
clear/JJ
that/IN
for/IN
the/DT
time/NN
being/JJ
,/,
the/DT
board/NN
wants/VBZ
the/DT
company/NN
to/TO
return/VB
to/TO
normalcy/NN
./.
The/DT
board/NN
said/VBD
it/PRP
concluded/VBD
that/IN
``/``
the/DT
welfare/NN
of/IN
the/DT
company/NN
,/,
its/PRP$
shareholders/NNS
,/,
its/PRP$
employees/NNS
and/CC
the/DT
broader/JJR
public/NN
.../:
can/MD
best/RB
be/VB
enhanced/VBN
by/IN
continued/JJ
development/NN
of/IN
UAL/NNP
as/IN
a/DT
strong/JJ
,/,
viable/JJ
,/,
independent/JJ
company/NN
./.
''/''
Mr./NNP
Wolf/NNP
urged/VBD
all/DT
employees/NNS
to/TO
``/``
now/RB
turn/VB
their/PRP$
full/JJ
attention/NN
''/''
to/TO
operating/VBG
the/DT
airline/NN
./.
He/PRP
also/RB
vowed/VBD
to/TO
``/``
make/VB
every/DT
effort/NN
to/TO
nurture/VB
.../:
a/DT
constructive/JJ
new/JJ
relationship/NN
that/WDT
has/VBZ
been/VBN
forged/VBN
with/IN
participating/VBG
employee/NN
groups/NNS
./.
''/''
But/CC
Mr./NNP
Wolf/NNP
faces/VBZ
a/DT
monumental/JJ
task/NN
in/IN
pulling/VBG
the/DT
company/NN
back/RB
together/RB
again/RB
./.
Labor/NN
problems/NNS
top/VBP
the/DT
list/NN
./.
For/IN
a/DT
brief/JJ
time/NN
,/,
the/DT
buy-out/NN
effort/NN
seemed/VBD
to/TO
solve/VB
his/PRP$
problems/NNS
with/IN
United/NNP
's/POS
pilot/NN
union/NN
./.
In/IN
return/NN
for/IN
an/DT
ownership/NN
stake/NN
in/IN
the/DT
company/NN
,/,
the/DT
pilots/NNS
were/VBD
willing/JJ
to/TO
agree/VB
to/TO
a/DT
seven-year/JJ
contract/NN
that/WDT
included/VBD
a/DT
no-strike/JJ
clause/NN
and/CC
significant/JJ
wage/NN
concessions/NNS
and/CC
productivity/NN
gains/NNS
the/DT
union/NN
previously/RB
resisted/VBD
./.
That/DT
contract/NN
was/VBD
tied/VBN
to/TO
the/DT
success/NN
of/IN
the/DT
buy-out/NN
./.
As/IN
a/DT
``/``
good-will/NN
measure/NN
,/,
''/''
the/DT
pilots/NNS
had/VBD
been/VBN
working/VBG
four/CD
extra/JJ
hours/NNS
a/DT
month/NN
and/CC
had/VBD
agreed/VBN
to/TO
fly/VB
UAL/NNP
's/POS
two/CD
new/JJ
Boeing/NNP
747-400/NNP
aircraft/NN
./.
It/PRP
's/VBZ
uncertain/JJ
if/IN
the/DT
pilots/NNS
will/MD
continue/VB
to/TO
do/VB
so/RB
without/IN
a/DT
contract/NN
settlement/NN
./.
The/DT
union/NN
said/VBD
late/RB
last/JJ
night/NN
that/IN
it/PRP
is/VBZ
still/RB
committed/JJ
to/TO
majority/NN
employee/NN
ownership/NN
and/CC
that/IN
the/DT
labor/NN
disputes/NNS
that/WDT
faced/VBD
the/DT
company/NN
prior/RB
to/TO
the/DT
buy-out/NN
effort/NN
``/``
still/RB
need/VBP
to/TO
be/VB
addressed/VBN
./.
''/''
The/DT
buy-out/NN
effort/NN
also/RB
worsened/VBD
already-strained/JJ
relations/NNS
between/IN
United/NNP
's/POS
pilot/NN
and/CC
machinist/NN
unions/NNS
./.
The/DT
machinists/NNS
'/POS
criticisms/NNS
of/IN
the/DT
labor-management/JJ
bid/NN
and/CC
their/PRP$
threats/NNS
of/IN
a/DT
strike/NN
unless/IN
they/PRP
received/VBD
substantial/JJ
wage/NN
increases/NNS
this/DT
year/NN
helped/VBD
cool/VB
banks/NNS
'/POS
interest/NN
in/IN
financing/VBG
the/DT
transaction/NN
./.
The/DT
machinists/NNS
previously/RB
had/VBD
shown/VBN
themselves/PRP
to/TO
be/VB
an/DT
ally/NN
to/TO
Mr./NNP
Wolf/NNP
,/,
but/CC
he/PRP
lost/VBD
much/JJ
of/IN
his/PRP$
credibility/NN
with/IN
that/DT
group/NN
when/WRB
he/PRP
teamed/VBD
up/RP
with/IN
the/DT
pilot/NN
union/NN
./.
The/DT
machinists/NNS
criticized/VBD
the/DT
terms/NNS
Mr./NNP
Wolf/NNP
and/CC
management/NN
received/VBD
in/IN
the/DT
buy-out/NN
./.
They/PRP
paid/VBD
$/$
15/CD
million/CD
for/IN
a/DT
1/CD
%/NN
stake/NN
and/CC
received/VBD
an/DT
additional/JJ
9/CD
%/NN
of/IN
the/DT
company/NN
at/IN
no/DT
additional/JJ
cost/NN
./.
His/PRP$
credibility/NN
is/VBZ
also/RB
on/IN
the/DT
line/NN
in/IN
the/DT
investment/NN
community/NN
./.
Until/IN
the/DT
collapse/NN
of/IN
this/DT
bid/NN
,/,
Mr./NNP
Wolf/NNP
was/VBD
regarded/VBN
as/IN
one/CD
of/IN
the/DT
nation/NN
's/POS
savviest/JJS
airline/NN
executives/NNS
after/IN
engineering/NN
turnarounds/NNS
of/IN
Tiger/NNP
International/NNP
Inc./NNP
and/CC
Republic/NNP
Airlines/NNP
./.
But/CC
he/PRP
and/CC
his/PRP$
chief/JJ
financial/JJ
officer/NN
,/,
John/NNP
Pope/NNP
,/,
sowed/VBD
some/DT
of/IN
the/DT
seeds/NNS
for/IN
the/DT
deal/NN
's/POS
failure/NN
by/IN
insisting/VBG
banks/NNS
accept/VB
low/JJ
financing/NN
fees/NNS
and/CC
interest/NN
rates/NNS
,/,
while/IN
they/PRP
invested/VBD
in/IN
the/DT
transaction/NN
only/RB
a/DT
small/JJ
fraction/NN
of/IN
the/DT
$/$
114.3/CD
million/CD
they/PRP
stood/VBD
to/TO
gain/VB
from/IN
sale/NN
of/IN
their/PRP$
UAL/NNP
stock/NN
and/CC
options/NNS
./.
The/DT
board/NN
's/POS
actions/NNS
leave/VBP
takeover/NN
stock/NN
traders/NNS
nursing/VBG
some/RB
$/$
700/CD
million/CD
in/IN
losses/NNS
and/CC
eager/JJ
to/TO
respond/VB
to/TO
anyone/NN
who/WP
might/MD
make/VB
a/DT
new/JJ
offer/NN
./.
It/PRP
also/RB
inevitably/RB
leaves/VBZ
a/DT
residue/NN
of/IN
shareholder/NN
lawsuits/NNS
./.
Arbitragers/NNS
said/VBD
they/PRP
were/VBD
disappointed/JJ
the/DT
company/NN
did/VBD
n't/RB
announce/VB
some/DT
recapitalization/NN
or/CC
other/JJ
plan/NN
to/TO
maximize/VB
value/NN
./.
One/CD
takeover/NN
expert/NN
noted/VBD
that/IN
arbitragers/NNS
could/MD
force/VB
a/DT
recapitalization/NN
through/IN
the/DT
written/JJ
consent/NN
process/NN
under/IN
which/WDT
holders/NNS
may/MD
oust/VB
the/DT
board/NN
by/IN
a/DT
majority/NN
vote/NN
./.
The/DT
machinists/NNS
union/NN
has/VBZ
suggested/VBN
it/PRP
may/MD
propose/VB
a/DT
recapitalization/NN
that/WDT
includes/VBZ
a/DT
special/JJ
dividend/NN
for/IN
holders/NNS
and/CC
a/DT
minority/NN
ownership/NN
stake/NN
for/IN
employees/NNS
./.
Los/NNP
Angeles/NNP
investor/NN
Marvin/NNP
Davis/NNP
,/,
whose/WP$
$/$
240-a-share/JJ
offer/NN
for/IN
UAL/NNP
in/IN
August/NNP
triggered/VBD
a/DT
bidding/NN
war/NN
,/,
says/VBZ
he/PRP
remains/VBZ
interested/JJ
in/IN
the/DT
airline/NN
./.
However/RB
,/,
he/PRP
is/VBZ
restricted/VBN
from/IN
making/VBG
certain/JJ
hostile/JJ
moves/NNS
by/IN
an/DT
agreement/NN
he/PRP
signed/VBD
to/TO
obtain/VB
confidential/JJ
UAL/NNP
data/NNS
./.
Essentially/RB
,/,
he/PRP
ca/MD
n't/RB
make/VB
any/DT
hostile/JJ
moves/NNS
unless/IN
he/PRP
makes/VBZ
a/DT
tender/NN
offer/NN
at/IN
least/JJS
$/$
300/CD
a/DT
share/NN
./.
Tandy/NNP
Corp./NNP
said/VBD
it/PRP
wo/MD
n't/RB
join/VB
U.S./NNP
Memories/NNP
,/,
the/DT
group/NN
that/WDT
seeks/VBZ
to/TO
battle/VB
the/DT
Japanese/NNPS
in/IN
the/DT
market/NN
for/IN
computer/NN
memory/NN
chips/NNS
./.
Tandy/NNP
's/POS
decision/NN
is/VBZ
a/DT
second/JJ
setback/NN
for/IN
U.S./NNP
Memories/NNP
./.
Last/JJ
month/NN
,/,
Apple/NNP
Computer/NNP
Inc./NNP
said/VBD
that/IN
it/PRP
would/MD
n't/RB
invest/VB
in/IN
the/DT
group/NN
./.
Apple/NNP
said/VBD
that/DT
its/PRP$
money/NN
would/MD
be/VB
better/RBR
spent/VBN
in/IN
areas/NNS
such/JJ
as/IN
research/NN
and/CC
development/NN
./.
U.S./NNP
Memories/NNP
is/VBZ
seeking/VBG
major/JJ
investors/NNS
to/TO
back/VB
its/PRP$
attempt/NN
to/TO
crack/VB
the/DT
$/$
10/CD
billion/CD
market/NN
for/IN
dynamic/JJ
random/JJ
access/NN
memory/NN
chips/NNS
,/,
a/DT
market/NN
dominated/VBN
by/IN
the/DT
Japanese/NNPS
./.
Those/DT
chips/NNS
were/VBD
in/IN
dire/JJ
shortage/NN
last/JJ
year/NN
,/,
hurting/VBG
many/JJ
U.S./NNP
computer/NN
companies/NNS
that/WDT
could/MD
n't/RB
get/VB
sufficient/JJ
Japanese-supplied/JJ
chips/NNS
./.
Tandy/NNP
said/VBD
its/PRP$
experience/NN
during/IN
the/DT
shortage/NN
did/VBD
n't/RB
merit/NN
the/DT
$/$
5/CD
million/CD
to/TO
$/$
50/CD
million/CD
investment/NN
U.S./NNP
Memories/NNP
is/VBZ
seeking/VBG
from/IN
each/DT
investor/NN
./.
``/``
At/IN
this/DT
time/NN
,/,
we/PRP
elected/VBD
not/RB
to/TO
get/VB
involved/VBN
because/IN
we/PRP
have/VBP
been/VBN
able/JJ
to/TO
satisfy/VB
our/PRP$
need/NN
DRAMs/NNS
the/DT
market/NN
as/IN
a/DT
rule/NN
,/,
''/''
said/VBD
Ed/NNP
Juge/NNP
,/,
Tandy/NNP
's/POS
director/NN
of/IN
market/NN
planning/NN
./.
Sanford/NNP
Kane/NNP
,/,
U.S./NNP
Memories/NNP
president/NN
,/,
said/VBD
the/DT
decision/NN
was/VBD
``/``
disappointing/JJ
,/,
''/''
but/CC
does/VBZ
n't/RB
presage/VB
U.S./NNP
Memories/NNP
'/POS
failure/NN
./.
``/``
I/PRP
would/MD
like/VB
to/TO
have/VB
had/VBD
them/PRP
,/,
''/''
he/PRP
said/VBD
./.
But/CC
``/``
they/PRP
were/VBD
n't/RB
on/IN
my/PRP$
list/NN
of/IN
companies/NNS
who/WP
were/VBD
critical/JJ
to/TO
be/VB
a/DT
part/NN
of/IN
it/PRP
./.
''/''
Mr./NNP
Kane/NNP
became/VBD
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
U.S./NNP
Memories/NNP
last/JJ
June/NNP
,/,
when/WRB
the/DT
group/NN
was/VBD
formed/VBN
by/IN
seven/CD
electronics/NNS
companies/NNS
:/:
Advanced/NNP
Micro/NNP
Devices/NNP
Inc./NNP
,/,
Digital/NNP
Equipment/NNP
Corp./NNP
;/:
Hewlett-Packard/NNP
Co./NNP
;/:
Intel/NNP
Corp./NNP
;/:
International/NNP
Business/NNP
Machines/NNP
Corp./NNP
;/:
LSI/NNP
Logic/NNP
Corp./NNP
and/CC
National/NNP
Semiconductor/NNP
Corp/NNP
./.
Mr./NNP
Kane/NNP
said/VBD
he/PRP
expects/VBZ
two/CD
or/CC
three/CD
major/JJ
corporations/NNS
to/TO
announce/VB
their/PRP$
participation/NN
in/IN
U.S./NNP
Memories/NNP
soon/RB
after/IN
the/DT
group/NN
finishes/VBZ
a/DT
business/NN
plan/NN
,/,
probably/RB
late/RB
this/DT
week/NN
./.
U.S./NNP
Memories/NNP
needs/VBZ
a/DT
catalyst/NN
,/,
he/PRP
said/VBD
,/,
to/TO
inspire/VB
others/NNS
to/TO
join/VB
./.
But/CC
so/RB
far/RB
,/,
most/RBS
potential/JJ
participants/NNS
have/VBP
n't/RB
decided/VBN
./.
Sun/NNP
Microsystems/NNP
Inc./NNP
said/VBD
it/PRP
's/VBZ
still/RB
actively/RB
evaluating/VBG
U.S./NNP
Memories/NNP
and/CC
plans/VBZ
to/TO
meet/VB
with/IN
U.S./NNP
Memories/NNP
representatives/NNS
later/RB
this/DT
week/NN
./.
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
Co./NNP
said/VBD
it/PRP
was/VBD
waiting/VBG
to/TO
see/VB
U.S./NNP
Memories/NNP
'/POS
business/NN
plan/NN
./.
Personal-computer/NN
maker/NN
AST/NNP
Research/NNP
Inc./NNP
said/VBD
it/PRP
is/VBZ
still/RB
studying/VBG
the/DT
situation/NN
./.
A/DT
Compaq/NNP
Computer/NNP
Corp./NNP
spokeswoman/NN
said/VBD
that/IN
the/DT
company/NN
has/VBZ
n't/RB
made/VBN
a/DT
decision/NN
yet/RB
,/,
although/IN
``/``
it/PRP
is/VBZ
n't/RB
under/IN
active/JJ
consideration/NN
./.
''/''
In/IN
a/DT
startling/JJ
turnabout/NN
,/,
Members/NNP
of/IN
the/DT
Senate/NNP
Intelligence/NNP
Committee/NNP
are/VBP
complaining/VBG
that/IN
someone/NN
in/IN
the/DT
executive/JJ
branch/NN
is/VBZ
leaking/VBG
on/IN
them/PRP
./.
David/NNP
Boren/NNP
,/,
the/DT
Intelligence/NNP
Committee/NNP
chairman/NN
,/,
is/VBZ
upset/JJ
that/IN
someone/NN
leaked/VBD
a/DT
letter/NN
to/TO
the/DT
committee/NN
from/IN
the/DT
Reagan/NNP
administration/NN
suggesting/VBG
that/IN
the/DT
U.S./NNP
would/MD
undertake/VB
to/TO
warn/VB
Panamanian/JJ
thug/NN
Manuel/NNP
Noriega/NNP
if/IN
it/PRP
got/VBD
wind/NN
of/IN
an/DT
impending/JJ
coup/NN
that/WDT
might/MD
result/VB
in/IN
his/PRP$
assassination/NN
./.
With/IN
due/JJ
respect/NN
to/TO
``/``
highly/RB
classified/JJ
correspondence/NN
''/''
and/CC
other/JJ
buzzwords/NNS
,/,
the/DT
leakers/NNS
are/VBP
performing/VBG
a/DT
public/JJ
service/NN
./.
If/IN
the/DT
CIA/NNP
has/VBZ
become/VBN
a/DT
protection/NN
service/NN
for/IN
Mr./NNP
Noriega/NNP
,/,
the/DT
American/JJ
people/NNS
ought/MD
to/TO
know/VB
./.
What/WP
went/VBD
wrong/JJ
in/IN
Panama/NNP
is/VBZ
a/DT
fitting/JJ
subject/NN
for/IN
public/JJ
and/CC
congressional/JJ
inquiry/NN
./.
Naturally/RB
,/,
Senator/NNP
Boren/NNP
and/CC
his/PRP$
committee/NN
would/MD
like/VB
free/JJ
rein/NN
to/TO
blame/VB
the/DT
executive/JJ
branch/NN
while/IN
stamping/VBG
``/``
top/JJ
secret/NN
''/''
on/IN
their/PRP$
own/JJ
complicity/NN
./.
But/CC
there/EX
's/VBZ
no/DT
danger/NN
of/IN
exposing/VBG
sources/NNS
and/CC
methods/NNS
in/IN
disclosing/VBG
the/DT
debate/NN
running/VBG
up/IN
and/CC
down/IN
Pennsylvania/NNP
Avenue/NNP
./.
And/CC
if/IN
Congress/NNP
is/VBZ
going/VBG
to/TO
assume/VB
authority/NN
to/TO
micromanage/NN
foreign/JJ
policy/NN
,/,
it/PRP
's/VBZ
going/VBG
to/TO
have/VB
to/TO
take/VB
some/DT
of/IN
the/DT
responsibility/NN
too/RB
./.
The/DT
President/NNP
of/IN
the/DT
United/NNP
States/NNP
urged/VBD
the/DT
Panamanian/JJ
armed/JJ
forces/NNS
to/TO
move/VB
against/IN
Mr./NNP
Noriega/NNP
./.
When/WRB
they/PRP
did/VBD
,/,
his/PRP$
commanders/NNS
did/VBD
n't/RB
have/VB
the/DT
initiative/NN
to/TO
do/VB
more/JJR
than/IN
block/VB
a/DT
couple/NN
of/IN
roads/NNS
./.
The/DT
executive/JJ
branch/NN
bears/VBZ
the/DT
first/JJ
responsibility/NN
for/IN
timidity/NN
./.
But/CC
what/WP
kind/NN
of/IN
initiative/NN
can/MD
you/PRP
expect/VB
given/VBN
the/DT
climate/NN
set/VBN
by/IN
Congress/NNP
?/.
For/IN
example/NN
,/,
what/WP
exactly/RB
did/VBD
the/DT
CIA/NNP
tell/VB
Major/NNP
Giroldi/NNP
and/CC
his/PRP$
fellow/NN
coup/NN
plotters/NNS
about/IN
U.S./NNP
laws/NNS
and/CC
executive/JJ
orders/NNS
on/IN
assassinations/NNS
?/.
What/WP
part/NN
did/VBD
U.S./NNP
warnings/NNS
play/VB
in/IN
the/DT
major/NN
's/POS
unwillingness/NN
to/TO
pull/VB
the/DT
trigger/NN
when/WRB
he/PRP
had/VBD
General/NNP
Noriega/NNP
in/IN
custody/NN
,/,
but/CC
was/VBD
under/IN
attack/NN
by/IN
pro-Noriega/JJ
troops/NNS
?/.
Mr./NNP
Noriega/NNP
did/VBD
n't/RB
suffer/VB
from/IN
any/DT
hesitation/NN
once/IN
he/PRP
had/VBD
the/DT
pistol/NN
./.
Maybe/RB
we/PRP
need/VBP
a/DT
CIA/NNP
version/NN
of/IN
the/DT
Miranda/NNP
warning/NN
:/:
You/PRP
have/VBP
the/DT
right/NN
to/TO
conceal/VB
your/PRP$
coup/NN
intentions/NNS
,/,
because/IN
we/PRP
may/MD
rat/VB
on/IN
you/PRP
./.
Or/CC
maybe/RB
a/DT
Surgeon/NNP
General/NNP
's/POS
warning/NN
:/:
Confiding/VBG
in/IN
the/DT
United/NNP
States/NNPS
may/MD
be/VB
fatal/JJ
./.
CIA/NNP
chief/NN
William/NNP
Webster/NNP
,/,
hardly/RB
a/DT
Washington/NNP
malcontent/NN
,/,
got/VBD
the/DT
debate/NN
started/VBN
last/JJ
week/NN
by/IN
noting/VBG
that/IN
the/DT
executive/JJ
order/NN
banning/VBG
assassinations/NNS
had/VBD
contributed/VBN
to/TO
U.S./NNP
paralysis/NN
during/IN
the/DT
coup/NN
./.
The/DT
CIA/NNP
's/POS
Deputy/NNP
Director/NNP
of/IN
Operations/NNP
,/,
Richard/NNP
Stoltz/NNP
,/,
tried/VBD
to/TO
smooth/VB
things/NNS
over/RP
a/DT
few/JJ
days/NNS
later/RB
,/,
but/CC
instead/RB
simply/RB
underlined/VBD
Mr./NNP
Webster/NNP
's/POS
point/NN
./.
``/``
The/DT
interpretation/NN
''/''
of/IN
the/DT
executive/JJ
order/NN
,/,
Mr./NNP
Stoltz/NNP
said/VBD
,/,
``/``
and/CC
the/DT
way/NN
in/IN
which/WDT
the/DT
various/JJ
committees/NNS
have/VBP
over/IN
time/NN
interpreted/VBD
it/PRP
,/,
has/VBZ
led/VBN
in/IN
my/PRP$
view/NN
to/TO
a/DT
proper/JJ
caution/NN
on/IN
the/DT
part/NN
of/IN
operators/NNS
,/,
including/VBG
me/PRP
./.
''/''
In/IN
other/JJ
words/NNS
,/,
Congress/NNP
wo/MD
n't/RB
let/VB
the/DT
CIA/NNP
do/VB
much/JJ
of/IN
anything/NN
anymore/RB
,/,
and/CC
that/DT
's/VBZ
fine/JJ
with/IN
the/DT
CIA/NNP
./.
The/DT
pay/NN
's/VBZ
the/DT
same/JJ
,/,
and/CC
the/DT
duty/NN
's/POS
lighter/JJR
./.
And/CC
of/IN
course/NN
,/,
doing/VBG
anything/NN
that/WDT
might/MD
be/VB
second-guessed/VBN
by/IN
Congress/NNP
carries/VBZ
heavy/JJ
penalties/NNS
./.
Witness/VB
the/DT
Walsh/NNP
prosecution/NN
of/IN
Ollie/NNP
North/NNP
./.
The/DT
Intelligence/NNP
Committee/NNP
's/POS
ranking/JJ
Republican/NNP
,/,
Senator/NNP
William/NNP
Cohen/NNP
,/,
joined/VBD
with/IN
Senator/NNP
George/NNP
Mitchell/NNP
to/TO
write/VB
a/DT
best/JJS
seller/NN
about/IN
Iran-Contra/NNP
,/,
deploring/VBG
``/``
Men/NNP
of/IN
Zeal/NNP
./.
''/''
No/DT
doubt/NN
many/JJ
people/NNS
in/IN
the/DT
CIA/NNP
,/,
the/DT
Pentagon/NNP
and/CC
the/DT
National/NNP
Security/NNP
Council/NNP
have/VBP
read/VBN
it/PRP
./.
What/WP
kind/NN
of/IN
initiative/NN
should/MD
anyone/NN
expect/VB
from/IN
people/NNS
out/IN
on/IN
the/DT
line/NN
who/WP
've/VBP
read/VBN
all/PDT
this/DT
and/CC
know/VBP
what/WP
can/MD
happen/VB
if/IN
they/PRP
fail/VBP
?/.
Who/WP
wants/VBZ
to/TO
end/VB
up/RP
as/IN
the/DT
protagonist/NN
in/IN
a/DT
Bill/NNP
Cohen/NNP
morality/NN
play/NN
?/.
The/DT
order/NN
against/IN
assassinations/NNS
is/VBZ
another/DT
artifact/NN
of/IN
the/DT
same/JJ
congressional/JJ
mind-set/NN
,/,
a/DT
product/NN
of/IN
the/DT
1970s/NNS
Vietnam/NNP
syndrome/NN
against/IN
any/DT
executive/JJ
action/NN
./.
President/NNP
Bush/NNP
would/MD
do/VB
himself/PRP
and/CC
the/DT
country/NN
a/DT
favor/NN
by/IN
rescinding/VBG
the/DT
order/NN
as/IN
an/DT
ambiguous/JJ
intrusion/NN
on/IN
his/PRP$
ability/NN
to/TO
defend/VB
America/NNP
's/POS
national/JJ
security/NN
./.
There/EX
are/VBP
of/IN
course/NN
good/JJ
reasons/NNS
the/DT
U.S./NNP
should/MD
n't/RB
get/VB
into/IN
the/DT
assassination/NN
business/NN
,/,
but/CC
rescinding/VBG
the/DT
executive/JJ
order/NN
is/VBZ
not/RB
the/DT
same/JJ
thing/NN
as/IN
saying/VBG
the/DT
U.S./NNP
should/MD
start/VB
passing/VBG
out/RP
exploding/VBG
cigars/NNS
./.
The/DT
world/NN
being/VBG
the/DT
nasty/JJ
place/NN
it/PRP
is/VBZ
,/,
we/PRP
want/VBP
Presidents/NNS
to/TO
have/VB
the/DT
freedom/NN
to/TO
order/VB
operations/NNS
in/IN
which/WDT
someone/NN
might/MD
get/VB
killed/VBN
./.
In/IN
such/JJ
situations/NNS
,/,
you/PRP
can/MD
not/RB
write/VB
rules/NNS
in/IN
advance/NN
,/,
you/PRP
can/MD
only/RB
make/VB
sure/JJ
the/DT
President/NNP
takes/VBZ
the/DT
responsibility/NN
./.
The/DT
executive/JJ
order/NN
and/CC
the/DT
reported/JJ
agreements/NNS
with/IN
the/DT
Intelligence/NNP
Committee/NNP
are/VBP
neither/DT
sensible/JJ
nor/CC
moral/JJ
./.
As/IN
it/PRP
now/RB
stands/VBZ
,/,
the/DT
U.S./NNP
can/MD
bomb/VB
Tripoli/NNP
,/,
but/CC
ca/MD
n't/RB
``/``
assassinate/VB
''/''
Colonel/NNP
Gadhafi/NNP
./.
It/PRP
can/MD
send/VB
a/DT
fighter/NN
squadron/NN
to/TO
strafe/VB
terrorist/JJ
hideouts/NNS
in/IN
the/DT
Bekaa/NNP
Valley/NNP
,/,
but/CC
ca/MD
n't/RB
shoot/VB
Abu/NNP
Nidal/NNP
./.
Both/PDT
the/DT
assassination/NN
order/NN
and/CC
the/DT
quality/NN
of/IN
debate/NN
in/IN
Washington/NNP
are/VBP
telling/VBG
the/DT
world/NN
that/IN
the/DT
only/JJ
way/NN
the/DT
U.S./NNP
will/MD
kill/VB
a/DT
madman/NN
is/VBZ
by/IN
making/VBG
sure/JJ
we/PRP
take/VBP
some/DT
innocent/JJ
civilians/NNS
with/IN
him/PRP
./.
We/PRP
've/VBP
heard/VBN
California/NNP
's/POS
property-tax-cutting/JJ
Proposition/NNP
13/CD
blamed/VBN
for/IN
a/DT
lot/NN
over/IN
the/DT
years/NNS
,/,
but/CC
ABC/NNP
's/POS
Ted/NNP
Koppel/NNP
came/VBD
up/RP
with/IN
a/DT
new/JJ
wrinkle/NN
in/IN
his/PRP$
earthquake/NN
coverage/NN
last/JJ
week/NN
when/WRB
he/PRP
asked/VBD
Democratic/NNP
Assemblyman/NNP
Richard/NNP
Katz/NNP
if/IN
Prop./NNP
13/CD
had/VBD
withheld/VBN
money/NN
needed/VBN
for/IN
road/NN
maintenance/NN
./.
Mr./NNP
Katz/NNP
happily/RB
agreed/VBD
,/,
sliding/VBG
over/IN
the/DT
fact/NN
that/IN
California/NNP
's/POS
roads/NNS
and/CC
bridges/NNS
are/VBP
n't/RB
funded/VBN
by/IN
property/NN
taxes/NNS
but/CC
by/IN
state/NN
and/CC
federal/JJ
gasoline/NN
taxes/NNS
./.
Both/DT
have/VBP
been/VBN
raised/VBN
at/IN
least/JJS
30/CD
%/NN
in/IN
recent/JJ
years/NNS
,/,
even/RB
while/IN
the/DT
price/NN
of/IN
gasoline/NN
has/VBZ
fallen/VBN
./.
Dragging/VBG
Prop./NNP
13/CD
into/IN
this/DT
story/NN
is/VBZ
a/DT
pretty/RB
long/JJ
stretch/NN
./.
A/DT
series/NN
of/IN
explosions/NNS
tore/VBD
through/IN
the/DT
huge/JJ
Phillips/NNP
Petroleum/NNP
Co./NNP
plastics/NNS
plant/NN
near/IN
here/RB
,/,
injuring/VBG
more/JJR
than/IN
a/DT
hundred/CD
and/CC
closing/VBG
parts/NNS
of/IN
the/DT
Houston/NNP
Ship/NNP
Channel/NNP
./.
There/EX
were/VBD
no/DT
immediate/JJ
reports/NNS
of/IN
deaths/NNS
,/,
but/CC
officials/NNS
said/VBD
a/DT
number/NN
of/IN
workers/NNS
were/VBD
still/RB
unaccounted/JJ
for/IN
last/JJ
night/NN
./.
The/DT
Bartlesville/NNP
,/,
Okla./NNP
,/,
oil/NN
company/NN
late/RB
yesterday/NN
still/RB
had/VBD
n't/RB
said/VBN
officially/RB
what/WP
caused/VBD
the/DT
explosions/NNS
and/CC
fires/NNS
,/,
which/WDT
sent/VBD
columns/NNS
of/IN
heavy/JJ
black/JJ
smoke/NN
billowing/VBG
high/RB
into/IN
the/DT
air/NN
./.
One/CD
local/JJ
Phillips/NNP
manager/NN
said/VBD
a/DT
seal/NN
blew/VBD
in/IN
one/CD
of/IN
the/DT
plant/NN
's/POS
reactors/NNS
./.
Glenn/NNP
Cox/NNP
,/,
Phillips/NNP
'/POS
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
,/,
and/CC
other/JJ
Phillips/NNP
officials/NNS
flew/VBD
from/IN
Bartlesville/NNP
to/TO
assess/VB
the/DT
damage/NN
and/CC
determine/VB
the/DT
cause/NN
of/IN
the/DT
afternoon/NN
explosions/NNS
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Phillips/NNP
Petroleum/NNP
shares/NNS
fell/VBD
$/$
1.125/CD
to/TO
$/$
23.125/CD
./.
The/DT
plastics/NNS
plant/NN
is/VBZ
located/VBN
on/IN
an/DT
800-acre/JJ
tract/NN
in/IN
the/DT
heart/NN
of/IN
the/DT
petrochemical/NN
corridor/NN
that/WDT
reaches/VBZ
along/IN
the/DT
U.S./NNP
Gulf/NNP
Coast/NNP
./.
The/DT
U.S./NNP
Coast/NNP
Guard/NNP
closed/VBD
six/CD
miles/NNS
of/IN
the/DT
Houston/NNP
Ship/NNP
Channel/NNP
,/,
where/WRB
about/RB
150/CD
companies/NNS
have/VBP
operations/NNS
,/,
because/IN
the/DT
thick/JJ
,/,
black/JJ
smoke/NN
obscured/VBD
the/DT
area/NN
./.
The/DT
Port/NNP
of/IN
Houston/NNP
closed/VBD
its/PRP$
terminal/NN
for/IN
handling/VBG
bulk/JJ
cargo/NN
./.
Broken/JJ
water/NN
lines/NNS
and/CC
gas/NN
leaks/NNS
hindered/VBD
firefighters/NNS
'/POS
efforts/NNS
,/,
but/CC
by/IN
late/RB
yesterday/NN
authorities/NNS
said/VBD
they/PRP
had/VBD
the/DT
fire/NN
under/IN
control/NN
./.
The/DT
blasts/NNS
blew/VBD
out/RP
windows/NNS
,/,
spewed/VBD
debris/NN
for/IN
miles/NNS
and/CC
crumpled/VBD
the/DT
ceiling/NN
in/IN
an/DT
area/NN
elementary/JJ
school/NN
./.
The/DT
initial/JJ
fireball/NN
was/VBD
caught/VBN
by/IN
cameras/NNS
in/IN
downtown/JJ
Houston/NNP
,/,
about/RB
10/CD
miles/NNS
away/RB
./.
Nearby/JJ
Pasadena/NNP
,/,
Texas/NNP
,/,
police/NN
reported/VBD
that/IN
104/CD
people/NNS
had/VBD
been/VBN
taken/VBN
to/TO
area/NN
hospitals/NNS
,/,
but/CC
a/DT
spokeswoman/NN
said/VBD
that/DT
toll/NN
could/MD
rise/VB
./.
The/DT
injured/JJ
,/,
including/VBG
three/CD
in/IN
critical/JJ
condition/NN
,/,
were/VBD
treated/VBN
for/IN
burns/NNS
,/,
breathing/NN
problems/NNS
and/CC
cuts/NNS
from/IN
flying/VBG
glass/NN
,/,
hospital/NN
officials/NNS
said/VBD
./.
The/DT
plant/NN
employs/VBZ
between/IN
800/CD
and/CC
900/CD
on/IN
three/CD
shifts/NNS
./.
The/DT
number/NN
working/VBG
at/IN
the/DT
time/NN
of/IN
the/DT
blast/NN
was/VBD
n't/RB
known/VBN
./.
Yesterday/NN
's/POS
explosions/NNS
were/VBD
the/DT
second/JJ
round/NN
in/IN
two/CD
months/NNS
at/IN
the/DT
plastics/NNS
plant/NN
./.
In/IN
late/JJ
August/NNP
,/,
four/CD
contract/NN
workers/NNS
were/VBD
injured/VBN
and/CC
one/CD
Phillips/NNS
employee/NN
died/VBD
after/IN
an/DT
explosion/NN
at/IN
a/DT
fuel/NN
supply/NN
line/NN
near/IN
the/DT
facility/NN
's/POS
boiler/NN
house/NN
./.
The/DT
Phillips/NNP
facility/NN
manufactures/VBZ
polyethylene/NN
,/,
polypropylene/NN
and/CC
K-resin/NN
,/,
plastics/NNS
used/VBN
in/IN
a/DT
wide/JJ
array/NN
of/IN
applications/NNS
,/,
including/VBG
milk/NN
jugs/NNS
and/CC
toys/NNS
./.
Plastics/NNS
are/VBP
the/DT
cornerstone/NN
of/IN
Phillips/NNP
'/POS
chemicals/NNS
operations/NNS
,/,
which/WDT
is/VBZ
the/DT
biggest/JJS
single/JJ
contributor/NN
to/TO
the/DT
company/NN
's/POS
profits/NNS
./.
A/DT
federal/JJ
judge/NN
in/IN
Manhattan/NNP
has/VBZ
entered/VBN
a/DT
judgment/NN
requiring/VBG
a/DT
Chicago/NNP
organized/JJ
crime/NN
figure/NN
to/TO
pay/VB
the/DT
government/NN
$/$
250,000/CD
,/,
representing/VBG
alleged/JJ
profits/NNS
he/PRP
gained/VBD
from/IN
his/PRP$
involvement/NN
with/IN
the/DT
International/NNP
Brotherhood/NNP
of/IN
Teamsters/NNPS
./.
Manhattan/NNP
U.S./NNP
Attorney/NNP
Otto/NNP
Obermaier/NNP
said/VBD
it/PRP
was/VBD
the/DT
first/JJ
time/NN
ever/RB
that/IN
the/DT
government/NN
had/VBD
obtained/VBN
any/DT
disgorgement/NN
from/IN
an/DT
organized/JJ
crime/NN
figure/NN
indicted/VBN
under/IN
the/DT
civil/JJ
racketeering/NN
law/NN
./.
Joseph/NNP
Lombardo/NNP
,/,
who/WP
the/DT
government/NN
alleged/VBD
was/VBD
the/DT
``/``
captain/NN
''/''
of/IN
organized/JJ
crime/NN
in/IN
Chicago/NNP
,/,
was/VBD
one/CD
of/IN
numerous/JJ
defendants/NNS
in/IN
the/DT
government/NN
's/POS
sweeping/JJ
racketeering/NN
suit/NN
against/IN
the/DT
Teamsters/NNPS
./.
In/IN
the/DT
suit/NN
,/,
filed/VBN
in/IN
June/NNP
1988/CD
,/,
the/DT
government/NN
accused/VBD
the/DT
union/NN
's/POS
leadership/NN
of/IN
depriving/VBG
its/PRP$
1.6/CD
million/CD
members/NNS
of/IN
their/PRP$
rights/NNS
through/IN
a/DT
pattern/NN
of/IN
racketeering/NN
./.
Among/IN
other/JJ
things/NNS
,/,
the/DT
government/NN
claimed/VBD
that/IN
organized/JJ
crime/NN
figures/NNS
had/VBD
routinely/RB
handpicked/VBN
the/DT
union/NN
's/POS
top/JJ
officials/NNS
./.
U.S./NNP
District/NNP
Judge/NNP
David/NNP
Edelstein/NNP
also/RB
permanently/RB
enjoined/VBD
Mr./NNP
Lombardo/NNP
from/IN
any/DT
future/JJ
dealings/NNS
with/IN
the/DT
Teamsters/NNPS
or/CC
any/DT
other/JJ
labor/NN
union/NN
./.
Mr./NNP
Lombardo/NNP
,/,
the/DT
last/JJ
of/IN
the/DT
defendants/NNS
to/TO
settle/VB
the/DT
suit/NN
,/,
agreed/VBD
to/TO
pay/VB
the/DT
government/NN
the/DT
$/$
250,000/CD
within/IN
one/CD
week/NN
./.
Exxon/NNP
Corp./NNP
said/VBD
its/PRP$
third-quarter/JJ
earnings/NNS
slipped/VBD
9/CD
%/NN
as/IN
profits/NNS
from/IN
two/CD
of/IN
its/PRP$
three/CD
major/JJ
businesses/NNS
sagged/VBD
./.
All/DT
cleanup/NN
costs/NNS
from/IN
last/JJ
spring/NN
's/POS
Alaskan/JJ
oil/NN
spill/NN
were/VBD
reflected/VBN
in/IN
earlier/JJR
results/NNS
,/,
it/PRP
said/VBD
./.
Phillips/NNP
Petroleum/NNP
Co./NNP
and/CC
Atlantic/NNP
Richfield/NNP
Co./NNP
also/RB
reported/VBD
declines/NNS
in/IN
quarterly/JJ
profit/NN
,/,
while/IN
Ashland/NNP
Oil/NNP
Inc./NNP
posted/VBD
a/DT
loss/NN
for/IN
the/DT
latest/JJS
quarter/NN
./.
Amerada/NNP
Hess/NNP
Corp./NNP
and/CC
Occidental/NNP
Petroleum/NNP
Corp./NNP
reported/VBD
higher/JJR
earnings/NNS
./.
Exxon/NNP
Although/IN
Exxon/NNP
spent/VBD
heavily/RB
during/IN
the/DT
latest/JJS
quarter/NN
to/TO
clean/VB
up/RP
the/DT
Alaskan/JJ
shoreline/NN
blackened/VBN
by/IN
its/PRP$
huge/JJ
oil/NN
spill/NN
,/,
those/DT
expenses/NNS
as/RB
well/RB
as/IN
the/DT
cost/NN
of/IN
a/DT
continuing/JJ
spill-related/JJ
program/NN
are/VBP
covered/VBN
by/IN
$/$
880/CD
million/CD
in/IN
charges/NNS
taken/VBN
during/IN
the/DT
first/JJ
half/NN
./.
An/DT
Exxon/NNP
official/NN
said/VBD
that/IN
at/IN
this/DT
time/NN
the/DT
oil/NN
company/NN
does/VBZ
n't/RB
anticipate/VB
any/DT
additional/JJ
charges/NNS
to/TO
future/JJ
earnings/NNS
relating/VBG
to/TO
the/DT
cleanup/NN
of/IN
oil/NN
spilled/VBN
when/WRB
one/CD
of/IN
its/PRP$
tankers/NNS
rammed/VBD
into/IN
an/DT
underwater/JJ
reef/NN
./.
She/PRP
added/VBD
,/,
however/RB
,/,
that/IN
charges/NNS
already/RB
taken/VBN
do/VBP
n't/RB
take/VB
into/IN
account/NN
the/DT
potential/JJ
effect/NN
of/IN
litigation/NN
involving/VBG
the/DT
oil/NN
spill/NN
./.
She/PRP
said/VBD
that/DT
impact/NN
ca/MD
n't/RB
be/VB
reasonably/RB
assessed/VBN
yet/RB
./.
Exxon/NNP
's/POS
net/JJ
income/NN
during/IN
the/DT
third/JJ
quarter/NN
dropped/VBD
to/TO
$/$
1.11/CD
billion/CD
,/,
or/CC
87/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
1.22/CD
billion/CD
,/,
or/CC
93/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Revenue/NN
rose/VBD
8.1/CD
%/NN
,/,
to/TO
$/$
23.65/CD
billion/CD
from/IN
$/$
21.88/CD
billion/CD
./.
During/IN
the/DT
third/JJ
quarter/NN
,/,
Exxon/NNP
purchased/VBD
8.34/CD
million/CD
shares/NNS
of/IN
its/PRP$
stock/NN
at/IN
a/DT
cost/NN
of/IN
$/$
373/CD
million/CD
./.
Exxon/NNP
's/POS
profitability/NN
,/,
like/IN
that/DT
of/IN
many/JJ
other/JJ
oil/NN
companies/NNS
,/,
was/VBD
hurt/VBN
during/IN
the/DT
third/JJ
quarter/NN
by/IN
declining/VBG
returns/NNS
from/IN
the/DT
chemicals/NNS
and/CC
refining/NN
and/CC
marketing/NN
businesses/NNS
./.
Exxon/NNP
's/POS
earnings/NNS
from/IN
chemicals/NNS
operations/NNS
fell/VBD
$/$
90/CD
million/CD
,/,
to/TO
$/$
254/CD
million/CD
,/,
while/IN
refining/NN
and/CC
marketing/NN
profits/NNS
declined/VBD
$/$
180/CD
million/CD
,/,
to/TO
$/$
357/CD
million/CD
./.
Although/IN
crude/JJ
oil/NN
prices/NNS
were/VBD
significantly/RB
higher/JJR
this/DT
year/NN
,/,
they/PRP
were/VBD
n't/RB
strong/JJ
enough/RB
to/TO
offset/VB
the/DT
declining/VBG
profits/NNS
in/IN
those/DT
business/NN
sectors/NNS
at/IN
most/JJS
oil/NN
companies/NNS
,/,
said/VBD
William/NNP
Randol/NNP
,/,
oil/NN
analyst/NN
for/IN
First/NNP
Boston/NNP
Corp/NNP
./.
He/PRP
estimates/VBZ
that/IN
the/DT
price/NN
of/IN
West/NNP
Texas/NNP
Intermediate/NNP
,/,
the/DT
U.S./NNP
benchmark/JJ
crude/NN
,/,
was/VBD
$/$
4.04/CD
a/DT
barrel/NN
higher/JJR
during/IN
the/DT
third/JJ
quarter/NN
of/IN
this/DT
year/NN
than/IN
in/IN
the/DT
same/JJ
period/NN
last/JJ
year/NN
./.
Ashland/NNP
Oil/NNP
A/DT
rash/NN
of/IN
one-time/JJ
charges/NNS
left/VBD
Ashland/NNP
Oil/NNP
with/IN
a/DT
loss/NN
of/IN
$/$
39/CD
million/CD
for/IN
its/PRP$
fiscal/JJ
fourth/JJ
quarter/NN
./.
A/DT
year/NN
earlier/RBR
,/,
the/DT
refiner/NN
earned/VBD
$/$
66/CD
million/CD
,/,
or/CC
$/$
1.19/CD
a/DT
share/NN
./.
Quarterly/JJ
revenue/NN
rose/VBD
4.5/CD
%/NN
,/,
to/TO
$/$
2.3/CD
billion/CD
from/IN
$/$
2.2/CD
billion/CD
./.
For/IN
the/DT
year/NN
,/,
net/JJ
income/NN
tumbled/VBD
61/CD
%/NN
to/TO
$/$
86/CD
million/CD
,/,
or/CC
$/$
1.55/CD
a/DT
share/NN
./.
The/DT
Ashland/NNP
,/,
Ky./NNP
,/,
oil/NN
company/NN
reported/VBD
a/DT
$/$
38/CD
million/CD
charge/NN
resulting/VBG
from/IN
settlement/NN
of/IN
a/DT
10-year/JJ
dispute/NN
with/IN
the/DT
National/NNP
Iranian/NNP
Oil/NNP
Co./NNP
over/IN
claims/NNS
that/IN
Ashland/NNP
did/VBD
n't/RB
pay/NN
for/IN
Iranian/JJ
crude/NN
it/PRP
had/VBD
received/VBN
./.
In/IN
September/NNP
,/,
Ashland/NNP
settled/VBD
the/DT
long-simmering/JJ
dispute/NN
by/IN
agreeing/VBG
to/TO
pay/VB
Iran/NNP
$/$
325/CD
million/CD
./.
Ashland/NNP
also/RB
took/VBD
a/DT
$/$
25/CD
million/CD
after-tax/JJ
charge/NN
to/TO
cover/VB
anticipated/JJ
costs/NNS
to/TO
correct/VB
problems/NNS
with/IN
boilers/NNS
built/VBN
by/IN
one/CD
of/IN
its/PRP$
subsidiaries/NNS
./.
The/DT
oil/NN
refiner/NN
also/RB
booked/VBD
a/DT
$/$
15/CD
million/CD
charge/NN
for/IN
selling/VBG
Ashland/NNP
Technology/NNP
Corp./NNP
,/,
one/CD
of/IN
its/PRP$
subsidiaries/NNS
,/,
at/IN
a/DT
loss/NN
./.
Amerada/NNP
Hess/NNP
Third-quarter/JJ
earnings/NNS
at/IN
Amerada/NNP
Hess/NNP
more/RBR
than/IN|RB
tripled/VBD
to/TO
$/$
51.81/CD
million/CD
,/,
or/CC
64/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
15.7/CD
million/CD
,/,
or/CC
20/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Revenue/NN
climbed/VBD
28/CD
%/NN
,/,
to/TO
$/$
1.18/CD
billion/CD
from/IN
$/$
925/CD
million/CD
./.
Profits/NNS
improved/VBD
across/IN
Hess/NNP
's/POS
businesses/NNS
./.
Refining/NN
and/CC
marketing/NN
earnings/NNS
climbed/VBD
to/TO
$/$
33.3/CD
million/CD
from/IN
$/$
12.9/CD
million/CD
,/,
and/CC
exploration/NN
and/CC
production/NN
earnings/NNS
rose/VBD
to/TO
$/$
37.1/CD
million/CD
from/IN
$/$
17.9/CD
million/CD
./.
Hess/NNP
's/POS
earnings/NNS
were/VBD
up/RB
despite/IN
a/DT
$/$
30/CD
million/CD
charge/NN
to/TO
cover/VB
the/DT
cost/NN
of/IN
maintaining/VBG
operations/NNS
after/IN
Hurricane/NNP
Hugo/NNP
heavily/RB
damaged/VBD
the/DT
company/NN
's/POS
refinery/NN
at/IN
St./NNP
Croix/NNP
./.
It/PRP
is/VBZ
widely/RB
known/VBN
within/IN
industry/NN
circles/NNS
that/IN
Hess/NNP
had/VBD
to/TO
buy/VB
oil/NN
products/NNS
in/IN
the/DT
high-priced/JJ
spot/NN
markets/NNS
to/TO
continue/VB
supplying/VBG
its/PRP$
customers/NNS
./.
Hess/NNP
declined/VBD
to/TO
comment/VB
./.
Phillips/NNP
Petroleum/NNP
Phillips/NNP
Petroleum/NNP
's/POS
third-quarter/JJ
earnings/NNS
slid/VBD
60/CD
%/NN
,/,
to/TO
$/$
87/CD
million/CD
,/,
or/CC
36/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
215/CD
million/CD
,/,
or/CC
89/CD
cents/NNS
a/DT
share/NN
./.
Revenue/NN
rose/VBD
6.9/CD
%/NN
,/,
to/TO
$/$
3.1/CD
billion/CD
from/IN
$/$
2.9/CD
billion/CD
./.
Shrinking/VBG
profit/NN
margins/NNS
in/IN
chemical/NN
and/CC
refining/NN
and/CC
marketing/NN
sectors/NNS
accounted/VBD
for/IN
most/JJS
of/IN
the/DT
decline/NN
,/,
said/VBD
Chairman/NNP
C.J./NNP
Silas/NNP
in/IN
a/DT
statement/NN
./.
Despite/IN
higher/JJR
oil/NN
prices/NNS
,/,
exploration/NN
and/CC
production/NN
profits/NNS
were/VBD
off/RB
because/RB
of/IN
foreign-currency/NN
losses/NNS
and/CC
some/DT
construction/NN
costs/NNS
incurred/VBN
in/IN
one/CD
of/IN
Phillips/NNP
'/POS
North/NNP
Sea/NNP
oil/NN
fields/NNS
./.
A/DT
year/NN
ago/RB
,/,
results/NNS
were/VBD
buoyed/VBN
by/IN
a/DT
$/$
20/CD
million/CD
after-tax/JJ
gain/NN
from/IN
an/DT
asset/NN
sale/NN
./.
Occidental/NNP
Petroleum/NNP
Occidental/NNP
Petroleum/NNP
's/POS
third-quarter/JJ
net/JJ
income/NN
rose/VBD
2.9/CD
%/NN
to/TO
$/$
108/CD
million/CD
,/,
or/CC
39/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
105/CD
million/CD
,/,
or/CC
38/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
./.
The/DT
latest/JJS
quarter/NN
included/VBD
an/DT
after-tax/JJ
gain/NN
of/IN
$/$
71/CD
million/CD
from/IN
non-recurring/JJ
items/NNS
./.
Sales/NNS
dropped/VBD
2/CD
%/NN
,/,
to/TO
$/$
4.8/CD
billion/CD
from/IN
$/$
4.9/CD
billion/CD
./.
The/DT
latest/JJS
period/NN
included/VBD
a/DT
$/$
54/CD
million/CD
gain/NN
from/IN
the/DT
sale/NN
of/IN
various/JJ
oil/NN
and/CC
gas/NN
properties/NNS
,/,
a/DT
$/$
22/CD
million/CD
charge/NN
from/IN
the/DT
restructuring/NN
of/IN
Occidental/NNP
's/POS
domestic/JJ
oil/NN
and/CC
gas/NN
operations/NNS
,/,
and/CC
tax/NN
credits/NNS
of/IN
$/$
42/CD
million/CD
./.
Both/DT
periods/NNS
included/VBD
non-recurring/JJ
charges/NNS
of/IN
$/$
3/CD
million/CD
for/IN
early/JJ
retirement/NN
of/IN
debt/NN
./.
Occidental/NNP
said/VBD
oil/NN
and/CC
gas/NN
earnings/NNS
fell/VBD
to/TO
$/$
17/CD
million/CD
from/IN
$/$
20/CD
million/CD
./.
The/DT
latest/JJS
period/NN
includes/VBZ
net/JJ
gains/NNS
of/IN
$/$
32/CD
million/CD
in/IN
non-recurring/JJ
credits/NNS
from/IN
the/DT
sale/NN
of/IN
properties/NNS
,/,
indicating/VBG
operating/NN
losses/NNS
for/IN
the/DT
quarter/NN
in/IN
the/DT
oil/NN
and/CC
gas/NN
division/NN
./.
Chemical/NN
earnings/NNS
fell/VBD
10/CD
%/NN
,/,
reflecting/VBG
softening/NN
of/IN
demand/NN
./.
Atlantic/NNP
Richfield/NNP
Citing/VBG
its/PRP$
reduced/JJ
ownership/NN
in/IN
the/DT
Lyondell/NNP
Petrochemical/NNP
Co./NNP
,/,
Atlantic/NNP
Richfield/NNP
reported/VBD
that/IN
net/JJ
income/NN
slid/VBD
3.1/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
to/TO
$/$
379/CD
million/CD
,/,
or/CC
$/$
2.19/CD
a/DT
share/NN
,/,
from/IN
$/$
391/CD
million/CD
,/,
or/CC
$/$
2.17/CD
a/DT
share/NN
,/,
for/IN
the/DT
comparable/JJ
period/NN
last/JJ
year/NN
./.
Sales/NNS
fell/VBD
20/CD
%/NN
,/,
to/TO
$/$
3.7/CD
billion/CD
from/IN
$/$
4.6/CD
billion/CD
./.
Arco/NNP
's/POS
earnings/NNS
from/IN
its/PRP$
49.9/CD
%/NN
stake/NN
in/IN
Lyondell/NNP
fell/VBD
to/TO
$/$
37/CD
million/CD
from/IN
$/$
156/CD
million/CD
for/IN
the/DT
same/JJ
period/NN
last/JJ
year/NN
,/,
when/WRB
Lyondell/NNP
was/VBD
wholly/RB
owned/VBN
./.
Offsetting/VBG
the/DT
lower/JJR
stake/NN
in/IN
Lyondell/NNP
were/VBD
higher/JJR
crude/JJ
oil/NN
prices/NNS
,/,
increased/JJ
natural/JJ
gas/NN
volumes/NNS
and/CC
higher/JJR
coke/NN
prices/NNS
,/,
the/DT
company/NN
said/VBD
./.
Coal/NN
earnings/NNS
rose/VBD
to/TO
$/$
26/CD
million/CD
from/IN
$/$
21/CD
million/CD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Arco/NNP
reported/VBD
net/JJ
income/NN
of/IN
$/$
1.6/CD
billion/CD
,/,
or/CC
$/$
8.87/CD
a/DT
share/NN
,/,
up/RB
33/CD
%/NN
from/IN
$/$
1.2/CD
billion/CD
,/,
or/CC
$/$
6.56/CD
a/DT
share/NN
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
were/VBD
$/$
12/CD
billion/CD
,/,
off/IN
13/CD
%/NN
from/IN
$/$
13.8/CD
billion/CD
./.
Jeff/NNP
Rowe/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
The/DT
following/JJ
were/VBD
among/IN
yesterday/NN
's/POS
offerings/NNS
and/CC
pricings/NNS
in/IN
the/DT
U.S./NNP
and/CC
non-U.S./JJ
capital/NN
markets/NNS
,/,
with/IN
terms/NNS
and/CC
syndicate/NN
manager/NN
,/,
as/IN
compiled/VBN
by/IN
Dow/NNP
Jones/NNP
Capital/NNP
Markets/NNP
Report/NNP
:/:
Imo/NNP
Industries/NNP
Inc./NNP
--/:
$/$
150/CD
million/CD
of/IN
senior/JJ
subordinated/JJ
debentures/NNS
due/JJ
2001/CD
,/,
priced/VBN
at/IN
par/NN
to/TO
yield/VB
12/CD
%/NN
./.
The/DT
issue/NN
will/MD
be/VB
sold/VBN
through/IN
Morgan/NNP
Stanley/NNP
&/CC
Co/NNP
./.
Other/JJ
details/NNS
were/VBD
n't/RB
available/JJ
./.
San/NNP
Antonio/NNP
,/,
Texas/NNP
--/:
$/$
575/CD
million/CD
of/IN
electric/JJ
and/CC
gas/NN
system/NN
revenue/NN
refunding/JJ
bonds/NNS
,/,
Series/NNP
1989/NNP
,/,
1989A/NNP
and/CC
1989B/NNP
,/,
tentatively/RB
priced/VBN
by/IN
a/DT
First/NNP
Boston/NNP
Corp./NNP
group/NN
to/TO
yield/VB
from/IN
6.15/CD
%/NN
in/IN
1991/CD
to/TO
7.30/CD
%/NN
in/IN
2009/CD
./.
The/DT
issue/NN
includes/VBZ
current/JJ
interest/NN
bonds/NNS
due/JJ
1991-2000/CD
,/,
2009/CD
,/,
2012/CD
,/,
2014/CD
and/CC
2016/CD
,/,
and/CC
capital/NN
appreciation/NN
bonds/NNS
due/JJ
2001-2005/CD
./.
The/DT
current/JJ
interest/NN
serial/NN
bonds/NNS
are/VBP
priced/VBN
to/TO
yield/VB
from/IN
6.15/CD
%/NN
in/IN
1991/CD
to/TO
7.10/CD
%/NN
in/IN
2000/CD
./.
There/EX
are/VBP
about/RB
$/$
100/CD
million/CD
of/IN
7/CD
%/NN
term/NN
bonds/NNS
due/JJ
2009/CD
,/,
priced/VBN
to/TO
yield/VB
7.30/CD
%/NN
,/,
which/WDT
is/VBZ
the/DT
issue/NN
's/POS
high/JJ
yield/NN
./.
There/EX
are/VBP
also/RB
about/RB
$/$
124/CD
million/CD
of/IN
6/CD
1\/2/CD
%/NN
bonds/NNS
priced/VBN
to/TO
yield/VB
7.25/CD
%/NN
in/IN
2012/CD
;/:
about/RB
$/$
97/CD
million/CD
of/IN
6/CD
%/NN
bonds/NNS
priced/VBN
to/TO
yield/VB
7.20/CD
%/NN
in/IN
2014/CD
;/:
and/CC
about/RB
$/$
26.5/CD
million/CD
of/IN
5/CD
%/NN
bonds/NNS
priced/VBN
to/TO
yield/VB
7.15/CD
%/NN
in/IN
2016/CD
./.
All/DT
of/IN
the/DT
term/NN
bonds/NNS
are/VBP
original/JJ
issue/NN
discount/NN
bonds/NNS
,/,
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the/DT
lead/JJ
underwriter/NN
./.
The/DT
capital/NN
appreciation/NN
bonds/NNS
are/VBP
tentatively/RB
priced/VBN
to/TO
yield/VB
to/TO
maturity/NN
from/IN
7/CD
%/NN
in/IN
2001/CD
to/TO
7.10/CD
%/NN
in/IN
2003-2005/CD
./.
The/DT
bonds/NNS
are/VBP
rated/VBN
double-A/JJ
by/IN
Moody/NNP
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Investors/NNP
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./.
Maryland/NNP
Stadium/NNP
Authority/NNP
--/:
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million/CD
of/IN
sports/NNS
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lease/NN
revenue/NN
bonds/NNS
,/,
Series/NNP
1989/NNP
D/NNP
,/,
due/JJ
1992-1999/CD
,/,
2004/CD
,/,
2009/CD
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2019/CD
,/,
tentatively/RB
priced/VBN
at/IN
par/NN
by/IN
a/DT
Morgan/NNP
Stanley/NNP
group/NN
to/TO
yield/VB
from/IN
6.35/CD
%/NN
in/IN
1992/CD
to/TO
7.60/CD
%/NN
in/IN
2019/CD
./.
Serial/JJ
bonds/NNS
are/VBP
priced/VBN
to/TO
yield/VB
to/TO
7.10/CD
%/NN
in/IN
1999/CD
./.
There/EX
are/VBP
$/$
15,845,000/CD
of/IN
7/CD
3\/8/CD
%/NN
bonds/NNS
priced/VBN
at/IN
par/NN
and/CC
due/JJ
2004/CD
;/:
$/$
22,985,000/CD
of/IN
7/CD
1\/2/CD
%/NN
bonds/NNS
priced/VBN
at/IN
par/NN
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due/JJ
2009/CD
;/:
and/CC
$/$
82.6/CD
million/CD
of/IN
7.60/CD
%/NN
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priced/VBN
at/IN
par/NN
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due/JJ
2019/CD
./.
The/DT
bonds/NNS
are/VBP
rated/VBN
double-A/JJ
by/IN
Moody/NNP
's/POS
and/CC
double-A-minus/JJ
by/IN
S&P/NNP
./.
Interest/NN
on/IN
the/DT
bonds/NNS
will/MD
be/VB
treated/VBN
as/IN
a/DT
preference/NN
item/NN
in/IN
calculating/VBG
the/DT
federal/JJ
alternative/JJ
minimum/JJ
tax/NN
that/WDT
may/MD
be/VB
imposed/VBN
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./.
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Loan/NNP
Mortgage/NNP
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--/:
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250/CD
million/CD
of/IN
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offered/VBN
in/IN
11/CD
classes/NNS
by/IN
Morgan/NNP
Stanley/NNP
./.
The/DT
offering/NN
,/,
Series/NNP
107/NNP
,/,
is/VBZ
backed/VBN
by/IN
Freddie/NNP
Mac/NNP
15-year/JJ
,/,
9/CD
%/NN
securities/NNS
,/,
and/CC
brings/VBZ
Freddie/NNP
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's/POS
1989/CD
Remic/NNP
issuance/NN
to/TO
$/$
32.8/CD
billion/CD
and/CC
its/PRP$
total/JJ
volume/NN
to/TO
$/$
46.8/CD
billion/CD
since/IN
the/DT
program/NN
began/VBD
in/IN
February/NNP
1988/CD
./.
The/DT
offering/NN
used/VBD
at-market/JJ
pricing/NN
./.
Federal/NNP
National/NNP
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Association/NNP
--/:
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500/CD
million/CD
of/IN
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being/VBG
offered/VBN
in/IN
10/CD
classes/NNS
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Lynch/NNP
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./.
The/DT
offering/NN
,/,
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1989-85/CD
,/,
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backed/VBN
by/IN
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%/NN
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./.
Separately/RB
,/,
a/DT
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400/CD
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is/VBZ
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offered/VBN
in/IN
15/CD
classes/NNS
by/IN
Bear/NNP
,/,
Stearns/NNP
&/CC
Co/NNP
./.
The/DT
offering/NN
,/,
Series/NNP
1989-86/CD
,/,
is/VBZ
backed/VBN
by/IN
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9/CD
%/NN
securities/NNS
./.
Finally/RB
,/,
a/DT
$/$
300/CD
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issue/NN
of/IN
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Remic/NNP
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securities/NNS
is/VBZ
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offered/VBN
in/IN
12/CD
classes/NNS
by/IN
Smith/NNP
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,/,
Harris/NNP
Upham/NNP
&/CC
Co/NNP
./.
The/DT
offering/NN
,/,
Series/NNP
1989-87/CD
,/,
is/VBZ
backed/VBN
by/IN
Fannie/NNP
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9/CD
1\/2/CD
%/NN
securities/NNS
./.
The/DT
three/CD
offerings/NNS
together/RB
bring/VBP
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's/POS
1989/CD
Remic/NNP
issuance/NN
to/TO
$/$
32.4/CD
billion/CD
and/CC
its/PRP$
total/JJ
Remic/NNP
volume/NN
to/TO
$/$
44.5/CD
billion/CD
since/IN
the/DT
program/NN
began/VBD
in/IN
April/NNP
1987/CD
./.
Credit/NNP
Agricole/NNP
CNCA/NNP
French/NNP
$/$
250/CD
million/CD
of/IN
8/CD
3\/4/CD
%/NN
bonds/NNS
due/JJ
Nov./NNP
21/CD
,/,
1994/CD
,/,
priced/VBN
at/IN
101.80/CD
to/TO
yield/VB
8.77/CD
%/NN
annually/RB
less/CC
full/JJ
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,/,
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./.
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./.
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./.
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200/CD
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of/IN
8/CD
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%/NN
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due/JJ
Nov./NNP
20/CD
,/,
1996/CD
,/,
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at/IN
101/CD
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to/TO
yield/VB
8.90/CD
%/NN
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./.
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./.
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./.
agency/NN
10/CD
billion/CD
pesetas/NNS
of/IN
11.6/CD
%/NN
bonds/NNS
due/JJ
Nov./NN
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,/,
1994/CD
,/,
priced/VBN
at/IN
101/CD
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to/TO
yield/VB
11.60/CD
%/NN
less/CC
full/JJ
fees/NNS
,/,
via/IN
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,/,
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./.
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./.
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of/IN
Canada/NNP
,/,
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Cayman/NNP
branch/NN
Canada/NNP
100/CD
million/CD
Canadian/JJ
dollars/NNS
of/IN
10/CD
3\/4/CD
%/NN
deposit/NN
notes/NNS
due/JJ
Nov./NNP
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,/,
1994/CD
,/,
priced/VBN
at/IN
101/CD
3\/4/CD
to/TO
yield/VB
10.78/CD
%/NN
less/CC
full/JJ
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,/,
via/IN
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Securities/NNP
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./.
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./.
Union/NNP
Bank/NNP
of/IN
Finland/NNP
--/:
100/CD
million/CD
Australian/JJ
dollars/NNS
of/IN
9/CD
%/NN
bonds/NNS
due/JJ
Nov./NN
9/CD
,/,
1990/CD
,/,
priced/VBN
at/IN
94/CD
to/TO
yield/VB
17.20/CD
%/NN
less/CC
full/JJ
fees/NNS
,/,
via/IN
Banque/NNP
Paribas/NNP
Capital/NNP
Markets/NNP
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./.
Fees/NNS
1/CD
./.
Ford/NNP
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Credit/NNP
--/:
$/$
2.57/CD
billion/CD
of/IN
certificates/NNS
backed/VBN
by/IN
automobile/NN
loans/NNS
with/IN
a/DT
coupon/NN
rate/NN
of/IN
8.70/CD
%/NN
,/,
priced/VBN
at/IN
99/CD
19\/32/CD
to/TO
yield/VB
8.903/CD
%/NN
through/IN
an/DT
underwriting/NN
group/NN
headed/VBN
by/IN
First/NNP
Boston/NNP
Corp/NNP
./.
The/DT
issue/NN
is/VBZ
the/DT
first/JJ
by/IN
Ford/NNP
Motor/NNP
Credit/NNP
,/,
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of/IN
Ford/NNP
Motor/NNP
Co./NNP
,/,
and/CC
the/DT
second/JJ
largest/JJS
in/IN
the/DT
four-year/JJ
history/NN
of/IN
the/DT
$/$
45/CD
billion/CD
asset-backed/JJ
market/NN
./.
The/DT
largest/JJS
issue/NN
was/VBD
a/DT
$/$
4/CD
billion/CD
offering/NN
of/IN
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securities/NNS
by/IN
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Motors/NNP
Acceptance/NNP
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in/IN
1986/CD
./.
The/DT
Ford/NNP
issue/NN
,/,
through/IN
Ford/NNP
Credit/NNP
1989-A/NNP
Grantor/NNP
Trust/NNP
,/,
was/VBD
priced/VBN
at/IN
a/DT
yield/NN
spread/NN
of/IN
95/CD
basis/NN
points/NNS
above/IN
the/DT
Treasury/NNP
7/CD
3\/4/CD
%/NN
issue/NN
due/JJ
July/NNP
1991/CD
./.
The/DT
offering/NN
is/VBZ
rated/VBN
doubleA-2/JJ
by/IN
Moody/NNP
's/POS
and/CC
double-A/JJ
by/IN
S&P/NNP
,/,
based/VBN
on/IN
the/DT
quality/NN
of/IN
the/DT
underlying/JJ
auto/NN
loans/NNS
and/CC
a/DT
guarantee/NN
covering/VBG
9/CD
%/NN
of/IN
the/DT
deal/NN
from/IN
Ford/NNP
Motor/NNP
Credit/NNP
./.
The/DT
certificates/NNS
have/VBP
an/DT
estimated/JJ
average/JJ
life/NN
of/IN
1.8/CD
years/NNS
,/,
assuming/VBG
monthly/JJ
prepayments/NNS
at/IN
1.3/CD
%/NN
of/IN
the/DT
original/JJ
balance/NN
./.
The/DT
final/JJ
maturity/NN
is/VBZ
in/IN
five/CD
years/NNS
./.
The/DT
Mouth/NNP
is/VBZ
back/RB
./.
Morton/NNP
Downey/NNP
Jr./NNP
,/,
who/WP
self-destructed/VBD
as/IN
a/DT
talk-show/NN
host/NN
and/CC
frequently/RB
verbally/RB
abused/VBD
his/PRP$
guests/NNS
,/,
has/VBZ
been/VBN
signed/VBN
to/TO
co-host/VB
a/DT
half-hour/JJ
nightly/JJ
program/NN
on/IN
the/DT
Consumer/NNP
News/NNP
and/CC
Business/NNP
Channel/NNP
,/,
the/DT
cable/NN
channel/NN
partly/RB
owned/VBN
by/IN
the/DT
General/NNP
Electric/NNP
Co./NNP
's/POS
National/NNP
Broadcasting/NNP
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./.
The/DT
premiere/NN
of/IN
``/``
Showdown/NNP
,/,
''/''
with/IN
Mr./NNP
Downey/NNP
and/CC
Richard/NNP
G./NNP
Carter/NNP
,/,
a/DT
columnist/NN
with/IN
the/DT
New/NNP
York/NNP
Daily/NNP
News/NNP
,/,
is/VBZ
scheduled/VBN
for/IN
Dec./NNP
4/CD
at/IN
8/CD
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./.
CNBC/NNP
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to/TO
13/CD
million/CD
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households/NNS
./.
Mr./NNP
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said/VBD
he/PRP
is/VBZ
not/RB
going/VBG
to/TO
change/VB
his/PRP$
style/NN
,/,
which/WDT
some/DT
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and/CC
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deemed/VBD
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./.
``/``
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I/PRP
'm/VBP
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proceed/VB
in/IN
a/DT
more/RBR
logical/JJ
way/NN
./.
I/PRP
'm/VBP
not/RB
going/VBG
to/TO
do/VB
anything/NN
that/WDT
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acceptable/JJ
in/IN
anyone/NN
's/POS
home/NN
./.
But/CC
that/DT
does/VBZ
n't/RB
mean/VB
I/PRP
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not/RB
going/VBG
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get/VB
angry/JJ
./.
''/''
Michael/NNP
Eskridge/NNP
,/,
president/NN
of/IN
CNBC/NNP
,/,
said/VBD
that/IN
although/IN
there/EX
will/MD
be/VB
a/DT
studio/NN
audience/NN
,/,
viewers/NNS
will/MD
no/RB
longer/RB
have/VB
to/TO
endure/VB
the/DT
shouting/NN
of/IN
``/``
Mort/NNP
!/.
Mort/NNP
!/.
Mort/NNP
!/.
''/''
But/CC
just/RB
how/WRB
does/VBZ
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's/POS
unorthodox/JJ
style/NN
mesh/VB
with/IN
the/DT
sedate/JJ
tone/NN
of/IN
CNBC/NNP
's/POS
business/NN
programming/NN
?/.
``/``
Ninety/CD
percent/NN
of/IN
Mort/NNP
's/POS
old/JJ
show/NN
fits/VBZ
into/IN
our/PRP$
style/NN
,/,
''/''
said/VBD
Mr./NNP
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./.
``/``
That/DT
is/VBZ
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./.
''/''
Mr./NNP
Downey/NNP
's/POS
previous/JJ
show/NN
,/,
a/DT
one-hour/JJ
shout/NN
fest/JJS
,/,
syndciated/VBN
by/IN
MCA/NNP
Inc./NNP
and/CC
produced/VBN
by/IN
Quantum/NNP
Media/NNP
Inc./NNP
,/,
was/VBD
canceled/VBN
in/IN
July/NNP
after/IN
advertisers/NNS
and/CC
stations/NNS
abandoned/VBD
it/PRP
./.
Investors/NNS
dumped/VBD
stocks/NNS
of/IN
big/JJ
companies/NNS
whose/WP$
earnings/NNS
fluctuate/VBP
with/IN
the/DT
economy/NN
./.
Many/JJ
of/IN
those/DT
``/``
cyclical/JJ
''/''
issues/NNS
are/VBP
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
,/,
which/WDT
fell/VBD
26.23/CD
to/TO
2662.91/CD
./.
Declining/VBG
issues/NNS
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
outpaced/VBD
advancers/NNS
,/,
1,012/CD
to/TO
501/CD
./.
Recession/NN
fears/NNS
are/VBP
springing/VBG
up/RP
again/RB
among/IN
investors/NNS
./.
Analysts/NNS
say/VBP
that/IN
the/DT
selling/NN
of/IN
cyclical/JJ
stocks/NNS
yesterday/NN
will/MD
be/VB
followed/VBN
by/IN
a/DT
sell-off/NN
in/IN
shares/NNS
of/IN
companies/NNS
with/IN
big/JJ
debt/NN
loads/NNS
on/IN
their/PRP$
balance/NN
sheets/NNS
./.
In/IN
an/DT
economic/JJ
slowdown/NN
,/,
heavy/JJ
debt/NN
loads/NNS
reduce/VBP
the/DT
flexibility/NN
of/IN
companies/NNS
because/IN
cash/NN
that/WDT
would/MD
normally/RB
be/VB
used/VBN
to/TO
keep/VB
the/DT
company/NN
buoyant/JJ
must/MD
be/VB
diverted/VBN
to/TO
interest/NN
payments/NNS
./.
On/IN
the/DT
other/JJ
hand/NN
,/,
investors/NNS
beat/VBP
a/DT
clear/JJ
path/NN
yesterday/NN
to/TO
blue-chip/JJ
issues/NNS
with/IN
proven/JJ
earnings/NNS
growth/NN
records/NNS
./.
Among/IN
the/DT
30/CD
Dow/NNP
industrials/NNS
,/,
they/PRP
bought/VBD
McDonald/NNP
's/POS
,/,
Coca-Cola/NNP
Co./NNP
and/CC
Procter/NNP
&/CC
Gamble/NNP
and/CC
sold/VBD
Aluminum/NNP
Co./NNP
of/IN
America/NNP
./.
In/IN
another/DT
sign/NN
of/IN
slowdown/NN
fears/NNS
,/,
investors/NNS
dumped/VBD
technology/NN
shares/NNS
./.
Many/JJ
money/NN
managers/NNS
are/VBP
bracing/VBG
for/IN
a/DT
decline/NN
in/IN
stocks/NNS
of/IN
companies/NNS
with/IN
big/JJ
debt/NN
loads/NNS
on/IN
their/PRP$
balance/NN
sheets/NNS
./.
``/``
The/DT
junk/NN
bond/NN
market/NN
is/VBZ
being/VBG
taken/VBN
apart/RP
''/''
because/IN
of/IN
recession/NN
fears/NNS
,/,
said/VBD
J./NNP
David/NNP
Mills/NNP
,/,
senior/JJ
vice/NN
president/NN
at/IN
Boston/NNP
Company/NNP
Advisers/NNP
./.
``/``
Under/IN
this/DT
scrutiny/NN
,/,
the/DT
first/JJ
thing/NN
you/PRP
do/VBP
is/VBZ
sell/VB
your/PRP$
cyclical/JJ
stocks/NNS
and/CC
the/DT
second/JJ
thing/NN
you/PRP
do/VBP
is/VBZ
sell/VB
your/PRP$
over-leveraged/JJ
companies/NNS
./.
''/''
In/IN
fact/NN
,/,
much/JJ
of/IN
the/DT
buying/NN
in/IN
blue/JJ
chips/NNS
yesterday/NN
was/VBD
a/DT
pursuit/NN
of/IN
companies/NNS
with/IN
lower/JJR
debt/NN
levels/NNS
./.
In/IN
a/DT
recent/JJ
investment/NN
letter/NN
entitled/VBN
``/``
Winners/NNS
of/IN
the/DT
`/``
Leverage/NN
Wars/NNS
,/,
'/''
''/''
Edward/NNP
Kerschner/NNP
,/,
chairman/NN
of/IN
PaineWebber/NNP
's/POS
investment/NN
policy/NN
committee/NN
,/,
suggested/VBD
that/IN
investors/NNS
buy/VB
stocks/NNS
of/IN
companies/NNS
that/WDT
have/VBP
avoided/VBN
loading/VBG
up/RP
on/IN
debt/NN
./.
``/``
We/PRP
're/VBP
saying/VBG
companies/NNS
have/VBP
to/TO
pay/VB
increasing/JJ
attention/NN
to/TO
balance/NN
sheets/NNS
,/,
''/''
said/VBD
Mr./NNP
Kerschner/NNP
./.
He/PRP
suggested/VBD
that/IN
investors/NNS
buy/VB
the/DT
shares/NNS
of/IN
Great/JJ
Atlantic/NNP
&/CC
Pacific/NNP
Tea/NNP
,/,
J./NNP
Baker/NNP
,/,
McDonald/NNP
's/POS
,/,
Philip/NNP
Morris/NNP
and/CC
Sara/NNP
Lee/NNP
./.
He/PRP
said/VBD
that/IN
all/DT
of/IN
these/DT
companies/NNS
will/MD
be/VB
able/JJ
to/TO
compete/VB
fiercely/RB
in/IN
an/DT
economic/JJ
downturn/NN
./.
McDonald/NNP
's/POS
has/VBZ
long-term/JJ
debt/NN
equaling/VBG
91/CD
%/NN
of/IN
shareholder/NN
equity/NN
currently/RB
,/,
but/CC
Mr./NNP
Kerschner/NNP
said/VBD
the/DT
company/NN
is/VBZ
carrying/VBG
real/JJ
estate/NN
assets/NNS
at/IN
about/RB
$/$
2.6/CD
billion/CD
below/IN
their/PRP$
real/JJ
value/NN
./.
Coca-Cola/NNP
climbed/VBD
1/CD
3\/8/CD
to/TO
72/CD
1\/8/CD
;/:
McDonald/NNP
's/VBZ
added/VBD
1/CD
to/TO
31/CD
3\/8/CD
,/,
and/CC
Procter/NNP
&/CC
Gamble/NNP
gained/VBD
3\/4/CD
to/TO
130/CD
5\/8/CD
./.
A&P/NNP
fell/VBD
1/CD
1\/4/CD
to/TO
57/CD
5\/8/CD
,/,
and/CC
J./NNP
Baker/NNP
gained/VBD
3\/8/CD
to/TO
21/CD
1\/4/CD
./.
Philip/NNP
Morris/NNP
slipped/VBD
1\/2/CD
to/TO
43/CD
7\/8/CD
,/,
while/IN
Sara/NNP
Lee/NNP
closed/VBD
unchanged/JJ
at/IN
60/CD
1\/8/CD
./.
According/VBG
to/TO
Salomon/NNP
Brothers/NNP
'/POS
``/``
stub/NN
''/''
stock/NN
index/NN
of/IN
20/CD
companies/NNS
whose/WP$
debt/NN
is/VBZ
giant/NN
compared/VBN
with/IN
shareholder/NN
equity/NN
,/,
investors/NNS
are/VBP
already/RB
beginning/VBG
to/TO
retreat/VB
from/IN
shares/NNS
of/IN
debt-laden/JJ
companies/NNS
./.
From/IN
January/NNP
to/TO
early/JJ
September/NNP
,/,
the/DT
index/NN
of/IN
stub/NN
stocks/NNS
--/:
the/DT
tiny/JJ
portion/NN
of/IN
equity/NN
that/WDT
's/VBZ
publicly/RB
traded/VBN
following/VBG
a/DT
recapitalization/NN
--/:
outperformed/VBD
Standard/NNP
&/CC
Poor/NNP
's/POS
500-stock/JJ
index/NN
by/IN
about/RB
20/CD
%/NN
./.
But/CC
starting/VBG
in/IN
early/JJ
September/NNP
,/,
the/DT
index/NN
started/VBD
to/TO
slide/VB
and/CC
now/RB
stands/VBZ
about/RB
even/RB
with/IN
the/DT
S&P/NNP
500/CD
./.
``/``
Stocks/NNS
that/WDT
have/VBP
a/DT
high/JJ
default/NN
risk/NN
have/VBP
started/VBN
to/TO
underperform/VB
those/DT
stocks/NNS
that/WDT
have/VBP
a/DT
lower/JJR
default/NN
risk/NN
,/,
''/''
said/VBD
Eric/NNP
Sorenson/NNP
,/,
director/NN
of/IN
quantitative/JJ
analysis/NN
at/IN
Salomon/NNP
Brothers/NNP
./.
``/``
Companies/NNS
that/WDT
have/VBP
the/DT

most/JJS
exposure/NN
to/TO
the/DT
business/NN
cycle/NN
have/VBP
underperformed/VBN
since/IN
late/RB
last/JJ
summer/NN
./.
''/''
Union/NNP
Carbide/NNP
,/,
whose/WP$
third-quarter/JJ
earnings/NNS
dropped/VBD
about/RB
35/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
and/CC
fell/VBD
short/RB
of/IN
analysts/NNS
'/POS
expectations/NNS
,/,
declined/VBD
1\/2/CD
to/TO
24/CD
1\/2/CD
./.
Also/RB
,/,
Exxon/NNP
went/VBD
down/RB
3\/8/CD
to/TO
45/CD
3\/4/CD
and/CC
Allied-Signal/NNP
lost/VBD
7\/8/CD
to/TO
35/CD
1\/8/CD
even/RB
though/IN
the/DT
companies/NNS
'/POS
results/NNS
for/IN
the/DT
quarter/NN
were/VBD
in/IN
line/NN
with/IN
forecasts/NNS
./.
Other/JJ
weak/JJ
blue-chip/JJ
issues/NNS
included/VBD
Chevron/NNP
,/,
which/WDT
went/VBD
down/RB
2/CD
to/TO
64/CD
7\/8/CD
in/IN
Big/NNP
Board/NNP
composite/JJ
trading/NN
of/IN
1.3/CD
million/CD
shares/NNS
;/:
Goodyear/NNP
Tire/NNP
&/CC
Rubber/NNP
,/,
off/RB
1/CD
1\/2/CD
to/TO
46/CD
3\/4/CD
,/,
and/CC
American/NNP
Express/NNP
,/,
down/RB
3\/4/CD
to/TO
37/CD
1\/4/CD
./.
Texas/NNP
Instruments/NNP
,/,
which/WDT
had/VBD
reported/VBN
Friday/NNP
that/IN
third-quarter/JJ
earnings/NNS
fell/VBD
more/RBR
than/IN
30/CD
%/NN
from/IN
the/DT
year-ago/JJ
level/NN
,/,
went/VBD
down/RBR
2/CD
1\/8/CD
to/TO
33/CD
on/IN
1.1/CD
million/CD
shares/NNS
./.
Motorola/NNP
,/,
another/DT
major/JJ
semiconductor/NN
producer/NN
,/,
dropped/VBD
1/CD
1\/8/CD
to/TO
57/CD
1\/2/CD
./.
Pinnacle/NNP
West/NNP
Capital/NNP
,/,
whose/WP$
earnings/NNS
have/VBP
been/VBN
hurt/VBN
by/IN
continued/JJ
problems/NNS
at/IN
its/PRP$
MeraBank/NNP
unit/NN
,/,
fell/VBD
1/CD
5\/8/CD
to/TO
9/CD
1\/8/CD
on/IN
2.1/CD
million/CD
shares/NNS
to/TO
lead/VB
the/DT
Big/NNP
Board/NNP
's/POS
list/NN
of/IN
most/RBS
active/JJ
issues/NNS
./.
Growing/VBG
pressures/NNS
on/IN
the/DT
Arizona/NNP
real-estate/NN
market/NN
are/VBP
affecting/VBG
the/DT
thrift/NN
;/:
Pinnacle/NNP
West/NNP
told/VBD
Dow/NNP
Jones/NNP
Professional/NNP
Investor/NNP
Report/NNP
it/PRP
may/MD
consider/VB
filing/VBG
for/IN
Chapter/NNP
11/NNP
bankruptcy/NN
protection/NN
if/IN
it/PRP
ca/MD
n't/RB
reach/VB
an/DT
agreement/NN
with/IN
federal/JJ
regulators/NNS
to/TO
provide/VB
additional/JJ
capital/NN
to/TO
MeraBank/NNP
./.
Hercules/NNP
dropped/VBD
2/CD
5\/8/CD
to/TO
41/CD
3\/4/CD
on/IN
one/CD
million/CD
shares/NNS
--/:
about/RB
six/CD
times/NNS
its/PRP$
average/NN
daily/JJ
trading/NN
volume/NN
--/:
after/IN
a/DT
disappointing/JJ
third-quarter/JJ
earnings/NNS
report/NN
./.
Merrill/NNP
Lynch/NNP
and/CC
Prudential-Bache/NNP
Securities/NNP
both/DT
lowered/VBD
the/DT
stock/NN
's/POS
investment/NN
rating/NN
immediately/RB
after/IN
the/DT
results/NNS
were/VBD
issued/VBN
Friday/NNP
,/,
according/VBG
to/TO
PIR/NNP
./.
Elsewhere/RB
in/IN
the/DT
chemicals/NNS
sector/NN
,/,
Dow/NNP
Chemical/NNP
fell/VBD
1/CD
1\/4/CD
to/TO
97/CD
1\/2/CD
,/,
Monsanto/NNP
lost/VBD
1/CD
7\/8/CD
to/TO
118/CD
,/,
B.F./NNP
Goodrich/NNP
slipped/VBD
2/CD
1\/4/CD
to/TO
44/CD
3\/4/CD
and/CC
Olin/NNP
slid/VBD
1/CD
to/TO
57/CD
3\/4/CD
./.
Other/JJ
stocks/NNS
hurt/VBN
by/IN
earnings-related/JJ
selling/NN
included/VBN
Tandy/NNP
,/,
which/WDT
dropped/VBD
1/CD
3\/8/CD
to/TO
44/CD
,/,
and/CC
Eaton/NNP
,/,
which/WDT
retreated/VBD
2/CD
1\/2/CD
to/TO
57/CD
1\/2/CD
./.
Third-quarter/JJ
earnings/NNS
at/IN
both/DT
companies/NNS
were/VBD
below/IN
analysts/NNS
'/POS
forecasts/NNS
./.
After/IN
declining/VBG
about/RB
41/CD
%/NN
last/JJ
week/NN
,/,
UAL/NNP
advanced/VBD
9/CD
7\/8/CD
to/TO
178/CD
3\/8/CD
on/IN
1.1/CD
million/CD
shares/NNS
on/IN
anticipation/NN
of/IN
a/DT
revised/JJ
takeover/NN
offer/NN
from/IN
a/DT
labor-management/NN
group/NN
for/IN
the/DT
parent/JJ
company/NN
of/IN
United/NNP
Airlines/NNP
./.
However/RB
,/,
Delta/NNP
Air/NNP
Lines/NNP
fell/VBD
1/CD
1\/2/CD
to/TO
67/CD
1\/2/CD
and/CC
USAir/NNP
Group/NNP
dropped/VBD
3\/4/CD
to/TO
42/CD
1\/2/CD
./.
Ramada/NNP
gained/VBD
7\/8/CD
to/TO
11/CD
1\/4/CD
after/IN
revamping/VBG
the/DT
terms/NNS
of/IN
its/PRP$
restructuring/VBG
plan/NN
,/,
which/WDT
calls/VBZ
for/IN
the/DT
company/NN
to/TO
sell/VB
its/PRP$
hotel/NN
operations/NNS
for/IN
$/$
540/CD
million/CD
and/CC
spin/VB
off/RP
its/PRP$
casino/NN
business/NN
to/TO
shareholders/NNS
./.
The/DT
revision/NN
follows/VBZ
last/JJ
month/NN
's/POS
withdrawal/NN
of/IN
a/DT
$/$
400/CD
million/CD
junk-bond/NNS
offering/NN
for/IN
the/DT
new/JJ
casino/NN
company/NN
,/,
Aztar/NNP
Corp/NNP
./.
Mead/NNP
gained/VBD
1/CD
to/TO
37/CD
7\/8/CD
./.
USA/NNP
Today/NNP
reported/VBD
that/IN
the/DT
Rales/NNP
brothers/NNS
,/,
Washington/NNP
,/,
D.C.-based/JJ
investors/NNS
who/WP
made/VBD
an/DT
unsuccessful/JJ
offer/NN
to/TO
acquire/VB
Interco/NNP
last/JJ
year/NN
,/,
have/VBP
bought/VBN
nearly/RB
3/CD
%/NN
of/IN
Mead/NNP
's/POS
common/JJ
shares/NNS
./.
Entertainment/NN
and/CC
media/NNS
stocks/NNS
generally/RB
escaped/VBD
the/DT
market/NN
's/POS
slide/NN
as/RB
well/RB
./.
Paramount/NNP
Communications/NNP
rose/VBD
5\/8/CD
to/TO
58/CD
3\/4/CD
,/,
Time/NNP
Warner/NNP
climbed/VBD
1/CD
7\/8/CD
to/TO
138/CD
5\/8/CD
,/,
Walt/NNP
Disney/NNP
advanced/VBD
3/CD
1\/8/CD
to/TO
127/CD
1\/2/CD
,/,
MCA/NNP
rose/VBD
1/CD
1\/8/CD
to/TO
65/CD
5\/8/CD
and/CC
McGraw-Hill/NNP
added/VBD
1\/2/CD
to/TO
67/CD
1\/8/CD
./.
The/DT
American/NNP
Stock/NNP
Exchange/NNP
Market/NNP
Value/NNP
Index/NNP
lost/VBD
3.11/CD
to/TO
379.46/CD
./.
Volume/NN
totaled/VBD
10,450,000/CD
shares/NNS
./.
Carnival/NNP
Cruise/NNP
Lines/NNP
Class/NNP
A/NNP
fell/VBD
1/CD
3\/4/CD
to/TO
20/CD
3\/4/CD
./.
The/DT
company/NN
said/VBD
it/PRP
had/VBD
been/VBN
notified/VBN
unofficially/RB
that/IN
Waertsilae/NNP
Marine/NNP
Industries/NNP
,/,
a/DT
Finnish/JJ
shipyard/NN
building/VBG
three/CD
cruise/NN
ships/NNS
for/IN
the/DT
company/NN
,/,
is/VBZ
having/VBG
financial/JJ
trouble/NN
and/CC
may/MD
already/RB
have/VB
filed/VBN
for/IN
bankruptcy/NN
./.
``/``
Hacksaw/NNP
''/''
and/CC
``/``
Bonecrusher/NNP
''/''
are/VBP
the/DT
sort/NN
of/IN
nicknames/NNS
normally/RB
associated/VBN
with/IN
linebackers/NNS
and/CC
heavyweight/JJ
contenders/NNS
./.
Who/WP
'd/MD
have/VB
thought/VBN
that/IN
the/DT
next/JJ
group/NN
of/IN
tough/JJ
guys/NNS
carrying/VBG
around/IN
reputations/NNS
like/IN
that/DT
would/MD
be/VB
school/NN
superintendents/NNS
?/.
Chicago/NNP
's/POS
new/JJ
school/NN
chief/NN
is/VBZ
the/DT
hard-nosed/JJ
Ted/NNP
Kimbrough/NNP
./.
At/IN
his/PRP$
old/JJ
job/NN
in/IN
Compton/NNP
,/,
Calif./NNP
,/,
he/PRP
took/VBD
a/DT
bitter/JJ
teachers/NNS
'/POS
strike/NN
and/CC
nearly/RB
came/VBD
to/TO
blows/NNS
with/IN
a/DT
school-board/NN
member/NN
./.
At/IN
his/PRP$
first/JJ
Chicago/NNP
press/NN
conference/NN
,/,
he/PRP
berated/VBD
the/DT
reporters/NNS
./.
In/IN
New/NNP
York/NNP
City/NNP
,/,
the/DT
new/JJ
Chancellor/NNP
,/,
Joseph/NNP
Fernandez/NNP
,/,
has/VBZ
landed/VBN
like/IN
a/DT
16-inch/JJ
shell/NN
in/IN
the/DT
middle/NN
of/IN
a/DT
system/NN
that/WDT
has/VBZ
been/VBN
impervious/JJ
to/TO
serious/JJ
reform/NN
./.
Both/DT
men/NNS
fit/VBP
the/DT
mood/NN
of/IN
the/DT
times/NNS
--/:
the/DT
mood/NN
being/VBG
one/CD
of/IN
a/DT
public/NN
fed/VBN
up/RP
with/IN
officials/NNS
'/POS
rationalizations/NNS
for/IN
why/WRB
their/PRP$
schools/NNS
do/VBP
n't/RB
work/VB
./.
Former/NNP
Patterson/NNP
,/,
N.J./NNP
,/,
principal/NN
Joe/NNP
Clark/NNP
was/VBD
no/DT
doubt/NN
the/DT
general/JJ
public/NN
's/POS
first/JJ
experience/NN
with/IN
this/DT
new/JJ
breed/NN
of/IN
no-nonsense/JJ
administrator/NN
./.
The/DT
subject/NN
of/IN
the/DT
movie/NN
``/``
Lean/VB
on/IN
Me/PRP
,/,
''/''
Mr./NNP
Clark/NNP
controlled/VBD
his/PRP$
school/NN
with/IN
a/DT
bullhorn/NN
and/CC
a/DT
baseball/NN
bat/NN
./.
He/PRP
may/MD
have/VB
gone/VBN
overboard/RB
in/IN
his/PRP$
pursuit/NN
of/IN
good/JJ
discipline/NN
,/,
but/CC
is/VBZ
n't/RB
it/PRP
interesting/JJ
that/IN
some/DT
of/IN
the/DT
country/NN
's/POS
biggest/JJS
,/,
most/RBS
troubled/JJ
school/NN
districts/NNS
are/VBP
choosing/VBG
new/JJ
chiefs/NNS
from/IN
the/DT
same/JJ
gravel-chewing/JJ
mold/NN
?/.
Elena/NNP
Scambio/NNP
,/,
the/DT
woman/NN
assigned/VBN
to/TO
run/VB
the/DT
Jersey/NNP
City/NNP
school/NN
system/NN
that/WDT
was/VBD
taken/VBN
over/RP
by/IN
the/DT
state/NN
,/,
says/VBZ
her/PRP$
top/JJ
priority/NN
will/MD
be/VB
to/TO
``/``
cut/VB
through/IN
the/DT
dead/JJ
hand/NN
of/IN
bureaucracy/NN
./.
''/''
Mr./NNP
Fernandez/NNP
does/VBZ
n't/RB
take/VB
control/NN
in/IN
New/NNP
York/NNP
until/IN
January/NNP
,/,
but/CC
already/RB
he/PRP
's/VBZ
roiling/VBG
the/DT
waters/NNS
./.
He/PRP
's/VBZ
attacked/VBN
the/DT
concept/NN
of/IN
``/``
building/NN
tenure/NN
,/,
''/''
one/CD
of/IN
the/DT
most/RBS
disgraceful/JJ
institutions/NNS
in/IN
American/JJ
public/JJ
schools/NNS
./.
It/PRP
means/VBZ
it/PRP
is/VBZ
virtually/RB
impossible/JJ
to/TO
fire/VB
or/CC
even/RB
transfer/VB
incompetent/JJ
principals/NNS
./.
Once/RB
they/PRP
are/VBP
in/IN
the/DT
building/NN
,/,
they/PRP
stay/VBP
./.
One/CD
South/NNP
Bronx/NNP
principal/NN
kept/VBD
his/PRP$
job/NN
for/IN
16/CD
years/NNS
,/,
despite/IN
a/DT
serious/JJ
drinking/NN
problem/NN
and/CC
rarely/RB
showing/VBG
up/RP
for/IN
work/NN
./.
He/PRP
was/VBD
finally/RB
given/VBN
leave/NN
when/WRB
he/PRP
was/VBD
arrested/VBN
for/IN
allegedly/RB
buying/VBG
crack/NN
./.
Naturally/RB
,/,
the/DT
principals/NNS
'/POS
union/NN
loves/VBZ
building/NN
tenure/NN
,/,
and/CC
tenure/NN
has/VBZ
withstood/VBN
previous/JJ
challenge/NN
./.
We/PRP
suggest/VBP
that/IN
Mr./NNP
Fernandez/NNP
find/VB
an/DT
incompetent/JJ
principal/NN
,/,
toss/VB
him/PRP
out/IN
of/IN
the/DT
building/NN
and/CC
let/VB
the/DT
forces/NNS
of/IN
the/DT
status/NN
quo/NN
explain/VB
to/TO
the/DT
parents/NNS
whatever/WDT
it/PRP
is/VBZ
they/PRP
're/VBP
defending/VBG
./.
In/IN
his/PRP$
old/JJ
job/NN
,/,
as/IN
Dade/NNP
County/NNP
chief/NN
,/,
Mr./NNP
Fernandez/NNP
forced/VBD
out/RP
92/CD
teachers/NNS
and/CC
reshuffled/VBD
48/CD
principals/NNS
./.
He/PRP
cut/VBD
the/DT
dropout/NN
rate/NN
by/IN
5.5/CD
%/NN
./.
But/CC
the/DT
no-more-nonsense/JJ
superintendents/NNS
are/VBP
going/VBG
to/TO
have/VB
to/TO
be/VB
judicious/JJ
as/IN
well/RB
;/:
incompetent/JJ
principals/NNS
and/CC
administrators/NNS
should/MD
go/VB
,/,
but/CC
the/DT
good/JJ
ones/NNS
ought/MD
to/TO
be/VB
left/VBN
alone/RB
./.
The/DT
situation/NN
will/MD
be/VB
especially/RB
delicate/JJ
for/IN
Mr./NNP
Kimbrough/NNP
./.
He/PRP
takes/VBZ
over/RP
a/DT
school/NN
system/NN
in/IN
the/DT
midst/NN
of/IN
radical/JJ
reform/NN
./.
Chicagoans/NNPS
have/VBP
just/RB
elected/VBN
540/CD
neophyte/JJ
school/NN
boards/NNS
,/,
one/CD
for/IN
each/DT
school/NN
./.
This/DT
of/IN
course/NN
led/VBD
to/TO
disaster/NN
in/IN
New/NNP
York/NNP
City/NNP
./.
Getting/VBG
a/DT
community/NN
of/IN
parents/NNS
to/TO
care/VB
again/RB
about/IN
its/PRP$
schools/NNS
is/VBZ
essential/JJ
,/,
but/CC
in/IN
Chicago/NNP
the/DT
new/JJ
boards/NNS
will/MD
make/VB
mistakes/NNS
and/CC
Mr./NNP
Kimbrough/NNP
will/MD
have/VB
to/TO
identify/VB
them/PRP
./.
The/DT
rise/NN
of/IN
superintendents/NNS
such/JJ
as/IN
Joseph/NNP
Fernandez/NNP
and/CC
Ted/NNP
Kimbrough/NNP
suggests/VBZ
plainly/RB
the/DT
process/NN
of/IN
disintegration/NN
in/IN
many/JJ
school/NN
systems/NNS
./.
The/DT
schools/NNS
'/POS
central/JJ
mission/NN
,/,
educating/VBG
children/NNS
,/,
became/VBD
subsumed/VBN
by/IN
the/DT
competing/VBG|JJ
interests/NNS
of/IN
bureaucrats/NNS
,/,
politicians/NNS
and/CC
unions/NNS
./.
The/DT
classroom/NN
itself/PRP
operated/VBD
on/IN
the/DT
periphery/NN
of/IN
this/DT
awful/JJ
system/NN
,/,
discipline/NN
collapsed/VBD
,/,
and/CC
kids/NNS
stopped/VBD
learning/VBG
./.
Mr./NNP
Chips/NNP
was/VBD
a/DT
nice/JJ
fellow/NN
,/,
and/CC
maybe/RB
some/DT
day/NN
he/PRP
'll/MD
return/VB
./.
Until/IN
then/RB
,/,
it/PRP
's/VBZ
clear/JJ
that/IN
some/DT
of/IN
the/DT
people/NNS
who/WP
've/VBP
been/VBN
keeping/VBG
big-city/JJ
schools/NNS
down/IN
are/VBP
going/VBG
to/TO
be/VB
dealing/VBG
with/IN
the/DT
Terminator/NNP
./.
Ingersoll/NNP
Publications/NNP
Co./NNP
agreed/VBD
to/TO
buy/VB
the/DT
New/NNP
Haven/NNP
Register/NNP
in/IN
a/DT
transaction/NN
valued/VBN
at/IN
$/$
275/CD
million/CD
from/IN
Goodson/NNP
Newspaper/NNP
Group/NNP
Inc/NNP
./.
As/IN
part/NN
of/IN
the/DT
agreement/NN
,/,
Goodson/NNP
also/RB
terminated/VBD
the/DT
contract/NN
under/IN
which/WDT
Ingersoll/NNP
manages/VBZ
Goodson/NNP
's/POS
66/CD
newspapers/NNS
,/,
ending/VBG
a/DT
long/JJ
association/NN
between/IN
the/DT
two/CD
companies/NNS
that/WDT
has/VBZ
turned/VBN
increasingly/RB
bitter/JJ
recently/RB
./.
Goodson/NNP
has/VBZ
accused/VBN
Ingersoll/NNP
of/IN
paying/VBG
less/JJR
attention/NN
to/TO
its/PRP$
properties/NNS
and/CC
more/JJR
to/TO
such/JJ
ventures/NNS
as/IN
the/DT
recent/JJ
launch/NN
of/IN
the/DT
St./NNP
Louis/NNP
Sun/NNP
./.
Under/IN
the/DT
terms/NNS
of/IN
the/DT
accord/NN
,/,
Ingersoll/NNP
will/MD
pay/VB
about/RB
$/$
255/CD
million/CD
for/IN
the/DT
Register/NNP
,/,
a/DT
daily/NN
that/IN
Goodson/NNP
bought/VBN
for/IN
about/RB
$/$
170/CD
million/CD
in/IN
1986/CD
./.
Goodson/NNP
will/MD
pay/VB
the/DT
additional/JJ
$/$
20/CD
million/CD
in/IN
settlement/NN
of/IN
the/DT
management/NN
contract/NN
./.
Goodson/NNP
also/RB
announced/VBD
that/IN
it/PRP
hired/VBD
the/DT
former/JJ
president/NN
and/CC
senior/JJ
vice/NN
president/NN
of/IN
Ingersoll/NNP
to/TO
run/VB
the/DT
Goodson/NNP
papers/NNS
./.
Both/DT
executives/NNS
left/VBD
the/DT
company/NN
after/IN
clashes/NNS
with/IN
Chairman/NNP
Ralph/NNP
Ingersoll/NNP
Jr/NNP
./.
Goodson/NNP
,/,
which/WDT
is/VBZ
based/VBN
here/RB
,/,
will/MD
use/VB
part/NN
of/IN
the/DT
proceeds/NNS
to/TO
pay/VB
down/RP
debt/NN
associated/VBN
with/IN
its/PRP$
purchase/NN
of/IN
the/DT
Morristown/NNP
Daily/NNP
Record/NNP
for/IN
$/$
155/CD
million/CD
in/IN
1987/CD
./.
The/DT
New/NNP
Jersey/NNP
paper/NN
,/,
like/IN
the/DT
New/NNP
Haven/NNP
,/,
Conn./NNP
,/,
paper/NN
,/,
was/VBD
purchased/VBN
by/IN
Ingersoll/NNP
on/IN
Goodson/NNP
's/POS
behalf/NN
as/IN
part/NN
of/IN
the/DT
management/NN
contract/NN
./.
Industry/NN
analysts/NNS
have/VBP
said/VBN
that/IN
the/DT
purchase/NN
price/NN
for/IN
the/DT
paper/NN
was/VBD
too/RB
high/JJ
,/,
causing/VBG
a/DT
strain/NN
on/IN
Goodson/NNP
's/POS
finances/NNS
./.
Investment/NN
bankers/NNS
familiar/JJ
with/IN
the/DT
company/NN
said/VBD
Goodson/NNP
is/VBZ
seeking/VBG
a/DT
new/JJ
bank/NN
credit/NN
line/NN
of/IN
$/$
190/CD
million/CD
and/CC
may/MD
have/VB
to/TO
sell/VB
additional/JJ
newspapers/NNS
./.
David/NNP
N./NNP
Hurwitz/NNP
,/,
president/NN
and/CC
chief/NN
operating/NN
officer/NN
of/IN
Goodson/NNP
,/,
said/VBD
in/IN
a/DT
telephone/NN
interview/NN
that/IN
the/DT
company/NN
does/VBZ
n't/RB
currently/RB
have/VB
any/DT
plans/NNS
to/TO
sell/VB
additional/JJ
newspapers/NNS
./.
Goodson/NNP
said/VBD
David/NNP
Carr/NNP
,/,
former/JJ
president/NN
of/IN
Ingersoll/NNP
Publications/NNP
,/,
and/CC
Ray/NNP
Cockburn/NNP
,/,
former/JJ
senior/JJ
vice/NN
president/NN
,/,
would/MD
head/VB
the/DT
new/JJ
in-house/JJ
management/NN
team/NN
at/IN
Goodson/NNP
,/,
which/WDT
had/VBD
revenue/NN
of/IN
$/$
225/CD
million/CD
in/IN
1988/CD
./.
The/DT
association/NN
between/IN
the/DT
two/CD
companies/NNS
stretches/VBZ
back/RB
thirty/CD
years/NNS
to/TO
a/DT
friendship/NN
between/IN
television/NN
producer/NN
Mark/NNP
Goodson/NNP
and/CC
Ingersoll/NNP
founder/NN
Ralph/NNP
Ingersoll/NNP
./.
The/DT
latter/NN
's/POS
son/NN
,/,
Ralph/NNP
Ingersoll/NNP
Jr./NNP
,/,
took/VBD
over/IN
the/DT
company/NN
and/CC
has/VBZ
been/VBN
managing/VBG
the/DT
Goodson/NNP
properties/NNS
and/CC
acting/VBG
as/IN
an/DT
agent/NN
in/IN
the/DT
purchase/NN
of/IN
newspapers/NNS
for/IN
Goodson/NNP
./.
But/CC
in/IN
recent/JJ
years/NNS
,/,
Mr./NNP
Ingersoll/NNP
began/VBD
focusing/VBG
more/RBR
on/IN
expanding/VBG
his/PRP$
own/JJ
newspaper/NN
empire/NN
in/IN
partnership/NN
with/IN
investment/NN
banking/NN
firm/NN
Warburg/NNP
,/,
Pincus/NNP
&/CC
Co/NNP
./.
Ingersoll/NNP
has/VBZ
28/CD
dailies/NNS
and/CC
200/CD
other/JJ
non-daily/JJ
papers/NNS
in/IN
the/DT
U.S./NNP
and/CC
Europe/NNP
./.
The/DT
company/NN
said/VBD
its/PRP$
revenue/NN
will/MD
exceed/VB
$/$
750/CD
million/CD
this/DT
year/NN
./.
Ingersoll/NNP
President/NNP
Robert/NNP
M./NNP
Jelenic/NNP
said/VBD
in/IN
a/DT
statement/NN
that/IN
the/DT
company/NN
is/VBZ
``/``
delighted/JJ
by/IN
the/DT
conclusion/NN
of/IN
the/DT
Goodson/NNP
relationship/NN
''/''
and/CC
will/MD
be/VB
able/JJ
to/TO
``/``
concentrate/VB
all/PDT
our/PRP$
energies/NNS
''/''
on/IN
Ingersoll/NNP
's/POS
own/JJ
papers/NNS
./.
Mr./NNP
Goodson/NNP
,/,
in/IN
his/PRP$
own/JJ
statement/NN
,/,
was/VBD
less/RBR
upbeat/JJ
,/,
saying/VBG
``/``
unfortunately/RB
over/IN
the/DT
past/JJ
few/JJ
years/NNS
,/,
it/PRP
has/VBZ
become/VBN
increasingly/RB
clear/JJ
that/IN
Ralph/NNP
and/CC
I/PRP
have/VBP
different/JJ
agendas/NNS
,/,
''/''
and/CC
that/IN
he/PRP
feels/VBZ
``/``
more/RBR
comfortable/JJ
with/IN
a/DT
management/NN
team/NN
whose/WP$
sole/JJ
interest/NN
and/CC
responsibility/NN
is/VBZ
in/IN
the/DT
Goodson/NNP
papers/NNS
./.
''/''
Just/RB
five/CD
months/NNS
after/IN
Ogilvy/NNP
Group/NNP
was/VBD
swallowed/VBN
up/RP
in/IN
an/DT
unsolicited/JJ
takeover/NN
,/,
Kenneth/NNP
Roman/NNP
,/,
Ogilvy/NNP
's/POS
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
said/VBD
he/PRP
is/VBZ
leaving/VBG
to/TO
take/VB
a/DT
top/JJ
post/NN
at/IN
American/NNP
Express/NNP
Co/NNP
./.
Mr./NNP
Roman/NNP
,/,
59/CD
years/NNS
old/JJ
,/,
abruptly/RB
announced/VBD
he/PRP
will/MD
leave/VB
the/DT
venerable/JJ
ad/NN
agency/NN
,/,
whose/WP$
largest/JJS
client/NN
is/VBZ
American/NNP
Express/NNP
,/,
to/TO
become/VB
American/NNP
Express/NNP
's/POS
executive/JJ
vice/NN
president/NN
for/IN
corporate/JJ
affairs/NNS
and/CC
communications/NNS
./.
He/PRP
will/MD
succeed/VB
Harry/NNP
L./NNP
Freeman/NNP
,/,
57/CD
,/,
who/WP
has/VBZ
said/VBD
he/PRP
will/MD
retire/VB
in/IN
December/NNP
./.
Mr./NNP
Freeman/NNP
said/VBD
in/IN
August/NNP
that/IN
he/PRP
would/MD
retire/VB
by/IN
the/DT
end/NN
of/IN
this/DT
year/NN
to/TO
take/VB
``/``
executive/JJ
responsibility/NN
''/''
for/IN
an/DT
embarrassing/JJ
effort/NN
to/TO
discredit/VB
banker/NN
Edmond/NNP
Safra/NNP
./.
American/NNP
Express/NNP
representatives/NNS
apparently/RB
influenced/VBD
the/DT
publication/NN
of/IN
unfavorable/JJ
articles/NNS
about/IN
Mr./NNP
Safra/NNP
./.
The/DT
company/NN
later/RB
apologized/VBD
and/CC
agreed/VBD
to/TO
make/VB
$/$
8/CD
million/CD
in/IN
contributions/NNS
to/TO
charities/NNS
chosen/VBN
by/IN
him/PRP
./.
Although/IN
Mr./NNP
Freeman/NNP
is/VBZ
retiring/VBG
,/,
he/PRP
will/MD
continue/VB
to/TO
work/VB
as/IN
a/DT
consultant/NN
for/IN
American/NNP
Express/NNP
on/IN
a/DT
project/NN
basis/NN
./.
Ad/NN
industry/NN
executives/NNS
were/VBD
n't/RB
surprised/JJ
by/IN
Mr./NNP
Roman/NNP
's/POS
decision/NN
to/TO
leave/VB
Ogilvy/NNP
./.
The/DT
agency/NN
,/,
under/IN
his/PRP$
direction/NN
,/,
bitterly/RB
fought/VBD
a/DT
takeover/NN
attempt/NN
by/IN
WPP/NNP
Group/NNP
PLC/NNP
of/IN
London/NNP
before/IN
succumbing/VBG
in/IN
May/NNP
./.
And/CC
although/IN
Mr./NNP
Roman/NNP
and/CC
WPP/NNP
's/POS
chief/JJ
executive/NN
,/,
Martin/NNP
Sorrell/NNP
,/,
have/VBP
gone/VBN
out/IN
of/IN
their/PRP$
way/NN
to/TO
be/VB
publicly/RB
supportive/JJ
of/IN
each/DT
other/JJ
,/,
people/NNS
close/RB
to/TO
Mr./NNP
Roman/NNP
say/VBP
he/PRP
was/VBD
unhappy/JJ
giving/VBG
up/RP
control/NN
of/IN
the/DT
company/NN
./.
Some/DT
executives/NNS
also/RB
cite/VBP
tension/NN
because/IN
of/IN
efforts/NNS
by/IN
Mr./NNP
Sorrell/NNP
,/,
a/DT
financial/JJ
man/NN
,/,
to/TO
cut/VB
costs/NNS
at/IN
the/DT
agency/NN
./.
Mr./NNP
Roman/NNP
will/MD
be/VB
succeeded/VBN
as/IN
the/DT
head/NN
of/IN
Ogilvy/NNP
's/POS
flagship/NN
ad/NN
agency/NN
,/,
Ogilvy/NNP
&/CC
Mather/NNP
Worldwide/NNP
,/,
by/IN
Graham/NNP
Phillips/NNP
,/,
50/CD
,/,
who/WP
had/VBD
been/VBN
president/NN
of/IN
North/JJ
American/JJ
operations/NNS
and/CC
who/WP
,/,
like/IN
Mr./NNP
Sorrell/NNP
,/,
is/VBZ
British/JJ
./.
Alexander/NNP
Brody/NNP
,/,
56/CD
,/,
will/MD
take/VB
on/RP
the/DT
newly/RB
created/VBN
position/NN
of/IN
president/NN
of/IN
the/DT
world-wide/JJ
agency/NN
and/CC
chief/JJ
executive/NN
of/IN
its/PRP$
international/JJ
operations/NNS
./.
He/PRP
had/VBD
been/VBN
president/NN
of/IN
the/DT
international/JJ
operations/NNS
./.
Mr./NNP
Roman/NNP
also/RB
had/VBD
overseen/VBN
Ogilvy/NNP
Group/NNP
's/POS
two/CD
other/JJ
units/NNS
,/,
the/DT
Scali/NNP
McCabe/NNP
Sloves/NNP
advertising/NN
agency/NN
and/CC
its/PRP$
research/NN
division/NN
,/,
but/CC
those/DT
units/NNS
will/MD
now/RB
report/VB
directly/RB
to/TO
WPP/NNP
./.
Mr./NNP
Roman/NNP
appears/VBZ
custom-made/JJ
for/IN
the/DT
American/NNP
Express/NNP
job/NN
./.
Known/VBN
as/IN
a/DT
traditional/JJ
executive/NN
,/,
he/PRP
is/VBZ
very/RB
much/RB
in/IN
the/DT
conservative/JJ
American/NNP
Express/NNP
mold/NN
./.
Moreover/RB
,/,
after/IN
26/CD
years/NNS
at/IN
Ogilvy/NNP
he/PRP
had/VBD
honed/VBN
a/DT
reputation/NN
for/IN
being/VBG
squeaky-clean/JJ
and/CC
a/DT
straight/JJ
arrow/NN
--/:
which/WDT
can/MD
only/RB
help/VB
American/NNP
Express/NNP
in/IN
the/DT
wake/NN
of/IN
the/DT
Safra/NNP
incident/NN
./.
He/PRP
also/RB
is/VBZ
close/RB
to/TO
American/NNP
Express/NNP
's/POS
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
James/NNP
D./NNP
Robinson/NNP
III/NNP
./.
Aside/RB
from/IN
working/VBG
with/IN
Mr./NNP
Robinson/NNP
on/IN
the/DT
American/NNP
Express/NNP
advertising/NN
account/NN
for/IN
about/RB
11/CD
years/NNS
,/,
Mr./NNP
Roman/NNP
serves/VBZ
on/IN
several/JJ
of/IN
the/DT
same/JJ
charities/NNS
and/CC
boards/NNS
as/IN
Mr./NNP
Robinson/NNP
./.
The/DT
abrupt/JJ
management/NN
change/NN
sparked/VBD
widespread/JJ
speculation/NN
that/IN
Mr./NNP
Roman/NNP
had/VBD
been/VBN
pushed/VBN
out/IN
of/IN
Ogilvy/NNP
's/POS
top/JJ
spot/NN
by/IN
Mr./NNP
Sorrell/NNP
./.
But/CC
Mr./NNP
Roman/NNP
flatly/RB
denied/VBD
the/DT
speculation/NN
,/,
saying/VBG
Mr./NNP
Sorrell/NNP
had/VBD
tried/VBN
several/JJ
times/NNS
to/TO
persuade/VB
him/PRP
to/TO
stay/VB
,/,
offering/VBG
various/JJ
incentives/NNS
and/CC
in/IN
one/CD
instance/NN
sending/VBG
a/DT
note/NN
with/IN
a/DT
case/NN
of/IN
wine/NN
The/DT
wine/NN
,/,
naturally/RB
,/,
was/VBD
Seagram/NNP
's/POS
brand/NN
,/,
an/DT
Ogilvy/NNP
client/NN
``/``
He/PRP
asked/VBD
me/PRP
not/RB
to/TO
resign/VB
./.
The/DT
implication/NN
that/IN
I/PRP
was/VBD
pushed/VBN
aside/RB
would/MD
n't/RB
be/VB
accurate/JJ
,/,
''/''
Mr./NNP
Roman/NNP
said/VBD
./.
Mr./NNP
Sorrell/NNP
,/,
traveling/VBG
in/IN
the/DT
Far/NNP
East/NNP
,/,
could/MD
n't/RB
be/VB
reached/VBN
./.
Mr./NNP
Roman/NNP
said/VBD
American/NNP
Express/NNP
's/POS
Mr./NNP
Robinson/NNP
first/RB
approached/VBD
him/PRP
about/IN
the/DT
job/NN
in/IN
late/JJ
September/NNP
./.
According/VBG
to/TO
industry/NN
executives/NNS
,/,
Peter/NNP
Sutherland/NNP
,/,
a/DT
former/JJ
European/NNP
Community/NNP
commissioner/NN
from/IN
Ireland/NNP
,/,
was/VBD
also/RB
a/DT
serious/JJ
contender/NN
for/IN
the/DT
American/NNP
Express/NNP
job/NN
./.
Although/IN
it/PRP
ultimately/RB
was/VBD
n't/RB
offered/VBD
to/TO
him/PRP
,/,
he/PRP
will/MD
be/VB
on/IN
retainer/NN
to/TO
American/NNP
Express/NNP
as/IN
an/DT
adviser/NN
on/IN
international/JJ
matters/NNS
./.
After/IN
talking/VBG
on/RB
and/CC
off/RB
for/IN
the/DT
past/JJ
four/CD
weeks/NNS
,/,
Mr./NNP
Roman/NNP
said/VBD
,/,
he/PRP
agreed/VBD
to/TO
take/VB
the/DT
job/NN
because/IN
``/``
it/PRP
's/VBZ
the/DT
right/JJ
time/NN
,/,
it/PRP
's/VBZ
a/DT
terrific/JJ
opportunity/NN
,/,
and/CC
I/PRP
think/VBP
I/PRP
leave/VBP
the/DT
company/NN
in/IN
very/RB
strong/JJ
hands/NNS
./.
It/PRP
was/VBD
my/PRP$
decision/NN
,/,
not/RB
anyone/NN
else/RB
's/POS
./.
''/''
Mr./NNP
Roman/NNP
also/RB
brushed/VBD
aside/RP
reports/NNS
about/IN
infighting/NN
between/IN
him/PRP
and/CC
Mr./NNP
Phillips/NNP
,/,
his/PRP$
successor/NN
at/IN
Ogilvy/NNP
./.
The/DT
two/CD
executives/NNS
could/MD
hardly/RB
be/VB
more/RBR
different/JJ
./.
Mr./NNP
Roman/NNP
comes/VBZ
across/RP
as/IN
a/DT
low-key/JJ
executive/NN
;/:
Mr./NNP
Phillips/NNP
has/VBZ
a/DT
flashier/JJR
personality/NN
./.
During/IN
time/NN
off/RB
,/,
Mr./NNP
Roman/NNP
tends/VBZ
to/TO
his/PRP$
garden/NN
;/:
Mr./NNP
Phillips/NNP
confesses/VBZ
to/TO
a/DT
fondness/NN
for/IN
,/,
among/IN
other/JJ
things/NNS
,/,
fast/JJ
cars/NNS
and/CC
planes/NNS
./.
Industry/NN
executives/NNS
say/VBP
that/IN
although/IN
the/DT
two/CD
executives/NNS
used/VBD
to/TO
clash/VB
more/RBR
frequently/RB
,/,
the/DT
WPP/NNP
takeover/NN
brought/VBD
them/PRP
closer/RB
together/RB
./.
``/``
I/PRP
'm/VBP
the/DT
guy/NN
who/WP
made/VBD
him/PRP
head/NN
of/IN
New/NNP
York/NNP
,/,
head/NN
of/IN
the/DT
U.S./NNP
,/,
president/NN
of/IN
North/NNP
America/NNP
,/,
and/CC
recommended/VBD
him/PRP
Mr./NNP
Sorrell/NNP
my/PRP$
successor/NN
./.
Would/MD
I/PRP
have/VB
done/VBN
all/PDT
those/DT
things/NNS
successively/RB
if/IN
I/PRP
did/VBD
n't/RB
think/VB
he/PRP
was/VBD
the/DT
right/JJ
guy/NN
?/.
''/''
Mr./NNP
Roman/NNP
asked/VBD
./.
He/PRP
labeled/VBD
reports/NNS
of/IN
friction/NN
``/``
ridiculous/JJ
,/,
''/''
and/CC
said/VBD
that/IN
he/PRP
spent/VBD
part/NN
of/IN
the/DT
weekend/NN
on/IN
Mr./NNP
Phillips/NNP
's/POS
boat/NN
in/IN
Connecticut/NNP
./.
Mr./NNP
Roman/NNP
will/MD
oversee/VB
American/NNP
Express/NNP
's/POS
public/JJ
relations/NNS
and/CC
government/NN
affairs/NNS
,/,
among/IN
other/JJ
things/NNS
,/,
but/CC
he/PRP
wo/MD
n't/RB
be/VB
involved/VBN
in/IN
its/PRP$
advertising/NN
,/,
which/WDT
is/VBZ
handled/VBN
by/IN
the/DT
operating/NN
units/NNS
./.
``/``
I/PRP
consider/VBP
this/DT
a/DT
second/JJ
career/NN
,/,
''/''
he/PRP
said/VBD
./.
He/PRP
also/RB
will/MD
sit/VB
on/IN
the/DT
company/NN
's/POS
corporate/JJ
planning/NN
and/CC
policy/NN
committee/NN
,/,
made/VBD
up/RP
of/IN
the/DT
top/JJ
corporate/JJ
and/CC
operating/NN
executives/NNS
./.
Mr./NNP
Roman/NNP
's/POS
departure/NN
is/VBZ
n't/RB
expected/VBN
to/TO
have/VB
any/DT
enormous/JJ
repercussions/NNS
at/IN
Ogilvy/NNP
./.
American/NNP
Express/NNP
,/,
Kraft/NNP
General/NNP
Foods/NNP
,/,
and/CC
Mattel/NNP
executives/NNS
said/VBD
the/DT
move/NN
wo/MD
n't/RB
affect/VB
their/PRP$
relationships/NNS
with/IN
the/DT
ad/NN
agency/NN
./.
``/``
General/NNP
Foods/NNP
's/POS
relationships/NNS
with/IN
its/PRP$
agencies/NNS
are/VBP
based/VBN
on/IN
the/DT
agencies/NNS
'/POS
work/NN
,/,
and/CC
will/MD
continue/VB
to/TO
be/VB
,/,
''/''
said/VBD
David/NNP
Hurwitt/NNP
,/,
a/DT
vice/NN
president/NN
of/IN
Kraft/NNP
General/NNP
Foods/NNP
./.
But/CC
some/DT
clients/NNS
and/CC
analysts/NNS
expressed/VBD
concern/NN
that/IN
Mr./NNP
Phillips/NNP
is/VBZ
n't/RB
as/RB
well-known/JJ
to/TO
many/JJ
clients/NNS
./.
``/``
Ken/NNP
was/VBD
my/PRP$
key/JJ
contact/NN
,/,
''/''
said/VBD
J./NNP
Nicholas/NNP
Hahn/NNP
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
Cotton/NNP
Inc./NNP
,/,
which/WDT
represents/VBZ
cotton/NN
producers/NNS
./.
``/``
I/PRP
do/VBP
n't/RB
know/VB
{/(
Mr./NNP
Phillips/NNP
all/RB
that/RB
well/RB
./.
I/PRP
have/VBP
n't/RB
seen/VBN
or/CC
talked/VBN
to/TO
him/PRP
in/IN
several/JJ
years/NNS
./.
''/''
And/CC
some/DT
analysts/NNS
questioned/VBD
whether/IN
Mr./NNP
Phillips/NNP
would/MD
have/VB
the/DT
skills/NNS
Ogilvy/NNP
needs/VBZ
to/TO
turn/VB
the/DT
agency/NN
around/RP
./.
While/IN
the/DT
agency/NN
has/VBZ
done/VBN
well/RB
in/IN
many/JJ
parts/NNS
of/IN
the/DT
world/NN
,/,
its/PRP$
flagship/NN
New/NNP
York/NNP
office/NN
has/VBZ
had/VBD
a/DT
dismal/JJ
track/NN
record/NN
recently/RB
;/:
it/PRP
has/VBZ
won/VBN
few/JJ
new/JJ
accounts/NNS
while/IN
losing/VBG
big/JJ
ones/NNS
,/,
including/VBG
Maxwell/NNP
House/NNP
./.
``/``
I/PRP
think/VBP
{/(
Mr./NNP
Phillips/NNP
some/DT
help/NN
./.
I/PRP
think/VBP
they/PRP
need/VBP
creative/JJ
leadership/NN
,/,
and/CC
I/PRP
do/VBP
n't/RB
think/VB
they/PRP
have/VBP
it/PRP
,/,
''/''
said/VBD
Emma/NNP
Hill/NNP
,/,
an/DT
analyst/NN
with/IN
Wertheim/NNP
&/CC
Co/NNP
./.
Ogilvy/NNP
&/CC
Mather/NNP
's/POS
top/JJ
creative/JJ
executive/NN
,/,
Norman/NNP
Berry/NNP
,/,
left/VBD
the/DT
agency/NN
earlier/RBR
this/DT
year/NN
./.
``/``
Norm/NNP
Berry/NNP
was/VBD
a/DT
creative/JJ
inspiration/NN
at/IN
the/DT
company/NN
,/,
and/CC
nobody/NN
has/VBZ
filled/VBN
that/DT
void/NN
,/,
''/''
said/VBD
Ms./NNP
Hill/NNP
./.
But/CC
other/JJ
analysts/NNS
said/VBD
that/IN
having/VBG
Mr./NNP
Phillips/NNP
succeed/VB
Mr./NNP
Roman/NNP
would/MD
make/VB
for/IN
a/DT
smooth/JJ
transition/NN
./.
``/``
Graham/NNP
Phillips/NNP
has/VBZ
been/VBN
there/RB
a/DT
long/JJ
time/NN
,/,
knows/VBZ
the/DT
culture/NN
well/RB
,/,
is/VBZ
aggressive/JJ
,/,
and/CC
apparently/RB
gets/VBZ
along/RP
well/RB
with/IN
''/''
Mr./NNP
Sorrell/NNP
,/,
said/VBD
Andrew/NNP
Wallach/NNP
,/,
an/DT
analyst/NN
with/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
./.
``/``
It/PRP
's/VBZ
probably/RB
a/DT
reasonable/JJ
transition/NN
./.
Hopefully/RB
,/,
he/PRP
'll/MD
be/VB
the/DT
answer/NN
to/TO
the/DT
problems/NNS
they/PRP
've/VBP
had/VBD
in/IN
New/NNP
York/NNP
./.
''/''
Sale/NN
of/IN
Saatchi/NNP
Unit/NNP
Close/RB
Computer/NNP
Sciences/NNP
Corp./NNP
,/,
El/NNP
Segundo/NNP
,/,
Calif./NNP
,/,
said/VBD
it/PRP
is/VBZ
close/RB
to/TO
making/VBG
final/JJ
an/DT
agreement/NN
to/TO
buy/VB
Cleveland/NNP
Consulting/NNP
Associates/NNP
from/IN
Saatchi/NNP
&/CC
Saatchi/NNP
Computer/NNP
Sciences/NNP
would/MD
n't/RB
disclose/VB
the/DT
proposed/JJ
purchase/NN
price/NN
for/IN
Cleveland/NNP
Consulting/NNP
,/,
which/WDT
counsels/VBZ
companies/NNS
on/IN
logistics/NNS
and/CC
supply/NN
./.
But/CC
David/NNP
Lord/NNP
,/,
managing/NN
editor/NN
of/IN
Consultants/NNP
News/NNP
,/,
an/DT
industry/NN
publication/NN
based/VBN
in/IN
Fitzwilliam/NNP
,/,
N.H./NNP
,/,
said/VBD
an/DT
industry/NN
standard/NN
would/MD
suggest/VB
a/DT
purchase/NN
price/NN
of/IN
between/IN
one/CD
and/CC
two/CD
times/NNS
Cleveland/NNP
Consulting/NNP
's/POS
approximately/RB
$/$
15/CD
million/CD
annual/JJ
revenue/NN
./.
Both/DT
Saatchi/NNP
&/CC
Saatchi/NNP
,/,
which/WDT
announced/VBD
its/PRP$
intention/NN
to/TO
sell/VB
off/RP
most/JJS
of/IN
its/PRP$
consulting/NN
business/NN
in/IN
June/NNP
,/,
and/CC
Cleveland/NNP
Consulting/NNP
declined/VBD
to/TO
comment/VB
on/IN
the/DT
proposed/JJ
sale/NN
./.
Ad/NN
Notes/NNS
.../:
./.
NEW/JJ
ACCOUNT/NN
:/:
AmBase/NNP
Corp./NNP
,/,
New/NNP
York/NNP
,/,
awarded/VBD
the/DT
ad/NN
account/NN
for/IN
its/PRP$
Home/NNP
Insurance/NNP
Co./NNP
unit/NN
to/TO
Biederman/NNP
,/,
Kelly/NNP
&/CC
Shaffer/NNP
,/,
New/NNP
York/NNP
./.
Billings/NNS
were/VBD
n't/RB
disclosed/VBN
.../:
./.
Puerto/NNP
Rico/NNP
Telephone/NNP
Co./NNP
awarded/VBD
its/PRP$
$/$
3/CD
million/CD
account/NN
to/TO
West/NNP
Indies/NNP
&/CC
Grey/NNP
,/,
Grey/NNP
Advertising/NNP
's/POS
office/NN
in/IN
Puerto/NNP
Rico/NNP
./.
DIET/NNP
COKE/NNP
:/:
Coca-Cola/NNP
Co./NNP
yesterday/NN
said/VBD
singer/NN
Elton/NNP
John/NNP
signed/VBD
to/TO
appear/VB
in/IN
an/DT
ad/NN
for/IN
Diet/NNP
Coke/NNP
./.
Details/NNS
of/IN
the/DT
commercial/NN
,/,
which/WDT
will/MD
be/VB
part/NN
of/IN
the/DT
brand/NN
's/POS
1990/CD
advertising/NN
campaign/NN
,/,
were/VBD
n't/RB
disclosed/VBN
./.
Mr./NNP
John/NNP
becomes/VBZ
the/DT
latest/JJS
of/IN
many/JJ
music/NN
stars/NNS
,/,
including/VBG
George/NNP
Michael/NNP
and/CC
Whitney/NNP
Houston/NNP
,/,
to/TO
appear/VB
in/IN
ads/NNS
for/IN
the/DT
diet/NN
drink/NN
./.
Turner/NNP
Broadcasting/NNP
System/NNP
Inc./NNP
said/VBD
it/PRP
formed/VBD
a/DT
unit/NN
to/TO
make/VB
and/CC
distribute/VB
movies/NNS
to/TO
theaters/NNS
overseas/RB
and/CC
,/,
eventually/RB
,/,
to/TO
U.S./NNP
theaters/NNS
,/,
too/RB
./.
The/DT
operator/NN
of/IN
cable-television/NN
networks/NNS
said/VBD
the/DT
new/JJ
Turner/NNP
Pictures/NNP
unit/NN
will/MD
produce/VB
movies/NNS
that/WDT
will/MD
premiere/VB
on/IN
Turner/NNP
Broadcasting/NNP
's/POS
Turner/NNP
Network/NNP
Television/NNP
channel/NN
,/,
or/CC
TNT/NNP
,/,
and/CC
then/RB
will/MD
be/VB
released/VBN
internationally/RB
in/IN
movie/NN
theaters/NNS
./.
The/DT
unit/NN
's/POS
first/JJ
two/CD
offerings/NNS
are/VBP
slated/VBN
to/TO
be/VB
``/``
The/DT
Secret/JJ
Life/NN
of/IN
Ian/NNP
Fleming/NNP
,/,
''/''
a/DT
dramatization/NN
about/IN
the/DT
former/JJ
British/JJ
spy/NN
who/WP
wrote/VBD
the/DT
James/NNP
Bond/NNP
novels/NNS
,/,
and/CC
``/``
Treasure/NNP
Island/NNP
,/,
''/''
produced/VBN
by/IN
Charlton/NNP
Heston/NNP
,/,
who/WP
also/RB
stars/VBZ
in/IN
the/DT
movie/NN
./.
Ted/NNP
Turner/NNP
,/,
Turner/NNP
Broadcasting/NNP
's/POS
chairman/NN
,/,
was/VBD
named/VBN
chairman/NN
of/IN
Turner/NNP
Pictures/NNP
,/,
and/CC
Gerry/NNP
Hogan/NNP
,/,
president/NN
of/IN
Turner/NNP
Entertainment/NNP
Networks/NNP
,/,
was/VBD
named/VBN
president/NN
of/IN
the/DT
unit/NN
./.
In/IN
an/DT
interview/NN
,/,
Mr./NNP
Hogan/NNP
said/VBD
the/DT
subsidiary/NN
's/POS
primary/JJ
mission/NN
will/MD
be/VB
to/TO
make/VB
movies/NNS
for/IN
TNT/NNP
and/CC
to/TO
distribute/VB
them/PRP
internationally/RB
./.
But/CC
he/PRP
said/VBD
Turner/NNP
Broadcasting/NNP
already/RB
has/VBZ
found/VBN
some/DT
ideas/NNS
that/WDT
might/MD
work/VB
well/RB
as/IN
films/NNS
for/IN
theatrical/NN
release/NN
in/IN
the/DT
U.S/NNP
./.
``/``
When/WRB
that/DT
occurs/VBZ
,/,
and/CC
when/WRB
the/DT
time/NN
is/VBZ
right/JJ
,/,
we/PRP
'll/MD
release/VB
the/DT
films/NNS
in/IN
the/DT
U.S./NNP
,/,
''/''
he/PRP
said/VBD
,/,
adding/VBG
that/IN
Turner/NNP
Pictures/NNP
may/MD
develop/VB
such/JJ
movies/NNS
next/IN
year/NN
for/IN
domestic/JJ
release/NN
in/IN
1991/CD
./.
Turner/NNP
has/VBZ
made/VBN
several/JJ
movies/NNS
,/,
docudramas/NNS
and/CC
documentaries/NNS
for/IN
its/PRP$
networks/NNS
in/IN
recent/JJ
years/NNS
,/,
but/CC
the/DT
company/NN
has/VBZ
never/RB
acted/VBN
as/IN
a/DT
full-fledged/JJ
movie/NN
studio/NN
and/CC
released/VBN
its/PRP$
own/JJ
pictures/NNS
to/TO
theaters/NNS
./.
Mr./NNP
Hogan/NNP
said/VBD
``/``
The/DT
Secret/JJ
Life/NN
of/IN
Ian/NNP
Fleming/NNP
''/''
and/CC
``/``
Treasure/NNP
Island/NNP
''/''
cost/VBD
more/JJR
than/IN
$/$
6/CD
million/CD
each/DT
to/TO
make/VB
,/,
which/WDT
is/VBZ
only/RB
about/RB
one-third/NN
the/DT
cost/NN
of/IN
most/JJS
movies/NNS
made/VBN
for/IN
theatrical/JJ
release/NN
./.
The/DT
Turner/NNP
move/NN
is/VBZ
in/IN
line/NN
with/IN
a/DT
cable-TV/NN
trend/NN
toward/IN
more/RBR
original/JJ
programming/NN
--/:
and/CC
toward/IN
finding/VBG
more/JJR
ways/NNS
to/TO
amortize/VB
the/DT
high/JJ
cost/NN
of/IN
producing/VBG
films/NNS
./.
In/IN
July/NNP
,/,
Viacom/NNP
Inc./NNP
formed/VBD
Viacom/NNP
Pictures/NNP
to/TO
produce/VB
12/CD
low-budget/JJ
movies/NNS
a/DT
year/NN
that/WDT
will/MD
premiere/VB
on/IN
Showtime/NNP
network/NN
and/CC
be/VB
distributed/VBN
later/RB
in/IN
various/JJ
markets/NNS
,/,
including/VBG
foreign/JJ
theaters/NNS
./.
In/IN
a/DT
sign/NN
the/DT
stock/NN
slump/NN
has/VBZ
n't/RB
quieted/VBN
Europe/NNP
's/POS
takeover/NN
fever/NN
,/,
Cie/NNP
./.
Financiere/NNP
de/NNP
Paribas/NNP
said/VBD
it/PRP
intends/VBZ
to/TO
bid/VB
for/IN
one/CD
of/IN
France/NNP
's/POS
other/JJ
large/JJ
financial/JJ
and/CC
industrial/JJ
holding/NN
companies/NNS
,/,
Cie./NNP
de/NNP
Navigation/NNP
Mixte/NNP
./.
Paribas/NNP
said/VBD
that/IN
once/RB
it/PRP
receives/VBZ
the/DT
go-ahead/NN
from/IN
French/JJ
stock/NN
market/NN
authorities/NNS
,/,
it/PRP
will/MD
offer/VB
to/TO
boost/VB
its/PRP$
Navigation/NNP
Mixte/NNP
stake/NN
to/TO
66.7/CD
%/NN
from/IN
the/DT
current/JJ
18.7/CD
%/NN
./.
Its/PRP$
cash-or-shares/JJ
bid/NN
values/VBZ
Navigation/NNP
Mixte/NNP
at/IN
about/RB
22.82/CD
billion/CD
francs/NNS
$/$
3.62/CD
billion/CD
this/DT
one/CD
of/IN
France/NNP
's/POS
largest-ever/JJ
attempted/JJ
takeovers/NNS
./.
The/DT
cost/NN
of/IN
buying/VBG
the/DT
additional/JJ
48/CD
%/NN
stake/NN
would/MD
be/VB
10.95/CD
billion/CD
francs/NNS
$/$
1.74/CD
billion/CD
The/DT
move/NN
would/MD
greatly/RB
boost/VB
Paribas/NNP
's/POS
stake/NN
in/IN
the/DT
insurance/NN
,/,
transport/NN
and/CC
food/NN
businesses/NNS
,/,
where/WRB
Navigation/NNP
Mixte/NNP
is/VBZ
strong/JJ
./.
It/PRP
also/RB
would/MD
make/VB
Paribas/NNP
a/DT
major/JJ
French/JJ
ally/NN
of/IN
West/NNP
Germany/NNP
's/POS
Allianz/NNP
AG/NNP
insurance/NN
group/NN
./.
Allianz/NNP
holds/VBZ
a/DT
50/CD
%/NN
stake/NN
in/IN
Navigation/NNP
Mixte/NNP
's/POS
insurance/NN
interests/NNS
,/,
acquired/VBN
three/CD
weeks/NNS
ago/RB
./.
Those/DT
include/VBP
Rhin/NNP
et/NNP
Moselle/NNP
Vie/NNP
and/CC
Via/NNP
Assurances/NNP
./.
Long/RB
considered/VBN
a/DT
potential/JJ
takeover/NN
target/NN
,/,
Navigation/NNP
Mixte/NNP
had/VBD
hoped/VBN
Allianz/NNP
would/MD
help/VB
protect/VB
it/PRP
from/IN
raiders/NNS
./.
That/DT
idea/NN
may/MD
have/VB
backfired/VBN
./.
Paribas/NNP
is/VBZ
Allianz/NNP
's/POS
main/JJ
French/JJ
bank/NN
,/,
and/CC
the/DT
Munich-based/JJ
group/NN
said/VBD
it/PRP
intends/VBZ
to/TO
stay/VB
neutral/JJ
./.
Navigation/NNP
Mixte/NNP
said/VBD
it/PRP
would/MD
n't/RB
have/VB
any/DT
comment/NN
until/IN
its/PRP$
board/NN
meets/VBZ
Wednesday/NNP
./.
But/CC
Navigation/NNP
Mixte/NNP
is/VBZ
loosely/RB
held/VBN
and/CC
hard/RB
to/TO
defend/VB
./.
``/``
The/DT
defensive/NN
options/NNS
are/VBP
limited/JJ
,/,
''/''
says/VBZ
Philippe/NNP
Braye/NNP
,/,
a/DT
partner/NN
in/IN
portfolio/NN
management/NN
concern/NN
France/NNP
Finance/NNP
Quatre/NNP
./.
``/``
Who/WP
would/MD
bid/VB
against/IN
Paribas/NNP
?/.
''/''
If/IN
the/DT
Paribas/NNP
bid/NN
succeeds/VBZ
,/,
it/PRP
will/MD
be/VB
the/DT
second/JJ
time/NN
in/IN
two/CD
months/NNS
a/DT
big/JJ
French/JJ
investment/NN
banking/NN
group/NN
has/VBZ
snapped/VBN
up/RP
an/DT
insurance/NN
group/NN
./.
Last/JJ
month/NN
,/,
Paribas/NNP
's/POS
archrival/NN
,/,
Cie/NNP
./.
Financiere/NNP
de/NNP
Suez/NNP
,/,
won/VBD
a/DT
battle/NN
for/IN
Groupe/NNP
Victoire/NNP
,/,
France/NNP
's/POS
second-largest/JJ
private-sector/JJ
insurer/NN
,/,
which/WDT
itself/PRP
had/VBD
just/RB
acquired/VBN
West/NNP
Germany/NNP
's/POS
Colonia/NNP
Versicherung/NNP
AG/NNP
./.
That/DT
complex/JJ
bid/NN
was/VBD
billed/VBN
as/IN
France/NNP
's/POS
largest/JJS
takeover/NN
ever/RB
(/(
this/DT
one/CD
is/VBZ
slightly/RB
smaller/JJR
Moreover/RB
,/,
Suez/NNP
had/VBD
just/RB
finished/VBN
winning/VBG
an/DT
even/RB
larger/JJR
battle/NN
last/JJ
year/NN
for/IN
control/NN
of/IN
Societe/NNP
Generale/NNP
de/NNP
Belgique/NNP
./.
Paribas/NNP
officials/NNS
,/,
once/RB
considered/VBN
France/NNP
's/POS
toughest/JJS
bankers/NNS
,/,
felt/VBD
abashed/JJ
at/IN
Suez/NNP
's/POS
success/NN
and/CC
its/PRP$
rapid/JJ
growth/NN
./.
Although/IN
Paribas/NNP
denies/VBZ
it/PRP
,/,
analysts/NNS
say/VBP
the/DT
new/JJ
bid/NN
in/IN
part/NN
simply/RB
reflects/VBZ
the/DT
continuing/JJ
rivalry/NN
between/IN
France/NNP
's/POS
two/CD
largest/JJS
investment/NN
banking/NN
groups/NNS
./.
It/PRP
also/RB
reflects/VBZ
the/DT
broader/JJR
pressure/NN
on/IN
companies/NNS
in/IN
Europe/NNP
to/TO
keep/VB
up/RP
as/IN
the/DT
European/NNP
Community/NNP
prepares/VBZ
to/TO
reduce/VB
internal/JJ
trade/NN
barriers/NNS
by/IN
1992/CD
./.
Although/IN
Paribas/NNP
Chairman/NNP
Michel/NNP
Francois-Poncet/NNP
would/MD
n't/RB
rule/VB
out/RP
eventually/RB
selling/VBG
all/DT
of/IN
Navigation/NNP
Mixte/NNP
's/POS
insurance/NN
operations/NNS
to/TO
Allianz/NNP
,/,
he/PRP
stressed/VBD
the/DT
potential/NN
for/IN
the/DT
two/CD
groups/NNS
instead/RB
to/TO
cooperate/VB
./.
He/PRP
also/RB
told/VBD
reporters/NNS
the/DT
acquisition/NN
would/MD
give/VB
Paribas/NNP
fresh/JJ
diversity/NN
,/,
bringing/VBG
it/PRP
properties/NNS
in/IN
food/NN
and/CC
transport/NN
where/WRB
it/PRP
has/VBZ
been/VBN
weak/JJ
./.
Navigation/NNP
Mixte/NNP
has/VBZ
investments/NNS
in/IN
a/DT
sugar/NN
company/NN
,/,
a/DT
food/NN
and/CC
canning/NN
concern/NN
,/,
a/DT
bakery/NN
and/CC
bus/NN
and/CC
trucking/NN
firms/NNS
,/,
among/IN
others/NNS
./.
And/CC
Navigation/NNP
Mixte/NNP
has/VBZ
a/DT
huge/JJ
hidden/JJ
attraction/NN
./.
Payment/NN
by/IN
Allianz/NNP
for/IN
the/DT
insurance/NN
interests/VBZ
it/PRP
has/VBZ
just/RB
bought/VBN
will/MD
help/VB
swell/VB
the/DT
French/JJ
concern/NN
's/POS
treasury/NN
to/TO
an/DT
estimated/JJ
11/CD
billion/CD
francs/NNS
./.
Paribas/NNP
said/VBD
it/PRP
will/MD
bid/VB
1,850/CD
francs/NNS
a/DT
share/NN
for/IN
Navigation/NNP
Mixte/NNP
shares/NNS
that/WDT
qualify/VBP
for/IN
a/DT
full/JJ
yearly/JJ
dividend/NN
,/,
and/CC
1,800/CD
francs/NNS
for/IN
those/DT
created/VBN
July/NNP
1/CD
,/,
which/WDT
are/VBP
eligible/JJ
for/IN
partial/JJ
dividends/NNS
./.
Alternatively/RB
,/,
it/PRP
said/VBD
it/PRP
would/MD
offer/VB
three/CD
Paribas/NNP
shares/NNS
,/,
themselves/PRP
eligible/JJ
for/IN
dividends/NNS
as/IN
of/IN
next/JJ
Jan./NNP
1/CD
,/,
for/IN
one/CD
Navigation/NNP
Mixte/NNP
share/NN
./.
Paribas/NNP
shares/NNS
closed/VBD
down/RB
30/CD
francs/NNS
at/IN
610/CD
francs/NNS
,/,
and/CC
Navigation/NNP
Mixte/NNP
shares/NNS
were/VBD
suspended/VBN
at/IN
1,800/CD
francs/NNS
pending/VBG
the/DT
outcome/NN
of/IN
the/DT
bid/NN
./.
Paribas/NNP
said/VBD
it/PRP
would/MD
publish/VB
details/NNS
of/IN
its/PRP$
bid/NN
once/IN
authorities/NNS
clear/VBP
it/PRP
./.
This/DT
is/VBZ
one/CD
of/IN
the/DT
first/JJ
bids/NNS
under/IN
new/JJ
takeover/NN
rules/NNS
aimed/VBN
at/IN
encouraging/VBG
open/JJ
bids/NNS
instead/RB
of/IN
gradual/JJ
accumulation/NN
of/IN
large/JJ
stakes/NNS
./.
Some/DT
financial/JJ
sources/NNS
said/VBD
privately/RB
that/IN
Paribas/NNP
blundered/VBD
in/IN
failing/VBG
to/TO
move/VB
sooner/RBR
for/IN
the/DT
insurance/NN
and/CC
industrial/JJ
group/NN
,/,
bidding/VBG
only/RB
after/IN
speculation/NN
had/VBD
pushed/VBN
up/RP
the/DT
price/NN
./.
Mr./NNP
Francois-Poncet/NNP
responded/VBD
that/IN
his/PRP$
group/NN
initially/RB
intended/VBD
to/TO
take/VB
only/RB
a/DT
minority/NN
stake/NN
,/,
striking/VBG
an/DT
alliance/NN
with/IN
current/JJ
management/NN
./.
When/WRB
notoriously/RB
independent-minded/JJ
Navigation/NNP
Mixte/NNP
Chairman/NNP
Marc/NNP
Fournier/NNP
rejected/VBD
Paribas/NNP
's/POS
offer/NN
and/CC
began/VBD
buying/VBG
Paribas/NNP
shares/NNS
in/IN
retaliation/NN
,/,
Mr./NNP
Francois-Poncet/NNP
said/VBD
,/,
he/PRP
felt/VBD
obliged/JJ
to/TO
bid/VB
for/IN
control/NN
./.
He/PRP
told/VBD
reporters/NNS
he/PRP
had/VBD
information/NN
that/IN
Mr./NNP
Fournier/NNP
was/VBD
preparing/VBG
to/TO
buy/VB
as/RB
much/JJ
as/IN
20/CD
%/NN
of/IN
Paribas/NNP
,/,
up/RB
from/IN
less/JJR
than/IN
5/CD
%/NN
currently/RB
./.
A/DT
bid/NN
against/IN
Paribas/NNP
could/MD
n't/RB
be/VB
ruled/VBN
out/RP
./.
France/NNP
's/POS
second-largest/JJ
government-owned/JJ
insurance/NN
company/NN
,/,
Assurances/NNP
Generales/NNP
de/NNP
France/NNP
,/,
has/VBZ
been/VBN
building/VBG
its/PRP$
own/JJ
Navigation/NNP
Mixte/NNP
stake/NN
,/,
currently/RB
thought/VBN
to/TO
be/VB
between/IN
8/CD
%/NN
and/CC
10/CD
%/NN
./.
Analysts/NNS
said/VBD
they/PRP
do/VBP
n't/RB
think/VB
it/PRP
is/VBZ
contemplating/VBG
a/DT
takeover/NN
,/,
however/RB
,/,
and/CC
its/PRP$
officials/NNS
could/MD
n't/RB
be/VB
reached/VBN
./.
Crude/JJ
oil/NN
futures/NNS
prices/NNS
fell/VBD
further/RBR
as/IN
analysts/NNS
and/CC
traders/NNS
said/VBD
OPEC/NNP
oil/NN
producers/NNS
are/VBP
n't/RB
putting/VBG
the/DT
brakes/NNS
on/IN
output/NN
ahead/RB
of/IN
the/DT
traditionally/RB
weak/JJ
first/JJ
quarter/NN
./.
In/IN
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Mercantile/NNP
Exchange/NNP
,/,
the/DT
U.S./NNP
benchmark/JJ
West/NNP
Texas/NNP
Intermediate/NNP
crude/NN
fell/VBD
39/CD
cents/NNS
a/DT
barrel/NN
to/TO
$/$
19.76/CD
for/IN
December/NNP
delivery/NN
./.
Petroleum/NN
products/NNS
prices/NNS
also/RB
declined/VBD
./.
Analysts/NNS
pointed/VBD
to/TO
reports/NNS
that/IN
the/DT
Organization/NNP
of/IN
Petroleum/NNP
Exporting/NNP
Countries/NNP
is/VBZ
producing/VBG
substantially/RB
more/JJR
than/IN
its/PRP$
official/JJ
limit/NN
of/IN
20.5/CD
million/CD
barrels/NNS
a/DT
day/NN
,/,
with/IN
some/DT
accounts/NNS
putting/VBG
the/DT
13-nation/JJ
group/NN
's/POS
output/NN
as/RB
high/JJ
as/IN
23/CD
million/CD
barrels/NNS
a/DT
day/NN
./.
That/DT
level/NN
of/IN
production/NN
did/VBD
n't/RB
take/VB
its/PRP$
toll/NN
on/IN
futures/NNS
prices/NNS
for/IN
the/DT
fourth/JJ
quarter/NN
,/,
when/WRB
demand/NN
is/VBZ
traditionally/RB
strong/JJ
./.
But/CC
because/IN
first-quarter/JJ
demand/NN
is/VBZ
normally/RB
the/DT
weakest/JJS
of/IN
the/DT
year/NN
,/,
several/JJ
market/NN
participants/NNS
say/VBP
,/,
OPEC/NNP
production/NN
will/MD
have/VB
to/TO
decline/VB
to/TO
keep/VB
prices/NNS
from/IN
eroding/VBG
further/RBR
./.
The/DT
group/NN
plans/VBZ
to/TO
meet/VB
in/IN
a/DT
month/NN
to/TO
discuss/VB
production/NN
strategy/NN
for/IN
early/JJ
1990/CD
./.
With/IN
prices/NNS
already/RB
headed/VBD
lower/RBR
,/,
news/NN
of/IN
a/DT
series/NN
of/IN
explosions/NNS
at/IN
a/DT
major/JJ
Phillips/NNP
Petroleum/NNP
Co./NNP
chemical/NN
facility/NN
on/IN
the/DT
Houston/NNP
Ship/NNP
Channel/NNP
also/RB
was/VBD
bearish/JJ
for/IN
prices/NNS
./.
Even/RB
though/IN
such/JJ
facilities/NNS
use/VBP
a/DT
relatively/RB
small/JJ
amount/NN
of/IN
crude/NN
,/,
analysts/NNS
say/VBP
,/,
now/RB
the/DT
facility/NN
wo/MD
n't/RB
need/VB
any/DT
,/,
at/IN
a/DT
time/NN
of/IN
already/RB
high/JJ
availability/NN
./.
The/DT
Phillips/NNP
plant/NN
makes/VBZ
polyethylene/NN
,/,
polypropylene/NN
and/CC
other/JJ
plastic/NN
products/NNS
./.
A/DT
company/NN
official/NN
said/VBD
the/DT
explosions/NNS
began/VBD
when/WRB
a/DT
seal/NN
blew/VBD
out/RP
./.
Dozens/NNS
of/IN
workers/NNS
were/VBD
injured/VBN
,/,
authorities/NNS
said/VBD
./.
There/EX
was/VBD
no/DT
immediate/JJ
estimate/NN
of/IN
damage/NN
from/IN
the/DT
company/NN
./.
Some/DT
petroleum/NN
futures/NNS
traders/NNS
say/VBP
technical/JJ
considerations/NNS
now/RB
will/MD
help/VB
to/TO
put/VB
downward/JJ
pressure/NN
on/IN
futures/NNS
prices/NNS
./.
For/IN
instance/NN
,/,
one/CD
trader/NN
said/VBD
that/IN
prices/NNS
inevitably/RB
will/MD
go/VB
lower/RBR
now/RB
that/IN
they/PRP
've/VBP
fallen/VBN
below/IN
$/$
20/CD
a/DT
barrel/NN
./.
``/``
Our/PRP$
technician/NN
is/VBZ
a/DT
little/JJ
bearish/JJ
now/RB
that/IN
we/PRP
've/VBP
taken/VBN
out/RP
$/$
20/CD
,/,
''/''
he/PRP
said/VBD
./.
In/IN
other/JJ
commodity/NN
markets/NNS
yesterday/NN
:/:
COPPER/NN
:/:
The/DT
selling/NN
that/WDT
started/VBD
on/IN
Friday/NNP
continued/VBD
yesterday/NN
./.
The/DT
December/NNP
contract/NN
fell/VBD
3.85/CD
cents/NNS
a/DT
pound/NN
to/TO
$/$
1.1960/CD
./.
London/NNP
Metal/NNP
Exchange/NNP
warehouse/NN
stocks/NNS
were/VBD
down/RB
only/RB
4,800/CD
metric/JJ
tons/NNS
for/IN
the/DT
week/NN
to/TO
84,500/CD
tons/NNS
;/:
expectations/NNS
late/RB
last/JJ
week/NN
were/VBD
a/DT
drop/NN
of/IN
10,000/CD
to/TO
15,000/CD
tons/NNS
./.
The/DT
New/NNP
York/NNP
market/NN
made/VBD
its/PRP$
high/NN
for/IN
the/DT
day/NN
on/IN
the/DT
opening/NN
and/CC
when/WRB
it/PRP
dropped/VBD
below/IN
the/DT
$/$
1.23-a-pound/JJ
level/NN
,/,
selling/NN
picked/VBN
up/RP
as/RB
previous/JJ
buyers/NNS
bailed/VBD
out/IN
of/IN
their/PRP$
positions/NNS
and/CC
aggressive/JJ
short/JJ
sellers/NNS
--/:
anticipating/VBG
further/JJ
declines/NNS
--/:
moved/VBD
in/IN
./.
Fund/NN
selling/NN
also/RB
picked/VBD
up/RP
at/IN
that/DT
point/NN
./.
According/VBG
to/TO
Bernard/NNP
Savaiko/NNP
,/,
senior/JJ
commodity/NN
analyst/NN
at/IN
PaineWebber/NNP
,/,
the/DT
only/JJ
stability/NN
to/TO
the/DT
market/NN
came/VBD
when/WRB
short/JJ
sellers/NNS
periodically/RB
moved/VBD
in/RB
to/TO
cover/VB
their/PRP$
positions/NNS
by/IN
buying/VBG
contracts/NNS
./.
This/DT
activity/NN
produced/VBD
small/JJ
rallies/NNS
,/,
which/WDT
in/IN
turn/NN
attracted/VBD
new/JJ
short/JJ
selling/NN
./.
Mr./NNP
Savaiko/NNP
noted/VBD
that/IN
copper/NN
had/VBD
a/DT
steep/JJ
fall/NN
in/IN
spite/NN
of/IN
a/DT
weak/JJ
dollar/NN
,/,
which/WDT
would/MD
normally/RB
support/VB
the/DT
U.S./NNP
copper/NN
market/NN
./.
Such/JJ
support/NN
usually/RB
comes/VBZ
from/IN
arbitragers/NNS
who/WP
use/VBP
a/DT
strong/JJ
British/JJ
pound/NN
to/TO
buy/VB
copper/NN
in/IN
New/NNP
York/NNP
./.
``/``
The/DT
sell-off/NN
would/MD
probably/RB
have/VB
been/VBN
worse/JJR
if/IN
the/DT
dollar/NN
had/VBD
been/VBN
strong/JJ
,/,
''/''
he/PRP
said/VBD
./.
Copper/NN
has/VBZ
been/VBN
stuck/VBN
in/IN
a/DT
trading/NN
range/NN
of/IN
$/$
1.19/CD
to/TO
$/$
1.34/CD
./.
Mr./NNP
Savaiko/NNP
believes/VBZ
that/IN
if/IN
copper/NN
falls/VBZ
below/IN
the/DT
bottom/NN
of/IN
this/DT
range/NN
the/DT
next/JJ
significant/JJ
support/NN
level/NN
will/MD
be/VB
about/RB
$/$
1.04/CD
./.
PRECIOUS/JJ
METALS/NNS
:/:
Platinum/NN
and/CC
palladium/NN
struggled/VBD
to/TO
maintain/VB
their/PRP$
prices/NNS
all/DT
day/NN
despite/IN
news/NN
stories/NNS
over/IN
the/DT
weekend/NN
that/IN
recent/JJ
cold/JJ
fusion/NN
experiments/NNS
,/,
which/WDT
use/VBP
both/DT
metals/NNS
,/,
showed/VBD
signs/NNS
of/IN
producing/VBG
extra/JJ
heat/NN
./.
January/NNP
platinum/NN
closed/VBD
down/RB
$/$
2.80/CD
an/DT
ounce/NN
at/IN
$/$
486.30/CD
,/,
nearly/RB
$/$
4/CD
above/IN
its/PRP$
low/NN
for/IN
the/DT
day/NN
./.
December/NNP
palladium/NN
was/VBD
off/RB
$/$
1.55/CD
an/DT
ounce/NN
at/IN
$/$
137.20/CD
./.
Platinum/NN
is/VBZ
believed/VBN
to/TO
have/VB
good/JJ
support/NN
around/IN
$/$
480/CD
and/CC
palladium/NN
at/IN
around/IN
$/$
130/CD
./.
Some/DT
traders/NNS
were/VBD
thought/VBN
to/TO
be/VB
waiting/VBG
for/IN
the/DT
auto/NN
sales/NNS
report/NN
,/,
which/WDT
will/MD
be/VB
released/VBN
today/NN
./.
Such/JJ
sales/NNS
are/VBP
watched/VBN
closely/RB
by/IN
platinum/NN
and/CC
palladium/NN
traders/NNS
because/IN
both/DT
metals/NNS
are/VBP
used/VBN
in/IN
automobile/NN
catalytic/JJ
converters/NNS
./.
Mr./NNP
Savaiko/NNP
theorized/VBD
that/IN
the/DT
news/NN
on/IN
cold/JJ
fusion/NN
did/VBD
n't/RB
affect/VB
the/DT
market/NN
yesterday/NN
because/IN
many/JJ
traders/NNS
have/VBP
already/RB
been/VBN
badly/RB
burnt/VBN
by/IN
such/JJ
stories/NNS
./.
He/PRP
said/VBD
the/DT
traders/NNS
are/VBP
demanding/VBG
a/DT
higher/JJR
level/NN
of/IN
proof/NN
before/IN
they/PRP
will/MD
buy/VB
palladium/NN
again/RB
./.
Also/RB
weighing/VBG
on/IN
both/DT
metals/NNS
'/POS
prices/NNS
is/VBZ
the/DT
role/NN
of/IN
the/DT
chief/JJ
supplier/NN
,/,
the/DT
Soviet/NNP
Union/NNP
./.
Many/JJ
analysts/NNS
believe/VBP
that/IN
the/DT
Soviets/NNPS
'/POS
thirst/NN
for/IN
dollars/NNS
this/DT
year/NN
to/TO
buy/VB
grain/NN
and/CC
other/JJ
Western/JJ
commodities/NNS
and/CC
goods/NNS
will/MD
bring/VB
them/PRP
to/TO
the/DT
market/NN
whenever/WRB
prices/NNS
rally/VBP
very/RB
much/RB
./.
GRAINS/NNS
AND/CC
SOYBEANS/NNS
:/:
Prices/NNS
closed/VBD
mixed/JJ
as/IN
contracts/NNS
reacted/VBD
to/TO
largely/RB
offsetting/JJ
bullish/JJ
and/CC
bearish/JJ
news/NN
./.
On/IN
the/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
,/,
soybeans/NNS
for/IN
November/NNP
delivery/NN
closed/VBD
at/IN
$/$
5.63/CD
a/DT
bushel/NN
,/,
down/IN
half/PDT
a/DT
cent/NN
,/,
while/IN
the/DT
December/NNP
wheat/NN
contract/NN
rose/VBD
three-quarters/NNS
of/IN
a/DT
cent/NN
to/TO
$/$
4.0775/CD
a/DT
bushel/NN
./.
Supporting/VBG
prices/NNS
was/VBD
the/DT
announcement/NN
late/RB
Friday/NNP
of/IN
additional/JJ
grain/NN
sales/NNS
to/TO
the/DT
Soviet/NNP
Union/NNP
./.
But/CC
acting/VBG
as/IN
a/DT
drag/NN
on/IN
prices/NNS
was/VBD
the/DT
improved/JJ
harvest/NN
weather/NN
over/IN
the/DT
weekend/NN
and/CC
the/DT
prospect/NN
for/IN
continued/JJ
fair/JJ
weather/NN
this/DT
week/NN
over/IN
much/JJ
of/IN
the/DT
Farm/NNP
Belt/NNP
./.
Strong/JJ
farmer/NN
selling/NN
over/IN
the/DT
weekend/NN
also/RB
weighed/VBD
on/IN
prices/NNS
./.
SUGAR/NN
:/:
World/NN
prices/NNS
tumbled/VBD
,/,
mostly/RB
from/IN
their/PRP$
own/JJ
weight/NN
,/,
according/VBG
to/TO
analysts/NNS
./.
The/DT
March/NNP
contract/NN
ended/VBD
at/IN
13.79/CD
cents/NNS
a/DT
pound/NN
,/,
down/RB
0.37/CD
cent/NN
./.
For/IN
the/DT
past/JJ
week/NN
or/CC
so/RB
,/,
traders/NNS
have/VBP
been/VBN
expecting/VBG
India/NNP
to/TO
buy/VB
between/IN
150,000/CD
and/CC
200,000/CD
tons/NNS
of/IN
refined/JJ
sugar/NN
,/,
and/CC
there/EX
have/VBP
been/VBN
expectations/NNS
of/IN
a/DT
major/JJ
purchase/NN
by/IN
Japan/NNP
./.
But/CC
with/IN
no/DT
reports/NNS
of/IN
either/DT
country/NN
actually/RB
entering/VBG
the/DT
market/NN
,/,
analysts/NNS
said/VBD
,/,
futures/NNS
prices/NNS
became/VBD
vulnerable/JJ
./.
Developing/VBG
countries/NNS
such/JJ
as/IN
India/NNP
,/,
some/DT
analysts/NNS
said/VBD
,/,
seem/VB
to/TO
have/VB
made/VBN
it/PRP
a/DT
point/NN
to/TO
stay/VB
away/RB
whenever/WRB
sugar/NN
reached/VBD
the/DT
top/NN
of/IN
its/PRP$
trading/JJ
range/NN
,/,
around/IN
14.75/CD
cents/NNS
,/,
and/CC
wait/VB
for/IN
prices/NNS
to/TO
return/VB
to/TO
the/DT
bottom/NN
of/IN
the/DT
range/NN
,/,
around/IN
13.50/CD
cents/NNS
./.
But/CC
Erik/NNP
Dunlaevy/NNP
,/,
a/DT
sugar/NN
analyst/NN
with/IN
Balfour/NNP
Maclaine/NNP
International/NNP
Ltd./NNP
,/,
said/VBD
the/DT
explanation/NN
for/IN
the/DT
latest/JJS
drop/NN
in/IN
sugar/NN
prices/NNS
is/VBZ
much/RB
simpler/JJR
:/:
Speculators/NNS
,/,
he/PRP
said/VBD
,/,
``/``
got/VBD
too/RB
long/JJ
too/RB
soon/RB
and/CC
ran/VBD
into/IN
resistance/NN
around/IN
the/DT
old/JJ
contract/NN
highs/NNS
./.
''/''
A/DT
PaineWebber/NNP
analyst/NN
said/VBD
that/IN
in/IN
light/NN
of/IN
a/DT
new/JJ
estimate/NN
of/IN
a/DT
production/NN
increase/NN
of/IN
four/CD
million/CD
metric/JJ
tons/NNS
and/CC
only/RB
a/DT
modest/JJ
increase/NN
in/IN
consumption/NN
,/,
sugar/NN
is/VBZ
n't/RB
likely/JJ
to/TO
rise/VB
above/IN
the/DT
top/NN
of/IN
its/PRP$
trading/NN
range/NN
without/IN
a/DT
crop/NN
problem/NN
in/IN
a/DT
major/JJ
producing/JJ
country/NN
./.
COCOA/NN
:/:
Futures/NNS
rallied/VBD
modestly/RB
./.
The/DT
December/NNP
contract/NN
rose/VBD
$/$
33/CD
a/DT
metric/JJ
ton/NN
to/TO
$/$
1,027/CD
,/,
near/IN
its/PRP$
high/NN
for/IN
the/DT
day/NN
./.
Gill/NNP
&/CC
Duffus/NNP
Ltd./NNP
,/,
a/DT
British/JJ
cocoa-trading/JJ
house/NN
,/,
estimated/VBD
that/IN
the/DT
1989-90/CD
world/NN
cocoa/NN
surplus/NN
would/MD
be/VB
231,000/CD
tons/NNS
,/,
down/RB
from/IN
314,000/CD
tons/NNS
for/IN
the/DT
previous/JJ
year/NN
./.
Market/NN
technicians/NNS
were/VBD
encouraged/VBN
by/IN
the/DT
price/NN
patterns/NNS
,/,
which/WDT
in/IN
the/DT
past/NN
have/VBP
preceded/VBN
sharp/JJ
rallies/NNS
./.
Recent/JJ
prices/NNS
for/IN
cocoa/NN
have/VBP
been/VBN
near/IN
levels/NNS
last/RB
seen/VBN
in/IN
the/DT
mid-1970s/NNS
./.
At/IN
such/JJ
prices/NNS
,/,
according/VBG
to/TO
Mr./NNP
Savaiko/NNP
,/,
bargain/NN
hunting/NN
and/CC
short-covering/NN
--/:
buying/NN
back/RP
of/IN
contracts/NNS
previously/RB
sold/VBN
--/:
by/IN
speculators/NNS
is/VBZ
n't/RB
uncommon/JJ
./.
But/CC
Mr./NNP
Savaiko/NNP
expects/VBZ
stepped-up/JJ
producer/NN
selling/NN
at/IN
around/IN
the/DT
$/$
1,040/CD
to/TO
$/$
1,050/CD
level/NN
./.
He/PRP
also/RB
noted/VBD
that/IN
a/DT
strong/JJ
sterling/JJ
market/NN
yesterday/NN
might/MD
have/VB
helped/VBD
cocoa/NN
in/IN
New/NNP
York/NNP
as/IN
arbitragers/NNS
took/VBD
advantage/NN
of/IN
the/DT
currency/NN
move/NN
./.
Sandra/NNP
Kaul/NNP
,/,
research/NN
analyst/NN
at/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
,/,
said/VBD
the/DT
market/NN
pushed/VBD
higher/JJR
mainly/RB
in/IN
anticipation/NN
of/IN
a/DT
late/JJ
harvest/NN
in/IN
the/DT
Ivory/NNP
Coast/NNP
,/,
a/DT
major/JJ
cocoa/NN
producer/NN
./.
Rockwell/NNP
International/NNP
Corp./NNP
bought/VBD
out/RP
Ikegai/NNP
Corp./NNP
's/POS
interest/NN
in/IN
Ikegai-Goss/NNP
,/,
a/DT
joint/JJ
venture/NN
of/IN
the/DT
two/CD
companies/NNS
based/VBN
in/IN
Tokyo/NNP
./.
The/DT
price/NN
was/VBD
3.6/CD
billion/CD
yen/NN
$/$
25/CD
million/CD
The/DT
agreement/NN
provides/VBZ
that/IN
Ikegai/NNP
Corp./NNP
will/MD
remain/VB
a/DT
supplier/NN
to/TO
Ikegai-Goss/NNP
,/,
which/WDT
makes/VBZ
printing/NN
presses/NNS
for/IN
the/DT
newspaper/NN
industry/NN
./.
The/DT
purchase/NN
was/VBD
made/VBN
by/IN
Rockwell/NNP
Graphic/NNP
Systems/NNP
,/,
a/DT
Chicago/NNP
subsidiary/NN
of/IN
the/DT
El/NNP
Segundo/NNP
,/,
Calif./NNP
,/,
concern/NN
./.
Ikegai-Goss/NNP
,/,
which/WDT
has/VBZ
about/RB
200/CD
employees/NNS
,/,
is/VBZ
among/IN
the/DT
industry/NN
leaders/NNS
in/IN
keyless/JJ
inking/NN
technology/NN
,/,
which/WDT
reduces/VBZ
time/NN
and/CC
materials/NNS
waste/NN
when/WRB
preparing/VBG
a/DT
press/NN
for/IN
printing/VBG|NN
./.
The/DT
bond/NN
market/NN
,/,
which/WDT
sometimes/RB
thrives/VBZ
on/IN
bad/JJ
news/NN
,/,
cheered/VBD
yesterday/NN
's/POS
stock/NN
market/NN
sell-off/NNS
and/CC
perceptions/NNS
that/IN
the/DT
economy/NN
is/VBZ
growing/VBG
weaker/JJR
./.
Early/RB
in/IN
the/DT
day/NN
,/,
bonds/NNS
rose/VBD
modestly/RB
on/IN
economists/NNS
'/POS
forecasts/NNS
that/IN
this/DT
week/NN
's/POS
slate/NN
of/IN
economic/JJ
data/NNS
will/MD
portray/VB
an/DT
economy/NN
headed/VBN
for/IN
trouble/NN
./.
Such/JJ
news/NN
is/VBZ
good/JJ
for/IN
bonds/NNS
because/IN
economic/JJ
weakness/NN
sometimes/RB
causes/VBZ
the/DT
Federal/NNP
Reserve/NNP
to/TO
lower/VB
interest/NN
rates/NNS
in/IN
an/DT
effort/NN
to/TO
stimulate/VB
the/DT
economy/NN
and/CC
stave/VB
off/IN
a/DT
recession/NN
./.
For/IN
example/NN
,/,
today/NN
the/DT
Department/NNP
of/IN
Commerce/NNP
is/VBZ
scheduled/VBN
to/TO
release/VB
the/DT
September/NNP
durable/JJ
goods/NNS
report/NN
./.
The/DT
consensus/NN
forecast/NN
of/IN
14/CD
economists/NNS
surveyed/VBN
by/IN
Dow/NNP
Jones/NNP
Capital/NNP
Markets/NNP
Report/NNP
is/VBZ
for/IN
a/DT
1.2/CD
%/NN
drop/NN
in/IN
September/NNP
orders/NNS
./.
That/DT
would/MD
follow/VB
a/DT
3.9/CD
%/NN
advance/NN
in/IN
August/NNP
./.
Bonds/NNS
received/VBD
a/DT
bigger/JJR
boost/NN
later/RB
in/IN
the/DT
day/NN
when/WRB
stock/NN
prices/NNS
moved/VBD
broadly/RB
lower/JJR
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
fell/VBD
26.23/CD
points/NNS
to/TO
2662.91/CD
./.
``/``
Bond/NN
investors/NNS
have/VBP
been/VBN
watching/VBG
stocks/NNS
closely/RB
,/,
''/''
said/VBD
Joel/NNP
Marver/NNP
,/,
chief/JJ
fixed-income/NN
analyst/NN
at/IN
Technical/NNP
Data/NNP
Global/NNP
Markets/NNP
Group/NNP
./.
``/``
When/WRB
you/PRP
get/VBP
a/DT
big/JJ
sell-off/NN
in/IN
equities/NNS
,/,
money/NN
starts/VBZ
to/TO
shift/VB
into/IN
bonds/NNS
,/,
''/''
which/WDT
are/VBP
considered/VBN
safer/JJR
,/,
he/PRP
said/VBD
./.
The/DT
Treasury/NNP
's/POS
benchmark/JJ
30-year/JJ
bond/NN
ended/VBN
about/RB
1\/2/CD
point/NN
higher/JJR
,/,
or/CC
up/RB
about/RB
$/$
5/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
,/,
while/IN
the/DT
yield/NN
slid/VBD
to/TO
7.93/CD
%/NN
from/IN
7.98/CD
%/NN
Friday/NNP
./.
Municipals/NNS
ended/VBD
mixed/JJ
,/,
while/IN
mortgage-backed/JJ
and/CC
investment-grade/JJ
corporate/JJ
bonds/NNS
rose/VBD
./.
Prices/NNS
of/IN
high-yield/JJ
,/,
high-risk/JJ
corporate/JJ
securities/NNS
ended/VBD
unchanged/JJ
./.
In/IN
more/JJR
evidence/NN
of/IN
the/DT
growing/VBG
division/NN
between/IN
``/``
good/JJ
''/''
and/CC
``/``
bad/JJ
''/''
junk/NN
bonds/NNS
,/,
a/DT
$/$
150/CD
million/CD
issue/NN
by/IN
Imo/NNP
Industries/NNP
Inc./NNP
was/VBD
snapped/VBN
up/RP
by/IN
investors/NNS
while/IN
underwriters/NNS
for/IN
Beatrice/NNP
Co./NNP
's/POS
$/$
350/CD
million/CD
issue/NN
are/VBP
considering/VBG
restructuring/VBG
the/DT
deal/NN
to/TO
attract/VB
buyers/NNS
./.
In/IN
the/DT
Treasury/NNP
market/NN
,/,
analysts/NNS
expect/VBP
bond/NN
prices/NNS
to/TO
trade/VB
in/IN
narrow/JJ
ranges/NNS
this/DT
week/NN
as/IN
the/DT
market/NN
takes/VBZ
in/IN
positive/JJ
and/CC
negative/JJ
news/NN
./.
``/``
On/IN
the/DT
negative/JJ
side/NN
,/,
the/DT
market/NN
will/MD
be/VB
affected/VBN
by/IN
constant/JJ
supply/NN
in/IN
all/DT
sectors/NNS
of/IN
the/DT
market/NN
,/,
''/''
said/VBD
William/NNP
M./NNP
Brachfeld/NNP
,/,
economist/NN
at/IN
Daiwa/NNP
Securities/NNP
America/NNP
Inc/NNP
./.
``/``
On/IN
the/DT
other/JJ
hand/NN
,/,
we/PRP
have/VBP
economic/JJ
news/NN
that/WDT
is/VBZ
{/(
expected/VBN
to/TO
be/VB
}/)
relatively/RB
positive/JJ
for/IN
the/DT
bond/NN
market/NN
./.
We/PRP
will/MD
go/VB
back/RB
and/CC
forth/RB
with/IN
a/DT
tilt/NN
toward/IN
slightly/RB
lower/JJR
yields/NNS
,/,
''/''
he/PRP
said/VBD
./.
Today/NN
,/,
the/DT
Treasury/NNP
will/MD
sell/VB
$/$
10/CD
billion/CD
of/IN
new/JJ
two-year/JJ
notes/NNS
./.
Tomorrow/NN
,/,
Resolution/NNP
Funding/NNP
Corp./NNP
,/,
a/DT
division/NN
of/IN
a/DT
new/JJ
government/NN
agency/NN
created/VBN
to/TO
bail/VB
out/RP
the/DT
nation/NN
's/POS
troubled/JJ
thrifts/NNS
,/,
will/MD
hold/VB
its/PRP$
first/JJ
bond/NN
auction/NN
at/IN
which/WDT
it/PRP
will/MD
sell/VB
$/$
4.5/CD
billion/CD
of/IN
30-year/JJ
bonds/NNS
./.
So/RB
far/RB
,/,
money/NN
managers/NNS
and/CC
other/JJ
bond/NN
buyers/NNS
have/VBP
n't/RB
shown/VBN
much/JJ
interest/NN
in/IN
the/DT
Refcorp/NNP
bonds/NNS
./.
Analysts/NNS
have/VBP
mixed/JJ
views/NNS
about/IN
the/DT
two-year/JJ
note/NN
auction/NN
./.
While/IN
some/DT
say/VBP
the/DT
auction/NN
should/MD
proceed/VB
smoothly/RB
,/,
others/NNS
contend/VBP
that/IN
yesterday/NN
's/POS
sale/NN
of/IN
$/$
2.58/CD
billion/CD
of/IN
asset-backed/JJ
securities/NNS
by/IN
Ford/NNP
Motor/NNP
Credit/NNP
Corp./NNP
may/MD
have/VB
siphoned/VBN
some/DT
potential/JJ
institutional/JJ
buyers/NNS
from/IN
the/DT
government/NN
's/POS
note/NN
sale/NN
./.
The/DT
division/NN
of/IN
auto/NN
maker/NN
Ford/NNP
Motor/NNP
Co./NNP
made/VBD
its/PRP$
debut/NN
in/IN
the/DT
asset-backed/JJ
securities/NNS
market/NN
with/IN
the/DT
second-largest/JJ
issue/NN
in/IN
the/DT
market/NN
's/POS
four-year/JJ
history/NN
./.
The/DT
company/NN
offered/VBD
securities/NNS
backed/VBN
by/IN
automobile/NN
loans/NNS
through/IN
an/DT
underwriting/NN
group/NN
headed/VBN
by/IN
First/NNP
Boston/NNP
Corp/NNP
./.
The/DT
issue/NN
yields/VBZ
8.90/CD
%/NN
and/CC
carries/VBZ
a/DT
guarantee/NN
covering/VBG
9/CD
%/NN
of/IN
the/DT
deal/NN
from/IN
the/DT
company/NN
./.
First/NNP
Boston/NNP
sweetened/VBD
the/DT
terms/NNS
from/IN
the/DT
original/JJ
yield/NN
estimate/NN
in/IN
an/DT
apparent/JJ
effort/NN
to/TO
place/VB
the/DT
huge/JJ
offering/NN
./.
The/DT
issue/NN
was/VBD
offered/VBN
at/IN
a/DT
yield/NN
nearly/RB
one/CD
percentage/NN
point/NN
above/IN
the/DT
yield/NN
on/IN
two-year/JJ
Treasurys/NNPS
./.
The/DT
only/JJ
asset-backed/JJ
deal/NN
larger/JJR
than/IN
Ford/NNP
's/POS
was/VBD
a/DT
$/$
4/CD
billion/CD
offering/NN
by/IN
General/NNP
Motors/NNP
Acceptance/NNP
Corp./NNP
in/IN
1986/CD
./.
Treasury/NNP
Securities/NNS
Treasury/NNP
bonds/NNS
were/VBD
1\/8/CD
to/TO
1\/2/CD
point/NN
higher/JJR
yesterday/NN
in/IN
light/JJ
trading/NN
./.
The/DT
benchmark/JJ
30-year/JJ
bond/NN
ended/VBD
at/IN
a/DT
price/NN
of/IN
102/CD
3\/32/CD
,/,
compared/VBN
with/IN
101/CD
17\/32/CD
Friday/NNP
./.
The/DT
latest/JJS
10-year/JJ
notes/NNS
were/VBD
quoted/VBN
late/RB
at/IN
100/CD
17\/32/CD
to/TO
yield/VB
7.90/CD
%/NN
,/,
compared/VBN
with/IN
100/CD
3\/32/CD
to/TO
yield/VB
7.97/CD
%/NN
./.
The/DT
latest/JJS
two-year/JJ
notes/NNS
were/VBD
quoted/VBN
late/RB
at/IN
100/CD
28\/32/CD
to/TO
yield/VB
7.84/CD
%/NN
./.
Short-term/JJ
rates/NNS
rose/VBD
yesterday/NN
at/IN
the/DT
government/NN
's/POS
weekly/JJ
Treasury/NNP
bill/NN
auction/NN
,/,
compared/VBN
with/IN
the/DT
previous/JJ
bill/NN
sale/NN
./.
The/DT
Treasury/NNP
sold/VBD
$/$
7.81/CD
billion/CD
of/IN
three-month/JJ
bills/NNS
with/IN
an/DT
average/JJ
discount/JJ
rate/NN
of/IN
7.52/CD
%/NN
,/,
the/DT
highest/JJS
since/IN
the/DT
average/NN
of/IN
7.63/CD
%/NN
at/IN
the/DT
auction/NN
on/IN
Oct./NNP
10/CD
./.
The/DT
$/$
7.81/CD
billion/CD
of/IN
six-month/JJ
Treasury/NNP
bills/NNS
were/VBD
sold/VBN
with/IN
an/DT
average/JJ
discount/JJ
rate/NN
of/IN
7.50/CD
%/NN
,/,
the/DT
highest/JJS
since/IN
the/DT
average/NN
of/IN
7.60/CD
%/NN
at/IN
the/DT
Oct./NNP
10/CD
auction/NN
./.
The/DT
rates/NNS
were/VBD
up/RB
from/IN
last/JJ
week/NN
's/POS
auction/NN
,/,
when/WRB
they/PRP
were/VBD
7.37/CD
%/NN
and/CC
7.42/CD
%/NN
,/,
respectively/RB
./.
Here/RB
are/VBP
auction/NN
details/NNS
:/:
Rates/NNS
are/VBP
determined/VBN
by/IN
the/DT
difference/NN
between/IN
the/DT
purchase/NN
price/NN
and/CC
face/NN
value/NN
./.
Thus/RB
,/,
higher/JJR
bidding/NN
narrows/VBZ
the/DT
investor/NN
's/POS
return/NN
while/IN
lower/JJR
bidding/NN
widens/VBZ
it/PRP
./.
The/DT
percentage/NN
rates/NNS
are/VBP
calculated/VBN
on/IN
a/DT
360-day/JJ
year/NN
,/,
while/IN
the/DT
coupon-equivalent/JJ
yield/NN
is/VBZ
based/VBN
on/IN
a/DT
365-day/JJ
year/NN
./.
Both/DT
issues/NNS
are/VBP
dated/VBN
Oct./NNP
26/CD
./.
The/DT
13-week/JJ
bills/NNS
mature/VBP
Jan./NNP
25/CD
,/,
1990/CD
,/,
and/CC
the/DT
26-week/JJ
bills/NNS
mature/VBP
April/NNP
26/CD
,/,
1990/CD
./.
Corporate/JJ
Issues/NNS
Investment-grade/JJ
corporates/NNS
closed/VBD
about/RB
1\/4/CD
point/NN
higher/JJR
in/IN
quiet/JJ
trading/NN
./.
In/IN
the/DT
junk/NN
bond/NN
market/NN
,/,
Imo/NNP
Industries/NNP
'/POS
issue/NN
of/IN
12-year/JJ
debentures/NNS
,/,
considered/VBN
to/TO
be/VB
one/CD
of/IN
the/DT
market/NN
's/POS
high-quality/JJ
credits/NNS
,/,
was/VBD
priced/VBN
at/IN
par/NN
to/TO
yield/VB
12/CD
%/NN
./.
Peter/NNP
Karches/NNP
,/,
managing/NN
director/NN
at/IN
underwriter/NN
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
,/,
said/VBD
the/DT
issue/NN
was/VBD
oversubscribed/JJ
./.
``/``
It/PRP
's/VBZ
a/DT
segmented/JJ
market/NN
,/,
and/CC
if/IN
you/PRP
have/VBP
a/DT
good/JJ
,/,
strong/JJ
credit/NN
,/,
people/NNS
have/VBP
an/DT
appetite/NN
for/IN
it/PRP
,/,
''/''
he/PRP
said/VBD
./.
Morgan/NNP
Stanley/NNP
is/VBZ
expected/VBN
to/TO
price/VB
another/DT
junk/NN
bond/NN
deal/NN
,/,
$/$
350/CD
million/CD
of/IN
senior/JJ
subordinated/JJ
debentures/NNS
by/IN
Continental/NNP
Cablevision/NNP
Inc./NNP
,/,
next/JJ
Tuesday/NNP
./.
In/IN
light/NN
of/IN
the/DT
recent/JJ
skittishness/NN
in/IN
the/DT
high-yield/JJ
market/NN
,/,
junk/NN
bond/NN
analysts/NNS
and/CC
traders/NNS
expect/VBP
other/JJ
high-yield/JJ
deals/VBZ
to/TO
be/VB
sweetened/VBN
or/CC
restructured/VBN
before/IN
they/PRP
are/VBP
offered/VBN
to/TO
investors/NNS
./.
In/IN
the/DT
case/NN
of/IN
Beatrice/NNP
,/,
Salomon/NNP
Brothers/NNP
Inc./NNP
is/VBZ
considering/VBG
restructuring/VBG
the/DT
reset/JJ
mechanism/NN
on/IN
the/DT
$/$
200/CD
million/CD
portion/NN
of/IN
the/DT
offering/NN
./.
Under/IN
the/DT
originally/RB
contemplated/VBN
terms/NNS
of/IN
the/DT
offering/NN
,/,
the/DT
notes/NNS
would/MD
have/VB
been/VBN
reset/VB
annually/RB
at/IN
a/DT
fixed/JJ
spread/NN
above/IN
Treasurys/NNPS
./.
Under/IN
the/DT
new/JJ
plan/NN
being/VBG
considered/VBN
,/,
the/DT
notes/NNS
would/MD
reset/VB
annually/RB
at/IN
a/DT
rate/NN
to/TO
maintain/VB
a/DT
market/NN
value/NN
of/IN
101/CD
./.
Price/NN
talk/NN
calls/VBZ
for/IN
the/DT
reset/JJ
notes/NNS
to/TO
be/VB
priced/VBN
at/IN
a/DT
yield/NN
of/IN
between/IN
13/CD
1\/4/CD
%/NN
and/CC
13/CD
1\/2/CD
%/NN
./.
Mortgage-Backed/JJ
Securities/NNS
Activity/NN
in/IN
derivative/JJ
markets/NNS
was/VBD
strong/JJ
with/IN
four/CD
new/JJ
real/JJ
estate/NN
mortgage/NN
investment/NN
conduits/NNS
announced/VBN
and/CC
talk/NN
of/IN
several/JJ
more/JJR
deals/NNS
in/IN
today/NN
's/POS
session/NN
./.
The/DT
Federal/NNP
National/NNP
Mortgage/NNP
Association/NNP
offered/VBD
$/$
1.2/CD
billion/CD
of/IN
Remic/NNP
securities/NNS
in/IN
three/CD
issues/NNS
,/,
and/CC
the/DT
Federal/NNP
Home/NNP
Loan/NNP
Mortgage/NNP
Corp./NNP
offered/VBD
a/DT
$/$
250/CD
million/CD
Remic/NNP
backed/VBN
by/IN
9/CD
%/NN
15-year/JJ
securities/NNS
./.
Part/NN
of/IN
the/DT
reason/NN
for/IN
the/DT
heavy/JJ
activity/NN
in/IN
derivative/JJ
markets/NNS
is/VBZ
that/IN
underwriters/NNS
are/VBP
repackaging/VBG
mortgage/NN
securities/NNS
being/VBG
sold/VBN
by/IN
thrifts/NNS
./.
Traders/NNS
said/VBD
thrifts/NNS
have/VBP
stepped/VBN
up/RP
their/PRP$
mortgage/NN
securities/NNS
sales/NNS
as/IN
the/DT
bond/NN
market/NN
has/VBZ
risen/VBN
in/IN
the/DT
past/JJ
two/CD
weeks/NNS
./.
In/IN
the/DT
mortgage/NN
pass-through/JJ
sector/NN
,/,
active/JJ
issues/NNS
rose/VBD
but/CC
trailed/VBD
gains/NNS
in/IN
the/DT
Treasury/NNP
market/NN
./.
Government/NNP
National/NNP
Mortgage/NNP
Association/NNP
9/CD
%/NN
securities/NNS
for/IN
November/NNP
delivery/NN
were/VBD
quoted/VBN
late/RB
yesterday/NN
at/IN
98/CD
10\/32/CD
,/,
up/RB
10\/32/CD
;/:
and/CC
Freddie/NNP
Mac/NNP
9/CD
%/NN
securities/NNS
were/VBD
at/IN
97/CD
1\/2/CD
,/,
up/RB
1\/4/CD
./.
The/DT
Ginnie/NNP
Mae/NNP
9/CD
%/NN
issue/NN
was/VBD
yielding/VBG
8.36/CD
%/NN
to/TO
a/DT
12-year/JJ
average/JJ
life/NN
assumption/NN
,/,
as/IN
the/DT
spread/NN
above/IN
the/DT
Treasury/NNP
10-year/JJ
note/NN
widened/VBD
slightly/RB
to/TO
1.46/CD
percentage/NN
points/NNS
./.
Municipals/NNS
A/DT
$/$
575/CD
million/CD
San/NNP
Antonio/NNP
,/,
Texas/NNP
,/,
electric/JJ
and/CC
gas/NN
system/NN
revenue/NN
bond/NN
issue/NN
dominated/VBD
the/DT
new/JJ
issue/NN
sector/NN
./.
The/DT
refunding/JJ
issue/NN
,/,
which/WDT
had/VBD
been/VBN
in/IN
the/DT
wings/NNS
for/IN
two/CD
months/NNS
,/,
was/VBD
one/CD
of/IN
the/DT
chief/JJ
offerings/NNS
overhanging/VBG
the/DT
market/NN
and/CC
limiting/VBG
price/NN
appreciation/NN
./.
But/CC
alleviating/VBG
that/DT
overhang/NN
failed/VBD
to/TO
stimulate/VB
much/JJ
activity/NN
in/IN
the/DT
secondary/JJ
market/NN
,/,
where/WRB
prices/NNS
were/VBD
off/RB
1\/8/CD
to/TO
up/RB
3\/8/CD
point/NN
./.
An/DT
official/NN
with/IN
lead/JJ
underwriter/NN
First/NNP
Boston/NNP
said/VBD
orders/NNS
for/IN
the/DT
San/NNP
Antonio/NNP
bonds/NNS
were/VBD
``/``
on/IN
the/DT
slow/JJ
side/NN
./.
''/''
He/PRP
attributed/VBD
that/DT
to/TO
the/DT
issue/NN
's/POS
aggressive/JJ
pricing/NN
and/CC
large/JJ
size/NN
,/,
as/RB
well/RB
as/IN
the/DT
general/JJ
lethargy/NN
in/IN
the/DT
municipal/JJ
marketplace/NN
./.
In/IN
addition/NN
,/,
he/PRP
noted/VBD
,/,
the/DT
issue/NN
would/MD
normally/RB
be/VB
the/DT
type/NN
purchased/VBN
by/IN
property/NN
and/CC
casualty/NN
insurers/NNS
,/,
but/CC
recent/JJ
disasters/NNS
,/,
such/JJ
as/IN
Hurricane/NNP
Hugo/NNP
and/CC
the/DT
Northern/NNP
California/NNP
earthquake/NN
,/,
have/VBP
stretched/VBN
insurers/NNS
'/POS
resources/NNS
and/CC
damped/VBP
their/PRP$
demand/NN
for/IN
bonds/NNS
./.
A/DT
$/$
137.6/CD
million/CD
Maryland/NNP
Stadium/NNP
Authority/NNP
sports/NNS
facilities/NNS
lease/NN
revenue/NN
bond/NN
issue/NN
appeared/VBD
to/TO
be/VB
off/IN
to/TO
a/DT
good/JJ
start/NN
./.
The/DT
issue/NN
was/VBD
oversubscribed/JJ
and/CC
``/``
doing/VBG
very/RB
well/RB
,/,
''/''
according/VBG
to/TO
an/DT
official/NN
with/IN
lead/JJ
underwriter/NN
Morgan/NNP
Stanley/NNP
./.
Activity/NN
quieted/VBD
in/IN
the/DT
New/NNP
York/NNP
City/NNP
bond/NN
market/NN
,/,
where/WRB
heavy/JJ
investor/NN
selling/NN
last/JJ
week/NN
drove/VBD
yields/NNS
on/IN
the/DT
issuer/NN
's/POS
full/JJ
faith/NN
and/CC
credit/NN
backed/VBN
bonds/NNS
up/RB
as/RB
much/JJ
as/IN
0.50/CD
percentage/NN
point/NN
./.
Foreign/JJ
Bonds/NNS
Japanese/JJ
government/NN
bonds/NNS
ended/VBD
lower/JJR
after/IN
the/DT
dollar/NN
rose/VBD
modestly/RB
against/IN
the/DT
yen/NN
./.
The/DT
turnaround/NN
in/IN
the/DT
dollar/NN
fueled/VBD
bearish/JJ
sentiment/NN
about/IN
Japan/NNP
's/POS
bond/NN
market/NN
./.
The/DT
benchmark/JJ
No./NNP
111/CD
4.6/CD
%/NN
bond/NN
due/JJ
1998/CD
ended/VBN
on/IN
brokers/NNS
'/POS
screens/NNS
at/IN
a/DT
price/NN
of/IN
95.39/CD
,/,
off/RB
0.28/CD
./.
The/DT
yield/NN
rose/VBD
to/TO
5.38/CD
%/NN
./.
West/JJ
German/JJ
bond/NN
prices/NNS
ended/VBD
lower/JJR
after/IN
a/DT
day/NN
of/IN
aimless/JJ
trading/NN
./.
The/DT
benchmark/JJ
7/CD
%/NN
bond/NN
due/JJ
October/NNP
1999/CD
fell/VBD
0.20/CD
point/NN
to/TO
99.80/CD
to/TO
yield/VB
7.03/CD
%/NN
,/,
while/IN
the/DT
6/CD
3\/4/CD
%/NN
notes/NNS
due/JJ
July/NNP
1994/CD
fell/VBD
0.10/CD
to/TO
97.65/CD
to/TO
yield/VB
7.34/CD
%/NN
./.
British/JJ
government/NN
bonds/NNS
ended/VBD
slightly/RB
higher/JJR
in/IN
quiet/JJ
trading/NN
as/IN
investors/NNS
looked/VBD
ahead/RB
to/TO
today/NN
's/POS
British/JJ
trade/NN
report/NN
./.
The/DT
benchmark/JJ
11/CD
3\/4/CD
%/NN
Treasury/NNP
bond/NN
due/JJ
2003\/2007/CD
rose/VBD
1\/8/CD
to/TO
111/CD
21\/32/CD
to/TO
yield/VB
10.11/CD
%/NN
,/,
while/IN
the/DT
12/CD
%/NN
issue/NN
of/IN
1995/CD
rose/VBD
3\/32/CD
to/TO
103/CD
23\/32/CD
to/TO
yield/VB
11.01/CD
%/NN
./.
``/``
The/DT
croaker/NN
's/VBZ
done/VBN
gone/VBN
from/IN
the/DT
hook/NN
--/:
damn/UH
!/.
My/PRP$
language/NN
sure/RB
goes/VBZ
to/TO
pot/VB
down/RB
here/RB
on/IN
the/DT
coast/NN
./.
''/''
The/DT
husky/JJ
blond/JJ
guide/NN
with/IN
the/DT
Aggie/NNP
cap/NN
twists/VBZ
his/PRP$
face/NN
in/IN
mock/JJ
fury/NN
./.
``/``
I/PRP
got/VBP
to/TO
get/VB
back/RB
to/TO
school/VB
and/CC
straighten/VB
out/RP
my/PRP$
English/NNP
./.
''/''
He/PRP
has/VBZ
two/CD
more/JJR
years/NNS
at/IN
Texas/NNP
A&M/NNP
./.
Right/RB
now/RB
he/PRP
takes/VBZ
people/NNS
out/IN
to/TO
fish/RB
in/IN
the/DT
bays/NNS
behind/IN
the/DT
barrier/NN
islands/VBZ
that/WDT
curve/NN
for/IN
hundreds/NNS
of/IN
miles/NNS
along/IN
the/DT
eastern/JJ
coast/NN
of/IN
Texas/NNP
,/,
enclosing/VBG
milky/JJ
green/JJ
lagoons/NNS
behind/IN
ridges/NNS
of/IN
sand/NN
and/CC
grassy/JJ
scrub/NN
that/WDT
rim/VBP
the/DT
deep/JJ
blue/NN
of/IN
the/DT
Gulf/NNP
beyond/RB
./.
There/EX
have/VBP
been/VBN
three/CD
days/NNS
of/IN
hot/JJ
,/,
wind-swept/JJ
rain/NN
,/,
and/CC
now/RB
with/IN
the/DT
first/JJ
sun/NN
we/PRP
are/VBP
after/IN
speckled/JJ
seatrout/NN
,/,
which/WDT
with/IN
redfish/NN
provides/VBZ
most/JJS
of/IN
the/DT
game/NN
fishing/NN
hereabouts/RB
./.
The/DT
little/JJ
radio/NN
fizzes/VBZ
as/IN
other/JJ
boats/NNS
want/VBP
to/TO
see/VB
if/IN
we/PRP
have/VBP
found/VBN
any/DT
fish/NN
--/:
spotting/VBG|NN
location/NN
is/VBZ
everything/NN
in/IN
this/DT
sport/NN
./.
Negative/JJ
answers/NNS
crackle/VBP
back/RP
./.
The/DT
fish/NN
often/RB
are/VBP
plentiful/JJ
around/IN
the/DT
pilings/NNS
of/IN
the/DT
old/JJ
gas/NN
wells/NNS
that/WDT
dot/VBP
the/DT
flat/JJ
surface/NN
like/IN
the/DT
remains/NNS
of/IN
sunken/JJ
ships/NNS
./.
We/PRP
go/VBP
from/IN
one/CD
to/TO
the/DT
other/JJ
./.
The/DT
sun/NN
is/VBZ
hot/JJ
now/RB
though/IN
it/PRP
's/VBZ
only/RB
8/CD
in/IN
the/DT
morning/NN
./.
The/DT
great/JJ
silver/JJ
clouds/NNS
on/IN
the/DT
horizon/NN
build/VBP
themselves/PRP
on/IN
the/DT
pale/JJ
water/NN
./.
We/PRP
cruise/VBP
toward/IN
another/DT
set/NN
of/IN
pilings/NNS
./.
The/DT
guide/NN
scoops/VBZ
into/IN
a/DT
pail/NN
and/CC
puts/VBZ
a/DT
frantically/RB
wiggling/VBG
croaker/NN
on/IN
the/DT
hook/NN
./.
Then/RB
he/PRP
casts/VBZ
out/RP
./.
``/``
Just/RB
wait/VB
for/IN
that/DT
tap-tap/NN
,/,
that/DT
thump-thump/NN
./.
It/PRP
comes/VBZ
real/RB
gentle/JJ
before/IN
it/PRP
pulls/VBZ
./.
Do/VBP
n't/RB
forget/VB
,/,
trout/NNS
have/VBP
very/RB
soft/JJ
mouths/NNS
./.
''/''
The/DT
radio/NN
queries/VBZ
again/RB
./.
``/``
Pickin/VBG
'/''
one/CD
or/CC
two/CD
,/,
''/''
says/VBZ
the/DT
guide/NN
,/,
chuckling/VBG
./.
``/``
You/PRP
can/MD
tell/VB
they/PRP
've/VBP
got/VBD
nothin/NN
'/''
./.
''/''
A/DT
pair/NN
of/IN
black/JJ
skimmers/NNS
zig-zag/VBP
past/RB
close/RB
to/TO
the/DT
surface/NN
./.
Soon/RB
we/PRP
have/VBP
our/PRP$
limit/NN
of/IN
the/DT
shimmering/JJ
fish/NN
stippled/JJ
in/IN
rose-gold/NN
and/CC
black/NN
./.
And/CC
we/PRP
are/VBP
the/DT
first/JJ
back/RB
at/IN
the/DT
dock/NN
,/,
where/WRB
the/DT
great/JJ
blue/JJ
herons/NNS
stand/VBP
waiting/VBG
by/IN
the/DT
cleaning/NN
benches/NNS
./.
The/DT
guide/NN
is/VBZ
young/JJ
and/CC
he/PRP
knows/VBZ
this/DT
business/NN
but/CC
he/PRP
wants/VBZ
a/DT
different/JJ
life/NN
after/IN
college/NN
,/,
such/JJ
as/IN
working/VBG
for/IN
IBM/NNP
and/CC
wearing/VBG
a/DT
necktie/NN
./.
This/DT
must/MD
be/VB
the/DT
last/JJ
big/JJ
stretch/NN
of/IN
the/DT
American/JJ
seacoast/NN
that/WDT
is/VBZ
``/``
undeveloped/JJ
./.
''/''
There/EX
are/VBP
a/DT
few/JJ
ramshackle/JJ
fishing/NN
towns/NNS
with/IN
quiet/JJ
atolls/NNS
of/IN
resort/NN
houses/NNS
nearby/RB
./.
People/NNS
are/VBP
not/RB
apt/JJ
to/TO
be/VB
self-conscious/JJ
about/IN
the/DT
place/NN
or/CC
themselves/PRP
./.
Texas/NNP
is/VBZ
big/JJ
and/CC
beautiful/JJ
and/CC
they/PRP
live/VBP
here/RB
,/,
that/DT
's/VBZ
all/DT
./.
Jutting/VBG
out/RB
just/RB
to/TO
the/DT
north/NN
of/IN
us/PRP
is/VBZ
the/DT
Blackjack/NNP
Peninsula/NNP
the/DT
oak/NN
,/,
not/RB
the/DT
game/NN
which/WDT
forms/VBZ
the/DT
core/NN
of/IN
the/DT
Aransas/NNP
Wildlife/NNP
Refuge/NNP
./.
It/PRP
is/VBZ
famous/JJ
as/IN
the/DT
winter/NN
home/NN
of/IN
the/DT
whooping/VBG
crane/NN
,/,
that/IN
symbol/NN
of/IN
the/DT
destruction/NN
of/IN
wild/JJ
America/NNP
./.
Last/JJ
year/NN
a/DT
gunner/NN
shot/VBD
a/DT
whooper/NN
by/IN
mistake/NN
thinking/VBG
that/IN
it/PRP
was/VBD
a/DT
snow/NN
goose/NN
./.
He/PRP
paid/VBD
an/DT
immense/JJ
fine/NN
and/CC
was/VBD
lucky/JJ
,/,
according/VBG
to/TO
a/DT
local/JJ
wag/NN
,/,
to/TO
escape/VB
the/DT
gas/NN
chamber/NN
./.
The/DT
peninsula/NN
comes/VBZ
off/IN
the/DT
vast/JJ
southeastern/JJ
alluvial/JJ
plain/NN
with/IN
fields/NNS
of/IN
rice/NN
and/CC
cotton/NN
and/CC
sorghum/NN
as/RB
far/RB
as/IN
the/DT
eye/NN
can/MD
see/VB
./.
Near/IN
the/DT
coast/NN
there/EX
are/VBP
dense/JJ
coverts/NNS
of/IN
live/JJ
oak/NN
interspersed/VBN
with/IN
marshes/NNS
and/CC
prairies/NNS
./.
Deer/NNS
,/,
wild/JJ
hog/NNS
,/,
armadillos/NNS
and/CC
alligators/NNS
are/VBP
the/DT
glamour/NN
quadrupeds/NNS
and/CC
the/DT
birds/NNS
are/VBP
innumerable/JJ
,/,
especially/RB
the/DT
herons/NNS
and/CC
the/DT
spoonbills/NNS
./.
Above/IN
the/DT
blossoms/NNS
of/IN
lantana/NN
and/CC
scarlet/JJ
pea/NN
the/DT
inky-brown/JJ
and/CC
golden/JJ
palamedes/NN
butterfly/NN
floats/VBZ
on/IN
its/PRP$
lazy/JJ
wingbeat/NN
./.
Inland/RB
a/DT
few/JJ
miles/NNS
from/IN
the/DT
refuge/NN
there/EX
is/VBZ
a/DT
place/NN
called/VBN
Tivoli/NNP
,/,
with/IN
a/DT
white/JJ
church/NN
,/,
a/DT
gas/NN
station/NN
and/CC
a/DT
grocery/NN
,/,
the/DT
houses/NNS
relatively/RB
close/RB
together/RB
for/IN
such/PDT
a/DT
settlement/NN
in/IN
these/DT
parts/NNS
./.
``/``
Tivoli/NNP
Motel/NNP
,/,
''/''
I/PRP
read/VBP
a/DT
sign/NN
in/IN
the/DT
usual/JJ
pronunciation/NN
of/IN
the/DT
name/NN
as/IN
we/PRP
whoosh/VBP
through/RB
./.
``/``
Here/RB
in/IN
south/JJ
Texas/NNP
we/PRP
say/VBP
Tie-vole-ee/NN
,/,
''/''
my/PRP$
host/NN
gently/RB
corrects/VBZ
./.
Mr./NNP
King/NNP
is/VBZ
the/DT
director/NN
of/IN
the/DT
Foreign/NNP
Press/NNP
Center/NNP
in/IN
New/NNP
York/NNP
./.
AEG/NNP
AG/NNP
and/CC
Siemens/NNP
AG/NNP
said/VBD
they/PRP
will/MD
launch/VB
their/PRP$
previously/RB
announced/VBN
joint/JJ
venture/NN
for/IN
power/NN
semiconductors/NNS
in/IN
January/NNP
./.
The/DT
two/CD
West/JJ
German/JJ
electronics/NN
concerns/NNS
said/VBD
they/PRP
have/VBP
set/VBN
up/RP
European/NNP
Power/NNP
Semiconductor/NNP
Co./NNP
to/TO
merge/VB
their/PRP$
activities/NNS
in/IN
the/DT
field/NN
./.
AEG/NNP
and/CC
Siemens/NNP
each/DT
will/MD
hold/VB
a/DT
50/CD
%/NN
stake/NN
in/IN
the/DT
venture/NN
./.
The/DT
joint/JJ
venture/NN
will/MD
have/VB
nominal/JJ
capital/NN
of/IN
50/CD
million/CD
marks/NNS
$/$
26.9/CD
million/CD
700/CD
employees/NNS
./.
It/PRP
will/MD
develop/VB
,/,
produce/VB
and/CC
market/VB
high-performance/JJ
electronic/JJ
parts/NNS
./.
Siemens/NNP
is/VBZ
West/NNP
Germany/NNP
's/POS
largest/JJS
electronics/NN
group/NN
./.
AEG/NNP
is/VBZ
80/CD
%/NN
owned/VBN
by/IN
Daimler-Benz/NNP
AG/NNP
,/,
the/DT
country/NN
's/POS
biggest/JJS
industrial/JJ
concern/NN
./.
Dana/NNP
Corp./NNP
said/VBD
its/PRP$
third-quarter/JJ
net/JJ
income/NN
fell/VBD
27/CD
%/NN
to/TO
$/$
29.6/CD
million/CD
,/,
or/CC
72/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
40.7/CD
million/CD
,/,
or/CC
$/$
1/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
dropped/VBD
4/CD
%/NN
to/TO
$/$
1.12/CD
billion/CD
from/IN
$/$
1.17/CD
billion/CD
./.
The/DT
company/NN
,/,
which/WDT
supplies/VBZ
transmissions/NNS
and/CC
other/JJ
drive-train/NN
parts/NNS
to/TO
auto/NN
makers/NNS
,/,
said/VBD
about/RB
half/PDT
the/DT
earnings/NNS
drop/NN
came/VBD
from/IN
the/DT
``/``
virtual/JJ
collapse/NN
''/''
of/IN
the/DT
Venezuelan/JJ
auto/NN
industry/NN
./.
The/DT
Venezuelan/JJ
currency/NN
plummeted/VBD
this/DT
year/NN
,/,
making/VBG
it/PRP
difficult/JJ
for/IN
auto/NN
makers/NNS
there/RB
to/TO
afford/VB
imported/JJ
parts/NNS
./.
Dana/NNP
also/RB
said/VBD
it/PRP
was/VBD
hurt/VBN
by/IN
slumping/JJ
U.S./NNP
truck/NN
sales/NNS
and/CC
by/IN
a/DT
strike/NN
at/IN
a/DT
parts/NNS
supplier/NN
./.
The/DT
company/NN
,/,
based/VBN
in/IN
Toledo/NNP
,/,
Ohio/NNP
,/,
had/VBD
said/VBD
it/PRP
expected/VBD
reduced/JJ
third-quarter/JJ
profit/NN
./.
Mary/NNP
Anne/NNP
Sudol/NNP
,/,
an/DT
analyst/NN
at/IN
Fitch/NNP
Investors/NNP
in/IN
New/NNP
York/NNP
,/,
said/VBD
automotive/JJ
suppliers/NNS
were/VBD
reporting/VBG
lower/JJR
profit/NN
almost/RB
``/``
across/IN
the/DT
board/NN
./.
''/''
Southwood/NNP
J./NNP
Morcott/NNP
,/,
Dana/NNP
's/POS
president/NN
,/,
said/VBD
the/DT
company/NN
's/POS
decision/NN
to/TO
approve/VB
its/PRP$
normal/JJ
fourth-quarter/JJ
dividend/NN
indicated/VBD
its/PRP$
underlying/JJ
strength/NN
./.
Norimasa/NNP
Furuta/NNP
,/,
president/NN
of/IN
Japan/NNP
's/POS
Mazda/NNP
Motor/NNP
Corp./NNP
,/,
said/VBD
the/DT
Japanese/JJ
car/NN
maker/NN
is/VBZ
planning/VBG
joint/JJ
production/NN
with/IN
Ford/NNP
Motor/NNP
Co./NNP
in/IN
Europe/NNP
ahead/RB
of/IN
the/DT
European/NNP
Community/NNP
's/POS
1992/CD
integration/NN
./.
Mr./NNP
Furuta/NNP
did/VBD
n't/RB
disclose/VB
further/JJ
details/NNS
of/IN
the/DT
arrangement/NN
at/IN
a/DT
news/NN
conference/NN
,/,
but/CC
said/VBD
the/DT
project/NN
would/MD
be/VB
undertaken/VBN
with/IN
Ford/NNP
's/POS
European/JJ
subsidiary/NN
./.
A/DT
Ford/NNP
official/NN
confirmed/VBD
in/IN
Tokyo/NNP
that/IN
the/DT
U.S./NNP
motor/NN
vehicle/NN
maker/NN
is/VBZ
studying/VBG
such/PDT
an/DT
arrangement/NN
./.
At/IN
age/NN
eight/CD
,/,
Josephine/NNP
Baker/NNP
was/VBD
sent/VBN
by/IN
her/PRP$
mother/NN
to/TO
a/DT
white/JJ
woman/NN
's/POS
house/NN
to/TO
do/VB
chores/NNS
in/IN
exchange/NN
for/IN
meals/NNS
and/CC
a/DT
place/NN
to/TO
sleep/VB
--/:
a/DT
place/NN
in/IN
the/DT
basement/NN
with/IN
the/DT
coal/NN
./.
At/IN
age/NN
19/CD
,/,
she/PRP
was/VBD
a/DT
Paris/NNP
sensation/NN
,/,
transformed/VBN
from/IN
unwanted/JJ
child/NN
to/TO
international/JJ
sex/NN
symbol/NN
in/IN
just/RB
over/IN
a/DT
decade/NN
./.
It/PRP
is/VBZ
the/DT
stuff/NN
of/IN
dreams/NNS
,/,
but/CC
also/RB
of/IN
traumas/NNS
./.
Only/RB
the/DT
bravest/JJS
spirits/NNS
survive/VBP
such/JJ
roller/NN
coasters/NNS
./.
And/CC
,/,
for/IN
Ms./NNP
Baker/NNP
,/,
the/DT
ride/NN
was/VBD
far/RB
from/IN
over/RB
./.
Her/PRP$
bare/JJ
breasts/NNS
,/,
her/PRP$
dancing/NN
,/,
her/PRP$
voice/NN
,/,
her/PRP$
beauty/NN
and/CC
,/,
perhaps/RB
most/RBS
famously/RB
,/,
her/PRP$
derriere/NN
,/,
were/VBD
prominent/JJ
attractions/NNS
,/,
but/CC
courage/NN
of/IN
a/DT
rare/JJ
sort/NN
made/VBD
her/PRP$
remarkable/JJ
life/NN
possible/JJ
./.
Bricktop/NNP
,/,
another/DT
American/JJ
black/JJ
woman/NN
who/WP
found/VBD
a/DT
measure/NN
of/IN
fame/NN
in/IN
Paris/NNP
,/,
said/VBD
:/:
``/``
I/PRP
do/VBP
n't/RB
think/VB
I/PRP
've/VBP
ever/RB
known/VBN
anyone/NN
with/IN
a/DT
less/RBR
complicated/JJ
view/NN
of/IN
life/NN
,/,
or/CC
whose/WP$
life/NN
was/VBD
more/RBR
complicated/JJ
than/IN
Josephine/NNP
's/POS
./.
''/''
Men/NNS
were/VBD
a/DT
constant/JJ
complication/NN
./.
Baker/NNP
had/VBD
lots/NNS
of/IN
them/PRP
./.
But/CC
she/PRP
did/VBD
n't/RB
trust/VB
them/PRP
and/CC
did/VBD
n't/RB
reward/VB
trust/NN
./.
As/IN
she/PRP
saw/VBD
one/CD
key/JJ
love/NN
affair/NN
,/,
the/DT
problem/NN
was/VBD
n't/RB
her/PRP$
infidelity/NN
,/,
it/PRP
was/VBD
his/PRP$
jealousy/NN
./.
Her/PRP$
appetite/NN
for/IN
children/NNS
also/RB
was/VBD
large/JJ
./.
She/PRP
adopted/VBD
12/CD
of/IN
assorted/JJ
races/NNS
,/,
naming/VBG
them/PRP
the/DT
Rainbow/NNP
Tribe/NNP
,/,
and/CC
driving/VBG
her/PRP$
husband/NN
first/RB
to/TO
despair/NN
and/CC
then/RB
to/TO
Argentina/NNP
./.
She/PRP
made/VBD
money/NN
,/,
but/CC
spent/VBD
more/JJR
./.
Friends/NNS
pitched/VBD
in/RP
./.
Finally/RB
,/,
Prince/NNP
Rainier/NNP
and/CC
Princess/NNP
Grace/NNP
saved/VBD
her/PRP
with/IN
the/DT
offer/NN
of/IN
a/DT
house/NN
in/IN
Monaco/NNP
./.
Another/DT
lifelong/JJ
complication/NN
,/,
as/IN
Phyllis/NNP
Rose/NNP
makes/VBZ
clear/JJ
in/IN
``/``
Jazz/NN
Cleopatra/NNP
:/:
Josephine/NNP
Baker/NNP
in/IN
Her/PRP$
Time/NN
''/''
(/(
Doubleday/NNP
,/,
321/CD
pages/NNS
,/,
$/$
22.50/CD
racism/NN
./.
Baker/NNP
had/VBD
the/DT
good/JJ
luck/NN
to/TO
arrive/VB
in/IN
1925/CD
Paris/NNP
,/,
where/WRB
blacks/NNS
had/VBD
become/VBN
exotic/JJ
./.
African/JJ
art/NN
was/VBD
in/IN
vogue/NN
and/CC
some/DT
intellectuals/NNS
were/VBD
writing/VBG
breathlessly/RB
of/IN
a/DT
dawning/VBG
age/NN
to/TO
be/VB
inspired/VBN
by/IN
blacks/NNS
./.
To/TO
be/VB
exotic/JJ
was/VBD
to/TO
be/VB
patronized/VBN
as/RB
well/RB
as/IN
prized/VBN
,/,
but/CC
for/IN
the/DT
most/JJS
part/NN
Paris/NNP
was/VBD
a/DT
friendly/JJ
island/NN
in/IN
a/DT
racist/JJ
world/NN
./.
Baker/NNP
had/VBD
bitter/JJ
experience/NN
of/IN
bigotry/NN
from/IN
her/PRP$
St./NNP
Louis/NNP
childhood/NN
and/CC
her/PRP$
days/NNS
in/IN
New/NNP
York/NNP
theater/NN
,/,
where/WRB
she/PRP
was/VBD
judged/VBN
too/RB
dark/JJ
for/IN
an/DT
all-black/JJ
chorus/NN
line/NN
course/NN
for/IN
all-white/JJ
audiences/NNS
Paris/NNP
loved/VBD
her/PRP
at/IN
first/JJ
sight/NN
./.
``/``
She/PRP
just/RB
wiggled/VBD
her/PRP$
fanny/NN
and/CC
all/PDT
the/DT
French/NNP
fell/VBD
in/IN
love/NN
with/IN
her/PRP
,/,
''/''
sniffed/VBD
the/DT
literary/JJ
world/NN
's/POS
Maria/NNP
Jolas/NNP
,/,
not/RB
entirely/RB
inaccurately/RB
./.
``/``
One/PRP
can/MD
hardly/RB
overemphasize/VB
the/DT
importance/NN
of/IN
her/PRP$
rear/JJ
end/NN
,/,
''/''
Ms./NNP
Rose/NNP
writes/VBZ
./.
Ms./NNP
Rose/NNP
,/,
who/WP
teaches/VBZ
literature/NN
at/IN
Wesleyan/NNP
University/NNP
,/,
quickly/RB
proceeds/VBZ
to/TO
overemphasize/VB
,/,
claiming/VBG
that/IN
Baker/NNP
's/POS
dancing/NN
``/``
had/VBD
uncovered/VBN
a/DT
new/JJ
region/NN
for/IN
desire/NN
''/''
and/CC
thereby/RB
ignoring/VBG
centuries/NNS
of/IN
tributes/NNS
to/TO
the/DT
callipygous/NN
./.
``/``
Jazz/NN
Cleopatra/NNP
''/''
contains/VBZ
other/JJ
,/,
more/RBR
important/JJ
,/,
false/JJ
notes/NNS
that/WDT
undermine/VBP
what/WP
is/VBZ
,/,
for/IN
the/DT
most/JJS
part/NN
,/,
a/DT
lively/JJ
account/NN
of/IN
a/DT
life/NN
already/RB
familiar/JJ
from/IN
earlier/JJR
works/NNS
./.
It/PRP
is/VBZ
easy/JJ
to/TO
see/VB
why/WRB
Baker/NNP
,/,
a/DT
free/JJ
spirit/NN
who/WP
broke/VBD
many/JJ
of/IN
the/DT
restraints/NNS
convention/NN
places/VBZ
on/IN
women/NNS
,/,
attracts/VBZ
Ms./NNP
Rose/NNP
,/,
the/DT
author/NN
of/IN
``/``
Parallel/JJ
Lives/NNS
,/,
''/''
a/DT
wonderful/JJ
study/NN
of/IN
Victorian/JJ
marriage/NN
./.
Still/RB
,/,
even/RB
the/DT
title/NN
raises/VBZ
questions/NNS
about/IN
the/DT
author/NN
's/POS
vision/NN
of/IN
her/PRP$
subject/NN
./.
Baker/NNP
's/POS
art/NN
was/VBD
jazz/NN
only/RB
by/IN
the/DT
widest/JJS
stretch/NN
of/IN
the/DT
term/NN
./.
To/TO
find/VB
parallels/NNS
,/,
other/JJ
than/IN
sexual/JJ
appeal/NN
,/,
with/IN
Cleopatra/NNP
,/,
requires/VBZ
an/DT
equal/JJ
stretch/NN
./.
Baker/NNP
was/VBD
68/CD
years/NNS
old/JJ
when/WRB
she/PRP
died/VBD
in/IN
Paris/NNP
,/,
two/CD
days/NNS
after/IN
the/DT
sold-out/JJ
opening/NN
of/IN
her/PRP$
newest/JJS
show/NN
:/:
a/DT
movie-like/JJ
ending/NN
to/TO
what/WP
was/VBD
a/DT
cinematic/JJ
life/NN
./.
In/IN
fact/NN
,/,
Ms./NNP
Baker/NNP
played/VBD
scenes/NNS
in/IN
Casablanca/NNP
that/WDT
could/MD
have/VB
made/VBN
it/PRP
into/IN
``/``
Casablanca/NNP
./.
''/''
During/IN
World/NNP
War/NNP
II/NNP
,/,
her/PRP$
uncomplicated/JJ
view/NN
of/IN
life/NN
led/VBD
her/PRP
to/TO
the/DT
conclusion/NN
that/IN
the/DT
Nazis/NNPS
were/VBD
evil/JJ
and/CC
must/MD
be/VB
resisted/VBN
,/,
a/DT
decision/NN
made/VBN
by/IN
only/RB
about/RB
2/CD
%/NN
of/IN
French/JJ
citizens/NNS
./.
She/PRP
was/VBD
devoted/JJ
to/TO
Charles/NNP
de/IN
Gaulle/NNP
's/POS
cause/NN
,/,
accepting/VBG
great/JJ
financial/JJ
sacrifice/NN
and/CC
considerable/JJ
risk/NN
to/TO
become/VB
first/RB
a/DT
spy/NN
and/CC
then/RB
a/DT
one-woman/JJ
USO/NNP
tour/NN
for/IN
the/DT
forces/NNS
of/IN
Free/NNP
France/NNP
./.
In/IN
Humphrey/NNP
Bogart/NNP
's/POS
nightclub/NN
,/,
Victor/NNP
Laszlo/NNP
leads/VBZ
Free/NNP
French/NNP
sympathizers/NNS
in/IN
``/``
La/NNP
Marseillaise/NNP
''/''
to/TO
drown/VB
out/RP
the/DT
Nazis/NNS
./.
The/DT
night/NN
the/DT
Germans/NNPS
occupied/VBD
all/DT
of/IN
France/NNP
,/,
Baker/NNP
performed/VBD
in/IN
Casablanca/NNP
./.
The/DT
Free/NNP
French/NNP
wore/VBD
black/JJ
arm/NN
bands/NNS
,/,
and/CC
when/WRB
she/PRP
sang/VBD
``/``
J'ai/FW
deux/FW
amours/FW
''/''
they/PRP
wept/VBD
./.
Ms./NNP
Rose/NNP
is/VBZ
best/JJS
on/IN
the/DT
early/JJ
years/NNS
and/CC
World/NNP
War/NNP
II/NNP
./.
In/IN
her/PRP$
introduction/NN
,/,
Ms./NNP
Rose/NNP
writes/VBZ
that/IN
she/PRP
feels/VBZ
she/PRP
has/VBZ
much/JJ
in/IN
common/NN
with/IN
Baker/NNP
,/,
but/CC
as/IN
``/``
Jazz/NN
Cleopatra/NNP
''/''
goes/VBZ
on/RB
,/,
it/PRP
seems/VBZ
more/RBR
rushed/VBN
,/,
as/IN
though/IN
the/DT
author/NN
were/VBD
growing/VBG
less/RBR
interested/JJ
./.
It/PRP
does/VBZ
n't/RB
help/VB
that/IN
sometimes/RB
Ms./NNP
Rose/NNP
's/POS
language/NN
fails/VBZ
to/TO
deliver/VB
the/DT
effect/NN
she/PRP
appears/VBZ
to/TO
want/VB
./.
One/CD
chapter/NN
opens/VBZ
:/:
``/``
World/NNP
War/NNP
II/NNP
was/VBD
not/RB
one/CD
of/IN
France/NNP
's/POS
glorious/JJ
moments/NNS
./.
''/''
Elsewhere/RB
,/,
in/IN
an/DT
attempt/NN
to/TO
explain/VB
without/IN
stating/VBG
it/PRP
plainly/RB
that/IN
Baker/NNP
had/VBD
a/DT
large/JJ
gay/JJ
following/NN
later/RB
in/IN
her/PRP$
career/NN
when/WRB
she/PRP
was/VBD
an/DT
overdressed/JJ
singer/NN
rather/RB
than/IN
underdressed/JJ
dancer/NN
,/,
Ms./NNP
Rose/NNP
writes/VBZ
:/:
``/``
She/PRP
was/VBD
a/DT
female/JJ
impersonator/NN
who/WP
happened/VBD
to/TO
be/VB
a/DT
woman/NN
./.
''/''
One/CD
devoted/JJ
fan/NN
who/WP
fell/VBD
under/IN
Baker/NNP
's/POS
spell/NN
in/IN
1963/CD
and/CC
began/VBD
collecting/VBG
Baker/NNP
memorabilia/NNS
was/VBD
Bryan/NNP
Hammond/NNP
./.
In/IN
``/``
Josephine/NNP
Baker/NNP
''/''
(/(
Jonathan/NNP
Cape/NNP
,/,
304/CD
pages/NNS
,/,
$/$
35/CD
which/WDT
was/VBD
published/VBN
in/IN
Britain/NNP
last/JJ
year/NN
and/CC
distributed/VBN
in/IN
the/DT
U.S./NNP
this/DT
month/NN
,/,
Mr./NNP
Hammond/NNP
has/VBZ
used/VBN
his/PRP$
collection/NN
to/TO
produce/VB
an/DT
album/NN
of/IN
photographs/NNS
and/CC
drawings/NNS
of/IN
the/DT
star/NN
./.
The/DT
text/NN
by/IN
Patrick/NNP
O'Connor/NNP
is/VBZ
a/DT
tough/JJ
read/NN
,/,
but/CC
the/DT
pictures/NNS
make/VBP
her/PRP$
magnetism/NN
clear/JJ
and/CC
help/VB
explain/VB
why/WRB
Ernest/NNP
Hemingway/NNP
called/VBD
Baker/NNP
``/``
The/DT
most/RBS
sensational/JJ
woman/NN
anybody/NN
ever/RB
saw/VBD
./.
Or/CC
ever/RB
will/MD
./.
''/''
Mr./NNP
Lescaze/NNP
is/VBZ
foreign/JJ
editor/NN
of/IN
the/DT
Journal/NNP
./.
Manville/NNP
,/,
having/VBG
rid/VBN
itself/PRP
of/IN
asbestos/NN
,/,
now/RB
sells/VBZ
fiberglass/NNS
,/,
forest/NN
products/NNS
,/,
minerals/NNS
and/CC
industrial/JJ
goods/NNS
./.
Heady/JJ
stuff/NN
it/PRP
's/VBZ
not/RB
./.
But/CC
Manville/NNP
's/POS
ownership/NN
is/VBZ
unusual/JJ
,/,
and/CC
it/PRP
has/VBZ
caught/VBN
the/DT
eye/NN
of/IN
some/DT
canny/JJ
--/:
and/CC
patient/JJ
--/:
investors/NNS
./.
The/DT
Denver-based/JJ
concern/NN
,/,
which/WDT
emerged/VBD
from/IN
bankruptcy-law/NN
proceedings/NNS
late/RB
last/JJ
year/NN
,/,
is/VBZ
controlled/VBN
by/IN
the/DT
Manville/NNP
Personal/NNP
Injury/NNP
Settlement/NNP
Trust/NNP
./.
The/DT
trust/NN
,/,
which/WDT
owns/VBZ
80/CD
%/NN
of/IN
Manville/NNP
's/POS
stock/NN
on/IN
a/DT
fully/RB
diluted/VBN
basis/NN
,/,
is/VBZ
a/DT
separate/JJ
legal/JJ
entity/NN
that/WDT
is/VBZ
settling/VBG
claims/NNS
with/IN
asbestos/NN
victims/NNS
./.
When/WRB
and/CC
if/IN
the/DT
trust/NN
runs/VBZ
out/IN
of/IN
cash/NN
--/:
which/WDT
seems/VBZ
increasingly/RB
likely/JJ
--/:
it/PRP
will/MD
need/VB
to/TO
convert/VB
its/PRP$
Manville/NNP
stock/NN
to/TO
cash/NN
./.
But/CC
as/IN
an/DT
80/CD
%/NN
owner/NN
,/,
if/IN
it/PRP
tried/VBD
to/TO
sell/VB
much/JJ
of/IN
its/PRP$
stock/NN
in/IN
the/DT
market/NN
,/,
it/PRP
would/MD
likely/RB
depress/VB
the/DT
price/NN
of/IN
its/PRP$
shares/NNS
./.
Some/DT
investors/NNS
say/VBP
there/EX
is/VBZ
a/DT
good/JJ
chance/NN
that/IN
the/DT
trust/NN
will/NN
,/,
instead/RB
,/,
seek/VB
to/TO
convert/VB
the/DT
company/NN
's/POS
shares/NNS
to/TO
cash/NN
,/,
in/IN
some/DT
sort/NN
of/IN
friendly/JJ
restructuring/NN
that/WDT
would/MD
n't/RB
involve/VB
just/RB
dumping/VBG
stock/NN
on/IN
the/DT
market/NN
./.
``/``
Their/PRP$
principal/JJ
asset/NN
is/VBZ
Manville/NNP
common/JJ
stock/NN
,/,
''/''
says/VBZ
Jeffrey/NNP
Halis/NNP
,/,
who/WP
runs/VBZ
Sabre/NNP
Associates/NNP
,/,
an/DT
investment/NN
fund/NN
that/WDT
owns/VBZ
Manville/NNP
shares/NNS
./.
``/``
If/IN
they/PRP
tried/VBD
to/TO
sell/VB
,/,
they/PRP
'd/MD
be/VB
chasing/VBG
their/PRP$
own/JJ
tail/NN
./.
What/WP
makes/VBZ
the/DT
most/JJS
sense/NN
is/VBZ
to/TO
find/VB
someone/NN
who/WP
wants/VBZ
to/TO
buy/VB
the/DT
whole/JJ
company/NN
or/CC
cause/VB
a/DT
recapitalization/NN
of/IN
all/DT
shares/NNS
./.
''/''
The/DT
trust/NN
is/VBZ
n't/RB
commenting/VBG
on/IN
when/WRB
it/PRP
might/MD
need/VB
to/TO
liquefy/VB
its/PRP$
Manville/NNP
stock/NN
./.
However/RB
,/,
the/DT
trust/NN
's/POS
cash/NN
flow/NN
from/IN
investments/NNS
is/VBZ
far/RB
short/RB
of/IN
its/PRP$
payments/NNS
to/TO
asbestos/NN
victims/NNS
./.
Its/PRP$
cash/NN
and/CC
liquid/JJ
securities/NNS
fell/VBD
by/IN
$/$
338/CD
million/CD
in/IN
the/DT
first/JJ
six/CD
months/NNS
of/IN
1989/CD
./.
The/DT
trust/NN
also/RB
will/MD
receive/VB
$/$
75/CD
million/CD
a/DT
year/NN
starting/VBG
in/IN
1991/CD
on/IN
a/DT
bond/NN
it/PRP
holds/VBZ
from/IN
Manville/NNP
./.
And/CC
,/,
beginning/VBG
in/IN
1992/CD
,/,
it/PRP
will/MD
have/VB
a/DT
claim/NN
on/IN
as/RB
much/JJ
as/IN
20/CD
%/NN
of/IN
Manville/NNP
's/POS
annual/JJ
net/JJ
income/NN
./.
Even/RB
so/RB
,/,
the/DT
trust/NN
would/MD
seem/VB
to/TO
be/VB
facing/VBG
a/DT
cash/NN
crunch/NN
./.
As/IN
of/IN
June/NNP
30/CD
,/,
it/PRP
had/VBD
settled/VBN
only/RB
about/RB
15,000/CD
of/IN
the/DT
81,000/CD
received/VBN
claims/NNS
from/IN
asbestos/NN
victims/NNS
,/,
for/IN
an/DT
average/NN
of/IN
$/$
40,424/CD
each/DT
./.
The/DT
average/NN
should/MD
drop/VB
over/IN
time/NN
,/,
since/IN
the/DT
most/RBS
expensive/JJ
claims/NNS
are/VBP
being/VBG
settled/VBN
first/RB
And/CC
as/IN
of/IN
midyear/NN
,/,
settled/JJ
but/CC
unpaid/JJ
claims/NNS
amounted/VBD
to/TO
$/$
136/CD
million/CD
--/:
more/JJR
than/IN
half/PDT
the/DT
trust/NN
's/POS
total/NN
of/IN
$/$
268/CD
million/CD
in/IN
cash/NN
and/CC
marketable/JJ
securities/NNS
./.
``/``
At/IN
some/DT
point/NN
,/,
we/PRP
're/VBP
going/VBG
to/TO
need/VB
an/DT
infusion/NN
of/IN
funds/NNS
,/,
''/''
a/DT
person/NN
close/RB
to/TO
the/DT
trust/NN
says/VBZ
./.
Even/RB
before/IN
then/RB
,/,
the/DT
trust/NN
may/MD
be/VB
eager/JJ
to/TO
unload/VB
Manville/NNP
stock/NN
./.
It/PRP
does/VBZ
n't/RB
pay/VB
a/DT
dividend/NN
,/,
and/CC
this/DT
trust/NN
needs/VBZ
income/NN
./.
Moreover/RB
,/,
with/IN
88/CD
%/NN
of/IN
its/PRP$
assets/NNS
tied/VBN
up/RP
in/IN
Manville/NNP
,/,
the/DT
trust/NN
is/VBZ
badly/RB
in/IN
need/NN
of/IN
diversification/NN
./.
``/``
Obviously/RB
,/,
a/DT
diversified/JJ
portfolio/NN
would/MD
have/VB
less/JJR
risk/NN
,/,
''/''
the/DT
person/NN
close/RB
to/TO
the/DT
trust/NN
says/VBZ
./.
Manville/NNP
itself/PRP
does/VBZ
n't/RB
rule/VB
out/RP
a/DT
restructuring/NN
./.
Though/IN
the/DT
ink/NN
is/VBZ
barely/RB
dry/JJ
on/IN
its/PRP$
new/JJ
,/,
post-bankruptcy/JJ
law/NN
structure/NN
,/,
Bill/NNP
Bullock/NNP
,/,
Manville/NNP
's/POS
head/NN
of/IN
investor/NN
relations/NNS
,/,
says/VBZ
the/DT
company/NN
is/VBZ
continually/RB
pondering/VBG
``/``
whether/IN
there/EX
is/VBZ
a/DT
better/JJR
way/NN
to/TO
be/VB
structured/VBN
./.
We/PRP
understand/VBP
that/IN
the/DT
trust/NN
is/VBZ
ultimately/RB
going/VBG
to/TO
need/VB
to/TO
sell/VB
some/DT
of/IN
our/PRP$
shares/NNS
,/,
''/''
he/PRP
says/VBZ
./.
Of/IN
course/NN
,/,
one/CD
option/NN
would/MD
be/VB
for/IN
Manville/NNP
to/TO
buy/VB
out/RP
the/DT
trust/NN
's/POS
shares/NNS
--/:
which/WDT
would/MD
do/VB
little/JJ
to/TO
benefit/VB
public/JJ
stockholders/NNS
./.
But/CC
the/DT
trust/NN
,/,
in/IN
most/JJS
cases/NNS
,/,
is/VBZ
forbidden/VBN
from/IN
seeking/VBG
a/DT
buyer/NN
for/IN
only/RB
its/PRP$
shares/NNS
before/IN
November/NNP
1993/CD
./.
And/CC
both/CC
the/DT
trust/NN
and/CC
Manville/NNP
are/VBP
seeking/VBG
to/TO
avoid/VB
the/DT
bad/JJ
publicity/NN
that/IN
,/,
in/IN
the/DT
asbestos/NN
era/NN
,/,
tarred/VBD
the/DT
Manville/NNP
name/NN
./.
Thus/RB
,/,
analysts/NNS
say/VBP
,/,
the/DT
trust/NN
is/VBZ
unlikely/JJ
to/TO
do/VB
anything/NN
that/WDT
would/MD
hurt/VB
Manville/NNP
's/POS
other/JJ
shareholders/NNS
./.
``/``
This/DT
is/VBZ
a/DT
rare/JJ
case/NN
of/IN
a/DT
company/NN
with/IN
a/DT
big/JJ
majority/NN
holder/NN
which/WDT
will/MD
probably/RB
act/VB
in/IN
the/DT
interests/NNS
of/IN
the/DT
minority/NN
holders/NNS
,/,
''/''
one/CD
investor/NN
says/VBZ
./.
Even/RB
if/IN
there/EX
is/VBZ
no/DT
restructuring/NN
,/,
Manville/NNP
seems/VBZ
to/TO
be/VB
attractive/JJ
long-term/RB
./.
Its/PRP$
stock/NN
,/,
at/IN
9/CD
5\/8/CD
,/,
trades/VBZ
at/IN
about/RB
8/CD
1\/2/CD
times/NNS
estimated/JJ
1989/CD
earnings/NNS
--/:
an/DT
appropriately/RB
low/JJ
multiple/NN
for/IN
a/DT
company/NN
with/IN
recession-sensitive/JJ
customers/NNS
./.
Mr./NNP
Bullock/NNP
says/VBZ
45/CD
%/NN
of/IN
revenues/NNS
are/VBP
tied/VBN
to/TO
construction/NN
./.
Analysts/NNS
predict/VBP
little/JJ
or/CC
no/DT
near-term/JJ
growth/NN
./.
They/PRP
are/VBP
,/,
nonetheless/RB
,/,
high/RB
on/IN
Manville/NNP
's/POS
management/NN
./.
``/``
It/PRP
's/VBZ
one/CD
of/IN
the/DT
best/JJS
in/IN
the/DT
business/NN
,/,
''/''
says/VBZ
Salomon/NNP
Brothers/NNP
analyst/NN
Stephen/NNP
Dobi/NNP
./.
And/CC
he/PRP
says/VBZ
Manville/NNP
has/VBZ
the/DT
financial/JJ
flexibility/NN
to/TO
buy/VB
other/JJ
companies/NNS
at/IN
the/DT
best/JJS
possible/JJ
moment/NN
when/WRB
other/JJ
construction-related/JJ
firms/NNS
are/VBP
hurting/VBG
and/CC
selling/VBG
cheap/JJ
./.
With/IN
a/DT
conservative/JJ
debt-to-equity/JJ
ratio/NN
of/IN
1-to-1/JJ
--/:
and/CC
$/$
329/CD
million/CD
in/IN
cash/NN
--/:
Manville/NNP
is/VBZ
indeed/RB
actively/RB
on/IN
the/DT
prowl/NN
./.
So/RB
far/RB
,/,
as/IN
a/DT
price-conscious/JJ
shopper/NN
,/,
Manville/NNP
has/VBZ
n't/RB
bought/VBD
much/JJ
./.
Paul/NNP
Kleinaitis/NNP
,/,
an/DT
analyst/NN
at/IN
Duff/NNP
&/CC
Phelps/NNP
,/,
says/VBZ
,/,
``/``
Even/RB
though/IN
they/PRP
have/VBP
borrowing/NN
power/NN
,/,
they/PRP
have/VBP
been/VBN
disciplined/VBN
about/IN
acquisitions/NNS
./.
''/''
And/CC
Mr./NNP
Kleinaitis/NNP
says/VBZ
that/IN
with/IN
80/CD
%/NN
of/IN
its/PRP$
stock/NN
in/IN
friendly/JJ
hands/NNS
,/,
Manville/NNP
is/VBZ
the/DT
rare/JJ
publicly/RB
traded/VBN
company/NN
that/WDT
can/MD
ignore/VB
short-term/JJ
stock/NN
fluctuations/NNS
and/CC
plan/NN
for/IN
the/DT
long/JJ
haul/NN
./.
Manville/NNP
NYSE/NNP
;/:
Symbol/NN
:/:
MVL/NNP
Business/NN
:/:
Forest/NN
products/NNS
and/CC
roofing/NN
Year/NN
ended/VBN
Dec./NNP
31/CD
,/,
1988/CD
:/:
Sales/NNS
:/:
$/$
2.06/CD
billions/NNS
Net/JJ
loss/NN
:/:
$/$
1.30/CD
billion/CD
\*/SYM
Third/JJ
quarter/NN
,/,
Sept./NNP
30/CD
,/,
1989/CD
:/:
Per-share/JJ
earnings/NNS
:/:
30/CD
cents/NNS
vs./JJ
44/CD
cents/NNS
\*\*/SYM
Average/JJ
daily/JJ
trading/NN
volume/NN
:/:
74,351/CD
shares/NNS
Common/JJ
shares/NNS
outstanding/JJ
:/:
120/CD
million/CD
\*/SYM
Includes/VBZ
$/$
1.29/CD
billion/CD
extraordinary/JJ
charge/NN
./.
\*\*/SYM
Year/NN
ago/RB
figure/NN
is/VBZ
restated/VBN
./.
Emerson/NNP
Electric/NNP
Co./NNP
and/CC
Robert/NNP
Bosch/NNP
G.m.b.H./NNP
said/VBD
the/DT
Federal/NNP
Trade/NNP
Commission/NNP
has/VBZ
requested/VBN
additional/JJ
information/NN
from/IN
the/DT
two/CD
companies/NNS
about/IN
their/PRP$
announced/VBN
intention/NN
to/TO
acquire/VB
Vermont/NNP
American/NNP
Corp./NNP
for/IN
$/$
40/CD
a/DT
share/NN
,/,
or/CC
about/RB
$/$
440/CD
million/CD
./.
Yesterday/NN
,/,
in/IN
composite/JJ
trading/NN
on/IN
the/DT
American/NNP
Stock/NNP
Exchange/NNP
,/,
Vermont/NNP
American/NNP
common/NN
closed/VBD
at/IN
$/$
39.75/CD
,/,
off/RB
25/CD
cents/NNS
./.
The/DT
FTC/NNP
's/POS
request/NN
was/VBD
``/``
not/RB
unusual/JJ
''/''
and/CC
Emerson/NNP
will/MD
make/VB
a/DT
``/``
full/JJ
and/CC
prompt/JJ
''/''
response/NN
,/,
according/VBG
to/TO
a/DT
spokesman/NN
./.
Spokesmen/NNP
for/IN
Emerson/NNP
and/CC
Vermont/NNP
American/NNP
,/,
which/WDT
has/VBZ
agreed/VBN
to/TO
be/VB
acquired/VBN
,/,
said/VBD
they/PRP
do/VBP
n't/RB
anticipate/VB
``/``
any/DT
problems/NNS
''/''
with/IN
the/DT
completion/NN
of/IN
the/DT
transaction/NN
./.
An/DT
FTC/NNP
spokesman/NN
said/VBD
the/DT
matter/NN
is/VBZ
``/``
in/IN
a/DT
non-public/JJ
posture/NN
at/IN
this/DT
time/NN
''/''
and/CC
declined/VBD
to/TO
comment/VB
further/RB
./.
Emerson/NNP
and/CC
Bosch/NNP
,/,
through/IN
their/PRP$
joint/JJ
acquisition/NN
arm/NN
,/,
Maple/NNP
Acquisition/NNP
,/,
have/VBP
begun/VBN
a/DT
cash/NN
tender/NN
offer/NN
for/IN
all/DT
of/IN
Vermont/NNP
's/POS
common/JJ
shares/NNS
outstanding/JJ
./.
The/DT
offer/NN
,/,
set/VBN
to/TO
expire/VB
Nov./NNP
1/CD
,/,
may/MD
be/VB
extended/VBN
pending/VBG
the/DT
timing/NN
and/CC
resolution/NN
of/IN
the/DT
FTC/NNP
request/NN
,/,
the/DT
companies/NNS
said/VBD
./.
St./NNP
Louis-based/JJ
Emerson/NNP
and/CC
Stuttgart-based/JJ
Bosch/NNP
make/VBP
electrical/JJ
and/CC
electronic/JJ
products/NNS
,/,
including/VBG
power/NN
tools/NNS
./.
The/DT
Vermont/NNP
American/NNP
acquisition/NN
is/VBZ
designed/VBN
to/TO
enhance/VB
their/PRP$
position/NN
in/IN
the/DT
accessories/NNS
portion/NN
of/IN
the/DT
power-tool/JJ
industry/NN
./.
Santa/NNP
Fe/NNP
Pacific/NNP
Corp./NNP
is/VBZ
preparing/VBG
a/DT
plan/NN
to/TO
sell/VB
a/DT
20/CD
%/NN
stake/NN
in/IN
its/PRP$
large/JJ
real/JJ
estate/NN
unit/NN
to/TO
a/DT
California/NNP
public/JJ
employee/NN
pension/NN
fund/NN
for/IN
$/$
400/CD
million/CD
,/,
after/IN
which/WDT
it/PRP
would/MD
spin/VB
off/RP
the/DT
realty/NN
operation/NN
to/TO
shareholders/NNS
./.
The/DT
plan/NN
places/VBZ
an/DT
indicated/JJ
value/NN
on/IN
the/DT
real/JJ
estate/NN
operation/NN
,/,
Santa/NNP
Fe/NNP
Pacific/NNP
Realty/NNP
Corp./NNP
,/,
of/IN
$/$
2/CD
billion/CD
./.
Santa/NNP
Fe/NNP
Pacific/NNP
directors/NNS
are/VBP
expected/VBN
to/TO
review/VB
the/DT
plan/NN
at/IN
a/DT
meeting/NN
today/NN
,/,
according/VBG
to/TO
people/NNS
familiar/JJ
with/IN
the/DT
transaction/NN
./.
If/IN
approved/VBN
,/,
the/DT
sale/NN
is/VBZ
expected/VBN
to/TO
close/VB
by/IN
year/NN
's/POS
end/NN
,/,
with/IN
the/DT
spinoff/NN
occurring/VBG
by/IN
the/DT
end/NN
of/IN
1992/CD
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
yesterday/NN
,/,
Santa/NNP
Fe/NNP
Pacific/NNP
closed/VBD
at/IN
$/$
20.625/CD
,/,
down/RB
25/CD
cents/NNS
./.
Santa/NNP
Fe/NNP
Pacific/NNP
Realty/NNP
is/VBZ
a/DT
major/JJ
California/NNP
land/NN
and/CC
building/NN
owner/NN
whose/WP$
prime/JJ
properties/NNS
include/VBP
1,850/CD
undeveloped/JJ
acres/NNS
in/IN
the/DT
San/NNP
Francisco/NNP
Bay/NNP
area/NN
,/,
and/CC
several/JJ
office/NN
sites/NNS
./.
A/DT
spokesman/NN
said/VBD
the/DT
properties/NNS
survived/VBD
without/IN
significant/JJ
damage/NN
in/IN
last/JJ
week/NN
's/POS
Northern/NNP
California/NNP
earthquake/NN
./.
As/IN
a/DT
result/NN
of/IN
the/DT
partial/JJ
sale/NN
and/CC
spinoff/NN
,/,
the/DT
$/$
56/CD
billion/CD
California/NNP
Public/NNP
Employees/NNP
Retirement/NNP
System/NNP
would/MD
obtain/VB
two/CD
seats/NNS
on/IN
the/DT
board/NN
of/IN
the/DT
real/JJ
estate/NN
operation/NN
,/,
according/VBG
to/TO
officials/NNS
of/IN
the/DT
fund/NN
,/,
who/WP
described/VBD
the/DT
plan/NN
./.
A/DT
spokesman/NN
for/IN
Chicago-based/JJ
Santa/NNP
Fe/NNP
Pacific/NNP
confirmed/VBD
that/IN
negotiations/NNS
were/VBD
being/VBG
held/VBN
with/IN
the/DT
fund/NN
./.
Also/RB
holding/VBG
two/CD
seats/NNS
each/DT
on/IN
the/DT
board/NN
,/,
they/PRP
said/VBD
,/,
would/MD
be/VB
Olympia/NNP
&/CC
York/NNP
Developments/NNP
Ltd./NNP
,/,
controlled/VBN
by/IN
the/DT
Reichmann/NNP
family/NN
of/IN
Canada/NNP
,/,
and/CC
Itel/NNP
Corp./NNP
,/,
controlled/VBN
by/IN
Chicago/NNP
businessman/NN
Sam/NNP
Zell/NNP
./.
The/DT
Reichmanns/NNP
and/CC
Mr./NNP
Zell/NNP
,/,
the/DT
largest/JJS
holders/NNS
of/IN
Santa/NNP
Fe/NNP
Pacific/NNP
stock/NN
,/,
have/VBP
been/VBN
looking/VBG
for/IN
ways/NNS
to/TO
raise/VB
the/DT
value/NN
of/IN
their/PRP$
investments/NNS
,/,
including/VBG
possible/JJ
spinoffs/NNS
./.
Itel/NNP
bought/VBD
a/DT
17/CD
%/NN
stake/NN
in/IN
Sante/NNP
Fe/NNP
Pacific/NNP
last/JJ
year/NN
and/CC
Olympia/NNP
&/CC
York/NNP
later/RB
purchased/VBD
about/RB
a/DT
20/CD
%/NN
stake/NN
;/:
they/PRP
would/MD
have/VB
interests/NNS
in/IN
the/DT
new/JJ
realty/NN
company/NN
in/IN
line/NN
with/IN
their/PRP$
holdings/NNS
in/IN
Sante/NNP
Fe/NNP
Pacific/NNP
./.
The/DT
sale/NN
and/CC
spinoff/NN
of/IN
the/DT
real/JJ
estate/NN
unit/NN
is/VBZ
the/DT
first/JJ
phase/NN
of/IN
what/WP
could/MD
lead/VB
to/TO
the/DT
breakup/NN
of/IN
Santa/NNP
Fe/NNP
Pacific/NNP
into/IN
free-standing/JJ
companies/NNS
for/IN
its/PRP$
railroad/NN
and/CC
energy/NN
operations/NNS
,/,
as/RB
well/RB
as/IN
real/JJ
estate/NN
./.
The/DT
debt-laden/JJ
parent/NN
has/VBZ
been/VBN
under/IN
pressure/NN
from/IN
large/JJ
shareholders/NNS
to/TO
boost/VB
the/DT
company/NN
's/POS
share/NN
price/NN
./.
At/IN
the/DT
same/JJ
time/NN
it/PRP
has/VBZ
been/VBN
caught/VBN
in/IN
an/DT
earnings/NNS
squeeze/NN
./.
The/DT
California/NNP
pension/NN
fund/NN
's/POS
planned/JJ
investment/NN
in/IN
the/DT
real/JJ
estate/NN
unit/NN
is/VBZ
unusual/JJ
./.
Pension/NN
funds/NNS
rarely/RB
own/VBP
as/RB
much/JJ
as/IN
a/DT
20/CD
%/NN
stake/NN
in/IN
what/WP
is/VBZ
expected/VBN
to/TO
be/VB
a/DT
publicly/RB
traded/VBN
company/NN
./.
In/IN
addition/NN
,/,
pension/NN
funds/NNS
are/VBP
rarely/RB
given/VBN
seats/NNS
on/IN
company/NN
boards/NNS
and/CC
most/RBS
often/RB
try/VBP
to/TO
avoid/VB
them/PRP
because/IN
of/IN
legal/JJ
concerns/NNS
./.
But/CC
fund/NN
officials/NNS
said/VBD
the/DT
Santa/NNP
Fe/NNP
Pacific/NNP
Realty/NNP
investment/NN
provides/VBZ
an/DT
opportunity/NN
to/TO
buy/VB
a/DT
stake/NN
in/IN
a/DT
large/JJ
real/JJ
estate/NN
portfolio/NN
heavily/RB
weighted/VBN
with/IN
California/NNP
properties/NNS
./.
It/PRP
also/RB
marks/VBZ
a/DT
``/``
major/JJ
commitment/NN
to/TO
{/(
real/JJ
estate/NN
development/NN
,/,
which/WDT
we/PRP
have/VBP
n't/RB
been/VBN
involved/VBN
with/IN
before/RB
,/,
''/''
said/VBD
Dale/NNP
Hanson/NNP
,/,
the/DT
fund/NN
's/POS
executive/JJ
director/NN
./.
Under/IN
the/DT
proposed/JJ
plan/NN
,/,
the/DT
fund/NN
would/MD
also/RB
lend/VB
Santa/NNP
Fe/NNP
Pacific/NNP
Realty/NNP
$/$
75/CD
million/CD
in/IN
the/DT
form/NN
of/IN
a/DT
note/NN
that/WDT
would/MD
be/VB
convertible/JJ
into/IN
additional/JJ
shares/NNS
of/IN
the/DT
realty/NN
company/NN
after/IN
the/DT
second/JJ
year/NN
at/IN
the/DT
then-prevailing/JJ
market/NN
price/NN
./.
The/DT
note/NN
would/MD
accrue/VB
interest/NN
at/IN
the/DT
rate/NN
of/IN
13.5/CD
%/NN
a/DT
year/NN
,/,
which/WDT
would/MD
be/VB
payable/JJ
to/TO
the/DT
fund/NN
after/IN
five/CD
years/NNS
,/,
according/VBG
to/TO
Stephen/NNP
E./NNP
Roulac/NNP
,/,
a/DT
real/JJ
estate/NN
consultant/NN
working/VBG
for/IN
the/DT
fund/NN
./.
The/DT
purpose/NN
of/IN
the/DT
note/NN
is/VBZ
to/TO
provide/VB
added/JJ
capital/NN
for/IN
the/DT
spun-off/JJ
company/NN
in/IN
a/DT
form/NN
that/WDT
will/MD
save/VB
it/PRP
spending/VBG
cash/NN
on/IN
immediate/JJ
interest/NN
payments/NNS
,/,
Mr./NNP
Roulac/NNP
said/VBD
./.
The/DT
spun-off/JJ
concern/NN
``/``
clearly/RB
will/MD
be/VB
one/CD
of/IN
the/DT
dominant/JJ
real/JJ
estate/NN
development/NN
companies/NNS
with/IN
a/DT
prime/JJ
portfolio/NN
,/,
''/''
he/PRP
said/VBD
./.
For/IN
the/DT
last/JJ
year/NN
,/,
Santa/NNP
Fe/NNP
Pacific/NNP
has/VBZ
redirected/VBN
its/PRP$
real/JJ
estate/NN
operations/NNS
toward/IN
longer-term/JJ
development/NN
of/IN
its/PRP$
properties/NNS
,/,
hurting/VBG
profits/NNS
that/WDT
the/DT
parent/NN
had/VBD
generated/VBN
in/IN
the/DT
past/NN
from/IN
periodic/JJ
sales/NNS
from/IN
its/PRP$
portfolio/NN
./.
Real/JJ
estate/NN
operating/NN
income/NN
for/IN
the/DT
first/JJ
nine/CD
months/NNS
fell/VBD
to/TO
$/$
71.9/CD
million/CD
from/IN
$/$
143/CD
million/CD
a/DT
year/NN
earlier/RBR
,/,
the/DT
company/NN
said/VBD
./.
In/IN
a/DT
statement/NN
late/RB
yesterday/NN
,/,
Santa/NNP
Fe/NNP
Pacific/NNP
's/POS
chairman/NN
,/,
Robert/NNP
D./NNP
Krebs/NNP
,/,
said/VBD
that/IN
Santa/NNP
Fe/NNP
Pacific/NNP
Realty/NNP
would/MD
repay/VB
more/JJR
than/IN
$/$
500/CD
million/CD
in/IN
debt/NN
owed/VBN
to/TO
the/DT
parent/NN
before/IN
the/DT
planned/JJ
spinoff/NN
./.
That/DT
would/MD
help/VB
reduce/VB
Santa/NNP
Fe/NNP
Pacific/NNP
's/POS
remaining/VBG
debt/NN
to/TO
about/RB
$/$
600/CD
million/CD
from/IN
a/DT
high/JJ
of/IN
$/$
3.7/CD
billion/CD
in/IN
early/JJ
1988/CD
./.
It/PRP
was/VBD
n't/RB
clear/JJ
where/WRB
Santa/NNP
Fe/NNP
Pacific/NNP
expected/VBD
to/TO
obtain/VB
the/DT
payment/NN
of/IN
more/JJR
than/IN
$/$
500/CD
million/CD
,/,
which/WDT
would/MD
be/VB
well/RB
above/IN
the/DT
$/$
400/CD
million/CD
that/DT
California/NNP
pension/NN
fund/NN
officials/NNS
say/VBP
they/PRP
plan/VBP
to/TO
provide/VB
./.
The/DT
realty/NN
unit/NN
might/MD
take/VB
on/RP
new/JJ
debt/NN
or/CC
obtain/VB
additional/JJ
investors/NNS
,/,
among/IN
other/JJ
possibilities/NNS
./.
The/DT
Santa/NNP
Fe/NNP
Pacific/NNP
spokesman/NN
declined/VBD
to/TO
comment/VB
on/IN
that/DT
aspect/NN
,/,
saying/VBG
the/DT
deal/NN
was/VBD
still/RB
under/IN
negotiation/NN
./.
Santa/NNP
Fe/NNP
Pacific/NNP
Realty/NNP
owns/VBZ
2.8/CD
million/CD
acres/NNS
of/IN
property/NN
,/,
including/VBG
219/CD
buildings/NNS
with/IN
more/JJR
than/IN
11/CD
million/CD
square/JJ
feet/NNS
of/IN
space/NN
./.
It/PRP
also/RB
holds/VBZ
nearly/RB
40,000/CD
acres/NNS
of/IN
raw/JJ
land/NN
with/IN
development/NN
potential/NN
,/,
but/CC
under/IN
a/DT
previously/RB
announced/VBN
strategy/NN
,/,
the/DT
company/NN
has/VBZ
targeted/VBN
building/NN
on/IN
5,400/CD
acres/NNS
in/IN
California/NNP
,/,
Arizona/NNP
and/CC
the/DT
Chicago/NNP
area/NN
./.
Among/IN
those/DT
are/VBP
the/DT
1,850/CD
acres/NNS
in/IN
the/DT
San/NNP
Francisco/NNP
Bay/NNP
area/NN
,/,
including/VBG
208/CD
acres/NNS
in/IN
the/DT
Mission/NNP
Bay/NNP
area/NN
./.
The/DT
California/NNP
pension/NN
fund/NN
,/,
which/WDT
has/VBZ
$/$
16/CD
billion/CD
already/RB
invested/VBN
in/IN
real/JJ
estate/NN
and/CC
mortgages/NNS
,/,
could/MD
be/VB
a/DT
valuable/JJ
funding/NN
source/NN
for/IN
that/DT
development/NN
,/,
although/IN
it/PRP
is/VBZ
n't/RB
obliged/VBN|JJ
to/TO
make/VB
further/JJ
investments/NNS
./.
The/DT
fund/NN
is/VBZ
the/DT
nation/NN
's/POS
largest/JJS
public/JJ
employee/NN
fund/NN
,/,
and/CC
it/PRP
has/VBZ
a/DT
growing/VBG
cash/NN
flow/NN
now/RB
topping/VBG
$/$
3/CD
billion/CD
a/DT
year/NN
./.
Fund/NN
officials/NNS
negotiated/VBD
the/DT
final/JJ
structure/NN
of/IN
the/DT
proposed/JJ
deal/NN
with/IN
Santa/NNP
Fe/NNP
Pacific/NNP
,/,
but/CC
they/PRP
were/VBD
approached/VBN
with/IN
the/DT
idea/NN
by/IN
real/JJ
estate/NN
brokers/NNS
JMB/NNP
Realty/NNP
Corp./NNP
of/IN
Chicago/NNP
./.
JMB/NNP
officials/NNS
are/VBP
expected/VBN
to/TO
be/VB
hired/VBN
to/TO
represent/VB
the/DT
pension/NN
fund/NN
on/IN
the/DT
Santa/NNP
Fe/NNP
Pacific/NNP
Realty/NNP
board/NN
,/,
Mr./NNP
Roulac/NNP
said/VBD
,/,
to/TO
insulate/VB
the/DT
fund/NN
from/IN
potential/JJ
liability/NN
problems/NNS
./.
GAF/NNP
,/,
Part/NNP
III/NNP
is/VBZ
scheduled/VBN
to/TO
begin/VB
today/NN
./.
After/IN
two/CD
mistrials/NNS
,/,
the/DT
stakes/NNS
in/IN
the/DT
stock/NN
manipulation/NN
trial/NN
of/IN
GAF/NNP
Corp./NNP
and/CC
its/PRP$
vice/NN
chairman/NN
,/,
James/NNP
T./NNP
Sherwin/NNP
,/,
have/VBP
changed/VBN
considerably/RB
./.
The/DT
first/JJ
two/CD
GAF/NNP
trials/NNS
were/VBD
watched/VBN
closely/RB
on/IN
Wall/NNP
Street/NNP
because/IN
they/PRP
were/VBD
considered/VBN
to/TO
be/VB
important/JJ
tests/NNS
of/IN
the/DT
government/NN
's/POS
ability/NN
to/TO
convince/VB
a/DT
jury/NN
of/IN
allegations/NNS
stemming/VBG
from/IN
its/PRP$
insider-trading/NN
investigations/NNS
./.
In/IN
an/DT
eight-count/JJ
indictment/NN
,/,
the/DT
government/NN
charged/VBD
GAF/NNP
,/,
a/DT
Wayne/NNP
,/,
N.J./NNP
,/,
chemical/NN
maker/NN
,/,
and/CC
Mr./NNP
Sherwin/NNP
with/IN
illegally/RB
attempting/VBG
to/TO
manipulate/VB
the/DT
common/JJ
stock/NN
of/IN
Union/NNP
Carbide/NNP
Corp./NNP
in/IN
advance/NN
of/IN
GAF/NNP
's/POS
planned/JJ
sale/NN
of/IN
a/DT
large/JJ
block/NN
of/IN
the/DT
stock/NN
in/IN
1986/CD
./.
The/DT
government/NN
's/POS
credibility/NN
in/IN
the/DT
GAF/NNP
case/NN
depended/VBD
heavily/RB
on/IN
its/PRP$
star/JJ
witness/NN
,/,
Boyd/NNP
L./NNP
Jefferies/NNP
,/,
the/DT
former/JJ
Los/NNP
Angeles/NNP
brokerage/NN
chief/NN
who/WP
was/VBD
implicated/VBN
by/IN
former/JJ
arbitrager/NN
Ivan/NNP
Boesky/NNP
,/,
and/CC
then/RB
pointed/VBD
the/DT
finger/NN
at/IN
Mr./NNP
Sherwin/NNP
,/,
takeover/NN
speculator/NN
Salim/NNP
B./NNP
Lewis/NNP
and/CC
corporate/JJ
raider/NN
Paul/NNP
Bilzerian/NNP
./.
The/DT
GAF/NNP
trials/NNS
were/VBD
viewed/VBN
as/IN
previews/NNS
of/IN
the/DT
government/NN
's/POS
strength/NN
in/IN
its/PRP$
cases/NNS
against/IN
Mr./NNP
Lewis/NNP
and/CC
Mr./NNP
Bilzerian/NNP
./.
Mr./NNP
Jefferies/NNP
's/POS
performance/NN
as/IN
a/DT
witness/NN
was/VBD
expected/VBN
to/TO
affect/VB
his/PRP$
sentencing/NN
./.
But/CC
GAF/NNP
's/POS
bellwether/JJ
role/NN
was/VBD
short-lived/JJ
./.
The/DT
first/JJ
GAF/NNP
trial/NN
ended/VBD
in/IN
a/DT
mistrial/NN
after/IN
four/CD
weeks/NNS
when/WRB
U.S./NNP
District/NNP
Judge/NNP
Mary/NNP
Johnson/NNP
Lowe/NNP
found/VBD
that/IN
a/DT
prosecutor/NN
improperly/RB
,/,
but/CC
unintentionally/RB
,/,
withheld/VBD
a/DT
document/NN
./.
After/IN
93/CD
hours/NNS
of/IN
deliberation/NN
,/,
the/DT
jurors/NNS
in/IN
the/DT
second/JJ
trial/NN
said/VBD
they/PRP
were/VBD
hopelessly/RB
deadlocked/JJ
,/,
and/CC
another/DT
mistrial/NN
was/VBD
declared/VBN
on/IN
March/NNP
22/CD
./.
Meanwhile/RB
,/,
a/DT
federal/JJ
jury/NN
found/VBD
Mr./NNP
Bilzerian/NNP
guilty/JJ
on/IN
securities/NNS
fraud/NN
and/CC
other/JJ
charges/NNS
in/IN
June/NNP
./.
A/DT
month/NN
later/RB
,/,
Mr./NNP
Jefferies/NNP
was/VBD
spared/VBN
a/DT
jail/NN
term/NN
by/IN
a/DT
federal/JJ
judge/NN
who/WP
praised/VBD
him/PRP
for/IN
helping/VBG
the/DT
government/NN
./.
In/IN
August/NNP
,/,
Mr./NNP
Lewis/NNP
pleaded/VBD
guilty/JJ
to/TO
three/CD
felony/NN
counts/NNS
./.
Nevertheless/RB
,/,
the/DT
stakes/NNS
are/VBP
still/RB
high/JJ
for/IN
the/DT
players/NNS
directly/RB
involved/VBN
in/IN
the/DT
GAF/NNP
case/NN
./.
The/DT
mistrials/NNS
have/VBP
left/VBN
the/DT
reputations/NNS
of/IN
GAF/NNP
,/,
Mr./NNP
Sherwin/NNP
and/CC
GAF/NNP
Chairman/NNP
Samuel/NNP
Heyman/NNP
in/IN
limbo/NN
./.
For/IN
Mr./NNP
Sherwin/NNP
,/,
a/DT
conviction/NN
could/MD
carry/VB
penalties/NNS
of/IN
five/CD
years/NNS
in/IN
prison/NN
and/CC
a/DT
$/$
250,000/CD
fine/JJ
on/IN
each/DT
count/NN
./.
GAF/NNP
faces/VBZ
potential/JJ
fines/NNS
of/IN
$/$
500,000/CD
for/IN
each/DT
count/NN
./.
Individuals/NNS
familiar/JJ
with/IN
the/DT
case/NN
said/VBD
that/IN
throughout/IN
September/NNP
,/,
defense/NN
attorneys/NNS
were/VBD
talking/VBG
with/IN
the/DT
government/NN
in/IN
an/DT
effort/NN
to/TO
prevent/VB
a/DT
trial/NN
,/,
but/CC
by/IN
the/DT
end/NN
of/IN
the/DT
month/NN
the/DT
talks/NNS
had/VBD
ended/VBN
./.
There/EX
is/VBZ
much/JJ
speculation/NN
among/IN
attorneys/NNS
not/RB
involved/VBN
that/IN
the/DT
strategy/NN
of/IN
GAF/NNP
's/POS
attorney/NN
,/,
Arthur/NNP
Liman/NNP
,/,
and/CC
Mr./NNP
Sherwin/NNP
's/POS
counsel/NN
,/,
Stephen/NNP
Kaufman/NNP
,/,
will/MD
include/VB
testimony/NN
by/IN
Mr./NNP
Sherwin/NNP
or/CC
Mr./NNP
Heyman/NNP
./.
Neither/DT
testified/VBD
at/IN
the/DT
previous/JJ
trials/NNS
./.
For/IN
now/RB
,/,
defense/NN
attorneys/NNS
are/VBP
tight-lipped/JJ
about/IN
their/PRP$
plans/NNS
./.
Max/NNP
Gitter/NNP
,/,
another/DT
GAF/NNP
defense/NN
attorney/NN
,/,
said/VBD
yesterday/NN
,/,
``/``
As/IN
we/PRP
go/VBP
in/IN
for/IN
the/DT
third/JJ
time/NN
,/,
Yogi/NNP
Berra/NNP
's/POS
famous/JJ
line/NN
is/VBZ
apt/JJ
:/:
`/``
It/PRP
's/VBZ
deja/NN
vu/NN
all/RB
over/RB
again/RB
./.
'/''
''/''
DALKON/NNP
SHIELD/NNP
CLAIMANTS/NNS
hope/VBP
to/TO
stop/VB
reorganization-plan/JJ
appeal/NN
./.
Attorneys/NNS
for/IN
more/JJR
than/IN
18,000/CD
women/NNS
who/WP
claim/VBP
injuries/NNS
from/IN
the/DT
Dalkon/NNP
Shield/NNP
contraceptive/JJ
device/NN
have/VBP
asked/VBN
the/DT
U.S./NNP
Supreme/NNP
Court/NNP
to/TO
refuse/VB
to/TO
hear/VB
an/DT
appeal/NN
of/IN
the/DT
bankruptcy-law/NN
reorganization/NN
plan/NN
for/IN
A.H./NNP
Robins/NNP
Co./NNP
,/,
which/WDT
manufactured/VBD
the/DT
device/NN
./.
The/DT
dispute/NN
pits/VBZ
two/CD
groups/NNS
of/IN
claimants/NNS
against/IN
each/DT
other/JJ
./.
Baltimore/NNP
attorney/NN
Michael/NNP
A./NNP
Pretl/NNP
and/CC
17/CD
other/JJ
attorneys/NNS
representing/VBG
18,136/CD
claimants/NNS
in/IN
the/DT
U.S./NNP
and/CC
abroad/RB
argue/VBP
that/IN
the/DT
appeal/NN
would/MD
delay/VB
--/:
and/CC
perhaps/RB
even/RB
destroy/VB
--/:
a/DT
$/$
2.38/CD
billion/CD
settlement/NN
fund/NN
that/WDT
is/VBZ
the/DT
centerpiece/NN
of/IN
the/DT
reorganization/NN
plan/NN
./.
The/DT
bankruptcy-court/NN
reorganization/NN
is/VBZ
being/VBG
challenged/VBN
before/IN
the/DT
Supreme/NNP
Court/NNP
by/IN
a/DT
dissident/JJ
group/NN
of/IN
claimants/NNS
because/IN
it/PRP
places/VBZ
a/DT
cap/NN
on/IN
the/DT
total/JJ
amount/NN
of/IN
money/NN
available/JJ
to/TO
settle/VB
claims/NNS
./.
It/PRP
also/RB
bars/VBZ
future/JJ
suits/NNS
against/IN
Robins/NNP
company/NN
officials/NNS
,/,
members/NNS
of/IN
the/DT
Robins/NNP
family/NN
and/CC
Robins/NNP
's/POS
former/JJ
insurer/NN
,/,
Aetna/NNP
Life/NNP
&/CC
Casualty/NNP
Co/NNP
./.
The/DT
latter/JJ
provision/NN
is/VBZ
``/``
legally/RB
unprecedented/JJ
,/,
''/''
said/VBD
Alan/NNP
B./NNP
Morrison/NNP
,/,
a/DT
public/JJ
interest/NN
lawyer/NN
in/IN
Washington/NNP
,/,
D.C./NNP
,/,
who/WP
is/VBZ
challenging/VBG
the/DT
plan/NN
on/IN
behalf/NN
of/IN
900/CD
claimants/NNS
./.
More/JJR
than/IN
100,000/CD
claims/NNS
against/IN
Robins/NNP
are/VBP
pending/VBG|JJ
./.
The/DT
company/NN
made/VBD
and/CC
marketed/VBD
the/DT
Dalkon/NNP
Shield/NNP
in/IN
the/DT
early/JJ
1970s/NNS
amid/IN
mounting/VBG
evidence/NN
that/IN
it/PRP
could/MD
cause/VB
serious/JJ
injuries/NNS
./.
Robins/NNP
has/VBZ
been/VBN
in/IN
proceedings/NNS
under/IN
Chapter/NNP
11/CD
of/IN
the/DT
U.S./NNP
Bankruptcy/NNP
Code/NNP
since/IN
August/NNP
1985/CD
;/:
such/JJ
proceedings/NNS
give/VBP
it/PRP
protection/NN
from/IN
creditor/NN
lawsuits/NNS
while/IN
it/PRP
works/VBZ
out/RP
a/DT
plan/NN
for/IN
paying/VBG
its/PRP$
debts/NNS
./.
American/NNP
Home/NNP
Products/NNP
Corp./NNP
wants/VBZ
to/TO
acquire/VB
Robins/NNP
,/,
but/CC
only/RB
if/IN
all/DT
legal/JJ
challenges/NNS
to/TO
the/DT
plan/NN
are/VBP
exhausted/VBN
./.
In/IN
a/DT
brief/NN
filed/VBN
with/IN
the/DT
Supreme/NNP
Court/NNP
last/JJ
week/NN
,/,
Mr./NNP
Pretl/NNP
criticizes/VBZ
the/DT
appeal/NN
for/IN
raising/VBG
``/``
abstract/JJ
''/''
and/CC
``/``
theoretical/JJ
''/''
legal/JJ
issues/NNS
,/,
while/IN
jeopardizing/VBG
the/DT
proposed/JJ
reorganization/NN
and/CC
the/DT
settlement/NN
payments/NNS
to/TO
claimants/NNS
./.
The/DT
Supreme/NNP
Court/NNP
is/VBZ
scheduled/VBN
to/TO
consider/VB
the/DT
case/NN
Nov./NNP
3/CD
and/CC
may/MD
issue/VB
a/DT
decision/NN
as/RB
early/RB
as/IN
Nov./NNP
6/CD
./.
JURY/NN
'S/POS
CRIMINAL/JJ
CONVICTION/NN
under/IN
Superfund/NNP
law/NN
is/VBZ
a/DT
first/JJ
./.
Charles/NNP
A./NNP
Donohoo/NNP
,/,
sole/JJ
proprieter/NN
of/IN
a/DT
Louisville/NNP
,/,
Ky./NNP
,/,
demolition/NN
company/NN
,/,
was/VBD
found/VBN
guilty/JJ
of/IN
violating/VBG
the/DT
Superfund/NNP
law/NN
as/RB
well/RB
as/IN
the/DT
Clean/NNP
Air/NNP
Act/NNP
./.
Criminal/JJ
convictions/NNS
under/IN
the/DT
federal/JJ
Superfund/NNP
law/NN
are/VBP
rare/JJ
,/,
and/CC
the/DT
decision/NN
is/VBZ
the/DT
first/JJ
jury/NN
verdict/NN
in/IN
such/PDT
a/DT
case/NN
./.
Under/IN
Superfund/NNP
,/,
those/DT
who/WP
owned/VBD
,/,
generated/VBD
or/CC
transported/VBD
hazardous/JJ
waste/NN
are/VBP
liable/JJ
for/IN
its/PRP$
cleanup/NN
,/,
regardless/RB
of/IN
whether/IN
their/PRP$
actions/NNS
were/VBD
legal/JJ
at/IN
the/DT
time/NN
./.
Environmental/JJ
lawyers/NNS
say/VBP
virtually/RB
all/DT
of/IN
the/DT
Superfund/NNP
cases/NNS
to/TO
date/NN
have/VBP
involved/VBN
civil/JJ
penalties/NNS
designed/VBN
to/TO
insure/VB
cleanup/NN
of/IN
past/JJ
polluting/VBG
activities/NNS
./.
But/CC
Superfund/NNP
also/RB
contains/VBZ
a/DT
criminal/JJ
provision/NN
concerning/VBG
the/DT
release/NN
of/IN
toxic/JJ
substances/NNS
into/IN
the/DT
environment/NN
./.
In/IN
1986/CD
Congress/NNP
strengthened/VBD
the/DT
penalty/NN
by/IN
making/VBG
it/PRP
a/DT
felony/NN
./.
Mr./NNP
Donohoo/NNP
was/VBD
convicted/VBN
in/IN
Louisville/NNP
late/RB
last/JJ
month/NN
of/IN
violating/VBG
Superfund/NNP
by/IN
failing/VBG
to/TO
report/VB
the/DT
release/NN
of/IN
asbestos/NN
into/IN
the/DT
environment/NN
from/IN
a/DT
building/NN
he/PRP
was/VBD
demolishing/VBG
./.
He/PRP
was/VBD
also/RB
convicted/VBN
of/IN
failing/VBG
to/TO
properly/RB
remove/VB
asbestos/NN
from/IN
the/DT
building/NN
,/,
a/DT
violation/NN
of/IN
the/DT
Clean/NNP
Air/NNP
Act/NNP
./.
The/DT
government/NN
sought/VBD
a/DT
criminal/JJ
penalty/NN
because/IN
``/``
no/DT
cleanup/NN
is/VBZ
possible/JJ
here/RB
./.
Once/RB
{/(
asbestos/NN
the/DT
environment/NN
,/,
it/PRP
can/MD
lodge/VB
anywhere/RB
,/,
''/''
says/VBZ
Richard/NNP
A./NN
Dennis/NNP
,/,
the/DT
assistant/JJ
U.S./NNP
attorney/NN
who/WP
prosecuted/VBD
the/DT
case/NN
./.
Mr./NNP
Donohoo/NNP
is/VBZ
scheduled/VBN
to/TO
be/VB
sentenced/VBN
Dec./NNP
11/CD
./.
His/PRP$
lawyer/NN
could/MD
not/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
Mr./NNP
Donohoo/NNP
faces/NNS
as/RB
much/RB
as/IN
three/CD
years/NNS
in/IN
prison/NN
and/CC
a/DT
$/$
250,000/CD
fine/NN
for/IN
the/DT
Superfund/NNP
conviction/NN
and/CC
as/RB
much/JJ
as/IN
one/CD
year/NN
in/IN
prison/NN
and/CC
a/DT
$/$
100,000/CD
fine/NN
for/IN
the/DT
violation/NN
of/IN
the/DT
Clean/NNP
Air/NNP
Act/NNP
./.
TED/NNP
BUNDY'S/NNP
LAWYERS/NNS
switch/VBP
to/TO
victims/NNS
'/POS
side/NN
in/IN
death-sentence/NN
case/NN
./.
Wilmer/NNP
,/,
Cutler/NNP
&/CC
Pickering/NNP
,/,
the/DT
Washington/NNP
,/,
D.C./NNP
,/,
law/NN
firm/NN
that/WDT
spent/VBD
over/IN
$/$
1/CD
million/CD
fighting/VBG
the/DT
execution/NN
of/IN
mass-murderer/NN
Ted/NNP
Bundy/NNP
--/:
who/WP
eventually/RB
was/VBD
executed/VBN
--/:
has/VBZ
taken/VBN
on/RP
another/DT
death/NN
penalty/NN
case/NN
before/IN
the/DT
Supreme/NNP
Court/NNP
,/,
this/DT
time/NN
on/IN
the/DT
side/NN
of/IN
the/DT
family/NN
of/IN
four/CD
murder/NN
victims/NNS
in/IN
Arkansas/NNP
./.
The/DT
law/NN
firm/NN
has/VBZ
filed/VBN
a/DT
friend-of-the-court/JJ
brief/NN
jointly/RB
with/IN
the/DT
Washington/NNP
Legal/NNP
Foundation/NNP
,/,
a/DT
conservative/JJ
legal/JJ
group/NN
./.
The/DT
key/JJ
issue/NN
in/IN
the/DT
case/NN
,/,
which/WDT
the/DT
law/NN
firm/NN
is/VBZ
handling/VBG
without/IN
a/DT
fee/NN
,/,
or/CC
pro/FW
bono/FW
,/,
is/VBZ
whether/IN
a/DT
person/NN
sentenced/VBN
to/TO
death/NN
can/MD
voluntarily/RB
waive/VB
his/PRP$
rights/NNS
of/IN
appellate/JJ
review/NN
./.
The/DT
murderer/NN
,/,
Ronald/NNP
Gene/NNP
Simmons/NNP
,/,
was/VBD
convicted/VBN
of/IN
killing/VBG
14/CD
people/NNS
./.
Another/DT
murderer/NN
on/IN
death/NN
row/NN
has/VBZ
appealed/VBN
Mr./NNP
Simmons/NNP
's/POS
death/NN
sentence/NN
in/IN
a/DT
``/``
next/JJ
friend/NN
''/''
capacity/NN
./.
Wilmer/NNP
Cutler/NNP
's/POS
brief/NN
argues/VBZ
that/IN
there/EX
is/VBZ
no/DT
mandatory/JJ
appellate/JJ
review/NN
of/IN
capital/NN
sentences/NNS
and/CC
that/IN
the/DT
inmate/NN
who/WP
filed/VBD
the/DT
appeal/NN
lacks/VBZ
proper/JJ
standing/NN
./.
P.J./NNP
Mode/NNP
,/,
Wilmer/NNP
Cutler/NNP
's/POS
managing/NN
partner/NN
,/,
says/VBZ
the/DT
trial/NN
team/NN
that/WDT
represented/VBD
Mr./NNP
Bundy/NNP
was/VBD
asked/VBN
by/IN
the/DT
firm/NN
's/POS
pro/FW
bono/FW
committee/NN
whether/IN
the/DT
new/JJ
case/NN
posed/VBD
a/DT
conflict/NN
and/CC
that/IN
no/DT
objections/NNS
were/VBD
raised/VBN
./.
The/DT
coupling/NN
of/IN
the/DT
law/NN
firm/NN
and/CC
the/DT
Washington/NNP
Legal/NNP
Foundation/NNP
is/VBZ
odd/JJ
also/RB
,/,
because/IN
Wilmer/NNP
Cutler/NNP
was/VBD
one/CD
of/IN
the/DT
firms/NNS
singled/VBN
out/RP
for/IN
criticism/NN
two/CD
years/NNS
ago/RB
by/IN
the/DT
conservative/JJ
legal/JJ
group/NN
for/IN
displaying/VBG
a/DT
liberal/JJ
bias/NN
in/IN
its/PRP$
pro/FW
bono/FW
work/NN
./.
``/``
We/PRP
give/VBP
them/PRP
a/DT
lot/NN
of/IN
credit/NN
for/IN
taking/VBG
this/DT
case/NN
,/,
''/''
says/VBZ
WLF/NNP
's/POS
Alan/NNP
Slobodin/NNP
./.
THE/DT
CASE/NN
OF/IN
THE/DT
FAKE/JJ
DALIS/NNPS
:/:
In/IN
federal/JJ
court/NN
in/IN
Manhattan/NNP
,/,
three/CD
defendants/NNS
pleaded/VBD
guilty/JJ
to/TO
charges/NNS
of/IN
fraud/NN
in/IN
connection/NN
with/IN
the/DT
sale/NN
of/IN
fake/JJ
Salvador/NNP
Dali/NNP
lithographs/NNS
./.
James/NNP
Burke/NNP
and/CC
Larry/NNP
Evans/NNP
,/,
formerly/RB
owners/NNS
of/IN
the/DT
now-defunct/JJ
Barclay/NNP
Gallery/NNP
,/,
and/CC
Prudence/NNP
Clark/NNP
,/,
a/DT
Barclay/NNP
sales/NNS
representative/NN
,/,
were/VBD
charged/VBN
with/IN
conducting/VBG
high-pressure/JJ
telephone/NN
sales/NNS
in/IN
which/WDT
they/PRP
misrepresented/VBD
cheap/JJ
copies/NNS
of/IN
Dali/NNP
artwork/NN
as/IN
signed/JJ
,/,
limited-edition/JJ
lithographs/NNS
./.
The/DT
posters/NNS
were/VBD
sold/VBN
for/IN
$/$
1,300/CD
to/TO
$/$
6,000/CD
,/,
although/IN
the/DT
government/NN
says/VBZ
they/PRP
had/VBD
a/DT
value/NN
of/IN
only/RB
$/$
53/CD
to/TO
$/$
200/CD
apiece/RB
./.
Henry/NNP
Pitman/NNP
,/,
the/DT
assistant/JJ
U.S./NNP
attorney/NN
handling/VBG
the/DT
case/NN
,/,
said/VBD
about/RB
1,000/CD
customers/NNS
were/VBD
defrauded/VBN
and/CC
that/IN
Barclay/NNP
's/POS
total/JJ
proceeds/NNS
from/IN
the/DT
sales/NNS
were/VBD
$/$
3.4/CD
million/CD
./.
Attorneys/NNP
for/IN
Messrs./NNP
Burke/NNP
and/CC
Evans/NNP
and/CC
Ms./NNP
Clarke/NNP
said/VBD
that/IN
although/IN
their/PRP$
clients/NNS
admitted/VBD
to/TO
making/VBG
some/DT
misrepresentations/NNS
in/IN
the/DT
sales/NNS
,/,
they/PRP
had/VBD
believed/VBN
that/IN
the/DT
works/NNS
were/VBD
authorized/VBN
by/IN
Mr./NNP
Dali/NNP
,/,
who/WP
died/VBD
in/IN
January/NNP
./.
The/DT
posters/NNS
were/VBD
printed/VBN
on/IN
paper/NN
pre-signed/VBN
by/IN
Mr./NNP
Dali/NNP
,/,
the/DT
attorneys/NNS
said/VBD
./.
Westamerica/NNP
Bancorp./NNP
said/VBD
Richard/NNP
W./NNP
Decker/NNP
resigned/VBD
as/IN
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
after/IN
only/RB
a/DT
year/NN
on/IN
the/DT
job/NN
because/IN
of/IN
``/``
differences/NNS
''/''
with/IN
the/DT
board/NN
./.
The/DT
banking/NN
company/NN
could/MD
n't/RB
be/VB
reached/VBN
to/TO
comment/VB
beyond/IN
a/DT
written/JJ
announcement/NN
./.
It/PRP
did/VBD
n't/RB
specify/VB
the/DT
nature/NN
of/IN
the/DT
differences/NNS
,/,
saying/VBG
only/RB
that/IN
they/PRP
related/VBD
to/TO
``/``
management/NN
style/NN
''/''
and/CC
``/``
strategic/JJ
objectives/NNS
./.
''/''
Westamerica/NNP
said/VBD
Mr./NNP
Decker/NNP
's/POS
posts/NNS
were/VBD
assumed/VBN
by/IN
David/NNP
Payne/NNP
,/,
Westamerica/NNP
's/POS
chairman/NN
,/,
who/WP
at/IN
34/CD
years/NNS
of/IN
age/NN
becomes/VBZ
one/NN
of/IN
the/DT
youngest/JJS
chief/JJ
executives/NNS
of/IN
a/DT
sizable/JJ
bank/NN
in/IN
the/DT
country/NN
./.
Mr./NNP
Decker/NNP
is/VBZ
about/RB
45/CD
years/NNS
old/JJ
./.
Neither/CC
Mr./NNP
Payne/NNP
nor/CC
Mr./NNP
Decker/NNP
could/MD
be/VB
reached/VBN
to/TO
comment/VB
./.
Westamerica/NN
has/VBZ
about/RB
$/$
1.3/CD
billion/CD
of/IN
assets/NNS
and/CC
is/VBZ
the/DT
largest/JJS
independent/JJ
bank/NN
in/IN
northern/JJ
California/NNP
./.
It/PRP
controls/VBZ
about/RB
35/CD
%/NN
of/IN
the/DT
affluent/JJ
Marin/NNP
County/NNP
market/NN
across/IN
the/DT
Golden/NNP
Gate/NNP
bridge/NN
from/IN
San/NNP
Francisco/NNP
./.
Mr./NNP
Decker/NNP
's/POS
resignation/NN
surprised/VBD
many/JJ
industry/NN
officials/NNS
./.
He/PRP
was/VBD
brought/VBN
to/TO
the/DT
company/NN
in/IN
September/NNP
1988/CD
after/IN
15/CD
years/NNS
at/IN
Los/NNP
Angeles-based/JJ
First/NNP
Interstate/NNP
Bancorp/NNP
./.
The/DT
bank/NN
had/VBD
been/VBN
suffering/VBG
in/IN
late/JJ
1987/CD
from/IN
a/DT
slew/NN
of/IN
bad/JJ
real/JJ
estate/NN
loans/NNS
made/VBN
in/IN
Arizona/NNP
./.
When/WRB
he/PRP
was/VBD
hired/VBN
,/,
Mr./NNP
Payne/NNP
lauded/VBD
Mr./NNP
Decker/NNP
's/POS
``/``
extraordinary/JJ
.../:
skills/NNS
''/''
and/CC
his/PRP$
``/``
outstanding/JJ
reputation/NN
as/IN
one/CD
of/IN
the/DT
West/NNP
's/POS
brightest/JJS
bankers/NNS
./.
''/''
Though/IN
the/DT
bank/NN
is/VBZ
n't/RB
performing/VBG
as/RB
well/RB
as/IN
some/DT
of/IN
its/PRP$
competitors/NNS
in/IN
the/DT
lucrative/JJ
California/NNP
market/NN
,/,
its/PRP$
condition/NN
has/VBZ
improved/VBN
since/IN
Mr./NNP
Decker/NNP
took/VBD
over/RP
./.
For/IN
the/DT
six/CD
months/NNS
ended/VBD
June/NNP
30/CD
,/,
it/PRP
earned/VBD
$/$
3.1/CD
million/CD
,/,
or/CC
61/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
net/JJ
income/NN
of/IN
$/$
2.4/CD
million/CD
,/,
or/CC
41/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Its/PRP$
stock/NN
also/RB
has/VBZ
risen/VBN
lately/RB
,/,
at/IN
least/JJS
partly/RB
because/IN
it/PRP
is/VBZ
considered/VBN
a/DT
possible/JJ
takeover/NN
candidate/NN
./.
Interstate/JJ
banking/NN
is/VBZ
scheduled/VBN
to/TO
begin/VB
in/IN
California/NNP
in/IN
1991/CD
,/,
and/CC
larger/JJR
California/NNP
banks/NNS
,/,
such/JJ
as/IN
Wells/NNP
Fargo/NNP
&/CC
Co./NNP
,/,
have/VBP
been/VBN
paying/VBG
fat/JJ
premiums/NNS
to/TO
buy/VB
smaller/JJR
banks/NNS
to/TO
control/VB
markets/NNS
before/IN
any/DT
out-of-state/JJ
banks/NNS
enter/VBP
the/DT
fray/NN
./.
In/IN
American/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
Westamerica/NNP
closed/VBD
at/IN
$/$
22.25/CD
a/DT
share/NN
,/,
down/RB
75/CD
cents/NNS
./.
Varian/NNP
Associates/NNP
Inc./NNP
,/,
Palo/NNP
Alto/NNP
,/,
Calif./NNP
,/,
reported/VBD
fiscal/JJ
fourth-quarter/JJ
profit/NN
plunged/VBD
more/RBR
than/IN
95/CD
%/NN
to/TO
$/$
1/CD
million/CD
,/,
or/CC
five/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
24.2/CD
million/CD
,/,
or/CC
$/$
1.10/CD
a/DT
share/NN
,/,
in/IN
the/DT
year-earlier/JJ
quarter/NN
./.
The/DT
diversified/JJ
electronics/NN
company/NN
blamed/VBD
the/DT
decline/NN
in/IN
the/DT
quarter/NN
ended/VBN
Sept./NNP
29/CD
,/,
on/IN
previously/RB
reported/VBN
operating/NN
problems/NNS
in/IN
its/PRP$
Electron/NNP
Devices/NNP
&/CC
Systems/NNP
Group/NNP
./.
For/IN
the/DT
full/JJ
fiscal/JJ
year/NN
,/,
Varian/NNP
posted/VBD
a/DT
13/CD
%/NN
profit/NN
rise/NN
to/TO
$/$
31.5/CD
million/CD
,/,
or/CC
$/$
1.53/CD
a/DT
share/NN
,/,
up/RB
from/IN
$/$
27.8/CD
million/CD
,/,
or/CC
$/$
1.27/CD
a/DT
share/NN
,/,
last/JJ
year/NN
./.
Sales/NNS
for/IN
the/DT
year/NN
rose/VBD
almost/RB
15/CD
%/NN
to/TO
$/$
1.34/CD
billion/CD
from/IN
$/$
1.17/CD
billion/CD
last/JJ
year/NN
./.
A/DT
profit/NN
last/JJ
year/NN
in/IN
both/CC
the/DT
quarter/NN
and/CC
year/NN
included/VBD
a/DT
net/JJ
gain/NN
of/IN
$/$
9.6/CD
million/CD
,/,
or/CC
44/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
the/DT
sale/NN
of/IN
a/DT
division/NN
./.
Additionally/RB
,/,
the/DT
full-year/JJ
profit/NN
last/JJ
year/NN
reflected/VBD
an/DT
after-tax/JJ
restructuring/NN
charge/NN
of/IN
$/$
22.8/CD
million/CD
,/,
or/CC
$/$
1.04/CD
a/DT
share/NN
./.
Shares/NNP
of/IN
Varian/NNP
,/,
which/WDT
last/JJ
month/NN
warned/VBD
there/EX
would/MD
be/VB
a/DT
fourth-quarter/JJ
plunge/NN
,/,
closed/VBD
at/IN
$/$
22.75/CD
,/,
down/RB
62.5/CD
cents/NNS
in/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
Sales/NNS
rose/VBD
18/CD
%/NN
in/IN
the/DT
fiscal/JJ
fourth/JJ
quarter/NN
to/TO
$/$
364.1/CD
million/CD
from/IN
$/$
307.9/CD
million/CD
on/IN
the/DT
strength/NN
in/IN
semiconductors/NNS
and/CC
other/JJ
products/NNS
./.
In/IN
a/DT
last-ditch/JJ
effort/NN
to/TO
keep/VB
its/PRP$
sales/NNS
force/NN
and/CC
customer/NN
base/NN
,/,
Integrated/NNP
Resources/NNP
Inc./NNP
said/VBD
it/PRP
agreed/VBD
in/IN
principle/NN
to/TO
transfer/VB
ownership/NN
of/IN
its/PRP$
broker-dealer/NN|JJ
subsidiary/NN
to/TO
two/CD
of/IN
its/PRP$
top/JJ
executives/NNS
./.
The/DT
financial-services/NNS
firm/NN
,/,
struggling/VBG
since/IN
summer/NN
to/TO
avoid/VB
a/DT
bankruptcy-law/NN
filing/NN
after/IN
missing/VBG
interest/NN
payments/NNS
on/IN
about/RB
$/$
1/CD
billion/CD
of/IN
debt/NN
,/,
will/MD
retain/VB
the/DT
right/NN
to/TO
regain/VB
the/DT
subsidiary/NN
./.
It/PRP
said/VBD
it/PRP
will/MD
exercise/VB
that/DT
right/NN
only/RB
if/IN
it/PRP
sells/VBZ
substantially/RB
all/DT
of/IN
its/PRP$
other/JJ
core/JJ
businesses/NNS
./.
It/PRP
also/RB
can/MD
sell/VB
the/DT
right/NN
to/TO
regain/VB
the/DT
subsidiary/NN
to/TO
another/DT
party/NN
./.
Also/RB
,/,
the/DT
broker-dealer/NN|JJ
subsidiary/NN
,/,
Integrated/NNP
Resources/NNP
Equity/NNP
Corp./NNP
,/,
was/VBD
renamed/VBN
Royal/NNP
Alliance/NNP
Associates/NNP
Inc/NNP
./.
Because/IN
of/IN
Integrated/NNP
's/POS
widely/RB
reported/VBN
troubles/NNS
,/,
the/DT
unit/NN
's/POS
representatives/NNS
had/VBD
been/VBN
requesting/VBG
a/DT
name/NN
change/NN
./.
Royal/NNP
Alliance/NNP
,/,
to/TO
which/WDT
the/DT
3,900/CD
representatives/NNS
'/POS
licenses/NNS
will/MD
be/VB
transferred/VBN
,/,
is/VBZ
a/DT
shell/NN
company/NN
Integrated/NNP
owns/VBZ
./.
In/IN
the/DT
transaction/NN
,/,
Integrated/NNP
will/MD
transfer/VB
100/CD
%/NN
ownership/NN
of/IN
the/DT
subsidiary/NN
to/TO
Gerard/NNP
M./NNP
Lavin/NNP
,/,
executive/JJ
vice/NN
president/NN
of/IN
Integrated/NNP
and/CC
head/NN
of/IN
back-office/JJ
operations/NNS
at/IN
the/DT
subsidiary/NN
,/,
and/CC
Gary/NNP
W./NNP
Krat/NNP
,/,
executive/JJ
vice/NN
president/NN
of/IN
the/DT
parent/NN
and/CC
president/NN
of/IN
the/DT
subsidiary/NN
./.
Integrated/NNP
will/MD
pump/VB
$/$
3.5/CD
million/CD
to/TO
$/$
4/CD
million/CD
into/IN
Royal/NNP
Alliance/NNP
as/IN
initial/JJ
funding/NN
./.
In/IN
an/DT
interview/NN
,/,
Mr./NNP
Krat/NNP
said/VBD
that/IN
based/VBN
on/IN
criteria/NNS
yet/RB
to/TO
be/VB
determined/VBN
,/,
he/PRP
expects/VBZ
to/TO
distribute/VB
49/CD
%/NN
of/IN
Royal/NNP
Alliance/NNP
to/TO
the/DT
representatives/NNS
,/,
who/WP
sell/VBP
Integrated/NNP
's/POS
insurance/NN
and/CC
mutual-fund/NN
products/NNS
./.
If/IN
Integrated/NNP
regains/VBZ
Royal/NNP
Alliance/NNP
,/,
the/DT
representatives/NNS
will/MD
retain/VB
their/PRP$
49/CD
%/NN
ownership/NN
./.
Mr./NNP
Krat/NNP
indicated/VBD
that/IN
completion/NN
of/IN
the/DT
transaction/NN
could/MD
take/VB
several/JJ
weeks/NNS
,/,
and/CC
it/PRP
was/VBD
n't/RB
immediately/RB
clear/VB
what/WP
would/MD
happen/VB
to/TO
the/DT
broker-dealer/NN|JJ
subsidiary/NN
if/IN
Integrated/NNP
files/NNS
for/IN
bankruptcy-law/NN
protection/NN
in/IN
the/DT
meantime/NN
./.
The/DT
subsidiary/NN
is/VBZ
n't/RB
expected/VBN
to/TO
be/VB
profitable/JJ
for/IN
at/IN
least/JJS
one/CD
year/NN
./.
If/IN
Integrated/NNP
regains/VBZ
the/DT
unit/NN
,/,
it/PRP
would/MD
receive/VB
any/DT
profit/NN
the/DT
unit/NN
reports/VBZ
,/,
even/RB
while/IN
the/DT
unit/NN
is/VBZ
independent/JJ
./.
If/IN
the/DT
deal/NN
closes/VBZ
,/,
the/DT
two/CD
officers/NNS
will/MD
draw/VB
salaries/NNS
from/IN
the/DT
independent/JJ
operation/NN
,/,
not/RB
from/IN
Integrated/NNP
./.
Many/JJ
aspects/NNS
of/IN
the/DT
agreement/NN
were/VBD
worked/VBN
out/RP
Wednesday/NNP
in/IN
Chicago/NNP
,/,
when/WRB
Integrated/NNP
senior/JJ
managers/NNS
met/VBD
with/IN
about/RB
150/CD
representatives/NNS
./.
``/``
I/PRP
think/VBP
it/PRP
was/VBD
something/NN
that/IN
we/PRP
and/CC
they/PRP
thought/VBD
was/VBD
constructive/JJ
,/,
''/''
said/VBD
Stephen/NNP
D./NNP
Weinroth/NNP
,/,
chairman/NN
and/CC
co-chief/JJ
executive/JJ
officer/NN
of/IN
Integrated/NNP
./.
Integrated/NNP
made/VBD
its/PRP$
announcement/NN
after/IN
the/DT
market/NN
closed/VBD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
Composite/NNP
trading/NN
,/,
Integrated/NNP
shares/NNS
closed/VBD
at/IN
$/$
1.125/CD
,/,
up/RB
12.5/CD
cents/NNS
./.
The/DT
dollar/NN
weakened/VBD
in/IN
indecisive/JJ
trading/NN
as/IN
foreign-exchange/NN
dealers/NNS
awaited/VBD
fresh/JJ
economic/JJ
news/NN
that/IN
they/PRP
hope/VBP
will/MD
jolt/VB
the/DT
U.S./NNP
unit/NN
out/IN
of/IN
its/PRP$
narrow/JJ
ranges/NNS
./.
The/DT
Canadian/JJ
dollar/NN
climbed/VBD
to/TO
its/PRP$
highest/JJS
level/NN
against/IN
the/DT
U.S./NNP
dollar/NN
since/IN
late/JJ
August/NNP
,/,
prompting/VBG
the/DT
Bank/NNP
of/IN
Canada/NNP
to/TO
sell/VB
the/DT
Canadian/JJ
currency/NN
on/IN
the/DT
market/NN
./.
Traders/NNS
say/VBP
that/IN
after/IN
a/DT
week/NN
of/IN
nervously/RB
tracking/VBG
every/DT
development/NN
on/IN
Wall/NNP
Street/NNP
,/,
the/DT
foreign-exchange/NN
market/NN
has/VBZ
settled/VBN
back/RP
to/TO
catch/VB
its/PRP$
breath/NN
ahead/RB
of/IN
new/JJ
U.S./NNP
economic/JJ
data/NNS
./.
They/PRP
noted/VBD
,/,
however/RB
,/,
that/IN
a/DT
26-point/JJ
drop/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
gave/VBD
the/DT
dollar/NN
a/DT
sharp/JJ
nudge/NN
downward/RB
late/RB
in/IN
the/DT
day/NN
./.
In/IN
late/JJ
New/NNP
York/NNP
trading/NN
yesterday/NN
,/,
the/DT
dollar/NN
was/VBD
quoted/VBN
at/IN
1.8470/CD
marks/NNS
,/,
down/RB
from/IN
1.8578/CD
marks/NNS
late/RB
Friday/NNP
,/,
and/CC
at/IN
141.90/CD
yen/NN
,/,
down/RB
from/IN
142.43/CD
yen/NN
late/RB
Friday/NNP
./.
Sterling/NN
was/VBD
quoted/VBN
at/IN
$/$
1.6030/CD
,/,
up/RB
from/IN
$/$
1.5885/CD
late/RB
Friday/NNP
./.
In/IN
Tokyo/NNP
Tuesday/NNP
,/,
the/DT
U.S./NNP
currency/NN
opened/VBD
for/IN
trading/VBG
at/IN
141.80/CD
yen/NN
,/,
down/RB
from/IN
Monday/NNP
's/POS
Tokyo/NNP
close/NN
of/IN
142.40/CD
yen/NN
./.
The/DT
market/NN
's/POS
attention/NN
is/VBZ
especially/RB
focused/VBN
on/IN
a/DT
preliminary/JJ
report/NN
on/IN
the/DT
U.S./NNP
third-quarter/JJ
gross/JJ
national/JJ
product/NN
,/,
due/JJ
out/RB
Thursday/NNP
,/,
which/WDT
could/MD
show/VB
the/DT
economy/NN
is/VBZ
continuing/VBG
to/TO
expand/VB
at/IN
a/DT
relatively/RB
brisk/JJ
pace/NN
./.
The/DT
consensus/NN
view/NN
on/IN
real/JJ
GNP/NNP
,/,
the/DT
total/JJ
value/NN
of/IN
the/DT
U.S./NNP
output/NN
of/IN
goods/NNS
and/CC
services/NNS
adjusted/VBN
for/IN
inflation/NN
,/,
calls/VBZ
for/IN
a/DT
2.3/CD
%/NN
gain/NN
on/IN
an/DT
annual/JJ
basis/NN
,/,
slowing/VBG
somewhat/RB
from/IN
the/DT
second/JJ
quarter/NN
's/POS
2.5/CD
%/NN
,/,
but/CC
still/RB
fairly/RB
strong/JJ
./.
Few/JJ
market/NN
participants/NNS
expect/VBP
the/DT
U.S./NNP
unit/NN
to/TO
rally/VB
sharply/RB
on/IN
the/DT
news/NN
,/,
if/IN
it/PRP
turns/VBZ
out/RP
as/RB
expected/VBN
./.
Many/JJ
contend/VBP
that/IN
the/DT
report/NN
may/MD
overstate/VB
the/DT
economy/NN
's/POS
health/NN
and/CC
predict/VB
the/DT
third-quarter/JJ
figures/NNS
may/MD
be/VB
the/DT
last/JJ
vigorous/JJ
statistics/NNS
for/IN
some/DT
time/NN
to/TO
come/VB
./.
``/``
Everyone/NN
is/VBZ
waiting/VBG
for/IN
GNP/NNP
,/,
''/''
says/VBZ
Walter/NNP
Simon/NNP
,/,
an/DT
assistant/JJ
treasurer/NN
with/IN
Bank/NNP
Julius/NNP
Baer/NNP
&/CC
Co/NNP
./.
``/``
Yet/CC
even/RB
a/DT
relatively/RB
strong/JJ
number/NN
--/:
2.8/CD
%/NN
to/TO
2.9/CD
%/NN
--/:
wo/MD
n't/RB
alter/VB
the/DT
market/NN
's/POS
view/NN
that/IN
the/DT
economy/NN
is/VBZ
softening/VBG
./.
''/''
Hubert/NNP
Pedroli/NNP
,/,
managing/NN
director/NN
of/IN
foreign/JJ
exchange/NN
at/IN
Credit/NNP
Suisse/NNP
in/IN
New/NNP
York/NNP
,/,
adds/VBZ
,/,
``/``
The/DT
market/NN
sees/VBZ
this/DT
as/IN
the/DT
last/JJ
piece/NN
of/IN
good/JJ
news/NN
./.
''/''
Mr./NNP
Pedroli/NNP
notes/VBZ
that/IN
the/DT
GNP/NNP
deflator/NN
,/,
a/DT
measure/NN
of/IN
inflation/NN
,/,
is/VBZ
expected/VBN
to/TO
slow/VB
,/,
which/WDT
would/MD
give/VB
the/DT
Federal/NNP
Reserve/NNP
more/JJR
room/NN
to/TO
ease/VB
key/JJ
U.S./NNP
rates/NNS
./.
Analysts/NNS
predict/VBP
a/DT
3.5/CD
%/NN
rise/NN
in/IN
the/DT
deflator/NN
,/,
after/IN
climbing/VBG
4.6/CD
%/NN
in/IN
the/DT
second/JJ
quarter/NN
./.
They/PRP
note/VBP
that/IN
when/WRB
an/DT
unexpectedly/RB
sharp/JJ
widening/NN
in/IN
the/DT
U.S./NNP
trade/NN
gap/NN
in/IN
August/NNP
was/VBD
reported/VBN
earlier/RBR
this/DT
month/NN
,/,
hopes/NNS
for/IN
a/DT
sustained/JJ
narrowing/NN
of/IN
the/DT
trade/NN
deficit/NN
were/VBD
dashed/VBN
and/CC
sentiment/NN
gripped/VBD
the/DT
market/NN
that/IN
the/DT
U.S./NNP
economy/NN
was/VBD
losing/VBG
its/PRP$
momentum/NN
./.
A/DT
190-point/JJ
plunge/NN
in/IN
U.S./NNP
stock/NN
shares/NNS
compounded/VBD
the/DT
view/NN
,/,
they/PRP
say/VBP
./.
``/``
Everyone/NN
is/VBZ
extremely/RB
convinced/JJ
the/DT
economy/NN
is/VBZ
slowing/VBG
,/,
''/''
says/VBZ
one/CD
senior/JJ
New/NNP
York/NNP
dealer/NN
./.
``/``
If/IN
we/PRP
're/VBP
not/RB
headed/VBN
for/IN
a/DT
recession/NN
,/,
we/PRP
're/VBP
certainly/RB
headed/VBN
for/IN
a/DT
major/JJ
slowdown/NN
./.
''/''
While/IN
the/DT
market/NN
expects/VBZ
little/JJ
reaction/NN
from/IN
news/NN
of/IN
U.S./NNP
durable/JJ
goods/NNS
orders/NNS
,/,
scheduled/VBN
for/IN
release/NN
today/NN
,/,
participants/NNS
note/VBP
that/IN
the/DT
figures/NNS
will/MD
probably/RB
serve/VB
to/TO
reinforce/VB
this/DT
bearish/JJ
sentiment/NN
./.
U.S./NNP
durable/JJ
goods/NNS
orders/NNS
are/VBP
expected/VBN
to/TO
show/VB
a/DT
decline/NN
of/IN
1.2/CD
%/NN
in/IN
September/NNP
,/,
according/VBG
to/TO
economists/NNS
./.
The/DT
anticipated/JJ
drop/NN
follows/VBZ
a/DT
3.9/CD
%/NN
rise/NN
in/IN
August/NNP
./.
Traders/NNS
,/,
however/RB
,/,
are/VBP
quick/JJ
to/TO
point/VB
out/RP
that/IN
while/IN
there/EX
is/VBZ
little/JJ
enthusiasm/NN
for/IN
buying/VBG
dollars/NNS
,/,
the/DT
U.S./NNP
unit/NN
has/VBZ
found/VBN
a/DT
``/``
natural/JJ
bottom/NN
''/''
at/IN
about/RB
1.85/CD
marks/NNS
and/CC
140/CD
yen/NN
./.
Its/PRP$
resilience/NN
around/IN
these/DT
levels/NNS
is/VBZ
pegged/VBN
to/TO
persistent/JJ
investor/NN
demand/NN
for/IN
the/DT
greenback/NN
,/,
especially/RB
in/IN
Japan/NNP
./.
On/IN
the/DT
Commodity/NNP
Exchange/NNP
in/IN
New/NNP
York/NNP
,/,
gold/NN
for/IN
current/JJ
delivery/NN
settled/VBD
at/IN
$/$
367/CD
an/DT
ounce/NN
,/,
down/RB
30/CD
cents/NNS
./.
Estimated/JJ
volume/NN
was/VBD
a/DT
very/RB
light/JJ
one/CD
million/CD
ounces/NNS
./.
In/IN
early/RB
trading/NN
in/IN
Hong/NNP
Kong/NNP
Tuesday/NNP
,/,
gold/NN
was/VBD
quoted/VBN
at/IN
$/$
366.79/CD
an/DT
ounce/NN
./.
Liz/NNP
Claiborne/NNP
Inc./NNP
,/,
New/NNP
York/NNP
,/,
said/VBD
its/PRP$
third-quarter/JJ
net/JJ
income/NN
jumped/VBD
62/CD
%/NN
,/,
citing/VBG
continued/JJ
strength/NN
in/IN
apparel/NN
sales/NNS
and/CC
the/DT
start/NN
of/IN
shipments/NNS
of/IN
its/PRP$
new/JJ
product/NN
lines/NNS
:/:
a/DT
men/NNS
's/POS
fragrance/NN
,/,
large-size/JJ
women/NNS
's/POS
apparel/NN
and/CC
casual/JJ
knitwear/NN
./.
The/DT
big/JJ
apparel/NN
maker/NN
and/CC
retailer/NN
said/VBD
that/IN
its/PRP$
net/JJ
income/NN
in/IN
the/DT
latest/JJS
quarter/NN
increased/VBD
to/TO
$/$
51.1/CD
million/CD
,/,
or/CC
58/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
31.7/CD
million/CD
,/,
or/CC
36/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
in/IN
the/DT
quarter/NN
gained/VBD
29/CD
%/NN
to/TO
$/$
410.4/CD
million/CD
from/IN
$/$
317.7/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
Claiborne/NNP
shares/NNS
closed/VBD
yesterday/NN
at/IN
$/$
25.125/CD
,/,
up/RB
50/CD
cents/NNS
,/,
in/IN
national/JJ
over-the-counter/JJ
trading/NN
./.
Claiborne/NNP
's/POS
directors/NNS
also/RB
declared/VBD
its/PRP$
regular/JJ
cash/NN
dividend/NN
payment/NN
of/IN
five/CD
cents/NNS
a/DT
share/NN
payable/JJ
on/IN
Dec./NNP
5/CD
to/TO
shareholders/NNS
of/IN
record/NN
at/IN
the/DT
close/NN
of/IN
business/NN
on/IN
Nov./NNP
13/CD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
net/JJ
income/NN
rose/VBD
48/CD
%/NN
to/TO
$/$
124.2/CD
million/CD
,/,
or/CC
$/$
1.41/CD
a/DT
share/NN
,/,
from/IN
$/$
83.8/CD
million/CD
,/,
or/CC
96/CD
cents/NNS
a/DT
share/NN
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
gained/VBD
16/CD
%/NN
to/TO
$/$
1.03/CD
billion/CD
from/IN
$/$
894/CD
million/CD
./.
Tokyo/NNP
stocks/NNS
closed/VBD
firmer/JJR
Monday/NNP
,/,
with/IN
the/DT
Nikkei/NNP
index/NN
making/VBG
its/PRP$
fifth/JJ
consecutive/JJ
daily/JJ
gain/NN
./.
Stocks/NNS
also/RB
rose/VBD
in/IN
London/NNP
,/,
while/IN
the/DT
Frankfurt/NNP
market/NN
was/VBD
mixed/JJ
./.
In/IN
Tokyo/NNP
,/,
the/DT
Nikkei/NNP
index/NN
added/VBD
99.14/CD
to/TO
35585.52/CD
./.
The/DT
index/NN
moved/VBN
above/IN
35670/CD
at/IN
midmorning/NN
,/,
nearly/RB
reaching/VBG
the/DT
record/NN
of/IN
35689.98/CD
set/VBN
Sept./NNP
28/CD
./.
But/CC
the/DT
market/NN
lost/VBD
part/NN
of/IN
the/DT
early/JJ
gains/NNS
on/IN
index-linked/JJ
investment/NN
trust/NN
fund/NN
selling/NN
./.
In/IN
early/RB
trading/NN
in/IN
Tokyo/NNP
Tuesday/NNP
,/,
the/DT
Nikkei/NNP
index/NN
rose/VBD
1.08/CD
points/NNS
to/TO
35586.60/CD
./.
On/IN
Monday/NNP
,/,
traders/NNS
noted/VBD
that/IN
some/DT
investors/NNS
took/VBD
profits/NNS
against/IN
the/DT
backdrop/NN
of/IN
the/DT
Nikkei/NNP
's/POS
fast-paced/JJ
recovery/NN
following/VBG
its/PRP$
plunge/NN
last/JJ
Monday/NNP
in/IN
reaction/NN
to/TO
the/DT
Oct./NNP
13/CD
drop/NN
in/IN
New/NNP
York/NNP
stock/NN
prices/NNS
./.
But/CC
overall/JJ
buying/NN
interest/NN
remained/VBD
strong/JJ
through/IN
Monday/NNP
,/,
with/IN
many/JJ
observers/NNS
saying/VBG
they/PRP
expect/VBP
the/DT
Nikkei/NNP
to/TO
continue/VB
with/IN
moderate/JJ
gains/NNS
this/DT
week/NN
./.
Turnover/NN
remained/VBD
relatively/RB
small/JJ
./.
Volume/NN
on/IN
the/DT
first/JJ
section/NN
was/VBD
estimated/VBN
at/IN
600/CD
million/CD
shares/NNS
,/,
down/RB
from/IN
1.03/CD
billion/CD
shares/NNS
Friday/NNP
./.
The/DT
Tokyo/NNP
stock/NN
price/NN
index/NN
of/IN
first/JJ
section/NN
issues/NNS
was/VBD
up/RB
7.81/CD
at/IN
2687.53/CD
./.
Relatively/RB
stable/JJ
foreign/JJ
currency/NN
dealings/NNS
Monday/NNP
were/VBD
viewed/VBN
favorably/RB
by/IN
market/NN
players/NNS
,/,
traders/NNS
said/VBD
./.
But/CC
institutional/JJ
investors/NNS
may/MD
wait/VB
a/DT
little/RB
longer/RBR
to/TO
appraise/VB
the/DT
direction/NN
of/IN
the/DT
U.S./NNP
monetary/JJ
policy/NN
and/CC
the/DT
dollar/NN
,/,
traders/NNS
said/VBD
./.
Hiroyuki/NNP
Wada/NNP
,/,
general/JJ
manager/NN
of/IN
the/DT
stock/NN
department/NN
at/IN
Okasan/NNP
Securities/NNP
,/,
said/VBD
Monday/NNP
's/POS
trading/NN
was/VBD
``/``
unfocused/JJ
./.
''/''
He/PRP
said/VBD
investors/NNS
were/VBD
picking/VBG
individual/JJ
stocks/NNS
based/VBN
on/IN
specific/JJ
incentives/NNS
and/CC
the/DT
likelihood/NN
of/IN
a/DT
wider/JJR
price/NN
increase/NN
over/IN
the/DT
short/JJ
term/NN
./.
The/DT
selective/JJ
approach/NN
blurred/VBD
themes/NNS
such/JJ
as/IN
domestic-demand/JJ
issues/NNS
,/,
large-capitalization/JJ
issues/NNS
or/CC
high-technology/NN
shares/NNS
,/,
which/WDT
had/VBD
been/VBN
providing/VBG
at/IN
least/JJS
some/DT
trading/NN
direction/NN
over/IN
the/DT
past/JJ
few/JJ
weeks/NNS
,/,
Mr./NNP
Wada/NNP
said/VBD
./.
Investors/NNS
took/VBD
profits/NNS
on/IN
major/JJ
construction/NN
shares/NNS
,/,
which/WDT
advanced/VBD
last/JJ
week/NN
,/,
shifting/VBG
their/PRP$
attention/NN
to/TO
some/DT
midsize/JJ
companies/NNS
such/JJ
as/IN
Aoki/NNP
Corp./NNP
,/,
Tobishima/NNP
and/CC
Maeda/NNP
./.
Aoki/NNP
gained/VBD
60/CD
yen/NN
to/TO
1,480/CD
yen/NN
$/$
10.40/CD
Some/DT
pharmaceutical/JJ
shares/NNS
were/VBD
popular/JJ
on/IN
rumors/NNS
related/VBN
to/TO
new/JJ
products/NNS
to/TO
be/VB
introduced/VBN
at/IN
a/DT
cancer/NN
conference/NN
that/WDT
opened/VBD
in/IN
Nagoya/NNP
./.
Teijin/NNP
was/VBD
up/RB
15/CD
at/IN
936/CD
,/,
and/CC
Kyowa/NNP
Hakko/NNP
gained/VBD
30/CD
to/TO
1,770/CD
./.
Mochida/NNP
advanced/VBD
40/CD
to/TO
4,440/CD
./.
Fujisawa/NNP
continued/VBD
to/TO
attract/VB
investors/NNS
because/IN
of/IN
strong/JJ
earning/NN
prospects/NNS
stemming/VBG
from/IN
a/DT
new/JJ
immune/JJ
control/NN
agent/NN
./.
Fujisawa/NNP
gained/VBD
50/CD
to/TO
2,060/CD
./.
Kikkoman/NNP
was/VBD
up/RB
30/CD
to/TO
1,600/CD
,/,
receiving/VBG
investor/NN
interest/NN
for/IN
its/PRP$
land/NN
property/NN
holdings/NNS
near/IN
Tokyo/NNP
,/,
a/DT
trader/NN
said/VBD
./.
London/NNP
prices/NNS
closed/VBD
modestly/RB
higher/JJR
in/IN
the/DT
year/NN
's/POS
thinnest/JJS
turnover/NN
,/,
a/DT
condition/NN
that/WDT
underscored/VBD
a/DT
lack/NN
of/IN
conviction/NN
ahead/RB
of/IN
a/DT
U.K./NNP
balance/NN
of/IN
payments/NNS
report/NN
Tuesday/NNP
./.
Limited/JJ
volume/NN
ahead/RB
of/IN
the/DT
September/NNP
trade/NN
data/NNS
showed/VBD
the/DT
market/NN
is/VBZ
nervous/JJ
,/,
but/CC
dealers/NNS
added/VBD
that/IN
the/DT
day/NN
's/POS
modest/JJ
gains/NNS
also/RB
signaled/VBD
some/DT
support/NN
for/IN
London/NNP
equities/NNS
./.
They/PRP
pegged/VBD
the/DT
support/NN
largely/RB
to/TO
anticipation/NN
that/IN
Britain/NNP
's/POS
current/JJ
account/NN
imbalance/NN
ca/MD
n't/RB
be/VB
much/RB
worse/JJR
than/IN
the/DT
near/JJ
record/JJ
deficits/NNS
seen/VBN
in/IN
July/NNP
and/CC
August/NNP
./.
``/``
It/PRP
's/VBZ
a/DT
case/NN
of/IN
the/DT
market/NN
being/VBG
too/RB
high/JJ
to/TO
buy/VB
and/CC
too/RB
afraid/JJ
to/TO
sell/VB
,/,
''/''
a/DT
senior/JJ
dealer/NN
with/IN
Kleinwort/NNP
Benson/NNP
Securities/NNP
said/VBD
./.
``/``
It/PRP
's/VBZ
better/JJR
to/TO
wait/VB
./.
''/''
The/DT
Financial/NNP
Times/NNP
100-share/JJ
index/NN
finished/VBD
10.6/CD
points/NNS
higher/JJR
at/IN
2189.7/CD
./.
The/DT
30-share/JJ
index/NN
closed/VBD
11.6/CD
points/NNS
higher/JJR
at/IN
1772.6/CD
./.
Volume/NN
was/VBD
276.8/CD
million/CD
shares/NNS
,/,
beneath/IN
the/DT
year/NN
's/POS
previous/JJ
low/JJ
of/IN
280.5/CD
million/CD
shares/NNS
Sept./NNP
25/CD
,/,
the/DT
session/NN
before/IN
the/DT
August/NNP
trade/NN
figures/NNS
were/VBD
released/VBN
./.
Analysts/NNS
'/POS
expectations/NNS
suggest/VBP
a/DT
September/NNP
current/JJ
account/NN
deficit/NN
of/IN
#/#
1.6/CD
billion/CD
$/$
2.54/CD
billion/CD
August/NNP
's/POS
#/#
2.0/CD
billion/CD
deficit/NN
./.
Dealers/NNS
,/,
however/RB
,/,
said/VBD
forecasts/NNS
are/VBP
broadly/RB
divergent/JJ
with/IN
estimates/NNS
ranging/VBG
between/IN
#/#
1/CD
billion/CD
and/CC
#/#
2/CD
billion/CD
./.
``/``
The/DT
range/NN
of/IN
expectations/NNS
is/VBZ
so/RB
broad/JJ
,/,
''/''
a/DT
dealer/NN
at/IN
another/DT
major/JJ
U.K./NNP
brokerage/NN
firm/NN
said/VBD
,/,
``/``
the/DT
deficit/NN
may/MD
have/VB
to/TO
be/VB
nearer/IN
or/CC
above/IN
#/#
2/CD
billion/CD
for/IN
it/PRP
to/TO
have/VB
any/DT
impact/NN
on/IN
the/DT
market/NN
./.
''/''
Lucas/NNP
Industries/NNP
,/,
a/DT
British/JJ
automotive/JJ
and/CC
aerospace/JJ
concern/NN
,/,
rose/VBD
13/CD
pence/NNS
to/TO
614/CD
pence/NNS
after/IN
it/PRP
said/VBD
its/PRP$
pretax/JJ
profit/NN
for/IN
the/DT
year/NN
rose/VBD
28/CD
%/NN
./.
Share/NN
prices/NNS
on/IN
the/DT
Frankfurt/NNP
stock/NN
exchange/NN
closed/VBD
narrowly/RB
mixed/JJ
in/IN
quiet/JJ
dealings/NNS
after/IN
recovering/VBG
most/JJS
of/IN
their/PRP$
early/JJ
losses/NNS
./.
The/DT
DAX/NNP
index/NN
eased/VBD
0.99/CD
point/NN
to/TO
end/VB
at/IN
1523.22/CD
after/IN
falling/VBG
5.5/CD
points/NNS
early/RB
in/IN
the/DT
session/NN
./.
Brokers/NNS
said/VBD
the/DT
declines/NNS
early/RB
in/IN
the/DT
day/NN
were/VBD
partly/RB
caused/VBN
by/IN
losses/NNS
of/IN
the/DT
ruling/JJ
Christian-Democratic/NNP
Union/NNP
in/IN
communal/JJ
elections/NNS
in/IN
the/DT
state/NN
of/IN
Baden-Wuerttemberg/NNP
./.
The/DT
start/NN
of/IN
a/DT
weeklong/JJ
conference/NN
by/IN
the/DT
IG/NNP
Metall/NNP
metal/NN
worker/NN
union/NN
in/IN
Berlin/NNP
is/VBZ
drawing/VBG
attention/NN
to/TO
the/DT
impending/JJ
wage/NN
negotiations/NNS
,/,
which/WDT
could/MD
boost/VB
companies/NNS
'/POS
personnel/NNS
costs/VBZ
next/JJ
year/NN
,/,
they/PRP
said/VBD
./.
But/CC
there/EX
was/VBD
little/JJ
selling/NN
pressure/NN
,/,
and/CC
even/RB
small/JJ
orders/NNS
at/IN
the/DT
lower/JJR
levels/NNS
sufficed/VBD
to/TO
bring/VB
the/DT
market/NN
back/RB
to/TO
Friday/NNP
's/POS
opening/NN
levels/NNS
./.
Traders/NNS
said/VBD
the/DT
thin/JJ
trading/NN
volume/NN
points/NNS
to/TO
continued/JJ
uncertainty/NN
by/IN
most/JJS
investors/NNS
following/VBG
last/JJ
Monday/NNP
's/POS
record/JJ
13/CD
%/NN
loss/NN
./.
The/DT
market/NN
is/VBZ
still/RB
4/CD
%/NN
short/JJ
of/IN
its/PRP$
level/NN
before/IN
the/DT
plunge/NN
,/,
and/CC
analysts/NNS
are/VBP
n't/RB
sure/JJ
how/WRB
long/RB
it/PRP
will/MD
take/VB
until/IN
the/DT
DAX/NNP
has/VBZ
closed/VBN
that/DT
gap/NN
./.
But/CC
Norbert/NNP
Braeuer/NNP
,/,
chief/JJ
trader/NN
at/IN
Hessische/NNP
Landesbank/NNP
Girozentrale/NNP
Helaba/NNP
he/PRP
expects/VBZ
share/NN
prices/NNS
to/TO
move/VB
upward/RB
in/IN
the/DT
coming/JJ
weeks/NNS
./.
Banking/NN
stocks/NNS
were/VBD
the/DT
major/JJ
gainers/NNS
Monday/NNP
amid/IN
hope/NN
that/IN
interest/NN
rates/NNS
have/VBP
peaked/VBN
,/,
as/IN
Deutsche/NNP
Bank/NNP
and/CC
Dresdner/NNP
Bank/NNP
added/VBD
4/CD
marks/NNS
each/DT
to/TO
664/CD
marks/NNS
$/$
357/CD
326/CD
marks/NNS
,/,
respectively/RB
./.
Commerzbank/NNP
gained/VBD
1/CD
to/TO
252.5/CD
./.
Auto/NN
shares/NNS
were/VBD
mixed/JJ
,/,
as/IN
Daimler-Benz/NNP
firmed/VBD
2/CD
to/TO
723/CD
,/,
Bayerische/NNP
Motoren/NNP
Werke/NNP
lost/VBD
the/DT
same/JJ
amount/NN
to/TO
554/CD
,/,
and/CC
Volkswagen/NNP
inched/VBD
down/RB
1.4/CD
to/TO
451.6/CD
./.
Elsewhere/RB
,/,
prices/NNS
closed/VBD
higher/JJR
in/IN
Amsterdam/NNP
,/,
lower/JJR
in/IN
Zurich/NNP
,/,
Stockholm/NNP
and/CC
Milan/NNP
,/,
mixed/JJ
in/IN
Brussels/NNP
and/CC
unchanged/JJ
in/IN
Paris/NNP
./.
Shares/NNS
closed/VBD
higher/JJR
in/IN
Hong/NNP
Kong/NNP
,/,
Singapore/NNP
and/CC
Manila/NNP
,/,
and/CC
were/VBD
lower/JJR
in/IN
Sydney/NNP
,/,
Seoul/NNP
and/CC
Taipei/NNP
./.
Wellington/NNP
was/VBD
closed/VBN
./.
Here/RB
are/VBP
price/NN
trends/NNS
on/IN
the/DT
world/NN
's/POS
major/JJ
stock/NN
markets/NNS
,/,
as/IN
calculated/VBN
by/IN
Morgan/NNP
Stanley/NNP
Capital/NNP
International/NNP
Perspective/NNP
,/,
Geneva/NNP
./.
To/TO
make/VB
them/PRP
directly/RB
comparable/JJ
,/,
each/DT
index/NN
is/VBZ
based/VBN
on/IN
the/DT
close/NN
of/IN
1969/CD
equaling/VBG
100/CD
./.
The/DT
percentage/NN
change/NN
is/VBZ
since/IN
year-end/NN
./.
Enviropact/NNP
Inc./NNP
said/VBD
it/PRP
entered/VBD
into/IN
an/DT
agreement/NN
in/IN
principle/NN
to/TO
sell/VB
its/PRP$
pump/NN
and/CC
tank/NN
division/NN
and/CC
drilling/NN
division/NN
to/TO
GSX/NNP
Chemical/NNP
Services/NNP
for/IN
$/$
4/CD
million/CD
./.
The/DT
Miami-based/JJ
environmental/JJ
engineering/NN
concern/NN
said/VBD
GSX/NNP
Chemical/NNP
also/RB
will/MD
assume/VB
about/RB
$/$
1.6/CD
million/CD
in/IN
debt/NN
related/VBN
to/TO
those/DT
divisions/NNS
./.
Further/RB
,/,
GSX/NNP
will/MD
buy/VB
$/$
1/CD
million/CD
of/IN
Enviropact/NNP
common/JJ
stock/NN
,/,
at/IN
$/$
2.625/CD
a/DT
share/NN
,/,
plus/CC
an/DT
option/NN
to/TO
acquire/VB
an/DT
additional/JJ
$/$
1.5/CD
million/CD
of/IN
common/NN
at/IN
the/DT
same/JJ
price/NN
,/,
the/DT
company/NN
said/VBD
./.
In/IN
American/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
Enviropact/NNP
closed/VBD
at/IN
$/$
3/CD
a/DT
share/NN
,/,
up/RB
25/CD
cents/NNS
./.
Enviropact/NNP
said/VBD
the/DT
two/CD
divisions/NNS
account/VBP
for/IN
about/RB
$/$
8/CD
million/CD
of/IN
the/DT
company/NN
's/POS
$/$
20/CD
million/CD
in/IN
annual/JJ
revenue/NN
./.
The/DT
transaction/NN
is/VBZ
expected/VBN
to/TO
close/VB
within/IN
about/RB
20/CD
days/NNS
,/,
the/DT
company/NN
added/VBD
./.
Enviropact/NNP
said/VBD
the/DT
proceeds/NNS
will/MD
be/VB
used/VBN
as/IN
working/JJ
capital/NN
for/IN
expansion/NN
and/CC
to/TO
pay/VB
its/PRP$
existing/JJ
tax/NN
liability/NN
of/IN
about/RB
$/$
1.5/CD
million/CD
that/WDT
was/VBD
due/JJ
Sept./NNP
15/CD
./.
GSX/NNP
is/VBZ
a/DT
unit/NN
of/IN
Laidlaw/NNP
Transportation/NNP
Ltd./NNP
of/IN
Burlington/NNP
,/,
Canada/NNP
./.
Monday/NNP
,/,
October/NNP
23/CD
,/,
1989/CD
The/DT
key/JJ
U.S./NNP
and/CC
foreign/JJ
annual/JJ
interest/NN
rates/NNS
below/RB
are/VBP
a/DT
guide/NN
to/TO
general/JJ
levels/NNS
but/CC
do/VBP
n't/RB
always/RB
represent/VB
actual/JJ
transactions/NNS
./.
PRIME/JJ
RATE/NN
:/:
10/CD
1\/2/CD
%/NN
./.
The/DT
base/JJ
rate/NN
on/IN
corporate/JJ
loans/NNS
at/IN
large/JJ
U.S./NNP
money/NN
center/NN
commercial/JJ
banks/NNS
./.
8/CD
3\/4/CD
%/NN
high/JJ
,/,
8/CD
11\/16/CD
%/NN
low/JJ
,/,
8/CD
11\/16/CD
%/NN
near/IN
closing/NN
bid/NN
,/,
8/CD
3\/4/CD
%/NN
offered/VBN
./.
Reserves/NNS
traded/VBN
among/IN
commercial/JJ
banks/NNS
for/IN
overnight/JJ
use/NN
in/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
or/CC
more/JJR
./.
Source/NN
:/:
Fulton/NNP
Prebon/NNP
U.S.A/NNP
./.
Inc/NNP
./.
DISCOUNT/JJ
RATE/NN
:/:
7/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
depository/JJ
institutions/NNS
by/IN
the/DT
New/NNP
York/NNP
Federal/NNP
Reserve/NNP
Bank/NNP
./.
CALL/NN|JJ
MONEY/NNP
:/:
9/CD
3\/4/CD
%/NN
to/TO
10/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
brokers/NNS
on/IN
stock/NN
exchange/NN
collateral/NN
./.
COMMERCIAL/JJ
PAPER/NN
placed/VBN
directly/RB
by/IN
General/NNP
Motors/NNP
Acceptance/NNP
Corp./NNP
:/:
8.50/CD
%/NN
2/CD
to/TO
44/CD
days/NNS
;/:
8.25/CD
%/NN
45/CD
to/TO
69/CD
days/NNS
;/:
8.40/CD
%/NN
70/CD
to/TO
89/CD
days/NNS
;/:
8.20/CD
%/NN
90/CD
to/TO
119/CD
days/NNS
;/:
8.05/CD
%/NN
120/CD
to/TO
149/CD
days/NNS
;/:
7.90/CD
%/NN
150/CD
to/TO
179/CD
days/NNS
;/:
7.50/CD
%/NN
180/CD
to/TO
270/CD
days/NNS
./.
COMMERCIAL/JJ
PAPER/NN
:/:
High-grade/JJ
unsecured/JJ
notes/NNS
sold/VBN
through/IN
dealers/NNS
by/IN
major/JJ
corporations/NNS
in/IN
multiples/NNS
of/IN
$/$
1,000/CD
:/:
8.575/CD
%/NN
30/CD
days/NNS
;/:
8.50/CD
%/NN
60/CD
days/NNS
;/:
8.45/CD
%/NN
90/CD
days/NNS
./.
CERTIFICATES/NNS
OF/IN
DEPOSIT/NN
:/:
8.09/CD
%/NN
one/CD
month/NN
;/:
8.09/CD
%/NN
two/CD
months/NNS
;/:
8.06/CD
%/NN
three/CD
months/NNS
;/:
8/CD
%/NN
six/CD
months/NNS
;/:
7.94/CD
%/NN
one/CD
year/NN
./.
Average/NN
of/IN
top/JJ
rates/NNS
paid/VBN
by/IN
major/JJ
New/NNP
York/NNP
banks/NNS
on/IN
primary/JJ
new/JJ
issues/NNS
of/IN
negotiable/JJ
C.D.s/NNS
,/,
usually/RB
on/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
and/CC
more/JJR
./.
The/DT
minimum/JJ
unit/NN
is/VBZ
$/$
100,000/CD
./.
Typical/JJ
rates/NNS
in/IN
the/DT
secondary/JJ
market/NN
:/:
8.60/CD
%/NN
one/CD
month/NN
;/:
8.60/CD
%/NN
three/CD
months/NNS
;/:
8.40/CD
%/NN
six/CD
months/NNS
./.
BANKERS/NNS
ACCEPTANCES/NNS
:/:
8.50/CD
%/NN
30/CD
days/NNS
;/:
8.32/CD
%/NN
60/CD
days/NNS
;/:
8.32/CD
%/NN
90/CD
days/NNS
;/:
8.16/CD
%/NN
120/CD
days/NNS
;/:
8.05/CD
%/NN
150/CD
days/NNS
;/:
7.96/CD
%/NN
180/CD
days/NNS
./.
Negotiable/JJ
,/,
bank-backed/JJ
business/NN
credit/NN
instruments/NNS
typically/RB
financing/VBG
an/DT
import/NN
order/NN
./.
LONDON/NNP
LATE/JJ
EURODOLLARS/NNPS|NNS
:/:
8/CD
3\/4/CD
%/NN
to/TO
8/CD
5\/8/CD
%/NN
one/CD
month/NN
;/:
8/CD
11\/16/CD
%/NN
to/TO
8/CD
9\/16/CD
%/NN
two/CD
months/NNS
;/:
8/CD
3\/4/CD
%/NN
to/TO
8/CD
5\/8/CD
%/NN
three/CD
months/NNS
;/:
8/CD
5\/8/CD
%/NN
to/TO
8/CD
1\/2/CD
%/NN
four/CD
months/NNS
;/:
8/CD
9\/16/CD
%/NN
to/TO
8/CD
7\/16/CD
%/NN
five/CD
months/NNS
;/:
8/CD
9\/16/CD
%/NN
to/TO
8/CD
7\/16/CD
%/NN
six/CD
months/NNS
./.
LONDON/NNP
INTERBANK/JJ
OFFERED/JJ
RATES/NNS
LIBOR/NNP
8/CD
3\/4/CD
%/NN
one/CD
month/NN
;/:
8/CD
3\/4/CD
%/NN
three/CD
months/NNS
;/:
8/CD
9\/16/CD
%/NN
six/CD
months/NNS
;/:
8/CD
1\/2/CD
%/NN
one/CD
year/NN
./.
The/DT
average/NN
of/IN
interbank/JJ
offered/JJ
rates/NNS
for/IN
dollar/NN
deposits/NNS
in/IN
the/DT
London/NNP
market/NN
based/VBN
on/IN
quotations/NNS
at/IN
five/CD
major/JJ
banks/NNS
./.
FOREIGN/JJ
PRIME/JJ
RATES/NNS
:/:
Canada/NNP
13.50/CD
%/NN
;/:
Germany/NNP
9/CD
%/NN
;/:
Japan/NNP
4.875/CD
%/NN
;/:
Switzerland/NN
8.50/CD
%/NN
;/:
Britain/NNP
15/CD
%/NN
./.
These/DT
rate/NN
indications/NNS
are/VBP
n't/RB
directly/RB
comparable/JJ
;/:
lending/NN
practices/NNS
vary/VBP
widely/RB
by/IN
location/NN
./.
Results/NNS
of/IN
the/DT
Monday/NNP
,/,
October/NNP
23/CD
,/,
1989/CD
,/,
auction/NN
of/IN
short-term/JJ
U.S./NNP
government/NN
bills/NNS
,/,
sold/VBN
at/IN
a/DT
discount/NN
from/IN
face/NN
value/NN
in/IN
units/NNS
of/IN
$/$
10,000/CD
to/TO
$/$
1/CD
million/CD
:/:
7.52/CD
%/NN
,/,
13/CD
weeks/NNS
;/:
7.50/CD
%/NN
,/,
26/CD
weeks/NNS
./.
FEDERAL/NNP
HOME/NNP
LOAN/NNP
MORTGAGE/NNP
CORP/NNP
./.
Freddie/NNP
Mac/NNP
yields/NNS
on/IN
30-year/JJ
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
./.
9.86/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
7.875/CD
%/NN
,/,
2/CD
%/NN
rate/NN
capped/JJ
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNP
Inc/NNP
./.
FEDERAL/NNP
NATIONAL/NNP
MORTGAGE/NNP
ASSOCIATION/NNP
Fannie/NNP
Mae/NNP
yields/NNS
on/IN
30/CD
year/NN
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
)/)
./.
9.80/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
8.75/CD
%/NN
,/,
6\/2/CD
rate/NN
capped/JJ
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNP
Inc/NNP
./.
MERRILL/NNP
LYNCH/NNP
READY/NNP
ASSETS/NNP
TRUST/NNP
:/:
8.56/CD
%/NN
./.
Annualized/JJ
average/JJ
rate/NN
of/IN
return/NN
after/IN
expenses/NNS
for/IN
the/DT
past/JJ
30/CD
days/NNS
;/:
not/RB
a/DT
forecast/NN
of/IN
future/JJ
returns/NNS
./.
Bankers/NNP
Trust/NNP
New/NNP
York/NNP
Corp./NNP
,/,
as/IN
expected/VBN
,/,
reported/VBD
a/DT
third-quarter/JJ
loss/NN
of/IN
$/$
1.42/CD
billion/CD
,/,
or/CC
$/$
17.39/CD
a/DT
share/NN
,/,
following/VBG
its/PRP$
$/$
1.6/CD
billion/CD
boost/NN
in/IN
reserves/NNS
for/IN
losses/NNS
on/IN
loans/NNS
to/TO
less-developed/JJ
countries/NNS
./.
The/DT
loss/NN
compares/VBZ
with/IN
net/JJ
income/NN
of/IN
$/$
162.1/CD
million/CD
,/,
or/CC
$/$
2.01/CD
a/DT
share/NN
,/,
in/IN
the/DT
year-earlier/JJ
period/NN
./.
Interest/NN
income/NN
rose/VBD
29/CD
%/NN
to/TO
about/RB
$/$
1.35/CD
billion/CD
from/IN
$/$
1.05/CD
billion/CD
./.
The/DT
New/NNP
York/NNP
bank/NN
holding/NN
company/NN
's/POS
assets/NNS
at/IN
Sept./NNP
30/CD
climbed/VBD
to/TO
$/$
59.4/CD
billion/CD
from/IN
$/$
57.9/CD
billion/CD
./.
Excluding/VBG
the/DT
increase/NN
in/IN
loan-loss/JJ
reserves/NNS
,/,
Bankers/NNP
Trust/NNP
said/VBD
third-quarter/JJ
net/JJ
income/NN
would/MD
have/VB
increased/VBN
11/CD
%/NN
to/TO
$/$
180/CD
million/CD
./.
A/DT
number/NN
of/IN
major/JJ
banks/NNS
have/VBP
posted/VBN
big/JJ
losses/NNS
after/IN
sharply/RB
increasing/VBG
loan-loss/JJ
reserves/NNS
./.
Most/JJS
of/IN
the/DT
loans/NNS
in/IN
question/NN
are/VBP
to/TO
Third/NNP
World/NNP
countries/NNS
in/IN
South/NNP
America/NNP
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
Bankers/NNP
Trust/NNP
fell/VBD
12.5/CD
cents/NNS
to/TO
$/$
50.50/CD
./.
BRISTOL-MYERS/NNP
SQUIBB/NNP
Co/NNP
./.
New/NNP
York/NNP
Gerald/NNP
C./NNP
Beddall/NNP
,/,
47/CD
years/NNS
old/JJ
,/,
was/VBD
named/VBN
president/NN
of/IN
the/DT
Clairol/NNP
division/NN
of/IN
this/DT
pharmaceuticals/NNS
and/CC
health-care/NN
company/NN
./.
He/PRP
succeeds/VBZ
C./NNP
Benjamin/NNP
Brooks/NNP
Jr./NNP
,/,
who/WP
will/MD
retire/VB
Nov./NNP
1/CD
./.
Mr./NNP
Brooks/NNP
declined/VBD
to/TO
give/VB
his/PRP$
age/NN
,/,
but/CC
he/PRP
said/VBD
his/PRP$
leaving/NN
is/VBZ
a/DT
normal/JJ
retirement/NN
./.
Mr./NNP
Beddall/NNP
had/VBD
been/VBN
executive/JJ
vice/NN
president/NN
of/IN
the/DT
division/NN
since/IN
April/NNP
./.
Clairol/NNP
,/,
which/WDT
makes/VBZ
hair/NN
and/CC
skin/NN
products/NNS
,/,
was/VBD
a/DT
division/NN
of/IN
Bristol-Myers/NNP
Co./NNP
before/IN
that/DT
company/NN
's/POS
merger/NN
with/IN
Squibb/NNP
Corp/NNP
./.
Annualized/JJ
interest/NN
rates/NNS
on/IN
certain/JJ
investments/NNS
as/IN
reported/VBN
by/IN
the/DT
Federal/NNP
Reserve/NNP
Board/NNP
on/IN
a/DT
weekly-average/JJ
basis/NN
:/:
a/SYM
-/:
Discounted/JJ
rate/NN
./.
b/SYM
-/:
Week/NN
ended/VBN
Wednesday/NNP
,/,
October/NNP
18/CD
,/,
1989/CD
and/CC
Wednesday/NNP
October/NNP
11/CD
,/,
1989/CD
./.
c/SYM
-/:
Yields/NNS
,/,
adjusted/VBN
for/IN
constant/JJ
maturity/NN
./.
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
Co./NNP
said/VBD
it/PRP
will/MD
spend/VB
$/$
20/CD
million/CD
to/TO
build/VB
a/DT
factory/NN
in/IN
Guadalajara/NNP
,/,
Mexico/NNP
,/,
to/TO
make/VB
telephone/NN
answering/NN
machines/NNS
./.
Construction/NN
of/IN
the/DT
265,000-square-foot/JJ
facility/NN
will/MD
begin/VB
next/JJ
year/NN
,/,
with/IN
production/NN
expected/VBN
to/TO
start/VB
in/IN
late/JJ
1991/CD
./.
When/WRB
fully/RB
operational/JJ
,/,
the/DT
Guadalajara/NNP
factory/NN
will/MD
employ/VB
about/RB
1,500/CD
workers/NNS
and/CC
have/VB
annual/JJ
operating/NN
expenses/NNS
of/IN
$/$
5/CD
million/CD
to/TO
$/$
6/CD
million/CD
./.
An/DT
AT&T/NNP
representative/NN
said/VBD
that/IN
the/DT
Guadalajara/NNP
factory/NN
will/MD
make/VB
a/DT
full/JJ
line/NN
of/IN
answering/NN
machines/NNS
./.
AT&T/NNP
already/RB
has/VBZ
a/DT
factory/NN
in/IN
Matamoros/NNP
,/,
Mexico/NNP
,/,
to/TO
make/VB
electrical/JJ
devices/NNS
./.
It/PRP
also/RB
purchases/VBZ
data/NN|NNS
systems/NNS
products/NNS
from/IN
a/DT
manufacturer/NN
based/VBN
in/IN
Monterrey/NNP
./.
Lucas/NNP
Industries/NNP
PLC/NNP
,/,
a/DT
British/JJ
maker/NN
of/IN
industrial/JJ
parts/NNS
and/CC
systems/NNS
,/,
reported/VBD
a/DT
28/CD
%/NN
rise/NN
in/IN
pretax/JJ
profit/NN
for/IN
the/DT
year/NN
to/TO
July/NNP
31/CD
,/,
helped/VBN
in/IN
particular/JJ
by/IN
a/DT
32/CD
%/NN
jump/NN
in/IN
operating/NN
profit/NN
at/IN
its/PRP$
aerospace/JJ
division/NN
./.
Pretax/JJ
profit/NN
in/IN
the/DT
latest/JJS
year/NN
climbed/VBD
to/TO
#/#
187.1/CD
million/CD
$/$
297.1/CD
million/CD
#/#
146.3/CD
million/CD
$/$
232.3/CD
million/CD
Profit/NN
after/IN
taxes/NNS
and/CC
minority/NN
interests/NNS
but/CC
before/IN
extraordinary/JJ
items/NNS
climbed/VBD
27/CD
%/NN
to/TO
#/#
143.4/CD
million/CD
from/IN
#/#
112.5/CD
million/CD
,/,
with/IN
earnings/NNS
per/IN
share/NN
rising/VBG
to/TO
85.1/CD
pence/NNS
$/$
1.35/CD
79.4/CD
pence/NNS
$/$
1.26/CD
The/DT
results/NNS
were/VBD
at/IN
the/DT
upper/JJ
end/NN
of/IN
market/NN
expectations/NNS
,/,
which/WDT
ranged/VBD
from/IN
#/#
185/CD
million/CD
to/TO
#/#
188/CD
million/CD
./.
TW/NNP
Services/NNP
Inc./NNP
posted/VBD
a/DT
$/$
3.3/CD
million/CD
third-quarter/JJ
net/JJ
loss/NN
,/,
compared/VBN
with/IN
a/DT
$/$
24.9/CD
million/CD
profit/NN
,/,
reflecting/VBG
$/$
60/CD
million/CD
of/IN
expenses/NNS
related/VBN
to/TO
its/PRP$
much-publicized/JJ
proposed/JJ
takeover/NN
by/IN
Coniston/NNP
Partners/NNP
./.
The/DT
per-share/JJ
loss/NN
for/IN
the/DT
Paramus/NNP
,/,
N.J./NNP
,/,
food-services/NNS
concern/NN
totaled/VBD
seven/CD
cents/NNS
,/,
compared/VBN
with/IN
earnings/NNS
of/IN
51/CD
cents/NNS
a/DT
share/NN
a/DT
year/NN
earlier/RBR
./.
Revenue/NN
rose/VBD
5/CD
%/NN
to/TO
$/$
981.7/CD
million/CD
from/IN
$/$
934.7/CD
million/CD
./.
Coniston/NNP
,/,
a/DT
New/NNP
York/NNP
investment/NN
partnership/NN
,/,
awaits/VBZ
a/DT
vote/NN
by/IN
TW/NNP
's/POS
shareholders/NNS
,/,
scheduled/VBN
for/IN
Friday/NNP
,/,
on/IN
Coniston/NNP
's/POS
$/$
34-a-share/JJ
,/,
or/CC
$/$
1.66/CD
billion/CD
,/,
offer/NN
for/IN
TW/NNP
./.
Nine-month/JJ
net/JJ
income/NN
dropped/VBD
47/CD
%/NN
to/TO
$/$
26.3/CD
million/CD
,/,
or/CC
54/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
49.7/CD
million/CD
,/,
or/CC
$/$
1.02/CD
a/DT
share/NN
./.
Revenue/NN
rose/VBD
6/CD
%/NN
to/TO
$/$
2.79/CD
billion/CD
from/IN
$/$
2.63/CD
billion/CD
./.
Cummins/NNP
Engine/NNP
Co./NNP
,/,
Columbus/NNP
,/,
Ind./NNP
,/,
hurt/VBN
by/IN
a/DT
drop/NN
in/IN
engine/NN
orders/NNS
from/IN
heavy-truck/NN
makers/NNS
,/,
reported/VBD
a/DT
third-quarter/JJ
loss/NN
of/IN
$/$
39.7/CD
million/CD
,/,
or/CC
$/$
4.12/CD
a/DT
share/NN
,/,
on/IN
essentially/RB
flat/JJ
sales/NNS
of/IN
$/$
807.6/CD
million/CD
./.
In/IN
the/DT
year-earlier/JJ
period/NN
,/,
the/DT
maker/NN
of/IN
diesel/JJ
engines/NNS
and/CC
parts/NNS
had/VBD
a/DT
narrower/JJR
deficit/NN
of/IN
$/$
17.6/CD
million/CD
,/,
or/CC
$/$
1.84/CD
a/DT
share/NN
,/,
with/IN
sales/NNS
of/IN
$/$
808.3/CD
million/CD
./.
A/DT
spokeswoman/NN
said/VBD
shipments/NNS
of/IN
truck/NN
engines/NNS
,/,
which/WDT
provide/VBP
a/DT
higher/JJR
margin/NN
than/IN
most/JJS
of/IN
the/DT
company/NN
's/POS
other/JJ
products/NNS
,/,
declined/VBD
16/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
./.
Although/IN
Cummins/NNP
's/POS
stock/NN
stumbled/VBD
last/JJ
month/NN
after/IN
the/DT
company/NN
projected/VBD
a/DT
``/``
substantial/JJ
''/''
third-period/JJ
loss/NN
,/,
the/DT
stock/NN
also/RB
fell/VBD
$/$
1.125/CD
in/IN
composite/JJ
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
trading/NN
yesterday/NN
,/,
to/TO
$/$
51.75/CD
./.
It/PRP
traded/VBD
as/RB
high/JJ
as/IN
$/$
64/CD
a/DT
month/NN
ago/RB
,/,
before/IN
the/DT
loss/NN
projection/NN
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
the/DT
latest/JJS
loss/NN
trimmed/VBD
net/JJ
income/NN
to/TO
$/$
3.6/CD
million/CD
,/,
which/WDT
after/IN
payment/NN
of/IN
preferred/JJ
dividends/NNS
represented/VBD
a/DT
31-cent/JJ
loss/NN
a/DT
common/JJ
share/NN
./.
The/DT
year-before/JJ
loss/NN
was/VBD
$/$
8.4/CD
million/CD
,/,
or/CC
$/$
1.36/CD
a/DT
common/JJ
share/NN
./.
Exxon/NNP
Corp./NNP
filed/VBD
suit/NN
against/IN
the/DT
state/NN
of/IN
Alaska/NNP
,/,
charging/VBG
state/NN
officials/NNS
interfered/VBD
with/IN
the/DT
oil/NN
company/NN
's/POS
initial/JJ
efforts/NNS
to/TO
treat/VB
last/JJ
spring/NN
's/POS
giant/JJ
oil/NN
spill/NN
./.
The/DT
action/NN
is/VBZ
a/DT
counterclaim/NN
to/TO
a/DT
suit/NN
filed/VBN
by/IN
Alaska/NNP
in/IN
August/NNP
against/IN
Exxon/NNP
and/CC
six/CD
other/JJ
oil/NN
companies/NNS
./.
The/DT
state/NN
's/POS
suit/NN
alleges/VBZ
that/IN
Exxon/NNP
's/POS
response/NN
to/TO
the/DT
spill/NN
failed/VBD
to/TO
prevent/VB
contamination/NN
of/IN
hundreds/NNS
of/IN
miles/NNS
of/IN
shoreline/NN
along/IN
Prince/NNP
William/NNP
Sound/NNP
./.
That/DT
suit/NN
and/CC
Exxon/NNP
's/POS
countersuit/NN
were/VBD
filed/VBN
in/IN
a/DT
state/NN
court/NN
in/IN
Anchorage/NNP
./.
Neither/DT
suit/NN
lists/VBZ
specific/JJ
dollar/NN
claims/NNS
,/,
largely/RB
because/IN
damage/NN
assessment/NN
has/VBZ
n't/RB
yet/RB
been/VBN
completed/VBN
./.
Legal/JJ
strategists/NNS
say/VBP
that/IN
damage/NN
claims/NNS
against/IN
the/DT
oil/NN
giant/NN
and/CC
others/NNS
could/MD
well/RB
exceed/VB
$/$
1/CD
billion/CD
./.
Litigation/NN
,/,
if/IN
not/RB
settled/VBN
out/IN
of/IN
court/NN
,/,
could/MD
drag/VB
on/RB
for/IN
years/NNS
./.
Exxon/NNP
said/VBD
in/IN
its/PRP$
suit/NN
that/IN
it/PRP
will/MD
seek/VB
reimbursement/NN
from/IN
the/DT
state/NN
for/IN
that/DT
part/NN
of/IN
the/DT
cleanup/NN
costs/NNS
and/CC
damage/NN
claims/NNS
it/PRP
says/VBZ
resulted/VBD
from/IN
the/DT
state/NN
's/POS
conduct/NN
./.
The/DT
oil/NN
company/NN
claims/VBZ
that/IN
Alaskan/JJ
officials/NNS
prevented/VBD
Exxon/NNP
from/IN
spraying/VBG
dispersant/NN
onto/IN
the/DT
almost/RB
11/CD
million/CD
gallons/NNS
of/IN
oil/NN
dumped/VBN
when/WRB
one/CD
of/IN
its/PRP$
tankers/NNS
ran/VBD
into/IN
an/DT
underwater/JJ
reef/NN
./.
Craig/NNP
Tillery/NNP
,/,
an/DT
Alaska/NNP
assistant/JJ
attorney/NN
general/NN
,/,
said/VBD
in/IN
an/DT
interview/NN
last/JJ
night/NN
that/IN
Exxon/NNP
's/POS
accusations/NNS
``/``
are/VBP
not/RB
new/JJ
./.
Exxon/NNP
has/VBZ
made/VBN
them/PRP
before/RB
,/,
at/IN
which/WDT
point/NN
the/DT
state/NN
demonstrated/VBD
they/PRP
were/VBD
untrue/JJ
./.
The/DT
state/NN
will/MD
vigorously/RB
defend/VB
against/IN
any/DT
counterclaim/NN
./.
''/''
Since/IN
the/DT
spill/NN
last/JJ
March/NNP
,/,
Exxon/NNP
and/CC
the/DT
state/NN
have/VBP
been/VBN
wrangling/VBG
over/IN
whether/IN
spraying/VBG
dispersant/NN
on/IN
the/DT
oil/NN
in/IN
the/DT
first/JJ
hours/NNS
after/IN
the/DT
spill/NN
,/,
when/WRB
the/DT
weather/NN
was/VBD
clear/JJ
and/CC
calm/JJ
,/,
would/MD
have/VB
helped/VBN
limit/VB
the/DT
environmental/JJ
damage/NN
./.
Exxon/NNP
claims/VBZ
that/IN
use/NN
of/IN
dispersants/NNS
,/,
which/WDT
break/VBP
an/DT
oil/NN
slick/NN
into/IN
microscopic/JJ
droplets/NNS
,/,
was/VBD
a/DT
crucial/JJ
part/NN
of/IN
its/PRP$
immediate-response/JJ
plan/NN
and/CC
that/IN
state/NN
officials/NNS
banned/VBD
their/PRP$
use/NN
during/IN
the/DT
two/CD
days/NNS
of/IN
fair/JJ
weather/NN
following/VBG
the/DT
spill/NN
./.
The/DT
oil/NN
company/NN
claims/VBZ
that/IN
it/PRP
had/VBD
permission/NN
from/IN
the/DT
U.S./NNP
Environmental/NNP
Protection/NNP
Agency/NNP
prior/RB
to/TO
the/DT
spill/NN
to/TO
use/VB
dispersant/NN
during/IN
such/PDT
an/DT
incident/NN
at/IN
the/DT
discretion/NN
of/IN
the/DT
U.S./NNP
Coast/NNP
Guard/NNP
./.
The/DT
state/NN
's/POS
opposition/NN
to/TO
the/DT
use/NN
of/IN
dispersants/NNS
,/,
Exxon/NNP
says/VBZ
,/,
caused/VBD
the/DT
Coast/NNP
Guard/NNP
``/``
to/TO
delay/VB
granting/VBG
permission/NN
./.
''/''
Alaskan/JJ
and/CC
Coast/NNP
Guard/NNP
officials/NNS
say/VBP
Exxon/NNP
's/POS
charges/NNS
are/VBP
n't/RB
relevant/JJ
because/IN
tests/NNS
conducted/VBN
during/IN
the/DT
first/JJ
two/CD
days/NNS
following/VBG
the/DT
spill/NN
showed/VBD
that/IN
the/DT
dispersant/NN
was/VBD
n't/RB
working/VBG
anyway/RB
./.
Use/NN
of/IN
dispersants/NNS
was/VBD
approved/VBN
when/WRB
a/DT
test/NN
on/IN
the/DT
third/JJ
day/NN
showed/VBD
some/DT
positive/JJ
results/NNS
,/,
officials/NNS
said/VBD
./.
Meson/NNP
Investment/NNP
Ltd./NNP
,/,
a/DT
Vancouver/NNP
,/,
B.C.-based/JJ
investment/NN
firm/NN
,/,
said/VBD
it/PRP
raised/VBD
its/PRP$
stake/NN
in/IN
Verit/NNP
Industries/NNP
to/TO
8.9/CD
%/NN
of/IN
the/DT
common/JJ
shares/NNS
outstanding/JJ
./.
In/IN
a/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
filing/NN
,/,
Meson/NNP
said/VBD
it/PRP
holds/VBZ
67,400/CD
Verit/NNP
common/JJ
shares/NNS
,/,
including/VBG
net/JJ
purchases/NNS
of/IN
8,100/CD
shares/NNS
bought/VBN
from/IN
Oct./NNP
10/CD
,/,
1988/CD
,/,
to/TO
Oct./NNP
11/CD
,/,
1989/CD
,/,
for/IN
$/$
3.875/CD
to/TO
$/$
7/CD
each/DT
./.
Meson/NNP
is/VBZ
the/DT
personal/JJ
holding/NN
company/NN
of/IN
Steven/NNP
Morfey/NNP
,/,
a/DT
Vancouver/NNP
securities/NNS
dealer/NN
./.
He/PRP
said/VBD
the/DT
transaction/NN
was/VBD
made/VBN
for/IN
investment/NN
purposes/NNS
./.
Officials/NNP
for/IN
Sun/NNP
Valley/NNP
,/,
Calif.-based/JJ
Verit/NNP
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
American/NNP
Stock/NNP
Exchange/NNP
,/,
Verit/NNP
closed/VBD
unchanged/JJ
yesterday/NN
at/IN
$/$
3.875/CD
a/DT
share/NN
./.
The/DT
House/NNP
Appropriations/NNP
Committee/NNP
approved/VBD
an/DT
estimated/JJ
$/$
2.85/CD
billion/CD
in/IN
emergency/NN
funding/NN
to/TO
assist/VB
California/NNP
's/POS
recovery/NN
from/IN
last/JJ
week/NN
's/POS
earthquake/NN
and/CC
to/TO
extend/VB
further/JJ
aid/NN
to/TO
East/NNP
Coast/NNP
victims/NNS
of/IN
Hurricane/NNP
Hugo/NNP
./.
The/DT
package/NN
was/VBD
termed/VBN
excessive/JJ
by/IN
the/DT
Bush/NNP
administration/NN
,/,
but/CC
it/PRP
also/RB
provoked/VBD
a/DT
struggle/NN
with/IN
influential/JJ
California/NNP
lawmakers/NNS
who/WP
sought/VBD
unsuccessfully/RB
to/TO
add/VB
nearly/RB
$/$
1/CD
billion/CD
more/JJR
and/CC
waive/VB
current/JJ
restrictions/NNS
to/TO
expedite/VB
the/DT
distribution/NN
of/IN
funds/NNS
./.
By/IN
a/DT
26-7/JJ
margin/NN
,/,
the/DT
committee/NN
scuttled/VBD
the/DT
more/RBR
expensive/JJ
alternative/NN
,/,
and/CC
the/DT
debate/NN
forced/VBD
a/DT
strained/JJ
confrontation/NN
between/IN
Appropriations/NNP
Committee/NNP
Chairman/NNP
Jamie/NNP
Whitten/NNP
D./NNP
,/,
Miss/NNP
./.
his/PRP$
party/NN
's/POS
largest/JJS
state/NN
delegation/NN
in/IN
the/DT
House/NNP
./.
``/``
I/PRP
have/VBP
no/DT
regrets/NNS
about/IN
going/VBG
forward/RB
,/,
''/''
said/VBD
Rep./NNP
Vic/NNP
Fazio/NNP
D./NNP
,/,
Calif./NNP
who/WP
sought/VBD
later/RB
to/TO
play/VB
down/RP
the/DT
sometimes/RB
hostile/JJ
tone/NN
of/IN
the/DT
long/JJ
evening/NN
meeting/NN
./.
``/``
We/PRP
are/VBP
the/DT
Golden/NNP
State/NNP
,/,
''/''
Mr./NNP
Fazio/NNP
said/VBD
,/,
``/``
and/CC
there/EX
is/VBZ
a/DT
certain/JJ
amount/NN
of/IN
jealousy/NN
./.
''/''
The/DT
$/$
2.85/CD
billion/CD
package/NN
incorporates/VBZ
$/$
500/CD
million/CD
for/IN
small-business/NN
loans/NNS
,/,
$/$
1/CD
billion/CD
in/IN
highway/NN
construction/NN
funds/NNS
,/,
and/CC
$/$
1.35/CD
billion/CD
divided/VBN
between/IN
general/JJ
emergency/NN
assistance/NN
and/CC
a/DT
reserve/NN
to/TO
be/VB
available/JJ
to/TO
President/NNP
Bush/NNP
to/TO
meet/VB
unanticipated/JJ
costs/NNS
from/IN
the/DT
two/CD
disasters/NNS
./.
The/DT
funding/VBG
is/VBZ
attached/VBN
to/TO
a/DT
stopgap/JJ
bill/NN
to/TO
keep/VB
most/JJS
of/IN
the/DT
government/NN
operating/VBG
through/IN
Nov./NNP
15/CD
./.
The/DT
measure/NN
is/VBZ
expected/VBN
to/TO
come/VB
before/IN
the/DT
House/NNP
today/NN
,/,
and/CC
Congress/NNP
is/VBZ
under/IN
pressure/NN
to/TO
complete/VB
action/NN
before/IN
midnight/NN
EDT/NNP
tomorrow/NN
,/,
when/WRB
the/DT
current/NN
continuing/JJ
resolution/NN
expires/VBZ
./.
Given/VBN
California/NNP
's/POS
size/NN
and/CC
political/JJ
importance/NN
,/,
the/DT
White/NNP
House/NNP
is/VBZ
eager/JJ
to/TO
appear/VB
generous/JJ
./.
But/CC
in/IN
private/JJ
meetings/NNS
yesterday/NN
,/,
Budget/NNP
Director/NNP
Richard/NNP
Darman/NNP
argued/VBD
that/IN
only/RB
$/$
1.5/CD
billion/CD
in/IN
new/JJ
federal/JJ
appropriations/NNS
are/VBP
needed/VBN
to/TO
supplement/VB
existing/JJ
resources/NNS
./.
A/DT
White/NNP
House/NNP
budget/NN
office/NN
analysis/NN
estimates/VBZ
that/IN
$/$
500/CD
million/CD
--/:
or/CC
half/PDT
the/DT
level/NN
in/IN
the/DT
committee/NN
bill/NN
--/:
is/VBZ
needed/VBN
for/IN
highway/NN
assistance/NN
to/TO
meet/VB
California/NNP
's/POS
needs/NNS
,/,
and/CC
the/DT
administration/NN
rejects/VBZ
the/DT
notion/NN
that/IN
new/JJ
appropriations/NNS
are/VBP
needed/VBN
to/TO
finance/VB
disaster/NN
loans/NNS
by/IN
the/DT
Small/NNP
Business/NNP
Administration/NNP
./.
``/``
Everybody/NN
appreciates/VBZ
that/IN
it/PRP
is/VBZ
a/DT
national/JJ
disaster/NN
and/CC
that/IN
we/PRP
've/VBP
got/VBD
to/TO
address/VB
it/PRP
,/,
''/''
said/VBD
Mr./NNP
Darman/NNP
,/,
who/WP
came/VBD
to/TO
the/DT
Capitol/NNP
to/TO
meet/VB
with/IN
Mr./NNP
Whitten/NNP
and/CC
California/NNP
lawmakers/NNS
before/IN
the/DT
committee/NN
session/NN
./.
``/``
I/PRP
would/MD
hope/VB
very/RB
much/RB
that/IN
we/PRP
would/MD
n't/RB
end/VB
up/RP
in/IN
a/DT
kind/NN
of/IN
situation/NN
where/WRB
you/PRP
have/VBP
a/DT
bidding/NN
war/NN
and/CC
then/RB
a/DT
veto/NN
threat/NN
./.
''/''
Although/IN
this/DT
White/NNP
House/NNP
pressure/NN
was/VBD
clearly/RB
a/DT
factor/NN
among/IN
committee/NN
Republicans/NNPS
,/,
no/DT
single/JJ
influence/NN
was/VBD
greater/JJR
than/IN
Mr./NNP
Whitten/NNP
./.
A/DT
master/NN
of/IN
pork-barrel/JJ
politics/NNS
,/,
he/PRP
had/VBD
crafted/VBN
the/DT
$/$
2.85/CD
billion/CD
package/NN
in/IN
vintage/JJ
style/NN
and/CC
used/VBD
the/DT
full/JJ
force/NN
of/IN
his/PRP$
chairmanship/NN
to/TO
keep/VB
the/DT
proposal/NN
intact/JJ
and/CC
dismiss/VB
any/DT
alternative/NN
./.
When/WRB
Mr./NNP
Fazio/NNP
offered/VBD
the/DT
California-backed/JJ
$/$
3.84/CD
billion/CD
plan/NN
,/,
Mr./NNP
Whitten/NNP
insisted/VBD
that/IN
the/DT
full/JJ
14/CD
pages/NNS
be/VB
read/VBN
aloud/RB
by/IN
the/DT
panel/NN
's/POS
clerk/NN
to/TO
underscore/VB
the/DT
range/NN
of/IN
legislative/JJ
changes/NNS
also/RB
sought/VBN
by/IN
the/DT
delegation/NN
./.
On/IN
the/DT
chairman/NN
's/POS
motion/NN
,/,
the/DT
California/NNP
package/NN
was/VBD
subsequently/RB
reduced/VBN
to/TO
less-binding/JJ
report/NN
language/NN
,/,
and/CC
even/RB
when/WRB
this/DT
was/VBD
accepted/VBN
as/IN
such/JJ
on/IN
a/DT
voice/NN
vote/NN
,/,
Mr./NNP
Whitten/NNP
pointedly/RB
opposed/VBD
it/PRP
./.
More/RBR
important/JJ
than/IN
money/NN
in/IN
many/JJ
cases/NNS
are/VBP
waivers/NNS
California/NNP
is/VBZ
seeking/VBG
on/IN
current/JJ
restrictions/NNS
covering/VBG
federal/JJ
highway/NN
funds/NNS
,/,
such/JJ
as/IN
a/DT
$/$
100/CD
million/CD
cap/NN
on/IN
how/WRB
much/JJ
any/DT
single/JJ
state/NN
can/MD
receive/VB
in/IN
emergency/NN
funds/NNS
in/IN
a/DT
year/NN
./.
Mr./NNP
Whitten/NNP
's/POS
package/NN
appears/VBZ
to/TO
accomplish/VB
this/DT
purpose/NN
,/,
but/CC
the/DT
state/NN
faces/VBZ
more/JJR
resistance/NN
in/IN
its/PRP$
bid/NN
for/IN
an/DT
extended/JJ
waiver/NN
on/IN
having/VBG
to/TO
put/VB
up/RP
any/DT
matching/JJ
funds/NNS
on/IN
repairs/NNS
completed/VBN
in/IN
the/DT
next/JJ
six/CD
months/NNS
./.
A/DT
member/NN
in/IN
the/DT
House/NNP
leadership/NN
and/CC
skilled/JJ
legislator/NN
,/,
Mr./NNP
Fazio/NNP
nonetheless/RB
found/VBD
himself/PRP
burdened/VBN
not/RB
only/RB
by/IN
California/NNP
's/POS
needs/NNS
but/CC
by/IN
Hurricane/NNP
Hugo/NNP
amendments/NNS
he/PRP
accepted/VBD
in/IN
a/DT
vain/JJ
effort/NN
to/TO
build/VB
support/NN
in/IN
the/DT
panel/NN
./.
The/DT
California/NNP
Democrat/NNP
appeared/VBD
embarrassed/JJ
by/IN
provisions/NNS
inserted/VBN
on/IN
behalf/NN
of/IN
owners/NNS
of/IN
private/JJ
beaches/NNS
in/IN
the/DT
Virgin/NNP
Islands/NNP
,/,
and/CC
lumber/NN
interests/NNS
sought/VBD
to/TO
add/VB
another/DT
$/$
100/CD
million/CD
in/IN
federal/JJ
aid/NN
to/TO
plant/NN
timber/NN
on/IN
private/JJ
land/NN
in/IN
North/NNP
and/CC
South/NNP
Carolina/NNP
./.
California/NNP
's/POS
high-priced/JJ
real/JJ
estate/NN
puts/VBZ
it/PRP
in/IN
an/DT
awkward/JJ
position/NN
,/,
too/RB
./.
One/CD
provision/NN
last/JJ
night/NN
would/MD
have/VB
raised/VBN
the/DT
cap/NN
on/IN
disaster/NN
loans/NNS
to/TO
$/$
500,000/CD
from/IN
$/$
100,000/CD
per/IN
household/NN
to/TO
accommodate/VB
San/NNP
Francisco/NNP
losses/NNS
./.
Kurzweil/NNP
Music/NNP
Systems/NNP
Inc./NNP
said/VBD
it/PRP
retained/VBD
Kidder/NNP
,/,
Peabody/NNP
&/CC
Co./NNP
to/TO
study/VB
financial/JJ
alternatives/NNS
,/,
including/VBG
the/DT
possible/JJ
sale/NN
of/IN
the/DT
financially/RB
struggling/VBG
company/NN
./.
Kurzweil/NNP
,/,
Waltham/NNP
,/,
Mass./NNP
,/,
makes/VBZ
digital/JJ
electronic/JJ
keyboard/NN
instruments/NNS
used/VBN
by/IN
professional/JJ
recording/VBG
musicians/NNS
./.
It/PRP
recently/RB
introduced/VBD
a/DT
line/NN
for/IN
the/DT
home/NN
market/NN
./.
However/RB
,/,
Raymond/NNP
C./NNP
Kurzweil/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/NN
,/,
said/VBD
``/``
The/DT
company/NN
continues/VBZ
to/TO
require/VB
additional/JJ
funding/NN
to/TO
realize/VB
the/DT
potential/NN
of/IN
its/PRP$
technology/NN
./.
''/''
In/IN
the/DT
year/NN
's/POS
first/JJ
six/CD
months/NNS
,/,
Kurzweil/NNP
had/VBD
a/DT
loss/NN
of/IN
$/$
6.9/CD
million/CD
on/IN
sales/NNS
of/IN
$/$
11.2/CD
million/CD
./.
Last/JJ
month/NN
its/PRP$
president/NN
,/,
John/NNP
S./NNP
Donnelly/NNP
,/,
resigned/VBD
citing/VBG
``/``
management/NN
differences/NNS
''/''
with/IN
Mr./NNP
Kurzweil/NNP
./.
Amtech/NNP
Systems/NNP
Inc./NNP
,/,
Tempe/NNP
,/,
Ariz./NNP
,/,
said/VBD
its/PRP$
preliminary/JJ
year-end/JJ
results/NNS
of/IN
operations/NNS
indicate/VBP
``/``
substantial/JJ
improvement/NN
''/''
over/IN
the/DT
previous/JJ
fiscal/JJ
year/NN
./.
Amtech/NNP
,/,
which/WDT
makes/VBZ
an/DT
automated/JJ
process/NN
system/NN
that/WDT
improves/VBZ
the/DT
yields/NNS
of/IN
semiconductor/NN
manufacturers/NNS
,/,
said/VBD
profit/NN
for/IN
the/DT
year/NN
ended/VBN
Sept./NNP
30/CD
rose/VBD
to/TO
more/JJR
than/IN
$/$
800,000/CD
from/IN
$/$
446,000/CD
last/JJ
year/NN
./.
Per-share/JJ
earnings/NNS
are/VBP
estimated/VBN
at/IN
more/JJR
than/IN
40/CD
cents/NNS
,/,
up/RB
from/IN
22/CD
cents/NNS
for/IN
fiscal/JJ
1988/CD
./.
Total/JJ
revenue/NN
is/VBZ
expected/VBN
to/TO
double/VB
to/TO
more/JJR
than/IN
$/$
22/CD
million/CD
from/IN
$/$
10.8/CD
million/CD
./.
Amtech/NNP
,/,
which/WDT
also/RB
provides/VBZ
technical/JJ
temporary/JJ
employment/NN
services/NNS
to/TO
aerospace/JJ
,/,
defense/NN
,/,
computer/NN
and/CC
high-tech/JJ
companies/NNS
in/IN
the/DT
Southwest/NNP
and/CC
Baltimore-Washington/NNP
areas/NNS
,/,
said/VBD
its/PRP$
final/JJ
audited/JJ
results/NNS
are/VBP
due/JJ
in/IN
late/JJ
November/NNP
./.
The/DT
company/NN
attributed/VBD
the/DT
improvement/NN
to/TO
strong/JJ
demand/NN
in/IN
the/DT
semiconductor/NN
equipment/NN
segment/NN
as/RB
well/RB
as/IN
the/DT
acquisition/NN
of/IN
Echelon/NNP
Service/NNP
Co./NNP
and/CC
the/DT
inclusion/NN
of/IN
a/DT
full/JJ
year/NN
's/POS
results/NNS
of/IN
operations/NNS
for/IN
RTS/NNP
Inc./NNP
,/,
compared/VBN
with/IN
seven/CD
months/NNS
'/POS
results/NNS
for/IN
the/DT
prior/JJ
year/NN
./.
LDI/NNP
Corp./NNP
,/,
Cleveland/NNP
,/,
said/VBD
it/PRP
will/MD
offer/VB
$/$
50/CD
million/CD
in/IN
commercial/JJ
paper/NN
backed/VBN
by/IN
lease-rental/JJ
receivables/NNS
./.
The/DT
program/NN
matches/VBZ
funds/NNS
raised/VBN
from/IN
the/DT
sale/NN
of/IN
the/DT
commercial/JJ
paper/NN
with/IN
small/JJ
to/TO
medium-sized/JJ
leases/NNS
./.
LDI/NNP
termed/VBD
the/DT
paper/NN
``/``
non-recourse/JJ
financing/NN
,/,
''/''
meaning/VBG
that/IN
investors/NNS
would/MD
be/VB
repaid/VBN
from/IN
the/DT
lease/NN
receivables/NN
,/,
rather/RB
than/IN
directly/RB
by/IN
LDI/NNP
Corp/NNP
./.
LDI/NNP
leases/VBZ
and/CC
sells/VBZ
data-processing/NN
,/,
telecommunications/NN
and/CC
other/JJ
high-tech/JJ
equipment/NN
./.
SHEVARDNADZE/NNP
ADMITTED/VBD
that/IN
Moscow/NNP
violated/VBD
the/DT
1972/CD
ABM/NNP
treaty/NN
./.
In/IN
a/DT
foreign-policy/NN
address/NN
before/IN
the/DT
Soviet/JJ
legislature/NN
,/,
the/DT
foreign/JJ
minister/NN
conceded/VBD
that/IN
the/DT
radar/NN
station/NN
in/IN
Krasnoyarsk/NNP
breached/VBD
the/DT
superpower/NN
Anti-Ballistic/NNP
Missile/NNP
treaty/NN
and/CC
said/VBD
it/PRP
would/MD
be/VB
dismantled/VBN
./.
Shevardnadze/NNP
said/VBD
it/PRP
took/VBD
Gorbachev/NNP
's/POS
government/NN
four/CD
years/NNS
to/TO
determine/VB
that/IN
the/DT
station/NN
's/POS
location/NN
in/IN
Siberia/NNP
violated/VBD
the/DT
accord/NN
,/,
as/IN
Western/JJ
arms-control/NN
officials/NNS
have/VBP
long/RB
contended/VBN
./.
He/PRP
also/RB
denounced/VBD
Moscow/NNP
's/POS
nine-year/JJ
involvement/NN
in/IN
the/DT
war/NN
in/IN
Afghanistan/NNP
,/,
saying/VBG
it/PRP
involved/VBD
``/``
gross/JJ
violations/NNS
of/IN
.../:
civil/JJ
norms/NNS
and/CC
ethics/NNS
./.
''/''
Secretary/NNP
of/IN
State/NNP
Baker/NNP
,/,
in/IN
his/PRP$
first/JJ
major/JJ
arms-control/NN
speech/NN
,/,
called/VBD
for/IN
a/DT
new/JJ
military/JJ
relationship/NN
with/IN
Moscow/NNP
to/TO
reduce/VB
``/``
first/JJ
strike/NN
''/''
nuclear/JJ
arms/NNS
./.
BAY/NNP
AREA/NN
COMMUTERS/NNS
BATTLED/VBD
earthquake-related/JJ
transportation/NN
snarls/NNS
./.
Travelers/NNS
crowded/VBD
into/IN
subways/NNS
,/,
sat/VBD
in/IN
traffic/NN
jams/NNS
on/IN
major/JJ
freeways/NNS
or/CC
waited/VBD
for/IN
buses/NNS
in/IN
the/DT
rain/NN
,/,
but/CC
the/DT
massive/JJ
gridlock/NN
anticipated/VBN
by/IN
officials/NNS
in/IN
the/DT
San/NNP
Francisco/NNP
Bay/NNP
area/NN
never/RB
materialized/VBD
./.
As/IN
the/DT
death/NN
toll/NN
from/IN
last/JJ
week/NN
's/POS
temblor/NN
climbed/VBD
to/TO
61/CD
,/,
the/DT
condition/NN
of/IN
freeway/NN
survivor/NN
Buck/NNP
Helm/NNP
,/,
who/WP
spent/VBD
four/CD
days/NNS
trapped/VBN
under/IN
rubble/NN
,/,
improved/VBD
,/,
hospital/NN
officials/NNS
said/VBD
./.
Rescue/NN
crews/NNS
,/,
however/RB
,/,
gave/VBD
up/RP
hope/NN
that/IN
others/NNS
would/MD
be/VB
found/VBN
alive/JJ
under/IN
the/DT
collapsed/JJ
roadway/NN
./.
The/DT
House/NNP
Appropriations/NNP
Committee/NNP
approved/VBD
a/DT
$/$
2.85/CD
billion/CD
aid/NN
package/NN
for/IN
the/DT
quake/NN
region/NN
,/,
less/JJR
than/IN
the/DT
$/$
3.8/CD
billion/CD
sought/VBN
by/IN
California/NNP
officials/NNS
./.
Hungary/NNP
declared/VBD
itself/PRP
a/DT
democracy/NN
and/CC
for/IN
the/DT
first/JJ
time/NN
openly/RB
commemorated/VBD
the/DT
anniversary/NN
of/IN
the/DT
1956/CD
anti-Stalinist/JJ
uprising/NN
that/WDT
was/VBD
crushed/VBN
by/IN
the/DT
Soviet/NNP
Union/NNP
./.
A/DT
crowd/NN
estimated/VBN
at/IN
100,000/CD
held/VBD
a/DT
torch-lit/JJ
march/NN
through/IN
Budapest/NNP
as/IN
Acting/NNP
President/NNP
Szuros/NNP
delivered/VBD
a/DT
nationally/RB
televised/VBN
address/NN
rejecting/VBG
communist/JJ
dominance/NN
./.
About/RB
200,000/CD
East/NNP
Germans/NNPS
marched/VBD
in/IN
Leipzig/NNP
and/CC
thousands/NNS
more/JJR
staged/VBD
protests/NNS
in/IN
three/CD
other/JJ
cities/NNS
in/IN
a/DT
fresh/JJ
challenge/NN
to/TO
the/DT
Communist/JJ
leadership/NN
to/TO
introduce/VB
democratic/JJ
freedoms/NNS
./.
In/IN
an/DT
East/NNP
Berlin/NNP
suburb/NN
,/,
meanwhile/RB
,/,
employees/NNS
at/IN
an/DT
electronics/NN
plant/NN
formed/VBD
an/DT
independent/JJ
trade/NN
union/NN
called/VBN
Reform/NNP
,/,
a/DT
worker/NN
spokesman/NN
said/VBD
./.
The/DT
space/NN
shuttle/NN
Atlantis/NNP
landed/VBD
at/IN
a/DT
desert/NN
air/NN
strip/NN
at/IN
Edwards/NNP
Air/NNP
Force/NNP
Base/NNP
,/,
Calif./NNP
,/,
ending/VBG
a/DT
five-day/JJ
mission/NN
that/WDT
dispatched/VBD
the/DT
Jupiter-bound/JJ
Galileo/NNP
space/NN
probe/NN
./.
The/DT
five/CD
astronauts/NNS
returned/VBD
to/TO
Earth/NNP
about/RB
three/CD
hours/NNS
early/RB
because/IN
high/JJ
winds/NNS
had/VBD
been/VBN
predicted/VBN
at/IN
the/DT
landing/NN
site/NN
./.
Fog/NN
shrouded/VBD
the/DT
base/NN
before/IN
touchdown/NN
./.
Explosions/NNS
shook/VBD
a/DT
Phillips/NNP
Petroleum/NNP
Co./NNP
plastics/NNS
plant/NN
near/IN
Pasadena/NNP
,/,
Texas/NNP
,/,
hurling/VBG
debris/NN
and/CC
causing/VBG
a/DT
fire/NN
visible/JJ
from/IN
10/CD
miles/NNS
away/RB
./.
More/JJR
than/IN
100/CD
people/NNS
were/VBD
injured/VBN
,/,
and/CC
a/DT
number/NN
of/IN
workers/NNS
were/VBD
missing/JJ
./.
Parts/NNP
of/IN
the/DT
Houston/NNP
Ship/NNP
Channel/NNP
were/VBD
closed/VBN
./.
The/DT
White/NNP
House/NNP
said/VBD
Bush/NNP
is/VBZ
conferring/VBG
with/IN
leaders/NNS
of/IN
the/DT
Senate/NNP
Intelligence/NNP
Committee/NNP
to/TO
ease/VB
differences/NNS
over/IN
guidelines/NNS
for/IN
CIA/NNP
agents/NNS
./.
The/DT
statement/NN
came/VBD
after/IN
officials/NNS
said/VBD
Bush/NNP
complained/VBD
at/IN
a/DT
private/JJ
meeting/NN
last/JJ
week/NN
that/IN
a/DT
strict/JJ
interpretation/NN
of/IN
a/DT
policy/NN
requires/VBZ
the/DT
U.S./NNP
to/TO
notify/VB
foreign/JJ
dictators/NNS
of/IN
certain/JJ
coup/NN
plots/NNS
./.
Lebanon/NNP
's/POS
Gen./NNP
Aoun/NNP
placed/VBD
Christian/JJ
military/JJ
forces/NNS
on/IN
alert/NN
in/IN
case/NN
of/IN
renewed/JJ
fighting/NN
with/IN
Syrian-backed/JJ
Moslems/NNPS
after/IN
Lebanon/NNP
's/POS
two/CD
main/JJ
Shiite/JJ
militias/NNS
rejected/VBD
an/DT
Arab-sponsored/JJ
peace/NN
accord/NN
./.
The/DT
plan/NN
,/,
approved/VBN
by/IN
lawmakers/NNS
and/CC
rejected/VBN
Sunday/NNP
by/IN
Aoun/NNP
,/,
includes/VBZ
political/JJ
changes/NNS
aimed/VBN
at/IN
ending/VBG
the/DT
14-year-old/JJ
civil/JJ
war/NN
./.
NATO/NNP
defense/NN
ministers/NNS
are/VBP
expected/VBN
to/TO
call/VB
for/IN
a/DT
reduction/NN
in/IN
nuclear/JJ
forces/NNS
in/IN
Europe/NNP
when/WRB
the/DT
alliance/NN
's/POS
nuclear/JJ
planning/NN
group/NN
convenes/VBZ
a/DT
two-day/JJ
session/NN
today/NN
in/IN
Portugal/NNP
./.
The/DT
ministers/NNS
are/VBP
to/TO
reshape/VB
NATO/NNP
's/POS
defenses/NNS
in/IN
Western/NNP
Europe/NNP
amid/IN
fast-paced/JJ
changes/NNS
in/IN
the/DT
Soviet/JJ
bloc/NN
./.
Iran/NNP
's/POS
President/NNP
Rafsanjani/NNP
offered/VBD
to/TO
help/VB
gain/VB
freedom/NN
for/IN
Western/JJ
hostages/NNS
in/IN
Lebanon/NNP
,/,
but/CC
said/VBD
the/DT
assistance/NN
was/VBD
contingent/JJ
on/IN
U.S./NNP
aid/NN
in/IN
resolving/VBG
the/DT
cases/NNS
of/IN
three/CD
Iranians/NNPS
kidnapped/VBN
in/IN
Lebanon/NNP
in/IN
1982/CD
or/CC
the/DT
release/NN
of/IN
frozen/JJ
Iranian/JJ
assets/NNS
./.
Washington/NNP
rejected/VBD
the/DT
bid/NN
,/,
saying/VBG
the/DT
hostages/NNS
were/VBD
n't/RB
linked/VBN
to/TO
other/JJ
issues/NNS
./.
PLO/NNP
leader/NN
Arafat/NNP
asked/VBD
Egypt/NNP
to/TO
seek/VB
clarifications/NNS
from/IN
the/DT
U.S./NNP
on/IN
Secretary/NNP
of/IN
State/NNP
Baker/NNP
's/POS
plan/NN
for/IN
Mideast/JJ
peace/NN
talks/NNS
,/,
an/DT
aide/NN
to/TO
Egyptian/NNP
President/NNP
Mubarak/NNP
said/VBD
./.
The/DT
official/NN
stressed/VBD
that/IN
the/DT
PLO/NNP
has/VBZ
n't/RB
rejected/VBN
the/DT
five-point/JJ
formula/NN
./.
Commonwealth/NN
leaders/NNS
turned/VBD
to/TO
issues/NNS
ranging/VBG
from/IN
drugs/NNS
to/TO
the/DT
world/NN
economy/NN
after/IN
Zimbabwe/NNP
's/POS
President/NNP
Mugabe/NNP
called/VBD
Thatcher/NNP
's/POS
views/NNS
on/IN
South/NNP
Africa/NNP
``/``
despicable/JJ
./.
''/''
At/IN
a/DT
meeting/NN
in/IN
Malaysia/NNP
,/,
Australia/NNP
and/CC
Canada/NNP
also/RB
assailed/VBD
the/DT
British/JJ
prime/JJ
minister/NN
for/IN
criticizing/VBG
the/DT
49-nation/JJ
group/NN
's/POS
call/NN
for/IN
Pretoria/NNP
to/TO
ease/VB
apartheid/NN
./.
CMS/NNP
Enhancements/NNP
Inc./NNP
said/VBD
it/PRP
estimates/VBZ
that/IN
sales/NNS
and/CC
earnings/NNS
for/IN
the/DT
fiscal/JJ
first/JJ
quarter/NN
ended/VBN
Sept./NNP
30/CD
fell/VBD
somewhat/RB
from/IN
the/DT
year-earlier/JJ
period/NN
./.
Jim/NNP
Farooquee/NNP
,/,
chief/JJ
executive/JJ
officer/NN
of/IN
the/DT
Tustin/NNP
,/,
Calif./NNP
,/,
computer/NN
accessories/NNS
supplier/NN
,/,
said/VBD
he/PRP
was/VBD
``/``
comfortable/JJ
''/''
with/IN
analysts/NNS
'/POS
expectations/NNS
that/IN
CMS/NNP
would/MD
earn/VB
between/IN
six/CD
cents/NNS
and/CC
eight/CD
cents/NNS
a/DT
share/NN
on/IN
revenue/NN
of/IN
about/RB
$/$
42/CD
million/CD
./.
A/DT
year/NN
earlier/RBR
,/,
CMS/NNP
posted/VBD
profit/NN
of/IN
$/$
1.1/CD
million/CD
,/,
or/CC
13/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
sales/NNS
of/IN
$/$
48/CD
million/CD
./.
This/DT
time/NN
,/,
there/EX
are/VBP
30/CD
%/JJ
more/JJR
shares/NNS
outstanding/JJ
./.
Mr./NNP
Farooquee/NNP
attributed/VBD
the/DT
decline/NN
to/TO
an/DT
industrywide/JJ
softening/NN
of/IN
demand/NN
for/IN
computer/NN
enhancement/NN
products/NNS
./.
Property/NNP
Capital/NNP
Trust/NNP
said/VBD
it/PRP
dropped/VBD
its/PRP$
plan/NN
to/TO
liquidate/VB
because/IN
it/PRP
was/VBD
n't/RB
able/JJ
to/TO
realize/VB
the/DT
value/NN
it/PRP
had/VBD
expected/VBN
./.
It/PRP
said/VBD
it/PRP
will/MD
buy/VB
back/RP
two/CD
million/CD
shares/NNS
,/,
or/CC
18.4/CD
%/NN
,/,
of/IN
the/DT
total/JJ
outstanding/JJ
,/,
and/CC
continue/VB
operations/NNS
buying/VBG
and/CC
managing/VBG
real/JJ
estate/NN
./.
Property/NNP
Capital/NNP
,/,
which/WDT
is/VBZ
based/VBN
in/IN
Boston/NNP
,/,
had/VBD
told/VBN
shareholders/NNS
it/PRP
expected/VBD
to/TO
distribute/VB
at/IN
least/JJS
$/$
21/CD
a/DT
share/NN
,/,
or/CC
$/$
229/CD
million/CD
,/,
in/IN
a/DT
liquidation/NN
,/,
based/VBN
on/IN
an/DT
expected/JJ
asset/NN
sale/NN
price/NN
of/IN
$/$
290/CD
million/CD
or/CC
more/JJR
./.
The/DT
company/NN
said/VBD
it/PRP
did/VBD
n't/RB
receive/VB
an/DT
offer/NN
it/PRP
wanted/VBD
to/TO
accept/VB
./.
As/IN
a/DT
result/NN
of/IN
dropping/VBG
the/DT
liquidation/NN
plan/NN
,/,
shareholders/NNS
will/MD
have/VB
to/TO
treat/VB
dividends/NNS
received/VBN
this/DT
year/NN
as/IN
ordinary/JJ
income/NN
or/CC
capital/NN
gains/NNS
rather/RB
than/IN
as/IN
tax/NN
free/JJ
returns/NNS
of/IN
capital/NN
,/,
the/DT
company/NN
said/VBD
./.
The/DT
share/NN
repurchase/NN
will/MD
be/VB
funded/VBN
mostly/RB
from/IN
borrowings/NNS
./.
A.H./NNP
Belo/NNP
Corp./NNP
said/VBD
its/PRP$
net/JJ
income/NN
was/VBD
$/$
3.1/CD
million/CD
,/,
or/CC
15/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
third/JJ
quarter/NN
,/,
more/JJR
than/IN
four/CD
times/NNS
its/PRP$
profit/NN
of/IN
$/$
663,000/CD
,/,
or/CC
three/CD
cents/NNS
a/DT
share/NN
,/,
last/JJ
year/NN
./.
Included/VBN
in/IN
the/DT
results/NNS
was/VBD
an/DT
adjustment/NN
to/TO
the/DT
Dallas-based/JJ
company/NN
's/POS
tax/NN
rate/NN
that/WDT
reduced/VBD
net/JJ
income/NN
by/IN
about/RB
10/CD
cents/NNS
a/DT
share/NN
,/,
or/CC
approximately/RB
$/$
2/CD
million/CD
./.
Belo/NNP
said/VBD
it/PRP
increased/VBD
its/PRP$
effective/JJ
tax/NN
rate/NN
to/TO
52/CD
%/NN
from/IN
47/CD
%/NN
to/TO
account/VB
for/IN
potential/JJ
liabilities/NNS
related/VBN
to/TO
an/DT
Internal/NNP
Revenue/NNP
Service/NNP
investigation/NN
of/IN
its/PRP$
tax/NN
returns/NNS
for/IN
the/DT
years/NNS
1984/CD
through/IN
1988/CD
./.
The/DT
newspaper/NN
and/CC
television/NN
owner/NN
said/VBD
it/PRP
expects/VBZ
the/DT
tax/NN
adjustment/NN
to/TO
reduce/VB
its/PRP$
net/JJ
income/NN
for/IN
the/DT
full/JJ
year/NN
by/IN
14/CD
cents/NNS
,/,
or/CC
approximately/RB
$/$
2.8/CD
million/CD
based/VBN
on/IN
its/PRP$
20.2/CD
million/CD
shares/NNS
outstanding/JJ
./.
For/IN
the/DT
third/JJ
quarter/NN
,/,
Belo/NNP
said/VBD
its/PRP$
revenue/NN
increased/VBD
11/CD
%/NN
,/,
to/TO
$/$
101.5/CD
million/CD
from/IN
$/$
91.2/CD
million/CD
last/JJ
year/NN
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
the/DT
company/NN
had/VBD
net/JJ
income/NN
of/IN
$/$
15.1/CD
million/CD
,/,
or/CC
74/CD
cents/NNS
a/DT
share/NN
,/,
up/RB
98/CD
%/NN
from/IN
$/$
7.6/CD
million/CD
,/,
or/CC
38/CD
cents/NNS
a/DT
share/NN
last/JJ
year/NN
./.
Revenue/NN
grew/VBD
almost/RB
8/CD
%/NN
to/TO
$/$
301.9/CD
million/CD
from/IN
$/$
279.8/CD
million/CD
last/JJ
year/NN
./.
A/DT
federal/JJ
judge/NN
granted/VBD
a/DT
temporary/JJ
stay/NN
of/IN
the/DT
California/NNP
Student/NNP
Aid/NNP
Commission/NNP
's/POS
emergency/NN
action/NN
to/TO
stop/VB
guaranteeing/VBG
loans/NNS
for/IN
National/NNP
Technical/NNP
Schools/NNP
,/,
a/DT
unit/NN
of/IN
United/NNP
Education/NNP
&/CC
Software/NNP
Inc/NNP
./.
The/DT
California/NNP
Student/NNP
Aid/NNP
Commission/NNP
took/VBD
the/DT
action/NN
Oct./NNP
15/CD
after/IN
a/DT
government/NN
audit/NN
cited/VBD
National/NNP
Technical/NNP
Schools/NNP
for/IN
having/VBG
courses/NNS
too/RB
short/JJ
to/TO
be/VB
eligible/JJ
for/IN
the/DT
educational/JJ
loan/NN
program/NN
and/CC
having/VBG
a/DT
student/NN
drop-out/JJ
rate/NN
far/RB
in/IN
excess/NN
of/IN
federal/JJ
standards/NNS
,/,
and/CC
it/PRP
alleged/VBD
other/JJ
serious/JJ
violations/NNS
of/IN
law/NN
and/CC
regulations/NNS
./.
United/NNP
Education/NNP
&/CC
Software/NNP
,/,
a/DT
Los/NNP
Angeles/NNP
education/NN
services/NNS
company/NN
,/,
called/VBD
the/DT
commission/NN
's/POS
action/NN
``/``
precipitous/JJ
and/CC
unwarranted/JJ
./.
''/''
The/DT
court/NN
set/VBD
a/DT
hearing/NN
on/IN
the/DT
emergency/NN
action/NN
for/IN
Oct./NNP
30/CD
./.
United/NNP
Education/NNP
&/CC
Software/NNP
posted/VBD
a/DT
$/$
250,000/CD
bond/NN
against/IN
potential/JJ
losses/NNS
to/TO
the/DT
student/NN
aid/NN
commission/NN
and/CC
to/TO
taxpayers/NNS
in/IN
guaranteeing/VBG
any/DT
more/JJR
loans/NNS
for/IN
National/NNP
Technical/NNP
Schools/NNP
students/NNS
prior/RB
to/TO
the/DT
hearing/NN
./.
A/DT
decline/NN
in/IN
Allied-Signal/NNP
Inc./NNP
's/POS
automotive/JJ
business/NN
contributed/VBD
to/TO
flat/JJ
sales/NNS
and/CC
only/RB
slightly/RB
higher/JJR
earnings/NNS
in/IN
the/DT
third/JJ
quarter/NN
./.
Allied-Signal/NNP
reported/VBD
that/DT
net/NN
rose/VBD
1.7/CD
%/NN
to/TO
$/$
121/CD
million/CD
,/,
or/CC
81/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
119/CD
million/CD
,/,
or/CC
80/CD
cents/NNS
a/DT
share/NN
,/,
the/DT
year/NN
earlier/RBR
./.
Sales/NNS
slipped/VBD
1.3/CD
%/NN
to/TO
$/$
2.82/CD
billion/CD
from/IN
$/$
2.86/CD
billion/CD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
the/DT
Morris/NNP
Township/NNP
,/,
N.J.-based/JJ
company/NN
,/,
with/IN
businesses/NNS
in/IN
aerospace/NN
,/,
automotive/JJ
products/NNS
and/CC
engineered/JJ
materials/NNS
,/,
earned/VBD
$/$
413/CD
million/CD
,/,
or/CC
$/$
2.77/CD
cents/NNS
a/DT
share/NN
,/,
up/RB
15/CD
%/NN
from/IN
$/$
359/CD
million/CD
,/,
or/CC
$/$
2.40/CD
a/DT
share/NN
./.
Sales/NNS
eased/VBD
0.2/CD
%/NN
to/TO
$/$
8.88/CD
billion/CD
from/IN
$/$
8.90/CD
billion/CD
./.
Chairman/NNP
Edward/NNP
L./NNP
Hennessy/NNP
Jr./NNP
said/VBD
that/IN
a/DT
drop/NN
in/IN
sales/NNS
of/IN
auto/NN
and/CC
truck/NN
parts/NNS
contributed/VBD
to/TO
lower/JJR
earnings/NNS
in/IN
the/DT
automotive/JJ
unit/NN
./.
He/PRP
also/RB
cited/VBD
unfavorable/JJ
foreign-exchange/NN
rates/NNS
and/CC
a/DT
lower/JJR
tax/NN
rate/NN
./.
Earnings/NNS
for/IN
the/DT
group/NN
declined/VBD
to/TO
$/$
11/CD
million/CD
from/IN
$/$
33/CD
million/CD
last/JJ
year/NN
./.
Earnings/NNS
at/IN
Allied-Signal/NNP
's/POS
aerospace/JJ
business/NN
rose/VBD
to/TO
$/$
55/CD
million/CD
from/IN
$/$
41/CD
million/CD
a/DT
year/NN
ago/RB
,/,
primarily/RB
on/IN
higher/JJR
sales/NNS
and/CC
profit/NN
in/IN
its/PRP$
engines/NNS
and/CC
auxiliary/JJ
power/NN
units/NNS
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
Allied-Signal/NNP
shares/NNS
closed/VBD
at/IN
$/$
35.125/CD
,/,
off/RB
87.5/CD
cents/NNS
./.
The/DT
National/NNP
Highway/NNP
Traffic/NNP
Safety/NNP
Administration/NNP
said/VBD
it/PRP
will/MD
start/VB
enforcing/VBG
stiffer/JJR
regulations/NNS
Jan./NNP
31/CD
for/IN
so-called/JJ
gray-market/JJ
imports/NNS
of/IN
vehicles/NNS
./.
The/DT
regulations/NNS
,/,
required/VBN
under/IN
legislation/NN
enacted/VBN
by/IN
Congress/NNP
last/JJ
year/NN
,/,
will/MD
apply/VB
to/TO
imports/NNS
of/IN
vehicles/NNS
that/WDT
were/VBD
n't/RB
built/VBN
to/TO
meet/VB
U.S./NNP
government/NN
auto/NN
safety/NN
standards/NNS
and/CC
were/VBD
intended/VBN
for/IN
use/NN
in/IN
Europe/NNP
or/CC
elsewhere/RB
abroad/RB
./.
U.S./NNP
officials/NNS
estimated/VBD
that/IN
gray-market/JJ
imports/NNS
total/VBP
about/RB
2,100/CD
units/NNS
a/DT
year/NN
,/,
a/DT
small/JJ
part/NN
of/IN
the/DT
more/JJR
than/IN
three/CD
million/CD
vehicles/NNS
exported/VBN
to/TO
the/DT
U.S./NNP
each/DT
year/NN
./.
According/VBG
to/TO
the/DT
NHTSA/NNP
,/,
the/DT
new/JJ
regulations/NNS
will/MD
prohibit/VB
anyone/NN
other/JJ
than/IN
an/DT
importer/NN
that/WDT
has/VBZ
registered/VBN
with/IN
the/DT
U.S./NNP
government/NN
,/,
or/CC
a/DT
person/NN
who/WP
has/VBZ
a/DT
contract/NN
with/IN
a/DT
registered/JJ
importer/NN
,/,
from/IN
permanently/RB
importing/VBG
a/DT
vehicle/NN
that/WDT
does/VBZ
n't/RB
meet/VB
the/DT
U.S./NNP
auto/NN
safety/NN
standards/NNS
./.
The/DT
registered/JJ
importer/NN
would/MD
be/VB
required/VBN
to/TO
bring/VB
such/JJ
vehicles/NNS
into/IN
compliance/NN
with/IN
the/DT
U.S./NNP
safety/NN
standards/NNS
,/,
compared/VBN
with/IN
the/DT
current/JJ
situation/NN
in/IN
which/WDT
anyone/NN
can/MD
bring/VB
in/IN
such/JJ
vehicles/NNS
and/CC
modify/VB
them/PRP
to/TO
meet/VB
the/DT
U.S./NNP
standards/NNS
./.
Congress/NNP
tightened/VBD
auto/NN
safety/NN
standards/NNS
for/IN
gray-market/JJ
imports/NNS
after/IN
U.S./NNP
auto/NN
dealers/NNS
,/,
including/VBG
franchised/JJ
foreign-car/NN
dealers/NNS
,/,
complained/VBD
that/IN
they/PRP
often/RB
were/VBD
blamed/VBN
when/WRB
the/DT
second/JJ
and/CC
third/JJ
buyers/NNS
of/IN
such/JJ
vehicles/NNS
found/VBD
that/IN
the/DT
cars/NNS
could/MD
n't/RB
meet/VB
U.S./NNP
auto/NN
safety/NN
standards/NNS
./.
Legent/NNP
Corp./NNP
said/VBD
it/PRP
expects/VBZ
to/TO
report/VB
net/JJ
income/NN
between/IN
$/$
6.4/CD
million/CD
and/CC
$/$
6.9/CD
million/CD
,/,
or/CC
between/IN
32/CD
cents/NNS
and/CC
34/CD
cents/NNS
a/DT
share/NN
,/,
for/IN
its/PRP$
fourth/JJ
quarter/NN
ended/VBN
Sept./NNP
30/CD
./.
In/IN
the/DT
year-ago/JJ
quarter/NN
,/,
the/DT
software/NN
developer/NN
reported/VBD
pro/FW
forma/FW
earnings/NNS
of/IN
$/$
4.8/CD
million/CD
,/,
or/CC
24/CD
cents/NNS
a/DT
share/NN
./.
Vienna/NNP
,/,
Va.-based/JJ
Legent/NNP
said/VBD
it/PRP
expects/VBZ
to/TO
post/VB
revenue/NN
for/IN
the/DT
quarter/NN
of/IN
more/JJR
than/IN
$/$
31/CD
million/CD
,/,
compared/VBN
with/IN
pro/FW
forma/FW
revenue/NN
of/IN
$/$
25.2/CD
million/CD
in/IN
1988/CD
./.
For/IN
the/DT
fiscal/JJ
year/NN
,/,
the/DT
company/NN
said/VBD
it/PRP
anticipates/VBZ
reporting/VBG
earnings/NNS
of/IN
$/$
23/CD
million/CD
,/,
or/CC
about/RB
$/$
1.15/CD
a/DT
share/NN
,/,
including/VBG
a/DT
charge/NN
of/IN
about/RB
$/$
5.9/CD
million/CD
,/,
or/CC
22/CD
cents/NNS
a/DT
share/NN
,/,
related/VBN
to/TO
the/DT
merger/NN
that/WDT
created/VBD
Legent/NNP
out/IN
of/IN
Duquesne/NNP
Systems/NNP
Inc./NNP
and/CC
Morino/NNP
Inc./NNP
in/IN
March/NNP
1989/CD
./.
Revenue/NN
for/IN
fiscal/JJ
1989/CD
is/VBZ
expected/VBN
to/TO
exceed/VB
$/$
124/CD
million/CD
./.
Pro/FW
forma/FW
earnings/NNS
for/IN
fiscal/JJ
1988/CD
were/VBD
$/$
19.6/CD
million/CD
,/,
or/CC
99/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
97.2/CD
million/CD
./.
The/DT
company/NN
attributed/VBD
much/JJ
of/IN
the/DT
growth/NN
in/IN
earnings/NNS
to/TO
increased/JJ
demand/NN
for/IN
its/PRP$
systems/NNS
productivity/NN
software/NN
./.
Archive/NNP
Corp./NNP
said/VBD
it/PRP
expects/VBZ
to/TO
report/VB
net/JJ
income/NN
for/IN
its/PRP$
fiscal/JJ
year/NN
ended/VBN
Sept./NNP
29/CD
of/IN
a/DT
record/JJ
$/$
15/CD
million/CD
,/,
or/CC
$/$
1.15/CD
a/DT
share/NN
,/,
up/RB
43/CD
%/NN
from/IN
$/$
10.5/CD
million/CD
,/,
or/CC
80/CD
cents/NNS
a/DT
share/NN
,/,
for/IN
the/DT
prior/JJ
year/NN
./.
The/DT
Costa/NNP
Mesa/NNP
,/,
Calif./NNP
,/,
maker/NN
of/IN
computer/NN
tape/NN
drives/NNS
also/RB
projected/VBD
record/JJ
revenue/NN
for/IN
the/DT
year/NN
of/IN
$/$
181/CD
million/CD
,/,
up/RB
from/IN
$/$
122.7/CD
million/CD
for/IN
the/DT
previous/JJ
year/NN
./.
Archive/NNP
attributed/VBD
the/DT
gains/NNS
to/TO
strong/JJ
demand/NN
for/IN
its/PRP$
products/NNS
,/,
continued/JJ
growth/NN
of/IN
the/DT
reseller/JJ
market/NN
and/CC
the/DT
acquisition/NN
of/IN
Maynard/NNP
Electronics/NNP
in/IN
February/NNP
,/,
which/WDT
accounted/VBD
for/IN
about/RB
14/CD
%/NN
of/IN
the/DT
company/NN
's/POS
revenue/NN
./.
Detrex/NNP
Corp./NNP
said/VBD
a/DT
reserve/NN
it/PRP
is/VBZ
establishing/VBG
to/TO
cover/VB
expected/JJ
pollution/NN
cleanup/NN
costs/NNS
at/IN
an/DT
Ohio/NNP
plant/NN
reduced/VBD
its/PRP$
third-quarter/JJ
net/JJ
income/NN
by/IN
$/$
1.9/CD
million/CD
./.
Detrex/NNP
,/,
which/WDT
has/VBZ
annual/JJ
sales/NNS
of/IN
about/RB
$/$
100/CD
million/CD
,/,
declined/VBD
to/TO
say/VB
if/IN
it/PRP
would/MD
post/VB
a/DT
loss/NN
in/IN
the/DT
third/JJ
quarter/NN
./.
The/DT
Southfield/NNP
,/,
Mich.-based/JJ
company/NN
earned/VBD
$/$
774,000/CD
in/IN
the/DT
quarter/NN
last/JJ
year/NN
./.
Detrex/NNP
is/VBZ
setting/VBG
aside/RP
$/$
3.1/CD
million/CD
for/IN
the/DT
cleanup/NN
,/,
but/CC
said/VBD
the/DT
reserve/NN
reduced/VBD
its/PRP$
quarterly/JJ
income/NN
by/IN
only/RB
$/$
1.9/CD
million/CD
because/IN
of/IN
tax/NN
considerations/NNS
./.
In/IN
addition/NN
,/,
the/DT
manufacturer/NN
said/VBD
it/PRP
signed/VBD
a/DT
consent/NN
decree/NN
with/IN
Ohio/NNP
to/TO
build/VB
a/DT
$/$
1.4/CD
million/CD
pollution-control/JJ
facility/NN
at/IN
the/DT
Ashtabula/NNP
chemical/NN
manufacturing/NN
plant/NN
by/IN
Aug./NNP
1/CD
,/,
1990/CD
./.
Detrex/NNP
said/VBD
it/PRP
is/VBZ
one/CD
of/IN
at/IN
least/JJS
17/CD
companies/NNS
notified/VBN
by/IN
the/DT
Environmental/NNP
Protection/NNP
Agency/NNP
that/IN
they/PRP
may/MD
be/VB
potentially/RB
responsible/JJ
for/IN
cleaning/VBG
up/RP
the/DT
Fields/NNP
Brook/NNP
watershed/NN
near/IN
Detrex/NNP
's/POS
Ashtabula/NN
plant/NN
at/IN
a/DT
total/JJ
cost/NN
the/DT
EPA/NNP
estimates/NNS
at/IN
$/$
48/CD
million/CD
--/:
a/DT
figure/NN
Detrex/NNP
said/VBD
the/DT
companies/NNS
dispute/VBP
./.
First/NNP
Executive/NNP
Corp./NNP
said/VBD
about/RB
96/CD
%/NN
of/IN
the/DT
rights/NNS
to/TO
purchase/VB
its/PRP$
depositary/JJ
shares/NNS
and/CC
warrants/NNS
have/VBP
been/VBN
exercised/VBN
./.
Of/IN
the/DT
17.6/CD
million/CD
rights/NNS
units/NNS
issued/VBN
,/,
just/RB
under/IN
17/CD
million/CD
were/VBD
exercised/VBN
before/IN
the/DT
Oct./NNP
10/CD
expiration/NN
of/IN
the/DT
offering/NN
,/,
the/DT
insurance/NN
holding/NN
company/NN
said/VBD
./.
Remaining/VBG
units/NNS
will/MD
be/VB
sold/VBN
to/TO
the/DT
underwriters/NNS
,/,
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
and/CC
Kidder/NNP
,/,
Peabody/NNP
&/CC
Co./NNP
,/,
which/WDT
will/MD
also/RB
purchase/VB
an/DT
over-allotment/NN
of/IN
2.3/CD
million/CD
additional/JJ
units/NNS
./.
First/NNP
Executive/NNP
said/VBD
the/DT
offering/NN
will/MD
raise/VB
about/RB
$/$
299/CD
million/CD
--/:
minus/CC
underwriting/NN
fees/NNS
and/CC
other/JJ
expenses/NNS
--/:
that/IN
the/DT
company/NN
plans/VBZ
to/TO
use/VB
to/TO
write/VB
new/JJ
life/NN
insurance/NN
and/CC
annuity/NN
business/NN
./.
In/IN
addition/NN
,/,
analysts/NNS
have/VBP
viewed/VBN
the/DT
rights/NNS
offering/NN
as/IN
a/DT
takeover/NN
defense/NN
that/WDT
prospectively/RB
balloons/VBZ
the/DT
number/NN
of/IN
shares/NNS
outstanding/JJ
./.
Each/DT
of/IN
the/DT
units/NNS
consists/VBZ
of/IN
two/CD
warrants/NNS
,/,
each/DT
of/IN
which/WDT
could/MD
be/VB
used/VBN
to/TO
purchase/VB
a/DT
half-share/NN
of/IN
common/JJ
stock/NN
,/,
and/CC
one/CD
depositary/JJ
preference/NN
share/NN
./.
Depositary/JJ
shares/NNS
are/VBP
convertible/JJ
into/IN
common/JJ
stock/NN
on/IN
a/DT
1-to-1/JJ
basis/NN
./.
Currently/RB
,/,
the/DT
company/NN
has/VBZ
about/RB
88.1/CD
million/CD
common/JJ
shares/NNS
outstanding/JJ
./.
In/IN
over-the-counter/JJ
trading/NN
Monday/NNP
,/,
the/DT
stock/NN
closed/VBD
at/IN
$/$
10.625/CD
,/,
off/RB
37.5/CD
cents/NNS
./.
UNITED/NNP
AIR/NNP
'S/POS
PARENT/NN
quashed/VBD
any/DT
prospects/NNS
for/IN
an/DT
immediate/JJ
revival/NN
of/IN
the/DT
labor-management/JJ
buy-out/NN
,/,
saying/VBG
UAL/NNP
should/MD
remain/VB
independent/JJ
for/IN
now/RB
./.
Also/RB
,/,
UAL/NNP
Chairman/NNP
Stephen/NNP
Wolf/NNP
pulled/VBD
out/IN
of/IN
the/DT
buy-out/NN
effort/NN
to/TO
focus/VB
on/IN
running/VBG
the/DT
company/NN
./.
The/DT
two/CD
developments/NNS
leave/VBP
the/DT
airline/NN
with/IN
several/JJ
problems/NNS
,/,
including/VBG
an/DT
unsettled/JJ
labor/NN
situation/NN
./.
Stock/NN
prices/NNS
fell/VBD
and/CC
bonds/NNS
rose/VBD
as/IN
worries/NNS
mounted/VBD
about/IN
the/DT
economy/NN
and/CC
the/DT
junk/NN
bond/NN
market/NN
./.
The/DT
Dow/NNP
Jones/NNP
industrials/NNS
sank/VBD
26.23/CD
points/NNS
,/,
to/TO
2662.91/CD
./.
The/DT
dollar/NN
also/RB
declined/VBD
./.
The/DT
turmoil/NN
in/IN
junk/NN
bonds/NNS
may/MD
last/VB
for/IN
years/NNS
,/,
investors/NNS
and/CC
traders/NNS
say/VBP
./.
Even/RB
Drexel/NNP
is/VBZ
pulling/VBG
back/RP
./.
Santa/NNP
Fe/NNP
Pacific/NNP
plans/VBZ
to/TO
sell/VB
20/CD
%/NN
of/IN
its/PRP$
large/JJ
real/JJ
estate/NN
unit/NN
to/TO
a/DT
California/NNP
pension/NN
fund/NN
for/IN
$/$
400/CD
million/CD
and/CC
spin/VB
the/DT
rest/NN
off/RP
to/TO
shareholders/NNS
./.
The/DT
proposal/NN
values/VBZ
the/DT
company/NN
's/POS
real/JJ
estate/NN
operation/NN
at/IN
$/$
2/CD
billion/CD
./.
Time/NNP
Warner/NNP
reported/VBD
a/DT
$/$
176/CD
million/CD
loss/NN
for/IN
the/DT
third/JJ
quarter/NN
,/,
reflecting/VBG
the/DT
cost/NN
of/IN
the/DT
recent/JJ
merger/NN
and/CC
a/DT
method/NN
of/IN
accounting/VBG
for/IN
the/DT
deal/NN
./.
Thrifts/NNS
continued/VBD
to/TO
shed/VB
assets/NNS
in/IN
August/NNP
,/,
mainly/RB
to/TO
comply/VB
with/IN
stiffer/JJR
capital/NN
rules/NNS
under/IN
the/DT
S&L/NN
bailout/NN
law/NN
./.
Also/RB
,/,
withdrawals/NNS
exceeded/VBD
deposits/NNS
by/IN
$/$
5.1/CD
billion/CD
in/IN
the/DT
month/NN
./.
Exxon/NNP
's/POS
profit/NN
fell/VBD
9/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
hurt/VBN
by/IN
sagging/VBG|JJ
results/NNS
at/IN
two/CD
of/IN
its/PRP$
three/CD
main/JJ
businesses/NNS
./.
Phillips/NNP
and/CC
Arco/NNP
posted/VBD
declines/NNS
./.
Ashland/NNP
had/VBD
a/DT
loss/NN
./.
Amerada/NNP
Hess/NNP
and/CC
Occidental/NNP
Petroleum/NNP
had/VBD
gains/NNS
./.
Ogilvy/NNP
's/POS
chairman/NN
,/,
Kenneth/NNP
Roman/NNP
,/,
is/VBZ
leaving/VBG
to/TO
take/VB
a/DT
top/JJ
post/NN
at/IN
American/NNP
Express/NNP
./.
His/PRP$
resignation/NN
follows/VBZ
a/DT
hostile/JJ
takeover/NN
of/IN
the/DT
ad/NN
agency/NN
in/IN
May/NNP
by/IN
WPP/NNP
of/IN
Britain/NNP
./.
The/DT
Justice/NNP
Department/NNP
took/VBD
steps/NNS
that/WDT
could/MD
restrict/VB
the/DT
use/NN
by/IN
prosecutors/NNS
of/IN
criminal/JJ
racketeering/NN
charges/NNS
against/IN
white-collar/JJ
defendants/NNS
./.
Shearson/NNP
was/VBD
sued/VBN
by/IN
money/NN
manager/NN
George/NNP
Soros/NNP
,/,
who/WP
claimed/VBD
one/CD
of/IN
his/PRP$
funds/NNS
was/VBD
defrauded/VBN
out/IN
of/IN
$/$
60/CD
million/CD
during/IN
stock-index/NN
futures/NNS
trading/NN
just/RB
after/IN
the/DT
1987/CD
crash/NN
./.
Drexel/NNP
's/POS
efforts/NNS
to/TO
settle/VB
its/PRP$
legal/JJ
troubles/NNS
are/VBP
being/VBG
resisted/VBN
by/IN
at/IN
least/JJS
10/CD
states/NNS
./.
Some/DT
may/MD
try/VB
to/TO
revoke/VB
the/DT
firm/NN
's/POS
license/NN
to/TO
sell/VB
securities/NNS
./.
Prime/NNP
Computer/NNP
plans/VBZ
to/TO
dismiss/VB
20/CD
%/NN
of/IN
its/PRP$
work/NN
force/NN
to/TO
cut/VB
costs/NNS
following/VBG
its/PRP$
recent/JJ
leveraged/JJ
buy-out/NN
./.
The/DT
action/NN
renews/VBZ
concern/NN
about/IN
buyouts/NNS
in/IN
high-tech/JJ
industries/NNS
./.
Paribas/NNP
plans/VBZ
a/DT
bid/NN
for/IN
another/DT
big/JJ
French/JJ
financial/JJ
and/CC
industrial/JJ
firm/NN
,/,
Navigation/NNP
Mixte/NNP
,/,
a/DT
sign/NN
Europe/NNP
's/POS
takeover/NN
fever/NN
has/VBZ
n't/RB
cooled/VBN
./.
Qintex/NNP
Australia/NNP
unveiled/VBD
plans/NNS
to/TO
restructure/VB
and/CC
sell/VB
assets/NNS
to/TO
try/VB
to/TO
ease/VB
its/PRP$
financial/JJ
problems/NNS
./.
Union/NNP
Carbide/NNP
's/POS
earnings/NNS
plunged/VBD
35/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
reflecting/VBG
weakness/NN
in/IN
the/DT
company/NN
's/POS
core/JJ
chemicals/NNS
and/CC
plastics/NNS
businesses/NNS
./.
Japan/NNP
's/POS
Daiwa/NNP
Securities/NNP
named/VBD
Masahiro/NNP
Dozen/NNP
president/NN
./.
The/DT
rapid/JJ
advance/NN
of/IN
the/DT
52-year-old/JJ
executive/NN
surprised/VBD
many/JJ
at/IN
the/DT
company/NN
./.
Markets/NNS
--/:
Stocks/NNS
:/:
Volume/NN
135,860,000/CD
shares/NNS
./.
Dow/NNP
Jones/NNP
industrials/NNS
2662.91/CD
,/,
off/RB
26.23/CD
;/:
transportation/NN
1236.66/CD
,/,
up/RB
5.86/CD
;/:
utilities/NNS
215.35/CD
,/,
off/RB
0.13/CD
./.
Bonds/NNS
:/:
Shearson/NNP
Lehman/NNP
Hutton/NNP
Treasury/NNP
index/NN
3411.08/CD
,/,
up/RB
Commodities/NNS
:/:
Dow/NNP
Jones/NNP
futures/NNS
index/NN
129.49/CD
,/,
off/RB
0.13/CD
;/:
spot/NN
index/NN
131.64/CD
,/,
up/RB
0.30/CD
./.
Dollar/NN
:/:
141.90/CD
yen/NN
,/,
off/RB
0.53/CD
;/:
1.8470/CD
marks/NNS
,/,
off/RB
0.0108/CD
./.
The/DT
Justice/NNP
Department/NNP
has/VBZ
revised/VBN
certain/JJ
internal/JJ
guidelines/NNS
and/CC
clarified/VBN
others/NNS
in/IN
a/DT
move/NN
that/WDT
could/MD
restrict/VB
the/DT
use/NN
of/IN
criminal/JJ
racketeering/NN
charges/NNS
against/IN
white-collar/JJ
defendants/NNS
./.
The/DT
most/RBS
significant/JJ
changes/NNS
in/IN
department/NN
policy/NN
are/VBP
new/JJ
requirements/NNS
that/IN
federal/JJ
prosecutors/NNS
avoid/VB
disrupting/VBG
``/``
the/DT
normal/JJ
business/NN
functions/NNS
''/''
of/IN
companies/NNS
charged/VBN
under/IN
the/DT
racketeering/NN
law/NN
,/,
a/DT
senior/JJ
department/NN
official/NN
said/VBD
./.
Another/DT
important/JJ
revision/NN
of/IN
department/NN
policy/NN
is/VBZ
a/DT
new/JJ
guideline/NN
warning/VBG
prosecutors/NNS
``/``
not/RB
to/TO
take/VB
steps/NNS
that/WDT
would/MD
harm/VB
innocent/JJ
third/JJ
parties/NNS
''/''
in/IN
a/DT
case/NN
brought/VBN
under/IN
the/DT
racketeering/NN
law/NN
,/,
the/DT
official/NN
,/,
David/NNP
Runkel/NNP
,/,
said/VBD
./.
The/DT
department/NN
distributed/VBD
the/DT
revisions/NNS
and/CC
clarifications/NNS
to/TO
U.S./NNP
attorneys/NNS
around/IN
the/DT
country/NN
this/DT
summer/NN
as/IN
part/NN
of/IN
a/DT
routine/JJ
process/NN
of/IN
updating/VBG
prosecutorial/JJ
guidelines/NNS
,/,
Mr./NNP
Runkel/NNP
said/VBD
./.
The/DT
changes/NNS
apply/VBP
to/TO
prosecutions/NNS
brought/VBN
under/IN
the/DT
Racketeer/NNP
Influenced/NNP
and/CC
Corrupt/NNP
Organizations/NNP
law/NN
./.
Under/IN
that/DT
law/NN
,/,
defendants/NNS
who/WP
allegedly/RB
commit/VBP
a/DT
pattern/NN
of/IN
crimes/NNS
by/IN
means/NNS
of/IN
a/DT
``/``
criminal/JJ
enterprise/NN
''/''
may/MD
be/VB
charged/VBN
with/IN
racketeering/VBG
and/CC
forced/VBD
to/TO
forfeit/VB
the/DT
proceeds/NNS
of/IN
the/DT
enterprise/NN
./.
The/DT
RICO/NNP
law/NN
has/VBZ
come/VBN
under/IN
criticism/NN
from/IN
some/DT
defendants/NNS
and/CC
defense/NN
lawyers/NNS
./.
They/PRP
argue/VBP
that/IN
the/DT
rights/NNS
of/IN
RICO/NNP
defendants/NNS
and/CC
third/JJ
parties/NNS
not/RB
named/VBN
in/IN
RICO/NNP
indictments/NNS
have/VBP
been/VBN
unfairly/RB
damaged/VBN
./.
The/DT
department/NN
's/VBZ
most/RBS
significant/JJ
clarification/NN
of/IN
existing/JJ
RICO/NNP
policy/NN
is/VBZ
a/DT
directive/NN
to/TO
prosecutors/NNS
that/IN
they/PRP
should/MD
seek/VB
to/TO
seize/VB
assets/NNS
from/IN
defendants/NNS
``/``
in/IN
proportion/NN
''/''
to/TO
the/DT
nature/NN
of/IN
the/DT
alleged/JJ
offense/NN
,/,
Mr./NNP
Runkel/NNP
said/VBD
./.
``/``
That/DT
means/VBZ
that/IN
if/IN
the/DT
offense/NN
deals/VBZ
with/IN
one/CD
part/NN
of/IN
the/DT
business/NN
,/,
you/PRP
do/VBP
n't/RB
attempt/VB
to/TO
seize/VB
the/DT
whole/JJ
business/NN
;/:
you/PRP
attempt/VBP
to/TO
seize/VB
assets/NNS
related/VBN
to/TO
the/DT
crime/NN
,/,
''/''
he/PRP
explained/VBD
./.
In/IN
general/JJ
,/,
the/DT
thrust/NN
of/IN
the/DT
department/NN
's/POS
directive/NN
is/VBZ
to/TO
encourage/VB
prosecutors/NNS
to/TO
limit/VB
pretrial/JJ
asset/NN
seizures/NNS
if/IN
there/EX
are/VBP
less/RBR
intrusive/JJ
means/NNS
of/IN
protecting/VBG
assets/NNS
the/DT
government/NN
may/MD
subsequently/RB
be/VB
able/JJ
to/TO
seize/VB
after/IN
a/DT
conviction/NN
,/,
Mr./NNP
Runkel/NNP
said/VBD
./.
It/PRP
was/VBD
the/DT
kind/NN
of/IN
snubbing/NN
rarely/RB
seen/VBN
within/IN
the/DT
Congress/NNP
,/,
let/VBD
alone/RB
within/IN
the/DT
same/JJ
party/NN
./.
Sen./NNP
Alan/NNP
Cranston/NNP
trekked/VBD
over/IN
to/TO
the/DT
House/NNP
side/NN
of/IN
Capitol/NNP
Hill/NNP
a/DT
few/JJ
days/NNS
ago/RB
and/CC
volunteered/VBD
his/PRP$
testimony/NN
to/TO
fellow/JJ
Democrat/NNP
Rep./NNP
Henry/NNP
Gonzalez/NNP
./.
It/PRP
was/VBD
offered/VBN
as/IN
an/DT
expression/NN
of/IN
cooperation/NN
to/TO
Mr./NNP
Gonzalez/NNP
,/,
who/WP
is/VBZ
investigating/VBG
the/DT
$/$
2.5/CD
billion/CD
failure/NN
of/IN
Lincoln/NNP
Savings/NNP
&/CC
Loan/NNP
Association/NNP
./.
But/CC
instead/RB
of/IN
thanks/NNS
,/,
Sen./NNP
Cranston/NNP
was/VBD
treated/VBN
with/IN
cool/JJ
formality/NN
./.
``/``
Every/DT
witness/NN
receives/VBZ
a/DT
formal/JJ
subpoena/NN
,/,
''/''
Rep./NNP
Gonzalez/NNP
told/VBD
him/PRP
./.
Seldom/RB
have/VBP
House/NNP
hearings/NNS
caused/VBN
so/RB
much/JJ
apprehension/NN
in/IN
the/DT
Senate/NNP
,/,
where/WRB
California/NNP
Sen./NNP
Cranston/NNP
and/CC
four/CD
other/JJ
senators/NNS
were/VBD
already/RB
writhing/VBG
in/IN
the/DT
glare/NN
of/IN
unfavorable/JJ
publicity/NN
over/IN
the/DT
alleged/JJ
looting/NN
of/IN
Lincoln/NNP
by/IN
their/PRP$
friend/NN
and/CC
political/JJ
benefactor/NN
,/,
Charles/NNP
Keating/NNP
Jr./NNP
,/,
principal/JJ
stockholder/NN
of/IN
Lincoln/NNP
's/POS
parent/NN
company/NN
,/,
American/NNP
Continental/NNP
Corp./NNP
of/IN
Phoenix/NNP
,/,
Ariz/NNP
./.
At/IN
the/DT
first/JJ
day/NN
of/IN
the/DT
House/NNP
Banking/NNP
Committee/NNP
's/POS
hearings/NNS
last/JJ
week/NN
,/,
William/NNP
Seidman/NNP
,/,
chairman/NN
of/IN
the/DT
Resolution/NNP
Trust/NNP
Corp./NNP
,/,
the/DT
federal/JJ
agency/NN
created/VBN
to/TO
sell/VB
sick/JJ
thrifts/NNS
,/,
said/VBD
the/DT
agency/NN
is/VBZ
investigating/VBG
whether/IN
Lincoln/NNP
made/VBD
illegal/JJ
political/JJ
contributions/NNS
./.
Mr./NNP
Keating/NNP
arranged/VBD
nearly/RB
$/$
1/CD
million/CD
in/IN
donations/NNS
to/TO
Sen./NNP
Cranston/NNP
and/CC
his/PRP$
various/JJ
political/JJ
causes/NNS
,/,
and/CC
hundreds/NNS
of/IN
thousands/NNS
more/JJR
to/TO
other/JJ
lawmakers/NNS
./.
Future/JJ
witnesses/NNS
include/VBP
a/DT
former/JJ
federal/JJ
S&L/NN
regulator/NN
who/WP
has/VBZ
accused/VBN
the/DT
five/CD
senators/NNS
of/IN
attempting/VBG
to/TO
``/``
subvert/VB
''/''
the/DT
regulatory/JJ
process/NN
by/IN
intervening/VBG
on/IN
behalf/NN
of/IN
Mr./NNP
Keating/NNP
./.
Unlike/IN
many/JJ
lawmakers/NNS
,/,
Chairman/NNP
Gonzalez/NNP
says/VBZ
he/PRP
considers/VBZ
intervening/VBG
with/IN
regulators/NNS
to/TO
be/VB
improper/JJ
./.
``/``
When/WRB
you/PRP
reach/VBP
a/DT
point/NN
where/WRB
a/DT
policy-making/JJ
body/NN
is/VBZ
trying/VBG
to/TO
shape/VB
administrative/JJ
decisions/NNS
,/,
then/RB
that/DT
's/VBZ
a/DT
no-no/NN
in/IN
my/PRP$
book/NN
,/,
''/''
the/DT
Texas/NNP
lawmaker/NN
says/VBZ
./.
And/CC
he/PRP
has/VBZ
attached/VBN
himself/PRP
to/TO
the/DT
Lincoln/NNP
story/NN
tenaciously/RB
./.
``/``
Unless/IN
the/DT
questions/NNS
are/VBP
answered/VBN
,/,
I/PRP
will/MD
keep/VB
on/RP
going/VBG
./.
''/''
Lawmakers/NNS
often/RB
are/VBP
reluctant/JJ
to/TO
embarrass/VB
colleagues/NNS
,/,
even/RB
those/DT
of/IN
opposing/JJ
political/JJ
parties/NNS
./.
In/IN
the/DT
recent/JJ
Housing/NNP
and/CC
Urban/NNP
Development/NNP
Department/NNP
scandal/NN
,/,
for/IN
example/NN
,/,
Rep./NNP
Thomas/NNP
Lantos/NNP
,/,
the/DT
California/NNP
Democrat/NNP
who/WP
led/VBD
the/DT
hearings/NNS
,/,
tiptoed/VBD
through/IN
embarrassing/JJ
disclosures/NNS
about/IN
HUD/NNP
grants/NNS
secured/VBN
by/IN
Sen./NNP
Alfonse/NNP
D'Amato/NNP
,/,
a/DT
New/NNP
York/NNP
Republican/NNP
./.
But/CC
Chairman/NNP
Gonzalez/NNP
is/VBZ
a/DT
genuine/JJ
maverick/NN
./.
He/PRP
comes/VBZ
from/IN
the/DT
same/JJ
political/JJ
line/NN
as/IN
Wright/NNP
Patman/NNP
,/,
a/DT
bank-baiting/JJ
Texas/NNP
populist/NN
who/WP
chaired/VBD
the/DT
Banking/NNP
Committee/NNP
until/IN
1974/CD
./.
Mr./NNP
Gonzalez/NNP
is/VBZ
also/RB
a/DT
stickler/NN
for/IN
ethical/JJ
standards/NNS
who/WP
refuses/VBZ
to/TO
accept/VB
honorariums/NNS
and/CC
who/WP
believes/VBZ
in/IN
conducting/VBG
official/JJ
business/NN
in/IN
the/DT
open/NN
./.
Early/RB
in/IN
his/PRP$
political/JJ
career/NN
,/,
as/IN
a/DT
city/NN
councilman/NN
in/IN
San/NNP
Antonio/NNP
,/,
he/PRP
walked/VBD
out/IN
of/IN
a/DT
meeting/NN
when/WRB
political/JJ
supporters/NNS
asked/VBD
that/IN
the/DT
police/NN
chief/NN
be/VB
replaced/VBN
,/,
denouncing/VBG
the/DT
closed-door/JJ
affair/NN
publicly/RB
as/IN
a/DT
``/``
bat-roost/JJ
meeting/NN
./.
''/''
The/DT
immediate/JJ
target/NN
of/IN
Rep./NNP
Gonzalez/NNP
's/POS
inquiry/NN
is/VBZ
Danny/NNP
Wall/NNP
,/,
chairman/NN
of/IN
the/DT
Office/NNP
of/IN
Thrift/NNP
Supervision/NNP
./.
As/IN
the/DT
principal/JJ
regulator/NN
of/IN
the/DT
thrift/NN
industry/NN
,/,
Mr./NNP
Wall/NNP
delayed/VBD
seizing/VBG
Lincoln/NNP
S&L/NNP
for/IN
more/RBR
than/IN
two/CD
years/NNS
after/IN
his/PRP$
staff/NN
told/VBD
him/PRP
that/IN
the/DT
California/NNP
thrift/NN
was/VBD
insolvent/JJ
and/CC
that/IN
potential/JJ
losses/NNS
to/TO
taxpayers/NNS
were/VBD
growing/VBG
rapidly/RB
./.
Rep./NNP
Gonzalez/NNP
seems/VBZ
primed/VBN
to/TO
lash/VB
out/RP
at/IN
Mr./NNP
Wall/NNP
when/WRB
hearings/NNS
resume/VBP
Thursday/NNP
with/IN
testimony/NN
by/IN
two/CD
federal/JJ
regulators/NNS
from/IN
San/NNP
Francisco/NNP
,/,
William/NNP
Black/NNP
and/CC
Mike/NNP
Patriarca/NNP
./.
Mr./NNP
Wall/NNP
relieved/VBD
them/PRP
of/IN
responsibility/NN
for/IN
supervising/VBG
Lincoln/NNP
in/IN
1988/CD
./.
Mr./NNP
Gonzalez/NNP
expressed/VBD
concern/NN
over/IN
a/DT
report/NN
that/IN
the/DT
two/CD
had/VBD
been/VBN
summoned/VBN
to/TO
Washington/NNP
by/IN
Mr./NNP
Wall/NNP
last/JJ
week/NN
to/TO
discuss/VB
their/PRP$
testimony/NN
in/IN
advance/NN
./.
``/``
I/PRP
think/VBP
he/PRP
is/VBZ
trying/VBG
to/TO
improperly/RB
influence/VB
a/DT
witness/NN
,/,
and/CC
by/IN
God/NNP
I/PRP
'm/VBP
not/RB
going/VBG
to/TO
tolerate/VB
it/PRP
,/,
''/''
he/PRP
says/VBZ
./.
Mr./NNP
Wall/NNP
,/,
however/RB
,/,
is/VBZ
a/DT
self-proclaimed/JJ
``/``
child/NN
of/IN
the/DT
Senate/NNP
''/''
and/CC
former/JJ
staff/NN
director/NN
of/IN
its/PRP$
Banking/NNP
Committee/NNP
./.
An/DT
inquiry/NN
into/IN
his/PRP$
handling/NN
of/IN
Lincoln/NNP
S&L/NNP
inevitably/RB
will/MD
drag/VB
in/RP
Sen./NNP
Cranston/NNP
and/CC
the/DT
four/CD
others/NNS
,/,
Sens./NNP
Dennis/NNP
DeConcini/NNP
D./NNP
,/,
Ariz./NNP
John/NNP
McCain/NNP
R./NNP
,/,
Ariz./NNP
John/NNP
Glenn/NNP
D./NNP
,/,
Ohio/NNP
Donald/NNP
Riegle/NNP
D./NNP
,/,
Mich/NNP
./.
They/PRP
all/DT
attended/VBD
a/DT
meeting/NN
in/IN
April/NNP
1987/CD
questioning/VBG
why/WRB
a/DT
federal/JJ
audit/NN
of/IN
Lincoln/NNP
S&L/NNP
had/VBD
dragged/VBN
on/RB
for/IN
two/CD
years/NNS
./.
``/``
I/PRP
'm/VBP
certain/JJ
that/IN
in/IN
the/DT
course/NN
of/IN
the/DT
hearings/NNS
the/DT
names/NNS
the/DT
senators/NNS
Mr./NNP
Gonzalez/NNP
says/VBZ
./.
This/DT
is/VBZ
raising/VBG
eyebrows/NNS
./.
``/``
When/WRB
I/PRP
first/RB
got/VBD
a/DT
glimpse/NN
at/IN
the/DT
witness/NN
list/NN
,/,
I/PRP
could/MD
n't/RB
believe/VB
that/IN
they/PRP
were/VBD
going/VBG
to/TO
go/VB
ahead/RB
and/CC
do/VB
this/DT
,/,
''/''
says/VBZ
Michael/NNP
Waldman/NNP
,/,
director/NN
of/IN
Congress/NNP
Watch/NNP
,/,
a/DT
consumer/NN
group/NN
./.
``/``
There/EX
are/VBP
some/DT
witnesses/NNS
who/WP
will/MD
be/VB
forced/VBN
to/TO
testify/VB
about/IN
their/PRP$
meetings/NNS
with/IN
senators/NNS
./.
''/''
And/CC
a/DT
Democratic/JJ
aide/NN
to/TO
a/DT
Banking/NNP
Committee/NNP
member/NN
remarks/VBZ
,/,
``/``
I/PRP
too/RB
am/VBP
astounded/JJ
by/IN
it/PRP
,/,
because/IN
Gonzalez/NNP
has/VBZ
certainly/RB
placed/VBN
a/DT
lot/NN
of/IN
Democratic/JJ
senators/NNS
in/IN
a/DT
very/RB
bad/JJ
position/NN
./.
''/''
All/PDT
the/DT

senators/NNS
say/VBP
they/PRP
merely/RB
were/VBD
trying/VBG
to/TO
ensure/VB
fairness/NN
for/IN
a/DT
constituent/NN
./.
Mr./NNP
Keating/NNP
lives/VBZ
in/IN
Phoenix/NNP
,/,
and/CC
the/DT
California/NNP
thrift/NN
's/POS
parent/NN
is/VBZ
an/DT
Ohio-chartered/JJ
corporation/NN
with/IN
holdings/NNS
in/IN
Michigan/NNP
./.
Chairman/NNP
Gonzalez/NNP
expresses/VBZ
sympathy/NN
for/IN
Sen./NNP
Riegle/NNP
,/,
his/PRP$
counterpart/NN
as/IN
chairman/NN
of/IN
the/DT
Senate/NNP
Banking/NNP
Committee/NNP
./.
``/``
He/PRP
's/VBZ
wise/JJ
,/,
he/PRP
's/VBZ
good/JJ
and/CC
I/PRP
know/VBP
he/PRP
's/VBZ
an/DT
honest/JJ
man/NN
,/,
''/''
the/DT
Texan/NNP
says/VBZ
./.
But/CC
at/IN
the/DT
same/JJ
time/NN
,/,
Mr./NNP
Gonzalez/NNP
has/VBZ
n't/RB
forgotten/VBN
a/DT
confrontation/NN
over/IN
Mr./NNP
Wall/NNP
during/IN
House-Senate/NNP
negotiations/NNS
over/IN
S&L/NN
bailout/NN
legislation/NN
during/IN
the/DT
summer/NN
./.
The/DT
Senate/NNP
negotiators/NNS
included/VBD
Sens./NNP
Cranston/NNP
and/CC
Riegle/NNP
and/CC
Mr./NNP
Wall/NNP
's/POS
principal/JJ
sponsor/NN
,/,
Republican/NNP
Sen./NNP
Jake/NNP
Garn/NNP
of/IN
Utah/NNP
./.
They/PRP
were/VBD
willing/JJ
to/TO
trade/VB
important/JJ
provisions/NNS
in/IN
the/DT
bailout/NN
legislation/NN
to/TO
preserve/VB
Mr./NNP
Wall/NNP
's/POS
job/NN
and/CC
to/TO
avoid/VB
a/DT
reconfirmation/NN
hearing/NN
in/IN
which/WDT
he/PRP
would/MD
be/VB
called/VBN
upon/IN
to/TO
testify/VB
about/IN
Lincoln/NNP
S&L/NNP
./.
Most/RBS
importantly/RB
,/,
the/DT
Senate/NNP
traded/VBD
away/RP
the/DT
Bush/NNP
administration/NN
's/POS
controversial/JJ
plan/NN
to/TO
finance/VB
the/DT
bailout/NN
,/,
which/WDT
was/VBD
partly/RB
reinstated/VBN
later/RB
./.
At/IN
the/DT
time/NN
,/,
Mr./NNP
Gonzalez/NNP
said/VBD
several/JJ
senators/NNS
told/VBD
him/PRP
that/IN
they/PRP
``/``
could/MD
get/VB
some/DT
roadblocks/NNS
out/IN
of/IN
the/DT
way/NN
if/IN
there/EX
could/MD
be/VB
some/DT
understanding/NN
on/IN
Garn/NNP
's/POS
insistence/NN
on/IN
Wall/NNP
./.
''/''
Now/RB
Mr./NNP
Gonzalez/NNP
is/VBZ
holding/VBG
the/DT
equivalent/NN
of/IN
reconfirmation/NN
hearings/NNS
anyway/RB
,/,
under/IN
the/DT
guise/NN
of/IN
the/DT
Lincoln/NNP
investigation/NN
./.
``/``
In/IN
a/DT
way/NN
,/,
that/DT
's/VBZ
what/WP
this/DT
is/VBZ
,/,
''/''
Mr./NNP
Gonzalez/NNP
concedes/VBZ
./.
Even/RB
some/DT
House/NNP
Banking/NNP
Committee/NNP
members/NNS
could/MD
suffer/VB
from/IN
the/DT
fallout/NN
./.
Mr./NNP
Keating/NNP
raised/VBD
$/$
20,000/CD
for/IN
Rep./NNP
Doug/NNP
Barnard/NNP
's/POS
1986/CD
re-election/NN
campaign/NN
while/IN
the/DT
Georgia/NNP
Democrat/NNP
was/VBD
taking/VBG
his/PRP$
side/NN
against/IN
regulators/NNS
who/WP
wanted/VBD
to/TO
curb/VB
risky/JJ
investments/NNS
and/CC
wholesale/JJ
deposit/NN
brokering/NN
./.
He/PRP
recently/RB
voted/VBD
``/``
present/RB
''/''
when/WRB
the/DT
committee/NN
authorized/VBD
a/DT
subpoena/NN
to/TO
compel/VB
Mr./NNP
Keating/NNP
to/TO
testify/VB
,/,
then/RB
changed/VBD
his/PRP$
vote/NN
to/TO
yes/UH
./.
But/CC
the/DT
chairman/NN
's/POS
supporters/NNS
have/VBP
the/DT
upper/JJ
hand/NN
as/IN
federal/JJ
regulators/NNS
press/VBP
a/DT
$/$
1.1/CD
billion/CD
fraud/NN
suit/NN
against/IN
Mr./NNP
Keating/NNP
and/CC
others/NNS
./.
Rep./NNP
Jim/NNP
Leach/NNP
R./NNP
,/,
Iowa/NNP
the/DT
Lincoln/NNP
S&L/NNP
affair/NN
is/VBZ
``/``
the/DT
biggest/JJS
bank/NN
heist/NN
in/IN
history/NN
,/,
''/''
and/CC
adds/VBZ
:/:
``/``
The/DT
great/JJ
question/NN
that/WDT
remains/VBZ
to/TO
be/VB
resolved/VBN
is/VBZ
whether/IN
we/PRP
have/VBP
a/DT
congressional/JJ
Watergate/NNP
in/IN
the/DT
making/NN
./.
''/''
A/DT
witness/NN
set/VBN
to/TO
testify/VB
on/IN
Thursday/NNP
was/VBD
quoted/VBN
in/IN
a/DT
news/NN
report/NN
over/IN
the/DT
weekend/NN
as/IN
saying/VBG
Lincoln/NNP
``/``
laundered/VBD
''/''
campaign/NN
contributions/NNS
illegally/RB
./.
But/CC
the/DT
witness/NN
,/,
William/NNP
Crawford/NNP
,/,
California/NNP
's/POS
chief/JJ
state/NN
thrift/NN
regulator/NN
,/,
denies/VBZ
saying/VBG
that/DT
./.
``/``
I/PRP
do/VBP
n't/RB
know/VB
whether/IN
it/PRP
was/VBD
done/VBN
properly/RB
or/CC
not/RB
,/,
because/IN
I/PRP
'm/VBP
not/RB
a/DT
lawyer/NN
,/,
''/''
he/PRP
said/VBD
in/IN
a/DT
telephone/NN
interview/NN
yesterday/NN
./.
But/CC
he/PRP
said/VBD
he/PRP
is/VBZ
prepared/VBN
to/TO
testify/VB
that/IN
executives/NNS
of/IN
Lincoln/NNP
and/CC
its/PRP$
parent/NN
corporation/NN
got/VBD
unusually/RB
high/JJ
salaries/NNS
and/CC
frequent/JJ
calls/NNS
directing/VBG
them/PRP
to/TO
make/VB
specific/JJ
contributions/NNS
./.
The/DT
committee/NN
also/RB
has/VBZ
summoned/VBN
Mr./NNP
Wall/NNP
's/POS
predecessor/NN
,/,
Edwin/NNP
Gray/NNP
./.
He/PRP
has/VBZ
characterized/VBN
the/DT
five/CD
senators/NNS
'/POS
roles/NNS
as/IN
``/``
tantamount/JJ
to/TO
an/DT
attempt/NN
to/TO
subvert/VB
the/DT
.../:
regulatory/JJ
process/NN
,/,
''/''
and/CC
he/PRP
is/VBZ
n't/RB
expected/VBN
to/TO
back/VB
down/RP
even/RB
though/IN
the/DT
five/CD
senators/NNS
have/VBP
disputed/VBN
his/PRP$
account/NN
of/IN
a/DT
1987/CD
meeting/NN
./.
So/IN
the/DT
senators/NNS
must/MD
brace/VB
themselves/PRP
./.
Sen./NNP
Cranston/NNP
,/,
as/IN
he/PRP
returned/VBD
to/TO
the/DT
capital/NN
last/JJ
week/NN
from/IN
a/DT
one-day/JJ
trip/NN
to/TO
inspect/VB
earthquake/NN
damage/NN
in/IN
San/NNP
Francisco/NNP
,/,
sighed/VBD
to/TO
an/DT
aide/NN
:/:
``/``
Well/UH
,/,
back/RB
to/TO
Keatingland/NNP
./.
''/''
When/WRB
Anne/NNP
Volokh/NNP
and/CC
her/PRP$
family/NN
immigrated/VBD
to/TO
the/DT
U.S./NNP
14/CD
years/NNS
ago/RB
,/,
they/PRP
started/VBD
life/NN
in/IN
Los/NNP
Angeles/NNP
with/IN
only/RB
$/$
400/CD
./.
They/PRP
'd/MD
actually/RB
left/VBD
the/DT
Soviet/NNP
Union/NNP
with/IN
$/$
480/CD
,/,
but/CC
during/IN
a/DT
stop/NN
in/IN
Italy/NNP
Ms./NNP
Volokh/NNP
dropped/VBD
$/$
80/CD
on/IN
a/DT
black/JJ
velvet/NN
suit/NN
./.
Not/RB
surprisingly/RB
,/,
she/PRP
quickly/RB
adapted/VBD
to/TO
the/DT
American/JJ
way/NN
./.
Three/CD
months/NNS
after/IN
she/PRP
arrived/VBD
in/IN
L.A./NNP
she/PRP
spent/VBD
$/$
120/CD
she/PRP
did/VBD
n't/RB
have/VB
for/IN
a/DT
hat/NN
./.
``/``
A/DT
turban/NN
,/,
''/''
she/PRP
specifies/VBZ
,/,
``/``
though/IN
it/PRP
was/VBD
n't/RB
the/DT
time/NN
for/IN
that/DT
14/CD
years/NNS
ago/RB
./.
But/CC
I/PRP
loved/VBD
turbans/NNS
./.
''/''
)/)
Since/IN
then/RB
she/PRP
has/VBZ
become/VBN
wealthy/JJ
./.
Her/PRP$
husband/NN
and/CC
older/JJR
son/NN
--/:
a/DT
computer/NN
prodigy/NN
profiled/VBN
in/IN
The/NNP
Wall/NNP
Street/NNP
Journal/NNP
in/IN
1981/CD
,/,
when/WRB
he/PRP
was/VBD
13/CD
--/:
run/VBP
a/DT
software/NN
company/NN
with/IN
expected/JJ
sales/NNS
this/DT
year/NN
of/IN
$/$
10/CD
million/CD
./.
Most/RBS
recently/RB
,/,
she/PRP
has/VBZ
become/VBN
the/DT
publisher/NN
of/IN
Movieline/NNP
,/,
a/DT
four-year-old/JJ
Los/NNP
Angeles/NNP
magazine/NN
that/WDT
began/VBD
national/JJ
distribution/NN
last/JJ
month/NN
,/,
with/IN
an/DT
initial/JJ
press/NN
run/NN
of/IN
100,000/CD
copies/NNS
./.
Distributed/VBN
by/IN
the/DT
Hearst/NNP
Corp./NNP
's/POS
Eastern/NNP
News/NNP
,/,
the/DT
glossy/JJ
publication/NN
melds/VBZ
Vanity/NNP
Fair/NNP
's/POS
gossipy/JJ
archness/NN
and/CC
Premiere/NNP
's/POS
earnest/JJ
delving/NN
into/IN
behind-the-scenes/JJ
minutiae/NNS
,/,
with/IN
a/DT
special/JJ
emphasis/NN
on/IN
Tinseltown/NNP
as/IN
fashion/NN
trendsetter/NN
./.
It/PRP
's/VBZ
being/VBG
sold/VBN
through/IN
bookstores/NNS
,/,
newsstands/NNS
and/CC
some/DT
video/JJ
stores/NNS
./.
Though/NNP
Ms./NNP
Volokh/NNP
is/VBZ
a/DT
small/JJ
woman/NN
,/,
she/PRP
has/VBZ
an/DT
outsized/JJ
personality/NN
and/CC
dramatic/JJ
flair/NN
that/WDT
seem/VBP
perfectly/RB
suited/VBN
to/TO
capitalism/NN
as/IN
it/PRP
is/VBZ
practiced/VBN
in/IN
Hollywood/NNP
./.
Certainly/RB
life/NN
for/IN
her/PRP
has/VBZ
changed/VBN
considerably/RB
since/IN
the/DT
days/NNS
in/IN
Kiev/NNP
,/,
when/WRB
she/PRP
lived/VBD
with/IN
her/PRP$
parents/NNS
,/,
her/PRP$
husband/NN
and/CC
her/PRP$
two/CD
sons/NNS
in/IN
a/DT
2/CD
1\/2-room/JJ
apartment/NN
in/IN
what/WP
she/PRP
calls/VBZ
``/``
silent/JJ
internal/JJ
immigration/NN
,/,
''/''
dreaming/VBG
of/IN
escape/NN
./.
Now/RB
,/,
for/IN
example/NN
,/,
she/PRP
owns/VBZ
48/CD
hats/NNS
./.
However/RB
,/,
she/PRP
remembers/VBZ
the/DT
lean/JJ
years/NNS
and/CC
recalls/VBZ
with/IN
relish/NN
wearing/VBG
her/PRP
first/JJ
major/JJ
American/JJ
purchase/NN
--/:
that/DT
turban/NN
10/CD
years/NNS
later/RB
and/CC
having/VBG
a/DT
Los/NNP
Angeles/NNP
boutique/NN
owner/NN
ask/VB
her/PRP
if/IN
it/PRP
was/VBD
a/DT
Chanel/NNP
./.
With/IN
obvious/JJ
satisfaction/NN
,/,
she/PRP
says/VBZ
she/PRP
told/VBD
him/PRP
:/:
``/``
No/UH
darling/NN
,/,
I/PRP
just/RB
give/VB
it/PRP
a/DT
Chanel/NNP
look/NN
./.
''/''
She/PRP
keeps/VBZ
track/NN
of/IN
the/DT
rest/NN
of/IN
her/PRP$
hats/NNS
by/IN
stapling/VBG
Polaroid/NNP
snapshots/NNS
to/TO
the/DT
outside/NN
of/IN
each/DT
hatbox/NN
./.
Are/VBP
the/DT
hats/NNS
merely/RB
part/NN
of/IN
her/PRP$
new/JJ
L.A./NNP
persona/NN
,/,
along/IN
with/IN
the/DT
many/JJ
ultra-thin/JJ
Capri/NNP
cigarettes/NNS
she/PRP
smokes/VBZ
,/,
the/DT
parties/NNS
she/PRP
throws/VBZ
for/IN
500/CD
people/NNS
,/,
the/DT
Chekovian/JJ
feasts/NNS
she/PRP
offers/VBZ
guests/NNS
at/IN
her/PRP$
weekend/NN
place/NN
in/IN
Santa/NNP
Barbara/NNP
?/.
``/``
No/UH
,/,
darling/NN
,/,
''/''
she/PRP
said/VBD
recently/RB
in/IN
her/PRP$
fluent/JJ
,/,
slightly/RB
affected/JJ
English/NNP
,/,
during/IN
a/DT
trip/NN
East/RB
to/TO
promote/VB
Movieline/NNP
's/POS
national/JJ
expansion/NN
./.
``/``
You/PRP
have/VBP
to/TO
be/VB
born/VBN
with/IN
it/PRP
./.
I/PRP
used/VBD
to/TO
wear/VB
hats/NNS
in/IN
Russia/NNP
,/,
but/CC
I/PRP
had/VBD
to/TO
make/VB
them/PRP
and/CC
my/PRP$
dresses/NNS
./.
On/IN
the/DT
hat/NN
side/NN
I/PRP
was/VBD
n't/RB
getting/VBG
what/WP
I/PRP
wanted/VBD
./.
''/''
Now/RB
48/CD
years/NNS
old/JJ
,/,
Ms./NNP
Volokh/NNP
has/VBZ
definite/JJ
ideas/NNS
about/IN
what/WP
she/PRP
wants/VBZ
./.
At/IN
Movieline/NNP
,/,
she/PRP
wants/VBZ
``/``
specific/JJ
paragraphing/NN
,/,
specific/JJ
tone/NN
,/,
a/DT
specific/JJ
attitude/NN
--/:
bright/JJ
and/CC
bold/JJ
and/CC
tongue-in-cheek/JJ
./.
''/''
In/IN
restaurants/NNS
this/DT
case/NN
,/,
the/DT
Russian/NNP
Samovar/NNP
,/,
a/DT
New/NNP
York/NNP
restaurant/NN
operated/VBN
by/IN
and/CC
for/IN
Soviet/JJ
emigres/NNS
she/PRP
did/VBD
n't/RB
want/VB
the/DT
chirpy/JJ
,/,
folkish/JJ
music/NN
bouncing/VBG
through/IN
the/DT
room/NN
./.
``/``
You/PRP
people/NNS
here/RB
think/VBP
this/DT
is/VBZ
Russian/JJ
music/NN
,/,
''/''
she/PRP
said/VBD
with/IN
disdain/NN
,/,
and/CC
called/VBD
over/IN
to/TO
the/DT
waitress/NN
:/:
``/``
Could/MD
you/PRP
turn/VB
it/PRP
off/RP
?/.
''/''
That/DT
done/VBN
,/,
Ms./NNP
Volokh/NNP
spoke/VBD
with/IN
rampant/JJ
eloquence/NN
about/IN
the/DT
many/JJ
attributes/NNS
she/PRP
feels/VBZ
she/PRP
was/VBD
born/VBN
with/IN
:/:
an/DT
understanding/NN
of/IN
food/NN
,/,
business/NN
,/,
Russian/JJ
culture/NN
,/,
human/JJ
nature/NN
,/,
and/CC
parties/NNS
./.
``/``
Parties/NNS
are/VBP
rather/RB
a/DT
state/NN
of/IN
mind/NN
,/,
''/''
she/PRP
said/VBD
,/,
pausing/VBG
only/RB
to/TO
taste/VB
and/CC
pass/VB
judgment/NN
on/IN
the/DT
Georgian/JJ
shashlik/NN
``/``
a/DT
little/RB
well/RB
done/VBN
,/,
but/CC
very/RB
good/JJ
''/''
)/)
./.
``/``
If/IN
you/PRP
are/VBP
born/VBN
to/TO
give/VB
parties/NNS
,/,
you/PRP
give/VBP
parties/NNS
./.
Even/RB
in/IN
Russia/NNP
we/PRP
managed/VBD
to/TO
give/VB
parties/NNS
./.
In/IN
Los/NNP
Angeles/NNP
,/,
in/IN
our/PRP$
lean/JJ
years/NNS
,/,
we/PRP
gave/VBD
parties/NNS
./.
''/''
As/IN
publisher/NN
of/IN
a/DT
magazine/NN
devoted/VBN
to/TO
movies/NNS
as/IN
guideposts/NNS
for/IN
fashion/NN
and/CC
other/JJ
fantasies/NNS
,/,
Ms./NNP
Volokh/NNP
sees/VBZ
her/PRP
party-giving/NN
as/IN
an/DT
important/JJ
part/NN
of/IN
business/NN
./.
She/PRP
has/VBZ
thrown/VBN
extravagant/JJ
soirees/NNS
for/IN
crowds/NNS
of/IN
people/NNS
,/,
but/CC
prefers/VBZ
more/RBR
intimate/JJ
gatherings/NNS
./.
``/``
At/IN
American/JJ
cocktail/NN
parties/VBZ
everyone/NN
's/VBZ
always/RB
looking/VBG
over/IN
your/PRP$
shoulder/NN
to/TO
see/VB
who/WP
they/PRP
can/MD
talk/VB
to/TO
next/RB
./.
I/PRP
like/VBP
rather/RB
tea/NN
,/,
because/IN
it/PRP
is/VBZ
at/IN
the/DT
end/NN
of/IN
the/DT
day/NN
./.
''/''
She/PRP
serves/VBZ
high/JJ
Russian/JJ
tea/NN
,/,
at/IN
5/CD
p.m/RB
./.
``/``
It/PRP
's/VBZ
supposed/VBN
to/TO
be/VB
later/RB
but/CC
I/PRP
just/RB
moved/VBD
it/PRP
./.
In/IN
Los/NNP
Angeles/NNP
,/,
it/PRP
's/VBZ
important/JJ
to/TO
catch/VB
people/NNS
just/RB
after/IN
work/NN
./.
''/''
She/PRP
also/RB
frequently/RB
invites/VBZ
directors/NNS
,/,
producers/NNS
,/,
actors/NNS
,/,
writers/NNS
and/CC
other/JJ
show/NN
business/NN
people/NNS
for/IN
``/``
coffee/NN
and/CC
clips/NNS
in/IN
the/DT
pleasure/NN
dome/NN
./.
''/''
Guests/NNS
bring/VBP
movies/NNS
on/IN
tape/NN
,/,
and/CC
show/VBP
their/PRP$
favorite/JJ
three-to-five/JJ
minute/NN
segments/NNS
on/IN
the/DT
screen/NN
that/WDT
unrolls/VBZ
from/IN
the/DT
ceiling/NN
of/IN
the/DT
Volokhs/NNPS
'/POS
art-nouveau/JJ
library/NN
``/``
the/JJ
pleasure/NN
dome/NN
''/''
)/)
./.
They/PRP
eat/VBP
``/``
sinful/JJ
and/CC
sensual/JJ
things/NNS
''/''
--/:
and/CC
explain/VBP
their/PRP$
clips/NNS
./.
``/``
It/PRP
's/VBZ
very/RB
revealing/JJ
and/CC
soul/NN
baring/VBG
,/,
''/''
said/VBD
Ms./NNP
Volokh/NNP
./.
The/DT
idea/NN
for/IN
Movieline/NNP
actually/RB
was/VBD
dreamed/VBN
up/RP
by/IN
an/DT
old/JJ
friend/NN
of/IN
the/DT
Volokhs/NNPS
,/,
Boris/NNP
Krutchensky/NNP
who/WP
has/VBZ
the/DT
title/NN
of/IN
co-publisher/NN
Laurie/NNP
Halpern/NNP
Smith/NNP
,/,
now/RB
the/DT
magazine/NN
's/POS
co-editor/NN
./.
Mr./NNP
Krutchensky/NNP
approached/VBD
Ms./NNP
Volokh/NNP
five/CD
years/NNS
ago/RB
about/IN
backing/VBG
the/DT
publication/NN
,/,
which/WDT
started/VBD
out/RP
as/IN
a/DT
listing/NN
guide/NN
./.
She/PRP
was/VBD
interested/JJ
only/RB
if/IN
she/PRP
could/MD
guide/VB
it/PRP
editorially/RB
as/RB
well/RB
./.
``/``
Anne/VB
does/VBZ
n't/RB
believe/VB
in/IN
blandness/NN
,/,
''/''
said/VBD
Ms./NNP
Smith/NNP
./.
``/``
She/PRP
wants/VBZ
things/NNS
to/TO
be/VB
exciting/JJ
./.
And/CC
she/PRP
has/VBZ
this/DT
inexhaustible/JJ
energy/NN
./.
She/PRP
'll/MD
think/VB
of/IN
an/DT
idea/NN
the/DT
editorial/JJ
people/NNS
think/VBP
is/VBZ
impossible/JJ
,/,
then/RB
she/PRP
'll/MD
have/VB
us/PRP
make/VB
it/PRP
work/VB
./.
''/''
In/IN
fact/NN
,/,
Ms./NNP
Volokh/NNP
was/VBD
n't/RB
just/RB
a/DT
rich/JJ
lady/NN
who/WP
needed/VBD
a/DT
hobby/NN
./.
Back/RB
in/IN
the/DT
Soviet/NNP
Union/NNP
she/PRP
was/VBD
a/DT
respected/JJ
journalist/NN
,/,
writing/VBG
a/DT
weekly/JJ
column/NN
about/IN
the/DT
national/JJ
cuisine/NN
for/IN
Sunday/NNP
Izvestia/NNP
./.
Those/DT
columns/NNS
--/:
vivid/JJ
discussions/NNS
of/IN
the/DT
cultural/JJ
and/CC
literary/JJ
reverberations/NNS
of/IN
food/NN
as/RB
well/RB
as/IN
practical/JJ
advice/NN
on/IN
how/WRB
to/TO
glamorize/VB
dreary/JJ
Sovietized/JJ
meals/NNS
--/:
became/VBD
the/DT
basis/NN
for/IN
her/PRP$
erudite/JJ
and/CC
entertaining/JJ
cookbook/NN
,/,
``/``
The/DT
Art/NNP
of/IN
Russian/NNP
Cuisine/NNP
,/,
''/''
brought/VBN
out/RP
in/IN
1983/CD
by/IN
Macmillan/NNP
Publishing/NNP
Co/NNP
./.
``/``
I/PRP
do/VBP
n't/RB
trust/VB
people/NNS
who/WP
do/VBP
n't/RB
eat/VB
,/,
''/''
said/VBD
Ms./NNP
Volokh/NNP
,/,
though/IN
she/PRP
herself/PRP
stopped/VBD
eating/VBG
lunch/NN
a/DT
few/JJ
years/NNS
ago/RB
to/TO
drop/VB
25/CD
pounds/NNS
./.
``/``
Look/VB
at/IN
Dostoevski/NNP
and/CC
Kafka/NNP
./.
No/DT
one/NN
ever/RB
eats/VBZ
in/IN
their/PRP$
books/NNS
and/CC
look/VB
at/IN
them/PRP
.../:
./.
Tolstoy/NNP
's/POS
characters/NNS
eat/VBP
,/,
Pushkin/NNP
's/POS
,/,
Gogol/NNP
's/POS
./.
''/''
In/IN
her/PRP$
cookbook/NN
,/,
which/WDT
Macmillan/NNP
is/VBZ
bringing/VBG
out/RP
in/IN
soft/JJ
cover/NN
this/DT
month/NN
the/DT
blini/NNS
recipe/NN
revised/VBN
so/IN
it/PRP
works/VBZ
)/)
,/,
she/PRP
introduces/VBZ
each/DT
chapter/NN
with/IN
appropriate/JJ
quotations/NNS
from/IN
Russian/JJ
literature/NN
:/:
Pushkin/NNP
on/IN
blini/NNS
,/,
Goncharov/NNP
on/IN
piroghi/NNS
./.
In/IN
life/NN
,/,
she/PRP
offers/VBZ
practical/JJ
dieting/NN
advice/NN
:/:
``/``
Divide/VB
your/PRP$
meals/NNS
into/IN
important/JJ
and/CC
unimportant/JJ
./.
In/IN
a/DT
great/JJ
restaurant/NN
,/,
do/VBP
n't/RB
deprive/VB
yourself/PRP
./.
The/DT
other/JJ
meals/NNS
do/VBP
n't/RB
matter/VB
./.
''/''
Amusing/JJ
as/IN
she/PRP
is/VBZ
,/,
and/CC
frivolous/JJ
as/IN
she/PRP
can/MD
seem/VB
,/,
this/DT
is/VBZ
a/DT
serious/JJ
person/NN
with/IN
some/DT
difficult/JJ
memories/NNS
./.
She/PRP
was/VBD
the/DT
child/NN
of/IN
relative/JJ
privilege/NN
./.
Her/PRP$
mother/NN
was/VBD
a/DT
translator/NN
;/:
her/PRP$
father/NN
was/VBD
``/``
the/DT
eternal/JJ
vice/NN
director/NN
./.
''/''
``/``
I/PRP
emigrated/VBD
to/TO
wear/VB
better/JJR
hats/NNS
,/,
do/VB
better/JJR
parties/NNS
,/,
''/''
she/PRP
said/VBD
with/IN
a/DT
giggle/NN
./.
``/``
But/CC
we/PRP
should/MD
n't/RB
leave/VB
out/RP
political/JJ
reasons/NNS
,/,
number/NN
one/CD
./.
You/PRP
try/VBP
to/TO
maintain/VB
your/PRP$
dignity/NN
under/IN
difficult/JJ
circumstances/NNS
./.
One/PRP
can/MD
not/RB
imagine/VB
how/WRB
you/PRP
live/VBP
when/WRB
you/PRP
live/VBP
those/DT
double/JJ
and/CC
triple/JJ
lives/NNS
./.
''/''
By/IN
1973/CD
,/,
after/IN
their/PRP$
second/JJ
child/NN
was/VBD
born/VBN
,/,
it/PRP
had/VBD
become/VBN
clear/JJ
to/TO
Ms./NNP
Volokh/NNP
and/CC
her/PRP$
husband/NN
Vladimir/NNP
,/,
a/DT
computer/NN
scientist/NN
,/,
that/IN
they/PRP
wanted/VBD
to/TO
leave/VB
the/DT
U.S.S.R/NNP
./.
Ms./NNP
Volokh/NNP
quit/VBD
her/PRP
job/NN
,/,
to/TO
remove/VB
herself/PRP
from/IN
the/DT
public/JJ
eye/NN
./.
The/DT
wait/NN
was/VBD
miserable/JJ
./.
Before/IN
granting/VBG
Ms./NNP
Volokh/NNP
's/POS
parents/NNS
a/DT
visa/NN
,/,
the/DT
government/NN
required/VBD
her/PRP$
mother/NN
to/TO
obtain/VB
permission/NN
from/IN
her/PRP$
first/JJ
husband/NN
,/,
whom/WP
she/PRP
had/VBD
divorced/VBN
38/CD
years/NNS
earlier/RBR
./.
Mr./NNP
Volokh/NNP
was/VBD
fired/VBN
from/IN
his/PRP$
job/NN
,/,
and/CC
had/VBD
to/TO
endure/VB
hours/NNS
of/IN
organized/JJ
verbal/JJ
abuse/NN
from/IN
his/PRP$
co-workers/NNS
,/,
accusations/NNS
of/IN
sabotage/NN
and/CC
counterrevolutionary/JJ
activities/NNS
./.
The/DT
Volokhs/NNPS
were/VBD
afraid/JJ
that/IN
they/PRP
'd/MD
end/VB
up/RP
like/IN
a/DT
friend/NN
of/IN
theirs/PRP
who/WP
'd/VBD
applied/VBN
for/IN
a/DT
visa/NN
and/CC
waited/VBN
for/IN
10/CD
years/NNS
,/,
having/VBG
been/VBN
demoted/VBN
from/IN
his/PRP$
profession/NN
of/IN
theoretical/JJ
mathematician/NN
to/TO
shipping/NN
clerk/NN
./.
They/PRP
did/VBD
n't/RB
./.
Their/PRP$
visa/NN
came/VBD
in/IN
relatively/RB
short/JJ
order/NN
,/,
and/CC
they/PRP
moved/VBD
to/TO
Los/NNP
Angeles/NNP
./.
Mr./NNP
Volokh/NNP
soon/RB
found/VBD
work/NN
in/IN
his/PRP$
field/NN
,/,
but/CC
Ms./NNP
Volokh/NNP
refused/VBD
the/DT
obvious/JJ
and/CC
available/JJ
occupation/NN
-/:
as/IN
translator/NN
for/IN
a/DT
Russian/NNP
who/WP
spoke/VBD
fluent/JJ
English/NNP
./.
``/``
That/DT
's/VBZ
always/RB
looking/VBG
back/RB
,/,
''/''
she/PRP
said/VBD
./.
``/``
I/PRP
wanted/VBD
to/TO
be/VB
in/IN
business/NN
./.
''/''
On/IN
the/DT
way/NN
to/TO
that/DT
goal/NN
,/,
she/PRP
received/VBD
her/PRP$
first/JJ
U.S./NNP
paycheck/NN
for/IN
proofreading/VBG
a/DT
book/NN
of/IN
Polish/JJ
poetry/NN
,/,
attended/VBD
secretarial/JJ
school/NN
,/,
then/RB
went/VBD
to/TO
work/VB
for/IN
a/DT
fund-raising/NN
organization/NN
./.
Soon/RB
she/PRP
was/VBD
running/VBG
the/DT
office/NN
./.
When/WRB
her/PRP$
husband/NN
and/CC
son/NN
founded/VBD
their/PRP$
computer/NN
company/NN
,/,
Vesoft/NNP
,/,
she/PRP
worked/VBD
as/IN
business/NN
manager/NN
,/,
bookkeeper/NN
and/CC
publicist/NN
./.
Now/RB
Movieline/NNP
is/VBZ
located/VBN
in/IN
the/DT
same/JJ
building/NN
as/IN
Vesoft/NNP
./.
``/``
Things/NNS
work/VBP
out/RP
unexpectedly/RB
in/IN
life/NN
,/,
''/''
said/VBD
Ms./NNP
Volokh/NNP
./.
``/``
You/PRP
never/RB
know/VBP
if/IN
you/PRP
'll/MD
be/VB
chosen/VBN
to/TO
be/VB
the/DT
scapegoat/NN
or/CC
the/DT
lucky/JJ
one/CD
./.
We/PRP
were/VBD
lucky/JJ
./.
''/''
William/NNP
D./NNP
Forrester/NNP
,/,
president/NN
of/IN
the/DT
U.S.-U.S.S.R./NNP
Trade/NNP
and/CC
Economic/NNP
Council/NNP
,/,
has/VBZ
a/DT
warning/NN
for/IN
U.S./NNP
companies/NNS
trying/VBG
to/TO
do/VB
business/NN
in/IN
the/DT
Soviet/NNP
Union/NNP
./.
``/``
It/PRP
's/VBZ
an/DT
extremely/RB
complex/JJ
market/NN
,/,
and/CC
you/PRP
have/VBP
to/TO
be/VB
prepared/VBN
to/TO
make/VB
a/DT
big/JJ
commitment/NN
,/,
''/''
Mr./NNP
Forrester/NNP
says/VBZ
./.
``/``
We/PRP
are/VBP
not/RB
trying/VBG
to/TO
encourage/VB
everyone/NN
./.
''/''
Undeterred/JJ
by/IN
such/JJ
words/NNS
of/IN
caution/NN
,/,
corporate/JJ
America/NNP
is/VBZ
flocking/VBG
to/TO
Moscow/NNP
,/,
lured/VBN
by/IN
a/DT
huge/JJ
untapped/JJ
market/NN
and/CC
Mikhail/NNP
Gorbachev/NNP
's/POS
attempt/NN
to/TO
overhaul/VB
the/DT
Soviet/JJ
economy/NN
./.
Doing/VBG
business/NN
with/IN
the/DT
Russians/NNPS
,/,
once/RB
the/DT
pursuit/NN
of/IN
a/DT
handful/NN
of/IN
hardened/JJ
veterans/NNS
,/,
has/VBZ
become/VBN
the/DT
goal/NN
of/IN
such/JJ
major/JJ
companies/NNS
as/IN
General/NNP
Motors/NNP
Corp./NNP
,/,
Federal/NNP
Express/NNP
Corp./NNP
and/CC
Procter/NNP
&/CC
Gamble/NNP
Co./NNP
,/,
as/RB
well/RB
as/IN
a/DT
cluster/NN
of/IN
smaller/JJR
firms/NNS
./.
Reflecting/VBG
the/DT
new-found/JJ
interest/NN
,/,
more/JJR
than/IN
140/CD
U.S./NNP
companies/NNS
are/VBP
taking/VBG
part/NN
in/IN
a/DT
Moscow/NNP
exhibition/NN
organized/VBN
by/IN
Mr./NNP
Forrester/NNP
's/POS
trade/NN
group/NN
./.
But/CC
while/IN
U.S./NNP
interest/NN
may/MD
be/VB
big/JJ
and/CC
growing/VBG
,/,
the/DT
difficulties/NNS
that/WDT
have/VBP
stymied/VBN
deals/NNS
in/IN
the/DT
past/NN
show/VBP
no/DT
sign/NN
of/IN
abating/VBG
./.
Alongside/IN
the/DT
old/JJ
problems/NNS
of/IN
a/DT
non-convertible/JJ
currency/NN
and/CC
an/DT
inpenetrable/JJ
bureaucracy/NN
,/,
Western/JJ
business/NN
executives/NNS
must/MD
now/RB
grapple/VB
with/IN
new/JJ
complexities/NNS
linked/VBN
to/TO
perestroika/FW
,/,
the/DT
restructuring/NN
of/IN
the/DT
Soviet/JJ
economy/NN
./.
Executives/NNS
say/VBP
Mr./NNP
Gorbachev/NNP
's/POS
moves/NNS
to/TO
break/VB
up/RP
the/DT
government/NN
's/POS
foreign/JJ
trade/NN
monopoly/NN
have/VBP
created/VBN
uncertainties/NNS
as/RB
well/RB
as/IN
opportunities/NNS
./.
Changing/VBG
legislation/NN
has/VBZ
opened/VBN
the/DT
field/NN
to/TO
thousands/NNS
of/IN
inexperienced/JJ
Soviet/JJ
players/NNS
,/,
many/DT
who/WP
promise/VBP
more/JJR
than/IN
they/PRP
can/MD
deliver/VB
./.
And/CC
some/DT
foreign/JJ
firms/NNS
are/VBP
finding/VBG
that/IN
even/RB
when/WRB
they/PRP
manage/VBP
to/TO
overcome/VB
such/JJ
hurdles/NNS
,/,
their/PRP$
ventures/NNS
now/RB
have/VBP
to/TO
be/VB
endorsed/VBN
by/IN
such/JJ
unpredictable/JJ
bodies/NNS
as/IN
the/DT
Soviet/JJ
parliament/NN
and/CC
the/DT
governments/NNS
of/IN
the/DT
nation/NN
's/POS
republics/NNS
./.
``/``
You/PRP
have/VBP
to/TO
go/VB
out/IN
to/TO
all/PDT
your/PRP$
constituents/NNS
,/,
''/''
says/VBZ
James/NNP
H./NNP
Giffen/NNP
,/,
who/WP
is/VBZ
spearheading/VBG
the/DT
most/RBS
ambitious/JJ
attempt/NN
by/IN
U.S./NNP
firms/NNS
to/TO
break/VB
into/IN
the/DT
Soviet/JJ
market/NN
,/,
involving/VBG
investment/NN
of/IN
more/JJR
than/IN
$/$
5/CD
billion/CD
in/IN
some/RB
two/CD
dozen/NN
joint/JJ
ventures/NNS
./.
As/IN
part/NN
of/IN
that/DT
attempt/NN
,/,
by/IN
the/DT
American/NNP
Trade/NNP
Consortium/NNP
,/,
Mr./NNP
Giffen/NNP
says/VBZ
he/PRP
spends/VBZ
a/DT
lot/NN
of/IN
time/NN
lobbying/VBG
./.
Growing/VBG
public/JJ
fears/NNS
about/IN
the/DT
Soviet/JJ
environment/NN
is/VBZ
one/CD
new/JJ
factor/NN
affecting/VBG
some/DT
joint-venture/JJ
plans/NNS
./.
Over/IN
the/DT
past/JJ
two/CD
years/NNS
,/,
Soviet/JJ
ministries/NNS
have/VBP
been/VBN
talking/VBG
to/TO
international/JJ
firms/NNS
,/,
including/VBG
Occidental/NNP
Petroleum/NNP
Co./NNP
and/CC
Combustion/NNP
Engineering/NNP
Inc./NNP
of/IN
the/DT
U.S./NNP
,/,
Montedison/NNP
S.p.A./NNP
of/IN
Italy/NNP
and/CC
several/JJ
Japanese/JJ
groups/NNS
,/,
about/IN
jointly/RB
building/VBG
and/CC
operating/VBG
several/JJ
big/JJ
petrochemical/NN
plants/NNS
./.
The/DT
plans/NNS
have/VBP
come/VBN
under/IN
fire/NN
from/IN
Soviet/JJ
environmentalists/NNS
,/,
and/CC
officials/NNS
say/VBP
many/JJ
are/VBP
likely/JJ
to/TO
be/VB
scaled/VBN
back/RP
or/CC
dropped/VBN
./.
Whatever/WDT
the/DT
difficulties/NNS
,/,
Mr./NNP
Gorbachev/NNP
remains/VBZ
committed/JJ
to/TO
increasing/VBG
foreign/JJ
trade/NN
./.
For/IN
political/JJ
as/RB
well/RB
as/IN
economic/JJ
reasons/NNS
,/,
U.S./NNP
companies/NNS
are/VBP
at/IN
the/DT
top/NN
of/IN
his/PRP$
priorities/NNS
--/:
a/DT
point/NN
he/PRP
underscored/VBD
by/IN
spending/VBG
two/CD
hours/NNS
walking/VBG
around/IN
the/DT
U.S./NNP
trade/NN
show/NN
last/JJ
week/NN
./.
Talking/VBG
to/TO
a/DT
small/JJ
group/NN
of/IN
U.S./NNP
executives/NNS
afterwards/RB
,/,
Mr./NNP
Gorbachev/NNP
appeared/VBD
impatient/JJ
for/IN
a/DT
big/JJ
expansion/NN
in/IN
U.S.-Soviet/JJ
trade/NN
,/,
which/WDT
now/RB
amounts/VBZ
to/TO
a/DT
meager/JJ
$/$
3/CD
billion/CD
annually/RB
./.
The/DT
U.S./NNP
ranks/VBZ
fourth/JJ
of/IN
countries/NNS
that/WDT
have/VBP
concluded/VBN
joint/JJ
ventures/NNS
,/,
behind/IN
West/NNP
Germany/NNP
,/,
Finland/NNP
and/CC
Italy/NNP
./.
According/VBG
to/TO
several/JJ
people/NNS
present/RB
at/IN
the/DT
meeting/NN
,/,
Mr./NNP
Gorbachev/NNP
also/RB
supported/VBD
the/DT
idea/NN
of/IN
concluding/VBG
several/JJ
commercial/JJ
accords/NNS
with/IN
the/DT
U.S./NNP
,/,
possibly/RB
at/IN
his/PRP$
next/JJ
summit/NN
meeting/NN
with/IN
President/NNP
Bush/NNP
./.
Judging/VBG
by/IN
the/DT
crush/NN
at/IN
the/DT
exhibition/NN
,/,
deprived/VBN|JJ
Soviet/JJ
consumers/NNS
are/VBP
more/RBR
than/IN
ready/JJ
for/IN
U.S./NNP
products/NNS
./.
Hundreds/NNS
of/IN
people/NNS
lined/VBD
up/RP
every/DT
day/NN
at/IN
the/DT
Colgate-Palmolive/NNP
Co./NNP
stand/NN
to/TO
receive/VB
a/DT
free/JJ
tube/NN
of/IN
toothpaste/NN
,/,
a/DT
commodity/NN
in/IN
chronically/RB
short/JJ
supply/NN
here/RB
./.
And/CC
unruly/JJ
crowds/NNS
at/IN
RJR/NNP
Nabisco/NNP
Inc./NNP
's/POS
booth/NN
almost/RB
knocked/VBD
over/RP
a/DT
glass/NN
showcase/NN
in/IN
the/DT
rush/NN
to/TO
get/VB
a/DT
free/JJ
Camel/NNP
cigarette/NN
sticker/NN
./.
Some/DT
U.S./NNP
products/NNS
are/VBP
filtering/VBG
into/IN
the/DT
Soviet/JJ
market/NN
under/IN
an/DT
emergency/NN
import/NN
program/NN
./.
Both/DT
Colgate/NNP
and/CC
Procter/NNP
&/CC
Gamble/NNP
have/VBP
received/VBN
big/JJ
orders/NNS
for/IN
toothpaste/NN
,/,
soap/NN
and/CC
detergents/NNS
./.
The/DT
American/NNP
Trade/NNP
Consortium/NNP
says/VBZ
it/PRP
is/VBZ
planning/VBG
to/TO
ship/VB
some/RB
$/$
500/CD
million/CD
of/IN
consumer/NN
goods/NNS
,/,
financed/VBN
by/IN
bank/NN
credits/NNS
,/,
in/IN
the/DT
first/JJ
few/JJ
months/NNS
of/IN
next/JJ
year/NN
./.
But/CC
the/DT
current/JJ
Soviet/JJ
purchasing/NN
spree/NN
may/MD
be/VB
a/DT
one-time/JJ
affair/NN
./.
The/DT
goal/NN
of/IN
most/JJS
U.S./NNP
firms/NNS
--/:
joint/JJ
ventures/NNS
--/:
remains/VBZ
elusive/JJ
./.
Because/IN
the/DT
Soviet/JJ
ruble/NN
is/VBZ
n't/RB
convertible/JJ
into/IN
dollars/NNS
,/,
marks/NNS
and/CC
other/JJ
Western/JJ
currencies/NNS
,/,
companies/NNS
that/WDT
hope/VBP
to/TO
set/VB
up/RP
production/NN
facilities/NNS
here/RB
must/MD
either/RB
export/VB
some/DT
of/IN
the/DT
goods/NNS
to/TO
earn/VB
hard/JJ
currency/NN
or/CC
find/VB
Soviet/JJ
goods/NNS
they/PRP
can/MD
take/VB
in/IN
a/DT
counter-trade/JJ
transaction/NN
./.
International/JJ
competition/NN
for/IN
the/DT
few/JJ
Soviet/JJ
goods/NNS
that/WDT
can/MD
be/VB
sold/VBN
on/IN
world/NN
markets/NNS
is/VBZ
heating/VBG
up/RP
,/,
however/RB
./.
Shelley/NNP
M./NNP
Zeiger/NNP
,/,
an/DT
entrepreneur/NN
from/IN
New/NNP
Jersey/NNP
who/WP
buys/VBZ
Soviet/JJ
porcelain/NN
and/CC
``/``
matryoshka/FW
''/''
nesting/JJ
dolls/NNS
for/IN
export/NN
to/TO
the/DT
U.S./NNP
,/,
says/VBZ
West/JJ
German/JJ
companies/NNS
already/RB
have/VBP
snapped/VBN
up/RP
much/JJ
of/IN
the/DT
production/NN
of/IN
these/DT
items/NNS
./.
Seeking/VBG
to/TO
overcome/VB
the/DT
currency/NN
problems/NNS
,/,
Mr./NNP
Giffen/NNP
's/POS
American/NNP
Trade/NNP
Consortium/NNP
,/,
which/WDT
comprises/VBZ
Chevron/NNP
Corp./NNP
,/,
RJR/NNP
,/,
Johnson/NNP
&/CC
Johnson/NNP
,/,
Eastman/NNP
Kodak/NNP
Co./NNP
,/,
and/CC
Archer-Daniels-Midland/NNP
Co./NNP
,/,
has/VBZ
concocted/VBN
an/DT
elaborate/JJ
scheme/NN
to/TO
share/VB
out/RP
dollar/NN
earnings/NNS
,/,
largely/RB
from/IN
the/DT
revenues/NNS
of/IN
a/DT
planned/JJ
Chevron/NNP
oil/NN
project/NN
./.
Several/JJ
medical/JJ
concerns/NNS
,/,
including/VBG
Pfizer/NNP
Inc./NNP
,/,
Hewlett-Packard/NNP
Co./NNP
,/,
Colgate/NNP
and/CC
Abbott/NNP
Laboratories/NNP
intend/VBP
to/TO
pursue/VB
a/DT
similar/JJ
consortium/NN
approach/NN
./.
``/``
It/PRP
's/VBZ
hard/JJ
to/TO
invest/VB
capital/NN
here/RB
on/IN
the/DT
same/JJ
basis/NN
as/IN
investing/VBG
in/IN
other/JJ
countries/NNS
,/,
''/''
says/VBZ
Dennis/NNP
A./NNP
Sokol/NNP
,/,
president/NN
of/IN
Medical/NNP
Service/NNP
Partners/NNP
Inc./NNP
,/,
who/WP
is/VBZ
putting/VBG
the/DT
medical/JJ
consortium/NN
together/RB
./.
Some/DT
U.S./NNP
entrepreneurs/NNS
operate/VBP
on/IN
a/DT
smaller/JJR
scale/NN
./.
One/CD
group/NN
seeks/VBZ
to/TO
publish/VB
a/DT
U.S.-Soviet/JJ
medical/JJ
journal/NN
in/IN
conjunction/NN
with/IN
the/DT
U.S.S.R./NNP
Ministry/NNP
of/IN
Health/NNP
./.
According/VBG
to/TO
Richard/NNP
P./NNP
Mills/NNP
,/,
a/DT
Boston-based/JJ
official/NN
of/IN
the/DT
U.S./NNP
partner/NN
,/,
10,000/CD
copies/NNS
of/IN
the/DT
quarterly/NN
will/MD
be/VB
printed/VBN
in/IN
Russian/NNP
from/IN
next/JJ
year/NN
./.
It/PRP
will/MD
be/VB
financed/VBN
by/IN
advertisements/NNS
from/IN
U.S./NNP
companies/NNS
and/CC
by/IN
simultaneous/JJ
publication/NN
of/IN
an/DT
English-language/NN
journal/NN
containing/VBG
details/NNS
of/IN
Soviet/JJ
medical/JJ
advancements/NNS
./.
``/``
We/PRP
found/VBD
a/DT
market/NN
niche/NN
,/,
''/''
Mr./NNP
Mills/NNP
boasts/VBZ
./.
``/``
It/PRP
's/VBZ
truly/RB
entrepreneurial/JJ
./.
''/''
General/NNP
Electric/NNP
Co./NNP
was/VBD
given/VBN
an/DT
$/$
89.6/CD
million/CD
Navy/NNP
contract/NN
for/IN
nuclear/JJ
propulsion/NN
parts/NNS
./.
Westinghouse/NNP
Electric/NNP
Corp./NNP
also/RB
won/VBD
a/DT
$/$
75.5/CD
million/CD
Navy/NNP
contract/NN
for/IN
nuclear/JJ
propulsion/NN
parts/NNS
./.
Federal/NNP
Data/NNP
Corp./NNP
was/VBD
issued/VBN
a/DT
$/$
14.5/CD
million/CD
Navy/NNP
contract/NN
for/IN
computer/NN
systems/NNS
./.
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
Co./NNP
was/VBD
awarded/VBN
an/DT
$/$
11.5/CD
million/CD
Navy/NNP
contract/NN
for/IN
oceanographic/JJ
services/NNS
./.
Cray/NNP
Research/NNP
Inc./NNP
said/VBD
it/PRP
sold/VBD
one/CD
of/IN
its/PRP$
newest/JJS
and/CC
largest/JJS
computer/NN
systems/NNS
,/,
the/DT
Cray/NNP
Y-MP\/832/NNP
,/,
to/TO
the/DT
United/NNP
Kingdom/NNP
Meteorological/NNP
Office/NNP
./.
The/DT
system/NN
is/VBZ
the/DT
first/JJ
to/TO
be/VB
sold/VBN
through/IN
the/DT
joint/JJ
marketing/NN
agreement/NN
between/IN
Cray/NNP
and/CC
Control/NNP
Data/NNP
Corp/NNP
./.
The/DT
supercomputer/NN
,/,
which/WDT
lists/VBZ
for/IN
$/$
18.5/CD
million/CD
,/,
will/MD
be/VB
installed/VBN
in/IN
the/DT
first/JJ
quarter/NN
of/IN
1990/CD
in/IN
the/DT
meteorological/JJ
office/NN
's/POS
headquarters/NN
in/IN
Bracknell/NNP
,/,
England/NNP
./.
Shareholders/NNP
of/IN
Nuovo/NNP
Banco/NNP
Ambrosiano/NNP
S.p.A./NNP
voted/VBD
to/TO
accept/VB
a/DT
bid/NN
of/IN
5,500/CD
lire/NNS
$/$
4.03/CD
a/DT
share/NN
by/IN
France/NNP
's/POS
Credit/NNP
Agricole/NNP
for/IN
13.32/CD
%/NN
of/IN
the/DT
bank/NN
,/,
rejecting/VBG
an/DT
earlier/JJR
,/,
equal/JJ
offer/NN
by/IN
Italy/NNP
's/POS
Assicurazioni/NNP
Generali/NNP
S.p.A/NNP
./.
The/DT
move/NN
will/MD
give/VB
Nuovo/NNP
Banco/NNP
a/DT
badly/RB
needed/VBN
foreign/JJ
presence/NN
,/,
and/CC
make/VB
Credit/NNP
Agricole/NNP
the/DT
bank/NN
's/POS
largest/JJS
shareholder/NN
./.
It/PRP
also/RB
opens/VBZ
a/DT
rift/NN
in/IN
the/DT
bank/NN
's/POS
shareholders/NNS
'/POS
syndicate/NN
that/WDT
could/MD
lead/VB
to/TO
a/DT
battle/NN
for/IN
control/NN
of/IN
the/DT
concern/NN
./.
Nuovo/NNP
Banco/NNP
will/MD
become/VB
Italy/NNP
's/POS
biggest/JJS
private-sector/JJ
bank/NN
when/WRB
it/PRP
completes/VBZ
its/PRP$
scheduled/JJ
merger/NN
with/IN
Banca/NNP
Cattolica/NNP
del/NNP
Venetoen/NNP
by/IN
year/NN
end/NN
./.
Credit/NNP
Agricole/NNP
asked/VBD
a/DT
Milan/NNP
court/NN
to/TO
sequester/VB
the/DT
Nuovo/NNP
Banco/NNP
shares/NNS
,/,
the/DT
Italian/JJ
news/NN
agency/NN
ANSA/NNP
reported/VBD
./.
The/DT
tribunal/NN
is/VBZ
scheduled/VBN
to/TO
rule/VB
on/IN
the/DT
request/NN
Friday/NNP
./.
No/DT
reason/NN
for/IN
the/DT
request/NN
was/VBD
given/VBN
./.
Credit/NNP
Agricole/NNP
officials/NNS
could/MD
n't/RB
be/VB
immediately/RB
reached/VBN
for/IN
comment/NN
./.
The/DT
decision/NN
to/TO
accept/VB
Credit/NNP
Agricole/NNP
's/POS
bid/NN
,/,
valued/VBN
at/IN
283.3/CD
billion/CD
lire/NN
$/$
207.4/CD
million/CD
a/DT
stormy/JJ
weekend/NN
meeting/NN
./.
Nuovo/NNP
Banco/NNP
's/POS
second/JJ
largest/JJS
shareholder/NN
,/,
the/DT
Fiat/NNP
S.p.A.-controlled/JJ
investment/NN
concern/NN
,/,
Gemina/NNP
S.p.A./NNP
,/,
fought/VBD
to/TO
have/VB
Generali/NNP
's/POS
offer/NN
approved/VBN
./.
Gemina/NNP
,/,
which/WDT
owns/VBZ
13.26/CD
%/NN
of/IN
Nuovo/NNP
Banco/NNP
,/,
abstained/VBD
in/IN
the/DT
final/JJ
vote/NN
on/IN
Credit/NNP
Agricole/NNP
,/,
which/WDT
was/VBD
nonetheless/RB
approved/VBN
by/IN
a/DT
majority/NN
of/IN
shareholders/NNS
./.
The/DT
linkup/NN
with/IN
Credit/NNP
Agricole/NNP
will/MD
give/VB
Nuovo/NNP
Banco/NNP
its/PRP$
first/JJ
foreign/JJ
presence/NN
since/IN
it/PRP
was/VBD
formed/VBN
from/IN
the/DT
wreck/NN
of/IN
the/DT
old/JJ
Banco/NNP
Ambrosiano/NNP
,/,
which/WDT
collapsed/VBD
amid/IN
scandal/NN
after/IN
the/DT
death/NN
of/IN
Chairman/NNP
Roberto/NNP
Calvi/NNP
in/IN
1982/CD
./.
Since/IN
then/RB
,/,
the/DT
bank/NN
has/VBZ
strengthened/VBN
its/PRP$
Italian/JJ
network/NN
,/,
and/CC
has/VBZ
posted/VBN
strong/JJ
results/NNS
./.
``/``
The/DT
shareholders/NNS
felt/VBD
we/PRP
needed/VBD
a/DT
foreign/JJ
presence/NN
more/RBR
than/IN
we/PRP
needed/VBD
links/NNS
with/IN
an/DT
insurance/NN
company/NN
,/,
''/''
an/DT
Ambrosiano/NNP
spokeswoman/NN
said/VBD
./.
Gemina/NNP
said/VBD
in/IN
a/DT
statement/NN
that/IN
``/``
it/PRP
reserves/VBZ
the/DT
right/NN
to/TO
take/VB
any/DT
action/NN
to/TO
protect/VB
its/PRP$
rights/NNS
as/IN
a/DT
member/NN
of/IN
the/DT
syndicate/NN
./.
''/''
A/DT
company/NN
spokeswoman/NN
said/VBD
the/DT
company/NN
had/VBD
n't/RB
decided/VBN
what/WDT
measures/NNS
to/TO
take/VB
,/,
but/CC
did/VBD
n't/RB
rule/VB
out/RP
legal/JJ
action/NN
./.
Generali/NNP
,/,
Italy/NNP
's/POS
biggest/JJS
insurer/NN
,/,
last/JJ
month/NN
offered/VBD
5,500/CD
lire/NNS
a/DT
share/NN
for/IN
the/DT
Nuovo/NNP
Banco/NNP
stake/NN
held/VBN
by/IN
Banco/NNP
Popolare/NNP
di/NNP
Milano/NNP
,/,
the/DT
bank/NN
's/POS
largest/JJS
shareholder/NN
,/,
which/WDT
announced/VBD
plans/NNS
to/TO
sell/VB
the/DT
holdings/NNS
earlier/RBR
this/DT
year/NN
./.
A/DT
Generali/NNP
spokesman/NN
declined/VBD
to/TO
comment/VB
on/IN
Nuovo/NNP
Banco/NNP
's/POS
rejection/NN
of/IN
the/DT
insurer/NN
's/POS
offer/NN
./.
On/IN
the/DT
Milan/NNP
stock/NN
exchange/NN
,/,
Nuovo/NNP
Banco/NNP
's/POS
shares/NNS
jumped/VBD
to/TO
4,830/CD
lire/NNS
each/DT
from/IN
4,695/CD
lire/NNS
Friday/NNP
./.
Qintex/NNP
Australia/NNP
Ltd./NNP
,/,
a/DT
media/NN
and/CC
resorts/NNS
concern/NN
controlled/VBN
by/IN
Australian/JJ
entrepreneur/NN
Christopher/NNP
Skase/NNP
,/,
announced/VBD
a/DT
plan/NN
to/TO
restructure/VB
and/CC
sell/VB
assets/NNS
to/TO
try/VB
to/TO
ease/VB
its/PRP$
financial/JJ
problems/NNS
./.
Mr./NNP
Skase/NNP
,/,
a/DT
41-year-old/JJ
former/JJ
newspaper/NN
reporter/NN
who/WP
chairs/VBZ
the/DT
company/NN
,/,
said/VBD
in/IN
a/DT
statement/NN
that/DT
Qintex/NNP
will/MD
sell/VB
its/PRP$
51/CD
%/NN
stake/NN
in/IN
its/PRP$
upscale/JJ
Mirage/NNP
resorts/NNS
in/IN
Australia/NNP
and/CC
Hawaii/NNP
as/RB
well/RB
as/IN
three/CD
Australian/JJ
television/NN
stations/NNS
./.
The/DT
sales/NNS
are/VBP
expected/VBN
to/TO
raise/VB
more/JJR
than/IN
600/CD
million/CD
Australian/JJ
dollars/NNS
US$/$
462.2/CD
million/CD
Mr./NNP
Skase/NNP
said/VBD
./.
Qintex/NNP
Australia/NNP
has/VBZ
n't/RB
disclosed/VBN
its/PRP$
borrowings/NNS
,/,
but/CC
analysts/NNS
estimate/VBP
the/DT
company/NN
's/POS
debt/NN
at/IN
A$/$
1.2/CD
billion/CD
./.
Mr./NNP
Skase/NNP
also/RB
said/VBD
the/DT
restructuring/NN
plan/NN
calls/VBZ
for/IN
the/DT
merger/NN
of/IN
Qintex/NNP
Australia/NNP
with/IN
Qintex/NNP
Ltd./NNP
,/,
which/WDT
owns/VBZ
55/CD
%/NN
of/IN
Qintex/NNP
Australia/NNP
./.
He/PRP
said/VBD
the/DT
move/NN
will/MD
``/``
significantly/RB
reduce/VB
administrative/JJ
and/CC
operating/NN
costs/NNS
,/,
''/''
but/CC
he/PRP
did/VBD
n't/RB
provide/VB
details/NNS
of/IN
the/DT
merger/NN
./.
Company/NN
officials/NNS
said/VBD
over/IN
the/DT
weekend/NN
that/IN
Qintex/NNP
Australia/NNP
's/POS
bank/NN
creditors/NNS
have/VBP
become/VBN
concerned/JJ
about/IN
a/DT
barrage/NN
of/IN
bad/JJ
news/NN
at/IN
the/DT
company/NN
,/,
including/VBG
a/DT
failed/JJ
US$/$
1.5/CD
billion/CD
plan/NN
to/TO
buy/VB
MGM\/UA/NNP
Communications/NNP
Co./NNP
,/,
a/DT
Beverly/NNP
Hills/NNP
,/,
Calif./NNP
,/,
movie/NN
and/CC
television/NN
production/NN
concern/NN
./.
Friday/NNP
,/,
Qintex/NNP
Entertainment/NNP
Inc./NNP
,/,
a/DT
43%-owned/JJ
U.S./NNP
affiliate/NN
,/,
filed/VBD
for/IN
protection/NN
from/IN
creditor/NN
lawsuits/NNS
under/IN
Chapter/NNP
11/CD
of/IN
the/DT
U.S./NNP
Bankruptcy/NNP
Code/NNP
./.
Analysts/NNS
predicted/VBD
that/IN
the/DT
move/NN
would/MD
further/RB
shake/VB
creditor/NN
confidence/NN
in/IN
Qintex/NNP
Australia/NNP
and/CC
force/VB
it/PRP
to/TO
sell/VB
assets/NNS
./.
The/DT
company/NN
's/POS
latest/JJS
moves/NNS
were/VBD
disclosed/VBN
after/IN
the/DT
Australian/NNP
Stock/NNP
Exchange/NNP
suspended/VBD
trading/NN
in/IN
shares/NNS
of/IN
Qintex/NNP
Australia/NNP
and/CC
Qintex/NNP
Ltd./NNP
because/IN
the/DT
companies/NNS
had/VBD
n't/RB
answered/VBN
an/DT
exchange/NN
inquiry/NN
about/IN
the/DT
extent/NN
of/IN
their/PRP$
loans/NNS
,/,
investments/NNS
and/CC
deposits/NNS
at/IN
Qintex/NNP
Entertainment/NNP
./.
Mr./NNP
Skase/NNP
's/POS
statement/NN
was/VBD
addressed/VBN
to/TO
the/DT
stock/NN
exchange/NN
and/CC
appeared/VBN
to/TO
be/VB
a/DT
response/NN
to/TO
the/DT
inquiry/NN
./.
It/PRP
said/VBD
Qintex/NNP
Entertainment/NNP
owes/VBZ
Qintex/NNP
Australia/NNP
US$/$
38.1/CD
million/CD
in/IN
loans/NNS
not/RB
secured/VBN
by/IN
specific/JJ
assets/NNS
./.
Qintex/NNP
Australia/NNP
also/RB
said/VBD
it/PRP
has/VBZ
an/DT
investment/NN
of/IN
A$/$
83.3/CD
million/CD
in/IN
Qintex/NNP
Entertainment/NNP
shares/NNS
./.
In/IN
the/DT
statement/NN
,/,
Mr./NNP
Skase/NNP
said/VBD
that/IN
on/IN
the/DT
basis/NN
of/IN
current/JJ
interest/NN
rates/NNS
in/IN
Australia/NNP
,/,
the/DT
company/NN
's/POS
asset/NN
sales/NNS
would/MD
reduce/VB
interest/NN
expense/NN
by/IN
about/RB
A$/$
120/CD
million/CD
a/DT
year/NN
in/IN
addition/NN
to/TO
eliminating/VBG
certain/JJ
liabilities/NNS
./.
In/IN
March/NNP
,/,
Qintex/NNP
sold/VBD
49/CD
%/NN
of/IN
the/DT
three/CD
Mirage/NNP
resorts/NNS
to/TO
Japan/NNP
's/POS
Nippon/NNP
Shinpan/NNP
Co./NNP
and/CC
Mitsui/NNP
&/CC
Co./NNP
for/IN
A$/$
433/CD
million/CD
./.
Yesterday/NN
's/POS
statement/NN
did/VBD
n't/RB
say/VB
whether/IN
the/DT
Japanese/JJ
companies/NNS
will/MD
acquire/VB
Qintex/NNP
's/POS
remaining/VBG
stake/NN
in/IN
the/DT
resorts/NNS
./.
Before/IN
its/PRP$
shares/NNS
were/VBD
suspended/VBN
from/IN
trading/NN
,/,
Qintex/NNP
Australia/NNP
plunged/VBD
to/TO
16/CD
Australian/JJ
cents/NNS
12/CD
U.S./NNP
cents/NNS
a/DT
share/NN
yesterday/NN
from/IN
33/CD
Australian/JJ
cents/NNS
Friday/NNP
./.
The/DT
shares/NNS
traded/VBD
at/IN
about/RB
A$/$
1.50/CD
in/IN
March/NNP
,/,
when/WRB
the/DT
plan/NN
to/TO
acquire/VB
MGM\/UA/NN
was/VBD
announced/VBN
./.
Qintex/NNP
Ltd./NNP
shares/NNS
sank/VBD
to/TO
A$/$
1.50/CD
yesterday/NN
from/IN
A$/$
3.05/CD
Friday/NNP
./.
Mr./NNP
Skase/NNP
's/POS
statement/NN
cited/VBD
four/CD
recent/JJ
problems/NNS
that/IN
he/PRP
said/VBD
had/VBD
cut/VBN
group/NN
cash/NN
flow/NN
by/IN
more/JJR
than/IN
A$/$
200/CD
million/CD
./.
They/PRP
were/VBD
what/WP
he/PRP
called/VBD
an/DT
``/``
unlawful/JJ
termination/NN
''/''
by/IN
MGM\/UA/NNP
of/IN
the/DT
acquisition/NN
agreement/NN
with/IN
Qintex/NNP
,/,
high/JJ
Australian/JJ
interest/NN
rates/NNS
,/,
a/DT
pilots/NNS
'/POS
strike/NN
at/IN
Australian/JJ
domestic/JJ
airlines/NNS
that/WDT
cut/VBD
revenue/NN
at/IN
the/DT
company/NN
's/POS
Australian/JJ
resorts/NNS
and/CC
delays/NNS
in/IN
completing/VBG
a/DT
sale/NN
of/IN
two/CD
regional/JJ
TV/NN
stations/NNS
in/IN
Queensland/NNP
state/NN
./.
MGM\/UA/NNP
has/VBZ
sued/VBN
Qintex/NNP
Australia/NNP
for/IN
breach/NN
of/IN
contract/NN
and/CC
fraud/NN
over/IN
the/DT
collapsed/JJ
acquisition/NN
agreement/NN
,/,
and/CC
Qintex/NNP
Australia/NNP
has/VBZ
threatened/VBN
a/DT
countersuit/NN
./.
Qintex/NNP
Australia/NNP
has/VBZ
n't/RB
yet/RB
reported/VBN
results/NNS
for/IN
the/DT
fiscal/JJ
year/NN
ended/VBN
July/NNP
31/CD
./.
In/IN
his/PRP$
statement/NN
,/,
Mr./NNP
Skase/NNP
said/VBD
preliminary/JJ
accounts/NNS
showed/VBD
that/IN
group/NN
profit/NN
before/IN
interest/NN
,/,
tax/NN
and/CC
depreciation/NN
``/``
will/MD
exceed/VB
A$/$
170/CD
million/CD
./.
''/''
He/PRP
gave/VBD
no/DT
further/JJ
details/NNS
./.
Shareholders/NNS
'/POS
funds/NNS
as/IN
of/IN
July/NNP
31/CD
were/VBD
estimated/VBN
at/IN
more/JJR
than/IN
A$/$
1/CD
billion/CD
,/,
Mr./NNP
Skase/NNP
said/VBD
,/,
compared/VBN
with/IN
A$/$
725/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
The/DT
company/NN
will/MD
make/VB
``/``
adequate/JJ
provisions/NNS
''/''
to/TO
cover/VB
costs/NNS
of/IN
the/DT
dispute/NN
with/IN
MGM\/UA/NNP
and/CC
any/DT
loss/NN
from/IN
the/DT
investment/NN
in/IN
Qintex/NNP
Entertainment/NNP
,/,
he/PRP
said/VBD
./.
Mr./NNP
Skase/NNP
also/RB
disclosed/VBD
a/DT
disagreement/NN
among/IN
directors/NNS
of/IN
Qintex/NNP
Australia/NNP
over/IN
certain/JJ
fees/NNS
claimed/VBN
by/IN
Qintex/NNP
Group/NNP
Management/NNP
Services/NNP
Pty./NNP
,/,
a/DT
management-services/JJ
concern/NN
in/IN
which/WDT
Qintex/NNP
Australia/NNP
executives/NNS
have/VBP
an/DT
interest/NN
./.
Qintex/NNP
Australia/NNP
paid/VBD
the/DT
management/NN
company/NN
A$/$
32.6/CD
million/CD
in/IN
the/DT
latest/JJS
fiscal/JJ
year/NN
./.
Mr./NNP
Skase/NNP
said/VBD
most/JJS
of/IN
the/DT
money/NN
went/VBD
to/TO
other/JJ
parties/NNS
for/IN
expenses/NNS
such/JJ
as/IN
rent/NN
and/CC
travel/NN
,/,
but/CC
a/DT
smaller/JJR
portion/NN
is/VBZ
owed/VBN
to/TO
senior/JJ
executives/NNS
and/CC
others/NNS
for/IN
management/NN
services/NNS
./.
Non-executive/JJ
directors/NNS
of/IN
Qintex/NNP
Australia/NNP
,/,
who/WP
must/MD
approve/VB
payments/NNS
to/TO
the/DT
senior/JJ
executives/NNS
,/,
balked/VBD
at/IN
the/DT
amount/NN
./.
Two/CD
of/IN
the/DT
directors/NNS
resigned/VBD
,/,
Mr./NNP
Skase/NNP
said/VBD
,/,
so/IN
the/DT
payments/NNS
have/VBP
n't/RB
yet/RB
been/VBN
approved/VBN
./.
Chip/NN
's/POS
Memory/NN
Is/VBZ
Here/RB
Today/NN
,/,
Here/RB
Tomorrow/NN
TWO/CD
COMPANIES/NNS
plan/VBP
to/TO
market/VB
a/DT
new/JJ
chip/NN
with/IN
ceramic/JJ
circuits/NNS
that/IN
store/VBP
data/NNS
even/RB
when/WRB
the/DT
power/NN
is/VBZ
off/RB
./.
Today/NN
's/POS
most/RBS
widely/RB
used/VBN
data-storing/JJ
chips/NNS
have/VBP
``/``
volatile/JJ
''/''
memories/NNS
--/:
their/PRP$
data/NNS
disappear/VBP
if/IN
they/PRP
are/VBP
n't/RB
fed/VBN
a/DT
steady/JJ
diet/NN
of/IN
electricity/NN
,/,
so/IN
they/PRP
need/VBP
external/JJ
power/NN
supplies/NNS
./.
National/NNP
Semiconductor/NNP
Corp./NNP
and/CC
a/DT
start-up/NN
named/VBN
Ramtron/NNP
Corp./NNP
plan/VBP
to/TO
start/VB
shipping/VBG
so-called/JJ
ferroelectric/JJ
memories/NNS
,/,
which/WDT
can/MD
remember/VB
data/NNS
for/IN
at/IN
least/JJS
10/CD
years/NNS
without/IN
any/DT
current/NN
flowing/VBG
to/TO
them/PRP
./.
The/DT
chips/NNS
use/VBP
materials/NNS
,/,
such/JJ
as/IN
lead/NN
zirconate/NN
titanate/NN
,/,
to/TO
form/VB
microscopic/JJ
switches/NNS
that/WDT
retain/VBP
their/PRP$
data/NNS
without/IN
electricity/NN
./.
Developers/NNS
caution/VBP
that/IN
broad/JJ
applications/NNS
are/VBP
several/JJ
years/NNS
away/RB
because/IN
the/DT
technology/NN
is/VBZ
n't/RB
fully/RB
refined/VBN
./.
But/CC
Ramtron/NNP
of/IN
Colorado/NNP
Springs/NNP
,/,
Colo./NNP
,/,
plans/VBZ
to/TO
start/VB
shipping/VBG
commercial/JJ
quantities/NNS
of/IN
simple/JJ
ferroelectric/JJ
chips/NNS
in/IN
December/NNP
./.
The/DT
company/NN
expects/VBZ
the/DT
chips/NNS
eventually/RB
to/TO
be/VB
used/VBN
in/IN
devices/NNS
that/WDT
mimic/VBP
a/DT
whole/JJ
range/NN
of/IN
computer/NN
memory/NN
equipment/NN
,/,
including/VBG
floppy-disk/NN
and/CC
hard-disk/NN
drives/NNS
./.
National/NNP
Semiconductor/NNP
is/VBZ
getting/VBG
ferroelectric/JJ
technology/NN
from/IN
Krysalis/NNP
Corp./NNP
in/IN
Albuquerque/NNP
,/,
N.M/NNP
./.
National/NNP
says/VBZ
it/PRP
agreed/VBD
to/TO
acquire/VB
Krysalis/NNP
's/POS
assets/NNS
and/CC
will/MD
start/VB
shipping/VBG
commercial/JJ
quantities/NNS
of/IN
its/PRP$
first/JJ
chips/NNS
,/,
including/VBG
a/DT
4-kilobit/JJ
memory/NN
,/,
next/JJ
year/NN
./.
Once/IN
production/NN
hurdles/NNS
are/VBP
overcome/VBN
,/,
the/DT
chips/NNS
could/MD
take/VB
over/RP
a/DT
significant/JJ
part/NN
of/IN
the/DT
market/NN
./.
In/IN
addition/NN
to/TO
not/RB
needing/VBG
an/DT
outside/JJ
power/NN
source/NN
,/,
they/PRP
are/VBP
potentially/RB
cheaper/JJR
to/TO
make/VB
because/IN
they/PRP
require/VBP
fewer/JJR
manufacturing/NN
steps/NNS
than/IN
conventional/JJ
chips/NNS
./.
Military/JJ
buyers/NNS
have/VBP
shown/VBN
interest/NN
,/,
National/JJ
says/VBZ
,/,
because/IN
ferroelectric/JJ
chips/NNS
resist/VBP
atomic/JJ
radiation/NN
./.
And/CC
while/IN
today/NN
's/POS
non-volatile/JJ
chips/NNS
--/:
such/JJ
as/IN
electronically/RB
erasable/JJ
programmable/JJ
read-only/JJ
memory/NN
chips/NNS
--/:
ca/MD
n't/RB
be/VB
used/VBN
in/IN
a/DT
computer/NN
's/POS
central/JJ
memory/NN
because/IN
they/PRP
``/``
learn/VBP
''/''
data/NNS
slowly/RB
,/,
ferroelectric/JJ
chips/NNS
accept/VBP
data/NNS
at/IN
very/RB
high/JJ
speeds/NNS
./.
Showing/VBG
Up/RP
in/IN
Court/NN
Without/IN
Being/VBG
There/RB
AN/DT
AUSTIN/NNP
,/,
Texas/NNP
,/,
company/NN
plans/NNS
to/TO
make/VB
it/PRP
easy/JJ
for/IN
you/PRP
show/VB
up/RP
in/IN
court/NN
a/DT
thousand/CD
miles/NNS
away/RB
without/IN
leaving/VBG
town/NN
./.
Witnesses/NNS
often/RB
must/MD
travel/VB
long/JJ
distances/NNS
to/TO
give/VB
face-to-face/JJ
depositions/NNS
before/IN
lawyers/NNS
and/CC
court/NN
reporters/NNS
./.
That/DT
means/VBZ
huge/JJ
travel/NN
bills/NNS
./.
And/CC
telephone/NN
or/CC
videotape/NN
depositions/NNS
just/RB
do/VBP
n't/RB
match/VB
physical/JJ
encounters/NNS
./.
That/DT
could/MD
change/VB
,/,
thanks/NNS
to/TO
lower/JJR
long-distance/JJ
rates/NNS
and/CC
cheaper/JJR
electronics/NNS
./.
Video/NNP
Telecom/NNP
Corp./NNP
,/,
which/WDT
markets/VBZ
videoconferencing/NN
systems/NNS
,/,
is/VBZ
working/VBG
with/IN
court/NN
reporters/NNS
to/TO
wire/VB
a/DT
nationwide/JJ
network/NN
to/TO
allow/VB
depositions/NNS
by/IN
live/JJ
television/NN
./.
The/DT
company/NN
installed/VBD
a/DT
prototype/NN
system/NN
that/WDT
connects/VBZ
Dallas/NNP
with/IN
Miami/NNP
over/IN
digital/JJ
phone/NN
lines/NNS
./.
And/CC
it/PRP
is/VBZ
preparing/VBG
to/TO
set/VB
up/RP
shop/NN
in/IN
Chicago/NNP
,/,
New/NNP
York/NNP
and/CC
10/CD
other/JJ
cities/NNS
where/WRB
court-reporting/JJ
agencies/NNS
can/MD
tie/VB
conference/NN
rooms/NNS
into/IN
the/DT
network/NN
./.
While/IN
lawyers/NNS
arranged/VBD
individual/JJ
tie-ups/NNS
before/RB
,/,
the/DT
formal/JJ
network/NN
of/IN
court/NN
reporters/NNS
should/MD
make/VB
things/NNS
easier/JJR
and/CC
cheaper/JJR
./.
An/DT
attorney/NN
will/MD
be/VB
able/JJ
to/TO
use/VB
the/DT
network/NN
for/IN
an/DT
hourly/JJ
fee/NN
of/IN
between/IN
$/$
200/CD
and/CC
$/$
400/CD
,/,
depending/VBG
on/IN
the/DT
quality/NN
of/IN
the/DT
picture/NN
,/,
to/TO
take/VB
depositions/NNS
from/IN
witnesses/NNS
in/IN
any/DT
of/IN
the/DT
connected/JJ
cities/NNS
./.
Japanese/NNPS
Reverse/VBP
Tack/NN
On/IN
Patent/NN
Protection/NN
JAPAN/NNP
'S/POS
MISUSE/NNP
of/IN
U.S./NNP
patents/NNS
has/VBZ
been/VBN
a/DT
sore/JJ
point/NN
for/IN
American/JJ
chip/NN
makers/NNS
./.
Now/RB
at/IN
least/JJS
one/CD
Japanese/JJ
company/NN
is/VBZ
turning/VBG
the/DT
courtroom/NN
tables/NNS
./.
Until/IN
now/RB
,/,
most/JJS
Japanese/JJ
charges/NNS
have/VBP
been/VBN
responses/NNS
to/TO
suits/NNS
against/IN
them/PRP
./.
But/CC
last/JJ
year/NN
Hitachi/NNP
Ltd./NNP
surprised/VBD
Japan/NNP
's/POS
electronics/NN
industry/NN
when/WRB
it/PRP
accused/VBD
Korea/NNP
's/POS
Samsung/NNP
Electronics/NNP
Co./NNP
of/IN
using/VBG
Hitachi/NNP
technology/NN
to/TO
make/VB
dynamic/JJ
random-access/JJ
memory/NN
chips/NNS
./.
A/DT
settlement/NN
was/VBD
reached/VBN
but/CC
was/VBD
n't/RB
made/VBN
public/JJ
./.
Hitachi/NNP
went/VBD
on/IN
the/DT
offensive/NN
against/IN
the/DT
U.S./NNP
's/POS
Motorola/NNP
Inc./NNP
earlier/RBR
this/DT
month/NN
with/IN
a/DT
suit/NN
charging/VBG
that/IN
Motorola/NNP
's/POS
new/JJ
MC88200/NNP
chip/NN
infringes/VBZ
on/IN
a/DT
Hitachi/NNP
patent/NN
./.
Another/DT
recent/JJ
Hitachi/NNP
suit/NN
accuses/VBZ
Motorola/NNP
of/IN
reverse/RB
engineering/VBG
a/DT
Hitachi/NNP
technology/NN
--/:
a/DT
turnabout/NN
from/IN
a/DT
nation/NN
of/IN
champion/JJ
reverse/JJ
engineers/NNS
./.
The/DT
moves/NNS
illustrate/VBP
the/DT
more/RBR
aggressive/JJ
attitude/NN
toward/IN
patent/NN
protection/NN
that/IN
patent/JJ
experts/NNS
say/VBP
Japan/NNP
is/VBZ
starting/VBG
to/TO
take/VB
./.
Hitachi/NNP
made/VBD
the/DT
reverse-engineering/NN
charges/NNS
in/IN
an/DT
amendment/NN
to/TO
a/DT
counterclaim/NN
filed/VBN
in/IN
a/DT
federal/JJ
district/JJ
court/NN
in/IN
Texas/NNP
after/IN
Motorola/NNP
sued/VBD
Hitachi/NNP
for/IN
patent/NN
violation/NN
./.
Hitachi/NNP
charges/VBZ
Motorola/NNP
``/``
has/VBZ
engaged/VBN
in/IN
fraudulent/JJ
and/CC
inequitable/JJ
conduct/NN
in/IN
the/DT
procurement/NN
of/IN
certain/JJ
Motorola/NNP
patents/NNS
''/''
used/VBN
in/IN
Motorola/NNP
's/POS
MC68030/NNP
microprocessor/NN
chip/NN
./.
Translation/NN
:/:
Motorola/NNP
appears/VBZ
to/TO
have/VB
taken/VBN
a/DT
Hitachi/NNP
technology/NN
that/WDT
is/VBZ
patented/VBN
in/IN
the/DT
U.S./NNP
,/,
Hitachi/NNP
says/VBZ
,/,
and/CC
``/``
tried/VBD
to/TO
make/VB
it/PRP
look/VB
like/IN
a/DT
new/JJ
technology/NN
./.
''/''
Motorola/NNP
either/CC
denied/VBN
or/CC
would/MD
n't/RB
comment/VB
on/IN
the/DT
various/JJ
charges/NNS
./.
Odds/NNS
and/CC
Ends/NNS
COMPUTER/NN
chips/NNS
that/WDT
simulate/VBP
human/JJ
vision/NN
have/VBP
been/VBN
developed/VBN
by/IN
Japan/NNP
's/POS
Sharp/NNP
Corp/NNP
./.
They/PRP
mimic/VBP
the/DT
brain/NN
by/IN
``/``
looking/VBG
''/''
at/IN
an/DT
image/NN
,/,
extracting/VBG
the/DT
fundamentals/NNS
--/:
boundaries/NNS
,/,
corners/NNS
and/CC
lines/NNS
--/:
and/CC
translating/VBG
them/PRP
into/IN
computer/NN
data/NNS
./.
Sharp/NNP
says/VBZ
the/DT
set/NN
of/IN
chips/NNS
could/MD
improve/VB
fax/NN
machines/NNS
,/,
graphics/NNS
computers/NNS
or/CC
identification/NN
systems/NNS
that/WDT
recognize/VBP
facial/JJ
features/NNS
.../:
./.
An/DT
N.V/NNP
./.
Philips/NNP
unit/NN
has/VBZ
created/VBN
a/DT
computer/NN
system/NN
that/WDT
processes/VBZ
video/NN
images/NNS
3,000/CD
times/NNS
faster/RBR
than/IN
conventional/JJ
systems/NNS
./.
Using/VBG
reduced/JJ
instruction-set/NN
computing/NN
,/,
or/CC
RISC/NNP
,/,
chips/NNS
made/VBN
by/IN
Intergraph/NNP
of/IN
Huntsville/NNP
,/,
Ala./NNP
,/,
the/DT
system/NN
splits/VBZ
the/DT
image/NN
it/PRP
``/``
sees/VBZ
''/''
into/IN
20/CD
digital/JJ
representations/NNS
,/,
each/DT
processed/VBN
by/IN
one/CD
chip/NN
./.
Tandy/NNP
Corp./NNP
,/,
citing/VBG
sluggish/JJ
sales/NNS
of/IN
consumer-electronics/JJ
goods/NNS
,/,
said/VBD
net/JJ
income/NN
dropped/VBD
3.3/CD
%/NN
for/IN
the/DT
first/JJ
quarter/NN
ended/VBN
Sept./NNP
30/CD
./.
The/DT
results/NNS
,/,
which/WDT
represented/VBD
the/DT
fifth/JJ
consecutive/JJ
quarter/NN
of/IN
flat-to-lower/JJ
earnings/NNS
for/IN
the/DT
big/JJ
electronics/NN
retailer/NN
,/,
disappointed/VBD
analysts/NNS
and/CC
traders/NNS
./.
Tandy/NNP
's/POS
stock/NN
fell/VBD
$/$
1.375/CD
a/DT
share/NN
to/TO
close/VB
at/IN
$/$
44/CD
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
Net/NN
for/IN
the/DT
quarter/NN
was/VBD
$/$
62.8/CD
million/CD
,/,
or/CC
73/CD
cents/NNS
a/DT
share/NN
,/,
down/RB
from/IN
$/$
64.9/CD
million/CD
,/,
or/CC
72/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
The/DT
company/NN
said/VBD
earnings/NNS
would/MD
have/VB
increased/VBN
if/IN
it/PRP
had/VBD
n't/RB
been/VBN
actively/RB
repurchasing/VBG
its/PRP$
shares/NNS
,/,
thus/RB
increasing/VBG
its/PRP$
interest/NN
expense/NN
and/CC
reducing/VBG
its/PRP$
interest/NN
income/NN
./.
Tandy/NNP
had/VBD
86.3/CD
million/CD
shares/NNS
outstanding/JJ
at/IN
Sept./NNP
30/CD
,/,
down/RB
from/IN
90/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
Revenue/NN
rose/VBD
5/CD
%/NN
to/TO
$/$
986/CD
million/CD
from/IN
$/$
937/CD
million/CD
./.
Tandy/NNP
said/VBD
consumer/NN
electronics/NN
sales/NNS
at/IN
its/PRP$
Radio/NNP
Shack/NNP
stores/NNS
have/VBP
been/VBN
slow/JJ
,/,
partly/RB
because/IN
of/IN
a/DT
lack/NN
of/IN
hot/JJ
,/,
new/JJ
products/NNS
./.
``/``
Radio/NNP
Shack/NNP
continues/VBZ
to/TO
be/VB
lackluster/JJ
,/,
''/''
said/VBD
Dennis/NNP
Telzrow/NNP
,/,
analyst/NN
with/IN
Eppler/NNP
,/,
Guerin/NNP
&/CC
Turner/NNP
in/IN
Dallas/NNP
./.
He/PRP
said/VBD
Tandy/NNP
``/``
has/VBZ
done/VBN
a/DT
decent/JJ
job/NN
''/''
increasing/VBG
sales/NNS
by/IN
manufacturing/VBG
computers/NNS
for/IN
others/NNS
and/CC
expanding/VBG
sales/NNS
of/IN
its/PRP$
Grid/NNP
Systems/NNP
Corp./NNP
subsidiary/NN
,/,
which/WDT
sells/VBZ
computers/NNS
to/TO
bigger/JJR
businesses/NNS
,/,
but/CC
``/``
it/PRP
's/VBZ
not/RB
enough/NN
to/TO
offset/VB
the/DT
problems/NNS
at/IN
Radio/NNP
Shack/NNP
./.
''/''
Sales/NNS
at/IN
Radio/NNP
Shack/NNP
stores/NNS
open/JJ
more/RBR
than/IN
a/DT
year/NN
grew/VBD
only/RB
2/CD
%/NN
in/IN
the/DT
quarter/NN
from/IN
a/DT
year/NN
earlier/RBR
,/,
he/PRP
said/VBD
./.
As/IN
a/DT
result/NN
,/,
Mr./NNP
Telzrow/NNP
said/VBD
he/PRP
cut/VBD
his/PRP$
fiscal/JJ
1990/CD
per-share/JJ
earnings/NNS
estimate/NN
for/IN
Tandy/NNP
to/TO
$/$
4.05/CD
from/IN
$/$
4.20/CD
./.
Tandy/NNP
earned/VBD
$/$
88.8/CD
million/CD
,/,
or/CC
$/$
3.64/CD
a/DT
share/NN
,/,
in/IN
the/DT
year/NN
ended/VBN
June/NNP
30/CD
./.
Barry/NNP
Bryant/NNP
,/,
an/DT
analyst/NN
with/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
,/,
said/VBD
Tandy/NNP
also/RB
has/VBZ
suffered/VBN
from/IN
lethargic/JJ
sales/NNS
of/IN
its/PRP$
computers/NNS
aimed/VBN
at/IN
the/DT
home/NN
and/CC
small-office/JJ
market/NN
,/,
which/WDT
are/VBP
less-advanced/JJ|JJR
and/CC
cheaper/JJR
than/IN
computers/NNS
aimed/VBN
at/IN
the/DT
corporate/JJ
market/NN
./.
Tandy/NNP
has/VBZ
added/VBN
several/JJ
new/JJ
products/NNS
to/TO
that/DT
line/NN
,/,
including/VBG
a/DT
laptop/JJ
computer/NN
priced/VBN
around/IN
$/$
1,000/CD
,/,
and/CC
is/VBZ
focusing/VBG
its/PRP$
advertising/NN
on/IN
the/DT
easy-to-use/JJ
software/NN
that/WDT
is/VBZ
packaged/VBN
with/IN
its/PRP$
machines/NNS
./.
Mr./NNP
Bryant/NNP
and/CC
other/JJ
analysts/NNS
hope/VBP
all/DT
those/DT
moves/NNS
will/MD
combine/VB
to/TO
help/VB
Tandy/NNP
's/POS
results/NNS
improve/VB
in/IN
the/DT
important/JJ
Christmas/NNP
quarter/NN
./.
``/``
They/PRP
've/VBP
been/VBN
promising/VBG
13/CD
%/NN
to/TO
15/CD
%/NN
growth/NN
based/VBN
on/IN
the/DT
strategic/JJ
moves/NNS
they/PRP
've/VBP
made/VBN
,/,
''/''
he/PRP
said/VBD
./.
``/``
If/IN
the/DT
earnings/NNS
acceleration/NN
is/VBZ
to/TO
take/VB
place/NN
,/,
that/WDT
should/MD
be/VB
the/DT
quarter/NN
./.
''/''
At/IN
a/DT
private/JJ
dinner/NN
Thursday/NNP
,/,
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
chief/JJ
executive/NN
Frederick/NNP
Joseph/NNP
delivered/VBD
a/DT
sobering/JJ
message/NN
about/IN
the/DT
junk/NN
bond/NN
market/NN
to/TO
officials/NNS
of/IN
Prudential/NNP
Insurance/NNP
Co./NNP
of/IN
America/NNP
./.
Mr./NNP
Joseph/NNP
conceded/VBD
the/DT
junk/NN
market/NN
was/VBD
in/IN
disarray/NN
,/,
according/VBG
to/TO
people/NNS
familiar/JJ
with/IN
the/DT
discussion/NN
./.
He/PRP
said/VBD
Drexel/NNP
--/:
the/DT
leading/JJ
underwriter/NN
of/IN
high-risk/JJ
junk/NN
bonds/NNS
--/:
could/MD
no/RB
longer/RB
afford/VB
to/TO
sell/VB
any/DT
junk/NN
offerings/NNS
if/IN
they/PRP
might/MD
later/RB
become/VB
troubled/JJ
because/IN
Drexel/NNP
risked/VBD
losing/VBG
its/PRP$
highly/RB
lucrative/JJ
junk/NN
franchise/NN
./.
The/DT
dinner/NN
was/VBD
a/DT
stark/JJ
confirmation/NN
that/IN
1989/CD
is/VBZ
the/DT
worst/JJS
year/NN
ever/RB
for/IN
the/DT
$/$
200/CD
billion/CD
junk/NN
market/NN
./.
And/CC
investors/NNS
and/CC
traders/NNS
alike/RB
say/VBP
the/DT
current/JJ
turmoil/NN
could/MD
take/VB
years/NNS
to/TO
resolve/VB
./.
Amid/IN
the/DT
market/NN
disorder/NN
,/,
even/RB
Drexel/NNP
,/,
which/WDT
has/VBZ
the/DT
widest/JJS
and/CC
most/RBS
loyal/JJ
following/NN
of/IN
junk/NN
bond/NN
investors/NNS
,/,
is/VBZ
pulling/VBG
in/IN
its/PRP$
horns/NNS
./.
Although/IN
the/DT
big/JJ
investment/NN
bank/NN
still/RB
dominates/VBZ
the/DT
junk/NN
market/NN
,/,
Drexel/NNP
has/VBZ
been/VBN
unable/JJ
to/TO
stem/VB
the/DT
fallout/NN
from/IN
growing/VBG
junk/NN
bond/NN
defaults/NNS
,/,
withdrawn/VBN
new/JJ
offerings/NNS
,/,
redemptions/NNS
by/IN
shareholders/NNS
in/IN
junk/NN
bond/NN
mutual/JJ
funds/NNS
and/CC
an/DT
exodus/NN
of/IN
once-devoted/JJ
investors/NNS
./.
For/IN
many/JJ
money/NN
managers/NNS
,/,
the/DT
past/JJ
four/CD
months/NNS
have/VBP
been/VBN
humiliating/JJ
./.
``/``
This/DT
is/VBZ
the/DT
worst/JJS
shakeout/NN
ever/RB
in/IN
the/DT
junk/NN
market/NN
,/,
and/CC
it/PRP
could/MD
take/VB
years/NNS
before/IN
it/PRP
's/VBZ
over/RB
,/,
''/''
says/VBZ
Mark/NNP
Bachmann/NNP
,/,
a/DT
senior/JJ
vice/NN
president/NN
at/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NN
,/,
a/DT
credit/NN
rating/NN
company/NN
./.
In/IN
the/DT
third/JJ
quarter/NN
,/,
for/IN
example/NN
,/,
junk/NN
bonds/NNS
--/:
those/DT
with/IN
less/JJR
than/IN
an/DT
investment-grade/JJ
rating/NN
--/:
showed/VBD
negative/JJ
returns/NNS
,/,
the/DT
only/JJ
major/JJ
sector/NN
of/IN
the/DT
bond/NN
market/NN
to/TO
do/VB
so/RB
./.
Since/IN
the/DT
end/NN
of/IN
last/JJ
year/NN
,/,
junk/NN
bonds/NNS
have/VBP
been/VBN
outperformed/VBN
by/IN
all/DT
categories/NNS
of/IN
investment-grade/JJ
bonds/NNS
,/,
including/VBG
ultra-safe/JJ
Treasury/NNP
securities/NNS
./.
The/DT
junk/NN
market/NN
,/,
which/WDT
mushroomed/VBD
to/TO
$/$
200/CD
billion/CD
from/IN
less/JJR
than/IN
$/$
2/CD
billion/CD
at/IN
the/DT
start/NN
of/IN
the/DT
decade/NN
,/,
has/VBZ
been/VBN
declining/VBG
for/IN
months/NNS
as/IN
issuers/NNS
have/VBP
stumbled/VBN
under/IN
the/DT
weight/NN
of/IN
hefty/JJ
interest/NN
payments/NNS
./.
The/DT
fragile/JJ
market/NN
received/VBD
its/PRP$
biggest/JJS
jolt/NN
last/JJ
month/NN
from/IN
Campeau/NNP
Corp./NNP
,/,
which/WDT
created/VBD
its/PRP$
U.S./NNP
retailing/NN
empire/NN
with/IN
more/JJR
than/IN
$/$
3/CD
billion/CD
in/IN
junk/NN
financing/NN
./.
Campeau/NNP
developed/VBD
a/DT
cash/NN
squeeze/NN
that/WDT
caused/VBD
it/PRP
to/TO
be/VB
tardy/JJ
on/IN
some/DT
interest/NN
payments/NNS
and/CC
to/TO
put/VB
its/PRP$
prestigious/JJ
Bloomingdale/NNP
's/POS
department/NN
store/NN
chain/NN
up/RB
for/IN
sale/NN
./.
At/IN
that/DT
point/NN
,/,
the/DT
junk/NN
market/NN
went/VBD
into/IN
a/DT
tailspin/NN
as/IN
buyers/NNS
disappeared/VBD
and/CC
investors/NNS
tried/VBD
to/TO
sell/VB
./.
In/IN
an/DT
interview/NN
,/,
Mr./NNP
Joseph/NNP
says/VBZ
his/PRP$
dinner/NN
discussion/NN
with/IN
the/DT
Prudential/JJ
executives/NNS
acknowledged/VBD
problems/NNS
for/IN
junk/NN
./.
``/``
What/WP
I/PRP
thought/VBD
I/PRP
was/VBD
saying/VBG
is/VBZ
that/IN
the/DT
market/NN
is/VBZ
troubled/JJ
but/CC
still/RB
viable/JJ
and/CC
,/,
appropriately/RB
enough/RB
,/,
quite/RB
quality-conscious/JJ
,/,
which/WDT
is/VBZ
not/RB
at/IN
all/DT
bad/JJ
,/,
''/''
he/PRP
says/VBZ
./.
``/``
Nobody/NN
's/VBZ
been/VBN
perfect/JJ
in/IN
their/PRP$
credit/NN
judgments/NNS
the/DT
past/JJ
couple/JJ
years/NNS
,/,
and/CC
we/PRP
're/VBP
going/VBG
to/TO
make/VB
sure/JJ
our/PRP$
default/NN
rates/NNS
are/VBP
going/VBG
to/TO
be/VB
in/IN
the/DT
acceptable/JJ
parameters/NNS
of/IN
the/DT
market/NN
./.
''/''
What/WP
has/VBZ
jolted/VBN
many/JJ
junk/NN
buyers/NNS
is/VBZ
the/DT
sudden/JJ
realization/NN
that/IN
junk/NN
bonds/NNS
can/MD
not/RB
necessarily/RB
be/VB
bought/VBN
and/CC
sold/VBN
with/IN
the/DT
ease/NN
of/IN
common/JJ
stocks/NNS
and/CC
many/JJ
investment-grade/JJ
bonds/NNS
./.
Unlike/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
where/WRB
buyers/NNS
and/CC
sellers/NNS
are/VBP
quickly/RB
matched/VBN
,/,
the/DT
junk/NN
market/NN
,/,
where/WRB
risky/JJ
corporate/JJ
loans/NNS
are/VBP
traded/VBN
,/,
is/VBZ
sometimes/RB
closed/VBN
for/IN
repairs/NNS
./.
At/IN
closely/RB
held/VBN
Deltec/NNP
Securities/NNP
Corp./NNP
,/,
junk/NN
bond/NN
money/NN
managers/NNS
Amy/NNP
K./NNP
Minella/NNP
and/CC
Hannah/NNP
H./NNP
Strasser/NNP
say/VBP
the/DT
problems/NNS
of/IN
the/DT
junk/NN
market/NN
go/VBP
deeper/RBR
than/IN
a/DT
temporary/JJ
malaise/NN
./.
In/IN
recent/JJ
months/NNS
,/,
they/PRP
say/VBP
,/,
there/EX
has/VBZ
been/VBN
heavy/JJ
selling/NN
of/IN
junk/NN
bonds/NNS
by/IN
some/DT
of/IN
the/DT
market/NN
's/POS
traditional/JJ
investors/NNS
,/,
while/IN
new/JJ
buyers/NNS
have/VBP
n't/RB
materialized/VBN
to/TO
replace/VB
them/PRP
./.
Wall/NNP
Street/NNP
securities/NNS
firms/NNS
,/,
``/``
the/DT
primary/JJ
source/NN
of/IN
liquidity/NN
for/IN
the/DT
high/JJ
yield/NN
market/NN
,/,
''/''
have/VBP
been/VBN
net/JJ
sellers/NNS
of/IN
junk/NN
bonds/NNS
because/RB
of/IN
trading/NN
losses/NNS
,/,
Deltec/NNP
said/VBD
in/IN
a/DT
recent/JJ
,/,
grim/JJ
report/NN
to/TO
customers/NNS
./.
Mutual/JJ
funds/NNS
have/VBP
also/RB
been/VBN
net/JJ
sellers/NNS
of/IN
junk/NN
bonds/NNS
as/IN
junk/NN
's/POS
relatively/RB
poor/JJ
performance/NN
and/CC
negative/JJ
press/NN
coverage/NN
have/VBP
produced/VBN
``/``
above-normal/JJ
''/''
redemptions/NNS
by/IN
shareholders/NNS
,/,
Deltec/NNP
said/VBD
./.
Investors/NNS
,/,
trying/VBG
to/TO
raise/VB
cash/NN
,/,
have/VBP
sold/VBN
``/``
large/JJ
liquid/JJ
issues/NNS
''/''
such/JJ
as/IN
RJR/NNP
Holdings/NNP
Corp./NNP
and/CC
Kroger/NNP
Co./NNP
;/:
declines/NNS
in/IN
these/DT
benchmark/JJ
issues/NNS
have/VBP
contributed/VBN
to/TO
the/DT
market/NN
's/POS
distress/NN
./.
And/CC
,/,
Deltec/NNP
said/VBD
,/,
buying/NN
has/VBZ
been/VBN
severely/RB
reduced/VBN
because/IN
savings/NNS
and/CC
loans/NNS
have/VBP
been/VBN
restricted/VBN
in/IN
their/PRP$
junk/NN
purchases/NNS
by/IN
recently/RB
passed/VBN
congressional/JJ
legislation/NN
./.
``/``
In/IN
fact/NN
,/,
savings/NNS
and/CC
loans/NNS
were/VBD
sellers/NNS
of/IN
high/JJ
yield/NN
holdings/NNS
throughout/IN
the/DT
quarter/NN
,/,
''/''
Deltec/NNP
said/VBD
./.
Ms./NNP
Minella/NNP
and/CC
Ms./NNP
Strasser/NNP
say/VBP
they/PRP
are/VBP
managing/VBG
their/PRP$
junk/NN
portfolios/NNS
defensively/RB
,/,
building/VBG
cash/NN
and/CC
selectively/RB
upgrading/VBG
the/DT
overall/JJ
quality/NN
./.
Meanwhile/RB
,/,
Prudential/NNP
,/,
the/DT
nation/NN
's/POS
largest/JJS
insurer/NN
and/CC
the/DT
biggest/JJS
investor/NN
in/IN
junk/NN
bonds/NNS
,/,
has/VBZ
seen/VBN
the/DT
value/NN
of/IN
its/PRP$
junk/NN
bond/NN
portfolio/NN
drop/VB
to/TO
$/$
6.5/CD
billion/CD
from/IN
$/$
7/CD
billion/CD
since/IN
August/NNP
because/IN
of/IN
falling/VBG
junk/NN
prices/NNS
./.
``/``
We/PRP
certainly/RB
do/VBP
have/VB
a/DT
lack/NN
of/IN
liquidity/NN
here/RB
,/,
and/CC
it/PRP
's/VBZ
something/NN
to/TO
be/VB
concerned/VBN
about/IN
,/,
''/''
says/VBZ
James/NNP
A./NNP
Gregoire/NNP
,/,
a/DT
managing/NN
director/NN
./.
``/``
I/PRP
have/VBP
no/DT
reason/NN
to/TO
think/VB
things/NNS
will/MD
get/VB
worse/JJR
,/,
but/CC
this/DT
market/NN
has/VBZ
a/DT
knack/NN
for/IN
surprising/VBG
us/PRP
./.
This/DT
market/NN
teaches/VBZ
us/PRP
to/TO
be/VB
humble/JJ
./.
''/''
The/DT
junk/NN
market/NN
's/POS
``/``
yield/NN
hogs/NNS
are/VBP
learning/VBG
a/DT
real/RB
painful/JJ
lesson/NN
,/,
''/''
he/PRP
says/VBZ
./.
Although/IN
the/DT
majority/NN
of/IN
junk/NN
bonds/NNS
outstanding/JJ
show/NN
no/DT
signs/NNS
of/IN
default/NN
,/,
the/DT
market/NN
has/VBZ
downgraded/VBN
many/JJ
junk/NN
issues/NNS
as/IN
if/IN
they/PRP
were/VBD
in/IN
trouble/NN
,/,
says/VBZ
Stuart/NNP
Reese/NNP
,/,
manager/NN
of/IN
Aetna/NNP
Life/NNP
&/CC
Casualty/NNP
Insurance/NNP
Co./NNP
's/POS
$/$
17/CD
billion/CD
investment-grade/JJ
public/JJ
bond/NN
portfolio/NN
./.
``/``
But/CC
we/PRP
think/VBP
the/DT
risks/NNS
are/VBP
there/RB
for/IN
things/NNS
getting/VBG
a/DT
lot/NN
worse/JJR
./.
And/CC
the/DT
risks/NNS
are/VBP
n't/RB
appropriate/JJ
for/IN
us/PRP
,/,
''/''
he/PRP
says/VBZ
./.
The/DT
big/JJ
insurer/NN
,/,
unlike/IN
Prudential/NNP
,/,
owns/VBZ
only/RB
about/RB
$/$
150/CD
million/CD
of/IN
publicly/RB
sold/VBN
junk/NN
bonds/NNS
./.
The/DT
string/NN
of/IN
big/JJ
junk/NN
bond/NN
defaults/NNS
,/,
which/WDT
have/VBP
been/VBN
a/DT
major/JJ
cause/NN
of/IN
the/DT
market/NN
's/POS
problems/NNS
this/DT
year/NN
,/,
probably/RB
will/MD
persist/VB
,/,
some/DT
analysts/NNS
say/VBP
./.
``/``
If/IN
anything/NN
,/,
we/PRP
're/VBP
going/VBG
to/TO
see/VB
defaults/NNS
increase/VB
because/IN
credit/NN
ratings/NNS
have/VBP
declined/VBN
,/,
''/''
says/VBZ
Paul/NNP
Asquith/NNP
,/,
associate/JJ
professor/NN
at/IN
the/DT
Massachusetts/NNP
Institute/NNP
of/IN
Technology/NNP
's/POS
Sloan/NNP
School/NNP
of/IN
Management/NNP
./.
Mr./NNP
Asquith/NNP
,/,
whose/WP$
study/NN
on/IN
junk/NN
bond/NN
defaults/NNS
caused/VBD
a/DT
furor/NN
on/IN
Wall/NNP
Street/NNP
when/WRB
it/PRP
was/VBD
disclosed/VBN
last/JJ
April/NNP
,/,
says/VBZ
this/DT
year/NN
's/POS
junk/NN
bond/NN
defaults/NNS
already/RB
show/VBP
a/DT
high/JJ
correlation/NN
with/IN
his/PRP$
own/JJ
findings/NNS
./.
His/PRP$
study/NN
showed/VBD
that/IN
junk/NN
bonds/NNS
over/IN
time/NN
had/VBD
a/DT
cumulative/JJ
default/NN
rate/NN
of/IN
34/CD
%/NN
./.
One/CD
indication/NN
of/IN
a/DT
growing/VBG
number/NN
of/IN
junk/NN
defaults/NNS
,/,
Mr./NNP
Asquith/NNP
says/VBZ
,/,
is/VBZ
that/DT
about/IN
half/NN
of/IN
the/DT
$/$
3/CD
billion/CD
of/IN
corporate/JJ
bonds/NNS
outstanding/JJ
that/WDT
have/VBP
been/VBN
lowered/VBN
to/TO
a/DT
default/NN
rating/NN
by/IN
S&P/NNP
this/DT
year/NN
are/VBP
junk/NN
bonds/NNS
sold/VBN
during/IN
the/DT
market/NN
's/POS
big/JJ
issue/NN
years/NNS
of/IN
1984/CD
through/IN
1986/CD
./.
These/DT
bonds/NNS
,/,
now/RB
rated/VBN
single-D/JJ
,/,
include/VBP
junk/NN
offerings/NNS
by/IN
AP/NNP
Industries/NNP
,/,
Columbia/NNP
Savings/NNP
Colorado/NNP
First/NNP
Texas/NNP
Savings/NNP
Association/NNP
,/,
Gilbraltar/NNP
Financial/NNP
Corp./NNP
,/,
Integrated/NNP
Resources/NNP
Inc./NNP
,/,
Metropolitan/NNP
Broadcasting/NNP
Corp./NNP
,/,
Resorts/NNP
International/NNP
Inc./NNP
,/,
Southmark/NNP
Corp./NNP
and/CC
Vyquest/NNP
Inc/NNP
./.
``/``
Obviously/RB
,/,
we/PRP
got/VBD
a/DT
lot/NN
more/JJR
smoke/NN
than/IN
fire/NN
from/IN
the/DT
people/NNS
who/WP
told/VBD
us/PRP
the/DT
market/NN
was/VBD
n't/RB
so/RB
risky/JJ
,/,
''/''
says/VBZ
Bradford/NNP
Cornell/NNP
,/,
professor/NN
of/IN
finance/NN
at/IN
University/NNP
of/IN
California/NNP
's/POS
Anderson/NNP
Graduate/NNP
School/NNP
of/IN
Management/NNP
in/IN
Los/NNP
Angeles/NNP
./.
Mr./NNP
Cornell/NNP
has/VBZ
just/RB
completed/VBN
a/DT
study/NN
that/WDT
finds/VBZ
that/IN
the/DT
risks/NNS
and/CC
returns/NNS
of/IN
junk/NN
bonds/NNS
are/VBP
less/JJR
than/IN
on/IN
common/JJ
stocks/NNS
but/CC
more/JJR
than/IN
on/IN
investment-grade/JJ
bonds/NNS
./.
Mr./NNP
Cornell/NNP
says/VBZ
:/:
``/``
The/DT
junk/NN
market/NN
is/VBZ
no/DT
bonanza/NN
as/IN
Drexel/NNP
claimed/VBD
,/,
but/CC
it/PRP
also/RB
is/VBZ
n't/RB
a/DT
disaster/NN
as/IN
the/DT
doomsayers/NNS
say/VBP
./.
''/''
Despite/IN
the/DT
junk/NN
market/NN
's/POS
problems/NNS
,/,
Drexel/NNP
continues/VBZ
to/TO
enjoy/VB
a/DT
loyalty/NN
among/IN
junk/NN
bond/NN
investors/NNS
that/IN
its/PRP$
Wall/NNP
Street/NNP
rivals/NNS
have/VBP
n't/RB
found/VBN
./.
During/IN
the/DT
past/JJ
three/CD
weeks/NNS
,/,
for/IN
example/NN
,/,
Drexel/NNP
has/VBZ
sold/VBN
$/$
1.3/CD
billion/CD
of/IN
new/JJ
junk/NN
bonds/NNS
for/IN
Turner/NNP
Broadcasting/NNP
Co./NNP
,/,
Uniroyal/NNP
Chemical/NNP
,/,
Continental/NNP
Air/NNP
and/CC
Duff/NNP
&/CC
Phelps/NNP
./.
Still/RB
,/,
the/DT
list/NN
of/IN
troubled/JJ
Drexel/NNP
bond/NN
offerings/NNS
dwarfs/VBZ
that/DT
of/IN
any/DT
firm/NN
on/IN
Wall/NNP
Street/NNP
,/,
as/IN
does/VBZ
its/PRP$
successful/JJ
offerings/NNS
./.
Troubled/JJ
Drexel-underwritten/JJ
issues/NNS
include/VBP
Resorts/NNP
International/NNP
,/,
Braniff/NNP
,/,
Integrated/NNP
Resources/NNP
,/,
SCI/NNP
TV/NN
,/,
Gillette/NNP
Holdings/NNP
,/,
Western/NNP
Electric/NNP
and/CC
Southmark/NNP
./.
``/``
Quality/JJ
junk/NN
bonds/NNS
will/MD
continue/VB
to/TO
trade/VB
well/RB
,/,
''/''
says/VBZ
Michael/NNP
Holland/NNP
,/,
chairman/NN
of/IN
Salomon/NNP
Brothers/NNP
Asset/NNP
Management/NNP
Inc/NNP
./.
``/``
But/CC
the/DT
deals/NNS
that/WDT
never/RB
should/MD
have/VB
been/VBN
brought/VBN
have/VBP
now/RB
become/VBN
nuclear/JJ
waste/NN
./.
''/''
As/IN
Helen/NNP
Boehm/NNP
,/,
who/WP
owns/VBZ
an/DT
art/NN
porcelain/NN
company/NN
,/,
sipped/VBD
her/PRP$
luncheon/NN
cocktail/NN
,/,
she/PRP
reeled/VBD
off/RP
the/DT
names/NNS
of/IN
a/DT
few/JJ
pals/NNS
--/:
Prince/NNP
Charles/NNP
,/,
Princess/NNP
Diana/NNP
,/,
Sarah/NNP
Ferguson/NNP
,/,
John/NNP
Kluge/NNP
,/,
Milton/NNP
Petrie/NNP
./.
Then/RB
,/,
flashing/VBG
a/DT
diamond/NN
ring/NN
as/RB
big/JJ
as/IN
the/DT
Ritz/NNP
``/``
my/JJ
day/NN
diamond/NN
,/,
darling/NN
''/''
)/)
,/,
she/PRP
told/VBD
her/PRP
two/CD
companions/NNS
that/IN
she/PRP
is/VBZ
on/IN
the/DT
``/``
board/NN
''/''
of/IN
the/DT
Vatican/NNP
Museum/NNP
in/IN
Rome/NNP
./.
As/IN
it/PRP
turns/VBZ
out/RP
,/,
the/DT
board/NN
has/VBZ
a/DT
lot/NN
of/IN
important/JJ
members/NNS
,/,
including/VBG
Winton/NNP
Blount/NNP
former/JJ
postmaster/NN
general/JJ
of/IN
the/DT
U.S./NNP
Mrs./NNP
Henry/NNP
Gaisman/NNP
widow/NN
of/IN
the/DT
inventor/NN
of/IN
auto-strop/JJ
razor/NN
Vincent/NNP
Murphy/NNP
an/DT
investment/NN
banker/NN
at/IN
Merrill/NNP
Lynch/NNP
&/CC
Co/NNP
./.
Mrs./NNP
Boehm/NNP
did/VBD
n't/RB
mention/VB
any/DT
of/IN
them/PRP
./.
``/``
Helen/NNP
Boehm/NNP
has/VBZ
a/DT
way/NN
with/IN
names/NNS
,/,
''/''
says/VBZ
James/NNP
Revson/NNP
,/,
a/DT
gossip/NN
columnist/NN
for/IN
Newsday/NNP
son/NN
of/IN
Joseph/NNP
Revson/NNP
,/,
a/DT
founder/NN
of/IN
Revlon/NNP
Like/IN
which/WDT
are/VBP
droppable/JJ
and/CC
which/WDT
are/VBP
not/RB
./.
With/IN
the/DT
fall/NN
social/JJ
season/NN
well/RB
under/IN
way/NN
,/,
name-droppers/NNS
are/VBP
out/RB
in/IN
force/NN
,/,
trying/VBG
to/TO
impress/VB
their/PRP$
betters/NNS
and/CC
sometimes/RB
put/VB
down/RP
their/PRP$
lessers/NNS
./.
But/CC
the/DT
truth/NN
is/VBZ
that/DT
almost/RB
everyone/NN
,/,
from/IN
real-estate/NN
agents/NNS
to/TO
city/NN
fathers/NNS
,/,
name-drops/VBZ
;/:
and/CC
a/DT
surprising/JJ
number/NN
of/IN
people/NNS
have/VBP
an/DT
ancient/JJ
uncle/NN
who/WP
claims/VBZ
he/PRP
lived/VBD
next/JJ
door/NN
to/TO
the/DT
cartoonist/NN
who/WP
did/VBD
the/DT
Katzenjammer/NNP
Kids/NNP
./.
case/NN
you/PRP
have/VBP
forgotten/VBN
,/,
his/PRP$
name/NN
was/VBD
Rudolph/NNP
Dirks/NNP
./.
``/``
Name-dropping/NN
is/VBZ
pervasive/JJ
and/CC
getting/VBG
more/RBR
so/RB
as/IN
society/NN
becomes/VBZ
more/RBR
complex/JJ
and/CC
alienating/JJ
,/,
''/''
says/VBZ
Herbert/NNP
Freudenberger/NNP
,/,
a/DT
New/NNP
York/NNP
psychoanalyst/NN
,/,
with/IN
a/DT
high-powered/JJ
clientele/NN
./.
``/``
It/PRP
can/MD
be/VB
an/DT
avenue/NN
of/IN
entrance/NN
to/TO
a/DT
certain/JJ
sector/NN
of/IN
society/NN
.../:
./.
It/PRP
provides/VBZ
some/DT
people/NNS
a/DT
needed/JJ
sense/NN
of/IN
affiliation/NN
and/CC
can/MD
help/VB
open/VB
up/RP
a/DT
conversation/NN
with/IN
someone/NN
you/PRP
do/VBP
n't/RB
know/VB
./.
''/''
Like/IN
the/DT
Long/NNP
Island/NNP
matron/NN
in/IN
the/DT
theater/NN
district/NN
the/DT
other/JJ
day/NN
who/WP
swore/VBD
to/TO
a/DT
stranger/NN
that/IN
she/PRP
once/RB
met/VBD
Liza/NNP
Minnelli/NNP
./.
``/``
I/PRP
was/VBD
having/VBG
a/DT
drink/NN
in/IN
Sardi/NNP
's/POS
,/,
when/WRB
all/RB
of/IN
a/DT
sudden/JJ
I/PRP
saw/VBD
a/DT
woman/NN
's/POS
backside/NN
coming/VBG
up/RP
the/DT
steps/NNS
on/IN
the/DT
second/JJ
floor/NN
and/CC
she/PRP
was/VBD
wearing/VBG
sequined/JJ
slacks/NNS
./.
I/PRP
knew/VBD
it/PRP
was/VBD
someone/NN
important/JJ
,/,
so/IN
I/PRP
followed/VBD
her/PRP
into/IN
the/DT
ladies/NNS
room/NN
and/CC
sure/RB
enough/RB
,/,
it/PRP
was/VBD
Liza/NNP
./.
So/IN
I/PRP
said/VBD
,/,
`/``
Hello/UH
./.
'/''
And/CC
she/PRP
said/VBD
,/,
`/``
Hello/UH
./.
'/''
Can/MD
you/PRP
imagine/VB
?/.
Liza/NNP
said/VBD
hello/UH
to/TO
me/PRP
./.
''/''
Some/DT
people/NNS
must/MD
drop/VB
names/NNS
--/:
call/VB
it/PRP
an/DT
irresistible/JJ
impulse/NN
./.
``/``
They/PRP
ca/MD
n't/RB
help/VB
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about/IN
the/DT
big/JJ
important/JJ
people/NNS
they/PRP
know/VBP
,/,
even/RB
if/IN
they/PRP
do/VBP
n't/RB
really/RB
know/VB
them/PRP
,/,
''/''
says/VBZ
Dr./NNP
Freudenberger/NNP
./.
Beauregard/NNP
Houston-Montgomery/NNP
,/,
a/DT
New/NNP
York/NNP
writer/NN
who/WP
changed/VBD
his/PRP$
name/NN
from/IN
William/NNP
Stretch/NNP
in/IN
1980/CD
,/,
is/VBZ
an/DT
inveterate/JJ
name-dropper/NN
./.
``/``
I/PRP
do/VBP
it/PRP
innately/RB
and/CC
pathologically/RB
,/,
and/CC
while/IN
it/PRP
may/MD
occasionally/RB
get/VB
me/PRP
into/IN
trouble/NN
,/,
it/PRP
's/VBZ
also/RB
gotten/VBN
me/PRP
access/NN
to/TO
parties/NNS
and/CC
society/NN
,/,
''/''
he/PRP
says/VBZ
./.
Name-dropping/NN
recently/RB
helped/VBD
Mr./NNP
Houston-Montgomery/NNP
crash/VB
a/DT
party/NN
Fame/NNP
magazine/NN
threw/VBD
for/IN
100/CD
of/IN
the/DT
2,809/CD
people/NNS
mentioned/VBN
in/IN
the/DT
diaries/NNS
of/IN
the/DT
late/JJ
Andy/NNP
Warhol/NNP
./.
``/``
I/PRP
guess/VBP
I/PRP
might/MD
have/VB
asked/VBD
Beauregard/NNP
to/TO
leave/VB
,/,
but/CC
he/PRP
drops/VBZ
so/RB
many/JJ
good/JJ
names/NNS
,/,
we/PRP
decided/VBD
to/TO
let/VB
him/PRP
stay/VB
,/,
''/''
says/VBZ
Steven/NNP
Greenberg/NNP
,/,
publisher/NN
of/IN
Fame/NNP
./.
``/``
After/IN
all/DT
,/,
Warhol/NNP
was/VBD
the/DT
ultimate/JJ
namedropper/NN
,/,
dropping/VBG
five/CD
a/DT
day/NN
in/IN
his/PRP$
diaries/NNS
./.
And/CC
Beauregard/NNP
was/VBD
mentioned/VBN
twice/RB
--/:
although/IN
very/JJ
briefly/NN
and/CC
in/IN
passing/VBG
./.
''/''
Mr./NNP
Houston-Montgomery/NNP
says/VBZ
that/IN
at/IN
the/DT
party/NN
he/PRP
waved/VBD
to/TO
Malcolm/NNP
Forbes/NNP
,/,
publisher/NN
of/IN
Forbes/NNP
magazine/NN
``/``
We've/NN
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in/IN
the/DT
columns/NNS
together/RB
''/''
)/)
,/,
Mary/NNP
Boone/NNP
,/,
a/DT
New/NNP
York/NNP
art/NN
dealer/NN
``/``
I/PRP
think/VBP
she/PRP
knows/VBZ
me/PRP
,/,
but/CC
I/PRP
'm/VBP
not/RB
sure/JJ
''/''
)/)
and/CC
Bridget/NNP
Fonda/NNP
,/,
the/DT
actress/NN
``/``
She/NN
knows/VBZ
me/PRP
,/,
but/CC
we/PRP
're/VBP
not/RB
really/RB
the/DT
best/JJS
of/IN
friends/NNS
''/''
)/)
./.
Mr./NNP
Revson/NNP
,/,
the/DT
gossip/NN
columnist/NN
,/,
says/VBZ
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people/NNS
who/WP
actually/RB
plan/VBP
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names/NNS
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are/VBP
going/VBG
to/TO
drop/VB
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attending/VBG
a/DT
party/NN
./.
These/DT
droppers/NNS
do/VBP
n't/RB
flaunt/VB
only/RB
their/PRP$
friendships/NNS
with/IN
the/DT
Trumps/NNPS
,/,
Brooke/NNP
Astor/NNP
or/CC
Georgette/NNP
Mosbacher/NNP
./.
``/``
They/PRP
even/RB
drop/VBP
semi-obscure/JJ
names/NNS
like/IN
Wolfgang/NNP
Flottl/NNP
,/,
whom/WP
everybody/NN
these/DT
days/NNS
apparently/RB
has/VBZ
heard/VBN
of/IN
but/CC
no/DT
one/NN
really/RB
knows/VBZ
,/,
''/''
says/VBZ
Mr./NNP
Revson/NNP
./.
``/``
It/PRP
's/VBZ
the/DT
one-upsmanship/NN
of/IN
name-dropping/NN
that/IN
counts/VBZ
./.
''/''
But/CC
name-dropping/NNP
has/VBZ
other/JJ
benefits/NNS
,/,
often/RB
civic/JJ
./.
In/IN
the/DT
name/NN
of/IN
civic/JJ
pride/NN
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from/IN
the/DT
desire/NN
to/TO
nullify/VB
a/DT
negative/JJ
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,/,
some/DT
city/NN
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their/PRP$
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the/DT
most/RBS
recognizable/JJ
names/NNS
the/DT
city/NN
has/VBZ
to/TO
offer/VB
./.
Take/VB
Cleveland/NNP
./.
It/PRP
has/VBZ
gotten/VBN
a/DT
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rep/NN
because/IN
its/PRP$
once/RB
heavily/RB
polluted/JJ
Cuyahoga/NNP
River/NNP
caught/VBD
fire/NN
,/,
because/IN
former/JJ
Mayor/NNP
Ralph/NNP
Perk/NNP
set/VBD
his/PRP$
hair/NN
on/IN
fire/NN
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an/DT
acetylene/NN
torch/NN
and/CC
because/IN
its/PRP$
proposed/JJ
Rock/NNP
'n'/CC
Roll/NNP
Hall/NNP
of/IN
Fame/NNP
was/VBD
recently/RB
refused/VBN
an/DT
urban-development/NN
grant/NN
./.
Some/DT
people/NNS
call/VBP
it/PRP
``/``
The/NNP
Mistake/NNP
on/IN
the/NNP
Lake/NNP
''/''
--/:
Lake/NNP
Erie/NNP
,/,
that/WDT
is/VBZ
./.
``/``
It/PRP
helps/VBZ
to/TO
point/VB
out/RP
how/WRB
many/JJ
important/JJ
people/NNS
came/VBD
through/IN
Cleveland/NNP
on/IN
their/PRP$
way/NN
to/TO
the/DT
top/NN
,/,
''/''
says/VBZ
George/NNP
Miller/NNP
,/,
executive/JJ
director/NN
of/IN
the/DT
New/NNP
Cleveland/NNP
Campaign/NNP
,/,
a/DT
nonprofit/JJ
organization/NN
devoted/VBN
to/TO
citing/VBG
the/DT
city/NN
's/POS
strengths/NNS
./.
Mr./NNP
Miller/NNP
notes/VBZ
that/IN
actor/NN
Paul/NNP
Newman/NNP
's/POS
family/NN
owned/VBD
a/DT
sporting-goods/NNS
store/NN
in/IN
Cleveland/NNP
,/,
that/IN
the/DT
late/JJ
actress/NN
Margaret/NNP
Hamilton/NNP
,/,
who/WP
played/VBD
the/DT
bad/JJ
witch/NN
in/IN
``/``
The/DT
Wizard/NNP
Of/IN
Oz/NNP
,/,
''/''
once/RB
ran/VBD
a/DT
nursery/NN
school/NN
in/IN
Cleveland/NNP
and/CC
that/IN
comedian/NN
Bob/NNP
Hope/NNP
's/POS
father/NN
,/,
a/DT
stonemason/NN
,/,
once/RB
worked/VBN
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a/DT
church/NN
next/JJ
to/TO
Severence/NNP
Hall/NNP
,/,
Cleveland/NNP
's/POS
main/JJ
concert/NN
hall/NN
./.
``/``
Power/NN
names/NNS
like/IN
that/DT
do/VBP
n't/RB
hurt/VB
the/DT
city/NN
's/POS
reputation/NN
,/,
''/''
Mr./NNP
Miller/NNP
says/VBZ
./.
In/IN
Hollywood/NNP
,/,
an/DT
average/JJ
family/NN
can/MD
gain/VB
cachet/NN
from/IN
moving/VBG
into/IN
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home/NN
vacated/VBN
by/IN
the/DT
famous/JJ
or/CC
near/RB
famous/JJ
./.
``/``
Why/WRB
we/PRP
even/RB
just/RB
sold/VBD
a/DT
three-bedroom/JJ
house/NN
in/IN
Van/NNP
Nuys/NNP
and/CC
were/VBD
able/JJ
to/TO
keep/VB
the/DT
price/NN
firm/JJ
in/IN
a/DT
weak/JJ
real-estate/NN
market/NN
by/IN
noting/VBG
that/IN
the/DT
original/JJ
Lone/NNP
Ranger/NNP
lived/VBD
there/EX
,/,
''/''
says/VBZ
David/NNP
Rambo/NNP
,/,
a/DT
sales/NNS
associate/NN
with/IN
Jon/NNP
Douglas/NNP
Co./NNP
,/,
a/DT
Los/NNP
Angeles/NNP
real-estate/NN
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./.
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Most/JJS
people/NNS
ca/MD
n't/RB
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remember/VB
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./.
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It/PRP
is/VBZ
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./.
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says/VBZ
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3.2-acre/JJ
property/NN
overlooking/VBG
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San/NNP
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Valley/NNP
is/VBZ
priced/VBN
at/IN
$/$
4/CD
million/CD
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Flynn/NNP
once/RB
lived/VBD
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./.
``/``
If/IN
Flynn/NNP
had/VBD
n't/RB
lived/VBN
there/EX
,/,
the/DT
property/NN
might/MD
have/VB
been/VBN
priced/VBN
$/$
1/CD
million/CD
lower/JJR
,/,
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says/VBZ
Mr./NNP
Rambo/NNP
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noting/VBG
that/IN
Flynn/NNP
's/POS
house/NN
has/VBZ
been/VBN
bulldozed/VBN
,/,
and/CC
only/RB
the/DT
swimming/VBG
pool/NN
remains/VBZ
./.
Press/NNP
agents/NNS
and/CC
public-relations/NNS
practitioners/NNS
are/VBP
notorious/JJ
name-droppers/NNS
./.
And/CC
some/DT
even/RB
do/VBP
it/PRP
with/IN
malice/NN
aforethought/JJ
./.
Len/NNP
Kessler/NNP
,/,
a/DT
financial/JJ
publicist/NN
in/IN
New/NNP
York/NNP
,/,
sometimes/RB
uses/VBZ
it/PRP
to/TO
get/VB
the/DT
attention/NN
of/IN
journalists/NNS
who/WP
try/VBP
to/TO
avoid/VB
him/PRP
./.
He/PRP
says/VBZ
that/IN
when/WRB
Dan/NNP
Dorfman/NNP
,/,
a/DT
financial/JJ
columnist/NN
with/IN
USA/NNP
Today/NNP
,/,
has/VBZ
n't/RB
returned/VBD
his/PRP$
phone/NN
calls/VBZ
,/,
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leaves/VBZ
messages/NNS
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saying/VBG
that/IN
he/PRP
has/VBZ
an/DT
important/JJ
story/NN
on/IN
Donald/NNP
Trump/NNP
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Riklis/NNP
or/CC
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./.
He/PRP
admits/VBZ
he/PRP
has/VBZ
no/DT
story/NN
on/IN
any/DT
of/IN
them/PRP
on/IN
these/DT
occasions/NNS
./.
``/``
But/CC
it/PRP
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and/CC
it/PRP
makes/VBZ
me/PRP
feel/VB
better/RBR
for/IN
the/DT
times/NNS
he/PRP
's/VBZ
given/VBN
me/PRP
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brushoff/NN
,/,
''/''
Mr./NNP
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says/VBZ
./.
There/EX
are/VBP
,/,
of/IN
course/NN
,/,
obvious/JJ
dangers/NNS
to/TO
blatant/JJ
,/,
unsubstantiated/JJ
name-dropping/NN
./.
Jeffry/NNP
Thal/NNP
,/,
a/DT
publicity/NN
agent/NN
for/IN
the/DT
Lantz/NNP
Office/NNP
in/IN
Los/NNP
Angeles/NNP
,/,
warns/VBZ
that/IN
dropping/VBG
the/DT
wrong/JJ
name/NN
labels/VBZ
the/DT
dropper/NN
as/IN
a/DT
fake/NN
and/CC
a/DT
fraud/NN
./.
``/``
Get/VB
caught/VBN
and/CC
you/PRP
're/VBP
dead/JJ
in/IN
the/DT
water/NN
,/,
''/''
says/VBZ
Mr./NNP
Thal/NNP
./.
Mr./NNP
Thal/NNP
says/VBZ
that/IN
Elizabeth/NNP
Taylor/NNP
,/,
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client/NN
,/,
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hates/VBZ
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called/VBN
`/``
Liz/NNP
./.
'/''
.../:
If/IN
directors/NNS
or/CC
producers/NNS
phone/VBP
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say/VB
they/PRP
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`/``
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'/''
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./.
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`/``
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./.
'/''
''/''
In/IN
New/NNP
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social/JJ
wife/NN
of/IN
author/NN
William/NNP
Buckley/NNP
,/,
has/VBZ
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nicknames/NNS
``/``
Mrs./NNP
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./.
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And/CC
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calls/VBZ
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./.
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But/CC
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`/``
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'/''
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you/PRP
're/VBP
not/RB
in/IN
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circle/NN
,/,
because/IN
she/PRP
does/VBZ
n't/RB
use/VB
that/DT
name/NN
,/,
''/''
says/VBZ
Joan/NNP
Kron/NNP
,/,
editor-in-chief/NN
of/IN
Avenue/NNP
magazine/NN
,/,
a/DT
monthly/JJ
publication/NN
sent/VBN
to/TO
all/PDT
the/DT
right/JJ
names/NNS
./.
John/NNP
Spencer/NNP
Churchill/NNP
,/,
a/DT
nephew/NN
of/IN
the/DT
late/JJ
Sir/NNP
Winston/NNP
Churchill/NNP
,/,
former/JJ
prime/JJ
minister/NN
of/IN
Great/NNP
Britain/NNP
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is/VBZ
n't/RB
that/RB
impressed/JJ
with/IN
most/JJS
name-droppers/NNS
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meets/VBZ
./.
That/DT
's/VBZ
because/IN
they/PRP
only/RB
drop/VBP
``/``
mere/JJ
names/NNS
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says/VBZ
Mr./NNP
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./.
Currently/RB
writing/VBG
his/PRP$
memoirs/NNS
,/,
Mr./NNP
Churchill/NNP
,/,
an/DT
artist/NN
,/,
tells/VBZ
how/WRB
tycoons/NNS
such/JJ
as/IN
the/DT
late/JJ
Jean/NNP
Paul/NNP
Getty/NNP
,/,
the/DT
oil/NN
billionnaire/NN
,/,
were/VBD
,/,
in/IN
fact/NN
,/,
known/VBN
only/RB
by/IN
one/CD
initial/NN
,/,
their/PRP$
last/JJ
./.
``/``
When/WRB
you/PRP
're/VBP
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the/DT
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,/,
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ask/VBP
whether/IN
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've/VBP
spoken/VBN
to/TO
`/``
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./.
'/''
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they/PRP
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mean/VBP
./.
But/CC
no/DT
one/NN
else/RB
does/VBZ
./.
Now/RB
that/DT
's/VBZ
name-dropping/NN
,/,
if/IN
you/PRP
know/VBP
what/WP
I/PRP
mean/VBP
./.
''/''
Part/NN
of/IN
a/DT
Series/NN
SMYRNA/NNP
,/,
Ga./NNP
--/:
The/DT
auto-dealer/NN
strip/NN
in/IN
this/DT
booming/JJ
suburb/NN
runs/VBZ
nearly/RB
five/CD
miles/NNS
along/IN
Cobb/NNP
Parkway/NNP
,/,
stretching/VBG
from/IN
the/DT
Perimeter/NNP
highway/NN
that/WDT
circles/VBZ
Atlanta/NNP
to/TO
the/DT
``/``
Big/NNP
Chicken/NNP
,/,
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a/DT
pullet-roofed/JJ
fast-food/NN
restaurant/NN
and/CC
local/JJ
landmark/NN
./.
Twenty/CD
years/NNS
ago/RB
,/,
in/IN
the/DT
infancy/NN
of/IN
suburban/JJ
sprawl/NN
,/,
just/RB
a/DT
handful/NN
of/IN
dealerships/NNS
were/VBD
here/RB
./.
Now/RB
there/EX
are/VBP
23/CD
./.
Alongside/IN
such/JJ
long-familiar/JJ
names/NNS
as/IN
Chevrolet/NNP
,/,
Ford/NNP
and/CC
Dodge/NNP
are/VBP
nameplates/NNS
that/WDT
did/VBD
n't/RB
exist/VB
until/IN
three/CD
years/NNS
ago/RB
:/:
Acura/NNP
,/,
Sterling/NNP
,/,
Hyundai/NNP
./.
Under/IN
construction/NN
is/VBZ
the/DT
strip/NN
's/POS
24th/JJ
showroom/NN
,/,
the/DT
future/JJ
home/NN
of/IN
Lexus/NNP
,/,
a/DT
luxury/NN
marque/NN
launched/VBN
by/IN
Toyota/NNP
Motor/NNP
Corp./NNP
just/RB
two/CD
months/NNS
ago/RB
./.
The/DT
1980s/CD
have/VBP
spawned/VBN
an/DT
explosion/NN
of/IN
consumer/NN
choice/NN
in/IN
America/NNP
,/,
in/IN
everything/NN
from/IN
phone/NN
companies/NNS
to/TO
colas/NNS
./.
And/CC
especially/RB
,/,
as/IN
the/DT
Cobb/NNP
Parkway/NNP
strip/NN
attests/VBZ
,/,
in/IN
cars/NNS
./.
Americans/NNPS
now/RB
can/MD
choose/VB
among/IN
572/CD
different/JJ
models/NNS
of/IN
cars/NNS
,/,
vans/NNS
and/CC
trucks/NNS
,/,
up/RB
from/IN
just/RB
408/CD
when/WRB
the/DT
decade/NN
began/VBD
,/,
according/VBG
to/TO
Automotive/NNP
News/NNP
,/,
a/DT
trade/NN
publication/NN
./.
For/IN
car/NN
marketers/NNS
,/,
it/PRP
has/VBZ
become/VBN
a/DT
much/RB
tougher/JJR
battle/NN
to/TO
keep/VB
loyal/JJ
customers/NNS
from/IN
defecting/VBG
to/TO
one/CD
of/IN
the/DT
new/JJ
makes/NNS
on/IN
the/DT
block/NN
./.
For/IN
American/JJ
car/NN
buyers/NNS
,/,
the/DT
proliferation/NN
of/IN
choice/NN
is/VBZ
both/DT
liberating/JJ
and/CC
confusing/JJ
./.
Malcolm/NNP
MacDougall/NNP
,/,
vice/NN
chairman/NN
of/IN
the/DT
Jordan/NNP
,/,
McGrath/NNP
,/,
Case/NNP
&/CC
Taylor/NNP
advertising/NN
agency/NN
in/IN
New/NNP
York/NNP
,/,
calls/VBZ
the/DT
proliferation/NN
``/``
nameplate/NN
mania/NN
./.
''/''
He/PRP
says/VBZ
the/DT
number/NN
of/IN
automobile/NN
choices/NNS
is/VBZ
causing/VBG
stress/NN
among/IN
consumers/NNS
today/NN
,/,
and/CC
that/IN
people/NNS
will/MD
simply/RB
ignore/VB
new/JJ
models/NNS
that/WDT
lack/VBP
a/DT
well-defined/JJ
image/NN
./.
``/``
The/DT
winners/NNS
,/,
''/''
he/PRP
predicts/VBZ
,/,
``/``
will/MD
be/VB
brands/NNS
from/IN
car/NN
makers/NNS
that/WDT
have/VBP
traditionally/RB
been/VBN
associated/VBN
with/IN
quality/NN
and/CC
value/NN
./.
''/''
He/PRP
says/VBZ
it/PRP
's/VBZ
important/JJ
for/IN
a/DT
new/JJ
make/NN
to/TO
be/VB
as/RB
distinctive/JJ
as/IN
possible/JJ
while/IN
still/RB
retaining/VBG
links/NNS
to/TO
the/DT
parent/JJ
company/NN
's/POS
quality/JJ
image/NN
./.
He/PRP
applauds/VBZ
Toyota/NNP
and/CC
Nissan/NNP
Motor/NNP
Co./NNP
for/IN
creating/VBG
separate/JJ
divisions/NNS
for/IN
their/PRP$
new/JJ
luxury/NN
models/NNS
,/,
rather/RB
than/IN
simply/RB
adding/VBG
more/JJR
nameplates/NNS
to/TO
their/PRP$
standard/JJ
car/NN
lines/NNS
./.
Some/DT
auto/NN
executives/NNS
believe/VBP
the/DT
benefits/NNS
of/IN
more/JJR
choice/NN
outweigh/VBP
the/DT
drawbacks/NNS
./.
``/``
There/EX
's/POS
more/JJR
noise/NN
out/RB
there/RB
,/,
and/CC
the/DT
consumer/NN
may/MD
have/VB
to/TO
work/VB
harder/RBR
to/TO
cut/VB
through/IN
it/PRP
,/,
''/''
says/VBZ
Vincent/NNP
P./NNP
Barabba/NNP
,/,
executive/JJ
director/NN
of/IN
market/NN
research/NN
and/CC
planning/NN
at/IN
General/NNP
Motors/NNP
Corp/NNP
./.
``/``
But/CC
the/DT
reward/NN
is/VBZ
that/IN
there/EX
's/POS
less/JJR
need/NN
to/TO
make/VB
tradeoffs/NNS
''/''
in/IN
choosing/VBG
one/PRP
's/POS
wheels/NNS
./.
Jeanene/NNP
Page/NNP
,/,
of/IN
North/NNP
Salt/NNP
Lake/NNP
City/NNP
,/,
Utah/NNP
,/,
likes/VBZ
the/DT
broader/JJR
selection/NN
./.
She/PRP
wants/VBZ
something/NN
big/JJ
,/,
and/CC
already/RB
has/VBZ
looked/VBN
at/IN
the/DT
Chrysler/NNP
New/NNP
Yorker/NNP
and/CC
Lincoln/NNP
Town/NNP
Car/NNP
./.
Now/RB
,/,
the/DT
55-year-old/JJ
car/NN
shopper/NN
is/VBZ
zeroing/VBG
in/RP
on/IN
a/DT
full-sized/JJ
van/NN
,/,
figuring/VBG
that/IN
it/PRP
's/VBZ
just/RB
the/DT
thing/NN
to/TO
haul/VB
nine/CD
grandchildren/NNS
and/CC
pull/VB
a/DT
boat/NN
at/IN
the/DT
same/JJ
time/NN
./.
``/``
That/DT
seems/VBZ
to/TO
be/VB
what/WP
all/DT
my/PRP$
friends/NNS
are/VBP
using/VBG
to/TO
take/VB
the/DT
grandkids/NNS
to/TO
the/DT
lake/NN
,/,
''/''
she/PRP
says/VBZ
./.
Market/NN
segmentation/NN
in/IN
cars/NNS
is/VBZ
n't/RB
new/JJ
,/,
but/CC
it/PRP
's/VBZ
far/RB
more/RBR
extensive/JJ
than/IN
when/WRB
Alfred/NNP
P./NNP
Sloan/NNP
Jr./NNP
conceived/VBD
the/DT
idea/NN
50/CD
years/NNS
ago/RB
./.
The/DT
legendary/JJ
GM/NNP
chairman/NN
declared/VBD
that/DT
his/PRP$
company/NN
would/MD
make/VB
``/``
a/DT
car/NN
for/IN
every/DT
purse/NN
and/CC
purpose/NN
./.
''/''
Now/RB
there/EX
are/VBP
many/JJ
cars/NNS
for/IN
every/DT
purse/NN
and/CC
purpose/NN
./.
Just/RB
four/CD
years/NNS
ago/RB
,/,
GM/NNP
planners/NNS
divided/VBD
the/DT
combined/JJ
car/NN
and/CC
truck/NN
market/NN
into/IN
seven/CD
segments/NNS
./.
Today/NN
,/,
they/PRP
identify/VBP
19/CD
distinct/JJ
segments/NNS
for/IN
cars/NNS
,/,
and/CC
another/DT
11/CD
for/IN
trucks/NNS
and/CC
vans/NNS
./.
The/DT
number/NN
of/IN
makes/NNS
has/VBZ
mushroomed/VBN
because/IN
the/DT
U.S./NNP
is/VBZ
the/DT
world/NN
's/POS
biggest/JJS
and/CC
richest/JJS
market/NN
for/IN
automobiles/NNS
;/:
virtually/RB
every/DT
auto/NN
maker/NN
wants/VBZ
to/TO
sell/VB
here/RB
./.
For/IN
every/DT
brand/NN
like/IN
Renault/NNP
or/CC
Fiat/NNP
that/WDT
has/VBZ
been/VBN
squeezed/VBN
out/RP
,/,
others/NNS
such/JJ
as/IN
Isuzu/NNP
,/,
Daihatsu/NNP
and/CC
Mitsubishi/NNP
have/VBP
come/VBN
in/RP
./.
Detroit/NNP
tries/VBZ
to/TO
counter/VB
the/DT
foreign/JJ
invasion/NN
with/IN
new/JJ
brands/NNS
of/IN
its/PRP$
own/JJ
./.
GM/NNP
launched/VBD
the/DT
Geo/NNP
marque/NN
this/DT
year/NN
to/TO
sell/VB
cars/NNS
made/VBN
in/IN
partnership/NN
with/IN
foreign/JJ
auto/NN
makers/NNS
,/,
and/CC
next/JJ
year/NN
GM/NNP
's/POS
long-awaited/JJ
Saturn/NNP
cars/NNS
will/MD
make/VB
their/PRP$
debut/NN
./.
Ford/NNP
Motor/NNP
Co./NNP
created/VBD
the/DT
Merkur/NNP
nameplate/NN
in/IN
1985/CD
to/TO
sell/VB
its/PRP$
German-made/JJ
touring/NN
sedans/NNS
in/IN
the/DT
U.S/NNP
./.
But/CC
slow/JJ
sales/NNS
forced/VBD
Ford/NNP
to/TO
kill/VB
the/DT
brand/NN
just/RB
last/JJ
week/NN
./.
When/WRB
consumers/NNS
have/VBP
so/RB
many/JJ
choices/NNS
,/,
brand/NN
loyalty/NN
is/VBZ
much/RB
harder/JJR
to/TO
maintain/VB
./.
The/DT
Wall/NNP
Street/NNP
Journal/NNP
's/POS
``/``
American/JJ
Way/NN
of/IN
Buying/VBG
''/''
survey/NN
found/VBD
that/IN
53/CD
%/NN
of/IN
today/NN
's/POS
car/NN
buyers/NNS
tend/VBP
to/TO
switch/VB
brands/NNS
./.
For/IN
the/DT
survey/NN
,/,
Peter/NNP
D./NNP
Hart/NNP
Research/NNP
Associates/NNP
and/CC
the/DT
Roper/NNP
Organization/NNP
each/DT
asked/VBD
about/RB
2,000/CD
U.S./NNP
consumers/NNS
about/IN
their/PRP$
buying/NN
habits/NNS
./.
Which/WDT
cars/NNS
do/VBP
Americans/NNP
favor/VB
most/RBS
these/DT
days/NNS
?/.
It/PRP
's/VBZ
hard/JJ
to/TO
generalize/VB
,/,
but/CC
age/NN
seems/VBZ
to/TO
be/VB
the/DT
best/JJS
predictor/NN
./.
Adults/NNS
under/IN
age/NN
30/CD
like/VBP
sports/NNS
cars/NNS
,/,
luxury/NN
cars/NNS
,/,
convertibles/NNS
and/CC
imports/NNS
far/RB
more/RBR
than/IN
their/PRP$
elders/NNS
do/VBP
./.
Three/CD
of/IN
every/DT
10/CD
buyers/NNS
under/IN
30/CD
would/MD
prefer/VB
to/TO
buy/VB
a/DT
sports/NNS
car/NN
,/,
compared/VBN
with/IN
just/RB
16/CD
%/NN
of/IN
adults/NNS
30/CD
and/CC
over/RB
,/,
according/VBG
to/TO
the/DT
Journal/NNP
survey/NN
./.
Young/JJ
consumers/NNS
prefer/VBP
luxury/NN
cars/NNS
by/IN
a/DT
37/CD
%/NN
to/TO
28/CD
%/NN
margin/NN
--/:
even/RB
though/IN
older/JJR
buyers/NNS
,/,
because/IN
of/IN
their/PRP$
incomes/NNS
,/,
are/VBP
more/RBR
likely/JJ
to/TO
actually/RB
purchase/VB
a/DT
luxury/NN
car/NN
./.
Perhaps/RB
most/RBS
striking/JJ
,/,
35/CD
%/NN
of/IN
households/NNS
headed/VBN
by/IN
people/NNS
aged/VBN
18/CD
to/TO
44/CD
have/VBP
at/IN
least/JJS
one/CD
foreign/JJ
car/NN
./.
That/DT
's/VBZ
true/JJ
of/IN
only/RB
14/CD
%/NN
of/IN
households/NNS
headed/VBN
by/IN
someone/NN
60/CD
or/CC
older/JJR
./.
Generally/RB
,/,
imports/NNS
appeal/VBP
most/RBS
to/TO
Americans/NNPS
who/WP
live/VBP
in/IN
the/DT
West/NNP
and/CC
are/VBP
well-educated/JJ
,/,
affluent/JJ
and/CC
,/,
especially/RB
,/,
young/JJ
./.
``/``
For/IN
many/JJ
baby/NN
boomers/NNS
,/,
buying/VBG
a/DT
domestic/JJ
car/NN
is/VBZ
a/DT
totally/RB
foreign/JJ
experience/NN
,/,
''/''
says/VBZ
Christopher/NNP
Cedergren/NNP
,/,
auto-market/NN
analyst/NN
with/IN
J.D./NNP
Power/NNP
&/CC
Co./NNP
of/IN
Agoura/NNP
Hills/NNP
,/,
Calif/NNP
./.
Such/JJ
preferences/NNS
persist/VBP
even/RB
though/IN
many/JJ
Americans/NNPS
believe/VBP
differences/NNS
between/IN
imported/JJ
and/CC
domestic/JJ
cars/NNS
are/VBP
diminishing/VBG
./.
Only/RB
58/CD
%/NN
of/IN
Americans/NNPS
now/RB
believe/VBP
that/IN
foreign/JJ
cars/NNS
get/VBP
better/JJR
gas/NN
mileage/NN
than/IN
domestic/JJ
models/NNS
,/,
the/DT
Journal/NNP
survey/NN
found/VBD
,/,
down/RB
from/IN
68/CD
%/NN
in/IN
1987/CD
./.
Some/DT
46/CD
%/NN
give/VBP
foreign/JJ
cars/NNS
higher/JJR
quality/NN
ratings/NNS
,/,
down/RB
from/IN
50/CD
%/NN
two/CD
years/NNS
ago/RB
./.
On/IN
the/DT
other/JJ
hand/NN
,/,
only/RB
42/CD
%/NN
say/VBP
foreign/JJ
cars/NNS
are/VBP
less/RBR
comfortable/JJ
than/IN
U.S./NNP
models/NNS
,/,
down/RB
from/IN
55/CD
%/NN
in/IN
1987/CD
./.
People/NNS
in/IN
the/DT
automotive/JJ
business/NN
disagree/VBP
over/IN
how/WRB
susceptible/JJ
younger/JJR
Americans/NNPS
are/VBP
to/TO
brand/NN
switching/NN
./.
``/``
Once/RB
buying/NN
habits/NNS
are/VBP
formed/VBN
,/,
they/PRP
're/VBP
very/RB
hard/JJ
to/TO
break/VB
,/,
''/''
declares/VBZ
Thomas/NNP
Mignanelli/NNP
,/,
executive/JJ
vice/NN
president/NN
for/IN
Nissan/NNP
's/POS
U.S./NNP
sales/NNS
operations/NNS
./.
But/CC
out/RB
on/IN
Cobb/NNP
Parkway/NNP
,/,
Ted/NNP
Negas/NNP
sees/VBZ
it/PRP
differently/RB
./.
``/``
The/DT
competition/NN
is/VBZ
so/RB
intense/JJ
that/IN
an/DT
owner/NN
's/POS
loyalty/NN
to/TO
a/DT
dealership/NN
or/CC
a/DT
car/NN
is/VBZ
virtually/RB
nonexistent/JJ
,/,
''/''
says/VBZ
Mr./NNP
Negas/NNP
,/,
vice/NN
president/NN
of/IN
Ed/NNP
Voyles/NNP
Oldsmobile/NNP
,/,
one/CD
of/IN
the/DT
first/JJ
dealerships/NNS
to/TO
locate/VB
on/IN
the/DT
strip/NN
./.
Thus/RB
the/DT
very/JJ
fickleness/NN
of/IN
baby/NN
boomers/NNS
may/MD
make/VB
it/PRP
possible/JJ
to/TO
win/VB
them/PRP
back/RP
,/,
just/RB
as/IN
it/PRP
was/VBD
possible/JJ
to/TO
lose/VB
them/PRP
./.
The/DT
battle/NN
for/IN
customer/NN
loyalty/NN
is/VBZ
evident/JJ
along/IN
the/DT
Cobb/NNP
Parkway/NNP
strip/NN
./.
Ed/NNP
Voyles/NNP
Olds/NNP
recently/RB
established/VBD
a/DT
special/JJ
section/NN
in/IN
the/DT
service/NN
department/NN
for/IN
owners/NNS
whose/WP$
cars/NNS
are/VBP
less/JJR
than/IN
a/DT
year/NN
old/JJ
,/,
so/IN
they/PRP
get/VBP
quicker/JJR
service/NN
./.
Just/RB
down/IN
the/DT
street/NN
,/,
Chris/NNP
Volvo/NNP
invites/VBZ
serious/JJ
shoppers/NNS
to/TO
test-drive/VB
a/DT
new/JJ
Volvo/NNP
to/TO
any/DT
other/JJ
dealership/NN
along/IN
the/DT
strip/NN
,/,
and/CC
compare/VB
the/DT
cars/NNS
side-by-side/RB
./.
Manufacturers/NNS
,/,
too/RB
,/,
are/VBP
stretching/VBG
further/RBR
to/TO
lure/VB
buyers/NNS
./.
GM/NNP
's/POS
Cadillac/NNP
division/NN
,/,
ignoring/VBG
Detroit/NNP
's/POS
long-held/JJ
maxim/NN
that/DT
safety/NN
does/VBZ
n't/RB
sell/VB
,/,
is/VBZ
airing/VBG
television/NN
commercials/NNS
touting/VBG
its/PRP$
cars/NNS
'/POS
safety/NN
features/NNS
./.
Cadillac/NNP
may/MD
be/VB
on/IN
to/TO
something/NN
./.
Some/RB
60/CD
%/NN
of/IN
the/DT
survey/NN
respondents/NNS
said/VBD
they/PRP
would/MD
buy/VB
anti-lock/JJ
brakes/NNS
even/RB
if/IN
they/PRP
carry/VBP
a/DT
medium/JJ
or/CC
high/JJ
price/NN
tag/NN
./.
More/JJR
than/IN
50/CD
%/NN
felt/VBD
the/DT
same/JJ
way/NN
about/IN
air/NN
bags/NNS
./.
Both/DT
features/NNS
appealed/VBD
most/RBS
to/TO
buyers/NNS
under/IN
45/CD
./.
In/IN
contrast/NN
,/,
dashboard/NN
computers/NNS
,/,
power/NN
seats/NNS
and/CC
turbo-charged/JJ
engines/NNS
had/VBD
little/JJ
appeal/NN
./.
But/CC
even/RB
a/DT
little/JJ
appeal/NN
has/VBZ
a/DT
lot/NN
of/IN
attraction/NN
these/DT
days/NNS
./.
GM/NNP
's/POS
Pontiac/NNP
division/NN
is/VBZ
offering/VBG
a/DT
turbo-charged/JJ
V-6/NNP
engine/NN
on/IN
its/PRP$
Grand/NNP
Prix/NNP
model/NN
,/,
even/RB
though/IN
it/PRP
expects/VBZ
to/TO
sell/VB
only/RB
about/RB
4,000/CD
cars/NNS
equipped/VBN
with/IN
that/DT
option/NN
./.
The/DT
reason/NN
:/:
Items/NNS
with/IN
narrow/JJ
appeal/NN
can/MD
be/VB
important/JJ
in/IN
a/DT
market/NN
as/RB
fragmented/JJ
as/IN
today/NN
's/POS
./.
Americans/NNPS
spent/VBD
more/JJR
than/IN
$/$
190/CD
billion/CD
on/IN
new/JJ
cars/NNS
and/CC
trucks/VBZ
last/JJ
year/NN
,/,
and/CC
just/RB
1/CD
%/NN
of/IN
that/DT
market/NN
exceeded/VBD
Polaroid/NNP
Co./NNP
's/POS
sales/NNS
of/IN
$/$
1.86/CD
billion/CD
./.
``/``
Even/RB
if/IN
it/PRP
's/VBZ
only/RB
1/CD
%/NN
,/,
''/''
says/VBZ
GM/NNP
's/POS
Mr./NNP
Barabba/NNP
,/,
``/``
would/MD
you/PRP
throw/VB
away/RP
sales/NNS
the/DT
size/NN
of/IN
Polaroid/NNP
?/.
''/''
All/DT
buyers/NNS
47/CD
%/NN
)/)
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
Co./NNP
said/VBD
it/PRP
will/MD
lay/VB
off/RP
75/CD
to/TO
85/CD
technicians/NNS
here/RB
,/,
effective/JJ
Nov./NNP
1/CD
./.
The/DT
workers/NNS
install/VBP
,/,
maintain/VBP
and/CC
repair/VBP
its/PRP$
private/JJ
branch/NN
exchanges/NNS
,/,
which/WDT
are/VBP
large/JJ
intracompany/JJ
telephone/NN
networks/NNS
./.
It/PRP
's/VBZ
a/DT
California/NNP
crime/NN
saga/NN
worthy/JJ
of/IN
an/DT
Erle/NNP
Stanley/NNP
Gardner/NNP
title/NN
:/:
The/DT
Case/NNP
of/IN
the/DT
Purloined/NNP
Palm/NNP
Trees/NNP
./.
Edward/NNP
Carlson/NNP
awoke/VBD
one/CD
morning/NN
last/JJ
month/NN
to/TO
find/VB
eight/CD
holes/NNS
in/IN
his/PRP$
front/JJ
yard/NN
where/WRB
his/PRP$
prized/VBN
miniature/JJ
palms/NNS
,/,
called/VBN
cycads/NNS
,/,
once/RB
stood/VBD
./.
Days/NNS
later/RB
,/,
the/DT
thieves/NNS
returned/VBD
and/CC
dug/VBD
out/IN
more/RBR
,/,
this/DT
time/NN
adding/VBG
insult/NN
to/TO
injury/NN
./.
``/``
The/DT
second/JJ
time/NN
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
they/PRP
left/VBD
the/DT
shovel/NN
./.
''/''
No/DT
garden-variety/NN
crime/NN
,/,
palm-tree/NN
rustling/NN
is/VBZ
sprouting/VBG
up/IN
all/DT
over/IN
Southern/NNP
California/NNP
,/,
bringing/VBG
big/JJ
bucks/NNS
to/TO
crooks/NNS
who/WP
know/VB
their/PRP$
botany/NN
./.
Cycads/NNS
,/,
the/DT
most/RBS
popular/JJ
of/IN
which/WDT
is/VBZ
the/DT
Sago/NNP
Palm/NNP
,/,
are/VBP
doll-sized/JJ
versions/NNS
of/IN
California/NNP
's/POS
famous/JJ
long-necked/JJ
palms/NNS
,/,
with/IN
stubby/JJ
trunks/NNS
and/CC
fern-like/JJ
fronds/NNS
./.
Because/IN
the/DT
Sago/NNP
is/VBZ
relatively/RB
rare/JJ
and/CC
grows/VBZ
only/RB
a/DT
couple/NN
of/IN
inches/NNS
a/DT
year/NN
,/,
it/PRP
's/VBZ
a/DT
pricey/JJ
lawn/NN
decoration/NN
:/:
A/DT
two-foot/JJ
tall/JJ
Sago/NNP
can/MD
retail/VB
for/IN
$/$
1,000/CD
,/,
and/CC
taller/JJR
ones/NNS
often/RB
fetch/VB
$/$
3,000/CD
or/CC
more/JJR
./.
``/``
Evidently/RB
,/,
somebody/NN
has/VBZ
realized/VBN
it/PRP
's/POS
easy/JJ
money/NN
to/TO
steal/VB
these/DT
things/NNS
,/,
''/''
says/VBZ
Loran/NNP
Whitelock/NNP
,/,
a/DT
research/NN
associate/NN
specializing/VBG
in/IN
cycads/NNS
at/IN
the/DT
Los/NNP
Angeles/NNP
State/NNP
and/CC
County/NNP
Arboretum/NNP
./.
Just/RB
last/JJ
week/NN
,/,
would-be/JJ
thieves/NNS
damaged/VBD
three/CD
Sagos/NNS
at/IN
Mr./NNP
Whitelock/NNP
's/POS
home/NN
in/IN
the/DT
Eagle/NNP
Rock/NNP
section/NN
before/IN
something/NN
frightened/VBD
them/PRP
off/IN
,/,
foiled/JJ
./.
``/``
It/PRP
's/VBZ
hard/JJ
to/TO
think/VB
someone/NN
is/VBZ
raping/VBG
your/PRP$
garden/NN
,/,
''/''
he/PRP
says/VBZ
./.
Police/NNS
suspect/VB
that/IN
the/DT
criminals/NNS
,/,
who/WP
dig/VB
up/IN
the/DT
plants/NNS
in/IN
the/DT
dead/NN
of/IN
night/NN
,/,
are/VBP
selling/VBG
them/PRP
to/TO
nurseries/NNS
or/CC
landscapers/NNS
./.
The/DT
Sago/NNP
has/VBZ
become/VBN
a/DT
popular/JJ
accent/NN
in/IN
tony/JJ
new/JJ
housing/NN
tracts/NNS
,/,
apparently/RB
giving/VBG
the/DT
rustlers/NNS
a/DT
ready/JJ
market/NN
for/IN
their/PRP$
filched/VBN
fronds/NNS
./.
Thieves/NNS
are/VBP
going/VBG
to/TO
find/VB
``/``
anybody/NN
who/WP
has/VBZ
enough/RB
bucks/VBZ
to/TO
plant/VB
these/DT
things/NNS
in/IN
their/PRP$
front/NN
yard/NN
,/,
''/''
says/VBZ
William/NNP
Morrissey/NNP
,/,
an/DT
investigator/NN
with/IN
the/DT
police/NN
department/NN
in/IN
Garden/NNP
Grove/NNP
,/,
Calif./NNP
,/,
where/WRB
five/CD
such/JJ
thefts/NNS
have/VB
been/VBN
reported/VBN
in/IN
the/DT
past/JJ
several/JJ
weeks/NNS
./.
The/DT
department/NN
is/VBZ
advising/VBG
residents/NNS
to/TO
plant/NN
Sagos/NNS
,/,
if/IN
they/PRP
must/MD
,/,
in/IN
the/DT
back/JJ
yard/NN
and/CC
telling/VBG
nurseries/NNS
to/TO
be/VB
on/IN
the/DT
lookout/NN
for/IN
anyone/NN
trying/VBG
to/TO
palm/VB
one/NN
off/IN
./.
But/CC
for/IN
those/DT
Californians/NNS
who/WP
want/VB
exotic/JJ
gardens/NNS
out/IN
front/NN
where/WRB
neighbors/NNS
can/MD
appreciate/VB
them/PRP
,/,
there/EX
's/VBZ
always/RB
Harold/NNP
Smith/NNP
's/POS
approach/NN
./.
After/IN
three/CD
Sagos/NNS
were/VBD
stolen/VBN
from/IN
his/PRP$
home/NN
in/IN
Garden/NNP
Grove/NNP
,/,
``/``
I/PRP
put/VB
a/DT
big/JJ
iron/NN
stake/NN
in/IN
the/DT
ground/NN
and/CC
tied/VBD
the/DT
tree/NN
to/TO
the/DT
stake/NN
with/IN
a/DT
chain/NN
,/,
''/''
he/PRP
says/VBZ
proudly/RB
./.
``/``
And/CC
you/PRP
ca/MD
n't/RB
cut/VB
this/DT
chain/NN
with/IN
bolt/NN
cutters/NNS
./.
''/''
Program/NN
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
in/IN
September/NNP
rose/VBD
to/TO
its/PRP$
highest/JJS
recorded/VBN
level/NN
as/IN
a/DT
percentage/NN
of/IN
total/JJ
monthly/JJ
trading/NN
volume/NN
./.
September/NNP
program/NN
trading/NN
amounted/VBD
to/TO
13.8/CD
%/NN
of/IN
average/JJ
daily/JJ
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
volume/NN
of/IN
151.8/CD
million/CD
shares/NNS
,/,
the/DT
largest/JJS
percentage/NN
since/IN
the/DT
exchange/NN
began/VBD
making/VBG
such/JJ
figures/NNS
public/JJ
in/IN
July/NNP
1988/CD
./.
A/DT
daily/JJ
average/NN
of/IN
20.9/CD
million/CD
shares/NNS
traded/VBN
in/IN
program/NN
strategies/NNS
in/IN
September/NNP
,/,
the/DT
second-highest/JJ
level/NN
ever/RB
./.
The/DT
highest/JJS
level/NN
was/VBD
in/IN
June/NNP
1989/CD
,/,
when/WRB
a/DT
daily/JJ
average/NN
of/IN
22.1/CD
million/CD
shares/NNS
traded/VBD
in/IN
program/NN
strategies/NNS
./.
Average/JJ
daily/JJ
trading/NN
volume/NN
in/IN
June/NNP
of/IN
180.3/CD
million/CD
shares/NNS
was/VBD
considerably/RB
higher/JJR
than/IN
in/IN
September/NNP
./.
Program/NN
trading/NN
amounted/VBD
to/TO
12.3/CD
%/NN
of/IN
average/JJ
daily/JJ
volume/NN
in/IN
June/NNP
./.
The/DT
Big/NNP
Board/NNP
says/VBZ
program/NN
trading/NN
describes/VBZ
a/DT
variety/NN
of/IN
strategies/NNS
involving/VBG
the/DT
purchase/NN
or/CC
sale/NN
of/IN
a/DT
basket/NN
of/IN
15/CD
or/CC
more/JJR
stocks/NNS
./.
The/DT
most/RBS
controversial/JJ
of/IN
these/DT
is/VBZ
stock-index/NN
arbitrage/NN
,/,
in/IN
which/WDT
traders/NNS
buy/VBP
or/CC
sell/VBP
baskets/NNS
of/IN
stocks/NNS
and/CC
offset/VBP
the/DT
position/NN
with/IN
an/DT
opposite/JJ
trade/NN
in/IN
stock-index/JJ
futures/NNS
to/TO
lock/VB
in/RP
profits/NNS
./.
It/PRP
's/VBZ
the/DT
most/RBS
controversial/JJ
form/NN
of/IN
program/NN
trading/NN
because/IN
it/PRP
can/MD
create/VB
abrupt/JJ
price/NN
swings/NNS
in/IN
the/DT
stock/NN
market/NN
./.
Salomon/NNP
Brothers/NNP
Inc./NNP
was/VBD
the/DT
top/JJ
program/NN
trader/NN
in/IN
September/NNP
,/,
but/CC
most/JJS
of/IN
the/DT
firm/NN
's/POS
activity/NN
involved/VBD
portfolio/NN
trading/NN
strategies/NNS
other/JJ
than/IN
stock-index/NN
arbitrage/NN
./.
Overall/RB
,/,
Salomon/NNP
reported/VBD
program/NN
trading/NN
volume/NN
of/IN
75.2/CD
million/CD
shares/NNS
./.
The/DT
top/JJ
stock-index/NN
arbitrage/NN
firm/NN
last/JJ
month/NN
was/VBD
Morgan/NNP
Stanley/NNP
&/CC
Co/NNP
./.
Of/IN
Morgan/NNP
Stanley/NNP
's/POS
66.8/CD
million/CD
shares/NNS
in/IN
program/NN
trades/NNS
for/IN
the/DT
month/NN
,/,
53.1/CD
million/CD
were/VBD
in/IN
stock-index/NN
arbitrage/NN
trades/NNS
./.
Behind/IN
second-place/JJ
Morgan/NNP
Stanley/NNP
were/VBD
Kidder/NNP
,/,
Peabody/NNP
&/CC
Co./NNP
,/,
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
and/CC
CS/NNP
First/NNP
Boston/NNP
Inc./NNP
's/POS
First/NNP
Boston/NNP
Corp./NNP
unit/NN
./.
A/DT
group/NN
of/IN
shareholders/NNS
filed/VBD
suit/NN
against/IN
Imperial/NNP
Corp./NNP
of/IN
America/NNP
,/,
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
,/,
First/NNP
Executive/NNP
Corp./NNP
and/CC
others/NNS
,/,
charging/VBG
them/PRP
with/IN
artificially/RB
inflating/VBG
Imperial/NNP
's/POS
stock/NN
price/NN
to/TO
protect/VB
certain/JJ
major/JJ
investors/NNS
./.
The/DT
complaint/NN
,/,
filed/VBN
in/IN
federal/JJ
district/NN
court/NN
,/,
accuses/VBZ
Imperial/NNP
and/CC
other/JJ
defendants/NNS
of/IN
issuing/VBG
false/JJ
and/CC
misleading/JJ
financial/JJ
data/NNS
./.
It/PRP
also/RB
charges/VBZ
that/IN
Imperial/NNP
,/,
the/DT
holding/NN
company/NN
for/IN
Imperial/NNP
Savings/NNP
&/CC
Loan/NNP
,/,
experienced/VBD
major/JJ
losses/NNS
and/CC
writedowns/NNS
because/IN
of/IN
improper/JJ
assessment/NN
of/IN
the/DT
risks/NNS
of/IN
junk-bond/NN
investments/NNS
and/CC
wholesale/JJ
consumer/NN
loan/NN
packages/NNS
./.
The/DT
suit/NN
seeks/VBZ
unspecified/JJ
damages/NNS
./.
Imperial/NNP
is/VBZ
in/IN
the/DT
midst/NN
of/IN
reducing/VBG
its/PRP$
junk-bond/NN
holdings/NNS
and/CC
getting/VBG
out/IN
of/IN
the/DT
investment/NN
banking/NN
business/NN
in/IN
order/NN
to/TO
return/VB
to/TO
traditional/JJ
thrift/NN
activities/NNS
./.
The/DT
derivative/JJ
suit/NN
is/VBZ
similar/JJ
to/TO
a/DT
class-action/JJ
complaint/NN
filed/VBN
earlier/RBR
this/DT
year/NN
./.
Imperial/NNP
said/VBD
in/IN
a/DT
statement/NN
it/PRP
expects/VBZ
other/JJ
complaints/NNS
to/TO
be/VB
filed/VBN
in/IN
the/DT
wake/NN
of/IN
the/DT
original/JJ
suit/NN
and/CC
a/DT
recent/JJ
article/NN
in/IN
Barron/NNP
's/POS
magazine/NN
that/WDT
focused/VBD
on/IN
the/DT
company/NN
's/POS
problems/NNS
./.
Although/IN
an/DT
Imperial/JJ
spokesman/NN
said/VBD
the/DT
company/NN
had/VBD
n't/RB
yet/RB
been/VBN
served/VBN
with/IN
the/DT
derivative/NN
suit/NN
,/,
he/PRP
reiterated/VBD
the/DT
company/NN
's/POS
statement/NN
that/IN
it/PRP
would/MD
vigorously/RB
defend/VB
itself/PRP
against/IN
the/DT
class-action/JJ
suit/NN
./.
Spokesmen/NNS
at/IN
Drexel/NNP
and/CC
First/NNP
Executive/NNP
said/VBD
the/DT
companies/NNS
had/VBD
n't/RB
yet/RB
been/VBN
served/VBN
with/IN
the/DT
suit/NN
./.
In/IN
a/DT
separate/JJ
complaint/NN
also/RB
filed/VBN
in/IN
federal/JJ
court/NN
here/RB
,/,
shareholder/NN
Max/NNP
Grill/NNP
of/IN
New/NNP
York/NNP
charged/VBD
Imperial/NNP
,/,
its/PRP$
top/JJ
executives/NNS
and/CC
directors/NNS
with/IN
breach/NN
of/IN
fiduciary/JJ
duty/NN
and/CC
squandering/VBG
the/DT
company/NN
's/POS
assets/NNS
./.
Imperial/NNP
said/VBD
it/PRP
had/VBD
n't/RB
been/VBN
served/VBN
with/IN
this/DT
suit/NN
either/RB
./.
Companies/NNS
listed/VBN
below/RB
reported/VBD
quarterly/JJ
profit/NN
substantially/RB
different/JJ
from/IN
the/DT
average/NN
of/IN
analysts/NNS
'/POS
estimates/NNS
./.
The/DT
companies/NNS
are/VBP
followed/VBN
by/IN
at/IN
least/JJS
three/CD
analysts/NNS
,/,
and/CC
had/VBD
a/DT
minimum/JJ
five-cent/JJ
change/NN
in/IN
actual/JJ
earnings/NNS
per/IN
share/NN
./.
Estimated/JJ
and/CC
actual/JJ
results/NNS
involving/VBG
losses/NNS
are/VBP
omitted/VBN
./.
The/DT
percent/NN
difference/NN
compares/VBZ
actual/JJ
profit/NN
with/IN
the/DT
30-day/JJ
estimate/NN
where/WRB
at/IN
least/JJS
three/CD
analysts/NNS
have/VBP
issues/NNS
forecasts/NNS
in/IN
the/DT
past/JJ
30/CD
days/NNS
./.
Otherwise/RB
,/,
actual/JJ
profit/NN
is/VBZ
compared/VBN
with/IN
the/DT
300-day/JJ
estimate/NN
./.
Source/NN
:/:
Zacks/NNP
Investment/NNP
Research/NNP
Rhone-Poulenc/NNP
S.A./NNP
,/,
Paris/NNP
,/,
said/VBD
it/PRP
completed/VBD
the/DT
purchase/NN
of/IN
the/DT
specialty/NN
chemicals/NNS
operation/NN
of/IN
RTZ/NNP
Corp./NNP
,/,
a/DT
British/JJ
mining/NN
and/CC
industrial/JJ
group/NN
./.
Rhone-Poulenc/NNP
,/,
a/DT
chemical/NN
and/CC
pharmaceutical/JJ
company/NN
,/,
said/VBD
RTZ/NNP
Chemicals/NNP
has/VBZ
annual/JJ
sales/NNS
of/IN
about/RB
$/$
900/CD
million/CD
./.
It/PRP
did/VBD
n't/RB
release/VB
terms/NNS
of/IN
the/DT
transaction/NN
./.
Consumer/NN
spending/NN
in/IN
Britain/NNP
rose/VBD
0.1/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
from/IN
the/DT
second/JJ
quarter/NN
and/CC
was/VBD
up/RB
3.8/CD
%/NN
from/IN
a/DT
year/NN
ago/RB
,/,
the/DT
Central/NNP
Statistical/NNP
Office/NNP
estimated/VBD
Friday/NNP
./.
A/DT
group/NN
including/VBG
Gene/NNP
E./NNP
Phillips/NNP
,/,
former/JJ
chairman/NN
of/IN
Southmark/NNP
Corp./NNP
,/,
and/CC
William/NNP
S./NNP
Friedman/NNP
,/,
former/JJ
vice/NN
chairman/NN
of/IN
Southmark/NNP
,/,
lowered/VBD
its/PRP$
stake/NN
in/IN
the/DT
Dallas/NNP
real/JJ
estate/NN
concern/NN
to/TO
7.7/CD
%/NN
,/,
according/VBG
to/TO
a/DT
filing/NN
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
./.
The/DT
group/NN
said/VBD
it/PRP
sold/VBD
455,410/CD
Southmark/NNP
common/JJ
shares/NNS
from/IN
Sept./NNP
5/CD
to/TO
Oct./NNP
5/CD
for/IN
18.75/CD
cents/NNS
to/TO
25/CD
cents/NNS
a/DT
share/NN
./.
The/DT
filing/NN
said/VBD
the/DT
group/NN
continues/VBZ
to/TO
hold/VB
3,481,887/CD
remaining/VBG
shares/NNS
./.
Eastman/NNP
Kodak/NNP
Co./NNP
,/,
seeking/VBG
to/TO
position/VB
itself/PRP
in/IN
the/DT
potentially/RB
huge/JJ
high-definition/JJ
television/NN
market/NN
,/,
unveiled/VBD
a/DT
converter/NN
that/WDT
can/MD
transform/VB
conventional/JJ
motion-picture/NN
film/NN
into/IN
high-definition/JJ
video/NN
./.
The/DT
move/NN
also/RB
helps/VBZ
the/DT
Rochester/NNP
,/,
N.Y./NNP
,/,
photographic/JJ
giant/NN
ensure/VB
that/IN
its/PRP$
motion-picture/NN
film/NN
business/NN
--/:
for/IN
which/WDT
it/PRP
holds/VBZ
a/DT
virtual/JJ
monopoly/NN
,/,
supplying/VBG
every/DT
Hollywood/NNP
movie/NN
company/NN
--/:
is/VBZ
n't/RB
made/VBN
obsolete/JJ
by/IN
the/DT
upstart/JJ
HDTV/NNP
business/NN
./.
While/IN
the/DT
prototype/NN
converter/NN
is/VBZ
costly/JJ
,/,
it/PRP
's/VBZ
being/VBG
lauded/VBN
by/IN
the/DT
infant/JJ
HDTV/NN
industry/NN
as/IN
a/DT
way/NN
of/IN
increasing/VBG
the/DT
number/NN
of/IN
high-quality/JJ
shows/NNS
that/WDT
can/MD
be/VB
seen/VBN
on/IN
the/DT
new/JJ
medium/NN
./.
``/``
The/DT
industry/NN
has/VBZ
been/VBN
waiting/VBG
with/IN
bated/JJ
breath/NN
for/IN
the/DT
machines/NNS
to/TO
come/VB
along/RB
,/,
''/''
says/VBZ
David/NNP
Niles/NNP
,/,
president/NN
of/IN
Eleven/CD
Twenty/CD
Five/CD
Productions/NNP
Inc./NNP
,/,
a/DT
New/NNP
York/NNP
pioneer/NN
in/IN
high-definition/JJ
programming/NN
./.
He/PRP
notes/VBZ
that/IN
industry/NN
executives/NNS
have/VBP
until/IN
now/RB
worried/VBN
that/IN
they/PRP
would/MD
face/VB
a/DT
severe/JJ
shortage/NN
of/IN
programs/NNS
once/IN
consumers/NNS
begin/VBP
replacing/VBG
their/PRP$
TV/NN
sets/NNS
with/IN
HDTVs/NNS
./.
Japanese/JJ
electronic/JJ
giants/NNS
,/,
such/JJ
as/IN
Sony/NNP
Corp./NNP
and/CC
Hitachi/NNP
Ltd./NNP
,/,
have/VBP
focused/VBN
almost/RB
entirely/RB
on/IN
HDTV/NNP
hardware/NN
,/,
and/CC
virtually/RB
ignored/VBN
software/NN
or/CC
programs/NNS
shot/VBN
in/IN
high-definition/NN
./.
And/CC
only/RB
a/DT
handful/NN
of/IN
small/JJ
U.S./NNP
companies/NNS
are/VBP
engaged/VBN
in/IN
high-definition/JJ
software/NN
development/NN
./.
It/PRP
's/VBZ
estimated/VBN
that/RB
just/RB
about/RB
250/CD
hours/NNS
of/IN
HD/NNP
programming/NN
is/VBZ
currently/RB
available/JJ
for/IN
airing/VBG
./.
Kodak/NNP
says/VBZ
its/PRP$
new/JJ
CCD/NNP
HDTV/NN
converter/NN
will/MD
help/VB
alleviate/VB
the/DT
problem/NN
by/IN
allowing/VBG
programmers/NNS
and/CC
broadcasters/NNS
to/TO
convert/VB
movies/NNS
and/CC
television/NN
programs/NNS
shot/VBN
in/IN
35mm/CD
motion-picture/NN
film/NN
into/IN
high-definition/JJ
video/NN
./.
Consumers/NNS
will/MD
be/VB
able/JJ
to/TO
switch/VB
on/RP
their/PRP$
HDTV/NN
sets/NNS
and/CC
get/VB
all/PDT
the/DT
viewing/NN
benefits/NNS
the/DT
high-tech/JJ
medium/NN
offers/VBZ
./.
Otherwise/RB
,/,
they/PRP
'd/MD
be/VB
watching/VBG
programs/NNS
that/WDT
are/VBP
no/RB
different/JJ
in/IN
quality/NN
from/IN
what/WP
they/PRP
currently/RB
view/VBP
on/IN
color/JJ
TVs/NNS
./.
It/PRP
would/MD
be/VB
like/IN
``/``
watching/VBG
a/DT
black/JJ
and/CC
white/JJ
movie/NN
on/IN
a/DT
color/JJ
TV/NN
set/NN
,/,
''/''
says/VBZ
Malcolm/NNP
G./NNP
Saull/NNP
,/,
chairman/NN
of/IN
the/DT
film/NN
and/CC
video/NN
department/NN
at/IN
the/DT
Rochester/NNP
Institute/NNP
of/IN
Technology/NNP
./.
The/DT
new/JJ
converters/NNS
are/VBP
``/``
a/DT
critical/JJ
link/NN
between/IN
film/NN
and/CC
the/DT
television/NN
domain/NN
,/,
''/''
says/VBZ
Joerg/NNP
D./NNP
Agin/NNP
,/,
vice/NN
president/NN
and/CC
general/JJ
manager/NN
of/IN
Kodak/NNP
's/POS
Motion/NNP
Picture/NNP
and/CC
Audiovisual/NNP
Products/NNP
division/NN
./.
Kodak/NNP
wo/MD
n't/RB
disclose/VB
the/DT
cost/NN
or/CC
when/WRB
its/PRP$
converter/NN
will/MD
be/VB
on/IN
the/DT
market/NN
,/,
but/CC
it/PRP
's/VBZ
estimated/VBN
the/DT
machine/NN
may/MD
be/VB
available/JJ
within/IN
two/CD
years/NNS
./.
A/DT
similar/JJ
machine/NN
already/RB
on/IN
the/DT
market/NN
,/,
made/VBN
by/IN
Rank/NNP
Sintel/NNP
Ltd./NNP
,/,
a/DT
unit/NN
of/IN
Rank/NNP
Organisation/NNP
,/,
costs/VBZ
about/RB
$/$
500,000/CD
./.
And/CC
the/DT
potential/JJ
market/NN
is/VBZ
tremendous/JJ
,/,
industry/NN
experts/NNS
say/VBP
./.
If/IN
HDTV/NN
takes/VBZ
off/RP
in/IN
the/DT
U.S./NNP
,/,
there/EX
will/MD
be/VB
demand/NN
for/IN
some/RB
4,000/CD
to/TO
5,000/CD
HDTV/NN
converters/NNS
,/,
known/VBN
in/IN
the/DT
industry/NN
as/IN
telecines/NNS
./.
Demand/NN
will/MD
come/VB
first/RB
from/IN
programming/NN
production/NN
companies/NNS
and/CC
then/RB
from/IN
television/NN
stations/NNS
./.
``/``
The/DT
converter/NN
is/VBZ
head/NN
and/CC
shoulders/NNS
above/IN
anything/NN
else/RB
I/PRP
've/VBP
seen/VBN
,/,
''/''
says/VBZ
Richard/NNP
J./NNP
Stumpf/NNP
,/,
vice/NN
president/NN
-/:
engineering/NN
and/CC
development/NN
at/IN
MCA/NNP
Inc./NNP
's/POS
Universal/NNP
City/NNP
Studios/NNP
./.
And/CC
Mr./NNP
Niles/NNP
,/,
the/DT
program/NN
producer/NN
,/,
contends/VBZ
that/IN
Kodak/NNP
's/POS
move/NN
is/VBZ
``/``
a/DT
sound/NN
marketing/NN
decision/NN
./.
They/PRP
ca/MD
n't/RB
afford/VB
to/TO
stay/VB
out/IN
of/IN
HDTV/NN
./.
''/''
Indeed/RB
,/,
the/DT
stakes/NNS
are/VBP
high/JJ
./.
The/DT
U.S./NNP
electronics/NN
industry/NN
estimates/VBZ
that/IN
the/DT
HDTV/NN
market/NN
will/MD
total/VB
about/RB
$/$
150/CD
billion/CD
over/IN
the/DT
next/JJ
two/CD
decades/NNS
,/,
with/IN
an/DT
additional/JJ
$/$
400/CD
billion/CD
expected/VBN
to/TO
go/VB
for/IN
related/JJ
products/NNS
./.
HDTVs/NNS
break/VBP
down/RP
images/NNS
into/IN
more/JJR
than/IN
1,100/CD
lines/NNS
,/,
compared/VBN
with/IN
525/CD
for/IN
today/NN
's/POS
televisions/NNS
,/,
providing/VBG
considerably/RB
sharper/JJR
detail/NN
./.
And/CC
the/DT
sets/NNS
are/VBP
wider/JJR
,/,
resembling/VBG
the/DT
dimensions/NNS
of/IN
a/DT
movie/NN
screen/NN
./.
But/CC
the/DT
financial/JJ
rewards/NNS
are/VBP
n't/RB
expected/VBN
soon/RB
,/,
nor/CC
are/VBP
they/PRP
guaranteed/VBN
./.
Experts/NNS
estimate/VBP
the/DT
first/JJ
sets/NNS
of/IN
HDTVs/NNS
wo/MD
n't/RB
be/VB
available/JJ
for/IN
another/DT
five/CD
to/TO
10/CD
years/NNS
,/,
and/CC
will/MD
probably/RB
retail/VB
for/IN
more/JJR
than/IN
$/$
3,000/CD
each/DT
in/IN
today/NN
's/POS
dollars/NNS
./.
Some/DT
critics/NNS
say/VBP
they/PRP
wo/MD
n't/RB
be/VB
quickly/RB
embraced/VBN
by/IN
consumers/NNS
because/IN
of/IN
the/DT
high/JJ
price/NN
./.
Nevertheless/RB
,/,
Kodak/NNP
could/MD
n't/RB
risk/VB
letting/VBG
HDTV/NN
turn/VB
its/PRP$
motion-picture/NN
film/NN
business/NN
into/IN
a/DT
dinosaur/NN
./.
``/``
Kodak/NNP
understands/VBZ
HDTV/NNP
is/VBZ
where/WRB
everybody/NN
is/VBZ
going/VBG
,/,
''/''
says/VBZ
RIT/NNP
's/POS
Mr./NNP
Spaull/NNP
./.
Yet/RB
another/DT
political/JJ
scandal/NN
is/VBZ
racking/VBG
Japan/NNP
./.
But/CC
this/DT
time/NN
it/PRP
's/VBZ
hurting/VBG
opposition/NN
as/RB
well/RB
as/IN
ruling-party/NN
members/NNS
./.
And/CC
as/IN
it/PRP
unfolds/VBZ
,/,
it/PRP
's/VBZ
revealing/VBG
some/DT
of/IN
the/DT
more/RBR
tangled/JJ
and/CC
seamier/JJR
aspects/NNS
of/IN
Japanese/JJ
society/NN
./.
Already/RB
,/,
ruling/VBG
Liberal/NNP
Democratic/NNP
Party/NNP
demands/NNS
that/IN
opposition/NN
members/NNS
testify/VB
under/IN
oath/NN
in/IN
parliament/NN
have/VBP
stalled/VBN
one/CD
budget/NN
committee/NN
session/NN
and/CC
forced/VBN
the/DT
committee/NN
to/TO
plan/VB
a/DT
special/JJ
two-day/JJ
investigation/NN
at/IN
the/DT
end/NN
of/IN
the/DT
month/NN
./.
But/CC
the/DT
scandal/NN
itself/PRP
is/VBZ
so/RB
convoluted/JJ
that/IN
ruling-party/NN
members/NNS
are/VBP
divided/VBN
between/IN
those/DT
who/WP
want/VBP
to/TO
pursue/VB
the/DT
matter/NN
in/IN
hope/NN
of/IN
undermining/VBG
the/DT
opposition/NN
and/CC
those/DT
who/WP
favor/VBP
leaving/VBG
well/RB
enough/RB
alone/RB
./.
``/``
The/DT
opposition/NN
can/MD
be/VB
the/DT
most/RBS
hurt/VBN
because/IN
everyone/NN
already/RB
figures/VBZ
the/DT
LDP/NNP
is/VBZ
that/DT
kind/NN
of/IN
beast/NN
,/,
''/''
says/VBZ
Shigezo/NNP
Hayasaka/NNP
,/,
former/JJ
aide/NN
to/TO
LDP/NNP
kingmaker/NN
Kakuei/NNP
Tanaka/NNP
and/CC
now/RB
an/DT
independent/JJ
analyst/NN
./.
But/CC
,/,
he/PRP
adds/VBZ
,/,
``/``
We/PRP
ca/MD
n't/RB
tell/VB
where/WRB
it/PRP
will/MD
go/VB
at/IN
all/DT
because/IN
we/PRP
're/VBP
still/RB
in/IN
the/DT
middle/NN
of/IN
it/PRP
./.
''/''
This/DT
time/NN
,/,
the/DT
scandal/NN
centers/VBZ
on/IN
donations/NNS
made/VBN
by/IN
the/DT
not-quite-mainstream/JJ
pachinko/NN
parlor/NN
industry/NN
./.
Pachinko/NN
,/,
a/DT
kind/NN
of/IN
pinball/NN
,/,
is/VBZ
Japan/NNP
's/POS
favorite/JJ
form/NN
of/IN
legal/JJ
gambling/NN
./.
The/DT
donations/NNS
so/RB
far/RB
appear/VBP
to/TO
be/VB
small/JJ
,/,
especially/RB
compared/VBN
with/IN
the/DT
huge/JJ
sums/NNS
that/WDT
changed/VBD
hands/NNS
in/IN
the/DT
Recruit/NNP
Co/NNP
./.
influence-peddling/NN
scandal/NN
that/WDT
plagued/VBD
the/DT
ruling/VBG
party/NN
last/JJ
year/NN
./.
But/CC
the/DT
implications/NNS
could/MD
be/VB
great/JJ
./.
Pachinko/NN
is/VBZ
slightly/RB
on/IN
the/DT
shady/JJ
side/NN
,/,
often/RB
linked/VBN
to/TO
the/DT
lower/JJR
ranks/NNS
of/IN
Japan/NNP
's/POS
underworld/NN
and/CC
regularly/RB
at/IN
the/DT
top/NN
of/IN
annual/JJ
lists/NNS
of/IN
tax/NN
evaders/NNS
./.
Recently/RB
the/DT
industry/NN
has/VBZ
faced/VBN
the/DT
threat/NN
of/IN
new/JJ
restrictions/NNS
,/,
and/CC
political/JJ
donations/NNS
may/MD
have/VB
been/VBN
made/VBN
with/IN
the/DT
intent/NN
to/TO
bribe/VB
./.
Also/RB
,/,
about/RB
60/CD
%/NN
of/IN
pachinko/NN
parlor/NN
owners/NNS
are/VBP
Korean/JJ
,/,
many/JJ
of/IN
whom/WP
maintain/VBP
close/JJ
ties/NNS
with/IN
North/JJ
or/CC
South/JJ
Korean/JJ
residents/NNS
'/POS
organizations/NNS
,/,
and/CC
donations/NNS
by/IN
such/JJ
foreign/JJ
groups/NNS
are/VBP
illegal/JJ
in/IN
Japan/NNP
./.
To/TO
many/JJ
Japanese/NNPS
,/,
pachinko/NN
is/VBZ
benign/JJ
or/CC
enticingly/RB
unsavory/JJ
./.
Garish/JJ
neon/NN
pachinko/NN
marquees/NNS
blaze/VBP
from/IN
the/DT
main/JJ
streets/NNS
and/CC
narrow/JJ
alleys/NNS
of/IN
cities/NNS
and/CC
towns/NNS
across/IN
the/DT
country/NN
./.
Devotees/NNS
pass/VBP
hours/NNS
,/,
watching/VBG
the/DT
lights/NNS
blink/VB
and/CC
listening/VBG
to/TO
the/DT
metal/NN
balls/NNS
ping/VB
,/,
as/RB
much/RB
to/TO
gamble/VB
as/IN
to/TO
get/VB
a/DT
little/JJ
time/NN
to/TO
be/VB
anonymous/JJ
,/,
alone/RB
with/IN
their/PRP$
thoughts/NNS
./.
At/IN
500/CD
yen/NNS
$/$
3.60/CD
a/DT
handful/NN
of/IN
balls/NNS
,/,
pachinko/NN
is/VBZ
a/DT
common/JJ
pastime/NN
,/,
and/CC
has/VBZ
been/VBN
since/IN
it/PRP
took/VBD
root/NN
as/IN
cheap/JJ
entertainment/NN
in/IN
the/DT
years/NNS
after/IN
World/NNP
War/NNP
II/NNP
./.
But/CC
the/DT
total/NN
of/IN
all/PDT
those/DT
pinging/VBG
balls/NNS
has/VBZ
created/VBN
an/DT
industry/NN
with/IN
a/DT
reported/JJ
annual/JJ
income/NN
of/IN
13/CD
trillion/CD
yen/NN
$/$
92/CD
billion/CD
the/DT
size/NN
of/IN
Japan/NNP
's/POS
vaunted/JJ
automobile/NN
industry/NN
./.
And/CC
because/IN
the/DT
pachinko/NN
industry/NN
is/VBZ
regularly/RB
at/IN
the/DT
top/NN
of/IN
annual/JJ
lists/NNS
for/IN
tax/NN
evasion/NN
,/,
some/DT
observers/NNS
estimate/VBP
the/DT
real/JJ
income/NN
could/MD
be/VB
as/RB
much/JJ
as/IN
20/CD
trillion/CD
yen/NN
./.
If/IN
that/DT
money/NN
were/VBD
being/VBG
taxed/VBN
,/,
it/PRP
could/MD
bring/VB
the/DT
government/NN
a/DT
badly/RB
needed/VBN
several/JJ
trillion/CD
yen/NN
./.
In/IN
1984/CD
,/,
an/DT
attempt/NN
was/VBD
made/VBN
to/TO
crack/VB
down/RP
on/IN
the/DT
industry/NN
with/IN
tougher/JJR
restrictions/NNS
./.
Then/RB
,/,
in/IN
1988/CD
,/,
a/DT
proposal/NN
to/TO
keep/VB
better/JJR
track/NN
of/IN
income/NN
by/IN
selling/VBG
prepaid/JJ
cards/NNS
for/IN
pachinko/NN
was/VBD
fielded/VBN
in/IN
parliament/NN
./.
The/DT
proposal/NN
split/VBD
the/DT
industry/NN
in/IN
two/CD
,/,
along/IN
the/DT
lines/NNS
of/IN
national/JJ
origin/NN
:/:
North/NNP
Koreans/NNPS
oppose/VBP
the/DT
plan/NN
while/IN
South/NNP
Koreans/NNPS
,/,
Japanese/NNPS
and/CC
Taiwanese/NNPS
accept/VBP
it/PRP
or/CC
are/VBP
neutral/JJ
./.
In/IN
August/NNP
,/,
a/DT
conservative/JJ
weekly/JJ
magazine/NN
reported/VBD
that/IN
a/DT
pachinko/NN
industry/NN
organization/NN
donated/VBD
money/NN
to/TO
Japan/NNP
Socialist/NNP
Party/NNP
members/NNS
./.
The/DT
magazine/NN
alleged/VBD
that/IN
in/IN
making/VBG
the/DT
donations/NNS
,/,
the/DT
pachinko/NN
industry/NN
may/MD
have/VB
been/VBN
offering/VBG
bribes/NNS
to/TO
win/VB
support/NN
in/IN
the/DT
battle/NN
against/IN
prepaid/JJ
cards/NNS
,/,
or/CC
it/PRP
may/MD
have/VB
been/VBN
laundering/VBG
money/NN
back/RB
and/CC
forth/RB
between/IN
the/DT
JSP/NNP
and/CC
the/DT
North/JJ
Korean/JJ
residents/NNS
'/POS
organization/NN
,/,
the/DT
Chosen/NNP
Soren/NNP
./.
The/DT
Chosen/NNP
Soren/NNP
and/CC
the/DT
JSP/NNP
immediately/RB
denied/VBD
the/DT
report/NN
./.
And/CC
at/IN
first/JJ
,/,
neither/CC
the/DT
opposition/NN
nor/CC
the/DT
LDP/NNP
wanted/VBD
to/TO
pursue/VB
the/DT
issue/NN
./.
But/CC
the/DT
press/NN
kept/VBD
it/PRP
alive/JJ
;/:
as/RB
with/IN
the/DT
Recruit/NNP
scandal/NN
,/,
lists/NNS
began/VBD
circulating/VBG
with/IN
names/NNS
of/IN
people/NNS
who/WP
had/VBD
received/VBN
money/NN
./.
Within/IN
a/DT
matter/NN
of/IN
weeks/NNS
,/,
less-conservative/JJ
magazines/NNS
reported/VBD
that/IN
members/NNS
of/IN
the/DT
ruling/VBG
LDP/NNP
had/VBD
received/VBN
much/RB
larger/JJR
donations/NNS
from/IN
pachinko/NN
organizations/NNS
./.
So/RB
far/RB
,/,
though/RB
,/,
there/EX
have/VBP
been/VBN
no/DT
allegations/NNS
that/IN
the/DT
contributions/NNS
the/DT
LDP/NNP
members/NNS
received/VBD
amounted/VBD
to/TO
bribes/NNS
./.
Then/RB
the/DT
two/CD
camps/NNS
upped/VBD
the/DT
ante/NN
:/:
Reports/NNS
that/IN
Chosen/NNP
Soren/NNP
had/VBD
donated/VBN
directly/RB
to/TO
JSP/NNP
members/NNS
were/VBD
rapidly/RB
countered/VBN
by/IN
statements/NNS
that/IN
the/DT
South/JJ
Korean/JJ
residents/NNS
'/POS
organization/NN
had/VBD
long/RB
been/VBN
donating/VBG
directly/RB
to/TO
LDP/NNP
members/NNS
./.
The/DT
JSP/NNP
admitted/VBD
Oct./NNP
13/CD
that/IN
its/PRP$
members/NNS
received/VBD
about/RB
eight/CD
million/CD
yen/NN
from/IN
the/DT
pachinko/NN
organization/NN
,/,
and/CC
charged/VBD
LDP/NNP
members/NNS
with/IN
receiving/VBG
125/CD
million/CD
yen/NN
$/$
880,000/CD
other/JJ
opposition/NN
parties/NNS
with/IN
taking/VBG
about/RB
2.5/CD
million/CD
yen/NN
./.
On/IN
Friday/NNP
,/,
the/DT
chief/JJ
cabinet/NN
secretary/NN
announced/VBD
that/IN
eight/CD
cabinet/NN
ministers/NNS
had/VBD
received/VBN
five/CD
million/CD
yen/NN
from/IN
the/DT
industry/NN
,/,
including/VBG
450,000/CD
yen/NN
$/$
3,175/CD
Prime/NNP
Minister/NNP
Toshiki/NNP
Kaifu/NNP
./.
No/DT
one/NN
has/VBZ
alleged/VBN
that/IN
the/DT
donations/NNS
were/VBD
by/IN
themselves/PRP
illegal/JJ
./.
Direct/JJ
donations/NNS
from/IN
either/DT
of/IN
the/DT
residents/NNS
'/POS
organizations/NNS
would/MD
be/VB
illegal/JJ
because/IN
the/DT
groups/NNS
are/VBP
defined/VBN
as/IN
foreign/JJ
,/,
but/CC
both/DT
groups/NNS
deny/VBP
making/VBG
direct/JJ
donations/NNS
./.
They/PRP
say/VBP
it/PRP
s/VBZ
possible/JJ
some/DT
of/IN
their/PRP$
members/NNS
may/MD
be/VB
donating/VBG
privately/RB
./.
The/DT
issue/NN
is/VBZ
further/RB
complicated/VBN
because/IN
although/IN
the/DT
organizations/NNS
represent/VBP
Korean/JJ
residents/NNS
,/,
those/DT
residents/NNS
were/VBD
largely/RB
born/VBN
and/CC
raised/VBN
in/IN
Japan/NNP
and/CC
many/JJ
speak/VBP
only/RB
Japanese/NNP
./.
That/IN
they/PRP
retain/VBP
Korean/JJ
citizenship/NN
and/CC
ties/NNS
is/VBZ
a/DT
reflection/NN
of/IN
history/NN
--/:
their/PRP$
parents/NNS
were/VBD
shipped/VBN
in/RP
as/IN
laborers/NNS
during/IN
the/DT
decades/NNS
when/WRB
Japan/NNP
occupied/VBD
Korea/NNP
before/IN
World/NNP
War/NNP
II/NNP
--/:
and/CC
the/DT
discrimination/NN
that/WDT
still/RB
faces/VBZ
Koreans/NNPS
in/IN
Japanese/JJ
society/NN
./.
Many/JJ
Japanese/NNPS
think/VBP
it/PRP
only/RB
natural/NN
that/IN
the/DT
organizations/NNS
or/CC
their/PRP$
members/NNS
would/MD
donate/VB
to/TO
politicians/NNS
,/,
the/DT
way/NN
many/JJ
Japanese/NNPS
do/VBP
,/,
to/TO
win/VB
favor/NN
or/CC
support/NN
./.
Both/DT
residents/NNS
'/POS
organizations/NNS
admit/VBP
to/TO
receiving/VBG
some/DT
funding/NN
from/IN
abroad/RB
./.
But/CC
LDP/NNP
members/NNS
and/CC
supporters/NNS
of/IN
the/DT
prepaid/JJ
card/NN
idea/NN
tend/VBP
to/TO
speak/VB
in/IN
innuendo/NN
about/IN
the/DT
JSP/NNP
's/POS
alleged/JJ
donations/NNS
,/,
implying/VBG
that/IN
North/JJ
Korean/JJ
money/NN
would/MD
be/VB
more/RBR
suspect/JJ
than/IN
South/JJ
Korean/JJ
because/IN
North/NNP
Korea/NNP
is/VBZ
communist/JJ
and/CC
South/NNP
Korea/NNP
is/VBZ
an/DT
ally/NN
./.
When/WRB
Robert/NNP
McDuffie/NNP
was/VBD
14/CD
,/,
he/PRP
got/VBD
a/DT
chance/NN
to/TO
play/VB
in/IN
the/DT
starting/JJ
lineup/NN
for/IN
his/PRP$
high/JJ
school/NN
basketball/NN
team/NN
in/IN
Macon/NNP
,/,
Ga/NNP
./.
Unfortunately/RB
,/,
his/PRP$
mother/NN
had/VBD
tickets/NNS
for/IN
a/DT
recital/NN
by/IN
Itzhak/NNP
Perlman/NNP
the/DT
same/JJ
night/NN
,/,
and/CC
she/PRP
was/VBD
adamant/JJ
about/IN
his/PRP$
attending/VBG
./.
``/``
I/PRP
threw/VBD
such/PDT
a/DT
fit/NN
,/,
''/''
says/VBZ
Mr./NNP
McDuffie/NNP
,/,
who/WP
had/VBD
begun/VBN
violin/NN
studies/NNS
at/IN
the/DT
age/NN
of/IN
six/CD
./.
``/``
But/CC
once/IN
Perlman/NNP
started/VBD
playing/VBG
,/,
I/PRP
did/VBD
n't/RB
give/VB
a/DT
damn/NN
about/IN
basketball/NN
.../:
./.
Afterwards/RB
,/,
I/PRP
went/VBD
home/NN
and/CC
practiced/VBD
for/IN
three/CD
hours/NNS
./.
''/''
Today/NN
,/,
it/PRP
's/VBZ
obvious/JJ
that/IN
the/DT
brawny/JJ
,/,
six-foot/JJ
,/,
one-inch/JJ
musician/NN
made/VBD
the/DT
right/JJ
choice/NN
./.
At/IN
31/CD
,/,
Mr./NNP
McDuffie/NNP
has/VBZ
a/DT
rich/JJ
,/,
full-bodied/JJ
tone/NN
,/,
an/DT
admirable/JJ
rhythmic/JJ
precision/NN
and/CC
an/DT
increasingly/RB
busy/JJ
schedule/NN
./.
He/PRP
's/VBZ
currently/RB
in/IN
the/DT
midst/NN
of/IN
a/DT
17-city/JJ
U.S./NNP
tour/NN
with/IN
Yehudi/NNP
Menuhin/NNP
and/CC
the/DT
Warsaw/NNP
Sinfonia/NNP
,/,
with/IN
stops/NNS
including/VBG
Charleston/NNP
,/,
S.C/NNP
./.
Oct./NNP
25/CD
Sarasota/NNP
,/,
Fla/NNP
./.
Oct./NNP
28/CD
Tampa/NNP
,/,
Fla/NNP
./.
Oct./NNP
29/CD
Miami/NNP
Oct./NNP
31/CD
Later/RB
this/DT
season/NN
he/PRP
gives/VBZ
a/DT
recital/NN
at/IN
Washington/NNP
's/POS
Kennedy/NNP
Center/NNP
,/,
and/CC
appears/VBZ
as/IN
soloist/NN
with/IN
several/JJ
major/JJ
orchestras/NNS
./.
Yet/CC
Mr./NNP
McDuffie/NNP
's/POS
career/NN
has/VBZ
developed/VBN
at/IN
a/DT
slower/JJR
pace/NN
than/IN
those/DT
of/IN
some/DT
of/IN
his/PRP$
better/RBR
known/VBN
contemporaries/NNS
./.
During/IN
the/DT
late/JJ
1970s/NNS
,/,
he/PRP
was/VBD
part/NN
of/IN
a/DT
musical/JJ
``/``
brat/NN
pack/NN
''/''
--/:
a/DT
group/NN
of/IN
budding/JJ
virtuosos/NNS
who/WP
studied/VBD
at/IN
the/DT
Juilliard/NNP
School/NNP
with/IN
the/DT
noted/JJ
pedagogue/NN
Dorothy/NNP
DeLay/NNP
./.
His/PRP$
violin/NN
classmates/NNS
included/VBD
Shlomo/NNP
Mintz/NNP
,/,
a/DT
protege/NN
of/IN
Isaac/NNP
Stern/NNP
who/WP
performed/VBD
with/IN
major/JJ
orchestras/NNS
while/IN
still/RB
a/DT
student/NN
;/:
Cho-Liang/NNP
Lin/NNP
,/,
who/WP
joined/VBD
the/DT
roster/NN
of/IN
ICM/NNP
Artists/NNP
Inc./NNP
at/IN
the/DT
age/NN
of/IN
18/CD
;/:
and/CC
Nadja/NNP
Salerno-Sonnenberg/NNP
,/,
who/WP
launched/VBD
her/PRP$
career/NN
by/IN
winning/VBG
the/DT
1981/CD
Naumberg/NNP
Competition/NNP
./.
``/``
I/PRP
thought/VBD
I/PRP
was/VBD
over/IN
the/DT
hill/NN
at/IN
22/CD
,/,
''/''
recalls/VBZ
Mr./NNP
McDuffie/NNP
,/,
an/DT
outgoing/JJ
man/NN
with/IN
pale/JJ
blue/JJ
eyes/NNS
and/CC
a/DT
light/JJ
Southern/JJ
drawl/NN
./.
``/``
But/CC
I/PRP
was/VBD
n't/RB
ready/JJ
for/IN
a/DT
career/NN
at/IN
that/DT
time/NN
./.
''/''
Young/JJ
McDuffie/NNP
's/POS
first/JJ
violin/NN
teacher/NN
was/VBD
Henrik/NNP
Schwarzenberger/NNP
,/,
a/DT
Hungarian/JJ
refugee/NN
who/WP
taught/VBD
in/IN
the/DT
Macon/NNP
public/JJ
school/NN
system/NN
./.
``/``
He/PRP
taught/VBD
me/PRP
how/WRB
to/TO
play/VB
like/IN
a/DT
gypsy/NN
,/,
''/''
jokes/VBZ
the/DT
musician/NN
./.
``/``
I/PRP
did/VBD
n't/RB
learn/VB
to/TO
count/VB
until/IN
I/PRP
got/VBD
to/TO
Juilliard/NN
./.
''/''
After/IN
studies/NNS
at/IN
that/DT
conservatory/NN
's/POS
Pre-College/NNP
Division/NNP
with/IN
an/DT
assistant/NN
to/TO
the/DT
legendary/JJ
instructor/NN
Ivan/NNP
Galamian/NNP
,/,
he/PRP
switched/VBD
at/IN
the/DT
college/NN
level/NN
to/TO
Miss/NNP
DeLay/NNP
,/,
Mr./NNP
Galamian/NNP
's/POS
longtime/JJ
assistant/NN
and/CC
,/,
ultimately/RB
,/,
his/PRP$
rival/NN
./.
``/``
I/PRP
think/VBP
I/PRP
had/VBD
to/TO
prove/VB
myself/PRP
to/TO
her/PRP
,/,
''/''
says/VBZ
Mr./NNP
McDuffie/NNP
./.
``/``
But/CC
she/PRP
was/VBD
always/RB
encouraging/JJ
./.
She/PRP
only/RB
put/VBD
her/PRP$
foot/NN
down/RP
twice/RB
,/,
''/''
he/PRP
continues/VBZ
./.
``/``
In/IN
my/PRP$
freshman/NN
year/NN
,/,
my/PRP$
roommate/NN
was/VBD
known/VBN
as/IN
a/DT
party/NN
animal/NN
./.
She/PRP
thought/VBD
I/PRP
was/VBD
n't/RB
getting/VBG
my/PRP$
practicing/NN
done/VBN
./.
''/''
As/IN
the/DT
violinist/NN
tells/VBZ
it/PRP
,/,
his/PRP$
grandmotherly/JJ
looking/VBG
teacher/NN
``/``
put/VBD
her/PRP$
hands/NNS
on/IN
her/PRP$
hips/NNS
,/,
stomped/VBD
her/PRP$
foot/NN
and/CC
said/VBD
,/,
`/``
You/PRP
've/VBP
just/RB
got/VBN
to/TO
get/VB
the/DT
expletive/NN
deleted/VBN
}/)
out/IN
of/IN
there/RB
./.
'/''
''/''
The/DT
second/JJ
incident/NN
took/VBD
place/NN
after/IN
Mr./NNP
McDuffie/NNP
gave/VBD
an/DT
ambitious/JJ
student/NN
recital/NN
and/CC
was/VBD
feeling/VBG
rather/RB
pleased/JJ
with/IN
himself/PRP
./.
Miss/NNP
DeLay/NNP
requested/VBD
that/IN
he/PRP
come/VB
to/TO
her/PRP$
studio/NN
with/IN
a/DT
tape/NN
of/IN
the/DT
recital/NN
./.
``/``
We/PRP
listened/VBD
to/TO
the/DT
Chausson/NNP
`/``
Poeme/NNP
,/,
'/''
''/''
he/PRP
recalls/VBZ
,/,
``/``
and/CC
she/PRP
said/VBD
,/,
`/``
You/PRP
hear/VBP
the/DT
first/JJ
note/NN
,/,
that/DT
B-flat/NN
?/.
That/DT
's/VBZ
the/DT
only/JJ
note/NN
that/WDT
's/VBZ
truly/RB
in/IN
tune/NN
.../:
'/''
./.
''/''
``/``
That/DT
's/VBZ
the/DT
most/RBS
important/JJ
experience/NN
I/PRP
've/VBP
had/VBD
with/IN
any/DT
teacher/NN
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
because/IN
she/PRP
taught/VBD
me/PRP
how/WRB
to/TO
listen/VB
./.
Now/RB
,/,
when/WRB
I/PRP
play/VBP
with/IN
orchestras/NNS
,/,
the/DT
musicians/NNS
often/RB
compliment/VBP
me/PRP
on/IN
my/PRP$
intonation/NN
./.
''/''
It/PRP
was/VBD
also/RB
at/IN
Juilliard/NNP
that/IN
Mr./NNP
McDuffie/NNP
discovered/VBD
his/PRP$
predilection/NN
for/IN
conservative/JJ
,/,
20th-century/JJ
American/JJ
composers/NNS
such/JJ
as/IN
David/NNP
Diamond/NNP
and/CC
Samuel/NNP
Barber/NNP
./.
After/IN
winning/VBG
a/DT
school/NN
competition/NN
with/IN
a/DT
performance/NN
of/IN
the/DT
latter/NN
's/POS
``/``
Violin/NNP
Concerto/NNP
,/,
''/''
Mr./NNP
McDuffie/NNP
was/VBD
invited/VBN
to/TO
play/VB
the/DT
work/NN
for/IN
the/DT
composer/NN
,/,
who/WP
was/VBD
dying/VBG
of/IN
cancer/NN
./.
``/``
Barber/NNP
was/VBD
seated/VBN
by/IN
the/DT
fireplace/NN
looking/VBG
very/RB
pale/JJ
,/,
''/''
recalls/VBZ
the/DT
violinist/NN
,/,
who/WP
performed/VBD
the/DT
work/NN
with/IN
a/DT
piano/NN
accompanist/NN
at/IN
the/DT
composer/NN
's/POS
apartment/NN
./.
``/``
He/PRP
did/VBD
n't/RB
say/VB
much/JJ
,/,
but/CC
what/WP
he/PRP
said/VBD
was/VBD
important/JJ
because/IN
it/PRP
's/VBZ
not/RB
in/IN
the/DT
score/NN
./.
There/EX
's/VBZ
a/DT
beautiful/JJ
,/,
Coplandesque/JJ
motif/NN
--/:
he/PRP
'd/MD
kill/VB
me/PRP
if/IN
he/PRP
heard/VBD
me/PRP
say/VB
that/DT
--/:
throughout/IN
the/DT
first/JJ
movement/NN
.../:
The/DT
only/JJ
time/NN
the/DT
violin/NN
has/VBZ
it/PRP
is/VBZ
right/RB
at/IN
the/DT
end/NN
./.
It/PRP
's/VBZ
written/VBN
`/``
marcato/FW
'/''
in/IN
the/DT
score/NN
,/,
and/CC
I/PRP
played/VBD
it/PRP
that/DT
way/NN
,/,
kind/NN
of/IN
gigue-like/JJ
./.
And/CC
he/PRP
yelled/VBD
out/RP
`/``
dolce/FW
!/.
dolce/FW
!/.
'/''
{/(
`/``
sweet/JJ
!/.
sweet/JJ
!/.
'/''
}/)
./.
''/''
``/``
So/IN
we/PRP
did/VBD
it/PRP
over/RB
,/,
''/''
he/PRP
adds/VBZ
./.
``/``
I/PRP
played/VBD
very/RB
transparently/RB
,/,
with/IN
the/DT
tip/NN
of/IN
the/DT
bow/NN
./.
If/IN
a/DT
conductor/NN
is/VBZ
sensitive/JJ
enough/RB
to/TO
bring/VB
down/RP
the/DT
orchestra/NN
volume/NN
that/DT
point/NN
,/,
it/PRP
makes/VBZ
the/DT
piece/NN
magical/JJ
./.
I/PRP
do/VBP
n't/RB
know/VB
why/WRB
Barber/NNP
never/RB
told/VBD
anybody/NN
else/RB
./.
On/IN
Isaac/NNP
Stern/NNP
's/POS
recording/NN
it/PRP
's/VBZ
very/RB
biting/JJ
./.
''/''
Since/IN
leaving/VBG
Juilliard/NNP
,/,
Mr./NNP
McDuffie/NNP
has/VBZ
made/VBN
some/DT
smart/JJ
moves/NNS
and/CC
some/DT
controversial/JJ
ones/NNS
./.
His/PRP$
guest/JJ
appearance/NN
on/IN
the/DT
NBC/NNP
soap/NN
opera/NN
``/``
Another/DT
World/NNP
,/,
''/''
scandalized/VBD
musical/JJ
elitists/NNS
./.
By/IN
contrast/NN
,/,
he/PRP
's/VBZ
won/VBN
kudos/NNS
for/IN
his/PRP$
espousal/NN
of/IN
William/NNP
Schuman/NNP
's/POS
``/``
Violin/NNP
Concerto/NNP
,/,
''/''
which/WDT
he/PRP
recently/RB
recorded/VBD
for/IN
Angel\/EMI/NNP
along/RB
with/IN
Leonard/NNP
Bernstein/NNP
's/POS
engaging/JJ
``/``
Serenade/NNP
for/IN
Violin/NNP
Solo/NNP
,/,
Strings/NNP
and/CC
Percussion/NNP
./.
''/''
Mr./NNP
McDuffie/NNP
's/POS
sweet/JJ
tone/NN
,/,
heartfelt/JJ
lyricism/NN
and/CC
rhythmic/JJ
punch/NN
make/VBP
him/PRP
an/DT
ideal/JJ
interpreter/NN
of/IN
both/DT
works/NNS
./.
Aided/VBN
by/IN
the/DT
fluid/JJ
playing/NN
of/IN
the/DT
St./NNP
Louis/NNP
Symphony/NNP
under/IN
Leonard/NNP
Slatkin/NNP
's/POS
direction/NN
,/,
this/DT
``/``
Serenade/NNP
''/''
really/RB
swings/VBZ
./.
Mr./NNP
Schuman/NNP
's/POS
``/``
Violin/NNP
Concerto/NNP
,/,
''/''
which/WDT
sounds/VBZ
more/RBR
like/IN
a/DT
mildly/RB
atonal/JJ
rhapsody/NN
for/IN
solo/JJ
violin/NN
with/IN
orchestral/JJ
accompaniment/NN
,/,
meanders/VBZ
until/IN
the/DT
propulsive/JJ
``/``
Agitato/NNP
,/,
fervente/NNP
./.
''/''
But/CC
there/EX
are/VBP
ample/JJ
rewards/NNS
in/IN
its/PRP$
plaintive/JJ
slow/JJ
sections/NNS
and/CC
virtuoso/JJ
fireworks/NNS
for/IN
soloist/NN
,/,
brass/NN
and/CC
timpani/NNS
./.
At/IN
Avery/NNP
Fisher/NNP
Hall/NNP
here/RB
,/,
Mr./NNP
McDuffie/NNP
was/VBD
heard/VBN
recently/RB
with/IN
Mr./NNP
Menuhin/NNP
and/CC
the/DT
Warsaw/NNP
Sinfonia/NNP
in/IN
more/JJR
conventional/JJ
fare/NN
--/:
Bruch/NNP
's/POS
overwrought/JJ
``/``
Violin/NNP
Concerto/NNP
in/IN
G/NNP
Minor/NNP
./.
''/''
His/PRP$
performance/NN
was/VBD
so/RB
effusive/JJ
and/CC
driven/JJ
that/IN
the/DT
phrases/NNS
rarely/RB
breathed/VBD
./.
The/DT
35-member/JJ
Sinfonia/NNP
played/VBD
adroitly/RB
with/IN
a/DT
big/JJ
,/,
lush/JJ
sound/NN
that/WDT
belied/VBD
its/PRP$
size/NN
./.
Whatever/WDT
he/PRP
plays/VBZ
,/,
Mr./NNP
McDuffie/NNP
finds/VBZ
satisfaction/NN
in/IN
the/DT
music/NN
itself/PRP
--/:
``/``
something/NN
greater/JJR
out/RB
there/RB
than/IN
me/PRP
,/,
''/''
as/IN
he/PRP
puts/VBZ
it/PRP
during/IN
an/DT
interview/NN
at/IN
the/DT
Manhattan/NNP
apartment/NN
he/PRP
shares/VBZ
with/IN
wife/NN
,/,
Camille/NNP
,/,
a/DT
literary/JJ
publicist/NN
./.
``/``
A/DT
normal/JJ
person/NN
did/VBD
not/RB
write/VB
the/DT
Beethoven/NNP
`/``
Violin/NNP
Concerto/NNP
,/,
'/''
''/''
he/PRP
declares/VBZ
./.
``/``
Even/RB
when/WRB
I/PRP
hear/VBP
it/PRP
played/VBN
badly/RB
,/,
I/PRP
'm/VBP
still/RB
humbled/VBN
by/IN
the/DT
piece/NN
./.
If/IN
I/PRP
could/MD
ever/RB
feel/VB
I/PRP
've/VBP
contributed/VBN
to/TO
it/PRP
in/IN
some/DT
way/NN
,/,
then/RB
all/PDT
the/DT
hard/JJ
work/NN
has/VBZ
been/VBN
worth/JJ
it/PRP
./.
''/''
Ms./NNP
Jepson/NNP
is/VBZ
a/DT
free-lance/JJ
music/NN
writer/NN
in/IN
New/NNP
York/NNP
./.
Are/VBP
consumers/NNS
too/RB
deep/RB
in/IN
hock/NN
?/.
A/DT
lot/NN
of/IN
observers/NNS
think/VBP
so/RB
,/,
and/CC
,/,
if/IN
they/PRP
're/VBP
right/JJ
,/,
the/DT
whole/JJ
economy/NN
as/RB
well/RB
as/IN
the/DT
spendthrifts/NNS
among/IN
us/PRP
could/MD
be/VB
hurt/VBN
./.
A/DT
sudden/JJ
,/,
forced/JJ
cutback/NN
by/IN
consumers/NNS
,/,
who/WP
normally/RB
account/VBP
for/IN
about/RB
two-thirds/NNS
of/IN
economic/JJ
activity/NN
,/,
would/MD
damp/VB
the/DT
economy/NN
at/IN
a/DT
time/NN
when/WRB
plant-and-equipment/JJ
spending/NN
is/VBZ
slowing/VBG
and/CC
deficit-racked/JJ
governments/NNS
ca/MD
n't/RB
readily/RB
take/VB
up/RP
the/DT
slack/NN
./.
And/CC
another/DT
wave/NN
of/IN
bad/JJ
loans/NNS
would/MD
further/RB
batter/VB
many/JJ
already-shaky/JJ
lending/NN
institutions/NNS
./.
The/DT
worriers/NNS
cite/VBP
some/DT
worrisome/JJ
trends/NNS
./.
During/IN
the/DT
almost/RB
seven-year-old/JJ
economic/JJ
expansion/NN
,/,
inflation-adjusted/JJ
gross/JJ
national/JJ
product/NN
,/,
disposable/JJ
personal/JJ
income/NN
and/CC
personal/JJ
consumption/NN
expenditures/NNS
have/VBP
risen/VBN
30/CD
%/NN
,/,
but/CC
inflation-adjusted/JJ
consumer/NN
installment/NN
credit/NN
has/VBZ
surged/VBN
66/CD
%/NN
./.
And/CC
the/DT
ratio/NN
of/IN
installment/JJ
debt/NN
to/TO
disposable/JJ
personal/JJ
income/NN
--/:
personal/JJ
income/NN
after/IN
taxes/NNS
--/:
has/VBZ
hit/VBN
a/DT
high/NN
of/IN
about/RB
18/CD
1\/2/CD
%/NN
./.
However/RB
,/,
these/DT
figures/NNS
do/VBP
n't/RB
seem/VB
to/TO
worry/VB
Thomas/NNP
A./NN
Durkin/NNP
,/,
an/DT
economist/NN
at/IN
the/DT
Federal/NNP
Reserve/NNP
Board/NNP
./.
In/IN
a/DT
paper/NN
presented/VBN
at/IN
the/DT
recent/JJ
annual/JJ
meeting/NN
of/IN
the/DT
National/NNP
Association/NNP
of/IN
Business/NNP
Economists/NNP
in/IN
San/NNP
Francisco/NNP
,/,
Mr./NNP
Durkin/NNP
comments/NNS
that/IN
``/``
installment/JJ
credit/NN
always/RB
grows/VBZ
rapidly/RB
in/IN
cyclical/JJ
advances/NNS
,/,
and/CC
growth/NN
in/IN
this/DT
cycle/NN
is/VBZ
very/RB
typical/JJ
of/IN
earlier/JJR
experiences/NNS
./.
''/''
He/PRP
adds/VBZ
:/:
``/``
We/PRP
are/VBP
now/RB
witnessing/VBG
a/DT
slowdown/NN
which/WDT
,/,
if/IN
history/NN
is/VBZ
a/DT
guide/NN
,/,
could/MD
persist/VB
for/IN
a/DT
while/NN
./.
''/''
But/CC
what/WP
about/IN
the/DT
debt/NN
burden/NN
?/.
Mr./NNP
Durkin/NNP
doubts/VBZ
that/IN
``/``
there/EX
is/VBZ
some/DT
magic/JJ
level/NN
''/''
at/IN
which/WDT
the/DT
ratio/NN
of/IN
installment/NN
debt/NN
to/TO
disposable/JJ
income/NN
``/``
indicates/VBZ
economic/JJ
problems/NNS
./.
''/''
And/CC
,/,
``/``
more/RBR
importantly/RB
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
the/DT
debt/NN
burden/NN
measured/VBN
other/JJ
ways/NNS
is/VBZ
not/RB
really/RB
in/IN
uncharted/JJ
waters/NNS
./.
''/''
The/DT
chart/NN
below/RB
shows/NNS
why/WRB
(/(
see/VB
accompanying/VBG
illustration/NN
--/:
WSJ/NNP
Oct./NNP
23/CD
,/,
1989/CD
The/DT
ratio/NN
of/IN
consumer/NN
installment/NN
credit/NN
to/TO
disposable/JJ
income/NN
,/,
though/IN
up/RB
a/DT
bit/NN
,/,
has/VBZ
n't/RB
climbed/VBN
steeply/RB
,/,
and/CC
such/JJ
debt/NN
as/IN
a/DT
percent/NN
of/IN
household/NN
assets/NNS
is/VBZ
little/RB
changed/VBN
./.
Moreover/RB
,/,
the/DT
burden/NN
of/IN
consumer/NN
credit/NN
payments/NNS
relative/JJ
to/TO
disposable/JJ
income/NN
may/MD
be/VB
``/``
lower/JJR
in/IN
this/DT
cycle/NN
than/IN
earlier/RBR
,/,
''/''
Mr./NNP
Durkin/NNP
says/VBZ
./.
He/PRP
notes/VBZ
that/IN
some/DT
``/``
revolving/JJ
credit-card/NN
credit/NN
is/VBZ
actually/RB
convenience/NN
credit/NN
''/''
being/VBG
used/VBN
simply/RB
as/IN
a/DT
handy/JJ
way/NN
of/IN
paying/VBG
bills/NNS
rather/RB
than/IN
a/DT
handy/JJ
way/NN
of/IN
borrowing/VBG
./.
In/IN
addition/NN
,/,
he/PRP
says/VBZ
,/,
``/``
longer/JJR
maturities/NNS
on/IN
automobile/NN
and/CC
other/JJ
forms/NNS
of/IN
installment/NN
credit/NN
boost/VBP
the/DT
stock/NN
of/IN
debt/NN
faster/RBR
than/IN
the/DT
flow/NN
of/IN
repayments/NNS
and/CC
the/DT
accompanying/JJ
payment/NN
burden/NN
./.
''/''
And/CC
if/IN
you/PRP
``/``
consider/VB
the/DT
changing/VBG
distribution/NN
of/IN
credit/NN
,/,
''/''
Mr./NNP
Durkin/NNP
says/VBZ
,/,
``/``
much/JJ
of/IN
the/DT
increase/NN
in/IN
debt/NN
in/IN
recent/JJ
years/NNS
is/VBZ
due/JJ
to/TO
increasing/VBG
credit/NN
use/NN
by/IN
higher-income/JJ
families/NNS
,/,
''/''
that/DT
is/VBZ
,/,
``/``
those/DT
probably/RB
best/RB
able/JJ
to/TO
handle/VB
it/PRP
./.
''/''
Citing/VBG
figures/NNS
on/IN
home-equity/JJ
loans/NNS
,/,
he/PRP
notes/VBZ
that/IN
``/``
11/CD
%/NN
of/IN
homeowners/NNS
had/VBD
home-equity/JJ
credit/NN
accounts/NNS
,/,
but/CC
the/DT
proportion/NN
rises/VBZ
to/TO
16/CD
%/NN
of/IN
homeowners/NNS
in/IN
the/DT
$/$
45,000-$60,000/CD
income/NN
range/NN
and/CC
23/CD
%/NN
of/IN
homeowners/NNS
with/IN
income/NN
above/IN
$/$
60,000/CD
./.
''/''
And/CC
much/JJ
home-equity/JJ
credit/NN
is/VBZ
used/VBN
conservatively/RB
./.
``/``
The/DT
most/RBS
frequent/JJ
use/NN
is/VBZ
home/NN
improvement/NN
,/,
which/WDT
presumably/RB
improves/VBZ
the/DT
value/NN
of/IN
the/DT
property/NN
,/,
''/''
Mr./NNP
Durkin/NNP
says/VBZ
./.
So/RB
,/,
it/PRP
is/VBZ
n't/RB
surprising/JJ
that/IN
consumer-credit/JJ
delinquencies/NNS
at/IN
banks/NNS
remain/VBP
,/,
as/IN
the/DT
chart/NN
shows/VBZ
,/,
reassuringly/RB
below/IN
some/DT
earlier/JJR
highs/NNS
accompanying/VBG
illustration/NN
--/:
WSJ/NNP
Oct./NNP
23/CD
,/,
1989/CD
A/DT
severe/JJ
recession/NN
could/MD
,/,
of/IN
course/NN
,/,
raise/VB
delinquency/NN
rates/NNS
,/,
but/CC
so/RB
far/RB
the/DT
current/JJ
levels/NNS
of/IN
consumer/NN
debt/NN
do/VBP
n't/RB
seem/VB
to/TO
loom/VB
as/IN
a/DT
major/JJ
threat/NN
./.
In/IN
fact/NN
,/,
the/DT
current/JJ
weakness/NN
in/IN
auto/NN
buying/NN
and/CC
department-store/NN
sales/NNS
and/CC
the/DT
gradual/JJ
upturn/NN
in/IN
the/DT
household/NN
saving/NN
rate/NN
suggest/VBP
that/IN
consumers/NNS
,/,
conservative/JJ
as/IN
ever/RB
,/,
are/VBP
already/RB
clutching/VBG
their/PRP$
purses/NNS
a/DT
bit/NN
more/RBR
tightly/RB
./.
In/IN
July/NNP
,/,
consumer/NN
installment/NN
credit/NN
outstanding/JJ
fell/VBD
for/IN
the/DT
first/JJ
time/NN
since/IN
January/NNP
1987/CD
./.
``/``
Consumers/NNS
appear/VBP
unwilling/JJ
to/TO
add/VB
to/TO
their/PRP$
leverage/NN
to/TO
support/VB
their/PRP$
spending/NN
,/,
''/''
Bruce/NNP
Steinberg/NNP
,/,
a/DT
Merrill/NNP
Lynch/NNP
economist/NN
,/,
says/VBZ
./.
``/``
As/IN
a/DT
result/NN
,/,
household/NN
debt/NN
appears/VBZ
to/TO
be/VB
stabilizing/VBG
at/IN
around/IN
63/CD
%/NN
of/IN
GNP/NNP
./.
''/''
Consumers/NNS
,/,
credit/NN
cards/NNS
in/IN
hand/NN
,/,
are/VBP
n't/RB
running/VBG
amok/RB
through/IN
the/DT
shopping/NN
malls/NNS
--/:
or/CC
putting/VBG
the/DT
economy/NN
at/IN
any/DT
great/JJ
risk/NN
./.
Maidenform/NNP
Inc./NNP
loves/VBZ
to/TO
be/VB
intimate/JJ
with/IN
its/PRP$
customers/NNS
,/,
but/CC
not/RB
with/IN
the/DT
rest/NN
of/IN
the/DT
public/NN
./.
The/DT
67-year-old/JJ
maker/NN
of/IN
brassieres/NNS
,/,
panties/NNS
,/,
and/CC
lingerie/NN
enjoys/VBZ
one/CD
of/IN
the/DT
best-known/JJ
brand/NN
images/NNS
,/,
but/CC
its/PRP$
financial/JJ
profile/NN
is/VBZ
closely/RB
guarded/VBN
by/IN
members/NNS
of/IN
the/DT
founding/JJ
family/NN
./.
``/``
There/EX
are/VBP
very/RB
few/JJ
companies/NNS
that/WDT
can/MD
boast/VB
of/IN
such/PDT
a/DT
close-knit/JJ
group/NN
,/,
''/''
says/VBZ
Robert/NNP
A./NN
Brawer/NNP
,/,
52/CD
years/NNS
old/JJ
,/,
recently/RB
named/VBN
president/NN
,/,
succeeding/VBG
Beatrice/NNP
Coleman/NNP
,/,
his/PRP$
mother-in-law/NN
,/,
who/WP
remains/VBZ
chairman/NN
./.
``/``
We/PRP
are/VBP
a/DT
vanishing/VBG
breed/NN
,/,
''/''
he/PRP
muses/NNS
./.
Mrs./NNP
Coleman/NNP
,/,
73/CD
,/,
who/WP
declined/VBD
to/TO
be/VB
interviewed/VBN
,/,
is/VBZ
the/DT
Maidenform/NNP
strategist/NN
./.
Sales/NNS
have/VBP
tripled/VBN
during/IN
her/PRP$
21-year/JJ
tenure/NN
to/TO
about/RB
$/$
200/CD
million/CD
in/IN
1988/CD
./.
Maidenform/NNP
says/VBZ
it/PRP
is/VBZ
very/RB
profitable/JJ
but/CC
declines/VBZ
to/TO
provide/VB
specifics/NNS
./.
The/DT
company/NN
sells/VBZ
image/NN
./.
Its/PRP$
current/JJ
ad/NN
campaign/NN
,/,
on/IN
which/WDT
Maidenform/NNP
has/VBZ
spent/VBN
more/JJR
than/IN
$/$
15/CD
million/CD
since/IN
fall/NN
1987/CD
,/,
does/VBZ
n't/RB
even/RB
show/VB
its/PRP$
underwear/NN
products/NNS
,/,
but/CC
rather/RB
men/NNS
like/IN
Christopher/NNP
Reeve/NNP
,/,
star/NN
of/IN
the/DT
``/``
Superman/NNP
''/''
movies/NNS
,/,
talking/VBG
about/IN
their/PRP$
lingerie/NN
turn-ons/NNS
./.
The/DT
Maidenform/NNP
name/NN
``/``
is/VBZ
part/NN
of/IN
American/JJ
pop/NN
culture/NN
,/,
''/''
says/VBZ
Joan/NNP
Sinopoli/NNP
,/,
account/NN
supervisor/NN
of/IN
the/DT
campaign/NN
by/IN
Levine/NNP
,/,
Huntley/NNP
,/,
Schmidt/NNP
&/CC
Beaver/NNP
,/,
a/DT
New/NNP
York/NNP
ad/NN
firm/NN
./.
Maidenform/NNP
generated/VBD
such/JJ
memorable/JJ
campaigns/NNS
as/IN
``/``
I/PRP
dreamed/VBD
I/PRP
.../:
in/IN
my/PRP$
Maidenform/NNP
bra/NN
,/,
''/''
and/CC
``/``
The/DT
Maidenform/NNP
woman/NN
./.
You/PRP
never/RB
know/VBP
where/WRB
she/PRP
'll/MD
turn/VB
up/RP
./.
''/''
``/``
Capitalizing/VBG
on/IN
the/DT
brand/NN
is/VBZ
key/JJ
,/,
''/''
says/VBZ
Mr./NNP
Brawer/NNP
,/,
whose/WP$
immediate/JJ
plans/NNS
include/VBP
further/JJ
international/JJ
expansion/NN
and/CC
getting/VBG
better/JJR
control/NN
of/IN
distribution/NN
outside/IN
the/DT
U.S/NNP
./.
``/``
The/DT
intimate/JJ
apparel/NN
industry/NN
is/VBZ
perceived/VBN
to/TO
be/VB
a/DT
growth/NN
industry/NN
and/CC
clearly/RB
{/(
Maidenform/NNP
a/DT
force/NN
to/TO
be/VB
reckoned/VBN
with/IN
,/,
''/''
says/VBZ
David/NNP
S./NNP
Leibowitz/NNP
,/,
a/DT
special/JJ
situations/NNS
analyst/NN
at/IN
American/NNP
Securities/NNP
Corp./NNP
in/IN
New/NNP
York/NNP
./.
Although/IN
working/VBG
women/NNS
are/VBP
``/``
forced/VBN
to/TO
wear/VB
the/DT
uniform/NN
of/IN
the/DT
day/NN
,/,
to/TO
retain/VB
their/PRP$
femininity/NN
they/PRP
are/VBP
buying/VBG
better/JJR
quality/NN
,/,
more/RBR
upscale/JJ
intimate/JJ
apparel/NN
,/,
''/''
he/PRP
said/VBD
./.
Although/IN
Mr./NNP
Brawer/NNP
's/POS
appointment/NN
as/IN
president/NN
was/VBD
long/RB
expected/VBN
,/,
the/DT
move/NN
on/IN
Sept./NNP
25/CD
precipitated/VBD
the/DT
resignation/NN
of/IN
Alan/NNP
Lesk/NNP
as/IN
senior/JJ
vice/NN
president/NN
of/IN
sales/NNS
and/CC
merchandising/NN
./.
Three/CD
days/NNS
later/RB
,/,
Mr./NNP
Lesk/NNP
was/VBD
named/VBN
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
Olga/NNP
Co./NNP
,/,
a/DT
competing/VBG
intimate/JJ
apparel/NN
division/NN
of/IN
Warnaco/NNP
Inc/NNP
./.
Warnaco/NNP
also/RB
owns/VBZ
Warners/NNS
,/,
another/DT
major/JJ
intimate/JJ
apparel/NN
maker/NN
./.
Mr./NNP
Lesk/NNP
could/MD
n't/RB
be/VB
reached/VBN
to/TO
comment/VB
./.
But/CC
Maidenform/NNP
officials/NNS
say/VBP
that/IN
after/IN
spending/VBG
24/CD
years/NNS
at/IN
Maidenform/NNP
,/,
Mr./NNP
Lesk/NNP
,/,
48/CD
,/,
made/VBD
it/PRP
clear/JJ
he/PRP
wanted/VBD
the/DT
top/JJ
job/NN
./.
``/``
If/IN
you/PRP
want/VBP
the/DT
presidency/NN
of/IN
the/DT
company/NN
,/,
this/DT
is/VBZ
n't/RB
the/DT
firm/NN
to/TO
work/VB
for/IN
,/,
''/''
says/VBZ
James/NNP
Mogan/NNP
,/,
45/CD
,/,
who/WP
was/VBD
named/VBN
senior/JJ
vice/NN
president/NN
of/IN
sales/NNS
,/,
assuming/VBG
some/DT
of/IN
the/DT
responsibilities/NNS
of/IN
Mr./NNP
Lesk/NNP
./.
The/DT
company/NN
downplayed/VBD
the/DT
loss/NN
of/IN
Mr./NNP
Lesk/NNP
and/CC
split/VBD
his/PRP$
merchandising/NN
responsibilities/NNS
among/IN
a/DT
committee/NN
of/IN
four/CD
people/NNS
./.
``/``
My/PRP$
style/NN
is/VBZ
less/RBR
informal/JJ
,/,
''/''
Mr./NNP
Brawer/NNP
says/VBZ
./.
Top/JJ
officers/NNS
insist/VBP
Maidenform/NNP
's/POS
greatest/JJS
strength/NN
is/VBZ
its/PRP$
family/NN
ownership/NN
./.
``/``
You/PRP
ca/MD
n't/RB
go/VB
anywhere/RB
in/IN
this/DT
company/NN
and/CC
find/VB
an/DT
organizational/JJ
chart/NN
,/,
''/''
one/PRP
delights/VBZ
./.
``/``
It/PRP
is/VBZ
fun/NN
competing/VBG
as/IN
a/DT
private/JJ
company/NN
,/,
''/''
Mr./NNP
Brawer/NNP
says/VBZ
./.
``/``
You/PRP
can/MD
think/VB
long/JJ
range/NN
./.
''/''
Other/JJ
major/JJ
players/NNS
in/IN
intimate/JJ
apparel/NN
apparently/RB
feel/VBP
the/DT
same/JJ
way/NN
./.
Warnaco/NNP
was/VBD
taken/VBN
private/JJ
by/IN
Spectrum/NNP
Group/NNP
in/IN
1986/CD
for/IN
about/RB
$/$
487/CD
million/CD
./.
And/CC
last/JJ
year/NN
,/,
Playtex/NNP
Holdings/NNP
Inc./NNP
went/VBD
private/JJ
for/IN
about/RB
$/$
680/CD
million/CD
./.
It/PRP
was/VBD
then/RB
split/VBN
into/IN
Playtex/NNP
Apparel/NNP
Inc./NNP
,/,
the/DT
intimate/JJ
apparel/NN
division/NN
,/,
and/CC
Playtex/NNP
Family/NNP
Products/NNP
Corp./NNP
,/,
which/WDT
makes/VBZ
tampons/NNS
,/,
hair-care/JJ
items/NNS
and/CC
other/JJ
products/NNS
./.
Publicly/RB
traded/VBN
VF/NNP
Corp./NNP
,/,
which/WDT
owns/VBZ
Vanity/NNP
Fair/NNP
,/,
and/CC
Sara/NNP
Lee/NNP
Corp./NNP
,/,
which/WDT
owns/VBZ
Bali/NNP
Co./NNP
,/,
are/VBP
also/RB
strong/JJ
forces/NNS
in/IN
intimate/JJ
apparel/NN
./.
Buy-out/NN
offers/NNS
for/IN
Maidenform/NNP
are/VBP
n't/RB
infrequent/JJ
,/,
says/VBZ
Executive/NNP
Vice/NNP
President/NNP
David/NNP
C./NNP
Masket/NNP
,/,
but/CC
they/PRP
are/VBP
n't/RB
taken/VBN
very/RB
seriously/RB
./.
When/WRB
he/PRP
gets/VBZ
calls/NNS
,/,
``/``
I/PRP
do/VBP
n't/RB
even/RB
have/VB
to/TO
consult/VB
''/''
with/IN
Mrs./NNP
Coleman/NNP
,/,
Mr./NNP
Masket/NNP
says/VBZ
./.
The/DT
company/NN
could/MD
command/VB
a/DT
good/JJ
price/NN
in/IN
the/DT
market/NN
./.
``/``
Over/IN
the/DT
past/NN
three/CD
and/CC
a/DT
half/NN
years/NNS
,/,
apparel/NN
companies/NNS
,/,
many/DT
of/IN
whom/WP
have/VBP
strong/JJ
brand/NN
names/NNS
,/,
have/VBP
been/VBN
bought/VBN
at/IN
about/RB
60/CD
%/NN
of/IN
sales/NNS
,/,
''/''
says/VBZ
Deborah/NNP
Bronston/NNP
,/,
Prudential-Bache/NNP
Securities/NNP
Inc./NNP
apparel/NN
analyst/NN
./.
Mr./NNP
Brawer/NNP
,/,
along/RB
with/IN
Mrs./NNP
Coleman/NNP
and/CC
her/PRP
daughter/NN
,/,
Elizabeth/NNP
,/,
an/DT
attorney/NN
who/WP
is/VBZ
vice/RB
chairman/NN
,/,
are/VBP
the/DT
family/NN
members/NNS
involved/VBN
in/IN
the/DT
operations/NNS
of/IN
Maidenform/NNP
,/,
which/WDT
employs/VBZ
about/RB
5,000/CD
./.
Mr./NNP
Brawer/NNP
's/POS
wife/NN
,/,
Catherine/NNP
,/,
and/CC
Robert/NNP
Stroup/NNP
,/,
Elizabeth/NNP
's/POS
husband/NN
,/,
round/VBP
out/IN
the/DT
five-member/JJ
board/NN
./.
Each/DT
has/VBZ
an/DT
equal/JJ
vote/NN
at/IN
the/DT
monthly/JJ
meetings/NNS
./.
``/``
We/PRP
are/VBP
all/RB
very/RB
amiable/JJ
,/,
''/''
Mr./NNP
Brawer/NNP
says/VBZ
./.
Executives/NNS
say/VBP
Mrs./NNP
Coleman/NNP
is/VBZ
very/RB
involved/VBN
in/IN
the/DT
day-to-day/JJ
operations/NNS
,/,
especially/RB
product/NN
development/NN
./.
In/IN
the/DT
late/JJ
1960s/NNS
she/PRP
designed/VBD
a/DT
lightweight/JJ
stretch/JJ
bra/NN
that/WDT
boosted/VBD
sales/NNS
./.
Her/PRP$
father/NN
,/,
William/NNP
Rosenthal/NNP
,/,
designed/VBD
the/DT
then-dress/JJ
making/VBG
company/NN
's/POS
first/JJ
bra/NN
in/IN
the/DT
1920s/NNS
,/,
which/WDT
he/PRP
said/VBD
gave/VBD
women/NNS
a/DT
``/``
maiden/NN
form/NN
''/''
compared/VBN
with/IN
the/DT
``/``
boyish/JJ
form/NN
''/''
they/PRP
got/VBD
from/IN
the/DT
``/``
flat/JJ
bandages/NNS
''/''
used/VBN
for/IN
support/NN
at/IN
the/DT
time/NN
./.
While/IN
Mr./NNP
Rosenthal/NNP
introduced/VBD
new/JJ
undergarment/NN
designs/NNS
,/,
his/PRP$
wife/NN
,/,
Ida/NNP
,/,
concentrated/VBD
on/IN
sales/NNS
and/CC
other/JJ
financial/JJ
matters/NNS
./.
The/DT
name/NN
Maidenform/NNP
was/VBD
coined/VBN
by/IN
a/DT
third/JJ
business/NN
partner/NN
,/,
Enid/NNP
Bissett/NNP
./.
The/DT
company/NN
has/VBZ
14/CD
plants/NNS
and/CC
distribution/NN
facilities/NNS
in/IN
the/DT
U.S./NNP
,/,
Puerto/NNP
Rico/NNP
,/,
other/JJ
parts/NNS
of/IN
the/DT
Caribbean/NNP
and/CC
Ireland/NNP
./.
Maidenform/NNP
products/NNS
are/VBP
mainly/RB
sold/VBN
at/IN
department/NN
stores/NNS
,/,
but/CC
the/DT
company/NN
has/VBZ
quietly/RB
opened/VBN
a/DT
retail/JJ
store/NN
of/IN
its/PRP$
own/JJ
in/IN
Omaha/NNP
,/,
Neb./NNP
,/,
and/CC
has/VBZ
24/CD
factory/NN
outlets/NNS
,/,
with/IN
plans/NNS
to/TO
add/VB
more/JJR
./.
Before/IN
joining/VBG
Maidenform/NNP
in/IN
1972/CD
,/,
Mr./NNP
Brawer/NNP
,/,
who/WP
holds/VBZ
a/DT
doctoral/JJ
degree/NN
in/IN
English/NNP
from/IN
the/DT
University/NNP
of/IN
Chicago/NNP
,/,
taught/VBD
at/IN
the/DT
University/NNP
of/IN
Wisconsin/NNP
./.
As/IN
a/DT
senior/JJ
vice/NN
president/NN
,/,
he/PRP
has/VBZ
headed/VBN
the/DT
company/NN
's/POS
designer/NN
lingerie/NN
division/NN
,/,
Oscar/NNP
de/IN
la/DT
Renta/NNP
,/,
since/IN
its/PRP$
inception/NN
in/IN
1988/CD
./.
To/TO
maintain/VB
exclusivity/NN
of/IN
that/DT
designer/NN
line/NN
,/,
it/PRP
is/VBZ
n't/RB
labeled/VBN
with/IN
the/DT
Maidenform/NNP
name/NN
./.
While/IN
the/DT
company/NN
has/VBZ
always/RB
been/VBN
family-run/JJ
,/,
Mr./NNP
Brawer/NNP
is/VBZ
n't/RB
the/DT
first/JJ
person/NN
to/TO
marry/VB
into/IN
the/DT
family/NN
and/CC
subsequently/RB
head/VB
Maidenform/NNP
./.
Mrs./NNP
Coleman/NNP
's/POS
husband/NN
,/,
Joseph/NNP
,/,
a/DT
physician/NN
,/,
succeeded/VBD
Mrs./NNP
Rosenthal/NNP
as/IN
president/NN
and/CC
served/VBD
in/IN
that/DT
post/NN
until/IN
his/PRP$
death/NN
in/IN
1968/CD
./.
China/NNP
could/MD
exhaust/VB
its/PRP$
foreign-exchange/NN
reserves/NNS
as/RB
early/RB
as/IN
next/JJ
year/NN
,/,
a/DT
Western/JJ
government/NN
report/NN
says/VBZ
,/,
unless/IN
imports/NNS
are/VBP
cut/VBN
drastically/RB
to/TO
help/VB
narrow/VB
the/DT
balance-of-payments/JJ
deficit/NN
./.
According/VBG
to/TO
the/DT
report/NN
,/,
completed/VBN
last/JJ
month/NN
,/,
if/IN
China/NNP
's/POS
trade/NN
gap/NN
continues/VBZ
to/TO
widen/VB
at/IN
the/DT
pace/NN
seen/VBN
in/IN
the/DT
first/JJ
seven/CD
months/NNS
of/IN
this/DT
year/NN
,/,
the/DT
reserves/NNS
would/MD
be/VB
wiped/VBN
out/RP
either/CC
in/IN
1990/CD
or/CC
1991/CD
./.
A/DT
country/NN
is/VBZ
considered/VBN
financially/RB
healthy/JJ
if/IN
its/PRP$
reserves/NNS
cover/VBP
three/CD
months/NNS
of/IN
its/PRP$
imports/NNS
./.
The/DT
$/$
14/CD
billion/CD
of/IN
reserves/NNS
China/NNP
had/VBD
in/IN
June/NNP
would/MD
cover/VB
just/RB
that/RB
much/JJ
./.
The/DT
report/NN
by/IN
the/DT
Western/JJ
government/NN
,/,
which/WDT
declines/VBZ
to/TO
be/VB
identified/VBN
,/,
concludes/VBZ
that/IN
``/``
a/DT
near-term/JJ
foreign-exchange/NN
payment/NN
problem/NN
can/MD
be/VB
avoided/VBN
only/RB
if/IN
import/NN
growth/NN
drops/VBZ
to/TO
below/IN
5/CD
%/NN
per/IN
annum/NN
./.
''/''
According/VBG
to/TO
Chinese/JJ
customs/NNS
figures/NNS
,/,
import/NN
growth/NN
has/VBZ
slowed/VBN
in/IN
recent/JJ
months/NNS
,/,
dropping/VBG
to/TO
16/CD
%/NN
in/IN
July/NNP
and/CC
7.1/CD
%/NN
in/IN
August/NNP
from/IN
the/DT
year-earlier/JJ
periods/NNS
,/,
compared/VBN
with/IN
an/DT
average/JJ
growth/NN
rate/NN
of/IN
26/CD
%/NN
in/IN
the/DT
first/JJ
half/NN
./.
But/CC
before/IN
import/NN
growth/NN
slowed/VBD
,/,
China/NNP
's/POS
buying/NN
spree/NN
in/IN
the/DT
first/JJ
half/NN
already/RB
had/VBD
taken/VBN
its/PRP$
toll/NN
on/IN
foreign-exchange/NN
reserves/NNS
./.
The/DT
$/$
14/CD
billion/CD
level/NN
in/IN
June/NNP
marked/VBD
a/DT
drop/NN
from/IN
$/$
19/CD
billion/CD
at/IN
the/DT
end/NN
of/IN
April/NNP
./.
China/NNP
's/POS
last/JJ
big/JJ
import/NN
binge/NN
sent/VBD
reserves/NNS
tumbling/VBG
to/TO
$/$
10.6/CD
billion/CD
in/IN
June/NNP
1985/CD
from/IN
$/$
16.6/CD
billion/CD
the/DT
previous/JJ
September/NNP
./.
China/NNP
might/MD
stave/VB
off/RP
a/DT
crisis/NN
if/IN
it/PRP
acts/VBZ
as/RB
forcefully/RB
as/IN
it/PRP
did/VBD
to/TO
arrest/VB
the/DT
1985/CD
decline/NN
,/,
when/WRB
Beijing/NNP
slammed/VBD
the/DT
brakes/NNS
on/IN
foreign-exchange/NN
spending/NN
and/CC
devalued/VBD
the/DT
currency/NN
./.
But/CC
this/DT
time/NN
,/,
China/NNP
faces/VBZ
a/DT
more/RBR
difficult/JJ
battle/NN
because/IN
of/IN
economic/JJ
forces/NNS
that/WDT
have/VBP
come/VBN
into/IN
play/NN
since/IN
the/DT
Tiananmen/NNP
Square/NNP
killings/NNS
June/NNP
4/CD
./.
For/IN
example/NN
,/,
China/NNP
's/POS
hard-currency/NN
income/NN
is/VBZ
expected/VBN
to/TO
suffer/VB
from/IN
the/DT
big/JJ
drop/NN
in/IN
tourist/NN
arrivals/NNS
since/IN
June/NNP
4/CD
./.
Revenue/NN
from/IN
tourism/NN
this/DT
year/NN
is/VBZ
projected/VBN
to/TO
total/VB
$/$
1.3/CD
billion/CD
,/,
down/RB
from/IN
$/$
2.2/CD
billion/CD
last/JJ
year/NN
./.
Because/IN
of/IN
this/DT
and/CC
the/DT
huge/JJ
trade/NN
gap/NN
,/,
the/DT
deficit/NN
in/IN
China/NNP
's/POS
current/JJ
account/NN
,/,
which/WDT
measures/VBZ
trade/NN
in/IN
goods/NNS
and/CC
services/NNS
plus/CC
certain/JJ
unilateral/JJ
transfers/NNS
of/IN
funds/NNS
,/,
is/VBZ
expected/VBN
to/TO
widen/VB
sharply/RB
from/IN
the/DT
$/$
3.8/CD
billion/CD
deficit/NN
last/JJ
year/NN
./.
The/DT
Western/JJ
government/NN
report/NN
suggests/VBZ
a/DT
number/NN
of/IN
scenarios/NNS
for/IN
China/NNP
's/POS
current-account/JJ
balance/NN
,/,
two/CD
of/IN
which/WDT
are/VBP
considered/VBN
most/RBS
likely/RB
./.
In/IN
one/CD
,/,
imports/NNS
and/CC
exports/NNS
continue/VBP
to/TO
grow/VB
at/IN
the/DT
respective/JJ
average/JJ
rates/NNS
of/IN
25/CD
%/NN
and/CC
5/CD
%/NN
recorded/VBN
during/IN
the/DT
first/JJ
seven/CD
months/NNS
,/,
and/CC
the/DT
current-account/JJ
deficit/NN
widens/VBZ
to/TO
$/$
13.1/CD
billion/CD
./.
In/IN
1985/CD
,/,
China/NNP
had/VBD
a/DT
record/JJ
deficit/NN
of/IN
$/$
11.4/CD
billion/CD
./.
The/DT
other/JJ
scenario/NN
assumes/VBZ
that/IN
Beijing/NNP
takes/VBZ
effective/JJ
actions/NNS
to/TO
curb/VB
imports/NNS
in/IN
the/DT
coming/JJ
months/NNS
./.
In/IN
this/DT
case/NN
,/,
China/NNP
would/MD
still/RB
finish/VB
the/DT
year/NN
with/IN
a/DT
current-account/JJ
deficit/NN
of/IN
$/$
8.7/CD
billion/CD
,/,
based/VBN
on/IN
projections/NNS
that/IN
imports/NNS
for/IN
all/DT
of/IN
this/DT
year/NN
grow/VBP
20/CD
%/NN
and/CC
exports/VBZ
10/CD
%/NN
./.
If/IN
China/NNP
were/VBD
still/RB
on/IN
good/JJ
terms/NNS
with/IN
foreign/JJ
lenders/NNS
,/,
it/PRP
might/MD
be/VB
able/JJ
to/TO
stem/VB
the/DT
drain/NN
on/IN
its/PRP$
foreign-exchange/JJ
reserves/NNS
by/IN
using/VBG
some/DT
loan/NN
funds/NNS
to/TO
offset/VB
the/DT
current-account/JJ
deficit/NN
./.
But/CC
since/IN
June/NNP
,/,
foreign/JJ
bankers/NNS
led/VBN
by/IN
international/JJ
financial/JJ
institutions/NNS
have/VBP
virtually/RB
suspended/VBN
their/PRP$
new/JJ
loans/NNS
to/TO
China/NNP
./.
Even/RB
if/IN
borrowing/NN
resumes/NNS
,/,
commercial/JJ
bankers/NNS
are/VBP
n't/RB
expected/VBN
to/TO
lend/VB
as/RB
much/JJ
as/IN
before/RB
./.
In/IN
addition/NN
,/,
economists/NNS
are/VBP
forecasting/VBG
a/DT
slowdown/NN
in/IN
foreign/JJ
direct/JJ
investments/NNS
as/IN
businessmen/NNS
become/VBP
increasingly/RB
wary/JJ
of/IN
China/NNP
's/POS
deteriorating/VBG
political/JJ
and/CC
economic/JJ
environment/NN
./.
On/IN
top/NN
of/IN
all/PDT
this/DT
,/,
foreign-debt/NN
repayments/NNS
are/VBP
expected/VBN
to/TO
peak/VB
in/IN
1991/CD
to/TO
1992/CD
./.
With/IN
less/JJR
capital/NN
coming/VBG
in/RB
,/,
China/NNP
's/POS
balance/NN
of/IN
payments/NNS
would/MD
suffer/VB
./.
The/DT
Western/JJ
government/NN
report/NN
's/POS
first/JJ
scenario/NN
assumes/VBZ
a/DT
30/CD
%/NN
reduction/NN
in/IN
foreign/JJ
borrowing/NN
and/CC
a/DT
5/CD
%/NN
contraction/NN
in/IN
foreign/JJ
direct/JJ
investment/NN
./.
In/IN
the/DT
second/JJ
,/,
foreign/JJ
borrowing/NN
is/VBZ
projected/VBN
to/TO
grow/VB
10/CD
%/NN
and/CC
investment/NN
to/TO
drop/VB
10/CD
%/NN
./.
But/CC
in/IN
either/DT
case/NN
,/,
the/DT
report/NN
says/VBZ
,/,
China/NNP
's/POS
balance/NN
of/IN
payments/NNS
would/MD
rapidly/RB
dry/VB
up/RP
foreign/JJ
reserves/NNS
,/,
which/WDT
are/VBP
used/VBN
to/TO
finance/VB
the/DT
imbalance/NN
./.
In/IN
the/DT
first/JJ
scenario/NN
,/,
the/DT
reserves/NNS
would/MD
be/VB
exhausted/VBN
next/JJ
year/NN
,/,
and/CC
in/IN
the/DT
second/JJ
they/PRP
would/MD
be/VB
wiped/VBN
out/RP
in/IN
1991/CD
./.
Roche/NNP
Holding/NNP
AG/NNP
,/,
parent/NN
of/IN
the/DT
Swiss/JJ
chemical/NN
and/CC
pharmaceutical/JJ
group/NN
,/,
said/VBD
its/PRP$
group/NN
sales/NNS
rose/VBD
22/CD
%/NN
in/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
the/DT
year/NN
to/TO
7.32/CD
billion/CD
francs/NNS
$/$
4.51/CD
billion/CD
The/DT
company/NN
reported/VBD
good/JJ
gains/NNS
in/IN
all/DT
of/IN
its/PRP$
divisions/NNS
./.
Roche/NNP
also/RB
said/VBD
it/PRP
expects/VBZ
a/DT
``/``
considerable/JJ
rise/NN
''/''
in/IN
1989/CD
group/NN
profit/NN
from/IN
the/DT
641.5/CD
million-franc/JJ
$/$
396/CD
million/CD
net/NN
in/IN
1988/CD
./.
New/NNP
Canaan/NNP
Investments/NNP
Inc./NNP
said/VBD
it/PRP
closed/VBD
the/DT
acquisition/NN
of/IN
Carr-Lowrey/NNP
Glass/NNP
Co./NNP
from/IN
Newell/NNP
Co./NNP
,/,
a/DT
Freeport/NNP
,/,
Ill./NNP
,/,
maker/NN
of/IN
do-it-yourself/JJ
home/NN
products/NNS
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Carr-Lowrey/NNP
,/,
a/DT
maker/NN
of/IN
glass/NN
bottles/NNS
for/IN
the/DT
cosmetics/NNS
and/CC
toiletries/NNS
industries/NNS
,/,
had/VBD
sales/NNS
last/JJ
year/NN
of/IN
about/RB
$/$
40/CD
million/CD
./.
New/NNP
Canaan/NNP
Investments/NNP
is/VBZ
a/DT
closely/RB
held/VBN
investment/NN
partnership/NN
with/IN
interests/NNS
primarily/RB
in/IN
the/DT
packaging/NN
industry/NN
./.
Ralph/NNP
Brown/NNP
was/VBD
31,000/CD
feet/NNS
over/IN
Minnesota/NNP
when/WRB
both/DT
jets/NNS
on/IN
his/PRP$
Falcon/NNP
20/NNP
flamed/VBD
out/RP
./.
At/IN
18,000/CD
feet/NNS
,/,
he/PRP
says/VBZ
,/,
he/PRP
and/CC
his/PRP$
co-pilot/NNS
``/``
were/VBD
looking/VBG
for/IN
an/DT
interstate/JJ
or/CC
a/DT
cornfield/NN
''/''
to/TO
land/VB
./.
At/IN
13,000/CD
feet/NNS
,/,
the/DT
engines/NNS
restarted/VBD
./.
But/CC
knowing/VBG
that/IN
mechanics/NNS
would/MD
probably/RB
ground/VB
him/PRP
for/IN
repairs/NNS
,/,
Mr./NNP
Brown/NNP
skipped/VBD
his/PRP$
stop/NN
in/IN
nearby/JJ
Chicago/NNP
and/CC
set/VBD
course/NN
to/TO
get/VB
his/PRP$
load/NN
--/:
a/DT
few/JJ
hundred/CD
parcels/NNS
--/:
to/TO
the/DT
Memphis/NNP
package-sorting/NN

hub/NN
on/IN
time/NN
./.
Had/VBD
he/PRP
been/VBN
a/DT
little/JJ
less/RBR
gung-ho/JJ
,/,
``/``
I/PRP
'd/MD
have/VB
gotten/VBN
the/DT
thing/NN
on/IN
the/DT
ground/NN
and/CC
headed/VBN
for/IN
the/DT
nearest/JJS
bar/NN
,/,
''/''
Mr./NNP
Brown/NNP
says/VBZ
./.
But/CC
he/PRP
flies/VBZ
for/IN
Federal/NNP
Express/NNP
Corp./NNP
,/,
perhaps/RB
the/DT
closest/JJS
thing/NN
in/IN
corporate/JJ
America/NNP
to/TO
the/DT
Green/NNP
Berets/NNPS
./.
Federal/NNP
's/POS
employees/NNS
work/VBP
long/JJ
hours/NNS
and/CC
seem/VBP
to/TO
thrive/VB
on/IN
the/DT
stress/NN
of/IN
racing/VBG
the/DT
clock/NN
./.
Like/IN
Mr./NNP
Brown/NNP
,/,
they/PRP
sometimes/RB
go/VBP
to/TO
surprising/JJ
lengths/NNS
to/TO
meet/VB
that/IN
overarching/JJ
corporate/JJ
goal/NN
:/:
delivering/VBG
the/DT
goods/NNS
on/IN
time/NN
./.
They/PRP
are/VBP
a/DT
tribute/NN
to/TO
Federal/NNP
's/POS
management/NN
which/WDT
,/,
since/IN
the/DT
company/NN
's/POS
founding/NN
16/CD
years/NNS
ago/RB
,/,
has/VBZ
had/VBD
its/PRP$
way/NN
with/IN
its/PRP$
work/NN
force/NN
--/:
an/DT
unusual/JJ
feat/NN
in/IN
the/DT
contentious/JJ
transportation/NN
industry/NN
./.
That/DT
may/MD
soon/RB
change/VB
./.
This/DT
month/NN
,/,
Federal/NNP
's/POS
2,048/CD
pilots/NNS
,/,
including/VBG
some/DT
961/CD
acquired/VBN
along/RB
with/IN
Tiger/NNP
International/NNP
Inc./NNP
in/IN
February/NNP
,/,
will/MD
decide/VB
whether/IN
to/TO
elect/VB
the/DT
powerful/JJ
Air/NNP
Line/NNP
Pilots/NNP
Association/NNP
as/IN
their/PRP$
bargaining/NN
agent/NN
./.
The/DT
election/NN
,/,
which/WDT
would/MD
bring/VB
the/DT
first/JJ
major/JJ
union/NN
to/TO
Federal/NNP
's/POS
U.S./NNP
operations/NNS
,/,
has/VBZ
pitted/VBN
new/JJ
hires/NNS
against/IN
devoted/JJ
veterans/NNS
such/JJ
as/IN
Mr./NNP
Brown/NNP
./.
It/PRP
has/VBZ
also/RB
rattled/VBN
Federal/NNP
's/POS
strongly/RB
anti-union/JJ
management/NN
,/,
which/WDT
is/VBZ
already/RB
contending/VBG
with/IN
melding/VBG
far-flung/JJ
operations/NNS
and/CC
with/IN
falling/VBG
profits/NNS
./.
``/``
A/DT
union/NN
,/,
sooner/RB
or/CC
later/RB
,/,
has/VBZ
to/TO
have/VB
an/DT
adversary/NN
,/,
and/CC
it/PRP
has/VBZ
to/TO
have/VB
a/DT
victory/NN
,/,
''/''
Frederick/NNP
W./NNP
Smith/NNP
,/,
Federal/NNP
's/POS
chairman/NN
and/CC
chief/JJ
executive/NN
,/,
says/VBZ
with/IN
disdain/NN
./.
``/``
In/IN
our/PRP$
formula/NN
,/,
we/PRP
do/VBP
n't/RB
have/VB
any/DT
losers/NNS
except/IN
the/DT
competition/NN
./.
''/''
What/WP
managers/NNS
really/RB
fear/VBP
is/VBZ
that/IN
the/DT
pro-union/JJ
movement/NN
could/MD
spread/VB
beyond/IN
the/DT
pilots/NNS
./.
Under/IN
federal/JJ
transportation/NN
law/NN
,/,
a/DT
government/NN
mediator/NN
is/VBZ
attempting/VBG
to/TO
reconcile/VB
the/DT
melding/NN
of/IN
Tiger/NNP
's/POS
job/NN
classifications/NNS
into/IN
Federal/NNP
's/POS
./.
Depending/VBG
on/IN
the/DT
outcome/NN
,/,
the/DT
merged/JJ
company/NN
may/MD
face/VB
union/NN
elections/NNS
this/DT
fall/NN
among/IN
airplane/NN
mechanics/NNS
,/,
ramp/NN
workers/NNS
,/,
stock/NN
clerks/NNS
and/CC
flight/NN
dispatchers/NNS
./.
These/DT
groups/NNS
constitute/VBP
up/IN
to/TO
10/CD
%/NN
of/IN
its/PRP$
work/NN
force/NN
./.
``/``
Unions/NNS
would/MD
have/VB
a/DT
profound/JJ
effect/NN
on/IN
the/DT
whole/JJ
culture/NN
of/IN
the/DT
company/NN
,/,
''/''
says/VBZ
Bernard/NNP
La/NNP
Londe/NNP
,/,
a/DT
professor/NN
at/IN
Ohio/NNP
State/NNP
University/NNP
at/IN
Columbus/NN
and/CC
a/DT
Federal/NNP
consultant/NN
./.
That/DT
culture/NN
,/,
carefully/RB
crafted/VBN
by/IN
Mr./NNP
Smith/NNP
,/,
leaves/VBZ
little/JJ
,/,
if/IN
any/DT
,/,
room/NN
for/IN
unions/NNS
./.
Since/IN
founding/VBG
the/DT
company/NN
,/,
the/DT
charismatic/JJ
Vietnam/NNP
vet/NN
,/,
who/WP
is/VBZ
still/RB
only/RB
46/CD
years/NNS
old/JJ
,/,
has/VBZ
fostered/VBN
an/DT
ethos/NN
of/IN
combat/NN
./.
Flights/NNS
are/VBP
``/``
missions/NNS
./.
''/''
Mr./NNP
Smith/NNP
's/POS
managers/NNS
have/VBP
,/,
at/IN
times/NNS
,/,
been/VBN
called/VBN
``/``
Ho/NNP
Chi/NNP
Minh/NNP
's/POS
Guerrillas/NNPS
./.
''/''
The/DT
Bravo/NNP
Zulu/NNP
award/NN
,/,
the/DT
Navy/NNP
accolade/NN
for/IN
a/DT
``/``
job/NN
well/RB
done/VBN
,/,
''/''
is/VBZ
bestowed/VBN
on/IN
Federal/NNP
's/POS
workers/NNS
who/WP
surpass/VBP
the/DT
call/NN
of/IN
duty/NN
./.
Competitors/NNS
are/VBP
known/VBN
as/IN
the/DT
``/``
enemy/NN
./.
''/''
To/TO
reinforce/VB
employees/NNS
'/POS
dedication/NN
,/,
Mr./NNP
Smith/NNP
pays/VBZ
well/RB
./.
He/PRP
also/RB
lets/VBZ
workers/NNS
vent/VB
steam/NN
through/IN
an/DT
elaborate/JJ
grievance/NN
procedure/NN
and/CC
,/,
as/IN
a/DT
perk/JJ
,/,
fly/VB
free/JJ
in/IN
empty/JJ
cockpit/NN
seats/NNS
./.
He/PRP
gives/VBZ
pep/NN
talks/NNS
in/IN
periodic/JJ
``/``
family/NN
briefings/NNS
''/''
beamed/VBN
internationally/RB
on/IN
``/``
FXTV/NNP
,/,
''/''
the/DT
company/NN
's/POS
own/JJ
television/NN
network/NN
./.
And/CC
,/,
with/IN
many/JJ
of/IN
his/PRP$
70,000/CD
workers/NNS
,/,
Mr./NNP
Smith/NNP
's/POS
damn-the-torpedoes/JJ
attitude/NN
has/VBZ
caught/VBN
on/RP
./.
James/NNP
Cleveland/NNP
,/,
a/DT
courier/NN
who/WP
earned/VBD
a/DT
Bravo/NNP
Zulu/NNP
for/IN
figuring/VBG
out/RP
how/WRB
to/TO
get/VB
a/DT
major/JJ
customer/NN
's/POS
1,100-parcel-a-week/JJ
load/NN
to/TO
its/PRP$
doorstep/NN
by/IN
8/CD
a.m./NN
,/,
considers/VBZ
himself/PRP
far/RB
more/JJ
than/IN
a/DT
courier/NN
./.
``/``
We/PRP
do/VBP
n't/RB
just/RB
hand/VB
the/DT
customer/NN
the/DT
package/NN
./.
That/DT
's/VBZ
just/RB
the/DT
beginning/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
In/IN
essence/NN
,/,
we/PRP
run/VBP
the/DT
show/NN
./.
''/''
David/NNP
Sanders/NNP
,/,
a/DT
longtime/JJ
pilot/NN
,/,
bristles/VBZ
at/IN
the/DT
mere/JJ
suggestion/NN
that/IN
a/DT
union/NN
might/MD
tamper/VB
with/IN
his/PRP$
flight/NN
schedule/NN
./.
``/``
This/DT
is/VBZ
America/NNP
,/,
''/''
he/PRP
says/VBZ
./.
``/``
Nobody/NN
has/VBZ
the/DT
right/NN
to/TO
tell/VB
me/PRP
how/WRB
much/RB
I/PRP
can/MD
work/VB
./.
''/''
Such/JJ
attitudes/NNS
have/VBP
given/VBN
Federal/NNP
flexibility/NN
,/,
not/RB
only/RB
to/TO
rapidly/RB
implement/VB
new/JJ
technology/NN
but/CC
to/TO
keep/VB
its/PRP$
work/NN
force/NN
extraordinarily/RB
lean/JJ
./.
The/DT
company/NN
deliberately/RB
understaffs/VBZ
,/,
stretching/VBG
employees/NNS
'/POS
schedules/NNS
to/TO
the/DT
limit/NN
./.
But/CC
though/IN
couriers/NNS
work/VBP
as/RB
many/JJ
as/IN
60/CD
hours/NNS
a/DT
week/NN
during/IN
the/DT
autumn/NN
rush/NN
,/,
they/PRP
leave/VBP
early/RB
during/IN
slack/JJ
times/NNS
while/IN
still/RB
being/VBG
assured/VBN
of/IN
a/DT
minimum/JJ
paycheck/NN
./.
Pilots/NNS
,/,
as/IN
well/RB
,/,
routinely/RB
fly/VBP
overtime/RB
to/TO
ensure/VB
that/IN
none/NN
are/VBP
furloughed/VBN
during/IN
seasonal/JJ
lows/NNS
./.
The/DT
operational/JJ
freedom/NN
has/VBZ
also/RB
given/VBN
Federal/NNP
a/DT
leg/NN
up/RB
on/IN
archrival/JJ
United/NNP
Parcel/NNP
Service/NNP
Inc./NNP
,/,
the/DT
nation/NN
's/POS
largest/JJS
employer/NN
of/IN
United/NNP
Brotherhood/NNP
of/IN
Teamsters/NNPS
members/NNS
./.
UPS/NNP
wo/MD
n't/RB
discuss/VB
its/PRP$
labor/NN
practices/NNS
,/,
but/CC
,/,
according/VBG
to/TO
Mr./NNP
Cleveland/NNP
,/,
a/DT
former/JJ
UPS/NNP
employee/NN
,/,
and/CC
others/NNS
,/,
union/NN
work/NN
rules/NNS
prohibit/VBP
UPS/NNP
drivers/NNS
from/IN
doing/VBG
more/JJR
than/IN
carrying/VBG
packages/NNS
between/IN
customers/NNS
and/CC
their/PRP$
vans/NNS
./.
Because/IN
UPS/NNP
drivers/NNS
are/VBP
n't/RB
permitted/VBN
to/TO
load/VB
their/PRP$
own/JJ
vehicles/NNS
at/IN
the/DT
depot/NN
,/,
say/VBP
these/DT
couriers/NNS
,/,
packages/NNS
often/RB
get/VB
buried/VBN
in/IN
the/DT
load/NN
and/CC
are/VBP
delivered/VBN
late/RB
./.
Labor/NN
problems/NNS
are/VBP
the/DT
last/JJ
thing/NN
Mr./NNP
Smith/NNP
needs/VBZ
right/RB
now/RB
./.
Although/IN
the/DT
Tiger/NNP
acquisition/NN
has/VBZ
brought/VBN
Federal/NNP
a/DT
long/JJ
way/NN
toward/IN
becoming/VBG
the/DT
global/JJ
player/NN
it/PRP
wants/VBZ
to/TO
be/VB
,/,
it/PRP
also/RB
has/VBZ
brought/VBN
problems/NNS
./.
It/PRP
more/RBR
than/IN
doubled/VBN
Federal/NNP
's/POS
long-term/JJ
debt/NN
to/TO
$/$
1.9/CD
billion/CD
,/,
thrust/VBN
the/DT
company/NN
into/IN
unknown/JJ
territory/NN
--/:
heavy/JJ
cargo/NN
--/:
and/CC
suddenly/RB
expanded/VBN
its/PRP$
landing/NN
rights/NNS
to/TO
21/CD
countries/NNS
from/IN
four/CD
./.
Federal/NNP
,/,
on/IN
its/PRP$
own/JJ
,/,
had/VBD
n't/RB
been/VBN
doing/VBG
very/RB
well/RB
overseas/JJ
./.
It/PRP
had/VBD
hemorrhaged/VBN
in/IN
its/PRP$
attempt/NN
to/TO
get/VB
into/IN
Asia/NNP
,/,
where/WRB
treaty/NN
restrictions/NNS
forced/VBD
it/PRP
to/TO
fly/VB
some/DT
planes/NNS
half-empty/JJ
on/IN
certain/JJ
routes/NNS
./.
On/IN
routes/NNS
to/TO
South/NNP
America/NNP
,/,
the/DT
company/NN
had/VBD
no/DT
backup/NN
jets/NNS
to/TO
ensure/VB
delivery/NN
when/WRB
planes/NNS
were/VBD
grounded/VBN
./.
In/IN
Europe/NNP
,/,
business/NN
suffered/VBD
as/IN
Federal/NNP
bought/VBD
several/JJ
local/JJ
companies/NNS
,/,
only/RB
to/TO
have/VB
the/DT
managers/NNS
quit/VB
./.
These/DT
and/CC
other/JJ
problems/NNS
squeezed/VBD
Federal/NNP
's/POS
profit/NN
margins/NNS
last/JJ
year/NN
to/TO
8/CD
%/NN
,/,
down/RB
from/IN
more/JJR
than/IN
13/CD
%/NN
annually/RB
in/IN
the/DT
first/JJ
half/DT
of/IN
the/DT
decade/NN
./.
Earnings/NNS
have/VBP
plummeted/VBN
,/,
too/RB
,/,
in/IN
each/DT
of/IN
the/DT
past/JJ
three/CD
quarters/NNS
./.
In/IN
the/DT
fiscal/JJ
first/JJ
period/NN
ended/VBN
Aug./NNP
31/CD
,/,
profit/NN
fell/VBD
54/CD
%/NN
to/TO
$/$
30.4/CD
million/CD
,/,
or/CC
58/CD
cents/NNS
a/DT
share/NN
,/,
mostly/RB
because/IN
of/IN
the/DT
Tiger/NNP
merger/NN
,/,
Federal/NNP
says/VBZ
./.
Federal/NNP
's/POS
stock/NN
price/NN
,/,
however/RB
,/,
has/VBZ
held/VBN
up/RP
well/RB
,/,
driven/VBN
in/IN
part/NN
by/IN
the/DT
general/JJ
run-up/NN
of/IN
airline/NN
stocks/NNS
,/,
analysts/NNS
say/VBP
./.
Since/IN
trading/VBG
as/RB
low/JJ
as/IN
$/$
42.25/CD
a/DT
share/NN
in/IN
May/NNP
,/,
Federal/NNP
's/POS
shares/NNS
have/VBP
rallied/VBN
as/RB
high/RB
as/IN
$/$
57.87/CD
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
They/PRP
closed/VBD
Friday/NNP
at/IN
$/$
53.25/CD
,/,
down/RB
50/CD
cents/NNS
on/IN
the/DT
day/NN
./.
There/EX
's/VBZ
a/DT
certain/JJ
irony/NN
in/IN
the/DT
fact/NN
that/IN
Federal/NNP
Express/NNP
faces/VBZ
its/PRP$
first/JJ
union/NN
problems/NNS
as/IN
a/DT
result/NN
of/IN
its/PRP$
Tiger/NNP
purchase/NN
./.
Tiger/NNP
itself/PRP
was/VBD
founded/VBN
by/IN
a/DT
band/NN
of/IN
gungho/JJ
airmen/NNS
who/WP
had/VBD
airlifted/VBN
supplies/NNS
``/``
over/IN
the/DT
Hump/NNP
''/''
from/IN
India/NNP
to/TO
China/NNP
during/IN
World/NNP
War/NNP
II/NNP
./.
In/IN
the/DT
early/JJ
1970s/CD
,/,
Mr./NNP
Smith/NNP
modeled/VBD
his/PRP$
fledgling/JJ
company/NN
on/IN
Tiger/NNP
's/POS
innovation/NN
of/IN
hub-and-spoke/JJ
and/CC
containerized-cargo/NN
operations/NNS
./.
But/CC
from/IN
early/RB
on/RB
,/,
Tiger/NNP
's/POS
workers/NNS
unionized/VBD
,/,
while/IN
Federal/NNP
's/POS
never/RB
have/VBP
./.
Federal/NNP
Express/NNP
officials/NNS
acknowledge/VBP
mistakes/NNS
in/IN
their/PRP$
drive/NN
overseas/RB
but/CC
say/VBP
it/PRP
will/MD
pay/VB
off/RP
eventually/RB
./.
Analysts/NNS
expect/VBP
Federal/NNP
's/POS
earnings/NNS
to/TO
improve/VB
again/RB
in/IN
its/PRP$
fiscal/JJ
third/JJ
quarter/NN
ending/VBG
Feb./NNP
28/CD
,/,
when/WRB
the/DT
company/NN
should/MD
begin/VB
benefiting/VBG
from/IN
Tiger/NNP
's/POS
extra/JJ
flights/NNS
,/,
back-up/JJ
planes/NNS
and/CC
landing/NN
rights/NNS
./.
Until/IN
then/RB
,/,
they/PRP
expect/VBP
the/DT
cost/NN
of/IN
integrating/VBG
the/DT
two/CD
carriers/NNS
to/TO
continue/VB
crimping/VBG
profits/NNS
./.
For/IN
now/RB
,/,
the/DT
union/NN
issue/NN
is/VBZ
the/DT
most/RBS
nettlesome/JJ
of/IN
Federal/NNP
's/POS
Tiger/NNP
problems/NNS
,/,
management/NN
believes/VBZ
./.
Although/IN
encouraging/VBG
dialogue/NN
between/IN
managers/NNS
and/CC
workers/NNS
,/,
Mr./NNP
Smith/NNP
does/VBZ
n't/RB
countenance/VB
what/WP
he/PRP
considers/VBZ
insubordination/NN
./.
When/WRB
a/DT
large/JJ
group/NN
of/IN
pilots/NNS
once/RB
signed/VBD
petitions/NNS
opposing/VBG
work-rule/JJ
and/CC
compensation/NN
changes/NNS
,/,
he/PRP
called/VBD
a/DT
meeting/NN
in/IN
a/DT
company/NN
hangar/NN
and/CC
dressed/VBD
them/PRP
down/RP
for/IN
challenging/JJ
his/PRP$
authority/NN
./.
He/PRP
then/RB
made/VBD
most/JJS
of/IN
the/DT
changes/NNS
,/,
pilots/NNS
say/VBP
./.
That/DT
sort/NN
of/IN
approach/NN
,/,
however/RB
,/,
has/VBZ
n't/RB
worked/VBD
since/IN
the/DT
addition/NN
of/IN
Tiger/NNP
./.
Its/PRP$
6,500/CD
workers/NNS
,/,
who/WP
had/VBD
battled/VBN
Tiger/NNP
's/POS
management/NN
for/IN
years/NNS
over/IN
givebacks/NNS
,/,
were/VBD
union/NN
members/NNS
until/IN
the/DT
day/NN
of/IN
the/DT
merger/NN
,/,
when/WRB
most/JJS
of/IN
their/PRP$
unions/NNS
were/VBD
automatically/RB
decertified/VBN
./.
Soon/RB
after/IN
the/DT
merger/NN
,/,
moreover/RB
,/,
Federal/NNP
's/POS
management/NN
asked/VBD
Tiger/NNP
's/POS
pilots/NNS
to/TO
sign/VB
an/DT
agreement/NN
stating/VBG
that/IN
they/PRP
could/MD
be/VB
fired/VBN
any/DT
time/NN
,/,
without/IN
cause/NN
or/CC
notice/NN
./.
When/WRB
the/DT
pilots/NNS
refused/VBD
,/,
the/DT
company/NN
retracted/VBD
it/PRP
./.
Mr./NNP
Smith/NNP
angered/VBD
Federal/NNP
's/POS
pilots/NNS
,/,
too/RB
./.
In/IN
his/PRP$
haste/NN
to/TO
seal/VB
the/DT
deal/NN
with/IN
Tiger/NNP
Chairman/NNP
Saul/NNP
Steinberg/NNP
last/JJ
August/NNP
,/,
Mr./NNP
Smith/NNP
ignored/VBD
a/DT
promise/NN
that/IN
he/PRP
had/VBD
made/VBN
to/TO
his/PRP$
own/JJ
pilots/NNS
three/CD
years/NNS
ago/RB
:/:
that/IN
any/DT
fliers/NNS
acquired/VBN
in/IN
future/JJ
mergers/NNS
would/MD
be/VB
``/``
end-tailed/VBN
''/''
--/:
put/VBN
at/IN
the/DT
bottom/NN
of/IN
the/DT
pilot/NN
seniority/NN
list/NN
that/WDT
determines/VBZ
work/NN
schedules/NNS
,/,
pay/NN
and/CC
career/NN
options/NNS
./.
The/DT
Tiger/NNP
merger/NN
agreement/NN
stipulated/VBD
that/IN
the/DT
lists/NNS
be/VB
combined/VBN
on/IN
the/DT
basis/NN
of/IN
tenure/NN
./.
Mr./NNP
Smith/NNP
is/VBZ
trying/VBG
hard/RB
to/TO
allay/VB
the/DT
anger/NN
./.
And/CC
even/RB
some/DT
pro-union/JJ
pilots/NNS
say/VBP
his/PRP$
charisma/NN
and/CC
popularity/NN
among/IN
the/DT
many/JJ
former/JJ
military/JJ
fliers/NNS
could/MD
be/VB
tough/JJ
to/TO
beat/VB
./.
``/``
A/DT
lot/NN
of/IN
people/NNS
are/VBP
identifying/VBG
a/DT
vote/NN
for/IN
representation/NN
as/IN
a/DT
vote/NN
against/IN
Fred/NNP
Smith/NNP
,/,
''/''
says/VBZ
J.X./NNP
Gollich/NNP
,/,
a/DT
Tiger-turned-Federal/JJ
pilot/NN
and/CC
union/NN
activist/NN
./.
Mr./NNP
Smith/NNP
and/CC
other/JJ
top/JJ
Federal/NNP
executives/NNS
have/VBP
met/VBN
with/IN
Tiger/NNP
workers/NNS
in/IN
Los/NNP
Angeles/NNP
,/,
Ohio/NNP
,/,
New/NNP
York/NNP
,/,
Alaska/NNP
,/,
Asia/NNP
and/CC
Europe/NNP
./.
Recently/RB
,/,
they/PRP
have/VBP
appeared/VBN
every/DT
few/JJ
weeks/NNS
in/IN
talk-show/NN
type/NN
videos/NNS
,/,
countering/VBG
pro-union/JJ
arguments/NNS
./.
In/IN
one/CD
video/NN
,/,
Mr./NNP
Smith/NNP
defended/VBD
his/PRP$
agreement/NN
to/TO
merge/VB
the/DT
pilot-seniority/NN
lists/NNS
./.
He/PRP
said/VBD
Mr./NNP
Steinberg/NNP
had/VBD
insisted/VBN
that/IN
the/DT
merger/NN
talks/NNS
move/VB
quickly/RB
./.
Regulators/NNS
,/,
as/IN
well/RB
,/,
might/MD
have/VB
quashed/VBN
the/DT
deal/NN
if/IN
Tiger/NNP
's/POS
pilots/NNS
had/VBD
n't/RB
been/VBN
protected/VBN
,/,
he/PRP
said/VBD
./.
Furthermore/RB
,/,
Mr./NNP
Smith/NNP
added/VBD
,/,
``/``
our/PRP$
contract/NN
with/IN
our/PRP$
pilots/NNS
says/VBZ
that/IN
we/PRP
will/MD
manage/VB
our/PRP$
fleet/NN
operations/NNS
with/IN
their/PRP$
advice/NN
./.
It/PRP
does/VBZ
n't/RB
give/VB
any/DT
particular/JJ
group/NN
the/DT
ability/NN
to/TO
veto/VB
change/NN
./.
''/''
Already/RB
,/,
the/DT
fight/NN
has/VBZ
been/VBN
costly/JJ
./.
The/DT
seniority-list/NN
controversy/NN
,/,
along/RB
with/IN
the/DT
job-classification/NN
dispute/NN
,/,
has/VBZ
been/VBN
turned/VBN
over/RP
to/TO
the/DT
mediator/NN
./.
Meanwhile/RB
,/,
the/DT
company/NN
is/VBZ
operating/VBG
with/IN
two/CD
separate/JJ
pilot/NN
groups/NNS
and/CC
seniority/NN
lists/NNS
,/,
and/CC
that/DT
is/VBZ
costing/VBG
Federal/NNP
``/``
a/DT
big/JJ
number/NN
,/,
''/''
says/VBZ
James/NNP
Barksdale/NNP
,/,
executive/JJ
vice/NN
president/NN
and/CC
chief/NN
operating/NN
officer/NN
./.
The/DT
issue/NN
has/VBZ
also/RB
cost/VBN
Federal/NNP
management/NN
a/DT
lot/NN
of/IN
good/JJ
will/NN
among/IN
its/PRP$
old/JJ
pilots/NNS
./.
``/``
They/PRP
were/VBD
willing/JJ
to/TO
mistreat/VB
us/PRP
because/IN
we/PRP
had/VBD
n't/RB
shown/VBN
any/DT
moxie/NN
,/,
any/DT
resistance/NN
,/,
''/''
says/VBZ
William/NNP
Queenan/NNP
,/,
a/DT
DC-10/NNP
pilot/NN
and/CC
14-year/JJ
Federal/NNP
veteran/NN
./.
Adds/NNP
John/NNP
Poag/NNP
,/,
a/DT
727/NNP
captain/NN
and/CC
past/JJ
chairman/NN
of/IN
the/DT
company-sponsored/JJ
Flight/NNP
Advisory/NNP
Board/NNP
:/:
``/``
They/PRP
've/VBP
made/VBN
all/PDT
these/DT
magnanimous/JJ
gestures/NNS
to/TO
the/DT
Flying/NNP
Tiger/NNP
pilots/NNS
,/,
and/CC
for/IN
us/PRP
,/,
nothing/NN
./.
''/''
Such/JJ
animosity/NN
could/MD
prove/VB
pivotal/JJ
in/IN
the/DT
union/NN
vote/NN
./.
A/DT
large/JJ
majority/NN
of/IN
the/DT
961/CD
former/JJ
Tiger/NNP
fliers/NNS
support/VBP
the/DT
union/NN
,/,
according/VBG
to/TO
a/DT
union/NN
study/NN
./.
But/CC
though/IN
most/JJS
of/IN
the/DT
1,087/CD
Federal/NNP
pilots/NNS
are/VBP
believed/VBN
opposed/VBN
,/,
it/PRP
is/VBZ
unclear/JJ
just/RB
how/WRB
much/RB
their/PRP$
loyalty/NN
to/TO
Mr./NNP
Smith/NNP
has/VBZ
been/VBN
eroded/VBN
./.
The/DT
fight/NN
has/VBZ
turned/VBN
ugly/JJ
and/CC
,/,
among/IN
pilots/NNS
at/IN
least/JJS
,/,
has/VBZ
shattered/VBN
the/DT
esprit/FW
de/FW
corps/FW
that/IN
Mr./NNP
Smith/NNP
worked/VBD
so/RB
hard/RB
to/TO
build/VB
./.
Anti-union/JJ
pilots/NNS
have/VBP
held/VBN
ballot-burning/JJ
parties/NNS
./.
Some/DT
younger/JJR
pilots/NNS
say/VBP
they/PRP
have/VBP
had/VBN
to/TO
endure/VB
anti-union/JJ
harangues/NNS
by/IN
senior/JJ
pilots/NNS
while/IN
flying/VBG
across/IN
the/DT
country/NN
./.
And/CC
for/IN
now/RB
,/,
at/IN
least/JJS
,/,
the/DT
competition/NN
is/VBZ
n't/RB
the/DT
only/JJ
enemy/NN
./.
Barney/NNP
Barnhardt/NNP
,/,
a/DT
727/NNP
captain/NN
and/CC
leader/NN
of/IN
the/DT
pro-union/JJ
forces/NNS
,/,
said/VBD
he/PRP
has/VBZ
received/VBN
two/CD
anonymous/JJ
death/NN
threats/NNS
and/CC
been/VBN
challenged/VBN
to/TO
a/DT
fight/NN
with/IN
tire/NN
irons/NNS
by/IN
a/DT
colleague/NN
./.
``/``
The/DT
pilots/NNS
are/VBP
either/CC
for/IN
us/PRP
or/CC
extremely/RB
against/IN
us/PRP
,/,
''/''
he/PRP
says/VBZ
with/IN
a/DT
sigh/NN
./.
Harsco/NNP
Corp./NNP
said/VBD
it/PRP
obtained/VBD
a/DT
$/$
33.1/CD
million/CD
export/NN
order/NN
for/IN
armored/JJ
recovery/NN
vehicles/NNS
and/CC
related/JJ
support/NN
equipment/NN
./.
Harsco/NNP
declined/VBD
to/TO
say/VB
what/WP
country/NN
placed/VBD
the/DT
order/NN
./.
The/DT
company/NN
said/VBD
it/PRP
received/VBD
an/DT
order/NN
for/IN
23/CD
of/IN
the/DT
vehicles/NNS
,/,
which/WDT
retrieve/VBP
tanks/NNS
and/CC
other/JJ
heavy-tracked/JJ
vehicles/NNS
when/WRB
they/PRP
break/VBP
down/RP
or/CC
are/VBP
damaged/VBN
,/,
and/CC
an/DT
option/NN
for/IN
16/CD
more/JJR
./.
Delivery/NN
is/VBZ
to/TO
begin/VB
in/IN
early/JJ
1991/CD
./.
Harsco/NNP
produces/VBZ
products/NNS
for/IN
defense/NN
,/,
industrial/JJ
,/,
commercial/JJ
and/CC
construction/NN
markets/NNS
./.
The/DT
Senate/NNP
convicted/VBD
U.S./NNP
District/NNP
Judge/NNP
Alcee/NNP
Hastings/NNP
of/IN
Florida/NNP
of/IN
eight/CD
impeachment/NN
articles/NNS
,/,
removing/VBG
the/DT
53-year-old/JJ
judge/NN
from/IN
his/PRP$
$/$
89,500-a-year/JJ
,/,
lifetime/NN
job/NN
./.
Mr./NNP
Hastings/NNP
's/POS
case/NN
was/VBD
particularly/RB
nettlesome/JJ
because/IN
it/PRP
marked/VBD
the/DT
first/JJ
time/NN
a/DT
federal/JJ
official/NN
was/VBD
impeached/VBN
and/CC
removed/VBN
from/IN
office/NN
on/IN
charges/NNS
of/IN
which/WDT
a/DT
jury/NN
had/VBD
acquitted/VBN
him/PRP
./.
In/IN
1983/CD
,/,
Mr./NNP
Hastings/NNP
was/VBD
found/VBN
not/RB
guilty/JJ
of/IN
accepting/VBG
a/DT
$/$
150,000/CD
bribe/NN
in/IN
a/DT
case/NN
before/IN
him/PRP
,/,
the/DT
central/JJ
charge/NN
on/IN
which/WDT
the/DT
Senate/NNP
convicted/VBD
him/PRP
./.
He/PRP
was/VBD
only/RB
the/DT
sixth/JJ
federal/JJ
judge/NN
ever/RB
ousted/VBN
from/IN
office/NN
after/IN
an/DT
impeachment/NN
trial/NN
./.
With/IN
no/DT
floor/NN
debate/NN
,/,
the/DT
Senate/NNP
on/IN
Friday/NNP
voted/VBD
69-26/CD
to/TO
convict/VB
Mr./NNP
Hastings/NNP
of/IN
perjury/NN
and/CC
conspiring/VBG
to/TO
accept/VB
a/DT
bribe/NN
,/,
five/CD
votes/NNS
more/JJR
than/IN
needed/VBN
./.
Conviction/NN
on/IN
any/DT
single/JJ
impeachment/NN
article/NN
was/VBD
enough/JJ
to/TO
remove/VB
Judge/NNP
Hastings/NNP
from/IN
office/NN
./.
He/PRP
was/VBD
found/VBN
not/RB
guilty/JJ
of/IN
three/CD
charges/NNS
,/,
involving/VBG
accusations/NNS
that/IN
he/PRP
had/VBN
improperly/RB
disclosed/VBN
information/NN
about/IN
a/DT
sensitive/JJ
,/,
government/NN
investigation/NN
./.
The/DT
Senate/NNP
did/VBD
n't/RB
vote/VB
on/IN
six/CD
lesser/JJR
charges/NNS
./.
Although/IN
Mr./NNP
Hastings/NNP
had/VBD
been/VBN
acquitted/VBN
by/IN
a/DT
jury/NN
,/,
lawmakers/NNS
handling/VBG
the/DT
prosecution/NN
in/IN
Congress/NNP
had/VBD
argued/VBN
that/IN
the/DT
purpose/NN
of/IN
impeachment/NN
is/VBZ
n't/RB
to/TO
punish/VB
an/DT
individual/NN
./.
Instead/RB
,/,
they/PRP
argued/VBD
that/IN
impeachment/NN
aims/VBZ
to/TO
protect/VB
public/JJ
institutions/NNS
from/IN
people/NNS
who/WP
have/VBP
abused/VBN
their/PRP$
positions/NNS
of/IN
trust/NN
,/,
irrespective/RB
of/IN
the/DT
outcome/NN
of/IN
prior/JJ
criminal/JJ
or/CC
civil/JJ
cases/NNS
./.
Mr./NNP
Hastings/NNP
faced/VBD
the/DT
senators/NNS
and/CC
sat/VBD
impassively/RB
during/IN
the/DT
first/JJ
two/CD
roll-call/JJ
votes/NNS
,/,
then/RB
quickly/RB
left/VBD
the/DT
chamber/NN
./.
In/IN
an/DT
impromptu/JJ
news/NN
conference/NN
on/IN
the/DT
Capitol/NNP
steps/NNS
,/,
he/PRP
denounced/VBD
the/DT
senators/NNS
'/POS
action/NN
./.
``/``
Their/PRP$
opinion/NN
is/VBZ
devoid/JJ
of/IN
the/DT
wisdom/NN
of/IN
the/DT
forefathers/NNS
'/POS
teaching/NN
regarding/VBG
impeachment/NN
,/,
''/''
Mr./NNP
Hastings/NNP
said/VBD
./.
For/IN
the/DT
future/NN
,/,
he/PRP
said/VBD
he/PRP
would/MD
run/VB
for/IN
governor/NN
of/IN
Florida/NNP
./.
Mr./NNP
Hastings/NNP
was/VBD
appointed/VBN
to/TO
the/DT
federal/JJ
bench/NN
by/IN
President/NNP
Carter/NNP
in/IN
1979/CD
and/CC
was/VBD
one/CD
of/IN
the/DT
few/JJ
black/JJ
federal/JJ
judges/NNS
in/IN
the/DT
country/NN
./.
While/IN
he/PRP
packed/VBD
the/DT
Senate/NNP
gallery/NN
with/IN
his/PRP$
supporters/NNS
during/IN
some/DT
of/IN
the/DT
impeachment/NN
trial/NN
,/,
most/JJS
civil/JJ
rights/NNS
groups/NNS
kept/VBD
their/PRP$
distance/NN
from/IN
his/PRP$
case/NN
./.
Following/VBG
the/DT
impeachment/NN
conviction/NN
,/,
Dr./NNP
Benjamin/NNP
Hooks/NNP
,/,
executive/JJ
director/NN
of/IN
the/DT
National/NNP
Association/NNP
for/IN
the/DT
Advancement/NNP
of/IN
Colored/NNP
People/NNP
,/,
issued/VBD
a/DT
restrained/JJ
statement/NN
,/,
warning/VBG
that/IN
the/DT
Hastings/NNP
case/NN
could/MD
set/VB
a/DT
``/``
dangerous/JJ
precedent/NN
,/,
''/''
but/CC
adding/VBG
,/,
``/``
We/PRP
must/MD
respect/VB
the/DT
considered/JJ
judgment/NN
of/IN
the/DT
Senate/NNP
./.
''/''
When/WRB
last/RB
we/PRP
left/VBD
him/PRP
,/,
FBI/NNP
Agent/NNP
Nick/NNP
Mancuso/NNP
had/VBD
solved/VBN
a/DT
murder/NN
mystery/NN
,/,
unraveled/VBN
a/DT
Washington/NNP
political/JJ
scandal/NN
,/,
and/CC
racked/VBN
up/RP
some/DT
pretty/JJ
good/JJ
ratings/NNS
numbers/NNS
in/IN
the/DT
miniseries/NNS
``/``
Favorite/NNP
Son/NNP
./.
''/''
What/WP
next/RB
for/IN
the/DT
crusty/JJ
FBI/NNP
agent/NN
with/IN
the/DT
heart/NN
of/IN
gold/NN
?/.
A/DT
spinoff/NN
series/NN
,/,
of/IN
course/NN
./.
There/EX
are/VBP
plenty/NN
of/IN
worse/JJR
inspirations/NNS
for/IN
shows/NNS
--/:
and/CC
most/JJS
of/IN
them/PRP
had/VBD
already/RB
made/VBN
the/DT
fall/NN
lineup/NN
:/:
a/DT
nun/NN
raising/VBG
some/DT
lovable/JJ
orphans/NNS
./.
A/DT
den/NN
mother/NN
raising/VBG
some/DT
lovable/JJ
teen/NN
models/NNS
./.
A/DT
bunch/NN
of/IN
tans/NNS
and/CC
bathing/NN
suits/NNS
posing/VBG
as/IN
lovable/JJ
lifeguards/NNS
./.
In/IN
that/DT
context/NN
,/,
Robert/NNP
Loggia/NNP
's/POS
riveting/JJ
performance/NN
as/IN
the/DT
unlovable/JJ
--/:
even/RB
crotchety/JJ
--/:
veteran/JJ
agent/NN
seems/VBZ
a/DT
better/JJR
franchise/NN
for/IN
a/DT
series/NN
than/IN
most/JJS
./.
Week/NN
by/IN
week/NN
on/IN
``/``
Mancuso/NNP
FBI/NNP
''/''
(/(
NBC/NNP
,/,
Fridays/NNP
,/,
10/CD
p.m/RB
./.
ET/NNP
he/PRP
pokes/VBZ
around/IN
the/DT
crime/NN
styles/NNS
of/IN
the/DT
rich/JJ
,/,
famous/JJ
and/CC
powerful/JJ
of/IN
the/DT
Washington/NNP
scene/NN
--/:
a/DT
loose/JJ
cannon/NN
on/IN
deck/NN
at/IN
the/DT
FBI/NNP
./.
Over/IN
the/DT
first/JJ
few/JJ
weeks/NNS
,/,
``/``
Mancuso/NNP
FBI/NNP
''/''
has/VBZ
sprung/VBN
straight/RB
from/IN
the/DT
headlines/NNS
,/,
which/WDT
is/VBZ
either/RB
a/DT
commendable/JJ
stab/NN
at/IN
topicality/NN
,/,
or/CC
a/DT
lack/NN
of/IN
imagination/NN
,/,
or/CC
both/DT
./.
The/DT
opening/VBG
show/NN
featured/VBD
a/DT
secretary/NN
of/IN
defense/NN
designate/JJ
accused/VBN
of/IN
womanizing/VBG
(/(
a/FW
la/FW
John/NNP
Tower/NNP
When/WRB
his/PRP$
secretary/NN
is/VBZ
found/VBN
floating/VBG
dead/JJ
in/IN
the/DT
pol/NN
's/POS
pool/NN
,/,
Mancuso/NNP
is/VBZ
called/VBN
in/RP
to/TO
investigate/VB
./.
Last/JJ
week/NN
,/,
a/DT
young/JJ
black/JJ
girl/NN
claimed/VBD
she/PRP
had/VBD
been/VBN
raped/VBN
by/IN
a/DT
white/JJ
police/NN
officer/NN
a/FW
la/FW
Tawana/NNP
Brawley/NNP
In/IN
this/DT
week/NN
's/POS
show/NN
,/,
there/EX
's/VBZ
an/DT
unsafe/JJ
nuclear/JJ
weaponsmaking/NN
facility/NN
a/FW
la/FW
Rocky/NNP
Flats/NNP
Along/IN
the/DT
way/NN
,/,
we/PRP
're/VBP
introduced/VBN
to/TO
the/DT
supporting/JJ
cast/NN
:/:
a/DT
blond/JJ
bombshell/NN
secretary/NN
Randi/NNP
Brazen/NNP
--/:
her/PRP$
real/JJ
name/NN
,/,
honest/JJ
a/DT
scheming/JJ
young/JJ
boss/NN
Fredric/NNP
Lehne/NNP
another/DT
blonde/JJ
bombshell/NN
who/WP
's/VBZ
also/RB
an/DT
idealistic/JJ
lawyer/NN
Lindsay/NNP
Frost/NNP
a/DT
forensics/NNS
expert/NN
Charles/NNP
Siebert/NNP
If/IN
all/DT
of/IN
this/DT
seems/VBZ
a/DT
little/JJ
stale/JJ
,/,
it/PRP
's/VBZ
redeemed/VBN
in/IN
part/NN
by/IN
some/DT
tricky/JJ
plot/NN
twists/NNS
:/:
The/DT
usual/JJ
suspects/NNS
are/VBP
found/VBN
to/TO
be/VB
guilty/JJ
,/,
then/RB
not/RB
guilty/JJ
,/,
then/RB
guilty/JJ
--/:
but/CC
of/IN
a/DT
different/JJ
crime/NN
./.
last/JJ
week/NN
's/POS
rape/NN
case/NN
,/,
for/IN
example/NN
,/,
the/DT
girl/NN
turns/VBZ
out/RP
to/TO
have/VB
been/VBN
a/DT
victim/NN
of/IN
incest/NN
,/,
and/CC
the/DT
biggest/JJS
villains/NNS
are/VBP
the/DT
politicians/NNS
who/WP
exploit/VBP
the/DT
case/NN
./.
all/DT
though/RB
,/,
the/DT
show/NN
is/VBZ
redeemed/VBN
by/IN
the/DT
character/NN
of/IN
Mancuso/NNP
./.
What/WP
makes/VBZ
the/DT
veteran/JJ
FBI/NNP
man/NN
so/RB
endearing/JJ
is/VBZ
his/PRP$
hard-bitten/JJ
cynicism/NN
--/:
earned/VBN
,/,
we/PRP
discover/VBP
,/,
when/WRB
he/PRP
was/VBD
assigned/VBN
to/TO
the/DT
civil/JJ
rights/NNS
movement/NN
back/RB
in/IN
the/DT
1960s/NNS
./.
He/PRP
was/VBD
n't/RB
protecting/VBG
the/DT
Freedom/NNP
Marchers/NNPS
;/:
he/PRP
was/VBD
tailing/VBG
them/PRP
as/IN
subversives/NNS
./.
This/DT
is/VBZ
not/RB
the/DT
``/``
Mississippi/NNP
Burning/NN
''/''
scenario/NN
that/WDT
thrills/VBZ
his/PRP$
young/JJ
colleagues/NNS
:/:
``/``
Kid/NN
,/,
you/PRP
've/VBP
been/VBN
reading/VBG
Classic/NNP
Comics/NNPS
too/RB
long/JJ
,/,
''/''
Mancuso/NN
says/VBZ
./.
``/``
Back/RB
in/IN
1964/CD
,/,
the/DT
FBI/NNP
had/VBD
five/CD
black/JJ
agents/NNS
./.
Three/CD
were/VBD
chauffeurs/NNS
for/IN
J./NNP
Edgar/NNP
Hoover/NNP
,/,
and/CC
two/CD
cleaned/VBD
his/PRP$
house/NN
./.
''/''
At/IN
the/DT
core/NN
of/IN
Mr./NNP
Loggia/NNP
's/POS
Mancuso/NNP
is/VBZ
his/PRP$
world-weary/JJ
truculence/NN
./.
He/PRP
describes/VBZ
a/DT
reporter/NN
as/IN
``/``
Miss/NNP
First/NNP
Amendment/NNP
./.
''/''
He/PRP
describes/VBZ
a/DT
drowned/JJ
corpse/NN
as/IN
``/``
Esther/NNP
Williams/NNP
./.
''/''
And/CC
when/WRB
he/PRP
's/VBZ
told/VBN
``/``
Try/VB
a/DT
little/JJ
tenderness/NN
,/,
''/''
he/PRP
shoots/VBZ
back/RP
``/``
I/PRP
'm/VBP
going/VBG
home/RB
to/TO
try/VB
a/DT
little/JJ
linguine/NN
./.
''/''
Yet/CC
for/IN
all/PDT
his/PRP$
cynicism/NN
,/,
he/PRP
's/VBZ
at/IN
heart/NN
a/DT
closet/NN
idealist/NN
,/,
a/DT
softy/NN
with/IN
a/DT
secret/JJ
crush/NN
on/IN
truth/NN
,/,
justice/NN
and/CC
the/DT
American/NNP
Way/NNP
./.
He/PRP
's/VBZ
the/DT
kind/NN
of/IN
guy/NN
who/WP
rescues/VBZ
trampled/JJ
flags/NNS
./.
If/IN
``/``
Mancuso/NNP
FBI/NNP
''/''
has/VBZ
an/DT
intriguing/JJ
central/JJ
character/NN
,/,
it/PRP
also/RB
has/VBZ
a/DT
major/JJ
flaw/NN
:/:
It/PRP
's/VBZ
wildly/RB
overwritten/JJ
./.
Executive/NNP
Producers/NNP
Steve/NNP
Sohmer/NNP
and/CC
Jeff/NNP
Bleckner/NNP
writer\/producers/NNS
Ken/NNP
Solarz/NNP
and/CC
Steve/NNP
Bello/NNP
this/DT
show/NN
up/RP
to/TO
the/DT
breaking/NN
point/NN
./.
To/TO
start/VB
,/,
there/EX
's/VBZ
always/RB
a/DT
crisis/NN
--/:
and/CC
someone/NN
always/RB
worries/VBZ
,/,
``/``
What/WP
if/IN
the/DT
press/NN
gets/VBZ
a/DT
hold/NN
of/IN
this/DT
?/.
''/''
At/IN
least/JJS
once/RB
an/DT
episode/NN
we/PRP
see/VBP
protestors/NNS
marching/VBG
around/RB
screaming/VBG
slogans/NNS
./.
At/IN
least/JJS
once/RB
Mancuso/NNP
's/POS
boss/NN
yells/VBZ
``/``
In/IN
here/RB
--/:
now/RB
,/,
''/''
and/CC
proceeds/VBZ
to/TO
dress/VB
his/PRP$
investigator/NN
down/RP
:/:
``/``
You/PRP
are/VBP
a/DT
dinosaur/NN
.../:
a/DT
hangover/NN
in/IN
a/DT
$/$
10/CD
suit/NN
.../:
One/CD
more/JJR
word/NN
and/CC
you/PRP
are/VBP
out/IN
on/IN
a/DT
park/NN
bench/NN
,/,
mister/NN
./.
''/''
Finally/RB
,/,
of/IN
course/NN
,/,
the/DT
boss/NN
gives/VBZ
in/RP
,/,
but/CC
he/PRP
's/VBZ
still/RB
yelling/VBG
:/:
``/``
I/PRP
find/VBP
myself/PRP
explaining/VBG
anything/NN
to/TO
Teddy/NNP
Kennedy/NNP
,/,
you/PRP
'll/MD
be/VB
chasing/VBG
stolen/JJ
cars/NNS
in/IN
Anchorage/NNP
./.
''/''
In/IN
fact/NN
,/,
throughout/IN
``/``
Mancuso/NNP
FBI/NNP
,/,
''/''
we/PRP
do/VBP
n't/RB
get/VB
words/NNS
or/CC
lines/NNS
--/:
we/PRP
get/VBP
speeches/NNS
./.
Witnesses/NNS
shout/VBP
,/,
scream/VBP
,/,

pontificate/VBP
:/:
``/``
.../:
a/DT
dream/NN
that/IN
the/DT
planet/NN
could/MD
be/VB
saved/VBN
from/IN
itself/PRP
and/CC
from/IN
the/DT
sadistic/JJ
dumb/JJ
creatures/NNS
who/WP
try/VBP
to/TO
tear/VB
down/RP
every/DT
decent/JJ
man/NN
who/WP
raises/VBZ
his/PRP$
voice/NN
./.
''/''
And/CC
Mancuso/NNP
himself/PRP
is/VBZ
investigating/VBG
at/IN
the/DT
top/NN
of/IN
his/PRP$
lungs/NNS
:/:
``/``
How/WRB
the/DT
hell/NN
can/MD
you/PRP
live/VB
with/IN
yourself/PRP
?/.
''/''
he/PRP
erupts/VBZ
at/IN
a/DT
politician/NN
./.
``/``
You/PRP
twist/VBP
people/NNS
's/POS
trust/NN
./.
You/PRP
built/VBD
your/PRP$
career/NN
on/IN
prejudice/NN
and/CC
hate/NN
./.
The/DT
scars/NNS
will/MD
be/VB
here/RB
years/NNS
after/IN
the/DT
polls/NNS
close/VBP
./.
''/''
In/IN
each/DT
show/NN
,/,
Mancuso/NNP
gets/VBZ
to/TO
unleash/VB
similar/JJ
harangues/NNS
:/:
``/``
Where/WRB
the/DT
hell/NN
are/VBP
they/PRP
gon/VBG
na/TO
live/VB
when/WRB
people/NNS
like/IN
you/PRP
turn/VBP
the/DT
world/NN
into/IN
a/DT
big/JJ
toxic/JJ
waste/NN
dump/NN
?/.
You/PRP
're/VBP
the/DT
real/JJ
criminal/JJ
here/RB
.../:
and/CC
what/WP
you/PRP
did/VBD
was/VBD
n't/RB
just/RB
a/DT
murder/NN
--/:
it/PRP
was/VBD
a/DT
crime/NN
against/IN
humanity/NN
./.
''/''
And/CC
,/,
at/IN
least/JJS
once/RB
a/DT
show/NN
,/,
someone/NN
delivers/VBZ
the/DT
line/NN
``/``
Get/VB
off/IN
that/DT
soapbox/NN
./.
''/''
Now/RB
that/IN
's/VBZ
advice/NN
the/DT
writers/NNS
should/MD
take/VB
to/TO
heart/NN
./.
They/PRP
have/VBP
a/DT
series/NN
with/IN
a/DT
good/JJ
character/NN
,/,
some/DT
interesting/JJ
,/,
even/RB
occasionally/RB
surprising/JJ
plot/NN
lines/NNS
,/,
and/CC
they/PRP
're/VBP
ruining/VBG
it/PRP
./.
Why/WRB
,/,
when/WRB
a/DT
key/JJ
witness/NN
disappears/VBZ
,/,
does/VBZ
Mancuso/NNP
trash/VB
her/PRP$
apartment/NN
,/,
tearing/VBG
down/IN
drapes/NNS
,/,
smashing/VBG
walls/NNS
?/.
It/PRP
's/VBZ
a/DT
bizarre/JJ
and/CC
totally/RB
inappropriate/JJ
reaction/NN
,/,
all/DT
to/TO
add/VB
more/JJR
pizzazz/NN
to/TO
a/DT
script/NN
that/WDT
's/VBZ
already/RB
overdosing/VBG
on/IN
pizzazz/NN
./.
That/DT
's/VBZ
not/RB
plot/NN
./.
That/DT
's/VBZ
not/RB
character/NN
./.
That/DT
's/VBZ
hyperventilating/NN
./.
There/EX
is/VBZ
a/DT
scene/NN
at/IN
the/DT
end/NN
of/IN
the/DT
first/JJ
week/NN
's/POS
show/NN
where/WRB
Mancuso/NNP
attends/VBZ
the/DT
unveiling/NN
of/IN
the/DT
memorial/NN
to/TO
his/PRP$
dead/JJ
partner/NN
David/NNP
./.
Asked/VBN
to/TO
say/VB
a/DT
few/JJ
words/NNS
,/,
he/PRP
pulls/VBZ
out/RP
his/PRP$
crumpled/JJ
piece/NN
of/IN
paper/NN
and/CC
tries/VBZ
to/TO
talk/VB
,/,
but/CC
he/PRP
's/VBZ
too/RB
choked/VBN
up/RP
to/TO
get/VB
the/DT
words/NNS
out/RP
./.
He/PRP
bangs/VBZ
on/IN
the/DT
piece/NN
of/IN
paper/NN
in/IN
frustration/NN
,/,
then/RB
turns/VBZ
and/CC
walks/VBZ
away/RB
./.
It/PRP
was/VBD
a/DT
profoundly/RB
moving/JJ
moment/NN
for/IN
series/NN
television/NN
,/,
and/CC
Robert/NNP
Loggia/NNP
's/POS
acting/NN
resonated/VBD
in/IN
the/DT
silence/NN
./.
There/EX
's/VBZ
a/DT
pretty/RB
good/JJ
program/NN
inside/IN
all/PDT
the/DT
noise/NN
of/IN
``/``
Mancuso/NNP
FBI/NNP
./.
''/''
If/IN
the/DT
show/NN
's/POS
creators/NNS
could/MD
just/RB
let/VB
themselves/PRP
be/VB
quiet/JJ
for/IN
a/DT
little/JJ
,/,
they/PRP
might/MD
just/RB
hear/VB
it/PRP
./.
With/IN
a/DT
Twist/NN
of/IN
the/DT
Wrist/NN
Boys/NNS
with/IN
tops/NNS
,/,
and/CC
Frisbee/NNP
tossers/NNS
,/,
And/CC
P.R./NN
types/NNS
with/IN
bees/NNS
in/IN
their/PRP$
bonnet/NN
,/,
Have/VBP
a/DT
goal/NN
in/IN
common/JJ
,/,
all/DT
of/IN
them/PRP
try/VBP
To/TO
put/VB
the/DT
right/JJ
spin/NN
on/IN
it/PRP
./.
--/:
George/NNP
O./NNP
Ludcke/NNP
./.
Net/JJ
Gain/NNP
Investment/NN
letters/NNS
now/RB
abound/VBP
,/,
I/PRP
really/RB
like/VBP
to/TO
read/VB
them/PRP
;/:
If/IN
I/PRP
peruse/VBP
enough/NN
,/,
I/PRP
've/VBP
found/VBN
I/PRP
've/VBP
no/DT
time/NN
left/VBD
to/TO
heed/VB
them/PRP
!/.
--/:
Bern/NNP
Sharfman/NNP
./.
Daffynition/NN
TV/NN
evangelist/NN
:/:
salesparson/NN
./.
--/:
Marguerite/NNP
Whitley/NNP
May/NNP
./.
Texaco/NNP
Inc./NNP
has/VBZ
purchased/VBN
an/DT
oil-producing/JJ
company/NN
in/IN
Texas/NNP
for/IN
$/$
476.5/CD
million/CD
,/,
its/PRP$
first/JJ
major/JJ
acquisition/NN
since/IN
its/PRP$
legal/JJ
brawl/NN
with/IN
Pennzoil/NNP
Co./NNP
began/VBD
more/JJR
than/IN
four/CD
years/NNS
ago/RB
./.
The/DT
White/NNP
Plains/NNP
,/,
N.Y./NNP
,/,
oil/NN
company/NN
said/VBD
Friday/NNP
that/IN
it/PRP
had/VBD
acquired/VBN
Tana/NNP
Production/NNP
Corp./NNP
,/,
a/DT
subsidiary/NN
of/IN
TRT/NNP
Energy/NNP
Holdings/NNP
Inc./NNP
,/,
for/IN
$/$
95.1/CD
million/CD
in/IN
cash/NN
,/,
with/IN
the/DT
rest/NN
to/TO
be/VB
paid/VBN
in/IN
shares/NNS
of/IN
a/DT
new/JJ
,/,
non-voting/JJ
issue/NN
of/IN
preferred/JJ
stock/NN
./.
Tana/NNP
,/,
which/WDT
holds/VBZ
properties/NNS
in/IN
17/CD
oil/NN
and/CC
gas/NN
fields/NNS
in/IN
south/JJ
Texas/NNP
,/,
will/MD
provide/VB
Texaco/NNP
with/IN
mostly/RB
gas/NN
reserves/NNS
./.
The/DT
fields/NNS
contain/VBP
recoverable/JJ
reserves/NNS
of/IN
435/CD
billion/CD
cubic/JJ
feet/NNS
of/IN
natural/JJ
gas/NN
and/CC
four/CD
million/CD
barrels/NNS
of/IN
oil/NN
./.
``/``
This/DT
acquisition/NN
is/VBZ
another/DT
indication/NN
of/IN
Texaco/NNP
's/POS
commitment/NN
to/TO
increase/VB
the/DT
company/NN
's/POS
reserve/NN
base/NN
,/,
''/''
said/VBD
Chief/NNP
Executive/NNP
Officer/NNP
James/NNP
W./NNP
Kinnear/NNP
./.
Texaco/NNP
has/VBZ
also/RB
been/VBN
attempting/VBG
to/TO
sell/VB
oil/NN
properties/NNS
./.
At/IN
least/JJS
two/CD
years/NNS
ago/RB
,/,
the/DT
company/NN
put/VBD
60/CD
million/CD
barrels/NNS
of/IN
oil/NN
reserves/NNS
on/IN
the/DT
block/NN
./.
They/PRP
were/VBD
either/CC
too/RB
small/JJ
or/CC
uneconomic/JJ
to/TO
maintain/VB
,/,
the/DT
company/NN
said/VBD
./.
Not/RB
all/DT
of/IN
those/DT
parcels/NNS
have/VBP
yet/RB
been/VBN
sold/VBN
./.
Texaco/NNP
acquired/VBD
Tana/NNP
before/IN
it/PRP
completed/VBD
those/DT
sales/NNS
because/IN
Tana/NNP
's/POS
properties/NNS
are/VBP
high/JJ
quality/NN
and/CC
near/IN
other/JJ
fields/NNS
Texaco/NNP
already/RB
owns/VBZ
,/,
a/DT
company/NN
spokeswoman/NN
said/VBD
./.
Texaco/NNP
,/,
like/IN
many/JJ
other/JJ
oil/NN
companies/NNS
,/,
has/VBZ
been/VBN
struggling/VBG
to/TO
replace/VB
its/PRP$
falling/VBG
oil/NN
and/CC
gas/NN
reserves/NNS
./.
Texaco/NNP
's/POS
situation/NN
had/VBD
become/VBN
particularly/RB
complex/JJ
because/IN
much/JJ
of/IN
its/PRP$
effort/NN
had/VBD
for/IN
years/NNS
been/VBN
focused/VBN
on/IN
its/PRP$
brawl/NN
with/IN
Pennzoil/NNP
and/CC
then/RB
on/IN
New/NNP
York/NNP
investor/NN
Carl/NNP
C./NNP
Icahn/NNP
's/POS
attempt/NN
to/TO
take/VB
over/RP
the/DT
company/NN
./.
Pennzoil/NNP
had/VBD
sued/VBN
Texaco/NNP
for/IN
improperly/RB
interfering/VBG
with/IN
its/PRP$
acquisition/NN
of/IN
a/DT
portion/NN
of/IN
Getty/NNP
Oil/NNP
Co/NNP
./.
Eventually/RB
,/,
Texaco/NNP
,/,
which/WDT
was/VBD
forced/VBN
into/IN
bankruptcy/NN
proceedings/NNS
by/IN
that/DT
litigation/NN
,/,
settled/VBD
its/PRP$
fight/NN
with/IN
Pennzoil/NNP
for/IN
$/$
3/CD
billion/CD
in/IN
1986/CD
./.
Mr./NNP
Icahn/NNP
,/,
who/WP
played/VBD
a/DT
key/JJ
role/NN
in/IN
the/DT
settlement/NN
and/CC
attempted/VBD
subsequently/RB
to/TO
take/VB
control/NN
of/IN
the/DT
company/NN
,/,
sold/VBD
his/PRP$
stake/NN
in/IN
Texaco/NNP
just/RB
last/JJ
summer/NN
./.
Completion/NNP
of/IN
Texaco/NNP
's/POS
acquisition/NN
of/IN
Tana/NNP
is/VBZ
subject/JJ
to/TO
government/NN
approval/NN
under/IN
the/DT
Hart-Scott-Rodino/NNP
Antitrust/NNP
Improvements/NNP
Act/NNP
./.
CRI/NNP
Inc./NNP
said/VBD
it/PRP
reduced/VBD
the/DT
estimated/VBN
cash/NN
distribution/NN
for/IN
its/PRP$
Capital/NNP
Housing/NNP
and/CC
Mortgage/NNP
Partners/NNPS
Inc./NNP
trust/NN
to/TO
between/IN
71/CD
cents/NNS
and/CC
74/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
between/IN
75/CD
cents/NNS
and/CC
80/CD
cents/NNS
,/,
for/IN
the/DT
year/NN
ending/VBG
June/NNP
9/CD
,/,
1990/CD
./.
The/DT
change/NN
in/IN
expected/JJ
cash/NN
distributions/NNS
from/IN
the/DT
Champs/NNP
real/JJ
estate/NN
investment/NN
trust/NN
stems/VBZ
from/IN
a/DT
revised/VBN
estimate/NN
of/IN
administrative/JJ
costs/NNS
,/,
said/VBD
Jay/NNP
R./NNP
Cohen/NNP
,/,
Champs/NNP
executive/NN
vice/NN
president/NN
./.
CRI/NNP
,/,
which/WDT
sponsors/VBZ
Champs/NNP
,/,
is/VBZ
a/DT
world-wide/JJ
real/JJ
estate/NN
investment/NN
firm/NN
./.
H&R/NNP
BLOCK/NNP
Inc./NNP
had/VBD
net/JJ
income/NN
of/IN
$/$
100.2/CD
million/CD
,/,
or/CC
$/$
1.90/CD
a/DT
share/NN
,/,
in/IN
the/DT
fiscal/JJ
year/NN
ended/VBN
April/NNP
30/CD
./.
The/DT
figure/NN
was/VBD
incorrectly/RB
shown/VBN
as/IN
a/DT
net/JJ
loss/NN
in/IN
a/DT
chart/NN
accompanying/VBG
Friday/NNP
's/POS
Heard/VBN
on/IN
the/DT
Street/NN
column/NN
./.
the/DT
Street/NN
:/:
H&R/NNP
Block/NNP
's/POS
Success/NN
Story/NN
Seems/VBZ
to/TO
Present/VB
a/DT
Stumbling/JJ
Block/NN
to/TO
Some/DT
Money/NN
Managers/NNS
''/''
--/:
WSJ/NNP
Oct./NNP
20/CD
,/,
1989/CD
)/)
Your/PRP$
Oct./NNP
2/CD
article/NN
on/IN
Daniel/NNP
Yankelovich/NNP
cited/VBD
the/DT
quote/NN
``/``
A/DT
good/JJ
name/NN
is/VBZ
better/JJR
than/IN
great/JJ
riches/NNS
''/''
as/IN
being/VBG
from/IN
Cervantes/NNP
'/POS
``/``
Don/NNP
Quixote/NNP
./.
''/''
Actually/RB
,/,
Cervantes/NNP
borrowed/VBD
that/IN
quote/NN
from/IN
a/DT
writer/NN
of/IN
some/DT
25/CD
centuries/NNS
earlier/RB
:/:
Israel/NNP
's/POS
King/NNP
Solomon/NNP
wrote/VBD
those/DT
words/NNS
in/IN
the/DT
Book/NN
of/IN
Proverbs/NNS
22:1/CD
Michael/NNP
E./NNP
Hill/NNP
San/NNP
Antonio/NNP
,/,
Texas/NNP
Japan/NNP
had/VBD
an/DT
unadjusted/JJ
trade/NN
surplus/NN
of/IN
$/$
1.82/CD
billion/CD
for/IN
the/DT
first/JJ
10/CD
days/NNS
of/IN
October/NNP
,/,
down/RB
from/IN
$/$
3.16/CD
billion/CD
a/DT
year/NN
earlier/RB
,/,
the/DT
Finance/NNP
Ministry/NNP
said/VBD
./.
The/DT
latest/JJS
drop/NN
shows/VBZ
the/DT
narrowing/NN
in/IN
the/DT
nation/NN
's/POS
trade/NN
gap/NN
reflected/VBN
in/IN
successive/JJ
full/JJ
monthly/JJ
reports/NNS
is/VBZ
continuing/VBG
./.
The/DT
report/NN
follows/VBZ
five-consecutive/JJ
declines/NNS
in/IN
full/JJ
monthly/JJ
figures/NNS
./.
Imports/NNS
rose/VBD
sharply/RB
in/IN
the/DT
period/NN
,/,
to/TO
$/$
5.19/CD
billion/CD
from/IN
$/$
4.04/CD
billion/CD
a/DT
year/NN
earlier/RB
,/,
a/DT
change/NN
of/IN
28/CD
%/NN
./.
Exports/NNS
during/IN
the/DT
period/NN
were/VBD
$/$
7.01/CD
billion/CD
,/,
2.6/CD
%/NN
below/IN
$/$
7.20/CD
billion/CD
a/DT
year/NN
ago/RB
./.
Groupe/NNP
AG/NNP
's/POS
chairman/NN
said/VBD
the/DT
Belgian/JJ
insurer/NN
is/VBZ
prepared/JJ
to/TO
give/VB
up/RP
some/DT
of/IN
its/PRP$
independence/NN
to/TO
a/DT
white/JJ
knight/NN
if/IN
necessary/JJ
to/TO
repel/VB
a/DT
raider/NN
./.
Amid/IN
heavy/JJ
buying/NN
of/IN
shares/NNS
in/IN
Belgium/NNP
's/POS
largest/JJS
insurer/NN
,/,
Maurice/NNP
Lippens/NNP
also/RB
warned/VBD
in/IN
an/DT
interview/NN
that/IN
a/DT
white/JJ
knight/NN
,/,
in/IN
buying/VBG
out/RP
a/DT
raider/NN
,/,
could/MD
leave/VB
speculators/NNS
with/IN
big/JJ
losses/NNS
on/IN
their/PRP$
AG/NNP
stock/NN
./.
Since/IN
the/DT
beginning/NN
of/IN
the/DT
year/NN
,/,
the/DT
stock/NN
has/VBZ
nearly/RB
doubled/VBN
,/,
giving/VBG
AG/NNP
a/DT
market/NN
value/NN
of/IN
about/IN
105/CD
billion/CD
Belgian/JJ
francs/NNS
$/$
2.7/CD
billion/CD
The/DT
most/RBS
likely/JJ
white/JJ
knight/NN
would/MD
be/VB
Societe/NNP
Generale/NNP
de/FW
Belgique/NNP
S.A./NNP
,/,
which/WDT
already/RB
owns/VBZ
18/CD
%/NN
of/IN
AG/NNP
and/CC
which/WDT
itself/PRP
is/VBZ
controlled/VBN
by/IN
Cie/NNP
./.
Financiere/NNP
de/FW
Suez/NNP
,/,
the/DT
acquisitive/JJ
French/JJ
financial/JJ
conglomerate/NN
./.
But/CC
Mr./NNP
Lippens/NNP
said/VBD
a/DT
rescue/NN
also/RB
could/MD
involve/VB
Asahi/NNP
Mutual/NNP
Life/NNP
Insurance/NNP
Co./NNP
,/,
which/WDT
owns/VBZ
5/CD
%/NN
of/IN
AG/NNP
./.
AG/NNP
is/VBZ
hardly/RB
alone/RB
in/IN
its/PRP$
anxiety/NN
./.
A/DT
rambunctious/JJ
shake-up/NN
is/VBZ
quickly/RB
reshaping/VBG
Europe/NNP
's/POS
once-stately/JJ
insurance/NN
business/NN
./.
Worried/JJ
by/IN
European/NNP
Community/NNP
directives/NNS
that/WDT
will/MD
remove/VB
many/JJ
of/IN
the/DT
barriers/NNS
to/TO
cross-border/JJ
insurance/NN
services/NNS
,/,
starting/VBG
in/IN
mid-1990/NN
,/,
insurers/NNS
are/VBP
rushing/VBG
to/TO
find/VB
partners/NNS
and/CC
preparing/VBG
for/IN
price/NN
wars/NNS
./.
In/IN
West/NNP
Germany/NNP
and/CC
the/DT
Netherlands/NNPS
,/,
insurers/NNS
are/VBP
flirting/VBG
with/IN
banks/NNS
./.
In/IN
France/NNP
,/,
Suez/NNP
and/CC
Axa-Midi/NNP
Assurances/NNPS
S.A./NNP
both/DT
have/VBP
been/VBN
on/IN
the/DT
prowl/NN
for/IN
giant/JJ
acquisitions/NNS
;/:
Suez/NNP
last/JJ
month/NN
acquired/VBD
control/NN
of/IN
Groupe/NNP
Victoire/NNP
,/,
the/DT
sixth-largest/JJ
European/JJ
insurance/NN
company/NN
,/,
after/IN
a/DT
takeover/NN
battle/NN
with/IN
Cie/NNP
./.
Industrielle/NNP
./.
Mr./NNP
Lippens/NNP
said/VBD
the/DT
volume/NN
of/IN
shares/NNS
changing/VBG
hands/NNS
has/VBZ
grown/VBN
significantly/RB
since/IN
mid-September/NNP
./.
But/CC
he/PRP
estimated/VBD
that/IN
a/DT
raider/NN
would/MD
have/VB
been/VBN
able/JJ
to/TO
amass/VB
no/DT
more/JJR
than/IN
4/CD
%/NN
of/IN
the/DT
shares/NNS
in/IN
recent/JJ
months/NNS
./.
Aside/RB
from/IN
exploring/VBG
plans/NNS
for/IN
joint/JJ
ventures/NNS
or/CC
acquisitions/NNS
,/,
Mr./NNP
Lippens/NNP
has/VBZ
called/VBN
top/JJ
managers/NNS
of/IN
companies/NNS
rumored/VBN
as/IN
potential/JJ
raiders/NNS
--/:
among/IN
them/PRP
,/,
Axa-Midi/NNP
,/,
Union/NNP
des/FW
Assurances/NNP
de/FW
Paris/NNP
and/CC
Suez/NNP
,/,
all/DT
based/VBN
in/IN
France/NNP
./.
They/PRP
have/VBP
all/DT
``/``
very/RB
clearly/RB
stated/VBN
that/IN
they/PRP
have/VBP
not/RB
acquired/VBN
and/CC
are/VBP
not/RB
acquiring/VBG
shares/NNS
of/IN
AG/NNP
,/,
''/''
he/PRP
said/VBD
./.
Any/DT
raider/NN
would/MD
find/VB
it/PRP
hard/JJ
to/TO
crack/VB
AG/NNP
's/POS
battlements/NNS
./.
A/DT
``/``
syndicate/NN
''/''
of/IN
shareholders/NNS
holds/VBZ
just/RB
under/IN
50/CD
%/NN
of/IN
AG/NNP
,/,
Mr./NNP
Lippens/NNP
said/VBD
,/,
and/CC
members/NNS
have/VBP
agreed/VBN
to/TO
give/VB
one/NN
another/DT
the/DT
right/NN
of/IN
first/JJ
refusal/NN
should/MD
they/PRP
sell/VBP
any/DT
AG/NNP
shares/NNS
./.
Aside/RB
from/IN
Generale/NNP
de/FW
Belgique/NNP
and/CC
Asahi/NNP
,/,
the/DT
syndicate/NN
includes/VBZ
Antwerpsche/NNP
Hypotheekkas/NNP
,/,
a/DT
Belgian/JJ
savings/NN
bank/NN
,/,
and/CC
various/JJ
family/NN
interests/NNS
./.
A/DT
Generale/NNP
spokesman/NN
confirmed/VBD
that/IN
the/DT
giant/JJ
Belgian/JJ
holding/VBG
company/NN
would/MD
be/VB
willing/JJ
to/TO
raise/VB
its/PRP$
stake/NN
in/IN
AG/NNP
should/MD
a/DT
raider/NN
seek/VB
control/NN
./.
Asahi/NNS
officials/NNS
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
Even/RB
without/IN
bid/NN
talk/NN
,/,
this/DT
year/NN
's/POS
surge/NN
in/IN
prices/NNS
for/IN
Brussels/NNP
real/JJ
estate/NN
has/VBZ
excited/VBN
interest/NN
in/IN
AG/NNP
./.
The/DT
company/NN
says/VBZ
those/DT
holdings/NNS
constitute/VBP
the/DT
third-biggest/JJ
real-estate/NN
portfolio/NN
in/IN
Belgium/NNP
./.
With/IN
the/DT
dust/NN
settling/VBG
from/IN
the/DT
failed/VBN
coup/NN
attempt/NN
in/IN
Panama/NNP
,/,
one/CD
of/IN
the/DT
many/JJ
lingering/VBG
questions/NNS
the/DT
Bush/NNP
administration/NN
will/MD
ponder/VB
is/VBZ
this/DT
:/:
Is/VBZ
the/DT
National/NNP
Security/NNP
Council/NNP
staff/NN
big/JJ
enough/RB
,/,
and/CC
does/VBZ
it/PRP
have/VB
enough/JJ
clout/NN
,/,
to/TO
do/VB
its/PRP$
job/NN
of/IN
coordinating/VBG
foreign/JJ
policy/NN
?/.
President/NNP
Bush/NNP
's/POS
national/JJ
security/NN
adviser/NN
,/,
Lt./NNP
Gen./NNP
Brent/NNP
Scowcroft/NNP
,/,
came/VBD
into/IN
office/NN
in/IN
January/NNP
intent/JJ
on/IN
making/VBG
the/DT
NSC/NNP
staff/NN
leaner/JJR
and/CC
more/RBR
disciplined/JJ
than/IN
it/PRP
had/VBD
been/VBN
during/IN
the/DT
Reagan/NNP
administration/NN
./.
Gen./NNP
Scowcroft/NNP
was/VBD
a/DT
member/NN
of/IN
the/DT
Tower/NNP
Commission/NNP
,/,
which/WDT
investigated/VBD
the/DT
Iran-Contra/NNP
affair/NN
./.
He/PRP
was/VBD
all/RB
too/RB
aware/JJ
of/IN
how/WRB
a/DT
large/JJ
,/,
inadequately/RB
supervised/JJ
NSC/NNP
staff/NN
had/VBD
spun/VBN
out/IN
of/IN
control/NN
and/CC
nearly/RB
wrecked/VBD
President/NNP
Reagan/NNP
's/POS
second/JJ
term/NN
./.
So/RB
,/,
following/VBG
both/DT
the/DT
style/NN
he/PRP
pursued/VBD
as/IN
President/NNP
Ford/NNP
's/POS
national/JJ
security/NN
adviser/NN
and/CC
the/DT
recommendations/NNS
of/IN
the/DT
Tower/NNP
Commission/NNP
,/,
Gen./NNP
Scowcroft/NNP
has/VBZ
pruned/VBN
the/DT
NSC/NNP
staff/NN
and/CC
tried/VBD
to/TO
ensure/VB
that/IN
it/PRP
sticks/VBZ
to/TO
its/PRP$
assigned/JJ
tasks/NNS
--/:
namely/RB
,/,
gathering/VBG
the/DT
views/NNS
of/IN
the/DT
State/NNP
Department/NNP
,/,
Pentagon/NNP
and/CC
intelligence/NN
community/NN
;/:
serving/VBG
as/IN
an/DT
honest/JJ
broker/NN
in/IN
distilling/VBG
that/DT
information/NN
for/IN
the/DT
president/NN
and/CC
then/RB
making/VBG
sure/JJ
presidential/JJ
decisions/NNS
are/VBP
carried/VBN
out/RB
./.
The/DT
Tower/NNP
Commission/NNP
specifically/RB
said/VBD
that/IN
the/DT
NSC/NNP
staff/NN
should/MD
be/VB
``/``
small/JJ
''/''
and/CC
warned/VBD
against/IN
letting/VBG
``/``
energetic/JJ
self-starters/NNS
''/''
like/IN
Lt./NNP
Col./NNP
Oliver/NNP
North/NNP
strike/VB
out/IN
on/IN
their/PRP$
own/JJ
rather/RB
than/IN
leaving/VBG
the/DT
day-to-day/JJ
execution/NN
of/IN
policies/NNS
to/TO
the/DT
State/NNP
Department/NNP
,/,
Pentagon/NNP
or/CC
Central/NNP
Intelligence/NNP
Agency/NNP
./.
However/RB
,/,
the/DT
Panama/NNP
episode/NN
has/VBZ
raised/VBN
questions/NNS
about/IN
whether/IN
the/DT
NSC/NNP
staff/NN
is/VBZ
sufficiently/RB
big/JJ
,/,
diverse/JJ
and/CC
powerful/JJ
to/TO
coordinate/VB
U.S./NNP
policy/NN
on/IN
tough/JJ
issues/NNS
./.
During/IN
the/DT
coup/NN
attempt/NN
and/CC
its/PRP$
aftermath/NN
,/,
NSC/NNP
staffers/NNS
were/VBD
``/``
stretched/VBN
very/RB
thin/JJ
,/,
''/''
says/VBZ
one/CD
senior/JJ
administration/NN
official/NN
./.
``/``
It/PRP
's/VBZ
a/DT
very/RB
small/JJ
shop/NN
./.
''/''
Gen./NNP
Scowcroft/NNP
does/VBZ
n't/RB
plan/VB
to/TO
increase/VB
the/DT
staff/NN
right/RB
now/RB
,/,
but/CC
is/VBZ
weighing/VBG
that/DT
possibility/NN
,/,
the/DT
official/NN
adds/VBZ
./.
The/DT
NSC/NNP
staff/NN
``/``
does/VBZ
n't/RB
have/VB
the/DT
horsepower/NN
that/IN
I/PRP
believe/VBP
is/VBZ
required/VBN
to/TO
have/VB
an/DT
effective/JJ
interagency/NN
process/NN
,/,
''/''
says/VBZ
Frank/NNP
Gaffney/NNP
,/,
a/DT
former/JJ
Pentagon/NNP
aide/NN
who/WP
now/RB
runs/VBZ
the/DT
Center/NNP
for/IN
Security/NNP
Policy/NNP
,/,
a/DT
conservative/JJ
Washington/NNP
think-tank/NN
./.
``/``
The/DT
problem/NN
with/IN
this/DT
administration/NN
,/,
I/PRP
think/VBP
,/,
is/VBZ
that/IN
by/IN
design/NN
it/PRP
has/VBZ
greatly/RB
diminished/VBN
,/,
both/DT
in/IN
a/DT
physical/JJ
sense/NN
and/CC
in/IN
a/DT
procedural/JJ
sense/NN
,/,
the/DT
role/NN
of/IN
the/DT
NSC/NNP
./.
''/''
The/DT
National/NNP
Security/NNP
Council/NNP
itself/PRP
was/VBD
established/VBN
in/IN
1947/CD
because/IN
policy/NN
makers/NNS
sensed/VBD
a/DT
need/NN
,/,
in/IN
an/DT
increasingly/RB
complex/JJ
world/NN
,/,
for/IN
a/DT
formal/JJ
system/NN
within/IN
the/DT
White/NNP
House/NNP
to/TO
make/VB
sure/JJ
that/IN
communications/NNS
flowed/VBD
smoothly/RB
between/IN
the/DT
president/NN
and/CC
the/DT
State/NNP
Department/NNP
,/,
Pentagon/NNP
and/CC
intelligence/NN
agencies/NNS
./.
By/IN
law/NN
,/,
the/DT
council/NN
includes/VBZ
the/DT
president/NN
,/,
vice/NN
president/NN
and/CC
secretaries/NNS
of/IN
state/NN
and/CC
defense/NN
./.
In/IN
practice/NN
,/,
the/DT
director/NN
of/IN
central/JJ
intelligence/NN
and/CC
chairman/NN
of/IN
the/DT
Joint/NNP
Chiefs/NNPS
of/IN
Staff/NNP
also/RB
serve/VBP
as/IN
unofficial/JJ
members/NNS
./.
But/CC
the/DT
size/NN
,/,
shape/NN
and/CC
role/NN
of/IN
the/DT
NSC/NNP
staff/NN
have/VBP
been/VBN
left/VBN
for/IN
each/DT
president/NN
and/CC
his/PRP$
national/JJ
security/NN
adviser/NN
to/TO
decide/VB
./.
That/DT
task/NN
is/VBZ
one/CD
of/IN
Washington/NNP
's/POS
perennial/JJ
problems/NNS
./.
In/IN
the/DT
Bush/NNP
White/NNP
House/NNP
,/,
the/DT
size/NN
of/IN
the/DT
NSC/NNP
's/POS
staff/NN
of/IN
professional/JJ
officers/NNS
is/VBZ
down/RP
to/TO
about/IN
50/CD
from/IN
about/IN
70/CD
in/IN
1987/CD
,/,
administration/NN
officials/NNS
say/VBP
./.
Administration/NN
officials/NNS
insist/VBP
that/IN
the/DT
size/NN
of/IN
the/DT
staff/NN
was/VBD
n't/RB
a/DT
problem/NN
during/IN
the/DT
Panama/NNP
crisis/NN
./.
But/CC
one/CD
clear/JJ
problem/NN
during/IN
the/DT
coup/NN
attempt/NN
was/VBD
that/IN
the/DT
NSC/NNP
staffer/NN
most/RBS
experienced/JJ
in/IN
Latin/NNP
America/NNP
,/,
Everett/NNP
Briggs/NNP
,/,
was/VBD
gone/VBN
./.
He/PRP
had/VBD
just/RB
resigned/VBN
,/,
at/IN
least/JJS
in/IN
part/NN
because/IN
of/IN
a/DT
feud/NN
with/IN
Assistant/NNP
Secretary/NNP
of/IN
State/NNP
Bernard/NNP
Aronson/NNP
over/IN
the/DT
administration/NN
's/POS
policy/NN
on/IN
Panama/NNP
and/CC
support/NN
for/IN
Nicaragua/NNP
's/POS
Contra/JJ
rebels/NNS
./.
The/DT
absence/NN
of/IN
Mr./NNP
Briggs/NNP
underscored/VBD
the/DT
possible/JJ
inadequacy/NN
of/IN
the/DT
current/JJ
NSC/NNP
staff/NN
./.
Both/DT
Gen./NNP
Scowcroft/NNP
and/CC
his/PRP$
deputy/NN
,/,
Robert/NNP
Gates/NNP
,/,
are/VBP
experts/NNS
in/IN
U.S.-Soviet/JJ
affairs/NNS
./.
Gen./NNP
Scowcroft/NNP
is/VBZ
particularly/RB
well-versed/JJ
in/IN
arms/NNS
control/NN
,/,
and/CC
Mr./NNP
Gates/NNP
has/VBZ
spent/VBN
years/NNS
studying/VBG
Soviet/JJ
politics/NNS
and/CC
society/NN
./.
Both/DT
have/VBP
become/VBN
confidants/NNS
of/IN
President/NNP
Bush/NNP
./.
But/CC
neither/DT
has/VBZ
an/DT
extensive/JJ
background/NN
in/IN
Latin/NNP
America/NNP
,/,
the/DT
Middle/NNP
East/NNP
or/CC
Asia/NNP
./.
In/IN
those/DT
areas/NNS
,/,
the/DT
role/NN
of/IN
NSC/NNP
staffers/NNS
under/IN
them/PRP
therefore/RB
have/VBP
become/VBN
more/RBR
important/JJ
./.
Gen./NNP
Scowcroft/NNP
knows/VBZ
as/RB
well/RB
as/IN
anyone/NN
that/IN
one/CD
of/IN
the/DT
biggest/JJS
dangers/NNS
he/PRP
faces/VBZ
is/VBZ
that/IN
NSC/NNP
staffers/NNS
working/VBG
in/IN
relative/JJ
anonymity/NN
will/MD
take/VB
over/RP
policy-making/NN
and/CC
operational/JJ
tasks/NNS
that/WDT
are/VBP
best/RBS
left/VBN
to/TO
bigger/JJR
and/CC
more/RBR
experienced/JJ
State/NNP
Department/NNP
and/CC
Pentagon/NNP
bureaus/NNS
./.
But/CC
just/RB
as/IN
every/DT
previous/JJ
NSC/NNP
adviser/NN
has/VBZ
,/,
Gen./NNP
Scowcroft/NNP
now/RB
will/MD
have/VB
to/TO
mull/VB
at/IN
what/WDT
point/NN
the/DT
NSC/NNP
staff/NN
becomes/VBZ
too/RB
lean/JJ
and/CC
too/RB
restrained/JJ
./.
Japan/NNP
's/POS
wholesale/JJ
prices/NNS
in/IN
the/DT
first/JJ
10/CD
days/NNS
of/IN
October/NNP
fell/VBD
0.3/CD
%/NN
from/IN
the/DT
previous/JJ
10/CD
days/NNS
but/CC
rose/VBD
3.3/CD
%/NN
from/IN
a/DT
year/NN
ago/RB
,/,
the/DT
Bank/NNP
of/IN
Japan/NNP
said/VBD
./.
The/DT
wholesale/JJ
price/NN
index/NN
stood/VBD
at/IN
89.6/CD
1985/CD
equals/VBZ
100/CD
A/DT
former/JJ
Sperry/NNP
Corp./NNP
marketing/VBG
executive/NN
,/,
admitting/VBG
his/PRP$
role/NN
in/IN
the/DT
Pentagon/NNP
procurement/JJ
scandal/NN
,/,
pleaded/VBD
guilty/JJ
to/TO
bribery/NN
and/CC
conspiracy/NN
charges/NNS
for/IN
helping/VBG
funnel/VB
$/$
400,000/CD
to/TO
a/DT
midlevel/JJ
Navy/NNP
acquisition/NN
official/NN
during/IN
the/DT
early/JJ
1980s/NNS
./.
Frank/NNP
Lavelle/NNP
,/,
who/WP
at/IN
the/DT
time/NN
was/VBD
the/DT
marketing/VBG
director/NN
for/IN
Sperry/NNP
in/IN
Clearwater/NNP
,/,
Fla./NNP
,/,
admitted/VBD
participating/VBG
in/IN
a/DT
scheme/NN
to/TO
bribe/VB
Garland/NNP
Tomlin/NNP
,/,
the/DT
Navy/NNP
official/NN
./.
Mr./NNP
Tomlin/NNP
,/,
who/WP
left/VBD
the/DT
Navy/NNP
in/IN
1985/CD
,/,
pleaded/VBD
guilty/RB
earlier/RBR
this/DT
year/NN
to/TO
related/JJ
conspiracy/NN
,/,
bribery/NN
and/CC
tax-evasion/NN
charges/NNS
./.
The/DT
bribery/NN
scheme/NN
took/VBD
place/NN
between/IN
1982/CD
and/CC
1985/CD
,/,
according/VBG
to/TO
documents/NNS
filed/VBN
by/IN
prosecutors/NNS
in/IN
connection/NN
with/IN
Mr./NNP
Lavelle/NNP
's/POS
guilty/JJ
plea/NN
in/IN
federal/JJ
district/NN
court/NN
in/IN
Alexandria/NNP
,/,
Va/NNP
./.
Sperry/NNP
merged/VBD
with/IN
Burroughs/NNP
Corp./NNP
to/TO
become/VB
Unisys/NNP
Corp./NNP
in/IN
late/JJ
1986/CD
./.
Court/NN
documents/NNS
filed/VBN
by/IN
prosecutors/NNS
indicate/VBP
Mr./NNP
Tomlin/NNP
tried/VBD
to/TO
steer/VB
to/TO
Sperry/NNP
a/DT
multimillion/JJ
dollar/NN
contract/NN
to/TO
computerize/VB
maintenance/NN
of/IN
certain/JJ
Navy/NNP
electronics/NNS
equiment/NN
./.
Mr./NNP
Tomlin/NNP
,/,
among/IN
other/JJ
things/NNS
,/,
illegally/RB
provided/VBD
Mr./NNP
Lavelle/NNP
with/IN
inside/JJ
information/NN
and/CC
documents/NNS
intended/VBN
to/TO
give/VB
Sperry/NNP
an/DT
unfair/JJ
advantage/NN
in/IN
the/DT
competition/NN
,/,
the/DT
documents/NNS
said/VBD
./.
Sperry/NNP
ultimately/RB
was/VBD
eliminated/VBN
from/IN
the/DT
competition/NN
without/IN
receiving/VBG
the/DT
work/NN
./.
Documents/NNS
filed/VBN
by/IN
prosecutors/NNS
also/RB
indicate/VBP
that/IN
Mr./NNP
Lavelle/NNP
and/CC
his/PRP$
fellow/JJ
conspirators/NNS
requested/VBD
and/CC
obtained/VBD
``/``
approval/NN
of/IN
the/DT
scheme/NN
''/''
from/IN
more-senior/JJR
Sperry/NNP
officials/NNS
``/``
because/IN
the/DT
payment/NN
which/WDT
{/(
Mr/NNP
./.
Tomlin/NNP
requested/VBD
was/VBD
so/RB
large/JJ
./.
''/''
Charles/NNP
Gardner/NNP
,/,
a/DT
former/JJ
Unisys/NNP
vice/NN
president/NN
,/,
and/CC
James/NNP
Neal/NNP
,/,
a/DT
former/JJ
company/NN
consultant/NN
,/,
have/VBP
admitted/VBN
participating/VBG
in/IN
this/DT
and/CC
other/JJ
bribery/NN
schemes/NNS
./.
Unisys/NNP
has/VBZ
said/VBN
that/IN
all/DT
of/IN
the/DT
company/NN
officials/NNS
who/WP
participated/VBD
in/IN
improper/JJ
activities/NNS
have/VBP
left/VBN
the/DT
company/NN
./.
Mr./NNP
Lavelle/NNP
faces/VBZ
a/DT
maximum/NN
of/IN
20/CD
years/NNS
in/IN
jail/NN
and/CC
a/DT
$/$
500,000/CD
fine/NN
./.
The/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
said/VBD
a/DT
seat/NN
was/VBD
sold/VBN
for/IN
$/$
500,000/CD
,/,
unchanged/JJ
from/IN
the/DT
sale/NN
Thursday/NNP
./.
Seats/NNS
are/VBP
quoted/VBN
at/IN
$/$
430,000/CD
bid/NN
and/CC
$/$
525,000/CD
asked/VBN
./.
Bureaucrats/NNS
may/MD
deserve/VB
their/PRP$
bad/JJ
reputation/NN
,/,
after/IN
all/DT
./.
Matthew/NNP
Lesko/NNP
,/,
something/NN
of/IN
a/DT
professional/JJ
defender/NN
of/IN
government/NN
,/,
thought/VBD
he/PRP
had/VBD
a/DT
sure-fire/JJ
winner/NN
last/JJ
summer/NN
when/WRB
he/PRP
offered/VBD
$/$
5,000/CD
for/IN
the/DT
best/JJS
``/``
verifiable/JJ
story/NN
of/IN
250/CD
words/NNS
or/CC
less/JJR
about/IN
how/WRB
a/DT
government/NN
bureaucrat/NN
helped/VBD
you/PRP
./.
''/''
He/PRP
sent/VBD
out/RP
thousands/NNS
of/IN
news/NN
releases/NNS
from/IN
his/PRP$
Kensington/NNP
,/,
Md./NNP
,/,
office/NN
./.
He/PRP
plugged/VBD
the/DT
contest/NN
on/IN
Larry/NNP
King/NNP
's/POS
radio/NN
show/NN
,/,
on/IN
Pat/NNP
Sajak/NNP
's/POS
television/NN
show/NN
and/CC
on/IN
the/DT
C-SPAN/NNP
cable/NN
television/NN
network/NN
./.
He/PRP
talked/VBD
about/IN
it/PRP
in/IN
every/DT
speech/NN
he/PRP
made/VBD
as/IN
he/PRP
roamed/VBD
the/DT
country/NN
promoting/VBG
his/PRP$
books/NNS
,/,
which/WDT
dispense/VBP
handy/JJ
how-to/JJ
advice/NN
on/IN
using/VBG
government/NN
information/NN
for/IN
fun/NN
and/CC
profit/NN
./.
Mr./NNP
Lesko/NNP
figured/VBD
he/PRP
would/MD
be/VB
flooded/VBN
with/IN
entries/NNS
by/IN
now/RB
./.
After/IN
all/DT
,/,
he/PRP
says/VBZ
,/,
``/``
we/PRP
've/VBP
got/VBN
like/IN
15/CD
million/CD
bureaucrats/NNS
./.
''/''
And/CC
in/IN
addition/NN
to/TO
the/DT
$/$
5,000/CD
,/,
he/PRP
has/VBZ
promised/VBN
the/DT
winner/NN
a/DT
``/``
My/PRP$
Favorite/JJ
Bureaucrat/NN
''/''
plaque/NN
and/CC
offered/VBD
each/DT
of/IN
two/CD
runners-up/NNS
$/$
500/CD
./.
So/RB
far/RB
,/,
though/RB
,/,
Mr./NNP
Lesko/NNP
has/VBZ
received/VBN
only/RB
one/CD
entry/NN
./.
To/TO
make/VB
matters/NNS
worse/RBR
,/,
the/DT
lone/JJ
nomination/NN
came/VBD
from/IN
another/DT
bureaucrat/NN
:/:
A/DT
woman/NN
from/IN
the/DT
New/NNP
York/NNP
State/NNP
Department/NNP
of/IN
Taxation/NNP
and/CC
Finance/NNP
who/WP
nominated/VBD
her/PRP$
boss/NN
./.
Mr./NNP
Lesko/NNP
,/,
who/WP
is/VBZ
making/VBG
the/DT
rules/NNS
as/IN
he/PRP
goes/VBZ
,/,
has/VBZ
determined/VBN
that/IN
bureaucrats/NNS
are/VBP
eligible/JJ
for/IN
nomination/NN
by/IN
other/JJ
bureaucrats/NNS
./.
But/CC
he/PRP
says/VBZ
he/PRP
would/MD
prefer/VB
to/TO
get/VB
nominations/NNS
from/IN
rank-and-file/JJ
folks/NNS
./.
He/PRP
admits/VBZ
that/IN
he/PRP
has/VBZ
n't/RB
had/VBN
much/JJ
luck/NN
generating/VBG
free/JJ
publicity/NN
for/IN
his/PRP$
contest/NN
./.
Newspapers/NNS
,/,
including/VBG
this/DT
one/CD
,/,
have/VBP
generally/RB
ignored/VBN
his/PRP$
news/NN
releases/NNS
./.
Talk/NN
show/NN
hosts/NNS
quickly/RB
change/VBP
the/DT
topic/NN
./.
But/CC
Mr./NNP
Lesko/NNP
's/POS
staff/NN
is/VBZ
beginning/VBG
to/TO
wonder/VB
whether/IN
there/EX
is/VBZ
n't/RB
some/DT
larger/JJR
phenomenon/NN
foiling/VBG
the/DT
contest/NN
./.
``/``
Is/VBZ
the/DT
government/NN
not/RB
helping/VBG
anybody/NN
?/.
''/''
asks/VBZ
Toni/NNP
Murray/NNP
,/,
an/DT
assistant/NN
to/TO
Mr./NNP
Lesko/NNP
./.
Mr./NNP
Lesko/NNP
himself/PRP
is/VBZ
n't/RB
yet/RB
prepared/JJ
to/TO
accept/VB
that/DT
explanation/NN
./.
``/``
People/NNS
hate/VBP
to/TO
write/VB
,/,
''/''
he/PRP
says/VBZ
./.
``/``
Maybe/RB
people/NNS
do/VBP
n't/RB
believe/VB
I/PRP
want/VBP
to/TO
give/VB
this/DT
money/NN
away/RB
./.
''/''
Maybe/RB
Americans/NNPS
are/VBP
just/RB
so/RB
annoyed/JJ
with/IN
government/NN
that/IN
they/PRP
are/VBP
n't/RB
interested/JJ
in/IN
admitting/VBG
that/IN
bureaucrats/NNS
come/VBP
in/IN
handy/JJ
once/RB
in/IN
a/DT
while/NN
./.
If/IN
he/PRP
sponsored/VBD
a/DT
contest/NN
on/IN
how/WRB
a/DT
bureaucrat/NN
mishandled/VBD
something/NN
,/,
Mr./NNP
Lesko/NNP
admits/VBZ
,/,
``/``
I/PRP
'd/MD
get/VB
5,000/CD
entries/NNS
./.
''/''
Now/RB
there/EX
's/VBZ
an/DT
idea/NN
./.
Ford/NNP
Motor/NNP
Co./NNP
and/CC
Saab-Scania/NNP
AB/NNP
of/IN
Sweden/NNP
broke/VBD
off/RP
talks/NNS
about/IN
a/DT
possible/JJ
alliance/NN
after/IN
Ford/NNP
officials/NNS
concluded/VBD
that/IN
the/DT
cost/NN
to/TO
modernize/VB
Saab/NNP
's/POS
car/NN
operations/NNS
would/MD
outweigh/VB
the/DT
likely/JJ
return/NN
./.
With/IN
the/DT
collapse/NN
of/IN
the/DT
talks/NNS
Friday/NNP
,/,
European/JJ
analysts/NNS
expect/VBP
Ford/NNP
to/TO
intensify/VB
its/PRP$
pursuit/NN
of/IN
British/JJ
luxury/NN
car/NN
maker/NN
Jaguar/NNP
PLC/NNP
,/,
which/WDT
is/VBZ
scrambling/VBG
to/TO
fend/VB
off/RP
a/DT
hostile/JJ
Ford/NNP
bid/NN
by/IN
negotiating/VBG
a/DT
friendly/JJ
alliance/NN
with/IN
Ford/NNP
's/POS
archrival/NN
,/,
General/NNP
Motors/NNPS
Corp/NNP
./.
Saab/NNP
,/,
meanwhile/RB
,/,
is/VBZ
left/VBN
to/TO
continue/VB
its/PRP$
search/NN
for/IN
an/DT
ally/NN
to/TO
shore/NN
up/RP
its/PRP$
sagging/VBG
car/NN
business/NN
./.
Saab/NNP
said/VBD
last/JJ
week/NN
it/PRP
``/``
has/VBZ
had/VBN
and/CC
will/MD
continue/VB
to/TO
have/VB
contacts/NNS
with/IN
other/JJ
manufacturers/NNS
./.
''/''
Among/IN
the/DT
possible/JJ
suitors/NNS
is/VBZ
Italy/NNP
's/POS
Fiat/NNP
S.p/NNP
./.
A/NNP
,/,
analysts/NNS
said/VBD
last/JJ
week/NN
./.
Ford/NNP
and/CC
Saab/NNP
officials/NNS
declined/VBD
to/TO
elaborate/VB
publicly/RB
on/IN
the/DT
announcement/NN
Friday/NNP
that/IN
their/PRP$
negotiations/NNS
failed/VBD
to/TO
yield/VB
an/DT
agreement/NN
``/``
that/WDT
could/MD
make/VB
long-term/JJ
business/NN
sense/NN
to/TO
both/DT
parties/NNS
./.
''/''
Individuals/NNS
close/JJ
to/TO
the/DT
Ford/NNP
side/NN
of/IN
the/DT
negotiations/NNS
said/VBD
late/RB
last/JJ
week/NN
that/IN
the/DT
No./NN
2/CD
U.S./NNP
auto/NN
maker/NN
lost/VBD
interest/NN
as/IN
it/PRP
became/VBD
clear/JJ
that/IN
the/DT
Swedish/JJ
auto/NN
maker/NN
's/POS
automotive/JJ
operations/NNS
had/VBD
little/JJ
to/TO
offer/VB
in/IN
the/DT
way/NN
of/IN
image/NN
or/CC
technology/NN
./.
Ford/NNP
originally/RB
had/VBD
seen/VBN
a/DT
Saab/NNP
alliance/NN
as/IN
a/DT
way/NN
to/TO
expand/VB
its/PRP$
presence/NN
in/IN
the/DT
European/JJ
and/CC
U.S./NNP
luxury/NN
car/NN
markets/NNS
./.
In/IN
addition/NN
,/,
Ford/NNP
and/CC
Saab/NNP
had/VBD
discussed/VBN
a/DT
possible/JJ
link/NN
between/IN
their/PRP$
heavy/JJ
truck/NN
operations/NNS
./.
But/CC
the/DT
talks/NNS
on/IN
a/DT
heavy/JJ
truck/NN
alliance/NN
apparently/RB
did/VBD
n't/RB
go/VB
far/RB
./.
Some/DT
European/JJ
analysts/NNS
speculated/VBD
that/IN
officials/NNS
of/IN
Saab/NNP
's/POS
highly/RB
profitable/JJ
Scania/NNP
truck/NN
operation/NN
balked/VBD
at/IN
surrendering/VBG
any/DT
of/IN
their/PRP$
autonomy/NN
./.
Meanwhile/RB
,/,
Ford/NNP
officials/NNS
became/VBD
convinced/JJ
they/PRP
could/MD
n't/RB
expect/VB
to/TO
recover/VB
the/DT
investment/NN
it/PRP
would/MD
require/VB
to/TO
make/VB
Saab/NNP
's/POS
cars/NNS
competitive/JJ
in/IN
the/DT
increasingly/RB
crowded/JJ
luxury/NN
market/NN
./.
Saab/NNP
's/POS
problems/NNS
were/VBD
underscored/VBN
Friday/NNP
when/WRB
the/DT
company/NN
announced/VBD
that/DT
its/PRP$
car/NN
division/NN
had/VBD
a/DT
1.2/CD
billion/CD
kronor/NNS
$/$
186.1/CD
million/CD
loss/NN
during/IN
the/DT
first/JJ
eight/CD
months/NNS
of/IN
this/DT
year/NN
,/,
slightly/RB
worse/JJR
than/IN
Saab-Scania/NNP
had/VBD
forecast/VBN
in/IN
its/PRP$
first-half/JJ
report/NN
last/JJ
month/NN
./.
Overall/RB
,/,
Saab-Scania/NNP
's/POS
pretax/JJ
profit/NN
during/IN
the/DT
first/JJ
eight/CD
months/NNS
of/IN
the/DT
year/NN
plunged/VBD
48.9/CD
%/NN
to/TO
1/CD
billion/CD
Swedish/JJ
kronor/NNS
$/$
155.1/CD
million/CD
1.96/CD
billion/CD
kronor/NNS
$/$
303.9/CD
million/CD
a/DT
year/NN
earlier/RB
./.
Industry/NN
analysts/NNS
in/IN
Europe/NNP
said/VBD
the/DT
most/RBS
likely/JJ
suitor/NN
for/IN
Saab/NNP
now/RB
is/VBZ
Fiat/NNP
./.
Saab/NNP
and/CC
Fiat/NNP
have/VBP
worked/VBN
together/RB
in/IN
the/DT
past/NN
,/,
in/IN
one/CD
case/NN
developing/VBG
jointly/RB
a/DT
new/JJ
auto/NN
chassis/NN
that/WDT
became/VBD
the/DT
foundation/NN
of/IN
Saab/NNP
's/POS
9000/CD
model/NN
,/,
Fiat/NNP
's/POS
Croma/NNP
and/CC
Lancia/NNP
's/POS
Thema/NNP
./.
Last/JJ
month/NN
,/,
Saab-Scania/NNP
Chief/NNP
Executive/NNP
Georg/NNP
Karnsund/NNP
said/VBD
his/PRP$
company/NN
has/VBZ
had/VBN
talks/NNS
with/IN
Fiat/NNP
about/IN
a/DT
broader/JJR
alliance/NN
./.
But/CC
the/DT
talks/NNS
yielded/VBD
``/``
nothing/NN
so/RB
advanced/JJ
that/IN
we/PRP
needed/VBD
to/TO
make/VB
a/DT
public/JJ
announcement/NN
about/IN
it/PRP
,/,
''/''
he/PRP
said/VBD
./.
As/IN
for/IN
Ford/NNP
,/,
analysts/NNS
expect/VBP
the/DT
end/NN
of/IN
the/DT
Saab/NNP
play/NN
will/MD
allow/VB
the/DT
U.S./NNP
auto/NN
maker/NN
to/TO
focus/VB
its/PRP$
resources/NNS
on/IN
the/DT
intensifying/VBG
struggle/NN
with/IN
GM/NNP
for/IN
a/DT
stake/NN
in/IN
Jaguar/NNP
./.
The/DT
failure/NN
of/IN
the/DT
Saab/NNP
talks/NNS
``/``
makes/VBZ
it/PRP
even/RB
more/RBR
crucial/JJ
for/IN
{/(
Ford/NNP
the/DT
Jaguar/NNP
contest/NN
,/,
said/VBD
Stephen/NNP
Reitman/NNP
,/,
European/JJ
auto/NN
industry/NN
analyst/NN
at/IN
UBS-Phillips/NNP
&/CC
Drew/NNP
in/IN
London/NNP
./.
Ford/NNP
faces/VBZ
an/DT
uphill/JJ
fight/NN
for/IN
Jaguar/NNP
,/,
however/RB
./.
Jaguar/NNP
executives/NNS
said/VBD
last/JJ
week/NN
they/PRP
expect/VBP
to/TO
have/VB
a/DT
friendly/JJ
alliance/NN
with/IN
GM/NNP
wrapped/VBD
up/RB
by/IN
the/DT
end/NN
of/IN
the/DT
month/NN
./.
GM/NNP
,/,
meanwhile/RB
,/,
is/VBZ
hosting/VBG
a/DT
delegation/NN
of/IN
members/NNS
of/IN
the/DT
British/NNP
Parliament/NNP
who/WP
are/VBP
touring/VBG
the/DT
auto/NN
maker/NN
's/POS
headquarter/JJ
operations/NNS
in/IN
Detroit/NNP
./.
A/DT
GM/NNP
spokesman/NN
said/VBD
the/DT
visit/NN
is/VBZ
n't/RB
connected/JJ
to/TO
the/DT
Jaguar/NNP
situation/NN
./.
But/CC
Ford/NNP
clearly/RB
views/VBZ
Jaguar/NNP
as/IN
a/DT
prize/NN
worth/JJ
fighting/VBG
for/IN
,/,
since/IN
the/DT
company/NN
's/POS
gilded/JJ
brand/NN
image/NN
would/MD
give/VB
Ford/NNP
a/DT
badly/RB
needed/JJ
leg/NN
up/RB
in/IN
the/DT
high/JJ
end/NN
of/IN
the/DT
luxury/NN
markets/NNS
in/IN
both/DT
Europe/NNP
and/CC
the/DT
U.S/NNP
./.
Last/JJ
week/NN
,/,
Ford/NNP
encountered/VBD
a/DT
setback/NN
in/IN
its/PRP$
effort/NN
to/TO
broaden/VB
its/PRP$
U.S./NNP
luxury/NN
offerings/NNS
when/WRB
it/PRP
was/VBD
forced/VBN
to/TO
abandon/VB
a/DT
four-year-old/JJ
effort/NN
to/TO
market/VB
its/PRP$
German-built/JJ
Scorpio/NNP
sedan/NN
in/IN
the/DT
U.S./NNP
as/IN
a/DT
luxury/NN
import/NN
under/IN
the/DT
Merkur/NNP
brand/NN
name/NN
./.
So/RB
despite/IN
the/DT
GM-Jaguar/JJ
romance/NN
,/,
analysts/NNS
say/VBP
Ford/NNP
by/IN
last/JJ
Friday/NNP
had/VBD
boosted/VBN
its/PRP$
Jaguar/NNP
holding/NN
to/TO
about/IN
11/CD
%/NN
of/IN
the/DT
luxury/NN
auto/NN
maker/NN
's/POS
shares/NNS
outstanding/JJ
from/IN
10.4/CD
%/NN
early/RB
last/JJ
week/NN
./.
About/IN
5.4/CD
million/CD
Jaguar/NNP
shares/NNS
changed/VBD
hands/NNS
in/IN
active/JJ
trading/NN
on/IN
London/NNP
's/POS
stock/NN
exchange/NN
Friday/NNP
,/,
and/CC
Jaguar/NNP
shares/NNS
moved/VBD
up/RP
19/CD
pence/NN
to/TO
696/CD
pence/NN
$/$
11/CD
On/IN
the/DT
U.S./NNP
over-the-counter/JJ
market/NN
,/,
Jaguar/NNP
's/POS
American/JJ
depositary/NN
receipts/NNS
rose/VBD
12.5/CD
cents/NNS
to/TO
$/$
11.125/CD
./.
Joann/NNP
S./NNP
Lublin/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
The/DT
Dallas/NNP
Cowboys/NNPS
are/VBP
looking/VBG
at/IN
a/DT
long-yardage/JJ
situation/NN
,/,
struggling/VBG
to/TO
pull/VB
ahead/RB
of/IN
the/DT
Atlanta/NNP
Falcons/NNPS
./.
Up/IN
in/IN
his/PRP$
stadium/NN
box/NN
,/,
their/PRP$
new/JJ
and/CC
controversial/JJ
owner/NN
,/,
Jerral/NNP
``/``
Jerry/NNP
''/''
Jones/NNP
,/,
watches/VBZ
anxiously/RB
as/IN
the/DT
team/NN
bounds/VBZ
up/IN
to/TO
the/DT
scrimmage/NN
line/NN
./.
Mr./NNP
Jones/NNP
takes/VBZ
heart/RB
./.
There/RB
in/IN
the/DT
center/NN
of/IN
the/DT
pack/NN
is/VBZ
quarterback/NN
Troy/NNP
Aikman/NNP
,/,
the/DT
key/NN
to/TO
the/DT
Cowboys/NNPS
'/POS
comeback/NN
strategy/NN
./.
So/RB
key/JJ
,/,
in/IN
fact/NN
,/,
that/IN
Mr./NNP
Jones/NNP
signed/VBD
him/PRP
in/IN
April/NNP
for/IN
$/$
11.4/CD
million/CD
over/IN
the/DT
next/JJ
six/CD
years/NNS
--/:
a/DT
record/NN
for/IN
a/DT
rookie/NN
./.
``/``
He/PRP
's/VBZ
a/DT
genuine/JJ
Wheaties-box/JJ
athlete/NN
,/,
''/''
gushes/VBZ
Mr./NNP
Jones/NNP
./.
With/IN
three/CD
minutes/NNS
left/VBN
on/IN
the/DT
clock/NN
,/,
Mr./NNP
Aikman/NNP
takes/VBZ
the/DT
snap/NN
,/,
steps/VBZ
back/RB
and/CC
fires/VBZ
a/DT
21-yard/JJ
pass/NN
--/:
straight/RB
into/IN
the/DT
hands/NNS
of/IN
an/DT
Atlanta/NNP
defensive/JJ
back/NN
./.
The/DT
crowd/NN
groans/VBZ
,/,
Mr./NNP
Jones/NNP
shakes/VBZ
his/PRP$
head/NN
,/,
the/DT
Cowboys/NNPS
lose/VBP
the/DT
game/NN
./.
A/DT
few/JJ
days/NNS
after/IN
that/DT
Sept./NNP
17/CD
game/NN
,/,
Mr./NNP
Aikman/NNP
broke/VBD
a/DT
finger/NN
,/,
sidelining/VBG
him/PRP
for/IN
weeks/NNS
./.
Ah/UH
,/,
the/DT
glamour/NN
of/IN
professional/JJ
sports/NNS
./.
For/IN
Mr./NNP
Jones/NNP
,/,
losing/VBG
his/PRP$
quarterback/NN
temporarily/RB
was/VBD
just/RB
the/DT
latest/JJS
in/IN
a/DT
string/NN
of/IN
setbacks/NNS
that/WDT
has/VBZ
beset/VBN
the/DT
Dallas/NNP
Cowboys/NNPS
--/:
and/CC
,/,
this/DT
year/NN
,/,
much/JJ
of/IN
the/DT
National/NNP
Football/NNP
League/NNP
./.
Once/RB
fat/JJ
and/CC
happy/JJ
,/,
the/DT
Cowboys/NNPS
now/RB
are/VBP
losing/VBG
games/NNS
,/,
fans/NNS
and/CC
money/NN
./.
Last/JJ
year/NN
,/,
the/DT
team/NN
ended/VBN
up/RB
$/$
2/CD
million/CD
in/IN
the/DT
red/NN
on/IN
$/$
30/CD
million/CD
in/IN
revenue/NN
./.
It/PRP
has/VBZ
some/DT
of/IN
the/DT
highest/JJS
costs/NNS
in/IN
the/DT
league/NN
./.
Its/PRP$
attendance/NN
is/VBZ
off/IN
23/CD
%/NN
from/IN
six/CD
years/NNS
ago/RB
./.
At/IN
the/DT
very/RB
least/JJS
,/,
Mr./NNP
Jones/NNP
,/,
who/WP
cultivates/VBZ
the/DT
society/NN
circuit/NN
as/RB
eagerly/RB
as/IN
his/PRP$
bench/NN
,/,
can/MD
take/VB
comfort/NN
in/IN
one/CD
fact/NN
:/:
These/DT
days/NNS
,/,
he/PRP
is/VBZ
n't/RB
alone/RB
./.
Nearly/RB
half/PDT
the/DT
owners/NNS
of/IN
the/DT
28/CD
National/NNP
Football/NNP
League/NNP
teams/NNS
are/VBP
losing/VBG
money/NN
,/,
the/DT
result/NN
of/IN
flat/JJ
attendance/NN
,/,
aging/VBG
stadiums/NNS
and/CC
--/:
more/JJR
than/IN
anything/NN
--/:
skyrocketing/VBG
salaries/NNS
for/IN
star/NN
players/NNS
like/IN
Mr./NNP
Aikman/NNP
./.
Last/JJ
year/NN
,/,
the/DT
top/JJ
12/CD
players/NNS
on/IN
each/DT
NFL/NNP
team/NN
took/VBD
home/RB
an/DT
average/NN
$/$
536,000/CD
,/,
a/DT
figure/NN
comparable/JJ
to/TO
baseball/NN
and/CC
higher/JJR
than/IN
in/IN
basketball/NN
./.
First-round/JJ
draft/NN
picks/NNS
have/VBP
done/VBN
even/RB
better/RB
:/:
Average/JJ
salaries/NNS
and/CC
bonuses/NNS
for/IN
them/PRP
rose/VBD
to/TO
$/$
685,000/CD
this/DT
year/NN
,/,
up/RB
44/CD
%/NN
from/IN
1987/CD
./.
``/``
It/PRP
's/VBZ
a/DT
vicious/JJ
circle/NN
,/,
''/''
says/VBZ
Art/NNP
Modell/NNP
,/,
owner/NN
of/IN
the/DT
Cleveland/NNP
Browns/NNPS
./.
``/``
One/CD
team/NN
pays/VBZ
so/RB
much/JJ
and/CC
the/DT
other/JJ
pays/VBZ
more/JJR
./.
We/PRP
just/RB
do/VBP
n't/RB
have/VB
that/DT
kind/NN
of/IN
income/NN
stream/NN
./.
''/''
All/PDT
this/DT
is/VBZ
causing/VBG
convulsions/NNS
in/IN
professional/JJ
football/NN
./.
Owners/NNS
,/,
largely/RB
complacent/JJ
in/IN
the/DT
past/NN
,/,
are/VBP
now/RB
almost/RB
desperately/RB
looking/VBG
for/IN
ways/NNS
to/TO
lower/VB
costs/NNS
and/CC
raise/VB
revenue/NN
--/:
embracing/VBG
some/DT
revolutionary/JJ
ideas/NNS
in/IN
the/DT
process/NN
./.
Though/IN
not/RB
intentionally/RB
,/,
the/DT
Cowboys/NNPS
'/POS
Mr./NNP
Jones/NNP
has/VBZ
come/VBN
to/TO
represent/VB
this/DT
new/JJ
breed/NN
of/IN
owner/NN
./.
Shortly/RB
after/IN
buying/VBG
66/CD
%/NN
of/IN
the/DT
team/NN
from/IN
H.R./NNP
``/``
Bum/NNP
''/''
Bright/NNP
for/IN
$/$
145/CD
million/CD
,/,
and/CC
mindful/JJ
of/IN
the/DT
Cowboys/NNPS
'/POS
ragged/JJ
bottom/JJ
line/NN
,/,
the/DT
47-year-old/JJ
Mr./NNP
Jones/NNP
set/VBD
about/IN
his/PRP$
own/JJ
round/NN
of/IN
team/NN
cuts/NNS
./.
First/RB
,/,
he/PRP
unceremoniously/RB
sacked/VBD
Tom/NNP
Landry/NNP
,/,
the/DT
legendary/JJ
coach/NN
who/WP
took/VBD
the/DT
Cowboys/NNPS
to/TO
five/CD
Super/NNP
Bowls/NNP
and/CC
20/CD
consecutive/JJ
winning/JJ
seasons/NNS
./.
In/IN
Dallas/NNP
,/,
Mr./NNP
Landry/NNP
has/VBZ
a/DT
standing/NN
just/RB
shy/JJ
of/IN
sainthood/NN
./.
Anti-Jones/JJ
sentiment/NN
flooded/VBD
the/DT
local/JJ
press/NN
:/:
``/``
A/DT
crude/JJ
obnoxious/JJ
hick/NN
,/,
''/''
said/VBD
one/CD
writer/NN
;/:
``/``
a/DT
real/JJ
oink/UH
,/,
''/''
said/VBD
another/DT
;/:
``/``
Who/WP
in/IN
the/DT
hell/NN
does/VBZ
he/PRP
think/VB
he/PRP
is/VBZ
?/.
''/''
wrote/VBD
a/DT
third/JJ
./.
For/IN
Mr./NNP
Jones/NNP
,/,
it/PRP
was/VBD
just/RB
the/DT
beginning/NN
./.
He/PRP
quickly/RB
cut/VBD
the/DT
team/NN
's/POS
bloated/JJ
administrative/JJ
staff/NN
by/IN
half/NN
,/,
shut/VBD
down/RP
a/DT
Cowboys-owned/JJ
dance/NN
academy/NN
and/CC
,/,
in/IN
July/NNP
,/,
announced/VBD
plans/NNS
to/TO
sell/VB
Valley/NNP
Ranch/NNP
,/,
the/DT
team/NN
's/POS
30-acre/JJ
practice/NN
camp/NN
and/CC
the/DT
most/RBS
lavish/JJ
training/NN
facility/NN
in/IN
the/DT
NFL/NNP
./.
Mr./NNP
Jones/NNP
calls/VBZ
the/DT
ranch/NN
``/``
the/DT
Pentagon/NNP
of/IN
Sportdom/NN
./.
''/''
It/PRP
is/VBZ
a/DT
maze/NN
of/IN
halls/NNS
that/WDT
connects/VBZ
film/NN
rooms/NNS
,/,
elaborate/JJ
spas/NNS
and/CC
weight-training/NN
centers/NNS
that/WDT
testify/VBP
to/TO
a/DT
richer/JJR
,/,
more/RBR
free-spending/JJ
era/NN
./.
He/PRP
likes/VBZ
to/TO
tell/VB
the/DT
yarn/NN
of/IN
how/WRB
he/PRP
got/VBD
lost/VBN
on/IN
the/DT
expansive/JJ
ranch/NN
during/IN
an/DT
early/JJ
visit/NN
,/,
took/VBD
refuge/NN
in/IN
an/DT
office/NN
and/CC
called/VBD
the/DT
front/JJ
desk/NN
for/IN
help/NN
./.
``/``
I/PRP
said/VBD
,/,
`/``
Somebody/NN
come/VB
get/VB
me/PRP
./.
I/PRP
'm/VBP
at/IN
extension/NN
29/CD
./.
'/''
''/''
With/IN
a/DT
new/JJ
day/NN
dawning/VBG
on/IN
the/DT
sport/NN
,/,
Mr./NNP
Jones/NNP
does/VBZ
n't/RB
see/VB
a/DT
place/NN
for/IN
this/DT
sort/NN
of/IN
luxury/NN
./.
``/``
It/PRP
's/VBZ
just/RB
not/RB
cost/NN
efficient/JJ
,/,
''/''
he/PRP
says/VBZ
./.
The/DT
place/NN
costs/VBZ
nearly/RB
$/$
2/CD
million/CD
a/DT
year/NN
to/TO
maintain/VB
./.
When/WRB
he/PRP
sells/VBZ
it/PRP
,/,
he/PRP
says/VBZ
,/,
the/DT
Cowboys/NNPS
will/MD
move/VB
to/TO
a/DT
more/RBR
practical/JJ
--/:
read/VB
affordable/JJ
--/:
grass/NN
practice/NN
field/NN
near/IN
Texas/NNP
Stadium/NNP
./.
And/CC
as/IN
for/IN
Tom/NNP
Landry/NNP
,/,
well/UH
,/,
in/IN
Mr./NNP
Jones/NNP
's/POS
mind/NN
,/,
he/PRP
had/VBD
played/VBN
out/RP
his/PRP$
winning/VBG
years/NNS
./.
After/IN
posting/VBG
losing/JJ
seasons/NNS
in/IN
each/DT
of/IN
the/DT
last/JJ
three/CD
years/NNS
,/,
the/DT
Cowboys/NNS
needed/VBD
a/DT
change/NN
,/,
he/PRP
says/VBZ
./.
Football/NN
has/VBZ
long/RB
been/VBN
Mr./NNP
Jones/NNP
's/POS
passion/NN
,/,
both/DT
on/IN
and/CC
off/IN
the/DT
field/NN
./.
An/DT
Arkansas/NNP
native/NN
,/,
he/PRP
started/VBD
at/IN
guard/NN
on/IN
the/DT
undefeated/JJ
1964/CD
University/NNP
of/IN
Arkansas/NNP
team/NN
that/WDT
won/VBD
a/DT
national/JJ
championship/NN
./.
After/IN
college/NN
,/,
he/PRP
worked/VBD
at/IN
his/PRP$
father/NN
's/POS
insurance/NN
company/NN
in/IN
Little/NNP
Rock/NNP
,/,
and/CC
in/IN
1966/CD
led/VBD
an/DT
aborted/JJ
attempt/NN
to/TO
buy/VB
the/DT
San/NNP
Diego/NNP
Chargers/NNPS
./.
Years/NNS
later/RB
,/,
with/IN
cash/NN
from/IN
the/DT
sale/NN
of/IN
the/DT
insurance/NN
company/NN
,/,
he/PRP
founded/VBD
Arkoma/NNP
Production/NNP
Corp./NNP
,/,
an/DT
oil/NN
and/CC
gas/NN
exploration/NN
company/NN
based/VBN
in/IN
Little/NNP
Rock/NNP
./.
So/RB
it/PRP
was/VBD
n't/RB
surprising/JJ
that/IN
Mr./NNP
Jones/NNP
returned/VBD
to/TO
his/PRP$
Arkansas/NNP
roots/NNS
when/WRB
he/PRP
went/VBD
looking/VBG
for/IN
a/DT
replacement/NN
for/IN
Mr./NNP
Landry/NNP
./.
He/PRP
tapped/VBD
Jimmy/NNP
Johnson/NNP
,/,
a/DT
teammate/NN
on/IN
the/DT
1964/CD
University/NNP
of/IN
Arkansas/NNP
squad/NN
and/CC
the/DT
head/NN
coach/NN
at/IN
the/DT
University/NNP
of/IN
Miami/NNP
,/,
where/WRB
he/PRP
led/VBD
the/DT
Hurricanes/NNPS
to/TO
five/CD
winning/JJ
seasons/NNS
and/CC
a/DT
national/JJ
championship/NN
in/IN
1987/CD
./.
Whatever/WDT
Mr./NNP
Johnson/NNP
's/POS
talents/NNS
,/,
in/IN
the/DT
hearts/NNS
and/CC
minds/NNS
of/IN
many/JJ
Dallas/NNP
fans/NNS
,/,
he/PRP
is/VBZ
no/DT
Tom/NNP
Landry/NNP
./.
Seven/CD
games/NNS
a/DT
loss/NN
to/TO
the/DT
Kansas/NNP
City/NNP
Chiefs/NNPS
yesterday/NN
,/,
seven/CD
losses/NNS
the/DT
season/NN
,/,
the/DT
``/``
new/JJ
''/''
Cowboys/NNPS
are/VBP
n't/RB
doing/VBG
any/RB
better/RBR
than/IN
the/DT
old/JJ
./.
In/IN
fact/NN
,/,
the/DT
last/JJ
time/NN
they/PRP
played/VBD
this/DT
badly/RB
was/VBD
in/IN
1960/CD
,/,
their/PRP$
opening/JJ
season/NN
./.
Average/NN
attendance/NN
at/IN
their/PRP$
games/NNS
,/,
about/IN
49,000/CD
last/JJ
year/NN
,/,
continues/VBZ
flat/JJ
./.
Mr./NNP
Jones/NNP
is/VBZ
attacking/VBG
the/DT
problem/NN
on/IN
several/JJ
fronts/NNS
./.
He/PRP
continues/VBZ
to/TO
reshuffle/VB
the/DT
team/NN
,/,
trading/VBG
famed/JJ
running/VBG
back/NN
Herschel/NNP
Walker/NNP
to/TO
the/DT
Minnesota/NNP
Vikings/NNPS
this/DT
month/NN
for/IN
a/DT
slew/NN
of/IN
players/NNS
and/CC
future/JJ
draft/NN
picks/NNS
./.
To/TO
try/VB
to/TO
draw/VB
more/JJR
fans/NNS
,/,
he/PRP
has/VBZ
dropped/VBN
end-zone/NN
ticket/NN
prices/NNS
from/IN
$/$
25/CD
to/TO
$/$
19/CD
./.
But/CC
the/DT
general/JJ
trend/NN
,/,
given/VBN
rising/VBG
costs/NNS
in/IN
the/DT
league/NN
,/,
has/VBZ
been/VBN
to/TO
raise/VB
prices/NNS
,/,
and/CC
Mr./NNP
Jones/NNP
is/VBZ
expected/VBN
to/TO
eventually/RB
follow/VB
suit/NN
./.
``/``
It/PRP
's/VBZ
simple/JJ
,/,
''/''
says/VBZ
Lamar/NNP
Hunt/NNP
,/,
who/WP
owns/VBZ
the/DT
Kansas/NNP
City/NNP
Chiefs/NNPS
and/CC
last/JJ
year/NN
raised/VBD
ticket/NN
prices/NNS
by/IN
$/$
2.40/CD
to/TO
an/DT
average/JJ
$/$
17/CD
./.
``/``
If/IN
we/PRP
did/VBD
n't/RB
increase/VB
prices/NNS
,/,
we/PRP
'd/MD
be/VB
in/IN
the/DT
red/NN
./.
''/''
Mr./NNP
Jones/NNP
has/VBZ
also/RB
beefed/VBN
up/RP
his/PRP$
marketing/VBG
staff/NN
to/TO
sell/VB
the/DT
118/CD
luxury/NN
suites/NNS
topping/VBG
Texas/NNP
Stadium/NNP
his/PRP$
deal/NN
with/IN
Bum/NNP
Bright/NNP
included/VBD
operating/NN
rights/NNS
for/IN
the/DT
stadium/NN
The/DT
suites/NNS
are/VBP
air-conditioned/JJ
,/,
have/VBP
wet/JJ
bars/NNS
and/CC
plush/JJ
seating/NN
,/,
and/CC
offer/VBP
a/DT
clear/JJ
view/NN
of/IN
the/DT
field/NN
--/:
all/DT
for/IN
a/DT
sale/NN
price/NN
of/IN
$/$
475,000/CD
to/TO
$/$
1/CD
million/CD
,/,
depending/VBG
on/IN
their/PRP$
size/NN
and/CC
location/NN
./.
Mr./NNP
Jones/NNP
has/VBZ
been/VBN
taking/VBG
prospective/JJ
suite/NN
owners/NNS
onto/IN
the/DT
field/NN
during/IN
practice/NN
to/TO
let/VB
them/PRP
rub/VB
elbows/NNS
with/IN
players/NNS
,/,
and/CC
promises/VBZ
those/DT
who/WP
actually/RB
buy/VBP
one/CD
of/IN
the/DT
rooms/NNS
an/DT
insider/NN
's/POS
look/NN
at/IN
the/DT
team/NN
's/POS
strategy/NN
before/IN
game/NN
time/NN
./.
The/DT
sales/NNS
job/NN
seems/VBZ
to/TO
be/VB
paying/VBG
off/RB
:/:
When/WRB
he/PRP
bought/VBD
the/DT
team/NN
,/,
only/RB
six/CD
of/IN
the/DT
suites/NNS
had/VBD
been/VBN
sold/VBN
./.
Today/NN
,/,
30/CD
have/VBP
./.
Gate/NN
receipts/NNS
are/VBP
only/RB
the/DT
Cowboys/NNPS
'/POS
second/JJ
largest/JJS
source/NN
of/IN
cash/NN
./.
The/DT
biggest/JJS
is/VBZ
the/DT
NFL/NNP
's/POS
contract/NN
with/IN
national/JJ
television/NN
for/IN
broadcast/NN
of/IN
the/DT
league/NN
's/POS
games/NNS
./.
Last/JJ
year/NN
,/,
the/DT
Cowboys/NNP
'/POS
share/NN
of/IN
that/DT
pie/NN
came/VBD
to/TO
$/$
17.6/CD
million/CD
./.
The/DT
team/NN
additionally/RB
earns/VBZ
between/IN
$/$
2/CD
million/CD
and/CC
$/$
4/CD
million/CD
for/IN
local/JJ
radio/NN
and/CC
television/NN
broadcast/NN
rights/NNS
./.
Mr./NNP
Jones/NNP
is/VBZ
currently/RB
trying/VBG
to/TO
jack/VB
up/RP
the/DT
price/NN
for/IN
those/DT
local/JJ
rights/NNS
./.
He/PRP
is/VBZ
also/RB
trying/VBG
to/TO
get/VB
more/JJR
stations/NNS
in/IN
Mexico/NNP
,/,
where/WRB
the/DT
Cowboys/NNPS
have/VBP
a/DT
following/NN
,/,
to/TO
pick/VB
up/RP
the/DT
games/NNS
./.
Mr./NNP
Jones/NNP
,/,
whose/WP$
twangy/JJ
voice/NN
and/CC
folksy/JJ
ways/NNS
belie/VBP
an/DT
intense/JJ
businessman/NN
who/WP
works/VBZ
16-hour/JJ
days/NNS
,/,
is/VBZ
resigned/VBN
to/TO
the/DT
hefty/JJ
salaries/NNS
he/PRP
pays/VBZ
his/PRP$
players/NNS
these/DT
days/NNS
./.
He/PRP
calls/VBZ
the/DT
contracts/NNS
``/``
critical/JJ
to/TO
winning/VBG
in/IN
the/DT
NFL/NNP
''/''
and/CC
has/VBZ
played/VBN
his/PRP$
part/NN
in/IN
the/DT
bidding/NN
wars/NNS
./.
Besides/IN
signing/VBG
Mr./NNP
Aikman/NNP
to/TO
a/DT
sizable/JJ
contract/NN
,/,
Mr./NNP
Jones/NNP
has/VBZ
agreed/VBN
to/TO
pay/VB
rookie/NN
quarterback/NN
Steve/NNP
Walsh/NNP
$/$
4.1/CD
million/CD
over/IN
the/DT
next/JJ
four/CD
years/NNS
./.
This/DT
wage/NN
inflation/NN
is/VBZ
bleeding/VBG
the/DT
NFL/NNP
dry/JJ
,/,
the/DT
owners/NNS
contend/VBP
./.
Soon/RB
,/,
only/RB
large/JJ
corporations/NNS
will/MD
be/VB
able/JJ
to/TO
afford/VB
to/TO
buy/VB
and/CC
run/VB
football/NN
teams/NNS
,/,
predicts/VBZ
John/NNP
J./NNP
Veatch/NNP
Jr./NNP
,/,
an/DT
investment/NN
banker/NN
with/IN
Salomon/NNP
Brothers/NNPS
who/WP
handled/VBD
the/DT
Cowboys/NNPS
sale/NN
./.
To/TO
tackle/VB
the/DT
problem/NN
,/,
NFL/NNP
owners/NNS
have/VBP
proposed/VBN
setting/VBG
a/DT
rookie/NN
wage/NN
scale/NN
to/TO
try/VB
to/TO
rein/VB
in/IN
salaries/NNS
./.
Details/NNS
of/IN
the/DT
plan/NN
,/,
which/WDT
would/MD
go/VB
into/IN
effect/NN
in/IN
1993/CD
,/,
are/VBP
sketchy/JJ
,/,
but/CC
each/DT
player/NN
would/MD
apparently/RB
be/VB
paid/VBN
a/DT
base/JJ
salary/NN
keyed/VBN
to/TO
his/PRP$
position/NN
and/CC
ability/NN
./.
Bonuses/NNS
would/MD
be/VB
paid/VBN
based/VBN
on/IN
playing/NN
time/NN
and/CC
performance/NN
./.
The/DT
NFL/NNP
Players/NNPS
Association/NNP
,/,
meanwhile/RB
,/,
contends/VBZ
that/IN
athletes/NNS
are/VBP
paid/VBN
a/DT
wage/NN
commensurate/JJ
with/IN
their/PRP$
ability/NN
to/TO
draw/VB
fans/NNS
,/,
and/CC
that/IN
some/DT
owners/NNS
are/VBP
in/IN
financial/JJ
trouble/NN
because/IN
of/IN
poor/JJ
business/NN
management/NN
,/,
not/RB
players/NNS
'/POS
salaries/NNS
./.
The/DT
owners/NNS
are/VBP
trying/VBG
to/TO
boost/VB
profit/NN
in/IN
other/JJ
ways/NNS
,/,
too/RB
./.
Many/JJ
have/VBP
launched/VBN
promotions/NNS
to/TO
attract/VB
new/JJ
fans/NNS
and/CC
are/VBP
renegotiating/VBG
dated/JJ
stadium/NN
contracts/NNS
./.
Most/JJS
of/IN
the/DT
owners/NNS
must/MD
pay/VB
up/IN
to/TO
10/CD
%/NN
of/IN
gross/JJ
ticket/NN
sales/NNS
for/IN
leases/NNS
on/IN
stadiums/NNS
they/PRP
say/VBP
are/VBP
either/RB
too/RB
small/JJ
or/CC
too/RB
old/JJ
./.
In/IN
Chicago/NNP
,/,
for/IN
example/NN
,/,
size/NN
is/VBZ
the/DT
issue/NN
./.
``/``
We/PRP
have/VBP
the/DT
worst/JJS
lease/NN
in/IN
the/DT
NFL/NNP
,/,
''/''
contends/VBZ
Michael/NNP
B./NNP
McCaskey/NNP
,/,
the/DT
president/NN
of/IN
the/DT
Chicago/NNP
Bears/NNPS
and/CC
a/DT
grandson/NN
of/IN
George/NNP
Halas/NNP
,/,
who/WP
founded/VBD
the/DT
NFL/NNP
's/POS
predecessor/NN
organization/NN
./.
``/``
We/PRP
're/VBP
in/IN
a/DT
metro/NN
area/NN
with/IN
millions/NNS
of/IN
Bear/JJ
fans/NNS
,/,
and/CC
only/RB
a/DT
small/JJ
number/NN
can/MD
be/VB
accommodated/VBN
./.
''/''
When/WRB
the/DT
lease/NN
expires/VBZ
in/IN
1999/CD
,/,
he/PRP
says/VBZ
,/,
``/``
It/PRP
's/VBZ
got/VBN
to/TO
be/VB
changed/VBN
./.
''/''
This/DT
year/NN
,/,
the/DT
NFL/NNP
also/RB
imposed/VBD
an/DT
80-player/JJ
limit/NN
on/IN
teams/NNS
going/VBG
into/IN
training/NN
camp/NN
,/,
down/RB
from/IN
120/CD
,/,
in/IN
a/DT
move/NN
meant/VBN
to/TO
trim/VB
payroll/NN
costs/NNS
./.
And/CC
the/DT
league/NN
is/VBZ
trying/VBG
to/TO
get/VB
more/JJR
for/IN
its/PRP$
three-year/JJ
national/JJ
network/NN
contract/NN
,/,
which/WDT
expires/VBZ
after/IN
this/DT
season/NN
./.
The/DT
current/JJ
contract/NN
pays/VBZ
the/DT
NFL/NNP
$/$
1.4/CD
billion/CD
./.
Owners/NNS
say/VBP
they/PRP
expect/VBP
the/DT
league/NN
to/TO
demand/VB
a/DT
50/CD
%/NN
increase/NN
,/,
despite/IN
the/DT
fact/NN
that/WDT
televised/JJ
football/NN
games/NNS
have/VBP
had/VBN
lackluster/JJ
ratings/NNS
./.
An/DT
NFL/NNP
spokesman/NN
also/RB
says/VBZ
the/DT
league/NN
will/MD
probably/RB
expand/VB
its/PRP$
offerings/NNS
to/TO
cable/NN
TV/NN
companies/NNS
like/IN
ESPN/NNP
./.
The/DT
changes/NNS
have/VBP
n't/RB
come/VBN
easy/RB
./.
Like/IN
the/DT
game/NN
of/IN
professional/JJ
football/NN
,/,
the/DT
NFL/NNP
organization/NN
itself/PRP
is/VBZ
in/IN
turmoil/NN
./.
The/DT
new/JJ
breed/NN
of/IN
team/NN
owner/NN
,/,
Mr./NNP
Jones/NNP
included/JJ
,/,
has/VBZ
been/VBN
fighting/VBG
the/DT
NFL/NNP
bureaucracy/NN
for/IN
a/DT
greater/JJR
say/NN
in/IN
league/NN
affairs/NNS
,/,
and/CC
the/DT
battle/NN
has/VBZ
produced/VBN
a/DT
form/NN
of/IN
organizational/JJ
gridlock/NN
./.
In/IN
July/NNP
,/,
11/CD
NFL/NNP
owners/NNS
,/,
almost/RB
all/DT
of/IN
them/PRP
new/JJ
,/,
blocked/VBD
an/DT
effort/NN
to/TO
install/VB
Jim/NNP
Finks/NNP
as/IN
a/DT
replacement/NN
for/IN
retiring/VBG
league/NN
commissioner/NN
Pete/NNP
Rozelle/NNP
./.
Mr./NNP
Finks/NNP
is/VBZ
perceived/VBN
by/IN
some/DT
owners/NNS
as/IN
a/DT
standard-bearer/NN
for/IN
the/DT
Old/JJ
Guard/NN
./.
Earlier/RBR
this/DT
month/NN
,/,
another/DT
effort/NN
to/TO
choose/VB
a/DT
commissioner/NN
failed/VBD
./.
The/DT
owners/NNS
meet/VBP
again/RB
tomorrow/NN
./.
For/IN
his/PRP$
part/NN
,/,
Jerry/NNP
Jones/NNP
says/VBZ
he/PRP
's/VBZ
in/IN
the/DT
business/NN
for/IN
the/DT
long/JJ
haul/NN
,/,
and/CC
his/PRP$
work/NN
style/NN
seems/VBZ
to/TO
support/VB
that/DT
./.
He/PRP
puts/VBZ
in/IN
busy/JJ
six-day/JJ
weeks/NNS
game/NN
days/NNS
one/CD
recent/JJ
afternoon/NN
fielded/VBD
questions/NNS
,/,
in/IN
the/DT
course/NN
of/IN
an/DT
hour/NN
,/,
from/IN
a/DT
TV/NN
producer/NN
,/,
his/PRP$
luxury-suite/NN
marketing/VBG
manager/NN
,/,
a/DT
disgruntled/JJ
customer/NN
and/CC
a/DT
roomful/NN
of/IN
Arkansas/NNP
reporters/NNS
./.
To/TO
keep/VB
his/PRP$
schedule/NN
on/IN
track/NN
,/,
he/PRP
flies/VBZ
two/CD
personal/JJ
secretaries/NNS
in/IN
from/IN
Little/NNP
Rock/NNP
to/TO
augment/VB
his/PRP$
staff/NN
in/IN
Dallas/NNP
./.
``/``
When/WRB
I/PRP
made/VBD
this/DT
investment/NN
,/,
I/PRP
made/VBD
it/PRP
on/IN
a/DT
lifetime/NN
basis/NN
,/,
''/''
he/PRP
explains/VBZ
./.
``/``
I/PRP
'm/VBP
not/RB
here/RB
to/TO
make/VB
money/NN
by/IN
reselling/VBG
the/DT
team/NN
later/RB
on/RB
./.
While/IN
the/DT
Cowboys/NNPS
may/MD
not/RB
be/VB
the/DT
best/JJS
investment/NN
now/RB
,/,
I/PRP
do/VBP
n't/RB
accept/VB
they/PRP
ca/MD
n't/RB
be/VB
in/IN
the/DT
future/NN
./.
''/''
Besides/IN
,/,
to/TO
a/DT
large/JJ
extent/NN
,/,
Mr./NNP
Jones/NNP
may/MD
already/RB
be/VB
getting/VBG
what/WP
he/PRP
wants/VBZ
out/IN
of/IN
the/DT
team/NN
,/,
even/RB
though/IN
it/PRP
keeps/VBZ
losing/VBG
./.
Owning/VBG
the/DT
Cowboys/NNPS
has/VBZ
bought/VBN
him/PRP
entree/FW
to/TO
a/DT
glitzy/JJ
life/NN
that/IN
drilling/VBG
for/IN
oil/NN
in/IN
Arkansas/NNP
just/RB
did/VBD
n't/RB
provide/VB
./.
There/EX
is/VBZ
the/DT
new/JJ
private/JJ
jet/NN
,/,
the/DT
platoon/NN
of/IN
assistants/NNS
,/,
invitations/NNS
to/TO
the/DT
best/JJS
parties/NNS
,/,
and/CC
television/NN
appearances/NNS
on/IN
shows/NNS
such/JJ
as/IN
``/``
Prime/JJ
Time/NN
Live/JJ
./.
''/''
A/DT
few/JJ
weeks/NNS
ago/RB
,/,
Mr./NNP
Jones/NNP
even/RB
entertained/VBD
Elizabeth/NNP
Taylor/NNP
in/IN
his/PRP$
private/JJ
suite/NN
at/IN
Texas/NNP
Stadium/NNP
./.
``/``
You/PRP
're/VBP
in/IN
the/DT
catbird/JJ
seat/NN
every/DT
day/NN
in/IN
this/DT
job/NN
,/,
''/''
he/PRP
says/VBZ
./.
How/WRB
interestingly/RB
clever/JJ
of/IN
Robert/NNP
Goldberg/NNP
to/TO
use/VB
the/DT
form/NN
of/IN
pretend/JJ
advocacy/NN
journalism/NN
to/TO
explain/VB
his/PRP$
perception/NN
of/IN
``/``
Days/NNS
of/IN
Rage/NN
''/''
in/IN
his/PRP$
television/NN
critique/NN
Leisure/NN
&/CC
Arts/NNS
,/,
Sept/NNP
11/CD
He/PRP
chastises/VBZ
Jo/NNP
Franklin-Trout/NNP
for/IN
her/PRP$
inept/JJ
presentation/NN
of/IN
advocacy/NN
journalism/NN
,/,
judging/VBG
her/PRP$
project/NN
as/IN
``/``
intellectually/RB
slipshod/JJ
./.
''/''
Was/VBD
not/RB
the/DT
title/NN
very/RB
clear/JJ
?/.
One/CD
example/NN
he/PRP
gives/VBZ
:/:
``/``
She/PRP
did/VBD
n't/RB
ask/VB
''/''
(/(
why/WRB
the/DT
Palestinian/JJ
children/NNS
are/VBP
soldiers/NNS
throwing/VBG
stones/NNS
Really/RB
now/RB
,/,
did/VBD
she/PRP
have/VB
to/TO
ask/VB
?/.
Were/VBD
not/RB
the/DT
pictures/NNS
and/CC
happenings/NNS
,/,
which/WDT
have/VBP
been/VBN
continuing/VBG
news/NN
headlines/NNS
,/,
answers/NNS
enough/JJ
?/.
Mr./NNP
Goldberg/NNP
contends/VBZ
that/IN
even/RB
as/IN
``/``
propaganda/NN
''/''
the/DT
film/NN
fails/VBZ
because/IN
it/PRP
presents/VBZ
only/RB
one/CD
view/NN
./.
Of/IN
course/NN
the/DT
Palestinians/NNPS
complain/VBP
about/IN
their/PRP$
treatment/NN
;/:
of/IN
course/NN
the/DT
Israelis/NNPS
feel/VBP
put/VBN
upon/RP
./.
But/CC
his/PRP$
complaint/NN
that/IN
``/``
Days/NNS
of/IN
Rage/NN
''/''
does/VBZ
n't/RB
contain/VB
balanced/JJ
comments/NNS
from/IN
Israelis/NNPS
about/IN
how/WRB
badly/RB
the/DT
Palestinians/NNPS
are/VBP
behaving/VBG
is/VBZ
irrelevant/JJ
./.
It/PRP
's/VBZ
like/IN
doing/VBG
a/DT
documentary/NN
on/IN
apartheid/NN
and/CC
insisting/VBG
that/DT
equal/JJ
time/NN
be/VB
given/VBN
to/TO
how/WRB
terrific/JJ
white/JJ
South/NNPS
Africans/NNPS
are/VBP
./.
This/DT
film/NN
did/VBD
emphasize/VB
how/WRB
long/JJ
the/DT
Israeli\/Palestinian/JJ
stalemate/NN
has/VBZ
existed/VBN
by/IN
tracing/VBG
the/DT
conflict/NN
to/TO
the/DT
days/NNS
of/IN
World/NNP
War/NNP
I/PRP
when/WRB
the/DT
British/NNPS
tried/VBD
to/TO
guarantee/VB
both/DT
a/DT
Jewish/JJ
state/NN
and/CC
a/DT
Palestinian/JJ
state/NN
without/IN
specifying/VBG
how/WRB
it/PRP
was/VBD
to/TO
be/VB
done/VBN
./.
Well/UH
,/,
``/``
Days/NNS
of/IN
Rage/NN
''/''
airing/VBG
with/IN
before-and-after/JJ
packaging/NN
,/,
and/CC
after/IN
repeated/JJ
delays/NNS
,/,
was/VBD
a/DT
beginning/NN
./.
Every/DT
issue/NN
is/VBZ
multisided/JJ
./.
This/DT
film/NN
attempts/VBZ
to/TO
show/VB
a/DT
side/NN
rarely/RB
seen/VBN
in/IN
our/PRP$
media/NNS
./.
Now/RB
we/PRP
must/MD
endure/VB
a/DT
rash/NN
of/IN
critics/NNS
who/WP
apparently/RB
wish/VBP
to/TO
know/VB
details/NNS
of/IN
one/CD
side/NN
only/RB
./.
Salaam/FW
./.
Shalom/FW
./.
Charlotte/NNP
Carpenter/NNP
Bainbridge/NNP
Island/NNP
,/,
Wash/NNP
./.
President/NNP
Bush/NNP
wants/VBZ
the/DT
Pentagon/NNP
to/TO
get/VB
special/JJ
treatment/NN
in/IN
coping/VBG
with/IN
the/DT
across-the-board/JJ
spending/NN
cuts/NNS
that/WDT
took/VBD
effect/NN
last/JJ
week/NN
./.
Mr./NNP
Bush/NNP
asked/VBD
Congress/NNP
to/TO
raise/VB
to/TO
$/$
6/CD
billion/CD
from/IN
$/$
3/CD
billion/CD
the/DT
amount/NN
of/IN
money/NN
Defense/NNP
Secretary/NNP
Dick/NNP
Cheney/NNP
may/MD
shift/VB
among/IN
the/DT
Pentagon/NNP
's/POS
individual/JJ
programs/NNS
,/,
projects/NNS
and/CC
activities/NNS
,/,
allowing/VBG
him/PRP
to/TO
ease/VB
the/DT
pain/NN
that/IN
the/DT
Gramm-Rudman/NNP
budget/NN
law/NN
was/VBD
intended/VBN
to/TO
inflict/VB
./.
If/IN
the/DT
request/NN
is/VBZ
approved/VBN
by/IN
both/DT
the/DT
House/NNP
and/CC
Senate/NNP
,/,
Mr./NNP
Cheney/NNP
would/MD
need/VB
only/JJ
permission/NN
from/IN
the/DT
White/NNP
House/NNP
Office/NNP
of/IN
Management/NNP
and/CC
Budget/NNP
to/TO
move/VB
the/DT
money/NN
,/,
according/VBG
to/TO
Senate/NNP
budget/NN
analysts/NNS
./.
That/DT
would/MD
give/VB
the/DT
Pentagon/NNP
flexibility/NN
that/IN
no/DT
other/JJ
federal/JJ
agency/NN
has/VBZ
./.
``/``
It/PRP
's/VBZ
simply/RB
a/DT
way/NN
of/IN
making/VBG
the/DT
cuts/NNS
less/RBR
onerous/JJ
for/IN
defense/NN
than/IN
they/PRP
are/VBP
for/IN
domestic/JJ
programs/NNS
,/,
''/''
said/VBD
Chairman/NNP
James/NNP
Sasser/NNP
D./NNP
,/,
Tenn/NNP
./.
the/DT
Senate/NNP
Budget/NNP
Committee/NNP
,/,
who/WP
said/VBD
he/PRP
would/MD
oppose/VB
the/DT
request/NN
./.
``/``
That/DT
is/VBZ
n't/RB
consistent/JJ
with/IN
the/DT
kind/NN
of/IN
discipline/NN
that/IN
Gramm-Rudman/NNP
is/VBZ
supposed/VBN
to/TO
impose/VB
,/,
''/''
he/PRP
said/VBD
./.
The/DT
president/NN
's/POS
request/NN
did/VBD
n't/RB
indicate/VB
how/WRB
Mr./NNP
Cheney/NNP
would/MD
shift/VB
the/DT
money/NN
./.
A/DT
Pentagon/NNP
official/NN
said/VBD
the/DT
request/NN
was/VBD
made/VBN
to/TO
give/VB
the/DT
department/NN
``/``
maximum/JJ
flexibility/NN
''/''
to/TO
deal/VB
with/IN
the/DT
cuts/NNS
./.
Last/JJ
week/NN
,/,
Budget/NNP
Director/NNP
Richard/NNP
Darman/NNP
structured/VBD
the/DT
$/$
16.1/CD
billion/CD
spending/NN
reduction/NN
,/,
half/NN
of/IN
which/WDT
must/MD
come/VB
from/IN
defense/NN
,/,
to/TO
``/``
impose/VB
a/DT
little/JJ
bit/NN
more/JJR
discipline/NN
''/''
by/IN
applying/VBG
cuts/NNS
to/TO
each/DT
individual/JJ
program/NN
,/,
project/NN
or/CC
activity/NN
in/IN
the/DT
budget/NN
./.
That/DT
would/MD
give/VB
agencies/NNS
``/``
less/JJR
ability/NN
.../:
to/TO
fudge/VB
over/RP
things/NNS
,/,
''/''
he/PRP
told/VBD
reporters/NNS
./.
Under/IN
the/DT
deficit-reduction/NN
law/NN
,/,
4.3/CD
%/NN
of/IN
the/DT
Pentagon/NNP
's/POS
money/NN
and/CC
5.3/CD
%/NN
of/IN
other/JJ
agencies/NNS
'/POS
money/NN
has/VBZ
been/VBN
canceled/VBN
./.
Lawmakers/NNS
are/VBP
expected/VBN
to/TO
try/VB
to/TO
restore/VB
the/DT
funds/NNS
once/IN
a/DT
pending/VBG
deficit-cutting/NN
measure/NN
has/VBZ
been/VBN
signed/VBN
into/IN
law/NN
./.
Rochester/NNP
Telephone/NNP
Corp./NNP
said/VBD
it/PRP
completed/VBD
its/PRP$
purchase/NN
of/IN
Urban/NNP
Telephone/NNP
Corp./NNP
,/,
of/IN
Clintonville/NNP
,/,
Wis./NNP
,/,
the/DT
second-largest/JJ
unaffiliated/JJ
independent/JJ
telephone/NN
company/NN
in/IN
that/DT
state/NN
./.
Rochester/NNP
Telephone/NNP
said/VBD
the/DT
acquisition/NN
was/VBD
made/VBN
in/IN
an/DT
exchange/NN
of/IN
its/PRP$
common/JJ
shares/NNS
for/IN
all/PDT
the/DT
shares/NNS
of/IN
Urban/NNP
Telephone/NNP
,/,
but/CC
a/DT
price/NN
was/VBD
n't/RB
disclosed/VBN
./.
Urban/NNP
is/VBZ
the/DT
company/NN
's/POS
first/JJ
telephone/NN
subsidiary/NN
in/IN
Wisconsin/NNP
./.
Since/IN
June/NNP
,/,
Rochester/NNP
Telephone/NNP
signed/VBD
letters/NNS
of/IN
intent/NN
to/TO
purchase/VB
three/CD
other/JJ
Wisconsin/NNP
firms/NNS
./.
A/DT
bill/NN
that/WDT
would/MD
permit/VB
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
to/TO
monitor/VB
the/DT
financial/JJ
condition/NN
of/IN
securities/NNS
firms/NNS
'/POS
holding/VBG
companies/NNS
is/VBZ
facing/VBG
tough/JJ
opposition/NN
from/IN
some/DT
Wall/NNP
Street/NNP
firms/NNS
,/,
which/WDT
argue/VBP
that/IN
the/DT
legislation/NN
is/VBZ
unnecessary/JJ
./.
The/DT
legislation/NN
and/CC
other/JJ
issues/NNS
related/VBN
to/TO
the/DT
stock/NN
market/NN
will/MD
be/VB
the/DT
focus/NN
of/IN
hearings/NNS
this/DT
week/NN
by/IN
the/DT
House/NNP
Telecommunications/NNPS
and/CC
Finance/NNP
Subcommittee/NNP
and/CC
the/DT
Senate/NNP
Securities/NNPS
Subcommittee/NNP
./.
Richard/NNP
Breeden/NNP
,/,
the/DT
new/JJ
chairman/NN
of/IN
the/DT
SEC/NNP
,/,
has/VBZ
n't/RB
taken/VBN
a/DT
formal/JJ
position/NN
on/IN
the/DT
bill/NN
,/,
which/WDT
would/MD
also/RB
require/VB
investors/NNS
to/TO
disclose/VB
large/JJ
trades/NNS
and/CC
give/VB
the/DT
SEC/NNP
additional/JJ
authority/NN
during/IN
market/NN
emergencies/NNS
./.
However/RB
,/,
he/PRP
recently/RB
told/VBD
the/DT
Senate/NNP
Banking/NNP
Committee/NNP
that/IN
he/PRP
believes/VBZ
the/DT
agency/NN
should/MD
have/VB
explicit/JJ
authority/NN
to/TO
monitor/VB
debt/NN
levels/NNS
at/IN
holding/VBG
companies/NNS
and/CC
affiliates/NNS
of/IN
broker-dealers/NNS
,/,
which/WDT
are/VBP
frequently/RB
used/VBN
to/TO
issue/VB
bridge/JJ
loans/NNS
./.
The/DT
bridge/JJ
loans/NNS
are/VBP
intended/JJ
to/TO
provide/VB
temporary/JJ
financing/NN
for/IN
acquisitions/NNS
./.
Since/IN
such/JJ
loans/NNS
are/VBP
often/RB
refinanced/VBN
through/IN
the/DT
sale/NN
of/IN
high-risk/JJ
,/,
high-yield/JJ
junk/NN
bonds/NNS
,/,
the/DT
recent/JJ
woes/NNS
of/IN
the/DT
junk-bond/NN
market/NN
have/VBP
renewed/VBN
concerns/NNS
among/IN
regulators/NNS
about/IN
the/DT
risks/NNS
associated/VBN
with/IN
Wall/NNP
Street/NNP
firms/NNS
issuing/VBG
bridge/JJ
loans/NNS
./.
But/CC
some/DT
Wall/NNP
Street/NNP
executives/NNS
argue/VBP
that/IN
such/JJ
fears/NNS
are/VBP
unwarranted/JJ
./.
In/IN
a/DT
July/NNP
6/CD
letter/NN
to/TO
the/DT
Senate/NNP
Securities/NNPS
Subcommittee/NNP
,/,
First/NNP
Boston/NNP
Corp./NNP
argued/VBD
that/IN
the/DT
fact/NN
that/IN
no/DT
retail/JJ
brokerage/NN
firm/NN
failed/VBN
during/IN
the/DT
1987/CD
market/NN
crash/NN
demonstrates/VBZ
that/IN
current/JJ
rules/NNS
are/VBP
adequate/JJ
./.
First/NNP
Boston/NNP
,/,
whose/WP$
holding/VBG
company/NN
,/,
CS/NNP
First/NNP
Boston/NNP
Group/NNP
,/,
is/VBZ
one/CD
of/IN
the/DT
larger/JJR
issuers/NNS
of/IN
bridge/JJ
loans/NNS
on/IN
Wall/NNP
Street/NNP
,/,
said/VBD
it/PRP
is/VBZ
also/RB
concerned/JJ
that/IN
once/IN
the/DT
SEC/NNP
has/VBZ
the/DT
power/NN
to/TO
monitor/VB
holding/VBG
companies/NNS
,/,
it/PRP
will/MD
try/VB
to/TO
regulate/VB
their/PRP$
activities/NNS
./.
``/``
The/DT
proposal/NN
,/,
while/IN
well-intended/JJ
,/,
I/PRP
think/VBP
can/MD
be/VB
dangerously/RB
misleading/JJ
because/IN
the/DT
likely/JJ
consequence/NN
would/MD
be/VB
to/TO
weaken/VB
,/,
rather/RB
than/IN
strengthen/VB
the/DT
control/NN
the/DT
SEC/NNP
has/VBZ
exercised/VBN
for/IN
50/CD
years/NNS
over/IN
the/DT
financial/JJ
adequacy/NN
and/CC
viability/NN
of/IN
broker-dealers/NNS
,/,
''/''
Michael/NNP
Raoul-Duval/NNP
,/,
managing/VBG
director/NN
of/IN
First/NNP
Boston/NNP
,/,
said/VBD
in/IN
an/DT
interview/NN
./.
The/DT
bill/NN
would/MD
``/``
divert/VB
scarce/JJ
resources/NNS
of/IN
the/DT
commission/NN
away/RB
from/IN
broker-dealers/NNS
into/IN
areas/NNS
which/WDT
simply/RB
have/VBP
no/DT
way/NN
of/IN
affecting/VBG
broker-dealers/NNS
,/,
''/''
Mr./NNP
Raoul-Duval/NNP
said/VBD
./.
Sources/NNS
in/IN
the/DT
industry/NN
and/CC
on/IN
Capitol/NNP
Hill/NNP
say/VBP
a/DT
compromise/NN
that/WDT
would/MD
placate/VB
the/DT
industry/NN
while/IN
addressing/VBG
the/DT
SEC/NNP
's/POS
concerns/NNS
may/MD
be/VB
possible/JJ
./.
An/DT
aide/NN
to/TO
the/DT
Senate/NNP
Securities/NNPS
Subcommittee/NNP
says/VBZ
some/DT
legislators/NNS
support/VBP
the/DT
concept/NN
of/IN
risk/NN
disclosure/NN
,/,
but/CC
adds/VBZ
:/:
``/``
nobody/NN
is/VBZ
wedded/VBN
to/TO
the/DT
language/NN
in/IN
the/DT
bill/NN
./.
''/''
Edward/NNP
O'Brien/NNP
,/,
president/NN
of/IN
the/DT
Securities/NNPS
Industry/NNP
Association/NNP
,/,
said/VBD
that/IN
the/DT
securities-industry/NN
trade/NN
group/NN
opposes/VBZ
the/DT
bill/NN
as/IN
it/PRP
is/VBZ
written/VBN
but/CC
that/IN
it/PRP
is/VBZ
``/``
hopeful/JJ
a/DT
compromise/NN
can/MD
be/VB
reached/VBN
to/TO
achieve/VB
the/DT
SEC/NNP
's/POS
goals/NNS
./.
''/''
Mr./NNP
O'Brien/NNP
will/MD
elaborate/VB
on/IN
the/DT
SIA/NNP
's/POS
position/NN
in/IN
testimony/NN
before/IN
the/DT
House/NNP
Telecommunications/NNPS
and/CC
Finance/NNP
Subcommittee/NNP
this/DT
week/NN
,/,
a/DT
spokesman/NN
said/VBD
./.
This/DT
letter/NN
was/VBD
inspired/VBN
by/IN
David/NNP
Asman/NNP
's/POS
Sept./NNP
25/CD
editorial-page/JJ
article/NN
about/IN
Fidel/NNP
Castro/NNP
,/,
``/``
Man/NN
in/IN
the/DT
Middle/NN
of/IN
Drug/NN
Trafficking/NN
./.
''/''
I/PRP
've/VBP
organized/VBN
a/DT
series/NN
of/IN
exchanges/NNS
,/,
exhibitions/NNS
and/CC
other/JJ
continuing/VBG
projects/NNS
between/IN
Cuban/JJ
and/CC
American/JJ
artists/NNS
./.
In/IN
any/DT
matters/NNS
between/IN
us/PRP
and/CC
the/DT
Cubans/NNPS
there/EX
can/MD
be/VB
no/DT
simplicity/NN
,/,
consequently/RB
I/PRP
've/VBP
become/VBN
familiar/JJ
not/RB
only/RB
with/IN
Cuban/JJ
art/NN
and/CC
artists/NNS
,/,
but/CC
also/RB
with/IN
Cuban/JJ
bureaucrats/NNS
and/CC
their/PRP$
counterparts/NNS
in/IN
our/PRP$
own/JJ
government/NN
./.
Despite/IN
levels/NNS
of/IN
obstruction/NN
,/,
incompetence/NN
and/CC
ensuing/VBG
frustration/NN
of/IN
mythic/JJ
proportion/NN
,/,
these/DT
projects/NNS
all/DT
remain/VBP
,/,
in/IN
my/PRP$
mind/NN
,/,
valuable/JJ
and/CC
well/RB
worth/JJ
the/DT
effort/NN
./.
There/EX
is/VBZ
a/DT
simple/JJ
reason/NN
for/IN
this/DT
:/:
the/DT
Cuban/NNP
people/NNS
./.
Let/VB
me/PRP
immediately/RB
put/VB
limits/NNS
to/TO
whatever/WDT
nostalgic/JJ
notions/NNS
that/WDT
may/MD
intimate/VB
./.
Those/DT
``/``
people/NNS
''/''
to/TO
whom/WP
I/PRP
refer/VBP
are/VBP
not/RB
some/DT
heroic/JJ
,/,
indecipherable/JJ
quantity/NN
;/:
they/PRP
are/VBP
artists/NNS
,/,
critics/NNS
,/,
taxi/NN
drivers/NNS
,/,
grandmothers/NNS
,/,
even/RB
some/DT
employees/NNS
of/IN
the/DT
Ministry/NNP
of/IN
Culture/NNP
,/,
all/DT
of/IN
whom/WP
share/VBP
a/DT
deep/JJ
belief/NN
in/IN
the/DT
original/JJ
principles/NNS
of/IN
the/DT
Cuban/NNP
Revolution/NNP
,/,
spelled/VBN
out/RB
in/IN
terms/NNS
such/JJ
as/IN
equality/NN
among/IN
all/DT
members/NNS
of/IN
the/DT
society/NN
,/,
reverence/NN
for/IN
education/NN
and/CC
creative/JJ
expression/NN
,/,
universal/JJ
rights/NNS
to/TO
health/NN
and/CC
livelihood/NN
,/,
housing/NN
,/,
etc/FW
./.
In/IN
fact/NN
,/,
the/DT
generation/NN
of/IN
painters/NNS
growing/VBG
into/IN
maturity/NN
right/RB
now/RB
works/VBZ
with/IN
such/JJ
profoundly/RB
held/JJ
humanist/JJ
assumptions/NNS
and/CC
such/JJ
passionate/JJ
commitment/NN
to/TO
moral/JJ
and/CC
ethical/JJ
principles/NNS
that/IN
it/PRP
makes/VBZ
Che/NNP
Guevara/NNP
's/POS
famous/JJ
linkages/NNS
of/IN
art/NN
,/,
idealism/NN
and/CC
revolution/NN
seem/VBP
modest/JJ
./.
It/PRP
is/VBZ
on/IN
behalf/NN
of/IN
these/DT
people/NNS
,/,
and/CC
out/IN
of/IN
my/PRP$
real/JJ
respect/NN
for/IN
them/PRP
,/,
that/IN
I/PRP
am/VBP
responding/VBG
to/TO
Mr./NNP
Asman/NNP
's/POS
opinions/NNS
of/IN
their/PRP$
country/NN
./.
The/DT
Ochoa/NNP
trial/NN
in/IN
July/NNP
,/,
with/IN
its/PRP$
revelations/NNS
of/IN
deeply/RB
rooted/JJ
and/CC
widespread/JJ
corruption/NN
,/,
and/CC
the/DT
summary/NN
trial/NN
and/CC
execution/NN
,/,
was/VBD
extremely/RB
disturbing/JJ
to/TO
everyone/NN
who/WP
has/VBZ
ever/RB
considered/VBN
himself/PRP
a/DT
friend/NN
of/IN
Cuba/NNP
./.
However/RB
,/,
unacceptable/JJ
though/IN
those/DT
occurrences/NNS
may/MD
have/VB
been/VBN
,/,
they/PRP
still/RB
provide/VBP
no/DT
excuse/NN
for/IN
wholesale/JJ
departures/NNS
from/IN
truth/NN
./.
Mr./NNP
Asman/NNP
should/MD
make/VB
distinctions/NNS
among/IN
Fidel/NNP
,/,
the/DT
army/NN
and/CC
the/DT
Cuban/JJ
people/NNS
./.
They/PRP
are/VBP
not/RB
interchangeable/JJ
,/,
since/IN
they/PRP
are/VBP
motivated/VBN
to/TO
act/VB
based/VBN
on/IN
their/PRP$
own/JJ
circumstances/NNS
./.
It/PRP
is/VBZ
naivete/NN
to/TO
equate/VB
a/DT
government/NN
's/POS
policies/NNS
with/IN
the/DT
will/NN
of/IN
the/DT
people/NNS
we/PRP
well/RB
know/VBP
)/)
,/,
and/CC
it/PRP
is/VBZ
even/RB
worse/JJR
folly/NN
to/TO
merge/VB
the/DT
clearly/RB
divergent/JJ
agendas/NNS
of/IN
Fidel/NNP
and/CC
the/DT
military/NN
and/CC
the/DT
state/NN
bureaucracy/NN
./.
Mr./NNP
Asman/NNP
is/VBZ
also/RB
annoyed/JJ
that/IN
Mr./NNP
Castro/NNP
has/VBZ
resisted/VBN
collaboration/NN
with/IN
U.S./NNP
officials/NNS
,/,
even/RB
though/IN
by/IN
his/PRP$
own/JJ
account/NN
that/DT
collaboration/NN
has/VBZ
been/VBN
devised/VBN
essentially/RB
as/IN
a/DT
mechanism/NN
for/IN
acts/NNS
directly/RB
hostile/JJ
to/TO
the/DT
Cuban/JJ
regime/NN
,/,
such/JJ
as/IN
facilitating/VBG
defections/NNS
./.
I/PRP
think/VBP
it/PRP
's/VBZ
a/DT
little/RB
disingenuous/JJ
to/TO
be/VB
surprised/JJ
that/IN
Fidel/NNP
does/VBZ
n't/RB
invite/VB
the/DT
U.S./NNP
State/NNP
Department/NNP
to/TO
violate/VB
the/DT
jurisdiction/NN
of/IN
the/DT
Cuban/JJ
government/NN
over/IN
its/PRP$
own/JJ
territory/NN
./.
We/PRP
badly/RB
need/VBP
to/TO
follow/VB
fact/NN
rather/RB
than/IN
the/DT
rhetoric/NN
of/IN
conventional/JJ
wisdom/NN
./.
Without/IN
this/DT
basic/JJ
level/NN
of/IN
attention/NN
to/TO
reality/NN
,/,
our/PRP$
policies/NNS
on/IN
Cuba/NNP
will/MD
continue/VB
to/TO
be/VB
as/RB
counterproductive/JJ
as/IN
they/PRP
have/VBP
for/IN
30/CD
years/NNS
./.
From/IN
my/PRP$
own/JJ
point/NN
of/IN
view/NN
,/,
given/VBN
the/DT
qualities/NNS
of/IN
humanity/NN
,/,
creativity/NN
and/CC
warm/JJ
spirit/NN
in/IN
which/WDT
the/DT
Cuban/JJ
people/NNS
excel/VBP
,/,
we/PRP
deny/VBP
ourselves/PRP
access/NN
to/TO
things/NNS
we/PRP
hold/VBP
dear/RB
,/,
and/CC
which/WDT
seem/VBP
to/TO
run/VB
in/IN
such/JJ
short/JJ
supply/NN
these/DT
days/NNS
./.
There/EX
is/VBZ
no/DT
rational/JJ
justification/NN
for/IN
such/JJ
behavior/NN
./.
Rachel/NNP
Weiss/NNP
Brookline/NNP
,/,
Mass/NNP
./.
ENGRAPH/NNP
INC./NNP
recently/RB
reported/VBD
third-quarter/JJ
earnings/NNS
,/,
which/WDT
were/VBD
mistakenly/RB
shown/VBN
in/IN
the/DT
Quarterly/JJ
Earnings/NNS
Surprises/NNS
table/NN
in/IN
last/JJ
Tuesday/NNP
's/POS
edition/NN
to/TO
be/VB
lower/JJR
than/IN
the/DT
average/NN
of/IN
analysts/NNS
'/POS
estimates/NNS
./.
Zacks/NNP
Investment/NNP
Research/NNP
did/VBD
n't/RB
adjust/VB
one/CD
analyst/NN
's/POS
estimate/NN
for/IN
a/DT
stock/NN
split/NN
,/,
which/WDT
therefore/RB
was/VBD
artificially/RB
high/JJ
./.
Engraph/NNP
's/POS
third-quarter/JJ
net/JJ
income/NN
of/IN
15/CD
cents/NNS
a/DT
share/NN
actually/RB
was/VBD
7/CD
%/NN
higher/JJR
than/IN
the/DT
adjusted/JJ
average/NN
of/IN
estimates/NNS
./.
Quarterly/JJ
Earnings/NNS
Surprises/NNS
''/''
--/:
WSJ/NNP
Oct./NNP
17/CD
,/,
1989/CD
)/)
Investors/NNS
bailed/VBD
out/RB
of/IN
New/NNP
York/NNP
City/NNP
bonds/NNS
in/IN
droves/NNS
last/JJ
week/NN
,/,
driving/VBG
prices/NNS
lower/RBR
and/CC
boosting/VBG
yields/NNS
./.
One/CD
bond/NN
trader/NN
estimated/VBD
that/IN
more/JJR
than/IN
$/$
50/CD
million/CD
of/IN
New/NNP
York/NNP
City/NNP
general/JJ
obligation/NN
bonds/NNS
were/VBD
put/VBN
up/IN
for/IN
sale/NN
Friday/NNP
alone/RB
./.
While/IN
that/DT
represents/VBZ
a/DT
small/JJ
percentage/NN
of/IN
the/DT
city/NN
's/POS
public/JJ
debt/NN
outstanding/JJ
,/,
Friday/NNP
's/POS
selling/NN
followed/VBD
a/DT
weeklong/JJ
effort/NN
to/TO
unload/VB
the/DT
bonds/NNS
by/IN
a/DT
broad/JJ
spectrum/NN
of/IN
institutional/JJ
and/CC
individual/JJ
investors/NNS
./.
``/``
I/PRP
've/VBP
never/RB
seen/VBN
so/IN
many/JJ
New/NNP
York/NNP
City/NNP
G.O./NNP
's/NNS
up/IN
for/IN
sale/NN
,/,
''/''
said/VBD
another/DT
trader/NN
./.
``/``
Every/DT
broker/NN
has/VBZ
blocks/NNS
of/IN
every/DT
size/NN
and/CC
maturity/NN
./.
''/''
Municipal/JJ
bond/NN
analysts/NNS
said/VBD
the/DT
sell-off/NN
was/VBD
triggered/VBN
by/IN
concerns/NNS
about/IN
the/DT
city/NN
's/POS
financial/JJ
health/NN
,/,
rumors/NNS
of/IN
a/DT
$/$
900/CD
million/CD
bond/NN
offering/NN
coming/VBG
soon/RB
,/,
and/CC
political/JJ
uncertainty/NN
./.
A/DT
spokesman/NN
for/IN
the/DT
city/NN
would/MD
n't/RB
confirm/VB
the/DT
size/NN
of/IN
the/DT
bond/NN
issue/NN
,/,
but/CC
did/VBD
say/VB
that/IN
a/DT
general/JJ
obligation/NN
offering/NN
is/VBZ
in/IN
the/DT
works/NNS
and/CC
should/MD
be/VB
priced/VBN
sometime/RB
in/IN
the/DT
next/JJ
two/CD
weeks/NNS
,/,
before/IN
the/DT
November/NNP
mayoral/JJ
election/NN
./.
General/JJ
obligation/NN
bonds/NNS
are/VBP
backed/VBN
by/IN
the/DT
city/NN
's/POS
overall/JJ
revenues/NNS
and/CC
credit/NN
./.
Although/IN
many/JJ
investors/NNS
were/VBD
aware/JJ
that/IN
a/DT
bond/NN
offering/NN
was/VBD
being/VBG
scheduled/VBN
,/,
many/DT
expected/VBD
a/DT
much/RB
smaller/JJR
amount/NN
of/IN
bonds/NNS
to/TO
be/VB
sold/VBN
./.
The/DT
fact/NN
that/IN
the/DT
city/NN
will/MD
issue/VB
such/JJ
a/DT
large/JJ
amount/NN
of/IN
debt/NN
was/VBD
interpreted/VBN
as/IN
a/DT
sign/NN
that/IN
New/NNP
York/NNP
's/POS
budgetary/JJ
problems/NNS
are/VBP
more/RBR
serious/JJ
than/IN
had/VBD
been/VBN
expected/VBN
./.
New/NNP
York/NNP
,/,
one/CD
of/IN
the/DT
nation/NN
's/POS
largest/JJS
issuers/NNS
of/IN
tax-exempt/JJ
bonds/NNS
,/,
sold/VBD
$/$
750/CD
million/CD
of/IN
municipal/JJ
bonds/NNS
just/RB
a/DT
few/JJ
weeks/NNS
ago/RB
./.
There/EX
have/VBP
been/VBN
reports/NNS
for/IN
months/NNS
that/IN
the/DT
city/NN
's/POS
economy/NN
is/VBZ
weakening/VBG
,/,
as/IN
the/DT
October/NNP
1987/CD
stock/NN
market/NN
crash/NN
continues/VBZ
to/TO
make/VB
itself/PRP
felt/VBN
./.
The/DT
recent/JJ
sharp/JJ
stock/NN
market/NN
decline/NN
exacerbated/VBD
those/DT
concerns/NNS
./.
Meanwhile/RB
,/,
tax/NN
revenues/NNS
are/VBP
falling/VBG
while/IN
the/DT
city/NN
's/POS
spending/NN
needs/NNS
are/VBP
expanding/VBG
./.
Rumors/NNS
persisted/VBD
last/JJ
week/NN
that/IN
New/NNP
York/NNP
's/POS
credit/NN
ratings/NNS
--/:
single-A/JJ
from/IN
Moody/NNP
's/POS
Investors/NNPS
Service/NNP
Inc./NNP
and/CC
single-A-minus/JJ
from/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NNP
--/:
are/VBP
at/IN
risk/NN
./.
The/DT
weakness/NN
in/IN
New/NNP
York/NNP
City/NNP
bonds/NNS
follows/VBZ
a/DT
warning/NN
from/IN
New/NNP
York/NNP
state/NN
Comptroller/NN
Edward/NNP
Regan/NNP
that/IN
the/DT
1987/CD
crash/NN
seriously/RB
weakened/VBD
the/DT
city/NN
's/POS
economy/NN
./.
In/IN
a/DT
study/NN
,/,
the/DT
comptroller/NN
said/VBD
,/,
``/``
The/DT
city/NN
's/POS
glory/NN
days/NNS
are/VBP
over/RP
./.
''/''
Mr./NNP
Regan/NNP
warned/VBD
mayoral/JJ
candidates/NNS
``/``
to/TO
be/VB
prepared/JJ
for/IN
limited/JJ
options/NNS
and/CC
constraints/NNS
on/IN
service/NN
increases/NNS
to/TO
address/VB
the/DT
city/NN
's/POS
problems/NNS
in/IN
the/DT
next/JJ
few/JJ
years/NNS
,/,
due/JJ
to/TO
the/DT
now-evident/JJ
weakening/NN
in/IN
the/DT
New/NNP
York/NNP
City/NNP
economy/NN
./.
''/''
New/NNP
York/NNP
City/NNP
's/POS
revised/JJ
financial/JJ
plan/NN
,/,
due/JJ
out/RB
later/RB
this/DT
month/NN
,/,
is/VBZ
expected/VBN
to/TO
include/VB
measures/NNS
to/TO
balance/VB
the/DT
city/NN
's/POS
$/$
27/CD
billion/CD
budget/NN
./.
At/IN
present/NN
,/,
analysts/NNS
project/VBP
a/DT
budget/NN
gap/NN
on/IN
the/DT
order/NN
of/IN
$/$
500/CD
million/CD
to/TO
$/$
600/CD
million/CD
for/IN
the/DT
fiscal/JJ
year/NN
ending/VBG
June/NNP
30/CD
,/,
1990/CD
,/,
although/IN
the/DT
city/NN
's/POS
own/JJ
budget/NN
analysts/NNS
project/VBP
a/DT
narrower/JJR
deficit/NN
./.
Mark/NNP
Page/NNP
,/,
New/NNP
York/NNP
's/POS
deputy/NN
director/NN
of/IN
finance/NN
,/,
said/VBD
that/IN
investors/NNS
'/POS
concerns/NNS
about/IN
the/DT
city/NN
's/POS
financial/JJ
health/NN
are/VBP
``/``
unwarranted/JJ
given/VBN
our/PRP$
proven/VBN
ability/NN
to/TO
manage/VB
ourselves/PRP
./.
''/''
He/PRP
charges/VBZ
the/DT
city/NN
's/POS
critics/NNS
with/IN
spreading/VBG
``/``
unfounded/JJ
emotional/JJ
rhetoric/NN
./.
''/''
There/EX
are/VBP
also/RB
questions/NNS
about/IN
whether/IN
a/DT
new/JJ
and/CC
inexperienced/JJ
mayor/NN
can/MD
manage/VB
the/DT
city/NN
through/IN
what/WP
could/MD
become/VB
a/DT
financial/JJ
crisis/NN
./.
The/DT
leading/VBG
contender/NN
for/IN
the/DT
mayoral/JJ
office/NN
,/,
Democrat/NNP
David/NNP
Dinkins/NNP
,/,
has/VBZ
been/VBN
criticized/VBN
recently/RB
for/IN
the/DT
way/NN
he/PRP
handled/VBD
his/PRP$
personal/JJ
financial/JJ
affairs/NNS
./.
And/CC
the/DT
controversy/NN
has/VBZ
led/VBN
to/TO
uncertainty/NN
about/IN
the/DT
outcome/NN
of/IN
the/DT
election/NN
./.
Until/IN
last/JJ
week/NN
,/,
Mr./NNP
Dinkins/NNP
was/VBD
considered/VBN
a/DT
shoo-in/NN
./.
``/``
The/DT
market/NN
can/MD
adjust/VB
to/TO
good/JJ
news/NN
or/CC
bad/JJ
news/NN
,/,
but/CC
uncertainty/NN
drives/VBZ
people/NNS
wild/RB
,/,
''/''
said/VBD
Bernard/NNP
B./NNP
Beal/NNP
,/,
chief/JJ
executive/NN
of/IN
M.R./NNP
Beal/NNP
&/CC
Co./NNP
,/,
a/DT
securities/NNS
firm/NN
that/WDT
specializes/VBZ
in/IN
the/DT
municipal/JJ
market/NN
./.
Until/IN
last/JJ
week/NN
,/,
``/``
Everyone/NN
felt/VBD
certain/JJ
they/PRP
knew/VBD
the/DT
outcome/NN
of/IN
the/DT
election/NN
./.
Now/RB
,/,
there/EX
have/VBP
been/VBN
a/DT
number/NN
of/IN
questions/NNS
raised/VBN
./.
''/''
Last/JJ
week/NN
,/,
yields/NNS
on/IN
long-term/JJ
New/NNP
York/NNP
City/NNP
general/JJ
obligation/NN
bonds/NNS
jumped/VBD
half/PDT
a/DT
percentage/NN
point/NN
./.
New/NNP
York/NNP
City/NNP
's/POS
6/CD
%/NN
bonds/NNS
due/JJ
2018/CD
,/,
for/IN
example/NN
,/,
were/VBD
quoted/VBN
late/JJ
Friday/NNP
at/IN
a/DT
price/NN
to/TO
yield/VB
7.80/CD
%/NN
,/,
compared/VBN
with/IN
7.60/CD
%/NN
Thursday/NNP
./.
As/IN
the/DT
yield/NN
on/IN
New/NNP
York/NNP
general/JJ
obligation/NN
bonds/NNS
rose/VBD
,/,
the/DT
Bond/NNP
Buyer/NNP
20-bond/JJ
general/JJ
obligation/NN
index/NN
,/,
the/DT
mostly/RB
widely/RB
followed/JJ
gauge/NN
of/IN
the/DT
tax-exempt/JJ
market/NN
,/,
held/VBD
steady/RB
at/IN
7.19/CD
%/NN
in/IN
the/DT
week/NN
ended/VBN
Oct./NNP
19/CD
./.
Qintex/NNP
Australia/NNP
Ltd./NNP
encountered/VBD
another/DT
setback/NN
Friday/NNP
when/WRB
its/PRP$
Los/NNP
Angeles-based/JJ
affiliate/NN
,/,
Qintex/NNP
Entertainment/NNP
Inc./NNP
,/,
filed/VBD
for/IN
protection/NN
under/IN
Chapter/NN
11/CD
of/IN
the/DT
U.S./NNP
Bankruptcy/NNP
Code/NNP
./.
Qintex/NNP
Entertainment/NNP
also/RB
said/VBD
David/NNP
Evans/NNP
,/,
its/PRP$
president/NN
and/CC
chief/JJ
executive/NN
,/,
and/CC
Roger/NNP
Kimmel/NNP
,/,
a/DT
director/NN
,/,
both/DT
resigned/VBD
./.
Neither/DT
could/MD
be/VB
reached/VBN
for/IN
comment/NN
./.
Earlier/RBR
this/DT
month/NN
,/,
Qintex/NNP
Australia/NNP
's/POS
$/$
1.5/CD
billion/CD
agreement/NN
to/TO
acquire/VB
MGM\/UA/NNP
Communications/NNPS
Co./NNP
collapsed/VBD
because/IN
of/IN
a/DT
dispute/NN
over/IN
a/DT
$/$
50/CD
million/CD
letter/NN
of/IN
credit/NN
the/DT
Australian/JJ
operator/NN
of/IN
television/NN
stations/NNS
and/CC
resorts/NNS
was/VBD
to/TO
have/VB
supplied/VBN
as/IN
security/NN
in/IN
the/DT
transaction/NN
./.
Mr./NNP
Evans/NNP
had/VBD
been/VBN
the/DT
de/JJ
facto/JJ
head/NN
of/IN
MGM\/UA/NNP
for/IN
months/NNS
./.
Qintex/NNP
Entertainment/NNP
,/,
a/DT
producer/NN
and/CC
distributor/NN
of/IN
television/NN
programs/NNS
most/RBS
noted/VBN
for/IN
its/PRP$
co-production/NN
of/IN
the/DT
hit/NN
miniseries/NN
``/``
Lonesome/JJ
Dove/NN
,/,
''/''
said/VBD
it/PRP
filed/VBD
for/IN
Chapter/NN
11/CD
protection/NN
after/IN
Qintex/NNP
Australia/NNP
failed/VBD
to/TO
provide/VB
it/PRP
with/IN
$/$
5.9/CD
million/CD
owed/VBN
to/TO
MCA/NNP
Inc./NNP
in/IN
connection/NN
with/IN
the/DT
distribution/NN
of/IN
``/``
The/DT
New/JJ
Leave/VB
It/PRP
to/TO
Beaver/NNP
Show/NN
./.
''/''
Qintex/NNP
Entertainment/NNP
is/VBZ
43/CD
%/NN
owned/VBN
by/IN
Qintex/NNP
Australia/NNP
and/CC
said/VBD
it/PRP
relies/VBZ
on/IN
the/DT
Australian/JJ
company/NN
for/IN
funding/VBG
its/PRP$
working/NN
capital/NN
requirements/NNS
./.
After/IN
the/DT
announcement/NN
of/IN
the/DT
bankruptcy/NN
filing/NN
,/,
Qintex/NNP
Entertainment/NNP
stock/NN
sank/VBD
$/$
2.625/CD
in/IN
over-the-counter/JJ
trading/NN
to/TO
close/VB
at/IN
$/$
1.50/CD
on/IN
heavy/JJ
volume/NN
of/IN
more/JJR
than/IN
1.4/CD
million/CD
shares/NNS
./.
The/DT
stock/NN
traded/VBD
as/RB
high/JJ
as/IN
$/$
10/CD
this/DT
past/JJ
summer/NN
./.
Jonathan/NNP
Lloyd/NNP
,/,
executive/NN
vice/NN
president/NN
and/CC
chief/JJ
financial/JJ
officer/NN
of/IN
Qintex/NNP
Entertainment/NNP
,/,
said/VBD
Qintex/NNP
Entertainment/NNP
was/VBD
forced/VBN
to/TO
file/VB
for/IN
protection/NN
to/TO
avoid/VB
going/VBG
into/IN
default/NN
under/IN
its/PRP$
agreement/NN
with/IN
MCA/NNP
./.
The/DT
$/$
5.9/CD
million/CD
payment/NN
was/VBD
due/JJ
Oct./NNP
1/CD
and/CC
the/DT
deadline/NN
for/IN
default/NN
was/VBD
Oct./NNP
19/CD
./.
Mr./NNP
Lloyd/NNP
said/VBD
if/IN
Qintex/NNP
had/VBD
defaulted/VBN
it/PRP
could/MD
have/VB
been/VBN
required/VBN
to/TO
repay/VB
$/$
92/CD
million/CD
in/IN
debt/NN
under/IN
its/PRP$
loan/NN
agreements/NNS
./.
MCA/NNP
on/IN
Friday/NNP
said/VBD
that/IN
as/IN
a/DT
result/NN
of/IN
Qintex/NNP
's/POS
failure/NN
to/TO
make/VB
the/DT
required/JJ
payment/NN
it/PRP
was/VBD
terminating/VBG
the/DT
distribution/NN
agreement/NN
on/IN
``/``
The/DT
New/JJ
Leave/VB
It/PRP
to/TO
Beaver/NNP
''/''
as/RB
well/RB
as/IN
other/JJ
MCA/NNP
properties/NNS
./.
Qintex/NNP
Australia/NNP
was/VBD
``/``
saying/VBG
as/RB
recently/RB
as/IN
last/JJ
weekend/NN
that/IN
they/PRP
would/MD
take/VB
care/VB
of/IN
the/DT
situation/NN
./.
They/PRP
continued/VBD
to/TO
represent/VB
that/IN
to/TO
the/DT
board/NN
,/,
''/''
said/VBD
Mr./NNP
Lloyd/NNP
./.
``/``
We/PRP
were/VBD
reassured/VBN
they/PRP
would/MD
stand/VB
behind/IN
the/DT
company/NN
./.
''/''
Mr./NNP
Lloyd/NNP
said/VBD
both/DT
Qintex/NNP
Entertainment/NNP
and/CC
Qintex/NNP
Australia/NNP
had/VBD
attempted/VBN
to/TO
secure/VB
a/DT
loan/NN
that/WDT
would/MD
allow/VB
the/DT
company/NN
to/TO
make/VB
the/DT
$/$
5.9/CD
million/CD
payment/NN
but/CC
the/DT
request/NN
was/VBD
turned/VBN
down/RB
by/IN
an/DT
unidentified/JJ
lender/NN
on/IN
Oct./NNP
14/CD
./.
At/IN
that/DT
point/NN
,/,
he/PRP
said/VBD
,/,
Qintex/NNP
Australia/NNP
stated/VBD
it/PRP
would/MD
``/``
endeavor/VB
to/TO
arrange/VB
''/''
the/DT
financing/NN
./.
However/WRB
a/DT
Qintex/NNP
Australia/NNP
spokesman/NN
said/VBD
his/PRP$
firm/NN
had/VBD
never/RB
``/``
promised/VBN
or/CC
guaranteed/VBN
''/''
to/TO
make/VB
the/DT
payment/NN
./.
In/IN
a/DT
prepared/JJ
statement/NN
from/IN
Australia/NNP
,/,
the/DT
company/NN
also/RB
said/VBD
that/IN
,/,
following/VBG
the/DT
breakdown/NN
of/IN
the/DT
MGM/NNP
talks/NNS
,/,
it/PRP
``/``
had/VBD
been/VBN
re-evaluating/VBG
its/PRP$
position/NN
as/IN
a/DT
significant/JJ
shareholder/NN
and/CC
a/DT
substantial/JJ
creditor/NN
of/IN
Qintex/NNP
Entertainment/NNP
''/''
and/CC
had/VBD
``/``
resolved/VBN
to/TO
minimize/VB
the/DT
degree/NN
of/IN
further/JJ
loans/NNS
to/TO
Qintex/NNP
Entertainment/NNP
in/IN
excess/NN
of/IN
that/DT
previously/RB
made/VBN
./.
''/''
The/DT
Qintex/NNP
Australia/NNP
spokesman/NN
added/VBD
that/DT
his/PRP$
company/NN
had/VBD
opposed/VBN
the/DT
Chapter/NN
11/CD
filing/NN
./.
He/PRP
said/VBD
the/DT
company/NN
believed/VBD
Qintex/NNP
Entertainment/NNP
's/POS
financial/JJ
problems/NNS
could/MD
have/VB
been/VBN
resolved/VBN
by/IN
other/JJ
means/NNS
./.
The/DT
report/NN
of/IN
the/DT
bankruptcy/NN
filing/NN
stunned/VBD
Hollywood/NNP
executives/NNS
and/CC
investors/NNS
./.
``/``
It/PRP
's/VBZ
a/DT
shocker/NN
,/,
''/''
said/VBD
Joseph/NNP
Di/NNP
Lillo/NNP
,/,
chairman/NN
of/IN
Drake/NNP
Capital/NNP
Securities/NNPS
,/,
a/DT
brokerage/NN
firm/NN
that/WDT
has/VBZ
an/DT
investment/NN
in/IN
Qintex/NNP
Entertainment/NNP
./.
Qintex/NNP
Australia/NNP
was/VBD
``/``
going/VBG
to/TO
pay/VB
more/JJR
than/IN
$/$
1/CD
billion/CD
for/IN
MGM\/UA/NNP
and/CC
then/RB
they/PRP
could/MD
n't/RB
come/VB
up/RB
with/IN
the/DT
far/RB
smaller/JJR
sum/NN
of/IN
$/$
5.9/CD
million/CD
./.
''/''
Qintex/NNP
said/VBD
Mr./NNP
Evans/NNP
,/,
the/DT
former/JJ
president/NN
,/,
resigned/VBD
for/IN
``/``
personal/JJ
reasons/NNS
''/''
and/CC
that/IN
Mr./NNP
Kimmel/NNP
,/,
an/DT
attorney/NN
,/,
resigned/VBD
because/IN
his/PRP$
participation/NN
in/IN
evaluating/VBG
the/DT
company/NN
's/POS
role/NN
in/IN
buying/VBG
MGM\/UA/NN
was/VBD
no/RB
longer/RB
necessary/JJ
./.
Mr./NNP
Kimmel/NNP
was/VBD
a/DT
director/NN
of/IN
the/DT
company/NN
and/CC
a/DT
predecessor/NN
firm/NN
since/IN
1980/CD
./.
The/DT
announcement/NN
seemed/VBD
to/TO
further/RB
damp/VB
prospects/NNS
that/IN
talks/NNS
between/IN
Qintex/NNP
Australia/NNP
and/CC
MGM\/UA/NNP
might/MD
be/VB
revived/VBN
./.
It/PRP
's/VBZ
understood/VBN
that/IN
MGM\/UA/NNP
recently/RB
contacted/VBD
Rupert/NNP
Murdoch/NNP
's/POS
News/NNP
Corp./NNP
,/,
which/WDT
made/VBD
two/CD
failed/VBN
bids/NNS
for/IN
the/DT
movie/NN
studio/NN
,/,
to/TO
see/VB
if/IN
the/DT
company/NN
was/VBD
still/RB
interested/JJ
./.
However/RB
,/,
``/``
we/PRP
are/VBP
n't/RB
currently/RB
doing/VBG
anything/NN
./.
It/PRP
is/VBZ
n't/RB
a/DT
current/JJ
topic/NN
of/IN
conversation/NN
at/IN
the/DT
company/NN
,/,
''/''
said/VBD
Barry/NNP
Diller/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
of/IN
the/DT
Fox/NNP
Inc./NNP
unit/NN
of/IN
News/NNP
Corp/NNP
./.
Financial/JJ
printer/NN
Bowne/NNP
&/CC
Co./NNP
said/VBD
it/PRP
formed/VBD
a/DT
business/NN
translation/NN
service/NN
,/,
which/WDT
will/MD
provide/VB
legal/JJ
,/,
financial/JJ
and/CC
other/JJ
services/NNS
in/IN
most/JJS
major/JJ
languages/NNS
,/,
including/VBG
Japanese/NNP
,/,
Chinese/NNP
and/CC
Russian/NNP
./.
Japan/NNP
's/POS
Finance/NNP
Ministry/NNP
strongly/RB
denied/VBD
playing/VBG
any/DT
role/NN
in/IN
the/DT
New/NNP
York/NNP
stock-price/JJ
free/JJ
fall/NN
./.
Makoto/NNP
Utsumi/NNP
,/,
vice/NN
minister/NN
for/IN
international/JJ
affairs/NNS
,/,
said/VBD
the/DT
ministry/NN
did/VBD
n't/RB
in/IN
any/DT
way/NN
suggest/VB
to/TO
Japanese/JJ
banks/NNS
that/IN
they/PRP
stay/VB
out/RB
of/IN
the/DT
UAL/NNP
Corp./NNP
leveraged/JJ
buy-out/NN
./.
The/DT
ministry/NN
has/VBZ
never/RB
even/RB
suggested/VBN
that/IN
Japanese/JJ
banks/NNS
be/VB
cautious/JJ
about/IN
leveraged/JJ
buy-outs/NNS
in/IN
general/JJ
,/,
Mr./NNP
Utsumi/NNP
said/VBD
./.
``/``
There/EX
are/VBP
no/DT
facts/NNS
the/DT
assertions/NNS
we/PRP
sent/VBD
any/DT
kind/NN
of/IN
signal/NN
,/,
''/''
he/PRP
declared/VBD
in/IN
an/DT
interview/NN
./.
The/DT
comments/NNS
were/VBD
the/DT
ministry/NN
's/POS
first/RB
detailed/JJ
public/JJ
statement/NN
on/IN
the/DT
subject/NN
,/,
and/CC
reflect/VBP
the/DT
ministry/NN
's/POS
concern/NN
that/IN
foreigners/NNS
will/MD
think/VB
Japan/NNP
is/VBZ
using/VBG
its/PRP$
tremendous/JJ
financial/JJ
power/NN
to/TO
control/VB
events/NNS
in/IN
foreign/JJ
markets/NNS
./.
A/DT
number/NN
of/IN
accounts/NNS
of/IN
the/DT
events/NNS
leading/VBG
to/TO
the/DT
190/CD
point/NN
drop/NN
in/IN
New/NNP
York/NNP
stock/NN
prices/NNS
on/IN
Oct./NNP
13/CD
accused/VBD
the/DT
ministry/NN
of/IN
pulling/VBG
the/DT
plug/NN
on/IN
the/DT
UAL/NNP
deal/NN
for/IN
one/CD
reason/NN
or/CC
another/DT
./.
Mr./NNP
Utsumi/NNP
said/VBD
the/DT
most/JJS
the/DT
ministry/NN
had/VBD
ever/RB
done/VBN
was/VBD
ask/VB
Japanese/JJ
banks/NNS
about/IN
``/``
the/DT
status/NN
of/IN
their/PRP$
participation/NN
''/''
in/IN
one/CD
previous/JJ
U.S./NNP
leveraged/JJ
buy-out/NN
./.
The/DT
ministry/NN
inquired/VBD
about/IN
that/DT
deal/NN
--/:
which/WDT
Mr./NNP
Utsumi/NNP
declined/VBD
to/TO
identify/VB
--/:
because/IN
the/DT
large/JJ
presence/NN
of/IN
Japanese/JJ
banks/NNS
in/IN
the/DT
deal/NN
was/VBD
``/``
being/VBG
strongly/RB
criticized/VBN
in/IN
the/DT
U.S./NNP
Congress/NNP
''/''
and/CC
it/PRP
was/VBD
``/``
necessary/JJ
for/IN
us/PRP
to/TO
grasp/VB
the/DT
situation/NN
./.
''/''
He/PRP
said/VBD
the/DT
inquiry/NN
was/VBD
n't/RB
made/VBN
in/IN
a/DT
way/NN
that/IN
the/DT
banks/NNS
could/MD
have/VB
interpreted/VBN
as/IN
either/DT
encouraging/JJ
or/CC
discouraging/JJ
participation/NN
,/,
and/CC
he/PRP
added/VBD
that/IN
none/NN
of/IN
the/DT
Japanese/JJ
banks/NNS
changed/VBD
their/PRP$
posture/NN
on/IN
the/DT
deal/NN
as/IN
a/DT
result/NN
of/IN
the/DT
inquiry/NN
./.
Mr./NNP
Utsumi/NNP
also/RB
said/VBD
some/DT
Japanese/JJ
banks/NNS
were/VBD
willing/JJ
to/TO
participate/VB
in/IN
the/DT
UAL/NNP
financing/NN
up/IN
to/TO
the/DT
very/JJ
end/NN
,/,
which/WDT
would/MD
suggest/VB
at/IN
the/DT
very/RB
least/JJS
that/IN
they/PRP
were/VBD
n't/RB
under/IN
orders/NNS
to/TO
back/VB
out/RB
./.
In/IN
general/JJ
,/,
Mr./NNP
Utsumi/NNP
said/VBD
,/,
Japanese/JJ
banks/NNS
are/VBP
becoming/VBG
more/RBR
``/``
independent/JJ
''/''
in/IN
their/PRP$
approach/NN
to/TO
overseas/JJ
deals/NNS
./.
``/``
Each/DT
Japanese/JJ
bank/NN
has/VBZ
its/PRP$
own/JJ
judgment/NN
on/IN
the/DT
profits/NNS
and/CC
risks/NNS
in/IN
that/DT
UAL/NNP
deal/NN
,/,
''/''
he/PRP
said/VBD
./.
``/``
They/PRP
are/VBP
becoming/VBG
more/RBR
independent/JJ
./.
It/PRP
's/VBZ
a/DT
sound/JJ
phenomenon/NN
./.
''/''
Sanwa/NNP
Bank/NNP
Ltd./NNP
is/VBZ
one/CD
Japanese/JJ
bank/NN
that/WDT
decided/VBD
not/RB
to/TO
participate/VB
in/IN
the/DT
first/JJ
UAL/NNP
proposal/NN
./.
A/DT
Sanwa/NNP
Bank/NNP
spokesman/NN
denied/VBD
that/IN
the/DT
finance/NN
ministry/NN
played/VBD
any/DT
part/NN
in/IN
the/DT
bank/NN
's/POS
decision/NN
./.
``/``
We/PRP
made/VBD
our/PRP$
own/JJ
decision/NN
,/,
''/''
he/PRP
said/VBD
./.
Still/RB
,/,
Mr./NNP
Utsumi/NNP
may/MD
have/VB
a/DT
hard/JJ
time/NN
convincing/VBG
market/NN
analysts/NNS
who/WP
have/VBP
rightly/RB
or/CC
wrongly/RB
believed/VBN
that/IN
the/DT
ministry/NN
played/VBD
a/DT
role/NN
in/IN
orchestrating/VBG
recent/JJ
moves/NNS
by/IN
Japanese/JJ
banks/NNS
./.
All/DT
week/NN
there/EX
has/VBZ
been/VBN
much/JJ
speculation/NN
in/IN
financial/JJ
circles/NNS
in/IN
Tokyo/NNP
and/CC
abroad/RB
about/IN
the/DT
ministry/NN
's/POS
real/JJ
position/NN
./.
Bank/NN
analysts/NNS
say/VBP
ministry/NN
officials/NNS
have/VBP
been/VBN
growing/VBG
increasingly/RB
concerned/JJ
during/IN
the/DT
past/JJ
few/JJ
months/NNS
about/IN
Japanese/JJ
banks/NNS
getting/VBG
in/IN
over/IN
their/PRP$
heads/NNS
./.
``/``
The/DT
ministry/NN
the/DT
banks/NNS
do/VBP
n't/RB
know/VB
what/WP
they/PRP
are/VBP
doing/VBG
,/,
that/IN
they/PRP
have/VBP
very/RB
little/JJ
idea/NN
how/WRB
to/TO
cope/VB
with/IN
risk/NN
,/,
''/''
said/VBD
one/CD
foreign/JJ
bank/NN
analyst/NN
who/WP
asked/VBD
not/RB
to/TO
be/VB
identified/VBN
./.
``/``
The/DT
ministry/NN
the/DT
Japanese/JJ
banks/NNS
pull/VB
in/RP
their/PRP$
horns/NNS
''/''
on/IN
leveraged/JJ
buy-outs/NNS
,/,
he/PRP
added/VBD
./.
Although/IN
some/DT
of/IN
the/DT
Japanese/JJ
banks/NNS
involved/JJ
in/IN
the/DT
first/JJ
proposed/VBN
bid/NN
for/IN
UAL/NNP
bowed/VBD
out/RB
because/IN
they/PRP
found/VBD
the/DT
terms/NNS
unattractive/JJ
,/,
observers/NNS
here/RB
say/VBP
they/PRP
have/VBP
a/DT
hard/JJ
time/NN
believing/VBG
that/IN
commercial/JJ
considerations/NNS
were/VBD
the/DT
only/JJ
reason/NN
./.
Japanese/JJ
banks/NNS
are/VBP
under/IN
``/``
political/JJ
pressure/NN
''/''
as/IN
well/RB
,/,
the/DT
analyst/NN
said/VBD
./.
Moreover/RB
,/,
analysts/NNS
point/VBP
out/RB
that/IN
Japanese/JJ
banks/NNS
have/VBP
a/DT
reputation/NN
for/IN
doing/VBG
deals/NNS
that/WDT
are/VBP
n't/RB
extremely/RB
profitable/JJ
if/IN
they/PRP
offer/VBP
the/DT
chance/NN
to/TO
build/VB
market/NN
share/NN
,/,
cement/VB
an/DT
important/JJ
business/NN
relationship/NN
or/CC
curry/VB
favor/NN
with/IN
powerful/JJ
bureaucrats/NNS
./.
Clearly/RB
,/,
some/DT
financial/JJ
authorities/NNS
are/VBP
concerned/JJ
about/IN
the/DT
Japanese/JJ
banks/NNS
role/NN
in/IN
leveraged/JJ
buy-outs/NNS
./.
At/IN
a/DT
news/NN
conference/NN
this/DT
week/NN
,/,
Bank/NNP
of/IN
Japan/NNP
Gov./NNP
Satoshi/NNP
Sumita/NNP
cautioned/VBD
banks/NNS
to/TO
take/VB
a/DT
``/``
prudent/JJ
''/''
stance/NN
regarding/VBG
highly/RB
leveraged/JJ
deals/NNS
./.
Despite/IN
Mr./NNP
Sumita/NNP
's/POS
statements/NNS
,/,
it/PRP
is/VBZ
the/DT
Finance/NNP
Ministry/NNP
,/,
not/RB
the/DT
central/JJ
bank/NN
,/,
that/WDT
makes/VBZ
policy/NN
decisions/NNS
./.
While/IN
recent/JJ
events/NNS
may/MD
cool/VB
some/DT
of/IN
the/DT
leveraged/JJ
buy-out/NN
fever/NN
,/,
Japanese/JJ
banks/NNS
are/VBP
n't/RB
likely/JJ
to/TO
walk/VB
away/RB
from/IN
the/DT
game/NN
./.
Despite/IN
the/DT
risks/NNS
,/,
the/DT
deals/NNS
can/MD
be/VB
an/DT
attractive/JJ
way/NN
for/IN
Japanese/JJ
banks/NNS
to/TO
increase/VB
their/PRP$
presence/NN
in/IN
the/DT
U.S./NNP
market/NN
,/,
bank/NN
analysts/NNS
say/VBP
./.
Flush/JJ
with/IN
cash/NN
at/IN
home/NN
,/,
but/CC
with/IN
fewer/JJR
customers/NNS
to/TO
lend/VB
to/TO
,/,
leading/VBG
banks/NNS
are/VBP
eager/JJ
to/TO
expand/VB
overseas/RB
./.
Jumping/VBG
in/RB
on/IN
big/JJ
deals/NNS
is/VBZ
a/DT
high/RB
profile/JJ
way/NN
to/TO
leapfrog/VB
the/DT
problem/NN
of/IN
not/RB
having/VBG
a/DT
strong/JJ
retail-banking/JJ
network/NN
./.
France/NNP
's/POS
national/JJ
tobacco/NN
company/NN
,/,
known/VBN
for/IN
making/VBG
brown-tobacco/JJ
cigarettes/NNS
such/JJ
as/IN
Gauloises/NNP
and/CC
Gitanes/NNP
,/,
is/VBZ
branching/VBG
out/RP
./.
Concerned/JJ
by/IN
dipping/VBG
demand/NN
for/IN
its/PRP$
traditional/JJ
products/NNS
,/,
it/PRP
is/VBZ
moving/VBG
not/RB
only/RB
into/IN
blonde/JJ
cigarettes/NNS
,/,
but/CC
also/RB
into/IN
electronic/JJ
car-parking/JJ
payment/NN
cards/NNS
to/TO
be/VB
sold/VBN
in/IN
neighborhood/NN
tobacco/NN
stores/NNS
./.
Brown/JJ
tobacco/NN
in/IN
France/NNP
is/VBZ
a/DT
more/RBR
pungent/JJ
,/,
stronger/JJR
grade/NN
than/IN
the/DT
lighter/JJR
grade/NN
,/,
or/CC
blonde/JJ
tobacco/NN
,/,
used/VBN
in/IN
so-called/JJ
American-style/JJ
cigarettes/NNS
./.
``/``
We/PRP
are/VBP
n't/RB
Philip/NNP
Morris/NNP
Cos./NNPS
,/,
''/''
says/VBZ
Bertrand/NNP
de/FW
Galle/NNP
,/,
chairman/NN
of/IN
government-owned/JJ
Societe/NNP
Nationale/NNP
d'Exploitation/NNP
Industrielle/NNP
des/FW
Tabacs/NNP
&/CC
Allumettes/NNP
S.A./NNP
,/,
known/VBN
as/IN
Seita/NNP
./.
He/PRP
says/VBZ
that/IN
because/IN
Seita/NNP
's/POS
profits/NNS
are/VBP
limited/VBN
by/IN
government-controlled/JJ
cigarette/NN
prices/NNS
,/,
he/PRP
does/VBZ
n't/RB
have/VB
the/DT
cash/NN
to/TO
diversify/VB
as/RB
heavily/RB
into/IN
food/NN
and/CC
drink/NN
as/IN
the/DT
U.S./NNP
concern/NN
has/VBZ
done/VBN
./.
Last/JJ
year/NN
,/,
for/IN
example/NN
,/,
Seita/NNP
's/POS
net/JJ
profit/NN
soared/VBD
150/CD
%/NN
to/TO
461.6/CD
million/CD
French/JJ
francs/NNS
$/$
73.5/CD
million/CD
sales/NNS
of/IN
FFr/SYM
27.68/CD
billion/CD
-/:
a/DT

1.7/CD
%/NN
profit/NN
margin/NN
./.
Instead/RB
,/,
he/PRP
said/VBD
in/IN
an/DT
interview/NN
,/,
he/PRP
is/VBZ
looking/VBG
for/IN
ways/NNS
to/TO
exploit/VB
France/NNP
's/POS
network/NN
of/IN
39,000/CD
tobacco/NN
agents/NNS
,/,
most/JJS
of/IN
them/PRP
cafes/NNS
./.
While/IN
Seita/NNP
does/VBZ
n't/RB
own/VB
the/DT
French/JJ
tabacs/NNS
,/,
its/PRP$
close/JJ
alliance/NN
with/IN
them/PRP
offers/VBZ
distribution/NN
possibilities/NNS
./.
One/CD
proposal/NN
is/VBZ
to/TO
introduce/VB
a/DT
new/JJ
payment/NN
system/NN
for/IN
parking/NN
in/IN
Paris/NNP
./.
Instead/RB
of/IN
paying/VBG
for/IN
parking/NN
by/IN
putting/VBG
money/NN
in/IN
the/DT
existing/VBG
machines/NNS
,/,
which/WDT
deliver/VBP
little/JJ
paper/NN
receipts/NNS
,/,
drivers/NNS
would/MD
be/VB
able/JJ
to/TO
buy/VB
electronic/JJ
cards/NNS
in/IN
local/JJ
tobacco/NN
shops/NNS
./.
Once/RB
activated/VBN
,/,
the/DT
card/NN
would/MD
sit/VB
in/IN
the/DT
car/NN
's/POS
window/NN
,/,
showing/VBG
traffic/NN
wardens/NNS
how/WRB
much/JJ
time/NN
the/DT
motorist/NN
could/MD
remain/VB
./.
When/WRB
the/DT
motorist/NN
returned/VBD
to/TO
his/PRP$
car/NN
he/PRP
could/MD
turn/VB
the/DT
card/NN
off/RP
and/CC
,/,
if/IN
it/PRP
showed/VBD
time/NN
remaining/VBG
,/,
save/VB
it/PRP
for/IN
later/RB
./.
Seita/NNP
is/VBZ
a/DT
partner/NN
in/IN
the/DT
project/NN
,/,
which/WDT
was/VBD
developed/VBN
by/IN
Matra/NNP
SA/NNP
using/VBG
Japanese/JJ
technology/NN
./.
Seita/NNP
and/CC
Matra/NNP
currently/RB
are/VBP
negotiating/VBG
with/IN
city/NN
officials/NNS
for/IN
the/DT
right/NN
to/TO
begin/VB
service/NN
./.
And/CC
Seita/NNP
is/VBZ
considering/VBG
further/JJ
diversification/NN
./.
It/PRP
wanted/VBD
to/TO
buy/VB
RJR/NNP
Nabisco/NNP
Inc./NNP
's/POS
French/JJ
cracker/NN
subsidiary/NN
,/,
Belin/NNP
,/,
in/IN
hopes/NNS
of/IN
selling/VBG
its/PRP$
products/NNS
in/IN
tobacco/NN
stores/NNS
,/,
but/CC
lost/VBD
the/DT
bidding/NN
to/TO
food/NN
group/NN
BSN/NNP
SA/NNP
./.
It/PRP
currently/RB
is/VBZ
considering/VBG
bidding/VBG
for/IN
Swedish/NNP
Match/NNP
Co/NNP
./.
And/CC
it/PRP
retains/VBZ
an/DT
interest/NN
in/IN
acquiring/VBG
candies/NNS
and/CC
other/JJ
articles/NNS
that/WDT
might/MD
be/VB
sold/VBN
in/IN
tobacco/NN
shops/NNS
./.
It/PRP
also/RB
is/VBZ
trying/VBG
to/TO
shore/VB
up/RP
its/PRP$
tobacco/NN
business/NN
./.
Brown-tobacco/JJ
cigarettes/NNS
such/JJ
as/IN
Gauloises/NNP
now/RB
make/VBP
up/RP
just/RB
40/CD
%/NN
of/IN
the/DT
French/JJ
tobacco/NN
market/NN
,/,
half/PDT
the/DT
level/NN
of/IN
about/IN
two/CD
decades/NNS
ago/RB
./.
While/IN
Seita/NNP
retains/VBZ
a/DT
manufacturing/NN
monopoly/NN
in/IN
France/NNP
,/,
it/PRP
is/VBZ
being/VBG
hurt/VBN
by/IN
rising/VBG
imports/NNS
and/CC
from/IN
waning/VBG
cigarette/NN
demand/NN
./.
So/RB
Seita/NNP
has/VBZ
introduced/VBN
blonde/JJ
cigarettes/NNS
under/IN
the/DT
Gauloises/NNP
label/NN
,/,
and/CC
intends/VBZ
to/TO
relaunch/VB
the/DT
unsuccessful/JJ
Gitanes/NNP
Blondes/NNPS
in/IN
new/JJ
packaging/NN
,/,
similar/JJ
to/TO
the/DT
slide-packs/NNS
used/VBN
by/IN
brown-tobacco/JJ
Gitanes/NNP
./.
The/DT
aim/NN
,/,
says/VBZ
Mr./NNP
de/FW
Galle/NNP
,/,
is/VBZ
to/TO
win/VB
market/NN
share/NN
from/IN
imported/VBN
cigarettes/NNS
,/,
and/CC
to/TO
persuade/VB
smokers/NNS
who/WP
are/VBP
switching/VBG
to/TO
blonde/JJ
cigarettes/NNS
to/TO
keep/VB
buying/VBG
French/JJ
./.
When/WRB
the/DT
Supreme/NNP
Court/NNP
upheld/VBD
Missouri/NNP
's/POS
abortion/NN
restrictions/NNS
last/JJ
July/NNP
,/,
the/DT
justices/NNS
almost/RB
certainly/RB
did/VBD
n't/RB
have/VB
drunk/JJ
driving/NN
,/,
trespassing/NN
and/CC
false/JJ
imprisonment/NN
on/IN
their/PRP$
minds/NNS
./.
But/CC
the/DT
5-4/JJ
ruling/NN
may/MD
have/VB
had/VBN
as/RB
much/JJ
immediate/JJ
impact/NN
on/IN
those/DT
activities/NNS
--/:
especially/RB
trespassing/NN
--/:
as/IN
on/IN
abortion/NN
rights/NNS
./.
The/DT
decision/NN
,/,
Webster/NNP
vs./FW
Reproductive/NNP
Health/NNP
Services/NNPS
,/,
illustrates/VBZ
how/WRB
Supreme/NNP
Court/NNP
rulings/NNS
often/RB
have/VBP
a/DT
ripple/JJ
effect/NN
,/,
spreading/VBG
into/IN
areas/NNS
of/IN
law/NN
and/CC
policy/NN
that/WDT
were/VBD
n't/RB
part/NN
of/IN
the/DT
actual/JJ
cases/NNS
decided/VBN
and/CC
that/IN
never/RB
were/VBD
contemplated/VBN
by/IN
the/DT
justices/NNS
./.
In/IN
the/DT
Missouri/NNP
case/NN
,/,
unforeseen/JJ
consequences/NNS
may/MD
have/VB
arisen/VBN
because/IN
the/DT
high/JJ
court/NN
reinstated/VBD
the/DT
preamble/NN
of/IN
the/DT
state/NN
's/POS
1986/CD
abortion/NN
law/NN
./.
The/DT
preamble/NN
says/VBZ
that/IN
human/JJ
life/NN
begins/VBZ
at/IN
conception/NN
and/CC
that/IN
unborn/JJ
children/NNS
have/VBP
rights/NNS
protected/VBN
by/IN
the/DT
Constitution/NNP
./.
Last/JJ
year/NN
,/,
a/DT
federal/JJ
appeals/NNS
court/NN
in/IN
St./NNP
Louis/NNP
said/VBD
the/DT
preamble/NN
was/VBD
unconstitutional/JJ
,/,
citing/VBG
an/DT
earlier/JJR
Supreme/NNP
Court/NNP
ruling/NN
that/IN
states/NNS
ca/MD
n't/RB
justify/VB
stricter/JJR
abortion/NN
curbs/NNS
by/IN
changing/VBG
the/DT
definition/NN
of/IN
when/WRB
life/NN
begins/VBZ
./.
But/CC
the/DT
Supreme/NNP
Court/NNP
concluded/VBD
that/IN
it/PRP
was/VBD
premature/JJ
to/TO
rule/VB
on/IN
the/DT
constitutionality/NN
of/IN
the/DT
preamble/NN
because/IN
the/DT
definition/NN
of/IN
human/JJ
life/NN
had/VBD
n't/RB
yet/RB
been/VBN
used/VBN
to/TO
restrict/VB
abortion/NN
services/NNS
./.
The/DT
high/JJ
court/NN
majority/NN
said/VBD
it/PRP
was/VBD
up/IN
to/TO
the/DT
state/NN
courts/NNS
for/IN
now/RB
to/TO
decide/VB
whether/IN
the/DT
definition/NN
has/VBZ
any/DT
bearing/NN
on/IN
other/JJ
state/NN
laws/NNS
./.
Already/RB
,/,
local/JJ
Missouri/NNP
judges/NNS
have/VBP
relied/VBN
on/IN
the/DT
restored/VBN
preamble/NN
in/IN
two/CD
separate/JJ
cases/NNS
to/TO
throw/VB
out/RP
criminal/JJ
trespass/NN
charges/NNS
against/IN
anti-abortion/JJ
demonstrators/NNS
who/WP
blocked/VBD
access/NN
to/TO
Reproductive/NNP
Health/NNP
Services/NNPS
,/,
an/DT
abortion/NN
clinic/NN
in/IN
St./NNP
Louis/NNP
./.
The/DT
protesters/NNS
said/VBD
their/PRP$
actions/NNS
were/VBD
justified/JJ
by/IN
the/DT
desire/NN
to/TO
save/VB
the/DT
lives/NNS
of/IN
unborn/JJ
children/NNS
./.
Under/IN
a/DT
1981/CD
Missouri/NNP
law/NN
,/,
persons/NNS
accused/VBN
of/IN
some/DT
crimes/NNS
,/,
including/VBG
trespassing/NN
,/,
may/MD
offer/VB
a/DT
defense/NN
that/IN
their/PRP$
actions/NNS
were/VBD
justified/JJ
``/``
as/IN
an/DT
emergency/NN
measure/NN
to/TO
avoid/VB
an/DT
imminent/JJ
public/NN
or/CC
private/JJ
injury/NN
./.
''/''
Relying/VBG
on/IN
the/DT
preamble/NN
's/POS
statement/NN
that/IN
a/DT
fetus/NN
is/VBZ
an/DT
unborn/JJ
child/NN
,/,
the/DT
two/CD
St./NNP
Louis/NNP
County/NNP
Circuit/NNP
Court/NNP
judges/NNS
in/IN
August/NNP
accepted/VBD
the/DT
justification/NN
that/IN
the/DT
abortion/NN
clinic/NN
protesters/NNS
were/VBD
trying/VBG
to/TO
save/VB
lives/NNS
./.
In/IN
another/DT
case/NN
,/,
a/DT
protester/NN
,/,
Ann/NNP
O'Brien/NNP
,/,
was/VBD
convicted/VBN
of/IN
trespass/NN
before/IN
the/DT
Supreme/NNP
Court/NNP
's/POS
Webster/NNP
ruling/NN
./.
Last/JJ
week/NN
,/,
when/WRB
her/PRP$
appeal/NN
was/VBD
argued/VBN
before/IN
the/DT
Missouri/NNP
Court/NNP
of/IN
Appeals/NNPS
,/,
her/PRP$
lawyer/NN
also/RB
relied/VB
on/IN
the/DT
preamble/NN
./.
``/``
The/DT
effect/NN
of/IN
the/DT
Supreme/NNP
Court/NNP
Webster/NNP
opinion/NN
is/VBZ
that/IN
it/PRP
left/VBD
room/NN
for/IN
grass/NN
to/TO
grow/VB
in/IN
the/DT
cracks/NNS
of/IN
Roe/NNP
vs./FW
Wade/NNP
,/,
and/CC
I/PRP
think/VBP
this/DT
is/VBZ
one/CD
of/IN
the/DT
cracks/NNS
,/,
''/''
said/VBD
Mark/NNP
Belz/NNP
,/,
a/DT
St./NNP
Louis/NNP
lawyer/NN
who/WP
represented/VBD
Ms./NNP
O'Brien/NNP
and/CC
the/DT
other/JJ
St./NNP
Louis/NNP
protesters/NNS
./.
Roe/NNP
vs./FW
Wade/NNP
was/VBD
the/DT
Supreme/NNP
Court/NNP
's/POS
1973/CD
decision/NN
that/WDT
recognized/VBD
a/DT
woman/NN
's/POS
right/NN
to/TO
abortion/NN
./.
Mario/NNP
Mandina/NNP
,/,
president/NN
of/IN
Kansas/NNP
City/NNP
Lawyers/NNPS
for/IN
Life/NNP
,/,
says/VBZ
that/IN
if/IN
abortion/NN
foes/NNS
succeed/VBP
in/IN
using/VBG
the/DT
preamble/NN
to/TO
escape/VB
prosecution/NN
for/IN
trespass/NN
,/,
``/``
This/DT
will/MD
shut/VB
down/RP
abortion/NN
in/IN
Missouri/NNP
./.
There/EX
's/VBZ
no/DT
risk/NN
to/TO
the/DT
protesters/NNS
,/,
and/CC
you/PRP
ca/MD
n't/RB
keep/VB
an/DT
abortion/NN
clinic/NN
open/JJ
if/IN
there/EX
are/VBP
3,000/CD
people/NNS
standing/VBG
outside/IN
every/DT
day/NN
./.
''/''
That/DT
would/MD
be/VB
an/DT
ironic/JJ
result/NN
of/IN
a/DT
case/NN
in/IN
which/WDT
the/DT
Supreme/NNP
Court/NNP
expressly/RB
stopped/VBD
short/RB
of/IN
overruling/VBG
Roe/NNP
vs./FW
Wade/NNP
./.
In/IN
two/CD
other/JJ
cases/NNS
,/,
the/DT
possible/JJ
consequences/NNS
of/IN
the/DT
Supreme/NNP
Court/NNP
ruling/NN
appear/VBP
even/RB
more/RBR
unintended/JJ
./.
In/IN
one/CD
,/,
the/DT
lawyer/NN
for/IN
a/DT
20-year-old/JJ
resident/NN
of/IN
Columbia/NNP
,/,
Mo./NNP
,/,
who/WP
was/VBD
charged/VBN
with/IN
drunk/JJ
driving/NN
,/,
argued/VBD
that/DT
his/PRP$
client/NN
should/MD
be/VB
treated/VBN
as/IN
a/DT
21-year-old/JJ
adult/NN
because/IN
his/PRP$
actual/JJ
age/NN
should/MD
be/VB
calculated/VBN
from/IN
conception/NN
,/,
not/RB
from/IN
birth/NN
./.
In/IN
Missouri/NNP
,/,
those/DT
caught/VBN
drinking/NN
and/CC
driving/NN
between/IN
the/DT
ages/NNS
of/IN
16/CD
and/CC
21/CD
may/MD
have/VB
their/PRP$
licenses/NNS
revoked/VBN
for/IN
one/CD
year/NN
,/,
while/IN
those/DT
21/CD
or/CC
older/JJR
suffer/VBP
only/RB
a/DT
30-day/JJ
suspension/NN
./.
A/DT
Boone/NNP
County/NNP
judge/NN
rejected/VBD
the/DT
motion/NN
,/,
but/CC
Daniel/NNP
Dodson/NNP
,/,
a/DT
Jefferson/NNP
City/NNP
lawyer/NN
,/,
says/VBZ
he/PRP
has/VBZ
appealed/VBN
./.
And/CC
in/IN
a/DT
case/NN
filed/VBN
in/IN
federal/JJ
court/NN
in/IN
August/NNP
,/,
a/DT
lawyer/NN
is/VBZ
arguing/VBG
that/IN
Missouri/NNP
authorities/NNS
are/VBP
wrongfully/RB
imprisoning/VBG
the/DT
fetus/NN
of/IN
a/DT
pregnant/JJ
woman/NN
who/WP
is/VBZ
in/IN
jail/NN
for/IN
theft/NN
and/CC
forgery/NN
./.
In/IN
terms/NNS
of/IN
sheer/JJ
brutality/NN
,/,
the/DT
Somali/JJ
regime/NN
of/IN
Siad/NNP
Barre/NNP
may/MD
rank/VB
as/IN
No./NNP
1/CD
in/IN
the/DT
world/NN
./.
The/DT
only/JJ
reason/NN
that/DT
Somalia/NNP
remains/VBZ
in/IN
obscurity/NN
is/VBZ
numbers/NNS
:/:
a/DT
sparsely/RB
populated/JJ
wasteland/NN
of/IN
8.5/CD
million/CD
people/NNS
spread/VBN
out/RB
over/IN
an/DT
expanse/NN
nearly/RB
the/DT
size/NN
of/IN
Texas/NNP
./.
The/DT
Barre/NNP
dictatorship/NN
simply/RB
is/VBZ
limited/JJ
in/IN
the/DT
amount/NN
of/IN
people/NNS
it/PRP
can/MD
torture/VB
and/CC
kill/VB
./.
Beheading/VBG
small/JJ
children/NNS
,/,
stabbing/VBG
elderly/JJ
people/NNS
to/TO
death/NN
,/,
raping/VBG
and/CC
shooting/VBG
women/NNS
,/,
and/CC
burying/VBG
people/NNS
alive/RB
are/VBP
just/RB
a/DT
few/JJ
of/IN
the/DT
grisly/JJ
activities/NNS
that/IN
the/DT
Somali/JJ
armed/JJ
forces/NNS
have/VBP
been/VBN
engaged/VBN
in/IN
over/IN
the/DT
past/JJ
two/CD
years/NNS
./.
Up/IN
to/TO
500,000/CD
Somalis/NNPS
have/VBP
escaped/VBN
to/TO
the/DT
relative/JJ
safety/NN
of/IN
Marxist/JJ
Ethiopia/NNP
because/IN
of/IN
the/DT
behavior/NN
of/IN
President/NNP
Barre/NNP
's/POS
troops/NNS
./.
In/IN
the/DT
port/NN
of/IN
Berbera/NNP
,/,
for/IN
example/NN
,/,
hundreds/NNS
of/IN
men/NNS
of/IN
the/DT
rival/JJ
Issak/NNP
clan/NN
were/VBD
rounded/VBN
up/RB
in/IN
May/NNP
1988/CD
,/,
imprisoned/VBN
,/,
and/CC
then/RB
taken/VBN
out/RB
at/IN
night/NN
in/IN
groups/NNS
of/IN
five/CD
to/TO
50/CD
men/NNS
to/TO
be/VB
executed/VBN
without/IN
any/DT
judicial/JJ
process/NN
whatsoever/RB
./.
Guns/NNS
were/VBD
never/RB
used/VBN
:/:
Each/DT
man/NN
was/VBD
stabbed/VBN
to/TO
death/NN
with/IN
a/DT
large/JJ
knife/NN
./.
The/DT
horrific/JJ
details/NNS
are/VBP
only/RB
now/RB
emerging/VBG
from/IN
a/DT
painstakingly/RB
documented/VBN
report/NN
,/,
based/VBN
on/IN
hundreds/NNS
of/IN
interviews/NNS
with/IN
randomly/RB
selected/VBN
refugees/NNS
./.
The/DT
study/NN
was/VBD
done/VBN
by/IN
Robert/NNP
Gersony/NNP
,/,
a/DT
consultant/NN
to/TO
the/DT
U.S./NNP
State/NNP
Department/NNP
who/WP
has/VBZ
years/NNS
of/IN
experience/NN
in/IN
investigating/VBG
human-rights/JJ
abuses/NNS
on/IN
both/DT
sides/NNS
of/IN
the/DT
left-right/JJ
ideological/JJ
divide/NN
./.
What/WP
gives/VBZ
these/DT
events/NNS
particular/JJ
significance/NN
,/,
however/RB
,/,
is/VBZ
the/DT
fact/NN
that/IN
they/PRP
are/VBP
part/NN
of/IN
a/DT
wider/JJR
drama/NN
affecting/VBG
the/DT
strategic/JJ
positions/NNS
of/IN
both/DT
the/DT
U.S./NNP
and/CC
the/DT
Soviet/NNP
Union/NNP
on/IN
the/DT
horn/NN
of/IN
Africa/NNP
./.
Not/RB
since/IN
the/DT
late/JJ
1970s/NNS
has/VBZ
the/DT
horn/NN
been/VBN
so/RB
up/IN
for/IN
grabs/NNS
as/IN
it/PRP
has/VBZ
suddenly/RB
become/VBN
in/IN
just/RB
the/DT
past/JJ
few/JJ
weeks/NNS
./.
Mr./NNP
Barre/NNP
's/POS
rule/NN
is/VBZ
crumbling/VBG
fast/RB
./.
Mutinies/NNS
wrack/VBP
his/PRP$
armed/JJ
forces/NNS
an/DT
armed/JJ
gang/NN
which/WDT
control/VBP
less/JJR
than/IN
half/PDT
the/DT
country/NN
./.
Inflation/NN
is/VBZ
at/IN
record/NN
levels/NNS
./.
Desperate/JJ
,/,
he/PRP
has/VBZ
called/VBN
in/IN
the/DT
Libyans/NNPS
to/TO
help/VB
fight/VB
the/DT
rebels/NNS
of/IN
the/DT
Somali/NNP
National/NNP
Movement/NNP
in/IN
the/DT
north/NN
,/,
which/WDT
is/VBZ
only/RB
one/CD
of/IN
several/JJ
groups/NNS
picking/VBG
away/RB
at/IN
the/DT
regime/NN
in/IN
the/DT
capital/NN
of/IN
Mogadishu/NNP
./.
Seventy/CD
years/NNS
old/JJ
and/CC
a/DT
self-declared/JJ
``/``
scientific/JJ
socialist/NN
,/,
''/''
President/NNP
Barre/NNP
has/VBZ
a/DT
power/NN
base/NN
,/,
composed/VBN
only/RB
of/IN
his/PRP$
minority/NN
Mareham/NNP
clan/NN
,/,
that/IN
according/VBG
to/TO
observers/NNS
is/VBZ
``/``
narrowing/VBG
./.
''/''
The/DT
U.S./NNP
's/POS
interest/NN
in/IN
Somalia/NNP
consists/VBZ
of/IN
a/DT
single/JJ
runway/NN
at/IN
the/DT
port/NN
of/IN
Berbera/NNP
,/,
which/WDT
U.S./NNP
military/JJ
aircraft/NN
have/VBP
the/DT
right/NN
to/TO
use/VB
for/IN
surveillance/NN
of/IN
the/DT
Gulf/NNP
of/IN
Aden/NNP
and/CC
the/DT
Indian/NNP
Ocean/NNP
./.
That/DT
strip/NN
of/IN
concrete/NN
is/VBZ
backed/VBN
up/RB
by/IN
a/DT
few/JJ
one-story/JJ
,/,
air-conditioned/JJ
shacks/NNS
where/WRB
a/DT
handful/NN
of/IN
American/JJ
nationals/NNS
--/:
buttressed/VBN
by/IN
imported/VBN
food/NN
,/,
cold/JJ
soft/JJ
drinks/NNS
and/CC
back/JJ
issues/NNS
of/IN
Sports/NNPS
Illustrated/NNP
--/:
maintain/VBP
radio/NN
contact/NN
with/IN
the/DT
outside/JJ
world/NN
./.
In/IN
the/DT
past/JJ
two/CD
years/NNS
,/,
the/DT
desert/NN
behind/IN
them/PRP
has/VBZ
become/VBN
a/DT
land/NN
of/IN
mass/NN
executions/NNS
and/CC
utter/JJ
anarchy/NN
,/,
where/WRB
,/,
due/JJ
to/TO
Mr./NNP
Barre/NNP
's/POS
brutality/NN
and/CC
ineptitude/NN
,/,
nobody/NN
is/VBZ
any/RB
longer/RB
in/IN
control/NN
./.
As/RB
long/RB
as/IN
the/DT
rival/JJ
Soviet-backed/JJ
regime/NN
of/IN
Mengistu/NNP
Haile/NNP
Mariam/NNP
held/VBD
a/DT
total/JJ
gridlock/NN
over/IN
neighboring/VBG
Ethiopia/NNP
,/,
the/DT
U.S./NNP
was/VBD
forced/VBN
to/TO
accept/VB
that/DT
lonely/JJ
Berbera/NNP
runway/NN
as/IN
a/DT
distant/JJ
No./NN
2/CD
to/TO
the/DT
Soviets/NNPS
'/POS
array/NN
of/IN
airfields/NNS
next/IN
door/NN
./.
But/CC
due/RB
to/TO
dramatic/JJ
events/NNS
on/IN
the/DT
battlefield/NN
over/IN
the/DT
past/JJ
few/JJ
days/NNS
and/CC
weeks/NNS
,/,
those/DT
Soviet/JJ
bases/NNS
may/MD
soon/RB
be/VB
as/RB
endangered/VBN
and/CC
as/RB
lonely/JJ
as/IN
the/DT
American/JJ
runway/NN
On/IN
Sept./NNP
7/CD
,/,
I/PRP
wrote/VBD
on/IN
these/DT
pages/NNS
about/IN
the/DT
killing/VBG
and/CC
capturing/VBG
of/IN
10,000/CD
Ethiopian/JJ
soldiers/NNS
by/IN
Eritrean/JJ
and/CC
Tigrean/JJ
guerrillas/NNS
./.
Recently/RB
,/,
in/IN
Wollo/NNP
province/NN
in/IN
the/DT
center/NN
of/IN
Ethiopia/NNP
,/,
Tigrean/JJ
forces/NNS
have/VBP
killed/VBN
,/,
wounded/VBN
and/CC
captured/VBN
an/DT
additional/JJ
20,000/CD
government/NN
troops/NNS
./.
what/WP
these/DT
numbers/NNS
mean/VBP
--/:
considering/VBG
the/DT
headline/NN
space/NN
devoted/VBN
to/TO
hundreds/NNS
of/IN
deaths/NNS
in/IN
Lebanon/NNP
,/,
a/DT
small/JJ
country/NN
of/IN
little/JJ
strategic/JJ
importance/NN
!/.
)/)
Tigrean/JJ
armies/NNS
are/VBP
now/RB
200/CD
miles/NNS
north/RB
of/IN
Addis/NNP
Ababa/NNP
,/,
threatening/VBG
the/DT
town/NN
of/IN
Dese/NNP
,/,
which/WDT
would/MD
cut/VB
off/RP
Mr./NNP
Mengistu/NNP
's/POS
capital/NN
from/IN
the/DT
port/NN
of/IN
Assab/NNP
,/,
through/IN
which/WDT
all/DT
fuel/NN
and/CC
other/JJ
supplies/NNS
reach/VBP
Addis/NNP
Ababa/NNP
./.
As/IN
a/DT
result/NN
,/,
Mr./NNP
Mengistu/NNP
has/VBZ
been/VBN
forced/VBN
to/TO
transfer/VB
thousands/NNS
of/IN
troops/NNS
from/IN
Eritrea/NNP
just/RB
to/TO
hold/VB
the/DT
town/NN
,/,
thereby/RB
risking/VBG
the/DT
loss/NN
of/IN
even/RB
more/JJR
territory/NN
in/IN
Eritrea/NNP
only/RB
to/TO
keep/VB
the/DT
Tigreans/NNPS
at/IN
bay/NN
./.
Mr./NNP
Mengistu/NNP
is/VBZ
in/IN
an/DT
increasingly/RB
weak/JJ
position/NN
:/:
Half/PDT
his/PRP$
army/NN
is/VBZ
tied/VBN
down/RB
defending/VBG
the/DT
northern/JJ
city/NN
of/IN
Asmara/NNP
from/IN
the/DT
Eritreans/NNPS
./.
The/DT
weaker/JJR
he/PRP
gets/VBZ
,/,
the/DT
more/RBR
he/PRP
turns/VBZ
toward/IN
the/DT
U.S./NNP
for/IN
help/NN
./.
While/IN
the/DT
Tigreans/NNPS
are/VBP
communists/NNS
,/,
like/IN
the/DT
Eritreans/NNPS
they/PRP
are/VBP
among/IN
the/DT
most/RBS
anti-Soviet/JJ
guerrillas/NNS
in/IN
the/DT
world/NN
,/,
having/VBG
suffered/VBN
more/JJR
than/IN
a/DT
decade/NN
of/IN
aerial/JJ
bombardment/NN
by/IN
the/DT
Soviet-supplied/JJ
Mengistu/NNP
air/NN
force/NN
./.
What/WP
this/DT
all/DT
means/NNS
in/IN
shorthand/NN
is/VBZ
that/DT
Soviet/JJ
dominance/NN
in/IN
Ethiopia/NNP
is/VBZ
collapsing/VBG
as/RB
fast/RB
as/IN
President/NNP
Barre/NNP
's/POS
regime/NN
in/IN
Somalia/NNP
is/VBZ
./.
The/DT
U.S./NNP
,/,
therefore/RB
,/,
has/VBZ
a/DT
historic/JJ
opportunity/NN
both/DT
to/TO
strike/VB
a/DT
blow/NN
for/IN
human/JJ
rights/NNS
in/IN
Somalia/NNP
and/CC
to/TO
undo/VB
the/DT
superpower/NN
flip-flop/NN
of/IN
the/DT
late/JJ
1970s/NNS
on/IN
the/DT
Horn/NNP
of/IN
Africa/NNP
./.
Back/RB
to/TO
Somalia/NN
:/:
The/DT
State/NNP
Department/NNP
,/,
to/TO
its/PRP$
credit/NN
,/,
has/VBZ
already/RB
begun/VBN
distancing/VBG
itself/PRP
from/IN
Mr./NNP
Barre/NNP
,/,
evinced/VBN
by/IN
its/PRP$
decision/NN
to/TO
publish/VB
the/DT
Gersony/NNP
report/NN
which/WDT
the/DT
press/NN
has/VBZ
ignored/VBN
)/)
./.
What/WP
's/VBZ
more/JJR
,/,
the/DT
U.S./NNP
has/VBZ
suspended/VBN
$/$
2.5/CD
million/CD
in/IN
military/JJ
aid/NN
and/CC
$/$
1/CD
million/CD
in/IN
economic/JJ
aid/NN
./.
But/CC
this/DT
is/VBZ
not/RB
enough/JJ
./.
Because/IN
the/DT
U.S./NNP
is/VBZ
still/RB
perceived/VBN
to/TO
be/VB
tied/VBN
to/TO
Mr./NNP
Barre/NNP
,/,
when/WRB
he/PRP
goes/VBZ
the/DT
runway/NN
could/MD
go/VB
too/RB
./.
Considering/VBG
how/WRB
tenuous/JJ
the/DT
security/NN
of/IN
that/DT
runway/NN
is/VBZ
anyway/RB
,/,
the/DT
better/JJR
option/NN
--/:
both/DT
morally/RB
and/CC
strategically/RB
--/:
would/MD
be/VB
for/IN
the/DT
Bush/NNP
administration/NN
to/TO
blast/VB
the/DT
regime/NN
publicly/RB
,/,
in/IN
terms/NNS
clear/JJ
enough/RB
for/IN
all/DT

influential/JJ
Somalis/NNPS
to/TO
understand/VB
./.
It/PRP
is/VBZ
a/DT
certainty/NN
that/IN
Mr./NNP
Barre/NNP
's/POS
days/NNS
are/VBP
numbered/VBN
./.
The/DT
U.S./NNP
should/MD
take/VB
care/NN
,/,
however/RB
,/,
that/IN
its/PRP$
own/JJ
position/NN
in/IN
the/DT
country/NN
does/VBZ
not/RB
go/VB
down/RB
with/IN
him/PRP
./.
Nobody/NN
is/VBZ
sure/JJ
what/WP
will/MD
come/VB
next/JJ
in/IN
Somalia/NNP
or/CC
whom/WP
the/DT
successor/NN
might/MD
be/VB
./.
But/CC
as/IN
one/CD
expert/NN
tells/VBZ
me/PRP
:/:
``/``
Whoever/WP
it/PRP
is/VBZ
will/MD
have/VB
to/TO
work/VB
pretty/RB
damn/RB
hard/JJ
to/TO
be/VB
worse/JJR
than/IN
Barre/NNP
./.
''/''
While/IN
the/DT
State/NNP
Department/NNP
positions/VBZ
itself/PRP
for/IN
the/DT
post-Barre/JJ
period/NN
in/IN
Somalia/NNP
,/,
it/PRP
should/MD
continue/VB
to/TO
back/VB
former/JJ
President/NNP
Carter/NNP
's/POS
well-intentioned/JJ
role/NN
as/IN
a/DT
mediator/NN
between/IN
Mr./NNP
Mengistu/NNP
and/CC
the/DT
Eritrean/JJ
guerrillas/NNS
in/IN
Ethiopia/NNP
,/,
while/IN
concomitantly/RB
opening/VBG
up/RP
channels/NNS
of/IN
communications/NNS
with/IN
the/DT
Tigrean/JJ
rebels/NNS
through/IN
neighboring/VBG
Sudan/NNP
./.
Ethiopian/JJ
politics/NNS
are/VBP
the/DT
most/RBS
sophisticated/JJ
,/,
secretive/JJ
and/CC
Byzantine/JJ
in/IN
all/DT
of/IN
black/JJ
Africa/NNP
./.
Remember/VB
that/IN
it/PRP
took/VBD
Mr./NNP
Mengistu/NNP
many/JJ
months/NNS
,/,
in/IN
what/WP
became/VBD
known/VBN
as/IN
the/DT
``/``
creeping/VBG
coup/NN
,/,
''/''
to/TO
topple/VB
Emperor/NNP
Haile/NNP
Selassie/NNP
in/IN
1974/CD
and/CC
1975/CD
./.
There/EX
is/VBZ
simply/RB
no/DT
way/NN
to/TO
engineer/VB
a/DT
succession/NN
covertly/RB
,/,
as/IN
is/VBZ
sometimes/RB
possible/JJ
elsewhere/RB
on/IN
the/DT
continent/NN
./.
But/CC
the/DT
U.S./NNP
has/VBZ
one/CD
great/JJ
advantage/NN
:/:
The/DT
Soviets/NNPS
are/VBP
universally/RB
loathed/VBN
throughout/IN
Ethiopia/NN
for/IN
what/WP
they/PRP
did/VBD
to/TO
the/DT
country/NN
this/DT
past/JJ
decade/NN
--/:
famine/NN
and/CC
all/DT
./.
It/PRP
's/VBZ
not/RB
just/RB
in/IN
Eastern/NNP
Europe/NNP
where/WRB
the/DT
march/NN
of/IN
events/NNS
is/VBZ
finally/RB
on/IN
the/DT
U.S./NNP
side/NN
,/,
but/CC
on/IN
the/DT
horn/NN
of/IN
Africa/NNP
as/RB
well/RB
./.
The/DT
only/JJ
U.S./NNP
liability/NN
in/IN
the/DT
region/NN
is/VBZ
what/WP
remains/VBZ
of/IN
the/DT
link/NN
to/TO
Mr./NNP
Barre/NNP
,/,
and/CC
that/DT
should/MD
be/VB
cut/VBN
fast/RB
./.
Mr./NNP
Kaplan/NNP
,/,
author/NN
of/IN
``/``
Surrender/VB
or/CC
Starve/VB
:/:
The/DT
Wars/NNS
Behind/IN
the/DT
Famine/NN
''/''
(/(
Westview/NNP
Press/NNP
,/,
1988/CD
lives/VBZ
in/IN
Lisbon/NNP
./.
Translant/NNP
Inc./NNP
,/,
Rancho/NNP
Cucamonga/NNP
,/,
Calif./NNP
,/,
got/VBD
an/DT
$/$
86/CD
million/CD
Navy/NNP
contract/NN
for/IN
missile-launch/JJ
systems/NNS
./.
General/NNP
Electric/NNP
Co./NNP
received/VBD
a/DT
$/$
30.6/CD
million/CD
Air/NNP
Force/NNP
contract/NN
for/IN
MX-missile/NN
nose/NN
cones/NNS
./.
Goodyear/NNP
Tire/NNP
&/CC
Rubber/NNP
Co./NNP
was/VBD
awarded/VBN
a/DT
$/$
19.1/CD
million/CD
Army/NNP
contract/NN
for/IN
armored-vehicle/JJ
parts/NNS
./.
Analytic/NNP
Sciences/NNPS
Corp./NNP
was/VBD
awarded/VBN
a/DT
$/$
10.1/CD
million/CD
Air/NNP
Force/NNP
contract/NN
for/IN
technical/JJ
support/NN
./.
McCormick/NNP
Capital/NNP
Inc./NNP
said/VBD
the/DT
final/JJ
proration/JJ
factor/NN
was/VBD
0.628394/CD
on/IN
its/PRP$
oversubscribed/JJ
,/,
$/$
3-a-share/JJ
tender/NN
offer/NN
to/TO
buy/VB
back/RB
as/RB
many/JJ
as/IN
1.1/CD
million/CD
of/IN
its/PRP$
common/JJ
shares/NNS
./.
Payment/NN
will/MD
begin/VB
``/``
as/RB
soon/RB
as/IN
Oct./NNP
25/CD
,/,
''/''
the/DT
company/NN
said/VBD
./.
McCormick/NNP
is/VBZ
a/DT
developer/NN
and/CC
manager/NN
of/IN
futures-investment/JJ
limited/JJ
partnerships/NNS
./.
Through/IN
a/DT
separate/JJ
agreement/NN
between/IN
Peter/NNP
Dauchy/NNP
,/,
president/NN
,/,
and/CC
a/DT
group/NN
of/IN
selling/VBG
shareholders/NNS
,/,
the/DT
company/NN
said/VBD
,/,
Mr./NNP
Dauchy/NNP
will/MD
on/IN
Oct./NNP
30/CD
buy/VB
231,405/CD
shares/NNS
from/IN
the/DT
group/NN
,/,
boosting/VBG
his/PRP$
stake/NN
to/TO
about/IN
717,000/CD
shares/NNS
,/,
or/CC
50.7/CD
%/NN
of/IN
the/DT
total/NN
after/IN
the/DT
buy-back/NN
./.
Canada/NNP
's/POS
consumer/NN
price/NN
index/NN
rose/VBD
a/DT
seasonally/RB
adjusted/JJ
0.2/CD
%/NN
in/IN
September/NNP
from/IN
August/NNP
,/,
Statistics/NNPS
Canada/NNP
,/,
a/DT
federal/JJ
agency/NN
,/,
said/VBD
./.
The/DT
rise/NN
followed/VBD
boosts/NNS
of/IN
0.1/CD
%/NN
in/IN
August/NNP
,/,
0.7/CD
%/NN
in/IN
July/NNP
and/CC
0.6/CD
%/NN
in/IN
June/NNP
./.
OPEC/NNP
's/POS
ability/NN
to/TO
produce/VB
more/JJR
petroleum/NN
than/IN
it/PRP
can/MD
sell/VB
is/VBZ
beginning/VBG
to/TO
cast/VB
a/DT
shadow/NN
over/IN
world/NN
oil/NN
markets/NNS
./.
Output/NN
from/IN
the/DT
Organization/NNP
of/IN
Petroleum/NNP
Exporting/NNP
Countries/NNPS
is/VBZ
already/RB
at/IN
a/DT
high/JJ
for/IN
the/DT
year/NN
and/CC
most/JJS
member/NN
nations/NNS
are/VBP
running/VBG
flat/RB
out/RB
./.
But/CC
industry/NN
and/CC
OPEC/NNP
officials/NNS
agree/VBP
that/IN
a/DT
handful/NN
of/IN
members/NNS
still/RB
have/VB
enough/JJ
unused/JJ
capacity/NN
to/TO
glut/VB
the/DT
market/NN
and/CC
cause/VB
an/DT
oil-price/NN
collapse/NN
a/DT
few/JJ
months/NNS
from/IN
now/RB
if/IN
OPEC/NNP
does/VBZ
n't/RB
soon/RB
adopt/VB
a/DT
new/JJ
quota/NN
system/NN
to/TO
corral/VB
its/PRP$
chronic/JJ
cheaters/NNS
./.
As/IN
a/DT
result/NN
,/,
the/DT
effort/NN
by/IN
some/DT
oil/NN
ministers/NNS
to/TO
get/VB
OPEC/NNP
to/TO
approve/VB
a/DT
new/JJ
permanent/JJ
production-sharing/JJ
agreement/NN
next/JJ
month/NN
is/VBZ
taking/VBG
on/IN
increasing/VBG
urgency/NN
./.
The/DT
organization/NN
is/VBZ
scheduled/VBN
to/TO
meet/VB
in/IN
Vienna/NNP
beginning/VBG
Nov./NNP
25/CD
./.
So/RB
far/RB
this/DT
year/NN
,/,
rising/VBG
demand/NN
for/IN
OPEC/NNP
oil/NN
and/CC
production/NN
restraint/NN
by/IN
some/DT
members/NNS
have/VBP
kept/VBN
prices/NNS
firm/JJ
despite/IN
rampant/JJ
cheating/NN
by/IN
others/NNS
./.
But/CC
that/DT
could/MD
change/VB
if/IN
demand/NN
for/IN
OPEC/NNP
's/POS
oil/NN
softens/VBZ
seasonally/RB
early/JJ
next/JJ
year/NN
as/IN
some/DT
think/VBP
may/MD
happen/VB
./.
OPEC/NNP
is/VBZ
currently/RB
producing/VBG
more/JJR
than/IN
22/CD
million/CD
barrels/NNS
a/DT
day/NN
,/,
sharply/RB
above/IN
its/PRP$
nominal/JJ
,/,
self-imposed/JJ
fourth-quarter/JJ
ceiling/NN
of/IN
20.5/CD
million/CD
,/,
according/VBG
to/TO
OPEC/NNP
and/CC
industry/NN
officials/NNS
at/IN
an/DT
oil/NN
conference/NN
here/RB
sponsored/VBN
by/IN
the/DT
Oil/NNP
Daily/NNP
and/CC
the/DT
International/NNP
Herald/NNP
Tribune/NNP
./.
At/IN
that/DT
rate/NN
,/,
a/DT
majority/NN
of/IN
OPEC/NNP
's/POS
13/CD
members/NNS
have/VBP
reached/VBN
their/PRP$
output/NN
limits/NNS
,/,
they/PRP
said/VBD
./.
But/CC
it/PRP
is/VBZ
estimated/VBN
that/IN
at/IN
least/JJS
three/CD
million/CD
barrels/NNS
a/DT
day/NN
--/:
and/CC
possibly/RB
as/RB
much/JJ
as/IN
seven/CD
million/CD
barrels/NNS
a/DT
day/NN
--/:
of/IN
spare/JJ
capacity/NN
still/RB
exists/VBZ
within/IN
OPEC/NNP
./.
Most/JJS
is/VBZ
concentrated/VBN
in/IN
five/CD
Persian/NNP
Gulf/NNP
countries/NNS
,/,
including/VBG
his/PRP$
own/JJ
,/,
Issam/NNP
Al-Chalabi/NNP
,/,
Iraq/NNP
's/POS
oil/NN
minister/NN
,/,
told/VBD
the/DT
conference/NN
Friday/NNP
./.
He/PRP
puts/VBZ
OPEC/NNP
's/POS
current/JJ
capacity/NN
at/IN
28/CD
million/CD
to/TO
29/CD
million/CD
barrels/NNS
a/DT
day/NN
./.
That/DT
's/VBZ
higher/JJR
than/IN
some/DT
other/JJ
estimates/NNS
./.
Ali/NNP
Khalifa/NNP
Al-Sabah/NNP
,/,
Kuwait/NNP
's/POS
oil/NN
minister/NN
,/,
recently/RB
estimated/VBD
OPEC/NNP
capacity/NN
at/IN
25/CD
million/CD
barrels/NNS
a/DT
day/NN
./.
Either/DT
way/NN
,/,
the/DT
overhang/NN
is/VBZ
big/JJ
enough/RB
to/TO
keep/VB
delicately/RB
balanced/JJ
oil/NN
markets/NNS
on/IN
edge/NN
./.
Even/RB
modest/JJ
amounts/NNS
of/IN
additional/JJ
output/NN
by/IN
those/DT
with/IN
the/DT
huge/JJ
extra/JJ
capacity/NN
and/CC
reserves/NNS
,/,
such/JJ
as/IN
Saudi/NNP
Arabia/NNP
and/CC
Iraq/NNP
,/,
could/MD
upset/VB
the/DT
market/NN
./.
The/DT
Iraqi/JJ
oil/NN
minister/NN
and/CC
Saudi/JJ
oil/NN
minister/NN
Hisham/NNP
Nazer/NNP
insisted/VBD
in/IN
their/PRP$
comments/NNS
to/TO
the/DT
conference/NN
that/IN
their/PRP$
countries/NNS
would/MD
act/VB
responsibly/RB
to/TO
maintain/VB
a/DT
stable/JJ
market/NN
./.
However/RB
,/,
in/IN
interviews/NNS
later/RBR
,/,
both/DT
ministers/NNS
stressed/VBD
that/IN
they/PRP
expect/VBP
future/JJ
OPEC/NNP
quotas/NNS
to/TO
be/VB
based/VBN
mainly/RB
on/IN
the/DT
production/NN
capacity/NN
and/CC
reserves/NNS
of/IN
each/DT
member/NN
./.
Under/IN
that/DT
approach/NN
,/,
countries/NNS
with/IN
the/DT
most/RBS
unused/JJ
oil/NN
capacity/NN
would/MD
get/VB
bigger/JJR
shares/NNS
of/IN
any/DT
future/JJ
increases/NNS
in/IN
OPEC/NNP
's/POS
production/NN
ceiling/NN
than/IN
they/PRP
would/MD
under/IN
the/DT
current/JJ
system/NN
./.
``/``
If/IN
you/PRP
are/VBP
already/RB
producing/VBG
at/IN
95/CD
%/NN
or/CC
100/CD
%/NN
of/IN
your/PRP$
capacity/NN
,/,
what/WP
's/VBZ
the/DT
good/JJ
to/TO
be/VB
told/VBN
you/PRP
can/MD
produce/VB
at/IN
105/CD
%/NN
of/IN
capacity/NN
?/.
''/''
asked/VBD
Mr./NNP
Al-Chalabi/NNP
./.
At/IN
an/DT
inconclusive/JJ
Geneva/NNP
meeting/NN
late/JJ
last/JJ
month/NN
,/,
OPEC/NNP
's/POS
oil/NN
ministers/NNS
halfheartedly/RB
approved/VBD
another/DT
increase/NN
of/IN
one/CD
million/CD
barrels/NNS
a/DT
day/NN
in/IN
their/PRP$
production/NN
ceiling/NN
./.
They/PRP
doled/VBD
it/PRP
out/RP
using/VBG
the/DT
existing/VBG
formula/NN
,/,
however/RB
,/,
which/WDT
meant/VBD
that/IN
even/RB
those/DT
countries/NNS
that/WDT
could/MD
n't/RB
produce/VB
more/JJR
received/VBD
higher/JJR
official/JJ
allotments/NNS
./.
The/DT
main/JJ
effect/NN
of/IN
the/DT
ceiling/NN
boost/NN
was/VBD
to/TO
``/``
legitimize/VB
''/''
some/DT
of/IN
the/DT
overproduction/NN
already/RB
coming/VBG
from/IN
the/DT
quota/NN
cheaters/NNS
./.
Still/RB
,/,
there/EX
was/VBD
a/DT
breakthrough/NN
at/IN
Geneva/NNP
./.
Previously/RB
,/,
no/DT
OPEC/NNP
member/NN
had/VBD
been/VBN
willing/JJ
to/TO
accept/VB
a/DT
reduction/NN
in/IN
its/PRP$
percentage/NN
share/NN
of/IN
the/DT
group/NN
's/POS
total/JJ
output/NN
target/NN
,/,
or/CC
ceiling/NN
./.
But/CC
the/DT
concept/NN
of/IN
disproportionate/JJ
quotas/NNS
for/IN
those/DT
with/IN
unused/JJ
capacity/NN
,/,
advanced/VBN
there/RB
in/IN
an/DT
Iranian/JJ
proposal/NN
,/,
was/VBD
generally/RB
endorsed/VBN
by/IN
the/DT
ministers/NNS
./.
In/IN
the/DT
end/NN
politics/NNS
got/VBD
in/IN
the/DT
way/NN
./.
Libya/NNP
accepted/VBD
Iran/NNP
's/POS
proposal/NN
only/RB
so/RB
long/RB
as/IN
it/PRP
was/VBD
promised/VBN
production/NN
parity/NN
with/IN
Kuwait/NNP
./.
And/CC
the/DT
United/NNP
Arab/NNP
Emirates/NNPS
,/,
a/DT
chronic/JJ
quota/NN
cheater/NN
,/,
refused/VBD
to/TO
give/VB
any/DT
guarantee/NN
it/PRP
would/MD
change/VB
its/PRP$
ways/NNS
./.
But/CC
the/DT
oil/NN
ministers/NNS
continue/VBP
to/TO
study/VB
the/DT
plan/NN
,/,
and/CC
it/PRP
will/MD
probably/RB
be/VB
the/DT
basis/NN
for/IN
discussion/NN
at/IN
next/JJ
month/NN
's/POS
meeting/NN
./.
It/PRP
's/VBZ
understood/VBN
several/JJ
compromises/NNS
already/RB
have/VBP
been/VBN
worked/VBN
into/IN
the/DT
plan/NN
./.
The/DT
ceiling/NN
would/MD
be/VB
lifted/VBN
to/TO
21.5/CD
million/CD
barrels/NNS
to/TO
provide/VB
Kuwait/NNP
and/CC
the/DT
United/NNP
Arab/NNP
Emirates/NNP
much/RB
higher/JJR
official/JJ
quotas/NNS
while/IN
reducing/VBG
percentage/NN
shares/NNS
of/IN
some/DT
others/NNS
./.
Libya/NNP
's/POS
previous/JJ
conditions/NNS
are/VBP
no/RB
longer/RB
considered/VBN
a/DT
problem/NN
,/,
although/IN
the/DT
United/NNP
Arab/NNP
Emirates/NNPS
is/VBZ
still/RB
an/DT
issue/NN
./.
Saudi/NNP
Arabia/NNP
,/,
OPEC/NNP
's/POS
kingpin/NN
,/,
also/RB
has/VBZ
surfaced/VBN
as/IN
a/DT
possible/JJ
obstacle/NN
,/,
some/DT
OPEC/NNP
sources/NNS
said/VBD
./.
Insisting/VBG
on/IN
a/DT
24.5/CD
%/NN
share/NN
of/IN
any/DT
ceiling/NN
,/,
Saudi/JJ
officials/NNS
have/VBP
long/RB
pressed/VBN
for/IN
the/DT
pro/JJ
rata/JJ
distribution/NN
of/IN
increases/NNS
to/TO
all/DT
members/NNS
./.
In/IN
Geneva/NNP
,/,
however/RB
,/,
they/PRP
supported/VBD
Iran/NNP
's/POS
proposal/NN
because/IN
it/PRP
would/MD
have/VB
left/VBN
the/DT
Saudi/JJ
percentage/NN
of/IN
the/DT
OPEC/NNP
total/NN
intact/JJ
,/,
and/CC
increased/VBD
actual/JJ
Saudi/JJ
volume/NN
to/TO
nearly/RB
5.3/CD
million/CD
barrels/NNS
daily/RB
from/IN
five/CD
million/CD
./.
Some/DT
of/IN
the/DT
proposed/VBN
modifications/NNS
since/RB
,/,
however/RB
,/,
call/VBP
on/IN
Saudi/NNP
Arabia/NNP
to/TO
``/``
give/VB
back/RB
''/''
to/TO
the/DT
production-sharing/JJ
pool/NN
a/DT
token/JJ
23,000/CD
barrels/NNS
./.
Though/IN
tiny/JJ
,/,
that/DT
's/VBZ
a/DT
reduction/NN
in/IN
its/PRP$
share/NN
./.
Mr./NNP
Nazer/NNP
,/,
the/DT
Saudi/JJ
oil/NN
minister/NN
,/,
reiterated/VBD
here/RB
that/IN
the/DT
kingdom/NN
would/MD
insist/VB
on/IN
maintaining/VBG
its/PRP$
percentage/NN
share/NN
of/IN
OPEC/NNP
production/NN
under/IN
any/DT
quota/NN
revisions/NNS
./.
``/``
Under/IN
any/DT
circumstances/NNS
,/,
Saudi/NNP
Arabia/NNP
should/MD
get/VB
more/JJR
''/''
rather/RB
than/IN
less/JJR
,/,
Mr./NNP
Nazer/NNP
said/VBD
./.
In/IN
a/DT
blow/NN
to/TO
France/NNP
's/POS
Rafale/NNP
jet/NN
fighter/NN
,/,
the/DT
French/JJ
navy/NN
for/IN
the/DT
first/JJ
time/NN
publicly/RB
stated/VBD
its/PRP$
desire/NN
to/TO
buy/VB
15/CD
McDonnell/NNP
Douglas/NNP
Corp./NNP
F-18/NN
Hornets/NNPS
to/TO
defend/VB
its/PRP$
aircraft/NN
carriers/NNS
./.
The/DT
statement/NN
is/VBZ
likely/JJ
to/TO
sharpen/VB
the/DT
debate/NN
within/IN
France/NNP
's/POS
military/JJ
establishment/NN
over/IN
the/DT
Rafale/NNP
,/,
which/WDT
is/VBZ
made/VBN
by/IN
Avions/NNP
Marcel/NNP
Dassault-Breguet/NNP
Aviation/NNP
SA/NNP
./.
In/IN
an/DT
interview/NN
in/IN
the/DT
navy/NN
's/POS
official/JJ
weekly/JJ
magazine/NN
Cols/NNP
Bleus/NNP
,/,
the/DT
navy/NN
's/POS
second-in-command/NN
,/,
Adm./NNP
Yves/NNP
Goupil/NNP
,/,
said/VBD
the/DT
navy/NN
still/RB
intends/VBZ
to/TO
buy/VB
86/CD
Rafales/NNPS
as/IN
scheduled/VBN
in/IN
the/DT
late/JJ
1990s/NNS
and/CC
early/RB
21st/CD
century/NN
./.
The/DT
air/NN
force/NN
is/VBZ
to/TO
take/VB
at/IN
least/JJS
250/CD
more/JJR
./.
Adm./NNP
Goupil/NNP
said/VBD
the/DT
navy/NN
ca/MD
n't/RB
wait/VB
until/IN
1998/CD
,/,
when/WRB
the/DT
naval/JJ
Rafale/NNP
becomes/VBZ
available/JJ
,/,
to/TO
replace/VB
its/PRP$
obsolete/JJ
fleet/NN
of/IN
American-made/JJ
Crusaders/NNPS
,/,
used/VBN
since/IN
the/DT
1950s/NNS
to/TO
protect/VB
carriers/NNS
from/IN
attack/NN
./.
Rather/RB
than/IN
renovate/VB
the/DT
Crusaders/NNPS
,/,
which/WDT
Dassault/NNP
is/VBZ
proposing/VBG
to/TO
do/VB
for/IN
around/IN
1.8/CD
billion/CD
French/JJ
francs/NNS
$/$
286.6/CD
million/CD
Adm./NNP
Goupil/NNP
said/VBD
the/DT
navy/NN
wants/VBZ
to/TO
buy/VB
used/JJ
F-18s/NNS
from/IN
the/DT
U.S./NNP
Navy/NNP
./.
Officially/RB
,/,
the/DT
statement/NN
is/VBZ
n't/RB
an/DT
attack/NN
on/IN
the/DT
Rafale/NNP
./.
Adm./NNP
Goupil/NNP
said/VBD
that/IN
when/WRB
the/DT
F-18s/NNS
wear/VBP
out/RP
,/,
the/DT
navy/NN
is/VBZ
prepared/JJ
to/TO
take/VB
Rafales/NNPS
to/TO
replace/VB
them/PRP
./.
But/CC
unofficially/RB
,/,
senior/JJ
navy/NN
officials/NNS
sharply/RB
criticize/VBP
the/DT
Rafale/NNP
as/IN
an/DT
air/NN
force/NN
plane/NN
ill-suited/JJ
to/TO
carrier/NN
use/NN
./.
Although/IN
they/PRP
never/RB
said/VBD
so/RB
publicly/RB
,/,
they/PRP
have/VBP
made/VBN
no/DT
secret/NN
of/IN
their/PRP$
preference/NN
for/IN
the/DT
F-18/NN
on/IN
operational/JJ
grounds/NNS
./.
Adm./NNP
Goupil/NNP
's/POS
comments/NNS
are/VBP
likely/JJ
to/TO
inflame/VB
the/DT
broader/JJR
dispute/NN
within/IN
the/DT
military/JJ
establishment/NN
here/RB
over/IN
the/DT
role/NN
of/IN
Dassault/NNP
./.
Although/IN
government-controlled/JJ
,/,
Dassault/NNP
still/RB
is/VBZ
run/VBN
by/IN
the/DT
founder/NN
's/POS
son/NN
,/,
Chairman/NNP
Serge/NNP
Dassault/NNP
,/,
who/WP
has/VBZ
fiercely/RB
protected/VBN
his/PRP$
company/NN
's/POS
independence/NN
./.
The/DT
Rafale/NNP
project/NN
is/VBZ
the/DT
result/NN
of/IN
France/NNP
's/POS
inability/NN
jointly/RB
to/TO
develop/VB
a/DT
plane/NN
with/IN
other/JJ
countries/NNS
,/,
and/CC
French/JJ
officials/NNS
question/VBP
whether/IN
the/DT
state/NN
can/MD
continue/VB
paying/VBG
for/IN
expensive/JJ
independent/JJ
programs/NNS
./.
So/RB
far/RB
,/,
Mr./NNP
Dassault/NNP
has/VBZ
resisted/VBN
pressure/NN
to/TO
change/VB
./.
What/WP
brought/VBD
the/DT
naval/JJ
issue/NN
to/TO
a/DT
head/NN
is/VBZ
that/IN
the/DT
Crusaders/NNPS
are/VBP
literally/RB
falling/VBG
apart/RB
,/,
without/IN
any/DT
immediate/JJ
plan/NN
to/TO
replace/VB
them/PRP
./.
Adm./NNP
Goupil/NNP
,/,
a/DT
former/JJ
Crusader/NNP
squadron/NN
leader/NN
,/,
said/VBD
that/IN
the/DT
last/JJ
other/JJ
country/NN
to/TO
use/VB
Crusaders/NNPS
,/,
the/DT
Philippines/NNPS
,/,
retired/VBD
its/PRP$
last/JJ
ones/NNS
two/CD
years/NNS
ago/RB
./.
A/DT
French/JJ
Crusader/NNP
crash/NN
a/DT
few/JJ
months/NNS
ago/RB
heightened/VBD
pressure/NN
for/IN
new/JJ
planes/NNS
here/RB
./.
Adm./NNP
Goupil/NNP
rejected/VBD
Dassault/NN
's/POS
proposal/NN
to/TO
renovate/VB
the/DT
Crusaders/NNPS
,/,
saying/VBG
the/DT
cost/NN
was/VBD
impossible/JJ
to/TO
estimate/VB
./.
Even/RB
modernized/JJ
,/,
he/PRP
said/VBD
,/,
the/DT
Crusaders/NNPS
represent/VBP
an/DT
obsolete/JJ
and/CC
dangerous/JJ
protection/NN
for/IN
the/DT
aircraft/NN
carriers/NNS
France/NNP
has/VBZ
sent/VBN
to/TO
meet/VB
such/JJ
crises/NNS
as/IN
the/DT
wars/NNS
in/IN
Lebanon/NNP
and/CC
the/DT
Persian/NNP
Gulf/NNP
./.
Defense/NNP
Minister/NNP
Jean-Pierre/NNP
Chevenement/NNP
told/VBD
a/DT
meeting/NN
of/IN
the/DT
Anglo-American/NNP
Press/NNP
Association/NNP
that/IN
the/DT
question/NN
of/IN
modernizing/VBG
the/DT
Crusaders/NNPS
or/CC
buying/NN
used/JJ
F18s/NNS
is/VBZ
a/DT
``/``
political/JJ
''/''
decision/NN
that/IN
he/PRP
will/MD
make/VB
in/IN
due/JJ
time/NN
./.
THE/DT
SUPREME/NNP
COURT/NNP
ruling/NN
upholding/VBG
Missouri/NNP
's/POS
restrictive/JJ
abortion/NN
law/NN
was/VBD
Webster/NNP
vs./FW
Reproductive/NNP
Health/NNP
Services/NNPS
./.
The/DT
citation/NN
was/VBD
misstated/VBN
in/IN
Friday/NNP
's/POS
edition/NN
./.
Pro-Choice/JJ
Power/NN
:/:
Abortion/NN
Issue/NN
Erodes/VBZ
Conservative/JJ
Loyalty/NN
to/TO
New/NNP
Jersey/NNP
GOP/NNP
--/:
The/DT
Right/NNP
's/POS
Social/JJ
Agenda/NN
Is/VBZ
a/DT
Liability/NN
as/IN
Republican/NNP
Lags/VBZ
in/IN
Governer/NNP
's/POS
Race/NN
--/:
Also/RB
Unpopular/JJ
:/:
Toxic/JJ
Waste/NN
''/''
--/:
WSJ/NNP
Oct./NNP
20/CD
,/,
1989/CD
)/)
Spending/VBG
by/IN
average/JJ
Japanese/JJ
households/NNS
in/IN
August/NNP
fell/VBD
an/DT
adjusted/JJ
1.9/CD
%/NN
from/IN
a/DT
year/NN
earlier/RB
,/,
the/DT
Statistics/NNPS
Bureau/NNP
of/IN
the/DT
Prime/NNP
Minister/NNP
's/POS
Office/NN
said/VBD
./.
The/DT
bureau/NN
cited/VBD
typhoons/NNS
in/IN
the/DT
month/NN
that/WDT
discouraged/VBD
shopping/NN
and/CC
leisure/NN
opportunities/NNS
./.
Spending/NN
by/IN
Japanese/JJ
households/NNS
averaged/VBD
290,782/CD
yen/NNS
$/$
2,052.10/CD
August/NNP
./.
In/IN
nominal/JJ
terms/NNS
it/PRP
rose/VBD
0.6/CD
%/NN
from/IN
a/DT
year/NN
earlier/RB
before/IN
adjustment/NN
./.
August/NNP
adjusted/JJ
spending/NN
by/IN
wage-earning/JJ
families/NNS
was/VBD
down/RB
0.6/CD
%/NN
to/TO
309,381/CD
yen/NNS
from/IN
a/DT
year/NN
earlier/RB
./.
The/DT
real/JJ
income/NN
of/IN
wage-earning/JJ
families/NNS
in/IN
the/DT
month/NN
eased/VBD
1.2/CD
%/NN
to/TO
438,845/CD
yen/NNS
from/IN
the/DT
previous/JJ
year/NN
./.
For/IN
Cathay/NNP
Pacific/NNP
Airways/NNPS
,/,
the/DT
smooth/JJ
ride/NN
may/MD
be/VB
ending/VBG
./.
The/DT
first/JJ
signs/NNS
of/IN
trouble/NN
came/VBD
last/JJ
month/NN
when/WRB
the/DT
Hong/NNP
Kong/NNP
carrier/NN
,/,
a/DT
subsidiary/NN
of/IN
Swire/NNP
Pacific/NNP
Ltd./NNP
,/,
posted/VBD
a/DT
5/CD
%/NN
drop/NN
in/IN
operating/NN
profit/NN
for/IN
the/DT
first/JJ
six/CD
months/NNS
and/CC
warned/VBD
that/IN
margins/NNS
will/MD
remain/VB
under/IN
pressure/NN
for/IN
the/DT
rest/NN
of/IN
the/DT
year/NN
./.
Securities/NNS
analysts/NNS
,/,
many/DT
of/IN
whom/WP
scrapped/VBD
their/PRP$
buy/JJ
recommendations/NNS
after/IN
seeing/VBG
Cathay/NNP
's/POS
interim/JJ
figures/NNS
,/,
believe/VBP
more/JJR
jolts/NNS
lie/VBP
ahead/RB
./.
Fuel/NN
and/CC
personnel/NN
costs/NNS
are/VBP
rising/VBG
,/,
and/CC
tourism/NN
in/IN
and/CC
through/IN
Hong/NNP
Kong/NNP
remains/VBZ
clouded/JJ
by/IN
China/NNP
's/POS
turmoil/NN
since/IN
the/DT
June/NNP
4/CD
killings/NNS
in/IN
Beijing/NNP
./.
In/IN
addition/NN
,/,
delivery/NN
delays/NNS
for/IN
the/DT
first/JJ
two/CD
of/IN
as/RB
many/JJ
as/IN
28/CD
Boeing/NNP
747-400s/NNS
that/IN
the/DT
carrier/NN
has/VBZ
ordered/VBN
have/VBP
raised/VBN
costs/NNS
because/IN
personnel/NNS
had/VBD
been/VBN
hired/VBN
to/TO
man/VB
the/DT
planes/NNS
./.
And/CC
tough/JJ
competition/NN
in/IN
the/DT
air-freight/JJ
market/NN
is/VBZ
cutting/VBG
into/IN
an/DT
important/JJ
sideline/NN
./.
There/EX
also/RB
is/VBZ
concern/NN
that/IN
once/RB
Hong/NNP
Kong/NNP
reverts/VBZ
to/TO
China/NNP
's/POS
sovereignty/NN
in/IN
1997/CD
,/,
Cathay/NNP
will/MD
be/VB
forced/VBN
to/TO
play/VB
second/JJ
fiddle/NN
to/TO
China/NNP
's/POS
often-disparaged/JJ
flag/NN
carrier/NN
,/,
Civil/NNP
Aviation/NNP
Administration/NNP
of/IN
China/NNP
,/,
or/CC
CAAC/NNP
./.
``/``
The/DT
sense/NN
is/VBZ
we/PRP
would/MD
never/RB
be/VB
in/IN
a/DT
position/NN
again/RB
where/WRB
everything/NN
works/VBZ
for/IN
us/PRP
the/DT
way/NN
it/PRP
did/VBD
before/RB
,/,
''/''
says/VBZ
Rod/NNP
Eddington/NNP
,/,
Cathay/NNP
's/POS
commercial/JJ
director/NN
./.
Sarah/NNP
Hall/NNP
,/,
an/DT
analyst/NN
at/IN
James/NNP
Capel/NNP
Far/NNP
East/NNP
Ltd./NNP
,/,
says/VBZ
there/EX
is/VBZ
n't/RB
much/JJ
Cathay/NNP
can/MD
do/VB
about/IN
rising/VBG
costs/NNS
for/IN
jet/NN
fuel/NN
,/,
Hong/NNP
Kong/NNP
's/POS
tight/JJ
labor/NN
market/NN
,/,
or/CC
the/DT
strengthening/NN
of/IN
the/DT
local/JJ
currency/NN
,/,
which/WDT
is/VBZ
pegged/VBN
to/TO
the/DT
U.S./NNP
dollar/NN
./.
These/DT
factors/NNS
are/VBP
further/RBR
complicated/VBN
by/IN
the/DT
airline/NN
's/POS
push/NN
to/TO
transform/VB
itself/PRP
from/IN
a/DT
regional/JJ
carrier/NN
to/TO
an/DT
international/JJ
one/NN
,/,
Ms./NNP
Hall/NNP
says/VBZ
./.
Ms./NNP
Hall/NNP
expects/VBZ
Cathay/NNP
's/POS
profit/NN
to/TO
grow/VB
around/IN
13/CD
%/NN
annually/RB
this/DT
year/NN
and/CC
next/JJ
./.
In/IN
1988/CD
,/,
it/PRP
earned/VBD
$/$
2.82/CD
billion/CD
Hong/NNP
Kong/NNP
US$/$
361.5/CD
million/CD
revenue/NN
of/IN
HK$/$
11.79/CD
billion/CD
./.
Cathay/NNP
is/VBZ
taking/VBG
several/JJ
steps/NNS
to/TO
bolster/VB
business/NN
./.
One/CD
step/NN
is/VBZ
to/TO
beef/VB
up/RP
its/PRP$
fleet/NN
./.
In/IN
addition/NN
to/TO
aircraft/NN
from/IN
Boeing/NNP
Co./NNP
,/,
Cathay/NNP
announced/VBD
earlier/RBR
this/DT
year/NN
an/DT
order/NN
for/IN
as/RB
many/JJ
as/IN
20/CD
Airbus/NNP
A330-300s/NNS
./.
The/DT
expansion/NN
,/,
which/WDT
could/MD
cost/VB
as/RB
much/JJ
as/IN
US$/$
5.7/CD
billion/CD
over/IN
the/DT
next/JJ
eight/CD
years/NNS
,/,
will/MD
expand/VB
the/DT
fleet/NN
to/TO
about/IN
43/CD
planes/NNS
by/IN
1991/CD
,/,
up/RB
from/IN
30/CD
at/IN
the/DT
end/NN
of/IN
last/JJ
year/NN
,/,
according/VBG
to/TO
Sun/NNP
Hung/NNP
Kai/NNP
Securities/NNPS
Ltd/NNP
./.
The/DT
fuel-efficient/JJ
Airbus/NNP
planes/NNS
will/MD
be/VB
used/VBN
largely/RB
to/TO
replace/VB
Cathay/NNP
's/POS
aging/VBG
fleet/NN
of/IN
Lockheed/NNP
Tristars/NNPS
for/IN
regional/JJ
flights/NNS
,/,
while/IN
the/DT
Boeing/NNP
aircraft/NN
will/MD
be/VB
used/VBN
on/IN
long-haul/JJ
routes/NNS
to/TO
Europe/NNP
and/CC
North/NNP
America/NNP
./.
Cathay/NNP
also/RB
is/VBZ
moving/VBG
some/DT
of/IN
its/PRP$
labor-intensive/JJ
data-processing/NN
operations/NNS
outside/IN
Hong/NNP
Kong/NNP
./.
Fierce/JJ
bidding/NN
for/IN
young/JJ
employees/NNS
in/IN
Hong/NNP
Kong/NNP
is/VBZ
pushing/VBG
up/RP
Cathay/NNP
's/POS
labor/NN
costs/NNS
by/IN
20/CD
%/NN
a/DT
year/NN
for/IN
low-level/JJ
staff/NN
,/,
while/IN
experienced/JJ
,/,
skilled/JJ
employees/NNS
are/VBP
leaving/VBG
the/DT
colony/NN
as/IN
part/NN
of/IN
the/DT
brain/NN
drain/NN
./.
Some/DT
jobs/NNS
already/RB
have/VBP
been/VBN
moved/VBN
to/TO
Australia/NNP
,/,
and/CC
there/EX
are/VBP
plans/NNS
to/TO
place/VB
others/NNS
in/IN
Canada/NNP
./.
David/NNP
Bell/NNP
,/,
a/DT
spokesman/NN
for/IN
the/DT
airline/NN
,/,
says/VBZ
the/DT
move/NN
is/VBZ
partly/RB
aimed/VBN
at/IN
retaining/VBG
existing/VBG
staff/NN
who/WP
are/VBP
leaving/VBG
to/TO
secure/VB
foreign/JJ
passports/NNS
ahead/RB
of/IN
1997/CD
./.
Cathay/NNP
is/VBZ
working/VBG
to/TO
promote/VB
Hong/NNP
Kong/NNP
as/IN
a/DT
destination/NN
worth/JJ
visiting/VBG
on/IN
its/PRP$
own/JJ
merits/NNS
,/,
rather/RB
than/IN
just/RB
a/DT
stopover/NN
./.
Although/IN
the/DT
June/NNP
4/CD
killings/NNS
in/IN
Beijing/NNP
have/VBP
hurt/VBN
its/PRP$
China/NNP
flights/NNS
,/,
Cathay/NNP
's/POS
other/JJ
routes/NNS
have/VBP
retained/VBN
high/JJ
load/NN
factors/NNS
./.
Mr./NNP
Eddington/NNP
regards/VBZ
promoting/VBG
Hong/NNP
Kong/NNP
as/IN
an/DT
important/JJ
part/NN
of/IN
attracting/VBG
visitors/NNS
from/IN
Japan/NNP
,/,
South/NNP
Korea/NNP
and/CC
Taiwan/NNP
,/,
where/WRB
the/DT
number/NN
of/IN
people/NNS
looking/VBG
to/TO
travel/VB
abroad/RB
has/VBZ
surged/VBN
./.
There/EX
also/RB
has/VBZ
been/VBN
speculation/NN
that/IN
Cathay/NNP
will/MD
be/VB
among/IN
the/DT
major/JJ
private-sector/NN
participants/NNS
in/IN
the/DT
Hong/NNP
Kong/NNP
government/NN
's/POS
plans/NNS
to/TO
build/VB
a/DT
new/JJ
airport/NN
,/,
with/IN
the/DT
carrier/NN
possibly/RB
investing/VBG
in/IN
its/PRP$
own/JJ
terminal/NN
./.
Cathay/NNP
officials/NNS
decline/VBP
to/TO
comment/VB
on/IN
the/DT
speculation/NN
./.
Mr./NNP
Eddington/NNP
sees/VBZ
alliances/NNS
with/IN
other/JJ
carriers/NNS
--/:
particularly/RB
Cathay/NNP
's/POS
recent/JJ
link/NN
with/IN
AMR/NNP
Corp./NNP
's/POS
American/NNP
Airlines/NNPS
--/:
as/IN
an/DT
important/JJ
part/NN
of/IN
Cathay/NNP
's/POS
strategy/NN
./.
But/CC
he/PRP
emphasizes/VBZ
that/IN
Cathay/NNP
has/VBZ
n't/RB
any/DT
interest/NN
in/IN
swapping/VBG
equity/NN
stakes/NNS
with/IN
the/DT
U.S./NNP
carrier/NN
or/CC
with/IN
Lufthansa/NNP
,/,
the/DT
West/JJ
German/JJ
airline/NN
with/IN
which/WDT
it/PRP
has/VBZ
cooperated/VBN
for/IN
about/IN
a/DT
decade/NN
./.
Analysts/NNS
believe/VBP
Cathay/NNP
is/VBZ
approached/VBN
for/IN
such/JJ
swaps/NNS
by/IN
other/JJ
carriers/NNS
on/IN
a/DT
regular/JJ
basis/NN
,/,
particularly/RB
as/IN
the/DT
popularity/NN
of/IN
share/NN
exchanges/NNS
has/VBZ
grown/VBN
among/IN
European/JJ
carriers/NNS
./.
``/``
We/PRP
think/VBP
alliances/NNS
are/VBP
very/RB
important/JJ
,/,
''/''
Mr./NNP
Eddington/NNP
says/VBZ
./.
``/``
But/CC
we/PRP
'd/MD
rather/RB
put/VB
funds/NNS
into/IN
our/PRP$
own/JJ
business/NN
rather/RB
than/IN
someone/NN
else/NN
's/POS
./.
I/PRP
'm/VBP
not/RB
sure/JJ
cross-ownership/NN
would/MD
necessarily/RB
make/VB
things/NNS
smoother/JJR
./.
''/''
In/IN
a/DT
pattern/NN
it/PRP
aims/VBZ
to/TO
copy/VB
in/IN
several/JJ
key/JJ
U.S./NNP
destinations/NNS
,/,
Cathay/NNP
recently/RB
announced/VBD
plans/NNS
to/TO
serve/VB
San/NNP
Francisco/NNP
by/IN
flying/VBG
into/IN
American/NNP
Airlines/NNPS
'/POS
Los/NNP
Angeles/NNP
hub/NN
and/CC
routing/VBG
continuing/VBG
passengers/NNS
onto/IN
a/DT
flight/NN
on/IN
the/DT
U.S./NNP
carrier/NN
./.
``/``
We/PRP
'll/MD
never/RB
have/VB
a/DT
big/JJ
operation/NN
in/IN
the/DT
U.S./NNP
,/,
and/CC
they/PRP
'll/MD
never/RB
have/VB
one/NN
as/RB
big/JJ
as/IN
us/PRP
in/IN
the/DT
Pacific/NNP
,/,
''/''
Mr./NNP
Eddington/NNP
says/VBZ
./.
``/``
But/CC
this/DT
way/NN
,/,
American/NNP
will/MD
coordinate/VB
good/JJ
extensions/NNS
to/TO
Boston/NNP
,/,
New/NNP
York/NNP
,/,
Chicago/NNP
and/CC
Dallas/NNP
./.
We/PRP
'll/MD
coordinate/VB
on/IN
this/DT
end/NN
to/TO
places/NNS
like/IN
Bangkok/NNP
,/,
Singapore/NNP
and/CC
Manila/NNP
./.
''/''
Asian/JJ
traffic/NN
,/,
which/WDT
currently/RB
accounts/VBZ
for/IN
65/CD
%/NN
of/IN
Cathay/NNP
's/POS
business/NN
,/,
is/VBZ
expected/VBN
to/TO
continue/VB
as/IN
the/DT
carrier/NN
's/POS
mainstay/NN
./.
Cathay/NNP
has/VBZ
long/RB
stated/VBN
its/PRP$
desire/NN
to/TO
double/VB
its/PRP$
weekly/JJ
flights/NNS
into/IN
China/NNP
to/TO
14/CD
,/,
and/CC
it/PRP
is/VBZ
applying/VBG
to/TO
restart/VB
long-canceled/JJ
flights/NNS
into/IN
Vietnam/NNP
./.
Further/JJ
expansion/NN
into/IN
southern/JJ
Europe/NNP
is/VBZ
also/RB
possible/JJ
,/,
says/VBZ
Mr./NNP
Bell/NNP
,/,
the/DT
spokesman/NN
./.
While/IN
a/DT
large/JJ
number/NN
of/IN
Hong/NNP
Kong/NNP
companies/NNS
have/VBP
reincorporated/VBN
offshore/RB
ahead/RB
of/IN
1997/CD
,/,
such/PDT
a/DT
move/NN
is/VBZ
n't/RB
an/DT
option/NN
for/IN
Cathay/NNP
because/IN
it/PRP
would/MD
jeopardize/VB
its/PRP$
landing/NN
rights/NNS
in/IN
Hong/NNP
Kong/NNP
./.
And/CC
Mr./NNP
Eddington/NNP
emphatically/RB
rules/VBZ
out/RP
a/DT
move/NN
to/TO
London/NNP
:/:
``/``
Our/PRP$
lifeblood/NN
is/VBZ
Hong/NNP
Kong/NNP
traffic/NN
rights/NNS
./.
''/''
He/PRP
says/VBZ
the/DT
airline/NN
is/VBZ
putting/VBG
its/PRP$
faith/NN
in/IN
the/DT
Sino-British/JJ
agreement/NN
on/IN
Hong/NNP
Kong/NNP
's/POS
return/NN
to/TO
China/NNP
./.
A/DT
special/JJ
section/NN
dealing/VBG
with/IN
aviation/NN
rights/NNS
states/VBZ
that/IN
landing/VBG
rights/NNS
for/IN
Hong/NNP
Kong/NNP
's/POS
airlines/NNS
,/,
which/WDT
include/VBP
the/DT
smaller/JJR
Hong/NNP
Kong/NNP
Dragon/NNP
Airlines/NNPS
,/,
will/MD
continue/VB
to/TO
be/VB
negotiated/VBN
by/IN
Hong/NNP
Kong/NNP
's/POS
government/NN
./.
But/CC
critics/NNS
fret/VBP
that/IN
post-1997/JJ
officials/NNS
ultimately/RB
will/MD
be/VB
responsible/JJ
to/TO
Beijing/NNP
./.
``/``
My/PRP$
feeling/NN
is/VBZ
{/(
Cathay/NNP
does/VBZ
n't/RB
}/)
have/VB
a/DT
hope/NN
in/IN
the/DT
long/JJ
run/NN
,/,
''/''
says/VBZ
an/DT
analyst/NN
,/,
who/WP
declines/VBZ
to/TO
be/VB
identified/VBN
./.
``/``
Cathay/NNP
would/MD
love/VB
to/TO
keep/VB
going/VBG
,/,
but/CC
the/DT
general/JJ
sense/NN
is/VBZ
they/PRP
're/VBP
going/VBG
to/TO
have/VB
to/TO
do/VB
something/NN
./.
''/''
Mr./NNP
Eddington/NNP
acknowledges/VBZ
that/IN
the/DT
carrier/NN
will/MD
have/VB
to/TO
evolve/VB
and/CC
adapt/VB
to/TO
local/JJ
changes/NNS
,/,
but/CC
he/PRP
feels/VBZ
that/IN
the/DT
Sino-British/JJ
agreement/NN
is/VBZ
firm/JJ
ground/NN
to/TO
build/VB
on/IN
for/IN
the/DT
foreseeable/JJ
future/NN
./.
``/``
We/PRP
're/VBP
confident/JJ
that/IN
it/PRP
protects/VBZ
our/PRP$
route/NN
structure/NN
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
and/CC
our/PRP$
ability/NN
to/TO
grow/VB
and/CC
prosper/VB
./.
''/''
Falcon/NNP
Cable/NNP
Systems/NNPS
Co./NNP
said/VBD
it/PRP
proposed/VBD
an/DT
amendment/NN
that/WDT
would/MD
allow/VB
it/PRP
to/TO
increase/VB
its/PRP$
debt/NN
cap/NN
to/TO
65/CD
%/NN
of/IN
the/DT
company/NN
's/POS
fair/JJ
market/NN
value/NN
from/IN
the/DT
40/CD
%/NN
currently/RB
allowed/VBN
./.
Falcon/NNP
,/,
a/DT
limited/JJ
partnership/NN
,/,
said/VBD
it/PRP
wanted/VBD
the/DT
increase/NN
in/IN
order/NN
to/TO
continue/VB
its/PRP$
$/$
2.15-per-unit/JJ
annual/JJ
payment/NN
,/,
and/CC
for/IN
expansion/NN
and/CC
acquisitions/NNS
./.
A/DT
spokesman/NN
for/IN
the/DT
company/NN
said/VBD
a/DT
meeting/NN
would/MD
be/VB
held/VBN
for/IN
shareholders/NNS
to/TO
vote/VB
on/IN
the/DT
amendment/NN
before/IN
year/NN
's/POS
end/NN
./.
Friday/NNP
,/,
October/NNP
20/CD
,/,
1989/CD
The/DT
key/JJ
U.S./NNP
and/CC
foreign/JJ
annual/JJ
interest/NN
rates/NNS
below/RB
are/VBP
a/DT
guide/NN
to/TO
general/JJ
levels/NNS
but/CC
do/VBP
n't/RB
always/RB
represent/VB
actual/JJ
transactions/NNS
./.
PRIME/JJ
RATE/NN
:/:
10/CD
1\/2/CD
%/NN
./.
The/DT
base/NN
rate/NN
on/IN
corporate/JJ
loans/NNS
at/IN
large/JJ
U.S./NNP
money/NN
center/NN
commercial/JJ
banks/NNS
./.
FEDERAL/JJ
FUNDS/NNS
:/:
8/CD
3\/4/CD
%/NN
high/JJ
,/,
8/CD
5\/8/CD
%/NN
low/JJ
,/,
8/CD
11\/16/CD
%/NN
near/IN
closing/NN
bid/NN
,/,
8/CD
3\/4/CD
%/NN
offered/VBN
./.
Reserves/NNS
traded/VBD
among/IN
commercial/JJ
banks/NNS
for/IN
overnight/JJ
use/NN
in/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
or/CC
more/JJR
./.
Source/NN
:/:
Fulton/NNP
Prebon/NNP
U.S.A/NN
./.
Inc/NNP
./.
DISCOUNT/NN
RATE/NN
:/:
7/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
depository/NN
institutions/NNS
by/IN
the/DT
New/NNP
York/NNP
Federal/NNP
Reserve/NNP
Bank/NNP
./.
CALL/JJ
MONEY/NN
:/:
9/CD
3\/4/CD
%/NN
to/TO
10/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
brokers/NNS
on/IN
stock/NN
exchange/NN
collateral/NN
./.
COMMERCIAL/NN
PAPER/NNS
placed/VBN
directly/RB
by/IN
General/NNP
Motors/NNPS
Acceptance/NNP
Corp./NNP
:/:
8.50/CD
%/NN
15/CD
to/TO
44/CD
days/NNS
;/:
8.25/CD
%/NN
45/CD
to/TO
72/CD
days/NNS
;/:
8.375/CD
%/NN
73/CD
to/TO
96/CD
days/NNS
;/:
8.125/CD
%/NN
97/CD
to/TO
119/CD
days/NNS
;/:
8/CD
%/NN
120/CD
to/TO
149/CD
days/NNS
;/:
7.875/CD
%/NN
150/CD
to/TO
179/CD
days/NNS
;/:
7.50/CD
%/NN
180/CD
to/TO
270/CD
days/NNS
./.
COMMERCIAL/NN
PAPER/NN
:/:
High-grade/JJ
unsecured/JJ
notes/NNS
sold/VBN
through/IN
dealers/NNS
by/IN
major/JJ
corporations/NNS
in/IN
multiples/NNS
of/IN
$/$
1,000/CD
:/:
8.55/CD
%/NN
30/CD
days/NNS
;/:
8.45/CD
%/NN
60/CD
days/NNS
;/:
8.40/CD
%/NN
90/CD
days/NNS
./.
CERTIFICATES/NNS
OF/IN
DEPOSIT/NN
:/:
8.05/CD
%/NN
one/CD
month/NN
;/:
8.02/CD
%/NN
two/CD
months/NNS
;/:
8/CD
%/NN
three/CD
months/NNS
;/:
7.98/CD
%/NN
six/CD
months/NNS
;/:
7.95/CD
%/NN
one/CD
year/NN
./.
Average/JJ
of/IN
top/JJ
rates/NNS
paid/VBN
by/IN
major/JJ
New/NNP
York/NNP
banks/NNS
on/IN
primary/JJ
new/JJ
issues/NNS
of/IN
negotiable/JJ
C.D.s/NNS
,/,
usually/RB
on/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
and/CC
more/JJR
./.
The/DT
minimum/NN
unit/NN
is/VBZ
$/$
100,000/CD
./.
Typical/JJ
rates/NNS
in/IN
the/DT
secondary/JJ
market/NN
:/:
8.55/CD
%/NN
one/CD
month/NN
;/:
8.50/CD
%/NN
three/CD
months/NNS
;/:
8.40/CD
%/NN
six/CD
months/NNS
./.
BANKERS/NNS
ACCEPTANCES/NNS
:/:
8.45/CD
%/NN
30/CD
days/NNS
;/:
8.33/CD
%/NN
60/CD
days/NNS
;/:
8.32/CD
%/NN
90/CD
days/NNS
;/:
8.15/CD
%/NN
120/CD
days/NNS
;/:
8.06/CD
%/NN
150/CD
days/NNS
;/:
7.96/CD
%/NN
180/CD
days/NNS
./.
Negotiable/JJ
,/,
bank-backed/JJ
business/NN
credit/NN
instruments/NNS
typically/RB
financing/VBG
an/DT
import/NN
order/NN
./.
LONDON/NNP
LATE/JJ
EURODOLLARS/NNS
:/:
8/CD
11\/16/CD
%/NN
to/TO
8/CD
9\/16/CD
%/NN
one/CD
month/NN
;/:
8/CD
11\/16/CD
%/NN
to/TO
8/CD
9\/16/CD
%/NN
two/CD
months/NNS
;/:
8/CD
11\/16/CD
%/NN
to/TO
8/CD
9\/16/CD
%/NN
three/CD
months/NNS
;/:
8/CD
5\/8/CD
%/NN
to/TO
8/CD
1\/2/CD
%/NN
four/CD
months/NNS
;/:
8/CD
9\/16/CD
%/NN
to/TO
8/CD
7\/16/CD
%/NN
five/CD
months/NNS
;/:
8/CD
1\/2/CD
%/NN
to/TO
8/CD
3\/8/CD
%/NN
six/CD
months/NNS
./.
LONDON/NNP
INTERBANK/NNP
OFFERED/NNP
RATES/NNPS
LIBOR/NNP
8/CD
3\/4/CD
%/NN
one/CD
month/NN
;/:
8/CD
11\/16/CD
%/NN
three/CD
months/NNS
;/:
8/CD
9\/16/CD
%/NN
six/CD
months/NNS
;/:
8/CD
1\/2/CD
%/NN
one/CD
year/NN
./.
The/DT
average/NN
of/IN
interbank/NN
offered/VBN
rates/NNS
for/IN
dollar/NN
deposits/NNS
in/IN
the/DT
London/NNP
market/NN
based/VBN
on/IN
quotations/NNS
at/IN
five/CD
major/JJ
banks/NNS
./.
FOREIGN/JJ
PRIME/JJ
RATES/NNS
:/:
Canada/NNP
13.50/CD
%/NN
;/:
Germany/NNP
8.50/CD
%/NN
;/:
Japan/NNP
4.875/CD
%/NN
;/:
Switzerland/NNP
8.50/CD
%/NN
;/:
Britain/NNP
15/CD
%/NN
./.
These/DT
rate/NN
indications/NNS
are/VBP
n't/RB
directly/RB
comparable/JJ
;/:
lending/NN
practices/NNS
vary/VBP
widely/RB
by/IN
location/NN
./.
TREASURY/NN
BILLS/NNS
:/:
Results/NNS
of/IN
the/DT
Monday/NNP
,/,
October/NNP
16/CD
,/,
1989/CD
,/,
auction/NN
of/IN
short-term/JJ
U.S./NNP
government/NN
bills/NNS
,/,
sold/VBN
at/IN
a/DT
discount/NN
from/IN
face/NN
value/NN
in/IN
units/NNS
of/IN
$/$
10,000/CD
to/TO
$/$
1/CD
million/CD
:/:
7.37/CD
%/NN
13/CD
weeks/NNS
;/:
7.42/CD
%/NN
26/CD
weeks/NNS
./.
FEDERAL/NNP
HOME/NNP
LOAN/NNP
MORTGAGE/NNP
CORP/NNP
./.
Freddie/NNP
Mac/NNP
yields/NNS
on/IN
30-year/JJ
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days./NN
9.84/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
7.875/CD
%/NN
,/,
2/CD
%/NN
rate/NN
capped/VBD
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNPS
Inc/NNP
./.
FEDERAL/NNP
NATIONAL/NNP
MORTGAGE/NNP
ASSOCIATION/NNP
Fannie/NNP
Mae/NNP
yields/NNS
on/IN
30/CD
year/NN
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
par/NN
9.78/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
8.75/CD
%/NN
,/,
6\/2/CD
rate/NN
capped/VBD
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNPS
Inc/NNP
./.
MERRILL/NNP
LYNCH/NNP
READY/JJ
ASSETS/NNS
TRUST/NN
:/:
8.52/CD
%/NN
./.
Annualized/JJ
average/JJ
rate/NN
of/IN
return/NN
after/IN
expenses/NNS
for/IN
the/DT
past/JJ
30/CD
days/NNS
;/:
not/RB
a/DT
forecast/NN
of/IN
future/JJ
returns/NNS
./.
In/IN
the/DT
hard-hit/JJ
Marina/NNP
neighborhood/NN
,/,
life/NN
after/IN
the/DT
earthquake/NN
is/VBZ
often/RB
all/RB
too/RB
real/JJ
,/,
but/CC
sometimes/RB
surreal/JJ
./.
Some/DT
scenes/NNS
:/:
--/:
Saturday/NNP
morning/NN
,/,
a/DT
resident/NN
was/VBD
given/VBN
15/CD
minutes/NNS
to/TO
scurry/VB
into/IN
a/DT
sagging/VBG
building/NN
and/CC
reclaim/VB
what/WP
she/PRP
could/MD
of/IN
her/PRP$
life/NN
's/POS
possessions/NNS
./.
Saturday/NNP
night/NN
she/PRP
dined/VBD
in/IN
an/DT
emergency/NN
shelter/NN
on/IN
salmon/NN
steaks/NNS
prepared/VBN
by/IN
chefs/NNS
from/IN
one/CD
of/IN
the/DT
city/NN
's/POS
four-star/JJ
restaurants/NNS
./.
--/:
Mayor/NNP
Art/NNP
Agnos/NNP
stands/VBZ
in/IN
the/DT
glare/NN
of/IN
television/NN
lights/NNS
trying/VBG
to/TO
explain/VB
for/IN
the/DT
20th/JJ
time/NN
why/WRB
the/DT
city/NN
is/VBZ
severely/RB
restricting/VBG
access/NN
to/TO
badly/RB
damaged/JJ
structures/NNS
./.
A/DT
couple/NN
in/IN
fashionable/JJ
spandex/NN
warm-up/NN
suits/NNS
jogs/VBZ
by/RB
,/,
headphones/NNS
jauntily/RB
in/IN
place/NN
,/,
weaving/VBG
their/PRP$
way/NN
along/IN
a/DT
street/NN
of/IN
fractured/JJ
and/CC
fallen/JJ
houses/NNS
./.
At/IN
a/DT
nearby/JJ
corner/NN
,/,
they/PRP
swerve/VBP
perilously/RB
close/RB
to/TO
a/DT
listing/VBG
apartment/NN
house/NN
,/,
oblivious/JJ
to/TO
any/DT
danger/NN
./.
A/DT
policeman/NN
shakes/VBZ
his/PRP$
head/NN
in/IN
amazement/NN
as/IN
he/PRP
steers/VBZ
them/PRP
away/RB
./.
--/:
A/DT
young/JJ
woman/NN
who/WP
has/VBZ
been/VBN
out/IN
of/IN
town/NN
shows/VBZ
up/RB
at/IN
the/DT
Marina/NNP
Middle/NNP
School/NNP
to/TO
learn/VB
that/DT
her/PRP$
apartment/NN
is/VBZ
on/IN
the/DT
condemned/VBN
list/NN
./.
She/PRP
is/VBZ
told/VBN
she/PRP
ca/MD
n't/RB
enter/VB
unless/IN
she/PRP
is/VBZ
accompanied/VBN
by/IN
an/DT
inspector/NN
./.
She/PRP
bursts/VBZ
into/IN
tears/NNS
and/CC
walks/VBZ
away/RB
./.
Nearby/RB
,/,
five/CD
temporary/JJ
residents/NNS
of/IN
the/DT
school/NN
shelter/NN
sit/VBP
on/IN
stools/NNS
,/,
having/VBG
their/PRP$
necks/NNS
and/CC
backs/NNS
kneaded/VBN
by/IN
volunteer/NN
masseuses/NNS
./.
The/DT
Marina/NNP
rescue/NN
center/NN
offered/VBD
a/DT
very/RB
San/JJ
Franciscan/JJ
response/NN
to/TO
the/DT
disaster/NN
./.
In/IN
addition/NN
to/TO
free/JJ
massages/NNS
,/,
there/EX
was/VBD
free/JJ
counseling/NN
,/,
phone/NN
calls/NNS
and/CC
a/DT
free/JJ
shuttle/NN
bus/NN
to/TO
a/DT
health/NN
club/NN
,/,
which/WDT
offered/VBD
up/RP
its/PRP$
showers/NNS
,/,
saunas/NNS
and/CC
hot/JJ
tubs/NNS
./.
The/DT
cafeteria/NN
offered/VBD
donated/VBN
croissants/NNS
and/CC
brie/NN
for/IN
breakfast/NN
,/,
and/CC
for/IN
dinner/NN
,/,
pasta/NN
salad/NN
and/CC
chocolate/NN
mousse/NN
torts/NNS
along/IN
with/IN
the/DT
salmon/NN
./.
``/``
This/DT
has/VBZ
been/VBN
a/DT
15-pound/JJ
earthquake/NN
for/IN
me/PRP
,/,
''/''
said/VBD
resident/NN
Joan/NNP
O'Shea/NNP
,/,
who/WP
works/VBZ
in/IN
an/DT
acupuncturist/NN
's/POS
office/NN
./.
She/PRP
and/CC
some/DT
friends/NNS
are/VBP
considering/VBG
offering/VBG
earthquake/NN
victims/NNS
free/JJ
yoga/NN
classes/NNS
and/CC
``/``
aroma/NN
therapy/NN
''/''
--/:
massages/NNS
with/IN
scented/JJ
oils/NNS
./.
She/PRP
finds/VBZ
the/DT
response/NN
of/IN
Marina/NNP
residents/NNS
--/:
primarily/RB
yuppies/NNS
and/CC
elderly/JJ
people/NNS
--/:
to/TO
the/DT
devastation/NN
of/IN
their/PRP$
homes/NNS
``/``
incredible/JJ
./.
People/NNS
have/VBP
been/VBN
very/RB
respectful/JJ
of/IN
each/DT
other/JJ
./.
I/PRP
do/VBP
n't/RB
know/VB
if/IN
this/DT
would/MD
have/VB
happened/VBN
somewhere/RB
else/RB
./.
''/''
Out/IN
on/IN
the/DT
streets/NNS
,/,
some/DT
residents/NNS
of/IN
badly/RB
damaged/JJ
buildings/NNS
were/VBD
allowed/VBN
a/DT
15-minute/JJ
scavenger/NN
hunt/NN
through/IN
their/PRP$
possessions/NNS
./.
``/``
It/PRP
's/VBZ
so/RB
weird/JJ
to/TO
have/VB
to/TO
decide/VB
what/WP
's/VBZ
really/RB
important/JJ
to/TO
you/PRP
,/,
''/''
said/VBD
Barbara/NNP
May/NNP
./.
She/PRP
went/VBD
first/RB
for/IN
personal/JJ
mementos/NNS
./.
In/IN
post-earthquake/JJ
parlance/NN
,/,
her/PRP$
building/NN
is/VBZ
a/DT
``/``
red/NN
./.
''/''
After/IN
being/VBG
inspected/VBN
,/,
buildings/NNS
with/IN
substantial/JJ
damage/NN
were/VBD
color-coded/VBN
./.
Green/NN
allowed/VBD
residents/NNS
to/TO
re-enter/VB
;/:
yellow/NN
allowed/VBD
limited/JJ
access/NN
;/:
red/NN
allowed/VBD
residents/NNS
one/CD
last/JJ
entry/NN
to/TO
gather/VB
everything/NN
they/PRP
could/MD
within/IN
15/CD
minutes/NNS
./.
Reds/NNS
and/CC
yellows/NNS
went/VBD
about/IN
their/PRP$
business/NN
with/IN
a/DT
kind/NN
of/IN
measured/JJ
grimness/NN
./.
Some/DT
frantically/RB
dumped/VBD
belongings/NNS
into/IN
pillowcases/NNS
,/,
others/NNS
threw/VBD
goods/NNS
out/IN
windows/NNS
./.
It/PRP
did/VBD
n't/RB
help/VB
that/IN
on/IN
Saturday/NNP
,/,
after/IN
three/CD
days/NNS
of/IN
sunshine/NN
,/,
it/PRP
rained/VBD
./.
``/``
The/DT
guys/NNS
are/VBP
going/VBG
for/IN
their/PRP$
skis/NNS
,/,
their/PRP$
stereos/NNS
,/,
their/PRP$
personal/JJ
computers/NNS
,/,
''/''
said/VBD
Frank/NNP
Fitzgerald/NNP
,/,
who/WP
helped/VBD
others/NNS
empty/VB
their/PRP$
apartments/NNS
./.
``/``
The/DT
women/NNS
wanted/VBD
photo/NN
albums/NNS
,/,
a/DT
certain/JJ
brooch/NN
,/,
kind/RB
of/RB
sentimental/JJ
things/NNS
./.
''/''
He/PRP
showed/VBD
an/DT
unbroken/JJ
,/,
still-ticking/JJ
pocket/NN
watch/NN
that/IN
he/PRP
retrieved/VBD
for/IN
one/CD
woman/NN
./.
It/PRP
belonged/VBD
to/TO
her/PRP$
grandfather/NN
./.
Some/DT
residents/NNS
defied/VBD
orders/NNS
and/CC
returned/VBD
to/TO
``/``
red/JJ
''/''
buildings/NNS
to/TO
retrieve/VB
goods/NNS
./.
One/CD
building/NN
was/VBD
upgraded/VBN
to/TO
red/JJ
status/NN
while/IN
people/NNS
were/VBD
taking/VBG
things/NNS
out/RP
,/,
and/CC
a/DT
resident/NN
who/WP
was/VBD
n't/RB
allowed/VBN
to/TO
go/VB
back/RB
inside/RB
called/VBD
up/IN
the/DT
stairs/NNS
to/TO
his/PRP$
girlfriend/NN
,/,
telling/VBG
her/PRP
to/TO
keep/VB
sending/VBG
things/NNS
down/RP
to/TO
the/DT
lobby/NN
./.
A/DT
policewoman/NN
had/VBD
to/TO
be/VB
called/VBN
in/RB
to/TO
make/VB
her/PRP
leave/VB
;/:
the/DT
policewoman/NN
helped/VBD
carry/VB
out/RP
one/CD
last/JJ
load/NN
./.
Enforcement/NN
of/IN
restricted-entry/JJ
rules/NNS
was/VBD
sporadic/JJ
,/,
residents/NNS
said/VBD
./.
One/CD
man/NN
trying/VBG
to/TO
remove/VB
his/PRP$
car/NN
was/VBD
told/VBN
by/IN
officials/NNS
to/TO
get/VB
out/RB
of/IN
his/PRP$
garage/NN
./.
When/WRB
he/PRP
sneaked/VBD
back/RB
later/RB
to/TO
try/VB
again/RB
,/,
a/DT
different/JJ
policeman/NN
offered/VBD
to/TO
help/VB
him/PRP
get/VB
the/DT
car/NN
out/RP
./.
The/DT
Marina/NNP
also/RB
has/VBZ
become/VBN
the/DT
focal/JJ
point/NN
of/IN
city/NN
efforts/NNS
to/TO
reunite/VB
residents/NNS
with/IN
any/DT
pets/NNS
that/WDT
may/MD
have/VB
fled/VBN
or/CC
become/VBN
lost/VBN
during/IN
the/DT
earthquake/NN
./.
On/IN
lampposts/NNS
along/IN
Fillmore/NNP
Street/NNP
,/,
a/DT
major/JJ
Marina/NNP
artery/NN
,/,
posters/NNS
were/VBD
offering/VBG
a/DT
$/$
100/CD
reward/NN
for/IN
a/DT
cat/NN
lost/VBN
during/IN
the/DT
quake/NN
./.
The/DT
San/NNP
Francisco/NNP
Society/NNP
for/IN
the/DT
Prevention/NNP
of/IN
Cruelty/NNP
to/TO
Animals/NNPS
also/RB
has/VBZ
been/VBN
providing/VBG
medical/JJ
care/NN
,/,
food/NN
,/,
water/NN
and/CC
foster/JJ
homes/NNS
for/IN
quake-displaced/JJ
animals/NNS
./.
The/DT
SPCA/NNP
says/VBZ
it/PRP
has/VBZ
received/VBN
more/JJR
than/IN
100/CD
requests/NNS
for/IN
foster/JJ
homes/NNS
on/IN
behalf/NN
of/IN
dogs/NNS
and/CC
cats/NNS
,/,
though/IN
some/DT
people/NNS
have/VBP
sought/VBN
temporary/JJ
homes/NNS
for/IN
birds/NNS
and/CC
fish/NN
./.
For/IN
example/NN
,/,
one/CD
parakeet/NN
owner/NN
returning/VBG
home/NN
found/VBD
that/DT
her/PRP$
apartment/NN
,/,
like/IN
many/JJ
others/NNS
in/IN
the/DT
Marina/NNP
,/,
did/VBD
n't/RB
have/VB
heat/NN
./.
``/``
She/PRP
can/MD
stay/VB
there/RB
with/IN
no/DT
heat/NN
,/,
but/CC
for/IN
a/DT
parakeet/NN
,/,
that/WDT
can/MD
be/VB
deadly/JJ
,/,
''/''
says/VBZ
Daralee/NNP
Konowitch/NNP
,/,
animalcare/JJ
services/NNS
manager/NN
for/IN
the/DT
SPCA/NNP
./.
A/DT
warm/JJ
foster/JJ
home/NN
has/VBZ
been/VBN
found/VBN
./.
The/DT
neighborhood/NN
around/IN
Alexander/NNP
Haagen/NNP
Co./NNP
's/POS
Vermont-Slauson/NNP
Shopping/NNP
Center/NNP
in/IN
the/DT
Watts/NNP
section/NN
of/IN
Los/NNP
Angeles/NNP
resembles/VBZ
the/DT
crime-ridden/JJ
,/,
deteriorating/JJ
sections/NNS
of/IN
many/JJ
inner/JJ
cities/NNS
and/CC
certainly/RB
is/VBZ
n't/RB
the/DT
sort/NN
of/IN
area/NN
one/PRP
would/MD
choose/VB
to/TO
visit/VB
./.
But/CC
turn/VB
into/IN
the/DT
shopping/NN
center/NN
's/POS
parking/NN
lot/NN
,/,
and/CC
one/PRP
could/MD
be/VB
in/IN
the/DT
safe/JJ
,/,
busy/JJ
mall/NN
of/IN
a/DT
prosperous/JJ
suburb/NN
./.
Only/RB
it/PRP
is/VBZ
safer/JJR
,/,
and/CC
busier/JJR
./.
Over/IN
the/DT
past/JJ
year/NN
there/EX
have/VBP
been/VBN
only/RB
one/CD
burglary/NN
,/,
three/CD
thefts/NNS
of/IN
or/CC
from/IN
autos/NNS
,/,
no/DT
purse-snatchings/NNS
,/,
and/CC
one/CD
attempted/VBN
robbery/NN
in/IN
the/DT
mall/NN
,/,
which/WDT
opened/VBN
in/IN
late/JJ
1981/CD
./.
A/DT
shopping/VBG
center/NN
of/IN
similar/JJ
size/NN
in/IN
an/DT
affluent/JJ
Los/NNP
Angeles/NNP
suburb/NN
would/MD
,/,
per/IN
year/NN
,/,
be/VB
expected/VBN
to/TO
have/VB
eight/CD
burglaries/NNS
,/,
70/CD
thefts/NNS
of/IN
or/CC
from/IN
autos/NNS
,/,
and/CC
four/CD
robberies/NNS
./.
The/DT
Watts/NNP
mall/NN
has/VBZ
annual/JJ
sales/NNS
of/IN
more/JJR
than/IN
$/$
350/CD
per/IN
leasable/JJ
square/NN
foot/NN
;/:
the/DT
figure/NN
for/IN
a/DT
comparable/JJ
suburban/JJ
shopping/NN
center/NN
would/MD
be/VB
$/$
200/CD
./.
Three/CD
other/JJ
Haagen/NNP
shopping/NN
centers/NNS
in/IN
the/DT
Watts/NNP
area/NN
are/VBP
doing/VBG
almost/RB
as/RB
well/RB
./.
A/DT
successful/JJ
low-crime/JJ
mall/NN
in/IN
a/DT
high-crime/JJ
area/NN
violates/VBZ
the/DT
more/RBR
typical/JJ
inner-city/JJ
pattern/NN
,/,
in/IN
which/WDT
commercial/JJ
areas/NNS
are/VBP
taken/VBN
over/IN
by/IN
unruly/JJ
youth/NN
,/,
gangs/NNS
,/,
and/CC
the/DT
criminal/JJ
element/NN
,/,
with/IN
an/DT
erosion/NN
of/IN
the/DT
customer/NN
base/NN
,/,
development/NN
capital/NN
,/,
and/CC
insurability/NN
./.
Major/JJ
regional/JJ
and/CC
national/JJ
chain/NN
stores/NNS
are/VBP
replaced/VBN
by/IN
mom-and-pop/JJ
operations/NNS
offering/VBG
poorer-quality/JJR
merchandise/NN
at/IN
higher/JJR
prices/NNS
./.
Along/IN
with/IN
the/DT
exodus/NN
of/IN
shopping/NN
opportunities/NNS
is/VBZ
an/DT
exodus/NN
of/IN
the/DT
jobs/NNS
that/IN
the/DT
major/JJ
chains/NNS
used/VBD
to/TO
provide/VB
to/TO
community/NN
residents/NNS
./.
Thus/RB
there/EX
is/VBZ
even/RB
more/JJR
to/TO
the/DT
Vermont-Slauson/NNP
Center/NNP
than/IN
a/DT
good/JJ
place/NN
to/TO
shop/NN
./.
This/DT
defensible/JJ
commercial/JJ
zone/NN
becomes/VBZ
,/,
for/IN
the/DT
residents/NNS
,/,
a/DT
secure/JJ
oasis/NN
in/IN
a/DT
barren/JJ
urban/JJ
landscape/NN
,/,
evidence/NN
that/DT
community/NN
decay/NN
is/VBZ
not/RB
inevitable/JJ
and/CC
that/IN
the/DT
gangs/NNS
are/VBP
not/RB
invincible/JJ
./.
The/DT
center/NN
improves/VBZ
the/DT
community/NN
image/NN
to/TO
outsiders/NNS
as/IN
well/RB
,/,
and/CC
may/MD
help/VB
to/TO
arrest/VB
,/,
or/CC
even/RB
reverse/VB
,/,
the/DT
exodus/NN
of/IN
capital/NN
and/CC
investment/NN
./.
An/DT
additional/JJ
benefit/NN
is/VBZ
the/DT
creation/NN
of/IN
jobs/NNS
./.
This/DT
starts/VBZ
in/IN
the/DT
construction/NN
phase/NN
through/IN
the/DT
use/NN
of/IN
minority/NN
contractors/NNS
and/CC
local/JJ
workers/NNS
./.
It/PRP
continues/VBZ
through/IN
the/DT
life/NN
of/IN
the/DT
center/NN
;/:
the/DT
Vermont-Slauson/NNP
Center/NNP
has/VBZ
created/VBN
500/CD
permanent/JJ
private-sector/NN
jobs/NNS
at/IN
a/DT
one-time/JJ
cost/NN
in/IN
public/JJ
funds/NNS
of/IN
only/RB
$/$
2,500/CD
per/IN
job/NN
./.
As/IN
many/JJ
of/IN
these/DT
jobs/NNS
are/VBP
filled/VBN
by/IN
local/JJ
residents/NNS
,/,
who/WP
move/VBP
from/IN
the/DT
welfare/NN
rolls/NNS
to/TO
the/DT
tax/NN
rolls/NNS
,/,
the/DT
$/$
2,500-per-job/JJ
public/JJ
investment/NN
should/MD
repay/VB
itself/PRP
in/IN
a/DT
few/JJ
years/NNS
./.
And/CC
that/DT
is/VBZ
before/IN
consideration/NN
of/IN
increased/VBN
state/NN
and/CC
local/JJ
revenues/NNS
from/IN
taxes/NNS
and/CC
fees/NNS
on/IN
sales/NNS
,/,
real/JJ
estate/NN
,/,
licenses/NNS
and/CC
the/DT
like/JJ
./.
Profits/NNS
are/VBP
also/RB
plowed/VBN
back/RB
into/IN
the/DT
community/NN
;/:
the/DT
non-profit/JJ
Vermont-Slauson/NNP
Economic/NNP
Development/NNP
Corp./NNP
receives/VBZ
60/CD
%/NN
of/IN
the/DT
profits/NNS
from/IN
the/DT
Vermont-Slauson/NNP
Center/NNP
and/CC
uses/VBZ
the/DT
money/NN
to/TO
provide/VB
moderate/JJ
and/CC
low-cost/JJ
housing/NN
in/IN
the/DT
community/NN
--/:
now/RB
running/VBG
into/IN
the/DT
hundreds/NNS
of/IN
units/NNS
--/:
as/RB
well/RB
as/IN
commercial/JJ
and/CC
industrial/JJ
development/NN
projects/NNS
./.
Bradford/NNP
Crowe/NNP
,/,
director/NN
of/IN
the/DT
mayor/NN
's/POS
City/NNP
Economic/NNP
Development/NNP
Office/NNP
,/,
says/VBZ
:/:
``/``
There/EX
is/VBZ
no/DT
question/NN
that/IN
Vermont-Slauson/NNP
had/VBD
a/DT
halo/NN
effect/NN
on/IN
the/DT
surrounding/VBG
neighborhood/NN
./.
What/WP
had/VBD
been/VBN
a/DT
deteriorated/JJ
area/NN
with/IN
nothing/NN
but/CC
wig/NN
shops/NNS
and/CC
shoe/NN
shops/NNS
is/VBZ
now/RB
experiencing/VBG
a/DT
major/JJ
upgrading/NN
in/IN
the/DT
housing/NN
and/CC
commercial/JJ
stock/NN
,/,
thanks/NNS
to/TO
a/DT
continuously/RB
replenished/VBN
source/NN
of/IN
revitalization/JJ
capital/NN
that/IN
Vermont-Slauson/NNP
yields/VBZ
./.
''/''
Another/DT
benefit/NN
is/VBZ
that/IN
substantial/JJ
percentages/NNS
of/IN
the/DT
proprietors/NNS
in/IN
these/DT
centers/NNS
are/VBP
minority/NN
businessmen/NNS
and/CC
women/NNS
./.
In/IN
the/DT
Grand/NNP
Boulevard/NNP
Plaza/NNP
developed/VBN
by/IN
Matanky/NNP
Realty/NNP
Group/NNP
in/IN
Chicago/NNP
's/POS
Third/NNP
Ward/NNP
,/,
opposite/IN
the/DT
Robert/NNP
Taylor/NNP
Homes/NNPS
,/,
29/CD
%/NN
of/IN
the/DT
stores/NNS
to/TO
date/NN
have/VBP
been/VBN
leased/VBN
to/TO
blacks/NNS
and/CC
14/CD
%/NN
to/TO
members/NNS
of/IN
other/JJ
minority/NN
groups/NNS
./.
Children/NNS
from/IN
the/DT
community/NN
will/MD
have/VB
worthier/JJR
role/NN
models/NNS
than/IN
the/DT
drug/NN
kingpins/NNS
./.
So/RB
what/WP
's/VBZ
the/DT
catch/NN
?/.
Primarily/RB
that/IN
putting/VBG
one/CD
of/IN
these/DT
inner-city/JJ
deals/NNS
together/RB
takes/VBZ
time/NN
,/,
patience/NN
,/,
breadth/NN
of/IN
vision/NN
and/CC
negotiating/NN
skills/NNS
that/IN
not/RB
all/DT
developers/NNS
possess/VBP
./.
Security/NN
costs/NNS
are/VBP
also/RB
quite/RB
high/JJ
./.
One/CD
of/IN
these/DT
centers/NNS
can/MD
involve/VB
years/NNS
of/IN
negotiating/VBG
with/IN
numerous/JJ
public/JJ
agencies/NNS
,/,
local/JJ
political/JJ
leaders/NNS
,/,
and/CC
citizen/NN
groups/NNS
,/,
and/CC
with/IN
prospective/JJ
tenants/NNS
and/CC
sources/NNS
of/IN
financing/NN
./.
Suburban/JJ
deals/NNS
are/VBP
not/RB
without/IN
their/PRP$
delays/NNS
and/CC
complications/NNS
--/:
inner-city/JJ
deals/NNS
just/RB
have/VBP
more/JJR
of/IN
them/PRP
./.
Security/NN
at/IN
a/DT
typical/JJ
Haagen/NNP
inner-city/JJ
center/NN
is/VBZ
impressive/JJ
,/,
but/CC
unobtrusive/JJ
./.
The/DT
entire/JJ
site/NN
is/VBZ
enclosed/VBN
by/IN
a/DT
6-to-8-foot-high/JJ
ornamental/JJ
iron/NN
fence/NN
with/IN
a/DT
small/JJ
number/NN
of/IN
remote-controlled/JJ
gates/NNS
./.
Shrubs/NNS
and/CC
flowers/NNS
give/VBP
it/PRP
a/DT
pleasing/NN
and/CC
non-fortress-like/JJ
appearance/NN
./.
Infrared/JJ
motion/NN
detectors/NNS
and/CC
closed-circuit/JJ
TV/NN
cameras/NNS
monitor/VBP
the/DT
entire/JJ
center/NN
;/:
lighting/NN
levels/NNS
are/VBP
three/CD
to/TO
five/CD
times/NNS
the/DT
industry/NN
standard/NN
./.
The/DT
security/NN
command/NN
post/NN
,/,
camouflaged/VBN
as/IN
second-story/JJ
retail/JJ
space/NN
,/,
has/VBZ
its/PRP$
own/JJ
``/``
crow/NN
's/POS
nest/NN
''/''
above/IN
the/DT
roofs/NNS
of/IN
the/DT
other/JJ
buildings/NNS
,/,
with/IN
a/DT
panoramic/JJ
view/NN
of/IN
the/DT
entire/JJ
center/NN
./.
Local/JJ
law/NN
enforcement/NN
is/VBZ
present/JJ
in/IN
a/DT
sub-station/JJ
occupying/JJ
space/NN
donated/VBN
by/IN
the/DT
center/NN
./.
These/DT
features/NNS
are/VBP
also/RB
used/VBN
in/IN
Matanky/NNP
Realty/NNP
Group/NNP
's/POS
Grand/NNP
Boulevard/NNP
Plaza/NNP
./.
Haagen/NNP
has/VBZ
its/PRP$
own/JJ
large/JJ
security/NN
force/NN
of/IN
well-trained/JJ
and/CC
well-paid/JJ
personnel/NNS
on/IN
round-the-clock/JJ
duty/NN
at/IN
each/DT
center/NN
./.
Security/NN
is/VBZ
60/CD
%/NN
to/TO
70/CD
%/NN
of/IN
the/DT
common/JJ
area/NN
charges/NNS
of/IN
these/DT
centers/NNS
,/,
vs./FW
an/DT
industry/NN
average/NN
of/IN
about/IN
15/CD
%/NN
./.
These/DT
security/NN
costs/NNS
are/VBP
kept/VBN
off-budget/JJ
because/IN
the/DT
centers/NNS
'/POS
site/NN
acquisition/NN
,/,
construction/NN
,/,
and/CC
financing/NN
costs/NNS
were/VBD
reduced/VBN
by/IN
such/JJ
programs/NNS
as/IN
Urban/NNP
Development/NNP
Action/NNP
Grants/NNPS
,/,
Economic/NNP
Development/NNP
Administration/NNP
Grants/NNPS
,/,
Community/NNP
Development/NNP
Block/NNP
Grants/NNPS
,/,
tax-free/JJ
Industrial/NNP
Development/NNP
Bonds/NNPS
,/,
Enterprise/NNP
Zone/NNP
tax/NN
write-offs/NN
,/,
city/NN
infrastructure/NN
grants/NNS
,/,
and/CC
tax/NN
increment/NN
financing/NN
./.
Many/JJ
of/IN
these/DT
programs/NNS
no/RB
longer/RB
exist/VBP
,/,
or/CC
have/VB
been/VBN
severely/RB
cut/VBN
back/RB
./.
However/RB
,/,
since/IN
these/DT
centers/NNS
appear/VBP
to/TO
pay/VB
for/IN
themselves/PRP
,/,
there/EX
is/VBZ
nothing/NN
to/TO
prevent/VB
state/NN
and/CC
local/JJ
governments/NNS
from/IN
enacting/VBG
legislation/NN
with/IN
similar/JJ
provisions/NNS
./.
Many/JJ
states/NNS
already/RB
have/VB
Enterprise/NN
Zones/NNS
and/CC
legislation/NN
that/WDT
combines/VBZ
tax/NN
incentives/NNS
,/,
loans/NNS
,/,
and/CC
grants/NNS
to/TO
encourage/VB
investment/NN
in/IN
depressed/JJ
areas/NNS
with/IN
requirements/NNS
for/IN
the/DT
hiring/NN
of/IN
the/DT
unemployed/JJ
and/CC
minorities/NNS
./.
These/DT
programs/NNS
could/MD
be/VB
expanded/VBN
to/TO
focus/VB
on/IN
funds/NNS
for/IN
project/NN
planning/NN
,/,
identifying/VBG
sources/NNS
of/IN
funds/NNS
,/,
and/CC
for/IN
acquiring/VBG
a/DT
site/NN
and/CC
preparing/VBG
it/PRP
./.
Combatting/VBG
crime/NN
and/CC
the/DT
fear/NN
of/IN
it/PRP
in/IN
inner-city/JJ
commercial/JJ
areas/NNS
should/MD
give/VB
Enterprise/NN
Zones/NNS
more/JJR
success/NN
than/IN
most/JJS
have/VBP
enjoyed/VBN
to/TO
date/NN
./.
With/IN
many/JJ
suburban/JJ
areas/NNS
basically/RB
overbuilt/JJ
with/IN
shopping/NN
centers/NNS
,/,
inner-city/JJ
areas/NNS
may/MD
represent/VB
a/DT
major/JJ
new/JJ
untapped/JJ
market/NN
for/IN
investment/NN
./.
New/JJ
approaches/NNS
to/TO
mall/NN
design/NN
and/CC
operation/NN
make/VBP
it/PRP
possible/JJ
to/TO
tap/VB
these/DT
markets/NNS
./.
If/IN
the/DT
risks/NNS
and/CC
rewards/NNS
are/VBP
reasonable/JJ
,/,
developers/NNS
will/MD
respond/VB
./.
Government/NN
officials/NNS
who/WP
wonder/VBP
how/WRB
important/JJ
it/PRP
is/VBZ
for/IN
them/PRP
to/TO
encourage/VB
development/NN
in/IN
high-risk/JJ
areas/NNS
should/MD
visit/VB
Vermont-Slauson/NNP
and/CC
Grand/NNP
Boulevard/NNP
Plaza/NNP
and/CC
decide/VB
for/IN
themselves/PRP
./.
The/DT
answer/NN
will/MD
be/VB
obvious/JJ
./.
Mr./NNP
Titus/NNP
is/VBZ
a/DT
researcher/NN
at/IN
the/DT
Justice/NNP
Department/NNP
's/POS
National/NNP
Institute/NNP
of/IN
Justice/NNP
./.
story/NN
:/:
``/``
Small/JJ
Merchants/NNS
'/POS
Big/JJ
Burdens/NNS
''/''
--/:
WSJ/NNP
Oct./NNP
23/CD
,/,
1989/CD
)/)
ATHLONE/NNP
INDUSTRIES/NNPS
Inc./NNP
said/VBD
that/IN
on/IN
Dec./NNP
21/CD
it/PRP
will/MD
redeem/VB
$/$
10/CD
million/CD
face/NN
amount/NN
of/IN
its/PRP$
$/$
59.3/CD
million/CD
of/IN
15.625/CD
%/NN
subordinated/JJ
notes/NNS
outstanding/JJ
,/,
due/JJ
June/NNP
1/CD
,/,
1991/CD
./.
For/IN
each/DT
$/$
1,000/CD
of/IN
notes/NNS
,/,
the/DT
maker/NN
of/IN
specialty/NN
metals/NNS
,/,
industrial/JJ
fasteners/NNS
and/CC
consumer/NN
products/NNS
will/MD
pay/VB
$/$
1,026.46/CD
plus/CC
$/$
8.68/CD
of/IN
interest/NN
accrued/VBN
from/IN
Dec./NNP
1/CD
./.
The/DT
company/NN
will/MD
notify/VB
holders/NNS
of/IN
the/DT
notes/NNS
to/TO
be/VB
redeemed/VBN
./.
Manufacturers/NNPS
Hanover/NNP
Trust/NNP
Co./NNP
is/VBZ
redemption/NN
agent/NN
./.
One/CD
company/NN
recently/RB
was/VBD
listed/VBN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
and/CC
another/DT
will/MD
join/VB
the/DT
Big/NNP
Board/NNP
from/IN
the/DT
over-the-counter/JJ
market/NN
this/DT
week/NN
./.
Putnam/NNP
Investment/NNP
Grade/NNP
Municipal/NNP
Trust/NNP
,/,
Boston/NNP
,/,
was/VBD
listed/VBN
with/IN
the/DT
symbol/NN
PGM/NNP
./.
The/DT
new/JJ
closed-end/JJ
management/NN
investment/NN
company/NN
trades/VBZ
shares/NNS
of/IN
beneficial/JJ
interest/NN
./.
It/PRP
invests/VBZ
primarily/RB
in/IN
tax-exempt/JJ
municipal/JJ
securities/NNS
./.
Hibernia/NNP
Corp./NNP
,/,
a/DT
New/NNP
Orleans/NNP
bank/NN
holding/VBG
company/NN
,/,
will/MD
join/VB
the/DT
Big/NNP
Board/NNP
Thursday/NNP
under/IN
HIB/NNP
./.
Three/CD
companies/NNS
began/VBD
trading/VBG
over/IN
the/DT
counter/NN
./.
Exabyte/NNP
Corp./NNP
,/,
a/DT
Boulder/NNP
,/,
Colo./NNP
,/,
maker/NN
of/IN
high-capacity/JJ
tape/NN
cartridge/NN
systems/NNS
used/VBN
to/TO
back/VB
up/RP
computer/NN
disk/NN
drives/NNS
,/,
started/VBD
OTC/NNP
trading/VBG
with/IN
the/DT
symbol/NN
EXBT/NNP
./.
Rally/NNP
's/POS
Inc./NN
,/,
a/DT
Louisville/NNP
,/,
Ky./NNP
,/,
restaurant/NN
franchisor/NN
,/,
started/VBD
trading/VBG
under/IN
RLLY/NNP
./.
Sierra/NNP
Tucson/NNP
Cos./NNP
,/,
Tucson/NNP
,/,
Ariz./NNP
,/,
started/VBD
trading/VBG
under/IN
STSN/NNP
./.
It/PRP
operates/VBZ
various/JJ
types/NNS
of/IN
addiction-treatment/JJ
facilities/NNS
./.
Separately/RB
,/,
on/IN
the/DT
Pacific/NNP
Stock/NNP
Exchange/NNP
,/,
put/JJ
and/CC
call/JJ
options/NNS
on/IN
the/DT
common/JJ
stock/NN
of/IN
Aldus/NNP
Corp./NNP
started/VBD
trading/VBG
./.
Aldus/NNP
,/,
Seattle/NNP
,/,
makes/VBZ
computer/NN
software/NN
products/NNS
./.
Options/NNS
give/VBP
a/DT
holder/NN
the/DT
right/NN
,/,
but/CC
not/RB
the/DT
obligation/NN
,/,
to/TO
buy/VB
or/CC
sell/VB
a/DT
security/NN
at/IN
a/DT
set/VBN
price/NN
within/IN
a/DT
set/VBN
period/NN
of/IN
time/NN
./.
Dow/NNP
Chemical/NNP
Co./NNP
said/VBD
its/PRP$
Destec/NNP
Energy/NNP
Inc./NNP
unit/NN
has/VBZ
agreed/VBN
to/TO
buy/VB
PSE/NNP
Inc./NNP
,/,
a/DT
Houston/NNP
energy/NN
company/NN
,/,
in/IN
a/DT
deal/NN
valued/VBN
at/IN
about/IN
$/$
115/CD
million/CD
./.
Dow/NNP
,/,
of/IN
Midland/NNP
,/,
Mich./NNP
,/,
said/VBD
its/PRP$
unit/NN
will/MD
begin/VB
by/IN
Thursday/NNP
a/DT
tender/NN
offer/NN
of/IN
$/$
12.25/CD
a/DT
share/NN
for/IN
all/DT
PSE/NNP
common/JJ
shares/NNS
outstanding/JJ
./.
Among/IN
other/JJ
conditions/NNS
,/,
the/DT
offer/NN
depends/VBZ
on/IN
the/DT
Dow/NNP
unit/NN
acquiring/VBG
at/IN
least/JJS
66/CD
2\/3/CD
%/NN
of/IN
the/DT
PSE/NNP
shares/NNS
outstanding/JJ
,/,
the/DT
companies/NNS
said/VBD
in/IN
a/DT
joint/JJ
statement/NN
Friday/NNP
./.
PSE/NNP
has/VBZ
about/IN
9.2/CD
million/CD
shares/NNS
outstanding/JJ
./.
The/DT
company/NN
said/VBD
the/DT
approximately/RB
$/$
115/CD
million/CD
acquisition/NN
price/NN
includes/VBZ
its/PRP$
total/NN
$/$
33/CD
million/CD
of/IN
long-term/JJ
debt/NN
outstanding/JJ
./.
Dow/NNP
said/VBD
it/PRP
already/RB
has/VBZ
agreements/NNS
with/IN
Albert/NNP
J./NNP
Smith/NNP
Jr./NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
of/IN
PSE/NNP
,/,
and/CC
certain/JJ
other/JJ
officers/NNS
of/IN
the/DT
company/NN
under/IN
which/WDT
Dow/NNP
may/MD
buy/VB
about/IN
40/CD
%/NN
of/IN
the/DT
PSE/NNP
common/JJ
shares/NNS
outstanding/JJ
./.
PSE/NNP
is/VBZ
a/DT
designer/NN
and/CC
operator/NN
of/IN
energy-cogeneration/NN
facilities/NNS
and/CC
had/VBD
1988/CD
sales/NNS
of/IN
$/$
234/CD
million/CD
./.
The/DT
company/NN
is/VBZ
owner/NN
and/CC
operator/NN
,/,
or/CC
an/DT
equity/NN
partner/NN
,/,
in/IN
six/CD
cogeneration/NN
facilities/NNS
--/:
two/CD
in/IN
Texas/NNP
and/CC
four/CD
in/IN
California/NNP
./.
The/DT
company/NN
said/VBD
recently/RB
it/PRP
expects/VBZ
third-quarter/NN
earnings/NNS
will/MD
be/VB
in/IN
range/NN
from/IN
$/$
1.3/CD
million/CD
to/TO
$/$
1.7/CD
million/CD
,/,
or/CC
14/CD
cents/NNS
to/TO
18/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
$/$
326,000/CD
,/,
or/CC
four/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
ago/RB
./.
If/IN
growth/NN
regains/VBZ
its/PRP$
glamour/NN
among/IN
investors/NNS
,/,
a/DT
sluggish/JJ
segment/NN
of/IN
the/DT
Nasdaq/NNP
over-the-counter/JJ
market/NN
could/MD
show/VB
some/DT
flash/NN
./.
Some/DT
stock/NN
pickers/NNS
already/RB
are/VBP
targeting/VBG
the/DT
OTC/NNP
market/NN
,/,
where/WRB
,/,
they/PRP
say/VBP
,/,
await/VBP
plenty/NN
of/IN
small/JJ
medium-sized/JJ
growth/NN
stocks/NNS
./.
Best/JJS
of/IN
all/DT
,/,
they/PRP
add/VBP
,/,
these/DT
growth/NN
issues/NNS
,/,
unlike/IN
their/PRP$
big/JJ
blue-chip/JJ
cousins/NNS
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
are/VBP
languishing/VBG
at/IN
depressed/JJ
prices/NNS
./.
Growth/NN
stocks/NNS
will/MD
return/VB
to/TO
favor/VB
,/,
some/DT
analysts/NNS
and/CC
money/NN
managers/NNS
think/VBP
,/,
because/IN
of/IN
the/DT
jitters/NNS
caused/VBN
by/IN
the/DT
market/NN
's/POS
steep/JJ
slide/NN
on/IN
Oct./NNP
13/CD
,/,
and/CC
because/RB
of/IN
the/DT
current/JJ
swell/NN
of/IN
disappointing/JJ
earnings/NNS
announcements/NNS
./.
Against/IN
such/JJ
a/DT
backdrop/NN
,/,
companies/NNS
with/IN
proven/JJ
track/NN
records/NNS
of/IN
earnings/NNS
gains/NNS
of/IN
20/CD
%/NN
or/CC
so/RB
annually/RB
have/VBP
extra/JJ
appeal/NN
./.
``/``
The/DT
market/NN
will/MD
have/VB
to/TO
look/VB
for/IN
a/DT
new/JJ
theme/NN
now/RB
and/CC
that/DT
theme/NN
will/MD
be/VB
a/DT
return/NN
to/TO
growth/NN
,/,
''/''
declares/VBZ
Mary/NNP
Farrell/NNP
,/,
a/DT
PaineWebber/NNP
analyst/NN
./.
Among/IN
her/PRP$
OTC/NNP
picks/NNS
are/VBP
Oshkosh/NNP
B'Gosh/NNP
and/CC
A&W/NNP
Brands/NNPS
./.
Like/IN
many/JJ
OTC/NNP
growth/NN
issues/NNS
,/,
they/PRP
have/VBP
market/NN
values/NNS
--/:
as/IN
measured/VBN
by/IN
stock/NN
price/NN
times/CC
shares/NNS
outstanding/JJ
--/:
of/IN
roughly/RB
$/$
100/CD
million/CD
to/TO
$/$
500/CD
million/CD
./.
Some/DT
like/VBP
to/TO
specialize/VB
in/IN
growth/NN
companies/NNS
whose/WP$
shares/NNS
have/VBP
n't/RB
traded/VBN
publicly/RB
very/RB
long/JJ
./.
These/DT
are/VBP
sometimes/RB
dubbed/VBN
``/``
emerging/VBG
''/''
growth/NN
companies/NNS
,/,
though/IN
they/PRP
also/RB
have/VBP
expanding-profit/JJ
track/NN
records/NNS
./.
While/IN
many/JJ
growth/NN
stocks/NNS
are/VBP
small/JJ
,/,
not/RB
all/DT
small/JJ
stocks/NNS
have/VBP
earnings-growth/JJ
momentum/NN
./.
That/DT
's/VBZ
an/DT
important/JJ
distinction/NN
because/IN
some/DT
analysts/NNS
and/CC
brokers/NNS
,/,
who/WP
perennially/RB
predict/VBP
that/IN
small/JJ
stocks/NNS
are/VBP
about/IN
to/TO
outperform/VB
bigger/JJR
issues/NNS
,/,
may/MD
use/VB
any/DT
spurt/NN
in/IN
growth/NN
issues/NNS
to/TO
help/VB
them/PRP
sell/VB
all/DT
small/JJ
stocks/NNS
./.
``/``
You/PRP
can/MD
find/VB
some/DT
good/JJ
,/,
quality/NN
companies/NNS
over/IN
the/DT
counter/NN
,/,
''/''
but/CC
investors/NNS
should/MD
be/VB
selective/JJ
,/,
says/VBZ
John/NNP
Palicka/NNP
,/,
chief/JJ
portfolio/NN
manager/NN
at/IN
Midco/NNP
Investors/NNPS
,/,
a/DT
Newark/NNP
,/,
N.J./NNP
,/,
money/NN
management/NN
company/NN
with/IN
about/IN
$/$
900/CD
million/CD
invested/VBN
in/IN
growth/NN
stocks/NNS
of/IN
varying/VBG
sizes/NNS
./.
Mr./NNP
Palicka/NNP
's/POS
picks/NNS
from/IN
the/DT
OTC/NNP
market/NN
include/VBP
Legent/NNP
,/,
Mail/NNP
Boxes/NNPS
Etc./NNP
,/,
and/CC
Payco/NNP
American/NNP
./.
The/DT
main/JJ
argument/NN
for/IN
growth/NN
stocks/NNS
is/VBZ
their/PRP$
usually/RB
superior/JJ
performance/NN
in/IN
a/DT
slowing/VBG
economy/NN
./.
``/``
If/IN
the/DT
market/NN
refocuses/VB
on/IN
earnings/NNS
,/,
we/PRP
should/MD
get/VB
better/JJR
valuations/NNS
of/IN
growth/NN
stocks/NNS
,/,
''/''
says/VBZ
L./NNP
Keith/NNP
Mullins/NNP
,/,
a/DT
growth-stock/JJ
analyst/NN
at/IN
Morgan/NNP
Stanley/NNP
./.
Eventually/RB
,/,
he/PRP
believes/VBZ
,/,
investors/NNS
will/MD
be/VB
willing/JJ
to/TO
pay/VB
higher/JJR
prices/NNS
for/IN
companies/NNS
with/IN
proven/JJ
track/NN
records/NNS
of/IN
earnings/NNS
growth/NN
./.
In/IN
anticipation/NN
of/IN
that/DT
shift/NN
,/,
he/PRP
and/CC
other/JJ
analysts/NNS
are/VBP
encouraging/VBG
their/PRP$
clients/NNS
to/TO
buy/VB
such/JJ
issues/NNS
now/RB
./.
Understandably/RB
,/,
smaller/JJR
growth/NN
stocks/NNS
have/VBP
n't/RB
been/VBN
in/IN
favor/NN
recently/RB
./.
The/DT
average/JJ
issue/NN
on/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
500-stock/JJ
Index/NN
gained/VBD
35/CD
%/NN
last/JJ
year/NN
,/,
Ms./NNP
Farrell/NNP
of/IN
PaineWebber/NNP
says/VBZ
./.
Smaller-stock/JJR
earnings/NNS
,/,
by/IN
comparison/NN
,/,
rose/VBD
between/IN
15/CD
%/NN
and/CC
20/CD
%/NN
./.
In/IN
addition/NN
,/,
earnings/NNS
growth/NN
took/VBD
a/DT
back/JJ
seat/NN
to/TO
cash/NN
flow/NN
,/,
restructuring/NN
and/CC
takeover/NN
potential/NN
,/,
and/CC
breakup/NN
value/NN
as/IN
the/DT
preferred/JJ
stock-picking/JJ
standards/NNS
for/IN
much/JJ
of/IN
the/DT
year/NN
./.
Also/RB
,/,
the/DT
smaller/JJR
growth/NN
stocks/NNS
are/VBP
n't/RB
widely/RB
traded/VBN
,/,
and/CC
so/RB
are/VBP
harder/JJR
to/TO
buy/VB
and/CC
sell/VB
quickly/RB
than/IN
blue/JJ
chips/NNS
./.
As/IN
a/DT
result/NN
,/,
Morgan/NNP
Stanley/NNP
's/POS
Index/NN
of/IN
40/CD
Emerging/VBG
Growth/NN
Stocks/NNS
--/:
most/JJS
of/IN
which/WDT
are/VBP
in/IN
the/DT
OTC/NNP
market/NN
--/:
is/VBZ
up/RB
only/RB
13/CD
%/NN
for/IN
the/DT
year/NN
,/,
while/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
has/VBZ
leaped/VBN
24/CD
%/NN
and/CC
the/DT
S&P/NNP
500/CD
has/VBZ
grown/VBN
25/CD
%/NN
./.
The/DT
Nasdaq/NNP
Composite/NNP
has/VBZ
gained/VBN
23/CD
%/NN
this/DT
year/NN
,/,
but/CC
that/DT
's/VBZ
largely/RB
due/JJ
to/TO
the/DT
100/CD
largest/JJS
nonfinancial/JJ
stocks/NNS
,/,
which/WDT
have/VBP
soared/VBN
30/CD
%/NN
./.
Some/DT
investors/NNS
are/VBP
skeptical/JJ
of/IN
growth/NN
stocks/NNS
because/IN
investing/VBG
in/IN
them/PRP
means/VBZ
ignoring/VBG
that/DT
maxim/NN
found/VBN
in/IN
the/DT
fine/JJ
print/NN
of/IN
some/DT
investment/NN
advertisements/NNS
--/:
that/IN
past/JJ
performance/NN
is/VBZ
n't/RB
indicative/JJ
of/IN
future/JJ
results/NNS
./.
``/``
People/NNS
are/VBP
naturally/RB
suspicious/JJ
of/IN
them/PRP
,/,
''/''
says/VBZ
Mr./NNP
Mullins/NNP
of/IN
Morgan/NNP
Stanley/NNP
./.
Among/IN
his/PRP$
favorites/NNS
in/IN
his/PRP$
firm/NN
's/POS
index/NN
are/VBP
Legent/NNP
,/,
Silicon/NNP
Graphics/NNPS
and/CC
Novell/NNP
./.
However/RB
,/,
more/JJR
money/NN
managers/NNS
are/VBP
reassured/VBN
that/DT
profit/NN
is/VBZ
regaining/VBG
importance/NN
./.
Mark/NNP
Schoeppner/NNP
,/,
portfolio/NN
manager/NN
at/IN
Pittsburgh-based/JJ
Quaker/NNP
Capital/NNP
Management/NNP
,/,
says/VBZ
that/IN
in/IN
reaction/NN
to/TO
nervousness/NN
about/IN
debt-laden/JJ
buy-out/NN
transactions/NNS
,/,
analysts/NNS
and/CC
investors/NNS
now/RB
appear/VBP
to/TO
be/VB
``/``
valuing/VBG
stock/NN
based/VBN
on/IN
future/JJ
earnings/NNS
as/IN
opposed/VBN
to/TO
the/DT
amount/NN
of/IN
debt/NN
the/DT
company/NN
can/MD
support/VB
./.
''/''
Barney/NNP
Hallingby/NNP
,/,
managing/VBG
director/NN
of/IN
research/NN
at/IN
Hambrecht/NNP
&/CC
Quist/NNP
,/,
also/RB
believes/VBZ
earnings/NNS
growth/NN
is/VBZ
beginning/VBG
to/TO
play/VB
a/DT
greater/JJR
part/NN
in/IN
investors/NNS
'/POS
buying/NN
decisions/NNS
./.
On/IN
Friday/NNP
,/,
Hambrecht/NNP
&/CC
Quist/NNP
added/VBD
St./NNP
Jude/NNP
Medical/NNP
to/TO
the/DT
list/NN
of/IN
20/CD
stocks/NNS
it/PRP
strongly/RB
recommends/VBZ
./.
The/DT
opinion/NN
is/VBZ
largely/RB
based/VBN
on/IN
the/DT
company/NN
's/POS
earnings/NN
momentum/NN
,/,
Mr./NNP
Hallingby/NNP
says/VBZ
./.
St./NNP
Jude/NNP
's/POS
market/NN
value/NN
on/IN
Nasdaq/NNP
exceeds/VBZ
$/$
1/CD
billion/CD
,/,
so/CC
it/PRP
is/VBZ
n't/RB
a/DT
small/JJ
stock/NN
./.
The/DT
medical/JJ
devices/NNS
maker/NN
's/POS
earnings/NNS
rose/VBD
nearly/RB
35/CD
%/NN
in/IN
1987/CD
from/IN
1986/CD
,/,
and/CC
75/CD
%/NN
in/IN
1988/CD
./.
Kurt/NNP
Kruger/NNP
,/,
who/WP
follows/VBZ
the/DT
stock/NN
for/IN
Hambrecht/NNP
&/CC
Quist/NNP
,/,
anticipates/VBZ
that/IN
the/DT
company/NN
's/POS
net/JJ
income/NN
will/MD
grow/VB
51/CD
%/NN
to/TO
$/$
2.15/CD
a/DT
share/NN
this/DT
year/NN
./.
St./NNP
Jude/NNP
finished/VBD
up/IN
1\/4/CD
to/TO
44/CD
1\/2/CD
on/IN
Friday/NNP
./.
Friday/NNP
's/POS
Market/NN
Activity/NN
The/DT
Nasdaq/NNP
Composite/NN
Index/NN
eased/VBN
0.13/CD
to/TO
470.67/CD
./.
The/DT
composite/NN
finished/VBD
up/RB
0.7/CD
%/NN
from/IN
last/JJ
Friday/NNP
's/POS
close/NN
./.
It/PRP
was/VBD
a/DT
busy/JJ
week/NN
for/IN
OTC/NNP
stocks/NNS
./.
Friday/NNP
's/POS
volume/NN
totaled/VBD
158.2/CD
million/CD
shares/NNS
;/:
the/DT
daily/JJ
average/NN
for/IN
the/DT
week/NN
was/VBD
a/DT
bustling/JJ
176.7/CD
million/CD
./.
Valley/NNP
National/NNP
lost/VBD
1/CD
3\/8/CD
to/TO
17/CD
1\/8/CD
on/IN
volume/NN
of/IN
1.9/CD
million/CD
shares/NNS
./.
The/DT
company/NN
reported/VBD
a/DT
big/JJ
third-quarter/JJ
loss/NN
on/IN
Thursday/NNP
./.
Merchants/NNPS
Bank/NNP
of/IN
New/NNP
York/NNP
lost/VBD
1/CD
to/TO
106/CD
after/IN
reporting/VBG
that/IN
its/PRP$
third-quarter/JJ
net/JJ
income/NN
fell/VBD
to/TO
$/$
1.62/CD
a/DT
share/NN
from/IN
last/JJ
year/NN
's/POS
$/$
1.67/CD
a/DT
share/NN
./.
Eliot/NNP
Savings/NNPS
Bank/NNP
lost/VBD
7\/8/CD
to/TO
1/CD
5\/8/CD
after/IN
reporting/VBG
that/IN
it/PRP
had/VBD
a/DT
$/$
4.8/CD
million/CD
loss/NN
in/IN
the/DT
latest/JJS
third/JJ
quarter/NN
mostly/RB
because/IN
of/IN
loan-loss/JJ
provisions/NNS
./.
In/IN
the/DT
1988/CD
quarter/NN
,/,
the/DT
bank/NN
earned/VBD
$/$
1.1/CD
million/CD
./.
One/CD
bank/NN
stock/NN
was/VBD
a/DT
winner/NN
./.
BanPonce/NNP
jumped/VBD
4/CD
1\/2/CD
to/TO
47/CD
3\/4/CD
after/IN
agreeing/VBG
to/TO
be/VB
acquired/VBN
by/IN
Banco/NNP
Popular/NNP
de/FW
Puerto/NNP
Rico/NNP
for/IN
$/$
56.25/CD
a/DT
share/NN
./.
Banco/NNP
Popular/NNP
,/,
meanwhile/RB
,/,
dropped/VBD
1/CD
1\/4/CD
to/TO
21/CD
1\/2/CD
./.
Sierra/NNP
Tucson/NNP
,/,
an/DT
initial/JJ
public/NN
offering/NN
,/,
made/VBD
the/DT
most/RBS
active/JJ
list/NN
./.
The/DT
company/NN
's/POS
shares/NNS
began/VBD
trading/NN
at/IN
12/CD
1\/2/CD
,/,
up/IN
from/IN
its/PRP$
initial/JJ
offering/NN
price/NN
of/IN
12/CD
,/,
and/CC
closed/VBD
at/IN
13/CD
./.
Sierra/NNP
Tucson/NNP
operates/VBZ
an/DT
addiction/NN
treatment/NN
center/NN
./.
Among/IN
declining/VBG
issues/NNS
,/,
a/DT
weak/JJ
earnings/NNS
outlook/NN
drove/VBD
Groundwater/NNP
Technology/NNP
down/RB
6/CD
1\/4/CD
to/TO
24/CD
./.
The/DT
company/NN
said/VBD
results/NNS
for/IN
its/PRP$
second/JJ
quarter/NN
ended/VBN
Oct./NNP
28/CD
could/MD
drop/VB
as/RB
much/JJ
as/IN
20/CD
%/NN
below/IN
the/DT
30/CD
cents/NNS
a/DT
share/NN
reported/VBN
in/IN
the/DT
year-earlier/JJ
quarter/NN
./.
Medstone/NNP
International/NNP
plummeted/VBD
3/CD
1\/4/CD
to/TO
7/CD
1\/4/CD
./.
A/DT
Food/NNP
and/CC
Drug/NNP
Administration/NNP
advisory/JJ
panel/NN
has/VBZ
asked/VBN
that/IN
Medstone/NNP
perform/VB
more/JJR
studies/NNS
on/IN
its/PRP$
device/NN
to/TO
treat/VB
gallstones/NNS
./.
Qintex/NNP
Entertainment/NNP
dropped/VBD
2/CD
5\/8/CD
to/TO
1/CD
1\/2/CD
after/IN
seeking/VBG
protection/NN
from/IN
creditor/NN
lawsuits/NNS
under/IN
Chapter/NN
11/CD
of/IN
the/DT
federal/JJ
Bankruptcy/NNP
Code/NNP
for/IN
itself/PRP
and/CC
its/PRP$
two/CD
operating/NN
subsidiaries/NNS
,/,
Hal/NNP
Roach/NNP
Studios/NNPS
and/CC
Qintex/NNP
Productions/NNPS
./.
Raymond/NNP
Corp./NNP
lost/VBD
1/CD
to/TO
10/CD
after/IN
it/PRP
said/VBD
late/JJ
Thursday/NNP
that/IN
it/PRP
will/MD
take/VB
a/DT
$/$
4.4/CD
million/CD
charge/NN
in/IN
its/PRP$
third/JJ
quarter/NN
for/IN
reserves/NNS
to/TO
cover/VB
potential/JJ
charges/NNS
in/IN
connection/NN
with/IN
the/DT
closing/NN
and/CC
sale/NN
of/IN
a/DT
manufacturing/VBG
plant/NN
./.
As/IN
a/DT
result/NN
,/,
the/DT
company/NN
has/VBZ
suspended/VBN
its/PRP$
quarterly/JJ
dividend/NN
./.
McCaw/NNP
Cellular/NNP
Communications/NNPS
and/CC
its/PRP$
target/NN
,/,
LIN/NNP
Broadcasting/NNP
,/,
were/VBD
active/JJ
./.
LIN/NNP
added/VBD
5\/8/CD
to/TO
110/CD
5\/8/CD
and/CC
McCaw/NNP
lost/VBD
1\/4/CD
to/TO
41/CD
./.
McCaw/NNP
said/VBD
it/PRP
has/VBZ
secured/VBN
commitments/NNS
from/IN
three/CD
banks/NNS
to/TO
help/VB
finance/VB
its/PRP$
$/$
125-a-share/JJ
bid/NN
for/IN
22/CD
million/CD
of/IN
Lin/NNP
's/POS
shares/NNS
./.
McCaw/NNP
has/VBZ
called/VBN
for/IN
a/DT
``/``
fair/JJ
auction/NN
''/''
of/IN
LIN/NNP
,/,
which/WDT
earlier/RB
entered/VBD
a/DT
stock-swap/JJ
merger/NN
pact/NN
with/IN
BellSouth/NNP
./.
Following/VBG
the/DT
release/NN
of/IN
the/DT
company/NN
's/POS
fourth-quarter/JJ
earnings/NNS
,/,
Apple/NNP
Computer/NNP
dropped/VBD
3\/4/CD
to/TO
48/CD
on/IN
volume/NN
of/IN
more/JJR
than/IN
2.3/CD
million/CD
shares/NNS
./.
Apple/NNP
earned/VBD
$/$
161.1/CD
million/CD
,/,
or/CC
$/$
1.24/CD
a/DT
share/NN
,/,
in/IN
the/DT
quarter/NN
,/,
including/VBG
$/$
48/CD
million/CD
from/IN
the/DT
sale/NN
of/IN
its/PRP$
Adobe/NNP
Systems/NNPS
stock/NN
./.
The/DT
following/JJ
were/VBD
among/IN
Friday/NNP
's/POS
offerings/NNS
and/CC
pricings/NNS
in/IN
the/DT
U.S./NNP
and/CC
non-U.S./JJ
capital/NN
markets/NNS
,/,
with/IN
terms/NNS
and/CC
syndicate/NN
manager/NN
,/,
as/IN
compiled/VBN
by/IN
Dow/NNP
Jones/NNP
Capital/NNP
Markets/NNPS
Report/NNP
:/:
Chicago/NNP
&/CC
North/NNP
Western/NNP
Acquisition/NNP
Corp./NNP
--/:
$/$
475/CD
million/CD
of/IN
senior/JJ
subordinated/JJ
resettable/JJ
debentures/NNS
,/,
due/JJ
Oct./NNP
15/CD
,/,
2001/CD
,/,
priced/VBN
at/IN
par/JJ
to/TO
yield/VB
14.75/CD
%/NN
./.
The/DT
coupon/NN
will/MD
be/VB
reset/VB
in/IN
one/CD
year/NN
at/IN
a/DT
rate/NN
that/WDT
will/MD
give/VB
the/DT
issue/NN
a/DT
market/NN
value/NN
of/IN
101/CD
./.
However/RB
,/,
the/DT
maximum/NN
coupon/NN
rate/NN
on/IN
the/DT
issue/NN
when/WRB
it/PRP
is/VBZ
reset/NN
can/MD
only/RB
be/VB
15.5/CD
%/NN
./.
Debenture/NN
holders/NNS
will/MD
also/RB
receive/VB
the/DT
equivalent/NN
of/IN
10/CD
%/NN
of/IN
the/DT
common/JJ
stock/NN
of/IN
CNW/NNP
Holdings/NNPS
./.
The/DT
equity/NN
kicker/NN
is/VBZ
not/RB
attached/VBN
to/TO
the/DT
offering/NN
,/,
but/CC
underwriters/NNS
said/VBD
it/PRP
will/MD
be/VB
offered/VBN
after/IN
a/DT
filing/NN
for/IN
68,548/CD
common/JJ
shares/NNS
of/IN
CNW/NNP
Holdings/NNPS
is/VBZ
declared/VBN
effective/JJ
by/IN
the/DT
Securities/NNPS
&/CC
Exchange/NNP
Commission/NNP
./.
The/DT
issue/NN
is/VBZ
noncallable/JJ
for/IN
five/CD
years/NNS
and/CC
has/VBZ
a/DT
sinking/VBG
fund/NN
starting/VBG
in/IN
2000/CD
to/TO
retire/VB
50/CD
%/NN
of/IN
the/DT
issue/NN
before/IN
maturity/NN
./.
Rated/VBN
single-B-2/JJ
by/IN
Moody/NNP
's/POS
Investors/NNPS
Service/NNP
Inc./NNP
and/CC
single-B-minus/JJ
by/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NNP
,/,
the/DT
issue/NN
will/MD
be/VB
sold/VBN
through/IN
underwriters/NNS
led/VBN
by/IN
Donaldson/NNP
Lufkin/NNP
&/CC
Jenrette/NNP
Securities/NNPS
Corp/NNP
./.
Tokuyama/NNP
Soda/NNP
Co/NNP
./.
Japan/NNP
$/$
200/CD
million/CD
of/IN
Eurobonds/NNS
due/JJ
Nov./NNP
9/CD
,/,
1993/CD
,/,
with/IN
equity-purchase/JJ
warrants/NNS
,/,
indicating/VBG
a/DT
4/CD
%/NN
coupon/NN
at/IN
par/JJ
,/,
via/IN
Nomura/NNP
International/NNP
Ltd/NNP
./.
Each/DT
$/$
5,000/CD
bond/NN
carries/VBZ
one/CD
warrant/NN
,/,
exercisable/JJ
from/IN
Nov./NNP
28/CD
,/,
1989/CD
,/,
through/IN
Oct./NNP
28/CD
,/,
1993/CD
,/,
to/TO
buy/VB
company/NN
shares/NNS
at/IN
an/DT
expected/JJ
premium/NN
of/IN
2/CD
1\/2/CD
%/NN
to/TO
the/DT
closing/NN
share/NN
price/NN
when/WRB
terms/NNS
are/VBP
fixed/VBN
Oct./NNP
27/CD
./.
For/IN
bankers/NNS
and/CC
regulators/NNS
,/,
Arizona/NNP
is/VBZ
looking/VBG
more/RBR
like/IN
Texas/NNP
every/DT
day/NN
./.
On/IN
Friday/NNP
,/,
Los/NNP
Angeles-based/JJ
First/NNP
Interstate/NNP
Bancorp/NNP
said/VBD
it/PRP
expects/VBZ
a/DT
net/JJ
loss/NN
of/IN
$/$
16/CD
million/CD
for/IN
the/DT
third/JJ
quarter/NN
of/IN
1989/CD
because/RB
of/IN
hemorrhaging/NN
at/IN
its/PRP$
First/NNP
Interstate/NNP
Bank/NNP
of/IN
Arizona/NNP
unit/NN
./.
First/NNP
Interstate/NNP
said/VBD
the/DT
unit/NN
,/,
bludgeoned/VBN
by/IN
Arizona/NNP
's/POS
worsening/VBG
real-estate/NN
woes/NNS
,/,
will/MD
have/VB
a/DT
$/$
174/CD
million/CD
loss/NN
for/IN
the/DT
quarter/NN
./.
First/NNP
Interstate/NNP
took/VBD
a/DT
huge/JJ
$/$
350/CD
million/CD
provision/NN
for/IN
loan/NN
losses/NNS
at/IN
the/DT
Arizona/NNP
bank/NN
./.
It/PRP
charged/VBD
off/RP
an/DT
estimated/VBN
$/$
200/CD
million/CD
of/IN
Arizona/NNP
loans/NNS
,/,
leaving/VBG
the/DT
unit/NN
with/IN
a/DT
reserve/NN
for/IN
future/JJ
losses/NNS
of/IN
$/$
255/CD
million/CD
,/,
about/IN
61/CD
%/NN
of/IN
its/PRP$
$/$
416/CD
million/CD
of/IN
troubled/JJ
loans/NNS
and/CC
repossessed/JJ
real/JJ
estate/NN
./.
First/NNP
Interstate/NNP
made/VBD
the/DT
move/NN
under/IN
pressure/NN
from/IN
regulators/NNS
./.
The/DT
action/NN
capped/VBD
a/DT
spurt/NN
of/IN
grim/JJ
Arizona/NNP
banking/NN
news/NN
for/IN
the/DT
third/JJ
quarter/NN
,/,
and/CC
emphatically/RB
signaled/VBD
that/IN
Arizona/NNP
is/VBZ
challenging/VBG
Texas/NNP
's/POS
long/JJ
reign/NN
as/IN
banking/NN
's/POS
busiest/JJS
graveyard/NN
./.
Earlier/RBR
last/JJ
week/NN
,/,
Valley/NNP
National/NNP
Corp./NNP
,/,
the/DT
state/NN
's/POS
largest/JJS
locally/RB
owned/JJ
banking/VBG

company/NN
,/,
reported/VBD
a/DT
$/$
72.2/CD
million/CD
loss/NN
and/CC
suspended/VBD
its/PRP$
dividend/NN
./.
Pinnacle/NNP
West/NNP
Capital/NNP
Corp./NNP
,/,
which/WDT
has/VBZ
been/VBN
wrangling/VBG
with/IN
regulators/NNS
for/IN
months/NNS
over/IN
what/WP
to/TO
do/VB
about/IN
Pinnacle/NNP
's/POS
moribund/JJ
Merabank/NNP
thrift/NN
unit/NN
,/,
suspended/VBD
its/PRP$
dividend/NN
and/CC
reported/VBD
a/DT
91/CD
%/NN
plunge/NN
in/IN
third-quarter/JJ
net/JJ
income/NN
./.
Security/NNP
Pacific/NNP
Corp./NNP
said/VBD
third-quarter/JJ
credit/NN
losses/NNS
surged/VBD
a/DT
third/JJ
to/TO
$/$
109/CD
million/CD
,/,
mainly/RB
because/IN
of/IN
sour/JJ
Arizona/NNP
real-estate/JJ
loans/NNS
./.
New/NNP
York-based/JJ
Chase/NNP
Manhattan/NNP
Corp./NNP
took/VBD
an/DT
$/$
85/CD
million/CD
Arizona-related/JJ
charge/NN
./.
Furthermore/RB
,/,
the/DT
regulatory/JJ
maneuvering/NN
behind/IN
First/NNP
Interstate/NNP
's/POS
loss/NN
suggests/VBZ
regulators/NNS
have/VBP
concluded/VBN
that/IN
lenders/NNS
'/POS
reserves/NNS
are/VBP
far/RB
too/RB
low/JJ
to/TO
absorb/VB
their/PRP$
future/JJ
Arizona/NNP
losses/NNS
and/CC
are/VBP
forcing/VBG
bankers/NNS
to/TO
do/VB
something/NN
about/IN
it/PRP
./.
Examiners/NNS
from/IN
the/DT
Office/NNP
of/IN
the/DT
Comptroller/NNP
of/IN
the/DT
Currency/NNP
had/VBD
been/VBN
combing/VBG
through/IN
First/NNP
Interstate/NNP
's/POS
real-estate/NN
portfolio/NN
since/IN
last/JJ
month/NN
;/:
they/PRP
first/RB
recommended/VBD
that/IN
First/NNP
Interstate/NNP
take/VB
a/DT
provision/NN
that/WDT
was/VBD
less/JJR
than/IN
the/DT
eventual/JJ
$/$
350/CD
million/CD
third-quarter/JJ
hit/NN
./.
When/WRB
First/NNP
Interstate/NNP
balked/VBD
,/,
arguing/VBG
that/IN
the/DT
figure/NN
was/VBD
too/RB
high/JJ
,/,
regulators/NNS
responded/VBD
by/IN
raising/VBG
their/PRP$
recommendation/NN
to/TO
$/$
350/CD
million/CD
./.
``/``
At/IN
that/DT
point/NN
,/,
{/(
First/NNP
Interstate/NNP
it/PRP
was/VBD
the/DT
better/JJR
part/NN
of/IN
valor/NN
not/RB
to/TO
negotiate/VB
further/RBR
,/,
''/''
said/VBD
one/CD
industry/NN
official/NN
close/JJ
to/TO
the/DT
talks/NNS
./.
Thomas/NNP
P./NNP
Marrie/NNP
,/,
chief/JJ
financial/JJ
officer/NN
,/,
would/MD
n't/RB
comment/VB
about/IN
the/DT
details/NNS
of/IN
the/DT
negotiations/NNS
./.
He/PRP
said/VBD
the/DT
provision/NN
``/``
was/VBD
n't/RB
forced/VBN
upon/IN
us/PRP
,/,
but/CC
the/DT
regulators/NNS
made/VBD
it/PRP
very/RB
clear/JJ
what/WP
they/PRP
thought/VBD
was/VBD
an/DT
appropriate/JJ
number/NN
./.
''/''
The/DT
tough/JJ
regulatory/JJ
stance/NN
portends/VBZ
large/JJ
future/JJ
losses/NNS
,/,
especially/RB
at/IN
the/DT
state/NN
's/POS
thrifts/NNS
./.
At/IN
least/JJS
six/CD
of/IN
Arizona/NNP
's/POS
12/CD
savings/NNS
and/CC
loan/NN
institutions/NNS
have/VBP
either/RB
been/VBN
taken/VBN
over/RB
by/IN
the/DT
government/NN
's/POS
conservatorship/NN
program/NN
or/CC
are/VBP
essentially/RB
insolvent/JJ
;/:
they/PRP
are/VBP
sitting/VBG
on/IN
enormous/JJ
unrecognized/JJ
losses/NNS
./.
For/IN
example/NN
,/,
Western/NNP
Savings/NNPS
&/CC
Loan/NNP
Association/NNP
,/,
which/WDT
is/VBZ
now/RB
in/IN
conservatorship/NN
,/,
had/VBD
tangible/JJ
capital-assets/NNS
minus/CC
liabilities/NNS
--/:
of/IN
a/DT
negative/JJ
$/$
357.4/CD
million/CD
at/IN
June/NNP
30/CD
./.
It/PRP
had/VBD
a/DT
$/$
258.9/CD
million/CD
loss/NN
in/IN
the/DT
second/JJ
quarter/NN
./.
Yet/CC
it/PRP
still/RB
held/VBD
$/$
916.3/CD
million/CD
of/IN
repossessed/JJ
real/JJ
estate/NN
,/,
for/IN
which/WDT
it/PRP
maintains/VBZ
no/DT
reserves/NNS
whatsoever/RB
./.
It/PRP
also/RB
had/VBD
$/$
479.7/CD
million/CD
of/IN
past-due/JJ
loans/NNS
;/:
its/PRP$
level/NN
of/IN
reserves/NNS
against/IN
those/DT
was/VBD
n't/RB
immediately/RB
available/JJ
,/,
though/IN
it/PRP
is/VBZ
believed/VBN
to/TO
be/VB
small/JJ
./.
The/DT
rapid/JJ
deterioration/NN
of/IN
the/DT
Arizona/NNP
thrifts/NNS
only/RB
adds/VBZ
to/TO
the/DT
ever-swelling/JJ
cost/NN
of/IN
the/DT
government/NN
's/POS
massive/JJ
thrift/NN
bailout/NN
,/,
officially/RB
estimated/VBN
at/IN
about/IN
$/$
166/CD
billion/CD
./.
Together/RB
,/,
the/DT
six/CD
government-controlled/JJ
or/CC
essentially/RB
insolvent/JJ
Arizona/NNP
thrifts/NNS
have/VBP
tangible/JJ
capital/NN
of/IN
a/DT
negative/JJ
$/$
1.5/CD
billion/CD
,/,
foreclosed/VBN|JJ
property/NN
of/IN
$/$
1.8/CD
billion/CD
and/CC
pastdue/JJ
loans/NNS
of/IN
$/$
1.63/CD
billion/CD
./.
They/PRP
have/VBP
no/DT
reserves/NNS
against/IN
the/DT
real/JJ
estate/NN
,/,
and/CC
their/PRP$
reserves/NNS
against/IN
the/DT
loans/NNS
are/VBP
miniscule/JJ
compared/VBN
with/IN
the/DT
levels/NNS
of/IN
reserves/NNS
banks/NNS
are/VBP
moving/VBG
to/TO
set/VB
up/RP
./.
The/DT
thrifts/NNS
had/VBD
a/DT
combined/JJ
loss/NN
of/IN
$/$
487.8/CD
million/CD
in/IN
the/DT
second/JJ
quarter/NN
./.
Other/JJ
lenders/NNS
have/VBP
been/VBN
recovering/VBG
only/RB
50/CD
cents/NNS
to/TO
60/CD
cents/NNS
on/IN
the/DT
dollar/NN
on/IN
foreclosed/VBN|JJ
Arizona/NNP
property/NN
,/,
if/IN
they/PRP
can/MD
sell/VB
it/PRP
at/IN
all/DT
./.
All/PDT
this/DT
havoc/NN
is/VBZ
the/DT
result/NN
of/IN
one/CD
of/IN
the/DT
worst/JJS
busts/NNS
in/IN
Arizona/NNP
's/POS
boom-and-bust/JJ
history/NN
,/,
compounded/VBN
by/IN
some/DT
of/IN
the/DT
usual/JJ
suspects/NNS
in/IN
1980s/NNS
banking/NN
debacles/NNS
:/:
greed/NN
,/,
fraud/NN
and/CC
plain/JJ
bad/JJ
banking/NN
./.
In/IN
the/DT
late/JJ
1970s/NNS
and/CC
early/RB
1980s/NNS
,/,
lenders/NNS
and/CC
developers/NNS
poured/VBD
money/NN
into/IN
office/NN
buildings/NNS
,/,
condominiums/NNS
and/CC
massive/JJ
tracts/NNS
of/IN
raw/JJ
desert/NN
land/NN
,/,
confident/JJ
that/IN
Arizona/NNP
's/POS
population/NN
would/MD
grow/VB
at/IN
annual/JJ
rates/NNS
of/IN
4/CD
%/NN
to/TO
6/CD
%/NN
for/IN
years/NNS
to/TO
come/VB
./.
Now/RB
,/,
annual/JJ
population/NN
growth/NN
is/VBZ
running/VBG
at/IN
about/IN
2/CD
%/NN
a/DT
year/NN
,/,
some/DT
desert/NN
tracts/NNS
bought/VBD
three/CD
years/NNS
ago/RB
for/IN
$/$
90,000/CD
an/DT
acre/NN
are/VBP
being/VBG
sold/VBN
at/IN
$/$
25,000/CD
an/DT
acre/NN
and/CC
Phoenix/NNP
has/VBZ
a/DT
seven-year/JJ
supply/NN
of/IN
unoccupied/JJ
office/NN
space/NN
./.
``/``
It/PRP
's/VBZ
horrible/JJ
to/TO
say/VB
,/,
but/CC
it/PRP
's/VBZ
unfortunate/JJ
that/IN
earthquake/NN
was/VBD
n't/RB
in/IN
Phoenix/NNP
--/:
it/PRP
might/MD
have/VB
knocked/VBN
out/RP
some/DT
of/IN
our/PRP$
empty/JJ
buildings/NNS
,/,
''/''
said/VBD
C.W./NNP
Jackson/NNP
,/,
a/DT
prominent/JJ
Arizona/NNP
businessman/NN
with/IN
interests/NNS
in/IN
real/JJ
estate/NN
,/,
banking/NN
and/CC
many/JJ
other/JJ
businesses/NNS
./.
Many/JJ
Arizona/NNP
real-estate/NN
experts/NNS
think/VBP
the/DT
worst/JJS
may/MD
be/VB
yet/RB
to/TO
come/VB
./.
Ralph/NNP
Shattuck/NNP
,/,
publisher/NN
of/IN
Foreclosure/NNP
Update/NNP
newsletter/NN
,/,
said/VBD
foreclosures/NNS
have/VBP
climbed/VBN
to/TO
about/IN
1,482/CD
a/DT
month/NN
just/RB
in/IN
Maricopa/NNP
County/NNP
,/,
where/WRB
Phoenix/NNP
is/VBZ
located/VBN
./.
That/DT
's/VBZ
up/RB
from/IN
about/IN
687/CD
a/DT
month/NN
in/IN
1985/CD
,/,
and/CC
it/PRP
's/VBZ
accelerating/VBG
:/:
So/RB
far/RB
this/DT
month/NN
,/,
foreclosures/NNS
are/VBP
averaging/VBG
about/IN
85/CD
a/DT
day/NN
./.
``/``
It/PRP
's/VBZ
frightening/JJ
,/,
''/''
Mr./NNP
Shattuck/NNP
said/VBD
./.
Moreover/RB
,/,
Mr./NNP
Shattuck/NNP
and/CC
others/NNS
said/VBD
residential/JJ
real/JJ
estate/NN
,/,
which/WDT
had/VBD
remained/VBN
fairly/RB
strong/JJ
through/IN
most/JJS
of/IN
the/DT
downturn/NN
,/,
is/VBZ
beginning/VBG
to/TO
comprise/VB
more/JJR
and/CC
more/JJR
of/IN
the/DT
foreclosures/NNS
./.
And/CC
the/DT
generally/RB
frail/JJ
condition/NN
of/IN
Arizona/NNP
's/POS
lenders/NNS
means/VBZ
there/EX
is/VBZ
little/JJ
capital/NN
available/JJ
in/IN
the/DT
state/NN
to/TO
shore/NN
up/RP
the/DT
economy/NN
and/CC
slow/VB
down/RP
the/DT
slide/NN
./.
``/``
It/PRP
's/VBZ
reasonable/JJ
to/TO
say/VB
there/EX
is/VBZ
not/RB
a/DT
solvent/JJ
S&L/NN
in/IN
the/DT
state/NN
and/CC
the/DT
amount/NN
of/IN
viable/JJ
bank/NN
capital/NN
is/VBZ
very/RB
low/JJ
,/,
''/''
said/VBD
Mr./NNP
Jackson/NNP
./.
``/``
We/PRP
're/VBP
going/VBG
to/TO
see/VB
another/DT
big/JJ
wave/NN
of/IN
failures/NNS
and/CC
defaults/NNS
between/IN
now/RB
and/CC
year-end/RB
.../:
./.
The/DT
only/JJ
thing/NN
a/DT
lot/NN
of/IN
these/DT
lenders/NNS
can/MD
get/VB
out/IN
of/IN
their/PRP$
mouth/NN
now/RB
is/VBZ
:/:
`/``
Pay/VB
me/PRP
in/IN
60/CD
days/NNS
./.
'/''
''/''
First/NNP
Interstate/NNP
had/VBD
a/DT
$/$
214.4/CD
million/CD
loss/NN
in/IN
1988/CD
's/POS
third/JJ
quarter/NN
,/,
mainly/RB
from/IN
writedowns/NNS
and/CC
reserves/NNS
connected/VBN
with/IN
its/PRP$
Texas/NNP
operations/NNS
./.
For/IN
the/DT
six/CD
months/NNS
ended/VBN
June/NNP
30/CD
,/,
it/PRP
reported/VBD
net/JJ
income/NN
of/IN
$/$
234.3/CD
million/CD
,/,
or/CC
$/$
4.83/CD
a/DT
share/NN
,/,
including/VBG
$/$
46/CD
million/CD
from/IN
tax/NN
credits/NNS
and/CC
accounting/NN
changes/NNS
./.
The/DT
bank/NN
's/POS
Arizona/NNP
unit/NN
holds/VBZ
about/IN
$/$
6/CD
billion/CD
of/IN
First/NNP
Interstate/NNP
's/POS
$/$
50/CD
billion/CD
of/IN
assets/NNS
./.
Mr./NNP
Marrie/NNP
said/VBD
the/DT
bank/NN
expects/VBZ
Arizona/NNP
real-estate/NN
prices/NNS
,/,
which/WDT
plummeted/VBD
40/CD
%/NN
over/IN
the/DT
last/JJ
year/NN
,/,
to/TO
fall/VB
another/DT
20/CD
%/NN
before/IN
stabilizing/VBG
./.
Some/DT
in/IN
Arizona/NNP
think/VBP
that/IN
may/MD
be/VB
optimistic/JJ
./.
First/NNP
Interstate/NNP
said/VBD
its/PRP$
operations/NNS
outside/JJ
of/IN
Arizona/NNP
``/``
achieved/VBD
results/NNS
as/IN
expected/VBN
for/IN
the/DT
quarter/NN
,/,
''/''
but/CC
did/VBD
n't/RB
specify/VB
the/DT
results/NNS
./.
First/NNP
Interstate/NNP
stock/NN
closed/VBD
at/IN
$/$
57.625/CD
,/,
down/RB
25/CD
cents/NNS
,/,
in/IN
composite/JJ
trading/NN
Friday/NNP
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
Since/IN
its/PRP$
unsuccessful/JJ
bid/NN
for/IN
BankAmerica/NNP
Corp./NNP
in/IN
1986/CD
,/,
the/DT
bank/NN
has/VBZ
undertaken/VBN
a/DT
major/JJ
restructuring/NN
in/IN
an/DT
effort/NN
to/TO
cut/VB
costs/NNS
and/CC
boost/VB
performance/NN
,/,
but/CC
many/JJ
industry/NN
officials/NNS
believe/VBP
it/PRP
may/MD
be/VB
ripe/JJ
for/IN
a/DT
takeover/NN
bid/NN
,/,
especially/RB
with/IN
interstate/JJ
banking/NN
set/VBN
to/TO
begin/VB
in/IN
California/NNP
in/IN
1991/CD
./.
Mr./NNP
Marrie/NNP
said/VBD
the/DT
problems/NNS
in/IN
Arizona/NNP
have/VBP
only/RB
``/``
increased/VBN
our/PRP$
resolve/NN
to/TO
continue/VB
to/TO
make/VB
our/PRP$
restructuring/NN
even/RB
more/RBR
effective/JJ
./.
''/''
Separately/RB
,/,
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NN
lowered/VBD
its/PRP$
ratings/NNS
on/IN
Valley/NNP
National/NNP
Corp./NNP
's/POS
senior/JJ
debt/NN
to/TO
double-B/JJ
from/IN
double-B-plus/JJ
,/,
affecting/VBG
about/IN
$/$
300/CD
million/CD
of/IN
long-term/JJ
debt/NN
./.
S&P/NNP
also/RB
lowered/VBD
ratings/NNS
on/IN
unsecured/JJ
deposits/NNS
and/CC
issues/NNS
backed/VBN
by/IN
a/DT
letter/NN
of/IN
credit/NN
from/IN
the/DT
bank/NN
holding/VBG
company/NN
's/POS
principal/JJ
unit/NN
,/,
Valley/NNP
National/NNP
Bank/NNP
of/IN
Arizona/NNP
./.
The/DT
ratings/NNS
service/NN
said/VBD
the/DT
downgrades/NNS
reflect/VBP
the/DT
continued/JJ
slide/NN
in/IN
the/DT
company/NN
's/POS
financial/JJ
condition/NN
./.
A/DT
spokesman/NN
for/IN
Phoenix/NNP
,/,
Ariz.-based/JJ
Valley/NNP
National/NNP
,/,
said/VBD
the/DT
concern/NN
will/MD
be/VB
able/JJ
to/TO
withstand/VB
the/DT
current/JJ
downturn/NN
in/IN
Arizona/NNP
real/JJ
estate/NN
./.
Commercial/JJ
paper/NN
holders/NNS
have/VBP
reinvested/VBN
their/PRP$
funds/NNS
,/,
he/PRP
said/VBD
,/,
and/CC
consumer/NN
deposits/NNS
have/VBP
been/VBN
up/RB
in/IN
the/DT
last/JJ
few/JJ
days/NNS
./.
Immunex/NNP
Corp./NNP
said/VBD
its/PRP$
scientists/NNS
isolated/VBD
a/DT
molecule/NN
which/WDT
may/MD
hold/VB
potential/JJ
as/IN
a/DT
treatment/NN
for/IN
disruptions/NNS
of/IN
the/DT
immune-system/NN
,/,
ranging/VBG
from/IN
organ-transplant/NN
rejection/NN
,/,
to/TO
allergies/NNS
and/CC
asthma/NN
./.
The/DT
molecule/NN
is/VBZ
the/DT
mouse/NN
version/NN
of/IN
a/DT
protein/NN
called/VBN
the/DT
interleukin-4/NN
receptor/NN
./.
IL-4/NN
is/VBZ
a/DT
hormone/NN
which/WDT
directs/VBZ
the/DT
growth/NN
and/CC
function/NN
of/IN
white/JJ
blood/NN
cells/NNS
involved/VBN
in/IN
the/DT
body/NN
's/POS
immune/JJ
response/NN
./.
The/DT
IL-4/NN
receptor/NN
on/IN
the/DT
surface/NN
of/IN
such/JJ
cells/NNS
receives/VBZ
the/DT
hormone/NN
's/POS
message/NN
to/TO
rally/VB
the/DT
body/NN
's/POS
defense/NN
./.
But/CC
in/IN
certain/JJ
conditions/NNS
such/JJ
as/IN
autoimmune/JJ
diseases/NNS
and/CC
allergies/NNS
and/CC
transplant/NN
rejection/NN
,/,
doctors/NNS
would/MD
like/VB
to/TO
damp/VB
the/DT
immune/JJ
response/NN
so/IN
such/JJ
cells/NNS
do/VBP
n't/RB
touch/VB
off/RP
harmful/JJ
inflammatory/JJ
reactions/NNS
or/CC
cell/NN
destruction/NN
./.
A/DT
soluble/JJ
form/NN
of/IN
the/DT
receptor/NN
might/MD
turn/VB
off/RP
a/DT
specific/JJ
part/NN
of/IN
the/DT
immune/JJ
response/NN
without/IN
general/JJ
immune/JJ
suppression/NN
,/,
the/DT
company/NN
said/VBD
./.
The/DT
IL-4/NN
receptor/NN
is/VBZ
one/CD
of/IN
five/CD
such/JJ
receptors/NNS
to/TO
be/VB
developed/VBN
and/CC
tested/VBN
by/IN
Receptech/NNP
Corp./NNP
,/,
a/DT
spinoff/NN
of/IN
Immunex/NNP
,/,
through/IN
a/DT
proposed/VBN
$/$
30/CD
million/CD
initial/JJ
public/JJ
offering/NN
./.
Immunex/NNP
will/MD
contract/VB
with/IN
the/DT
spinoff/NN
to/TO
provide/VB
the/DT
research/NN
,/,
development/NN
and/CC
initial/JJ
testing/NN
of/IN
the/DT
new/JJ
agents/NNS
./.
Immunex/NNP
will/MD
have/VB
the/DT
option/NN
to/TO
buy/VB
back/RB
Receptech/NNP
shares/NNS
after/IN
five/CD
years/NNS
./.
The/DT
following/JJ
issues/NNS
were/VBD
recently/RB
filed/VBN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
:/:
Heller/NNP
Financial/NNP
Inc./NNP
,/,
an/DT
indirect/JJ
subsidiary/NN
of/IN
Fuji/NNP
Bank/NNP
Ltd./NNP
,/,
shelf/NN
offering/NN
of/IN
up/IN
to/TO
$/$
1/CD
billion/CD
debt/NN
securities/NNS
and/CC
warrants/NNS
./.
Jason/NNP
Overseas/NNP
Ltd./NNP
,/,
proposed/VBN
offering/VBG
of/IN
five/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
Smith/NNP
Barney/NNP
&/CC
Co./NNP
and/CC
Mabon/NNP
Nugent/NNP
&/CC
Co/NNP
./.
MCI/NNP
Communications/NNPS
Corp./NNP
,/,
shelf/NN
offering/NN
of/IN
up/IN
to/TO
$/$
750/CD
million/CD
of/IN
debt/NN
securities/NNS
via/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNPS
,/,
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
,/,
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
,/,
and/CC
Salomon/NNP
Brothers/NNPS
Inc/NNP
./.
Millicom/NNP
Inc./NNP
,/,
offering/NN
of/IN
$/$
60/CD
million/CD
subordinated/JJ
exchangeable/JJ
debentures/NNS
,/,
via/IN
Bear/NNP
,/,
Stearns/NNPS
&/CC
Co./NNP
Inc/NNP
./.
Union/NNP
Tank/NNP
Car/NNP
Co./NNP
,/,
offering/NN
of/IN
$/$
100/CD
million/CD
of/IN
equipment/NN
trust/NN
certificates/NNS
,/,
via/IN
Salomon/NNP
Brothers/NNPS
./.
Conner/NNP
Peripherals/NNPS
Inc./NNP
,/,
which/WDT
has/VBZ
a/DT
near-monopoly/NN
on/IN
a/DT
key/JJ
part/NN
used/VBN
in/IN
many/JJ
portable/JJ
computers/NNS
,/,
is/VBZ
on/IN
target/NN
to/TO
surpass/VB
Compaq/NNP
Computer/NNP
Corp./NNP
as/IN
the/DT
fastest-growing/JJS
start-up/NN
manufacturing/VBG
firm/NN
in/IN
U.S./NNP
business/NN
history/NN
./.
Conner/NNP
dominates/VBZ
the/DT
market/NN
for/IN
hard-disk/NN
drives/NNS
used/VBN
to/TO
store/NN
data/NN|NNS
in/IN
laptop/NN
computers/NNS
./.
It/PRP
said/VBD
yesterday/NN
that/IN
net/JJ
income/NN
for/IN
its/PRP$
third/JJ
quarter/NN
soared/VBD
72/CD
%/NN
to/TO
$/$
11.8/CD
million/CD
,/,
or/CC
28/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
6.8/CD
million/CD
,/,
or/CC
19/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
year-ago/JJ
period/NN
./.
Its/PRP$
revenue/NN
totaled/VBD
$/$
184.4/CD
million/CD
,/,
an/DT
increase/NN
of/IN
172/CD
%/NN
from/IN
$/$
67.8/CD
million/CD
a/DT
year/NN
ago/RB
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
the/DT
San/NNP
Jose/NNP
,/,
Calif.-based/JJ
company/NN
said/VBD
net/JJ
income/NN
jumped/VBD
84/CD
%/NN
to/TO
$/$
26.9/CD
million/CD
,/,
or/CC
69/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
14.6/CD
million/CD
,/,
or/CC
43/CD
cents/NNS
a/DT
share/NN
./.
Revenue/NN
nearly/RB
tripled/VBD
to/TO
$/$
479/CD
million/CD
,/,
from/IN
$/$
160/CD
million/CD
./.
Analysts/NNS
expect/VBP
Conner/NNP
's/POS
earnings/NNS
to/TO
reach/VB
roughly/RB
$/$
40/CD
million/CD
,/,
or/CC
$/$
1/CD
to/TO
$/$
1.05/CD
a/DT
share/NN
,/,
on/IN
sales/NNS
of/IN
$/$
650/CD
million/CD
,/,
for/IN
1989/CD
,/,
the/DT
company/NN
's/POS
third/JJ
full/JJ
year/NN
in/IN
business/NN
./.
That/DT
's/VBZ
a/DT
faster/JJR
growth/NN
rate/NN
than/IN
reported/VBN
by/IN
Compaq/NNP
,/,
which/WDT
did/VBD
n't/RB
post/IN
similar/JJ
results/NNS
until/IN
its/PRP$
fourth/JJ
year/NN
,/,
in/IN
1986/CD
./.
But/CC
Compaq/NNP
had/VBD
achieved/VBN
that/DT
level/NN
of/IN
sales/NNS
faster/RBR
than/IN
any/DT
previous/JJ
manufacturing/NN
start-up/NNS
./.
Conner/NNP
's/POS
performance/NN
is/VBZ
closely/RB
tied/VBN
to/TO
the/DT
burgeoning/VBG
demand/NN
for/IN
battery-operated/JJ
computers/NNS
,/,
the/DT
computer/NN
industry/NN
's/POS
fastest-growing/JJS
segment/NN
./.
Since/IN
its/PRP$
inception/NN
,/,
Conner/NNP
has/VBZ
both/DT
benefited/VBN
from/IN
and/CC
helped/VBN
make/VB
possible/JJ
the/DT
rapid/JJ
spread/NN
of/IN
portable/JJ
computers/NNS
by/IN
selling/VBG
storage/NN
devices/NNS
that/WDT
consume/VBP
five/CD
to/TO
10/CD
times/NNS
less/JJR
electricity/NN
than/IN
drives/NNS
used/VBN
in/IN
desktop/NN
machines/NNS
./.
Today/NN
,/,
Conner/NNP
controls/VBZ
an/DT
estimated/VBN
90/CD
%/NN
of/IN
the/DT
hard-disk/NN
drive/NN
market/NN
for/IN
laptop/NN
computers/NNS
./.
The/DT
company/NN
supplies/VBZ
drives/NNS
to/TO
Compaq/NNP
and/CC
Zenith/NNP
Data/NNP
Systems/NNPS
,/,
the/DT
top/JJ
two/CD
U.S./NNP
manufacturers/NNS
of/IN
laptops/NNS
,/,
and/CC
to/TO
Toshiba/NNP
Corp./NNP
,/,
NEC/NNP
Corp./NNP
and/CC
Sharp/NNP
Corp./NNP
,/,
the/DT
leading/VBG
Japanese/JJ
laptop/NN
makers/NNS
./.
``/``
They/PRP
've/VBP
had/VBN
this/DT
field/NN
to/TO
themselves/PRP
for/IN
over/IN
a/DT
year/NN
now/RB
,/,
and/CC
they/PRP
've/VBP
been/VBN
greatly/RB
rewarded/VBN
,/,
''/''
said/VBD
Bob/NNP
Katsive/NNP
,/,
an/DT
analyst/NN
at/IN
Disk\/Trend/NNP
Inc./NNP
,/,
a/DT
market/NN
researcher/NN
in/IN
Los/NNP
Altos/NNP
,/,
Calif/NNP
./.
In/IN
the/DT
coming/VBG
months/NNS
,/,
however/RB
,/,
this/DT
is/VBZ
likely/JJ
to/TO
change/VB
./.
Next/JJ
month/NN
,/,
Seagate/NNP
Technology/NNP
,/,
which/WDT
is/VBZ
the/DT
dominant/JJ
supplier/NN
of/IN
hard-disk/NN
drives/NNS
for/IN
personal/JJ
computers/NNS
,/,
plans/VBZ
to/TO
introduce/VB
its/PRP$
first/JJ
family/NN
of/IN
low-power/JJ
drives/NNS
for/IN
battery-operated/JJ
computers/NNS
./.
And/CC
the/DT
Japanese/NNPS
are/VBP
likely/JJ
to/TO
keep/VB
close/RB
on/IN
Conner/NNP
's/POS
heels/NNS
./.
``/``
They/PRP
are/VBP
going/VBG
to/TO
catch/VB
up/RP
,/,
''/''
said/VBD
David/NNP
Claridge/NNP
,/,
an/DT
analyst/NN
with/IN
Hambrecht/NNP
&/CC
Quist/NNP
./.
Both/DT
Toshiba/NNP
and/CC
NEC/NNP
already/RB
produce/VBP
hard-disk/NN
drives/NNS
,/,
and/CC
Sony/NNP
also/RB
is/VBZ
studying/VBG
the/DT
field/NN
,/,
Mr./NNP
Claridge/NNP
said/VBD
./.
But/CC
Conner/NNP
is/VBZ
n't/RB
standing/VBG
still/RB
./.
Yesterday/NN
,/,
the/DT
company/NN
introduced/VBD
four/CD
products/NNS
,/,
three/CD
of/IN
which/WDT
are/VBP
aimed/VBN
at/IN
a/DT
hot/JJ
new/JJ
class/NN
of/IN
computers/NNS
called/VBN
notebooks/NNS
./.
Each/DT
of/IN
the/DT
three/CD
drives/NNS
uses/VBZ
a/DT
mere/JJ
1.5/CD
watts/NNS
of/IN
power/NN
and/CC
one/CD
weighs/VBZ
just/JJ
5.5/CD
ounces/NNS
./.
``/``
Most/JJS
of/IN
our/PRP$
competitors/NNS
are/VBP
announcing/VBG
products/NNS
based/VBN
on/IN
our/PRP$
older/JJR
products/NNS
,/,
''/''
said/VBD
Finis/NNP
Conner/NNP
,/,
chief/JJ
executive/NN
officer/NN
and/CC
founder/NN
of/IN
the/DT
firm/NN
that/WDT
bears/VBZ
his/PRP$
name/NN
./.
``/``
We/PRP
continue/VBP
to/TO
develop/VB
products/NNS
faster/RBR
than/IN
anyone/NN
else/JJ
can/MD
./.
''/''
These/DT
new/JJ
products/NNS
could/MD
account/VB
for/IN
as/RB
much/JJ
as/IN
35/CD
%/NN
of/IN
the/DT
company/NN
's/POS
business/NN
in/IN
1990/CD
,/,
Mr./NNP
Conner/NNP
estimated/VBD
./.
``/``
We/PRP
're/VBP
not/RB
afraid/JJ
of/IN
obsoleting/VBG
some/DT
of/IN
our/PRP$
old/JJ
stuff/NN
to/TO
stay/VB
ahead/RB
of/IN
the/DT
competition/NN
,/,
''/''
he/PRP
said/VBD
./.
Conner/NNP
already/RB
is/VBZ
shipping/VBG
its/PRP$
new/JJ
drives/NNS
./.
Last/JJ
week/NN
,/,
for/IN
instance/NN
,/,
Compaq/NNP
introduced/VBD
its/PRP$
first/JJ
notebook/NN
computer/NN
to/TO
rave/VB
reviews/NNS
./.
Conner/NNP
is/VBZ
supplying/VBG
hard-disk/NN
drives/NNS
for/IN
the/DT
machine/NN
,/,
which/WDT
weighs/VBZ
only/RB
six/CD
pounds/NNS
and/CC
fits/VBZ
in/IN
a/DT
briefcase/NN
./.
From/IN
its/PRP$
inception/NN
,/,
Conner/NNP
has/VBZ
targeted/VBN
the/DT
market/NN
for/IN
battery-operated/JJ
machines/NNS
,/,
building/VBG
hard-disk/NN
drives/NNS
that/WDT
are/VBP
smaller/JJR
and/CC
use/VB
far/RB
less/JJR
power/NN
than/IN
those/DT
offered/VBN
by/IN
competitors/NNS
such/JJ
as/IN
Seagate/NNP
./.
The/DT
availability/NN
of/IN
these/DT
drives/NNS
,/,
in/IN
turn/NN
,/,
boosted/VBD
demand/NN
for/IN
laptop/NN
computers/NNS
,/,
whose/WP$
usefulness/NN
had/VBD
been/VBN
limited/JJ
because/RB
of/IN
lack/NN
of/IN
storage/NN
./.
Conner/NNP
also/RB
makes/VBZ
hard-disk/NN
drives/NNS
for/IN
desktop/NN
computers/NNS
and/CC
is/VBZ
a/DT
major/JJ
supplier/NN
to/TO
Compaq/NNP
,/,
which/WDT
as/IN
of/IN
July/NNP
owned/VBD
40/CD
%/NN
of/IN
Conner/NNP
's/POS
stock/NN
./.
Sales/NNS
to/TO
Compaq/NNP
represented/VBD
26/CD
%/NN
of/IN
Conner/NNP
's/POS
business/NN
in/IN
its/PRP$
third/JJ
quarter/NN
,/,
compared/VBN
with/IN
42/CD
%/NN
in/IN
the/DT
year-ago/JJ
period/NN
./.
Move/VB
over/RB
,/,
pornographic/JJ
phone/NN
services/NNS
:/:
A/DT
legal/JJ
service/NN
with/IN
a/DT
``/``
900/CD
''/''
number/NN
has/VBZ
been/VBN
launched/VBN
in/IN
California/NNP
./.
A/DT
Newport/NNP
Beach/NNP
law/NN
firm/NN
started/VBD
the/DT
pay-as-you-go/JJ
legal/JJ
service/NN
,/,
called/VBN
Telelawyer/NNP
,/,
using/VBG
MCI/NNP
Communication/NNP
Corp./NNP
's/POS
toll-tele-phone/JJ
service/NN
./.
Cane/NNP
&/CC
Associates/NNPS
touts/VBZ
its/PRP$
$/$
2-a-minute/JJ
service/NN
as/IN
the/DT
``/``
cheapest/JJS
legal/JJ
hour/NN
you/PRP
'll/MD
ever/RB
find/VB
./.
''/''
Though/IN
the/DT
service/NN
is/VBZ
available/JJ
only/RB
in/IN
California/NNP
,/,
Telelawyer/NNP
founder/NN
Michael/NNP
Cane/NNP
says/VBZ
he/PRP
plans/VBZ
to/TO
franchise/VB
it/PRP
in/IN
other/JJ
states/NNS
./.
He/PRP
says/VBZ
his/PRP$
aim/NN
is/VBZ
to/TO
reach/VB
people/NNS
who/WP
are/VBP
bedridden/JJ
,/,
have/VB
no/DT
access/NN
to/TO
transportation/NN
,/,
ca/MD
n't/RB
find/VB
a/DT
lawyer/NN
to/TO
take/VB
their/PRP$
case/NN
or/CC
simply/RB
ca/MD
n't/RB
afford/VB
lawyers/NNS
'/POS
consultation/NN
fees/NNS
./.
Mr./NNP
Cane/NNP
stresses/VBZ
that/IN
he/PRP
is/VBZ
n't/RB
using/VBG
the/DT
telephone/NN
to/TO
lure/VB
clients/NNS
to/TO
his/PRP$
doorstep/NN
./.
``/``
We/PRP
will/MD
only/RB
deal/VB
with/IN
clients/NNS
on/IN
the/DT
phone/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
We/PRP
have/VBP
no/DT
in-office/JJ
business/NN
./.
''/''
Telelawyer/NNP
is/VBZ
apparently/RB
the/DT
only/JJ
telephone/NN
service/NN
that/WDT
offers/VBZ
the/DT
telephone/NN
equivalent/NN
of/IN
an/DT
office/NN
visit/NN
./.
Local/JJ
bar/NN
associations/NNS
in/IN
some/DT
states/NNS
have/VBP
numbers/NNS
that/WDT
provide/VBP
free/JJ
tape-recorded/JJ
messages/NNS
explaining/VBG
certain/JJ
areas/NNS
of/IN
the/DT
law/NN
./.
There/EX
also/RB
are/VBP
``/``
800/CD
''/''
hotlines/NNS
which/WDT
refer/VBP
people/NNS
to/TO
lawyers/NNS
,/,
usually/RB
personal-injury/JJ
specialists/NNS
,/,
for/IN
in-office/JJ
consultation/NN
./.
When/WRB
a/DT
caller/NN
reaches/VBZ
Telelawyer/NNP
by/IN
dialing/VBG
900-TELELAW/NN
,/,
a/DT
receptionist/NN
refers/VBZ
the/DT
call/NN
to/TO
one/CD
of/IN
six/CD
attorneys/NNS
./.
In/IN
an/DT
effort/NN
to/TO
determine/VB
whether/IN
a/DT
caller/NN
has/VBZ
reason/NN
to/TO
sue/VB
,/,
Cane/NNP
lawyers/NNS
review/VBP
documents/NNS
and/CC
perform/VBP
research/NN
,/,
if/IN
necessary/JJ
,/,
with/IN
the/DT
help/NN
of/IN
three/CD
law/NN
clerks/NNS
and/CC
several/JJ
support/NN
staffers/NNS
./.
There/EX
is/VBZ
no/DT
charge/NN
for/IN
research/NN
--/:
only/RB
for/IN
time/NN
on/IN
the/DT
phone/NN
./.
If/IN
the/DT
matter/NN
requires/VBZ
further/JJ
legal/JJ
work/NN
or/CC
litigation/NN
,/,
Mr./NNP
Cane/NNP
says/VBZ
,/,
his/PRP$
lawyers/NNS
may/MD
refer/VB
the/DT
client/NN
to/TO
a/DT
law/NN
firm/NN
./.
But/CC
he/PRP
says/VBZ
Cane/NNP
&/CC
Associates/NNP
does/VBZ
n't/RB
receive/VB
referral/NN
fees/NNS
./.
So/RB
far/RB
,/,
says/VBZ
Mr./NNP
Cane/NNP
,/,
most/JJS
calls/NNS
have/VBP
involved/VBN
landlord-tenant/JJ
problems/NNS
,/,
tax/NN
problems/NNS
,/,
divorce/NN
,/,
and/CC
probate/NN
questions/NNS
./.
The/DT
firm/NN
is/VBZ
getting/VBG
about/IN
50/CD
calls/NNS
a/DT
day/NN
,/,
and/CC
the/DT
average/JJ
call/NN
lasts/VBZ
about/IN
15/CD
minutes/NNS
./.
Out/IN
of/IN
the/DT
$/$
2/CD
charge/NN
,/,
the/DT
law/NN
firm/NN
pockets/VBZ
about/IN
$/$
1.55/CD
./.
JURY/NN
CONVICTS/VBZ
congressman/NN
in/IN
connection/NN
with/IN
Wedtech/NNP
Corp./NNP
scandal/NN
./.
A/DT
federal/JJ
court/NN
jury/NN
in/IN
New/NNP
York/NNP
found/VBD
U.S./NNP
Rep./NNP
Robert/NNP
Garcia/NNP
D./NNP
,/,
N.Y/NNP
./.
his/PRP$
wife/NN
,/,
Jane/NNP
Lee/NNP
Garcia/NNP
,/,
guilty/JJ
of/IN
extorting/VBG
$/$
76,000/CD
from/IN
Wedtech/NNP
in/IN
return/NN
for/IN
official/JJ
acts/NNS
by/IN
the/DT
congressman/NN
./.
The/DT
jury/NN
also/RB
convicted/VBD
them/PRP
of/IN
extortion/NN
in/IN
obtaining/VBG
a/DT
$/$
20,000/CD
,/,
interest-free/JJ
loan/NN
from/IN
a/DT
Wedtech/NNP
officer/NN
./.
The/DT
jury/NN
found/VBD
them/PRP
guilty/JJ
of/IN
conspiracy/NN
in/IN
obtaining/VBG
the/DT
payments/NNS
,/,
some/DT
of/IN
which/WDT
were/VBD
disguised/VBN
as/IN
fees/NNS
for/IN
consulting/NN
services/NNS
from/IN
Mrs./NNP
Garcia/NNP
./.
Wedtech/NNP
,/,
which/WDT
became/VBD
embroiled/VBN
in/IN
political-corruption/NN
cases/NNS
that/WDT
eventually/RB
led/VBD
to/TO
its/PRP$
demise/NN
,/,
formerly/RB
was/VBD
a/DT
minority-owned/JJ
South/NNP
Bronx/NNP
,/,
N.Y./NNP
,/,
defense/NN
contractor/NN
./.
Edward/NNP
J.M./NNP
Little/NNP
,/,
one/CD
of/IN
the/DT
assistant/JJ
U.S./NNP
attorneys/NNS
who/WP
prosecuted/VBD
the/DT
case/NN
,/,
said/VBD
the/DT
Garcia/NNP
trial/NN
``/``
is/VBZ
the/DT
last/JJ
of/IN
the/DT
Wedtech/NNP
prosecutions/NNS
./.
''/''
Mr./NNP
Little/NNP
said/VBD
more/JJR
than/IN
20/CD
people/NNS
have/VBP
been/VBN
convicted/VBN
in/IN
the/DT
Wedtech/NNP
cases/NNS
,/,
including/VBG
former/JJ
U.S./NNP
Rep./NNP
Mario/NNP
Biaggi/NNP
D./NNP
,/,
N.Y/NNP
./.
Lawyers/NNS
for/IN
the/DT
Garcias/NNPS
said/VBD
they/PRP
plan/VBP
to/TO
appeal/VB
./.
Mr./NNP
Garcia/NNP
,/,
who/WP
represents/VBZ
New/NNP
York/NNP
's/POS
18th/JJ
congressional/JJ
district/NN
,/,
which/WDT
includes/VBZ
the/DT
Bronx/NNP
,/,
said/VBD
he/PRP
has/VBZ
n't/RB
decided/VBN
whether/IN
he/PRP
will/MD
resign/VB
./.
``/``
In/IN
the/DT
next/JJ
few/JJ
weeks/NNS
,/,
I/PRP
will/MD
be/VB
consulting/VBG
with/IN
my/PRP$
political/JJ
advisers/NNS
and/CC
with/IN
the/DT
Democratic/JJ
leaders/NNS
about/IN
the/DT
best/JJS
way/NN
of/IN
preserving/VBG
the/DT
interests/NNS
of/IN
my/PRP$
constituents/NNS
,/,
''/''
said/VBD
Mr./NNP
Garcia/NNP
,/,
56/CD
years/NNS
old/JJ
./.
Mrs./NNP
Garcia/NNP
,/,
49/CD
,/,
formerly/RB
was/VBD
a/DT
member/NN
of/IN
Mr./NNP
Garcia/NNP
's/POS
congressional/JJ
staff/NN
./.
The/DT
Garcias/NNPS
were/VBD
cleared/VBN
of/IN
four/CD
other/JJ
felony/NN
counts/NNS
,/,
involving/VBG
the/DT
receipt/NN
of/IN
bribes/NNS
and/CC
gratuities/NNS
./.
U.S./NNP
Judge/NNP
Leonard/NNP
B./NNP
Sand/NNP
set/VBD
the/DT
Garcias/NNPS
'/POS
sentencing/NN
for/IN
Jan./NNP
5/CD
./.
FIVE/CD
SHEA/NNP
&/CC
GOULD/NNP
PARTNERS/NNS
are/VBP
leaving/VBG
to/TO
form/VB
a/DT
new/JJ
firm/NN
./.
The/DT
new/JJ
firm/NN
,/,
Hutton/NNP
Ingram/NNP
Yuzek/NNP
Gainen/NNP
Carroll/NNP
&/CC
Bertolotti/NNP
,/,
will/MD
be/VB
based/VBN
in/IN
New/NNP
York/NNP
./.
The/DT
five/CD
partners/NNS
who/WP
resigned/VBD
from/IN
Shea/NNP
&/CC
Gould/NNP
late/JJ
last/JJ
week/NN
are/VBP
Tom/NNP
Hutton/NNP
,/,
Sam/NNP
Ingram/NNP
,/,
Dean/NNP
Yuzek/NNP
,/,
Daniel/NNP
Carroll/NNP
and/CC
Ernest/NNP
Bertolotti/NNP
./.
They/PRP
will/MD
be/VB
joined/VBN
by/IN
Larry/NNP
Gainen/NNP
,/,
who/WP
resigned/VBD
from/IN
the/DT
firm/NN
of/IN
LePatner/NNP
,/,
Gainen/NNP
&/CC
Block/NNP
./.
Howard/NNP
Rubenstein/NNP
,/,
a/DT
New/NNP
York/NNP
publicist/NN
who/WP
represents/VBZ
Shea/NNP
&/CC
Gould/NNP
,/,
said/VBD
,/,
``/``
Shea/NNP
&/CC
Gould/NNP
understands/VBZ
they/PRP
're/VBP
leaving/VBG
because/IN
they/PRP
wanted/VBD
a/DT
different/JJ
environment/NN
--/:
a/DT
smaller/JJR
firm/NN
they/PRP
would/MD
be/VB
principals/NNS
of/IN
./.
''/''
Mr./NNP
Rubenstein/NNP
said/VBD
the/DT
five/CD
,/,
who/WP
were/VBD
n't/RB
on/IN
Shea/NNP
&/CC
Gould/NNP
's/POS
management/NN
committee/NN
,/,
``/``
are/VBP
leaving/VBG
on/IN
good/JJ
terms/NNS
./.
''/''
He/PRP
said/VBD
Shea/NNP
&/CC
Gould/NNP
held/VBD
a/DT
number/NN
of/IN
discussions/NNS
with/IN
the/DT
five/CD
partners/NNS
during/IN
the/DT
past/JJ
few/JJ
weeks/NNS
to/TO
get/VB
them/PRP
to/TO
stay/VB
but/CC
that/IN
the/DT
five/CD
were/VBD
firmly/RB
committed/JJ
to/TO
running/VBG
their/PRP$
own/JJ
firm/NN
./.
Hutton/NNP
Ingram/NNP
will/MD
have/VB
a/DT
general/JJ
corporate/JJ
,/,
securities/NNS
,/,
real-estate/NN
and/CC
litigation/NN
practice/NN
,/,
and/CC
a/DT
substantial/JJ
practice/NN
serving/VBG
the/DT
professional-design/JJ
community/NN
./.
DISCIPLINARY/NN
PROCEEDINGS/NNS
against/IN
lawyers/NNS
open/JJ
to/TO
public/NN
in/IN
Illinois/NNP
./.
While/IN
investigations/NNS
into/IN
lawyer/NN
misconduct/NN
will/MD
remain/VB
secret/JJ
,/,
the/DT
public/NN
will/MD
be/VB
notified/VBN
once/RB
a/DT
formal/JJ
complaint/NN
is/VBZ
filed/VBN
against/IN
an/DT
attorney/NN
./.
The/DT
actual/JJ
disciplinary/JJ
hearings/NNS
will/MD
be/VB
public/JJ
./.
In/IN
addition/NN
,/,
Illinois/NNP
attorneys/NNS
will/MD
lose/VB
the/DT
right/NN
to/TO
sue/VB
clients/NNS
who/WP
file/VBP
malicious/JJ
complaints/NNS
against/IN
them/PRP
./.
Non-lawyers/NNS
will/MD
be/VB
added/VBN
to/TO
the/DT
inquiry/NN
panels/NNS
that/WDT
look/VBP
into/IN
allegations/NNS
of/IN
misconduct/NN
./.
Illinois/NNP
joins/VBZ
36/CD
other/JJ
states/NNS
that/WDT
allow/VBP
public/JJ
participation/NN
in/IN
attorney-disciplinary/JJ
proceedings/NNS
and/CC
32/CD
states/NNS
that/WDT
open/VBP
disciplinary/JJ
hearings/NNS
to/TO
the/DT
public/NN
,/,
according/VBG
to/TO
the/DT
American/NNP
Bar/NNP
Association/NNP
./.
One/CD
vocal/JJ
critic/NN
of/IN
the/DT
changes/NNS
,/,
Chicago/NNP
lawyer/NN
Warren/NNP
Lupel/NNP
,/,
says/VBZ
non-lawyers/NNS
should/MD
n't/RB
be/VB
on/IN
the/DT
inquiry/NN
panels/NNS
because/IN
they/PRP
are/VBP
unlikely/JJ
to/TO
appreciate/VB
the/DT
nuances/NNS
of/IN
attorney-client/JJ
relationships/NNS
./.
In/IN
addition/NN
,/,
he/PRP
says/VBZ
,/,
publishing/VBG
the/DT
names/NNS
of/IN
lawyers/NNS
who/WP
are/VBP
facing/VBG
charges/NNS
unnecessarily/RB
subjects/VBZ
them/PRP
to/TO
public/JJ
derogation/NN
./.
Nevertheless/RB
,/,
Mr./NNP
Lupel/NNP
anticipates/VBZ
no/DT
legal/JJ
action/NN
to/TO
reverse/VB
the/DT
Illinois/NNP
Supreme/NNP
Court/NNP
's/POS
decision/NN
to/TO
institute/VB
the/DT
changes/NNS
./.
``/``
There/EX
's/VBZ
no/DT
constitutional/JJ
right/NN
involved/VBN
in/IN
the/DT
rule/NN
change/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
You/PRP
do/VBP
n't/RB
have/VB
a/DT
right/NN
to/TO
practice/VB
./.
You/PRP
only/RB
have/VBP
a/DT
privilege/NN
to/TO
practice/VB
./.
''/''
DREXEL/NNP
BURNHAM/NNP
LAMBERT/NNP
Inc./NNP
agreed/VBD
to/TO
pay/VB
a/DT
$/$
50,000/CD
fine/NN
to/TO
Delaware/NNP
,/,
the/DT
26th/JJ
state/NN
to/TO
settle/VB
with/IN
Drexel/NNP
in/IN
the/DT
wake/NN
of/IN
the/DT
firm/NN
's/POS
guilty/JJ
plea/NN
to/TO
federal/JJ
insider-trading/NN
charges/NNS
./.
Drexel/NNP
does/VBZ
n't/RB
have/VB
a/DT
Delaware/NNP
office/NN
,/,
but/CC
the/DT
New/NNP
York/NNP
firm/NN
has/VBZ
been/VBN
negotiating/VBG
settlements/NNS
that/WDT
would/MD
allow/VB
it/PRP
to/TO
operate/VB
freely/RB
nationwide/RB
despite/IN
its/PRP$
record/NN
as/IN
an/DT
admitted/VBN
felon/NN
./.
The/DT
firm/NN
has/VBZ
said/VBN
it/PRP
expects/VBZ
to/TO
pay/VB
$/$
11.5/CD
million/CD
overall/NN
to/TO
settle/VB
with/IN
states/NNS
./.
Drexel/NNP
pleaded/VBD
guilty/JJ
in/IN
September/NNP
to/TO
six/CD
felony/NN
counts/NNS
of/IN
securities/NNS
and/CC
mail/NN
fraud/NN
;/:
it/PRP
also/RB
made/VBD
a/DT
$/$
650/CD
million/CD
civil/JJ
settlement/NN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
./.
Philip/NNP
Morris/NNP
Cos./NNP
,/,
whose/WP$
Benson/NNP
&/CC
Hedges/NNP
cigarette/NN
brand/NN
has/VBZ
been/VBN
losing/VBG
market/NN
share/NN
,/,
has/VBZ
asked/VBN
at/IN
least/JJS
one/CD
other/JJ
agency/NN
to/TO
try/VB
its/PRP$
hand/NN
at/IN
creative/JJ
work/NN
for/IN
the/DT
big/JJ
account/NN
,/,
which/WDT
has/VBZ
been/VBN
at/IN
Wells/NNP
Rich/NNP
Greene/NNP
Inc./NNP
since/IN
1966/CD
./.
Executives/NNS
close/JJ
to/TO
Philip/NNP
Morris/NNP
said/VBD
that/IN
the/DT
tobacco/NN
and/CC
food/NN
giant/NN
has/VBZ
asked/VBN
Backer/NNP
Spielvogel/NNP
Bates/NNP
Worldwide/NNP
Inc./NNP
,/,
a/DT
unit/NN
of/IN
Saatchi/NNP
&/CC
Saatchi/NNP
Co./NNP
,/,
and/CC
possibly/RB
others/NNS
to/TO
work/VB
on/IN
creative/JJ
ideas/NNS
for/IN
the/DT
account/NN
./.
Several/JJ
executives/NNS
said/VBD
another/DT
potential/JJ
contender/NN
is/VBZ
WPP/NNP
Group/NNP
's/POS
Ogilvy/NNP
&/CC
Mather/NNP
agency/NN
,/,
which/WDT
works/VBZ
on/IN
some/DT
other/JJ
Philip/NNP
Morris/NNP
products/NNS
./.
Both/DT
Philip/NNP
Morris/NNP
and/CC
Backer/NNP
Spielvogel/NNP
declined/VBD
to/TO
comment/VB
./.
A/DT
spokeswoman/NN
for/IN
Ogilvy/NNP
&/CC
Mather/NNP
said/VBD
the/DT
agency/NN
does/VBZ
n't/RB
comment/VB
on/IN
``/``
idle/JJ
speculation/NN
./.
''/''
Also/RB
mentioned/VBN
as/IN
a/DT
contender/NN
was/VBD
TBWA/NNP
Advertising/NNP
,/,
but/CC
the/DT
company/NN
denied/VBD
it/PRP
was/VBD
participating/VBG
./.
The/DT
loss/NN
of/IN
the/DT
cigarette/NN
account/NN
would/MD
be/VB
a/DT
severe/JJ
blow/NN
to/TO
Wells/NNP
Rich/NNP
./.
Benson/NNP
&/CC
Hedges/NNP
has/VBZ
been/VBN
one/CD
of/IN
its/PRP$
most/RBS
high-visibility/JJ
campaigns/NNS
,/,
as/RB
well/RB
as/IN
one/CD
of/IN
its/PRP$
largest/JJS
clients/NNS
./.
The/DT
account/NN
billed/VBD
almost/RB
$/$
60/CD
million/CD
last/JJ
year/NN
,/,
according/VBG
to/TO
Leading/VBG
National/NNP
Advertisers/NNPS
./.
But/CC
Philip/NNP
Morris/NNP
has/VBZ
scaled/VBN
back/RB
ad/NN
spending/NN
on/IN
the/DT
brand/NN
over/IN
the/DT
past/JJ
year/NN
,/,
industry/NN
executives/NNS
said/VBD
,/,
and/CC
it/PRP
now/RB
bills/VBZ
about/IN
$/$
30/CD
million/CD
to/TO
$/$
40/CD
million/CD
./.
Industry/NN
executives/NNS
said/VBD
Philip/NNP
Morris/NNP
had/VBD
asked/VBN
the/DT
other/JJ
agencies/NNS
to/TO
create/VB
campaigns/NNS
in/IN
a/DT
bid/NN
to/TO
stop/VB
the/DT
brand/NN
's/POS
slipping/VBG
market/NN
share/NN
./.
According/VBG
to/TO
John/NNP
Maxwell/NNP
,/,
an/DT
analyst/NN
at/IN
Wheat/NNP
First/JJ
Securities/NNPS
,/,
Richmond/NNP
,/,
Va./NNP
,/,
Benson/NNP
&/CC
Hedges/NNP
has/VBZ
slipped/VBN
from/IN
4.7/CD
%/NN
of/IN
the/DT
cigarette/NN
market/NN
in/IN
1985/CD
to/TO
just/RB
4.1/CD
%/NN
after/IN
the/DT
second/JJ
quarter/NN
of/IN
this/DT
year/NN
./.
The/DT
brand/NN
is/VBZ
No./NN
7/CD
overall/NN
in/IN
the/DT
cigarette/NN
business/NN
,/,
Mr./NNP
Maxwell/NNP
said/VBD
./.
The/DT
slip/NN
has/VBZ
come/VBN
despite/IN
high-profile/JJ
ads/NNS
created/VBN
by/IN
Wells/NNP
Rich/NNP
,/,
including/VBG
one/NN
picturing/VBG
a/DT
young/JJ
man/NN
clad/VBN
only/RB
in/IN
pajama/NN
bottoms/NNS
interrupting/VBG
a/DT
festive/JJ
brunch/NN
./.
That/DT
ad/NN
generated/VBD
so/RB
much/JJ
publicity/NN
that/IN
a/DT
trade/NN
magazine/NN
launched/VBD
a/DT
contest/NN
for/IN
its/PRP$
readers/NNS
to/TO
guess/VB
who/WP
the/DT
guy/NN
was/VBD
and/CC
what/WP
he/PRP
was/VBD
doing/VBG
./.
Wells/NNP
Rich/NNP
first/RB
popularized/VBD
the/DT
Benson/NNP
&/CC
Hedges/NNP
brand/NN
more/JJR
than/IN
20/CD
years/NNS
ago/RB
with/IN
ads/NNS
portraying/VBG
,/,
among/IN
other/JJ
things/NNS
,/,
an/DT
elevator/NN
door/NN
closing/VBG
on/IN
a/DT
passenger/NN
's/POS
cigarette/NN
./.
The/DT
brand/NN
early/RB
on/RB
achieved/VBD
an/DT
upscale/JJ
appeal/NN
--/:
a/DT
trait/NN
that/IN
some/DT
analysts/NNS
believe/VBP
is/VBZ
partly/RB
responsible/JJ
for/IN
its/PRP$
staid/JJ
performance/NN
./.
Philip/NNP
Morris/NNP
,/,
trying/VBG
to/TO
revive/VB
the/DT
Benson/NNP
&/CC
Hedges/NNP
franchise/NN
,/,
put/VBD
the/DT
account/NN
up/RP
for/IN
review/NN
in/IN
1986/CD
./.
Wells/NNP
Rich/NNP
Greene/NNP
,/,
however/RB
,/,
in/IN
an/DT
effort/NN
directed/VBN
by/IN
Mary/NNP
Wells/NNP
Lawrence/NNP
,/,
emerged/VBD
the/DT
victor/NN
of/IN
the/DT
review/NN
and/CC
retained/VBD
the/DT
business/NN
./.
Kenneth/NNP
Olshan/NNP
,/,
Wells/NNP
Rich/NNP
's/POS
chairman/NN
,/,
did/VBD
n't/RB
return/VB
phone/NN
calls/NNS
seeking/VBG
comment/NN
./.
While/IN
Wells/NNP
Rich/NNP
recently/RB
picked/VBD
up/RP
Hertz/NNP
Corp./NNP
's/POS
$/$
25/CD
million/CD
to/TO
$/$
30/CD
million/CD
account/NN
,/,
it/PRP
has/VBZ
lost/VBN
a/DT
number/NN
of/IN
big/JJ
accounts/NNS
this/DT
year/NN
,/,
including/VBG
the/DT
$/$
20/CD
million/CD
to/TO
$/$
25/CD
million/CD
Cadbury-Schweppes/NNP
Canada/NNP
Dry/NNP
and/CC
Sunkist/NNP
accounts/NNS
,/,
the/DT
$/$
18/CD
million/CD
Procter/NNP
&/CC
Gamble/NNP
Co/NNP
./.
Sure/NNP
deodorant/NN
account/NN
and/CC
the/DT
$/$
10/CD
million/CD
Polo\/Ralph/NNP
Lauren/NNP
business/NN
./.
Its/PRP$
victories/NNS
include/VBP
more/JJR
than/IN
$/$
30/CD
million/CD
in/IN
Sheraton/NNP
Corp./NNP
business/NN
and/CC
an/DT
assignment/NN
from/IN
Dun/NNP
&/CC
Bradstreet/NNP
worth/JJ
$/$
5/CD
million/CD
to/TO
$/$
10/CD
million/CD
./.
This/DT
city/NN
is/VBZ
girding/VBG
for/IN
gridlock/NN
today/NN
as/IN
hundreds/NNS
of/IN
thousands/NNS
of/IN
commuters/NNS
avoid/VBP
travel/NN
routes/NNS
ravaged/VBN
by/IN
last/JJ
week/NN
's/POS
earthquake/NN
./.
Estimates/NNS
of/IN
damage/NN
in/IN
the/DT
six-county/JJ
San/NNP
Francisco/NNP
Bay/NNP
area/NN
neared/VBD
$/$
5/CD
billion/CD
,/,
excluding/VBG
the/DT
cost/NN
of/IN
repairing/VBG
the/DT
region/NN
's/POS
transportation/NN
system/NN
./.
The/DT
Bay/NNP
Bridge/NNP
,/,
the/DT
main/JJ
artery/NN
into/IN
San/NNP
Francisco/NNP
from/IN
the/DT
east/JJ
,/,
will/MD
be/VB
closed/VBN
for/IN
at/IN
least/JJS
several/JJ
weeks/NNS
./.
Part/NN
of/IN
the/DT
bridge/NN
collapsed/VBD
in/IN
the/DT
quake/NN
,/,
which/WDT
registered/VBD
6.9/CD
on/IN
the/DT
Richter/NNP
scale/NN
./.
The/DT
bridge/NN
normally/RB
carries/VBZ
250,000/CD
commuters/NNS
a/DT
day/NN
./.
Also/RB
,/,
most/RBS
of/IN
the/DT
ramps/NNS
connecting/VBG
the/DT
city/NN
to/TO
its/PRP$
main/JJ
link/NN
to/TO
the/DT
south/NN
,/,
the/DT
101/CD
freeway/NN
,/,
have/VBP
been/VBN
closed/VBN
for/IN
repairs/NNS
./.
The/DT
Bay/NNP
Area/NNP
Rapid/NNP
Transit/NNP
system/NN
,/,
which/WDT
runs/VBZ
subway/NN
trains/NNS
beneath/IN
the/DT
bay/NN
,/,
is/VBZ
braced/VBN
for/IN
a/DT
doubling/NN
of/IN
its/PRP$
daily/JJ
regular/JJ
ridership/NN
to/TO
300,000/CD
./.
BART/NNP
has/VBZ
increased/VBN
service/NN
to/TO
24/CD
hours/NNS
a/DT
day/NN
in/IN
preparation/NN
for/IN
the/DT
onslaught/NN
./.
Most/RBS
unusual/JJ
will/MD
be/VB
water-borne/JJ
commuters/NNS
from/IN
the/DT
East/NNP
Bay/NNP
towns/NNS
of/IN
Oakland/NNP
and/CC
Berkeley/NNP
./.
For/IN
the/DT
first/JJ
time/NN
in/IN
32/CD
years/NNS
,/,
ferry/NN
service/NN
has/VBZ
been/VBN
restored/VBN
between/IN
the/DT
East/NNP
Bay/NNP
and/CC
San/NNP
Francisco/NNP
./.
The/DT
Red/NNP
and/CC
White/NNP
Fleet/NNP
,/,
which/WDT
operates/VBZ
regular/JJ
commuter/NN
ferry/NN
service/NN
to/TO
and/CC
from/IN
Marin/NNP
County/NNP
,/,
and/CC
tourist/NN
tours/NNS
of/IN
the/DT
bay/NN
,/,
is/VBZ
offering/VBG
East/NNP
Bay/NNP
commuters/NNS
a/DT
chance/NN
to/TO
ride/VB
the/DT
waves/NNS
for/IN
the/DT
price/NN
of/IN
$/$
10/CD
round-trip/NN
./.
That/DT
tariff/NN
is/VBZ
too/RB
stiff/JJ
for/IN
some/DT
Financial/NNP
District/NNP
wage/NN
earners/NNS
./.
``/``
I/PRP
'll/MD
stay/VB
with/IN
BART/NNP
,/,
''/''
said/VBD
one/CD
secretary/NN
,/,
swallowing/VBG
her/PRP$
fears/NNS
about/IN
using/VBG
the/DT
transbay/JJ
tube/NN
./.
Officials/NNS
expect/VBP
the/DT
Golden/NNP
Gate/NNP
Bridge/NNP
to/TO
be/VB
swamped/VBN
with/IN
an/DT
extra/JJ
load/NN
of/IN
commuters/NNS
,/,
including/VBG
East/NNP
Bay/NNP
residents/NNS
making/VBG
a/DT
long/JJ
detour/NN
./.
``/``
We/PRP
're/VBP
anticipating/VBG
quite/RB
a/DT
traffic/NN
crunch/NN
,/,
''/''
said/VBD
one/CD
official/NN
./.
About/IN
23,000/CD
people/NNS
typically/RB
travel/VBP
over/IN
the/DT
Golden/NNP
Gate/NNP
Bridge/NNP
during/IN
commute/NN
hours/NNS
./.
About/IN
130,000/CD
vehicles/NNS
cross/VBP
during/IN
a/DT
24-hour/JJ
period/NN
./.
Meetings/NNS
canceled/VBN
by/IN
Apple/NNP
Computer/NNP
Inc./NNP
's/POS
European/JJ
sales/NNS
force/NN
and/CC
by/IN
other/JJ
groups/NNS
raised/VBD
the/DT
specter/NN
of/IN
empty/JJ
hotel/NN
rooms/NNS
and/CC
restaurants/NNS
./.
It/PRP
also/RB
raised/VBD
hackles/NNS
of/IN
the/DT
city/NN
's/POS
tourism/NN
boosters/NNS
./.
``/``
Other/JJ
cities/NNS
are/VBP
calling/VBG
{/(
groups/NNS
booked/VBN
here/RB
for/IN
tours/NNS
and/CC
conferences/NNS
our/PRP$
booking/NN
list/NN
,/,
''/''
said/VBD
Scott/NNP
Shafer/NNP
,/,
a/DT
spokesman/NN
for/IN
Mayor/NNP
Art/NNP
Agnos/NNP
./.
City/NN
officials/NNS
stuck/VBN
by/IN
their/PRP$
estimate/NN
of/IN
$/$
2/CD
billion/CD
in/IN
damage/NN
to/TO
the/DT
quake-shocked/JJ
city/NN
./.
The/DT
other/JJ
five/CD
Bay/NNP
area/NN
counties/NNS
have/VBP
increased/VBN
their/PRP$
total/JJ
damage/NN
estimates/NNS
to/TO
$/$
2.8/CD
billion/CD
./.
All/DT
estimates/NNS
exclude/VBP
highway/NN
repair/NN
,/,
which/WDT
could/MD
exceed/VB
$/$
1/CD
billion/CD
./.
Among/IN
the/DT
expensive/JJ
unknowns/NNS
are/VBP
stretches/NNS
of/IN
elevated/JJ
freeway/NN
in/IN
San/NNP
Francisco/NNP
that/WDT
were/VBD
closed/VBN
because/IN
of/IN
quake-inflicted/JJ
damage/NN
./.
The/DT
most/RBS
worrisome/JJ
stretch/NN
is/VBZ
1.2/CD
miles/NNS
of/IN
waterfront/NN
highway/NN
known/VBN
as/IN
the/DT
Embarcadero/NNP
Freeway/NNP
./.
Until/IN
it/PRP
was/VBD
closed/VBN
Tuesday/NNP
,/,
it/PRP
had/VBD
provided/VBN
the/DT
quickest/JJS
series/NN
of/IN
exits/NNS
for/IN
commuters/NNS
from/IN
the/DT
Bay/NNP
Bridge/NNP
heading/VBG
into/IN
the/DT
Financial/NNP
District/NNP
./.
Engineers/NNS
say/VBP
it/PRP
will/MD
take/VB
at/IN
least/JJS
eight/CD
months/NNS
to/TO
repair/VB
the/DT
Embarcadero/NNP
structure/NN
./.
As/IN
part/NN
of/IN
the/DT
quake/NN
recovery/NN
effort/NN
,/,
the/DT
city/NN
Building/NNP
Department/NNP
has/VBZ
surveyed/VBN
about/IN
3,000/CD
buildings/NNS
,/,
including/VBG
all/DT
of/IN
the/DT
Financial/NNP
District/NNP
's/POS
high-rises/NNS
./.
The/DT
preliminary/JJ
conclusion/NN
from/IN
a/DT
survey/NN
of/IN
200/CD
downtown/NN
high-rises/NNS
is/VBZ
that/IN
``/``
we/PRP
were/VBD
incredibly/RB
lucky/JJ
,/,
''/''
said/VBD
Lawrence/NNP
Kornfield/NNP
,/,
San/NNP
Francisco/NNP
's/POS
chief/JJ
building/NN
inspector/NN
./.
While/IN
many/JJ
of/IN
these/DT
buildings/NNS
sustained/VBD
heavy/JJ
damage/NN
,/,
little/JJ
of/IN
that/DT
involved/VBN
major/JJ
structural/JJ
damage/NN
./.
City/NN
building/NN
codes/NNS
require/VBP
construction/NN
that/WDT
can/MD
resist/VB
temblors/NNS
./.
In/IN
England/NNP
,/,
Martin/NNP
Leach/NNP
,/,
a/DT
spokesman/NN
for/IN
Lloyd/NN
's/POS
of/IN
London/NNP
,/,
said/VBD
the/DT
insurance/NN
market/NN
has/VBZ
n't/RB
yet/RB
been/VBN
able/JJ
to/TO
estimate/VB
the/DT
total/JJ
potential/JJ
claims/NNS
from/IN
the/DT
disaster/NN
./.
``/``
The/DT
extent/NN
of/IN
the/DT
claims/NNS
wo/MD
n't/RB
be/VB
known/VBN
for/IN
some/DT
time/NN
,/,
''/''
Mr./NNP
Leach/NNP
said/VBD
./.
On/IN
Friday/NNP
,/,
during/IN
a/DT
visit/NN
to/TO
California/NNP
to/TO
survey/VB
quake/NN
damage/NN
,/,
President/NNP
Bush/NNP
promised/VBD
to/TO
``/``
meet/VB
the/DT
federal/JJ
government/NN
's/POS
obligation/NN
''/''
to/TO
assist/VB
relief/NN
efforts/NNS
./.
California/NNP
officials/NNS
plan/VBP
to/TO

ask/VB
Congress/NNP
for/IN
$/$
3/CD
billion/CD
or/CC
more/JJR
of/IN
federal/JJ
aid/NN
,/,
in/IN
the/DT
form/NN
of/IN
grants/NNS
and/CC
low-interest/JJ
loans/NNS
./.
The/DT
state/NN
has/VBZ
a/DT
$/$
1/CD
billion/CD
reserve/NN
,/,
and/CC
is/VBZ
expected/VBN
to/TO
add/VB
$/$
1/CD
billion/CD
to/TO
that/DT
fund/NN
in/IN
the/DT
next/JJ
year/NN
./.
Some/DT
of/IN
that/DT
money/NN
will/MD
be/VB
available/JJ
for/IN
highway/NN
repair/NN
and/CC
special/JJ
emergency/NN
aid/NN
,/,
but/CC
members/NNS
of/IN
the/DT
legislature/NN
are/VBP
also/RB
mulling/VBG
over/IN
a/DT
temporary/JJ
state/NN
gasoline/NN
tax/NN
to/TO
raise/VB
money/NN
for/IN
earthquake/NN
relief/NN
./.
However/RB
,/,
state/NN
initiatives/NNS
restrict/VBP
the/DT
ability/NN
of/IN
the/DT
legislature/NN
to/TO
raise/VB
such/JJ
taxes/NNS
unless/IN
the/DT
voters/NNS
approve/VBP
in/IN
a/DT
statewide/JJ
referendum/NN
./.
G./NNP
Christian/NNP
Hill/NNP
and/CC
Ken/NNP
Wells/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Bond/NNP
Corp/NNP
./.
Holdings/NNPS
Ltd./NNP
posted/VBD
a/DT
loss/NN
for/IN
fiscal/JJ
1989/CD
of/IN
980.2/CD
million/CD
Australian/JJ
dollars/NNS
US$/$
762.4/CD
million/CD
the/DT
largest/JJS
in/IN
Australian/JJ
corporate/JJ
history/NN
./.
That/DT
loss/NN
compared/VBN
with/IN
a/DT
year-earlier/JJ
profit/NN
of/IN
A$/$
273.5/CD
million/CD
./.
In/IN
preliminary/JJ
,/,
unaudited/JJ
results/NNS
reported/VBN
Friday/NNP
,/,
Bond/NNP
Corp./NNP
also/RB
posted/VBD
an/DT
operating/NN
loss/NN
of/IN
A$/$
814.1/CD
million/CD
for/IN
the/DT
year/NN
ended/VBN
June/NNP
30/CD
,/,
compared/VBN
with/IN
operating/NN
profit/NN
of/IN
A$/$
354.7/CD
million/CD
a/DT
year/NN
earlier/RB
./.
Operating/NN
revenue/NN
rose/VBD
69/CD
%/NN
to/TO
A$/$
8.48/CD
billion/CD
from/IN
A$/$
5.01/CD
billion/CD
./.
But/CC
the/DT
net/JJ
interest/NN
bill/NN
jumped/VBD
85/CD
%/NN
to/TO
A$/$
686.7/CD
million/CD
from/IN
A$/$
371.1/CD
million/CD
./.
Bond/NNP
Corp./NNP
has/VBZ
interests/NNS
in/IN
brewing/NN
,/,
media/NNS
and/CC
communications/NNS
,/,
natural/JJ
resources/NNS
and/CC
property/NN
./.
Much/JJ
of/IN
Bond/NNP
Corp./NNP
's/POS
losses/NNS
stemmed/VBD
from/IN
one-time/JJ
write-downs/NNS
of/IN
the/DT
value/NN
of/IN
some/DT
of/IN
Bond/NNP
Corp./NNP
's/POS
assets/NNS
and/CC
those/DT
of/IN
its/PRP$
units/NNS
./.
The/DT
results/NNS
included/VBD
a/DT
A$/$
453.4/CD
million/CD
write-off/NN
of/IN
future/JJ
income-tax/NN
benefits/NNS
and/CC
a/DT
provision/NN
for/IN
a/DT
loss/NN
of/IN
A$/$
149.5/CD
million/CD
on/IN
the/DT
sale/NN
of/IN
a/DT
stake/NN
of/IN
about/IN
20/CD
%/NN
in/IN
Lonrho/NNP
PLC/NNP
./.
However/RB
,/,
Bond/NNP
Corp./NNP
said/VBD
the/DT
tax/NN
benefits/NNS
remain/VBP
available/JJ
and/CC
might/MD
be/VB
used/VBN
later/RBR
./.
Earnings/NNS
before/IN
interest/NN
and/CC
tax/NN
from/IN
brewing/NN
dived/VBD
50/CD
%/NN
to/TO
A$/$
123.8/CD
million/CD
from/IN
A$/$
247.3/CD
million/CD
./.
The/DT
company/NN
said/VBD
the/DT
general/JJ
financial/JJ
performance/NN
of/IN
its/PRP$
U.S./NNP
brewing/NN
operations/NNS
,/,
G./NNP
Heileman/NNP
Brewing/NNP
Co./NNP
,/,
was/VBD
``/``
disappointing/JJ
,/,
and/CC
this/DT
has/VBZ
been/VBN
reflected/VBN
in/IN
the/DT
results/NNS
./.
''/''
Bond/NNP
Corp./NNP
's/POS
shares/NNS
closed/VBD
Friday/NNP
before/IN
news/NN
of/IN
the/DT
results/NNS
at/IN
28/CD
Australian/JJ
cents/NNS
a/DT
share/NN
,/,
up/RB
one/CD
Australian/JJ
cent/NN
./.
The/DT
staggering/JJ
losses/NNS
cap/VBP
a/DT
tumultuous/JJ
year/NN
for/IN
Alan/NNP
Bond/NNP
and/CC
his/PRP$
flagship/NN
,/,
Bond/NNP
Corp/NNP
./.
Only/RB
a/DT
year/NN
ago/RB
,/,
the/DT
chairman/NN
of/IN
Bond/NNP
Corp./NNP
,/,
who/WP
controls/VBZ
about/IN
58/CD
%/NN
of/IN
the/DT
company/NN
,/,
appeared/VBD
to/TO
be/VB
building/VBG
a/DT
war/NN
chest/NN
to/TO
attack/VB
some/DT
big/JJ
companies/NNS
./.
Now/RB
Bond/NNP
Corp./NNP
has/VBZ
agreed/VBN
to/TO
sell/VB
at/IN
least/JJS
half/PDT
its/PRP$
Australian/JJ
brewing/NN
assets/NNS
./.
It/PRP
has/VBZ
sold/VBN
billions/NNS
of/IN
dollars/NNS
of/IN
other/JJ
assets/NNS
and/CC
has/VBZ
more/JJR
on/IN
the/DT
block/NN
./.
But/CC
in/IN
a/DT
TV/NN
interview/NN
Sunday/NNP
Mr./NNP
Bond/NNP
said/VBD
,/,
``/``
We/PRP
've/VBP
taken/VBN
a/DT
big/JJ
loss/NN
./.
We/PRP
've/VBP
taken/VBN
it/PRP
on/IN
the/DT
chin/NN
./.
But/CC
we/PRP
're/VBP
out/IN
there/RB
and/CC
we/PRP
're/VBP
going/VBG
to/TO
stay/VB
in/IN
business/NN
./.
Bond/NNP
Corp./NNP
signaled/VBD
it/PRP
will/MD
focus/VB
on/IN
building/VBG
its/PRP$
domestic/JJ
and/CC
international/JJ
media/NNS
and/CC
communications/NNS
businesses/NNS
./.
It/PRP
said/VBD
it/PRP
will/MD
look/VB
at/IN
opportunities/NNS
in/IN
brewing/NN
,/,
property/NN
and/CC
energy/NN
resources/NNS
to/TO
the/DT
extent/NN
consistent/JJ
with/IN
the/DT
dominant/JJ
objective/NN
of/IN
manageable/JJ
debt-to-assets/JJ
ratios/NNS
./.
The/DT
result/NN
``/``
will/MD
ultimately/RB
be/VB
a/DT
very/RB
different/JJ
group/NN
in/IN
size/NN
and/CC
structure/NN
,/,
''/''
Bond/NNP
Corp./NNP
directors/NNS
said/VBD
in/IN
a/DT
statement/NN
./.
Some/DT
analysts/NNS
contend/VBP
the/DT
total/JJ
writeoffs/NNS
should/MD
have/VB
been/VBN
much/RB
greater/JJR
,/,
and/CC
Bond/NNP
Corp./NNP
's/POS
auditors/NNS
cited/VBD
a/DT
list/NN
of/IN
several/JJ
assets/NNS
and/CC
deals/VBZ
about/IN
which/WDT
there/EX
is/VBZ
``/``
uncertainty/NN
''/''
regarding/VBG
the/DT
current/JJ
value/NN
and/CC
potential/JJ
impact/NN
on/IN
the/DT
firm/NN
./.
Bond/NNP
Corp./NNP
said/VBD
the/DT
acknowledged/JJ
losses/NNS
mean/VBP
net/JJ
asset/NN
backing/NN
is/VBZ
in/IN
the/DT
red/NN
to/TO
the/DT
tune/NN
of/IN
53/CD
Australian/JJ
cents/NNS
a/DT
share/NN
,/,
vs./FW
positive/JJ
asset/NN
backing/NN
of/IN
A$/$
1.92/CD
a/DT
share/NN
a/DT
year/NN
ago/RB
./.
Still/RB
,/,
the/DT
directors/NNS
said/VBD
,/,
``/``
Having/VBG
fully/RB
considered/VBN
all/DT
aspects/NNS
of/IN
the/DT
company/NN
's/POS
state/NN
of/IN
affairs/NNS
and/CC
future/JJ
cash/NN
flows/NNS
,/,
the/DT
directors/NNS
confirm/VBP
absolutely/RB
that/IN
the/DT
company/NN
is/VBZ
solvent/JJ
./.
''/''
Indeed/RB
,/,
in/IN
a/DT
note/NN
to/TO
the/DT
results/NNS
,/,
directors/NNS
said/VBD
if/IN
the/DT
``/``
true/JJ
worth/NN
''/''
of/IN
some/DT
of/IN
the/DT
group/NN
's/POS
assets/NNS
were/VBD
taken/VBN
into/IN
account/NN
instead/RB
of/IN
using/VBG
book/NN
values/NNS
,/,
the/DT
negative/JJ
net/NN
asset/NN
backing/VBG
a/DT
share/NN
would/MD
turn/VB
into/IN
``/``
a/DT
substantial/JJ
positive/JJ
''/''
one/NN
./.
The/DT
Bakersfield/NNP
Supermarket/NNP
went/VBD
out/IN
of/IN
business/NN
last/JJ
May/NNP
./.
The/DT
reason/NN
was/VBD
not/RB
high/JJ
interest/NN
rates/NNS
or/CC
labor/NN
costs/NNS
./.
Nor/CC
was/VBD
there/RB
a/DT
shortage/NN
of/IN
customers/NNS
in/IN
the/DT
area/NN
,/,
the/DT
residential/JJ
Inwood/NNP
section/NN
of/IN
northern/JJ
Manhattan/NNP
./.
The/DT
business/NN
closed/VBD
when/WRB
the/DT
owner/NN
was/VBD
murdered/VBN
by/IN
robbers/NNS
./.
The/DT
owner/NN
was/VBD
Israel/NNP
Ortiz/NNP
,/,
a/DT
29-year-old/JJ
entrepreneur/NN
and/CC
father/NN
of/IN
two/CD
./.
In/IN
his/PRP$
first/JJ
year/NN
of/IN
operating/VBG
the/DT
store/NN
he/PRP
bought/VBD
for/IN
$/$
220,000/CD
,/,
Mr./NNP
Ortiz/NNP
was/VBD
robbed/VBN
at/IN
least/RBS
twice/RB
at/IN
gunpoint/NN
./.
The/DT
first/JJ
time/NN
he/PRP
was/VBD
shot/VBN
in/IN
the/DT
hand/NN
as/IN
he/PRP
chased/VBD
the/DT
robbers/NNS
outside/RB
./.
The/DT
second/JJ
time/NN
he/PRP
identified/VBD
two/CD
robbers/NNS
,/,
who/WP
were/VBD
arrested/VBN
and/CC
charged/VBN
./.
Two/CD
weeks/NNS
later/RB
--/:
perhaps/RB
in/IN
retaliation/NN
--/:
Mr./NNP
Ortiz/NNP
was/VBD
shot/VBN
three/CD
times/NNS
in/IN
the/DT
back/NN
,/,
during/IN
what/WP
police/NNS
classified/VBD
as/IN
a/DT
third/JJ
robbery/NN
attempt/NN
./.
That/DT
was/VBD
his/PRP$
reward/NN
for/IN
working/VBG
until/IN
11/CD
p.m./RB
seven/CD
days/NNS
a/DT
week/NN
to/TO
cover/VB
his/PRP$
$/$
3,000/CD
a/DT
month/NN
rent/NN
./.
For/IN
providing/VBG
what/WP
his/PRP$
customers/NNS
described/VBD
as/IN
very/RB
personal/JJ
and/CC
helpful/JJ
service/NN
./.
For/IN
creating/VBG
a/DT
focus/NN
for/IN
neighborhood/NN
life/NN
./.
Israel/NNP
Ortiz/NNP
is/VBZ
only/RB
one/CD
of/IN
the/DT
thousands/NNS
of/IN
entrepreneurs/NNS
and/CC
their/PRP$
employees/NNS
who/WP
will/MD
be/VB
injured/VBN
or/CC
killed/VBN
by/IN
crime/NN
this/DT
year/NN
./.
The/DT
U.S./NNP
Bureau/NNP
of/IN
Justice/NNP
Statistics/NNPS
reports/VBZ
that/IN
almost/RB
2/CD
%/NN
of/IN
all/DT
retail-sales/JJ
workers/NNS
suffer/VBP
injuries/NNS
from/IN
crime/NN
each/DT
year/NN
,/,
almost/RB
twice/RB
the/DT
national/JJ
average/NN
and/CC
about/IN
four/CD
times/NNS
the/DT
rate/NN
for/IN
teachers/NNS
,/,
truck/NN
drivers/NNS
,/,
medical/JJ
workers/NNS
and/CC
door-to-door/JJ
salespeople/NN
./.
Only/RB
a/DT
few/JJ
other/JJ
occupations/NNS
have/VBP
higher/RBR
reported/JJ
rates/NNS
of/IN
criminal/JJ
injury/NN
,/,
such/JJ
as/IN
police/NNS
,/,
bartenders/NNS
and/CC
taxi/NN
drivers/NNS
./.
Yet/RB
these/DT
figures/NNS
show/VBP
only/RB
the/DT
most/RBS
visible/JJ
part/NN
of/IN
the/DT
problem/NN
./.
Recent/JJ
data/NNS
from/IN
New/NNP
York/NNP
City/NNP
provide/VBP
more/JJR
of/IN
the/DT
picture/NN
./.
While/IN
by/IN
no/DT
means/NN
the/DT
highest/JJS
crime/NN
community/NN
in/IN
the/DT
country/NN
,/,
New/NNP
York/NNP
is/VBZ
a/DT
prime/JJ
example/NN
of/IN
a/DT
city/NN
where/WRB
crime/NN
strangles/VBZ
small-business/NN
development/NN
./.
A/DT
survey/NN
of/IN
small/JJ
businesses/NNS
there/RB
was/VBD
conducted/VBN
this/DT
spring/NN
by/IN
Interface/NNP
,/,
a/DT
policy/NN
research/NN
organization/NN
./.
It/PRP
gave/VBD
1,124/CD
businesses/NNS
a/DT
questionnaire/NN
and/CC
analyzed/VBD
353/CD
responses/NNS
./.
The/DT
survey/NN
found/VBD
that/IN
over/IN
a/DT
three-year/JJ
period/NN
22/CD
%/NN
of/IN
the/DT
firms/NNS
said/VBD
employees/NNS
or/CC
owners/NNS
had/VBD
been/VBN
robbed/VBN
on/IN
their/PRP$
way/NN
to/TO
or/CC
from/IN
work/NN
or/CC
while/NN
on/IN
the/DT
job/NN
./.
Seventeen/CD
percent/NN
reported/VBD
their/PRP$
customers/NNS
being/VBG
robbed/VBN
./.
Crime/NN
was/VBD
the/DT
reason/NN
that/IN
26/CD
%/NN
reported/VBD
difficulty/NN
recruiting/VBG
personnel/NNS
and/CC
that/DT
19/CD
%/NN
said/VBD
they/PRP
were/VBD
considering/VBG
moving/VBG
./.
More/JJR
than/IN
one-third/NN
of/IN
the/DT
responding/VBG
businesses/NNS
said/VBD
they/PRP
suffer/VBP
from/IN
drug/NN
dealing/NN
and/CC
loitering/NN
near/IN
their/PRP$
premises/NNS
./.
In/IN
Brooklyn/NNP
and/CC
the/DT
Bronx/NNP
,/,
one/CD
out/IN
of/IN
four/CD
commercial/JJ
firms/NNS
is/VBZ
burglarized/VBN
each/DT
year/NN
./.
Industrial/JJ
neighborhoods/NNS
fare/VBP
even/RB
worse/RBR
,/,
with/IN
burglary/NN
rates/NNS
twice/JJ
the/DT
citywide/JJ
average/NN
./.
Crime/NN
is/VBZ
clearly/RB
more/RBR
deadly/JJ
to/TO
small-scale/JJ
entrepreneurship/NN
than/IN
to/TO
big/JJ
businesses/NNS
./.
Two/CD
decades/NNS
ago/RB
,/,
the/DT
Small/NNP
Business/NNP
Administration/NNP
reported/VBD
Yale/NNP
Prof./NNP
Albert/NNP
Reiss/NNP
's/POS
landmark/JJ
study/NN
of/IN
crime/NN
against/IN
2,500/CD
small/JJ
businesses/NNS
drawn/VBN
from/IN
national/JJ
IRS/NNP
records/NNS
./.
He/PRP
found/VBD
that/IN
monetary/JJ
crime/NN
losses/NNS
,/,
as/IN
a/DT
proportion/NN
of/IN
gross/JJ
receipts/NNS
,/,
were/VBD
37/CD
times/NNS
higher/JJR
for/IN
small/JJ
businesses/NNS
than/IN
for/IN
large/JJ
ones/NNS
./.
The/DT
New/NNP
York/NNP
study/NN
's/POS
companies/NNS
averaged/VBD
27/CD
employees/NNS
;/:
their/PRP$
annual/JJ
crime/NN
losses/NNS
averaged/VBD
about/IN
$/$
15,000/CD
,/,
with/IN
an/DT
additional/JJ
$/$
8,385/CD
annual/JJ
cost/NN
in/IN
security/NN
--/:
enough/JJ
money/NN
to/TO
hire/VB
at/IN
least/JJS
one/CD
more/JJR
worker/NN
./.
The/DT
costs/NNS
of/IN
crime/NN
may/MD
also/RB
be/VB
enough/JJ
to/TO
destroy/VB
a/DT
struggling/VBG
business/NN
./.
Whatever/WDT
the/DT
monetary/JJ
crime/NN
losses/NNS
,/,
they/PRP
may/MD
not/RB
be/VB
nearly/RB
as/RB
important/JJ
to/TO
entrepreneurs/NNS
as/IN
the/DT
risk/NN
of/IN
personal/JJ
injury/NN
./.
After/IN
repeated/VBN
gun/NN
robberies/NNS
,/,
some/DT
entrepreneurs/NNS
may/MD
give/VB
up/RP
a/DT
business/NN
out/IN
of/IN
fear/NN
for/IN
their/PRP$
lives/NNS
./.
One/CD
Washington/NNP
couple/NN
recently/RB
sold/VBD
their/PRP$
liquor/NN
store/NN
after/IN
34/CD
years/NNS
in/IN
business/NN
that/WDT
included/VBD
four/CD
robbery/NN
deaths/NNS
and/CC
16/CD
robberies/NNS
or/CC
burglaries/NNS
on/IN
the/DT
premises/NNS
./.
These/DT
findings/NNS
illustrate/VBP
the/DT
vicious/JJ
cycle/NN
that/IN
National/NNP
Institute/NNP
of/IN
Justice/NNP
Director/NNP
James/NNP
K./NNP
Stewart/NNP
calls/VBZ
``/``
crime/NN
causing/VBG
poverty/NN
./.
''/''
Underclass/JJ
neighborhoods/NNS
offer/VBP
relatively/RB
few/JJ
employment/NN
opportunities/NNS
,/,
contributing/VBG
to/TO
the/DT
poverty/NN
of/IN
local/JJ
residents/NNS
./.
Small/JJ
neighborhood/NN
businesses/NNS
could/MD
provide/VB
more/JJR
jobs/NNS
,/,
if/IN
crime/NN
were/VBD
not/RB
so/RB
harmful/JJ
to/TO
creating/VBG
and/CC
maintaining/VBG
those/DT
businesses/NNS
./.
This/DT
may/MD
help/VB
explain/VB
why/WRB
small/JJ
businesses/NNS
create/VBP
65/CD
%/NN
of/IN
all/DT
jobs/NNS
nationally/RB
,/,
but/CC
only/RB
22/CD
%/NN
of/IN
jobs/NNS
in/IN
a/DT
crime-ridden/JJ
city/NN
like/IN
New/NNP
York/NNP
./.
Bigger/JJR
business/NN
can/MD
often/RB
better/RBR
afford/VB
to/TO
minimize/VB
the/DT
cost/NN
of/IN
crime/NN
./.
The/DT
New/NNP
York/NNP
study/NN
found/VBD
that/IN
the/DT
cost/NN
of/IN
security/NN
measures/NNS
in/IN
firms/NNS
with/IN
fewer/JJR
than/IN
five/CD
employees/NNS
was/VBD
almost/RB
$/$
1,000/CD
per/IN
worker/NN
,/,
compared/VBN
with/IN
one-third/RB
that/DT
amount/NN
for/IN
firms/NNS
with/IN
more/JJR
than/IN
10/CD
employees/NNS
./.
The/DT
shift/NN
of/IN
retailing/NN
to/TO
large/JJ
shopping/NN
centers/NNS
has/VBZ
created/VBN
even/RB
greater/JJR
economies/NNS
of/IN
scale/NN
for/IN
providing/VBG
low-crime/JJ
business/NN
environments/NNS
./.
Private/JJ
security/NN
guards/NNS
and/CC
moonlighting/VBG
police/NNS
can/MD
invoke/VB
the/DT
law/NN
of/IN
trespass/NN
to/TO
regulate/VB
access/NN
to/TO
these/DT
quasi-public/JJ
places/NNS
./.
Since/IN
1984/CD
,/,
in/IN
fact/NN
,/,
revenues/NNS
of/IN
the/DT
10/CD
largest/JJS
guard/NN
companies/NNS
,/,
primarily/RB
serving/VBG
such/JJ
big/JJ
businesses/NNS
,/,
have/VBP
increased/VBN
by/IN
almost/RB
62/CD
%/NN
./.
Few/JJ
small/JJ
neighborhood/NN
businesses/NNS
,/,
however/RB
,/,
can/MD
afford/VB
such/JJ
protection/NN
,/,
even/RB
in/IN
collaboration/NN
with/IN
other/JJ
local/JJ
merchants/NNS
./.
In/IN
the/DT
neighborhoods/NNS
with/IN
the/DT
highest/JJS
crime/NN
rates/NNS
,/,
small/JJ
business/NN
generally/RB
relies/VBZ
on/IN
the/DT
public/JJ
police/NN
force/NN
for/IN
protection/NN
./.
This/DT
creates/VBZ
several/JJ
problems/NNS
./.
One/CD
is/VBZ
that/IN
there/EX
are/VBP
not/RB
enough/JJ
police/NN
to/TO
satisfy/VB
small/JJ
businesses/NNS
./.
The/DT
number/NN
one/CD
proposal/NN
for/IN
reducing/VBG
crime/NN
in/IN
the/DT
New/NNP
York/NNP
survey/NN
was/VBD
to/TO
put/VB
more/JJR
police/NNS
on/IN
foot/NN
or/CC
scooter/NN
patrol/NN
,/,
suggested/VBN
by/IN
more/JJR
than/IN
two-thirds/NNS
of/IN
the/DT
respondents/NNS
./.
Only/RB
22/CD
%/NN
supported/VBD
private/JJ
security/NN
patrols/NNS
funded/VBN
by/IN
the/DT
merchants/NNS
themselves/PRP
./.
A/DT
second/JJ
problem/NN
is/VBZ
the/DT
persistent/JJ
frustration/NN
of/IN
false/JJ
alarms/NNS
,/,
which/WDT
can/MD
make/VB
urban/JJ
police/NNS
less/RBR
than/IN
enthusiastic/JJ
about/IN
responding/VBG
to/TO
calls/NNS
from/IN
small/JJ
businesses/NNS
./.
Only/RB
half/PDT
the/DT
New/NNP
York/NNP
small/JJ
businesses/NNS
surveyed/VBN
,/,
for/IN
their/PRP$
part/NN
,/,
are/VBP
satisfied/JJ
with/IN
the/DT
police/NN
response/NN
they/PRP
receive/VBP
./.
Some/DT
cities/NNS
,/,
including/VBG
New/NNP
York/NNP
,/,
have/VBP
experimented/VBN
with/IN
special/JJ
tax/NN
districts/NNS
for/IN
commercial/JJ
areas/NNS
that/WDT
provide/VBP
additional/JJ
patrols/NNS
funded/VBN
by/IN
local/JJ
businesses/NNS
./.
But/CC
this/DT
raises/VBZ
added/VBN
cost/NN
barriers/NNS
to/TO
urban/JJ
entrepreneurship/NN
./.
Another/DT
solution/NN
cities/NNS
might/MD
consider/VB
is/VBZ
giving/VBG
special/JJ
priority/NN
to/TO
police/NN
patrols/NNS
of/IN
small-business/NN
areas/NNS
./.
For/IN
cities/NNS
losing/VBG
business/NN
to/TO
suburban/JJ
shopping/NN
centers/NNS
,/,
it/PRP
may/MD
be/VB
a/DT
wise/JJ
business/NN
investment/NN
to/TO
help/VB
keep/VB
those/DT
jobs/NNS
and/CC
sales/NNS
taxes/NNS
within/IN
city/NN
limits/NNS
./.
Increased/VBN
patrolling/NN
of/IN
business/NN
zones/NNS
makes/VBZ
sense/NN
because/IN
urban/JJ
crime/NN
is/VBZ
heavily/RB
concentrated/JJ
in/IN
such/JJ
``/``
hot/JJ
spots/NNS
''/''
of/IN
pedestrian/NN
density/NN
./.
With/IN
National/NNP
Institute/NNP
of/IN
Justice/NNP
support/NN
,/,
the/DT
Minneapolis/NNP
police/NN
and/CC
the/DT
Crime/NNP
Control/NNP
Institute/NNP
are/VBP
currently/RB
testing/VBG
the/DT
effects/NNS
of/IN
such/PDT
a/DT
strategy/NN
,/,
comparing/VBG
its/PRP$
deterrence/NN
value/NN
with/IN
traditional/JJ
random/JJ
patrols/NNS
./.
Small-business/NN
patrols/NNS
would/MD
be/VB
an/DT
especially/RB
helpful/JJ
gesture/NN
whenever/WRB
a/DT
small-business/NN
person/NN
is/VBZ
scheduled/VBN
to/TO
testify/VB
against/IN
a/DT
robbery/NN
suspect/NN
./.
While/IN
no/DT
guarantee/NN
,/,
an/DT
increased/VBN
police/NN
presence/NN
might/MD
even/RB
deter/VB
further/JJ
attacks/NNS
./.
It/PRP
might/MD
even/RB
have/VB
saved/VBN
the/DT
life/NN
,/,
and/CC
business/NN
,/,
of/IN
Israel/NNP
Ortiz/NNP
./.
Mr./NNP
Sherman/NNP
is/VBZ
a/DT
professor/NN
of/IN
criminology/NN
at/IN
the/DT
University/NNP
of/IN
Maryland/NNP
and/CC
president/NN
of/IN
the/DT
Crime/NNP
Control/NNP
Institute/NNP
in/IN
Washington/NNP
,/,
D.C/NNP
./.
story/NN
:/:
``/``
Commercial/JJ
Oases/NNS
in/IN
the/DT
Inner/JJ
City/NN
''/''
--/:
WSJ/NNP
Oct./NNP
23/CD
,/,
1989/CD
)/)
ENFIELD/NNP
Corp./NNP
said/VBD
in/IN
Toronto/NNP
that/IN
it/PRP
hopes/VBZ
to/TO
raise/VB
56/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
47.7/CD
million/CD
a/DT
rights/NNS
offering/NN
to/TO
shareholders/NNS
./.
Under/IN
the/DT
offer/NN
,/,
shareholders/NNS
can/MD
purchase/VB
one/CD
Enfield/NNP
share/NN
at/IN
C$/$
6.27/CD
for/IN
each/DT
five/CD
shares/NNS
held/VBN
./.
In/IN
Toronto/NNP
Stock/NNP
Exchange/NNP
trading/NN
Friday/NNP
,/,
Enfield/NNP
closed/VBD
at/IN
C$/$
6.75/CD
,/,
down/RB
37.5/CD
cents/NNS
./.
The/DT
holding/VBG
company/NN
said/VBD
the/DT
rights/NNS
offering/NN
should/MD
reduce/VB
its/PRP$
C$/$
171/CD
million/CD
debt/NN
to/TO
``/``
more/RBR
manageable/JJ
levels/NNS
''/''
before/IN
Dec./NNP
31/CD
and/CC
allow/VB
it/PRP
to/TO
finance/VB
future/JJ
investments/NNS
with/IN
equity/NN
capital/NN
./.
At/IN
last/JJ
report/NN
,/,
Enfield/NNP
had/VBD
about/IN
44.5/CD
million/CD
shares/NNS
outstanding/JJ
./.
Former/JJ
U.N./NNP
Ambassador/NNP
Jeane/NNP
Kirkpatrick/NNP
,/,
in/IN
a/DT
CNN/NNP
``/``
Capital/NN
Gang/NN
''/''
discussion/NN
Oct./NNP
7/CD
of/IN
House/NNP
action/NN
on/IN
federal/JJ
catastrophic-illness/JJ
insurance/NN
:/:
I/PRP
think/VBP
this/DT
repeal/NN
was/VBD
kind/NN
of/IN
a/DT
thoughtless/JJ
action/NN
,/,
as/IN
a/DT
matter/NN
of/IN
fact/NN
.../:
./.
They/PRP
will/MD
have/VB
to/TO
revisit/VB
this/DT
issue/NN
,/,
and/CC
they/PRP
'll/MD
have/VB
to/TO
revisit/VB
it/PRP
before/RB
long/RB
./.
Diversification/NN
pays/VBZ
./.
That/DT
's/VBZ
a/DT
fundamental/JJ
lesson/NN
for/IN
investors/NNS
,/,
but/CC
its/PRP$
truth/NN
was/VBD
demonstrated/VBN
once/RB
again/RB
in/IN
the/DT
performance/NN
of/IN
mutual/JJ
funds/NNS
during/IN
and/CC
after/IN
the/DT
stock/NN
market/NN
's/POS
Friday-the-13th/JJ
plunge/NN
./.
Stock/NN
funds/NNS
,/,
like/IN
the/DT
market/NN
as/IN
a/DT
whole/NN
,/,
generally/RB
dropped/VBD
more/JJR
than/IN
2/CD
%/NN
in/IN
the/DT
week/NN
through/IN
last/JJ
Thursday/NNP
,/,
according/VBG
to/TO
figures/NNS
compiled/VBN
by/IN
Lipper/NNP
Analytical/NNP
Services/NNPS
Inc/NNP
./.
That/DT
reflects/VBZ
the/DT
huge/JJ
drop/NN
a/DT
week/NN
ago/RB
Friday/NNP
,/,
last/JJ
Monday/NNP
's/POS
rebound/NN
and/CC
the/DT
dips/NNS
and/CC
blips/NNS
that/WDT
followed/VBD
./.
But/CC
several/JJ
other/JJ
types/NNS
of/IN
funds/NNS
shielded/VBD
investors/NNS
from/IN
the/DT
worst/JJS
of/IN
the/DT
market/NN
's/POS
slide/NN
./.
Funds/NNS
that/WDT
invest/VBP
internationally/RB
were/VBD
the/DT
top-performing/JJ
stock/NN
and/CC
fixed-income/JJ
funds/NNS
./.
``/``
More/RBR
than/IN
ever/RB
,/,
people/NNS
should/MD
realize/VB
they/PRP
should/MD
have/VB
a/DT
diversified/JJ
portfolio/NN
,/,
''/''
said/VBD
Jeremy/NNP
Duffield/NNP
,/,
a/DT
senior/JJ
vice/NN
president/NN
of/IN
Vanguard/NNP
Group/NNP
./.
``/``
That/DT
means/VBZ
stocks/NNS
,/,
bonds/NNS
,/,
money/NN
market/NN
instruments/NNS
and/CC
real/JJ
estate/NN
./.
''/''
One/CD
week/NN
's/POS
performance/NN
should/MD
n't/RB
be/VB
the/DT
basis/NN
for/IN
any/DT
investment/NN
decision/NN
./.
But/CC
the/DT
latest/JJS
mutual/JJ
fund/NN
performance/NN
figures/NNS
do/VBP
show/VB
what/WP
can/MD
happen/VB
when/WRB
the/DT
going/VBG
gets/VBZ
rough/JJ
./.
``/``
You/PRP
want/VBP
to/TO
know/VB
how/WRB
a/DT
fund/NN
did/VBD
when/WRB
the/DT
market/NN
got/VBD
hammered/VBN
,/,
''/''
said/VBD
Kurt/NNP
Brouwer/NNP
,/,
an/DT
investment/NN
adviser/NN
with/IN
Brouwer/NNP
&/CC
Janachowski/NNP
in/IN
San/NNP
Francisco/NNP
./.
``/``
It/PRP
's/VBZ
like/IN
kicking/VBG
the/DT
tires/NNS
of/IN
a/DT
car/NN
.../:
./.
What/WP
you/PRP
want/VBP
to/TO
know/VB
is/VBZ
when/WRB
the/DT
road/NN
's/VBZ
rough/JJ
,/,
when/WRB
there/EX
's/VBZ
snow/NN
and/CC
ice/NN
,/,
how/WRB
's/VBZ
this/DT
car/NN
going/VBG
to/TO
perform/VB
?/.
''/''
General/JJ
equity/NN
funds/NNS
fell/VBD
an/DT
average/NN
of/IN
2.35/CD
%/NN
in/IN
the/DT
week/NN
ended/VBN
Thursday/NNP
,/,
compared/VBN
with/IN
a/DT
2.32/CD
%/NN
slide/NN
for/IN
the/DT
Standard/NNP
&/CC
Poor/NNP
's/POS
500-stock/JJ
index/NN
./.
But/CC
Lipper/NNP
Analytical/NNP
's/POS
figures/NNS
show/VBP
that/IN
there/EX
were/VBD
a/DT
number/NN
of/IN
ways/NNS
investors/NNS
could/MD
have/VB
cushioned/VBN
themselves/PRP
from/IN
the/DT
stock/NN
market/NN
's/POS
gyrations/NNS
./.
Gold-oriented/JJ
funds/NNS
,/,
for/IN
instance/NN
,/,
which/WDT
invest/VBP
in/IN
companies/NNS
that/WDT
mine/VBP
and/CC
process/VBP
the/DT
precious/JJ
metal/NN
,/,
posted/VBD
an/DT
average/JJ
decline/NN
of/IN
1.15/CD
%/NN
./.
Flexible/JJ
portfolio/NN
funds/NNS
,/,
which/WDT
allocate/VBP
investments/NNS
among/IN
stocks/NNS
,/,
bonds/NNS
and/CC
money-market/NN
instruments/NNS
and/CC
other/JJ
investments/NNS
,/,
declined/VBD
at/IN
about/IN
half/PDT
the/DT
rate/NN
of/IN
stock/NN
funds/NNS
--/:
an/DT
average/JJ
drop/NN
of/IN
1.27/CD
%/NN
,/,
according/VBG
to/TO
Lipper/NNP
./.
Global/JJ
allocation/NN
funds/NNS
take/VBP
the/DT
asset-allocation/JJ
concept/NN
one/CD
step/NN
further/RBR
by/IN
investing/VBG
at/IN
least/JJS
25/CD
%/NN
of/IN
their/PRP$
portfolios/NNS
outside/IN
the/DT
U.S/NNP
./.
This/DT
gives/VBZ
them/PRP
the/DT
added/VBN
benefits/NNS
of/IN
international/JJ
diversification/NN
--/:
including/VBG
a/DT
foreign-exchange/NN
boost/NN
during/IN
periods/NNS
,/,
like/IN
the/DT
past/NN
week/NN
,/,
when/WRB
the/DT
dollar/NN
declines/VBZ
against/IN
other/JJ
major/JJ
currencies/NNS
./.
With/IN
all/PDT
that/DT
going/VBG
for/IN
them/PRP
,/,
global/JJ
flexible/JJ
portfolio/NN
funds/NNS
declined/VBD
only/RB
1.07/CD
%/NN
in/IN
the/DT
week/NN
through/IN
last/JJ
Thursday/NNP
./.
But/CC
while/IN
the/DT
merits/NNS
of/IN
diversification/NN
shine/VBP
through/RB
when/WRB
times/NNS
are/VBP
tough/JJ
,/,
there/EX
's/VBZ
also/RB
a/DT
price/NN
to/TO
pay/VB
:/:
A/DT
diversified/JJ
portfolio/NN
always/RB
underperforms/VBZ
an/DT
undiversified/JJ
portfolio/NN
during/IN
those/DT
times/NNS
when/WRB
the/DT
investment/NN
in/IN
the/DT
undiversified/JJ
portfolio/NN
is/VBZ
truly/RB
hot/JJ
./.
And/CC
Friday/NNP
the/DT
13th/NN
notwithstanding/IN
,/,
stocks/NNS
have/VBP
been/VBN
this/DT
year/NN
's/POS
hot/JJ
investment/NN
./.
Thus/RB
,/,
even/RB
including/VBG
the/DT
latest/JJS
week/NN
,/,
the/DT
average/JJ
general/JJ
stock/NN
fund/NN
has/VBZ
soared/VBN
more/JJR
than/IN
24/CD
%/NN
so/RB
far/RB
this/DT
year/NN
,/,
the/DT
Lipper/NNP
Analytical/NNP
figures/NNS
show/VBP
./.
By/IN
comparison/NN
,/,
global/JJ
asset/NN
allocation/NN
funds/NNS
have/VBP
turned/VBN
in/IN
an/DT
average/JJ
total/NN
return/NN
of/IN
about/IN
19/CD
%/NN
,/,
while/IN
domestic/JJ
flexible/JJ
portfolios/NNS
are/VBP
up/RB
about/IN
17/CD
%/NN
./.
Fixed-income/JJ
funds/NNS
have/VBP
returned/VBN
8.2/CD
%/NN
,/,
while/IN
gold/JJ
funds/NNS
,/,
which/WDT
tend/VBP
to/TO
be/VB
volatile/JJ
,/,
have/VBP
risen/VBN
just/RB
4.55/CD
%/NN
,/,
on/IN
average/NN
./.
``/``
That/DT
's/VBZ
the/DT
problem/NN
with/IN
trying/VBG
to/TO
hedge/VB
too/RB
much/JJ
,/,
''/''
said/VBD
Mr./NNP
Brouwer/NNP
./.
``/``
You/PRP
do/VBP
n't/RB
make/VB
any/DT
real/JJ
money/NN
./.
''/''
Over/IN
the/DT
last/JJ
20/CD
years/NNS
,/,
for/IN
example/NN
,/,
Mr./NNP
Brouwer/NNP
says/VBZ
,/,
an/DT
investor/NN
putting/VBG
$/$
5,000/CD
a/DT
year/NN
in/IN
the/DT
S&P/NNP
500/CD
would/MD
have/VB
made/VBN
nearly/RB
twice/RB
as/RB
much/JJ
than/IN
if/IN
it/PRP
were/VBD
invested/VBN
in/IN
Treasury/NNP
bills/NNS
./.
Some/DT
equity/NN
funds/NNS
did/VBD
better/RBR
than/RBR
others/NNS
in/IN
the/DT
week/NN
that/WDT
began/VBD
on/IN
Friday/NNP
the/DT
13th/NN
./.
The/DT
$/$
4/CD
million/CD
Monetta/NNP
Fund/NNP
,/,
for/IN
instance/NN
,/,
was/VBD
the/DT
seventh/JJ
top/JJ
performing/VBG
fund/NN
for/IN
the/DT
week/NN
,/,
with/IN
a/DT
2.65/CD
%/NN
return/NN
./.
Its/PRP$
return/NN
so/RB
far/RB
this/DT
year/NN
has/VBZ
been/VBN
a/DT
credible/JJ
21.71/CD
%/NN
./.
The/DT
fund/NN
's/POS
strategy/NN
is/VBZ
to/TO
sell/VB
when/WRB
a/DT
stock/NN
appreciates/VBZ
30/CD
%/NN
over/IN
its/PRP$
cost/NN
./.
By/IN
the/DT
time/NN
the/DT
market/NN
plummeted/VBD
10/CD
days/NNS
ago/RB
,/,
Monetta/NNP
was/VBD
55/CD
%/NN
in/IN
cash/NN
,/,
said/VBD
Robert/NNP
Bacarella/NNP
,/,
president/NN
and/CC
portfolio/NN
manager/NN
./.
Last/JJ
Monday/NNP
,/,
he/PRP
started/VBD
``/``
buying/VBG
the/DT
high-quality/JJ
growth/NN
companies/NNS
that/IN
people/NNS
were/VBD
throwing/VBG
away/RB
at/IN
discount/NN
prices/NNS
./.
''/''
Among/IN
Mr./NNP
Bacarella/NNP
's/POS
picks/NNS
:/:
Oracle/NNP
Systems/NNPS
,/,
Reebok/NNP
International/NNP
Ltd./NNP
and/CC
Digital/NNP
Microwave/NNP
Corp/NNP
./.
The/DT
fund/NN
's/POS
cash/NN
position/NN
is/VBZ
now/RB
about/IN
22/CD
%/NN
,/,
which/WDT
Mr./NNP
Bacarella/NNP
calls/VBZ
``/``
still/RB
bearish/JJ
./.
''/''
Among/IN
the/DT
big/JJ
stock/NN
funds/NNS
,/,
Dreyfus/NNP
Fund/NNP
,/,
with/IN
more/JJR
than/IN
$/$
2/CD
billion/CD
in/IN
assets/NNS
,/,
had/VBD
a/DT
decline/NN
of/IN
just/RB
1.49/CD
%/NN
for/IN
the/DT
week/NN
and/CC
a/DT
return/NN
of/IN
21.42/CD
%/NN
for/IN
the/DT
year/NN
./.
Howard/NNP
Stein/NNP
,/,
chairman/NN
of/IN
Dreyfus/NNP
Corp./NNP
,/,
said/VBD
the/DT
fund/NN
was/VBD
about/IN
half/RB
invested/VBN
in/IN
government/NN
bonds/NNS
on/IN
Oct./NNP
13/CD
,/,
and/CC
about/IN
10/CD
%/NN
in/IN
cash/NN
./.
``/``
In/IN
a/DT
downward/JJ
market/NN
,/,
bonds/NNS
act/VBP
better/RB
,/,
''/''
he/PRP
said/VBD
./.
``/``
We/PRP
still/RB
think/VB
there/EX
's/VBZ
a/DT
lot/NN
of/IN
unsettlement/NN
in/IN
this/DT
market/NN
./.
We/PRP
believe/VBP
interest/NN
rates/NNS
will/MD
continue/VB
to/TO
trend/VB
lower/RBR
,/,
and/CC
the/DT
economy/NN
will/MD
slow/VB
around/IN
the/DT
world/NN
./.
''/''
Many/JJ
of/IN
the/DT
funds/NNS
that/WDT
did/VBD
best/RBS
in/IN
the/DT
last/JJ
week/NN
are/VBP
heavily/RB
invested/VBN
overseas/RB
,/,
giving/VBG
them/PRP
the/DT
benefit/NN
of/IN
foreign/JJ
currency/NN
translations/NNS
when/WRB
the/DT
dollar/NN
is/VBZ
weak/JJ
./.
From/IN
its/PRP$
high/JJ
point/NN
on/IN
Thursday/NNP
,/,
Oct./NNP
12/CD
,/,
to/TO
where/WRB
it/PRP
traded/VBN
late/RB
in/IN
New/NNP
York/NNP
a/DT
week/NN
later/RB
,/,
the/DT
dollar/NN
fell/VBD
3.6/CD
%/NN
against/IN
the/DT
West/JJ
German/JJ
mark/NN
,/,
3.4/CD
%/NN
against/IN
the/DT
British/JJ
pound/NN
and/CC
2.1/CD
%/NN
against/IN
the/DT
Japanese/JJ
yen/NNS
./.
Three/CD
International/JJ
Cash/NN
Portfolios/NNS
funds/NNS
,/,
which/WDT
invest/VBP
almost/RB
exclusively/RB
in/IN
bonds/NNS
and/CC
money-market/NN
instruments/NNS
overseas/RB
,/,
were/VBD
among/IN
the/DT
four/CD
top-performing/JJ
funds/NNS
in/IN
the/DT
latest/JJS
week/NN
./.
Because/IN
the/DT
funds/NNS
'/POS
investments/NNS
are/VBP
denominated/VBN
in/IN
foreign/JJ
currencies/NNS
,/,
their/PRP$
value/NN
expressed/VBN
in/IN
dollars/NNS
goes/VBZ
up/RB
when/WRB
those/DT
currencies/NNS
rise/VBP
against/IN
the/DT
dollar/NN
./.
But/CC
when/WRB
the/DT
dollar/NN
rises/VBZ
against/IN
major/JJ
foreign/JJ
currencies/NNS
,/,
as/IN
it/PRP
did/VBD
for/IN
much/RB
of/IN
this/DT
year/NN
,/,
the/DT
dollar/NN
value/NN
of/IN
these/DT
funds/NNS
declines/VBZ
./.
All/DT
three/CD
funds/NNS
posted/VBD
negative/JJ
returns/NNS
for/IN
the/DT
year/NN
to/TO
date/NN
./.
Of/IN
the/DT
funds/NNS
that/WDT
fared/VBD
the/DT
worst/JJS
in/IN
the/DT
post-Oct/NNP
./.
13/CD
week/NN
,/,
two/CD
are/VBP
heavily/RB
invested/VBN
in/IN
airlines/NNS
stocks/NNS
,/,
which/WDT
led/VBD
the/DT
market/NN
slide/NN
following/VBG
problems/NNS
with/IN
financing/NN
for/IN
the/DT
UAL/NNP
Corp/NNP
./.
buy-out/NN
plan/NN
./.
Reflecting/VBG
airline/NN
takeover/NN
activity/NN
,/,
however/RB
,/,
both/DT
the/DT
Fidelity/NNP
Select/NNP
Air/NNP
Transportation/NNP
Portfolio/NNP
and/CC
the/DT
National/NNP
Aviation/NNP
&/CC
Technology/NNP
fund/NN
posted/VBD
better-than-average/JJ
returns/NNS
for/IN
the/DT
the/DT
year/NN
to/TO
date/NN
:/:
30.09/CD
%/NN
for/IN
the/DT
Fidelity/NNP
Air/NNP
Transportation/NNP
fund/NN
and/CC
a/DT
whopping/JJ
47.24/CD
%/NN
for/IN
National/NNP
Aviation/NNP
&/CC
Technology/NNP
./.
The/DT
small/JJ
drop/NN
in/IN
equity/NN
funds/NNS
in/IN
general/JJ
in/IN
the/DT
latest/JJS
week/NN
may/MD
not/RB
necessarily/RB
be/VB
a/DT
good/JJ
sign/NN
,/,
said/VBD
A./NN
Michael/NNP
Lipper/NNP
,/,
president/NN
of/IN
Lipper/NNP
Analytical/NNP
./.
Noting/VBG
that/IN
equity/NN
funds/NNS
are/VBP
up/RB
nearly/RB
60/CD
%/NN
from/IN
their/PRP$
post-crash/JJ
low/NN
on/IN
Dec./NNP
3/CD
,/,
1987/CD
,/,
he/PRP
said/VBD
that/IN
what/WP
happened/VBD
last/JJ
week/NN
``/``
may/MD
not/RB
be/VB
enough/RB
of/IN
an/DT
adjustment/NN
./.
There/EX
's/VBZ
either/RB
more/JJR
to/TO
come/VB
or/CC
an/DT
extremely/RB
long/JJ
period/NN
of/IN
dullness/NN
./.
''/''
But/CC
investors/NNS
do/VBP
n't/RB
seem/VB
to/TO
think/VB
so/RB
./.
Several/JJ
big/JJ
mutual/JJ
fund/NN
groups/NNS
said/VBD
last/JJ
week/NN
that/DT
cash/NN
flows/VBZ
into/IN
stock/NN
funds/NNS
were/VBD
heavier/JJR
than/IN
usual/JJ
after/IN
heavy/JJ
outflows/NNS
on/IN
the/DT
13th/NN
./.
Vanguard/NNP
Group/NNP
said/VBD
it/PRP
had/VBD
a/DT
more/JJR
than/IN
$/$
50/CD
million/CD
net/JJ
inflow/NN
into/IN
its/PRP$
stock/NN
funds/NNS
last/JJ
week/NN
./.
``/``
There/EX
certainly/RB
has/VBZ
n't/RB
been/VBN
a/DT
panic/NN
reaction/NN
,/,
''/''
said/VBD
Steven/NNP
Norwitz/NNP
,/,
a/DT
vice/NN
president/NN
at/IN
T./NNP
Rowe/NNP
Price/NNP
Associates/NNPS
./.
``/``
People/NNS
showed/VBD
some/DT
staying/NN
power/NN
and/CC
,/,
in/IN
fact/NN
,/,
interest/NN
in/IN
buying/VBG
equities/NNS
./.
''/''
Source/NN
:/:
Lipper/NNP
Analytical/NNP
Services/NNPS
Inc/NNP
./.
\*/SYM
Not/RB
counting/VBG
dividends/NNS
\*\*/SYM
With/IN
dividends/NNS
reinvested/VBN
Sources/NNS
:/:
Lipper/NNP
Analytical/NNP
Services/NNPS
Inc./NNP
;/:
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp/NNP
./.
Guardian/NNP
Royal/NNP
Exchange/NNP
Assurance/NNP
PLC/NNP
,/,
a/DT
major/JJ
British/JJ
composite/JJ
insurer/NN
,/,
said/VBD
it/PRP
is/VBZ
taking/VBG
a/DT
stake/NN
in/IN
Nationwide/NNP
Anglia/NNP
Building/NNP
Society/NNP
's/POS
estate/NN
agency/NN
business/NN
as/IN
part/NN
of/IN
a/DT
plan/NN
to/TO
create/VB
a/DT
range/NN
of/IN
commercial/JJ
linkages/NNS
in/IN
the/DT
U.K./NNP
and/CC
Europe/NNP
./.
Officials/NNS
declined/VBD
to/TO
disclose/VB
the/DT
value/NN
of/IN
the/DT
transaction/NN
or/CC
the/DT
exact/JJ
stake/NN
that/IN
GRE/NNP
will/MD
hold/VB
in/IN
Nationwide/NNP
Anglia/NNP
Estate/NNP
Agents/NNPS
./.
But/CC
the/DT
companies/NNS
said/VBD
that/IN
Nationwide/NNP
Anglia/NNP
Estate/NNP
Agents/NNPS
will/MD
market/VB
GRE/NNP
life/NN
insurance/NN
,/,
pension/NN
and/CC
investment/NN
products/NNS
through/IN
its/PRP$
more/JJR
than/IN
1,000/CD
retail/JJ
outlets/NNS
in/IN
the/DT
U.K/NNP
./.
Besides/IN
the/DT
marketing/NN
agreement/NN
,/,
GRE/NNP
said/VBD
Nationwide/NNP
Anglia/NNP
has/VBZ
agreed/VBN
to/TO
develop/VB
life/NN
insurance/NN
products/NNS
with/IN
the/DT
composite/JJ
insurer/NN
./.
Sitting/VBG
at/IN
the/DT
bar/NN
of/IN
the/DT
Four/NNP
Seasons/NNPS
restaurant/NN
,/,
architect/NN
William/NNP
McDonough/NNP
seems/VBZ
oblivious/JJ
to/TO
the/DT
glamorous/JJ
clientele/NNS
and/CC
the/DT
elegant/JJ
setting/NN
./.
He/PRP
is/VBZ
ogling/VBG
the/DT
curtains/NNS
rippling/VBG
above/IN
the/DT
ventilation/NN
ducts/NNS
./.
``/``
Look/VB
how/WRB
much/JJ
air/NN
is/VBZ
moving/VBG
around/RB
!/.
''/''
he/PRP
says/VBZ
./.
``/``
The/DT
ventilation/NN
here/RB
is/VBZ
great/JJ
!/.
''/''
You/PRP
may/MD
be/VB
hearing/VBG
more/JJR
about/IN
the/DT
38-year-old/JJ
Mr./NNP
McDonough/NNP
and/CC
his/PRP$
preoccupation/NN
with/IN
clean/JJ
air/NN
./.
After/IN
years/NNS
of/IN
relative/JJ
obscurity/NN
,/,
he/PRP
is/VBZ
starting/VBG
to/TO
attract/VB
notice/NN
for/IN
the/DT
ecological/JJ
as/RB
well/RB
as/IN
the/DT
aesthetic/JJ
quality/NN
of/IN
his/PRP$
architecture/NN
./.
Mr./NNP
McDonough/NNP
believes/VBZ
that/IN
the/DT
well-being/NN
of/IN
the/DT
planet/NN
depends/VBZ
on/IN
such/JJ
stratagems/NNS
as/IN
opening/VBG
windows/NNS
to/TO
cut/VB
indoor/JJ
air/NN
pollution/NN
,/,
tacking/VBG
down/RB
carpets/NNS
instead/RB
of/IN
using/VBG
toxic/JJ
glues/NNS
,/,
and/CC
avoiding/VBG
mahogany/NN
,/,
which/WDT
comes/VBZ
from/IN
endangered/JJ
rain/NN
forests/NNS
./.
He/PRP
has/VBZ
put/VBN
some/DT
of/IN
his/PRP$
aesthetic/JJ
ideas/NNS
into/IN
practice/NN
with/IN
his/PRP$
design/NN
of/IN
the/DT
four-star/JJ
Quilted/NNP
Giraffe/NNP
restaurant/NN
--/:
``/``
architecturally/RB
impeccable/JJ
,/,
''/''
Progressive/NNP
Architecture/NNP
magazine/NN
called/VBD
it/PRP
--/:
and/CC
his/PRP$
remodeling/NN
of/IN
Paul/NNP
Stuart/NNP
,/,
the/DT
Madison/NNP
Avenue/NNP
clothing/NN
store/NN
./.
He/PRP
has/VBZ
designed/VBN
furniture/NN
and/CC
homes/NNS
as/RB
well/RB
as/IN
commercial/JJ
and/CC
office/NN
space/NN
./.
He/PRP
is/VBZ
now/RB
designing/VBG
a/DT
Broadway/NNP
stage/NN
set/VBN
for/IN
a/DT
show/NN
by/IN
the/DT
band/NN
Kid/NNP
Creole/NNP
and/CC
the/DT
Coconuts/NNPS
./.
What/WP
really/RB
stirs/VBZ
his/PRP$
muse/NN
,/,
though/RB
,/,
is/VBZ
aerobic/JJ
architecture/NN
./.
Now/RB
the/DT
question/NN
is/VBZ
:/:
Is/VBZ
Poland/NNP
ready/JJ
for/IN
it/PRP
?/.
Mr./NNP
McDonough/NNP
is/VBZ
about/IN
to/TO
tackle/VB
his/PRP$
biggest/JJS
clean-air/NN
challenge/NN
yet/RB
,/,
the/DT
proposed/VBN
Warsaw/NNP
Trade/NNP
Center/NNP
in/IN
Poland/NNP
,/,
the/DT
first/RB
such/JJ
center/NN
in/IN
Eastern/NNP
Europe/NNP
./.
The/DT
project/NN
has/VBZ
already/RB
acquired/VBN
a/DT
certain/JJ
New/NNP
York/NNP
cachet/NN
./.
Bloomingdale/NNP
's/POS
plans/NNS
to/TO
sell/VB
a/DT
foot-tall/JJ
chocolate/NN
model/NN
of/IN
the/DT
center/NN
during/IN
the/DT
holidays/NNS
./.
Some/DT
of/IN
the/DT
sales/NNS
proceeds/NNS
will/MD
go/VB
to/TO
the/DT
Design/NNP
Industries/NNPS
Foundation/NNP
for/IN
AIDS/NNP
./.
A/DT
cake/NN
topped/VBN
with/IN
a/DT
replica/NN
of/IN
the/DT
center/NN
will/MD
be/VB
auctioned/VBN
at/IN
an/DT
AIDS/NNP
benefit/NN
at/IN
Sotheby/NNP
's/POS
in/IN
December/NNP
./.
If/IN
Mr./NNP
McDonough/NNP
's/POS
plans/NNS
get/VBP
executed/VBN
,/,
as/IN
much/JJ
of/IN
the/DT
Polish/JJ
center/NN
as/IN
possible/JJ
will/MD
be/VB
made/VBN
from/IN
aluminum/NN
,/,
steel/NN
and/CC
glass/NN
recycled/VBN
from/IN
Warsaw/NNP
's/POS
abundant/JJ
rubble/NN
./.
A/DT
20-story/JJ
mesh/NN
spire/NN
will/MD
stand/VB
atop/IN
50/CD
stories/NNS
of/IN
commercial/JJ
space/NN
./.
Solar-powered/JJ
batteries/NNS
will/MD
make/VB
the/DT
spire/NN
glow/NN
./.
The/DT
windows/NNS
will/MD
open/VB
./.
The/DT
carpets/NNS
wo/MD
n't/RB
be/VB
glued/VBN
down/RP
,/,
and/CC
walls/NNS
will/MD
be/VB
coated/VBN
with/IN
nontoxic/JJ
finishes/NNS
./.
To/TO
the/DT
extent/NN
that/IN
the/DT
$/$
150/CD
million/CD
budget/NN
will/MD
allow/VB
it/PRP
,/,
Mr./NNP
McDonough/NNP
will/MD
rely/VB
on/IN
solid/JJ
wood/NN
,/,
rather/RB
than/IN
plywood/NN
or/CC
particle/NN
board/NN
,/,
to/TO
limit/VB
the/DT
emission/NN
of/IN
formaldehyde/NN
./.
If/IN
Mr./NNP
McDonough/NNP
has/VBZ
his/PRP$
way/NN
,/,
the/DT
Poles/NNPS
will/MD
compensate/VB
for/IN
the/DT
trade/NN
center/NN
's/POS
emissions/NNS
of/IN
carbon/NN
dioxide/NN
,/,
a/DT
prime/JJ
suspect/NN
in/IN
the/DT
global/JJ
atmospheric/JJ
warming/NN
many/JJ
scientists/NNS
fear/VBP
./.
The/DT
Poles/NNPS
would/MD
plant/VB
a/DT
10-square-mile/JJ
forest/NN
somewhere/RB
in/IN
the/DT
country/NN
at/IN
a/DT
cost/NN
of/IN
$/$
150,000/CD
,/,
with/IN
the/DT
center/NN
's/POS
developer/NN
footing/VBG
the/DT
bill/NN
./.
The/DT
news/NN
has/VBZ
n't/RB
exactly/RB
moved/VBN
others/NNS
in/IN
Mr./NNP
McDonough/NNP
's/POS
profession/NN
to/TO
become/VB
architectural/JJ
Johnny/NNP
Appleseeds/NNPS
./.
All/DT
architects/NNS
want/VBP
to/TO
be/VB
aware/JJ
of/IN
the/DT
ecological/JJ
consequences/NNS
of/IN
their/PRP$
work/NN
,/,
says/VBZ
John/NNP
Burgee/NNP
,/,
whose/WP$
New/NNP
York/NNP
firm/NN
is/VBZ
designing/VBG
the/DT
redevelopment/NN
of/IN
Times/NNP
Square/NNP
,/,
``/``
but/CC
we/PRP
ca/MD
n't/RB
all/DT
carry/VB
it/PRP
to/TO
that/DT
extreme/NN
./.
''/''
Karen/NNP
Nichols/NNP
,/,
senior/JJ
associate/NN
at/IN
Michael/NNP
Graves/NNP
's/POS
architecture/NN
firm/NN
in/IN
Princeton/NNP
,/,
N.J./NNP
,/,
says/VBZ
:/:
``/``
We/PRP
're/VBP
really/RB
at/IN
the/DT
mercy/NN
of/IN
what/WP
the/DT
construction/NN
industry/NN
can/MD
and/CC
will/MD
do/VB
readily/RB
./.
''/''
Mr./NNP
McDonough/NNP
responds/VBZ
:/:
``/``
I/PRP
'm/VBP
asking/VBG
people/NNS
to/TO
broaden/VB
their/PRP$
agendas/NNS
./.
''/''
The/DT
son/NN
of/IN
a/DT
Seagram/NNP
's/POS
executive/NN
who/WP
was/VBD
stationed/VBN
in/IN
many/JJ
countries/NNS
around/IN
the/DT
world/NN
,/,
Mr./NNP
McDonough/NNP
was/VBD
born/VBN
in/IN
Tokyo/NNP
and/CC
attended/VBD
19/CD
schools/NNS
in/IN
places/NNS
ranging/VBG
from/IN
Hong/NNP
Kong/NNP
to/TO
Shaker/NNP
Heights/NNPS
,/,
Ohio/NNP
,/,
before/IN
entering/VBG
Dartmouth/NNP
College/NNP
./.
He/PRP
earned/VBD
a/DT
master/NN
's/POS
degree/NN
in/IN
architecture/NN
from/IN
Yale/NNP
./.
His/PRP$
interest/NN
in/IN
the/DT
natural/JJ
environment/NN
dates/VBZ
from/IN
his/PRP$
youth/NN
./.
He/PRP
and/CC
his/PRP$
father/NN
still/RB
spend/VBP
time/NN
each/DT
summer/NN
fly-fishing/NN
for/IN
salmon/NN
in/IN
Iceland/NNP
./.
Living/VBG
in/IN
Hong/NNP
Kong/NNP
,/,
he/PRP
says/VBZ
,/,
made/VBD
him/PRP
sensitive/JJ
to/TO
the/DT
limits/NNS
on/IN
food/NN
,/,
power/NN
and/CC
water/NN
supplies/NNS
./.
At/IN
his/PRP$
first/JJ
school/NN
in/IN
the/DT
U.S./NNP
he/PRP
was/VBD
thought/VBN
a/DT
little/RB
strange/JJ
for/IN
shutting/VBG
off/RP
open/JJ
water/NN
taps/NNS
and/CC
admonishing/VBG
his/PRP$
schoolmates/NNS
to/TO
take/VB
only/JJ
brief/JJ
showers/NNS
./.
He/PRP
and/CC
a/DT
Dartmouth/NNP
roommate/NN
established/VBD
a/DT
company/NN
that/WDT
restored/VBD
three/CD
hydroelectric/JJ
power/NN
plants/NNS
in/IN
Vermont/NNP
./.
At/IN
Yale/NNP
,/,
he/PRP
designed/VBD
one/CD
of/IN
the/DT
first/JJ
solarheated/JJ
houses/NNS
to/TO
be/VB
built/VBN
in/IN
Ireland/NNP
./.
Mr./NNP
McDonough/NNP
's/POS
first/JJ
professional/JJ
project/NN
fully/RB
to/TO
reflect/VB
his/PRP$
environmental/JJ
ardor/NN
was/VBD
his/PRP$
1986/CD
design/NN
for/IN
the/DT
headquarters/NN
of/IN
the/DT
Environmental/NNP
Defense/NNP
Fund/NNP
in/IN
New/NNP
York/NNP
./.
The/DT
offices/NNS
took/VBD
10,000/CD
square/JJ
feet/NNS
of/IN
a/DT
building/NN
with/IN
14-foot/JJ
ceilings/NNS
and/CC
big/JJ
,/,
operable/JJ
windows/NNS
./.
Since/IN
the/DT
1970s/NNS
energy/NN
crisis/NN
,/,
some/DT
efforts/NNS
to/TO
conserve/VB
energy/NN
by/IN
sealing/VBG
buildings/NNS
have/VBP
had/VBN
an/DT
unintended/JJ
side/NN
effect/NN
:/:
high/JJ
indoor/JJ
pollution/NN
./.
To/TO
reduce/VB
it/PRP
at/IN
the/DT
fund/NN
's/POS
building/NN
,/,
workers/NNS
rubbed/VBD
beeswax/NN
instead/RB
of/IN
polyurethane/NN
on/IN
the/DT
floors/NNS
in/IN
the/DT
executive/JJ
director/NN
's/POS
office/NN
./.
Jute/NN
,/,
rather/RB
than/IN
a/DT
synthetic/NN
material/NN
,/,
lies/VBZ
under/IN
the/DT
tacked-down/JJ
carpets/NNS
,/,
and/CC
the/DT
desks/NNS
are/VBP
of/IN
wood/NN
and/CC
granite/NN
instead/RB
of/IN
plastic/NN
./.
The/DT
budget/NN
was/VBD
only/RB
$/$
400,000/CD
./.
``/``
Athens/NNP
with/IN
Spartan/JJ
means/NNS
,/,
''/''
Mr./NNP
McDonough/NNP
says/VBZ
./.
The/DT
fund/NN
's/POS
lawyers/NNS
work/VBP
in/IN
an/DT
Athenian/JJ
grove/NN
of/IN
potted/JJ
trees/NNS
./.
Economists/NNS
and/CC
administrators/NNS
sit/VBP
along/IN
a/DT
``/``
boulevard/NN
''/''
with/IN
street/NN
lamps/NNS
and/CC
ficus/NN
trees/NNS
./.
In/IN
offices/NNS
,/,
triphosphorous/JJ
bulbs/NNS
simulate/VBP
daylight/NN
./.
Offices/NNS
with/IN
outside/JJ
windows/NNS
have/VBP
inside/JJ
windows/NNS
,/,
too/RB
,/,
to/TO
let/VB
in/IN
more/RBR
real/JJ
daylight/NN
./.
``/``
We/PRP
proved/VBD
a/DT
healthy/JJ
office/NN
does/VBZ
n't/RB
cost/VB
more/JJR
,/,
''/''
says/VBZ
Frederic/NNP
Krupp/NNP
,/,
executive/NN
director/NN
of/IN
the/DT
fund/NN
./.
It/PRP
``/``
really/RB
looks/VBZ
beautiful/JJ
and/CC
is/VBZ
very/RB
light/JJ
,/,
''/''
says/VBZ
Ann/NNP
Hornaday/NNP
,/,
a/DT
free-lance/JJ
writer/NN
who/WP
has/VBZ
visited/VBN
the/DT
office/NN
for/IN
lunch/NN
meetings/NNS
./.
But/CC
,/,
she/PRP
says/VBZ
,/,
``/``
I/PRP
guess/VBP
I/PRP
did/VBD
n't/RB
really/RB
notice/VB
the/DT
trees/NNS
./.
Maybe/RB
they/PRP
were/VBD
hidden/VBN
by/IN
all/PDT
the/DT
people/NNS
./.
''/''
Neither/CC
the/DT
Quilted/NNP
Giraffe/NNP
nor/CC
the/DT
Paul/NNP
Stuart/NNP
renovation/NN
reflects/VBZ
much/JJ
of/IN
Mr./NNP
McDonough/NNP
's/POS
environmental/JJ
concern/NN
./.
The/DT
restaurant/NN
was/VBD
conceived/VBN
as/IN
a/DT
sparkling/JJ
,/,
crystalline/JJ
``/``
geode/NN
./.
''/''
It/PRP
makes/VBZ
extensive/JJ
use/NN
of/IN
stainless/JJ
steel/NN
,/,
silver/NN
and/CC
aluminum/NN
that/WDT
sets/VBZ
off/RP
black/JJ
granite/NN
table/NN
tops/NNS
and/CC
a/DT
gray/JJ
terrazzo/NN
with/IN
zinc-strip/JJ
floors/NNS
./.
To/TO
more/RBR
than/IN
replace/VB
the/DT
wood/NN
from/IN
two/CD
English/JJ
oaks/NNS
used/VBN
for/IN
paneling/NN
at/IN
Paul/NNP
Stuart/NNP
,/,
however/RB
,/,
Mr./NNP
McDonough/NNP
and/CC
friends/NNS
planted/VBD
1,000/CD
acorns/NNS
around/IN
the/DT
country/NN
./.
The/DT
ambitious/JJ
Warsaw/NNP
project/NN
still/RB
awaits/VBZ
approval/NN
by/IN
city/NN
officials/NNS
./.
Its/PRP$
developer/NN
is/VBZ
a/DT
Polish/NNP
American/NNP
,/,
Sasha/NNP
Muniak/NNP
./.
He/PRP
had/VBD
worked/VBN
with/IN
Mr./NNP
McDonough/NNP
on/IN
an/DT
earlier/JJR
project/NN
and/CC
recruited/VBD
him/PRP
as/IN
architect/NN
for/IN
the/DT
trade/NN
center/NN
./.
The/DT
center/NN
will/MD
provide/VB
space/NN
for/IN
computer/NN
hardware/NN
and/CC
facsimile/NN
and/CC
other/JJ
telecommunications/NN
equipment/NN
,/,
not/RB
readily/RB
accessible/JJ
in/IN
Poland/NNP
now/RB
,/,
for/IN
a/DT
growing/VBG
number/NN
of/IN
Westerners/NNPS
doing/VBG
business/NN
in/IN
Eastern/NNP
Europe/NNP
./.
Mr./NNP
McDonough/NNP
thinks/VBZ
of/IN
the/DT
center/NN
as/IN
the/DT
``/``
Eiffel/NNP
Tower/NNP
of/IN
Warsaw/NNP
''/''
and/CC
``/``
a/DT
symbol/NN
of/IN
the/DT
resurgence/NN
of/IN
Poland/NNP
./.
''/''
If/IN
any/DT
nation/NN
can/MD
use/VB
environmentally/RB
benign/JJ
architecture/NN
,/,
it/PRP
is/VBZ
Poland/NNP
./.
Jessica/NNP
Mathews/NNP
,/,
vice/NN
president/NN
of/IN
World/NNP
Resources/NNPS
Institute/NNP
in/IN
Washington/NNP
,/,
D.C./NNP
,/,
says/VBZ
that/IN
perhaps/RB
a/DT
quarter/NN
of/IN
Poland/NNP
's/POS
soil/NN
is/VBZ
too/RB
contaminated/VBN
for/IN
safe/JJ
farming/NN
because/IN
of/IN
air/NN
pollution/NN
./.
The/DT
pollution/NN
is/VBZ
also/RB
killing/VBG
forests/NNS
and/CC
destroying/VBG
buildings/NNS
that/WDT
date/VBP
back/RB
to/TO
the/DT
Middle/NNP
Ages/NNPS
./.
The/DT
future/NN
of/IN
the/DT
forest/NN
remains/VBZ
uncertain/JJ
./.
Mr./NNP
Muniak/NNP
's/POS
company/NN
,/,
Balag/NNP
Ltd./NNP
,/,
has/VBZ
agreed/VBN
to/TO
set/VB
aside/RB
the/DT
money/NN
to/TO
plant/VB
and/CC
maintain/VB
it/PRP
,/,
but/CC
discussions/NNS
are/VBP
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going/VBG
on/RB
over/IN
where/WRB
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place/VB
it/PRP
and/CC
how/WRB
to/TO
ensure/VB
that/IN
it/PRP
will/MD
be/VB
maintained/VBN
./.
After/IN
all/DT
,/,
Mr./NNP
Muniak/NNP
says/VBZ
,/,
``/``
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Poland/NNP
there/EX
are/VBP
n't/RB
too/RB
many/JJ
people/NNS
worried/JJ
about/IN
the/DT
environment/NN
./.
They/PRP
're/VBP
more/RBR
worried/JJ
about/IN
bread/NN
on/IN
the/DT
table/NN
./.
''/''
Pittston/NNP
Co./NNP
's/POS
third-quarter/JJ
net/JJ
income/NN
plunged/VBD
79/CD
%/NN
,/,
reflecting/VBG
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impact/NN
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a/DT
prolonged/JJ
and/CC
bitter/JJ
labor/NN
strike/NN
at/IN
its/PRP$
coal/NN
operations/NNS
./.
Net/NN
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$/$
3.1/CD
million/CD
,/,
or/CC
eight/CD
cents/NNS
a/DT
share/NN
,/,
including/VBG
$/$
789,000/CD
,/,
or/CC
two/CD
cents/NNS
a/DT
share/NN
,/,
reflecting/VBG
a/DT
tax-loss/JJ
carry-forward/NN
./.
In/IN
the/DT
year-ago/JJ
quarter/NN
,/,
net/NN
totaled/VBD
$/$
14.7/CD
million/CD
,/,
or/CC
38/CD
cents/NNS
a/DT
share/NN
,/,
including/VBG
$/$
4/CD
million/CD
,/,
or/CC
10/CD
cents/NNS
a/DT
share/NN
,/,
reflecting/VBG
a/DT
tax-loss/JJ
carry-forward/NN
./.
Revenue/NN
slipped/VBD
0.7/CD
%/NN
to/TO
$/$
395.3/CD
million/CD
from/IN
$/$
398.3/CD
million/CD
./.
Pittston/NNP
also/RB
owns/VBZ
Brink/NNP
's/POS
Inc./NN
,/,
the/DT
security/NN
service/NN
,/,
and/CC
Burlington/NNP
Air/NNP
Express/NNP
,/,
the/DT
air-freight/JJ
concern/NN
./.
In/IN
addition/NN
to/TO
expected/JJ
losses/NNS
tied/VBN
to/TO
the/DT
labor/NN
strike/NN
,/,
the/DT
coal/NN
group/NN
has/VBZ
spent/VBN
almost/RB
$/$
20/CD
million/CD
since/IN
the/DT
strike/NN
began/VBD
for/IN
security/NN
,/,
the/DT
company/NN
said/VBD
./.
As/IN
a/DT
result/NN
,/,
the/DT
group/NN
's/POS
third-quarter/JJ
loss/NN
widened/VBD
to/TO
$/$
9.8/CD
million/CD
from/IN
the/DT
second/JJ
quarter/NN
's/POS
$/$
3.6/CD
million/CD
./.
Pittston/NNP
continues/VBZ
to/TO
hire/VB
replacement/NN
workers/NNS
,/,
the/DT
company/NN
said/VBD
./.
Burlington/NNP
's/POS
operating/NN
profit/NN
grew/VBD
to/TO
$/$
9.2/CD
million/CD
from/IN
$/$
3.8/CD
million/CD
a/DT
year/NN
earlier/RB
,/,
Pittston/NNP
said/VBD
./.
While/IN
``/``
the/DT
tone/NN
''/''
of/IN
domestic/JJ
and/CC
international/JJ
air-freight/JJ
markets/NNS
remains/VBZ
sound/JJ
,/,
seasonal/JJ
factors/NNS
are/VBP
likely/JJ
to/TO
hinder/VB
Burlington/NNP
Air/NNP
from/IN
matching/VBG
third-quarter/JJ
results/NNS
in/IN
the/DT
fourth/JJ
quarter/NN
,/,
Pittston/NNP
said/VBD
./.
Brink/NNP
's/POS
operating/NN
profit/NN
was/VBD
about/IN
flat/RB
with/IN
the/DT
year-earlier/JJ
period/NN
,/,
reflecting/VBG
continued/JJ
pricing/NN
and/CC
cost/NN
pressures/NNS
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
Friday/NNP
,/,
Pittston/NNP
closed/VBD
at/IN
$/$
18.50/CD
a/DT
share/NN
,/,
down/RB
12.5/CD
cents/NNS
./.
Does/VBZ
n't/RB
anybody/NN
here/RB
want/VB
to/TO
win/VB
this/DT
mayor/NN
's/POS
race/NN
?/.
As/IN
they/PRP
stumble/VBP
and/CC
bumble/VBP
toward/IN
election/NN
day/NN
two/CD
weeks/NNS
from/IN
tomorrow/NN
,/,
both/DT
Democrat/NNP
David/NNP
Dinkins/NNP
and/CC
Republican/NNP
Rudolph/NNP
Giuliani/NNP
are/VBP
in/IN
trouble/NN
./.
Mr./NNP
Dinkins/NNP
,/,
the/DT
Manhattan/NNP
borough/NN
president/NN
,/,
can/MD
afford/VB
more/RBR
bumbling/VBG
and/CC
stumbling/VBG
because/IN
he/PRP
holds/VBZ
a/DT
comfortable/JJ
20-point/JJ
lead/NN
in/IN
most/JJS
of/IN
the/DT
public-opinion/JJ
polls/NNS
./.
But/CC
,/,
in/IN
the/DT
past/JJ
10/CD
days/NNS
,/,
he/PRP
has/VBZ
taken/VBN
a/DT
series/NN
of/IN
body/NN
blows/NNS
to/TO
his/PRP$
pride/NN
and/CC
his/PRP$
reputation/NN
that/WDT
could/MD
adversely/RB
affect/VB
his/PRP$
ability/NN
to/TO
govern/VB
this/DT
tumultuous/JJ
city/NN
should/MD
he/PRP
become/VB
New/NNP
York/NNP
's/POS
first/JJ
black/JJ
mayor/NN
./.
Ordinarily/RB
,/,
a/DT
clever/JJ
opponent/NN
would/MD
find/VB
a/DT
way/NN
to/TO
capitalize/VB
on/IN
the/DT
other/JJ
side/NN
's/POS
misfortunes/NNS
./.
But/CC
Mr./NNP
Giuliani/NNP
,/,
a/DT
celebrated/JJ
prosecutor/NN
,/,
has/VBZ
had/VBN
difficulty/NN
switching/VBG
from/IN
his/PRP$
crime-busting/JJ
,/,
finger-pointing/JJ
mode/NN
to/TO
a/DT
political/JJ
stance/NN
that/WDT
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he/PRP
might/MD
know/VB
something/NN
about/IN
running/VBG
this/DT
big/JJ
,/,
troubled/JJ
city/NN
./.
And/CC
now/RB
,/,
at/IN
the/DT
crucial/JJ
moment/NN
,/,
he/PRP
's/VBZ
running/VBG
out/RB
of/IN
money/NN
./.
This/DT
is/VBZ
the/DT
nation/NN
's/POS
biggest/JJS
city/NN
and/CC
,/,
traditionally/RB
,/,
its/PRP$
mayor/NN
is/VBZ
the/DT
nation/NN
's/POS
best-known/JJS
urban/JJ
politician/NN
./.
Democrats/NNPS
hoped/VBD
that/IN
Mr./NNP
Dinkins/NNP
could/MD
become/VB
a/DT
highly/RB
visible/JJ
national/JJ
leader/NN
./.
Republicans/NNPS
figured/VBD
that/IN
in/IN
Mr./NNP
Giuliani/NNP
,/,
the/DT
nation/NN
's/POS
best-known/JJS
prosecutor/NN
,/,
they/PRP
had/VBD
a/DT
chance/NN
for/IN
a/DT
huge/JJ
upset/NN
in/IN
the/DT
heart/NN
of/IN
Democratic/JJ
territory/NN
and/CC
that/IN
they/PRP
would/MD
pick/VB
up/RP
a/DT
new/JJ
political/JJ
star/NN
./.
But/CC
it/PRP
has/VBZ
n't/RB
worked/VBN
out/RB
that/DT
way/NN
./.
``/``
Dinkins/NNP
is/VBZ
a/DT
decent/JJ
but/CC
sloppy/JJ
guy/NN
,/,
''/''
says/VBZ
David/NNP
Garth/NNP
,/,
veteran/NN
campaign/NN
consultant/NN
here/RB
who/WP
has/VBZ
always/RB
worked/VBN
for/IN
Mayor/NNP
Edward/NNP
Koch/NNP
,/,
defeated/VBN
by/IN
Mr./NNP
Dinkins/NNP
in/IN
the/DT
Sept./NNP
12/CD
Democratic/JJ
primary/NN
./.
``/``
The/DT
alternative/NN
--/:
Giuliani/NNP
--/:
is/VBZ
ghastly/JJ
./.
''/''
``/``
I/PRP
guess/VBP
we/PRP
'll/MD
reluctantly/RB
go/VB
ahead/RB
and/CC
do/VB
it/PRP
,/,
vote/VB
for/IN
Dinkins/NNP
,/,
''/''
says/VBZ
Richard/NNP
Wade/NNP
,/,
a/DT
politically/RB
active/JJ
professor/NN
who/WP
supported/VBD
Richard/NNP
Ravitch/NNP
,/,
an/DT
also-ran/NN
in/IN
the/DT
Democratic/JJ
primary/NN
./.
``/``
There/EX
's/VBZ
nothing/NN
on/IN
the/DT
other/JJ
side/NN
./.
''/''
``/``
We/PRP
're/VBP
picking/VBG
up/RP
steam/NN
,/,
''/''
insists/VBZ
Roger/NNP
Ailes/NNP
,/,
Mr./NNP
Giuliani/NNP
's/POS
media/NNS
consultant/NN
,/,
whose/WP$
last/JJ
big/JJ
campaign/NN
helped/VBD
put/VBN
George/NNP
Bush/NNP
in/IN
the/DT
White/NNP
House/NNP
./.
He/PRP
adds/VBZ
:/:
``/``
It/PRP
just/RB
has/VBZ
n't/RB
gotten/VBN
down/IN
to/TO
the/DT
engine/NN
room/NN
yet/RB
./.
''/''
But/CC
the/DT
steam/NN
may/MD
never/RB
reach/VB
the/DT
engine/NN
room/NN
./.
For/IN
,/,
just/RB
as/IN
Mr./NNP
Giuliani/NNP
latches/VBZ
on/IN
to/TO
an/DT
issue/NN
that/WDT
has/VBZ
Mr./NNP
Dinkins/NNP
reeling/VBG
,/,
his/PRP$
campaign/NN
desperately/RB
needs/VBZ
cash/NN
to/TO
keep/VB
Mr./NNP
Ailes/NNP
's/POS
commercials/NNS
on/IN
the/DT
air/NN
beyond/IN
Wednesday/NNP
or/CC
Thursday/NNP
./.
To/TO
help/VB
out/RB
this/DT
week/NN
,/,
the/DT
White/NNP
House/NNP
is/VBZ
dispatching/VBG
chief/NN
of/IN
staff/NN
John/NNP
Sununu/NNP
and/CC
three/CD
Cabinet/NNP
members/NNS
--/:
HUD/NNP
's/POS
Jack/NNP
Kemp/NNP
,/,
Transportation/NNP
's/POS
Samuel/NNP
Skinner/NNP
and/CC
Treasury/NNP
's/POS
Nicholas/NNP
Brady/NNP
,/,
according/VBG
to/TO
Peter/NNP
Powers/NNP
,/,
the/DT
Giuliani/NNP
campaign/NN
manager/NN
./.
For/IN
Republicans/NNPS
who/WP
began/VBD
this/DT
campaign/NN
with/IN
such/JJ
high/JJ
hopes/NNS
,/,
all/DT
of/IN
this/DT
is/VBZ
deeply/RB
frustrating/JJ
./.
Historically/NNP
,/,
New/NNP
York/NNP
is/VBZ
almost/RB
always/RB
in/IN
trouble/NN
./.
But/CC
the/DT
trouble/NN
it/PRP
faces/VBZ
now/RB
under/IN
Democratic/JJ
rule/NN
seems/VBZ
bigger/JJR
and/CC
more/RBR
daunting/JJ
than/IN
anything/NN
it/PRP
has/VBZ
faced/VBN
in/IN
the/DT
past/NN
./.
This/DT
year/NN
,/,
the/DT
city/NN
faces/VBZ
a/DT
budget/NN
deficit/NN
that/WDT
could/MD
become/VB
even/RB
bigger/JJR
next/JJ
year/NN
./.
And/CC
hardly/RB
surprising/JJ
,/,
many/JJ
residents/NNS
trying/VBG
to/TO
cope/VB
with/IN
the/DT
city/NN
's/POS
other/JJ
problems/NNS
are/VBP
constantly/RB
on/IN
edge/NN
,/,
one/CD
ethnic/JJ
group/NN
scrapping/VBG
with/IN
another/DT
./.
``/``
People/NNS
were/VBD
n't/RB
so/RB
happy/JJ
in/IN
the/DT
1930s/NNS
,/,
''/''
says/VBZ
Thomas/NNP
Lessner/NNP
,/,
another/DT
local/JJ
professor/NN
and/CC
the/DT
biographer/NN
of/IN
the/DT
legendary/JJ
Fiorello/NNP
LaGuardia/NNP
,/,
the/DT
city/NN
's/POS
fusion/NN
mayor/NN
who/WP
built/VBD
a/DT
coalition/NN
Mr./NNP
Giuliani/NNP
hopes/VBZ
to/TO
emulate/VB
./.
``/``
But/CC
,/,
at/IN
least/JJS
,/,
back/RB
then/RB
they/PRP
did/VBD
n't/RB
generally/RB
direct/VB
their/PRP$
anger/NN
at/IN
each/DT
other/JJ
./.
''/''
The/DT
62-year-old/JJ
Mr./NNP
Dinkins/NNP
,/,
an/DT
ex-Marine/NN
,/,
has/VBZ
served/VBN
as/IN
the/DT
city/NN
clerk/NN
and/CC
as/IN
Manhattan/NNP
borough/NN
president/NN
,/,
a/DT
job/NN
with/IN
limited/JJ
executive/NN
responsibilities/NNS
``/``
I/PRP
defy/VBP
you/PRP
to/TO
come/VB
up/RB
with/IN
one/CD
major/JJ
accomplishment/NN
of/IN
David/NNP
Dinkins/NNP
,/,
''/''
says/VBZ
Mr./NNP
Giuliani/NNP
./.
He/PRP
defeated/VBD
the/DT
contentious/JJ
Mr./NNP
Koch/NNP
in/IN
the/DT
Democratic/JJ
primary/NN
partly/RB
because/IN
he/PRP
seemed/VBD
to/TO
offer/VB
hope/NN
he/PRP
could/MD
heal/VB
the/DT
city/NN
's/POS
racial/JJ
and/CC
ethnic/JJ
wounds/NNS
./.
His/PRP$
general-election/JJ
campaign/NN
is/VBZ
almost/RB
Reagan-like/JJ
,/,
all/DT
muted/JJ
pictures/NNS
and/CC
comforting/JJ
words/NNS
./.
His/PRP$
theme/NN
is/VBZ
unity/NN
,/,
decency/NN
,/,
humanity/NN
,/,
bringing/VBG
New/NNP
York/NNP
together/RB
again/RB
./.
Both/DT
candidates/NNS
are/VBP
negotiating/VBG
about/IN
holding/VBG
debates/NNS
,/,
but/CC
Mr./NNP
Dinkins/NNP
is/VBZ
widely/RB
seen/VBN
as/IN
the/DT
major/JJ
obstacle/NN
for/IN
scheduling/VBG
them/PRP
./.
The/DT
45-year-old/JJ
Mr./NNP
Giuliani/NNP
has/VBZ
run/VBN
a/DT
negative/JJ
campaign/NN
to/TO
pick/VB
up/RP
votes/NNS
leaning/VBG
to/TO
Mr./NNP
Dinkins/NNP
./.
``/``
He/PRP
's/VBZ
got/VBD
to/TO
get/VB
Dinkins/NNP
's/POS
negatives/NNS
up/RP
,/,
''/''
says/VBZ
Lee/NNP
Miringoff/NNP
,/,
director/NN
of/IN
the/DT
Marist/NNP
College/NNP
Institute/NNP
of/IN
Public/NNP
Opinion/NNP
./.
``/``
But/CC
our/PRP$
polls/NNS
show/VBP
voters/NNS
do/VBP
n't/RB
like/VB
the/DT
attack/NN
stuff/NN
./.
Why/WRB
,/,
even/RB
20/CD
%/NN
of/IN
the/DT
Republican/JJ
vote/NN
is/VBZ
going/VBG
to/TO
Dinkins/NNP
./.
''/''
``/``
It/PRP
's/VBZ
assault-weapons/JJ
politics/NNS
,/,
''/''
says/VBZ
John/NNP
Siegal/NNP
,/,
Mr./NNP
Dinkins/NNP
's/POS
issues/NNS
director/NN
,/,
insisting/VBG
there/EX
is/VBZ
a/DT
strong/JJ
racist/JJ
undertone/NN
to/TO
the/DT
Giuliani/NNP
effort/NN
./.
For/IN
the/DT
Giuliani/NNP
forces/NNS
,/,
it/PRP
's/VBZ
a/DT
conundrum/NN
./.
On/IN
the/DT
one/CD
hand/NN
,/,
Mr./NNP
Giuliani/NNP
wants/VBZ
to/TO
cut/VB
into/IN
Mr./NNP
Dinkins/NNP
's/POS
credibility/NN
./.
On/IN
the/DT
other/JJ
,/,
he/PRP
seeks/VBZ
to/TO
convince/VB
voters/NNS
he/PRP
's/VBZ
the/DT
new/JJ
Fiorello/NNP
LaGuardia/NNP
--/:
affable/JJ
,/,
good-natured/JJ
and/CC
ready/JJ
to/TO
lead/VB
New/NNP
York/NNP
out/IN
of/IN
the/DT
mess/NN
it/PRP
's/VBZ
in/IN
./.
It/PRP
has/VBZ
n't/RB
helped/VBN
that/IN
he/PRP
's/VBZ
waffled/VBN
on/IN
abortion/NN
and/CC
gay/JJ
rights/NNS
,/,
sought/VBN
the/DT
support/NN
of/IN
both/DT
the/DT
Liberal/JJ
and/CC
Conservative/JJ
parties/NNS
he/PRP
won/VBD
the/DT
Liberal/JJ
endorsement/NN
he/PRP
turned/VBD
to/TO
comedian/NN
Jackie/NNP
Mason/NNP
for/IN
help/NN
with/IN
Jewish/JJ
voters/NNS
./.
Mr./NNP
Mason/NNP
left/VBD
the/DT
campaign/NN
after/IN
telling/VBG
reporters/NNS
Mr./NNP
Dinkins/NNP
is/VBZ
``/``
a/DT
fancy'shvartzer/NN
'/''
with/IN
a/DT
moustache/NN
./.
''/''
Shvartzer/NNP
is/VBZ
a/DT
derogatory/JJ
Yiddish/JJ
word/NN
for/IN
a/DT
black/JJ
person/NN
./.
Mr./NNP
Dinkins/NNP
concedes/VBZ
nothing/NN
in/IN
his/PRP$
ability/NN
to/TO
stumble/VB
and/CC
bumble/VB
./.
He/PRP
can/MD
match/VB
Jackie/NNP
Mason/NNP
with/IN
his/PRP$
own/JJ
Robert/NNP
``/``
Sonny/NNP
''/''
Carson/NNP
,/,
an/DT
angry/JJ
street/NN
organizer/NN
who/WP
was/VBD
convicted/VBN
of/IN
kidnapping/NN
in/IN
1974/CD
./.
The/DT
Dinkins/NNP
campaign/NN
paid/VBD
Mr./NNP
Carson/NNP
close/JJ
to/TO
$/$
10,000/CD
to/TO
get/VB
out/RP
the/DT
vote/NN
on/IN
primary-election/NN
day/NN
./.
Paper/NN
work/NN
on/IN
how/WRB
it/PRP
was/VBD
spent/VBN
is/VBZ
incomplete/JJ
./.
Mr./NNP
Carson/NNP
has/VBZ
been/VBN
charged/VBN
with/IN
being/VBG
anti-Semitic/JJ
./.
Asked/VBN
about/IN
that/IN
the/DT
other/JJ
day/NN
,/,
he/PRP
replied/VBD
,/,
``/``
Anti-Semitic/JJ
?/.
I/PRP
'm/VBP
anti-white/JJ
./.
''/''
More/RBR
troubling/JJ
for/IN
Mr./NNP
Dinkins/NNP
is/VBZ
his/PRP$
record/NN
in/IN
personal/JJ
accounting/NN
./.
It/PRP
began/VBD
in/IN
1973/CD
,/,
when/WRB
he/PRP
was/VBD
being/VBG
considered/VBN
for/IN
deputy/NN
mayor/NN
,/,
and/CC
a/DT
routine/JJ
check/NN
unearthed/VBD
the/DT
extraordinary/JJ
fact/NN
that/IN
he/PRP
had/VBD
n't/RB
paid/VBN
his/PRP$
income/NN
tax/NN
for/IN
the/DT
previous/JJ
four/CD
years/NNS
./.
``/``
I/PRP
was/VBD
always/RB
going/VBG
to/TO
do/VB
it/PRP
tomorrow/NN
,/,
''/''
he/PRP
explained/VBD
at/IN
the/DT
time/NN
./.
And/CC
now/RB
he/PRP
's/VBZ
busily/RB
trying/VBG
to/TO
explain/VB
an/DT
arrangement/NN
in/IN
which/WDT
he/PRP
sold/VBD
stock/NN
in/IN
Inner/NNP
City/NNP
Broadcasting/NNP
Co./NNP
,/,
headed/VBN
by/IN
his/PRP$
old/JJ
friend/NN
and/CC
patron/NN
,/,
Percy/NNP
Sutton/NNP
,/,
to/TO
his/PRP$
son/NN
,/,
David/NNP
Dinkins/NNP
Jr./NNP
,/,
for/IN
$/$
58,000/CD
./.
He/PRP
had/VBD
valued/VBN
the/DT
shares/NNS
at/IN
more/JJR
than/IN
$/$
1/CD
million/CD
two/CD
years/NNS
earlier/RB
./.
He/PRP
says/VBZ
he/PRP
sold/VBD
the/DT
stock/NN
to/TO
avoid/VB
conflict-of-interest/NN
problems/NNS
in/IN
his/PRP$
role/NN
as/IN
a/DT
voting/VBG
member/NN
of/IN
the/DT
city/NN
's/POS
Board/NNP
of/IN
Estimate/NNP
./.
He/PRP
says/VBZ
his/PRP$
son/NN
has/VBZ
n't/RB
paid/VBN
for/IN
the/DT
shares/NNS
./.
``/``
It/PRP
looks/VBZ
like/IN
serious/JJ
tax/NN
evasion/NN
,/,
''/''
says/VBZ
Mr./NNP
Ailes/NNP
,/,
the/DT
Giuliani/NNP
media/NNS
consultant/NN
./.
``/``
It/PRP
follows/VBZ
the/DT
same/JJ
pattern/NN
as/IN
his/PRP$
tax/NN
returns/NNS
./.
He/PRP
waits/VBZ
to/TO
talk/VB
about/IN
it/PRP
until/IN
after/IN
he/PRP
gets/VBZ
caught/VBN
./.
''/''
``/``
He/PRP
simply/RB
has/VBZ
n't/RB
explained/VBN
why/WRB
something/NN
worth/JJ
a/DT
million/CD
dollars/NNS
ended/VBD
up/RB
worth/JJ
$/$
58,000/CD
two/CD
years/NNS
later/RB
,/,
''/''
says/VBZ
Mr./NNP
Powers/NNP
,/,
the/DT
Giuliani/NNP
campaign/NN
manager/NN
./.
``/``
It/PRP
's/VBZ
ludicrous/JJ
for/IN
him/PRP
to/TO
suggest/VB
it/PRP
's/VBZ
the/DT
difference/NN
between/IN
the'breakup/NN
'/''
value/NN
of/IN
the/DT
shares/NNS
and/CC
their/PRP$
market/NN
value/NN
./.
''/''
So/RB
far/RB
though/RB
,/,
no/DT
one/NN
--/:
not/RB
even/RB
former/JJ
U.S./NNP
attorney/NN
Giuliani/NNP
--/:
has/VBZ
been/VBN
able/JJ
to/TO
pinpoint/VB
just/RB
what/WDT
law/NN
Mr./NNP
Dinkins/NNP
has/VBZ
broken/VBN
or/CC
just/RB
what/WDT
tax/NN
he/PRP
has/VBZ
evaded/VBN
./.
``/``
The/DT
crime/NN
goes/VBZ
to/TO
character/NN
,/,
''/''
says/VBZ
Ron/NNP
Maiorana/NNP
,/,
a/DT
consultant/NN
to/TO
the/DT
Giuliani/NNP
campaign/NN
./.
``/``
It/PRP
's/VBZ
serious/JJ
stuff/NN
./.
He/PRP
evades/VBZ
and/CC
ducks/VBZ
./.
He/PRP
's/VBZ
had/VBN
a/DT
history/NN
of/IN
deception/NN
and/CC
this/DT
is/VBZ
the/DT
latest/JJS
chapter/NN
./.
''/''
``/``
It/PRP
makes/VBZ
people/NNS
think/VB
,/,
maybe/RB
this/DT
guy/NN
is/VBZ
n't/RB
so/RB
squeaky/RB
clean/JJ
after/IN
all/DT
,/,
''/''
says/VBZ
Mr./NNP
Garth/NNP
,/,
Mayor/NNP
Koch/NNP
's/POS
media/NNS
consultant/NN
./.
``/``
The/DT
result/NN
may/MD
turn/VB
out/RB
to/TO
be/VB
a/DT
lot/RB
closer/JJR
than/IN
people/NNS
think/VBP
./.
''/''
The/DT
long-running/JJ
scandal/NN
surrounding/VBG
the/DT
1982/CD
collapse/NN
of/IN
Banco/NNP
Ambrosiano/NNP
was/VBD
reignited/VBN
by/IN
the/DT
arrest/NN
last/JJ
week/NN
of/IN
Rome/NNP
businessman/NN
Flavio/NNP
Carboni/NNP
on/IN
fraud/NN
charges/NNS
./.
Rome/NNP
magistrates/NNS
accuse/VBP
Mr./NNP
Carboni/NNP
and/CC
several/JJ
other/JJ
people/NNS
of/IN
trying/VBG
to/TO
extort/VB
1.2/CD
billion/CD
lire/NNS
$/$
880,000/CD
the/DT
Vatican/NNP
in/IN
return/NN
for/IN
documents/NNS
contained/VBN
in/IN
the/DT
briefcase/NN
of/IN
Roberto/NNP
Calvi/NNP
,/,
the/DT
Ambrosiano/NNP
chairman/NN
found/VBD
hanged/VBN
under/IN
London/NNP
's/POS
Blackfriar/NNP
's/POS
Bridge/NNP
shortly/RB
before/IN
the/DT
bank/NN
's/POS
collapse/NN
./.
Banco/NNP
Ambrosiano/NNP
,/,
which/WDT
was/VBD
Italy/NNP
's/POS
largest/JJS
private-sector/NN
bank/NN
,/,
collapsed/VBD
in/IN
1982/CD
with/IN
$/$
1.3/CD
billion/CD
of/IN
debts/NNS
./.
Most/JJS
of/IN
the/DT
money/NN
was/VBD
lent/VBN
to/TO
a/DT
series/NN
of/IN
shell/JJ
companies/NNS
in/IN
Panama/NNP
and/CC
Luxembourg/NNP
that/WDT
were/VBD
owned/VBN
,/,
directly/RB
or/CC
indirectly/RB
,/,
by/IN
the/DT
Vatican/NNP
bank/NN
./.
The/DT
Vatican/NNP
,/,
which/WDT
denies/VBZ
any/DT
wrongdoing/NN
,/,
paid/VBD
$/$
250/CD
million/CD
to/TO
the/DT
Milan/NNP
bank/NN
's/POS
creditors/NNS
as/IN
a/DT
``/``
goodwill/NN
gesture/NN
''/''
in/IN
1985/CD
./.
Italian/JJ
news/NN
reports/NNS
said/VBD
Mr./NNP
Carboni/NNP
and/CC
a/DT
colleague/NN
obtained/VBD
1.2/CD
billion/CD
lire/NNS
in/IN
checks/NNS
from/IN
a/DT
Vatican/NNP
official/NN
,/,
Pavel/NNP
Hnilica/NNP
./.
Italian/JJ
papers/NNS
speculated/VBD
the/DT
briefcase/NN
contained/VBD
papers/NNS
either/CC
exonerating/VBG
the/DT
Vatican/NNP
bank/NN
from/IN
blame/NN
in/IN
the/DT
scandal/NN
,/,
or/CC
showing/VBG
that/IN
the/DT
bank/NN
,/,
known/VBN
as/IN
the/DT
Istituto/NNP
per/FW
le/FW
Opere/NNP
di/FW
Religione/NNP
,/,
channeled/VBD
funds/NNS
to/TO
East/JJ
bloc/NN
groups/NNS
such/JJ
as/IN
Solidarity/NNP
in/IN
Poland/NNP
./.
Neither/CC
Mr./NNP
Hnilica/NNP
,/,
Mr./NNP
Carboni/NNP
nor/CC
Vatican/JJ
officials/NNS
could/MD
be/VB
reached/VBN
for/IN
comment/NN
over/IN
the/DT
weekend/NN
./.
This/DT
business/NN
trust/NN
company/NN
said/VBD
its/PRP$
board/NN
elected/VBD
Kieran/NNP
E./NNP
Burke/NNP
,/,
a/DT
consultant/NN
to/TO
Drexel/NNP
Burnham/NNP
Lambert/NNP
Group/NNP
Inc./NNP
,/,
as/IN
chief/JJ
executive/NN
officer/NN
,/,
a/DT
new/JJ
post/NN
,/,
and/CC
as/IN
president/NN
./.
Mr./NNP
Burke/NNP
succeeds/VBZ
Richard/NNP
D./NNP
Manley/NNP
,/,
who/WP
will/MD
remain/VB
as/IN
a/DT
consultant/NN
to/TO
the/DT
company/NN
./.
Both/DT
men/NNS
were/VBD
unavailable/JJ
to/TO
comment/VB
./.
The/DT
company/NN
also/RB
named/VBN
Michael/NNP
E./NNP
Gellert/NNP
,/,
a/DT
director/NN
and/CC
a/DT
major/JJ
shareholder/NN
,/,
to/TO
fill/VB
the/DT
vacant/JJ
seat/NN
of/IN
chairman/NN
./.
Britain/NNP
's/POS
Serious/NNP
Fraud/NNP
Office/NNP
said/VBD
it/PRP
will/MD
investigate/VB
the/DT
circumstances/NNS
surrounding/VBG
alleged/JJ
phantom/JJ
contracts/NNS
at/IN
Ferranti/NNP
International/NNP
Signal/NNP
PLC/NNP
's/POS
International/NNP
Signal/NNP
&/CC
Control/NNP
unit/NN
./.
The/DT
investigation/NN
,/,
which/WDT
will/MD
be/VB
coordinated/VBN
with/IN
one/NN
already/RB
under/IN
way/NN
in/IN
the/DT
U.S./NNP
,/,
follows/VBZ
the/DT
discovery/NN
of/IN
what/WP
Ferranti/NNP
has/VBZ
called/VBN
a/DT
``/``
serious/JJ
''/''
fraud/NN
involving/VBG
its/PRP$
U.S./NNP
subsidiary/NN
./.
International/NNP
Signal/NNP
&/CC
Control/NNP
,/,
Lancaster/NNP
,/,
Pa./NNP
,/,
a/DT
defense-equipment/JJ
manufacturer/NN
,/,
was/VBD
bought/VBN
by/IN
Ferranti/NNP
in/IN
1987/CD
for/IN
#/#
420/CD
million/CD
$/$
670.3/CD
million/CD
Ferranti/NNP
has/VBZ
said/VBN
that/IN
it/PRP
would/MD
be/VB
forced/VBN
to/TO
write/VB
off/RP
#/#
185/CD
million/CD
against/IN
the/DT
phantom/JJ
contracts/NNS
,/,
reducing/VBG
its/PRP$
net/JJ
asset/NN
value/NN
by/IN
more/JJR
than/IN
half/NN
./.
The/DT
Serious/NNP
Fraud/NNP
Office/NNP
,/,
a/DT
division/NN
of/IN
London/NNP
's/POS
Metropolitan/NNP
Police/NNP
responsible/JJ
for/IN
investigating/VBG
financial/JJ
crimes/NNS
,/,
said/VBD
its/PRP$
work/NN
would/MD
take/VB
in/RP
``/``
allegations/NNS
of/IN
fraud/NN
prior/JJ
to/TO
,/,
surrounding/JJ
and/CC
subsequent/JJ
to/TO
the/DT
merger/NN
./.
''/''
Ferranti/NNP
said/VBD
that/IN
it/PRP
welcomes/VBZ
the/DT
investigation/NN
and/CC
that/IN
it/PRP
will/MD
``/``
cooperate/VB
fully/RB
./.
''/''
Derek/NNP
Alun-Jones/NNP
,/,
Ferranti/NNP
's/POS
chairman/NN
,/,
has/VBZ
said/VBN
he/PRP
hoped/VBD
to/TO
pursue/VB
legal/JJ
action/NN
against/IN
those/DT
responsible/JJ
./.
The/DT
British/JJ
defense/NN
electronics/NNS
group/NN
has/VBZ
said/VBD
it/PRP
will/MD
sell/VB
#/#
100/CD
million/CD
in/IN
assets/NNS
and/CC
may/MD
seek/VB
a/DT
merger/NN
to/TO
strengthen/VB
itself/PRP
in/IN
the/DT
wake/NN
of/IN
its/PRP$
troubles/NNS
./.
Chicago/NNP
businessmen/NNS
Bertram/NNP
M./NNP
Lee/NNP
and/CC
Peter/NNP
Bynoe/NNP
signed/VBD
a/DT
new/JJ
agreement/NN
to/TO
purchase/VB
the/DT
Denver/NNP
Nuggets/NNPS
basketball/NN
team/NN
,/,
but/CC
not/RB
as/IN
principal/JJ
owners/NNS
./.
On/IN
Saturday/NNP
,/,
the/DT
partners/NNS
said/VBD
the/DT
team/NN
would/MD
be/VB
purchased/VBN
for/IN
$/$
54/CD
million/CD
by/IN
a/DT
new/JJ
group/NN
including/VBG
Comsat/NNP
Video/NNP
Enterprises/NNPS
Inc./NNP
,/,
a/DT
unit/NN
of/IN
Communications/NNPS
Satellite/NNP
Corp./NNP
based/VBN
here/RB
./.
Comsat/NNP
Video/NNP
will/MD
pay/VB
$/$
17/CD
million/CD
for/IN
a/DT
62.5/CD
%/NN
interest/NN
,/,
with/IN
Messrs./NNPS
Lee/NNP
and/CC
Bynoe/NNP
putting/VBG
up/RP
$/$
8/CD
million/CD
for/IN
a/DT
37.5/CD
%/NN
stake/NN
in/IN
the/DT
team/NN
./.
Under/IN
terms/NNS
of/IN
the/DT
sale/NN
,/,
Nuggets/NNPS
owner/NN
Sidney/NNP
Shlenker/NNP
could/MD
receive/VB
up/IN
to/TO
$/$
11/CD
million/CD
in/IN
additional/JJ
payments/NNS
from/IN
the/DT
franchise/NN
's/POS
future/JJ
earnings/NNS
./.
Messrs./NNP
Lee/NNP
and/CC
Bynoe/NNP
last/JJ
July/NNP
announced/VBD
a/DT
deal/NN
that/WDT
would/MD
have/VB
made/VBN
them/PRP
the/DT
first/JJ
black/JJ
principal/JJ
owners/NNS
of/IN
a/DT
major/JJ
professional/JJ
sports/NNS
franchise/NN
./.
But/CC
the/DT
deal/NN
fell/VBD
apart/RB
last/JJ
week/NN
for/IN
lack/NN
of/IN
financing/NN
./.
Comsat/NNP
Video/NNP
is/VBZ
headed/VBN
by/IN
Robert/NNP
Wussler/NNP
,/,
who/WP
resigned/VBD
his/PRP$
No./NN
2/CD
executive/NN
post/NN
with/IN
Turner/NNP
Broadcasting/NNP
System/NNP
Inc./NNP
just/RB
two/CD
weeks/NNS
ago/RB
to/TO
take/VB
the/DT
Comsat/NNP
position/NN
./.
Comsat/NNP
Video/NNP
,/,
which/WDT
distributes/VBZ
pay-per-view/JJ
programs/NNS
to/TO
hotel/NN
rooms/NNS
,/,
plans/VBZ
to/TO
add/VB
Nuggets/NNPS
games/NNS
to/TO
their/PRP$
offerings/NNS
,/,
as/IN
Mr./NNP
Turner/NNP
did/VBD
successfully/RB
with/IN
his/PRP$
Atlanta/NNP
Hawks/NNPS
and/CC
Braves/NNPS
sports/NNS
teams/NNS
./.
Messrs./NNPS
Lee/NNP
and/CC
Bynoe/NNP
will/MD
manage/VB
the/DT
Nuggets/NNPS
'/POS
day-today/JJ
affairs/NNS
./.
Royal/NNP
Business/NNP
Group/NNP
Inc./NNP
said/VBD
it/PRP
filed/VBD
suit/NN
in/IN
federal/JJ
court/NN
here/RB
charging/VBG
Realist/NNP
Inc./NNP
and/CC
its/PRP$
directors/NNS
with/IN
violating/VBG
federal/JJ
securities/NNS
laws/NNS
``/``
by/IN
engaging/VBG
in/IN
a/DT
scheme/NN
to/TO
prevent/VB
''/''
Royal/NNP
from/IN
acquiring/VBG
Realist/NNP
./.
Royal/NNP
,/,
which/WDT
makes/VBZ
and/CC
distributes/VBZ
business/NN
forms/NNS
,/,
owns/VBZ
an/DT
8/CD
%/NN
stake/NN
in/IN
Realist/NNP
./.
Royal/NNP
contends/VBZ
that/IN
Realist/NNP
failed/VBD
to/TO
disclose/VB
material/NN
information/NN
,/,
including/VBG
Realist/NNP
's/POS
negotiations/NNS
to/TO
acquire/VB
Ammann/NNP
Laser/NNP
Technik/NNP
AG/NNP
,/,
to/TO
stockholders/NNS
prior/RB
to/TO
Realist/NNP
's/POS
June/NNP
6/CD
annual/JJ
meeting/NN
./.
Royal/NNP
's/POS
suit/NN
contends/VBZ
that/IN
the/DT
Ammann/NNP
acquisition/NN
was/VBD
``/``
designed/VBN
to/TO
entrench/VB
management/NN
and/CC
thwart/VB
Royal/NNP
's/POS
offer/NN
./.
''/''
Royal/NNP
withdrew/VBD
its/PRP$
offer/NN
to/TO
buy/VB
Realist/NNP
,/,
a/DT
maker/NN
of/IN
optical/JJ
and/CC
electronic/JJ
products/NNS
based/VBN
in/IN
Menomonee/NNP
Falls/NNPS
,/,
Wis./NNP
,/,
for/IN
$/$
14.06/CD
a/DT
share/NN
in/IN
July/NNP
after/IN
Realist/NNP
disclosed/VBD
the/DT
Ammann/NNP
purchase/NN
./.
The/DT
suit/NN
seeks/VBZ
``/``
in/IN
excess/NN
of/IN
$/$
350,000/CD
in/IN
damages/NNS
./.
''/''
A/DT
Realist/NNP
official/NN
said/VBD
the/DT
company/NN
had/VBD
n't/RB
yet/RB
received/VBN
the/DT
full/JJ
complaint/NN
and/CC
would/MD
n't/RB
have/VB
a/DT
response/NN
until/IN
it/PRP
had/VBD
an/DT
opportunity/NN
to/TO
review/VB
it/PRP
./.
Winnebago/NNP
Industries/NNPS
Inc./NNP
,/,
battered/VBN
by/IN
a/DT
deepening/VBG
slowdown/NN
in/IN
recreational/JJ
vehicle/NN
industry/NN
sales/NNS
,/,
reported/VBD
a/DT
widened/VBN
fourth-quarter/JJ
loss/NN
and/CC
slashed/VBD
its/PRP$
dividend/NN
in/IN
half/NN
./.
The/DT
Forest/NNP
City/NNP
,/,
Iowa/NNP
,/,
maker/NN
of/IN
motor/NN
homes/NNS
said/VBD
it/PRP
had/VBD
a/DT
loss/NN
of/IN
$/$
11.3/CD
million/CD
,/,
or/CC
46/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
quarter/NN
ended/VBN
Aug./NNP
26/CD
./.
A/DT
year/NN
earlier/RB
,/,
the/DT
company/NN
had/VBD
a/DT
deficit/NN
of/IN
$/$
1.5/CD
million/CD
,/,
or/CC
six/CD
cents/NNS
a/DT
share/NN
./.
The/DT
cut/NN
in/IN
the/DT
dividend/NN
to/TO
10/CD
cents/NNS
a/DT
share/NN
semiannually/RB
,/,
from/IN
20/CD
cents/NNS
,/,
``/``
would/MD
indicate/VB
to/TO
me/PRP
they/PRP
do/VBP
n't/RB
see/VB
the/DT
problems/NNS
being/VBG
fixed/VBN
real/RB
quick/RB
,/,
''/''
said/VBD
Frank/NNP
Rolfes/NNP
,/,
an/DT
analyst/NN
at/IN
Dain/NNP
Bosworth/NNP
Inc./NNP
in/IN
Minneapolis/NNP
./.
Indeed/RB
,/,
Winnebago/NNP
said/VBD
it/PRP
started/VBD
``/``
several/JJ
promotional/JJ
programs/NNS
''/''
to/TO
spur/VB
retail/JJ
sales/NNS
in/IN
the/DT
fall/NN
and/CC
winter/NN
./.
The/DT
year/NN
was/VBD
already/RB
shaping/VBG
up/RB
as/IN
a/DT
difficult/JJ
one/NN
for/IN
the/DT
recreational/JJ
vehicle/NN
industry/NN
,/,
which/WDT
makes/VBZ
products/NNS
such/JJ
as/IN
motor/NN
homes/NNS
,/,
travel/NN
trailers/NNS
,/,
folding/JJ
campers/NNS
and/CC
van/NN
conversions/NNS
./.
With/IN
the/DT
exception/NN
of/IN
van/NN
conversions/NNS
,/,
the/DT
industry/NN
has/VBZ
seen/VBN
a/DT
decline/NN
from/IN
1988/CD
's/POS
robust/JJ
sales/NNS
./.
But/CC
the/DT
rate/NN
of/IN
the/DT
decline/NN
snowballed/VBD
in/IN
August/NNP
,/,
with/IN
unit/NN
sales/NNS
to/TO
dealers/NNS
for/IN
the/DT
month/NN
down/RB
10.5/CD
%/NN
from/IN
a/DT
year/NN
earlier/RB
,/,
according/VBG
to/TO
the/DT
Recreation/NNP
Vehicle/NNP
Industry/NNP
Association/NNP
./.
At/IN
Winnebago/NNP
,/,
sales/NNS
for/IN
the/DT
quarter/NN
fell/VBD
6/CD
%/NN
to/TO
$/$
89.5/CD
million/CD
from/IN
$/$
95.4/CD
million/CD
a/DT
year/NN
earlier/RB
./.
The/DT
company/NN
attributed/VBD
the/DT
decline/NN
to/TO
consumers/NNS
'/POS
concern/NN
over/IN
interest/NN
rates/NNS
and/CC
gas/NN
prices/NNS
--/:
two/CD
key/NN
expenses/NNS
for/IN
RV/NN
buyers/NNS
./.
``/``
It/PRP
's/VBZ
a/DT
large-ticket/JJ
discretionary/JJ
purchase/NN
,/,
''/''
said/VBD
Robert/NNP
Curran/NNP
,/,
who/WP
follows/VBZ
the/DT
industry/NN
for/IN
Merrill/NNP
Lynch/NNP
&/CC
Co/NNP
./.
``/``
So/RB
when/WRB
there/EX
's/VBZ
talk/NN
and/CC
concern/NN
about/IN
the/DT
economy/NN
,/,
it/PRP
's/VBZ
not/RB
unreasonable/JJ
for/IN
a/DT
portion/NN
of/IN
the/DT
buying/VBG
public/NN
to/TO
defer/VB
purchases/NNS
./.
''/''
Mr./NNP
Curran/NNP
expects/VBZ
industry/NN
RV/NN
sales/NNS
for/IN
all/DT
of/IN
1989/CD
to/TO
fall/VB
about/IN
5/CD
%/NN
from/IN
1988/CD
,/,
when/WRB
sales/NNS
of/IN
427,300/CD
units/NNS
were/VBD
the/DT
highest/JJS
since/IN
1978/CD
./.
And/CC
he/PRP
said/VBD
the/DT
weakness/NN
could/MD
continue/VB
in/IN
the/DT
first/JJ
half/NN
of/IN
next/JJ
year/NN
./.
But/CC
he/PRP
said/VBD
the/DT
industry/NN
has/VBZ
``/``
a/DT
good/JJ
decade/NN
ahead/RB
,/,
''/''
particularly/RB
if/IN
aging/VBG
baby/NN
boomers/NNS
fulfill/VBP
the/DT
industry/NN
's/POS
dreams/NNS
by/IN
buying/VBG
RVs/NNS
./.
Winnebago/NNP
was/VBD
hit/VBN
especially/RB
hard/RB
in/IN
the/DT
latest/JJS
downturn/NN
because/IN
unit/NN
sales/NNS
in/IN
its/PRP$
bread-and-butter/JJ
motor/NN
home/NN
business/NN
tumbled/VBD
25/CD
%/NN
industrywide/RB
in/IN
August/NNP
,/,
and/CC
10.4/CD
%/NN
in/IN
the/DT
first/JJ
eight/CD
months/NNS
of/IN
the/DT
year/NN
./.
The/DT
company/NN
said/VBD
it/PRP
also/RB
suffered/VBD
in/IN
the/DT
quarter/NN
from/IN
incentive/NN
programs/NNS
,/,
losses/NNS
from/IN
discontinuing/VBG
a/DT
motor/NN
home/NN
line/NN
and/CC
costs/NNS
of/IN
developing/VBG
a/DT
new/JJ
commercial/JJ
vehicle/NN
,/,
among/IN
other/JJ
things/NNS
./.
The/DT
news/NN
sent/VBD
Winnebago/NNP
stock/NN
falling/VBG
62.5/CD
cents/NNS
,/,
to/TO
$/$
5.25/CD
,/,
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
-/:
a/DT
52-week/JJ
low/NN
./.
The/DT
dividend/NN
cut/NN
will/MD
prove/VB
most/RBS
costly/JJ
for/IN
John/NNP
K./NNP
Hanson/NNP
,/,
Winnebago/NNP
's/POS
founder/NN
and/CC
chairman/NN
./.
Based/VBN
on/IN
his/PRP$
control/NN
of/IN
about/IN
45/CD
%/NN
of/IN
Winnebago/NNP
's/POS
24.7/CD
million/CD
shares/NNS
,/,
his/PRP$
annual/JJ
dividend/NN
income/NN
would/MD
be/VB
cut/VBN
to/TO
about/IN
$/$
2.2/CD
million/CD
from/IN
$/$
4.4/CD
million/CD
./.
For/IN
the/DT
year/NN
,/,
Winnebago/NNP
had/VBD
a/DT
loss/NN
of/IN
$/$
4.7/CD
million/CD
,/,
or/CC
19/CD
cents/NNS
a/DT
share/NN
,/,
following/VBG
profit/NN
of/IN
$/$
2.7/CD
million/CD
,/,
or/CC
11/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
./.
Sales/NNS
rose/VBD
2/CD
%/NN
to/TO
$/$
437.5/CD
million/CD
from/IN
$/$
430.3/CD
million/CD
./.
Bullish/JJ
bond/NN
market/NN
sentiment/NN
is/VBZ
on/IN
the/DT
rise/NN
again/RB
./.
As/IN
the/DT
government/NN
prepares/VBZ
to/TO
release/VB
the/DT
next/JJ
batch/NN
of/IN
economic/JJ
reports/NNS
,/,
the/DT
consensus/NN
among/IN
economists/NNS
and/CC
money/NN
managers/NNS
is/VBZ
that/IN
the/DT
news/NN
will/MD
be/VB
negative/JJ
./.
And/CC
that/DT
,/,
they/PRP
say/VBP
,/,
will/MD
be/VB
good/JJ
for/IN
bonds/NNS
./.
``/``
Recent/JJ
data/NNS
have/VBP
indicated/VBN
somewhat/RB
weaker/JJR
economic/JJ
activity/NN
,/,
''/''
said/VBD
Elliott/NNP
Platt/NNP
,/,
director/NN
of/IN
economic/JJ
research/NN
at/IN
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
Securities/NNPS
./.
Mr./NNP
Platt/NNP
is/VBZ
advising/VBG
clients/NNS
that/IN
``/``
the/DT
near-term/JJ
direction/NN
of/IN
bond/NN
prices/NNS
is/VBZ
likely/JJ
to/TO
remain/VB
upward/JJ
./.
''/''
Analysts/NNS
insist/VBP
that/IN
even/RB
without/IN
help/NN
from/IN
a/DT
shaky/JJ
stock/NN
market/NN
,/,
which/WDT
provided/VBD
a/DT
temporary/JJ
boost/NN
for/IN
bonds/NNS
during/IN
the/DT
Oct./NNP
13/CD
stock/NN
market/NN
plunge/NN
,/,
bond/NN
prices/NNS
will/MD
start/VB
to/TO
climb/VB
on/IN
the/DT
prospects/NNS
that/IN
the/DT
Federal/NNP
Reserve/NNP
will/MD
allow/VB
interest/NN
rates/NNS
to/TO
move/VB
lower/RBR
in/IN
the/DT
coming/VBG
weeks/NNS
./.
That/DT
would/MD
be/VB
comforting/JJ
to/TO
fixed-income/JJ
investors/NNS
,/,
many/DT
of/IN
whom/WP
were/VBD
badly/RB
burned/JJ
in/IN
the/DT
third/JJ
quarter/NN
by/IN
incorrectly/RB
assuming/VBG
that/IN
the/DT
Fed/NNP
would/MD
ease/VB
./.
Investors/NNS
rushed/VBD
to/TO
buy/VB
bonds/NNS
during/IN
the/DT
summer/NN
as/IN
prices/NNS
soared/VBD
on/IN
speculation/NN
that/IN
interest/NN
rates/NNS
would/MD
continue/VB
to/TO
fall/VB
./.
But/CC
when/WRB
it/PRP
became/VBD
clear/JJ
that/IN
rates/NNS
had/VBD
stabilized/VBN
and/CC
that/IN
the/DT
Fed/NNP
's/POS
credit-easing/JJ
policy/NN
was/VBD
on/IN
hold/NN
,/,
bond/NN
yields/NNS
jumped/VBD
and/CC
prices/NNS
tumbled/VBD
./.
Long-term/JJ
bonds/NNS
have/VBP
performed/VBN
erratically/RB
this/DT
year/NN
./.
For/IN
example/NN
,/,
a/DT
group/NN
of/IN
long-term/JJ
Treasury/NNP
bonds/NNS
tracked/VBN
by/IN
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
produced/VBD
a/DT
total/JJ
return/NN
of/IN
1/CD
%/NN
in/IN
the/DT
first/JJ
quarter/NN
,/,
12.45/CD
%/NN
in/IN
the/DT
second/JJ
quarter/NN
and/CC
-0.06/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
./.
Total/JJ
return/NN
is/VBZ
price/NN
changes/NNS
plus/CC
interest/NN
income/NN
./.
Now/RB
some/DT
investment/NN
analysts/NNS
insist/VBP
that/IN
the/DT
economic/JJ
climate/NN
has/VBZ
turned/VBN
cold/JJ
and/CC
gloomy/JJ
,/,
and/CC
they/PRP
are/VBP
urging/VBG
clients/NNS
to/TO
buy/VB
bonds/NNS
before/IN
the/DT
rally/NN
begins/VBZ
./.
Among/IN
other/JJ
things/NNS
,/,
economists/NNS
note/VBP
that/IN
consumer/NN
spending/NN
is/VBZ
slowing/VBG
,/,
corporate/JJ
profit/NN
margins/NNS
are/VBP
being/VBG
squeezed/VBN
,/,
business/NN
confidence/NN
is/VBZ
slipping/VBG
and/CC
construction/NN
and/CC
manufacturing/NN
industries/NNS
are/VBP
depressed/JJ
./.
At/IN
the/DT
same/JJ
time/NN
,/,
last/JJ
week/NN
's/POS
consumer/NN
price/NN
index/NN
showed/VBD
that/DT
inflation/NN
is/VBZ
moderating/VBG
./.
Add/VB
it/PRP
all/DT
up/RP
and/CC
it/PRP
means/VBZ
``/``
that/IN
the/DT
Fed/NNP
has/VBZ
a/DT
little/JJ
leeway/NN
to/TO
ease/VB
its/PRP$
credit/NN
policy/NN
stance/NN
without/IN
the/DT
risk/NN
of/IN
rekindling/VBG
inflation/NN
,/,
''/''
said/VBD
Norman/NNP
Robertson/NNP
,/,
chief/JJ
economist/NN
at/IN
Mellon/NNP
Bank/NNP
Corp./NNP
,/,
Pittsburgh/NNP
./.
``/``
I/PRP
think/VBP
we/PRP
will/MD
see/VB
a/DT
federal/JJ
funds/NNS
rate/NN
of/IN
close/JJ
to/TO
8/CD
1\/2/CD
%/NN
in/IN
the/DT
next/JJ
two/CD
weeks/NNS
and/CC
8/CD
%/NN
by/IN
year/NN
end/NN
./.
''/''
The/DT
federal/JJ
funds/NNS
rate/NN
,/,
which/WDT
banks/NNS
charge/VBP
each/DT
other/JJ
on/IN
overnight/JJ
loans/NNS
,/,
is/VBZ
considered/VBN
an/DT
early/JJ
signal/NN
of/IN
changes/NNS
in/IN
the/DT
Fed/NNP
's/POS
credit/NN
policy/NN
./.
Economists/NNS
generally/RB
agree/VBP
that/IN
the/DT
rate/NN
was/VBD
lowered/VBN
by/IN
the/DT
Fed/NNP
from/IN
around/IN
9/CD
%/NN
,/,
where/WRB
it/PRP
had/VBD
been/VBN
since/IN
July/NNP
,/,
to/TO
about/IN
8/CD
3\/4/CD
%/NN
in/IN
early/JJ
October/NNP
on/IN
the/DT
heels/NNS
of/IN
a/DT
weak/JJ
employment/NN
report/NN
./.
Although/IN
the/DT
rate/NN
briefly/RB
drifted/VBD
even/RB
lower/RBR
following/VBG
the/DT
stock/NN
market/NN
sell-off/NN
that/WDT
occurred/VBD
Oct./NNP
13/CD
,/,
it/PRP
ended/VBD
Friday/NNP
at/IN
about/IN
8/CD
11\/16/CD
%/NN
./.
James/NNP
Kochan/NNP
,/,
chief/JJ
fixed-income/JJ
strategist/NN
at/IN
Merrill/NNP
Lynch/NNP
,/,
is/VBZ
touting/VBG
shorter-term/JJR
securities/NNS
,/,
which/WDT
he/PRP
says/VBZ
should/MD
benefit/VB
more/RBR
quickly/RB
than/IN
longer-term/JJR
bonds/NNS
as/IN
interest/NN
rates/NNS
fall/VBP
./.
``/``
Given/VBN
our/PRP$
forecast/NN
for/IN
lower/JJR
rates/NNS
,/,
purchases/NNS
made/VBN
now/RB
should/MD
prove/VB
quite/RB
rewarding/JJ
before/IN
year/NN
end/NN
,/,
''/''
he/PRP
said/VBD
./.
Mr./NNP
Kochan/NNP
also/RB
likes/VBZ
long-term/JJ
,/,
investment-grade/JJ
corporate/JJ
bonds/NNS
and/CC
long-term/JJ
Treasurys/NNPS
./.
He/PRP
says/VBZ
these/DT
bonds/NNS
should/MD
appreciate/VB
in/IN
value/NN
as/IN
some/DT
investors/NNS
,/,
reacting/VBG
to/TO
the/DT
recent/JJ
turmoil/NN
in/IN
the/DT
stock/NN
and/CC
high-yield/JJ
junk/NN
bond/NN
markets/NNS
,/,
seek/VBP
safer/JJR
securities/NNS
./.
``/``
If/IN
the/DT
Tennessee/NNP
Valley/NNP
Authority/NNP
sale/NN
is/VBZ
any/DT
guide/NN
,/,
there/EX
appears/VBZ
to/TO
be/VB
good/JJ
demand/NN
for/IN
top-quality/JJ
,/,
long-term/JJ
paper/NN
from/IN
both/DT
domestic/JJ
and/CC
overseas/JJ
accounts/NNS
,/,
''/''
he/PRP
said/VBD
./.
TVA/NNP
,/,
in/IN
its/PRP$
first/JJ
public/JJ
debt/NN
offering/NN
in/IN
15/CD
years/NNS
,/,
sold/VBD
$/$
4/CD
billion/CD
of/IN
long-term/JJ
and/CC
intermediate-term/JJ
securities/NNS
last/JJ
week/NN
./.
Strong/JJ
investor/NN
demand/NN
prompted/VBD
the/DT
utility/NN
to/TO
boost/VB
the/DT
size/NN
of/IN
the/DT
issue/NN
from/IN
$/$
3/CD
billion/CD
./.
TVA/NNP
,/,
which/WDT
operates/VBZ
one/CD
of/IN
the/DT
nation/NN
's/POS
largest/JJS
electric/JJ
power/NN
systems/NNS
,/,
is/VBZ
a/DT
corporation/NN
owned/VBN
by/IN
the/DT
federal/JJ
government/NN
./.
But/CC
persuading/VBG
investors/NNS
to/TO
buy/VB
bonds/NNS
may/MD
be/VB
especially/RB
tough/JJ
this/DT
week/NN
,/,
when/WRB
the/DT
U.S./NNP
government/NN
will/MD
auction/VB
more/JJR
than/IN
$/$
30/CD
billion/CD
of/IN
new/JJ
securities/NNS
./.
Today/NN
,/,
the/DT
Treasury/NNP
Department/NNP
will/MD
sell/VB
$/$
15.6/CD
billion/CD
of/IN
three-month/JJ
and/CC
six-month/JJ
bills/NNS
at/IN
the/DT
regular/JJ
weekly/JJ
auction/NN
./.
Tomorrow/NN
,/,
the/DT
Treasury/NNP
will/MD
sell/VB
$/$
10/CD
billion/CD
of/IN
two-year/JJ
notes/NNS
./.
Resolution/NNP
Funding/NNP
Corp./NNP
,/,
known/VBN
as/IN
Refcorp/NNP
,/,
a/DT
division/NN
of/IN
a/DT
new/JJ
government/NN
agency/NN
created/VBN
to/TO
bail/VB
out/RP
the/DT
nation/NN
's/POS
troubled/JJ
savings/NNS
and/CC
loan/NN
associations/NNS
,/,
will/MD
hold/VB
its/PRP$
first/JJ
bond/NN
auction/NN
Wednesday/NNP
,/,
when/WRB
it/PRP
will/MD
sell/VB
$/$
4.5/CD
billion/CD
of/IN
30-year/JJ
bonds/NNS
./.
All/DT
of/IN
this/DT
comes/VBZ
ahead/RB
of/IN
the/DT
government/NN
's/POS
big/JJ
quarterly/JJ
refunding/NN
of/IN
the/DT
federal/JJ
debt/NN
,/,
which/WDT
takes/VBZ
place/NN
sometime/RB
in/IN
November/NNP
./.
So/RB
far/RB
,/,
investors/NNS
have/VBP
n't/RB
shown/VBN
much/JJ
appetite/NN
for/IN
Refcorp/NNP
's/POS
initial/JJ
bond/NN
offering/NN
./.
Roger/NNP
Early/NNP
,/,
a/DT
portfolio/NN
manager/NN
at/IN
Federated/NNP
Investors/NNPS
Corp./NNP
,/,
said/VBD
that/IN
yields/NNS
on/IN
the/DT
so-called/JJ
bailout/NN
bonds/NNS
are/VBP
n't/RB
high/JJ
enough/RB
to/TO
attract/VB
his/PRP$
attention/NN
./.
``/``
Why/WRB
should/MD
I/PRP
bother/VB
with/IN
something/NN
that/WDT
's/VBZ
an/DT
unknown/NN
for/IN
a/DT
very/RB
small/JJ
pickup/NN
in/IN
yield/NN
?/.
''/''
he/PRP
said/VBD
./.
``/``
I/PRP
'm/VBP
not/RB
going/VBG
to/TO
jump/VB
on/IN
them/PRP
the/DT
first/JJ
day/NN
they/PRP
come/VBP
out/RB
./.
''/''
He/PRP
seems/VBZ
to/TO
be/VB
typical/JJ
of/IN
many/JJ
professional/JJ
money/NN
managers/NNS
./.
When/WRB
the/DT
size/NN
of/IN
the/DT
Refcorp/NNP
offering/NN
was/VBD
announced/VBN
last/JJ
week/NN
and/CC
when-issued/VBN

trading/NN
activity/NN
began/VBD
,/,
the/DT
bailout/NN
bonds/NNS
were/VBD
yielding/VBG
about/IN
1\/20/CD
percentage/NN
point/NN
more/JJR
than/IN
the/DT
Treasury/NNP
's/POS
benchmark/JJ
30-year/JJ
bond/NN
./.
On/IN
Friday/NNP
,/,
the/DT
yield/NN
was/VBD
quoted/VBN
at/IN
about/IN
1\/4/CD
percentage/NN
point/NN
higher/JJR
than/IN
the/DT
benchmark/JJ
bond/NN
,/,
an/DT
indication/NN
of/IN
weak/JJ
demand/NN
./.
Some/DT
economists/NNS
believe/VBP
that/IN
yields/NNS
on/IN
all/DT
Treasury/NNP
securities/NNS
may/MD
rise/VB
this/DT
week/NN
as/IN
the/DT
market/NN
struggles/VBZ
to/TO
absorb/VB
the/DT
new/JJ
supply/NN
./.
But/CC
once/RB
the/DT
new/JJ
securities/NNS
are/VBP
digested/VBN
,/,
they/PRP
expect/VBP
investors/NNS
to/TO
focus/VB
on/IN
the/DT
weak/JJ
economic/JJ
data/NNS
./.
``/``
The/DT
supply/NN
is/VBZ
not/RB
a/DT
constraint/NN
to/TO
the/DT
market/NN
,/,
''/''
said/VBD
Samuel/NNP
Kahan/NNP
,/,
chief/JJ
financial/JJ
economist/NN
at/IN
Kleinwort/NNP
Benson/NNP
Government/NNP
Securities/NNPS
Inc/NNP
./.
``/``
If/IN
one/PRP
thinks/VBZ
that/IN
rates/NNS
are/VBP
going/VBG
down/RB
,/,
you/PRP
do/VBP
n't/RB
care/VB
how/WRB
much/JJ
supply/NN
is/VBZ
coming/VBG
./.
''/''
Friday/NNP
's/POS
Market/NN
Activity/NN
Most/JJS
bond/NN
prices/NNS
fell/VBD
on/IN
concerns/NNS
about/IN
this/DT
week/NN
's/POS
new/JJ
supply/NN
and/CC
disappointment/NN
that/IN
stock/NN
prices/NNS
did/VBD
n't/RB
stage/VB
a/DT
sharp/JJ
decline/NN
./.
Junk/NN
bond/NN
prices/NNS
moved/VBD
higher/RBR
,/,
however/RB
./.
In/RBR
early/JJ
trading/NN
,/,
Treasury/NNP
bonds/NNS
were/VBD
higher/JJR
on/IN
expectations/NNS
that/IN
a/DT
surge/NN
in/IN
buying/NN
among/IN
Japanese/JJ
investors/NNS
would/MD
continue/VB
./.
Also/RB
providing/VBG
support/NN
to/TO
Treasurys/NNPS
was/VBD
hope/NN
that/IN
the/DT
stock/NN
market/NN
might/MD
see/VB
declines/NNS
because/RB
of/IN
the/DT
expiration/NN
of/IN
some/DT
stock-index/NN
futures/NNS
and/CC
options/NNS
on/IN
indexes/NNS
and/CC
individual/JJ
stocks/NNS
./.
Those/DT
hopes/NNS
were/VBD
dashed/VBN
when/WRB
the/DT
stock/NN
market/NN
put/VBD
in/RP
a/DT
relatively/RB
quiet/JJ
performance/NN
./.
Treasury/NNP
bonds/NNS
ended/VBD
with/IN
losses/NNS
of/IN
as/RB
much/JJ
as/IN
1\/4/CD
point/NN
,/,
or/CC
about/IN
$/$
2.50/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
./.
The/DT
benchmark/JJ
30-year/JJ
bond/NN
,/,
which/WDT
traded/VBN
as/RB
high/JJ
as/IN
102/CD
1\/4/CD
during/IN
the/DT
day/NN
,/,
ended/VBD
at/IN
101/CD
17\/32/CD
./.
The/DT
yield/NN
on/IN
the/DT
benchmark/JJ
bond/NN
rose/VBD
slightly/RB
to/TO
7.98/CD
%/NN
from/IN
7.96/CD
%/NN
./.
In/IN
the/DT
corporate/JJ
bond/NN
market/NN
,/,
traders/NNS
said/VBD
the/DT
new-issue/JJ
market/NN
for/IN
junk/NN
bonds/NNS
is/VBZ
likely/JJ
to/TO
pick/VB
up/RB
following/VBG
Chicago/NNP
&/CC
North/NNP
Western/NNP
Acquisition/NNP
Corp./NNP
's/POS
$/$
475/CD
million/CD
junk/NN
bond/NN
offering/NN
Friday/NNP
./.
Today/NN
,/,
for/IN
example/NN
,/,
underwriters/NNS
at/IN
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
said/VBD
they/PRP
expect/VBP
to/TO
price/VB
a/DT
$/$
150/CD
million/CD
,/,
12-year/JJ
senior/JJ
subordinated/JJ
debenture/NN
offering/NN
by/IN
Imo/NNP
Industries/NNPS
Inc/NNP
./.
Traders/NNS
expect/VBP
the/DT
issue/NN
to/TO
be/VB
priced/VBN
to/TO
yield/VB
12/CD
%/NN
./.
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
said/VBD
that/IN
a/DT
$/$
150/CD
million/CD
senior/JJ
subordinated/JJ
discount/NN
debenture/NN
issue/NN
by/IN
R.P./NNP
Scherer/NNP
Drugs/NNPS
is/VBZ
expected/VBN
by/IN
the/DT
end/NN
of/IN
the/DT
month/NN
./.
However/RB
,/,
despite/IN
the/DT
big/JJ
new-issue/JJ
calendar/NN
,/,
many/JJ
junk/NN
bond/NN
investors/NNS
and/CC
analysts/NNS
are/VBP
skeptical/JJ
the/DT
deals/NNS
will/MD
get/VB
done/VBN
./.
``/``
There/EX
are/VBP
about/IN
a/DT
dozen/NN
more/JJR
deals/NNS
coming/VBG
,/,
''/''
said/VBD
Michael/NNP
McNamara/NNP
,/,
director/NN
of/IN
fixed-income/JJ
research/NN
at/IN
Kemper/NNP
Financial/NNP
Services/NNPS
Inc/NNP
./.
``/``
If/IN
they/PRP
had/VBD
this/DT
much/JJ
trouble/NN
with/IN
Chicago/NNP
&/CC
North/NNP
Western/NNP
,/,
they/PRP
are/VBP
going/VBG
to/TO
have/VB
an/DT
awful/JJ
time/NN
with/IN
the/DT
rest/NN
./.
''/''
Last/JJ
week/NN
,/,
underwriters/NNS
were/VBD
forced/VBN
to/TO
postpone/VB
three/CD
junk/NN
bond/NN
deals/NNS
because/IN
of/IN
recent/JJ
weakness/NN
in/IN
the/DT
market/NN
./.
And/CC
pressure/NN
by/IN
big/JJ
investors/NNS
forced/VBD
Donaldson/NNP
Lufkin/NNP
&/CC
Jenrette/NNP
Securities/NNPS
Corp./NNP
to/TO
sweeten/VB
Chicago/NNP
&/CC
North/NNP
Western/NNP
's/POS
$/$
475/CD
million/CD
junk/NN
bond/NN
offering/NN
./.
After/IN
hours/NNS
of/IN
negotiating/NN
that/IN
stretched/VBN
late/RB
into/IN
Thursday/NNP
night/NN
,/,
underwriters/NNS
priced/VBD
the/DT
12-year/JJ
issue/NN
of/IN
resettable/JJ
senior/JJ
subordinated/JJ
debentures/NNS
at/IN
par/NN
to/TO
yield/VB
14.75/CD
%/NN
,/,
higher/JJR
than/IN
the/DT
14.5/CD
%/NN
that/WDT
had/VBD
been/VBN
expected/VBN
./.
The/DT
coupon/NN
on/IN
the/DT
issue/NN
will/MD
be/VB
reset/VB
in/IN
one/CD
year/NN
at/IN
a/DT
rate/NN
that/WDT
will/MD
give/VB
the/DT
issue/NN
a/DT
market/NN
value/NN
of/IN
101/CD
./.
However/RB
,/,
the/DT
maximum/NN
coupon/NN
rate/NN
on/IN
the/DT
issue/NN
when/WRB
it/PRP
is/VBZ
reset/JJ
is/VBZ
15.50/CD
%/NN
./.
Debenture/NN
holders/NNS
also/RB
will/MD
receive/VB
the/DT
equivalent/NN
of/IN
10/CD
%/NN
of/IN
the/DT
common/JJ
stock/NN
in/IN
Chicago/NNP
&/CC
North/NNP
Western/NNP
's/POS
parent/NN
company/NN
./.
``/``
The/DT
coupon/NN
was/VBD
raised/VBN
to/TO
induce/VB
some/DT
of/IN
the/DT
big/JJ
players/NNS
on/IN
the/DT
fence/NN
to/TO
come/VB
in/RB
,/,
''/''
said/VBD
a/DT
spokesman/NN
for/IN
Donaldson/NNP
./.
``/``
We/PRP
put/VBP
a/DT
price/NN
on/IN
the/DT
deal/NN
that/WDT
the/DT
market/NN
required/VBD
to/TO
get/VB
it/PRP
done/VBN
./.
''/''
The/DT
spokesman/NN
said/VBD
the/DT
issue/NN
was/VBD
sold/VBN
out/RB
and/CC
met/VBD
with/IN
strong/JJ
interest/NN
abroad/RB
,/,
particularly/RB
from/IN
Japanese/JJ
investors/NNS
./.
In/IN
the/DT
secondary/JJ
,/,
or/CC
resale/NN
,/,
market/NN
,/,
junk/NN
bonds/NNS
closed/VBD
1\/2/CD
point/NN
higher/RBR
,/,
while/IN
investment-grade/JJ
corporate/JJ
bonds/NNS
fell/VBD
1\/8/CD
to/TO
1\/4/CD
point/NN
./.
Sotheby/NNP
's/POS
Inc./NNP
's/POS
gamble/NN
in/IN
the/DT
art-dealing/JJ
business/NN
appears/VBZ
to/TO
have/VB
paid/VBN
off/RB
./.
The/DT
New/NNP
York/NNP
arm/NN
of/IN
the/DT
London-based/JJ
auction/NN
house/NN
auctioned/VBD
off/RP
the/DT
estate/NN
of/IN
John/NNP
T./NNP
Dorrance/NNP
Jr./NNP
,/,
the/DT
Campbell/NNP
's/POS
Soup/NNP
Co./NNP
heir/NN
,/,
for/IN
$/$
131/CD
million/CD
last/JJ
week/NN
,/,
a/DT
record/NN
for/IN
a/DT
single-owner/JJ
art/NN
collection/NN
./.
That/DT
total/NN
was/VBD
below/IN
the/DT
$/$
140/CD
million/CD
the/DT
auction/NN
house/NN
estimated/VBD
the/DT
collection/NN
might/MD
sell/VB
for/IN
,/,
but/CC
was/VBD
enough/RB
to/TO
ensure/VB
that/IN
an/DT
unprecedented/JJ
financial/JJ
arrangement/NN
Sotheby/NNP
's/POS
had/VBD
made/VBN
with/IN
the/DT
Dorrance/NNP
family/NN
proved/VBD
profitable/JJ
to/TO
the/DT
auction/NN
house/NN
./.
Sotheby/NNP
's/VBZ
provided/VBD
the/DT
Dorrance/NNP
family/NN
a/DT
guarantee/NN
of/IN
at/IN
least/JJS
$/$
100/CD
million/CD
,/,
and/CC
as/RB
much/JJ
as/IN
$/$
120/CD
million/CD
,/,
to/TO
obtain/VB
the/DT
collection/NN
,/,
people/NNS
familiar/JJ
with/IN
the/DT
transaction/NN
said/VBD
,/,
thus/RB
taking/VBG
a/DT
greater/JJR
than/IN
usual/JJ
financial/JJ
interest/NN
in/IN
the/DT
property/NN
to/TO
be/VB
sold/VBN
./.
The/DT
Dorrance/NNP
estate/NN
,/,
auctioned/VBN
off/RB
in/IN
a/DT
series/NN
of/IN
sales/NNS
held/VBN
over/IN
four/CD
days/NNS
,/,
included/VBD
porcelains/NNS
,/,
furniture/NN
and/CC
paintings/NNS
./.
An/DT
Henri/NNP
Matisse/NNP
,/,
auctioned/VBN
last/JJ
Wednesday/NNP
,/,
fetched/VBD
$/$
12.4/CD
million/CD
,/,
a/DT
world/NN
record/NN
for/IN
the/DT
artist/NN
./.
In/IN
addition/NN
,/,
a/DT
handful/NN
of/IN
paintings/NNS
from/IN
the/DT
Dorrance/NNP
collection/NN
remain/VBP
to/TO
be/VB
sold/VBN
at/IN
Sotheby/NNP
's/POS
annual/JJ
old/JJ
masters/NNS
paintings/NNS
auction/NN
in/IN
January/NNP
./.
The/DT
Better/NNP
Business/NNP
Bureau/NNP
of/IN
San/NNP
Diego/NNP
and/CC
the/DT
state/NN
Attorney/NNP
General/NNP
's/POS
office/NN
entered/VBD
into/IN
a/DT
settlement/NN
stemming/VBG
from/IN
an/DT
investigation/NN
of/IN
bureau-sponsored/JJ
business/NN
directories/NNS
published/VBN
by/IN
an/DT
outside/JJ
firm/NN
,/,
Better/NNP
Book/NNP
Inc/NNP
./.
The/DT
settlement/NN
stems/VBZ
from/IN
charges/NNS
that/IN
Better/NNP
Book/NNP
,/,
now/RB
defunct/JJ
,/,
made/VBD
misrepresentations/NNS
in/IN
selling/VBG
advertising/NN
for/IN
the/DT
directories/NNS
and/CC
memberships/NNS
in/IN
the/DT
bureau/NN
from/IN
1984/CD
to/TO
1986/CD
./.
Without/IN
admitting/VBG
any/DT
guilt/NN
,/,
the/DT
bureau/NN
agreed/VBD
to/TO
several/JJ
conditions/NNS
if/IN
it/PRP
again/RB
contracts/VBZ
with/IN
an/DT
outside/JJ
firm/NN
to/TO
publish/VB
its/PRP$
directories/NNS
./.
The/DT
conditions/NNS
include/VBP
not/RB
misrepresenting/VBG
how/WRB
many/JJ
directories/NNS
will/MD
be/VB
distributed/VBN
,/,
and/CC
agreeing/VBG
to/TO
make/VB
refunds/NNS
to/TO
directory/NN
advertisers/NNS
if/IN
any/DT
misrepresentations/NNS
are/VBP
involved/VBN
in/IN
the/DT
sale/NN
./.
The/DT
Attorney/NNP
General/NNP
's/POS
investigation/NN
was/VBD
sparked/VBN
by/IN
lawsuits/NNS
and/CC
charges/NNS
by/IN
angry/JJ
California/NNP
businesspeople/NN
that/IN
they/PRP
were/VBD
swindled/VBN
in/IN
a/DT
bureau-sponsored/JJ
directory/NN
project/NN
contracted/VBN
by/IN
Better/NNP
Book/NNP
./.
The/DT
uproar/NN
led/VBD
to/TO
the/DT
closing/NN
of/IN
the/DT
Los/NNP
Angeles/NNP
Better/NNP
Business/NNP
Bureau/NNP
in/IN
late/JJ
1987/CD
./.
McCaw/NNP
Cellular/NNP
Communications/NNPS
Inc./NNP
said/VBD
it/PRP
obtained/VBD
``/``
firm/JJ
''/''
financing/NN
commitments/NNS
from/IN
three/CD
major/JJ
banks/NNS
in/IN
regard/NN
to/TO
its/PRP$
offer/NN
for/IN
50.3/CD
%/NN
of/IN
LIN/NNP
Broadcasting/NNP
Corp/NNP
./.
Morgan/NNP
Guaranty/NNP
Trust/NNP
,/,
Toronto-Dominion/NNP
Bank/NNP
and/CC
Provident/NNP
National/NNP
Bank/NNP
,/,
an/DT
affiliate/NN
of/IN
PNC/NNP
Financial/NNP
Corp./NNP
,/,
jointly/RB
committed/VBD
$/$
1.2/CD
billion/CD
of/IN
financing/NN
,/,
subject/JJ
to/TO
certain/JJ
conditions/NNS
,/,
McCaw/NNP
said/VBD
./.
Further/RBR
,/,
McCaw/NNP
said/VBD
the/DT
banks/NNS
expressed/VBD
confidence/NN
that/IN
the/DT
balance/NN
of/IN
the/DT
$/$
4.5/CD
billion/CD
bank/NN
facility/NN
will/MD
be/VB
committed/VBN
within/IN
the/DT
next/JJ
several/JJ
weeks/NNS
by/IN
a/DT
syndicate/NN
of/IN
foreign/JJ
and/CC
domestic/JJ
banks/NNS
./.
Morgan/NNP
,/,
Toronto-Dominion/NNP
and/CC
Provident/NNP
are/VBP
leading/VBG
that/DT
syndicate/NN
./.
McCaw/NNP
is/VBZ
offering/VBG
to/TO
buy/VB
22/CD
million/CD
shares/NNS
of/IN
LIN/NNP
for/IN
$/$
125/CD
each/DT
in/IN
cash/NN
,/,
which/WDT
would/MD
result/VB
in/IN
McCaw/NNP
owning/VBG
50.3/CD
%/NN
of/IN
the/DT
cellular-phone/NN
and/CC
broadcasting/NN
concern/NN
./.
The/DT
offer/NN
is/VBZ
in/IN
limbo/NN
,/,
however/RB
,/,
because/IN
LIN/NNP
has/VBZ
agreed/VBN
to/TO
merge/VB
its/PRP$
cellular-phone/NN
businesses/NNS
with/IN
BellSouth/NNP
Corp/NNP
./.
In/IN
national/JJ
over-the-counter/JJ
trading/NN
Friday/NNP
,/,
LIN/NNP
shares/NNS
rose/VBD
62.5/CD
cents/NNS
to/TO
close/VB
at/IN
$/$
110.625/CD
./.
Beijing/NNP
lawmakers/NNS
have/VBP
called/VBN
for/IN
jails/NNS
to/TO
be/VB
built/VBN
to/TO
house/VB
prostitutes/NNS
and/CC
for/IN
severe/JJ
punishment/NN
,/,
including/VBG
the/DT
death/NN
sentence/NN
,/,
for/IN
anyone/NN
who/WP
induces/VBZ
or/CC
coerces/VBZ
women/NNS
into/IN
prostitution/NN
./.
The/DT
official/JJ
Xinhua/NNP
News/NNP
Agency/NNP
said/VBD
the/DT
municipal/JJ
government/NN
was/VBD
discussing/VBG
a/DT
draft/NN
bill/NN
to/TO
give/VB
the/DT
capital/NN
its/PRP$
first/JJ
anti-prostitution/JJ
statutes/NNS
./.
It/PRP
quoted/VBD
Liu/NNP
Changyi/NNP
,/,
deputy/NN
director/NN
of/IN
the/DT
Beijing/NNP
Public/NNP
Security/NNP
Bureau/NNP
,/,
as/IN
saying/VBG
that/IN
there/EX
were/VBD
many/RB
more/JJR
people/NNS
involved/VBN
in/IN
prostitution/NN
now/RB
than/IN
in/IN
1985/CD
,/,
when/WRB
there/EX
were/VBD
about/IN
100/CD
cases/NNS
./.
Foreigners/NNS
involved/VBN
in/IN
prostitution/NN
will/MD
be/VB
punished/VBN
according/VBG
to/TO
the/DT
law/NN
,/,
and/CC
those/DT
with/IN
sexually/RB
transmitted/JJ
diseases/NNS
will/MD
be/VB
expelled/VBN
from/IN
the/DT
country/NN
,/,
according/VBG
to/TO
the/DT
regulations/NNS
./.
The/DT
Communists/NNPS
nearly/RB
succeeded/VBD
in/IN
eliminating/VBG
prostitution/NN
after/IN
taking/VBG
over/IN
in/IN
1949/CD
,/,
but/CC
the/DT
practice/NN
has/VBZ
returned/VBN
in/IN
recent/JJ
years/NNS
with/IN
the/DT
country/NN
's/POS
increased/VBN
exposure/NN
to/TO
the/DT
outside/JJ
world/NN
./.
Japan/NNP
agreed/VBD
to/TO
enforce/VB
a/DT
decision/NN
by/IN
an/DT
international/JJ
wildlife/NN
conference/NN
to/TO
ban/VB
all/DT
trade/NN
in/IN
ivory/NN
,/,
a/DT
spokesman/NN
for/IN
the/DT
Ministry/NNP
of/IN
International/NNP
Trade/NNP
and/CC
Industry/NNP
said/VBD
./.
Earlier/RBR
,/,
Japan/NNP
had/VBD
said/VBN
it/PRP
might/MD
file/VB
a/DT
reservation/NN
against/IN
the/DT
ivory/NN
ban/NN
decided/VBN
by/IN
ballot/NN
at/IN
the/DT
103-nation/JJ
United/NNP
Nations/NNPS
Conference/NNP
on/IN
International/NNP
Trade/NNP
in/IN
Endangered/NNP
Species/NNP
in/IN
Switzerland/NNP
last/JJ
week/NN
./.
The/DT
Japanese/NNPS
use/VBP
40/CD
%/NN
of/IN
the/DT
world/NN
's/POS
ivory/NN
./.
Italy/NNP
should/MD
close/VB
the/DT
Leaning/NNP
Tower/NNP
of/IN
Pisa/NNP
because/IN
it/PRP
's/VBZ
a/DT
danger/NN
to/TO
tourists/NNS
,/,
government-appointed/JJ
experts/NNS
said/VBD
./.
``/``
In/IN
some/DT
places/NNS
the/DT
stonework/NN
is/VBZ
so/RB
damaged/JJ
it/PRP
shows/VBZ
signs/NNS
of/IN
breaking/VBG
off/RB
,/,
''/''
scientists/NNS
and/CC
technicians/NNS
said/VBD
in/IN
a/DT
report/NN
to/TO
Public/NNP
Works/NNP
Minister/NNP
Giovanni/NNP
Prandini/NNP
./.
Each/DT
year/NN
,/,
nearly/RB
a/DT
million/CD
people/NNS
pay/VBP
about/IN
$/$
3/CD
to/TO
make/VB
the/DT
spiral/NN
climb/NN
up/IN
294/CD
steps/NNS
to/TO
the/DT
top/NN
of/IN
the/DT
800-year-old/JJ
marble/NN
tower/NN
./.
East/NNP
Germany/NNP
pledged/VBD
to/TO
reduce/VB
alcohol/NN
consumption/NN
by/IN
boosting/VBG
production/NN
of/IN
soft/JJ
drinks/NNS
and/CC
fruit/NN
juices/NNS
./.
Trade/NNP
and/CC
Supply/NNP
Minister/NNP
Gerhard/NNP
Briksa/NNP
said/VBD
in/IN
a/DT
letter/NN
published/VBN
in/IN
the/DT
youth/NN
daily/JJ
Junge/NNP
Welt/NNP
that/IN
the/DT
rise/NN
in/IN
alcohol/NN
consumption/NN
in/IN
East/NNP
Germany/NNP
had/VBD
been/VBN
halted/VBN
;/:
but/CC
to/TO
reduce/VB
it/PRP
further/RBR
,/,
he/PRP
said/VBD
,/,
production/NN
and/CC
supply/NN
of/IN
other/JJ
beverages/NNS
,/,
including/VBG
fruit/NN
juices/NNS
,/,
should/MD
be/VB
stepped/VBN
up/RB
./.
He/PRP
added/VBD
that/IN
shops/NNS
will/MD
have/VB
to/TO
continue/VB
reducing/VBG
their/PRP$
stocks/NNS
of/IN
liquor/NN
and/CC
avoid/VB
displaying/VBG
them/PRP
too/RB
prominently/RB
in/IN
the/DT
window/NN
./.
Hong/NNP
Kong/NNP
has/VBZ
built/VBN
a/DT
detention/NN
center/NN
for/IN
illegal/JJ
immigrants/NNS
from/IN
China/NNP
because/IN
China/NNP
has/VBZ
refused/VBN
for/IN
the/DT
past/JJ
two/CD
weeks/NNS
to/TO
accept/VB
them/PRP
back/RB
./.
The/DT
center/NN
,/,
close/RB
to/TO
Hong/NNP
Kong/NNP
's/POS
border/NN
with/IN
China/NNP
,/,
will/MD
be/VB
ready/JJ
today/NN
and/CC
will/MD
be/VB
able/JJ
to/TO
house/VB
1,000/CD
inmates/NNS
,/,
Police/NNP
Deputy/NNP
Director/NNP
Peter/NNP
Wong/NNP
said/VBD
./.
The/DT
dispute/NN
started/VBD
when/WRB
China/NNP
,/,
angry/JJ
that/IN
Hong/NNP
Kong/NNP
had/VBD
allowed/VBN
dissident/NN
swimmer/NN
Yang/NNP
Yang/NNP
to/TO
flee/VB
to/TO
the/DT
U.S./NNP
,/,
halted/VBD
the/DT
usual/JJ
daily/JJ
transfer/NN
of/IN
illegal/JJ
immigrants/NNS
caught/VBN
in/IN
this/DT
British/JJ
colony/NN
,/,
which/WDT
reverts/VBZ
to/TO
Beijing/NNP
's/POS
control/NN
in/IN
1997/CD
./.
Sweating/VBG
under/IN
the/DT
glare/NN
of/IN
newly/RB
installed/VBN
television/NN
lights/NNS
,/,
British/JJ
members/NNS
of/IN
Parliament/NNP
demanded/VBD
a/DT
halt/NN
to/TO
the/DT
experimental/JJ
televising/NN
of/IN
debates/NNS
./.
A/DT
group/NN
of/IN
senior/JJ
Conservative/JJ
legislators/NNS
,/,
complaining/VBG
the/DT
House/NNP
of/IN
Commons/NNPS
was/VBD
like/IN
a/DT
sauna/NN
,/,
demanded/VBD
that/IN
the/DT
experiment/NN
be/VB
stopped/VBN
unless/IN
the/DT
intensity/NN
of/IN
the/DT
lights/NNS
is/VBZ
reduced/VBN
./.
One/CD
Conservative/NN
MP/NNP
,/,
David/NNP
Wilshire/NNP
,/,
said/VBD
:/:
``/``
I/PRP
should/MD
have/VB
a/DT
wonderful/JJ
suntan/NN
by/IN
Christmas/NNP
./.
''/''
Debates/NNS
are/VBP
due/JJ
to/TO
be/VB
broadcast/VBN
nationally/RB
starting/VBG
Nov./NNP
21/CD
in/IN
a/DT
six-month/JJ
experiment/NN
./.
A/DT
majority/NN
of/IN
Japanese/JJ
banks/NNS
are/VBP
said/VBN
to/TO
be/VB
wary/JJ
of/IN
making/VBG
new/JJ
loans/NNS
to/TO
Mexico/NNP
under/IN
the/DT
Brady/NNP
plan/NN
because/IN
they/PRP
're/VBP
uncertain/JJ
the/DT
Mexican/JJ
economy/NN
will/MD
remain/VB
stable/JJ
./.
Instead/RB
,/,
many/JJ
small/JJ
and/CC
medium-sized/JJ
banks/NNS
,/,
and/CC
some/DT
larger/JJR
ones/NNS
,/,
are/VBP
likely/JJ
to/TO
take/VB
one/CD
of/IN
the/DT
other/JJ
two/CD
options/NNS
open/JJ
to/TO
them/PRP
under/IN
the/DT
plan/NN
,/,
Japanese/JJ
banking/NN
officials/NNS
said/VBD
./.
The/DT
plan/NN
,/,
proposed/VBN
by/IN
U.S./NNP
Secretary/NNP
of/IN
State/NNP
Nicholas/NNP
Brady/NNP
,/,
calls/VBZ
for/IN
banks/NNS
either/CC
to/TO
make/VB
new/JJ
loans/NNS
or/CC
to/TO
reduce/VB
the/DT
principle/NN
on/IN
existing/JJ
loans/NNS
or/CC
to/TO
cut/VB
the/DT
interest/NN
rate/NN
on/IN
those/DT
existing/VBG
loans/NNS
./.
The/DT
officials/NNS
said/VBD
that/DT
most/JJS
Japanese/JJ
banks/NNS
prefer/VBP
the/DT
losses/NNS
they/PRP
'd/MD
suffer/VB
in/IN
either/DT
of/IN
the/DT
latter/JJ
options/NNS
to/TO
the/DT
risk/NN
of/IN
new/JJ
lending/NN
./.
But/CC
an/DT
official/NN
at/IN
a/DT
long-term/JJ
credit/NN
bank/NN
explained/VBD
that/IN
since/IN
some/DT
larger/JJR
banks/NNS
have/VBP
already/RB
taken/VBN
loss/NN
provisions/NNS
for/IN
loans/NNS
to/TO
other/JJ
Third/NNP
World/NNP
nations/NNS
,/,
further/JJ
write-offs/NNS
could/MD
be/VB
viewed/VBN
as/IN
intolerable/JJ
./.
``/``
They/PRP
ca/MD
n't/RB
take/VB
the/DT
hit/NN
''/''
to/TO
their/PRP$
earnings/NNS
,/,
he/PRP
said/VBD
./.
As/IN
a/DT
result/NN
,/,
the/DT
official/NN
said/VBD
,/,
they/PRP
may/MD
be/VB
forced/VBN
into/IN
a/DT
no-win/JJ
situation/NN
in/IN
which/WDT
they/PRP
make/VBP
risky/JJ
loans/NNS
that/IN
they/PRP
could/MD
have/VB
to/TO
write/VB
off/RB
later/RB
./.
A/DT
poll/NN
in/IN
male-dominated/JJ
South/NNP
Korea/NNP
put/VBD
Margaret/NNP
Thatcher/NNP
first/JJ
on/IN
a/DT
list/NN
of/IN
most-respected/JJS
foreign/JJ
leaders/NNS
./.
The/DT
British/JJ
prime/JJ
minister/NN
was/VBD
the/DT
only/JJ
woman/NN
singled/VBN
out/RB
by/IN
respondents/NNS
,/,
who/WP
put/VBD
Soviet/JJ
President/NNP
Mikhail/NNP
Gorbachev/NNP
in/IN
second/JJ
place/NN
.../:
./.
The/DT
Soviet/JJ
newspaper/NN
Trud/NNP
reported/VBD
that/IN
Mickey/NNP
Mouse/NNP
will/MD
appear/VB
in/IN
a/DT
Russian-language/JJ
comic/JJ
book/NN
to/TO
be/VB
issued/VBN
four/CD
times/NNS
a/DT
year/NN
by/IN
Soviet/JJ
publisher/NN
Fizkultura/NNP
i/FW
Sport/NNP
and/CC
Denmark/NNP
's/POS
Gutenberghus/NNP
Group/NNP
./.
The/DT
comic/JJ
book/NN
will/MD
cost/VB
about/IN
$/$
2/CD
./.
Ekco/NNP
Group/NNP
Inc./NNP
,/,
Nashua/NNP
,/,
N.H./NNP
,/,
expects/VBZ
to/TO
report/VB
that/DT
net/JJ
income/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
ended/VBN
Oct./NNP
1/CD
,/,
fell/VBD
50/CD
%/NN
to/TO
60/CD
%/NN
from/IN
$/$
2.1/CD
million/CD
,/,
or/CC
11/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
./.
Robert/NNP
Stein/NNP
,/,
president/NN
and/CC
chief/JJ
executive/NN
officer/NN
,/,
attributed/VBD
the/DT
expected/JJ
decline/NN
partly/RB
to/TO
the/DT
effects/NNS
of/IN
a/DT
two-week/JJ
strike/NN
last/JJ
month/NN
at/IN
the/DT
company/NN
's/POS
Masillon/NNP
,/,
Ohio/NNP
,/,
bakeware/NN
facility/NN
./.
Softer-than-expected/JJ
orders/NNS
in/IN
early/JJ
September/NNP
also/RB
played/VBD
a/DT
role/NN
,/,
he/PRP
said/VBD
in/IN
an/DT
interview/NN
./.
But/CC
Mr./NNP
Stein/NNP
said/VBD
he/PRP
is/VBZ
``/``
reasonably/RB
confident/JJ
''/''
that/IN
earnings/NNS
for/IN
the/DT
full/JJ
year/NN
will/MD
exceed/VB
the/DT
$/$
3.1/CD
million/CD
,/,
or/CC
17/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
1988/CD
./.
That/DT
would/MD
require/VB
fourth-quarter/JJ
net/NN
of/IN
more/JJR
than/IN
about/IN
22/CD
cents/NNS
to/TO
24/CD
cents/NNS
a/DT
share/NN
,/,
assuming/VBG
that/IN
Mr./NNP
Stein/NNP
's/POS
third-quarter/JJ
estimate/NN
proves/VBZ
accurate/JJ
./.
In/IN
the/DT
year-earlier/JJ
fourth/JJ
quarter/NN
,/,
the/DT
company/NN
had/VBD
profit/NN
of/IN
$/$
2.7/CD
million/CD
,/,
or/CC
15/CD
cents/NNS
a/DT
share/NN
./.
Third-quarter/JJ
revenue/NN
is/VBZ
expected/VBN
to/TO
be/VB
$/$
40/CD
million/CD
to/TO
$/$
45/CD
million/CD
,/,
up/RB
from/IN
$/$
38.2/CD
million/CD
a/DT
year/NN
earlier/RB
,/,
according/VBG
to/TO
Neil/NNP
Gordon/NNP
,/,
treasurer/NN
./.
The/DT
year-earlier/JJ
periods/NNS
do/VBP
n't/RB
reflect/VB
results/NNS
of/IN
the/DT
company/NN
's/POS
Woodstream/NNP
Corp./NNP
unit/NN
,/,
acquired/VBN
last/JJ
January/NNP
,/,
but/CC
include/VBP
some/DT
Canadian/JJ
operations/NNS
that/WDT
were/VBD
sold/VBN
at/IN
the/DT
end/NN
of/IN
1988/CD
./.
August/NNP
through/IN
October/NNP
traditionally/RB
is/VBZ
the/DT
busiest/JJS
season/NN
for/IN
the/DT
bakeware/NN
business/NN
,/,
as/IN
many/JJ
retailers/NNS
use/VBP
the/DT
goods/NNS
as/IN
autumn/NN
promotional/JJ
items/NNS
./.
Mr./NNP
Stein/NNP
said/VBD
some/DT
retailers/NNS
--/:
perhaps/RB
anxious/JJ
about/IN
minimizing/VBG
inventories/NNS
--/:
appear/VBP
to/TO
have/VB
held/VBN
back/RB
on/IN
orders/NNS
in/IN
September/NNP
but/CC
have/VBP
been/VBN
ordering/VBG
more/RBR
heavily/RB
in/IN
October/NNP
./.
Mr./NNP
Stein/NNP
said/VBD
Woodstream/NNP
is/VBZ
``/``
marginally/RB
profitable/JJ
''/''
but/CC
has/VBZ
n't/RB
performed/VBN
as/RB
well/RB
as/IN
expected/VBN
./.
Woodstream/NNP
's/POS
Victor-brand/JJ
mousetraps/NNS
and/CC
other/JJ
pest-control/JJ
products/NNS
are/VBP
``/``
doing/VBG
very/RB
well/RB
,/,
''/''
and/CC
its/PRP$
plastic/JJ
storage-case/NN
products/NNS
``/``
are/VBP
poised/VBN
for/IN
growth/NN
,/,
''/''
he/PRP
said/VBD
./.
But/CC
the/DT
unit/NN
's/POS
third/JJ
segment/NN
,/,
wildlife/NN
traps/NNS
,/,
is/VBZ
suffering/VBG
from/IN
a/DT
``/``
depressed/JJ
market/NN
,/,
''/''
and/CC
Ekco/NNP
is/VBZ
seeking/VBG
to/TO
sell/VB
that/DT
segment/NN
,/,
he/PRP
said/VBD
./.
Mr./NNP
Stein/NNP
said/VBD
he/PRP
expects/VBZ
profit/NN
to/TO
be/VB
higher/JJR
in/IN
1990/CD
than/IN
in/IN
1989/CD
,/,
reflecting/VBG
a/DT
number/NN
of/IN
measures/NNS
taken/VBN
since/IN
the/DT
acquisition/NN
of/IN
Ekco/NNP
Housewares/NNPS
in/IN
late/JJ
1987/CD
./.
the/DT
housewares/NNS
business/NN
,/,
the/DT
company/NN
was/VBD
known/VBN
as/IN
Centronics/NNP
Corp./NNP
;/:
Centronics/NNP
had/VBD
been/VBN
a/DT
maker/NN
of/IN
computer/NN
printers/NNS
,/,
but/CC
Mr./NNP
Stein/NNP
and/CC
other/JJ
officers/NNS
decided/VBD
to/TO
sell/VB
that/DT
business/NN
after/IN
Japanese/JJ
competitors/NNS
grabbed/VBD
a/DT
dominant/JJ
share/NN
of/IN
the/DT
market/NN
./.
Mr./NNP
Stein/NNP
said/VBD
tighter/JJR
operating/NN
controls/NNS
have/VBP
enabled/VBN
Ekco/NNP
to/TO
reduce/VB
inventory/NN
levels/NNS
25/CD
%/NN
to/TO
30/CD
%/NN
;/:
improve/VB
on-time/JJ
delivery/NN
of/IN
orders/NNS
to/TO
about/IN
95/CD
%/NN
from/IN
around/IN
70/CD
%/NN
;/:
and/CC
to/TO
lower/VB
the/DT
number/NN
of/IN
labor/NN
hours/NNS
required/VBN
to/TO
produce/VB
a/DT
unit/NN
./.
By/IN
moving/VBG
the/DT
design/NN
of/IN
new/JJ
products/NNS
in-house/JJ
--/:
instead/RB
of/IN
contracting/VBG
out/RP
the/DT
work/NN
--/:
the/DT
company/NN
also/RB
has/VBZ
been/VBN
able/JJ
to/TO
come/VB
up/RB
with/IN
designs/NNS
that/WDT
can/MD
be/VB
manufactured/VBN
more/RBR
efficiently/RB
,/,
he/PRP
said/VBD
./.
In/IN
addition/NN
to/TO
those/DT
measures/NNS
,/,
the/DT
company/NN
spent/VBD
heavily/RB
earlier/RBR
this/DT
year/NN
to/TO
install/VB
displays/NNS
at/IN
its/PRP$
customers/NNS
'/POS
retail/JJ
outlets/NNS
--/:
a/DT
strategy/NN
that/IN
Mr./NNP
Stein/NNP
said/VBD
has/VBZ
helped/VBN
bolster/VB
awareness/NN
of/IN
the/DT
company/NN
's/POS
brands/NNS
./.
Ekco/NNP
's/POS
housewares/NNS
operation/NN
makes/VBZ
kitchen/NN
tools/NNS
and/CC
gadgets/NNS
,/,
as/RB
well/RB
as/IN
bakeware/NN
,/,
at/IN
factories/NNS
in/IN
the/DT
U.S./NNP
and/CC
Canada/NNP
./.
The/DT
main/JJ
issue/NN
in/IN
the/DT
strike/NN
at/IN
the/DT
Ohio/NNP
facility/NN
was/VBD
health-care/NN
benefits/NNS
,/,
Mr./NNP
Stein/NNP
said/VBD
./.
The/DT
strike/NN
ended/VBD
Oct/NNP
./.
Ekco/NNP
continues/VBZ
to/TO
seek/VB
further/JJ
acquisitions/NNS
in/IN
the/DT
consumer-products/JJ
industry/NN
,/,
Mr./NNP
Stein/NNP
said/VBD
./.
He/PRP
indicated/VBD
that/IN
Ekco/NNP
may/MD
be/VB
interested/JJ
in/IN
acquiring/VBG
another/DT
company/NN
with/IN
revenue/NN
in/IN
the/DT
range/NN
of/IN
$/$
75/CD
million/CD
to/TO
$/$
100/CD
million/CD
,/,
partly/RB
because/IN
mass/NN
merchandisers/NNS
increasingly/RB
want/VBP
to/TO
rely/VB
on/IN
larger/JJR
,/,
and/CC
fewer/JJR
,/,
suppliers/NNS
./.
After/IN
several/JJ
years/NNS
of/IN
booming/JJ
business/NN
with/IN
China/NNP
,/,
foreign/JJ
traders/NNS
are/VBP
bracing/VBG
for/IN
the/DT
biggest/JJS
slump/NN
in/IN
a/DT
decade/NN
./.
The/DT
imposition/NN
of/IN
austerity/NN
measures/NNS
,/,
starting/VBG
last/JJ
October/NNP
,/,
already/RB
had/VBD
begun/VBN
to/TO
pinch/VB
when/WRB
the/DT
massacre/NN
in/IN
Tiananmen/NNP
Square/NNP
on/IN
June/NNP
4/CD
and/CC
subsequent/JJ
events/NNS
tugged/VBD
the/DT
belt/NN
far/RB
tighter/RBR
./.
Foreign/JJ
lending/NN
has/VBZ
been/VBN
virtually/RB
suspended/VBN
since/IN
then/RB
,/,
choking/VBG
liquidity/NN
and/CC
hobbling/VBG
many/JJ
projects/NNS
./.
And/CC
Beijing/NNP
has/VBZ
pulled/VBN
back/RB
on/IN
domestic/JJ
loans/NNS
and/CC
subsidies/NNS
,/,
leaving/VBG
many/JJ
domestic/JJ
buyers/NNS
and/CC
export-oriented/JJ
plants/NNS
strapped/VBN
for/IN
cash/NN
./.
Givaudan/NNP
Far/NNP
East/NNP
Ltd./NNP
,/,
a/DT
Swiss/JJ
concern/NN
that/WDT
sells/VBZ
chemicals/NNS
to/TO
shampoo/NN
and/CC
soap/NN
factories/NNS
in/IN
China/NNP
,/,
typifies/VBZ
the/DT
problems/NNS
./.
Last/JJ
year/NN
's/POS
retrenchment/NN
dried/VBD
up/RP
the/DT
working/NN
capital/NN
of/IN
Chinese/JJ
factories/NNS
./.
The/DT
company/NN
's/POS
sales/NNS
flattened/VBD
during/IN
1989/CD
's/POS
first/JJ
half/NN
./.
The/DT
June/NNP
killings/NNS
magnified/VBD
the/DT
problems/NNS
./.
In/IN
Canton/NNP
,/,
Givaudan/NNP
's/POS
representative/JJ
office/NN
received/VBD
no/DT
orders/NNS
in/IN
June/NNP
./.
At/IN
first/RB
it/PRP
attributed/VBD
the/DT
slump/NN
to/TO
temporary/JJ
business/NN
disruptions/NNS
,/,
but/CC
when/WRB
no/DT
orders/NNS
were/VBD
logged/VBN
in/IN
August/NNP
and/CC
September/NNP
,/,
manager/NN
Donald/NNP
Lai/NNP
became/VBD
convinced/JJ
that/DT
business/NN
would/MD
be/VB
bad/JJ
for/IN
many/JJ
months/NNS
./.
``/``
Things/NNS
have/VBP
grown/VBN
worse/JJR
since/IN
June/NNP
4/CD
,/,
''/''
Mr./NNP
Lai/NNP
says/VBZ
./.
He/PRP
predicts/VBZ
that/IN
sales/NNS
will/MD
drop/VB
between/IN
30/CD
%/NN
and/CC
40/CD
%/NN
from/IN
last/JJ
year/NN
's/POS
$/$
3/CD
million/CD
./.
The/DT
consumer-products/JJ
and/CC
light-industrial/JJ
sectors/NNS
are/VBP
bearing/VBG
the/DT
brunt/NN
of/IN
China/NNP
's/POS
austerity/NN
measures/NNS
,/,
and/CC
foreign/JJ
companies/NNS
such/JJ
as/IN
Givaudan/NNP
that/WDT
deal/VBP
with/IN
those/DT
industries/NNS
are/VBP
being/VBG
hit/VBN
the/DT
hardest/RBS
./.
But/CC
in/IN
general/JJ
,/,
all/DT
foreign-trading/JJ
companies/NNS
are/VBP
feeling/VBG
the/DT
pinch/NN
./.
``/``
The/DT
import/NN
pie/NN
will/MD
shrink/VB
,/,
''/''
says/VBZ
John/NNP
Kamm/NNP
,/,
first/JJ
vice/NN
president/NN
of/IN
the/DT
American/NNP
Chamber/NNP
of/IN
Commerce/NNP
in/IN
Hong/NNP
Kong/NNP
and/CC
a/DT
China/NNP
trade/NN
specialist/NN
./.
``/``
On/IN
the/DT
down/JJ
side/NN
,/,
sales/NNS
could/MD
fall/VB
as/RB
much/JJ
as/IN
90/CD
%/NN
for/IN
some/DT
companies/NNS
;/:
on/IN
the/DT
upper/JJ
side/NN
,/,
sales/NNS
will/MD
be/VB
flat/JJ
./.
''/''
China/NNP
's/POS
foreign/JJ
trade/NN
has/VBZ
gone/VBN
in/IN
cycles/NNS
during/IN
the/DT
past/JJ
decade/NN
./.
The/DT
last/JJ
time/NN
that/IN
traders/NNS
experienced/VBD
a/DT
trough/NN
was/VBD
during/IN
1985-86/CD
,/,
when/WRB
Beijing/NNP
imposed/VBD
tough/JJ
measures/NNS
to/TO
curb/VB
imports/NNS
and/CC
conserve/VB
foreign/JJ
exchange/NN
./.
The/DT
current/JJ
trough/NN
is/VBZ
expected/VBN
to/TO
be/VB
much/RB
deeper/JJR
,/,
because/IN
Beijing/NNP
has/VBZ
cut/VBN
off/RP
domestic/JJ
funds/NNS
from/IN
factories/NNS
for/IN
the/DT
first/JJ
time/NN
to/TO
slow/VB
inflation/NN
./.
In/IN
addition/NN
,/,
the/DT
suspension/NN
of/IN
loans/NNS
and/CC
export/NN
credits/NNS
from/IN
foreign/JJ
governments/NNS
and/CC
institutions/NNS
following/VBG
the/DT
June/NNP
killings/NNS
have/VBP
been/VBN
a/DT
big/JJ
setback/NN
./.
``/``
The/DT
freeze/NN
on/IN
new/JJ
lending/NN
is/VBZ
dealing/VBG
the/DT
single/JJ
biggest/JJS
blow/NN
to/TO
trading/NN
,/,
''/''
says/VBZ
Raymond/NNP
Wong/NNP
,/,
China/NNP
manager/NN
for/IN
Mannesmann/NNP
AG/NNP
,/,
a/DT
West/JJ
German/JJ
machinery-trading/JJ
company/NN
./.
Import/NN
growth/NN
from/IN
the/DT
year-earlier/JJ
months/NNS
slowed/VBD
to/TO
16/CD
%/NN
in/IN
July/NNP
and/CC
7.1/CD
%/NN
in/IN
August/NNP
,/,
compared/VBN
with/IN
an/DT
average/JJ
growth/NN
rate/NN
of/IN
26/CD
%/NN
in/IN
the/DT
first/JJ
half/NN
./.
In/IN
the/DT
first/JJ
eight/CD
months/NNS
of/IN
1989/CD
,/,
imports/NNS
grew/VBD
21/CD
%/NN
,/,
to/TO
$/$
38.32/CD
billion/CD
,/,
down/RB
slightly/RB
from/IN
a/DT
growth/NN
rate/NN
of/IN
23/CD
%/NN
a/DT
year/NN
earlier/RB
./.
The/DT
picture/NN
for/IN
China/NNP
's/POS
exports/NNS
is/VBZ
just/RB
as/RB
bleak/JJ
,/,
mainly/RB
because/IN
of/IN
the/DT
domestic/JJ
credit/NN
squeeze/NN
./.
Exports/NNS
in/IN
the/DT
first/JJ
eight/CD
months/NNS
grew/VBD
only/RB
9/CD
%/NN
,/,
to/TO
$/$
31.48/CD
billion/CD
,/,
compared/VBN
with/IN
a/DT
growth/NN
rate/NN
of/IN
25/CD
%/NN
a/DT
year/NN
earlier/RB
,/,
according/VBG
to/TO
Chinese/JJ
customs/NNS
figures/NNS
./.
The/DT
threat/NN
to/TO
China/NNP
's/POS
balance/NN
of/IN
payments/NNS
is/VBZ
further/RBR
aggravated/VBN
by/IN
the/DT
plunge/NN
in/IN
its/PRP$
foreign-exchange/NN
reserves/NNS
,/,
excluding/VBG
gold/NN
holdings/NNS
./.
The/DT
reserves/NNS
dropped/VBD
for/IN
the/DT
first/JJ
time/NN
in/IN
recent/JJ
years/NNS
,/,
to/TO
$/$
14/CD
billion/CD
in/IN
June/NNP
from/IN
$/$
19/CD
billion/CD
in/IN
April/NNP
./.
The/DT
trend/NN
has/VBZ
prompted/VBN
Beijing/NNP
to/TO
intensify/VB
efforts/NNS
to/TO
curb/VB
imports/NNS
./.
In/IN
recent/JJ
weeks/NNS
,/,
China/NNP
's/POS
leaders/NNS
have/VBP
recentralized/VBN
trading/NN
in/IN
wool/NN
and/CC
scores/NNS
of/IN
chemical/NN
products/NNS
and/CC
commodities/NNS
./.
The/DT
Ministry/NNP
of/IN
Foreign/NNP
Economic/NNP
Relations/NNPS
and/CC
Trade/NNP
set/VBD
up/RP
a/DT
special/JJ
bureau/NN
last/JJ
month/NN
to/TO
monitor/VB
the/DT
issue/NN
of/IN
import/NN
and/CC
export/NN
licenses/NNS
./.
Beijing/NNP
's/POS
periodic/JJ
clampdowns/NNS
on/IN
imports/NNS
have/VBP
taught/VBN
many/JJ
trading/NN
companies/NNS
that/IN
the/DT
best/JJS
way/NN
to/TO
get/VB
through/IN
the/DT
drought/NN
is/VBZ
by/IN
helping/VBG
China/NNP
export/VB
./.
For/IN
example/NN
,/,
Nissho/NNP
Iwai/NNP
Corp./NNP
,/,
one/CD
of/IN
the/DT
biggest/JJS
Japanese/JJ
trading/NN
houses/NNS
,/,
now/RB
buys/VBZ
almost/RB
twice/RB
as/IN
many/JJ
goods/NNS
from/IN
China/NNP
as/IN
it/PRP
sells/VBZ
to/TO
that/DT
country/NN
./.
Three/CD
years/NNS
ago/RB
,/,
the/DT
ratio/NN
was/VBD
reversed/JJ
./.
But/CC
the/DT
strategy/NN
is/VBZ
n't/RB
helping/VBG
much/RB
this/DT
time/NN
./.
``/``
Both/DT
sectors/NNS
of/IN
imports/NNS
and/CC
exports/NNS
look/VBP
just/RB
as/RB
bad/JJ
,/,
''/''
says/VBZ
Masahiko/NNP
Kitamura/NNP
,/,
general/JJ
manager/NN
of/IN
Nissho/NNP
Iwai/NNP
's/POS
Canton/NNP
office/NN
./.
He/PRP
expects/VBZ
the/DT
company/NN
's/POS
trading/NN
business/NN
to/TO
drop/VB
as/RB
much/JJ
as/IN
40/CD
%/NN
this/DT
year/NN
./.
For/IN
a/DT
short/JJ
time/NN
after/IN
June/NNP
4/CD
,/,
it/PRP
appeared/VBD
that/IN
the/DT
trade/NN
picture/NN
would/MD
remain/VB
fairly/RB
bright/JJ
./.
Many/JJ
foreign/JJ
trading/VBG
offices/NNS
in/IN
Hong/NNP
Kong/NNP
were/VBD
swamped/VBN
with/IN
telexes/NNS
and/CC
telephone/NN
calls/NNS
from/IN
Chinese/JJ
trade/NN
officials/NNS
urging/VBG
them/PRP
not/RB
to/TO
sever/VB
ties/NNS
./.
Even/RB
the/DT
Bank/NNP
of/IN
China/NNP
,/,
which/WDT
normally/RB
took/VBD
weeks/NNS
to/TO
process/VB
letters/NNS
of/IN
credit/NN
,/,
was/VBD
settling/VBG
the/DT
letters/NNS
at/IN
record/JJ
speed/NN
to/TO
dispel/VB
rumors/NNS
about/IN
the/DT
bank/NN
's/POS
financial/JJ
health/NN
./.
But/CC
when/WRB
foreign/JJ
traders/NNS
tried/VBD
to/TO
do/VB
business/NN
,/,
they/PRP
discovered/VBD
that/IN
the/DT
eagerness/NN
of/IN
Chinese/JJ
trade/NN
officials/NNS
was/VBD
just/RB
a/DT
smokescreen/NN
./.
The/DT
suspension/NN
of/IN
foreign/JJ
loans/NNS
has/VBZ
weakened/VBN
the/DT
buying/NN
power/NN
of/IN
China/NNP
's/POS
national/JJ
trading/VBG
companies/NNS
,/,
which/WDT
are/VBP
among/IN
the/DT
country/NN
's/POS
biggest/JJS
importers/NNS
./.
Business/NN
is/VBZ
n't/RB
any/RB
better/RB
on/IN
the/DT
provincial/JJ
or/CC
municipal/JJ
level/NN
,/,
foreign/JJ
traders/NNS
say/VBP
./.
Shanghai/NNP
Investment/NNP
&/CC
Trust/NNP
Co./NNP
,/,
known/VBN
as/IN
Sitco/NNP
,/,
is/VBZ
the/DT
city/NN
's/POS
main/JJ
financier/NN
for/IN
trading/NN
business/NN
./.
Sitco/NNP
had/VBD
customarily/RB
tapped/VBN
the/DT
Japanese/JJ
bond/NN
market/NN
for/IN
funds/NNS
,/,
but/CC
it/PRP
ca/MD
n't/RB
do/VB
that/DT
any/RB
longer/RB
./.
Foreign/JJ
traders/NNS
say/VBP
the/DT
company/NN
is/VBZ
strapped/JJ
for/IN
cash/NN
./.
``/``
It/PRP
has/VBZ
difficulties/NNS
paying/VBG
its/PRP$
foreign/JJ
debts/NNS
,/,
''/''
says/VBZ
a/DT
Hong/NNP
Kong/NNP
executive/NN
who/WP
is/VBZ
familiar/JJ
with/IN
Sitco/NNP
's/POS
business/NN
./.
``/``
How/WRB
can/MD
it/PRP
make/VB
available/JJ
funds/NNS
for/IN
purchases/NNS
?/.
''/''
Foreign/JJ
traders/NNS
also/RB
say/VBP
many/JJ
of/IN
China/NNP
's/POS
big/JJ
infrastructural/JJ
projects/NNS
have/VBP
been/VBN
canceled/VBN
or/CC
postponed/VBN
because/RB
of/IN
the/DT
squeeze/NN
on/IN
domestic/JJ
and/CC
foreign/JJ
credit/NN
./.
Albert/NNP
Lee/NNP
,/,
a/DT
veteran/NN
trader/NN
who/WP
specializes/VBZ
in/IN
machinery/NN
sales/NNS
,/,
estimates/VBZ
that/IN
as/RB
many/JJ
as/IN
70/CD
%/NN
of/IN
projects/NNS
that/WDT
had/VBD
obtained/VBN
approval/NN
to/TO
proceed/VB
have/VBP
been/VBN
canceled/VBN
in/IN
recent/JJ
months/NNS
./.
``/``
There/EX
are/VBP
virtually/RB
no/RB
new/JJ
projects/NNS
,/,
and/CC
that/DT
means/VBZ
no/DT
new/JJ
business/NN
for/IN
us/PRP
,/,
''/''
he/PRP
says/VBZ
./.
Even/RB
when/WRB
new/JJ
lending/NN
resumes/VBZ
,/,
foreign/JJ
exchange/NN
would/MD
still/RB
be/VB
tight/JJ
because/IN
Beijing/NNP
will/MD
likely/RB
try/VB
to/TO
rein/VB
in/RP
foreign/JJ
borrowing/NN
,/,
which/WDT
has/VBZ
grown/VBN
between/IN
30/CD
%/NN
and/CC
40/CD
%/NN
in/IN
the/DT
past/JJ
few/JJ
years/NNS
./.
And/CC
foreign/JJ
creditors/NNS
are/VBP
likely/JJ
to/TO
be/VB
more/RBR
cautious/JJ
about/IN
extending/VBG
new/JJ
loans/NNS
because/IN
China/NNP
is/VBZ
nearing/VBG
a/DT
peak/NN
repayment/NN
period/NN
as/IN
many/JJ
loans/NNS
start/VBP
falling/VBG
due/JJ
in/IN
the/DT
next/JJ
two/CD
to/TO
five/CD
years/NNS
./.
Another/DT
reason/NN
for/IN
the/DT
intensity/NN
of/IN
the/DT
trade/NN
problems/NNS
is/VBZ
that/IN
Beijing/NNP
has/VBZ
extended/VBN
the/DT
current/JJ
clampdown/NN
on/IN
imports/NNS
beyond/IN
the/DT
usual/JJ
target/NN
of/IN
consumer/NN
products/NNS
to/TO
include/VB
steel/NN
,/,
chemical/NN
fertilizers/NNS
and/CC
plastics/NNS
./.
These/DT
have/VBP
been/VBN
among/IN
the/DT
country/NN
's/POS
leading/VBG
imports/NNS
,/,
particularly/RB
last/JJ
year/NN
when/WRB
there/EX
were/VBD
shortages/NNS
that/WDT
led/VBD
many/JJ
traders/NNS
to/TO
buy/VB
heavily/RB
and/CC
pay/VB
dearly/RB
./.
But/CC
the/DT
shortages/NNS
also/RB
spawned/VBD
rampant/JJ
speculation/NN
and/CC
spiraling/VBG
prices/NNS
./.
To/TO
stem/VB
speculation/NN
,/,
Beijing/NNP
imposed/VBD
ceiling/NN
prices/NNS
that/WDT
went/VBD
into/IN
effect/NN
earlier/RBR
this/DT
year/NN
./.
Traders/NNS
who/WP
had/VBD
bought/VBN
the/DT
goods/NNS
at/IN
prices/NNS
above/IN
the/DT
ceiling/NN
do/VBP
n't/RB
want/VB
to/TO
take/VB
a/DT
loss/NN
on/IN
resales/NNS
and/CC
are/VBP
holding/VBG
onto/IN
their/PRP$
stock/NN
./.
The/DT
resulting/VBG
stockpiling/NN
has/VBZ
depressed/VBN
the/DT
market/NN
./.
But/CC
Beijing/NNP
ca/MD
n't/RB
cut/VB
back/RB
on/IN
such/JJ
essential/JJ
imports/NNS
as/IN
raw/JJ
materials/NNS
for/IN
too/RB
long/RB
without/IN
hampering/VBG
the/DT
country/NN
's/POS
export/NN
business/NN
./.
Mr./NNP
Kamm/NNP
,/,
the/DT
China/NNP
trade/NN
expert/NN
,/,
estimates/VBZ
that/IN
as/RB
much/JJ
as/IN
50/CD
%/NN
of/IN
Guangdong/NNP
's/POS
exports/NNS
is/VBZ
made/VBN
up/RB
of/IN
processed/VBN
imported/VBN
raw/JJ
materials/NNS
./.
Oil/NN
Spill/NN
Case/NN
Shows/VBZ
Liability/NN
Fund/NN
Flaws/NNS
AN/DT
UNRESOLVED/JJ
two-year-old/JJ
dispute/NN
stemming/VBG
from/IN
an/DT
Alaskan/JJ
oil/NN
spill/NN
has/VBZ
helped/VBN
spur/VB
a/DT
drive/NN
for/IN
tougher/JJR
federal/JJ
laws/NNS
to/TO
protect/VB
victims/NNS
of/IN
such/JJ
accidents/NNS
./.
The/DT
class-action/JJ
suit/NN
highlights/VBZ
shortcomings/NNS
of/IN
the/DT
Trans-Alaska/NNP
Pipeline/NNP
Liability/NNP
Fund/NNP
,/,
which/WDT
gets/VBZ
its/PRP$
money/NN
from/IN
oil/NN
companies/NNS
using/VBG
the/DT
pipeline/NN
and/CC
compensates/VBZ
those/DT
harmed/VBN
by/IN
oil/NN
spills/NNS
./.
On/IN
July/NNP
2/CD
,/,
1987/CD
,/,
the/DT
tanker/NN
S.S./NNP
Glacier/NNP
Bay/NNP
struck/VBD
a/DT
rock/NN
and/CC
spilled/VBD
almost/RB
150,000/CD
gallons/NNS
of/IN
oil/NN
into/IN
the/DT
Cook/NNP
Inlet/NNP
./.
Commercial/JJ
fishermen/NNS
and/CC
fish/NN
processors/NNS
filed/VBD
suit/NN
in/IN
federal/JJ
court/NN
in/IN
a/DT
claim/NN
that/WDT
has/VBZ
ballooned/VBN
to/TO
more/JJR
than/IN
$/$
104.8/CD
million/CD
./.
Defendants/NNS
include/VBP
British/NNP
Petroleum/NNP
America/NNP
;/:
Trinidad/NNP
Corp./NNP
,/,
the/DT
shipper/NN
;/:
and/CC
the/DT
pipeline/NN
liability/NN
fund/NN
./.
The/DT
fund/NN
was/VBD
created/VBN
by/IN
the/DT
Trans-Alaska/NNP
Pipeline/NNP
Act/NNP
,/,
which/WDT
provides/VBZ
that/IN
the/DT
owner/NN
or/CC
operator/NN
of/IN
a/DT
vessel/NN
involved/VBN
in/IN
an/DT
oil/NN
spill/NN
must/MD
pay/VB
the/DT
first/JJ
$/$
14/CD
million/CD
in/IN
damages/NNS
./.
The/DT
fund/NN
is/VBZ
required/VBN
to/TO
pay/VB
claims/NNS
up/IN
to/TO
an/DT
additional/JJ
$/$
86/CD
million/CD
./.
The/DT
fund/NN
's/POS
purpose/NN
is/VBZ
to/TO
provide/VB
quick/JJ
and/CC
adequate/JJ
relief/NN
./.
But/CC
the/DT
Glacier/NNP
Bay/NNP
case/NN
,/,
the/DT
fund/NN
's/POS
first/JJ
test/NN
,/,
shows/VBZ
how/WRB
easily/RB
the/DT
fund/NN
can/MD
be/VB
undermined/VBN
./.
Trinidad/NNP
Corp./NNP
is/VBZ
contesting/VBG
liability/NN
./.
It/PRP
claims/VBZ
the/DT
Coast/NNP
Guard/NNP
failed/VBD
to/TO
chart/VB
the/DT
rock/NN
and/CC
refuses/VBZ
to/TO
pay/VB
damages/NNS
./.
That/DT
means/VBZ
the/DT
fund/NN
is/VBZ
n't/RB
obligated/VBN
to/TO
pay/VB
anything/NN
,/,
at/IN
least/JJS
so/RB
far/RB
./.
The/DT
Oil/NNP
Pollution/NNP
Act/NNP
,/,
scheduled/VBN
to/TO
come/VB
up/RB
for/IN
a/DT
vote/NN
in/IN
Congress/NNP
this/DT
fall/NN
,/,
would/MD
provide/VB
that/IN
if/IN
claimants/NNS
are/VBP
n't/RB
paid/VBN
within/IN
90/CD
days/NNS
of/IN
a/DT
spill/NN
,/,
the/DT
liability/NN
fund/NN
would/MD
compensate/VB
them/PRP
and/CC
seek/VB
reimbursement/NN
from/IN
the/DT
owner/NN
or/CC
operator/NN
of/IN
the/DT
vessel/NN
,/,
says/VBZ
a/DT
spokesman/NN
for/IN
Rep./NNP
George/NNP
Miller/NNP
D./NNP
,/,
Calif./NNP
a/DT
sponsor/NN
of/IN
the/DT
bill/NN
./.
The/DT
spokesman/NN
says/VBZ
the/DT
``/``
glitch/NN
''/''
in/IN
the/DT
statute/NN
is/VBZ
``/``
the/DT
worst/JJS
kind/NN
of/IN
Catch-22/NN
./.
''/''
Many/JJ
Law/NN
School/NN
Grads/NNS
Find/VBP
Classes/NNS
Never/RB
End/VB
RECENT/JJ
LAW/NN
school/NN
graduates/NNS
are/VBP
starting/VBG
jobs/NNS
with/IN
law/NN
firms/NNS
this/DT
fall/NN
--/:
and/CC
heading/VBG
back/RB
to/TO
class/NN
./.
Bar/NN
associations/NNS
and/CC
consultants/NNS
are/VBP
offering/VBG
more/JJR
programs/NNS
to/TO
teach/VB
associates/NNS
all/DT
they/PRP
need/VBP
to/TO
know/VB
about/IN
law/NN
but/CC
did/VBD
n't/RB
learn/VB
in/IN
law/NN
school/NN
./.
``/``
Law/NN
school/NN
teaches/VBZ
wonderful/JJ
theory/NN
,/,
but/CC
it/PRP
does/VBZ
n't/RB
teach/VB
the/DT
nuts/NNS
and/CC
bolts/NNS
of/IN
practical/JJ
lawyering/NN
,/,
''/''
says/VBZ
Aaron/NNP
Weitz/NNP
,/,
head/NN
of/IN
a/DT
New/NNP
York/NNP
County/NNP
Lawyers/NNP
'/POS
Association/NNP
committee/NN
that/WDT
sponsors/VBZ
such/PDT
a/DT
course/NN
./.
In/IN
the/DT
past/NN
,/,
associates/NNS
learned/VBD
the/DT
basics/NNS
from/IN
senior/JJ
lawyers/NNS
who/WP
acted/VBD
as/IN
mentors/NNS
./.
But/CC
these/DT
days/NNS
,/,
large/JJ
firms/NNS
hire/VBP
as/RB
many/JJ
as/IN
30/CD
new/JJ
associates/NNS
a/DT
year/NN
,/,
and/CC
it/PRP
's/VBZ
impossible/JJ
to/TO
personally/RB
train/VB
everyone/NN
,/,
says/VBZ
Joel/NNP
Henning/NNP
of/IN
Hildebrandt/NNP
Inc./NNP
,/,
a/DT
consulting/NN
firm/NN
that/WDT
runs/VBZ
training/NN
classes/NNS
./.
The/DT
Hildebrandt/NNP
course/NN
enables/VBZ
students/NNS
to/TO
brush/VB
up/RB
on/IN
negotiation/NN
skills/NNS
by/IN
role/NN
playing/NN
in/IN
simulated/JJ
deals/NNS
./.
Students/NNS
also/RB
are/VBP
taught/VBN
to/TO
return/VB
clients/NNS
'/POS
phone/NN
calls/NNS
immediately/RB
and/CC
to/TO
treat/VB
the/DT
support/NN
staff/NN
with/IN
respect/NN
./.
Many/JJ
law/NN
firms/NNS
sponsor/VBP
their/PRP$
own/JJ
programs/NNS
./.
At/IN
the/DT
Baltimore/NNP
firm/NN
of/IN
Weinberg/NNP
&/CC
Green/NNP
,/,
new/JJ
corporate/JJ
and/CC
banking/JJ
associates/NNS
are/VBP
required/VBN
to/TO
enroll/VB
in/IN
a/DT
20-class/JJ
course/NN
./.
Partners/NNS
lecture/VBP
on/IN
how/WRB
to/TO
form/VB
corporations/NNS
,/,
draft/NN
agreements/NNS
and/CC
defend/VB
clients/NNS
against/IN
unwanted/JJ
tender/NN
offers/NNS
./.
Now/RB
,/,
clients/NNS
know/VBP
that/IN
new/JJ
associates/NNS
have/VBP
had/VBN
some/DT
practical/JJ
training/NN
before/IN
working/VBG
on/IN
their/PRP$
cases/NNS
,/,
says/VBZ
James/NNP
J./NNP
Hanks/NNP
,/,
a/DT
partner/NN
at/IN
the/DT
firm/NN
./.
Los/NNP
Angeles/NNP
Creates/VBZ
A/DT
Courthouse/NN
for/IN
Kids/NNS
THE/DT
CHILDREN/NNS
of/IN
Los/NNP
Angeles/NNP
will/MD
soon/RB
have/VB
their/PRP$
own/JJ
$/$
52/CD
million/CD
courthouse/NN
./.
The/DT
building/NN
,/,
which/WDT
will/MD
handle/VB
child/NN
abuse/NN
,/,
custody/NN
and/CC
foster/JJ
care/NN
cases/NNS
,/,
will/MD
be/VB
``/``
less/RBR
formal/JJ
,/,
less/RBR
threatening/JJ
and/CC
just/RB
basically/RB
less/RBR
grim/JJ
than/IN
most/JJS
courthouses/NNS
,/,
''/''
says/VBZ
Edmund/NNP
Edelman/NNP
,/,
chairman/NN
of/IN
the/DT
Los/NNP
Angeles/NNP
County/NNP
Board/NNP
of/IN
Supervisors/NNPS
./.
Designs/NNS
call/VBP
for/IN
an/DT
L-shaped/JJ
structure/NN
with/IN
a/DT
playground/NN
in/IN
the/DT
center/NN
./.
There/EX
will/MD
be/VB
recreation/NN
and/CC
movie/NN
rooms/NNS
./.
Teens/NNS
will/MD
be/VB
able/JJ
to/TO
listen/VB
to/TO
music/NN
with/IN
headsets/NNS
./.
Study/NN
halls/NNS
,/,
complete/JJ
with/IN
reference/NN
materials/NNS
,/,
will/MD
be/VB
available/JJ
./.
And/CC
there/EX
will/MD
be/VB
a/DT
nurse/NN
's/POS
station/NN
and/CC
rooms/NNS
for/IN
children/NNS
to/TO
meet/VB
with/IN
social/JJ
workers/NNS
./.
The/DT
building/NN
's/POS
25/CD
courtrooms/NNS
will/MD
be/VB
smaller/JJR
,/,
says/VBZ
Charlene/NNP
Saunders/NNP
,/,
a/DT
court/NN
administrator/NN
./.
The/DT
bench/NN
will/MD
be/VB
lower/JJR
so/IN
the/DT
judge/NN
seems/VBZ
less/RBR
intimidating/JJ
,/,
and/CC
walls/NNS
will/MD
be/VB
painted/VBN
in/IN
bright/JJ
colors/NNS
and/CC
covered/VBN
with/IN
murals/NNS
./.
Cases/NNS
in/IN
Los/NNP
Angeles/NNP
County/NNP
involving/VBG
dependent/JJ
children/NNS
are/VBP
usually/RB
heard/VBN
in/IN
the/DT
Criminal/NNP
Courts/NNPS
Building/NNP
./.
``/``
We/PRP
need/VBP
to/TO
get/VB
the/DT
kids/NNS
away/RB
from/IN
the/DT
criminals/NNS
into/IN
a/DT
less/RBR
traumatic/JJ
environment/NN
,/,
''/''
says/VBZ
Mr./NNP
Edelman/NNP
./.
About/IN
45,000/CD
children/NNS
in/IN
Los/NNP
Angeles/NNP
County/NNP
are/VBP
under/IN
court/NN
supervision/NN
,/,
Mr./NNP
Edelman/NNP
says/VBZ
,/,
and/CC
an/DT
average/NN
of/IN
1,500/CD
new/JJ
children/NNS
are/VBP
added/VBN
each/DT
month/NN
./.
The/DT
courthouse/NN
,/,
to/TO
be/VB
built/VBN
in/IN
Monterey/NNP
Park/NNP
,/,
is/VBZ
expected/VBN
to/TO
open/VB
in/IN
the/DT
spring/NN
of/IN
1992/CD
./.
Law/NN
Firm/NN
Management/NN
Can/MD
Be/VB
Quite/JJ
Rewarding/NN
IT/PRP
PAYS/VBZ
to/TO
follow/VB
a/DT
management/NN
career/NN
path/NN
--/:
even/RB
at/IN
law/NN
firms/NNS
./.
That/DT
's/VBZ
the/DT
conclusion/NN
of/IN
a/DT
recent/JJ
study/NN
of/IN
large/JJ
law/NN
firms/NNS
conducted/VBN
by/IN
Altman/NNP
&/CC
Weil/NNP
Inc./NNP
,/,
an/DT
Ardmore/NNP
,/,
Pa./NNP
,/,
law/NN
firm/NN
consultant/NN
./.
Its/PRP$
survey/NN
of/IN
96/CD
firms/NNS
,/,
each/DT
with/IN
100/CD
to/TO
1,000/CD
lawyers/NNS
,/,
shows/VBZ
that/IN
managing/VBG
partners/NNS
earned/VBD
an/DT
average/NN
of/IN
$/$
395,974/CD
in/IN
compensation/NN
and/CC
cash/NN
benefits/NNS
in/IN
the/DT
firms/NNS
'/POS
1988/CD
fiscal/JJ
years/NNS
./.
Managing/VBG
partners/NNS
who/WP
responded/VBD
to/TO
the/DT
survey/NN
typically/RB
spend/VBP
over/IN
half/PDT
their/PRP$
time/NN
supervising/VBG
their/PRP$
firms/NNS
'/POS
day-to-day/JJ
operations/NNS
and/CC
just/RB
a/DT
little/RB
more/JJR
than/IN
a/DT
third/NN
of/IN
their/PRP$
time/NN
practicing/VBG
law/NN
./.
Partners/NNS
in/IN
the/DT
survey/NN
who/WP
devote/VBP
most/JJS
of/IN
their/PRP$
time/NN
to/TO
practicing/VBG
law/NN
earned/VBD
an/DT
average/NN
of/IN
about/IN
$/$
217,000/CD
./.
Chairman/NNP
Jamie/NNP
Whitten/NNP
D./NNP
,/,
Miss/NNP
./.
the/DT
House/NNP
Appropriations/NNPS
Committee/NNP
proposed/VBD
a/DT
$/$
2.85/CD
billion/CD
emergency/NN
funding/NN
package/NN
to/TO
assist/VB
California/NNP
's/POS
recovery/NN
from/IN
last/JJ
week/NN
's/POS
earthquake/NN
and/CC
extend/VB
further/JJR
aid/NN
to/TO
East/JJ
Coast/JJ
victims/NNS
of/IN
Hurricane/NNP
Hugo/NNP
./.
The/DT
sweeping/JJ
measure/NN
incorporates/VBZ
$/$
500/CD
million/CD
in/IN
small-business/NN
loans/NNS
,/,
$/$
1/CD
billion/CD
in/IN
highway-construction/JJ
funds/NNS
and/CC
$/$
1.25/CD
billion/CD
divided/VBN
between/IN
general/JJ
emergency/NN
assistance/NN
and/CC
a/DT
reserve/NN
to/TO
be/VB
available/JJ
to/TO
President/NNP
Bush/NNP
to/TO
meet/VB
unanticipated/JJ
costs/NNS
from/IN
the/DT
two/CD
disasters/NNS
./.
The/DT
funds/NNS
would/MD
be/VB
attached/VBN
to/TO
a/DT
stop-gap/JJ
spending/NN
bill/NN
required/VBN
to/TO
keep/VB
most/JJS
of/IN
the/DT
government/NN
operating/VBG
past/IN
Wednesday/NNP
./.
The/DT
measure/NN
is/VBZ
scheduled/VBN
to/TO
be/VB
taken/VBN
up/RB
by/IN
the/DT
Appropriations/NNPS
Committee/NNP
today/NN
./.
The/DT
panel/NN
is/VBZ
expected/VBN
to/TO
add/VB
provisions/NNS
waiving/VBG
restrictions/NNS
on/IN
the/DT
use/NN
of/IN
federal/JJ
highway/NN
funds/NNS
and/CC
may/MD
also/RB
shift/VB
money/NN
within/IN
the/DT
package/NN
to/TO
bolster/VB
the/DT
share/NN
for/IN
the/DT
Small/NNP
Business/NNP
Administration/NNP
./.
``/``
We/PRP
will/MD
support/VB
it/PRP
,/,
we/PRP
will/MD
thank/VB
him/PRP
,/,
and/CC
we/PRP
will/MD
augment/VB
it/PRP
where/WRB
appropriate/JJ
,/,
''/''
said/VBD
Rep./NNP
Vic/NNP
Fazio/NNP
D./NNP
,/,
Calif/NNP
./.
Dubbed/VBN
the/DT
``/``
Dire/JJ
Emergency/NN
Supplemental/NN
to/TO
Meet/VB
the/DT
Needs/NNS
of/IN
Natural/JJ
Disasters/NNS
of/IN
National/JJ
Significance/NN
,/,
''/''
the/DT
measure/NN
is/VBZ
vintage/JJ
Whitten/NNP
in/IN
asserting/VBG
federal/JJ
responsibility/NN
and/CC
in/IN
disdaining/VBG
budget/NN
impediments/NNS
./.
``/``
Such/JJ
other/JJ
amounts/NNS
will/MD
be/VB
made/VBN
available/JJ
subsequently/RB
as/IN
required/VBN
,/,
''/''
the/DT
legislation/NN
reads/VBZ
,/,
and/CC
the/DT
new/JJ
obligations/NNS
``/``
shall/MD
not/RB
be/VB
a/DT
charge/NN
against/IN
the/DT
Budget/NNP
Act/NNP
,/,
Gramm-Rudman-Hollings/NNP
,/,
or/CC
other/JJ
ceilings/NNS
./.
''/''
Moody/NNP
's/POS
Investors/NNPS
Service/NNP
Inc./NNP
said/VBD
it/PRP
lowered/VBD
the/DT
ratings/NNS
of/IN
some/DT
$/$
145/CD
million/CD
of/IN
Pinnacle/NNP
debt/NN
because/IN
of/IN
``/``
accelerating/VBG
deficiency/NN
in/IN
liquidity/NN
,/,
''/''
which/WDT
it/PRP
said/VBD
was/VBD
evidenced/VBN
by/IN
Pinnacle/NNP
's/POS
elimination/NN
of/IN
dividend/NN
payments/NNS
./.
Henry/NNP
Sargent/NNP
Jr./NNP
,/,
Pinnacle/NNP
executive/NN
vice/NN
president/NN
,/,
said/VBD
the/DT
action/NN
``/``
wo/MD
n't/RB
really/RB
have/VB
any/DT
effect/NN
on/IN
us/PRP
./.
We/PRP
are/VBP
n't/RB
selling/VBG
bonds/NNS
right/RB
now/RB
,/,
and/CC
I/PRP
do/VBP
n't/RB
think/VB
it/PRP
will/MD
affect/VB
the/DT
value/NN
of/IN
our/PRP$
existing/VBG
bonds/NNS
./.
''/''
The/DT
rating/NN
agency/NN
said/VBD
it/PRP
lowered/VBD
the/DT
ratings/NNS
on/IN
$/$
75/CD
million/CD
of/IN
the/DT
holding/VBG
company/NN
's/POS
convertible/JJ
subordinated/JJ
Eurodebentures/NNS
to/TO
B-3/JJ
from/IN
B-1/JJ
./.
Moody/NNP
's/POS
said/VBD
it/PRP
also/RB
lowered/VBD
the/DT
ratings/NNS
of/IN
$/$
70/CD
million/CD
of/IN
Pinnacle/NNP
's/POS
MeraBank/NNP
thrift/NN
unit/NN
long-term/JJ
deposits/NNS
to/TO
B-3/JJ
from/IN
B-2/JJ
,/,
and/CC
on/IN
its/PRP$
subordinated/JJ
debt/NN
to/TO
Ca/JJ
from/IN
Caa/JJ
./.
MeraBank/NNP
's/POS
rating/NN
for/IN
short-term/JJ
deposits/NNS
remains/VBZ
Not/RB
Prime/JJ
./.
Securities/NNS
of/IN
MeraBank/NNP
were/VBD
placed/VBN
under/IN
review/NN
last/JJ
May/MD
,/,
and/CC
will/MD
remain/VB
under/IN
review/NN
for/IN
downgrade/NN
,/,
the/DT
agency/NN
said/VBD
./.
First/RB
,/,
the/DT
somewhat/RB
affected/JJ
idealism/NN
of/IN
the/DT
1960s/NNS
./.
Then/RB
,/,
the/DT
all-too-sincere/JJ
opportunism/NN
of/IN
the/DT
1970s/NNS
and/CC
1980s/NNS
./.
What/WP
now/RB
?/.
To/TO
judge/VB
from/IN
novels/NNS
that/WDT
mirror/VBP
the/DT
contemporary/JJ
scene/NN
,/,
we/PRP
're/VBP
back/RB
in/IN
the/DT
age/NN
of/IN
anxiety/NN
./.
Where/WRB
'60s/NNS
dropouts/NNS
professed/VBD
to/TO
scorn/VB
middle-class/NN
life/NN
and/CC
ambitious/JJ
yuppies/NNS
hoped/VBD
to/TO
leave/VB
it/PRP
far/RB
behind/RB
as/IN
they/PRP
scaled/VBD
the/DT
upper/JJ
reaches/NNS
of/IN
success/NN
,/,
it/PRP
now/RB
seems/VBZ
that/IN
so/RB
many/JJ
people/NNS
feel/VBP
they/PRP
're/VBP
slipping/VBG
between/IN
the/DT
cracks/NNS
,/,
that/IN
middle-class/NN
life/NN
is/VBZ
viewed/VBN
with/IN
nostalgia/NN
or/CC
outright/JJ
longing/NN
./.
Lisa/NNP
Zeidner/NNP
's/POS
third/JJ
novel/NN
,/,
``/``
Limited/JJ
Partnerships/NNS
''/''
(/(
North/NNP
Point/NNP
Press/NNP
,/,
256/CD
pages/NNS
,/,
$/$
18.95/CD
a/DT
stylish/JJ
,/,
funny/JJ
and/CC
thoughtful/JJ
look/NN
at/IN
the/DT
way/NN
love/NN
relationships/NNS
are/VBP
affected/JJ
by/IN
the/DT
pressures/NNS
of/IN
money/NN
,/,
or/CC
,/,
more/RBR
specifically/RB
,/,
the/DT
lack/NN
of/IN
it/PRP
./.
Nora/NNP
Worth/NNP
and/CC
Malcolm/NNP
DeWitt/NNP
,/,
33/CD
and/CC
39/CD
respectively/RB
,/,
live/VBP
together/RB
in/IN
a/DT
townhouse/NN
in/IN
a/DT
transitional/JJ
Philadelphia/NNP
neighborhood/NN
./.
Malcolm/NNP
,/,
a/DT
former/JJ
film-maker/NN
turned/VBD
architect/NN
,/,
has/VBZ
just/RB
seen/VBN
his/PRP$
first/JJ
big/JJ
chance/NN
at/IN
a/DT
lucrative/JJ
commission/NN
turn/VB
to/TO
dust/NN
with/IN
the/DT
arrest/NN
of/IN
his/PRP$
shady/JJ
,/,
obnoxious/JJ
client/NN
,/,
a/DT
fly-by-night/JJ
real/JJ
estate/NN
developer/NN
./.
Nora/NNP
,/,
who/WP
still/RB
has/VBZ
artistic/JJ
aspirations/NNS
,/,
knows/VBZ
she/PRP
is/VBZ
lucky/JJ
to/TO
be/VB
working/VBG
as/IN
a/DT
food/NN
stylist/NN
,/,
prepping/VBG
pies/NNS
,/,
burgers/NNS
,/,
frosty/JJ
cold/JJ
drinks/NNS
and/CC
other/JJ
comestibles/NNS
to/TO
look/VB
as/RB
appetizing/JJ
as/IN
possible/JJ
in/IN
front/NN
of/IN
the/DT
camera/NN
./.
After/IN
all/DT
,/,
she/PRP
reasons/VBZ
,/,
``/``
there/EX
were/VBD
housewives/NNS
with/IN
Nikons/NNPS
and/CC
degrees/NNS
from/IN
cooking/NN
schools/NNS
in/IN
France/NNP
who/WP
would/MD
kill/VB
for/IN
her/PRP$
job/NN
./.
''/''
But/CC
Nora/NNP
and/CC
Malcolm/NNP
feel/VBP
trapped/JJ
./.
They/PRP
seem/VBP
to/TO
be/VB
having/VBG
the/DT
``/``
worst/JJS
of/IN
both/DT
worlds/NNS
:/:
artistic/JJ
work/NN
with/IN
none/NN
of/IN
art/NN
's/POS
integrity/NN
and/CC
no/DT
control/NN
over/IN
the/DT
finished/JJ
product/NN
;/:
self-employment/NN
without/IN
fun/NN
or/CC
profit/NN
./.
''/''
It/PRP
's/VBZ
a/DT
downbeat/NN
,/,
``/``
thirtysomething/JJ
''/''
world/NN
,/,
in/IN
which/WDT
bright/JJ
,/,
still/RB
youngish/JJ
people/NNS
are/VBP
engaged/VBN
in/IN
a/DT
glossy/JJ
version/NN
of/IN
day/NN
labor/NN
,/,
doing/VBG
free-lance/JJ
,/,
semi-professional/JJ
work/NN
that/WDT
brings/VBZ
little/JJ
satisfaction/NN
or/CC
security/NN
but/CC
that/WDT
they/PRP
know/VBP
they/PRP
should/MD
be/VB
grateful/JJ
to/TO
do/VB
./.
Uncertainty/NN
dogs/VBZ
every/DT
aspect/NN
of/IN
their/PRP$
lives/NNS
./.
Malcolm/NN
faces/VBZ
bankruptcy/NN
and/CC
an/DT
IRS/NNP
audit/NN
,/,
but/CC
Nora/NNP
finds/VBZ
an/DT
extra/JJ
$/$
30,000/CD
in/IN
her/PRP$
bank/NN
account/NN
,/,
suddenly/RB
increasing/VBG
her/PRP$
available/JJ
funds/NNS
some/DT
fifteenfold/RB
./.
While/IN
she/PRP
is/VBZ
wondering/VBG
whether/IN
to/TO
live/VB
it/PRP
up/RB
,/,
and/CC
do/VB
something/NN
even/RB
more/RBR
dramatic/JJ
,/,
say/VB
get/VB
married/VBN
,/,
her/PRP$
life/NN
is/VBZ
further/RBR
complicated/JJ
by/IN
the/DT
reappearance/NN
of/IN
an/DT
old/JJ
flame/NN
,/,
David/NNP
,/,
a/DT
film/NN
critic/NN
and/CC
actor/NN
who/WP
always/RB
seems/VBZ
to/TO
be/VB
just/JJ
on/IN
the/DT
brink/NN
of/IN
stardom/NN
./.
In/IN
novels/NNS
of/IN
an/DT
earlier/JJR
vintage/NN
,/,
David/NNP
would/MD
have/VB
represented/VBN
excitement/NN
and/CC
danger/NN
;/:
Malcolm/NNP
,/,
placid/JJ
,/,
middle-class/NN
security/NN
./.
The/DT
irony/NN
in/IN
this/DT
novel/NN
is/VBZ
that/IN
neither/DT
man/NN
represents/VBZ
a/DT
``/``
safe/JJ
''/''
middle-class/NN
haven/NN
:/:
Nora/NNP
's/POS
decision/NN
is/VBZ
between/IN
emotional/JJ
excitement/NN
and/CC
emotional/JJ
security/NN
,/,
with/IN
no/DT
firm/JJ
economic/JJ
base/NN
anywhere/RB
./.
The/DT
characters/NNS
confront/VBP
a/DT
world/NN
in/IN
which/WDT
it/PRP
seems/VBZ
increasingly/RB
difficult/JJ
to/TO
find/VB
a/DT
``/``
middle/JJ
way/NN
''/''
between/IN
the/DT
extremes/NNS
of/IN
success/NN
and/CC
failure/NN
,/,
wealth/NN
and/CC
poverty/NN
./.
In/IN
making/VBG
Malcolm/NNP
and/CC
Nora/NNP
such/JJ
wonderfully/RB
representative/JJ
specimens/NNS
of/IN
their/PRP$
class/NN
and/CC
generation/NN
,/,
Ms./NNP
Zeidner/NNP
has/VBZ
somewhat/RB
neglected/VBN
the/DT
task/NN
of/IN
making/VBG
them/PRP
distinctively/RB
individual/JJ
characters/NNS
./.
The/DT
humor/NN
of/IN
the/DT
story/NN
owes/VBZ
much/JJ
to/TO
the/DT
fact/NN
that/IN
no/DT
hearts/NNS
the/DT
characters/NNS
'/POS
own/JJ
the/DT
plight/NN
of/IN
health-food/NN
eaters/NNS
./.
But/CC
readers/NNS
may/MD
well/RB
feel/VB
the/DT
pangs/NNS
of/IN
recognition/NN
./.
In/IN
any/DT
case/NN
,/,
the/DT
foundering/JJ
middle/JJ
classes/NNS
are/VBP
n't/RB
the/DT
only/JJ
ones/NNS
in/IN
trouble/NN
--/:
or/CC
whose/WP$
troubles/NNS
provide/VBP
material/NN
for/IN
fiction/NN
./.
``/``
Rascal/NN
Money/NN
''/''
(/(
Contemporary/NNP
Books/NNPS
,/,
412/CD
pages/NNS
,/,
$/$
17.95/CD
a/DT
novel/NN
by/IN
consultant/NN
and/CC
business/NN
analyst/NN
Joseph/NNP
R./NNP
Garber/NNP
,/,
tells/VBZ
the/DT
story/NN
of/IN
an/DT
innovative/JJ
,/,
well-run/JJ
,/,
widely/RB
respected/JJ
computer/NN
manufacturing/VBG
company/NN
called/VBD
PegaSys/NNP
as/IN
it/PRP
faces/VBZ
a/DT
hostile/JJ
takeover/NN
attempt/NN
by/IN
AIW/NNP
,/,
a/DT
much/RB
smaller/JJR
corporation/NN
that/WDT
is/VBZ
so/RB
incompetently/RB
managed/VBN
as/IN
to/TO
constitute/VB
a/DT
standing/JJ
joke/NN
in/IN
the/DT
business/NN
world/NN
./.
Patrician/NN
,/,
dynamic/JJ
Scott/NNP
Thatcher/NNP
,/,
founder/NN
and/CC
head/NN
of/IN
PegaSys/NNP
,/,
initially/RB
finds/VBZ
the/DT
takeover/NN
threat/NN
risible/JJ
./.
But/CC
,/,
as/IN
he/PRP
and/CC
his/PRP$
skilled/JJ
team/NN
soon/RB
discover/VBP
,/,
they/PRP
're/VBP
up/IN
against/IN
two/CD
factors/NNS
they/PRP
had/VBD
n't/RB
counted/VBN
on/IN
:/:
first/LS
,/,
a/DT
business/NN
climate/NN
in/IN
which/WDT
a/DT
failing/VBG
company/NN
with/IN
few/JJ
assets/NNS
and/CC
many/JJ
debts/NNS
can/MD
borrow/VB
against/IN
the/DT
assets/NNS
of/IN
the/DT
successful/JJ
company/NN
it/PRP
hopes/VBZ
to/TO
acquire/VB
in/IN
order/NN
to/TO
finance/VB
the/DT
takeover/NN
;/:
second/LS
,/,
that/IN
standing/VBG
behind/IN
AIW/NNP
is/VBZ
a/DT
sinister/JJ
consortium/NN
of/IN
much/RB
bigger/JJR
,/,
shadier/JJR
and/CC
shrewder/JJR
foreign/JJ
interests/NNS
secretly/RB
providing/VBG
the/DT
money/NN
and/CC
muscle/NN
for/IN
the/DT
deal/NN
./.
Mr./NNP
Garber/NNP
manages/VBZ
to/TO
invest/VB
this/DT
tale/NN
of/IN
financial/JJ
wars/NNS
with/IN
the/DT
colorful/JJ
characters/NNS
and/CC
fast-paced/JJ
action/NN
of/IN
a/DT
suspense/NN
novel/NN
./.
And/CC
like/IN
a/DT
spy/NN
or/CC
mystery/NN
story/NN
,/,
this/DT
novel/NN
has/VBZ
strong/JJ
elements/NNS
of/IN
allegory/NN
,/,
as/IN
the/DT
good/JJ
and/CC
evil/JJ
forces/NNS
battle/VBP
it/PRP
out/RP
./.
Mr./NNP
Garber/NNP
depicts/VBZ
these/DT
moral/JJ
qualities/NNS
with/IN
the/DT
broad/JJ
brush/NN
strokes/NNS
of/IN
a/DT
satire/NN
that/WDT
occasionally/RB
descends/VBZ
to/TO
the/DT
realm/NN
of/IN
cliched/JJ
caricatures/NNS
./.
Standard-issue/JJ
portraits/NNS
of/IN
flaky/JJ
Californians/NNPS
,/,
snobbish/JJ
homosexuals/NNS
and/CC
Neanderthal/JJ
union/NN
leaders/NNS
undermine/VBP
the/DT
force/NN
of/IN
the/DT
author/NN
's/POS
perceptions/NNS
./.
Yet/RB
the/DT
heavy-handedness/NN
of/IN
the/DT
satire/NN
also/RB
can/MD
be/VB
effective/JJ
in/IN
a/DT
book/NN
like/IN
this/DT
:/:
If/IN
the/DT
head/NN
of/IN
AIW/NNP
were/VBD
not/RB
portrayed/VBN
as/IN
an/DT
utterly/RB
contemptible/JJ
,/,
malicious/JJ
dolt/NN
,/,
we/PRP
would/MD
not/RB
much/RB
care/VB
whether/IN
his/PRP$
schemes/NNS
were/VBD
defeated/VBN
,/,
and/CC
would/MD
not/RB
be/VB
so/RB
diverted/VBN
in/IN
the/DT
process/NN
./.
Ms./NNP
Rubin/NNP
is/VBZ
a/DT
free-lance/JJ
writer/NN
based/VBN
in/IN
Los/NNP
Angeles/NNP
./.
High-definition/JJ
television/NN
promises/VBZ
to/TO
be/VB
the/DT
TV/NN
of/IN
tomorrow/NN
,/,
so/IN
it/PRP
is/VBZ
a/DT
natural/JJ
multibillion-dollar/JJ
market/NN
./.
Although/IN
major/JJ
U.S./NNP
manufacturers/NNS
have/VBP
all/DT
but/CC
ceded/VBN
the/DT
main/JJ
segment/NN
of/IN
that/DT
future/JJ
business/NN
to/TO
Japan/NNP
,/,
not/RB
everyone/NN
here/RB
is/VBZ
ready/JJ
to/TO
give/VB
up/RP
./.
A/DT
handful/NN
of/IN
small/JJ
U.S./NNP
companies/NNS
are/VBP
struggling/VBG
to/TO
develop/VB
the/DT
technology/NN
to/TO
build/VB
the/DT
screens/NNS
for/IN
the/DT
thin/JJ
,/,
high-quality/JJ
televisions/NNS
that/WDT
are/VBP
expected/VBN
to/TO
hang/VB
on/IN
living/JJ
room/NN
walls/NNS
by/IN
the/DT
end/NN
of/IN
the/DT
1990s/NNS
./.
With/IN
only/JJ
small/JJ
help/NN
from/IN
the/DT
government/NN
,/,
these/DT
start-up/JJ
concerns/NNS
are/VBP
trying/VBG
to/TO
compete/VB
with/IN
the/DT
Goliaths/NNPS
of/IN
the/DT
Japanese/JJ
consumer/NN
electronics/NNS
industry/NN
,/,
which/WDT
enjoy/VBP
considerable/JJ
backing/NN
from/IN
the/DT
Japanese/JJ
government/NN
./.
Photonics/NNP
Technology/NNP
Inc./NNP
of/IN
Northwood/NNP
,/,
Ohio/NNP
,/,
aims/VBZ
to/TO
use/VB
a/DT
new/JJ
form/NN
of/IN
plasma/NN
technology/NN
to/TO
put/VB
movie-quality/JJ
images/NNS
on/IN
a/DT
TV/NN
display/NN
that/WDT
is/VBZ
40/CD
inches/NNS
in/IN
diameter/NN
but/CC
only/RB
a/DT
few/JJ
inches/NNS
thick/JJ
./.
Planar/NNP
Systems/NNPS
Inc./NNP
of/IN
Beaverton/NNP
,/,
Ore./NNP
,/,
the/DT
largest/JJS
of/IN
these/DT
firms/NNS
,/,
with/IN
$/$
20/CD
million/CD
in/IN
annual/JJ
revenue/NN
,/,
has/VBZ
similar/JJ
plans/NNS
./.
It/PRP
already/RB
has/VBZ
had/VBN
success/NN
in/IN
electroluminescence/NN
,/,
another/DT
promising/JJ
technology/NN
adaptable/JJ
for/IN
high-definition/JJ
television/NN
./.
Two/CD
other/JJ
firms/NNS
,/,
Ovonic/NNP
Imaging/NNP
Systems/NNPS
Inc./NNP
of/IN
Troy/NNP
,/,
Mich./NNP
,/,
and/CC
Magnascreen/NNP
Corp./NNP
of/IN
Pittsburgh/NNP
are/VBP
developing/VBG
a/DT
variation/NN
of/IN
the/DT
flat-panel/JJ
screens/NNS
called/VBN
active-matrix/JJ
liquid/NN
crystal/NN
displays/NNS
./.
The/DT
new/JJ
technologies/NNS
are/VBP
intended/VBN
to/TO
retire/VB
the/DT
cathode-ray/NN
tube/NN
,/,
which/WDT
accounts/VBZ
for/IN
most/JJS
of/IN
the/DT
bulk/NN
of/IN
the/DT
conventional/JJ
TV/NN
set/NN
./.
Replacing/VBG
the/DT
cathode-ray/NN
tube/NN
with/IN
a/DT
large/JJ
,/,
thin/JJ
screen/NN
is/VBZ
the/DT
key/NN
to/TO
the/DT
creation/NN
of/IN
a/DT
high-definition/JJ
television/NN
,/,
or/CC
HDTV/NN
,/,
which/WDT
is/VBZ
expected/VBN
to/TO
become/VB
a/DT
$/$
30/CD
billion/CD
business/NN
world-wide/JJ
within/IN
a/DT
decade/NN
./.
Large/JJ
U.S./NNP
companies/NNS
are/VBP
interested/JJ
in/IN
other/JJ
segments/NNS
of/IN
the/DT
HDTV/NN
business/NN
,/,
such/JJ
as/IN
signal-processing/NN
and/CC
broadcast/NN
equipment/NN
./.
But/CC
except/IN
for/IN
Zenith/NNP
Electronics/NNPS
Corp./NNP
and/CC
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
,/,
which/WDT
is/VBZ
collaborating/VBG
with/IN
Toshiba/NNP
on/IN
computer/NN
displays/NNS
,/,
they/PRP
are/VBP
poorly/RB
positioned/VBN
to/TO
exploit/VB
advances/NNS
in/IN
large/JJ
panels/NNS
./.
General/NNP
Electric/NNP
Co./NNP
recently/RB
sold/VBD
off/RP
its/PRP$
interests/NNS
in/IN
liquid-crystal/JJ
displays/NNS
to/TO
Thompson-CSF/NNP
of/IN
France/NNP
./.
``/``
We/PRP
found/VBD
the/DT
market/NN
not/RB
developing/VBG
as/IN
we/PRP
thought/VBD
it/PRP
would/MD
,/,
''/''
a/DT
GE/NNP
spokesman/NN
says/VBZ
./.
The/DT
small/JJ
U.S./NNP
firms/NNS
are/VBP
persisting/VBG
because/IN
of/IN
their/PRP$
strong/JJ
positions/NNS
in/IN
patents/NNS
,/,
and/CC
because/IN
the/DT
prize/NN
is/VBZ
still/RB
there/RB
to/TO
be/VB
seized/VBN
./.
``/``
No/DT
one/NN
yet/RB
has/VBZ
shown/VBN
the/DT
ability/NN
to/TO
manufacture/VB
these/DT
panels/NNS
''/''
at/IN
commercial/JJ
costs/NNS
,/,
says/VBZ
Zvi/NNP
Yaniv/NNP
,/,
the/DT
president/NN
of/IN
Ovonic/NNP
Imaging/NNP
./.
He/PRP
says/VBZ
he/PRP
thinks/VBZ
his/PRP$
company/NN
is/VBZ
just/RB
a/DT
few/JJ
years/NNS
from/IN
doing/VBG
that/DT
./.
The/DT
Bush/NNP
administration/NN
,/,
hearing/VBG
conflicting/JJ
advice/NN
about/IN
what/WP
its/PRP$
role/NN
in/IN
HDTV/NN
should/MD
be/VB
,/,
is/VBZ
n't/RB
doing/VBG
much/JJ
for/IN
now/RB
./.
The/DT
only/JJ
material/NN
support/NN
it/PRP
is/VBZ
extending/VBG
to/TO
the/DT
struggling/JJ
U.S./NNP
industry/NN
is/VBZ
$/$
30/CD
million/CD
in/IN
awards/NNS
from/IN
the/DT
Pentagon/NNP
's/POS
Defense/NNP
Advanced/NNP
Research/NNP
Projects/NNP
Agency/NNP
./.
The/DT
DARPA/NNP
funds/NNS
are/VBP
a/DT
pittance/NN
compared/VBN
with/IN
what/WP
Japan/NNP
and/CC
other/JJ
prospective/JJ
competitors/NNS
are/VBP
spending/VBG
./.
The/DT
Commerce/NNP
Department/NNP
estimates/VBZ
that/IN
Japanese/JJ
government/NN
and/CC
industry/NN
spending/NN
on/IN
HDTV/NN
research/NN
is/VBZ
already/RB
over/IN
$/$
1/CD
billion/CD
./.
``/``
Unless/IN
it/PRP
gets/VBZ
more/JJR
help/NN
,/,
the/DT
U.S./NNP
industry/NN
wo/MD
n't/RB
have/VB
a/DT
chance/NN
,/,
''/''
says/VBZ
Peter/NNP
Friedman/NNP
,/,
Photonics/NNP
's/POS
executive/NN
vice/NN
president/NN
./.
Thus/RB
far/RB
,/,
almost/RB
all/DT
of/IN
the/DT
basic/JJ
technology/NN
relating/VBG
to/TO
high-definition/JJ
television/NN
has/VBZ
come/VBN
from/IN
U.S./NNP
laboratories/NNS
./.
But/CC
Peter/NNP
Brody/NNP
,/,
Magnascreen/NNP
's/POS
president/NN
,/,
says/VBZ
Japanese/JJ
companies/NNS
are/VBP
poised/VBN
to/TO
snatch/VB
the/DT
technology/NN
and/CC
put/VBD
it/PRP
to/TO
commercial/JJ
use/NN
,/,
just/RB
as/IN
they/PRP
did/VBD
with/IN
earlier/JJR
U.S./NNP
innovations/NNS
in/IN
color/NN
television/NN
and/CC
video/NN
recording/NN
./.
In/IN
the/DT
1970s/NNS
,/,
Mr./NNP
Brody/NNP
helped/VBD
develop/VB
the/DT
first/JJ
display/NN
panels/NNS
based/VBN
on/IN
active-matrix/NN
liquid/NN
crystals/NNS
at/IN
Westinghouse/NNP
Electric/NNP
Corp./NNP
's/POS
research/NN
labs/NNS
in/IN
Pittsburgh/NNP
./.
The/DT
panels/NNS
are/VBP
like/IN
oversized/JJ
semiconductors/NNS
surfaced/VBN
with/IN
a/DT
million/CD
or/CC
more/JJR
picture/NN
elements/NNS
,/,
each/DT
contributing/VBG
to/TO
the/DT
color/NN
and/CC
tone/NN
of/IN
a/DT
TV/NN
image/NN
./.
In/IN
1979/CD
,/,
however/RB
,/,
Westinghouse/NNP
abandoned/VBD
the/DT
project/NN
along/IN
with/IN
its/PRP$
stake/NN
in/IN
advanced/JJ
television/NN
./.
Mr./NNP
Brody/NNP
left/VBD
the/DT
company/NN
to/TO
find/VB
other/JJ
backers/NNS
./.
He/PRP
has/VBZ
a/DT
claim/NN
to/TO
the/DT
right/NN
to/TO
commercialize/VB
the/DT
Westinghouse/NNP
patents/NNS
,/,
but/CC
he/PRP
contends/VBZ
that/IN
those/DT
patents/NNS
are/VBP
being/VBG
infringed/VBN
by/IN
a/DT
number/NN
of/IN
Japanese/JJ
producers/NNS
./.
``/``
Most/JJS
American/JJ
investors/NNS
have/VBP
just/RB
given/VBN
up/RP
,/,
''/''
Mr./NNP
Brody/NNP
says/VBZ
./.
``/``
They/PRP
are/VBP
n't/RB
prepared/JJ
to/TO
compete/VB
in/IN
an/DT
area/NN
where/WRB
the/DT
Japanese/NNPS
want/VBP
to/TO
enter/VB
./.
''/''
Many/JJ
critics/NNS
question/VBP
the/DT
industry/NN
's/POS
need/NN
for/IN
federal/JJ
support/NN
;/:
the/DT
Pentagon/NNP
justifies/VBZ
its/PRP$
help/NN
on/IN
national-security/NN
grounds/NNS
./.
``/``
We/PRP
do/VBP
n't/RB
see/VB
a/DT
domestic/JJ
source/NN
for/IN
some/DT
of/IN
our/PRP$
HDTV/NN
requirements/NNS
,/,
and/CC
that/DT
's/VBZ
a/DT
source/NN
of/IN
concern/NN
,/,
''/''
says/VBZ
Michael/NNP
Kelly/NNP
,/,
director/NN
of/IN
DARPA/NNP
's/POS
defense/NN
manufacturing/NN
office/NN
./.
So/RB
DARPA/NNP
is/VBZ
trying/VBG
to/TO
keep/VB
the/DT
industry/NN
interested/JJ
in/IN
developing/VBG
large/JJ
display/NN
panels/NNS
by/IN
doling/VBG
out/RP
research/NN
funds/NNS
./.
HDTV/NN
already/RB
has/VBZ
some/DT
military/JJ
applications/NNS
,/,
such/JJ
as/IN
creating/VBG
realistic/JJ
flight/NN
simulations/NNS
and/CC
transmitting/VBG
information/NN
to/TO
combat/NN
commanders/NNS
./.
The/DT
Navy/NNP
is/VBZ
ordering/VBG
displays/NNS
for/IN
its/PRP$
Aegis/NNP
cruisers/NNS
and/CC
the/DT
Army/NNP
wants/VBZ
smaller/JJR
versions/NNS
for/IN
its/PRP$
Abrams/NNP
battle/NN
tanks/NNS
./.
The/DT
Commerce/NNP
Department/NNP
also/RB
is/VBZ
trying/VBG
to/TO
encourage/VB
HDTV/NN
because/IN
of/IN
the/DT
benefits/NNS
that/WDT
could/MD
spin/VB
off/RB
to/TO
the/DT
semiconductor/NN
and/CC
computer/NN
industries/NNS
./.
``/``
It/PRP
is/VBZ
n't/RB
just/RB
yuppie/NN
television/NN
,/,
''/''
argues/VBZ
Jack/NNP
Clifford/NNP
,/,
director/NN
of/IN
the/DT
department/NN
's/POS
office/NN
of/IN
microelectronics/NNS
and/CC
instrumentation/NN
./.
``/``
The/DT
industry/NN
will/MD
create/VB
industrial/JJ
products/NNS
such/JJ
as/IN
displays/NNS
for/IN
work/NN
stations/NNS
and/CC
medical/JJ
diagnostic/JJ
equipment/NN
before/IN
it/PRP
acquires/VBZ
a/DT
mass/NN
consumer/NN
market/NN
./.
''/''
Although/IN
some/DT
HDTV/NN
advocates/NNS
are/VBP
calling/VBG
for/IN
other/JJ
forms/NNS
of/IN
aid/NN
,/,
such/JJ
as/IN
antitrust/JJ
relief/NN
for/IN
research/NN
consortia/NN
,/,
the/DT
small/JJ
firms/NNS
simply/RB
would/MD
prefer/VB
more/JJR
DARPA/NNP
funds/NNS
./.
Each/DT
claims/VBZ
to/TO
possess/VB
the/DT
right/JJ
technology/NN
and/CC
wants/VBZ
just/RB
a/DT
bit/RB
more/JJR
money/NN
to/TO
make/VB
it/PRP
commercial/JJ
./.
They/PRP
also/RB
want/VBP
U.S./NNP
trade/NN
policy/NN
to/TO
reflect/VB
the/DT
Pentagon/NNP
and/CC
Commerce/NNP
department/NN
's/POS
concern/NN
over/IN
their/PRP$
future/NN
./.
They/PRP
all/DT
are/VBP
strongly/RB
opposed/JJ
to/TO
a/DT
petition/NN
from/IN
several/JJ
Japanese/JJ
TV/NN
manufacturers/NNS
,/,
including/VBG
Matsushita/NNP
,/,
Hitachi/NNP
,/,
and/CC
Toshiba/NNP
,/,
to/TO
exempt/VB
portable/JJ
color/NN
TVs/NNS
with/IN
liquid-crystal/JJ
displays/NNS
from/IN
anti-dumping/JJ
duties/NNS
that/IN
the/DT
U.S./NNP
imposes/VBZ
on/IN
the/DT
larger/JJR
Japanese/JJ
color/NN
TVs/NNS
./.
And/CC
they/PRP
want/VBP
the/DT
U.S./NNP
to/TO
help/VB
them/PRP
sell/VB
overseas/RB
./.
Planar/NNP
President/NNP
James/NNP
Hurd/NNP
says/VBZ
he/PRP
has/VBZ
to/TO
pay/VB
tariffs/NNS
as/RB
high/JJ
as/IN
15/CD
%/NN
to/TO
sell/VB
his/PRP$
display/NN
panels/NNS
in/IN
Japan/NNP
and/CC
South/NNP
Korea/NNP
,/,
while/IN
panels/NNS
from/IN
those/DT
countries/NNS
enter/VBP
the/DT
U.S./NNP
duty-free/JJ
./.
``/``
This/DT
is/VBZ
n't/RB
a/DT
technology/NN
issue/NN
,/,
but/CC
an/DT
attitude/NN
issue/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
We/PRP
just/RB
have/VBP
n't/RB
learned/VBN
what/WP
it/PRP
takes/VBZ
to/TO
compete/VB
./.
''/''
Burmah/NNP
Oil/NNP
PLC/NNP
,/,
a/DT
British/JJ
independent/JJ
oil/NN
and/CC
specialty-chemicals/NNS
marketing/NN
concern/NN
,/,
said/VBD
SHV/NNP
Holdings/NNP
N.V./NNP
has/VBZ
built/VBN
up/RP
a/DT
7.5/CD
%/NN
stake/NN
in/IN
the/DT
company/NN
./.
The/DT
holding/NN
of/IN
13.6/CD
million/CD
shares/NNS
is/VBZ
up/RB
from/IN
a/DT
6.7/CD
%/NN
stake/NN
that/DT
Burmah/NNP
announced/VBD
SHV/NNP
held/VBD
as/IN
of/IN
last/JJ
Monday/NNP
./.
SHV/NNP
,/,
of/IN
the/DT
Netherlands/NNP
,/,
which/WDT
last/JJ
year/NN
merged/VBD
its/PRP$
North/NNP
Sea/NNP
oil/NN
and/CC
gas/NN
operations/NNS
with/IN
those/DT
of/IN
Calor/NNP
Group/NNP
PLC/NNP
and/CC
which/WDT
owns/VBZ
40/CD
%/NN
of/IN
Calor/NNP
,/,
was/VBD
identified/VBN
as/IN
a/DT
possible/JJ
suitor/NN
for/IN
Burmah/NNP
./.
Burmah/NNP
said/VBD
it/PRP
had/VBD
n't/RB
held/VBN
any/DT
discussions/NNS
with/IN
SHV/NNP
and/CC
that/IN
``/``
no/DT
deal/NN
of/IN
any/DT
nature/NN
is/VBZ
in/IN
contemplation/NN
./.
''/''
The/DT
top/JJ
state/NN
environmental/JJ
official/NN
in/IN
Massachusetts/NNP
said/VBD
Clean/NNP
Harbors/NNPS
Inc./NNP
's/POS
environmental-impact/JJ
statement/NN
for/IN
a/DT
proposed/VBN
incinerator/NN
in/IN
Braintree/NNP
was/VBD
inadequate/JJ
./.
The/DT
official/NN
,/,
John/NNP
DeVillars/NNP
,/,
asked/VBD
Clean/NNP
Harbors/NNPS
for/IN
more/JJR
information/NN
before/IN
ruling/VBG
on/IN
a/DT
permit/NN
for/IN
the/DT
site/NN
./.
Critics/NNS
of/IN
the/DT
plan/NN
,/,
including/VBG
the/DT
town/NN
of/IN
Braintree/NNP
,/,
say/VBP
the/DT
incinerator/NN
is/VBZ
a/DT
health/NN
hazard/NN
./.
Clean/NNP
Harbors/NNPS
,/,
based/VBN
in/IN
Quincy/NNP
,/,
said/VBD
it/PRP
``/``
will/MD
proceed/VB
expeditiously/RB
''/''
to/TO
submit/VB
the/DT
data/NNS|NN
requested/VBN
./.
Alan/NNP
McKim/NNP
,/,
chief/JJ
executive/NN
officer/NN
of/IN
Clean/NNP
Harbors/NNPS
said/VBD
he/PRP
was/VBD
``/``
very/RB
much/RB
encouraged/JJ
''/''
by/IN
the/DT
official/NN
's/POS
praise/NN
of/IN
Clean/NNP
Harbors/NNPS
for/IN
the/DT
quality/NN
of/IN
some/DT
of/IN
the/DT
data/NNS
in/IN
the/DT
report/NN
./.
Citizens/NNPS
&/CC
Southern/NNP
Corp./NNP
said/VBD
it/PRP
signed/VBD
a/DT
definitive/JJ
agreement/NN
to/TO
acquire/VB
Security/NNP
Pacific/NNP
Corp./NNP
's/POS
New/NNP
York-based/JJ
factoring/NN
unit/NN
./.
Terms/NNS
of/IN
the/DT
bank/NN
holding/NN
companies/NNS
'/POS
agreement/NN
were/VBD
n't/RB
disclosed/VBN
./.
Factoring/NN
involves/VBZ
the/DT
purchase/NN
and/CC
collection/NN
of/IN
another/DT
company/NN
's/POS
receivables/NN
./.
Citizens/NNPS
,/,
based/VBN
in/IN
Atlanta/NNP
,/,
said/VBD
it/PRP
has/VBZ
about/IN
$/$
4.6/CD
billion/CD
in/IN
factored/JJ
sales/NNS
annually/RB
;/:
the/DT
Security/NNP
Pacific/NNP
unit/NN
has/VBZ
about/IN
$/$
1.8/CD
billion/CD
annually/RB
./.
Security/NNP
Pacific/NNP
's/POS
factoring/NN
business/NN
works/VBZ
with/IN
companies/NNS
in/IN
the/DT
apparel/NN
,/,
textile/NN
and/CC
food/NN
industries/NNS
,/,
among/IN
others/NNS
./.
The/DT
Office/NNP
of/IN
Thrift/NNP
Supervision/NNP
banned/VBD
B.J./NNP
Garman/NNP
,/,
a/DT
former/JJ
director/NN
of/IN
the/DT
failed/VBN
Vision/NNP
Banc/NNP
Savings/NNPS
Association/NNP
of/IN
Kingsville/NNP
,/,
Texas/NNP
,/,
from/IN
working/VBG
in/IN
any/DT
financial/JJ
institution/NN
insured/VBN
by/IN
the/DT
government/NN
./.
The/DT
office/NN
,/,
a/DT
Treasury/NNP
Department/NNP
unit/NN
that/WDT
is/VBZ
the/DT
successor/NN
to/TO
the/DT
Federal/NNP
Home/NNP
Loan/NNP
Bank/NNP
Board/NNP
,/,
said/VBD
this/DT
was/VBD
the/DT
first/JJ
announcement/NN
of/IN
an/DT
enforcement/NN
action/NN
since/IN
this/DT
year/NN
's/POS
thrift-bailout/NN
legislation/NN
ordered/VBD
that/IN
all/DT
such/JJ
actions/NNS
by/IN
federal/JJ
banking/NN
regulators/NNS
be/VB
made/VBN
public/JJ
./.
Generally/RB
,/,
regulators/NNS
have/VBP
n't/RB
announced/VBN
enforcement/NN
actions/NNS
in/IN
the/DT
past/NN
./.
Indeed/RB
,/,
the/DT
OTS/NNP
said/VBD
that/IN
before/IN
the/DT
law/NN
took/VBD
effect/NN
Aug./NNP
9/CD
,/,
it/PRP
banned/VBD
another/DT
``/``
key/JJ
Vision/NNP
Banc/NNP
insider/NN
''/''
from/IN
insured/JJ
financial/JJ
institutions/NNS
./.
That/DT
individual/JJ
was/VBD
n't/RB
identified/VBN
./.
Vision/NNP
Banc/NNP
was/VBD
placed/VBN
in/IN
government/NN
conservatorship/NN
in/IN
March/NNP
,/,
and/CC
it/PRP
operates/VBZ
under/IN
the/DT
control/NN
of/IN
the/DT
Resolution/NNP
Trust/NNP
Corp./NNP
,/,
the/DT
agency/NN
created/VBN
to/TO
sell/VB
or/CC
liquidate/VB
insolvent/JJ
thrifts/NNS
./.
The/DT
OTS/NNP
did/VBD
n't/RB
say/VB
specifically/RB
why/WRB
the/DT
action/NN
was/VBD
taken/VBN
against/IN
Ms./NNP
Garman/NNP
./.
However/RB
,/,
it/PRP
said/VBD
examiners/NNS
found/VBD
a/DT
variety/NN
of/IN
insider/NN
dealings/NNS
at/IN
the/DT
thrift/NN
,/,
including/VBG
``/``
extraordinary/JJ
loan/NN
commissions/NNS
''/''
paid/VBN
to/TO
a/DT
firm/NN
associated/VBN
with/IN
Vision/NNP
Banc/NNP
officials/NNS
,/,
and/CC
loans/NNS
diverted/VBN
through/IN
borrowers/NNS
back/RB
to/TO
the/DT
thrift/NN
officials/NNS
./.
Ms./NNP
Garman/NNP
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
Arizona/NNP
Instrument/NNP
Corp./NNP
said/VBD
it/PRP
expects/VBZ
to/TO
post/VB
a/DT
third-quarter/JJ
net/JJ
loss/NN
of/IN
about/IN
$/$
600,000/CD
,/,
or/CC
25/CD
cents/NNS
to/TO
27/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
net/JJ
income/NN
of/IN
$/$
214,000/CD
,/,
or/CC
10/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
./.
The/DT
Tempe/NNP
,/,
Ariz./NNP
,/,
maker/NN
of/IN
underground/JJ
fuel-storage/NN
systems/NNS
said/VBD
the/DT
most/RBS
recent/JJ
period/NN
was/VBD
affected/VBN
by/IN
customers/NNS
'/POS
problems/NNS
complying/VBG
with/IN
recent/JJ
Environmental/NNP
Protection/NNP
Agency/NNP
regulations/NNS
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
the/DT
company/NN
expects/VBZ
to/TO
post/VB
a/DT
net/JJ
loss/NN
of/IN
about/IN
$/$
879,000/CD
,/,
or/CC
35/CD
cents/NNS
to/TO
40/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
6.5/CD
million/CD
./.
A/DT
year/NN
earlier/RB
,/,
it/PRP
had/VBD
a/DT
loss/NN
of/IN
$/$
199,203/CD
or/CC
nine/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
7.6/CD
million/CD
./.
Growth/NN
is/VBZ
good/JJ
./.
At/IN
least/JJS
,/,
that/DT
's/VBZ
a/DT
theme/NN
emerging/VBG
among/IN
many/JJ
money/NN
managers/NNS
who/WP
are/VBP
anxious/JJ
both/DT
to/TO
preserve/VB
the/DT
handsome/JJ
stock-market/NN
gains/NNS
they/PRP
have/VBP
already/RB
achieved/VBN
this/DT
year/NN
and/CC
to/TO
catch/VB
the/DT
next/JJ
wave/NN
of/IN
above-average/JJ
performers/NNS
./.
They/PRP
are/VBP
starting/VBG
to/TO
buy/VB
growth/NN
stocks/NNS
./.
Remember/VB
them/PRP
?/.
The/DT
upper/JJ
echelon/NN
of/IN
this/DT
group/NN
were/VBD
shares/NNS
of/IN
the/DT
``/``
nifty/JJ
50/CD
''/''
companies/NNS
whose/WP$
profits/NNS
of/IN
the/DT
1960s/NNS
and/CC
early/RB
1970s/NNS
grew/VBD
steadily/RB
,/,
if/IN
not/RB
spectacularly/RB
,/,
through/IN
thick/JJ
and/CC
thin/JJ
./.
That/DT
sort/NN
of/IN
workhorse/NN
performance/NN
sounds/VBZ
made/VBN
to/TO
order/VB
for/IN
a/DT
time/NN
when/WRB
corporate/JJ
profits/NNS
overall/RB
have/VB
been/VBN
weakening/VBG
from/IN
the/DT
brisk/JJ
increases/NNS
of/IN
recent/JJ
years/NNS
./.
The/DT
current/JJ
flood/NN
of/IN
third-quarter/NN
reports/NNS
are/VBP
producing/VBG
many/RB
more/JJR
negative/JJ
surprises/NNS
than/IN
positive/JJ
ones/NNS
./.
Those/DT
are/VBP
unwelcome/JJ
trends/NNS
in/IN
a/DT
year/NN
that/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
has/VBZ
risen/VBN
23/CD
%/NN
so/RB
far/RB
,/,
even/RB
with/IN
the/DT
190.58-point/JJ
plunge/NN
on/IN
Oct./NNP
13/CD
;/:
broader/JJR
market/NN
measures/NNS
are/VBP
in/IN
the/DT
same/JJ
neighborhood/NN
./.
The/DT
question/NN
for/IN
investors/NNS
is/VBZ
,/,
how/WRB
to/TO
protect/VB
these/DT
returns/NNS
and/CC
yet/RB
reach/VB
a/DT
little/RB
for/IN
additional/JJ
gains/NNS
./.
That/DT
's/VBZ
the/DT
path/NN
of/IN
reasoning/NN
leading/VBG
to/TO
growth/NN
stocks/NNS
./.
``/``
I/PRP
think/VBP
it/PRP
is/VBZ
a/DT
good/JJ
theme/NN
for/IN
what/WP
looks/VBZ
to/TO
be/VB
an/DT
uncertain/JJ
market/NN
,/,
''/''
says/VBZ
Steven/NNP
Einhorn/NNP
,/,
partner/NN
at/IN
Goldman/NNP
Sachs/NNP
./.
Growth/NN
stocks/NNS
may/MD
be/VB
as/RB
big/JJ
as/IN
Philip/NNP
Morris/NNP
or/CC
medium-sized/JJ
such/JJ
as/IN
Circuit/NNP
City/NNP
Stores/NNPS
,/,
but/CC
their/PRP$
common/JJ
characteristic/NN
is/VBZ
a/DT
history/NN
of/IN
increasing/VBG
profits/NNS
on/IN
the/DT
order/NN
of/IN
at/IN
least/JJS
15/CD
%/NN
to/TO
20/CD
%/NN
a/DT
year/NN
,/,
money/NN
managers/NNS
say/VBP
./.
``/``
The/DT
period/NN
when/WRB
growth/NN
stocks/NNS
should/MD
be/VB
performing/VBG
well/RB
is/VBZ
when/WRB
their/PRP$
earnings/NNS
are/VBP
growing/VBG
at/IN
a/DT
superior/JJ
rate/NN
to/TO
the/DT
general/JJ
level/NN
of/IN
corporate/JJ
profits/NNS
,/,
''/''
says/VBZ
Stephen/NNP
Boesel/NNP
,/,
president/NN
of/IN
T./NNP
Rowe/NNP
Price/NNP
's/POS
Growth/NNP
and/CC
Income/NNP
Fund/NNP
./.
Growth/NN
stocks/NNS
also/RB
are/VBP
attractive/JJ
in/IN
periods/NNS
of/IN
market/NN
volatility/NN
,/,
which/WDT
many/JJ
investors/NNS
and/CC
analysts/NNS
expect/VBP
in/IN
the/DT
weeks/NNS
ahead/RB
as/IN
everybody/NN
tries/VBZ
to/TO
discern/VB
where/WRB
the/DT
economy/NN
is/VBZ
heading/VBG
./.
This/DT
kind/NN
of/IN
jumpy/JJ
uncertainty/NN
reminds/VBZ
John/NNP
Calverley/NNP
,/,
senior/JJ
economist/NN
for/IN
American/NNP
Express/NNP
Bank/NNP
,/,
of/IN
the/DT
1969-72/CD
period/NN
,/,
when/WRB
the/DT
industrial/JJ
average/NN
rolled/VBD
through/IN
huge/JJ
ranges/NNS
and/CC
investors/NNS
flocked/VBD
to/TO
the/DT
shares/NNS
of/IN
companies/NNS
with/IN
proven/JJ
earnings/NNS
records/NNS
,/,
which/WDT
became/VBD
known/JJ
as/IN
the/DT
``/``
nifty/JJ
50/CD
./.
''/''
And/CC
they/PRP
will/MD
again/RB
,/,
say/VBP
money-manager/NN
proponents/NNS
of/IN
the/DT
growth-stock/JJ
theme/NN
./.
Cabanne/NNP
Smith/NNP
,/,
president/NN
of/IN
a/DT
money/NN
management/NN
company/NN
bearing/VBG
his/PRP$
name/NN
,/,
predicts/VBZ
that/IN
investment/NN
companies/NNS
using/VBG
computers/NNS
to/TO
identify/VB
companies/NNS
with/IN
earnings/NNS
``/``
momentum/NN
''/''
will/MD
climb/VB
on/IN
the/DT
growth-stock/NN
bandwagon/NN
as/IN
the/DT
overall/JJ
corporate/JJ
earnings/NNS
outlook/NN
deteriorates/VBZ
further/RBR
./.
He/PRP
also/RB
thinks/VBZ
foreign/JJ
investors/NNS
,/,
who/WP
are/VBP
showing/VBG
signs/NNS
of/IN
more/RBR
discriminate/JJ
investing/NN
,/,
will/MD
join/VB
the/DT
pursuit/NN
and/CC
pump/VB
up/RP
prices/NNS
./.
``/``
We/PRP
're/VBP
just/RB
seeing/VBG
the/DT
beginning/NN
of/IN
a/DT
shift/NN
,/,
''/''
Mr./NNP
Smith/NNP
says/VBZ
./.
Mr./NNP
Smith/NNP
recommends/VBZ
Cypress/NNP
Semiconductor/NNP
that/WDT
is/VBZ
currently/RB
showing/VBG
a/DT
robust/JJ
63/CD
%/NN
earnings/NNS
growth/NN
rate/NN
./.
Ronald/NNP
Sloan/NNP
,/,
executive/NN
vice/NN
president/NN
of/IN
Siebel/NNP
Capital/NNP
Management/NNP
,/,
likes/VBZ
Wellman/NNP
Inc./NNP
,/,
a/DT
company/NN
that/WDT
recycles/VBZ
plastic/NN
into/IN
synthetic/NN
fibers/NNS
for/IN
carpeting/NN
./.
Mr./NNP
Sloan/NNP
praises/VBZ
the/DT
company/NN
as/IN
recession/NN
resistant/NN
and/CC
notes/NNS
that/IN
it/PRP
has/VBZ
an/DT
annual/JJ
earnings/NNS
growth/NN
rate/NN
of/IN
32/CD
%/NN
a/DT
year/NN
over/IN
the/DT
past/JJ
five/CD
years/NNS
./.
Wellman/NNP
stock/NN
closed/VBN
Friday/NNP
at/IN
39/CD
3\/8/CD
,/,
up/RB
1\/8/CD
;/:
Mr./NNP
Sloan/NNP
thinks/VBZ
that/IN
in/IN
a/DT
year/NN
it/PRP
could/MD
hit/VB
60/CD
./.
Others/NNS
preach/VBP
the/DT
gospel/NN
of/IN
buying/VBG
only/JJ
blue-chip/JJ
growth/NN
stocks/NNS
./.
Carmine/NNP
Grigoli/NNP
,/,
chief/JJ
market/NN
strategist/NN
for/IN
First/NNP
Boston/NNP
,/,
who/WP
still/RB
says/VBZ
,/,
``/``
We/PRP
expect/VBP
the/DT
Dow/NNP
average/NN
3000/CD
by/IN
mid-1990/NN
,/,
''/''
nonetheless/RB
foresees/VBZ
a/DT
sluggish/JJ
economy/NN
in/IN
the/DT
meantime/NN
./.
He/PRP
recommends/VBZ
such/JJ
blue-chip/JJ
growth/NN
stalwarts/NNS
as/IN
Philip/NNP
Morris/NNP
,/,
PepsiCo/NNP
,/,
CPC/NNP
International/NNP
,/,
Reebok/NNP
International/NNP
,/,
and/CC
Limited/NNP
Inc/NNP
./.
All/DT
have/VBP
a/DT
fiveyear/JJ
earnings/NNS
growth/NN
rate/NN
of/IN
more/JJR
than/IN
20/CD
%/NN
a/DT
year/NN
./.
Some/DT
money/NN
managers/NNS
are/VBP
pursuing/VBG
growth/NN
stocks/NNS
at/IN
the/DT
expense/NN
of/IN
those/DT
that/WDT
rise/VBP
and/CC
fall/VBP
along/IN
with/IN
the/DT
economic/JJ
cycle/NN
./.
``/``
One/CD
of/IN
the/DT
stories/NNS
of/IN
the/DT
fourth/JJ
quarter/NN
is/VBZ
that/IN
we/PRP
will/MD
get/VB
an/DT
unusual/JJ
number/NN
of/IN
earnings/NNS
disappointments/NNS
from/IN
companies/NNS
sensitive/JJ
to/TO
the/DT
economy/NN
,/,
''/''
says/VBZ
Mr./NNP
Boesel/NNP
of/IN
T./NNP
Rowe/NNP
Price/NNP
./.
James/NNP
Wright/NNP
,/,
chief/JJ
investment/NN
officer/NN
for/IN
Banc/NNP
One/CD
Asset/NNP
Management/NNP
,/,
says/VBZ
,/,
``/``
We/PRP
've/VBP
been/VBN
selling/VBG
a/DT
disproportionate/JJ
share/NN
of/IN
cyclical/JJ
companies/NNS
and/CC
buying/VBG
a/DT
disproportionate/JJ
share/NN
of/IN
high/JJ
earnings/NNS
stocks/NNS
./.
''/''
He/PRP
recently/RB
trimmed/VBD
his/PRP$
portfolio/NN
of/IN
International/NNP
Paper/NNP
,/,
Dow/NNP
Chemical/NNP
,/,
Quantum/NNP
Chemical/NNP
,/,
International/NNP
Business/NNP
Machines/NNPS
and/CC
Digital/NNP
Equipment/NNP
./.
He/PRP
is/VBZ
putting/VBG
money/NN
in/IN
Dress/NNP
Barn/NNP
,/,
Circuit/NNP
City/NNP
Stores/NNPS
,/,
Bruno/NNP
's/POS
,/,
and/CC
Rubbermaid/NNP
./.
Big/JJ
cyclical/JJ
companies/NNS
are/VBP
using/VBG
``/``
all/PDT
the/DT
tricks/NNS
they/PRP
can/MD
to/TO
stabilize/VB
earnings/NNS
,/,
''/''
says/VBZ
Mr./NNP
Sloan/NNP
./.
He/PRP
cites/VBZ
IBM/NNP
,/,
which/WDT
reported/VBD
a/DT
30/CD
%/NN
earnings/NNS
decline/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
and/CC
which/WDT
last/JJ
week/NN
announced/VBD
a/DT
$/$
1/CD
billion/CD
buy-back/NN
of/IN
its/PRP$
shares/NNS
./.
``/``
What/WP
they/PRP
are/VBP
telling/VBG
you/PRP
is/VBZ
that/IN
they/PRP
do/VBP
n't/RB
have/VB
the/DT
ability/NN
to/TO
generate/VB
higher/JJR
returns/NNS
internally/RB
,/,
''/''
says/VBZ
Mr./NNP
Sloan/NNP
./.
``/``
When/WRB
they/PRP
are/VBP
buying/VBG
back/RB
stock/NN
at/IN
10/CD
times/NNS
earnings/NNS
,/,
they/PRP
are/VBP
suggesting/VBG
that/IN
the/DT
rate/NN
of/IN
return/NN
on/IN
competing/VBG
internal/JJ
projects/NNS
is/VBZ
below/IN
''/''
returns/NNS
on/IN
the/DT
stock/NN
./.
IBM/NNP
says/VBZ
it/PRP
considers/VBZ
its/PRP$
shares/NNS
a/DT
good/JJ
investment/NN
./.
But/CC
not/RB
all/DT
strategists/NNS
or/CC
money/NN
managers/NNS
are/VBP
ready/JJ
to/TO
throw/VB
in/IN
the/DT
towel/NN
completely/RB
on/IN
cyclicals/NNS
./.
Growth/NN
stocks/NNS
may/MD
underperform/VB
cyclical/JJ
stocks/NNS
next/IN
year/NN
if/IN
the/DT
Federal/NNP
Reserve/NNP
begins/VBZ
to/TO
let/VB
interest/NN
rates/NNS
drift/VB
sufficiently/RB
lower/RBR
to/TO
boost/VB
the/DT
economy/NN
./.
Goldman/NNP
Sachs/NNP
's/POS
Mr./NNP
Einhorn/NNP
,/,
for/IN
one/CD
,/,
subscribes/VBZ
to/TO
that/DT
scenario/NN
./.
He/PRP
suggests/VBZ
investors/NNS
think/VB
about/IN
buying/VBG
cyclical/JJ
shares/NNS
in/IN
the/DT
weeks/NNS
ahead/RB
,/,
as/RB
well/RB
as/IN
growth/NN
issues/NNS
./.
Friday/NNP
's/POS
Market/NN
Activity/NN
Stock/NN
prices/NNS
finished/VBN
about/IN
unchanged/JJ
Friday/NNP
in/IN
quiet/JJ
expiration/NN
trading/NN
./.
Traders/NNS
anticipated/VBD
a/DT
volatile/JJ
session/NN
due/JJ
to/TO
the/DT
October/NNP
expiration/NN
of/IN
stock-index/NN
futures/NNS
and/CC
options/NNS
,/,
and/CC
options/NNS
on/IN
individual/JJ
stocks/NNS
./.
But/CC
there/EX
were/VBD
fewer/JJR
price/NN
swings/NNS
than/IN
expected/VBN
./.
Buy/JJ
order/NN
imbalances/NNS
on/IN
several/JJ
big/JJ
stocks/NNS
were/VBD
posted/VBN
by/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
But/CC
block/NN
trading/NN
desks/NNS
and/CC
money/NN
managers/NNS
made/VBD
a/DT
concerted/JJ
effort/NN
to/TO
meet/VB
the/DT
imbalances/NNS
with/IN
stock/NN
to/TO
sell/VB
,/,
one/CD
trader/NN
said/VBD
./.
As/IN
a/DT
result/NN
,/,
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
drifted/VBD
in/IN
narrow/JJ
ranges/NNS
in/IN
the/DT
final/JJ
hour/NN
of/IN
trading/NN
,/,
and/CC
closed/VBN
5.94/CD
higher/JJR
to/TO
2689.14/CD
./.
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
volume/NN
was/VBD
164,830,000/CD
./.
Advancers/NNS
on/IN
the/DT
Big/NNP
Board/NNP
lagged/VBD
decliners/NNS
662/CD
to/TO
829/CD
./.
For/IN
the/DT
week/NN
,/,
the/DT
industrial/JJ
average/NN
gained/VBD
119.88/CD
points/NNS
,/,
or/CC
4.7/CD
%/NN
,/,
the/DT
biggest/JJS
weekly/JJ
point/NN
advance/NN
ever/RB
and/CC
a/DT
better/JJR
than/IN
50/CD
%/NN
rebound/NN
from/IN
the/DT
190.58/CD
point/NN
loss/NN
the/DT
industrial/JJ
average/NN
logged/VBD
Oct./NNP
13/CD
./.
Broader/JJR
market/NN
averages/NNS
were/VBD
little/RB
changed/JJ
in/IN
the/DT
latest/JJS
session/NN
./.
Standard/NNP
&/CC
Poor/NNP
's/POS
500-Stock/NNP
Index/NNP
gained/VBD
0.03/CD
to/TO
347.16/CD
,/,
the/DT
Dow/NNP
Jones/NNP
Equity/NNP
Market/NNP
Index/NNP
fell/VBD
0.02/CD
to/TO
325.50/CD
,/,
and/CC
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
Composite/NNP
Index/NNP
fell/VBD
0.05/CD
to/TO
192.12/CD
./.
Most/JJS
of/IN
last/JJ
week/NN
's/POS
surge/NN
in/IN
the/DT
industrial/JJ
average/NN
came/VBD
on/IN
Monday/NNP
,/,
when/WRB
the/DT
average/NN
rose/VBD
88.12/CD
points/NNS
as/IN
market/NN
players/NNS
snapped/VBD
up/RP
blue-chip/JJ
issues/NNS
and/CC
shunned/VBD
the/DT
broad/JJ
market/NN
./.
That/DT
contrast/NN
was/VBD
reflected/VBN
in/IN
the/DT
smaller/JJR
weekly/JJ
percentage/NN
gains/NNS
recorded/VBN
by/IN
the/DT
broader/JJR
averages/NNS
./.
The/DT
S&P/NNP
500/CD
rose/VBD
4/CD
%/NN
,/,
the/DT
Dow/NNP
Jones/NNP
Equity/NNP
Market/NNP
index/NN
gained/VBD
3.7/CD
%/NN
and/CC
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
index/NN
added/VBD
3.5/CD
%/NN
./.
The/DT
Dow/NNP
Jones/NNP
Transportation/NNP
Average/NNP
fell/VBD
32.71/CD
to/TO
1230.80/CD
amid/IN
renewed/VBN
weakness/NN
in/IN
the/DT
airline/NN
sector/NN
./.
UAL/NNP
skidded/VBD
21/CD
5\/8/CD
to/TO
168/CD
1\/2/CD
on/IN
2.2/CD
million/CD
shares/NNS
./.
On/IN
the/DT
week/NN
,/,
UAL/NNP
was/VBD
down/RB
nearly/RB
40/CD
%/NN
./.
The/DT
latest/JJS
drop/NN
followed/VBD
a/DT
decision/NN
by/IN
British/NNP
Airways/NNPS
,/,
which/WDT
had/VBD
supported/VBN
the/DT
$/$
300-a-share/JJ
buy-out/NN
offer/NN
for/IN
UAL/NNP
from/IN
a/DT
labor-management/JJ
group/NN
,/,
not/RB
to/TO
participate/VB
in/IN
any/DT
revised/VBN
bid/NN
./.
British/NNP
Airways/NNPS
fell/VBD
1/CD
to/TO
31/CD
7\/8/CD
./.
While/IN
most/JJS
other/JJ
airline/NN
issues/NNS
took/VBD
their/PRP$
cue/NN
from/IN
UAL/NNP
,/,
USAir/NNP
Group/NNP
rose/VBD
1/CD
3\/4/CD
to/TO
43/CD
1\/4/CD
on/IN
1.5/CD
million/CD
shares/NNS
amid/IN
speculation/NN
about/IN
a/DT
possible/JJ
takeover/NN
proposal/NN
from/IN
investor/NN
Marvin/NNP
Davis/NNP
./.
USA/NNP
Today/NNP
reported/VBD
that/IN
Mr./NNP
Davis/NNP
,/,
who/WP
had/VBD
pursued/VBN
UAL/NNP
before/IN
dropping/VBG
his/PRP$
bid/NN
Wednesday/NNP
,/,
has/VBZ
acquired/VBN
a/DT
stake/NN
of/IN
about/IN
3/CD
%/NN
in/IN
USAir/NNP
./.
Unocal/NNP
fell/VBD
1/CD
1\/2/CD
to/TO
52/CD
1\/4/CD
and/CC
Burlington/NNP
Resources/NNPS
declined/VBD
7\/8/CD
to/TO
45/CD
5\/8/CD
./.
At/IN
a/DT
meeting/NN
with/IN
analysts/NNS
,/,
British/NNP
Petroleum/NNP
officials/NNS
dispelled/VBD
speculation/NN
that/IN
the/DT
company/NN
may/MD
take/VB
over/IN
a/DT
U.S./NNP
oil/NN
company/NN
,/,
according/VBG
to/TO
Dow/NNP
Jones/NNP
Professional/NNP
Investor/NNP
Report/NNP
./.
Both/DT
Unocal/NNP
and/CC
Burlington/NNP
had/VBD
been/VBN
seen/VBN
as/IN
potential/JJ
targets/NNS
for/IN
a/DT
British/NNP
Petroleum/NNP
bid/NN
./.
Paper/NNP
and/CC
forest-products/NNS
stocks/NNS
declined/VBD
after/IN
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
&/CC
Co./NNP
lowered/VBD
investment/NN
ratings/NNS
on/IN
a/DT
number/NN
of/IN
issues/NNS
in/IN
the/DT
two/CD
sectors/NNS
,/,
based/VBN
on/IN
a/DT
forecast/NN
that/IN
pulp/NN
prices/NNS
will/MD
fall/VB
sharply/RB
./.
International/NNP
Paper/NNP
dropped/VBD
5\/8/CD
to/TO
51/CD
,/,
Georgia-Pacific/NNP
fell/VBD
1/CD
3\/4/CD
to/TO
56/CD
1\/4/CD
,/,
Stone/NNP
Container/NNP
tumbled/VBD
1/CD
1\/2/CD
to/TO
26/CD
5\/8/CD
,/,
Great/NNP
Northern/NNP
Nekoosa/NNP
went/VBD
down/RB
5\/8/CD
to/TO
38/CD
3\/8/CD
and/CC
Weyerhaeuser/NNP
lost/VBD
7\/8/CD
to/TO
28/CD
1\/8/CD
./.
Dun/NNP
&/CC
Bradstreet/NNP
dropped/VBD
3\/4/CD
to/TO
51/CD
1\/8/CD
on/IN
1.9/CD
million/CD
shares/NNS
on/IN
uncertainty/NN
about/IN
the/DT
company/NN
's/POS
earnings/NNS
prospects/NNS
./.
Merrill/NNP
Lynch/NNP
cut/VBD
its/PRP$
rating/NN
and/CC
1990/CD
earnings/NNS
estimate/NN
Thursday/NNP
,/,
citing/VBG
weakness/NN
in/IN
its/PRP$
credit-rating/NN
business/NN
./.
Lamson/NNP
&/CC
Sessions/NNP
,/,
which/WDT
posted/VBD
sharply/RB
lower/JJR
third-quarter/NN
earnings/NNS
and/CC
forecast/VBD
that/IN
results/NNS
for/IN
the/DT
fourth/JJ
quarter/NN
might/MD
be/VB
``/``
near/RB
break-even/JJ
,/,
''/''
fell/VBD
1\/2/CD
to/TO
9/CD
1\/4/CD
./.
Winnebago/NNP
Industries/NNPS
slid/VBD
5\/8/CD
to/TO
5/CD
1\/4/CD
./.
The/DT
company/NN
,/,
which/WDT
reported/VBD
that/DT
its/PRP$
loss/NN
for/IN
the/DT
fiscal/JJ
quarter/NN
ended/VBN
Aug./NNP
26/CD
widened/VBN
from/IN
a/DT
year/NN
earlier/RB
,/,
cut/VB
its/PRP$
semiannual/JJ
dividend/NN
in/IN
half/NN
in/IN
response/NN
to/TO
the/DT
earnings/NNS
weakness/NN
./.
MassMutual/NNP
Corporate/NNP
Investors/NNPS
fell/VBD
3/CD
to/TO
29/CD
after/IN
declaring/VBG
a/DT
quarterly/JJ
dividend/NN
of/IN
70/CD
cents/NNS
a/DT
share/NN
,/,
down/RB
from/IN
95/CD
cents/NNS
a/DT
share/NN
./.
Stoneridge/NNP
Resources/NNPS
Inc./NNP
said/VBD
it/PRP
will/MD
begin/VB
an/DT
offering/NN
of/IN
rights/NNS
equivalent/JJ
to/TO
2.6/CD
million/CD
common/JJ
shares/NNS
and/CC
valued/VBN
at/IN
$/$
22,750,000/CD
./.
The/DT
Bloomfield/NNP
Hills/NNPS
,/,
Mich.-based/JJ
real-estate/NN
holding/NN
company/NN
said/VBD
it/PRP
will/MD
offer/VB
the/DT
rights/NNS
at/IN
$/$
8.75/CD
a/DT
share/NN
to/TO
shareholders/NNS
of/IN
record/NN
on/IN
Oct./NNP
26/CD
./.
The/DT
offering/NN
is/VBZ
scheduled/VBN
to/TO
expire/VB
on/IN
Nov./NNP
30/CD
./.
The/DT
company/NN
said/VBD
it/PRP
will/MD
use/VB
the/DT
proceeds/NNS
of/IN
the/DT
offering/NN
for/IN
debt/NN
reduction/NN
and/CC
general/JJ
corporate/JJ
purposes/NNS
,/,
including/VBG
acquisitions/NNS
./.
Stockholders/NNP
may/MD
buy/VB
one/CD
share/NN
at/IN
the/DT
subscription/NN
price/NN
for/IN
every/DT
four/CD
shares/NNS
of/IN
stock/NN
they/PRP
own/VBP
./.
Stockholders/NNP
who/WP
exercise/VBP
all/DT
their/PRP$
rights/NNS
may/MD
buy/VB
additional/JJ
shares/NNS
,/,
the/DT
company/NN
said/VBD
./.
The/DT
company/NN
said/VBD
it/PRP
has/VBZ
an/DT
option/NN
to/TO
increase/VB
the/DT
offering/NN
by/IN
up/IN
to/TO
350,000/CD
shares/NNS
./.
The/DT
following/VBG
U.S./NNP
Treasury/NNP
,/,
corporate/JJ
and/CC
municipal/JJ
offerings/NNS
are/VBP
tentatively/RB
scheduled/VBN
for/IN
sale/NN
this/DT
week/NN
,/,
according/VBG
to/TO
Dow/NNP
Jones/NNP
Capital/NNP
Markets/NNPS
Report/NNP
:/:
$/$
15.6/CD
billion/CD
three-month/JJ
and/CC
six-month/JJ
bills/NNS
./.
$/$
10/CD
billion/CD
of/IN
two-year/JJ
notes/NNS
./.
Resolution/NNP
Funding/NNP
Corp./NNP
to/TO
sell/VB
$/$
4.5/CD
billion/CD
30-year/JJ
bonds/NNS
./.
Aim/NNP
Prime/NNP
Rate/NNP
Plus/NNP
Fund/NNP
Inc./NNP
--/:
10/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
PaineWebber/NNP
Inc/NNP
./.
Allied/NNP
Capital/NNP
Corp./NNP
II/NNP
--/:
6,500,000/CD
common/JJ
shares/NNS
,/,
via/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc/NNP
./.
American/NNP
Cyanamid/NNP
Co./NNP
--/:
1,250,000/CD
common/JJ
shares/NNS
,/,
via/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNPS
./.
Associated/NNP
Natural/NNP
Gas/NNP
Corp./NNP
--/:
1,400,000/CD
common/JJ
shares/NNS
,/,
via/IN
Dillon/NNP
Read/NNP
&/CC
Co/NNP
./.
B/NNP
&/CC
H/NNP
Crude/NNP
Carriers/NNPS
Ltd./NNP
--/:
Four/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
Salomon/NNP
Brothers/NNPS
Inc/NNP
./.
Baldwin/NNP
Technology/NNP
Co./NNP
--/:
2,600,000/CD
Class/NNP
A/NNP
shares/NNS
,/,
via/IN
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
&/CC
Co/NNP
./.
Blockbuster/NNP
Entertainment/NNP
Corp./NNP
--/:
$/$
250/CD
million/CD
face/NN
amount/NN
Liquid/NN
Yield/NN
Option/NN
Notes/NNS
,/,
via/IN
Merrill/NNP
Lynch/NNP
./.
Chemex/NNP
Pharmaceuticals/NNPS
Inc./NNP
--/:
1,200,000/CD
units/NNS
,/,
via/IN
PaineWebber/NNP
./.
Immune/NNP
Response/NNP
Corp./NNP
--/:
Three/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
Merrill/NNP
Lynch/NNP
./.
Marsam/NNP
Pharmaceuticals/NNPS
Inc./NNP
--/:
1,300,000/CD
common/JJ
shares/NNS
,/,
via/IN
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
./.
RMI/NNP
Titanium/NNP
Co./NNP
--/:
15/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
Salomon/NNP
Brothers/NNPS
Inc/NNP
./.
Tidewater/NNP
Inc./NNP
--/:
4,631,400/CD
common/JJ
shares/NNS
,/,
via/IN
Salomon/NNP
Brothers/NNPS
Inc/NNP
./.
Massachusetts/NNP
--/:
Approximately/RB
$/$
230/CD
million/CD
of/IN
general/JJ
bonds/NNS
,/,
consolidated/JJ
loan/NN
of/IN
1989/CD
,/,
Series/NN
D/NNP
,/,
via/IN
competitive/JJ
bid/NN
./.
Montgomery/NNP
County/NNP
,/,
Maryland/NNP
--/:
$/$
75/CD
million/CD
of/IN
general/JJ
consolidated/JJ
public/JJ
improvement/NN
bonds/NNS
of/IN
1989/CD
,/,
Series/NN
B/NNP
,/,
via/IN
competitive/JJ
bid/NN
./.
Trinity/NNP
River/NNP
Authority/NNP
,/,
Texas/NNP
--/:
$/$
134,750,000/CD
of/IN
regional/JJ
wastewater/NN
system/NN
improvement/NN
revenue/NN
bonds/NNS
,/,
Series/NN
1989/CD
,/,
via/IN
competitive/JJ
bid/NN
./.
City/NNP
and/CC
County/NNP
of/IN
Honolulu/NNP
,/,
Hawaii/NNP
--/:
$/$
75/CD
million/CD
of/IN
obligation/NN
bonds/NNS
,/,
1989/CD
Series/NN
B/NNP
,/,
due/RB
1993-2009/CD
,/,
via/IN
competitive/JJ
bid/NN
./.
Beverly/NNP
Hills/NNPS
--/:
$/$
110/CD
million/CD
of/IN
civic/JJ
center/NN
project/NN
certificates/NNS
of/IN
participation/NN
,/,
Series/NN
1989/CD
,/,
via/IN
a/DT
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
group/NN
./.
Broward/NNP
County/NNP
School/NNP
District/NNP
,/,
Florida/NNP
--/:
$/$
185/CD
million/CD
of/IN
school/NN
district/NN
general/JJ
bonds/NNS
,/,
via/IN
a/DT
First/NNP
Boston/NNP
Corp./NNP
group/NN
./.
Connecticut/NNP
Housing/NNP
Finance/NNP
Authority/NNP
--/:
$/$
132,620,000/CD
of/IN
housing/NN
mortgage/NN
revenue/NN
AMT/NNP
and/CC
non-AMT/JJ
bonds/NNS
,/,
via/IN
a/DT
PaineWebber/NNP
group/NN
./.
Maryland/NNP
Stadium/NNP
Authority/NNP
--/:
$/$
137,550,000/CD
of/IN
sports/NNS
facilities/NNS
lease/NN
revenue/NN
Alternative/NNP
Minimum/NNP
Tax/NNP
AMT/NNP
bonds/NNS
,/,
Series/NN
1989/CD
D/NNP
,/,
via/IN
a/DT
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
group/NN
./.
Michigan/NNP
--/:
$/$
80/CD
million/CD
of/IN
Michigan/NNP
First/NNP
general/JJ
bonds/NNS
,/,
including/VBG
$/$
70/CD
million/CD
of/IN
environmental/JJ
protection/NN
project/NN
bonds/NNS
and/CC
$/$
10/CD
million/CD
of/IN
recreation/NN
project/NN
bonds/NNS
,/,
via/IN
a/DT
Shearson/NNP
Lehman/NNP
Hutton/NNP
group/NN
./.
West/NNP
Virginia/NNP
Parkways/NNPS
Economic/NNP
Development/NNP
and/CC
Tourism/NNP
Authority/NNP
--/:
$/$
143/CD
million/CD
of/IN
parkway/NN
revenue/NN
bonds/NNS
,/,
Series/NN
1989/CD
,/,
via/IN
a/DT
PaineWebber/NNP
group/NN
./.
San/NNP
Antonio/NNP
,/,
Texas/NNP
--/:
$/$
640/CD
million/CD
of/IN
gas/NN
and/CC
electric/JJ
revenue/NN
refunding/VBG
bonds/NNS
,/,
via/IN
a/DT
First/NNP
Boston/NNP
group/NN
./.
MCI/NNP
COMMUNICATIONS/NNPS
Corp./NNP
said/VBD
it/PRP
filed/VBD
a/DT
shelf/NN
registration/NN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
for/IN
issuance/NN
of/IN
as/RB
much/JJ
as/IN
$/$
750/CD
million/CD
of/IN
debt/NN
securities/NNS
./.
The/DT
debt/NN
will/MD
include/VB
medium-term/JJ
notes/NNS
sold/VBN
through/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNPS
;/:
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
;/:
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
and/CC
Salomon/NNP
Brothers/NNPS
Inc/NNP
./.
The/DT
funds/NNS
will/MD
be/VB
used/VBN
for/IN
refinancing/VBG
existing/VBG
debt/NN
of/IN
the/DT
Washington/NNP
,/,
D.C./NNP
,/,
concern/NN
at/IN
lower/JJR
interest/NN
rates/NNS
and/CC
for/IN
other/JJ
general/JJ
purposes/NNS
./.
The/DT
effective/JJ
date/NN
of/IN
the/DT
registration/NN
is/VBZ
to/TO
be/VB
determined/VBN
by/IN
the/DT
SEC/NNP
./.
A/DT
group/NN
including/VBG
ESL/NNP
Partners/NNPS
Ltd./NNP
,/,
a/DT
Fort/NNP
Worth/NNP
,/,
Texas/NNP
,/,
investment/NN
partnership/NN
,/,
and/CC
Richard/NNP
E./NNP
Rainwater/NNP
,/,
a/DT
former/JJ
adviser/NN
to/TO
the/DT
Fort/NNP
Worth/NNP
Bass/NNP
family/NN
,/,
said/VBD
it/PRP
reduced/VBD
its/PRP$
stake/NN
in/IN
Anacomp/NNP
Inc./NNP
to/TO
3.6/CD
%/NN
of/IN
the/DT
common/JJ
shares/NNS
outstanding/JJ
./.
In/IN
a/DT
filing/NN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
,/,
the/DT
group/NN
said/VBD
it/PRP
sold/VBD
1,325,900/CD
Anacomp/NNP
common/JJ
shares/NNS
from/IN
Aug./NNP
31/CD
to/TO
last/JJ
Wednesday/NNP
for/IN
$/$
4.48/CD
to/TO
$/$
5.84/CD
a/DT
share/NN
,/,
resulting/VBG
in/IN
a/DT
drop/NN
in/IN
its/PRP$
holdings/NNS
to/TO
1,351,662/CD
shares/NNS
./.
No/DT
reason/NN
was/VBD
given/VBN
in/IN
the/DT
filing/NN
for/IN
the/DT
sales/NNS
./.
An/DT
Anacomp/NNP
official/NN
said/VBD
the/DT
Indianapolis/NNP
computer-services/NNS
concern/NN
had/VBD
no/DT
comment/NN
on/IN
the/DT
group/NN
's/POS
share/NN
sales/NNS
./.
In/IN
March/NNP
,/,
the/DT
group/NN
disclosed/VBD
it/PRP
held/VBD
a/DT
7.2/CD
%/NN
stake/NN
in/IN
Anacomp/NNP
for/IN
investment/NN
purposes/NNS
./.
It/PRP
said/VBD
then/RB
it/PRP
had/VBD
had/VBN
and/CC
would/MD
continue/VB
to/TO
have/VB
discussions/NNS
with/IN
Anacomp/NNP
's/POS
management/NN
concerning/VBG
its/PRP$
investment/NN
./.
Home/NNP
Beneficial/NNP
Corp./NNP
,/,
Richmond/NNP
,/,
Va./NNP
,/,
said/VBD
it/PRP
contracted/VBD
to/TO
sell/VB
its/PRP$
50/CD
%/NN
interest/NN
in/IN
a/DT
Richmond-area/JJ
shopping/NN
mall/NN
to/TO
a/DT
buyer/NN
that/DT
was/VBD
n't/RB
identified/VBN
./.
The/DT
life-insurance/NN
holding/NN
company/NN
said/VBD
the/DT
sale/NN
would/MD
result/VB
in/IN
an/DT
after-tax/JJ
gain/NN
of/IN
about/IN
$/$
32/CD
million/CD
,/,
or/CC
$/$
3.09/CD
a/DT
share/NN
,/,
in/IN
the/DT
first/JJ
quarter/NN
of/IN
The/DT
company/NN
also/RB
said/VBD
it/PRP
will/MD
adopt/VB
new/JJ
accounting/NN
standards/NNS
in/IN
the/DT
first/JJ
quarter/NN
./.
The/DT
change/NN
will/MD
result/VB
in/IN
a/DT
charge/NN
of/IN
about/IN
$/$
8.5/CD
million/CD
,/,
or/CC
82/CD
cents/NNS
a/DT
share/NN
,/,
because/IN
of/IN
an/DT
increase/NN
in/IN
deferred/JJ
income-tax/NN
liability/NN
./.
In/IN
the/DT
first/JJ
quarter/NN
of/IN
1988/CD
,/,
the/DT
company/NN
earned/VBN
$/$
10/CD
million/CD
,/,
or/CC
94/CD
cents/NNS
a/DT
share/NN
./.
Following/VBG
is/VBZ
a/DT
weekly/JJ
listing/NN
of/IN
unadited/JJ
net/JJ
asset/NN
values/NNS
of/IN
publicly/RB
traded/JJ
investment/NN
fund/NN
shares/NNS
,/,
reported/VBN
by/IN
the/DT
companies/NNS
as/IN
of/IN
Friday/NNP
's/POS
close/NN
./.
Also/RB
shown/VBN
is/VBZ
the/DT
closing/NN
listed/JJ
market/NN
price/NN
or/CC
a/DT
dealer-to-dealer/JJ
asked/JJ
price/NN
of/IN
each/DT
fund/NN
's/POS
shares/NNS
,/,
with/IN
the/DT
percentage/NN
of/IN
difference/NN
./.
Closed/NNP
End/NNP
Bond/NNP
Funds/NNPS
Flexible/NNP
Portfolio/NNP
Funds/NNPS
Specialized/NNP
Equity/NNP
and/CC
Convertible/NNP
Funds/NNPS
a/SYM
-/:
Ex-dividend/NN
./.
b/SYM
-/:
As/IN
of/IN
Thursday/NNP
's/POS
close/NN
./.
c/SYM
-/:
Translated/VBN
at/IN
Commercial/NNP
Rand/NNP
exchange/NN
rate/NN
./.
e/SYM
-/:
In/IN

Canadian/JJ
dollars/NNS
./.
f/SYM
-/:
As/IN
of/IN
Wednesday/NNP
's/POS
close/NN
./.
A/DT
shareholder/NN
filed/VBD
suit/NN
,/,
seeking/VBG
to/TO
block/VB
Unitel/NNP
Video/NNP
Inc./NNP
's/POS
proposed/VBN
plan/NN
to/TO
be/VB
acquired/VBN
by/IN
a/DT
new/JJ
affiliate/NN
of/IN
closely/RB
held/JJ
Kenmare/NNP
Capital/NNP
Corp./NNP
for/IN
$/$
15/CD
a/DT
share/NN
,/,
or/CC
$/$
33.6/CD
million/CD
./.
The/DT
suit/NN
,/,
which/WDT
seeks/VBZ
class-action/JJ
status/NN
,/,
was/VBD
filed/VBN
in/IN
Delaware/NNP
Chancery/NNP
Court/NNP
./.
The/DT
complaint/NN
alleges/VBZ
that/IN
the/DT
price/NN
is/VBZ
``/``
unfair/JJ
and/CC
grossly/RB
inadequate/JJ
''/''
and/CC
that/IN
the/DT
defendants/NNS
are/VBP
seeking/VBG
to/TO
ensure/VB
a/DT
``/``
lockup/NN
''/''
of/IN
the/DT
purchase/NN
of/IN
Unitel/NNP
,/,
thereby/RB
discouraging/VBG
other/JJ
bids/NNS
./.
It/PRP
seeks/VBZ
unspecified/JJ
money/NN
damages/NNS
./.
The/DT
New/NNP
York/NNP
company/NN
called/VBD
the/DT
lawsuit/NN
without/IN
merit/NN
./.
Shareholders/NNS
are/VBP
scheduled/VBN
to/TO
vote/VB
on/IN
the/DT
transaction/NN
Nov/NNP
./.
This/DT
Toronto/NNP
closed-end/JJ
fund/NN
cut/VBD
the/DT
annual/JJ
dividend/NN
on/IN
its/PRP$
Class/NN
A/NNP
common/JJ
shares/NNS
to/TO
one/CD
Canadian/JJ
cent/NN
from/IN
10/CD
Canadian/JJ
cents/NNS
./.
The/DT
fund/NN
invests/VBZ
mainly/RB
in/IN
gold/NN
and/CC
silver/NN
bullion/NN
./.
It/PRP
said/VBD
the/DT
reduced/VBN
dividend/NN
reflects/VBZ
the/DT
low/JJ
price/NN
for/IN
precious/JJ
metals/NNS
./.
Greg/NNP
Davies/NNP
,/,
Central/NNP
Fund/NNP
's/POS
vice/NN
president/NN
,/,
finance/NN
,/,
said/VBD
losses/NNS
for/IN
the/DT
fiscal/JJ
year/NN
ending/VBG
Oct./NNP
31/CD
could/MD
be/VB
as/RB
high/JJ
as/IN
one/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
852,000/CD
The/DT
fund/NN
last/RB
had/VBD
a/DT
profit/NN
in/IN
1985/CD
./.
The/DT
new/JJ
dividend/NN
rate/NN
is/VBZ
payable/JJ
Nov./NNP
15/CD
to/TO
holders/NNS
of/IN
record/NN
Oct./NNP
31/CD
./.
In/IN
American/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
Friday/NNP
,/,
Central/NNP
Fund/NNP
was/VBD
unchanged/JJ
at/IN
$/$
4.6875/CD
a/DT
share/NN
./.
Comair/NNP
Holdings/NNPS
Inc./NNP
said/VBD
in/IN
Cincinnati/NNP
that/IN
it/PRP
bought/VBD
Airline/NNP
Aviation/NNP
Academy/NNP
,/,
a/DT
pilot/NN
training/NN
school/NN
based/VBN
at/IN
Sanford/NNP
Regional/NNP
Airport/NNP
near/IN
Orlando/NNP
,/,
Fla/NNP
./.
Comair/NNP
said/VBD
it/PRP
paid/VBD
cash/NN
but/CC
declined/VBD
to/TO
disclose/VB
the/DT
price/NN
./.
Comair/NNP
Holdings/NNPS
is/VBZ
the/DT
parent/NN
of/IN
Comair/NNP
Inc./NNP
,/,
a/DT
regional/JJ
air/NN
carrier/NN
./.
Airline/NNP
Aviation/NNP
,/,
which/WDT
has/VBZ
annual/JJ
revenue/NN
of/IN
$/$
5/CD
million/CD
to/TO
$/$
6/CD
million/CD
,/,
has/VBZ
great/JJ
growth/NN
potential/NN
because/IN
of/IN
the/DT
large/JJ
number/NN
of/IN
U.S./NNP
pilots/NNS
nearing/VBG
retirement/NN
age/NN
,/,
Comair/NNP
said/VBD
./.
The/DT
unit/NN
will/MD
be/VB
renamed/VBN
Comair/NNP
Aviation/NNP
Academy/NNP
and/CC
will/MD
continue/VB
to/TO
be/VB
headed/VBN
by/IN
Scott/NNP
Williams/NNP
,/,
a/DT
son/NN
of/IN
its/PRP$
founder/NN
,/,
Comair/NNP
said/VBD
./.
The/DT
collapse/NN
of/IN
a/DT
$/$
6.79/CD
billion/CD
buy-out/NN
of/IN
United/NNP
Airlines/NNPS
parent/NN
UAL/NNP
Corp./NNP
has/VBZ
handed/VBN
Wall/NNP
Street/NNP
's/POS
takeover/NN
stock/NN
speculators/NNS
their/PRP$
worst/JJS
loss/NN
ever/RB
on/IN
a/DT
single/JJ
deal/NN
./.
Their/PRP$
$/$
700/CD
million-plus/JJ
in/IN
estimated/VBN
paper/NN
losses/NNS
easily/RB
tops/VBZ
the/DT
$/$
400/CD
million/CD
in/IN
paper/NN
losses/NNS
the/DT
takeover/NN
traders/NNS
,/,
known/VBN
as/IN
arbitragers/NNS
,/,
suffered/VBN
in/IN
1982/CD
when/WRB
Gulf/NNP
Oil/NNP
Co./NNP
dropped/VBD
a/DT
$/$
4.8/CD
billion/CD
offer/NN
for/IN
Cities/NNPS
Service/NNP
Co/NNP
./.
In/IN
the/DT
six/CD
trading/NN
days/NNS
since/IN
the/DT
UAL/NNP
labor-management/NN
buy-out/NN
group/NN
failed/VBD
to/TO
get/VB
bank/NN
financing/NN
,/,
culminating/VBG
Friday/NNP
with/IN
the/DT
withdrawal/NN
of/IN
its/PRP$
partner/NN
British/NNP
Airways/NNPS
PLC/NNP
,/,
UAL/NNP
stock/NN
has/VBZ
plummeted/VBN
by/IN
41/CD
%/NN
to/TO
168/CD
1\/2/CD
from/IN
285/CD
1\/4/CD
./.
The/DT
arbs/NNS
may/MD
recoup/VB
some/DT
of/IN
their/PRP$
paper/NN
losses/NNS
if/IN
the/DT
UAL/NNP
deal/NN
gets/VBZ
patched/VBN
up/RB
again/RB
,/,
as/IN
they/PRP
did/VBD
in/IN
1982/CD
when/WRB
Occidental/NNP
Petroleum/NNP
Co./NNP
rescued/VBD
them/PRP
with/IN
a/DT
$/$
4/CD
billion/CD
takeover/NN
of/IN
Cities/NNPS
Service/NNP
./.
In/IN
the/DT
meantime/NN
,/,
the/DT
question/NN
faced/VBN
by/IN
investors/NNS
is/VBZ
:/:
What/WP
is/VBZ
UAL/NNP
stock/NN
worth/NN
?/.
The/DT
short/JJ
answer/NN
,/,
on/IN
a/DT
fundamental/JJ
basis/NN
,/,
is/VBZ
that/IN
airline/NN
analysts/NNS
say/VBP
the/DT
stock/NN
is/VBZ
worth/JJ
somewhere/RB
between/IN
$/$
135/CD
and/CC
$/$
150/CD
a/DT
share/NN
./.
That/DT
's/VBZ
based/VBN
on/IN
a/DT
multiple/NN
of/IN
anywhere/RB
between/IN
8.5/CD
to/TO
10/CD
times/NNS
UAL/NNP
earnings/NNS
,/,
which/WDT
are/VBP
estimated/VBN
to/TO
come/VB
in/IN
somewhere/RB
around/IN
$/$
16/CD
a/DT
share/NN
this/DT
year/NN
./.
Airline/NN
stocks/NNS
typically/RB
sell/VBP
at/IN
a/DT
discount/NN
of/IN
about/IN
one-third/NN
to/TO
the/DT
stock/NN
market/NN
's/POS
price-earnings/NNS
ratio/NN
--/:
which/WDT
is/VBZ
currently/RB
about/IN
13/CD
times/NNS
earnings/NNS
./.
That/DT
's/VBZ
because/IN
airline/NN
earnings/NNS
,/,
like/IN
those/DT
of/IN
auto/NN
makers/NNS
,/,
have/VBP
been/VBN
subject/JJ
to/TO
the/DT
cyclical/JJ
ups-and-downs/NNS
of/IN
the/DT
economy/NN
./.
That/DT
analysis/NN
matches/VBZ
up/RB
with/IN
stock/NN
traders/NNS
'/POS
reports/NNS
that/IN
,/,
despite/IN
the/DT
huge/JJ
drop/NN
in/IN
the/DT
stock/NN
,/,
UAL/NNP
has/VBZ
n't/RB
returned/VBN
to/TO
the/DT
level/NN
at/IN
which/WDT
it/PRP
could/MD
attract/VB
buying/NN
by/IN
institutions/NNS
solely/RB
on/IN
the/DT
basis/NN
of/IN
earnings/NNS
./.
So/CC
anyone/NN
buying/VBG
the/DT
stock/NN
now/RB
is/VBZ
betting/VBG
on/IN
some/DT
special/JJ
transaction/NN
such/JJ
as/IN
a/DT
recapitalization/NN
or/CC
takeover/NN
,/,
and/CC
must/MD
do/VB
so/RB
using/VBG
some/DT
guesswork/NN
about/IN
the/DT
likelihood/NN
of/IN
such/JJ
an/DT
event/NN
./.
One/CD
analyst/NN
,/,
who/WP
asked/VBD
not/RB
to/TO
be/VB
identified/VBN
,/,
said/VBD
he/PRP
believes/VBZ
that/IN
the/DT
UAL/NNP
pilots/NNS
and/CC
management/NN
can/MD
put/VB
together/RB
a/DT
bid/NN
``/``
in/IN
the/DT
$/$
225/CD
area/NN
,/,
''/''
but/CC
that/IN
it/PRP
could/MD
take/VB
three/CD
to/TO
four/CD
months/NNS
to/TO
close/VB
./.
At/IN
that/DT
level/NN
,/,
and/CC
given/VBN
the/DT
uncertainty/NN
,/,
he/PRP
believes/VBZ
UAL/NNP
stock/NN
should/MD
trade/VB
closer/RBR
to/TO
Other/JJ
observers/NNS
note/VBP
that/IN
UAL/NNP
's/POS
board/NN
,/,
having/VBG
accepted/VBN
a/DT
bid/NN
of/IN
$/$
300/CD
a/DT
share/NN
,/,
might/MD
hold/VB
out/RB
for/IN
a/DT
new/JJ
bid/NN
much/RB
closer/JJR
to/TO
the/DT
original/NN
level/NN
--/:
even/RB
if/IN
it/PRP
means/VBZ
that/IN
the/DT
management/NN
goes/VBZ
back/RB
to/TO
running/VBG
the/DT
company/NN
for/IN
a/DT
while/NN
and/CC
lets/VBZ
things/NNS
return/VB
to/TO
normal/JJ
./.
By/IN
that/DT
logic/NN
,/,
the/DT
closing/NN
of/IN
a/DT
deal/NN
could/MD
be/VB
much/RB
further/RB
away/RB
than/IN
three/CD
to/TO
four/CD
months/NNS
,/,
even/RB
though/IN
the/DT
eventual/JJ
price/NN
might/MD
be/VB
higher/JJR
./.
Investment/NN
bankers/NNS
following/VBG
UAL/NNP
agree/VBP
that/IN
the/DT
strongest/JJS
impetus/NN
for/IN
an/DT
eventual/JJ
deal/NN
is/VBZ
that/IN
the/DT
pilots/NNS
have/VBP
been/VBN
attempting/VBG
a/DT
buy-out/NN
for/IN
more/JJR
than/IN
two/CD
years/NNS
,/,
and/CC
are/VBP
n't/RB
likely/JJ
to/TO
stop/VB
,/,
having/VBG
come/VBN
so/RB
close/RB
to/TO
success/NN
./.
The/DT
pilots/NNS
have/VBP
a/DT
strong/JJ
financing/NN
tool/NN
in/IN
their/PRP$
willingness/NN
to/TO
cut/VB
their/PRP$
annual/JJ
compensation/NN
by/IN
$/$
200/CD
million/CD
,/,
and/CC
to/TO
commit/VB
$/$
200/CD
million/CD
from/IN
their/PRP$
retirement/NN
funds/NNS
./.
On/IN
Friday/NNP
,/,
they/PRP
also/RB
persuaded/VBD
the/DT
UAL/NNP
flight/NN
attendants/NNS
to/TO
join/VB
them/PRP
./.
However/RB
,/,
investment/NN
bankers/NNS
say/VBP
that/IN
banks/NNS
are/VBP
n't/RB
likely/JJ
to/TO
lend/VB
the/DT
almost/RB
$/$
5/CD
billion/CD
that/DT
would/MD
be/VB
necessary/JJ
for/IN
a/DT
takeover/NN
even/RB
at/IN
a/DT
lower/JJR
price/NN
without/IN
someone/NN
putting/VBG
up/RB
a/DT
hefty/JJ
wad/NN
of/IN
cash/NN
--/:
probably/RB
even/RB
greater/JJR
than/IN
the/DT
17/CD
%/NN
in/IN
cash/NN
put/VBD
up/RB
by/IN
investors/NNS
in/IN
the/DT
leveraged/JJ
takeover/NN
of/IN
Northwest/NNP
Airlines/NNPS
parent/NN
NWA/NNP
Corp./NNP
in/IN
July/NNP
./.
Banks/NNS
want/VBP
to/TO
see/VB
someone/NN
putting/VBG
up/RP
real/JJ
cash/NN
at/IN
risk/NN
,/,
that/DT
is/VBZ
,/,
subordinate/JJ
to/TO
the/DT
bank/NN
debt/NN
in/IN
any/DT
deal/NN
./.
That/DT
way/NN
,/,
they/PRP
figure/VBP
,/,
someone/NN
else/RB
has/VBZ
an/DT
even/RB
stronger/JJR
motivation/NN
to/TO
make/VB
sure/JJ
the/DT
deal/NN
is/VBZ
going/VBG
to/TO
work/VB
,/,
because/IN
they/PRP
would/MD
be/VB
losing/VBG
their/PRP$
money/NN
before/IN
the/DT
banks/NNS
lost/VBD
theirs/PRP
./.
Banks/NNS
also/RB
want/VBP
to/TO
be/VB
able/JJ
to/TO
call/VB
someone/NN
on/IN
the/DT
telephone/NN
to/TO
fix/VB
a/DT
problem/NN
with/IN
a/DT
deal/NN
that/WDT
goes/VBZ
bad/JJ
--/:
preferably/RB
someone/NN
other/JJ
than/IN
a/DT
union/NN
leader/NN
./.
That/DT
leaves/VBZ
the/DT
pilots/NNS
still/RB
in/IN
need/NN
of/IN
cash/NN
totaling/VBG
around/IN
$/$
1/CD
billion/CD
--/:
far/RB
more/JJR
than/IN
either/DT
they/PRP
or/CC
the/DT
flight/NN
attendants/NNS
can/MD
lay/VB
their/PRP$
hands/NNS
on/IN
from/IN
retirement/NN
funds/NNS
alone/RB
./.
One/CD
obstacle/NN
to/TO
the/DT
pilots/NNS
'/POS
finding/VBG
such/JJ
a/DT
huge/JJ
amount/NN
of/IN
cash/NN
is/VBZ
their/PRP$
insistence/NN
on/IN
majority/NN
ownership/NN
./.
Investors/NNS
such/JJ
as/IN
Marvin/NNP
Davis/NNP
of/IN
Los/NNP
Angeles/NNP
who/WP
have/VBP
sought/VBN
airline/NN
ownership/NN
this/DT
year/NN
have/VBP
insisted/VBN
they/PRP
,/,
not/RB
the/DT
pilots/NNS
,/,
must/MD
have/VB
control/NN
./.
One/CD
way/NN
out/IN
of/IN
that/DT
dilemma/NN
could/MD
be/VB
a/DT
partial/JJ
recapitalization/NN
in/IN
which/WDT
the/DT
pilots/NNS
would/MD
wind/VB
up/RB
sharing/VBG
the/DT
value/NN
of/IN
their/PRP$
concessions/NNS
with/IN
public/JJ
shareholders/NNS
./.
The/DT
pilots/NNS
could/MD
borrow/VB
against/IN
the/DT
value/NN
of/IN
their/PRP$
concessions/NNS
,/,
using/VBG
the/DT
proceeds/NNS
to/TO
buy/VB
back/RB
stock/NN
from/IN
the/DT
public/NN
and/CC
give/VB
themselves/PRP
the/DT
majority/NN
control/NN
they/PRP
have/VBP
been/VBN
seeking/VBG
./.
But/CC
it/PRP
is/VBZ
n't/RB
clear/JJ
that/IN
banks/NNS
would/MD
lend/VB
sufficient/JJ
money/NN
to/TO
deliver/VB
a/DT
big/JJ
enough/JJ
price/NN
to/TO
shareholders/NNS
./.
The/DT
lack/NN
of/IN
any/DT
new/JJ
cash/NN
probably/RB
would/MD
still/RB
leave/VB
the/DT
banks/NNS
dissatisfied/JJ
./.
In/IN
advising/VBG
the/DT
UAL/NNP
board/NN
on/IN
the/DT
various/JJ
bids/NNS
for/IN
the/DT
airline/NN
,/,
starting/VBG
with/IN
one/CD
for/IN
$/$
240/CD
a/DT
share/NN
from/IN
Mr./NNP
Davis/NNP
,/,
the/DT
investment/NN
bank/NN
of/IN
First/NNP
Boston/NNP
came/VBD
up/RB
with/IN
a/DT
wide/JJ
range/NN
of/IN
potential/JJ
values/NNS
for/IN
the/DT
company/NN
,/,
depending/VBG
on/IN
appraisal/NN
methods/NNS
and/CC
assumptions/NNS
./.
Using/VBG
the/DT
the/DT
NWA/NNP
takeover/NN
as/IN
a/DT
benchmark/NN
,/,
First/NNP
Boston/NNP
on/IN
Sept./NNP
14/CD
estimated/VBD
that/IN
UAL/NNP
was/VBD
worth/JJ
$/$
250/CD
to/TO
$/$
344/CD
a/DT
share/NN
based/VBN
on/IN
UAL/NNP
's/POS
results/NNS
for/IN
the/DT
12/CD
months/NNS
ending/VBG
last/JJ
June/NNP
30/CD
,/,
but/CC
only/RB
$/$
235/CD
to/TO
$/$
266/CD
based/VBN
on/IN
a/DT
management/NN
estimate/NN
of/IN
results/NNS
for/IN
1989/CD
./.
First/RB
Boston/NNP
's/POS
estimates/NNS
had/VBD
been/VBN
higher/JJR
before/IN
management/NN
supplied/VBD
a/DT
1989/CD
projection/NN
./.
Using/VBG
estimates/NNS
of/IN
the/DT
company/NN
's/POS
future/JJ
earnings/NNS
under/IN
a/DT
variety/NN
of/IN
scenarios/NNS
,/,
First/RB
Boston/NNP
estimated/VBD
UAL/NNP
's/POS
value/NN
at/IN
$/$
248/CD
to/TO
$/$
287/CD
a/DT
share/NN
if/IN
its/PRP$
future/JJ
labor/NN
costs/NNS
conform/VBP
to/TO
Wall/NNP
Street/NNP
projections/NNS
;/:
$/$
237/CD
to/TO
$/$
275/CD
if/IN
the/DT
company/NN
reaches/VBZ
a/DT
settlement/NN
with/IN
pilots/NNS
similar/JJ
to/TO
one/CD
at/IN
NWA/NNP
;/:
$/$
98/CD
to/TO
$/$
121/CD
under/IN
an/DT
adverse/JJ
labor/NN
settlement/NN
,/,
and/CC
$/$
229/CD
to/TO
$/$
270/CD
under/IN
a/DT
pilot/NN
contract/NN
imposed/VBN
by/IN
the/DT
company/NN
following/VBG
a/DT
strike/NN
./.
And/CC
using/VBG
liquidation/NN
value/NN
assuming/VBG
the/DT
sale/NN
of/IN
all/DT
UAL/NNP
assets/NNS
,/,
First/NNP
Boston/NNP
estimated/VBD
the/DT
airline/NN
is/VBZ
worth/JJ
$/$
253/CD
to/TO
$/$
303/CD
a/DT
share/NN
./.
Unfortunately/RB
,/,
all/PDT
those/DT
estimates/NNS
came/VBD
before/IN
airline/NN
industry/NN
fundamentals/NNS
deteriorated/VBN
during/IN
the/DT
past/JJ
month/NN
./.
American/NNP
Airlines/NNPS
parent/NN
AMR/NNP
and/CC
USAir/NNP
Group/NNP
,/,
both/DT
subject/JJ
to/TO
takeover/NN
efforts/NNS
themselves/PRP
,/,
have/VBP
each/DT
warned/VBN
of/IN
declining/VBG
results/NNS
./.
Some/DT
analysts/NNS
do/VBP
n't/RB
expect/VB
a/DT
quick/JJ
revival/NN
of/IN
any/DT
takeover/NN
by/IN
the/DT
pilots/NNS
./.
The/DT
deal/NN
has/VBZ
,/,
as/IN
one/CD
takeover/NN
expert/NN
puts/VBZ
it/PRP
,/,
``/``
so/RB
many/JJ
moving/VBG
parts/NNS
./.
I/PRP
do/VBP
n't/RB
see/VB
anybody/NN
who/WP
's/VBZ
sophisticated/JJ
getting/VBG
his/PRP$
name/NN
associated/VBN
with/IN
this/DT
mess/NN
until/IN
the/DT
moving/VBG
parts/NNS
stop/VBP
moving/VBG
./.
''/''
In/IN
addition/NN
to/TO
the/DT
need/NN
for/IN
another/DT
cash/NN
equity/NN
investor/NN
,/,
the/DT
other/JJ
moving/VBG
parts/NNS
include/VBP
:/:
the/DT
pilots/NNS
themselves/PRP
,/,
who/WP
can/MD
scuttle/VB
rival/JJ
deals/NNS
by/IN
threatening/VBG
to/TO
strike/VB
;/:
the/DT
machinists/NNS
union/NN
,/,
the/DT
pilots/NNS
'/POS
longtime/JJ
rivals/NNS
who/WP
helped/VBD
scuttle/VB
the/DT
pilots/NNS
'/POS
deal/NN
;/:
and/CC
regulators/NNS
in/IN
Washington/NNP
,/,
whose/WP$
opposition/NN
to/TO
foreign/JJ
airline/NN
investment/NN
helped/VBD
throw/VB
the/DT
deal/NN
into/IN
doubt/NN
./.
In/IN
the/DT
meantime/NN
,/,
the/DT
arbs/NNS
are/VBP
bleeding/VBG
./.
Wall/NNP
Street/NNP
traders/NNS
and/CC
analysts/NNS
estimate/VBP
that/IN
takeover/NN
stock/NN
traders/NNS
own/VBP
UAL/NNP
stock/NN
and/CC
options/NNS
equal/JJ
to/TO
as/RB
many/JJ
as/IN
6.5/CD
million/CD
shares/NNS
,/,
or/CC
about/IN
30/CD
%/NN
of/IN
the/DT
total/NN
outstanding/JJ
./.
Frank/NNP
Gallagher/NNP
,/,
an/DT
analyst/NN
with/IN
Phoenix/NNP
Capital/NNP
Corp./NNP
in/IN
New/NNP
York/NNP
,/,
estimates/VBZ
that/IN
the/DT
arbs/NNS
paid/VBD
an/DT
average/NN
of/IN
about/IN
$/$
280/CD
a/DT
share/NN
for/IN
their/PRP$
UAL/NNP
positions/NNS
./.
That/DT
would/MD
indicate/VB
that/IN
the/DT
arbs/NNS
have/VBP
paper/NN
losses/NNS
on/IN
UAL/NNP
alone/JJ
totalling/VBG
$/$
725/CD
million/CD
./.
UAL/NNP
Corp/NNP
./.
NYSE/NNP
;/:
Symbol/NN
:/:
UAL/NNP
Business/NN
:/:
Airline/NN
Year/NN
ended/VBN
Dec./NNP
31/CD
,/,
1988/CD
:/:
Sales/NNS
:/:
$/$
8.98/CD
billion/CD
Net/JJ
income/NN
\*/SYM
:/:
$/$
599.9/CD
million/CD
;/:
or/CC
$/$
20.20/CD
a/DT
share/NN
Second/JJ
quarter/NN
,/,
June/NNP
30/CD
,/,
1989/CD
:/:
Per-share/JJ
earnings/NNS
:/:
$/$
6.52/CD
vs./FW
$/$
5.77/CD
Average/JJ
daily/JJ
trading/NN
volume/NN
:/:
881,969/CD
shares/NNS
Common/JJ
shares/NNS
outstanding/JJ
:/:
21.6/CD
million/CD
\*/SYM
Continuing/VBG
operations/NNS
Eastern/NNP
Enterprises/NNPS
,/,
bolstered/VBN
by/IN
improved/JJ
tonnages/NNS
in/IN
its/PRP$
marine-shipping/JJ
unit/NN
,/,
had/VBD
a/DT
narrower/JJR
third-quarter/JJ
net/NN
loss/NN
of/IN
$/$
1.1/CD
million/CD
,/,
or/CC
five/CD
cents/NNS
a/DT
share/NN
./.
Last/JJ
year/NN
,/,
Eastern/NNP
had/VBD
a/DT
quarter/NN
loss/NN
of/IN
$/$
1.7/CD
million/CD
,/,
or/CC
eight/CD
cents/NNS
a/DT
share/NN
./.
Quarter/NN
revenue/NN
rose/VBD
44/CD
%/NN
to/TO
$/$
160.1/CD
million/CD
from/IN
$/$
111.2/CD
million/CD
a/DT
year/NN
ago/RB
./.
The/DT
Weston/NNP
,/,
Mass./NNP
,/,
utilities/NNS
and/CC
marine-transport/NN
concern/NN
said/VBD
results/NNS
for/IN
the/DT
third/JJ
quarter/NN
,/,
usually/RB
a/DT
money-losing/JJ
one/NN
because/RB
of/IN
the/DT
seasonality/NN
of/IN
the/DT
gas/NN
business/NN
,/,
were/VBD
also/RB
aided/VBN
by/IN
higher/JJR
gas/NN
sales/NNS
and/CC
the/DT
May/MD
1989/CD
acquisition/NN
of/IN
Water/NNP
Products/NNPS
Company/NNP
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Eastern/NNP
had/VBD
net/JJ
income/NN
of/IN
$/$
41.8/CD
million/CD
,/,
or/CC
$/$
1.80/CD
a/DT
share/NN
,/,
up/RB
23/CD
%/NN
from/IN
$/$
33.9/CD
million/CD
or/CC
$/$
1.46/CD
a/DT
share/NN
a/DT
year/NN
ago/RB
./.
Revenue/NN
grew/VBD
24/CD
%/NN
to/TO
$/$
614.5/CD
million/CD
from/IN
$/$
497.1/CD
million/CD
./.
Convex/NNP
Computer/NNP
Corp./NNP
,/,
continuing/VBG
its/PRP$
rapid/JJ
growth/NN
while/IN
other/JJ
computer/NN
companies/NNS
falter/VBP
,/,
reported/VBD
an/DT
87/CD
%/NN
increase/NN
in/IN
third-quarter/JJ
net/JJ
income/NN
from/IN
a/DT
year/NN
earlier/RB
and/CC
a/DT
50/CD
%/NN
increase/NN
in/IN
revenue/NN
./.
Net/NN
was/VBD
$/$
3.1/CD
million/CD
,/,
or/CC
16/CD
cents/NNS
a/DT
share/NN
,/,
up/RB
from/IN
$/$
1.6/CD
million/CD
,/,
or/CC
nine/CD
cents/NNS
a/DT
share/NN
./.
Revenue/NN
was/VBD
$/$
41.2/CD
million/CD
,/,
up/RB
from/IN
$/$
27.5/CD
million/CD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
net/NN
was/VBD
$/$
7.7/CD
million/CD
,/,
or/CC
41/CD
cents/NNS
a/DT
share/NN
,/,
up/RB
97/CD
%/NN
from/IN
$/$
3.9/CD
million/CD
,/,
or/CC
22/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
./.
Revenue/NN
was/VBD
$/$
111.9/CD
million/CD
,/,
up/RB
50/CD
%/NN
from/IN
$/$
74.8/CD
million/CD
./.
Convex/NNP
makes/VBZ
supercomputers/NNS
that/WDT
sell/VBP
for/IN
up/IN
to/TO
$/$
2/CD
million/CD
and/CC
has/VBZ
an/DT
installed/JJ
base/NN
of/IN
more/JJR
than/IN
550/CD
systems/NNS
and/CC
340/CD
customers/NNS
world-wide/JJ
./.
During/IN
the/DT
third/JJ
quarter/NN
,/,
it/PRP
said/VBD
,/,
it/PRP
won/VBD
several/JJ
significant/JJ
contracts/NNS
,/,
including/VBG
a/DT
five-year/JJ
contract/NN
with/IN
the/DT
National/NNP
Institutes/NNP
of/IN
Health/NNP
valued/VBN
at/IN
an/DT
estimated/VBN
$/$
8/CD
million/CD
./.
Earlier/RB
this/DT
month/NN
,/,
Convex/NNP
made/VBD
a/DT
bid/NN
to/TO
outflank/VB
other/JJ
supercomputer/NN
competitors/NNS
like/IN
Digital/NNP
Equipment/NNP
Corp./NNP
and/CC
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
by/IN
adopting/VBG
an/DT
open/JJ
set/NN
of/IN
standards/NNS
and/CC
introducing/VBG
new/JJ
hardware/NN
and/CC
software/NN
to/TO
link/VB
different/JJ
systems/NNS
./.
The/DT
new/JJ
products/NNS
allow/VBP
customers/NNS
to/TO
add/VB
Convex/NNP
machines/NNS
to/TO
established/JJ
systems/NNS
made/VBN
by/IN
other/JJ
manufacturers/NNS
,/,
which/WDT
``/``
opens/VBZ
up/RP
a/DT
phenomenal/JJ
market/NN
for/IN
us/PRP
,/,
''/''
said/VBD
Robert/NNP
J./NNP
Paluck/NNP
,/,
Convex/NNP
's/POS
chairman/NN
,/,
president/NN
and/CC
chief/JJ
executive/NN
./.
Convex/NNP
also/RB
recently/RB
agreed/VBD
to/TO
use/VB
Posix/NNP
,/,
a/DT
standard/NN
for/IN
the/DT
computer/NN
language/NN
called/VBN
UNIX/NNP
./.
Posix/NNP
is/VBZ
one/CD
of/IN
three/CD
or/CC
four/CD
versions/NNS
of/IN
UNIX/NNP
,/,
but/CC
it/PRP
is/VBZ
increasingly/RB
required/VBN
by/IN
the/DT
federal/JJ
government/NN
as/IN
it/PRP
tries/VBZ
to/TO
standardize/VB
its/PRP$
computer/NN
systems/NNS
./.
Most/RBS
other/JJ
supercomputer/NN
manufacturers/NNS
have/VBP
yet/RB
to/TO
adopt/VB
the/DT
Posix/NNP
standard/NN
,/,
Mr./NNP
Paluck/NNP
said/VBD
,/,
adding/VBG
that/IN
they/PRP
prefer/VBP
to/TO
maintain/VB
proprietary/JJ
systems/NNS
that/WDT
lock/VBP
in/RP
customers/NNS
./.
``/``
They/PRP
want/VBP
a/DT
lobster/NN
trap/NN
--/:
once/IN
you/PRP
get/VB
in/RB
,/,
you/PRP
ca/MD
n't/RB
get/VB
out/RB
,/,
''/''
he/PRP
said/VBD
./.
``/``
But/CC
the/DT
customer/NN
does/VBZ
n't/RB
want/VB
that/DT
./.
''/''
Convex/NNP
closed/VBD
in/IN
over-the-counter/JJ
trading/NN
on/IN
Friday/NNP
at/IN
$/$
15.375/CD
a/DT
share/NN
,/,
down/RB
12.5/CD
cents/NNS
./.
Troubled/JJ
Saatchi/NNP
&/CC
Saatchi/NNP
Co./NNP
has/VBZ
attracted/VBN
offers/NNS
for/IN
some/DT
of/IN
its/PRP$
advertising/NN
units/NNS
,/,
with/IN
potential/JJ
suitors/NNS
including/VBG
Interpublic/NNP
Group/NNP
,/,
but/CC
has/VBZ
rejected/VBN
them/PRP
,/,
people/NNS
familiar/JJ
with/IN
the/DT
company/NN
said/VBD
./.
Industry/NN
executives/NNS
said/VBD
Interpublic/NNP
approached/VBD
Saatchi/NNP
in/IN
August/NNP
about/IN
buying/VBG
its/PRP$
Campbell-Mithun-Esty/NNP
unit/NN
,/,
but/CC
was/VBD
turned/VBN
down/RB
by/IN
Chairman/NNP
Maurice/NNP
Saatchi/NNP
./.
More/RBR
recently/RB
,/,
Interpublic/NNP
inquired/VBD
about/IN
one/CD
of/IN
Saatchi/NNP
's/POS
smaller/JJR
communications/NNS
companies/NNS
--/:
identified/VBN
as/IN
the/DT
Rowland/NNP
public/JJ
relations/NNS
firm/NN
by/IN
several/JJ
industry/NN
executives/NNS
--/:
but/CC
again/RB
was/VBD
rebuffed/VBN
,/,
they/PRP
said/VBD
./.
Interpublic/NNP
's/POS
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
,/,
Philip/NNP
Geier/NNP
Jr./NNP
,/,
made/VBD
the/DT
pitches/NNS
in/IN
visits/NNS
to/TO
Mr./NNP
Saatchi/NNP
in/IN
London/NNP
,/,
the/DT
executives/NNS
said/VBD
./.
A/DT
Saatchi/NNP
spokesman/NN
declined/VBD
to/TO
comment/VB
about/IN
Interpublic/NNP
./.
But/CC
the/DT
spokesman/NN
confirmed/VBD
that/IN
Saatchi/NNP
has/VBZ
received/VBN
several/JJ
inquiries/NNS
from/IN
companies/NNS
interested/VBN
in/IN
acquiring/VBG
its/PRP$
Campbell-Mithun/NNP
and/CC
Rowland/NNP
units/NNS
./.
He/PRP
added/VBD
,/,
``/``
We/PRP
have/VBP
no/DT
intention/NN
of/IN
selling/VBG
either/CC
business/NN
./.
''/''
Interpublic/NNP
declined/VBD
comment/NN
./.
The/DT
offers/NNS
come/VBP
as/IN
Saatchi/NNP
is/VBZ
struggling/VBG
through/IN
the/DT
most/RBS
troubled/JJ
period/NN
in/IN
its/PRP$
19-year/JJ
history/NN
./.
Takeover/NN
speculation/NN
has/VBZ
been/VBN
rife/JJ
,/,
its/PRP$
consulting/NN
business/NN
is/VBZ
on/IN
the/DT
block/NN
,/,
and/CC
its/PRP$
largest/JJS
shareholder/NN
,/,
Southeastern/NNP
Asset/NNP
Management/NNP
,/,
has/VBZ
said/VBD
it/PRP
's/VBZ
been/VBN
approached/VBN
by/IN
third/JJ
parties/NNS
regarding/VBG
a/DT
possible/JJ
restructuring/NN
./.
Analysts/NNS
have/VBP
continually/RB
lowered/VBN
their/PRP$
earnings/NNS
estimates/NNS
for/IN
the/DT
company/NN
,/,
and/CC
their/PRP$
outlook/NN
,/,
at/IN
least/JJS
for/IN
the/DT
short/JJ
term/NN
,/,
is/VBZ
bleak/JJ
./.
In/IN
the/DT
midst/NN
of/IN
the/DT
current/JJ
turmoil/NN
,/,
Saatchi/NNP
is/VBZ
attempting/VBG
to/TO
shore/VB
up/RP
its/PRP$
ad/NN
businesses/NNS
./.
It/PRP
named/VBD
a/DT
new/JJ
chief/JJ
executive/NN
officer/NN
,/,
former/JJ
IMS/NNP
International/NNP
head/NN
Robert/NNP
Louis-Dreyfus/NNP
./.
It/PRP
rebuffed/VBD
an/DT
offer/NN
by/IN
Carl/NNP
Spielvogel/NNP
,/,
head/NN
of/IN
Saatchi/NNP
's/POS
Backer/NNP
Spielvogel/NNP
Bates/NNP
unit/NN
,/,
to/TO
lead/VB
a/DT
management/NN
buy-out/NN
of/IN
all/DT
or/CC
part/NN
of/IN
Saatchi/NNP
./.
And/CC
last/JJ
week/NN
,/,
people/NNS
close/JJ
to/TO
Saatchi/NNP
said/VBD
Maurice/NNP
Saatchi/NNP
and/CC
his/PRP$
brother/NN
,/,
Charles/NNP
,/,
would/MD
lead/VB
a/DT
buy-out/NN
if/IN
a/DT
hostile/JJ
bid/NN
emerged/VBD
./.
But/CC
Saatchi/NNP
's/POS
troubles/NNS
have/VBP
only/RB
whipped/VBN
up/RP
interest/NN
among/IN
outsiders/NNS
interested/VBN
in/IN
picking/VBG
off/RP
pieces/NNS
of/IN
its/PRP$
ad/NN
businesses/NNS
./.
While/IN
Saatchi/NNP
's/POS
major/JJ
agency/NN
networks/NNS
--/:
Backer/NNP
Spielvogel/NNP
and/CC
Saatchi/NNP
&/CC
Saatchi/NNP
Advertising/NNP
--/:
would/MD
be/VB
difficult/JJ
for/IN
any/DT
ad/NN
firm/NN
to/TO
buy/VB
because/RB
of/IN
potential/JJ
client/NN
conflicts/NNS
,/,
its/PRP$
smaller/JJR
businesses/NNS
are/VBP
quite/RB
attractive/JJ
./.
Campbell-Mithun-Esty/NNP
,/,
for/IN
example/NN
,/,
has/VBZ
had/VBD
big/JJ
problems/NNS
at/IN
its/PRP$
New/NNP
York/NNP
office/NN
,/,
but/CC
offers/VBZ
strong/JJ
offices/NNS
in/IN
other/JJ
areas/NNS
of/IN
the/DT
country/NN
,/,
including/VBG
Minneapolis/NNP
and/CC
Chicago/NNP
./.
That/DT
would/MD
would/MD
make/VB
it/PRP
appealing/JJ
to/TO
a/DT
network/NN
such/JJ
as/RB
Interpublic/NNP
that/IN
already/RB
has/VBZ
a/DT
healthy/JJ
New/NNP
York/NNP
presence/NN
./.
there/EX
would/MD
be/VB
some/DT
client/NN
conflicts/NNS
,/,
they/PRP
would/MD
n't/RB
be/VB
nearly/RB
as/RB
onerous/JJ
as/IN
with/IN
Saatchi/NNP
's/POS
other/JJ
agencies/NNS
./.
Campbell-Mithun/NNP
also/RB
would/MD
be/VB
a/DT
sizable/JJ
addition/NN
to/TO
an/DT
agency/NN
network/NN
:/:
It/PRP
has/VBZ
billings/NNS
of/IN
about/IN
$/$
850/CD
million/CD
and/CC
blue-chip/JJ
clients/NNS
including/VBG
General/NNP
Mills/NNPS
,/,
Jeep\/Eagle/NNP
and/CC
Dow/NNP
Brands/NNPS
./.
Rowland/NNP
,/,
meanwhile/RB
,/,
has/VBZ
expanded/VBN
aggressively/RB
,/,
and/CC
now/RB
ranks/VBZ
as/IN
the/DT
fifth-largest/JJ
U.S./NNP
public/JJ
relations/NNS
firm/NN
,/,
according/VBG
to/TO
O'Dwyer's/NNP
Directory/NNP
of/IN
Public/NNP
Relations/NNPS
Firms/NNPS
./.
It/PRP
would/MD
be/VB
attractive/JJ
to/TO
an/DT
agency/NN
such/JJ
as/IN
Interpublic/NNP
,/,
one/CD
of/IN
the/DT
few/JJ
big/JJ
agency/NN
groups/NNS
without/IN
an/DT
affiliated/JJ
public/NN
relations/NNS
firm/NN
of/IN
its/PRP$
own/JJ
./.
Other/JJ
Saatchi/NNP
units/NNS
include/VBP
ad/NN
agency/NN
McCaffrey/NNP
&/CC
McCall/NNP
,/,
which/WDT
has/VBZ
the/DT
Mercedes/NNP
account/NN
and/CC
which/WDT
has/VBZ
been/VBN
attempting/VBG
to/TO
buy/VB
itself/PRP
back/RB
;/:
and/CC
Howard/NNP
Marlboro/NNP
,/,
a/DT
sports/NNS
and/CC
event/NN
marketing/NN
firm/NN
./.
Despite/IN
Saatchi/NNP
's/POS
firm/JJ
stand/NN
against/IN
selling/VBG
its/PRP$
ad/NN
units/NNS
,/,
U.S./NNP
analysts/NNS
believe/VBP
the/DT
company/NN
may/MD
ultimately/RB
sell/VB
some/DT
of/IN
the/DT
smaller/JJR
units/NNS
./.
Mr./NNP
Louis-Dreyfus/NNP
,/,
in/IN
a/DT
recent/JJ
interview/NN
,/,
said/VBD
he/PRP
might/MD
sell/VB
``/``
a/DT
marginal/JJ
agency/NN
or/CC
office/NN
./.
''/''
Analysts/NNS
believe/VBP
he/PRP
may/MD
ultimately/RB
dispose/VB
of/IN
some/DT
of/IN
the/DT
non-advertising/JJ
businesses/NNS
./.
Prudential/NNP
's/POS
Final/JJ
Four/CD
Prudential/NNP
Insurance/NNP
Co./NNP
of/IN
America/NNP
said/VBD
it/PRP
selected/VBD
four/CD
agencies/NNS
to/TO
pitch/VB
its/PRP$
$/$
60/CD
million/CD
to/TO
$/$
70/CD
million/CD
account/NN
./.
In/IN
addition/NN
to/TO
Backer/NNP
Spielvogel/NNP
Bates/NNP
,/,
a/DT
Saatchi/NNP
unit/NN
that/WDT
has/VBZ
handled/VBN
the/DT
account/NN
since/IN
1970/CD
,/,
the/DT
other/JJ
agencies/NNS
include/VBP
Lowe/NNP
Marschalk/NNP
,/,
a/DT
unit/NN
of/IN
the/DT
Lowe/NNP
Group/NNP
;/:
Grey/NNP
Advertising/NNP
;/:
and/CC
WPP/NNP
Group/NNP
's/POS
Scali/NNP
,/,
McCabe/NNP
,/,
Sloves/NNP
agency/NN
./.
All/DT
agencies/NNS
are/VBP
New/NNP
York-based/JJ
./.
A/DT
spokesman/NN
for/IN
the/DT
insurance/NN
and/CC
financial/JJ
services/NNS
firm/NN
,/,
based/VBN
in/IN
Newark/NNP
,/,
N.J./NNP
,/,
said/VBD
it/PRP
hopes/VBZ
to/TO
make/VB
a/DT
decision/NN
within/IN
three/CD
to/TO
four/CD
months/NNS
./.
Jamaica/NNP
Fires/VBZ
Back/RB
The/DT
Jamaica/NNP
Tourist/NNP
Board/NNP
,/,
in/IN
the/DT
wake/NN
of/IN
Young/NNP
&/CC
Rubicam/NNP
's/POS
indictment/NN
on/IN
charges/NNS
that/IN
it/PRP
bribed/VBD
Jamaican/JJ
officials/NNS
to/TO
win/VB
the/DT
account/NN
in/IN
1981/CD
,/,
released/VBD
a/DT
scathing/JJ
memo/NN
blaming/VBG
the/DT
agency/NN
for/IN
the/DT
embarrassing/JJ
incident/NN
./.
The/DT
memo/NN
attempts/VBZ
to/TO
remove/VB
the/DT
tourist/NN
board/NN
as/RB
far/RB
as/IN
possible/RB
from/IN
the/DT
agency/NN
,/,
which/WDT
pleaded/VBD
innocent/JJ
to/TO
the/DT
charges/NNS
./.
Among/IN
other/JJ
things/NNS
,/,
the/DT
memo/NN
contends/VBZ
that/IN
Young/NNP
&/CC
Rubicam/NNP
gave/VBD
false/JJ
assurances/NNS
that/IN
the/DT
investigation/NN
would/MD
n't/RB
uncover/VB
any/DT
information/NN
that/WDT
would/MD
``/``
embarrass/VB
the/DT
government/NN
of/IN
Jamaica/NNP
or/CC
the/DT
Jamaica/NNP
Tourist/NNP
Board/NNP
./.
''/''
It/PRP
also/RB
contends/VBZ
that/IN
Young/NNP
&/CC
Rubicam/NNP
never/RB
told/VBD
the/DT
tourist/NN
board/NN
about/IN
its/PRP$
relationship/NN
with/IN
Ad/NNP
Ventures/NNPS
,/,
a/DT
Jamaican/JJ
firm/NN
hired/VBN
by/IN
the/DT
agency/NN
./.
The/DT
U.S./NNP
indictment/NN
charges/VBZ
Ad/NNP
Ventures/NNPS
was/VBD
a/DT
front/NN
used/VBN
to/TO
funnel/VB
kickbacks/NNS
to/TO
the/DT
then-minister/NN
of/IN
tourism/NN
./.
The/DT
memo/NN
also/RB
chastises/VBZ
the/DT
agency/NN
for/IN
the/DT
timing/NN
of/IN
its/PRP$
announcement/NN
Thursday/NNP
that/IN
it/PRP
would/MD
no/RB
longer/RB
handle/VB
the/DT
$/$
5/CD
million/CD
to/TO
$/$
6/CD
million/CD
account/NN
./.
The/DT
agency/NN
declined/VBD
comment/NN
,/,
but/CC
said/VBD
it/PRP
will/MD
continue/VB
work/NN
until/IN
a/DT
new/JJ
agency/NN
is/VBZ
chosen/VBN
./.
Ad/NN
Notes/NNS
.../:
./.
NEW/JJ
ACCOUNT/NN
:/:
American/NNP
Suzuki/NNP
Motor/NNP
Corp./NNP
,/,
Brea/NNP
,/,
Calif./NNP
,/,
awarded/VBD
its/PRP$
estimated/VBN
$/$
10/CD
million/CD
to/TO
$/$
30/CD
million/CD
account/NN
to/TO
Asher\/Gould/NNP
,/,
Los/NNP
Angeles/NNP
./.
Also/RB
participating/VBG
in/IN
the/DT
finals/NNS
was/VBD
Los/NNP
Angeles/NNP
agency/NN
Hakuhodo/NNP
Advertising/NNP
America/NNP
./.
American/NNP
Suzuki/NNP
's/POS
previous/JJ
agency/NN
,/,
Keye\/Donna\/Pearlstein/NN
,/,
did/VBD
n't/RB
participate/VB
./.
AYER/NNP
TALKS/VBZ
:/:
N/NNP
W/NNP
Ayer/NNP
's/POS
president/NN
and/CC
chief/JJ
executive/NN
officer/NN
,/,
Jerry/NNP
J./NNP
Siano/NNP
,/,
said/VBD
the/DT
agency/NN
is/VBZ
holding/VBG
``/``
conversations/NNS
''/''
about/IN
acquiring/VBG
Zwiren/NNP
Collins/NNP
Karo/NNP
&/CC
Trusk/NNP
,/,
a/DT
midsized/JJ
Chicago/NNP
agency/NN
,/,
but/CC
a/DT
deal/NN
is/VBZ
n't/RB
yet/RB
close/JJ
to/TO
being/VBG
completed/VBN
./.
WHO/WP
'S/VBZ
NEWS/NN
:/:
John/NNP
Wells/NNP
,/,
47/CD
,/,
former/JJ
president/NN
and/CC
chief/JJ
executive/NN
of/IN
N/NNP
W/NNP
Ayer/NNP
's/POS
Chicago/NNP
office/NN
,/,
was/VBD
named/VBN
management/NN
director/NN
and/CC
director/NN
of/IN
account/NN
services/NNS
at/IN
WPP/NNP
Group/NNP
's/POS
J./NNP
Walter/NNP
Thompson/NNP
agency/NN
in/IN
Chicago/NNP
.../:
./.
Shelly/NNP
Lazarus/NNP
,/,
42/CD
,/,
was/VBD
named/VBN
president/NN
and/CC
chief/JJ
operating/VBG
officer/NN
of/IN
Ogilvy/NNP
&/CC
Mather/NNP
Direct/NNP
,/,
the/DT
direct/JJ
mail/NN
division/NN
of/IN
WPP/NNP
Group/NNP
's/POS
Ogilvy/NNP
&/CC
Mather/NNP
agency/NN
./.
Grand/NNP
Metropolitan/NNP
PLC/NNP
,/,
the/DT
United/NNP
Kingdom/NNP
food/NN
and/CC
beverage/NN
group/NN
that/WDT
owns/VBZ
Pillsbury/NNP
Inc./NNP
of/IN
the/DT
U.S./NNP
,/,
announced/VBD
a/DT
reshuffling/NN
of/IN
board-level/JJ
executive/NN
duties/NNS
intended/VBN
to/TO
fit/VB
the/DT
company/NN
's/POS
recent/JJ
expansion/NN
./.
David/NNP
Nash/NNP
,/,
formerly/RB
group/NN
finance/NN
director/NN
at/IN
Cadbury/NNP
Schweppes/NNP
PLC/NNP
,/,
will/MD
become/VB
Grand/NNP
Met/NNP
's/POS
first/JJ
group/NN
finance/NN
director/NN
in/IN
January/NNP
./.
In/IN
a/DT
statement/NN
,/,
Grand/NNP
Met/NNP
said/VBD
its/PRP$
recent/JJ
``/``
growth/NN
and/CC
wider/JJR
geographic/JJ
spread/NN
''/''
made/VBD
it/PRP
necessary/JJ
to/TO
create/VB
the/DT
new/JJ
position/NN
./.
The/DT
company/NN
also/RB
reassigned/VBD
several/JJ
executive/NN
responsibilities/NNS
./.
David/NNP
Tagg/NNP
,/,
formerly/RB
in/IN
charge/NN
of/IN
gambling/NN
operations/NNS
,/,
was/VBD
appointed/VBN
chief/JJ
executive/NN
for/IN
retailing/NN
and/CC
property/NN
./.
Peter/NNP
Cawdron/NNP
,/,
group/NN
strategy/NN
development/NN
director/NN
,/,
and/CC
Bill/NNP
Shardlow/NNP
,/,
group/NN
personnel/NNS
director/NN
,/,
will/MD
become/VB
part/NN
of/IN
the/DT
board/NN
's/POS
management/NN
committee/NN
./.
David/NNP
Baltimore/NNP
,/,
who/WP
has/VBZ
just/RB
been/VBN
named/VBN
president/NN
of/IN
Rockefeller/NNP
University/NNP
,/,
already/RB
knows/VBZ
what/WP
it/PRP
's/VBZ
like/JJ
to/TO
go/VB
through/IN
life/NN
with/IN
``/``
Nobel/NNP
laureate/NN
''/''
appended/VBN
to/TO
one/PRP
's/POS
name/NN
./.
He/PRP
is/VBZ
currently/RB
experiencing/VBG
what/WP
it/PRP
's/VBZ
like/JJ
to/TO
have/VB
the/DT
phrase/NN
,/,
``/``
under/IN
investigation/NN
for/IN
scientific/JJ
fraud/NN
,/,
''/''
also/RB
attached/VBN
to/TO
his/PRP$
name/NN
./.
The/DT
Nobel/NNP
committee/NN
made/VBD
the/DT
first/JJ
addition/NN
;/:
John/NNP
Dingell/NNP
's/POS
congressional/JJ
committee/NN
created/VBD
the/DT
second/NN
./.
Both/DT
of/IN
Dr./NNP
Baltimore/NNP
's/POS
public/JJ
faces/NNS
have/VBP
been/VBN
on/IN
view/NN
the/DT
past/JJ
few/JJ
weeks/NNS
while/IN
he/PRP
was/VBD
under/IN
consideration/NN
to/TO
succeed/VB
Joshua/NNP
Lederberg/NNP
as/IN
head/NN
of/IN
the/DT
prestigious/JJ
Rockefeller/NNP
research/NN
institution/NN
./.
It/PRP
came/VBD
to/TO
light/VB
that/IN
a/DT
substantial/JJ
number/NN
of/IN
Rockefeller/NNP
's/POS
faculty/NN
were/VBD
upset/JJ
over/IN
or/CC
even/RB
opposed/VBN
to/TO
Dr./NNP
Baltimore/NNP
's/POS
impending/VBG
appointment/NN
./.
They/PRP
were/VBD
disturbed/VBN
at/IN
what/WP
they/PRP
regarded/VBD
as/IN
Dr./NNP
Baltimore/NNP
's/POS
confrontational/JJ
attitude/NN
toward/IN
the/DT
Dingell/NNP
committee/NN
,/,
which/WDT
held/VBD
hearings/NNS
on/IN
a/DT
dispute/NN
over/IN
the/DT
lab/NN
notebooks/NNS
of/IN
a/DT
researcher/NN
who/WP
had/VBD
co-authored/VBN
a/DT
scientific/JJ
paper/NN
with/IN
Dr./NNP
Baltimore/NNP
./.
Readers/NNS
of/IN
these/DT
columns/NNS
``/``
The/NNP
Science/NN
Police/NNS
,/,
''/''
May/MD
15/CD
Dr./NNP
Baltimore/NNP
was/VBD
merely/RB
the/DT
most/RBS
well-known/JJ
part/NN
of/IN
the/DT
Dingell/NNP
committee/NN
's/POS
larger/JJR
investigation/NN
,/,
which/WDT
touched/VBD
MIT/NNP
,/,
Tufts/NNP
,/,
Duke/NNP
,/,
the/DT
National/NNP
Institutes/NNPS
of/IN
Health/NNP
and/CC
elsewhere/RB
./.
Rep./NNP
Dingell/NNP
even/RB
managed/VBD
to/TO
enlist/VB
the/DT
services/NNS
of/IN
the/DT
Secret/NNP
Service/NNP
in/IN
his/PRP$
investigation/NN
of/IN
the/DT
Baltimore/NNP
paper/NN
./.
Insofar/RB
as/IN
Mr./NNP
Dingell/NNP
has/VBZ
a/DT
special/JJ
interest/NN
in/IN
NIH/NNP
and/CC
the/DT
institutions/NNS
that/WDT
receive/VBP
its/PRP$
funding/NN
,/,
the/DT
Rockefeller/NNP
scientists/NNS
were/VBD
no/DT
doubt/RB
discomfited/JJ
by/IN
Dr./NNP
Baltimore/NNP
's/POS
unflattering/JJ
public/JJ
opinion/NN
of/IN
this/DT
congressional/JJ
patron/NN
,/,
whose/WP$
behavior/NN
reminded/VBD
Dr./NNP
Baltimore/NNP
of/IN
the/DT
McCarthy/NNP
era/NN
./.
This/DT
well/RB
may/MD
be/VB
the/DT
first/JJ
time/NN
that/IN
the/DT
venerable/JJ
Rockefeller/NNP
University/NNP
has/VBZ
brushed/VBN
up/RB
publicly/RB
against/IN
the/DT
intimidations/NNS
now/RB
common/JJ
in/IN
American/JJ
science/NN
./.
John/NNP
Dingell/NNP
demagogues/NNS
a/DT
David/NNP
Baltimore/NNP
,/,
animal-rights/NN
activists/NNS
do/VBP
$/$
3.5/CD
million/CD
of/IN
damage/NN
to/TO
labs/NNS
at/IN
the/DT
U.Cal-Davis/NNP
,/,
Meryl/NNP
Streep/NNP
decries/VBZ
the/DT
horrors/NNS
of/IN
chemistry/NN
on/IN
talk/NN
shows/NNS
,/,
Jeremy/NNP
Rifkin/NNP
files/VBZ
lawsuits/NNS
in/IN
federal/JJ
court/NN
to/TO
thwart/VB
biotech/JJ
experiments/NNS
,/,
and/CC
Dutch-elm-disease/NN
researcher/NN
Gary/NNP
Strobel/NNP
's/POS
own/JJ
colleagues/NNS
at/IN
Montana/NNP
State/NNP
denounce/VBP
him/PRP
for/IN
``/``
violating/VBG
''/''
EPA/NNP
rules/NNS
./.
Scientists/NNS
are/VBP
mistaken/VBN
who/WP
still/RB
think/VBP
that/IN
the/DT
anti-science/JJ
movement/NN
in/IN
this/DT
country/NN
is/VBZ
n't/RB
their/PRP$
concern/NN
or/CC
that/IN
a/DT
David/NNP
Baltimore/NNP
could/MD
have/VB
somehow/RB
placated/VBN
a/DT
John/NNP
Dingell/NNP
./.
Mr./NNP
Dingell/NNP
,/,
by/IN
the/DT
way/NN
,/,
has/VBZ
decreed/VBN
another/DT
NIH/NNP
investigation/NN
of/IN
the/DT
Baltimore/NNP
paper/NN
,/,
adding/VBG
to/TO
several/JJ
previous/JJ
investigations/NNS
./.
Something/NN
other/JJ
than/IN
what/WP
most/JJS
scientists/NNS
would/MD
recognize/VB
as/IN
the/DT
truth/NN
is/VBZ
being/VBG
sought/VBN
here/RB
./.
Fortunately/RB
,/,
there/EX
are/VBP
signs/NNS
that/IN
increasing/VBG
numbers/NNS
of/IN
scientists/NNS
understand/VBP
the/DT
necessity/NN
of/IN
speaking/VBG
out/RB
./.
David/NNP
Hubel/NNP
,/,
a/DT
Nobel/NNP
laureate/NN
at/IN
Harvard/NNP
,/,
has/VBZ
taken/VBN
the/DT
lead/NN
in/IN
defending/VBG
research/NN
with/IN
animals/NNS
,/,
as/RB
has/VBZ
Dr./NNP
Michael/NNP
DeBakey/NNP
./.
NASA/NNP
defended/VBD
itself/PRP
vigorously/RB
and/CC
successfully/RB
against/IN
a/DT
Rifkin/NNP
suit/NN
to/TO
block/VB
the/DT
Galileo/NNP
launch/NN
./.
Scientists/NNS
need/VBP
to/TO
understand/VB
that/IN
while/IN
they/PRP
tend/VBP
to/TO
believe/VB
their/PRP$
work/NN
is/VBZ
primarly/RB
about/IN
establishing/VBG
new/JJ
knowledge/NN
or/CC
doing/VBG
good/JJ
,/,
today/NN
it/PRP
is/VBZ
also/RB
about/IN
power/NN
./.
In/IN
a/DT
media-linked/JJ
world/NN
,/,
scientists/NNS
may/MD
earn/VB
wide/JJ
praise/NN
and/CC
even/RB
Nobels/NNPS
for/IN
their/PRP$
work/NN
,/,
but/CC
they/PRP
also/RB
attract/VBP
the/DT
attention/NN
of/IN
people/NNS
who/WP
wish/VBP
to/TO
gain/VB
control/NN
over/IN
the/DT
content/NN
,/,
funding/NN
and/CC
goals/NNS
of/IN
that/DT
work/NN
./.
When/WRB
a/DT
David/NNP
Baltimore/NNP
--/:
or/CC
the/DT
next/JJ
target/NN
--/:
decides/VBZ
it/PRP
is/VBZ
better/JJR
to/TO
stand/VB
up/RB
to/TO
these/DT
forces/NNS
,/,
his/PRP$
fellow/JJ
scientists/NNS
would/MD
do/VB
well/RB
to/TO
recognize/VB
what/WP
is/VBZ
fundamentally/RB
at/IN
stake/NN
,/,
and/CC
offer/VB
their/PRP$
public/JJ
support/NN
./.
Wisconsin/NNP
Toy/NNP
Co./NNP
said/VBD
it/PRP
definitively/RB
agreed/VBD
to/TO
acquire/VB
closely/RB
held/JJ
Everything/NNP
's/VBZ
a/DT
Dollar/NNP
Inc./NNP
of/IN
Virginia/NNP
Beach/NNP
,/,
Va./NNP
,/,
for/IN
stock/NN
currently/RB
valued/VBN
at/IN
about/IN
$/$
4.7/CD
million/CD
./.
The/DT
Milwaukee/NNP
toy/NN
retailer/NN
said/VBD
the/DT
agreement/NN
calls/VBZ
for/IN
Everything/NNP
's/VBZ
a/DT
Dollar/NNP
holders/NNS
to/TO
receive/VB
for/IN
their/PRP$
holdings/NNS
a/DT
total/NN
of/IN
354,600/CD
newly/RB
issued/VBN
Wisconsin/NNP
Toy/NNP
shares/NNS
./.
Wisconsin/NNP
Toy/NNP
currently/RB
has/VBZ
about/IN
4.7/CD
million/CD
shares/NNS
outstanding/JJ
./.
A/DT
company/NN
official/NN
said/VBD
Arthur/NNP
Borie/NNP
,/,
until/IN
January/NNP
chief/JJ
operating/VBG
officer/NN
of/IN
Pic/NNP
'N/CC
Save/NNP
Inc./NNP
,/,
will/MD
buy/VB
a/DT
20/CD
%/NN
stake/NN
in/IN
the/DT
new/JJ
Wisconsin/NNP
Toy/NNP
subsidiary/NN
,/,
and/CC
will/MD
act/VB
as/IN
head/NN
of/IN
Everything/NNP
's/VBZ
a/DT
Dollar/NNP
./.
Wisconsin/NNP
Toy/NNP
has/VBZ
71/CD
retail/JJ
stores/NNS
,/,
primarily/RB
in/IN
discount/NN
settings/NNS
./.
Everything/NNP
's/VBZ
a/DT
Dollar/NNP
operates/VBZ
60/CD
specialty-retail/JJ
stores/NNS
./.
While/IN
welcoming/VBG
Nicholas/NNP
McInnes/NNP
's/POS
Sept./NNP
18/CD
letter/NN
offering/VBG
corrections/NNS
to/TO
your/PRP$
``/``
World-Wide/JJ
Tax/NN
Revolution/NN
''/''
table/NN
editorial/NN
page/NN
,/,
Aug./NNP
29/CD
I/PRP
am/VBP
surprised/VBN
that/IN
he/PRP
neglected/VBD
other/JJ
errors/NNS
that/WDT
,/,
for/IN
some/DT
of/IN
us/PRP
,/,
strike/VBP
close/RB
to/TO
home/NN
./.
As/IN
a/DT
Channel/NNP
Islander/NNP
,/,
I/PRP
was/VBD
amazed/VBN
to/TO
see/VB
my/PRP$
birthplace/NN
listed/VBN
as/IN
one/CD
of/IN
``/``
86/CD
countries/NNS
with/IN
an/DT
income/NN
tax/NN
./.
''/''
Despite/IN
a/DT
history/NN
of/IN
heated/JJ
local/JJ
debate/NN
on/IN
the/DT
topic/NN
,/,
my/PRP$
passport/NN
clearly/RB
reads/VBZ
``/``
British/JJ
citizen/NN
./.
''/''
Whether/NNP
Mr./NNP
McInnes/NNP
's/POS
oversight/NN
is/VBZ
merely/RB
a/DT
sign/NN
of/IN
a/DT
mainlander/NN
's/POS
benign/JJ
neglect/NN
is/VBZ
a/DT
question/NN
my/PRP$
fellow/JJ
Channel/NNP
Islanders/NNPS
friends/NNS
on/IN
the/DT
Isle/NNP
of/IN
Man/NNP
Patrick/NNP
Basham/NNP
Houston/NNP
Roland/NNP
J./NNP
Hawkins/NNP
,/,
chairman/NN
of/IN
Jet/NNP
Vacations/NNPS
Inc./NNP
,/,
was/VBD
elected/VBN
to/TO
the/DT
board/NN
of/IN
this/DT
cruise/NN
line/NN
./.
The/DT
board/NN
expands/VBZ
to/TO
seven/CD
members/NNS
./.
Ducks/NNS
./.
If/IN
the/DT
White/NNP
House/NNP
spots/VBZ
one/CD
,/,
it/PRP
intends/VBZ
to/TO
fire/VB
a/DT
veto/NN
at/IN
it/PRP
./.
Ducks/NNS
are/VBP
this/DT
season/NN
's/POS
word/NN
for/IN
new/JJ
taxes/NNS
,/,
under/IN
OMB/NNP
Director/NNP
Richard/NNP
Darman/NNP
's/POS
formulation/NN
that/IN
``/``
if/IN
it/PRP
looks/VBZ
like/IN
a/DT
duck/NN
,/,
walks/VBZ
like/IN
a/DT
duck/NN
and/CC
quacks/NNS
like/IN
a/DT
duck/NN
,/,
it/PRP
's/VBZ
a/DT
duck/NN
./.
''/''
George/NNP
Bush/NNP
is/VBZ
quite/RB
clear/JJ
:/:
No/DT
new/JJ
ducks/NNS
./.
But/CC
what/WP
about/IN
all/PDT
those/DT
non-duck/JJ
ducks/NNS
flapping/VBG
over/IN
Washington/NNP
?/.
We/PRP
see/VBP
a/DT
whole/JJ
flock/NN
of/IN
programs/NNS
that/WDT
will/MD
impose/VB
significant/JJ
costs/NNS
on/IN
the/DT
American/JJ
economy/NN
in/IN
the/DT
form/NN
of/IN
burdensome/JJ
regulation/NN
and/CC
higher/JJR
liabilities/NNS
./.
Federal/JJ
child/NN
care/NN
quack/UH
The/DT
Clean/JJ
Air/NN
bill/NN
quack/UH
The/DT
disabled-workers/NNS
bill/NN
quack/UH
,/,
quack/UH
The/DT
Bush/NNP
White/NNP
House/NNP
is/VBZ
breeding/VBG
non-duck/JJ
ducks/NNS
the/DT
same/JJ
way/NN
the/DT
Nixon/NNP
White/NNP
House/NNP
did/VBD
:/:
It/PRP
hops/VBZ
on/IN
an/DT
issue/NN
that/WDT
is/VBZ
unopposable/JJ
--/:
cleaner/JJR
air/NN
,/,
better/JJR
treatment/NN
of/IN
the/DT
disabled/JJ
,/,
better/JJR
child/NN
care/NN
./.
It/PRP
comes/VBZ
up/RB
with/IN
a/DT
toned-down/JJ
version/NN
of/IN
a/DT
Democratic/JJ
proposal/NN
./.
The/DT
bill/NN
gets/VBZ
signed/VBN
into/IN
law/NN
and/CC
then/RB
the/DT
administration/NN
watches/VBZ
helplessly/RB
,/,
wondering/VBG
where/WRB
all/PDT
the/DT
``/``
unexpected/JJ
''/''
costs/NNS
came/VBD
from/IN
./.
Consider/VB
,/,
for/IN
instance/NN
,/,
the/DT
very/RB
fat/JJ
fowl/NN
known/VBN
as/IN
federalized/JJ
child/NN
care/NN
./.
The/DT
President/NNP
came/VBD
up/RB
with/IN
a/DT
good/JJ
bill/NN
,/,
but/CC
now/RB
may/MD
end/VB
up/IN
signing/VBG
the/DT
awful/JJ
bureaucratic/JJ
creature/NN
hatched/VBN
on/IN
Capitol/NNP
Hill/NNP
./.
It/PRP
would/MD
create/VB
38,000/CD
local/JJ
day-care/NN
commissions/NNS
,/,
answerable/JJ
to/TO
the/DT
Department/NNP
of/IN
Health/NNP
and/CC
Human/NNP
Services/NNPS
./.
They/PRP
'd/MD
determine/VB
where/WRB
parents/NNS
could/MD
store/VB
their/PRP$
kids/NNS
during/IN
the/DT
day/NN
,/,
and/CC
they/PRP
'd/MD
regulate/VB
the/DT
storage/NN
facilities/NNS
./.
The/DT
initial/JJ
costs/NNS
are/VBP
said/VBN
to/TO
be/VB
in/IN
the/DT
$/$
2/CD
billion/CD
a/DT
year/NN
range/NN
,/,
but/CC
that/DT
's/VBZ
only/RB
the/DT
beginning/NN
./.
New/JJ
entitlements/NNS
tend/VBP
to/TO
grow/VB
,/,
creating/VBG
a/DT
rationale/NN
for/IN
new/JJ
taxes/NNS
./.
Quack/UH
./.
The/DT
administration/NN
claims/VBZ
that/IN
its/PRP$
Clean/JJ
Air/NN
bill/NN
will/MD
cost/VB
businesses/NNS
between/IN
$/$
14/CD
billion/CD
and/CC
$/$
19/CD
billion/CD
annually/RB
,/,
but/CC
economist/NN
Michael/NNP
Evans/NNP
estimates/VBZ
that/IN
the/DT
costs/NNS
for/IN
firms/NNS
will/MD
actually/RB
be/VB
in/IN
the/DT
$/$
60/CD
billion/CD
a/DT
year/NN
range/NN
./.
The/DT
House/NNP
bill/NN
also/RB
distorts/VBZ
economic/JJ
efficiency/NN
in/IN
all/DT
sorts/NNS
of/IN
perverse/JJ
ways/NNS
./.
For/IN
example/NN
,/,
the/DT
administration/NN
proposal/NN
imposes/VBZ
extremely/RB
tough/JJ
emissions/NNS
standards/NNS
on/IN
new/JJ
power/NN
plants/NNS
./.
So/CC
instead/RB
of/IN
building/VBG
more/RBR
efficient/JJ
modern/JJ
plants/NNS
,/,
utilities/NNS
stick/VBP
scrubbers/NNS
on/IN
the/DT
old/JJ
plants/NNS
./.
The/DT
money/NN
spent/VBN
on/IN
scrubbers/NNS
is/VBZ
diverted/VBN
from/IN
planned/JJ
research/NN
on/IN
new/JJ
,/,
cleaner/JJR
technology/NN
./.
The/DT
bill/NN
also/RB
imposes/VBZ
the/DT
California/NNP
auto-emissions/NNS
standards/NNS
on/IN
all/DT
cars/NNS
nationwide/RB
,/,
as/IN
if/IN
a/DT
car/NN
registered/VBN
in/IN
Big/NNP
Sky/NNP
,/,
Montana/NNP
,/,
needed/VBN
to/TO
be/VB
as/RB
clean/JJ
as/IN
one/CD
driven/VBN
in/IN
Los/NNP
Angeles/NNP
./.
Proponents/NNS
of/IN
the/DT
nationwide/JJ
standards/NNS
say/VBP
the/DT
cost/NN
for/IN
car/NN
buyers/NNS
would/MD
be/VB
about/IN
$/$
500/CD
per/IN
car/NN
./.
Other/JJ
analysts/NNS
say/VBP
that/DT
estimate/NN
is/VBZ
low/JJ
./.
Quack/NN
./.
Nobody/NN
knows/VBZ
how/WRB
many/JJ
billions/NNS
of/IN
dollars/NNS
the/DT
Americans/NNPS
With/IN
Disabilities/NNPS
Act/NNP
will/MD
cost/VB
,/,
because/IN
nobody/NN
knows/VBZ
what/WP
the/DT
bill/NN
entails/VBZ
./.
It/PRP
is/VBZ
an/DT
intentionally/RB
vague/JJ
document/NN
that/WDT
will/MD
create/VB
a/DT
wave/NN
of/IN
litigation/NN
./.
Judges/NNS
will/MD
write/VB
the/DT
real/JJ
bill/NN
as/IN
suits/NNS
roll/VBP
through/IN
the/DT
courts/NNS
./.
Lawyers/NNS
will/MD
benefit/VB
./.
Private/JJ
companies/NNS
,/,
and/CC
ultimately/RB
their/PRP$
customers/NNS
,/,
will/MD
end/VB
up/RB
footing/VBG
the/DT
huge/JJ
bill/NN
./.
The/DT
effect/NN
of/IN
Nixon/NNP
era/NN
non-duck/JJ
ducks/NNS
was/VBD
an/DT
economy/NN
clogged/VBN
up/RB
with/IN
regulations/NNS
and/CC
distortions/NNS
./.
All/PDT
this/DT
was/VBD
recognized/VBN
and/CC
documented/VBN
in/IN
the/DT
succeeding/VBG
years/NNS
by/IN
economists/NNS
,/,
some/DT
of/IN
whom/WP
worked/VBD
in/IN
the/DT
Reagan/NNP
administration/NN
to/TO
lift/VB
this/DT
burden/NN
from/IN
the/DT
American/JJ
people/NNS
,/,
states/NNS
and/CC
local/JJ
governments/NNS
./.
Running/VBG
for/IN
President/NNP
in/IN
1980/CD
and/CC
1988/CD
,/,
George/NNP
Bush/NNP
also/RB
persuasively/RB
diagnosed/VBD
the/DT
economic/JJ
stagnation/NN
of/IN
the/DT
1970s/NNS
./.
In/IN
fact/NN
,/,
during/IN
last/JJ
year/NN
's/POS
campaign/NN
,/,
the/DT
entire/JJ
nation/NN
constantly/RB
heard/VBD
Mr./NNP
Bush/NNP
tout/VB
his/PRP$
accomplishments/NNS
as/IN
head/NN
of/IN
the/DT
Task/NNP
Force/NNP
on/IN
Regulatory/NNP
Relief/NNP
./.
``/``
Government/NN
continues/VBZ
to/TO
inhibit/VB
the/DT
productivity/NN
of/IN
our/PRP$
citizenry/NN
and/CC
the/DT
international/JJ
competitiveness/NN
of/IN
American/JJ
business/NN
,/,
''/''
the/DT
vice/NN
president/NN
declared/VBD
when/WRB
he/PRP
was/VBD
head/NN
of/IN
the/DT
task/NN
force/NN
./.
But/CC
with/IN
the/DT
impending/JJ
passage/NN
of/IN
these/DT
new/JJ
programs/NNS
,/,
Mr./NNP
Bush/NNP
will/MD
surely/RB
be/VB
sending/VBG
many/JJ
people/NNS
hurtling/VBG
back/RB
into/IN
the/DT
regulatory/JJ
thicket/NN
that/IN
he/PRP
had/VBD
helped/VBN
cut/VB
back/RB
./.
By/IN
1986/CD
,/,
the/DT
number/NN
of/IN
federal/JJ
regulators/NNS
was/VBD
down/RB
to/TO
about/IN
103,000/CD
./.
Then/RB
it/PRP
turned/VBD
up/RB
,/,
and/CC
by/IN
one/CD
estimate/NN
the/DT
number/NN
will/MD
be/VB
up/RB
to/TO
about/IN
109,000/CD
regulators/NNS
by/IN
next/JJ
year/NN
./.
Holding/VBG
the/DT
dam/NN
on/IN
taxes/NNS
is/VBZ
the/DT
most/RBS
important/JJ
task/NN
of/IN
the/DT
Bush/NNP
presidency/NN
./.
We/PRP
would/MD
have/VB
thought/VBD
by/IN
now/RB
,/,
though/IN
,/,
that/IN
there/EX
was/VBD
a/DT
significant/JJ
core/NN
of/IN
people/NNS
involved/VBN
in/IN
government/NN
life/NN
who/WP
understood/VBD
that/DT
direct/JJ
taxation/NN
is/VBZ
n't/RB
the/DT
only/JJ
way/NN
to/TO
slow/VB
down/RB
an/DT
economy/NN
./.
It/PRP
is/VBZ
merely/RB
the/DT
most/RBS
obvious/JJ
./.
What/WP
is/VBZ
even/RB
more/RBR
ironic/JJ
is/VBZ
that/IN
all/DT
over/IN
the/DT
world/NN
nations/NNS
are/VBP
learning/VBG
that/IN
well-intentioned/JJ
public/JJ
programs/NNS
often/RB
backfire/VBP
./.
But/CC
while/IN
they/PRP
are/VBP
unloading/VBG
these/DT
burdens/NNS
,/,
the/DT
United/NNP
States/NNPS
is/VBZ
close/JJ
to/TO
creating/VBG
three/CD
more/JJR
big/JJ
ones/NNS
./.
The/DT
Bush/NNP
administration/NN
ought/MD
to/TO
be/VB
setting/VBG
aside/RB
some/DT
of/IN
its/PRP$
buckshot/NN
for/IN
the/DT
non-duck/JJ
ducks/NNS
./.
Confidence/NN
in/IN
the/DT
pound/NN
is/VBZ
widely/RB
expected/VBN
to/TO
take/VB
another/DT
sharp/JJ
dive/NN
if/IN
trade/NN
figures/NNS
for/IN
September/NNP
,/,
due/JJ
for/IN
release/NN
tomorrow/NN
,/,
fail/VBP
to/TO
show/VB
a/DT
substantial/JJ
improvement/NN
from/IN
July/NNP
and/CC
August/NNP
's/POS
near-record/JJ
deficits/NNS
./.
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
Nigel/NNP
Lawson/NNP
's/POS
restated/VBN
commitment/NN
to/TO
a/DT
firm/JJ
monetary/JJ
policy/NN
has/VBZ
helped/VBN
to/TO
prevent/VB
a/DT
freefall/NN
in/IN
sterling/NN
over/IN
the/DT
past/JJ
week/NN
./.
But/CC
analysts/NNS
reckon/VBP
underlying/JJ
support/NN
for/IN
sterling/NN
has/VBZ
been/VBN
eroded/VBN
by/IN
the/DT
chancellor/NN
's/POS
failure/NN
to/TO
announce/VB
any/DT
new/JJ
policy/NN
measures/NNS
in/IN
his/PRP$
Mansion/NNP
House/NNP
speech/NN
last/JJ
Thursday/NNP
./.
This/DT
has/VBZ
increased/VBN
the/DT
risk/NN
of/IN
the/DT
government/NN
being/NN
forced/VBN
to/TO
increase/VB
base/NN
rates/NNS
to/TO
16/CD
%/NN
from/IN
their/PRP$
current/JJ
15/CD
%/NN
level/NN
to/TO
defend/VB
the/DT
pound/NN
,/,
economists/NNS
and/CC
foreign/JJ
exchange/NN
market/NN
analysts/NNS
say/VBP
./.
``/``
The/DT
risks/NNS
for/IN
sterling/NN
of/IN
a/DT
bad/JJ
trade/NN
figure/NN
are/VBP
very/RB
heavily/RB
on/IN
the/DT
down/JJ
side/NN
,/,
''/''
said/VBD
Chris/NNP
Dillow/NNP
,/,
senior/JJ
U.K./NNP
economist/NN
at/IN
Nomura/NNP
Research/NNP
Institute/NNP
./.
``/``
If/IN
there/EX
is/VBZ
another/DT
bad/JJ
trade/NN
number/NN
,/,
there/EX
could/MD
be/VB
an/DT
awful/JJ
lot/NN
of/IN
pressure/NN
,/,
''/''
noted/VBD
Simon/NNP
Briscoe/NNP
,/,
U.K./NNP
economist/NN
for/IN
Midland/NNP
Montagu/NNP
,/,
a/DT
unit/NN
of/IN
Midland/NNP
Bank/NNP
PLC/NNP
./.
Forecasts/NNS
for/IN
the/DT
trade/NN
figures/NNS
range/VBP
widely/RB
,/,
but/CC
few/JJ
economists/NNS
expect/VBP
the/DT
data/NNS
to/TO
show/VB
a/DT
very/RB
marked/JJ
improvement/NN
from/IN
the/DT
#/#
2/CD
billion/CD
$/$
3.2/CD
billion/CD
deficit/NN
in/IN
the/DT
current/JJ
account/NN
reported/VBN
for/IN
August/NNP
./.
The/DT
August/NNP
deficit/NN
and/CC
the/DT
#/#
2.2/CD
billion/CD
gap/NN
registered/VBN
in/IN
July/NNP
are/VBP
topped/VBN
only/RB
by/IN
the/DT
#/#
2.3/CD
billion/CD
deficit/NN
of/IN
October/NNP
1988/CD
./.
Sanjay/NNP
Joshi/NNP
,/,
European/JJ
economist/NN
at/IN
Baring/NNP
Brothers/NNP
&/CC
Co./NNP
,/,
said/VBD
there/EX
is/VBZ
no/DT
sign/NN
that/IN
Britain/NNP
's/POS
manufacturing/VBG
industry/NN
is/VBZ
transforming/VBG
itself/PRP
to/TO
boost/NN
exports/NNS
./.
At/IN
the/DT
same/JJ
time/NN
,/,
he/PRP
remains/VBZ
fairly/RB
pessimistic/JJ
about/IN
the/DT
outlook/NN
for/IN
imports/NNS
,/,
given/VBN
continued/VBD
high/JJ
consumer/NN
and/CC
capital/NN
goods/NNS
inflows/NNS
./.
He/PRP
reckons/VBZ
the/DT
current/JJ
account/NN
deficit/NN
will/MD
narrow/VB
to/TO
only/RB
#/#
1.8/CD
billion/CD
in/IN
September/NNP
./.
However/RB
,/,
Mr./NNP
Dillow/NNP
said/VBD
he/PRP
believes/VBZ
that/IN
a/DT
reduction/NN
in/IN
raw/JJ
material/NN
stockbuilding/VBG
by/IN
industry/NN
could/MD
lead/VB
to/TO
a/DT
sharp/JJ
drop/NN
in/IN
imports/NNS
./.
Combined/VBN
with/IN
at/IN
least/JJS
some/DT
rebound/NN
in/IN
exports/NNS
after/IN
August/NNP
's/POS
unexpected/JJ
decline/NN
,/,
the/DT
deficit/NN
could/MD
narrow/VB
to/TO
as/RB
little/JJ
as/IN
#/#
1.3/CD
billion/CD
./.
Mr./NNP
Briscoe/NNP
,/,
who/WP
also/RB
forecasts/VBZ
a/DT
#/#
1.3/CD
billion/CD
current/JJ
account/NN
gap/NN
,/,
warns/VBZ
that/IN
even/RB
if/IN
the/DT
trade/NN
figures/NNS
are/VBP
bullish/JJ
for/IN
sterling/NN
,/,
the/DT
currency/NN
wo/MD
n't/RB
advance/VB
much/RB
because/IN
investors/NNS
will/MD
want/VB
to/TO
see/VB
further/JJ
evidence/NN
of/IN
the/DT
turnaround/NN
before/IN
adjusting/VBG
positions/NNS
./.
Nevertheless/RB
,/,
he/PRP
noted/VBD
,/,
``/``
No/DT
one/PRP
will/MD
want/VB
to/TO
go/VB
into/IN
the/DT
trade/NN
figures/NNS
without/IN
a/DT
flat/JJ
position/NN
''/''
in/IN
the/DT
pound/NN
./.
Meanwhile/RB
,/,
overall/JJ
evidence/NN
on/IN
the/DT
economy/NN
remains/VBZ
fairly/RB
clouded/JJ
./.
In/IN
his/PRP$
Mansion/NNP
House/NNP
speech/NN
,/,
Mr./NNP
Lawson/NNP
warned/VBD
that/IN
a/DT
further/JJ
slowdown/NN
can/MD
be/VB
expected/VBN
as/IN
the/DT
impact/NN
of/IN
the/DT
last/JJ
rise/NN
in/IN
interest/NN
rates/NNS
earlier/RBR
this/DT
month/NN
takes/VBZ
effect/NN
./.
U.K./NNP
base/NN
rates/NNS
are/VBP
at/IN
their/PRP$
highest/JJS
level/NN
in/IN
eight/CD
years/NNS
./.
But/CC
consumer/NN
expenditure/NN
data/NNS
released/VBD
Friday/NNP
do/VBP
n't/RB
suggest/VB
that/IN
the/DT
U.K./NNP
economy/NN
is/VBZ
slowing/VBG
that/RB
quickly/RB
./.
The/DT
figures/NNS
show/VBP
that/DT
spending/NN
rose/VBD
0.1/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
from/IN
the/DT
second/JJ
quarter/NN
and/CC
was/VBD
up/RB
3.8/CD
%/NN
from/IN
a/DT
year/NN
ago/RB
./.
This/DT
compares/VBZ
with/IN
a/DT
1.6/CD
%/NN
rise/NN
in/IN
the/DT
second/NN
from/IN
the/DT
first/JJ
quarter/NN
and/CC
a/DT
5.4/CD
%/NN
increase/NN
from/IN
the/DT
second/JJ
quarter/NN
of/IN
1988/CD
./.
Mr./NNP
Dillow/NNP
said/VBD
the/DT
data/NNS
show/VBP
the/DT
economy/NN
``/``
is/VBZ
still/RB
quite/RB
strong/JJ
,/,
''/''
but/CC
suggestions/NNS
that/IN
much/JJ
of/IN
the/DT
spending/NN
went/VBD
on/IN
services/NNS
rather/RB
than/IN
consumer/NN
goods/NNS
should/MD
reduce/VB
fears/NNS
of/IN
more/JJR
import/NN
rises/NNS
./.
Certainly/RB
,/,
the/DT
chancellor/NN
has/VBZ
made/VBN
it/PRP
clear/JJ
that/IN
he/PRP
is/VBZ
prepared/VBN
to/TO
increase/VB
interest/NN
rates/NNS
again/RB
if/IN
necessary/JJ
to/TO
both/DT
ensure/VB
that/IN
a/DT
substantial/JJ
slowdown/NN
does/VBZ
take/VB
place/NN
and/CC
that/DT
sterling/NN
does/VBZ
n't/RB
decline/VB
further/RB
./.
Thursday/NNP
,/,
he/PRP
reminded/VBD
his/PRP$
audience/NN
that/IN
the/DT
government/NN
``/``
can/MD
not/RB
allow/VB
the/DT
necessary/JJ
rigor/NN
of/IN
monetary/JJ
policy/NN
to/TO
be/VB
undermined/VBN
by/IN
exchange/NN
rate/NN
weakness/NN
./.
''/''
Analysts/NNS
agree/VBP
there/EX
is/VBZ
little/JJ
holding/VBG
sterling/JJ
firm/NN
at/IN
the/DT
moment/NN
other/JJ
than/IN
Mr./NNP
Lawson/NNP
's/POS
promise/NN
that/IN
rates/NNS
will/MD
be/VB
pushed/VBN
higher/RBR
if/IN
necessary/JJ
./.
And/CC
,/,
they/PRP
warn/VBP
,/,
any/DT
further/JJ
drop/NN
in/IN
the/DT
government/NN
's/POS
popularity/NN
could/MD
swiftly/RB
make/VB
this/DT
promise/NN
sound/VB
hollow/JJ
./.
Sterling/NN
was/VBD
already/RB
showing/VBG
some/DT
signs/NNS
of/IN
a/DT
lack/NN
of/IN
confidence/NN
in/IN
Mr./NNP
Lawson/NNP
's/POS
promise/NN
Friday/NNP
./.
In/IN
European/JJ
trading/NN
it/PRP
declined/VBD
to/TO
$/$
1.5890/CD
and/CC
2.9495/CD
marks/NNS
from/IN
$/$
1.5940/CD
and/CC
2.9429/CD
marks/NNS
late/JJ
Thursday/NNP
./.
Economists/NNS
suggested/VBD
that/IN
if/IN
the/DT
pound/NN
falls/VBZ
much/RB
below/IN
2.90/CD
marks/NNS
,/,
the/DT
government/NN
will/MD
be/VB
forced/VBN
to/TO
increase/VB
rates/NNS
to/TO
16/CD
%/NN
,/,
both/DT
to/TO
halt/VB
any/DT
further/JJ
decline/NN
and/CC
ensure/VB
that/IN
the/DT
balance/NN
of/IN
monetary/JJ
policy/NN
remains/VBZ
unchanged/JJ
./.
Friday/NNP
's/POS
Market/NNP
Activity/NNP
The/DT
dollar/NN
posted/VBD
gains/NNS
in/IN
quiet/JJ
trading/NN
as/IN
concerns/NNS
about/IN
equities/NNS
abated/VBD
./.
Foreign/JJ
exchange/NN
dealers/NNS
said/VBD
that/IN
the/DT
currency/NN
market/NN
has/VBZ
begun/VBN
to/TO
distance/VB
itself/PRP
from/IN
the/DT
volatile/JJ
stock/NN
exchange/NN
,/,
which/WDT
has/VBZ
preoccupied/VBN
the/DT
market/NN
since/IN
Oct./NNP
13/CD
,/,
when/WRB
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
plunged/VBD
more/RBR
than/IN
190/CD
points/NNS
./.
Currency/NN
analysts/NNS
predict/VBP
that/IN
in/IN
the/DT
coming/VBG
week/NN
the/DT
foreign/JJ
exchange/NN
market/NN
will/MD
shift/VB
its/PRP$
focus/NN
back/RB
to/TO
economic/JJ
fundamentals/NNS
,/,
keeping/VBG
a/DT
close/JJ
eye/NN
out/RP
for/IN
any/DT
signs/NNS
of/IN
monetary/JJ
easing/VBG
by/IN
U.S./NNP
Federal/NNP
Reserve/NNP
./.
Late/RB
in/IN
the/DT
New/NNP
York/NNP
trading/NN
day/NN
,/,
the/DT
dollar/NN
was/VBD
quoted/VBN
at/IN
1.8578/CD
marks/NNS
,/,
up/RB
from/IN
1.8470/CD
marks/NNS
late/JJ
Thursday/NNP
in/IN
New/NNP
York/NNP
./.
The/DT
U.S./NNP
currency/NN
was/VBD
also/RB
changing/VBG
hands/NNS
at/IN
142.43/CD
yen/NN
,/,
up/RB
from/IN
141.70/CD
yen/NN
in/IN
New/NNP
York/NNP
late/JJ
Thursday/NNP
./.
In/IN
Tokyo/NNP
on/IN
Monday/NNP
,/,
the/DT
U.S./NNP
currency/NN
opened/VBD
for/IN
trading/NN
at/IN
141.95/CD
yen/NN
,/,
up/RB
from/IN
Friday/NNP
's/POS
Tokyo/NNP
close/NN
of/IN
141.35/CD
yen/NN
./.
On/IN
the/DT
Commodity/NNP
Exchange/NNP
in/IN
New/NNP
York/NNP
,/,
gold/NN
for/IN
current/JJ
delivery/NN
settled/VBN
at/IN
$/$
367.30/CD
an/DT
ounce/NN
,/,
up/RB
20/CD
cents/NNS
./.
Estimated/VBN
volume/NN
was/VBD
a/DT
light/JJ
2.4/CD
million/CD
ounces/NNS
./.
In/IN
early/RB
trading/NN
in/IN
Hong/NNP
Kong/NNP
Monday/NNP
,/,
gold/NN
was/VBD
quoted/VBN
at/IN
$/$
366.50/CD
an/DT
ounce/NN
./.
East/NNP
Rock/NNP
Partners/NNP
Limited/NNP
Partnership/NNP
said/VBD
it/PRP
proposed/VBD
to/TO
acquire/VB
A.P./NNP
Green/NNP
Industries/NNP
Inc./NNP
for/IN
$/$
40/CD
a/DT
share/NN
./.
In/IN
an/DT
Oct./NNP
19/CD
letter/NN
to/TO
A.P./NNP
Green/NNP
's/POS
board/NN
,/,
East/NNP
Rock/NNP
said/VBD
the/DT
offer/NN
is/VBZ
subject/JJ
to/TO
the/DT
signing/NN
of/IN
a/DT
merger/NN
agreement/NN
by/IN
no/RB
later/RB
than/IN
Oct./NNP
31/CD
./.
The/DT
letter/NN
,/,
attached/VBN
to/TO
a/DT
filing/NN
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
,/,
said/VBD
the/DT
approval/NN
is/VBZ
also/RB
contingent/JJ
upon/IN
obtaining/VBG
satisfactory/JJ
financing/NN
./.
An/DT
A.P./NNP
Green/NNP
official/NN
declined/VBD
to/TO
comment/VB
on/IN
the/DT
filing/NN
./.
The/DT
$/$
40-a-share/JJ
proposal/NN
values/VBZ
the/DT
company/NN
at/IN
about/RB
$/$
106.6/CD
million/CD
./.
A.P./NNP
Green/NNP
currently/RB
has/VBZ
2,664,098/CD
shares/NNS
outstanding/JJ
./.
Its/PRP$
stock/NN
closed/VBD
at/IN
$/$
38/CD
,/,
up/RB
$/$
1.875/CD
,/,
in/IN
national/JJ
over-the-counter/JJ
trading/NN
./.
The/DT
company/NN
is/VBZ
a/DT
Mexico/NNP
,/,
Mo./NNP
,/,
maker/NN
of/IN
refractory/JJ
products/NNS
./.
East/NNP
Rock/NNP
also/RB
said/VBD
in/IN
the/DT
filing/NN
that/IN
it/PRP
boosted/VBD
its/PRP$
stake/NN
in/IN
A.P./NNP
Green/NNP
to/TO
8.7/CD
%/NN
./.
It/PRP
now/RB
holds/VBZ
233,000/CD
A.P./NNP
Green/NNP
common/JJ
shares/NNS
,/,
including/VBG
30,000/CD
shares/NNS
bought/VBD
last/JJ
Thursday/NNP
for/IN
$/$
35.50/CD
to/TO
$/$
36.50/CD
a/DT
share/NN
./.
New/NNP
York-based/JJ
John/NNP
Kuhns/NNP
and/CC
Robert/NNP
MacDonald/NNP
control/VBP
East/NNP
Rock/NNP
Partners/NNP
Inc./NNP
,/,
the/DT
sole/JJ
general/JJ
partner/NN
of/IN
East/NNP
Rock/NNP
Partners/NNP
L.P/NNP
./.
The/DT
sole/JJ
limited/VBN
partner/NN
of/IN
the/DT
partnership/NN
is/VBZ
Westwood/NNP
Brick/NNP
Lime/NNP
Inc./NNP
,/,
an/DT
indirect/JJ
subsidiary/NN
of/IN
Westwood/NNP
Group/NNP
Inc/NNP
./.
Both/DT
Westwood/NNP
Brick/NNP
and/CC
Westwood/NNP
Group/NNP
are/VBP
based/VBN
in/IN
Boston/NNP
./.
Freight/NN
rates/NNS
,/,
declining/VBG
for/IN
most/JJS
of/IN
the/DT
decade/NN
because/IN
of/IN
competition/NN
spurred/VBN
by/IN
deregulation/NN
,/,
are/VBP
bottoming/VBG
out/RP
,/,
turning/VBG
upward/RB
and/CC
threatening/VBG
to/TO
fuel/VB
inflation/NN
./.
Trucking/NN
,/,
shipping/NN
and/CC
air-freight/NN
companies/NNS
have/VBP
announced/VBN
rate/NN
increases/NNS
,/,
scheduled/VBN
for/IN
this/DT
fall/NN
or/CC
early/JJ
next/JJ
year/NN
,/,
reflecting/VBG
higher/JJR
costs/NNS
and/CC
tightened/VBD
demand/NN
for/IN
freight/NN
transport/NN
./.
Major/JJ
shippers/NNS
say/VBP
they/PRP
expect/VBP
freight/NN
rates/NNS
to/TO
rise/VB
at/IN
least/JJS
as/RB
fast/RB
as/IN
inflation/NN
and/CC
maybe/RB
faster/RBR
in/IN
the/DT
next/JJ
few/JJ
years/NNS
./.
That/DT
's/VBZ
a/DT
big/JJ
change/NN
from/IN
recent/JJ
years/NNS
when/WRB
freight/NN
haulage/NN
was/VBD
a/DT
bright/JJ
spot/NN
for/IN
U.S./NNP
productivity/NN
,/,
helping/VBG
to/TO
restrain/VB
inflation/NN
and/CC
make/VB
U.S./NNP
industry/NN
more/RBR
competitive/JJ
abroad/RB
./.
``/``
Demand/NN
has/VBZ
caught/VBN
up/RP
with/IN
the/DT
supply/NN
of/IN
certain/JJ
types/NNS
of/IN
freight/NN
transportation/NN
,/,
and/CC
rates/NNS
are/VBP
starting/VBG
to/TO
move/VB
up/RB
''/''
at/IN
a/DT
rate/NN
``/``
close/JJ
to/TO
or/CC
slightly/RB
more/JJR
than/IN
the/DT
inflation/NN
rate/NN
,/,
''/''
said/VBD
Clifford/NNP
Sayre/NNP
,/,
director/NN
of/IN
logistics/NNS
at/IN
Du/NNP
Pont/NNP
Co/NNP
./.
Shippers/NNS
surveyed/VBD
recently/RB
by/IN
Ohio/NNP
State/NNP
University/NNP
said/VBD
they/PRP
expect/VBP
their/PRP$
freight-transport/NN
,/,
storage/NN
and/CC
distribution/NN
costs/NNS
to/TO
rise/VB
about/RB
4/CD
%/NN
this/DT
year/NN
./.
Only/RB
10/CD
%/NN
of/IN
the/DT
250/CD
shippers/NNS
polled/VBN
expected/VBD
their/PRP$
freight-transport/JJ
costs/NNS
to/TO
decrease/VB
,/,
compared/VBN
with/IN
30/CD
%/NN
who/WP
had/VBD
looked/VBN
to/TO
freight/VB
transport/NN
to/TO
reduce/VB
costs/NNS
in/IN
past/JJ
years/NNS
./.
``/``
This/DT
is/VBZ
the/DT
first/JJ
year/NN
since/IN
transportation/NN
deregulation/NN
in/IN
1980/CD
that/IN
we/PRP
have/VBP
had/VBD
such/JJ
a/DT
dramatic/JJ
and/CC
broad-based/JJ
upturn/NN
in/IN
perceived/VBN
transportation/NN
rates/NNS
,/,
''/''
said/VBD
Bernard/NNP
LaLonde/NNP
,/,
a/DT
transportation/NN
logistics/NNS
professor/NN
at/IN
Ohio/NNP
State/NNP
in/IN
Columbus/NNP
./.
The/DT
deregulation/NN
of/IN
railroads/NNS
and/CC
trucking/NN
companies/NNS
that/WDT
began/VBD
in/IN
1980/CD
enabled/VBD
shippers/NNS
to/TO
bargain/VB
for/IN
transportation/NN
./.
Carriers/NNS
could/MD
use/VB
their/PRP$
equipment/NN
more/RBR
efficiently/RB
,/,
leading/VBG
to/TO
overcapacity/NN
they/PRP
were/VBD
eager/JJ
to/TO
fill/VB
./.
Shippers/NNS
cut/VBN
about/RB
$/$
35/CD
billion/CD
from/IN
their/PRP$
annual/JJ
,/,
inter-city/JJ
truck/NN
and/CC
rail/NN
costs/NNS
,/,
to/TO
about/RB
$/$
150/CD
billion/CD
,/,
or/CC
about/RB
6.4/CD
%/NN
of/IN
gross/JJ
national/JJ
product/NN
,/,
down/RB
from/IN
8/CD
%/NN
of/IN
GNP/NNP
in/IN
1981/CD
./.
But/CC
with/IN
much/JJ
of/IN
the/DT
inefficiency/NN
squeezed/VBD
out/RB
of/IN
the/DT
freight-transport/JJ
system/NN
,/,
rising/VBG
costs/NNS
are/VBP
likely/JJ
to/TO
be/VB
reflected/VBN
directly/RB
in/IN
higher/JJR
freight/NN
rates/NNS
./.
``/``
Shippers/NNP
are/VBP
saying/VBG
`/``
the/DT
party/NN
's/VBZ
over/JJ
,/,
'/''
''/''
said/VBD
Mr./NNP
LaLonde/NNP
./.
``/``
Shippers/NNP
wo/MD
n't/RB
be/VB
able/JJ
to/TO
look/VB
for/IN
transportation-cost/JJ
savings/NNS
as/IN
they/PRP
have/VBP
for/IN
the/DT
last/JJ
eight/CD
or/CC
nine/CD
years/NNS
./.
Transport/NN
rates/NNS
wo/MD
n't/RB
be/VB
an/DT
opportunity/NN
for/IN
offsetting/VBG
cost/NN
increases/NNS
in/IN
other/JJ
segments/NNS
of/IN
the/DT
economy/NN
./.
''/''
Robert/NNP
Delaney/NNP
,/,
a/DT
consultant/NN
at/IN
Arthur/NNP
D./NNP
Little/NNP
Inc./NNP
,/,
Cambridge/NNP
,/,
Mass./NNP
,/,
said/VBD
``/``
We/PRP
've/VBP
gotten/VBN
all/DT
the/DT
benefits/NNS
of/IN
deregulation/NN
in/IN
freight-cost/JJ
reductions/NNS
./.
Now/RB
we/PRP
are/VBP
starting/VBG
to/TO
see/VB
real/JJ
freight-rate/JJ
increases/NNS
as/IN
carriers/NNS
replace/VBP
equipment/NN
,/,
pay/VBP
higher/JJR
fuel/NN
costs/NNS
and/CC
pay/VBP
more/JJR
for/IN
labor/NN
./.
You/PRP
'll/MD
see/VB
carriers/NNS
try/VBP
to/TO
recoup/VB
some/DT
of/IN
the/DT
price/NN
cutting/NN
that/WDT
occurred/VBD
previously/RB
./.
''/''
Not/RB
everyone/NN
believes/VBZ
that/IN
the/DT
good/JJ
times/NNS
are/VBP
over/JJ
for/IN
shippers/NNS
./.
``/``
There/EX
's/VBZ
still/RB
a/DT
lot/NN
of/IN
pressure/NN
on/IN
rates/NNS
in/IN
both/DT
rail/NN
and/CC
truck/NN
,/,
''/''
said/VBD
Gerard/NNP
McCullough/NNP
,/,
lecturer/NN
in/IN
transportation/NN
at/IN
Massachusetts/NNP
Institute/NNP
of/IN
Technology/NNP
./.
Less-than-truckload/JJ
companies/NNS
,/,
which/WDT
carry/VBP
the/DT
freight/NN
of/IN
several/JJ
shippers/NNS
in/IN
each/DT
truck/NN
trailer/NN
,/,
discounted/VBD
away/RB
a/DT
4.7/CD
%/NN
rate/NN
increase/NN
implemented/VBD
last/JJ
April/NNP
./.
The/DT
carriers/NNS
were/VBD
competing/VBG
fiercely/RB
for/IN
market/NN
share/NN
./.
Railroad-rate/JJ
increases/NNS
are/VBP
likely/JJ
to/TO
be/VB
restrained/VBN
by/IN
weakening/VBG
rail-traffic/JJ
levels/NNS
and/CC
keen/JJ
competition/NN
for/IN
freight/NN
from/IN
trucks/NNS
./.
An/DT
official/NN
at/IN
Consolidated/NNP
Freightways/NNP
Inc./NNP
,/,
a/DT
Menlo/NNP
Park/NNP
,/,
Calif./NNP
,/,
less-than-truckload/JJ
carrier/NN
,/,
said/VBD
rate/NN
discounting/NN
in/IN
that/DT
industry/NN
has/VBZ
begun/VBN
to/TO
``/``
stabilize/VB
./.
''/''
Consolidated/NNP
Freightways/NNP
plans/VBZ
to/TO
raise/VB
its/PRP$
rates/NNS
5.3/CD
%/NN
late/RB
this/DT
year/NN
or/CC
early/RB
next/JJ
year/NN
,/,
and/CC
at/IN
least/JJS
two/CD
competitors/NNS
have/VBP
announced/VBN
similar/JJ
increases/NNS
./.
Truckers/NNS
are/VBP
``/``
trying/VBG
to/TO
send/VB
signals/NNS
that/IN
they/PRP
need/VBP
to/TO
stop/VB
the/DT
bloodletting/VBG
,/,
forget/VB
about/IN
market/NN
share/NN
and/CC
go/VB
for/IN
higher/JJR
rates/NNS
,/,
''/''
said/VBD
Michael/NNP
Lloyd/NNP
,/,
an/DT
analyst/NN
at/IN
Salomon/NNP
Bros/NNP
./.
And/CC
``/``
shippers/NNS
are/VBP
getting/VBG
the/DT
feeling/NN
that/IN
they/PRP
have/VBP
played/VBN
one/CD
trucker/NN
off/RP
against/IN
another/DT
as/RB
much/RB
as/IN
they/PRP
can/MD
,/,
''/''
he/PRP
said/VBD
./.
Air-freight/NN
carriers/NNS
raised/VBD
their/PRP$
rates/NNS
for/IN
U.S./NNP
products/NNS
going/VBG
across/IN
the/DT
Pacific/NNP
to/TO
Asia/NNP
by/IN
about/RB
20/CD
%/NN
earlier/RBR
this/DT
month/NN
./.
And/CC
Japan/NNP
Air/NNP
Lines/NNP
said/VBD
it/PRP
plans/VBZ
to/TO
boost/VB
its/PRP$
rates/NNS
a/DT
further/JJR
25/CD
%/NN
over/IN
the/DT
next/JJ
two/CD
years/NNS
./.
Such/JJ
rate/NN
increases/NNS
``/``
will/MD
increase/VB
the/DT
total/JJ
cost/NN
of/IN
U.S./NNP
products/NNS
and/CC
slow/VB
down/RP
the/DT
rate/NN
of/IN
increase/NN
of/IN
U.S./NNP
exports/NNS
,/,
''/''
said/VBD
Richard/NNP
Connors/NNP
,/,
a/DT
senior/JJ
vice/NN
president/NN
of/IN
Yusen/NNP
Air/NNP
&/CC
Sea/NNP
Service/NNP
U.S.A./NNP
Inc./NNP
,/,
the/DT
U.S./NNP
air-freight-forwarding/JJ
subsidiary/NN
of/IN
Nippon/NNP
Yusen/NNP
Kaisha/NNP
of/IN
Japan/NNP
./.
Ship/NN
companies/NNS
carrying/VBG
bulk/JJ
commodities/NNS
,/,
such/JJ
as/IN
oil/NN
,/,
grain/NN
,/,
coal/NN
and/CC
iron/NN
ore/NN
,/,
have/VBP
been/VBN
able/JJ
to/TO
increase/VB
their/PRP$
rates/NNS
in/IN
the/DT
last/JJ
couple/NN
of/IN
years/NNS
./.
Some/DT
bulk/NN
shipping/NN
rates/NNS
have/VBP
increased/VBN
``/``
3/CD
%/NN
to/TO
4/CD
%/NN
in/IN
the/DT
past/JJ
few/JJ
months/NNS
,/,
''/''
said/VBD
Salomon/NNP
's/POS
Mr./NNP
Lloyd/NNP
./.
And/CC
ship/NN
lines/NNS
carrying/VBG
containers/NNS
are/VBP
also/RB
trying/VBG
to/TO
raise/VB
their/PRP$
rates/NNS
./.
Carriers/NNS
boosted/VBD
rates/NNS
more/JJR
than/IN
10/CD
%/NN
in/IN
the/DT
North/NNP
Atlantic/NNP
between/IN
the/DT
U.S./NNP
and/CC
Europe/NNP
last/JJ
September/NNP
,/,
hoping/VBG
to/TO
partly/RB
restore/VB
rates/NNS
to/TO
earlier/JJR
levels/NNS
./.
Ship/NN
lines/NNS
operating/VBG
in/IN
the/DT
Pacific/NNP
plan/VBP
to/TO
raise/VB
rates/NNS
on/IN
containers/NNS
carrying/VBG
U.S./NNP
exports/NNS
to/TO
Asia/NNP
about/RB
10/CD
%/NN
,/,
effective/JJ
next/JJ
April/NNP
./.
MGM/NNP
Grand/NNP
Inc./NNP
said/VBD
it/PRP
filed/VBD
a/DT
registration/NN
statement/NN
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
for/IN
a/DT
public/JJ
offering/NN
of/IN
six/CD
million/CD
common/JJ
shares/NNS
./.
The/DT
Beverly/NNP
Hills/NNP
,/,
Calif.-based/JJ
company/NN
said/VBD
it/PRP
would/MD
have/VB
26.9/CD
million/CD
common/JJ
shares/NNS
outstanding/JJ
after/IN
the/DT
offering/NN
./.
The/DT
hotel/NN
and/CC
Gaming/NN
company/NN
said/VBD
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
will/MD
lead/VB
the/DT
underwriters/NNS
./.
Proceeds/NNS
from/IN
the/DT
sale/NN
will/MD
be/VB
used/VBN
for/IN
remodeling/VBG
and/CC
refurbishing/VBG
projects/NNS
,/,
as/RB
well/RB
as/IN
for/IN
the/DT
planned/VBN
MGM/NNP
Grand/NNP
hotel\/casino/NN
and/CC
theme/NN
park/NN
./.
Bob/NNP
Stone/NNP
stewed/VBD
over/IN
a/DT
letter/NN
from/IN
his/PRP$
manager/NN
putting/VBG
him/PRP
on/IN
probation/NN
for/IN
insubordination/NN
./.
Mr./NNP
Stone/NNP
thought/VBD
the/DT
discipline/NN
was/VBD
unfair/JJ
;/:
he/PRP
believed/VBD
that/IN
his/PRP$
manager/NN
wanted/VBD
to/TO
get/VB
rid/JJ
of/IN
him/PRP
for/IN
personal/JJ
reasons/NNS
./.
Unable/JJ
to/TO
persuade/VB
the/DT
manager/NN
to/TO
change/VB
his/PRP$
decision/NN
,/,
he/PRP
went/VBD
to/TO
a/DT
``/``
company/NN
court/NN
''/''
for/IN
a/DT
hearing/NN
./.
At/IN
the/DT
scheduled/VBN
time/NN
,/,
Mr./NNP
Stone/NNP
entered/VBD
a/DT
conference/NN
room/NN
in/IN
a/DT
building/NN
near/IN
where/WRB
he/PRP
worked/VBD
./.
After/IN
the/DT
three/CD
members/NNS
of/IN
the/DT
court/NN
introduced/VBN
themselves/PRP
,/,
the/DT
chairman/NN
of/IN
the/DT
panel/NN
said/VBD
:/:
``/``
Go/VB
ahead/RB
and/CC
tell/VB
us/PRP
what/WP
happened/VBD
./.
We/PRP
may/MD
ask/VB
questions/NNS
as/IN
you/PRP
go/VBP
along/RP
,/,
or/CC
we/PRP
may/MD
wait/VB
until/IN
the/DT
end/NN
./.
''/''
No/DT
lawyers/NNS
or/CC
tape/NN
recorders/NNS
were/VBD
present/JJ
./.
The/DT
only/JJ
extra/JJ
people/NNS
were/VBD
a/DT
couple/NN
of/IN
personnel/NNS
specialists/NNS
,/,
one/CD
of/IN
whom/WP
knew/VBD
Mr./NNP
Stone/NNP
's/POS
case/NN
intimately/RB
and/CC
would/MD
help/VB
fill/VB
in/RP
any/DT
facts/NNS
needed/VBD
to/TO
give/VB
the/DT
court/NN
the/DT
full/JJ
picture/NN
./.
Over/IN
a/DT
cup/NN
of/IN
coffee/NN
,/,
Mr./NNP
Stone/NNP
told/VBD
his/PRP$
story/NN
./.
He/PRP
talked/VBD
about/RB
20/CD
minutes/NNS
./.
When/WRB
he/PRP
was/VBD
through/JJ
,/,
the/DT
court/NN
members/NNS
asked/VBD
many/JJ
questions/NNS
,/,
then/RB
the/DT
chairman/NN
said/VBD
they/PRP
would/MD
like/VB
to/TO
hear/VB
his/PRP$
manager/NN
's/POS
side/NN
and/CC
talk/VB
to/TO
witnesses/NNS
./.
The/DT
chairman/NN
promised/VBD
Mr./NNP
Stone/NNP
a/DT
decision/NN
within/IN
two/CD
weeks/NNS
./.
Bob/NNP
Stone/NNP
is/VBZ
a/DT
fictional/JJ
name/NN
,/,
but/CC
the/DT
incident/NN
described/VBN
is/VBZ
real/JJ
./.
It/PRP
happened/VBD
at/IN
Northrop/NNP
Corp./NNP
in/IN
Los/NNP
Angeles/NNP
./.
The/DT
court/NN
is/VBZ
called/VBN
the/DT
Management/NNP
Appeals/NNP
Committee/NNP
,/,
or/CC
just/RB
``/``
MAC/NNP
,/,
''/''
and/CC
it/PRP
is/VBZ
likely/JJ
to/TO
hear/VB
a/DT
couple/NN
of/IN
dozen/NN
cases/NNS
a/DT
year/NN
./.
Alter/VB
some/DT
details/NNS
of/IN
this/DT
example/NN
and/CC
it/PRP
could/MD
be/VB
taking/VBG
place/NN
today/NN
at/IN
Federal/NNP
Express/NNP
in/IN
Memphis/NNP
,/,
the/DT
Defense/NNP
and/CC
Underseas/NNP
Systems/NNP
divisions/NNS
of/IN
Honeywell/NNP
in/IN
Minneapolis/NNP
,/,
a/DT
General/NNP
Electric/NNP
plant/NN
in/IN
Columbia/NNP
,/,
Md./NNP
,/,
or/CC
a/DT
number/NN
of/IN
other/JJ
companies/NNS
./.
These/DT
firms/NNS
are/VBP
pioneers/NNS
in/IN
a/DT
significant/JJ
new/JJ
trend/NN
in/IN
the/DT
corporate/JJ
world/NN
:/:
the/DT
rise/NN
of/IN
what/WP
I/PRP
call/VBP
corporate/JJ
due/JJ
process/NN
./.
Although/IN
corporate/JJ
due/JJ
process/NN
is/VBZ
practiced/VBN
today/NN
in/IN
few/JJ
companies/NNS
--/:
perhaps/RB
40/CD
to/TO
60/CD
--/:
it/PRP
is/VBZ
one/CD
of/IN
the/DT
fastest/JJS
developing/VBG
trends/NNS
in/IN
industry/NN
./.
In/IN
the/DT
coming/JJ
decade/NN
a/DT
majority/NN
of/IN
people-oriented/JJ
companies/NNS
are/VBP
likely/JJ
to/TO
adopt/VB
it/PRP
./.
Corporate/JJ
due/JJ
process/NN
appeals/NNS
to/TO
management/NN
for/IN
a/DT
variety/NN
of/IN
reasons/NNS
./.
It/PRP
reduces/VBZ
lawsuits/NNS
from/IN
disgruntled/VBN
employees/NNS
and/CC
ex-employees/NNS
,/,
with/IN
all/DT
that/DT
means/VBZ
for/IN
reduced/VBN
legal/JJ
costs/NNS
and/CC
better/JJR
public/JJ
relations/NNS
./.
It/PRP
helps/VBZ
to/TO
keep/VB
out/RP
unions/NNS
./.
It/PRP
increases/VBZ
employee/NN
commitment/NN
to/TO
the/DT
company/NN
,/,
with/IN
all/DT
that/DT
means/VBZ
for/IN
efficiency/NN
and/CC
quality/NN
control/NN
./.
What/WP
must/MD
your/PRP$
management/NN
team/NN
do/VB
to/TO
establish/VB
corporate/JJ
due/JJ
process/NN
?/.
Here/RB
are/VBP
four/CD
key/JJ
steps/NNS
:/:
1/LS
./.
Make/VB
sure/JJ
you/PRP
have/VBP
a/DT
strong/JJ
personnel/NNS
department/NN
./.
It/PRP
must/MD
be/VB
able/JJ
to/TO
handle/VB
most/JJS
of/IN
the/DT
complaints/NNS
that/WDT
can/MD
not/RB
be/VB
solved/VBN
in/IN
the/DT
trenches/NNS
by/IN
managers/NNS
and/CC
their/PRP$
subordinates/NNS
,/,
else/RB
the/DT
company/NN
court/NN
or/CC
adjudicators/NNS
will/MD
be/VB
inundated/VBN
with/IN
cases/NNS
./.
At/IN
Polaroid/NNP
,/,
the/DT
Personnel/NNP
Policy/NNP
Planning/NNP
Committee/NNP
may/MD
hear/VB
only/RB
about/RB
20/CD
cases/NNS
a/DT
year/NN
;/:
the/DT
rest/NN
of/IN
the/DT
many/JJ
hundreds/NNS
of/IN
complaints/NNS
are/VBP
resolved/VBN
at/IN
earlier/JJR
stages/NNS
./.
At/IN
TWA/NNP
,/,
the/DT
System/NNP
Board/NNP
of/IN
Adjustment/NNP
hears/VBZ
50/CD
to/TO
75/CD
cases/NNS
a/DT
year/NN
,/,
only/RB
a/DT
fraction/NN
of/IN
the/DT
complaints/NNS
brought/VBN
to/TO
personnel/NNS
specialists/NNS
./.
At/IN
Citicorp/NNP
,/,
the/DT
Problem/NNP
Review/NNP
Board/NNP
may/MD
hear/VB
only/RB
12/CD
or/CC
so/RB
cases/NNS
because/IN
of/IN
personnel/NNS
's/POS
skill/NN
in/IN
complaint-resolution/NN
./.
In/IN
a/DT
typical/JJ
year/NN
,/,
up/IN
to/TO
20/CD
%/NN
of/IN
the/DT
work/NN
force/NN
goes/VBZ
to/TO
personnel/NNS
specialists/NNS
with/IN
complaints/NNS
of/IN
unfair/JJ
treatment/NN
./.
In/IN
a/DT
large/JJ
company/NN
that/DT
means/VBZ
many/JJ
hundreds/NNS
of/IN
complaints/NNS
for/IN
personnel/NNS
to/TO
handle/VB
./.
2/LS
./.
Formally/RB
or/CC
informally/RB
,/,
train/VB
all/DT
your/PRP$
managers/NNS
and/CC
supervisors/NNS
in/IN
the/DT
company/NN
's/POS
due-process/NN
approach/NN
./.
See/VB
that/IN
they/PRP
know/VBP
company/NN
personnel/NNS
policy/NN
backwards/RB
and/CC
forwards/RB
,/,
for/IN
it/PRP
is/VBZ
the/DT
``/``
law/NN
''/''
governing/VBG
company/NN
courts/NNS
and/CC
adjudicators/NNS
./.
Coach/VB
them/PRP
in/IN
handling/VBG
complaints/NNS
so/RB
that/IN
they/PRP
can/MD
resolve/VB
problems/NNS
immediately/RB
./.
In/IN
case/NN
managers/NNS
and/CC
personnel/NNS
specialists/NNS
are/VBP
unsuccessful/JJ
and/CC
subordinates/NNS
take/VBP
their/PRP$
complaints/NNS
to/TO
a/DT
company/NN
court/NN
or/CC
adjudicator/NN
,/,
teach/VB
managers/NNS
to/TO
accept/VB
reversals/NNS
as/IN
a/DT
fact/NN
of/IN
business/NN
life/NN
,/,
for/IN
in/IN
a/DT
good/JJ
due-process/NN
system/NN
they/PRP
are/VBP
bound/VBN
to/TO
happen/VB
./.
In/IN
the/DT
15/CD
companies/NNS
I/PRP
studied/VBD
,/,
reversal/NN
rates/NNS
range/VBP
on/IN
the/DT
average/NN
from/IN
20/CD
%/NN
to/TO
40/CD
%/NN
./.
3/LS
./.
Decide/VB
whether/CC
you/PRP
want/VBP
a/DT
panel/NN
system/NN
or/CC
a/DT
single/JJ
adjudicator/NN
./.
A/DT
panel/NN
system/NN
like/IN
that/DT
in/IN
the/DT
Bob/NNP
Stone/NNP
example/NN
enjoys/VBZ
such/JJ
advantages/NNS
as/IN
high/JJ
credibility/NN
and/CC
,/,
for/IN
the/DT
panelists/NNS
,/,
mutual/JJ
support/NN
./.
An/DT
adjudicator/NN
system/NN
--/:
that/DT
is/VBZ
,/,
an/DT
investigator/NN
who/WP
acts/VBZ
first/RB
as/IN
a/DT
fact-finder/NN
and/CC
then/RB
switches/VBZ
hats/NNS
and/CC
arbitrates/VBZ
the/DT
facts/NNS
--/:
has/VBZ
such/JJ
advantages/NNS
as/IN
speed/NN
,/,
flexibility/NN
and/CC
maximum/NN
privacy/NN
./.
International/NNP
Business/NNP
Machines/NNP
and/CC
Bank/NNP
of/IN
America/NNP
are/VBP
among/IN
the/DT
companies/NNS
using/VBG
the/DT
single-adjudicator/JJ
approach/NN
./.
4/LS
./.
Make/VB
your/PRP$
due-process/NN
system/NN
visible/JJ
./.
It/PRP
wo/MD
n't/RB
do/VB
any/DT
good/JJ
for/IN
anybody/NN
unless/IN
employees/NNS
know/VBP
about/IN
it/PRP
./.
Most/JJS
managements/NNS
hesitate/VBP
to/TO
go/VB
all/DT
out/RP
in/IN
advertising/VBG
their/PRP$
due-process/NN
systems/NNS
for/IN
fear/NN
of/IN
encouraging/JJ
cranks/NNS
and/CC
chronic/NN
soreheads/NNS
to/TO
file/VB
complaints/NNS
./.
On/IN
the/DT
other/JJ
hand/NN
,/,
they/PRP
make/VBP
sure/RB
at/IN
a/DT
minimum/NN
that/IN
their/PRP$
systems/NNS
are/VBP
described/VBN
in/IN
their/PRP$
employee/NN
handbooks/NNS
and/CC
talked/VBD
up/RP
by/IN
personnel/NNS
specialists/NNS
./.
Smith-Kline/NNP
Beecham/NNP
goes/VBZ
further/RBR
and/CC
sometimes/RB
features/VBZ
its/PRP$
grievance/NN
procedure/NN
in/IN
closed-circuit/JJ
TV/NN
programs/NNS
./.
Naturally/RB
,/,
one/CD
of/IN
the/DT
best/JJS
ways/NNS
to/TO
guarantee/VB
visibility/NN
for/IN
your/PRP$
due-process/NN
system/NN
is/VBZ
for/IN
top/JJ
management/NN
to/TO
support/VB
it/PRP
./.
At/IN
IBM/NNP
,/,
the/DT
company/NN
's/POS
Open/NNP
Door/NNP
system/NN
is/VBZ
sometimes/RB
the/DT
subject/NN
of/IN
memorandums/NNS
from/IN
the/DT
chief/JJ
executive/NN
./.
Federal/NNP
Express/NNP
goes/VBZ
further/RBR
in/IN
this/DT
respect/NN
than/IN
any/DT
company/NN
I/PRP
know/VBP
of/IN
with/IN
both/DT
Frederick/NNP
Smith/NNP
and/CC
James/NNP
Barksdale/NNP
,/,
chief/JJ
executive/NN
and/CC
chief/NN
operating/NN
officer/NN
,/,
respectively/RB
,/,
sitting/VBG
in/RP
on/IN
the/DT
Appeals/NNP
Board/NNP
almost/RB
every/DT
Tuesday/NNP
to/TO
decide/VB
cases/NNS
./.
Mr./NNP
Ewing/NNP
is/VBZ
a/DT
consultant/NN
based/VBN
in/IN
Winchester/NNP
,/,
Mass./NNP
,/,
and/CC
author/NN
of/IN
``/``
Justice/NNP
on/IN
the/DT
Job/NNP
:/:
Resolving/NNP
Grievances/NNP
in/IN
the/DT
Nonunion/NNP
Workplace/NNP
''/''
(/(
Harvard/NNP
Business/NNP
School/NNP
Press/NNP
,/,
1989/CD
Tokyo/NNP
stocks/NNS
closed/VBD
higher/RBR
in/IN
active/JJ
trading/NN
Friday/NNP
,/,
marking/VBG
the/DT
fourth/JJ
consecutive/JJ
daily/JJ
gain/NN
since/IN
Monday/NNP
's/POS
sharp/JJ
fall/NN
./.
London/NNP
shares/NNS
closed/VBD
moderately/RB
lower/RBR
in/IN
thin/JJ
trading/NN
./.
At/IN
Tokyo/NNP
,/,
the/DT
Nikkei/NNP
index/NN
of/IN
225/CD
selected/VBN
issues/NNS
was/VBD
up/RB
112.16/CD
points/NNS
to/TO
35486.38/CD
./.
The/DT
index/NN
advanced/VBD
266.66/CD
points/NNS
Thursday/NNP
./.
In/IN
early/RB
trading/NN
in/IN
Tokyo/NNP
Monday/NNP
,/,
the/DT
Nikkei/NNP
index/NN
rose/VBD
101.98/CD
points/NNS
to/TO
35588.36/CD
./.
Friday/NNP
's/POS
volume/NN
on/IN
the/DT
First/JJ
Section/NNP
was/VBD
estimated/VBN
at/IN
one/CD
billion/CD
shares/NNS
,/,
up/RB
from/IN
862/CD
million/CD
Thursday/NNP
./.
Winners/NNS
outpaced/VBD
losers/NNS
,/,
572/CD
to/TO
368/CD
,/,
while/IN
181/CD
issues/NNS
remained/VBD
unchanged/JJ
./.
With/IN
investors/NNS
relieved/VBN
at/IN
the/DT
overnight/JJ
gain/NN
in/IN
New/NNP
York/NNP
stocks/NNS
,/,
small-lot/JJ
buying/NN
orders/NNS
streamed/VBD
into/IN
the/DT
market/NN
from/IN
early/JJ
morning/NN
,/,
making/VBG
traders/NNS
believe/VB
the/DT
market/NN
was/VBD
back/RB
to/TO
normal/JJ
./.
The/DT
Nikkei/NNP
,/,
which/WDT
reached/VBD
as/RB
high/JJ
as/IN
35611.38/CD
right/RB
after/IN
the/DT
opening/NN
,/,
surrendered/VBD
part/NN
of/IN
its/PRP$
early/JJ
advance/NN
toward/IN
the/DT
end/NN
of/IN
the/DT
day/NN
because/IN
of/IN
profit-taking/NN
./.
``/``
Investors/NNS
,/,
especially/RB
dealers/NNS
,/,
do/VBP
n't/RB
want/VB
to/TO
hold/VB
a/DT
position/NN
over/IN
the/DT
weekend/NN
,/,
''/''
a/DT
trader/NN
at/IN
Dai-ichi/NNP
Securities/NNP
said/VBD
,/,
adding/VBG
,/,
though/IN
,/,
that/IN
the/DT
trading/NN
mood/NN
remained/VBD
positive/JJ
through/IN
the/DT
afternoon/NN
session/NN
./.
The/DT
Tokyo/NNP
Stock/NNP
Price/NNP
Index/NNP
Topix/NNP
all/DT
issues/NNS
listed/VBN
in/IN
the/DT
First/JJ
Section/NNP
,/,
which/WDT
gained/VBD
22.78/CD
points/NNS
Thursday/NNP
,/,
was/VBD
up/RB
14.06/CD
points/NNS
,/,
or/CC
0.53/CD
%/NN
,/,
at/IN
2679.72/CD
./.
The/DT
Second/NNP
Section/NNP
index/NN
,/,
which/WDT
rose/VBD
15.72/CD
points/NNS
Thursday/NNP
,/,
was/VBD
up/RB
11.88/CD
points/NNS
,/,
or/CC
0.32/CD
%/NN
,/,
to/TO
close/VB
at/IN
3717.46/CD
./.
Volume/NN
in/IN
the/DT
second/JJ
section/NN
was/VBD
estimated/VBN
at/IN
30/CD
million/CD
shares/NNS
,/,
up/RB
from/IN
28/CD
million/CD
Thursday/NNP
./.
In/IN
turmoil/NN
caused/VBN
by/IN
the/DT
previous/JJ
Friday/NNP
's/POS
plunge/NN
in/IN
New/NNP
York/NNP
stocks/NNS
,/,
the/DT
Nikkei/NNP
marked/VBD
a/DT
sharp/JJ
647.33-point/JJ
fall/NN
Monday/NNP
./.
But/CC
the/DT
Nikkei/NNP
fell/VBD
an/DT
overall/JJ
1.8/CD
%/NN
in/IN
value/NN
that/DT
day/NN
compared/VBN
with/IN
Wall/NNP
Street/NNP
's/VBZ
far/RB
sharper/JJR
6.9/CD
%/NN
drop/NN
on/IN
Oct./NNP
13/CD
./.
The/DT
Tokyo/NNP
market/NN
's/POS
resiliency/NN
helped/VBD
participants/NNS
to/TO
regain/VB
confidence/NN
gradually/RB
as/IN
they/PRP
spent/VBD
more/JJR
time/NN
on/IN
analyzing/NN
factors/NNS
that/WDT
caused/VBD
the/DT
Friday/NNP
plunge/NN
and/CC
realized/VBD
these/DT
problems/NNS
were/VBD
unique/JJ
to/TO
New/NNP
York/NNP
stocks/NNS
and/CC
not/RB
directly/RB
related/VBN
to/TO
Tokyo/NNP
./.
The/DT
Nikkei/NNP
continued/VBD
to/TO
gain/VB
for/IN
the/DT
rest/NN
of/IN
the/DT
week/NN
,/,
adding/VBG
1017.69/CD
points/NNS
in/IN
four/CD
days/NNS
--/:
more/RBR
than/IN
erasing/VBG
Monday/NNP
's/POS
losses/NNS
./.
But/CC
further/JJ
major/JJ
advances/NNS
on/IN
the/DT
Nikkei/NNP
are/VBP
n't/RB
foreseen/VBN
this/DT
week/NN
by/IN
market/NN
observers/NNS
./.
Investors/NNS
are/VBP
still/RB
waiting/VBG
to/TO
see/VB
how/WRB
the/DT
U.S./NNP
government/NN
will/MD
decide/VB
on/IN
interest/NN
rates/NNS
and/CC
how/WRB
the/DT
dollar/NN
will/MD
be/VB
stabilized/VBN
./.
Some/DT
high-priced/JJ
issues/NNS
made/VBD
a/DT
comeback/NN
Friday/NNP
./.
Pioneer/NNP
surged/VBD
450/CD
yen/NNS
$/$
3.16/CD
6,050/CD
yen/NNS
$/$
42.60/CD
Kyocera/NNP
advanced/VBN
80/CD
yen/NNS
to/TO
5,440/CD
./.
Fanuc/NNP
gained/VBD
100/CD
to/TO
7,580/CD
./.
Breweries/NNS
attracted/VBD
investors/NNS
because/IN
of/IN
their/PRP$
land/NN
property/NN
holdings/NNS
that/WDT
could/MD
figure/VB
in/IN
development/NN
or/CC
other/JJ
plans/NNS
,/,
traders/NNS
said/VBD
./.
Sapporo/NNP
gained/VBD
80/CD
to/TO
1,920/CD
and/CC
Kirin/NNP
added/VBD
60/CD
to/TO
2,070/CD
./.
Housings/NNS
,/,
constructions/NNS
and/CC
pharmaceuticals/NNS
continued/VBD
to/TO
be/VB
bought/VBN
following/VBG
Thursday/NNP
's/POS
gains/NNS
because/IN
of/IN
strong/JJ
earnings/NNS
outlooks/NNS
./.
Daiwa/NNP
House/NNP
gained/VBD
50/CD
to/TO
2,660/CD
./.
Misawa/NNP
Homes/NNP
was/VBD
up/RB
20/CD
at/IN
2,960/CD
./.
Kajima/NNP
advanced/VBD
40/CD
to/TO
2,120/CD
and/CC
Ohbayashi/NNP
added/VBD
50/CD
to/TO
1,730/CD
./.
Fujisawa/NNP
added/VBD
80/CD
to/TO
2,010/CD
and/CC
Mochida/NNP
advanced/VBD
230/CD
to/TO
4,400/CD
./.
London/NNP
share/NN
prices/NNS
were/VBD
influenced/VBN
largely/RB
by/IN
declines/NNS
on/IN
Wall/NNP
Street/NNP
and/CC
weakness/NN
in/IN
the/DT
British/JJ
pound/NN
./.
The/DT
key/JJ
Financial/NNP
Times-Stock/NNP
Exchange/NNP
100-share/JJ
index/NN
ended/VBD
10.2/CD
points/NNS
lower/RBR
at/IN
2179.1/CD
,/,
above/RB
its/PRP$
intraday/NN
low/JJ
of/IN
2176.9/CD
,/,
but/CC
off/RB
the/DT
day/NN
's/VBZ
high/JJ
of/IN
2189/CD
./.
The/DT
index/NN
finished/VBD
2.4/CD
%/NN
under/IN
its/PRP$
close/NN
of/IN
2233.9/CD
the/DT
previous/JJ
Friday/NNP
,/,
although/IN
it/PRP
recouped/VBD
some/DT
of/IN
the/DT
sharp/JJ
losses/NNS
staged/VBD
early/JJ
last/JJ
week/NN
on/IN
the/DT
back/NN
of/IN
Wall/NNP
Street/NNP
's/POS
fall/NN
./.
London/NNP
was/VBD
weak/JJ
throughout/IN
Friday/NNP
's/POS
trading/NN
,/,
however/RB
,/,
on/IN
what/WP
dealers/NNS
attributed/VBN
to/TO
generally/RB
thin/JJ
interest/NN
ahead/RB
of/IN
the/DT
weekend/NN
and/CC
this/DT
week/NN
's/VBZ
potentially/RB
important/JJ
U.K./NNP
trade/NN
figures/NNS
for/IN
September/NNP
./.
The/DT
FT-SE/NNP
100/CD
largely/RB
remained/VBD
within/IN
an/DT
11-point/JJ
range/NN
establshed/VBN
within/IN
the/DT
first/JJ
hour/NN
of/IN
trading/NN
before/RB
it/PRP
eased/VBD
to/TO
an/DT
intraday/NN
low/NN
late/RB
in/IN
the/DT
session/NN
when/WRB
a/DT
flurry/NN
of/IN
program/NN
selling/NN
pushed/VBD
Wall/NNP
Street/NNP
lower/RBR
./.
The/DT
FT/NNP
30-share/CD
index/NN
closed/VBD
11.0/CD
points/NNS
lower/RBR
at/IN
1761.0/CD
./.
Volume/NN
was/VBD
extremely/RB
thin/JJ
at/IN
351.3/CD
million/CD
shares/NNS
,/,
the/DT
lightest/JJS
volume/NN
of/IN
the/DT
week/NN
and/CC
modestly/RB
under/RB
Thursday/NNP
's/POS
387.4/CD
million/CD
shares/NNS
./.
Dealers/NNS
said/VBD
the/DT
day/NN
's/POS
action/NN
was/VBD
featureless/JJ
outside/IN
some/DT
response/NN
to/TO
sterling/NN
's/POS
early/JJ
weakness/NN
against/IN
the/DT
mark/NN
,/,
and/CC
fears/NNS
that/IN
Wall/NNP
Street/NNP
might/MD
open/VB
lower/RBR
after/IN
its/PRP$
strong/JJ
leap/NN
forward/RB
Thursday/NNP
./.
They/PRP
added/VBD
that/IN
market-makers/NNS
were/VBD
largely/RB
sidelined/VBN
after/IN
aggressively/RB
supporting/VBG
the/DT
market/NN
Thursday/NNP
in/IN
their/PRP$
quest/NN
to/TO
cover/VB
internal/JJ
shortages/NNS
of/IN
FT-SE/NNP
100/CD
shares/NNS
./.
Interest/NN
may/MD
remain/VB
limited/JJ
into/IN
tomorrow/NN
's/POS
U.K./NNP
trade/NN
figures/NNS
,/,
which/WDT
the/DT
market/NN
will/MD
be/VB
watching/VBG
closely/RB
to/TO
see/VB
if/IN
there/EX
is/VBZ
any/DT
improvement/NN
after/IN
disappointing/JJ
numbers/NNS
in/IN
the/DT
previous/JJ
two/CD
months/NNS
./.
The/DT
key/JJ
corporate/JJ
news/NN
of/IN
the/DT
day/NN
was/VBD
that/IN
British/NNP
Airways/NNP
decided/VBD
to/TO
withdraw/VB
from/IN
a/DT
management-led/JJ
bid/NN
for/IN
UAL/NNP
Corp./NNP
,/,
the/DT
parent/NN
of/IN
United/NNP
Airlines/NNP
./.
British/NNP
Airways/NNP
rose/VBD
initially/RB
after/IN
announcing/VBG
its/PRP$
withdrawal/NN
from/IN
the/DT
UAL/NNP
deal/NN
./.
Dealers/NNS
said/VBD
they/PRP
viewed/VBD
the/DT
initial/JJ
#/#
390-million/CD
$/$
622/CD
million/CD
outlay/NN
for/IN
a/DT
15/CD
%/NN
stake/NN
in/IN
the/DT
airline/NN
as/IN
a/DT
bit/NN
much/JJ
./.
Its/PRP$
shares/NNS
slid/VBD
in/IN
late/JJ
dealings/NNS
to/TO
close/VB
a/DT
penny/NN
per/IN
share/NN
lower/RBR
at/IN
197/CD
pence/NN
./.
The/DT
airline/NN
was/VBD
the/DT
most/RBS
active/JJ
FT-SE/NNP
100/CD
at/IN
8.2/CD
million/CD
shares/NNS
traded/VBN
./.
The/DT
next/JJ
most/RBS
active/JJ
top-tier/JJ
stock/NN
was/VBD
B.A.T/NNP
Industries/NNP
,/,
the/DT
target/NN
of/IN
Sir/NNP
James/NNP
Goldsmith/NNP
's/POS
#/#
13.4/CD
billion/CD
bid/NN
./.
The/DT
company/NN
gained/VBD
shareholder/NN
approval/NN
Thursday/NNP
to/TO
restructure/NN
in/IN
a/DT
bid/NN
to/TO
fend/VB
off/RP
the/DT
hostile/NN
takeover/NN
./.
Sir/NNP
James/NNP
said/VBD
Thursday/NNP
night/NN
that/IN
his/PRP$
plans/NNS
for/IN
the/DT
takeover/NN
had/VBD
n't/RB
changed/VBN
./.
B.A.T/NNP
ended/VBD
the/DT
day/NN
at/IN
778/CD
,/,
down/RB
5/CD
,/,
on/IN
turnover/NN
of/IN
7.5/CD
million/CD
shares/NNS
./.
Dealers/NNS
said/VBD
it/PRP
was/VBD
hit/VBN
by/IN
some/DT
profit-taking/NN
after/IN
gains/NNS
since/IN
mid-week/NN
./.
In/IN
other/JJ
active/JJ
shares/NNS
,/,
Trusthouse/NNP
Forte/NNP
shed/VBD
10/CD
to/TO
294/CD
on/IN
volume/NN
of/IN
6.4/CD
million/CD
shares/NNS
after/IN
a/DT
Barclays/NNP
De/NNP
Zoete/NNP
Wedd/NNP
downgrading/NN
,/,
while/IN
Hillsdown/NNP
Holdings/NNP
,/,
a/DT
food/NN
products/NNS
concern/NN
,/,
was/VBD
boosted/VBN
2/CD
to/TO
271/CD
after/RB
it/PRP
disclosed/VBD
it/PRP
would/MD
seek/VB
shareholder/NN
approval/NN
to/TO
begin/VB
share/NN
repurchases/NNS
./.
Elsewhere/RB
in/IN
Europe/NNP
,/,
share/NN
prices/NNS
closed/VBD
higher/RBR
in/IN
Stockholm/NNP
,/,
Brussels/NNP
and/CC
Milan/NNP
./.
Prices/NNS
were/VBD
lower/JJR
in/IN
Frankfurt/NNP
,/,
Zurich/NNP
,/,
Paris/NNP
and/CC
Amsterdam/NNP
./.
South/JJ
African/JJ
gold/NN
stocks/NNS
closed/VBD
moderately/RB
lower/RBR
./.
Share/NN
prices/NNS
closed/VBD
higher/RBR
in/IN
Sydney/NNP
,/,
Taipei/NNP
,/,
Wellington/NNP
,/,
Manila/NNP
,/,
Hong/NNP
Kong/NNP
and/CC
Singapore/NNP
and/CC
were/VBD
lower/JJR
in/IN
Seoul/NNP
./.
Here/RB
are/VBP
price/NN
trends/NNS
on/IN
the/DT
world/NN
's/POS
major/JJ
stock/NN
markets/NNS
,/,
as/IN
calculated/VBN
by/IN
Morgan/NNP
Stanley/NNP
Capital/NNP
International/NNP
Perspective/NNP
,/,
Geneva/NNP
./.
To/TO
make/VB
them/PRP
directly/RB
comparable/JJ
,/,
each/DT
index/NN
is/VBZ
based/VBN
on/IN
the/DT
close/NN
of/IN
1969/CD
equaling/VBG
100/CD
./.
The/DT
percentage/NN
change/NN
is/VBZ
since/IN
year-end/NN
./.
The/DT
U.S./NNP
is/VBZ
required/VBN
to/TO
notify/VB
foreign/JJ
dictators/NNS
if/IN
it/PRP
knows/VBZ
of/IN
coup/NN
plans/NNS
likely/JJ
to/TO
endanger/VB
their/PRP$
lives/NNS
,/,
government/NN
officials/NNS
said/VBD
./.
The/DT
notification/NN
policy/NN
was/VBD
part/NN
of/IN
a/DT
set/NN
of/IN
guidelines/NNS
on/IN
handling/VBG
coups/NNS
outlined/VBN
in/IN
a/DT
secret/JJ
1988/CD
exchange/NN
of/IN
letters/NNS
between/IN
the/DT
Reagan/NNP
administration/NN
and/CC
the/DT
Senate/NNP
Intelligence/NNP
Committee/NNP
./.
The/DT
existence/NN
of/IN
the/DT
guidelines/NNS
has/VBZ
become/VBN
known/VBN
since/IN
President/NNP
Bush/NNP
disclosed/VBD
them/PRP
privately/RB
to/TO
seven/CD
Republican/NNP
senators/NNS
at/IN
a/DT
White/NNP
House/NNP
meeting/NN
last/JJ
Monday/NNP
./.
Officials/NNS
familiar/JJ
with/IN
the/DT
meeting/NN
said/VBD
Mr./NNP
Bush/NNP
cited/VBD
the/DT
policy/NN
as/IN
an/DT
example/NN
of/IN
the/DT
sort/NN
of/IN
congressional/JJ
requirements/NNS
the/DT
administration/NN
contends/VBZ
contribute/VB
to/TO
the/DT
failure/NN
of/IN
such/JJ
covert/JJ
actions/NNS
as/IN
this/DT
month/NN
's/POS
futile/JJ
effort/NN
to/TO
oust/VB
Panamanian/JJ
dictator/NN
Manuel/NNP
Noriega/NNP
./.
According/VBG
to/TO
the/DT
officials/NNS
,/,
Mr./NNP
Bush/NNP
even/RB
read/VBD
to/TO
the/DT
senators/NNS
selections/NNS
from/IN
a/DT
highly/RB
classified/VBN
letter/NN
from/IN
the/DT
committee/NN
to/TO
the/DT
White/NNP
House/NNP
discussing/VBG
the/DT
guidelines/NNS
./.
They/PRP
said/VBD
the/DT
president/NN
conceded/VBD
the/DT
notification/NN
requirement/NN
did/VBD
n't/RB
affect/VB
his/PRP$
decision/NN
to/TO
lend/VB
only/JJ
minor/JJ
support/NN
to/TO
this/DT
month/NN
's/POS
Panama/NNP
coup/NN
effort/NN
./.
No/DT
notification/NN
was/VBD
ever/RB
considered/VBN
,/,
officials/NNS
said/VBD
,/,
apparently/RB
because/IN
the/DT
U.S./NNP
did/VBD
n't/RB
think/VB
the/DT
coup/NN
plotters/NNS
intended/VBN
to/TO
kill/VB
Mr./NNP
Noriega/NNP
,/,
but/CC
merely/RB
sought/VBD
to/TO
imprison/VB
him/PRP
./.
What/WP
's/VBZ
more/JJR
,/,
both/DT
administration/NN
and/CC
congressional/JJ
officials/NNS
hint/VBP
that/IN
the/DT
notification/NN
requirement/NN
is/VBZ
likely/JJ
to/TO
be/VB
dropped/VBN
from/IN
the/DT
guidelines/NNS
on/IN
coup/NN
attempts/NNS
that/WDT
are/VBP
being/VBG
rewritten/VBN
by/IN
the/DT
panel/NN
and/CC
the/DT
White/NNP
House/NNP
./.
The/DT
rewriting/VBG
was/VBD
launched/VBN
at/IN
a/DT
meeting/NN
between/IN
Mr./NNP
Bush/NNP
and/CC
intelligence/NN
committee/NN
leaders/NNS
Oct./NNP
12/CD
,/,
a/DT
few/JJ
days/NNS
before/IN
the/DT
meeting/NN
at/IN
which/WDT
the/DT
president/NN
complained/VBD
about/IN
the/DT
rules/NNS
./.
However/RB
,/,
the/DT
disclosure/NN
of/IN
the/DT
guidelines/NNS
,/,
first/RB
reported/VBN
last/JJ
night/NN
by/IN
NBC/NNP
News/NNP
,/,
is/VBZ
already/RB
being/VBG
interpreted/VBN
on/IN
Capitol/NNP
Hill/NNP
as/IN
an/DT
unfair/JJ
effort/NN
to/TO
pressure/VB
Congress/NNP
./.
It/PRP
has/VBZ
reopened/VBN
the/DT
bitter/JJ
wrangling/VBG
between/IN
the/DT
White/NNP
House/NNP
and/CC
Congress/NNP
over/IN
who/WP
is/VBZ
responsible/JJ
for/IN
the/DT
failure/NN
to/TO
oust/VB
Mr./NNP
Noriega/NNP
and/CC
,/,
more/RBR
broadly/RB
,/,
for/IN
difficulties/NNS
in/IN
carrying/VBG
out/RP
covert/JJ
activities/NNS
abroad/RB
./.
A/DT
statement/NN
issued/VBN
by/IN
the/DT
office/NN
of/IN
the/DT
committee/NN
chairman/NN
,/,
Sen./NNP
David/NNP
Boren/NNP
D./NNP
,/,
Okla./NNP
the/DT
disclosure/NN
is/VBZ
part/NN
of/IN
a/DT
continuing/VBG
effort/NN
to/TO
shift/VB
the/DT
criticism/NN
for/IN
the/DT
failure/NN
of/IN
the/DT
recent/JJ
coup/NN
attempt/NN
in/IN
Panama/NNP
./.
The/DT
statement/NN
added/VBD
,/,
``/``
Someone/NN
has/VBZ
regrettably/RB
chosen/VBN
to/TO
selectively/RB
summarize/VB
portions/NNS
of/IN
highly/RB
classified/VBN
correspondence/NN
between/IN
the/DT
two/CD
branches/NNS
of/IN
government/NN
./.
Not/RB
only/RB
does/VBZ
this/DT
come/VB
close/RB
to/TO
a/DT
violation/NN
of/IN
law/NN
,/,
it/PRP
violates/VBZ
the/DT
trust/NN
we/PRP
have/VBP
all/DT
worked/VBD
to/TO
develop/VB
./.
''/''
Sen./NNP
Boren/NNP
said/VBD
,/,
``/``
It/PRP
's/VBZ
time/NN
to/TO
stop/VB
bickering/VBG
and/CC
work/NN
together/RB
to/TO
develop/VB
a/DT
clear/JJ
and/CC
appropriate/JJ
policy/NN
to/TO
help/VB
the/DT
country/NN
in/IN
the/DT
future/NN
./.
I/PRP
've/VBP
invited/VBN
the/DT
president/NN
to/TO
send/VB
his/PRP$
suggestions/NNS
to/TO
the/DT
committee/NN
./.
''/''
Republican/NNP
Sen./NNP
William/NNP
Cohen/NNP
of/IN
Maine/NNP
,/,
the/DT
panel/NN
's/POS
vice/NN
chairman/NN
,/,
said/VBD
of/IN
the/DT
disclosure/NN
that/IN
``/``
a/DT
text/NN
torn/VBN
out/RB
of/IN
context/NN
is/VBZ
a/DT
pretext/NN
,/,
and/CC
it/PRP
is/VBZ
unfair/JJ
for/IN
those/DT
in/IN
the/DT
White/NNP
House/NNP
who/WP
are/VBP
leaking/VBG
to/TO
present/VB
the/DT
evidence/NN
in/IN
a/DT
selective/JJ
fashion/NN
./.
''/''
Sen./NNP
Boren/NNP
said/VBD
the/DT
committee/NN
could/MD
n't/RB
defend/VB
itself/PRP
by/IN
making/VBG
the/DT
documents/NNS
public/JJ
because/IN
that/DT
would/MD
violate/VB
classification/NN
rules/NNS
./.
But/CC
the/DT
chairman/NN
and/CC
other/JJ
committee/NN
members/NNS
stressed/VBD
that/IN
the/DT
notification/NN
guideline/NN
was/VBD
n't/RB
imposed/VBN
on/IN
the/DT
White/NNP
House/NNP
by/IN
a/DT
meddling/VBG
Congress/NNP
./.
Instead/RB
,/,
both/DT
congressional/JJ
and/CC
administration/NN
officials/NNS
agreed/VBD
,/,
it/PRP
grew/VBD
out/IN
of/IN
talks/NNS
about/IN
coup-planning/NN
in/IN
Panama/NNP
that/WDT
were/VBD
initiated/VBN
by/IN
the/DT
administration/NN
in/IN
July/NNP
1988/CD
and/CC
stretched/VBD
into/IN
last/JJ
October/NNP
./.
The/DT
guideline/NN
was/VBD
n't/RB
a/DT
law/NN
,/,
but/CC
a/DT
joint/JJ
interpretation/NN
of/IN
how/WRB
the/DT
U.S./NNP
might/MD
operate/VB
during/IN
foreign/JJ
coups/NNS
in/IN
light/NN
of/IN
the/DT
longstanding/JJ
presidential/JJ
order/NN
banning/VBG
a/DT
U.S./NNP
role/NN
in/IN
assassinations/NNS
./.
In/IN
fact/NN
,/,
yesterday/NN
the/DT
administration/NN
and/CC
Congress/NNP
were/VBD
still/RB
differing/VBG
on/IN
what/WP
had/VBD
been/VBN
agreed/VBN
to/TO
./.
One/CD
administration/NN
official/NN
said/VBD
notification/NN
was/VBD
required/VBN
even/RB
if/IN
the/DT
U.S./NNP
``/``
gets/VBZ
wind/NN
''/''
of/IN
somebody/NN
else/RB
's/POS
coup/NN
plans/NNS
that/WDT
seem/VBP
likely/RB
to/TO
endanger/VB
a/DT
dictator/NN
's/POS
life/NN
./.
But/CC
a/DT
congressional/JJ
source/NN
close/RB
to/TO
the/DT
panel/NN
said/VBD
the/DT
rule/NN
only/RB
covered/VBD
coup/NN
plans/NNS
directly/RB
involving/VBG
the/DT
U.S/NNP
./.
Although/IN
the/DT
notification/NN
guideline/NN
was/VBD
n't/RB
carried/VBD
out/RP
in/IN
this/DT
month/NN
's/POS
coup/NN
attempt/NN
,/,
some/DT
administration/NN
officials/NNS
argue/VBP
that/IN
it/PRP
may/MD
have/VB
led/VBN
to/TO
hesitation/NN
and/CC
uncertainty/NN
on/IN
the/DT
part/NN
of/IN
U.S./NNP
intelligence/NN
and/CC
military/JJ
operatives/NNS
in/IN
Panama/NNP
./.
One/CD
senior/JJ
administration/NN
official/NN
called/VBD
the/DT
guideline/NN
``/``
outrageous/JJ
''/''
and/CC
said/VBD
it/PRP
could/MD
make/VB
U.S./NNP
operatives/NNS
reluctant/JJ
to/TO
even/RB
listen/VB
to/TO
coup/NN
plans/NNS
for/IN
fear/NN
they/PRP
may/MD
get/VB
into/IN
legal/JJ
trouble/NN
./.
The/DT
issue/NN
came/VBD
to/TO
a/DT
head/NN
last/JJ
year/NN
,/,
officials/NNS
recalled/VBD
,/,
partly/RB
because/IN
the/DT
Reagan/NNP
administration/NN
had/VBD
sought/VBN
unsuccessfully/RB
to/TO
win/VB
committee/NN
approval/NN
of/IN
funding/NN
for/IN
new/JJ
Panama/NNP
coup/NN
efforts/NNS
./.
In/IN
addition/NN
,/,
both/DT
administration/NN
and/CC
congressional/JJ
officials/NNS
said/VBD
the/DT
need/NN
for/IN
guidelines/NNS
on/IN
coups/NNS
and/CC
assassinations/NNS
was/VBD
partly/RB
spurred/VBN
by/IN
a/DT
White/NNP
House/NNP
desire/NN
to/TO
avoid/VB
nasty/JJ
overseas/JJ
surprises/NNS
during/IN
the/DT
election/NN
campaign/NN
./.
Though/IN
the/DT
assassination/NN
ban/NN
is/VBZ
a/DT
White/NNP
House/NNP
order/NN
that/IN
Congress/NNP
never/RB
voted/VBD
on/IN
,/,
the/DT
intelligence/NN
committees/NNS
can/MD
exercise/VB
influence/NN
over/IN
its/PRP$
interpretation/NN
./.
Last/JJ
week/NN
,/,
Central/NNP
Intelligence/NNP
Agency/NNP
Director/NNP
William/NNP
Webster/NNP
publicly/RB
called/VBD
on/IN
Congress/NNP
to/TO
provide/VB
new/JJ
interpretations/NNS
of/IN
the/DT
assassination/NN
order/NN
that/WDT
would/MD
permit/VB
the/DT
U.S./NNP
more/JJR
freedom/NN
to/TO
act/VB
in/IN
coups/NNS
./.
The/DT
administration/NN
has/VBZ
reacted/VBN
to/TO
criticism/NN
that/IN
it/PRP
mishandled/VBD
the/DT
latest/JJS
coup/NN
attempt/NN
by/IN
seeking/VBG
to/TO
blame/VB
Congress/NNP
for/IN
restrictions/NNS
the/DT
White/NNP
House/NNP
said/VBD
have/VBP
hampered/VBN
its/PRP$
freedom/NN
of/IN
action/NN
./.
However/RB
,/,
last/JJ
week/NN
Mr./NNP
Webster/NNP
's/POS
two/CD
top/JJ
CIA/NNP
deputies/NNS
said/VBD
congressional/JJ
curbs/NNS
had/VBD
n't/RB
hampered/VBN
the/DT
spy/NN
agency/NN
's/POS
role/NN
in/IN
the/DT
coup/NN
attempt/NN
in/IN
Panama/NNP
./.
Nevertheless/RB
,/,
the/DT
administration/NN
's/POS
criticisms/NNS
appeared/VBD
to/TO
have/VB
made/VBN
some/DT
headway/NN
with/IN
Sens./NNS
Boren/NNP
and/CC
Cohen/NNP
after/IN
their/PRP$
Oct./NNP
12/CD
meeting/NN
with/IN
the/DT
president/NN
./.
The/DT
three/CD
men/NNS
agreed/VBD
to/TO
rewrite/VB
the/DT
guidelines/NNS
,/,
without/IN
changing/VBG
the/DT
basic/JJ
assassination/NN
ban/NN
,/,
to/TO
clear/VB
up/RP
any/DT
ambiguities/NNS
that/WDT
may/MD
have/VB
hampered/VBN
U.S./NNP
encouragement/NN
of/IN
coups/NNS
against/IN
anti-American/JJ
leaders/NNS
./.
The/DT
new/JJ
argument/NN
over/IN
the/DT
notification/NN
guideline/NN
,/,
however/RB
,/,
could/MD
sour/VB
any/DT
atmosphere/NN
of/IN
cooperation/NN
that/IN
existed/VBD
./.
Gerald/NNP
F./NNP
Seib/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
its/PRP$
centennial/JJ
year/NN
,/,
The/DT
Wall/NNP
Street/NNP
Journal/NNP
will/MD
report/VB
events/NNS
of/IN
the/DT
past/JJ
century/NN
that/WDT
stand/VBP
as/IN
milestones/NNS
of/IN
American/JJ
business/NN
history/NN
./.
MUTUAL/JJ
FUNDS/NNS
ARRIVED/VBD
IN/IN
THE/DT
U.S./NNP
during/IN
the/DT
Roaring/NNP
Twenties/NNP
they/PRP
had/VBD
been/VBN
in/IN
Britain/NNP
for/IN
a/DT
century/NN
they/PRP
did/VBD
n't/RB
boom/VB
until/IN
the/DT
money/NN
market/NN
fund/NN
was/VBD
created/VBN
in/IN
the/DT
1970s/CD
./.
By/IN
1980/CD
,/,
there/EX
were/VBD
more/JJR
than/IN
100/CD
such/JJ
funds/NNS
./.
Besides/IN
creating/VBG
a/DT
vehicle/NN
for/IN
investors/NNS
,/,
money/NN
market/NN
funds/NNS
also/RB
helped/VBD
rewrite/VB
banking/NN
regulations/NNS
./.
The/DT
idea/NN
was/VBD
to/TO
let/VB
small/JJ
investors/NNS
,/,
the/DT
backbone/NN
of/IN
the/DT
fund/NN
business/NN
,/,
deal/VB
in/IN
the/DT
money/NN
market/NN
's/POS
high/JJ
short-term/JJ
interest/NN
rates/NNS
./.
This/DT
had/VBD
been/VBN
the/DT
exclusive/JJ
province/NN
of/IN
those/DT
rich/JJ
enough/RB
to/TO
use/VB
six-figure/JJ
sums/NNS
to/TO
get/VB
income/NN
that/WDT
was/VBD
figured/VBN
beyond/IN
the/DT
third/JJ
or/CC
fourth/JJ
decimal/NN
place/NN
./.
The/DT
now-standard/JJ
price/NN
of/IN
$/$
1/CD
a/DT
share/NN
came/VBD
about/RP
by/IN
accident/NN
./.
An/DT
early/JJ
fund/NN
had/VBD
filed/VBN
a/DT
registration/NN
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
that/WDT
included/VBD
a/DT
fixed/VBN
$/$
1/CD
price/NN
./.
It/PRP
arrived/VBD
just/RB
as/IN
the/DT
regulator/NN
handling/VBG
such/JJ
operations/NNS
was/VBD
retiring/VBG
./.
His/PRP$
successor/NN
approved/VBD
the/DT
$/$
1/CD
price/NN
in/IN
the/DT
process/NN
of/IN
clearing/VBG
the/DT
backed-up/JJ
papers/NNS
on/IN
his/PRP$
desk/NN
./.
When/WRB
Dreyfus/NNP
started/VBD
the/DT
first/JJ
advertising-backed/JJ
retail/JJ
fund/NN
in/IN
February/NNP
1974/CD
,/,
it/PRP
was/VBD
priced/VBN
at/IN
$/$
10/CD
a/DT
share/NN
$/$
1/CD
billion/CD
in/IN
assets/NNS
in/IN
one/CD
year/NN
./.
Dreyfus/NNP
moved/VBD
to/TO
the/DT
$/$
1/CD
price/NN
after/IN
the/DT
SEC/NNP
set/NN
standards/NNS
--/:
an/DT
average/JJ
120-day/JJ
maturity/NN
of/IN
high-grade/JJ
paper/NN
--/:
that/WDT
are/VBP
still/RB
the/DT
rule/NN
./.
Keeping/VBG
the/DT
listed/VBN
price/NN
at/IN
a/DT
dollar/NN
is/VBZ
primarily/RB
a/DT
convenience/NN
./.
Actually/RB
,/,
the/DT
funds/NNS
do/VBP
fluctuate/VB
,/,
but/CC
beyond/IN
the/DT
third/JJ
decimal/NN
place/NN
./.
Rounding-off/NN
keeps/VBZ
them/PRP
at/IN
$/$
1/CD
./.
Eventually/RB
,/,
the/DT
money/NN
funds/NNS
'/POS
success/NN
forced/VBD
relaxation/NN
of/IN
curbs/NNS
on/IN
bank/NN
interest/NN
rates/NNS
to/TO
allow/VB
banks/NNS
to/TO
offer/VB
competing/VBG
yields/NNS
./.
The/DT
new/JJ
instrument/NN
also/RB
introduced/VBD
many/JJ
to/TO
the/DT
industry/NN
--/:
30/CD
%/NN
of/IN
fund/NN
owners/NNS
there/EX
are/VBP
more/JJR
than/IN
54/CD
million/CD
accounts/NNS
a/DT
money/NN
fund/NN
./.
Today/NN
more/JJR
than/IN
470/CD
money/NN
market/NN
funds/NNS
have/VBP
total/JJ
assets/NNS
exceeding/VBG
$/$
350/CD
billion/CD
./.
The/DT
companion/NN
tax-exempt/JJ
funds/NNS
add/VBP
$/$
71/CD
billion/CD
./.
Dreyfus/NNP
alone/RB
has/VBZ
seen/VBN
its/PRP$
money/NN
market/NN
funds/NNS
grow/VBP
from/IN
$/$
1/CD
billion/CD
in/IN
1975/CD
to/TO
closes/NNS
to/TO
$/$
15/CD
billion/CD
today/NN
./.
Procter/NNP
&/CC
Gamble/NNP
Co./NNP
and/CC
Noxell/NNP
Corp./NNP
said/VBD
they/PRP
received/VBD
early/JJ
termination/NN
of/IN
the/DT
waiting/NN
period/NN
under/IN
the/DT
Hart-Scott-Rodino/NNP
Act/NNP
regarding/VBG
the/DT
proposed/VBN
$/$
1.4/CD
billion/CD
merger/NN
of/IN
Noxell/NNP
into/IN
P&G/NNP
./.
Shareholders/NNS
of/IN
Noxell/NNP
,/,
of/IN
Hunt/NNP
Valley/NNP
,/,
Md./NNP
,/,
will/MD
vote/VB
on/IN
the/DT
merger/NN
at/IN
a/DT
special/JJ
meeting/NN
on/IN
Nov./NNP
30/CD
,/,
the/DT
companies/NNS
said/VBD
./.
P&G/NNP
,/,
Cincinnati/NNP
,/,
agreed/VBD
to/TO
exchange/VB
0.272/CD
share/NN
of/IN
its/PRP$
common/JJ
stock/NN
for/IN
each/DT
share/NN
of/IN
Noxell/NNP
common/JJ
and/CC
Class/NNP
B/NNP
stock/NN
,/,
a/DT
total/NN
of/IN
about/RB
11/CD
million/CD
P&G/NNP
shares/NNS
./.
The/DT
transaction/NN
would/MD
mark/VB
the/DT
entry/NN
of/IN
P&G/NNP
into/IN
cosmetics/NNS
./.
The/DT
company/NN
already/RB
markets/VBZ
a/DT
wide/JJ
range/NN
of/IN
detergents/NNS
,/,
food/NN
,/,
household/NN
and/CC
health-care/NN
products/NNS
./.
Shareholders/NNS
of/IN
Messerschmitt-Boelkow-Blohm/NNP
G.m.b/NNP
./.
H./NNP
postponed/VBD
their/PRP$
formal/JJ
endorsement/NN
of/IN
a/DT
merger/NN
with/IN
Daimler-Benz/NNP
AG/NNP
until/IN
another/DT
meeting/NN
on/IN
Nov./NNP
17/CD
./.
The/DT
owners/NNS
of/IN
the/DT
defense/NN
and/CC
aerospace/NN
concern/NN
,/,
which/WDT
include/VBP
three/CD
regional/JJ
states/NNS
,/,
several/JJ
industrial/JJ
companies/NNS
and/CC
banks/NNS
,/,
met/VBD
Friday/NNP
to/TO
discuss/VB
the/DT
final/JJ
terms/NNS
of/IN
the/DT
transaction/NN
,/,
in/IN
which/WDT
Daimler-Benz/NNP
will/MD
acquire/VB
50.01/CD
%/NN
of/IN
But/CC
agreement/NN
aparently/RB
could/MD
n't/RB
be/VB
reached/VBN
because/RB
of/IN
opposition/NN
from/IN
the/DT
states/NNS
of/IN
Hamburg/NNP
and/CC
Bremen/NNP
,/,
which/WDT
are/VBP
demanding/VBG
more/JJR
influence/NN
over/IN
the/DT
German/NNP
Airbus/NNP
operations/NNS
and/CC
a/DT
better/JJR
guarantee/NN
against/IN
job/NN
losses/NNS
in/IN
the/DT
troubled/JJ
Northern/JJ
German/JJ
region/NN
./.
The/DT
two/CD
states/NNS
and/CC
the/DT
state/NN
of/IN
Bavaria/NNP
still/RB
hold/VBP
a/DT
majority/NN
in/IN
MBB/NNP
,/,
but/CC
their/PRP$
stake/NN
will/MD
fall/VB
to/TO
around/RB
30/CD
%/NN
after/IN
Daimler-Benz/NNP
acquires/VBZ
its/PRP$
stake/NN
in/IN
the/DT
concern/NN
./.
Jeffrey/NNP
E./NNP
Levin/NNP
was/VBD
named/VBN
vice/NN
president/NN
and/CC
chief/JJ
economist/NN
of/IN
this/DT
commodity/NN
futures/NNS
and/CC
options/NNS
exchange/NN
./.
He/PRP
had/VBD
been/VBN
associate/JJ
professor/NN
in/IN
the/DT
department/NN
of/IN
finance/NN
at/IN
Seton/NNP
Hall/NNP
University/NNP
./.
SIERRA/NNP
TUCSON/NNP
Cos./NNP
said/VBD
it/PRP
completed/VBD
its/PRP$
initial/JJ
public/NN
offering/NN
of/IN
2.5/CD
million/CD
common/JJ
shares/NNS
,/,
which/WDT
raised/VBD
$/$
30/CD
million/CD
./.
The/DT
Tucson/NNP
,/,
Ariz./NNP
,/,
operator/NN
of/IN
addiction-treatment/JJ
centers/NNS
said/VBD
proceeds/NNS
will/MD
be/VB
used/VBN
for/IN
expansion/NN
,/,
to/TO
pay/VB
debt/NN
and/CC
for/IN
general/JJ
corporate/JJ
purposes/NNS
./.
Oppenheimer/NNP
&/CC
Co./NNP
was/VBD
the/DT
lead/JJ
underwriter/NN
./.
The/DT
government/NN
issues/VBZ
its/PRP$
first/JJ
reading/NN
on/IN
third-quarter/JJ
real/JJ
gross/JJ
national/JJ
product/NN
this/DT
week/NN
in/IN
a/DT
report/NN
that/WDT
is/VBZ
expected/VBN
to/TO
disclose/VB
much/RB
tamer/JJR
inflation/NN
./.
The/DT
consensus/NN
view/NN
on/IN
real/JJ
GNP/NNP
,/,
the/DT
total/JJ
value/NN
of/IN
the/DT
nation/NN
's/POS
output/NN
of/IN
goods/NNS
and/CC
services/NNS
adjusted/VBN
for/IN
inflation/NN
,/,
calls/VBZ
for/IN
a/DT
2.3/CD
%/NN
gain/NN
,/,
down/RB
from/IN
the/DT
second/JJ
quarter/NN
's/POS
2.5/CD
%/NN
,/,
according/VBG
to/TO
MMS/NNP
International/NNP
,/,
a/DT
unit/NN
of/IN
McGraw-Hill/NNP
Inc./NNP
,/,
New/NNP
York/NNP
./.
But/CC
inflation/NN
,/,
as/IN
measured/VBN
by/IN
the/DT
GNP/NNP
deflator/NN
in/IN
Thursday/NNP
's/POS
report/NN
,/,
is/VBZ
expected/VBN
to/TO
rise/VB
only/RB
3.5/CD
%/NN
,/,
down/RB
from/IN
4.6/CD
%/NN
in/IN
the/DT
second/JJ
quarter/NN
./.
``/``
Inflation/NN
could/MD
be/VB
a/DT
real/JJ
surprise/NN
,/,
''/''
said/VBD
Samuel/NNP
D./NNP
Kahan/NNP
,/,
chief/JJ
financial/JJ
economist/NN
at/IN
Kleinwort/NNP
Benson/NNP
Government/NNP
Securities/NNP
Inc./NNP
,/,
in/IN
Chicago/NNP
./.
``/``
If/IN
that/DT
gets/VBZ
people/NNS
excited/JJ
,/,
it/PRP
could/MD
serve/VB
as/IN
an/DT
impetus/NN
to/TO
the/DT
fixed-income/NN
markets/NNS
to/TO
lower/VB
their/PRP$
rates/NNS
,/,
''/''
he/PRP
added/VBD
./.
The/DT
week/NN
's/POS
other/JJ
notable/JJ
indicators/NNS
include/VBP
mid-October/JJ
auto/NN
sales/NNS
,/,
September/NNP
durable/JJ
goods/NNS
orders/NNS
as/RB
well/RB
as/IN
September/NNP
personal/JJ
income/NN
,/,
personal/JJ
consumption/NN
and/CC
the/DT
saving/NN
rate/NN
./.
Most/JJS
are/VBP
expected/VBN
to/TO
fall/VB
below/IN
previous-month/JJ
levels/NNS
./.
Many/JJ
economists/NNS
see/VBP
even/RB
slower/JJR
GNP/NNP
growth/NN
for/IN
the/DT
remainder/NN
of/IN
the/DT
year/NN
,/,
with/IN
some/DT
leaning/VBG
more/RBR
strongly/RB
toward/IN
a/DT
possible/JJ
recession/NN
./.
In/IN
addition/NN
to/TO
softer/JJR
production/NN
data/NNS
,/,
weaker/JJR
housing/NN
starts/NNS
and/CC
lower/JJR
corporate/JJ
profits/NNS
currently/RB
in/IN
evidence/NN
,/,
some/DT
analysts/NNS
believe/VBP
the/DT
two/CD
recent/JJ
natural/NN
disasters/NNS
--/:
Hurricane/NNP
Hugo/NNP
and/CC
the/DT
San/NNP
Francisco/NNP
earthquake/NN
--/:
will/MD
carry/VB
economic/JJ
ramifications/NNS
in/IN
the/DT
fourth/JJ
quarter/NN
./.
The/DT
recent/JJ
one-day/JJ
,/,
190-point/JJ
drop/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
seems/VBZ
to/TO
be/VB
significant/JJ
to/TO
economists/NNS
mainly/RB
for/IN
its/PRP$
tacit/JJ
comment/NN
on/IN
the/DT
poor/JJ
quality/NN
of/IN
third-quarter/JJ
profits/NNS
now/RB
being/VBG
reported/VBN
./.
``/``
The/DT
stock/NN
market/NN
is/VBZ
sick/JJ
because/IN
profits/NNS
are/VBP
crumbling/VBG
,/,
''/''
says/VBZ
Michael/NNP
K./NNP
Evans/NNP
,/,
president/NN
of/IN
Evans/NNP
Economics/NNP
Inc./NNP
,/,
Washington/NNP
./.
The/DT
economy/NN
,/,
he/PRP
noted/VBD
,/,
moves/VBZ
the/DT
market/NN
,/,
not/RB
vice/RB
versa/RB
./.
On/IN
the/DT
other/JJ
hand/NN
,/,
Mr./NNP
Evans/NNP
expects/VBZ
the/DT
hurricane/NN
and/CC
the/DT
earthquake/NN
``/``
to/TO
take/VB
a/DT
hunk/NN
out/IN
of/IN
fourth-quarter/JJ
GNP/NNP
./.
''/''
His/PRP$
estimate/NN
of/IN
3.3/CD
%/NN
for/IN
third-quarter/JJ
GNP/NNP
is/VBZ
higher/JJR
than/IN
the/DT
consensus/NN
largely/RB
because/IN
he/PRP
believes/VBZ
current/JJ
inventories/NNS
are/VBP
n't/RB
as/RB
low/JJ
as/IN
official/JJ
figures/NNS
indicate/VBP
./.
Demand/NN
,/,
he/PRP
believes/VBZ
,/,
is/VBZ
being/VBG
met/VBN
from/IN
overhang/NN
rather/RB
than/IN
new/JJ
production/NN
./.
By/IN
and/CC
large/JJ
,/,
economists/NNS
believe/VBP
the/DT
two/CD
natural/JJ
catastrophes/NNS
will/MD
limit/VB
economic/JJ
damage/NN
to/TO
their/PRP$
regions/NNS
./.
Edward/NNP
J./NNP
Campbell/NNP
,/,
economist/NN
at/IN
Brown/NNP
Brothers/NNP
Harriman/NNP
&/CC
Co./NNP
,/,
New/NNP
York/NNP
,/,
noted/VBD
that/IN
large/JJ
increases/NNS
in/IN
construction/NN
activity/NN
along/IN
with/IN
government/NN
and/CC
private/JJ
relief/NN
efforts/NNS
could/MD
offset/VB
loss/NN
of/IN
production/NN
in/IN
those/DT
areas/NNS
./.
Gary/NNP
Ciminero/NNP
,/,
economist/NN
at/IN
Fleet\/Norstar/NNP
Financial/NNP
Group/NNP
,/,
Providence/NNP
,/,
R.I./NNP
,/,
expects/VBZ
the/DT
deflator/NN
to/TO
rise/VB
3.7/CD
%/NN
,/,
well/RB
below/IN
the/DT
second/JJ
quarter/NN
's/POS
4.6/CD
%/NN
,/,
partly/RB
because/IN
of/IN
what/WP
he/PRP
believes/VBZ
will/MD
be/VB
temporarily/RB
better/JJR
price/NN
behavior/NN
./.
He/PRP
expects/VBZ
real/JJ
GNP/NNP
growth/NN
of/IN
only/JJ
2.1/CD
%/NN
for/IN
the/DT
quarter/NN
,/,
noting/VBG
a/DT
wider/JJR
trade/NN
deficit/NN
,/,
slower/JJR
capital/NN
and/CC
government/NN
spending/NN
and/CC
the/DT
lower/JJR
inventory/NN
figures/NNS
./.
Sung/NNP
Won/NNP
Sohn/NNP
,/,
chief/JJ
economist/NN
at/IN
Norwest/NNP
Corp./NNP
,/,
Minneapolis/NNP
,/,
holds/VBZ
that/IN
the/DT
recent/JJ
stock-market/NN
volatility/NN
``/``
increases/VBZ
the/DT
possibility/NN
of/IN
economic/JJ
recession/NN
and/CC
reinforces/VBZ
the/DT
bad/JJ
news/NN
''/''
from/IN
recent/JJ
trade/NN
deficit/NN
,/,
employment/NN
and/CC
housing/NN
reports/NNS
./.
The/DT
consensus/NN
calls/VBZ
for/IN
a/DT
0.5/CD
%/NN
increase/NN
in/IN
September/NNP
personal/JJ
income/NN
and/CC
a/DT
0.3/CD
%/NN
gain/NN
in/IN
consumption/NN
./.
In/IN
August/NNP
,/,
personal/JJ
income/NN
rose/VBD
0.4/CD
%/NN
and/CC
personal/JJ
consumption/NN
increased/VBD
0.9/CD
%/NN
./.
Charles/NNP
Lieberman/NNP
,/,
managing/VBG
director/NN
of/IN
financial/JJ
markets/NNS
reasearch/NN
at/IN
Manufacturers/NNP
Hanover/NNP
Securities/NNP
Corp./NNP
,/,
New/NNP
York/NNP
,/,
said/VBD
Hurrican/NNP
Hugo/NNP
shaved/VBD
0.1/CD
%/NN
to/TO
0.2/CD
%/NN
from/IN
personal-income/JJ
growth/VB
,/,
because/IN
of/IN
greatly/RB
diminished/VBN
rental/JJ
income/NN
from/IN
tourism/NN
./.
Durable/JJ
goods/NNS
orders/NNS
for/IN
September/NNP
,/,
due/JJ
out/RP
tomorrow/NN
,/,
are/VBP
expected/VBN
to/TO
show/VB
a/DT
slip/NN
of/IN
1/CD
%/NN
,/,
compared/VBN
with/IN
August/NNP
's/POS
3.9/CD
%/NN
increase/NN
./.
As/IN
usual/JJ
,/,
estimates/NNS
on/IN
the/DT
fickle/JJ
report/NN
are/VBP
wide/JJ
,/,
running/VBG
from/IN
a/DT
drop/NN
of/IN
3.5/CD
%/NN
to/TO
a/DT
gain/NN
of/IN
1.6/CD
%/NN
./.
HASTINGS/NNP
MANUFACTURING/NNP
Co./NNP
declared/VBD
a/DT
regular/JJ
quarterly/JJ
dividend/NN
of/IN
10/CD
cents/NNS
a/DT
share/NN
and/CC
an/DT
extra/JJ
dividend/NN
of/IN
five/CD
cents/NNS
a/DT
share/NN
on/IN
its/PRP$
common/JJ
stock/NN
,/,
payable/JJ
Dec./NNP
15/CD
to/TO
shares/NNS
of/IN
record/NN
Nov./NNP
17/CD
./.
This/DT
is/VBZ
the/DT
11th/JJ
consecutive/JJ
quarter/NN
in/IN
which/WDT
the/DT
company/NN
has/VBZ
paid/VBN
shareholders/NNS
an/DT
extra/JJ
dividend/NN
of/IN
five/CD
cents/NNS
./.
The/DT
Hastings/NNP
,/,
Mich./NNP
,/,
concern/NN
makes/VBZ
piston/NN
rings/NNS
,/,
filters/NNS
and/CC
fuel/NN
pumps/NNS
./.
Vickers/NNP
PLC/NNP
,/,
a/DT
United/NNP
Kingdom/NNP
defense/NN
and/CC
engineering/NN
company/NN
,/,
said/VBD
an/DT
investment/NN
unit/NN
controlled/VBN
by/IN
New/NNP
Zealand/NNP
financier/NN
Ron/NNP
Brierley/NNP
raised/VBD
its/PRP$
stake/NN
in/IN
the/DT
company/NN
Friday/NNP
to/TO
15.02/CD
%/NN
from/IN
about/RB
14.6/CD
%/NN
Thursday/NNP
and/CC
from/IN
13.7/CD
%/NN
the/DT
previous/JJ
week/NN
./.
I.E.P./NNP
Securities/NNP
Ltd./NNP
,/,
a/DT
unit/NN
of/IN
Mr./NNP
Brierley/NNP
's/POS
Hong/NNP
Kong-based/JJ
Industrial/NNP
Equity/NNP
Pacific/NNP
Ltd./NNP
,/,
boosted/VBD
its/PRP$
holdings/NNS
in/IN
Vickers/NNP
to/TO
38.8/CD
million/CD
shares/NNS
./.
The/DT
latest/JJS
purchase/NN
follows/VBZ
small/JJ
increases/NNS
in/IN
his/PRP$
holdings/NNS
made/VBN
over/IN
the/DT
past/JJ
five/CD
months/NNS
./.
In/IN
May/NNP
,/,
Mr./NNP
Brierley/NNP
's/POS
stake/NN
shrank/VBD
to/TO
8.7/CD
%/NN
after/IN
ranging/VBG
between/IN
9/CD
%/NN
and/CC
11/CD
%/NN
for/IN
much/JJ
of/IN
the/DT
previous/JJ
year/NN
./.
``/``
Ron/NNP
Brierley/NNP
clearly/RB
views/VBZ
our/PRP$
company/NN
as/IN
a/DT
good/JJ
investment/NN
,/,
''/''
a/DT
Vickers/NNP
spokesman/NN
said/VBD
./.
The/DT
spokesman/NN
refused/VBD
to/TO
comment/VB
on/IN
speculation/NN
that/IN
Industrial/NNP
Equity/NNP
might/MD
use/VB
its/PRP$
interest/NN
as/IN
a/DT
platform/NN
to/TO
launch/VB
a/DT
hostile/JJ
bid/NN
for/IN
the/DT
company/NN
./.
Vickers/NNP
makes/VBZ
tanks/NNS
for/IN
the/DT
U.K./NNP
army/NN
,/,
Rolls/NNP
Royce/NNP
cars/NNS
,/,
and/CC
has/VBZ
marine/JJ
and/CC
medical/JJ
businesses/NNS
./.
When/WRB
Rune/NNP
Andersson/NNP
set/VBD
out/RP
to/TO
revive/VB
flagging/JJ
Swedish/JJ
conglomerate/NN
Trelleborg/NNP
AB/NNP
in/IN
the/DT
early/JJ
1980s/CD
,/,
he/PRP
spurned/VBD
the/DT
advice/NN
of/IN
trendy/JJ
management/NN
consultants/NNS
./.
``/``
All/DT
these/DT
consultants/NNS
kept/VBD
coming/VBG
around/RP
telling/VBG
us/PRP
we/PRP
should/MD
concentrate/VB
on/IN
high/JJ
technology/NN
,/,
electronics/NNS
or/CC
biotechnology/NN
,/,
and/CC
get/VB
out/IN
of/IN
mature/JJ
basic/JJ
industries/NNS
,/,
''/''
Mr./NNP
Andersson/NNP
recalls/VBZ
./.
Yet/RB
under/IN
its/PRP$
45-year-old/JJ
president/NN
,/,
Trelleborg/NNP
moved/VBD
aggressively/RB
into/IN
those/DT
unfashionable/JJ
base/NN
industries/NNS
--/:
first/RB
strengthening/VBG
its/PRP$
existing/VBG
rubber/NN
and/CC
plastics/NNS
division/NN
,/,
later/RB
adding/VBG
mining/NN
as/RB
well/RB
as/IN
building/NN
and/CC
construction/NN
materials/NNS
./.
It/PRP
was/VBD
a/DT
gutsy/JJ
move/NN
for/IN
a/DT
little-known/JJ
executive/NN
,/,
fired/VBN
after/IN
only/RB
two/CD
months/NNS
as/IN
president/NN
of/IN
his/PRP$
previous/JJ
company/NN
./.
But/CC
going/VBG
against/IN
the/DT
grain/NN
has/VBZ
never/RB
bothered/VBN
Mr./NNP
Andersson/NNP
./.
Stroking/VBG
his/PRP$
trademark/NN
white/JJ
goatee/NN
during/IN
a/DT
recent/JJ
interview/NN
,/,
the/DT
diminutive/JJ
Swede/NN
quips/VBZ
:/:
``/``
It/PRP
turned/VBD
out/RP
to/TO
be/VB
lucky/JJ
for/IN
us/PRP
./.
If/IN
the/DT
whole/JJ
market/NN
thinks/VBZ
what/WP
you/PRP
're/VBP
doing/VBG
is/VBZ
crazy/JJ
you/PRP
do/VBP
n't/RB
have/VB
much/JJ
competition/NN
./.
''/''
Mr./NNP
Andersson/NNP
is/VBZ
anxious/JJ
to/TO
strengthen/VB
Trelleborg/NNP
's/POS
balance/NN
sheet/NN
./.
Characteristically/RB
,/,
he/PRP
did/VBD
n't/RB
waste/VB
much/JJ
time/NN
getting/VBG
started/VBD
./.
On/IN
Tuesday/NNP
,/,
Trelleborg/NNP
's/POS
directors/NNS
announced/VBD
plans/NNS
to/TO
spin/VB
off/RP
two/CD
big/JJ
divisions/NNS
--/:
minerals/NNS
processing/NN
,/,
and/CC
building/NN
and/CC
distribution/NN
--/:
as/RB
separately/RB
quoted/VBN
companies/NNS
on/IN
Stockholm/NNP
's/POS
Stock/NNP
Exchange/NNP
./.
At/IN
current/JJ
market/NN
prices/NNS
,/,
the/DT
twin/JJ
public/JJ
offerings/NNS
to/TO
be/VB
completed/VBN
next/JJ
year/NN
would/MD
add/VB
an/DT
estimated/VBN
2.5/CD
billion/CD
Swedish/JJ
kronor/NN
$/$
386/CD
million/CD
Trelleborg/NNP
's/POS
coffers/NNS
,/,
analysts/NNS
say/VBP
./.
The/DT
board/NN
had/VBD
also/RB
been/VBN
expected/VBN
to/TO
approve/VB
a/DT
SKr1.5/NNS
billion/CD
international/JJ
offering/NN
of/IN
new/JJ
Trelleborg/NNP
shares/NNS
./.
But/CC
that/DT
share/NN
issue/NN
--/:
intended/VBN
to/TO
make/VB
Trelleborg/NNP
better/RBR
known/VBN
among/IN
international/JJ
investors/NNS
--/:
was/VBD
postponed/VBN
until/IN
market/NN
conditions/NNS
stabilize/VBP
,/,
people/NNS
familiar/JJ
with/IN
the/DT
situation/NN
say/VBP
./.
Trelleborg/NNP
's/POS
internationally/RB
traded/VBN
``/``
Bfree/NNP
''/''
series/NN
stock/NN
plunged/VBD
SKr29/NNS
$/$
4.48/CD
SKr205/NNS
$/$
31.65/CD
volatile/JJ
trading/NN
Monday/NNP
in/IN
Stockholm/NNP
./.
Tuesday/NNP
,/,
the/DT
shares/NNS
regained/VBD
SKr20/NNS
,/,
closing/VBG
at/IN
SKr225/NNS
./.
Mr./NNP
Andersson/NNP
says/VBZ
he/PRP
is/VBZ
confident/JJ
that/IN
taking/VBG
parts/NNS
of/IN
the/DT
company/NN
public/NN
will/MD
help/VB
erase/VB
the/DT
``/``
conglomerate/JJ
stigma/NN
''/''
that/WDT
has/VBZ
held/VBN
down/RP
Trelleborg/NNP
's/POS
share/NN
price/NN
./.
Trelleborg/NNP
plans/VBZ
to/TO
remain/VB
the/DT
dominant/JJ
shareholder/NN
with/IN
stakes/NNS
of/IN
slightly/RB
less/JJR
than/IN
50/CD
%/NN
of/IN
both/DT
units/NNS
./.
The/DT
spinoff/NN
should/MD
solve/VB
a/DT
problem/NN
for/IN
the/DT
parent/NN
./.
A/DT
family/NN
foundation/NN
set/VBN
up/RP
by/IN
late/JJ
founder/NN
Henry/NNP
Dunker/NNP
controls/VBZ
59/CD
%/NN
of/IN
Trelleborg/NNP
's/POS
voting/NN
shares/NNS
outstanding/JJ
./.
But/CC
the/DT
foundation/NN
bylaws/NNS
require/VBP
the/JJ
entire/NN
Trelleborg/NNP
stake/NN
to/TO
be/VB
sold/VBN
in/IN
the/DT
open/JJ
market/NN
if/IN
control/NN
drops/VBZ
below/IN
50/CD
%/NN
./.
That/DT
possibility/NN
had/VBD
crept/VBN
closer/RBR
as/IN
repeated/VBN
new/JJ
share/NN
offerings/NNS
to/TO
finance/VB
Trelleborg/NNP
's/POS
rapid/JJ
growth/NN
steadily/RB
diluted/VBD
the/DT
foundation/NN
's/POS
holding/NN
./.
That/DT
growth/NN
is/VBZ
the/DT
result/NN
of/IN
Mr./NNP
Andersson/NNP
's/POS
shopping/NN
spree/NN
,/,
during/IN
which/WDT
he/PRP
has/VBZ
bought/VBN
and/CC
sold/VBN
more/JJR
than/IN
100/CD
companies/NNS
during/IN
the/DT
past/JJ
five/CD
years/NNS
./.
Most/JJS
of/IN
the/DT
new/JJ
additions/NNS
were/VBD
barely/RB
profitable/JJ
,/,
if/IN
not/RB
outright/JJ
loss/NN
makers/NNS
./.
Applying/VBG
prowess/NN
gained/VBN
during/IN
earlier/JJR
stints/NNS
at/IN
appliance/NN
maker/NN
AB/NNP
Electrolux/NNP
,/,
Mr./NNP
Andersson/NNP
and/CC
a/DT
handful/NN
of/IN
loyal/JJ
lieutenants/NNS
aggressively/RB
stripped/VBN
away/RB
dead/JJ
wood/NN
--/:
and/CC
got/VBD
quick/JJ
results/NNS
./.
The/DT
treatment/NN
turned/VBD
Trelleborg/NNP
into/IN
one/CD
of/IN
Scandinavia/NNP
's/POS
biggest/JJS
and/CC
fastest-growing/JJ
industrial/JJ
concerns/NNS
./.
Between/IN
1985/CD
and/CC
1988/CD
,/,
sales/NNS
multipled/VBD
more/RBR
than/IN
10/CD
times/NNS
and/CC
pretax/JJ
profit/NN
surged/VBD
almost/RB
twelvefold/JJ
./.
Many/JJ
analysts/NNS
expect/VBP
Mr./NNP
Andersson/NNP
,/,
who/WP
owns/VBZ
1.7/CD
%/NN
of/IN
the/DT
company/NN
,/,
to/TO
be/VB
named/VBN
Trelleborg/NNP
's/POS
new/JJ
chairman/NN
when/WRB
Ernst/NNP
Herslow/NNP
steps/NNS
down/IN
next/JJ
year/NN
./.
But/CC
the/DT
promotion/NN
is/VBZ
n't/RB
likely/JJ
to/TO
alter/VB
a/DT
management/NN
style/NN
Mr./NNP
Andersson/NNP
describes/VBZ
as/IN
``/``
being/VBG
the/DT
driving/VBG
force/NN
leading/VBG
the/DT
troops/NNS
,/,
not/RB
managing/VBG
by/IN
sitting/VBG
back/RB
with/IN
a/DT
cigar/NN
waiting/VBG
for/IN
people/NNS
to/TO
bring/VB
me/PRP
ideas/NNS
./.
''/''
Last/JJ
month/NN
,/,
in/IN
his/PRP$
boldest/JJS
move/NN
yet/RB
,/,
Mr./NNP
Andersson/NNP
and/CC
Trelleborg/NNP
joined/VBD
forces/NNS
with/IN
Canada/NNP
's/POS
Noranda/NNP
Inc./NNP
in/IN
a/DT
joint/JJ
$/$
2/CD
billion/CD
hostile/NN
takeover/NN
of/IN
another/DT
big/JJ
Canadian/JJ
mining/NN
concern/NN
,/,
Falconbridge/NNP
Ltd/NNP
./.
Industry/NN
analysts/NNS
suggest/VBP
that/IN
the/DT
conquest/NN
of/IN
Falconbridge/NNP
could/MD
vault/VB
Trelleborg/NNP
from/IN
a/DT
regional/JJ
Scandinavian/JJ
success/NN
story/NN
to/TO
a/DT
world-class/JJ
mining/NN
concern/NN
./.
``/``
Trelleborg/NNP
is/VBZ
n't/RB
in/IN
the/DT
same/JJ
league/NN
yet/RB
as/IN
mining/NN
giants/NNS
such/JJ
as/IN
RTZ/NNP
Corp./NNP
or/CC
Anglo-American/NNP
Corp./NNP
,/,
''/''
says/VBZ
Mike/NNP
Kurtanjek/NNP
,/,
a/DT
mining/NN
analyst/NN
at/IN
James/NNP
Capel/NNP
&/CC
Co./NNP
,/,
London/NNP
./.
``/``
But/CC
we/PRP
certainly/RB
like/VBP
what/WP
we/PRP
've/VBP
seen/VBN
so/RB
far/RB
./.
''/''
But/CC
Trelleborg/NNP
still/RB
must/MD
clear/VB
some/DT
tough/JJ
hurdles/NNS
./.
Mr./NNP
Andersson/NNP
acknowledges/VBZ
that/IN
the/DT
company/NN
's/POS
mining/NN
division/NN
``/``
will/MD
be/VB
busy/JJ
for/IN
a/DT
while/NN
digesting/VBG
its/PRP$
recent/JJ
expansion/NN
./.
''/''
Booming/JJ
metals/NNS
prices/NNS
have/VBP
fueled/VBN
Trelleborg/NNP
's/POS
recent/JJ
profit/NN
surge/NN
,/,
raising/VBG
mining/NN
's/POS
share/NN
of/IN
pretax/JJ
profit/NN
to/TO
68/CD
%/NN
this/DT
year/NN
from/IN
a/DT
big/JJ
loss/NN
two/CD
years/NNS
earlier/RBR
./.
But/CC
analysts/NNS
caution/VBP
an/DT
expected/VBN
fall/NN
in/IN
metal/NN
prices/NNS
next/JJ
year/NN
could/MD
slow/VB
profit/NN
growth/NN
./.
Mining/NN
is/VBZ
likely/JJ
to/TO
remain/VB
Trelleborg/NNP
's/POS
main/JJ
business/NN
./.
Analysts/NNS
say/VBP
its/PRP$
chances/NNS
of/IN
success/NN
will/MD
likely/RB
hinge/VB
on/IN
how/WRB
well/RB
Trelleborg/NNP
manages/VBZ
to/TO
cooperate/VB
with/IN
Noranda/NNP
in/IN
the/DT
Falconbridge/NNP
venture/NN
./.
Noranda/NNP
and/CC
Trelleborg/NNP
each/DT
came/VBD
close/RB
to/TO
winning/VBG
Falconbridge/NNP
alone/RB
before/IN
the/DT
successful/JJ
joint/NN
bid/NN
./.
Some/DT
analysts/NNS
say/VBP
Noranda/NNP
would/MD
prefer/VB
to/TO
break/VB
up/RP
Falconbridge/NNP
,/,
and/CC
that/IN
the/DT
Swedes/NNS
--/:
relatively/RB
inexperienced/JJ
in/IN
international/JJ
mining/NN
operations/NNS
--/:
could/MD
have/VB
problems/NNS
holding/VBG
their/PRP$
own/JJ
with/IN
a/DT
much/RB
bigger/JJR
partner/NN
like/IN
Noranda/NNP
operating/VBG
on/IN
its/PRP$
home/NN
turf/NN
./.
Mr./NNP
Andersson/NNP
insists/VBZ
that/IN
Trelleborg/NNP
and/CC
Noranda/NNP
have/VBP
n't/RB
discussed/VBN
a/DT
Falconbridge/NNP
break-up/NN
./.
Falconbridge/NNP
,/,
he/PRP
says/VBZ
,/,
will/MD
continue/VB
operating/VBG
in/IN
its/PRP$
current/JJ
form/NN
./.
``/``
We/PRP
'd/MD
be/VB
reluctant/JJ
to/TO
accept/VB
50-50/CD
ownership/NN
in/IN
a/DT
manufacturing/NN
company/NN
./.
But/CC
such/JJ
partnerships/NNS
are/VBP
common/JJ
in/IN
mining/NN
,/,
where/WRB
there/EX
are/VBP
n't/RB
problems/NNS
or/CC
conflict/NN
of/IN
interest/NN
or/CC
risk/NN
of/IN
cheating/VBG
by/IN
a/DT
partner/NN
,/,
''/''
Trelleborg/NNP
's/POS
president/NN
says/VBZ
./.
Perhaps/RB
more/RBR
important/JJ
,/,
both/DT
companies/NNS
share/VBP
Mr./NNP
Andersson/NNP
's/POS
belief/NN
in/IN
the/DT
coming/JJ
renaissance/NN
of/IN
base/NN
industries/NNS
./.
``/``
If/IN
the/DT
1980s/CD
were/VBD
a/DT
decade/NN
of/IN
consumption/NN
,/,
the/DT
'90s/CD
will/MD
be/VB
the/DT
investment/NN
decade/NN
,/,
''/''
Mr./NNP
Andersson/NNP
says/VBZ
./.
``/``
The/DT
whole/NN
of/IN
Europe/NNP
and/CC
the/DT
industrialized/JJ
world/NN
is/VBZ
suffering/VBG
from/IN
a/DT
breakdown/NN
in/IN
infrastructure/NN
investment/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
That/DT
's/VBZ
beginning/VBG
to/TO
change/VB
./.
And/CC
investment/NN
is/VBZ
the/DT
key/JJ
word/NN
for/IN
base/NN
metals/NNS
,/,
and/CC
most/JJS
other/JJ
businesses/NNS
Trelleborg/NNP
is/VBZ
in/IN
./.
''/''
Apple/NNP
Computer/NNP
Inc./NNP
posted/VBD
improved/VBN
fiscal/JJ
fourth-quarter/JJ
profit/NN
due/RB
largely/RB
to/TO
a/DT
$/$
48/CD
million/CD
gain/NN
on/IN
the/DT
sale/NN
of/IN
its/PRP$
stock/NN
in/IN
Adobe/NNP
Systems/NNP
Inc/NNP
./.
Excluding/VBG
the/DT
gain/NN
,/,
the/DT
company/NN
registered/VBD
a/DT
modest/JJ
4.6/CD
%/NN
increase/NN
for/IN
the/DT
quarter/NN
ended/VBN
Sept./NNP
29/CD
to/TO
$/$
113/CD
million/CD
,/,
or/CC
87/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
the/DT
year-earlier/JJ
$/$
107.9/CD
million/CD
,/,
or/CC
84/CD
cents/NNS
a/DT
share/NN
./.
Proceeds/NNP
of/IN
the/DT
Adobe/NNP
sale/NN
brought/VBD
net/JJ
income/NN
in/IN
the/DT
quarter/NN
to/TO
$/$
161.1/CD
million/CD
,/,
or/CC
$/$
1.24/CD
a/DT
share/NN
./.
Apple/NNP
shares/NNS
fell/VBD
75/CD
cents/NNS
in/IN
over-the-counter/JJ
trading/NN
to/TO
close/VB
at/IN
$/$
48/CD
a/DT
share/NN
./.
Fiscal/JJ
fourth-quarter/JJ
sales/NNS
grew/VBD
about/RB
18/CD
%/NN
to/TO
$/$
1.38/CD
billion/CD
from/IN
$/$
1.17/CD
billion/CD
a/DT
year/NN
earlier/RBR

./.
Without/IN
the/DT
Adobe/NNP
gain/NN
,/,
Apple/NNP
's/POS
full-year/JJ
operating/NN
profit/NN
edged/VBD
up/RB
1.5/CD
%/NN
to/TO
$/$
406/CD
million/CD
,/,
or/CC
$/$
3.16/CD
a/DT
share/NN
,/,
from/IN
$/$
400.3/CD
million/CD
,/,
or/CC
$/$
3.08/CD
a/DT
share/NN
./.
Including/VBG
the/DT
Adobe/NNP
gain/NN
,/,
full-year/JJ
net/NN
was/VBD
$/$
454/CD
million/CD
,/,
or/CC
$/$
3.53/CD
a/DT
share/NN
./.
Sales/NNS
for/IN
the/DT
year/NN
rose/VBD
nearly/RB
30/CD
%/NN
to/TO
$/$
5.28/CD
billion/CD
from/IN
$/$
4.07/CD
billion/CD
a/DT
year/NN
earlier/RBR
./.
John/NNP
Sculley/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
,/,
credited/VBD
the/DT
Macintosh/NNP
SE\/30/NNP
and/CC
IIcx/NNP
computers/NNS
,/,
introduced/VBN
in/IN
the/DT
winter/NN
,/,
for/IN
the/DT
brightened/VBN
sales/NNS
performance/NN
./.
Mr./NNP
Sculley/NNP
also/RB
indicated/VBD
that/IN
sagging/VBG
margins/NNS
,/,
which/WDT
dogged/VBD
the/DT
company/NN
through/IN
most/JJS
of/IN
1989/CD
,/,
began/VBD
to/TO
turn/VB
up/RP
in/IN
the/DT
fourth/JJ
quarter/NN
as/IN
chip/NN
prices/NNS
eased/VBD
./.
``/``
Adverse/JJ
pressure/NN
on/IN
gross/JJ
margins/NNS
.../:
has/VBZ
subsided/VBN
,/,
''/''
Mr./NNP
Sculley/NNP
said/VBD
./.
Margins/NNS
in/IN
the/DT
fiscal/JJ
fourth/JJ
quarter/NN
perked/VBD
up/RP
,/,
rising/VBG
to/TO
51/CD
%/NN
from/IN
49.2/CD
%/NN
a/DT
year/NN
earlier/RBR
./.
For/IN
all/DT
of/IN
fiscal/JJ
1989/CD
,/,
however/RB
,/,
the/DT
average/JJ
gross/JJ
margin/NN
was/VBD
49/CD
%/NN
,/,
below/IN
the/DT
average/JJ
1988/CD
gross/JJ
margin/NN
of/IN
51/CD
%/NN
./.
Lower/JJR
component/NN
costs/NNS
--/:
especially/RB
for/IN
DRAMs/NNS
,/,
or/CC
dynamic/JJ
random/JJ
access/NN
memory/NN
chips/NNS
--/:
were/VBD
cited/VBN
for/IN
the/DT
easing/NN
of/IN
margin/NN
pressure/NN
on/IN
the/DT
company/NN
,/,
a/DT
spokeswoman/NN
said/VBD
./.
Looking/VBG
ahead/RB
to/TO
1990/CD
,/,
Mr./NNP
Sculley/NNP
predicted/VBD
``/``
another/DT
year/NN
of/IN
significant/JJ
revenue/NN
growth/NN
,/,
''/''
along/IN
with/IN
improved/VBN
profitability/NN
,/,
as/IN
the/DT
recovery/NN
in/IN
gross/JJ
margins/NNS
continues/VBZ
into/IN
1990/CD
./.
Gary/NNP
J./NNP
Schantz/NNP
,/,
44/CD
years/NNS
old/JJ
,/,
was/VBD
named/VBN
president/NN
and/CC
chief/JJ
operating/VBG
officer/NN
./.
Polymerix/NNP
makes/VBZ
lumber-like/JJ
materials/NNS
that/IN
it/PRP
describes/VBZ
as/IN
``/``
plastic/JJ
wood/NN
./.
''/''
The/DT
operating/VBG
chief/NN
's/POS
post/NN
is/VBZ
new/JJ
./.
Martin/NNP
Schrager/NNP
,/,
51/CD
,/,
who/WP
had/VBD
been/VBN
president/NN
,/,
was/VBD
named/VBN
vice/NN
chairman/NN
./.
He/PRP
remains/VBZ
chief/JJ
executive/NN
officer/NN
./.
Mr./NNP
Schantz/NNP
was/VBD
vice/NN
president/NN
and/CC
chief/JJ
operating/VBG
officer/NN
of/IN
the/DT
Acrylic/NNP
division/NN
of/IN
Polycast/NNP
Technology/NNP
Corp/NNP
./.
Separately/RB
,/,
the/DT
board/NN
expanded/VBD
to/TO
six/CD
members/NNS
with/IN
the/DT
election/NN
of/IN
David/NNP
L./NNP
Holewinski/NNP
,/,
a/DT
consultant/NN
./.
The/DT
company/NN
also/RB
said/VBD
it/PRP
privately/RB
placed/VBD
stock/NN
and/CC
warrants/NNS
in/IN
exchange/NN
for/IN
$/$
750,000/CD
./.
Terry/NNP
L./NNP
Haines/NNP
,/,
formerly/RB
general/JJ
manager/NN
of/IN
Canadian/JJ
operations/NNS
,/,
was/VBD
elected/VBN
to/TO
the/DT
new/JJ
position/NN
of/IN
vice/NN
president/NN
,/,
North/JJ
American/JJ
sales/NNS
,/,
of/IN
this/DT
plastics/NNS
concern/NN
./.
Also/RB
,/,
Larry/NNP
A./NNP
Kushkin/NNP
,/,
executive/JJ
vice/NN
president/NN
,/,
North/JJ
American/JJ
operations/NNS
,/,
was/VBD
named/VBN
head/NN
of/IN
the/DT
company/NN
's/POS
international/JJ
automotive/JJ
operations/NNS
,/,
another/DT
new/JJ
position/NN
./.
He/PRP
remains/VBZ
an/DT
executive/JJ
vice/NN
president/NN
,/,
the/DT
company/NN
said/VBD
,/,
and/CC
his/PRP$
new/JJ
position/NN
reflects/VBZ
``/``
the/DT
growing/VBG
importance/NN
of/IN
the/DT
world/NN
automotive/JJ
market/NN
as/IN
a/DT
market/NN
for/IN
A./NNP
Schulman/NNP
's/POS
high/JJ
performance/NN
plastic/NN
materials/NNS
./.
''/''
Gordon/NNP
Trimmer/NNP
will/MD
succeed/VB
Mr./NNP
Haines/NNP
as/IN
manager/NN
of/IN
Canadian/NNP
operations/NNS
,/,
and/CC
Mr./NNP
Kushkin/NNP
's/POS
former/JJ
position/NN
is/VBZ
n't/RB
being/VBG
filled/VBN
at/IN
this/DT
time/NN
,/,
the/DT
company/NN
said/VBD
./.
General/NNP
Electric/NNP
Co./NNP
said/VBD
it/PRP
signed/VBD
a/DT
contract/NN
with/IN
the/DT
developers/NNS
of/IN
the/DT
Ocean/NNP
State/NNP
Power/NNP
project/NN
for/IN
the/DT
second/JJ
phase/NN
of/IN
an/DT
independent/JJ
$/$
400/CD
million/CD
power/NN
plant/NN
,/,
which/WDT
is/VBZ
being/VBG
built/VBN
in/IN
Burrillville/NNP
,/,
R.I/NNP
./.
GE/NNP
,/,
along/IN
with/IN
a/DT
division/NN
of/IN
Ebasco/NNP
,/,
a/DT
subsidiary/NN
of/IN
Enserch/NNP
Corp./NNP
,/,
have/VBP
been/VBN
building/VBG
the/DT
first/JJ
250-megawatt/JJ
phase/NN
of/IN
the/DT
project/NN
,/,
which/WDT
they/PRP
expect/VBP
to/TO
complete/VB
in/IN
late/JJ
1990/CD
./.
The/DT
second/JJ
portion/NN
will/MD
be/VB
completed/VBN
the/DT
following/JJ
year/NN
./.
GE/NNP
's/POS
Power/NNP
Generation/NNP
subsidiary/NN
will/MD
operate/VB
and/CC
maintain/VB
the/DT
plant/NN
upon/IN
its/PRP$
completion/NN
./.
The/DT
Environmental/NNP
Protection/NNP
Agency/NNP
is/VBZ
getting/VBG
a/DT
lot/NN
out/IN
of/IN
the/DT
Superfund/NNP
program/NN
./.
Of/IN
the/DT
$/$
4.4/CD
billion/CD
spent/VBN
so/RB
far/RB
on/IN
the/DT
program/NN
,/,
60/CD
%/NN
is/VBZ
going/VBG
for/IN
administrative/JJ
costs/NNS
,/,
management/NN
and/CC
research/NN
,/,
the/DT
Office/NNP
of/IN
Technology/NNP
Assessment/NNP
just/RB
reported/VBD
./.
Only/RB
36/CD
of/IN
1,200/CD
priority/JJ
cleanup/NN
sites/NNS
have/VBP
been/VBN
``/``
decontaminated/VBN
./.
''/''
Over/IN
the/DT
next/JJ
50/CD
years/NNS
,/,
$/$
500/CD
billion/CD
is/VBZ
earmarked/VBN
for/IN
the/DT
program/NN
./.
At/IN
current/JJ
allocations/NNS
,/,
that/WDT
means/VBZ
EPA/NNP
will/MD
be/VB
spending/VBG
$/$
300/CD
billion/CD
on/IN
itself/PRP
./.
It/PRP
may/MD
not/RB
be/VB
toxic/JJ
,/,
but/CC
we/PRP
know/VBP
where/WRB
one/CD
waste/NN
dump/NN
is/VBZ
./.
Chambers/NNP
Development/NNP
Co./NNP
said/VBD
its/PRP$
Security/NNP
Bureau/NNP
Inc./NNP
unit/NN
purchased/VBN
two/CD
security/NN
concerns/NNS
in/IN
Florida/NNP
that/WDT
will/MD
add/VB
$/$
2.1/CD
million/CD
of/IN
annual/JJ
revenue/NN
./.
Purchase/NN
of/IN
the/DT
businesses/NNS
serving/VBG
Miami/NNP
,/,
Fort/NNP
Lauderdale/NNP
and/CC
West/NNP
Palm/NNP
Beach/NNP
,/,
Fla./NNP
,/,
is/VBZ
part/NN
of/IN
a/DT
plan/NN
by/IN
Chambers/NNS
to/TO
expand/VB
in/IN
the/DT
growing/JJ
security/NN
industry/NN
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Basf/NNP
AG/NNP
said/VBD
it/PRP
moved/VBD
its/PRP$
headquarters/NN
for/IN
Latin/NNP
America/NNP
to/TO
Mexico/NNP
and/CC
the/DT
headquarters/NN
for/IN
the/DT
Asia\/Australia/JJ
regional/JJ
division/NN
to/TO
Singapore/NNP
,/,
effective/NN
Oct/NNP
./.
The/DT
central/NN
offices/NNS
for/IN
both/DT
regions/NNS
were/VBD
previously/RB
located/VBN
in/IN
Ludwigshafen/NNP
,/,
Basf/NNP
headquarters/NN
./.
The/DT
West/NNP
German/NNP
chemical/NN
concern/NN
called/VBD
the/DT
moves/VBZ
a/DT
further/JJ
step/NN
in/IN
the/DT
internationalization/NN
of/IN
its/PRP$
business/NN
activities/NNS
./.
Both/DT
regions/NNS
are/VBP
the/DT
fastest-growing/JJ
areas/NNS
for/IN
Basf/NNP
,/,
the/DT
company/NN
said/VBD
./.
David/NNP
H./NNP
Eisenberg/NNP
,/,
53/CD
years/NNS
old/JJ
,/,
was/VBD
named/VBN
president/NN
and/CC
chief/JJ
operating/VBG
officer/NN
of/IN
Imasco/NNP
's/POS
500-store/JJ
Peoples/NNP
Drug/NNP
Stores/NNP
Inc./NNP
unit/NN
,/,
based/VBN
in/IN
Alexandria/NNP
,/,
Va/NNP
./.
Mr./NNP
Eisenberg/NNP
was/VBD
senior/JJ
executive/JJ
vice/NN
president/NN
and/CC
chief/JJ
operating/VBG
officer/NN
./.
Imasco/NNP
is/VBZ
a/DT
tobacco/NN
,/,
retailing/NN
,/,
restaurant/NN
and/CC
financial/JJ
services/NNS
concern/NN
./.
Lotus/NNP
Development/NNP
Corp./NNP
is/VBZ
in/IN
talks/NNS
to/TO
sell/VB
its/PRP$
Signal/NNP
stock-quote/JJ
service/NN
to/TO
Infotechnology/NNP
Inc./NNP
,/,
the/DT
New/NNP
York/NNP
parent/NN
of/IN
Financial/NNP
News/NNP
Network/NNP
,/,
people/NNS
familiar/JJ
with/IN
the/DT
negotiations/NNS
said/VBD
./.
They/PRP
said/VBD
the/DT
price/NN
would/MD
be/VB
around/RB
$/$
10/CD
million/CD
./.
Signal/NNP
,/,
which/WDT
has/VBZ
an/DT
estimated/VBN
10,000/CD
subscribers/NNS
and/CC
is/VBZ
profitable/JJ
,/,
provides/VBZ
stock/NN
quotes/NNS
over/IN
an/DT
FM/NN
radio/NN
band/NN
that/WDT
can/MD
be/VB
received/VBN
by/IN
specially/RB
equipped/VBN
personal/JJ
computers/NNS
./.
The/DT
computers/NNS
will/MD
display/VB
stock/NN
prices/NNS
selected/VBN
by/IN
users/NNS
./.
Lotus/NNP
,/,
Cambridge/NNP
,/,
Mass./NNP
,/,
has/VBZ
been/VBN
rumored/VBN
to/TO
have/VB
the/DT
sale/NN
of/IN
the/DT
four-year-old/JJ
unit/NN
under/IN
consideration/NN
for/IN
a/DT
year/NN
./.
The/DT
business/NN
is/VBZ
n't/RB
related/VBN
to/TO
Lotus/NNP
's/POS
main/JJ
businesses/NNS
of/IN
making/VBG
computer/NN
software/NN
and/CC
publishing/VBG
information/NN
on/IN
compact/JJ
disks/NNS
./.
``/``
Please/UH
submit/VB

















































your/PRP$
offers/NNS
,/,
''/''
says/VBZ
Felipe/NNP
Bince/NNP
Jr/NNP
./.
He/PRP
surveys/VBZ
the/DT
prospective/JJ
investors/NNS
gathered/VBN
in/IN
the/DT
board/NN
room/NN
of/IN
the/DT
Philippine/JJ
government/NN
's/POS
Asset/NNP
Privatization/NNP
Trust/NNP
for/IN
the/DT
sale/NN
of/IN
a/DT
36/CD
%/NN
interest/NN
in/IN
the/DT
country/NN
's/POS
largest/JJS
paper/NN
mill/NN
./.
The/DT
agency/NN
expects/VBZ
the/DT
bids/NNS
to/TO
be/VB
equivalent/JJ
of/IN
more/JJR
than/IN
$/$
80/CD
million/CD
./.
Not/RB
a/DT
peso/NN
is/VBZ
offered/VBN
./.
Mr./NNP
Bince/NNP
,/,
the/DT
trust/NN
's/POS
associate/JJ
executive/JJ
trustee/NN
,/,
declares/VBZ
the/DT
bidding/NN
a/DT
failure/NN
./.
``/``
It/PRP
's/VBZ
getting/VBG
harder/RB
to/TO
sell/VB
,/,
''/''
he/PRP
mutters/NNS
as/IN
he/PRP
leaves/VBZ
the/DT
room/NN
./.
Indeed/UH
./.
Recently/RB
,/,
the/DT
trust/NN
failed/VBD
to/TO
auction/VB
off/RP
the/DT
paper/NN
mill/NN
,/,
a/DT
bank/NN
,/,
an/DT
office/NN
building/NN
and/CC
a/DT
small/JJ
cotton-ginning/JJ
plant/NN
./.
Of/IN
the/DT
four/CD
,/,
only/RB
the/DT
bank/NN
and/CC
the/DT
plant/NN
drew/VBD
bids/NNS
--/:
one/CD
apiece/RB
./.
In/IN
October/NNP
1987/CD
,/,
President/NNP
Corazon/NNP
Aquino/NNP
vowed/VBD
that/DT
her/PRP$
government/NN
would/MD
``/``
get/VB
out/RB
of/IN
business/NN
''/''
by/IN
selling/VBG
all/DT
or/CC
part/NN
of/IN
the/DT
state/NN
's/POS
holdings/NNS
in/IN
the/DT
many/JJ
companies/NNS
taken/VBN
over/RP
by/IN
the/DT
government/NN
during/IN
the/DT
20-year/JJ
rule/NN
of/IN
Ferdinand/NNP
Marcos/NNP
./.
Two/CD
years/NNS
later/RBR
,/,
Mrs./NNP
Aquino/NNP
's/POS
promise/NN
remains/VBZ
largely/RB
unfulfilled/JJ
./.
October/NNP
is/VBZ
a/DT
critical/JJ
month/NN
for/IN
the/DT
privatization/NN
program/NN
./.
Manila/NNP
is/VBZ
offering/VBG
several/JJ
major/JJ
assets/NNS
for/IN
the/DT
first/JJ
time/NN
and/CC
is/VBZ
trying/VBG
to/TO
conclude/VB
sales/NNS
already/RB
arranged/VBN
./.
In/IN
addition/NN
,/,
the/DT
government/NN
is/VBZ
scheduled/VBN
to/TO
unveil/VB
plans/NNS
for/IN
privatizing/VBG
Philippine/NNP
Airlines/NNP
,/,
the/DT
national/JJ
carrier/NN
,/,
an/DT
effort/NN
that/DT
lawyer/NN
and/CC
business/NN
columnist/NN
Rodolfo/NNP
Romero/NNP
calls/VBZ
``/``
the/DT
bellwether/NN
of/IN
privatization/NN
./.
''/''
All/DT
told/VBD
,/,
there/EX
are/VBP
assets/NNS
on/IN
the/DT
line/NN
valued/VBN
at/IN
up/IN
to/TO
$/$
1.03/CD
billion/CD
./.
The/DT
privatization/NN
program/NN
is/VBZ
designed/VBN
to/TO
rid/VB
the/DT
government/NN
of/IN
hundreds/NNS
of/IN
assets/NNS
and/CC
to/TO
raise/VB
critically/RB
needed/VBN
funds/NNS
./.
Much/RB
of/IN
the/DT
money/NN
from/IN
the/DT
sales/NNS
is/VBZ
earmarked/VBN
for/IN
a/DT
multibillion-dollar/JJ
agrarian-reform/JJ
program/NN
./.
But/CC
efforts/NNS
have/VBP
been/VBN
thwarted/VBN
by/IN
official/JJ
indifference/NN
,/,
bureaucratic/JJ
resistance/NN
,/,
a/DT
legal/JJ
system/NN
that/WDT
operates/VBZ
at/IN
a/DT
snail/NN
's/POS
pace/NN
,/,
political/JJ
opposition/NN
and/CC
government/NN
misjudgments/NNS
./.
Most/RBS
recently/RB
,/,
a/DT
lack/NN
of/IN
buyers/NNS
has/VBZ
been/VBN
added/VBN
to/TO
the/DT
list/NN
./.
Rather/RB
than/IN
gathering/VBG
momentum/NN
,/,
the/DT
program/NN
is/VBZ
in/IN
danger/NN
of/IN
slowing/VBG
even/RB
more/RBR
as/IN
the/DT
government/NN
tackles/VBZ
several/JJ
big/JJ
assets/NNS
./.
The/DT
axiom/NN
appears/VBZ
to/TO
be/VB
that/IN
the/DT
more/RBR
valuable/JJ
the/DT
asset/NN
,/,
the/DT
harder/JJR
the/DT
privatization/NN
process/NN
./.
``/``
You/PRP
just/RB
do/VBP
n't/RB
see/VB
a/DT
whole/JJ
lot/NN
happening/VBG
,/,
''/''
says/VBZ
an/DT
international/JJ
economist/NN
./.
To/TO
be/VB
sure/JJ
,/,
the/DT
program/NN
has/VBZ
n't/RB
completely/RB
stalled/VBN
./.
The/DT
Asset/NNP
Privatization/NNP
Trust/NNP
,/,
the/DT
agency/NN
chiefly/RB
responsible/JJ
for/IN
selling/VBG
government-held/JJ
properties/NNS
,/,
has/VBZ
recorded/VBN
sales/NNS
of/IN
more/JJR
than/IN
$/$
500/CD
million/CD
since/IN
it/PRP
began/VBD
functioning/VBG
in/IN
December/NNP
1986/CD
./.
But/CC
its/PRP$
success/NN
has/VBZ
been/VBN
largely/RB
in/IN
the/DT
sale/NN
of/IN
small/JJ
,/,
nonperforming/JJ
companies/NNS
,/,
which/WDT
are/VBP
valued/VBN
for/IN
their/PRP$
assets/NNS
./.
Dealing/VBG
with/IN
the/DT
sales/NNS
this/DT
month/NN
could/MD
be/VB
particularly/RB
challenging/JJ
because/IN
almost/RB
every/DT
problem/NN
that/WDT
has/VBZ
hobbled/VBN
the/DT
program/NN
in/IN
the/DT
past/NN
is/VBZ
popping/VBG
up/RP
again/RB
./.
Ramon/NNP
Garcia/NNP
,/,
the/DT
Asset/NNP
Trust/NNP
's/POS
executive/NN
trustee/NN
,/,
admits/VBZ
to/TO
what/WP
he/PRP
calls/VBZ
``/``
temporary/JJ
setbacks/NNS
./.
''/''
In/IN
light/NN
of/IN
the/DT
poor/JJ
results/NNS
recently/RB
,/,
he/PRP
says/VBZ
,/,
the/DT
agency/NN
is/VBZ
adopting/VBG
an/DT
``/``
attitude/NN
of/IN
flexibility/NN
./.
''/''
October/NNP
's/POS
troubles/NNS
began/VBD
when/WRB
the/DT
trust/NN
failed/VBD
to/TO
sell/VB
a/DT
state-owned/JJ
commercial/JJ
bank/NN
,/,
Associated/NNP
Bank/NNP
,/,
for/IN
the/DT
minimum/NN
price/NN
of/IN
671/CD
million/CD
pesos/NNS
$/$
31/CD
million/CD
At/IN
the/DT
end/NN
of/IN
the/DT
month/NN
,/,
the/DT
agency/NN
again/RB
will/MD
offer/VB
the/DT
bank/NN
./.
But/CC
instead/RB
of/IN
a/DT
minimum/NN
price/NN
,/,
only/RB
a/DT
target/NN
price/NN
will/MD
be/VB
established/VBN
./.
Bankers/NNS
say/VBP
,/,
however/RB
,/,
that/IN
the/DT
government/NN
may/MD
have/VB
difficulty/NN
selling/VBG
the/DT
institution/NN
even/RB
without/IN
a/DT
floor/NN
price/NN
./.
The/DT
bank/NN
has/VBZ
a/DT
negative/JJ
net/JJ
worth/NN
,/,
they/PRP
say/VBP
./.
In/IN
addition/NN
,/,
special/JJ
bidding/NN
rules/NNS
give/VBP
the/DT
bank/NN
's/POS
former/JJ
owner/NN
,/,
Leonardo/NNP
Ty/NNP
,/,
the/DT
right/NN
to/TO
match/VB
the/DT
highest/JJS
bid/NN
./.
Mr./NNP
Ty/NNP
lost/VBD
control/NN
to/TO
the/DT
government/NN
in/IN
1980/CD
when/WRB
a/DT
government/NN
bank/NN
made/VBD
emergency/NN
loans/NNS
to/TO
the/DT
cash-strapped/JJ
institution/NN
./.
In/IN
1983/CD
,/,
the/DT
loans/NNS
were/VBD
converted/VBN
into/IN
equity/NN
,/,
giving/VBG
Manila/NNP
98/CD
%/NN
of/IN
the/DT
bank/NN
,/,
but/CC
with/IN
the/DT
understanding/NN
that/IN
Mr./NNP
Ty/NNP
had/VBD
repurchase/VBN
rights/NNS
./.
His/PRP$
ability/NN
to/TO
match/VB
any/DT
bid/NN
has/VBZ
scared/VBN
off/RP
many/JJ
potential/JJ
buyers/NNS
./.
Separately/RB
,/,
the/DT
government/NN
will/MD
try/VB
again/RB
within/IN
a/DT
month/NN
to/TO
sell/VB
the/DT
36/CD
%/NN
stake/NN
in/IN
Paper/NNP
Industries/NNP
Corp./NNP
of/IN
the/DT
Philippines/NNP
,/,
or/CC
Picop/NNP
,/,
as/IN
the/DT
paper/NN
mill/NN
is/VBZ
known/VBN
./.
The/DT
price/NN
will/MD
depend/VB
on/IN
how/WRB
much/JJ
Picop/NNP
shares/NNS
fetch/VBP
on/IN
the/DT
local/JJ
stock/NN
market/NN
./.
But/CC
according/VBG
to/TO
bankers/NNS
and/CC
stock/NN
analysts/NNS
who/WP
have/VBP
studied/VBN
the/DT
paper/NN
mill/NN
,/,
price/NN
is/VBZ
n't/RB
the/DT
only/JJ
consideration/NN
./.
As/IN
it/PRP
stands/VBZ
now/RB
,/,
the/DT
government/NN
would/MD
continue/VB
to/TO
hold/VB
45/CD
%/NN
of/IN
Picop/NNP
after/IN
the/DT
36/CD
%/NN
stake/NN
is/VBZ
sold/VBN
./.
7.5/CD
%/NN
of/IN
Picop/NNP
is/VBZ
publicly/RB
traded/VBN
and/CC
other/JJ
shareholders/NNS
own/VBP
the/DT
rest/NN
of/IN
the/DT
equity/NN
./.
Potential/JJ
buyers/NNS
,/,
mostly/RB
foreign/JJ
companies/NNS
,/,
are/VBP
reluctant/JJ
to/TO
take/VB
a/DT
non-controlling/JJ
stake/NN
in/IN
a/DT
company/NN
that/IN
,/,
by/IN
the/DT
government/NN
's/POS
own/JJ
reckoning/NN
,/,
needs/VBZ
some/DT
$/$
100/CD
million/CD
in/IN
new/JJ
capital/NN
for/IN
rehabilitation/NN
./.
The/DT
prospect/NN
of/IN
buying/VBG
into/IN
a/DT
cash-hungry/JJ
company/NN
without/IN
getting/VBG
management/NN
control/NN
persuaded/VBD
at/IN
least/JJS
three/CD
foreign/JJ
buyers/NNS
,/,
including/VBG
a/DT
member/NN
of/IN
the/DT
Elders/NNP
group/NN
of/IN
Australia/NNP
,/,
to/TO
pull/VB
out/RB
of/IN
the/DT
bidding/NN
,/,
the/DT
bankers/NNS
and/CC
analysts/NNS
say/VBP
./.
Mr./NNP
Garcia/NNP
acknowledges/VBZ
the/DT
problem/NN
and/CC
says/VBZ
the/DT
Asset/NNP
Trust/NNP
will/MD
study/VB
why/WRB
the/DT
bidding/NN
failed/VBD
and/CC
what/WP
changes/NNS
the/DT
agency/NN
may/MD
be/VB
able/JJ
to/TO
offer/VB
./.
Under/IN
government/NN
regulations/NNS
,/,
however/RB
,/,
foreign/JJ
ownership/NN
of/IN
Picop/NNP
's/POS
equity/NN
is/VBZ
limited/VBN
to/TO
40/CD
%/NN
./.
Even/RB
though/IN
the/DT
government/NN
would/MD
retain/VB
the/DT
45/CD
%/NN
stake/NN
in/IN
Picop/NNP
,/,
critics/NNS
have/VBP
accused/VBN
the/DT
trust/NN
of/IN
selling/VBG
out/RP
to/TO
foreigners/NNS
./.
A/DT
series/NN
of/IN
newspaper/NN
articles/NNS
accused/VBD
the/DT
trust/NN
of/IN
short-changing/NN
the/DT
government/NN
over/IN
the/DT
Picop/NNP
sale/NN
./.
Mr./NNP
Garcia/NNP
says/VBZ
he/PRP
has/VBZ
been/VBN
notified/VBN
of/IN
congressional/JJ
hearings/NNS
on/IN
the/DT
Picop/NNP
bidding/NN
and/CC
possible/JJ
legislation/NN
covering/VBG
the/DT
paper/NN
mill/NN
's/POS
sale/NN
,/,
both/DT
prompted/VBD
by/IN
the/DT
criticism/NN
of/IN
the/DT
agency/NN
./.
The/DT
question/NN
of/IN
control/NN
could/MD
further/RB
hinder/VB
long-delayed/JJ
plans/NNS
for/IN
the/DT
government/NN
to/TO
divest/VB
itself/PRP
of/IN
Philippine/NNP
Airlines/NNP
,/,
in/IN
which/WDT
it/PRP
has/VBZ
a/DT
99/CD
%/NN
stake/NN
./.
The/DT
carrier/NN
has/VBZ
valuable/JJ
trans-Pacific/JJ
and/CC
Asian/JJ
routes/NNS
but/CC
it/PRP
remains/VBZ
debt-laden/JJ
and/CC
poorly/RB
managed/VBN
./.
This/DT
maker/NN
of/IN
electronic/JJ
measuring/NN
devices/NNS
named/VBD
two/CD
new/JJ
directors/NNS
,/,
increasing/VBG
board/NN
membership/NN
to/TO
nine/CD
./.
The/DT
new/JJ
directors/NNS
are/VBP
Gordon/NNP
M./NNP
Sprenger/NNP
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
LifeSpan/NNP
Inc./NNP
,/,
and/CC
Peter/NNP
S./NNP
Willmott/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
Willmott/NNP
Services/NNP
Inc/NNP
./.
Gerard/NNP
E./NNP
Wood/NNP
,/,
51/CD
years/NNS
old/JJ
,/,
was/VBD
elected/VBN
president/NN
,/,
chief/JJ
executive/NN
officer/NN
and/CC
a/DT
director/NN
of/IN
this/DT
minerals/NNS
and/CC
materials/NNS
company/NN
./.
He/PRP
succeeds/VBZ
Harry/NNP
A./NNP
Durney/NNP
,/,
65/CD
,/,
who/WP
is/VBZ
retiring/VBG
from/IN
active/JJ
duty/NN
but/CC
remains/VBZ
a/DT
director/NN
and/CC
consultant/NN
./.
Mr./NNP
Wood/NNP
has/VBZ
been/VBN
president/NN
and/CC
chief/JJ
executive/NN
of/IN
Steep/NNP
Rock/NNP
Resources/NNP
Inc/NNP
./.
Eagle/NNP
Financial/NNP
Corp./NNP
and/CC
Webster/NNP
Financial/NNP
Corp./NNP
,/,
two/CD
Connecticut/NNP
savings/NNS
bank-holding/JJ
companies/NNS
,/,
agreed/VBD
to/TO
merge/VB
in/IN
a/DT
tax-free/JJ
stock/NN
transaction/NN
./.
The/DT
new/JJ
holding/VBG
company/NN
,/,
Webster\/Eagle/NNP
Bancorp/NNP
Inc./NNP
,/,
will/MD
have/VB
about/RB
$/$
1.2/CD
billion/CD
of/IN
assets/NNS
and/CC
19/CD
banking/NN
offices/NNS
in/IN
Connecticut/NNP
./.
Tangible/JJ
capital/NN
will/MD
be/VB
about/RB
$/$
115/CD
million/CD
./.
The/DT
merger/NN
is/VBZ
subject/JJ
to/TO
regulatory/JJ
clearance/NN
and/CC
a/DT
definitive/JJ
agreement/NN
./.
In/IN
the/DT
merger/NN
,/,
each/DT
share/NN
of/IN
Webster/NNP
,/,
based/VBN
in/IN
Waterbury/NNP
,/,
will/MD
be/VB
converted/VBN
into/IN
one/CD
share/NN
of/IN
the/DT
new/JJ
company/NN
./.
Each/DT
share/NN
of/IN
Eagle/NNP
,/,
based/VBN
in/IN
Bristol/NNP
,/,
will/MD
become/VB
0.95/CD
share/NN
of/IN
Webster\/Eagle/NNP
./.
In/IN
American/NNP
Stock/NNP
Exchange/NNP
composite/NN
trading/NN
Friday/NNP
,/,
Eagle/NNP
shares/NNS
rose/VBD
12.5/CD
cents/NNS
to/TO
$/$
11/CD
./.
In/IN
national/JJ
over-the-counter/JJ
trading/NN
,/,
Webster/NNP
shares/NNS
fell/VBD
25/CD
cents/NNS
to/TO
$/$
12.375/CD
./.
Webster/NNP
has/VBZ
3.5/CD
million/CD
shares/NNS
outstanding/JJ
and/CC
Eagle/NNP
2.6/CD
million/CD
./.
Their/PRP$
indicated/VBN
market/NN
values/NNS
thus/RB
are/VBP
about/RB
$/$
43.3/CD
million/CD
and/CC
$/$
28.6/CD
million/CD
,/,
respectively/RB
./.
Frank/NNP
J./NNP
Pascale/NNP
,/,
chairman/NN
of/IN
Eagle/NNP
,/,
will/MD
be/VB
chairman/NN
of/IN
the/DT
new/JJ
firm/NN
and/CC
James/NNP
C./NNP
Smith/NNP
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
Webster/NNP
,/,
will/MD
take/VB
those/DT
posts/NNS
at/IN
Webster\/Eagle/NNP
./.
Harold/NNP
W./NNP
Smith/NNP
Sr./NNP
,/,
chairman/NN
of/IN
Webster/NNP
,/,
will/MD
become/VB
chairman/NN
emeritus/NN
and/CC
a/DT
director/NN
of/IN
the/DT
new/JJ
company/NN
./.
Ralph/NNP
T./NNP
Linsley/NNP
,/,
vice/NN
chairman/NN
of/IN
Eagle/NNP
,/,
will/MD
become/VB
vice/NN
chairman/NN
of/IN
Webster\/Eagle/NNP
./.
The/DT
board/NN
will/MD
be/VB
made/VBN
up/RP
of/IN
seven/CD
directors/NNS
of/IN
each/DT
holding/VBG
company/NN
./.
In/IN
an/DT
interview/NN
,/,
James/NNP
Smith/NNP
said/VBD
the/DT
banks/NNS
'/POS
``/``
markets/NNS
are/VBP
contiguous/JJ
and/CC
their/PRP$
business/NN
philosophies/NNS
are/VBP
similar/JJ
and/CC
conservative/JJ
./.
''/''
Nonperforming/VBG
loans/NNS
will/MD
make/VB
up/RP
only/RB
about/RB
0.5/CD
%/NN
of/IN
the/DT
combined/VBN
banks/NNS
'/POS
total/JJ
loans/NNS
outstanding/JJ
,/,
he/PRP
said/VBD
./.
At/IN
June/NNP
30/CD
,/,
Webster/NNP
,/,
which/WDT
owns/VBZ
First/NNP
Federal/NNP
Savings/NNP
&/CC
Loan/NNP
Association/NNP
of/IN
Waterbury/NNP
,/,
had/VBD
assets/NNS
of/IN
$/$
699/CD
million/CD
./.
Eagle/NNP
,/,
which/WDT
controls/VBZ
Bristol/NNP
Federal/NNP
Savings/NNP
Bank/NNP
and/CC
First/NNP
Federal/NNP
Savings/NNP
&/CC
Loan/NNP
Association/NNP
of/IN
Torrington/NNP
,/,
had/VBD
assets/NNS
of/IN
$/$
469.6/CD
million/CD
on/IN
that/DT
date/NN
./.
Guillermo/NNP
Ortiz/NNP
's/POS
Sept./NNP
15/CD
Americas/NNP
column/NN
,/,
``/``
Mexico/NNP
's/VBZ
Been/VBN
Bitten/VBN
by/IN
the/DT
Privatization/NN
Bug/NN
,/,
''/''
is/VBZ
a/DT
refreshingly/RB
clear/JJ
statement/NN
of/IN
his/PRP$
government/NN
's/POS
commitment/NN
to/TO
privatization/NN
,/,
and/CC
must/MD
be/VB
welcomed/VBN
as/IN
such/JJ
by/IN
all/DT
Americans/NNS
who/WP
wish/VBP
his/PRP$
country/NN
well/RB
./.
The/DT
Mexico-United/NNP
States/NNP
Institute/NNP
is/VBZ
glad/JJ
to/TO
see/VB
such/JJ
a/DT
high/JJ
official/NN
as/IN
Mexico/NNP
's/POS
undersecretary/NN
of/IN
finance/NN
view/VB
his/PRP$
country/NN
's/POS
reforms/NNS
``/``
in/IN
the/DT
context/NN
of/IN
a/DT
larger/JJR
,/,
world-wide/JJ
process/NN
''/''
of/IN
profound/JJ
change/NN
toward/IN
free-market/JJ
economics/NNS
,/,
especially/RB
in/IN
the/DT
statist/JJ
countries/NNS
./.
Having/VBG
said/VBD
that/DT
,/,
we/PRP
must/MD
caution/VB
against/IN
an/DT
apparent/JJ
tendency/NN
to/TO
overstate/VB
the/DT
case/NN
./.
It/PRP
is/VBZ
not/RB
quite/RB
true/JJ
,/,
for/IN
example/NN
,/,
that/IN
the/DT
Mexican/JJ
government/NN
has/VBZ
``/``
privatized/VBN
''/''
Mexicana/NNP
de/NNP
Aviacion/NNP
,/,
as/IN
Mr./NNP
Ortiz/NNP
claims/VBZ
./.
In/IN
the/DT
same/JJ
sentence/NN
he/PRP
contradicts/VBZ
himself/PRP
when/WRB
he/PRP
reports/VBZ
that/IN
the/DT
government/NN
still/RB
retains/VBZ
40/CD
%/NN
of/IN
the/DT
total/JJ
equity/NN
of/IN
the/DT
airline/NN
./.
How/WRB
can/MD
a/DT
company/NN
be/VB
considered/VBN
``/``
privatized/VBN
''/''
if/IN
the/DT
state/NN
is/VBZ
so/RB
heavily/RB
represented/VBN
in/IN
it/PRP
?/.
True/UH
,/,
the/DT
Mexican/JJ
government/NN
has/VBZ
granted/VBN
``/``
control/NN
''/''
over/IN
the/DT
airline/NN
to/TO
a/DT
new/JJ
private/JJ
consortium/NN
,/,
but/CC
its/PRP$
propensity/NN
to/TO
take/VB
back/RB
what/WP
it/PRP
gives/VBZ
is/VBZ
too/RB
well/RB
known/VBN
to/TO
permit/VB
one/PRP
to/TO
be/VB
sanguine/JJ
./.
Regrettably/RB
,/,
too/RB
,/,
Mr./NNP
Ortiz/NNP
resorts/VBZ
to/TO
the/DT
familiar/JJ
``/``
numbers/NNS
game/NN
''/''
when/WRB
he/PRP
boasts/VBZ
that/IN
``/``
fewer/JJR
than/IN
392/CD
state/NN
enterprises/NNS
the/DT
public/JJ
sector/NN
,/,
''/''
down/RB
from/IN
the/DT
``/``
1,155/CD
public/JJ
entities/NNS
that/WDT
existed/VBD
in/IN
1982/CD
./.
''/''
But/CC
the/DT
enterprises/NNS
still/RB
in/IN
state/NN
hands/NNS
include/VBP
the/DT
biggest/JJS
and/CC
most/RBS
economically/RB
powerful/JJ
ones/NNS
in/IN
Mexico/NNP
;/:
indeed/RB
,/,
they/PRP
virtually/RB
constitute/VBP
the/DT
economic/JJ
infrastructure/NN
./.
I/PRP
refer/VBP
essentially/RB
to/TO
petroleum/NN
,/,
electric/JJ
power/NN
,/,
banking/NN
and/CC
newsprint/NN
./.
Those/DT
enterprises/NNS
,/,
however/RB
,/,
are/VBP
not/RB
going/VBG
to/TO
be/VB
privatized/VBN
./.
They/PRP
are/VBP
officially/RB
considered/VBN
``/``
strategic/JJ
,/,
''/''
and/CC
their/PRP$
privatization/NN
is/VBZ
prohibited/VBN
by/IN
the/DT
Mexican/JJ
Constitution/NNP
./.
In/IN
language/NN
that/WDT
sidesteps/VBZ
the/DT
issue/NN
,/,
Mr./NNP
Ortiz/NNP
writes/VBZ
,/,
``/``
The/DT
divestiture/NN
of/IN
nonpriority/NN
and/CC
nonstrategic/JJ
public/JJ
enterprises/NNS
is/VBZ
an/DT
essential/JJ
element/NN
of/IN
President/NNP
Carlos/NNP
Salinas/NNP
's/POS
plan/NN
to/TO
modernize/VB
Mexico/NNP
's/POS
economy/NN
.../:
./.
''/''
Yet/RB
clearly/RB
,/,
modernization/NN
must/MD
embrace/VB
its/PRP$
key/JJ
industries/NNS
before/RB
it/PRP
can/MD
be/VB
said/VBD
to/TO
have/VB
caught/VBN
the/DT
``/``
privatization/NN
bug/NN
./.
''/''
The/DT
bottom/JJ
line/NN
,/,
however/RB
,/,
is/VBZ
not/RB
economic/JJ
but/CC
political/JJ
reform/NN
./.
A/DT
long/JJ
succession/NN
of/IN
Mexican/JJ
presidents/NNS
arbitrarily/RB
nationalized/VBD
whatever/WDT
industry/NN
they/PRP
took/VBD
a/DT
fancy/NN
to/TO
,/,
without/IN
having/VBG
to/TO
answer/VB
to/TO
the/DT
public/NN
./.
To/TO
guarantee/VB
that/IN
Mexicana/NNP
de/IN
Aviacion/NNP
and/CC
other/JJ
companies/NNS
will/MD
really/RB
be/VB
privatized/VBN
,/,
Mexico/NNP
needs/VBZ
a/DT
pluri-party/JJ
political/JJ
system/NN
that/WDT
will/MD
ensure/VB
democracy/NN
and/CC
hence/RB
accountability/NN
./.
Daniel/NNP
James/NNP
President/NNP
Mexico-United/NNP
States/NNP
Institute/NNP
Washington/NNP
The/DT
board/NN
of/IN
this/DT
Ponce/NNP
,/,
Puerto/NNP
Rico/NNP
concern/NN
voted/VBD
to/TO
suspend/VB
payment/NN
of/IN
its/PRP$
quarterly/NN
of/IN
11/CD
cents/NNS
a/DT
share/NN
for/IN
the/DT
third/JJ
quarter/NN
./.
The/DT
third-largest/JJ
thrift/NN
institution/NN
in/IN
Puerto/NNP
Rico/NNP
also/RB
said/VBD
it/PRP
expects/VBZ
a/DT
return/NN
to/TO
profitability/NN
in/IN
the/DT
third/JJ
quarter/NN
when/WRB
it/PRP
reports/VBZ
operating/NN
results/NNS
this/DT
week/NN
./.
Ponce/NNP
Federal/NNP
said/VBD
the/DT
dividend/NN
was/VBD
suspended/VBN
in/IN
anticipation/NN
of/IN
more/RBR
stringent/JJ
capital/NN
requirements/NNS
under/IN
the/DT
Financial/NNP
Institutions/NNP
Reform/NNP
,/,
Recovery/NNP
,/,
and/CC
Enforcement/NNP
Act/NNP
of/IN
1989/CD
./.
A/DT
labor-management/JJ
group/NN
is/VBZ
preparing/VBG
a/DT
revised/VBN
buy-out/NN
bid/NN
for/IN
United/NNP
Airlines/NNP
parent/NN
UAL/NNP
Corp./NNP
that/WDT
would/MD
transfer/VB
majority/NN
ownership/NN
to/TO
employees/NNS
while/IN
leaving/VBG
some/DT
stock/NN
in/IN
public/JJ
hands/NNS
,/,
according/VBG
to/TO
people/NNS
familiar/JJ
with/IN
the/DT
group/NN
./.
The/DT
group/NN
has/VBZ
been/VBN
discussing/VBG
a/DT
proposal/NN
valued/VBN
in/IN
a/DT
range/NN
of/IN
$/$
225/CD
to/TO
$/$
240/CD
a/DT
share/NN
,/,
or/CC
$/$
5.09/CD
billion/CD
to/TO
$/$
5.42/CD
billion/CD
./.
But/CC
to/TO
avoid/VB
the/DT
risk/NN
of/IN
rejection/NN
,/,
the/DT
group/NN
does/VBZ
n't/RB
plan/VB
to/TO
submit/VB
the/DT
plan/NN
formally/RB
at/IN
a/DT
UAL/NNP
board/NN
meeting/NN
today/NN
./.
Instead/RB
,/,
the/DT
group/NN
is/VBZ
raising/VBG
the/DT
proposal/NN
informally/RB
to/TO
try/VB
to/TO
test/VB
the/DT
board/NN
's/POS
reaction/NN
./.
People/NNS
familiar/JJ
with/IN
the/DT
company/NN
say/VBP
the/DT
board/NN
is/VBZ
n't/RB
likely/JJ
to/TO
give/VB
quick/JJ
approval/NN
to/TO
any/DT
offer/NN
substantially/RB
below/IN
the/DT
$/$
300-a-share/JJ
,/,
$/$
6.79/CD
billion/CD
buy-out/NN
bid/NN
that/WDT
collapsed/VBD
last/JJ
week/NN
after/IN
banks/NNS
would/MD
n't/RB
raise/VB
needed/VBN
loans/NNS
and/CC
after/IN
a/DT
key/JJ
partner/NN
,/,
British/NNP
Airways/NNP
PLC/NNP
,/,
dropped/VBD
out/RP
./.
In/IN
composite/JJ
trading/NN
Friday/NNP
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
UAL/NNP
closed/VBD
at/IN
$/$
168.50/CD
a/DT
share/NN
,/,
down/RB
$/$
21.625/CD
./.
But/CC
the/DT
pilots/NNS
union/NN
,/,
which/WDT
has/VBZ
been/VBN
pushing/VBG
for/IN
a/DT
takeover/NN
since/IN
1987/CD
,/,
appears/VBZ
to/TO
be/VB
pressing/VBG
ahead/RB
with/IN
the/DT
revised/VBN
bid/NN
to/TO
avoid/VB
further/JJ
loss/NN
of/IN
momentum/NN
even/RB
though/IN
it/PRP
has/VBZ
n't/RB
found/VBD
a/DT
partner/NN
to/TO
replace/VB
British/NNP
Air/NNP
./.
Although/IN
the/DT
bidding/NN
group/NN
has/VBZ
n't/RB
had/VBD
time/NN
to/TO
develop/VB
its/PRP$
latest/JJS
idea/NN
fully/RB
or/CC
to/TO
discuss/VB
it/PRP
with/IN
banks/NNS
,/,
it/PRP
believes/VBZ
bank/NN
financing/NN
could/MD
be/VB
obtained/VBN
./.
After/IN
the/DT
collapse/NN
of/IN
the/DT
last/JJ
effort/NN
,/,
the/DT
group/NN
does/VBZ
n't/RB
plan/VB
to/TO
make/VB
any/DT
formal/JJ
proposal/NN
without/IN
binding/JJ
commitments/NNS
from/IN
banks/NNS
covering/VBG
the/DT
entire/JJ
amount/NN
to/TO
be/VB
borrowed/VBN
./.
Under/IN
the/DT
type/NN
of/IN
transaction/NN
being/VBG
discussed/VBN
,/,
the/DT
pilot-management/JJ
group/NN
would/MD
borrow/VB
several/JJ
billion/CD
dollars/NNS
from/IN
banks/NNS
that/WDT
could/MD
then/RB
be/VB
used/VBN
to/TO
finance/VB
a/DT
cash/NN
payment/NN
to/TO
current/JJ
holders/NNS
./.
Those/DT
current/JJ
holders/NNS
would/MD
also/RB
receive/VB
minority/NN
interests/NNS
in/IN
the/DT
new/JJ
company/NN
./.
For/IN
example/NN
,/,
the/DT
group/NN
could/MD
offer/VB
$/$
200/CD
a/DT
share/NN
in/IN
cash/NN
plus/IN
stock/NN
valued/VBN
at/IN
$/$
30/CD
a/DT
share/NN
./.
UAL/NNP
currently/RB
has/VBZ
22.6/CD
million/CD
shares/NNS
,/,
fully/RB
diluted/VBN
./.
The/DT
new/JJ
structure/NN
would/MD
be/VB
similar/JJ
to/TO
a/DT
recapitalization/NN
in/IN
which/WDT
holders/NNS
get/VBP
a/DT
special/JJ
dividend/NN
yet/CC
retain/VBP
a/DT
controlling/JJ
ownership/NN
interest/NN
./.
The/DT
difference/NN
is/VBZ
that/IN
current/JJ
holders/NNS
would/MD
n't/RB
retain/VB
majority/NN
ownership/NN
or/CC
control/NN
./.
The/DT
failed/JJ
takeover/NN
would/MD
have/VB
given/VBN
UAL/NNP
employees/NNS
75/CD
%/NN
voting/NN
control/NN
of/IN
the/DT
nation/NN
's/POS
second-largest/JJ
airline/NN
,/,
with/IN
management/NN
getting/VBG
10/CD
%/NN
control/NN
and/CC
British/NNP
Air/NNP
15/CD
%/NN
./.
It/PRP
was/VBD
n't/RB
clear/JJ
how/WRB
the/DT
ownership/NN
would/MD
stack/VB
up/RP
under/IN
the/DT
new/JJ
plan/NN
,/,
but/CC
employees/NNS
would/MD
keep/VB
more/JJR
than/IN
50/CD
%/NN
./.
Management/NN
's/POS
total/NN
could/MD
be/VB
reduced/VBN
,/,
and/CC
the/DT
public/NN
could/MD
get/VB
more/JJR
than/IN
the/DT
15/CD
%/NN
control/NN
that/WDT
had/VBD
been/VBN
earmarked/VBN
for/IN
British/NNP
Air/NNP
./.
One/CD
option/NN
the/DT
board/NN
is/VBZ
likely/JJ
to/TO
consider/VB
today/NN
is/VBZ
some/DT
sort/NN
of/IN
cooling-off/JJ
period/NN
./.
Although/IN
the/DT
pilots/NNS
are/VBP
expected/VBN
to/TO
continue/VB
to/TO
pursue/VB
the/DT
bid/NN
,/,
UAL/NNP
Chairman/NNP
Stephen/NNP
Wolf/NNP
may/MD
be/VB
asked/VBN
to/TO
withdraw/VB
from/IN
the/DT
buy-out/NN
effort/NN
,/,
at/IN
least/JJS
temporarily/RB
,/,
and/CC
to/TO
return/VB
to/TO
running/VBG
the/DT
company/NN
full/JJ
time/NN
./.
The/DT
board/NN
could/MD
eventually/RB
come/VB
under/IN
some/DT
pressure/NN
to/TO
sell/VB
the/DT
company/NN
because/IN
its/PRP$
members/NNS
can/MD
be/VB
ousted/VBN
by/IN
a/DT
majority/NN
shareholder/NN
vote/NN
,/,
particularly/RB
since/IN
one-third/JJ
of/IN
UAL/NNP
stock/NN
is/VBZ
held/VBN
by/IN
takeover/NN
stock/NN
speculators/NNS
who/WP
favor/VBP
a/DT
sale/NN
./.
The/DT
labor-management/JJ
buy-out/NN
group/NN
plans/VBZ
to/TO
keep/VB
its/PRP$
offer/NN
on/IN
the/DT
table/NN
in/IN
an/DT
apparent/JJ
attempt/NN
to/TO
maintain/VB
its/PRP$
bargaining/NN
position/NN
with/IN
the/DT
board/NN
./.
However/RB
,/,
the/DT
only/JJ
outsider/NN
who/WP
has/VBZ
emerged/VBN
to/TO
lead/VB
such/JJ
a/DT
shareholder/NN
vote/NN
,/,
Los/NNP
Angeles/NNP
investor/NN
Marvin/NNP
Davis/NNP
,/,
who/WP
triggered/VBD
the/DT
buy-out/NN
with/IN
a/DT
$/$
5.4/CD
billion/CD
bid/NN
in/IN
early/JJ
August/NNP
,/,
is/VBZ
hanging/VBG
back/RB
--/:
apparently/RB
to/TO
avoid/VB
being/VBG
blamed/VBN
for/IN
contributing/VBG
to/TO
the/DT
deal/NN
's/POS
collapse/NN
./.
Three/CD
top/JJ
advisers/NNS
to/TO
Mr./NNP
Davis/NNP
visited/VBD
New/NNP
York/NNP
late/JJ
last/JJ
week/NN
,/,
at/IN
least/JJS
in/IN
part/NN
to/TO
confer/VB
with/IN
executives/NNS
at/IN
Citicorp/NNP
./.
Mr./NNP
Davis/NNP
had/VBD
paid/VBN
$/$
6/CD
million/CD
for/IN
Citicorp/NNP
's/POS
backing/NN
of/IN
his/PRP$
last/JJ
bid/NN
./.
But/CC
Citicorp/NNP
has/VBZ
lost/VBN
some/DT
credibility/NN
because/IN
it/PRP
also/RB
led/VBD
the/DT
unsuccessful/JJ
effort/NN
to/TO
gain/VB
bank/NN
loans/NNS
for/IN
the/DT
labor-management/JJ
group/NN
./.
On/IN
Friday/NNP
,/,
British/NNP
Air/NNP
issued/VBD
a/DT
statement/NN
saying/VBG
it/PRP
``/``
does/VBZ
not/RB
intend/VB
to/TO
participate/VB
in/IN
any/DT
new/JJ
deal/NN
for/IN
the/DT
acquisition/NN
of/IN
UAL/NNP
in/IN
the/DT
foreseeable/JJ
future/NN
./.
''/''
However/RB
,/,
several/JJ
people/NNS
said/VBD
that/IN
British/NNP
Air/NNP
might/MD
yet/RB
rejoin/VB
the/DT
bidding/NN
group/NN
and/CC
that/IN
the/DT
carrier/NN
made/VBD
the/DT
statement/NN
to/TO
answer/VB
questions/NNS
from/IN
British/JJ
regulators/NNS
about/IN
how/WRB
it/PRP
plans/VBZ
to/TO
use/VB
proceeds/NNS
of/IN
a/DT
securities/NNS
offering/NN
previously/RB
earmarked/VBN
for/IN
the/DT
UAL/NNP
buy-out/NN
./.
Also/RB
late/RB
last/JJ
week/NN
,/,
UAL/NNP
flight/NN
attendants/NNS
agreed/VBD
to/TO
participate/VB
with/IN
the/DT
pilots/NNS
in/IN
crafting/VBG
a/DT
revised/VBN
offer/NN
./.
But/CC
the/DT
machinists/NNS
union/NN
,/,
whose/WP$
opposition/NN
helped/VBD
scuttle/VB
the/DT
first/JJ
buy-out/NN
bid/NN
,/,
is/VBZ
likely/JJ
to/TO
favor/VB
a/DT
recapitalization/NN
with/IN
a/DT
friendly/JJ
third-party/JJ
investor/NN
./.
One/CD
advantage/NN
the/DT
buy-out/NN
group/NN
intends/VBZ
to/TO
press/VB
with/IN
the/DT
board/NN
is/VBZ
that/IN
pilots/NNS
have/VBP
agreed/VBN
to/TO
make/VB
$/$
200/CD
million/CD
in/IN
annual/JJ
cost/NN
concessions/NNS
to/TO
help/VB
finance/VB
a/DT
bid/NN
./.
Speculation/NN
has/VBZ
also/RB
arisen/VBN
that/IN
the/DT
UAL/NNP
executive/NN
most/RBS
closely/RB
identified/VBN
with/IN
the/DT
failure/NN
to/TO
gain/VB
bank/NN
financing/NN
,/,
chief/JJ
financial/JJ
officer/NN
John/NNP
Pope/NNP
,/,
may/MD
come/VB
under/IN
pressure/NN
to/TO
resign/VB
./.
However/RB
,/,
people/NNS
familiar/JJ
with/IN
the/DT
buy-out/NN
group/NN
said/VBD
Mr./NNP
Pope/NNP
's/POS
departure/NN
would/MD
weaken/VB
the/DT
airline/NN
's/POS
management/NN
at/IN
a/DT
critical/JJ
time/NN
./.
Despite/IN
the/DT
buy-out/NN
group/NN
's/POS
failure/NN
to/TO
obtain/VB
financing/NN
,/,
UAL/NNP
remains/VBZ
obligated/JJ
to/TO
pay/VB
$/$
26.7/CD
million/CD
in/IN
investment/NN
banking/NN
and/CC
legal/JJ
fees/NNS
to/TO
the/DT
group/NN
's/POS
advisers/NNS
,/,
Lazard/NNP
Freres/NNP
&/CC
Co./NNP
,/,
Salomon/NNP
Brothers/NNP
Inc./NNP
,/,
and/CC
Paul/NNP
Weiss/NNP
Rifkind/NNP
Wharton/NNP
&/CC
Garrison/NNP
./.
Whittle/NNP
Communications/NNP
Limited/NNP
Partnership/NNP
,/,
Knoxville/NNP
,/,
Tenn./NNP
,/,
will/MD
launch/VB
its/PRP$
first/JJ
media/NN
property/NN
targeting/VBG
Hispanic/JJ
women/NNS
./.
``/``
La/NNP
Familia/NNP
de/IN
Hoy/NNP
,/,
''/''
or/CC
``/``
Today/NNP
's/POS
Family/NNP
,/,
''/''
will/MD
debut/VB
this/DT
spring/NN
and/CC
will/MD
combine/VB
a/DT
national/JJ
bimonthly/JJ
magazine/NN
and/CC
TV/NN
programming/NN
./.
The/DT
television/NN
element/NN
of/IN
``/``
La/NNP
Familia/NNP
''/''
includes/VBZ
a/DT
series/NN
of/IN
two-minute/JJ
informational/JJ
features/NNS
to/TO
air/NN
seven/CD
days/NNS
a/DT
week/NN
on/IN
the/DT
Spanish-language/JJ
Univision/NNP
network/NN
,/,
a/DT
unit/NN
of/IN
Univision/NNP
Holdings/NNP
Inc./NNP
,/,
which/WDT
is/VBZ
80%-owned/CD
by/IN
Hallmark/NNP
Cards/NNP
Inc/NNP
./.
The/DT
features/NNS
will/MD
focus/VB
on/IN
``/``
parenting/NN
,/,
family/NN
health/NN
and/CC
nutrition/NN
,/,
and/CC
financial/JJ
management/NN
,/,
''/''
and/CC
will/MD
carry/VB
30/CD
seconds/NNS
of/IN
advertising/NN
./.
The/DT
magazines/NNS
,/,
also/RB
ad-supported/JJ
,/,
will/MD
be/VB
distributed/VBN
in/IN
more/JJR
than/IN
10,000/CD
doctors/NNS
'/POS
offices/NNS
,/,
clinics/NNS
,/,
and/CC
health/NN
centers/NNS
in/IN
Hispanic/JJ
and/CC
largely/RB
Hispanic/JJ
communities/NNS
./.
WEIRTON/NNP
STEEL/NNP
Corp./NNP
said/VBD
it/PRP
completed/VBD
a/DT
$/$
300/CD
million/CD
sale/NN
of/IN
10-year/JJ
notes/NNS
,/,
the/DT
final/JJ
step/NN
in/IN
the/DT
1984/CD
buy-out/NN
of/IN
the/DT
company/NN
from/IN
National/NNP
Steel/NNP
Corp/NNP
./.
The/DT
10/CD
7\/8/CD
%/NN
notes/NNS
were/VBD
priced/VBN
at/IN
99.5/CD
%/NN
to/TO
yield/VB
10.958/CD
%/NN
in/IN
an/DT
offering/NN
managed/VBD
by/IN
Bear/NNP
,/,
Stearns/NNP
&/CC
Co./NNP
,/,
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
and/CC
Lazard/NNP
Freres/NNP
&/CC
Co./NNP
,/,
the/DT
company/NN
said/VBD
./.
Weirton/NNP
,/,
of/IN
Weirton/NNP
,/,
W./NNP
Va./NNP
,/,
said/VBD
$/$
60.3/CD
million/CD
of/IN
the/DT
proceeds/NNS
were/VBD
used/VBN
to/TO
prepay/VB
the/DT
remaining/JJ
amounts/NNS
on/IN
the/DT
note/NN
outstanding/JJ
to/TO
National/NNP
Intergroup/NNP
Inc./NNP
,/,
the/DT
parent/NN
of/IN
National/NNP
Steel/NNP
./.
Remaining/JJ
proceeds/NNS
were/VBD
used/VBN
to/TO
pay/VB
other/JJ
debt/NN
and/CC
to/TO
finance/VB
the/DT
company/NN
's/POS
capital/NN
spending/NN
program/NN
./.
Lep/NNP
Group/NNP
PLC/NNP
of/IN
Britain/NNP
,/,
which/WDT
holds/VBZ
a/DT
62.42/CD
%/NN
stake/NN
in/IN
Profit/NNP
Systems/NNP
Inc./NNP
,/,
said/VBD
it/PRP
is/VBZ
considering/VBG
courses/NNS
of/IN
action/NN
that/WDT
could/MD
result/VB
in/IN
its/PRP$
having/VBG
``/``
active/JJ
control/NN
''/''
of/IN
the/DT
company/NN
./.
In/IN
a/DT
filing/NN
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
,/,
Lep/NNP
Group/NNP
said/VBD
a/DT
possible/JJ
course/NN
of/IN
action/NN
may/MD
include/VB
acquiring/VBG
some/DT
or/CC
all/DT
of/IN
the/DT
Profit/NNP
Systems/NNP
shares/NNS
it/PRP
does/VBZ
n't/RB
already/RB
own/VB
./.
It/PRP
noted/VBD
,/,
however/RB
,/,
that/IN
it/PRP
has/VBZ
n't/RB
determined/VBN
any/DT
specific/JJ
terms/NNS
of/IN
a/DT
possible/JJ
transaction/NN
./.
Lep/NNP
Group/NNP
and/CC
affiliates/NNS
currently/RB
control/VBP
3,513,072/CD
Profit/NNP
Systems/NNP
common/JJ
shares/NNS
,/,
or/CC
62.42/CD
%/NN
,/,
the/DT
filing/NN
said/VBD
./.
Profit/NNP
Systems/NNP
,/,
Valley/NNP
Stream/NNP
,/,
N.Y./NNP
,/,
is/VBZ
an/DT
air/NN
freight/NN
forwarding/NN
concern/NN
./.
U.S./NNP
official/JJ
reserve/NN
assets/NNS
rose/VBD
$/$
6.05/CD
billion/CD
in/IN
September/NNP
,/,
to/TO
$/$
68.42/CD
billion/CD
,/,
the/DT
Treasury/NNP
Department/NNP
said/VBD
./.
The/DT
gain/NN
compared/VBD
with/IN
a/DT
$/$
1.10/CD
billion/CD
decline/NN
in/IN
reserve/NN
assets/NNS
in/IN
August/NNP
to/TO
$/$
62.36/CD
billion/CD
,/,
the/DT
department/NN
said/VBD
./.
U.S./NNP
reserve/NN
assets/NNS
consist/VBP
of/IN
foreign/JJ
currencies/NNS
,/,
gold/NN
,/,
special/JJ
drawing/NN
rights/NNS
at/IN
the/DT
International/NNP
Monetary/NNP
Fund/NNP
and/CC
the/DT
U.S./NNP
reserve/NN
position/NN
--/:
its/PRP$
ability/NN
to/TO
draw/VB
foreign/JJ
currencies/NNS
--/:
at/IN
the/DT
IMF/NNP
./.
The/DT
nation/NN
's/POS
holdings/NNS
of/IN
foreign/JJ
currencies/NNS
increased/VBD
$/$
5.67/CD
billion/CD
in/IN
September/NNP
to/TO
$/$
39.08/CD
billion/CD
,/,
while/IN
its/PRP$
gold/NN
reserves/NNS
were/VBD
virtually/RB
unchanged/JJ
at/IN
$/$
11.07/CD
billion/CD
./.
U.S./NNP
holdings/NNS
of/IN
IMF/NNP
special/JJ
drawing/NN
rights/NNS
last/JJ
month/NN
rose/VBD
$/$
247/CD
million/CD
,/,
to/TO
$/$
9.49/CD
billion/CD
,/,
and/CC
its/PRP$
reserve/NN
position/NN
at/IN
the/DT
IMF/NNP
increased/VBD
$/$
142/CD
million/CD
,/,
to/TO
$/$
8.79/CD
billion/CD
./.
Alusuisse/NNP
of/IN
America/NNP
Inc./NNP
plans/VBZ
to/TO
sell/VB
its/PRP$
Consolidated/NNP
Aluminum/NNP
Corp./NNP
subsidiary/NN
as/IN
part/NN
of/IN
its/PRP$
strategy/NN
to/TO
focus/VB
more/RBR
on/IN
aluminum/NN
packaging/NN
in/IN
the/DT
U.S/NNP
./.
Alusuisse/NNP
,/,
of/IN
New/NNP
York/NNP
,/,
declined/VBD
to/TO
say/VB
how/WRB
much/JJ
it/PRP
expects/VBZ
to/TO
get/VB
for/IN
the/DT
unit/NN
;/:
the/DT
company/NN
has/VBZ
hired/VBN
First/NNP
Boston/NNP
Corp./NNP
to/TO
help/VB
identify/VB
bidders/NNS
./.
Alusuisse/NNP
is/VBZ
a/DT
subsidiary/NN
of/IN
Swiss/NNP
Aluminium/NNP
Ltd./NNP
,/,
a/DT
Zurich/NNP
,/,
Switzerland/NNP
,/,
producer/NN
of/IN
aluminum/NN
,/,
chemicals/NNS
and/CC
packaging/NN
products/NNS
./.
Consolidated/NNP
,/,
which/WDT
had/VBD
1988/CD
revenue/NN
of/IN
$/$
400/CD
million/CD
,/,
makes/VBZ
aluminum/NN
sheet/NN
and/CC
foil/NN
products/NNS
at/IN
its/PRP$
Hannibal/NNP
,/,
Ohio/NNP
,/,
and/CC
Jackson/NNP
,/,
Tenn./NNP
,/,
rolling/NN
mills/NNS
and/CC
recycles/VBZ
aluminum/NN
at/IN
a/DT
plant/NN
in/IN
Bens/NNP
Run/NNP
,/,
W.Va/NNP
./.
Manhattan/NNP
National/NNP
Corp./NNP
said/VBD
Michael/NNP
A./NNP
Conway/NNP
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
was/VBD
elected/VBN
chief/JJ
executive/NN
of/IN
the/DT
holding/VBG
company/NN
's/POS
two/CD
principal/JJ
insurance/NN
subsidiaries/NNS
./.
He/PRP
succeeds/VBZ
Paul/NNP
P./NNP
Aniskovich/NNP
Jr./NNP
,/,
who/WP
resigned/VBD
to/TO
pursue/VB
other/JJ
business/NN
interests/NNS
,/,
the/DT
company/NN
said/VBD
./.
Mr./NNP
Conway/NNP
,/,
42/CD
years/NNS
old/JJ
,/,
was/VBD
elected/VBN
chairman/NN
,/,
president/NN
and/CC
chief/JJ
executive/NN
of/IN
Manhattan/NNP
Life/NNP
Insurance/NNP
Co./NNP
and/CC
president/NN
and/CC
chief/JJ
executive/NN
of/IN
Manhattan/NNP
National/NNP
Life/NNP
Insurance/NNP
Co/NNP
./.
Harry/NNP
Rossi/NNP
,/,
69/CD
,/,
chairman/NN
of/IN
the/DT
holding/VBG
company/NN
,/,
also/RB
remains/VBZ
chairman/NN
of/IN
Manhattan/NNP
National/NNP
Life/NNP
Insurance/NNP
Co/NNP
./.
Mr./NNP
Conway/NNP
was/VBD
executive/JJ
vice/NN
president/NN
and/CC
chief/JJ
investment/NN
officer/NN
of/IN
Union/NNP
Central/NNP
Life/NNP
Insurance/NNP
Co./NNP
,/,
of/IN
Cincinnati/NNP
,/,
in/IN
1987/CD
,/,
when/WRB
Union/NNP
Central/NNP
bought/VBD
a/DT
54/CD
%/NN
interest/NN
in/IN
Manhattan/NNP
National/NNP
Corp/NNP
./.
He/PRP
resigned/VBD
as/IN
an/DT
officer/NN
of/IN
Central/NNP
Life/NNP
to/TO
accept/VB
the/DT
Manhattan/NNP
National/NNP
presidency/NN
./.
Daniel/NNP
J./NNP
Terra/NNP
,/,
a/DT
director/NN
of/IN
First/NNP
Illinois/NNP
Corp./NNP
,/,
said/VBD
that/IN
in/IN
August/NNP
he/PRP
reduced/VBD
his/PRP$
stake/NN
in/IN
First/NNP
Illinois/NNP
to/TO
26.48/CD
%/NN
of/IN
the/DT
common/JJ
shares/NNS
outstanding/JJ
./.
In/IN
a/DT
filing/NN
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
,/,
Mr./NNP
Terra/NNP
said/VBD
he/PRP
sold/VBD
263,684/CD
First/NNP
Illinois/NNP
common/JJ
shares/NNS
from/IN
Aug./NNP
9/CD
to/TO
Aug./NNP
28/CD
for/IN
$/$
9.9375/CD
to/TO
$/$
10.5625/CD
a/DT
share/NN
./.
As/IN
a/DT
result/NN
of/IN
the/DT
sales/NNS
he/PRP
holds/VBZ
6,727,042/CD
shares/NNS
./.
Mr./NNP
Terra/NNP
said/VBD
in/IN
the/DT
filing/NN
that/IN
he/PRP
sold/VBD
the/DT
stock/NN
to/TO
decrease/VB
his/PRP$
position/NN
in/IN
the/DT
Evanston/NNP
,/,
Ill./NNP
,/,
banking/NN
concern/NN
./.
He/PRP
may/MD
sell/VB
more/JJR
shares/NNS
in/IN
the/DT
open/JJ
market/NN
or/CC
in/IN
private/JJ
transactions/NNS
,/,
but/CC
would/MD
n't/RB
rule/VB
out/RP
changing/VBG
his/PRP$
intentions/NNS
and/CC
buying/VBG
shares/NNS
,/,
the/DT
filing/NN
said/VBD
./.
SciMed/NNP
Life/NNP
Systems/NNP
Inc./NNP
,/,
Minneapolis/NNP
,/,
said/VBD
a/DT
federal/JJ
appeals/NNS
court/NN
vacated/VBD
an/DT
earlier/JJR
summary/NN
judgment/NN
in/IN
its/PRP$
favor/NN
./.
A/DT
lower/JJR
court/NN
in/IN
St./NNP
Paul/NNP
had/VBD
ruled/VBN
in/IN
September/NNP
1988/CD
that/IN
a/DT
heart/NN
catheter/NN
SciMed/VBD
manufactures/VBZ
does/VBZ
n't/RB
infringe/VB
on/IN
a/DT
patent/NN
owned/VBN
by/IN
Advanced/NNP
Cardiovascular/NNP
Systems/NNP
,/,
a/DT
unit/NN
of/IN
Eli/NNP
Lilly/NNP
&/CC
Co/NNP
./.
SciMed/NNP
said/VBD
the/DT
appeals/NNS
court/NN
remanded/VBD
the/DT
case/NN
back/RB
to/TO
the/DT
district/NN
court/NN
for/IN
further/JJ
proceedings/NNS
./.
In/IN
national/JJ
over-the-counter/JJ
trading/NN
Friday/NNP
,/,
SciMed/NNP
shares/NNS
tumbled/VBD
$/$
2.75/CD
to/TO
$/$
43/CD
./.
SciMed/VBN
said/VBD
it/PRP
``/``
remains/VBZ
committed/JJ
''/''
both/DT
to/TO
the/DT
``/``
vigorous/JJ
defense/NN
''/''
of/IN
its/PRP$
position/NN
that/IN
the/DT
catheter/NN
does/VBZ
n't/RB
infringe/VB
the/DT
Lilly/NNP
unit/NN
's/POS
patent/NN
,/,
and/CC
to/TO
the/DT
pursuit/NN
of/IN
its/PRP$
own/JJ
counterclaims/NNS
,/,
which/WDT
allege/VBP
Lilly/NNP
engaged/VBD
in/IN
antitrust/JJ
violations/NNS
and/CC
other/JJ
wrongful/JJ
acts/NNS
./.
A/DT
REVISED/VBN
BID/NNP
FOR/IN
UAL/NNP
is/VBZ
being/VBG
prepared/VBN
by/IN
a/DT
labor-management/JJ
group/NN
,/,
sources/NNS
said/VBD
./.
The/DT
new/JJ
proposal/NN
,/,
which/WDT
would/MD
transfer/VB
majority/NN
ownership/NN
of/IN
United/NNP
Air/NNP
's/POS
parent/NN
to/TO
employees/NNS
and/CC
leave/VB
some/DT
stock/NN
in/IN
public/JJ
hands/NNS
,/,
would/MD
be/VB
valued/VBN
at/IN
$/$
225/CD
to/TO
$/$
240/CD
a/DT
share/NN
,/,
or/CC
as/RB
much/JJ
as/IN
$/$
5.42/CD
billion/CD
./.
But/CC
UAL/NNP
's/POS
board/NN
is/VBZ
n't/RB
expected/VBN
to/TO
give/VB
quick/JJ
approval/NN
to/TO
any/DT
offer/NN
substantially/RB
below/IN
the/DT
$/$
300-a-share/JJ
bid/NN
that/WDT
collapsed/VBD
recently/RB
./.
Takeover/NN
stock/NN
speculators/NNS
have/VBP
incurred/VBN
paper/NN
losses/NNS
of/IN
over/IN
$/$
700/CD
million/CD
from/IN
the/DT
failed/VBN
UAL/NNP
offer/NN
,/,
their/PRP$
worst/JJS
loss/NN
ever/RB
on/IN
a/DT
single/JJ
deal/NN
./.
Ford/NNP
and/CC
Saab/NNP
ended/VBD
talks/NNS
about/IN
a/DT
possible/JJ
alliance/NN
after/IN
Ford/NNP
concluded/VBD
that/IN
the/DT
cost/NN
to/TO
modernize/VB
Saab/NNP
's/POS
car/NN
operations/NNS
would/MD
outweigh/VB
the/DT
likely/JJ
return/NN
./.
The/DT
collapse/NN
Friday/NNP
prompted/VBD
speculation/NN
that/IN
Ford/NNP
would/MD
intensify/VB
its/PRP$
pursuit/NN
of/IN
Jaguar/NNP
,/,
which/WDT
is/VBZ
negotiating/VBG
a/DT
defensive/JJ
alliance/NN
with/IN
GM/NNP
./.
Stock/NN
prices/NNS
edged/VBD
up/RB
in/IN
quiet/JJ
trading/NN
Friday/NNP
./.
The/DT
Dow/NNP
Jones/NNP
industrials/NNS
rose/VBD
5.94/CD
,/,
to/TO
2689.14/CD
,/,
making/VBG
the/DT
gain/NN
for/IN
the/DT
week/NN
a/DT
record/NN
119.88/CD
points/NNS
,/,
or/CC
4.7/CD
%/NN
./.
Most/JJS
bond/NN
prices/NNS
fell/VBD
,/,
but/CC
junk/NN
bonds/NNS
and/CC
the/DT
dollar/NN
rose/VBD
./.
New/NNP
York/NNP
City/NNP
bonds/NNS
were/VBD
sold/VBN
off/RP
by/IN
many/JJ
investors/NNS
last/JJ
week/NN
amid/IN
political/JJ
and/CC
economic/JJ
uncertainty/NN
./.
More/JJR
banks/NNS
are/VBP
being/VBG
hurt/NN
by/IN
Arizona/NNP
's/POS
worsening/VBG
real-estate/NN
slump/NN
./.
First/NNP
Interstate/NNP
Bancorp/NNP
of/IN
Los/NNP
Angeles/NNP
said/VBD
Friday/NNP
it/PRP
expects/VBZ
a/DT
$/$
16/CD
million/CD
quarterly/JJ
loss/NN
,/,
citing/VBG
property-loan/JJ
losses/NNS
at/IN
its/PRP$
Arizona/NNP
unit/NN
./.
OPEC/NNP
's/POS
ability/NN
to/TO
produce/VB
more/JJR
oil/NN
than/IN
it/PRP
can/MD
sell/VB
is/VBZ
starting/VBG
to/TO
cast/VB
a/DT
shadow/NN
over/IN
world/NN
oil/NN
markets/NNS
./.
OPEC/NNP
officials/NNS
worry/VBP
that/IN
prices/NNS
could/MD
collapse/VB
a/DT
few/JJ
months/NNS
from/IN
now/RB
if/IN
the/DT
group/NN
does/VBZ
n't/RB
adopt/VB
new/JJ
quotas/NNS
./.
Saatchi/NNP
&/CC
Saatchi/NNP
has/VBZ
attracted/VBN
offers/NNS
for/IN
some/DT
of/IN
its/PRP$
advertising/NN
units/NNS
but/CC
has/VBZ
rejected/VBN
them/PRP
,/,
sources/NNS
said/VBD
./.
The/DT
proposals/NNS
,/,
from/IN
suitors/NNS
including/VBG
Interpublic/NNP
Group/NNP
,/,
come/VBP
as/IN
the/DT
London-based/JJ
ad/NN
giant/JJ
struggles/NNS
through/IN
its/PRP$
most/RBS
difficult/JJ
period/NN
ever/RB
./.
Qintex/NNP
Australia/NNP
suffered/VBD
another/DT
setback/NN
Friday/NNP
when/WRB
its/PRP$
Los/NNP
Angeles-based/JJ
affiliate/NN
filed/VBD
for/IN
Chapter/NNP
11/CD
protection/NN
./.
Qintex/NNP
's/POS
$/$
1.5/CD
billion/CD
pact/NN
to/TO
buy/VB
MGM\/UA/NNP
collapsed/VBD
recently/RB
./.
Kodak/NNP
entered/VBD
the/DT
high-definition/JJ
television/NN
market/NN
by/IN
unveiling/NN
a/DT
device/NN
that/WDT
can/MD
convert/VB
conventional/JJ
film/NN
into/IN
high-definition/JJ
video/NN
./.
A/DT
handful/NN
of/IN
small/JJ
U.S./NNP
firms/NNS
are/VBP
refusing/VBG
to/TO
cede/VB
the/DT
HDTV-screen/JJ
market/NN
to/TO
Japanese/JJ
manufacturers/NNS
./.
Freight/NN
rates/NNS
are/VBP
bottoming/VBG
out/RP
and/CC
starting/VBG
to/TO
rebound/VB
./.
Trucking/NN
,/,
shipping/NN
and/CC
air-freight/NN
firms/NNS
are/VBP
all/DT
planning/VBG
rate/NN
increases/NNS
,/,
reflecting/VBG
higher/JJR
costs/NNS
and/CC
tightened/VBN
demand/NN
./.
Texaco/NNP
has/VBZ
purchased/VBN
an/DT
oil-producing/JJ
company/NN
in/IN
Texas/NNP
for/IN
$/$
476.5/CD
million/CD
./.
It/PRP
is/VBZ
Texaco/NNP
's/POS
first/JJ
major/JJ
acquisition/NN
since/IN
the/DT
legal/JJ
battle/NN
with/IN
Pennzoil/NNP
began/VBD
over/RB
four/CD
years/NNS
ago/RB
./.
Winnebago/NNP
posted/VBD
a/DT
widened/VBN
quarterly/JJ
loss/NN
and/CC
slashed/VBD
its/PRP$
dividend/NN
in/IN
half/NN
,/,
reflecting/VBG
the/DT
deepening/VBG
slowdown/NN
in/IN
recreational/JJ
vehicle/NN
sales/NNS
./.
Markets/NNS
--/:
Stocks/NNS
:/:
Volume/NN
164,830,000/CD
shares/NNS
./.
Dow/NNP
Jones/NNP
industrials/VBZ
2689.14/CD
,/,
up/RB
5.94/CD
;/:
transportation/NN
1230.80/CD
,/,
off/RB
32.71/CD
;/:
utilities/NNS
215.48/CD
,/,
up/RB
0.06/CD
./.
Bonds/NNS
:/:
Shearson/NNP
Lehman/NNP
Hutton/NNP
Treasury/NNP
index/NN
3392.49/CD
,/,
off/RB
Commodities/NNS
:/:
Dow/NNP
Jones/NNP
futures/NNS
index/NN
129.62/CD
,/,
off/RB
0.51/CD
;/:
spot/NN
index/NN
131.34/CD
,/,
up/RB
0.88/CD
./.
Dollar/NN
:/:
142.43/CD
yen/NNS
,/,
up/RB
0.73/CD
;/:
1.8578/CD
marks/NNS
,/,
up/RB
0.0108/CD
./.
Inmac/NNP
Corp./NNP
,/,
a/DT
money-losing/JJ
direct/JJ
marketer/NN
of/IN
computer/NN
supplies/NNS
and/CC
accessories/NNS
,/,
said/VBD
directors/NNS
suspended/VBD
payment/NN
of/IN
its/PRP$
semiannual/JJ
dividend/NN
as/RB
too/RB
great/JJ
a/DT
drain/NN
on/IN
funds/NNS
./.
The/DT
company/NN
paid/VBD
five/CD
cents/NNS
a/DT
share/NN
in/IN
April/NNP
./.
The/DT
directors/NNS
'/POS
action/NN
,/,
taken/VBN
Oct./NNP
10/CD
but/CC
announced/VBD
Friday/NNP
,/,
had/VBD
little/JJ
or/CC
no/DT
effect/NN
on/IN
the/DT
company/NN
's/POS
stock/NN
,/,
which/WDT
stagnated/VBD
at/IN
$/$
4.75/CD
in/IN
light/JJ
over-the-counter/JJ
trading/NN
./.
Inmac/NNP
recently/RB
disclosed/VBD
a/DT
$/$
12.3/CD
million/CD
write-off/NN
related/VBN
to/TO
a/DT
corporate/JJ
restructuring/NN
that/WDT
resulted/VBD
in/IN
the/DT
company/NN
's/POS
posting/VBG
a/DT
$/$
6.4/CD
million/CD
net/JJ
loss/NN
for/IN
the/DT
year/NN
ended/VBN
July/NNP
29/CD
,/,
compared/VBN
with/IN
year-earlier/JJ
profit/NN
of/IN
$/$
9.7/CD
million/CD
,/,
or/CC
$/$
1.02/CD
a/DT
share/NN
./.
Sales/NNS
rose/VBD
12/CD
%/NN
to/TO
$/$
249.5/CD
million/CD
from/IN
$/$
222.8/CD
million/CD
./.
``/``
The/DT
board/NN
felt/VBD
that/IN
the/DT
continued/VBN
payment/NN
of/IN
our/PRP$
semiannual/JJ
dividend/NN
was/VBD
inconsistent/JJ
with/IN
recent/JJ
operating/NN
results/NNS
,/,
''/''
said/VBD
Kenneth/NNP
A./NNP
Eldred/NNP
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
./.
``/``
All/DT
our/PRP$
efforts/NNS
are/VBP
now/RB
focused/VBN
on/IN
improving/NN
earnings/NNS
to/TO
the/DT
point/NN
where/WRB
we/PRP
can/MD
fund/VB
additional/JJ
new-country/JJ
development/NN
,/,
continue/VB
to/TO
invest/VB
in/IN
the/DT
business/NN
and/CC
reinstate/VB
the/DT
dividend/NN
,/,
''/''
he/PRP
added/VBD
./.
The/DT
company/NN
offers/VBZ
more/JJR
than/IN
3,500/CD
parts/NNS
and/CC
supplies/NNS
directly/RB
to/TO
microcomputer/NN
and/CC
minicomputer/NN
users/NNS
through/IN
catalog/NN
sales/NNS
./.
The/DT
Food/NNP
and/CC
Drug/NNP
Administration/NNP
said/VBD
American/NNP
Home/NNP
Products/NNP
Corp./NNP
agreed/VBD
to/TO
recall/VB
certain/JJ
generic/JJ
drugs/NNS
that/WDT
were/VBD
produced/VBN
by/IN
its/PRP$
Quantum/NNP
Pharmics/NNP
unit/NN
in/IN
Amityville/NNP
,/,
N.Y/NNP
./.
Quantum/NNP
stopped/VBD
shipping/VBG
the/DT
drugs/NNS
last/JJ
month/NN
,/,
following/VBG
a/DT
federal/JJ
investigation/NN
regarding/VBG
information/NN
the/DT
company/NN
supplied/VBD
to/TO
obtain/VB
three/CD
drug/NN
approvals/NNS
./.
The/DT
FDA/NNP
requested/VBD
the/DT
recall/NN
of/IN
Quantum/NNP
's/POS
mioxidil/NN
tablets/NNS
,/,
chlorazepate/NN
dipotassium/NN
tablets/NNS
and/CC
meclofenamate/NN
sodium/NN
capsules/NNS
because/IN
,/,
it/PRP
said/VBD
,/,
the/DT
size/NN
of/IN
the/DT
production/NN
runs/NNS
submitted/VBN
for/IN
testing/NN
to/TO
gain/VB
FDA/NNP
approval/NN
was/VBD
in/IN
each/DT
case/NN
misrepresented/VBD
as/IN
much/RB
larger/JJR
than/IN
it/PRP
actually/RB
was/VBD
./.
American/NNP
Home/NNP
Products/NNP
,/,
based/VBN
in/IN
New/NNP
York/NNP
,/,
agreed/VBD
to/TO
recall/VB
four/CD
other/JJ
products/NNS
,/,
trazadone/NN
,/,
doxepin/NN
,/,
diazepam/NN
and/CC
lorazapam/NN
,/,
because/IN
of/IN
concerns/NNS
about/IN
data/NNS
submitted/VBN
in/IN
their/PRP$
original/JJ
approval/NN
applications/NNS
before/IN
the/DT
FDA/NNP
./.
No/DT
safety/NN
problems/NNS
with/IN
the/DT
products/NNS
are/VBP
known/VBN
,/,
the/DT
FDA/NNP
said/VBD
./.
An/DT
FDA/NNP
spokesperson/NN
said/VBD
the/DT
drugs/NNS
are/VBP
still/RB
available/JJ
under/IN
other/JJ
brand/NN
names/NNS
./.
Last/JJ
month/NN
,/,
American/NNP
Home/NNP
Products/NNP
said/VBD
it/PRP
was/VBD
suspending/VBG
production/NN
and/CC
distribution/NN
of/IN
all/DT
21/CD
of/IN
Quantum/NNP
's/POS
generic/JJ
drug/NN
products/NNS
pending/VBG
the/DT
completion/NN
of/IN
an/DT
exhaustive/JJ
internal/JJ
audit/NN
./.
It/PRP
also/RB
temporarily/RB
closed/VBD
Quantum/NNP
,/,
because/IN
of/IN
the/DT
internal/JJ
investigation/NN
,/,
as/RB
well/RB
as/IN
the/DT
FDA/NNP
's/POS
ongoing/JJ
inquiry/NN
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
American/NNP
Home/NNP
Products/NNP
rose/VBD
75/CD
cents/NNS
to/TO
$/$
105/CD
on/IN
Friday/NNP
./.
Lyondell/NNP
Petrochemical/NNP
Co./NNP
said/VBD
third-quarter/JJ
net/NN
income/NN
fell/VBD
54/CD
%/NN
,/,
to/TO
$/$
73/CD
million/CD
,/,
or/CC
91/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
160/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
Year-earlier/JJ
per-share/JJ
results/NNS
are/VBP
n't/RB
applicable/JJ
because/IN
the/DT
company/NN
went/VBD
public/NN
in/IN
January/NNP
./.
Revenue/NN
rose/VBD
7.7/CD
%/NN
to/TO
$/$
1.28/CD
billion/CD
from/IN
$/$
1.18/CD
billion/CD
./.
The/DT
petrochemical/NN
maker/NN
said/VBD
the/DT
biggest/JJS
reason/NN
earnings/NNS
declined/VBD
was/VBD
a/DT
loss/NN
of/IN
production/NN
time/NN
and/CC
the/DT
increased/VBN
costs/NNS
associated/VBN
with/IN
a/DT
temporary/JJ
maintenance/NN
closing/NN
and/CC
expansion/NN
of/IN
an/DT
olefins/NNS
plant/NN
./.
Like/IN
other/JJ
refiners/NNS
,/,
Lyondell/NNP
's/POS
margins/NNS
for/IN
chemicals/NNS
and/CC
gasoline/NN
were/VBD
narrower/JJR
./.
While/IN
the/DT
company/NN
said/VBD
chemical/NN
margins/NNS
continued/VBD
to/TO
worsen/VB
this/DT
quarter/NN
,/,
costs/NNS
will/MD
be/VB
lower/JJR
because/IN
the/DT
maintenance/NN
and/CC
expansions/NNS
are/VBP
complete/JJ
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/NN
trading/NN
Friday/NNP
,/,
Lyondell/NNP
was/VBD
unchanged/JJ
at/IN
$/$
18.50/CD
a/DT
share/NN
./.
Four/CD
former/JJ
Cordis/NNP
Corp./NNP
officials/NNS
were/VBD
acquitted/VBN
of/IN
federal/JJ
charges/NNS
related/VBN
to/TO
the/DT
Miami-based/JJ
company/NN
's/POS
sale/NN
of/IN
pacemakers/NNS
,/,
including/VBG
conspiracy/NN
to/TO
hide/VB
pacemaker/NN
defects/NNS
./.
Jurors/NNP
in/IN
U.S./NNP
District/NNP
Court/NNP
in/IN
Miami/NNP
cleared/VBD
Harold/NNP
Hershhenson/NNP
,/,
a/DT
former/JJ
executive/JJ
vice/NN
president/NN
;/:
John/NNP
Pagones/NNP
,/,
a/DT
former/JJ
vice/NN
president/NN
;/:
and/CC
Stephen/NNP
Vadas/NNP
and/CC
Dean/NNP
Ciporkin/NNP
,/,
who/WP
had/VBD
been/VBN
engineers/NNS
with/IN
Cordis/NNP
./.
Earlier/RBR
this/DT
year/NN
,/,
Cordis/NNP
,/,
a/DT
maker/NN
of/IN
medical/JJ
devices/NNS
,/,
agreed/VBD
to/TO
plead/VB
guilty/JJ
to/TO
felony/NN
and/CC
misdemeanor/NN
charges/NNS
related/VBN
to/TO
the/DT
pacemakers/NNS
and/CC
to/TO
pay/VB
the/DT
government/NN
about/RB
$/$
5.7/CD
million/CD
in/IN
fines/NNS
and/CC
other/JJ
costs/NNS
./.
Cordis/NNP
sold/VBD
its/PRP$
pacemaker/NN
operations/NNS
two/CD
years/NNS
ago/RB
to/TO
Telectronics/NNP
Holding/NNP
Ltd./NNP
of/IN
Australia/NNP
./.
PAPERS/NNS
:/:
Management/NN
and/CC
unions/NNS
representing/VBG
2,400/CD
employees/NNS
at/IN
Torstar/NNP
Corp./NNP
's/POS
Toronto/NNP
Star/NNP
reached/VBD
a/DT
tentative/JJ
contract/NN
agreement/NN
Friday/NNP
,/,
averting/VBG
a/DT
strike/NN
by/IN
most/JJS
employees/NNS
of/IN
Canada/NNP
's/POS
largest/JJS
daily/JJ
newspaper/NN
./.
Members/NNS
of/IN
the/DT
largest/JJS
union/NN
,/,
representing/VBG
1,700/CD
workers/NNS
,/,
voted/VBD
in/IN
favor/NN
of/IN
the/DT
pact/NN
yesterday/NN
./.
Four/CD
other/JJ
unions/NNS
have/VBP
yet/RB
to/TO
vote/VB
,/,
but/CC
their/PRP$
leadership/NN
also/RB
recommended/VBD
approval/NN
./.
The/DT
pact/NN
proposes/VBZ
a/DT
2/CD
1\/2-year/JJ
contract/NN
with/IN
a/DT
raise/NN
of/IN
8/CD
%/NN
in/IN
the/DT
first/JJ
year/NN
,/,
7/CD
%/NN
in/IN
the/DT
second/JJ
and/CC
4/CD
%/NN
for/IN
the/DT
final/JJ
six/CD
months/NNS
./.
Amgen/NNP
Inc./NNP
said/VBD
its/PRP$
second-quarter/JJ
earnings/NNS
increased/VBD
more/RBR
than/IN
tenfold/RB
to/TO
$/$
3.9/CD
million/CD
,/,
or/CC
22/CD
cents/NNS
a/DT
share/NN
,/,
due/JJ
to/TO
increased/VBN
sales/NNS
of/IN
the/DT
company/NN
's/POS
new/JJ
antianemia/JJ
drug/NN
for/IN
kidney/NN
patients/NNS
./.
The/DT
Thousand/NNP
Oaks/NNP
,/,
Calif.-based/JJ
biotechnology/NN
company/NN
reported/VBD
a/DT
97/CD
%/NN
increase/NN
in/IN
revenue/NN
to/TO
$/$
42.5/CD
million/CD
for/IN
the/DT
quarter/NN
ended/VBN
Sept./NNP
30/CD
./.
In/IN
the/DT
year-ago/JJ
period/NN
,/,
Amgen/NNP
reported/VBD
net/JJ
income/NN
of/IN
$/$
320,000/CD
,/,
or/CC
two/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
21.5/CD
million/CD
./.
For/IN
the/DT
six/CD
months/NNS
,/,
the/DT
company/NN
reported/VBD
a/DT
more/JJR
than/IN
sixfold/JJ
increase/NN
in/IN
earnings/NNS
to/TO
$/$
4.7/CD
million/CD
,/,
or/CC
26/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
625,000/CD
,/,
or/CC
four/CD
cents/NNS
a/DT
share/NN
a/DT
year/NN
ago/RB
./.
Revenue/NN
rose/VBD
77/CD
%/NN
to/TO
$/$
72.6/CD
million/CD
,/,
from/IN
last/JJ
year/NN
's/POS
$/$
41/CD
million/CD
./.
LEBANESE/JJ
LAWMAKERS/NNS
APPROVED/VBD
a/DT
peace/NN
plan/NN
but/CC
Aoun/NNP
rejected/VBD
it/PRP
./.
Lebanon/NNP
's/POS
Parliament/NNP
passed/VBD
the/DT
power-sharing/JJ
accord/NN
to/TO
end/VB
the/DT
country/NN
's/POS
14-year-old/JJ
conflict/NN
,/,
but/CC
the/DT
Christian/JJ
military/JJ
leader/NN
wad/VB
the/DT
plan/NN
was/VBD
``/``
full/JJ
of/IN
ambiguities/NNS
./.
''/''
The/DT
Arab/NNP
League-sponsored/JJ
pact/NN
,/,
drafted/VBN
during/IN
three/CD
weeks/NNS
of/IN
talks/NNS
at/IN
the/DT
Saudi/JJ
Arabian/JJ
resort/NN
of/IN
Taif/NNP
,/,
includes/VBZ
Syrian/JJ
proposals/NNS
for/IN
at/IN
least/JJS
a/DT
partial/JJ
troop/NN
pullout/NN
from/IN
Lebanon/NNP
,/,
and/CC
guarantees/VBZ
an/DT
equal/JJ
number/NN
of/IN
seats/NNS
for/IN
Moslems/NNS
and/CC
Christians/NNS
in/IN
the/DT
Parliament/NNP
./.
The/DT
rejection/NN
by/IN
Aoun/NNP
,/,
who/WP
has/VBZ
demanded/VBN
a/DT
total/JJ
and/CC
immediate/JJ
pull-out/NN
of/IN
Damascus/NNP
's/POS
33,000/CD
troops/NNS
,/,
puts/VBZ
the/DT
future/NN
of/IN
the/DT
agreement/NN
in/IN
doubt/NN
./.
NORTHERN/NNP
CALIFORNIA/NNP
BRACED/NNP
for/IN
earthquake-related/JJ
traffic/NN
jams/NNS
./.
As/IN
rescuers/NNS
pressed/VBD
their/PRP$
efforts/NNS
after/IN
finding/VBG
a/DT
survivor/NN
in/IN
a/DT
collapsed/VBN
freeway/NN
,/,
the/DT
San/NNP
Francisco/NNP
Bay/NNP
area/NN
girded/VBD
for/IN
hundreds/NNS
of/IN
thousands/NNS
of/IN
commuters/NNS
seeking/VBG
to/TO
avoid/VB
routes/NNS
ravaged/VBN
by/IN
last/JJ
Tuesday/NNP
's/POS
tremor/NN
./.
In/IN
Oakland/NNP
,/,
officials/NNS
said/VBD
the/DT
57-year-old/JJ
longshoreman/NN
who/WP
spent/VBD
four/CD
days/NNS
entombed/VBN
in/IN
rubble/NN
was/VBD
in/IN
critical/JJ
condition/NN
with/IN
slight/JJ
improvement/NN
./.
Estimates/NNS
of/IN
damage/NN
in/IN
the/DT
area/NN
,/,
visited/VBN
Friday/NNP
by/IN
Bush/NNP
,/,
topped/VBD
$/$
5/CD
billion/CD
./.
The/DT
baseball/NN
commissioner/NN
announced/VBD
that/IN
the/DT
third/JJ
game/NN
of/IN
the/DT
World/NNP
Series/NNP
between/IN
the/DT
Giants/NNP
and/CC
the/DT
Athletics/NNP
would/MD
n't/RB
resume/VB
until/IN
Friday/NNP
./.
THE/DT
U.S/NNP
./.
IS/VBZ
REQUIRED/NNP
to/TO
notify/VB
foreign/JJ
dictators/NNS
of/IN
certain/JJ
coup/NN
plans/NNS
./.
Under/IN
guidelines/NNS
included/VBN
in/IN
an/DT
exchange/NN
of/IN
letters/NNS
between/IN
the/DT
Reagan/NNP
administration/NN
and/CC
the/DT
Senate/NNP
Intelligence/NNP
panel/NN
last/JJ
year/NN
,/,
the/DT
U.S./NNP
must/MD
inform/VB
foreign/JJ
dictators/NNS
of/IN
plans/NNS
likely/JJ
to/TO
endanger/VB
their/PRP$
lives/NNS
./.
The/DT
existence/NN
of/IN
the/DT
policy/NN
became/VBD
known/VBN
after/IN
Bush/NNP
disclosed/VBD
it/PRP
to/TO
seven/CD
GOP/NNP
senators/NNS
last/JJ
week/NN
,/,
citing/VBG
the/DT
plan/NN
as/IN
an/DT
example/NN
of/IN
congressional/JJ
requirements/NNS
the/DT
administration/NN
contends/VBZ
contribute/VBP
to/TO
the/DT
failure/NN
of/IN
covert/JJ
actions/NNS
,/,
officials/NNS
said/VBD
./.
Bush/NNP
conceded/VBD
that/IN
the/DT
requirement/NN
did/VBD
n't/RB
affect/VB
a/DT
decision/NN
to/TO
lend/VB
only/JJ
minor/JJ
support/NN
to/TO
this/DT
month/NN
's/POS
failed/JJ
effort/NN
to/TO
oust/VB
Panama/NNP
's/POS
Noriega/NNP
,/,
aides/NNS
said/VBD
./.
The/DT
shuttle/NN
Atlantis/NNP
's/POS
crew/NN
prepared/VBD
to/TO
return/VB
to/TO
Earth/NNP
today/NN
several/JJ
hours/NNS
earlier/RBR
than/IN
planned/VBN
to/TO
avoid/VB
high/JJ
winds/NNS
forecast/VBN
at/IN
the/DT
landing/NN
site/NN
at/IN
Edwards/NNP
Air/NNP
Force/NNP
Base/NNP
,/,
Calif/NNP
./.
The/DT
five/CD
astronauts/NNS
,/,
who/WP
stowed/VBD
gear/NN
and/CC
tested/VBD
the/DT
spacecraft/NN
's/POS
steering/NN
,/,
said/VBD
they/PRP
were/VBD
unconcerned/JJ
about/IN
the/DT
touchy/JJ
weather/NN
expected/VBN
in/IN
the/DT
Mojave/NNP
Desert/NNP
./.
Commonwealth/NNP
leaders/NNS
issued/VBD
a/DT
declaration/NN
giving/VBG
South/NNP
Africa/NNP
six/CD
months/NNS
to/TO
deliver/VB
on/IN
pledges/NNS
to/TO
ease/VB
apartheid/NN
or/CC
face/VB
new/JJ
reprisals/NNS
./.
The/DT
49-nation/JJ
organization/NN
,/,
meeting/VBG
in/IN
Malaysia/NNP
,/,
called/VBD
for/IN
tighter/JJR
financial/JJ
pressure/NN
immediately/RB
./.
Britain/NNP
's/POS
Prime/NNP
Minister/NNP
Thatcher/NNP
alone/RB
dissented/VBD
./.
East/NNP
Germany/NNP
's/POS
leadership/NN
vowed/VBD
swift/JJ
action/NN
to/TO
ease/VB
travel/VB
to/TO
the/DT
West/NN
./.
Despite/IN
the/DT
pledge/NN
by/IN
the/DT
Communist/NNP
rulers/NNS
,/,
tens/NNS
of/IN
thousands/NNS
of/IN
people/NNS
across/IN
the/DT
country/NN
staged/VBD
marches/NNS
over/IN
the/DT
weekend/NN
to/TO
demand/VB
democratic/JJ
freedoms/NNS
./.
In/IN
Leipzig/NNP
,/,
more/JJR
than/IN
500/CD
people/NNS
met/VBD
with/IN
local/JJ
party/NN
officials/NNS
to/TO
discuss/VB
internal/JJ
changes/NNS
./.
The/DT
Senate/NNP
convicted/VBD
federal/JJ
Judge/NNP
Alcee/NNP
Hastings/NNP
of/IN
Miami/NNP
of/IN
eight/CD
impeachment/NN
articles/NNS
,/,
removing/VBG
him/PRP
from/IN
the/DT
bench/NN
./.
The/DT
chamber/NN
voted/VBD
69-26/CD
Friday/NNP
to/TO
convict/VB
the/DT
judge/NN
of/IN
perjury/NN
and/CC
bribery/NN
conspiracy/NN
./.
It/PRP
marked/VBD
the/DT
first/JJ
time/NN
a/DT
U.S./NNP
official/NN
was/VBD
impeached/VBN
on/IN
charges/NNS
of/IN
which/WDT
a/DT
jury/NN
had/VBD
acquitted/VBN
him/PRP
./.
Rep./NNP
Garcia/NNP
and/CC
his/PRP$
wife/NN
were/VBD
found/VBN
guilty/JJ
by/IN
a/DT
federal/JJ
jury/NN
in/IN
New/NNP
York/NNP
of/IN
extorting/VBG
$/$
76,000/CD
from/IN
Wedtech/NNP
Corp./NNP
in/IN
return/NN
for/IN
official/JJ
acts/NNS
by/IN
the/DT
New/NNP
York/NNP
Democrat/NNP
./.
The/DT
jury/NN
also/RB
convicted/VBD
them/PRP
of/IN
extortion/NN
in/IN
obtaining/VBG
a/DT
$/$
20,000/CD
interest-free/JJ
loan/NN
from/IN
an/DT
officer/NN
of/IN
the/DT
defunct/JJ
defense/NN
contractor/NN
./.
Authorities/NNP
in/IN
Honduras/NNP
launched/VBD
an/DT
investigation/NN
into/IN
the/DT
cause/NN
of/IN
Saturday/NNP
's/POS
crash/NN
of/IN
a/DT
Honduran/JJ
jetliner/NN
that/WDT
killed/VBD
132/CD
of/IN
the/DT
146/CD
people/NNS
aboard/RB
./.
The/DT
Boeing/NNP
727/CD
,/,
en/IN
route/NN
to/TO
Honduras/NNP
from/IN
Costa/NNP
Rica/NNP
via/IN
Nicaragua/NNP
,/,
smashed/VBD
into/IN
the/DT
hills/NNS
outside/IN
Tegucigalpa/NNP
as/IN
it/PRP
approached/VBD
the/DT
capital/NN
's/POS
airport/NN
in/IN
high/JJ
winds/NNS
and/CC
low/JJ
clouds/NNS
./.
The/DT
U.S./NNP
and/CC
Israel/NNP
have/VBP
been/VBN
holding/VBG
what/WP
an/DT
aide/NN
to/TO
Prime/NNP
Minister/NNP
Shamir/NNP
called/VBD
intense/JJ
telephone/NN
negotiations/NNS
in/IN
an/DT
effort/NN
to/TO
bridge/VB
differences/NNS
over/IN
Mideast/JJ
peace/NN
moves/NNS
./.
The/DT
Labor/NNP
Party/NNP
,/,
meanwhile/RB
,/,
threatened/VBD
to/TO
support/VB
a/DT
parliamentary/JJ
motion/NN
to/TO
topple/VB
the/DT
coalition/NN
unless/IN
Shamir/NNP
showed/VBD
flexibility/NN
on/IN
Arab-Israeli/JJ
talks/NNS
./.
Nicaragua/NNP
's/POS
Defense/NNP
Ministry/NNP
said/VBD
a/DT
group/NN
of/IN
Contra/NNP
rebels/NNS
ambushed/VBD
two/CD
trucks/NNS
carrying/VBG
troops/NNS
in/IN
northern/JJ
Nicaragua/NNP
,/,
killing/VBG
18/CD
of/IN
the/DT
soldiers/NNS
./.
The/DT
incident/NN
occurred/VBN
Saturday/NNP
night/NN
./.
The/DT
Sandinista/NNP
government/NN
and/CC
the/DT
U.S.-backed/JJ
insurgents/NNS
agreed/VBD
in/IN
March/NNP
to/TO
suspend/VB
offensive/JJ
operations/NNS
,/,
but/CC
there/EX
has/VBZ
been/VBN
sporadic/JJ
fighting/NN
./.
Scientists/NNS
have/VBP
isolated/VBN
a/DT
molecule/NN
that/WDT
may/MD
hold/VB
potential/NN
as/IN
a/DT
treatment/NN
for/IN
disruptions/NNS
of/IN
the/DT
immune/JJ
system/NN
,/,
ranging/VBG
from/IN
organ-transplant/JJ
rejection/NN
,/,
to/TO
allergies/NNS
and/CC
asthma/NN
,/,
Immunex/NNP
Corp./NNP
said/VBD
./.
The/DT
molecule/NN
is/VBZ
the/DT
mouse/NN
version/NN
of/IN
a/DT
protein/NN
called/VBD
the/DT
interleukin-4/NN
receptor/NN
,/,
which/WDT
directs/VBZ
the/DT
growth/NN
and/CC
function/NN
of/IN
white/JJ
blood/NN
cells/NNS
./.
Died/VBN
:/:
Alfred/NNP
Hayes/NNP
,/,
79/CD
,/,
former/JJ
president/NN
of/IN
the/DT
Federal/NNP
Reserve/NNP
Bank/NNP
of/IN
New/NNP
York/NNP
,/,
Saturday/NNP
,/,
in/IN
New/NNP
Canaan/NNP
,/,
Conn/NNP
./.
Contel/NNP
Corp./NNP
said/VBD
third-quarter/JJ
net/JJ
income/NN
increased/VBD
16/CD
%/NN
to/TO
$/$
72/CD
million/CD
,/,
or/CC
45/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
62/CD
million/CD
,/,
or/CC
39/CD
cents/NNS
a/DT
share/NN
,/,
as/IN
a/DT
result/NN
of/IN
strong/JJ
growth/NN
in/IN
telephone-access/JJ
lines/NNS
and/CC
long-distance/JJ
minutes/NNS
of/IN
use/NN
./.
The/DT
telecommunications/NNS
company/NN
's/POS
results/NNS
included/VBD
a/DT
one-time/JJ
gain/NN
of/IN
$/$
4/CD
million/CD
,/,
or/CC
two/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
the/DT
sale/NN
of/IN
Contel/NNP
Credit/NNP
,/,
a/DT
leasing/NN
and/CC
financial-services/JJ
subsidiary/NN
./.
Revenue/NN
rose/VBD
8.3/CD
%/NN
to/TO
$/$
780/CD
million/CD
from/IN
$/$
720/CD
million/CD
./.
Telephone-operations/NNS
quarterly/JJ
profit/NN
increased/VBN
9/CD
%/NN
to/TO
$/$
84/CD
million/CD
from/IN
$/$
77/CD
million/CD
,/,
while/IN
federal-systems/JJ
earnings/NNS
declined/VBD
33/CD
%/NN
to/TO
$/$
4/CD
million/CD
from/IN
$/$
6/CD
million/CD
./.
Information/NN
systems/NNS
posted/VBD
a/DT
loss/NN
of/IN
$/$
8/CD
million/CD
,/,
compared/VBN
with/IN
a/DT
loss/NN
of/IN
$/$
9/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
Customer-access/NN
lines/NNS
increased/VBD
at/IN
an/DT
annualized/VBN
rate/NN
of/IN
about/RB
4/CD
%/NN
and/CC
minutes/NNS
of/IN
long-distance/JJ
use/NN
rose/VBD
about/RB
12/CD
%/NN
./.
A/DT
10/CD
%/NN
gain/NN
in/IN
operating/NN
profit/NN
in/IN
the/DT
quarter/NN
was/VBD
offset/VBN
by/IN
a/DT
21/CD
%/NN
boost/NN
in/IN
interest/NN
expense/NN
,/,
reflecting/VBG
higher/JJR
consolidated/JJ
borrowings/NNS
and/CC
interest/NN
rates/NNS
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Contel/NNP
closed/VBD
at/IN
$/$
33.75/CD
a/DT
share/NN
,/,
down/RB
.50/CD
cents/NNS
./.
In/IN
East/NNP
Germany/NNP
,/,
where/WRB
humor/NN
has/VBZ
long/RB
been/VBN
the/DT
only/JJ
way/NN
to/TO
express/VB
political/JJ
criticism/NN
,/,
they/PRP
're/VBP
not/RB
laughing/VBG
about/IN
their/PRP$
new/JJ
leader/NN
Egon/NNP
Krenz/NNP
./.
Mr./NNP
Krenz/NNP
is/VBZ
such/JJ
a/DT
contradictory/JJ
figure/NN
that/IN
nobody/NN
has/VBZ
even/RB
come/VBN
up/RP
with/IN
any/DT
good/JJ
jokes/NNS
about/IN
him/PRP
./.
``/``
You/PRP
have/VBP
to/TO
have/VB
clear/JJ
feelings/NNS
about/IN
someone/NN
before/RB
you/PRP
can/MD
make/VB
jokes/NNS
,/,
''/''
says/VBZ
an/DT
East/NNP
German/NNP
mother/NN
of/IN
two/CD
who/WP
loves/VBZ
swapping/VBG
political/JJ
barbs/NNS
with/IN
her/PRP$
friends/NNS
./.
``/``
With/IN
Krenz/NNP
,/,
we/PRP
just/RB
do/VBP
n't/RB
know/VB
what/WP
to/TO
expect/VB
./.
''/''
Mr./NNP
Krenz/NNP
does/VBZ
n't/RB
seem/VB
to/TO
be/VB
the/DT
knee-jerk/JJ
hardliner/NN
many/RB
initially/RB
thought/VBD
he/PRP
was/VBD
when/WRB
the/DT
52-year-old/JJ
Politburo/NNP
member/NN
was/VBD
selected/VBN
last/JJ
week/NN
to/TO
succeed/VB
Erich/NNP
Honecker/NNP
./.
But/CC
he/PRP
does/VBZ
n't/RB
appear/VB
to/TO
be/VB
ready/JJ
to/TO
make/VB
broad/JJ
changes/NNS
either/RB
./.
According/VBG
to/TO
East/NNP
Germany/NNP
's/POS
ADN/NNP
news/NN
agency/NN
,/,
Mr./NNP
Krenz/NNP
spoke/VBD
to/TO
Soviet/JJ
leader/NN
Mikhail/NNP
Gorbachev/NNP
by/IN
telephone/NN
over/IN
the/DT
weekend/NN
and/CC
acknowledged/VBD
East/NNP
Germany/NNP
could/MD
learn/VB
from/IN
Moscow/NNP
's/POS
glasnost/NN
policies/NNS
./.
Already/RB
last/JJ
week/NN
,/,
Mr./NNP
Krenz/NNP
started/VBD
overhauling/VBG
East/NNP
Germany/NNP
's/VBZ
heavily/RB
censored/VBN
and/CC
notoriously/RB
boring/VBG
news/NN
media/NNS
./.
On/IN
Thursday/NNP
,/,
a/DT
day/NN
after/RB
he/PRP
took/VBD
office/NN
,/,
East/JJ
German/JJ
television/NN
broke/VBD
into/IN
regular/JJ
programming/NN
to/TO
launch/VB
a/DT
talk/NN
show/NN
in/IN
which/WDT
viewers/NNS
call/VBP
in/RP
questions/NNS
for/IN
a/DT
panel/NN
of/IN
officials/NNS
to/TO
answer/VB
./.
The/DT
regular/JJ
nightly/JJ
news/NN
program/NN
and/CC
daily/JJ
newspapers/NNS
are/VBP
also/RB
getting/VBG
a/DT
visible/JJ
injection/NN
of/IN
Soviet-style/JJ
glasnost/NN
./.
``/``
It/PRP
was/VBD
quite/RB
a/DT
shock/NN
,/,
''/''
says/VBZ
a/DT
43-year-old/JJ
East/JJ
German/JJ
shopkeeper/NN
./.
``/``
For/IN
the/DT
first/JJ
time/NN
in/IN
my/PRP$
life/NN
,/,
I/PRP
was/VBD
n't/RB
sure/JJ
whether/IN
I/PRP
was/VBD
listening/VBG
to/TO
our/PRP$
news/NN
or/CC
West/JJ
German/JJ
television/NN
./.
''/''
Other/JJ
changes/NNS
,/,
including/VBG
easing/VBG
restrictions/NNS
on/IN
travel/NN
for/IN
East/NNS
Germans/NNS
,/,
are/VBP
expected/VBN
./.
But/CC
whether/IN
such/JJ
moves/NNS
can/MD
win/VB
back/RB
the/DT
confidence/NN
of/IN
East/NNS
Germans/NNS
,/,
who/WP
have/VBP
taken/VBN
to/TO
the/DT
streets/NNS
by/IN
the/DT
thousands/NNS
in/IN
recent/JJ
weeks/NNS
to/TO
demand/VB
democratic/JJ
changes/NNS
,/,
depends/VBZ
largely/RB
on/IN
whether/IN
they/PRP
feel/VBP
they/PRP
can/MD
trust/VB
Mr./NNP
Krenz/NNP
./.
And/CC
that/DT
's/VBZ
a/DT
problem/NN
./.
Mr./NNP
Krenz/NNP
is/VBZ
not/RB
only/RB
closely/RB
identified/VBN
with/IN
his/PRP$
mentor/NN
,/,
Mr./NNP
Honecker/NNP
,/,
but/CC
also/RB
blamed/VBN
for/IN
ordering/VBG
violent/JJ
police/NN
action/NN
against/IN
protesters/NNS
this/DT
month/NN
and/CC
for/IN
praising/VBG
China/NNP
for/IN
sending/VBG
tanks/NNS
against/IN
student/NN
demonstrators/NNS
./.
``/``
I/PRP
hope/VBP
he/PRP
grows/VBZ
with/IN
the/DT
job/NN
,/,
''/''
says/VBZ
Rainer/NNP
Eppelmann/NNP
,/,
a/DT
Protestant/JJ
pastor/NN
in/IN
East/NNP
Berlin/NNP
./.
``/``
The/DT
most/RBS
important/JJ
thing/NN
is/VBZ
that/IN
he/PRP
have/VB
a/DT
chance/NN
./.
''/''
Although/IN
Mr./NNP
Krenz/NNP
is/VBZ
dedicated/VBN
to/TO
East/NNP
Germany/NNP
's/POS
conservative/JJ
vein/NN
of/IN
communism/NN
,/,
there/EX
is/VBZ
much/JJ
about/IN
his/PRP$
style/NN
that/WDT
sets/VBZ
him/PRP
apart/RB
from/IN
his/PRP$
party/NN
comrades/NNS
./.
Unlike/IN
Mr./NNP
Honecker/NNP
,/,
who/WP
tended/VBD
to/TO
lecture/VB
people/NNS
about/IN
socialist/JJ
values/NNS
,/,
Mr./NNP
Krenz/NNP
enjoys/VBZ
asking/VBG
questions/NNS
./.
Indeed/RB
,/,
one/CD
of/IN
his/PRP$
first/JJ
actions/NNS
as/IN
leader/NN
was/VBD
to/TO
visit/VB
a/DT
gritty/JJ
machine/NN
factory/NN
on/IN
the/DT
outskirts/NNS
of/IN
Berlin/NNP
and/CC
wander/VB
among/IN
the/DT
workers/NNS
--/:
a/FW
la/FW
Gorbachev/NNP
./.
He/PRP
was/VBD
later/RB
shown/VBN
on/IN
television/NN
,/,
fielding/VBG
questions/NNS
./.
At/IN
one/CD
point/NN
,/,
he/PRP
asked/VBD
a/DT
worker/NN
whether/IN
he/PRP
thought/VBD
East/NNS
Germans/NNS
were/VBD
fleeing/VBG
the/DT
country/NN
because/IN
of/IN
restrictive/JJ
travel/NN
policies/NNS
./.
The/DT
worker/NN
's/POS
tart/JJ
reply/NN
:/:
``/``
It/PRP
's/VBZ
more/JJR
than/IN
just/JJ
travel/NN
./.
People/NNS
have/VBP
a/DT
sense/NN
the/DT
government/NN
is/VBZ
ignoring/VBG
the/DT
real/JJ
problems/NNS
in/IN
our/PRP$
society/NN
./.
''/''
The/DT
exchange/NN
was/VBD
all/DT
the/DT
more/RBR
remarkable/JJ
in/IN
that/IN
authorities/NNS
released/VBD
television/NN
footage/NN
to/TO
Western/JJ
news/NN
agencies/NNS
./.
This/DT
same/JJ
tendency/NN
toward/IN
openness/NN
impressed/VBD
a/DT
group/NN
of/IN
visiting/VBG
U.S./NNP
congressmen/NNS
this/DT
spring/NN
./.
Rather/RB
than/IN
trying/VBG
to/TO
``/``
lecture/VB
us/PRP
,/,
''/''
says/VBZ
one/CD
congressional/JJ
aide/NN
who/WP
attended/VBD
the/DT
two-hour/JJ
meeting/NN
,/,
Mr./NNP
Krenz/NNP
``/``
wanted/VBD
to/TO
listen/VB
./.
''/''
Rep./NNP
Ronnie/NNP
Flippo/NNP
D./NNP
,/,
Ala./NNP
one/CD
of/IN
the/DT
members/NNS
of/IN
the/DT
delegation/NN
,/,
says/VBZ
he/PRP
was/VBD
particularly/RB
impressed/VBN
by/IN
Mr./NNP
Krenz/NNP
's/POS
ready/JJ
admission/NN
that/IN
East/NNP
Germany/NNP
needed/VBD
to/TO
change/VB
./.
``/``
He/PRP
's/VBZ
a/DT
very/RB
tough/JJ
man/NN
,/,
but/CC
one/CD
who/WP
's/VBZ
also/RB
open/JJ
to/TO
arguments/NNS
,/,
''/''
adds/VBZ
an/DT
aide/NN
to/TO
West/JJ
German/JJ
Chancellor/NNP
Helmut/NNP
Kohl/NNP
./.
But/CC
there/EX
's/VBZ
another/DT
side/NN
to/TO
Mr./NNP
Krenz/NNP
./.
Born/VBN
in/IN
a/DT
Baltic/JJ
town/NN
in/IN
an/DT
area/NN
which/WDT
is/VBZ
now/RB
part/NN
of/IN
Poland/NNP
,/,
he/PRP
has/VBZ
dedicated/VBN
his/PRP$
life/NN
to/TO
the/DT
party/NN
apparatus/NN
./.
He/PRP
moved/VBD
quickly/RB
through/IN
the/DT
ranks/NNS
with/IN
the/DT
help/NN
of/IN
his/PRP$
patron/NN
,/,
Mr./NNP
Honecker/NNP
,/,
and/CC
emerged/VBD
as/IN
the/DT
heir/NN
apparent/JJ
./.
Barbara/NNP
Donovan/NNP
,/,
an/DT
expert/NN
on/IN
East/NNP
Germany/NNP
at/IN
Radio/NNP
Free/NNP
Europe/NNP
in/IN
Munich/NNP
,/,
says/VBZ
Mr./NNP
Krenz/NNP
may/MD
project/VB
a/DT
smooth/JJ
image/NN
,/,
but/CC
she/PRP
doubts/VBZ
he/PRP
's/VBZ
a/DT
true/JJ
reformer/JJ
./.
Even/RB
if/IN
he/PRP
is/VBZ
,/,
she/PRP
adds/VBZ
,/,
he/PRP
appears/VBZ
to/TO
have/VB
only/RB
limited/JJ
room/NN
for/IN
maneuver/NN
within/IN
the/DT
Communist/NNP
Party/NNP
's/POS
ruling/NN
Politburo/NNP
./.
Against/IN
this/DT
background/NN
,/,
the/DT
new/JJ
East/NNP
German/NNP
leader/NN
must/MD
move/VB
quickly/RB
to/TO
shore/VB
up/RP
his/PRP$
government/NN
's/POS
standing/NN
./.
The/DT
sudden/JJ
growth/NN
of/IN
the/DT
opposition/NN
movement/NN
,/,
together/RB
with/IN
the/DT
steady/JJ
outflow/NN
of/IN
citizens/NNS
escaping/VBG
through/IN
Poland/NNP
and/CC
Hungary/NNP
,/,
has/VBZ
plunged/VBN
the/DT
country/NN
into/IN
its/PRP$
deepest/JJS
political/JJ
crisis/NN
since/IN
an/DT
anti-Soviet/JJ
workers/NNS
'/POS
uprising/NN
in/IN
1953/CD
./.
``/``
He/PRP
does/VBZ
n't/RB
have/VB
any/DT
honeymoon/NN
period/NN
,/,
''/''
says/VBZ
a/DT
Western/JJ
diplomat/NN
based/VBN
in/IN
East/NNP
Berlin/NNP
./.
``/``
But/CC
if/IN
he/PRP
's/VBZ
sharp/JJ
and/CC
quick/JJ
,/,
he/PRP
has/VBZ
a/DT
chance/NN
./.
''/''
The/DT
diplomat/NN
adds/VBZ
that/IN
Mr./NNP
Krenz/NNP
has/VBZ
several/JJ
things/NNS
going/VBG
for/IN
him/PRP
./.
The/DT
East/NNP
German/NNP
economy/NN
is/VBZ
strong/RB
compared/VBN
with/IN
other/JJ
East/JJ
bloc/NN
nations/NNS
./.
And/CC
his/PRP$
relative/JJ
youth/NN
could/MD
help/VB
him/PRP
project/VB
a/DT
more/RBR
vibrant/JJ
image/NN
,/,
contrasting/VBG
with/IN
the/DT
perception/NN
of/IN
Mr./NNP
Honecker/NNP
as/IN
an/DT
out-of-touch/JJ
old/JJ
man/NN
./.
For/IN
average/JJ
East/NNS
Germans/NNS
,/,
Mr./NNP
Krenz/NNP
remains/VBZ
a/DT
puzzle/NN
./.
``/``
Either/CC
he/PRP
was/VBD
n't/RB
being/VBG
real/JJ
in/IN
the/DT
past/NN
,/,
or/CC
he/PRP
is/VBZ
n't/RB
being/VBG
real/RB
right/RB
now/RB
,/,
''/''
says/VBZ
a/DT
30-year-old/JJ
East/JJ
German/JJ
doctor/NN
./.
``/``
Either/NNP
way/NN
,/,
I/PRP
have/VBP
a/DT
problem/NN
with/IN
how/WRB
quickly/RB
he/PRP
's/VBZ
changed/VBN
./.
''/''
The/DT
doctor/NN
was/VBD
among/IN
dozens/NNS
of/IN
people/NNS
milling/VBG
through/IN
East/JJ
Berlin/JJ
's/POS
Gethsemane/NNP
Church/NNP
Saturday/NNP
morning/NN
./.
The/DT
walls/NNS
of/IN
the/DT
church/NN
are/VBP
covered/VBN
with/IN
leaflets/NNS
,/,
news/NN
clippings/NNS
,/,
and/CC
handwritten/JJ
notes/NNS
associated/VBN
with/IN
the/DT
country/NN
's/POS
political/JJ
opposition/NN
./.
``/``
I/PRP
have/VBP
to/TO
come/VB
here/RB
to/TO
read/VB
the/DT
walls/NNS
,/,
''/''
says/VBZ
the/DT
doctor/NN
,/,
``/``
because/IN
it/PRP
's/VBZ
information/NN
I/PRP
still/RB
ca/MD
n't/RB
get/VB
through/IN
the/DT
newspapers/NNS
./.
''/''
Meanwhile/RB
,/,
East/NNP
Germany/NNP
's/POS
growing/VBG
openness/NN
may/MD
even/RB
allow/VB
the/DT
state-controlled/JJ
news/NN
media/NNS
to/TO
display/VB
a/DT
muted/JJ
sense/NN
of/IN
humor/NN
./.
Television/NN
last/JJ
week/NN
carried/VBD
a/DT
new/JJ
report/NN
on/IN
East/NNP
Berlin/NNP
's/POS
main/JJ
wallpaper/NN
factory/NN
and/CC
the/DT
need/NN
to/TO
boost/VB
production/NN
./.
East/NNS
Germans/NNS
remember/VBP
a/DT
comment/NN
a/DT
few/JJ
years/NNS
ago/RB
by/IN
Kurt/NNP
Hager/NNP
,/,
the/DT
government/NN
's/POS
top/NN
ideologist/NN
,/,
that/IN
just/RB
because/IN
a/DT
neighbor/NN
hangs/VBZ
new/JJ
wallpaper/NN
,/,
there/EX
's/VBZ
no/DT
reason/NN
to/TO
change/VB
your/PRP$
own/JJ
./.
His/PRP$
point/NN
was/VBD
there/EX
is/VBZ
no/DT
reason/NN
for/IN
East/NNP
Germany/NNP
to/TO
copy/VB
Soviet-style/JJ
changes/NNS
./.
``/``
It/PRP
's/VBZ
hard/JJ
to/TO
know/VB
whether/IN
it/PRP
was/VBD
intended/VBN
to/TO
be/VB
funny/JJ
,/,
''/''
says/VBZ
the/DT
East/NNP
Berlin/NNP
shopkeeper/NN
,/,
``/``
But/CC
everyone/NN
I/PRP
know/VBP
laughed/VBD
about/IN
it/PRP
./.
''/''
The/DT
list/NN
of/IN
laboratories/NNS
claiming/VBG
to/TO
be/VB
producing/VBG
inexplicable/JJ
amounts/NNS
of/IN
heat/NN
from/IN
``/``
cold/JJ
fusion/NN
''/''
experiments/NNS
is/VBZ
slowly/RB
growing/VBG
./.
But/CC
the/DT
experiments/NNS
continue/VBP
to/TO
be/VB
plagued/VBN
by/IN
lack/NN
of/IN
firm/JJ
evidence/NN
that/IN
the/DT
extra/JJ
heat/NN
is/VBZ
coming/VBG
from/IN
the/DT
fusing/NN
of/IN
hydrogen/NN
atoms/NNS
./.
New/JJ
experiments/NNS
at/IN
some/DT
of/IN
the/DT
big/JJ
national/JJ
laboratories/NNS
are/VBP
still/RB
unable/JJ
to/TO
find/VB
hints/NNS
of/IN
nuclear/JJ
fusion/NN
reactions/NNS
,/,
leaving/VBG
only/RB
the/DT
finding/NN
of/IN
tritium/NN
in/IN
a/DT
Texas/NNP
experiment/NN
to/TO
support/VB
University/NNP
of/IN
Utah/NNP
chemists/NNS
'/POS
claim/NN
of/IN
achieving/VBG
hydrogen/NN
fusion/NN
at/IN
room/NN
temperatures/NNS
./.
The/DT
latest/JJS
developments/NNS
in/IN
cold/JJ
fusion/NN
research/NN
were/VBD
presented/VBN
in/IN
24/CD
reports/NNS
delivered/VBN
at/IN
the/DT
fall/NN
meeting/NN
here/RB
of/IN
the/DT
Electrochemical/NNP
Society/NNP
,/,
the/DT
first/RB
scientific/JJ
meeting/NN
in/IN
five/CD
months/NNS
to/TO
hear/VB
formal/JJ
reports/NNS
on/IN
cold/JJ
fusion/NN
experiments/NNS
./.
The/DT
meeting/NN
offered/VBD
stark/JJ
evidence/NN
of/IN
a/DT
dramatic/JJ
fall/NN
in/IN
scientific/JJ
interest/NN
in/IN
cold/JJ
fusion/NN
research/NN
./.
Of/IN
the/DT
1,300/CD
chemists/NNS
registered/VBN
for/IN
the/DT
society/NN
's/POS
weeklong/NN
meeting/NN
,/,
fewer/RBR
than/IN
200/CD
sat/VBD
through/IN
the/DT
day/NN
and/CC
a/DT
half/NN
of/IN
cold/JJ
fusion/NN
presentations/NNS
at/IN
week/NN
's/POS
end/NN
./.
This/DT
was/VBD
in/IN
contrast/NN
with/IN
the/DT
society/NN
's/POS
meeting/NN
last/JJ
May/NNP
,/,
at/IN
the/DT
height/NN
of/IN
the/DT
controversy/NN
,/,
when/WRB
more/JJR
than/IN
1,500/CD
scientists/NNS
,/,
along/IN
with/IN
scores/NNS
of/IN
reporters/NNS
and/CC
TV/NN
crews/NNS
,/,
crowded/VBD
into/IN
a/DT
Los/NNP
Angeles/NNP
hotel/NN
ballroom/NN
for/IN
a/DT
tumultuous/JJ
special/JJ
night/NN
session/NN
on/IN
the/DT
subject/NN
./.
Neither/IN
of/IN
the/DT
two/CD
chemists/NNS
whose/WP$
Utah/NNP
experiments/NNS
triggered/VBD
the/DT
cold/JJ
fusion/NN
uproar/NN
,/,
Martin/NNP
Fleischmann/NNP
and/CC
B./NNP
Stanley/NNP
Pons/NNP
,/,
were/VBD
at/IN
the/DT
meeting/NN
./.
But/CC
some/DT
members/NNS
of/IN
an/DT
ad/FW
hoc/FW
expert/NN
committee/NN
set/VBD
up/RP
by/IN
the/DT
Department/NNP
of/IN
Energy/NNP
to/TO
evaluate/VB
the/DT
cold/JJ
fusion/NN
research/NN
were/VBD
in/IN
the/DT
audience/NN
./.
The/DT
committee/NN
is/VBZ
to/TO
recommend/VB
at/IN
the/DT
end/NN
of/IN
the/DT
month/NN
whether/IN
DOE/NNP
should/MD
support/VB
cold/JJ
fusion/NN
research/NN
./.
Most/JJS
of/IN
the/DT
two/CD
dozen/NN
scientists/NNS
taking/VBG
the/DT
podium/NN
reported/VBD
results/NNS
with/IN
new/JJ
,/,
more/RBR
sophisticated/JJ
variations/NNS
of/IN
the/DT
seemingly/RB
simple/JJ
electrolysis-of-water/JJ
experiments/NNS
described/VBN
last/JJ
March/NNP
by/IN
Messrs./NNP
Fleischmann/NNP
and/CC
Pons/NNP
./.
The/DT
experiments/NNS
involve/VBP
encircling/VBG
a/DT
thin/JJ
rod/NN
of/IN
palladium/NN
metal/NN
with/IN
a/DT
wire/NN
of/IN
platinum/NN
and/CC
plunging/VBG
the/DT
two/CD
electrodes/NNS
into/IN
``/``
heavy/JJ
''/''
water/NN
in/IN
which/WDT
the/DT
hydrogen/NN
atoms/NNS
are/VBP
a/DT
doubly/RB
heavy/JJ
form/NN
known/VBN
as/IN
deuterium/NN
./.
When/WRB
an/DT
electric/JJ
current/NN
is/VBZ
applied/VBN
to/TO
the/DT
palladium/NN
and/CC
platinum/NN
electrodes/NNS
,/,
the/DT
heavy/JJ
water/NN
did/VBD
begin/VB
to/TO
break/VB
up/RP
,/,
or/CC
dissociate/VB
./.
Ordinarily/RB
the/DT
electrolysis/NN
,/,
or/CC
breakup/NN
,/,
of/IN
the/DT
water/NN
would/MD
consume/VB
almost/RB
all/DT
of/IN
the/DT
electrical/JJ
energy/NN
./.
But/CC
Messrs./NNS
Fleischmann/NNP
and/CC
Pons/NNP
said/VBD
their/PRP$
experiments/NNS
also/RB
produced/VBD
large/JJ
amounts/NNS
of/IN
heat/NN
./.
The/DT
heat/NN
energy/NN
plus/IN
the/DT
energy/NN
consumed/VBN
by/IN
the/DT
breakup/NN
of/IN
the/DT
water/NN
molecules/NNS
added/VBD
to/TO
far/RB
more/JJR
energy/NN
coming/VBG
out/IN
of/IN
the/DT
apparatus/NN
than/IN
electrical/JJ
energy/NN
going/VBG
in/IN
,/,
they/PRP
reported/VBD
./.
Because/IN
they/PRP
also/RB
detected/VBD
tritium/NN
and/CC
indications/NNS
of/IN
nuclear/JJ
radiation/NN
,/,
they/PRP
asserted/VBD
that/IN
the/DT
``/``
excess/JJ
''/''
heat/NN
energy/NN
must/MD
be/VB
coming/VBG
from/IN
energy/NN
released/VBN
by/IN
the/DT
nuclear/JJ
fusion/NN
of/IN
deuterium/NN
atoms/NNS
inside/IN
the/DT
palladium/NN
rod/NN
./.
As/IN
of/IN
last/JJ
weekend/NN
,/,
a/DT
dozen/NN
labs/NNS
also/RB
have/VBP
reported/VBN
measuring/VBG
``/``
excess/JJ
''/''
heat/NN
from/IN
similar/JJ
electrolytic/JJ
experiments/NNS
,/,
although/IN
amounts/NNS
of/IN
such/JJ
heat/NN
vary/VBP
widely/RB
./.
One/CD
of/IN
the/DT
seven/CD
reports/NNS
presented/VBN
here/RB
of/IN
excess/JJ
heat/NN
production/NN
was/VBD
given/VBN
by/IN
Richard/NNP
A./NNP
Oriani/NNP
,/,
professor/NN
of/IN
chemical/NN
engineering/NN
at/IN
the/DT
University/NNP
of/IN
Minnesota/NNP
./.
Mr./NNP
Oriani/NNP
said/VBD
his/PRP$
skepticism/NN
of/IN
the/DT
Utah/NNP
claims/NNS
was/VBD
initially/RB
confirmed/VBN
when/WRB
his/PRP$
first/JJ
experiments/NNS
last/JJ
spring/NN
failed/VBD
to/TO
produce/VB
results/NNS
./.
But/CC
he/PRP
then/RB
borrowed/VBD
a/DT
palladium/NN
rod/NN
from/IN
chemists/NNS
at/IN
Texas/NNP
A&M/NNP
who/WP
said/VBD
they/PRP
were/VBD
getting/VBG
excess/JJ
heat/NN
./.
``/``
The/DT
results/NNS
were/VBD
fascinating/JJ
,/,
''/''
he/PRP
said/VBD
./.
On/IN
the/DT
fourth/JJ
``/``
run/NN
''/''
with/IN
the/DT
borrowed/VBN
rod/NN
,/,
the/DT
experiment/NN
began/VBD
producing/VBG
excess/JJ
heat/NN
./.
The/DT
experiment/NN
was/VBD
stopped/VBN
briefly/NN
to/TO
change/VB
an/DT
instrument/NN
./.
When/WRB
it/PRP
was/VBD
restarted/VBN
,/,
heat/NN
output/NN
``/``
really/RB
took/VBD
off/RP
''/''
and/CC
produced/VBD
excess/JJ
heat/NN
for/IN
several/JJ
hours/NNS
before/IN
dying/VBG
down/RP
,/,
he/PRP
said/VBD
./.
Typical/JJ
of/IN
other/JJ
experiments/NNS
,/,
Mr./NNP
Oriani/NNP
said/VBD
his/PRP$
experiment/NN
was/VBD
``/``
very/RB
erratic/JJ
./.
''/''
It/PRP
would/MD
go/VB
along/RP
doing/VBG
nothing/NN
but/CC
dissociating/VBG
the/DT
heavy/NN
water/NN
and/CC
then/RB
at/IN
totally/RB
unpredictable/JJ
times/NNS
,/,
it/PRP
would/MD
begin/VB
producing/VBG
excess/JJ
heat/NN
for/IN
as/RB
long/JJ
as/IN
10/CD
or/CC
11/CD
hours/NNS
before/RB
quieting/VBG
down/RP
./.
The/DT
excess/JJ
heat/NN
was/VBD
15/CD
%/NN
to/TO
20/CD
%/NN
more/JJR
than/IN
the/DT
energy/NN
involved/VBN
in/IN
the/DT
electrolysis/NN
of/IN
water/NN
./.
Mr./NNP
Oriani/NNP
said/VBD
the/DT
heat/NN
bursts/NNS
were/VBD
too/RB
large/JJ
and/CC
too/RB
long/JJ
to/TO
be/VB
explained/VBN
by/IN
the/DT
sudden/JJ
release/NN
of/IN
energy/NN
that/WDT
might/MD
have/VB
slowly/RB
accumulated/VBN
during/IN
the/DT
experiments/NNS
'/POS
quiescent/JJ
times/NNS
,/,
as/IN
some/DT
scientists/NNS
have/VBP
suggested/VBN
./.
``/``
There/EX
is/VBZ
a/DT
reality/NN
to/TO
the/DT
excess/JJ
energy/NN
,/,
''/''
he/PRP
said/VBD
./.
Other/JJ
scientists/NNS
said/VBD
they/PRP
also/RB
were/VBD
getting/VBG
sporadic/JJ
bursts/NNS
of/IN
excess/JJ
heat/NN
lasting/VBG
several/JJ
hours/NNS
at/IN
a/DT
time/NN
./.
The/DT
bursts/NNS
often/RB
occur/VBP
,/,
they/PRP
said/VBD
,/,
after/RB
they/PRP
``/``
perturbed/VBD
''/''
the/DT
experiments/NNS
by/IN
raising/VBG
or/CC
lowering/VBG
the/DT
amount/NN
of/IN
electric/JJ
current/JJ
being/VBG
applied/VBN
,/,
or/CC
switching/VBG
the/DT
current/NN
off/RP
and/CC
on/RP
./.
One/CD
chemist/NN
privately/RB
suggested/VBD
this/DT
hinted/VBD
that/IN
some/DT
``/``
anomalous/JJ
''/''
chemical/JJ
reactions/NNS
might/MD
be/VB
producing/VBG
the/DT
heat/NN
./.
One/CD
reason/NN
questions/NNS
surround/VBP
the/DT
heat/NN
experiments/NNS
is/VBZ
that/IN
they/PRP
involve/VBP
unusually/RB
meticulous/JJ
measurements/NNS
./.
Typically/RB
,/,
the/DT
input/NN
energy/NN
ranges/VBZ
from/IN
a/DT
third/JJ
of/IN
a/DT
watt/NN
to/TO
one/CD
watt/NN
and/CC
the/DT
excess/JJ
energy/NN
is/VBZ
measured/VBN
in/IN
tenths/NNS
of/IN
a/DT
watt/NN
./.
One/CD
exception/NN
is/VBZ
a/DT
continuing/VBG
experiment/NN
at/IN
Stanford/NNP
University/NNP
where/WRB
as/RB
much/JJ
as/IN
10/CD
watts/NNS
of/IN
energy/NN
are/VBP
being/VBG
put/VBD
into/IN
the/DT
electrolytic/JJ
cells/NNS
./.
A/DT
cell/NN
filled/VBN
with/IN
heavy/JJ
water/NN
is/VBZ
producing/VBG
1.0/CD
to/TO
1.5/CD
watts/NNS
more/JJR
heat/NN
than/IN
an/DT
identical/JJ
electrolytic/JJ
cell/NN
filled/VBN
with/IN
ordinary/JJ
water/NN
next/JJ
to/TO
it/PRP
,/,
reported/VBD
Turgut/NNP
M./NNP
Gur/NNP
,/,
an/DT
associate/NN
of/IN
materials/NNS
scientist/NN
Robert/NNP
A./NNP
Huggins/NNP
,/,
head/NN
of/IN
the/DT
Stanford/NNP
experimental/JJ
team/NN
./.
One/CD
of/IN
the/DT
few/JJ
hints/NNS
the/DT
excess/JJ
heat/NN
might/MD
be/VB
produced/VBN
by/IN
fusion/NN
came/VBD
from/IN
brief/JJ
remarks/NNS
by/IN
chemist/NN
John/NNP
Bockris/NNP
of/IN
Texas/NNP
A&M/NNP
University/NNP
./.
Mr./NNP
Bockris/NNP
previously/RB
reported/VBD
getting/VBG
bursts/NNS
of/IN
excess/JJ
heat/NN
and/CC
of/IN
detecting/VBG
increasing/VBG
amounts/NNS
of/IN
tritium/NN
forming/VBG
in/IN
the/DT
heavy/JJ
water/NN
./.
He/PRP
said/VBD
that/IN
within/IN
the/DT
past/JJ
few/JJ
days/NNS
,/,
he/PRP
's/VBZ
gotten/VBN
evidence/NN
that/IN
there/EX
is/VBZ
a/DT
``/``
weak/JJ
correlation/NN
''/''
between/IN
the/DT
time/NN
the/DT
heat/NN
bursts/NNS
occur/VBP
and/CC
the/DT
production/NN
of/IN
tritium/NN
./.
There/EX
is/VBZ
n't/RB
any/DT
way/NN
to/TO
continuously/RB
measure/VB
the/DT
amount/NN
of/IN
tritium/NN
in/IN
the/DT
heavy/JJ
water/NN
,/,
so/IN
it/PRP
's/VBZ
been/VBN
difficult/JJ
to/TO
tell/VB
whether/CC
the/DT
tritium/NN
formation/NN
is/VBZ
related/VBN
to/TO
the/DT
heat/NN
bursts/NNS
or/CC
some/DT
other/JJ
phenomenon/NN
./.
Increasingly/RB
careful/JJ
attempts/NNS
to/TO
measure/VB
neutrons/NNS
,/,
which/WDT
would/MD
be/VB
strong/JJ
evidence/NN
of/IN
fusion/NN
reactions/NNS
,/,
continue/VBP
to/TO
be/VB
negative/JJ
./.
Messrs./NNS
Fleischmann/NNP
and/CC
Pons/NNP
initially/RB
reported/VBD
indirect/JJ
evidence/NN
of/IN
neutrons/NNS
being/VBG
produced/VBN
in/IN
their/PRP$
experiment/NN
but/CC
later/RB
conceded/VBD
the/DT
measurements/NNS
were/VBD
questionable/JJ
./.
Researchers/NNS
at/IN
Sandia/NNP
National/NNP
Laboratories/NNP
in/IN
Albuquerque/NNP
,/,
N.M./NNP
,/,
reported/VBD
they/PRP
went/VBD
so/RB
far/RB
as/IN
to/TO
take/VB
a/DT
``/``
cold/JJ
fusion/NN
''/''
experiment/NN
and/CC
three/CD
neutron/NN
detectors/NNS
into/IN
a/DT
tunnel/NN
under/IN
300/CD
feet/NNS
of/IN
granite/NN
to/TO
shield/VB
the/DT
detectors/NNS
from/IN
cosmic/JJ
rays/NNS
./.
A/DT
number/NN
of/IN
times/NNS
they/PRP
detected/VBD
neutrons/NNS
in/IN
one/CD
,/,
sometimes/RB
two/CD
,/,
of/IN
the/DT
three/CD
detectors/NNS
,/,
but/CC
only/RB
once/RB
during/IN
411/CD
hours/NNS
of/IN
the/DT
experiment/NN
did/VBD
they/PRP
detect/VB
a/DT
neutron/NN
burst/NN
in/IN
all/DT
three/CD
detectors/NNS
--/:
and/CC
they/PRP
think/VBP
that/DT
was/VBD
a/DT
spurious/JJ
event/NN
./.
Shimson/NNP
Gottesfeld/NNP
of/IN
Los/NNP
Alamos/NNP
National/NNP
Laboratory/NNP
said/VBD
researchers/NNS
there/RB
detected/VBD
a/DT
burst/NN
of/IN
neutrons/NNS
from/IN
an/DT
early/JJ
cold/JJ
fusion/NN
experiment/NN
last/JJ
April/NNP
but/CC
decided/VBD
not/RB
to/TO
announce/VB
it/PRP
until/IN
they/PRP
could/MD
confirm/VB
it/PRP
./.
In/IN
subsequent/JJ
experiments/NNS
,/,
one/CD
of/IN
two/CD
neutron/NN
detectors/NNS
occasionally/RB
indicated/VBD
a/DT
burst/NN
of/IN
neutrons/NNS
but/CC
neutron/NN
bursts/NNS
were/VBD
never/RB
recorded/VBN
in/IN
both/DT
detectors/NNS
at/IN
the/DT
same/JJ
time/NN
./.
They/PRP
concluded/VBD
the/DT
indications/NNS
of/IN
neutrons/NNS
stemmed/VBD
from/IN
faults/NNS
in/IN
the/DT
detectors/NNS
rather/RB
than/IN
from/IN
the/DT
cold/JJ
fusion/NN
experiment/NN
./.
At/IN
the/DT
Lawrence/NNP
Berkeley/NNP
Laboratory/NNP
in/IN
California/NNP
,/,
new/JJ
experiments/NNS
indicated/VBD
that/IN
the/DT
lithium/NN
added/VBN
to/TO
the/DT
heavy/JJ
water/NN
so/IN
it/PRP
will/MD
conduct/VB
a/DT
current/NN
can/MD
produce/VB
previously/RB
unsuspected/JJ
electrical/JJ
effects/NNS
on/IN
the/DT
surface/NN
of/IN
the/DT
palladium/NN
rod/NN
--/:
which/WDT
Messrs./NNS
Fleischmann/NNP
and/CC
Pons/NNP
might/MD
have/VB
misinterpreted/VBN
,/,
reported/VBD
Philip/NNP
Ross/NNP
from/IN
the/DT
California/NNP
laboratory/NN
./.
Dow/NNP
Jones/NNP
&/CC
Co./NNP
announced/VBD
Wall/NNP
Street/NNP
Journal/NNP
advertising/NN
rates/NNS
for/IN
1990/CD
./.
The/DT
rates/NNS
,/,
which/WDT
take/VBP
effect/NN
Jan./NNP
2/CD
,/,
include/VBP
a/DT
4/CD
%/NN
increase/NN
for/IN
national/JJ
edition/NN
advertising/NN
./.
The/DT
Journal/NNP
also/RB
will/MD
offer/VB
expanded/VBN
volume/NN
and/CC
frequency/NN
discounts/NNS
./.
The/DT
increase/NN
for/IN
national/JJ
edition/NN
advertising/NN
is/VBZ
less/JJR
than/IN
the/DT
inflation/NN
rate/NN
and/CC
compares/VBZ
with/IN
a/DT
6.5/CD
%/NN
increase/NN
in/IN
1989/CD
./.
``/``
Newsprint/NN
and/CC
postage/NN
prices/NNS
this/DT
year/NN
have/VBP
not/RB
gone/VBN
up/RB
,/,
''/''
said/VBD
Peter/NNP
R./NNP
Kann/NNP
,/,
president/NN
of/IN
Dow/NNP
Jones/NNP
./.
``/``
We/PRP
have/VBP
invested/VBN
in/IN
improved/VBN
editorial/JJ
quality/NN
and/CC
expanded/VBN
our/PRP$
quality/NN
audience/NN
without/IN
substantially/RB
increasing/VBG
our/PRP$
costs/NNS
./.
Fundamental/JJ
fairness/NN
and/CC
a/DT
sense/NN
of/IN
responsibility/NN
lead/VBP
us/PRP
to/TO
share/VB
operating/NN
efficiencies/NNS
with/IN
our/PRP$
customers/NNS
./.
''/''
Advertising/NN
rates/NNS
for/IN
the/DT
Eastern/JJ
,/,
Midwest/JJ
,/,
Western/JJ
and/CC
Southwest/JJ
editions/NNS
will/MD
increase/VB
an/DT
average/NN
5.5/CD
%/NN
,/,
and/CC
rates/NNS
for/IN
localized/VBN
advertising/NN
editions/NNS
will/MD
increase/VB
7.5/CD
%/NN
./.
Rates/NNP
for/IN
the/DT
Wall/NNP
Street/NNP
Journal/NNP
Reports/NNP
will/MD
remain/VB
unchanged/JJ
./.
A/DT
one-time/JJ
noncontract/JJ
full-page/JJ
advertisement/NN
in/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
national/JJ
edition/NN
will/MD
cost/VB
$/$
99,385/CD
./.
Advertising/NN
rates/NNS
for/IN
The/DT
Wall/NNP
Street/NNP
Journal\/Europe/NNP
,/,
published/VBN
in/IN
Brussels/NNP
and/CC
printed/VBN
in/IN
the/DT
Netherlands/NNP
and/CC
Switzerland/NNP
,/,
will/MD
increase/VB
9/CD
%/NN
./.
Rates/NNP
for/IN
The/DT
Asian/NNP
Wall/NNP
Street/NNP
Journal/NNP
,/,
published/VBN
and/CC
printed/VBN
in/IN
Hong/NNP
Kong/NNP
and/CC
also/RB
printed/VBN
in/IN
Singapore/NNP
and/CC
Tokyo/NNP
,/,
will/MD
rise/VB
8/CD
%/NN
./.
Rates/NNP
for/IN
The/DT
Asian/NNP
Wall/NNP
Street/NNP
Journal/NNP
Weekly/NNP
,/,
published/VBN
in/IN
New/NNP
York/NNP
for/IN
North/JJ
American/JJ
readers/NNS
,/,
will/MD
rise/VB
6/CD
%/NN
./.
Dow/NNP
Jones/NNP
also/RB
publishes/VBZ
Barron/NNP
's/POS
magazine/NN
,/,
other/JJ
periodicals/NNS
and/CC
community/NN
newspapers/NNS
and/CC
operates/VBZ
electronic/JJ
business/NN
information/NN
services/NNS
./.
It/PRP
owns/VBZ
67/CD
%/NN
of/IN
Telerate/NNP
Inc./NNP
,/,
a/DT
leading/JJ
supplier/NN
of/IN
computerized/JJ
financial/JJ
information/NN
on/IN
global/JJ
markets/NNS
./.
Reflecting/VBG
the/DT
impact/NN
of/IN
lower/JJR
semiconductor/NN
prices/NNS
and/CC
cuts/NNS
in/IN
defense/NN
spending/NN
,/,
Texas/NNP
Instruments/NNP
Inc./NNP
said/VBD
third-quarter/JJ
net/JJ
income/NN
fell/VBD
31/CD
%/NN
and/CC
sales/NNS
dropped/VBD
slightly/RB
from/IN
a/DT
year/NN
earlier/RBR
./.
Net/JJ
fell/VBD
to/TO
$/$
65/CD
million/CD
,/,
or/CC
67/CD
cents/NNS
a/DT
common/JJ
share/NN
,/,
from/IN
$/$
93.7/CD
million/CD
or/CC
$/$
1.03/CD
a/DT
share/NN
,/,
a/DT
year/NN
ago/RB
./.
Sales/NNS
fell/VBD
2.5/CD
%/NN
to/TO
$/$
1.54/CD
billion/CD
from/IN
$/$
1.58/CD
billion/CD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
the/DT
electronics/NNS
and/CC
defense/NN
concern/NN
had/VBD
net/JJ
of/IN
$/$
255.8/CD
million/CD
,/,
or/CC
$/$
2.70/CD
a/DT
share/NN
,/,
down/RB
5.6/CD
%/NN
from/IN
$/$
271/CD
million/CD
,/,
or/CC
$/$
3.01/CD
a/DT
share/NN
,/,
in/IN
the/DT
year-ago/JJ
period/NN
./.
Sales/NNS
were/VBD
$/$
4.66/CD
billion/CD
,/,
up/RB
1.3/CD
%/NN
from/IN
$/$
4.6/CD
billion/CD
./.
Jerry/NNP
Junkins/NNP
,/,
chairman/NN
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
said/VBD
sluggish/JJ
consumer-electronics/JJ
sales/NNS
reduced/VBD
demand/NN
for/IN
semiconductors/NNS
./.
That/IN
,/,
coupled/VBN
with/IN
lower/JJR
semiconductor/NN
prices/NNS
and/CC
higher/JJR
semiconductor-depreciation/JJ
expense/NN
,/,
contributed/VBD
to/TO
the/DT
decline/NN
in/IN
sales/NNS
and/CC
profit/NN
./.
In/IN
addition/NN
,/,
cost/NN
increases/NNS
related/VBN
to/TO
fixed-price/JJ
defense/NN
contracts/NNS
and/CC
a/DT
$/$
10/CD
million/CD
charge/NN
to/TO
reduce/VB
the/DT
work/NN
force/NN
of/IN
Texas/NNP
Instruments/NNP
'/POS
defense-electronics/JJ
division/NN
also/RB
reduced/VBD
net/JJ
./.
However/RB
,/,
the/DT
quarter/NN
results/NNS
included/VBD
$/$
28/CD
million/CD
in/IN
royalty/NN
income/NN
from/IN
patent/NN
licenses/NNS
,/,
up/RB
from/IN
$/$
21/CD
million/CD
in/IN
the/DT
year-earlier/JJ
period/NN
./.
The/DT
nine/CD
months/NNS
include/VBP
$/$
125/CD
million/CD
of/IN
royalty/NN
income/NN
,/,
up/RB
from/IN
$/$
98/CD
million/CD
last/JJ
year/NN
./.
Mr./NNP
Junkins/NNP
was/VBD
n't/RB
optimistic/JJ
about/IN
the/DT
short-term/JJ
outlook/NN
,/,
hinting/VBG
that/IN
further/JJ
workforce/NN
reductions/NNS
may/MD
be/VB
needed/VBN
./.
``/``
We/PRP
expect/VBP
near-term/JJ
sluggishness/NN
in/IN
the/DT
electronics/NNS
market/NN
,/,
''/''
he/PRP
said/VBD
,/,
``/``
and/CC
we/PRP
will/MD
take/VB
ongoing/JJ
cost-reduction/JJ
actions/NNS
as/RB
necessary/JJ
to/TO
keep/VB
operations/NNS
aligned/VBN
with/IN
demand/NN
./.
''/''
Further/RB
,/,
he/PRP
said/VBD
,/,
an/DT
internal/JJ
reorganization/NN
to/TO
combine/VB
several/JJ
divisions/NNS
into/IN
the/DT
Information/NNP
Technology/NNP
Group/NNP
is/VBZ
expected/VBN
to/TO
affect/VB
fourth-quarter/JJ
results/NNS
by/IN
an/DT
undisclosed/JJ
amount/NN
./.
Lynch/NNP
Corp./NNP
said/VBD
its/PRP$
Lynch/NNP
Telephone/NNP
Corp./NNP
subsidiary/NN
completed/VBD
the/DT
acquisition/NN
of/IN
Western/NNP
New/NNP
Mexico/NNP
Telephone/NNP
Co./NNP
for/IN
$/$
20/CD
million/CD
plus/IN
assumption/NN
of/IN
$/$
24/CD
million/CD
of/IN
debt/NN
./.
Western/NNP
New/NNP
Mexico/NNP
Telephone/NNP
,/,
Silver/NNP
City/NNP
,/,
had/VBD
net/JJ
income/NN
of/IN
$/$
1.9/CD
million/CD
on/IN
revenue/NN
of/IN
about/RB
$/$
10/CD
million/CD
last/JJ
year/NN
./.
It/PRP
is/VBZ
an/DT
independent/JJ
phone/NN
company/NN
with/IN
a/DT
service/NN
area/NN
of/IN
15,000/CD
square/JJ
miles/NNS
in/IN
southwest/JJ
New/NNP
Mexico/NNP
./.
It/PRP
is/VBZ
also/RB
a/DT
partner/NN
in/IN
the/DT
wireline/JJ
cellular/JJ
franchise/NN
covering/VBG
most/JJS
of/IN
western/JJ
New/NNP
Mexico/NNP
./.
The/DT
transaction/NN
represents/VBZ
Lynch/NNP
's/POS
entry/NN
into/IN
the/DT
telephone/NN
business/NN
./.
The/DT
company/NN
,/,
which/WDT
has/VBZ
interests/NNS
in/IN
television/NN
,/,
trucking/NN
services/NNS
,/,
and/CC
glass-making/NN
and/CC
food-processing/NN
equipment/NN
,/,
said/VBD
it/PRP
plans/VBZ
to/TO
make/VB
other/JJ
acquisitions/NNS
in/IN
the/DT
telephone/NN
industry/NN
./.
Nelson/NNP
Bunker/NNP
Hunt/NNP
's/POS
attempted/VBN
corner/NN
on/IN
silver/NN
a/DT
decade/NN
ago/RB
is/VBZ
still/RB
haunting/VBG
the/DT
market/NN
in/IN
this/DT
metal/NN
./.
Silver/NN
,/,
now/RB
trading/VBG
around/RB
$/$
5/CD
an/DT
ounce/NN
,/,
surged/VBD
to/TO
an/DT
all-time/JJ
peak/NN
of/IN
$/$
50/CD
an/DT
ounce/NN
in/IN
January/NNP
1980/CD
from/IN
around/RB
$/$
9/CD
in/IN
mid-1979/NN
./.
``/``
Mr./NNP
Hunt/NNP
's/POS
attempt/NN
to/TO
squeeze/VB
the/DT
silver/NN
market/NN
10/CD
years/NNS
ago/RB
is/VBZ
still/RB
indirectly/RB
to/TO
blame/VB
for/IN
today/NN
's/POS
market/NN
depression/NN
,/,
''/''
says/VBZ
Lesley/NNP
Edgar/NNP
,/,
managing/VBG
director/NN
of/IN
Sharps/NNP
Pixley/NNP
Ltd./NNP
,/,
London/NNP
bullion/NN
brokers/NNS
./.
While/IN
some/DT
100/CD
million/CD
ounces/NNS
of/IN
silver/NN
once/RB
held/VBN
by/IN
Mr./NNP
Hunt/NNP
and/CC
Middle/NNP
Eastern/NNP
associates/NNS
are/VBP
n't/RB
hanging/VBG
over/IN
the/DT
market/NN
anymore/RB
,/,
the/DT
price/NN
surge/NN
of/IN
1979-80/CD
precipitated/VBD
an/DT
expansion/NN
of/IN
mine/JJ
production/NN
and/CC
scrap/NN
recovery/NN
and/CC
encouraged/VBD
silver/JJ
consumers/NNS
to/TO
economize/VB
on/IN
silver/JJ
use/NN
,/,
Mr./NNP
Edgar/NNP
says/VBZ
./.
Photographic/JJ
developers/NNS
,/,
for/IN
example/NN
,/,
bought/VBD
equipment/NN
to/TO
recover/VB
silver/NN
from/IN
spent/JJ
photographs/NNS
,/,
negatives/NNS
and/CC
processing/NN
solutions/NNS
./.
Meanwhile/RB
,/,
the/DT
photographic/JJ
industry/NN
,/,
which/WDT
accounts/VBZ
for/IN
44/CD
%/NN
of/IN
silver/NN
consumption/NN
,/,
continues/VBZ
to/TO
look/VB
for/IN
substitutes/NNS
./.
Japanese/JJ
and/CC
U.S./NNP
photographic/JJ
firms/NNS
are/VBP
beginning/VBG
to/TO
produce/VB
electronic/JJ
cameras/NNS
and/CC
X-rays/NNS
that/WDT
do/VBP
n't/RB
require/VB
silver/NN
,/,
dealers/NNS
say/VBP
./.
Silver/NN
's/POS
history/NN
of/IN
volatility/NN
is/VBZ
also/RB
discouraging/VBG
investors/NNS
,/,
dealers/NNS
say/VBP
./.
Even/RB
in/IN
the/DT
present/JJ
uncertain/JJ
investment/NN
climate/NN
,/,
investors/NNS
are/VBP
preferring/VBG
``/``
quality/NN
assets/NNS
''/''
such/JJ
as/IN
Treasury/NNP
bills/NNS
and/CC
bonds/NNS
to/TO
gold/NN
,/,
silver/NN
and/CC
platinum/NN
,/,
dealers/NNS
say/VBP
./.
Although/IN
prices/NNS
rallied/VBD
briefly/RB
following/VBG
the/DT
tumble/NN
on/IN
world/NN
stock/NN
markets/NNS
earlier/RBR
this/DT
month/NN
and/CC
the/DT
related/VBN
decline/NN
of/IN
the/DT
dollar/NN
,/,
precious/JJ
metals/NNS
are/VBP
out/RB
of/IN
favor/NN
for/IN
the/DT
moment/NN
because/IN
of/IN
high/JJ
interest/NN
rates/NNS
and/CC
a/DT
determination/NN
by/IN
industrial/JJ
nations/NNS
to/TO
curb/VB
inflation/NN
,/,
dealers/NNS
say/VBP
./.
Silver/NN
,/,
however/RB
is/VBZ
in/IN
a/DT
deeper/JJR
slump/NN
than/IN
are/VBP
gold/NN
and/CC
platinum/NN
./.
Some/DT
analysts/NNS
contend/VBP
that/DT
silver/NN
is/VBZ
cheap/JJ
now/RB
that/IN
prices/NNS
are/VBP
languishing/VBG
at/IN
levels/NNS
last/RB
seen/VBN
in/IN
the/DT
mid-1970s/NNS
./.
``/``
Bargain/NN
hunters/NNS
believe/VBP
that/DT
silver/NN
offers/VBZ
the/DT
best/JJS
value/NN
amongst/IN
precious/JJ
metals/NNS
,/,
''/''
says/VBZ
Frederick/NNP
R./NNP
Demler/NNP
,/,
analyst/NN
at/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc/NNP
./.
A/DT
further/JJ
decline/NN
in/IN
prices/NNS
will/MD
lead/VB
to/TO
mine/JJ
production/NN
cuts/NNS
in/IN
the/DT
U.S./NNP
,/,
he/PRP
says/VBZ
./.
Scrap/NN
merchants/NNS
are/VBP
converting/VBG
smaller/JJR
quantities/NNS
of/IN
metal/NN
into/IN
silver/NN
,/,
while/IN
low/JJ
prices/NNS
are/VBP
discouraging/VBG
exports/NNS
from/IN
India/NNP
and/CC
the/DT
Soviet/NNP
Union/NNP
./.
Silver/NN
prices/NNS
could/MD
also/RB
be/VB
boosted/VBN
by/IN
strikes/NNS
in/IN
leading/JJ
producing/VBG
nations/NNS
Peru/NNP
and/CC
Mexico/NNP
,/,
Mr./NNP
Demler/NNP
says/VBZ
./.
Meanwhile/RB
,/,
total/JJ
fabrication/NN
demand/NN
for/IN
silver/NN
has/VBZ
risen/VBN
six/CD
years/NNS
in/IN
a/DT
row/NN
,/,
he/PRP
says/VBZ
./.
Japanese/JJ
demand/NN
grew/VBD
by/IN
70/CD
%/NN
in/IN
the/DT
first/JJ
half/NN
of/IN
this/DT
year/NN
and/CC
the/DT
nation/NN
plans/VBZ
an/DT
issue/NN
of/IN
a/DT
silver/JJ
commemorative/JJ
coin/NN
that/WDT
will/MD
require/VB
4.5/CD
million/CD
ounces/NNS
./.
Compared/VBN
with/IN
huge/JJ
annual/JJ
surpluses/NNS
of/IN
more/RBR
than/IN
100/CD
million/CD
ounces/NNS
in/IN
the/DT
first/JJ
half/NN
of/IN
the/DT
1980s/NNS
,/,
world/NN
silver/NN
supplies/NNS
and/CC
consumption/NN
are/VBP
now/RB
nearly/RB
in/IN
balance/NN
,/,
Mr./NNP
Demler/NNP
says/VBZ
./.
Despite/IN
intermittent/JJ
rallies/NNS
in/IN
the/DT
past/JJ
few/JJ
years/NNS
,/,
improvements/NNS
in/IN
the/DT
supply-demand/JJ
balance/NN
have/VBP
n't/RB
managed/VBN
to/TO
push/VB
silver/JJ
prices/NNS
into/IN
a/DT
higher/JJR
range/NN
./.
``/``
There/EX
's/VBZ
just/RB
too/RB
much/JJ
silver/NN
around/RP
,/,
''/''
says/VBZ
Tom/NNP
Butler/NNP
,/,
an/DT
analyst/NN
at/IN
Samuel/NNP
Montagu/NNP
&/CC
Co./NNP
,/,
a/DT
London/NNP
bullion/NN
house/NN
./.
A/DT
huge/JJ
silver/NN
stockpile/NN
at/IN
exchanges/NNS
,/,
refiners/NNS
,/,
consuming/NN
industries/NNS
and/CC
government/NN
warehouses/NNS
of/IN
at/IN
least/JJS
617/CD
million/CD
ounces/NNS
is/VBZ
the/DT
market/NN
depressant/NN
,/,
says/VBZ
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
in/IN
a/DT
report/NN
./.
This/DT
year/NN
alone/RB
,/,
inventories/NNS
at/IN
the/DT
Commodity/NNP
Exchange/NNP
of/IN
New/NNP
York/NNP
jumped/VBD
``/``
by/IN
a/DT
staggering/JJ
46/CD
million/CD
to/TO
221/CD
million/CD
ounces/NNS
''/''
because/IN
of/IN
producer/NN
deliveries/NNS
,/,
de-stocking/NN
by/IN
fabricators/NNS
and/CC
sales/NNS
by/IN
disenchanted/JJ
investors/NNS
,/,
says/VBZ
Rhona/NNP
O'Connell/NNP
,/,
London-based/JJ
precious/JJ
metals/NNS
analyst/NN
at/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
./.
``/``
Silver/JJ
production/NN
is/VBZ
also/RB
in/IN
an/DT
inexorable/JJ
upward/JJ
trend/NN
,/,
''/''
Ms./NNP
O'Connell/NNP
says/VBZ
./.
Moreover/RB
,/,
while/IN
Asian/NNP
and/CC
Middle/NNP
Eastern/NNP
investors/NNS
hoard/VBP
gold/NN
and/CC
help/VBP
underpin/VB
its/PRP$
price/NN
,/,
silver/NN
does/VBZ
n't/RB
have/VB
the/DT
same/JJ
mystique/NN
,/,
dealers/NNS
say/VBP
./.
Investors/NNS
have/VBP
gotten/VBN
burned/VBN
on/IN
silver/NN
so/RB
often/RB
that/IN
they/PRP
are/VBP
far/RB
more/JJR
partial/JJ
to/TO
gold/NN
,/,
says/VBZ
Urs/NNP
Seiler/NNP
,/,
senior/JJ
vice/NN
president/NN
at/IN
Union/NNP
Bank/NNP
of/IN
Switzerland/NNP
./.
Yet/RB
if/IN
gold/JJ
prices/NNS
improve/VBP
,/,
silver/JJ
prices/NNS
could/MD
rally/VB
sharply/RB
,/,
he/PRP
says/VBZ
./.
However/RB
,/,
dealers/NNS
caution/VBP
that/IN
any/DT
increase/NN
would/MD
be/VB
$/$
1/CD
to/TO
$/$
2/CD
at/IN
most/JJS
./.
Looking/VBG
ahead/RB
to/TO
other/JJ
commodity/NN
markets/NNS
this/DT
week/NN
:/:
Livestock/NN
and/CC
Meats/NNS
Analysts/NNS
expect/VBP
the/DT
prices/NNS
of/IN
live/JJ
cattle/NNS
futures/NNS
contracts/NNS
to/TO
rise/VB
in/IN
trading/NN
today/NN
in/IN
the/DT
wake/NN
of/IN
a/DT
government/NN
quarterly/JJ
census/NN
that/WDT
found/VBD
fewer-than-expected/JJ
cattle/NNS
on/IN
feedlots/NNS
./.
After/IN
the/DT
close/NN
of/IN
trading/NN
Friday/NNP
,/,
the/DT
Agriculture/NNP
Department/NNP
reported/VBD
that/IN
feedlots/NNS
in/IN
the/DT
13/CD
biggest/JJS
ranch/NN
states/NNS
held/VBD
8.06/CD
million/CD
cattle/NNS
on/IN
Oct./NNP
1/CD
,/,
down/RB
6/CD
%/NN
from/IN
that/DT
date/NN
a/DT
year/NN
earlier/RBR
./.
Most/JJS
analysts/NNS
had/VBD
expected/VBN
the/DT
government/NN
to/TO
report/VB
a/DT
4/CD
%/NN
decline/NN
./.
Feedlots/NNS
fatten/VBP
young/JJ
cattle/NNS
for/IN
slaughter/NN
,/,
so/IN
a/DT
decline/NN
signals/VBZ
a/DT
tightening/VBG
supply/NN
of/IN
beef/NN
./.
The/DT
government/NN
reported/VBD
that/IN
the/DT
number/NN
of/IN
young/JJ
cattle/NNS
placed/VBN
on/IN
feedlots/NNS
during/IN
the/DT
quarter/NN
dropped/VBD
5/CD
%/NN
compared/VBN
with/IN
the/DT
year-earlier/JJ
quarter/NN
./.
Many/JJ
industry/NN
analysts/NNS
had/VBD
been/VBN
projecting/VBG
a/DT
3/CD
%/NN
decline/NN
in/IN
placements/NNS
for/IN
the/DT
quarter/NN
./.
In/IN
the/DT
1988/CD
quarter/NN
,/,
many/JJ
farmers/NNS
were/VBD
forced/VBN
to/TO
sell/VB
their/PRP$
cattle/NNS
to/TO
feedlot/NN
operators/NNS
because/IN
the/DT
drought/NN
dried/VBD
out/RP
the/DT
pasture/NN
on/IN
their/PRP$
ranches/NNS
./.
The/DT
number/NN
of/IN
cattle/NNS
moving/VBG
onto/IN
feedlots/NNS
in/IN
the/DT
recent/JJ
quarter/NN
was/VBD
also/RB
lower/JJR
because/IN
fattening/NN
cattle/NNS
is/VBZ
less/RBR
profitable/JJ
./.
A/DT
shortage/NN
of/IN
young/JJ
cattle/NNS
has/VBZ
made/VBN
them/PRP
more/RBR
expensive/JJ
for/IN
feedlot/NN
operators/NNS
to/TO
buy/VB
./.
The/DT
Agriculture/NNP
Department/NNP
also/RB
said/VBD
that/IN
the/DT
number/NN
of/IN
fattened/VBN
cattle/NNS
slaughtered/VBN
in/IN
the/DT
quarter/NN
dropped/VBD
by/IN
5/CD
%/NN
from/IN
the/DT
1988/CD
quarter/NN
,/,
which/WDT
was/VBD
in/IN
line/NN
with/IN
projections/NNS
by/IN
analysts/NNS
./.
Energy/NN
Friday/NNP
's/POS
44-cent-a-barrel/JJ
price/NN
drop/NN
to/TO
$/$
19.98/CD
in/IN
the/DT
expiring/VBG
November/NNP
contract/NN
for/IN
West/NNP
Texas/NNP
Intermediate/NNP
crude/NN
may/MD
well/RB
set/VB
the/DT
tone/NN
for/IN
trading/NN
this/DT
week/NN
in/IN
petroleum/NN
futures/NNS
on/IN
the/DT
New/NNP
York/NNP
Mercantile/NNP
Exchange/NNP
./.
Most/JJS
traders/NNS
and/CC
analysts/NNS
attributed/VBD
the/DT
decline/NN
to/TO
technical/JJ
factors/NNS
associated/VBN
with/IN
the/DT
contract/NN
's/POS
going/VBG
off/RB
the/DT
board/NN
./.
Others/NNS
said/VBD
that/IN
the/DT
drop/NN
continued/VBD
the/DT
downward/JJ
correction/NN
that/WDT
's/VBZ
been/VBN
due/JJ
in/IN
the/DT
petroleum/NN
pits/NNS
and/CC
that/IN
such/PDT
a/DT
trend/NN
could/MD
well/RB
continue/VB
in/IN
the/DT
next/JJ
several/JJ
trading/NN
sessions/NNS
./.
Barring/VBG
any/DT
petroleum-related/JJ
news/NN
events/NNS
,/,
trading/NN
in/IN
the/DT
days/NNS
ahead/RB
should/MD
further/RB
test/VB
recent/JJ
projections/NNS
by/IN
oil/NN
economists/NNS
and/CC
other/JJ
market/NN
watchers/NNS
that/IN
strong/JJ
fourth-quarter/JJ
demand/NN
will/MD
keep/VB
prices/NNS
firm/JJ
./.
Copper/NN
Copper/NN
prices/NNS
fell/VBD
sharply/RB
Friday/NNP
afternoon/NN
./.
For/IN
example/NN
,/,
copper/NN
for/IN
December/NNP
delivery/NN
settled/VBD
4.5/CD
cents/NNS
lower/RBR
at/IN
$/$
1.2345/CD
a/DT
pound/NN
./.
Pressure/NN
came/VBD
from/IN
several/JJ
developments/NNS
including/VBG
the/DT
settlement/NN
of/IN
two/CD
long-term/JJ
strikes/NNS
./.
On/IN
Friday/NNP
,/,
one/CD
analyst/NN
said/VBD
,/,
rank-and-file/JJ
workers/NNS
ratified/VBD
a/DT
new/JJ
labor/NN
agreement/NN
ending/VBG
a/DT
three-month/JJ
strike/NN
at/IN
the/DT
Highland/NNP
Valley/NNP
mine/NN
in/IN
British/NNP
Columbia/NNP
./.
In/IN
Mexico/NNP
,/,
the/DT
analyst/NN
added/VBD
,/,
employees/NNS
at/IN
the/DT
Cananea/NNP
mine/NN
,/,
who/WP
have/VBP
been/VBN
out/IN
of/IN
work/NN
since/IN
late/JJ
August/NNP
when/WRB
the/DT
mine/NN
was/VBD
declared/VBN
bankrupt/JJ
by/IN
the/DT
government/NN
,/,
accepted/VBD
a/DT
35/CD
%/NN
cut/NN
in/IN
the/DT
3,800-man/JJ
work/NN
force/NN
./.
The/DT
mine/NN
is/VBZ
expected/VBN
to/TO
return/VB
to/TO
production/NN
in/IN
about/RB
a/DT
week/NN
./.
On/IN
Friday/NNP
,/,
selling/NN
dominated/VBD
the/DT
afternoon/NN
``/``
curb/NN
''/''
session/NN
in/IN
London/NNP
,/,
which/WDT
takes/VBZ
place/NN
at/IN
noon/NN
EDT/NNP
./.
The/DT
premium/NN
of/IN
cash/NN
copper/NN
to/TO
the/DT
three-month/JJ
forward/JJ
offerings/NNS
narrowed/VBD
,/,
indicating/VBG
weaker/JJR
demand/NN
for/IN
cash/NN
copper/NN
./.
Long-term/JJ
support/NN
for/IN
the/DT
December/NNP
contract/NN
was/VBD
believed/VBN
to/TO
be/VB
at/IN
$/$
1.25/CD
a/DT
pound/NN
./.
A/DT
technical/JJ
analyst/NN
said/VBD
there/EX
were/VBD
a/DT
number/NN
of/IN
stop-loss/JJ
orders/NNS
under/IN
that/DT
level/NN
that/WDT
were/VBD
touched/VBN
off/RP
when/WRB
the/DT
contract/NN
's/POS
price/NN
fell/VBD
below/IN
it/PRP
./.
That/IN
brought/VBN
in/IN
considerable/JJ
fund/NN
selling/NN
,/,
which/WDT
continued/VBD
until/IN
the/DT
close/NN
of/IN
trading/NN
./.
``/``
In/IN
general/JJ
,/,
it/PRP
was/VBD
a/DT
bearish/JJ
close/NN
,/,
''/''
said/VBD
Ben/NNP
Hanauer/NNP
,/,
a/DT
copper/NN
trader/NN
at/IN
Rudolph/NNP
Wolff/NNP
&/CC
Co./NNP
,/,
a/DT
major/JJ
commodities/NNS
trading/NN
and/CC
brokerage/NN
firm/NN
./.
But/CC
whether/IN
this/DT
price/NN
break/NN
has/VBZ
implications/NNS
for/IN
this/DT
week/NN
,/,
he/PRP
said/VBD
,/,
``/``
we/PRP
will/MD
know/VB
more/RBR
when/WRB
the/DT
London/NNP
Metal/NNP
Exchange/NNP
copper/NN
stock/NN
levels/NNS
are/VBP
released/VBN
Monday/NNP
morning/NN
./.
''/''
Another/DT
analyst/NN
said/VBD
he/PRP
expected/VBD
LME/NNP
inventories/NNS
to/TO
be/VB
down/RB
by/IN
about/RB
15,000/CD
tons/NNS
when/WRB
the/DT
weekly/JJ
report/NN
is/VBZ
issued/VBN
./.
Bernard/NNP
Savaiko/NNP
,/,
senior/JJ
commodities/NNS
analyst/NN
at/IN
PaineWebber/NNP
Inc./NNP
,/,
said/VBD
that/IN
when/WRB
traders/NNS
saw/VBD
the/DT
market/NN
was/VBD
n't/RB
reacting/VBG
positively/RB
to/TO
the/DT
forecasts/NNS
of/IN
lower/JJR
LME/NNP
stocks/NNS
,/,
they/PRP
perceived/VBD
a/DT
bearish/JJ
sign/NN
./.
He/PRP
also/RB
noted/VBD
that/IN
the/DT
Japanese/NNS
,/,
who/WP
had/VBD
been/VBN
buying/VBG
at/IN
prices/NNS
just/RB
above/IN
the/DT
$/$
1.25/CD
level/NN
,/,
apparently/RB
pulled/VBD
back/RB
from/IN
the/DT
market/NN
on/IN
Friday/NNP
./.
Mr./NNP
Savaiko/NNP
said/VBD
he/PRP
sees/VBZ
a/DT
possibility/NN
of/IN
the/DT
December/NNP
contract/NN
dropping/VBG
to/TO
$/$
1.05/CD
a/DT
pound/NN
./.
Hewlett-Packard/NNP
Co./NNP
will/MD
announce/VB
today/NN
a/DT
software/NN
program/NN
that/WDT
allows/VBZ
computers/NNS
in/IN
a/DT
network/NN
to/TO
speed/VB
up/RP
computing/NN
tasks/NNS
by/IN
sending/VBG
the/DT
tasks/NNS
to/TO
each/DT
other/JJ
./.
Called/VBD
Task/NNP
Broker/NNP
,/,
the/DT
program/NN
acts/VBZ
something/NN
like/IN
an/DT
auctioneer/NN
among/IN
a/DT
group/NN
of/IN
computers/NNS
wired/VBN
together/RB
./.
If/IN
a/DT
machine/NN
has/VBZ
a/DT
big/JJ
computing/NN
task/NN
,/,
Task/NNP
Broker/NNP
asks/VBZ
other/JJ
computers/NNS
in/IN
the/DT
network/NN
for/IN
``/``
bids/NNS
''/''
on/IN
the/DT
job/NN
./.
It/PRP
then/RB
determines/VBZ
which/WDT
machine/NN
is/VBZ
free/JJ
to/TO
do/VB
the/DT
task/NN
most/RBS
quickly/RB
and/CC
sends/VBZ
the/DT
task/NN
to/TO
that/DT
machine/NN
./.
Hewlett-Packard/NNP
claims/VBZ
that/IN
the/DT
software/NN
allows/VBZ
a/DT
network/NN
to/TO
run/VB
three/CD
times/NNS
as/IN
many/JJ
tasks/NNS
as/IN
conventional/JJ
networks/NNS
and/CC
will/MD
run/VB
each/DT
task/NN
twice/RB
as/IN
fast/JJ
./.
The/DT
new/JJ
Hewlett-Packard/NNP
program/NN
,/,
said/VBD
analyst/NN
John/NNP
McCarthy/NNP
at/IN
Forrester/NNP
Research/NNP
Inc./NNP
,/,
a/DT
computer-market/JJ
research/NN
company/NN
,/,
``/``
is/VBZ
a/DT
key/JJ
building/NN
block/NN
as/IN
people/NNS
move/VBP
to/TO
this/DT
new/JJ
model/NN
of/IN
distributed/VBN
processing/NN
./.
''/''
In/IN
today/NN
's/POS
computer/NN
networks/NNS
,/,
some/DT
machines/NNS
often/RB
sit/VBP
idle/JJ
while/IN
others/NNS
are/VBP
overtaxed/VBN
./.
With/IN
the/DT
Hewlett-Packard/NNP
program/NN
,/,
he/PRP
said/VBD
,/,
``/``
You/PRP
get/VBP
more/JJR
bang/NN
for/IN
the/DT
buck/NN
you/PRP
've/VBP
spent/VBN
on/IN
computers/NNS
./.
''/''
The/DT
program/NN
,/,
which/WDT
will/MD
be/VB
shipped/VBN
in/IN
January/NNP
1990/CD
,/,
runs/VBZ
on/IN
the/DT
Unix/NNP
operating/NN
system/NN
./.
Hewlett-Packard/NNP
will/MD
charge/VB
$/$
5,000/CD
for/IN
a/DT
license/NN
covering/VBG
10/CD
users/NNS
./.
The/DT
program/NN
now/RB
works/VBZ
on/IN
all/DT
Hewlett-Packard/NNP
and/CC
Apollo/NNP
workstations/NNS
and/CC
on/IN
computers/NNS
made/VBN
by/IN
Multiflow/NNP
Computer/NNP
Inc./NNP
of/IN
Branford/NNP
,/,
Conn/NNP
./.
Hewlett-Packard/NNP
said/VBD
it/PRP
will/MD
sell/VB
versions/NNS
later/RBR
next/JJ
year/NN
that/IN
run/VBP
on/IN
Sun/NNP
Microsystems/NNP
Inc./NNP
and/CC
Digital/NNP
Equipment/NNP
Corp./NNP
machines/NNS
./.
The/DT
Task/NNP
Broker/NNP
differs/VBZ
from/IN
other/JJ
programs/NNS
that/WDT
spread/VBP
computing/VBG
tasks/NNS
around/IN
a/DT
network/NN
./.
A/DT
previously/RB
available/JJ
program/NN
called/VBN
Network/NNP
Computing/NNP
System/NNP
,/,
developed/VBN
by/IN
Hewlett-Packard/NNP
's/POS
Apollo/NNP
division/NN
,/,
for/IN
instance/NN
,/,
takes/VBZ
a/DT
task/NN
and/CC
splits/VBZ
it/PRP
up/RP
into/IN
parts/NNS
,/,
divvying/VBG
up/RP
those/DT
parts/NNS
to/TO
several/JJ
computers/NNS
in/IN
a/DT
network/NN
for/IN
simultaneous/JJ
processing/NN
./.
But/CC
programs/NNS
in/IN
individual/JJ
computers/NNS
must/MD
be/VB
revised/VBN
in/IN
order/NN
to/TO
work/VB
with/IN
that/DT
system/NN
./.
Applications/NNS
wo/MD
n't/RB
have/VB
to/TO
be/VB
rewritten/VBN
to/TO
work/VB
with/IN
Task/NNP
Broker/NNP
,/,
Hewlett-Packard/NNP
said/VBD
,/,
and/CC
the/DT
user/NN
of/IN
a/DT
computer/NN
wo/MD
n't/RB
be/VB
able/JJ
to/TO
tell/VB
that/IN
another/DT
machine/NN
is/VBZ
doing/VBG
the/DT
work/NN
./.
The/DT
Task/NNP
Broker/NNP
``/``
turns/VBZ
that/DT
network/NN
into/IN
--/:
as/RB
far/RB
as/IN
the/DT
user/NN
is/VBZ
concerned/VBN
--/:
one/CD
giant/JJ
computer/NN
,/,
''/''
said/VBD
Bill/NNP
Kay/NNP
,/,
general/JJ
manager/NN
of/IN
Hewlett-Packard/NNP
's/POS
workstation/NN
group/NN
./.
Price/NN
wars/NNS
between/IN
the/DT
fast-food/NN
giants/NNS
are/VBP
starting/VBG
to/TO
clobber/VB
the/DT
fast-food/NN
little/JJ
guys/NNS
:/:
the/DT
franchisees/NNS
./.
``/``
When/WRB
elephants/NNS
start/VB
fighting/VBG
,/,
ants/NNS
get/VB
killed/VBN
,/,
''/''
says/VBZ
Murray/NNP
Riese/NNP
,/,
co-owner/NN
of/IN
National/NNP
Restaurants/NNP
,/,
a/DT
New/NNP
York/NNP
franchisee/NN
for/IN
Pizza/NNP
Hut/NNP
,/,
Roy/NNP
Rogers/NNP
and/CC
other/JJ
chains/NNS
./.
As/IN
hamburger/NN
and/CC
pizza/NN
outlets/NNS
saturate/VB
one/CD
area/NN
after/IN
another/DT
,/,
franchisers/NNS
are/VBP
struggling/VBG
desperately/RB
for/IN
market/NN
share/NN
,/,
slashing/VBG
prices/NNS
and/CC
stepping/VBG
up/IN
costly/JJ
promotions/NNS
./.
The/DT
fight/NN
is/VBZ
putting/VBG
a/DT
tight/JJ
squeeze/NN
on/IN
profits/NNS
of/IN
many/JJ
,/,
threatening/VBG
to/TO
drive/VB
the/DT
smallest/JJS
ones/NNS
out/IN
of/IN
business/NN
and/CC
straining/VBG
relations/NNS
between/IN
the/DT
national/JJ
fast-food/NN
chains/NNS
and/CC
their/PRP$
franchisees/NNS
./.
The/DT
chains/NNS
``/``
used/VBN
to/TO
offer/VB
discounts/NNS
during/IN
winter/NN
when/WRB
business/NN
was/VBD
slow/JJ
,/,
but/CC
in/IN
the/DT
last/JJ
year/NN
or/CC
so/RB
,/,
discounting/VBG
has/VBZ
become/VBN
a/DT
12-month/JJ
thing/NN
,/,
''/''
says/VBZ
Donald/NNP
Harty/NNP
,/,
president/NN
of/IN
Charisma/NNP
Group/NNP
Inc./NNP
,/,
a/DT
New/NNP
York/NNP
franchisee/NN
of/IN
Grand/NNP
Metropolitan/NNP
PLC/NNP
's/POS
Burger/NNP
King/NNP
chain/NN
./.
Though/NNP
Charisma/NNP
's/POS
sales/NNS
are/VBP
up/IN
slightly/RB
this/DT
year/NN
,/,
Mr./NNP
Harty/NNP
says/VBZ
profits/NNS
will/MD
be/VB
flat/JJ
or/CC
lower/JJR
./.
And/CC
Bill/NNP
Konopnicki/NNP
,/,
a/DT
Safford/NNP
,/,
Ariz./NNP
,/,
licensee/NN
of/IN
McDonald/NN
's/POS
Corp./NN
who/WP
is/VBZ
chairman/NN
of/IN
the/DT
company/NN
's/POS
National/NNP
Operators/NNP
Advisory/NNP
Board/NNP
,/,
says/VBZ
some/DT
fast-food/NN
outlets/NNS
``/``
could/MD
be/VB
in/IN
serious/JJ
trouble/NN
,/,
based/VBN
on/IN
the/DT
amount/NN
of/IN
discounting/VBG
that/DT
seems/VBZ
to/TO
be/VB
going/VBG
on/IN
./.
''/''
Until/IN
recently/RB
,/,
the/DT
huge/JJ
fast-food/NN
industry/NN
,/,
with/IN
sales/NNS
of/IN
about/RB
$/$
60.1/CD
billion/CD
last/JJ
year/NN
,/,
kept/VBD
price-skirmishing/JJ
to/TO
a/DT
minimum/NN
./.
But/CC
early/RB
this/DT
year/NN
,/,
PepsiCo/NNP
Inc./NNP
's/POS
Taco/NNP
Bell/NNP
unit/NN
and/CC
Wendy/NN
's/POS
International/NNP
Inc./NNP
slashed/VBD
prices/NNS
and/CC
stepped/VBD
up/IN
promotions/NNS
,/,
says/VBZ
John/NNP
Rohs/NNP
,/,
an/DT
analyst/NN
for/IN
Wertheim/NNP
Schroder/NNP
&/CC
Co/NNP
./.
That/WDT
brought/VBD
a/DT
chain/NN
reaction/NN
in/IN
the/DT
industry/NN
./.
The/DT
situation/NN
was/VBD
further/RB
aggravated/VBN
early/RB
this/DT
month/NN
,/,
when/WRB
McDonald/NN
's/VBZ
set/VBN
plans/NNS
to/TO
heat/VB
up/IN
the/DT
discounting/VBG
by/IN
offering/VBG
coupons/NNS
./.
It/PRP
also/RB
decided/VBD
to/TO
go/VB
national/JJ
with/IN
pizza/NN
,/,
which/WDT
it/PRP
has/VBZ
been/VBN
test-marketing/JJ
./.
Now/RB
,/,
two-for-one/JJ
deals/NNS
on/IN
pizza/NN
are/VBP
common/JJ
;/:
so/RB
are/VBP
99-cent/CD
specials/NNS
on/IN
sandwiches/NNS
normally/RB
priced/VBN
twice/RB
as/IN
high/JJ
./.
The/DT
discounting/VBG
,/,
say/VB
fast-food/NN
operators/NNS
,/,
occurs/VBZ
on/IN
a/DT
scale/NN
and/CC
with/IN
a/DT
frequency/NN
they/PRP
have/VBP
n't/RB
seen/VBN
before/IN
./.
The/DT
result/NN
is/VBZ
that/IN
some/DT
franchisees/NNS
are/VBP
running/VBG
hard/RB
just/RB
to/TO
stay/VB
even/RB
,/,
laying/VBG
off/RP
middle/JJ
managers/NNS
and/CC
working/VBG
harder/RB
to/TO
make/VB
less/JJR
./.
Joe/NNP
Mack/NNP
,/,
a/DT
district/NN
manager/NN
for/IN
Cormack/NNP
Enterprises/NNP
Inc./NNP
,/,
a/DT
Burger/NNP
King/NNP
operator/NN
in/IN
Omaha/NNP
,/,
Neb./NNP
,/,
says/VBZ
discounting/VBG
is/VBZ
so/RB
prevalent/JJ
that/IN
``/``
we/PRP
have/VB
to/TO
serve/VB
15/CD
%/NN
to/TO
20/CD
%/NN
more/JJR
customers/NNS
''/''
to/TO
keep/VB
sales/JJ
level/NN
./.
``/``
It/PRP
's/VBZ
almost/RB
as/IN
if/IN
you/PRP
're/VBP
doing/VBG
extra/JJ
work/NN
to/TO
give/VB
away/RB
the/DT
food/NN
,/,
''/''
he/PRP
says/VBZ
./.
Alan/NNP
D'Agosto/NNP
,/,
president/NN
of/IN
Panda/NN
's/POS
Inc./NN
,/,
an/DT
operator/NN
of/IN
Arby/NN
's/POS
restaurants/NNS
in/IN
Omaha/NN
,/,
says/VBZ
:/:
``/``
All/DT
we/PRP
're/VBP
doing/VBG
is/VBZ
keeping/VBG
the/DT
customers/NNS
coming/VBG
,/,
but/CC
we/PRP
are/VBP
n't/RB
increasing/VBG
sales/NNS
./.
''/''
With/IN
fast-food/NN
outlets/NNS
on/IN
every/DT
corner/NN
,/,
he/PRP
,/,
like/IN
many/JJ
,/,
does/VBZ
n't/RB
think/VB
he/PRP
has/VBZ
a/DT
choice/NN
in/IN
the/DT
price/NN
war/NN
:/:
``/``
Our/PRP$
customers/NNS
say/VB
that/IN
they/PRP
wo/MD
n't/RB
go/VB
into/IN
a/DT
fast-food/NN
store/NN
unless/IN
they/PRP
get/VB
a/DT
coupon/NN
./.
''/''
If/IN
the/DT
battle/NN
continues/VBZ
much/RB
longer/JJR
,/,
many/JJ
fast-food/NN
businesses/NNS
will/MD
close/VB
or/CC
merge/VB
,/,
predicts/VBZ
Vincent/NNP
Morrissey/NNP
,/,
who/WP
owns/VBZ
a/DT
string/NN
of/IN
Kentucky/NNP
Fried/NNP
Chicken/NNP
stores/NNS
in/IN
the/DT
Midwest/JJS
./.
``/``
The/DT
industry/NN
is/VBZ
overbuilt/JJ
,/,
''/''
he/PRP
says/VBZ
./.
``/``
Fast-food/NN
franchisers/NNS
have/VB
managed/VBN
to/TO
squeeze/VB
in/IN
stores/NNS
into/IN
every/DT
corner/NN
available/JJ
./.
''/''
The/DT
National/NNP
Restaurant/NNP
Association/NNP
says/VBZ
quick-service/JJ
restaurant/NN
units/NNS
in/IN
the/DT
U.S./NNP
rose/VBD
14/CD
%/NN
to/TO
131,146/CD
between/IN
1983/CD
and/CC
1987/CD
,/,
the/DT
last/JJ
year/NN
for/IN
which/WDT
figures/NNS
are/VBP
available/JJ
./.
With/IN
the/DT
market/NN
so/RB
crowded/VBN
,/,
says/VBZ
a/DT
spokesman/NN
for/IN
Wendy/NN
's/VBZ
in/IN
Columbus/NNP
,/,
Ohio/NNP
,/,
``/``
If/IN
you/PRP
're/VBP
doing/VBG
well/RB
,/,
you/PRP
're/VBP
doing/VBG
well/RB
at/IN
someone/NN
else/RB
's/POS
expense/NN
./.
''/''
Simply/RB
put/VBN
,/,
there/EX
is/VBZ
n't/RB
enough/JJ
business/NN
for/IN
every/DT
store/NN
to/TO
grow/VB
./.
According/VBG
to/TO
Mr./NNP
Rohs/NNP
,/,
inflation-adjusted/CD
,/,
same-store/CD
sales/NNS
at/IN
company-owned/JJ
Wendy/NN
's/POS
units/NNS
in/IN
the/DT
U.S./NNP
have/VB
trailed/VBN
year-earlier/JJ
levels/NNS
throughout/IN
1989/CD
,/,
except/IN
for/IN
August/NNP
./.
``/``
McDonald/VB
's/POS
has/VBZ
also/RB
been/VBN
running/VBG
negative/JJ
all/DT
year/NN
,/,
''/''
the/DT
analyst/NN
says/VBZ
./.
Spokesmen/NNP
for/IN
Wendy/NNP
's/POS
and/CC
McDonald/NNP
's/POS
criticized/VBN
Mr./NNP
Rohs/NNP
's/POS
calculations/NNS
./.
Jack/NNP
Greenberg/NNP
,/,
executive/JJ
vice/NN
president/NN
and/CC
chief/JJ
financial/JJ
officer/NN
of/IN
McDonald/NNP
's/POS
,/,
says/VBZ
the/DT
company/NN
does/VBZ
n't/RB
compute/VB
,/,
much/RB
less/RBR
disclose/VB
,/,
inflation-adjusted/JJ
,/,
same-store/JJ
sales/NNS
./.
He/PRP
adds/VBZ
that/IN
short-term/JJ
comparisons/NNS
``/``
can/MD
be/VB
very/RB
misleading/JJ
because/IN
of/IN
differences/NNS
in/IN
timing/NN
of/IN
marketing/VBG
programs/NNS
from/IN
year/NN
to/TO
year/NN
./.
''/''
Profit/NN
margins/NNS
at/IN
company-owned/JJ
McDonald/NN
's/POS
outlets/NNS
in/IN
the/DT
U.S./NNP
``/``
are/VBP
holding/VBG
up/IN
quite/RB
nicely/RB
,/,
''/''
says/VBZ
Mr./NNP
Greenberg/NNP
./.
Profits/NNS
of/IN
franchisees/NNS
have/VBP
n't/RB
been/VBN
higher/JJR
since/IN
the/DT
mid-1970s/CD
,/,
he/PRP
adds/VBZ
./.
But/CC
Mr./NNP
Greenberg/NNP
's/POS
sanguine/JJ
outlook/NN
is/VBZ
n't/RB
matched/VBN
by/IN
many/JJ
fast-food/NN
industry/NN
observers/NNS
./.
Smaller/JJR
chains/NNS
and/CC
single-store/JJ
operators/NNS
will/MD
be/VB
the/DT
first/JJ
to/TO
fail/VB
,/,
many/JJ
in/IN
the/DT
industry/NN
predict/VB
./.
Big/JJ
franchise/NN
groups/NNS
``/``
can/MD
ride/VB
out/IN
the/DT
storm/NN
a/DT
lot/NN
longer/RB
,/,
''/''
says/VBZ
Mr./NNP
Harty/NNP
,/,
the/DT
Burger/NNP
King/NNP
operator/NN
in/IN
New/NNP
York/NNP
./.
The/DT
prolonged/VBN
price/NN
pressures/NNS
are/VBP
driving/VBG
a/DT
wedge/NN
between/IN
some/DT
franchisers/NNS
and/CC
their/PRP$
franchisees/NNS
./.
Mr./NNP
Morrissey/NNP
,/,
the/DT
Kentucky/NNP
Fried/NNP
Chicken/NNP
franchisee/NN
,/,
notes/VBZ
that/IN
most/JJS
franchise/NN
owners/NNS
must/MD
absorb/VB
increases/NNS
in/IN
expenses/NNS
without/IN
any/DT
cut/NN
in/IN
the/DT
royalties/NNS
,/,
or/CC
portion/NN
of/IN
sales/NNS
,/,
that/IN
they/PRP
must/MD
pay/VB
franchisers/NNS
./.
Franchisees/NNS
ca/MD
n't/RB
be/VB
forced/VBN
to/TO
go/VB
along/IN
with/IN
a/DT
franchiser/NN
's/POS
discounting/VBG
./.
But/CC
once/RB
a/DT
franchisee/NN
agrees/VBZ
to/TO
a/DT
promotional/JJ
program/NN
,/,
the/DT
franchiser/NN
can/MD
demand/VB
full/JJ
participation/NN
to/TO
the/DT
very/JJ
end/NN
,/,
says/VBZ
Lew/NNP
Rudnick/NNP
,/,
a/DT
principal/NN
of/IN
Rudnick/NNP
&/CC
Wolfe/NNP
,/,
a/DT
Chicago/NNP
law/NN
firm/NN
with/IN
franchise/NN
industry/NN
clients/NNS
./.
He/PRP
says/VBZ
courts/NNS
have/VB
held/VBN
that/IN
antitrust/JJ
considerations/NNS
are/VBP
outweighed/VBN
in/IN
such/JJ
cases/NNS
by/IN
the/DT
need/NN
to/TO
protect/VB
consumers/NNS
from/IN
deceptive/JJ
marketing/NN
./.
In/IN
any/DT
case/NN
,/,
many/JJ
franchisees/NNS
,/,
in/IN
order/NN
to/TO
stay/VB
on/IN
good/JJ
terms/NNS
with/IN
franchisers/NNS
,/,
routinely/RB
go/VB
along/IN
with/IN
promotions/NNS
./.
Says/VBZ
Mr./NNP
Riese/NNP
of/IN
National/NNP
Restaurants/NNP
:/:
``/``
If/IN
you/PRP
resisted/VBD
on/IN
prices/NNS
,/,
maybe/RB
you/PRP
would/MD
never/RB
get/VB
that/DT
telephone/NN
call/VB
about/IN
a/DT
new/JJ
franchise/NN
./.
''/''
Companies/NNS
listed/VBN
below/IN
reported/VBN
quarterly/JJ
profit/NN
substantially/RB
different/JJ
from/IN
the/DT
average/NN
of/IN
analysts/NNS
'/POS
estimates/NNS
./.
The/DT
companies/NNS
are/VBP
followed/VBN
by/IN
at/IN
least/JJS
three/CD
analysts/NNS
,/,
and/CC
had/VBD
a/DT
minimum/NN
five-cent/JJ
change/NN
in/IN
actual/JJ
earnings/NNS
per/IN
share/NN
./.
Estimated/VBN
and/CC
actual/JJ
results/NNS
involving/VBG
losses/NNS
are/VBP
omitted/VBN
./.
The/DT
percent/NN
difference/NN
compares/VBZ
actual/JJ
profit/NN
with/IN
the/DT
30-day/CD
estimate/NN
where/WRB
at/IN
least/JJS
three/CD
analysts/NNS
have/VB
issues/NNS
forecasts/NNS
in/IN
the/DT
past/JJ
30/CD
days/NNS
./.
Otherwise/RB
,/,
actual/JJ
profit/NN
is/VBZ
compared/VBN
with/IN
the/DT
300-day/CD
estimate/NN
./.
Source/NN
:/:
Zacks/NNP
Investment/NNP
Research/NNP
Companies/NNS
listed/VBN
below/IN
reported/VBN
quarterly/JJ
profit/NN
substantially/RB
different/JJ
from/IN
the/DT
average/NN
of/IN
analysts/NNS
'/POS
estimates/NNS
./.
The/DT
companies/NNS
are/VBP
followed/VBN
by/IN
at/IN
least/JJS
three/CD
analysts/NNS
,/,
and/CC
had/VBD
a/DT
minimum/NN
five-cent/JJ
change/NN
in/IN
actual/JJ
earnings/NNS
per/IN
share/NN
./.
Estimated/VBN
and/CC
actual/JJ
results/NNS
involving/VBG
losses/NNS
are/VBP
omitted/VBN
./.
The/DT
percent/NN
difference/NN
compares/VBZ
actual/JJ
profit/NN
with/IN
the/DT
30-day/CD
estimate/NN
where/WRB
at/IN
least/JJS
three/CD
analysts/NNS
have/VB
issues/NNS
forecasts/NNS
in/IN
the/DT
past/JJ
30/CD
days/NNS
./.
Otherwise/RB
,/,
actual/JJ
profit/NN
is/VBZ
compared/VBN
with/IN
the/DT
300-day/CD
estimate/NN
./.
Source/NN
:/:
Zacks/NNP
Investment/NNP
Research/NNP
CalMat/NNP
Co./NNP
said/VBD
it/PRP
completed/VBD
a/DT
$/$
32.8/CD
million/CD
sale/NN
of/IN
assets/NNS
from/IN
its/PRP$
Los/NNP
Angeles/NNP
area/NN
real/JJ
estate/NN
portfolio/NN
for/IN
net/JJ
income/NN
of/IN
$/$
12/CD
million/CD
./.
CalMat/NN
said/VBD
the/DT
sale/NN
is/VBZ
part/NN
of/IN
its/PRP$
previously/RB
announced/VBN
plan/NN
to/TO
sell/VB
much/JJ
of/IN
its/PRP$
real/JJ
estate/NN
holdings/NNS
to/TO
focus/VB
on/IN
its/PRP$
core/NN
business/NN
of/IN
mining/VBG
and/CC
producing/VBG
asphalt/NN
,/,
concrete/NN
,/,
rock/NN
and/CC
sand/NN
./.
And/CC
you/PRP
thought/VBD
the/DT
only/JJ
reason/NN
to/TO
save/VB
your/PRP$
canceled/VBN
checks/NNS
was/VBD
to/TO
prepare/VB
for/IN
an/DT
IRS/NNP
audit/NN
./.
Reggie/NNP
Jackson/NNP
,/,
the/DT
retired/VBN
baseball/NN
star/NN
,/,
has/VBZ
found/VBN
another/DT
use/NN
for/IN
them/PRP
./.
Mr./NNP
Jackson/NNP
,/,
who/WP
won/VBD
the/DT
nickname/NN
``/``
Mr./NNP
October/NNP
''/''
for/IN
his/PRP$
World/NNP
Series/NNP
exploits/VBZ
,/,
is/VBZ
selling/VBG
some/DT
of/IN
his/PRP$
canceled/VBN
checks/NNS
to/TO
autograph/VB
collectors/NNS
through/IN
a/DT
dealer/NN
for/IN
as/RB
much/JJ
as/IN
$/$
500/CD
each/DT
./.
Dealers/NNS
say/VB
the/DT
budding/VBG
trade/NN
in/IN
Mr./NNP
Jackson/NNP
's/POS
canceled/VBN
checks/NNS
is/VBZ
unusual/JJ
./.
``/``
I/PRP
do/VBP
n't/RB
know/VB
of/IN
any/DT
living/VBG
ballplayer/NN
that/WDT
's/VBZ
ever/RB
done/VBN
it/PRP
,/,
''/''
says/VBZ
Jack/NNP
Smalling/NNP
,/,
a/DT
dealer/NN
in/IN
Ames/NNP
,/,
Iowa/NNP
,/,
and/CC
a/DT
recognized/VBN
expert/NN
in/IN
the/DT
field/NN
of/IN
baseball/NN
autographs/NNS
./.
An/DT
initial/JJ
batch/NN
of/IN
Mr./NNP
Jackson/NNP
's/POS
checks/NNS
was/VBD
on/IN
sale/NN
at/IN
a/DT
baseball-card/JJ
show/NN
held/VBN
in/IN
San/NNP
Francisco/NNP
over/IN
Labor/NNP
Day/NNP
weekend/NN
./.
Mr./NNP
Jackson/NNP
showed/VBD
up/IN
at/IN
the/DT
affair/NN
to/TO
sign/VB
autographs/NNS
for/IN
a/DT
fee/NN
as/RB
well/RB
./.
``/``
For/IN
someone/NN
who/WP
has/VBZ
everything/NN
else/RB
--/:
Reggie/NN
's/POS
jersey/NN
,/,
cap/NN
and/CC
cards/NNS
--/:
his/PRP$
checks/NNS
might/MD
be/VB
a/DT
nice/JJ
addition/NN
,/,
''/''
says/VBZ
William/NNP
Vizas/NNP
,/,
owner/NN
of/IN
Bill/NNP
's/POS
Sports/NNP
Collectibles/NNP
in/IN
Denver/NNP
,/,
who/WP
examined/VBD
the/DT
checks/NNS
at/IN
the/DT
San/NNP
Francisco/NNP
card/NN
show/NN
./.
For/IN
years/NNS
,/,
the/DT
canceled/VBN
checks/NNS
of/IN
a/DT
small/JJ
number/NN
of/IN
well-known/JJ
baseball/NN
players/NNS
have/VB
been/VBN
bought/VBN
and/CC
sold/VBN
./.
But/CC
these/DT
players/NNS
were/VBD
dead/JJ
./.
``/``
Maybe/RB
three/CD
years/NNS
ago/RB
,/,
there/EX
were/VBD
a/DT
lot/NN
of/IN
{/(
Ty/NN
Cobbs/NNS
in/IN
the/DT
hobby/NN
,/,
and/CC
awhile/RB
back/RB
there/EX
were/VBD
Babe/NNP
Ruth/NNP
checks/NNS
,/,
''/''
says/VBZ
Mr./NNP
Smalling/NNP
./.
However/RB
,/,
the/DT
thought/NN
of/IN
a/DT
living/VBG
player/NN
selling/VBG
his/PRP$
checks/NNS
rubs/VBZ
some/DT
people/NNS
the/DT
wrong/JJ
way/NN
./.
``/``
Maybe/RB
I/PRP
'm/VBP
a/DT
little/RB
stuffy/JJ
,/,
but/CC
I/PRP
would/MD
n't/RB
sell/VB
them/PRP
,/,
''/''
sniffs/VBZ
Bob/NNP
Machon/NNP
,/,
owner/NN
of/IN
Papa/NN
's/POS
Sports/NNP
Cards/NNP
in/IN
Menlo/NNP
Park/NNP
,/,
Calif/NNP
./.
``/``
Who/WP
knows/VBZ
how/WRB
much/RB
they/PRP
'll/MD
be/VB
worth/JJ
100/CD
years/NNS
from/IN
now/RB
?/.
''/''
And/CC
Mr./NNP
Smalling/NNP
does/VBZ
n't/RB
believe/VB
they/PRP
're/VBP
worth/JJ
all/DT
that/DT
much/JJ
now/RB
./.
``/``
I/PRP
do/VBP
n't/RB
think/VB
the/DT
checks/NNS
are/VBP
worth/JJ
$/$
15/CD
apiece/RB
,/,
''/''
he/PRP
says/VBZ
./.
Why/WRB
Mr./NNP
Jackson/NNP
,/,
who/WP
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
,/,
has/VBZ
made/VBN
some/DT
of/IN
his/PRP$
checks/NNS
available/JJ
for/IN
sale/NN
is/VBZ
n't/RB
clear/JJ
./.
He/PRP
probably/RB
has/VBZ
n't/RB
done/VBN
it/PRP
for/IN
the/DT
cash/NN
./.
``/``
I/PRP
would/MD
say/VB
he/PRP
's/VBZ
definitely/RB
not/RB
in/IN
need/NN
of/IN
money/NN
,/,
''/''
says/VBZ
Matt/NNP
Merola/NNP
,/,
an/DT
agent/NN
of/IN
Mr./NNP
Jackson/NNP
's/VBZ
based/VBN
in/IN
New/NNP
York/NNP
./.
``/``
He/PRP
has/VBZ
good/JJ
investments/NNS
./.
''/''
And/CC
Mr./NNP
Jackson/NNP
probably/RB
has/VBZ
opened/VBN
new/JJ
checking/VBG
accounts/NNS
,/,
too/RB
./.
Or/CC
at/IN
least/JJS
he/PRP
should/MD
./.
``/``
I/PRP
assume/VB
those/DT
accounts/NNS
are/VBP
closed/VBN
,/,
''/''
says/VBZ
Mr./NNP
Smalling/NNP
,/,
referring/VBG
to/TO
the/DT
accounts/NNS
of/IN
the/DT
canceled/VBN
checks/NNS
./.
``/``
I/PRP
do/VBP
n't/RB
think/VB
he/PRP
'd/MD
want/VB
to/TO
give/VB
out/IN
his/PRP$
current/JJ
account/NN
numbers/NNS
./.
''/''
USX/NNP
Corp./NNP
and/CC
its/PRP$
Japanese/NNP
partner/NN
,/,
Kobe/NNP
Steel/NNP
Ltd./NNP
,/,
agreed/VBD
to/TO
form/VB
a/DT
joint/JJ
venture/NN
to/TO
build/VB
a/DT
new/JJ
plant/NN
to/TO
produce/VB
hot-dipped/JJ
galvanized/JJ
sheet/NN
products/NNS
,/,
mainly/RB
for/IN
the/DT
automotive/JJ
market/NN
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
for/IN
the/DT
plant/NN
,/,
which/WDT
will/MD
have/VB
annual/JJ
capacity/NN
of/IN
600,000/CD
tons/NNS
./.
The/DT
move/NN
by/IN
the/DT
nation/NN
's/POS
largest/JJS
steelmaker/NN
follows/VBZ
a/DT
string/NN
of/IN
earlier/JJR
announcements/NNS
by/IN
other/JJ
major/JJ
steel/NN
companies/NNS
./.
Bethlehem/NNP
Steel/NNP
Corp./NNP
,/,
LTV/NNP
Corp./NNP
and/CC
Armco/NNP
Inc./NNP
all/DT
have/VB
plans/NNS
to/TO
build/VB
additional/JJ
lines/NNS
for/IN
such/JJ
coated/JJ
corrosion-resistant/JJ
steel/NN
./.
The/DT
surge/NN
in/IN
production/NN
,/,
analysts/NNS
say/VB
,/,
raises/VBZ
questions/NNS
about/IN
capacity/NN
outpacing/VBG
demand/NN
./.
They/PRP
note/VB
that/IN
most/JJS
of/IN
the/DT
new/JJ
plants/NNS
will/MD
come/VB
on/IN
line/NN
in/IN
1992/CD
,/,
when/WRB
the/DT
current/JJ
import/NN
trade/NN
restraint/NN
program/NN
ends/NNS
,/,
which/WDT
could/MD
result/VB
in/IN
more/JJR
imports/NNS
./.
``/``
There/EX
's/VBZ
too/RB
much/JJ
capacity/NN
,/,
''/''
contended/VBD
Charles/NNP
Bradford/NNP
,/,
an/DT
analyst/NN
with/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
./.
``/``
I/PRP
do/VBP
n't/RB
think/VB
there/EX
's/VBZ
anyone/NN
not/RB
building/VBG
one/CD
./.
''/''
He/PRP
does/VBZ
add/VB
,/,
however/RB
,/,
that/IN
transplanted/VBN
Japanese/NNP
car/NN
makers/NNS
are/VBP
boosting/VBG
the/DT
levels/NNS
of/IN
U.S.-made/JJ
steel/NN
in/IN
their/PRP$
autos/NNS
,/,
instead/RB
of/IN
relying/VBG
heavily/RB
on/IN
imported/VBN
steel/NN
./.
That/DT
trend/NN
could/MD
increase/VB
demand/VB
for/IN
hot-dipped/JJ
galvanized/JJ
sheet/NN
./.
The/DT
hot-dipped/JJ
galvanized/JJ
segment/NN
is/VBZ
one/CD
of/IN
the/DT
fastest-growing/JJ
and/CC
most/RBS
profitable/JJ
segments/NNS
of/IN
the/DT
steel/NN
market/NN
,/,
coveted/VBN
by/IN
all/DT
major/JJ
integrated/VBN
steelmakers/NNS
wanting/VBG
to/TO
maintain/VB
an/DT
edge/NN
over/IN
smaller/JJR
minimills/NNS
and/CC
reconstructed/JJ
mills/NNS
--/:
those/DT
spun/VBD
off/IN
to/TO
employees/NNS
./.
Indeed/RB
,/,
USX/NNP
said/VBD
it/PRP
expects/VBZ
the/DT
market/NN
for/IN
coated/JJ
sheet/NN
steel/NN
to/TO
reach/VB
12/CD
million/CD
tons/NNS
annually/RB
by/IN
1992/CD
,/,
compared/VBN
with/IN
10.2/CD
million/CD
tons/NNS
shipped/VBN
in/IN
1988/CD
./.
For/IN
the/DT
first/JJ
eight/CD
months/NNS
of/IN
1989/CD
,/,
analysts/NNS
say/VB
shipments/NNS
of/IN
hot-dipped/JJ
galvanized/JJ
steel/NN
increased/VBN
about/RB
8/CD
%/NN
from/IN
a/DT
year/NN
earlier/RB
,/,
while/IN
overall/JJ
steel/NN
shipments/NNS
were/VBD
up/IN
only/RB
2.4/CD
%/NN
./.
USX/NNP
and/CC
Kobe/NNP
Steel/NNP
hope/VB
to/TO
reach/VB
a/DT
definitive/JJ
agreement/NN
establishing/VBG
the/DT
50-50/CD
partnership/NN
by/IN
the/DT
end/NN
of/IN
the/DT
year/NN
,/,
with/IN
construction/NN
tentatively/RB
slated/VBN
for/IN
the/DT
spring/NN
of/IN
1990/CD
and/CC
production/NN
by/IN
1992/CD
./.
USX/NNP
already/RB
has/VBZ
six/CD
lines/NNS
in/IN
existing/VBG
plants/NNS
producing/VBG
hot-dipped/JJ
galvanized/JJ
steel/NN
,/,
but/CC
this/DT
marks/VBZ
the/DT
first/JJ
so-called/NN
greenfield/NN
plant/NN
for/IN
such/JJ
production/NN
./.
Moreover/RB
,/,
it/PRP
will/MD
boost/VB
by/IN
50/CD
%/NN
USX/NNP
's/POS
current/JJ
hot-dipped/JJ
capacity/NN
of/IN
1,275,000/CD
tons/NNS
./.
The/DT
company/NN
said/VBD
it/PRP
does/VBZ
n't/RB
expect/VB
the/DT
new/JJ
line/NN
's/POS
capacity/NN
to/TO
adversely/RB
affect/VB
the/DT
company/NN
's/POS
existing/VBG
hot-dipped/JJ
galvanizing/VBG
lines/NNS
./.
Steelmakers/NNS
have/VB
also/RB
been/VBN
adding/VBG
capacity/NN
of/IN
so-called/JJ
electrogalvanized/VBN
steel/NN
,/,
which/WDT
is/VBZ
another/DT
way/NN
to/TO
make/VB
coated/JJ
corrosion-resistant/JJ
steel/NN
./.
One/CD
of/IN
the/DT
advantages/NNS
of/IN
the/DT
hot-dipped/JJ
process/NN
is/VBZ
that/IN
it/PRP
allows/VBZ
the/DT
steel/NN
to/TO
be/VB
covered/VBN
with/IN
a/DT
thicker/JJR
coat/NN
of/IN
zinc/NN
more/RBR
quickly/RB
./.
ONCE/RB
YOU/PRP
MAKE/VB
UP/IN
your/PRP$
mind/NN
about/IN
an/DT
investment/NN
,/,
the/DT
rest/NN
is/VBZ
easy/JJ
,/,
right/JJ
?/.
You/PRP
just/RB
call/VB
your/PRP$
broker/NN
and/CC
say/VB
``/``
buy/VB
''/''
or/CC
``/``
sell/VB
./.
''/''
Dream/VB
on/IN
./.
There/EX
are/VBP
all/DT
sorts/NNS
of/IN
ways/NNS
to/TO
give/VB
buy/VB
and/CC
sell/VB
instructions/NNS
to/TO
a/DT
broker/NN
--/:
and/CC
just/RB
as/IN
many/JJ
ways/NNS
to/TO
get/VB
burned/VBN
if/IN
you/PRP
do/VBP
n't/RB
know/VB
what/WP
you/PRP
're/VBP
doing/VBG
./.
So/RB
here/RB
's/VBZ
a/DT
rundown/NN
of/IN
the/DT
most/RBS
common/JJ
types/NNS
of/IN
market/NN
orders/NNS
permitted/VBN
by/IN
the/DT
stock/NN
and/CC
commodity/NN
exchanges/NNS
./.
Two/CD
things/NNS
to/TO
keep/VB
in/IN
mind/NN
:/:
Not/RB
all/DT
exchanges/NNS
accept/VB
every/DT
type/NN
of/IN
order/NN
./.
And/CC
even/RB
when/WRB
a/DT
specific/NN
order/NN
is/VBZ
acceptable/JJ
to/TO
an/DT
exchange/NN
,/,
a/DT
brokerage/NN
firm/NN
can/MD
refuse/VB
to/TO
enter/VB
it/PRP
for/IN
a/DT
customer/NN
./.
Market/NNP
Order/NNP
:/:
This/DT
is/VBZ
probably/RB
the/DT
most/RBS
widely/RB
used/VBN
order/NN
--/:
and/CC
the/DT
one/CD
most/RBS
open/JJ
to/TO
abuse/VB
by/IN
unscrupulous/JJ
floor/NN
brokers/NNS
,/,
since/IN
it/PRP
imposes/VBZ
no/DT
price/NN
restrictions/NNS
./.
With/IN
a/DT
market/NN
order/NN
,/,
an/DT
investor/NN
tells/VBZ
a/DT
broker/NN
to/TO
buy/VB
or/CC
sell/VB
``/``
at/IN
the/DT
market/NN
./.
''/''
It/PRP
's/POS
like/IN
saying/VBG
,/,
``/``
get/VB
me/PRP
in/IN
now/RB
''/''
or/CC
``/``
get/VB
me/PRP
out/IN
now/RB
./.
''/''
For/IN
example/NN
,/,
if/IN
wheat/NN
is/VBZ
being/VBG
offered/VBN
at/IN
$/$
4.065/CD
and/CC
bid/VBD
at/IN
$/$
4.060/CD
,/,
a/DT
market/NN
order/NN
to/TO
buy/VB
would/MD
be/VB
filled/VBN
at/IN
the/DT
higher/JJR
price/NN
and/CC
a/DT
market/NN
order/NN
to/TO
sell/VB
at/IN
the/DT
lower/JJR
price/NN
./.
A/DT
recent/JJ
indictment/NN
alleges/VBZ
that/IN
some/DT
floor/NN
brokers/NNS
at/IN
the/DT
two/CD
largest/JJS
Chicago/NNP
commodity/NN
exchanges/NNS
used/VBD
market/NN
orders/NNS
to/TO
fill/VB
customers/NNS
'/POS
orders/NNS
at/IN
unfavorable/JJ
prices/NNS
by/IN
arranging/VBG
trades/NNS
with/IN
fellow/NN
brokers/NNS
./.
Profits/NNS
realized/VBD
from/IN
these/DT
trades/NNS
would/MD
then/RB
be/VB
shared/VBN
by/IN
the/DT
conspiring/VBG
brokers/NNS
./.
Limit/NNP
Order/NNP
:/:
Limit/NN
orders/NNS
are/VBP
used/VBN
when/WRB
investors/NNS
want/VB
to/TO
restrict/VB
the/DT
amount/NN
they/PRP
will/MD
receive/VB
or/CC
pay/VB
for/IN
an/DT
investment/NN
./.
Investors/NNS
do/VB
this/DT
by/IN
specifying/VBG
a/DT
minimum/NN
price/NN
at/IN
which/WDT
the/DT
investment/NN
may/MD
be/VB
sold/VBN
or/CC
the/DT
maximum/NN
price/NN
that/WDT
may/MD
be/VB
paid/VBN
for/IN
it/PRP
./.
Suppose/VB
an/DT
investor/NN
wants/VBZ
to/TO
sell/VB
a/DT
stock/NN
,/,
but/CC
not/RB
for/IN
less/JJR
than/IN
$/$
55/CD
./.
A/DT
limit/NN
order/NN
to/TO
sell/VB
could/MD
be/VB
entered/VBN
at/IN
that/DT
price/NN
./.
One/CD
risk/NN
:/:
Investors/NNS
may/MD
regret/VB
the/DT
restriction/NN
if/IN
the/DT
stock/NN
reaches/VBZ
54/CD
and/CC
then/RB
falls/VBZ
./.
Unless/IN
the/DT
market/NN
goes/VBZ
at/IN
least/JJS
one/CD
tick/NN
the/DT
smallest/JJS
price/NN
increment/NN
permitted/VBN
)/)
beyond/IN
the/DT
limit/NN
price/NN
,/,
investors/NNS
are/VBP
n't/RB
assured/VBN
of/IN
having/VBG
their/PRP$
orders/NNS
filled/VBD
because/IN
there/EX
may/MD
not/RB
be/VB
sufficient/JJ
trading/VBG
volume/NN
to/TO
permit/VB
filling/VBG
it/PRP
at/IN
the/DT
specified/VBN
price/NN
./.
Stop/NNP
Order/NNP
:/:
Stop/VB
orders/NNS
tell/VB
a/DT
floor/NN
broker/NN
to/TO
buy/VB
or/CC
sell/VB
an/DT
investment/NN
once/IN
the/DT
price/NN
reaches/VBZ
a/DT
certain/JJ
level/NN
./.
Once/RB
the/DT
price/NN
reaches/VBZ
that/DT
level/NN
,/,
a/DT
stop/NN
order/NN
turns/VBZ
into/IN
a/DT
market/NN
order/NN
,/,
and/CC
the/DT
order/NN
is/VBZ
filled/VBN
at/IN
whatever/WDT
price/NN
the/DT
broker/NN
can/MD
get/VB
./.
Stop/NN
orders/NNS
are/VBP
sometimes/RB
called/VBN
``/``
stop-loss/NN
''/''
orders/NNS
because/IN
they/PRP
are/VBP
frequently/RB
used/VBN
to/TO
protect/VB
profits/NNS
or/CC
limit/NN
losses/NNS
./.
While/IN
stop/NN
orders/NNS
sound/VB
similar/JJ
to/TO
limit/NN
orders/NNS
,/,
there/EX
is/VBZ
a/DT
difference/NN
:/:
Sell/VB
stops/NNS
must/MD
be/VB
entered/VBN
at/IN
a/DT
price/NN
below/IN
the/DT
current/JJ
market/NN
price/NN
and/CC
buy/VB
stops/NNS
above/IN
./.
In/IN
contrast/NN
,/,
sell/VB
limit/NN
orders/NNS
must/MD
be/VB
placed/VBN
above/IN
the/DT
market/NN
price/NN
and/CC
buy/VB
limit/NN
orders/NNS
are/VBP
placed/VBN
below/IN
./.
The/DT
crash/NN
in/IN
October/NNP
1987/CD
and/CC
last/JJ
Friday/NNP
's/POS
sell-off/NN
painfully/RB
taught/VBD
some/DT
investors/NNS
exactly/RB
what/WP
stop/VB
orders/NNS
will/MD
and/CC
wo/MD
n't/RB
do/VB
./.
An/DT
investor/NN
who/WP
may/MD
have/VB
placed/VBN
a/DT
stop-loss/NN
order/NN
at/IN
$/$
90/CD
under/IN
a/DT
stock/NN
that/WDT
was/VBD
trading/VBG
at/IN
$/$
100/CD
a/DT
share/NN
on/IN
the/DT
Friday/NNP
before/IN
the/DT
crash/NN
was/VBD
stunned/VBN
to/TO
discover/VB
that/IN
the/DT
order/NN
was/VBD
filled/VBN
at/IN
$/$
75/CD
when/WRB
the/DT
stock/NN
opened/VBD
at/IN
that/DT
price/NN
on/IN
Monday/NNP
./.
Stop-Limit/NNP
Order/NNP
:/:
Stop-limit/JJ
orders/NNS
turn/VB
into/IN
limit/NN
orders/NNS
when/WRB
an/DT
investment/NN
trades/VBZ
at/IN
the/DT
price/NN
specified/VBN
in/IN
the/DT
order/NN
./.
Unlike/IN
stop/NN
orders/NNS
--/:
which/WDT
are/VBP
filled/VBN
at/IN
the/DT
market/NN
price/NN
when/WRB
the/DT
stop/NN
price/NN
is/VBZ
hit/VBN
--/:
stop-limit/JJ
orders/NNS
demand/VB
that/IN
the/DT
trades/NNS
be/VB
made/VBN
only/RB
at/IN
the/DT
specified/VBN
price/NN
./.
If/IN
it/PRP
ca/MD
n't/RB
be/VB
made/VBN
at/IN
that/DT
price/NN
,/,
it/PRP
does/VBZ
n't/RB
get/VB
filled/VBN
./.
Investors/NNS
who/WP
wish/VB
to/TO
be/VB
out/IN
of/IN
a/DT
position/NN
,/,
without/IN
the/DT
risk/NN
of/IN
receiving/VBG
a/DT
worse-than-expected/JJ
price/NN
from/IN
a/DT
market/NN
order/NN
,/,
may/MD
use/VB
this/DT
type/NN
of/IN
order/NN
to/TO
specify/VB
the/DT
price/NN
at/IN
which/WDT
the/DT
order/NN
must/MD
be/VB
filled/VBN
./.
But/CC
if/IN
the/DT
market/NN
moves/VBZ
quickly/RB
enough/RB
,/,
it/PRP
may/MD
be/VB
impossible/JJ
for/IN
the/DT
broker/NN
to/TO
carry/VB
out/IN
the/DT
order/NN
because/IN
the/DT
investment/NN
has/VBZ
passed/VBN
the/DT
specified/VBN
price/NN
./.
Market-If-Touched/NNP
Order/NNP
:/:
Market-if-touched/JJ
orders/NNS
are/VBP
like/IN
stop/NN
orders/NNS
in/IN
that/IN
they/PRP
become/VB
market/NN
orders/NNS
if/IN
a/DT
specified/VBN
price/NN
is/VBZ
reached/VBN
./.
However/RB
,/,
unlike/IN
a/DT
buy-stop/JJ
order/NN
,/,
a/DT
buy/NN
market-if-touched/NN
order/NN
is/VBZ
entered/VBN
at/IN
a/DT
price/NN
below/IN
the/DT
current/JJ
price/NN
,/,
while/IN
a/DT
sell/NN
market-if-touched/NN
order/NN
is/VBZ
entered/VBN
at/IN
a/DT
price/NN
above/IN
it/PRP
./.
As/RB
soon/RB
as/IN
the/DT
market/NN
trades/VBZ
at/IN
the/DT
specified/VBN
price/NN
the/DT
floor/NN
broker/NN
will/MD
fill/VB
it/PRP
at/IN
the/DT
best/JJS
possible/JJ
price/NN
./.
Fill-Or-Kill/NNP
Order/NNP
:/:
The/DT
fill-or-kill/JJ
order/NN
is/VBZ
one/CD
of/IN
several/JJ
associated/VBN
with/IN
the/DT
timing/NN
of/IN
trades/NNS
./.
It/PRP
instructs/VBZ
a/DT
broker/NN
to/TO
buy/VB
or/CC
sell/VB
an/DT
investment/NN
at/IN
the/DT
specified/VBN
price/NN
or/CC
better/JJR
./.
But/CC
if/IN
the/DT
investment/NN
ca/MD
n't/RB
be/VB
bought/VBN
or/CC
sold/VBN
immediately/RB
,/,
the/DT
order/NN
is/VBZ
automatically/RB
canceled/VBN
./.
Gregory/NNP
Bessemer/NNP
,/,
who/WP
came/VBD
in/IN
second/JJ
in/IN
the/DT
stock/NN
division/NN
of/IN
the/DT
recently/RB
completed/VBN
U.S./NNP
Trading/NNP
Championship/NNP
,/,
says/VBZ
he/PRP
uses/VBZ
fill-or-kill/JJ
orders/NNS
almost/RB
exclusively/RB
when/WRB
trading/VBG
options/NNS
./.
``/``
I/PRP
like/VB
to/TO
use/VB
them/PRP
to/TO
feel/VB
out/IN
the/DT
market/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
If/IN
they/PRP
do/VBP
n't/RB
fill/VB
it/PRP
immediately/RB
,/,
then/RB
I/PRP
can/MD
start/VB
over/IN
at/IN
a/DT
new/JJ
price/NN
or/CC
try/VB
again/RB
with/IN
the/DT
same/JJ
price/NN
./.
''/''
Not-Held/NNP
Order/NNP
:/:
This/DT
is/VBZ
another/DT
timing/VBG
order/NN
./.
It/PRP
is/VBZ
a/DT
market/NN
order/NN
that/WDT
allows/VBZ
floor/NN
brokers/NNS
to/TO
take/VB
more/JJR
time/NN
to/TO
buy/VB
or/CC
sell/VB
an/DT
investment/NN
,/,
if/IN
they/PRP
think/VB
they/PRP
can/MD
get/VB
a/DT
better/JJR
price/NN
by/IN
waiting/VBG
./.
Not-held/JJ
orders/NNS
,/,
which/WDT
are/VBP
also/RB
known/VBN
as/IN
``/``
disregard/VB
the/DT
tape/NN
''/''
orders/NNS
,/,
are/VBP
always/RB
done/VBN
at/IN
the/DT
customer/NN
's/POS
risk/NN
./.
One-Cancels-The-Other/NNP
Order/NNP
:/:
This/DT
is/VBZ
really/RB
two/CD
orders/NNS
in/IN
one/CD
,/,
generally/RB
for/IN
the/DT
same/JJ
security/NN
or/CC
commodity/NN
,/,
instructing/VBG
floor/NN
brokers/NNS
to/TO
fill/VB
whichever/WDT
order/NN
they/PRP
can/MD
first/RB
and/CC
then/RB
cancel/VB
the/DT
other/JJ
order/NN
./.
In/IN
a/DT
fast-moving/JJ
market/NN
,/,
it/PRP
prevents/VBZ
an/DT
investor/NN
from/IN
getting/VBG
stuck/VBN
with/IN
having/VBG
made/VBN
two/CD
trades/NNS
on/IN
the/DT
same/JJ
security/NN
./.
Specific-Time/NNP
Order/NNP
:/:
This/DT
type/NN
of/IN
order/NN
couples/NNS
many/JJ
of/IN
the/DT
orders/NNS
described/VBD
above/IN
with/IN
instructions/NNS
that/IN
the/DT
order/NN
must/MD
be/VB
carried/VBN
out/IN
at/IN
or/CC
by/IN
a/DT
certain/JJ
time/NN
./.
``/``
On/IN
the/DT
close/NN
''/''
can/MD
be/VB
added/VBN
to/TO
many/JJ
types/NNS
of/IN
orders/NNS
./.
For/IN
example/NN
,/,
``/``
market-on-close/JJ
orders/NNS
''/''
must/MD
be/VB
filled/VBN
during/IN
the/DT
last/JJ
few/JJ
minutes/NNS
of/IN
trading/VBG
for/IN
the/DT
day/NN
at/IN
a/DT
price/NN
that/WDT
is/VBZ
within/IN
the/DT
official/JJ
closing/NN
range/NN
of/IN
prices/NNS
as/IN
determined/VBN
by/IN
the/DT
exchange/NN
./.
``/``
Stop-close-only/JJ
orders/NNS
''/''
are/VBP
stop/NN
orders/NNS
that/WDT
only/RB
become/VB
active/JJ
during/IN
the/DT
closing/VBG
minutes/NNS
of/IN
trading/VBG
./.
``/``
Day/NN
orders/NNS
''/''
expire/VB
at/IN
the/DT
end/NN
of/IN
the/DT
day/NN
on/IN
which/WDT
they/PRP
are/VBP
entered/VBN
,/,
``/``
good-till-canceled/JJ
orders/NNS
''/''
have/VB
no/DT
expiration/NN
date/NN
./.
Most/JJS
brokers/NNS
assume/VB
that/IN
all/DT
orders/NNS
are/VBP
day/NN
orders/NNS
unless/IN
specified/VBN
otherwise/RB
./.
On/IN
Oct./NNP
19/CD
,/,
1987/CD
,/,
some/DT
investors/NNS
learned/VBD
the/DT
consequences/NNS
of/IN
entering/VBG
``/``
good-til-canceled/JJ
limit/NN
orders/NNS
''/''
and/CC
then/RB
forgetting/VBG
about/IN
them/PRP
./.
They/PRP
found/VBD
they/PRP
had/VBD
bought/VBN
stock/NN
from/IN
limit/NN
orders/NNS
that/IN
they/PRP
might/MD
have/VB
entered/VBN
weeks/NNS
or/CC
months/NNS
earlier/RB
and/CC
had/VBD
forgotten/VBN
to/TO
cancel/VB
./.
It/PRP
is/VBZ
always/RB
the/DT
responsibility/NN
of/IN
investors/NNS
to/TO
keep/VB
track/NN
of/IN
the/DT
orders/NNS
they/PRP
have/VB
placed/VBN
./.
Investors/NNS
who/WP
change/VB
their/PRP$
mind/NN
about/IN
buying/VBG
or/CC
selling/VBG
after/IN
an/DT
order/NN
has/VBZ
been/VBN
filled/VBN
are/VBP
,/,
usually/RB
,/,
stuck/VBD
with/IN
the/DT
consequences/NNS
./.
Mr./NNP
Angrist/NNP
writes/VBZ
on/IN
the/DT
options/NNS
and/CC
commodities/NNS
markets/NNS
for/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
./.
IN/IN
SIZING/NNP
UP/IN
the/DT
risks/NNS
of/IN
stock-market/JJ
investments/NNS
,/,
there/EX
's/VBZ
probably/RB
no/DT
starting/VBG
place/NN
better/RB
than/IN
``/``
beta/JJ
./.
''/''
But/CC
investors/NNS
better/RB
not/RB
ignore/VB
its/PRP$
limitations/NNS
,/,
either/RB
./.
Beta/NN
is/VBZ
a/DT
handy/JJ
gauge/NN
that/WDT
measures/VBZ
the/DT
volatility/NN
of/IN
a/DT
stock/NN
or/CC
stock/NN
mutual/JJ
fund/NN
./.
For/IN
any/DT
given/VBN
move/NN
in/IN
the/DT
overall/JJ
market/NN
,/,
it/PRP
suggests/VBZ
how/WRB
steeply/RB
that/IN
particular/JJ
issue/NN
might/MD
rise/VB
or/CC
fall/VB
./.
Beta/JJ
figures/NNS
are/VBP
widely/RB
available/JJ
and/CC
easy/JJ
to/TO
interpret/VB
./.
The/DT
beta/NN
of/IN
the/DT
broad/JJ
market/NN
,/,
typically/RB
defined/VBN
as/IN
the/DT
Standard/NNP
&/CC
Poor/NNP
's/POS
500-stock/CD
index/NN
,/,
is/VBZ
always/RB
1.0/CD
./.
So/IN
a/DT
stock/NN
with/IN
a/DT
beta/NN
of/IN
0.5/CD
is/VBZ
half/RB
as/RB
volatile/JJ
,/,
one/CD
at/IN
1.5/CD
is/VBZ
50/CD
%/NN
more/RBR
volatile/JJ
,/,
and/CC
so/RB
on/IN
./.
Cautious/JJ
investors/NNS
should/MD
generally/RB
go/VB
with/IN
stocks/NNS
that/WDT
have/VB
low/JJ
betas/NNS
./.
Go/VB
with/IN
high-beta/JJ
stocks/NNS
to/TO
get/VB
the/DT
biggest/JJS
payoff/NN
from/IN
a/DT
bet/NN
on/IN
a/DT
bull/NN
market/NN
./.
Remember/VB
,/,
though/RB
,/,
that/DT
beta/NN
also/RB
has/VBZ
important/JJ
limitations/NNS
./.
``/``
Beta/NN
is/VBZ
only/RB
part/NN
of/IN
the/DT
risk/NN
in/IN
a/DT
stock/NN
,/,
''/''
says/VBZ
William/NNP
F./NNP
Sharpe/NNP
,/,
the/DT
Stanford/NNP
University/NNP
emeritus/JJ
professor/NN
who/WP
developed/VBD
the/DT
measure/NN
./.
``/``
There/EX
is/VBZ
risk/NN
that/WDT
is/VBZ
not/RB
associated/VBN
with/IN
market/NN
moves/VBZ
,/,
and/CC
the/DT
beta/NN
does/VBZ
n't/RB
tell/VB
you/PRP
the/DT
magnitude/NN
of/IN
that/DT
./.
''/''
In/IN
particular/JJ
,/,
beta/JJ
does/VBZ
n't/RB
measure/VB
the/DT
company/NN
industry-specific/JJ
risk/NN
associated/VBN
with/IN
an/DT
individual/JJ
stock/NN
./.
That/IN
``/``
business/NN
''/''
risk/NN
is/VBZ
very/RB
significant/JJ
for/IN
an/DT
investor/NN
with/IN
only/RB
a/DT
few/JJ
stocks/NNS
,/,
but/CC
it/PRP
virtually/RB
disappears/VBZ
in/IN
a/DT
large/JJ
and/CC
well-diversified/JJ
portfolio/NN
./.
Beta/NN
is/VBZ
also/RB
a/DT
poor/JJ
indicator/NN
of/IN
the/DT
risk/NN
in/IN
stock/NN
groups/NNS
that/WDT
march/VB
to/TO
their/PRP$
own/JJ
drummer/NN
./.
In/IN
particular/JJ
,/,
the/DT
prices/NNS
of/IN
gold/NN
and/CC
other/JJ
precious-metals/JJ
stocks/NNS
shoot/VB
up/IN
and/CC
down/IN
,/,
but/CC
the/DT
stocks/NNS
tend/VB
to/TO
have/VB
low/JJ
betas/NNS
because/IN
their/PRP$
moves/NNS
are/VBP
not/RB
market-inspired/JJ
./.
Concern/NN
that/IN
investors/NNS
could/MD
misinterpret/VB
such/JJ
readings/NNS
led/VBD
the/DT
American/NNP
Association/NNP
of/IN
Individual/NNP
Investors/NNP
to/TO
eliminate/VB
beta/JJ
figures/NNS
for/IN
precious-metals/JJ
funds/NNS
in/IN
the/DT
1989/CD
edition/NN
of/IN
its/PRP$
mutual-fund/JJ
guide/NN
./.
``/``
Our/PRP$
fear/NN
was/VBD
people/NNS
would/MD
look/VB
just/RB
at/IN
the/DT
beta/NN
a/DT
gold/JJ
fund/NN
an/DT
investment/NN
with/IN
very/RB
low/JJ
risk/VB
,/,
''/''
says/VBZ
John/NNP
Markese/NNP
,/,
director/NN
of/IN
research/NN
for/IN
the/DT
Chicago-based/JJ
group/NN
./.
``/``
In/IN
reality/NN
it/PRP
's/VBZ
very/RB
volatile/JJ
,/,
but/CC
the/DT
movements/NNS
are/VBP
not/RB
because/RB
of/IN
market/NN
movements/NNS
./.
''/''
READY/NNP
TO/TO
REVIEW/NNP
the/DT
riskiness/NN
of/IN
your/PRP$
investment/NN
portfolio/NN
?/.
First/RB
,/,
a/DT
pop/NN
quiz/NN
./.
When/WRB
you/PRP
think/VB
of/IN
the/DT
words/NNS
``/``
risk/NN
''/''
and/CC
``/``
investment/NN
,/,
''/''
what/WP
's/VBZ
the/DT
specific/NN
peril/NN
that/WDT
comes/VBZ
to/TO
mind/VB
?/.
Pencils/NNS
down/IN
./.
If/IN
you/PRP
're/VBP
like/IN
most/JJS
people/NNS
,/,
you/PRP
said/VBD
it/PRP
's/VBZ
a/DT
holding/NN
that/WDT
goes/VBZ
completely/RB
sour/JJ
--/:
maybe/RB
a/DT
bond/NN
that/IN
defaults/NNS
or/CC
a/DT
stock/NN
whose/WP$
value/NN
disappears/VBZ
in/IN
a/DT
bankruptcy/NN
proceeding/NN
./.
``/``
People/NNS
tend/VB
to/TO
see/VB
risk/NN
primarily/RB
on/IN
that/DT
one/CD
dimension/NN
,/,
''/''
says/VBZ
Timothy/NNP
Kochis/NNP
,/,
national/JJ
director/NN
of/IN
personal/NN
financial/JJ
planning/NN
for/IN
accountants/NNS
Deloitte/NNP
,/,
Haskins/NNP
&/CC
Sells/NNP
./.
But/CC
therein/RB
lies/VBZ
another/DT
aspect/NN
of/IN
investment/NN
risk/NN
:/:
the/DT
hazard/NN
of/IN
shaping/VBG
your/PRP$
portfolio/NN
to/TO
avoid/VB
one/CD
or/CC
more/JJR
types/NNS
of/IN
risk/NN
and/CC
being/VBG
blind-sided/JJ
by/IN
others/NNS
./.
This/DT
is/VBZ
clearly/RB
not/RB
good/JJ
news/NN
to/TO
all/DT
you/PRP
people/NNS
who/WP
sleep/VB
like/IN
babies/NNS
every/DT
night/NN
,/,
lulled/VBN
by/IN
visions/NNS
of/IN
your/PRP$
money/NN
sitting/VBG
risk-free/JJ
in/IN
six-month/JJ
CDs/NNS
./.
Risk/NN
wears/VBZ
many/JJ
disguises/NNS
,/,
and/CC
investments/NNS
that/WDT
are/VBP
low/JJ
in/IN
one/CD
type/NN
of/IN
obvious/JJ
risk/NN
can/MD
be/VB
distressingly/RB
high/JJ
in/IN
other/JJ
,/,
less/RBR
obvious/JJ
kinds/NNS
./.
U.S./NNP
Treasury/NNP
bonds/NNS
,/,
for/IN
example/NN
,/,
are/VBP
supersafe/NN
when/WRB
it/PRP
comes/VBZ
to/TO
returning/VBG
money/NN
at/IN
maturity/NN
./.
But/CC
their/PRP$
value/NN
as/IN
investments/NNS
can/MD
be/VB
decimated/VBN
by/IN
inflation/NN
,/,
which/WDT
erodes/VBZ
the/DT
purchasing/VBG
power/NN
of/IN
bonds/NNS
'/POS
fixed-dollar/JJ
interest/NN
payments/NNS
./.
Risk/NN
is/VBZ
also/RB
a/DT
function/NN
of/IN
time/NN
./.
When/WRB
financial/JJ
professionals/NNS
measure/VB
risk/NN
mathematically/RB
,/,
they/PRP
usually/RB
focus/VB
on/IN
the/DT
volatility/NN
of/IN
short-term/JJ
returns/NNS
./.
Stocks/NNS
are/VBP
much/RB
riskier/JJR
than/IN
Treasury/NNP
bills/NNS
,/,
for/IN
example/NN
,/,
because/IN
the/DT
range/NN
in/IN
performance/NN
from/IN
the/DT
best/JJS
years/NNS
to/TO
the/DT
worst/JJS
is/VBZ
much/RB
wider/JJR
./.
That/DT
is/VBZ
usually/RB
measured/VBN
by/IN
the/DT
standard/JJ
deviation/NN
,/,
or/CC
divergence/NN
,/,
of/IN
annual/JJ
results/NNS
from/IN
the/DT
average/JJ
return/NN
over/IN
time/NN
./.
But/CC
investors/NNS
who/WP
are/VBP
preoccupied/VBN
with/IN
short-term/JJ
fluctuations/NNS
may/MD
be/VB
paying/VBG
too/RB
little/JJ
attention/NN
to/TO
another/DT
big/JJ
risk/NN
--/:
not/RB
generating/VBG
enough/JJ
money/NN
to/TO
meet/VB
long-term/JJ
financial/JJ
and/CC
life-style/JJ
goals/NNS
./.
For/IN
instance/NN
,/,
some/DT
investors/NNS
have/VB
sworn/VBN
off/IN
stocks/NNS
since/IN
the/DT
1987/CD
market/NN
crash/NN
;/:
last/JJ
Friday/NNP
's/POS
debacle/NN
only/RB
reinforced/VBD
those/DT
feelings/NNS
./.
But/CC
the/DT
stock/NN
market/NN
,/,
despite/IN
some/DT
stomach-churning/JJ
declines/NNS
,/,
has/VBZ
far/RB
outperformed/VBN
other/JJ
securities/NNS
over/IN
extended/VBN
periods/NNS
./.
By/IN
retreating/VBG
to/TO
the/DT
apparent/JJ
security/NN
of/IN
,/,
say/VB
,/,
money-market/JJ
funds/NNS
,/,
investors/NNS
may/MD
not/RB
be/VB
earning/VBG
enough/JJ
investment/NN
return/VB
to/TO
pay/VB
for/IN
a/DT
comfortable/JJ
retirement/NN
./.
``/``
That/DT
's/VBZ
the/DT
biggest/JJS
risk/NN
of/IN
all/DT
--/:
the/DT
risk/NN
of/IN
not/RB
meeting/VBG
your/PRP$
objectives/NNS
,/,
''/''
says/VBZ
Steven/NNP
B./NNP
Enright/NNP
,/,
a/DT
New/NNP
York/NNP
financial/JJ
planner/NN
with/IN
Seidman/NNP
Financial/NNP
Services/NNP
./.
As/IN
a/DT
result/NN
,/,
financial/JJ
advisers/NNS
say/VB
they/PRP
take/VB
several/JJ
steps/NNS
when/WRB
evaluating/VBG
the/DT
riskiness/NN
of/IN
clients/NNS
'/POS
portfolios/NNS
./.
They/PRP
estimate/VB
the/DT
return/NN
a/DT
person/NN
's/POS
current/JJ
portfolio/NN
is/VBZ
likely/JJ
to/TO
generate/VB
over/IN
time/NN
,/,
along/IN
with/IN
a/DT
standard/JJ
deviation/NN
that/WDT
suggests/VBZ
how/WRB
much/RB
the/DT
return/NN
will/MD
vary/VB
year/NN
by/IN
year/NN
./.
They/PRP
try/VB
to/TO
figure/VB
out/IN
the/DT
long-term/NN
results/VBZ
the/DT
person/NN
needs/VBZ
to/TO
meet/VB
major/JJ
goals/NNS
./.
And/CC
they/PRP
eyeball/NN
types/NNS
of/IN
risk/NN
that/WDT
are/VBP
not/RB
easily/RB
quantified/VBN
./.
The/DT
portfolios/NNS
of/IN
two/CD
hypothetical/JJ
families/NNS
,/,
one/CD
a/DT
couple/NN
at/IN
retirement/NN
age/NN
and/CC
another/DT
a/DT
two-income/NN
couple/NN
at/IN
age/NN
45/CD
,/,
illustrate/VB
several/JJ
types/NNS
of/IN
risk/NN
that/IN
investors/NNS
need/VB
to/TO
consider/VB
./.
For/IN
instance/NN
,/,
the/DT
insured/VBN
municipal/JJ
bonds/NNS
that/WDT
dominate/VB
the/DT
older/JJR
couple/NN
's/POS
portfolio/NN
were/VBD
probably/RB
selected/VBN
in/IN
large/JJ
part/NN
for/IN
their/PRP$
low/JJ
repayment/NN
risk/NN
./.
But/CC
they/PRP
expose/VB
the/DT
holders/NNS
to/TO
a/DT
lot/NN
of/IN
inflation/NN
risk/NN
and/CC
interest-rate/JJ
risk/NN
./.
The/DT
younger/JJR
couple/NN
's/POS
stockholdings/NNS
involve/VB
more/JJR
risk/NN
than/IN
a/DT
diversified/VBN
stock/NN
portfolio/NN
because/IN
the/DT
bulk/NN
of/IN
the/DT
money/NN
is/VBZ
in/IN
a/DT
single/JJ
issue/NN
./.
Note/VB
that/IN
the/DT
younger/JJR
couple/NN
's/POS
portfolio/NN
has/VBZ
a/DT
higher/JJR
expected/VBN
annual/JJ
return/NN
,/,
10.1/CD
%/NN
vs./NN
8.8/CD
%/NN
,/,
as/IN
calculated/VBN
by/IN
Seidman/NNP
Financial/NNP
Services/NNP
,/,
which/WDT
is/VBZ
the/DT
financial-planning/JJ
affiliate/NN
of/IN
BDO/NNP
Seidman/NNP
./.
That/DT
largely/RB
reflects/VBZ
the/DT
heavy/NN
stockholdings/NNS
./.
But/CC
one/CD
price/NN
paid/VBN
for/IN
the/DT
higher/JJR
expected/VBN
return/NN
is/VBZ
greater/JJR
short-term/NN
volatility/NN
,/,
as/IN
reflected/VBN
in/IN
the/DT
higher/JJR
standard/JJ
deviation/NN
that/IN
Seidman/NN
estimates/NNS
for/IN
the/DT
younger/JJR
couple/NN
's/POS
portfolio/NN
./.
a/DT
standard/JJ
deviation/NN
figure/NN
:/:
Take/VB
the/DT
expected/VBN
return/NN
and/CC
add/VB
one/CD
standard/JJ
deviation/NN
to/TO
it/PRP
./.
Then/RB
take/VB
the/DT
expected/VBN
return/NN
and/CC
subtract/VB
one/CD
standard/JJ
deviation/NN
./.
In/IN
two/CD
of/IN
three/CD
years/NNS
,/,
the/DT
actual/JJ
result/NN
should/MD
fall/VB
within/IN
that/DT
range/NN
if/IN
all/DT
the/DT
assumptions/NNS
were/VBD
accurate/JJ
./.
Then/RB
add/VB
and/CC
subtract/VB
two/CD
standard/JJ
deviations/NNS
to/TO
get/VB
a/DT
wider/JJR
range/NN
./.
There/EX
's/VBZ
a/DT
95/CD
%/NN
probability/NN
any/DT
year/NN
's/POS
result/NN
will/MD
fall/VB
in/IN
the/DT
range/NN
./.
Of/IN
course/NN
,/,
the/DT
greater/JJR
volatility/NN
of/IN
the/DT
younger/JJR
couple/NN
's/POS
portfolio/NN
does/VBZ
n't/RB
necessarily/RB
mean/VB
those/DT
investments/NNS
are/VBP
riskier/NN
in/IN
terms/NNS
of/IN
meeting/VBG
the/DT
holders/NNS
'/POS
long-term/JJ
goals/NNS
./.
Indeed/RB
,/,
the/DT
older/JJR
couple/NN
's/POS
portfolio/NN
could/MD
actually/RB
be/VB
riskier/NN
in/IN
that/DT
sense/NN
if/IN
the/DT
expected/VBN
return/NN
wo/MD
n't/RB
generate/VB
enough/JJ
dollars/NNS
to/TO
meet/VB
their/PRP$
spending/VBG
plans/NNS
./.
``/``
They/PRP
may/MD
feel/VB
emotionally/RB
secure/JJ
now/RB
because/IN
they/PRP
are/VBP
not/RB
heavily/RB
in/IN
the/DT
stock/NN
market/NN
,/,
''/''
says/VBZ
John/NNP
H./NNP
Cammack/NNP
,/,
a/DT
financial/JJ
planner/NN
with/IN
Alexandra/NNP
Armstrong/NNP
Advisors/NNP
Inc./NNP
in/IN
Washington/NNP
./.
``/``
But/CC
they/PRP
may/MD
pay/VB
a/DT
price/NN
10/CD
or/CC
20/CD
years/NNS
in/IN
the/DT
future/NN
./.
''/''
Ms./NNP
Slater/NNP
reports/NNS
on/IN
personal/NN
finance/NN
from/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
's/POS
New/NNP
York/NNP
bureau/NN
./.
When/WRB
it/PRP
comes/VBZ
to/TO
investing/VBG
,/,
trying/VBG
to/TO
weigh/VB
risk/NN
and/CC
reward/NN
can/MD
seem/VB
like/IN
throwing/VBG
darts/NN
blindfolded/VBD
:/:
Investors/NNS
do/VBP
n't/RB
know/VB
the/DT
actual/JJ
returns/NNS
that/IN
securities/NNS
will/MD
deliver/VB
,/,
or/CC
the/DT
ups/NNS
and/CC
downs/NNS
that/WDT
will/MD
occur/VB
along/IN
the/DT
way/NN
./.
Looking/VBG
to/TO
the/DT
past/NN
can/MD
provide/VB
some/DT
clues/NNS
./.
Over/IN
several/JJ
decades/NNS
,/,
for/IN
instance/NN
,/,
investors/NNS
who/WP
put/VBD
up/IN
with/IN
the/DT
stock/NN
market/NN
's/POS
gyrations/NNS
earned/VBD
returns/NNS
far/RB
in/IN
excess/NN
of/IN
those/DT
on/IN
bonds/NNS
and/CC
``/``
cash/NN
''/''
investments/NNS
like/IN
Treasury/NN
bills/NNS
./.
But/CC
while/IN
history/NN
can/MD
suggest/VB
what/WP
is/VBZ
reasonable/JJ
to/TO
expect/VB
there/EX
's/VBZ
no/DT
guarantee/NN
that/IN
the/DT
past/NN
will/MD
repeat/VB
itself/PRP
./.
For/IN
instance/NN
,/,
some/DT
analysts/NNS
believe/VB
bond/NN
returns/NNS
and/CC
volatility/NN
have/VB
moved/VBN
permanently/RB
closer/RB
to/TO
those/DT
of/IN
the/DT
stock/NN
market/NN
./.
And/CC
returns/NNS
on/IN
cash/NN
investments/NNS
may/MD
continue/VB
to/TO
exceed/VB
inflation/NN
by/IN
a/DT
wider/JJR
margin/NN
than/IN
they/PRP
did/VBD
over/IN
the/DT
long-term/JJ
past/NN
./.
Portfolio/NNP
A/DT
:/:
Retired/VBN
couple/NN
,/,
age/NN
65/CD
;/:
$/$
400,000/CD
portfolio/NN
./.
Portfolio/NNP
B/NNP
:/:
Two-income/NN
couple/NN
,/,
age/NN
45/CD
;/:
$/$
150,000/CD
portfolio/NN
./.
\*/NN
Calculated/VBN
by/IN
Seidman/NNP
Financial/NNP
Services/NNPS
A/DT
letter/NN
from/IN
Senator/NNP
John/NNP
Kerry/NNP
chides/VBZ
us/PRP
today/NN
for/IN
implying/VBG
that/IN
he/PRP
had/VBD
``/``
flip-flopped/JJ
''/''
on/IN
Manuel/NNP
Noriega/NNP
./.
He/PRP
correctly/RB
says/VBZ
he/PRP
has/VBZ
been/VBN
down/IN
on/IN
Noriega/NNP
for/IN
some/DT
time/NN
,/,
hence/RB
his/PRP$
criticism/NN
of/IN
administration/NN
mishandling/VBG
of/IN
the/DT
attempted/VBN
coup/NN
./.
Our/PRP$
October/NNP
12/CD
editorial/NN
should/MD
have/VB
been/VBN
more/RBR
precise/JJ
./.
It/PRP
meant/VBD
to/TO
convey/VB
our/PRP$
hope/NN
that/IN
the/DT
Senator/NNP
and/CC
other/JJ
members/NNS
of/IN
the/DT
congressional/JJ
left/NN
are/VBP
broadening/VBG
their/PRP$
dislike/NN
of/IN
Noriega/NN
to/TO
include/VB
other/JJ
notorious/JJ
Central/NNP
American/NNP
drug/NN
runners/NNS
./.
The/DT
Sandinistas/NNP
of/IN
Nicaragua/NNP
,/,
for/IN
example/NN
,/,
also/RB
are/VBP
part/NN
of/IN
the/DT
Castro-Medellin/NNP
cartel/NN
nexus/NN
./.
In/IN
his/PRP$
letter/NN
and/CC
on/IN
the/DT
basis/NN
of/IN
his/PRP$
losing/VBG
vote/NN
Tuesday/NNP
against/IN
U.S./NNP
aid/NN
for/IN
the/DT
Nicaraguan/NNP
opposition/NN
,/,
Senator/NNP
Kerry/NNP
makes/VBZ
clear/JJ
he/PRP
has/VBZ
not/RB
made/VBN
that/IN
intellectual/JJ
leap/NN
./.
We/PRP
were/VBD
wrong/JJ
./.
THROUGHOUT/IN
THE/DT
1980s/NNS
,/,
investors/NNS
have/VBP
been/VBN
looking/VBG
for/IN
creative/JJ
alternatives/NNS
to/TO
traditional/JJ
modes/NNS
of/IN
financial/JJ
planning/NN
./.
Capital/NN
has/VBZ
been/VBN
democratized/VBN
,/,
and/CC
people/NNS
want/VBP
in/RP
./.
Too/RB
often/RB
,/,
however/RB
,/,
small/JJ
investors/NNS
are/VBP
left/VBN
with/IN
the/DT
same/JJ
stale/JJ
solutions/NNS
that/WDT
appealed/VBD
to/TO
previous/JJ
generations/NNS
of/IN
fiduciary/JJ
strategists/NNS
./.
Now/RB
a/DT
startling/JJ
new/JJ
approach/NN
is/VBZ
available/JJ
to/TO
building/VBG
your/PRP$
financial/JJ
portfolio/NN
without/IN
undue/JJ
risk/NN
,/,
without/IN
extensive/JJ
planning/NN
and/CC
without/IN
hurting/VBG
your/PRP$
life/NN
style/NN
one/CD
bit/NN
!/.
This/DT
is/VBZ
particularly/RB
good/JJ
news/NN
for/IN
those/DT
who/WP
hate/VBP
risk/NN
,/,
who/WP
are/VBP
incapable/JJ
of/IN
doing/VBG
extensive/JJ
amounts/NNS
of/IN
planning/NN
and/CC
who/WP
refuse/VBP
to/TO
see/VB
their/PRP$
life/NN
styles/NNS
hurt/VBN
in/IN
any/DT
way/NN
./.
You/PRP
know/VBP
who/WP
you/PRP
are/VBP
./.
My/PRP$
revolutionary/JJ
system/NN
is/VBZ
also/RB
useful/JJ
for/IN
those/DT
who/WP
have/VBP
tried/VBN
customary/JJ
forms/NNS
of/IN
growing/VBG
their/PRP$
currency/NN
cushion/NN
./.
Like/IN
all/DT
Americans/NNS
seeking/VBG
chronic/NN
prosperity/NN
,/,
I/PRP
do/VBP
find/VB
it/PRP
necessary/JJ
to/TO
plunge/VB
certain/JJ
funds/NNS
into/IN
conservative/JJ
monetary/JJ
tools/NNS
,/,
if/IN
only/RB
to/TO
assuage/VB
my/PRP$
father-in-law/NN
,/,
who/WP
believes/VBZ
in/IN
such/JJ
things/NNS
./.
So/RB
throughout/IN
the/DT
decade/NN
I/PRP
have/VBP
maintained/VBN
my/PRP$
share/NN
of/IN
individual/JJ
retirement/NN
accounts/NNS
and/CC
CDs/NNS
,/,
and/CC
tinkered/VBN
with/IN
stocks/NNS
,/,
bonds/NNS
and/CC
mutual/JJ
funds/NNS
,/,
as/RB
well/RB
as/IN
preserving/VBG
my/PRP$
necessary/JJ
position/NN
in/IN
the/DT
residential/JJ
real-estate/NN
market/NN
./.
Return/NN
on/IN
this/DT
fine/JJ
portfolio/NN
has/VBZ
been/VBN
modest/JJ
when/WRB
it/PRP
has/VBZ
not/RB
been/VBN
negative/JJ
./.
Figure/NN
1/CD
demonstrates/VBZ
the/DT
performance/NN
of/IN
those/DT
businesses/NNS
I/PRP
've/VBP
invested/VBN
in/IN
during/IN
this/DT
prosperous/JJ
decade/NN
accompanying/VBG
illustration/NN
--/:
WSJ/NNP
Oct./NNP
20/CD
,/,
1989/CD
Oil-related/JJ
properties/NNS
suffered/VBD
a/DT
huge/JJ
decline/NN
until/IN
I/PRP
divested/VBD
myself/PRP
of/IN
all/DT
such/JJ
stocks/NNS
in/IN
1985/CD
,/,
at/IN
which/WDT
point/NN
the/DT
industry/NN
,/,
while/IN
not/RB
lighting/VBG
up/IN
any/DT
Christmas/NNP
trees/NNS
,/,
began/VBD
a/DT
slow/JJ
recovery/NN
./.
Likewise/RB
,/,
mutual/JJ
funds/NNS
remained/VBD
relatively/RB
flat/JJ
until/IN
I/PRP
made/VBD
what/WP
was/VBD
,/,
for/IN
me/PRP
,/,
a/DT
serious/JJ
investment/NN
./.
By/IN
1987/CD
,/,
these/DT
properties/NNS
were/VBD
in/IN
a/DT
tailspin/NN
,/,
causing/VBG
my/PRP$
broker/NN
at/IN
Pru-Bache/NNP
to/TO
remark/VB
that/IN
she/PRP
'd/VBD
``/``
never/RB
seen/VBN
anything/NN
like/IN
it/PRP
./.
''/''
Concerned/VBN
for/IN
her/PRP$
state/NN
of/IN
mind/NN
,/,
I/PRP
dropped/VBD
them/PRP
--/:
and/CC
the/DT
market/NN
instantly/RB
began/VBD
its/PRP$
steady/JJ
climb/NN
back/RB
to/TO
health/NN
./.
Perhaps/RB
most/RBS
dramatic/JJ
was/VBD
the/DT
performance/NN
of/IN
the/DT
metropolitan/JJ
New/NNP
York/NNP
real-estate/NN
market/NN
,/,
which/WDT
was/VBD
booming/VBG
until/IN
I/PRP
entered/VBD
it/PRP
in/IN
late/JJ
1988/CD
,/,
at/IN
which/WDT
time/NN
it/PRP
posted/VBD
the/DT
first/JJ
negative/JJ
compound/JJ
annual/JJ
growth/NN
rate/NN
in/IN
years/NNS
./.
Disgusted/VBN
,/,
I/PRP
cast/VBD
around/RP
for/IN
a/DT
different/JJ
way/NN
to/TO
plan/VB
my/PRP$
asset/NN
distribution/NN
,/,
and/CC
with/IN
hardly/RB
any/DT
heavy/JJ
breathing/NN
the/DT
answer/NN
struck/VBD
me/PRP
:/:
I/PRP
was/VBD
doing/VBG
it/PRP
already/RB
!/.
We/PRP
've/VBP
all/DT
got/VBD
money/NN
to/TO
spend/VB
,/,
some/DT
of/IN
it/PRP
clearly/RB
disposable/JJ
since/IN
we/PRP
keep/VBP
disposing/VBG
of/IN
it/PRP
./.
Bank/VB
it/PRP
?/.
Not/RB
really/RB
!/.
Sock/VB
it/PRP
away/RB
in/IN
long-term/JJ
instruments/NNS
?/.
Nonsense/NN
!/.
Daily/RB
living/NN
is/VBZ
the/DT
best/JJS
possible/JJ
investment/NN
!/.
Your/PRP$
priorities/NNS
may/MD
be/VB
different/JJ
,/,
but/CC
here/RB
in/IN
Figure/NN
2/CD
is/VBZ
where/WRB
I/PRP
've/VBP
chosen/VBN
to/TO
build/VB
for/IN
the/DT
future/NN
:/:
personal/JJ
space/NN
;/:
automotive/JJ
pursuits/NNS
;/:
children/NNS
's/POS
toys/NNS
;/:
gardening/VBG
equipment/NN
,/,
bulbs/NNS
and/CC
shrubs/NNS
;/:
and/CC
finally/RB
,/,
entertainment/NN
,/,
perhaps/RB
the/DT
best/JJS
investment/NN
of/IN
all/DT
./.
All/DT
have/VBP
paid/VBD
off/RP
for/IN
me/PRP
in/IN
double-digit/JJ
annual/JJ
growth/NN
and/CC
continue/VBP
to/TO
provide/VB
significant/JJ
potential/NN
./.
At/IN
least/JJS
,/,
according/VBG
to/TO
my/PRP$
calculations/NNS
./.
Personal/JJ
space/NN
Figure/NN
3/CD
35/CD
%/NN
annually/RB
over/IN
the/DT
course/NN
of/IN
the/DT
decade/NN
,/,
a/DT
performance/NN
that/WDT
would/MD
compare/VB
positively/RB
with/IN
an/DT
investment/NN
in/IN
,/,
say/VB
,/,
synthetic-leather/JJ
products/NNS
for/IN
the/DT
interiors/NNS
of/IN
cold-weather/JJ
vehicles/NNS
,/,
which/WDT
my/PRP$
cousin/NN
got/VBD
into/IN
and/CC
sort/NN
of/IN
regrets/VBZ
to/TO
this/DT
day/NN
./.
The/DT
assortment/NN
of/IN
expensive/JJ
children/NNS
's/POS
toys/NNS
that/IN
I/PRP
have/VBP
purchased/VBN
wisely/RB
at/IN
a/DT
host/NN
of/IN
discount-toy/JJ
brokerage/NN
firms/NNS
Figure/NN
4/CD
total/JJ
asset/NN
value/NN
far/RB
beyond/IN
any/DT
personal/JJ
investment/NN
except/IN
,/,
perhaps/RB
,/,
for/IN
my/PRP$
record/NN
collection/NN
,/,
whose/WP$
worth/JJ
,/,
I/PRP
think/VBP
it/PRP
's/VBZ
safe/JJ
to/TO
say/VB
,/,
is/VBZ
incalculable/JJ
./.
Continued/VBN
investment/NN
in/IN
my/PRP$
1984/CD
subcompact/NN
has/VBZ
been/VBN
part/NN
of/IN
my/PRP$
strategy/NN
Figure/NNP
5/CD
present/JJ
annual/JJ
contributions/NNS
now/RB
equaling/VBG
more/JJR
than/IN
60/CD
%/NN
of/IN
the/DT
car/NN
's/POS
original/JJ
value/NN
./.
According/VBG
to/TO
my/PRP$
calculations/NNS
,/,
these/DT
outlays/NNS
should/MD
have/VB
brought/VBN
the/DT
value/NN
of/IN
my/PRP$
sedan/NN
to/TO
more/JJR
than/IN
$/$
22,000/CD
on/IN
the/DT
open/JJ
market/NN
Figure/NNP
6/CD
I/PRP
plan/VBP
to/TO
offer/VB
it/PRP
shortly/RB
./.
Expansion/NN
of/IN
my/PRP$
living/VBG
space/NN
has/VBZ
produced/VBN
an/DT
obvious/JJ
need/NN
for/IN
maintenance/NN
and/CC
construction/NN
of/IN
suitable/JJ
lawns/NNS
,/,
shrubs/NNS
and/CC
bushes/NNS
fitting/JJ
to/TO
its/PRP$
suburban/JJ
locale/NN
./.
I/PRP
have/VBP
thus/RB
committed/VBN
sufficient/JJ
personal/JJ
outlay/NN
to/TO
ensure/VB
that/IN
my/PRP$
grounds/NNS
and/CC
lodgings/NNS
will/MD
never/RB
be/VB
short/JJ
of/IN
greens/NNS
and/CC
flowers/NNS
./.
My/PRP$
initial/JJ
stake/NN
in/IN
this/DT
blooming/VBG
enterprise/NN
has/VBZ
grown/VBN
tenfold/RB
,/,
according/VBG
to/TO
my/PRP$
conservative/JJ
calculations/NNS
./.
At/IN
the/DT
same/JJ
time/NN
,/,
my/PRP$
share/NN
in/IN
a/DT
wide/JJ
variety/NN
of/IN
entertainment/NN
pursuits/NNS
has/VBZ
given/VBN
perhaps/RB
the/DT
most/RBS
dramatic/JJ
demonstration/NN
of/IN
the/DT
benefits/NNS
of/IN
creative/JJ
personal/JJ
financial/JJ
planning/NN
./.
Over/IN
the/DT
course/NN
of/IN
the/DT
decade/NN
,/,
for/IN
instance/NN
,/,
my/PRP$
return/NN
on/IN
investment/NN
in/IN
the/DT
area/NN
of/IN
poker/NN
alone/RB
(/(
Figures/NNS
7A/NN
and/CC
7B/NN
bodacious/JJ
annual/JJ
expansion/NN
with/IN
--/:
given/VBN
the/DT
way/NN
my/PRP$
associates/NNS
play/VBP
--/:
no/DT
sign/NN
of/IN
abatement/NN
into/IN
the/DT
1990s/NNS
and/CC
beyond/IN
./.
With/IN
this/DT
personal/JJ
strategy/NN
firmly/RB
in/IN
place/NN
,/,
I/PRP
look/VBP
forward/RB
to/TO
years/NNS
of/IN
fine/JJ
life-style/NN
investments/NNS
and/CC
increasing/JJ
widespread/JJ
leverage/NN
./.
My/PRP$
kids/NNS
'/POS
college/NN
education/NN
looms/VBZ
as/IN
perhaps/RB
the/DT
greatest/JJS
future/JJ
opportunity/NN
for/IN
spending/VBG
,/,
although/IN
I/PRP
'll/MD
probably/RB
have/VB
to/TO
cash/VB
in/RP
their/PRP$
toy/NN
portfolio/NN
to/TO
take/VB
advantage/NN
of/IN
it/PRP
./.
But/CC
with/IN
every/DT
step/NN
I/PRP
take/VBP
,/,
I/PRP
'm/VBP
building/VBG
wealth/NN
./.
You/PRP
can/MD
,/,
too/RB
,/,
if/IN
you/PRP
,/,
like/IN
me/PRP
,/,
refuse/VBP
to/TO
bite/VB
the/DT
bullet/NN
./.
So/RB
go/VB
out/RB
there/RB
and/CC
eat/VB
that/DT
debt/NN
./.
You/PRP
're/VBP
right/RB
there/RB
in/IN
the/DT
mainstream/NN
of/IN
American/JJ
business/NN
,/,
building/VBG
value/NN
on/IN
the/DT
back/NN
of/IN
insupportable/JJ
expenditures/NNS
./.
Henry/NNP
Kravis/NNP
,/,
watch/VB
out/RP
!/.
Mr./NNP
Schwartz/NNP
is/VBZ
a/DT
business/NN
executive/NN
and/CC
writer/NN
in/IN
New/NNP
York/NNP
./.
WHEN/WRB
JAMES/NNP
SCHWARTZ/NNP
was/VBD
just/RB
a/DT
lad/NN
his/PRP$
father/NN
gave/VBD
him/PRP
a/DT
piece/NN
of/IN
career/NN
advice/NN
./.
``/``
He/PRP
told/VBD
me/PRP
to/TO
choose/VB
an/DT
area/NN
where/WRB
just/RB
by/IN
being/VBG
mediocre/JJ
I/PRP
could/MD
be/VB
great/JJ
,/,
''/''
recalls/VBZ
Mr./NNP
Schwartz/NNP
,/,
now/RB
40/CD
./.
He/PRP
tried/VBD
management/NN
consulting/NN
,/,
traded/VBD
in/IN
turquoise/NN
for/IN
a/DT
while/NN
,/,
and/CC
even/RB
managed/VBD
professional/JJ
wrestlers/NNS
./.
Now/RB
he/PRP
has/VBZ
settled/VBN
into/IN
a/DT
career/NN
that/WDT
fits/VBZ
the/DT
bill/NN
--/:
financial/JJ
planning/NN
./.
It/PRP
should/MD
be/VB
noted/VBN
that/IN
Mr./NNP
Schwartz/NNP
,/,
who/WP
operates/VBZ
out/RP
of/IN
Englewood/NNP
,/,
Colo./NNP
,/,
is/VBZ
a/DT
puckish/JJ
sort/NN
who/WP
likes/VBZ
to/TO
give/VB
his/PRP$
colleagues/NNS
the/DT
needle/NN
./.
But/CC
in/IN
this/DT
case/NN
the/DT
needle/NN
has/VBZ
a/DT
very/RB
sharp/JJ
point/NN
./.
Though/IN
it/PRP
's/VBZ
probably/RB
safe/JJ
to/TO
assume/VB
that/IN
the/DT
majority/NN
of/IN
financial/JJ
planners/NNS
are/VBP
honest/JJ
and/CC
even/RB
reasonably/RB
competent/JJ
,/,
the/DT
fact/NN
remains/VBZ
that/IN
,/,
as/IN
one/CD
wag/NN
puts/VBZ
it/PRP
,/,
``/``
anybody/NN
who/WP
can/MD
fog/VB
a/DT
mirror/NN
''/''
can/MD
call/VB
himself/PRP
a/DT
financial/JJ
planner/NN
./.
Planners/NNS
now/RB
influence/VBP
the/DT
investment/NN
of/IN
several/JJ
hundred/CD
billion/CD
dollars/NNS
,/,
but/CC
in/IN
effect/NN
they/PRP
operate/VBP
in/IN
the/DT
dark/NN
./.
There/EX
is/VBZ
no/DT
effective/JJ
regulation/NN
of/IN
planners/NNS
,/,
no/DT
accepted/VBN
standard/NN
for/IN
admission/NN
into/IN
their/PRP$
ranks/NNS
--/:
a/DT
dog/NN
got/VBD
into/IN
one/CD
trade/NN
group/NN
--/:
no/DT
way/NN
to/TO
assess/VB
their/PRP$
performance/NN
,/,
no/DT
way/NN
even/RB
to/TO
know/VB
how/WRB
many/JJ
of/IN
them/PRP
there/EX
are/VBP
(/(
estimates/NNS
range/VBP
from/IN
60,000/CD
to/TO
450,000/CD
All/DT
anyone/NN
need/MD
do/VB
is/VBZ
hang/VB
up/RP
a/DT
shingle/NN
and/CC
start/VB
planning/VBG
./.
So/RB
it/PRP
should/MD
come/VB
as/IN
no/DT
shock/NN
that/IN
the/DT
profession/NN
,/,
if/IN
that/DT
's/VBZ
what/WP
it/PRP
is/VBZ
,/,
has/VBZ
attracted/VBN
a/DT
lot/NN
of/IN
people/NNS
whose/WP$
principal/JJ
talents/NNS
seem/VBP
to/TO
be/VB
frittering/VBG
away/RB
or/CC
flat-out/JJ
stealing/VBG
their/PRP$
clients/NNS
'/POS
money/NN
./.
Alarmed/VBN
,/,
state/NN
and/CC
federal/JJ
authorities/NNS
are/VBP
trying/VBG
to/TO
devise/VB
ways/NNS
to/TO
certify/VB
and/CC
regulate/VB
planners/NNS
./.
Industry/NN
groups/NNS
and/CC
reputable/JJ
planners/NNS
who/WP
are/VBP
members/NNS
of/IN
them/PRP
want/VBP
comprehensive/JJ
standards/NNS
,/,
too/RB
;/:
they/PRP
're/VBP
tired/VBN
of/IN
seeing/VBG
practitioners/NNS
depicted/VBN
collectively/RB
in/IN
the/DT
business/NN
press/NN
as/RB
dumber/JJR
than/IN
chimpanzees/NNS
and/CC
greedier/JJR
than/IN
a/DT
herd/NN
of/IN
swine/NNS
./.
But/CC
reform/NN
has/VBZ
n't/RB
taken/VBN
hold/NN
yet/RB
./.
``/``
The/DT
industry/NN
is/VBZ
still/RB
pretty/RB
much/RB
in/IN
its/PRP$
Wild/NNP
West/NNP
days/NNS
,/,
''/''
says/VBZ
Scott/NNP
Stapf/NNP
,/,
director/NN
of/IN
investor/NN
education/NN
for/IN
the/DT
North/NNP
American/NNP
Securities/NNP
Administrators/NNP
Association/NNP
./.
An/DT
admittedly/RB
limited/VBN
survey/NN
by/IN
NASAA/NNP
,/,
whose/WP$
members/NNS
are/VBP
state/NN
securities-law/NN
regulators/NNS
,/,
found/VBD
that/IN
between/IN
1986/CD
and/CC
1988/CD
``/``
fraud/NN
and/CC
abuse/NN
''/''
by/IN
financial/JJ
planners/NNS
cost/VBD
22,000/CD
investors/NNS
$/$
400/CD
million/CD
./.
The/DT
rogues/NNS
'/POS
gallery/NN
of/IN
planners/NNS
involved/VBN
includes/VBZ
some/DT
convicted/VBN
felons/NNS
,/,
a/DT
compulsive/JJ
gambler/NN
or/CC
two/CD
,/,
various/JJ
businessmen/NNS
who/WP
had/VBD
planned/VBN
their/PRP$
own/JJ
previous/JJ
ventures/NNS
right/RB
into/IN
bankruptcy/NN
,/,
and/CC
one/CD
man/NN
who/WP
scammed/VBD
his/PRP$
wife/NN
's/POS
grandmother/NN
./.
What/WP
's/VBZ
more/JJR
,/,
the/DT
losses/NNS
they/PRP
and/CC
the/DT
others/NNS
caused/VBD
``/``
are/VBP
just/RB
what/WP
we/PRP
are/VBP
stumbling/VBG
over/IN
,/,
''/''
says/VBZ
Mr./NNP
Stapf/NNP
,/,
adding/VBG
that/IN
the/DT
majority/NN
of/IN
misdeeds/NNS
probably/RB
go/VBP
undetected/JJ
./.
So/RB
do/VBP
just/RB
about/RP
all/DT
the/DT
losses/NNS
that/WDT
could/MD
be/VB
attributed/VBN
to/TO
the/DT
sheer/JJ
incompetence/NN
of/IN
unqualified/JJ
planners/NNS
./.
Nobody/NN
can/MD
estimate/VB
the/DT
toll/NN
,/,
but/CC
John/NNP
Gargan/NNP
,/,
a/DT
Tampa/NNP
,/,
Fla./NNP
,/,
planner/NN
and/CC
head/NN
of/IN
one/CD
trade/NN
group/NN
,/,
the/DT
International/NNP
Association/NNP
of/IN
Registered/NNP
Financial/NNP
Planners/NNP
,/,
thinks/VBZ
the/DT
danger/NN
to/TO
investors/NNS
from/IN
incompetence/NN
is/VBZ
``/``
humongous/JJ
,/,
''/''
far/RB
greater/JJR
than/IN
that/DT
from/IN
crookery/NN
./.
His/PRP$
group/NN
,/,
like/IN
others/NNS
,/,
wants/VBZ
minimum/NN
standards/NNS
applied/VBN
to/TO
all/DT
who/WP
call/VBP
themselves/PRP
financial/JJ
planners/NNS
./.
Surveying/VBG
all/DT
this/DT
,/,
some/DT
people/NNS
now/RB
think/VBP
the/DT
best/JJS
planner/NN
might/MD
be/VB
no/DT
planner/NN
at/IN
all/DT
./.
For/IN
most/JJS
investors/NNS
``/``
the/DT
benefits/NNS
just/RB
are/VBP
n't/RB
worth/JJ
the/DT
risks/NNS
,/,
''/''
says/VBZ
Barbara/NNP
Roper/NNP
,/,
who/WP
follows/VBZ
financial-planning/JJ
issues/NNS
for/IN
the/DT
Consumer/NNP
Federation/NNP
of/IN
America/NNP
,/,
a/DT
consumer-advocacy/JJ
organization/NN
based/VBN
in/IN
Washington/NNP
./.
She/PRP
concedes/VBZ
that/IN
such/JJ
a/DT
position/NN
is/VBZ
``/``
unfair/JJ
''/''
to/TO
the/DT
thousands/NNS
of/IN
conscientious/JJ
and/CC
qualified/JJ
people/NNS
plying/VBG
the/DT
trade/NN
,/,
but/CC
as/IN
a/DT
consumer/NN
advocate/NN
she/PRP
feels/VBZ
impelled/VBN
to/TO
take/VB
it/PRP
./.
She/PRP
says/VBZ
her/PRP$
group/NN
used/VBN
to/TO
give/VB
tips/NNS
on/IN
selecting/VBG
planners/NNS
--/:
check/VB
educational/JJ
and/CC
experience/NN
credentials/NNS
,/,
consult/VB
regulators/NNS
and/CC
Better/NNP
Business/NNP
Bureaus/NNPS
--/:
but/CC
found/VBD
that/IN
even/RB
some/DT
people/NNS
who/WP
took/VBD
these/DT
steps/NNS
``/``
were/VBD
still/RB
getting/VBG
ripped/VBN
off/RP
./.
''/''
The/DT
bad/JJ
news/NN
,/,
however/RB
,/,
has/VBZ
n't/RB
been/VBN
bad/JJ
enough/RB
to/TO
kill/VB
the/DT
growing/VBG
demand/NN
for/IN
financial/JJ
planning/NN
./.
The/DT
Tax/NNP
Reform/NNP
Act/NNP
of/IN
1986/CD
,/,
which/WDT
eliminated/VBD
many/JJ
tax/NN
shelters/NNS
peddled/VBN
by/IN
planners/NNS
,/,
and/CC
the/DT
stock/NN
market/NN
crash/NN
the/DT
next/JJ
year/NN
did/VBD
cause/VB
a/DT
sharp/JJ
slump/NN
in/IN
such/JJ
demand/NN
,/,
and/CC
many/JJ
planners/NNS
had/VBD
to/TO
make/VB
an/DT
unplanned/JJ
exit/NN
from/IN
the/DT
business/NN
./.
But/CC
membership/NN
in/IN
the/DT
International/NNP
Association/NNP
of/IN
Financial/NNP
Planners/NNP
IAFP/NNP
the/DT
industry/NN
's/POS
biggest/JJS
trade/NN
group/NN
,/,
is/VBZ
still/RB
nearly/RB
triple/JJ
what/WP
it/PRP
was/VBD
in/IN
1980/CD
,/,
and/CC
it/PRP
's/VBZ
believed/VBN
that/IN
the/DT
ranks/NNS
of/IN
planners/NNS
who/WP
do/VBP
n't/RB
belong/VB
to/TO
any/DT
group/NN
have/VBP
soared/VBN
as/RB
well/RB
./.
An/DT
estimated/VBN
10/CD
million/CD
Americans/NNS
are/VBP
now/RB
using/VBG
financial/JJ
planners/NNS
,/,
and/CC
the/DT
pool/NN
of/IN
capital/NN
they/PRP
influence/VBP
is/VBZ
enormous/JJ
./.
A/DT
survey/NN
of/IN
54,000/CD
of/IN
them/PRP
conducted/VBN
by/IN
the/DT
IAFP/NNP
in/IN
April/NNP
showed/VBD
that/IN
these/DT
practitioners/NNS
alone/RB
had/VBD
controlled/VBN
or/CC
guided/VBN
the/DT
investment/NN
of/IN
$/$
154/CD
billion/CD
of/IN
their/PRP$
clients/NNS
'/POS
money/NN
in/IN
the/DT
previous/JJ
12/CD
months/NNS
./.
The/DT
sheer/JJ
number/NN
of/IN
planners/NNS
makes/VBZ
the/DT
business/NN
extremely/RB
difficult/JJ
,/,
if/IN
not/RB
impossible/JJ
,/,
to/TO
regulate/VB
./.
Even/RB
the/DT
minority/NN
of/IN
them/PRP
who/WP
must/MD
register/VB
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
as/IN
``/``
investment/NN
advisers/NNS
''/''
--/:
people/NNS
who/WP
are/VBP
in/IN
the/DT
business/NN
of/IN
counseling/VBG
others/NNS
on/IN
the/DT
buying/VBG
and/CC
selling/VBG
of/IN
securities/NNS
specifically/RB
--/:
have/VBP
been/VBN
enough/JJ
to/TO
swamp/VB
the/DT
agency/NN
's/POS
capacity/NN
./.
The/DT
SEC/NNP
has/VBZ
only/RB
about/RB
200/CD
staffers/NNS
assigned/VBN
to/TO
keep/VB
tabs/NNS
on/IN
investment/NN
advisers/NNS
--/:
about/RB
the/DT
same/JJ
as/IN
in/IN
1980/CD
--/:
even/RB
though/IN
the/DT
number/NN
of/IN
advisers/NNS
has/VBZ
tripled/VBN
to/TO
about/RB
15,000/CD
over/IN
the/DT
past/JJ
decade/NN
./.
Currently/RB
,/,
a/DT
registered/VBN
investment/NN
adviser/NN
can/MD
expect/VB
an/DT
SEC/NNP
audit/NN
only/RB
once/RB
every/DT
12/CD
years/NNS
./.
A/DT
lot/NN
of/IN
bad/JJ
things/NNS
can/MD
happen/VB
in/IN
12/CD
years/NNS
./.
``/``
It/PRP
does/VBZ
n't/RB
take/VB
a/DT
rocket/NN
scientist/NN
to/TO
figure/VB
out/RP
our/PRP$
problem/NN
,/,
''/''
says/VBZ
Kathryn/NNP
McGrath/NNP
,/,
director/NN
of/IN
the/DT
SEC/NNP
's/POS
division/NN
of/IN
investment/NN
management/NN
./.
So/IN
the/DT
SEC/NNP
has/VBZ
proposed/VBN
to/TO
Congress/NNP
that/IN
much/JJ
of/IN
the/DT
job/NN
of/IN
oversight/NN
be/VB
turned/VBN
over/RP
to/TO
an/DT
industry-funded/JJ
,/,
self-regulatory/JJ
organization/NN
patterned/VBN
on/IN
the/DT
National/NNP
Association/NNP
of/IN
Securities/NNP
Dealers/NNP
,/,
which/WDT
operates/VBZ
in/IN
the/DT
brokerage/NN
business/NN
./.
Such/JJ
an/DT
organization/NN
could/MD
,/,
among/IN
other/JJ
things/NNS
,/,
set/VBN
minimum/NN
standards/NNS
for/IN
competence/NN
,/,
ethics/NNS
and/CC
finances/NNS
and/CC
punish/VB
those/DT
investment/NN
advisers/NNS
who/WP
broke/VBD
the/DT
rules/NNS
./.
The/DT
proposal/NN
has/VBZ
set/VBN
off/RP
a/DT
lively/JJ
debate/NN
within/IN
an/DT
industry/NN
that/WDT
was/VBD
far/RB
from/IN
united/VBN
to/TO
begin/VB
with/RP
./.
Mr./NNP
Schwartz/NNP
,/,
the/DT
puckish/JJ
planner/NN
from/IN
Englewood/NNP
,/,
Colo./NNP
,/,
says/VBZ
that/IN
allowing/VBG
the/DT
business/NN
to/TO
police/VB
itself/PRP
would/MD
be/VB
``/``
like/IN
putting/VBG
Dracula/NNP
in/IN
charge/NN
of/IN
the/DT
blood/NN
bank/NN
./.
''/''
Mr./NNP
Gargan/NNP
,/,
the/DT
Tampa/NNP
planner/NN
who/WP
heads/VBZ
one/CD
trade/NN
group/NN
,/,
favors/VBZ
simply/RB
assessing/VBG
the/DT
industry/NN
and/CC
giving/VBG
the/DT
money/NN
to/TO
the/DT
SEC/NNP
to/TO
hire/VB
more/JJR
staff/NN
./.
Mr./NNP
Gargan/NNP
's/POS
views/NNS
are/VBP
not/RB
greeted/VBN
with/IN
wild/JJ
enthusiasm/NN
over/RB
at/IN
the/DT
IAFP/NNP
,/,
the/DT
major/JJ
industry/NN
organization/NN
./.
When/WRB
the/DT
IAFP/NNP
recently/RB
assembled/VBD
other/JJ
industry/NN
groups/NNS
to/TO
discuss/VB
common/JJ
standards/NNS
that/WDT
might/MD
be/VB
applied/VBN
to/TO
planners/NNS
,/,
Mr./NNP
Gargan/NNP
's/POS
group/NN
was/VBD
excluded/VBN
./.
That/DT
may/MD
be/VB
because/IN
Mr./NNP
Gargan/NNP
,/,
smarting/VBG
at/IN
what/WP
he/PRP
considered/VBD
slurs/NNS
on/IN
his/PRP$
membership/NN
standards/NNS
made/VBN
by/IN
the/DT
rival/JJ
group/NN
,/,
enrolled/VBD
his/PRP$

dog/NN
,/,
Beauregard/NNP
,/,
as/IN
a/DT
member/NN
of/IN
the/DT
IAFP/NNP
./.
Then/RB
he/PRP
sent/VBD
the/DT
pooch/NN
's/POS
picture/NN
with/IN
the/DT
certificate/NN
of/IN
membership/NN
--/:
it/PRP
was/VBD
made/VBN
out/RP
to/TO
``/``
Boris/NNP
`/``
Bo/NNP
'/''
Regaard/NNP
''/''
--/:
to/TO
every/DT
newspaper/NN
he/PRP
could/MD
think/VB
of/IN
./.
The/DT
states/NNS
have/VBP
their/PRP$
own/JJ
ideas/NNS
about/IN
regulation/NN
and/CC
certification/NN
./.
NASAA/NNP
,/,
the/DT
organization/NN
of/IN
state/NN
securities/NNS
regulators/NNS
,/,
is/VBZ
pushing/VBG
for/IN
a/DT
model/JJ
regulatory/JJ
statute/NN
already/RB
adopted/VBN
in/IN
eight/CD
states/NNS
./.
It/PRP
requires/VBZ
financial/JJ
planners/NNS
to/TO
register/VB
with/IN
states/NNS
,/,
pass/VB
competency/NN
tests/NNS
and/CC
reveal/VB
to/TO
customers/NNS
any/DT
conflicts/NNS
of/IN
interest/NN
./.
The/DT
most/RBS
common/JJ
conflict/NN
involves/VBZ
compensation/NN
./.
NASAA/NNP
estimates/VBZ
that/IN
nearly/RB
90/CD
%/NN
of/IN
planners/NNS
receive/VBP
some/DT
or/CC
all/DT
of/IN
their/PRP$
income/NN
from/IN
sales/NNS
commissions/NNS
on/IN
securities/NNS
,/,
insurance/NN
and/CC
other/JJ
financial/JJ
products/NNS
they/PRP
recommend/VBP
./.
The/DT
issue/NN
:/:
Is/VBZ
the/DT
planner/NN
putting/VBG
his/PRP$
clients/NNS
into/IN
the/DT
best/JJS
investments/NNS
,/,
or/CC
the/DT
ones/NNS
that/WDT
garner/VBP
the/DT
biggest/JJS
commissions/NNS
?/.
In/IN
1986/CD
the/DT
New/NNP
York/NNP
attorney/NN
general/NN
's/POS
office/NN
got/VBD
an/DT
order/NN
from/IN
a/DT
state/NN
court/NN
in/IN
Albany/NNP
shutting/VBG
down/RP
First/NNP
Meridian/NNP
Corp./NNP
,/,
an/DT
Albany/NNP
financial-planning/JJ
firm/NN
that/WDT
had/VBD
invested/VBN
$/$
55/CD
million/CD
on/IN
behalf/NN
of/IN
nearly/RB
1,000/CD
investors/NNS
./.
In/IN
its/PRP$
notice/NN
of/IN
action/NN
,/,
the/DT
attorney/NN
general/NN
said/VBD
the/DT
company/NN
had/VBD
promised/VBN
to/TO
put/VB
clients/NNS
into/IN
``/``
balanced/JJ
''/''
investment/NN
portfolios/NNS
;/:
instead/RB
,/,
the/DT
attorney/NN
general/NN
alleged/VBN
,/,
the/DT
company/NN
consistently/RB
shoved/VBD
unwary/JJ
customers/NNS
into/IN
high-risk/JJ
investments/NNS
in/IN
paintings/NNS
,/,
coins/NNS
and/CC
Florida/NNP
condos/NNS
./.
Those/DT
investments/NNS
paid/VBD
big/JJ
commissions/NNS
to/TO
First/NNP
Meridian/NNP
,/,
payments/NNS
investors/NNS
were/VBD
never/RB
told/VBN
about/IN
,/,
the/DT
attorney/NN
general/NN
alleged/VBD
./.
Investors/NNS
were/VBD
further/RB
assured/VBN
that/IN
only/RB
those/DT
with/IN
a/DT
minimun/NN
net/JJ
worth/NN
would/MD
be/VB
accepted/VBN
./.
In/IN
practice/NN
,/,
the/DT
attorney/NN
general/NN
alleged/VBN
in/IN
an/DT
affidavit/NN
,/,
if/IN
an/DT
investor/NN
had/VBD
access/NN
to/TO
cash/NN
``/``
the/DT
chances/NNS
of/IN
being/VBG
turned/VBD
down/RP
by/IN
First/NNP
Meridian/NNP
were/VBD
about/RB
as/RB
probable/JJ
as/IN
being/VBG
rejected/VBD
by/IN
the/DT
Book-of-the-Month/NNP
Club/NNP
./.
''/''
And/CC
,/,
the/DT
attorney/NN
general/NN
added/VBD
,/,
First/NNP
Meridian/NNP
's/POS
president/NN
,/,
Roger/NNP
V./NNP
Sala/NNP
,/,
portrayed/VBD
himself/PRP
as/IN
a/DT
``/``
financial/JJ
expert/NN
''/''
when/WRB
his/PRP$
qualifications/NNS
largely/RB
consisted/VBD
of/IN
a/DT
high-school/NN
diploma/NN
,/,
work/NN
as/IN
a/DT
real-estate/NN
and/CC
insurance/NN
salesman/NN
,/,
and/CC
a/DT
stint/NN
as/IN
supervisor/NN
at/IN
a/DT
highway/NN
toll/NN
booth/NN
./.
First/NNP
Meridian/NNP
and/CC
its/PRP$
officials/NNS
are/VBP
currently/RB
under/IN
investigation/NN
for/IN
possible/JJ
criminal/JJ
wrongdoing/NN
,/,
according/VBG
to/TO
a/DT
spokeswoman/NN
for/IN
the/DT
attorney/NN
general/NN
./.
Harry/NNP
Manion/NNP
,/,
Mr./NNP
Sala/NNP
's/POS
attorney/NN
,/,
says/VBZ
his/PRP$
client/NN
denies/VBZ
any/DT
wrongdoing/NN
and/CC
adds/VBZ
that/IN
the/DT
attorney/NN
general/NN
's/POS
contentions/NNS
about/IN
First/NNP
Meridian/NNP
's/POS
business/NN
practices/NNS
are/VBP
incorrect/JJ
./.
As/IN
for/IN
Mr./NNP
Sala/NNP
's/POS
qualifications/NNS
,/,
``/``
the/DT
snooty/JJ
attorneys/NNS
for/IN
the/DT
state/NN
of/IN
New/NNP
York/NNP
decided/VBD
Mr./NNP
Sala/NNP
was/VBD
n't/RB
qualified/VBD
because/IN
he/PRP
did/VBD
n't/RB
have/VB
a/DT
Harvard/NNP
degree/NN
,/,
''/''
says/VBZ
Mr./NNP
Manion/NNP
./.
Civil/JJ
suits/NNS
against/IN
planners/NNS
by/IN
clients/NNS
seeking/VBG
recovery/NN
of/IN
funds/NNS
are/VBP
increasingly/RB
common/JJ
./.
Two/CD
such/JJ
actions/NNS
,/,
both/DT
filed/VBD
earlier/RB
this/DT
year/NN
in/IN
Georgia/NNP
state/NN
court/NN
in/IN
Atlanta/NNP
,/,
could/MD
be/VB
particularly/RB
embarrassing/VBG
to/TO
the/DT
industry/NN
:/:
both/DT
name/VBP
J./NNP
Chandler/NNP
Peterson/NNP
,/,
an/DT
Atlanta/NNP
financial/JJ
planner/NN
who/WP
is/VBZ
a/DT
founder/NN
and/CC
past/NN
chairman/NN
of/IN
the/DT
IAFP/NNP
,/,
as/IN
defendant/NN
./.
One/CD
suit/NN
,/,
filed/VBN
by/IN
more/JJR
than/IN
three/CD
dozen/NN
investors/NNS
,/,
charges/VBZ
that/IN
Mr./NNP
Peterson/NNP
misused/VBD
much/JJ
of/IN
the/DT
$/$
9.7/CD
million/CD
put/VBD
into/IN
a/DT
limited/VBN
partnership/NN
that/IN
he/PRP
operated/VBD
and/CC
promoted/VBD
,/,
spending/VBG
some/DT
of/IN
it/PRP
to/TO
pay/VB
his/PRP$
own/JJ
legal/JJ
bills/NNS
and/CC
to/TO
invest/VB
in/IN
other/JJ
companies/NNS
in/IN
which/WDT
he/PRP
had/VBD
an/DT
interest/NN
./.
Those/DT
companies/NNS
,/,
in/IN
turn/NN
,/,
paid/VBD
Mr./NNP
Peterson/NNP
commissions/NNS
and/CC
fees/NNS
,/,
the/DT
suit/NN
alleges/VBZ
./.
The/DT
other/JJ
suit/NN
was/VBD
filed/VBN
by/IN
two/CD
men/NNS
in/IN
a/DT
dispute/NN
over/IN
$/$
100,000/CD
investments/NNS
each/DT
says/VBZ
he/PRP
made/VBD
with/IN
Mr./NNP
Peterson/NNP
as/IN
part/NN
of/IN
an/DT
effort/NN
to/TO
purchase/VB
the/DT
Bank/NNP
of/IN
Scottsdale/NNP
in/IN
Scottsdale/NNP
,/,
Ariz/NNP
./.
One/CD
plaintiff/NN
,/,
a/DT
doctor/NN
,/,
testified/VBD
in/IN
an/DT
affidavit/NN
that/IN
he/PRP
also/RB
gave/VBD
Mr./NNP
Peterson/NNP
$/$
50,000/CD
to/TO
join/VB
a/DT
sort/NN
of/IN
investment/NN
club/NN
which/WDT
essentially/RB
gave/VBD
the/DT
physician/NN
``/``
the/DT
privilege/NN
of/IN
making/VBG
additional/JJ
investments/NNS
''/''
with/IN
Mr./NNP
Peterson/NNP
./.
In/IN
affidavits/NNS
,/,
each/DT
plaintiff/NN
claims/VBZ
Mr./NNP
Peterson/NNP
promised/VBD
the/DT
bank/NN
purchase/NN
would/MD
be/VB
completed/VBN
by/IN
the/DT
end/NN
of/IN
1988/CD
or/CC
the/DT
money/NN
returned/VBD
./.
Mr./NNP
Peterson/NNP
took/VBD
the/DT
plaintiffs/NNS
'/POS
and/CC
other/JJ
investors/NNS
'/POS
money/NN
to/TO
a/DT
meeting/NN
of/IN
the/DT
bank/NN
's/POS
directors/NNS
./.
Wearing/VBG
a/DT
business/NN
suit/NN
and/CC
western-style/JJ
hat/NN
and/CC
boots/NNS
,/,
he/PRP
opened/VBD
up/RP
his/PRP$
briefcase/NN
and/CC
dumped/VBD
$/$
1/CD
million/CD
in/IN
cash/NN
on/IN
a/DT
table/NN
in/IN
front/NN
of/IN
the/DT
directors/NNS
,/,
says/VBZ
Myron/NNP
Diebel/NNP
,/,
the/DT
bank/NN
's/POS
president/NN
./.
``/``
He/PRP
said/VBD
he/PRP
wanted/VBD
to/TO
show/VB
the/DT
color/NN
of/IN
his/PRP$
money/NN
,/,
''/''
recalls/VBZ
Mr./NNP
Diebel/NNP
./.
Bank/NN
officials/NNS
,/,
however/RB
,/,
showed/VBD
him/PRP
the/DT
door/NN
,/,
and/CC
the/DT
sale/NN
never/RB
came/VBD
off/RP
./.
According/VBG
to/TO
the/DT
suit/NN
,/,
Mr./NNP
Peterson/NNP
has/VBZ
yet/RB
to/TO
return/VB
the/DT
plaintiffs/NNS
'/POS
investment/NN
./.
They/PRP
want/VBP
it/PRP
back/RB
./.
Mr./NNP
Peterson/NNP
declines/VBZ
to/TO
comment/VB
on/IN
specific/JJ
allegations/NNS
in/IN
the/DT
two/CD
suits/NNS
,/,
saying/VBG
he/PRP
prefers/VBZ
to/TO
save/VB
such/JJ
responses/NNS
for/IN
court/NN
./.
But/CC
he/PRP
does/VBZ
say/VB
that/IN
all/DT
of/IN
his/PRP$
activities/NNS
have/VBP
been/VBN
``/``
entirely/RB
proper/JJ
./.
''/''
On/IN
the/DT
suit/NN
by/IN
the/DT
limited/VBN
partners/NNS
,/,
he/PRP
says/VBZ
he/PRP
is/VBZ
considering/VBG
a/DT
defamation/NN
suit/NN
against/IN
the/DT
plaintiffs/NNS
./.
The/DT
suit/NN
,/,
he/PRP
adds/VBZ
,/,
``/``
is/VBZ
almost/RB
in/IN
the/DT
nature/NN
of/IN
a/DT
vendetta/NN
by/IN
a/DT
handful/NN
of/IN
disgruntled/JJ
people/NNS
./.
''/''
Rearding/VBG
the/DT
suit/NN
over/IN
the/DT
bank/NN
bid/NN
,/,
Mr./NNP
Peterson/NNP
says/VBZ
it/PRP
is/VBZ
filled/VBN
with/IN
``/``
inflammatory/JJ
language/NN
and/CC
half/JJ
truths/NNS
./.
''/''
He/PRP
declines/VBZ
to/TO
go/VB
into/IN
specifics/NNS
./.
Mr./NNP
Peterson/NNP
says/VBZ
the/DT
suits/NNS
against/IN
him/PRP
are/VBP
less/JJR
a/DT
measure/NN
of/IN
his/PRP$
work/NN
than/IN
they/PRP
are/VBP
a/DT
``/``
sign/NN
of/IN
the/DT
times/NNS
''/''
in/IN
which/WDT
people/NNS
generally/RB
are/VBP
more/RBR
prone/JJ
to/TO
sue/VB
./.
``/``
I/PRP
do/VBP
n't/RB
know/VB
anybody/NN
in/IN
the/DT
industry/NN
who/WP
has/VBZ
n't/RB
experienced/VBN
litigation/NN
,/,
''/''
he/PRP
says/VBZ
./.
Mr./NNP
Peterson/NNP
also/RB
says/VBZ
he/PRP
does/VBZ
n't/RB
consider/VB
himself/PRP
a/DT
financial/JJ
planner/NN
anymore/RB
./.
He/PRP
now/RB
calls/VBZ
himself/PRP
an/DT
``/``
investment/NN
banker/NN
./.
''/''
In/IN
many/JJ
scams/NNS
or/CC
alleged/VBN
scams/NNS
involving/VBG
planners/NNS
,/,
it/PRP
's/VBZ
plain/JJ
that/IN
only/RB
a/DT
modicum/NN
of/IN
common/JJ
sense/NN
on/IN
the/DT
part/NN
of/IN
the/DT
investors/NNS
would/MD
have/VB
kept/VBN
them/PRP
out/IN
of/IN
harm/NN
's/POS
way/NN
./.
Using/VBG
it/PRP
,/,
would/MD
n't/RB
a/DT
proessional/NN
hesitate/VB
to/TO
pay/VB
tens/NNS
of/IN
thousands/NNS
of/IN
dollars/NNS
just/RB
for/IN
a/DT
chance/NN
to/TO
invest/VB
witha/NN
planner/NN
?/.
Other/JJ
cases/NNS
go/VBP
to/TO
show/VB
that/IN
an/DT
old/JJ
saw/NN
still/RB
applies/VBZ
:/:
If/IN
it/PRP
sounds/VBZ
too/RB
good/JJ
to/TO
be/VB
true/JJ
,/,
it/PRP
probably/RB
is/VBZ
./.
Certificates/NNS
of/IN
deposit/NN
do/VBP
n't/RB
pay/VB
23/CD
%/NN
a/DT
year/NN
,/,
for/IN
example/NN
,/,
but/CC
that/DT
did/VBD
n't/RB
give/VB
pause/NN
to/TO
clients/NNS
of/IN
one/CD
Alabama/NNP
planner/NN
./.
Now/RB
they/PRP
're/VBP
losers/NNS
and/CC
he/PRP
's/VBZ
in/IN
jail/NN
in/IN
Mobile/NNP
County/NNP
./.
CDs/NNS
yielding/VBG
40/CD
%/NN
are/VBP
even/RB
more/RBR
implausible/JJ
--/:
especially/RB
when/WRB
the/DT
issuing/VBG
``/``
bank/NN
''/''
in/IN
the/DT
Marshall/NNP
Islands/NNP
is/VBZ
merely/RB
a/DT
mail/NN
drop/NN
watched/VBD
over/RP
by/IN
a/DT
local/JJ
gas-station/JJ
operator/NN
--/:
but/CC
investors/NNS
fell/VBD
for/IN
that/DT
one/CD
too/RB
./.
And/CC
the/DT
Colorado/NNP
planner/NN
who/WP
promised/VBD
to/TO
make/VB
some/DT
of/IN
his/PRP$
clients/NNS
millionaires/NNS
on/IN
investments/NNS
of/IN
as/RB
litle/JJ
as/IN
$/$
100/CD
?/.
Never/RB
mind/VB
./.
You/PRP
already/RB
know/VBP
the/DT
answer/NN
./.
Mr./NNP
Emshwiller/NNP
is/VBZ
a/DT
staff/NN
reporter/NN
in/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
's/POS
Los/NNP
Angeles/NNP
bureau/NN
./.
At/IN
the/DT
ritzy/JJ
Fashion/NNP
Island/NNP
Shopping/NNP
Center/NNP
,/,
the/DT
tanned/VBN
and/CC
elegant/JJ
ladies/NNS
of/IN
this/DT
wealthy/JJ
Southern/NNP
California/NNP
beach/NN
community/NN
disembark/VBP
from/IN
their/PRP$
Mercedes-Benzes/NNS
and/CC
BMWs/NNS
for/IN
another/DT
day/NN
of/IN
exercising/VBG
their/PRP$
credit/NN
cards/NNS
./.
They/PRP
root/VBP
among/IN
the/DT
designer/NN
offerings/NNS
at/IN
Neiman-Marcus/NNP
and/CC
Bullocks/NNP
Wilshire/NNP
./.
They/PRP
stroll/VBP
through/IN
the/DT
marble-encased/JJ
corridors/NNS
of/IN
the/DT
Atrium/NNP
Court/NNP
./.
They/PRP
graze/VBP
at/IN
the/DT
Farmers/NNP
Market/NNP
,/,
a/DT
combination/NN
gourmet/NN
food/NN
court/NN
and/CC
grocery/NN
store/NN
,/,
while/IN
a/DT
pianist/NN
accompanies/VBZ
the/DT
noon/NN
fashion/NN
show/NN
with/IN
a/DT
selection/NN
of/IN
dreamy/JJ
melodies/NNS
./.
``/``
The/DT
beautiful/JJ
look/NN
of/IN
wool/NN
,/,
''/''
croons/VBZ
the/DT
show/NN
's/POS
narrator/NN
,/,
``/``
slightly/RB
Victorian/JJ
in/IN
its/PRP$
influence/NN
.../:
./.
''/''
Meanwhile/RB
,/,
in/IN
the/DT
squat/JJ
office/NN
buildings/NNS
that/WDT
ring/VBP
Fashion/NNP
Island/NNP
,/,
the/DT
odds/NNS
are/VBP
good/JJ
that/IN
someone/NN
is/VBZ
getting/VBG
fleeced/VBN
./.
Law-enforcement/JJ
authorities/NNS
say/VBP
that/IN
at/IN
any/DT
given/VBN
time/NN
,/,
a/DT
host/NN
of/IN
fraudulent/JJ
telemarketing/NN
operations/NNS
mingle/VBP
with/IN
the/DT
many/JJ
legitimate/JJ
businesses/NNS
here/RB
./.
``/``
They/PRP
seem/VBP
to/TO
like/VB
these/DT
industrial/JJ
parks/NNS
,/,
''/''
says/VBZ
Kacy/NNP
McClelland/NNP
,/,
a/DT
postal/JJ
inspector/NN
who/WP
specializes/VBZ
in/IN
mail/NN
fraud/NN
./.
``/``
We/PRP
call/VBP
them/PRP
fraud/NN
farms/NNS
./.
''/''
Welcome/UH
to/TO
that/DT
welter/NN
of/IN
contradictions/NNS
known/VBN
as/IN
Newport/NNP
Beach/NNP
./.
This/DT
city/NN
of/IN
more/JJR
than/IN
70,000/CD
is/VBZ
known/VBN
for/IN
sunshine/NN
,/,
yachts/NNS
and/CC
rich/JJ
residents/NNS
./.
It/PRP
is/VBZ
also/RB
known/VBN
as/IN
the/DT
fraud/NN
capital/NN
of/IN
the/DT
U.S./NNP
,/,
dubbed/VBN
by/IN
investigators/NNS
and/CC
the/DT
media/NNS
as/IN
the/DT
``/``
Cote/NNP
de/IN
Fraud/NNP
''/''
./.
How/WRB
does/VBZ
a/DT
community/NN
famous/JJ
for/IN
its/PRP$
high/JJ
living/NN
end/VB
up/RP
as/IN
a/DT
haven/NN
for/IN
low-lifes/NNS
?/.
Clearly/RB
,/,
the/DT
existence/NN
of/IN
the/DT
former/JJ
lures/NNS
the/DT
latter/JJ
./.
The/DT
places/NNS
renowned/VBN
for/IN
breeding/VBG
bunco/NN
,/,
like/IN
the/DT
Miami/NNP
neighborhood/NN
known/VBN
as/IN
the/DT
``/``
Maggot/NNP
Mile/NNP
''/''
and/CC
Las/NNP
Vegas/NNP
's/POS
flashy/JJ
strip/NN
of/IN
casinos/NNS
,/,
invariably/RB
offer/VBP
fast/JJ
cars/NNS
,/,
high/JJ
rollers/NNS
,/,
glamorous/JJ
women/NNS
and/CC
lots/NNS
of/IN
sunshine/NN
./.
You/PRP
do/VBP
n't/RB
hear/VB
much/JJ
about/IN
unusual/JJ
concentrations/NNS
of/IN
fraud/NN
in/IN
Green/NNP
Bay/NNP
or/CC
Buffalo/NNP
./.
Con/NN
men/NNS
hate/VBP
snow/NN
./.
Newport/NNP
Beach/NNP
fits/VBZ
the/DT
scam/NN
artists/NNS
'/POS
specifications/NNS
perfectly/RB
./.
What/WP
more/JJR
could/MD
a/DT
con/JJ
man/NN
in/IN
search/NN
of/IN
the/DT
easy/JJ
life/NN
ask/VB
for/IN
?/.
Nothing/NN
seems/VBZ
hard/RB
here/RB
./.
The/DT
breezes/NNS
are/VBP
soft/JJ
,/,
the/DT
waves/NNS
lap/VBP
gently/RB
and/CC
the/DT
palm/NN
trees/NNS
sway/VBP
lazily/RB
./.
Nightlife/NN
is/VBZ
plentiful/JJ
./.
Moreover/RB
,/,
ostentation/NN
is/VBZ
appreciated/VBN
./.
The/DT
median/JJ
price/NN
of/IN
homes/NNS
is/VBZ
$/$
547,000/CD
;/:
more/JJR
than/IN
9,000/CD
vessels/NNS
fill/VBP
what/WP
the/DT
chamber/NN
of/IN
commerce/NN
calls/VBZ
the/DT
nation/NN
's/POS
largest/JJS
pleasure-boat/NN
harbor/NN
./.
``/``
Blondes/NNS
,/,
cocaine/NN
and/CC
Corvettes/NNS
,/,
''/''
mutters/NNS
Mr./NNP
McClelland/NNP
./.
``/``
That/DT
's/VBZ
what/WP
they/PRP
're/VBP
after/IN
./.
''/''
The/DT
rich/JJ
image/NN
of/IN
Newport/NNP
Beach/NNP
also/RB
helps/VBZ
lend/VB
the/DT
con/NN
artists/NNS
'/POS
operation/NN
an/DT
air/NN
of/IN
respectability/NN
./.
``/``
One/CD
reason/NN
they/PRP
use/VBP
Newport/NNP
Beach/NNP
is/VBZ
that/IN
it/PRP
sounds/VBZ
swankier/JJR
than/IN
most/JJS
addresses/NNS
,/,
''/''
says/VBZ
David/NNP
Katz/NNP
,/,
a/DT
U.S./NNP
attorney/NN
who/WP
,/,
until/IN
recently/RB
,/,
headed/VBD
a/DT
multi-agency/JJ
Southern/NNP
California/NNP
fraud/NN
task/NN
force/NN
./.
``/``
Newport/NNP
Beach/NNP
is/VBZ
known/VBN
in/IN
Rhode/NNP
Island/NNP
for/IN
having/VBG
a/DT
lot/NN
of/IN
rich/JJ
people/NNS
./.
''/''
No/DT
wonder/NN
all/DT
kinds/NNS
of/IN
big-time/JJ
scams/NNS
have/VBP
flourished/VBN
here/RB
,/,
from/IN
phony/JJ
tax-sheltered/JJ
Bible/NNP
sales/NNS
to/TO
crooked/JJ
car/NN
dealers/NNS
to/TO
bogus/JJ
penny-stock/JJ
traders/NNS
./.
But/CC
above/IN
all/DT
,/,
this/DT
is/VBZ
the/DT
national/JJ
headquarters/NN
for/IN
boiler-room/NN
operators/NNS
,/,
those/DT
slick-talking/JJ
snake-oil/JJ
salesmen/NNS
who/WP
use/VBP
the/DT
telephone/NN
to/TO
extract/VB
money/NN
from/IN
the/DT
gullible/JJ
and/CC
the/DT
greedy/JJ
and/CC
then/RB
vanish/VBP
./.
Because/IN
only/RB
a/DT
fraction/NN
of/IN
them/PRP
are/VBP
ever/RB
prosecuted/VBN
,/,
nobody/NN
really/RB
knows/VBZ
how/WRB
much/JJ
money/NN
bogus/JJ
telemarketing/NN
operators/NNS
really/RB
harvest/VBP
./.
``/``
I/PRP
've/VBP
heard/VBN
that/IN
there/EX
is/VBZ
$/$
40/CD
billion/CD
taken/VBN
in/RP
nationwide/JJ
by/IN
boiler/NN
rooms/NNS
every/DT
year/NN
,/,
''/''
Mr./NNP
McClelland/NNP
says/VBZ
./.
``/``
If/IN
that/DT
's/VBZ
true/JJ
,/,
Orange/NNP
County/NNP
has/VBZ
to/TO
be/VB
at/IN
least/JJS
10/CD
%/NN
of/IN
that/DT
./.
''/''
And/CC
most/JJS
of/IN
the/DT
truly/RB
big/JJ
scams/NNS
in/IN
Orange/NNP
County/NNP
seem/VBP
to/TO
originate/VB
in/IN
Newport/NNP
Beach/NNP
or/CC
one/CD
of/IN
the/DT
other/JJ
well-heeled/JJ
communities/NNS
that/WDT
surround/VBP
this/DT
sliver-like/JJ
city/NN
that/WDT
hooks/VBZ
around/IN
a/DT
point/NN
of/IN
land/NN
on/IN
the/DT
California/NNP
coast/NN
south/RB
of/IN
Los/NNP
Angeles/NNP
./.
In/IN
fact/NN
,/,
sophisticated/JJ
big-bucks/JJ
boiler-room/NN
scams/NNS
are/VBP
known/VBN
generically/RB
among/IN
law-enforcement/JJ
types/NNS
as/IN
``/``
Newport/NNP
Beach/NNP
''/''
operations/NNS
./.
That/DT
contrasts/VBZ
with/IN
the/DT
penny-ante/JJ
sales/NNS
of/IN
things/NNS
such/JJ
as/IN
pen-and-pencil/JJ
sets/NNS
and/CC
office/NN
supplies/NNS
that/WDT
are/VBP
known/VBN
as/IN
``/``
Hollywood/NNP
''/''
scams/NNS
./.
Newport/NNP
Beach/NNP
telemarketers/NNS
concentrate/VBP
on/IN
precious/JJ
metals/NNS
and/CC
oil-leasing/NN
deals/NNS
that/WDT
typically/RB
cost/VBP
thousands/NNS
of/IN
dollars/NNS
a/DT
shot/NN
./.
The/DT
investors/NNS
range/VBP
from/IN
elderly/JJ
widows/NNS
to/TO
affluent/JJ
professionals/NNS
./.
In/IN
one/CD
ingenious/JJ
recent/JJ
example/NN
of/IN
a/DT
Newport/NNP
Beach/NNP
boiler/NN
room/NN
,/,
prospective/JJ
investors/NNS
in/IN
Capital/NNP
Trust/NNP
Inc./NNP
were/VBD
allegedly/RB
told/VBN
that/IN
their/PRP$
investment/NN
in/IN
precious/JJ
metals/NNS
was/VBD
insured/VBN
against/IN
losses/NNS
``/``
caused/VBN
by/IN
employees/NNS
due/JJ
to/TO
dishonesty/NN
,/,
destruction/NN
or/CC
disappearance/NN
,/,
''/''
according/VBG
to/TO
an/DT
indictment/NN
handed/VBD
up/RP
by/IN
a/DT
federal/JJ
grand/JJ
jury/NN
in/IN
Los/NNP
Angeles/NNP
last/JJ
month/NN
./.
Thus/RB
falsely/RB
reassured/VBN
,/,
investors/NNS
sent/VBD
$/$
11.4/CD
million/CD
to/TO
the/DT
Newport/NNP
Beach/NNP
company/NN
,/,
most/JJS
of/IN
which/WDT
was/VBD
diverted/VBN
to/TO
unauthorized/JJ
uses/NNS
,/,
the/DT
indictment/NN
charges/NNS
./.
Douglas/NNP
Jones/NNP
,/,
an/DT
attorney/NN
representing/VBG
Richard/NNP
O./NNP
Kelly/NNP
Sr./NNP
,/,
the/DT
chairman/NN
and/CC
president/NN
of/IN
Capital/NNP
Trust/NNP
,/,
says/VBZ
his/PRP$
client/NN
denies/VBZ
that/IN
there/EX
was/VBD
any/DT
attempt/NN
to/TO
defraud/VB
investors/NNS
./.
``/``
There/EX
were/VBD
some/DT
business/NN
deals/NNS
that/WDT
went/VBD
bad/JJ
,/,
''/''
Mr./NNP
Jones/NNP
says/VBZ
,/,
``/``
but/CC
no/DT
intent/NN
to/TO
defraud/VB
./.
''/''
Newport/NNP
Beach/NNP
operations/NNS
differ/VBP
from/IN
the/DT
Hollywood/NNP
boiler/NN
rooms/NNS
in/IN
style/NN
as/RB
well/RB
as/IN
in/IN
dollars/NNS
./.
Traditionally/RB
,/,
boiler/NN
rooms/NNS
operate/VBP
on/IN
the/DT
cheap/JJ
,/,
since/IN
few/JJ
,/,
if/IN
any/DT
,/,
customers/NNS
ever/RB
visit/VBP
their/PRP$
offices/NNS
./.
Indeed/UH
,/,
the/DT
name/NN
derives/VBZ
from/IN
the/DT
tendency/NN
among/IN
telemarketing/NN
scammers/NNS
to/TO
rent/VB
cheap/JJ
basement/NN
space/NN
,/,
near/IN
the/DT
boiler/NN
room/NN
./.
But/CC
,/,
says/VBZ
Mr./NNP
Katz/NNP
,/,
the/DT
U.S./NNP
attorney/NN
,/,
``/``
the/DT
interesting/JJ
thing/NN
about/IN
Newport/NNP
Beach/NNP
operations/NNS
is/VBZ
that/IN
they/PRP
give/VBP
themselves/PRP
the/DT
indulgence/NN
of/IN
beautiful/JJ
offices/NNS
,/,
with/IN
plush/JJ
furnishings/NNS
./.
When/WRB
we/PRP
go/VBP
there/RB
,/,
it/PRP
's/VBZ
quite/RB
different/JJ
from/IN
these/DT
Hollywood/NNP
places/NNS
where/WRB
the/DT
sandwiches/NNS
are/VBP
spread/VBN
out/RP
on/IN
the/DT
table/NN
and/CC
the/DT
people/NNS
are/VBP
picking/VBG
their/PRP$
noses/NNS
./.
''/''
The/DT
Newport/NNP
Beach/NNP
operators/NNS
also/RB
tend/VBP
to/TO
indulge/VB
themselves/PRP
privately/RB
./.
Investigators/NNS
cite/VBP
the/DT
case/NN
of/IN
Matthew/NNP
Valentine/NNP
,/,
who/WP
is/VBZ
currently/RB
serving/VBG
a/DT
six-year/JJ
sentence/NN
at/IN
Lompoc/NNP
Federal/NNP
Prison/NNP
for/IN
his/PRP$
role/NN
in/IN
Intech/NNP
Investment/NNP
Corp./NNP
,/,
which/WDT
promised/VBD
investors/NNS
returns/NNS
of/IN
as/RB
much/JJ
as/IN
625/CD
%/NN
on/IN
precious/JJ
metals/NNS
./.
Mr./NNP
Valentine/NNP
,/,
who/WP
pleaded/VBD
guilty/JJ
to/TO
five/CD
counts/NNS
of/IN
fraud/NN
in/IN
federal/JJ
court/NN
in/IN
Los/NNP
Angeles/NNP
,/,
drove/VBD
a/DT
leased/VBN
Mercedes/NNS
and/CC
lived/VBD
in/IN
an/DT
expensive/JJ
home/NN
on/IN
Lido/NNP
Isle/NNP
,/,
an/DT
island/NN
in/IN
Newport/NNP
's/POS
harbor/NN
,/,
according/VBG
to/TO
investigators/NNS
./.
With/IN
the/DT
$/$
3/CD
million/CD
received/VBN
from/IN
investors/NNS
,/,
he/PRP
took/VBD
frequent/JJ
junkets/NNS
with/IN
friends/NNS
to/TO
exotic/JJ
locales/NNS
and/CC
leased/VBD
an/DT
expensive/JJ
BMW/NNP
for/IN
his/PRP$
girlfriend/NN
,/,
whom/WP
he/PRP
met/VBD
at/IN
the/DT
shop/NN
where/WRB
he/PRP
got/VBD
his/PRP$
custom-tailored/JJ
suits/NNS
./.
``/``
It/PRP
's/VBZ
amazing/JJ
the/DT
amount/NN
of/IN
money/NN
that/WDT
goes/VBZ
up/IN
their/PRP$
nose/NN
,/,
out/IN
to/TO
the/DT
dog/NN
track/NN
or/CC
to/TO
the/DT
tables/NNS
in/IN
Las/NNP
Vegas/NNP
,/,
''/''
Mr./NNP
Katz/NNP
says/VBZ
./.
All/DT
this/DT
talk/NN
of/IN
boiler/NN
rooms/NNS
and/CC
fraud/NN
is/VBZ
unnerving/VBG
to/TO
the/DT
city/NN
's/POS
legitimate/JJ
business/NN
element/NN
./.
Vincent/NNP
M/NNP
Ciavarella/NNP
,/,
regional/JJ
manager/NN
of/IN
Property/NNP
Management/NNP
Systems/NNP
,/,
insists/VBZ
he/PRP
does/VBZ
n't/RB
know/VB
of/IN
any/DT
bogus/JJ
telemarketers/NNS
operating/VBG
in/IN
the/DT
1.6/CD
million/CD
square/JJ
feet/NNS
of/IN
office/NN
space/NN
around/IN
Fashion/NNP
Island/NNP
that/IN
his/PRP$
company/NN
leases/VBZ
for/IN
Irvine/NNP
Co./NNP
,/,
the/DT
owner/NN
and/CC
developer/NN
of/IN
the/DT
project/NN
./.
Mr./NNP
Ciavarella/NNP
has/VBZ
rejected/VBN
a/DT
few/JJ
prospective/JJ
tenants/NNS
who/WP
provided/VBD
``/``
incomplete/JJ
''/''
financial/JJ
information/NN
and/CC
acknowledges/VBZ
that/IN
illegitimate/JJ
operators/NNS
``/``
are/VBP
not/RB
easily/RB
detectable/JJ
./.
''/''
(/(
Investigators/NNS
stress/VBP
that/IN
building/NN
owners/NNS
are/VBP
victims/NNS
,/,
too/RB
,/,
since/IN
boiler/NN
rooms/NNS
often/RB
leave/VBP
without/IN
paying/VBG
rent/NN
./.
Richard/NNP
Luehrs/NNP
,/,
president/NN
of/IN
the/DT
Newport/NNP
Harbor/NNP
Area/NNP
Chamber/NNP
of/IN
Commerce/NNP
,/,
calls/VBZ
boiler/NN
rooms/NNS
a/DT
``/``
negative/JJ
we/PRP
wish/VBP
we/PRP
could/MD
get/VB
rid/VB
of/IN
./.
''/''
Actually/RB
,/,
``/``
we/PRP
do/VBP
n't/RB
get/VB
much/JJ
negative/JJ
publicity/NN
about/IN
this/DT
,/,
''/''
he/PRP
insists/VBZ
,/,
``/``
except/IN
for/IN
the/DT
press/NN
who/WP
write/VBP
about/IN
it/PRP
./.
''/''
Mr./NNP
Lancaster/NNP
is/VBZ
deputy/JJ
chief/NN
of/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
's/POS
Dallas/NNP
bureau/NN
./.
YOU/PRP
WENT/VBD
to/TO
college/NN
and/CC
thought/VBD
you/PRP
got/VBD
an/DT
education/NN
./.
Now/RB
you/PRP
discover/VBP
that/IN
you/PRP
never/RB
learned/VBD
the/DT
most/RBS
important/JJ
lesson/NN
:/:
How/WRB
to/TO
send/VB
your/PRP$
kids/NNS
to/TO
college/NN
./.
True/JJ
,/,
when/WRB
you/PRP
went/VBD
to/TO
college/NN
,/,
there/RB
was/VBD
n't/RB
that/RB
much/JJ
to/TO
learn/VB
./.
Stick/VB
some/DT
money/NN
in/IN
an/DT
interest-bearing/JJ
account/NN
and/CC
watch/VB
it/PRP
grow/VB
./.
Now/RB
,/,
investment/NN
salesmen/NNS
say/VBP
it/PRP
's/VBZ
time/NN
to/TO
take/VB
some/DT
risks/NNS
if/IN
you/PRP
want/VBP
the/DT
kind/NN
of/IN
returns/NNS
that/WDT
will/MD
buy/VB
your/PRP$
toddler/NN
a/DT
ticket/NN
to/TO
Prestige/NNP
U./NNP
in/IN
18/CD
years/NNS
./.
In/IN
short/JJ
,/,
throw/VB
away/RB
the/DT
passbook/NN
and/CC
go/VB
for/IN
the/DT
glory/NN
./.
The/DT
reason/NN
is/VBZ
cost/NN
./.
Nothing/NN
in/IN
the/DT
annals/NN
of/IN
tuition/NN
readied/VBD
parents/NNS
for/IN
the/DT
1980s/NNS
./.
Tuitions/NNS
at/IN
private/JJ
colleges/NNS
rose/VBD
154/CD
%/NN
in/IN
the/DT
10/CD
years/NNS
ended/VBN
in/IN
June/NNP
of/IN
this/DT
year/NN
;/:
that/DT
's/VBZ
twice/RB
the/DT
77/CD
%/NN
increase/NN
in/IN
consumer/NN
prices/NNS
for/IN
the/DT
same/JJ
period/NN
./.
A/DT
year/NN
at/IN
Harvard/NNP
now/RB
goes/VBZ
for/IN
$/$
19,395/CD
./.
By/IN
2007/CD
,/,
when/WRB
this/DT
year/NN
's/POS
newborns/NNS
hit/VBP
campus/NN
,/,
a/DT
four-year/JJ
Ivy/NNP
League/NNP
sheepskin/NN
will/MD
cost/VB
$/$
300,000/CD
,/,
give/VB
or/CC
take/VB
a/DT
few/JJ
pizzas-with-everything/NNS
at/IN
exam/NN
time/NN
./.
Stanford/NNP
,/,
MIT/NNP
and/CC
other/JJ
utmosts/NNS
will/MD
cost/VB
no/RB
less/JJR
./.
So/RB
what/WP
's/VBZ
a/DT
parent/NN
to/TO
do/VB
?/.
Some/DT
investment/NN
advisers/NNS
are/VBP
suggesting/VBG
,/,
in/IN
effect/NN
,/,
a/DT
bet/NN
on/IN
a/DT
start-up/JJ
investment/NN
pool/NN
--/:
maybe/RB
even/RB
on/IN
margin/NN
./.
Others/NNS
prefer/VBP
deep-discount/JJ
zero-coupon/JJ
bonds/NNS
./.
Still/RB
others/NNS
say/VBP
,/,
Why/WRB
not/RB
take/VB
a/DT
chance/NN
on/IN
a/DT
high-octane/JJ
growth/NN
fund/NN
?/.
``/``
You/PRP
're/VBP
not/RB
going/VBG
to/TO
make/VB
it/PRP
in/IN
a/DT
5/CD
%/NN
bank/NN
account/NN
,/,
''/''
says/VBZ
James/NNP
Riepe/NNP
,/,
director/NN
of/IN
mutual/JJ
funds/NNS
at/IN
T./NNP
Rowe/NNP
Price/NNP
./.
To/TO
get/VB
the/DT
necessary/JJ
growth/NN
,/,
adds/VBZ
Murray/NNP
Ruffel/NNP
,/,
a/DT
marketing/NN
official/NN
at/IN
the/DT
Financial/NNP
Programs/NNP
mutual-fund/JJ
group/NN
,/,
``/``
you/PRP
need/VBP
to/TO
go/VB
to/TO
the/DT
stock/NN
market/NN
./.
''/''
In/IN
other/JJ
words/NNS
,/,
a/DT
little/JJ
volatility/NN
never/RB
hurt/VBD
./.
It/PRP
never/RB
hurt/VBD
anyone/NN
,/,
that/DT
is/VBZ
,/,
unless/IN
the/DT
growth/NN
funds/NNS
do/VBP
n't/RB
grow/VB
when/WRB
you/PRP
need/VBP
them/PRP
to/TO
./.
Or/CC
the/DT
zero-coupon/JJ
bonds/NNS
turn/VBP
out/RP
not/RB
to/TO
have/VB
been/VBN
discounted/VBN
deeply/RB
enough/RB
to/TO
pay/VB
your/PRP$
kid/NN
's/POS
tuition/NN
./.
That/DT
's/VBZ
the/DT
dilemma/NN
for/IN
today/NN
's/POS
parent/NN
./.
Although/IN
many/JJ
experts/NNS
are/VBP
advising/VBG
risk/NN
,/,
no/DT
one/PRP
has/VBZ
a/DT
good/JJ
answer/NN
for/IN
you/PRP
if/IN
the/DT
risk/NN
does/VBZ
n't/RB
pay/VB
off/RP
./.
Help/NN
may/MD
be/VB
on/IN
the/DT
way/NN
./.
The/DT
antitrust/JJ
division/NN
of/IN
the/DT
Justice/NNP
Department/NNP
is/VBZ
investigating/VBG
the/DT
oddly/RB
similar/JJ
tuition/NN
charges/NNS
and/CC
increases/NNS
among/IN
the/DT
top/JJ
schools/NNS
./.
Fear/NN
of/IN
the/DT
price/NN
police/NN
could/MD
help/VB
cool/VB
things/NNS
off/RP
in/IN
the/DT
1990s/NNS
./.
And/CC
then/RB
there/EX
's/VBZ
always/RB
State/NNP
U/NNP
./.
But/CC
parents/NNS
'/POS
craving/NN
for/IN
a/DT
top-rated/JJ
education/NN
for/IN
their/PRP$
children/NNS
is/VBZ
growing/VBG
like/IN
their/PRP$
taste/NN
for/IN
fancy/JJ
wheels/NNS
and/CC
vintage/NN
wine/NN
./.
Belatedly/RB
aware/JJ
of/IN
public/JJ
concern/NN
,/,
lawmakers/NNS
and/CC
financial/JJ
middlemen/NNS
are/VBP
working/VBG
overtime/RB
to/TO
create/VB
and/CC
sell/VB
college/NN
savings/NNS
and/CC
investment/NN
schemes/NNS
./.
Their/PRP$
message/NN
,/,
explicit/JJ
or/CC
implicit/JJ
,/,
is/VBZ
that/IN
a/DT
good/JJ
college/NN
will/MD
cost/VB
so/RB
much/JJ
by/IN
whenever/WRB
you/PRP
want/VBP
it/PRP
that/IN
the/DT
tried/VBN
and/CC
true/JJ
wo/MD
n't/RB
do/VB
anymore/RB
./.
Forget/VB
about/IN
Treasury/NNP
bills/NNS
or/CC
a/DT
money-market/JJ
fund/NN
./.
The/DT
latest/JJS
wave/NN
of/IN
marketing/NN
is/VBZ
instructive/JJ
./.
Several/JJ
outfits/NNS
--/:
including/VBG
the/DT
Financial/NNP
Programs/NNP
,/,
Franklin/NNP
,/,
and/CC
T./NNP
Rowe/NNP
Price/NNP
mutual-fund/JJ
groups/NNS
and/CC
the/DT
Edward/NNP
D./NNP
Jones/NNP
brokerage/NN
house/NN
--/:
are/VBP
advertising/VBG
``/``
college/NN
planner/NN
''/''
tables/NNS
and/CC
charts/NNS
that/WDT
tell/VBP
you/PRP
how/WRB
much/JJ
you/PRP
need/VBP
to/TO
put/VB
aside/RB
regularly/RB
./.
The/DT
calculations/NNS
generally/RB
rely/VBP
on/IN
an/DT
after-tax/JJ
rate/NN
of/IN
return/NN
of/IN
8/CD
%/NN
annually/RB
--/:
a/DT
rate/NN
historically/RB
obtainable/JJ
by/IN
the/DT
individual/NN
in/IN
only/RB
one/CD
place/NN
,/,
the/DT
stock/NN
market/NN
./.
Most/JJS
of/IN
the/DT
mailers/NNS
are/VBP
free/JJ
,/,
but/CC
Denver-based/JJ
Financial/NNP
Programs/NNP
sells/VBZ
,/,
for/IN
$/$
15/CD
,/,
a/DT
version/NN
customized/VBN
to/TO
the/DT
age/NN
of/IN
the/DT
child/NN
and/CC
the/DT
college/NN
of/IN
choice/NN
./.
The/DT
figures/NNS
are/VBP
shocking/JJ
./.
To/TO
build/VB
a/DT
nest/NN
egg/NN
that/WDT
would/MD
pay/VB
for/IN
Stanford/NNP
when/WRB
a/DT
current/JJ
first-grader/NN
reaches/VBZ
college/NN
age/NN
,/,
parents/NNS
would/MD
need/VB
to/TO
set/VB
aside/RB
$/$
773.94/CD
a/DT
month/NN
--/:
for/IN
12/CD
years/NNS
./.
They/PRP
can/MD
cut/VB
this/DT
to/TO
$/$
691.09/CD
a/DT
month/NN
if/IN
the/DT
investing/NN
keeps/VBZ
up/RP
through/IN
college/NN
./.
And/CC
they/PRP
can/MD
further/RBR
reduce/VB
the/DT
monthly/JJ
amount/NN
if/IN
they/PRP
start/VBP
saving/VBG
earlier/RBR
--/:
when/WRB
mother/NN
and/CC
child/NN
come/VBP
home/NN
from/IN
the/DT
hospital/NN
./.
Plugging/VBG
a/DT
cheaper/JJR
college/NN
into/IN
the/DT
formulas/NNS
still/RB
does/VBZ
n't/RB
generate/VB
an/DT
installment/JJ
most/JJS
people/NNS
can/MD
live/VB
with/IN
./.
Using/VBG
a/DT
recent/JJ
average/JJ
private-school/JJ
cost/NN
of/IN
about/RB
$/$
12,500/CD
a/DT
year/NN
,/,
T./NNP
Rowe/NNP
Price/NNP
's/POS
planner/NN
prescribes/VBZ
$/$
450/CD
monthly/JJ
if/IN
the/DT
plan/NN
begins/VBZ
when/WRB
the/DT
child/NN
is/VBZ
six/CD
./.
Since/IN
the/DT
formula/NN
assumes/VBZ
an/DT
8/CD
%/NN
before-tax/JJ
return/NN
in/IN
a/DT
mutual/JJ
fund/NN
,/,
there/EX
would/MD
also/RB
be/VB
$/$
16,500/CD
in/IN
taxes/NNS
to/TO
pay/VB
over/IN
the/DT
12/CD
years/NNS
./.
Not/RB
everyone/NN
is/VBZ
so/RB
pessimistic/JJ
./.
``/``
People/NNS
are/VBP
basically/RB
peddling/VBG
a/DT
lot/NN
of/IN
fear/NN
,/,
''/''
says/VBZ
Arthur/NNP
Hauptman/NNP
,/,
a/DT
consultant/NN
to/TO
the/DT
American/NNP
Council/NNP
on/IN
Education/NNP
in/IN
Washington/NNP
./.
He/PRP
takes/VBZ
issue/NN
with/IN
projections/NNS
that/WDT
do/VBP
n't/RB
factor/NN
in/IN
students/NNS
'/POS
own/JJ
contribution/NN
,/,
which/WDT
reduces/VBZ
most/JJS
parents/NNS
'/POS
burden/NN
substantially/RB
./.
Still/RB
,/,
he/PRP
says/VBZ
,/,
``/``
it/PRP
's/VBZ
no/DT
bad/JJ
thing/NN
''/''
if/IN
all/DT
the/DT
marketing/NN
prods/VBZ
people/NNS
into/IN
putting/VBG
aside/RB
a/DT
little/JJ
more/JJR
./.
``/``
The/DT
situation/NN
you/PRP
want/VBP
to/TO
avoid/VB
is/VBZ
having/VBG
somebody/NN
not/RB
save/VB
anything/NN
and/CC
hope/VBP
they/PRP
'll/MD
be/VB
able/JJ
to/TO
do/VB
it/PRP
out/IN
of/IN
current/JJ
income/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
That/DT
's/VBZ
crazy/JJ
./.
''/''
His/PRP$
advice/NN
:/:
Do/VBP
n't/RB
panic/VB
./.
Parents/NNS
,/,
he/PRP
says/VBZ
,/,
should/MD
aim/VB
at/IN
whatever/WDT
regular/JJ
investment/NN
sum/NN
they/PRP
can/MD
afford/VB
./.
Half/DT
the/DT
amount/NN
that/IN
the/DT
investment/NN
tables/NNS
suggest/VBP
might/MD
be/VB
a/DT
good/JJ
goal/NN
,/,
he/PRP
adds/VBZ
./.
That/DT
way/NN
,/,
parents/NNS
will/MD
reduce/VB
borrowings/NNS
and/CC
outlays/NNS
from/IN
current/JJ
income/NN
when/WRB
the/DT
time/NN
comes/VBZ
to/TO
pay/VB
tuition/NN
./.
Mr./NNP
Hauptman/NNP
reckons/VBZ
that/IN
the/DT
best/JJS
investment/NN
choice/NN
is/VBZ
mutual/JJ
funds/NNS
because/IN
they/PRP
are/VBP
managed/VBN
and/CC
over/IN
time/NN
have/VBP
nearly/RB
kept/VBN
up/RP
with/IN
the/DT
broad/JJ
stock/NN
averages/NNS
./.
He/PRP
favors/VBZ
either/RB
an/DT
all-stock/JJ
fund/NN
or/CC
a/DT
balanced/VBN
fund/NN
that/IN
mixes/VBZ
both/DT
stocks/NNS
and/CC
bonds/NNS
./.
In/IN
their/PRP$
anxiety/NN
,/,
however/RB
,/,
parents/NNS
and/CC
other/JJ
student/NN
benefactors/NNS
are/VBP
flocking/VBG
to/TO
new/JJ
schemes/NNS
./.
They/PRP
have/VBP
laid/VBN
out/RP
about/RB
$/$
1/CD
billion/CD
for/IN
so-called/JJ
baccalaureate/NN
zero-coupon/JJ
municipal/JJ
bonds/NNS
--/:
so/RB
far/RB
offered/VBN
by/IN
Connecticut/NNP
,/,
Illinois/NNP
,/,
Virginia/NNP
and/CC
eight/CD
other/JJ
states/NNS
./.
And/CC
they/PRP
have/VBP
bought/VBN
about/RB
$/$
500/CD
million/CD
in/IN
prepaid-tuition/JJ
plans/NNS
,/,
offered/VBN
in/IN
Michigan/NNP
,/,
Florida/NNP
and/CC
Wyoming/NNP
./.
The/DT
prepaid/JJ
plans/NNS
take/VBP
payment/NN
today/NN
--/:
usually/RB
at/IN
current/JJ
tuitions/NNS
or/CC
at/IN
a/DT
slight/JJ
discount/NN
--/:
for/IN
a/DT
promise/NN
that/DT
tuition/NN
will/MD
be/VB
covered/VBN
tomorrow/NN
./.
The/DT
baccalaureate/NN
bonds/NNS
--/:
tax-free/JJ
,/,
offered/VBN
in/IN
small/JJ
denominations/NNS
and/CC
usually/RB
containing/VBG
a/DT
provision/NN
that/IN
they/PRP
wo/MD
n't/RB
be/VB
called/VBN
before/IN
maturity/NN
--/:
seem/VBP
to/TO
be/VB
tailor-made/JJ
for/IN
college/NN
savers/NNS
./.
Like/IN
other/JJ
zeros/NNS
,/,
they/PRP
pay/VBP
all/DT
their/PRP$
interest/NN
at/IN
maturity/NN
,/,
meaning/VBG
that/IN
buyers/NNS
can/MD
time/VB
things/NNS
so/RB
that/IN
their/PRP$
bonds/NNS
pay/VBP
off/RP
just/RB
when/WRB
Junior/NNP
graduates/VBZ
from/IN
high/JJ
school/NN
./.
Their/PRP$
compounding/NN
effect/NN
is/VBZ
also/RB
alluring/JJ
./.
In/IN
June/NNP
,/,
Virginia/NNP
sold/VBD
bonds/NNS
for/IN
$/$
268.98/CD
that/WDT
will/MD
pay/VB
$/$
1,000/CD
in/IN
2009/CD
./.
But/CC
Richard/NNP
Anderson/NNP
,/,
head/NN
of/IN
the/DT
Forum/NNP
for/IN
College/NNP
Financing/NNP
Alternatives/NNP
,/,
at/IN
Columbia/NNP
University/NNP
,/,
a/DT
research/NN
group/NN
partly/RB
financed/VBN
by/IN
the/DT
federal/JJ
government/NN
,/,
says/VBZ
zeros/NNS
are/VBP
particularly/RB
ill-suited/JJ
./.
Their/PRP$
price/NN
falls/VBZ
further/RBR
than/IN
that/DT
of/IN
other/JJ
bonds/NNS
when/WRB
inflation/NN
and/CC
interest/NN
rates/NNS
kick/VBP
up/RP
./.
That/DT
wo/MD
n't/RB
matter/VB
if/IN
they/PRP
are/VBP
held/VBN
to/TO
maturity/NN
,/,
but/CC
if/IN
,/,
for/IN
any/DT
reason/NN
,/,
the/DT
parents/NNS
need/VBP
to/TO
sell/VB
them/PRP
before/RB
then/RB
,/,
there/EX
could/MD
be/VB
a/DT
severe/JJ
loss/NN
of/IN
principal/NN
./.
Had/VBD
zeros/NNS
been/VBN
available/JJ
in/IN
1972/CD
and/CC
had/VBD
parents/NNS
bought/VBN
a/DT
face/NN
amount/NN
equal/JJ
to/TO
four/CD
years/NNS
'/POS
tuition/NN
at/IN
the/DT
time/NN
,/,
aiming/VBG
for/IN
their/PRP$
children/NNS
's/POS
1988/CD
enrollment/NN
,/,
they/PRP
would/MD
have/VB
been/VBN
left/VBN
with/IN
only/RB
enough/JJ
to/TO
pay/VB
for/IN
two/CD
years/NNS
,/,
Mr./NNP
Anderson/NNP
figures/VBZ
./.
Most/JJS
other/JJ
bonds/NNS
,/,
however/RB
,/,
would/MD
probably/RB
not/RB
have/VB
fared/VBN
much/RB
better/RBR
./.
The/DT
prepaid/VBN
plans/NNS
may/MD
be/VB
a/DT
good/JJ
bet/NN
,/,
provided/VBN
the/DT
guarantee/NN
of/IN
future/JJ
tuition/NN
is/VBZ
secure/JJ
./.
Issuing/NN
states/NNS
generally/RB
limit/VBP
the/DT
guarantees/NNS
to/TO
in-state/JJ
institutions/NNS
,/,
however/RB
,/,
and/CC
buyers/NNS
get/VBP
refunds/NNS
without/IN
much/JJ
interest/NN
if/IN
the/DT
children/NNS
do/VBP
n't/RB
attend/VB
the/DT
specified/VBN
schools/NNS
./.
Two/CD
private/JJ
groups/NNS
are/VBP
seeking/VBG
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
approval/NN
for/IN
plans/NNS
that/WDT
could/MD
be/VB
more/RBR
broadly/RB
transferable/JJ
./.
Mr./NNP
Anderson/NNP
wants/VBZ
the/DT
prestige/NN
colleges/NNS
to/TO
sponsor/VB
such/PDT
a/DT
plan/NN
./.
The/DT
issue/NN
here/RB
may/MD
be/VB
the/DT
soundness/NN
of/IN
the/DT
guarantee/NN
./.
Prepayments/NNS
,/,
much/RB
like/IN
mutual-fund/JJ
purchases/NNS
,/,
are/VBP
pooled/VBN
for/IN
investment/NN
./.
Sponsors/NNS
are/VBP
naturally/RB
counting/VBG
on/IN
their/PRP$
ability/NN
to/TO
keep/VB
ahead/RB
of/IN
tuition/NN
inflation/NN
with/IN
investment/NN
returns/NNS
./.
But/CC
buyers/NNS
are/VBP
essentially/RB
betting/VBG
on/IN
a/DT
start-up/JJ
investment/NN
fund/NN
with/IN
no/DT
track/NN
record/NN
--/:
and/CC
some/DT
have/VBP
been/VBN
encouraged/VBN
to/TO
borrow/VB
to/TO
do/VB
so/RB
./.
One/CD
problem/NN
is/VBZ
that/IN
the/DT
Internal/NNP
Revenue/NNP
Service/NNP
has/VBZ
decided/VBN
that/IN
the/DT
investment/NN
earnings/NNS
and/CC
gains/NNS
of/IN
the/DT
sponsors/NNS
'/POS
funds/NNS
are/VBP
taxable/JJ
./.
The/DT
colleges/NNS
,/,
as/IN
educational/JJ
institutions/NNS
,/,
had/VBD
hoped/VBN
that/DT
would/MD
n't/RB
be/VB
the/DT
case/NN
./.
Based/VBN
on/IN
historical/JJ
rates/NNS
of/IN
return/NN
,/,
Mr./NNP
Anderson/NNP
reckons/VBZ
a/DT
100/CD
%/NN
stock/NN
portfolio/NN
,/,
indexed/VBN
to/TO
the/DT
market/NN
,/,
would/MD
have/VB
kept/VBD
up/RP
with/IN
tuition/NN
and/CC
taxes/NNS
in/IN
the/DT
20th/JJ
century/NN
./.
But/CC
sponsors/NNS
might/MD
not/RB
pick/VB
the/DT
stocks/NNS
that/WDT
will/MD
match/VB
the/DT
market/NN
./.
And/CC
they/PRP
're/VBP
leaning/VBG
more/RBR
toward/IN
fixed/VBN
income/NN
,/,
whose/WP$
returns/NNS
after/IN
tax/NN
have/VBP
trailed/VBN
tuition/NN
increases/NNS
./.
``/``
I/PRP
'm/VBP
not/RB
sure/JJ
they/PRP
're/VBP
going/VBG
to/TO
make/VB
it/PRP
work/VB
,/,
''/''
says/VBZ
Mr./NNP
Anderson/NNP
./.
What/WP
happens/VBZ
if/IN
the/DT
sponsors/NNS
do/VBP
n't/RB
have/VB
the/DT
cash/NN
to/TO
pay/VB
the/DT
tuitions/NNS
?/.
Florida/NNP
and/CC
Wyoming/NNP
have/VBP
backed/VBN
up/RP
their/PRP$
guarantees/NNS
with/IN
the/DT
full/JJ
faith/NN
and/CC
credit/NN
of/IN
the/DT
state/NN
governments/NNS
,/,
meaning/VBG
that/IN
taxpayers/NNS
will/MD
pick/VB
up/IN
any/DT
slack/NN
./.
Not/RB
so/RB
Michigan/NNP
./.
Its/PRP$
plan/NN
is/VBZ
set/VBN
up/RP
as/IN
an/DT
independent/JJ
agency/NN
./.
The/DT
state/NN
says/VBZ
there/EX
's/VBZ
no/DT
worry/NN
--/:
investment/NN
returns/NNS
,/,
combined/VBN
with/IN
fees/NNS
and/CC
the/DT
gains/NNS
from/IN
unused/JJ
plans/NNS
,/,
will/MD
provide/VB
all/DT
the/DT
cash/NN
it/PRP
needs/VBZ
./.
Mr./NNP
Putka/NNP
covers/VBZ
education/NN
from/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
's/POS
Boston/NNP
bureau/NN
./.
If/IN
you/PRP
start/VBP
saving/VBG
for/IN
your/PRP$
child/NN
's/POS
eduction/NN
on/IN
Jan./NNP
1/CD
,/,
1990/CD
,/,
here/RB
's/VBZ
the/DT
monthly/JJ
sum/NN
you/PRP
will/MD
need/VB
to/TO
invest/VB
to/TO
pay/VB
for/IN
four/CD
years/NNS
at/IN
Yale/NNP
,/,
Notre/NNP
Dame/NNP
and/CC
University/NNP
of/IN
Minnesota/NNP
./.
Figures/NNS
assume/VBP
a/DT
7/CD
%/NN
annual/JJ
rise/NN
in/IN
tuition/NN
,/,
fees/NNS
,/,
room/NN
and/CC
board/NN
and/CC
an/DT
8/CD
%/NN
annual/JJ
investment/NN
return/NN
./.
Note/NN
:/:
These/DT
figures/NNS
are/VBP
only/JJ
for/IN
mandatory/JJ
charges/NNS
and/CC
do/VBP
n't/RB
include/VB
books/NNS
,/,
transportation/NN
etc/NN
./.
\*/NN
For/IN
in-state/JJ
students/NNS
Source/NN
:/:
PaineWebber/NNP
Inc/NNP
./.
AMONG/IN
THE/DT
CATFISH/NNS
farmers/NNS
in/IN
the/DT
watery/JJ
delta/JJ
land/NN
of/IN
Humphreys/NNP
County/NNP
,/,
Miss./NNP
,/,
Allen/NNP
D./NNP
Tharp/NNP
of/IN
Isola/NNP
was/VBD
one/CD
of/IN
the/DT
best/RBS
known/VBN
and/CC
most/RBS
enterprising/JJ
./.
He/PRP
sold/VBD
quarter-inch/JJ
fingerlings/NNS
to/TO
stock/VB
other/JJ
farmers/NNS
'/POS
ponds/NNS
,/,
and/CC
he/PRP
bought/VBD
back/RB
one-pound-or-so/JJ
food-fish/NNS
that/WDT
he/PRP
``/``
live-hauled/VBD
''/''
to/TO
market/NN
along/IN
with/IN
his/PRP$
own/JJ
whiskery/JJ
crop/NN
./.
And/CC
he/PRP
nearly/RB
always/RB
bought/VBD
and/CC
sold/VBD
for/IN
cash/NN
./.
Along/IN
the/DT
way/NN
,/,
Mr./NNP
Tharp/NNP
omitted/VBD
a/DT
total/NN
of/IN
$/$
1.5/CD
million/CD
from/IN
his/PRP$
receipts/NNS
reported/VBN
on/IN
federal/JJ
tax/NN
returns/NNS
for/IN
three/CD
years/NNS
./.
The/DT
returns/NNS
landed/VBD
in/IN
the/DT
hands/NNS
of/IN
an/DT
Internal/NNP
Revenue/NNP
Service/NNP
criminal/JJ
investigator/NN
,/,
Samuel/NNP
James/NNP
Baker/NNP
./.
Mr./NNP
Baker/NNP
interviewed/VBD
or/CC
wrote/VBD
to/TO
hundreds/NNS
of/IN
catfish/NN
farmers/NNS
,/,
live-haulers/NNS
and/CC
processors/NNS
throughout/IN
the/DT
South/NNP
before/IN
coming/VBG
up/RP
with/IN
detailed/JJ
estimates/NNS
of/IN
purchases/NNS
and/CC
sales/NNS
,/,
in/IN
pounds/NNS
and/CC
dollars/NNS
,/,
by/IN
Mr./NNP
Tharp/NNP
and/CC
others/NNS
./.
Unknown/JJ
to/TO
Mr./NNP
Tharp/NNP
,/,
he/PRP
had/VBD
fouled/VBN
his/PRP$
net/NN
on/IN
a/DT
special/JJ
IRS/NNP
project/NN
to/TO
catch/VB
catfish/NN
farmers/NNS
and/CC
haulers/NNS
inclined/VBN
to/TO
cheat/VB
on/IN
their/PRP$
taxes/NNS
./.
Confronted/VBN
with/IN
the/DT
evidence/NN
,/,
Mr./NNP
Tharp/NNP
pleaded/VBD
guilty/JJ
to/TO
one/CD
charge/NN
of/IN
filing/NN
a/DT
false/JJ
return/NN
and/CC
was/VBD
fined/VBN
$/$
5,000/CD
and/CC
sentenced/VBN
to/TO
18/CD
months/NNS
in/IN
prison/NN
./.
He/PRP
also/RB
owes/VBZ
a/DT
lot/NN
of/IN
back/JJ
taxes/NNS
,/,
interest/NN
and/CC
civil/JJ
fraud/NN
penalties/NNS
./.
A/DT
lot/NN
of/IN
taxpayers/NNS
out/IN
there/EX
are/VBP
n't/RB
as/RB
paranoid/JJ
as/IN
one/PRP
might/MD
think/VB
./.
Federal/JJ
and/CC
state/NN
tax/NN
enforcers/NNS
develop/VBP
many/JJ
group/NN
targets/NNS
for/IN
investigation/NN
,/,
on/IN
the/DT
basis/NN
of/IN
occupation/NN
,/,
high/JJ
income/NN
,/,
type/NN
of/IN
income/NN
,/,
or/CC
some/DT
other/JJ
characteristic/NN
that/WDT
may/MD
signal/VB
an/DT
opportunity/NN
or/CC
tendency/NN
to/TO
hide/VB
income/NN
or/CC
exaggerate/VB
deductions/NNS
./.
Many/JJ
professions/NNS
long/RB
have/VBP
seemed/VBN
to/TO
be/VB
targets/NNS
because/IN
of/IN
the/DT
exotic/JJ
or/CC
ludicrous/JJ
efforts/NNS
of/IN
some/DT
members/NNS
to/TO
offset/VB
high/JJ
income/NN
with/IN
fake/JJ
losses/NNS
from/IN
phony/JJ
tax/NN
shelters/NNS
:/:
dentists/NNS
who/WP
invested/VBD
in/IN
dubiously/RB
dubbed/VBN
foreign/JJ
films/NNS
or/CC
airline/NN
pilots/NNS
who/WP
raised/VBD
racehorses/NNS
on/IN
their/PRP$
days/NNS
off/RB
./.
Mail-order/NN
ministers/NNS
have/VBP
been/VBN
squelched/VBN
./.
Now/RB
,/,
television/NN
and/CC
radio/NN
evangelists/NNS
are/VBP
under/IN
scrutiny/NN
./.
The/DT
IRS/NNP
recently/RB
won/VBD
part/NN
of/IN
its/PRP$
long-running/JJ
battle/NN
with/IN
the/DT
Church/NNP
of/IN
Scientology/NNP
over/IN
exemptions/NNS
when/WRB
the/DT
U.S./NNP
Supreme/NNP
Court/NNP
held/VBD
that/IN
members/NNS
'/POS
payments/NNS
to/TO
the/DT
church/NN
were/VBD
n't/RB
deductible/JJ
because/IN
the/DT
members/NNS
received/VBD
services/NNS
in/IN
return/NN
./.
IRS/NNP
statistics/NNS
show/VBP
that/IN
the/DT
more/JJR
persistent/JJ
hiders/NNS
of/IN
income/NN
among/IN
sole/JJ
proprietors/NNS
of/IN
businesses/NNS
include/VBP
used-car/JJ
dealers/NNS
,/,
entertainment/NN
producers/NNS
,/,
masons/NNS
,/,
roofers/NNS
,/,
and/CC
taxi/NN
owners/NNS
./.
Small/JJ
businesses/NNS
in/IN
general/JJ
account/VBP
for/IN
almost/RB
40/CD
%/NN
of/IN
unreported/JJ
personal/JJ
income/NN
,/,
the/DT
IRS/NNP
has/VBZ
said/VBD
./.
Once/IN
such/JJ
abuses/NNS
become/VBP
so/RB
pervasive/JJ
,/,
the/DT
IRS/NNP
builds/VBZ
another/DT
factor/NN
into/IN
its/PRP$
secret/JJ
computer/NN
formula/NN
for/IN
selecting/NN
returns/NNS
for/IN
audit/NN
and/CC
does/VBZ
n't/RB
need/VB
special/JJ
projects/NNS
for/IN
them/PRP
./.
San/NNS
Franciscans/NNS
have/VBP
a/DT
much/RB
higher/JJR
incidence/NN
of/IN
audits/NN
than/IN
average/JJ
because/IN
more/JJR
of/IN
them/PRP
score/VBP
high/RB
under/IN
that/DT
formula/NN
,/,
not/RB
because/IN
IRS/NNP
agents/NNS
envy/VBP
their/PRP$
life/NN
styles/NNS
./.
Many/JJ
openings/NNS
for/IN
mass/JJ
cheating/NN
,/,
such/JJ
as/IN
questionable/JJ
tax/NN
shelters/NNS
and/CC
home/NN
offices/NNS
,/,
have/VBP
gaped/VBN
so/RB
broadly/RB
that/IN
Congress/NNP
has/VBZ
passed/VBN
stringent/JJ
laws/NNS
to/TO
close/VB
them/PRP
./.
Deductions/NNS
of/IN
charitable/JJ
gifts/NNS
of/IN
highly/RB
valued/VBN
art/NN
now/RB
must/MD
be/VB
accompanied/VBN
by/IN
appraisals/NNS
./.
And/CC
laws/NNS
requiring/VBG
the/DT
reporting/NN
of/IN
more/JJR
varieties/NNS
of/IN
transactions/NNS
have/VBP
enabled/VBN
the/DT
IRS/NNP
to/TO
rely/VB
on/IN
computers/NNS
to/TO
ferret/VB
out/IN
discrepancies/NNS
with/IN
returns/NNS
and/CC
to/TO
generate/VB
form-letter/NN
inquiries/NNS
to/TO
taxpayers/NNS
./.
Unreported/JJ
alimony/NN
income/NN
can/MD
be/VB
spotted/VBN
by/IN
computer/NN
because/IN
a/DT
payer/NN
of/IN
alimony/NN
who/WP
gets/VBZ
a/DT
deduction/NN
the/DT
former/JJ
spouse/NN
's/POS
Social/NNP
Security/NNP
number/NN
./.
Passport/NN
applicants/NNS
now/RB
must/MD
give/VB
Social/NNP
Security/NNP
numbers/NNS
,/,
enabling/VBG
the/DT
IRS/NNP
to/TO
see/VB
whether/IN
Americans/NNS
living/VBG
abroad/RB
are/VBP
filing/VBG
required/VBN
U.S./NNP
returns/NNS
./.
But/CC
while/IN
IRS/NNP
computers/NNS
focus/VBP
routinely/RB
on/IN
target/NN
groups/NNS
like/IN
these/DT
,/,
the/DT
agency/NN
has/VBZ
assigned/VBN
many/JJ
agents/NNS
to/TO
special/JJ
projects/NNS
that/WDT
need/VBP
more/RBR
personal/JJ
attention/NN
./.
In/IN
most/JJS
cases/NNS
,/,
the/DT
IRS/NNP
says/VBZ
,/,
these/DT
projects/NNS
are/VBP
local/JJ
or/CC
regional/JJ
,/,
rather/RB
than/IN
national/JJ
,/,
and/CC
arise/VBP
because/IN
auditors/NNS
in/IN
an/DT
area/NN
detect/VBP
some/DT
pattern/NN
of/IN
abuse/NN
among/IN
,/,
say/VB
,/,
factory/NN
workers/NNS
claiming/VBG
that/IN
having/VBG
a/DT
multitude/NN
of/IN
dependents/NNS
frees/VBZ
them/PRP
from/IN
tax/NN
withholding/NN
or/CC
yacht/NN
owners/NNS
deducting/VBG
losses/NNS
from/IN
sideline/NN
charter/NN
businesses/NNS
./.
The/DT
national/JJ
office/NN
currently/RB
has/VBZ
21/CD
noncriminal/JJ
audit/NN
projects/NNS
,/,
according/VBG
to/TO
Marshall/NNP
V./NNP
Washburn/NNP
,/,
deputy/NN
assistant/NN
commissioner/NN
for/IN
examination/NN
./.
Auditors/NNS
involved/VBN
in/IN
noncriminal/JJ
projects/NNS
ca/MD
n't/RB
send/VB
anyone/NN
to/TO
jail/NN
,/,
but/CC
they/PRP
can/MD
make/VB
life/NN
miserable/JJ
in/IN
other/JJ
ways/NNS
--/:
for/IN
one/CD
,/,
by/IN
imposing/VBG
some/DT
of/IN
the/DT
150/CD
different/JJ
civil/JJ
penalties/NNS
for/IN
negligence/NN
,/,
failure/NN
to/TO
file/VB
a/DT
return/NN
,/,
and/CC
the/DT
like/JJ
./.
The/DT
targeted/JJ
audit/NN
groups/NNS
include/VBP
direct/JJ
sellers/NNS
--/:
people/NNS
who/WP
sell/VBP
cosmetics/NNS
,/,
housewares/NNS
and/CC
other/JJ
items/NNS
door/NN
to/TO
door/NN
or/CC
at/IN
home/NN
parties/NNS
--/:
and/CC
employers/NNS
who/WP
label/VBP
workers/NNS
as/IN
independent/JJ
contractors/NNS
instead/RB
of/IN
employees/NNS
,/,
to/TO
avoid/VB
the/DT
employer/NN
share/NN
of/IN
payroll/NN
taxes/NNS
./.
Other/JJ
projects/NNS
look/VBP
for/IN
offenders/NNS
among/IN
waiters/NNS
who/WP
get/VBP
cash/NN
tips/NNS
,/,
people/NNS
who/WP
engage/VBP
in/IN
large/JJ
cash/NN
transactions/NNS
,/,
and/CC
people/NNS
whose/WP$
returns/NNS
show/VBP
they/PRP
sold/VBD
a/DT
home/NN
for/IN
a/DT
profit/NN
without/IN
reinvesting/VBG
the/DT
capital/NN
gain/NN
in/IN
another/DT
home/NN
by/IN
the/DT
end/NN
of/IN
the/DT
same/JJ
year/NN
;/:
the/DT
gain/NN
must/MD
be/VB
rolled/VBN
over/RP
within/IN
two/CD
years/NNS
to/TO
defer/VB
tax/NN
./.
And/CC
now/RB
that/IN
returns/NNS
must/MD
show/VB
dependents/NNS
'/POS
Social/NNP
Security/NNP
numbers/NNS
,/,
the/DT
IRS/NNP
wants/VBZ
to/TO
see/VB
which/WDT
dependents/NNS
show/VBP
up/RP
on/IN
more/JJR
than/IN
one/CD
return/NN
--/:
and/CC
which/WDT
dependents/NNS
turn/VBP
out/RP
to/TO
be/VB
deceased/VBN
./.
Impetus/NN
for/IN
the/DT
direct-seller/NN
project/NN
came/VBD
from/IN
a/DT
congressional/JJ
hearing/NN
some/DT
years/NNS
back/RB
./.
It/PRP
prompted/VBD
an/DT
IRS/NNP
study/NN
that/WDT
found/VBD
many/JJ
sellers/NNS
were/VBD
concealing/VBG
income/NN
and/CC
treating/VBG
large/JJ
amounts/NNS
of/IN
nondeductible/JJ
travel/NN
and/CC
other/JJ
personal/JJ
expenses/NNS
as/IN
business/NN
costs/NNS
,/,
Mr./NNP
Washburn/NNP
says/VBZ
./.
The/DT
study/NN
provided/VBD
criteria/NNS
for/IN
singling/VBG
out/RP
returns/NNS
of/IN
``/``
potentially/RB
noncompliant/JJ
''/''
taxpayers/NNS
who/WP
report/VBP
low/JJ
income/NN
and/CC
large/JJ
expenses/NNS
from/IN
a/DT
part-time/JJ
business/NN
./.
The/DT
Tax/NNP
Court/NNP
recently/RB
denied/VBD
business/NN
deductions/NNS
by/IN
Mr./NNP
and/CC
Mrs./NNP
Peter/NNP
S./NNP
Rubin/NNP
of/IN
Cherry/NNP
Hill/NNP
,/,
N.J./NNP
,/,
who/WP
both/DT
were/VBD
part-time/JJ
distributors/NNS
of/IN
Amway/NNP
products/NNS
in/IN
addition/NN
to/TO
their/PRP$
regular/JJ
jobs/NNS
as/IN
sales/NNS
people/NNS
in/IN
other/JJ
fields/NNS
./.
For/IN
1984/CD
,/,
they/PRP
reported/VBD
gross/JJ
income/NN
of/IN
$/$
1,647/CD
from/IN
Amway/NNP
sales/NNS
,/,
offset/VBN
by/IN
expenses/NNS
totaling/VBG
$/$
16,746/CD
--/:
including/VBG
car/NN
costs/NNS
of/IN
$/$
6,805/CD
and/CC
travel/NN
and/CC
entertainment/NN
costs/NNS
of/IN
$/$
5,088/CD
./.
The/DT
Tax/NNP
Court/NNP
did/VBD
n't/RB
believe/VB
that/IN
the/DT
Rubins/NNS
,/,
who/WP
earned/VBD
$/$
65,619/CD
in/IN
their/PRP$
regular/JJ
jobs/NNS
,/,
treated/VBD
the/DT
sideline/NN
as/IN
a/DT
real/JJ
business/NN
and/CC
derived/VBD
``/``
merely/RB
incidental/JJ
elements/NNS
of/IN
recreation/NN
and/CC
other/JJ
personal/JJ
pleasure/NN
and/CC
benefits/NNS
''/''
from/IN
it/PRP
./.
The/DT
Direct/NNP
Selling/NNP
Association/NNP
,/,
a/DT
trade/NN
group/NN
,/,
points/VBZ
out/RP
that/IN
its/PRP$
members/NNS
,/,
which/WDT
include/VBP
Amway/NNP
Corp./NNP
,/,
cooperate/VBP
with/IN
the/DT
IRS/NNP
to/TO
distribute/VB
tax-compliance/NN
material/NN
to/TO
sales/JJ
people/NNS
and/CC
are/VBP
helping/VBG
to/TO
prepare/VB
a/DT
public-service/JJ
television/NN
program/NN
on/IN
the/DT
subject/NN
./.
The/DT
independent-contractor/JJ
project/NN
,/,
which/WDT
began/VBD
in/IN
1988/CD
,/,
involves/VBZ
about/RB
350/CD
IRS/NNP
agents/NNS
./.
In/IN
the/DT
fiscal/JJ
nine/CD
months/NNS
ended/VBN
June/NNP
30/CD
,/,
reports/VBZ
Raymond/NNP
P./NNP
Keenan/NNP
,/,
assistant/NN
commissioner/NN
for/IN
collection/NN
,/,
they/PRP
examined/VBD
about/RB
13,000/CD
employers/NNS
,/,
assessed/VBN
more/JJR
than/IN
$/$
67/CD
million/CD
in/IN
delinquent/JJ
employment/NN
taxes/NNS
,/,
and/CC
reclassified/VBD
about/RB
56,000/CD
workers/NNS
as/IN
employees/NNS
instead/RB
of/IN
self-employed/JJ
contractors/NNS
./.
The/DT
number/NN
of/IN
misclassified/VBN
workers/NNS
may/MD
be/VB
in/IN
the/DT
millions/NNS
,/,
mostly/RB
paid/VBN
by/IN
small/JJ
firms/NNS
./.
Many/JJ
workers/NNS
,/,
especially/RB
professionals/NNS
,/,
want/VBP
to/TO
remain/VB
independent/JJ
to/TO
avoid/VB
tax/NN
withholding/NN
and/CC
to/TO
continue/VB
to/TO
deduct/VB
many/JJ
expenses/NNS
that/IN
employees/NNS
ca/MD
n't/RB
./.
But/CC
many/JJ
others/NNS
,/,
who/WP
want/VBP
to/TO
qualify/VB
for/IN
employee/NN
benefits/NNS
and/CC
unemployment/NN
compensation/NN
,/,
become/VBP
tipsters/NNS
for/IN
the/DT
IRS/NNP
,/,
says/VBZ
Jerry/NNP
Lackey/NNP
,/,
who/WP
manages/VBZ
the/DT
IRS/NNP
project/NN
's/POS
force/NN
of/IN
nine/CD
agents/NNS
in/IN
north/JJ
central/JJ
Florida/NNP
from/IN
Orlando/NNP
./.
Firms/NNS
that/WDT
are/VBP
paying/VBG
employment/NN
taxes/NNS
also/RB
provide/VBP
leads/NNS
to/TO
competitors/NNS
that/WDT
are/VBP
n't/RB
,/,
he/PRP
says/VBZ
./.
In/IN
his/PRP$
area/NN
,/,
Mr./NNP
Lackey/NNP
continues/VBZ
,/,
the/DT
miscreant/JJ
employers/NNS
most/RBS
commonly/RB
are/VBP
in/IN
construction/NN
--/:
doing/VBG
framing/NN
,/,
drywall/NN
,/,
masonry/NN
and/CC
similar/JJ
work/NN
./.
But/CC
a/DT
medical/JJ
clinic/NN
with/IN
about/RB
20/CD
employees/NNS
wrongly/RB
listed/VBN
all/DT
of/IN
them/PRP
--/:
including/VBG
physicians/NNS
and/CC
receptionists/NNS
--/:
as/IN
independent/JJ
contractors/NNS
./.
The/DT
IRS/NNP
assessed/VBD
the/DT
clinic/NN
$/$
350,000/CD
in/IN
back/JJ
payroll/NN
taxes/NNS
./.
It/PRP
assessed/VBD
nearly/RB
$/$
500,000/CD
against/IN
a/DT
cruise-ship/NN
company/NN
that/IN
carried/VBD
about/RB
100/CD
deckhands/NNS
,/,
cooks/NNS
,/,
bartenders/NNS
,/,
entertainers/NNS
and/CC
other/JJ
employees/NNS
as/IN
self-employed/JJ
independents/NNS
./.
Revenue-short/JJ
states/NNS
also/RB
are/VBP
becoming/VBG
more/RBR
aggressive/JJ
pursuers/NNS
of/IN
tax/NN
delinquents/NNS
,/,
and/CC
perhaps/RB
none/NN
tracks/VBZ
them/PRP
down/RP
with/IN
more/JJR
relish/NN
than/IN
does/VBZ
New/NNP
York/NNP
since/IN
it/PRP
acquired/VBD
an/DT
$/$
80/CD
million/CD
computer/NN
system/NN
in/IN
1985/CD
./.
The/DT
state/NN
's/POS
tax/NN
enforcers/NNS
have/VBP
amassed/VBN
data/NN
bases/NNS
from/IN
other/JJ
New/NNP
York/NNP
agencies/NNS
that/WDT
license/VBP
or/CC
register/VBP
professionals/NNS
and/CC
businesses/NNS
;/:
from/IN
exchange/NN
agreements/NNS
with/IN
the/DT
IRS/NNP
,/,
24/CD
other/JJ
states/NNS
,/,
and/CC
two/CD
Canadian/JJ
provinces/NNS
,/,
and/CC
even/RB
from/IN
phonebook/NN
Yellow/NNP
Pages/NNP
./.
Thus/RB
armed/VBN
for/IN
massive/JJ
matching/NN
of/IN
documents/NNS
by/IN
computer/NN
,/,
they/PRP
single/VBP
out/RP
high-income/JJ
groups/NNS
,/,
looking/VBG
primarily/RB
for/IN
people/NNS
who/WP
have/VBP
n't/RB
filed/VBN
New/NNP
York/NNP
income-tax/NN
returns/NNS
./.
The/DT
state/NN
has/VBZ
combed/VBN
through/IN
records/NNS
relating/VBG
to/TO
architects/NNS
,/,
stockbrokers/NNS
,/,
lawyers/NNS
in/IN
the/DT
New/NNP
York/NNP
City/NNP
area/NN
,/,
construction/NN
workers/NNS
from/IN
out/IN
of/IN
the/DT
state/NN
,/,
and/CC
homeowners/NNS
who/WP
claim/VBP
to/TO
be/VB
residents/NNS
of/IN
other/JJ
states/NNS
--/:
especially/RB
Florida/NNP
,/,
which/WDT
has/VBZ
no/DT
personal/JJ
income/NN
tax/NN
./.
Soon/RB
to/TO
feel/VB
the/DT
glare/NN
of/IN
attention/NN
are/VBP
lawyers/NNS
elsewhere/RB
in/IN
the/DT
state/NN
,/,
doctors/NNS
,/,
dentists/NNS
,/,
and/CC
accountants/NNS
,/,
says/VBZ
Frederick/NNP
G./NNP
Hicks/NNP
,/,
director/NN
of/IN
the/DT
tax-department/JJ
division/NN
that/WDT
develops/VBZ
the/DT
computer-matching/JJ
programs/NNS
./.
The/DT
department/NN
has/VBZ
collected/VBN
over/RB
$/$
6.5/CD
million/CD
from/IN
brokers/NNS
so/RB
far/RB
and/CC
recommended/VBN
more/JJR
than/IN
30/CD
of/IN
them/PRP
for/IN
criminal/JJ
prosecution/NN
./.
In/IN
the/DT
early/JJ
stage/NN
of/IN
checking/NN
people/NNS
with/IN
incomes/NNS
exceeding/VBG
$/$
500,000/CD
who/WP
were/VBD
filing/VBG
nonresident/JJ
returns/NNS
,/,
it/PRP
squeezed/VBD
$/$
7.5/CD
million/CD
out/IN
of/IN
a/DT
man/NN
who/WP
was/VBD
posing/VBG
as/IN
a/DT
Florida/NNP
resident/NN
./.
``/``
We/PRP
think/VBP
we/PRP
can/MD
reclaim/VB
hundreds/NNS
of/IN
millions/NNS
of/IN
dollars/NNS
just/RB
through/IN
the/DT
nonresident/JJ
project/NN
,/,
''/''
Mr./NNP
Hicks/NNP
declares/VBZ
./.
Mr./NNP
Schmedel/NNP
is/VBZ
editor/NN
of/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
's/POS
Tax/NNP
Report/NNP
column/NN
./.
In/IN
finding/VBG
``/``
good/JJ
news/NN
''/''
in/IN
Berkeley/NNP
's/POS
new/JJ
freshman/NN
admissions/NNS
plan/NN
(/(
``/``
The/NNP
Privileged/NNP
Class/NNP
,/,
''/''
editorial/NN
,/,
Sept./NNP
20/CD
you/PRP
're/VBP
reading/VBG
the/DT
headline/NN
but/CC
not/RB
the/DT
story/NN
./.
The/DT
plan/NN
indeed/RB
raises/VBZ
from/IN
40/CD
%/NN
to/TO
50/CD
%/NN
the/DT
number/NN
of/IN
freshmen/NNS
applicants/NNS
admitted/VBN
strictly/RB
by/IN
academic/JJ
criteria/NNS
./.
But/CC
that/DT
does/VBZ
n't/RB
mean/VB
``/``
half/NN
of/IN
the/DT
students/NNS
attending/VBG
Berkeley/NNP
''/''
will/MD
be/VB
admitted/VBN
this/DT
way/NN
./.
The/DT
plan/NN
is/VBZ
talking/VBG
about/IN
applicants/NNS
admitted/VBN
,/,
not/RB
students/NNS
who/WP
enroll/VBP
./.
Since/IN
the/DT
``/``
yield/NN
''/''
from/IN
this/DT
top/JJ
slice/NN
of/IN
applicants/NNS
is/VBZ
relatively/RB
low/JJ
,/,
boosting/VBG
admits/NNS
from/IN
40/CD
%/NN
to/TO
50/CD
%/NN
will/MD
boost/VB
registrants/NNS
from/IN
about/RB
31/CD
%/NN
to/TO
38/CD
%/NN
of/IN
the/DT
class/NN
./.
In/IN
addition/NN
,/,
perhaps/RB
5/CD
%/NN
of/IN
registrants/NNS
will/MD
come/VB
from/IN
a/DT
new/JJ
category/NN
consisting/VBG
of/IN
applicants/NNS
whose/WP$
academic/JJ
credentials/NNS
``/``
narrowly/RB
missed/VBD
''/''
gaining/VBG
them/PRP
admission/NN
in/IN
the/DT
first/JJ
category/NN
./.
But/CC
against/IN
that/DT
combined/VBN
increase/NN
of/IN
12/CD
%/NN
in/IN
students/NNS
chosen/VBN
by/IN
academic/JJ
criteria/NNS
,/,
the/DT
plan/NN
eliminates/VBZ
a/DT
large/JJ
category/NN
in/IN
which/WDT
admissions/NNS
now/RB
are/VBP
based/VBN
on/IN
grades/NNS
,/,
test/NN
scores/NNS
and/CC
``/``
supplemental/JJ
points/NNS
''/''
for/IN
factors/NNS
such/JJ
as/IN
high-school/NN
curriculum/NN
,/,
English-language/JJ
proficiency/NN
and/CC
an/DT
essay/NN
./.
This/DT
category/NN
now/RB
accounts/VBZ
for/IN
about/RB
19/CD
%/NN
of/IN
admits/NNS
and/CC
22/CD
%/NN
of/IN
registrants/NNS
./.
The/DT
plan/NN
thus/RB
will/MD
decrease/VB
by/IN
22/CD
%/NN
,/,
for/IN
a/DT
net/JJ
loss/NN
of/IN
10/CD
%/NN
,/,
the/DT
number/NN
of/IN
students/NNS
admitted/VBN
primarily/RB
by/IN
academic/JJ
criteria/NNS
./.
Who/WP
will/MD
take/VB
over/RP
these/DT
places/NNS
?/.
The/DT
plan/NN
creates/VBZ
a/DT
new/JJ
category/NN
of/IN
students/NNS
from/IN
``/``
socioeconomically/RB
disadvantaged/JJ
backgrounds/NNS
,/,
''/''
a/DT
concept/NN
not/RB
yet/RB
defined/VBN
,/,
and/CC
gives/VBZ
them/PRP
about/RB
10/CD
%/NN
of/IN
the/DT
class/NN
./.
One/CD
of/IN
the/DT
plan/NN
's/POS
authors/NNS
has/VBZ
defended/VBN
the/DT
``/``
socioeconomic/JJ
disadvantage/NN
''/''
category/NN
as/IN
perhaps/RB
making/VBG
more/JJR
sense/NN
than/IN
the/DT
current/JJ
affirmative-action/NN
preferences/NNS
based/VBN
on/IN
race/NN
./.
Perhaps/RB
it/PRP
does/VBZ
./.
But/CC
the/DT
new/JJ
category/NN
does/VBZ
not/RB
replace/VB
or/CC
reduce/VB
Berkeley/NNP
's/POS
broad/JJ
racial/JJ
preferences/NNS
./.
Nor/CC
will/MD
students/NNS
from/IN
racial-minority/JJ
groups/NNS
who/WP
are/VBP
admitted/VBN
through/IN
the/DT
new/JJ
category/NN
be/VB
counted/VBN
against/IN
the/DT
affirmative-action/NN
``/``
target/NN
''/''
for/IN
their/PRP$
group/NN
./.
The/DT
plan/NN
thus/RB
places/VBZ
a/DT
large/JJ
new/JJ
affirmative-action/NN
program/NN
,/,
based/VBN
on/IN
``/``
socioeconomic/JJ
disadvantage/NN
,/,
''/''
on/IN
top/NN
of/IN
the/DT
existing/VBG
program/NN
based/VBN
on/IN
race/NN
./.
The/DT
role/NN
of/IN
academic/JJ
criteria/NNS
in/IN
choosing/VBG
Berkeley/NNP
's/POS
freshmen/NNS
can/MD
only/RB
decline/VB
as/IN
a/DT
result/NN
./.
Stephen/NNP
R./NNP
Barnett/NNP
Professor/NNP
of/IN
Law/NNP
University/NNP
of/IN
California/NNP
Berkeley/NNP
,/,
Calif/NNP
./.
FOR/IN
THOSE/DT
WHO/WP
DELIGHT/VBP
in/IN
the/DT
misfortune/NN
of/IN
others/NNS
,/,
read/VB
on/RB
./.
This/DT
is/VBZ
a/DT
story/NN
about/IN
suckers/NNS
./.
Most/JJS
of/IN
us/PRP
know/VBP
a/DT
sucker/NN
./.
Many/JJ
of/IN
us/PRP
are/VBP
suckers/NNS
./.
But/CC
what/WP
we/PRP
may/MD
not/RB
know/VB
is/VBZ
just/RB
what/WP
makes/VBZ
somebody/NN
a/DT
sucker/NN
./.
What/WP
makes/VBZ
people/NNS
blurt/VBP
out/RP
their/PRP$
credit-card/NN
numbers/NNS
to/TO
a/DT
caller/NN
they/PRP
've/VBP
never/RB
heard/VBN
of/IN
?/.
Do/VBP
they/PRP
really/RB
believe/VB
that/IN
the/DT
number/NN
is/VBZ
just/RB
for/IN
verification/NN
and/CC
is/VBZ
simply/RB
a/DT
formality/NN
on/IN
the/DT
road/NN
to/TO
being/VBG
a/DT
grand-prize/NN
winner/NN
?/.
What/WP
makes/VBZ
a/DT
person/NN
buy/VBP
an/DT
oil/NN
well/NN
from/IN
some/DT
stranger/NN
knocking/VBG
on/IN
the/DT
screen/NN
door/NN
?/.
Or/CC
an/DT
interest/NN
in/IN
a/DT
retirement/NN
community/NN
in/IN
Nevada/NNP
that/WDT
will/MD
knock/VB
your/PRP$
socks/NNS
off/IN
,/,
once/IN
it/PRP
is/VBZ
built/VBN
?/.
Because/IN
in/IN
the/DT
end/NN
,/,
these/DT
people/NNS
always/RB
wind/VBP
up/RP
asking/VBG
themselves/PRP
the/DT
same/JJ
question/NN
:/:
``/``
How/WRB
could/MD
I/PRP
be/VB
so/RB
stupid/JJ
?/.
''/''
There/EX
are/VBP
,/,
unfortunately/RB
,/,
plenty/JJ
of/IN
answers/NNS
to/TO
that/DT
question/NN
--/:
and/CC
scam/NN
artists/NNS
know/VBP
all/DT
of/IN
them/PRP
./.
``/``
These/DT
people/NNS
are/VBP
very/RB
skilled/JJ
at/IN
finding/VBG
out/RP
what/WP
makes/VBZ
a/DT
person/NN
tick/VB
,/,
''/''
says/VBZ
Kent/NNP
Neal/NNP
,/,
chief/NN
of/IN
the/DT
economic-crime/JJ
unit/NN
of/IN
the/DT
Broward/NNP
County/NNP
State/NNP
Attorney/NNP
's/POS
Office/NNP
in/IN
Fort/NNP
Lauderdale/NNP
,/,
Fla./NNP
,/,
a/DT
major/JJ
haven/NN
for/IN
boiler/NN
rooms/NNS
./.
``/``
Once/RB
they/PRP
size/VBP
them/PRP
up/RP
,/,
then/RB
they/PRP
know/VBP
what/WP
buttons/NNS
to/TO
push/VB
./.
''/''
John/NNP
Blodgett/NNP
agrees/VBZ
--/:
and/CC
he/PRP
ought/MD
to/TO
know/VB
./.
He/PRP
used/VBD
to/TO
be/VB
a/DT
boiler-room/NN
salesman/NN
,/,
peddling/VBG
investments/NNS
in/IN
oil/NN
and/CC
gas/NN
wells/NNS
and/CC
rare/JJ
coins/NNS
./.
``/``
There/EX
's/VBZ
a/DT
definite/JJ
psychology/NN
of/IN
the/DT
sale/NN
and/CC
different/JJ
personalities/NNS
you/PRP
pitch/VBP
different/JJ
ways/NNS
,/,
''/''
he/PRP
says/VBZ
./.
The/DT
most/RBS
obvious/JJ
pitch/NN
,/,
of/IN
course/NN
,/,
is/VBZ
the/DT
lure/NN
of/IN
big/JJ
returns/NNS
./.
``/``
We/PRP
're/VBP
all/DT
a/DT
little/RB
greedy/JJ
./.
Everyone/NN
is/VBZ
vulnerable/JJ
,/,
''/''
says/VBZ
Charles/NNP
Harper/NNP
,/,
associate/JJ
regional/JJ
administrator/NN
for/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
in/IN
Miami/NNP
./.
``/``
These/DT
guys/NNS
prey/VBP
on/IN
human/JJ
frailties/NNS
./.
''/''
While/IN
the/DT
promises/NNS
of/IN
big/JJ
profits/NNS
ought/MD
to/TO
set/VB
off/RP
warning/NN
bells/NNS
,/,
they/PRP
often/RB
do/VBP
n't/RB
,/,
in/IN
part/NN
because/IN
get-rich-quick/JJ
tales/NNS
have/VBP
become/VBN
embedded/VBN
in/IN
American/JJ
folklore/NN
./.
``/``
The/DT
overnight/JJ
success/NN
story/NN
is/VBZ
part/NN
of/IN
our/PRP$
culture/NN
,/,
and/CC
our/PRP$
society/NN
puts/VBZ
an/DT
emphasis/NN
on/IN
it/PRP
with/IN
lotteries/NNS
and/CC
Ed/NNP
McMahon/NNP
making/VBG
millionaires/NNS
out/IN
of/IN
people/NNS
,/,
''/''
says/VBZ
Michael/NNP
Cunningham/NNP
,/,
an/DT
associate/JJ
professor/NN
of/IN
psychology/NN
at/IN
the/DT
University/NNP
of/IN
Kentucky/NNP
in/IN
Louisville/NNP
./.
``/``
Other/JJ
people/NNS
are/VBP
making/VBG
it/PRP
overnight/RB
,/,
and/CC
the/DT
rest/NN
who/WP
toil/VBP
daily/RB
do/VBP
n't/RB
want/VB
to/TO
miss/VB
that/DT
opportunity/NN
when/WRB
it/PRP
seems/VBZ
to/TO
come/VB
along/RP
./.
''/''
Adds/VBZ
Spencer/NNP
Barasch/NNP
,/,
branch/NN
chief/NN
for/IN
enforcement/NN
at/IN
the/DT
SEC/NNP
in/IN
Fort/NNP
Worth/NNP
,/,
Texas/NNP
:/:
``/``
Why/WRB
do/VBP
people/NNS
play/VB
the/DT
lottery/NN
when/WRB
the/DT
odds/NNS
are/VBP
great/JJ
against/IN
them/PRP
?/.
People/NNS
are/VBP
shooting/VBG
for/IN
a/DT
dream/NN
./.
''/''
Clearly/RB
,/,
though/RB
,/,
scam/NN
artists/NNS
have/VBP
to/TO
be/VB
a/DT
bit/NN
more/RBR
subtle/JJ
than/IN
simply/RB
promising/VBG
millions/NNS
;/:
the/DT
psychology/NN
of/IN
suckers/NNS
is/VBZ
n't/RB
simply/RB
the/DT
psychology/NN
of/IN
the/DT
greedy/JJ
./.
There/EX
's/VBZ
also/RB
,/,
for/IN
instance/NN
,/,
the/DT
need/NN
to/TO
be/VB
part/NN
of/IN
the/DT
in-crowd/NN
./.
So/RB
one/CD
popular/JJ
ploy/NN
is/VBZ
to/TO
make/VB
a/DT
prospective/JJ
investor/NN
feel/VB
like/IN
an/DT
insider/NN
,/,
joining/VBG
an/DT
exclusive/JJ
group/NN
that/WDT
is/VBZ
about/IN
to/TO
make/VB
a/DT
killing/NN
./.
Between/IN
1978/CD
and/CC
1987/CD
,/,
for/IN
instance/NN
,/,
SH/NNP
Oil/NNP
in/IN
Winter/NNP
Haven/NNP
,/,
Fla./NNP
,/,
sold/VBN
interests/NNS
in/IN
oil/NN
wells/NNS
to/TO
a/DT
very/RB
select/JJ
group/NN
of/IN
local/JJ
residents/NNS
,/,
while/IN
turning/VBG
away/RB
numerous/JJ
other/JJ
eager/JJ
investors/NNS
./.
The/DT
owner/NN
of/IN
the/DT
company/NN
,/,
Stephen/NNP
Smith/NNP
,/,
who/WP
has/VBZ
since/RB
pleaded/VBN
guilty/JJ
to/TO
state/NN
and/CC
federal/JJ
fraud/NN
charges/NNS
,/,
confided/VBD
to/TO
investors/NNS
that/IN
he/PRP
had/VBD
a/DT
secret/JJ
agreement/NN
with/IN
Amoco/NNP
Oil/NNP
Co./NNP
and/CC
said/VBD
the/DT
location/NN
of/IN
his/PRP$
wells/NNS
was/VBD
confidential/JJ
,/,
according/VBG
to/TO
a/DT
civil/JJ
suit/NN
filed/VBN
in/IN
a/DT
Florida/NNP
state/NN
court/NN
by/IN
the/DT
Florida/NNP
comptroller/NN
's/POS
office/NN
./.
Neither/CC
the/DT
Amoco/NNP
agreement/NN
nor/CC
the/DT
wells/NNS
existed/VBD
,/,
the/DT
suit/NN
alleged/VBD
./.
Such/JJ
schemes/NNS
,/,
says/VBZ
Tony/NNP
Adamski/NNP
,/,
chief/NN
of/IN
the/DT
financial-crimes/NNS
unit/NN
of/IN
the/DT
Federal/NNP
Bureau/NNP
of/IN
Investigation/NNP
in/IN
Washington/NNP
,/,
D.C./NNP
,/,
appeal/VBP
to/TO
investors/NNS
'/POS
``/``
desire/NN
to/TO
believe/VB
this/DT
is/VBZ
really/RB
true/JJ
and/CC
that/IN
they/PRP
are/VBP
part/NN
of/IN
a/DT
chosen/JJ
group/NN
being/VBG
given/VBN
this/DT
opportunity/NN
./.
''/''
At/IN
times/NNS
,/,
salesmen/NNS
may/MD
embellish/VB
the/DT
inside/JJ
information/NN
with/IN
``/``
the/DT
notion/NN
that/IN
this/DT
is/VBZ
some/DT
slightly/RB
shady/JJ
,/,
slightly/RB
illegal/JJ
investment/NN
the/DT
person/NN
is/VBZ
being/VBG
included/VBN
in/IN
,/,
''/''
says/VBZ
Mr./NNP
Cunningham/NNP
./.
In/IN
appealing/VBG
to/TO
those/DT
with/IN
a/DT
bit/NN
of/IN
larceny/NN
in/IN
their/PRP$
hearts/NNS
,/,
the/DT
fraud/NN
artist/NN
can/MD
insist/VB
that/IN
a/DT
person/NN
keep/VB
an/DT
investment/NN
secret/NN
--/:
insulating/VBG
himself/PRP
from/IN
being/VBG
discovered/VBN
and/CC
keeping/VBG
his/PRP$
victim/NN
from/IN
consulting/VBG
with/IN
others/NNS
./.
It/PRP
also/RB
adds/VBZ
to/TO
the/DT
mystery/NN
of/IN
the/DT
venture/NN
./.
Mr./NNP
Blodgett/NNP
,/,
the/DT
boiler-room/NN
veteran/NN
,/,
believes/VBZ
that/IN
for/IN
many/JJ
investors/NNS
,/,
the/DT
get-rich-quick/JJ
scams/NNS
carry/VBP
a/DT
longed-for/JJ
element/NN
of/IN
excitement/NN
./.
``/``
Once/IN
people/NNS
got/VBD
into/IN
it/PRP
,/,
I/PRP
was/VBD
allowing/VBG
them/PRP
to/TO
live/VB
a/DT
dream/NN
,/,
''/''
he/PRP
says/VBZ
./.
He/PRP
phoned/VBD
them/PRP
with/IN
updates/NNS
on/IN
the/DT
investment/NN
,/,
such/JJ
as/IN
``/``
funny/JJ
things/NNS
that/WDT
happened/VBD
at/IN
the/DT
well/RB
that/DT
week/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
You/PRP
gave/VBD
them/PRP
some/DT
excitement/NN
that/IN
they/PRP
did/VBD
n't/RB
have/VB
in/IN
their/PRP$
lives/NNS
./.
''/''
(/(
Mr./NNP
Blodgett/NNP
,/,
who/WP
was/VBD
convicted/VBN
in/IN
Florida/NNP
state/NN
court/NN
of/IN
selling/NN
unregistered/JJ
securities/NNS
and/CC
in/IN
California/NNP
state/NN
court/NN
of/IN
unlawful/JJ
use/NN
of/IN
the/DT
telephone/NN
to/TO
defraud/VB
and/CC
deceive/VB
,/,
is/VBZ
now/RB
on/IN
probation/NN
./.
He/PRP
says/VBZ
he/PRP
has/VBZ
quit/VBN
the/DT
business/NN
and/CC
is/VBZ
back/RB
in/IN
school/NN
,/,
majoring/VBG
in/IN
psychology/NN
with/IN
aspirations/NNS
to/TO
go/VB
into/IN
industrial/JJ
psychology/NN
./.
For/IN
some/DT
investors/NNS
,/,
it/PRP
's/VBZ
the/DT
appearances/NNS
that/WDT
leave/VBP
them/PRP
deceived/VBN
./.
``/``
The/DT
trappings/NNS
of/IN
success/NN
go/VBP
a/DT
long/JJ
way/NN
--/:
wearing/VBG
the/DT
right/JJ
clothes/NNS
,/,
doing/VBG
the/DT
right/JJ
things/NNS
,/,
''/''
says/VBZ
Paul/NNP
Andreassen/NNP
,/,
an/DT
associate/JJ
professor/NN
of/IN
psychology/NN
at/IN
Harvard/NNP
./.
Conservative/JJ
appearances/NNS
make/VBP
people/NNS
think/VB
it/PRP
's/VBZ
a/DT
conservative/JJ
investment/NN
./.
``/``
People/NNS
honestly/RB
lose/VBP
money/NN
on/IN
risky/JJ
investments/NNS
that/IN
they/PRP
did/VBD
n't/RB
realize/VB
were/VBD
a/DT
crapshoot/NN
,/,
''/''
he/PRP
says/VBZ
./.
Paul/NNP
Wenz/NNP
,/,
a/DT
Phoenix/NNP
,/,
Ariz./NNP
,/,
attorney/NN
,/,
says/VBZ
a/DT
promise/NN
of/IN
unrealistic/JJ
returns/NNS
would/MD
have/VB
made/VBN
him/PRP
leery/JJ
./.
But/CC
Mr./NNP
Wenz/NNP
,/,
who/WP
says/VBZ
he/PRP
lost/VBD
$/$
43,000/CD
in/IN
one/CD
precious-metals/NNS
deal/NN
and/CC
$/$
39,000/CD
in/IN
another/DT
,/,
says/VBZ
a/DT
salesman/NN
``/``
used/VBD
a/DT
business-venture/JJ
approach/NN
''/''
with/IN
him/PRP
,/,
sending/VBG
investment/NN
literature/NN
,/,
a/DT
contract/NN
limiting/VBG
the/DT
firm/NN
's/POS
liability/NN
,/,
and/CC
an/DT
insurance/NN
policy/NN
./.
When/WRB
he/PRP
visited/VBD
the/DT
company/NN
's/POS
office/NN
,/,
he/PRP
says/VBZ
,/,
it/PRP
had/VBD
``/``
all/DT
the/DT
trappings/NNS
of/IN
legitimacy/NN
./.
''/''
Still/RB
others/NNS
are/VBP
stung/VBN
by/IN
a/DT
desire/NN
to/TO
do/VB
both/DT
well/RB
and/CC
good/RB
,/,
says/VBZ
Douglas/NNP
Watson/NNP
,/,
commanding/VBG
officer/NN
of/IN
the/DT
Los/NNP
Angeles/NNP
Police/NNP
Department/NNP
's/POS
bunko-forgery/NN
division/NN
./.
Born-again/JJ
Christians/NNS
are/VBP
the/DT
most/RBS
visible/JJ
targets/NNS
of/IN
unscrupulous/JJ
do-gooder/JJ
investment/NN
pitches/NNS
./.
But/CC
hardly/RB
the/DT
only/JJ
ones/NNS
:/:
The/DT
scams/NNS
promise/VBP
--/:
among/IN
other/JJ
things/NNS
--/:
to/TO
help/VB
save/VB
the/DT
environment/NN
,/,
feed/VB
starving/VBG
families/NNS
and/CC
prevent/VB
the/DT
disappearance/NN
of/IN
children/NNS
./.
Psychologists/NNS
say/VB
isolated/VBN
people/NNS
who/WP
do/VBP
n't/RB
discuss/VB
their/PRP$
investments/NNS
with/IN
others/NNS
are/VBP
particularly/RB
at/IN
risk/NN
for/IN
fraud/NN
./.
Scam/NN
artists/NNS
seek/VBP
out/RP
such/JJ
people/NNS
--/:
or/CC
try/VB
to/TO
make/VB
sure/JJ
that/IN
their/PRP$
victims/NNS
isolate/VBP
themselves/PRP
./.
For/IN
instance/NN
,/,
salesmen/NNS
may/MD
counter/VB
a/DT
man/NN
's/POS
objection/NN
that/IN
he/PRP
wants/VBZ
to/TO
discuss/VB
an/DT
investment/NN
with/IN
his/PRP$
wife/NN
by/IN
asking/VBG
,/,
``/``
Who/WP
wears/VBZ
the/DT
pants/NNS
in/IN
your/PRP$
family/NN
?/.
''/''
Or/CC
an/DT
investor/NN
who/WP
wants/VBZ
his/PRP$
accountant/NN
's/POS
advice/NN
may/MD
be/VB
told/VBN
,/,
``/``
You/PRP
seem/VBP
like/IN
a/DT
guy/NN
who/WP
can/MD
make/VB
up/RP
his/PRP$
own/JJ
mind/NN
./.
''/''
Often/RB
con/NN
artists/NNS
will/MD
try/VB
to/TO
disarm/VB
their/PRP$
victims/NNS
by/IN
emphasizing/VBG
similarities/NNS
between/IN
them/PRP
./.
William/NNP
Lynes/NNP
,/,
a/DT
retired/JJ
engineer/NN
from/IN
Lockheed/NNP
Corp./NNP
,/,
says/VBZ
he/PRP
and/CC
his/PRP$
wife/NN
,/,
Lily/NNP
,/,
warmed/VBD
to/TO
the/DT
investment/NN
pitches/NNS
of/IN
a/DT
penny-stock/NN
peddler/NN
from/IN
Stuart-James/NNP
Co./NNP
in/IN
Atlanta/NNP
after/RB
the/DT
broker/NN
told/VBD
them/PRP
he/PRP
,/,
too/RB
,/,
had/VBD
once/RB
worked/VBN
with/IN
Lockheed/NNP
./.
The/VB
Lyneses/NNP
,/,
of/IN
Powder/NNP
Springs/NNP
,/,
Ga./NNP
,/,
have/VBP
filed/VBN
suit/NN
in/IN
Georgia/NNP
state/NN
court/NN
against/IN
Stuart/NNP
James/NNP
,/,
alleging/VBG
fraud/NN
./.
They/PRP
are/VBP
awaiting/VBG
an/DT
arbitration/NN
proceeding/NN
./.
They/PRP
say/VBP
the/DT
broker/NN
took/VBD
them/PRP
out/RB
for/IN
lunch/NN
frequently/RB
./.
He/PRP
urged/VBD
them/PRP
to/TO
refer/VB
their/PRP$
friends/NNS
,/,
who/WP
also/RB
lost/VBD
money/NN
./.
Donald/NNP
Trinen/NNP
,/,
an/DT
attorney/NN
for/IN
the/DT
penny-brokerage/JJ
firm/NN
,/,
denies/VBZ
the/DT
fraud/NN
allegations/NNS
and/CC
says/VBZ
the/DT
Lyneses/NNP
were/VBD
fully/RB
apprised/VBN
that/IN
they/PRP
were/VBD
pursuing/VBG
a/DT
high-risk/JJ
investment/NN
./.
``/``
It/PRP
's/VBZ
not/RB
uncommon/JJ
for/IN
these/DT
guys/NNS
to/TO
send/VB
pictures/NNS
of/IN
themselves/PRP
or/CC
their/PRP$
families/NNS
to/TO
ingratiate/VB
themselves/PRP
to/TO
their/PRP$
clients/NNS
,/,
''/''
says/VBZ
Terree/NNP
Bowers/NNP
,/,
chief/NN
of/IN
the/DT
major-frauds/JJ
section/NN
of/IN
the/DT
U.S./NNP
attorney/NN
's/POS
office/NN
in/IN
Los/NNP
Angeles/NNP
./.
``/``
We/PRP
've/VBP
seen/VBN
cases/NNS
where/WRB
salesmen/NNS
will/MD
affect/VB
the/DT
accent/NN
of/IN
the/DT
region/NN
of/IN
the/DT
country/NN
they/PRP
are/VBP
calling/VBG
./.
Anything/NN
to/TO
make/VB
a/DT
sale/NN
./.
''/''
Experts/NNS
say/VBP
that/IN
whatever/WDT
a/DT
person/NN
's/POS
particular/JJ
weak/JJ
point/NN
,/,
timing/NN
is/VBZ
crucial/JJ
./.
People/NNS
may/MD
be/VB
particularly/RB
vulnerable/JJ
to/TO
flim-flam/NN
pitches/NNS
when/WRB
they/PRP
are/VBP
in/IN
the/DT
midst/NN
of/IN
a/DT
major/JJ
upheaval/NN
in/IN
their/PRP$
lives/NNS
./.
``/``
Sometimes/RB
when/WRB
people/NNS
are/VBP
making/VBG
big/JJ
changes/NNS
,/,
retiring/VBG
from/IN
their/PRP$
jobs/NNS
,/,
moving/VBG
to/TO
a/DT
new/JJ
area/NN
,/,
they/PRP
lose/VBP
their/PRP$
bearings/NNS
,/,
''/''
says/VBZ
Maury/NNP
Elvekrog/NNP
,/,
a/DT
licensed/JJ
psychologist/NN
who/WP
is/VBZ
now/RB
an/DT
investment/NN
adviser/NN
and/CC
principal/NN
in/IN
Seger-Elvekrog/NNP
Inc./NNP
,/,
a/DT
Birmingham/NNP
,/,
Mich./NNP
,/,
investment-counseling/JJ
firm/NN
./.
``/``
They/PRP
may/MD
be/VB
susceptible/JJ
to/TO
some/DT
song/NN
and/CC
dance/NN
if/IN
it/PRP
hits/VBZ
them/PRP
at/IN
the/DT
right/JJ
time/NN
./.
''/''
They/PRP
are/VBP
obviously/RB
also/RB
more/RBR
susceptible/JJ
when/WRB
they/PRP
need/VBP
money/NN
-/:
retirees/NNS
,/,
for/IN
instance/NN
,/,
trying/VBG
to/TO
bolster/VB
their/PRP$
fixed/JJ
income/NN
or/CC
parents/NNS
fretting/VBG
over/IN
how/WRB
to/TO
pay/VB
for/IN
a/DT
child/NN
's/POS
college/NN
expenses/NNS
./.
``/``
These/DT
people/NNS
are/VBP
n't/RB
necessarily/RB
stupid/JJ
or/CC
naive/JJ
./.
Almost/RB
all/DT
of/IN
us/PRP
in/IN
comparable/JJ
circumstances/NNS
might/MD
be/VB
victimized/VBN
in/IN
some/DT
way/NN
,/,
''/''
says/VBZ
Jerald/NNP
Jellison/NNP
,/,
a/DT
psychology/NN
professor/NN
at/IN
the/DT
University/NNP
of/IN
Southern/NNP
California/NNP
in/IN
Los/NNP
Angeles/NNP
./.
Nick/NNP
Cortese/NNP
thinks/VBZ
that/IN
's/VBZ
what/WP
happened/VBD
to/TO
him/PRP
./.
Mr./NNP
Cortese/NNP
,/,
a/DT
33-year-old/JJ
Delta/NNP
Air/NNP
Lines/NNP
engineer/NN
,/,
invested/VBD
some/DT
$/$
2,000/CD
in/IN
penny/NN
stocks/NNS
through/IN
a/DT
broker/NN
who/WP
promised/VBD
quick/JJ
returns/NNS
./.
``/``
We/PRP
were/VBD
saving/VBG
up/RP
to/TO
buy/VB
a/DT
house/NN
,/,
and/CC
my/PRP$
wife/NN
was/VBD
pregnant/JJ
,/,
''/''
says/VBZ
Mr./NNP
Cortese/NNP
./.
``/``
It/PRP
was/VBD
just/RB
before/RB
the/DT
Christmas/NNP
holidays/NNS
,/,
and/CC
I/PRP
figured/VBD
we/PRP
could/MD
use/VB
some/DT
extra/JJ
cash/NN
./.
''/''
The/DT
investment/NN
is/VBZ
worth/JJ
about/RB
$/$
130/CD
today/NN
./.
``/``
Maybe/RB
it/PRP
was/VBD
just/RB
a/DT
vulnerable/JJ
time/NN
,/,
''/''
says/VBZ
Mr./NNP
Cortese/NNP
./.
``/``
Maybe/RB
the/DT
next/JJ
day/NN
or/CC
even/RB
an/DT
hour/NN
later/RB
,/,
I/PRP
would/MD
n't/RB
have/VB
done/VBN
it/PRP
./.
''/''
Ms./NNP
Brannigan/NNP
is/VBZ
a/DT
staff/NN
reporter/NN
in/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
's/POS
Atlanta/NNP
bureau/NN
./.
Prices/NNS
for/IN
seats/NNS
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
are/VBP
recovering/VBG
a/DT
bit/NN
after/RB
hitting/VBG
a/DT
four-year/JJ
low/JJ
earlier/RBR
this/DT
month/NN
./.
Two/CD
seats/NNS
on/IN
the/DT
Big/NNP
Board/NNP
were/VBD
sold/VBN
yesterday/NN
for/IN
$/$
455,000/CD
,/,
and/CC
then/RB
$/$
500,000/CD
./.
The/DT
previous/JJ
sale/NN
was/VBD
$/$
436,000/CD
on/IN
Oct./NNP
17/CD
;/:
the/DT
last/JJ
time/NN
prices/NNS
were/VBD
that/RB
low/JJ
was/VBD
November/NNP
1985/CD
,/,
when/WRB
a/DT
seat/NN
sold/VBD
for/IN
$/$
425,000/CD
./.
Prices/NNS
peaked/VBD
at/IN
$/$
1,150,000/CD
in/IN
September/NNP
1987/CD
./.
Seats/NNS
are/VBP
currently/RB
quoted/VBN
at/IN
$/$
430,000/CD
bid/VBN
and/CC
$/$
525,000/CD
asked/VBN
./.
FOX/NN
HUNTING/NN
HAS/VBZ
been/VBN
defined/VBN
as/IN
the/DT
unspeakable/JJ
in/IN
pursuit/NN
of/IN
the/DT
inedible/JJ
,/,
but/CC
at/IN
least/JJS
it/PRP
's/VBZ
exercise/NN
./.
At/IN
least/JJS
it/PRP
has/VBZ
a/DT
little/JJ
dash/NN
./.
Most/JJS
of/IN
us/PRP
have/VBP
to/TO
spend/VB
our/PRP$
time/NN
on/IN
pursuits/NNS
that/WDT
afford/VBP
neither/DT
,/,
drab/JJ
duties/NNS
rather/RB
than/IN
pleasures/NNS
./.
Like/IN
trying/VBG
to/TO
buy/VB
life/NN
insurance/NN
,/,
for/IN
instance/NN
,/,
an/DT
endeavor/NN
notably/RB
lacking/VBG
in/IN
dash/NN
./.
Call/VB
it/PRP
the/DT
uninformed/JJ
trudging/VBG
after/IN
the/DT
incomprehensible/NN
./.
But/CC
sooner/RBR
or/CC
later/RBR
,/,
most/JJS
of/IN
us/PRP
have/VBP
to/TO
think/VB
about/IN
life/NN
insurance/NN
,/,
just/RB
as/IN
we/PRP
often/RB
have/VBP
to/TO
think/VB
about/IN
having/VBG
root-canal/NN
work/NN
./.
And/CC
my/PRP$
time/NN
has/VBZ
come/VBN
./.
I/PRP
'm/VBP
33/CD
,/,
married/JJ
,/,
no/DT
children/NNS
,/,
and/CC
employed/VBN
in/IN
writing/VBG
stories/NNS
like/IN
this/DT
one/CD
./.
In/IN
times/NNS
past/NN
,/,
life-insurance/NN
salesmen/NNS
targeted/VBD
heads/NNS
of/IN
household/NN
,/,
meaning/VBG
men/NNS
,/,
but/CC
ours/JJ
is/VBZ
a/DT
two-income/JJ
family/NN
and/CC
accustomed/VBN
to/TO
it/PRP
./.
So/RB
if/IN
anything/NN
happened/VBD
to/TO
me/PRP
,/,
I/PRP
'd/MD
want/VBP
to/TO
leave/VB
behind/RB
enough/JJ
so/RB
that/IN
my/PRP$
33-year-old/JJ
husband/NN
would/MD
be/VB
able/JJ
to/TO
pay/VB
off/RP
the/DT
mortgage/NN
and/CC
some/DT
other/JJ
debts/NNS
I/PRP
admit/VBP
,/,
enough/JJ
to/TO
put/VB
any/DT
potential/JJ
second/JJ
wife/NN
in/IN
the/DT
lap/NN
of/IN
luxury/NN
Figuring/VBG
that/IN
maybe/RB
$/$
100,000/CD
to/TO
$/$
150,000/CD
would/MD
do/VB
but/CC
having/VBG
no/DT
idea/NN
of/IN
what/WP
kind/NN
of/IN
policy/NN
I/PRP
wanted/VBD
,/,
I/PRP
looked/VBD
at/IN
the/DT
myriad/JJ
products/NNS
of/IN
a/DT
dozen/NN
companies/NNS
--/:
and/CC
plunged/VBN
into/IN
a/DT
jungle/NN
of/IN
gibberish/NN
./.
Over/IN
the/DT
past/JJ
decade/NN
or/CC
two/CD
,/,
while/IN
I/PRP
was/VBD
thinking/VBG
about/IN
fox/NN
hunting/NN
,/,
the/DT
insurance/NN
industry/NN
has/VBZ
spawned/VBN
an/DT
incredible/JJ
number/NN
of/IN
products/NNS
,/,
variations/NNS
on/IN
products/NNS
,/,
and/CC
variations/NNS
on/IN
the/DT
variations/NNS
./.
Besides/IN
term/NN
life/NN
and/CC
whole/JJ
life/NN
the/DT
old/JJ
standbys/NNS
we/PRP
now/RB
have/VBP
universal/JJ
life/NN
,/,
universal/JJ
variable/JJ
life/NN
,/,
flexible/JJ
adjustable/JJ
universal/JJ
life/NN
,/,
policies/NNS
with/IN
persistency/NN
bonuses/NNS
,/,
policies/NNS
festooned/VBN
with/IN
exotic/JJ
riders/NNS
,/,
living/NN
benefit/NN
policies/NNS
,/,
and/CC
on/RB
and/CC
on/RB
./.
What/WP
to/TO
do/VB
?/.
First/RB
,/,
generalize/VB
./.
Shorn/VBN
of/IN
all/DT
their/PRP$
riders/NNS
,/,
special/JJ
provisions/NNS
,/,
and/CC
other/JJ
bells/NNS
and/CC
whistles/NNS
,/,
insurance/NN
policies/NNS
can/MD
still/RB
be/VB
grouped/VBN
under/IN
two/CD
broad/JJ
categories/NNS
:/:
so-called/JJ
pure/JJ
insurance/NN
,/,
which/WDT
amasses/VBZ
no/DT
cash/NN
value/NN
in/IN
the/DT
policy/NN
and/CC
pays/VBZ
off/RP
only/RB
upon/IN
death/NN
,/,
and/CC
permanent/JJ
insurance/NN
,/,
which/WDT
provides/VBZ
not/RB
only/RB
a/DT
death/NN
benefit/NN
but/CC
also/RB
a/DT
cash/NN
value/NN
in/IN
the/DT
policy/NN
that/WDT
can/MD
be/VB
used/VBN
in/IN
various/JJ
ways/NNS
while/IN
the/DT
insured/VBN
is/VBZ
still/RB
alive/JJ
./.
If/IN
all/DT
you/PRP
want/VBP
is/VBZ
death-benefit/JJ
coverage/NN
,/,
pure/JJ
insurance/NN
--/:
a/DT
term/NN
policy/NN
--/:
gives/VBZ
you/PRP
maximum/NN
bang/NN
for/IN
your/PRP$
buck/NN
,/,
within/IN
limits/NNS
./.
It/PRP
's/VBZ
much/RB
cheaper/JJR
than/IN
permanent/JJ
insurance/NN
bought/VBN
at/IN
the/DT
same/JJ
age/NN
./.
But/CC
``/``
term/NN
''/''
means/VBZ
just/RB
that/DT
;/:
the/DT
policy/NN
is/VBZ
written/VBN
for/IN
a/DT
specific/JJ
time/NN
period/NN
only/RB
and/CC
must/MD
be/VB
renewed/VBN
when/WRB
it/PRP
expires/VBZ
./.
It/PRP
may/MD
also/RB
stipulate/VB
that/IN
the/DT
insured/NN
must/MD
pass/VB
another/DT
medical/JJ
exam/NN
before/IN
renewal/NN
;/:
if/IN
you/PRP
flunk/VBP
--/:
which/WDT
means/VBZ
you/PRP
need/VBP
insurance/NN
more/RBR
than/IN
ever/RB
--/:
you/PRP
may/MD
not/RB
be/VB
able/JJ
to/TO
buy/VB
it/PRP
./.
Even/RB
if/IN
you/PRP
're/VBP
healthy/JJ
and/CC
can/MD
renew/VB
,/,
your/PRP$
premium/NN
will/MD
go/VB
up/RB
sharply/RB
because/IN
you/PRP
're/VBP
that/DT
much/RB
older/JJR
./.
So/IN
term/NN
insurance/NN
may/MD
not/RB
be/VB
as/RB
cheap/JJ
as/IN
it/PRP
looks/VBZ
./.
There/EX
are/VBP
all/DT
sorts/NNS
of/IN
variations/NNS
on/IN
term/NN
insurance/NN
:/:
policies/NNS
structured/VBN
to/TO
pay/VB
off/RP
your/PRP$
mortgage/NN
debt/NN
,/,
term/NN
riders/NNS
tacked/VBD
on/IN
to/TO
permanent/JJ
insurance/NN
,/,
and/CC
many/JJ
others/NNS
./.
One/CD
variation/NN
that/WDT
appealed/VBD
to/TO
me/PRP
at/IN
first/JJ
was/VBD
the/DT
``/``
Money/NNP
Smart/NNP
Term/NNP
Life/NNP
''/''
policy/NN
offered/VBN
by/IN
Amex/NNP
Life/NNP
Insurance/NNP
Co./NNP
,/,
the/DT
American/NNP
Express/NNP
unit/NN
,/,
to/TO
the/DT
parent/NN
company/NN
's/POS
credit-card/NN
holders/NNS
./.
Upon/IN
examination/NN
,/,
however/RB
,/,
I/PRP
wondered/VBD
whether/IN
the/DT
plan/NN
made/VBD
a/DT
lot/NN
of/IN
sense/NN
./.
Amex/NNP
said/VBD
it/PRP
would/MD
charge/VB
me/PRP
$/$
576/CD
a/DT
year/NN
for/IN
$/$
100,000/CD
of/IN
coverage/NN
--/:
and/CC
would/MD
pay/VB
me/PRP
back/RB
all/DT
the/DT
premiums/NNS
I/PRP
put/VBD
in/RP
if/IN
I/PRP
canceled/VBD
the/DT
policy/NN
after/IN
10/CD
years/NNS
./.
Sounds/VBZ
great/JJ
--/:
or/CC
does/VBZ
it/PRP
?/.
First/RB
,/,
if/IN
I/PRP
canceled/VBD
,/,
I/PRP
'd/MD
have/VB
no/DT
more/JJR
insurance/NN
,/,
a/DT
not/RB
insignificant/JJ
consideration/NN
./.
Second/JJ
,/,
the/DT
$/$
5,760/CD
I/PRP
'd/MD
get/VB
back/RB
would/MD
be/VB
much/RB
diminished/VBN
in/IN
purchasing/NN
power/NN
by/IN
10/CD
years/NNS
of/IN
inflation/NN
;/:
Amex/NNP
,/,
not/RB
I/PRP
,/,
would/MD
get/VB
the/DT
benefit/NN
of/IN
the/DT
investment/NN
income/NN
on/IN
my/PRP$
money/NN
,/,
income/NN
that/WDT
would/MD
have/VB
exceeded/VBN
the/DT
inflation/NN
rate/NN
and/CC
thus/RB
given/VBN
the/DT
company/NN
a/DT
real/JJ
profit/NN
./.
Third/JJ
and/CC
most/RBS
important/JJ
,/,
Amex/NNP
would/MD
charge/VB
me/PRP
a/DT
far/RB
higher/JJR
premium/NN
than/IN
other/JJ
reputable/JJ
companies/NNS
would/MD
on/IN
a/DT
straight/JJ
term/NN
policy/NN
for/IN
the/DT
same/JJ
amount/NN
;/:
I/PRP
'd/MD
be/VB
paying/VBG
so/RB
heavily/RB
just/RB
to/TO
have/VB
the/DT
option/NN
of/IN
getting/VBG
my/PRP$
premiums/NNS
back/RB
that/IN
I/PRP
'd/MD
almost/RB
have/VB
to/TO
cancel/VB
to/TO
make/VB
the/DT
whole/JJ
thing/NN
worthwhile/JJ
./.
That/DT
would/MD
be/VB
all/RB
right/JJ
with/IN
Amex/NNP
,/,
which/WDT
could/MD
then/RB
lock/VB
in/IN
its/PRP$
investment/NN
profit/NN
,/,
but/CC
it/PRP
does/VBZ
n't/RB
add/VB
up/RP
to/TO
a/DT
``/``
smart/JJ
money/NN
''/''
move/NN
for/IN
me/PRP
./.
Which/WDT
goes/VBZ
to/TO
show/VB
that/IN
the/DT
First/NNP
Law/NNP
applies/VBZ
in/IN
insurance/NN
as/IN
in/IN
anything/NN
else/RB
:/:
There/EX
is/VBZ
no/DT
free/JJ
lunch/NN
,/,
there/EX
is/VBZ
only/RB
marketing/NN
./.
And/CC
the/DT
Second/NNP
Law/NNP
,/,
unique/JJ
to/TO
insurance/NN
?/.
If/IN
I/PRP
die/VBP
early/RB
,/,
I/PRP
win/VBP
--/:
a/DT
hollow/JJ
victory/NN
,/,
since/IN
I/PRP
ca/MD
n't/RB
enjoy/VB
it/PRP
--/:
and/CC
if/IN
I/PRP
live/VBP
long/RB
,/,
the/DT
insurer/NN
wins/VBZ
./.
Always/RB
./.
This/DT
is/VBZ
worth/JJ
remembering/VBG
when/WRB
insurers/NNS
and/CC
their/PRP$
salesmen/NNS
try/VBP
to/TO
sell/VB
you/PRP
permanent/JJ
insurance/NN
,/,
the/DT
kind/NN
that/WDT
amasses/VBZ
cash/NN
value/NN
./.
The/DT
word/NN
``/``
death/NN
''/''
can/MD
not/RB
be/VB
escaped/VBN
entirely/RB
by/IN
the/DT
industry/NN
,/,
but/CC
salesmen/NNS
dodge/VBP
it/PRP
wherever/WRB
possible/JJ
or/CC
cloak/VBP
it/PRP
in/IN
euphemisms/NNS
,/,
preferring/VBG
to/TO
talk/VB
about/IN
``/``
savings/NNS
''/''
and/CC
``/``
investment/NN
''/''
instead/RB
./.
The/DT
implication/NN
is/VBZ
that/DT
your/PRP$
permanent-insurance/JJ
policy/NN
is/VBZ
really/RB
some/DT
kind/NN
of/IN
CD/NNP
or/CC
mutual-fund/JJ
account/NN
with/IN
an/DT
added/VBN
feature/NN
./.
That/DT
is/VBZ
gilding/NN
the/DT
lily/NN
./.
The/DT
fact/NN
is/VBZ
that/IN
as/IN
a/DT
savings/NNS
or/CC
investment/NN
vehicle/NN
,/,
insurance/NN
generally/RB
runs/VBZ
a/DT
poor/JJ
second/NN
to/TO
any/DT
direct/JJ
investment/NN
you/PRP
might/MD
make/VB
in/IN
the/DT
same/JJ
things/NNS
the/DT
insurance/NN
company/NN
is/VBZ
putting/VBG
your/PRP$
money/NN
into/IN
./.
That/DT
's/VBZ
because/IN
you/PRP
have/VBP
to/TO
pay/VB
for/IN
the/DT
insurance/NN
portion/NN
of/IN
the/DT
policy/NN
and/CC
the/DT
effort/NN
required/VBN
to/TO
sell/VB
and/CC
service/VB
the/DT
whole/JJ
package/NN
./.
Again/RB
,/,
no/DT
free/JJ
lunch/NN
./.
This/DT
is/VBZ
reflected/VBN
in/IN
a/DT
built-in/JJ
mortality/NN
cost/NN
--/:
in/IN
effect/NN
,/,
your/PRP$
share/NN
of/IN
the/DT
company/NN
's/POS
estimated/VBN
liability/NN
in/IN
paying/VBG
off/RP
beneficiaries/NNS
of/IN
people/NNS
who/WP
had/VBD
the/DT
effrontery/NN
to/TO
die/VB
while/IN
under/IN
its/PRP$
protection/NN
./.
And/CC
in/IN
most/JJS
cases/NNS
,/,
a/DT
huge/JJ
hunk/NN
of/IN
your/PRP$
premium/NN
in/IN
the/DT
initial/JJ
year/NN
or/CC
two/CD
of/IN
the/DT
the/DT
policy/NN
is/VBZ
,/,
in/IN
effect/NN
,/,
paying/VBG
the/DT
salesman/NN
's/POS
commission/NN
as/RB
well/RB
;/:
investment/NN
returns/NNS
on/IN
most/JJS
policies/NNS
are/VBP
actually/RB
negative/JJ
for/IN
several/JJ
years/NNS
,/,
largely/RB
because/IN
of/IN
this/DT
./.
So/RB
view/VB
permanent/JJ
insurance/NN
for/IN
what/WP
it/PRP
is/VBZ
--/:
a/DT
compromise/NN
between/IN
pure/JJ
insurance/NN
and/CC
direct/JJ
investment/NN
./.
The/DT
simplest/JJS
,/,
most/RBS
traditional/JJ
form/NN
of/IN
permanent/JJ
insurance/NN
is/VBZ
the/DT
straight/JJ
whole/JJ
life/NN
policy/NN
./.
You/PRP
pay/VBP
a/DT
set/VBN
premium/NN
for/IN
a/DT
set/VBN
amount/NN
of/IN
coverage/NN
,/,
the/DT
company/NN
invests/VBZ
that/DT
premium/NN
in/IN
a/DT
portfolio/NN
of/IN
its/PRP$
choosing/NN
,/,
and/CC
your/PRP$
cash/NN
value/NN
and/CC
dividends/NNS
grow/VBP
over/IN
the/DT
years/NNS
./.
One/CD
newer/JJR
wrinkle/NN
,/,
so/RB
called/VBN
single-premium/JJ
life/NN
you/PRP
pay/VBP
for/IN
the/DT
whole/JJ
policy/NN
at/IN
once/RB
)/)
,/,
has/VBZ
been/VBN
immensely/RB
popular/JJ
in/IN
recent/JJ
years/NNS
for/IN
tax/NN
reasons/NNS
;/:
the/DT
insured/VBN
could/MD
extract/VB
cash/NN
value/NN
in/IN
the/DT
form/NN
of/IN
policy/NN
``/``
loans/NNS
,/,
''/''
and/CC
none/NN
of/IN
the/DT
proceeds/NNS
were/VBD
taxable/JJ
even/RB
though/IN
they/PRP
included/VBD
gains/NNS
on/IN
investment/NN
./.
Congress/NNP
closed/VBD
this/DT
loophole/NN
last/JJ
year/NN
,/,
or/CC
thought/VBD
it/PRP
did/VBD
./.
However/RB
,/,
Monarch/NNP
Capital/NNP
Corp./NNP
of/IN
Springfield/NNP
,/,
Mass./NNP
,/,
has/VBZ
developed/VBN
a/DT
``/``
combination/NN
plan/NN
''/''
of/IN
annuity/NN
and/CC
insurance/NN
coverage/NN
that/IN
it/PRP
says/VBZ
does/VBZ
not/RB
violate/VB
the/DT
new/JJ
regulations/NNS
and/CC
that/DT
allows/VBZ
policy/NN
loans/NNS
without/IN
tax/NN
consequences/NNS
./.
But/CC
the/DT
percentage/NN
of/IN
your/PRP$
cash/NN
reserve/NN
that/IN
you/PRP
can/MD
borrow/VB
tax-free/JJ
is/VBZ
very/RB
small/JJ
./.
I/PRP
'm/VBP
not/RB
prepared/VBN
in/IN
any/DT
case/NN
to/TO
put/VB
that/DT
much/JJ
money/NN
into/IN
a/DT
policy/NN
immediately/RB
,/,
so/IN
I/PRP
look/VBP
into/IN
the/DT
broad/JJ
category/NN
called/VBD
universal/JJ
life/NN
./.
Hugely/RB
popular/JJ
,/,
it/PRP
is/VBZ
far/RB
more/RBR
flexible/JJ
than/IN
straight/JJ
whole/JJ
life/NN
./.
I/PRP
can/MD
adjust/VB
the/DT
amount/NN
of/IN
insurance/NN
I/PRP
want/VBP
against/IN
the/DT
amount/NN
going/VBG
into/IN
investment/NN
;/:
I/PRP
can/MD
pay/VB
more/JJR
or/CC
less/JJR
than/IN
the/DT
so-called/JJ
target/NN
premium/NN
in/IN
a/DT
given/VBN
year/NN
;/:
and/CC
I/PRP
can/MD
even/RB
skip/VB
payments/NNS
if/IN
my/PRP$
cash/NN
reserves/NNS
are/VBP
enough/JJ
to/TO
cover/VB
the/DT
insurance/NN
portion/NN
of/IN
the/DT
policy/NN
./.
In/IN
looking/VBG
at/IN
these/DT
and/CC
other/JJ
policies/NNS
,/,
I/PRP
learn/VBP
to/TO
ask/VB
pointed/JJ
questions/NNS
about/IN
some/DT
of/IN
the/DT
assumptions/NNS
built/VBN
into/IN
``/``
policy/NN
illustrations/NNS
''/''
--/:
the/DT
rows/NNS
of/IN
numbers/NNS
that/WDT
show/VBP
me/PRP
the/DT
buildup/NN
of/IN
my/PRP$
cash/NN
values/NNS
over/IN
the/DT
years/NNS
./.
They/PRP
commonly/RB
give/VB
two/CD
scenarios/NNS
:/:
One/CD
is/VBZ
based/VBN
on/IN
interest/NN
rates/NNS
that/IN
the/DT
company/NN
guarantees/VBZ
(/(
usually/RB
4/CD
%/NN
to/TO
4.5/CD
%/NN
the/DT
other/JJ
on/IN
the/DT
rate/NN
it/PRP
is/VBZ
currently/RB
getting/VBG
on/IN
investment/NN
,/,
often/RB
8.5/CD
%/NN
or/CC
more/JJR
./.
Projecting/VBG
the/DT
latter/JJ
over/IN
several/JJ
decades/NNS
,/,
I/PRP
find/VBP
my/PRP$
cash/NN
buildup/NN
is/VBZ
impressive/JJ
--/:
but/CC
can/MD
any/DT
high/JJ
interest/NN
rate/NN
prevail/VB
for/IN
that/DT
long/RB
?/.
Not/RB
likely/RB
,/,
I/PRP
think/VBP
./.
Also/RB
,/,
some/DT
policy/NN
illustrations/NNS
assume/VBP
that/IN
mortality/NN
costs/NNS
will/MD
decline/VB
or/CC
that/IN
I/PRP
will/MD
get/VB
some/DT
sort/NN
of/IN
dividend/NN
bonus/NN
after/IN
the/DT
10th/JJ
year/NN
./.
These/DT
are/VBP
not/RB
certain/JJ
,/,
either/RB
./.
Companies/NNS
``/``
are/VBP
n't/RB
comfortable/JJ
playing/VBG
these/DT
games/NNS
,/,
but/CC
they/PRP
realize/VBP
they/PRP
're/VBP
under/IN
pressure/NN
to/TO
make/VB
their/PRP$
policies/NNS
look/VB
good/JJ
,/,
''/''
says/VBZ
Timothy/NNP
Pfiefer/NNP
,/,
an/DT
actuarial/JJ
consultant/NN
at/IN
Tillinghast/NNP
,/,
a/DT
unit/NN
of/IN
Towers/NNP
Perrin/NNP
Co./NNP
,/,
the/DT
big/JJ
New/NNP
York/NNP
consulting/VBG
firm/NN
./.
Another/DT
factor/NN
to/TO
consider/VB
:/:
Some/DT
of/IN
the/DT
companies/NNS
currently/RB
earning/VBG
very/RB
high/JJ
yields/NNS
are/VBP
doing/VBG
so/RB
through/IN
substantial/JJ
investment/NN
in/IN
junk/NN
bonds/NNS
,/,
and/CC
you/PRP
know/VBP
how/WRB
nervous/JJ
the/DT
market/NN
has/VBZ
been/VBN
about/IN
those/DT
lately/RB
./.
There/EX
are/VBP
seemingly/RB
endless/JJ
twists/NNS
to/TO
universal/JJ
life/NN
,/,
and/CC
it/PRP
pays/VBZ
to/TO
ask/VB
questions/NNS
about/IN
all/DT
of/IN
them/PRP
./.
At/IN
a/DT
back-yard/JJ
barbecue/NN
,/,
for/IN
example/NN
,/,
a/DT
friend/NN
boasts/VBZ
that/IN
she/PRP
'll/MD
only/RB
have/VB
to/TO
pay/VB
premiums/NNS
on/IN
her/PRP$
John/NNP
Hancock/NNP
policy/NN
for/IN
seven/CD
years/NNS
and/CC
that/IN
her/PRP$
death/NN
benefits/NNS
will/MD
then/RB
be/VB
``/``
guaranteed/VBN
./.
''/''
I/PRP
call/VBP
her/PRP
agent/NN
,/,
David/NNP
Dominici/NNP
./.
Yes/RB
,/,
he/PRP
says/VBZ
,/,
premiums/NNS
on/IN
such/JJ
variable-rate/JJ
coverage/NN
can/MD
be/VB
structured/VBN
to/TO
``/``
vanish/VB
''/''
after/IN
a/DT
certain/JJ
period/NN
--/:
but/CC
usually/RB
only/RB
if/IN
interest/NN
rates/NNS
stay/VBP
high/JJ
enough/RB
to/TO
generate/VB
sufficient/JJ
cash/NN
to/TO
cover/VB
the/DT
annual/JJ
cost/NN
of/IN
insurance/NN
protection/NN
./.
If/IN
interest/NN
rates/NNS
plunge/VBP
,/,
the/DT
insurer/NN
may/MD
be/VB
knocking/VBG
on/IN
my/PRP$
door/NN
,/,
asking/VBG
for/IN
steeper/JJR
premium/NN
payments/NNS
to/TO
maintain/VB
the/DT
same/JJ
amount/NN
of/IN
protection/NN
./.
I/PRP
do/VBP
n't/RB
like/VB
the/DT
sound/NN
of/IN
that/DT
./.
Some/DT
insurers/NNS
have/VBP
also/RB
started/VBN
offering/VBG
``/``
persistency/NN
bonuses/NNS
,/,
''/''
such/JJ
as/IN
extra/JJ
dividends/NNS
or/CC
a/DT
marginally/RB
higher/JJR
interest/NN
yield/NN
,/,
if/IN
the/DT
policy/NN
is/VBZ
maintained/VBN
for/IN
10/CD
years/NNS
./.
But/CC
Glenn/NNP
Daily/NNP
,/,
a/DT
New/NNP
York-based/JJ
financial/JJ
consultant/NN
,/,
warns/VBZ
that/IN
many/JJ
of/IN
these/DT
bonuses/NNS
are/VBP
``/``
just/RB
fantasies/NNS
,/,
''/''
because/IN
most/JJS
are/VBP
n't/RB
guaranteed/VBN
by/IN
the/DT
companies/NNS
./.
And/CC
the/DT
feature/NN
is/VBZ
so/RB
new/JJ
,/,
he/PRP
adds/VBZ
,/,
that/IN
no/DT
insurer/NN
has/VBZ
yet/RB
established/VBN
a/DT
track/NN
record/NN
for/IN
actually/RB
making/VBG
such/JJ
payments/NNS
./.
So-called/JJ
living-benefits/JJ
provisions/NNS
also/RB
merit/VBP
a/DT
close/JJ
inspection/NN
./.
Offered/VBN
by/IN
insurers/NNS
that/WDT
include/VBP
Security-Connecticut/NNP
Life/NNP
Insurance/NNP
Co./NNP
,/,
Jackson/NNP
National/NNP
Life/NNP
Insurance/NNP
Co./NNP
,/,
and/CC
National/NNP
Travelers/NNP
Life/NNP
Insurance/NNP
Co./NNP
,/,
these/DT
policy/NN
riders/NNS
let/VBP
me/PRP
tap/VB
a/DT
portion/NN
of/IN
my/PRP$
death/NN
benefits/NNS
while/IN
I/PRP
'm/VBP
still/RB
alive/JJ
./.
Some/DT
provisions/NNS
would/MD
let/VB
me/PRP
collect/VB
a/DT
percentage/NN
of/IN
the/DT
policy/NN
's/POS
face/NN
value/NN
to/TO
pay/VB
for/IN
long-term/JJ
care/NN
such/JJ
as/IN
nursing-home/NN
stays/NNS
;/:
others/NNS
would/MD
allow/VB
payments/NNS
for/IN
catastrophic/JJ
illnesses/NNS
and/CC
conditions/NNS
such/JJ
as/IN
cancer/NN
,/,
heart/NN
attarcks/NNS
,/,
renal/JJ
failure/NN
and/CC
kidney/NN
transplants/NNS
./.
But/CC
the/DT
catastrophic/JJ
events/NNS
for/IN
which/WDT
the/DT
policyholder/NN
can/MD
collect/VB
are/VBP
narrowly/RB
defined/VBN
,/,
vary/VBP
from/IN
policy/NN
to/TO
policy/NN
,/,
and/CC
generally/RB
permit/VBP
use/NN
of/IN
only/RB
a/DT
small/JJ
fraction/NN
of/IN
the/DT
face/NN
amount/NN
of/IN
insurance/NN
./.
Also/RB
,/,
financial/JJ
planners/NNS
advising/VBG
on/IN
insurance/NN
say/VBP
that/IN
to/TO
their/PRP$
knowledge/NN
there/EX
has/VBZ
not/RB
yet/RB
been/VBN
a/DT
tax/NN
ruling/NN
exempting/VBG
these/DT
advance/NN
payments/NNS
from/IN
taxes/NNS
./.
And/CC
considering/VBG
the/DT
extra/JJ
cost/NN
of/IN
such/JJ
provisions/NNS
,/,
some/DT
figure/NN
that/IN
people/NNS
interested/JJ
in/IN
,/,
say/VB
,/,
paying/VBG
for/IN
extended/VBN
nursing-home/NN
care/NN
would/MD
be/VB
better/JJR
off/RP
just/RB
buying/VBG
a/DT
separate/JJ
policy/NN
that/WDT
provides/VBZ
it/PRP
./.
I/PRP
'm/VBP
more/RBR
favorably/RB
impressed/VBN
by/IN
``/``
no-load/JJ
life/NN
,/,
''/''
even/RB
though/IN
it/PRP
turns/VBZ
out/RP
to/TO
be/VB
low-load/JJ
life/NN
./.
Insureres/NNS
selling/VBG
these/DT
policies/NNS
market/VBP
them/PRP
directly/RB
to/TO
the/DT
public/NN
or/CC
otherwise/RB
do/VBP
n't/RB
use/VB
commissioned/VBN
salesmen/NNS
;/:
there/EX
is/VBZ
still/RB
a/DT
load/NN
--/:
annual/JJ
administrative/JJ
fees/NNS
and/CC
initial/JJ
``/``
setup/NN
''/''
charges/NNS
--/:
but/CC
I/PRP
figure/VBP
that/IN
the/DT
lack/NN
of/IN
commission/NN
and/CC
of/IN
``/``
surrender/NN
fees/NNS
''/''
for/IN
dropping/VBG
the/DT
policy/NN
early/RB
still/RB
saves/VBZ
me/PRP
a/DT
lot/NN
./.
I/PRP
compared/VBD
one/CD
universal/JJ
policy/NN
for/IN
$/$
130,000/CD
face/NN
amount/NN
from/IN
such/JJ
an/DT
insurer/NN
,/,
American/NNP
Life/NNP
Insurance/NNP
Corp./NNP
of/IN
Lincoln/NNP
,/,
Neb./NNP
,/,
with/IN
a/DT
similar/JJ
offering/NN
from/IN
Equitable/NNP
Life/NNP
Assurance/NNP
Society/NNP
of/IN
the/DT
U.S./NNP
,/,
which/WDT
operates/VBZ
through/IN
11,000/CD
commissioned/VBN
salesmen/NNS
./.
After/IN
one/CD
year/NN
I/PRP
could/MD
walk/VB
away/RB
from/IN
the/DT
Ameritas/NNP
policy/NN
with/IN
$/$
792/CD
,/,
but/CC
Id/NN
get/VB
only/RB
$/$
14/CD
from/IN
the/DT
Equitable/NNP
./.
The/DT
difference/NN
is/VBZ
magnified/VBN
by/IN
time/NN
,/,
too/RB
./.
At/IN
age/NN
65/CD
,/,
when/WRB
I/PRP
'd/MD
stop/VB
paying/VBG
premiums/NNS
,/,
the/DT
Ameritas/NNP
offering/NN
would/MD
have/VB
a/DT
projected/VBN
cash/NN
value/NN
$/$
14,000/CD
higher/JJR
than/IN
the/DT
other/JJ
,/,
even/RB
though/IN
the/DT
Equitable/NNP
's/POS
policy/NN
illustration/NN
assumed/VBD
a/DT
fractionally/RB
higher/JJR
interest/NN
rate/NN
./.
Did/VBD
I/PRP
buy/VB
it/PRP
?/.
Well/RB
,/,
not/RB
yet/RB
./.
I/PRP
'm/VBP
thinking/VBG
about/IN
using/VBG
the/DT
$/$
871/CD
annual/JJ
premium/NN
to/TO
finance/VB
a/DT
trip/NN
to/TO
Paris/NNP
first/RB
./.
A/DT
person/NN
can/MD
do/VB
some/DT
heavy/JJ
thinking/NN
about/IN
insurance/NN
there/RB
--/:
and/CC
shop/VB
for/IN
something/NN
more/RBR
exciting/JJ
while/IN
she/PRP
's/VBZ
doing/VBG
it/PRP
./.
Rorer/NNP
Group/NNP
Inc./NNP
will/MD
report/VB
that/IN
third-quarter/JJ
profit/NN
rose/VBD
more/RBR
than/IN
15/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
,/,
though/IN
the/DT
gain/NN
is/VBZ
wholly/RB
due/JJ
to/TO
asset/NN
sales/NNS
,/,
Robert/NNP
Cawthorn/NNP
,/,
chairman/NN
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
said/VBD
./.
His/PRP$
projection/NN
indicates/VBZ
profit/NN
in/IN
the/DT
latest/JJS
quarter/NN
of/IN
more/JJR
than/IN
$/$
17.4/CD
million/CD
,/,
or/CC
55/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
$/$
15.2/CD
million/CD
,/,
or/CC
48/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
ago/RB
./.
Mr./NNP
Cawthorn/NNP
said/VBD
in/IN
an/DT
interview/NN
that/IN
sales/NNS
will/MD
show/VB
an/DT
increase/NN
from/IN
a/DT
year/NN
ago/RB
of/IN
``/``
somewhat/RB
less/JJR
than/IN
10/CD
%/NN
./.
''/''
Through/IN
the/DT
first/JJ
six/CD
months/NNS
of/IN
1989/CD
,/,
sales/NNS
had/VBD
grown/VBN
about/RB
12/CD
%/NN
from/IN
the/DT
year-earlier/JJ
period/NN
./.
Growth/NN
of/IN
10/CD
%/NN
would/MD
make/VB
sales/NNS
for/IN
the/DT
latest/JJS
quarter/NN
$/$
269/CD
million/CD
,/,
compared/VBN
with/IN
$/$
244.6/CD
million/CD
a/DT
year/NN
ago/RB
./.
Mr./NNP
Cawthorn/NNP
said/VBD
the/DT
profit/NN
growth/NN
in/IN
the/DT
latest/JJS
quarter/NN
was/VBD
due/JJ
to/TO
the/DT
sale/NN
of/IN
two/CD
Rorer/NNP
drugs/NNS
./.
Asilone/NNP
,/,
an/DT
antacid/NN
,/,
was/VBD
sold/VBN
to/TO
Boots/NNP
PLC/NNP
,/,
London/NNP
./.
Thrombinar/NNP
,/,
a/DT
drug/NN
used/VBN
to/TO
stanch/VB
bleeding/NN
,/,
was/VBD
sold/VBN
to/TO
Jones/NNP
Medical/NNP
Industries/NNP
Inc./NNP
,/,
St./NNP
Louis/NNP
./.
He/PRP
said/VBD
Rorer/NNP
sold/VBD
the/DT
drugs/NNS
for/IN
``/``
nice/JJ
prices/NNS
''/''
and/CC
will/MD
record/VB
a/DT
combined/VBN
,/,
pretax/JJ
gain/NN
on/IN
the/DT
sales/NNS
of/IN
$/$
20/CD
million/CD
./.
As/IN
the/DT
gain/NN
from/IN
the/DT
sales/NNS
indicates/VBZ
,/,
operating/NN
profit/NN
was/VBD
``/``
significantly/RB
''/''
below/IN
the/DT
year-earlier/JJ
level/NN
,/,
Mr./NNP
Cawthorn/NNP
said/VBD
./.
Rorer/NNP
in/IN
July/NNP
had/VBD
projected/VBN
lower/JJR
third-quarter/JJ
operating/NN
profit/NN
but/CC
higher/JJR
profit/NN
for/IN
all/DT
of/IN
1989/CD
./.
He/PRP
said/VBD
the/DT
company/NN
is/VBZ
still/RB
looking/VBG
for/IN
``/``
a/DT
strong/JJ
fourth/JJ
quarter/NN
in/IN
all/DT
areas/NNS
--/:
sales/NNS
,/,
operating/NN
income/NN
and/CC
net/JJ
income/NN
./.
''/''
Mr./NNP
Cawthorn/NNP
attributed/VBD
the/DT
decline/NN
in/IN
third-quarter/JJ
operating/NN
profit/NN
to/TO
the/DT
stronger/JJR
dollar/NN
,/,
which/WDT
reduces/VBZ
the/DT
value/NN
of/IN
overseas/JJ
profit/NN
when/WRB
it/PRP
is/VBZ
translated/VBN
into/IN
dollars/NNS
;/:
to/TO
accelerated/VBN
buying/NN
of/IN
Rorer/NNP
products/NNS
in/IN
the/DT
second/JJ
quarter/NN
because/IN
of/IN
a/DT
then-pending/JJ
July/NNP
1/CD
price/NN
increase/NN
,/,
and/CC
to/TO
higher/JJR
marketing/NN
expenses/NNS
for/IN
Rorer/NNP
's/POS
Maalox/NNP
antacid/NN
,/,
whose/WP$
sales/NNS
and/CC
market/NN
share/NN
in/IN
the/DT
U.S./NNP
had/VBD
slipped/VBN
in/IN
the/DT
first/JJ
half/NN
of/IN
1989/CD
./.
He/PRP
said/VBD
Rorer/NNP
opted/VBD
to/TO
sell/VB
Asilone/NNP
and/CC
Thrombinar/NNP
to/TO
raise/VB
revenue/NN
that/WDT
would/MD
``/``
kick/NN
start/VB
''/''
its/PRP$
increased/VBN
marketing/NN
efforts/NNS
behind/IN
Maalox/NNP
,/,
still/RB
its/PRP$
top-selling/JJ
product/NN
with/IN
about/RB
$/$
215/CD
million/CD
in/IN
world-wide/JJ
sales/NNS
in/IN
1988/CD
./.
``/``
We/PRP
had/VBD
underfunded/VBN
Maalox/NNP
for/IN
a/DT
year/NN
,/,
''/''
he/PRP
said/VBD
,/,
because/IN
the/DT
company/NN
was/VBD
concentrating/VBG
on/IN
research/NN
and/CC
development/NN
and/CC
promoting/VBG
other/JJ
drugs/NNS
./.
He/PRP
said/VBD
Rorer/NNP
will/MD
spend/VB
$/$
15/CD
million/CD
to/TO
$/$
20/CD
million/CD
more/JJR
on/IN
Maalox/NNP
advertising/NN
and/CC
promotion/NN
in/IN
the/DT
second/JJ
half/NN
of/IN
1989/CD
than/IN
in/IN
the/DT
year-earlier/JJ
period/NN
./.
A/DT
``/``
big/JJ
chunk/NN
''/''
of/IN
that/DT
additional/JJ
spending/NN
came/VBD
in/IN
the/DT
third/JJ
quarter/NN
,/,
he/PRP
said/VBD
./.
Hoechst/NNP
AG/NNP
said/VBD
it/PRP
will/MD
stop/VB
producing/VBG
fertilizer/NN
in/IN
1990/CD
because/IN
of/IN
continued/VBN
losses/NNS
and/CC
a/DT
bleak/JJ
outlook/NN
./.
The/DT
West/JJ
German/JJ
chemical/NN
concern/NN
said/VBD
it/PRP
will/MD
close/VB
the/DT
last/JJ
remaining/JJ
fertilizer/NN
plant/NN
in/IN
Oberhausen/NNP
in/IN
the/DT
fall/NN
of/IN
next/JJ
year/NN
./.
Hoechst/NNP
said/VBD
the/DT
fertilizer/NN
market/NN
faces/VBZ
overcapacity/NN
in/IN
Western/NNP
Europe/NNP
,/,
rising/JJ
imports/NNS
from/IN
East/JJ
bloc/NN
countries/NNS
and/CC
overseas/RB
,/,
and/CC
declining/VBG
demand/NN
./.
HomeFed/NNP
Corp./NNP
said/VBD
its/PRP$
main/JJ
subsidiary/NN
,/,
Home/NNP
Federal/NNP
Savings/NNP
&/CC
Loan/NNP
,/,
converted/VBD
from/IN
a/DT
federal/JJ
savings/NNS
and/CC
loan/NN
to/TO
a/DT
federal/JJ
savings/NNS
bank/NN
and/CC
changed/VBD
its/PRP$
name/NN
to/TO
HomeFed/NNP
Bank/NNP
./.
The/DT
federal/JJ
Office/NNP
of/IN
Thrift/NNP
Supervision/NNP
approved/VBD
the/DT
conversion/NN
last/JJ
Friday/NNP
,/,
HomeFed/NNP
said/VBD
./.
The/DT
change/NN
in/IN
charter/NN
does/VBZ
n't/RB
alter/VB
the/DT
federal/JJ
insurance/NN
of/IN
deposits/NNS
,/,
federal/JJ
regulatory/JJ
powers/NNS
or/CC
company/NN
operations/NNS
,/,
a/DT
spokesman/NN
said/VBD
./.
It/PRP
was/VBD
the/DT
second/JJ
anniversary/NN
of/IN
the/DT
1987/CD
crash/NN
,/,
but/CC
this/DT
time/NN
it/PRP
was/VBD
different/JJ
./.
Stocks/NNS
rallied/VBD
on/IN
good/JJ
earnings/NNS
reports/NNS
and/CC
on/IN
data/NNS
that/WDT
showed/VBD
less/JJR
inflation/NN
than/IN
expected/VBN
./.
Blue/JJ
chips/NNS
led/VBD
the/DT
march/NN
up/RB
in/IN
heavy/JJ
trading/NN
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
rose/VBD
39.55/CD
points/NNS
to/TO
2683.20/CD
./.
The/DT
30/CD
industrials/NNS
led/VBD
the/DT
market/NN
higher/RBR
from/IN
the/DT
opening/NN
bell/NN
as/IN
foreign/JJ
buyers/NNS
stepped/VBD
in/RP
./.
By/IN
afternoon/NN
,/,
the/DT
broader/JJR
market/NN
joined/VBD
the/DT
advance/NN
in/IN
full/JJ
strength/NN
./.
Standard/NNP
&/CC
Poor/NNP
's/POS
500-stock/JJ
Index/NNP
rose/VBD
5.37/CD
to/TO
347.13/CD
and/CC
the/DT
Nasdaq/NNP
composite/JJ
index/NN
jumped/VBD
7.52/CD
to/TO
470.80/CD
./.
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
volume/NN
swelled/VBD
to/TO
198,120,000/CD
shares/NNS
./.
The/DT
industrials/NNS
were/VBD
up/RB
about/RB
60/CD
points/NNS
in/IN
the/DT
afternoon/NN
,/,
but/CC
cautious/JJ
investors/NNS
took/VBD
profits/NNS
before/IN
the/DT
close/NN
./.
Traders/NNS
said/VBD
a/DT
variety/NN
of/IN
factors/NNS
triggered/VBD
the/DT
rally/NN
./.
The/DT
consumer/NN
price/NN
index/NN
rose/VBD
0.2/CD
%/NN
in/IN
September/NNP
,/,
while/IN
many/JJ
economists/NNS
were/VBD
looking/VBG
for/IN
a/DT
0.4/CD
%/NN
increase/NN
./.
Stock-index/JJ
arbitrage/NN
buy/NN
programs/NNS
--/:
in/IN
which/WDT
traders/NNS
buy/VBP
stock/NN
against/IN
offsetting/JJ
positions/NNS
in/IN
futures/NNS
to/TO
lock/VB
in/RP
price/NN
differences/NNS
--/:
helped/VBD
the/DT
rally/NN
's/POS
momentum/NN
./.
The/DT
euphoria/NN
was/VBD
such/JJ
that/IN
investors/NNS
responded/VBD
to/TO
good/JJ
earnings/NNS
reports/NNS
of/IN
companies/NNS
such/JJ
as/IN
American/NNP
Express/NNP
,/,
while/IN
ignoring/VBG
the/DT
disappointing/JJ
profits/NNS
of/IN
companies/NNS
such/JJ
as/IN
Caterpillar/NNP
,/,
analysts/NNS
said/VBD
./.
Stock-index/JJ
arbitrage/NN
trading/NN
was/VBD
a/DT
minor/JJ
influence/NN
in/IN
yesterday/NN
's/POS
rally/NN
,/,
traders/NNS
said/VBD
./.
Institutional/JJ
buyers/NNS
were/VBD
the/DT
main/JJ
force/NN
pushing/VBG
blue/JJ
chips/NNS
higher/RBR
./.
To/TO
the/DT
amazement/NN
of/IN
some/DT
traders/NNS
,/,
takeover/NN
stocks/NNS
were/VBD
climbing/VBG
again/RB
./.
Hilton/NNP
rose/VBD
2/CD
7\/8/CD
to/TO
100/CD
,/,
for/IN
example/NN
./.
Last/JJ
Friday/NNP
,/,
takeover/NN
traders/NNS
spilled/VBD
out/RP
of/IN
Hilton/NNP
,/,
knocking/VBG
the/DT
stock/NN
down/RB
21/CD
1\/2/CD
to/TO
85/CD
./.
Among/IN
other/JJ
stocks/NNS
involved/VBN
in/IN
restructurings/NNS
or/CC
rumored/VBN
to/TO
be/VB
so/RB
:/:
Holiday/NNP
Corp./NNP
gained/VBD
1/CD
7\/8/CD
to/TO
73/CD
and/CC
Honeywell/NNP
rose/VBD
2/CD
7\/8/CD
to/TO
81/CD
1\/2/CD
./.
One/CD
floor/NN
trader/NN
noted/VBD
in/IN
astonishment/NN
that/IN
nobody/NN
seemed/VBD
to/TO
mind/VB
the/DT
news/NN
that/IN
British/NNP
Airways/NNP
is/VBZ
n't/RB
making/VBG
a/DT
special/JJ
effort/NN
to/TO
revive/VB
the/DT
UAL/NNP
buy-out/NN
./.
The/DT
announcement/NN
of/IN
the/DT
buy-out/NN
's/POS
troubles/NNS
triggered/VBD
the/DT
market/NN
's/POS
nose/NN
dive/NN
a/DT
week/NN
ago/RB
./.
Takeover/NN
enthusiasm/NN
may/MD
have/VB
been/VBN
renewed/VBN
when/WRB
an/DT
investor/NN
group/NN
disclosed/VBD
yesterday/NN
that/IN
it/PRP
had/VBD
obtained/VBN
all/DT
the/DT
financing/NN
required/VBN
to/TO
complete/VB
its/PRP$
$/$
1.6/CD
billion/CD
leveraged/VBN
buy-out/NN
of/IN
American/NNP
Medical/NNP
International/NNP
./.
``/``
That/DT
's/VBZ
put/VB
some/DT
oomph/NN
back/RB
into/IN
this/DT
market/NN
,/,
''/''
said/VBD
Peter/NNP
VandenBerg/NNP
,/,
a/DT
vice/NN
president/NN
of/IN
equity/NN
trading/NN
at/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
./.
But/CC
some/DT
traders/NNS
thought/VBD
there/EX
was/VBD
less/JJR
to/TO
the/DT
rally/NN
than/IN
met/VBD
the/DT
eye/NN
./.
``/``
There/EX
is/VBZ
no/DT
strength/NN
behind/IN
this/DT
rally/NN
,/,
''/''
asserted/VBD
Chung/NNP
Lew/NNP
,/,
head/NN
trader/NN
at/IN
Kleinwort/NNP
Benson/NNP
North/NNP
America/NNP
./.
``/``
It/PRP
's/VBZ
traders/NNS
squaring/VBG
positions/NNS
./.
It/PRP
's/VBZ
not/RB
good/JJ
;/:
the/DT
market/NN
is/VBZ
setting/VBG
up/RP
for/IN
another/DT
fall/NN
./.
''/''
Indeed/RB
,/,
many/JJ
traders/NNS
said/VBD
that/DT
uncertainty/NN
about/IN
today/NN
's/POS
monthly/JJ
expiration/NN
of/IN
stocks-index/JJ
futures/NNS
and/CC
options/NNS
,/,
and/CC
options/NNS
on/IN
individual/JJ
stocks/NNS
,/,
prompted/VBD
a/DT
lot/NN
of/IN
buying/NN
by/IN
speculative/JJ
traders/NNS
who/WP
were/VBD
unwinding/VBG
positions/NNS
that/WDT
were/VBD
bets/NNS
on/IN
declining/JJ
stock/NN
prices/NNS
./.
The/DT
number/NN
of/IN
outstanding/JJ
contracts/NNS
in/IN
the/DT
October/NNP
Major/NNP
Market/NNP
Index/NNP
jumped/VBD
from/IN
5,273/CD
on/IN
Friday/NNP
to/TO
9,023/CD
on/IN
Monday/NNP
./.
The/DT
MMI/NNP
is/VBZ
a/DT
20-stock/JJ
index/NN
that/IN
mimics/NNS
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
./.
Outstanding/JJ
contracts/NNS
are/VBP
those/DT
that/WDT
remain/VBP
to/TO
be/VB
liquidated/VBN
./.
By/IN
Wednesday/NNP
,/,
the/DT
outstanding/JJ
October/NNP
contracts/NNS
amounted/VBD
to/TO
8,524/CD
,/,
representing/VBG
about/RB
$/$
1.13/CD
billion/CD
in/IN
stock/NN
,/,
noted/VBD
Donald/NNP
Selkin/NNP
,/,
head/NN
of/IN
stock-index/JJ
futures/NNS
research/NN
at/IN
Prudential-Bache/NNP
Securities/NNP
,/,
who/WP
expects/VBZ
a/DT
volatile/JJ
expiration/NN
today/NN
./.
``/``
There/EX
has/VBZ
been/VBN
a/DT
tremendous/JJ
increase/NN
''/''
in/IN
MMI/NNP
positions/NNS
,/,
Mr./NNP
Selkin/NNP
said/VBD
./.
Consumer/NN
stocks/NNS
once/RB
again/RB
set/VBD
the/DT
pace/NN
for/IN
blue-chip/JJ
issues/NNS
./.
Philip/NNP
Morris/NNP
added/VBD
1/CD
1\/8/CD
to/TO
44/CD
1\/2/CD
in/IN
Big/NNP
Board/NNP
composite/NN
trading/NN
of/IN
3.7/CD
million/CD
shares/NNS
,/,
Coca-Cola/NNP
Co./NNP
gained/VBD
2/CD
3\/8/CD
to/TO
70/CD
3\/8/CD
,/,
Merck/NNP
gained/VBD
1/CD
3\/8/CD
to/TO
77/CD
3\/8/CD
and/CC
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
advanced/VBD
7\/8/CD
to/TO
43/CD
3\/8/CD
on/IN
2.5/CD
million/CD
shares/NNS
./.
American/NNP
Medical/NNP
jumped/VBD
1/CD
7\/8/CD
to/TO
23/CD
5\/8/CD
./.
IMA/NNP
Acquisition/NNP
,/,
an/DT
investor/NN
group/NN
that/WDT
includes/VBZ
First/NNP
Boston/NNP
and/CC
the/DT
Pritzker/NNP
family/NN
of/IN
Chicago/NNP
,/,
said/VBD
Chemical/NNP
Bank/NNP
had/VBD
made/VBN
arrangements/NNS
for/IN
23/CD
other/JJ
banks/NNS
to/TO
provide/VB
$/$
509/CD
million/CD
in/IN
bank/NN
financing/NN
for/IN
the/DT
buy-out/NN
offer/NN
./.
Chemical/NNP
and/CC
six/CD
other/JJ
banks/NNS
,/,
along/IN
with/IN
First/NNP
Boston/NNP
,/,
are/VBP
providing/VBG
the/DT
rest/NN
of/IN
the/DT
$/$
1.6/CD
billion/CD
./.
Elsewhere/RB
on/IN
the/DT
takeover/NN
front/NN
,/,
Time/NNP
Warner/NNP
advanced/VBD
2/CD
5\/8/CD
to/TO
136/CD
5\/8/CD
and/CC
Warner/NNP
Communications/NNP
tacked/VBD
on/RP
7\/8/CD
to/TO
63/CD
7\/8/CD
./.
The/DT
Delaware/NNP
Supreme/NNP
Court/NNP
affirmed/VBD
a/DT
ruling/NN
that/WDT
barred/VBD
Chris-Craft/NNP
Industries/NNP
from/IN
voting/VBG
its/PRP$
Warner/NNP
preferred/VBD
stock/NN
as/IN
a/DT
separate/JJ
class/NN
in/IN
deciding/VBG
on/RP
the/DT
companies/NNS
'/POS
proposed/VBN
merger/NN
./.
Paramount/NNP
Communications/NNP
climbed/VBD
1/CD
1\/4/CD
to/TO
58/CD
1\/2/CD
and/CC
MCA/NNP
rose/VBD
1/CD
1\/2/CD
to/TO
64/CD
;/:
both/DT
media/NNS
companies/NNS
have/VBP
long/RB
been/VBN
mentioned/VBN
as/IN
potential/JJ
acquisition/NN
candidates/NNS
./.
Among/IN
other/JJ
actual/JJ
and/CC
rumored/VBN
targets/NNS
,/,
Woolworth/NNP
rose/VBD
1/CD
1\/4/CD
to/TO
60/CD
1\/2/CD
,/,
Upjohn/NNP
went/VBD
up/RB
1/CD
1\/8/CD
to/TO
39/CD
3\/4/CD
,/,
Armstrong/NNP
World/NNP
Industries/NNP
gained/VBD
1/CD
to/TO
40/CD
1\/8/CD
and/CC
Kollmorgen/NNP
rose/VBD
3\/4/CD
to/TO
13/CD
7\/8/CD
./.
In/IN
addition/NN
:/:
--/:
Soo/NNP
Line/NNP
jumped/VBD
2/CD
3\/4/CD
to/TO
20/CD
1\/4/CD
,/,
above/IN
the/DT
$/$
19.50/CD
a/DT
share/NN
that/IN
Canadian/NNP
Pacific/NNP
offered/VBD
for/IN
the/DT
company/NN
in/IN
a/DT
takeover/NN
proposal/NN
./.
--/:
Xtra/NN
gained/VBN
1/CD
1\/8/CD
to/TO
27/CD
1\/8/CD
./.
Investor/NNP
Robert/NNP
M./NNP
Gintel/NNP
,/,
who/WP
owns/VBZ
a/DT
4.7/CD
%/NN
stake/NN
in/IN
the/DT
company/NN
,/,
said/VBD
he/PRP
plans/VBZ
a/DT
proxy/NN
fight/NN
for/IN
control/NN
of/IN
its/PRP$
board/NN
./.
--/:
Golden/NNP
Nugget/NNP
rose/VBD
2/CD
to/TO
28/CD
1\/4/CD
./.
Its/PRP$
board/NN
approved/VBD
the/DT
repurchase/VBD
of/IN
as/RB
many/JJ
as/IN
three/CD
million/CD
common/JJ
shares/NNS
,/,
or/CC
about/RB
17/CD
%/NN
of/IN
its/PRP$
shares/NNS
outstanding/JJ
./.
Buying/NN
interest/NN
also/RB
resurfaced/VBD
in/IN
the/DT
technology/NN
sector/NN
,/,
including/VBG
International/NNP
Business/NNP
Machines/NNP
,/,
whose/WP$
board/NN
approved/VBD
a/DT
$/$
1/CD
billion/CD
increase/NN
in/IN
its/PRP$
stock/NN
buy-back/JJ
program/NN
./.
IBM/NNP
rose/VBD
2/CD
3\/8/CD
to/TO
104/CD
1\/8/CD
as/IN
2.2/CD
million/CD
shares/NNS
changed/VBD
hands/NNS
./.
Compaq/NNP
Computer/NNP
soared/VBD
4/CD
5\/8/CD
to/TO
111/CD
1\/8/CD
on/IN
1.8/CD
million/CD
shares/NNS
in/IN
response/NN
to/TO
the/DT
company/NN
's/POS
announcement/NN
of/IN
plans/NNS
to/TO
introduce/VB
several/JJ
products/NNS
next/IN
month/NN
./.
Digital/NNP
Equipment/NNP
gained/VBD
1/CD
3\/8/CD
to/TO
89/CD
3\/4/CD
despite/IN
reporting/VBG
earnings/NNS
for/IN
the/DT
September/NNP
quarter/NN
that/WDT
were/VBD
on/IN
the/DT
low/JJ
end/NN
of/IN
expectations/NNS
./.
Among/IN
other/JJ
technology/NN
issues/NNS
,/,
Cray/NNP
Research/NNP
rose/VBD
1/CD
5\/8/CD
to/TO
37/CD
,/,
Hewlett-Packard/NNP
added/VBD
1/CD
1\/4/CD
to/TO
50/CD
1\/4/CD
,/,
Tandem/NNP
Computers/NNP
rallied/VBD
1/CD
1\/8/CD
to/TO
25/CD
3\/4/CD
,/,
Data/NNP
General/NNP
rose/VBD
3\/4/CD
to/TO
14/CD
1\/2/CD
and/CC
Motorola/NNP
gained/VBN
2/CD
3\/8/CD
to/TO
59/CD
1\/4/CD
./.
On/IN
the/DT
other/JJ
hand/NN
,/,
Symbol/NNP
Technologies/NNP
dropped/VBD
1/CD
1\/4/CD
to/TO
18/CD
1\/2/CD
after/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
lowered/VBD
its/PRP$
short-term/JJ
investment/NN
rating/NN
on/IN
the/DT
stock/NN
and/CC
its/PRP$
1989/CD
earnings/NNS
estimate/NN
,/,
and/CC
Commodore/NNP
International/NNP
fell/VBD
7\/8/CD
to/TO
8/CD
after/IN
the/DT
company/NN
said/VBD
it/PRP
expects/VBZ
to/TO
post/VB
a/DT
loss/NN
for/IN
the/DT
September/NNP
quarter/NN
./.
Insurance/NN
stocks/NNS
continued/VBD
to/TO
climb/VB
on/IN
expectations/NNS
that/IN
premium/NN
rates/NNS
will/MD
rise/VB
in/IN
the/DT
aftermath/NN
of/IN
the/DT
earthquake/NN
in/IN
the/DT
San/NNP
Francisco/NNP
area/NN
./.
American/NNP
International/NNP
Group/NNP
climbed/VBD
4/CD
to/TO
106/CD
5\/8/CD
,/,
General/NNP
Re/NNP
rose/VBD
3/CD
1\/8/CD
to/TO
89/CD
5\/8/CD
,/,
Kemper/NNP
added/VBD
2/CD
1\/2/CD
to/TO
48/CD
,/,
AON/NNP
went/VBD
up/RB
1/CD
3\/8/CD
to/TO
36/CD
and/CC
Chubb/NNP
rose/VBD
1/CD
1\/4/CD
to/TO
82/CD
1\/4/CD
./.
Stocks/NNS
of/IN
major/JJ
toy/NN
makers/NNS
rallied/VBN
in/IN
the/DT
wake/NN
of/IN
strong/JJ
third-quarter/JJ
earnings/NNS
reports/NNS
./.
Mattel/NNP
added/VBN
1/CD
1\/4/CD
to/TO
19/CD
5\/8/CD
,/,
Tonka/NNP
firmed/VBD
1/CD
to/TO
18/CD
1\/2/CD
and/CC
Lewis/NNP
Galoob/NNP
Toys/NNP
rose/VBD
7\/8/CD
to/TO
13/CD
5\/8/CD
on/IN
the/DT
Big/NNP
Board/NNP
,/,
while/IN
Hasbro/NNP
gained/VBD
1/CD
to/TO
21/CD
7\/8/CD
on/IN
the/DT
American/NNP
Stock/NNP
Exchange/NNP
./.
Capital/NNP
Cities-ABC/NNP
surged/VBD
42/CD
5\/8/CD
to/TO
560/CD
./.
Kidder/NNP
Peabody/NNP
raised/VBD
its/PRP$
investment/NN
rating/NN
on/IN
the/DT
stock/NN
and/CC
its/PRP$
earnings/NNS
estimates/NNS
for/IN
1989/CD
and/CC
1990/CD
,/,
based/VBN
on/IN
optimism/NN
that/IN
the/DT
company/NN
's/POS
ABC/NNP
television/NN
network/NN
will/MD
continue/VB
to/TO
fare/VB
well/RB
in/IN
the/DT
ratings/NNS
./.
Dun/NNP
&/CC
Bradstreet/NNP
lost/VBD
1/CD
7\/8/CD
to/TO
51/CD
7\/8/CD
on/IN
1.8/CD
million/CD
shares/NNS
./.
Merrill/NNP
Lynch/NNP
lowered/VBD
its/PRP$
short-term/JJ
rating/NN
on/IN
the/DT
stock/NN
and/CC
its/PRP$
estimate/NN
of/IN
1990/CD
earnings/NNS
,/,
citing/VBG
a/DT
sales/NNS
slowdown/NN
in/IN
the/DT
company/NN
's/POS
credit-rating/JJ
business/NN
./.
Pinnacle/NNP
West/NNP
Capital/NNP
,/,
which/WDT
suspended/VBD
its/PRP$
common-stock/JJ
dividend/NN
indefinitely/RB
and/CC
reported/VBD
a/DT
91/CD
%/NN
decline/NN
in/IN
third-quarter/JJ
earnings/NNS
,/,
fell/VBD
5\/8/CD
to/TO
11/CD
3\/8/CD
./.
The/DT
Amex/NNP
Market/NNP
Value/NNP
Index/NNP
recorded/VBD
its/PRP$
sharpest/JJS
gain/NN
of/IN
the/DT
year/NN
by/IN
climbing/VBG
4.74/CD
to/TO
382.81/CD
./.
Volume/NN
totaled/VBD
14,580,000/CD
shares/NNS
./.
B.A.T/NNP
Industries/NNP
,/,
the/DT
most/RBS
active/JJ
Amex/NNP
issue/NN
,/,
rose/VBD
3\/8/CD
to/TO
12/CD
3\/8/CD
./.
The/DT
company/NN
received/VBD
shareholder/NN
approval/NN
for/IN
its/PRP$
restructuring/NN
plan/NN
,/,
designed/VBN
to/TO
fend/VB
off/RP
a/DT
hostile/JJ
takeover/NN
bid/NN
from/IN
a/DT
group/NN
headed/VBN
by/IN
financier/NN
Sir/NNP
James/NNP
Goldsmith/NNP
./.
Chambers/NNP
Development/NNP
Class/NNP
A/NNP
jumped/VBD
3/CD
1\/8/CD
to/TO
37/CD
1\/8/CD
and/CC
Class/NNP
B/NNP
rose/VBD
2/CD
5\/8/CD
to/TO
37/CD
1\/4/CD
./.
The/DT
company/NN
said/VBD
six/CD
officers/NNS
are/VBP
buying/VBG
a/DT
total/NN
of/IN
$/$
1.5/CD
million/CD
of/IN
its/PRP$
stock/NN
./.
TRC/NNP
Cos./NNP
,/,
the/DT
target/NN
of/IN
an/DT
investigation/NN
by/IN
the/DT
U.S./NNP
inspector/NN
general/NN
,/,
dropped/VBD
2/CD
to/TO
10/CD
3\/4/CD
./.
The/DT
probe/NN
involves/VBZ
testing/NN
procedures/NNS
used/VBN
on/IN
certain/JJ
government/NN
contracts/NNS
by/IN
the/DT
company/NN
's/POS
Metatrace/NNP
unit/NN
./.
Avondale/NNP
Industries/NNP
Inc./NNP
,/,
New/NNP
Orleans/NNP
,/,
received/VBD
a/DT
$/$
23/CD
million/CD
contract/NN
from/IN
the/DT
Navy/NNP
to/TO
enlarge/VB
by/IN
50/CD
%/NN
the/DT
capacity/NN
of/IN
an/DT
auxiliary/JJ
oiler/NN
./.
The/DT
award/NN
results/VBZ
from/IN
the/DT
Navy/NNP
's/POS
exercising/VBG
of/IN
an/DT
option/NN
in/IN
an/DT
earlier/JJR
contract/NN
it/PRP
awarded/VBD
Avondale/NNP
./.
Richard/NNP
J./NNP
Pinola/NNP
was/VBD
elected/VBN
to/TO
the/DT
board/NN
of/IN
this/DT
personnel/NNS
consulting/NN
concern/NN
,/,
increasing/VBG
its/PRP$
size/NN
to/TO
nine/CD
members/NNS
./.
Mr./NNP
Pinola/NNP
is/VBZ
president/NN
and/CC
chief/JJ
operating/VBG
officer/NN
of/IN
Penn/NNP
Mutual/NNP
Life/NNP
Insurance/NNP
Co/NNP
./.
The/DT
Senate/NNP
rejected/VBD
a/DT
constitutional/JJ
amendment/NN
that/IN
President/NNP
Bush/NNP
sought/VBD
to/TO
protect/VB
the/DT
U.S./NNP
flag/NN
from/IN
desecration/NN
./.
The/DT
51-48/JJ
roll/NN
call/NN
fell/VBD
well/RB
short/JJ
of/IN
the/DT
two-thirds/NNS
majority/NN
needed/VBD
to/TO
approve/VB
changes/NNS
to/TO
the/DT
Constitution/NNP
./.
The/DT
vote/NN
,/,
in/IN
which/WDT
11/CD
GOP/NNP
lawmakers/NNS
voted/VBD
against/IN
Mr./NNP
Bush/NNP
's/POS
position/NN
,/,
was/VBD
a/DT
victory/NN
for/IN
Democratic/JJ
leaders/NNS
,/,
who/WP
opposed/VBD
the/DT
amendment/NN
as/IN
an/DT
intrusion/NN
on/IN
the/DT
Bill/NNP
of/IN
Rights/NNP
./.
``/``
We/PRP
can/MD
support/VB
the/DT
American/JJ
flag/NN
without/IN
changing/VBG
the/DT
American/NNP
Constitution/NNP
,/,
''/''
said/VBD
Senate/NNP
Majority/NNP
Leader/NNP
George/NNP
Mitchell/NNP
of/IN
Maine/NNP
./.
In/IN
order/NN
to/TO
defuse/VB
pressure/NN
for/IN
an/DT
amendment/NN
,/,
Mr./NNP
Mitchell/NNP
and/CC
House/NNP
Speaker/NNP
Thomas/NNP
Foley/NNP
D./NNP
,/,
Wash/NNP
./.
lawmakers/NNS
to/TO
pass/VB
a/DT
statute/NN
barring/VBG
flag/NN
desecration/NN
before/IN
voting/VBG
on/IN
the/DT
constitutional/JJ
change/NN
./.
Mr./NNP
Bush/NNP
said/VBD
he/PRP
would/MD
allow/VB
the/DT
bill/NN
to/TO
become/VB
law/NN
without/IN
his/PRP$
signature/NN
,/,
because/IN
he/PRP
said/VBD
only/RB
a/DT
constitutional/JJ
amendment/NN
can/MD
protect/VB
the/DT
flag/NN
adequately/RB
./.
In/IN
June/NNP
,/,
the/DT
Supreme/NNP
Court/NNP
threw/VBD
out/RP
the/DT
conviction/NN
of/IN
a/DT
Texas/NNP
man/NN
who/WP
set/VBD
a/DT
flag/NN
afire/RB
during/IN
a/DT
1984/CD
demonstration/NN
,/,
saying/VBG
he/PRP
was/VBD
``/``
engaging/VBG
in/IN
political/JJ
expression/NN
''/''
that/WDT
is/VBZ
protected/VBN
by/IN
the/DT
First/NNP
Amendment/NNP
./.
If/IN
you/PRP
think/VBP
you/PRP
have/VBP
stress-related/JJ
problems/NNS
on/IN
the/DT
job/NN
,/,
there/EX
's/POS
good/JJ
news/NN
and/CC
bad/JJ
news/NN
./.
You/PRP
're/VBP
probably/RB
right/JJ
,/,
and/CC
you/PRP
are/VBP
n't/RB
alone/RB
./.
A/DT
new/JJ
Gallup/NNP
Poll/NNP
study/NN
commissioned/VBN
by/IN
the/DT
New/NNP
York/NNP
Business/NNP
Group/NNP
on/IN
Health/NNP
,/,
found/VBD
that/IN
a/DT
full/JJ
25/CD
%/NN
of/IN
the/DT
work/NN
force/NN
at/IN
companies/NNS
may/MD
suffer/VB
from/IN
anxiety/NN
disorders/NNS
or/CC
a/DT
stress-related/JJ
illness/NN
,/,
with/IN
about/RB
13/CD
%/NN
suffering/VBG
from/IN
depression/NN
./.
The/DT
study/NN
surveyed/VBD
a/DT
national/JJ
group/NN
of/IN
medical/JJ
directors/NNS
,/,
personnel/NNS
managers/NNS
and/CC
employee/NN
assistance/NN
program/NN
directors/NNS
about/IN
their/PRP$
perceptions/NNS
of/IN
these/DT
problems/NNS
in/IN
their/PRP$
companies/NNS
./.
It/PRP
is/VBZ
one/CD
of/IN
a/DT
series/NN
of/IN
studies/NNS
on/IN
health/NN
commissioned/VBN
by/IN
the/DT
New/NNP
York/NNP
Business/NNP
Group/NNP
,/,
a/DT
non-profit/JJ
organization/NN
with/IN
about/RB
300/CD
members/NNS
./.
The/DT
stress/NN
study/NN
was/VBD
undertaken/VBN
because/IN
problems/NNS
related/VBN
to/TO
stress/NN
``/``
are/VBP
much/RB
more/RBR
prevalent/JJ
than/IN
they/PRP
seem/VBP
,/,
''/''
said/VBD
Leon/NNP
J./NNP
Warshaw/NNP
,/,
executive/JJ
director/NN
of/IN
the/DT
business/NN
group/NN
./.
In/IN
presenting/VBG
the/DT
study/NN
late/JJ
last/JJ
week/NN
,/,
Dr./NNP
Warshaw/NNP
estimated/VBD
the/DT
cost/NN
of/IN
these/DT
types/NNS
of/IN
disorders/NNS
to/TO
business/NN
is/VBZ
substantial/JJ
./.
Occupational/JJ
disability/NN
related/VBN
to/TO
anxiety/NN
,/,
depression/NN
and/CC
stress/NN
costs/VBZ
about/RB
$/$
8,000/CD
a/DT
case/NN
in/IN
terms/NNS
of/IN
worker/NN
's/POS
compensation/NN
./.
In/IN
terms/NNS
of/IN
days/NNS
lost/VBN
on/IN
the/DT
job/NN
,/,
the/DT
study/NN
estimated/VBD
that/IN
each/DT
affected/VBN
employee/NN
loses/VBZ
about/RB
16/CD
work/NN
days/NNS
a/DT
year/NN
because/IN
of/IN
stress/NN
,/,
anxiety/NN
or/CC
depression/NN
./.
He/PRP
added/VBD
that/IN
the/DT
cost/NN
for/IN
stress-related/JJ
compensation/NN
claims/NNS
is/VBZ
about/RB
twice/RB
the/DT
average/NN
for/IN
all/DT
injury/NN
claims/NNS
./.
``/``
We/PRP
hope/VBP
to/TO
sensitize/VB
employers/NNS
''/''
to/TO
recognize/VB
the/DT
problems/NNS
so/IN
they/PRP
can/MD
do/VB
something/NN
about/IN
them/PRP
,/,
Dr./NNP
Warshaw/NNP
said/VBD
./.
Early/JJ
intervention/NN
into/IN
these/DT
types/NNS
of/IN
problems/NNS
can/MD
apparently/RB
save/VB
businesses/NNS
long-term/JJ
expense/NN
associated/VBN
with/IN
hospitalization/NN
,/,
which/WDT
sometimes/RB
results/VBZ
when/WRB
these/DT
problems/NNS
go/VBP
untreated/JJ
for/IN
too/RB
long/RB
./.
Even/RB
the/DT
courts/NNS
are/VBP
beginning/VBG
to/TO
recognize/VB
the/DT
link/NN
between/IN
jobs/NNS
and/CC
stress-related/JJ
disorders/NNS
in/IN
compensation/NN
cases/NNS
,/,
according/VBG
to/TO
a/DT
survey/NN
by/IN
the/DT
National/NNP
Council/NNP
on/IN
Compensation/NNP
Insurance/NNP
./.
But/CC
although/IN
56/CD
%/NN
of/IN
the/DT
respondents/NNS
in/IN
the/DT
study/NN
indicated/VBD
that/IN
mental-health/JJ
problems/NNS
were/VBD
fairly/RB
pervasive/JJ
in/IN
the/DT
workplace/NN
,/,
there/EX
is/VBZ
still/RB
a/DT
social/JJ
stigma/NN
associated/VBN
with/IN
people/NNS
seeking/VBG
help/NN
./.
The/DT
disorders/NNS
,/,
which/WDT
20/CD
years/NNS
ago/RB
struck/VBD
middle-age/JJ
and/CC
older/JJR
people/NNS
,/,
``/``
now/RB
strike/VBP
people/NNS
at/IN
the/DT
height/NN
of/IN
productivity/NN
,/,
''/''
says/VBZ
Robert/NNP
M.A./NNP
Hirschfeld/NNP
,/,
of/IN
the/DT
National/NNP
Institute/NNP
of/IN
Mental/NNP
Health/NNP
,/,
who/WP
spoke/VBD
at/IN
the/DT
presentation/NN
of/IN
the/DT
study/NN
's/POS
findings/NNS
./.
The/DT
poll/NN
showed/VBD
that/IN
company/NN
size/NN
had/VBD
a/DT
bearing/NN
on/IN
a/DT
manager/NN
's/POS
view/NN
of/IN
the/DT
problem/NN
,/,
with/IN
65/CD
%/NN
of/IN
those/DT
in/IN
companies/NNS
of/IN
more/JJR
than/IN
15,000/CD
employees/NNS
saying/VBG
stress-related/JJ
problems/NNS
were/VBD
``/``
fairly/RB
pervasive/JJ
''/''
and/CC
55/CD
%/NN
of/IN
those/DT
in/IN
companies/NNS
with/IN
fewer/JJR
than/IN
4,000/CD
employees/NNS
agreeing/VBG
./.
The/DT
poll/NN
also/RB
noted/VBD
fear/NN
of/IN
a/DT
takeover/NN
as/IN
a/DT
stress-producing/JJ
event/NN
in/IN
larger/JJR
companies/NNS
./.
More/JJR
than/IN
eight/CD
in/IN
10/CD
respondents/NNS
reported/VBD
such/JJ
a/DT
stress-provoking/JJ
situation/NN
in/IN
their/PRP$
company/NN
./.
Mid-sized/JJ
companies/NNS
were/VBD
most/RBS
affected/VBN
by/IN
talk/NN
of/IN
layoffs/NNS
or/CC
plant/NN
closings/NNS
./.
The/DT
study/NN
,/,
which/WDT
received/VBD
funding/NN
from/IN
Upjohn/NNP
Co./NNP
,/,
which/WDT
makes/VBZ
several/JJ
drugs/NNS
to/TO
treat/VB
stress-related/JJ
illnesses/NNS
,/,
also/RB
found/VBD
47/CD
%/NN
of/IN
the/DT
managers/NNS
said/VBD
stress/NN
,/,
anxiety/NN
and/CC
depression/NN
contribute/VBP
to/TO
decreased/VBN
production/NN
./.
Alcohol/NN
and/CC
substance/NN
abuse/NN
as/IN
a/DT
result/NN
of/IN
stress-related/JJ
problems/NNS
was/VBD
cited/VBN
by/IN
30/CD
%/NN
of/IN
those/DT
polled/VBN
./.
Although/IN
Dr./NNP
Warshaw/NNP
points/NNS
out/IN
that/DT
stress/NN
and/CC
anxiety/NN
have/VBP
their/PRP$
positive/JJ
uses/NNS
,/,
``/``
stress/NN
perceived/VBN
to/TO
be/VB
threatening/JJ
implies/VBZ
a/DT
component/NN
of/IN
fear/NN
and/CC
anxiety/NN
that/WDT
may/MD
contribute/VB
to/TO
burnout/NN
./.
''/''
He/PRP
also/RB
noted/VBD
that/DT
various/JJ
work/NN
environments/NNS
,/,
such/JJ
as/IN
night/NN
work/NN
,/,
have/VBP
their/PRP$
own/JJ
``/``
stressors/NNS
./.
''/''
``/``
We/PRP
all/DT
like/VBP
stress/NN
,/,
but/CC
there/EX
's/VBZ
a/DT
limit/NN
,/,
''/''
says/VBZ
Paul/NNP
D'Arcy/NNP
,/,
of/IN
Rohrer/NNP
,/,
Hibler/NNP
&/CC
Replogle/NNP
,/,
a/DT
corporate/JJ
psychology/NN
and/CC
management/NN
consulting/NN
firm/NN
./.
The/DT
problem/NN
,/,
says/VBZ
Mr./NNP
D'Arcy/NNP
,/,
a/DT
psychologist/NN
,/,
is/VBZ
that/IN
``/``
it/PRP
's/VBZ
very/RB
hard/JJ
to/TO
get/VB
any/DT
hard/JJ
measures/NNS
on/IN
how/WRB
stress/NN
affects/VBZ
job/NN
performance/NN
./.
''/''
For/IN
Cheap/JJ
Air/NN
Fares/NNS
,/,
Spend/VB
Christmas/NNP
Aloft/JJ
IT/PRP
IS/VBZ
N'T/RB
TRUE/JJ
that/IN
a/DT
90-year/JJ
old/JJ
clergyman/NN
on/IN
a/DT
mission/NN
of/IN
mercy/NN
to/TO
a/DT
disaster/NN
area/NN
on/IN
Christmas/NNP
Day/NNP
can/MD
fly/VB
free/JJ
./.
But/CC
his/PRP$
circumstances/NNS
are/VBP
among/IN
the/DT
few/JJ
that/WDT
can/MD
qualify/VB
for/IN
the/DT
handful/NN
of/IN
really/RB
cheap/JJ
airline/NN
tickets/NNS
remaining/VBG
in/IN
America/NNP
./.
In/IN
recent/JJ
years/NNS
,/,
carriers/NNS
have/VBP
become/VBN
much/RB
more/RBR
picky/JJ
about/IN
who/WP
can/MD
fly/VB
on/IN
the/DT
cheap/NN
./.
But/CC
there/EX
still/RB
are/VBP
a/DT
few/JJ
ways/NNS
today/NN
's/POS
traveler/NN
can/MD
qualify/VB
under/IN
the/DT
airline/NN
's/POS
many/JJ
restrictions/NNS
./.
One/CD
of/IN
the/DT
best/JJS
deals/NNS
,/,
though/RB
,/,
may/MD
mean/VB
skipping/VBG
Christmas/NNP
dinner/NN
with/IN
the/DT
relatives/NNS
./.
This/DT
week/NN
,/,
many/JJ
carriers/NNS
are/VBP
announcing/VBG
cut-rate/JJ
fares/NNS
designed/VBN
to/TO
get/VB
people/NNS
to/TO
fly/VB
on/IN
some/DT
of/IN
the/DT
most/RBS
hallowed/JJ
--/:
and/CC
slowest/JJS
--/:
days/NNS
of/IN
the/DT
year/NN
,/,
including/VBG
Christmas/NNP
./.
In/IN
recent/JJ
years/NNS
,/,
the/DT
airlines/NNS
had/VBD
waited/VBN
until/IN
the/DT
last/JJ
moment/NN
to/TO
court/VB
Christmas/NNP
season/NN
vacationers/NNS
with/IN
bargain/NN
fares/NNS
./.
That/DT
approach/NN
flopped/VBD
:/:
Last/JJ
Christmas/NNP
Day/NNP
,/,
a/DT
USAir/NNP
Group/NNP
Inc./NNP
DC-9/NNP
jetliner/NN
flew/VBD
about/RB
seven/CD
passengers/NNS
from/IN
Chicago/NNP
to/TO
Pittsburgh/NNP
./.
So/RB
this/DT
year/NN
,/,
the/DT
airlines/NNS
are/VBP
getting/VBG
a/DT
jump/NN
on/IN
holiday/NN
discounts/NNS
./.
They/PRP
are/VBP
cutting/VBG
ticket/NN
prices/NNS
by/IN
as/RB
much/JJ
as/IN
70/CD
%/NN
from/IN
normal/JJ
levels/NNS
for/IN
travel/NN
to/TO
most/JJS
U.S./NNP
locations/NNS
on/IN
Dec./NNP
24/CD
,/,
25/CD
,/,
29/CD
,/,
30/CD
and/CC
31/CD
,/,
and/CC
Jan./NNP
4/CD
,/,
5/CD
and/CC
6/CD
./.
The/DT
promotions/NNS
--/:
dubbed/VBD
everything/NN
from/IN
'T-/PRP
is/VBZ
the/DT
Season/NN
to/TO
be/VB
Jolly/JJ
to/TO
Kringle/NNP
fares/NNS
--/:
put/VBP
round-trip/JJ
fares/NNS
at/IN
$/$
98/CD
,/,
$/$
148/CD
and/CC
$/$
198/CD
./.
``/``
They/PRP
're/VBP
trying/VBG
to/TO
keep/VB
planes/NNS
flying/VBG
on/IN
days/NNS
they/PRP
'd/MD
normally/RB
park/VB
them/PRP
,/,
''/''
says/VBZ
Roger/NNP
Bard/NNP
,/,
president/NN
of/IN
Mr./NNP
Mitchell/NNP
Travel/NNP
Service/NNP
in/IN
Burnsville/NNP
,/,
N.C/NNP
./.
Expect/VB
,/,
of/IN
course/NN
,/,
sky-high/JJ
prices/NNS
on/IN
other/JJ
dates/NNS
near/IN
the/DT
holidays/NNS
when/WRB
the/DT
airlines/NNS
know/VBP
vacationers/NNS
are/VBP
eager/JJ
to/TO
travel/VB
./.
Consider/VB
Adopting/VBG
Your/PRP$
Spouse/NN
's/POS
Name/NN
IF/IN
CONTINENTAL/NNP
Airlines/NNP
has/VBZ
its/PRP$
way/NN
,/,
couples/NNS
like/IN
Marlo/NNP
Thomas/NNP
and/CC
Phil/NNP
Donahue/NNP
may/MD
find/VB
it/PRP
a/DT
hassle/NN
to/TO
qualify/VB
for/IN
some/DT
new/JJ
discounts/NNS
./.
Continental/NNP
,/,
a/DT
Texas/NNP
Air/NNP
Corp./NNP
unit/NN
,/,
recently/RB
unveiled/VBD
a/DT
marketing/VBG
program/NN
offering/VBG
free/JJ
companion/NN
tickets/NNS
to/TO
business-class/JJ
and/CC
first-class/JJ
passengers/NNS
on/IN
international/JJ
flights/NNS
./.
The/DT
Continental/NNP
catch/NN
:/:
Only/RB
immediate/JJ
family/NN
members/NNS
are/VBP
allowed/VBN
,/,
and/CC
they/PRP
must/MD
have/VB
the/DT
same/JJ
last/JJ
name/NN
as/IN
the/DT
buyer/NN
of/IN
the/DT
ticket/NN
or/CC
legal/JJ
proof/NN
they/PRP
're/VBP
related/VBN
./.
That/DT
irritates/VBZ
many/JJ
women/NNS
who/WP
have/VBP
n't/RB
taken/VBN
their/PRP$
husbands/NNS
'/POS
last/JJ
name/NN
./.
``/``
What/WP
a/DT
bunch/NN
of/IN
nonsense/NN
,/,
''/''
says/VBZ
Jessica/NNP
Crosby/NNP
,/,
president/NN
of/IN
the/DT
New/NNP
York/NNP
chapter/NN
of/IN
the/DT
National/NNP
Association/NNP
of/IN
Women/NNP
Business/NNP
Owners/NNP
./.
``/``
This/DT
sets/VBZ
things/NNS
way/RB
back/RB
./.
''/''
Continental/NNP
's/POS
logic/NN
:/:
It/PRP
does/VBZ
n't/RB
want/VB
business/NN
companions/NNS
abusing/VBG
the/DT
promotion/NN
by/IN
falsely/RB
claiming/VBG
to/TO
be/VB
related/VBN
./.
``/``
We/PRP
accommodate/VBP
their/PRP$
choice/NN
of/IN
names/NNS
by/IN
allowing/VBG
them/PRP
to/TO
demonstrate/VB
''/''
family/NN
affiliation/NN
with/IN
legal/JJ
documents/NNS
,/,
says/VBZ
Jim/NNP
O'Donnell/NNP
,/,
a/DT
senior/JJ
vice/NN
president/NN
./.
But/CC
gay/JJ
rights/NNS
advocates/NNS
are/VBP
angry/JJ
,/,
too/RB
./.
The/DT
Lambda/NNP
Legal/NNP
Defense/NNP
and/CC
Education/NNP
Fund/NNP
of/IN
New/NNP
York/NNP
City/NNP
has/VBZ
received/VBN
complaints/NNS
from/IN
homosexual/JJ
couples/NNS
whom/WP
the/DT
airline/NN
does/VBZ
n't/RB
recognize/VB
as/IN
family/NN
./.
``/``
It/PRP
's/VBZ
certainly/RB
discrimination/NN
,/,
''/''
says/VBZ
attorney/NN
Evan/NNP
Wolfson/NNP
,/,
whose/WP$
group/NN
forced/VBD
Trans/NNP
World/NNP
Airlines/NNP
this/DT
year/NN
to/TO
change/VB
a/DT
rule/NN
that/WDT
allowed/VBD
travelers/NNS
to/TO
transfer/VB
frequent/JJ
flier/NN
awards/NNS
only/RB

to/TO
family/NN
members/NNS
./.
Take/VB
Your/PRP$
Vacation/NN
In/IN
a/DT
Hurricane/NN
Area/NN
WHEN/WRB
HURRICANE/NNP
Hugo/NNP
careened/VBD
through/IN
the/DT
Caribbean/NNP
and/CC
the/DT
Atlantic/NNP
coast/NN
states/NNS
,/,
it/PRP
downed/VBD
electric/JJ
and/CC
telephone/NN
lines/NNS
,/,
shot/VBD
coconuts/NNS
through/IN
cottage/NN
rooftops/NNS
,/,
shattered/VBD
windows/NNS
and/CC
uprooted/VBD
thousands/NNS
of/IN
lives/NNS
./.
It/PRP
also/RB
lowered/VBD
some/DT
air/NN
fares/NNS
./.
Since/IN
the/DT
hurricane/NN
,/,
Midway/NNP
Airlines/NNP
Inc./NNP
and/CC
American/NNP
Airlines/NNP
,/,
a/DT
unit/NN
of/IN
AMR/NNP
Corp./NNP
,/,
trimmed/VBD
their/PRP$
one-way/JJ
fares/NNS
to/TO
the/DT
Virgin/NNP
Islands/NNP
to/TO
$/$
109/CD
from/IN
prices/NNS
that/WDT
were/VBD
at/IN
times/NNS
double/RB
that/DT
before/IN
the/DT
storm/NN
./.
The/DT
fares/NNS
are/VBP
code-named/NNP
Hugo/NNP
,/,
Compassion/NNP
and/CC
Virgin/NNP
Islands/NNP
Aid/NNP
./.
Airlines/NNS
are/VBP
n't/RB
lowering/VBG
fares/NNS
to/TO
Northern/NNP
California/NNP
following/VBG
this/DT
week/NN
's/POS
earthquake/NN
,/,
but/CC
reservation/NN
agents/NNS
can/MD
waive/VB
advance-purchase/JJ
restrictions/NNS
on/IN
discount/NN
fares/NNS
for/IN
emergency/NN
trips/NNS
./.
Some/DT
hotels/NNS
in/IN
the/DT
hurricane-stricken/JJ
Caribbean/NNP
promise/VBP
money-back/JJ
guarantees/NNS
./.
In/IN
Myrtle/NNP
Beach/NNP
,/,
S.C./NNP
,/,
the/DT
damaged/VBN
Yachtsman/NNP
Resort/NNP
offers/VBZ
daily/JJ
rates/NNS
as/RB
low/JJ
as/IN
$/$
35/CD
,/,
or/CC
as/RB
much/JJ
as/IN
22/CD
%/NN
below/IN
regular/JJ
prices/NNS
./.
Says/VBZ
Michele/NNP
Hoffman/NNP
,/,
a/DT
clerk/NN
in/IN
the/DT
resort/NN
's/POS
front/JJ
office/NN
:/:
``/``
We/PRP
do/VBP
n't/RB
have/VB
the/DT
outdoor/JJ
pool/NN
,/,
the/DT
pool/NN
table/NN
,/,
ping/NN
pong/NN
table/NN
,/,
snack/NN
bar/NN
or/CC
VCR/NNP
,/,
but/CC
we/PRP
still/RB
have/VBP
the/DT
indoor/JJ
pool/NN
and/CC
Jacuzzi/NN
./.
''/''
Just/RB
Wait/VB
Until/IN
You/PRP
're/VBP
a/DT
Bit/NN
Older/JJR
SENIOR/JJ
CITIZENS/NNS
have/VBP
long/RB
received/VBN
cheap/JJ
air/NN
fares/NNS
./.
This/DT
year/NN
,/,
the/DT
older/JJR
someone/NN
is/VBZ
the/DT
bigger/JJR
the/DT
discount/NN
./.
A/DT
senior/JJ
citizen/NN
between/IN
62/CD
and/CC
70/CD
saves/VBZ
70/CD
%/NN
off/IN
regular/JJ
coach/NN
fare/NN
./.
Travelers/NNS
up/IN
to/TO
age/NN
99/CD
get/VBP
a/DT
percentage/NN
discount/NN
matching/VBG
their/PRP$
age/NN
./.
And/CC
centenarians/NNS
fly/VBP
free/JJ
in/IN
first/JJ
class/NN
./.
Next/JJ
month/NN
,/,
Northwest/NNP
Airlines/NNP
says/VBZ
,/,
a/DT
108-year-old/JJ
Lansing/NNP
,/,
Mich./NNP
,/,
woman/NN
is/VBZ
taking/VBG
it/PRP
up/RP
on/IN
the/DT
offer/NN
to/TO
fly/VB
with/IN
her/PRP$
72-year-old/JJ
son/NN
to/TO
Tampa/NNP
,/,
Fla/NNP
./.
Last/JJ
year/NN
when/WRB
Northwest/NNP
first/RB
offered/VBD
the/DT
promotion/NN
,/,
only/RB
six/CD
centenarians/NNS
flew/VBD
free/JJ
./.
If/IN
All/DT
Else/RB
Fails/VBZ
.../:
./.
THE/DT
NATION'S/NN
carriers/NNS
also/RB
provide/VBP
discounts/NNS
to/TO
Red/NNP
Cross/NNP
workers/NNS
,/,
retired/VBN
military/JJ
personnel/NNS
and/CC
medical/JJ
students/NNS
./.
There/EX
's/VBZ
even/RB
a/DT
special/JJ
fare/NN
for/IN
clergy/NNS
that/WDT
does/VBZ
n't/RB
require/VB
the/DT
usual/JJ
stay/NN
over/IN
Saturday/NNP
night/NN
./.
That/DT
way/NN
,/,
they/PRP
can/MD
be/VB
home/NN
in/IN
time/NN
for/IN
work/NN
Sunday/NNP
./.
The/DT
British/NNP
Petroleum/NNP
Co./NNP
PLC/NNP
said/VBD
its/PRP$
BP/NNP
Exploration/NNP
unit/NN
has/VBZ
produced/VBN
the/DT
first/JJ
oil/NN
from/IN
its/PRP$
Don/NNP
oilfield/NN
in/IN
the/DT
North/NNP
Sea/NNP
./.
In/IN
an/DT
official/JJ
release/NN
,/,
BP/NNP
said/VBD
initial/JJ
production/NN
from/IN
the/DT
field/NN
was/VBD
11,000/CD
barrels/NNS
a/DT
day/NN
,/,
and/CC
that/IN
it/PRP
expects/VBZ
peak/JJ
output/NN
from/IN
the/DT
field/NN
of/IN
15,000/CD
barrels/NNS
a/DT
day/NN
to/TO
be/VB
reached/VBN
in/IN
1990/CD
./.
As/IN
the/DT
sponsor/NN
of/IN
the/DT
``/``
Older/NNP
Americans/NNP
Freedom/NNP
to/TO
Work/NNP
Act/NNP
,/,
''/''
which/WDT
would/MD
repeal/VB
the/DT
Social/NNP
Security/NNP
earnings/NNS
limit/NN
for/IN
people/NNS
aged/VBN
65/CD
and/CC
older/JJR
,/,
I/PRP
applaud/VBP
your/PRP$
strong/JJ
endorsement/NN
to/TO
repeal/VB
this/DT
Depression-era/JJ
fossil/NN
./.
For/IN
every/DT
dollar/NN
earned/VBN
over/IN
$/$
8,880/CD
,/,
Social/NNP
Security/NNP
recipients/NNS
lose/VBP
50/CD
cents/NNS
of/IN
their/PRP$
Social/NNP
Security/NNP
benefits/NNS
;/:
it/PRP
's/POS
like/IN
a/DT
50/CD
%/NN
marginal/JJ
tax/NN
./.
But/CC
the/DT
compounded/VBN
effects/NNS
of/IN
``/``
seniors/NNS
only/RB
''/''
taxes/NNS
result/VBP
in/IN
truly/RB
catastrophic/JJ
marginal/JJ
tax/NN
rates/NNS
./.
Imagine/VB
a/DT
widow/NN
who/WP
wants/VBZ
to/TO
maintain/VB
her/PRP$
standard/NN
of/IN
living/NN
at/IN
the/DT
same/JJ
level/NN
she/PRP
had/VBD
before/IN
she/PRP
had/VBD
to/TO
pay/VB
the/DT
catastrophic/JJ
surtax/NN
./.
Although/IN
this/DT
widow/NN
earns/VBZ
only/RB
twice/RB
the/DT
minimum/NN
wage/NN
,/,
largely/RB
due/JJ
to/TO
the/DT
earnings/NNS
limit/NN
,/,
she/PRP
would/MD
have/VB
to/TO
earn/VB
an/DT
additional/JJ
$/$
4,930/CD
to/TO
offset/VB
her/PRP$
catastrophic/JJ
surtax/NN
of/IN
$/$
496/CD
./.
Eliminating/VBG
the/DT
earnings/NNS
limit/NN
would/MD
greatly/RB
help/VB
seniors/NNS
and/CC
reduce/VB
the/DT
deficit/NN
./.
Repeal/NN
would/MD
generate/VB
more/JJR
in/IN
new/JJ
taxes/NNS
than/IN
the/DT
government/NN
would/MD
lose/VB
in/IN
increased/VBN
Social/NNP
Security/NNP
benefit/NN
payments/NNS
./.
We/PRP
now/RB
need/VBP
support/NN
from/IN
the/DT
Democrats/NNS
on/IN
the/DT
Rules/NNP
Committee/NNP
in/IN
order/NN
to/TO
include/VB
earnings-limit/JJ
reform/NN
in/IN
the/DT
Reconciliation/NNP
Bill/NNP
./.
Since/IN
all/DT
four/CD
Republicans/NNP
on/IN
the/DT
committee/NN
are/VBP
co-sponsors/NNS
of/IN
my/PRP$
bill/NN
,/,
it/PRP
is/VBZ
the/DT
Democrats/NNS
who/WP
will/MD
be/VB
held/VBN
fully/RB
accountable/JJ
if/IN
an/DT
earnings/NNS
test/NN
amendment/NN
is/VBZ
not/RB
allowed/VBN
from/IN
the/DT
floor/NN
./.
The/DT
time/NN
is/VBZ
now/RB
to/TO
lift/VB
the/DT
burdensome/JJ
Social/NNP
Security/NNP
earnings/NNS
limit/NN
from/IN
the/DT
backs/NNS
of/IN
our/PRP$
nation/NN
's/POS
seniors/NNS
./.
Rep./NNP
J./NNP
Dennis/NNP
Hastert/NNP
R./NNP
,/,
Ill/NNP
./.
Washington/NNP
When/WRB
his/PRP$
Seventh/NNP
Avenue/NNP
fur/NN
business/NN
here/RB
was/VBD
flying/VBG
high/JJ
20/CD
years/NNS
ago/RB
,/,
Jack/NNP
Purnick/NNP
had/VBD
25/CD
workers/NNS
and/CC
a/DT
large/JJ
factory/NN
./.
Now/RB
his/PRP$
half-dozen/NN
employees/NNS
work/VBP
in/IN
an/DT
eighth-floor/JJ
shop/NN
that/IN
he/PRP
says/VBZ
is/VBZ
smaller/JJR
than/IN
his/PRP$
old/JJ
storage/NN
room/NN
./.
He/PRP
also/RB
says/VBZ
he/PRP
is/VBZ
losing/VBG
money/NN
now/RB
./.
He/PRP
blames/VBZ
imports/NNS
./.
But/CC
just/RB
down/IN
Seventh/NNP
Avenue/NNP
,/,
where/WRB
about/RB
75/CD
%/NN
of/IN
U.S./NNP
fur/NN
garments/NNS
are/VBP
made/VBN
,/,
Larry/NNP
Rosen/NNP
has/VBZ
acquired/VBN
two/CD
retail/JJ
outlets/NNS
,/,
broadened/VBN
his/PRP$
fur-making/JJ
line/NN
and/CC
expanded/VBN
into/IN
leather/NN
./.
He/PRP
credits/VBZ
imports/NNS
./.
The/DT
difference/NN
lies/VBZ
in/IN
how/WRB
the/DT
two/CD
entrepreneurial/JJ
furriers/NNS
reacted/VBD
to/TO
the/DT
foreign/JJ
competition/NN
and/CC
transformation/NN
of/IN
their/PRP$
industry/NN
over/IN
the/DT
past/JJ
10/CD
years/NNS
./.
One/CD
stuck/VBD
to/TO
old-line/JJ
business/NN
traditions/NNS
,/,
while/IN
the/DT
other/JJ
embraced/VBD
the/DT
change/NN
./.
``/``
The/DT
small/JJ
,/,
good/JJ
fur/NN
salon/NN
is/VBZ
not/RB
what/WP
it/PRP
used/VBD
to/TO
be/VB
,/,
''/''
says/VBZ
Mr./NNP
Purnick/NNP
,/,
75/CD
years/NNS
old/JJ
./.
``/``
We/PRP
make/VBP
the/DT
finest/JJS
product/NN
in/IN
the/DT
world/NN
,/,
and/CC
the/DT
Americans/NNS
are/VBP
being/VBG
kicked/VBD
around/RP
./.
''/''
Mr./NNP
Rosen/NNP
,/,
though/RB
,/,
believes/VBZ
imports/NNS
have/VBP
reinvigorated/VBN
the/DT
industry/NN
in/IN
which/WDT
he/PRP
has/VBZ
worked/VBN
for/IN
most/JJS
of/IN
his/PRP$
57/CD
years/NNS
./.
``/``
You/PRP
've/VBP
got/VBD
some/DT
minds/NNS
here/RB
that/WDT
wo/MD
n't/RB
think/VB
progressively/RB
,/,
''/''
he/PRP
says/VBZ
./.
Import/NN
competition/NN
for/IN
U.S./NNP
furs/NNS
has/VBZ
risen/VBN
sharply/RB
since/IN
furriers/NNS
started/VBD
aggressively/RB
marketing/VBG
``/``
working-girl/NN
mink/NN
''/''
and/CC
similar/JJ
lower-priced/JJ
imported/VBN
furs/NNS
in/IN
recent/JJ
years/NNS
./.
Merchants/NNS
discovered/VBD
a/DT
consumer/NN
largely/RB
ignored/VBN
by/IN
higher-priced/JJ
furriers/NNS
:/:
the/DT
younger/JJR
woman/NN
--/:
even/RB
in/IN
her/PRP$
late/JJ
20s/NNS
--/:
who/WP
never/RB
thought/VBD
she/PRP
could/MD
buy/VB
a/DT
mink/NN
./.
The/DT
new/JJ
market/NN
helped/VBD
boost/VB
U.S./NNP
fur/NN
sales/NNS
to/TO
about/RB
$/$
1.8/CD
billion/CD
a/DT
year/NN
now/RB
,/,
triple/JJ
the/DT
level/NN
in/IN
the/DT
late/JJ
1970s/NNS
./.
It/PRP
also/RB
opened/VBD
the/DT
door/NN
to/TO
furs/NNS
made/VBN
in/IN
South/NNP
Korea/NNP
,/,
China/NNP
,/,
Hong/NNP
Kong/NNP
and/CC
other/JJ
countries/NNS
./.
Jindo/NNP
Furs/NNP
,/,
a/DT
large/JJ
South/JJ
Korean/JJ
maker/NN
,/,
says/VBZ
it/PRP
operates/VBZ
35/CD
retail/JJ
outlets/NNS
in/IN
the/DT
U.S./NNP
and/CC
plans/VBZ
to/TO
open/VB
15/CD
more/JJR
by/IN
the/DT
end/NN
of/IN
next/JJ
year/NN
./.
Mr./NNP
Purnick/NNP
and/CC
other/JJ
old-line/JJ
furriers/NNS
call/VBP
many/JJ
of/IN
the/DT
the/DT
imports/NNS
unstylish/JJ
and/CC
poorly/RB
made/VBN
./.
High-end/JJ
U.S./NNP
furriers/NNS
say/VBP
these/DT
imports/NNS
have/VBP
n't/RB
squeezed/VBN
them/PRP
./.
But/CC
low-priced/JJ
and/CC
middle-priced/JJ
furriers/NNS
like/IN
Mr./NNP
Purnick/NNP
,/,
who/WP
once/RB
saturated/VBD
the/DT
five-block/JJ
Seventh/NNP
Avenue/NNP
fur/NN
district/NN
,/,
say/VBP
imports/NNS
have/VBP
cut/VBN
their/PRP$
sales/NNS
./.
A/DT
woman/NN
who/WP
once/RB
would/MD
have/VB
saved/VBN
for/IN
two/CD
or/CC
three/CD
seasons/NNS
to/TO
buy/VB
a/DT
U.S.-made/JJ
mink/NN
can/MD
now/RB
get/VB
an/DT
imported/VBN
mink/NN
right/RB
away/RB
for/IN
less/JJR
than/IN
$/$
2,000/CD
./.
Yet/CC
Mr./NNP
Rosen/NNP
has/VBZ
turned/VBN
the/DT
import/NN
phenomenon/NN
to/TO
his/PRP$
advantage/NN
./.
Early/RB
in/IN
the/DT
decade/NN
he/PRP
saw/VBD
that/IN
fur/NN
workers/NNS
in/IN
many/JJ
foreign/JJ
countries/NNS
were/VBD
willing/JJ
to/TO
work/VB
longer/JJR
hours/NNS
at/IN
lower/JJR
wages/NNS
than/IN
their/PRP$
American/JJ
counterparts/NNS
and/CC
were/VBD
more/RBR
open/JJ
to/TO
innovation/NN
./.
In/IN
1982/CD
,/,
he/PRP
started/VBD
a/DT
factory/NN
in/IN
Greece/NNP
./.
Two/CD
years/NNS
later/RBR
,/,
he/PRP
opened/VBD
one/CD
in/IN
West/NNP
Germany/NNP
./.
He/PRP
also/RB
noticed/VBD
that/IN
foreign/JJ
makers/NNS
were/VBD
introducing/VBG
many/JJ
variations/NNS
on/IN
the/DT
traditional/JJ
fur/NN
,/,
and/CC
he/PRP
decided/VBD
to/TO
follow/VB
suit/NN
./.
By/IN
combining/VBG
his/PRP$
strengths/NNS
in/IN
innovation/NN
and/CC
quality/NN
control/NN
with/IN
the/DT
lower/JJR
costs/NNS
of/IN
production/NN
abroad/RB
,/,
he/PRP
says/VBZ
he/PRP
has/VBZ
been/VBN
able/JJ
to/TO
produce/VB
high-quality/JJ
goods/NNS
at/IN
low/JJ
cost/NN
./.
To/TO
maintain/VB
control/NN
over/IN
production/NN
and/CC
avoid/VB
overdependence/NN
on/IN
foreign/JJ
sources/NNS
,/,
he/PRP
says/VBZ
he/PRP
still/RB
makes/VBZ
most/JJS
of/IN
his/PRP$
furs/NNS
in/IN
the/DT
U.S/NNP
./.
But/CC
six/CD
years/NNS
ago/RB
he/PRP
also/RB
began/VBD
importing/VBG
from/IN
the/DT
Far/NNP
East/NNP
./.
Inspired/VBN
by/IN
imports/NNS
,/,
Mr./NNP
Rosen/NNP
now/RB
makes/VBZ
fur/NN
muffs/NNS
,/,
hats/NNS
and/CC
flings/NNS
./.
This/DT
year/NN
he/PRP
produced/VBD
a/DT
men/NNS
's/POS
line/NN
and/CC
offers/VBZ
dyed/VBN
furs/NNS
in/IN
red/NN
,/,
cherry/NN
red/JJ
,/,
violet/NN
,/,
royal/NN
blue/NN
and/CC
forest/NN
green/NN
./.
He/PRP
has/VBZ
leather/NN
jackets/NNS
from/IN
Turkey/NNP
that/WDT
are/VBP
lined/VBN
with/IN
eel/NN
skin/NN
and/CC
topped/VBD
off/RP
with/IN
raccoon-skin/JJ
collars/NNS
./.
From/IN
Asia/NNP
,/,
he/PRP
has/VBZ
mink/NN
jackets/NNS
with/IN
floral/JJ
patterns/NNS
made/VBN
by/IN
using/VBG
different/JJ
colored/VBN
furs/NNS
./.
Next/JJ
he/PRP
will/MD
be/VB
testing/VBG
pictured/VBN
embroidery/NN
kalega/NN
the/DT
Far/NNP
East/NNP
./.
He/PRP
plans/VBZ
to/TO
attach/VB
the/DT
embroidery/NN
to/TO
the/DT
backs/NNS
of/IN
mink/NN
coats/NNS
and/CC
jackets/NNS
./.
Besides/IN
adding/VBG
to/TO
sales/NNS
,/,
leathers/NNS
also/RB
attract/VBP
retailers/NNS
who/WP
may/MD
buy/VB
furs/NNS
later/RBR
,/,
he/PRP
adds/VBZ
./.
Other/JJ
furriers/NNS
have/VBP
also/RB
benefited/VBN
from/IN
leathers/NNS
./.
Seymour/NNP
Schreibman/NNP
,/,
the/DT
65-year-old/JJ
owner/NN
of/IN
Schreibman/NNP
Raphael/NNP
Furs/NNP
Inc./NNP
,/,
treats/VBZ
the/DT
reverse/JJ
side/NN
of/IN
a/DT
Persian/JJ
lambskin/NN
to/TO
produce/VB
a/DT
reversible/JJ
fur-and-leather/JJ
garment/NN
./.
He/PRP
says/VBZ
it/PRP
accounts/VBZ
for/IN
25/CD
%/NN
of/IN
total/JJ
sales/NNS
./.
Mr./NNP
Rosen/NNP
is/VBZ
also/RB
pushing/VBG
retail/JJ
sales/NNS
./.
This/DT
year/NN
he/PRP
bought/VBD
two/CD
stores/NNS
,/,
one/CD
in/IN
Brooklyn/NNP
and/CC
one/CD
in/IN
Queens/NNP
./.
Other/JJ
furriers/NNS
have/VBP
also/RB
placed/VBN
more/JJR
weight/NN
on/IN
retailing/NN
./.
Golden/NNP
Feldman/NNP
Furs/NNP
Inc./NNP
began/VBD
retailing/VBG
aggressively/RB
eight/CD
years/NNS
ago/RB
,/,
and/CC
now/RB
retail/JJ
sales/NNS
account/VBP
for/IN
about/RB
20/CD
%/NN
of/IN
gross/JJ
income/NN
./.
In/IN
other/JJ
moves/NNS
,/,
Mr./NNP
Rosen/NNP
says/VBZ
he/PRP
bought/VBD
a/DT
truck/NN
three/CD
years/NNS
ago/RB
to/TO
reach/VB
more/JJR
retailers/NNS
./.
Since/IN
then/RB
he/PRP
has/VBZ
expanded/VBN
his/PRP$
fleet/NN
and/CC
can/MD
now/RB
bring/VB
his/PRP$
furs/NNS
to/TO
the/DT
front/JJ
door/NN
of/IN
retailers/NNS
as/IN
far/RB
away/RB
as/IN
the/DT
Midwest/JJS
./.
Small/JJ
retailers/NNS
who/WP
ca/MD
n't/RB
afford/VB
to/TO
travel/VB
to/TO
his/PRP$
New/NNP
York/NNP
showroom/NN
have/VBP
become/VBN
fair/JJ
game/NN
./.
Such/JJ
moves/NNS
have/VBP
helped/VBN
Mr./NNP
Rosen/NNP
weather/VB
the/DT
industry/NN
slump/NN
of/IN
recent/JJ
years/NNS
./.
The/DT
industry/NN
enjoyed/VBD
six/CD
prosperous/JJ
years/NNS
beginning/VBG
in/IN
1980/CD
,/,
but/CC
since/IN
1986/CD
sales/NNS
have/VBP
languished/VBN
at/IN
their/PRP$
$/$
1.8/CD
billion/CD
peak/NN
./.
Large/JJ
furriers/NNS
such/JJ
as/IN
Antonovich/NNP
Inc./NNP
,/,
Fur/NNP
Vault/NNP
Inc./NNP
and/CC
Evans/NNP
Inc./NNP
all/DT
reported/VBD
losses/NNS
in/IN
their/PRP$
latest/JJS
fiscal/JJ
years/NNS
./.
Aftereffects/NNS
of/IN
the/DT
1987/CD
stock/NN
market/NN
crash/NN
head/VBP
the/DT
list/NN
of/IN
reasons/NNS
./.
In/IN
addition/NN
,/,
competition/NN
has/VBZ
glutted/VBN
the/DT
market/NN
with/IN
both/DT
skins/NNS
and/CC
coats/NNS
,/,
driving/VBG
prices/NNS
down/RB
./.
The/DT
animal-rights/JJ
movement/NN
has/VBZ
n't/RB
helped/VBD
sales/NNS
./.
Warm/JJ
winters/NNS
over/IN
the/DT
past/JJ
two/CD
years/NNS
have/VBP
trimmed/VBN
demand/NN
,/,
too/RB
,/,
furriers/NNS
complain/VBP
./.
And/CC
those/DT
who/WP
did/VBD
n't/RB
move/VB
some/DT
production/NN
overseas/RB
suffer/VBP
labor/NN
shortages/NNS
./.
``/``
The/DT
intensive/JJ
labor/NN
needed/VBN
to/TO
manufacture/VB
furs/NNS
the/DT
U.S/NNP
./.
it/PRP
was/VBD
,/,
''/''
says/VBZ
Mr./NNP
Schreibman/NNP
,/,
who/WP
is/VBZ
starting/VBG
overseas/JJ
production/NN
./.
But/CC
even/RB
those/DT
who/WP
have/VBP
found/VBN
a/DT
way/NN
to/TO
cope/VB
with/IN
the/DT
imports/NNS
and/CC
the/DT
slump/NN
,/,
fear/VBP
that/IN
furs/NNS
are/VBP
losing/VBG
part/NN
of/IN
their/PRP$
allure/NN
./.
``/``
People/NNS
are/VBP
promoting/VBG
furs/NNS
in/IN
various/JJ
ways/NNS
and/CC
taking/VBG
the/DT
glamour/NN
out/IN
of/IN
the/DT
fur/NN
business/NN
,/,
''/''
says/VBZ
Stephen/NNP
Sanders/NNP
,/,
divisional/JJ
merchandise/NN
manager/NN
for/IN
Marshall/NNP
Field/NNP
's/POS
department/NN
store/NN
in/IN
Chicago/NNP
./.
``/``
You/PRP
ca/MD
n't/RB
make/VB
a/DT
commodity/NN
out/IN
of/IN
a/DT
luxury/NN
,/,
''/''
insists/VBZ
Mr./NNP
Purnick/NNP
,/,
the/DT
New/NNP
York/NNP
furrier/NN
./.
He/PRP
contends/VBZ
that/IN
chasing/VBG
consumers/NNS
with/IN
low-priced/JJ
imports/NNS
will/MD
harm/VB
the/DT
industry/NN
in/IN
the/DT
long/JJ
run/NN
by/IN
reducing/VBG
the/DT
prestige/NN
of/IN
furs/NNS
./.
But/CC
Mr./NNP
Rosen/NNP
responds/VBZ
:/:
``/``
Whatever/WDT
people/NNS
want/VBP
to/TO
buy/VB
,/,
I/PRP
'll/MD
sell/VB
./.
The/DT
name/NN
of/IN
the/DT
game/NN
is/VBZ
to/TO
move/VB
goods/NNS
./.
''/''
Four/CD
workers/NNS
at/IN
GTE/NNP
Corp./NNP
's/POS
headquarters/NNS
have/VBP
been/VBN
diagnosed/VBN
as/IN
having/VBG
hepatitis/NN
,/,
and/CC
city/NN
health/NN
officials/NNS
are/VBP
investigating/VBG
whether/IN
a/DT
cafeteria/NN
worker/NN
may/MD
have/VB
exposed/VBN
hundreds/NNS
of/IN
other/JJ
GTE/NNP
employees/NNS
to/TO
the/DT
viral/JJ
infection/NN
,/,
company/NN
and/CC
city/NN
officials/NNS
said/VBD
./.
The/DT
four/CD
cases/NNS
were/VBD
all/DT
reported/VBN
to/TO
GTE/NNP
's/POS
medical/JJ
director/NN
and/CC
state/NN
and/CC
local/JJ
health/NN
authorities/NNS
./.
GTE/NNP
shut/VBD
down/RP
its/PRP$
cafeteria/NN
Tuesday/NNP
afternoon/NN
after/IN
testing/NN
determined/VBD
that/IN
at/IN
least/JJS
one/CD
cafeteria/NN
worker/NN
employed/VBN
by/IN
GTE/NNP
's/POS
private/JJ
food/NN
vending/VBG
contractor/NN
,/,
ARA/NNP
Services/NNP
Inc./NNP
,/,
was/VBD
suffering/VBG
from/IN
a/DT
strain/NN
of/IN
the/DT
virus/NN
,/,
officials/NNS
said/VBD
./.
More/RBR
than/IN
700/CD
people/NNS
work/VBP
in/IN
the/DT
GTE/NNP
building/NN
./.
The/DT
cafeteria/NN
remains/VBZ
closed/JJ
./.
Dr./NNP
Andrew/NNP
McBride/NNP
,/,
city/NN
health/NN
director/NN
,/,
said/VBD
his/PRP$
staff/NN
suspects/VBZ
the/DT
hepatitis/NN
,/,
which/WDT
can/MD
be/VB
highly/RB
contagious/JJ
,/,
was/VBD
spread/VBN
by/IN
the/DT
cafeteria/NN
worker/NN
with/IN
the/DT
virus/NN
./.
The/DT
exact/JJ
strain/NN
of/IN
hepatitis/NN
that/IN
the/DT
cafeteria/NN
worker/NN
contracted/VBD
has/VBZ
n't/RB
been/VBN
determined/VBN
but/CC
should/MD
be/VB
known/VBN
by/IN
the/DT
end/NN
of/IN
the/DT
week/NN
,/,
Dr./NNP
McBride/NNP
said/VBD
./.
Hepatitis/NNP
A/NNP
,/,
considered/VBN
the/DT
least/JJS
dangerous/JJ
strain/NN
of/IN
the/DT
virus/NN
,/,
has/VBZ
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in/IN
at/IN
least/JJS
one/CD
GTE/NNP
employee/NN
,/,
company/NN
and/CC
city/NN
officials/NNS
said/VBD
./.
``/``
From/IN
a/DT
public/JJ
health/NN
point/NN
of/IN
view/NN
we/PRP
're/VBP
relieved/JJ
because/IN
hepatitis/NNP
A/NNP
is/VBZ
rarely/RB
life-threatening/JJ
,/,
''/''
said/VBD
Dr./NNP
Frank/NNP
Provato/NNP
,/,
GTE/NNP
's/POS
medical/JJ
director/NN
./.
``/``
It/PRP
's/VBZ
a/DT
double-edged/JJ
sword/NN
though/IN
,/,
because/IN
it/PRP
is/VBZ
also/RB
the/DT
most/RBS
contagious/JJ
kind/NN
of/IN
hepatitis/NN
./.
''/''
GTE/NNP
officials/NNS
began/VBD
posting/VBG
warning/NN
notices/NNS
about/IN
the/DT
potential/JJ
threat/NN
to/TO
exposure/NN
Wednesday/NNP
morning/NN
at/IN
various/JJ
places/NNS
at/IN
the/DT
company/NN
,/,
said/VBD
GTE/NNP
spokesman/NN
Thomas/NNP
Mattausch/NNP
./.
The/DT
company/NN
has/VBZ
begun/VBN
offering/VBG
shots/NNS
of/IN
gamma/NN
globulin/NN
,/,
which/WDT
will/MD
diminish/VB
the/DT
flu-like/JJ
symptoms/NNS
of/IN
hepatitis/NNP
A/NNP
,/,
in/IN
anyone/NN
who/WP
has/VBZ
contracted/VBN
the/DT
disease/NN
,/,
Mr./NNP
Mattausch/NNP
said/VBD
./.
``/``
We/PRP
're/VBP
strongly/RB
recommending/VBG
that/IN
anyone/NN
who/WP
has/VBZ
eaten/VBN
in/IN
the/DT
cafeteria/NN
this/DT
month/NN
have/VB
the/DT
shot/NN
,/,
''/''
Mr./NNP
Mattausch/NNP
added/VBD
,/,
``/``
and/CC
that/DT
means/VBZ
virtually/RB
everyone/NN
who/WP
works/VBZ
here/RB
./.
''/''
I/PRP
was/VBD
appalled/VBN
to/TO
read/VB
the/DT
misstatements/NNS
of/IN
facts/NNS
in/IN
your/PRP$
Oct./NNP
13/CD
editorial/NN
``/``
Colombia/NNP
's/POS
Brave/NNP
Publisher/NNP
./.
''/''
It/PRP
is/VBZ
the/DT
right-wing/JJ
guerrillas/NNS
who/WP
are/VBP
aligned/VBN
with/IN
the/DT
drug/NN
traffickers/NNS
,/,
not/RB
the/DT
left/JJ
wing/NN
./.
This/DT
information/NN
was/VBD
gleaned/VBN
from/IN
your/PRP$
own/JJ
news/NN
stories/NNS
on/IN
the/DT
region/NN
./.
Past/JJ
Colombian/JJ
government/NN
tolerance/NN
of/IN
the/DT
``/``
narcotraficantes/FW
''/''
was/VBD
due/JJ
to/TO
the/DT
drug/NN
lords/NNS
'/POS
history/NN
of/IN
wiping/VBG
out/RP
leftists/NNS
in/IN
the/DT
hinterlands/NNS
./.
Mary/NNP
Poulin/NNP
Palo/NNP
Alto/NNP
,/,
Calif./NNP
I/PRP
suggest/VBP
that/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
other/JJ
U.S./NNP
news/NN
publications/NNS
of/IN
like/JJ
mind/NN
its/PRP$
money/NN
where/WRB
its/PRP$
mouth/NN
is/VBZ
:/:
Lend/VB
computer/NN
equipment/NN
to/TO
replace/VB
that/IN
damaged/VBN
at/IN
El/NNP
Espectador/NNP
,/,
buy/VB
ad/NN
space/NN
,/,
publish/VB
stories/NNS
under/IN
the/DT
bylines/NNS
of/IN
El/NNP
Espectador/NNP
journalists/NNS
./.
Perhaps/RB
an/DT
arrangement/NN
could/MD
be/VB
worked/VBN
out/RP
to/TO
``/``
sponsor/VB
''/''
El/NNP
Espectador/NNP
journalists/NNS
and/CC
staff/NN
by/IN
paying/VBG
for/IN
added/VBN
security/NN
in/IN
exchange/NN
for/IN
exclusive/JJ
stories/NNS
./.
Reward/VB
El/NNP
Espectador/NNP
's/POS
courage/NN
with/IN
real/JJ
support/NN
./.
Douglas/NNP
B./NNP
Evans/NNP
San/NNP
Francisco/NNP
COCA-COLA/NNP
Co/NNP
./.
Atlanta/NNP
Anton/NNP
Amon/NNP
and/CC
George/NNP
Gourlay/NNP
were/VBD
elected/VBN
vice/NN
presidents/NNS
of/IN
this/DT
soft-drink/NN
company/NN
./.
Mr./NNP
Amon/NNP
,/,
46/CD
years/NNS
old/JJ
,/,
is/VBZ
the/DT
company/NN
's/POS
director/NN
of/IN
quality/NN
assurance/NN
;/:
most/RBS
recently/RB
,/,
he/PRP
served/VBD
as/IN
vice/NN
president/NN
,/,
operations/NNS
,/,
for/IN
Coca-Cola/NNP
Enterprises/NNP
./.
Mr./NNP
Gourlay/NNP
,/,
48/CD
,/,
is/VBZ
manager/NN
for/IN
corporate/JJ
manufacturing/NN
operations/NNS
;/:
he/PRP
was/VBD
assistant/JJ
vice/NN
president/NN
at/IN
the/DT
company/NN
./.
In/IN
the/DT
wake/NN
of/IN
a/DT
slide/NN
in/IN
sterling/NN
,/,
a/DT
tailspin/NN
in/IN
the/DT
stock/NN
market/NN
,/,
and/CC
a/DT
string/NN
of/IN
problematic/JJ
economic/JJ
indicators/NNS
,/,
British/JJ
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
Nigel/NNP
Lawson/NNP
promised/VBD
gradual/JJ
improvement/NN
in/IN
the/DT
U.K./NNP
economy/NN
./.
In/IN
a/DT
speech/NN
prepared/VBN
for/IN
delivery/NN
to/TO
London/NNP
's/POS
financial/JJ
community/NN
,/,
Mr./NNP
Lawson/NNP
summed/VBD
up/RP
current/JJ
economic/JJ
policy/NN
as/IN
a/DT
battle/NN
to/TO
wring/VB
inflation/NN
out/IN
of/IN
the/DT
British/JJ
economy/NN
,/,
using/VBG
high/JJ
interest/NN
rates/NNS
as/IN
``/``
the/DT
essential/JJ
instrument/NN
''/''
to/TO
carry/VB
out/RP
the/DT
campaign/NN
./.
Two/CD
weeks/NNS
after/IN
boosting/VBG
base/NN
rates/NNS
to/TO
15/CD
%/NN
,/,
he/PRP
pledged/VBD
that/IN
``/``
rates/NNS
will/MD
have/VB
to/TO
remain/VB
high/JJ
for/IN
some/DT
time/NN
to/TO
come/VB
./.
''/''
Mr./NNP
Lawson/NNP
also/RB
made/VBD
it/PRP
clear/JJ
that/IN
he/PRP
would/MD
be/VB
watching/VBG
exchange/NN
rates/NNS
carefully/RB
./.
A/DT
sinking/VBG
pound/NN
makes/VBZ
imports/NNS
more/RBR
expensive/JJ
and/CC
increases/VBZ
businesses/NNS
'/POS
expectations/NNS
of/IN
future/JJ
inflation/NN
,/,
he/PRP
argued/VBD
./.
In/IN
an/DT
apparent/JJ
warning/NN
to/TO
currency/NN
traders/NNS
who/WP
have/VBP
lately/RB
been/VBN
selling/VBG
the/DT
British/JJ
currency/NN
,/,
he/PRP
stated/VBD
that/IN
the/DT
exchange/NN
rates/NNS
will/MD
have/VB
a/DT
``/``
major/JJ
role/NN
in/IN
the/DT
assessment/NN
of/IN
monetary/JJ
conditions/NNS
./.
''/''
In/IN
reaffirming/VBG
the/DT
current/JJ
monetary/JJ
policy/NN
of/IN
using/VBG
high/JJ
interest/NN
rates/NNS
to/TO
fight/VB
inflation/NN
and/CC
shore/VB
up/IN
the/DT
pound/NN
,/,
Mr./NNP
Lawson/NNP
dismissed/VBD
other/JJ
approaches/NNS
to/TO
managing/VBG
the/DT
economy/NN
./.
He/PRP
said/VBD
he/PRP
monitors/VBZ
the/DT
money-supply/JJ
figures/NNS
,/,
but/CC
does/VBZ
n't/RB
give/VB
them/PRP
paramount/JJ
importance/NN
,/,
as/IN
some/DT
private/JJ
and/CC
government/NN
economists/NNS
have/VBP
suggested/VBN
./.
Mr./NNP
Lawson/NNP
also/RB
dismissed/VBD
the/DT
possibility/NN
of/IN
imposing/VBG
direct/JJ
credit/NN
controls/NNS
on/IN
Britain/NNP
's/POS
financial/JJ
system/NN
./.
Mr./NNP
Lawson/NNP
's/POS
speech/NN
,/,
delivered/VBN
at/IN
the/DT
Lord/NNP
Mayor/NNP
of/IN
London/NNP
's/POS
annual/JJ
dinner/NN
at/IN
Mansion/NNP
House/NNP
,/,
came/VBD
on/IN
the/DT
heels/NNS
of/IN
a/DT
grueling/JJ
period/NN
for/IN
the/DT
U.K./NNP
economy/NN
./.
Two/CD
weeks/NNS
ago/RB
,/,
in/IN
a/DT
campaign/NN
to/TO
blunt/VB
inflation/NN
at/IN
home/NN
and/CC
arrest/VB
a/DT
world-wide/JJ
plunge/NN
in/IN
the/DT
pound/NN
,/,
he/PRP
raised/VBD
base/NN
rates/NNS
a/DT
full/JJ
percentage/NN
point/NN
to/TO
15/CD
%/NN
./.
Despite/IN
the/DT
increase/NN
,/,
the/DT
British/JJ
currency/NN
slid/VBD
below/IN
a/DT
perceived/VBN
threshold/NN
of/IN
three/CD
marks/NNS
early/RB
last/JJ
week/NN
./.
It/PRP
was/VBD
quoted/VBN
at/IN
2.9428/CD
marks/NNS
in/IN
late/JJ
New/NNP
York/NNP
trading/NN
Wednesday/NNP
./.
Leading/VBG
up/IN
to/TO
the/DT
speech/NN
was/VBD
a/DT
drumroll/NN
of/IN
economic/JJ
statistics/NNS
suggesting/VBG
that/IN
the/DT
British/JJ
war/NN
on/IN
inflation/NN
will/MD
be/VB
more/RBR
bruising/VBG
than/IN
previously/RB
assumed/VBN
./.
Unemployment/NN
in/IN
September/NNP
dropped/VBD
to/TO
1,695,000/CD
,/,
the/DT
lowest/JJS
level/NN
since/IN
1980/CD
./.
While/IN
lower/JJR
joblessness/NN
is/VBZ
generally/RB
good/JJ
news/NN
,/,
the/DT
hefty/JJ
drop/NN
last/JJ
month/NN
indicates/VBZ
that/IN
the/DT
economy/NN
is/VBZ
n't/RB
slowing/VBG
down/RP
as/RB
much/RB
as/IN
hoped/VBN
--/:
despite/IN
a/DT
doubling/NN
of/IN
interest/NN
rates/NNS
over/IN
the/DT
last/JJ
16/CD
months/NNS
./.
Meanwhile/RB
,/,
average/JJ
earnings/NNS
in/IN
Britain/NNP
were/VBD
up/RB
8.75/CD
%/NN
in/IN
August/NNP
over/IN
the/DT
previous/JJ
year/NN
./.
Another/DT
inflationary/JJ
sign/NN
came/VBD
in/IN
a/DT
surge/NN
in/IN
building-society/JJ
lending/NN
to/TO
a/DT
record/NN
#/#
10.2/CD
billion/CD
$/$
16.22/CD
billion/CD
last/JJ
month/NN
,/,
a/DT
much/RB
higher/JJR
level/NN
than/IN
economists/NNS
had/VBD
predicted/VBN
./.
In/IN
a/DT
separate/JJ
speech/NN
prepared/VBN
for/IN
delivery/NN
at/IN
the/DT
dinner/NN
,/,
Robin/NNP
Leigh-Pemberton/NNP
,/,
Bank/NNP
of/IN
England/NNP
governor/NN
,/,
conceded/VBD
that/IN
``/``
demand/NN
pressures/NNS
were/VBD
even/RB
more/RBR
buoyant/JJ
than/IN
had/VBD
been/VBN
appreciated/VBN
''/''
when/WRB
the/DT
British/JJ
economy/NN
was/VBD
heating/VBG
up/RP
last/JJ
year/NN
./.
He/PRP
added/VBD
that/IN
``/``
there/EX
's/VBZ
no/DT
quick-fix/JJ
solution/NN
''/''
to/TO
the/DT
economic/JJ
woes/NNS
,/,
and/CC
said/VBD
``/``
tight/JJ
monetary/JJ
policy/NN
is/VBZ
the/DT
right/JJ
approach/NN
./.
''/''
Discussing/VBG
the/DT
recent/JJ
slide/NN
in/IN
stock/NN
prices/NNS
,/,
the/DT
central/JJ
bank/NN
governor/NN
stated/VBD
that/IN
``/``
the/DT
markets/NNS
now/RB
appear/VBP
to/TO
have/VB
steadied/VBN
''/''
after/IN
the/DT
``/``
nasty/JJ
jolt/NN
''/''
of/IN
the/DT
190.58-point/JJ
plunge/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
a/DT
week/NN
ago/RB
./.
Although/IN
the/DT
New/NNP
York/NNP
market/NN
plunge/NN
prompted/VBD
a/DT
70.5-point/JJ
drop/NN
in/IN
the/DT
London/NNP
Financial/NNP
Times-Stock/NNP
Exchange/NNP
100/CD
Share/NNP
Index/NNP
,/,
Mr./NNP
Leigh-Pemberton/NNP
declared/VBD
``/``
that/IN
the/DT
experience/NN
owed/VBD
nothing/NN
to/TO
the/DT
particular/JJ
problems/NNS
of/IN
the/DT
British/JJ
economy/NN
./.
''/''
Specifically/RB
,/,
he/PRP
pointed/VBD
out/RP
that/IN
compared/VBN
with/IN
the/DT
U.S./NNP
market/NN
,/,
the/DT
U.K./NNP
has/VBZ
far/RB
fewer/RBR
highly/RB
leveraged/VBN
junk-bond/NN
financings/NNS
./.
Discussing/VBG
future/JJ
monetary/JJ
arrangements/NNS
,/,
Mr./NNP
Lawson/NNP
repeated/VBD
the/DT
Thatcher/NNP
government/NN
's/POS
commitment/NN
to/TO
join/VB
the/DT
exchange/NN
rate/NN
mechanism/NN
of/IN
the/DT
European/NNP
Monetary/NNP
System/NNP
,/,
but/CC
he/PRP
did/VBD
n't/RB
indicate/VB
when/WRB
./.
Ing/NNP
./.
C./NNP
Olivetti/NNP
&/CC
Co./NNP
,/,
claiming/VBG
it/PRP
has/VBZ
won/VBN
the/DT
race/NN
in/IN
Europe/NNP
to/TO
introduce/VB
computers/NNS
based/VBN
on/IN
a/DT
powerful/JJ
new/JJ
microprocessor/NN
chip/NN
,/,
unveiled/VBD
its/PRP$
CP486/CD
computer/NN
yesterday/NN
./.
The/DT
product/NN
is/VBZ
the/DT
first/JJ
from/IN
a/DT
European/JJ
company/NN
based/VBN
on/IN
Intel/NNP
Corp./NNP
's/POS
new/JJ
32-bit/JJ
486tm/NN
microprocessor/NN
,/,
which/WDT
works/VBZ
several/JJ
times/NNS
faster/RBR
than/IN
previously/RB
available/JJ
chips/NNS
./.
Hewlett-Packard/NNP
Co./NNP
became/VBD
the/DT
first/JJ
company/NN
world-wide/JJ
to/TO
announce/VB
a/DT
product/NN
based/VBN
on/IN
the/DT
chip/NN
earlier/RBR
this/DT
month/NN
,/,
but/CC
it/PRP
wo/MD
n't/RB
start/VB
shipping/VBG
the/DT
computers/NNS
until/IN
early/JJ
next/JJ
year/NN
./.
An/DT
Olivetti/NNP
spokesman/NN
said/VBD
the/DT
company/NN
's/POS
factories/NNS
are/VBP
already/RB
beginning/VBG
to/TO
produce/VB
the/DT
machine/NN
,/,
and/CC
that/IN
it/PRP
should/MD
be/VB
available/JJ
in/IN
Europe/NNP
by/IN
December/NNP
./.
``/``
What/WP
this/DT
means/VBZ
is/VBZ
that/IN
Europeans/NNS
will/MD
have/VB
these/DT
machines/NNS
in/IN
their/PRP$
offices/NNS
before/RB
Americans/NNS
do/VBP
,/,
''/''
the/DT
spokesman/NN
said/VBD
./.
The/DT
new/JJ
chip/NN
``/``
is/VBZ
a/DT
very/RB
big/JJ
step/NN
in/IN
computing/NN
,/,
and/CC
it/PRP
is/VBZ
important/JJ
that/IN
Olivetti/NNP
be/VB
one/CD
of/IN
the/DT
first/JJ
out/IN
on/IN
the/DT
market/NN
with/IN
this/DT
product/NN
,/,
''/''
said/VBD
Patricia/NNP
Meagher/NNP
Davis/NNP
,/,
an/DT
analyst/NN
at/IN
James/NNP
Capel/NNP
&/CC
Co./NNP
in/IN
London/NNP
./.
Executives/NNS
at/IN
Olivetti/NNP
,/,
whose/WP$
earnings/NNS
have/VBP
been/VBN
steadily/RB
sliding/VBG
over/IN
the/DT
past/JJ
couple/NN
of/IN
years/NNS
,/,
have/VBP
acknowledged/VBN
that/IN
in/IN
the/DT
past/NN
they/PRP
have/VBP
lagged/VBN
at/IN
getting/VBG
new/JJ
technology/NN
to/TO
market/NN
./.
Ms./NNP
Davis/NNP
said/VBD
the/DT
new/JJ
machines/NNS
could/MD
steal/VB
some/DT
sales/NNS
away/RB
from/IN
Olivetti/NNP
's/POS
own/JJ
minicomputers/NNS
,/,
but/CC
would/MD
bring/VB
new/JJ
sales/NNS
among/IN
professionals/NNS
such/JJ
as/IN
engineers/NNS
,/,
stockbrokers/NNS
and/CC
medical/JJ
doctors/NNS
./.
Although/IN
Olivetti/NNP
's/POS
profits/NNS
tumbled/VBD
40/CD
%/NN
in/IN
the/DT
first/JJ
half/NN
of/IN
this/DT
year/NN
,/,
she/PRP
believes/VBZ
Olivetti/NNP
's/POS
restructuring/NN
last/JJ
fall/NN
and/CC
its/PRP$
introduction/NN
of/IN
new/JJ
products/NNS
will/MD
begin/VB
to/TO
bear/VB
fruit/NN
with/IN
an/DT
earnings/NNS
rebound/NN
next/JJ
year/NN
,/,
especially/RB
if/IN
it/PRP
can/MD
fulfill/VB
its/PRP$
promise/NN
to/TO
deliver/VB
the/DT
new/JJ
machines/NNS
by/IN
December/NNP
./.
``/``
We/PRP
think/VBP
the/DT
worst/JJS
is/VBZ
over/RB
''/''
in/IN
the/DT
European/JJ
information-technology/JJ
market/NN
,/,
she/PRP
said/VBD
./.
Depending/VBG
on/IN
the/DT
type/NN
of/IN
software/NN
and/CC
peripherals/NNS
used/VBN
,/,
the/DT
machines/NNS
can/MD
serve/VB
either/CC
as/IN
the/DT
main/JJ
computer/NN
in/IN
a/DT
network/NN
of/IN
many/JJ
terminals/NNS
a/DT
role/NN
usually/RB
filled/VBN
by/IN
a/DT
minicomputer/NN
a/DT
technical/JJ
workstation/NN
or/CC
as/IN
a/DT
very/RB
fast/JJ
personal/JJ
computer/NN
./.
``/``
It/PRP
's/VBZ
the/DT
missing/JJ
link/NN
''/''
in/IN
Olivetti/NNP
's/POS
product/NN
line/NN
between/IN
small/JJ
personal/JJ
computers/NNS
and/CC
higher-priced/JJ
minicomputers/NNS
,/,
the/DT
Olivetti/NNP
spokesman/NN
said/VBD
./.
He/PRP
added/VBD
that/IN
Olivetti/NNP
will/MD
continue/VB
making/VBG
its/PRP$
LSX/NNP
minicomputer/NN
line/NN
./.
The/DT
machines/NNS
will/MD
cost/VB
around/RB
$/$
16,250/CD
on/IN
average/NN
in/IN
Europe/NNP
./.
The/DT
Intel/NNP
486/CD
chip/NN
can/MD
process/VB
15/CD
million/CD
instructions/NNS
per/IN
second/NN
,/,
or/CC
MIPS/NNP
,/,
while/IN
Intel/NNP
's/POS
previous/JJ
386/CD
chip/NN
could/MD
handle/VB
only/RB
3/CD
to/TO
6/CD
MIPS/NNS
./.
Olivetti/NNP
also/RB
plans/VBZ
to/TO
sell/VB
the/DT
CP486/NNP
computer/NN
in/IN
the/DT
U.S./NNP
starting/VBG
next/JJ
year/NN
through/IN
Olivetti/NNP
USA/NNP
and/CC
through/IN
its/PRP$
ISC\/Bunker/NNP
Ramo/NNP
unit/NN
,/,
which/WDT
specializes/VBZ
in/IN
automating/VBG
bank-branch/JJ
networks/NNS
./.
Viatech/NNP
Inc./NNP
said/VBD
it/PRP
received/VBD
approval/NN
from/IN
the/DT
French/JJ
government/NN
for/IN
its/PRP$
proposed/VBN
$/$
44.7/CD
million/CD
acquisition/NN
of/IN
Ferembal/NNP
S.A/NNP
./.
The/DT
approval/NN
satisfies/NNS
the/DT
remaining/JJ
conditions/NNS
of/IN
the/DT
purchase/NN
,/,
which/WDT
is/VBZ
expected/VBN
to/TO
close/VB
within/IN
two/CD
weeks/NNS
./.
erembal/NNP
,/,
the/DT
second-largest/JJ
maker/NN
of/IN
food/NN
cans/NNS
in/IN
France/NNP
,/,
had/VBD
1988/CD
sales/NNS
of/IN
$/$
150/CD
million/CD
./.
Ferembal/NNP
has/VBZ
930/CD
workers/NNS
at/IN
four/CD
canning/NN
manufacturing/NN
plants/NNS
and/CC
one/CD
plastic/NN
container/NN
facility/NN
./.
Viatech/NNP
makes/VBZ
flexible/JJ
packaging/NN
films/NNS
and/CC
machinery/NN
,/,
and/CC
materials/NNS
for/IN
the/DT
food/NN
and/CC
pharmaceutical/JJ
industries/NNS
./.
Social/NNP
Security/NNP
benefits/NNS
will/MD
rise/VB
4.7/CD
%/NN
next/JJ
year/NN
to/TO
keep/VB
pace/NN
with/IN
inflation/NN
,/,
boosting/VBG
the/DT
average/JJ
monthly/JJ
benefit/NN
to/TO
$/$
566/CD
from/IN
$/$
541/CD
,/,
the/DT
Department/NNP
of/IN
Health/NNP
and/CC
Human/NNP
Services/NNP
announced/VBD
./.
The/DT
higher/JJR
payments/NNS
will/MD
start/VB
with/IN
Social/NNP
Security/NNP
checks/NNS
received/VBN
on/IN
Jan./NNP
3/CD
,/,
1990/CD
./.
Supplemental/NNP
Security/NNP
Income/NNP
payments/NNS
to/TO
the/DT
disabled/JJ
also/RB
will/MD
rise/VB
4.7/CD
%/NN
,/,
starting/VBG
with/IN
checks/NNS
received/VBN
on/IN
Dec./NNP
29/CD
,/,
1988/CD
,/,
increasing/VBG
the/DT
maximum/NN
SSI/NNP
payment/NN
to/TO
$/$
386/CD
from/IN
$/$
368/CD
a/DT
month/NN
./.
The/DT
inflation/NN
adjustment/NN
also/RB
means/VBZ
that/IN
the/DT
maximum/NN
annual/JJ
level/NN
of/IN
earnings/NNS
subject/JJ
to/TO
the/DT
wage/NN
tax/NN
that/WDT
generates/VBZ
revenue/NN
for/IN
the/DT
Social/NNP
Security/NNP
trust/NN
fund/NN
will/MD
rise/VB
to/TO
$/$
50,400/CD
in/IN
1990/CD
from/IN
$/$
48,000/CD
this/DT
year/NN
./.
As/IN
mandated/VBN
by/IN
law/NN
,/,
the/DT
tax/NN
rate/NN
will/MD
rise/VB
to/TO
7.65/CD
%/NN
in/IN
1990/CD
from/IN
7.51/CD
%/NN
and/CC
wo/MD
n't/RB
rise/VB
any/DT
further/RBR
in/IN
the/DT
future/NN
./.
This/DT
means/VBZ
that/IN
the/DT
maximum/NN
yearly/JJ
Social/NNP
Security/NNP
tax/NN
paid/VBN
by/IN
workers/NNS
and/CC
employers/NNS
each/DT
will/MD
rise/VB
$/$
250.80/CD
next/JJ
year/NN
to/TO
$/$
3,855.60/CD
./.
Beneficiaries/NNS
aged/VBN
65/CD
through/IN
69/CD
will/MD
be/VB
able/JJ
to/TO
earn/VB
$/$
9,360/CD
without/IN
losing/VBG
any/DT
Social/NNP
Security/NNP
benefits/NNS
in/IN
1990/CD
,/,
up/IN
from/IN
$/$
8,880/CD
this/DT
year/NN
./.
The/DT
exempt/JJ
amount/NN
for/IN
beneficiaries/NNS
under/IN
65/CD
will/MD
rise/VB
to/TO
$/$
6,840/CD
from/IN
$/$
6,480/CD
./.
The/DT
adjustments/NNS
reflect/VBP
the/DT
increase/NN
in/IN
the/DT
consumer/NN
price/NN
index/NN
for/IN
urban/JJ
wage/NN
earners/NNS
and/CC
clerical/JJ
workers/NNS
from/IN
the/DT
third/JJ
quarter/NN
of/IN
last/JJ
year/NN
to/TO
the/DT
third/JJ
quarter/NN
of/IN
this/DT
year/NN
./.
Health-care/JJ
companies/NNS
should/MD
get/VB
healthier/RBR
in/IN
the/DT
third/JJ
quarter/NN
./.
Medical-supply/JJ
houses/NNS
are/VBP
expected/VBN
to/TO
report/VB
earnings/NNS
increases/NNS
of/IN
about/RB
15/CD
%/NN
on/IN
average/NN
for/IN
the/DT
third/JJ
quarter/NN
,/,
despite/IN
sales/NNS
increases/NNS
of/IN
less/JJR
than/IN
10/CD
%/NN
,/,
analysts/NNS
say/VBP
./.
To/TO
offset/VB
sluggish/JJ
sales/NNS
growth/NN
,/,
companies/NNS
have/VBP
been/VBN
cutting/VBG
staff/NN
,/,
mostly/RB
through/IN
attrition/NN
,/,
and/CC
slowing/VBG
the/DT
growth/NN
in/IN
research/NN
and/CC
development/NN
spending/NN
./.
Sales/NNS
growth/NN
in/IN
the/DT
quarter/NN
was/VBD
slowed/VBN
by/IN
mounting/JJ
pressure/NN
from/IN
groups/NNS
of/IN
buyers/NNS
,/,
such/JJ
as/IN
hospitals/NNS
,/,
to/TO
hold/VB
down/RP
prices/NNS
./.
Suppliers/NNS
were/VBD
also/RB
hurt/VBN
by/IN
the/DT
stronger/JJR
U.S./NNP
dollar/NN
,/,
which/WDT
makes/VBZ
sales/NNS
abroad/RB
more/RBR
difficult/JJ
./.
In/IN
some/DT
cases/NNS
,/,
competition/NN
has/VBZ
squeezed/VBN
margins/NNS
./.
Becton/NNP
,/,
Dickinson/NNP
&/CC
Co./NNP
,/,
for/IN
example/NN
,/,
faces/VBZ
stiff/JJ
competition/NN
from/IN
a/DT
Japanese/JJ
supplier/NN
in/IN
the/DT
important/JJ
syringe/NN
market/NN
./.
The/DT
Franklin/NNP
Lakes/NNP
,/,
N.J./NNP
,/,
company/NN
is/VBZ
expected/VBN
to/TO
report/VB
sales/JJ
growth/NN
of/IN
only/JJ
5/CD
%/NN
to/TO
6/CD
%/NN
,/,
but/CC
should/MD
still/RB
maintain/VB
earnings/NNS
growth/NN
of/IN
10/CD
%/NN
,/,
says/VBZ
Jerry/NNP
E./NNP
Fuller/NNP
,/,
an/DT
analyst/NN
with/IN
Duff/NNP
&/CC
Phelps/NNP
Inc/NNP
./.
Among/IN
the/DT
first/JJ
of/IN
the/DT
group/NN
to/TO
post/VB
results/NNS
,/,
Abbott/NNP
Laboratories/NNP
said/VBD
third-quarter/JJ
net/JJ
income/NN
jumped/VBD
14/CD
%/NN
to/TO
$/$
196/CD
million/CD
,/,
or/CC
88/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
172/CD
million/CD
,/,
or/CC
76/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
for/IN
the/DT
company/NN
,/,
based/VBN
in/IN
Abbott/NNP
Park/NNP
,/,
Ill./NNP
,/,
rose/VBD
8.3/CD
%/NN
to/TO
$/$
1.31/CD
billion/CD
from/IN
$/$
1.21/CD
billion/CD
./.
Baxter/NNP
International/NNP
Inc./NNP
yesterday/NN
reported/VBD
net/JJ
climbed/VBD
20/CD
%/NN
in/IN
the/DT
third/JJ
period/NN
to/TO
$/$
102/CD
million/CD
,/,
or/CC
34/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
85/CD
million/CD
,/,
or/CC
28/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
for/IN
the/DT
Deerfield/NNP
,/,
Ill./NNP
,/,
company/NN
rose/VBD
5.8/CD
%/NN
to/TO
$/$
1.81/CD
billion/CD
from/IN
$/$
1.71/CD
billion/CD
./.
But/CC
not/RB
every/DT
company/NN
expects/VBZ
to/TO
report/VB
increased/VBN
earnings/NNS
./.
C.R./NNP
Bard/NNP
Inc./NNP
yesterday/NN
said/VBD
third-quarter/JJ
net/JJ
plunged/VBD
51/CD
%/NN
to/TO
$/$
9.9/CD
million/CD
,/,
or/CC
18/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
20/CD
million/CD
,/,
or/CC
35/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
fell/VBD
1.2/CD
%/NN
to/TO
$/$
190.1/CD
million/CD
from/IN
$/$
192.5/CD
million/CD
./.
The/DT
Murray/NNP
Hill/NNP
,/,
N.J./NNP
,/,
company/NN
said/VBD
full-year/JJ
earnings/NNS
may/MD
be/VB
off/JJ
33/CD
cents/NNS
a/DT
share/NN
because/IN
the/DT
company/NN
removed/VBD
a/DT
catheter/NN
from/IN
the/DT
market/NN
./.
In/IN
1988/CD
,/,
the/DT
company/NN
earned/VBD
$/$
1.38/CD
a/DT
share/NN
./.
The/DT
Food/NNP
and/CC
Drug/NNP
Administration/NNP
had/VBD
raised/VBN
questions/NNS
about/IN
the/DT
device/NN
's/POS
design/NN
./.
Some/DT
analysts/NNS
add/VBP
that/IN
third-party/JJ
pressures/NNS
to/TO
reduce/VB
health/NN
costs/NNS
will/MD
continue/VB
to/TO
bedevil/VB
companies/NNS
'/POS
bottom/JJ
lines/NNS
./.
Takeover/NN
speculation/NN
,/,
which/WDT
has/VBZ
been/VBN
buoying/VBG
stocks/NNS
of/IN
supply/NN
houses/NNS
,/,
may/MD
also/RB
ease/VB
,/,
says/VBZ
Peter/NNP
Sidoti/NNP
,/,
an/DT
analyst/NN
with/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc/NNP
./.
``/``
As/IN
that/DT
wanes/VBZ
,/,
you/PRP
're/VBP
going/VBG
to/TO
see/VB
the/DT
stocks/NNS
probably/RB
wane/VBP
as/IN
well/RB
,/,
''/''
he/PRP
says/VBZ
./.
Hospitals/NNS
companies/NNS
,/,
meanwhile/RB
,/,
are/VBP
reporting/VBG
improved/VBN
earnings/NNS
./.
Bolstered/VBN
by/IN
strong/JJ
performances/NNS
by/IN
its/PRP$
psychiatric/JJ
hospitals/NNS
,/,
National/NNP
Medical/NNP
Enterprises/NNP
Inc./NNP
,/,
Los/NNP
Angeles/NNP
,/,
reported/VBD
net/JJ
income/NN
of/IN
$/$
50/CD
million/CD
,/,
or/CC
65/CD
cents/NNS
a/DT
share/NN
,/,
for/IN
the/DT
first/JJ
quarter/NN
ended/VBN
Aug./NNP
31/CD
,/,
up/RB
from/IN
$/$
41/CD
million/CD
,/,
or/CC
56/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Humana/NNP
Inc./NNP
,/,
Louisville/NNP
,/,
Ky./NNP
,/,
also/RB
reported/VBD
favorable/JJ
results/NNS
,/,
with/IN
net/JJ
income/NN
of/IN
$/$
66.7/CD
million/CD
,/,
or/CC
66/CD
cents/NNS
,/,
in/IN
the/DT
fourth/JJ
quarter/NN
ended/VBN
Aug./NNP
31/CD
,/,
up/RB
from/IN
$/$
58.2/CD
million/CD
,/,
or/CC
59/CD
cents/NNS
,/,
a/DT
year/NN
earlier/RBR
./.
Analysts/NNS
say/VBP
the/DT
handful/NN
of/IN
hospital/NN
companies/NNS
that/WDT
are/VBP
still/RB
publicly/RB
traded/VBN
are/VBP
benefiting/VBG
from/IN
several/JJ
trends/NNS
./.
Most/RBS
important/JJ
,/,
hospital/NN
admission/NN
rates/NNS
are/VBP
stabilizing/VBG
after/IN
several/JJ
years/NNS
of/IN
decline/NN
./.
Moreover/RB
,/,
companies/NNS
have/VBP
sold/VBN
off/RP
many/JJ
of/IN
their/PRP$
smaller/JJR
,/,
less-profitable/JJ
hospitals/NNS
and/CC
have/VBP
completed/VBN
painful/JJ
restructurings/NNS
./.
Humana/NNP
's/POS
revenues/NNS
,/,
for/IN
example/NN
,/,
are/VBP
being/VBG
boosted/VBN
by/IN
large/JJ
increases/NNS
in/IN
enrollments/NNS
in/IN
the/DT
company/NN
's/POS
health/NN
maintenance/NN
organizations/NNS
./.
Says/VBZ
Todd/NNP
Richter/NNP
,/,
an/DT
analyst/NN
with/IN
Dean/NNP
Witter/NNP
Reynolds/NNP
:/:
``/``
The/DT
shakeout/NN
in/IN
the/DT
publicly/RB
traded/VBN
companies/NNS
is/VBZ
over/RB
./.
''/''
Initial/JJ
claims/NNS
for/IN
regular/JJ
state/NN
unemployment/NN
benefits/NNS
rose/VBD
to/TO
a/DT
seasonally/RB
adjusted/VBN
396,000/CD
during/IN
the/DT
week/NN
ended/VBN
Oct./NNP
7/CD
from/IN
334,000/CD
the/DT
previous/JJ
week/NN
,/,
the/DT
Labor/NNP
Department/NNP
said/VBD
./.
The/DT
number/NN
of/IN
people/NNS
receiving/VBG
regular/JJ
state/NN
benefits/NNS
in/IN
the/DT
week/NN
ended/VBN
Sept./NNP
30/CD
decreased/VBD
to/TO
a/DT
seasonally/RB
adjusted/VBN
2,202,000/CD
,/,
or/CC
2.2/CD
%/NN
of/IN
those/DT
covered/VBN
by/IN
unemployment/NN
insurance/NN
,/,
from/IN
2,205,000/CD
the/DT
previous/JJ
week/NN
,/,
when/WRB
the/DT
insured/VBN
unemployment/NN
rate/NN
also/RB
was/VBD
2.2/CD
%/NN
./.
Counting/VBG
all/DT
state/NN
and/CC
federal/JJ
benefit/NN
programs/NNS
,/,
the/DT
number/NN
of/IN
people/NNS
receiving/VBG
unemployment/NN
benefits/NNS
in/IN
the/DT
week/NN
ended/VBN
Sept./NNP
30/CD
fell/VBD
to/TO
1,809,300/CD
from/IN
1,838,200/CD
a/DT
week/NN
earlier/RBR
./.
These/DT
figures/NNS
are/VBP
n't/RB
seasonally/RB
adjusted/VBN
./.
A/DT
Labor/NNP
Department/NNP
spokesman/NN
said/VBD
the/DT
unusually/RB
high/JJ
number/NN
of/IN
initial/JJ
claims/NNS
for/IN
state/NN
unemployment/NN
benefits/NNS
reflects/VBZ
the/DT
impact/NN
of/IN
Hurricane/NNP
Hugo/NNP
on/IN
southern/JJ
states/NNS
,/,
particularly/RB
North/NNP
Carolina/NNP
and/CC
South/NNP
Carolina/NNP
./.
The/DT
figure/NN
also/RB
may/MD
reflect/VB
initial/JJ
claims/NNS
filed/VBN
by/IN
striking/VBG
Nynex/NNP
Corp./NNP
workers/NNS
who/WP
have/VBP
become/VBN
eligible/JJ
for/IN
unemployment/NN
benefits/NNS
,/,
the/DT
official/NN
said/VBD
./.
Digital/NNP
Equipment/NNP
Corp./NNP
reported/VBD
a/DT
32/CD
%/NN
decline/NN
in/IN
net/JJ
income/NN
on/IN
a/DT
modest/JJ
revenue/NN
gain/NN
in/IN
its/PRP$
fiscal/JJ
first/JJ
quarter/NN
,/,
causing/VBG
some/DT
analysts/NNS
to/TO
predict/VB
weaker/JJR
results/NNS
ahead/RB
than/IN
they/PRP
had/VBD
expected/VBN
./.
Although/IN
the/DT
second-largest/JJ
computer/NN
maker/NN
had/VBD
prepared/VBN
Wall/NNP
Street/NNP
for/IN
a/DT
poor/JJ
quarter/NN
,/,
analysts/NNS
said/VBD
they/PRP
were/VBD
troubled/VBN
by/IN
signs/NNS
of/IN
flat/JJ
U.S./NNP
orders/NNS
and/CC
a/DT
slowdown/NN
in/IN
the/DT
rate/NN
of/IN
gain/NN
in/IN
foreign/JJ
orders/NNS
./.
The/DT
Maynard/NNP
,/,
Mass./NNP
,/,
company/NN
is/VBZ
in/IN
a/DT
transition/NN
in/IN
which/WDT
it/PRP
is/VBZ
trying/VBG
to/TO
reduce/VB
its/PRP$
reliance/NN
on/IN
mid-range/JJ
machines/NNS
and/CC
establish/VB
a/DT
presence/NN
in/IN
workstations/NNS
and/CC
mainframes/NNS
./.
Net/NN
for/IN
the/DT
quarter/NN
ended/VBD
Sept./NNP
30/CD
fell/VBD
to/TO
$/$
150.8/CD
million/CD
,/,
or/CC
$/$
1.20/CD
a/DT
share/NN
,/,
from/IN
$/$
223/CD
million/CD
,/,
or/CC
$/$
1.71/CD
a/DT
share/NN
,/,
a/DT
year/NN
ago/RB
./.
Revenue/NN
rose/VBD
6.4/CD
%/NN
to/TO
$/$
3.13/CD
billion/CD
from/IN
$/$
2.94/CD
billion/CD
./.
Digital/NN
said/VBD
a/DT
shift/NN
in/IN
its/PRP$
product/NN
mix/NN
toward/IN
low-end/JJ
products/NNS
and/CC
strong/JJ
growth/NN
in/IN
workstation/NN
sales/NNS
yielded/VBD
lower/JJR
gross/JJ
margins/NNS
./.
A/DT
spokesman/NN
also/RB
said/VBD
margins/NNS
for/IN
the/DT
company/NN
's/POS
service/NN
business/NN
narrowed/VBD
somewhat/RB
because/IN
of/IN
heavy/JJ
investments/NNS
made/VBN
in/IN
that/DT
sector/NN
./.
The/DT
lack/NN
of/IN
a/DT
strong/JJ
product/NN
at/IN
the/DT
high/JJ
end/NN
of/IN
Digital/NNP
's/POS
line/NN
was/VBD
a/DT
significant/JJ
drag/NN
on/IN
sales/NNS
./.
Digital/NNP
hopes/VBZ
to/TO
address/VB
that/DT
with/IN
the/DT
debut/NN
of/IN
its/PRP$
first/JJ
mainframe-class/JJ
computers/NNS
next/IN
Tuesday/NNP
./.
The/DT
new/JJ
line/NN
is/VBZ
aimed/VBN
directly/RB
at/IN
International/NNP
Business/NNP
Machines/NNP
Corp/NNP
./.
``/``
Until/IN
the/DT
new/JJ
mainframe/NN
products/NNS
kick/VBP
in/RP
,/,
there/EX
wo/MD
n't/RB
be/VB
a/DT
lot/NN
of/IN
revenue/NN
contribution/NN
at/IN
the/DT
high/JJ
end/NN
,/,
and/CC
that/DT
's/VBZ
hurt/VB
us/PRP
,/,
''/''
said/VBD
Mark/NNP
Steinkrauss/NNP
,/,
Digital/NNP
's/POS
director/NN
of/IN
investor/NN
relations/NNS
./.
He/PRP
said/VBD
unfavorable/JJ
currency/NN
translations/NNS
were/VBD
also/RB
a/DT
factor/NN
in/IN
the/DT
quarter/NN
./.
DEC/NNP
shares/NNS
rose/VBD
$/$
1.375/CD
to/TO
$/$
89.75/CD
apiece/RB
in/IN
consolidated/JJ
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
trading/NN
yesterday/NN
./.
But/CC
analysts/NNS
said/VBD
that/IN
against/IN
the/DT
backdrop/NN
of/IN
a/DT
nearly/RB
40-point/JJ
rise/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
,/,
that/WDT
should/MD
n't/RB
necessarily/RB
be/VB
taken/VBN
as/IN
a/DT
sign/NN
of/IN
great/JJ
strength/NN
./.
Some/DT
cut/VBD
their/PRP$
earnings/NNS
estimates/NNS
for/IN
the/DT
stock/NN
this/DT
year/NN
and/CC
predicted/VBD
more/JJR
efforts/NNS
to/TO
control/VB
costs/NNS
ahead/RB
./.
``/``
I/PRP
think/VBP
the/DT
next/JJ
few/JJ
quarters/NNS
will/MD
be/VB
difficult/JJ
,/,
''/''
said/VBD
Steven/NNP
Milunovich/NNP
of/IN
First/NNP
Boston/NNP
./.
``/``
Margins/NNS
will/MD
remain/VB
under/IN
pressure/NN
,/,
and/CC
when/WRB
the/DT
new/JJ
mainframe/NN
does/VBZ
ship/VB
,/,
I/PRP
'm/VBP
not/RB
sure/JJ
it/PRP
will/MD
be/VB
a/DT
big/JJ
winner/NN
./.
''/''
Mr./NNP
Milunovich/NNP
said/VBD
he/PRP
was/VBD
revising/VBG
his/PRP$
estimate/NN
for/IN
DEC/NNP
's/POS
current/JJ
year/NN
from/IN
$/$
8.20/CD
a/DT
share/NN
to/TO
``/``
well/RB
below/IN
$/$
8/CD
,/,
''/''
although/IN
he/PRP
has/VBZ
n't/RB
settled/VBN
on/IN
a/DT
final/JJ
number/NN
./.
One/CD
troubling/VBG
aspect/NN
of/IN
DEC/NNP
's/POS
results/NNS
,/,
analysts/NNS
said/VBD
,/,
was/VBD
its/PRP$
performance/NN
in/IN
Europe/NNP
./.
DEC/NNP
said/VBD
its/PRP$
overseas/JJ
business/NN
,/,
which/WDT
now/RB
accounts/VBZ
for/IN
more/JJR
than/IN
half/NN
of/IN
sales/NNS
,/,
improved/VBD
in/IN
the/DT
quarter/NN
./.
It/PRP
even/RB
took/VBD
the/DT
unusually/RB
frank/JJ
step/NN
of/IN
telling/VBG
analysts/NNS
in/IN
a/DT
morning/NN
conference/NN
call/NN
that/IN
orders/NNS
in/IN
Europe/NNP
were/VBD
up/RB
in/IN
``/``
double/JJ
digits/NNS
''/''
in/IN
foreign-currency/JJ
terms/NNS
./.
That/DT
gain/NN
probably/RB
translated/VBN
into/IN
about/RB
5/CD
%/NN
to/TO
7/CD
%/NN
in/IN
dollar/NN
terms/NNS
,/,
well/RB
below/IN
recent/JJ
quarters/NNS
'/POS
gains/NNS
of/IN
above/IN
20/CD
%/NN
,/,
reckons/VBZ
Jay/NNP
Stevens/NNP
of/IN
Dean/NNP
Witter/NNP
Reynolds/NNP
./.
``/``
That/DT
was/VBD
a/DT
disappointment/NN
''/''
and/CC
a/DT
sign/NN
of/IN
overall/JJ
computer-market/JJ
softness/NN
in/IN
Europe/NNP
,/,
Mr./NNP
Stevens/NNP
said/VBD
./.
Marc/NNP
Schulman/NNP
,/,
with/IN
UBS/NNP
Securities/NNP
in/IN
New/NNP
York/NNP
,/,
dropped/VBD
his/PRP$
estimate/NN
of/IN
DEC/NNP
's/POS
full-year/JJ
net/NN
to/TO
$/$
6.80/CD
a/DT
share/NN
from/IN
$/$
8/CD
./.
Although/IN
overall/JJ
revenues/NNS
were/VBD
stronger/JJR
,/,
Mr./NNP
Schulman/NNP
said/VBD
,/,
DEC/NNP
``/``
drew/VBD
down/RB
its/PRP$
European/JJ
backlog/NN
''/''
and/CC
had/VBD
flat/JJ
world-wide/JJ
orders/NNS
overall/JJ
./.
``/``
The/DT
bottom/JJ
line/NN
is/VBZ
that/IN
it/PRP
's/VBZ
more/JJR
hand/NN
to/TO
mouth/NN
than/IN
it/PRP
has/VBZ
been/VBN
before/RB
,/,
''/''
he/PRP
said/VBD
./.
Mr./NNP
Schulman/NNP
said/VBD
he/PRP
believes/VBZ
that/IN
the/DT
roll-out/NN
of/IN
DEC/NNP
's/POS
new/JJ
mainframe/NN
will/MD
``/``
occur/VB
somewhat/RB
more/RBR
leisurely/JJ
''/''
than/IN
many/JJ
of/IN
his/PRP$
investment/NN
colleagues/NNS
expect/VBP
./.
He/PRP
said/VBD
current/JJ
expectations/NNS
are/VBP
for/IN
an/DT
entry/NN
level/NN
machine/NN
to/TO
be/VB
shipped/VBN
in/IN
December/NNP
,/,
with/IN
all/DT
of/IN
the/DT
more/RBR
sophisticated/JJ
versions/NNS
out/RB
by/IN
June/NNP
./.
For/IN
reasons/NNS
he/PRP
would/MD
n't/RB
elaborate/VB
on/IN
,/,
he/PRP
said/VBD
he/PRP
's/VBZ
sure/JJ
that/DT
schedule/NN
wo/MD
n't/RB
be/VB
met/VBN
,/,
meaning/VBG
less/JJR
profit/NN
impact/NN
from/IN
the/DT
product/NN
for/IN
DEC/NNP
in/IN
the/DT
next/JJ
few/JJ
quarters/NNS
./.
John/NNP
R./NNP
Wilke/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Colgate/NNP
Palmolive/NNP
Co./NNP
reported/VBD
third-quarter/JJ
net/JJ
income/NN
rose/VBD
27/CD
%/NN
,/,
bolstered/VBN
by/IN
strong/JJ
sales/NNS
in/IN
its/PRP$
Latin/JJ
American/JJ
business/NN
and/CC
surprisingly/RB
healthy/JJ
profits/NNS
from/IN
U.S./NNP
operations/NNS
./.
Colgate/NNP
said/VBD
net/JJ
income/NN
for/IN
the/DT
quarter/NN
rose/VBD
to/TO
$/$
76.7/CD
million/CD
,/,
or/CC
$/$
1.06/CD
a/DT
share/NN
,/,
on/IN
sales/NNS
that/WDT
increased/VBD
6/CD
%/NN
to/TO
$/$
1.3/CD
billion/CD
./.
In/IN
the/DT
year-earlier/JJ
period/NN
,/,
Colgate/NNP
posted/VBD
net/JJ
income/NN
of/IN
$/$
60.2/CD
million/CD
,/,
or/CC
88/CD
cents/NNS
a/DT
share/NN
./.
Last/JJ
year/NN
's/POS
results/NNS
included/VBD
earnings/NNS
from/IN
discontinued/VBN
operations/NNS
of/IN
$/$
13.1/CD
million/CD
,/,
or/CC
19/CD
cents/NNS
a/DT
share/NN
./.
Reuben/NNP
Mark/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
Colgate/NNP
,/,
said/VBD
earnings/NN
growth/NN
was/VBD
fueled/VBN
by/IN
strong/JJ
sales/NNS
in/IN
Latin/NNP
America/NNP
,/,
the/DT
Far/NNP
East/NNP
and/CC
Europe/NNP
./.
Results/NNS
were/VBD
also/RB
bolstered/VBN
by/IN
``/``
a/DT
very/RB
meaningful/JJ
increase/NN
in/IN
operating/NN
profit/NN
at/IN
Colgate/NNP
's/POS
U.S./NNP
business/NN
,/,
''/''
he/PRP
said/VBD
./.
Operating/NN
profit/NN
at/IN
Colgate/NNP
's/POS
U.S./NNP
household/NN
products/NNS
and/CC
personal/JJ
care/NN
businesses/NNS
,/,
which/WDT
include/VBP
such/JJ
well-known/JJ
brands/NNS
as/IN
Colgate/NNP
toothpaste/NN
and/CC
Fab/NNP
laundry/NN
detergent/NN
,/,
jumped/VBD
more/RBR
than/IN
40/CD
%/NN
,/,
the/DT
company/NN
said/VBD
./.
Mr./NNP
Mark/NNP
attributed/VBD
the/DT
improvement/NN
to/TO
cost/NN
savings/NNS
achieved/VBN
by/IN
consolidating/VBG
manufacturing/VBG
operations/NNS
,/,
blending/VBG
together/RB
two/CD
sales/NNS
organizations/NNS
and/CC
more/RBR
carefully/RB
focusing/VBG
the/DT
company/NN
's/POS
promotional/JJ
activities/NNS
./.
``/``
We/PRP
've/VBP
done/VBN
a/DT
lot/NN
to/TO
improve/VB
(/(
U.S/NNP
./.
results/NNS
and/CC
a/DT
lot/NN
more/JJR
will/MD
be/VB
done/VBN
,/,
''/''
Mr./NNP
Mark/NNP
said/VBD
./.
``/``
Improving/NN
profitability/NN
of/IN
U.S./NNP
operations/NNS
is/VBZ
an/DT
extremely/RB
high/JJ
priority/NN
in/IN
the/DT
company/NN
./.
''/''
Colgate/NNP
's/POS
results/NNS
were/VBD
at/IN
the/DT
high/JJ
end/NN
of/IN
the/DT
range/NN
of/IN
analysts/NNS
'/POS
forecasts/NNS
./.
The/DT
scope/NN
of/IN
the/DT
improvement/NN
in/IN
the/DT
U.S./NNP
business/NN
caught/VBD
some/DT
analysts/NNS
by/IN
surprise/NN
./.
The/DT
company/NN
's/POS
domestic/JJ
business/NN
,/,
especially/RB
its/PRP$
household/NN
products/NNS
division/NN
,/,
has/VBZ
performed/VBN
poorly/RB
for/IN
years/NNS
./.
Analysts/NNS
say/VBP
the/DT
earnings/NNS
improvement/NN
came/VBD
from/IN
cutting/VBG
costs/NNS
rather/RB
than/IN
increasing/VBG
sales/NNS
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
net/JJ
increased/VBD
14/CD
%/NN
to/TO
$/$
217.5/CD
million/CD
,/,
or/CC
$/$
3.09/CD
a/DT
share/NN
./.
Sales/NNS
rose/VBD
7/CD
%/NN
to/TO
$/$
3.8/CD
billion/CD
./.
The/DT
company/NN
earned/VBD
$/$
191.1/CD
million/CD
,/,
or/CC
$/$
2.79/CD
a/DT
share/NN
,/,
in/IN
the/DT
year-earlier/JJ
period/NN
./.
Colgate/NNP
's/POS
1988/CD
net/JJ
income/NN
included/VBD
$/$
40.1/CD
million/CD
,/,
or/CC
59/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
discontinued/VBN
operations/NNS
./.
Colgate/NNP
sold/VBD
its/PRP$
hospital/NN
supply/NN
and/CC
home/NN
health/NN
care/NN
business/NN
last/JJ
year/NN
./.
Separately/RB
,/,
Colgate/NNP
Wednesday/NNP
finalized/VBD
an/DT
agreement/NN
with/IN
MacroChem/NNP
Corp./NNP
,/,
a/DT
tiny/JJ
dental/JJ
products/NNS
and/CC
pharmaceutical/JJ
concern/NN
based/VBN
in/IN
Billerica/NNP
,/,
Mass./NNP
,/,
to/TO
market/VB
in/IN
the/DT
U.S./NNP
four/CD
of/IN
MacroChem/NNP
's/POS
FDA-approved/JJ
dental/JJ
products/NNS
./.
The/DT
products/NNS
--/:
sealants/NNS
and/CC
bonding/NN
materials/NNS
used/VBN
by/IN
dentists/NNS
--/:
all/DT
contain/VBP
fluoride/NN
that/WDT
is/VBZ
released/VBN
over/IN
time/NN
./.
The/DT
move/NN
is/VBZ
part/NN
of/IN
a/DT
drive/NN
to/TO
increase/VB
Colgate/NNP
's/POS
business/NN
with/IN
dentists/NNS
,/,
a/DT
company/NN
spokeswoman/NN
said/VBD
./.
Terms/NNS
of/IN
the/DT
agreement/NN
were/VBD
n't/RB
given/VBN
./.
USACafes/NNP
Limited/NNP
Partnership/NNP
said/VBD
it/PRP
completed/VBD
the/DT
sale/NN
of/IN
its/PRP$
Bonanza/NNP
restaurant/NN
franchise/NN
system/NN
to/TO
a/DT
subsidiary/NN
of/IN
Metromedia/NNP
Co./NNP
for/IN
$/$
71/CD
million/CD
in/IN
cash/NN
./.
USACafes/NNP
,/,
which/WDT
is/VBZ
nearly/RB
half-owned/JJ
by/IN
Sam/NNP
and/CC
Charles/NNP
Wyly/NNP
of/IN
Dallas/NNP
,/,
said/VBD
it/PRP
will/MD
distribute/VB
proceeds/NNS
from/IN
the/DT
sale/NN
to/TO
unit/NN
holders/NNS
as/IN
a/DT
liquidating/NN
dividend/NN
as/RB
soon/RB
as/IN
possible/JJ
./.
The/DT
Bonanza/NNP
franchise/NN
system/NN
,/,
which/WDT
generates/VBZ
about/RB
$/$
600/CD
million/CD
in/IN
sales/NNS
annually/RB
,/,
represented/VBD
substantially/RB
all/DT
of/IN
the/DT
partnership/NN
's/POS
assets/NNS
./.
The/DT
sale/NN
of/IN
the/DT
system/NN
has/VBZ
been/VBN
challenged/VBN
in/IN
a/DT
class-action/JJ
suit/NN
on/IN
behalf/NN
of/IN
unit/NN
holders/NNS
filed/VBN
last/JJ
week/NN
in/IN
a/DT
Delaware/NNP
court/NN
,/,
USACafes/NNP
said/VBD
./.
The/DT
company/NN
said/VBD
it/PRP
believes/VBZ
the/DT
suit/NN
is/VBZ
without/IN
merit/NN
./.
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
Co./NNP
unveiled/VBD
a/DT
sweetened/VBN
pension/NN
and/CC
early-retirement/JJ
program/NN
for/IN
management/NN
that/IN
it/PRP
hopes/VBZ
will/MD
enable/VB
it/PRP
to/TO
save/VB
$/$
450/CD
million/CD
in/IN
the/DT
next/JJ
year/NN
./.
AT&T/NNP
also/RB
said/VBD
net/JJ
income/NN
rose/VBD
19/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
./.
AT&T/NNP
said/VBD
its/PRP$
amended/VBN
pension/NN
program/NN
will/MD
nearly/RB
double/VB
to/TO
34,000/CD
the/DT
number/NN
of/IN
managers/NNS
eligible/NN
to/TO
retire/VB
with/IN
immediate/JJ
pension/NN
payments/NNS
./.
AT&T/NNP
said/VBD
that/IN
based/VBN
on/IN
studies/NNS
of/IN
other/JJ
companies/NNS
that/WDT
have/VBP
offered/VBN
retirement/NN
plans/NNS
,/,
it/PRP
expects/VBZ
about/RB
one-third/JJ
of/IN
its/PRP$
eligible/NN
managers/NNS
to/TO
retire/VB
under/IN
the/DT
new/JJ
program/NN
./.
AT&T/NNP
said/VBD
third-quarter/JJ
net/JJ
income/NN
grew/VBD
,/,
despite/IN
stiff/JJ
competition/NN
in/IN
all/DT
of/IN
the/DT
company/NN
's/POS
markets/NNS
./.
Net/JJ
income/NN
rose/VBD
to/TO
$/$
699/CD
million/CD
,/,
or/CC
65/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
the/DT
year-earlier/JJ
$/$
587/CD
million/CD
,/,
or/CC
55/CD
cents/NNS
a/DT
share/NN
./.
Revenue/NN
edged/VBD
up/RP
to/TO
$/$
8.9/CD
billion/CD
from/IN
$/$
8.81/CD
billion/CD
./.
The/DT
latest/JJS
period/NN
's/POS
net/NN
was/VBD
reduced/VBN
$/$
102/CD
million/CD
,/,
or/CC
nine/CD
cents/NNS
a/DT
share/NN
,/,
for/IN
a/DT
change/NN
in/IN
depreciation/NN
method/NN
and/CC
concurrent/JJ
changes/NNS
in/IN
estimates/NNS
of/IN
depreciable/JJ
lives/NNS
and/CC
net/JJ
salvage/NN
for/IN
certain/JJ
telecommunications/NNS
equipment/NN
./.
The/DT
results/NNS
roughly/RB
matched/VBD
estimates/NNS
of/IN
securities/NNS
analysts/NNS
,/,
who/WP
were/VBD
encouraged/VBN
by/IN
AT&T/NNP
increasing/VBG
its/PRP$
operating/NN
margin/NN
to/TO
13/CD
%/NN
from/IN
11/CD
%/NN
a/DT
year/NN
ago/RB
,/,
because/IN
of/IN
continued/VBN
cost-cutting/JJ
efforts/NNS
./.
Sales/NNS
of/IN
long-distance/JJ
services/NNS
,/,
an/DT
extremely/RB
competitive/JJ
market/NN
,/,
rose/VBD
6.4/CD
%/NN
./.
But/CC
the/DT
growth/NN
was/VBD
partly/RB
offset/VBN
by/IN
lower/JJR
equipment/NN
sales/NNS
and/CC
rentals/NNS
and/CC
price/NN
cuts/NNS
on/IN
some/DT
products/NNS
./.
Under/IN
the/DT
amended/VBN
pension/NN
program/NN
,/,
AT&T/NNP
managers/NNS
who/WP
have/VBP
at/IN
least/JJS
five/CD
years/NNS
of/IN
service/NN
will/MD
have/VB
five/CD
years/NNS
added/VBN
to/TO
their/PRP$
age/NN
and/CC
length/NN
of/IN
service/NN
for/IN
pension/NN
purposes/NNS
./.
Managers/NNS
who/WP
retire/VBP
Dec./NNP
30/CD
will/MD
have/VB
an/DT
additional/JJ
15/CD
%/NN
added/VBN
to/TO
their/PRP$
monthly/JJ
pension/NN
for/IN
as/RB
long/JJ
as/IN
five/CD
years/NNS
or/CC
age/NN
65/CD
,/,
whichever/WDT
comes/VBZ
earlier/RBR
./.
An/DT
AT&T/NNP
spokeswoman/NN
said/VBD
the/DT
company/NN
would/MD
likely/RB
replace/VB
about/RB
one-third/JJ
of/IN
its/PRP$
managers/NNS
who/WP
choose/VBP
to/TO
retire/VB
with/IN
new/JJ
employees/NNS
./.
Analysts/NNS
hailed/VBD
the/DT
sweetened/VBN
pension/NN
package/NN
,/,
which/WDT
they/PRP
said/VBD
had/VBD
been/VBN
the/DT
subject/NN
of/IN
rumors/NNS
for/IN
several/JJ
months/NNS
./.
``/``
This/DT
tells/VBZ
you/PRP
AT&T/NNP
is/VBZ
serious/JJ
about/IN
continuing/VBG
to/TO
manage/VB
their/PRP$
cost/NN
structure/NN
and/CC
is/VBZ
committed/VBN
to/TO
20%-a-year/JJ
earnings/NNS
growth/NN
,/,
''/''
said/VBD
Jack/NNP
Grubman/NNP
,/,
an/DT
analyst/NN
with/IN
PaineWebber/NNP
Inc/NNP
./.
But/CC
other/JJ
analysts/NNS
expressed/VBD
disappointment/NN
that/IN
the/DT
cost-cutting/JJ
move/NN
wo/MD
n't/RB
result/VB
in/IN
even/RB
greater/JJR
earnings/NNS
growth/NN
./.
``/``
This/DT
is/VBZ
a/DT
good/JJ
move/NN
,/,
but/CC
it/PRP
only/RB
gets/VBZ
you/PRP
to/TO
where/WRB
people/NNS
's/POS
expectations/NNS
already/RB
are/VBP
,/,
''/''
in/IN
terms/NNS
of/IN
earnings/NNS
growth/NN
,/,
said/VBD
Joel/NNP
D./NNP
Gross/NNP
,/,
an/DT
analyst/NN
with/IN
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
./.
Mr./NNP
Gross/NNP
said/VBD
he/PRP
had/VBD
hoped/VBN
that/IN
a/DT
cost/NN
savings/NNS
of/IN
$/$
450/CD
million/CD
would/MD
result/VB
in/IN
even/RB
greater/JJR
growth/NN
than/IN
the/DT
20/CD
%/NN
annual/JJ
earnings/NNS
increase/NN
AT&T/NNP
has/VBZ
told/VBN
analysts/NNS
it/PRP
expects/VBZ
in/IN
the/DT
future/NN
./.
AT&T/NNP
said/VBD
the/DT
special/JJ
retirement/NN
option/NN
will/MD
increase/VB
fourth-quarter/JJ
expenses/NNS
./.
But/CC
the/DT
company/NN
said/VBD
the/DT
amount/NN
ca/MD
n't/RB
be/VB
determined/VBN
until/IN
it/PRP
knows/VBZ
how/WRB
many/JJ
managers/NNS
opt/VBP
to/TO
retire/VB
./.
AT&T/NNP
said/VBD
the/DT
expense/NN
increase/NN
will/MD
be/VB
largely/RB
offset/VBN
by/IN
a/DT
gain/NN
from/IN
its/PRP$
previously/RB
announced/VBN
plan/NN
to/TO
swap/VB
its/PRP$
holdings/NNS
in/IN
Ing/NNP
./.
C./NNP
Olivetti/NNP
&/CC
Co./NNP
for/IN
shares/NNS
in/IN
Cie/NNP
./.
Industriali/NNP
Riunite/NNP
,/,
an/DT
Italian/JJ
holding/VBG
company/NN
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
AT&T/NNP
said/VBD
net/JJ
income/NN
was/VBD
$/$
1.99/CD
billion/CD
,/,
or/CC
$/$
1.85/CD
a/DT
share/NN
,/,
up/RB
19/CD
%/NN
from/IN
$/$
1.67/CD
billion/CD
,/,
or/CC
$/$
1.56/CD
a/DT
share/NN
./.
Revenue/NN
gained/VBD
3.1/CD
%/NN
to/TO
$/$
26.81/CD
billion/CD
from/IN
$/$
26/CD
billion/CD
./.
In/IN
composite/JJ
trading/NN
yesterday/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
AT&T/NNP
shares/NNS
closed/VBD
at/IN
$/$
43.375/CD
,/,
up/RB
87.5/CD
cents/NNS
./.
When/WRB
it/PRP
comes/VBZ
to/TO
buying/VBG
and/CC
selling/VBG
shares/NNS
,/,
Westridge/NNP
Capital/NNP
Management/NNP
Inc./NNP
takes/VBZ
a/DT
back/JJ
seat/NN
to/TO
no/DT
one/PRP
./.
Every/DT
dollar/NN
's/POS
worth/NN
of/IN
stock/NN
in/IN
the/DT
Los/NNP
Angeles/NNP
money/NN
manager/NN
's/POS
portfolio/NN
is/VBZ
traded/VBN
seven/CD
or/CC
eight/CD
times/NNS
a/DT
year/NN
,/,
the/DT
firm/NN
estimates/VBZ
./.
That/DT
makes/VBZ
it/PRP
the/DT
most/RBS
active/JJ
trader/NN
among/IN
all/DT
the/DT
nation/NN
's/POS
investment/NN
advisers/NNS
,/,
according/VBG
to/TO
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
filings/NNS
./.
But/CC
wait/VB
a/DT
second/NN
./.
Westridge/NNP
Capital/NNP
is/VBZ
an/DT
index/NN
fund/NN
--/:
the/DT
type/NN
of/IN
stolid/JJ
long-term/JJ
investor/NN
whose/WP$
goal/NN
is/VBZ
to/TO
be/VB
nothing/NN
more/JJR
than/IN
average/JJ
./.
Westridge/NNP
Capital/NNP
's/POS
frenetic/JJ
trading/NN
reflects/VBZ
the/DT
changes/NNS
sweeping/VBG
through/IN
the/DT
previously/RB
sleepy/JJ
world/NN
of/IN
indexing/NN
./.
Indexing/NN
for/IN
the/DT
most/JJS
part/NN
has/VBZ
involved/VBN
simply/RB
buying/VBG
and/CC
then/RB
holding/VBG
stocks/NNS
in/IN
the/DT
correct/JJ
mix/NN
to/TO
mirror/VB
a/DT
stock/NN
market/NN
barometer/NN
,/,
such/JJ
as/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
500-stock/JJ
index/NN
,/,
and/CC
match/VB
its/PRP$
performance/NN
./.
Institutional/JJ
investors/NNS
have/VBP
poured/VBN
$/$
210/CD
billion/CD
into/IN
stock/NN
and/CC
bond/NN
indexing/NN
as/IN
a/DT
cheap/JJ
and/CC
easy/JJ
form/NN
of/IN
investment/NN
management/NN
that/WDT
promises/VBZ
to/TO
post/VB
average/JJ
market/NN
returns/NNS
./.
These/DT
big/JJ
investors/NNS
have/VBP
flocked/VBN
to/TO
indexing/NN
because/IN
relatively/RB
few/JJ
``/``
active/JJ
''/''
stock/NN
pickers/NNS
have/VBP
been/VBN
able/JJ
to/TO
consistently/RB
match/VB
the/DT
returns/NNS
of/IN
the/DT
S&P/NNP
500/CD
or/CC
other/JJ
bellwethers/NNS
,/,
much/RB
less/RBR
beat/VB
it/PRP
./.
And/CC
the/DT
fees/NNS
investors/NNS
pay/VBP
for/IN
indexing/NN
run/VBP
a/DT
few/JJ
pennies/NNS
for/IN
each/DT
$/$
100/CD
of/IN
assets/NNS
--/:
a/DT
fraction/NN
of/IN
the/DT
cost/NN
of/IN
active/JJ
managers/NNS
./.
That/DT
's/VBZ
because/IN
computers/NNS
do/VBP
most/JJS
of/IN
the/DT
work/NN
,/,
and/CC
low/JJ
trading/NN
activity/NN
keeps/VBZ
a/DT
lid/NN
on/IN
commission/NN
costs/NNS
./.
But/CC
today/NN
,/,
indexing/NN
is/VBZ
moving/VBG
from/IN
a/DT
passive/NN
investment/NN
strategy/NN
to/TO
an/DT
increasingly/RB
active/JJ
one/CD
./.
Because/IN
index-fund/JJ
managers/NNS
are/VBP
no/RB
longer/RBR
satisfied/VBN
with/IN
merely/RB
being/VBG
average/JJ
,/,
they/PRP
have/VBP
developed/VBN
``/``
enhanced/VBN
''/''
indexing/NN
strategies/NNS
that/WDT
are/VBP
intended/VBN
to/TO
outperform/JJ
the/DT
market/NN
as/RB
much/JJ
as/IN
three/CD
percentage/NN
points/NNS
./.
``/``
Indexing/NN
has/VBZ
been/VBN
the/DT
most/RBS
single/JJ
successful/JJ
investment/NN
concept/NN
in/IN
the/DT
last/JJ
decade/NN
,/,
but/CC
the/DT
index/NN
money/NN
has/VBZ
been/VBN
just/RB
sort/NN
of/IN
sitting/VBG
there/RB
,/,
''/''
says/VBZ
Seth/NNP
M./NNP
Lynn/NNP
,/,
president/NN
of/IN
Axe/NNP
Core/NNP
Investors/NNP
Inc./NNP
,/,
an/DT
indexer/NN
based/VBN
in/IN
Tarrytown/NNP
,/,
N.Y/NNP
./.
``/``
Now/RB
the/DT
interest/NN
is/VBZ
in/IN
what/WP
else/RB
can/MD
I/PRP
do/VB
with/IN
that/DT
money/NN
./.
''/''
Among/IN
the/DT
souped-up/JJ
indexing/NN
strategies/NNS
:/:
Indexed/JJ
portfolios/NNS
can/MD
be/VB
built/VBN
around/IN
thousands/NNS
of/IN
stocks/NNS
,/,
or/CC
just/RB
a/DT
few/JJ
dozen/NN
,/,
rather/RB
than/IN
being/VBG
restricted/VBN
to/TO
the/DT
S&P/NNP
500/CD
companies/NNS
./.
They/PRP
can/MD
ignore/VB
the/DT
S&P/NNP
500/CD
stocks/NNS
altogether/RB
and/CC
focus/VB
on/IN
particular/JJ
types/NNS
of/IN
stocks/NNS
,/,
such/JJ
as/IN
smaller/JJR
companies/NNS
,/,
those/DT
paying/VBG
high/JJ
dividends/NNS
or/CC
companies/NNS
in/IN
a/DT
particular/JJ
industry/NN
,/,
state/NN
or/CC
country/NN
./.
With/IN
today/NN
's/POS
computer-driven/JJ
program/NN
trading/NN
techniques/NNS
,/,
index/NN
funds/NNS
can/MD
trade/VB
back/RB
and/CC
forth/RB
between/IN
stock-index/JJ
futures/NNS
and/CC
the/DT
actual/JJ
stocks/NNS
making/VBG
up/RP
indexes/NNS
such/JJ
as/IN
the/DT
S&P/NNP
500/CD
./.
Futures/NNS
and/CC
options/NNS
also/RB
make/VBP
it/PRP
possible/JJ
to/TO
build/VB
``/``
synthetic/JJ
''/''
index/NN
funds/NNS
that/WDT
do/VBP
n't/RB
actually/RB
own/VB
a/DT
single/JJ
share/NN
of/IN
stock/NN
,/,
but/CC
can/MD
produce/VB
returns/NNS
that/WDT
match/VBP
or/CC
exceed/VBP
the/DT
broad/JJ
stock/NN
market/NN
./.
One/CD
reason/NN
for/IN
these/DT
hybrids/NNS
is/VBZ
that/DT
indexing/NN
's/POS
rapid/JJ
growth/NN
is/VBZ
slowing/VBG
,/,
particularly/RB
for/IN
those/DT
``/``
plain/JJ
vanilla/NN
''/''
funds/NNS
that/WDT
mirror/VBP
the/DT
S&P/NNP
500/CD
./.
``/``
There/EX
is/VBZ
n't/RB
a/DT
boatload/NN
big/JJ
investors/NNS
P./NNP
James/NNP
Kartalia/NNP
,/,
vice/NN
president/NN
of/IN
ANB/NNP
Investment/NNP
Management/NNP
Co./NNP
,/,
Chicago/NNP
,/,
which/WDT
offers/VBZ
both/DT
indexing/NN
and/CC
active/JJ
management/NN
services/NNS
./.
size/NN
in/IN
the/DT
past/JJ
five/CD
years/NNS
,/,
index/NN
funds/NNS
now/RB
hold/VBP
about/RB
20/CD
%/NN
of/IN
the/DT
stock/NN
owned/VBN
by/IN
pension/NN
funds/NNS
./.
A/DT
further/JJ
problem/NN
is/VBZ
razor-thin/JJ
profits/NNS
./.
Plain-vanilla/JJ
funds/NNS
have/VBP
become/VBN
so/RB
commonplace/JJ
that/IN
fees/NNS
they/PRP
can/MD
charge/VB
have/VBP
plunged/VBN
to/TO
almost/RB
nothing/NN
,/,
and/CC
in/IN
some/DT
cases/NNS
are/VBP
just/RB
that/DT
./.
To/TO
land/VB
customers/NNS
for/IN
their/PRP$
well-paying/JJ
stock/NN
custodial/JJ
business/NN
,/,
big/JJ
banks/NNS
sometimes/RB
will/MD
throw/VB
in/RP
basic/JJ
indexing/NN
services/NNS
for/IN
free/JJ
./.
``/``
It/PRP
's/VBZ
like/IN
getting/VBG
a/DT
free/JJ
toaster/NN
when/WRB
you/PRP
open/VBP
an/DT
account/NN
,/,
''/''
says/VBZ
Axe/NNP
Core/NNP
's/POS
Mr./NNP
Lynn/NNP
./.
As/IN
a/DT
result/NN
,/,
indexers/NNS
have/VBP
been/VBN
looking/VBG
for/IN
ways/NNS
to/TO
give/VB
investors/NNS
something/NN
more/JJR
than/IN
the/DT
average/NN
for/IN
their/PRP$
money/NN
./.
And/CC
many/JJ
have/VBP
been/VBN
successful/JJ
,/,
as/IN
in/IN
the/DT
case/NN
of/IN
the/DT
index/NN
fund/NN
operated/VBN
by/IN
hyper-trader/NN
Westridge/NNP
Capital/NNP
./.
Westridge/NNP
Capital/NNP
has/VBZ
used/VBN
enhanced/JJ
indexing/NN
techniques/NNS
to/TO
beat/VB
the/DT
S&P/NNP
500/CD
's/POS
returns/NNS
by/IN
2.5/CD
to/TO
3/CD
percentage/NN
points/NNS
over/IN
the/DT
past/JJ
four/CD
years/NNS
,/,
with/IN
the/DT
same/JJ
risk/NN
level/NN
as/IN
holding/VBG
the/DT
S&P/NNP
500/CD
stocks/NNS
,/,
according/VBG
to/TO
James/NNP
Carder/NNP
,/,
the/DT
firm/NN
's/POS
president/NN
./.
Strategies/NNS
vary/VBP
for/IN
Westridge/NNP
Capital/NNP
,/,
which/WDT
has/VBZ
$/$
300/CD
million/CD
under/IN
management/NN
./.
The/DT
firm/NN
sometimes/RB
buys/VBZ
S&P/NNP
500/CD
futures/NNS
when/WRB
they/PRP
are/VBP
selling/VBG
at/IN
a/DT
discount/NN
to/TO
the/DT
actual/JJ
stocks/NNS
,/,
and/CC
will/MD
switch/VB
back/RB
and/CC
forth/RB
between/IN
stocks/NNS
and/CC
stock-index/JJ
futures/NNS
to/TO
take/VB
advantages/NNS
of/IN
any/DT
momentary/JJ
price/NN
discrepencies/NNS
./.
Mr./NNP
Carder/NNP
also/RB
goes/VBZ
through/IN
periods/NNS
when/WRB
he/PRP
buys/VBZ
stocks/NNS
in/IN
conjunction/NN
with/IN
options/NNS
to/TO
boost/VB
returns/NNS
and/CC
protect/VB
against/IN
declines/NNS
./.
And/CC
in/IN
some/DT
months/NNS
,/,
he/PRP
buys/VBZ
stock-index/JJ
futures/NNS
and/CC
not/RB
stocks/NNS
at/IN
all/DT
./.
``/``
By/IN
their/PRP$
nature/NN
,/,
our/PRP$
trades/NNS
are/VBP
very/RB
short-term/JJ
and/CC
are/VBP
going/VBG
to/TO
create/VB
high/JJ
turnover/NN
,/,
''/''
Mr./NNP
Carder/NNP
adds/VBZ
./.
``/``
The/DT
more/JJR
turnover/NN
,/,
the/DT
better/JJR
for/IN
our/PRP$
clients/NNS
./.
''/''
Big/JJ
indexer/NN
Bankers/NNP
Trust/NNP
Co./NNP
also/RB
uses/VBZ
futures/NNS
in/IN
a/DT
strategy/NN
that/IN
on/IN
average/NN
has/VBZ
added/VBN
one/CD
percentage/NN
point/NN
to/TO
its/PRP$
enhanced/JJ
fund/NN
's/POS
returns/NNS
./.
J./NNP
Thomas/NNP
Allen/NNP
,/,
president/NN
of/IN
Pittsburgh-based/JJ
Advanced/NNP
Investment/NNP
Management/NNP
Inc./NNP
,/,
agrees/VBZ
it/PRP
's/VBZ
a/DT
good/JJ
idea/NN
to/TO
jump/VB
between/IN
the/DT
S&P/NNP
500/CD
stocks/NNS
and/CC
futures/NNS
./.
``/``
You/PRP
're/VBP
buying/VBG
the/DT
S&P/NNP
,/,
and/CC
you/PRP
always/RB
want/VBP
to/TO
hold/VB
the/DT
cheapest/JJS
form/NN
of/IN
it/PRP
,/,
''/''
he/PRP
says/VBZ
./.
But/CC
some/DT
indexers/NNS
make/VBP
little/JJ
or/CC
no/DT
use/NN
of/IN
futures/NNS
,/,
saying/VBG
that/IN
these/DT
instruments/NNS
present/VBP
added/VBN
risks/NNS
for/IN
investors/NNS
./.
``/``
If/IN
the/DT
futures/NNS
markets/NNS
have/VBP
a/DT
problem/NN
,/,
then/RB
those/DT
products/NNS
could/MD
have/VB
a/DT
problem/NN
,/,
''/''
says/VBZ
John/NNP
Zumbrunn/NNP
,/,
managing/VBG
director/NN
of/IN
Prudential/NNP
Insurance/NNP
Co./NNP
of/IN
America/NNP
's/POS
Investment/NNP
Index/NNP
Technologies/NNP
Inc./NNP
unit/NN
./.
Prudential/NNP
currently/RB
is/VBZ
seeking/VBG
approval/NN
to/TO
offer/VB
a/DT
new/JJ
fund/NN
offering/VBG
a/DT
return/NN
equal/JJ
to/TO
the/DT
S&P/NNP
500/CD
index/NN
plus/IN
5\/100/CD
of/IN
a/DT
percentage/NN
point/NN
./.
An/DT
added/VBN
feature/NN
is/VBZ
that/IN
the/DT
slighty/NN
improved/VBD
return/NN
would/MD
be/VB
guaranteed/VBN
by/IN
Prudential/NNP
./.
There/EX
are/VBP
many/JJ
other/JJ
strategies/NNS
to/TO
bolster/VB
the/DT
returns/NNS
of/IN
index/NN
funds/NNS
./.
They/PRP
include/VBP
:/:
LIMITED/JJ
RISK/NN

FUNDS/NNS
:/:
These/DT
guarantee/VBP
protection/NN
against/IN
stock/NN
market/NN
declines/NNS
while/IN
still/RB
passing/VBG
along/RB
most/JJS
gains/NNS
./.
Here/RB
a/DT
fund/NN
may/MD
promise/VB
to/TO
pay/VB
back/RB
,/,
say/VB
,/,
$/$
95/CD
of/IN
every/DT
$/$
100/CD
invested/VBN
for/IN
a/DT
year/NN
,/,
even/RB
if/IN
the/DT
market/NN
goes/VBZ
much/RB
lower/RBR
./.
The/DT
fund/NN
could/MD
invest/VB
$/$
87/CD
for/IN
one/CD
year/NN
in/IN
Treasury/NNP
bills/NNS
yielding/VBG
8/CD
%/NN
to/TO
return/VB
the/DT
guaranteed/VBN
$/$
95/CD
./.
That/DT
leaves/VBZ
$/$
13/CD
,/,
which/WDT
could/MD
be/VB
used/VBN
to/TO
buy/VB
S&P/NNP
500/CD
options/NNS
that/WDT
will/MD
nearly/RB
match/VB
any/DT
gain/NN
in/IN
the/DT
S&P/NNP
index/NN
./.
MANAGER/NN
REPLICATION/NN
FUNDS/NNS
:/:
Say/VB
a/DT
big/JJ
investor/NN
is/VBZ
interested/JJ
in/IN
growth/NN
stocks/NNS
./.
Instead/RB
of/IN
hiring/VBG
one/CD
of/IN
the/DT
many/JJ
active/JJ
managers/NNS
specializing/VBG
in/IN
growth/NN
stocks/NNS
,/,
indexers/NNS
can/MD
design/VB
a/DT
portfolio/NN
around/IN
the/DT
same/JJ
stocks/NNS
;/:
the/DT
portfolio/NN
will/MD
be/VB
maintained/VBN
by/IN
computer/NN
,/,
reducing/VBG
both/DT
fees/NNS
and/CC
,/,
in/IN
theory/NN
,/,
risk/NN
the/DT
large/JJ
number/NN
of/IN
stocks/NNS
``/``
We/PRP
see/VBP
a/DT
lot/NN
of/IN
interest/NN
in/IN
those/DT
kind/NN
of/IN
things/NNS
,/,
''/''
says/VBZ
Frank/NNP
Salerno/NNP
,/,
a/DT
vice/NN
president/NN
of/IN
Bankers/NNP
Trust/NNP
./.
``/``
People/NNS
comfortable/JJ
with/IN
the/DT
passive/JJ
approach/NN
are/VBP
using/VBG
them/PRP
for/IN
other/JJ
strategies/NNS
./.
''/''
TILT/NN
FUNDS/NNS
:/:
This/DT
is/VBZ
an/DT
index/NN
fund/NN
with/IN
a/DT
bet/NN
./.
Instead/RB
of/IN
replicating/VBG
the/DT
S&P/NNP
500/CD
or/CC
some/DT
other/JJ
index/NN
exactly/RB
,/,
some/DT
stocks/NNS
are/VBP
overweighted/VBN
or/CC
underweighted/VBN
in/IN
the/DT
portfolio/NN
./.
One/CD
simple/JJ
approach/NN
is/VBZ
to/TO
exclude/VB
S&P/NNP
500/CD
companies/NNS
considered/VBN
bankruptcy/NN
candidates/NNS
;/:
this/DT
can/MD
avoid/VB
weak/JJ
sisters/NNS
,/,
but/CC
also/RB
can/MD
hurt/VB
when/WRB
a/DT
company/NN
like/IN
Chrysler/NNP
Corp./NNP
rebounds/NNS
./.
Another/DT
approach/NN
:/:
An/DT
investor/NN
with/IN
$/$
100/CD
million/CD
might/MD
use/VB
$/$
75/CD
million/CD
to/TO
buy/VB
the/DT
S&P/NNP
500/CD
index/NN
and/CC
spend/VB
the/DT
other/JJ
$/$
25/CD
million/CD
on/IN
a/DT
favorite/JJ
group/NN
of/IN
stocks/NNS
./.
SPECIALIZED/JJ
FUNDS/NNS
:/:
Indexes/NNS
can/MD
be/VB
constructed/VBN
to/TO
serve/VB
social/JJ
goals/NNS
,/,
such/JJ
as/IN
eliminating/VBG
the/DT
stocks/NNS
of/IN
companies/NNS
doing/VBG
business/NN
in/IN
South/NNP
Africa/NNP
./.
Other/JJ
funds/NNS
have/VBP
been/VBN
designed/VBN
to/TO
concentrate/VB
on/IN
stocks/NNS
in/IN
a/DT
geographic/JJ
area/NN
in/IN
order/NN
to/TO
encourage/VB
local/JJ
investment/NN
./.
Pennsylvania/NNP
State/NNP
Employees/NNP
Retirement/NNP
System/NNP
,/,
for/IN
example/NN
,/,
has/VBZ
about/RB
$/$
130/CD
million/CD
invested/VBN
in/IN
a/DT
fund/NN
of/IN
244/CD
companies/NNS
that/WDT
are/VBP
either/DT
Pennsylvania-based/JJ
or/CC
have/VBP
25/CD
%/NN
of/IN
their/PRP$
work/NN
forces/NNS
in/IN
the/DT
state/NN
./.
Short/JJ
interest/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
declined/VBD
for/IN
the/DT
second/JJ
consecutive/JJ
month/NN
,/,
this/DT
time/NN
4.2/CD
%/NN
,/,
while/IN
the/DT
American/NNP
Stock/NNP
Exchange/NNP
reported/VBD
its/PRP$
third/JJ
consecutive/JJ
record/NN
month/NN
of/IN
short/JJ
interest/NN
./.
The/DT
Big/NNP
Board/NNP
reported/VBD
that/DT
short/JJ
interest/NN
dropped/VBD
to/TO
523,920,214/CD
shares/NNS
as/IN
of/IN
Oct./NNP
13/CD
from/IN
547,347,585/CD
shares/NNS
in/IN
mid-September/NN
./.
Amex/NNP
short/JJ
interest/NN
climbed/VBD
3/CD
%/NN
to/TO
53,496,665/CD
shares/NNS
from/IN
51,911,566/CD
shares/NNS
./.
For/IN
the/DT
year-earlier/JJ
month/NN
,/,
the/DT
Big/NNP
Board/NNP
reported/VBD
461,539,056/CD
shares/NNS
,/,
indicating/VBG
a/DT
13.5/CD
%/NN
year-to-year/JJ
rise/NN
,/,
while/IN
the/DT
Amex/NNP
reported/VBN
36,015,194/CD
shares/NNS
,/,
a/DT
48/CD
%/NN
leap/NN
./.
Amex/NNP
short/JJ
interest/NN
has/VBZ
been/VBN
heading/VBG
upward/RB
since/IN
mid-December/NN
,/,
with/IN
increases/NNS
in/IN
each/DT
month/NN
since/IN
then/RB
except/IN
at/IN
mid-July/NN
./.
Traders/NNS
who/WP
sell/VBP
short/JJ
borrow/VBP
stock/NN
and/CC
sell/VBP
it/PRP
,/,
betting/VBG
that/IN
the/DT
stock/NN
's/POS
price/NN
will/MD
decline/VB
and/CC
that/IN
they/PRP
can/MD
buy/VB
the/DT
shares/NNS
back/RB
later/RBR
at/IN
a/DT
lower/JJR
price/NN
for/IN
return/NN
to/TO
the/DT
lender/NN
./.
Short/JJ
interest/NN
is/VBZ
the/DT
number/NN
of/IN
shares/NNS
that/WDT
have/VBP
n't/RB
yet/RB
been/VBN
purchased/VBN
for/IN
return/NN
to/TO
lenders/NNS
./.
Although/IN
a/DT
substantial/JJ
short/JJ
position/NN
reflects/VBZ
heavy/JJ
speculation/NN
that/IN
a/DT
stock/NN
's/POS
price/NN
will/MD
decline/VB
,/,
some/DT
investors/NNS
consider/VBP
an/DT
increase/NN
in/IN
short/JJ
interest/NN
bullish/JJ
because/IN
the/DT
borrowed/VBN
shares/NNS
eventually/RB
must/MD
be/VB
bought/VBN
back/RB
./.
Fluctuation/NN
in/IN
short/JJ
interest/NN
of/IN
certain/JJ
stocks/NNS
also/RB
may/MD
be/VB
caused/VBN
partly/RB
by/IN
arbitraging/VBG
./.
The/DT
figures/NNS
occasionally/RB
include/VBP
incomplete/JJ
transactions/NNS
in/IN
restricted/JJ
stock/NN
./.
The/DT
level/NN
of/IN
negative/JJ
sentiment/NN
measured/VBN
by/IN
the/DT
Big/NNP
Board/NNP
short/JJ
interest/NN
ratio/NN
slipped/VBD
to/TO
3.36/CD
from/IN
last/JJ
month/NN
's/POS
3.38/CD
./.
The/DT
ratio/NN
is/VBZ
the/DT
number/NN
of/IN
trading/NN
days/NNS
,/,
at/IN
the/DT
exchange/NN
's/POS
average/JJ
trading/NN
volume/NN
,/,
that/WDT
would/MD
be/VB
required/VBN
to/TO
convert/VB
the/DT
total/JJ
short/JJ
interest/NN
position/NN
./.
Some/DT
analysts/NNS
suggest/VBP
,/,
however/RB
,/,
that/IN
the/DT
ratio/NN
has/VBZ
weakened/VBN
in/IN
value/NN
as/IN
an/DT
indicator/NN
because/IN
options/NNS
and/CC
other/JJ
products/NNS
can/MD
be/VB
used/VBN
to/TO
hedge/VB
short/JJ
positions/NNS
./.
Varity/NNP
Corp./NNP
led/VBD
the/DT
Big/NNP
Board/NNP
list/NN
of/IN
largest/JJS
short/JJ
volumes/NNS
with/IN
12,822,563/CD
shares/NNS
./.
Varity/NNP
has/VBZ
proposed/VBN
to/TO
acquire/VB
K-H/NNP
Corp./NNP
,/,
consisting/VBG
of/IN
the/DT
auto/NN
parts/NNS
division/NN
and/CC
some/DT
debt/NN
of/IN
Fruehauf/NNP
Corp./NNP
,/,
for/IN
$/$
577.3/CD
million/CD
of/IN
cash/NN
and/CC
securities/NNS
./.
Chemical/NNP
Waste/NNP
Management/NNP
posted/VBD
the/DT
biggest/JJS
increase/NN
in/IN
short/JJ
volume/NN
on/IN
the/DT
New/NNP
York/NNP
exchange/NN
,/,
up/RB
3,383,477/CD
shares/NNS
to/TO
5,267,238/CD
./.
Bristol-Myers/NNP
Squibb/NNP
Co./NNP
,/,
the/DT
entity/NN
formed/VBN
from/IN
the/DT
recent/JJ
acquisition/NN
of/IN
Squibb/NNP
Corp./NNP
by/IN
Bristol-Myers/NNP
Co./NNP
,/,
logged/VBD
the/DT
largest/JJS
volume/NN
decline/NN
,/,
7,592,988/CD
shares/NNS
,/,
to/TO
12,017,724/CD
./.
Short/JJ
interest/NN
in/IN
International/NNP
Business/NNP
Machines/NNP
Corp./NNP
plunged/VBD
to/TO
1,425,035/CD
shares/NNS
from/IN
2,387,226/CD
shares/NNS
a/DT
month/NN
earlier/RBR
./.
Also/RB
closely/RB
watched/VBN
is/VBZ
Exxon/NNP
Corp./NNP
,/,
where/WRB
short/JJ
interest/NN
slid/VBD
to/TO
4,469,167/CD
shares/NNS
from/IN
5,088,774/CD
./.
On/IN
a/DT
percentage/NN
basis/NN
,/,
Germany/NNP
Fund/NNP
Inc./NNP
led/VBD
the/DT
gainers/NNS
,/,
leaping/VBG
to/TO
67,972/CD
shares/NNS
from/IN
three/CD
shares/NNS
./.
TransCanada/NNP
PipeLines/NNP
Ltd./NNP
led/VBD
the/DT
percentage/NN
decliners/NNS
,/,
dropping/VBG
to/TO
59/CD
shares/NNS
from/IN
183,467/CD
./.
The/DT
Amex/NNP
short/JJ
interest/NN
volume/NN
leader/NN
again/RB
was/VBD
Texas/NNP
Air/NNP
Corp./NNP
,/,
rising/VBG
to/TO
3,820,634/CD
shares/NNS
from/IN
3,363,949/CD
./.
Bolar/NNP
Pharmaceutical/NNP
Co./NNP
posted/VBD
the/DT
largest/JJS
volume/NN
increase/NN
,/,
552,302/CD
shares/NNS
,/,
to/TO
2,157,656/CD
./.
The/DT
company/NN
is/VBZ
under/IN
an/DT
investigation/NN
concerning/VBG
procedures/NNS
to/TO
gain/VB
Food/NNP
and/CC
Drug/NNP
Administration/NNP
approval/NN
of/IN
generic/JJ
drugs/NNS
./.
Bolar/NNP
has/VBZ
denied/VBN
any/DT
wrongdoing/NN
./.
The/DT
largest/JJS
volume/NN
drop/NN
--/:
down/RB
445,645/CD
shares/NNS
to/TO
141,903/CD
--/:
came/VBD
in/IN
shares/NNS
represented/VBN
by/IN
B.A.T/NNP
Industries/NNP
PLC/NNP
's/POS
American/JJ
depositary/NN
receipts/NNS
./.
The/DT
company/NN
is/VBZ
facing/VBG
a/DT
takeover/NN
proposal/NN
from/IN
the/DT
financier/NN
Sir/NNP
James/NNP
Goldsmith/NNP
./.
First/NNP
Iberian/NNP
Fund/NNP
led/VBD
the/DT
percentage/NN
increases/NNS
,/,
rising/VBG
to/TO
73,100/CD
shares/NNS
from/IN
184/CD
./.
Nelson/NNP
Holdings/NNP
International/NNP
Ltd./NNP
dropped/VBD
the/DT
most/JJS
on/IN
a/DT
percentage/NN
basis/NN
,/,
to/TO
1,000/CD
shares/NNS
from/IN
255,923/CD
./.
The/DT
adjacent/JJ
tables/NNS
show/VBP
the/DT
Big/NNP
Board/NNP
and/CC
Amex/NNP
issues/NNS
in/IN
which/WDT
a/DT
short/JJ
interest/NN
position/NN
of/IN
at/IN
least/JJS
100,000/CD
shares/NNS
existed/VBD
as/IN
of/IN
mid-October/NN
or/CC
in/IN
which/WDT
there/EX
was/VBD
a/DT
short/JJ
position/NN
change/NN
of/IN
at/IN
least/JJS
50,000/CD
shares/NNS
since/IN
mid-September/NN
./.
Your/PRP$
Oct./NNP
12/CD
editorial/NN
``/``
Pitiful/NNP
,/,
Helpless/NNP
Presidency/NNP
?/.
''/''
correctly/RB
states/VBZ
that/IN
I/PRP
was/VBD
critical/JJ
of/IN
the/DT
Bush/NNP
administration/NN
's/POS
failure/NN
to/TO
have/VB
any/DT
plan/NN
in/IN
place/NN
to/TO
respond/VB
in/IN
a/DT
timely/JJ
fashion/NN
to/TO
the/DT
opportunities/NNS
to/TO
oust/VB
Manuel/NNP
Noriega/NNP
presented/VBD
by/IN
the/DT
attempted/VBN
military/JJ
coup/NN
on/IN
Oct./NNP
3/CD
./.
You/PRP
are/VBP
absolutely/RB
wrong/JJ
,/,
however/RB
,/,
in/IN
opining/VBG
that/IN
this/DT
position/NN
is/VBZ
some/DT
kind/NN
of/IN
``/``
flip-flop/JJ
,/,
''/''
something/NN
newly/RB
arrived/VBD
at/IN
as/IN
a/DT
result/NN
of/IN
reading/VBG
the/DT
opinion/NN
polls/NNS
./.
My/PRP$
position/NN
is/VBZ
one/CD
founded/VBN
on/IN
both/DT
the/DT
facts/NNS
and/CC
the/DT
law/NN
./.
Although/IN
you/PRP
may/MD
have/VB
forgotten/VBN
,/,
public/JJ
opinion/NN
about/IN
Gen./NNP
Noriega/NNP
is/VBZ
where/WRB
it/PRP
is/VBZ
in/IN
large/JJ
measure/NN
because/IN
of/IN
my/PRP$
investigation/NN
of/IN
his/PRP$
years/NNS
of/IN
involvement/NN
in/IN
narcotics/NNS
smuggling/NN
(/(
and/CC
simultaneous/JJ
work/NN
as/IN
a/DT
U.S./NNP
operative/NN
The/DT
public/NN
made/VBD
up/RP
its/PRP$
mind/NN
about/IN
Gen./NNP
Noriega/NNP
largely/RB
as/IN
a/DT
result/NN
of/IN
the/DT
hearings/NNS
I/PRP
chaired/VBD
in/IN
the/DT
Subcommittee/NNP
on/IN
Terrorism/NNP
and/CC
Narcotics/NNP
of/IN
the/DT
Foreign/NNP
Relations/NNP
Committee/NNP
on/IN
Feb./NNP
8/CD
,/,
9/CD
,/,
10/CD
and/CC
11/CD
,/,
1988/CD
,/,
and/CC
again/RB
on/IN
April/NNP
4/CD
,/,
1988/CD
./.
It/PRP
was/VBD
during/IN
those/DT
hearings/NNS
that/IN
the/DT
nation/NN
first/RB
learned/VBD
the/DT
breadth/NN
and/CC
depth/NN
of/IN
Gen./NNP
Noriega/NNP
's/POS
criminality/NN
,/,
and/CC
of/IN
his/PRP$
enduring/VBG
relationships/NNS
with/IN
a/DT
variety/NN
of/IN
U.S./NNP
government/NN
agencies/NNS
./.
Those/DT
hearings/NNS
also/RB
highlighted/VBD
how/WRB
Gen./NNP
Noriega/NNP
was/VBD
able/JJ
to/TO
use/VB
his/PRP$
relationships/NNS
with/IN
these/DT
agencies/NNS
to/TO
delay/VB
U.S./NNP
action/NN
against/IN
him/PRP
,/,
and/CC
to/TO
exploit/VB
the/DT
administration/NN
's/POS
obsession/NN
with/IN
overthrowing/VBG
the/DT
Sandinistas/NNS
to/TO
protect/VB
his/PRP$
own/JJ
drug-dealing/NN
./.
As/IN
former/JJ
Ambassador/NNP
to/TO
Costa/NNP
Rica/NNP
Francis/NNP
J./NNP
McNeil/NNP
testified/VBD
before/IN
the/DT
subcommittee/NN
,/,
the/DT
Reagan/NNP
administration/NN
knew/VBD
that/IN
Gen./NNP
Noriega/NNP
was/VBD
involved/VBN
with/IN
narcotics/NNS
,/,
but/CC
made/VBD
a/DT
decision/NN
in/IN
the/DT
summer/NN
of/IN
1986/CD
``/``
to/TO
put/VB
Gen./NNP
Noriega/NNP
on/IN
the/DT
shelf/NN
until/IN
Nicaragua/NNP
was/VBD
settled/VBN
./.
''/''
As/IN
the/DT
report/NN
issued/VBN
by/IN
the/DT
subcommittee/NN
concluded/VBD
,/,
``/``
Our/PRP$
government/NN
did/VBD
nothing/NN
regarding/VBG
Gen./NNP
Noriega/NNP
's/POS
drug/NN
business/NN
and/CC
substantial/JJ
criminal/JJ
involvement/NN
because/IN
the/DT
first/JJ
priority/NN
was/VBD
the/DT
Contra/NNP
war/NN
./.
This/DT
decision/NN
resulted/VBD
in/IN
at/IN
least/JJS
some/DT
drugs/NNS
entering/VBG
the/DT
United/NNP
States/NNP
as/IN
a/DT
hidden/JJ
cost/NN
of/IN
the/DT
war/NN
./.
''/''
Unfortunately/RB
,/,
this/DT
problem/NN
continued/VBD
even/RB
after/RB
Gen./NNP
Noriega/NNP
's/POS
indictment/NN
./.
Throughout/IN
1988/CD
and/CC
this/DT
year/NN
,/,
I/PRP
and/CC
others/NNS
in/IN
Congress/NNP
have/VBP
pressed/VBN
the/DT
U.S./NNP
to/TO
develop/VB
a/DT
plan/NN
for/IN
pushing/VBG
this/DT
``/``
narcokleptocrat/NN
''/''
out/IN
of/IN
Panama/NNP
./.
Regrettably/RB
,/,
two/CD
administrations/NNS
in/IN
a/DT
row/NN
have/VB
been/VBN
unwilling/JJ
and/CC
unable/JJ
to/TO
develop/VB
any/DT
plan/NN
,/,
military/JJ
or/CC
economic/JJ
,/,
for/IN
supporting/VBG
the/DT
Panamanian/JJ
people/NNS
in/IN
their/PRP$
attempts/NNS
to/TO
restore/VB
democracy/NN
./.
Sen./NNP
John/NNP
Kerry/NNP
D./NNP
,/,
Mass/NNP
./.
Washington/NNP
For/IN
Vietnamese/NNS
,/,
these/DT
are/VBP
tricky/JJ
,/,
often/RB
treacherous/JJ
,/,
times/NNS
./.
After/IN
years/NNS
of/IN
hesitation/NN
,/,
economic/JJ
and/CC
political/JJ
reform/NN
was/VBD
embraced/VBN
at/IN
the/DT
end/NN
of/IN
1986/CD
,/,
but/CC
ringing/VBG
declarations/NNS
have/VBP
yet/RB
to/TO
be/VB
translated/VBN
into/IN
much/JJ
action/NN
./.
Vietnam/NNP
is/VBZ
finding/VBG
that/IN
turning/VBG
a/DT
stagnant/JJ
socialist/JJ
order/NN
into/IN
a/DT
dynamic/JJ
free/JJ
market/NN
does/VBZ
n't/RB
come/VB
easy/RB
./.
Here/RB
is/VBZ
how/WRB
three/CD
Vietnamese/NNS
are/VBP
coping/VBG
with/IN
change/NN
:/:
The/DT
Tire/NN
King/NN
Nguyen/NNP
Van/NNP
Chan/NNP
is/VBZ
living/VBG
proof/NN
that/IN
old/JJ
ways/NNS
die/VBP
hard/JJ
./.
Mr./NNP
Chan/NNP
used/VBD
to/TO
be/VB
an/DT
oddity/NN
in/IN
Hanoi/NNP
:/:
a/DT
private/JJ
entrepreneur/NN
./.
His/PRP$
business/NN
success/NN
made/VBD
him/PRP
an/DT
official/JJ
target/NN
in/IN
pre-reform/JJ
days/NNS
./.
Mr./NNP
Chan/NNP
,/,
now/RB
64/CD
years/NNS
old/JJ
,/,
invented/VBD
a/DT
fountain/NN
pen/NN
he/PRP
and/CC
his/PRP$
family/NN
produced/VBD
from/IN
plastic/JJ
waste/NN
./.
Later/RB
,/,
he/PRP
marketed/VBD
glue/NN
./.
Both/DT
products/NNS
were/VBD
immensely/RB
popular/JJ
./.
For/IN
his/PRP$
troubles/NNS
,/,
Mr./NNP
Chan/NNP
was/VBD
jailed/VBN
three/CD
times/NNS
between/IN
1960/CD
and/CC
1974/CD
./.
Though/IN
his/PRP$
operation/NN
was/VBD
registered/VBN
and/CC
used/VBN
only/JJ
scrap/NN
,/,
he/PRP
was/VBD
accused/VBN
of/IN
conducting/VBG
illegal/JJ
business/NN
and/CC
possessing/VBG
illegal/JJ
materials/NNS
./.
Once/RB
he/PRP
was/VBD
held/VBN
for/IN
three/CD
months/NNS
without/IN
being/VBG
charged/VBN
./.
Things/NNS
were/VBD
supposed/VBN
to/TO
change/VB
when/WRB
Vietnam/NNP
's/POS
economic/JJ
reforms/NNS
gathered/VBD
pace/NN
,/,
and/CC
for/IN
awhile/RB
they/PRP
did/VBD
./.
After/IN
years/NNS
of/IN
experimenting/VBG
,/,
Mr./NNP
Chan/NNP
produced/VBD
a/DT
heavy-duty/JJ
bicycle/NN
tire/NN
that/WDT
outlasted/VBD
its/PRP$
state-produced/JJ
rival/NN
./.
By/IN
1982/CD
,/,
he/PRP
was/VBD
selling/VBG
thousands/NNS
of/IN
tires/NNS
./.
Newspapers/NNS
published/VBD
articles/NNS
about/IN
him/PRP
,/,
and/CC
he/PRP
was/VBD
hailed/VBN
as/IN
``/``
the/DT
tire/NN
king/NN
./.
''/''
His/PRP$
efforts/NNS
earned/VBD
a/DT
gold/JJ
medal/NN
at/IN
a/DT
national/JJ
exhibition/NN
--/:
and/CC
attracted/VBD
renewed/VBN
attention/NN
from/IN
local/JJ
authorities/NNS
./.
District/NN
police/NNS
in/IN
1983/CD
descended/VBD
on/IN
his/PRP$
suburban/JJ
home/NN
,/,
which/WDT
he/PRP
and/CC
his/PRP$
large/JJ
family/NN
used/VBD
as/IN
both/DT
residence/NN
and/CC
factory/NN
,/,
and/CC
demanded/VBD
proof/NN
the/DT
house/NN
and/CC
equipment/NN
were/VBD
his/PRP$
./.
He/PRP
produced/VBD
it/PRP
./.
``/``
That/DT
was/VBD
the/DT
first/JJ
time/NN
they/PRP
lost/VBD
and/CC
I/PRP
won/VBD
,/,
''/''
he/PRP
says/VBZ
./.
He/PRP
was/VBD
further/RBR
questioned/VBN
to/TO
determine/VB
if/IN
he/PRP
was/VBD
``/``
a/DT
real/JJ
working/VBG
man/NN
or/CC
an/DT
exploiter/NN
./.
''/''
Says/VBZ
Mr./NNP
Chan/NNP
:/:
``/``
When/WRB
I/PRP
showed/VBD
it/PRP
was/VBD
from/IN
my/PRP$
own/JJ
brain/NN
,/,
they/PRP
lost/VBD
for/IN
the/DT
second/JJ
time/NN
./.
''/''
But/CC
a/DT
few/JJ
days/NNS
later/RBR
the/DT
police/NN
accused/VBD
him/PRP
of/IN
stealing/VBG
electricity/NN
,/,
acquiring/VBG
rubber/NN
without/IN
permission/NN
and/CC
buying/VBG
stolen/VBN
property/NN
./.
Warned/VBD
he/PRP
was/VBD
to/TO
be/VB
jailed/VBN
again/RB
,/,
he/PRP
fled/VBD
to/TO
the/DT
countryside/NN
./.
His/PRP$
family/NN
was/VBD
given/VBN
three/CD
hours/NNS
to/TO
leave/VB
before/RB
the/DT
house/NN
and/CC
contents/NNS
were/VBD
confiscated/VBN
./.
With/IN
only/RB
the/DT
clothes/NNS
they/PRP
were/VBD
wearing/VBG
,/,
family/NN
members/NNS
moved/VBD
to/TO
a/DT
home/NN
owned/VBN
by/IN
one/CD
of/IN
Mr./NNP
Chan/NNP
's/POS
sons/NNS
./.
After/IN
six/CD
months/NNS
on/IN
the/DT
run/NN
,/,
Mr./NNP
Chan/NNP
learned/VBD
the/DT
order/NN
for/IN
his/PRP$
arrest/NN
had/VBD
been/VBN
canceled/VBN
./.
He/PRP
rejoined/VBD
his/PRP$
family/NN
in/IN
January/NNP
1984/CD
and/CC
began/VBD
the/DT
long/JJ
struggle/NN
for/IN
justice/NN
,/,
pressing/VBG
everyone/NN
from/IN
Hanoi/NNP
municipal/JJ
officials/NNS
to/TO
National/NNP
Assembly/NNP
deputies/NNS
for/IN
restoration/NN
of/IN
his/PRP$
rights/NNS
./.
He/PRP
and/CC
his/PRP$
family/NN
kept/VBD
afloat/RB
by/IN
repairing/VBG
bicycles/NNS
,/,
selling/VBG
fruit/NN
and/CC
doing/VBG
odd/JJ
jobs/NNS
./.
Mr./NNP
Chan/NNP
achieved/VBD
a/DT
breakthrough/NN
in/IN
1987/CD
--/:
and/CC
became/VBD
a/DT
minor/JJ
celebrity/NN
again/RB
--/:
when/WRB
his/PRP$
story/NN
was/VBD
published/VBN
in/IN
a/DT
weekly/JJ
newspaper/NN
./.
In/IN
1988/CD
,/,
18/CD
months/NNS
after/RB
the/DT
sixth/JJ
congress/NN
formally/RB
endorsed/VBD
family-run/JJ
private/JJ
enterprise/NN
,/,
district/NN
authorities/NNS
allowed/VBD
Mr./NNP
Chan/NNP
to/TO
resume/VB
work/NN
./.
By/IN
late/JJ
last/JJ
year/NN
he/PRP
was/VBD
invited/VBN
back/RB
as/IN
``/``
the/DT
tire/NN
king/NN
''/''
to/TO
display/VB
his/PRP$
products/NNS
at/IN
a/DT
national/JJ
exhibition/NN
./.
National/JJ
leaders/NNS
stopped/VBD
by/IN
his/PRP$
stand/NN
to/TO
commend/VB
his/PRP$
achievements/NNS
./.
Mr./NNP
Chan/NNP
now/RB
produces/VBZ
1,000/CD
bicycle/NN
and/CC
motorbike/NN
tires/VBZ
a/DT
month/NN
and/CC
1,000/CD
tins/NNS
of/IN
tire-patching/JJ
glue/NN
in/IN
the/DT
son/NN
's/POS
small/JJ
house/NN
./.
Eighteen/CD
people/NNS
pack/VBP
the/DT
house/NN
's/POS
two/CD
rooms/NNS
--/:
the/DT
Chans/NNS
,/,
four/CD
of/IN
their/PRP$
10/CD
children/NNS
with/IN
spouses/NNS
,/,
and/CC
eight/CD
of/IN
22/CD
grandchildren/NNS
./.
Most/JJS
sleep/VBP
on/IN
the/DT
floor/NN
./.
Come/VBN
daybreak/NN
,/,
eight/CD
family/NN
members/NNS
and/CC
two/CD
other/JJ
workers/NNS
unroll/VBP
a/DT
sheet/NN
of/IN
raw/JJ
rubber/NN
that/WDT
covers/VBZ
the/DT
floor/NN
of/IN
the/DT
house/NN
and/CC
spills/VBZ
out/IN
onto/IN
the/DT
street/NN
./.
The/DT
primitive/JJ
operations/NNS
also/RB
burst/VBP
out/IN
the/DT
back/JJ
door/NN
into/IN
a/DT
small/JJ
courtyard/NN
,/,
where/WRB
an/DT
ancient/JJ
press/NN
squeezes/VBZ
rubber/NN
solution/NN
into/IN
a/DT
flat/JJ
strip/NN
and/CC
newly/RB
made/VBN
tires/NNS
are/VBP
cooled/VBN
in/IN
a/DT
bathtub/NN
filled/VBN
with/IN
water/NN
./.
Mr./NNP
Chan/NNP
talks/VBZ
optimistically/RB
of/IN
expanding/VBG
,/,
maybe/RB
even/RB
moving/VBG
into/IN
the/DT
import-export/JJ
field/NN
./.
First/RB
,/,
however/RB
,/,
he/PRP
has/VBZ
unfinished/JJ
business/NN
./.
When/WRB
district/NN
authorities/NNS
allowed/VBD
him/PRP
to/TO
resume/VB
manufacturing/VBG
,/,
they/PRP
released/VBD
only/RB
one/CD
of/IN
his/PRP$
machines/NNS
./.
They/PRP
did/VBD
n't/RB
return/VB
the/DT
rubber/NN
stocks/NNS
that/WDT
represent/VBP
his/PRP$
capital/NN
./.
Nor/CC
did/VBD
they/PRP
return/VB
his/PRP$
house/NN
and/CC
contents/NNS
,/,
which/WDT
he/PRP
values/VBZ
at/IN
about/RB
$/$
44,000/CD
./.
He/PRP
wants/VBZ
to/TO
recover/VB
more/JJR
than/IN
just/RB
his/PRP$
property/NN
,/,
though/RB
./.
``/``
I/PRP
want/VBP
my/PRP$
dignity/NN
back/RB
,/,
''/''
he/PRP
says/VBZ
./.
The/DT
Editor/NNP
Nguyen/NNP
Ngoc/NNP
seemed/VBD
an/DT
obvious/JJ
choice/NN
when/WRB
the/DT
Vietnamese/NNP
Writers/NNP
Association/NNP
was/VBD
looking/VBG
for/IN
a/DT
new/JJ
editor/NN
to/TO
reform/VB
its/PRP$
weekly/JJ
newspaper/NN
,/,
Van/NNP
Nghe/NNP
./.
After/IN
the/DT
sixth/JJ
congress/NN
,/,
journalists/NNS
seized/VBD
the/DT
opportunity/NN
provided/VBN
by/IN
the/DT
liberalization/NN
to/TO
probe/VB
previously/RB
taboo/JJ
subjects/NNS
./.
Mr./NNP
Ngoc/NNP
,/,
57/CD
years/NNS
old/JJ
,/,
had/VBD
solid/JJ
reformist/JJ
credentials/NNS
:/:
He/PRP
had/VBD
lost/VBN
his/PRP$
official/JJ
position/NN
in/IN
the/DT
association/NN
in/IN
he/PRP
early/RB
1980s/NNS
because/IN
he/PRP
questioned/VBD
the/DT
intrusion/NN
of/IN
politics/NNS
into/IN
literature/NN
./.
Appointed/VBN
editor/NN
in/IN
chief/NN
in/IN
July/NNP
1987/CD
,/,
Mr./NNP
Ngoc/NNP
rapidly/RB
turned/VBD
the/DT
staid/JJ
Van/NNP
Nghe/NNP
into/IN
Vietnam/NNP
's/POS
hottest/JJS
paper/NN
./.
Circulation/NN
soared/VBD
as/IN
the/DT
weekly/NN
went/VBD
way/NN
beyond/IN
standard/JJ
literary/JJ
themes/NNS
to/TO
cover/VB
Vietnamese/JJ
society/NN
and/CC
its/PRP$
ills/NNS
./.
Readers/NNS
were/VBD
electrified/VBN
by/IN
the/DT
paper/NN
's/POS
audacity/NN
and/CC
appalled/VBN
by/IN
the/DT
dark/JJ
side/NN
of/IN
life/NN
it/PRP
uncovered/VBD
./.
One/CD
article/NN
recounted/VBD
a/DT
decade-long/JJ
struggle/NN
by/IN
a/DT
wounded/VBN
soldier/NN
to/TO
prove/VB
,/,
officially/RB
,/,
he/PRP
was/VBD
alive/JJ
./.
Another/DT
described/VBD
how/WRB
tax-collection/JJ
officials/NNS
in/IN
Thanh/NNP
Hoa/NNP
province/NN
one/CD
night/NN
stormed/VBD
through/IN
homes/NNS
and/CC
confiscated/VBD
rice/NN
from/IN
starving/VBG
villagers/NNS
./.
The/DT
newspaper/NN
also/RB
ran/VBD
a/DT
series/NN
of/IN
controversial/JJ
short/JJ
stories/NNS
by/IN
Nguyen/NNP
Huy/NNP
Thiep/NNP
,/,
a/DT
former/JJ
history/NN
teacher/NN
,/,
who/WP
stirred/VBD
debate/NN
over/IN
his/PRP$
interpretation/NN
of/IN
Vietnamese/JJ
culture/NN
and/CC
took/VBD
a/DT
thinly/RB
veiled/VBN
swipe/NN
at/IN
writers/NNS
who/WP
had/VBD
blocked/VBN
his/PRP$
entry/NN
into/IN
their/PRP$
official/JJ
association/NN
./.
Van/NNP
Nghe/NNP
quickly/RB
made/VBD
influential/JJ
enemies/NNS
./.
``/``
Those/DT
who/WP
manage/VBP
ideology/NN
and/CC
a/DT
large/JJ
number/NN
of/IN
writers/NNS
reacted/VBD
badly/RB
''/''
to/TO
the/DT
restyled/VBN
paper/NN
,/,
says/VBZ
Lai/NNP
Nguyen/NNP
An/NNP
,/,
a/DT
literary/JJ
critic/NN
./.
After/IN
months/NNS
of/IN
internal/JJ
rumblings/NNS
,/,
Mr./NNP
Ngoc/NNP
was/VBD
fired/VBN
last/JJ
December/NNP
./.
His/PRP$
dismissal/NN
triggered/VBD
a/DT
furor/NN
among/IN
intellectuals/NNS
that/WDT
continues/VBZ
today/NN
./.
``/``
Under/IN
Mr./NNP
Ngoc/NNP
,/,
Van/NNP
Nghe/NNP
protected/VBD
the/DT
people/NNS
instead/RB
of/IN
the/DT
government/NN
,/,
''/''
says/VBZ
Nguyen/NNP
Duy/NNP
,/,
a/DT
poet/NN
who/WP
is/VBZ
the/DT
paper/NN
's/POS
bureau/NN
chief/NN
for/IN
southern/JJ
Vietnam/NNP
./.
``/``
The/DT
paper/NN
reflected/VBD
the/DT
truth/NN
./.
For/IN
the/DT
leadership/NN
,/,
that/WDT
was/VBD
too/RB
painful/JJ
to/TO
bear/VB
./.
''/''
The/DT
`/``
Billionaire/NN
'/''
Nguyen/NNP
Thi/NNP
Thi/NNP
is/VBZ
Vietnam/NNP
's/POS
entrepreneur/NN
of/IN
the/DT
1980s/CD
./.
Her/PRP$
challenge/NN
is/VBZ
to/TO
keep/VB
her/PRP$
fledgling/NN
empire/NN
on/IN
top/NN
in/IN
the/DT
1990s/CD
./.
Mrs./NNP
Thi/NNP
did/VBD
n't/RB
wait/VB
for/IN
the/DT
reforms/NNS
to/TO
get/VB
her/PRP$
start/NN
./.
She/PRP
charged/VBD
ahead/RB
of/IN
the/DT
government/NN
and/CC
the/DT
law/NN
to/TO
establish/VB
Hochiminh/NNP
City/NNP
Food/NNP
Co./NNP
as/IN
the/DT
biggest/JJS
rice/NN
dealer/NN
in/IN
the/DT
country/NN
./.
Her/PRP$
success/NN
,/,
which/WDT
included/VBD
alleviating/VBG
an/DT
urban/JJ
food/NN
shortage/NN
in/IN
the/DT
early/JJ
1980s/CD
,/,
helped/VBD
persuade/VB
Hanoi/NNP
to/TO
take/VB
the/DT
reform/NN
path/NN
./.
Her/PRP$
story/NN
is/VBZ
becoming/VBG
part/NN
of/IN
local/JJ
folklore/NN
./.
A/DT
lifelong/JJ
revolutionary/NN
with/IN
little/JJ
education/NN
who/WP
fought/VBD
both/DT
the/DT
French/NNS
and/CC
the/DT
U.S.-backed/JJ
Saigon/NNP
regime/NN
,/,
she/PRP
switched/VBD
effortlessly/RB
to/TO
commerce/NN
after/IN
the/DT
war/NN
./.
Her/PRP$
instincts/NNS
were/VBD
capitalistic/JJ
,/,
despite/IN
her/PRP$
background/NN
./.
As/IN
she/PRP
rode/VBD
over/IN
regulations/NNS
,/,
only/RB
her/PRP$
friendship/NN
with/IN
party/NN
leaders/NNS
,/,
including/VBG
Nguyen/NNP
Van/NNP
Linh/NNP
,/,
then/RB
Ho/NNP
Chi/NNP
Minh/NNP
City/NNP
party/NN
secretary/NN
,/,
kept/VBD
her/PRP
out/IN
of/IN
jail/NN
./.
Following/VBG
Mr./NNP
Linh/NNP
's/POS
appointment/NN
as/IN
secretary-general/JJ
of/IN
the/DT
party/NN
at/IN
the/DT
sixth/JJ
congress/NN
,/,
Mrs./NNP
Thi/NNP
has/VBZ
become/VBN
the/DT
darling/NN
of/IN
``/``
doi/FW
moi/FW
''/''
,/,
the/DT
Vietnamese/JJ
version/NN
of/IN
perestroika/FW
./.
The/DT
authorities/NNS
have/VBP
steered/VBN
foreign/JJ
reporters/NNS
to/TO
her/PRP$
office/NN
to/TO
see/VB
an/DT
example/NN
of/IN
``/``
the/DT
new/JJ
way/NN
of/IN
thinking/NN
./.
''/''
Foreign/JJ
publications/NNS
have/VBP
responded/VBN
with/IN
articles/NNS
declaring/VBG
her/PRP$
Vietnam/NNP
's/POS
richest/JJS
woman/NN
./.
``/``
Some/DT
people/NNS
call/VBP
me/PRP
the/DT
communist/JJ
billionaire/NN
,/,
''/''
she/PRP
has/VBZ
told/VBN
visitors/NNS
./.
Actually/RB
,/,
67-year-old/JJ
Mrs./NNP
Thi/NNP
is/VBZ
about/RB
as/RB
poor/JJ
as/IN
almost/RB
everyone/NN
else/RB
in/IN
this/DT
impoverished/JJ
land/NN
./.
She/PRP
has/VBZ
indeed/RB
turned/VBN
Hochiminh/NNP
City/NNP
Food/NNP
into/IN
a/DT
budding/VBG
conglomerate/NN
,/,
but/CC
the/DT
company/NN
itself/PRP
remains/VBZ
state-owned/JJ
./.
She/PRP
manages/VBZ
it/PRP
with/IN
the/DT
title/NN
of/IN
general-director/NN
./.
The/DT
heart/NN
of/IN
the/DT
business/NN
is/VBZ
the/DT
purchase/NN
of/IN
rice/NN
and/CC
other/JJ
commodities/NNS
,/,
such/JJ
as/IN
corn/NN
and/CC
coffee/NN
,/,
from/IN
farmers/NNS
in/IN
the/DT
south/NN
,/,
paying/VBG
with/IN
fertilizer/NN
,/,
farm/NN
tools/NNS
and/CC
other/JJ
items/NNS
./.
Last/JJ
year/NN
,/,
Hochiminh/NNP
City/NNP
Food/NNP
says/VBZ
it/PRP
bought/VBD
two/CD
million/CD
metric/JJ
tons/NNS
of/IN
unhusked/VBN
rice/NN
,/,
more/JJR
than/IN
10/CD
%/NN
of/IN
the/DT
country/NN
's/POS
output/NN
./.
The/DT
company/NN
operates/VBZ
a/DT
fleet/NN
of/IN
trucks/NNS
and/CC
boats/NNS
to/TO
transport/VB
the/DT
commodities/NNS
to/TO
its/PRP$
warehouses/NNS
./.
A/DT
subsidiary/JJ
company/NN
processes/VBZ
commodities/NNS
into/IN
foods/NNS
such/JJ
as/IN
instant/NN
noodles/NNS
that/WDT
are/VBP
sold/VBN
with/IN
the/DT
rice/NN
through/IN
a/DT
vast/JJ
retail/JJ
network/NN
./.
In/IN
recent/JJ
years/NNS
,/,
Mrs./NNP
Thi/NNP
has/VBZ
started/VBN
to/TO
diversify/VB
the/DT
company/NN
,/,
taking/VBG
a/DT
20/CD
%/NN
stake/NN
in/IN
newly/RB
established/VBN
,/,
partly/RB
private/JJ
Industrial/NNP
and/CC
Commercial/NNP
Bank/NNP
,/,
and/CC
setting/VBG
up/RP
Saigon/NNP
Petro/NNP
,/,
which/WDT
owns/VBZ
and/CC
operates/VBZ
Vietnam/NNP
's/POS
first/JJ
oil/NN
refinery/NN
./.
Mrs./NNP
Thi/NNP
says/VBZ
Hochiminh/NNP
City/NNP
Food/NNP
last/JJ
year/NN
increased/VBD
pretax/JJ
profit/NN
60/CD
%/NN
to/TO
the/DT
equivalent/NN
of/IN
about/RB
$/$
2.7/CD
million/CD
on/IN
sales/NNS
of/IN
$/$
150/CD
million/CD
./.
She/PRP
expects/VBZ
both/DT
revenue/NN
and/CC
profit/NN
to/TO
gain/VB
this/DT
year/NN
./.
She/PRP
is/VBZ
almost/RB
cavalier/JJ
about/IN
the/DT
possibility/NN
Vietnam/NNP
's/POS
reforms/NNS
will/MD
create/VB
rivals/NNS
on/IN
her/PRP$
home/NN
turf/NN
./.
``/``
I/PRP
do/VBP
n't/RB
mind/VB
the/DT
competition/NN
inside/IN
the/DT
country/NN
,/,
''/''
she/PRP
says/VBZ
./.
``/``
I/PRP
am/VBP
only/RB
afraid/JJ
that/IN
with/IN
Vietnam/NNP
's/POS
poor-quality/JJ
products/NNS
we/PRP
ca/MD
n't/RB
compete/VB
with/IN
neighboring/JJ
countries/NNS
./.
''/''
The/DT
earthquake/NN
that/WDT
hit/VBD
the/DT
San/NNP
Francisco/NNP
Bay/NNP
area/NN
is/VBZ
n't/RB
likely/JJ
to/TO
result/VB
in/IN
wholesale/JJ
downgrading/NN
of/IN
bond/NN
ratings/NNS
,/,
officials/NNS
at/IN
the/DT
two/CD
major/JJ
rating/NN
agencies/NNS
said/VBD
./.
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NNP
is/VBZ
reviewing/VBG
debt/NN
issued/VBN
by/IN
12/CD
California/NNP
counties/NNS
,/,
and/CC
``/``
there/EX
are/VBP
potential/JJ
isolated/VBN
problems/NNS
,/,
''/''
said/VBD
Hyman/NNP
Grossman/NNP
,/,
a/DT
managing/VBG
director/NN
./.
The/DT
agency/NN
is/VBZ
preparing/VBG
a/DT
report/NN
,/,
to/TO
be/VB
issued/VBN
today/NN
,/,
on/IN
the/DT
earthquake/NN
's/POS
impact/NN
on/IN
the/DT
property-/NN
and/CC
casualty-insurance/JJ
industry/NN
./.
The/DT
only/JJ
securities/NNS
so/RB
far/RB
to/TO
be/VB
singled/VBN
out/RP
are/VBP
those/DT
issued/VBN
by/IN
Bay/NNP
View/NNP
Federal/NNP
Savings/NNP
&/CC
Loan/NNP
./.
Moody/NNP
's/POS
Investors/NNP
Service/NNP
Inc./NNP
said/VBD
it/PRP
is/VBZ
reviewing/VBG
,/,
with/IN
an/DT
eye/NN
toward/IN
a/DT
possible/JJ
downgrade/NN
,/,
the/DT
ratings/NNS
on/IN
Bay/NNP
View/NNP
Federal/NNP
bonds/NNS
,/,
long-term/JJ
deposits/NNS
and/CC
the/DT
preferred-stock/JJ
rating/NN
of/IN
its/PRP$
parent/NN
company/NN
,/,
Bay/NNP
View/NNP
Capital/NNP
Corp/NNP
./.
As/IN
for/IN
property/NN
and/CC
casualty/NN
insurers/NNS
,/,
Moody/NNP
's/POS
said/VBD
``/``
preliminary/JJ
estimates/NNS
suggest/VBP
that/IN
losses/NNS
should/MD
not/RB
have/VB
a/DT
significant/JJ
impact/NN
on/IN
most/JJS
insurers/NNS
'/POS
financial/JJ
condition/NN
,/,
''/''
but/CC
it/PRP
``/``
raises/VBZ
concerns/NNS
about/IN
potentially/RB
substantial/JJ
risks/NNS
''/''
longer-term/JJ
./.
``/``
Losses/NNS
from/IN
the/DT
earthquake/NN
are/VBP
expected/VBN
to/TO
be/VB
of/IN
similar/JJ
magnitude/NN
to/TO
those/DT
of/IN
Hurricane/NNP
Hugo/NNP
,/,
''/''
according/VBG
to/TO
Moody/NNP
's/POS
./.
Your/PRP$
Oct./NNP
5/CD
editorial/NN
``/``
A/DT
Democratic/JJ
Tax/NNP
Cut/NNP
''/''
contained/VBD
an/DT
error/NN
./.
In/IN
the/DT
third/JJ
paragraph/NN
it/PRP
referred/VBD
to/TO
the/DT
senators/NNS
seeking/VBG
loophole/NN
suggestions/NNS
from/IN
lobbyists/NNS
for/IN
various/JJ
sectors/NNS
of/IN
the/DT
economy/NN
./.
Among/IN
them/PRP
,/,
``/``
banana/NN
farmers/NNS
./.
''/''
The/DT
only/JJ
significant/JJ
commercial/JJ
banana/NN
farmers/NNS
in/IN
the/DT
U.S./NNP
are/VBP
in/IN
Hawaii/NNP
./.
The/DT
Hawaii/NNP
Banana/NNP
Industry/NNP
Association/NNP
,/,
to/TO
which/WDT
nearly/RB
all/DT
of/IN
them/PRP
belong/VBP
,/,
has/VBZ
no/DT
lobbyist/NN
./.
Thomas/NNP
V./NNP
Reese/NNP
Sr/NNP
./.
Maui/NNP
Banana/NNP
Co/NNP
./.
Kihei/NNP
,/,
Maui/NNP
,/,
Hawaii/NNPS
Western/NNP
Digital/NNP
Corp./NNP
reported/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
2.7/CD
million/CD
,/,
or/CC
nine/CD
cents/NNS
a/DT
share/NN
,/,
for/IN
its/PRP$
first/JJ
quarter/NN
ended/VBN
Sept./NNP
30/CD
,/,
citing/VBG
factors/NNS
as/RB
varied/VBN
as/IN
hurricane/NN
damage/NN
,/,
an/DT
advance/NN
in/IN
graphics/NNS
technology/NN
and/CC
the/DT
strengthening/JJ
dollar/NN
./.
In/IN
the/DT
year-ago/JJ
period/NN
,/,
the/DT
company/NN
earned/VBD
$/$
12.9/CD
million/CD
,/,
or/CC
45/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
sales/NNS
of/IN
$/$
247/CD
million/CD
./.
Sales/NNS
for/IN
the/DT
just-ended/JJ
period/NN
fell/VBD
to/TO
about/RB
$/$
225/CD
million/CD
,/,
the/DT
maker/NN
of/IN
computer/NN
parts/NNS
said/VBD
./.
Nonetheless/RB
,/,
Chairman/NNP
Roger/NNP
W./NNP
Johnson/NNP
said/VBD
he/PRP
expects/VBZ
the/DT
company/NN
to/TO
be/VB
profitable/JJ
in/IN
the/DT
current/JJ
quarter/NN
./.
``/``
We/PRP
are/VBP
positioned/VBN
to/TO
come/VB
through/RP
,/,
''/''
he/PRP
said/VBD
,/,
noting/VBG
that/IN
the/DT
company/NN
's/POS
backlog/NN
was/VBD
up/RB
from/IN
the/DT
previous/JJ
quarter/NN
./.
In/IN
its/PRP$
second/JJ
quarter/NN
last/JJ
year/NN
,/,
Western/NNP
Digital/NNP
earned/VBD
$/$
12.7/CD
million/CD
,/,
or/CC
44/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
sales/NNS
of/IN
$/$
258.4/CD
million/CD
./.
Mr./NNP
Johnson/NNP
said/VBD
Western/NNP
Digital/NNP
's/POS
plant/NN
in/IN
Puerto/NNP
Rico/NNP
was/VBD
affected/VBN
by/IN
Hurricane/NNP
Hugo/NNP
,/,
losing/VBG
three/CD
days/NNS
'/POS
production/NN
because/IN
of/IN
the/DT
storm/NN
,/,
which/WDT
wrecked/VBD
much/JJ
of/IN
the/DT
Caribbean/JJ
island/NN
's/POS
infrastructure/NN
./.
Although/IN
the/DT
plant/NN
itself/PRP
was/VBD
n't/RB
damaged/VBD
,/,
Mr./NNP
Johnson/NNP
said/VBD
millions/NNS
of/IN
dollars/NNS
in/IN
first-quarter/JJ
revenue/NN
were/VBD
lost/VBN
./.
The/DT
revenue/NN
will/MD
be/VB
regained/VBN
in/IN
the/DT
current/JJ
period/NN
,/,
he/PRP
added/VBD
./.
There/EX
are/VBP
no/DT
plans/NNS
to/TO
initiate/VB
a/DT
common/JJ
stock/NN
dividend/NN
,/,
Mr./NNP
Johnson/NNP
said/VBD
,/,
explaining/VBG
that/IN
the/DT
board/NN
continues/VBZ
to/TO
believe/VB
shareholders/NNS
are/VBP
best/RBS
served/VBN

by/IN
reinvesting/VBG
excess/JJ
cash/NN
./.
Mr./NNP
Johnson/NNP
said/VBD
the/DT
first-quarter/JJ
loss/NN
also/RB
heavily/RB
reflected/VBD
a/DT
rapid/JJ
change/NN
in/IN
graphics/NNS
technology/NN
that/WDT
left/VBD
reseller/NN
channels/NNS
with/IN
too/RB
many/JJ
of/IN
the/DT
old/JJ
computer/NN
graphics/NNS
boards/NNS
and/CC
too/RB
few/JJ
new/JJ
monitors/NNS
compatible/JJ
with/IN
the/DT
new/JJ
graphics/NNS
boards/NNS
./.
Western/NNP
Digital/NNP
does/VBZ
n't/RB
make/VB
the/DT
monitors/NNS
./.
An/DT
accelerating/JJ
move/NN
by/IN
personal/JJ
computer/NN
manufacturers/NNS
'/POS
to/TO
include/VB
advanced/VBN
graphics/NNS
capabilities/NNS
as/IN
standard/JJ
equipment/NN
further/RBR
dampened/VBD
reseller/JJR
purchases/NNS
of/IN
Western/NNP
Digital/NNP
's/POS
equipment/NN
./.
``/``
The/DT
other/JJ
areas/NNS
of/IN
the/DT
business/NN
--/:
storage/NN
and/CC
microcomputers/NNS
--/:
were/VBD
very/RB
good/JJ
,/,
''/''
Mr./NNP
Johnson/NNP
said/VBD
./.
He/PRP
said/VBD
Western/NNP
Digital/NNP
has/VBZ
reacted/VBN
swiftly/RB
to/TO
the/DT
movement/NN
to/TO
video/JJ
graphics/NNS
array/NN
,/,
VGA/NNP
,/,
graphics/NNS
technology/NN
from/IN
the/DT
old/JJ
enhanced/JJ
graphics/NNS
adapter/NN
,/,
EGA/NNP
,/,
which/WDT
has/VBZ
a/DT
lower/JJR
resolution/NN
standard/NN
,/,
technology/NN
and/CC
now/RB
is/VBZ
one/CD
of/IN
the/DT
leading/VBG
producers/NNS
of/IN
these/DT
newer/JJR
units/NNS
./.
Other/JJ
makers/NNS
of/IN
video/JJ
controller/NN
equipment/NN
also/RB
were/VBD
caught/VBN
in/IN
the/DT
EGA-VGA/JJ
shift/NN
,/,
he/PRP
said/VBD
,/,
``/``
but/CC
we/PRP
were/VBD
able/JJ
to/TO
respond/VB
much/RB
more/RBR
quickly/RB
./.
''/''
Still/RB
,/,
Mr./NNP
Johnson/NNP
said/VBD
,/,
``/``
our/PRP$
stock/NN
is/VBZ
grossly/RB
undervalued/VBN
./.
''/''
He/PRP
said/VBD
the/DT
company/NN
has/VBZ
cut/VBN
operating/NN
expenses/NNS
by/IN
about/RB
10/CD
%/NN
over/IN
the/DT
last/JJ
few/JJ
quarters/NNS
,/,
while/IN
maintaining/VBG
research/NN
and/CC
development/NN
at/IN
about/RB
8/CD
%/NN
to/TO
9/CD
%/NN
of/IN
sales/NNS
./.
As/IN
part/NN
of/IN
its/PRP$
reorganization/NN
this/DT
week/NN
,/,
Western/NNP
Digital/NNP
has/VBZ
divided/VBN
its/PRP$
business/NN
into/IN
two/CD
segments/NNS
--/:
storage/NN
products/NNS
,/,
including/VBG
controllers/NNS
and/CC
disk/NN
drives/NNS
;/:
and/CC
microcomputer/JJR
products/NNS
,/,
which/WDT
include/VBP
graphics/NNS
,/,
communications/NNS
and/CC
peripheral/JJ
control/NN
chips/NNS
./.
Graphics/NNS
,/,
communications/NNS
and/CC
peripheral/JJ
control/NN
chips/NNS
were/VBD
combined/VBN
because/IN
,/,
increasingly/RB
,/,
multiple/JJ
functions/NNS
are/VBP
being/VBG
governed/VBN
by/IN
a/DT
single/JJ
chip/NN
./.
Storage/NN
,/,
which/WDT
includes/VBZ
computer/NN
controllers/NNS
and/CC
3.5-inch/JJ
disk/NN
drives/NNS
,/,
represents/VBZ
nearly/RB
two-thirds/NNS
of/IN
the/DT
company/NN
's/POS
business/NN
./.
Disk/NN
drives/NNS
,/,
which/WDT
allow/VBP
a/DT
computer/NN
to/TO
access/VB
its/PRP$
memory/NN
,/,
generated/VBD
38/CD
%/NN
more/JJR
revenue/NN
in/IN
the/DT
most/RBS
recent/JJ
period/NN
compared/VBN
with/IN
the/DT
fiscal/JJ
first/JJ
quarter/NN
a/DT
year/NN
earlier/RBR
./.
Computer/NN
parts/NNS
are/VBP
getting/VBG
ever/RB
smaller/JJR
,/,
Mr./NNP
Johnson/NNP
said/VBD
,/,
a/DT
shrinking/NN
that/WDT
has/VBZ
propelled/VBN
laptops/NNS
into/IN
position/NN
as/IN
the/DT
fastest-growing/JJ
segment/NN
of/IN
the/DT
computer/NN
business/NN
./.
As/IN
smaller/JJR
and/CC
more/RBR
powerful/JJ
computers/NNS
continue/VBP
to/TO
be/VB
the/DT
focus/NN
of/IN
the/DT
industry/NN
,/,
he/PRP
said/VBD
,/,
Western/NNP
Digital/NNP
is/VBZ
strengthening/VBG
development/NN
of/IN
laptop/NN
parts/NNS
./.
Next/JJ
year/NN
Western/NNP
Digital/NNP
plans/VBZ
to/TO
consolidate/VB
its/PRP$
operations/NNS
from/IN
11/CD
buildings/NNS
in/IN
Irvine/NNP
into/IN
two/CD
buildings/NNS
in/IN
the/DT
same/JJ
city/NN
a/DT
new/JJ
headquarters/NN
and/CC
,/,
a/DT
block/NN
away/RB
,/,
a/DT
modern/JJ
$/$
100/CD
million/CD
silicon/NN
wafer/NN
fabrication/NN
plant/NN
./.
The/DT
plan/NN
will/MD
help/VB
the/DT
company/NN
in/IN
its/PRP$
existing/VBG
joint/NN
manufacturing/NN
agreement/NN
with/IN
AT&T/NNP
./.
About/IN
half/NN
of/IN
Western/NNP
Digital/NNP
's/POS
business/NN
is/VBZ
overseas/JJ
,/,
and/CC
Mr./NNP
Johnson/NNP
expects/VBZ
that/DT
proportion/NN
to/TO
continue/VB
./.
Plans/NNS
to/TO
dissolve/VB
many/JJ
of/IN
the/DT
trade/NN
barriers/NNS
within/IN
Europe/NNP
in/IN
1992/CD
creates/VBZ
significant/JJ
opportunities/NNS
for/IN
the/DT
company/NN
,/,
he/PRP
said/VBD
,/,
particularly/RB
since/IN
Western/NNP
Digital/NNP
already/RB
manufactures/VBZ
there/RB
./.
Capitalizing/VBG
on/IN
that/DT
presence/NN
,/,
Western/NNP
Digital/NNP
is/VBZ
launching/VBG
a/DT
major/JJ
effort/NN
to/TO
develop/VB
the/DT
embryonic/JJ
reseller/JJR
market/NN
in/IN
Europe/NNP
./.
Directors/NNS
of/IN
state-owned/JJ
Banca/NNP
Nazionale/NNP
del/DT
Lavoro/NNP
approved/VBD
a/DT
two-step/JJ
capital-boosting/JJ
transaction/NN
and/CC
a/DT
change/NN
in/IN
the/DT
bank/NN
's/POS
rules/NNS
that/WDT
will/MD
help/VB
it/PRP
operate/VB
more/RBR
like/IN
a/DT
private-sector/JJ
institution/NN
./.
Until/IN
now/RB
,/,
BNL/NNP
's/POS
top/JJ
managers/NNS
and/CC
its/PRP$
directors/NNS
have/VBP
been/VBN
appointed/VBN
by/IN
a/DT
Treasury/NNP
decree/NN
./.
But/CC
under/IN
the/DT
bank/NN
's/POS
proposed/VBN
statutes/NNS
,/,
an/DT
assembly/NN
of/IN
shareholders/NNS
must/MD
approve/VB
board/NN
members/NNS
./.
The/DT
bank/NN
's/POS
chairman/NN
and/CC
director/NN
general/NN
,/,
who/WP
also/RB
sit/VBP
on/IN
the/DT
board/NN
,/,
still/RB
would/MD
be/VB
appointed/VBN
by/IN
the/DT
Treasury/NNP
./.
BNL/NNP
,/,
which/WDT
is/VBZ
controlled/VBN
by/IN
the/DT
Italian/NNP
Treasury/NNP
,/,
was/VBD
rocked/VBN
by/IN
the/DT
disclosure/NN
last/JJ
month/NN
that/IN
its/PRP$
Atlanta/NNP
branch/NN
extended/VBD
more/JJR
than/IN
$/$
3/CD
billion/CD
in/IN
unauthorized/JJ
credits/NNS
to/TO
Iraq/NNP
./.
The/DT
ensuing/VBG
scandal/NN
,/,
in/IN
which/WDT
the/DT
bank/NN
's/POS
management/NN
resigned/VBD
,/,
has/VBZ
helped/VBN
renew/VB
calls/NNS
for/IN
privatization/NN
,/,
or/CC
at/IN
least/JJS
an/DT
overhaul/NN
,/,
of/IN
Italy/NNP
's/POS
banking/NN
system/NN
,/,
which/WDT
is/VBZ
about/RB
80/CD
%/NN
state-controlled/JJ
./.
In/IN
a/DT
related/VBN
move/NN
,/,
the/DT
bank/NN
also/RB
proposed/VBD
that/IN
board/NN
representation/NN
be/VB
linked/VBN
more/RBR
closely/RB
to/TO
the/DT
bank/NN
's/POS
new/JJ
shareholding/NN
structure/NN
./.
BNL/NNP
called/VBD
a/DT
shareholders/NNS
'/POS
assembly/NN
meeting/NN
in/IN
December/NNP
to/TO
vote/VB
on/IN
the/DT
proposals/NNS
./.
BNL/NNP
has/VBZ
about/RB
75,000/CD
nonvoting/JJ
shares/NNS
that/WDT
are/VBP
listed/VBN
on/IN
the/DT
Milan/NNP
Stock/NNP
Exchange/NNP
./.
The/DT
shares/NNS
were/VBD
suspended/VBN
from/IN
trading/NN
following/VBG
disclosure/NN
of/IN
the/DT
Atlanta/NNP
scandal/NN
;/:
Consob/NNP
,/,
the/DT
stock/NN
exchange/NN
regulatory/JJ
body/NN
,/,
reportedly/RB
will/MD
decide/VB
soon/RB
whether/IN
to/TO
end/VB
the/DT
trading/NN
suspension/NN
./.
Switzerland/NNP
's/POS
wholesale/JJ
price/NN
index/NN
increased/VBD
0.3/CD
%/NN
in/IN
September/NNP
from/IN
August/NNP
,/,
and/CC
was/VBD
up/IN
3.9/CD
%/NN
from/IN
a/DT
year/NN
ago/RB
,/,
marking/VBG
the/DT
first/JJ
time/NN
this/DT
year/NN
that/IN
the/DT
index/NN
has/VBZ
fallen/VBN
below/IN
4/CD
%/NN
on/IN
a/DT
year-to-year/JJ
basis/NN
,/,
the/DT
government/NN
reported/VBD
./.
The/DT
government/NN
attributed/VBD
the/DT
0.3/CD
%/NN
month-to-month/JJ
rise/NN
in/IN
the/DT
index/NN
largely/RB
to/TO
higher/JJR
energy/NN
prices/NNS
./.
In/IN
August/NNP
,/,
the/DT
index/NN
was/VBD
up/RB
0.2/CD
%/NN
from/IN
the/DT
previous/JJ
month/NN
,/,
and/CC
was/VBD
up/RB
4.5/CD
%/NN
on/IN
a/DT
year-to-year/JJ
basis/NN
./.
The/DT
wholesale/JJ
price/NN
index/NN
,/,
based/VBN
on/IN
1963/CD
as/IN
100/CD
,/,
was/VBD
180.9/CD
in/IN
September/NNP
./.
American/NNP
Express/NNP
Co./NNP
posted/VBD
a/DT
21/CD
%/NN
increase/NN
in/IN
third/JJ
quarter/NN
net/JJ
income/NN
despite/IN
a/DT
sharp/JJ
rise/NN
in/IN
reserves/NNS
for/IN
Third/NNP
World/NNP
loans/NNS
at/IN
its/PRP$
banking/NN
unit/NN
./.
Aided/VBN
by/IN
a/DT
sharp/JJ
gain/NN
in/IN
its/PRP$
travel/NN
business/NN
,/,
American/NNP
Express/NNP
said/VBD
net/JJ
rose/VBD
to/TO
$/$
331.8/CD
million/CD
,/,
or/CC
77/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
273.9/CD
million/CD
,/,
or/CC
64/CD
cents/NNS
a/DT
share/NN
./.
The/DT
year-earlier/JJ
figures/NNS
included/VBD
$/$
9.9/CD
million/CD
,/,
or/CC
three/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
income/NN
from/IN
discontinued/VBN
operations/NNS
./.
Income/NN
from/IN
continuing/VBG
operations/NNS
was/VBD
up/RB
26/CD
%/NN
./.
Revenue/NN
rose/VBD
24/CD
%/NN
to/TO
$/$
6.5/CD
billion/CD
from/IN
$/$
5.23/CD
billion/CD
./.
The/DT
travel/NN
,/,
investment/NN
services/NNS
,/,
insurance/NN
and/CC
banking/NN
concern/NN
added/VBD
$/$
110/CD
million/CD
to/TO
reserves/NNS
for/IN
credit/NN
losses/NNS
at/IN
its/PRP$
American/NNP
Express/NNP
Bank/NNP
unit/NN
,/,
boosting/VBG
the/DT
reserve/NN
to/TO
$/$
507/CD
million/CD
as/IN
of/IN
Sept./NNP
30/CD
./.
The/DT
bank/NN
's/POS
Third/NNP
World/NNP
debt/NN
portfolio/NN
totals/VBZ
$/$
560/CD
million/CD
,/,
down/RB
from/IN
$/$
2.2/CD
billion/CD
at/IN
the/DT
end/NN
of/IN
1986/CD
./.
The/DT
bank/NN
charged/VBD
off/RP
$/$
53/CD
million/CD
in/IN
loans/NNS
during/IN
the/DT
quarter/NN
./.
At/IN
the/DT
American/NNP
Express/NNP
Travel/NNP
Related/NNP
Services/NNP
Co./NNP
unit/NN
,/,
net/JJ
rose/VBD
17/CD
%/NN
to/TO
a/DT
record/NN
$/$
240.8/CD
million/CD
on/IN
a/DT
19/CD
%/NN
revenue/NN
increase/NN
./.
The/DT
figures/NNS
exclude/VBP
businesses/NNS
now/RB
organized/VBN
as/IN
American/NNP
Express/NNP
Information/NNP
Services/NNP
Co/NNP
./.
American/NNP
Express/NNP
card/NN
charge/NN
volume/NN
rose/VBD
12/CD
%/NN
./.
Travel/NN
sales/NNS
rose/VBD
11/CD
%/NN
,/,
led/VBN
by/IN
gains/NNS
in/IN
the/DT
U.S/NNP
./.
At/IN
IDS/NNP
Financial/NNP
Services/NNP
,/,
the/DT
financial/JJ
planning/NN
and/CC
mutual/JJ
fund/NN
unit/NN
,/,
net/JJ
rose/VBD
19/CD
%/NN
to/TO
a/DT
record/NN
$/$
47.6/CD
million/CD
on/IN
a/DT
33/CD
%/NN
revenue/NN
gain/NN
./.
Assets/NNS
owned/VBN
or/CC
managed/VBN
rose/VBD
20/CD
%/NN
to/TO
$/$
45/CD
billion/CD
,/,
and/CC
mutual/JJ
fund/NN
sales/NNS
rose/VBD
45/CD
%/NN
in/IN
the/DT
quarter/NN
to/TO
$/$
923/CD
million/CD
./.
American/NNP
Express/NNP
Bank/NNP
earnings/NNS
fell/VBD
50/CD
%/NN
to/TO
$/$
21.3/CD
million/CD
from/IN
$/$
42.5/CD
million/CD
despite/IN
a/DT
29/CD
%/NN
revenue/NN
gain/NN
./.
The/DT
results/NNS
include/VBP
$/$
106/CD
million/CD
of/IN
tax/NN
benefits/NNS
associated/VBN
with/IN
previous/JJ
years/NNS
'/POS
Third/JJ
World/NNP
loan/NN
activity/NN
,/,
compared/VBN
with/IN
$/$
15/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
Profit/NN
rose/VBD
38/CD
%/NN
at/IN
American/NNP
Express/NNP
Information/NNP
Services/NNP
to/TO
$/$
21.6/CD
million/CD
./.
Shearson/NNP
Lehman/NNP
Hutton/NNP
Holdings/NNP
Inc./NNP
,/,
as/RB
previously/RB
reported/VBN
,/,
had/VBD
net/JJ
of/IN
$/$
65.9/CD
million/CD
,/,
reversing/VBG
a/DT
$/$
3.5/CD
million/CD
loss/NN
a/DT
year/NN
earlier/RBR
;/:
its/PRP$
latest/JJS
results/NNS
include/VBP
a/DT
$/$
37/CD
million/CD
gain/NN
from/IN
the/DT
sale/NN
of/IN
an/DT
institutional/JJ
money/NN
management/NN
business/NN
./.
American/NNP
Express/NNP
's/POS
share/NN
of/IN
Shearson/NNP
's/POS
earnings/NNS
was/VBD
$/$
41/CD
million/CD
,/,
after/RB
preferred/VBN
stock/NN
dividends/NNS
;/:
it/PRP
owns/VBZ
about/RB
68/CD
%/NN
of/IN
Shearson/NNP
's/POS
common/NN
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
American/NNP
Express/NNP
said/VBD
net/JJ
rose/VBD
11/CD
%/NN
to/TO
$/$
899.8/CD
million/CD
,/,
or/CC
$/$
2.09/CD
a/DT
share/NN
,/,
from/IN
$/$
807.5/CD
million/CD
,/,
or/CC
$/$
1.89/CD
a/DT
share/NN
./.
Revenue/NN
rose/VBD
24/CD
%/NN
to/TO
$/$
18.73/CD
billion/CD
from/IN
$/$
15.09/CD
billion/CD
./.
Textron/NNP
Inc./NNP
,/,
hampered/VBN
by/IN
a/DT
slowdown/NN
in/IN
its/PRP$
defense/NN
sales/NNS
,/,
reported/VBD
an/DT
8/CD
%/NN
decline/NN
in/IN
per-share/JJ
earnings/NNS
on/IN
nearly/RB
flat/JJ
revenue/NN
for/IN
its/PRP$
third/JJ
quarter/NN
./.
The/DT
aerospace/NN
and/CC
financial/JJ
services/NNS
concern/NN
said/VBD
net/JJ
income/NN
fell/VBD
5/CD
%/NN
to/TO
$/$
59.5/CD
million/CD
from/IN
$/$
62.8/CD
million/CD
./.
Revenue/NN
of/IN
$/$
1.73/CD
billion/CD
was/VBD
almost/RB
unchanged/JJ
from/IN
last/JJ
year/NN
's/POS
$/$
1.72/CD
billion/CD
./.
Per-share/JJ
net/NN
of/IN
66/CD
cents/NNS
,/,
down/RB
from/IN
72/CD
cents/NNS
,/,
fell/VBD
by/IN
more/JJR
than/IN
overall/JJ
net/NN
because/IN
of/IN
more/JJR
shares/NNS
outstanding/JJ
./.
The/DT
company/NN
said/VBD
that/IN
improved/VBN
results/NNS
in/IN
its/PRP$
financial-services/JJ
sector/NN
were/VBD
negated/VBN
by/IN
increased/VBN
costs/NNS
in/IN
its/PRP$
government/NN
contract/NN
business/NN
,/,
lower/JJR
operating/NN
earnings/NNS
in/IN
its/PRP$
commercial-products/JJ
sector/NN
and/CC
soft/JJ
automotive/JJ
markets/NNS
./.
Net/JJ
was/VBD
aided/VBN
by/IN
a/DT
lower/JJR
income/NN
tax/NN
rate/NN
./.
Profit/NN
before/IN
taxes/NNS
fell/VBD
17/CD
%/NN
to/TO
$/$
84.4/CD
million/CD
from/IN
$/$
101.4/CD
million/CD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Textron/NNP
reported/VBD
net/JJ
of/IN
$/$
182.1/CD
million/CD
,/,
or/CC
$/$
2.06/CD
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
5.41/CD
billion/CD
./.
A/DT
year/NN
ago/RB
,/,
net/NN
was/VBD
$/$
170.4/CD
million/CD
,/,
or/CC
$/$
1.93/CD
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
5.3/CD
billion/CD
./.
The/DT
nine-month/JJ
results/NNS
included/VBD
a/DT
$/$
9.5/CD
million/CD
special/JJ
charge/NN
in/IN
1989/CD
for/IN
an/DT
arbitration/NN
settlement/NN
related/VBN
to/TO
past/JJ
export/NN
sales/NNS
,/,
and/CC
$/$
29.7/CD
million/CD
in/IN
extraordinary/JJ
charges/NNS
in/IN
1988/CD
related/VBD
to/TO
a/DT
former/JJ
line/NN
of/IN
business/NN
and/CC
early/JJ
redemption/NN
of/IN
debt/NN
./.
Textron/NNP
said/VBD
that/IN
nine-months/NNS
'/POS
results/NNS
do/VBP
n't/RB
include/VB
earnings/NNS
of/IN
Avdel/NNP
PLC/NNP
,/,
a/DT
British/JJ
maker/NN
of/IN
industrial/JJ
fasteners/NNS
,/,
but/CC
do/VBP
include/VB
interest/NN
costs/NNS
of/IN
$/$
16.4/CD
million/CD
on/IN
borrowings/NNS
related/VBN
to/TO
the/DT
proposed/VBN
purchase/NN
of/IN
Avdel/NNP
./.
A/DT
federal/JJ
judge/NN
has/VBZ
issued/VBN
a/DT
preliminary/JJ
injunction/NN
against/IN
the/DT
purchase/NN
because/IN
of/IN
Federal/NNP
Trade/NNP
Commission/NNP
concerns/NNS
that/IN
the/DT
transaction/NN
would/MD
reduce/VB
competition/NN
in/IN
the/DT
production/NN
of/IN
two/CD
kinds/NNS
of/IN
rivets/NNS
./.
For/IN
the/DT
quarter/NN
,/,
Textron/NNP
said/VBD
aerospace/NN
revenue/NN
,/,
including/VBG
Bell/NNP
helicopter/NN
and/CC
jet-engine/NN
manufacture/NN
,/,
declined/VBD
9.8/CD
%/NN
to/TO
$/$
755.9/CD
million/CD
from/IN
$/$
838.3/CD
million/CD
,/,
an/DT
indication/NN
of/IN
slowing/VBG
government/NN
defense/NN
work/NN
./.
As/IN
the/DT
Hunt/NNP
brothers/NNS
'/POS
personal/JJ
bankruptcy/NN
cases/NNS
sputter/VBP
into/IN
their/PRP$
second/JJ
year/NN
,/,
Minpeco/NNP
S.A./NNP
has/VBZ
proposed/VBN
a/DT
deal/NN
to/TO
settle/VB
its/PRP$
huge/JJ
claim/NN
against/IN
the/DT
troubled/VBN
Texas/NNP
oil/NN
men/NNS
./.
But/CC
the/DT
plan/NN
only/RB
threatens/VBZ
to/TO
heighten/VB
the/DT
tension/NN
and/CC
confusion/NN
already/RB
surrounding/VBG
the/DT
cases/NNS
that/WDT
were/VBD
filed/VBN
in/IN
September/NNP
1988/CD
./.
The/DT
Peruvian/JJ
mineral/NN
concern/NN
's/POS
$/$
251/CD
million/CD
claim/NN
stems/VBZ
from/IN
1988/CD
jury/NN
award/NN
in/IN
a/DT
case/NN
stemming/VBG
from/IN
the/DT
brothers/NNS
'/POS
alleged/VBN
attempts/NNS
to/TO
corner/VB
the/DT
1979-80/CD
silver/NN
market/NN
./.
Minpeco/NNP
now/RB
says/VBZ
it/PRP
is/VBZ
willing/JJ
to/TO
settle/VB
for/RP
up/IN
to/TO
$/$
65.7/CD
million/CD
from/IN
each/DT
brother/NN
,/,
although/IN
the/DT
actual/JJ
amount/NN
would/MD
probably/RB
be/VB
much/RB
less/JJR
./.
Although/IN
the/DT
proposal/NN
must/MD
be/VB
approved/VBN
by/IN
federal/JJ
Judge/NNP
Harold/NNP
C./NNP
Abramson/NNP
,/,
W./NNP
Herbert/NNP
Hunt/NNP
has/VBZ
agreed/VBN
to/TO
the/DT
Peruvian/JJ
mineral/NN
concern/NN
's/POS
proposal/NN
./.
Nelson/NNP
Bunker/NNP
Hunt/NNP
is/VBZ
considering/VBG
it/PRP
,/,
although/IN
his/PRP$
attorney/NN
says/VBZ
he/PRP
wo/MD
n't/RB
do/VB
it/PRP
if/IN
the/DT
proposal/NN
jeopardizes/VBZ
a/DT
tentative/JJ
settlement/NN
he/PRP
has/VBZ
reached/VBN
with/IN
the/DT
Internal/NNP
Revenue/NNP
Service/NNP
,/,
which/WDT
claims/VBZ
the/DT
brothers/NNS
owe/VBP
$/$
1/CD
billion/CD
in/IN
back/JJ
taxes/NNS
and/CC
is/VBZ
by/IN
far/RB
the/DT
biggest/JJS
creditor/NN
in/IN
both/DT
cases/NNS
./.
The/DT
tentative/NN
agreement/NN
between/IN
the/DT
IRS/NNP
and/CC
Nelson/NNP
Bunker/NNP
Hunt/NNP
is/VBZ
awaiting/VBG
U.S./NNP
Justice/NNP
Department/NNP
approval/NN
./.
Under/IN
it/PRP
,/,
the/DT
former/JJ
billionaire/NN
's/POS
assets/NNS
would/MD
be/VB
liquidated/VBN
with/IN
the/DT
IRS/NNP
getting/VBG
80/CD
%/NN
of/IN
the/DT
proceeds/NNS
and/CC
the/DT
rest/NN
being/NN
divided/VBN
among/IN
other/JJ
creditors/NNS
,/,
including/VBG
Minpeco/NNP
and/CC
Manufacturers/NNP
Hanover/NNP
Trust/NNP
Co./NNP
,/,
which/WDT
is/VBZ
seeking/VBG
repayment/NN
of/IN
a/DT
$/$
36/CD
million/CD
loan/NN
./.
A/DT
similiar/JJ
proposal/NN
has/VBZ
been/VBN
made/VBN
in/IN
the/DT
W./NNP
Herbert/NNP
Hunt/NNP
case/NN
although/IN
he/PRP
and/CC
the/DT
IRS/NNP
are/VBP
at/IN
odds/NNS
over/IN
the/DT
size/NN
of/IN
the/DT
non-dischargable/JJ
debt/NN
he/PRP
would/MD
have/VB
to/TO
pay/VB
to/TO
the/DT
government/NN
from/IN
future/JJ
earnings/NNS
./.
In/IN
both/DT
cases/NNS
,/,
Minpeco/NNP
and/CC
Manufacturers/NNP
Hanover/NNP
have/VBP
been/VBN
fighting/VBG
ferociously/RB
over/IN
their/PRP$
shares/NNS
of/IN
the/DT
pie/NN
./.
With/IN
support/NN
from/IN
the/DT
IRS/NNP
,/,
Manufacturers/NNP
Hanover/NNP
has/VBZ
filed/VBN
suit/NN
asking/VBG
Judge/NNP
Abramson/NNP
to/TO
subordinate/VB
Minpeco/NNP
's/POS
claim/NN
to/TO
those/DT
of/IN
Manufacturer/NNP
Hanover/NNP
and/CC
the/DT
IRS/NNP
./.
Minpeco/NNP
has/VBZ
threatened/VBN
a/DT
``/``
volcano/NN
''/''
of/IN
litigation/NN
if/IN
the/DT
Manufacturers/NNP
Hanover/NNP
Corp./NNP
unit/NN
attempts/VBZ
to/TO
force/VB
such/JJ
a/DT
plan/NN
through/IN
the/DT
court/NN
./.
Minpeco/NNP
said/VBD
it/PRP
would/MD
n't/RB
pursue/VB
such/JJ
litigation/NN
if/IN
its/PRP$
settlement/NN
plan/NN
in/IN
the/DT
W./NNP
Herbert/NNP
Hunt/NNP
case/NN
is/VBZ
approved/VBN
by/IN
Judge/NNP
Abramson/NNP
,/,
who/WP
will/MD
consider/VB
the/DT
proposal/NN
at/IN
a/DT
hearing/NN
next/IN
week/NN
./.
Minpeco/NNP
attorney/NN
Thomas/NNP
Gorman/NNP
decribed/VBD
the/DT
plan/NN
as/IN
one/CD
step/NN
toward/IN
an/DT
overall/JJ
settlement/NN
of/IN
the/DT
W./NNP
Herbert/NNP
Hunt/NNP
case/NN
but/CC
Hugh/NNP
Ray/NNP
,/,
attorney/NN
for/IN
Manufacturers/NNP
Hanover/NNP
,/,
called/VBD
it/PRP
``/``
silly/JJ
''/''
and/CC
said/VBD
he/PRP
would/MD
fight/VB
it/PRP
in/IN
court/NN
./.
``/``
The/DT
thing/NN
is/VBZ
so/RB
fluid/JJ
right/RB
now/RB
that/IN
there/EX
's/VBZ
really/RB
no/DT
way/NN
to/TO
say/VB
what/WP
will/MD
happen/VB
,/,
''/''
says/VBZ
Justice/NNP
Department/NNP
attorney/NN
Grover/NNP
Hartt/NNP
III/NNP
,/,
who/WP
represents/VBZ
the/DT
IRS/NNP
in/IN
the/DT
case/NN
./.
``/``
Developments/NNS
like/IN
this/DT
are/VBP
hard/JJ
to/TO
predict/VB
./.
''/''
Banc/NNP
One/CD
Corp./NNP
said/VBD
it/PRP
agreed/VBD
in/IN
principle/NN
to/TO
buy/VB
five/CD
branch/NN
offices/NNS
from/IN
Trustcorp/NNP
Inc./NNP
,/,
Toledo/NNP
,/,
Ohio/NNP
,/,
following/VBG
the/DT
planned/VBN
merger/NN
of/IN
Trustcorp/NNP
into/IN
Society/NNP
Corp./NNP
,/,
Cleveland/NNP
./.
The/DT
five/CD
offices/NNS
in/IN
Erie/NNP
and/CC
Ottawa/NNP
counties/NNS
in/IN
northern/JJ
Ohio/NNP
have/VBP
total/JJ
assets/NNS
of/IN
about/RB
$/$
88/CD
million/CD
,/,
Banc/NNP
One/CD
said/VBD
./.
The/DT
purchase/NN
price/NN
will/MD
be/VB
established/VBN
after/IN
Banc/NNP
One/CD
has/VBZ
an/DT
opportunity/NN
to/TO
study/VB
the/DT
quality/NN
of/IN
the/DT
assets/NNS
,/,
Banc/NNP
One/CD
said/VBD
./.
Society/NNP
Corp./NNP
already/RB
has/VBZ
branches/NNS
in/IN
the/DT
area/NN
,/,
and/CC
selling/VBG
the/DT
Trustcorp/NNP
offices/NNS
could/MD
avoid/VB
a/DT
problem/NN
with/IN
regulators/NNS
over/IN
excessive/JJ
concentration/NN
of/IN
banking/VBG
in/IN
the/DT
two/CD
counties/NNS
after/IN
the/DT
merger/NN
of/IN
Trustcorp/NNP
into/IN
Society/NNP
,/,
according/VBG
to/TO
industry/NN
sources/NNS
./.
The/DT
merger/NN
is/VBZ
scheduled/VBN
to/TO
take/VB
place/NN
in/IN
the/DT
1990/CD
first/JJ
quarter/NN
./.
Stock-market/NN
fears/NNS
and/CC
relatively/RB
more/RBR
attractive/JJ
interest/NN
rates/NNS
pushed/VBD
money-market/JJ
mutual/JJ
fund/NN
assets/NNS
up/RB
$/$
6.07/CD
billion/CD
in/IN
the/DT
latest/JJS
week/NN
,/,
the/DT
sharpest/JJS
increase/NN
in/IN
almost/RB
two/CD
years/NNS
./.
The/DT
473/CD
funds/NNS
tracked/VBN
by/IN
the/DT
Investment/NNP
Company/NNP
Institute/NNP
,/,
a/DT
Washington-based/JJ
trade/NN
group/NN
,/,
rose/VBD
to/TO
$/$
356.1/CD
billion/CD
,/,
a/DT
record/NN
./.
The/DT
$/$
6.07/CD
billion/CD
increase/NN
was/VBD
the/DT
strongest/JJS
weekly/JJ
inflow/NN
since/IN
January/NNP
1988/CD
./.
The/DT
increase/NN
was/VBD
spread/VBN
fairly/RB
evenly/RB
among/IN
all/DT
three/CD
types/NNS
of/IN
funds/NNS
./.
Individual/JJ
investors/NNS
,/,
represented/VBN
in/IN
the/DT
general-purpose/JJ
and/CC
broker-dealer/JJ
fund/NN
categories/NNS
,/,
pulled/VBD
money/NN
from/IN
the/DT
stock/NN
market/NN
after/IN
its/PRP$
big/JJ
drop/NN
last/JJ
Friday/NNP
and/CC
put/VBD
the/DT
money/NN
into/IN
funds/NNS
,/,
said/VBD
Jacob/NNP
Dreyer/NNP
,/,
vice/NN
president/NN
and/CC
chief/JJ
economist/NN
of/IN
the/DT
Institute/NNP
./.
``/``
Insitutional/JJ
investors/NNS
,/,
on/IN
the/DT
other/JJ
hand/NN
,/,
reacted/VBD
to/TO
the/DT
steep/JJ
decline/NN
in/IN
yields/NNS
on/IN
direct/JJ
money-market/JJ
instruments/NNS
following/VBG
the/DT
stock-market/NN
decline/NN
last/JJ
Friday/NNP
,/,
''/''
Mr./NNP
Dreyer/NNP
said/VBD
./.
Yields/NNS
on/IN
money/NN
funds/NNS
dropped/VBD
in/IN
the/DT
week/NN
ended/VBN
Tuesday/NNP
,/,
according/VBG
to/TO
Donoghue/NNP
's/POS
Money/NNP
Fund/NNP
Report/NNP
,/,
a/DT
Holliston/NNP
,/,
Mass./NNP
,/,
newsletter/NN
./.
The/DT
average/JJ
seven-day/JJ
compounded/VBN
yield/NN
fell/VBD
to/TO
8.55/CD
%/NN
from/IN
8.60/CD
%/NN
the/DT
week/NN
earlier/RBR
,/,
Donoghue/NNP
's/POS
said/VBD
./.
At/IN
the/DT
auction/NN
of/IN
six-month/JJ
U.S./NNP
Treasury/NNP
bills/NNS
on/IN
Monday/NNP
,/,
the/DT
average/JJ
yield/NN
fell/VBD
to/TO
7.61/CD
%/NN
from/IN
7.82/CD
%/NN
./.
Likewise/RB
,/,
certificates/NNS
of/IN
deposit/NN
on/IN
average/JJ
posted/VBD
lower/JJR
yields/NNS
in/IN
the/DT
week/NN
ended/VBD
Tuesday/NNP
./.
The/DT
142/CD
institutional-type/JJ
money/NN
funds/NNS
rose/VBD
$/$
2.23/CD
billion/CD
to/TO
$/$
85.49/CD
billion/CD
./.
The/DT
235/CD
general-purpose/JJ
funds/NNS
increased/VBD
$/$
2.53/CD
billion/CD
to/TO
$/$
116.56/CD
billion/CD
,/,
while/IN
96/CD
broker-dealer/JJ
funds/NNS
increased/VBD
$/$
1.3/CD
billion/CD
to/TO
$/$
154.05/CD
billion/CD
./.
Domestic/JJ
lending/NN
for/IN
real/JJ
estate/NN
and/CC
property/NN
development/NN
was/VBD
the/DT
source/NN
of/IN
Bank/NNP
Bumiputra/NNP
Malaysia/NNP
Bhd./NNP
's/POS
most/RBS
recent/JJ
spate/NN
of/IN
financial/JJ
troubles/NNS
,/,
the/DT
institution/NN
's/POS
executive/JJ
chairman/NN
,/,
Mohamed/NNP
Basir/NNP
Ismail/NNP
,/,
said/VBD
./.
Speaking/VBG
to/TO
reporters/NNS
this/DT
week/NN
after/IN
Bank/NNP
Bumiputra/NNP
's/POS
shareholders/NNS
approved/VBD
a/DT
rescue/NN
plan/NN
,/,
Tan/NNP
Sri/NNP
Basir/NNP
said/VBD
heavy/JJ
lending/VBG
to/TO
the/DT
property/NN
sector/NN
rocked/VBD
the/DT
bank/NN
when/WRB
property/NN
prices/NNS
in/IN
Malaysia/NNP
plummeted/VBD
in/IN
1984-85/CD
./.
He/PRP
said/VBD
the/DT
bank/NN
could/MD
n't/RB
wait/VB
any/DT
longer/RBR
for/IN
prices/NNS
to/TO
recover/VB
and/CC
for/IN
borrowers/NNS
to/TO
service/VB
their/PRP$
loans/NNS
./.
So/IN
the/DT
bank/NN
's/POS
board/NN
decided/VBD
to/TO
make/VB
1.23/CD
billion/CD
Malaysian/JJ
dollars/NNS
US$/$
457/CD
million/CD
provisions/NNS
for/IN
interest/NN
payments/NNS
from/IN
loans/NNS
previously/RB
recorded/VBN
as/IN
revenue/NN
but/CC
never/RB
actually/RB
received/VBN
by/IN
the/DT
bank/NN
,/,
and/CC
to/TO
submit/VB
a/DT
bailout/NN
package/NN
to/TO
replenish/VB
the/DT
bank/NN
's/POS
paid-up/JJ
capital/NN
./.
The/DT
predicament/NN
,/,
he/PRP
added/VBD
,/,
was/VBD
similar/JJ
to/TO
the/DT
Hong/NNP
Kong/NNP
1982-83/CD
property-price/JJ
collapse/NN
,/,
which/WDT
exposed/VBD
the/DT
involvement/NN
of/IN
Bank/NNP
Bumiputra/NNP
's/POS
former/JJ
subsidiary/NN
in/IN
the/DT
colony/NN
in/IN
the/DT
largest/JJS
banking/NN
scandal/NN
in/IN
Malaysia/NNP
's/POS
history/NN
./.
The/DT
subsidiary/NN
,/,
Bumiputra/NNP
Malaysia/NNP
Finance/NNP
Ltd./NNP
,/,
was/VBD
left/VBN
with/IN
M$/$
2.26/CD
billion/CD
in/IN
bad/JJ
loans/NNS
made/VBN
to/TO
Hong/NNP
Kong/NNP
property/NN
speculators/NNS
./.
Both/DT
episodes/NNS
wiped/VBD
out/RP
Bank/NNP
Bumiputra/NNP
's/POS
shareholders/NNS
'/POS
funds/NNS
./.
Each/DT
time/NN
,/,
the/DT
bank/NN
's/POS
90/CD
%/NN
shareholder/NN
--/:
Petroliam/NNP
Nasional/NNP
Bhd./NNP
,/,
or/CC
Petronas/NNP
,/,
the/DT
national/JJ
oil/NN
company/NN
--/:
has/VBZ
been/VBN
called/VBN
upon/IN
to/TO
rescue/VB
the/DT
institution/NN
./.
In/IN
five/CD
years/NNS
,/,
Petronas/NNP
,/,
which/WDT
became/VBD
the/DT
dominant/JJ
shareholder/NN
in/IN
a/DT
1984/CD
rescue/NN
exercise/NN
,/,
has/VBZ
spent/VBN
about/RB
M$/$
3.5/CD
billion/CD
to/TO
prop/VB
up/RP
the/DT
troubled/VBN
bank/NN
./.
Tan/NNP
Sri/NNP
Basir/NNP
said/VBD
the/DT
capital/NN
restructuring/NN
plan/NN
has/VBZ
been/VBN
approved/VBN
by/IN
Malaysia/NNP
's/POS
Capital/NNP
Issues/NNP
Committee/NNP
and/CC
central/JJ
bank/NN
./.
Malaysia/NNP
's/POS
High/NNP
Court/NNP
is/VBZ
expected/VBN
to/TO
approve/VB
the/DT
plan/NN
./.
Once/RB
the/DT
plan/NN
is/VBZ
approved/VBN
,/,
Tan/NNP
Sri/NNP
Basir/NNP
said/VBD
,/,
most/JJS
of/IN
Bank/NNP
Bumiputra/NNP
's/POS
nonperforming/VBG
loans/NNS
will/MD
have/VB
been/VBN
fully/RB
provided/VBN
for/IN
and/CC
the/DT
bank/NN
will/MD
be/VB
on/IN
track/NN
to/TO
report/VB
a/DT
pretax/JJ
profit/NN
of/IN
between/IN
M$/$
160/CD
million/CD
and/CC
M$/$
170/CD
million/CD
for/IN
the/DT
fiscal/JJ
year/NN
ending/VBG
March/NNP
31/CD
./.
For/IN
the/DT
previous/JJ
financial/JJ
year/NN
,/,
the/DT
bank/NN
would/MD
have/VB
reported/VBN
a/DT
pretax/JJ
profit/NN
of/IN
M$/$
168/CD
million/CD
if/IN
it/PRP
had/VBD
n't/RB
made/VBN
provisions/NNS
for/IN
the/DT
nonperforming/NN
loans/NNS
,/,
he/PRP
said/VBD
./.
Malaysia/NNP
's/POS
Banking/NNP
Secrecy/NNP
Act/NNP
prohibited/VBD
the/DT
bank/NN
from/IN
identifying/VBG
delinquent/JJ
borrowers/NNS
,/,
said/VBD
Tan/NNP
Sri/NNP
Basir/NNP
./.
But/CC
public/JJ
documents/NNS
indicate/VBP
10/CD
%/NN
or/CC
more/JJR
of/IN
the/DT
bank/NN
's/POS
provisions/NNS
were/VBD
made/VBN
for/IN
foregone/JJ
interest/NN
on/IN
a/DT
M$/$
200/CD
million/CD
loan/NN
to/TO
Malaysia/NNP
's/POS
dominant/JJ
political/JJ
party/NN
,/,
the/DT
United/NNP
Malays/NNP
National/NNP
Organization/NNP
,/,
to/TO
build/VB
its/PRP$
convention/NN
and/CC
headquarters/NN
complex/NN
in/IN
Kuala/NNP
Lumpur/NNP
./.
The/DT
loan/NN
to/TO
UMNO/NNP
was/VBD
made/VBN
in/IN
September/NNP
1983/CD
./.
``/``
We/PRP
lent/VBD
a/DT
lot/NN
of/IN
money/NN
all/DT
over/IN
the/DT
place/NN
,/,
''/''
said/VBD
Tan/NNP
Sri/NNP
Basir/NNP
,/,
who/WP
refused/VBD
to/TO
discuss/VB
the/DT
bank/NN
's/POS
outstanding/JJ
loans/NNS
to/TO
As/RB
well/RB
as/IN
the/DT
M$/$
1.23/CD
billion/CD
in/IN
provisions/NNS
announced/VBN
on/IN
Oct./NNP
6/CD
,/,
the/DT
restructuring/NN
package/NN
covers/VBZ
an/DT
additional/JJ
M$/$
450/CD
million/CD
in/IN
provisions/NNS
made/VBN
in/IN
earlier/JJR
years/NNS
but/CC
never/RB
reflected/VBN
in/IN
a/DT
reduction/NN
of/IN
the/DT
bank/NN
's/POS
paid-up/JJ
capital/NN
./.
At/IN
the/DT
end/NN
of/IN
the/DT
exercise/NN
,/,
the/DT
cash/NN
injection/NN
from/IN
Petronas/NNP
will/MD
increase/VB
the/DT
bank/NN
's/POS
paid-up/JJ
capital/NN
to/TO
M$/$
1.15/CD
billion/CD
after/IN
virtually/RB
being/VBG
wiped/VBD
out/RP
by/IN
the/DT
new/JJ
provisions/NNS
./.
Heidi/NNP
Ehman/NNP
might/MD
have/VB
stepped/VBD
from/IN
a/DT
recruiting/NN
poster/NN
for/IN
young/JJ
Republicans/NNS
./.
White/JJ
,/,
24/CD
years/NNS
old/JJ
,/,
a/DT
singer/NN
in/IN
her/PRP$
church/NN
choir/NN
,/,
she/PRP
symbolizes/VBZ
a/DT
generation/NN
that/WDT
gave/VBD
its/PRP$
heart/NN
and/CC
its/PRP$
vote/NN
to/TO
Ronald/NNP
Reagan/NNP
./.
``/``
I/PRP
felt/VBD
kind/NN
of/IN
safe/JJ
,/,
''/''
she/PRP
says/VBZ
./.
No/RB
longer/RBR
./.
When/WRB
the/DT
Supreme/NNP
Court/NNP
opened/VBD
the/DT
door/NN
this/DT
year/NN
to/TO
new/JJ
restrictions/NNS
on/IN
abortion/NN
,/,
Ms./NNP
Ehman/NNP
opened/VBD
her/PRP$
mind/NN
to/TO
Democratic/JJ
politics/NNS
./.
Then/RB
a/DT
political/JJ
novice/NN
,/,
she/PRP
stepped/VBD
into/IN
a/DT
whirl/NN
of/IN
``/``
pro-choice/JJ
''/''
marches/NNS
,/,
house/NN
parties/NNS
and/CC
fund-raisers/NNS
./.
Now/RB
she/PRP
leads/VBZ
a/DT
grassroots/NNS
abortion-rights/NNS
campaign/NN
in/IN
Passaic/NNP
County/NNP
for/IN
pro-choice/JJ
Democratic/JJ
gubernatorial/JJ
candidate/NN
James/NNP
Florio/NNP
./.
``/``
This/DT
is/VBZ
one/CD
where/WRB
I/PRP
cross/VBP
party/NN
lines/NNS
,/,
''/''
she/PRP
says/VBZ
,/,
rejecting/VBG
the/DT
anti-abortion/JJ
stance/NN
of/IN
Rep./NNP
Florio/NNP
's/POS
opponent/NN
,/,
Reagan-Republican/JJ
Rep./NNP
James/NNP
Courter/NNP
./.
``/``
People/NNS
my/PRP$
age/NN
thought/VBD
it/PRP
was/VBD
n't/RB
going/VBG
to/TO
be/VB
an/DT
issue/NN
./.
Now/RB
it/PRP
has/VBZ
--/:
especially/RB
for/IN
people/NNS
my/PRP$
age/NN
./.
''/''
Polls/NNS
bear/VBP
out/RP
this/DT
warning/NN
,/,
but/CC
after/IN
a/DT
decade/NN
of/IN
increased/VBN
Republican/JJ
influence/NN
here/RB
,/,
the/DT
new/JJ
politics/NNS
of/IN
abortion/NN
have/VBP
contributed/VBN
to/TO
a/DT
world/NN
turned/VBD
upside/RB
down/RB
for/IN
Mr./NNP
Courter/NNP
./.
Unless/IN
he/PRP
closes/VBZ
the/DT
gap/NN
,/,
Republicans/NNS
risk/NN
losing/VBG
not/RB
only/RB
the/DT
governorship/NN
but/CC
also/RB
the/DT
assembly/NN
next/IN
month/NN
./.
Going/VBG
into/IN
the/DT
1990s/CD
,/,
the/DT
GOP/NNP
is/VBZ
paying/VBG
a/DT
price/NN
for/IN
the/DT
same/JJ
conservative/JJ
social/JJ
agenda/NN
that/IN
it/PRP
used/VBD
to/TO
torment/VB
Democrats/NNS
in/IN
the/DT
past/NN
./.
This/DT
change/NN
comes/VBZ
less/RBR
from/IN
a/DT
shift/NN
in/IN
public/JJ
opinion/NN
,/,
which/WDT
has/VBZ
n't/RB
changed/VBD
much/RB
on/IN
abortion/NN
over/IN
the/DT
past/NN
decade/NN
,/,
than/IN
in/IN
the/DT
boundaries/NNS
of/IN
the/DT
debate/NN
./.
New/NNP
Jersey/NNP
's/POS
own/JJ
highest/JJS
court/NN
remains/VBZ
a/DT
liberal/JJ
bulwark/NN
against/IN
major/JJ
restrictions/NNS
on/IN
abortion/NN
,/,
but/CC
the/DT
U.S./NNP
Supreme/NNP
Court/NNP
ruling/NN
,/,
Webster/NNP
vs./IN
Missouri/NNP
,/,
has/VBZ
engaged/VBN
voters/NNS
across/IN
the/DT
nation/NN
who/WP
had/VBD
been/VBN
insulated/VBN
from/IN
the/DT
issue/NN
./.
Before/IN
July/NNP
,/,
pro-choice/JJ
voters/NNS
could/MD
safely/RB
make/VB
political/JJ
decisions/NNS
without/IN
focusing/VBG
narrowly/RB
on/IN
abortion/NN
./.
Now/RB
,/,
the/DT
threat/NN
of/IN
further/JJ
restrictions/NNS
adds/VBZ
a/DT
new/JJ
dimension/NN
,/,
bringing/VBG
an/DT
upsurge/NN
in/IN
political/JJ
activity/NN
by/IN
abortion-rights/JJ
forces/NNS
./.
A/DT
recent/JJ
pro-choice/JJ
rally/NN
in/IN
Trenton/NNP
drew/VBD
thousands/NNS
,/,
and/CC
in/IN
a/DT
major/JJ
reversal/NN
,/,
Congress/NNP
is/VBZ
defying/VBG
a/DT
presidential/JJ
veto/NN
and/CC
demanding/VBG
that/IN
Medicaid/NNP
abortions/NNS
be/VBP
permitted/VBN
in/IN
cases/NNS
of/IN
rape/NN
and/CC
incest/NN
./.
``/``
If/IN
Webster/NNP
had/VBD
n't/RB
happened/VBN
,/,
you/PRP
would/MD
n't/RB
be/VB
here/RB
,/,
''/''
Linda/NNP
Bowker/NNP
tells/VBZ
a/DT
reporter/NN
in/IN
the/DT
Trenton/NNP
office/NN
of/IN
the/DT
National/NNP
Organization/NNP
for/IN
Women/NNP
./.
``/``
We/PRP
could/MD
have/VB
shouted/VBD
from/IN
the/DT
rooftops/NNS
about/IN
Courter/NNP
.../:
and/CC
no/DT
one/PRP
would/MD
have/VB
heard/VBN
us/PRP
./.
''/''
New/NNP
Jersey/NNP
is/VBZ
a/DT
proving/NN
ground/NN
for/IN
this/DT
aggressive/JJ
women's-rights/JJ
movement/NN
this/DT
year/NN
./.
The/DT
infusion/NN
of/IN
activists/NNS
can/MD
bring/VB
a/DT
clash/NN
of/IN
cultures/NNS
./.
In/IN
Cherry/NNP
Hill/NNP
,/,
the/DT
National/NNP
Abortion/NNP
Rights/NNP
Action/NNP
League/NNP
,/,
whose/WP$
goal/NN
is/VBZ
to/TO
sign/VB
up/RP
50,000/CD
pro-choice/JJ
voters/NNS
,/,
targets/VBZ
a/DT
union/NN
breakfast/NN
to/TO
build/VB
labor/NN
support/NN
for/IN
its/PRP$
cause/NN
./.
The/DT
league/NN
organizers/NNS
seem/VBP
more/JJR
a/DT
fit/NN
with/IN
a/DT
convention/NN
next/JJ
door/NN
of/IN
young/JJ
aerobics/NNS
instructors/NNS
in/IN
leotards/NNS
than/IN
the/DT
beefy/JJ
union/NN
leaders/NNS
;/:
``/``
I/PRP
wish/VBP
I/PRP
could/MD
go/VB
work/VB
out/RP
,/,
''/''
says/VBZ
a/DT
slim/JJ
activist/NN
./.
A/DT
labor/NN
chief/NN
speaks/VBZ
sardonically/RB
of/IN
having/VBG
to/TO
``/``
man/VB
and/CC
woman/NN
''/''
Election/NNP
Day/NNP
phones/NNS
./.
No/DT
age/NN
group/NN
is/VBZ
more/RBR
sensitive/JJ
than/IN
younger/JJR
voters/NNS
,/,
like/IN
Ms./NNP
Ehman/NNP
./.
A/DT
year/NN
ago/RB
this/DT
fall/NN
,/,
New/NNP
Jersey/NNP
voters/NNS
under/IN
30/CD
favored/VBN
George/NNP
Bush/NNP
by/IN
56/CD
%/NN
to/TO
39/CD
%/NN
over/IN
Michael/NNP
Dukakis/NNP
,/,
according/VBG
to/TO
a/DT
survey/NN
then/RB
by/IN
Rutgers/NNP
University/NNP
's/POS
Eagleton/NNP
Institute/NNP
./.
A/DT
matching/VBG
Eagleton-Newark/NNP
Star/NNP
Ledger/NNP
poll/NN
last/JJ
month/NN
showed/VBD
a/DT
complete/JJ
reversal/NN
./.
Voters/NNS
in/IN
the/DT
same/JJ
age/NN
group/NN
backed/VBD
Democrat/NNP
Florio/NNP
55/CD
%/NN
to/TO
29/CD
%/NN
over/IN
Republican/NNP
Courter/NNP
./.
Abortion/NN
alone/RB
ca/MD
n't/RB
explain/VB
this/DT
shift/NN
,/,
but/CC
New/NNP
Jersey/NNP
is/VBZ
a/DT
model/NN
of/IN
how/WRB
so/RB
personal/JJ
an/DT
issue/NN
can/MD
become/VB
a/DT
baseline/NN
of/IN
sorts/NNS
in/IN
judging/VBG
a/DT
candidate/NN
./.
By/IN
a/DT
2-to-1/JJ
ratio/NN
,/,
voters/NNS
appear/VBP
more/JJR
at/IN
ease/NN
with/IN
Mr./NNP
Florio/NNP
's/POS
stance/NN
on/IN
abortion/NN
,/,
and/CC
polls/NNS
indicate/VBP
his/PRP$
lead/NN
widens/VBZ
when/WRB
the/DT
candidates/NNS
are/VBP
specifically/RB
linked/VBN
to/TO
the/DT
issue/NN
./.
``/``
The/DT
times/NNS
are/VBP
my/PRP$
times/NNS
,/,
''/''
says/VBZ
Mr./NNP
Florio/NNP
./.
The/DT
Camden/NNP
County/NNP
congressman/NN
still/RB
carries/VBZ
himself/PRP
with/IN
a/DT
trademark/NN
``/``
I'm-coming-down-your-throat/JJ
''/''
intensity/NN
,/,
but/CC
at/IN
a/DT
pause/NN
in/IN
Newark/NNP
's/POS
Columbus/NNP
Day/NNP
parade/NN
recently/RB
,/,
he/PRP
was/VBD
dancing/VBG
with/IN
his/PRP$
wife/NN
in/IN
the/DT
middle/NN
of/IN
the/DT
avenue/NN
in/IN
the/DT
city/NN
's/POS
old/JJ
Italian-American/JJ
ward/NN
./.
After/IN
losing/VBG
by/IN
fewer/JJR
than/IN
1,800/CD
votes/NNS
in/IN
the/DT
1981/CD
governor/NN
's/POS
race/NN
,/,
he/PRP
has/VBZ
prepared/VBN
himself/PRP
methodically/RB
for/IN
this/DT
moment/NN
,/,
including/VBG
deciding/VBG
in/IN
recent/JJ
years/NNS
he/PRP
could/MD
no/RB
longer/RB
support/VB
curbs/NNS
on/IN
federal/JJ
funding/NN
for/IN
Medicaid/NNP
abortions/NNS
./.
``/``
If/IN
you/PRP
're/VBP
going/VBG
to/TO
be/VB
consistent/JJ
and/CC
say/VB
it/PRP
is/VBZ
a/DT
constitutionally/RB
protected/VBN
right/NN
,/,
''/''
he/PRP
asks/VBZ
,/,
``/``
how/WRB
are/VBP
you/PRP
going/VBG
to/TO
say/VB
an/DT
upscale/JJ
woman/NN
who/WP
can/MD
drive/VB
to/TO
the/DT
hospital/NN
or/CC
clinic/NN
in/IN
a/DT
nice/JJ
car/NN
has/VBZ
a/DT
constitutional/JJ
right/NN
and/CC
someone/NN
who/WP
is/VBZ
not/RB
in/IN
great/JJ
shape/NN
financially/RB
does/VBZ
not/RB
?/.
''/''
Mr./NNP
Courter/NNP
,/,
by/IN
comparison/NN
,/,
seems/VBZ
a/DT
shadow/NN
of/IN
the/DT
confident/JJ
hawk/NN
who/WP
defended/VBD
Oliver/NNP
North/NNP
before/IN
national/JJ
cameras/NNS
at/IN
Iran-Contra/NNP
hearings/NNS
two/CD
years/NNS
ago/RB
./.
Looking/VBG
back/RB
,/,
he/PRP
says/VBZ
he/PRP
erred/VBD
by/IN
stating/VBG
his/PRP$
``/``
personal/JJ
''/''
opposition/NN
to/TO
abortion/NN
instead/RB
of/IN
assuring/VBG
voters/NNS
that/IN
he/PRP
would/MD
n't/RB
impose/VB
his/PRP$
views/NNS
on/IN
``/``
policy/NN
''/''
as/IN
governor/NN
./.
It/PRP
is/VBZ
a/DT
distinction/NN
that/IN
satisfies/NNS
neither/DT
side/NN
in/IN
the/DT
debate/NN
./.
``/``
He/PRP
does/VBZ
n't/RB
know/VB
himself/PRP
,/,
''/''
Kathy/NNP
Stanwick/NNP
of/IN
the/DT
Abortion/NNP
Rights/NNP
League/NNP
says/VBZ
of/IN
Mr./NNP
Courter/NNP
's/POS
position/NN
./.
Even/RB
abortion/NN
opponents/NNS
,/,
however/RB
angry/JJ
with/IN
Mr./NNP
Florio/NNP
,/,
ca/MD
n't/RB
hide/VB
their/PRP$
frustration/NN
with/IN
the/DT
Republican/NNP
's/POS
ambivalence/NN
./.
``/``
He/PRP
does/VBZ
n't/RB
want/VB
to/TO
lead/VB
the/DT
people/NNS
,/,
''/''
says/VBZ
Richard/NNP
Traynor/NNP
,/,
president/NN
of/IN
New/NNP
Jersey/NNP
Right/NNP
to/TO
Life/NNP
./.
Moreover/RB
,/,
by/IN
stepping/VBG
outside/IN
the/DT
state/NN
's/POS
pro-choice/JJ
tradition/NN
,/,
Mr./NNP
Courter/NNP
aggravates/VBZ
fears/NNS
that/IN
he/PRP
is/VBZ
too/RB
conservative/JJ
as/IN
well/RB
on/IN
more/RBR
pressing/VBG
concerns/NNS
such/JJ
as/IN
auto/NN
insurance/NN
rates/NNS
and/CC
the/DT
environment/NN
./.
He/PRP
hurt/VBD
himself/PRP
further/RBR
this/DT
summer/NN
by/IN
bringing/VBG
homosexual/JJ
issues/NNS
into/IN
the/DT
debate/NN
;/:
and/CC
by/IN
wavering/VBG
on/IN
this/DT
issue/NN
and/CC
abortion/NN
,/,
he/PRP
has/VBZ
weakened/VBN
his/PRP$
credibility/NN
in/IN
what/WP
is/VBZ
already/RB
a/DT
mean-spirited/JJ
campaign/NN
on/IN
both/DT
sides/NNS
./.
Elected/VBN
to/TO
Congress/NNP
in/IN
1978/CD
,/,
the/DT
48-year-old/JJ
Mr./NNP
Courter/NNP
is/VBZ
part/NN
of/IN
a/DT
generation/NN
of/IN
young/JJ
conservatives/NNS
who/WP
were/VBD
once/RB
very/RB
much/RB
in/IN
the/DT
lead/NN
of/IN
the/DT
rightward/JJ
shift/NN
under/IN
Mr./NNP
Reagan/NNP
./.
Like/IN
many/VB
of/IN
his/PRP$
colleagues/NNS
,/,
he/PRP
did/VBD
n't/RB
serve/VB
in/IN
Vietnam/NNP
in/IN
the/DT
1960s/CD
yet/CC
embraced/VBD
a/DT
hawkish/JJ
defense/NN
and/CC
foreign/JJ
policy/NN
--/:
even/RB
voting/VBG
against/IN
a/DT
1984/CD
resolution/NN
critical/JJ
of/IN
the/DT
U.S./NNP
mining/NN
of/IN
Nicaraguan/NNP
harbors/NNS
./.
Jack/NNP
Kemp/NNP
and/CC
the/DT
writers/NNS
Irving/NNP
Kristol/NNP
and/CC
George/NNP
Gilder/NNP
were/VBD
influences/VBZ
,/,
and/CC
Mr./NNP
Courter/NNP
's/POS
own/JJ
conservative/JJ
credentials/NNS
proved/VBD
useful/JJ
to/TO
the/DT
current/JJ
New/NNP
Jersey/NNP
GOP/NNP
governor/NN
,/,
Thomas/NNP
Kean/NNP
,/,
in/IN
the/DT
1981/CD
Republican/NNP
primary/NN
here/RB
./.
The/DT
same/JJ
partnership/NN
is/VBZ
now/RB
crucial/JJ
to/TO
Mr./NNP
Courter/NNP
's/POS
fortunes/NNS
,/,
but/CC
the/DT
abortion/NN
issue/NN
is/VBZ
only/RB
a/DT
reminder/NN
of/IN
the/DT
gap/NN
between/IN
his/PRP$
record/NN
and/CC
that/IN
of/IN
the/DT
more/RBR
moderate/JJ
,/,
pro-choice/JJ
Gov./NNP
Kean/NNP
./.
While/IN
the/DT
Warren/NNP
County/NNP
congressman/NN
pursued/VBD
an/DT
anti-government/NN
,/,
anti-tax/JJ
agenda/NN
in/IN
Washington/NNP
,/,
Gov./NNP
Kean/NNP
was/VBD
approving/VBG
increased/VBN
income/NN
and/CC
sales/NNS
taxes/NNS
at/IN
home/NN
and/CC
overseeing/VBG
a/DT
near/JJ
doubling/NN
in/IN
the/DT
size/NN
of/IN
New/NNP
Jersey/NNP
's/POS
budget/NN
in/IN
his/PRP$
eight/CD
years/NNS
in/IN
office/NN
./.
Kean/NNP
forces/NNS
play/VB
down/IN
any/DT
differences/NNS
with/IN
Mr./NNP
Courter/NNP
,/,
but/CC
this/DT
history/NN
makes/VBZ
it/PRP
harder/RB
for/IN
the/DT
conservative/JJ
to/TO
run/VB
against/IN
government/NN
./.
Mr./NNP
Courter/NNP
's/POS
free-market/JJ
plan/NN
to/TO
bring/VB
down/IN
auto/NN
insurance/NN
rates/NNS
met/VBD
criticism/NN
from/IN
Gov./NNP
Kean/NNP
's/POS
own/JJ
insurance/NN
commissioner/NN
./.
Mr./NNP
Courter/NNP
is/VBZ
further/RBR
hobbled/VBN
by/IN
a/DT
record/NN
of/IN
votes/NNS
opposed/VBN
to/TO
government/NN
regulation/NN
on/IN
behalf/NN
of/IN
consumers/NNS
./.
Fluent/NNP
in/IN
Spanish/NNP
from/IN
his/PRP$
days/NNS
in/IN
the/DT
Peace/NNP
Corps/NNP
,/,
Mr./NNP
Courter/NNP
actively/RB
courts/VBZ
minority/NN
voters/NNS
but/CC
seems/VBZ
oddly/RB
over/IN
his/PRP$
head/NN
./.
He/PRP
is/VBZ
warm/JJ
and/CC
polished/VBN
before/IN
a/DT
Puerto/NNP
Rican/NNP
Congress/NNP
in/IN
Asbury/NNP
Park/NNP
./.
Yet/RB
minutes/NNS
after/IN
promising/VBG
to/TO
appoint/VB
Hispanics/NNS
to/TO
high/JJ
posts/NNS
in/IN
state/NN
government/NN
,/,
he/PRP
is/VBZ
unable/JJ
to/TO
say/VB
whether/IN
he/PRP
has/VBZ
ever/RB
employed/VBN
any/DT
in/IN
his/PRP$
congressional/JJ
office/NN
./.
``/``
I/PRP
do/VBP
n't/RB
think/VB
we/PRP
do/VB
now/RB
,/,
''/''
he/PRP
says/VBZ
./.
``/``
I/PRP
think/VB
we/PRP
did/VBD
./.
''/''
Asked/VBD
the/DT
same/JJ
question/NN
after/IN
his/PRP$
appearance/NN
,/,
Democrat/NNP
Florio/NNP
identifies/VBZ
a/DT
staff/NN
member/NN
by/IN
name/NN
and/CC
explains/VBZ
her/PRP$
whereabouts/NN
today/NN
./.
When/WRB
he/PRP
is/VBZ
presented/VBN
with/IN
a/DT
poster/NN
celebrating/VBG
the/DT
organization/NN
's/POS
20th/JJ
anniversary/NN
,/,
he/PRP
recognizes/VBZ
a/DT
photograph/NN
of/IN
one/CD
of/IN
the/DT
founders/NNS
and/CC
recalls/VBZ
time/NN
spent/VBD
together/RB
in/IN
Camden/NNP
./.
Details/NNP
and/CC
Camden/NNP
are/VBP
essential/JJ
Florio/NNP
./.
Elected/VBN
to/TO
Congress/NNP
as/IN
a/DT
``/``
Watergate/NNP
baby/NN
''/''
in/IN
1974/CD
,/,
he/PRP
ran/VBD
for/IN
governor/NN
three/CD
years/NNS
later/RB
./.
In/IN
the/DT
opinion/NN
of/IN
many/JJ
,/,
he/PRP
has/VBZ
n't/RB
stopped/VBD
running/VBG
since/IN
,/,
even/RB
though/IN
he/PRP
declined/VBD
a/DT
rematch/NN
with/IN
Gov./NNP
Kean/NNP
in/IN
1985/CD
./.
His/PRP$
base/NN
in/IN
South/NNP
Jersey/NNP
and/CC
on/IN
the/DT
House/NNP
Energy/NNP
and/CC
Commerce/NNP
Committee/NNP
helped/VBD
him/PRP
sustain/VB
a/DT
network/NN
of/IN
political-action/JJ
committees/NNS
to/TO
preserve/VB
his/PRP$
edge/NN
./.
With/IN
limited/VBN
budgets/NNS
for/IN
television/NN
in/IN
a/DT
high-priced/JJ
market/NN
,/,
Mr./NNP
Florio/NNP
's/POS
higher/JJR
recognition/NN
than/IN
his/PRP$
rival/NN
is/VBZ
a/DT
major/JJ
advantage/NN
./.
More/RBR
than/IN
ever/RB
,/,
his/PRP$
pro-consumer/NN
and/CC
pro-environment/NN
record/NN
is/VBZ
in/IN
sync/NN
with/IN
the/DT
state/NN
./.
Auto/NN
insurance/NN
rates/NNS
are/VBP
soaring/VBG
./.
A/DT
toxic-waste-dump/JJ
fire/NN
destroyed/VBD
part/NN
of/IN
an/DT
interstate/JJ
highway/NN
this/DT
summer/NN
./.
In/IN
Monmouth/NNP
,/,
an/DT
important/JJ
swing/NN
area/NN
,/,
Republican/NNP
freeholders/NNS
now/RB
run/VB
on/IN
a/DT
slogan/NN
promising/VBG
to/TO
keep/VB
the/DT
county/NN
``/``
clean/JJ
and/CC
green/JJ
./.
''/''
Mr./NNP
Florio/NNP
savors/NNS
this/DT
vindication/NN
,/,
but/CC
at/IN
age/NN
52/CD
,/,
the/DT
congressman/NN
is/VBZ
also/RB
a/DT
product/NN
of/IN
his/PRP$
times/NNS
and/CC
losses/NNS
./.
He/PRP
speaks/VBZ
for/IN
the/DT
death/NN
penalty/NN
as/IN
if/IN
reading/VBG
from/IN
Exodus/NNP
21/CD
;/:
to/TO
increase/VB
state/NN
revenue/NN
he/PRP
focuses/VBZ
not/RB
on/IN
``/``
taxes/NNS
''/''
but/CC
on/IN
``/``
audits/NNS
''/''
to/TO
cut/VB
waste/NN
./.
Hard-hitting/JJ
consultants/NNS
match/VBP
ads/NNS
with/IN
Mr./NNP
Courter/NNP
's/POS
team/NN
,/,
and/CC
Mr./NNP
Florio/NNP
retools/VBZ
himself/PRP
as/IN
the/DT
lean/JJ
,/,
mean/JJ
Democratic/JJ
fighting/NN
machine/NN
of/IN
the/DT
1990s/CD
./.
Appealing/VBG
to/TO
a/DT
young/JJ
audience/NN
,/,
he/PRP
scraps/VBZ
an/DT
old/JJ
reference/NN
to/TO
Ozzie/NNP
and/CC
Harriet/NNP
and/CC
instead/RB
quotes/VBZ
the/DT
Grateful/NNP
Dead/NNP
./.
The/DT
lyric/NN
chosen/VBN
--/:
``/``
long/JJ
strange/JJ
night/NN
''/''
--/:
may/MD
be/VB
an/DT
apt/JJ
footnote/NN
to/TO
television/NN
spots/NNS
by/IN
both/DT
candidates/NNS
intended/VBN
to/TO
portray/VB
each/DT
other/JJ
as/IN
a/DT
liar/NN
./.
The/DT
Democratic/JJ
lawmaker/NN
fits/VBZ
a/DT
pattern/NN
of/IN
younger/JJR
reformers/NNS
arising/VBG
out/IN
of/IN
old/JJ
machines/NNS
,/,
but/CC
his/PRP$
ties/NNS
to/TO
Camden/NNP
remain/VBP
a/DT
sore/JJ
point/NN
because/IN
of/IN
the/DT
county/NN
's/POS
past/NN
corruption/NN
./.
His/PRP$
campaign/NN
hierarchy/NN
is/VBZ
chosen/VBN
from/IN
elsewhere/RB
in/IN
the/DT
state/NN
,/,
and/CC
faced/VBN
with/IN
criticism/NN
of/IN
a/DT
sweetheart/NN
bank/NN
investment/NN
,/,
he/PRP
has/VBZ
so/RB
far/RB
blunted/VBN
the/DT
issue/NN
by/IN
donating/VBG
the/DT
bulk/NN
of/IN
his/PRP$
profits/NNS
to/TO
his/PRP$
alma/JJ
mater/NN
,/,
Trenton/NNP
State/NNP
College/NNP
./.
Mr./NNP
Florio/NNP
's/POS
forcefulness/NN
on/IN
the/DT
abortion/NN
issue/NN
after/IN
the/DT
Webster/NNP
ruling/NN
divides/VBZ
some/DT
of/IN
his/PRP$
old/JJ
constituency/NN
./.
Pasquale/NNP
Pignatelli/NNP
,/,
an/DT
unlikely/JJ
but/CC
enthusiastic/JJ
pipe/NN
major/NN
in/IN
an/DT
Essex/NNP
County/NNP
Irish/JJ
bagpipe/NN
band/NN
,/,
speaks/VBZ
sadly/RB
of/IN
Mr./NNP
Florio/NNP
./.
``/``
I/PRP
am/VBP
a/DT
devout/JJ
Catholic/NNP
,/,
''/''
says/VBZ
Mr./NNP
Pignatelli/NNP
,/,
a/DT
40-year-old/JJ
health/NN
officer/NN
./.
``/``
I/PRP
ca/MD
n't/RB
support/VB
him/PRP
because/IN
of/IN
abortion/NN
./.
''/''
Bill/NNP
Wames/NNP
Sr./NNP
,/,
72/CD
,/,
is/VBZ
Catholic/NNP
too/RB
,/,
but/CC
unfazed/JJ
by/IN
Mr./NNP
Florio/NNP
's/POS
stand/NN
on/IN
abortion/NN
./.
A/DT
security/NN
guard/NN
at/IN
a/DT
cargo/NN
terminal/NN
,/,
he/PRP
wears/VBZ
a/DT
Sons/NNP
of/IN
Italy/NNP
jacket/NN
and/CC
cap/NN
celebrating/VBG
``/``
The/DT
US/NNP
1/CD
Band/NNP
./.
''/''
``/``
I/PRP
still/RB
think/VBP
the/DT
woman/NN
has/VBZ
the/DT
right/NN
to/TO
do/VB
with/IN
her/PRP$
body/NN
as/IN
she/PRP
pleases/VBZ
,/,
''/''
he/PRP
says/VBZ
./.
``/``
If/IN
you/PRP
want/VBP
more/JJR
opinions/NNS
ask/VB
my/PRP$
wife/NN
./.
She/PRP
has/VBZ
lots/NNS
of/IN
opinions/NNS
./.
''/''
Consumer/NN
prices/NNS
rose/VBD
a/DT
surprisingly/RB
moderate/JJ
0.2/CD
%/NN
in/IN
September/NNP
,/,
pushed/VBD
up/RB
mostly/RB
by/IN
a/DT
jump/NN
in/IN
clothing/NN
costs/NNS
,/,
the/DT
Labor/NNP
Department/NNP
reported/VBD
./.
Energy/NN
costs/NNS
,/,
which/WDT
drove/VBD
wholesale/JJ
prices/NNS
up/RB
sharply/RB
during/IN
the/DT
month/NN
,/,
continued/VBD
to/TO
decline/VB
at/IN
the/DT
retail/JJ
level/NN
,/,
pulling/VBG
down/RB
transportation/NN
and/CC
helping/VBG
to/TO
ease/VB
housing/NN
costs/NNS
./.
The/DT
report/NN
was/VBD
the/DT
brightest/JJS
news/NN
the/DT
financial/JJ
markets/NNS
had/VBD
seen/VBN
since/IN
before/RB
the/DT
stock/NN
market/NN
plunged/VBD
more/RBR
than/IN
190/CD
points/NNS
last/JJ
Friday/NNP
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
rallied/VBD
on/IN
the/DT
news/NN
,/,
closing/VBG
39.55/CD
points/NNS
higher/RBR
at/IN
2683.20/CD
./.
Bond/NN
prices/NNS
also/RB
jumped/VBD
as/IN
traders/NNS
appeared/VBD
to/TO
read/VB
the/DT
data/NNS
as/IN
a/DT
sign/NN
that/IN
interest/NN
rates/NNS
may/MD
fall/VB
./.
But/CC
many/JJ
economists/NNS
were/VBD
not/RB
nearly/RB
as/IN
jubilant/JJ
./.
The/DT
climb/NN
in/IN
wholesale/JJ
energy/NN
prices/NNS
is/VBZ
certain/JJ
to/TO
push/VB
up/RB
retail/JJ
energy/NN
prices/NNS
in/IN
the/DT
next/JJ
few/JJ
months/NNS
,/,
they/PRP
warned/VBD
./.
They/PRP
also/RB
said/VBD
the/DT
dollar/NN
is/VBZ
leveling/VBG
off/RP
after/IN
a/DT
rise/NN
this/DT
summer/NN
that/WDT
helped/VBD
to/TO
reduce/VB
the/DT
prices/NNS
of/IN
imported/VBN
goods/NNS
./.
``/``
I/PRP
think/VBP
inflation/NN
is/VBZ
going/VBG
to/TO
pick/VB
up/RP
through/IN
the/DT
fall/NN
,/,
''/''
said/VBD
Joel/NNP
Popkin/NNP
,/,
a/DT
specialist/NN
on/IN
inflation/NN
who/WP
runs/VBZ
an/DT
economic/JJ
consulting/NN
firm/NN
here/RB
./.
``/``
It/PRP
has/VBZ
been/VBN
in/IN
what/WP
I/PRP
would/MD
describe/VB
as/IN
a/DT
lull/NN
for/IN
the/DT
past/JJ
several/JJ
months/NNS
./.
''/''
``/``
We/PRP
've/VBP
had/VBD
whopping/JJ
declines/NNS
in/IN
consumer/NN
energy/NN
prices/NNS
in/IN
each/DT
of/IN
the/DT
past/JJ
three/CD
months/NNS
,/,
and/CC
at/IN
the/DT
wholesale/JJ
level/NN
those/DT
are/VBP
fully/RB
behind/IN
us/PRP
now/RB
,/,
''/''
said/VBD
Jay/NNP
Woodworth/NNP
,/,
chief/JJ
domestic/JJ
economist/NN
at/IN
Bankers/NNP
Trust/NNP
Co./NNP
in/IN
New/NNP
York/NNP
./.
Because/IN
wholesale/JJ
energy/NN
prices/NNS
shot/VBD
up/RB
by/IN
a/DT
steep/JJ
6.5/CD
%/NN
last/JJ
month/NN
,/,
many/JJ
analysts/NNS
expected/VBD
energy/NN
prices/NNS
to/TO
rise/VB
at/IN
the/DT
consumer/NN
level/NN
too/RB
./.
As/IN
a/DT
result/NN
,/,
many/JJ
economists/NNS
were/VBD
expecting/VBG
the/DT
consumer/NN
price/NN
index/NN
to/TO
increase/VB
significantly/RB
more/RBR
than/IN
it/PRP
did/VBD
./.
But/CC
retail/JJ
energy/NN
prices/NNS
declined/VBD
0.9/CD
%/NN
in/IN
September/NNP
./.
Though/IN
analysts/NNS
say/VBP
competition/NN
will/MD
probably/RB
hold/VB
down/RB
increases/NNS
in/IN
retail/JJ
energy/NN
prices/NNS
,/,
many/JJ
expect/VBP
some/DT
of/IN
the/DT
wholesale/JJ
rise/NN
to/TO
be/VB
passed/VBN
along/RP
to/TO
the/DT
consumer/NN
before/IN
the/DT
end/NN
of/IN
the/DT
year/NN
./.
Still/RB
,/,
some/DT
analysts/NNS
insisted/VBD
that/IN
the/DT
worst/JJS
of/IN
the/DT
inflation/NN
is/VBZ
behind/RB
./.
``/``
It/PRP
increasingly/RB
appears/VBZ
that/IN
1987-88/CD
was/VBD
a/DT
temporary/JJ
inflation/NN
blip/NN
and/CC
not/RB
the/DT
beginning/NN
of/IN
a/DT
cyclical/JJ
inflation/NN
problem/NN
,/,
''/''
argued/VBD
Edward/NNP
Yardeni/NNP
,/,
chief/JJ
economist/NN
at/IN
Prudential-Bache/NNP
Securities/NNP
Inc./NNP
in/IN
New/NNP
York/NNP
./.
In/IN
both/DT
1987/CD
and/CC
1988/CD
,/,
consumer/NN
prices/NNS
rose/VBD
4.4/CD
%/NN
./.
A/DT
run-up/NN
in/IN
world/NN
oil/NN
prices/NNS
last/JJ
winter/NN
sent/VBD
consumer/NN
prices/NNS
soaring/VBG
at/IN
a/DT
6.7/CD
%/NN
annual/JJ
rate/NN
in/IN
the/DT
first/JJ
five/CD
months/NNS
of/IN
this/DT
year/NN
,/,
but/CC
the/DT
subsequent/JJ
decline/NN
in/IN
energy/NN
prices/NNS
has/VBZ
pulled/VBN
the/DT
annual/JJ
rate/NN
back/RB
down/RB
to/TO
4.4/CD
%/NN
./.
Mr./NNP
Yardeni/NNP
predicted/VBD
that/IN
world/NN
business/NN
competition/NN
will/MD
continue/VB
to/TO
restrain/VB
prices/NNS
./.
``/``
The/DT
bottom/JJ
line/NN
is/VBZ
,/,
it/PRP
seems/VBZ
to/TO
me/PRP
that/IN
the/DT
economic/JJ
environment/NN
has/VBZ
become/VBN
very/RB
,/,
very/RB
competitve/JJ
for/IN
a/DT
lot/NN
of/IN
businesses/NNS
,/,
''/''
he/PRP
said/VBD
./.
``/``
Back/RB
in/IN
1987-88/CD
,/,
business/NN
was/VBD
operating/VBG
at/IN
fairly/RB
tight/JJ
capacity/NN
,/,
so/IN
businesses/NNS
felt/VBD
they/PRP
could/MD
raise/VB
prices/NNS
./.
''/''
Now/RB
,/,
he/PRP
said/VBD
,/,
a/DT
slowdown/NN
in/IN
economic/JJ
activity/NN
has/VBZ
slackened/VBN
demand/NN
./.
The/DT
mild/JJ
inflation/NN
figures/NNS
renewed/VBD
investors/NNS
'/POS
hopes/NNS
that/IN
the/DT
Federal/NNP
Reserve/NNP
will/MD
ease/VB
its/PRP$
interest-rate/NN
stance/NN
./.
The/DT
steep/JJ
climb/NN
in/IN
producer/NN
prices/NNS
reported/VBN
last/JJ
Friday/NNP
fostered/VBD
pessimism/NN
about/IN
lower/JJR
interest/NN
rates/NNS
and/CC
contributed/VBD
to/TO
the/DT
stock/NN
market/NN
's/POS
6.9/CD
%/NN
plunge/NN
that/DT
day/NN
./.
In/IN
the/DT
past/JJ
several/JJ
days/NNS
,/,
however/RB
,/,
the/DT
U.S./NNP
's/POS
central/JJ
bank/NN
has/VBZ
allowed/VBN
a/DT
key/JJ
interest/NN
rate/NN
to/TO
fall/VB
slightly/RB
to/TO
try/VB
to/TO
stabilize/VB
the/DT
markets/NNS
./.
Analysts/NNS
say/VBP
Fed/NNP
policy/NN
makers/NNS
have/VBP
been/VBN
wary/JJ
of/IN
relaxing/VBG
credit/NN
too/RB
much/RB
because/IN
they/PRP
were/VBD
still/RB
uncertain/JJ
about/IN
the/DT
level/NN
of/IN
inflation/NN
in/IN
the/DT
economy/NN
./.
Excluding/VBG
the/DT
volatile/JJ
categories/NNS
of/IN
energy/NN
and/CC
food/NN
--/:
leaving/VBG
what/WP
some/DT
economists/NNS
call/VBP
the/DT
core/NN
inflation/NN
rate/NN
--/:
consumer/NN
prices/NNS
still/RB
rose/VBD
only/RB
0.2/CD
%/NN
in/IN
September/NNP
./.
Transportation/NN
costs/NNS
actually/RB
fell/VBD
0.5/CD
%/NN
,/,
and/CC
housing/NN
costs/NNS
gained/VBD
only/RB
0.1/CD
%/NN
./.
Apparel/NN
prices/NNS
rocketed/VBD
up/RB
1.7/CD
%/NN
,/,
but/CC
that/DT
was/VBD
after/IN
three/CD
months/NNS
of/IN
declines/NNS
./.
Medical/JJ
costs/NNS
continued/VBD
their/PRP$
steep/NN
ascent/NN
,/,
rising/VBG
0.8/CD
%/NN
after/IN
four/CD
consecutive/JJ
months/NNS
of/IN
0.7/CD
%/NN
increases/NNS
./.
Car/NN
prices/NNS
,/,
another/DT
area/NN
that/WDT
contributed/VBD
to/TO
the/DT
steep/JJ
rise/NN
in/IN
the/DT
wholesale/JJ
index/NN
last/JJ
month/NN
,/,
still/RB
showed/VBD
declines/NNS
at/IN
the/DT
consumer/NN
level/NN
./.
They/PRP
dropped/VBD
0.4/CD
%/NN
as/IN
dealers/NNS
continued/VBD
to/TO
offer/VB
rebates/NNS
to/TO
attract/VB
customers/NNS
./.
Food/NN
prices/NNS
rose/VBD
0.2/CD
%/NN
for/IN
the/DT
second/JJ
month/NN
in/IN
a/DT
row/NN
,/,
far/RB
slower/RBR
than/IN
the/DT
monthly/NN
rises/NNS
earlier/RBR
in/IN
the/DT
year/NN
./.
Separately/RB
,/,
the/DT
Labor/NNP
Department/NNP
reported/VBD
that/IN
average/JJ
weekly/JJ
earnings/NNS
rose/VBD
0.3/CD
%/NN
in/IN
September/NNP
,/,
after/IN
adjusting/VBG
for/IN
inflation/NN
,/,
following/VBG
a/DT
0.7/CD
%/NN
decline/NN
in/IN
August/NNP
./.
All/DT
the/DT
numbers/NNS
are/VBP
adjusted/VBN
for/IN
seasonal/JJ
fluctuations/NNS
./.
Here/RB
are/VBP
the/DT
seasonally/RB
adjusted/VBN
changes/NNS
in/IN
the/DT
components/NNS
of/IN
the/DT
Labor/NNP
Department/NNP
's/POS
consumer/NN
price/NN
index/NN
for/IN
September/NNP
./.
September/NNP
consumer/NN
price/NN
indexes/NNS
1982-1984/CD
equals/VBZ
100/CD
seasonal/JJ
variation/NN
,/,
together/RB
with/IN
the/DT
percentage/NN
increases/NNS
from/IN
September/NNP
1988/CD
,/,
were/VBD
:/:
After/RB
watching/VBG
interest/NN
in/IN
the/DT
sport/NN
plummet/VB
for/IN
years/NNS
,/,
the/DT
ski/NN
industry/NN
is/VBZ
trying/VBG
to/TO
give/VB
itself/PRP
a/DT
lift/NN
./.
Across/IN
the/DT
country/NN
,/,
resorts/NNS
are/VBP
using/VBG
everything/NN
from/IN
fireworks/NNS
to/TO
classical-music/JJ
concerts/NNS
to/TO
attract/VB
new/JJ
customers/NNS
./.
Some/DT
have/VBP
built/VBN
health/NN
spas/NNS
,/,
business/NN
centers/NNS
and/CC
shopping/NN
villages/NNS
so/IN
visitors/NNS
have/VBP
more/JJR
to/TO
do/VB
than/IN
ski/VB
./.
And/CC
this/DT
week/NN
,/,
the/DT
industry/NN
's/POS
efforts/NNS
will/MD
go/VB
national/JJ
for/IN
the/DT
first/JJ
time/NN
when/WRB
it/PRP
unveils/VBZ
a/DT
$/$
7/CD
million/CD
advertising/NN
campaign/NN
./.
Such/JJ
efforts/NNS
--/:
unheard/JJ
of/RP
only/RB
a/DT
few/JJ
years/NNS
ago/RB
--/:
are/VBP
the/DT
latest/JJS
attempts/NNS
to/TO
revive/VB
the/DT
sagging/VBG
$/$
1.76/CD
billion/CD
U.S./NNP
ski/NN
industry/NN
./.
Since/IN
the/DT
start/NN
of/IN
the/DT
decade/NN
,/,
lift-ticket/JJ
sales/NNS
have/VBP
grown/VBN
only/RB
3/CD
%/NN
a/DT
year/NN
on/IN
average/NN
,/,
compared/VBN
with/IN
16/CD
%/NN
annual/JJ
growth/NN
rates/NNS
in/IN
the/DT
'60s/NNS
and/CC
'70s/NNS
./.
Last/JJ
season/NN
,/,
lift-ticket/NN
sales/NNS
fell/VBD
for/IN
the/DT
first/JJ
time/NN
in/IN
seven/CD
years/NNS
./.
By/IN
some/DT
estimates/NNS
,/,
nearly/RB
a/DT
fourth/JJ
of/IN
all/DT
U.S./NNP
ski/NN
areas/NNS
have/VBP
been/VBN
forced/VBN
to/TO
shut/VB
down/RP
since/IN
the/DT
early/JJ
'80s/NNS
./.
Competition/NN
and/CC
mounting/VBG
insurance/NN
and/CC
equipment/NN
costs/NNS
have/VBP
been/VBN
the/DT
undoing/NN
of/IN
many/JJ
resorts/NNS
./.
But/CC
another/DT
big/JJ
problem/NN
has/VBZ
been/VBN
the/DT
aging/NN
of/IN
baby/NN
boomers/NNS
./.
Skiing/NN
,/,
after/IN
all/DT
,/,
has/VBZ
mainly/RB
been/VBN
for/IN
the/DT
young/JJ
and/CC
daring/JJ
and/CC
many/JJ
baby/NN
boomers/NNS
have/VBP
outgrown/VBN
skiing/NN
or/CC
have/VBP
too/RB
many/JJ
family/NN
responsibilities/NNS
to/TO
stick/VB
with/IN
the/DT
sport/NN
./.
In/IN
its/PRP$
new/JJ
ad/NN
campaign/NN
,/,
created/VBN
by/IN
D'Arcy/NNP
Masius/NNP
Benton/NNP
&/CC
Bowles/NNP
Inc./NNP
,/,
Chicago/NNP
,/,
the/DT
ski/NN
industry/NN
is/VBZ
trying/VBG
to/TO
change/VB
its/PRP$
image/NN
as/IN
a/DT
sport/NN
primarily/RB
for/IN
young/JJ
white/JJ
people/NNS
./.
One/CD
60-second/JJ
TV/NN
spot/NN
features/VBZ
a/DT
diverse/JJ
group/NN
of/IN
skiers/NNS
gracefully/RB
gliding/VBG
down/RB
sun-drenched/JJ
slopes/NNS
:/:
senior/JJ
citizens/NNS
,/,
minorities/NNS
,/,
families/NNS
with/IN
children/NNS
--/:
even/RB
a/DT
blind/JJ
skier/NN
./.
``/``
Ski/NN
school/NN
is/VBZ
great/JJ
,/,
''/''
cries/VBZ
out/RP
a/DT
tot/NN
,/,
bundled/VBN
in/IN
a/DT
snowsuit/NN
as/IN
he/PRP
plows/VBZ
down/RB
a/DT
bunny/NN
slope/NN
./.
``/``
You/PRP
'll/MD
never/RB
know/VB
'til/RB
you/PRP
try/VBP
,/,
''/''
says/VBZ
a/DT
black/JJ
skier/NN
./.
``/``
We/PRP
used/VBD
to/TO
show/VB
some/DT
hot-dog/JJ
skier/NN
in/IN
his/PRP$
twenties/NNS
or/CC
thirties/NNS
going/VBG
over/IN
the/DT
edge/NN
of/IN
a/DT
cliff/NN
,/,
''/''
says/VBZ
Kathe/NNP
Dillmann/NNP
,/,
a/DT
spokeswoman/NN
for/IN
the/DT
United/NNP
Ski/NNP
Industries/NNP
Association/NNP
,/,
the/DT
trade/NN
group/NN
sponsoring/VBG
the/DT
campaign/NN
./.
Ski/NN
promotions/NNS
have/VBP
traditionally/RB
avoided/VBN
the/DT
touchy/JJ
issue/NN
of/IN
safety/NN
./.
But/CC
the/DT
new/JJ
commercials/NNS
deal/VBP
with/IN
it/PRP
indirectly/RB
by/IN
showing/VBG
a/DT
woman/NN
smiling/VBG
as/IN
she/PRP
tries/VBZ
to/TO
get/VB
up/RP
from/IN
a/DT
fall/NN
./.
``/``
We/PRP
wanted/VBD
to/TO
show/VB
it/PRP
's/VBZ
okay/JJ
if/IN
you/PRP
fall/VBP
,/,
''/''
says/VBZ
Ms./NNP
Dillmann/NNP
./.
``/``
Most/JJS
people/NNS
think/VBP
if/IN
you/PRP
slip/VBP
,/,
you/PRP
'll/MD
wind/VB
up/RP
in/IN
a/DT
body/NN
cast/NN
./.
''/''
The/DT
ad/NN
campaign/NN
represents/VBZ
an/DT
unusual/JJ
spirit/NN
of/IN
cooperation/NN
among/IN
resorts/NNS
and/CC
ski/NN
equipment/NN
makers/NNS
;/:
normally/RB
,/,
they/PRP
only/RB
run/VBP
ads/NNS
hyping/VBG
their/PRP$
own/JJ
products/NNS
and/CC
facilities/NNS
./.
But/CC
in/IN
these/DT
crunch/NN
times/NNS
for/IN
the/DT
ski/NN
industry/NN
,/,
some/DT
resorts/NNS
,/,
such/JJ
as/IN
the/DT
Angel/NNP
Fire/NNP
,/,
Red/NNP
River/NNP
and/CC
Taos/NNP
ski/NN
areas/NNS
in/IN
New/NNP
Mexico/NNP
,/,
have/VBP
even/RB
started/VBN
shuttle-busing/NN
skiers/NNS
to/TO
each/DT
other/JJ
's/POS
slopes/NNS
and/CC
next/JJ
year/NN
plan/VBP
to/TO
sell/VB
tickets/NNS
good/JJ
for/IN
all/DT
local/JJ
lifts/NNS
./.
Many/JJ
resorts/NNS
also/RB
are/VBP
focusing/VBG
more/RBR
on/IN
the/DT
service/NN
side/NN
of/IN
their/PRP$
business/NN
./.
Since/IN
40/CD
%/NN
of/IN
skiers/NNS
are/VBP
parents/NNS
,/,
many/JJ
slopes/NNS
are/VBP
building/VBG
nurseries/NNS
,/,
expanding/VBG
ski/JJ
schools/NNS
and/CC
adding/VBG
entertainment/NN
for/IN
kids/NNS
./.
Vail/NNP
,/,
Colo./NNP
,/,
now/RB
has/VBZ
a/DT
playland/NN
that/WDT
looks/VBZ
like/IN
an/DT
old/JJ
mining/NN
town/NN
;/:
kids/NNS
can/MD
ski/VB
through/IN
and/CC
pan/VB
for/IN
fool/NN
's/POS
gold/NN
./.
For/IN
$/$
15/CD
,/,
they/PRP
can/MD
enjoy/VB
their/PRP$
own/JJ
nightly/JJ
entertainment/NN
,/,
with/IN
dinner/NN
,/,
without/IN
mom/NN
and/CC
dad/NN
./.
A/DT
few/JJ
years/NNS
ago/RB
,/,
parents/NNS
usually/RB
had/VBD
to/TO
hire/VB
a/DT
sitter/NN
or/CC
take/VB
turns/NNS
skiing/VBG
while/IN
one/CD
spouse/NN
stayed/VBD
with/IN
the/DT
children/NNS
./.
``/``
Most/JJS
parents/NNS
who/WP
had/VBD
to/TO
go/VB
through/IN
that/WDT
never/RB
came/VBD
back/RB
,/,
''/''
says/VBZ
Michael/NNP
Shannon/NNP
,/,
president/NN
of/IN
Vail/NNP
Associates/NNP
Inc./NNP
,/,
which/WDT
owns/VBZ
and/CC
operates/VBZ
the/DT
Vail/NNP
and/CC
nearby/JJ
Beaver/NNP
Creek/NNP
resorts/NNS
./.
To/TO
make/VB
skiing/NN
more/RBR
convenient/JJ
for/IN
time-strapped/JJ
visitors/NNS
,/,
several/JJ
resorts/NNS
are/VBP
buying/VBG
or/CC
starting/VBG
their/PRP$
own/JJ
travel/NN
agencies/NNS
./.
In/IN
one/CD
phone/NN
call/NN
,/,
ski/NN
buffs/NNS
can/MD
make/VB
hotel/NN
and/CC
restaurant/NN
reservations/NNS
,/,
buy/VB
lift/NN
tickets/NNS
,/,
rent/VB
ski/JJ
equipment/NN
and/CC
sign/VB
up/RP
for/IN
lessons/NNS
./.
And/CC
resorts/NNS
are/VBP
adding/VBG
other/JJ
amenities/NNS
,/,
such/JJ
as/IN
pricey/JJ
restaurants/NNS
,/,
health/NN
spas/NNS
and/CC
vacation/NN
packages/NNS
with/IN
a/DT
twist/NN
./.
During/IN
Winter/NNP
Carnival/NNP
week/NN
,/,
for/IN
example/NN
,/,
visitors/NNS
at/IN
Sunday/NNP
River/NNP
in/IN
Maine/NNP
can/MD
take/VB
a/DT
hot-air/JJ
balloon/NN
ride/NN
./.
``/``
People/NNS
these/DT
days/NNS
want/VBP
something/NN
else/RB
to/TO
do/VB
besides/IN
ski/VB
and/CC
sit/VB
in/IN
the/DT
bar/NN
,/,
''/''
says/VBZ
Don/NNP
Borgeson/NNP
,/,
executive/JJ
director/NN
of/IN
Angel/NNP
Fire/NNP
,/,
N.M./NNP
's/POS
Chamber/NNP
of/IN
Commerce/NNP
./.
The/DT
ski/NN
industry/NN
hopes/VBZ
to/TO
increase/VB
the/DT
number/NN
of/IN
skiers/NNS
by/IN
3.5/CD
million/CD
to/TO
about/RB
21.7/CD
million/CD
in/IN
the/DT
next/JJ
five/CD
years/NNS
with/IN
its/PRP$
latest/JJS
ads/NNS
and/CC
promotions/NNS
./.
But/CC
some/DT
think/VBP
that/DT
's/VBZ
being/VBG
overly/RB
optimistic/JJ
./.
For/IN
one/CD
thing/NN
,/,
it/PRP
may/MD
be/VB
tough/JJ
to/TO
attract/VB
people/NNS
because/IN
skiing/NN
is/VBZ
still/RB
expensive/JJ
:/:
a/DT
lift/NN
ticket/NN
can/MD
cost/VB
up/IN
to/TO
$/$
35/CD
a/DT
day/NN
and/CC
equipment/NN
prices/NNS
are/VBP
rising/VBG
./.
And/CC
most/JJS
vacationers/NNS
still/RB
prefer/VBP
a/DT
warm/JJ
climate/NN
for/IN
their/PRP$
winter/NN
excursions/NNS
./.
An/DT
American/NNP
Express/NNP
Co./NNP
survey/NN
of/IN
its/PRP$
travel/NN
agents/NNS
revealed/VBD
that/IN
only/RB
34/CD
%/NN
believe/VBP
their/PRP$
clients/NNS
will/MD
pick/VB
a/DT
trip/NN
this/DT
winter/NN
based/VBN
on/IN
the/DT
availability/NN
of/IN
winter/NN
sports/NNS
,/,
as/IN
opposed/VBN
to/TO
69/CD
%/NN
who/WP
think/VBP
that/IN
warm-weather/JJ
sports/NNS
will/MD
be/VB
the/DT
deciding/VBG
factor/NN
./.
``/``
Even/RB
if/IN
they/PRP
could/MD
bring/VB
in/IN
that/DT
many/JJ
new/JJ
skiers/NNS
,/,
I/PRP
do/VBP
n't/RB
know/VB
if/IN
{/(
the/DT
industry/NN
that/DT
kind/NN
of/IN
an/DT
increase/NN
,/,
''/''
says/VBZ
I./NNP
William/NNP
Berry/NNP
,/,
editor/NN
and/CC
publisher/NN
of/IN
the/DT
Ski/NNP
Industry/NNP
Letter/NNP
in/IN
Katonah/NNP
,/,
N.Y/NNP
./.
``/``
Most/JJS
people/NNS
will/MD
come/VB
on/IN
the/DT
weekend/NN
,/,
the/DT
slopes/NNS
will/MD
be/VB
overcrowded/JJ
and/CC
then/RB
these/DT
{/(
new/JJ
skiers/NNS
''/''
They/PRP
did/VBD
n't/RB
play/VB
the/DT
third/JJ
game/NN
of/IN
the/DT
World/NNP
Series/NNP
on/IN
Tuesday/NNP
night/NN
as/IN
scheduled/VBN
,/,
and/CC
they/PRP
did/VBD
n't/RB
play/VB
it/PRP
on/IN
Wednesday/NNP
or/CC
Thursday/NNP
either/RB
./.
But/CC
you/PRP
knew/VBD
that/IN
,/,
did/VBD
n't/RB
you/PRP
?/.
They/PRP
are/VBP
supposed/VBN
to/TO
play/VB
the/DT
game/NN
next/IN
Tuesday/NNP
,/,
in/IN
Candlestick/NNP
Park/NNP
here/RB
./.
The/DT
theory/NN
is/VBZ
that/IN
the/DT
stadium/NN
,/,
damaged/VBN
by/IN
Tuesday/NNP
's/POS
earthquake/NN
,/,
will/MD
be/VB
repaired/VBN
by/IN
then/RB
,/,
and/CC
that/IN
people/NNS
will/MD
be/VB
able/JJ
to/TO
get/VB
there/RB
./.
Like/IN
just/RB
about/IN
everything/NN
else/RB
,/,
that/WDT
remains/VBZ
to/TO
be/VB
seen/VBN
./.
Aftershocks/NNS
could/MD
intervene/VB
./.
But/CC
,/,
at/IN
least/JJS
,/,
the/DT
law/NN
of/IN
averages/NNS
should/MD
have/VB
swung/VBN
to/TO
the/DT
favorable/JJ
side/NN
./.
It/PRP
may/MD
seem/VB
trivial/JJ
to/TO
worry/VB
about/IN
the/DT
World/NNP
Series/NNP
amid/IN
the/DT
destruction/NN
to/TO
the/DT
Bay/NNP
Area/NNP
wrought/VBD
by/IN
Tuesday/NNP
's/POS
quake/NN
,/,
but/CC
the/DT
name/NN
of/IN
this/DT
column/NN
is/VBZ
``/``
On/IN
Sports/NNS
,/,
''/''
so/IN
I/PRP
feel/VBP
obliged/VBN
to/TO
do/VB
so/RB
./.
You/PRP
might/MD
be/VB
interested/VBN
to/TO
know/VB
that/DT
baseball/NN
,/,
not/RB
survival/NN
,/,
appeared/VBD
to/TO
be/VB
the/DT
first/JJ
thought/NN
of/IN
most/JJS
of/IN
the/DT
crowd/NN
of/IN
60,000-odd/JJ
that/WDT
had/VBD
gathered/VBN
at/IN
Candlestick/NNP
at/IN
5:04/CD
p.m./NN
Tuesday/NNP
,/,
a/DT
half-hour/NN
before/IN
game/NN
time/NN
,/,
when/WRB
the/DT
quake/NN
struck/VBD
./.
As/RB
soon/RB
as/IN
the/DT
tremor/NN
passed/VBD
,/,
many/JJ
people/NNS
spontaneously/RB
arose/VBD
and/CC
cheered/VBD
,/,
as/IN
though/IN
it/PRP
had/VBD
been/VBN
a/DT
novel/JJ
kind/NN
of/IN
pre-game/JJ
show/NN
./.
One/CD
fan/NN
,/,
seated/VBN
several/JJ
rows/NNS
in/IN
front/NN
of/IN
the/DT
open/JJ
,/,
upper-deck/JJ
auxiliary/JJ
press/NN
section/NN
where/WRB
I/PRP
was/VBD
stationed/VBN
,/,
faced/VBD
the/DT
assembled/VBN
newsies/NNS
and/CC
laughingly/RB
shouted/VBD
,/,
``/``
We/PRP
arranged/VBD
that/DT
just/RB
for/IN
you/PRP
guys/NNS
!/.
''/''
I/PRP
thought/VBD
and/CC
,/,
I/PRP
'm/VBP
sure/JJ
,/,
others/NNS
did/VBD
:/:
``/``
You/PRP
should/MD
n't/RB
have/VB
bothered/VBN
./.
''/''
I/PRP
'd/MD
slept/VBD
through/IN
my/PRP$
only/JJ
previous/JJ
brush/NN
with/IN
natural/JJ
disaster/NN
,/,
a/DT
tornado/NN
15/CD
or/CC
so/RB
summers/NNS
ago/RB
near/IN
Traverse/NNP
City/NNP
,/,
Mich./NNP
,/,
so/IN
I/PRP
was/VBD
unprepared/JJ
for/IN
one/CD
reaction/NN
to/TO
such/JJ
things/NNS
:/:
the/DT
urge/NN
to/TO
talk/VB
about/IN
them/PRP
./.
Perhaps/RB
primed/VBN
by/IN
the/DT
daily/JJ
diet/NN
of/IN
radio/NN
and/CC
TV/NN
reporters/NNS
thrusting/VBG
microphones/NNS
into/IN
people/NNS
's/POS
faces/NNS
and/CC
asking/VBG
how/WRB
they/PRP
``/``
feel/VBP
''/''
about/IN
one/CD
calamity/NN
or/CC
another/DT
,/,
fellow/JJ
reporters/NNS
and/CC
civilians/NNS
who/WP
spied/VBD
my/PRP$
press/NN
credential/NN
were/VBD
eager/JJ
to/TO
chat/VB
./.
``/``
It/PRP
felt/VBD
like/IN
I/PRP
was/VBD
on/IN
a/DT
station/NN
platform/NN
and/CC
a/DT
train/NN
went/VBD
by/RP
,/,
''/''
said/VBD
one/CD
man/NN
,/,
describing/VBG
my/PRP$
own/JJ
reaction/NN
./.
A/DT
women/NNS
said/VBD
she/PRP
saw/VBD
the/DT
park/NN
's/POS
light/JJ
standards/NNS
sway/VB
./.
A/DT
man/NN
said/VBD
he/PRP
saw/VBD
the/DT
upper/JJ
rim/NN
undulate/VBP
./.
I/PRP
saw/VBD
neither/RB
./.
Dictates/NNS
of/IN
good/JJ
sense/NN
to/TO
the/DT
contrary/NN
not/RB
withstanding/VBG
,/,
the/DT
general/JJ
inclination/NN
was/VBD
to/TO
believe/VB
that/IN
the/DT
disturbance/NN
would/MD
be/VB
brief/JJ
and/CC
that/DT
ball/NN
would/MD
be/VB
played/VBN
./.
``/``
I/PRP
was/VBD
near/IN
the/DT
top/NN
of/IN
the/DT
stadium/NN
,/,
and/CC
saw/VBD
a/DT
steel/NN
girder/NN
bow/VB
six/CD
feet/NNS
from/IN
where/WRB
I/PRP
sat/VBD
,/,
but/CC
I/PRP
stayed/VBD
put/VBN
for/IN
10/CD
or/CC
15/CD
minutes/NNS
,/,
''/''
confessed/VBD
a/DT
friend/NN
./.
``/``
I/PRP
guess/VBP
I/PRP
thought/VBD
,/,
`/``
This/DT
is/VBZ
the/DT
World/NNP
Series/NNP
and/CC
I/PRP
'm/VBP
not/RB
gon/VBG
na/TO
wimp/VB
out/RP
!/.
'/''
''/''
Here/RB
in/IN
the/DT
Global/NNP
Village/NNP
,/,
though/RB
,/,
folks/NNS
do/VBP
not/RB
stay/VB
uninformed/JJ
for/IN
long/RB
./.
Electrical/JJ
power/NN
was/VBD
out/JJ
in/IN
still-daylighted/JJ
Candlestick/NNP
Park/NNP
,/,
but/CC
battery-operated/JJ
radios/NNS
and/CC
television/NN
sets/NNS
were/VBD
plentiful/JJ
./.
Within/IN
a/DT
few/JJ
minutes/NNS
,/,
the/DT
true/JJ
extent/NN
of/IN
the/DT
catastrophe/NN
was/VBD
becoming/VBG
clear/JJ
./.
Its/PRP$
Richter/NNP
Scale/NNP
measurement/NN
was/VBD
reported/VBN
as/IN
6.5/CD
,/,
then/RB
6.9/CD
,/,
then/RB
7.0/CD
./.
A/DT
section/NN
of/IN
the/DT
Bay/NNP
Bridge/NNP
had/VBD
collapsed/VBN
,/,
as/IN
had/VBD
a/DT
part/NN
of/IN
Interstate/NNP
Highway/NNP
880/CD
in/IN
Oakland/NNP
./.
People/NNS
had/VBD
died/VBN
./.
At/IN
5:40/CD
p.m./NN
,/,
scheduled/VBN
game/NN
time/NN
having/VBG
passed/VBN
,/,
some/DT
fans/NNS
chanted/VBD
``/``
Let/VB
's/POS
Play/NNP
Ball/NNP
./.
''/''
No/DT
longer/RBR
innocent/JJ
,/,
they/PRP
qualified/VBD
as/IN
fools/NNS
./.
The/DT
stadium/NN
was/VBD
ordered/VBN
evacuated/VBN
soon/RB
afterward/RB
;/:
the/DT
announcement/NN
,/,
made/VBN
over/IN
police/NN
bullhorns/NNS
,/,
cited/VBD
the/DT
power/NN
outage/NN
,/,
but/CC
it/PRP
later/RB
was/VBD
revealed/VBN
that/IN
there/EX
also/RB
had/VBD
been/VBN
damage/NN
of/IN
the/DT
sort/NN
reported/VBN
by/IN
my/PRP$
friend/NN
./.
Outside/JJ
,/,
I/PRP
spotted/VBD
two/CD
young/JJ
men/NNS
lugging/VBG
blocks/NNS
of/IN
concrete/NN
./.
``/``
Pieces/NNP
of/IN
Candlestick/NNP
,/,
''/''
they/PRP
said/VBD
./.
The/DT
crowd/NN
remained/VBD
good/JJ
natured/JJ
,/,
even/RB
bemused/JJ
./.
TV/NN
reporters/NNS
interviewed/VBD
fans/NNS
in/IN
the/DT
parking/NN
lots/NNS
while/NN
,/,
a/DT
few/JJ
feet/NNS
away/RB
,/,
others/NNS
watched/VBD
the/DT
interviews/NNS
on/IN
their/PRP$
portable/JJ
TVs/NNS
./.
The/DT
only/JJ
frenzy/NN
I/PRP
saw/VBD
was/VBD
commercial/JJ
:/:
Booths/NNS
selling/VBG
World/NNP
Series/NNP
commemorative/JJ
stamps/NNS
and/CC
dated/VBN
postmarks/NNS
were/VBD
besieged/VBN
by/IN
fledgling/NN
speculators/NNS
who/WP
saw/VBD
future/JJ
profit/NN
in/IN
the/DT
items/NNS
./.
The/DT
traffic/NN
jam/NN
out/IN
of/IN
the/DT
park/NN
was/VBD
monumental/JJ
./.
It/PRP
took/VBD
me/PRP
a/DT
half-hour/NN
to/TO
move/VB
10/CD
feet/NNS
from/IN
my/PRP$
parking/NN
spot/NN
in/IN
an/DT
outer/JJ
lot/NN
to/TO
an/DT
aisle/NN
,/,
and/CC
an/DT
additional/JJ
hour/NN
to/TO
reach/VB
an/DT
inner/JJ
roadway/NN
a/DT
half-block/NN
away/RB
./.
The/DT
six-mile/JJ
trip/NN
to/TO
my/PRP$
airport/NN
hotel/NN
that/WDT
had/VBD
taken/VBN
20/CD
minutes/NNS
earlier/RBR
in/IN
the/DT
day/NN
took/VBD
more/JJR
than/IN
three/CD
hours/NNS
./.
At/IN
my/PRP$
hotel/NN
,/,
the/DT
Westin/NNP
,/,
power/NN
was/VBD
out/JJ
,/,
some/DT
interior/JJ
plaster/NN
had/VBD
broken/VBN
loose/JJ
and/CC
there/EX
had/VBD
been/VBN
water/NN
damage/NN
,/,
but/CC
little/JJ
else/RB
./.
With/IN
Garpian/JJ
randomness/NN
,/,
a/DT
hotel/NN
across/IN
the/DT
street/NN
,/,
the/DT
Amfac/NNP
,/,
had/VBD
been/VBN
hit/VBN
harder/RBR
:/:
A/DT
large/JJ
sheet/NN
of/IN
its/PRP$
concrete/JJ
facade/NN
and/CC
several/JJ
window/NN
balconies/NNS
were/VBD
torn/VBN
away/RB
./.
The/DT
Westin/NNP
staff/NN
had/VBD
,/,
kindly/RB
,/,
set/VBN
out/RP
lighted/VBN
candles/NNS
in/IN
the/DT
ballroom/NN
,/,
prepared/VBD
a/DT
cold-cuts/NNS
buffet/NN
and/CC
passed/VBD
around/RP
pillows/NNS
and/CC
blankets/NNS
./.
I/PRP
fell/VBD
asleep/JJ
on/IN
the/DT
lobby/NN
floor/NN
,/,
next/IN
to/TO
a/DT
man/NN
wearing/VBG
a/DT
Chicago/NNP
Cubs/NNP
jacket/NN
./.
I/PRP
expected/VBD
him/PRP
to/TO
say/VB
,/,
``/``
I/PRP
told/VBD
you/PRP
so/RB
,/,
''/''
but/CC
he/PRP
already/RB
was/VBD
snoring/VBG
./.
The/DT
journalistic/JJ
consensus/NN
was/VBD
that/IN
the/DT
earthquake/NN
made/VBD
the/DT
World/NNP
Series/NNP
seem/VB
unimportant/JJ
./.
My/PRP$
response/NN
was/VBD
that/IN
sports/NNS
rarely/RB
are/VBP
important/JJ
,/,
only/RB
diverting/VBG
,/,
and/CC
the/DT
quake/NN
merely/RB
highlighted/VBD
that/DT
fact/NN
./.
Should/MD
the/DT
rest/NN
of/IN
the/DT
Series/NNP
be/VB
played/VBN
at/IN
all/DT
?/.
Sure/JJ
./.
The/DT
quake/NN
and/CC
baseball/NN
were/VBD
n't/RB
related/VBN
,/,
unlike/IN
the/DT
massacre/NN
of/IN
athletes/NNS
that/WDT
attended/VBD
the/DT
1972/CD
Olympics/NNS
./.
That/IN
heavily/RB
politicized/VBN
event/NN
learned/VBD
nothing/NN
from/IN
the/DT
horrifying/JJ
experience/NN
,/,
and/CC
seems/VBZ
doomed/VBN
to/TO
repeat/VB
it/PRP
./.
Two/CD
ironies/NNS
intrude/VBP
./.
This/DT
has/VBZ
been/VBN
widely/RB
dubbed/VBN
the/DT
BART/NNP
Series/NNP
,/,
after/IN
the/DT
local/JJ
subway/NN
line/NN
,/,
and/CC
the/DT
Bay/NNP
Bridge/NNP
Series/NNP
./.
Flags/NNS
fly/VBP
at/IN
half-staff/JJ
for/IN
the/DT
death/NN
of/IN
Bart/NNP
Giamatti/NNP
,/,
the/DT
late/JJ
baseball/NN
commissioner/NN
,/,
and/CC
now/RB
the/DT
Bay/NNP
Bridge/NNP
lies/VBZ
in/IN
ruins/NNS
./.
A/DT
Series/NNP
that/WDT
was/VBD
shaping/VBG
up/RP
as/IN
the/DT
dullest/JJS
since/IN
the/DT
one-sided/JJ
Detroit-over-San/JJ
Diego/JJ
go/NN
of/IN
1984/CD
has/VBZ
become/VBN
memorable/JJ
in/IN
the/DT
least/JJS
fortunate/JJ
way/NN
./.
Still/RB
,/,
its/PRP$
edge/NN
is/VBZ
lost/VBN
./.
It/PRP
now/RB
will/MD
be/VB
played/VBN
mostly/RB
for/IN
the/DT
record/NN
,/,
and/CC
should/MD
be/VB
wrapped/VBN
up/RP
as/RB
quickly/RB
as/IN
possible/JJ
,/,
without/IN
``/``
off/JJ
''/''
days/NNS
./.
And/CC
I/PRP
will/MD
never/RB
again/RB
complain/VB
about/IN
a/DT
rainout/NN
./.
The/DT
disarray/NN
in/IN
the/DT
junk-bond/NN
market/NN
that/WDT
began/VBD
last/JJ
month/NN
with/IN
a/DT
credit/NN
crunch/NN
at/IN
Campeau/NNP
Corp./NNP
has/VBZ
offered/VBN
commercial/JJ
banks/NNS
a/DT
golden/JJ
opportunity/NN
to/TO
play/VB
a/DT
greater/JJR
role/NN
in/IN
financing/NN
billion-dollar/JJ
takeovers/NNS
./.
But/CC
two/CD
big/JJ
New/NNP
York/NNP
banks/NNS
seem/VBP
to/TO
have/VB
kicked/VBN
those/DT
chances/NNS
away/RB
,/,
for/IN
the/DT
moment/NN
,/,
with/IN
the/DT
embarrassing/JJ
failure/NN
of/IN
Citicorp/NNP
and/CC
Chase/NNP
Manhattan/NNP
Corp./NNP
to/TO
deliver/VB
$/$
7.2/CD
billion/CD
in/IN
bank/NN
financing/VBG
for/IN
a/DT
leveraged/VBN
buy-out/NN
of/IN
United/NNP
Airlines/NNP
parent/NN
UAL/NNP
Corp/NNP
./.
For/IN
more/JJR
than/IN
a/DT
decade/NN
,/,
banks/NNS
have/VBP
been/VBN
pressing/VBG
Congress/NNP
and/CC
banking/NN
regulators/NNS
for/IN
expanded/VBN
powers/NNS
to/TO
act/VB
like/IN
securities/NNS
firms/NNS
in/IN
playing/VBG
Wall/NNP
Street/NNP
's/POS
lucrative/JJ
takeover/NN
game/NN
,/,
from/IN
giving/VBG
mergers/NNS
advice/NN
all/DT
the/DT
way/NN
to/TO
selling/VBG
and/CC
trading/VBG
high-yield/JJ
junk/NN
bonds/NNS
./.
Those/DT
expanded/VBN
powers/NNS
reached/VBD
their/PRP$
zenith/NN
in/IN
July/NNP
when/WRB
Bankers/NNP
Trust/NNP
New/NNP
York/NNP
Corp./NNP
provided/VBD
mergers/NNS
advice/NN
,/,
an/DT
equity/NN
investment/NN
and/CC
bank/NN
loans/NNS
for/IN
the/DT
$/$
3.65/CD
billion/CD
leveraged/VBN
buy-out/NN
of/IN
Northwest/NNP
Airlines/NNP
parent/NN
NWA/NNP
Inc/NNP
./.
One/CD
of/IN
the/DT
major/JJ
selling/NN
points/NNS
used/VBN
by/IN
Los/NNP
Angeles/NNP
financier/NN
Alfred/NNP
Checchi/NNP
in/IN
getting/VBG
the/DT
takeover/NN
approved/VBD
was/VBD
that/IN
the/DT
deal/NN
did/VBD
n't/RB
include/VB
any/DT
junk/NN
bonds/NNS
./.
That/DT
was/VBD
seen/VBN
as/IN
an/DT
advantage/NN
in/IN
lobbying/VBG
airline/NN
employees/NNS
and/CC
Washington/NNP
regulators/NNS
for/IN
approval/NN
of/IN
the/DT
contested/VBN
takeover/NN
./.
All/DT
$/$
3.35/CD
billion/CD
in/IN
debt/NN
for/IN
the/DT
deal/NN
was/VBD
supplied/VBN
by/IN
banks/NNS
./.
Charles/NNP
Nathan/NNP
,/,
co-head/NN
of/IN
mergers/NNS
and/CC
acquisitions/NNS
at/IN
Salomon/NNP
Brothers/NNP
Inc./NNP
,/,
says/VBZ
it/PRP
is/VBZ
natural/JJ
for/IN
banks/NNS
to/TO
try/VB
to/TO
expand/VB
beyond/IN
their/PRP$
bread-and-butter/JJ
business/NN
of/IN
providing/VBG
senior/JJ
debt/NN
for/IN
buy-outs/NNS
./.
But/CC
the/DT
UAL/NNP
collapse/NN
,/,
he/PRP
says/VBZ
,/,
``/``
may/MD
tell/VB
you/PRP
it/PRP
's/VBZ
not/RB
going/VBG
to/TO
work/VB
that/RB
easily/RB
./.
''/''
David/NNP
Batchelder/NNP
,/,
a/DT
mergers/NNS
adviser/NN
in/IN
La/NNP
Jolla/NNP
,/,
Calif./NNP
,/,
who/WP
aided/VBD
Los/NNP
Angeles/NNP
investor/NN
Marvin/NNP
Davis/NNP
on/IN
the/DT
bids/NNS
which/WDT
put/VBP
both/DT
UAL/NNP
and/CC
NWA/NNP
in/IN
play/NN
as/IN
takeover/NN
candidates/NNS
this/DT
year/NN
,/,
says/VBZ
that/IN
banks/NNS
have/VBP
been/VBN
``/``
preparing/VBG
to/TO
play/VB
a/DT
larger/JJR
and/CC
larger/JJR
role/NN
in/IN
acquisition/NN
financing/NN
./.
''/''
Mr./NNP
Batchelder/NNP
says/VBZ
that/IN
in/IN
the/DT
past/NN
,/,
banks/NNS
would/MD
normally/RB
have/VB
loaned/VBN
65/CD
%/NN
of/IN
a/DT
total/JJ
buy-out/NN
price/NN
,/,
with/IN
the/DT
loans/NNS
secured/VBN
by/IN
the/DT
target/NN
company/NN
's/POS
assets/NNS
./.
Another/DT
20/CD
%/NN
of/IN
the/DT
borrowed/VBN
funds/NNS
would/MD
come/VB
from/IN
the/DT
sale/NN
to/TO
investors/NNS
of/IN
junk/NN
bonds/NNS
,/,
which/WDT
offer/VBP
less/JJR
security/NN
and/CC
typically/RB
carry/VBP
higher/JJR
yields/NNS
than/IN
bank/NN
loans/NNS
./.
Mr./NNP
Checchi/NNP
's/POS
purchase/NN
of/IN
NWA/NNP
,/,
Mr./NNP
Batchelder/NNP
notes/VBZ
,/,
``/``
was/VBD
probably/RB
the/DT
most/RBS
aggressive/JJ
to/TO
date/VB
,/,
''/''
with/IN
bank/NN
debt/NN
at/IN
85/CD
%/NN
of/IN
the/DT
purchase/NN
price/NN
./.
But/CC
Mr./NNP
Batchelder/NNP
says/VBZ
that/IN
Citicorp/NNP
's/POS
``/``
failure/NN
to/TO
deliver/VB
''/''
on/IN
its/PRP$
promise/NN
to/TO
raise/VB
the/DT
UAL/NNP
bank/NN
debt/NN
for/IN
a/DT
labor-management/JJ
buy-out/NN
group/NN
``/``
is/VBZ
very/RB
distressing/JJ
to/TO
potential/JJ
users/NNS
of/IN
a/DT
`/``
highly-confident/JJ
'/''
letter/NN
from/IN
commercial/JJ
banks/NNS
./.
''/''
His/PRP$
client/NN
,/,
Mr./NNP
Davis/NNP
,/,
used/VBD
just/RB
such/JJ
a/DT
letter/NN
from/IN
Citicorp/NNP
in/IN
pursuing/VBG
UAL/NNP
;/:
Citicorp/NNP
later/RBR
agreed/VBD
to/TO
work/VB
with/IN
a/DT
competing/VBG
UAL/NNP
buy-out/NN
group/NN
./.
Executives/NNS
of/IN
Citicorp/NNP
and/CC
Chase/NNP
Manhattan/NNP
declined/VBD
to/TO
comment/VB
on/IN
either/CC
the/DT
UAL/NNP
situation/NN
,/,
or/CC
on/IN
the/DT
changing/VBG
nature/NN
of/IN
banks/NNS
'/POS
role/NN
in/IN
financing/VBG
takeovers/NNS
./.
In/IN
the/DT
wake/NN
of/IN
Campeau/NNP
's/POS
problems/NNS
,/,
prices/NNS
of/IN
junk/NN
bonds/NNS
tumbled/VBD
,/,
throwing/VBG
into/IN
doubt/NN
the/DT
ability/NN
of/IN
corporate/JJ
acquirers/NNS
to/TO
finance/VB
large/JJ
takeovers/NNS
with/IN
the/DT
help/NN
of/IN
junk/NN
bond/NN
sales/NNS
./.
Mark/NNP
Solow/NNP
,/,
senior/JJ
managing/VBG
director/NN
at/IN
Manufacturers/NNP
Hanover/NNP
Trust/NNP
Co./NNP
,/,
says/VBZ
the/DT
falloff/NN
in/IN
junk/NN
bonds/NNS
may/MD
yet/RB
open/VB
new/JJ
business/NN
opportunities/NNS
to/TO
banks/NNS
in/IN
structuring/NN
takeovers/NNS
./.
But/CC
he/PRP
warns/VBZ
that/IN
banks/NNS
will/MD
have/VB
``/``
to/TO
have/VB
enough/JJ
discipline/NN
''/''
not/RB
to/TO
make/VB
loans/NNS
that/WDT
are/VBP
too/RB
risky/JJ
./.
In/IN
fact/NN
,/,
Manufacturers/NNP
Hanover/NNP
said/VBD
in/IN
its/PRP$
third-quarter/JJ
earnings/NNS
report/NN
that/IN
fees/NNS
from/IN
syndicating/VBG
loans/NNS
to/TO
other/JJ
banks/NNS
dropped/VBD
48/CD
%/NN
,/,
to/TO
$/$
21/CD
million/CD
./.
``/``
We/PRP
did/VBD
n't/RB
take/VB
part/NN
in/IN
a/DT
lot/NN
of/IN
deals/NNS
because/IN
their/PRP$
credit/NN
quality/NN
was/VBD
poor/JJ
,/,
''/''
says/VBZ
a/DT
bank/NN
spokesman/NN
./.
James/NNP
B./NNP
Lee/NNP
,/,
head/NN
of/IN
syndications/NNS
and/CC
private/JJ
placements/NNS
at/IN
Chemical/NNP
Banking/NNP
Corp./NNP
,/,
said/VBD
he/PRP
believes/VBZ
banks/NNS
can/MD
still/RB
make/VB
a/DT
credible/JJ
offer/NN
of/IN
one-stop/JJ
shopping/NN
for/IN
takeover/NN
finance/NN
./.
As/IN
evidence/NN
,/,
he/PRP
cites/VBZ
yesterday/NN
's/POS
arrangement/NN
for/IN
the/DT
final/JJ
financing/NN
of/IN
a/DT
$/$
3/CD
billion/CD
bid/NN
for/IN
American/NNP
Medical/NNP
International/NNP
Inc./NNP
in/IN
which/WDT
Chemical/NNP
served/VBD
as/IN
both/DT
the/DT
lead/NN
bank/NN
and/CC
an/DT
equity/NN
investor/NN
./.
Beyond/IN
the/DT
current/JJ
weakness/NN
in/IN
the/DT
junk/NN
bond/NN
market/NN
,/,
banks/NNS
have/VBP
another/DT
advantage/NN
over/IN
investment/NN
banks/NNS
in/IN
financing/VBG
contested/VBN
takeovers/NNS
./.
Arthur/NNP
Fleischer/NNP
Jr./NNP
,/,
a/DT
takeover/NN
lawyer/NN
at/IN
Fried/NNP
Frank/NNP
Harris/NNP
Shriver/NNP
&/CC
Jacobson/NNP
,/,
notes/VBZ
that/IN
``/``
a/DT
political/JJ
and/CC
emotional/JJ
bias/NN
''/''
has/VBZ
developed/VBN
against/IN
junk/NN
bonds/NNS
./.
One/CD
hostile/JJ
bidder/NN
who/WP
deliberately/RB
avoided/VBD
using/VBG
junk/NN
bonds/NNS
was/VBD
Paramount/NNP
Communications/NNP
Inc./NNP
in/IN
its/PRP$
initial/JJ
offer/NN
to/TO
acquire/VB
Time/NNP
Inc./NNP
for/IN
$/$
10.7/CD
billion/CD
,/,
or/CC
$/$
175/CD
a/DT
share/NN
./.
A/DT
Paramount/NNP
spokesman/NN
says/VBZ
that/DT
decision/NN
was/VBD
based/VBN
on/IN
the/DT
financial/JJ
,/,
not/RB
political/JJ
,/,
drawbacks/NNS
of/IN
junk/NN
bonds/NNS
./.
But/CC
some/DT
observers/NNS
believe/VBP
Paramount/NNP
Chairman/NNP
Martin/NNP
Davis/NNP
wanted/VBD
to/TO
avoid/VB
the/DT
possible/JJ
taint/NN
of/IN
being/VBG
perceived/VBN
as/IN
a/DT
corporate/JJ
raider/NN
in/IN
his/PRP$
controversial/JJ
bid/NN
for/IN
Time/NNP
./.
In/IN
the/DT
end/NN
,/,
Mr./NNP
Davis/NNP
used/VBD
junk/NN
bonds/NNS
so/RB
that/IN
he/PRP
could/MD
raise/VB
Paramount/NNP
's/POS
bid/NN
to/TO
$/$
200/CD
a/DT
share/NN
./.
Some/DT
Monday-morning/JJ
quarterbacks/NNS
said/VBD
the/DT
initial/JJ
lower/JJR
bid/NN
,/,
without/IN
junk/NN
bonds/NNS
,/,
was/VBD
a/DT
factor/NN
in/IN
his/PRP$
losing/VBG
the/DT
company/NN
./.
Time/NNP
eluded/VBD
Paramount/NNP
by/IN
acquiring/VBG
Warner/NNP
Communications/NNP
Inc/NNP
./.
The/DT
success/NN
of/IN
the/DT
NWA/NNP
financing/NN
,/,
and/CC
the/DT
failure/NN
of/IN
the/DT
UAL/NNP
deal/NN
,/,
also/RB
seem/VBP
to/TO
highlight/VB
the/DT
important/JJ
new/JJ
role/NN
in/IN
takeover/NN
financing/NN
being/VBG
played/VBD
by/IN
Japanese/JJ
banks/NNS
./.
Japanese/JJ
banks/NNS
accounted/VBD
for/IN
50/CD
%/NN
of/IN
the/DT
NWA/NNP
bank/NN
debt/NN
,/,
according/VBG
to/TO
a/DT
report/NN
by/IN
Transportation/NNP
Secretary/NNP
Samuel/NNP
Skinner/NNP
./.
But/CC
it/PRP
was/VBD
broad-scale/JJ
rejection/NN
by/IN
Japanese/JJ
banks/NNS
that/WDT
helped/VBD
seal/VB
the/DT
fate/NN
of/IN
the/DT
attempt/NN
to/TO
buy/VB
UAL/NNP
./.
Citicorp/NNP
and/CC
Chase/NNP
are/VBP
attempting/VBG
to/TO
put/VB
together/RB
a/DT
new/JJ
,/,
lower/JJR
bid/NN
./.
Takanori/NNP
Mizuno/NNP
,/,
chief/JJ
economist/NN
of/IN
the/DT
Institute/NNP
for/IN
Financial/NNP
Affairs/NNP
Inc./NNP
,/,
a/DT
Tokyo/NNP
research/NN
center/NN
on/IN
finance/NN
and/CC
economics/NNS
,/,
says/VBZ
,/,
``/``
The/DT
junk/NN
bond/NN
market/NN
became/VBD
very/RB
jittery/JJ
,/,
and/CC
there/EX
's/VBZ
a/DT
fear/NN
of/IN
a/DT
coming/JJ
recession/NN
and/CC
the/DT
possible/JJ
bankruptcy/NN
of/IN
LBO/NNP
companies/NNS
./.
These/DT
factors/NNS
have/VBP
combined/VBN
to/TO
deter/VB
LBO/NNP
lending/NN
by/IN
Japanese/JJ
banks/NNS
./.
''/''
provided/VBN
solely/RB
by/IN
banks/NNS
,/,
not/RB
high-yield/JJ
junk/NN
bonds/NNS
Harley-Davidson/NNP
Inc./NNP
filed/VBD
suit/NN
in/IN
federal/JJ
court/NN
here/RB
,/,
alleging/VBG
that/IN
a/DT
group/NN
that/WDT
holds/VBZ
6.2/CD
%/NN
of/IN
its/PRP$
stock/NN
made/VBN
``/``
false/JJ
,/,
deceptive/JJ
and/CC
misleading/JJ
''/''
statements/NNS
in/IN
recent/JJ
regulatory/JJ
filings/NNS
and/CC
public/JJ
announcements/NNS
./.
Harley-Davidson/NNP
's/POS
complaint/NN
claims/VBZ
that/IN
the/DT
group/NN
,/,
led/VBN
by/IN
investor/NN
Malcolm/NNP
I./NNP
Glazer/NNP
,/,
violated/VBD
securities/NNS
laws/NNS
by/IN
failing/VBG
to/TO
disclose/VB
plans/NNS
to/TO
purchase/VB
15/CD
%/NN
of/IN
the/DT
company/NN
's/POS
shares/NNS
outstanding/JJ
and/CC
that/IN
when/WRB
the/DT
required/VBN
Hart-Scott-Rodino/JJ
filing/NN
eventually/RB
was/VBD
made/VBN
,/,
it/PRP
did/VBD
n't/RB
disclose/VB
the/DT
group/NN
's/POS
alleged/JJ
earlier/JJR
violation/NN
of/IN
the/DT
so-called/JJ
prior-notice/JJ
requirements/NNS
of/IN
the/DT
law/NN
./.
Mr./NNP
Glazer/NNP
could/MD
n't/RB
immediately/RB
be/VB
reached/VBN
to/TO
comment/VB
./.
But/CC
when/WRB
Harley/NNP
last/JJ
week/NN
publicly/RB
questioned/VBD
the/DT
legality/NN
of/IN
the/DT
group/NN
's/POS
filing/NN
procedures/NNS
,/,
the/DT
Rochester/NNP
,/,
N.Y./NNP
,/,
investor/NN
said/VBD
``/``
we/PRP
complied/VBD
with/IN
every/DT
law/NN
,/,
''/''
and/CC
he/PRP
denied/VBD
any/DT
wrongdoing/NN
./.
The/DT
Glazer/NNP
group/NN
said/VBD
in/IN
a/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
filing/NN
in/IN
early/JJ
October/NNP
that/IN
it/PRP
may/MD
seek/VB
a/DT
controlling/NN
interest/NN
in/IN
Harley-Davidson/NNP
,/,
or/CC
seek/VB
representation/NN
on/IN
the/DT
company/NN
's/POS
board/NN
./.
Harley/NNP
has/VBZ
said/VBD
it/PRP
does/VBZ
n't/RB
intend/VB
to/TO
be/VB
acquired/VBN
by/IN
the/DT
Glazer/NNP
group/NN
or/CC
any/DT
other/JJ
party/NN
./.
Inland/NNP
Steel/NNP
Industries/NNP
Inc./NNP
,/,
battered/VBN
by/IN
lower/JJR
volume/NN
and/CC
higher/JJR
costs/NNS
,/,
posted/VBD
a/DT
75/CD
%/NN
drop/NN
in/IN
third-quarter/JJ
earnings/NNS
./.
The/DT
nation/NN
's/POS
fourth-largest/JJ
steelmaker/NN
earned/VBD
$/$
18.3/CD
million/CD
,/,
or/CC
43/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
$/$
61/CD
million/CD
,/,
or/CC
$/$
1.70/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
,/,
when/WRB
the/DT
industry/NN
was/VBD
enjoying/VBG
peak/JJ
demand/NN
and/CC
strong/JJ
pricing/NN
./.
Sales/NNS
fell/VBD
to/TO
$/$
981.2/CD
million/CD
from/IN
$/$
1.02/CD
billion/CD
./.
The/DT
earnings/NNS
also/RB
mark/VBP
a/DT
significant/JJ
drop/NN
from/IN
the/DT
second/JJ
quarter/NN
's/POS
$/$
45.3/CD
million/CD
or/CC
$/$
1.25/CD
a/DT
share/NN
./.
Moreover/RB
,/,
the/DT
earnings/NNS
were/VBD
well/RB
below/IN
analysts/NNS
'/POS
expectations/NNS
of/IN
about/RB
$/$
1.16/CD
a/DT
share/NN
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Inland/NNP
closed/VBD
yesterday/NN
at/IN
$/$
35.875/CD
a/DT
share/NN
,/,
down/RB
$/$
1/CD
./.
The/DT
company/NN
attributed/VBD
the/DT
earnings/NNS
drop/NN
to/TO
lower/JJR
volume/NN
related/VBN
to/TO
seasonal/JJ
demand/NN
and/CC
the/DT
soft/JJ
consumer/NN
durable/JJ
market/NN
,/,
especially/RB
in/IN
the/DT
automotive/JJ
sector/NN
./.
However/RB
,/,
the/DT
company/NN
also/RB
lost/VBN
orders/NNS
because/IN
of/IN
prolonged/VBN
labor/NN
talks/NNS
in/IN
the/DT
second/JJ
quarter/NN
./.
Third-quarter/JJ
shipments/NNS
slipped/VBD
7/CD
%/NN
from/IN
the/DT
year-ago/JJ
period/NN
,/,
and/CC
17/CD
%/NN
from/IN
this/DT
year/NN
's/POS
second/JJ
quarter/NN
./.
Profit/NN
of/IN
steel/NN
shipped/VBN
for/IN
the/DT
company/NN
's/POS
steel/NN
segment/NN
slid/VBD
to/TO
$/$
26/CD
a/DT
ton/NN
,/,
from/IN
$/$
66/CD
a/DT
ton/NN
a/DT
year/NN
earlier/RBR
and/CC
$/$
57/CD
a/DT
ton/NN
a/DT
quarter/NN
earlier/RBR
./.
Analysts/NNS
noted/VBD
that/IN
the/DT
disappointing/JJ
results/NNS
do/VBP
n't/RB
reflect/VB
lower/JJR
prices/NNS
for/IN
steel/NN
products/NNS
./.
Charles/NNP
Bradford/NNP
,/,
an/DT
analyst/NN
with/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
,/,
said/VBD
higher/JJR
prices/NNS
for/IN
galvanized/JJ
and/CC
cold-rolled/JJ
products/NNS
offset/VBD
lower/JJR

prices/NNS
for/IN
bar/NN
,/,
hot-rolled/JJ
and/CC
structural/JJ
steel/NN
./.
Structural/JJ
steel/NN
,/,
which/WDT
primarily/RB
serves/VBZ
the/DT
construction/NN
market/NN
,/,
was/VBD
especially/RB
hurt/VBN
by/IN
a/DT
15/CD
%/NN
price/NN
drop/NN
,/,
Mr./NNP
Bradford/NNP
said/VBD
./.
The/DT
company/NN
said/VBD
its/PRP$
integrated/VBN
steel/NN
sector/NN
was/VBD
also/RB
hurt/VBN
by/IN
higher/JJR
raw/JJ
material/NN
,/,
repair/NN
and/CC
maintenance/NN
,/,
and/CC
labor/NN
costs/NNS
./.
The/DT
increased/VBN
labor/NN
costs/NNS
became/VBD
effective/JJ
Aug./NNP
1/CD
under/IN
terms/NNS
of/IN
the/DT
four-year/JJ
labor/NN
agreement/NN
with/IN
the/DT
United/NNP
Steelworkers/NNP
union/NN
./.
Meanwhile/RB
,/,
the/DT
company/NN
's/POS
service/NN
center/NN
segment/NN
,/,
which/WDT
saw/VBD
operating/NN
profit/NN
drop/VB
to/TO
$/$
11.5/CD
million/CD
from/IN
$/$
30.7/CD
million/CD
a/DT
year/NN
ago/RB
,/,
experienced/VBD
much/JJ
of/IN
the/DT
same/JJ
demand/NN
and/CC
cost/NN
problems/NNS
,/,
as/RB
well/RB
as/IN
start-up/NN
costs/NNS
associated/VBN
with/IN
a/DT
coil/NN
processing/NN
facility/NN
in/IN
Chicago/NNP
and/CC
an/DT
upgraded/VBN
computer/NN
information/NN
system/NN
./.
Inland/NNP
Chairman/NNP
Frank/NNP
W./NNP
Luerssen/NNP
said/VBD
the/DT
company/NN
's/POS
short-term/JJ
outlook/NN
is/VBZ
``/``
clouded/VBN
by/IN
uncertainties/NNS
in/IN
the/DT
economy/NN
and/CC
financial/JJ
markets/NNS
./.
''/''
However/RB
,/,
he/PRP
noted/VBD
that/IN
steel/NN
mill/NN
bookings/NNS
are/VBP
up/RB
from/IN
early/JJ
summer/NN
levels/NNS
,/,
and/CC
that/IN
he/PRP
expects/VBZ
the/DT
company/NN
to/TO
improve/VB
its/PRP$
cost/NN
performance/NN
in/IN
the/DT
fourth/JJ
quarter/NN
./.
In/IN
the/DT
first/JJ
nine/CD
months/NNS
,/,
profit/NN
was/VBD
$/$
113/CD
million/CD
,/,
or/CC
$/$
3.04/CD
a/DT
share/NN
,/,
on/IN
sales/NNS
of/IN
$/$
3.19/CD
billion/CD
,/,
compared/VBN
with/IN
$/$
204.5/CD
million/CD
,/,
or/CC
$/$
5.76/CD
a/DT
share/NN
,/,
on/IN
sales/NNS
of/IN
$/$
3.03/CD
billion/CD
,/,
a/DT
year/NN
earlier/RBR
./.
The/DT
``/``
seismic/JJ
''/''
activity/NN
of/IN
a/DT
financial/JJ
market/NN
bears/VBZ
a/DT
resemblance/NN
to/TO
the/DT
seismic/JJ
activity/NN
of/IN
the/DT
earth/NN
./.
When/WRB
things/NNS
are/VBP
quiet/JJ
(/(
low/JJ
volatility/NN
the/DT
structures/NNS
on/IN
which/WDT
markets/NNS
stand/VBP
can/MD
be/VB
relatively/RB
inefficient/JJ
and/CC
still/RB
perform/VB
their/PRP$
functions/NNS
adequately/RB
./.
However/RB
,/,
when/WRB
powerful/JJ
forces/NNS
start/VBP
shaking/VBG
the/DT
market/NN
's/POS
structure/NN
,/,
the/DT
more/RBR
``/``
earthquake-resistant/JJ
''/''
it/PRP
is/VBZ
,/,
the/DT
better/JJR
its/PRP$
chance/NN
for/IN
survival/NN
./.
America/NNP
's/POS
financial/JJ
markets/NNS
do/VBP
not/RB
yet/RB
have/VB
all/DT
the/DT
required/VBN
modern/NN
features/NNS
required/VBN
to/TO
make/VB
them/PRP
fully/RB
``/``
aftershock-resistant/JJ
./.
''/''
Investors/NNS
lack/VBP
equal/JJ
access/NN
to/TO
the/DT
markets/NNS
'/POS
trading/NN
arena/NN
and/CC
its/PRP$
information/NN
./.
That/DT
structural/JJ
lack/NN
is/VBZ
crucial/JJ
because/IN
investors/NNS
are/VBP
the/DT
only/JJ
source/NN
of/IN
market/NN
liquidity/NN
./.
And/CC
liquidity/NN
is/VBZ
what/WP
markets/NNS
need/VBP
to/TO
damp/VB
quakes/NNS
and/CC
aftershocks/NNS
./.
In/IN
today/NN
's/POS
markets/NNS
,/,
specialists/NNS
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
upstairs/NN
''/''
market/NN
makers/NNS
the/DT
over-the-counter/JJ
market/NN
the/DT
only/JJ
market/NN
participants/NNS
allowed/VBN
to/TO
play/VB
a/DT
direct/JJ
role/NN
in/IN
the/DT
price-determination/JJ
process/NN
./.
When/WRB
they/PRP
halt/VBP
trading/NN
,/,
all/DT
market/NN
liquidity/NN
is/VBZ
gone/VBN
./.
And/CC
when/WRB
any/DT
component/NN
of/IN
the/DT
market/NN
--/:
cash/NN
,/,
futures/NNS
or/CC
options/NNS
--/:
loses/VBZ
liquidity/NN
,/,
the/DT
price/NN
discovery/NN
system/NN
the/DT
way/NN
prices/NNS
are/VBP
determined/VBN
)/)
becomes/VBZ
flawed/JJ
or/CC
is/VBZ
lost/VBN
entirely/RB
for/IN
a/DT
time/NN
./.
Last/JJ
Friday/NNP
the/DT
13th/JJ
two/CD
years/NNS
ago/RB
this/DT
week/NN
the/DT
markets/NNS
became/VBD
unlinked/JJ
./.
When/WRB
that/DT
happened/VBD
,/,
``/``
seismic/JJ
''/''
tremors/NNS
of/IN
fear/NN
--/:
much/RB
like/IN
the/DT
shock/NN
waves/NNS
created/VBN
by/IN
an/DT
earthquake/NN
--/:
coursed/VBN
through/IN
the/DT
market/NN
and/CC
increased/VBD
the/DT
market/NN
's/POS
volatility/NN
./.
Lack/NN
of/IN
important/JJ
,/,
needed/VBN
information/NN
can/MD
cause/VB
fear/NN
./.
Fear/NN
is/VBZ
the/DT
father/NN
of/IN
panic/NN
./.
Panic/NN
frequently/RB
results/VBZ
in/IN
irrational/JJ
behavior/NN
./.
And/CC
in/IN
financial/JJ
markets/NNS
,/,
irrational/JJ
behavior/NN
is/VBZ
sometimes/RB
translated/VBN
into/IN
catastrophe/NN
./.
When/WRB
market/NN
tremors/NNS
start/VBP
,/,
it/PRP
is/VBZ
crucial/JJ
that/IN
as/IN
much/JJ
information/NN
about/IN
transaction/NN
prices/NNS
and/CC
the/DT
supply-demand/JJ
curve/NN
orders/NNS
at/IN
various/JJ
prices/NNS
)/)
be/VB
made/VBN
available/JJ
to/TO
all/DT
,/,
not/RB
just/RB
to/TO
market/NN
makers/NNS
./.
Because/IN
of/IN
a/DT
lack/NN
of/IN
information/NN
and/CC
access/NN
,/,
many/JJ
investors/NNS
--/:
including/VBG
the/DT
very/JJ
ones/NNS
whose/WP$
buying/NN
power/NN
could/MD
restore/VB
stability/NN
and/CC
damp/VB
volatility/NN
--/:
are/VBP
forced/VBN
to/TO
stand/VB
on/IN
the/DT
sidelines/NNS
when/WRB
they/PRP
are/VBP
most/RBS
needed/VBN
,/,
because/IN
of/IN
their/PRP$
ignorance/NN
of/IN
important/JJ
market/NN
information/NN
./.
To/TO
add/VB
aftershock-damping/JJ
power/NN
to/TO
America/NNP
's/POS
markets/NNS
,/,
a/DT
modern/JJ
,/,
electronic/JJ
trading/NN
system/NN
should/MD
be/VB
implemented/VBN
that/DT
permits/VBZ
equal/JJ
access/NN
to/TO
the/DT
trading/NN
arena/NN
the/DT
information/NN
that/WDT
would/MD
automatically/RB
accompany/VB
such/JJ
access/NN
investors/NNS
--/:
particularly/RB
institutional/JJ
investors/NNS
./.
Contrary/JJ
to/TO
some/DT
opinions/NNS
,/,
the/DT
trading/NN
activities/NNS
of/IN
specialists/NNS
and/CC
other/JJ
market/NN
makers/NNS
do/VBP
not/RB
provide/VB
liquidity/NN
to/TO
the/DT
market/NN
as/IN
a/DT
whole/NN
./.
What/WP
market/NN
makers/NNS
provide/VBP
is/VBZ
immediacy/NN
,/,
a/DT
very/RB
valuable/JJ
service/NN
./.
Liquidity/NN
is/VBZ
not/RB
a/DT
service/NN
./.
It/PRP
is/VBZ
a/DT
market/NN
attribute/NN
--/:
the/DT
ability/NN
to/TO
absorb/VB
selling/NN
orders/NNS
without/IN
causing/VBG
significant/JJ
price/NN
changes/NNS
in/IN
the/DT
absence/NN
of/IN
news/NN
./.
Market/NN
makers/NNS
buy/VBP
what/WP
investors/NNS
wish/VBP
to/TO
sell/VB
;/:
their/PRP$
business/NN
is/VBZ
reselling/VBG
these/DT
unwanted/JJ
positions/NNS
as/RB
quickly/RB
as/IN
possible/JJ
to/TO
other/JJ
investors/NNS
,/,
and/CC
at/IN
a/DT
profit/NN
./.
As/IN
a/DT
result/NN
,/,
while/IN
any/DT
one/CD
customer/NN
may/MD
purchase/VB
immediacy/NN
by/IN
selling/VBG
to/TO
a/DT
market/NN
maker/NN
which/WDT
is/VBZ
micro-liquidity/NN
for/IN
the/DT
investor/NN
the/DT
market/NN
as/IN
a/DT
whole/NN
remains/VBZ
in/IN
the/DT
same/JJ
circumstances/NNS
it/PRP
was/VBD
before/IN
the/DT
transaction/NN
:/:
The/DT
unwanted/JJ
position/NN
is/VBZ
still/RB
an/DT
unwanted/JJ
position/NN
;/:
only/RB
the/DT
identity/NN
of/IN
the/DT
seller/NN
has/VBZ
changed/VBN
./.
In/IN
fact/NN
it/PRP
can/MD
be/VB
argued/VBN
that/IN
increasing/VBG
capital/NN
commitments/NNS
by/IN
market/NN
makers/NNS
a/DT
result/NN
of/IN
some/DT
post-1987/JJ
crash/JJ
studies/NNS
market/NN
volatility/NN
,/,
since/IN
the/DT
more/JJR
securities/NNS
are/VBP
held/VBN
by/IN
market/NN
makers/NNS
at/IN
any/DT
given/VBN
time/NN
,/,
the/DT
more/JJR
selling/NN
pressure/NN
is/VBZ
overhanging/VBG
the/DT
market/NN
./.
In/IN
an/DT
open/JJ
electronic/JJ
system/NN
,/,
any/DT
investor/NN
wishing/VBG
to/TO
pay/VB
for/IN
real-time/JJ
access/NN
to/TO
the/DT
trading/NN
arena/NN
through/IN
a/DT
registered/VBN
broker-dealer/NN
would/MD
be/VB
able/JJ
to/TO
see/VB
the/DT
entire/JJ
supply-demand/JJ
curve/NN
orders/NNS
at/IN
each/DT
price/NN
dealers/NNS
and/CC
investors/NNS
alike/RB
,/,
and/CC
to/TO
enter/VB
and/CC
execute/VB
orders/NNS
./.
Current/JJ
quotations/NNS
would/MD
reflect/VB
the/DT
combined/VBN
financial/JJ
judgment/NN
of/IN
all/DT
market/NN
participants/NNS
--/:
not/RB
just/RB
those/DT
of/IN
intermediaries/NNS
who/WP
become/VBP
extremely/RB
risk-averse/JJ
during/IN
times/NNS
of/IN
crisis/NN
./.
Investors/NNS
and/CC
professionals/NNS
alike/RB
would/MD
compete/VB
on/IN
the/DT
level/NN
playing/NN
field/NN
Congress/NNP
sought/VBD
and/CC
called/VBD
a/DT
``/``
national/JJ
market/NN
system/NN
''/''
(/(
not/RB
yet/RB
achieved/VBN
)/)
almost/RB
15/CD
years/NNS
ago/RB
when/WRB
it/PRP
passed/VBD
the/DT
Securities/NNP
Reform/NNP
Act/NNP
of/IN
1975/CD
./.
Last/JJ
Friday/NNP
's/POS
market/NN
gyrations/NNS
did/VBD
not/RB
result/VB
in/IN
severe/JJ
``/``
aftershocks/NNS
./.
''/''
Were/VBD
we/PRP
smart/JJ
or/CC
just/RB
lucky/JJ
?/.
I/PRP
'm/VBP
not/RB
certain/JJ
./.
But/CC
I/PRP
am/VBP
sure/JJ
we/PRP
need/VBP
to/TO
maximize/VB
our/PRP$
``/``
earthquake/NN
''/''
protection/NN
by/IN
making/VBG
certain/JJ
that/IN
our/PRP$
market/NN
structures/NNS
let/VBP
investors/NNS
add/VB
their/PRP$
mighty/JJ
shock-damping/JJ
power/NN
to/TO
our/PRP$
nation/NN
's/POS
markets/NNS
./.
Mr./NNP
Peake/NNP
is/VBZ
chairman/NN
of/IN
his/PRP$
own/JJ
consulting/NN
company/NN
in/IN
Englewood/NNP
,/,
N.J/NNP
./.
NOW/RB
YOU/PRP
SEE/VBP
IT/PRP
,/,
now/RB
you/PRP
do/VBP
n't/RB
./.
The/DT
recession/NN
,/,
that/DT
is/VBZ
./.
The/DT
economy/NN
's/POS
stutter/NN
steps/NNS
leave/VBP
investors/NNS
wondering/VBG
whether/CC
things/NNS
are/VBP
slowing/VBG
down/RP
or/CC
speeding/VBG
up/RP
./.
So/RB
often/RB
are/VBP
government/NN
statistics/NNS
revised/VBD
that/IN
they/PRP
seem/VBP
to/TO
resemble/VB
a/DT
spinning/JJ
weather/NN
vane/NN
./.
For/IN
the/DT
past/JJ
seven/CD
years/NNS
,/,
investors/NNS
have/VBP
had/VBD
the/DT
wind/NN
at/IN
their/PRP$
backs/NNS
,/,
in/IN
the/DT
form/NN
of/IN
a/DT
generally/RB
growing/VBG
economy/NN
./.
Some/DT
may/MD
have/VB
forgotten/VBN
--/:
and/CC
some/DT
younger/JJR
ones/NNS
may/MD
never/RB
have/VB
experienced/VBN
--/:
what/WP
it/PRP
's/VBZ
like/JJ
to/TO
invest/VB
during/IN
a/DT
recession/NN
./.
Different/JJ
tactics/NNS
are/VBP
called/VBN
for/IN
,/,
as/IN
losing/VBG
money/NN
becomes/VBZ
easier/JJR
and/CC
making/VBG
money/NN
becomes/VBZ
tougher/JJR
./.
For/IN
those/DT
investors/NNS
who/WP
believe/VBP
--/:
or/CC
fear/VBP
--/:
that/DT
1990/CD
will/MD
be/VB
a/DT
recession/NN
year/NN
,/,
many/JJ
economists/NNS
and/CC
money/NN
managers/NNS
agree/VBP
on/IN
steps/NNS
that/WDT
can/MD
be/VB
taken/VBN
to/TO
lower/VB
the/DT
risks/NNS
in/IN
a/DT
portfolio/NN
./.
In/IN
a/DT
nutshell/NN
,/,
pros/NNS
advise/VBP
investors/NNS
who/WP
expect/VBP
a/DT
slowdown/NN
to/TO
hold/VB
fewer/JJR
stocks/NNS
than/IN
usual/JJ
and/CC
to/TO
favor/VB
shares/NNS
of/IN
big/JJ
companies/NNS
in/IN
``/``
defensive/JJ
''/''
industries/NNS
./.
A/DT
heavy/JJ
dose/NN
of/IN
cash/NN
is/VBZ
prescribed/VBN
,/,
along/IN
with/IN
a/DT
heavier-than-usual/JJ
allotment/NN
to/TO
bonds/NNS
--/:
preferably/RB
government/NN
bonds/NNS
./.
It/PRP
's/VBZ
tempting/JJ
to/TO
think/VB
these/DT
defensive/JJ
steps/NNS
can/MD
be/VB
delayed/VBN
until/IN
a/DT
recession/NN
is/VBZ
clearly/RB
at/IN
hand/NN
./.
But/CC
that/DT
may/MD
not/RB
be/VB
possible/JJ
,/,
because/IN
recessions/NNS
often/RB
take/VBP
investors/NNS
by/IN
surprise/NN
./.
``/``
They/PRP
always/RB
seem/VBP
to/TO
come/VB
a/DT
bit/NN
later/RBR
than/IN
you/PRP
expect/VBP
./.
When/WRB
they/PRP
do/VBP
hit/VB
,/,
they/PRP
hit/VBP
fast/RB
,/,
''/''
says/VBZ
David/NNP
A./NNP
Wyss/NNP
,/,
chief/JJ
financial/JJ
economist/NN
at/IN
the/DT
Data/NNP
Resources/NNP
division/NN
of/IN
McGraw-Hill/NNP
Inc/NNP
./.
Though/IN
he/PRP
himself/PRP
does/VBZ
n't/RB
expect/VB
a/DT
recession/NN
soon/RB
,/,
Mr./NNP
Wyss/NNP
advises/VBZ
people/NNS
who/WP
do/VBP
that/IN
``/``
the/DT
best/JJS
thing/NN
to/TO
be/VB
in/IN
is/VBZ
long/JJ
that/DT
is/VBZ
,/,
20-year/JJ
to/TO
30-year/JJ
Treasury/NNP
bonds/NNS
./.
''/''
The/DT
reason/NN
is/VBZ
simple/JJ
,/,
Mr./NNP
Wyss/NNP
says/VBZ
:/:
``/``
Interest/NN
rates/NNS
almost/RB
always/RB
decline/VBP
during/IN
recession/NN
./.
''/''
As/RB
surely/RB
as/IN
a/DT
seesaw/NN
tilts/VBZ
,/,
falling/VBG
interest/NN
rates/NNS
force/VBP
up/RB
the/DT
price/NN
of/IN
previously/RB
issued/VBN
bonds/NNS
./.
They/PRP
are/VBP
worth/JJ
more/JJR
because/IN
they/PRP
pay/VBP
higher/JJR
interest/NN
than/IN
newly/RB
issued/VBN
bonds/NNS
do/VBP
./.
That/DT
effect/NN
holds/VBZ
true/JJ
for/IN
both/DT
short-term/JJ
and/CC
long-term/JJ
bonds/NNS
./.
But/CC
short-term/JJ
bonds/NNS
ca/MD
n't/RB
rise/VB
too/RB
much/RB
,/,
because/IN
everyone/NN
knows/VBZ
they/PRP
will/MD
be/VB
redeemed/VBN
at/IN
a/DT
preset/JJ
price/NN
fairly/RB
soon/RB
./.
Long-term/JJ
bonds/NNS
,/,
with/IN
many/JJ
years/NNS
left/VBN
before/IN
maturity/NN
,/,
swing/VBP
more/RBR
widely/RB
in/IN
price/NN
./.
But/CC
not/RB
just/RB
any/DT
bonds/NNS
will/MD
do/VB
./.
Corporate/JJ
bonds/NNS
``/``
are/VBP
usually/RB
not/RB
a/DT
good/JJ
bet/NN
in/IN
a/DT
recession/NN
,/,
''/''
Mr./NNP
Wyss/NNP
says/VBZ
./.
As/IN
times/NNS
get/VBP
tougher/JJR
,/,
investors/NNS
fret/VBP
about/IN
whether/IN
companies/NNS
will/MD
have/VB
enough/JJ
money/NN
to/TO
pay/VB
their/PRP$
debts/NNS
./.
This/DT
hurts/VBZ
the/DT
price/NN
of/IN
corporate/JJ
bonds/NNS
./.
Also/RB
,/,
he/PRP
notes/VBZ
,/,
``/``
most/JJS
corporate/JJ
bonds/NNS
are/VBP
callable/JJ
./.
''/''
That/DT
means/VBZ
that/IN
a/DT
corporation/NN
,/,
after/IN
a/DT
specified/VBN
amount/NN
of/IN
time/NN
has/VBZ
passed/VBN
,/,
can/MD
buy/VB
back/RB
its/PRP$
bonds/NNS
by/IN
paying/VBG
investors/NNS
the/DT
face/NN
value/NN
some/DT
cases/NNS
,/,
a/DT
sweetener/NN
When/WRB
interest/NN
rates/NNS
have/VBP
dropped/VBN
,/,
it/PRP
makes/VBZ
sense/NN
for/IN
corporations/NNS
to/TO
do/VB
just/RB
that/DT
;/:
they/PRP
then/RB
save/VBP
on/IN
interest/NN
costs/NNS
./.
But/CC
the/DT
investors/NNS
are/VBP
left/VBN
stranded/VBN
with/IN
money/NN
to/TO
reinvest/VB
at/IN
a/DT
time/NN
when/WRB
interest/NN
rates/NNS
are/VBP
puny/JJ
./.
If/IN
corporate/JJ
bonds/NNS
are/VBP
bad/JJ
in/IN
recessions/NNS
,/,
junk/NN
bonds/NNS
are/VBP
likely/JJ
to/TO
be/VB
the/DT
worst/JJS
of/IN
all/DT
./.
It/PRP
's/VBZ
an/DT
``/``
absolute/JJ
necessity/NN
''/''
to/TO
get/VB
out/IN
of/IN
junk/NN
bonds/NNS
when/WRB
a/DT
recession/NN
is/VBZ
in/IN
the/DT
offing/NN
,/,
says/VBZ
Avner/NNP
Arbel/NNP
,/,
professor/NN
of/IN
finance/NN
at/IN
Cornell/NNP
University/NNP
./.
``/``
Such/JJ
bonds/NNS
are/VBP
very/RB
sensitive/JJ
to/TO
the/DT
downside/NN
,/,
and/CC
this/DT
could/MD
be/VB
a/DT
disaster/NN
./.
''/''
Municipal/JJ
bonds/NNS
are/VBP
generally/RB
a/DT
bit/NN
safer/JJR
than/IN
corporate/JJ
bonds/NNS
in/IN
a/DT
recession/NN
,/,
but/CC
not/RB
as/RB
safe/JJ
as/IN
bonds/NNS
issued/VBN
by/IN
the/DT
federal/JJ
government/NN
./.
During/IN
an/DT
economic/JJ
slump/NN
,/,
local/JJ
tax/NN
revenues/NNS
often/RB
go/VBP
down/RB
,/,
raising/VBG
the/DT
risks/NNS
associated/VBN
with/IN
at/IN
least/JJS
some/DT
municipals/NNS
./.
And/CC
,/,
like/IN
corporates/NNS
,/,
many/JJ
municipal/JJ
bonds/NNS
are/VBP
callable/JJ
./.
But/CC
a/DT
few/JJ
experts/NNS
,/,
going/VBG
against/IN
the/DT
consensus/NN
,/,
do/VBP
n't/RB
think/VB
bonds/NNS
would/MD
help/VB
investors/NNS
even/RB
if/IN
a/DT
recession/NN
is/VBZ
in/IN
the/DT
offing/NN
./.
One/CD
of/IN
these/DT
is/VBZ
Jeffrey/NNP
L./NNP
Beach/NNP
,/,
director/NN
of/IN
research/NN
for/IN
Underwood/NNP
Neuhaus/NNP
&/CC
Co./NNP
,/,
a/DT
brokerage/NN
house/NN
in/IN
Houston/NNP
,/,
who/WP
thinks/VBZ
that/IN
``/``
we/PRP
're/VBP
either/CC
in/IN
a/DT
recession/NN
or/CC
about/IN
to/TO
go/VB
into/IN
one/CD
./.
''/''
What/WP
's/VBZ
more/JJR
,/,
he/PRP
thinks/VBZ
this/DT
could/MD
be/VB
a/DT
nastier/JJR
recession/NN
than/IN
usual/JJ
:/:
``/``
Once/RB
the/DT
downturn/NN
comes/VBZ
,/,
it/PRP
's/VBZ
going/VBG
to/TO
be/VB
very/RB
hard/JJ
to/TO
reverse/VB
./.
''/''
Investors/NNS
,/,
he/PRP
advises/VBZ
,/,
``/``
should/MD
be/VB
cautious/JJ
,/,
''/''
holding/VBG
fewer/JJR
stocks/NNS
than/IN
usual/JJ
and/CC
also/RB
shunning/VBG
bonds/NNS
./.
Because/IN
he/PRP
sees/VBZ
a/DT
``/``
5/CD
%/NN
to/TO
6/CD
%/NN
base/NN
rate/NN
of/IN
inflation/NN
in/IN
the/DT
economy/NN
,/,
''/''
he/PRP
doubts/VBZ
that/IN
interest/NN
rates/NNS
will/MD
fall/VB
much/RB
any/DT
time/NN
soon/RB
./.
Instead/RB
,/,
Mr./NNP
Beach/NNP
says/VBZ
,/,
investors/NNS
``/``
probably/RB
should/MD
be/VB
carrying/VBG
a/DT
very/RB
high/JJ
level/NN
of/IN
cash/NN
,/,
''/''
by/IN
which/WDT
he/PRP
means/VBZ
such/JJ
so-called/JJ
cash/NN
equivalents/NNS
as/IN
money-market/JJ
funds/NNS
and/CC
Treasury/NNP
bills/NNS
./.
Greg/NNP
Confair/NNP
,/,
president/NN
of/IN
Sigma/NNP
Financial/NNP
Inc./NNP
in/IN
Allentown/NNP
,/,
Pa./NNP
,/,
also/RB
recommends/VBZ
that/IN
investors/NNS
go/VB
heavily/RB
for/IN
cash/NN
./.
He/PRP
is/VBZ
n't/RB
sure/RB
a/DT
recession/NN
is/VBZ
coming/VBG
,/,
but/CC
says/VBZ
the/DT
other/JJ
likely/JJ
alternative/NN
--/:
reignited/VBN
inflation/NN
--/:
is/VBZ
just/RB
as/RB
bad/JJ
./.
``/``
This/DT
late/JJ
in/IN
an/DT
expansion/NN
,/,
''/''
the/DT
economy/NN
tends/VBZ
to/TO
veer/VB
off/RP
either/CC
into/IN
damaging/JJ
inflation/NN
or/CC
into/IN
a/DT
recession/NN
,/,
Mr./NNP
Confair/NNP
says/VBZ
./.
The/DT
Federal/NNP
Reserve/NNP
Board/NNP
's/POS
plan/NN
for/IN
a/DT
``/``
soft/JJ
landing/NN
,/,
''/''
he/PRP
says/VBZ
,/,
requires/VBZ
the/DT
Fed/NNP
to/TO
navigate/VB
``/``
an/DT
ever-narrowing/JJ
corridor/NN
./.
''/''
A/DT
soft/JJ
landing/NN
is/VBZ
n't/RB
something/NN
that/WDT
can/MD
be/VB
achieved/VBN
once/RB
and/CC
for/IN
all/DT
,/,
Mr./NNP
Confair/NNP
adds/VBZ
./.
It/PRP
has/VBZ
to/TO
be/VB
engineered/VBN
over/RB
and/CC
over/RB
again/RB
,/,
month/NN
after/IN
month/NN
./.
He/PRP
believes/VBZ
that/IN
the/DT
task/NN
facing/VBG
Fed/NNP
Chairman/NNP
Alan/NNP
Greenspan/NNP
is/VBZ
so/RB
difficult/JJ
that/IN
it/PRP
resembles/VBZ
``/``
juggling/NN
a/DT
double-bladed/JJ
ax/NN
and/CC
a/DT
buzz/NN
saw/NN
./.
''/''
And/CC
,/,
in/IN
a/DT
sense/NN
,/,
that/DT
's/VBZ
the/DT
kind/NN
of/IN
task/NN
individuals/NNS
face/VBP
in/IN
deciding/VBG
what/WP
to/TO
do/VB
about/IN
stocks/NNS
--/:
the/DT
mainstay/NN
of/IN
most/JJS
serious/JJ
investors/NNS
'/POS
portfolios/NNS
./.
It/PRP
comes/VBZ
down/RP
to/TO
a/DT
question/NN
of/IN
whether/IN
to/TO
try/VB
to/TO
``/``
time/VB
''/''
the/DT
market/NN
./.
For/IN
people/NNS
who/WP
can/MD
ride/VB
out/RP
market/NN
waves/NNS
through/IN
good/JJ
times/NNS
and/CC
bad/JJ
,/,
stocks/NNS
have/VBP
been/VBN
rewarding/JJ
long-term/JJ
investments/NNS
./.
Most/JJS
studies/NNS
show/VBP
that/IN
buy-and-hold/CD
investors/NNS
historically/RB
have/VBP
earned/VBN
an/DT
annual/JJ
return/NN
from/IN
stocks/NNS
of/IN
9/CD
%/NN
to/TO
10/CD
%/NN
,/,
including/VBG
both/DT
dividends/NNS
and/CC
price/NN
appreciation/NN
./.
That/DT
's/VBZ
well/RB
above/IN
what/WP
bonds/NNS
or/CC
bank/NN
certificates/NNS
have/VBP
paid/VBN
./.
Moreover/RB
,/,
because/IN
no/DT
one/PRP
knows/VBZ
for/IN
sure/JJ
just/RB
when/WRB
a/DT
recession/NN
is/VBZ
coming/VBG
,/,
some/DT
analysts/NNS
think/VBP
investors/NNS
should/MD
n't/RB
even/RB
worry/VB
too/RB
much/RB
about/IN
timing/NN
./.
``/``
Trying/VBG
to/TO
time/NN
the/DT
economy/NN
is/VBZ
a/DT
mistake/NN
,/,
''/''
says/VBZ
David/NNP
Katz/NNP
,/,
chief/JJ
investment/NN
officer/NN
of/IN
Value/NNP
Matrix/NNP
Management/NNP
Inc./NNP
in/IN
New/NNP
York/NNP
./.
Mr./NNP
Katz/NNP
notes/VBZ
that/IN
some/DT
economists/NNS
have/VBP
been/VBN
predicting/VBG
a/DT
recession/NN
for/IN
at/IN
least/JJS
two/CD
years/NNS
./.
Investors/NNS
who/WP
listened/VBD
,/,
and/CC
lightened/VBD
up/RP
on/IN
stocks/NNS
,/,
``/``
have/VBP
just/RB
hurt/VBN
themselves/PRP
,/,
''/''
he/PRP
says/VBZ
./.
Mr./NNP
Katz/NNP
adds/VBZ
that/IN
people/NNS
who/WP
jump/VBP
in/IN
and/CC
out/IN
of/IN
the/DT
stock/NN
market/NN
need/VBP
to/TO
be/VB
right/JJ
about/RB
70/CD
%/NN
of/IN
the/DT
time/NN
to/TO
beat/VB
a/DT
buy-and-hold/JJ
strategy/NN
./.
Frequent/JJ
trading/NN
runs/NNS
up/IN
high/JJ
commission/NN
costs/NNS
./.
And/CC
the/DT
in-and-outer/NN
might/MD
miss/VB
the/DT
sudden/JJ
spurts/NNS
that/WDT
account/VBP
for/IN
much/JJ
of/IN
the/DT
stock/NN
market/NN
's/POS
gains/NNS
over/IN
time/NN
./.
Still/RB
,/,
few/JJ
investors/NNS
are/VBP
able/JJ
to/TO
sit/VB
tight/RB
when/WRB
they/PRP
are/VBP
convinced/VBN
a/DT
recession/NN
is/VBZ
coming/VBG
./.
After/IN
all/DT
,/,
in/IN
all/DT
five/CD
recessions/NNS
since/IN
1960/CD
,/,
stocks/NNS
declined/VBD
./.
According/VBG
to/TO
Ned/NNP
Davis/NNP
,/,
president/NN
of/IN
Ned/NNP
Davis/NNP
Research/NNP
Inc./NNP
in/IN
Nokomis/NNP
,/,
Fla./NNP
,/,
the/DT
average/JJ
drop/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
was/VBD
about/RB
21/CD
%/NN
,/,
and/CC
the/DT
decrease/NN
began/VBD
an/DT
average/NN
of/IN
six/CD
months/NNS
before/IN
a/DT
recession/NN
officially/RB
started/VBD
./.
By/IN
the/DT
time/NN
a/DT
recession/NN
is/VBZ
``/``
official/JJ
''/''
(/(
two/CD
consecutive/JJ
quarters/NNS
of/IN
declining/VBG
gross/JJ
national/JJ
product/NN
the/DT
damage/NN
to/TO
stocks/NNS
has/VBZ
already/RB
been/VBN
done/VBN
-/:
and/CC

,/,
in/IN
the/DT
typical/JJ
case/NN
,/,
the/DT
recession/NN
is/VBZ
already/RB
half/RB
over/JJ
./.
About/RB
six/CD
months/NNS
before/IN
a/DT
recession/NN
ends/VBZ
,/,
stocks/NNS
typically/RB
begin/VBP
to/TO
rise/VB
again/RB
,/,
as/IN
investors/NNS
anticipate/VBP
a/DT
recovery/NN
./.
The/DT
average/JJ
recession/NN
lasts/VBZ
about/RB
a/DT
year/NN
./.
Unfortunately/RB
,/,
though/RB
,/,
recessions/NNS
vary/VBP
enough/RB
in/IN
length/NN
so/RB
that/IN
the/DT
average/NN
ca/MD
n't/RB
reliably/RB
be/VB
used/VBN
to/TO
guide/VB
investors/NNS
in/IN
timing/VBG
stock/NN
sales/NNS
or/CC
purchases/NNS
./.
But/CC
whatever/WDT
their/PRP$
advice/NN
about/IN
timing/NN
,/,
none/NN
of/IN
these/DT
experts/NNS
recommend/VBP
jettisoning/VBG
stocks/NNS
entirely/RB
during/IN
a/DT
recession/NN
./.
For/IN
the/DT
portion/NN
of/IN
an/DT
investor/NN
's/POS
portfolio/NN
that/WDT
stays/VBZ
in/IN
stocks/NNS
,/,
professionals/NNS
have/VBP
a/DT
number/NN
of/IN
suggestions/NNS
./.
Mr./NNP
Katz/NNP
advocates/VBZ
issues/NNS
with/IN
low/JJ
price-earnings/JJ
ratios/NNS
--/:
that/DT
is/VBZ
,/,
low/JJ
prices/NNS
in/IN
relation/NN
to/TO
the/DT
company/NN
's/POS
earnings/NNS
per/IN
share/NN
./.
``/``
Low/NNP
P-E/NNP
''/''
stocks/NNS
,/,
he/PRP
says/VBZ
,/,
vastly/RB
outperform/VBP
others/NNS
``/``
during/IN
a/DT
recession/NN
or/CC
bear/NN
market/NN
./.
''/''
In/IN
good/JJ
times/NNS
,/,
he/PRP
says/VBZ
,/,
they/PRP
lag/VBP
a/DT
bit/NN
,/,
but/CC
overall/RB
they/PRP
provide/VBP
superior/JJ
performance/NN
./.
Prof./NNP
Arbel/NNP
urges/VBZ
investors/NNS
to/TO
discard/VB
stocks/NNS
in/IN
small/JJ
companies/NNS
./.
Small-company/JJ
shares/NNS
typically/RB
fall/VBP
more/RBR
than/IN
big-company/JJ
stocks/NNS
in/IN
a/DT
recession/NN
,/,
he/PRP
says/VBZ
./.
And/CC
in/IN
any/DT
case/NN
,/,
he/PRP
argues/VBZ
,/,
stocks/NNS
of/IN
small/JJ
companies/NNS
are/VBP
``/``
almost/RB
as/RB
overpriced/JJ
as/IN
they/PRP
were/VBD
Sept./NNP
30/CD
,/,
1987/CD
,/,
just/RB
before/IN
the/DT
crash/NN
./.
''/''
For/IN
example/NN
,/,
Mr./NNP
Arbel/NNP
says/VBZ
,/,
stocks/NNS
of/IN
small/JJ
companies/NNS
are/VBP
selling/VBG
for/IN
about/RB
19/CD
times/NNS
cash/NN
flow/NN
./.
Cash/NN
flow/NN
,/,
basically/RB
earnings/NNS
plus/IN
depreciation/NN
,/,
is/VBZ
one/CD
common/JJ
gauge/NN
of/IN
a/DT
company/NN
's/POS
financial/JJ
health/NN
./.
ratio/NN
is/VBZ
dangerously/RB
close/JJ
to/TO
the/DT
ratio/NN
of/IN
19.7/CD
that/WDT
prevailed/VBD
before/IN
the/DT
1987/CD
stock-market/NN
crash/NN
,/,
Mr./NNP
Arbel/NNP
says/VBZ
./.
And/CC
it/PRP
's/VBZ
way/NN
above/IN
the/DT
ratio/NN
7.5/CD
times/NNS
cash/NN
flow/NN
bigger/JJR
companies/NNS
are/VBP
selling/VBG
for/RP
./.
Another/DT
major/JJ
trick/NN
in/IN
making/VBG
a/DT
portfolio/NN
recession-resistant/JJ
is/VBZ
choosing/VBG
stocks/NNS
in/IN
``/``
defensive/JJ
''/''
industries/NNS
./.
Food/NN
,/,
tobacco/NN
,/,
drugs/NNS
and/CC
utilities/NNS
are/VBP
the/DT
classic/JJ
examples/NNS
./.
Recession/NN
or/CC
not/RB
,/,
people/NNS
still/RB
eat/VBP
,/,
smoke/VBP
,/,
and/CC
take/VBP
medicine/NN
when/WRB
they/PRP
're/VBP
sick/JJ
./.
George/NNP
Putnam/NNP
III/NNP
,/,
editor/NN
of/IN
Turnaround/NNP
Letter/NNP
in/IN
Boston/NNP
,/,
offers/VBZ
one/CD
final/JJ
tip/NN
for/IN
recession-wary/JJ
investors/NNS
./.
``/``
Keep/VB
some/DT
money/NN
available/JJ
for/IN
opportunities/NNS
,/,
''/''
he/PRP
says/VBZ
./.
``/``
If/IN
the/DT
recession/NN
does/VBZ
hit/VB
,/,
there/EX
will/MD
be/VB
some/DT
great/JJ
investment/NN
opportunities/NNS
just/RB
when/WRB
things/NNS
seem/VBP
the/DT
blackest/JJS
./.
''/''
Mr./NNP
Dorfman/NNP
covers/VBZ
investing/NN
issues/NNS
from/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
's/POS
New/NNP
York/NNP
bureau/NN
./.
Some/DT
industry/NN
groups/NNS
consistently/RB
weather/VBP
the/DT
storm/NN
better/RBR
than/IN
others/NNS
./.
The/DT
following/NN
shows/VBZ
the/DT
number/NN
of/IN
times/NNS
these/DT
industries/NNS
outperformed/VBD
the/DT
Standard/NNP
&/CC
Poor/NNP
's/POS
500-Stock/NNP
Index/NNP
during/IN
the/DT
first/JJ
six/CD
months/NNS
of/IN
the/DT
past/JJ
seven/CD
recessions/NNS
./.
Source/NN
:/:
Merrill/NNP
Lynch/NNP
Bond/NN
prices/NNS
posted/VBD
strong/JJ
gains/NNS
as/IN
investors/NNS
went/VBD
on/IN
a/DT
bargain/NN
hunt/NN
./.
But/CC
while/IN
the/DT
overall/JJ
market/NN
improved/VBN
,/,
the/DT
new-issue/JJ
junk-bond/JJ
market/NN
continued/VBD
to/TO
count/VB
casualties/NNS
,/,
even/RB
as/IN
junk-bond/JJ
prices/NNS
rose/VBD
./.
Yesterday/NN
,/,
Prudential-Bache/NNP
Securities/NNP
Inc./NNP
said/VBD
it/PRP
postponed/VBD
a/DT
$/$
220/CD
million/CD
senior/JJ
subordinated/VBN
debenture/NN
offering/NN
by/IN
York/NNP
International/NNP
Corp/NNP
./.
And/CC
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
Securities/NNP
Corp./NNP
scrambled/VBD
to/TO
restructure/NN
and/CC
improve/VB
the/DT
potential/JJ
returns/NNS
on/IN
a/DT
$/$
475/CD
million/CD
debenture/NN
offering/NN
by/IN
Chicago/NNP
&/CC
North/NNP
Western/NNP
Acquisition/NNP
Corp./NNP
that/WDT
was/VBD
still/RB
being/VBG
negotiated/VBN
late/JJ
last/JJ
night/NN
./.
The/DT
issue/NN
by/IN
Chicago/NNP
&/CC
North/NNP
Western/NNP
is/VBZ
one/CD
of/IN
the/DT
so-called/JJ
good/JJ
junk-bond/JJ
offerings/NNS
on/IN
the/DT
new-issue/JJ
calendar/NN
./.
Some/DT
analysts/NNS
said/VBD
the/DT
restructuring/NN
of/IN
the/DT
railroad/NN
concern/NN
's/POS
issue/NN
shows/VBZ
how/WRB
tough/JJ
it/PRP
is/VBZ
for/IN
underwriters/NNS
to/TO
sell/VB
even/RB
the/DT
junk/NN
bonds/NNS
of/IN
a/DT
company/NN
considered/VBN
to/TO
be/VB
a/DT
relatively/RB
good/JJ
credit/NN
risk/NN
./.
Since/IN
last/JJ
week/NN
's/POS
junk-bond/JJ
market/NN
debacle/NN
,/,
many/JJ
new/JJ
issues/NNS
of/IN
high-yield/JJ
,/,
high-risk/JJ
corporate/JJ
bonds/NNS
have/VBP
either/RB
been/VBN
scaled/VBN
back/RB
,/,
delayed/VBN
or/CC
dropped/VBN
./.
On/IN
Wednesday/NNP
,/,
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
had/VBD
to/TO
slash/VB
the/DT
size/NN
of/IN
Continental/NNP
Airlines/NNP
'/POS
junk-bond/JJ
offering/NN
to/TO
$/$
71/CD
million/CD
from/IN
$/$
150/CD
million/CD
./.
Salomon/NNP
Brothers/NNP
Inc./NNP
has/VBZ
delayed/VBN
Grand/NNP
Union/NNP
Co./NNP
's/POS
$/$
1.16/CD
billion/CD
junk-bond/JJ
offering/NN
while/IN
it/PRP
restructures/VBZ
the/DT
transaction/NN
./.
Last/JJ
week/NN
,/,
the/DT
Grand/NNP
Union/NNP
offering/NN
was/VBD
sweetened/VBN
to/TO
include/VB
warrants/NNS
that/WDT
allow/VBP
bondholders/NNS
to/TO
acquire/VB
common/JJ
stock/NN
./.
Prudential-Bache/NNP
said/VBD
the/DT
York/NNP
issue/NN
was/VBD
delayed/VBN
because/RB
of/IN
market/NN
conditions/NNS
./.
``/``
Everything/NN
is/VBZ
going/VBG
through/IN
firehoops/NNS
right/RB
now/RB
,/,
and/CC
{/(
Chicago/NNP
&/CC
North/NNP
Western/NNP
no/DT
exception/NN
,/,
''/''
said/VBD
Mariel/NNP
Clemensen/NNP
,/,
vice/NN
president/NN
,/,
high-yield/JJ
research/NN
,/,
at/IN
Citicorp/NNP
./.
Portfolio/NN
managers/NNS
say/VBP
sweeteners/NNS
like/IN
equity/NN
kickers/NNS
and/CC
stricter/JJR
protective/JJ
covenants/NNS
may/MD
increasingly/RB
be/VB
required/VBN
to/TO
sell/VB
junk-bond/JJ
deals/NNS
./.
Dan/NNP
Baldwin/NNP
,/,
managing/VBG
director/NN
of/IN
high-yield/JJ
investments/NNS
at/IN
Chancellor/NNP
Capital/NNP
Management/NNP
,/,
said/VBD
the/DT
Chicago/NNP
&/CC
North/NNP
Western/NNP
offering/NN
was/VBD
restructured/VBN
in/IN
part/NN
because/IN
``/``
several/JJ
large/JJ
insurance/NN
buyers/NNS
right/RB
now/RB
are/VBP
demanding/VBG
equity/NN
as/IN
part/NN
of/IN
the/DT
package/NN
./.
If/IN
you/PRP
're/VBP
going/VBG
to/TO
take/VB
the/DT
risk/NN
in/IN
this/DT
market/NN
,/,
you/PRP
want/VBP
something/NN
extra/JJ
./.
''/''
Mr./NNP
Baldwin/NNP
likes/VBZ
the/DT
offering/NN
./.
But/CC
several/JJ
mutual-fund/JJ
managers/NNS
,/,
nervous/JJ
about/IN
the/DT
deteriorating/VBG
quality/NN
of/IN
their/PRP$
junk-bond/JJ
portfolios/NNS
and/CC
shy/JJ
about/IN
buying/VBG
new/JJ
issues/NNS
,/,
said/VBD
they/PRP
're/VBP
staying/VBG
away/RB
from/IN
any/DT
junk/NN
security/NN
that/WDT
is/VBZ
n't/RB
considered/VBN
first/JJ
rate/NN
for/IN
its/PRP$
class/NN
./.
While/IN
they/PRP
consider/VBP
the/DT
Chicago/NNP
&/CC
North/NNP
Western/NNP
issue/NN
to/TO
be/VB
good/JJ
,/,
they/PRP
do/VBP
n't/RB
view/VB
it/PRP
as/IN
the/DT
best/JJS
./.
To/TO
lure/VB
buyers/NNS
to/TO
the/DT
Chicago/NNP
&/CC
North/NNP
Western/NNP
bonds/NNS
,/,
portfolio/NN
managers/NNS
said/VBD
Donaldson/NNP
Lufkin/NNP
sweetened/VBD
the/DT
transaction/NN
by/IN
offering/VBG
the/DT
bonds/NNS
with/IN
a/DT
resettable/JJ
interest/NN
rate/NN
and/CC
a/DT
10/CD
%/NN
equity/NN
kicker/NN
./.
The/DT
bonds/NNS
are/VBP
expected/VBN
to/TO
have/VB
a/DT
14/CD
1\/2/CD
%/NN
coupon/NN
rate/NN
./.
The/DT
equity/NN
arrangement/NN
apparently/RB
would/MD
allow/VB
bondholders/NNS
to/TO
buy/VB
a/DT
total/NN
of/IN
10/CD
%/NN
of/IN
the/DT
stock/NN
of/IN
CNW/NNP
Corp./NNP
,/,
Chicago/NNP
&/CC
North/NNP
Western/NNP
's/POS
parent/NN
company/NN
./.
Donaldson/NNP
Lufkin/NNP
declined/VBD
to/TO
comment/VB
on/IN
the/DT
restructuring/NN
./.
According/VBG
to/TO
some/DT
analysts/NNS
familiar/JJ
with/IN
the/DT
negotiations/NNS
,/,
the/DT
10/CD
%/NN
of/IN
equity/NN
would/MD
come/VB
directly/RB
from/IN
Donaldson/NNP
Lufkin/NNP
and/CC
a/DT
fund/NN
affiliated/VBN
with/IN
the/DT
investment/NN
bank/NN
Blackstone/NNP
Group/NNP
,/,
which/WDT
would/MD
reduce/VB
their/PRP$
CNW/NNP
equity/NN
holdings/NNS
by/IN
5/CD
%/NN
each/DT
./.
That/DT
would/MD
leave/VB
the/DT
Blackstone/NNP
fund/NN
with/IN
a/DT
60/CD
%/NN
stake/NN
and/CC
Donaldson/NNP
Lufkin/NNP
with/IN
15/CD
%/NN
./.
Despite/IN
the/DT
problems/NNS
with/IN
new/JJ
issues/NNS
,/,
high-yield/JJ
bonds/NNS
showed/VBD
gains/NNS
in/IN
the/DT
secondary/JJ
,/,
or/CC
resell/JJ
,/,
market/NN
./.
Junk/NN
bonds/NNS
ended/VBD
about/RB
one-half/JJ
point/NN
higher/RBR
with/IN
so-called/JJ
high-quality/JJ
issues/NNS
from/IN
RJR/NNP
Capital/NNP
Holdings/NNP
Corp./NNP
and/CC
Petrolane/NNP
Gas/NNP
Service/NNP
Limited/NNP
Partnership/NNP
rising/VBG
one/CD
point/NN
./.
In/IN
the/DT
Treasury/NNP
market/NN
,/,
the/DT
benchmark/NN
30-year/JJ
bond/NN
rose/VBD
seven-eighths/JJ
point/NN
,/,
or/CC
$/$
8.75/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
./.
The/DT
gain/NN
reflects/VBZ
fresh/JJ
economic/JJ
evidence/NN
that/DT
inflation/NN
is/VBZ
moderating/VBG
while/IN
the/DT
economy/NN
slows/VBZ
./.
That/DT
raised/VBD
hopes/NNS
that/IN
interest/NN
rates/NNS
will/MD
continue/VB
to/TO
move/VB
lower/RBR
./.
The/DT
Labor/NNP
Department/NNP
reported/VBD
that/IN
consumer/NN
prices/NNS
rose/VBD
just/RB
0.2/CD
%/NN
last/JJ
month/NN
,/,
slightly/RB
lower/JJR
than/IN
some/DT
economists/NNS
had/VBD
expected/VBN
./.
But/CC
there/EX
were/VBD
also/RB
rumors/NNS
yesterday/NN
that/IN
several/JJ
Japanese/JJ
institutional/JJ
investors/NNS
were/VBD
shifting/VBG
their/PRP$
portfolios/NNS
and/CC
buying/VBG
long-term/JJ
bonds/NNS
while/IN
selling/VBG
shorter-term/JJ
Treasurys/NNPS
./.
Short-term/NNP
Treasury/NNP
securities/NNS
ended/VBD
narrowly/RB
mixed/VBN
,/,
with/IN
two-year/JJ
notes/NNS
posting/VBG
slight/JJ
declines/NNS
while/IN
three-year/JJ
notes/NNS
were/VBD
slightly/RB
higher/JJR
./.
Yesterday/NN
,/,
the/DT
Fed/NNP
executed/VBD
four-day/JJ
matched/VBN
sales/NNS
,/,
a/DT
technical/JJ
trading/NN
operation/NN
designed/VBN
to/TO
drain/VB
reserves/NNS
from/IN
the/DT
banking/NN
system/NN
./.
The/DT
move/NN
was/VBD
interpreted/VBN
by/IN
some/DT
economists/NNS
as/IN
a/DT
sign/NN
that/IN
the/DT
Fed/NNP
does/VBZ
n't/RB
want/VB
the/DT
federal/JJ
funds/NNS
rate/NN
to/TO
move/VB
any/DT
lower/RBR
than/IN
the/DT
8/CD
3\/4/CD
%/NN
at/IN
which/WDT
it/PRP
has/VBZ
been/VBN
hovering/VBG
around/RP
during/IN
the/DT
past/JJ
week/NN
./.
The/DT
closely/RB
watched/VBN
funds/NNS
rate/NN
is/VBZ
what/WP
banks/NNS
charge/VBP
each/DT
other/JJ
on/IN
overnight/JJ
loans/NNS
./.
It/PRP
is/VBZ
considered/VBN
an/DT
early/JJ
signal/NN
of/IN
Fed/NNP
credit/NN
policy/NN
changes/NNS
./.
``/``
The/DT
fact/NN
that/IN
they/PRP
did/VBD
four-day/JJ
matched/VBN
sales/NNS
means/VBZ
they/PRP
are/VBP
not/RB
in/IN
a/DT
mood/NN
to/TO
ease/VB
aggressively/RB
./.
They/PRP
are/VBP
telling/VBG
us/PRP
that/IN
{/(
8/CD
3\/4/CD
%/NN
they/PRP
want/VBP
to/TO
see/VB
the/DT
fed/NN
funds/NNS
rate/NN
,/,
''/''
said/VBD
Robert/NNP
Chandross/NNP
at/IN
Lloyds/NNP
Bank/NNP
PLC/NNP
./.
Treasury/NNP
Securities/NNP
The/DT
benchmark/NN
30-year/JJ
bond/NN
was/VBD
quoted/VBN
late/RB
at/IN
a/DT
price/NN
of/IN
101/CD
25\/32/CD
to/TO
yield/VB
7.955/CD
%/NN
,/,
compared/VBN
with/IN
100/CD
29\/32/CD
to/TO
yield/VB
8.032/CD
%/NN
Wednesday/NNP
./.
The/DT
latest/JJS
10-year/JJ
notes/NNS
were/VBD
quoted/VBN
late/RB
at/IN
100/CD
9\/32/CD
to/TO
yield/VB
7.937/CD
%/NN
,/,
compared/VBN
with/IN
99/CD
26\/32/CD
to/TO
yield/VB
8.007/CD
%/NN
./.
Short-term/JJ
rates/NNS
rose/VBD
yesterday/NN
./.
The/DT
discount/NN
rate/NN
on/IN
three-month/JJ
Treasury/NNP
bills/NNS
rose/VBD
to/TO
7.56/CD
%/NN
from/IN
7.51/CD
%/NN
Wednesday/NNP
,/,
while/IN
the/DT
rate/NN
on/IN
six-month/JJ
bills/NNS
rose/VBD
to/TO
7.57/CD
%/NN
from/IN
7.53/CD
%/NN
./.
Meanwhile/RB
,/,
the/DT
Treasury/NNP
sold/VBD
$/$
9.75/CD
billion/CD
of/IN
52-week/JJ
bills/NNS
yesterday/NN
./.
The/DT
average/JJ
yield/NN
on/IN
the/DT
bills/NNS
was/VBD
7.35/CD
%/NN
,/,
down/RB
from/IN
7.61/CD
%/NN
at/IN
the/DT
previous/JJ
52-week/JJ
bill/NN
auction/NN
Sept./NNP
21/CD
./.
Yesterday/NN
's/POS
yield/NN
was/VBD
the/DT
lowest/JJS
since/IN
7.22/CD
%/NN
on/IN
July/NNP
27/CD
./.
Here/RB
are/VBP
details/NNS
of/IN
the/DT
auction/NN
:/:
Rates/NNS
are/VBP
determined/VBN
by/IN
the/DT
difference/NN
between/IN
the/DT
purchase/NN
price/NN
and/CC
face/NN
value/NN
./.
Thus/RB
,/,
higher/JJR
bidding/NN
narrows/VBZ
the/DT
investor/NN
's/POS
return/NN
while/IN
lower/JJR
bidding/NN
widens/VBZ
it/PRP
./.
The/DT
percentage/NN
rates/NNS
are/VBP
calculated/VBN
on/IN
a/DT
360-day/JJ
year/NN
,/,
while/IN
the/DT
coupon-equivalent/JJ
yield/NN
is/VBZ
based/VBN
on/IN
a/DT
365-day/JJ
year/NN
./.
Corporate/JJ
Issues/NNS
Junk/NN
bond/NN
price/NN
climbed/VBD
yesterday/NN
despite/IN
skittishness/NN
in/IN
the/DT
new-issue/JJ
market/NN
for/IN
high-yield/JJ
securities/NNS
./.
Dealers/NNS
said/VBD
junk/NN
bond/NN
issues/NNS
on/IN
average/NN
were/VBD
up/RB
by/IN
1\/4/CD
to/TO
1\/2/CD
point/NN
with/IN
so-called/JJ
quality/NN
issues/NNS
from/IN
RJR/NNP
Capital/NNP
Holdings/NNP
Corp./NNP
and/CC
Petrolane/NNP
Gas/NNP
Service/NNP
Limited/NNP
Partnership/NNP
posting/VBG
one-point/JJ
gains/NNS
./.
Petrolane/NNP
Gas/NNP
Service/NNP
's/POS
13/CD
1\/4/CD
%/NN
debentures/NNS
traded/VBN
at/IN
102/CD
,/,
after/IN
trading/VBG
around/IN
par/NN
earlier/RBR
this/DT
week/NN
,/,
and/CC
RJR/NNP
's/POS
13/CD
1\/2/CD
%/NN
subordinated/VBN
debentures/NNS
of/IN
2001/CD
were/VBD
at/IN
101/CD
5\/8/CD
after/IN
trading/VBG
at/IN
below/IN
par/NN
earlier/RBR
this/DT
week/NN
./.
Investment-grade/JJ
bonds/NNS
were/VBD
unchanged/JJ
./.
Municipals/NNS
Activity/NN
was/VBD
brisk/JJ
in/IN
the/DT
high-grade/JJ
general/JJ
obligation/NN
market/NN
,/,
as/IN
a/DT
series/NN
of/IN
sell/NN
lists/NNS
hit/VBD
the/DT
Street/NN
and/CC
capped/VBD
upward/JJ
price/NN
movement/NN
in/IN
the/DT
sector/NN
./.
Traders/NNS
estimated/VBD
that/IN
more/JJR
than/IN
$/$
140/CD
million/CD
of/IN
high-grade/JJ
bonds/NNS
was/VBD
put/VBN
up/RP
for/IN
sale/NN
via/IN
bid-wanted/JJ
lists/NNS
circulated/VBN
by/IN
a/DT
handful/NN
of/IN
major/JJ
brokers/NNS
./.
There/EX
was/VBD
speculation/NN
that/IN
the/DT
supply/NN
was/VBD
coming/VBG
from/IN
a/DT
commercial/JJ
bank/NN
's/POS
portfolios/NNS
./.
According/VBG
to/TO
market/NN
participants/NNS
,/,
the/DT
bonds/NNS
were/VBD
met/VBN
with/IN
decent/JJ
bids/NNS
,/,
but/CC
the/DT
volume/NN
of/IN
paper/NN
left/VBD
high/JJ
grades/NNS
in/IN
the/DT
10-year/JJ
and/CC
under/JJ
maturity/NN
range/NN
unchanged/JJ
to/TO
0.05/CD
percentage/NN
point/NN
higher/JJR
in/IN
yield/NN
./.
Away/RB
from/IN
the/DT
general/JJ
obligation/NN
sector/NN
,/,
activity/NN
was/VBD
modest/JJ
./.
Long/JJ
dollar/NN
bonds/NNS
were/VBD
flat/JJ
to/TO
up/RB
3\/8/CD
point/NN
./.
New/NNP
Jersey/NNP
Turnpike/NNP
Authority/NNP
's/POS
7.20/CD
%/NN
issue/NN
of/IN
2018/CD
was/VBD
up/RB
3\/8/CD
at/IN
98/CD
3\/8/CD
bid/NN
to/TO
yield/VB
about/RB
7.32/CD
%/NN
,/,
down/RB
0.03/CD
percentage/NN
point/NN
./.
The/DT
debt/NN
of/IN
some/DT
California/NNP
issuers/NNS
pulled/VBD
off/RP
lows/NNS
reached/VBN
after/IN
Tuesday/NNP
's/POS
massive/JJ
earthquake/NN
,/,
although/IN
traders/NNS
said/VBD
market/NN
participants/NNS
remained/VBD
cautious/JJ
./.
California/NNP
expects/VBZ
to/TO
rely/VB
on/IN
federal/JJ
emergency/NN
funds/NNS
and/CC
its/PRP$
$/$
1.06/CD
billion/CD
in/IN
general/JJ
fund/NN
reserves/VBZ
to/TO
meet/VB
the/DT
estimated/VBN
$/$
500/CD
million/CD
to/TO
$/$
1/CD
billion/CD
in/IN
damages/NNS
resulting/VBG
from/IN
the/DT
quake/NN
,/,
according/VBG
to/TO
a/DT
state/NN
official/NN
./.
It/PRP
's/VBZ
also/RB
unclear/JJ
precisely/RB
how/WRB
the/DT
state/NN
will/MD
rebuild/VB
its/PRP$
reserve/NN
,/,
said/VBD
Cindy/NNP
Katz/NNP
,/,
assistant/JJ
director/NN
of/IN
California/NNP
's/POS
department/NN
of/IN
finance/NN
,/,
although/IN
she/PRP
noted/VBD
that/IN
a/DT
bond/NN
offering/NN
for/IN
that/DT
purpose/NN
is/VBZ
n't/RB
anticipated/VBN
./.
Meanwhile/RB
,/,
new/JJ
issuance/NN
was/VBD
slow/JJ
./.
The/DT
largest/JJS
sale/NN
in/IN
the/DT
competitive/JJ
arena/NN
was/VBD
a/DT
$/$
55.7/CD
million/CD
issue/NN
of/IN
school/NN
financing/NN
bonds/NNS
from/IN
the/DT
Virginia/NNP
Public/NNP
School/NNP
Authority/NNP
./.
A/DT
balance/NN
of/IN
$/$
25.8/CD
million/CD
remained/VBD
in/IN
late/JJ
order-taking/NN
,/,
according/VBG
to/TO
the/DT
lead/JJ
manager/NN
./.
Mortgage-Backed/JJ
Securities/NNS
Mortgage/NN
securities/NNS
generally/RB
ended/VBD
6\/32/CD
to/TO
9\/32/CD
point/NN
higher/RBR
,/,
but/CC
lagged/VBN
gains/NNS
in/IN
the/DT
Treasury/NNP
market/NN
because/IN
of/IN
a/DT
shift/NN
in/IN
the/DT
shape/NN
of/IN
the/DT
Treasury/NNP
yield/NN
curve/NN
and/CC
rumored/VBN
mortgage/NN
sales/NNS
by/IN
thrifts/NNS
./.
Premium/NNP
Government/NNP
National/NNP
Mortgage/NNP
Association/NNP
securities/NNS
with/IN
coupon/NN
rates/NNS
of/IN
13/CD
%/NN
and/CC
higher/JJR
actually/RB
declined/VBD
amid/IN
concerns/NNS
about/IN
increased/VBN
prepayments/NNS
because/IN
of/IN
a/DT
plan/NN
being/VBG
considered/VBN
by/IN
Congress/NNP
to/TO
speed/VB
the/DT
refinancing/NN
of/IN
government-subsidized/JJ
mortgages/NNS
./.
Ginnie/NNP
Mae/NNP
13/CD
%/NN
securities/NNS
were/VBD
down/RB
about/RB
1\/4/CD
at/IN
109/CD
30\/32/CD
./.
If/IN
the/DT
refinancing/NN
plan/NN
clears/VBZ
Congress/NNP
,/,
there/EX
could/MD
be/VB
fairly/RB
heavy/JJ
prepayments/NNS
on/IN
the/DT
premium/NN
securities/NNS
,/,
hurting/VBG
any/DT
investor/NN
paying/VBG
much/RB
above/JJ
par/NN
for/IN
them/PRP
./.
In/IN
the/DT
current-coupon/JJ
sector/NN
,/,
a/DT
shift/NN
in/IN
the/DT
Treasury/NNP
yield/NN
curve/NN
resulting/VBG
from/IN
the/DT
better/JJR
performance/NN
of/IN
long-dated/JJ
issues/NNS
over/IN
short-dated/JJ
securities/NNS
hurt/VBP
major/JJ
coupons/NNS
because/IN
it/PRP
will/MD
become/VB
more/RBR
difficult/JJ
to/TO
structure/VB
new/JJ
derivative/JJ
securities/NNS
offerings/NNS
./.
Ginnie/NNP
Mae/NNP
9/CD
%/NN
securities/NNS
ended/VBD
at/IN
98/CD
6\/32/CD
,/,
up/IN
9\/32/CD
,/,
and/CC
Federal/NNP
Home/NNP
Loan/NNP
Mortgage/NNP
Corp./NNP
9/CD
%/NN
securities/NNS
were/VBD
at/IN
97/CD
10\/32/CD
,/,
up/RB
6\/32/CD
./.
The/DT
Ginnie/NNP
Mae/NNP
9/CD
%/NN
issue/NN
was/VBD
yielding/VBG
9.42/CD
%/NN
to/TO
a/DT
12-year/JJ
average/NN
life/NN
assumption/NN
,/,
as/IN
the/DT
spread/NN
above/IN
the/DT
Treasury/NNP
10-year/JJ
note/NN
widened/VBD
0.03/CD
percentage/NN
point/NN
to/TO
1.48/CD
./.
While/IN
Remic/NNP
issuance/NN
may/MD
slow/VB
in/IN
the/DT
coming/VBG
days/NNS
because/IN
of/IN
the/DT
shift/NN
in/IN
the/DT
Treasury/NNP
yield/NN
curve/NN
,/,
underwriters/NNS
continued/VBD
to/TO
crank/VB
out/RP
new/JJ
real/JJ
estate/NN
mortgage/NN
investment/NN
conduits/NNS
structured/VBN
when/WRB
the/DT
yield/NN
curve/NN
was/VBD
more/RBR
favorable/JJ
./.
Two/CD
new/JJ
Remics/NNS
totaling/VBG
$/$
900/CD
million/CD
were/VBD
announced/VBN
by/IN
Freddie/NNP
Mac/NNP
yesterday/NN
./.
Foreign/JJ
Bonds/NNS
British/JJ
government/NN
bonds/NNS
ended/VBD
little/RB
changed/VBN
as/IN
investors/NNS
awaited/VBD
an/DT
economic/JJ
policy/NN
address/NN
last/JJ
night/NN
by/IN
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
Nigel/NNP
Lawson/NNP
./.
The/DT
Treasury/NNP
11/CD
3\/4/CD
%/NN
bond/NN
due/RB
2003\/2007/CD
was/VBD
down/RB
2\/32/CD
at/IN
111/CD
29\/32/CD
to/TO
yield/VB
10.09/CD
%/NN
,/,
while/IN
the/DT
11/CD
3\/4/CD
%/NN
notes/NNS
due/JJ
1991/CD
were/VBD
unchanged/JJ
at/IN
98/CD
19\/32/CD
to/TO
yield/VB
12.94/CD
%/NN
./.
In/IN
Japan/NNP
,/,
the/DT
bellwether/NN
No./NN
111/CD
4.6/CD
%/NN
bond/NN
of/IN
1998/CD
ended/VBD
off/JJ
0.03/CD
at/IN
95.72/CD
,/,
to/TO
yield/VB
5.32/CD
%/NN
,/,
and/CC
in/IN
West/NNP
Germany/NNP
,/,
the/DT
7/CD
%/NN
benchmark/NN
issue/NN
due/JJ
October/NNP
1999/CD
ended/VBD
0.05/CD
point/NN
lower/RBR
at/IN
99.85/CD
to/TO
yield/VB
7.02/CD
%/NN
./.
THE/DT
PANHANDLER/NN
approaches/VBZ
,/,
makes/VBZ
his/PRP$
pitch/NN
./.
It/PRP
may/MD
be/VB
straightforward/JJ
--/:
he/PRP
wants/VBZ
money/NN
for/IN
food/NN
--/:
or/CC
incredibly/RB
convoluted/VBN
;/:
his/PRP$
sister/NN
is/VBZ
at/IN
this/DT
very/JJ
moment/NN
near/IN
death/NN
in/IN
Hoboken/NNP
,/,
he/PRP
has/VBZ
lost/VBN
his/PRP$
wallet/NN
and/CC
has/VBZ
only/RB
$/$
1.22/CD
in/IN
change/NN
to/TO
put/VB
toward/IN
a/DT
bus/NN
ticket/NN
costing/VBG
$/$
3.83/CD
,/,
and/CC
wo/MD
n't/RB
you/PRP
give/VB
him/PRP
the/DT
difference/NN
?/.
No/UH
?/.
Well/RB
,/,
how/WRB
about/IN
a/DT
loan/NN
,/,
he/PRP
'll/MD
take/VB
your/PRP$
name/NN
and/CC
address/NN
.../:
Figuring/VBG
that/DT
their/PRP$
money/NN
would/MD
more/RBR
likely/RB
go/VB
toward/IN
a/DT
bottle/NN
of/IN
Night/NNP
Train/NNP
Express/NNP
,/,
most/JJS
people/NNS
have/VBP
little/JJ
trouble/NN
saying/VBG
no/UH
to/TO
propositions/NNS
like/IN
this/DT
./.
But/CC
healthy/JJ
skepticism/NN
vanishes/VBZ
when/WRB
they/PRP
are/VBP
solicited/VBN
by/IN
an/DT
organized/VBN
charity/NN
to/TO
help/VB
fight/VB
cancer/NN
,/,
famine/NN
,/,
child/NN
abuse/NN
,/,
or/CC
what/WP
have/VBP
you/PRP
./.
Most/JJS
see/VBP
little/JJ
reason/NN
to/TO
doubt/VB
that/DT
their/PRP$
cash/NN
will/MD
go/VB
toward/IN
these/DT
noble/JJ
goals/NNS
./.
But/CC
will/MD
it/PRP
?/.
In/IN
a/DT
distressing/JJ
number/NN
of/IN
cases/NNS
,/,
no/UH
./.
In/IN
fact/NN
,/,
the/DT
donors/NNS
sometimes/RB
might/MD
be/VB
better/RB
off/RP
giving/VBG
the/DT
money/NN
to/TO
the/DT
panhandler/NN
:/:
at/IN
least/JJS
he/PRP
has/VBZ
no/DT
overhead/NN
,/,
and/CC
he/PRP
might/MD
even/RB
be/VB
telling/VBG
the/DT
truth/NN
./.
Last/JJ
year/NN
,/,
more/JJR
than/IN
$/$
100/CD
billion/CD
was/VBD
donated/VBN
to/TO
the/DT
nation/NN
's/POS
400,000/CD
charities/NNS
./.
While/IN
the/DT
vast/JJ
bulk/NN
of/IN
it/PRP
was/VBD
indeed/RB
spent/VBN
by/IN
reputable/JJ
organizations/NNS
on/IN
the/DT
good/JJ
works/NNS
it/PRP
was/VBD
raised/VBN
for/IN
,/,
it/PRP
's/VBZ
equally/RB
true/JJ
that/IN
a/DT
sizable/JJ
hunk/NN
was/VBD
consumed/VBN
in/IN
``/``
expenses/NNS
''/''
claimed/VBN
by/IN
other/JJ
operators/NNS
,/,
including/VBG
fraudulent/JJ
expenses/NNS
./.
In/IN
many/JJ
cases/NNS
the/DT
costs/NNS
claimed/VBN
were/VBD
so/RB
high/JJ
that/IN
only/RB
a/DT
dribble/NN
of/IN
cash/NN
was/VBD
left/VBN
for/IN
the/DT
purported/JJ
beneficiaries/NNS
./.
It/PRP
's/VBZ
impossible/JJ
to/TO
say/VB
exactly/RB
how/WRB
much/JJ
of/IN
the/DT
total/JJ
charity/NN
intake/NN
is/VBZ
devoured/VBN
by/IN
stratospheric/JJ
fund-raising/NN
costs/NNS
,/,
high-living/JJ
operators/NNS
,/,
and/CC
downright/JJ
fraud/NN
./.
But/CC
the/DT
problem/NN
clearly/RB
is/VBZ
widespread/JJ
and/CC
persistent/JJ
./.
State/NN
law/NN
enforcers/NNS
can/MD
barely/RB
keep/VB
up/RP
with/IN
charity/NN
scams/NNS
,/,
and/CC
reports/NNS
from/IN
watchdog/NN
groups/NNS
such/JJ
as/IN
the/DT
Council/NNP
of/IN
Better/NNP
Business/NNP
Bureaus/NNP
are/VBP
not/RB
encouraging/VBG
./.
The/DT
Philanthropic/NNP
Advisory/NNP
Service/NNP
of/IN
the/DT
BBB/NNP
reviews/VBZ
hundreds/NNS
of/IN
new/JJ
charities/NNS
every/DT
year/NN
,/,
measuring/VBG
them/PRP
against/IN
minimum/NN
standards/NNS
for/IN
accountability/NN
;/:
for/IN
accuracy/NN
and/CC
honesty/NN
in/IN
solicitation/NN
;/:
and/CC
for/IN
percentage/NN
of/IN
funds/NNS
actually/RB
going/VBG
to/TO
work/VB
for/IN
which/WDT
the/DT
charity/NN
was/VBD
supposedly/RB
established/VBN
./.
The/DT
Service/NNP
figures/VBZ
at/IN
least/JJS
half/NN
of/IN
the/DT
money/NN
taken/VBN
in/RP
should/MD
be/VB
spent/VBN
on/IN
program/NN
./.
Roughly/RB
a/DT
third/JJ
of/IN
the/DT
charities/NNS
reviewed/VBN
flunk/VBP
the/DT
test/NN
./.
Which/WDT
,/,
it/PRP
should/MD
be/VB
added/VBN
,/,
does/VBZ
n't/RB
prevent/VB
the/DT
charities/NNS
from/IN
raking/VBG
in/IN
a/DT
lot/NN
of/IN
money/NN
anyway/RB
./.
Without/IN
a/DT
microscope/NN
and/CC
a/DT
subpoena/NN
,/,
it/PRP
's/VBZ
often/RB
hard/JJ
to/TO
sort/VB
out/RP
worthwhile/JJ
causes/NNS
from/IN
ripoffs/NNS
if/IN
all/DT
you/PRP
've/VBP
got/VBD
to/TO
go/VB
on/RP
is/VBZ
the/DT
solicitation/NN
itself/PRP
./.
On/IN
this/DT
basis/NN
,/,
``/``
there/EX
's/VBZ
no/DT
way/NN
the/DT
average/JJ
person/NN
can/MD
know/VB
a/DT
good/JJ
charity/NN
from/IN
a/DT
bad/JJ
one/CD
,/,
''/''
says/VBZ
David/NNP
Ormstedt/NNP
,/,
an/DT
assistant/JJ
attorney/NN
general/NN
in/IN
Connecticut/NNP
./.
``/``
A/DT
lot/NN
of/IN
donors/NNS
just/RB
get/VBP
taken/VBN
./.
''/''
Including/VBG
those/DT
,/,
he/PRP
contends/VBZ
,/,
who/WP
put/VBP
about/RB
$/$
1/CD
million/CD
into/IN
the/DT
kitty/NN
for/IN
the/DT
Connecticut/NNP
Association/NNP
of/IN
Concerned/NNP
Veterans/NNP
and/CC
the/DT
Vietnam/NNP
Veterans/NNP
Service/NNP
Center/NNP
./.
The/DT
state/NN
has/VBZ
sued/VBN
these/DT
charities/NNS
in/IN
state/NN
court/NN
,/,
complaining/VBG
that/IN
much/JJ
of/IN
the/DT
money/NN
was/VBD
grossly/RB
misspent/VBN
;/:
82/CD
%/NN
,/,
says/VBZ
Mr./NNP
Ormstedt/NNP
,/,
went/VBD
to/TO
fund/NN
raisers/NNS
and/CC
most/JJS
of/IN
the/DT
rest/NN
to/TO
the/DT
people/NNS
who/WP
ran/VBD
the/DT
charities/NNS
and/CC
to/TO
their/PRP$
relatives/NNS
--/:
for/IN
fur/NN
coats/NNS
,/,
trips/NNS
to/TO
Florida/NNP
,/,
Lucullan/JJ
restaurant/NN
tabs/NNS
./.
The/DT
telephone/NN
number/NN
for/IN
the/DT
charity/NN
in/IN
Shelton/NNP
,/,
Conn./NNP
,/,
has/VBZ
been/VBN
disconnected/VBN
,/,
and/CC
the/DT
former/JJ
officials/NNS
could/MD
n't/RB
be/VB
located/VBN
./.
Running/NN
a/DT
charity/NN
does/VBZ
cost/VB
money/NN
,/,
but/CC
reputable/JJ
organizations/NNS
manage/VBP
to/TO
get/VB
the/DT
lion/NN
's/POS
share/NN
of/IN
donations/NNS
out/RB
to/TO
where/WRB
they/PRP
are/VBP
really/RB
needed/VBN
./.
The/DT
Arthritis/NNP
Foundation/NNP
,/,
the/DT
American/NNP
Cancer/NNP
Society/NNP
and/CC
the/DT
United/NNP
Way/NNP
of/IN
America/NNP
all/DT
say/VBP
that/IN
they/PRP
spend/VBP
roughly/RB
90/CD
%/NN
of/IN
their/PRP$
income/NN
on/IN
programs/NNS
,/,
not/RB
overhead/NN
./.
With/IN
some/DT
other/JJ
charities/NNS
,/,
however/RB
,/,
it/PRP
s/VBZ
the/DT
other/JJ
way/NN
around/RP
./.
The/DT
fledgling/JJ
National/NNP
Children/NNP
's/POS
Cancer/NNP
Society/NNP
,/,
for/IN
example/NN
,/,
took/VBD
in/IN
$/$
2.5/CD
million/CD
last/JJ
year/NN
to/TO
finance/VB
bone-marrow/NN
transplants/NNS
for/IN
children/NNS
./.
By/IN
the/DT
time/NN
it/PRP
paid/VBD
its/PRP$
expenses/NNS
it/PRP
only/RB
had/VBD
$/$
120,000/CD
left/VBN
--/:
not/RB
enough/JJ
to/TO
treat/VB
even/RB
one/CD
child/NN
./.
The/DT
state/NN
of/IN
Illinois/NNP
is/VBZ
suing/VBG
the/DT
charity/NN
for/IN
fraud/NN
in/IN
Chicago/NNP
,/,
along/IN
with/IN
Telesystems/NNP
Marketing/NNP
Inc./NNP
,/,
its/PRP$
Houston-based/JJ
fund/NN
raiser/NN
./.
Both/DT
deny/VBP
wrongdoing/NN
./.
The/DT
charity/NN
admits/VBZ
spending/VBG
a/DT
lot/NN
on/IN
fund/NN
raising/NN
,/,
but/CC
says/VBZ
that/DT
was/VBD
necessary/JJ
to/TO
establish/VB
a/DT
donor/NN
base/NN
it/PRP
can/MD
tap/VB
at/IN
much/RB
lower/JJR
cost/NN
in/IN
years/NNS
to/TO
come/VB
./.
Michael/NNP
Burns/NNP
,/,
president/NN
of/IN
Telesystems/NNS
,/,
says/VBZ
his/PRP$
concern/NN
has/VBZ
only/RB
benefited/VBN
from/IN
the/DT
publicity/NN
surrounding/VBG
the/DT
case/NN
,/,
noting/VBG
that/IN
three/CD
other/JJ
charities/NNS
have/VBP
signed/VBN
on/RP
as/IN
clients/NNS
because/IN
they/PRP
were/VBD
impressed/VBN
with/IN
the/DT
amount/NN
he/PRP
raised/VBD
for/IN
National/NNP
Children/NNP
's/POS
./.
Meanwhile/RB
,/,
a/DT
state/NN
court/NN
judge/NN
has/VBZ
allowed/VBN
the/DT
charity/NN
to/TO
go/VB
on/RB
soliciting/VBG
funds/NNS
./.
Enforcers/NNS
ca/MD
n't/RB
put/VB
charities/NNS
out/IN
of/IN
business/NN
simply/RB
because/IN
they/PRP
spend/VBP
the/DT
lion/NN
's/POS
share/NN
of/IN
their/PRP$
income/NN
on/IN
fund/NN
raising/NN
./.
State/NN
laws/NNS
previously/RB
used/VBN
as/IN
a/DT
yardstick/NN
minimum/NN
percentages/NNS
of/IN
income/NN
--/:
usually/RB
half/NN
--/:
that/WDT
had/VBD
to/TO
be/VB
spent/VBN
on/IN
the/DT
program/NN
rather/RB
than/IN
overhead/RB
,/,
but/CC
these/DT
the/DT
U.S./NNP
Supreme/NNP
Court/NNP
./.
It/PRP
has/VBZ
ruled/VBN
that/IN
such/JJ
laws/NNS
might/MD
work/VB
to/TO
stifle/VB
fund/NN
raising/NN
,/,
which/WDT
would/MD
amount/VB
to/TO
limiting/VBG
the/DT
charities/NNS
'/POS
first-amendment/JJ
right/NN
to/TO
freedom/NN
of/IN
expression/NN
./.
This/DT
puts/VBZ
upon/IN
enforcers/NNS
the/DT
burden/NN
of/IN
proving/VBG
outright/JJ
fraud/NN
or/CC
misrepresentation/NN
,/,
and/CC
such/JJ
actions/NNS
have/VBP
been/VBN
brought/VBN
against/IN
hundreds/NNS
of/IN
charities/NNS
recently/RB
./.
The/DT
attorney/NN
general/NN
's/POS
office/NN
in/IN
Connecticut/NNP
alone/RB
has/VBZ
put/VBN
seven/CD
of/IN
them/PRP
out/IN
of/IN
business/NN
over/IN
the/DT
past/JJ
couple/NN
of/IN
years/NNS
,/,
and/CC
the/DT
enforcement/NN
drive/NN
is/VBZ
continuing/VBG
there/RB
and/CC
elsewhere/RB
./.
In/IN
making/VBG
cases/NNS
,/,
the/DT
authorities/NNS
frequently/RB
zero/VBP
in/RP
on/IN
alleged/VBN
misrepresentations/NNS
made/VBN
by/IN
the/DT
charities/NNS
'/POS
fund/NN
raisers/NNS
./.
Illinois/NNP
,/,
for/IN
instance/NN
,/,
currently/RB
has/VBZ
under/IN
investigation/NN
10/CD
of/IN
the/DT
30/CD
companies/NNS
drumming/VBG
up/IN
funds/NNS
for/IN
charities/NNS
soliciting/VBG
there/RB
./.
Enforcers/NNS
pay/VBP
special/JJ
attention/NN
to/TO
operators/NNS
using/VBG
sweepstakes/NN
prizes/NNS
as/IN
an/DT
additional/JJ
inducement/NN
to/TO
give/VB
./.
Attorneys/NNS
general/JJ
in/IN
several/JJ
states/NNS
,/,
including/VBG
Illinois/NNP
,/,
are/VBP
already/RB
suing/VBG
Watson/NNP
&/CC
Hughey/NNP
Co./NNP
,/,
an/DT
Alexandria/NNP
,/,
Va.-based/JJ
outfit/NN
that/IN
they/PRP
say/VBP
has/VBZ
used/VBN
deceptive/JJ
sweepstakes/NN
ads/NNS
to/TO
solicit/VB
donations/NNS
for/IN
the/DT
American/NNP
Heart/NNP
Disease/NNP
Foundation/NNP
and/CC
the/DT
Cancer/NNP
Fund/NNP
of/IN
America/NNP
./.
According/VBG
to/TO
the/DT
Illinois/NNP
attorney/NN
general/NN
's/POS
suit/NN
,/,
Watson/NNP
&/CC
Hughey/NNP
sent/VBD
mailings/NNS
indicating/VBG
that/IN
recipients/NNS
were/VBD
guaranteed/VBN
cash/NN
prizes/NNS
,/,
and/CC
could/MD
win/VB
up/IN
to/TO
an/DT
additional/JJ
$/$
1,000/CD
on/IN
top/NN
of/IN
them/PRP
,/,
if/IN
they/PRP
contributed/VBD
as/RB
little/JJ
as/IN
$/$
7/CD
./.
But/CC
the/DT
total/JJ
value/NN
of/IN
the/DT
prizes/NNS
was/VBD
only/RB
$/$
5,000/CD
and/CC
most/JJS
``/``
winners/NNS
''/''
will/MD
receive/VB
just/RB
10/CD
cents/NNS
,/,
according/VBG
to/TO
the/DT
attorney/NN
general/NN
's/POS
office/NN
./.
The/DT
suit/NN
is/VBZ
still/RB
pending/VBG
in/IN
Illinois/NNP
state/NN
court/NN
./.
Watson/NNP
&/CC
Hughey/NNP
has/VBZ
denied/VBN
the/DT
allegations/NNS
in/IN
court/NN
;/:
officials/NNS
decline/VBP
to/TO
comment/VB
further/RBR
./.
While/IN
they/PRP
can/MD
target/VB
some/DT
of/IN
the/DT
most/RBS
obvious/JJ
miscreants/NNS
,/,
enforcers/NNS
concede/VBP
that/IN
they/PRP
are/VBP
only/RB
scratching/VBG
the/DT
surface/NN
./.
There/EX
are/VBP
so/RB
many/JJ
cunning/JJ
ploys/NNS
used/VBN
by/IN
so/RB
many/JJ
dubious/JJ
operators/NNS
,/,
they/PRP
say/VBP
,/,
that/IN
it/PRP
is/VBZ
probably/RB
impossible/JJ
to/TO
stop/VB
them/PRP
all/DT
./.
One/CD
maneuver/NN
:/:
the/DT
``/``
public/JJ
education/NN
''/''
gambit/NN
./.
The/DT
solicitation/NN
material/NN
indicates/VBZ
that/IN
donations/NNS
will/MD
go/VB
toward/IN
a/DT
campaign/NN
alerting/VBG
and/CC
informing/VBG
the/DT
public/NN
about/IN
some/DT
health/NN
or/CC
other/JJ
issue/NN
./.
What/WP
it/PRP
does/VBZ
n't/RB
say/VB
is/VBZ
that/IN
the/DT
entire/NN
``/``
campaign/NN
''/''
may/MD
be/VB
the/DT
fund-raising/JJ
letter/NN
itself/PRP
./.
``/``
All/DT
too/RB
often/RB
this/DT
will/MD
merely/RB
be/VB
a/DT
statement/NN
on/IN
the/DT
solicitation/NN
such/JJ
as/IN
,/,
`/``
Do/VBP
n't/RB
smoke/VB
!/.
'/''
or/CC
`/``
Wear/VB
suntan/NN
lotion/NN
,/,
'/''
``/``
says/VBZ
William/NNP
Webster/NNP
,/,
attorney/NN
general/NN
of/IN
Missouri/NNP
./.
``/``
By/IN
putting/VBG
these/DT
pithy/JJ
statements/NNS
on/IN
the/DT
solicitations/NNS
,/,
hundreds/NNS
of/IN
thousands/NNS
of/IN
dollars/NNS
are/VBP
claimed/VBN
to/TO
have/VB
been/VBN
spent/VBN
on/IN
education/NN
to/TO
consumers/NNS
when/WRB
in/IN
fact/NN
this/DT
represents/VBZ
the/DT
costs/NNS
of/IN
sending/VBG
the/DT
newsletters/NNS
./.
''/''
Mr./NNP
Webster/NNP
cites/VBZ
a/DT
four-page/JJ
mailing/NN
from/IN
the/DT
United/NNP
Cancer/NNP
Council/NNP
that/WDT
offers/VBZ
a/DT
chance/NN
to/TO
win/VB
$/$
5,000/CD
in/IN
gold/JJ
bullion/NN
to/TO
those/DT
giving/VBG
as/RB
little/JJ
as/IN
$/$
5/CD
to/TO
cancer/NN
education/NN
./.
``/``
A/DT
few/JJ
boilerplate/NN
warnings/NNS
about/IN
cancer/NN
appear/VBP
but/CC
that/DT
's/VBZ
only/RB
two/CD
inches/NNS
in/IN
all/DT
four/CD
pages/NNS
./.
I/PRP
think/VBP
some/DT
people/NNS
may/MD
believe/VB
they/PRP
're/VBP
helping/VBG
fund/VB
a/DT
massive/JJ
TV/NN
and/CC
print/NN
campaign/NN
,/,
but/CC
we/PRP
could/MD
n't/RB
find/VB
that/IN
the/DT
charity/NN
does/VBZ
anything/NN
except/IN
write/VB
these/DT
letters/NNS
,/,
''/''
he/PRP
says/VBZ
./.
Officials/NNS
at/IN
the/DT
Washington/NNP
D.C.-based/JJ
charity/NN
did/VBD
n't/RB
return/VB
repeated/VBN
phone/NN
calls/NNS
./.
Many/JJ
fly-by-night/JJ
charities/NNS
ride/VBP
the/DT
coattails/NNS
of/IN
the/DT
biggest/JJS
,/,
best-known/JJ
and/CC
most/RBS
reputable/JJ
ones/NNS
by/IN
adopting/VBG
names/NNS
similar/JJ
to/TO
theirs/JJ
./.
The/DT
established/VBN
charities/NNS
are/VBP
bothered/VBN
by/IN
this/DT
but/CC
say/VBP
they/PRP
can/MD
do/VB
little/RB
about/IN
it/PRP
./.
``/``
We/PRP
ca/MD
n't/RB
police/VB
the/DT
many/JJ
organizations/NNS
that/WDT
have/VBP
sprung/VBN
up/RP
in/IN
the/DT
last/JJ
few/JJ
years/NNS
using/VBG
part/NN
of/IN
our/PRP$
name/NN
./.
Most/JJS
of/IN
them/PRP
do/VBP
n't/RB
last/VB
for/IN
long/JJ
,/,
but/CC
in/IN
the/DT
meantime/NN
all/DT
we/PRP
can/MD
do/VB
is/VBZ
tell/VB
people/NNS
they/PRP
are/VBP
n't/RB
connected/VBN
with/IN
us/PRP
,/,
''/''
says/VBZ
a/DT
spokeswoman/NN
for/IN
the/DT
American/NNP
Heart/NNP
Association/NNP
./.
And/CC
sometimes/RB
a/DT
reputable/JJ
charity/NN
with/IN
a/DT
household/NN
name/NN
gets/VBZ
used/VBN
and/CC
does/VBZ
n't/RB
even/RB
know/VB
it/PRP
./.
A/DT
couple/NN
in/IN
Rockford/NNP
,/,
Ill./NNP
,/,
raised/VBD
$/$
12,591/CD
earlier/RBR
this/DT
year/NN
using/VBG
the/DT
name/NN
and/CC
logo/NN
of/IN
Mothers/NNP
Against/IN
Drunk/NNP
Driving/NNP
,/,
without/IN
permission/NN
from/IN
the/DT
group/NN
./.
MADD/NNP
did/VBD
n't/RB
learn/VB
of/IN
the/DT
fund/NN
raising/NN
until/IN
the/DT
couple/NN
sent/VBD
it/PRP
a/DT
check/NN
for/IN
$/$
613/CD
,/,
along/IN
with/IN
a/DT
letter/NN
saying/VBG
that/DT
was/VBD
the/DT
charity/NN
's/POS
``/``
share/NN
./.
''/''
The/DT
Illinois/NNP
Attorney/NNP
General/NNP
won/VBD
a/DT
court/NN
order/NN
to/TO
prevent/VB
the/DT
couple/NN
from/IN
raising/VBG
further/JJ
funds/NNS
without/IN
MADD/NNP
's/POS
permission/NN
./.
The/DT
couple/NN
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
and/CC
apparently/RB
have/VB
left/VBN
Rockford/NNP
,/,
law/NN
enforcement/NN
officials/NNS
report/VBP
./.
Denise/NNP
McDonald/NNP
,/,
a/DT
spokeswoman/NN
for/IN
MADD/NNP
,/,
says/VBZ
,/,
``/``
It/PRP
's/VBZ
scary/JJ
,/,
because/IN
anybody/NN
could/MD
do/VB
this/NN
./.
''/''
Mr./NNP
Johnson/NNP
is/VBZ
a/DT
staff/NN
reporter/NN
in/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
's/POS
Chicago/NNP
bureau/NN
./.
Overhead/NN
costs/NNS
at/IN
some/DT
of/IN
the/DT
largest/JJS
charities/NNS
,/,
in/IN
millions/NNS
of/IN
dollars/NNS
Source/NN
:/:
The/DT
NonProfit/NNP
Times/NNP
British/NNP
Airways/NNP
PLC/NNP
,/,
a/DT
crucial/JJ
participant/NN
in/IN
the/DT
proposed/VBN
buy-out/NN
of/IN
UAL/NNP
Corp./NNP
,/,
washed/VBD
its/PRP$
hands/NNS
of/IN
the/DT
current/JJ
efforts/NNS
to/TO
revive/VB
a/DT
bid/NN
for/IN
the/DT
parent/NN
of/IN
United/NNP
Airlines/NNP
./.
Specifically/RB
,/,
the/DT
British/JJ
carrier/NN
said/VBD
it/PRP
currently/RB
has/VBZ
no/DT
plans/NNS
to/TO
participate/VB
in/IN
any/DT
new/JJ
offer/NN
for/IN
UAL/NNP
./.
In/IN
addition/NN
,/,
British/NNP
Air/NNP
officially/RB
withdrew/VBD
its/PRP$
support/NN
for/IN
the/DT
previous/JJ
$/$
300-a-share/JJ
bid/NN
in/IN
a/DT
terse/JJ
statement/NN
that/WDT
said/VBD
``/``
the/DT
original/JJ
deal/NN
is/VBZ
closed/VBN
./.
''/''
Company/NN
officials/NNS
said/VBD
later/RBR
that/IN
British/NNP
Airways/NNP
believes/VBZ
its/PRP$
involvement/NN
in/IN
the/DT
UAL/NNP
buy-out/NN
ended/VBD
last/JJ
Friday/NNP
when/WRB
the/DT
buy-out/NN
group/NN
,/,
which/WDT
also/RB
includes/VBZ
UAL/NNP
's/POS
management/NN
and/CC
pilot/NN
union/NN
,/,
failed/VBD
to/TO
obtain/VB
financing/NN
for/IN
the/DT
$/$
6.79/CD
billion/CD
transaction/NN
./.
The/DT
carrier/NN
stopped/VBD
short/RB
of/IN
saying/VBG
it/PRP
would/MD
n't/RB
at/IN
some/DT
point/NN
reconsider/VB
participating/VBG
in/IN
any/DT
new/JJ
bid/NN
for/IN
UAL/NNP
./.
However/RB
,/,
company/NN
officials/NNS
said/VBD
they/PRP
plan/VBP
to/TO
take/VB
``/``
no/DT
initiatives/NNS
''/''
to/TO
resurrect/VB
the/DT
transaction/NN
,/,
and/CC
``/``
are/VBP
n't/RB
aware/JJ
''/''
of/IN
any/DT
restructured/VBN
bid/NN
in/IN
the/DT
making/NN
./.
Collectively/RB
,/,
the/DT
statements/NNS
raised/VBD
questions/NNS
about/IN
whether/IN
a/DT
new/JJ
bid/NN
for/IN
UAL/NNP
will/MD
ever/RB
get/VB
off/IN
the/DT
ground/NN
./.
The/DT
transaction/NN
has/VBZ
had/VBD
a/DT
series/NN
of/IN
setbacks/NNS
since/IN
the/DT
financing/VBG
problems/NNS
became/VBD
known/VBN
last/JJ
Friday/NNP
,/,
with/IN
no/DT
signs/NNS
or/CC
statements/NNS
from/IN
the/DT
buy-out/JJ
group/NN
to/TO
indicate/VB
that/IN
any/DT
progress/NN
has/VBZ
taken/VBN
place/NN
./.
However/RB
,/,
in/IN
response/NN
to/TO
the/DT
British/NNP
Air/NNP
decision/NN
,/,
United/VBN
's/POS
pilot/NN
union/NN
vowed/VBD
to/TO
continue/VB
efforts/NNS
to/TO
revive/VB
the/DT
buy-out/NN
./.
Pilot/NN
union/NN
Chairman/NNP
Frederick/NNP
C./NNP
Dubinsky/NNP
said/VBD
advisers/NNS
to/TO
UAL/NNP
management/NN
and/CC
the/DT
union/NN
will/MD
begin/VB
meeting/VBG
in/IN
New/NNP
York/NNP
today/NN
and/CC
will/MD
work/VB
through/IN
the/DT
weekend/NN
to/TO
devise/VB
a/DT
new/JJ
proposal/NN
to/TO
present/VB
to/TO
UAL/NNP
's/POS
board/NN
``/``
at/IN
the/DT
earliest/JJS
time/NN
possible/JJ
./.
''/''
Pilot/NN
union/NN
advisers/NNS
appeared/VBD
confident/JJ
that/IN
a/DT
new/JJ
bid/NN
could/MD
go/VB
forward/RB
even/RB
without/IN
British/NNP
Air/NNP
's/POS
participation/NN
./.
UAL/NNP
declined/VBD
to/TO
comment/VB
on/IN
British/NNP
Air/NNP
's/POS
statement/NN
./.
UAL/NNP
Chairman/NNP
Stephen/NNP
M./NNP
Wolf/NNP
,/,
who/WP
is/VBZ
leading/VBG
the/DT
management/NN
end/NN
of/IN
the/DT
buy-out/NN
,/,
has/VBZ
n't/RB
provided/VBN
investors/NNS
with/IN
any/DT
assurances/NNS
about/IN
the/DT
prospect/NN
of/IN
a/DT
new/JJ
deal/NN
./.
In/IN
another/DT
setback/NN
yesterday/NN
,/,
United/VBN
's/POS
machinist/NN
union/NN
asked/VBD
the/DT
Treasury/NNP
Department/NNP
to/TO
investigate/VB
whether/IN
certain/JJ
aspects/NNS
of/IN
the/DT
original/JJ
buy-out/NN
proposal/NN
violated/VBD
tax/NN
laws/NNS
./.
In/IN
an/DT
effort/NN
to/TO
derail/VB
the/DT
buy-out/NN
,/,
the/DT
union/NN
has/VBZ
already/RB
called/VBN
for/IN
investigations/NNS
by/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
,/,
Transportation/NNP
Department/NNP
and/CC
Labor/NNP
Department/NNP
./.
But/CC
there/EX
was/VBD
one/CD
bright/JJ
spot/NN
yesterday/NN
./.
The/DT
United/NNP
flight-attendants/NNS
union/NN
agreed/VBD
to/TO
negotiations/NNS
that/WDT
could/MD
lead/VB
to/TO
the/DT
flight/NN
attendants/NNS
contributing/VBG
concessions/NNS
to/TO
a/DT
revived/VBN
bid/NN
in/IN
exchange/NN
for/IN
an/DT
ownership/NN
stake/NN
./.
The/DT
pilot/NN
union/NN
,/,
the/DT
only/JJ
one/CD
to/TO
support/VB
the/DT
buy-out/NN
thus/RB
far/RB
,/,
said/VBD
the/DT
flight/NN
attendants/NNS
'/POS
decision/NN
``/``
enforces/VBZ
our/PRP$
belief/NN
that/IN
an/DT
all-employee/JJ
owned/VBN
airline/NN
is/VBZ
practical/JJ
and/CC
achievable/JJ
./.
''/''
Still/RB
,/,
without/IN
the/DT
assurance/NN
of/IN
British/NNP
Airways/NNP
'/POS
financial/JJ
backing/NN
,/,
it/PRP
will/MD
be/VB
tougher/JJR
for/IN
the/DT
buy-out/NN
group/NN
to/TO
convince/VB
already-reluctant/JJ
banks/NNS
to/TO
make/VB
loan/NN
commitments/NNS
for/IN
a/DT
revised/VBN
bid/NN
,/,
especially/RB
since/IN
British/NNP
Air/NNP
's/POS
original/JJ
investment/NN
represented/VBN
78/CD
%/NN
of/IN
the/DT
cash/NN
equity/NN
contribution/NN
for/IN
the/DT
bid/NN
./.
Under/IN
the/DT
previous/JJ
plan/NN
,/,
British/NNP
Air/NNP
would/MD
have/VB
received/VBN
a/DT
15/CD
%/NN
stake/NN
in/IN
UAL/NNP
in/IN
exchange/NN
for/IN
a/DT
$/$
750/CD
million/CD
equity/NN
investment/NN
,/,
with/IN
a/DT
75/CD
%/NN
stake/NN
going/VBG
to/TO
UAL/NNP
employees/NNS
and/CC
10/CD
%/NN
to/TO
UAL/NNP
management/NN
./.
British/NNP
Air/NNP
officials/NNS
said/VBD
the/DT
airline/NN
's/POS
chairman/NN
,/,
Lord/NNP
King/NNP
,/,
was/VBD
concerned/VBN
about/IN
news/NN
reports/NNS
indicating/VBG
that/IN
British/NNP
Air/NNP
might/MD
be/VB
willing/JJ
to/TO
participate/VB
in/IN
a/DT
bid/NN
that/WDT
included/VBD
a/DT
lower/JJR
purchase/NN
price/NN
and/CC
better/JJR
investment/NN
terms/NNS
for/IN
the/DT
British/JJ
carrier/NN
./.
The/DT
previous/JJ
reports/NNS
were/VBD
based/VBN
on/IN
remarks/NNS
by/IN
British/NNP
Air/NNP
's/POS
chief/JJ
financial/JJ
officer/NN
,/,
Derek/NNP
Stevens/NNP
,/,
who/WP
said/VBD
any/DT
revised/VBN
bid/NN
would/MD
have/VB
to/TO
include/VB
a/DT
lower/JJR
purchase/NN
price/NN
to/TO
reflect/VB
the/DT
sharp/JJ
drop/NN
in/IN
UAL/NNP
's/POS
stock/NN
in/IN
the/DT
past/NN
week/NN
./.
UAL/NNP
stock/NN
dropped/VBD
$/$
1.625/CD
yesterday/NN
to/TO
$/$
190.125/CD
on/IN
volume/NN
of/IN
923,500/CD
shares/NNS
in/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
UAL/NNP
declined/VBD
to/TO
comment/VB
on/IN
British/NNP
Air/NNP
's/POS
statement/NN
./.
In/IN
an/DT
interview/NN
Wednesday/NNP
with/IN
Dow/NNP
Jones/NNP
Professional/NNP
Investor/NNP
Report/NNP
,/,
Mr./NNP
Stevens/NNP
said/VBD
,/,
``/``
We/PRP
're/VBP
in/IN
no/DT
way/NN
committed/VBN
to/TO
a/DT
deal/NN
going/VBG
through/RP
at/IN
all/DT
./.
We/PRP
're/VBP
not/RB
rushing/VBG
into/IN
anything/NN
./.
We/PRP
do/VBP
n't/RB
want/VB
to/TO
be/VB
party/NN
to/TO
a/DT
second/JJ
rejection/NN
./.
''/''
Indeed/RB
,/,
British/NNP
Air/NNP
seemed/VBD
to/TO
be/VB
distancing/VBG
itself/PRP
from/IN
the/DT
troubled/VBN
transaction/NN
early/RB
in/IN
an/DT
effort/NN
to/TO
avoid/VB
any/DT
further/JJ
embarrassment/NN
./.
The/DT
original/JJ
transaction/NN
fell/VBD
through/RP
on/IN
the/DT
same/JJ
day/NN
British/NNP
Air/NNP
shareholders/NNS
approved/VBD
the/DT
plan/NN
at/IN
a/DT
special/JJ
meeting/NN
after/IN
the/DT
British/NNP
succeeded/VBD
in/IN
arranging/VBG
the/DT
financing/NN
for/IN
its/PRP$
equity/NN
contribution/NN
./.
The/DT
carrier/NN
also/RB
seemed/VBD
eager/JJ
to/TO
place/VB
blame/NN
on/IN
its/PRP$
American/JJ
counterparts/NNS
./.
``/``
The/DT
buy-out/NN
consortium/NN
ceased/VBD
to/TO
exist/VB
because/IN
our/PRP$
American/JJ
partners/NNS
were/VBD
not/RB
capable/JJ
of/IN
organizing/VBG
the/DT
financing/NN
,/,
''/''
a/DT
British/NNP
Air/NNP
spokesman/NN
said/VBD
./.
British/NNP
Airways/NNP
may/MD
have/VBP
begun/VBN
to/TO
have/VB
second/JJ
thoughts/NNS
about/IN
the/DT
transaction/NN
after/IN
the/DT
Transportation/NNP
Department/NNP
forced/VBD
Northwest/NNP
's/POS
Airlines/NNP
'/POS
new/JJ
owners/NNS
to/TO
restructure/NN
the/DT
equity/NN
contribution/NN
of/IN
KLM/NNP
Royal/NNP
Dutch/NNP
Airlines/NNP
in/IN
that/DT
carrier/NN
./.
Most/JJS
of/IN
the/DT
department/NN
's/POS
statements/NNS
since/IN
the/DT
Northwest/NNP
transaction/NN
indicated/VBD
it/PRP
planned/VBD
to/TO
curtail/VB
foreign/JJ
ownership/NN
stakes/NNS
in/IN
U.S./NNP
carriers/NNS
./.
Even/RB
before/IN
British/NNP
Air/NNP
's/POS
announcement/NN
,/,
pilot/NN
union/NN
leaders/NNS
had/VBD
been/VBN
meeting/VBG
in/IN
Chicago/NNP
yesterday/NN
to/TO
consider/VB
their/PRP$
options/NNS
./.
The/DT
leaders/NNS
expressed/VBD
support/NN
for/IN
trying/VBG
to/TO
revive/VB
the/DT
bid/NN
following/VBG
a/DT
briefing/NN
Wednesday/NNP
by/IN
the/DT
union/NN
's/POS
advisers/NNS
,/,
Lazard/NNP
Freres/NNP
&/CC
Co./NNP
and/CC
Paul/NNP
,/,
Weiss/NNP
,/,
Rifkind/NNP
Wharton/NNP
&/CC
Garrison/NNP
./.
They/PRP
also/RB
unanimously/RB
re-elected/VBD
Mr./NNP
Dubinsky/NNP
,/,
the/DT
union/NN
chairman/NN
who/WP
has/VBZ
led/VBN
the/DT
pilots/NNS
'/POS
2/CD
1\/2-year/CD
fight/NN
to/TO
take/VB
control/NN
of/IN
the/DT
airline/NN
./.
UAL/NNP
's/POS
advisers/NNS
have/VBP
indicated/VBN
previously/RB
that/IN
it/PRP
may/MD
take/VB
a/DT
while/NN
to/TO
come/VB
forward/RB
with/IN
a/DT
revised/VBN
plan/NN
since/IN
they/PRP
want/VBP
to/TO
have/VB
firm/JJ
bank/NN
commitments/NNS
before/IN
launching/VBG
a/DT
new/JJ
bid/NN
./.
They/PRP
have/VBP
maintained/VBN
that/IN
banks/NNS
remain/VBP
interested/JJ
in/IN
financing/NN
the/DT
transaction/NN
./.
The/DT
buy-out/NN
fell/VBD
through/RP
after/IN
Citicorp/NNP
and/CC
Chase/NNP
Manhattan/NNP
Corp./NNP
,/,
the/DT
lead/JJ
banks/NNS
in/IN
the/DT
transaction/NN
,/,
failed/VBD
to/TO
obtain/VB
$/$
7.2/CD
billion/CD
in/IN
financing/NN
needed/VBN
for/IN
the/DT
plan/NN
./.
Italy/NNP
's/POS
industrial/JJ
wholesale/JJ
sales/NNS
index/NN
rose/VBD
13.2/CD
%/NN
in/IN
June/NNP
from/IN
a/DT
year/NN
earlier/RBR
,/,
the/DT
state/NN
statistical/JJ
institute/NN
Istat/NNP
said/VBD
./.
The/DT
June/NNP
increase/NN
compared/VBN
with/IN
a/DT
rise/NN
of/IN
10.5/CD
%/NN
in/IN
May/NNP
from/IN
a/DT
year/NN
earlier/RBR
./.
Domestic/JJ
wholesale/JJ
sales/NNS
rose/VBD
11.9/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
,/,
while/IN
foreign/JJ
sales/NNS
jumped/VBD
17.3/CD
%/NN
,/,
Istat/NNP
said/VBD
./.
For/IN
the/DT
first/JJ
six/CD
months/NNS
,/,
wholesale/JJ
sales/NNS
rose/VBD
12.3/CD
%/NN
from/IN
the/DT
year/NN
before/RP
,/,
reflecting/VBG
to/TO
a/DT
11.5/CD
%/NN
jump/NN
in/IN
domestic/JJ
sales/NNS
and/CC
a/DT
14.6/CD
%/NN
boost/NN
in/IN
foreign/JJ
sales/NNS
./.
Sales/NNS
of/IN
capital/NN
goods/NNS
to/TO
foreign/JJ
and/CC
domestic/JJ
destinations/NNS
increased/VBD
16.6/CD
%/NN
in/IN
the/DT
January-June/JJ
period/NN
from/IN
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
of/IN
consumer/NN
goods/NNS
rose/VBD
6.9/CD
%/NN
in/IN
the/DT
same/JJ
period/NN
,/,
while/IN
sales/NNS
of/IN
intermediate/JJ
goods/NNS
were/VBD
up/RB
13.8/CD
%/NN
from/IN
a/DT
year/NN
ago/RB
./.
Senate/NNP
Democrats/NNS
favoring/VBG
a/DT
cut/NN
in/IN
the/DT
capital-gains/NNS
tax/NN
have/VBP
decided/VBN
,/,
under/IN
pressure/NN
from/IN
their/PRP$
leaders/NNS
,/,
not/RB
to/TO
offer/VB
their/PRP$
own/JJ
proposal/NN
,/,
placing/VBG
another/DT
obstacle/NN
in/IN
the/DT
path/NN
of/IN
President/NNP
Bush/NNP
's/POS
legislative/JJ
priority/NN
./.
A/DT
core/NN
group/NN
of/IN
six/CD
or/CC
so/RB
Democratic/JJ
senators/NNS
has/VBZ
been/VBN
working/VBG
behind/IN
the/DT
scenes/NNS
to/TO
develop/VB
a/DT
proposal/NN
to/TO
reduce/VB
the/DT
tax/NN
on/IN
the/DT
gain/NN
from/IN
the/DT
sale/NN
of/IN
assets/NNS
./.
The/DT
plan/NN
was/VBD
complete/JJ
except/IN
for/IN
finishing/VBG
touches/NNS
,/,
and/CC
there/EX
was/VBD
talk/NN
that/IN
it/PRP
would/MD
be/VB
unveiled/VBN
as/RB
early/RB
as/IN
yesterday/NN
./.
But/CC
Senate/NNP
Majority/NNP
Leader/NNP
George/NNP
Mitchell/NNP
D./NNP
,/,
Maine/NNP
a/DT
vigorous/JJ
opponent/NN
of/IN
the/DT
capital-gains/NNS
tax/NN
cut/NN
,/,
called/VBD
the/DT
group/NN
to/TO
meet/VB
with/IN
him/PRP
Wednesday/NNP
night/NN
and/CC
again/RB
yesterday/NN
./.
Sen./NNP
Mitchell/NNP
urged/VBD
them/PRP
to/TO
desist/VB
./.
Afterward/RB
,/,
leaders/NNS
of/IN
the/DT
dissident/JJ
Democrats/NNS
relented/VBD
,/,
and/CC
said/VBD
they/PRP
would/MD
n't/RB
offer/VB
their/PRP$
own/JJ
proposal/NN
as/IN
they/PRP
had/VBD
planned/VBN
./.
The/DT
decision/NN
is/VBZ
a/DT
setback/NN
for/IN
President/NNP
Bush/NNP
,/,
who/WP
needs/VBZ
the/DT
support/NN
of/IN
Democrats/NNS
to/TO
pass/VB
the/DT
tax/NN
cut/NN
through/IN
the/DT
Democratic-controlled/JJ
Senate/NNP
./.
Having/VBG
a/DT
proposal/NN
sponsored/VBN
by/IN
Democrats/NNS
would/MD
have/VB
given/VBN
the/DT
president/NN
an/DT
advantage/NN
./.
Having/VBG
only/RB
a/DT
Republican/JJ
measure/NN
makes/VBZ
the/DT
task/NN
harder/RBR
./.
Still/RB
,/,
Sen./NNP
Bob/NNP
Packwood/NNP
R./NNP
,/,
Ore./NNP
the/DT
lead/JJ
sponsor/NN
of/IN
the/DT
Republican/JJ
capital-gains/NNS
amendment/NN
,/,
predicted/VBD
that/IN
the/DT
tax/NN
cut/NN
would/MD
be/VB
enacted/VBN
this/DT
year/NN
./.
He/PRP
said/VBD
a/DT
clear/JJ
majority/NN
of/IN
senators/NNS
back/VBP
the/DT
tax/NN
reduction/NN
and/CC
that/IN
ultimately/RB
there/EX
would/MD
be/VB
enough/JJ
senators/NNS
to/TO
overcome/VB
any/DT
procedural/JJ
hurdle/NN
the/DT
Democratic/JJ
leadership/NN
might/MD
erect/VB
./.
But/CC
Sen./NNP
Mitchell/NNP
,/,
buoyed/VBN
by/IN
his/PRP$
victory/NN
among/IN
fellow/JJ
Democrats/NNS
,/,
strongly/RB
disagreed/VBD
./.
Mr./NNP
Mitchell/NNP
has/VBZ
been/VBN
predicting/VBG
that/IN
the/DT
president/NN
's/POS
initiative/NN
would/MD
fail/VB
this/DT
year/NN
./.
Yesterday/NN
,/,
in/IN
an/DT
interview/NN
,/,
he/PRP
added/VBD
that/IN
the/DT
Democrats/NNS
'/POS
decision/NN
``/``
increases/VBZ
the/DT
likelihood/NN
that/IN
a/DT
capital-gains/NNS
tax/NN
cut/NN
will/MD
not/RB
pass/VB
this/DT
year/NN
./.
''/''
Mr./NNP
Mitchell/NNP
's/POS
first/JJ
victory/NN
came/VBD
last/JJ
week/NN
,/,
when/WRB
the/DT
Senate/NNP
passed/VBD
a/DT
deficit-reduction/JJ
bill/NN
that/WDT
did/VBD
n't/RB
contain/VB
a/DT
capital-gains/NNS
provision/NN
./.
That/DT
vote/NN
made/VBD
it/PRP
unlikely/JJ
that/IN
a/DT
capital-gains/NNS
tax/NN
cut/NN
would/MD
be/VB
included/VBN
in/IN
the/DT
final/JJ
bill/NN
,/,
now/RB
being/VBG
drafted/VBN
by/IN
House/NNP
and/CC
Senate/NNP
negotiators/NNS
./.
The/DT
House/NNP
version/NN
of/IN
the/DT
bill/NN
does/VBZ
include/VB
the/DT
tax/NN
cut/NN
./.
Now/RB
Republican/JJ
leaders/NNS
are/VBP
concentrating/VBG
on/IN
attaching/VBG
a/DT
capital-gains/NNS
amendment/NN
to/TO
some/DT
other/JJ
bill/NN
,/,
perhaps/RB
a/DT
measure/NN
raising/VBG
the/DT
federal/JJ
borrowing/NN
limit/NN
or/CC
a/DT
second/JJ
tax/NN
bill/NN
that/WDT
would/MD
follow/VB
on/IN
the/DT
heels/NNS
of/IN
the/DT
deficit-reduction/JJ
legislation/NN
./.
To/TO
help/VB
lay/VB
the/DT
groundwork/NN
for/IN
that/DT
fight/NN
,/,
President/NNP
Bush/NNP
plans/VBZ
early/JJ
next/JJ
week/NN
to/TO
meet/VB
at/IN
the/DT
White/NNP
House/NNP
with/IN
some/DT
20/CD
Democratic/JJ
senators/NNS
who/WP
favor/VBP
cutting/VBG
the/DT
capital-gains/NNS
tax/NN
or/CC
are/VBP
undecided/JJ
on/IN
the/DT
issue/NN
./.
The/DT
president/NN
apparently/RB
will/MD
have/VB
only/RB
one/CD
bill/NN
to/TO
push/VB
,/,
Sen./NNP
Packwood/NNP
's/POS
,/,
and/CC
at/IN
least/JJS
some/DT
of/IN
the/DT
dissident/JJ
Democrats/NNS
plan/VBP
to/TO
support/VB
it/PRP
./.
``/``
I/PRP
may/MD
want/VB
to/TO
offer/VB
additional/JJ
amendments/NNS
to/TO
improve/VB
it/PRP
when/WRB
the/DT
bill/NN
comes/VBZ
to/TO
the/DT
floor/NN
,/,
''/''
said/VBD
Sen./NNP
David/NNP
Boren/NNP
D./NNP
,/,
Okla./NNP
a/DT
leader/NN
of/IN
those/DT
Democrats/NNS
./.
The/DT
Packwood/NNP
plan/NN
,/,
as/IN
expected/VBN
,/,
would/MD
allow/VB
individuals/NNS
to/TO
exclude/VB
from/IN
income/NN
5/CD
%/NN
of/IN
the/DT
gain/NN
from/IN
the/DT
sale/NN
of/IN
a/DT
capital/NN
asset/NN
held/VBN
for/IN
more/JJR
than/IN
one/CD
year/NN
./.
The/DT
exclusion/NN
would/MD
rise/VB
five/CD
percentage/NN
points/NNS
for/IN
each/DT
year/NN
the/DT
asset/NN
was/VBD
held/VBN
,/,
until/IN
it/PRP
reached/VBD
a/DT
maximum/NN
of/IN
35/CD
%/NN
after/IN
seven/CD
years/NNS
./.
The/DT
exclusion/NN
would/MD
apply/VB
to/TO
assets/NNS
sold/VBN
after/IN
Oct./NNP
1/CD
./.
As/IN
an/DT
alternative/NN
,/,
taxpayers/NNS
could/MD
chose/VBD
to/TO
reduce/VB
their/PRP$
gains/NNS
by/IN
an/DT
inflation/NN
index/NN
./.
For/IN
corporations/NNS
,/,
the/DT
top/JJ
tax/NN
rate/NN
on/IN
the/DT
sale/NN
of/IN
assets/NNS
held/VBN
for/IN
more/JJR
than/IN
three/CD
years/NNS
would/MD
be/VB
cut/VBN
to/TO
33/CD
%/NN
from/IN
the/DT
current/JJ
top/NN
rate/NN
of/IN
34/CD
%/NN
./.
That/DT
rate/NN
would/MD
gradually/RB
decline/VB
to/TO
as/RB
little/JJ
as/IN
29/CD
%/NN
for/IN
corporate/JJ
assets/NNS
held/VBN
for/IN
15/CD
years/NNS
./.
The/DT
Packwood/NNP
plan/NN
also/RB
would/MD
include/VB
a/DT
proposal/NN
,/,
designed/VBN
by/IN
Sen./NNP
William/NNP
Roth/NNP
R./NNP
,/,
Del./NNP
that/WDT
would/MD
create/VB
new/JJ
tax/NN
benefits/NNS
for/IN
individual/JJ
retirement/NN
accounts/NNS
./.
The/DT
Roth/NNP
plan/NN
would/MD
create/VB
a/DT
new/JJ
,/,
non-deductible/JJ
IRA/NNP
from/IN
which/WDT
money/NN
could/MD
be/VB
withdrawn/VBN
tax-free/JJ
not/RB
only/JJ
for/IN
retirement/NN
,/,
but/CC
also/RB
for/IN
the/DT
purchase/NN
of/IN
a/DT
first/JJ
home/NN
,/,
education/NN
expenses/NNS
and/CC
medical/JJ
expenses/NNS
./.
Current/JJ
IRAs/NNS
could/MD
be/VB
rolled/VBN
over/RP
into/IN
the/DT
new/JJ
IRAs/NNS
,/,
but/CC
would/MD
be/VB
subject/JJ
to/TO
tax/NN
though/IN
no/DT
penalty/NN
./.
Westmoreland/NNP
Coal/NNP
Co./NNP
,/,
realizing/VBG
benefits/NNS
of/IN
a/DT
sustained/VBN
effort/NN
to/TO
cut/VB
costs/NNS
and/CC
boost/VB
productivity/NN
,/,
reported/VBD
sharply/RB
improved/VBN
third-quarter/JJ
results/NNS
./.
The/DT
producer/NN
and/CC
marketer/NN
of/IN
low-sulfur/JJ
coal/NN
said/VBD
net/JJ
income/NN
for/IN
the/DT
quarter/NN
was/VBD
$/$
5.9/CD
million/CD
,/,
or/CC
71/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
145.4/CD
million/CD
./.
For/IN
the/DT
year-earlier/JJ
period/NN
,/,
the/DT
company/NN
reported/VBD
a/DT
loss/NN
of/IN
$/$
520,000/CD
or/CC
six/CD
cents/NNS
a/DT
share/NN
./.
In/IN
the/DT
latest/JJS
nine/CD
months/NNS
,/,
the/DT
company/NN
earned/VBD
$/$
8.5/CD
million/CD
,/,
or/CC
$/$
1.03/CD
a/DT
share/NN
./.
Last/JJ
year/NN
's/POS
net/JJ
loss/NN
of/IN
$/$
3,524,000/CD
included/VBD
a/DT
benefit/NN
of/IN
$/$
1,640,000/CD
from/IN
an/DT
accounting/NN
change/NN
./.
Revenue/NN
for/IN
the/DT
nine/CD
months/NNS
rose/VBD
to/TO
$/$
449/CD
million/CD
from/IN
$/$
441.1/CD
million/CD
./.
In/IN
an/DT
interview/NN
,/,
Pemberton/NNP
Hutchinson/NNP
,/,
president/NN
and/CC
chief/JJ
executive/NN
,/,
cited/VBD
several/JJ
reasons/NNS
for/IN
the/DT
improvement/NN
:/:
higher/JJR
employee/NN
productivity/NN
and/CC
``/``
good/JJ
natural/NN
conditions/NNS
''/''
in/IN
the/DT
mines/NNS
,/,
as/RB
well/RB
as/IN
lower/JJR
costs/NNS
for/IN
materials/NNS
,/,
administrative/JJ
overhead/NN
and/CC
debt/NN
interest/NN
./.
In/IN
the/DT
latest/JJS
nine/CD
months/NNS
,/,
Mr./NNP
Hutchinson/NNP
said/VBD
,/,
total/JJ
coal/NN
sales/NNS
rose/VBD
to/TO
about/RB
14.6/CD
million/CD
tons/NNS
from/IN
about/RB
14.3/CD
million/CD
tons/NNS
a/DT
year/NN
earlier/RBR
./.
In/IN
addition/NN
,/,
long-term/JJ
debt/NN
has/VBZ
been/VBN
trimmed/RBR
to/TO
about/RB
$/$
72/CD
million/CD
from/IN
$/$
96/CD
million/CD
since/IN
Jan./NNP
1/CD
./.
He/PRP
predicted/VBD
the/DT
debt/NN
ratio/NN
will/MD
improve/VB
further/RBR
in/IN
coming/JJ
quarters/NNS
./.
Westmoreland/NNP
's/POS
strategy/NN
is/VBZ
to/TO
retain/VB
and/CC
expand/VB
its/PRP$
core/NN
business/NN
of/IN
mining/VBG
and/CC
selling/VBG
low-sulphur/JJ
coal/NN
in/IN
the/DT
Appalachia/NNP
region/NN
./.
The/DT
operating/NN
territory/NN
includes/VBZ
coal/NN
terminals/NNS
on/IN
the/DT
Ohio/NNP
River/NNP
and/CC
in/IN
Newport/NNP
News/NNP
,/,
Va/NNP
./.
Westmoreland/NNP
exports/VBZ
about/RB
a/DT
fourth/JJ
of/IN
its/PRP$
coal/NN
tonnage/NN
,/,
including/VBG
a/DT
significant/JJ
amount/NN
of/IN
metallurgical/JJ
coal/NN
produced/VBN
by/IN
others/NNS
that/WDT
is/VBZ
used/VBN
by/IN
steelmakers/NNS
overseas/RB
./.
For/IN
the/DT
past/JJ
couple/NN
of/IN
years/NNS
,/,
Westmoreland/NNP
has/VBZ
undertaken/VBN
an/DT
aggressive/JJ
streamlining/NN
of/IN
all/DT
aspects/NNS
of/IN
its/PRP$
business/NN
./.
Marginal/JJ
operations/NNS
and/CC
assets/NNS
have/VBP
been/VBN
sold/VBN
./.
The/DT
size/NN
of/IN
the/DT
company/NN
's/POS
board/NN
has/VBZ
been/VBN
reduced/VBN
to/TO
eight/CD
directors/NNS
from/IN
13/CD
./.
About/RB
140/CD
salaried/JJ
management/NN
jobs/NNS
and/CC
hundreds/NNS
of/IN
hourly/JJ
wage/NN
positions/NNS
have/VBP
been/VBN
eliminated/VBN
./.
Even/RB
perks/NNS
have/VBP
been/VBN
reduced/VBN
./.
For/IN
example/NN
,/,
the/DT
chief/JJ
executive/NN
himself/PRP
now/RB
pays/VBZ
20/CD
%/NN
of/IN
the/DT
cost/NN
of/IN
his/PRP$
health/NN
benefits/NNS
;/:
the/DT
company/NN
used/VBD
to/TO
pay/VB
100/CD
%/NN
./.
``/``
I/PRP
think/VBP
the/DT
ship/NN
is/VBZ
now/RB
righted/VBN
,/,
the/DT
bilges/NNS
are/VBP
pumped/VBN
and/CC
we/PRP
are/VBP
on/IN
course/NN
,/,
''/''
Mr./NNP
Hutchinson/NNP
said/VBD
of/IN
the/DT
restructuring/NN
program/NN
./.
``/``
Much/RB
of/IN
what/WP
we/PRP
set/VBD
out/RP
to/TO
do/VB
is/VBZ
completed/VBN
./.
''/''
But/CC
he/PRP
cautioned/VBD
that/DT
Westmoreland/NNP
's/POS
third/JJ
quarter/NN
is/VBZ
typically/RB
better/JJR
than/IN
the/DT
fourth/JJ
,/,
so/IN
investors/NNS
``/``
should/MD
n't/RB
just/RB
multiply/VB
the/DT
third/JJ
quarter/NN
by/IN
four/CD
''/''
and/CC
assume/VB
the/DT
same/JJ
rate/NN
of/IN
improvement/NN
can/MD
be/VB
sustained/VBN
./.
One/CD
difference/NN
,/,
he/PRP
said/VBD
,/,
is/VBZ
that/IN
the/DT
fourth/JJ
quarter/NN
has/VBZ
significantly/RB
fewer/JJR
workdays/NNS
because/IN
of/IN
holidays/NNS
and/CC
the/DT
hunting/NN
season/NN
./.
``/``
I/PRP
do/VBP
n't/RB
want/VB
to/TO
give/VB
the/DT
impression/NN
that/IN
everybody/NN
can/MD
relax/VB
now/RB
,/,
''/''
he/PRP
said/VBD
./.
``/``
We/PRP
have/VBP
to/TO
keep/VB
working/VBG
at/IN
improving/VBG
our/PRP$
core/NN
business/NN
to/TO
stay/VB
efficient/JJ
./.
It/PRP
's/VBZ
a/DT
process/NN
that/IN
never/RB
really/RB
ends/VBZ
./.
''/''
Nevertheless/RB
,/,
Mr./NNP
Hutchinson/NNP
predicted/VBD
that/IN
1989/CD
would/MD
be/VB
``/``
solidly/RB
profitable/JJ
''/''
for/IN
Westmoreland/NNP
and/CC
that/DT
1990/CD
would/MD
bring/VB
``/``
more/JJR
of/IN
the/DT
same/JJ
./.
''/''
For/IN
all/DT
of/IN
1988/CD
,/,
the/DT
company/NN
reported/VBD
an/DT
after-tax/JJ
operating/NN
loss/NN
of/IN
$/$
134,000/CD
on/IN
revenue/NN
of/IN
$/$
593.5/CD
million/CD
./.
An/DT
accounting/NN
adjustment/NN
made/VBD
net/JJ
income/NN
$/$
1.5/CD
million/CD
,/,
or/CC
18/CD
cents/NNS
a/DT
share/NN
./.
In/IN
a/DT
move/NN
that/WDT
complements/VBZ
the/DT
company/NN
's/POS
basic/JJ
strategy/NN
,/,
its/PRP$
Westmoreland/NNP
Energy/NNP
Inc./NNP
unit/NN
is/VBZ
developing/VBG
four/CD
coal-fired/JJ
cogeneration/NN
plants/NNS
with/IN
a/DT
partner/NN
in/IN
Virginia/NNP
./.
Some/DT
of/IN
the/DT
coal/NN
the/DT
plants/NNS
buy/VB
will/MD
come/VB
from/IN
Westmoreland/NNP
mines/NNS
./.
Mr./NNP
Hutchinson/NNP
predicted/VBD
that/IN
the/DT
unit/NN
's/POS
contribution/NN
to/TO
company/NN
results/NNS
in/IN
the/DT
1990s/CD
``/``
will/MD
be/VB
exciting/JJ
./.
''/''
He/PRP
said/VBD
Westmoreland/NNP
is/VBZ
looking/VBG
at/IN
investment/NN
stakes/NNS
in/IN
other/JJ
cogeneration/NN
plants/NNS
east/JJ
of/IN
the/DT
Mississippi/NNP
River/NNP
./.
Westmoreland/NNP
expects/VBZ
energy/NN
demand/NN
to/TO
grow/VB
annually/RB
in/IN
the/DT
2.5/CD
%/NN
range/NN
in/IN
the/DT
early/JJ
1990s/NNS
./.
``/``
We/PRP
see/VBP
coal/NN
's/POS
piece/NN
of/IN
the/DT
action/NN
growing/VBG
,/,
''/''
Mr./NNP
Hutchinson/NNP
said/VBD
./.
``/``
Coal/NN
prices/NNS
,/,
while/IN
not/RB
skyrocketing/VBG
,/,
will/MD
grow/VB
modestly/RB
in/IN
real/JJ
terms/NNS
,/,
we/PRP
think/VBP
./.
''/''
Chase/NNP
Manhattan/NNP
Corp./NNP
,/,
after/IN
trying/VBG
unsuccessfully/RB
to/TO
sell/VB
its/PRP$
interest/NN
in/IN
its/PRP$
lower/JJR
Manhattan/NNP
operations/NNS
building/NN
,/,
has/VBZ
exercised/VBN
its/PRP$
option/NN
to/TO
purchase/VB
the/DT
50-story/JJ
office/NN
tower/NN
./.
Chase/NNP
had/VBD
purchased/VBN
an/DT
option/NN
to/TO
buy/VB
the/DT
building/NN
at/IN
One/CD
New/NNP
York/NNP
Plaza/NNP
for/IN
an/DT
undisclosed/JJ
sum/NN
from/IN
the/DT
late/JJ
Sol/NNP
Atlas/NNP
as/IN
part/NN
of/IN
its/PRP$
original/JJ
lease/NN
in/IN
1970/CD
./.
The/DT
current/JJ
transaction/NN
cost/VBD
the/DT
bank/NN
approximately/RB
$/$
140/CD
million/CD
./.
Of/IN
that/DT
amount/NN
,/,
$/$
20/CD
million/CD
was/VBD
payment/NN
for/IN
the/DT
land/NN
underneath/IN
the/DT
building/NN
and/CC
the/DT
rest/NN
was/VBD
for/IN
the/DT
building/NN
itself/PRP
./.
The/DT
building/NN
houses/VBZ
about/RB
4,500/CD
Chase/NNP
workers/NNS
,/,
most/JJS
of/IN
whom/WP
will/MD
be/VB
moved/VBN
to/TO
downtown/NN
Brooklyn/NNP
after/IN
the/DT
bank/NN
's/POS
new/JJ
back/JJ
office/NN
center/NN
is/VBZ
completed/VBN
in/IN
1993/CD
./.
The/DT
move/NN
is/VBZ
part/NN
of/IN
Chase/NNP
's/POS
strategy/NN
to/TO
consolidate/VB
its/PRP$
back/JJ
offices/NNS
under/IN
one/CD
roof/NN
./.
The/DT
headquarters/NN
is/VBZ
located/VBN
a/DT
few/JJ
blocks/NNS
away/RB
at/IN
1/CD
Chase/NNP
Manhattan/NNP
Plaza/NNP
./.
As/IN
part/NN
of/IN
its/PRP$
decision/NN
to/TO
leave/VB
the/DT
building/NN
,/,
Chase/NNP
tried/VBD
to/TO
sell/VB
its/PRP$
interest/NN
,/,
along/IN
with/IN
the/DT
Atlas/NNP
estate/NN
's/POS
interest/NN
,/,
shortly/RB
after/IN
the/DT
October/NNP
1987/CD
stock/NN
market/NN
crash/NN
./.
Chase/NNP
Senior/NNP
Vice/NNP
President/NNP
George/NNP
Scandalios/NNP
said/VBD
the/DT
bank/NN
decided/VBD
to/TO
exercise/VB
its/PRP$
option/NN
after/IN
bids/NNS
fell/VBD
short/RB
of/IN
expectations/NNS
./.
He/PRP
said/VBD
Chase/NNP
and/CC
the/DT
Atlas/NNP
estate/NN
were/VBD
looking/VBG
to/TO
sell/VB
the/DT
entire/JJ
building/NN
for/IN
$/$
400/CD
million/CD
to/TO
$/$
475/CD
million/CD
,/,
but/CC
did/VBD
n't/RB
get/VB
an/DT
offer/NN
for/IN
more/JJR
than/IN
$/$
375/CD
million/CD
./.
As/IN
the/DT
building/NN
's/POS
new/JJ
owner/NN
,/,
Chase/NNP
will/MD
have/VB
its/PRP$
work/NN
cut/VBD
out/RP
for/IN
it/PRP
./.
Chase/NNP
is/VBZ
vacating/VBG
1.1/CD
million/CD
square/JJ
feet/NNS
of/IN
space/NN
,/,
and/CC
Salomon/NNP
Brothers/NNP
Inc./NNP
,/,
whose/WP$
headquarters/NN
is/VBZ
in/IN
the/DT
building/NN
,/,
also/RB
plans/VBZ
to/TO
move/VB
shortly/RB
./.
In/IN
addition/NN
,/,
another/DT
major/JJ
building/NN
tenant/NN
,/,
Thomson/NNP
McKinnon/NNP
Inc./NNP
's/POS
Thomson/NNP
McKinnon/NNP
Securities/NNP
,/,
likely/RB
will/MD
vacate/VB
the/DT
premises/NNS
as/IN
part/NN
of/IN
its/PRP$
liquidation/NN
./.
New/NNP
York/NNP
real/JJ
estate/NN
brokerage/NN
Edward/NNP
S./NNP
Gordon/NNP
Co./NNP
will/MD
have/VB
the/DT
difficult/JJ
task/NN
of/IN
finding/VBG
new/JJ
tenants/NNS
./.
Even/RB
with/IN
its/PRP$
striking/JJ
views/NNS
of/IN
the/DT
New/NNP
York/NNP
harbor/NN
,/,
the/DT
building/NN
is/VBZ
considered/VBN
antiquated/JJ
by/IN
modern/JJ
office/NN
standards/NNS
./.
And/CC
Chase/NNP
will/MD
have/VB
to/TO
spend/VB
approximately/RB
$/$
50/CD
million/CD
to/TO
remove/VB
asbestos/NN
from/IN
the/DT
premises/NNS
./.
WALL/NNP
STREET/NNP
,/,
SHAKE/VB
hands/NNS
with/IN
George/NNP
Orwell/NNP
./.
The/DT
author/NN
of/IN
the/DT
futuristic/JJ
novel/NN
``/``
1984/CD
''/''
invented/VBD
a/DT
language/NN
called/VBD
Newspeak/NNP
that/IN
made/VBN
it/PRP
impossible/JJ
to/TO
fully/RB
develop/VB
a/DT
heretical/JJ
thought/NN
--/:
that/DT
is/VBZ
,/,
anything/NN
negative/JJ
about/IN
the/DT
policies/NNS
and/CC
practices/NNS
of/IN
the/DT
state/NN
./.
Wall/NNP
Street/NNP
has/VBZ
n't/RB
gotten/VBN
that/IN
far/RB
yet/RB
,/,
but/CC
it/PRP
has/VBZ
made/VBN
a/DT
promising/JJ
start/NN
./.
Its/PRP$
language/NN
--/:
call/VB
it/PRP
Streetspeak/VB
--/:
is/VBZ
increasingly/RB
mellifluous/JJ
,/,
reassuring/VBG
,/,
and/CC
designed/VBD
to/TO
make/VB
financial/JJ
products/NNS
and/CC
maneuvers/NNS
appear/VB
better/JJR
,/,
safer/JJR
or/CC
cheaper/JJR
than/IN
they/PRP
really/RB
are/VBP
./.
When/WRB
something/NN
undeniably/RB
nasty/JJ
happens/VBZ
,/,
a/DT
few/JJ
euphemisms/NNS
are/VBP
deployed/VBN
to/TO
simply/RB
make/VB
it/PRP
disappear/VB
,/,
much/RB
as/IN
a/DT
fresh/JJ
grave/NN
may/MD
be/VB
covered/VBN
by/IN
a/DT
blanket/NN
of/IN
flowers/NNS
./.
For/IN
example/NN
,/,
we/PRP
'll/MD
bet/VB
you/PRP
thought/VBD
that/IN
the/DT
stock/NN
market/NN
crashed/VBD
two/CD
years/NNS
ago/RB
./.
Wrong/JJ
./.
According/VBG
to/TO
some/DT
of/IN
the/DT
grand/JJ
panjandrums/NNS
of/IN
the/DT
market/NN
,/,
it/PRP
never/RB
happened/VBD
./.
In/IN
their/PRP$
lexicon/NN
the/DT
508-point/JJ
collapse/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
on/IN
Oct./NNP
19/CD
,/,
1987/CD
,/,
was/VBD
just/RB
a/DT
big/JJ
blip/NN
./.
Trotting/VBG
out/IN
a/DT
much-beloved/JJ
Streetspeak/NNP
term/NN
,/,
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
Chairman/NNP
John/NNP
Phelan/NNP
recently/RB
declared/VBD
that/DT
history/NN
would/MD
record/VB
the/DT
event/NN
as/IN
only/RB
``/``
a/DT
major/JJ
technical/JJ
correction/NN
./.
''/''
Another/DT
much-beloved/JJ
saying/VBG
,/,
however/RB
,/,
this/DT
one/CD
in/IN
plain/JJ
English/NNP
,/,
holds/VBZ
that/IN
if/IN
something/NN
walks/VBZ
like/IN
a/DT
duck/NN
and/CC
quacks/VBZ
like/IN
a/DT
duck/NN
,/,
it/PRP
is/VBZ
a/DT
duck/NN
./.
On/IN
Oct./NNP
29/CD
,/,
1929/CD
--/:
a/DT
date/NN
historians/NNS
stubbornly/RB
insist/VBP
on/RP
associating/VBG
with/IN
the/DT
dreaded/VBN
C-word/NN
--/:
the/DT
DJ/NNP
industrials/NNS
fell/VBD
12.8/CD
%/NN
./.
In/IN
the/DT
``/``
technical/JJ
correction/NN
''/''
of/IN
two/CD
years/NNS
ago/RB
,/,
they/PRP
lost/VBD
a/DT
whopping/JJ
22.6/CD
%/NN
./.
Customers/NNS
hear/VBP
a/DT
lot/NN
of/IN
this/DT
stuff/NN
from/IN
people/NNS
who/WP
try/VBP
to/TO
sell/VB
them/PRP
stock/NN
./.
These/DT
people/NNS
used/VBD
to/TO
be/VB
called/VBN
brokers/NNS
,/,
but/CC
apparently/RB
this/DT
word/NN
either/CC
is/VBZ
not/RB
grandiose/JJ
enough/RB
or/CC
carries/VBZ
too/RB
many/JJ
negative/JJ
connotations/NNS
from/IN
the/DT
aforementioned/JJ
technical/JJ
correction/NN
,/,
when/WRB
terrified/VBN
customers/NNS
could/MD
n't/RB
raise/VB
brokers/NNS
on/IN
the/DT
phone/NN
./.
Either/CC
way/NN
,/,
the/DT
word/NN
``/``
broker/NN
''/''
is/VBZ
clearly/RB
out/IN
of/IN
favor/NN
./.
Of/IN
the/DT
major/JJ
New/NNP
York-based/JJ
securities/NNS
firms/NNS
,/,
only/RB
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
still/RB
calls/VBZ
its/PRP$
salespeople/NN
brokers/NNS
./.
At/IN
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
and/CC
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
,/,
they/PRP
are/VBP
``/``
financial/JJ
consultants/NNS
./.
''/''
At/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
,/,
Prudential/NNP
Bache/NNP
Securities/NNP
,/,
and/CC
Dean/NNP
Witter/NNP
Reynolds/NNP
Inc./NNP
,/,
they/PRP
are/VBP
``/``
account/NN
executives/NNS
./.
''/''
At/IN
PaineWebber/NNP
Inc./NNP
,/,
they/PRP
are/VBP
``/``
investment/NN
executives/NNS
./.
''/''
Such/JJ
titles/NNS
are/VBP
designed/VBN
to/TO
convey/VB
a/DT
sense/NN
of/IN
dignified/JJ
,/,
broad-scale/JJ
competence/NN
and/CC
expertise/NN
in/IN
selling/VBG
today/NN
's/POS
myriad/JJ
financial/JJ
products/NNS
./.
It/PRP
is/VBZ
a/DT
competence/NN
and/CC
expertise/NN
that/IN
some/DT
brokers/NNS
themselves/PRP
,/,
overwhelmed/VBN
by/IN
all/DT
the/DT
new/JJ
things/NNS
being/VBG
dreamed/VBN
up/RP
for/IN
them/PRP
to/TO
peddle/VB
,/,
do/VBP
n't/RB
feel/VB
./.
``/``
It/PRP
s/VBZ
almost/RB
product/NN
de/FW
jour/FW
,/,
''/''
grouses/VBZ
one/CD
account/NN
executive/NN
at/IN
Dean/NNP
Witter/NNP
./.
The/DT
transmogrified/VBN
brokers/NNS
never/RB
let/VBP
the/DT
C-word/NN
cross/VB
their/PRP$
lips/NNS
,/,
instead/RB
stressing/VBG
such/JJ
terms/NNS
as/IN
``/``
safe/JJ
,/,
''/''
``/``
insured/VBN
''/''
and/CC
``/``
guaranteed/VBN
''/''
--/:
even/RB
though/IN
these/DT
terms/NNS
may/MD
be/VB
severely/RB
limited/VBN
in/IN
their/PRP$
application/NN
to/TO
a/DT
particular/JJ
new/JJ
financial/JJ
product/NN
./.
The/DT
names/NNS
of/IN
some/DT
of/IN
these/DT
products/NNS
do/VBP
n't/RB
suggest/VB
the/DT
risk/NN
involved/VBN
in/IN
buying/VBG
them/PRP
,/,
either/RB
./.
A/DT
case/NN
in/IN
point/NN
:/:
``/``
government-plus/JJ
''/''
bond/NN
funds/NNS
./.
What/WP
could/MD
imply/VB
more/JJR
safety/NN
than/IN
investing/VBG
in/IN
government/NN
bonds/NNS
?/.
What/WP
could/MD
be/VB
better/JJR
than/IN
getting/VBG
a/DT
tad/NN
more/JJR
income/NN
from/IN
them/PRP
the/DT
plus/NN
other/JJ
people/NNS
?/.
Indeed/RB
,/,
conservative/JJ
investors/NNS
,/,
many/JJ
of/IN
them/PRP
elderly/JJ
,/,
have/VBP
poured/VBN
more/JJR
than/IN
$/$
50/CD
billion/CD
into/IN
such/JJ
funds/NNS
,/,
which/WDT
promise/VBP
fatter/JJR
yields/NNS
than/IN
ordinary/JJ
Treasury/NNP
bonds/NNS
--/:
only/RB
to/TO
learn/VB
later/JJ
that/IN
these/DT
funds/NNS
use/VBP
part/NN
of/IN
their/PRP$
money/NN
to/TO
dabble/VB
in/IN
high-risk/JJ
bond/NN
options/NNS
,/,
a/DT
gambler/NN
's/POS
game/NN
./.
When/WRB
a/DT
certain/JJ
class/NN
of/IN
investment/NN
performs/VBZ
so/RB
poorly/RB
that/IN
its/PRP$
reputation/NN
is/VBZ
tarnished/VBN
,/,
look/VB
for/IN
Wall/NNP
Street/NNP
to/TO
give/VB
it/PRP
a/DT
new/JJ
moniker/NN
./.
This/DT
seems/VBZ
to/TO
be/VB
happening/VBG
now/RB
to/TO
limited/VBN
partnerships/NNS
,/,
many/JJ
of/IN
which/WDT
either/CC
have/VBP
gone/VBN
into/IN
the/DT
tank/NN
in/IN
recent/JJ
years/NNS
or/CC
have/VBP
otherwise/RB
been/VBN
grievous/JJ
disappointments/NNS
./.
They/PRP
are/VBP
still/RB
being/VBG
sold/VBN
,/,
but/CC
more/RBR
and/CC
more/RBR
often/RB
as/IN
``/``
direct/JJ
investments/NNS
''/''
--/:
with/IN
all/DT
the/DT
same/JJ
risks/NNS
they/PRP
had/VBD
under/IN
the/DT
old/JJ
label/NN
./.
In/IN
such/JJ
cases/NNS
,/,
the/DT
game/NN
has/VBZ
n't/RB
changed/VBD
,/,
only/RB
the/DT
name/NN
./.
In/IN
others/NNS
a/DT
familiar/JJ
old/JJ
name/NN
still/RB
prevails/VBZ
,/,
but/CC
the/DT
underlying/JJ
game/NN
has/VBZ
changed/VBN
./.
For/IN
example/NN
,/,
``/``
no/DT
load/NN
''/''
mutual/JJ
funds/NNS
remain/VBP
a/DT
favorite/NN
with/IN
investors/NNS
because/IN
they/PRP
do/VBP
n't/RB
carry/VB
a/DT
frontend/NN
sales/NNS
commission/NN
./.
Getting/VBG
out/RB
of/IN
them/PRP
,/,
however/RB
,/,
may/MD
be/VB
a/DT
different/JJ
story/NN
now/RB
./.
Traditional/JJ
no-loads/NNS
made/VBD
their/PRP$
money/NN
by/IN
charging/VBG
an/DT
annual/JJ
management/NN
fee/NN
,/,
usually/RB
a/DT
modest/JJ
one/CD
;/:
they/PRP
imposed/VBD
no/DT
other/JJ
fees/NNS
,/,
and/CC
many/JJ
still/RB
do/VBP
n't/RB
./.
In/IN
recent/JJ
years/NNS
,/,
though/RB
,/,
a/DT
passel/NN
of/IN
others/NNS
flying/VBG
the/DT
no-load/JJ
flag/NN
have/VBP
been/VBN
imposing/VBG
hefty/JJ
charges/NNS
--/:
all/DT
the/DT
way/NN
up/IN
to/TO
6/CD
%/NN
--/:
when/WRB
an/DT
investor/NN
sells/VBZ
his/PRP$
shares/NNS
./.
Should/MD
n't/RB
they/PRP
properly/RB
be/VB
called/VBN
exit-load/JJ
funds/NNS
?/.
The/DT
mutual-fund/JJ
industry/NN
is/VBZ
debating/VBG
the/DT
question/NN
,/,
but/CC
do/VBP
n't/RB
expect/VB
a/DT
new/JJ
name/NN
while/IN
the/DT
old/JJ
one/CD
is/VBZ
working/VBG
so/RB
well/RB
./.
And/CC
do/VBP
n't/RB
expect/VB
anyone/NN
to/TO
change/VB
the/DT
term/NN
``/``
blue/JJ
chip/NN
,/,
''/''
either/CC
,/,
even/RB
though/IN
some/DT
of/IN
the/DT
companies/NNS
that/WDT
still/RB
enjoy/VBP
the/DT
title/NN
may/MD
be/VB
riskier/JJR
investments/NNS
than/IN
they/PRP
were/VBD
./.
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
Co./NNP
,/,
for/IN
one/CD
,/,
is/VBZ
still/RB
a/DT
favorite/JJ
of/IN
widows/NNS
,/,
orphans/NNS
and/CC
trust/NN
departments/NNS
--/:
but/CC
shorn/VB
of/IN
its/PRP$
regional/JJ
telephone/NN
units/NNS
and/CC
exposed/VBN
to/TO
competition/NN
on/IN
every/DT
side/NN
,/,
it/PRP
is/VBZ
a/DT
far/RB
different/JJ
investment/NN
prospect/NN
than/IN
it/PRP
was/VBD
before/IN
divestiture/NN
./.
Also/RB
,/,
blue/JJ
chips/NNS
in/IN
general/JJ
have/VBP
suffered/VBN
much/RB
more/RBR
short-term/JJ
price/NN
volatility/NN
in/IN
recent/JJ
years/NNS
./.
Larry/NNP
Biehl/NNP
,/,
a/DT
money/NN
manager/NN
in/IN
San/NNP
Mateo/NNP
,/,
Calif./NNP
,/,
blames/VBZ
that/DT
on/IN
the/DT
advent/NN
of/IN
program/NN
trading/NN
,/,
in/IN
which/WDT
computers/NNS
used/VBN
by/IN
big/JJ
institutional/JJ
investors/NNS
are/VBP
programmed/VBN
to/TO
buy/VB
and/CC
sell/VB
big/JJ
blocks/NNS
when/WRB
certain/JJ
market/NN
conditions/NNS
prevail/VBP
./.
Blue/JJ
chips/NNS
,/,
he/PRP
says/VBZ
,/,
``/``
are/VBP
now/RB
being/VBG
referred/VBN
to/TO
as/IN
poker/NN
chips/NNS
./.
''/''
Finally/RB
,/,
even/RB
the/DT
time-honored/JJ
strategy/NN
called/VBN
``/``
value/NN
investing/NN
''/''
no/RB
longer/RB
means/VBZ
what/WP
it/PRP
once/RB
did/VBD
./.
Before/IN
the/DT
takeover/NN
mania/NN
of/IN
the/DT
'80s/NNS
,/,
it/PRP
referred/VBD
to/TO
rooting/VBG
out/RP
through/IN
analysis/NN
undervalued/VBN
stocks/NNS
,/,
especially/RB
those/DT
with/IN
shrewd/JJ
management/NN
,/,
sound/NN
fundamentals/NNS
and/CC
decent/JJ
prospects/NNS
./.
Now/RB
,/,
says/VBZ
Mr./NNP
Biehl/NNP
,/,
value/NN
investing/NN
often/RB
means/VBZ
``/``
looking/VBG
for/IN
downtrodden/JJ
companies/NNS
with/IN
terrible/JJ
management/NN
that/WDT
are/VBP
in/IN
real/JJ
trouble/NN
./.
''/''
To/TO
institutional/JJ
investors/NNS
or/CC
brokers/NNS
,/,
he/PRP
adds/VBZ
,/,
a/DT
company/NN
with/IN
value/NN
is/VBZ
a/DT
company/NN
at/IN
risk/NN
of/IN
being/VBG
swallowed/VBN
up/RP
./.
Ms./NNP
Bettner/NNP
covers/VBZ
personal/JJ
finance/NN
from/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
's/POS
Los/NNP
Angeles/NNP
bureau/NN
./.
I/PRP
was/VBD
amused/VBN
to/TO
read/VB
your/PRP$
recent/JJ
news/NN
stories/NNS
on/IN
the/DT
banking/NN
industry/NN
's/POS
reserve/NN
additions/NNS
and/CC
concomitant/JJ
threats/NNS
to/TO
cease/VB
making/VBG
new/JJ
loans/NNS
to/TO
less-developed/JJ
countries/NNS
./.
If/IN
the/DT
whole/JJ
story/NN
were/VBD
told/VBN
,/,
it/PRP
would/MD
read/VB
something/NN
like/IN
this/DT
:/:
--/:
During/IN
the/DT
1970s/NNS
the/DT
commercial/JJ
banks/NNS
lured/VBD
the/DT
country/NN
loan/NN
business/NN
away/RB
from/IN
the/DT
bond/NN
markets/NNS
where/WRB
the/DT
discipline/NN
of/IN
a/DT
prospectus/NN
and/CC
``/``
Use/NNP
of/IN
Proceeds/NNP
''/''
confirmation/NN
allowed/VBD
lenders/NNS
to/TO
audit/VB
expenditures/NNS
of/IN
old/JJ
loans/NNS
before/IN
new/JJ
loans/NNS
were/VBD
made/VBN
./.
--/:
The/DT
reward/NN
for/IN
that/DT
reckless/JJ
lending/NN
was/VBD
high/RB
reported/VBN
earnings/NNS
management/NN
bonuses/NNS
the/DT
price/NN
,/,
a/DT
sea/NN
of/IN
bad/JJ
loans/NNS
./.
--/:
For/IN
the/DT
past/JJ
several/JJ
years/NNS
,/,
the/DT
banks/NNS
,/,
lacking/VBG
a/DT
private/JJ
navy/NN
to/TO
enforce/VB
their/PRP$
interests/NNS
,/,
have/VBP
been/VBN
pressuring/VBG
the/DT
U.S./NNP
Treasury/NNP
to/TO
underwrite/VB
their/PRP$
bad/JJ
LDC/NNP
credits/NNS
./.
--/:
The/DT
Treasury/NNP
wisely/RB
has/VBZ
refused/VBN
,/,
but/CC
has/VBZ
concluded/VBN
that/IN
indirect/JJ
credit/NN
support/NN
through/IN
various/JJ
multinational/JJ
agencies/NNS
should/MD
be/VB
made/VBN
available/JJ
for/IN
a/DT
price/NN
:/:
either/CC
debt/NN
reduction/NN
or/CC
debt-service/JJ
reduction/NN
or/CC
new/JJ
loans/NNS
the/DT
Brady/NNP
Plan/NNP
--/:
The/DT
banks/NNS
will/MD
threaten/VB
not/RB
to/TO
make/VB
further/JJ
loans/NNS
,/,
but/CC
in/IN
truth/NN
,/,
lacking/VBG
the/DT
capital/NN
to/TO
write/VB
off/RP
their/PRP$
mistakes/NNS
or/CC
to/TO
build/VB
a/DT
navy/NN
,/,
they/PRP
have/VBP
no/DT
alternative/NN
but/CC
to/TO
go/VB
along/RP
./.
George/NNP
A./NNP
Wiegers/NNP
New/NNP
York/NNP
Gillette/NNP
Co./NNP
elected/VBD
Warren/NNP
E./NNP
Buffett/NNP
,/,
chairman/NN
of/IN
Berkshire/NNP
Hathaway/NNP
Inc./NNP
,/,
to/TO
its/PRP$
board/NN
,/,
increasing/VBG
the/DT
number/NN
of/IN
directors/NNS
to/TO
12/CD
from/IN
11/CD
./.
Berkshire/NNP
Hathaway/NNP
earlier/RBR
this/DT
year/NN
bought/VBD
$/$
600/CD
million/CD
of/IN
preferred/JJ
stock/NN
in/IN
Gillette/NNP
that/WDT
is/VBZ
convertible/JJ
into/IN
an/DT
11/CD
%/NN
stake/NN
,/,
and/CC
Gillette/NNP
said/VBD
at/IN
the/DT
time/NN
that/IN
Mr./NNP
Buffett/NNP
would/MD
be/VB
added/VBN
to/TO
the/DT
board/NN
./.
Separately/NNP
,/,
Gillette/NNP
said/VBD
its/PRP$
third-quarter/JJ
earnings/NNS
rose/VBD
2/CD
%/NN
to/TO
$/$
65.2/CD
million/CD
,/,
or/CC
57/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
63.9/CD
million/CD
,/,
or/CC
57/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
year-earlier/JJ
period/NN
;/:
per-share/JJ
earnings/NNS
remained/VBD
flat/JJ
despite/IN
an/DT
increase/NN
in/IN
net/JJ
income/NN
in/IN
part/NN
because/IN
the/DT
company/NN
paid/VBD
a/DT
$/$
10.4/CD
million/CD
dividend/NN
on/IN
the/DT
new/JJ
preferred/VBN
stock/NN
in/IN
the/DT
period/NN
./.
Sales/NNS
rose/VBD
9/CD
%/NN
to/TO
$/$
921.6/CD
million/CD
from/IN
$/$
845.7/CD
million/CD
,/,
with/IN
sales/NNS
of/IN
the/DT
company/NN
's/POS
international\/diversified/JJ
operations/NNS
``/``
well/RB
above/JJ
''/''
the/DT
year/NN
earlier-period/NN
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Gillette/NNP
's/POS
net/JJ
income/NN
declined/VBD
1/CD
%/NN
to/TO
$/$
205.3/CD
million/CD
,/,
or/CC
$/$
2.02/CD
a/DT
share/NN
,/,
from/IN
$/$
207/CD
million/CD
,/,
or/CC
$/$
1.82/CD
a/DT
share/NN
,/,
in/IN
the/DT
1988/CD
period/NN
./.
Sales/NNS
rose/VBD
6/CD
%/NN
to/TO
$/$
2.77/CD
billion/CD
from/IN
$/$
2.61/CD
billion/CD
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
the/DT
company/NN
closed/VBD
yesterday/NN
at/IN
$/$
45.50/CD
a/DT
share/NN
,/,
up/RB
25/CD
cents/NNS
./.
When/WRB
Walter/NNP
Yetnikoff/NNP
,/,
the/DT
president/NN
of/IN
Sony/NNP
Corp./NNP
's/POS
CBS/NNP
Records/NNP
,/,
last/JJ
month/NN
told/VBD
producer/NN
Peter/NNP
Guber/NNP
that/IN
Sony/NNP
was/VBD
about/IN
to/TO
make/VB
a/DT
$/$
3.4/CD
billion/CD
bid/NN
for/IN
Columbia/NNP
Pictures/NNP
and/CC
needed/VBD
someone/NN
to/TO
run/VB
the/DT
studio/NN
,/,
Mr./NNP
Guber/NNP
jumped/VBD
at/IN
the/DT
chance/NN
./.
Within/IN
two/CD
days/NNS
,/,
he/PRP
was/VBD
on/IN
his/PRP$
way/NN
to/TO
New/NNP
York/NNP
and/CC
Tokyo/NNP
to/TO
meet/VB
with/IN
top/JJ
brass/NN
at/IN
Sony/NNP
./.
And/CC
before/IN
the/DT
week/NN
was/VBD
out/JJ
,/,
Sony/NNP
had/VBD
offered/VBN
Mr./NNP
Guber/NNP
and/CC
his/PRP$
partner/NN
,/,
Jon/NNP
Peters/NNP
,/,
the/DT
most/RBS
lucrative/JJ
employment/NN
contracts/NNS
in/IN
the/DT
history/NN
of/IN
the/DT
movie/NN
business/NN
./.
Not/RB
only/RB
that/DT
,/,
Sony/NNP
also/RB
agreed/VBD
to/TO
give/VB
them/PRP
a/DT
stake/NN
in/IN
Columbia/NNP
's/POS
future/JJ
profits/NNS
and/CC
buy/VB
their/PRP$
company/NN
,/,
Guber/NNP
Peters/NNP
Entertainment/NNP
Co./NNP
,/,
for/IN
$/$
200/CD
million/CD
,/,
almost/RB
40/CD
%/NN
more/JJR
than/IN
the/DT
market/NN
value/NN
of/IN
the/DT
company/NN
./.
There/EX
was/VBD
just/RB
one/CD
sticking/NN
point/NN
:/:
The/DT
two/CD
had/VBD
a/DT
prior/JJ
commitment/NN
./.
Just/RB
seven/CD
months/NNS
earlier/RBR
,/,
they/PRP
had/VBD
signed/VBN
a/DT
five-year/JJ
exclusive/JJ
contract/NN
to/TO
make/VB
movies/NNS
for/IN
Warner/NNP
Bros./NNP
for/IN
which/WDT
they/PRP
had/VBD
just/RB
produced/VBN
the/DT
smash/NN
hit/VBN
``/``
Batman/NNP
./.
''/''
But/CC
Mr./NNP
Guber/NNP
figured/VBD
that/IN
Warner/NNP
Communications/NNP
Inc./NNP
chairman/NN
Steven/NNP
Ross/NNP
,/,
would/MD
empathize/VB
and/CC
let/VB
the/DT
producers/NNS
go/VB
,/,
knowing/VBG
the/DT
Sony/NNP
offer/NN
was/VBD
``/``
the/DT
culmination/NN
of/IN
a/DT
life/NN
's/POS
work/NN
./.
''/''
He/PRP
figured/VBD
wrong/JJ
./.
Last/JJ
week/NN
,/,
following/VBG
fruitless/JJ
settlement/NN
talks/NNS
,/,
Warner/NNP
,/,
now/RB
merging/VBG
with/IN
Time/NNP
Inc./NNP
,/,
filed/VBD
a/DT
$/$
1/CD
billion/CD
breach/NN
of/IN
contract/NN
suit/NN
in/IN
Los/NNP
Angeles/NNP
Superior/NNP
Court/NNP
against/IN
both/DT
Sony/NNP
and/CC
Guber/NNP
Peters/NNP
./.
Sony/NNP
promptly/RB
countersued/VBD
,/,
charging/VBG
Warner/NNP
with/IN
trying/VBG
to/TO
sabotage/VB
its/PRP$
acquisitions/NNS
and/CC
hurt/VB
its/PRP$
efforts/NNS
to/TO
enter/VB
the/DT
U.S./NNP
movie/NN
business/NN
./.
The/DT
accusations/NNS
of/IN
lying/VBG
and/CC
duplicity/NN
are/VBP
flying/VBG
thick/JJ
and/CC
fast/JJ
on/IN
both/DT
sides/NNS
:/:
As/IN
one/CD
Sony/NNP
executive/NN
puts/VBZ
it/PRP
,/,
``/``
It/PRP
's/VBZ
World/NNP
War/NNP
III/NNP
./.
''/''
That/IN
two/CD
successful/JJ
producers/NNS
who/WP
are/VBP
n't/RB
all/DT
that/IN
well/RB
known/VBN
outside/IN
Hollywood/NNP
could/MD
occasion/VB
such/JJ
a/DT
clash/NN
of/IN
corporate/JJ
titans/NNS
suggests/VBZ
how/WRB
desperate/JJ
the/DT
quest/NN
for/IN
proven/VBN
talent/NN
is/VBZ
in/IN
the/DT
movie/NN
business/NN
./.
And/CC
they/PRP
are/VBP
a/DT
very/RB
odd/JJ
team/NN
in/IN
any/DT
case/NN
./.
Mr./NNP
Guber/NNP
was/VBD
raised/VBN
in/IN
Boston/NNP
and/CC
educated/VBN
in/IN
New/NNP
York/NNP
./.
He/PRP
is/VBZ
a/DT
lawyer/NN
with/IN
a/DT
string/NN
of/IN
academic/JJ
degrees/NNS
./.
Mr./NNP
Peters/NNP
is/VBZ
a/DT
high-school/NN
dropout/NN
who/WP
came/VBD
to/TO
fame/NN
as/IN
Barbra/NNP
Streisand/NNP
's/POS
hairdresser/NN
./.
Yet/RB
,/,
they/PRP
are/VBP
far/RB
and/CC
away/RB
the/DT
most/RBS
prolific/JJ
producers/NNS
in/IN
Hollywood/NNP
./.
And/CC
despite/IN
their/PRP$
share/NN
of/IN
duds/NNS
,/,
they/PRP
make/VBP
movies/NNS
that/WDT
make/VBP
money/NN
./.
That/DT
is/VBZ
a/DT
skill/NN
Sony/NNP
badly/RB
needs/VBZ
--/:
and/CC
Warner/NNP
is/VBZ
loath/JJ
to/TO
lose/VB
./.
Although/IN
Columbia/NNP
had/VBD
a/DT
good/JJ
summer/NN
with/IN
``/``
Ghostbusters/NNP
II/NNP
''/''
and/CC
``/``
When/WRB
Harry/NNP
Met/NNP
Sally/NNP
,/,
''/''
rivals/NNS
such/JJ
as/IN
Warner/NNP
,/,
Paramount/NNP
Pictures/NNP
,/,
Walt/NNP
Disney/NNP
Co./NNP
and/CC
Universal/NNP
Studios/NNP
have/VBP
been/VBN
thrashing/NN
Columbia/NNP
at/IN
the/DT
box/NN
office/NN
./.
After/IN
five/CD
years/NNS
of/IN
management/NN
turmoil/NN
,/,
with/IN
four/CD
different/JJ
studio/NN
heads/NNS
,/,
Columbia/NNP
sorely/RB
needs/VBZ
a/DT
stable/JJ
,/,
savvy/JJ
team/NN
to/TO
restore/VB
its/PRP$
credibility/NN
and/CC
get/VB
it/PRP
back/RB
in/IN
the/DT
business/NN
of/IN
making/VBG
hits/NNS
./.
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
are/VBP
n't/RB
universally/RB
loved/VBN
in/IN
Hollywood/NNP
but/CC
they/PRP
are/VBP
well/RB
connected/VBN
./.
Their/PRP$
stock/NN
in/IN
trade/NN
as/IN
``/``
executive/JJ
producers/NNS
''/''
is/VBZ
sniffing/VBG
out/RP
hot/JJ
properties/NNS
,/,
locking/VBG
them/PRP
up/RP
and/CC
then/RB
getting/VBG
big/JJ
studios/NNS
to/TO
bankroll/VB
and/CC
distribute/VB
them/PRP
./.
Sometimes/RB
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
do/VBP
little/RB
more/JJR
than/IN
grab/VB
the/DT
first/JJ
draft/NN
of/IN
a/DT
screenplay/NN
for/IN
a/DT
``/``
Flashdance/NNP
,/,
''/''
or/CC
buy/VB
rights/NNS
to/TO
a/DT
best/JJS
seller/NN
such/JJ
as/IN
``/``
The/DT
Color/NNP
Purple/NNP
./.
''/''
It/PRP
falls/VBZ
to/TO
others/NNS
to/TO
do/VB
the/DT
writing/NN
,/,
directing/NN
and/CC
producing/NN
./.
With/IN
MGM\/UA/NNP
's/POS
``/``
Rainman/NNP
,/,
''/''
for/IN
instance/NN
,/,
Messrs./NNP
Guber/NNP
and/CC
Peters/NNP
had/VBD
virtually/RB
nothing/NN
to/TO
do/VB
with/IN
day-to-day/JJ
production/NN
,/,
but/CC
their/PRP$
names/NNS
still/RB
appear/VBP
in/IN
big/JJ
letters/NNS
on/IN
the/DT
credits/NNS
,/,
and/CC
they/PRP
are/VBP
inevitably/RB
associated/VBN
with/IN
its/PRP$
success/NN
./.
Sometimes/RB
,/,
as/IN
with/IN
``/``
Batman/NNP
,/,
''/''
the/DT
pair/NN
really/RB
do/VBP
make/VB
the/DT
film/NN
./.
In/IN
that/DT
case/NN
,/,
Guber/NNP
Peters/NNP
acquired/VBD
the/DT
rights/NNS
in/IN
1979/CD
,/,
nursed/VBD
the/DT
movie/NN
through/IN
a/DT
dozen/NN
scripts/NNS
,/,
and/CC
were/VBD
on/IN
the/DT
set/NN
in/IN
London/NNP
for/IN
11/CD
months/NNS
hovering/VBG
over/IN
the/DT
most/RBS
minute/JJ
changes/NNS
in/IN
casting/NN
and/CC
production/NN
./.
``/``
They/PRP
're/VBP
the/DT
best/JJS
production/NN
talent/NN
around/RP
,/,
''/''
says/VBZ
Brian/NNP
De/NNP
Palma/NNP
,/,
beholden/JJ
to/TO
Guber/NNP
Peters/NNP
for/IN
hiring/VBG
him/PRP
to/TO
direct/VB
the/DT
Warner/NNP
movie/NN
of/IN
Tom/NNP
Wolfe/NNP
's/POS
novel/NN
``/``
Bonfire/NNP
of/IN
the/DT
Vanities/NNP
./.
''/''
On/IN
that/DT
film/NN
,/,
which/WDT
is/VBZ
to/TO
start/VB
shooting/NN
in/IN
a/DT
few/JJ
months/NNS
,/,
``/``
they/PRP
've/VBP
been/VBN
very/RB
much/RB
involved/VBN
,/,
hiring/VBG
talent/NN
and/CC
discussing/VBG
the/DT
development/NN
of/IN
the/DT
script/NN
./.
And/CC
when/WRB
you/PRP
're/VBP
making/VBG
a/DT
movie/NN
this/DT
big/JJ
,/,
you/PRP
need/VBP
all/DT
the/DT
help/NN
you/PRP
can/MD
get/VB
,/,
''/''
Mr./NNP
De/NNP
Palma/NNP
adds/VBZ
./.
``/``
I/PRP
wish/VBP
they/PRP
were/VBD
around/RB
24/CD
hours/NNS
a/DT
day/NN
./.
''/''
And/CC
some/DT
movies/NNS
seem/VBP
to/TO
have/VB
been/VBN
hurt/VBN
by/IN
their/PRP$
inattention/NN
./.
Warner/NNP
executives/NNS
blame/VBP
Mr./NNP
Guber/NNP
's/POS
and/CC
Mr./NNP
Peters/NNP
's/POS
lack/NN
of/IN
involvement/NN
in/IN
``/``
Caddyshack/NNP
II/NNP
''/''
for/IN
casting/NN
and/CC
production/NN
problems/NNS
and/CC
the/DT
film/NN
's/POS
ultimate/JJ
dismal/JJ
failure/NN
./.
``/``
We/PRP
've/VBP
had/VBD
a/DT
few/JJ
bombs/NNS
,/,
''/''
admits/VBZ
Mr./NNP
Peters/NNP
./.
``/``
But/CC
by/IN
and/CC
large/JJ
this/DT
company/NN
has/VBZ
only/RB
been/VBN
profitable/JJ
./.
''/''
He/PRP
says/VBZ
his/PRP$
company/NN
's/POS
prowess/NN
at/IN
packaging/NN
and/CC
marketing/NN
``/``
is/VBZ
why/WRB
we/PRP
'll/MD
be/VB
good/JJ
at/IN
Columbia/NNP
./.
We/PRP
practically/RB
ran/VBD
our/PRP$
own/JJ
studio/NN
./.
''/''
Longtime/JJ
Hollywood/NNP
associates/NNS
describe/VBP
Mr./NNP
Guber/NNP
as/IN
the/DT
intellectual/JJ
powerhouse/NN
of/IN
the/DT
two/CD
,/,
a/DT
man/NN
with/IN
a/DT
flair/NN
for/IN
deal-making/NN
and/CC
marketing/JJ
./.
``/``
Peter/NNP
is/VBZ
a/DT
major/JJ
piece/NN
of/IN
Hollywood/NNP
manpower/NN
who/WP
has/VBZ
really/RB
earned/VBN
his/PRP$
success/NN
,/,
''/''
says/VBZ
Robert/NNP
Bookman/NNP
,/,
an/DT
agent/NN
at/IN
Creative/NNP
Artists/NNP
Agency/NNP
./.
Mark/NNP
Johnson/NNP
,/,
the/DT
producer/NN
of/IN
``/``
Rainman/NNP
,/,
''/''
chimes/VBZ
in/RP
:/:
``/``
He/PRP
has/VBZ
a/DT
great/JJ
ability/NN
to/TO
hire/VB
terrific/JJ
people/NNS
and/CC
delegate/VB
authority/NN
.../:
./.
It/PRP
's/VBZ
no/DT
accident/NN
that/IN
they/PRP
've/VBP
been/VBN
able/JJ
to/TO
develop/VB
such/JJ
successful/JJ
material/NN
./.
''/''
Mr./NNP
Peters/NNP
,/,
on/IN
the/DT
other/JJ
hand/NN
,/,
has/VBZ
fewer/JJR
fans/NNS
in/IN
Hollywood/NNP
,/,
and/CC
his/PRP$
detractors/NNS
like/VBP
to/TO
characterize/VB
him/PRP
as/IN
something/NN
of/IN
a/DT
hot-tempered/JJ
bully/NN
./.
He/PRP
gets/VBZ
better/JJR
reviews/NNS
as/IN
a/DT
creative/JJ
whiz/NN
,/,
an/DT
enthusiast/NN
,/,
an/DT
idea/NN
man/NN
./.
He/PRP
also/RB
had/VBD
to/TO
fight/VB
harder/RBR
for/IN
credibility/NN
than/IN
his/PRP$
partner/NN
did/VBD
./.
Barbra/NNP
Streisand/NNP
made/VBD
him/PRP
famous/JJ
./.
He/PRP
cut/VBD
her/PRP$
hair/NN
./.
He/PRP
lived/VBD
with/IN
her/PRP
./.
He/PRP
came/VBD
to/TO
produce/VB
her/PRP$
records/NNS
and/CC
her/PRP$
movies/NNS
--/:
``/``
A/DT
Star/NNP
Is/NNP
Born/NNP
''/''
and/CC
``/``
The/DT
Main/NNP
Event/NNP
./.
''/''
Thrice/RB
married/VBN
but/CC
now/RB
single/JJ
,/,
Mr./NNP
Peters/NNP
got/VBD
plenty/NN
of/IN
ink/NN
last/JJ
summer/NN
for/IN
an/DT
on-set/JJ
romance/NN
with/IN
actress/NN
Kim/NNP
Basinger/NNP
during/IN
the/DT
making/NN
of/IN
``/``
Batman/NNP
./.
''/''
Mr./NNP
Guber/NNP
,/,
by/IN
contrast/NN
,/,
has/VBZ
been/VBN
married/VBN
to/TO
one/CD
woman/NN
for/IN
more/JJR
than/IN
20/CD
years/NNS
./.
But/CC
for/IN
all/DT
their/PRP$
intellectual/JJ
and/CC
stylistic/JJ
differences/NNS
,/,
they/PRP
make/VBP
the/DT
perfect/JJ
``/``
good/JJ
cop/NN
,/,
bad/JJ
cop/NN
''/''
team/NN
,/,
Hollywood/NNP
associates/NNS
say/VBP
./.
``/``
Peter/NNP
is/VBZ
the/DT
bright/JJ
,/,
sympathetic/JJ
guy/NN
when/WRB
you/PRP
're/VBP
doing/VBG
a/DT
deal/NN
,/,
''/''
says/VBZ
one/CD
agent/NN
./.
``/``
If/IN
there/EX
's/VBZ
a/DT
problem/NN
,/,
Peter/NNP
disappears/VBZ
,/,
and/CC
all/DT
of/IN
a/DT
sudden/JJ
Jon/NNP
shows/VBZ
up/RP
./.
''/''
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
rub/VBP
many/JJ
people/NNS
in/IN
Hollywood/NNP
the/DT
wrong/JJ
way/NN
./.
Producers/NNP
Don/NNP
Simpson/NNP
and/CC
Jerry/NNP
Bruckheimer/NNP
,/,
who/WP
shepherded/VBD
``/``
Flashdance/NNP
''/''
through/IN
several/JJ
scripts/NNS
and/CC
ultimately/RB
produced/VBD
the/DT
movie/NN
,/,
bristle/VBP
when/WRB
Messrs./NNS
Guber/NNP
and/CC
Peters/NNP
take/VBP
credit/NN
for/IN
the/DT
film/NN
./.
Says/VBZ
Mr./NNP
Simpson/NNP
:/:
``/``
The/DT
script/NN
was/VBD
unreadable/JJ
./.
We/PRP
reinvented/VBD
it/PRP
./.
We/PRP
are/VBP
the/DT
producers/NNS
of/IN
that/DT
movie/NN
./.
They/PRP
got/VBD
a/DT
small/JJ
piece/NN
of/IN
the/DT
net/JJ
profits/NNS
and/CC
a/DT
screen/NN
credit/NN
''/''
as/IN
executive/NN
producers/NNS
./.
When/WRB
Roger/NNP
Birnbaum/NNP
,/,
an/DT
executive/NN
who/WP
worked/VBD
for/IN
Guber/NNP
Peters/NNP
in/IN
the/DT
early/JJ
1980s/NNS
,/,
left/VBD
to/TO
take/VB
a/DT
job/NN
as/IN
head/NN
of/IN
production/NN
at/IN
the/DT
United/NNP
Artists/NNP
studio/NN
,/,
they/PRP
made/VBD
him/PRP
forfeit/VB
all/DT
credits/NNS
and/CC
financial/JJ
interest/NN
in/IN
the/DT
films/NNS
he/PRP
had/VBD
helped/VBN
develop/VB
,/,
including/VBG
``/``
Rainman/NNP
''/''
and/CC
``/``
Batman/NNP
./.
''/''
Mr./NNP
Peters/NNP
acknowledges/VBZ
that/DT
and/CC
says/VBZ
it/PRP
's/VBZ
not/RB
unlike/IN
the/DT
situation/NN
he/PRP
and/CC
Mr./NNP
Guber/NNP
are/VBP
in/IN
with/IN
Warner/NNP
./.
``/``
I/PRP
was/VBD
upset/VBN
with/IN
Roger/NNP
,/,
I/PRP
fumpered/VBD
and/CC
schmumpered/VBD
,/,
''/''
says/VBZ
Mr./NNP
Peters/NNP
./.
``/``
But/CC
he/PRP
wanted/VBD
to/TO
pursue/VB
his/PRP$
own/JJ
dream/NN
,/,
and/CC
he/PRP
went/VBD
./.
''/''
Still/RB
,/,
Mr./NNP
Birnbaum/NNP
says/VBZ
his/PRP$
relationship/NN
with/IN
Guber/NNP
Peters/NNP
was/VBD
``/``
one/CD
of/IN
the/DT
most/RBS
successful/JJ
I/PRP
've/VBP
had/VBD
in/IN
Hollywood/NNP
./.
''/''
The/DT
two/CD
``/``
have/VBP
a/DT
wonderful/JJ
chemistry/NN
--/:
Jon/NNP
is/VBZ
very/RB
impulsive/JJ
,/,
and/CC
Peter/NNP
is/VBZ
very/RB
compulsive/JJ
,/,
''/''
adds/VBZ
Mr./NNP
Birnbaum/NNP
,/,
who/WP
is/VBZ
now/RB
head/NN
of/IN
production/NN
at/IN
News/NNP
Corp./NNP
's/POS
20th/JJ
Century/NNP
Fox/NNP
Film/NNP
Co/NNP
./.
``/``
Jon/NNP
Peters/NNP
will/MD
come/VB
barreling/VBG
into/IN
a/DT
room/NN
,/,
say/VB
he/PRP
's/VBZ
got/VBD
a/DT
great/JJ
idea/NN
,/,
and/CC
be/VB
gone/VBN
./.
Peter/NNP
will/MD
take/VB
the/DT
kernel/NN
of/IN
that/DT
idea/NN
and/CC
make/VB
it/PRP
grow/VB
into/IN
something/NN
specific/NN
.../:
./.
''/''
Mr./NNP
Birnbaum/NNP
recalls/VBZ
that/IN
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
shifted/VBD
into/IN
high/JJ
gear/NN
a/DT
few/JJ
years/NNS
back/RB
upon/IN
learning/VBG
that/IN
they/PRP
had/VBD
competition/NN
for/IN
the/DT
story/NN
of/IN
the/DT
murdered/VBN
naturalist/NN
Dian/NNP
Fossey/NNP
,/,
which/WDT
became/VBD
``/``
Gorillas/NNP
in/IN
the/DT
Mist/NNP
./.
''/''
He/PRP
says/VBZ
,/,
``/``
Within/IN
a/DT
few/JJ
weeks/NNS
,/,
we/PRP
made/VBD
deals/NNS
with/IN
the/DT
government/NN
of/IN
Rwanda/NNP
and/CC
everyone/NN
who/WP
had/VBD
ever/RB
met/VBN
or/CC
talked/VBN
to/TO
Dian/NNP
Fossey/NNP
./.
I/PRP
think/VBP
Peter/NNP
even/RB
made/VBD
some/DT
deals/NNS
with/IN
the/DT
gorillas/NNS
./.
''/''
Universal/NNP
Studios/NNP
was/VBD
working/VBG
on/IN
a/DT
competing/VBG
film/NN
,/,
but/CC
the/DT
studio/NN
and/CC
its/PRP$
producers/NNS
ultimately/RB
agreed/VBD
to/TO
co-produce/VB
the/DT
film/NN
with/IN
Guber/NNP
Peters/NNP
and/CC
Warner/NNP
./.
More/RBR
recently/RB
,/,
Guber/NNP
Peters/NNP
beat/VBD
out/RP
a/DT
dozen/NN
other/JJ
producers/NNS
,/,
reportedly/RB
including/VBG
Robert/NNP
Redford/NNP
and/CC
Ted/NNP
Turner/NNP
,/,
for/IN
rights/NNS
to/TO
the/DT
life/NN
story/NN
of/IN
Chico/NNP
Mendes/NNP
,/,
the/DT
murdered/VBN
Brazilian/JJ
union/NN
leader/NN
who/WP
fought/VBD
developers/NNS
in/IN
the/DT
Amazon/NNP
rain/NN
forest/NN
./.
Messrs./NNP
Guber/NNP
and/CC
Peters/NNP
assiduously/RB
courted/VBD
the/DT
man/NN
's/POS
widow/NN
for/IN
months/NNS
,/,
showing/VBG
her/PRP
a/DT
tape/NN
of/IN
``/``
Gorillas/NNP
in/IN
the/DT
Mist/NNP
''/''
to/TO
impress/VB
her/PRP
with/IN
the/DT
quality/NN
of/IN
their/PRP$
work/NN
./.
Money/NN
helped/VBD
,/,
too/RB
./.
Ultimately/RB
,/,
they/PRP
paid/VBD
more/JJR
than/IN
$/$
1/CD
million/CD
for/IN
the/DT
rights/NNS
./.
The/DT
sale/NN
caused/VBD
a/DT
rift/NN
between/IN
the/DT
widow/NN
and/CC
some/DT
of/IN
her/PRP
husband/NN
's/POS
followers/NNS
./.
Some/DT
of/IN
the/DT
money/NN
will/MD
go/VB
to/TO
the/DT
Chico/NNP
Mendes/NNP
Foundation/NNP
,/,
but/CC
it/PRP
is/VBZ
n't/RB
earmarked/VBN
for/IN
groups/NNS
trying/VBG
to/TO
save/VB
the/DT
rain/NN
forest/NN
./.
It/PRP
's/VBZ
hardly/RB
astonishing/JJ
the/DT
men/NNS
's/POS
track/NN
record/NN
Sony/NNP
wants/VBZ
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
./.
But/CC
it/PRP
is/VBZ
puzzling/JJ
to/TO
some/DT
Hollywood/NNP
executives/NNS
that/IN
Sony/NNP
rushed/VBD
to/TO
hire/VB
them/PRP
without/IN
clearing/VBG
up/RP
the/DT
Warner/NNP
situation/NN
first/RB
./.
Some/DT
note/NN
that/IN
Sony/NNP
might/MD
have/VB
saved/VBN
itself/PRP
some/DT
trouble/NN
by/IN
just/RB
hiring/VBG
Mr./NNP
Guber/NNP
and/CC
letting/VBG
Mr./NNP
Peters/NNP
stay/VB
on/RP
to/TO
fulfill/VB
the/DT
Warner/NNP
contract/NN
./.
But/CC
though/IN
``/``
people/NNS
in/IN
town/NN
may/MD
ask/VB
why/WRB
Guber/NNP
needs/VBZ
Peters/NNP
,/,
it/PRP
's/VBZ
good/JJ
to/TO
have/VB
a/DT
partner/NN
,/,
and/CC
obviously/RB
the/DT
chemistry/NN
works/VBZ
,/,
''/''
says/VBZ
Steven/NNP
Tisch/NNP
,/,
a/DT
producer/NN
who/WP
once/RB
worked/VBD
for/IN
Mr./NNP
Guber/NNP
./.
``/``
This/DT
business/NN
is/VBZ
n't/RB
about/IN
personalities/NNS
at/IN
the/DT
end/NN
of/IN
the/DT
day/NN
--/:
it/PRP
s/VBZ
about/IN
whether/CC
the/DT
ink/NN
is/VBZ
red/JJ
or/CC
black/JJ
./.
In/IN
the/DT
case/NN
of/IN
Peter/NNP
and/CC
Jon/NNP
,/,
the/DT
ink/NN
has/VBZ
been/VBN
very/RB
,/,
very/RB
black/JJ
./.
''/''
Mr./NNP
Guber/NNP
got/VBD
his/PRP$
start/NN
in/IN
the/DT
movie/NN
business/NN
at/IN
Columbia/NNP
two/CD
decades/NNS
ago/RB
./.
Recruited/VBN
from/IN
New/NNP
York/NNP
University/NNP
's/POS
MBA/NNP
program/NN
,/,
he/PRP
rose/VBD
within/IN
two/CD
years/NNS
to/TO
head/NN
of/IN
production/NN
,/,
overseeing/VBG
such/JJ
films/NNS
as/IN
``/``
The/DT
Way/NN
We/PRP
Were/VBD
,/,
''/''
``/``
Taxi/NN
Driver/NN
,/,
''/''
``/``
Tommy/NNP
''/''
and/CC
``/``
Shampoo/NNP
./.
''/''
In/IN
1976/CD
,/,
he/PRP
teamed/VBD
up/RP
with/IN
record/NN
producer/NN
Neil/NNP
Bogart/NNP
in/IN
Casablanca/NNP
Records/NNP
and/CC
Filmworks/NNP
--/:
later/RB
called/VBN
Polygram/NNP
Pictures/NNP
--/:
where/WRB
they/PRP
produced/VBD
such/JJ
hits/NNS
as/IN
as/IN
``/``
The/DT
Deep/NNP
,/,
''/''
and/CC
``/``
Midnight/NNP
Express/NNP
./.
''/''
In/IN
1980/CD
,/,
Mr./NNP
Guber/NNP
got/VBD
together/RB
with/IN
Mr./NNP
Peters/NNP
,/,
by/IN
then/RB
a/DT
successful/JJ
producer/NN
in/IN
his/PRP$
own/JJ
right/NN
,/,
after/IN
the/DT
death/NN
of/IN
Mr./NNP
Bogart/NNP
./.
While/IN
Guber/NNP
Peters/NNP
produced/VBD
a/DT
number/NN
of/IN
hits/NNS
for/IN
Warner/NNP
and/CC
others/NNS
,/,
their/PRP$
record/NN
was/VBD
n't/RB
always/RB
so/RB
impressive/JJ
./.
Among/IN
their/PRP$
clinkers/NNS
were/VBD
``/``
The/DT
Legend/NNP
of/IN
Billie/NNP
Jean/NNP
,/,
''/''
``/``
VisionQuest/NNP
,/,
''/''
``/``
Clue/NNP
''/''
and/CC
``/``
Clan/NNP
of/IN
the/DT
Cave/NNP
Bear/NNP
./.
''/''
And/CC
the/DT
failures/NNS
make/VBP
it/PRP
possible/JJ
for/IN
Warner/NNP
in/IN
its/PRP$
current/JJ
lawsuit/NN
to/TO
paint/VB
the/DT
producers/NNS
as/IN
ingrates/NNS
./.
The/DT
studio/NN
says/VBZ
it/PRP
stuck/VBD
with/IN
them/PRP
``/``
even/RB
in/IN
the/DT
early/JJ
years/NNS
when/WRB
the/DT
creative/JJ
partnership/NN
was/VBD
not/RB
particularly/RB
profitable/JJ
for/IN
Warner/NNP
./.
''/''
Mr./NNP
Guber/NNP
replies/VBZ
that/IN
``/``
this/DT
is/VBZ
a/DT
Goliath/NNP
,/,
this/DT
Time/NNP
Warner/NNP
,/,
trying/VBG
to/TO
chew/VB
up/RP
two/CD
fellows/NNS
who/WP
have/VBP
done/VBN
only/RB
well/RB
for/IN
them/PRP
for/IN
a/DT
long/JJ
period/NN
of/IN
time/NN
./.
''/''
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
maintain/VBP
that/IN
executives/NNS
at/IN
Warner/NNP
have/VBP
always/RB
known/VBN
of/IN
their/PRP$
ambitions/NNS
to/TO
run/VB
a/DT
major/JJ
entertainment/NN
powerhouse/NN
,/,
but/CC
that/IN
Warner/NNP
never/RB
felt/VBD
threatened/VBN
until/IN
they/PRP
linked/VBD
up/RP
with/IN
Sony/NNP
./.
``/``
From/IN
the/DT
beginning/NN
,/,
{/(
they/PRP
we/PRP
had/VBD
a/DT
goal/NN
and/CC
a/DT
dream/NN
,/,
''/''
says/VBZ
Mr./NNP
Guber/NNP
./.
On/IN
a/DT
number/NN
of/IN
occasions/NNS
,/,
he/PRP
adds/VBZ
,/,
he/PRP
tried/VBD
to/TO
get/VB
Warner/NNP
to/TO
buy/VB
Guber/NNP
Peters/NNP
outright/RB
./.
``/``
They/PRP
always/RB
listened/VBD
,/,
but/CC
they/PRP
never/RB
acted/VBD
,/,
''/''
Mr./NNP
Guber/NNP
says/VBZ
./.
In/IN
1987/CD
,/,
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
contributed/VBD
their/PRP$
company/NN
's/POS
assets/NNS
in/IN
exchange/NN
for/IN
a/DT
28/CD
%/NN
stake/NN
in/IN
Barris/NNP
Entertainment/NNP
,/,
a/DT
small-fry/JJ
TV/NN
production/NN
company/NN
controlled/VBN
by/IN
Giant/NNP
Industries/NNP
Inc./NNP
Chairman/NNP
Burt/NNP
Sugarman/NNP
./.
In/IN
July/NNP
a/DT
year/NN
later/RB
,/,
Warner/NNP
agreed/VBD
to/TO
release/VB
the/DT
producers/NNS
from/IN
their/PRP$
old/JJ
contract/NN
when/WRB
Messrs./NNP
Guber/NNP
,/,
Peters/NNP
and/CC
Sugarman/NNP
made/VBD
a/DT
$/$
100/CD
million/CD
offer/NN
to/TO
buy/VB
25/CD
%/NN
of/IN
MGM\/UA/NN
./.
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
planned/VBD
to/TO
run/VB
the/DT
nearly/RB
dormant/JJ
MGM/NNP
studio/NN
,/,
and/CC
the/DT
two/CD
even/RB
tried/VBD
to/TO
interest/VB
Warner/NNP
Bros/NNP
./.
'/''
President/NNP
Terry/NNP
Semel/NNP
in/IN
becoming/VBG
a/DT
partner/NN
after/IN
he/PRP
advised/VBD
them/PRP
on/IN
the/DT
deal/NN
./.
But/CC
the/DT
MGM/NNP
plan/NN
collapsed/VBD
just/RB
two/CD
weeks/NNS
later/RBR
./.
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
say/VBP
they/PRP
got/VBD
a/DT
look/NN
at/IN
the/DT
books/NNS
and/CC
balked/VBD
at/IN
the/DT
price/NN
./.
Their/PRP$
relationship/NN
with/IN
Mr./NNP
Sugarman/NNP
soured/VBD
shortly/RB
thereafter/RB
./.
Last/JJ
May/NNP
,/,
he/PRP
sold/VBD
his/PRP$
24/CD
%/NN
stake/NN
in/IN
Barris/NNP
to/TO
a/DT
passive/NN
Australian/JJ
investor/NN
and/CC
Barris/NNP
was/VBD
renamed/VBN
Guber/NNP
Peters/NNP
Entertainment/NNP
Co/NNP
./.
Meanwhile/RB
,/,
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
had/VBD
agreed/VBN
to/TO
extend/VB
their/PRP$
Warner/NNP
agreement/NN
with/IN
the/DT
new/JJ
five-year/JJ
exclusive/JJ
contract/NN
./.
The/DT
new/JJ
deal/NN
was/VBD
considered/VBN
the/DT
most/RBS
generous/JJ
of/IN
its/PRP$
kind/NN
,/,
both/DT
financially/RB
and/CC
in/IN
terms/NNS
of/IN
creative/JJ
freedom/NN
./.
But/CC
it/PRP
paled/VBD
by/IN
comparison/NN
to/TO
what/WP
Sony/NNP
was/VBD
to/TO
offer/VB
last/JJ
month/NN
:/:
the/DT
chance/NN
,/,
at/IN
last/JJ
,/,
to/TO
run/VB
a/DT
major/JJ
studio/NN
,/,
about/RB
$/$
50/CD
million/CD
in/IN
deferred/VBN
compensation/NN
,/,
up/IN
to/TO
10/CD
%/NN
of/IN
Columbia/NNP
's/POS
future/JJ
cash/NN
flow/NN
,/,
8/CD
%/NN
of/IN
the/DT
future/JJ
appreciation/NN
of/IN
Columbia/NNP
's/POS
market/NN
value/NN
,/,
and/CC
annual/JJ
salaries/NNS
of/IN
$/$
2.7/CD
million/CD
for/IN
each/DT
./.
The/DT
producers/NNS
'/POS
28/CD
%/NN
share/NN
of/IN
publicly/RB
held/VBN
Guber/NNP
Peters/NNP
would/MD
net/VB
them/PRP
an/DT
additional/JJ
$/$
50/CD
million/CD
./.
Sony/NNP
also/RB
agreed/VBD
to/TO
indemnify/VB
the/DT
producers/NNS
against/IN
any/DT
liability/NN
to/TO
Warner/NNP
./.
Sony/NNP
is/VBZ
paying/VBG
a/DT
hefty/JJ
price/NN
for/IN
a/DT
company/NN
that/WDT
had/VBD
revenue/NN
of/IN
only/RB
$/$
42/CD
million/CD
last/JJ
year/NN
./.
And/CC
earnings/NNS
have/VBP
been/VBN
erratic/JJ
./.
In/IN
the/DT
the/DT
latest/JJS
quarter/NN
,/,
thanks/NNS
in/IN
part/NN
to/TO
``/``
Batman/NNP
,/,
''/''
Guber/NNP
Peters/NNP
earned/VBD
$/$
5.8/CD
million/CD
,/,
or/CC
50/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
to/TO
a/DT
loss/NN
of/IN
$/$
6.8/CD
million/CD
,/,
or/CC
62/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
last/JJ
year/NN
's/POS
quarter/NN
./.
Guber/NNP
Peters/NNP
stock/NN
,/,
which/WDT
traded/VBD
as/RB
low/JJ
as/IN
$/$
6/CD
a/DT
share/NN
last/JJ
year/NN
,/,
closed/VBD
yesterday/NN
at/IN
$/$
16.625/CD
./.
The/DT
two/CD
sides/NNS
now/RB
are/VBP
accusing/VBG
each/DT
other/JJ
of/IN
lying/VBG
./.
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
claim/VBP
they/PRP
have/VBP
an/DT
oral/JJ
agreement/NN
with/IN
Warner/NNP
executives/NNS
that/WDT
allows/VBZ
them/PRP
to/TO
terminate/VB
their/PRP$
contract/NN
should/MD
the/DT
opportunity/NN
to/TO
run/VB
a/DT
major/JJ
studio/NN
arise/VB
./.
But/CC
in/IN
affidavits/NNS
filed/VBN
yesterday/NN
in/IN
the/DT
Los/NNP
Angeles/NNP
court/NN
,/,
Mr./NNP
Ross/NNP
,/,
Warner/NNP
Bros./NNP
Chairman/NNP
Robert/NNP
Daly/NNP
and/CC
President/NNP
Semel/NNP
deny/VBP
that/IN
such/JJ
an/DT
oral/JJ
agreement/NN
was/VBD
ever/RB
made/VBN
./.
Warner/NNP
,/,
in/IN
its/PRP$
court/NN
filings/NNS
,/,
calls/VBZ
it/PRP
``/``
a/DT
piece/NN
of/IN
fiction/NN
created/VBN
for/IN
this/DT
litigation/NN
./.
''/''
Mr./NNP
Daly/NNP
in/IN
his/PRP$
affidavit/NN
acknowledges/VBZ
that/IN
Warner/NNP
agreed/VBD
to/TO
release/VB
the/DT
producers/NNS
last/JJ
year/NN
to/TO
take/VB
over/IN
MGM/NNP
but/CC
says/VBZ
that/DT
situation/NN
was/VBD
altogether/RB
different/JJ
./.
For/IN
one/CD
thing/NN
,/,
according/VBG
to/TO
Mr./NNP
Daly/NNP
,/,
the/DT
producers/NNS
requested/VBD
a/DT
release/NN
in/IN
advance/NN
./.
Moreover/RB
,/,
the/DT
old/JJ
contract/NN
was/VBD
about/IN
to/TO
expire/VB
,/,
and/CC
the/DT
lineup/NN
of/IN
Guber/NNP
Peters/NNP
pictures/NNS
for/IN
Warner/NNP
was/VBD
n't/RB
as/RB
strong/JJ
as/IN
it/PRP
is/VBZ
now/RB
./.
Warner/NNP
itself/PRP
was/VBD
in/IN
negotiations/NNS
with/IN
MGM/NNP
over/IN
certain/JJ
movie/NN
and/CC
other/JJ
rights/NNS
,/,
and/CC
it/PRP
was/VBD
``/``
in/IN
Warner/NNP
's/POS
interest/NN
to/TO
accommodate/VB
MGM\/UA/NNP
,/,
Guber/NNP
and/CC
Peters/NNP
by/IN
permitting/VBG
them/PRP
to/TO
become/VB
MGM/NNP
executives/NNS
,/,
''/''
Mr./NNP
Daly/NNP
said/VBD
in/IN
his/PRP$
affidavit/NN
./.
Warner/NNP
obviously/RB
does/VBZ
n't/RB
think/VB
that/IN
it/PRP
is/VBZ
in/IN
its/PRP$
own/JJ
interests/NNS
to/TO
let/VB
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
go/VB
off/RP
to/TO
Columbia/NNP
./.
At/IN
the/DT
very/RB
least/JJS
,/,
Mr./NNP
Ross/NNP
clearly/RB
sees/VBZ
an/DT
opportunity/NN
to/TO
use/VB
the/DT
two/CD
men/NNS
to/TO
get/VB
a/DT
pound/NN
of/IN
flesh/NN
from/IN
Sony/NNP
./.
During/IN
settlement/NN
talks/NNS
,/,
for/IN
example/NN
,/,
Warner/NNP
demanded/VBD
such/JJ
things/NNS
as/IN
cable/NN
TV/NN
rights/NNS
to/TO
Columbia/NNP
movies/NNS
and/CC
Columbia/NNP
's/POS
interest/NN
in/IN
the/DT
studio/NN
it/PRP
jointly/RB
owns/VBZ
with/IN
Warner/NNP
,/,
according/VBG
to/TO
executives/NNS
involved/VBN
in/IN
the/DT
talks/NNS
./.
In/IN
any/DT
settlement/NN
,/,
Warner/NNP
is/VBZ
almost/RB
certain/JJ
to/TO
demand/VB
rights/NNS
to/TO
most/JJS
of/IN
the/DT
50/CD
or/CC
so/RB
projects/NNS
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
have/VBP
locked/VBN
up/RP
for/IN
the/DT
next/JJ
few/JJ
years/NNS
,/,
notably/RB
sequels/NNS
to/TO
``/``
Batman/NNP
./.
''/''
Mr./NNP
Guber/NNP
and/CC
Mr./NNP
Peters/NNP
refuse/VBP
to/TO
concede/VB
that/IN
they/PRP
may/MD
have/VB
made/VBN
a/DT
tactical/JJ
error/NN
in/IN
accepting/VBG
the/DT
Sony/NNP
offer/NN
before/IN
taking/VBG
it/PRP
up/IN
with/IN
Warner/NNP
./.
And/CC
they/PRP
say/VBP
there/EX
are/VBP
plenty/RB
of/IN
precedents/NNS
in/IN
Hollywood/NNP
for/IN
letting/VBG
people/NNS
out/IN
of/IN
contracts/NNS
./.
The/DT
last/JJ
time/NN
Columbia/NNP
Pictures/NNP
was/VBD
looking/VBG
for/IN
a/DT
studio/NN
chief/NN
,/,
they/PRP
note/VBP
,/,
Warner/NNP
released/VBD
producer/NN
David/NNP
Puttnam/NNP
from/IN
his/PRP$
contract/NN
,/,
then/RB
took/VBD
him/PRP
back/RB
after/IN
he/PRP
was/VBD
subsequently/RB
fired/VBN
by/IN
his/PRP$
bosses/NNS
at/IN
Columbia/NNP
./.
In/IN
his/PRP$
affidavit/NN
filed/VBD
yesterday/NN
,/,
Warner/NNP
's/POS
Mr./NNP
Ross/NNP
indicated/VBD
he/PRP
is/VBZ
n't/RB
buying/VBG
any/DT
such/JJ
argument/NN
:/:
``/``
If/IN
Sony/NNP
succeeds/VBZ
here/RB
,/,
no/DT
written/VBN
contract/NN
in/IN
Hollywood/NNP
will/MD
be/VB
worth/JJ
the/DT
paper/NN
it/PRP
's/VBZ
written/VBN
on/IN
./.
''/''
THE/DT
SALES/NNP
PITCH/NNP
could/MD
n't/RB
sound/VB
better/RBR
./.
First/RB
,/,
there/EX
's/VBZ
the/DT
name/NN
:/:
``/``
asset-backed/JJ
securities/NNS
./.
''/''
Better/RBR
than/IN
all/DT
those/DT
offers/NNS
you/PRP
get/VBP
to/TO
buy/VB
securities/NNS
backed/VBN
by/IN
nothing/NN
./.
And/CC
there/EX
's/VBZ
more/JJR
./.
The/DT
assets/NNS
backing/VBG
the/DT
securities/NNS
come/VBP
from/IN
some/DT
of/IN
the/DT
country/NN
's/POS
biggest/JJS
--/:
and/CC
most/RBS
secure/JJ
--/:
institutions/NNS
./.
Most/JJS
earn/VBP
high/JJ
ratings/NNS
from/IN
credit/NN
agencies/NNS
./.
Their/PRP$
yields/NNS
are/VBP
higher/JJR
than/IN
those/DT
of/IN
U.S./NNP
Treasury/NNP
issues/NNS
./.
And/CC
the/DT
booming/JJ
market/NN
has/VBZ
already/RB
attracted/VBN
many/JJ
of/IN
the/DT
nation/NN
's/POS
biggest/JJS
institutional/JJ
investors/NNS
./.
Ready/JJ
to/TO
jump/VB
?/.
Well/RB
,/,
think/VB
twice/RB
./.
The/DT
concept/NN
may/MD
be/VB
simple/JJ
:/:
Take/VB
a/DT
bunch/NN
of/IN
loans/NNS
,/,
tie/VB
them/PRP
up/RP
in/IN
one/CD
neat/JJ
package/NN
,/,
and/CC
sell/VB
pieces/NNS
of/IN
the/DT
package/NN
to/TO
investors/NNS
./.
But/CC
the/DT
simplicity/NN
may/MD
be/VB
misleading/VBG
./.
Skeptics/NNS
say/VBP
the/DT
slightly/RB
higher/JJR
returns/NNS
are/VBP
n't/RB
enough/JJ
to/TO
compensate/VB
for/IN
the/DT
extra/JJ
risk/NN
./.
They/PRP
warn/VBP
that/IN
asset-backed/JJ
securities/NNS
are/VBP
only/RB
as/RB
good/JJ
as/IN
the/DT
assets/NNS
and/CC
credit/NN
backing/NN
that/WDT
support/VBP
them/PRP
--/:
and/CC
those/DT
are/VBP
hard/JJ
to/TO
evaluate/VB
./.
Moreover/RB
,/,
the/DT
securities/NNS
were/VBD
introduced/VBN
only/RB
about/RB
4/CD
1\/2/CD
years/NNS
ago/RB
;/:
the/DT
biggest/JJS
unknown/NN
is/VBZ
how/WRB
they/PRP
will/MD
fare/VB
in/IN
a/DT
recession/NN
./.
``/``
A/DT
lot/NN
of/IN
this/DT
stuff/NN
really/RB
is/VBZ
in/IN
untested/JJ
waters/NNS
,/,
''/''
says/VBZ
Owen/NNP
Carney/NNP
,/,
director/NN
of/IN
the/DT
investment/NN
securities/NNS
division/NN
of/IN
the/DT
U.S./NNP
comptroller/NN
of/IN
the/DT
currency/NN
./.
``/``
We/PRP
do/VBP
n't/RB
know/VB
how/WRB
this/DT
whole/JJ
market/NN
will/MD
work/VB
in/IN
a/DT
serious/JJ
economic/JJ
downturn/NN
./.
''/''
Such/JJ
concerns/NNS
,/,
however/RB
,/,
have/VBP
n't/RB
stopped/VBN
asset-backed/JJ
securities/NNS
from/IN
becoming/VBG
one/CD
of/IN
Wall/NNP
Street/NNP
's/POS
hottest/JJS
new/JJ
products/NNS
./.
Since/IN
the/DT
spring/NN
of/IN
1985/CD
,/,
financial/JJ
alchemists/NNS
have/VBP
transformed/VBN
a/DT
wide/JJ
variety/NN
of/IN
debt/NN
into/IN
these/DT
new/JJ
securities/NNS
./.
They/PRP
have/VBP
sold/VBN
issues/NNS
backed/VBD
by/IN
car/NN
loans/NNS
,/,
boat/NN
loans/NNS
and/CC
recreational-vehicle/JJ
loans/NNS
./.
They/PRP
have/VBP
offered/VBN
bundles/NNS
of/IN
homeequity/NN
loans/NNS
,/,
as/RB
well/RB
as/IN
packages/NNS
of/IN
loans/NNS
used/VBN
to/TO
buy/VB
vacation/NN
time-shares/NNS
./.
Last/JJ
year/NN
,/,
there/EX
was/VBD
an/DT
issue/NN
of/IN
``/``
death-backed/JJ
bonds/NNS
''/''
--/:
securities/NNS
backed/VBN
by/IN
loans/NNS
to/TO
life-insurance/NN
policyholders/NNS
./.
Some/DT
predict/VBP
there/EX
will/MD
be/VB
``/``
Third/NNP
World/NNP
bonds/NNS
,/,
''/''
backed/VBN
by/IN
loans/NNS
to/TO
Brazil/NNP
,/,
Argentina/NNP
and/CC
other/JJ
debt-ridden/JJ
nations/NNS
./.
And/CC
the/DT
biggest/JJS
volume/NN
this/DT
year/NN
has/VBZ
been/VBN
on/IN
securities/NNS
backed/VBN
by/IN
credit-card/NN
receivables/NN
,/,
sometimes/RB
known/VBN
as/IN
``/``
plastic/JJ
bonds/NNS
./.
''/''
``/``
This/DT
is/VBZ
the/DT
heyday/NN
of/IN
debt/NN
,/,
''/''
says/VBZ
James/NNP
Grant/NNP
,/,
editor/NN
of/IN
Grant/NNP
's/POS
Interest/NNP
Rate/NNP
Observer/NNP
,/,
a/DT
newsletter/NN
./.
``/``
Before/RB
the/DT
sun/NN
sets/VBZ
on/IN
the/DT
'80s/CD
,/,
it/PRP
seems/VBZ
nothing/NN
will/MD
be/VB
left/VBN
unhocked/VBN
./.
''/''
The/DT
result/NN
is/VBZ
a/DT
$/$
45/CD
billion/CD
market/NN
,/,
according/VBG
to/TO
Securities/NNP
Data/NNP
Co/NNP
./.
That/DT
includes/VBZ
more/JJR
than/IN
$/$
9.5/CD
billion/CD
issued/VBD
through/IN
August/NNP
of/IN
this/DT
year/NN
,/,
up/RP
sharply/RB
from/IN
$/$
6.5/CD
billion/CD
in/IN
the/DT
comparable/JJ
1988/CD
period/NN
--/:
and/CC
more/JJR
than/IN
in/IN
all/DT
of/IN
1987/CD
./.
Most/JJS
issues/NNS
have/VBP
been/VBN
sold/VBN
to/TO
professional/JJ
money/NN
managers/NNS
,/,
pension/NN
funds/NNS
,/,
bank/NN
trust/NN
departments/NNS
and/CC
other/JJ
institutions/NNS
./.
But/CC
wealthy/JJ
individuals/NNS
also/RB
have/VBP
been/VBN
jumping/VBG
in/RP
,/,
and/CC
lately/RB
brokers/NNS
have/VBP
been/VBN
pushing/VBG
smaller/JJR
investors/NNS
into/IN
the/DT
asset-backed/JJ
market/NN
./.
The/DT
entry/NN
fee/NN
is/VBZ
affordable/JJ
:/:
Issues/NNS
typically/RB
are/VBP
sold/VBN
in/IN
minimum/NN
denominations/NNS
of/IN
$/$
1,000/CD
./.
``/``
We/PRP
expect/VBP
additional/JJ
offerings/NNS
''/''
of/IN
asset-backed/JJ
securities/NNS
targeted/VBN
toward/IN
individual/JJ
investors/NNS
,/,
says/VBZ
Bill/NNP
Addiss/NNP
,/,
a/DT
senior/JJ
vice/NN
president/NN
at/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc/NNP
./.
The/DT
process/NN
typically/RB
begins/VBZ
when/WRB
an/DT
institution/NN
,/,
such/JJ
as/IN
Citibank/NNP
or/CC
Sears/NNP
,/,
Roebuck/NNP
&/CC
Co./NNP
,/,
takes/VBZ
a/DT
pool/NN
of/IN
credit-card/NN
or/CC
other/JJ
receivables/NN
and/CC
sells/VBZ
them/PRP
to/TO
a/DT
specially/RB
created/VBN
trust/NN
./.
The/DT
trust/NN
then/RB
issues/VBZ
securities/NNS
--/:
generally/RB
due/JJ
in/IN
five/CD
years/NNS
or/CC
less/JJR
--/:
that/WDT
are/VBP
underwritten/JJ
by/IN
Wall/NNP
Street/NNP
brokerage/NN
firms/NNS
and/CC
offered/VBN
to/TO
investors/NNS
./.
Issues/NNS
typically/RB
come/VB
with/RP
``/``
credit/NN
enhancements/NNS
,/,
''/''
such/JJ
as/IN
a/DT
bank/NN
letter/NN
of/IN
credit/NN
,/,
and/CC
thus/RB
have/VBP
received/VBN
high/JJ
credit/NN
ratings/NNS
./.
Enthusiasts/NNS
say/VBP
the/DT
booming/JJ
market/NN
has/VBZ
opened/VBN
up/RP
a/DT
valuable/JJ
new/JJ
source/NN
of/IN
funds/NNS
to/TO
issuers/NNS
,/,
while/IN
providing/VBG
a/DT
valuable/JJ
new/JJ
investment/NN
for/IN
individuals/NNS
and/CC
institutions/NNS
./.
Asset-backed/JJ
securities/NNS
``/``
are/VBP
an/DT
attractive/JJ
investment/NN
compared/VBN
to/TO
bank/NN
certificates/NNS
of/IN
deposit/NN
or/CC
other/JJ
corporate/JJ
bonds/NNS
,/,
''/''
says/VBZ
Craig/NNP
J./NNP
Goldberg/NNP
,/,
managing/VBG
director/NN
and/CC
head/NN
of/IN
the/DT
asset-backed/JJ
securities/NNS
group/NN
at/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
./.
But/CC
skeptics/NNS
question/VBP
whether/IN
asset-backed/JJ
bonds/NNS
offer/VBP
sufficient/JJ
rewards/NNS
to/TO
compensate/VB
for/IN
the/DT
extra/JJ
risks/NNS
./.
Consider/VB
a/DT
$/$
500/CD
million/CD
offering/NN
of/IN
9/CD
%/NN
securities/NNS
issued/VBD
last/JJ
spring/NN
and/CC
backed/VBD
by/IN
Citibank/NNP
credit-card/NN
receivables/NN
./.
The/DT
triple-A-rated/JJ
issue/NN
offered/VBD
a/DT
yield/NN
of/IN
only/RB
about/RB
0.5/CD
percentage/NN
point/NN
above/IN
four-year/JJ
Treasury/NNP
issues/NNS
./.
On/IN
a/DT
$/$
10,000/CD
investment/NN
,/,
that/DT
's/VBZ
a/DT
difference/NN
of/IN
only/RB
$/$
50/CD
a/DT
year/NN
./.
That/DT
kind/NN
of/IN
spread/NN
can/MD
be/VB
critical/JJ
for/IN
money/NN
managers/NNS
who/WP
buy/VBP
bonds/NNS
in/IN
large/JJ
quantities/NNS
and/CC
whose/WP$
livelihood/NN
depends/VBZ
on/IN
outperforming/VBG
the/DT
money/NN
manager/NN
across/IN
the/DT
street/NN
./.
But/CC
for/IN
individuals/NNS
who/WP
buy/VBP
much/RB
smaller/JJR
amounts/NNS
and/CC
care/VBP
less/RBR
about/IN
relative/JJ
performance/NN
than/IN
in/IN
preserving/VBG
what/WP
they/PRP
have/VBP
,/,
that/DT
margin/NN
is/VBZ
meaningless/JJ
./.
``/``
If/IN
you/PRP
're/VBP
in/IN
the/DT
bond/NN
business/NN
playing/VBG
the/DT
relative-performance/JJ
derby/NN
,/,
then/RB
even/RB
an/DT
extra/JJ
25/CD
basis/NN
points/NNS
0.25/CD
percentage/NN
point/NN
an/DT
important/JJ
consideration/NN
on/IN
a/DT
career/NN
basis/NN
,/,
''/''
says/VBZ
Mr./NNP
Grant/NNP
./.
``/``
But/CC
if/IN
you/PRP
're/VBP
an/DT
individual/JJ
investing/VBG
money/NN
and/CC
trying/VBG
to/TO
get/VB
it/PRP
back/RB
again/RB
,/,
then/RB
that/IN
is/VBZ
n't/RB
of/IN
overwhelming/JJ
importance/NN
./.
''/''
Moreover/RB
,/,
the/DT
interest/NN
on/IN
asset-backed/JJ
securities/NNS
is/VBZ
fully/RB
taxable/JJ
,/,
while/IN
interest/NN
on/IN
Treasury/NNP
issues/NNS
is/VBZ
tax-free/JJ
at/IN
the/DT
state/NN
and/CC
local/JJ
level/NN
./.
That/DT
's/VBZ
why/WRB
some/DT
investment/NN
managers/NNS
,/,
such/JJ
as/IN
Alex/NNP
Powers/NNP
,/,
a/DT
vice/NN
president/NN
of/IN
Chase/NNP
Manhattan/NNP
Bank/NNP
's/POS
private/JJ
banking/NN
division/NN
,/,
do/VBP
n't/RB
recommend/VB
most/JJS
asset-backed/JJ
issues/NNS
for/IN
individuals/NNS
in/IN
high-tax/JJ
states/NNS
,/,
such/JJ
as/IN
New/NNP
York/NNP
or/CC
California/NNP
./.
But/CC
Mr./NNP
Powers/NNP
has/VBZ
purchased/VBN
asset-backed/JJ
issues/NNS
for/IN
individuals/NNS
with/IN
tax-deferred/JJ
accounts/NNS
,/,
such/JJ
as/IN
retirement/NN
plans/NNS
./.
He/PRP
points/VBZ
out/RP
that/IN
institutions/NNS
buying/VBG
asset-backed/JJ
issues/NNS
in/IN
large/JJ
quantities/NNS
can/MD
earn/VB
higher/JJR
spreads/NNS
over/IN
Treasurys/NNPS
than/IN
individuals/NNS
buying/VBG
smaller/JJR
amounts/NNS
./.
Another/DT
concern/NN
is/VBZ
liquidity/NN
,/,
or/CC
how/WRB
easily/RB
a/DT
security/NN
can/MD
be/VB
converted/VBN
into/IN
cash/NN
./.
The/DT
secondary/JJ
,/,
or/CC
resale/NN
,/,
market/NN
for/IN
asset-backed/JJ
securities/NNS
is/VBZ
relatively/RB
new/JJ
and/CC
much/RB
less/RBR
active/JJ
than/IN
for/IN
Treasury/NNP
issues/NNS
./.
That/DT
could/MD
make/VB
it/PRP
tricky/JJ
for/IN
investors/NNS
who/WP
need/VBP
to/TO
sell/VB
their/PRP$
holdings/NNS
quickly/RB
before/IN
the/DT
securities/NNS
mature/VBP
./.
That/DT
's/VBZ
particularly/RB
true/JJ
,/,
analysts/NNS
say/VBP
,/,
for/IN
certain/JJ
of/IN
the/DT
securities/NNS
,/,
such/JJ
as/IN
those/DT
backed/VBN
by/IN
time-share/JJ
loans/NNS
./.
``/``
You/PRP
could/MD
see/VB
massive/JJ
gyrations/NNS
here/RB
because/IN
it/PRP
's/VBZ
such/JJ
a/DT
thinly/RB
traded/VBN
market/NN
,/,
''/''
says/VBZ
Jonathan/NNP
S./NNP
Paris/NNP
,/,
a/DT
vice/NN
president/NN
of/IN
European/NNP
Investors/NNP
Inc./NNP
,/,
a/DT
New/NNP
York/NNP
investment-management/JJ
firm/NN
./.
In/IN
addition/NN
,/,
an/DT
investor/NN
who/WP
wants/VBZ
to/TO
know/VB
the/DT
daily/JJ
value/NN
of/IN
Treasury/NNP
bonds/NNS
,/,
or/CC
corporate/JJ
bonds/NNS
traded/VBN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
can/MD
simply/RB
check/VB
newspaper/NN
listings/NNS
./.
There/EX
are/VBP
n't/RB
any/DT
such/JJ
listings/NNS
for/IN
asset-backed/JJ
securities/NNS
./.
Evaluating/VBG
asset-backed/JJ
securities/NNS
poses/VBZ
another/DT
problem/NN
./.
Investors/NNS
,/,
for/IN
instance/NN
,/,
may/MD
mistakenly/RB
assume/VB
that/IN
the/DT
bank/NN
or/CC
company/NN
that/WDT
originally/RB
held/VBD
the/DT
assets/NNS
is/VBZ
guaranteeing/VBG
the/DT
securities/NNS
./.
It/PRP
is/VBZ
n't/RB
./.
The/DT
front/JJ
cover/NN
of/IN
the/DT
prospectus/NN
for/IN
the/DT
Citibank/NNP
credit-card/NN
receivables/NN
offering/VBG
points/NNS
out/JJ
in/IN
bold/JJ
capital/NN
letters/NNS
that/IN
the/DT
certificates/NNS
represent/VBP
an/DT
interest/NN
only/RB
in/IN
the/DT
specially/RB
created/VBN
trust/NN
and/CC
``/``
do/VBP
not/RB
represent/VB
interests/NNS
in/IN
or/CC
obligations/NNS
of/IN
the/DT
banks/NNS
,/,
Citibank/NNP
N.A./NNP
,/,
Citicorp/NNP
or/CC
any/DT
affiliate/NN
thereof/RB
./.
''/''
In/IN
other/JJ
words/NNS
,/,
if/IN
there/EX
's/VBZ
a/DT
problem/NN
,/,
do/VBP
n't/RB
expect/VB
Citibank/NNP
to/TO
come/VB
to/TO
the/DT
rescue/NN
./.
The/DT
prospectus/NN
also/RB
notes/VBZ
that/IN
the/DT
securities/NNS
are/VBP
not/RB
guaranteed/VBN
by/IN
any/DT
government/NN
agency/NN
./.
That/IN
means/VBZ
investors/NNS
have/VBP
to/TO
focus/VB
on/IN
the/DT
quality/NN
of/IN
the/DT
debt/NN
that/WDT
lies/VBZ
beneath/IN
the/DT
securities/NNS
,/,
as/RB
well/RB
as/IN
on/IN
the/DT
credit/NN
enhancement/NN
for/IN
the/DT
issue/NN
and/CC
the/DT
credit/NN
ratings/NNS
the/DT
issue/NN
has/VBZ
received/VBN
./.
That/IN
also/RB
is/VBZ
n't/RB
easy/JJ
./.
Take/VB
the/DT
``/``
credit/NN
enhancements/NNS
,/,
''/''
which/WDT
typically/RB
include/VBP
a/DT
bank/NN
letter/NN
of/IN
credit/NN
or/CC
insurance/NN
from/IN
a/DT
bond-insurance/JJ
company/NN
./.
The/DT
letter/NN
of/IN
credit/NN
typically/RB
is/VBZ
not/RB
offered/VBN
by/IN
the/DT
bank/NN
selling/VBG
the/DT
assets/NNS
to/TO
back/VB
the/DT
securities/NNS
./.
Nor/CC
does/VBZ
it/PRP
cover/VB
the/DT
entire/JJ
portfolio/NN
./.
Details/NNS
of/IN
credit/NN
enhancements/NNS
vary/VBP
widely/RB
from/IN
issue/NN
to/TO
issue/NN
./.
Still/RB
,/,
they/PRP
play/VBP
a/DT
crucial/JJ
role/NN
in/IN
winning/VBG
top/JJ
ratings/NNS
for/IN
most/JJS
asset-backed/JJ
issues/NNS
--/:
which/WDT
in/IN
turn/NN
is/VBZ
why/WRB
the/DT
yield/NN
above/IN
Treasurys/NNPS
is/VBZ
so/RB
slim/JJ
./.
But/CC
skeptics/NNS
ask/VBP
why/WRB
you/PRP
should/MD
bother/VB
buying/VBG
this/DT
stuff/NN
when/WRB
you/PRP
can/MD
get/VB
only/RB
slightly/RB
lower/JJR
yields/NNS
on/IN
government-guaranteed/JJ
paper/NN
./.
When/WRB
you/PRP
buy/VBP
an/DT
asset-backed/JJ
issue/NN
,/,
you/PRP
take/VBP
the/DT
risk/NN
that/IN
a/DT
bank/NN
or/CC
an/DT
insurer/NN
could/MD
run/VB
into/IN
unexpected/JJ
difficulties/NNS
./.
If/IN
a/DT
bank/NN
's/POS
credit/NN
rating/NN
was/VBD
lowered/VBN
because/RB
of/IN
,/,
say/VB
,/,
its/PRP$
loans/NNS
to/TO
Third/JJ
World/NNP
nations/NNS
,/,
that/WDT
could/MD
also/RB
affect/VB
the/DT
ratings/NNS
,/,
liquidity/NN
and/CC
prices/NNS
of/IN
the/DT
asset-backed/JJ
issues/NNS
that/IN
the/DT
bank/NN
supports/VBZ
./.
Underwriters/NNS
insist/VBP
these/DT
issues/NNS
are/VBP
constructed/VBN
to/TO
withstand/VB
extremely/RB
tough/JJ
economic/JJ
conditions/NNS
./.
But/CC
despite/IN
the/DT
credit/NN
enhancements/NNS
,/,
despite/IN
the/DT
high/JJ
ratings/NNS
,/,
some/DT
money/NN
managers/NNS
still/RB
worry/VBP
that/IN
a/DT
recession/NN
could/MD
wreak/VB
havoc/NN
on/IN
the/DT
underlying/VBG
assets/NNS
./.
At/IN
a/DT
time/NN
when/WRB
Americans/NNS
are/VBP
leveraged/JJ
to/TO
their/PRP$
eyeballs/NNS
,/,
asset-backed/JJ
investors/NNS
may/MD
be/VB
taking/VBG
a/DT
heady/JJ
gamble/NN
that/IN
consumers/NNS
will/MD
be/VB
able/JJ
to/TO
repay/VB
loans/NNS
in/IN
hard/JJ
times/NNS
./.
At/IN
the/DT
very/RB
least/JJS
,/,
a/DT
recession/NN
would/MD
prompt/VB
investors/NNS
to/TO
buy/VB
the/DT
highest-quality/JJ
bonds/NNS
they/PRP
can/MD
find/VB
--/:
that/DT
is/VBZ
,/,
Treasurys/NNPS
./.
That/DT
could/MD
widen/VB
the/DT
yield/NN
spread/VBN
between/IN
Treasurys/NNPS
and/CC
asset-backed/JJ
securities/NNS
,/,
as/RB
well/RB
as/IN
make/VB
it/PRP
tougher/JJR
to/TO
unload/VB
the/DT
latter/JJ
./.
But/CC
it/PRP
could/MD
be/VB
much/RB
worse/JJR
./.
Some/DT
analysts/NNS
are/VBP
especially/RB
wary/JJ
of/IN
credit-card/NN
issues/NNS
./.
For/IN
one/CD
thing/NN
,/,
credit-card/NN
loans/NNS
are/VBP
unsecured/JJ
./.
In/IN
addition/NN
,/,
they/PRP
fear/VBP
that/IN
banks/NNS
have/VBP
been/VBN
overeager/JJ
to/TO
issue/VB
cards/NNS
to/TO
the/DT
public/NN
--/:
giving/VBG
cards/NNS
to/TO
too/RB
many/JJ
big/JJ
spenders/NNS
who/WP
will/MD
default/VB
during/IN
a/DT
recession/NN
./.
``/``
A/DT
day/NN
of/IN
reckoning/NN
is/VBZ
coming/VBG
where/WRB
we/PRP
think/VBP
the/DT
market/NN
will/MD
place/VB
a/DT
high/JJ
premium/NN
on/IN
the/DT
highest-quality/JJ
debt/NN
issues/NNS
,/,
and/CC
therefore/RB
we/PRP
think/VBP
the/DT
best/JJS
debt/NN
investment/NN
is/VBZ
U.S./NNP
government/NN
bonds/NNS
,/,
''/''
says/VBZ
Craig/NNP
Corcoran/NNP
of/IN
Davis\/Zweig/NNP
Futures/NNP
Inc./NNP
,/,
an/DT
investment/NN
advisory/JJ
firm/NN
./.
What/WP
about/IN
triple-A-rated/JJ
asset-backed/JJ
issues/NNS
?/.
``/``
Nope/UH
,/,
we/PRP
still/RB
say/VBP
to/TO
stick/VB
with/IN
Treasurys/NNPS
,/,
''/''
Mr./NNP
Corcoran/NNP
replies/VBZ
./.
Ratings/NNS
,/,
he/PRP
notes/VBZ
,/,
``/``
are/VBP
subject/JJ
to/TO
change/VB
./.
''/''
All/DT
this/DT
makes/VBZ
asset-backed/JJ
securities/NNS
seem/VB
too/RB
risky/JJ
for/IN
many/JJ
people/NNS
./.
And/CC
it/PRP
reminds/VBZ
Raymond/NNP
F./NNP
DeVoe/NNP
Jr./NNP
,/,
a/DT
market/NN
strategist/NN
at/IN
Legg/NNP
Mason/NNP
Wood/NNP
Walker/NNP
Inc./NNP
,/,
of/IN
what/WP
he/PRP
calls/VBZ
``/``
DeVoe/NNP
's/POS
Unprovable/JJ
but/CC
Highly/NNP
Probable/NNP
Theory/NNP
No./NN
1/CD
:/:
``/``
More/JJR
money/NN
has/VBZ
been/VBN
lost/VBN
reaching/VBG
for/IN
yield/NN
than/IN
in/IN
all/DT
the/DT
stock/NN
speculations/NNS
,/,
scams/NNS
and/CC
frauds/NNS
of/IN
all/DT
time/NN
./.
''/''
Mr./NNP
Herman/NNP
is/VBZ
a/DT
staff/NN
reporter/NN
in/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
's/POS
New/NNP
York/NNP
bureau/NN
./.
Volume/NN
of/IN
asset-backed/JJ
securities/NNS
issued/VBN
annually/RB
\*/SYM
Principal/NN
amount/NN
\*\*/SYM
As/IN
of/IN
August/NNP
30/CD
\*/SYM
Principal/NN
amount/NN
Source/NN
:/:
Securities/NNP
Data/NNP
Co/NNP
./.
IF/IN
YOU/PRP
FORCE/VBP
financial/JJ
planners/NNS
to/TO
sum/VB
up/RP
their/PRP$
most/RBS
important/JJ
advice/NN
in/IN
a/DT
single/JJ
sentence/NN
,/,
it/PRP
would/MD
probably/RB
be/VB
a/DT
one-word/JJ
sentence/NN
:/:
Diversify/VB
./.
Judging/VBG
by/IN
a/DT
poll/NN
of/IN
Wall/NNP
Street/NNP
Journal/NNP
readers/NNS
conducted/VBN
this/DT
summer/NN
by/IN
Erdos/NNP
&/CC
Morgan/NNP
Inc./NNP
,/,
serious/JJ
investors/NNS
have/VBP
taken/VBN
that/DT
advice/NN
to/TO
heart/NN
./.
Nearly/RB
1,000/CD
investors/NNS
responded/VBN
to/TO
the/DT
Journal/NNP
's/POS
poll/NN
,/,
providing/VBG
an/DT
in-depth/JJ
look/NN
at/IN
their/PRP$
portfolios/NNS
./.
Those/DT
portfolios/NNS
are/VBP
remarkably/RB
diversified/VBN
./.
By/IN
spreading/VBG
their/PRP$
wealth/NN
among/IN
several/JJ
investment/NN
alternatives/NNS
,/,
the/DT
respondents/NNS
have/VBP
protected/VBN
themselves/PRP
against/IN
squalls/NNS
in/IN
any/DT
one/CD
area/NN
,/,
be/VB
it/PRP
stocks/NNS
,/,
bonds/NNS
or/CC
real/JJ
estate/NN
./.
For/IN
example/NN
,/,
about/RB
88/CD
%/NN
of/IN
Journal/NNP
readers/NNS
owned/VBD
stock/NN
91/CD
%/NN
in/IN
a/DT
similar/JJ
poll/NN
last/JJ
year/NN
But/CC
only/RB
17.5/CD
%/NN
said/VBD
they/PRP
had/VBD
more/JJR
than/IN
half/PDT
their/PRP$
money/NN
in/IN
the/DT
stock/NN
market/NN
./.
Similarly/RB
,/,
57/CD
%/NN
of/IN
respondents/NNS
own/JJ
shares/NNS
in/IN
a/DT
money-market/JJ
mutual/JJ
fund/NN
,/,
and/CC
33/CD
%/NN
own/JJ
municipal/JJ
bonds/NNS
./.
But/CC
only/RB
6/CD
%/NN
to/TO
7/CD
%/NN
of/IN
the/DT
investors/NNS
were/VBD
committing/VBG
more/JJR
than/IN
half/PDT
their/PRP$
funds/NNS
to/TO
either/DT
of/IN
those/DT
alternatives/NNS
./.
The/DT
poll/NN
,/,
conducted/VBD
Aug./NNP
7-28/CD
,/,
also/RB
provides/VBZ
a/DT
glimpse/NN
into/IN
the/DT
thinking/NN
of/IN
serious/JJ
investors/NNS
on/IN
a/DT
variety/NN
of/IN
other/JJ
topics/NNS
./.
It/PRP
found/VBD
them/PRP
in/IN
a/DT
cautious/JJ
,/,
but/CC
not/RB
downbeat/JJ
,/,
mood/NN
./.
Of/IN
1,500/CD
people/NNS
sent/VBN
a/DT
questionnaire/NN
,/,
951/CD
replied/VBD
./.
The/DT
response/NN
rate/NN
,/,
more/JJR
than/IN
63/CD
%/NN
,/,
allows/VBZ
the/DT
results/NNS
to/TO
be/VB
interpreted/VBN
with/IN
a/DT
high/JJ
degree/NN
of/IN
confidence/NN
./.
The/DT
results/NNS
ca/MD
n't/RB
be/VB
extrapolated/VBN
to/TO
all/DT
investors/NNS
,/,
though/RB
./.
Journal/NNP
readers/NNS
are/VBP
relatively/RB
affluent/JJ
,/,
with/IN
a/DT
median/JJ
household/NN
income/NN
of/IN
between/IN
$/$
75,000/CD
and/CC
$/$
99,000/CD
./.
Nearly/RB
half/NN
of/IN
the/DT
respondents/NNS
47/CD
%/NN
their/PRP$
investment/NN
portfolio/NN
was/VBD
worth/JJ
$/$
250,000/CD
or/CC
more/JJR
,/,
and/CC
17/CD
%/NN
said/VBD
it/PRP
was/VBD
worth/JJ
$/$
1/CD
million/CD
or/CC
more/JJR
./.
The/DT
respondents/NNS
were/VBD
mildly/RB
optimistic/JJ
about/IN
the/DT
economy/NN
and/CC
investment/NN
markets/NNS
,/,
but/CC
their/PRP$
collective/JJ
judgments/NNS
were/VBD
a/DT
notch/NN
more/RBR
sober/JJ
than/IN
they/PRP
were/VBD
a/DT
year/NN
ago/RB
./.
For/IN
example/NN
,/,
12/CD
%/NN
of/IN
this/DT
year/NN
's/POS
respondents/NNS
said/VBD
they/PRP
expect/VBP
a/DT
recession/NN
within/IN
12/CD
months/NNS
./.
Last/JJ
year/NN
,/,
only/RB
8/CD
%/NN
were/VBD
expecting/VBG
a/DT
recession/NN
./.
An/DT
additional/JJ
56/CD
%/NN
of/IN
this/DT
year/NN
's/POS
respondents/NNS
expect/VBP
the/DT
economy/NN
to/TO
slow/VB
down/RP
during/IN
the/DT
next/JJ
12/CD
months/NNS
./.
Only/RB
42/CD
%/NN
of/IN
last/JJ
year/NN
's/POS
respondents/NNS
anticipated/VBD
slowing/VBG
growth/NN
./.
Apparently/RB
,/,
the/DT
respondents/NNS
do/VBP
n't/RB
think/VB
that/IN
an/DT
economic/JJ
slowdown/NN
would/MD
harm/VB
the/DT
major/JJ
investment/NN
markets/NNS
very/RB
much/RB
./.
A/DT
slim/JJ
majority/NN
51/CD
%/NN
stock/NN
prices/NNS
will/MD
be/VB
higher/JJR
in/IN
August/NNP
1990/CD
than/IN
they/PRP
were/VBD
in/IN
August/NNP
1989/CD
./.
Their/PRP$
verdict/NN
on/IN
real/JJ
estate/NN
is/VBZ
almost/RB
the/DT
same/JJ
./.
Some/DT
50/CD
%/NN
expect/VBP
real/JJ
estate/NN
in/IN
their/PRP$
local/JJ
area/NN
to/TO
increase/VB
in/IN
value/NN
over/IN
the/DT
next/JJ
12/CD
months/NNS
./.
By/IN
contrast/NN
,/,
only/RB
32/CD
%/NN
expect/VBP
an/DT
increase/NN
in/IN
the/DT
price/NN
of/IN
gold/NN
./.
Since/IN
gold/NN
tends/VBZ
to/TO
soar/VB
when/WRB
inflation/NN
is/VBZ
high/JJ
,/,
that/DT
finding/NN
suggests/VBZ
that/IN
people/NNS
believe/VBP
inflation/NN
remains/VBZ
under/IN
control/NN
./.
Even/RB
though/IN
only/RB
12/CD
%/NN
actually/RB
predicted/VBD
a/DT
recession/NN
,/,
many/JJ
respondents/NNS
were/VBD
taking/VBG
a/DT
better-safe-than/JJ
sorry/JJ
investment/NN
stance/NN
./.
Nearly/RB
a/DT
third/JJ
said/VBD
they/PRP
have/VBP
made/VBN
some/DT
portfolio/NN
changes/NNS
to/TO
anticipate/VB
a/DT
possible/JJ
recession/NN
./.
For/IN
the/DT
most/JJS
part/NN
,/,
the/DT
changes/NNS
were/VBD
``/``
slight/JJ
./.
''/''
The/DT
two-thirds/NNS
who/WP
have/VBP
n't/RB
tried/VBN
to/TO
make/VB
their/PRP$
portfolios/NNS
more/RBR
recession-resistant/JJ
were/VBD
split/VBN
about/RB
evenly/RB
between/IN
investors/NNS
who/WP
``/``
do/VBP
n't/RB
believe/VB
in/IN
trying/VBG
to/TO
predict/VB
the/DT
markets/NNS
''/''
(/(
about/RB
31/CD
%/NN
investors/NNS
who/WP
``/``
do/VBP
n't/RB
expect/VB
a/DT
recession/NN
''/''
(/(
about/RB
15/CD
%/NN
unsure/JJ
if/IN
and/CC
when/WRB
a/DT
recession/NN
might/MD
come/VB
''/''
(/(
about/RB
22/CD
%/NN
A/DT
buy-and-hold/JJ
approach/NN
to/TO
stocks/NNS
continues/VBZ
to/TO
be/VB
the/DT
rule/NN
among/IN
respondents/NNS
./.
Most/JJS
own/VBP
two/CD
to/TO
10/CD
stocks/NNS
,/,
and/CC
buy/VBP
or/CC
sell/VBP
no/RB
more/JJR
than/IN
three/CD
times/NNS
a/DT
year/NN
./.
Some/DT
71/CD
%/NN
had/VBD
bought/VBN
some/DT
stock/NN
in/IN
the/DT
past/JJ
year/NN
;/:
only/RB
57/CD
%/NN
had/VBD
sold/VBN
any/DT
./.
But/CC
the/DT
lurking/VBG
shadow/NN
of/IN
1987/CD
's/POS
stock-market/NN
crash/NN
still/RB
seems/VBZ
dark/JJ
./.
About/RB
33/CD
%/NN
considered/VBD
another/DT
crash/NN
``/``
likely/RB
,/,
''/''
while/IN
about/RB
63/CD
%/NN
said/VBD
one/CD
is/VBZ
``/``
unlikely/JJ
./.
''/''
Those/DT
percentages/NNS
hardly/RB
changed/VBD
from/IN
the/DT
previous/JJ
year/NN
's/POS
poll/NN
./.
And/CC
the/DT
respondents/NNS
'/POS
commitment/NN
to/TO
the/DT
stock/NN
market/NN
remains/VBZ
somewhat/RB
lighter/JJR
than/IN
usual/JJ
./.
About/RB
60/CD
%/NN
of/IN
them/PRP
said/VBD
they/PRP
would/MD
``/``
ordinarily/RB
''/''
have/VB
at/IN
least/JJS
25/CD
%/NN
of/IN
their/PRP$
money/NN
in/IN
stocks/NNS
./.
But/CC
as/IN
of/IN
August/NNP
,/,
only/RB
50/CD
%/NN
actually/RB
had/VBD
stock-market/JJ
investments/NNS
of/IN
that/DT
size/NN
./.
Most/JJS
stock-market/NN
indexes/NNS
were/VBD
hitting/VBG
all-time/JJ
highs/NNS
at/IN
around/IN
the/DT
time/NN
of/IN
the/DT
poll/NN
./.
But/CC
it/PRP
appears/VBZ
that/IN
many/JJ
Journal/NNP
readers/NNS
were/VBD
taking/VBG
that/DT
news/NN
as/IN
a/DT
sign/NN
to/TO
be/VB
cautious/JJ
,/,
rather/RB
than/IN
a/DT
signal/NN
to/TO
jump/VB
on/IN
the/DT
bandwagon/NN
./.
Mr./NNP
Dorfman/NNP
covers/VBZ
investing/NN
issues/NNS
from/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
's/POS
New/NNP
York/NNP
bureau/NN
./.
Canadian/JJ
steel/NN
ingot/NN
production/NN
totaled/VBD
276,334/CD
metric/JJ
tons/NNS
in/IN
the/DT
week/NN
ended/VBN
Oct./NNP
14/CD
,/,
down/RB
5.3/CD
%/NN
from/IN
the/DT
preceding/VBG
week/NN
's/POS
total/NN
of/IN
291,890/CD
tons/NNS
,/,
Statistics/NNP
Canada/NNP
,/,
a/DT
federal/JJ
agency/NN
,/,
said/VBD
./.
The/DT
week/NN
's/POS
total/NN
was/VBD
down/RB
7.1/CD
%/NN
from/IN
297,446/CD
tons/NNS
a/DT
year/NN
earlier/RBR
./.
A/DT
metric/JJ
ton/NN
is/VBZ
equal/JJ
to/TO
2,204.62/CD
pounds/NNS
./.
The/DT
cumulative/JJ
total/NN
in/IN
1989/CD
was/VBD
12,283,217/CD
tons/NNS
,/,
up/RB
7.5/CD
%/NN
from/IN
11,429,243/CD
tons/NNS
a/DT
year/NN
earlier/RBR
./.
Health/NNP
Care/NNP
Property/NNP
Investors/NNP
Inc./NNP
said/VBD
it/PRP
acquired/VBD
three/CD
long-term/JJ
care/NN
facilities/NNS
and/CC
one/CD
assisted-living/JJ
facility/NN
in/IN
a/DT
purchase-and-lease/JJ
transaction/NN
valued/VBN
at/IN
$/$
15/CD
million/CD
./.
The/DT
real/JJ
estate/NN
investment/NN
trust/NN
said/VBD
that/IN
it/PRP
leased/VBD
the/DT
three/CD
Florida/NNP
facilities/NNS
to/TO
National/NNP
Health/NNP
Care/NNP
Affiliates/NNP
Inc./NNP
of/IN
Buffalo/NNP
,/,
N.Y/NNP
./.
Health/NNP
Care/NNP
Property/NNP
holds/VBZ
an/DT
interest/NN
in/IN
139/CD
facilities/NNS
in/IN
30/CD
states/NNS
./.
Moody/NNP
's/POS
Investors/NNP
Service/NNP
said/VBD
it/PRP
lowered/VBD
its/PRP$
rating/NN
on/IN
about/RB
$/$
75/CD
million/CD
of/IN
this/DT
Chatsworth/NNP
,/,
Calif./NNP
,/,
concern/NN
's/POS
convertible/JJ
subordinated/VBN
debentures/NNS
,/,
due/RB
2012/CD
,/,
to/TO
Caa/NNP
from/IN
B2/NN
./.
It/PRP
said/VBD
the/DT
reduction/NN
reflects/VBZ
impaired/VBN
business/NN
prospects/NNS
and/CC
reduced/VBN
financial/JJ
flexibility/NN
caused/VBN
by/IN
continuing/VBG
losses/NNS
at/IN
the/DT
maker/NN
of/IN
Winchester/NNP
disk/NN
drives/NNS
./.
VALLEY/NNP
National/NNP
Corp./NNP
--/:
Moody/NNP
's/POS
Investors/NNP
Service/NNP
Inc./NNP
said/VBD
it/PRP
lowered/VBD
its/PRP$
rating/NN
on/IN
about/RB
$/$
400/CD
million/CD
of/IN
this/DT
bank/NN
holding/VBG
company/NN
's/POS
senior/JJ
debt/NN
to/TO
B2/NN
from/IN
Ba3/NN
./.
Moody/NNP
's/VBZ
said/VBD
it/PRP
expects/VBZ
Valley/NNP
National/NNP
,/,
of/IN
Phoenix/NNP
,/,
Ariz./NNP
,/,
to/TO
make/VB
substantial/JJ
further/JJ
provisions/NNS
against/IN
its/PRP$
real-estate/NN
portfolio/NN
,/,
and/CC
that/IN
it/PRP
continues/VBZ
to/TO
suffer/VB
from/IN
the/DT
high/JJ
cost/NN
of/IN
carrying/VBG
nonperforming/VBG
assets/NNS
,/,
and/CC
from/IN
high/JJ
loan-loss/JJ
provisions/NNS
./.
Electronic/JJ
theft/NN
by/IN
foreign/JJ
and/CC
industrial/JJ
spies/NNS
and/CC
disgruntled/VBN
employees/NNS
is/VBZ
costing/VBG
U.S./NNP
companies/NNS
billions/NNS
and/CC
eroding/VBG
their/PRP$
international/JJ
competitive/JJ
advantage/NN
./.
That/DT
was/VBD
the/DT
message/NN
delivered/VBN
by/IN
government/NN
and/CC
private/JJ
security/NN
experts/NNS
at/IN
an/DT
all-day/JJ
conference/NN
on/IN
corporate/JJ
electronic/JJ
espionage/NN
./.
``/``
Hostile/JJ
and/CC
even/RB
friendly/JJ
nations/NNS
routinely/RB
steal/VBP
information/NN
from/IN
U.S./NNP
companies/NNS
and/CC
share/VBP
it/PRP
with/IN
their/PRP$
own/JJ
companies/NNS
,/,
''/''
said/VBD
Noel/NNP
D./NNP
Matchett/NNP
,/,
a/DT
former/JJ
staffer/NN
at/IN
the/DT
federal/JJ
National/NNP
Security/NNP
Agency/NNP
and/CC
now/RB
president/NN
of/IN
Information/NNP
Security/NNP
Inc./NNP
,/,
Silver/NNP
Spring/NNP
,/,
Md/NNP
./.
It/PRP
``/``
may/MD
well/RB
be/VB
''/''
that/IN
theft/NN
of/IN
business/NN
data/NNS
is/VBZ
``/``
as/RB
serious/JJ
a/DT
strategic/JJ
threat/NN
to/TO
national/JJ
security/NN
''/''
as/IN
it/PRP
is/VBZ
a/DT
threat/NN
to/TO
the/DT
survival/NN
of/IN
victimized/VBN
U.S./NNP
firms/NNS
,/,
said/VBD
Michelle/NNP
Van/NNP
Cleave/NNP
,/,
the/DT
White/NNP
House/NNP
's/POS
assistant/JJ
director/NN
for/IN
National/NNP
Security/NNP
Affairs/NNP
./.
The/DT
conference/NN
was/VBD
jointly/RB
sponsored/VBN
by/IN
the/DT
New/NNP
York/NNP
Institute/NNP
of/IN
Technology/NNP
School/NNP
of/IN
Management/NNP
and/CC
the/DT
Armed/NNP
Forces/NNP
Communications/NNP
and/CC
Electronics/NNP
Association/NNP
,/,
a/DT
joint/JJ
industry-government/NN
trade/NN
group/NN
./.
Any/DT
secret/NN
can/MD
be/VB
pirated/VBN
,/,
the/DT
experts/NNS
said/VBD
,/,
if/IN
it/PRP
is/VBZ
transmitted/VBN
over/IN
the/DT
air/NN
./.
Even/RB
rank/NN
amateurs/NNS
can/MD
do/VB
it/PRP
if/IN
they/PRP
spend/VBP
a/DT
few/JJ
thousand/CD
dollars/NNS
for/IN
a/DT
commercially/RB
available/JJ
microwave/NN
receiver/NN
with/IN
amplifier/NN
and/CC
a/DT
VCR/NNP
recorder/NN
./.
They/PRP
need/VBP
only/RB
position/VB
themselves/PRP
near/IN
a/DT
company/NN
's/POS
satellite/NN
dish/NN
and/CC
wait/VB
./.
``/``
You/PRP
can/MD
have/VB
a/DT
dozen/NN
competitors/NNS
stealing/VBG
your/PRP$
secrets/NNS
at/IN
the/DT
same/JJ
time/NN
,/,
''/''
Mr./NNP
Matchett/NNP
said/VBD
,/,
adding/VBG
:/:
``/``
It/PRP
's/VBZ
a/DT
pretty/RB
good/JJ
bet/NN
they/PRP
wo/MD
n't/RB
get/VB
caught/VBN
./.
''/''
The/DT
only/JJ
way/NN
to/TO
catch/VB
an/DT
electronic/JJ
thief/NN
,/,
he/PRP
said/VBD
,/,
is/VBZ
to/TO
set/VB
him/PRP
up/RP
with/IN
erroneous/JJ
information/NN
./.
Even/RB
though/IN
electronic/JJ
espionage/NN
may/MD
cost/VB
U.S./NNP
firms/NNS
billions/NNS
of/IN
dollars/NNS
a/DT
year/NN
,/,
most/JJS
are/VBP
n't/RB
yet/RB
taking/VBG
precautions/NNS
,/,
the/DT
experts/NNS
said/VBD
./.
By/IN
contrast/NN
,/,
European/JJ
firms/NNS
will/MD
spend/VB
$/$
150/CD
million/CD
this/DT
year/NN
on/IN
electronic/JJ
security/NN
,/,
and/CC
are/VBP
expected/VBN
to/TO
spend/VB
$/$
1/CD
billion/CD
by/IN
1992/CD
./.
Already/RB
many/DT
foreign/JJ
firms/NNS
,/,
especially/RB
banks/NNS
,/,
have/VBP
their/PRP$
own/JJ
cryptographers/NNS
,/,
conference/NN
speakers/NNS
reported/VBD
./.
Still/RB
,/,
encrypting/VBG
corporate/JJ
communications/NNS
is/VBZ
only/RB
a/DT
partial/JJ
remedy/NN
./.
One/CD
expert/NN
,/,
whose/WP$
job/NN
is/VBZ
so/RB
politically/RB
sensitive/JJ
that/IN
he/PRP
spoke/VBD
on/IN
condition/NN
that/IN
he/PRP
would/MD
n't/RB
be/VB
named/VBN
or/CC
quoted/VBN
,/,
said/VBD
the/DT
expected/VBN
influx/NN
of/IN
East/JJ
European/JJ
refugees/NNS
over/IN
the/DT
next/JJ
few/JJ
years/NNS
will/MD
greatly/RB
increase/VB
the/DT
chances/NNS
of/IN
computer-maintenance/JJ
workers/NNS
,/,
for/IN
example/NN
,/,
doubling/VBG
as/IN
foreign/JJ
spies/NNS
./.
Moreover/RB
,/,
he/PRP
said/VBD
,/,
technology/NN
now/RB
exists/VBZ
for/IN
stealing/VBG
corporate/JJ
secrets/NNS
after/IN
they/PRP
've/VBP
been/VBN
``/``
erased/VBN
''/''
from/IN
a/DT
computer/NN
's/POS
memory/NN
./.
He/PRP
said/VBD
that/IN
Oliver/NNP
North/NNP
of/IN
Iran-Contra/NNP
notoriety/NN
thought/VBD
he/PRP
had/VBD
erased/VBN
his/PRP$
computer/NN
but/CC
that/IN
the/DT
information/NN
was/VBD
later/RB
retrieved/VBN
for/IN
congressional/JJ
committees/NNS
to/TO
read/VB
./.
No/DT
personal/JJ
computer/NN
,/,
not/RB
even/RB
the/DT
one/CD
on/IN
a/DT
chief/JJ
executive/NN
's/POS
desk/NN
,/,
is/VBZ
safe/JJ
,/,
this/DT
speaker/NN
noted/VBD
./.
W./NNP
Mark/NNP
Goode/NNP
,/,
president/NN
of/IN
Micronyx/NNP
Inc./NNP
,/,
a/DT
Richardson/NNP
,/,
Texas/NNP
,/,
firm/NN
that/WDT
makes/VBZ
computer-security/JJ
products/NNS
,/,
provided/VBD
a/DT
new/JJ
definition/NN
for/IN
Mikhail/NNP
Gorbachev/NNP
's/POS
campaign/NN
for/IN
greater/JJR
openness/NN
,/,
known/VBN
commonly/RB
as/IN
glasnost/FW
./.
Under/IN
Mr./NNP
Gorbachev/NNP
,/,
Mr./NNP
Goode/NNP
said/VBD
,/,
the/DT
Soviets/NNS
are/VBP
openly/RB
stealing/VBG
Western/JJ
corporate/JJ
communications/NNS
./.
He/PRP
cited/VBD
the/DT
case/NN
of/IN
a/DT
Swiss/JJ
oil/NN
trader/NN
who/WP
recently/RB
put/VBD
out/RP
bids/NNS
via/IN
telex/NN
for/IN
an/DT
oil/NN
tanker/NN
to/TO
pick/VB
up/RP
a/DT
cargo/NN
of/IN
crude/NN
in/IN
the/DT
Middle/NNP
East/NNP
./.
Among/IN
the/DT
responses/NNS
the/DT
Swiss/JJ
trader/NN
got/VBD
was/VBD
one/CD
from/IN
the/DT
Soviet/JJ
national/JJ
shipping/NN
company/NN
,/,
which/WDT
had/VBD
n't/RB
been/VBN
invited/VBN
to/TO
submit/VB
a/DT
bid/NN
./.
The/DT
Soviets/NNS
'/POS
eavesdropping/NN
paid/VBD
off/RP
,/,
however/RB
,/,
because/IN
they/PRP
got/VBD
the/DT
contract/NN
./.
The/DT
University/NNP
of/IN
Toronto/NNP
stepped/VBD
deeper/RBR
into/IN
the/DT
contest/NN
for/IN
Connaught/NNP
BioSciences/NNP
Inc./NNP
by/IN
reaching/VBG
an/DT
unusual/JJ
agreement/NN
with/IN
Ciba-Geigy/NNP
Ltd./NNP
and/CC
Chiron/NNP
Corp/NNP
./.
The/DT
University/NNP
said/VBD
the/DT
two/CD
companies/NNS
agreed/VBD
to/TO
spend/VB
25/CD
million/CD
Canadian/JJ
dollars/NNS
$/$
21.3/CD
million/CD
10/CD
years/NNS
on/IN
research/NN
at/IN
Canadian/JJ
universities/NNS
if/IN
they/PRP
are/VBP
successful/JJ
in/IN
acquiring/VBG
the/DT
vaccine/NN
maker/NN
./.
It/PRP
said/VBD
$/$
10/CD
million/CD
would/MD
go/VB
to/TO
the/DT
University/NNP
of/IN
Toronto/NNP
./.
Ciba-Geigy/NNP
and/CC
Chiron/NNP
have/VBP
made/VBN
a/DT
joint/JJ
bid/NN
of/IN
C$/$
866/CD
million/CD
for/IN
Connaught/NNP
,/,
and/CC
Institut/NNP
Merieux/NNP
S.A./NNP
of/IN
France/NNP
has/VBZ
made/VBN
a/DT
rival/JJ
bid/NN
of/IN
C$/$
942/CD
million/CD
./.
The/DT
University/NNP
is/VBZ
seeking/VBG
an/DT
injunction/NN
against/IN
the/DT
Merieux/NNP
bid/NN
,/,
arguing/VBG
that/IN
Connaught/NNP
's/POS
predecessor/NN
company/NN
agreed/VBD
in/IN
1972/CD
that/IN
Connaught/NNP
's/POS
ownership/NN
would/MD
n't/RB
be/VB
transferred/VBN
to/TO
foreigners/NNS
./.
The/DT
university/NN
implied/VBD
that/IN
it/PRP
would/MD
drop/VB
its/PRP$
opposition/NN
to/TO
foreign/JJ
ownership/NN
if/IN
Ciba-Geigy/NNP
and/CC
Chiron/NNP
are/VBP
successful/JJ
with/IN
their/PRP$
lower/JJR
bid/NN
./.
It/PRP
said/VBD
the/DT
new/JJ
agreement/NN
would/MD
``/``
replace/VB
''/''
the/DT
old/JJ
one/CD
that/WDT
forms/VBZ
the/DT
basis/NN
of/IN
its/PRP$
suit/NN
against/IN
the/DT
Merieux/NNP
takeover/NN
./.
``/``
Notwithstanding/IN
foreign/JJ
ownership/NN
of/IN
Connaught/NNP
,/,
this/DT
accord/NN
would/MD
enhance/VB
research/NN
and/CC
development/NN
in/IN
Canada/NNP
,/,
''/''
said/VBD
James/NNP
Keffer/NNP
,/,
the/DT
university/NN
's/POS
vice/NN
president/NN
of/IN
research/NN
./.
Ciba-Geigy/NNP
is/VBZ
a/DT
Swiss/JJ
pharmaceutical/JJ
company/NN
and/CC
Chiron/NNP
is/VBZ
based/VBN
in/IN
Emeryville/NNP
,/,
Calif/NNP
./.
In/IN
a/DT
statement/NN
,/,
Jacques-Francois/NNP
Martin/NNP
,/,
director/NN
general/NN
of/IN
Merieux/NNP
,/,
said/VBD
the/DT
French/JJ
company/NN
is/VBZ
still/RB
determined/VBN
to/TO
acquire/VB
Connaught/NNP
./.
While/IN
he/PRP
did/VBD
n't/RB
comment/NN
directly/RB
on/IN
the/DT
pact/NN
between/IN
Ciba-Geigy/NNP
and/CC
the/DT
university/NN
,/,
he/PRP
said/VBD
Merieux/NNP
can/MD
transfer/VB
new/JJ
products/NNS
and/CC
technologies/NNS
to/TO
Connaught/NNP
more/RBR
rapidly/RB
than/IN
other/JJ
companies/NNS
``/``
not/RB
currently/RB
producing/VBG
and/CC
marketing/VBG
vaccines/NNS
who/WP
}/)
can/MD
only/RB
promise/VB
this/DT
for/IN
some/DT
.../:
years/NNS
in/IN
the/DT
future/NN
./.
''/''
In/IN
national/JJ
over-the-counter/JJ
trading/NN
yesterday/NN
,/,
Connaught/NNP
closed/VBD
at/IN
$/$
28.625/CD
,/,
up/IN
$/$
1.25/CD
./.
Microsoft/NNP
and/CC
other/JJ
software/NN
stocks/NNS
surged/VBD
,/,
leading/VBG
the/DT
Nasdaq/NNP
composite/JJ
index/NN
of/IN
over-the-counter/JJ
stocks/NNS
to/TO
its/PRP$
biggest/JJS
advance/NN
of/IN
the/DT
year/NN
on/IN
breathtaking/JJ
volume/NN
./.
Leading/VBG
the/DT
pack/NN
,/,
Microsoft/NNP
soared/VBD
3/CD
3\/4/CD
,/,
or/CC
4/CD
%/NN
,/,
to/TO
a/DT
record/NN
price/NN
of/IN
84/CD
1\/4/CD
on/IN
1.2/CD
million/CD
shares/NNS
./.
On/IN
the/DT
other/JJ
hand/NN
,/,
Valley/NNP
National/NNP
tumbled/VBD
24/CD
%/NN
after/IN
reporting/VBG
a/DT
sizable/JJ
third-quarter/JJ
loss/NN
./.
The/DT
Nasdaq/NNP
composite/NN
leaped/VBD
7.52/CD
points/NNS
,/,
or/CC
1.6/CD
%/NN
,/,
to/TO
470.80/CD
./.
Its/PRP$
largest/JJS
previous/JJ
rise/NN
this/DT
year/NN
came/VBD
Aug./NNP
7/CD
,/,
when/WRB
it/PRP
gained/VBD
4.31/CD
./.
The/DT
OTC/NNP
market/NN
's/POS
largest/JJS
stocks/NNS
soared/VBD
as/IN
well/RB
,/,
as/IN
the/DT
Nasdaq/NNP
100/CD
Index/NNP
jumped/VBD
10.01/CD
,/,
or/CC
2/CD
%/NN
,/,
to/TO
463.06/CD
./.
The/DT
Nasdaq/NNP
Financial/NNP
Index/NNP
rose/VBD
5.04/CD
,/,
or/CC
1.1/CD
%/NN
,/,
to/TO
460.33/CD
./.
By/IN
comparison/NN
,/,
the/DT
Dow/NNP
Jones/NNP
Industrials/NNP
and/CC
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
Composite/NNP
each/DT
rose/VBD
1.5/CD
%/NN
./.
Volume/NN
totaled/VBD
173.5/CD
million/CD
shares/NNS
,/,
30/CD
%/NN
above/IN
this/DT
year/NN
's/POS
average/JJ
daily/JJ
turnover/NN
on/IN
Nasdaq/NNP
./.
Among/IN
broader/JJR
Nasdaq/NNP
industry/NN
groups/NNS
,/,
the/DT
utility/NN
index/NN
gained/VBD
18.11/CD
to/TO
761.38/CD
./.
The/DT
transportation/NN
and/CC
insurance/NN
sectors/NNS
each/DT
posted/VBN
gains/NNS
of/IN
8.59/CD
,/,
with/IN
the/DT
transports/NNS
finishing/VBG
at/IN
486.74/CD
and/CC
the/DT
insurers/NNS
at/IN
537.91/CD
./.
The/DT
Nasdaq/NNP
industrial/JJ
index/NN
climbed/VBD
8.17/CD
to/TO
458.52/CD
,/,
and/CC
the/DT
``/``
other/JJ
finance/NN
''/''
index/NN
,/,
made/VBD
up/RP
of/IN
commercial/JJ
banks/NNS
and/CC
real/JJ
estate/NN
and/CC
brokerage/NN
firms/NNS
,/,
rose/VBD
3.97/CD
to/TO
545.96/CD
./.
The/DT
index/NN
of/IN
smaller/JJR
banks/NNS
improved/VBD
1.97/CD
./.
Of/IN
the/DT
4,346/CD
issues/NNS
that/IN
changed/VBN
hands/NNS
,/,
1,435/CD
rose/VBD
and/CC
629/CD
fell/VBD
./.
Jeremiah/NNP
Mullins/NNP
,/,
head/NN
of/IN
OTC/NNP
trading/NN
at/IN
Dean/NNP
Witter/NNP
Reynolds/NNP
,/,
said/VBD
both/DT
institutional/JJ
and/CC
retail/JJ
investors/NNS
were/VBD
buying/VBG
./.
But/CC
there/EX
was/VBD
a/DT
dearth/NN
of/IN
sellers/NNS
,/,
traders/NNS
said/VBD
,/,
so/IN
buyers/NNS
had/VBD
to/TO
bid/VB
prices/NNS
up/RB
to/TO
entice/VB
them/PRP
./.
``/``
There/EX
's/VBZ
no/DT
pressure/NN
on/IN
OTC/NNP
stocks/NNS
at/IN
this/DT
point/NN
,/,
''/''
said/VBD
Mr./NNP
Mullins/NNP
,/,
who/WP
said/VBD
some/DT
buyers/NNS
are/VBP
beginning/VBG
to/TO
shop/VB
among/IN
smaller/JJR
OTC/NNP
issues/NNS
./.
Microsoft/NNP
's/POS
surge/NN
followed/VBD
a/DT
report/NN
this/DT
week/NN
of/IN
substantially/RB
improved/VBN
earnings/NNS
for/IN
its/PRP$
first/JJ
quarter/NN
,/,
ended/VBN
Sept./NNP
30/CD
./.
The/DT
stock/NN
was/VBD
trading/VBG
at/IN
69/CD
just/RB
two/CD
weeks/NNS
ago/RB
./.
Rick/NNP
Sherlund/NNP
,/,
a/DT
Goldman/NNP
Sachs/NNP
analyst/NN
,/,
has/VBZ
raised/VBN
his/PRP$
earnings/NNS
estimates/NNS
for/IN
the/DT
company/NN
twice/RB
in/IN
the/DT
past/JJ
two/CD
weeks/NNS
,/,
citing/VBG
improved/VBN
margins/NNS
./.
After/IN
the/DT
earnings/NNS
were/VBD
announced/VBN
,/,
he/PRP
raised/VBD
his/PRP$
fiscal/JJ
1990/CD
estimate/NN
to/TO
between/IN
$/$
3.80/CD
and/CC
$/$
4/CD
a/DT
share/NN
./.
Microsoft/NNP
earned/VBD
$/$
3.03/CD
a/DT
share/NN
in/IN
fiscal/JJ
1989/CD
./.
Among/IN
other/JJ
software/NN
issues/NNS
,/,
Autodesk/NNP
jumped/VBD
1/CD
1\/4/CD
to/TO
42/CD
,/,
Lotus/NNP
Development/NNP
was/VBD
unchanged/JJ
at/IN
32/CD
1\/2/CD
,/,
Novell/NNP
jumped/VBD
7\/8/CD
to/TO
30/CD
3\/4/CD
,/,
Ashton-Tate/NNP
gained/VBD
1\/4/CD
to/TO
10/CD
5\/8/CD
,/,
and/CC
Oracle/NNP
Systems/NNP
rose/VBD
3\/4/CD
to/TO
25/CD
3\/4/CD
./.
Caere/NNP
,/,
a/DT
new/JJ
software/NN
issue/NN
,/,
surged/VBD
from/IN
its/PRP$
offering/NN
price/NN
of/IN
12/CD
to/TO
close/VB
at/IN
16/CD
1\/8/CD
./.
The/DT
company/NN
also/RB
makes/VBZ
optical/JJ
character/NN
recognition/NN
equipment/NN
./.
Caere/NNP
was/VBD
underwritten/NN
by/IN
Alex/NNP
./.
Brown/NNP
&/CC
Sons/NNP
./.
Another/DT
recently/RB
offered/VBN
Alex/NNP
./.
Brown/NNP
issue/NN
,/,
Rally/NNP
's/POS
,/,
surged/VBD
3/CD
1\/8/CD
to/TO
23/CD
./.
The/DT
operator/NN
of/IN
fast-food/NN
restaurants/NNS
,/,
whose/WP$
shares/NNS
began/VBD
trading/VBG
last/JJ
Friday/NNP
,/,
climbed/VBD
3/CD
1\/8/CD
to/TO
23/CD
on/IN
944,000/CD
shares/NNS
./.
Its/PRP$
1.7/CD
million-share/JJ
offering/NN
was/VBD
priced/VBN
at/IN
15/CD
./.
Valley/NNP
National/NNP
's/POS
slide/NN
of/IN
5/CD
3\/4/CD
points/NNS
to/TO
18/CD
1\/2/CD
on/IN
4.2/CD
million/CD
shares/NNS
followed/VBD
its/PRP$
report/NN
late/JJ
Wednesday/NNP
of/IN
a/DT
$/$
72.2/CD
million/CD
third-quarter/NN
loss/NN
./.
In/IN
the/DT
1988/CD
quarter/NN
,/,
the/DT
Phoenix/NNP
,/,
Ariz./NNP
,/,
commercial/JJ
banking/NN
concern/NN
earned/VBD
$/$
18.7/CD
million/CD
./.
Valley/NNP
National/NNP
said/VBD
its/PRP$
$/$
110/CD
million/CD
provision/NN
for/IN
credit/NN
losses/NNS
and/CC
$/$
11/CD
million/CD
provision/NN
for/IN
other/JJ
real/JJ
estate/NN
owned/VBN
is/VBZ
related/VBN
to/TO
weakness/NN
in/IN
the/DT
Arizona/NNP
real/JJ
estate/NN
market/NN
./.
Additionally/RB
,/,
Moody/NNP
's/POS
Investors/NNP
Service/NNP
said/VBD
it/PRP
downgraded/VBD
Valley/NNP
National/NNP
's/POS
senior/JJ
debt/NN
and/CC
confirmed/VBD
the/DT
company/NN
's/POS
commercial/JJ
paper/NN
rating/NN
of/IN
``/``
not/RB
prime/JJ
./.
''/''
A/DT
new/JJ
issue/NN
,/,
Exabyte/NNP
,/,
surged/VBD
2/CD
1\/8/CD
from/IN
its/PRP$
initial/JJ
offering/NN
price/NN
to/TO
close/VB
at/IN
12/CD
1\/8/CD
./.
The/DT
offering/NN
was/VBD
for/IN
about/RB
2.8/CD
million/CD
shares/NNS
of/IN
the/DT
data/NN
storage/NN
equipment/NN
maker/NN
;/:
more/JJR
than/IN
2.2/CD
million/CD
shares/NNS
changed/VBD
hands/NNS
after/IN
trading/NN
began/VBD
./.
Dell/NNP
Computer/NNP
dropped/VBD
7\/8/CD
to/TO
6/CD
./.
The/DT
company/NN
said/VBD
earnings/NNS
for/IN
the/DT
year/NN
ending/VBG
Jan./NNP
28/CD
,/,
1990/CD
,/,
are/VBP
expected/VBN
to/TO
be/VB
25/CD
to/TO
35/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
a/DT
previous/JJ
estimate/NN
of/IN
50/CD
to/TO
60/CD
cents/NNS
a/DT
share/NN
./.
Nutmeg/NNP
Industries/NNP
lost/VBD
1/CD
3\/4/CD
to/TO
14/CD
./.
Raymond/NNP
James/NNP
&/CC
Associates/NNP
in/IN
St./NNP
Petersburg/NNP
,/,
Fla./NNP
,/,
lowered/VBD
its/PRP$
third-quarter/JJ
earnings/NNS
estimate/NN
for/IN
the/DT
company/NN
,/,
according/VBG
to/TO
Dow/NNP
Jones/NNP
Professional/NNP
Investor/NNP
Report/NNP
./.
A.P./NNP
Green/NNP
Industries/NNP
advanced/VBD
1/CD
5\/8/CD
to/TO
36/CD
1\/8/CD
./.
East/NNP
Rock/NNP
Partners/NNP
,/,
which/WDT
has/VBZ
indicated/VBN
it/PRP
might/MD
make/VB
a/DT
bid/NN
for/IN
the/DT
company/NN
,/,
said/VBD
A.P./NNP
Green/NNP
,/,
a/DT
refractory/JJ
products/NNS
maker/NN
,/,
told/VBD
the/DT
partnership/NN
it/PRP
is/VBZ
n't/RB
for/IN
sale/NN
./.
Row/NN
21/CD
of/IN
Section/NN
9/CD
of/IN
the/DT
Upper/NNP
Reserved/NNP
at/IN
Candlestick/NNP
Park/NNP
is/VBZ
a/DT
lofty/JJ
perch/NN
,/,
only/RB
a/DT
few/JJ
steps/NNS
from/IN
the/DT
very/JJ
top/NN
of/IN
the/DT
stands/NNS
./.
From/IN
my/PRP$
orange/NN
seat/NN
,/,
I/PRP
looked/VBD
over/IN
the/DT
first-base/JJ
line/NN
and/CC
the/DT
new-mown/JJ
ball/NN
field/NN
in/IN
the/DT
warm/JJ
sun/NN
of/IN
the/DT
last/JJ
few/JJ
minutes/NNS
before/IN
what/WP
was/VBD
to/TO
have/VB
been/VBN
the/DT
third/JJ
game/NN
of/IN
the/DT
World/NNP
Series/NNP
./.
It/PRP
was/VBD
five/CD
in/IN
the/DT
afternoon/NN
,/,
but/CC
that/DT
was/VBD
Pacific/NNP
time/NN
./.
Back/RB
in/IN
New/NNP
York/NNP
the/DT
work/NN
day/NN
was/VBD
already/RB
over/RB
,/,
so/IN
I/PRP
did/VBD
n't/RB
have/VB
to/TO
feel/VB
guilty/JJ
./.
Even/RB
still/RB
,/,
I/PRP
did/VBD
feel/VB
self-indulgent/JJ
,/,
and/CC
I/PRP
could/MD
n't/RB
help/VB
remembering/VBG
my/PRP$
father/NN
's/POS
contempt/NN
for/IN
a/DT
rich/JJ
medical/JJ
colleague/NN
who/WP
would/MD
go/VB
to/TO
watch/VB
the/DT
Tigers/NNP
on/IN
summer/NN
afternoons/NNS
./.
This/DT
ballpark/NN
,/,
the/DT
Stick/NNP
,/,
was/VBD
not/RB
a/DT
classic/JJ
baseball/NN
stadium/NN
--/:
too/RB
symmetrical/JJ
,/,
too/RB
much/JJ
bald/JJ
concrete/NN
./.
And/CC
it/PRP
did/VBD
n't/RB
have/VB
the/DT
crowded/VBN
wild/JJ
intimacy/NN
of/IN
Yankee/NNP
Stadium/NNP
./.
But/CC
I/PRP
liked/VBD
the/DT
easy/JJ
friendliness/NN
of/IN
the/DT
people/NNS
around/IN
me/PRP
,/,
liked/VBD
it/PRP
that/IN
they/PRP
'd/MD
brought/VBD
their/PRP$
children/NNS
,/,
found/VBD
it/PRP
charming/JJ
that/IN
,/,
true/JJ
citizens/NNS
of/IN
the/DT
state/NN
of/IN
the/DT
future/NN
,/,
they/PRP
had/VBD
brought/VBN
so/IN
many/JJ
TVs/NNS
and/CC
radios/NNS
to/TO
stay/VB
in/IN
touch/NN
with/IN
electroreality/NN
at/IN
a/DT
live/JJ
event/NN
./.
Maybe/RB
it/PRP
was/VBD
their/PRP$
peculiar/JJ
sense/NN
of/IN
history/NN
./.
The/DT
broadcasters/NNS
were/VBD
,/,
after/IN
all/DT
,/,
documenting/VBG
the/DT
game/NN
,/,
ratifying/VBG
its/PRP$
occurrence/NN
for/IN
millions/NNS
outside/IN
the/DT
Stick/NNP
./.
Why/WRB
not/RB
watch/VB
or/CC
hear/VB
your/PRP$
experience/NN
historicized/VBN
while/IN
you/PRP
were/VBD
living/VBG
it/PRP
?/.
The/DT
day/NN
was/VBD
saturated/VBN
with/IN
the/DT
weight/NN
of/IN
its/PRP$
own/JJ
impending/JJ
history/NN
./.
Long/JJ
lines/NNS
of/IN
people/NNS
waited/VBD
to/TO
buy/VB
special/JJ
souvenir/NN
World/NNP
Series/NNP
postcards/NNS
with/IN
official/JJ
postmarks/NNS
./.
Thousands/NNS
of/IN
us/PRP
had/VBD
paid/VBN
$/$
5/CD
for/IN
the/DT
official/JJ
souvenir/NN
book/NN
with/IN
its/PRP$
historical/JJ
essays/NNS
on/IN
Series/NNP
trivia/NNS
,/,
its/PRP$
historical/JJ
photographs/NNS
of/IN
great/JJ
moments/NNS
in/IN
Series/NNP
past/NN
,/,
and/CC
its/PRP$
instructions/NNS
,/,
in/IN
English/NNP
and/CC
Spanish/NNP
,/,
for/IN
filling/VBG
in/IN
the/DT
scorecard/NN
./.
Pitcher/NN
=/SYM
lanzador/FW
./.
Homerun/NN
=/SYM
jonron/FW
./.
Players/NNS
ran/VBD
out/RB
on/IN
the/DT
field/NN
way/RB
below/RB
,/,
and/CC
the/DT
stands/NNS
began/VBD
to/TO
reverberate/VB
./.
It/PRP
must/MD
be/VB
a/DT
local/JJ
custom/NN
,/,
I/PRP
thought/VBD
,/,
stamping/VBG
feet/NNS
to/TO
welcome/VB
the/DT
team/NN
./.
But/CC
then/RB
the/DT
noise/NN
turned/VBD
into/IN
a/DT
roar/NN
./.
And/CC
no/DT
one/PRP
was/VBD
shouting/VBG
./.
No/DT
one/PRP
around/IN
me/PRP
was/VBD
saying/VBG
anything/NN
./.
Because/IN
we/PRP
all/DT
were/VBD
busy/JJ
riding/VBG
a/DT
wave/NN
./.
Sixty/CD
thousand/CD
surfers/NNS
atop/IN
a/DT
concrete/JJ
wall/NN
,/,
waiting/VBG
for/IN
the/DT
wipeout/NN
./.
Only/RB
at/IN
the/DT
moment/NN
of/IN
maximum/NN
roll/NN
did/VBD
I/PRP
grasp/VBP
what/WP
was/VBD
going/VBG
on/RP
./.
Then/RB
I/PRP
remembered/VBD
the/DT
quake/NN
of/IN
'71/CD
,/,
which/WDT
I/PRP
experienced/VBD
in/IN
Santa/NNP
Barbara/NNP
in/IN
a/DT
second-story/JJ
motel/NN
room/NN
./.
When/WRB
the/DT
swaying/NN
of/IN
the/DT
building/NN
woke/VBD
me/PRP
up/IN
,/,
I/PRP
reasoned/VBD
that/IN
a/LS
I/PRP
was/VBD
in/IN
Southern/NNP
California/NNP
;/:
b/LS
the/DT
bed/NN
was/VBD
moving/VBG
;/:
c/LS
it/PRP
must/MD
be/VB
a/DT
Magic/NNP
Fingers/NNP
bed/NN
that/WDT
had/VBD
short-circuited/VBN
./.
Then/RB
I/PRP
noticed/VBD
the/DT
overhead/JJ
light/NN
was/VBD
swaying/VBG
on/IN
its/PRP$
cord/NN
and/CC
realized/VBD
what/WP
had/VBD
happened/VBN
./.
What/WP
should/MD
I/PRP
do/VB
?/.
Get/VB
out/IN
of/IN
the/DT
possibly/RB
collapsing/VBG
building/NN
to/TO
the/DT
parking/NN
lot/NN
./.
But/CC
the/DT
lot/NN
might/MD
split/VB
into/IN
crevasses/NNS
,/,
so/IN
I/PRP
had/VBD
better/RBR
stand/VB
on/IN
my/PRP$
car/NN
,/,
which/WDT
probably/RB
was/VBD
wider/JJR
than/IN
the/DT
average/JJ
crevasse/NN
./.
Fortunately/RB
,/,
the/DT
quake/NN
was/VBD
over/RB
before/IN
I/PRP
managed/VBD
to/TO
run/VB
out/RB
and/CC
stand/VB
naked/JJ
on/IN
the/DT
hood/NN
./.
At/IN
the/DT
Stick/NNP
,/,
while/IN
the/DT
world/NN
shook/VBD
,/,
I/PRP
thought/VBD
of/IN
that/DT
morning/NN
and/CC
then/RB
it/PRP
struck/VBD
me/PRP
that/IN
this/DT
time/NN
was/VBD
different/JJ
./.
If/IN
I/PRP
survived/VBD
,/,
I/PRP
would/MD
have/VB
achieved/VBN
every/DT
journalist/NN
's/POS
highest/JJS
wish/NN
./.
I/PRP
was/VBD
an/DT
eyewitness/NN
of/IN
the/DT
most/RBS
newsworthy/JJ
event/NN
on/IN
the/DT
planet/NN
at/IN
that/DT
moment/NN
./.
What/WP
was/VBD
my/PRP$
angle/NN
?/.
How/WRB
would/MD
I/PRP
file/VB
?/.
All/DT
these/DT
thoughts/NNS
raced/VBD
through/IN
my/PRP$
head/NN
in/IN
the/DT
15/CD
seconds/NNS
of/IN
the/DT
earthquake/NN
's/POS
actual/JJ
duration/NN
./.
The/DT
rest/NN
is/VBZ
,/,
of/IN
course/NN
,/,
history/NN
./.
The/DT
Stick/NNP
did/VBD
n't/RB
fall/VB
./.
The/DT
real/JJ
tragedies/NNS
occurred/VBD
elsewhere/RB
,/,
as/IN
we/PRP
soon/RB
found/VBD
out/RP
./.
But/CC
for/IN
a/DT
few/JJ
minutes/NNS
there/RB
,/,
relief/NN
abounded/VBD
./.
A/DT
young/JJ
mother/NN
found/VBD
her/PRP
boy/NN
,/,
who/WP
had/VBD
been/VBN
out/RB
buying/VBG
a/DT
hotdog/NN
./.
The/DT
wall/NN
behind/IN
me/PRP
was/VBD
slightly/RB
deformed/VBN
,/,
but/CC
the/DT
center/NN
had/VBD
held/VBN
./.
And/CC
most/JJS
of/IN
us/PRP
waited/VBD
for/IN
a/DT
while/NN
for/IN
the/DT
game/NN
to/TO
start/VB
./.
Then/RB
we/PRP
began/VBD
to/TO
file/VB
out/RB
,/,
to/TO
wait/VB
safely/RB
on/IN
terra/NN
firma/NN
for/IN
the/DT
opening/VBG
pitch/NN
./.
It/PRP
was/VBD
during/IN
the/DT
quiet/JJ
exodus/NN
down/IN
the/DT
pristine/JJ
concrete/JJ
ramps/NNS
of/IN
the/DT
Stick/NNP
that/IN
I/PRP
really/RB
understood/VBD
the/DT
point/NN
of/IN
all/DT
those/DT
Walkmen/NNP
and/CC
Watchmen/NNP
./.
The/DT
crowd/NN
moved/VBD
in/IN
clumps/NNS
,/,
clumps/NNS
magnetized/VBN
around/IN
an/DT
electronic/JJ
nucleus/NN
./.
In/IN
this/DT
way/NN
,/,
while/IN
the/DT
Stick/NNP
itself/PRP
was/VBD
blacked/VBN
out/RP
,/,
we/PRP
kept/VBD
up/IN
to/TO
date/VB
on/IN
events/NNS
./.
Within/IN
15/CD
minutes/NNS
of/IN
the/DT
quake/NN
itself/PRP
,/,
I/PRP
was/VBD
able/JJ
to/TO
see/VB
pictures/NNS
of/IN
the/DT
collapsed/VBN
section/NN
of/IN
the/DT
Bay/NNP
Bridge/NNP
./.
Increasingly/RB
accurate/JJ
estimates/NNS
of/IN
the/DT
severity/NN
of/IN
the/DT
quake/NN
became/VBD
available/JJ
before/IN
I/PRP
got/VBD
to/TO
my/PRP$
car/NN
./.
And/CC
by/IN
then/RB
,/,
expensive/JJ
automobile/NN
sound/NN
systems/NNS
were/VBD
keeping/VBG
the/DT
gridlocked/VBN
parking/NN
lot/NN
by/IN
the/DT
bay/NN
informed/VBN
about/IN
the/DT
fire/NN
causing/VBG
the/DT
big/JJ
black/JJ
plume/NN
of/IN
smoke/NN
we/PRP
saw/VBD
on/IN
the/DT
northern/JJ
horizon/NN
./.
Darkness/NN
fell/VBD
./.
But/CC
the/DT
broadcasts/NNS
continued/VBN
through/IN
the/DT
blacked-out/JJ
night/NN
,/,
with/IN
pictures/NNS
of/IN
the/DT
sandwiched/VBN
highway/NN
ganglion/NN
in/IN
Oakland/NNP
and/CC
firefighting/NN
in/IN
the/DT
Marina/NNP
district/NN
./.
By/IN
then/RB
,/,
our/PRP$
little/JJ
sand/NN
village/NN
of/IN
cars/NNS
had/VBD
been/VBN
linked/VBN
with/IN
a/DT
global/JJ
village/NN
of/IN
listeners/NNS
and/CC
viewers/NNS
./.
Everyone/NN
at/IN
the/DT
Stick/NNP
that/DT
day/NN
had/VBD
started/VBN
out/RP
as/IN
a/DT
spectator/NN
and/CC
ended/VBD
up/IN
as/IN
a/DT
participant/NN
./.
In/IN
fact/NN
,/,
the/DT
entire/JJ
population/NN
of/IN
the/DT
Bay/NNP
Area/NNP
had/VBD
ended/VBN
up/RP
with/IN
this/DT
dual/JJ
role/NN
of/IN
actor/NN
and/CC
audience/NN
./.
The/DT
reporters/NNS
were/VBD
victims/NNS
and/CC
some/DT
of/IN
the/DT
victims/NNS
turned/VBD
into/IN
unofficial/JJ
reporters/NNS
./.
The/DT
outstanding/JJ
example/NN
of/IN
this/DT
was/VBD
the/DT
motorist/NN
on/IN
the/DT
Bay/NNP
Bridge/NNP
who/WP
had/VBD
the/DT
presence/NN
of/IN
mind/NN
to/TO
take/VB
out/RB
a/DT
video/JJ
camera/NN
at/IN
the/DT
absolutely/RB
crucial/JJ
moment/NN
and/CC
record/VB
the/DT
car/NN
in/IN
front/NN
as/IN
it/PRP
fell/VBD
into/IN
the/DT
gap/NN
in/IN
the/DT
roadway/NN
./.
The/DT
tape/NN
was/VBD
on/IN
tv/NN
before/IN
the/DT
night/NN
was/VBD
out/RB
./.
Marshall/NNP
McLuhan/NNP
,/,
you/PRP
should/MD
have/VB
been/VBN
there/RB
at/IN
that/DT
hour/NN
./.
Investors/NNS
who/WP
received/VBD
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
's/POS
latest/JJS
stock/NN
commentary/NN
may/MD
be/VB
left/VBN
with/IN
blank/JJ
expressions/NNS
./.
The/DT
first/JJ
10/CD
pages/NNS
of/IN
the/DT
76-page/JJ
Weekly/NNP
Portfolio/NNP
Perspective/NNP
are/VBP
completely/RB
blank/JJ
,/,
except/IN
for/IN
the/DT
page/NN
numbers/NNS
./.
Rather/RB
than/IN
printing/VBG
devils/NNS
,/,
Shearson/NNP
puts/VBZ
all/DT
the/DT
blame/NN
on/IN
the/DT
unpredictable/JJ
stock/NN
market/NN
./.
The/DT
plunge/NN
made/VBD
Shearson/NNP
's/POS
market/NN
commentary/NN
instantly/RB
out/IN
of/IN
date/NN
./.
In/IN
fact/NN
,/,
last/JJ
Friday/NNP
's/POS
190.58-point/JJ
tumble/NN
in/IN
the/DT
stock/NN
market/NN
caught/VBD
many/JJ
people/NNS
and/CC
businesses/NNS
by/IN
surprise/NN
,/,
not/RB
the/DT
least/JJS
of/IN
them/PRP
brokerage/NN
firms/NNS
such/JJ
as/IN
Shearson/NNP
that/WDT
print/VBP
their/PRP$
weekly/JJ
market/NN
commentaries/NNS
on/IN
Fridays/NNS
for/IN
dissemination/NN
the/DT
following/JJ
week/NN
./.
Shearson/NNP
,/,
a/DT
62%-owned/JJ
unit/NN
of/IN
American/NNP
Express/NNP
Co./NNP
,/,
did/VBD
n't/RB
have/VB
enough/JJ
time/NN
to/TO
update/VB
its/PRP$
market/NN
commentary/NN
so/RB
,/,
``/``
We/PRP
decided/VBD
to/TO
kill/VB
our/PRP$
strategy/NN
pieces/NNS
,/,
''/''
says/VBZ
Jack/NNP
Rivkin/NNP
,/,
the/DT
head/NN
of/IN
Shearson/NNP
's/POS
research/NN
department/NN
./.
The/DT
first/JJ
thought/VBD
some/DT
investors/NNS
had/VBD
was/VBD
that/IN
a/DT
red-faced/JJ
Shearson/NNP
must/MD
have/VB
been/VBN
wildly/RB
bullish/JJ
on/IN
stocks/NNS
in/IN
its/PRP$
original/JJ
commentary/NN
,/,
and/CC
that/DT
's/VBZ
why/WRB
it/PRP
purged/VBD
its/PRP$
pages/NNS
./.
Investors/NNS
recalled/VBD
that/IN
Shearson/NNP
last/JJ
week/NN
had/VBD
been/VBN
advising/VBG
that/IN
``/``
the/DT
market/NN
is/VBZ
still/RB
exhibiting/VBG
all/DT
the/DT
signs/NNS
of/IN
a/DT
further/JJ
advance/NN
./.
''/''
Many/JJ
other/JJ
brokerage/NN
firms/NNS
had/VBD
similarly/RB
bullish/JJ
views/NNS
./.
But/CC
Mr./NNP
Rivkin/NNP
insists/VBZ
that/IN
the/DT
10/CD
pages/NNS
were/VBD
n't/RB
pulled/VBN
because/IN
they/PRP
were/VBD
too/RB
bullish/JJ
./.
Instead/RB
,/,
he/PRP
says/VBZ
,/,
``/``
they/PRP
were/VBD
cautious/JJ
,/,
and/CC
that/DT
was/VBD
n't/RB
the/DT
message/NN
we/PRP
wanted/VBD
to/TO
deliver/VB
''/''
on/IN
Monday/NNP
./.
As/IN
Mr./NNP
Rivkin/NNP
explains/VBZ
it/PRP
,/,
``/``
We/PRP
were/VBD
raising/VBG
some/DT
caution/NN
flags/NNS
about/IN
rate/NN
rises/NNS
in/IN
Europe/NNP
and/CC
concerns/NNS
about/IN
the/DT
LBO/NNP
market/NN
./.
And/CC
by/IN
late/JJ
Friday/NNP
afternoon/NN
,/,
actually/RB
after/IN
the/DT
close/JJ
,/,
we/PRP
decided/VBD
that/DT
was/VBD
the/DT
wrong/JJ
tone/NN
to/TO
take/VB
./.
With/IN
the/DT
market/NN
down/RB
,/,
we/PRP
wanted/VBD
to/TO
tell/VB
people/NNS
to/TO
put/VB
their/PRP$
orders/NNS
in/RP
on/IN
the/DT
opening/NN
./.
''/''
Both/DT
before/IN
and/CC
after/IN
the/DT
Friday/NNP
plunge/NN
,/,
Shearson/NNP
has/VBZ
maintained/VBN
a/DT
recommended/VBN
portfolio/NN
weighting/NN
of/IN
65/CD
%/NN
stocks/NNS
,/,
20/CD
%/NN
bonds/NNS
and/CC
15/CD
%/NN
cash/NN
./.
Sheldon/NNP
B./NNP
Lubar/NNP
,/,
chairman/NN
of/IN
Lubar/NNP
&/CC
Co./NNP
,/,
and/CC
John/NNP
L./NNP
Murray/NNP
,/,
chairman/NN
of/IN
Universal/NNP
Foods/NNP
Corp./NNP
,/,
were/VBD
elected/VBN
to/TO
the/DT
board/NN
of/IN
this/DT
engine/NN
maker/NN
./.
They/PRP
succeed/VBP
Robert/NNP
W./NNP
Kasten/NNP
and/CC
John/NNP
R./NNP
Parker/NNP
,/,
who/WP
reached/VBD
the/DT
mandatory/JJ
retirement/NN
age/NN
./.
China/NNP
's/POS
slide/NN
toward/IN
recession/NN
is/VBZ
beginning/VBG
to/TO
look/VB
like/IN
a/DT
free/JJ
fall/NN
./.
In/IN
a/DT
report/NN
on/IN
China/NNP
's/POS
foundering/VBG
economy/NN
,/,
the/DT
official/JJ
State/NNP
Statistical/NNP
Bureau/NNP
disclosed/VBD
that/DT
industrial/JJ
output/NN
last/JJ
month/NN
rose/VBD
0.9/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
-/:
the/DT
lowest/JJS
growth/NN
rate/NN
in/IN
a/DT
decade/NN
for/IN
September/NNP
./.
Retail/JJ
sales/NNS
are/VBP
plummeting/VBG
,/,
while/IN
consumer/NN
prices/NNS
still/RB
are/VBP
rising/VBG
./.
Chinese/JJ
and/CC
foreign/JJ
economists/NNS
now/RB
predict/VBP
prolonged/VBN
stagflation/NN
:/:
low/JJ
growth/NN
and/CC
high/JJ
inflation/NN
./.
``/``
The/DT
economy/NN
is/VBZ
crashing/VBG
hard/RB
,/,
''/''
says/VBZ
an/DT
Asian/JJ
economist/NN
in/IN
Beijing/NNP
./.
``/``
The/DT
slowdown/NN
is/VBZ
taking/VBG
hold/VB
a/DT
lot/NN
more/RBR
quickly/RB
and/CC
devastatingly/RB
than/IN
anyone/NN
had/VBD
expected/VBN
./.
''/''
A/DT
lengthy/JJ
recession/NN
,/,
if/IN
it/PRP
materializes/VBZ
,/,
would/MD
drain/VB
state/NN
coffers/NNS
and/CC
create/VB
severe/JJ
hardships/NNS
for/IN
urban/JJ
workers/NNS
./.
Experts/NNS
predict/VBP
the/DT
coming/VBG
year/NN
will/MD
be/VB
characterized/VBN
by/IN
flat/JJ
or/CC
negative/JJ
industrial/JJ
growth/NN
,/,
rising/VBG
unemployment/NN
and/CC
a/DT
widening/VBG
budget/NN
deficit/NN
./.
Unless/IN
the/DT
government/NN
suddenly/RB
reverses/VBZ
course/NN
,/,
wages/NNS
for/IN
most/JJS
workers/NNS
wo/MD
n't/RB
keep/VB
pace/NN
with/IN
inflation/NN
,/,
creating/VBG
a/DT
potential/JJ
source/NN
of/IN
urban/JJ
unrest/NN
./.
The/DT
economy/NN
's/POS
slowdown/NN
is/VBZ
due/JJ
only/RB
partly/RB
to/TO
the/DT
austerity/NN
program/NN
launched/VBN
in/IN
September/NNP
1988/CD
to/TO
cool/VB
an/DT
overheated/VBN
economy/NN
and/CC
tame/JJ
inflation/NN
./.
Industrial/JJ
output/NN
surged/VBD
21/CD
%/NN
in/IN
1988/CD
,/,
while/IN
inflation/NN
peaked/VBD
last/JJ
February/NNP
at/IN
nearly/RB
30/CD
%/NN
./.
The/DT
slowdown/NN
also/RB
results/VBZ
from/IN
chronic/JJ
energy/NN
and/CC
raw-materials/JJ
shortages/NNS
that/WDT
force/VBP
many/JJ
factories/NNS
to/TO
restrict/VB
operations/NNS
to/TO
two/CD
or/CC
three/CD
days/NNS
a/DT
week/NN
./.
In/IN
Western/JJ
,/,
market-driven/JJ
countries/NNS
,/,
recessions/NNS
often/RB
have/VBP
a/DT
bright/JJ
side/NN
:/:
prodding/VBG
the/DT
economy/NN
to/TO
greater/JJR
efficiency/NN
./.
In/IN
China/NNP
,/,
however/RB
,/,
there/EX
is/VBZ
n't/RB
likely/JJ
to/TO
be/VB
any/DT
silver/NN
lining/VBG
because/IN
the/DT
economy/NN
remains/VBZ
guided/VBN
primarily/RB
by/IN
the/DT
state/NN
./.
Instead/RB
,/,
China/NNP
is/VBZ
likely/JJ
to/TO
shell/VB
out/RP
ever-greater/JJ
subsidies/NNS
to/TO
its/PRP$
coddled/VBN
state-run/JJ
enterprises/NNS
,/,
which/WDT
ate/VBD
up/RP
$/$
18/CD
billion/CD
in/IN
bailouts/NNS
last/JJ
year/NN
./.
Nor/CC
are/VBP
any/DT
of/IN
these/DT
inefficient/JJ
monoliths/NNS
likely/JJ
to/TO
be/VB
allowed/VBN
to/TO
go/VB
bankrupt/JJ
./.
Rather/RB
,/,
the/DT
brunt/NN
of/IN
the/DT
slowdown/NN
will/MD
be/VB
felt/VBN
in/IN
the/DT
fast-growing/JJ
private/JJ
and/CC
semi-private/JJ
``/``
township/NN
''/''
enterprises/NNS
,/,
which/WDT
have/VBP
fallen/VBN
into/IN
disfavor/NN
as/IN
China/NNP
's/POS
leaders/NNS
re-emphasize/VBP
an/DT
orthodox/NN
Marxist/JJ
preference/NN
for/IN
public/JJ
ownership/NN
./.
``/``
When/WRB
the/DT
going/NN
gets/VBZ
rough/JJ
,/,
China/NNP
penalizes/VBZ
the/DT
efficient/JJ
and/CC
rewards/VBZ
the/DT
incompetent/JJ
,/,
''/''
says/VBZ
a/DT
Western/JJ
economist/NN
./.
Reports/NNS
of/IN
an/DT
economy/NN
near/IN
recession/NN
come/VBN
as/IN
officials/NNS
prepare/VBP
a/DT
major/JJ
Communist/NNP
Party/NNP
plenum/NN
for/IN
sometime/RB
in/IN
the/DT
next/JJ
few/JJ
weeks/NNS
./.
The/DT
meeting/NN
is/VBZ
expected/VBN
to/TO
call/VB
for/IN
heightened/VBN
austerity/NN
for/IN
two/CD
years/NNS
./.
But/CC
with/IN
industrial/JJ
growth/NN
stagnant/JJ
and/CC
inflation/NN
showing/VBG
signs/NNS
of/IN
easing/VBG
,/,
some/DT
voices/NNS
may/MD
call/VB
for/IN
measures/NNS
to/TO
pump/VB
new/JJ
life/NN
into/IN
the/DT
economy/NN
./.
Some/DT
analysts/NNS
believe/VBP
China/NNP
soon/RB
will/MD
begin/VB
relaxing/VBG
economic/JJ
controls/NNS
,/,
particularly/RB
by/IN
loosening/VBG
credit/NN
./.
That/DT
would/MD
benefit/VB
Chinese/JJ
enterprises/NNS
as/RB
well/RB
as/IN
Sino-foreign/JJ
joint/JJ
ventures/NNS
,/,
both/DT
of/IN
which/WDT
have/VBP
been/VBN
plagued/VBN
by/IN
shortages/NNS
of/IN
working/NN
capital/NN
./.
A/DT
dangerous/JJ
buildup/NN
this/DT
year/NN
of/IN
billions/NNS
of/IN
dollars/NNS
in/IN
inter-company/JJ
debts/NNS
threatens/VBZ
,/,
if/IN
unchecked/JJ
,/,
to/TO
bring/VB
the/DT
economy/NN
to/TO
a/DT
collapse/NN
./.
One/CD
sign/NN
of/IN
a/DT
possible/JJ
easing/VBG
of/IN
credit/NN
policy/NN
was/VBD
the/DT
decision/NN
this/DT
week/NN
of/IN
People/NNP
's/POS
Bank/NNP
of/IN
China/NNP
,/,
the/DT
central/JJ
bank/NN
,/,
to/TO
allocate/VB
$/$
5.4/CD
billion/CD
in/IN
short-term/JJ
loans/NNS
to/TO
pay/VB
farmers/NNS
for/IN
the/DT
autumn/NN
harvest/NN
,/,
the/DT
official/JJ
China/NNP
Daily/NNP
reported/VBD
./.
But/CC
while/IN
pumping/VBG
more/JJR
money/NN
into/IN
the/DT
economy/NN
would/MD
bring/VB
relief/NN
to/TO
many/JJ
industries/NNS
,/,
it/PRP
also/RB
runs/VBZ
the/DT
risk/NN
of/IN
triggering/VBG
another/DT
period/NN
of/IN
runaway/JJ
growth/NN
and/CC
steep/JJ
inflation/NN
./.
The/DT
cycle/NN
has/VBZ
been/VBN
repeated/VBN
several/JJ
times/NNS
since/IN
China/NNP
began/VBD
reforming/VBG
its/PRP$
planned/VBN
economy/NN
in/IN
1979/CD
./.
And/CC
,/,
because/IN
China/NNP
's/POS
leaders/NNS
have/VBP
abandoned/VBN
plans/NNS
to/TO
drastically/RB
reform/VB
the/DT
economy/NN
,/,
it/PRP
is/VBZ
likely/JJ
to/TO
continue/VB
,/,
analysts/NNS
say/VBP
./.
The/DT
statistical/JJ
bureau/NN
's/POS
report/NN
,/,
cited/VBN
in/IN
China/NNP
Daily/NNP
,/,
notes/VBZ
that/IN
industrial/JJ
output/NN
in/IN
September/NNP
totaled/VBD
$/$
29.4/CD
billion/CD
,/,
a/DT
rise/NN
of/IN
just/RB
0.9/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
./.
Output/NN
declined/VBD
in/IN
several/JJ
provinces/NNS
,/,
including/VBG
Jiangsu/NNP
and/CC
Zhejiang/NNP
,/,
two/CD
key/JJ
coastal/JJ
areas/NNS
,/,
and/CC
Sichuan/NNP
,/,
the/DT
nation/NN
's/POS
agricultural/JJ
breadbasket/NN
./.
Production/NN
in/IN
Shanghai/NNP
,/,
China/NNP
's/POS
industrial/JJ
powerhouse/NN
and/CC
the/DT
largest/JJS
source/NN
of/IN
tax/NN
revenue/NN
for/IN
the/DT
central/JJ
government/NN
,/,
fell/VBD
1.8/CD
%/NN
for/IN
the/DT
month/NN
./.
Nationwide/JJ
,/,
output/NN
of/IN
light/JJ
industrial/JJ
products/NNS
declined/VBD
1.8/CD
%/NN
--/:
``/``
the/DT
first/JJ
decline/NN
in/IN
10/CD
years/NNS
,/,
''/''
a/DT
bureau/NN
spokesman/NN
told/VBD
China/NNP
Daily/NNP
./.
In/IN
an/DT
unusually/RB
direct/JJ
statement/NN
,/,
the/DT
bureau/NN
spokesman/NN
recommended/VBD
that/IN
state/NN
banks/NNS
extend/VB
more/JJR
credit/NN
to/TO
shopkeepers/NNS
so/IN
that/IN
they/PRP
can/MD
purchase/VB
manufacturers/NNS
'/POS
goods/NNS
./.
``/``
This/DT
will/MD
prevent/VB
a/DT
slide/NN
in/IN
industrial/JJ
production/NN
,/,
which/WDT
will/MD
otherwise/RB
cause/VB
new/JJ
panic/NN
buyings/NNS
,/,
''/''
the/DT
spokesman/NN
said/VBD
./.
The/DT
1986/CD
tax/NN
overhaul/NN
,/,
the/DT
biggest/JJS
achievement/NN
of/IN
President/NNP
Reagan/NNP
's/POS
second/JJ
term/NN
,/,
is/VBZ
beginning/VBG
to/TO
fall/VB
apart/RB
,/,
and/CC
interest/NN
groups/NNS
are/VBP
lining/VBG
up/RP
for/IN
tax/NN
goodies/NNS
all/DT
over/IN
Capitol/NNP
Hill/NNP
./.
Real-estate/NN
executives/NNS
are/VBP
lobbying/VBG
to/TO
ease/VB
anti-tax-shelter/JJ
rules/NNS
./.
Charitable/JJ
groups/NNS
are/VBP
trying/VBG
to/TO
reinstate/VB
the/DT
write-off/NN
for/IN
contributions/NNS
made/VBN
by/IN
individuals/NNS
who/WP
do/VBP
n't/RB
itemize/VB
their/PRP$
deductions/NNS
./.
Big/JJ
auction/NN
houses/NNS
want/VBP
to/TO
make/VB
collectibles/NNS
eligible/NN
for/IN
lower/JJR
capital-gains/JJ
taxes/NNS
./.
And/CC
heavy-industry/NN
lobbyists/NNS
are/VBP
quietly/RB
discussing/VBG
the/DT
possibility/NN
of/IN
reinstating/VBG
the/DT
investment/NN
tax/NN
credit/NN
./.
``/``
Everything/NN
is/VBZ
up/IN
for/IN
grabs/NNS
,/,
''/''
says/VBZ
Theodore/NNP
Groom/NNP
,/,
a/DT
lobbyist/NN
for/IN
mutual/JJ
life-insurance/NN
companies/NNS
./.
Adds/VBZ
Robert/NNP
Juliano/NNP
,/,
the/DT
head/NN
lobbyist/NN
for/IN
a/DT
variety/NN
of/IN
interests/NNS
that/WDT
want/VBP
to/TO
protect/VB
the/DT
tax/NN
deduction/NN
for/IN
travel/NN
and/CC
entertainment/NN
expenses/NNS
:/:
``/``
It/PRP
appears/VBZ
as/IN
though/IN
the/DT
whole/JJ
thing/NN
is/VBZ
wide/RB
open/JJ
again/RB
./.
''/''
The/DT
catalyst/NN
has/VBZ
been/VBN
the/DT
congressional/JJ
move/NN
to/TO
restore/VB
preferential/JJ
tax/NN
treatment/NN
for/IN
capital/NN
gains/NNS
,/,
an/DT
effort/NN
that/WDT
is/VBZ
likely/JJ
to/TO
succeed/VB
in/IN
this/DT
Congress/NNP
./.
Other/JJ
fundamental/JJ
``/``
reforms/NNS
''/''
of/IN
the/DT
1986/CD
act/NN
have/VBP
been/VBN
threatened/VBN
as/RB
well/RB
./.
The/DT
House/NNP
seriously/RB
considered/VBD
raising/VBG
the/DT
top/JJ
tax/NN
rate/NN
paid/VBN
by/IN
individuals/NNS
with/IN
the/DT
highest/JJS
incomes/NNS
./.
The/DT
Senate/NNP
Finance/NNP
Committee/NNP
voted/VBD
to/TO
expand/VB
the/DT
deduction/NN
for/IN
individual/JJ
retirement/NN
accounts/NNS
,/,
and/CC
also/RB
to/TO
bring/VB
back/JJ
income/NN
averaging/NN
for/IN
farmers/NNS
,/,
a/DT
tax/NN
preference/NN
that/WDT
allows/VBZ
income/NN
to/TO
be/VB
spread/VBN
out/RP
over/IN
several/JJ
years/NNS
./.
As/IN
part/NN
of/IN
the/DT
same/JJ
bill/NN
,/,
the/DT
finance/NN
panel/NN
also/RB
voted/VBD
in/IN
favor/NN
of/IN
billions/NNS
of/IN
dollars/NNS
in/IN
narrow/JJ
tax/NN
breaks/NNS
for/IN
individuals/NNS
and/CC
corporations/NNS
,/,
in/IN
what/WP
committee/NN
member/NN
Sen./NNP
David/NNP
Pryor/NNP
D./NNP
,/,
Ark/NNP
./.
a/DT
``/``
feeding/VBG
frenzy/NN
''/''
of/IN
special-interest/JJ
legislating/NN
./.
The/DT
beneficiaries/NNS
would/MD
range/VB
from/IN
pineapple/NN
growers/NNS
to/TO
rich/JJ
grandparents/NNS
to/TO
tuxedo-rental/JJ
shops/NNS
./.
To/TO
be/VB
sure/JJ
,/,
the/DT
full/JJ
Senate/NNP
,/,
facing/VBG
a/DT
fast-approaching/JJ
budget/NN
deadline/NN
,/,
last/JJ
Friday/NNP
stripped/VBD
away/RB
all/DT
of/IN
the/DT
tax/NN
breaks/NNS
that/WDT
were/VBD
contained/VBN
in/IN
the/DT
Finance/NNP
Committee/NNP
bill/NN
./.
But/CC
lawmakers/NNS
of/IN
both/DT
parties/NNS
agree/VBP
that/IN
the/DT
streamlining/VBG
was/VBD
temporary/JJ
./.
Other/JJ
bills/NNS
will/MD
be/VB
moving/VBG
soon/RB
that/WDT
are/VBP
expected/VBN
to/TO
carry/VB
many/JJ
of/IN
the/DT
tax/NN
cuts/NNS
,/,
including/VBG
both/DT
the/DT
capital-gains/NNS
and/CC
IRA/NNP
provisions/NNS
./.
``/``
There/EX
is/VBZ
n't/RB
any/DT
doubt/NN
that/IN
the/DT
thread/NN
of/IN
the/DT
'86/CD
code/NN
has/VBZ
been/VBN
given/VBN
a/DT
mighty/JJ
tug/NN
,/,
''/''
says/VBZ
Rep./NNP
Thomas/NNP
Downey/NNP
D./NNP
,/,
N.Y/NNP
./.
``/``
You/PRP
'll/MD
see/VB
the/DT
annual/JJ
unraveling/NN
of/IN
it/PRP
./.
''/''
``/``
It/PRP
's/VBZ
back/RP
to/TO
tax-give-away/JJ
time/NN
for/IN
the/DT
select/JJ
few/JJ
,/,
''/''
says/VBZ
Rep./NNP
William/NNP
Gray/NNP
of/IN
Pennsylvania/NNP
,/,
the/DT
third-ranking/JJ
Democrat/NNP
in/IN
the/DT
House/NNP
./.
Referring/VBG
to/TO
the/DT
chairmen/NNS
of/IN
the/DT
Senate/NNP
and/CC
House/NNP
tax-writing/JJ
committees/NNS
,/,
he/PRP
adds/VBZ
,/,
``/``
Next/JJ
year/NN
,/,
every/DT
special-interest/JJ
group/NN
is/VBZ
going/VBG
to/TO
be/VB
there/RB
knocking/VBG
on/IN
Lloyd/NNP
Bentsen/NNP
's/POS
door/NN
,/,
on/IN
Danny/NNP
Rostenkowski/NNP
's/POS
door/NN
./.
''/''
Many/JJ
groups/NNS
are/VBP
n't/RB
waiting/VBG
that/DT
long/JJ
./.
Just/RB
last/JJ
week/NN
,/,
a/DT
House/NNP
Ways/NNP
and/CC
Means/NNP
subcommittee/NN
held/VBD
a/DT
lengthy/JJ
meeting/NN
to/TO
hear/VB
the/DT
pleas/NNS
of/IN
individual/JJ
cities/NNS
,/,
companies/NNS
and/CC
interest/NN
groups/NNS
who/WP
want/VBP
to/TO
open/VB
their/PRP$
own/JJ
special/JJ
loopholes/NNS
./.
``/``
It/PRP
's/VBZ
a/DT
Swiss-cheese/NN
factory/NN
and/CC
the/DT
cheese/NN
smells/VBZ
pretty/RB
good/JJ
,/,
''/''
commented/VBD
one/CD
veteran/NN
lobbyist/NN
who/WP
was/VBD
watching/VBG
the/DT
proceedings/NNS
./.
Even/RB
lobbyists/NNS
for/IN
heavy/JJ
industry/NN
,/,
one/CD
of/IN
the/DT
interests/NNS
hit/VBD
hardest/RBS
in/IN
the/DT
1986/CD
bill/NN
,/,
are/VBP
encouraged/VBN
./.
The/DT
return/NN
of/IN
pro-investment/JJ
tax/NN
breaks/NNS
such/JJ
as/IN
those/DT
for/IN
capital/NN
gains/NNS
and/CC
IRAs/NNS
``/``
creates/VBZ
more/JJR
of/IN
a/DT
mood/NN
or/CC
a/DT
mindset/NN
that/WDT
is/VBZ
helpful/JJ
for/IN
getting/VBG
better/JJR
depreciation/NN
write-offs/NNS
investment/NN
credits/NNS
,/,
''/''
says/VBZ
Paul/NNP
Huard/NNP
,/,
a/DT
vice/NN
president/NN
for/IN
the/DT
National/NNP
Association/NNP
of/IN
Manufacturers/NNP
./.
Corporate/JJ
lobbyist/NN
Charls/NNP
Walker/NNP
is/VBZ
planning/VBG
a/DT
spring/NN
conference/NN
to/TO
discuss/VB
what/WP
tax/NN
changes/NNS
to/TO
make/VB
to/TO
improve/VB
``/``
competitiveness/NN
./.
''/''
In/IN
reaction/NN
to/TO
proposed/VBN
capital-gains/NNS
legislation/NN
,/,
groups/NNS
are/VBP
lobbying/VBG
to/TO
make/VB
sure/JJ
they/PRP
are/VBP
n't/RB
left/VBN
off/RP
the/DT
gravy/NN
train/NN
./.
Real-estate/NN
interests/NNS
,/,
for/IN
example/NN
,/,
are/VBP
protesting/VBG
an/DT
omission/NN
in/IN
President/NNP
Bush/NNP
's/POS
capital-gains/NNS
proposal/NN
:/:
It/PRP
does/VBZ
n't/RB
include/VB
real-estate/NN
gains/NNS
./.
``/``
If/IN
there/EX
is/VBZ
going/VBG
to/TO
be/VB
a/DT
tax/NN
scheme/NN
that/WDT
contemplates/VBZ
lower/JJR
treatment/NN
of/IN
capital/NN
gains/NNS
,/,
they/PRP
certainly/RB
want/VBP
to/TO
be/VB
part/NN
of/IN
it/PRP
,/,
''/''
says/VBZ
real-estate/NN
lobbyist/NN
Wayne/NNP
Thevenot/NNP
of/IN
Concord/NNP
Associates/NNP
./.
In/IN
the/DT
House-passed/JJ
tax/NN
bill/NN
,/,
Mr./NNP
Thevenot/NNP
got/VBD
his/PRP$
wish/NN
;/:
real-estate/NN
assets/NNS
are/VBP
included/VBN
in/IN
the/DT
capital-gains/NNS
provision/NN
./.
But/CC
Sotheby/NNP
's/POS
,/,
Christie/NNP
's/POS
and/CC
the/DT
National/NNP
Association/NNP
of/IN
Antique/NNP
Dealers/NNP
are/VBP
still/RB
trying/VBG
to/TO
get/VB
theirs/JJ
./.
They/PRP
have/VBP
sent/VBN
a/DT
letter/NN
to/TO
congressional/JJ
tax-writers/NNS
asking/VBG
that/IN
gains/NNS
from/IN
the/DT
sale/NN
of/IN
collectibles/NNS
also/RB
be/VB
given/VBN
preferential/JJ
treatment/NN
./.
``/``
Collectibles/NNS
should/MD
continue/VB
to/TO
be/VB
recognized/VBN
as/IN
capital/NN
assets/NNS
,/,
''/''
the/DT
letter/NN
states/NNS
./.
All/DT
of/IN
this/DT
talk/NN
is/VBZ
antithetical/JJ
to/TO
the/DT
Tax/NNP
Reform/NNP
Act/NNP
of/IN
1986/CD
./.
In/IN
exchange/NN
for/IN
dramatically/RB
lower/JJR
tax/NN
rates/NNS
,/,
the/DT
framers/NNS
of/IN
that/DT
legislation/NN
sought/VBD
to/TO
eliminate/VB
most/JJS
of/IN
the/DT
exemptions/NNS
,/,
deductions/NNS
and/CC
credits/NNS
that/WDT
gave/VBD
some/DT
taxpayers/NNS
an/DT
advantage/NN
over/IN
others/NNS
./.
The/DT
goal/NN
was/VBD
to/TO
tax/VB
people/NNS
with/IN
roughly/RB
equivalent/JJ
incomes/NNS
equally/RB
,/,
and/CC
to/TO
eliminate/VB
the/DT
many/JJ
shelters/NNS
that/WDT
allowed/VBD
the/DT
wealthy/JJ
to/TO
escape/VB
taxes/NNS
./.
Two/CD
of/IN
the/DT
major/JJ
ways/NNS
that/IN
tax-writers/NNS
managed/VBD
to/TO
attain/VB
these/DT
ends/NNS
were/VBD
to/TO
scrap/VB
the/DT
preferential/JJ
treatment/NN
of/IN
capital/NN
gains/NNS
and/CC
to/TO
curtail/VB
the/DT
use/NN
of/IN
paper/NN
losses/NNS
,/,
also/RB
known/VBN
as/IN
passive/JJ
losses/NNS
,/,
that/WDT
made/VBD
many/JJ
tax/NN
shelters/NNS
possible/JJ
./.
Many/JJ
other/JJ
tax/NN
benefits/NNS
also/RB
were/VBD
swept/VBN
away/RB
./.
This/DT
year/NN
Congress/NNP
,/,
with/IN
prodding/NN
from/IN
President/NNP
Bush/NNP
,/,
has/VBZ
been/VBN
busy/JJ
trying/VBG
to/TO
put/VB
many/JJ
of/IN
these/DT
same/JJ
tax/NN
preferences/NNS
back/RB
into/IN
the/DT
code/NN
./.
It/PRP
appears/VBZ
likely/RB
that/IN
,/,
this/DT
year/NN
or/CC
next/JJ
,/,
some/DT
form/NN
of/IN
capital-gains/NNS
preference/NN
and/CC
passive-loss/JJ
restoration/NN
will/MD
be/VB
enacted/VBN
./.
Other/JJ
tax/NN
benefits/NNS
probably/RB
will/MD
be/VB
restored/VBN
and/CC
created/VBN
./.
The/DT
main/JJ
obstacle/NN
is/VBZ
finding/VBG
a/DT
way/NN
to/TO
pay/VB
for/IN
them/PRP
./.
``/``
The/DT
'86/CD
act/NN
was/VBD
a/DT
fluke/NN
./.
They/PRP
wanted/VBD
reform/NN
and/CC
they/PRP
got/VBD
a/DT
revolution/NN
,/,
''/''
says/VBZ
overhaul/NN
advocate/NN
Rep./NNP
Willis/NNP
Gradison/NNP
R./NNP
,/,
Ohio/NNP
So/RB
,/,
is/VBZ
the/DT
tax/NN
code/NN
now/RB
open/JJ
game/NN
again/RB
?/.
Mr./NNP
Juliano/NNP
thinks/VBZ
so/RB
./.
One/CD
recent/JJ
Saturday/NNP
morning/NN
he/PRP
stayed/VBD
inside/IN
the/DT
Capitol/NNP
monitoring/VBG
tax-and-budget/JJ
talks/NNS
instead/RB
of/IN
flying/VBG
to/TO
San/NNP
Francisco/NNP
for/IN
a/DT
fund-raiser/NN
and/CC
then/RB
to/TO
his/PRP$
hometown/NN
of/IN
Chicago/NNP
for/IN
the/DT
30th/JJ
reunion/NN
of/IN
St./NNP
Ignatius/NNP
High/NNP
School/NNP
./.
``/``
I/PRP
'm/VBP
too/RB
old/JJ
to/TO
waste/VB
a/DT
weekend/NN
,/,
but/CC
that/DT
's/VBZ
what/WP
I/PRP
did/VBD
,/,
''/''
the/DT
48-year-old/JJ
Mr./NNP
Juliano/NNP
moans/VBZ
./.
``/``
These/DT
days/NNS
,/,
anything/NN
can/MD
happen/VB
./.
''/''
Lufthansa/NNP
AG/NNP
said/VBD
passenger/NN
volume/NN
climbed/VBD
5.2/CD
%/NN
for/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
1989/CD
to/TO
15.3/CD
million/CD
passengers/NNS
from/IN
14.5/CD
million/CD
passengers/NNS
in/IN
the/DT
year-earlier/JJ

period/NN
./.
The/DT
West/JJ
German/JJ
national/JJ
air/NN
carrier/NN
said/VBD
cargo/NN
volume/NN
jumped/VBD
12/CD
%/NN
to/TO
638,000/CD
metric/JJ
tons/NNS
from/IN
569,000/CD
tons/NNS
a/DT
year/NN
ago/RB
./.
Load/NN
factor/NN
,/,
or/CC
percentage/NN
of/IN
seats/NNS
filled/VBN
,/,
climbed/VBN
to/TO
67.1/CD
%/NN
from/IN
66.6/CD
%/NN
,/,
even/RB
though/IN
the/DT
number/NN
of/IN
flights/NNS
rose/VBD
6.9/CD
%/NN
to/TO
215,845/CD
in/IN
the/DT
first-three/JJ
quarters/NNS
./.
From/IN
January/NNP
through/IN
September/NNP
,/,
the/DT
distance/NN
flown/VBN
by/IN
Lufthansa/NNP
airplanes/NNS
rose/VBD
5.6/CD
%/NN
to/TO
266.2/CD
million/CD
kilometers/NNS
from/IN
a/DT
year/NN
earlier/RBR
,/,
the/DT
company/NN
added/VBD
./.
Raymond/NNP
Chandler/NNP
,/,
in/IN
a/DT
1950/CD
letter/NN
defending/VBG
a/DT
weak/JJ
Hemingway/NNP
book/NN
,/,
likened/VBD
a/DT
champion/NN
writer/NN
to/TO
a/DT
baseball/NN
pitcher/NN
./.
When/WRB
the/DT
champ/NN
has/VBZ
lost/VBN
his/PRP$
stuff/NN
,/,
the/DT
great/JJ
mystery/NN
novelist/NN
wrote/VBD
,/,
``/``
when/WRB
he/PRP
can/MD
no/RB
longer/RB
throw/VB
the/DT
high/JJ
hard/JJ
one/CD
,/,
he/PRP
throws/VBZ
his/PRP$
heart/NN
instead/RB
./.
He/PRP
throws/VBZ
something/NN
./.
He/PRP
does/VBZ
n't/RB
just/RB
walk/VB
off/IN
the/DT
mound/NN
and/CC
weep/NN
./.
''/''
Chandler/NNP
might/MD
have/VB
been/VBN
predicting/VBG
the/DT
course/NN
of/IN
his/PRP$
own/JJ
career/NN
./.
His/PRP$
last/JJ
published/VBN
novel/NN
featuring/VBG
private/JJ
detective/NN
Philip/NNP
Marlowe/NNP
,/,
the/DT
inferior/JJ
``/``
Playback/NNP
''/''
(/(
1958/CD
times/NNS
read/VBD
almost/RB
like/IN
a/DT
parody/NN
of/IN
his/PRP$
previous/JJ
work/NN
./.
When/WRB
he/PRP
died/VBD
in/IN
1959/CD
,/,
Chandler/NNP
left/VBD
behind/IN
four/CD
chapters/NNS
of/IN
yet/RB
another/DT
Marlowe/NNP
book/NN
,/,
``/``
The/DT
Poodle/NNP
Springs/NNP
Story/NNP
,/,
''/''
which/WDT
seemed/VBD
to/TO
go/VB
beyond/IN
parody/NN
into/IN
something/NN
like/IN
burlesque/JJ
./.
``/``
Champ/NNP
''/''
Chandler/NNP
's/POS
last/JJ
pitch/NN
,/,
apparently/RB
,/,
was/VBD
a/DT
screwball/NN
./.
Now/RB
Robert/NNP
Parker/NNP
,/,
author/NN
of/IN
several/JJ
best/JJS
sellers/NNS
featuring/VBG
Spenser/NNP
,/,
a/DT
contemporary/JJ
private/JJ
eye/NN
in/IN
the/DT
Marlowe/NNP
mold/NN
,/,
has/VBZ
with/IN
the/DT
blessings/NNS
of/IN
the/DT
Chandler/NNP
estate/NN
been/VBN
hired/VBN
to/TO
complete/VB
``/``
The/DT
Poodle/NNP
Springs/NNP
Story/NNP
./.
''/''
The/DT
result/NN
,/,
``/``
Poodle/NNP
Springs/NNP
''/''
(/(
Putnam/NNP
's/POS
,/,
288/CD
pages/NNS
,/,
$/$
18.95/CD
an/DT
entertaining/JJ
,/,
easy/JJ
to/TO
read/VB
and/CC
fairly/RB
graceful/JJ
extension/NN
of/IN
the/DT
Marlowe/NNP
chronicle/NN
,/,
full/JJ
of/IN
hard-boiled/JJ
wisecracks/NNS
and/CC
California/NNP
color/NN
./.
If/IN
it/PRP
does/VBZ
not/RB
quite/RB
have/VB
Chandler/NNP
's/POS
special/JJ
magic/NN
--/:
well/RB
,/,
at/IN
the/DT
end/NN
,/,
neither/CC
did/VBD
Chandler/NNP
./.
As/IN
the/DT
book/NN
begins/VBZ
,/,
a/DT
newly/RB
wed/VBN
Marlowe/NNP
roars/VBZ
into/IN
the/DT
desert/NN
resort/NN
of/IN
Poodle/NNP
a.k.a/JJ
./.
Palm/NNP
Springs/NNP
at/IN
the/DT
wheel/NN
of/IN
a/DT
Cadillac/NNP
Fleetwood/NNP
./.
His/PRP$
bride/NN
is/VBZ
the/DT
rich/JJ
and/CC
beautiful/JJ
Linda/NNP
Loring/NNP
,/,
a/DT
character/NN
who/WP
also/RB
appeared/VBD
in/IN
Chandler/NNP
's/POS
``/``
The/DT
Long/NNP
Goodbye/NNP
''/''
and/CC
``/``
Playback/NNP
./.
''/''
Philip/NNP
and/CC
Linda/NNP
move/VBP
into/IN
her/PRP$
mansion/NN
and/CC
ca/MD
n't/RB
keep/VB
their/PRP$
hands/NNS
off/IN
each/DT
other/JJ
,/,
even/RB
in/IN
front/NN
of/IN
the/DT
Hawaiian\/Japanese/JJ
houseman/NN
./.
But/CC
the/DT
lovebirds/NNS
have/VBP
a/DT
conflict/NN
./.
He/PRP
wants/VBZ
to/TO
continue/VB
being/VBG
a/DT
low-paid/JJ
private/JJ
eye/NN
,/,
and/CC
she/PRP
wants/VBZ
him/PRP
to/TO
live/VB
off/RP
the/DT
million/CD
dollars/NNS
she/PRP
's/VBZ
settled/VBN
on/IN
him/PRP
./.
That/DT
's/VBZ
Chandler/NNP
's/POS
setup/NN
./.
Mr./NNP
Parker/NNP
spins/VBZ
it/PRP
into/IN
a/DT
pretty/RB
satisfying/JJ
tale/NN
involving/VBG
Poodle/NNP
Springs/NNP
high/JJ
life/NN
,/,
Hollywood/NNP
low/JJ
life/NN
and/CC
various/JJ
folk/NN
who/WP
hang/VBP
their/PRP$
hats/NNS
in/IN
both/DT
worlds/NNS
./.
The/DT
supporting/JJ
lineup/NN
is/VBZ
solid/JJ
,/,
the/DT
patter/NN
is/VBZ
amusing/JJ
and/CC
there/EX
's/VBZ
even/RB
a/DT
cameo/NN
by/IN
Bernie/NNP
Ohls/NNP
,/,
the/DT
``/``
good/JJ
cop/NN
''/''
of/IN
previous/JJ
Chandler/NNP
books/NNS
who/WP
still/RB
does/VBZ
n't/RB
hesitate/VB
to/TO
have/VB
Marlowe/NNP
jailed/VBN
when/WRB
it/PRP
suits/VBZ
his/PRP$
purposes/NNS
./.
The/DT
style/NN
throughout/IN
bears/VBZ
a/DT
strong/JJ
resemblance/NN
to/TO
Chandler/NNP
's/POS
prose/NN
at/IN
its/PRP$
most/RBS
pared/VBN
down/RP
./.
All/DT
told/VBD
,/,
Mr./NNP
Parker/NNP
does/VBZ
a/DT
better/JJR
job/NN
of/IN
making/VBG
a/DT
novel/NN
out/IN
of/IN
this/DT
abandoned/JJ
fragment/NN
than/IN
anyone/NN
might/MD
have/VB
had/VBD
a/DT
right/NN
to/TO
expect/VB
./.
But/CC
there/EX
are/VBP
grounds/NNS
for/IN
complaint/NN
./.
At/IN
one/CD
point/NN
,/,
the/DT
reader/NN
is/VBZ
two/CD
steps/NNS
ahead/RB
of/IN
Marlowe/NNP
in/IN
catching/VBG
on/RP
to/TO
a/DT
double/JJ
identity/NN
scam/NN
--/:
and/CC
Marlowe/NNP
is/VBZ
supposed/VBN
to/TO
be/VB
the/DT
pro/NN
./.
More/RBR
bothersome/JJ
,/,
there/EX
are/VBP
several/JJ
apparent/JJ
anachronisms/NNS
./.
Contact/NN
lenses/NNS
,/,
tank/NN
tops/NNS
,/,
prostitutes/NNS
openly/RB
working/VBG
the/DT
streets/NNS
of/IN
Hollywood/NNP
and/CC
the/DT
Tequila/NNP
Sunrise/NNP
cocktail/NN
all/DT
seem/VBP
out/IN
of/IN
place/NN
in/IN
the/DT
1950s/CD
./.
A/DT
little/JJ
more/JJR
care/NN
in/IN
re-creating/NN
Marlowe/NNP
's/POS
universe/NN
would/MD
have/VB
made/VBN
the/DT
book/NN
that/RB
much/RB
more/RBR
enjoyable/JJ
./.
Mr./NNP
Nolan/NNP
is/VBZ
a/DT
contributing/VBG
editor/NN
at/IN
Los/NNP
Angeles/NNP
Magazine/NNP
./.
Ko/NNP
Shioya/NNP
spent/VBD
eight/CD
years/NNS
as/IN
the/DT
editor/NN
in/IN
chief/NN
of/IN
the/DT
Japanese/JJ
edition/NN
of/IN
Reader/NNP
's/POS
Digest/NNP
./.
``/``
Japan/NNP
has/VBZ
been/VBN
a/DT
major/JJ
importer/NN
of/IN
foreign/JJ
information/NN
and/CC
news/NN
,/,
''/''
says/VBZ
Mr./NNP
Shioya/NNP
./.
``/``
But/CC
one/PRP
gets/VBZ
fed/VBN
up/RP
with/IN
importing/VBG
information/NN
and/CC
news/NN
./.
''/''
Mr./NNP
Shioya/NNP
has/VBZ
turned/VBN
the/DT
tables/NNS
./.
Today/NN
,/,
he/PRP
is/VBZ
publisher/NN
of/IN
Business/NNP
Tokyo/NNP
magazine/NN
,/,
the/DT
first/JJ
English-language/JJ
business/NN
magazine/NN
devoted/VBN
to/TO
coverage/NN
of/IN
Japanese/JJ
business/NN
./.
After/IN
a/DT
slick/JJ
redesign/NN
,/,
the/DT
two-year-old/JJ
magazine/NN
has/VBZ
been/VBN
relaunched/VBN
this/DT
month/NN
by/IN
its/PRP$
parent/NN
company/NN
,/,
Keizaikai/NNP
Corp./NNP
,/,
the/DT
Tokyo-based/JJ
company/NN
with/IN
interests/NNS
that/WDT
include/VBP
financial/JJ
services/NNS
,/,
book/NN
publishing/NN
and/CC
a/DT
tourist/NN
agency/NN
./.
Printed/NNP
in/IN
the/DT
U.S./NNP
and/CC
carrying/VBG
the/DT
line/NN
``/``
The/DT
Insider/NNP
's/POS
Japan/NNP
,/,
''/''
Business/NNP
Tokyo/NNP
's/POS
October/NNP
cover/NN
story/NN
was/VBD
``/``
The/DT
World/NNP
's/POS
No./NN
1/CD
Customer/NN
''/''
--/:
Japanese/JJ
women/NNS
./.
Keizaikai/NNP
is/VBZ
one/CD
of/IN
a/DT
small/JJ
but/CC
growing/VBG
band/NN
of/IN
Japanese/JJ
companies/NNS
taking/VBG
their/PRP$
first/JJ
steps/NNS
into/IN
American/JJ
publishing/NN
,/,
after/IN
making/VBG
major/JJ
investments/NNS
in/IN
entertainment/NN
,/,
real/JJ
estate/NN
and/CC
banking/NN
companies/NNS
here/RB
./.
Japanese/JJ
concerns/NNS
have/VBP
retained/VBN
a/DT
number/NN
of/IN
publishing/NN
consultants/NNS
and/CC
media/NNS
brokers/NNS
to/TO
study/VB
the/DT
U.S./NNP
market/NN
,/,
including/VBG
the/DT
New/NNP
York-based/JJ
investment/NN
banker/NN
Veronis/NNP
,/,
Suhler/NNP
&/CC
Associates/NNP
./.
And/CC
they/PRP
are/VBP
quietly/RB
linking/VBG
up/RP
with/IN
U.S./NNP
publishing/NN
trade/NN
groups/NNS
./.
``/``
Japanese/JJ
publishers/NNS
want/VBP
to/TO
be/VB
introduced/VBN
to/TO
the/DT
publishing/NN
and/CC
information/NN
industries/NNS
,/,
''/''
said/VBD
John/NNP
Veronis/NNP
,/,
chairman/NN
of/IN
Veronis/NNP
Suhler/NNP
./.
While/IN
there/EX
are/VBP
n't/RB
any/DT
major/JJ
deals/NNS
in/IN
the/DT
works/NNS
currently/RB
on/IN
the/DT
scale/NN
of/IN
Sony/NNP
Corp./NNP
's/POS
recent/JJ
$/$
3.4/CD
billion/CD
agreement/NN
to/TO
buy/VB
Columbia/NNP
Pictures/NNP
Entertainment/NNP
Inc./NNP
,/,
observers/NNS
do/VBP
n't/RB
rule/VB
out/RP
a/DT
transaction/NN
of/IN
that/DT
size/NN
./.
``/``
The/DT
Japanese/NNS
take/VBP
the/DT
long/JJ
view/NN
./.
''/''
said/VBD
Mr./NNP
Veronis/NNP
./.
``/``
It/PRP
may/MD
not/RB
be/VB
weeks/NNS
or/CC
months/NNS
,/,
but/CC
they/PRP
are/VBP
also/RB
opportunistic/JJ
and/CC
if/IN
they/PRP
feel/VBP
comfortable/JJ
,/,
they/PRP
will/MD
move/VB
on/IN
a/DT
deal/NN
,/,
''/''
he/PRP
said/VBD
./.
In/IN
recent/JJ
months/NNS
,/,
three/CD
big/JJ
Tokyo-based/JJ
publishing/NN
concerns/NNS
--/:
including/VBG
Nikkei/NNP
Business/NNP
Publications/NNP
,/,
Nikkei/NNP
Home/NNP
no/DT
relation/NN
Magazine/NNP
House/NNP
--/:
applied/VBD
for/IN
membership/NN
in/IN
Magazine/NNP
Publishers/NNP
of/IN
America/NNP
,/,
which/WDT
represents/VBZ
almost/RB
all/DT
U.S./NNP
consumer/NN
magazines/NNS
./.
Japanese/JJ
involvement/NN
in/IN
American/JJ
publishing/NN
has/VBZ
been/VBN
so/RB
small/JJ
to/TO
date/NN
that/IN
magazines/NNS
such/JJ
as/IN
Business/NNP
Tokyo/NNP
are/VBP
considered/VBN
groundbreakers/NNS
./.
When/WRB
Keizaikai/NNP
launched/VBD
Business/NNP
Tokyo/NNP
in/IN
1987/CD
,/,
it/PRP
appealed/VBD
to/TO
a/DT
more/RBR
multinational/JJ
audience/NN
./.
The/DT
magazine/NN
was/VBD
overhauled/VBN
with/IN
the/DT
aid/NN
of/IN
American/JJ
magazine/NN
design/NN
gurus/NNS
Milton/NNP
Glaser/NNP
and/CC
Walter/NNP
Bernard/NNP
,/,
and/CC
targets/VBZ
top-level/JJ
U.S./NNP
executives/NNS
with/IN
Japanese/JJ
and/CC
American/JJ
advertisers/NNS
./.
American/JJ
publishers/NNS
appear/VBP
more/RBR
than/IN
ready/JJ
to/TO
do/VB
some/DT
selling/VBG
./.
Susumu/NNP
Ohara/NNP
,/,
president/NN
of/IN
Nihon/NNP
Keizai/NNP
Shinbun/NNP
America/NNP
Inc./NNP
,/,
publisher/NN
of/IN
the/DT
Japan/NNP
Economic/NNP
Journal/NNP
,/,
said/VBD
he/PRP
receives/VBZ
telephone/NN
calls/NNS
weekly/RB
from/IN
media/NNS
bankers/NNS
on/IN
whether/CC
his/PRP$
parent/NN
company/NN
is/VBZ
interested/JJ
in/IN
buying/VBG
a/DT
U.S./NNP
consumer/NN
or/CC
business/NN
magazine/NN
./.
``/``
The/DT
Japanese/NNS
are/VBP
in/IN
the/DT
early/JJ
stage/NN
right/RB
now/RB
,/,
''/''
said/VBD
Thomas/NNP
Kenney/NNP
,/,
a/DT
onetime/JJ
media/NN
adviser/NN
for/IN
First/NNP
Boston/NNP
Corp./NNP
who/WP
was/VBD
recently/RB
appointed/VBN
president/NN
of/IN
Reader/NNP
's/POS
Digest/NNP
Association/NNP
's/POS
new/JJ
Magazine/NNP
Publishing/NNP
Group/NNP
./.
``/``
Before/IN
,/,
they/PRP
were/VBD
interested/JJ
in/IN
hard/JJ
assets/NNS
and/CC
they/PRP
saw/VBD
magazines/NNS
as/IN
soft/JJ
./.
Now/RB
they/PRP
realize/VBP
magazines/NNS
are/VBP
as/RB
much/RB
a/DT
franchise/NN
as/IN
Nabisco/NNP
is/VBZ
a/DT
franchise/NN
./.
''/''
Bell/NNP
Atlantic/NNP
Corp./NNP
and/CC
Southern/NNP
New/NNP
England/NNP
Telecommunications/NNP
posted/VBD
strong/JJ
profit/NN
gains/NNS
for/IN
the/DT
third/JJ
quarter/NN
,/,
while/IN
Nynex/NNP
Corp./NNP
,/,
Pacific/NNP
Telesis/NNP
Group/NNP
and/CC
U/NNP
S/NNP
West/NNP
Inc./NNP
reported/VBD
earnings/NNS
declines/NNS
for/IN
the/DT
period/NN
./.
Rate/NN
settlements/NNS
in/IN
Minnesota/NNP
and/CC
Colorado/NNP
depressed/VBD
U/NNP
S/NNP
West/NNP
's/POS
third-quarter/JJ
profit/NN
./.
Denver-based/JJ
U/NNP
S/NNP
West/NNP
said/VBD
net/JJ
income/NN
dropped/VBD
8.9/CD
%/NN
,/,
noting/VBG
that/IN
the/DT
year-ago/JJ
quarter/NN
included/VBD
the/DT
sale/NN
of/IN
a/DT
building/NN
by/IN
its/PRP$
BetaWest/NNP
Properties/NNP
unit/NN
./.
Revenue/NNP
dropped/VBD
4.3/CD
%/NN
to/TO
$/$
2.3/CD
billion/CD
from/IN
$/$
2.4/CD
billion/CD
,/,
reflecting/VBG
declines/NNS
in/IN
its/PRP$
consumer-telephone/JJ
sector/NN
,/,
long-distance/JJ
carrier/NN
business/NN
and/CC
diversified/JJ
division/NN
./.
Revenue/NNP
from/IN
business-telephone/JJ
operations/NNS
grew/VBD
3.3/CD
%/NN
to/TO
$/$
618.9/CD
million/CD
from/IN
$/$
599.4/CD
million/CD
a/DT
year/NN
ago/RB
./.
New/JJ
telephone/NN
lines/NNS
posted/VBD
healthy/JJ
growth/NN
./.
Overall/RB
they/PRP
increased/VBD
2.8/CD
%/NN
to/TO
12.1/CD
million/CD
,/,
putting/VBG
U/NNP
S/NNP
West/NNP
over/IN
the/DT
12/CD
million/CD
mark/NN
for/IN
the/DT
first/JJ
time/NN
./.
Business/NN
lines/NNS
increased/VBD
3.7/CD
%/NN
to/TO
3.3/CD
million/CD
./.
``/``
On/IN
a/DT
truly/RB
comparable/JJ
basis/NN
,/,
we/PRP
've/VBP
seen/VBN
modest/JJ
earnings/NNS
growth/NN
this/DT
year/NN
from/IN
the/DT
operations/NNS
of/IN
our/PRP$
company/NN
,/,
''/''
said/VBD
Jack/NNP
MacAllister/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
./.
``/``
The/DT
major/JJ
negative/JJ
factor/NN
was/VBD
the/DT
cumulative/JJ
impact/NN
of/IN
regulatory/JJ
activity/NN
over/IN
the/DT
past/JJ
two/CD
years/NNS
./.
''/''
He/PRP
said/VBD
the/DT
company/NN
expects/VBZ
to/TO
be/VB
``/``
on/IN
target/NN
''/''
with/IN
analysts/NNS
'/POS
projections/NNS
by/IN
year/NN
end/NN
but/CC
conceded/VBD
that/IN
the/DT
fourth/JJ
quarter/NN
represents/VBZ
``/``
a/DT
significant/JJ
challenge/NN
./.
''/''
Expenses/NNS
in/IN
the/DT
quarter/NN
dropped/VBD
11.2/CD
%/NN
to/TO
$/$
664.3/CD
million/CD
from/IN
$/$
747.7/CD
million/CD
a/DT
year/NN
ago/RB
./.
Yesterday/NN
,/,
U/NNP
S/NNP
West/NNP
shares/NNS
rose/VBD
75/CD
cents/NNS
to/TO
close/VB
at/IN
$/$
71.25/CD
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
Philadelphia-based/JJ
Bell/NNP
Atlantic/NNP
said/VBD
net/JJ
rose/VBD
6.5/CD
%/NN
,/,
aided/VBN
by/IN
strong/JJ
growth/NN
in/IN
the/DT
network-services/JJ
business/NN
and/CC
an/DT
increase/NN
in/IN
the/DT
number/NN
of/IN
new/JJ
telephone/NN
lines/NNS
./.
Revenue/NN
jumped/VBD
5.6/CD
%/NN
to/TO
$/$
2.9/CD
billion/CD
from/IN
$/$
2.8/CD
billion/CD
in/IN
the/DT
year-ago/JJ
quarter/NN
./.
Revenue/NN
from/IN
financial/JJ
and/CC
real-estate/JJ
services/NNS
jumped/VBD
23/CD
%/NN
to/TO
$/$
177.4/CD
million/CD
from/IN
$/$
144.1/CD
million/CD
a/DT
year/NN
ago/RB
./.
Network-access/JJ
revenue/NN
from/IN
long-distance/JJ
telephone/NN
companies/NNS
increased/VBD
6.4/CD
%/NN
to/TO
$/$
618.6/CD
million/CD
./.
Bell/NNP
Atlantic/NNP
added/VBD
148,000/CD
new/JJ
telephone/NN
lines/NNS
in/IN
the/DT
quarter/NN
for/IN
a/DT
total/NN
of/IN
16.9/CD
million/CD
./.
The/DT
company/NN
said/VBD
per-share/JJ
earnings/NNS
were/VBD
slightly/RB
reduced/VBN
by/IN
the/DT
sale/NN
of/IN
4.1/CD
million/CD
shares/NNS
of/IN
treasury/NN
stock/NN
to/TO
the/DT
company/NN
's/VBZ
newly/RB
formed/VBN
Employee/NNP
Stock/NNP
Ownership/NNP
Plans/NNP
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
Big/NNP
Board/NNP
,/,
Bell/NNP
Atlantic/NNP
closed/VBD
at/IN
$/$
100.625/CD
,/,
up/RB
$/$
1.50/CD
a/DT
share/NN
./.
At/IN
Nynex/NNP
,/,
net/JJ
slumped/VBD
14.8/CD
%/NN
,/,
primarily/RB
because/IN
of/IN
a/DT
continuing/VBG
strike/NN
by/IN
60,000/CD
employees/NNS
,/,
lower-than-expected/JJ
profit/NN
at/IN
its/PRP$
New/NNP
York/NNP
Telephone/NNP
unit/NN
and/CC
significantly/RB
higher/JJR
taxes/NNS
and/CC
costs/NNS
./.
State/NN
and/CC
local/JJ
taxes/NNS
increased/VBD
to/TO
$/$
131.3/CD
million/CD
from/IN
$/$
99.1/CD
million/CD
a/DT
year/NN
ago/RB
./.
Nynex/NNP
said/VBD
expenses/NNS
rose/VBD
4.5/CD
%/NN
to/TO
$/$
2.73/CD
billion/CD
from/IN
$/$
2.61/CD
billion/CD
,/,
a/DT
$/$
119/CD
million/CD
increase/NN
./.
Most/JJS
of/IN
the/DT
higher/JJR
costs/NNS
were/VBD
associated/VBN
with/IN
acquisitions/NNS
and/CC
growth/NN
in/IN
nonregulated/JJ
business/NN
units/NNS
,/,
it/PRP
added/VBD
./.
``/``
Our/PRP$
net/JJ
income/NN
is/VBZ
n't/RB
where/WRB
we/PRP
would/MD
want/VB
it/PRP
to/TO
be/VB
at/IN
this/DT
point/NN
,/,
''/''
said/VBD
William/NNP
C./NNP
Ferguson/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
./.
``/``
This/DT
deviation/NN
from/IN
our/PRP$
past/JJ
growth/NN
patterns/NNS
is/VBZ
caused/VBN
largely/RB
by/IN
lower/JJR
earnings/NNS
at/IN
New/NNP
York/NNP
Telephone/NNP
./.
''/''
Mr./NNP
Ferguson/NNP
said/VBD
a/DT
continued/VBN
softness/NN
in/IN
New/NNP
York/NNP
City/NNP
area/NN
's/POS
economy/NN
and/CC
increased/VBN
competition/NN
,/,
particularly/RB
in/IN
the/DT
private-line/JJ
market/NN
,/,
took/VBD
a/DT
heavy/NN
toll/NN
on/IN
earnings/NNS
./.
The/DT
three-month-old/JJ
strike/NN
at/IN
Nynex/NNP
seriously/RB
hurt/VBD
the/DT
installation/NN
of/IN
new/JJ
telephone/NN
lines/NNS
in/IN
the/DT
quarter/NN
./.
Nynex/NNP
said/VBD
access/NN
lines/NNS
in/IN
service/NN
at/IN
the/DT
end/NN
of/IN
the/DT
quarter/NN
were/VBD
off/JJ
18,000/CD
from/IN
the/DT
previous/JJ
quarter/NN
,/,
which/WDT
reported/VBD
an/DT
increase/NN
of/IN
160,000/CD
new/JJ
access/NN
lines/NNS
./.
Revenue/NN
rose/VBD
to/TO
$/$
3.31/CD
billion/CD
from/IN
$/$
3.18/CD
billion/CD
,/,
mostly/RB
from/IN
acquisition/NN
of/IN
AGS/NNP
Computers/NNP
and/CC
robust/JJ
non-regulated/JJ
businesses/NNS
./.
In/IN
Big/NNP
Board/NNP
composite/NN
trading/NN
yesterday/NN
,/,
Nynex/NNP
common/NN
closed/VBD
at/IN
$/$
81.125/CD
,/,
up/RB
$/$
1.625/CD
./.
Southern/NNP
New/NNP
England/NNP
Telecommunications/NNP
,/,
which/WDT
bolstered/VBD
its/PRP$
marketing/NN
efforts/NNS
for/IN
telephone/NN
and/CC
non-telephone/JJ
subsidiaries/NNS
,/,
reported/VBD
that/DT
net/JJ
increased/VBD
8.1/CD

%/NN
./.
Walter/NNP
H./NNP
Monteith/NNP
Jr./NNP
,/,
SNET/NNP
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
said/VBD
:/:
``/``
Innovative/JJ
marketing/NN
of/IN
our/PRP$
products/NNS
and/CC
services/NNS
contributed/VBD
to/TO
increase/VB
revenue/NN
./.
''/''
Revenue/NN
and/CC
sales/NNS
increased/VBD
7.5/CD
%/NN
to/TO
$/$
423.9/CD
million/CD
from/IN
$/$
394.4/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
Yellow/JJ
pages/NNS
advertising/NN
sales/NNS
rose/VBD
11.8/CD
%/NN
to/TO
$/$
41.2/CD
million/CD
./.
Cost/NN
and/CC
expenses/NNS
for/IN
the/DT
quarter/NN
,/,
excluding/VBG
interest/NN
,/,
increased/VBD
6.1/CD
%/NN
to/TO
$/$
333.3/CD
million/CD
from/IN
$/$
314/CD
million/CD
the/DT
year/NN
before/RB
./.
SNET/NNP
common/NN
rose/VBD
$/$
1.25/CD
to/TO
$/$
85.50/CD
a/DT
share/NN
yesterday/NN
in/IN
composite/JJ
trading/NN
on/IN
the/DT
Big/NNP
Board/NNP
./.
San/NNP
Francisco-based/JJ
Pacific/NNP
Telesis/NNP
said/VBD
net/JJ
declined/VBD
12.6/CD
%/NN
,/,
primarily/RB
because/IN
of/IN
regulatory/JJ
action/NN
./.
Revenue/NN
was/VBD
about/RB
flat/JJ
at/IN
$/$
2.4/CD
billion/CD
./.
Revenue/NN
was/VBD
reduced/VBN
$/$
33/CD
million/CD
by/IN
three/CD
extraordinary/JJ
items/NNS
:/:
a/DT
California/NNP
Public/NNP
Utilities/NNP
Commission/NNP
refund/NN
for/IN
an/DT
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
Co./NNP
billing/NN
adjustment/NN
;/:
a/DT
provision/NN
for/IN
productivity/NN
sharing/NN
to/TO
be/VB
paid/VBN
to/TO
customers/NNS
in/IN
1990/CD
and/CC
a/DT
one-time/JJ
accrual/NN
for/IN
a/DT
toll/NN
settlement/NN
with/IN
long-distance/JJ
telephone/NN
companies/NNS
./.
Excluding/VBG
the/DT
one-time/JJ
charges/NNS
,/,
the/DT
company/NN
would/MD
have/VB
posted/VBN
earnings/NNS
of/IN
$/$
298/CD
million/CD
,/,
or/CC
73/CD
cents/NNS
a/DT
share/NN
./.
The/DT
company/NN
also/RB
was/VBD
hurt/VBN
by/IN
a/DT
$/$
289/CD
million/CD
rate/NN
reduction/NN
that/WDT
went/VBD
into/IN
effect/NN
in/IN
1989/CD
./.
``/``
This/DT
is/VBZ
a/DT
good/JJ
quarter/NN
for/IN
us/PRP
in/IN
terms/NNS
of/IN
our/PRP$
business/NN
fundamentals/NNS
,/,
''/''
said/VBD
Sam/NNP
Ginn/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
./.
Pacific/NNP
Telesis/NNP
said/VBD
new/JJ
telephone/NN
lines/NNS
increased/VBD
4.5/CD
%/NN
for/IN
a/DT
total/NN
of/IN
about/RB
$/$
13.5/CD
million/CD
for/IN
the/DT
quarter/NN
;/:
toll/NN
calls/NNS
increased/VBD
9.6/CD
%/NN
to/TO
807/CD
million/CD
and/CC
minutes/NNS
of/IN
telephone/NN
usage/NN
increased/VBD
to/TO
9.9/CD
billion/CD
./.
In/IN
Big/NNP
Board/NNP
composite/NN
trading/NN
yesterday/NN
,/,
Pacific/NNP
Telesis/NNP
common/NN
closed/VBD
at/IN
$/$
45.50/CD
,/,
up/RB
87.5/CD
cents/NNS
./.
a/SYM
-/:
Includes/VBZ
a/DT
one-time/JJ
gain/NN
of/IN
$/$
88.7/CD
million/CD
from/IN
a/DT
commonstock/NN
sale/NN
by/IN
U/NNP
S/NNP
West/NNP
's/POS
U/NNP
S/NNP
West/NNP
New/NNP
Vector/NNP
Group/NNP
./.
b/SYM
-/:
Includes/VBZ
a/DT
$/$
41.3/CD
million/CD
gain/NN
on/IN
the/DT
sale/NN
of/IN
FiberCom/NNP
./.
Amoco/NNP
Corp./NNP
said/VBD
third-quarter/JJ
net/JJ
income/NN
plunged/VBD
39/CD
%/NN
to/TO
$/$
336/CD
million/CD
,/,
or/CC
65/CD
cents/NNS
a/DT
share/NN
,/,
as/IN
gasoline/NN
refining/NN
and/CC
marketing/NN
profits/NNS
lagged/VBD
substantially/RB
behind/IN
last/JJ
year/NN
's/POS
record/NN
level/NN
./.
A/DT
charge/NN
of/IN
$/$
80/CD
million/CD
related/VBN
to/TO
projected/VBN
environmental/JJ
costs/NNS
in/IN
its/PRP$
refining/NN
and/CC
marketing/NN
operations/NNS
further/RBR
depressed/VBD
results/NNS
./.
A/DT
spokesman/NN
said/VBD
Amoco/NNP
completed/VBD
an/DT
environmental/JJ
analysis/NN
last/JJ
quarter/NN
but/CC
that/IN
no/DT
single/JJ
clean-up/JJ
project/NN
was/VBD
responsible/JJ
./.
In/IN
the/DT
1988/CD
third/JJ
quarter/NN
,/,
the/DT
Chicago-based/JJ
oil/NN
company/NN
earned/VBD
$/$
552/CD
million/CD
,/,
or/CC
$/$
1.07/CD
a/DT
share/NN
./.
Revenue/NN
in/IN
the/DT
latest/JJS
quarter/NN
rose/VBD
12/CD
%/NN
to/TO
$/$
6.6/CD
billion/CD
from/IN
$/$
5.91/CD
billion/CD
./.
Aside/RB
from/IN
the/DT
special/JJ
charge/NN
,/,
Amoco/NNP
's/POS
results/NNS
were/VBD
in/IN
line/NN
with/IN
Wall/NNP
Street/NNP
estimates/NNS
./.
The/DT
company/NN
's/POS
stock/NN
ended/VBD
at/IN
$/$
48.375/CD
,/,
up/RB
25/CD
cents/NNS
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
Amoco/NNP
is/VBZ
the/DT
first/RB
major/JJ
oil/NN
company/NN
to/TO
report/VB
third-quarter/JJ
results/NNS
./.
Analysts/NNS
expect/VBP
others/NNS
to/TO
show/VB
a/DT
similar/JJ
pattern/NN
./.
Generally/RB
in/IN
the/DT
quarter/NN
,/,
overproduction/NN
of/IN
gasoline/NN
and/CC
higher/JJR
crude/NN
oil/NN
prices/NNS
pressured/VBD
profitability/NN
./.
The/DT
industry/NN
's/POS
chemical/NN
profits/NNS
also/RB
declined/VBD
because/IN
excess/JJ
capacity/NN
has/VBZ
depressed/VBN
prices/NNS
./.
Gasoline/NN
margins/NNS
may/MD
rebound/VB
this/DT
quarter/NN
,/,
some/DT
industry/NN
officials/NNS
say/VB
,/,
but/CC
they/PRP
believe/VBP
chemical/JJ
margins/NNS
could/MD
worsen/VB
./.
American/NNP
Petrofina/NNP
Inc./NNP
,/,
a/DT
Dallas-based/JJ
integrated/VBN
oil/NN
company/NN
,/,
yesterday/NN
said/VBD
its/PRP$
third-quarter/JJ
earnings/NNS
declined/VBD
by/IN
more/JJR
than/IN
half/NN
./.
Fina/NNP
blamed/VBD
lower/JJR
chemical/NN
prices/NNS
,/,
reduced/VBN
gasoline/NN
margins/NNS
and/CC
refinery/NN
maintenance/NN
shutdowns/NNS
./.
It/PRP
said/VBD
net/JJ
income/NN
dropped/VBD
to/TO
$/$
15.1/CD
million/CD
,/,
or/CC
98/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
35.2/CD
million/CD
,/,
or/CC
$/$
2.66/CD
a/DT
share/NN
./.
Sales/NNS
rose/VBD
2.2/CD
%/NN
to/TO
$/$
711.9/CD
million/CD
from/IN
$/$
696.1/CD
million/CD
./.
Amoco/NNP
's/POS
refining/NN
and/CC
marketing/NN
profit/NN
in/IN
the/DT
quarter/NN
fell/VBD
to/TO
$/$
134/CD
million/CD
from/IN
$/$
319/CD
million/CD
./.
Chemical/NN
earnings/NNS
declined/VBD
by/IN
one-third/JJ
to/TO
$/$
120/CD
million/CD
last/JJ
year/NN
's/POS
robust/JJ
levels/NNS
./.
Amoco/NNP
's/POS
domestic/JJ
oil/NN
and/CC
natural/JJ
gas/NN
operations/NNS
recorded/VBD
a/DT
profit/NN
of/IN
$/$
104/CD
million/CD
in/IN
the/DT
quarter/NN
compared/VBN
with/IN
a/DT
loss/NN
of/IN
$/$
5/CD
million/CD
,/,
``/``
primarily/RB
on/IN
the/DT
strength/NN
of/IN
higher/JJR
crude/NN
oil/NN
prices/NNS
,/,
''/''
said/VBD
Chairman/NNP
Richard/NNP
M./NNP
Morrow/NNP
./.
Amoco/NNP
also/RB
sharply/RB
boosted/VBD
natural-gas/JJ
output/NN
,/,
part/NN
of/IN
it/PRP
from/IN
properties/NNS
acquired/VBN
from/IN
Tenneco/NNP
Inc./NNP
last/JJ
year/NN
./.
But/CC
foreign/JJ
exploration/NN
and/CC
production/NN
earnings/NNS
fell/VBD
sharply/RB
,/,
to/TO
$/$
12/CD
million/CD
from/IN
$/$
95/CD
million/CD
./.
Higher/JJR
oil/NN
prices/NNS
were/VBD
n't/RB
enough/JJ
to/TO
offset/VB
a/DT
roughly/RB
$/$
20/CD
million/CD
charge/NN
related/VBN
to/TO
a/DT
10/CD
%/NN
reduction/NN
in/IN
Amoco/NNP
's/POS
Canadian/JJ
work/NN
force/NN
as/RB
well/RB
as/IN
increased/VBN
exploration/NN
expenses/NNS
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Amoco/NNP
said/VBD
that/IN
net/JJ
income/NN
fell/VBD
to/TO
$/$
1.29/CD
billion/CD
from/IN
$/$
1.69/CD
billion/CD
but/CC
if/IN
unusual/JJ
items/NNS
are/VBP
excluded/VBN
,/,
operations/NNS
produced/VBD
essentially/RB
flat/JJ
results/NNS
./.
Revenue/NN
rose/VBD
12/CD
%/NN
to/TO
$/$
19.93/CD
billion/CD
from/IN
$/$
17.73/CD
billion/CD
./.
James/NNP
F./NNP
Gero/NNP
,/,
former/JJ
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
Varo/NNP
Inc./NNP
,/,
and/CC
Richard/NNP
J./NNP
Hatchett/NNP
III/NNP
,/,
a/DT
Dallas/NNP
investment/NN
banker/NN
,/,
were/VBD
elected/VBN
directors/NNS
of/IN
this/DT
medical-products/NNS
concern/NN
,/,
boosting/VBG
the/DT
board/NN
to/TO
seven/CD
members/NNS
./.
For/IN
retailers/NNS
,/,
Christmas/NNP
,/,
not/RB
Halloween/NNP
,/,
promises/VBZ
to/TO
be/VB
this/DT
year/NN
's/POS
spookiest/JJS
season/NN
./.
Many/JJ
retailers/NNS
fear/VBP
a/DT
price/NN
war/NN
will/MD
erupt/VB
if/IN
cash-strapped/JJ
companies/NNS
such/JJ
as/IN
Campeau/NNP
Corp./NNP
slash/VBP
tags/NNS
to/TO
spur/VB
sales/NNS
./.
Concerns/NNS
about/IN
the/DT
stock/NN
market/NN
,/,
doubts/NNS
about/IN
the/DT
economy/NN
in/IN
general/JJ
and/CC
rising/VBG
competition/NN
from/IN
catalog/NN
companies/NNS
also/RB
haunt/VBP
store/NN
operators/NNS
./.
``/``
Profits/NNS
at/IN
Christmas/NNP
could/MD
be/VB
under/IN
attack/NN
for/IN
every/DT
retailer/NN
,/,
''/''
asserts/VBZ
Norman/NNP
Abramson/NNP
,/,
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
of/IN
Clothestime/NNP
Inc./NNP
,/,
an/DT
off-price/JJ
chain/NN
./.
Even/RB
if/IN
there/EX
is/VBZ
n't/RB
any/DT
widespread/JJ
discounting/NN
,/,
the/DT
outlook/NN
for/IN
industry/NN
profits/NNS
is/VBZ
n't/RB
good/JJ
./.
Management/NNP
Horizons/NNP
forecasts/VBZ
a/DT
1.4/CD
%/NN
profit/NN
decline/NN
for/IN
non-auto/JJ
retailers/NNS
this/DT
year/NN
,/,
after/IN
annual/JJ
drops/NNS
that/WDT
averaged/VBD
4.5/CD
%/NN
in/IN
1988/CD
and/CC
1987/CD
./.
``/``
For/IN
the/DT
last/JJ
two/CD
and/CC
a/DT
half/JJ
years/NNS
,/,
retailing/NN
has/VBZ
been/VBN
in/IN
a/DT
mild/JJ
recession/NN
,/,
''/''
says/VBZ
Carl/NNP
Steidtmann/NNP
,/,
chief/JJ
economist/NN
at/IN
the/DT
Columbus/NNP
,/,
Ohio/NNP
,/,
consulting/VBG
firm/NN
./.
This/DT
year/NN
,/,
many/JJ
stores/NNS
are/VBP
entering/VBG
the/DT
Christmas/NNP
season/NN
in/IN
turmoil/NN
:/:
Bonwit/NNP
Teller/NNP
and/CC
B./NNP
Altman/NNP
parent/NN
L.J./NNP
Hooker/NNP
Corp./NNP
is/VBZ
operating/VBG
under/IN
Chapter/NNP
11/CD
of/IN
the/DT
federal/JJ
Bankruptcy/NNP
Code/NNP
;/:
B.A.T/NNP
Industries/NNP
PLC/NNP
's/POS
healthy/JJ
Saks/NNP
Fifth/NNP
Avenue/NNP
and/CC
Marshall/NNP
Field/NNP
's/POS
chains/NNS
are/VBP
on/IN
the/DT
auction/NN
block/NN
;/:
Campeau/NNP
's/POS
Bloomingdale/NNP
's/POS
is/VBZ
also/RB
on/IN
the/DT
block/NN
./.
Industry/NN
observers/NNS
expect/VBP
a/DT
wide/JJ
divergence/NN
in/IN
performance/NN
./.
Stores/NNS
in/IN
a/DT
state/NN
of/IN
confusion/NN
are/VBP
likely/JJ
to/TO
fare/VB
poorly/RB
,/,
and/CC
to/TO
lose/VB
customers/NNS
to/TO
stable/JJ
chains/NNS
such/JJ
as/IN
Limited/NNP
Inc./NNP
,/,
May/NNP
Department/NNP
Stores/NNP
Co./NNP
and/CC
Dillard/NNP
Department/NNP
Stores/NNP
Inc./NNP
,/,
which/WDT
should/MD
do/VB
well/RB
./.
``/``
There/EX
are/VBP
going/VBG
to/TO
be/VB
very/RB
clear/JJ
winners/NNS
and/CC
very/RB
clear/JJ
losers/NNS
,/,
''/''
says/VBZ
Cynthia/NNP
Turk/NNP
,/,
a/DT
Touche/NNP
Ross/NNP
&/CC
Co./NNP
retail/JJ
consultant/NN
./.
Says/VBZ
Mr./NNP
Steidtmann/NNP
:/:
``/``
I/PRP
'm/VBP
looking/VBG
for/IN
a/DT
bi-polar/JJ
Christmas/NNP
./.
''/''
Economists/NNS
expect/VBP
general/JJ
merchandise/NN
sales/NNS
in/IN
the/DT
fourth/JJ
quarter/NN
to/TO
rise/VB
4.5/CD
%/NN
to/TO
6/CD
%/NN
from/IN
year-ago/JJ
figures/NNS
./.
But/CC
Mr./NNP
Steidtmann/NNP
predicts/VBZ
that/IN
healthy/JJ
stores/NNS
hawking/VBG
mostly/RB
apparel/NN
could/MD
ring/VB
up/RP
gains/NNS
of/IN
as/RB
much/JJ
as/IN
25/CD
%/NN
to/TO
30/CD
%/NN
./.
Troubled/VBN
chains/NNS
could/MD
see/VB
their/PRP$
sales/NNS
drop/VB
as/RB
much/RB
as/IN
8/CD
%/NN
,/,
he/PRP
believes/VBZ
,/,
as/IN
managers/NNS
distracted/VBN
by/IN
fears/NNS
about/IN
the/DT
future/NN
allow/VBP
their/PRP$
stores/NNS
to/TO
get/VB
sloppy/JJ
./.
Thin/JJ
merchandise/NN
selections/NNS
at/IN
the/DT
most/RBS
troubled/VBN
chains/NNS
are/VBP
also/RB
expected/VBN
to/TO
hurt/VB
sales/NNS
./.
Catalog/NN
companies/NNS
are/VBP
likely/JJ
to/TO
pose/VB
a/DT
bigger/JJR
threat/NN
to/TO
all/DT
stores/NNS
this/DT
year/NN
,/,
particularly/RB
in/IN
December/NNP
./.
More/JJR
than/IN
200/CD
catalog/NN
outfits/NN
are/VBP
promoting/VBG
a/DT
low-cost/JJ
Federal/NNP
Express/NNP
service/NN
that/WDT
guarantees/VBZ
pre-Christmas/JJ
delivery/NN
of/IN
orders/NNS
made/VBN
by/IN
a/DT
certain/JJ
date/NN
./.
``/``
Traditionally/RB
,/,
consumers/NNS
were/VBD
concerned/VBN
about/IN
ordering/VBG
after/IN
the/DT
first/JJ
of/IN
December/NNP
because/IN
they/PRP
did/VBD
n't/RB
believe/VB
they/PRP
would/MD
get/VB
it/PRP
by/IN
Christmas/NNP
,/,
''/''
says/VBZ
Adam/NNP
Strum/NNP
,/,
chairman/NN
of/IN
the/DT
Wine/NNP
Enthusiast/NNP
Inc./NNP
,/,
which/WDT
sells/VBZ
wine/NN
cellars/NNS
and/CC
accessories/NNS
through/IN
the/DT
mail/NN
./.
Using/VBG
Federal/NNP
Express/NNP
delivery/NN
last/JJ
year/NN
,/,
Mr./NNP
Strum/NNP
says/VBZ
,/,
``/``
December/NNP
was/VBD
our/PRP$
biggest/JJS
month/NN
./.
''/''
Even/RB
Sears/NNP
,/,
Roebuck/NNP
&/CC
Co./NNP
is/VBZ
getting/VBG
into/IN
the/DT
act/NN
,/,
offering/VBG
for/IN
the/DT
first/JJ
time/NN
to/TO
have/VB
Federal/NNP
Express/NNP
deliver/VB
toys/NNS
ordered/VBN
by/IN
Dec./NNP
20/CD
from/IN
its/PRP$
Wish/NNP
Book/NNP
catalog/NN
./.
K/NNP
mart/NNP
Corp./NNP
Chairman/NNP
Joseph/NNP
E./NNP
Antonini/NNP
summed/VBD
up/RP
his/PRP$
outlook/NN
for/IN
the/DT
Christmas/NNP
season/NN
as/IN
``/``
not/RB
troublesome/JJ
./.
''/''
He/PRP
's/VBZ
not/RB
predicting/VBG
a/DT
blockbuster/NN
,/,
but/CC
he/PRP
is/VBZ
``/``
more/RBR
optimistic/JJ
than/IN
three/CD
months/NNS
ago/RB
''/''
because/IN
employment/NN
remains/VBZ
strong/JJ
and/CC
inflation/NN
low/JJ
./.
Other/JJ
retailers/NNS
are/VBP
also/RB
preparing/VBG
for/IN
a/DT
ho-hum/JJ
holiday/NN
./.
Philip/NNP
M./NNP
Hawley/NNP
,/,
chairman/NN
of/IN
Carter/NNP
Hawley/NNP
Hale/NNP
Stores/NNP
Inc./NNP
,/,
expects/VBZ
sales/NNS
at/IN
department/NN
stores/NNS
open/JJ
at/IN
least/JJS
a/DT
year/NN
to/TO
rise/VB
a/DT
modest/JJ
3/CD
%/NN
to/TO
5/CD
%/NN
over/IN
last/JJ
year/NN
's/POS
totals/NNS
,/,
both/DT
for/IN
his/PRP$
company/NN
and/CC
the/DT
industry/NN
in/IN
general/NN
./.
``/``
I/PRP
'm/VBP
not/RB
looking/VBG
for/IN
a/DT
runaway/JJ
Christmas/NNP
at/IN
all/DT
,/,
''/''
he/PRP
says/VBZ
./.
``/``
It/PRP
is/VBZ
n't/RB
a/DT
real/JJ
boom/NN
holiday/NN
season/NN
in/IN
our/PRP$
eyes/NNS
,/,
''/''
says/VBZ
Woolworth/NNP
Corp./NNP
Chairman/NNP
Harold/NNP
E./NNP
Sells/NNP
,/,
``/``
but/CC
it/PRP
is/VBZ
n't/RB
going/VBG
to/TO
be/VB
a/DT
bust/NN
either/RB
./.
''/''
Mr./NNP
Sells/NNP
expects/VBZ
fourth-quarter/JJ
sales/NNS
at/IN
his/PRP$
company/NN
--/:
which/WDT
besides/IN
Woolworth/NNP
stores/NNS
includes/VBZ
Kinney/NNP
and/CC
Foot/NNP
Locker/NNP
shoe/NN
stores/NNS
and/CC
other/JJ
specialty/NN
chains/NNS
--/:
to/TO
rise/VB
``/``
pretty/RB
much/RB
in/IN
line/NN
''/''
with/IN
its/PRP$
year-to-date/JJ
increases/NNS
of/IN
between/IN
8/CD
%/NN
and/CC
9/CD
%/NN
./.
The/DT
estimate/NN
includes/VBZ
the/DT
results/NNS
of/IN
new/JJ
stores/NNS
./.
A/DT
consumer/NN
poll/NN
conducted/VBN
in/IN
early/JJ
September/NNP
by/IN
Leo/NNP
J./NNP
Shapiro/NNP
&/CC
Associates/NNP
,/,
a/DT
market/NN
researcher/NN
based/VBN
in/IN
Chicago/NNP
,/,
also/RB
suggests/VBZ
a/DT
modest/JJ
holiday/NN
./.
Of/IN
the/DT
450/CD
survey/NN
respondents/NNS
,/,
35/CD
%/NN
said/VBD
they/PRP
expect/VBP
to/TO
spend/VB
less/JJR
buying/VBG
Christmas/NNP
gifts/NNS
this/DT
year/NN
than/IN
last/JJ
year/NN
,/,
while/IN
28/CD
%/NN
said/VBD
they/PRP
expect/VBP
to/TO
spend/VB
more/JJR
and/CC
37/CD
%/NN
said/VBD
their/PRP$
gift/NN
budget/NN
would/MD
stay/VB
the/DT
same/JJ
./.
The/DT
results/NNS
are/VBP
almost/RB
identical/JJ
to/TO
Shapiro/NNP
's/POS
September/NNP
1988/CD
numbers/NNS
./.
Retailers/NNS
could/MD
get/VB
a/DT
boost/NN
this/DT
year/NN
from/IN
the/DT
calendar/NN
./.
Christmas/NNP
falls/VBZ
on/IN
a/DT
Monday/NNP
,/,
creating/VBG
a/DT
big/JJ
last-minute/JJ
weekend/NN
opportunity/NN
for/IN
stores/NNS
./.
Most/JJS
will/MD
stay/VB
open/JJ
late/JJ
Saturday/NNP
night/NN
and/CC
open/VB
their/PRP$
doors/NNS
again/RB
Sunday/NNP
./.
But/CC
many/JJ
consumers/NNS
probably/RB
will/MD
use/VB
the/DT
extra/JJ
time/NN
to/TO
put/VB
off/RP
some/DT
purchasing/NN
until/IN
the/DT
last/JJ
minute/NN
./.
``/``
What/WP
you/PRP
'll/MD
hear/VB
as/IN
we/PRP
get/VBP
into/IN
December/NNP
is/VBZ
that/IN
sales/NNS
are/VBP
sluggish/JJ
,/,
''/''
predicts/VBZ
Woolworth/NN
's/POS
Mr./NNP
Sells/NNP
./.
``/``
The/DT
week/NN
ending/VBG
the/DT
24th/JJ
is/VBZ
going/VBG
to/TO
save/VB
the/DT
entire/JJ
month/NN
for/IN
everyone/NN
./.
''/''
The/DT
Spanish/JJ
author/NN
Camilo/NNP
Jose/NNP
Cela/NNP
won/VBD
the/DT
Nobel/NNP
Prize/NNP
for/IN
literature/NN
yesterday/NN
,/,
a/DT
surprising/JJ
choice/NN
,/,
but/CC
given/VBN
the/DT
Swedish/NNP
Academy/NNP
's/POS
past/JJ
perversities/NNS
,/,
hardly/RB
the/DT
most/RBS
undeserved/JJ
and/CC
ridiculous/JJ
accolade/NN
handed/VBN
out/RP
by/IN
the/DT
awarding/VBG
committee/NN
./.
In/IN
Spain/NNP
,/,
anyway/RB
,/,
the/DT
73-year-old/JJ
Mr./NNP
Cela/NNP
enjoys/VBZ
some/DT
renown/NN
for/IN
the/DT
novels/NNS
and/CC
travel/NN
books/NNS
he/PRP
wrote/VBD
during/IN
the/DT
parched/JJ
Franco/NNP
years/NNS
,/,
the/DT
everyday/JJ
poverty/NN
and/CC
stagnant/JJ
atmosphere/NN
of/IN
which/WDT
he/PRP
described/VBD
in/IN
brutally/RB
direct/JJ
,/,
vivid/JJ
prose/NN
,/,
beginning/VBG
with/IN
``/``
The/DT
Family/NNP
of/IN
Pascal/NNP
Duarte/NNP
''/''
(/(
1942/CD
Unlike/IN
other/JJ
writers/NNS
who/WP
either/RB
battled/VBD
the/DT
fascists/NNS
during/IN
the/DT
Civil/NNP
War/NNP
,/,
or/CC
left/VBD
Spain/NNP
when/WRB
Franco/NNP
triumphed/VBD
,/,
Mr./NNP
Cela/NNP
fought/VBD
briefly/RB
on/IN
the/DT
general/NN
's/POS
side/NN
,/,
no/DT
doubt/NN
earning/VBG
with/IN
his/PRP$
war/NN
wound/VBN
some/DT
forbearance/NN
when/WRB
he/PRP
went/VBD
on/RB
to/TO
depict/VB
a/DT
country/NN
with/IN
a/DT
high/JJ
population/NN
of/IN
vagabonds/NNS
,/,
murderers/NNS
and/CC
rural/JJ
idiots/NNS
trudging/VBG
aimlessly/RB
through/IN
a/DT
dried-out/JJ
land/NN
./.
Still/RB
,/,
it/PRP
was/VBD
in/IN
Argentine/JJ
editions/NNS
that/IN
his/PRP$
countrymen/NNS
first/RB
read/VBD
his/PRP$
story/NN
of/IN
Pascal/NNP
Duarte/NNP
,/,
a/DT
field/NN
worker/NN
who/WP
stabbed/VBD
his/PRP$
mother/NN
to/TO
death/NN
and/CC
has/VBZ
no/DT
regrets/NNS
as/IN
he/PRP
awaits/VBZ
his/PRP$
end/NN
in/IN
a/DT
prison/NN
cell/NN
:/:
``/``
Fate/NNP
directs/VBZ
some/DT
men/NNS
down/IN
the/DT
flower-bordered/JJ
path/NN
,/,
and/CC
others/NNS
down/IN
the/DT
road/NN
bordered/VBN
with/IN
thistles/NNS
and/CC
prickly/JJ
pears/NNS
./.
The/DT
lucky/JJ
ones/NNS
gaze/VBP
out/RB
at/IN
life/NN
with/IN
serene/JJ
eyes/NNS
and/CC
smile/VBP
with/IN
a/DT
face/NN
of/IN
innocence/NN
at/IN
their/PRP$
perfumed/JJ
happiness/NN
./.
The/DT
others/NNS
endure/VBP
the/DT
hot/JJ
sun/NN
of/IN
the/DT
plains/NNS
and/CC
scowl/VBP
like/IN
cornered/JJ
wild/JJ
beasts/NNS
./.
''/''
Mr./NNP
Cela/NNP
himself/PRP
was/VBD
one/CD
of/IN
the/DT
lucky/JJ
ones/NNS
,/,
his/PRP$
fortunes/NNS
steadily/RB
increasing/VBG
over/IN
the/DT
decades/NNS
he/PRP
spent/VBD
putting/VBG
out/RP
some/DT
70/CD
travelogues/NNS
,/,
novels/NNS
,/,
short/JJ
story/NN
collections/NNS
and/CC
poetry/NN
./.
These/DT
days/NNS
,/,
he/PRP
is/VBZ
as/RB
known/VBN
for/IN
his/PRP$
flamboyant/JJ
tastes/NNS
and/CC
the/DT
youthful/JJ
muse/NN
who/WP
shares/VBZ
his/PRP$
life/NN
as/IN
he/PRP
is/VBZ
for/IN
his/PRP$
books/NNS
./.
The/DT
man/NN
who/WP
wore/VBD
out/RP
his/PRP$
shoes/NNS
wandering/VBG
around/IN
Guadalajara/NNP
in/IN
1958/CD
,/,
describing/VBG
in/IN
his/PRP$
travel/NN
book/NN
``/``
Viaje/NNP
a/NNP
la/NNP
Alcarria/NNP
''/''
how/WRB
he/PRP
scrounged/VBD
for/IN
food/NN
and/CC
stayed/VBD
in/IN
squalid/JJ
inns/NNS
,/,
now/RB
tours/VBZ
Spain/NNP
in/IN
a/DT
Rolls-Royce/NNP
./.
Of/IN
his/PRP$
10/CD
novels/NNS
,/,
``/``
The/DT
Hive/NNP
''/''
(/(
1951/CD
full/JJ
of/IN
sharp/JJ
vignettes/NNS
of/IN
Madrid/NNP
life/NN
and/CC
centered/VBD
on/IN
a/DT
cafe/NN
run/VBN
by/IN
Dona/NNP
Rosa/NNP
,/,
a/DT
foul-mouthed/JJ
,/,
broad-based/JJ
woman/NN
with/IN
blackened/VBN
little/JJ
teeth/NNS
encrusted/VBN
in/IN
filth/NN
,/,
used/VBN
to/TO
be/VB
available/JJ
in/IN
English/NNP
,/,
translated/VBN
by/IN
J.M./NNP
Cohen/NNP
and/CC
published/VBN
by/IN
Ecco/NNP
Press/NNP
,/,
which/WDT
now/RB
no/DT
doubt/NN
regrets/VBZ
relinquishing/VBG
its/PRP$
copyright/NN
./.
Here/RB
is/VBZ
an/DT
excerpt/NN
:/:
The/DT
lonely/JJ
woman/NN
walks/VBZ
on/RB
in/IN
the/DT
direction/NN
of/IN
the/DT
Plaza/NNP
de/IN
Alonso/NNP
Martinez/NNP
./.
Two/CD
men/NNS
have/VBP
a/DT
conversation/NN
behind/IN
one/CD
of/IN
the/DT
windows/NNS
of/IN
the/DT
cafe/NN
on/IN
the/DT
corner/NN
of/IN
the/DT
boulevard/NN
./.
Both/DT
are/VBP
young/JJ
,/,
one/CD
twenty/CD
odd/JJ
,/,
the/DT
other/JJ
thirty/CD
odd/JJ
./.
The/DT
older/JJR
one/CD
looks/VBZ
like/IN
a/DT
member/NN
of/IN
the/DT
jury/NN
for/IN
a/DT
literary/JJ
award/NN
,/,
the/DT
younger/JJR
one/CD
looks/VBZ
like/IN
a/DT
novelist/NN
./.
It/PRP
is/VBZ
evident/JJ
that/IN
their/PRP$
conversation/NN
runs/VBZ
more/RBR
or/CC
less/RBR
on/IN
the/DT
following/JJ
lines/NNS
:/:
``/``
I/PRP
've/VBP
submitted/VBN
the/DT
manuscript/NN
of/IN
my/PRP$
novel/NN
under/IN
the/DT
title/NN
`/``
Teresa/NNP
de/IN
Cepeda/NNP
,/,
'/''
and/CC
in/IN
it/PRP
I/PRP
've/VBP
treated/VBN
a/DT
few/JJ
neglected/VBN
aspects/NNS
of/IN
that/DT
eternal/JJ
problem/NN
which/WDT
.../:
''/''
``/``
Oh/UH
,/,
yes/RB
./.
Will/MD
you/PRP
pour/VBP
me/PRP
a/DT
drop/NN
of/IN
water/NN
,/,
if/IN
you/PRP
do/VBP
n't/RB
mind/VB
?/.
''/''
``/``
With/IN
pleasure/NN
./.
I/PRP
've/VBP
revised/VBN
it/PRP
several/JJ
times/NNS
and/CC
I/PRP
think/VBP
I/PRP
may/MD
say/VB
with/IN
pride/NN
that/IN
there/EX
is/VBZ
not/RB
a/DT
single/JJ
discordant/JJ
word/NN
in/IN
the/DT
whole/JJ
text/NN
./.
''/''
``/``
How/WRB
interesting/JJ
./.
''/''
``/``
I/PRP
think/VBP
so/RB
./.
I/PRP
do/VBP
n't/RB
know/VB
the/DT
quality/NN
of/IN
the/DT
works/NNS
my/PRP$
colleagues/NNS
have/VBP
sent/VBN
in/RP
,/,
but/CC
in/IN
any/DT
case/NN
I/PRP
feel/VBP
confident/JJ
that/IN
good/JJ
sense/NN
and/CC
honest/JJ
judgment/NN
.../:
''/''
``/``
Rest/VB
assured/VBN
,/,
we/PRP
proceed/VBP
with/IN
exemplary/JJ
fairness/NN
./.
''/''
``/``
I/PRP
do/VBP
n't/RB
doubt/VB
it/PRP
for/IN
a/DT
moment/NN
./.
It/PRP
does/VBZ
not/RB
matter/VB
if/IN
one/PRP
is/VBZ
defeated/VBN
,/,
provided/VBD
the/DT
work/NN
that/WDT
gets/VBZ
the/DT
award/NN
has/VBZ
unmistakable/JJ
qualities/NNS
./.
What/WP
's/VBZ
so/RB
discouraging/JJ
is/VBZ
.../:
''/''
In/IN
passing/VBG
the/DT
window/NN
,/,
Senorita/NNP
Elvira/NNP
gives/VBZ
them/PRP
a/DT
smile/NN
--/:
simply/RB
out/IN
of/IN
habit/NN
./.
Ashland/NNP
Oil/NNP
Inc./NNP
said/VBD
it/PRP
will/MD
take/VB
after-tax/JJ
charges/NNS
of/IN
$/$
78/CD
million/CD
,/,
or/CC
$/$
1.40/CD
a/DT
share/NN
,/,
in/IN
its/PRP$
fiscal/JJ
fourth/JJ
quarter/NN
,/,
ended/VBN
Sept./NNP
30/CD
./.
Because/IN
of/IN
the/DT
charge/NN
,/,
Ashland/VBP
expects/VBZ
to/TO
report/VB
a/DT
loss/NN
for/IN
the/DT
fourth/JJ
quarter/NN
and/CC
``/``
significantly/RB
lower/JJR
results/NNS
''/''
for/IN
fiscal/JJ
1989/CD
./.
The/DT
oil/NN
refiner/NN
said/VBD
it/PRP
will/MD
report/VB
fiscal/JJ
fourth/JJ
quarter/NN
and/CC
1989/CD
results/NNS
next/JJ
week/NN
./.
The/DT
company/NN
earned/VBD
$/$
66/CD
million/CD
,/,
or/CC
$/$
1.19/CD
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
2.1/CD
billion/CD
in/IN
the/DT
year-ago/JJ
fourth/JJ
quarter/NN
./.
For/IN
fiscal/JJ
1988/CD
,/,
Ashland/NNP
had/VBD
net/JJ
of/IN
$/$
224/CD
million/CD
,/,
or/CC
$/$
4.01/CD
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
7.8/CD
billion/CD
./.
Both/DT
revenue/NN
figures/NNS
exclude/VBP
excise/NN
taxes/NNS
./.
The/DT
charges/NNS
consist/VBP
of/IN
:/:
a/DT
$/$
25/CD
million/CD
after-tax/JJ
charge/NN
to/TO
cover/VB
cost/NN
overruns/NNS
in/IN
Ashland/NNP
's/POS
Riley/NNP
Consolidated/NNP
subsidiary/NN
;/:
a/DT
previously/RB
announced/VBN
$/$
38/CD
million/CD
after-tax/JJ
charge/NN
resulting/VBG
from/IN
a/DT
$/$
325/CD
million/CD
settlement/NN
with/IN
National/NNP
Iranian/NNP
Oil/NNP
Co./NNP
and/CC
a/DT
$/$
15/CD
million/CD
after-tax/JJ
charge/NN
from/IN
the/DT
previously/RB
announced/VBN
sale/NN
of/IN
its/PRP$
Ashland/NNP
Technology/NNP
Corp./NNP
subsidiary/NN
./.
Ashland/NNP
expects/VBZ
that/DT
sale/NN
to/TO
be/VB
complete/JJ
next/JJ
year/NN
./.
The/DT
charge/NN
for/IN
the/DT
Riley/NNP
subsidiary/NN
is/VBZ
for/IN
expected/VBN
costs/NNS
to/TO
correct/VB
problems/NNS
with/IN
certain/JJ
bed/NN
boilers/NNS
built/VBN
for/IN
utilities/NNS
./.
The/DT
charge/NN
will/MD
be/VB
added/VBN
to/TO
$/$
20/CD
million/CD
in/IN
reserves/NNS
established/VBN
a/DT
year/NN
ago/RB
to/TO
cover/VB
the/DT
cost/NN
overruns/NNS
./.
When/WRB
President/NNP
Bush/NNP
arrives/VBZ
here/RB
next/JJ
week/NN
for/IN
a/DT
hemispheric/JJ
summit/NN
organized/VBN
to/TO
commemorate/VB
a/DT
century/NN
of/IN
Costa/JJ
Rican/JJ
democracy/NN
,/,
will/MD
he/PRP
be/VB
able/JJ
to/TO
deliver/VB
a/DT
credible/JJ
message/NN
in/IN
the/DT
wake/NN
of/IN
the/DT
Panamanian/JJ
fiasco/NN
?/.
Undoubtedly/NNP
Mr./NNP
Bush/NNP
will/MD
be/VB
praised/VBN
by/IN
some/DT
Latin/JJ
leaders/NNS
prone/JJ
to/TO
pay/VB
lip/JJ
service/NN
to/TO
nonintervention/NN
,/,
while/IN
they/PRP
privately/RB
encourage/VBP
more/RBR
assertive/JJ
U.S./NNP
action/NN
to/TO
remove/VB
Gen./NNP
Manuel/NNP
Noriega/NNP
and/CC
safeguard/VB
their/PRP$
countries/NNS
from/IN
a/DT
Sandinista/NNP
onslaught/NN
./.
The/DT
Panamanian/JJ
affair/NN
is/VBZ
only/RB
the/DT
tip/NN
of/IN
a/DT
more/RBR
alarming/JJ
iceberg/NN
./.
It/PRP
originates/VBZ
in/IN
a/DT
Bush/NNP
administration/NN
decision/NN
not/RB
to/TO
antagonize/VB
the/DT
U.S./NNP
Congress/NNP
and/CC
avoid/VB
,/,
at/IN
all/DT
costs/NNS
,/,
being/VBG
accused/VBN
of/IN
meddling/VBG
in/IN
the/DT
region/NN
./.
The/DT
result/NN
has/VBZ
been/VBN
a/DT
dangerous/JJ
vacuum/NN
of/IN
U.S./NNP
leadership/NN
,/,
which/WDT
leaves/VBZ
Central/NNP
America/NNP
open/JJ
to/TO
Soviet/JJ
adventurism/NN
./.
``/``
The/DT
influence/NN
of/IN
the/DT
U.S./NNP
is/VBZ
not/RB
being/VBG
felt/VBD
in/IN
Central/NNP
America/NNP
;/:
Washington/NNP
's/POS
decisions/NNS
do/VBP
not/RB
respond/VB
to/TO
a/DT
policy/NN
,/,
and/CC
are/VBP
divorced/VBN
from/IN
reality/NN
,/,
''/''
says/VBZ
Fernando/NNP
Volio/NNP
,/,
a/DT
Costa/JJ
Rican/JJ
congressman/NN
and/CC
former/JJ
foreign/JJ
minister/NN
./.
The/DT
disarray/NN
of/IN
the/DT
Bush/NNP
administration/NN
's/POS
Latin/NNP
diplomacy/NN
was/VBD
evident/JJ
in/IN
the/DT
failure/NN
of/IN
the/DT
Organization/NNP
of/IN
American/NNP
States/NNP
to/TO
condemn/VB
categorically/RB
Gen./NNP
Noriega/NNP
./.
Faced/VBN
with/IN
this/DT
embarrassment/NN
,/,
U.S./NNP
diplomats/NNS
expressed/VBD
confidence/NN
that/IN
the/DT
influential/JJ
Rio/NNP
Group/NNP
of/IN
South/JJ
American/JJ
nations/NNS
,/,
which/WDT
gathered/VBD
last/JJ
week/NN
in/IN
Peru/NNP
,/,
would/MD
take/VB
a/DT
stronger/JJR
posture/NN
toward/IN
the/DT
Panamanian/JJ
dictator/NN
./.
But/CC
other/JJ
than/IN
a/DT
few/JJ
slaps/NNS
on/IN
the/DT
wrist/NN
,/,
Gen./NNP
Noriega/NNP
went/VBD
unpunished/JJ
by/IN
that/DT
body/NN
,/,
too/RB
;/:
he/PRP
was/VBD
not/RB
even/RB
singled/VBD
out/RP
in/IN
the/DT
closing/VBG
statement/NN
./.
Now/RB
Mr./NNP
Bush/NNP
will/MD
come/VB
to/TO
Costa/NNP
Rica/NNP
and/CC
encounter/VB
Nicaraguan/JJ
strongman/NN
Daniel/NNP
Ortega/NNP
,/,
eager/JJ
for/IN
photo/JJ
opportunities/NNS
with/IN
the/DT
U.S./NNP
president/NN
./.
The/DT
host/NN
,/,
Costa/JJ
Rican/JJ
President/NNP
Oscar/NNP
Arias/NNP
,/,
did/VBD
not/RB
invite/VB
Chile/NNP
,/,
Cuba/NNP
,/,
Panama/NNP
or/CC
Haiti/NNP
to/TO
the/DT
summit/NN
,/,
which/WDT
was/VBD
to/TO
be/VB
restricted/VBN
to/TO
democracies/NNS
./.
However/RB
,/,
Mr./NNP
Ortega/NNP
was/VBD
included/VBN
./.
Formally/RB
upgrading/VBG
the/DT
Sandinistas/NNS
to/TO
a/DT
democratic/JJ
status/NN
was/VBD
an/DT
initiative/NN
harshly/RB
criticized/VBN
in/IN
the/DT
Costa/JJ
Rican/JJ
press/NN
./.
Even/RB
Carlos/NNP
Manuel/NNP
Castillo/NNP
--/:
the/DT
presidential/JJ
candidate/NN
for/IN
Mr./NNP
Arias/NNP
's/POS
National/NNP
Liberation/NNP
Party/NNP
--/:
made/VBD
public/JJ
his/PRP$
opposition/NN
to/TO
the/DT
presence/NN
of/IN
Nicaragua/NNP
``/``
in/IN
a/DT
democratic/JJ
festivity/NN
./.
''/''
Nevertheless/RB
,/,
the/DT
Bush/NNP
administration/NN
agreed/VBD
to/TO
the/DT
dubious/JJ
arrangement/NN
in/IN
July/NNP
,/,
a/DT
few/JJ
weeks/NNS
before/IN
the/DT
Central/JJ
American/JJ
presidents/NNS
met/VBD
in/IN
Tela/NNP
,/,
Honduras/NNP
,/,
to/TO
discuss/VB
a/DT
timetable/NN
for/IN
disbanding/VBG
the/DT
anti-Sandinista/JJ
rebels/NNS
./.
According/VBG
to/TO
officials/NNS
in/IN
Washington/NNP
,/,
the/DT
State/NNP
Department/NNP
hoped/VBD
that/IN
by/IN
pleasing/VBG
President/NNP
Arias/NNP
,/,
it/PRP
would/MD
gain/VB
his/PRP$
support/NN
to/TO
postpone/VB
any/DT
decision/NN
on/IN
the/DT
Contras/NNP
until/IN
after/IN
Mr./NNP
Ortega/NNP
's/POS
promises/NNS
of/IN
democratic/JJ
elections/NNS
were/VBD
tested/VBN
next/IN
February/NNP
./.
However/RB
,/,
relying/VBG
on/IN
an/DT
ardent/JJ
critic/NN
of/IN
the/DT
Reagan/NNP
administration/NN
and/CC
the/DT
Contra/NNP
movement/NN
for/IN
help/NN
in/IN
delaying/VBG
the/DT
disarming/VBG
of/IN
the/DT
Contras/NNS
was/VBD
risky/JJ
business/NN
./.
And/CC
even/RB
some/DT
last-minute/JJ
phone/NN
calls/NNS
that/IN
Mr./NNP
Bush/NNP
made/VBD
(/(
at/IN
the/DT
behest/NN
of/IN
some/DT
conservative/JJ
U.S./NNP
senators/NNS
the/DT
U.S./NNP
position/NN
failed/VBD
to/TO
stop/VB
the/DT
march/NN
of/IN
Mr./NNP
Arias/NNP
's/POS
agenda/NN
./.
Prior/RB
to/TO
this/DT
episode/NN
,/,
Sen./NNP
Christopher/NNP
Dodd/NNP
D./NNP
,/,
Conn./NNP
an/DT
open/JJ
field/NN
,/,
undertook/VBD
a/DT
personal/JJ
diplomatic/JJ
mission/NN
through/IN
Central/NNP
America/NNP
to/TO
promote/VB
an/DT
early/JJ
disbanding/NN
of/IN
the/DT
rebels/NNS
./.
Visiting/VBG
Nicaragua/NNP
,/,
he/PRP
praised/VBD
the/DT
Sandinistas/NNS
for/IN
their/PRP$
electoral/JJ
system/NN
and/CC
chided/VBD
the/DT
Bush/NNP
administration/NN
for/IN
not/RB
rewarding/VBG
the/DT
Sandinistas/NNS
./.
In/IN
Honduras/NNP
,/,
where/WRB
the/DT
Contras/NNP
are/VBP
a/DT
hot/JJ
political/JJ
issue/NN
,/,
he/PRP
promised/VBD
to/TO
help/VB
unblock/VB
some/DT
$/$
70/CD
million/CD
in/IN
assistance/NN
withheld/VBN
due/JJ
to/TO
the/DT
failure/NN
of/IN
local/JJ
agencies/NNS
to/TO
comply/VB
with/IN
conditions/NNS
agreed/VBD
upon/RP
with/IN
Washington/NNP
./.
Aid/NN
was/VBD
also/RB
the/DT
gist/NN
of/IN
the/DT
talks/NNS
Sen./NNP
Dodd/NNP
had/VBD
with/IN
Salvadoran/JJ
President/NNP
Alfredo/NNP
Cristiani/NNP
;/:
Mr./NNP
Cristiani/NNP
's/POS
government/NN
is/VBZ
very/RB
much/RB
at/IN
the/DT
mercy/NN
of/IN
U.S./NNP
largess/NN
and/CC
is/VBZ
forced/VBN
to/TO
listen/VB
very/RB
carefully/RB
to/TO
Sen./NNP
Dodd/NNP
's/POS
likes/NN
and/CC
dislikes/NN
./.
It/PRP
was/VBD
therefore/RB
not/RB
surprising/JJ
that/IN
close/JJ
allies/NNS
of/IN
the/DT
U.S./NNP
,/,
virtually/RB
neglected/VBN
by/IN
the/DT
Bush/NNP
administration/NN
,/,
ordered/VBD
the/DT
Nicaraguan/JJ
insurgents/NNS
dismantled/VBN
by/IN
December/NNP
,/,
long/RB
before/IN
the/DT
elections/NNS
./.
Fittingly/RB
,/,
the/DT
Tela/NNP
Accords/NNP
were/VBD
nicknamed/VBN
by/IN
Hondurans/NNS
``/``
the/DT
Dodd/NNP
plan/NN
./.
''/''
The/DT
individual/JJ
foreign/JJ
policy/NN
carried/VBD
out/RP
by/IN
U.S./NNP
legislators/NNS
adds/VBZ
to/TO
a/DT
confusing/JJ
U.S./NNP
performance/NN
that/WDT
has/VBZ
emboldened/VBN
Soviet/JJ
initiatives/NNS
in/IN
Central/NNP
America/NNP
./.
On/IN
Oct./NNP
3/CD
,/,
following/VBG
conversations/NNS
with/IN
Secretary/NNP
of/IN
State/NNP
James/NNP
Baker/NNP
,/,
Soviet/NNP
Foreign/NNP
Minister/NNP
Eduard/NNP
Shevardnadze/NNP
arrived/VBD
in/IN
Managua/NNP
to/TO
acclaim/VB
``/``
Nicaragua/NNP
's/POS
great/JJ
peace/NN
efforts/NNS
./.
''/''
There/RB
,/,
Mr./NNP
Shevardnadze/NNP
felt/VBD
legitimized/VBN
to/TO
unveil/VB
his/PRP$
own/JJ
peace/NN
plan/NN
:/:
The/DT
U.S.S.R./NNP
would/MD
prolong/VB
a/DT
suspension/NN
of/IN
arms/NNS
shipments/NNS
to/TO
Nicaragua/NNP
after/IN
the/DT
February/NNP
election/NN
if/IN
the/DT
U.S./NNP
did/VBD
likewise/RB
with/IN
its/PRP$
allies/NNS
in/IN
Central/NNP
America/NNP
./.
He/PRP
also/RB
called/VBD
on/IN
Nicaragua/NNP
's/POS
neighbors/NNS
to/TO
accept/VB
a/DT
``/``
military/JJ
equilibrium/NN
''/''
guaranteed/VBN
by/IN
both/DT
superpowers/NNS
./.
The/DT
Pentagon/NNP
claims/VBZ
that/IN
in/IN
spite/NN
of/IN
Moscow/NNP
's/POS
words/NNS
,/,
East/NNP
bloc/NN
weapons/NNS
continue/VBP
to/TO
flow/VB
into/IN
Nicaragua/NNP
through/IN
Cuba/NNP
at/IN
near-record/JJ
levels/NNS
./.
Since/IN
Mr./NNP
Shevardnadze/NNP
's/POS
proposals/NNS
followed/VBD
discussions/NNS
with/IN
Mr./NNP
Baker/NNP
,/,
speculations/NNS
arose/VBD
that/IN
the/DT
Bush/NNP
administration/NN
was/VBD
seeking/VBG
an/DT
accommodation/NN
with/IN
the/DT
Soviets/NNS
in/IN
Central/NNP
America/NNP
./.
This/DT
scheme/NN
would/MD
fit/VB
the/DT
Arias/NNP
Plan/NNP
,/,
which/WDT
declared/VBD
a/DT
false/JJ
symmetry/NN
between/IN
Soviet/NNP
military/JJ
aid/NN
to/TO
the/DT
Sandinista/JJ
dictatorship/NN
and/CC
that/DT
provided/VBN
by/IN
Washington/NNP
to/TO
freely/RB
elected/VBN
governments/NNS
./.
Furthermore/RB
,/,
it/PRP
is/VBZ
also/RB
likely/JJ
to/TO
encourage/VB
those/DT
on/IN
Capitol/NNP
Hill/NNP
asking/VBG
for/IN
cuts/NNS
in/IN
the/DT
assistance/NN
to/TO
El/NNP
Salvador/NNP
if/IN
President/NNP
Cristiani/NNP
does/VBZ
not/RB
bend/VB
to/TO
demands/NNS
of/IN
the/DT
Marxist/JJ
guerrillas/NNS
./.
The/DT
sad/JJ
condition/NN
of/IN
U.S./NNP
policy/NN
in/IN
Central/NNP
America/NNP
is/VBZ
best/RB
depicted/VBN
by/IN
the/DT
recent/JJ
end/NN
to/TO
U.S./NNP
sponsorship/NN
of/IN
Radio/NNP
Costa/NNP
Rica/NNP
./.
In/IN
1984/CD
,/,
the/DT
Costa/NNP
Rican/NNP
government/NN
requested/VBD
help/NN
to/TO
establish/VB
a/DT
radio/NN
station/NN
in/IN
the/DT
northern/JJ
part/NN
of/IN
the/DT
country/NN
,/,
flooded/VBN
by/IN
airwaves/NNS
of/IN
Sandinista/JJ
propaganda/NN
./.
Recovering/VBG
radiophonic/JJ
sovereignty/NN
was/VBD
the/DT
purpose/NN
of/IN
Radio/NNP
Costa/NNP
Rica/NNP
,/,
funded/VBN
by/IN
the/DT
U.S./NNP
and/CC
affiliated/VBN
with/IN
the/DT
Voice/NNP
of/IN
America/NNP
VOA/NNP
A/DT
few/JJ
months/NNS
ago/RB
,/,
the/DT
Bush/NNP
administration/NN
decided/VBD
to/TO
stop/VB
this/DT
cooperation/NN
,/,
leaving/VBG
Radio/NNP
Costa/NNP
Rica/NNP
operating/VBG
on/IN
a/DT
shoestring/NN
./.
According/VBG
to/TO
news/NN
reports/NNS
,/,
the/DT
abrupt/JJ
termination/NN
was/VBD
due/JJ
to/TO
fears/NNS
that/IN
VOA/NNP
transmissions/NNS
could/MD
interfere/VB
with/IN
the/DT
peace/NN
process/NN
./.
In/IN
the/DT
meantime/NN
,/,
Russia/NNP
gave/VBD
Nicaragua/NNP
another/DT
powerful/JJ
radio/NN
transmitter/NN
,/,
which/WDT
has/VBZ
been/VBN
installed/VBN
in/IN
the/DT
city/NN
of/IN
Esteli/NNP
./.
It/PRP
is/VBZ
capable/JJ
of/IN
reaching/VBG
the/DT
entire/JJ
Caribbean/JJ
area/NN
and/CC
deep/JJ
into/IN
North/NNP
America/NNP
./.
Perhaps/RB
its/PRP$
loud/JJ
signal/NN
may/MD
generate/VB
some/DT
awareness/NN
of/IN
the/DT
Soviet/JJ
condominium/NN
being/VBG
created/VBN
in/IN
the/DT
isthmus/NN
thanks/NNS
to/TO
U.S./NNP
default/NN
./.
The/DT
Soviet/JJ
entrenchment/NN
in/IN
Nicaragua/NNP
is/VBZ
alarming/JJ
for/IN
Costa/NNP
Rica/NNP
,/,
a/DT
peaceful/JJ
democracy/NN
without/IN
an/DT
army/NN
./.
Questioned/VBN
in/IN
Washington/NNP
about/IN
what/WP
would/MD
happen/VB
if/IN
his/PRP$
much-heralded/JJ
peace/NN
plan/NN
would/MD
fail/VB
,/,
President/NNP
Arias/NNP
voiced/VBD
expectations/NNS
of/IN
direct/JJ
U.S./NNP
action/NN
./.
A/DT
poll/NN
conducted/VBN
in/IN
July/NNP
by/IN
a/DT
Gallup/NN
affiliate/NN
showed/VBD
that/IN
64/CD
%/NN
of/IN
Costa/NNS
Ricans/NNS
believe/VBP
that/IN
if/IN
their/PRP$
country/NN
is/VBZ
militarily/RB
attacked/VBN
by/IN
either/DT
Nicaragua/NNP
or/CC
Panama/NNP
,/,
the/DT
U.S./NNP
will/MD
come/VB
to/TO
its/PRP$
defense/NN
./.
But/CC
in/IN
the/DT
light/NN
of/IN
events/NNS
in/IN
Panama/NNP
,/,
where/WRB
the/DT
U.S./NNP
has/VBZ
such/JJ
clear/JJ
strategic/JJ
interests/NNS
,/,
waiting/VBG
for/IN
the/DT
Delta/NNP
Force/NNP
may/MD
prove/VB
to/TO
be/VB
a/DT
dangerous/JJ
gambit/NN
./.
Mr./NNP
Daremblum/NNP
is/VBZ
a/DT
lawyer/NN
and/CC
a/DT
columnist/NN
for/IN
La/NNP
Nacion/NNP
newspaper/NN
./.
Holiday/NNP
Corp./NNP
said/VBD
net/JJ
income/NN
jumped/VBD
89/CD
%/NN
,/,
partly/RB
on/IN
the/DT
strength/NN
of/IN
record/NN
operating/VBG
income/NN
in/IN
its/PRP$
gaming/NN
division/NN
./.
Separately/RB
,/,
the/DT
hotel/NN
and/CC
gambling/NN
giant/NN
said/VBD
it/PRP
was/VBD
proceeding/VBG
with/IN
plans/NNS
to/TO
make/VB
a/DT
tender/NN
offer/NN
and/CC
solicit/VB
consents/NNS
with/IN
respect/NN
to/TO
approximately/RB
$/$
1.4/CD
billion/CD
of/IN
its/PRP$
publicly/RB
traded/VBN
debt/NN
./.
That/DT
debt/NN
is/VBZ
part/NN
of/IN
the/DT
$/$
2.1/CD
billion/CD
of/IN
Holiday/NNP
debt/NN
that/IN
Bass/NNP
PLC/NNP
of/IN
Britain/NNP
said/VBD
it/PRP
would/MD
retire/VB
or/CC
assume/VB
when/WRB
it/PRP
agreed/VBD
to/TO
buy/VB
the/DT
Holiday/NNP
Inn/NNP
business/NN
in/IN
August/NNP
./.
Holiday/NNP
said/VBD
third-quarter/JJ
earnings/NNS
rose/VBD
to/TO
$/$
39.8/CD
million/CD
,/,
or/CC
$/$
1.53/CD
a/DT
share/NN
,/,
from/IN
$/$
21/CD
million/CD
,/,
or/CC
84/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Results/NNS
for/IN
the/DT
quarter/NN
included/VBD
$/$
19.2/CD
million/CD
in/IN
pretax/JJ
gains/NNS
from/IN
property/NN
transactions/NNS
,/,
including/VBG
the/DT
sale/NN
of/IN
one/CD
Embassy/NNP
Suites/NNP
hotel/NN
,/,
and/CC
$/$
3.5/CD
million/CD
of/IN
nonrecurring/VBG
costs/NNS
associated/VBN
with/IN
the/DT
acquisition/NN
of/IN
the/DT
Holiday/NNP
Inn/NNP
business/NN
by/IN
Bass/NNP
./.
Holiday/NNP
said/VBD
operating/NN
income/NN
related/VBN
to/TO
gaming/NN
increased/VBD
4.5/CD
%/NN
to/TO
a/DT
record/NN
$/$
61.4/CD
million/CD
from/IN
$/$
58.8/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
The/DT
jump/NN
reflected/VBD
record/NN
results/NNS
in/IN
Las/NNP
Vegas/NNP
,/,
Nev./NNP
,/,
and/CC
Atlantic/NNP
City/NNP
,/,
N.J./NNP
,/,
as/RB
well/RB
as/IN
a/DT
full/JJ
quarter/NN
's/POS
results/NNS
from/IN
Harrah/NNP
's/POS
Del/NNP
Rio/NNP
in/IN
Laughlin/NNP
,/,
Nev/NNP
./.
Third-quarter/JJ
revenue/NN
rose/VBD
2.7/CD
%/NN
to/TO
$/$
433.5/CD
million/CD
from/IN
$/$
422.1/CD
million/CD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
earnings/NNS
fell/VBD
2.9/CD
%/NN
to/TO
$/$
99.1/CD
million/CD
,/,
or/CC
$/$
3.86/CD
a/DT
share/NN
,/,
from/IN
$/$
102.1/CD
million/CD
,/,
or/CC
$/$
4.10/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Revenue/NN
dropped/VBD
1.6/CD
%/NN
to/TO
$/$
1.21/CD
billion/CD
from/IN
$/$
1.23/CD
billion/CD
./.
The/DT
tender/NN
offer/NN
and/CC
consent/NN
solicitation/NN
will/MD
be/VB
made/VBN
to/TO
debtholders/NNS
in/IN
December/NNP
./.
In/IN
effect/NN
,/,
Holiday/NNP
is/VBZ
asking/VBG
holders/NNS
for/IN
permission/NN
for/IN
Bass/NNP
to/TO
buy/VB
their/PRP$
debt/NN
./.
Holiday/NNP
said/VBD
Salomon/NNP
Brothers/NNP
Inc./NNP
has/VBZ
been/VBN
retained/VBN
to/TO
act/VB
as/IN
the/DT
dealer-manager/NN
and/CC
financial/JJ
adviser/NN
in/IN
connection/NN
with/IN
the/DT
offer/NN
and/CC
solicitation/NN
./.
The/DT
debt/NN
issues/NNS
involved/VBN
and/CC
the/DT
proposed/VBN
consent/NN
fees/NNS
and/CC
cash/NN
tender/NN
offer/NN
prices/NNS
$/$
1,000/CD
of/IN
principal/NN
amount/NN
10/CD
1\/2/CD
%/NN
senior/JJ
notes/NNS
due/JJ
1994/CD
at/IN
101/CD
%/NN
;/:
11/CD
%/NN
subordinated/VBN
debt/NN
due/RB
1999/CD
at/IN
102/CD
%/NN
;/:
9/CD
3\/8/CD
%/NN
notes/NNS
due/RB
1993/CD
at/IN
100/CD
%/NN
;/:
and/CC
8/CD
3\/8/CD
%/NN
notes/NNS
due/RB
1996/CD
at/IN
95.25/CD
%/NN
./.
Holiday/NNP
said/VBD
its/PRP$
15/CD
%/NN
notes/NNS
due/RB
1992/CD
also/RB
will/MD
be/VB
included/VBN
in/IN
the/DT
tender/NN
offer/NN
and/CC
consent/NN
solicitation/NN
at/IN
a/DT
price/NN
to/TO
be/VB
determined/VBN
by/IN
Holiday/NNP
prior/RB
to/TO
the/DT
commencement/NN
of/IN
the/DT
offer/NN
./.
Holiday/NNP
said/VBD
it/PRP
intends/VBZ
to/TO
set/VB
the/DT
price/NN
to/TO
give/VB
noteholders/NNS
approximately/RB
an/DT
8.5/CD
%/NN
yield/NN
to/TO
the/DT
call/NN
date/NN
of/IN
Aug./NNP
15/CD
,/,
The/DT
television/NN
units/NNS
of/IN
Paramount/NNP
Communications/NNP
Inc./NNP
and/CC
MCA/NNP
Inc./NNP
are/VBP
exploring/VBG
the/DT
possibility/NN
of/IN
offering/VBG
prime-time/JJ
programming/NN
to/TO
independent/JJ
stations/NNS
two/CD
nights/NNS
a/DT
week/NN
,/,
industry/NN
executives/NNS
say/VBP
./.
Although/IN
such/JJ
a/DT
venture/NN
would/MD
n't/RB
match/VB
the/DT
``/``
fourth/JJ
network/NN
''/''
created/VBN
by/IN
News/NNP
Corp./NNP
's/POS
Fox/NNP
Broadcasting/NNP
Co./NNP
,/,
MCA/NNP
and/CC
Paramount/NNP
may/MD
have/VB
similar/JJ
ambitions/NNS
./.
Fox/NNP
,/,
which/WDT
also/RB
owns/VBZ
six/CD
TV/NN
stations/NNS
,/,
provides/VBZ
programs/NNS
three/CD
nights/NNS
a/DT
week/NN
to/TO
those/DT
and/CC
other/JJ
affiliates/NNS
./.
Paramount/NNP
Domestic/NNP
TV/NNP
and/CC
MCA/NNP
TV/NNP
formed/VBD
a/DT
joint/JJ
venture/NN
last/JJ
month/NN
,/,
named/VBN
Premier/NNP
Advertiser/NNP
Sales/NNP
,/,
to/TO
sell/VB
advertising/NN
in/IN
programs/NNS
syndicated/VBN
by/IN
both/DT
companies/NNS
,/,
such/JJ
as/IN
``/``
Star/NNP
Trek/NNP
:/:
the/DT
Next/JJ
Generation/NNP
,/,
''/''
``/``
Charles/NNP
in/IN
Charge/NNP
''/''
and/CC
``/``
Friday/NNP
the/DT
13th/NNP
:/:
the/DT
Series/NNP
./.
''/''
A/DT
spokeswoman/NN
for/IN
Paramount/NNP
said/VBD
the/DT
company/NN
does/VBZ
n't/RB
comment/VB
on/IN
speculation/NN
./.
Calls/NNS
to/TO
Shelly/NNP
Schwab/NNP
,/,
president/NN
of/IN
MCA/NNP
TV/NNP
,/,
were/VBD
n't/RB
returned/VBN
./.
The/DT
two/CD
companies/NNS
,/,
like/IN
Fox/NNP
,/,
already/RB
have/VBP
their/PRP$
own/JJ
TV/NN
stations/NNS
./.
MCA/NNP
owns/VBZ
WWOR/NNP
in/IN
New/NNP
York/NNP
and/CC
Paramount/NNP
last/JJ
month/NN
agreed/VBD
to/TO
purchase/VB
a/DT
79/CD
%/NN
stake/NN
in/IN
the/DT
TVX/NNP
Broadcast/NNP
Group/NNP
from/IN
Salomon/NNP
Inc./NNP
in/IN
a/DT
deal/NN
valued/VBN
at/IN
$/$
140/CD
million/CD
./.
TVX/NNP
owns/VBZ
five/CD
stations/NNS
,/,
including/VBG
WTXF/NNP
,/,
a/DT
Fox/NNP
affiliate/NN
,/,
in/IN
Philadelphia/NNP
./.
One/CD
broadcasting/NN
executive/NN
familiar/JJ
with/IN
the/DT
project/NN
said/VBD
the/DT
co-venture/NN
would/MD
target/VB
stations/NNS
affiliated/VBN
with/IN
Fox/NNP
because/IN
Fox/NNP
has/VBZ
the/DT
desirable/JJ
independent/JJ
stations/NNS
in/IN
most/JJS
of/IN
the/DT
key/JJ
cities/NNS
./.
Currently/NNP
,/,
Fox/NNP
supplies/VBZ
programs/NNS
on/IN
Saturdays/NNP
,/,
Sundays/NNP
and/CC
Mondays/NNP
,/,
although/IN
the/DT
company/NN
plans/VBZ
to/TO
expand/VB
to/TO
other/JJ
weeknights/NNS
./.
Jamie/NNP
Kellner/NNP
,/,
president/NN
of/IN
Fox/NNP
Broadcasting/NNP
,/,
said/VBD
,/,
``/``
We/PRP
believe/VBP
the/DT
partnership/NN
of/IN
Fox/NNP
,/,
its/PRP$
affiliates/NNS
and/CC
advertisers/NNS
is/VBZ
succeeding/VBG
and/CC
will/MD
continue/VB
to/TO
grow/VB
./.
''/''
Another/DT
Fox/NNP
official/NN
,/,
who/WP
declined/VBD
to/TO
be/VB
identified/VBN
,/,
said/VBD
Fox/NNP
was/VBD
n't/RB
pleased/VBN
by/IN
the/DT
possible/JJ
Paramount-MCA/NNP
venture/NN
into/IN
prime-time/JJ
programming/NN
./.
``/``
To/TO
make/VB
the/DT
venture/NN
work/NN
,/,
they/PRP
would/MD
need/VB
Fox/NNP
affiliates/NNS
,/,
''/''
he/PRP
said/VBD
./.
``/``
We/PRP
spent/VBD
a/DT
lot/NN
of/IN
time/NN
and/CC
money/NN
in/IN
building/VBG
our/PRP$
group/NN
of/IN
stations/NNS
,/,
''/''
he/PRP
said/VBD
,/,
adding/VBG
that/IN
Fox/NNP
does/VBZ
n't/RB
``/``
appreciate/VB
''/''
another/DT
company/NN
attempting/VBG
to/TO
usurp/VB
its/PRP$
station/NN
lineup/NN
./.
Fox/NNP
said/VBD
it/PRP
plans/VBZ
to/TO
offer/VB
its/PRP$
stations/NNS
movies/NNS
,/,
theatrical/JJ
and/CC
made-for-TV/JJ
ventures/NNS
,/,
probably/RB
on/IN
Wednesdays/NNS
,/,
sometime/RB
next/JJ
year/NN
./.
It/PRP
is/VBZ
also/RB
planning/VBG
another/DT
night/NN
of/IN
original/JJ
series/NN
./.
Paramount/NNP
and/CC
MCA/NNP
,/,
according/VBG
to/TO
the/DT
broadcasting/NN
executive/NN
,/,
plan/VBP
to/TO
offer/VB
theatrical/JJ
movies/NNS
produced/VBN
separately/RB
by/IN
Paramount/NNP
and/CC
MCA/NNP
for/IN
Wednesdays/NNS
and/CC
perhaps/RB
a/DT
block/NN
of/IN
original/JJ
shows/NNS
Fridays/NNS
./.
The/DT
executive/NN
said/VBD
Paramount/NNP
and/CC
MCA/NNP
have/VBP
also/RB
held/VBN
discussions/NNS
with/IN
Chris-Craft/NNP
Industries/NNP
'/POS
broadcasting/NN
unit/NN
,/,
which/WDT
owns/VBZ
five/CD
independent/JJ
stations/NNS
in/IN
cities/NNS
such/JJ
as/IN
Los/NNP
Angeles/NNP
,/,
San/NNP
Francisco/NNP
and/CC
Portland/NNP
,/,
Ore/NNP
./.
A/DT
Chris-Craft/NNP
station/NN
manager/NN
said/VBD
there/EX
have/VBP
been/VBN
no/RB
formal/JJ
talks/NNS
./.
``/``
I/PRP
think/VBP
it/PRP
's/VBZ
to/TO
Fox/NNP
's/POS
advantage/NN
to/TO
be/VB
associated/VBN
with/IN
the/DT
Paramount-MCA/JJ
venture/NN
,/,
''/''
said/VBD
Michael/NNP
Conway/NNP
,/,
station/NN
manager/NN
of/IN
WTXF/NNP
,/,
the/DT
TVX/NNP
station/NN
that/WDT
is/VBZ
a/DT
Fox/NNP
affiliate/NN
./.
Mr./NNP
Conway/NNP
said/VBD
the/DT
Fox/NNP
shows/NNS
appearing/VBG
on/IN
nights/NNS
when/WRB
Paramount-MCA/JJ
shows/NNS
would/MD
n't/RB
be/VB
offered/VBN
could/MD
be/VB
promoted/VBN
on/IN
the/DT
programs/NNS
produced/VBN
by/IN
Paramount-MCA/NNP
./.
Michael/NNP
Fisher/NNP
,/,
general/JJ
manager/NN
of/IN
KTXL/NNP
,/,
a/DT
Fox/NNP
affiliate/NN
in/IN
Sacramento/NNP
,/,
Calif./NNP
,/,
said/VBD
,/,
``/``
The/DT
real/JJ
question/NN
is/VBZ
whether/IN
the/DT
Paramount-MCA/JJ
offering/NN
is/VBZ
practical/JJ
./.
It/PRP
is/VBZ
n't/RB
.../:
./.
Why/WRB
would/MD
I/PRP
consider/VB
giving/VBG
up/RP
Fox/NNP
,/,
a/DT
proven/VBN
commodity/NN
,/,
''/''
for/IN
an/DT
unknown/JJ
venture/NN
?/.
Fox/NNP
attracts/VBZ
a/DT
young/JJ
audience/NN
with/IN
shows/NNS
such/JJ
as/IN
``/``
Married/NNP
.../:
With/IN
Children/NNP
,/,
''/''
its/PRP$
most/RBS
successful/JJ
series/NN
./.
Banco/NNP
Popular/NNP
de/IN
Puerto/NNP
Rico/NNP
and/CC
BanPonce/NNP
Corp./NNP
--/:
agreed/VBD
to/TO
merge/VB
in/IN
a/DT
transaction/NN
valued/VBN
at/IN
$/$
324/CD
million/CD
./.
Under/IN
the/DT
agreement/NN
,/,
BanPonce/NNP
stockholders/NNS
will/MD
be/VB
able/JJ
to/TO
exchange/VB
each/DT
of/IN
their/PRP$
shares/NNS
for/IN
either/CC
shares/NNS
in/IN
the/DT
new/JJ
entity/NN
or/CC
cash/NN
./.
In/IN
each/DT
case/NN
,/,
the/DT
exchange/NN
is/VBZ
valued/VBN
at/IN
$/$
56.25/CD
a/DT
share/NN
./.
The/DT
two/CD
companies/NNS
,/,
both/DT
based/VBN
in/IN
San/NNP
Juan/NNP
,/,
will/MD
form/VB
a/DT
bank/NN
holding/VBG
company/NN
with/IN
assets/NNS
of/IN
just/RB
over/IN
$/$
9/CD
billion/CD
./.
The/DT
holding/VBG
company/NN
will/MD
be/VB
called/VBN
BanPonce/NNP
Corp/NNP
./.
The/DT
primary/JJ
subsidiary/NN
will/MD
be/VB
the/DT
combined/VBN
banking/NN
operations/NNS
of/IN
the/DT
two/CD
companies/NNS
and/CC
will/MD
be/VB
known/VBN
as/IN
Banco/NNP
Popular/NNP
de/IN
Puerto/NNP
Rico/NNP
./.
Rafael/NNP
Carrion/NNP
Jr./NNP
,/,
chairman/NN
of/IN
Banco/NNP
Popular/NNP
,/,
will/MD
be/VB
the/DT
chairman/NN
of/IN
the/DT
holding/VBG
company/NN
./.
Alberto/NNP
M./NNP
Paracchini/NNP
,/,
currently/RB
chairman/NN
of/IN
BanPonce/NNP
,/,
will/MD
serve/VB
as/IN
president/NN
of/IN
the/DT
bank/NN
holding/VBG
company/NN
and/CC
chairman/NN
of/IN
the/DT
subsidiary/NN
./.
Banco/NNP
Popular/NNP
originally/RB
proposed/VBD
the/DT
merger/NN
in/IN
July/NNP
,/,
in/IN
a/DT
cash/NN
and/CC
stock/NN
transaction/NN
valued/VBN
at/IN
$/$
50/CD
a/DT
share/NN
,/,
or/CC
about/RB
$/$
293/CD
million/CD
./.
BanPonce/NNP
reacted/VBD
cooly/RB
at/IN
first/JJ
,/,
but/CC
appeared/VBD
to/TO
be/VB
won/VBN
over/RP
,/,
analysts/NNS
said/VBD
,/,
by/IN
Banco/NNP
Popular/NNP
's/POS
assurances/NNS
that/IN
it/PRP
wanted/VBD
only/RB
a/DT
friendly/JJ
transaction/NN
./.
``/``
Banco/NNP
Popular/NNP
just/RB
kept/VBD
waiting/VBG
,/,
''/''
said/VBD
Edward/NNP
Thompson/NNP
,/,
a/DT
vice/NN
president/NN
and/CC
analyst/NN
at/IN
Thomson/NNP
BankWatch/NNP
Inc./NNP
in/IN
New/NNP
York/NNP
./.
``/``
They/PRP
got/VBD
a/DT
transaction/NN
that/WDT
's/VBZ
good/JJ
for/IN
both/DT
companies/NNS
./.
''/''
The/DT
two/CD
banks/NNS
appear/VBP
to/TO
be/VB
a/DT
good/JJ
fit/NN
./.
BanPonce/NNP
caters/VBZ
to/TO
a/DT
more/RBR
affluent/JJ
customer/NN
,/,
while/IN
Banco/NNP
Popular/NNP
has/VBZ
always/RB
had/VBD
a/DT
large/JJ
presence/NN
among/IN
middle-income/JJ
and/CC
lower-income/JJ
markets/NNS
./.
The/DT
merger/NN
should/MD
also/RB
allow/VB
the/DT
companies/NNS
to/TO
reduce/VB
costs/NNS
by/IN
combining/VBG
operations/NNS
in/IN
many/JJ
locations/NNS
in/IN
Puerto/NNP
Rico/NNP
./.
``/``
They/PRP
're/VBP
often/RB
right/JJ
across/IN
the/DT
street/NN
from/IN
one/CD
another/DT
,/,
''/''
Mr./NNP
Thompson/NNP
said/VBD
./.
Richard/NNP
Carrion/NNP
,/,
who/WP
is/VBZ
currently/RB
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
Banco/NNP
Popular/NNP
,/,
said/VBD
the/DT
merger/NN
will/MD
result/VB
in/IN
a/DT
``/``
larger/JJR
and/CC
stronger/JJR
locally/RB
based/VBN
bank/NN
./.
''/''
Mr./NNP
Carrion/NNP
,/,
who/WP
will/MD
now/RB
serve/VB
as/IN
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
the/DT
subsidiary/NN
bank/NN
,/,
added/VBD
:/:
``/``
We/PRP
'll/MD
be/VB
able/JJ
to/TO
better/RBR
compete/VB
with/IN
large/JJ
foreign/JJ
banks/NNS
./.
It/PRP
makes/VBZ
sense/NN
from/IN
a/DT
strategic/JJ
standpoint/NN
./.
''/''
The/DT
newly/RB
merged/VBN
company/NN
will/MD
have/VB
165/CD
branches/NNS
in/IN
Puerto/NNP
Rico/NNP
and/CC
27/CD
branches/NNS
outside/JJ
of/IN
the/DT
island/NN
./.
The/DT
banks/NNS
said/VBD
they/PRP
do/VBP
n't/RB
expect/VB
the/DT
merger/NN
to/TO
face/VB
any/DT
regulatory/JJ
hurdles/NNS
./.
Mr./NNP
Carrion/NNP
said/VBD
the/DT
merger/NN
should/MD
be/VB
completed/VBN
in/IN
six/CD
to/TO
nine/CD
months/NNS
./.
Hit/VBN
by/IN
higher/JJR
costs/NNS
and/CC
lower/JJR
sales/NNS
,/,
Caterpillar/NNP
Inc./NNP
said/VBD
third-quarter/JJ
earnings/NNS
tumbled/VBD
43/CD
%/NN
and/CC
full-year/JJ
earnings/NNS
will/MD
trail/VB
last/JJ
year/NN
's/POS
results/NNS
./.
The/DT
construction/NN
equipment/NN
maker/NN
said/VBD
third-quarter/JJ
profit/NN
fell/VBD
to/TO
$/$
108/CD
million/CD
,/,
or/CC
$/$
1.07/CD
a/DT
share/NN
,/,
from/IN
$/$
190/CD
million/CD
,/,
or/CC
$/$
1.87/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
dropped/VBD
6/CD
%/NN
to/TO
$/$
2.58/CD
billion/CD
from/IN
$/$
2.74/CD
billion/CD
,/,
reflecting/VBG
eight/CD
fewer/JJR
business/NN
days/NNS
in/IN
the/DT
latest/JJS
quarter/NN
./.
The/DT
company/NN
,/,
which/WDT
is/VBZ
in/IN
a/DT
costly/JJ
modernization/NN
program/NN
,/,
said/VBD
earnings/NNS
were/VBD
hurt/VBN
by/IN
higher/JJR
start-up/NN
and/CC
new/JJ
program/NN
costs/NNS
,/,
increased/VBN
costs/NNS
of/IN
materials/NNS
,/,
higher/JJR
wages/NNS
and/CC
an/DT
$/$
11/CD
million/CD
provision/NN
for/IN
bad/JJ
debts/NNS
in/IN
Latin/NNP
America/NNP
./.
In/IN
announcing/VBG
a/DT
1989/CD
capital/NN
spending/NN
plan/NN
of/IN
$/$
950/CD
million/CD
early/RB
this/DT
year/NN
,/,
Caterpillar/NNP
said/VBD
full-year/JJ
earnings/NNS
would/MD
be/VB
flat/JJ
compared/VBN
with/IN
last/JJ
year/NN
's/POS
$/$
616/CD
million/CD
,/,
or/CC
$/$
6.07/CD
a/DT
share/NN
./.
But/CC
yesterday/NN
,/,
the/DT
company/NN
said/VBD
this/DT
year/NN
's/POS
profit/NN
will/MD
be/VB
lower/JJR
./.
It/PRP
did/VBD
n't/RB
say/VB
by/IN
how/WRB
much/JJ
./.
Suffering/VBG
from/IN
a/DT
downturn/NN
in/IN
heavy/JJ
truck/NN
production/NN
that/WDT
cut/VBD
orders/NNS
for/IN
its/PRP$
engines/NNS
,/,
Caterpillar/NNP
also/RB
said/VBD
it/PRP
will/MD
indefinitely/RB
lay/VB
off/RP
about/RB
325/CD
workers/NNS
in/IN
the/DT
Peoria/NNP
area/NN
and/CC
temporarily/RB
shut/VB
its/PRP$
plant/NN
in/IN
York/NNP
,/,
Pa./NNP
,/,
for/IN
two/CD
weeks/NNS
in/IN
both/DT
November/NNP
and/CC
December/NNP
./.
For/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
the/DT
year/NN
,/,
Caterpillar/NNP
said/VBD
earnings/NNS
fell/VBD
14/CD
%/NN
to/TO
$/$
390/CD
million/CD
,/,
or/CC
$/$
3.85/CD
a/DT
share/NN
,/,
from/IN
$/$
453/CD
million/CD
,/,
or/CC
$/$
4.46/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
rose/VBD
to/TO
$/$
8.19/CD
billion/CD
from/IN
$/$
7.65/CD
billion/CD
./.
Millicom/NNP
Inc./NNP
said/VBD
it/PRP
is/VBZ
one/CD
of/IN
two/CD
companies/NNS
to/TO
receive/VB
a/DT
license/NN
to/TO
introduce/VB
and/CC
operate/VB
a/DT
cellular/JJ
mobile/JJ
telephone/NN
system/NN
in/IN
Pakistan/NNP
./.
The/DT
market/NN
during/IN
the/DT
start-up/NN
is/VBZ
estimated/VBN
at/IN
25,000/CD
subscribers/NNS
./.
A/DT
spokeswoman/NN
for/IN
Millicom/NNP
,/,
a/DT
telecommunications/NNS
company/NN
,/,
said/VBD
she/PRP
did/VBD
n't/RB
know/VB
the/DT
value/NN
of/IN
the/DT
contract/NN
./.
Cable/NNP
&/CC
Wireless/NNP
PLC/NNP
of/IN
Britain/NNP
won/VBD
the/DT
other/JJ
license/NN
./.
Millicom/NNP
said/VBD
it/PRP
would/MD
build/VB
and/CC
operate/VB
the/DT
system/NN
in/IN
Pakistan/NNP
with/IN
Comvik/NNP
International/NNP
AB/NNP
,/,
part/NN
of/IN
the/DT
Kinnevik/NNP
group/NN
of/IN
Sweden/NNP
,/,
and/CC
Arfeen/NNP
International/NNP
,/,
Pakistan/NNP
./.
B.A.T/NNP
Industries/NNP
PLC/NNP
won/VBD
overwhelming/JJ
shareholder/NN
approval/NN
for/IN
a/DT
defensive/JJ
restructuring/NN
to/TO
fend/VB
off/RP
a/DT
#/#
13.35/CD
billion/CD
$/$
21.23/CD
billion/CD
takeover/NN
bid/NN
from/IN
Sir/NNP
James/NNP
Goldsmith/NNP
./.
At/IN
a/DT
shareholders/NNS
'/POS
meeting/NN
in/IN
London/NNP
,/,
the/DT
tobacco/NN
,/,
financial-services/NNS
and/CC
retailing/NN
giant/NN
said/VBD
it/PRP
received/VBD
99.9/CD
%/NN
approval/NN
from/IN
voting/VBG
holders/NNS
for/IN
plans/NNS
to/TO
spin/VB
off/RP
about/RB
$/$
6/CD
billion/CD
in/IN
assets/NNS
./.
B.A.T/NNP
aims/VBZ
to/TO
sell/VB
such/JJ
U.S./NNP
retailing/NN
units/NNS
as/IN
Marshall/NNP
Field/NNP
and/CC
Saks/NNP
Fifth/NNP
Avenue/NNP
and/CC
float/VB
its/PRP$
big/JJ
paper/NN
and/CC
British/NNP
retailing/NN
businesses/NNS
via/IN
share/NN
issues/NNS
to/TO
existing/VBG
holders/NNS
./.
Proceeds/NNS
will/MD
help/VB
pay/VB
for/IN
a/DT
planned/VBN
buy-back/NN
of/IN
10/CD
%/NN
,/,
or/CC
about/RB
153/CD
million/CD
,/,
of/IN
its/PRP$
shares/NNS
and/CC
a/DT
50/CD
%/NN
dividend/NN
increase/NN
./.
B.A.T/NNP
yesterday/NN
started/VBD
its/PRP$
share/NN
buy-back/NN
./.
The/DT
company/NN
said/VBD
it/PRP
acquired/VBD
2.5/CD
million/CD
shares/NNS
for/IN
785/CD
pence/NN
$/$
12.48/CD
each/DT
,/,
or/CC
a/DT
total/NN
of/IN
#/#
19.6/CD
million/CD
$/$
31.2/CD
million/CD
its/PRP$
broker/NN
,/,
Barclays/NNP
de/IN
Zoete/NNP
Wedd/NNP
./.
The/DT
share/NN
buy-back/JJ
plan/NN
is/VBZ
likely/JJ
to/TO
underpin/VB
B.A.T/NNP
's/POS
share/NN
price/NN
./.
B.A.T/NNP
said/VBD
it/PRP
may/MD
make/VB
more/JJR
equity/NN
purchases/NNS
until/IN
the/DT
close/NN
of/IN
business/NN
today/NN
,/,
depending/VBG
on/IN
market/NN
conditions/NNS
,/,
but/CC
will/MD
cease/VB
further/JJ
purchases/NNS
until/IN
Nov./NNP
22/CD
,/,
when/WRB
it/PRP
releases/VBZ
third-quarter/JJ
results/NNS
./.
B.A.T/NNP
shares/NNS
rose/VBD
29/CD
pence/NN
to/TO
783/CD
pence/NN
on/IN
London/NNP
's/POS
stock/NN
exchange/NN
yesterday/NN
./.
Shareholder/NN
approval/NN
sets/VBZ
the/DT
stage/NN
for/IN
a/DT
lengthy/JJ
process/NN
of/IN
restructuring/NN
that/DT
might/MD
not/RB
be/VB
completed/VBN
until/IN
next/JJ
year/NN
's/POS
second/JJ
half/NN
./.
Before/IN
the/DT
recent/JJ
tumult/NN
in/IN
global/JJ
financial/JJ
markets/NNS
,/,
B.A.T/NNP
officials/NNS
,/,
holders/NNS
and/CC
analysts/NNS
had/VBD
expected/VBN
a/DT
substantial/JJ
part/NN
of/IN
the/DT
restructuring/NN
to/TO
be/VB
complete/JJ
by/IN
the/DT
end/NN
of/IN
the/DT
first/JJ
half/NN
./.
``/``
We/PRP
are/VBP
not/RB
in/IN
any/DT
hurry/NN
to/TO
sell/VB
''/''
Saks/NNP
,/,
Marshall/NNP
Field/NNP
or/CC
B.A.T/NNP
's/POS
other/JJ
U.S./NNP
retail/NN
properties/NNS
,/,
said/VBD
Chairman/NNP
Patrick/NNP
Sheehy/NNP
./.
``/``
This/DT
is/VBZ
n't/RB
a/DT
distress/NN
sale/NN
./.
We/PRP
are/VBP
determined/VBN
to/TO
get/VB
good/JJ
prices/NNS
./.
''/''
Company/NN
officials/NNS
say/VBP
the/DT
flotations/NNS
of/IN
the/DT
paper/NN
and/CC
British/JJ
retailing/NN
businesses/NNS
are/VBP
likely/JJ
only/RB
after/IN
the/DT
disposals/NNS
of/IN
the/DT
U.S./NNP
retailing/NN
assets/NNS
./.
Meanwhile/RB
,/,
Sir/NNP
James/NNP
still/RB
is/VBZ
pursuing/VBG
efforts/NNS
to/TO
gain/VB
U.S./NNP
insurance/NN
regulators/NNS
'/POS
approval/NN
for/IN
a/DT
change/NN
in/IN
control/NN
of/IN
B.A.T/NNP
's/POS
Farmers/NNP
Group/NNP
Inc./NNP
unit/NN
./.
The/DT
Anglo-French/JJ
financier/NN
has/VBZ
indicated/VBN
he/PRP
intends/VBZ
to/TO
bid/VB
again/RB
for/IN
B.A.T/NNP
if/IN
he/PRP
receives/VBZ
approval/NN
./.
Hasbro/NNP
Inc./NNP
,/,
the/DT
nation/NN
's/POS
largest/JJS
toy/NN
maker/NN
,/,
reported/VBD
third-quarter/JJ
earnings/NNS
increased/VBD
73/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
on/IN
a/DT
9.4/CD
%/NN
sales/NNS
gain/NN
,/,
reflecting/VBG
improved/VBN
margins/NNS
./.
Hasbro/NNP
said/VBD
it/PRP
had/VBD
net/JJ
income/NN
of/IN
$/$
31.3/CD
million/CD
,/,
or/CC
53/CD
cents/NNS
a/DT
share/NN
,/,
up/RP
from/IN
$/$
18.1/CD
million/CD
,/,
or/CC
31/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
,/,
when/WRB
it/PRP
took/VBD
a/DT
pretax/JJ
charge/NN
of/IN
$/$
10/CD
million/CD
after/IN
dropping/VBG
development/NN
of/IN
an/DT
interactive/JJ
video/NN
entertainment/NN
system/NN
./.
Revenue/NN
rose/VBD
to/TO
$/$
403/CD
million/CD
from/IN
$/$
368.4/CD
million/CD
./.
The/DT
company/NN
cited/VBD
sales/JJ
gains/NNS
at/IN
its/PRP$
Milton/NNP
Bradley/NNP
and/CC
Playskool/NNP
units/NNS
and/CC
in/IN
its/PRP$
international/JJ
business/NN
for/IN
the/DT
increase/NN
in/IN
revenue/NN
./.
Alan/NNP
G./NNP
Hassenfeld/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/NN
,/,
added/VBD
that/DT
Hasbro/NNP
's/POS
new/JJ
line/NN
of/IN
battery-powered/JJ
racing/NN
cars/NNS
,/,
called/VBD
Record/NNP
Breakers/NNP
,/,
and/CC
its/PRP$
acquisition/NN
of/IN
Cabbage/NNP
Patch/NNP
Kids/NNP
,/,
Scrabble/NNP
and/CC
other/JJ
lines/NNS
from/IN
Coleco/NNP
Industries/NNP
Inc./NNP
puts/VBZ
the/DT
company/NN
``/``
in/IN
a/DT
good/JJ
position/NN
as/IN
we/PRP
enter/VBP
the/DT
Christmas/NNP
buying/NN
season/NN
./.
''/''
For/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
the/DT
year/NN
,/,
Hasbro/NNP
's/POS
net/JJ
income/NN
rose/VBD
33/CD
%/NN
to/TO
$/$
68.2/CD
million/CD
,/,
or/CC
$/$
1.15/CD
a/DT
share/NN
,/,
from/IN
$/$
51.3/CD
million/CD
,/,
or/CC
88/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
a/DT
3.1/CD
%/NN
increase/NN
in/IN
revenue/NN
to/TO
$/$
992.7/CD
million/CD
from/IN
$/$
963/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
Reebok/NNP
International/NNP
Ltd./NNP
posted/VBD
a/DT
35/CD
%/NN
increase/NN
in/IN
third-quarter/JJ
net/JJ
income/NN
despite/IN
a/DT
slight/JJ
decline/NN
in/IN
sales/NNS
./.
The/DT
athletic/JJ
footwear/NN
maker/NN
said/VBD
net/JJ
rose/VBD
to/TO
$/$
49.9/CD
million/CD
,/,
or/CC
44/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
37.1/CD
million/CD
,/,
or/CC
32/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
declined/VBD
3/CD
%/NN
to/TO
$/$
524.5/CD
million/CD
from/IN
$/$
539.4/CD
million/CD
./.
Paul/NNP
Fireman/NNP
,/,
Reebok/NNP
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
said/VBD
,/,
``/``
Our/PRP$
gains/NNS
in/IN
earnings/NNS
provide/VBP
further/JJ
evidence/NN
that/IN
the/DT
controls/NNS
we/PRP
have/VBP
put/VBN
in/IN
place/NN
and/CC
our/PRP$
sales/NNS
mix/NN
are/VBP
continuing/VBG
to/TO
improve/VB
the/DT
company/NN
's/POS
overall/JJ
profit/NN
performance/NN
./.
''/''
The/DT
company/NN
said/VBD
it/PRP
expects/VBZ
sales/NNS
to/TO
improve/VB
due/RB
to/TO
a/DT
number/NN
of/IN
new/JJ
products/NNS
,/,
including/VBG
a/DT
``/``
pump/NN
''/''
basketball/NN
shoe/NN
that/WDT
can/MD
be/VB
inflated/VBN
to/TO
better/RB
fit/VB
the/DT
foot/NN
./.
In/IN
the/DT
first/JJ
nine/CD
months/NNS
,/,
net/JJ
was/VBD
$/$
140/CD
million/CD
,/,
or/CC
$/$
1.23/CD
a/DT
share/NN
,/,
on/IN
sales/NNS
of/IN
$/$
1.44/CD
billion/CD
./.
Separately/NNP
,/,
Reebok/NNP
completed/VBD
the/DT
acquisition/NN
of/IN
CML/NNP
Group/NNP
Inc./NNP
's/POS
Boston/NNP
Whaler/NNP
unit/NN
,/,
a/DT
builder/NN
of/IN
power/NN
boats/NNS
./.
CML/NNP
,/,
Acton/NNP
,/,
Mass./NNP
,/,
had/VBD
agreed/VBN
to/TO
sell/VB
the/DT
unit/NN
to/TO
Reebok/NNP
for/IN
about/RB
$/$
42/CD
million/CD
./.
The/DT
agreement/NN
also/RB
called/VBD
for/IN
Reebok/NNP
to/TO
receive/VB
warrants/NNS
to/TO
purchase/VB
400,000/CD
shares/NNS
of/IN
CML/NNP
common/JJ
at/IN
$/$
31.25/CD
a/DT
share/NN
,/,
exercisable/JJ
at/IN
any/DT
time/NN
before/IN
July/NNP
1/CD
,/,
An/DT
outside/JJ
spokesman/NN
for/IN
CML/NNP
said/VBD
the/DT
terms/NNS
were/VBD
changed/VBN
to/TO
a/DT
minor/JJ
extent/NN
but/CC
would/MD
n't/RB
disclose/VB
what/WP
those/DT
changes/NNS
were/VBD
./.
Pitney/NNP
Bowes/NNP
Inc./NNP
directors/NNS
authorized/VBD
the/DT
company/NN
to/TO
seek/VB
buyers/NNS
for/IN
its/PRP$
Wheeler/NNP
Group/NNP
Inc./NNP
subsidiary/NN
,/,
a/DT
direct/JJ
mail/NN
marketer/NN
of/IN
office/NN
supplies/NNS
./.
Pitney/NNP
Bowes/NNP
said/VBD
the/DT
decision/NN
was/VBD
based/VBN
on/IN
a/DT
long-term/JJ
analysis/NN
of/IN
the/DT
compatibility/NN
of/IN
Wheeler/NNP
Group/NNP
's/POS
marketing/NN
business/NN
with/IN
other/JJ
Pitney/NNP
Bowes/NNP
operations/NNS
./.
Pitney/NNP
Bowes/NNP
acquired/VBD
the/DT
core/NN
of/IN
what/WP
evolved/VBD
into/IN
Wheeler/NNP
Group/NNP
in/IN
1979/CD
by/IN
buying/VBG
Dictaphone/NNP
Corp/NNP
./.
A/DT
spokeswoman/NN
would/MD
n't/RB
comment/VB
on/IN
whether/IN
the/DT
company/NN
had/VBD
talked/VBN
with/IN
any/DT
potential/JJ
buyers/NNS
for/IN
the/DT
New/NNP
Hartford/NNP
,/,
Conn./NNP
,/,
unit/NN
,/,
which/WDT
had/VBD
1988/CD
sales/NNS
of/IN
about/RB
$/$
75/CD
million/CD
./.
She/PRP
said/VBD
Wheeler/NNP
Group/NNP
was/VBD
profitable/JJ
but/CC
would/MD
n't/RB
give/VB
figures/NNS
./.
The/DT
spokeswoman/NN
said/VBD
the/DT
company/NN
does/VBZ
n't/RB
have/VB
a/DT
timetable/NN
for/IN
the/DT
sale/NN
,/,
adding/VBG
that/IN
the/DT
board/NN
's/POS
decision/NN
just/RB
starts/VBZ
the/DT
search/NN
for/IN
a/DT
buyer/NN
./.
Separately/NNP
,/,
Pitney/NNP
Bowes/NNP
said/VBD
third-quarter/JJ
net/NN
income/NN
gained/VBN
15/CD
%/NN
to/TO
$/$
62/CD
million/CD
,/,
or/CC
78/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
54/CD
million/CD
,/,
or/CC
68/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
ago/RB
./.
Revenue/NN
grew/VBD
13/CD
%/NN
to/TO
$/$
734.8/CD
million/CD
from/IN
$/$
650.9/CD
million/CD
./.
The/DT
company/NN
said/VBD
the/DT
growth/NN
was/VBD
led/VBN
by/IN
its/PRP$
major/JJ
operations/NNS
,/,
particularly/RB
mailing/NN
,/,
shipping/NN
,/,
dictating/NN
and/CC
facsimile/JJ
businesses/NNS
./.
Steel/NN
jackets/NNS
of/IN
a/DT
type/NN
that/WDT
may/MD
have/VB
prevented/VBN
collapse/NN
of/IN
the/DT
columns/NNS
of/IN
a/DT
1.5-mile/CD
stretch/NN
of/IN
the/DT
Nimitz/NNP
Freeway/NNP
had/VBD
been/VBN
installed/VBN
on/IN
at/IN
least/JJS
a/DT
small/JJ
test/NN
section/NN
of/IN
the/DT
double-decker/JJ
highway/NN
last/JJ
year/NN
by/IN
California/NNP
's/POS
Department/NNP
of/IN
Transportation/NNP
,/,
employees/VBZ
familiar/JJ
with/IN
the/DT
project/NN
say/VBP
./.
The/DT
test/NN
project/NN
--/:
which/WDT
reportedly/RB
survived/VBD
Tuesday/NNP
's/POS
earthquake/NN
--/:
was/VBD
a/DT
prelude/NN
to/TO
a/DT
state/NN
plan/NN
to/TO
retrofit/VB
that/DT
critical/JJ
section/NN
of/IN
the/DT
freeway/NN
with/IN
the/DT
steel/NN
casings/NNS
./.
State/NN
engineers/NNS
have/VBP
made/VBN
a/DT
preliminary/JJ
finding/NN
that/IN
it/PRP
was/VBD
failure/NN
of/IN
the/DT
concrete/JJ
columns/NNS
,/,
wrenched/VBN
and/CC
separated/VBN
from/IN
the/DT
double-decker/JJ
roadbed/NN
,/,
that/WDT
was/VBD
responsible/JJ
for/IN
the/DT
collapse/NN
./.
The/DT
failure/NN
in/IN
Oakland/NNP
of/IN
the/DT
freeway/NN
segment/NN
known/VBN
as/IN
the/DT
Cypress/NNP
structure/NN
was/VBD
the/DT
deadliest/JJS
aspect/NN
of/IN
the/DT
quake/NN
,/,
although/IN
officials/NNS
were/VBD
hopeful/JJ
yesterday/NN
that/IN
the/DT
death/NN
toll/NN
there/RB
might/MD
be/VB
significantly/RB
lower/JJR
than/IN
the/DT
250/CD
initially/RB
feared/VBN
./.
Sorting/VBG
out/RP
the/DT
wreckage/NN
is/VBZ
expected/VBN
to/TO
take/VB
several/JJ
days/NNS
./.
Red/JJ
tractors/NNS
gingerly/RB
picked/VBD
at/IN
the/DT
rubble/NN
while/IN
jackhammers/NNS
tried/VBD
to/TO
break/VB
up/IN
some/DT
of/IN
the/DT
massive/JJ
slabs/NNS
of/IN
concrete/NN
./.
Giant/JJ
yellow/JJ
cranes/NNS
were/VBD
wheeled/VBN
up/RP
alongside/IN
the/DT
collapsed/VBN
segment/NN
,/,
preparing/VBG
to/TO
lift/VB
off/RP
chunks/NNS
of/IN
the/DT
debris/NN
./.
In/IN
Sacramento/NNP
,/,
a/DT
transportation/NN
department/NN
spokesman/NN
said/VBD
he/PRP
could/MD
n't/RB
immediately/RB
confirm/VB
or/CC
deny/VB
existence/NN
of/IN
the/DT
test/NN
work/NN
./.
However/RB
,/,
he/PRP
asserted/VBD
that/IN
the/DT
department/NN
had/VBD
n't/RB
mastered/VBN
the/DT
technology/NN
needed/VBD
to/TO
retrofit/VB
the/DT
entire/JJ
Cypress/NNP
structure/NN
./.
Moreover/RB
,/,
other/JJ
officials/NNS
noted/VBD
,/,
snafus/NNS
in/IN
transportation/NN
funding/NN
that/IN
the/DT
state/NN
has/VBZ
experienced/VBN
over/IN
the/DT
years/NNS
may/MD
have/VB
restricted/VBN
the/DT
availability/NN
of/IN
funds/NNS
for/IN
such/JJ
a/DT
retrofitting/NN
,/,
even/RB
if/IN
it/PRP
were/VBD
technologically/RB
feasible/JJ
./.
Knowledgeable/JJ
employees/NNS
said/VBD
the/DT
retrofitting/NN
,/,
which/WDT
had/VBD
n't/RB
yet/RB
been/VBN
budgeted/VBN
,/,
was/VBD
part/NN
of/IN
a/DT
planned/VBN
,/,
three-stage/JJ
reinforcement/NN
of/IN
the/DT
Cypress/NNP
structure/NN
begun/VBN
by/IN
the/DT
California/NNP
transportation/NN
department/NN
several/JJ
years/NNS
ago/RB
./.
The/DT
Cypress/NNP
reinforcement/NN
project/NN
itself/PRP
was/VBD
part/NN
of/IN
an/DT
annual/JJ
effort/NN
to/TO
shore/NN
up/IN
structures/NNS
believed/VBD
vulnerable/JJ
to/TO
earthquakes/NNS
./.
The/DT
state/NN
began/VBD
such/JJ
work/NN
after/IN
a/DT
1971/CD
tremblor/NN
in/IN
Southern/NNP
California/NNP
,/,
when/WRB
numerous/JJ
bridges/NNS
collapsed/VBD
./.
``/``
We/PRP
had/VBD
just/RB
finished/VBN
phase/NN
two/CD
''/''
of/IN
the/DT
Cypress/NNP
project/NN
that/WDT
involved/VBD
installing/VBG
a/DT
series/NN
of/IN
retaining/VBG
cables/NNS
designed/VBN
to/TO
prevent/VB
sections/NNS
of/IN
the/DT
roadway/NN
from/IN
separating/VBG
as/IN
a/DT
result/NN
of/IN
seismic/JJ
shock/NN
,/,
a/DT
state/NN
DOT/NNP
engineer/NN
said/VBD
./.
After/IN
completing/VBG
installation/NN
of/IN
the/DT
jackets/NNS
on/IN
``/``
one/CD
frame/NN
''/''
of/IN
the/DT
freeway/NN
last/JJ
year/NN
,/,
the/DT
state/NN
DOT/NNP
had/VBD
sent/VBN
the/DT
project/NN
over/IN
to/TO
its/PRP$
Sacramento/NNP
engineers/NNS
to/TO
draw/VB
up/RP
a/DT
final/JJ
design/NN
./.
Knowledgeable/JJ
employees/NNS
said/VBD
the/DT
project/NN
had/VBD
been/VBN
stymied/VBN
somewhat/RB
by/IN
``/``
the/DT
difficulty/NN
of/IN
designing/VBG
''/''
the/DT
jackets/NNS
./.
The/DT
procedure/NN
involves/VBZ
encasing/VBG
the/DT
concrete/JJ
columns/NNS
with/IN
steel/NN
,/,
then/RB
connecting/VBG
them/PRP
more/RBR
securely/RB
to/TO
the/DT
double-decker/JJ
roadbed/NN
./.
The/DT
employees/NNS
also/RB
said/VBD
the/DT
project/NN
may/MD
have/VB
been/VBN
snagged/VBN
by/IN
budgetary/JJ
concerns/NNS
./.
One/CD
preliminary/JJ
estimate/NN
put/VBD
the/DT
retrofitting/NN
cost/NN
at/IN
as/RB
much/JJ
as/IN
$/$
50/CD
million/CD
./.
The/DT
collapse/NN
of/IN
the/DT
span/NN
has/VBZ
provoked/VBN
surprise/NN
and/CC
anger/NN
among/IN
state/NN
officials/NNS
./.
Gov./NNP
George/NNP
Deukmejian/NNP
,/,
who/WP
said/VBD
he/PRP
had/VBD
been/VBN
assured/VBN
by/IN
state/NN
transportation/NN
officials/NNS
that/IN
the/DT
structure/NN
could/MD
withstand/VB
an/DT
even/RB
larger/JJR
quake/NN
,/,
called/VBD
for/IN
an/DT
immediate/JJ
investigation/NN
./.
``/``
I/PRP
want/VBP
to/TO
know/VB
who/WP
made/VBD
the/DT
decision/NN
that/IN
it/PRP
was/VBD
safe/JJ
for/IN
186,000/CD
people/NNS
to/TO
use/VB
every/DT
day/NN
,/,
''/''
said/VBD
Richard/NNP
Katz/NNP
,/,
a/DT
state/NN
legislator/NN
who/WP
is/VBZ
chairman/NN
of/IN
the/DT
California/NNP
Assembly/NNP
's/POS
transportation/NN
committee/NN
./.
He/PRP
said/VBD
he/PRP
would/MD
convene/VB
hearings/NNS
within/IN
two/CD
weeks/NNS
./.
The/DT
Cypress/NNP
structure/NN
opened/VBD
in/IN
June/NNP
1957/CD
,/,
and/CC
as/RB
such/JJ
,/,
like/IN
many/JJ
buildings/NNS
in/IN
the/DT
San/NNP
Francisco/NNP
Bay/NNP
area/NN
,/,
does/VBZ
not/RB
meet/VB
current/JJ
building/NN
codes/NNS
requiring/VBG
considerably/RB
more/JJR
steel/NN
support/NN
./.
The/DT
northern/JJ
piers/NNS
of/IN
the/DT
span/NN
lie/NN
in/IN
estuarian/NN
deposits/NNS
that/WDT
were/VBD
of/IN
a/DT
type/NN
to/TO
have/VB
liquefied/VBN
easily/RB
during/IN
the/DT
1906/CD
quake/NN
./.
Transportation/NN
department/NN
officials/NNS
,/,
however/RB
,/,
said/VBD
they/PRP
were/VBD
as/RB
surprised/VBN
as/IN
anyone/NN
by/IN
the/DT
Cypress/NNP
destruction/NN
./.
They/PRP
said/VBD
previous/JJ
earthquakes/NNS
suggested/VBD
that/IN
multiple-column/JJ
viaducts/NNS
would/MD
stand/VB
up/RP
well/RB
,/,
although/IN
they/PRP
were/VBD
working/VBG
on/IN
ways/NNS
to/TO
bolster/VB
them/PRP
./.
``/``
Unfortunately/RB
,/,
there/EX
is/VBZ
only/RB
one/CD
laboratory/NN
for/IN
developing/VBG
techniques/NNS
to/TO
withstand/VB
earthquakes/NNS
,/,
and/CC
that/DT
is/VBZ
an/DT
earthquake/NN
,/,
''/''
said/VBD
Burch/NNP
Bachtold/NNP
,/,
San/NNP
Francisco/NNP
district/NN
director/NN
for/IN
the/DT
transportation/NN
department/NN
./.
He/PRP
said/VBD
:/:
``/``
We/PRP
know/VBP
of/IN
no/DT
technology/NN
that/WDT
exists/VBZ
anywhere/RB
in/IN
the/DT
world/NN
that/WDT
would/MD
allow/VB
us/PRP
to/TO
''/''
reinforce/VB
the/DT
columns/NNS
./.
Financial/NNP
Corp./NNP
of/IN
Santa/NNP
Barbara/NNP
said/VBD
it/PRP
rescheduled/VBD
to/TO
Nov./VB
29/CD
a/DT
special/JJ
shareholder/NN
meeting/NN
to/TO
vote/VB
on/IN
a/DT
$/$
75/CD
million/CD
stock-for-debt/JJ
exchange/NN
./.
The/DT
meeting/NN
had/VBD
been/VBN
scheduled/VBN
for/IN
Nov./NNP
10/CD
but/CC
the/DT
company/NN
delayed/VBD
the/DT
meeting/NN
to/TO
allow/VB
time/NN
for/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
to/TO
review/VB
the/DT
proposal/NN
./.
As/IN
part/NN
of/IN
a/DT
restructuring/VBG
announced/VBD
earlier/RBR
this/DT
year/NN
,/,
the/DT
company/NN
proposed/VBN
in/IN
August/NNP
to/TO
exchange/VB
168/CD
newly/RB
issued/VBN
common/JJ
shares/NNS
for/IN
each/DT
$/$
1,000/CD
face/NN
value/NN
of/IN
debt/NN
./.
However/RB
,/,
that/DT
figure/NN
could/MD
be/VB
revised/VBN
,/,
Financial/NNP
Corp./NNP
said/VBD
./.
Currently/RB
,/,
the/DT
company/NN
has/VBZ
about/RB
six/CD
million/CD
common/JJ
shares/NNS
outstanding/JJ
./.
If/IN
all/DT
the/DT
debt/NN
was/VBD
converted/VBN
,/,
about/RB
13/CD
million/CD
new/JJ
shares/NNS
would/MD
be/VB
issued/VBN
./.
In/IN
composite/JJ
trading/NN
Wednesday/NNP
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Financial/NNP
Corp./NNP
closed/VBD
at/IN
$/$
1.125/CD
,/,
unchanged/JJ
./.
The/DT
debt/NN
consists/VBZ
of/IN
$/$
50/CD
million/CD
of/IN
13/CD
3\/8/CD
%/NN
subordinated/VBN
notes/NNS
due/JJ
1998/CD
,/,
and/CC
$/$
25/CD
million/CD
of/IN
9/CD
%/NN
convertible/JJ
subordinated/VBN
debentures/NNS
due/JJ
2012/CD
./.
Financial/NNP
Corp./NNP
also/RB
is/VBZ
proposing/VBG
to/TO
exchange/VB
each/DT
of/IN
its/PRP$
130,000/CD
outstanding/JJ
shares/NNS
of/IN
cumulative/JJ
convertible/NN
preferred/VBN
series/NN
A/NNP
stock/NN
for/IN
two/CD
shares/NNS
of/IN
common/NN
./.
After/IN
years/NNS
of/IN
quarreling/VBG
over/IN
Bonn/NNP
's/POS
``/``
Ostpolitik/NNP
''/''
,/,
West/NNP
Germany/NNP
and/CC
the/DT
U.S./NNP
appear/VBP
to/TO
have/VB
shifted/VBN
onto/IN
a/DT
united/VBN
course/NN
in/IN
Eastern/NNP
Europe/NNP
./.
Bonn/NNP
and/CC
Washington/NNP
have/VBP
taken/VBN
a/DT
leading/JJ
role/NN
in/IN
aid/NN
for/IN
the/DT
reformist/NN
countries/NNS
,/,
pledging/VBG
billions/NNS
of/IN
dollars/NNS
in/IN
fresh/JJ
credit/NN
and/CC
forgiving/JJ
old/JJ
debt/NN
while/IN
urging/VBG
other/JJ
industrial/JJ
nations/NNS
to/TO
follow/VB
suit/NN
./.
Both/DT
hope/VBP
to/TO
encourage/VB
pressure/NN
for/IN
change/NN
in/IN
East/NNP
bloc/NN
countries/NNS
still/RB
ruled/VBN
by/IN
Stalinist/JJ
holdouts/NNS
by/IN
arranging/VBG
liberal/JJ
financial/JJ
aid/NN
and/CC
trade/NN
benefits/NNS
for/IN
Poland/NNP
,/,
Hungary/NNP
and/CC
,/,
to/TO
a/DT
lesser/JJR
extent/NN
,/,
the/DT
Soviet/NNP
Union/NNP
./.
West/JJ
German/JJ
officials/NNS
also/RB
have/VBP
the/DT
special/JJ
goal/NN
of/IN
holding/VBG
out/RP
hope/NN
for/IN
East/NNP
Germany/NNP
's/POS
fledgling/NN
reform/NN
movement/NN
./.
``/``
The/DT
change/NN
taking/VBG
place/NN
in/IN
the/DT
Soviet/NNP
Union/NNP
,/,
Poland/NNP
and/CC
Hungary/NNP
has/VBZ
aroused/VBN
new/JJ
hope/NN
in/IN
both/DT
German/JJ
states/NNS
that/IN
reforms/NNS
will/MD
be/VB
undertaken/VBN
in/IN
{/(
East/NNP
Germany/NNP
relations/NNS
between/IN
the/DT
two/CD
German/JJ
states/NNS
,/,
too/RB
,/,
will/MD
get/VB
better/RBR
,/,
''/''
said/VBD
Foreign/NNP
Minister/NNP
Hans-Dietrich/NNP
Genscher/NNP
./.
Addressing/VBG
a/DT
conference/NN
of/IN
the/DT
New/NNP
York-based/JJ
Institute/NNP
for/IN
East-West/NNP
Security/NNP
Studies/NNP
in/IN
Frankfurt/NNP
yesterday/NN
,/,
Mr./NNP
Genscher/NNP
said/VBD
,/,
``/``
History/NN
will/MD
judge/VB
us/PRP
by/IN
whether/IN
we/PRP
have/VBP
taken/VBN
the/DT
opportunities/NNS
that/WDT
emerge/VBP
from/IN
these/DT
reforms/NNS
./.
''/''
The/DT
ultimate/JJ
aim/NN
of/IN
Western/JJ
support/NN
for/IN
East/NNP
bloc/NN
reforms/NNS
,/,
he/PRP
said/VBD
,/,
is/VBZ
to/TO
create/VB
``/``
an/DT
equitable/JJ
and/CC
stable/JJ
peaceful/JJ
order/NN
in/IN
Europe/NNP
from/IN
the/DT
Atlantic/NNP
to/TO
the/DT
Urals/NNS
./.
''/''
Mr./NNP
Genscher/NNP
and/CC
U.S./NNP
Secretary/NNP
of/IN
Commerce/NNP
Robert/NNP
A./NNP
Mosbacher/NNP
,/,
in/IN
separate/JJ
speeches/NNS
at/IN
the/DT
conference/NN
,/,
appealed/VBD
for/IN
more/JJR
Western/JJ
contributions/NNS
to/TO
economic/JJ
reforms/NNS
and/CC
business/NN
development/NN
in/IN
Hungary/NNP
and/CC
Poland/NNP
./.
Bonn/NNP
and/CC
Washington/NNP
are/VBP
leading/JJ
supporters/NNS
of/IN
Poland/NNP
's/POS
request/NN
for/IN
a/DT
$/$
1/CD
billion/CD
stand-by/JJ
credit/NN
from/IN
the/DT
International/NNP
Monetary/NNP
Fund/NNP
./.
``/``
We/PRP
want/VBP
the/DT
bold/JJ
programs/NNS
of/IN
market/NN
development/NN
and/CC
political/JJ
freedom/NN
in/IN
Hungary/NNP
and/CC
in/IN
Poland/NNP
to/TO
succeed/VB
./.
We/PRP
are/VBP
prepared/VBN
to/TO
support/VB
those/DT
changes/NNS
,/,
''/''
said/VBD
Mr./NNP
Mosbacher/NNP
./.
U.S./NNP
curbs/NNS
on/IN
the/DT
exports/NNS
of/IN
sensitive/JJ
technology/NN
to/TO
East/NNP
bloc/NN
countries/NNS
will/MD
remain/VB
in/IN
place/NN
,/,
however/RB
./.
Meanwhile/RB
,/,
the/DT
U.S./NNP
House/NNP
of/IN
Representatives/NNP
yesterday/NN
approved/VBD
an/DT
$/$
837.5/CD
million/CD
aid/NN
package/NN
for/IN
Poland/NNP
and/CC
Hungary/NNP
that/IN
more/RBR
than/IN
doubles/VBZ
the/DT
amount/NN
President/NNP
Bush/NNP
had/VBD
requested/VBN
./.
The/DT
package/NN
was/VBD
brought/VBN
to/TO
the/DT
House/NNP
just/RB
15/CD
days/NNS
after/IN
it/PRP
was/VBD
introduced/VBN
,/,
indicating/VBG
Congress/NNP
's/POS
eagerness/NN
to/TO
reward/VB
Poland/NNP
and/CC
Hungary/NNP
for/IN
their/PRP$
moves/NNS
toward/IN
democracy/NN
and/CC
freemarket/JJ
economic/JJ
reforms/NNS
./.
The/DT
legislation/NN
,/,
approved/VBN
345-47/CD
and/CC
sent/VBN
to/TO
the/DT
Senate/NNP
,/,
establishes/VBZ
two/CD
enterprise/NN
funds/NNS
,/,
to/TO
be/VB
governed/VBN
by/IN
independent/JJ
nonprofit/JJ
boards/NNS
,/,
which/WDT
will/MD
make/VB
loans/NNS
and/CC
investments/NNS
in/IN
new/JJ
business/NN
ventures/NNS
in/IN
Hungary/NNP
and/CC
Poland/NNP
./.
The/DT
Polish/JJ
fund/NN
would/MD
be/VB
seeded/VBN
with/IN
$/$
160/CD
million/CD
,/,
the/DT
Hungarian/JJ
fund/NN
with/IN
$/$
40/CD
million/CD
./.
In/IN
addition/NN
,/,
a/DT
group/NN
of/IN
24/CD
industrialized/VBN
countries/NNS
,/,
including/VBG
the/DT
U.S./NNP
and/CC
Japan/NNP
and/CC
coordinated/VBN
by/IN
the/DT
European/NNP
Community/NNP
Commission/NNP
,/,
has/VBZ
promised/VBN
Poland/NNP
and/CC
Hungary/NNP
trade/NN
advice/NN
and/CC
a/DT
line/NN
of/IN
credit/NN
equivalent/JJ
to/TO
$/$
1.11/CD
billion/CD
through/IN
the/DT
European/NNP
Investment/NNP
Bank/NNP
,/,
while/IN
the/DT
EC/NNP
plans/VBZ
$/$
222/CD
million/CD
in/IN
direct/JJ
aid/NN
./.
When/WRB
Chancellor/NNP
Helmut/NNP
Kohl/NNP
travels/VBZ
to/TO
Poland/NNP
Nov./NNP
9/CD
,/,
he/PRP
is/VBZ
expected/VBN
to/TO
take/VB
with/IN
him/PRP
a/DT
promise/NN
of/IN
three/CD
billion/CD
West/NNP
German/NNP
$/$
1.6/CD
billion/CD
new/JJ
credit/NN
guarantees/NNS
for/IN
industrial/JJ
projects/NNS
./.
Last/JJ
week/NN
,/,
Bonn/NNP
agreed/VBD
to/TO
reschedule/VB
2.5/CD
billion/CD
marks/NNS
in/IN
Polish/JJ
debt/NN
that/WDT
came/VBD
due/JJ
last/JJ
year/NN
./.
In/IN
addition/NN
,/,
a/DT
one/CD
billion/CD
mark/NN
credit/NN
dating/VBG
from/IN
1974/CD
is/VBZ
to/TO
be/VB
written/VBN
off/RP
./.
Poland/NNP
's/POS
plan/NN
to/TO
switch/VB
to/TO
a/DT
free-market/JJ
economy/NN
by/IN
1991/CD
is/VBZ
hampered/VBN
by/IN
a/DT
foreign/JJ
debt/NN
load/NN
of/IN
$/$
39.2/CD
billion/CD
./.
West/NNP
Germany/NNP
also/RB
has/VBZ
increased/VBN
its/PRP$
credit/NN
guarantees/VBZ
to/TO
Hungary/JJ
by/IN
500/CD
million/CD
marks/NNS
to/TO
1.5/CD
billion/CD
marks/NNS
as/IN
the/DT
emerging/VBG
democratic/JJ
state/NN
rushes/VBZ
through/IN
its/PRP$
own/JJ
economic/JJ
reforms/NNS
,/,
including/VBG
a/DT
broad/JJ
privatization/NN
of/IN
state-owned/JJ
industry/NN
and/CC
tax/NN
incentives/NNS
for/IN
industrial/JJ
investment/NN
./.
An/DT
additional/JJ
500/CD
million/CD
marks/NNS
in/IN
credit-backing/NN
was/VBD
promised/VBN
by/IN
the/DT
West/JJ
German/JJ
state/NN
governments/NNS
of/IN
Bavaria/NNP
and/CC
Baden-Wuerttemberg/NNP
./.
Deutsche/NNP
Bank/NNP
AG/NNP
,/,
which/WDT
last/JJ
year/NN
arranged/VBD
a/DT
three/CD
billion/CD
mark/NN
credit/NN
for/IN
the/DT
Soviet/NNP
Union/NNP
,/,
is/VBZ
now/RB
moving/VBG
to/TO
become/VB
the/DT
first/JJ
West/JJ
German/JJ
bank/NN
to/TO
set/VB
up/IN
independent/JJ
business/NN
offices/NNS
in/IN
Hungary/NNP
and/CC
Poland/NNP
as/IN
they/PRP
shift/VBP
to/TO
free-market/JJ
economies/NNS
./.
A/DT
maxim/NN
of/IN
Frankfurt/NNP
banking/NN
holds/VBZ
that/IN
wherever/WRB
Deutsche/NNP
Bank/NNP
goes/VBZ
,/,
other/JJ
West/JJ
German/JJ
banks/NNS
follow/VBP
./.
Indeed/RB
,/,
at/IN
least/JJS
four/CD
other/JJ
West/JJ
German/JJ
banks/NNS
are/VBP
believed/VBN
to/TO
be/VB
making/VBG
inquiries/NNS
./.
Mattel/NNP
Inc./NNP
said/VBD
third-quarter/JJ
net/JJ
income/NN
rose/VBD
73/CD
%/NN
,/,
to/TO
$/$
38/CD
million/CD
,/,
or/CC
76/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
21.9/CD
million/CD
,/,
or/CC
45/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
ago/RB
./.
Revenue/NN
rose/VBD
34/CD
%/NN
to/TO
$/$
410/CD
million/CD
from/IN
$/$
306.6/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
``/``
Mattel/NNP
's/POS
world-wide/JJ
volume/NN
has/VBZ
grown/VBN
25/CD
%/NN
in/IN
a/DT
climate/NN
of/IN
relatively/RB
flat/JJ
industry/NN
sales/NNS
,/,
''/''
said/VBD
John/NNP
W./NNP
Amerman/NNP
,/,
chairman/NN
./.
He/PRP
said/VBD
the/DT
toy/NN
company/NN
's/POS
``/``
prospects/NNS
for/IN
a/DT
strong/JJ
fourth/JJ
quarter/NN
''/''
are/VBP
also/RB
good/JJ
./.
Mattel/NNP
attributed/VBD
the/DT
jump/NN
in/IN
quarter/NN
net/NN
to/TO
strong/JJ
world-wide/JJ
sales/NNS
of/IN
its/PRP$
Barbie/NNP
doll/NN
,/,
Hot/NNP
Wheels/NNP
cars/NNS
,/,
Disney/NNP
toys/NNS
and/CC
other/JJ
well-known/JJ
toy/NN
lines/NNS
./.
The/DT
company/NN
also/RB
cited/VBD
retail/JJ
trade/NN
and/CC
consumer/NN
demand/NN
for/IN
new/JJ
products/NNS
introduced/VBN
this/DT
year/NN
,/,
such/JJ
as/IN
Cherry/NNP
Merry/NNP
Muffin/NNP
and/CC
Turtle/NNP
Tots/NNP
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Mattel/NNP
net/JJ
more/RBR
than/IN
doubled/VBN
to/TO
$/$
58.9/CD
million/CD
,/,
or/CC
$/$
1.19/CD
a/DT
share/NN
,/,
from/IN
$/$
25.4/CD
million/CD
,/,
or/CC
53/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
ago/RB
./.
Revenue/NN
rose/VBD
25/CD
%/NN
,/,
to/TO
$/$
877.6/CD
million/CD
,/,
from/IN
$/$
702.4/CD
million/CD
./.
Mattel/NNP
said/VBD
the/DT
company/NN
's/POS
sale/NN
of/IN
rights/NNS
to/TO
land/NN
and/CC
buildings/NNS
at/IN
its/PRP$
Hawthorne/NNP
,/,
Calif./NNP
,/,
headquarters/NN
resulted/VBD
in/IN
a/DT
$/$
13/CD
million/CD
charge/NN
to/TO
third-quarter/JJ
operating/NN
profit/NN
./.
The/DT
charge/NN
did/VBD
n't/RB
affect/VB
net/JJ
for/IN
the/DT
quarter/NN
as/IN
it/PRP
was/VBD
offset/VBN
by/IN
tax/NN
benefits/NNS
./.
Mattel/NNP
has/VBZ
purchased/VBN
a/DT
new/JJ
headquarters/NN
building/NN
in/IN
El/NNP
Segundo/NNP
,/,
Calif./NNP
,/,
which/WDT
it/PRP
will/MD
occupy/VB
by/IN
the/DT
end/NN
of/IN
next/JJ
year/NN
./.
Democracy/NN
can/MD
be/VB
cruel/JJ
to/TO
politicians/NNS
:/:
Sometimes/RB
it/PRP
forces/VBZ
them/PRP
to/TO
make/VB
choices/NNS
./.
Now/RB
that/IN
the/DT
Supreme/NNP
Court/NNP
opened/VBD
the/DT
door/NN
on/IN
the/DT
subject/NN
of/IN
abortion/NN
,/,
politicians/NNS
are/VBP
squinting/VBG
under/IN
the/DT
glare/NN
of/IN
democratic/JJ
choice/NN
./.
Their/PRP$
discomfort/NN
is/VBZ
a/DT
healthy/JJ
sign/NN
for/IN
the/DT
rest/NN
of/IN
us/PRP
./.
Republicans/NNS
are/VBP
squinting/VBG
most/RBS
painfully/RB
,/,
at/IN
least/JJS
at/IN
first/JJS
,/,
which/WDT
is/VBZ
only/RB
fair/JJ
because/IN
they/PRP
've/VBP
been/VBN
shielded/VBN
the/DT
most/JJS
./.
So/RB
long/RB
as/IN
abortion/NN
was/VBD
a/DT
question/NN
for/IN
litigation/NN
,/,
not/RB
legislation/NN
,/,
Republicans/NNS
could/MD
find/VB
political/JJ
security/NN
in/IN
absolutism/NN
./.
They/PRP
could/MD
attract/VB
one-issue/JJ
voters/NNS
by/IN
adopting/VBG
the/DT
right-to-life/JJ
movement/NN
's/POS
strongest/JJS
position/NN
,/,
even/RB
as/IN
pro-choice/JJ
Republicans/NNS
knew/VBD
this/DT
mattered/VBN
little/JJ
on/IN
an/DT
issue/NN
monopolized/VBN
by/IN
the/DT
court/NN
./.
Now/RB
it/PRP
matters/VBZ
./.
Much/JJ
of/IN
Washington/NNP
thought/VBD
it/PRP
detected/VBD
George/NNP
Bush/NNP
in/IN
a/DT
characteristic/JJ
waffle/NN
on/IN
abortion/NN
the/DT
past/NN
week/NN
./.
Only/RB
a/DT
month/NN
ago/RB
he/PRP
'd/VBD
warned/VBN
Congress/NNP
not/RB
to/TO
pass/VB
legislation/NN
to/TO
pay/VB
for/IN
abortions/NNS
in/IN
cases/NNS
of/IN
rape/NN
or/CC
incest/NN
./.
Last/JJ
Friday/NNP
,/,
after/IN
Congress/NNP
passed/VBD
it/PRP
anyway/RB
,/,
he/PRP
hinted/VBD
he/PRP
was/VBD
looking/VBG
for/IN
compromise/NN
./.
Was/VBD
the/DT
man/NN
who/WP
once/RB
was/VBD
pro-choice/JJ
,/,
but/CC
later/RBR
pro-life/JJ
,/,
converting/VBG
again/RB
?/.
In/IN
fact/NN
,/,
Mr./NNP
Bush/NNP
's/POS
dance/NN
was/VBD
more/JJR
wiggle/NN
than/IN
waffle/NN
./.
Pro-life/JJ
advocates/NNS
say/VBP
the/DT
White/NNP
House/NNP
never/RB
wavered/VBD
over/IN
the/DT
veto/NN
./.
Christopher/NNP
Smith/NNP
R./NNP
,/,
N.J./NNP
a/DT
pro-life/JJ
leader/NN
in/IN
the/DT
House/NNP
,/,
suggested/VBD
a/DT
compromise/NN
that/WDT
would/MD
have/VB
adapted/VBN
restrictive/JJ
language/NN
from/IN
rape/NN
and/CC
incest/NN
exceptions/NNS
in/IN
the/DT
states/NNS
./.
The/DT
White/NNP
House/NNP
,/,
never/RB
eager/JJ
for/IN
a/DT
fight/NN
,/,
was/VBD
happy/JJ
to/TO
try/VB
,/,
which/WDT
is/VBZ
why/WRB
George/NNP
Bush/NNP
said/VBD
he/PRP
was/VBD
looking/VBG
for/IN
``/``
flexibility/NN
''/''
last/JJ
week/NN
./.
When/WRB
Democrats/NNS
refused/VBD
to/TO
budge/VB
,/,
pro-life/JJ
Republicans/NNS
met/VBD
at/IN
the/DT
White/NNP
House/NNP
with/IN
Chief/NNP
of/IN
Staff/NNP
John/NNP
Sununu/NNP
on/IN
Monday/NNP
,/,
and/CC
Mr./NNP
Bush/NNP
quickly/RB
signaled/VBD
a/DT
veto/NN
./.
Amid/IN
charges/NNS
of/IN
``/``
timidity/NN
''/''
on/IN
Panama/NNP
and/CC
elsewhere/RB
,/,
the/DT
president/NN
was/VBD
n't/RB
about/IN
to/TO
offend/VB
his/PRP$
most/RBS
energetic/JJ
constituency/NN
./.
The/DT
GOP/NNP
doubters/NNS
were/VBD
in/IN
Congress/NNP
./.
In/IN
last/JJ
week/NN
's/POS
House/NNP
vote/NN
,/,
41/CD
Republicans/NNS
defected/VBD
./.
After/IN
the/DT
vote/NN
,/,
Connecticut/NNP
Rep./NNP
Nancy/NNP
Johnson/NNP
rounded/VBD
up/RP
nearly/RB
as/IN
many/JJ
signatures/NNS
on/IN
a/DT
letter/NN
to/TO
Mr./NNP
Bush/NNP
urging/VBG
him/PRP
not/RB
to/TO
veto/VB
./.
Even/RB
such/JJ
a/DT
pro-life/JJ
stalwart/NN
as/IN
Sen./NNP
Orrin/NNP
Hatch/NNP
R./NNP
,/,
Utah/NNP
some/DT
kind/NN
of/IN
compromise/NN
./.
The/DT
Senate/NNP
passed/VBD
the/DT
same/JJ
bill/NN
yesterday/NN
,/,
with/IN
a/DT
veto-proof/JJ
majority/NN
of/IN
67/CD
./.
The/DT
manuevering/VBG
illustrates/VBZ
an/DT
emerging/VBG
Republican/JJ
donnybrook/NN
,/,
pacified/VBD
since/IN
the/DT
early/JJ
1980s/CD
./.
At/IN
the/DT
1988/CD
GOP/NNP
convention/NN
,/,
abortion/NN
was/VBD
barely/RB
discussed/VBN
at/IN
all/DT
,/,
though/IN
delegates/NNS
were/VBD
evenly/RB
divided/VBN
on/IN
the/DT
question/NN
of/IN
an/DT
anti-abortion/JJ
constitutional/JJ
amendment/NN
./.
Ms./NNP
Johnson/NNP
made/VBD
a/DT
passionate/JJ
statement/NN
to/TO
the/DT
platform/NN
committee/NN
,/,
but/CC
she/PRP
was/VBD
talking/VBG
to/TO
herself/PRP
./.
Now/RB
many/DT
Republicans/NNS
are/VBP
listening/VBG
./.
They/PRP
're/VBP
frightened/VBN
by/IN
what/WP
they/PRP
see/VBP
in/IN
New/NNP
Jersey/NNP
,/,
and/CC
especially/RB
Virginia/NNP
,/,
where/WRB
pro-life/JJ
GOP/NNP
candidates/NNS
for/IN
governor/NN
are/VBP
being/VBG
pummeled/VBD
on/IN
abortion/NN
./.
Eddie/NNP
Mahe/NNP
,/,
a/DT
Republican/JJ
consultant/NN
,/,
says/VBZ
the/DT
two/CD
GOP/NNP
candidates/NNS
could/MD
have/VB
avoided/VBN
trouble/NN
if/IN
they/PRP
had/VBD
framed/VBN
the/DT
issue/NN
first/RB
./.
Virginia/NNP
,/,
Marshall/NNP
Coleman/NNP
and/CC
his/PRP$
running/VBG
mate/NN
,/,
Eddy/NNP
Dalton/NNP
,/,
are/VBP
both/DT
on/IN
the/DT
defensive/NN
for/IN
opposing/VBG
abortions/NNS
even/RB
in/IN
cases/NNS
of/IN
rape/NN
or/CC
incest/NN
./.
Mr./NNP
Mahe/NNP
adds/VBZ
,/,
``/``
The/DT
net/JJ
loser/NN
in/IN
the/DT
next/JJ
few/JJ
years/NNS
is/VBZ
the/DT
right-to-life/JJ
side/NN
./.
''/''
Darla/NNP
St./NNP
Martin/NNP
,/,
of/IN
the/DT
National/NNP
Right/NNP
to/TO
Life/NNP
Committee/NNP
,/,
says/VBZ
exit/NN
polls/NNS
from/IN
the/DT
1988/CD
election/NN
had/VBD
single-issue/JJ
,/,
pro-life/JJ
voters/NNS
giving/VBG
Mr./NNP
Bush/NNP
about/RB
five/CD
more/JJR
percentage/NN
points/NNS
of/IN
support/NN
than/IN
pro-choice/JJ
voters/NNS
gave/VBD
Michael/NNP
Dukakis/NNP
./.
But/CC
the/DT
Supreme/NNP
Court/NNP
's/POS
opening/NN
of/IN
debate/NN
may/MD
have/VB
changed/VBN
even/RB
that/DT
./.
GOP/NNP
pollster/NN
Neil/NNP
Newhouse/NNP
,/,
of/IN
the/DT
Wirthlin/NNP
Group/NNP
,/,
says/VBZ
polls/NNS
this/DT
summer/NN
showed/VBD
that/IN
the/DT
single-issue/JJ
voters/NNS
had/VBN
about/RB
evened/VBN
out/RP
./.
Polls/NNS
are/VBP
no/DT
substitute/NN
for/IN
principle/NN
,/,
but/CC
they/PRP
'll/MD
do/VB
for/IN
some/DT
politicians/NNS
./.
The/DT
Republican/JJ
danger/NN
is/VBZ
that/DT
abortion/NN
could/MD
become/VB
for/IN
them/PRP
what/WP
it/PRP
's/VBZ
long/RB
been/VBN
for/IN
Democrats/NNS
,/,
a/DT
divisive/JJ
litmus/NN
test/NN
./.
It/PRP
's/VBZ
already/RB
that/DT
in/IN
the/DT
Bush/NNP
administration/NN
,/,
at/IN
least/JJS
for/IN
any/DT
job/NN
in/IN
which/WDT
abortion/NN
is/VBZ
even/RB
remotely/RB
an/DT
issue/NN
./.
Oklahoma/NNP
official/NN
Robert/NNP
Fulton/NNP
lost/VBD
a/DT
chance/NN
for/IN
a/DT
senior/JJ
job/NN
in/IN
the/DT
Department/NNP
of/IN
Health/NNP
and/CC
Human/NNP
Services/NNP
after/IN
right-to-life/JJ
activists/NNS
opposed/VBD
him/PRP
./.
Caldwell/NNP
Butler/NNP
,/,
a/DT
conservative/JJ
former/JJ
congressman/NN
,/,
was/VBD
barred/VBN
from/IN
a/DT
Legal/NNP
Services/NNP
post/NN
,/,
after/IN
he/PRP
gave/VBD
wrong/JJ
answers/NNS
on/IN
abortion/NN
./.
Even/RB
the/DT
president/NN
's/POS
doctor/NN
,/,
Burton/NNP
Lee/NNP
,/,
has/VBZ
said/VBD
on/IN
the/DT
record/NN
that/IN
he/PRP
'd/MD
love/VB
to/TO
be/VB
surgeon/NN
general/JJ
but/CC
could/MD
n't/RB
pass/VB
the/DT
pro-life/JJ
test/NN
./.
In/IN
the/DT
case/NN
of/IN
HHS/NNP
Secretary/NNP
Louis/NNP
Sullivan/NNP
,/,
the/DT
litmus/NN
test/NN
could/MD
yet/RB
damage/VB
issues/NNS
important/JJ
to/TO
other/JJ
parts/NNS
of/IN
the/DT
Republican/JJ
coalition/NN
./.
After/IN
Mr./NNP
Sullivan/NNP
waffled/VBD
on/IN
abortion/NN
last/JJ
year/NN
,/,
the/DT
White/NNP
House/NNP
appeased/VBD
right-to-lifers/NNS
by/IN
surrounding/VBG
him/PRP
with/IN
pro-life/JJ
deputies/NNS
./.
Their/PRP$
views/NNS
on/IN
health/NN
care/NN
and/CC
welfare/NN
did/VBD
n't/RB
much/JJ
matter/NN
,/,
though/IN
HHS/NNP
spends/VBZ
billions/NNS
a/DT
year/NN
on/IN
both/DT
./.
It/PRP
makes/VBZ
only/RB
a/DT
handful/NN
of/IN
abortion-related/JJ
decisions/NNS
./.
Though/IN
Democrats/NNS
can/MD
gloat/VB
at/IN
all/DT
this/DT
for/IN
now/RB
,/,
they/PRP
may/MD
want/VB
to/TO
contain/VB
their/PRP$
glee/NN
./.
On/IN
abortion/NN
,/,
their/PRP$
own/JJ
day/NN
will/MD
come/VB
./.
Eventually/RB
even/RB
Republicans/NNS
will/MD
find/VB
a/DT
way/NN
to/TO
frame/VB
the/DT
issue/NN
in/IN
ways/NNS
that/WDT
expose/VBP
pro-choice/JJ
absolutism/NN
./.
Does/VBZ
the/DT
candidate/NN
favor/VB
parental/JJ
consent/NN
for/IN
teen-age/JJ
abortions/NNS
?/.
The/DT
pro-choice/JJ
lobby/NN
does/VBZ
n't/RB
./.
What/WP
about/IN
banning/VBG
abortions/NNS
in/IN
the/DT
second/JJ
and/CC
third/JJ
trimesters/NNS
?/.
The/DT
lobby/NN
says/VBZ
no/RB
again/RB
./.
Democracy/NN
is/VBZ
forcing/VBG
the/DT
abortion/NN
debate/NN
toward/IN
healthy/JJ
compromise/NN
,/,
toward/IN
the/DT
unpolarizing/VBG
middle/NN
./.
Roe/NNP
v./IN
Wade/NNP
pre-empted/VBD
political/JJ
debate/NN
,/,
so/IN
the/DT
extremes/NNS
blossomed/VBD
./.
Now/RB
the/DT
ambivalent/JJ
middle/NN
,/,
a/DT
moral/JJ
majority/NN
of/IN
sorts/NNS
,/,
is/VBZ
reasserting/VBG
itself/PRP
./.
Within/IN
a/DT
few/JJ
years/NNS
,/,
the/DT
outcome/NN
in/IN
most/JJS
states/NNS
is/VBZ
likely/JJ
to/TO
be/VB
that/DT
abortion/NN
will/MD
be/VB
more/RBR
restricted/VBN
,/,
but/CC
not/RB
completely/RB
banned/VBN
./.
This/DT
is/VBZ
where/WRB
the/DT
voters/NNS
are/VBP
,/,
which/WDT
is/VBZ
where/WRB
politicians/NNS
usually/RB
end/VBP
up/RP
./.
Union/NNP
Pacific/NNP
Corp/NNP
./.
third-quarter/JJ
net/JJ
income/NN
fell/VBD
17/CD
%/NN
./.
Excluding/VBG
earnings/NNS
from/IN
discontinued/VBN
operations/NNS
a/DT
year/NN
earlier/RBR
,/,
net/NN
fell/VBD
only/RB
2/CD
%/NN
./.
The/DT
energy/NN
,/,
natural/JJ
resources/NNS
and/CC
railroad/NN
concern/NN
had/VBD
net/JJ
of/IN
$/$
137.4/CD
million/CD
,/,
or/CC
$/$
1.35/CD
a/DT
share/NN
,/,
down/RB
from/IN
$/$
165/CD
million/CD
,/,
or/CC
$/$
1.44/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
In/IN
the/DT
1988/CD
third/JJ
quarter/NN
,/,
profit/NN
from/IN
continuing/VBG
operations/NNS
totaled/VBD
$/$
140.1/CD
million/CD
./.
A/DT
year/NN
earlier/RBR
,/,
the/DT
company/NN
had/VBD
profit/NN
from/IN
discontinued/VBN
operations/NNS
of/IN
$/$
24.9/CD
million/CD
from/IN
sale/NN
of/IN
a/DT
pipeline/NN
,/,
a/DT
refinery/NN
and/CC
an/DT
interest/NN
in/IN
a/DT
second/JJ
refinery/NN
./.
Revenue/NN
rose/VBD
2/CD
%/NN
to/TO
$/$
1.58/CD
billion/CD
from/IN
$/$
1.54/CD
billion/CD
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Union/NNP
Pacific/NNP
jumped/VBD
$/$
1.375/CD
to/TO
$/$
75/CD
a/DT
share/NN
./.
The/DT
company/NN
said/VBD
its/PRP$
Union/NNP
Pacific/NNP
Railroad/NNP
had/VBD
a/DT
3/CD
%/NN
profit/NN
increase/NN
,/,
despite/IN
a/DT
14/CD
%/NN
rise/NN
in/IN
fuel/NN
costs/NNS
and/CC
a/DT
4/CD
%/NN
drop/NN
in/IN
car/NN
loadings/NNS
./.
Most/JJS
of/IN
the/DT
commodity/NN
traffic/NN
was/VBD
off/JJ
,/,
the/DT
company/NN
said/VBD
./.
Earnings/NNS
from/IN
continuing/VBG
operations/NNS
of/IN
the/DT
Union/NNP
Pacific/NNP
Resources/NNP
unit/NN
almost/RB
doubled/VBD
,/,
the/DT
company/NN
said/VBD
./.
It/PRP
added/VBD
that/IN
higher/JJR
revenue/NN
,/,
strong/JJ
crude/JJ
oil/NN
prices/NNS
and/CC
higher/JJR
natural/JJ
gas/NN
prices/NNS
offset/VBD
declines/NNS
in/IN
production/NN
of/IN
oil/NN
,/,
gas/NN
and/CC
plant/NN
liquids/NNS
./.
In/IN
addition/NN
,/,
the/DT
company/NN
cited/VBD
cost-reduction/JJ
moves/NNS
and/CC
interest/NN
income/NN
./.
Earnings/NNS
from/IN
Union/NNP
Pacific/NNP
Realty/NNP
dropped/VBD
50/CD
%/NN
to/TO
$/$
3/CD
million/CD
./.
Before/IN
good/JJ
will/NN
,/,
Overnite/NNP
Transportation/NNP
earnings/NNS
fell/VBD
11/CD
%/NN
to/TO
$/$
15/CD
million/CD
,/,
Union/NNP
Pacific/NNP
said/VBD
./.
In/IN
the/DT
nine/CD
months/NNS
,/,
net/JJ
fell/VBD
6.3/CD
%/NN
to/TO
$/$
427.7/CD
million/CD
,/,
or/CC
$/$
3.98/CD
a/DT
share/NN
,/,
from/IN
$/$
456.4/CD
million/CD
,/,
or/CC
$/$
4/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Profit/NN
from/IN
continuing/VBG
operations/NNS
in/IN
the/DT
year-earlier/JJ
period/NN
was/VBD
$/$
402.7/CD
million/CD
./.
Revenue/NN
was/VBD
$/$
4.75/CD
billion/CD
,/,
up/RB
6/CD
%/NN
from/IN
$/$
4.49/CD
billion/CD
./.
The/DT
Federal/NNP
Trade/NNP
Commission/NNP
ruled/VBD
that/IN
five/CD
major/JJ
title-insurance/JJ
companies/NNS
illegally/RB
fixed/VBN
prices/NNS
for/IN
title/NN
search-and-examination/JJ
services/NNS
by/IN
participating/VBG
in/IN
joint/JJ
``/``
rating/NN
bureaus/NN
''/''
in/IN
six/CD
states/NNS
./.
The/DT
FTC/NNP
ordered/VBD
the/DT
companies/NNS
not/RB
to/TO
use/VB
rating/NN
bureaus/NN
in/IN
those/DT
six/CD
states/NNS
./.
The/DT
commission/NN
order/NN
named/VBD
the/DT
following/JJ
companies/NNS
:/:
Ticor/NNP
Title/NNP
Insurance/NNP
Co./NNP
of/IN
California/NNP
,/,
a/DT
unit/NN
of/IN
Los/NNP
Angeles-based/JJ
Ticor/NNP
;/:
Chicago/NNP
Title/NNP
Insurance/NNP
Co./NNP
and/CC
Safeco/NNP
Title/NNP
Insurance/NNP
Co./NNP
,/,
units/NNS
of/IN
Chicago/NNP
Title/NNP
&/CC
Trust/NNP
Co./NNP
;/:
Lawyers/NNP
Title/NNP
Insurance/NNP
Corp./NNP
,/,
a/DT
unit/NN
of/IN
Richmond/NNP
,/,
Va.-based/JJ
Universal/NNP
Corp./NNP
;/:
and/CC
Stewart/NNP
Title/NNP
Guaranty/NNP
Co./NNP
,/,
a/DT
unit/NN
of/IN
Houston-based/JJ
Stewart/NNP
Information/NNP
Services/NNP
Corp/NNP
./.
Chicago/NNP
Title/NNP
&/CC
Trust/NNP
acquired/VBD
Safeco/NNP
in/IN
1987/CD
and/CC
changed/VBD
the/DT
unit/NN
's/POS
name/NN
to/TO
Security/NNP
Union/NNP
Title/NNP
Insurance/NNP
Co/NNP
./.
The/DT
FTC/NNP
ruled/VBD
that/IN
the/DT
companies/NNS
violated/VBD
federal/JJ
antitrust/JJ
law/NN
by/IN
fixing/VBG
rates/NNS
in/IN
the/DT
following/JJ
states/NNS
:/:
New/NNP
Jersey/NNP
,/,
Pennsylvania/NNP
,/,
Connecticut/NNP
,/,
Wisconsin/NNP
,/,
Arizona/NNP
and/CC
Montana/NNP
./.
The/DT
FTC/NNP
first/RB
issued/VBD
an/DT
administrative/JJ
complaint/NN
in/IN
the/DT
case/NN
in/IN
1985/CD
./.
John/NNP
Christie/NNP
,/,
a/DT
lawyer/NN
here/RB
for/IN
the/DT
two/CD
Chicago/NNP
Title/NNP
&/CC
Trust/NNP
units/NNS
accused/VBD
the/DT
FTC/NNP
of/IN
``/``
second-guessing/NN
''/''
state-level/JJ
regulations/NNS
,/,
with/IN
which/WDT
,/,
he/PRP
said/VBD
,/,
his/PRP$
clients/NNS
had/VBD
complied/VBN
./.
``/``
I/PRP
expect/VBP
all/DT
the/DT
companies/NNS
to/TO
appeal/VB
,/,
''/''
he/PRP
added/VBD
./.
A/DT
lawyer/NN
for/IN
Lawyers/NNP
Title/NNP
said/VBD
that/IN
,/,
because/IN
the/DT
named/VBN
companies/NNS
no/RB
longer/RB
use/VBP
the/DT
type/NN
of/IN
cooperative/JJ
rating/NN
bureaus/NN
attacked/VBN
by/IN
the/DT
FTC/NNP
,/,
the/DT
commission/NN
's/POS
order/NN
wo/MD
n't/RB
have/VB
much/JJ
practical/JJ
impact/NN
./.
Officials/NNS
for/IN
the/DT
other/JJ
named/VBN
companies/NNS
did/VBD
n't/RB
return/VB
telephone/NN
calls/NNS
seeking/VBG
comment/NN
./.
MARK/NNP
RESOURCES/NNP
INC./NNP
,/,
Calgary/NNP
,/,
Alberta/NNP
,/,
said/VBD
it/PRP
agreed/VBD
to/TO
sell/VB
75/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
63.9/CD
million/CD
8/CD
%/NN
convertible/JJ
debentures/NNS
to/TO
a/DT
group/NN
of/IN
securities/NNS
dealers/NNS
./.
Mark/NNP
,/,
an/DT
oil/NN
and/CC
gas/NN
concern/NN
,/,
said/VBD
the/DT
15-year/JJ
debentures/NNS
are/VBP
convertible/JJ
before/IN
maturity/NN
at/IN
C$/$
12.50/CD
for/IN
each/DT
Mark/NNP
common/JJ
share/NN
,/,
and/CC
can/MD
be/VB
redeemed/VBN
at/IN
the/DT
company/NN
's/POS
option/NN
,/,
under/IN
certain/JJ
conditions/NNS
,/,
after/IN
Nov./NNP
30/CD
,/,
1992/CD
./.
The/DT
government/NN
will/MD
try/VB
to/TO
sell/VB
all/DT
the/DT
real/JJ
estate/NN
managed/VBD
by/IN
the/DT
Federal/NNP
Asset/NNP
Disposition/NNP
Association/NNP
in/IN
one/CD
fell/JJ
swoop/NN
,/,
said/VBD
William/NNP
Seidman/NNP
,/,
chairman/NN
of/IN
the/DT
Federal/NNP
Deposit/NNP
Insurance/NNP
Corp/NNP
./.
The/DT
FADA/NNP
real-estate/NN
package/NN
,/,
with/IN
an/DT
asking/NN
price/NN
of/IN
$/$
428/CD
million/CD
,/,
is/VBZ
comprised/VBN
of/IN
150/CD
properties/NNS
in/IN
Texas/NNP
,/,
California/NNP
,/,
Colorado/NNP
,/,
Arizona/NNP
and/CC
Florida/NNP
./.
It/PRP
includes/VBZ
apartments/NNS
,/,
shopping/NN
centers/NNS
,/,
office/NN
buildings/NNS
and/CC
undeveloped/JJ
land/NN
./.
Mr./NNP
Seidman/NNP
is/VBZ
chairman/NN
of/IN
the/DT
Resolution/NNP
Trust/NNP
Corp./NNP
,/,
established/VBN
to/TO
sell/VB
or/CC
merge/VB
the/DT
nation/NN
's/POS
hundreds/NNS
of/IN
insolvent/JJ
savings-and-loan/JJ
associations/NNS
./.
The/DT
RTC/NNP
,/,
created/VBN
by/IN
this/DT
year/NN
's/POS
S&L/NN
bailout/NN
legislation/NN
,/,
is/VBZ
trying/VBG
to/TO
sell/VB
FADA/NNP
's/POS
network/NN
of/IN
offices/NNS
separately/RB
./.
FADA/NNP
,/,
which/WDT
holds/VBZ
problem/NN
assets/NNS
of/IN
thrifts/NNS
that/WDT
were/VBD
closed/VBN
before/IN
the/DT
bailout/NN
legislation/NN
was/VBD
enacted/VBN
,/,
is/VBZ
being/VBG
liquidated/VBN
./.
The/DT
properties/NNS
held/VBN
by/IN
FADA/NNP
wo/MD
n't/RB
be/VB
sold/VBN
piecemeal/RB
,/,
Mr./NNP
Seidman/NNP
said/VBD
in/IN
a/DT
speech/NN
before/IN
Southern/NNP
Methodist/NNP
University/NNP
Business/NNP
School/NNP
in/IN
Dallas/NNP
./.
``/``
You/PRP
need/VBP
to/TO
buy/VB
the/DT
entire/JJ
lot/NN
,/,
''/''
Mr./NNP
Seidman/NNP
said/VBD
,/,
``/``
so/RB
get/VB
out/RP
your/PRP$
checkbooks/NNS
./.
''/''
The/DT
following/JJ
were/VBD
among/IN
yesterday/NN
's/POS
offerings/NNS
and/CC
pricings/NNS
in/IN
the/DT
U.S./NNP
and/CC
non-U.S./NNP
capital/NN
markets/NNS
,/,
with/IN
terms/NNS
and/CC
syndicate/NN
manager/NN
,/,
as/IN
compiled/VBN
by/IN
Dow/NNP
Jones/NNP
Capital/NNP
Markets/NNP
Report/NNP
:/:
Sequa/NNP
Corp./NNP
--/:
$/$
150/CD
million/CD
of/IN
9/CD
5\/8/CD
%/NN
notes/VBZ
due/NNS
Oct./NNP
15/CD
,/,
1999/CD
,/,
priced/VBN
at/IN
99.75/CD
to/TO
yield/VB
9.664/CD
%/NN
./.
The/DT
noncallable/JJ
issue/NN
was/VBD
priced/VBN
at/IN
a/DT
spread/NN
of/IN
170/CD
basis/NN
points/NNS
above/IN
the/DT
Treasury/NNP
's/POS
10-year/JJ
note/NN
./.
Rated/NNP
Baa-2/NNP
by/IN
Moody/NNP
's/POS
Investors/NNP
Service/NNP
Inc./NNP
and/CC
triple-B-minus/NNP
by/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NNP
,/,
the/DT
issue/NN
will/MD
be/VB
sold/VBN
through/IN
underwriters/NNS
led/VBN
by/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
./.
Virginia/NNP
Public/NNP
School/NNP
Authority/NNP
--/:
$/$
55.7/CD
million/CD
of/IN
school/NN
financing/NN
bonds/NNS
,/,
1989/CD
Series/NNP
B/NNP
1987/CD
resolution/NN
19912000/CD
,/,
2005/CD
and/CC
2010/CD
,/,
through/IN
a/DT
BT/NNP
Securities/NNP
Corp./NNP
group/NN
./.
The/DT
bonds/NNS
,/,
rated/VBN
double-A/NNP
by/IN
Moody/NNP
's/POS
and/CC
S&P/NNP
,/,
were/VBD
priced/VBN
to/TO
yield/VB
from/IN
6/CD
%/NN
in/IN
1991/CD
to/TO
7.10/CD
%/NN
in/IN
2010/CD
./.
Serial/JJ
bonds/NNS
were/VBD
priced/VBN
to/TO
yield/VB
to/TO
6.75/CD
%/NN
in/IN
2000/CD
./.
Bonds/NNS
due/JJ
1991-1996/CD
carry/VBP
6.70/CD
%/NN
coupons/NNS
and/CC
bonds/NNS
due/JJ
1997-2000/CD
carry/VBP
6/CD
3\/4/CD
%/NN
coupons/NNS
./.
Term/NN
bonds/NNS
due/JJ

2005/CD
are/VBP
n't/RB
being/VBG
formally/RB
reoffered/VBN
./.
They/PRP
carry/VBP
a/DT
7/CD
%/NN
coupon/NN
./.
Term/NN
bonds/NNS
due/JJ
2010/CD
are/VBP
7.10/CD
%/JJ
securities/NNS
priced/VBN
at/IN
par/NN
./.
St./NNP
Johns/NNP
River/NNP
Water/NNP
Management/NNP
District/NNP
,/,
Fla./NNP
--/:
$/$
50,005,000/CD
of/IN
land/NN
acquisition/NN
revenue/NN
bonds/NNS
,/,
Series/NN
1989/CD
,/,
due/RB
1990-2000/CD
,/,
2003/CD
,/,
2006/CD
and/CC
2009/CD
,/,
tentatively/RB
priced/VBN
by/IN
a/DT
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
&/CC
Co./NNP
group/NN
to/TO
yield/VB
from/IN
6/CD
%/NN
in/IN
1990/CD
to/TO
about/RB
7.03/CD
%/NN
in/IN
2003/CD
./.
There/EX
are/VBP
$/$
9.76/CD
million/CD
of/IN
7/CD
%/NN
term/NN
bonds/NNS
due/JJ
2003/CD
,/,
priced/VBN
at/IN
99/CD
3\/4/CD
to/TO
yield/VB
about/RB
7.03/CD
%/NN
./.
The/DT
$/$
11,775,000/CD
of/IN
term/NN
bonds/NNS
due/JJ
2006/CD
and/CC
the/DT
$/$
13,865,000/CD
of/IN
term/NN
bonds/NNS
due/JJ
2009/CD
are/VBP
n't/RB
being/VBG
formally/RB
reoffered/VBN
./.
Serial/JJ
bonds/NNS
were/VBD
priced/VBN
at/IN
par/NN
to/TO
yield/NN
to/TO
6.90/CD
%/NN
in/IN
2000/CD
./.
The/DT
bonds/NNS
are/VBP
insured/VBN
and/CC
rated/VBN
triple-A/NNP
by/IN
Moody/NNP
's/POS
and/CC
S&P/NNP
./.
Federal/NNP
Home/NNP
Loan/NNP
Mortgage/NNP
Corp./NNP
--/:
$/$
500/CD
million/CD
of/IN
Remic/NNP
mortgage/NN
securities/NNS
being/VBG
offered/VBN
in/IN
12/CD
classes/NNS
by/IN
Salomon/NNP
Brothers/NNP
Inc/NNP
./.
The/DT
offering/NN
,/,
Series/NNP
105/CD
,/,
is/VBZ
backed/VBN
by/IN
Freddie/NNP
Mac/NNP
9/CD
1\/2/CD
%/NN
securities/NNS
./.
Separately/RB
,/,
$/$
400/CD
million/CD
of/IN
Freddie/NNP
Mac/NNP
Remic/NNP
mortgage/NN
securities/NNS
is/VBZ
being/VBG
offered/VBN
in/IN
10/CD
classes/NNS
by/IN
Kidder/NNP
,/,
Peabody/NNP
&/CC
Co/NNP
./.
The/DT
offering/NN
,/,
Series/NNP
106/CD
,/,
is/VBZ
backed/VBN
by/IN
Freddie/NNP
Mac/NNP
9/CD
1\/2/CD
%/NN
securities/NNS
./.
According/VBG
to/TO
available/JJ
details/NNS
,/,
yields/NNS
range/VBP
from/IN
8.70/CD
%/NN
,/,
a/DT
spread/NN
of/IN
80/CD
basis/NN
points/NNS
over/IN
three-year/JJ
Treasury/NNP
securities/NNS
,/,
to/TO
10.37/CD
%/NN
,/,
a/DT
spread/NN
of/IN
230/CD
basis/NN
points/NNS
over/IN
20-year/JJ
Treasurys/NNPS
./.
The/DT
offerings/NNS
bring/VBP
Freddie/NNP
Mac/NNP
's/POS
1989/CD
Remic/NNP
issuance/NN
to/TO
$/$
32.6/CD
billion/CD
and/CC
its/PRP$
total/JJ
volume/NN
to/TO
$/$
46.5/CD
billion/CD
since/IN
the/DT
program/NN
began/VBD
in/IN
February/NNP
1988/CD
./.
European/NNP
Investment/NNP
Bank/NNP
agency/NN
200/CD
billion/CD
lire/NN
of/IN
12/CD
%/NN
bonds/NNS
due/JJ
Nov./NNP
16/CD
,/,
1995/CD
,/,
priced/VBN
at/IN
101/CD
3\/4/CD
to/TO
yield/VB
12/CD
%/NN
less/CC
full/JJ
fees/NNS
,/,
via/IN
lead/NN
manager/NN
Banco/NNP
Commercial/NNP
Italiana/NNP
./.
Fees/NNS
1/CD
3\/4/CD
./.
IBM/NNP
International/NNP
Finance/NNP
U.S./NNP
parent/NN
125/CD
million/CD
European/JJ
currency/NN
units/NNS
of/IN
9/CD
1\/8/CD
%/NN
bonds/NNS
due/JJ
Nov./NNP
10/CD
,/,
1994/CD
,/,
priced/VBN
at/IN
101/CD
5\/8/CD
to/TO
yield/VB
9.13/CD
%/NN
at/IN
the/DT
recommended/VBN
reoffered/VBN
price/NN
of/IN
par/NN
,/,
via/IN
Banque/NNP
Paribas/NNP
Capital/NNP
Markets/NNP
./.
Societe/NNP
Generale/NNP
Australia/NNP
Ltd/NNP
./.
French/JJ
parent/NN
50/CD
million/CD
Australian/JJ
dollars/NNS
of/IN
17/CD
%/NN
bonds/NNS
due/JJ
Nov./NNP
20/CD
,/,
1991/CD
,/,
priced/VBN
at/IN
101.90/CD
to/TO
yield/VB
16.59/CD
less/CC
fees/NNS
,/,
via/IN
Westpac/NNP
Banking/NNP
Corp/NNP
./.
Guaranteed/VBN
by/IN
Societe/NNP
Generale/NNP
./.
Fees/NNS
1/CD
1\/4/CD
./.
Mitsubishi/NNP
Trust/NNP
&/CC
Banking/NNP
Corp/NNP
./.
Japan/NNP
200/CD
million/CD
Swiss/JJ
francs/NNS
of/IN
privately/RB
placed/VBN
convertible/JJ
notes/NNS
due/JJ
March/NNP
31/CD
,/,
1994/CD
,/,
with/IN
a/DT
fixed/VBN
0.75/CD
%/NN
coupon/NN
at/IN
par/NN
,/,
via/IN
Union/NNP
Bank/NNP
of/IN
Switzerland/NNP
./.
Put/VB
option/NN
on/IN
March/NNP
31/CD
,/,
1992/CD
,/,
at/IN
a/DT
fixed/VBN
107/CD
3\/4/CD
to/TO
yield/VB
3.5/CD
%/NN
./.
Callable/JJ
from/IN
March/NNP
31/CD
,/,
1992/CD
,/,
at/IN
107/CD
3\/4/CD
,/,
declining/VBG
two/CD
points/NNS
semi-annually/RB
to/TO
par/NN
./.
Each/DT
50,000/CD
Swiss/JJ
franc/NN
note/NN
is/VBZ
convertible/JJ
from/IN
Nov/NNP
,/,
27/CD
,/,
1989/CD
,/,
to/TO
March/NNP
21/CD
,/,
1994/CD
,/,
at/IN
a/DT
premium/NN
over/IN
the/DT
closing/VBG
share/NN
price/NN
Oct./NNP
25/CD
,/,
when/WRB
terms/NNS
are/VBP
scheduled/VBN
to/TO
be/VB
fixed/VBN
./.
Also/RB
,/,
the/DT
company/NN
issued/VBN
300/CD
million/CD
marks/NNS
of/IN
convertible/JJ
bonds/NNS
with/IN
an/DT
indicated/VBN
2/CD
3\/4/CD
%/NN
coupon/NN
due/JJ
March/NNP
31/CD
,/,
1995/CD
,/,
at/IN
par/NN
,/,
via/IN
Westdeutsche/NNP
Landesbank/NNP
Girozentrale/NNP
Bank/NNP
./.
Put/VBN
on/RP
March/NNP
31/CD
,/,
1992/CD
,/,
at/IN
an/DT
indicated/VBN
105/CD
to/TO
yield/VB
4.80/CD
%/NN
./.
Call/NN
option/NN
beginning/VBG
March/NNP
31/CD
,/,
1992/CD
,/,
if/IN
the/DT
price/NN
of/IN
the/DT
stock/NN
rises/VBZ
more/RBR
than/IN
50/CD
%/NN
within/IN
30/CD
trading/NN
days/NNS
as/RB
well/RB
as/IN
a/DT
call/NN
option/NN
for/IN
tax/NN
reasons/NNS
./.
Each/DT
1,000/CD
mark/NN
and/CC
10,000/CD
mark/NN
bond/NN
is/VBZ
convertible/JJ
from/IN
Nov./NNP
27/CD
,/,
1989/CD
,/,
to/TO
March/NNP
21/CD
,/,
1995/CD
,/,
at/IN
a/DT
price/NN
to/TO
be/VB
determined/VBN
when/WRB
terms/NNS
are/VBP
fixed/VBN
Oct./NNP
25/CD
./.
Scandinavian/NNP
Airlines/NNP
System/NNP
Sweden/NNP
100/CD
million/CD
Swiss/JJ
francs/NNS
of/IN
6/CD
1\/8/CD
%/NN
bonds/NNS
due/JJ
Nov./NNP
24/CD
,/,
1999/CD
,/,
priced/VBN
at/IN
100/CD
3\/4/CD
to/TO
yield/VB
6.03/CD
%/NN
,/,
via/IN
Union/NNP
Bank/NNP
of/IN
Switzerland/NNP
./.
Call/VB
from/IN
Nov./NNP
24/CD
,/,
1994/CD
,/,
at/IN
101/CD
1\/2/CD
,/,
declining/VBG
1\/4/CD
point/NN
a/DT
year/NN
./.
Federal/NNP
Home/NNP
Loan/NNP
Mortgage/NNP
Corp./NNP
--/:
$/$
400/CD
million/CD
of/IN
10-year/JJ
debentures/NNS
with/IN
a/DT
coupon/NN
rate/NN
of/IN
8.80/CD
%/NN
,/,
priced/VBN
at/IN
par/NN
./.
The/DT
debentures/NNS
,/,
callable/JJ
at/IN
par/NN
in/IN
five/CD
years/NNS
,/,
were/VBD
priced/VBN
at/IN
a/DT
yield/NN
spread/VBD
of/IN
about/RB
86/CD
basis/NN
points/NNS
above/IN
the/DT
Treasury/NNP
10-year/JJ
note/NN
./.
The/DT
issue/NN
is/VBZ
being/VBG
sold/VBN
through/IN
Freddie/NNP
Mac/NNP
's/POS
17-member/JJ
securities/NNS
selling/NN
group/NN
./.
The/DT
debentures/NNS
mature/VBP
Oct./NNP
27/CD
,/,
1999/CD
./.
The/DT
debentures/NNS
will/MD
be/VB
available/JJ
in/IN
book-entry/JJ
form/NN
only/RB
in/IN
a/DT
minimum/NN
amount/NN
of/IN
$/$
5,000/CD
and/CC
additional/JJ
increments/NNS
of/IN
$/$
5,000/CD
./.
Interest/NN
will/MD
be/VB
paid/VBN
semi-annually/RB
./.
First/RB
they/PRP
get/VBP
us/PRP
to/TO
buy/VB
computers/NNS
so/IN
we/PRP
can/MD
get/VB
more/JJR
information/NN
./.
Then/RB
the/DT
computers/NNS
give/VBP
us/PRP
more/JJR
information/NN
than/IN
we/PRP
can/MD
ever/RB
read/VB
./.
Now/RB
they/PRP
plan/VBP
to/TO
sell/VB
us/PRP
products/NNS
that/WDT
sift/VBP
through/IN
all/DT
the/DT
information/NN
to/TO
give/VB
us/PRP
what/WP
we/PRP
really/RB
want/VBP
to/TO
know/VB
./.
The/DT
products/NNS
range/VBP
from/IN
computer-edited/JJ
,/,
personal/JJ
newsletters/NNS
to/TO
systems/NNS
that/WDT
sit/VBP
inside/IN
a/DT
personal/JJ
computer/NN
and/CC
pick/VBP
stories/NNS
on/IN
selected/VBN
topics/NNS
off/IN
news/NN
wires/NNS
./.
``/``
Filtered/VBN
news/NN
is/VBZ
what/WP
people/NNS
want/VBP
,/,
''/''
says/VBZ
Esther/NNP
Dyson/NNP
,/,
editor/NN
of/IN
Release/NNP
1.0/CD
,/,
an/DT
industry/NN
newsletter/NN
that/WDT
spots/VBZ
new/JJ
developments/NNS
./.
``/``
Most/JJS
people/NNS
read/VBD
10/CD
times/NNS
more/JJR
than/IN
necessary/JJ
in/IN
order/NN
to/TO
find/VB
out/RP
what/WP
they/PRP
really/RB
need/VBP
./.
''/''
Geoffrey/NNP
Goodfellow/NNP
,/,
who/WP
dropped/VBD
out/IN
of/IN
high/JJ
school/NN
back/RB
in/IN
the/DT
1970s/CD
to/TO
manage/VB
a/DT
computer/NN
network/NN
at/IN
a/DT
California/NNP
research/NN
firm/NN
,/,
says/VBZ
:/:
``/``
Old/JJ
network/NN
hands/NNS
have/VBP
started/VBN
to/TO
turn/VB
off/RP
the/DT
network/NN
because/IN
they/PRP
do/VBP
n't/RB
have/VB
time/NN
to/TO
wade/VB
through/IN
the/DT
muck/NN
./.
''/''
Mr./NNP
Goodfellow/NNP
has/VBZ
started/VBN
a/DT
Menlo/NNP
Park/NNP
,/,
Calif./NNP
,/,
company/NN
called/VBN
Anterior/NNP
Technology/NNP
that/WDT
provides/VBZ
human/JJ
editors/NNS
for/IN
public/JJ
electronic/JJ
networks/NNS
./.
``/``
I/PRP
see/VBP
it/PRP
as/IN
a/DT
sewage/NN
treatment/NN
plant/NN
,/,
''/''
he/PRP
says/VBZ
./.
A/DT
new/JJ
product/NN
,/,
NewsEdge/NNP
,/,
carries/VBZ
five/CD
business/NN
news/NN
wires/NNS
simultaneously/RB
into/IN
a/DT
user/NN
's/POS
computer/NN
and/CC
beeps/NNS
and/CC
flashes/NNS
whenever/WRB
an/DT
article/NN
appears/VBZ
that/DT
is/VBZ
of/IN
interest/NN
to/TO
the/DT
user/NN
./.
The/DT
product/NN
,/,
developed/VBN
by/IN
Desktop/NNP
Data/NNP
Corp./NNP
,/,
a/DT
new/JJ
company/NN
based/VBN
in/IN
Waltham/NNP
,/,
Mass./NNP
,/,
scans/VBZ
the/DT
wires/NNS
looking/VBG
for/IN
articles/NNS
that/WDT
contain/VBP
key/JJ
words/NNS
specified/VBN
by/IN
the/DT
user/NN
./.
One/CD
early/JJ
user/NN
,/,
David/NNP
Semmel/NNP
,/,
a/DT
Chicago/NNP
venture/NN
capitalist/NN
and/CC
investor/NN
in/IN
Desktop/NNP
Data/NNP
,/,
says/VBZ
he/PRP
uses/VBZ
it/PRP
to/TO
track/VB
takeover/NN
developments/NNS
./.
He/PRP
says/VBZ
he/PRP
told/VBD
NewsEdge/NNP
to/TO
look/VB
for/IN
stories/NNS
containing/VBG
such/JJ
words/NNS
as/IN
takeover/NN
,/,
acquisition/NN
,/,
acquire/NN
,/,
LBO/NNP
,/,
tender/NN
,/,
merger/NN
,/,
junk/NN
and/CC
halted/NN
./.
``/``
I/PRP
'm/VBP
pretty/RB
confident/JJ
I/PRP
'm/VBP
catching/VBG
everything/NN
,/,
''/''
he/PRP
says/VBZ
./.
NewsEdge/NNP
is/VBZ
pricey/JJ
:/:
$/$
7,500/CD
a/DT
year/NN
for/IN
a/DT
limited/VBN
version/NN
,/,
$/$
40,000/CD
a/DT
year/NN
if/IN
the/DT
cost/NN
of/IN
all/DT
the/DT
news/NN
wires/NNS
is/VBZ
included/VBN
./.
And/CC
it/PRP
works/VBZ
best/RBS
in/IN
high-powered/JJ
personal/JJ
computers/NNS
./.
But/CC
some/DT
investors/NNS
and/CC
consultants/NNS
who/WP
have/VBP
tried/VBN
it/PRP
are/VBP
enthusiastic/JJ
./.
Jeffrey/NNP
Tarter/NNP
,/,
editor/NN
of/IN
SoftLetter/NNP
,/,
a/DT
Watertown/NNP
,/,
Mass./NNP
,/,
industry/NN
newsletter/NN
,/,
says/VBZ
:/:
``/``
I/PRP
've/VBP
seen/VBN
a/DT
lot/NN
of/IN
people/NNS
fooling/VBG
around/RP
on/IN
the/DT
fringes/NNS
of/IN
filtering/VBG
information/NN
./.
This/DT
is/VBZ
the/DT
first/JJ
time/NN
I/PRP
've/VBP
seen/VBN
something/NN
I/PRP
could/MD
imagine/VB
a/DT
lot/NN
of/IN
people/NNS
using/VBG
./.
''/''
NewsEdge/NNP
uses/VBZ
an/DT
FM/NNP
radio/NN
band/NN
to/TO
carry/VB
news/NN
wires/NNS
provided/VBN
by/IN
Reuters/NNP
,/,
McGraw-Hill/NNP
and/CC
Dow/NNP
Jones/NNP
&/CC
Co./NNP
,/,
as/RB
well/RB
as/IN
PR/NNP
Newswire/NNP
,/,
which/WDT
carries/VBZ
corporate/JJ
press/NN
releases/NNS
./.
An/DT
FM/NNP
receiver/NN
attached/VBN
to/TO
a/DT
user/NN
's/POS
personal/JJ
computer/NN
receives/VBZ
the/DT
information/NN
./.
Some/DT
organizations/NNS
have/VBP
devised/VBN
their/PRP$
own/JJ
systems/NNS
to/TO
sort/VB
through/IN
news/NN
wire/NN
items/NNS
as/IN
they/PRP
come/VBP
in/RB
./.
George/NNP
Goodwin/NNP
,/,
an/DT
account/NN
manager/NN
at/IN
Royal/NNP
Bank/NNP
of/IN
Canada/NNP
,/,
adapted/VBD
a/DT
Lotus/NNP
Development/NNP
Corp./NNP
program/NN
called/VBN
Agenda/NNP
to/TO
sort/NN
through/IN
international/JJ
news/NN
wires/NNS
./.
It/PRP
automatically/RB
selects/VBZ
stories/NNS
from/IN
particular/JJ
countries/NNS
for/IN
reading/VBG
by/IN
the/DT
international/JJ
bankers/NNS
responsible/JJ
for/IN
lending/VBG
in/IN
those/DT
areas/NNS
./.
For/IN
those/DT
who/WP
do/VBP
n't/RB
need/VB
their/PRP$
personalized/VBN
information/NN
moment/NN
by/IN
moment/NN
,/,
some/DT
services/NNS
are/VBP
offering/VBG
overnight/JJ
newsletters/NNS
./.
Individual/NNP
Inc./NNP
,/,
a/DT
new/JJ
company/NN
in/IN
Brookline/NNP
,/,
Mass./NNP
,/,
uses/VBZ
filtering/VBG
technology/NN
developed/VBN
by/IN
Cornell/NNP
University/NNP
computer/NN
scientist/NN
Gerard/NNP
Salton/NNP
,/,
to/TO
automatically/RB
produce/VB
customized/VBN
newsletters/NNS
it/PRP
sends/VBZ
electronically/RB
to/TO
subscribers/NNS
by/IN
8/CD
a.m./NN
the/DT
next/JJ
day/NN
./.
``/``
We/PRP
are/VBP
operating/VBG
an/DT
information/NN
refinery/NN
that/WDT
takes/VBZ
a/DT
broad/JJ
stream/NN
of/IN
raw/JJ
data/NNS
and/CC
turns/VBZ
it/PRP
into/IN
actionable/JJ
knowledge/NN
,/,
''/''
says/VBZ
Yosi/NNP
Amram/NNP
,/,
founder/NN
and/CC
president/NN
./.
The/DT
daily/JJ
newsletter/NN
,/,
which/WDT
is/VBZ
n't/RB
widely/RB
available/JJ
yet/RB
,/,
will/MD
have/VB
a/DT
base/NN
cost/NN
of/IN
$/$
2,000/CD
a/DT
year/NN
and/CC
provides/VBZ
full/JJ
text/NN
of/IN
relevant/JJ
articles/NNS
under/IN
license/NN
agreements/NNS
with/IN
Reuters/NNP
,/,
McGraw/NNP
Hill/NNP
,/,
United/NNP
Press/NNP
International/NNP
,/,
two/CD
press/NN
release/NN
news/NN
wires/NNS
and/CC
Japan/NNP
's/POS
Kyodo/NNP
news/NN
service/NN
./.
One/CD
early/JJ
user/NN
is/VBZ
NEC/NNP
Corp./NNP
's/POS
U.S./NNP
printer/NN
marketing/NN
arm/NN
./.
``/``
They/PRP
want/VBP
the/DT
full/JJ
press/NN
releases/NNS
on/IN
printer/NN
announcements/NNS
by/IN
their/PRP$
competition/NN
,/,
''/''
Mr./NNP
Amram/NNP
says/VBZ
./.
It/PRP
also/RB
tracks/VBZ
personnel/NNS
and/CC
financial/JJ
announcements/NNS
by/IN
NEC/NNP
's/POS
distributors/NNS
and/CC
customers/NNS
./.
Individual/NNP
Inc./NNP
's/POS
technology/NN
goes/VBZ
beyond/IN
word/NN
searches/NNS
by/IN
using/VBG
a/DT
computerized/JJ
thesaurus/NN
./.
If/IN
a/DT
customer/NN
asks/VBZ
for/IN
stories/NNS
about/IN
``/``
IBM/NNP
,/,
''/''
the/DT
computer/NN
will/MD
also/RB
supply/VB
stories/NNS
that/WDT
mention/VBP
``/``
I.B.M./NNP
,/,
International/NNP
Business/NNP
Machines/NNP
,/,
or/CC
Big/NNP
Blue/NNP
,/,
''/''
Mr./NNP
Amram/NNP
says/VBZ
./.
Moreover/RB
,/,
Individual/NNP
Inc./NNP
's/POS
computers/NNS
can/MD
weigh/VB
the/DT
value/NN
of/IN
an/DT
article/NN
based/VBN
on/IN
how/WRB
closely/RB
the/DT
story/NN
matches/VBZ
the/DT
subscriber/NN
's/POS
interest/NN
area/NN
./.
It/PRP
compares/VBZ
the/DT
position/NN
of/IN
key/JJ
words/NNS
in/IN
the/DT
story/NN
;/:
words/NNS
in/IN
the/DT
headline/NN
or/CC
first/JJ
paragraph/NN
get/VBP
a/DT
higher/JJR
value/NN
./.
And/CC
it/PRP
calculates/VBZ
how/WRB
often/RB
the/DT
words/NNS
appear/VBP
in/IN
the/DT
story/NN
compared/VBN
with/IN
how/WRB
often/RB
they/PRP
appear/VBP
in/IN
the/DT
entire/JJ
data/NN
base/NN
./.
The/DT
higher/JJR
the/DT
ratio/NN
of/IN
hits/NNS
to/TO
total/JJ
words/NNS
,/,
the/DT
higher/JJR
the/DT
presumed/VBN
value/NN
to/TO
the/DT
reader/NN
./.
Pinpoint/NNP
Information/NNP
Corp./NNP
,/,
Chantilly/NNP
,/,
Va./NNP
,/,
a/DT
producer/NN
of/IN
$/$
1,800-a-year/JJ
personalized/VBN
newsletters/NNS
about/IN
the/DT
computer/NN
industry/NN
that/WDT
started/VBD
full/JJ
operation/NN
last/JJ
month/NN
,/,
relies/VBZ
on/IN
12/CD
human/JJ
readers/NNS
to/TO
code/VB
news/NN
releases/NNS
by/IN
topic/NN
in/IN
order/NN
to/TO
select/VB
items/NNS
for/IN
each/DT
subscriber/NN
./.
``/``
The/DT
computers/NNS
find/VBP
all/DT
the/DT
key/JJ
words/NNS
they/PRP
can/MD
,/,
but/CC
the/DT
editors/NNS
confirm/VBP
every/DT
one/CD
./.
Computer/NN
picking/NN
is/VBZ
n't/RB
perfect/JJ
,/,
''/''
says/VBZ
Harvey/NNP
Golomb/NNP
,/,
president/NN
and/CC
founder/NN
of/IN
Pinpoint/NNP
./.
The/DT
humans/NNS
also/RB
write/VBP
abstracts/NNS
of/IN
articles/NNS
from/IN
some/DT
200/CD
computer/NN
industry/NN
publications/NNS
./.
Once/RB
all/DT
the/DT
articles/NNS
are/VBP
coded/VBN
and/CC
put/VBN
in/IN
a/DT
data/NN
base/NN
,/,
Pinpoint/NNP
's/POS
computers/NNS
pick/VBP
the/DT
most/RBS
relevant/JJ
for/IN
each/DT
subscriber/NN
and/CC
lay/VBD
them/PRP
out/RP
in/IN
a/DT
three-to-five-page/JJ
newsletter/NN
format/NN
;/:
each/DT
newsletter/NN
is/VBZ
sent/VBN
directly/RB
from/IN
the/DT
computer/NN
to/TO
the/DT
subscriber/NN
's/POS
fax/NN
machine/NN
./.
Mr./NNP
Golomb/NNP
says/VBZ
each/DT
of/IN
his/PRP$
computers/NNS
can/MD
produce/VB
and/CC
send/VB
about/RB
75/CD
unique/JJ
newsletters/NNS
a/DT
night/NN
./.
Many/JJ
computer/NN
network/NN
users/NNS
who/WP
never/RB
see/VBP
news/NN
wires/NNS
would/MD
like/VB
to/TO
sort/VB
through/IN
their/PRP$
electronic/JJ
mail/NN
automatically/RB
./.
So-called/JJ
E-mail/NN
is/VBZ
the/DT
collection/NN
of/IN
inter-office/JJ
memos/NNS
,/,
gossip/NN
,/,
technical/JJ
data/NNS
,/,
schedules/NNS
and/CC
directives/NNS
distributed/VBN
over/IN
local/JJ
and/CC
national/JJ
computer/NN
networks/NNS
./.
``/``
All/DT
these/DT
interconnected/VBN
computers/NNS
make/VBP
it/PRP
difficult/JJ
to/TO
sort/VB
out/RP
what/WP
's/VBZ
junk/NN
and/CC
what/WP
's/VBZ
important/JJ
,/,
''/''
says/VBZ
Chuck/NNP
Digate/NNP
,/,
a/DT
former/JJ
Lotus/NNP
Development/NNP
executive/NN
who/WP
has/VBZ
started/VBN
a/DT
new/JJ
company/NN
to/TO
cope/VB
with/IN
the/DT
problem/NN
./.
Mr./NNP
Digate/NNP
says/VBZ
his/PRP$
firm/NN
,/,
Beyond/NNP
Inc./NNP
,/,
has/VBZ
licensed/VBN
technology/NN
known/VBN
as/IN
Information/NNP
Lens/NNP
from/IN
Massachusetts/NNP
Institute/NNP
of/IN
Technology/NNP
and/CC
plans/VBZ
to/TO
develop/VB
it/PRP
for/IN
commercial/JJ
use/NN
./.
The/DT
MIT/NNP
project/NN
devised/VBD
ways/NNS
for/IN
E-mail/NN
to/TO
be/VB
automatically/RB
categorized/VBN
as/IN
top/JJ
priority/NN
if/IN
it/PRP
comes/VBZ
from/IN
certain/JJ
designated/VBN
senders/NNS
or/CC
requires/VBZ
action/NN
in/IN
the/DT
next/JJ
couple/NN
of/IN
days/NNS
./.
Mr./NNP
Digate/NNP
says/VBZ
that/DT
Beyond/NNP
will/MD
refine/VB
the/DT
product/NN
``/``
so/IN
the/DT
message/NN
will/MD
be/VB
smart/JJ
enough/RB
to/TO
know/VB
to/TO
come/VB
back/RB
and/CC
bother/VB
you/PRP
again/RB
next/JJ
week/NN
./.
''/''
And/CC
if/IN
a/DT
user/NN
is/VBZ
busy/JJ
,/,
``/``
he/PRP
can/MD
set/VB
it/PRP
for/IN
crisis/NN
mode/NN
:/:
`/``
Do/VBP
n't/RB
bother/VB
me/PRP
with/IN
reports/NNS
until/IN
Monday/NNP
./.
'/''
''/''
A/DT
program/NN
called/VBN
Notes/NNP
,/,
which/WDT
is/VBZ
under/IN
development/NN
by/IN
Lotus/NNP
,/,
also/RB
is/VBZ
designed/VBN
to/TO
sort/VB
E-mail/NN
sent/VBN
within/IN
work/NN
groups/NNS
./.
One/CD
thing/NN
that/WDT
makes/VBZ
E-mail/NN
difficult/JJ
to/TO
sift/VB
through/IN
is/VBZ
that/IN
each/DT
item/NN
looks/VBZ
the/DT
same/JJ
./.
Notes/NNP
,/,
which/WDT
is/VBZ
designed/VBN
for/IN
advanced/JJ
computers/NNS
that/IN
display/NN
graphics/NNS
,/,
allows/VBZ
mail/NN
senders/NNS
to/TO
put/VB
different/JJ
logos/NNS
on/IN
their/PRP$
mail/NN
./.
A/DT
daily/JJ
news/NN
briefing/NN
from/IN
the/DT
company/NN
librarian/NN
,/,
for/IN
example/NN
,/,
would/MD
have/VB
a/DT
distinctive/JJ
format/NN
on/IN
the/DT
screen/NN
,/,
just/RB
as/IN
a/DT
paper/NN
version/NN
would/MD
have/VB
./.
``/``
With/IN
E-mail/NN
,/,
you/PRP
do/VBP
n't/RB
have/VB
the/DT
visual/JJ
clues/NNS
of/IN
paper/NN
,/,
''/''
says/VBZ
Mr./NNP
Tarter/NNP
,/,
the/DT
editor/NN
of/IN
SoftLetter/NNP
./.
``/``
With/IN
Notes/NNP
,/,
they/PRP
're/VBP
visually/RB
distinct/JJ
./.
''/''
Dean/NNP
Witter/NNP
Reynolds/NNP
Inc./NNP
lost/VBD
its/PRP$
second/JJ
recent/JJ
arbitration/NN
case/NN
involving/VBG
a/DT
former/JJ
bond-trading/JJ
executive/NN
./.
A/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
arbitration/NN
panel/NN
ordered/VBN
Dean/NNP
Witter/NNP
to/TO
pay/VB
$/$
404,294/CD
in/IN
back/JJ
bonuses/NNS
to/TO
William/NNP
Kelly/NNP
,/,
the/DT
company/NN
's/POS
former/JJ
head/NN
of/IN
high-yield/JJ
,/,
high-risk/JJ
junk-bond/NN
trading/NN
and/CC
sales/NNS
./.
It/PRP
also/RB
awarded/VBD
$/$
196,785/CD
in/IN
back/JJ
bonuses/NNS
to/TO
former/JJ
trader/NN
Michael/NNP
Newcomb/NNP
and/CC
$/$
69,105/CD
in/IN
fees/NNS
to/TO
the/DT
two/CD
men/NNS
's/POS
attorneys/NNS
./.
The/DT
sums/NNS
awarded/VBN
to/TO
Messrs./NNS
Kelly/NNP
and/CC
Newcomb/NNP
represent/VBP
bonuses/NNS
the/DT
two/CD
men/NNS
said/VBD
they/PRP
deserved/VBD
from/IN
the/DT
first/JJ
half/NN
of/IN
1988/CD
,/,
but/CC
which/WDT
were/VBD
n't/RB
paid/VBN
because/RB
of/IN
a/DT
dispute/NN
over/IN
an/DT
incentive/NN
contract/NN
./.
Jeffrey/NNP
L./NNP
Liddle/NNP
,/,
the/DT
two/CD
men/NNS
's/POS
attorney/NN
at/IN
Liddle/NNP
,/,
O'Connor/NNP
,/,
Finkelstein/NNP
&/CC
Robinson/NNP
,/,
said/VBD
Mr./NNP
Kelly/NNP
began/VBD
working/VBG
at/IN
Dean/NNP
Witter/NNP
in/IN
1987/CD
./.
Mr./NNP
Kelly/NNP
built/VBD
the/DT
company/NN
's/POS
high-yield/JJ
bond/NN
group/NN
,/,
which/WDT
has/VBZ
been/VBN
a/DT
minor/JJ
player/NN
in/IN
the/DT
junk-bond/NN
arena/NN
./.
Dean/NNP
Witter/NNP
lost/VBD
a/DT
separate/JJ
case/NN
involving/VBG
a/DT
former/JJ
bond/NN
executive/NN
earlier/RBR
this/DT
year/NN
;/:
in/IN
August/NNP
it/PRP
paid/VBD
$/$
666,666/CD
in/IN
back/JJ
pay/NN
and/CC
a/DT
bonus/NN
to/TO
a/DT
former/JJ
corporate-bond/JJ
trading/NN
chief/NN
,/,
Harold/NNP
Bachman/NNP
./.
That/DT
award/NN
ended/VBD
a/DT
dispute/NN
between/IN
Dean/NNP
Witter/NNP
and/CC
Mr./NNP
Bachman/NNP
over/IN
who/WP
was/VBD
responsible/JJ
for/IN
certain/JJ
bond-trading/JJ
losses/NNS
around/IN
the/DT
time/NN
of/IN
the/DT
1987/CD
stock-market/NN
crash/NN
./.
A/DT
spokesman/NN
for/IN
Dean/NNP
Witter/NNP
,/,
a/DT
unit/NN
of/IN
Sears/NNP
,/,
Roebuck/NNP
&/CC
Co./NNP
,/,
declined/VBD
to/TO
comment/VB
./.
DILLARD/NNP
DEPARTMENT/NNP
STORES/NNP
Inc./NNP
said/VBD
it/PRP
offered/VBD
$/$
50/CD
million/CD
of/IN
9/CD
1\/2/CD
%/NN
debentures/NNS
due/JJ
2001/CD
at/IN
par/NN
./.
The/DT
Little/NNP
Rock/NNP
,/,
Ark./NNP
,/,
department-store/NN
retailer/NN
said/VBD
proceeds/NNS
will/MD
be/VB
used/VBN
to/TO
reduce/VB
short-term/JJ
debt/NN
./.
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
was/VBD
the/DT
underwriter/NN
./.
American/NNP
Brands/NNP
Inc./NNP
said/VBD
third-quarter/JJ
net/JJ
income/NN
rose/VBD
13/CD
%/NN
,/,
reflecting/VBG
strong/JJ
gains/NNS
in/IN
its/PRP$
tobacco/NN
and/CC
distilled/VBN
spirits/NNS
businesses/NNS
./.
The/DT
company/NN
,/,
which/WDT
also/RB
has/VBZ
businesses/NNS
in/IN
life/NN
insurance/NN
,/,
office/NN
products/NNS
and/CC
hardware/NN
,/,
and/CC
home-improvement/NN
products/NNS
,/,
said/VBD
net/JJ
income/NN
rose/VBD
to/TO
$/$
166.4/CD
million/CD
,/,
or/CC
$/$
1.71/CD
a/DT
share/NN
,/,
from/IN
$/$
146.8/CD
million/CD
,/,
or/CC
$/$
1.53/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Year-earlier/JJ
results/NNS
for/IN
the/DT
quarter/NN
and/CC
the/DT
nine/CD
months/NNS
were/VBD
restated/VBN
to/TO
reflect/VB
a/DT
change/NN
in/IN
accounting/VBG
standards/NNS
./.
Revenue/NN
declined/VBD
2/CD
%/NN
,/,
to/TO
$/$
3.06/CD
billion/CD
from/IN
$/$
3.13/CD
billion/CD
,/,
because/IN
of/IN
the/DT
sale/NN
of/IN
Southland/NNP
Life/NNP
in/IN
March/NNP
,/,
and/CC
the/DT
impact/NN
of/IN
the/DT
stronger/JJR
U.S./NNP
dollar/NN
on/IN
overseas/JJ
results/NNS
./.
Operating/NN
profit/NN
for/IN
world-wide/JJ
tobacco/NN
products/NNS
rose/VBD
10/CD
%/NN
to/TO
$/$
247.6/CD
million/CD
./.
For/IN
distilled/VBN
spirits/NNS
,/,
operating/NN
profit/NN
rose/VBD
36/CD
%/NN
,/,
to/TO
$/$
24.8/CD
million/CD
./.
In/IN
the/DT
first/JJ
nine/CD
months/NNS
,/,
net/JJ
rose/VBD
1.5/CD
%/NN
,/,
to/TO
$/$
458.8/CD
million/CD
,/,
or/CC
$/$
4.76/CD
a/DT
share/NN
,/,
from/IN
$/$
452/CD
million/CD
,/,
or/CC
$/$
4.50/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
The/DT
year-earlier/JJ
period/NN
included/VBD
$/$
40.1/CD
million/CD
,/,
or/CC
41/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
discontinued/VBN
operations/NNS
./.
Revenue/NN
rose/VBD
to/TO
$/$
9.03/CD
billion/CD
from/IN
$/$
8.98/CD
billion/CD
./.
The/DT
average/JJ
number/NN
of/IN
shares/NNS
outstanding/JJ
rose/VBD
2/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
but/CC
was/VBD
down/RB
4/CD
%/NN
for/IN
the/DT
nine/CD
months/NNS
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
American/NNP
Brands/NNP
shares/NNS
rose/VBD
$/$
1.75/CD
to/TO
$/$
73/CD
./.
SANTA/NNP
FE/NNP
PACIFIC/NNP
PIPELINE/NNP
PARTNERS/NNP
Limited/NNP
Partnership/NNP
,/,
of/IN
Los/NNP
Angeles/NNP
,/,
increased/VBD
its/PRP$
quarterly/JJ
cash/NN
dividend/NN
to/TO
60/CD
cents/NNS
a/DT
unit/NN
from/IN
55/CD
cents/NNS
,/,
payable/JJ
Nov./NNP
14/CD
to/TO
units/NNS
of/IN
record/NN
Oct./NNP
31/CD
./.
The/DT
company/NN
is/VBZ
an/DT
independent/JJ
refined-petroleum-products/JJ
pipeline/NN
serving/VBG
six/CD
Western/JJ
states/NNS
./.
WASHINGTON/NNP
LIES/VBZ
LOW/RB
after/IN
the/DT
stock/NN
market/NN
's/POS
roller-coaster/NN
ride/NN
./.
Lawmakers/NNS
,/,
haunted/VBN
by/IN
charges/NNS
that/IN
some/DT
of/IN
their/PRP$
comments/NNS
contributed/VBD
to/TO
the/DT
1987/CD
crash/NN
,/,
generally/RB
shy/VBP
away/RB
from/IN
calls/NNS
for/IN
sweeping/JJ
new/JJ
legislation/NN
./.
But/CC
a/DT
House/NNP
Energy/NNP
and/CC
Commerce/NNP
subcommittee/NN
will/MD
quiz/VB
SEC/NNP
Chairman/NNP
Breeden/NNP
Wednesday/NNP
,/,
and/CC
Treasury/NNP
Secretary/NNP
Brady/NNP
will/MD
go/VB
before/IN
the/DT
Senate/NNP
Banking/NNP
panel/NN
Thursday/NNP
./.
The/DT
market/NN
's/POS
wild/JJ
week/NN
may/MD
speed/VB
along/RP
the/DT
market-reform/JJ
legislation/NN
that/WDT
has/VBZ
been/VBN
pending/VBG
for/IN
months/NNS
in/IN
the/DT
aftermath/NN
of/IN
the/DT
1987/CD
crash/NN
./.
It/PRP
may/MD
also/RB
expedite/VB
the/DT
SEC/NNP
's/POS
modest/JJ
pending/VBG
changes/NNS
in/IN
junk-bond/NN
disclosure/NN
rules/NNS
and/CC
intensify/VB
the/DT
Treasury/NNP
's/POS
look/NN
at/IN
plans/NNS
for/IN
giving/VBG
new/JJ
tax/NN
breaks/NNS
on/IN
dividends/NNS
and/CC
raising/VBG
taxes/NNS
on/IN
short-term/JJ
trades/NNS
by/IN
pension/NN
funds/NNS
./.
Brady/NNP
and/CC
Breeden/NNP
work/VBP
well/RB
together/RB
on/IN
the/DT
plunge/NN
,/,
despite/IN
the/DT
fact/NN
that/IN
the/DT
Treasury/NNP
secretary/NN
opposed/VBD
Breeden/NNP
's/POS
nomination/NN
to/TO
the/DT
SEC/NNP
post/NN
./.
BAKER/NNP
FALTERS/NNP
in/IN
the/DT
Mideast/NNP
amid/IN
Israeli/JJ
paralysis/NN
and/CC
Palestinian/JJ
politics/NNS
./.
Despite/IN
seeing/VBG
his/PRP$
plan/NN
for/IN
Israeli-Palestinian/JJ
elections/NNS
wither/VBP
,/,
the/DT
cautious/JJ
secretary/NN
of/IN
state/NN
is/VBZ
so/RB
far/RB
unwilling/JJ
to/TO
cut/VB
U.S./NNP
economic/JJ
or/CC
military/JJ
aid/NN
to/TO
force/VB
Israeli/JJ
cooperation/NN
./.
Baker/NNP
nonetheless/RB
remains/VBZ
furious/JJ
both/DT
at/IN
Shamir/NNP
,/,
for/IN
backing/VBG
down/RP
on/IN
the/DT
elections/NNS
,/,
and/CC
at/IN
Shamir/NNP
's/POS
rival/NN
,/,
Peres/NNP
,/,
for/IN
political/JJ
ineptitude/NN
in/IN
forcing/VBG
a/DT
premature/JJ
cabinet/NN
vote/NN
on/IN
Baker/NNP
's/POS
plan/NN
./.
Meanwhile/RB
,/,
some/DT
U.S./NNP
officials/NNS
fear/VBP
PLO/NNP
chief/NN
Arafat/NNP
is/VBZ
getting/VBG
cold/JJ
feet/NNS
and/CC
may/MD
back/VB
off/RP
from/IN
his/PRP$
recent/JJ
moderation/NN
and/CC
renunciation/NN
of/IN
terrorism/NN
./.
He/PRP
is/VBZ
under/IN
intense/JJ
fire/NN
from/IN
other/JJ
Palestinian/JJ
groups/NNS
;/:
Syria/NNP
is/VBZ
pushing/VBG
Ahmad/NNP
Jibril/NNP
,/,
whose/WP$
terrorist/JJ
band/NN
is/VBZ
blamed/VBN
for/IN
the/DT
Pan/NNP
Am/VBP
103/CD
bombing/NN
,/,
as/IN
an/DT
alternative/NN
to/TO
Arafat/NNP
./.
DARMAN'S/NNP

MANEUVERS/NNS
on/IN
the/DT
budget/NN
and/CC
capital/NN
gains/NNS
hurt/VBP
him/PRP
in/IN
Congress/NNP
./.
Republicans/NNS
as/RB
well/RB
as/IN
Democrats/NNS
were/VBD
angered/VBN
by/IN
the/DT
budget/NN
director/NN
's/POS
rejection/NN
of/IN
Speaker/NNP
Foley/NNP
's/POS
effort/NN
to/TO
expedite/VB
a/DT
deficitcutting/NN
measure/NN
by/IN
stripping/VBG
it/PRP
of/IN
the/DT
capital-gains/NNS
tax/NN
cut/NN
as/RB
well/RB
as/IN
pet/JJ
Democratic/JJ
projects/NNS
./.
Darman/NNP
now/RB
blames/VBZ
the/DT
clash/NN
on/IN
miscommunication/NN
,/,
but/CC
House/NNP
GOP/NNP
leader/NN
Michel/NNP
,/,
who/WP
carried/VBD
the/DT
offer/NN
to/TO
him/PRP
,/,
observes/VBZ
,/,
``/``
I/PRP
was/VBD
speaking/VBG
English/NNP
at/IN
the/DT
time/NN
,/,
and/CC
quite/RB
loud/JJ
so/IN
I/PRP
could/MD
be/VB
understood/VBN
./.
''/''
Senate/NNP
GOP/NNP
leader/NN
Dole/NNP
ridicules/VBZ
the/DT
budget/NN
chief/NN
on/IN
the/DT
Senate/NNP
floor/NN
./.
Democratic/JJ
counterpart/NN
Mitchell/NNP
,/,
asked/VBN
to/TO
interpret/VB
Darman/NNP
's/POS
threat/NN
to/TO
make/VB
permanent/JJ
the/DT
across-the-board/JJ
Gramm-Rudman/NNP
cuts/NNS
that/WDT
took/VBD
effect/NN
this/DT
week/NN
,/,
says/VBZ
,/,
``/``
I/PRP
do/VBP
n't/RB
even/RB
bother/VB
to/TO
interpret/VB
them/PRP
./.
''/''
But/CC
Darman/NNP
suggests/VBZ
such/JJ
tensions/NNS
will/MD
dissipate/VB
quickly/RB
./.
``/``
If/IN
I/PRP
can/MD
show/VB
signs/NNS
of/IN
maturity/NN
,/,
almost/RB
anybody/NN
can/MD
,/,
''/''
he/PRP
jokes/VBZ
./.
HHS/NNP
OFFICIALS/NNS
expect/VBP
Secretary/NNP
Sullivan/NNP
to/TO
continue/VB
a/DT
ban/NN
on/IN
research/NN
using/VBG
fetal/JJ
tissue/NN
./.
Before/IN
he/PRP
was/VBD
confirmed/VBN
,/,
Sullivan/NNP
said/VBD
he/PRP
had/VBD
``/``
reservations/NNS
about/IN
any/DT
blanket/NN
prohibitions/NNS
on/IN
medical/JJ
research/NN
./.
''/''
But/CC
now/RB
,/,
an/DT
official/NN
says/VBZ
,/,
he/PRP
is/VBZ
``/``
surrounded/VBN
by/IN
right-to-lifers/NNS
,/,
''/''
who/WP
contend/VBP
that/IN
any/DT
breakthroughs/NNS
in/IN
fetal-tissue/JJ
research/NN
could/MD
increase/VB
the/DT
demand/NN
for/IN
abortions/NNS
./.
COOPERATION/NN
WANES/VBZ
on/IN
weapons/NNS
development/NN
between/IN
the/DT
U.S./NNP
and/CC
Europe/NNP
./.
Britain/NNP
,/,
France/NNP
and/CC
Italy/NNP
pull/VBP
out/IN
of/IN
a/DT
proposal/NN
to/TO
build/VB
new/JJ
NATO/NNP
frigates/NNS
;/:
the/DT
U.S./NNP
and/CC
West/NNP
Germany/NNP
have/VBP
each/DT
withdrawn/VBN
from/IN
missile/NN
projects/NNS
./.
Defense/NN
experts/NNS
say/VBP
joint/JJ
projects/NNS
are/VBP
increasingly/RB
squeezed/VBN
by/IN
budget/NN
pressures/NNS
and/CC
the/DT
desire/NN
to/TO
save/VB
domestic/JJ
jobs/NNS
;/:
some/DT
also/RB
fear/VBP
rising/VBG
protectionism/NN
as/IN
European/JJ
unity/NN
nears/VBZ
./.
BOTH/DT
SIDES/NNS
NOW/RB
:/:
Virginia/NNP
GOP/NNP
lieutenant/NN
governor/NN
candidate/NN
Eddy/NNP
Dalton/NNP
tries/VBZ
to/TO
have/VB
it/PRP
both/DT
ways/NNS
on/IN
the/DT
abortion/NN
issue/NN
./.
Though/IN
she/PRP
opposes/VBZ
abortion/NN
in/IN
almost/RB
all/DT
cases/NNS
,/,
she/PRP
airs/VBZ
a/DT
TV/NN
commercial/NN
using/VBG
pro-choice/JJ
buzzwords/NNS
./.
``/``
A/DT
woman/NN
ought/MD
to/TO
have/VB
a/DT
choice/NN
in/IN
cases/NNS
where/WRB
her/PRP$
life/NN
or/CC
health/NN
are/VBP
in/IN
danger/NN
and/CC
in/IN
cases/NNS
of/IN
rape/NN
or/CC
incest/NN
,/,
''/''
she/PRP
proclaims/VBZ
./.
HOT/JJ
TOPIC/NN
:/:
Interest/NN
in/IN
the/DT
abortion/NN
issue/NN
is/VBZ
so/RB
great/JJ
that/IN
the/DT
Hotline/NNP
,/,
a/DT
daily/JJ
,/,
computer-distributed/JJ
political/JJ
newsletter/NN
,/,
comes/VBZ
up/RP
with/IN
a/DT
spinoff/NN
product/NN
called/VBD
the/DT
Abortion/NNP
Report/NNP
dealing/VBG
solely/RB
with/IN
its/PRP$
political/JJ
implications/NNS
./.
CONSERVATIVES/NNS
EXPECT/VBP
Bush/NNP
to/TO
solidify/VB
their/PRP$
majority/NN
on/IN
a/DT
key/JJ
court/NN
./.
Bush/NNP
has/VBZ
three/CD
vacancies/NNS
to/TO
fill/VB
on/IN
the/DT
prestigious/JJ
D.C./NNP
Circuit/NNP
Court/NNP
,/,
which/WDT
handles/VBZ
many/JJ
important/JJ
regulatory/JJ
issues/NNS
and/CC
is/VBZ
often/RB
considered/VBN
a/DT
warm-up/NN
for/IN
future/JJ
Supreme/NNP
Court/NNP
nominees/NNS
./.
Conservatives/NNS
now/RB
hold/VBP
only/RB
a/DT
5-4/JJ
edge/NN
./.
One/CD
slot/NN
is/VBZ
expected/VBN
to/TO
go/VB
to/TO
EEOC/NNP
Chairman/NNP
Clarence/NNP
Thomas/NNP
,/,
a/DT
black/JJ
conservative/NN
;/:
after/IN
mulling/VBG
a/DT
fight/NN
,/,
liberals/NNS
now/RB
probably/RB
wo/MD
n't/RB
put/VB
up/RP
a/DT
major/JJ
struggle/NN
against/IN
him/PRP
./.
Other/JJ
conservatives/NNS
thought/VBD
to/TO
be/VB
on/IN
the/DT
administration/NN
's/POS
short/JJ
list/NN
include/VBP
Washington/NNP
lawyer/NN
Michael/NNP
Uhlmann/NNP
,/,
who/WP
was/VBD
passed/VBN
over/RP
for/IN
the/DT
No./NN
2/CD
job/NN
at/IN
the/DT
Justice/NNP
Department/NNP
,/,
and/CC
Marshall/NNP
Breger/NNP
,/,
chairman/NN
of/IN
a/DT
U.S./NNP
agency/NN
on/IN
administration/NN
./.
The/DT
Bush/NNP
administration/NN
would/MD
also/RB
like/VB
to/TO
nominate/VB
a/DT
woman/NN
;/:
one/CD
possibility/NN
is/VBZ
former/JJ
Justice/NNP
Department/NNP
official/NN
Victoria/NNP
Toensing/NNP
./.
MINOR/JJ
MEMOS/NNS
:/:
In/IN
the/DT
wake/NN
of/IN
the/DT
failed/VBN
Panama/NNP
coup/NN
,/,
a/DT
bumper/NN
sticker/NN
appears/VBZ
:/:
``/``
Ollie/NNP
Would/MD
Have/VB
Got/NNP
Him/PRP
./.
''/''
.../:
Rep./NNP
Garcia/NNP
,/,
on/IN
trial/NN
for/IN
bribery/NN
and/CC
extortion/NN
,/,
puts/VBZ
statements/NNS
in/IN
the/DT
Congressional/NNP
Record/NNP
attributing/VBG
missed/VBN
votes/NNS
to/TO
``/``
scheduling/NN
conflicts/NNS
./.
''/''
.../:
A/DT
GOP/NNP
Senate/NNP
fund-raising/JJ
letter/NN
from/IN
Sen./NNP
Burns/NNP
of/IN
Montana/NNP
is/VBZ
made/VBN
to/TO
appear/VB
personally/RB
written/VBN
,/,
and/CC
its/PRP$
opening/NN
line/NN
is/VBZ
,/,
``/``
Please/UH
excuse/VB
my/PRP$
handwriting/NN
./.
''/''
But/CC
Burns/NNP
confesses/VBZ
in/IN
an/DT
interview/NN
:/:
``/``
That/DT
's/VBZ
not/RB
my/PRP$
handwriting/NN
./.
''/''
MC/NNP
SHIPPING/NNP
Inc./NNP
,/,
New/NNP
York/NNP
,/,
declared/VBD
an/DT
initial/JJ
quarterly/NN
of/IN
60/CD
cents/NNS
a/DT
share/NN
payable/JJ
Nov./NNP
15/CD
to/TO
shares/NNS
of/IN
record/NN
Oct./NNP
30/CD
./.
The/DT
announcement/NN
boosted/VBD
the/DT
charter-shipping/JJ
company/NN
's/POS
shares/NNS
,/,
which/WDT
closed/VBD
at/IN
$/$
15.125/CD
,/,
up/RB
$/$
1.25/CD
a/DT
share/NN
,/,
in/IN
composite/JJ
trading/NN
on/IN
the/DT
American/NNP
Stock/NNP
Exchange/NNP
./.
The/DT
company/NN
,/,
which/WDT
went/VBD
public/NN
in/IN
May/NNP
,/,
intends/VBZ
to/TO
pay/VB
dividends/NNS
from/IN
available/JJ
cash/NN
flow/NN
;/:
the/DT
amount/NN
may/MD
vary/VB
from/IN
quarter/NN
to/TO
quarter/NN
./.
Ever/RB
since/IN
the/DT
hotly/RB
contested/VBN
America/NNP
's/POS
Cup/NNP
race/NN
last/JJ
year/NN
,/,
the/DT
famous/JJ
yachting/NN
match/NN
has/VBZ
run/VBN
into/IN
more/JJR
rough/JJ
sailing/NN
out/IN
of/IN
the/DT
water/NN
than/IN
in/IN
it/PRP
./.
Now/RB
that/IN
a/DT
key/JJ
member/NN
of/IN
the/DT
San/NNP
Diego/NNP
Yacht/NNP
Club/NNP
team/NN
is/VBZ
splitting/JJ
off/RP
to/TO
form/VB
his/PRP$
own/JJ
team/NN
,/,
even/RB
more/JJR
competition/NN
lies/VBZ
ahead/RB
./.
Peter/NNP
Isler/NNP
,/,
the/DT
winning/VBG
navigator/NN
in/IN
the/DT
past/JJ
two/CD
America/NNP
's/POS
Cup/NNP
challenges/NNS
,/,
has/VBZ
split/VBN
from/IN
the/DT
team/NN
led/VBN
by/IN
Dennis/NNP
Conner/NNP
,/,
skipper/NN
of/IN
the/DT
victorious/JJ
Stars/NNP
&/CC
Stripes/NNP
,/,
to/TO
form/VB
his/PRP$
own/JJ
team/NN
for/IN
the/DT
next/JJ
contest/NN
in/IN
1992/CD
./.
And/CC
,/,
in/IN
addition/NN
to/TO
a/DT
crack/NN
team/NN
of/IN
sailors/NNS
,/,
Mr./NNP
Isler/NNP
has/VBZ
lined/VBN
up/RP
some/DT
real/JJ
brass/NN
to/TO
help/VB
him/PRP
finance/VB
the/DT
syndicate/NN
./.
Isler/NNP
Sailing/NNP
International/NNP
's/POS
advisory/JJ
board/NN
includes/VBZ
Ted/NNP
Turner/NNP
,/,
Turner/NNP
Broadcasting/NNP
chairman/NN
and/CC
a/DT
former/JJ
Cup/NNP
victor/NN
;/:
Peter/NNP
G./NNP
Diamandis/NNP
,/,
head/NN
of/IN
Diamandis/NNP
Communications/NNP
,/,
and/CC
Joseph/NNP
B./NNP
Vittoria/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/NN
of/IN
Avis/NNP
Inc/NNP
./.
His/PRP$
steering/NN
committee/NN
includes/VBZ
other/JJ
notable/JJ
businessmen/NNS
,/,
including/VBG
the/DT
California/NNP
investor/NN
and/CC
old/JJ
salt/NN
Roy/NNP
E./NNP
Disney/NNP
./.
``/``
We/PRP
have/VBP
the/DT
structure/NN
,/,
people/NNS
and/CC
plan/NN
,/,
''/''
Mr./NNP
Isler/NNP
said/VBD
in/IN
a/DT
statement/NN
./.
Now/RB
,/,
the/DT
first/JJ
order/NN
of/IN
business/NN
is/VBZ
raising/VBG
enough/JJ
money/NN
to/TO
keep/VB
his/PRP$
team/NN
afloat/RB
--/:
a/DT
new/JJ
yacht/NN
will/MD
cost/VB
about/RB
$/$
3/CD
million/CD
alone/RB
,/,
and/CC
sailing/NN
syndicate/NN
budgets/NNS
can/MD
easily/RB
run/VB
to/TO
$/$
25/CD
million/CD
for/IN
a/DT
Cup/NNP
challenge/NN
./.
The/DT
split/NN
comes/VBZ
in/IN
the/DT
midst/NN
of/IN
a/DT
court/NN
battle/NN
over/IN
whether/IN
the/DT
San/NNP
Diego/NNP
Yacht/NNP
Club/NNP
should/MD
be/VB
allowed/VBN
to/TO
keep/VB
the/DT
international/JJ
trophy/NN
for/IN
sailing/VBG
a/DT
catamaran/NN
against/IN
the/DT
New/NNP
Zealand/NNP
challengers/NNS
'/POS
90-foot/JJ
monohull/NN
./.
In/IN
September/NNP
,/,
a/DT
New/NNP
York/NNP
appellate/JJ
court/NN
overturned/VBD
a/DT
state/NN
judge/NN
's/POS
ruling/NN
that/WDT
awarded/VBD
the/DT
Cup/NNP
to/TO
the/DT
New/NNP
Zealand/NNP
team/NN
./.
Pending/VBG
an/DT
appeal/NN
by/IN
the/DT
New/NNP
Zealand/NNP
team/NN
,/,
led/VBN
by/IN
Michael/NNP
Fay/NNP
,/,
the/DT
finals/NNS
for/IN
the/DT
next/JJ
Cup/NNP
challenge/NN
are/VBP
scheduled/VBN
to/TO
be/VB
held/VBN
in/IN
mid-1992/NN
in/IN
San/NNP
Diego/NNP
./.
But/CC
because/IN
of/IN
the/DT
uncertainty/NN
of/IN
the/DT
outcome/NN
of/IN
the/DT
suit/NN
,/,
Mr./NNP
Conner/NNP
's/POS
team/NN
has/VBZ
done/VBN
little/JJ
to/TO
begin/VB
gearing/VBG
up/RP
to/TO
defend/VB
its/PRP$
title/NN
./.
``/``
If/IN
you/PRP
do/VBP
n't/RB
know/VB
what/WP
the/DT
rules/NNS
of/IN
the/DT
game/NN
are/VBP
,/,
it/PRP
's/VBZ
hard/JJ
to/TO
start/VB
your/PRP$
fund-raising/NN
or/CC
design/NN
,/,
''/''
said/VBD
Dana/NNP
Smith/NNP
,/,
an/DT
official/NN
with/IN
Team/NNP
Dennis/NNP
Conner/NNP
./.
The/DT
Conner/NNP
team/NN
wo/MD
n't/RB
be/VB
able/JJ
to/TO
negotiate/VB
with/IN
corporate/JJ
sponsors/NNS
until/IN
the/DT
suit/NN
is/VBZ
resolved/VBN
and/CC
the/DT
race/NN
site/NN
is/VBZ
determined/VBN
,/,
Mr./NNP
Smith/NNP
said/VBD
,/,
and/CC
the/DT
syndicate/NN
's/POS
budget/NN
could/MD
easily/RB
reach/VB
$/$
30/CD
million/CD
./.
But/CC
spokesmen/NNS
for/IN
both/DT
Mr./NNP
Isler/NNP
and/CC
Mr./NNP
Conner/NNP
say/VBP
the/DT
formation/NN
of/IN
the/DT
new/JJ
syndicate/NN
has/VBZ
to/TO
do/VB
with/IN
Mr./NNP
Isler/NNP
's/POS
desire/NN
to/TO
skipper/VB
his/PRP$
own/JJ
team/NN
and/CC
begin/VB
planning/VBG
now/RB
,/,
rather/RB
than/IN
any/DT
falling/VBG
out/RP
between/IN
the/DT
two/CD
sportsmen/NNS
./.
Mr./NNP
Smith/NNP
and/CC
a/DT
spokesman/NN
for/IN
the/DT
America/NNP
's/POS
Cup/NNP
Organizing/NNP
Committee/NNP
insist/VBP
that/IN
the/DT
added/VBN
competition/NN
for/IN
the/DT
defender/NN
's/POS
spot/NN
will/MD
only/RB
improve/VB
the/DT
race/NN
./.
Missouri/NNP
farmer/NN
Blake/NNP
Hurst/NNP
writing/VBG
in/IN
the/DT
fall/NN
issue/NN
of/IN
the/DT
Heritage/NNP
Foundation/NNP
's/POS
Policy/NNP
Review/NNP
about/IN
the/DT
proposed/VBN
location/NN
of/IN
a/DT
hazardous-waste/JJ
incinerator/NN
in/IN
his/PRP$
county/NN
:/:
Of/IN
course/NN
I/PRP
'd/MD
rather/RB
have/VB
a/DT
computer/NN
software/NN
firm/NN
in/IN
my/PRP$
backyard/NN
than/IN
a/DT
hazardous/JJ
waste/NN
incinerator/NN
./.
But/CC
I/PRP
'd/MD
also/RB
rather/RB
live/VB
next/JJ
door/NN
to/TO
an/DT
incinerator/NN
than/IN
to/TO
some/DT
of/IN
the/DT
hog/NN
farms/NNS
I/PRP
've/VBP
seen/VBN
(/(
and/CC
smelt/VBN
)/)
in/IN
these/DT
parts/NNS
./.
An/DT
incinerator/NN
is/VBZ
also/RB
probably/RB
better/RBR
than/IN
having/VBG
nobody/NN
next/JJ
door/NN
--/:
on/IN
our/PRP$
farm/NN
there/EX
are/VBP
four/CD
unoccupied/JJ
houses/NNS
./.
On/IN
my/PRP$
four-mile/JJ
drive/NN
to/TO
farm/NN
headquarters/NNS
each/DT
morning/NN
,/,
I/PRP
drive/VBP
by/IN
another/DT
four/CD
empty/JJ
houses/NNS
./.
A/DT
community/NN
of/IN
abandoned/VBN
farmsteads/NNS
,/,
failing/VBG
businesses/NNS
,/,
and/CC
crumbling/VBG
roads/NNS
and/CC
bridges/NNS
is/VBZ
hardly/RB
a/DT
desirable/JJ
one/CD
.../:
./.
The/DT
loss/NN
of/IN
40/CD
jobs/NNS
by/IN
a/DT
depressed/VBN
county/NN
in/IN
rural/JJ
Missouri/NNP
is/VBZ
hardly/RB
of/IN
national/JJ
importance/NN
except/IN
for/IN
this/DT
:/:
If/IN
the/DT
most/RBS
environmentally/RB
safe/JJ
way/NN
of/IN
dealing/VBG
with/IN
a/DT
national/JJ
problem/NN
can/MD
not/RB
be/VB
built/VBN
in/IN
Atchinson/NNP
County/NNP
,/,
what/WP
hope/NN
have/VBP
we/PRP
for/IN
dealing/VBG
with/IN
the/DT
wastes/NNS
our/PRP$
economy/NN
produces/VBZ
?/.
After/IN
all/DT
,/,
farmers/NNS
here/RB
work/VBP
with/IN
``/``
hazardous/JJ
''/''
chemicals/NNS
every/DT
day/NN
,/,
many/JJ
of/IN
them/PRP
the/DT
same/JJ
chemicals/NNS
that/WDT
would/MD
have/VB
been/VBN
destroyed/VBN
in/IN
the/DT
incinerator/NN
./.
We/PRP
know/VBP
they/PRP
are/VBP
dangerous/JJ
,/,
but/CC
if/IN
handled/VBN
with/IN
care/NN
,/,
their/PRP$
benefits/NNS
far/RB
outweigh/VBP
any/DT
risk/NN
to/TO
the/DT
environment/NN
./.
Just/RB
because/IN
Stamford/NNP
,/,
Conn./NNP
,/,
High/NNP
School/NNP
did/VBD
nothing/NN
when/WRB
its/PRP$
valuable/JJ
1930s/NNS
mural/NN
was/VBD
thrown/VBN
in/IN
the/DT
trash/NN
does/VBZ
n't/RB
mean/VB
the/DT
city/NN
no/RB
longer/RBR
owns/VBZ
the/DT
work/NN
of/IN
art/NN
,/,
a/DT
federal/JJ
judge/NN
ruled/VBD
./.
The/DT
mural/NN
,/,
now/RB
valued/VBN
at/IN
$/$
1.3/CD
million/CD
according/VBG
to/TO
appraisers/NNS
,/,
was/VBD
tossed/VBN
in/IN
a/DT
trash/NN
heap/NN
in/IN
1971/CD
by/IN
workers/NNS
who/WP
were/VBD
renovating/VBG
the/DT
building/NN
./.
The/DT
100-foot-long/JJ
mural/NN
,/,
painted/VBN
by/IN
James/NNP
Daugherty/NNP
in/IN
1934/CD
,/,
was/VBD
commissioned/VBN
by/IN
the/DT
federal/JJ
Works/NNP
Project/NNP
Administration/NNP
./.
After/IN
the/DT
discarded/VBN
mural/NN
was/VBD
found/VBN
outside/IN
the/DT
school/NN
by/IN
a/DT
concerned/JJ
Stamford/NNP
graduate/NN
,/,
it/PRP
eventually/RB
was/VBD
turned/VBN
over/RP
to/TO
Hiram/NNP
Hoelzer/NNP
,/,
a/DT
professional/JJ
art/NN
restorer/NN
./.
Throughout/IN
the/DT
1970s/NNS
,/,
Stamford/NNP
school/NN
and/CC
city/NN
officials/NNS
made/VBD
no/DT
effort/NN
to/TO
locate/VB
the/DT
mural/NN
./.
Apparently/RB
the/DT
officials/NNS
did/VBD
n't/RB
even/RB
know/VB
the/DT
mural/NN
was/VBD
missing/VBG
until/IN
1980/CD
,/,
when/WRB
a/DT
researcher/NN
found/VBD
that/IN
the/DT
painting/NN
was/VBD
in/IN
Mr./NNP
Hoelzer/NNP
's/POS
studio/NN
and/CC
questioned/VBD
school/NN
officials/NNS
about/IN
it/PRP
./.
In/IN
1986/CD
,/,
Stamford/NNP
officials/NNS
thanked/VBD
Mr./NNP
Hoelzer/NNP
for/IN
taking/VBG
care/NN
of/IN
the/DT
mural/NN
--/:
and/CC
demanded/VBD
he/PRP
return/VB
it/PRP
as/RB
soon/RB
as/IN
possible/JJ
./.
Mr./NNP
Hoelzer/NNP
,/,
however/RB
,/,
sued/VBD
Stamford/NNP
,/,
claiming/VBG
that/IN
the/DT
city/NN
had/VBD
abandoned/VBN
the/DT
artwork/NN
and/CC
that/IN
it/PRP
had/VBD
waited/VBN
too/RB
long/JJ
to/TO
reclaim/VB
it/PRP
./.
But/CC
Judge/NNP
Louis/NNP
L./NNP
Stanton/NNP
of/IN
federal/JJ
court/NN
in/IN
Manhattan/NNP
ruled/VBD
that/IN
the/DT
city/NN
could/MD
n't/RB
be/VB
faulted/VBN
for/IN
waiting/VBG
too/RB
long/RB
because/IN
it/PRP
did/VBD
n't/RB
realize/VB
until/IN
1986/CD
that/DT
its/PRP$
ownership/NN
of/IN
the/DT
painting/NN
was/VBD
in/IN
dispute/NN
./.
The/DT
judge/NN
also/RB
ruled/VBD
that/IN
the/DT
painting/NN
was/VBD
n't/RB
abandoned/VBN
because/IN
officials/NNS
did/VBD
n't/RB
intend/VB
for/IN
it/PRP
to/TO
be/VB
thrown/VBN
away/RB
and/CC
were/VBD
unaware/JJ
that/IN
the/DT
workmen/NNS
had/VBD
discarded/VBN
it/PRP
./.
Mr./NNP
Hoelzer/NNP
did/VBD
n't/RB
return/VB
phone/NN
calls/NNS
seeking/VBG
comment/NN
on/IN
the/DT
judge/NN
's/POS
decision/NN
./.
The/DT
judge/NN
ordered/VBD
that/IN
a/DT
hearing/NN
be/VB
held/VBN
Nov./NNP
17/CD
to/TO
determine/VB
how/WRB
much/JJ
the/DT
city/NN
should/MD
pay/VB
Mr./NNP
Hoelzer/NNP
for/IN
his/PRP$
services/NNS
./.
Mary/NNP
E./NNP
Sommer/NNP
,/,
corporate/JJ
counsel/NN
for/IN
Stamford/NNP
,/,
said/VBD
the/DT
city/NN
has/VBZ
discussed/VBN
several/JJ
possible/JJ
plans/NNS
for/IN
displaying/VBG
the/DT
mural/NN
,/,
which/WDT
portrays/VBZ
various/JJ
scenes/NNS
from/IN
the/DT
Great/NNP
Depression/NNP
./.
She/PRP
said/VBD
the/DT
mural/NN
``/``
preserves/VBZ
an/DT
era/NN
in/IN
Stamford/NNP
and/CC
in/IN
our/PRP$
country/NN
when/WRB
this/DT
type/NN
of/IN
work/NN
was/VBD
being/VBG
done/VBN
./.
''/''
The/DT
prices/NNS
of/IN
corn/NN
futures/NNS
contracts/NNS
jumped/VBD
amid/IN
rumors/NNS
that/IN
the/DT
Soviet/NNP
Union/NNP
is/VBZ
keeping/VBG
up/RP
its/PRP$
dizzying/JJ
October/NNP
buying/NN
binge/NN
of/IN
U.S./NNP
corn/NN
./.
Those/DT
rumors/NNS
were/VBD
confirmed/VBN
after/IN
the/DT
end/NN
of/IN
trading/NN
yesterday/NN
when/WRB
the/DT
U.S./NNP
Agriculture/NNP
Department/NNP
announced/VBD
that/IN
the/DT
Soviets/NNS
had/VBD
bought/VBN
1.2/CD
million/CD
metric/JJ
tons/NNS
of/IN
U.S./NNP
corn/NN
,/,
bringing/VBG
their/PRP$
U.S./NNP
corn/NN
purchases/NNS
confirmed/VBN
so/RB
far/RB
this/DT
month/NN
to/TO
about/RB
five/CD
million/CD
metric/JJ
tons/NNS
./.
In/IN
trading/NN
at/IN
the/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
,/,
the/DT
corn/NN
contract/NN
for/IN
December/NNP
delivery/NN
jumped/VBD
5.75/CD
cents/NNS
a/DT
bushel/NN
to/TO
settle/VB
at/IN
$/$
2.44/CD
a/DT
bushel/NN
./.
The/DT
Soviet/JJ
purchases/NNS
are/VBP
close/JJ
to/TO
exceeding/VBG
what/WP
some/DT
analysts/NNS
had/VBD
expected/VBN
the/DT
Soviet/NNP
Union/NNP
to/TO
buy/VB
this/DT
fall/NN
,/,
the/DT
season/NN
in/IN
which/WDT
it/PRP
usually/RB
buys/VBZ
much/JJ
of/IN
the/DT
corn/NN
it/PRP
imports/VBZ
from/IN
the/DT
U.S/NNP
./.
That/DT
pace/NN
is/VBZ
causing/VBG
some/DT
analysts/NNS
to/TO
speculate/VB
that/IN
the/DT
Soviet/NNP
Union/NNP
might/MD
soon/RB
purchase/VB
as/RB
much/JJ
as/IN
another/DT
two/CD
million/CD
metric/JJ
tons/NNS
./.
One/CD
sign/NN
that/IN
more/JJR
Soviet/JJ
purchases/NNS
are/VBP
possible/JJ
is/VBZ
that/DT
U.S./NNP
grain/NN
companies/NNS
yesterday/NN
bought/VBD
an/DT
unusually/RB
large/JJ
amount/NN
of/IN
corn/NN
futures/NNS
contracts/NNS
./.
That/DT
sometimes/RB
signals/VBZ
that/IN
they/PRP
are/VBP
laying/VBG
plans/NNS
to/TO
export/VB
corn/NN
./.
By/IN
some/DT
estimates/NNS
,/,
several/JJ
grain/NN
companies/NNS
combined/VBN
bought/VBD
contracts/NNS
for/IN
the/DT
possession/NN
of/IN
roughly/RB
one/CD
million/CD
metric/JJ
tons/NNS
of/IN
corn/NN
./.
By/IN
buying/VBG
futures/NNS
contracts/NNS
,/,
these/DT
companies/NNS
attempt/VBP
to/TO
protect/VB
themselves/PRP
from/IN
swings/NNS
in/IN
the/DT
price/NN
of/IN
the/DT
corn/NN
that/IN
they/PRP
are/VBP
obligated/VBN
to/TO
deliver/VB
./.
Rumors/NNP
of/IN
Soviet/JJ
interest/NN
also/RB
pushed/VBD
up/RB
the/DT
prices/NNS
of/IN
soybean/NN
futures/NNS
contracts/NNS
./.
Among/IN
other/JJ
things/NNS
,/,
the/DT
Agriculture/NNP
Department/NNP
is/VBZ
widely/RB
thought/VBN
to/TO
be/VB
mulling/VBG
whether/IN
to/TO
subsidize/VB
the/DT
sale/NN
of/IN
soybean/NN
oil/NN
to/TO
the/DT
Soviet/NNP
Union/NNP
./.
On/IN
top/NN
of/IN
all/DT
this/DT
,/,
corn/NN
and/CC
soybean/NN
prices/NNS
rose/VBD
on/IN
reports/NNS
that/IN
the/DT
Midwest/NNP
harvest/NN
was/VBD
disrupted/VBN
by/IN
a/DT
freakishly/RB
early/JJ
snow/NN
storm/NN
that/WDT
dumped/VBD
several/JJ
inches/NNS
in/IN
parts/NNS
of/IN
Indiana/NNP
and/CC
Ohio/NNP
./.
The/DT
harvest/NN
delays/VBZ
,/,
however/RB
,/,
are/VBP
expected/VBN
to/TO
be/VB
temporary/JJ
./.
Balmy/JJ
temperatures/NNS
are/VBP
forecast/VBN
for/IN
next/JJ
week/NN
,/,
said/VBD
Robert/NNP
Lekberg/NNP
,/,
an/DT
analyst/NN
at/IN
Farmers/NNP
Grain/NNP
&/CC
Livestock/NNP
Corp./NNP
,/,
Chicago/NNP
./.
Many/JJ
farmers/NNS
used/VBD
the/DT
jump/NN
in/IN
prices/NNS
to/TO
sell/VB
their/PRP$
recently/RB
harvested/VBN
crop/NN
to/TO
grain/NN
elevator/NN
companies/NNS
./.
The/DT
heavy/JJ
selling/NN
by/IN
farmers/NNS
helped/VBD
to/TO
damp/VB
the/DT
price/NN
rally/NN
./.
Wheat/NN
futures/NNS
prices/NNS
rose/VBD
slightly/RB
./.
In/IN
other/JJ
commodity/NN
markets/NNS
yesterday/NN
:/:
PRECIOUS/JJ
METALS/NNS
:/:
Futures/NNS
prices/NNS
declined/VBD
./.
A/DT
number/NN
of/IN
developments/NNS
were/VBD
negatively/RB
interpreted/VBN
by/IN
traders/NNS
./.
December/NNP
delivery/NN
gold/NN
fell/VBD
$/$
1.80/CD
an/DT
ounce/NN
to/TO
$/$
370.60/CD
./.
December/NNP
silver/NN
eased/VBD
2.7/CD
cents/NNS
an/DT
ounce/NN
to/TO
$/$
5.133/CD
./.
January/NNP
platinum/NN
was/VBD
down/RB
$/$
3.60/CD
an/DT
ounce/NN
at/IN
$/$
491.10/CD
./.
One/CD
price-depressing/JJ
development/NN
was/VBD
the/DT
lower-than-expected/JJ
increase/NN
of/IN
only/JJ
0.2/CD
%/NN
in/IN
the/DT
consumer/NN
price/NN
index/NN
for/IN
September/NNP
,/,
an/DT
analyst/NN
said/VBD
./.
He/PRP
noted/VBD
that/IN
the/DT
``/``
core/NN
inflation/NN
rate/NN
,/,
''/''
which/WDT
excludes/VBZ
food/NN
and/CC
energy/NN
,/,
was/VBD
also/RB
low/JJ
at/IN
0.2/CD
%/NN
./.
Other/JJ
news/NN
that/WDT
weighed/VBD
on/IN
the/DT
market/NN
:/:
Initial/JJ
unemployment/NN
claims/NNS
rose/VBD
by/IN
62,000/CD
last/JJ
week/NN
;/:
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
Co./NNP
will/MD
reduce/VB
its/PRP$
managerial/JJ
staff/NN
by/IN
15,000/CD
through/IN
attrition/NN
;/:
the/DT
oil/NN
market/NN
turned/VBD
weaker/JJR
;/:
there/EX
was/VBD
n't/RB
any/DT
investor/NN
demand/NN
for/IN
bullion/NN
;/:
and/CC
the/DT
dollar/NN
strengthened/VBD
during/IN
the/DT
day/NN
,/,
putting/VBG
pressure/NN
on/IN
gold/NN
./.
Also/RB
,/,
the/DT
analyst/NN
said/VBD
,/,
economic/JJ
circumstances/NNS
are/VBP
such/JJ
that/IN
both/DT
South/NNP
Africa/NNP
and/CC
the/DT
Soviet/NNP
Union/NNP
,/,
the/DT
principal/JJ
gold/NN
and/CC
platinum/NN
producers/NNS
,/,
are/VBP
being/VBG
forced/VBN
to/TO
continue/VB
selling/VBG
the/DT
metals/NNS
./.
Both/DT
are/VBP
in/IN
great/JJ
need/NN
of/IN
foreign/JJ
exchange/NN
,/,
and/CC
South/NNP
Africa/NNP
is/VBZ
also/RB
under/IN
pressure/NN
to/TO
meet/VB
foreign/JJ
loan/NN
commitments/NNS
,/,
he/PRP
said/VBD
./.
``/``
Putting/VBG
it/PRP
all/DT
together/RB
,/,
we/PRP
have/VBP
a/DT
negative/JJ
scenario/NN
that/WDT
does/VBZ
n't/RB
look/VB
like/IN
it/PRP
will/MD
improve/VB
overnight/RB
,/,
''/''
he/PRP
said/VBD
./.
COPPER/NNP
:/:
Futures/NNS
prices/NNS
recovered/VBD
in/IN
quiet/JJ
trading/NN
./.
The/DT
December/NNP
contract/NN
rose/VBD
1.50/CD
cents/NNS
a/DT
pound/NN
to/TO
$/$
1.2795/CD
./.
That/DT
contract/NN
fell/VBD
a/DT
total/NN
of/IN
5.75/CD
cents/NNS
during/IN
the/DT
first/JJ
three/CD
days/NNS
of/IN
this/DT
week/NN
,/,
mostly/RB
in/IN
reaction/NN
to/TO
last/VB
Friday/NNP
's/POS
stock/NN
market/NN
plunge/NN
,/,
which/WDT
prompted/VBD
concern/NN
that/IN
it/PRP
might/MD
signal/VB
a/DT
similar/JJ
sharp/JJ
slowing/NN
of/IN
the/DT
U.S./NNP
economy/NN
and/CC
thus/RB
reduced/VBN
demand/NN
for/IN
copper/NN
,/,
a/DT
leading/VBG
industrial/JJ
metal/NN
./.
In/IN
recent/JJ
days/NNS
,/,
however/RB
,/,
there/EX
has/VBZ
been/VBN
increased/VBN
purchasing/VBG
of/IN
copper/NN
in/IN
London/NNP
,/,
an/DT
analyst/NN
said/VBD
./.
Some/DT
of/IN
this/DT
buying/NN
was/VBD
by/IN
Japan/NNP
,/,
which/WDT
has/VBZ
had/VBD
its/PRP$
supplies/NNS
sharply/RB
reduced/VBN
by/IN
long/JJ
production/NN
stoppages/NNS
at/IN
the/DT
Bougainville/NNP
mine/NN
in/IN
Papua/NNP
New/NNP
Guinea/NNP
,/,
Highland/NNP
Valley/NNP
mine/NN
in/IN
British/NNP
Columbia/NNP
,/,
and/CC
the/DT
Cananea/NNP
mine/NN
in/IN
Mexico/NNP
,/,
which/WDT
are/VBP
major/JJ
shippers/NNS
to/TO
Japan/NNP
./.
The/DT
increasing/VBG
likelihood/NN
that/IN
Cananea/NNP
and/CC
Highland/NNP
Valley/NNP
will/MD
soon/RB
return/VB
to/TO
production/NN
may/MD
have/VB
cut/VBN
some/DT
of/IN
that/DT
purchasing/NN
,/,
but/CC
even/RB
if/IN
any/DT
of/IN
these/DT
mines/NNS
begin/VBP
operating/VBG
soon/RB
,/,
their/PRP$
output/NN
wo/MD
n't/RB
be/VB
significant/JJ
until/IN
at/IN
least/JJS
the/DT
end/NN
of/IN
the/DT
year/NN
,/,
analysts/NNS
note/VBP
./.
So/RB
,/,
one/CD
analyst/NN
said/VBD
,/,
even/RB
though/IN
the/DT
long-term/JJ
production/NN
problems/NNS
may/MD
be/VB
easing/VBG
,/,
there/EX
will/MD
still/RB
be/VB
a/DT
significant/JJ
need/NN
for/IN
copper/NN
over/IN
the/DT
next/JJ
three/CD
months/NNS
,/,
when/WRB
inventories/NNS
will/MD
remain/VB
relatively/RB
low/JJ
./.
ENERGY/NNP
:/:
Crude/NN
oil/NN
prices/NNS
ended/VBD
mixed/VBN
./.
West/NNP
Texas/NNP
Intermediate/NNP
for/IN
November/NNP
delivery/NN
fell/VBD
14/CD
cents/NNS
a/DT
barrel/NN
to/TO
$/$
20.42/CD
./.
But/CC
so-called/JJ
outer/JJ
month/NN
contracts/NNS
finished/VBD
higher/RBR
./.
For/IN
instance/NN
,/,
December/NNP
contracts/NNS
for/IN
WTI/NNP
rose/VBD
17/CD
cents/NNS
to/TO
$/$
20.42/CD
./.
Most/JJS
energy/NN
futures/NNS
opened/VBD
lower/RBR
,/,
following/VBG
Wednesday/NNP
's/POS
market/NN
downturn/NN
./.
But/CC
a/DT
flurry/NN
of/IN
late/JJ
trading/NN
yesterday/NN
beefed/VBD
up/IN
prices/NNS
./.
Heating/NN
oil/NN
and/CC
gasoline/NN
futures/NNS
ended/VBD
higher/RBR
as/IN
well/RB
./.
Melvin/NNP
Belli/NNP
's/POS
San/NNP
Francisco/NNP
law/NN
offices/NNS
may/MD
have/VB
been/VBN
the/DT
epicenter/NN
of/IN
legal/JJ
activity/NN
after/IN
Tuesday/NNP
's/POS
earthquake/NN
./.
In/IN
the/DT
first/JJ
25/CD
minutes/NNS
after/IN
his/PRP$
office/NN
's/POS
telephone/NN
service/NN
was/VBD
restored/VBN
yesterday/NN
morning/NN
,/,
17/CD
potential/JJ
clients/NNS
had/VBD
called/VBN
seeking/VBG
the/DT
services/NNS
of/IN
the/DT
self-proclaimed/JJ
King/NNP
of/IN
Torts/NNP
./.
Mr./NNP
Belli/NNP
,/,
like/IN
many/JJ
other/JJ
personal-injury/JJ
lawyers/NNS
,/,
suspects/VBZ
that/IN
the/DT
earthquake/NN
,/,
which/WDT
measured/VBD
6.9/CD
on/IN
the/DT
Richter/NNP
scale/NN
,/,
will/MD
generate/VB
enough/JJ
lawsuits/NNS
to/TO
keep/VB
this/DT
city/NN
's/POS
personal-injury/JJ
and/CC
construction/NN
lawyers/NNS
busy/JJ
for/IN
quite/RB
some/DT
time/NN
./.
Suits/NNS
are/VBP
likely/JJ
to/TO
be/VB
filed/VBN
against/IN
engineering/NN
firms/NNS
,/,
contractors/NNS
and/CC
developers/NNS
,/,
as/RB
well/RB
as/IN
against/IN
local-government/JJ
agencies/NNS
./.
But/CC
lawyers/NNS
looking/VBG
to/TO
cash/VB
in/RP
on/IN
the/DT
quake/NN
may/MD
have/VB
a/DT
tough/JJ
time/NN
once/IN
their/PRP$
cases/NNS
reach/VBP
a/DT
judge/NN
./.
Experts/NNS
on/IN
California/NNP
tort/NN
law/NN
say/VBP
protections/NNS
afforded/VBN
government/NN
agencies/NNS
in/IN
such/JJ
cases/NNS
are/VBP
pretty/RB
ironclad/JJ
./.
Even/RB
claims/NNS
against/IN
individuals/NNS
and/CC
companies/NNS
face/VBP
significant/JJ
roadblocks/NNS
./.
The/DT
major/JJ
legal/JJ
barrier/NN
is/VBZ
the/DT
principle/NN
that/IN
no/DT
one/PRP
can/MD
be/VB
held/VBN
liable/JJ
for/IN
an/DT
``/``
act/NN
of/IN
God/NNP
./.
''/''
For/IN
now/RB
,/,
says/VBZ
Laurence/NNP
Drivon/NNP
,/,
president-elect/NN
of/IN
the/DT
6,000-member/JJ
California/NNP
Trial/NNP
Lawyers/NNP
Association/NNP
,/,
``/``
the/DT
last/JJ
thing/NN
we/PRP
really/RB
need/VBP
to/TO
worry/VB
about/IN
is/VBZ
whether/IN
anybody/NN
is/VBZ
going/VBG
to/TO
get/VB
sued/VBN
,/,
or/CC
whether/IN
they/PRP
have/VBP
liability/NN
or/CC
not/RB
./.
We/PRP
still/RB
have/VBP
people/NNS
wandering/VBG
around/RB
in/IN
a/DT
daze/NN
in/IN
San/NNP
Francisco/NNP
worrying/VBG
about/IN
whether/IN
it/PRP
's/VBZ
going/VBG
to/TO
rain/VB
tonight/RB
./.
''/''
But/CC
that/DT
wo/MD
n't/RB
stop/VB
plaintiffs/NNS
'/POS
lawyers/NNS
from/IN
seeking/VBG
a/DT
little/JJ
room/NN
for/IN
maneuvering/VBG
./.
In/IN
San/NNP
Francisco/NNP
,/,
they/PRP
argue/VBP
,/,
an/DT
earthquake/NN
was/VBD
a/DT
near/JJ
certainty/NN
./.
Therefore/RB
,/,
engineering/NN
firms/NNS
,/,
construction/NN
contractors/NNS
and/CC
developers/NNS
can/MD
be/VB
sued/VBN
for/IN
not/RB
keeping/VBG
structures/NNS
up/IN
to/TO
standard/NN
,/,
and/CC
government/NN
agencies/NNS
can/MD
be/VB
held/VBN
accountable/JJ
for/IN
failing/VBG
to/TO
properly/RB
protect/VB
citizens/NNS
from/IN
such/JJ
a/DT
foreseeable/JJ
disaster/NN
,/,
if/IN
negligence/NN
can/MD
be/VB
proven/VBN
./.
``/``
My/PRP$
prediction/NN
is/VBZ
there/EX
will/MD
be/VB
mass/JJ
litigation/NN
over/IN
errors/NNS
and/CC
omissions/NNS
in/IN
engineering/NN
and/CC
contracting/NN
,/,
''/''
says/VBZ
Stanley/NNP
Chesley/NNP
,/,
a/DT
well-known/JJ
Cincinnati/NNP
plaintiffs/NNS
lawyer/NN
./.
From/IN
what/WP
he/PRP
saw/VBD
on/IN
television/NN
,/,
Mr./NNP
Chesley/NNP
points/VBZ
out/RP
that/IN
Interstate/NNP
880/CD
,/,
which/WDT
collapsed/VBD
and/CC
killed/VBD
more/JJR
than/IN
200/CD
commuters/NNS
,/,
suffered/VBD
serious/JJ
damage/NN
while/IN
surrounding/VBG
buildings/NNS
appeared/VBD
to/TO
sustain/VB
no/DT
damage/NN
whatsoever/RB
./.
He/PRP
adds/VBZ
that/IN
``/``
they/PRP
were/VBD
aware/JJ
of/IN
the/DT
propensity/NN
for/IN
earthquakes/NNS
and/CC
the/DT
San/NNP
Andreas/NNP
Fault/NNP
./.
''/''
The/DT
flamboyant/JJ
and/CC
publicity-conscious/JJ
Mr./NNP
Belli/NNP
says/VBZ
he/PRP
already/RB
has/VBZ
investigators/NNS
looking/VBG
into/IN
who/WP
could/MD
be/VB
held/VBN
liable/JJ
for/IN
the/DT
damage/NN
on/IN
the/DT
Bay/NNP
Bridge/NNP
and/CC
the/DT
interstate/NN
approaching/VBG
it/PRP
./.
``/``
We/PRP
wo/MD
n't/RB
know/VB
until/IN
the/DT
smoke/NN
clears/VBZ
--/:
but/CC
yes/UH
,/,
we/PRP
're/VBP
looking/VBG
into/IN
it/PRP
,/,
''/''
he/PRP
says/VBZ
./.
Mr./NNP
Belli/NNP
says/VBZ
he/PRP
wants/VBZ
to/TO
know/VB
whether/IN
state/NN
or/CC
federal/JJ
engineers/NNS
or/CC
private/JJ
companies/NNS
could/MD
have/VB
prevented/VBN
the/DT
damage/NN
./.
Mr./NNP
Belli/NNP
,/,
who/WP
was/VBD
at/IN
Candlestick/NNP
Park/NNP
for/IN
the/DT
World/NNP
Series/NNP
Tuesday/NNP
night/NN
,/,
says/VBZ
he/PRP
has/VBZ
hired/VBN
civil/JJ
engineers/NNS
to/TO
check/VB
out/RP
his/PRP$
own/JJ
mildly/RB
damaged/VBN
building/NN
and/CC
to/TO
investigate/VB
the/DT
bridge/NN
collapse/NN
./.
Defense/NN
lawyers/NNS
,/,
perhaps/RB
understandably/RB
,/,
say/VBP
that/IN
plaintiffs/NNS
'/POS
lawyers/NNS
taking/VBG
such/JJ
an/DT
approach/NN
will/MD
have/VB
little/JJ
success/NN
in/IN
pursuing/VBG
their/PRP$
claims/NNS
,/,
though/IN
they/PRP
add/VBP
that/IN
the/DT
facts/NNS
of/IN
each/DT
case/NN
must/MD
be/VB
looked/VBN
at/RP
individually/RB
./.
``/``
A/DT
lot/NN
of/IN
this/DT
is/VBZ
going/VBG
to/TO
be/VB
code-related/JJ
,/,
''/''
says/VBZ
Ignazio/NNP
J./NNP
Ruvolo/NNP
,/,
a/DT
construction/NN
law/NN
specialist/NN
at/IN
Bronson/NNP
,/,
Bronson/NNP
&/CC
McKinnon/NNP
,/,
a/DT
San/NNP
Francisco/NNP
law/NN
firm/NN
./.
Plaintiffs/NNS
,/,
he/PRP
says/VBZ
,/,
will/MD
argue/VB
that/IN
damaged/VBN
structures/NNS
were/VBD
n't/RB
built/VBN
to/TO
proper/JJ
design/NN
standards/NNS
./.
But/CC
if/IN
defendants/NNS
can/MD
prove/VB
that/IN
they/PRP
met/VBD
San/NNP
Francisco/NNP
's/POS
stringent/JJ
building/NN
codes/NNS
,/,
``/``
that/DT
's/VBZ
probably/RB
going/VBG
to/TO
protect/VB
them/PRP
,/,
''/''
Mr./NNP
Ruvolo/NNP
says/VBZ
./.
Government/NNP
entities/NNS
,/,
continues/VBZ
Mr./NNP
Ruvolo/NNP
,/,
could/MD
be/VB
protected/VBN
by/IN
the/DT
California/NNP
Government/NNP
Tort/NNP
Liability/NNP
Act/NNP
./.
Under/IN
the/DT
statute/NN
,/,
agencies/NNS
are/VBP
provided/VBN
``/``
defenses/NNS
that/WDT
normally/RB
are/VBP
n't/RB
available/JJ
in/IN
the/DT
private/JJ
sector/NN
,/,
''/''
Mr./NNP
Ruvolo/NNP
says/VBZ
./.
``/``
The/DT
legislature/NN
does/VBZ
not/RB
want/VB
to/TO
inhibit/VB
the/DT
unique/JJ
government/NN
activities/NNS
by/IN
exposing/VBG
public/JJ
entities/NNS
to/TO
liability/NN
./.
''/''
Built/VBN
into/IN
the/DT
statute/NN
are/VBP
so-called/JJ
design/NN
immunities/NNS
,/,
which/WDT
are/VBP
likely/JJ
to/TO
protect/VB
government/NN
agencies/NNS
,/,
according/VBG
to/TO
Mr./NNP
Ruvolo/NNP
and/CC
Richard/NNP
Covert/NNP
,/,
a/DT
lawyer/NN
with/IN
the/DT
California/NNP
Department/NNP
of/IN
Transportation/NNP
,/,
which/WDT
oversees/VBZ
the/DT
damaged/VBN
Bay/NNP
Bridge/NNP
./.
The/DT
state/NN
is/VBZ
protected/VBN
when/WRB
plans/NNS
and/CC
designs/NNS
for/IN
public/JJ
structures/NNS
were/VBD
approved/VBN
ahead/RB
of/IN
time/NN
or/CC
when/WRB
structures/NNS
met/VBD
previously/RB
approved/VBN
standards/NNS
,/,
says/VBZ
Mr./NNP
Covert/NNP
./.
He/PRP
believes/VBZ
those/DT
defenses/NNS
might/MD
well/RB
apply/VB
to/TO
the/DT
Bay/NNP
Bridge/NNP
collapse/NN
./.
Nevertheless/RB
,/,
he/PRP
adds/VBZ
,/,
``/``
I/PRP
would/MD
n't/RB
get/VB
totally/RB
shocked/VBN
if/IN
we/PRP
get/VBP
lawsuits/NNS
out/IN
of/IN
the/DT
Bay/NNP
Bridge/NNP
./.
''/''
If/IN
there/EX
's/VBZ
going/VBG
to/TO
be/VB
a/DT
race/NN
to/TO
the/DT
courthouse/NN
,/,
it/PRP
has/VBZ
n't/RB
started/VBD
yet/RB
./.
Mr./NNP
Covert/NNP
had/VBD
to/TO
search/VB
through/IN
law/NN
books/NNS
scattered/VBN
on/IN
the/DT
floor/NN
of/IN
his/PRP$
office/NN
yesterday/NN
,/,
and/CC
Mr./NNP
Belli/NNP
's/POS
courtyard/NN
was/VBD
strewn/VBN
with/IN
bricks/NNS
./.
Wednesday/NNP
,/,
Mr./NNP
Belli/NNP
's/POS
staff/NN
was/VBD
n't/RB
permitted/VBN
into/IN
his/PRP$
office/NN
by/IN
city/NN
officials/NNS
worried/VBN
about/IN
their/PRP$
safety/NN
./.
He/PRP
said/VBD
he/PRP
set/VBD
up/RP
shop/NN
on/IN
the/DT
sidewalk/NN
in/IN
front/NN
of/IN
his/PRP$
town-house/NN
office/NN
and/CC
helped/VBN
victims/NNS
apply/VB
for/IN
federal/JJ
aid/NN
--/:
free/JJ
of/IN
charge/NN
./.
In/IN
a/DT
news/NN
release/NN
issued/VBN
by/IN
Mr./NNP
Drivon/NNP
,/,
the/DT
trial/NN
lawyers/NNS
association/NN
also/RB
promised/VBD
free/JJ
assistance/NN
to/TO
victims/NNS
./.
The/DT
association/NN
said/VBD
it/PRP
would/MD
monitor/VB
the/DT
conduct/NN
of/IN
lawyers/NNS
and/CC
warned/VBD
that/IN
solicitation/NN
of/IN
business/NN
is/VBZ
unethical/JJ
./.
What/WP
's/VBZ
in/IN
a/DT
name/NN
?/.
Apparently/RB
a/DT
lot/NN
,/,
according/VBG
to/TO
the/DT
British/JJ
firm/NN
of/IN
Deloitte/NNP
,/,
Haskins/NNP
&/CC
Sells/NNP
./.
The/DT
British/JJ
firm/NN
has/VBZ
begun/VBN
court/NN
proceedings/NNS
in/IN
London/NNP
to/TO
prevent/VB
the/DT
use/NN
of/IN
the/DT
name/NN
``/``
Deloitte/NNP
''/''
by/IN
Deloitte/NNP
,/,
Haskins/NNP
&/CC
Sells/NNP
and/CC
Touche/NNP
Ross/NNP
&/CC
Co./NNP
in/IN
England/NNP
and/CC
the/DT
rest/NN
of/IN
the/DT
world/NN
./.
The/DT
British/JJ
Deloitte/NNP
firm/NN
recently/RB
withdrew/VBD
from/IN
the/DT
merger/NN
of/IN
Deloitte/NNP
and/CC
Touche/NNP
world-wide/JJ
and/CC
joined/VBD
Coopers/NNP
&/CC
Lybrand/NNP
./.
John/NNP
Bullock/NNP
,/,
senior/JJ
partner/NN
of/IN
Deloitte/NNP
in/IN
the/DT
U.K./NNP
,/,
said/VBD
``/``
the/DT
decision/NN
to/TO
start/VB
these/DT
proceedings/NNS
has/VBZ
n't/RB
been/VBN
taken/VBN
lightly/RB
./.
''/''
Mr./NNP
Bullock/NNP
said/VBD
the/DT
British/JJ
firm/NN
has/VBZ
used/VBN
the/DT
name/NN
``/``
Deloitte/NNP
''/''
since/IN
1845/CD
./.
In/IN
the/DT
U.S./NNP
,/,
Deloitte/NNP
,/,
Haskins/NNP
&/CC
Sells/NNP
was/VBD
known/VBN
as/IN
Haskins/NNP
&/CC
Sells/NNP
until/IN
1978/CD
,/,
when/WRB
it/PRP
added/VBD
the/DT
``/``
Deloitte/NNP
''/''
name/NN
of/IN
its/PRP$
British/JJ
affiliate/NN
./.
John/NNP
C./NNP
Burton/NNP
,/,
an/DT
accounting/NN
professor/NN
at/IN
Columbia/NNP
University/NNP
's/POS
Graduate/NNP
School/NNP
of/IN
Business/NNP
,/,
said/VBD
``/``
there/EX
's/VBZ
a/DT
lot/NN
of/IN
emotion/NN
involved/VBN
in/IN
the/DT
name/NN
of/IN
an/DT
accounting/NN
firm/NN
with/IN
a/DT
long/JJ
history/NN
and/CC
with/IN
roots/NNS
in/IN
England/NNP
,/,
where/WRB
accounting/NN
predates/VBZ
the/DT
U.S/NNP
./.
''/''
Although/IN
accountants/NNS
are/VBP
n't/RB
noted/VBN
as/IN
``/``
being/VBG
deeply/RB
emotional/JJ
,/,
they/PRP
really/RB
hold/VBP
it/PRP
all/DT
in/RP
,/,
''/''
said/VBD
Mr./NNP
Burton/NNP
,/,
former/JJ
chief/JJ
accountant/NN
of/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
./.
J./NNP
Michael/NNP
Cook/NNP
,/,
chairman/NN
of/IN
Deloitte/NNP
,/,
Haskins/NNP
&/CC
Sells/NNP
International/NNP
,/,
said/VBD
he/PRP
believes/VBZ
the/DT
legal/JJ
action/NN
by/IN
the/DT
British/JJ
firm/NN
``/``
to/TO
be/VB
without/IN
merit/NN
./.
''/''
Mr./NNP
Cook/NNP
said/VBD
that/IN
last/JJ
June/NNP
,/,
the/DT
international/JJ
executive/JJ
committes/NNS
of/IN
Deloitte/NNP
and/CC
Touche/NNP
agreed/VBD
to/TO
a/DT
world-wide/JJ
merger/NN
./.
``/``
The/DT
merger/NN
is/VBZ
proceeding/VBG
according/VBG
to/TO
plan/NN
,/,
except/IN
as/IN
to/TO
the/DT
withdrawal/NN
of/IN
the/DT
Deloitte/NNP
U.K./NNP
firm/NN
,/,
''/''
he/PRP
said/VBD
./.
Partners/NNS
at/IN
other/JJ
accounting/NN
firms/NNS
say/VBP
that/IN
the/DT
Deloitte/NNP
firm/NN
in/IN
the/DT
U.K./NNP
is/VBZ
filing/VBG
the/DT
suit/NN
to/TO
get/VB
even/RB
with/IN
the/DT
merged/VBN
Deloitte-Touche/NNP
firm/NN
for/IN
keeping/VBG
major/JJ
auditing/NN
work/NN
in/IN
England/NNP
./.
General/NNP
Motors/NNP
Corp./NNP
,/,
a/DT
Deloitte/NNP
audit/NN
client/NN
,/,
for/IN
example/NN
,/,
has/VBZ
agreed/VBN
to/TO
keep/VB
its/PRP$
annual/JJ
$/$
18/CD
million/CD
world-wide/JJ
audit/NN
and/CC
associated/VBN
tax/NN
work/NN
with/IN
the/DT
merged/VBN
Deloitte-Touche/NNP
firm/NN
,/,
to/TO
be/VB
known/VBN
as/IN
Deloitte/NNP
&/CC
Touche/NNP
in/IN
the/DT
U.S/NNP
./.
In/IN
England/NNP
,/,
this/DT
would/MD
mean/VB
that/IN
the/DT
British/JJ
Deloitte/NNP
would/MD
lose/VB
revenue/NN
for/IN
its/PRP$
audit/NN
of/IN
GM/NNP
's/POS
Vauxhill/NNP
unit/NN
./.
The/DT
defection/NN
of/IN
Deloitte/NNP
's/POS
affiliates/NNS
in/IN
Britain/NNP
and/CC
the/DT
Netherlands/NNP
to/TO
Coopers/NNP
&/CC
Lybrand/NNP
will/MD
make/VB
Coopers/NNP
one/CD
of/IN
the/DT
biggest/JJS
accounting/NN
firms/NNS
in/IN
Europe/NNP
,/,
rivaling/VBG
KPMG/NNP
Peat/NNP
Marwick/NNP
there/RB
./.
Although/IN
Coopers/NNP
has/VBZ
n't/RB
been/VBN
courted/VBN
by/IN
other/JJ
major/JJ
accounting/NN
firms/NNS
for/IN
a/DT
merger/NN
,/,
it/PRP
is/VBZ
benefiting/VBG
greatly/RB
from/IN
fallout/NN
from/IN
the/DT
Deloitte-Touche/NNP
merger/NN
./.
In/IN
New/NNP
York/NNP
,/,
Harris/NNP
Amhowitz/NNP
,/,
general/JJ
counsel/NN
of/IN
Coopers/NNP
,/,
said/VBD
Coopers/NNP
``/``
was/VBD
aware/JJ
of/IN
the/DT
litigation/NN
,/,
''/''
but/CC
he/PRP
declined/VBD
further/JJ
comment/NN
./.
He/PRP
also/RB
declined/VBD
to/TO
comment/VB
on/IN
the/DT
name/NN
that/IN
Coopers/NNP
would/MD
use/VB
in/IN
England/NNP
if/IN
Deloitte/NNP
UK/NNP
won/VBD
its/PRP$
litigation/NN
to/TO
keep/VB
its/PRP$
name/NN
./.
Coopers/NNP
uses/VBZ
the/DT
Coopers/NNP
&/CC
Lybrand/NNP
name/NN
world-wide/JJ
./.
William/NNP
Bennett/NNP
,/,
the/DT
White/NNP
House/NNP
drug-policy/NN
director/NN
,/,
accused/VBD
local/JJ
officials/NNS
in/IN
the/DT
Washington/NNP
area/NN
of/IN
blocking/VBG
construction/NN
of/IN
prison/NN
facilities/NNS
to/TO
house/VB
convicted/VBN
drug/NN
dealers/NNS
./.
``/``
Politics/NNS
has/VBZ
essentially/RB
put/VBN
up/RP
a/DT
roadblock/NN
''/''
to/TO
finding/VBG
sites/NNS
for/IN
new/JJ
federal/JJ
prisons/NNS
,/,
Mr./NNP
Bennett/NNP
said/VBD
at/IN
a/DT
news/NN
conference/NN
called/VBN
to/TO
report/VB
on/IN
his/PRP$
``/``
emergency/NN
assistance/NN
program/NN
''/''
for/IN
the/DT
capital/NN
./.
Without/IN
more/JJR
space/NN
to/TO
incarcerate/VB
convicted/VBN
criminals/NNS
,/,
he/PRP
added/VBD
,/,
``/``
we/PRP
will/MD
not/RB
win/VB
the/DT
war/NN
on/IN
drugs/NNS
./.
''/''
Mr./NNP
Bennett/NNP
declared/VBD
in/IN
April/NNP
that/IN
he/PRP
would/MD
make/VB
Washington/NNP
a/DT
``/``
test/NN
case/NN
''/''
for/IN
how/WRB
the/DT
Bush/NNP
administration/NN
would/MD
aid/VB
cities/NNS
afflicted/VBN
by/IN
heavy/JJ
drug/NN
trafficking/NN
and/CC
violence/NN
./.
The/DT
drug/NN
czar/NN
claimed/VBD
that/IN
enforcement/NN
efforts/NNS
are/VBP
working/VBG
here/RB
,/,
``/``
albeit/IN
at/IN
a/DT
slower/JJR
and/CC
more/RBR
halting/JJ
pace/NN
than/IN
we/PRP
would/MD
like/VB
./.
''/''
He/PRP
acknowledged/VBD
,/,
however/RB
,/,
that/IN
Washington/NNP
's/POS
``/``
drug-related/JJ
murder/NN
rate/NN
is/VBZ
intolerably/RB
high/JJ
./.
The/DT
prisons/NNS
are/VBP
too/RB
crowded/JJ
./.
Drugs/NNS
continue/VBP
to/TO
be/VB
sold/VBN
openly/RB
around/IN
schools/NNS
,/,
parks/NNS
and/CC
housing/NN
projects/NNS
./.
''/''
Mr./NNP
Bennett/NNP
declined/VBD
to/TO
name/VB
the/DT
area/NN
officials/NNS
who/WP
he/PRP
believes/VBZ
have/VBP
impeded/VBN
plans/NNS
for/IN
building/VBG
more/JJR
federal/JJ
prisons/NNS
to/TO
ease/VB
Washington/NNP
's/POS
problem/NN
./.
But/CC
other/JJ
Bush/NNP
administration/NN
officials/NNS
have/VBP
criticized/VBN
Maryland/NNP
Gov./NNP
William/NNP
Schaefer/NNP
for/IN
blocking/VBG
the/DT
use/NN
of/IN
possible/JJ
sites/NNS
in/IN
that/DT
state/NN
./.
Administration/NN
officials/NNS
also/RB
have/VBP
said/VBD
that/IN
Washington/NNP
Mayor/NNP
Marion/NNP
Barry/NNP
has/VBZ
delayed/VBN
consideration/NN
of/IN
sites/NNS
in/IN
the/DT
city/NN
./.
In/IN
a/DT
letter/NN
to/TO
Mr./NNP
Bennett/NNP
's/POS
office/NN
,/,
released/VBN
yesterday/NN
,/,
Washington/NNP
's/POS
city/NN
administrator/NN
,/,
Carol/NNP
Thompson/NNP
,/,
complained/VBD
that/IN
the/DT
drug/NN
czar/NN
had/VBD
exaggerated/VBN
the/DT
amount/NN
of/IN
federal/JJ
drug-related/JJ
assistance/NN
provided/VBN
to/TO
the/DT
capital/NN
./.
Referring/VBG
to/TO
Mr./NNP
Bennett/NNP
's/POS
claim/NN
that/IN
the/DT
federal/JJ
government/NN
would/MD
provide/VB
$/$
97/CD
million/CD
in/IN
emergency/NN
federal/JJ
support/NN
,/,
Ms./NNP
Thompson/NNP
wrote/VBD
,/,
``/``
Our/PRP$
analysis/NN
was/VBD
unable/JJ
to/TO
even/RB
come/VB
close/JJ
to/TO
documenting/VBG
that/DT
figure/NN
./.
''/''
Of/IN
his/PRP$
successes/NNS
in/IN
Washington/NNP
,/,
Mr./NNP
Bennett/NNP
stressed/VBD
that/IN
existing/VBG
federal/JJ
prisons/NNS
have/VBP
taken/VBN
custody/NN
of/IN
375/CD
local/JJ
inmates/NNS
./.
He/PRP
also/RB
noted/VBD
that/IN
the/DT
federal/JJ
Drug/NNP
Enforcement/NNP
Administration/NNP
has/VBZ
established/VBN
a/DT
federal-local/JJ
task/NN
force/NN
responsible/JJ
since/IN
April/NNP
for/IN
106/CD
arrests/NNS
and/CC
more/JJR
than/IN
$/$
2/CD
million/CD
in/IN
seizures/NNS
of/IN
drug/NN
dealers/NNS
'/POS
assets/NNS
./.
The/DT
Defense/NNP
Department/NNP
has/VBZ
lent/VBN
the/DT
Washington/NNP
U.S./NNP
attorney/NN
10/CD
prosecutors/NNS
,/,
and/CC
the/DT
Federal/NNP
Bureau/NNP
of/IN
Investigation/NNP
has/VBZ
provided/VBN
crime/NN
laboratory/NN
facilities/NNS
and/CC
training/NN
,/,
he/PRP
added/VBD
./.
What/WP
if/IN
it/PRP
happened/VBD
to/TO
us/PRP
?/.
In/IN
the/DT
wake/NN
of/IN
the/DT
earthquake/NN
in/IN
California/NNP
and/CC
the/DT
devastation/NN
of/IN
Hurricane/NNP
Hugo/NNP
,/,
many/JJ
companies/NNS
in/IN
disaster-prone/JJ
areas/NNS
are/VBP
pondering/VBG
the/DT
question/NN
of/IN
preparedness/NN
./.
Some/DT
,/,
particularly/RB
in/IN
West/NNP
Coast/NNP
earthquake/NN
zones/NNS
,/,
are/VBP
dusting/VBG
off/RP
their/PRP$
evacuation/NN
plans/NNS
,/,
checking/VBG
food/NN
stocks/NNS
and/CC
reminding/VBG
employees/NNS
of/IN
what/WP
to/TO
do/VB
if/IN
emergency/NN
strikes/VBZ
./.
Others/NNS
say/VBP
they/PRP
feel/VBP
confident/JJ
that/IN
steps/NNS
they/PRP
've/VBP
already/RB
taken/VBN
would/MD
see/VB
them/PRP
through/IN
a/DT
disaster/NN
./.
Preparedness/NN
involves/VBZ
more/JJR
than/IN
flashlights/NNS
and/CC
fire/NN
alarms/NNS
these/DT
days/NNS
./.
Some/DT
big/JJ
companies/NNS
have/VBP
teams/NNS
of/IN
in-house/JJ
experts/NNS
focusing/VBG
on/IN
safety/NN
and/CC
business/NN
resumption/NN
./.
Many/JJ
companies/NNS
in/IN
the/DT
path/NN
of/IN
potential/JJ
disaster/NN
have/VBP
set/VBN
up/RP
contingency/NN
offices/NNS
in/IN
safe/JJ
regions/NNS
,/,
hoping/VBG
they/PRP
can/MD
transport/VB
employees/NNS
there/RB
and/CC
resume/VB
operations/NNS
quickly/RB
./.
That/DT
means/VBZ
making/VBG
sure/RB
that/IN
copies/NNS
of/IN
vital/JJ
computer/NN
software/NN
and/CC
company/NN
records/NNS
are/VBP
out/IN
of/IN
harm/NN
's/POS
way/NN
./.
Some/DT
businesses/NNS
--/:
like/IN
Disneyland/NNP
--/:
claim/VBP
that/IN
even/RB
if/IN
they/PRP
became/VBD
isolated/VBN
in/IN
a/DT
crisis/NN
,/,
they/PRP
would/MD
be/VB
able/JJ
to/TO
feed/VB
and/CC
care/VB
for/IN
their/PRP$
people/NNS
for/IN
as/RB
long/JJ
as/IN
five/CD
days/NNS
./.
``/``
Self-sufficiency/NN
has/VBZ
to/TO
be/VB
the/DT
cornerstone/NN
of/IN
your/PRP$
plan/NN
,/,
''/''
says/VBZ
Stephanie/NNP
Masaki-Schatz/NNP
,/,
manager/NN
of/IN
corporate/JJ
emergency/NN
planning/NN
at/IN
Atlantic/NNP
Richfield/NNP
Co./NNP
in/IN
Los/NNP
Angeles/NNP
./.
``/``
If/IN
you/PRP
do/VBP
n't/RB
save/VB
your/PRP$
critical/JJ
people/NNS
,/,
you/PRP
wo/MD
n't/RB
be/VB
able/JJ
to/TO
bring/VB
up/RP
your/PRP$
vital/JJ
business/NN
functions/NNS
./.
''/''
Although/IN
ARCO/NNP
's/POS
head/NN
office/NN
,/,
more/JJR
than/IN
300/CD
miles/NNS
from/IN
the/DT
epicenter/NN
,/,
was/VBD
n't/RB
affected/VBN
by/IN
this/DT
week/NN
's/POS
tremors/NNS
,/,
Ms./NNP
Masaki-Schatz/NNP
used/VBD
the/DT
occasion/NN
to/TO
distribute/VB
a/DT
three-page/JJ
memo/NN
of/IN
``/``
Earthquake/NNP
Tips/NNP
''/''
to/TO
1,200/CD
ARCO/NNP
employees/NNS
./.
``/``
You/PRP
need/VBP
to/TO
capitalize/VB
on/IN
these/DT
moments/NNS
when/WRB
you/PRP
have/VBP
everyone/NN
's/POS
attention/NN
,/,
''/''
she/PRP
says/VBZ
./.
``/``
It/PRP
was/VBD
a/DT
good/JJ
reminder/NN
that/IN
we/PRP
all/DT
need/VBP
to/TO
prepare/VB
prior/RB
to/TO
an/DT
event/NN
./.
''/''
The/DT
ARCO/NNP
memo/NN
urges/VBZ
employees/NNS
to/TO
keep/VB
certain/JJ
supplies/NNS
at/IN
work/NN
,/,
such/JJ
as/IN
solid/JJ
shoes/NNS
and/CC
``/``
heavy/JJ
gloves/NNS
to/TO
clear/VB
debris/NN
./.
''/''
It/PRP
also/RB
recommends/VBZ
that/IN
employees/NNS
be/VB
aware/JJ
of/IN
everyday/JJ
office/NN
items/NNS
that/WDT
could/MD
be/VB
used/VBN
for/IN
emergency/NN
care/NN
or/CC
shelter/NN
./.
Among/IN
the/DT
suggestions/NNS
:/:
Pantyhose/NN
and/CC
men/NNS
's/POS
ties/NNS
could/MD
be/VB
used/VBN
for/IN
slings/NNS
,/,
while/IN
removable/JJ
wooden/JJ
shelves/NNS
might/MD
aid/VB
in/IN
``/``
breaking/VBG
through/IN
office/NN
walls/NNS
./.
''/''
ARCO/NNP
maintains/VBZ
an/DT
office/NN
in/IN
Dallas/NNP
that/WDT
would/MD
take/VB
over/IN
if/IN
payroll/NN
operations/NNS
in/IN
Pasadena/NNP
were/VBD
disrupted/VBN
./.
Two/CD
months/NNS
ago/RB
the/DT
company/NN
set/VBD
up/RP
a/DT
toll-free/JJ
number/NN
,/,
based/VBN
outside/IN
California/NNP
,/,
to/TO
handle/VB
queries/NNS
from/IN
employees/NNS
about/IN
when/WRB
they/PRP
should/MD
report/VB
back/RB
to/TO
work/NN
after/IN
an/DT
earthquake/NN
or/CC
other/JJ
disaster/NN
./.
The/DT
ARCO/NNP
plan/NN
takes/VBZ
into/IN
account/NN
such/JJ
details/NNS
as/IN
which/WDT
aspects/NNS
of/IN
business/NN
are/VBP
busier/JJR
at/IN
certain/JJ
times/NNS
of/IN
the/DT
year/NN
./.
This/DT
way/NN
,/,
depending/VBG
on/IN
when/WRB
a/DT
quake/NN
might/MD
strike/VB
,/,
priorities/NNS
can/MD
be/VB
assigned/VBN
to/TO
departments/NNS
that/WDT
should/MD
be/VB
brought/VBN
back/RB
on/IN
line/NN
first/JJ
./.
At/IN
Hewlett-Packard/NNP
Co./NNP
,/,
the/DT
earthquake/NN
came/VBD
just/RB
as/IN
the/DT
company/NN
was/VBD
reviewing/VBG
its/PRP$
own/JJ
emergency/NN
procedures/NNS
./.
``/``
We/PRP
were/VBD
talking/VBG
about/IN
scheduling/VBG
a/DT
practice/NN
drill/NN
for/IN
November/NNP
,/,
''/''
says/VBZ
Joan/NNP
Tharp/NNP
,/,
a/DT
spokeswoman/NN
./.
``/``
Then/RB
we/PRP
had/VBD
a/DT
real/JJ
one/CD
in/IN
the/DT
afternoon/NN
./.
''/''
The/DT
Palo/NNP
Alto/NNP
,/,
Calif./NNP
,/,
computer/NN
maker/NN
scrambled/VBD
to/TO
set/VB
up/RP
a/DT
special/JJ
phone/NN
line/NN
to/TO
tell/VB
manufacturing/NN
and/CC
support/NN
staff/NN
to/TO
stay/VB
home/NN
Wednesday/NNP
./.
Sales/NNS
and/CC
service/NN
employees/NNS
were/VBD
asked/VBN
to/TO
report/VB
to/TO
work/NN
to/TO
help/VB
Bay/NNP
area/NN
clients/NNS
who/WP
called/VBD
with/IN
computer/NN
problems/NNS
./.
Hewlett-Packard/NNP
also/RB
called/VBD
in/IN
its/PRP$
systems/NNS
experts/NNS
to/TO
restore/VB
its/PRP$
own/JJ
computer/NN
operations/NNS
./.
``/``
That/DT
means/VBZ
we/PRP
can/MD
accept/VB
orders/NNS
''/''
and/CC
begin/VB
getting/VBG
back/RB
to/TO
normal/JJ
,/,
says/VBZ
Ms./NNP
Tharp/NNP
./.
Prompted/VBN
by/IN
an/DT
earlier/JJR
California/NNP
earthquake/NN
,/,
as/RB
well/RB
as/IN
a/DT
fire/NN
in/IN
a/DT
Los/NNP
Angeles/NNP
office/NN
tower/NN
,/,
Great/JJ
Western/NNP
Bank/NNP
in/IN
the/DT
past/NN
year/NN
hired/VBD
three/CD
emergency/NN
planners/NNS
and/CC
spent/VBD
$/$
75,000/CD
equipping/VBG
a/DT
trailer/NN
with/IN
communications/NNS
gear/NN
to/TO
serve/VB
as/IN
an/DT
emergency/NN
headquarters/NN
./.
Although/IN
officials/NNS
of/IN
the/DT
savings/NNS
and/CC
loan/NN
,/,
a/DT
unit/NN
of/IN
Great/JJ
Western/NNP
Financial/NNP
Corp./NNP
,/,
used/VBD
some/DT
of/IN
their/PRP$
new/JJ
plans/NNS
and/CC
equipment/NN
during/IN
this/DT
week/NN
's/POS
quake/NN
,/,
they/PRP
still/RB
lost/VBD
touch/NN
for/IN
more/JJR
than/IN
24/CD
hours/NNS
with/IN
15/CD
branches/NNS
in/IN
the/DT
affected/VBN
areas/NNS
,/,
not/RB
knowing/VBG
if/IN
employees/NNS
were/VBD
injured/VBN
or/CC
vaults/NNS
were/VBD
broken/VBN
open/JJ
./.
``/``
Some/DT
people/NNS
flat/JJ
out/RP
did/VBD
n't/RB
know/VB
what/WP
to/TO
do/VB
,/,
''/''
says/VBZ
Robert/NNP
G./NNP
Lee/NNP
,/,
vice/NN
president/NN
for/IN
emergency/NN
planning/VBG
and/CC
corporate/JJ
security/NN
at/IN
Great/JJ
Western/NNP
./.
As/IN
it/PRP
turned/VBD
out/RP
,/,
bank/NN
employees/NNS
were/VBD
n't/RB
hurt/VBN
and/CC
the/DT
vaults/NNS
withstood/VBD
the/DT
jolts/NNS
./.
Still/RB
,/,
says/VBZ
Mr./NNP
Lee/NNP
:/:
``/``
We/PRP
need/VBP
to/TO
educate/VB
people/NNS
that/IN
they/PRP
need/VBP
to/TO
get/VB
to/TO
a/DT
phone/NN
somehow/RB
,/,
some/DT
way/NN
,/,
to/TO
let/VB
someone/NN
know/VB
what/WP
their/PRP$
status/NN
is/VBZ
./.
''/''
Some/DT
companies/NNS
are/VBP
confident/JJ
that/IN
they/PRP
're/VBP
prepared/VBN
./.
Occidental/NNP
Petroleum/NNP
Corp./NNP
holds/VBZ
regular/JJ
evacuation/NN
drills/NNS
and/CC
stocks/NNS
food/NN
,/,
oxygen/NN
and/CC
non-prescription/JJ
drugs/NNS
at/IN
checkpoints/NNS
in/IN
its/PRP$
16-story/JJ
headquarters/NNS
./.
The/DT
company/NN
also/RB
maintains/VBZ
rechargeable/JJ
flashlights/NNS
in/IN
offices/NNS
and/CC
changes/VBZ
its/PRP$
standby/JJ
supply/NN
of/IN
drinking/NN
water/NN
every/DT
three/CD
months/NNS
./.
``/``
We/PRP
feel/VBP
we/PRP
are/VBP
doing/VBG
everything/NN
we/PRP
can/MD
,/,
''/''
an/DT
Occidental/NNP
spokesman/NN
says/VBZ
./.
Walt/NNP
Disney/NNP
Co./NNP
's/POS
Disneyland/NNP
in/IN
Anaheim/NNP
,/,
Calif./NNP
,/,
stocks/VBZ
rescue/NN
equipment/NN
,/,
medical/JJ
supplies/NNS
,/,
and/CC
enough/JJ
food/NN
and/CC
water/NN
to/TO
feed/VB
at/IN
least/JJS
10,000/CD
visitors/NNS
for/IN
as/RB
long/JJ
as/IN
five/CD
days/NNS
in/IN
the/DT
event/NN
that/IN
a/DT
calamity/NN
isolates/VBZ
the/DT
theme/NN
park/NN
./.
The/DT
park/NN
also/RB
has/VBZ
emergency/NN
centers/NNS
where/WRB
specially/RB
trained/VBN
employees/NNS
would/MD
go/VB
to/TO
coordinate/VB
evacuation/NN
and/CC
rescue/NN
plans/NNS
using/VBG
walkie-talkies/NNS
,/,
cellular/JJ
phones/NNS
,/,
and/CC
a/DT
public-address/JJ
system/NN
./.
The/DT
centers/NNS
are/VBP
complete/JJ
with/IN
maps/NNS
detailing/VBG
utility/NN
lines/NNS
beneath/IN
rides/NNS
and/CC
``/``
safe/JJ
havens/NNS
''/''
where/WRB
people/NNS
can/MD
be/VB
assembled/VBN
away/RB
from/IN
major/JJ
structures/NNS
./.
Vista/NNP
Chemical/NNP
Co./NNP
,/,
with/IN
three/CD
chemical/NN
plants/NNS
in/IN
and/CC
near/IN
Lake/NNP
Charles/NNP
,/,
La./NNP
,/,
``/``
prepares/VBZ
for/IN
every/DT
hurricane/NN
that/WDT
enters/VBZ
the/DT
Gulf/NNP
of/IN
Mexico/NNP
,/,
''/''
says/VBZ
Keith/NNP
L./NNP
Fogg/NNP
,/,
a/DT
company/NN
safety/NN
director/NN
./.
Hurricane/NNP
Hugo/NNP
,/,
an/DT
Atlantic/NNP
storm/NN
,/,
did/VBD
n't/RB
affect/VB
Vista/NNP
./.
But/CC
two/CD
other/JJ
major/JJ
storms/NNS
have/VBP
threatened/VBN
operations/NNS
so/RB
far/RB
this/DT
year/NN
,/,
most/RBS
recently/RB
Hurricane/NNP
Jerry/NNP
this/DT
week/NN
./.
Because/IN
hurricanes/NNS
can/MD
change/VB
course/NN
rapidly/RB
,/,
the/DT
company/NN
sends/VBZ
employees/NNS
home/NN
and/CC
shuts/NNS
down/VBP
operations/NNS
in/IN
stages/NNS
--/:
the/DT
closer/RBR
a/DT
storm/NN
gets/VBZ
,/,
the/DT
more/RBR
complete/JJ
the/DT
shutdown/NN
./.
The/DT
company/NN
does/VBZ
n't/RB
wait/VB
until/IN
the/DT
final/JJ
hours/NNS
to/TO
get/VB
ready/JJ
for/IN
hurricanes/NNS
./.
``/``
There/EX
are/VBP
just/RB
tons/NNS
of/IN
things/NNS
that/WDT
have/VBP
to/TO
be/VB
considered/VBN
,/,
''/''
Mr./NNP
Fogg/NNP
says/VBZ
./.
``/``
Empty/JJ
tank/NN
cars/NNS
will/MD
float/VB
away/RB
on/IN
you/PRP
if/IN
you/PRP
get/VBP
a/DT
big/JJ
tidal/JJ
surge/NN
./.
''/''
Still/RB
,/,
Vista/NNP
officials/NNS
realize/VBP
they/PRP
're/VBP
relatively/RB
fortunate/JJ
./.
``/``
With/IN
a/DT
hurricane/NN
you/PRP
know/VBP
it/PRP
's/VBZ
coming/VBG
./.
You/PRP
have/VBP
time/NN
to/TO
put/VB
precautionary/JJ
mechanisms/NNS
in/IN
place/NN
,/,
''/''
notes/VBZ
a/DT
Vista/NNP
spokeswoman/NN
./.
``/``
A/DT
situation/NN
like/IN
San/NNP
Francisco/NNP
is/VBZ
so/RB
frightening/JJ
because/IN
there/EX
's/VBZ
no/DT
warning/NN
./.
''/''
Former/JJ
Democratic/JJ
fund-raiser/NN
Thomas/NNP
M./NNP
Gaubert/NNP
,/,
whose/WP$
savings/NNS
and/CC
loan/NN
was/VBD
wrested/VBN
from/IN
his/PRP$
control/NN
by/IN
federal/JJ
thrift/NN
regulators/NNS
,/,
has/VBZ
been/VBN
granted/VBN
court/NN
permission/NN
to/TO
sue/VB
the/DT
regulators/NNS
./.
In/IN
a/DT
ruling/NN
by/IN
the/DT
Fifth/NNP
U.S./NNP
Circuit/NNP
Court/NNP
of/IN
Appeals/NNP
in/IN
New/NNP
Orleans/NNP
,/,
Mr./NNP
Gaubert/NNP
received/VBD
the/DT
go-ahead/NN
to/TO
pursue/VB
a/DT
claim/NN
against/IN
the/DT
Federal/NNP
Home/NNP
Loan/NNP
Bank/NNP
Board/NNP
and/CC
the/DT
Federal/NNP
Home/NNP
Loan/NNP
Bank/NNP
of/IN
Dallas/NNP
for/IN
losses/NNS
he/PRP
suffered/VBD
when/WRB
the/DT
Bank/NNP
Board/NNP
closed/VBD
the/DT
Independent/NNP
American/NNP
Savings/NNP
Association/NNP
of/IN
Irving/NNP
,/,
Texas/NNP
./.
Mr./NNP
Gaubert/NNP
,/,
who/WP
was/VBD
chairman/NN
and/CC
the/DT
majority/NN
stockholder/NN
of/IN
Independent/NNP
American/NNP
,/,
had/VBD
relinquished/VBN
his/PRP$
control/NN
in/IN
exchange/NN
for/IN
federal/JJ
regulators/NNS
'/POS
agreement/NN
to/TO
drop/VB
their/PRP$
inquiry/NN
into/IN
his/PRP$
activities/NNS
at/IN
another/DT
savings/NN
and/CC
loan/NN
./.
As/IN
part/NN
of/IN
the/DT
agreement/NN
,/,
Mr./NNP
Gaubert/NNP
contributed/VBD
real/JJ
estate/NN
valued/VBN
at/IN
$/$
25/CD
million/CD
to/TO
the/DT
assets/NNS
of/IN
Independent/NNP
American/NNP
./.
While/IN
under/IN
the/DT
control/NN
of/IN
federal/JJ
regulators/NNS
,/,
Independent/NNP
American/NNP
's/POS
net/JJ
worth/NN
dropped/VBN
from/IN
$/$
75/CD
million/CD
to/TO
a/DT
negative/JJ
$/$
400/CD
million/CD
,/,
wiping/VBG
out/RP
the/DT
value/NN
of/IN
Mr./NNP
Gaubert/NNP
's/POS
real/JJ
estate/NN
contribution/NN
and/CC
his/PRP$
stock/NN
in/IN
the/DT
institution/NN
./.
Mr./NNP
Gaubert/NNP
's/POS
suit/NN
to/TO
recover/VB
his/PRP$
damages/NNS
was/VBD
dismissed/VBN
last/JJ
year/NN
by/IN
U.S./NNP
District/NNP
Judge/NNP
Robert/NNP
Maloney/NNP
of/IN
Dallas/NNP
under/IN
the/DT
Federal/NNP
Tort/NNP
Claims/NNP
Act/NNP
,/,
which/WDT
offers/VBZ
broad/JJ
protection/NN
for/IN
actions/NNS
by/IN
federal/JJ
agencies/NNS
and/CC
employees/NNS
./.
Earlier/RBR
this/DT
week/NN
,/,
a/DT
Fifth/NNP
Circuit/NNP
appellate/JJ
panel/NN
upheld/VBD
Judge/NNP
Maloney/NNP
's/POS
dismissal/NN
of/IN
Mr./NNP
Gaubert/NNP
's/POS
claim/NN
as/IN
a/DT
shareholder/NN
but/CC
said/VBD
the/DT
judge/NN
should/MD
reconsider/VB
Mr./NNP
Gaubert/NNP
's/POS
claim/NN
for/IN
the/DT
loss/NN
of/IN
his/PRP$
property/NN
./.
``/``
It/PRP
may/MD
depend/VB
on/IN
whether/CC
there/EX
was/VBD
an/DT
express/JJ
or/CC
implied/VBN
promise/NN
.../:
that/IN
the/DT
federal/JJ
officials/NNS
would/MD
not/RB
negligently/RB
cause/VB
the/DT
deterioration/NN
''/''
of/IN
Independent/NNP
American/NNP
,/,
the/DT
court/NN
wrote/VBD
./.
Mr./NNP
Gaubert/NNP
's/POS
lawyer/NN
,/,
Abbe/NNP
David/NNP
Lowell/NNP
of/IN
Washington/NNP
,/,
D.C./NNP
,/,
says/VBZ
the/DT
impact/NN
of/IN
the/DT
ruling/NN
on/IN
other/JJ
cases/NNS
involving/VBG
thrift/NN
takeovers/NNS
will/MD
depend/VB
on/IN
the/DT
degree/NN
of/IN
similarity/NN
in/IN
the/DT
facts/NNS
./.
``/``
I/PRP
do/VBP
n't/RB
know/VB
if/IN
this/DT
will/MD
affect/VB
one/CD
institution/NN
or/CC
a/DT
hundred/CD
,/,
''/''
Mr./NNP
Lowell/NNP
says/VBZ
./.
``/``
It/PRP
does/VBZ
establish/VB
a/DT
very/RB
clear/JJ
precedent/NN
for/IN
suing/VBG
the/DT
FHLBB/NNP
where/WRB
there/EX
was/VBD
none/NN
before/RB
./.
''/''
MAITRE'D/NNP
CLAIMS/VBZ
in/IN
suit/NN
that/IN
restaurant/NN
fired/VBD
her/PRP
because/IN
she/PRP
was/VBD
pregnant/JJ
./.
In/IN
a/DT
suit/NN
filed/VBN
in/IN
state/NN
court/NN
in/IN
Manhattan/NNP
,/,
the/DT
American/NNP
Civil/NNP
Liberties/NNP
Union/NNP
is/VBZ
representing/VBG
the/DT
former/JJ
maitre/NNP
'd/NNP
of/IN
the/DT
chic/JJ
Odeon/NNP
restaurant/NN
./.
The/DT
suit/NN
,/,
which/WDT
seeks/VBZ
compensatory/JJ
and/CC
punitive/JJ
damages/NNS
of/IN
$/$
1/CD
million/CD
,/,
alleges/VBZ
that/IN
the/DT
firing/NN
of/IN
Marcia/NNP
Trees/NNP
Levine/NNP
violated/VBD
New/NNP
York/NNP
state/NN
's/POS
human-rights/JJ
law/NN
./.
Among/IN
other/JJ
things/NNS
,/,
the/DT
law/NN
prohibits/VBZ
discrimination/NN
on/IN
the/DT
basis/NN
of/IN
sex/NN
and/CC
pregnancy/NN
./.
The/DT
suit/NN
alleges/VBZ
that/IN
Ms./NNP
Levine/NNP
was/VBD
fired/VBN
after/IN
she/PRP
refused/VBD
to/TO
accept/VB
a/DT
lower/JJR
paying/VBG
,/,
less/RBR
visible/JJ
job/NN
upon/IN
reaching/VBG
her/PRP
sixth/JJ
month/NN
of/IN
pregnancy/NN
./.
Ms./NNP
Levine/NNP
told/VBD
her/PRP$
employer/NN
that/IN
she/PRP
was/VBD
pregnant/JJ
in/IN
February/NNP
;/:
a/DT
month/NN
later/RBR
,/,
the/DT
suit/NN
says/VBZ
,/,
the/DT
restaurant/NN
manager/NN
told/VBD
Ms./NNP
Levine/NNP
that/IN
she/PRP
would/MD
be/VB
demoted/VBN
to/TO
his/PRP$
assistant/NN
because/IN
he/PRP
felt/VBD
customers/NNS
would/MD
be/VB
uncomfortable/JJ
with/IN
a/DT
pregnant/JJ
maitre/NNP
'd/NNP
./.
Kary/NNP
Moss/NNP
,/,
an/DT
attorney/NN
with/IN
the/DT
ACLU/NNP
's/POS
Women/NNS
's/POS
Rights/NNP
Project/NNP
,/,
said/VBD
,/,
``/``
They/PRP
wanted/VBD
a/DT
svelte-looking/JJ
woman/NN
,/,
and/CC
a/DT
pregnant/JJ
woman/NN
is/VBZ
not/RB
svelte/JJ
./.
They/PRP
told/VBD
her/PRP
,/,
`/``
We/PRP
do/VBP
n't/RB
hire/VB
fat/JJ
people/NNS
and/CC
we/PRP
do/VBP
n't/RB
hire/VB
cripples/NNS
./.
And/CC
pregnant/JJ
women/NNS
are/VBP
fat/JJ
./.
'/''
''/''
Ms./NNP
Moss/NNP
said/VBD
Ms./NNP
Levine/NNP
secretly/RB
taped/VBD
many/JJ
conversations/NNS
with/IN
her/PRP$
bosses/NNS
at/IN
the/DT
Odeon/NNP
in/IN
which/WDT
they/PRP
told/VBD
her/PRP
she/PRP
was/VBD
being/VBG
fired/VBD
as/IN
maitre/NNP
'd/NNP
because/IN
she/PRP
was/VBD
pregnant/JJ
./.
Paul/NNP
H./NNP
Aloe/NNP
,/,
an/DT
attorney/NN
for/IN
Odeon/NNP
owner/NN
Keith/NNP
McNally/NNP
,/,
denied/VBD
the/DT
allegations/NNS
./.
He/PRP
said/VBD
Ms./NNP
Levine/NNP
had/VBD
never/RB
been/VBN
fired/VBN
,/,
although/IN
she/PRP
had/VBD
stopped/VBN
working/VBG
at/IN
the/DT
restaurant/NN
./.
``/``
The/DT
Odeon/NNP
made/VBD
a/DT
written/VBN
offer/NN
to/TO
Marcia/NNP
Levine/NNP
on/IN
July/NNP
10/CD
to/TO
return/VB
to/TO
work/VB
as/IN
the/DT
maitre/NNP
'd/NNP
,/,
at/IN
the/DT
same/JJ
pay/NN
,/,
same/JJ
hours/NNS
and/CC
with/IN
back/JJ
pay/NN
accrued/VBN
,/,
''/''
he/PRP
said/VBD
./.
Mr./NNP
Aloe/NNP
said/VBD
the/DT
Odeon/NNP
``/``
has/VBZ
no/DT
policy/NN
against/IN
hiring/VBG
pregnant/JJ
people/NNS
./.
''/''
LAWYERS/NNP
IN/IN
Texas/NNP
's/POS
biggest/JJS
bank-fraud/JJ
case/NN
want/VBP
out/RP
in/IN
face/NN
of/IN
retrial/NN
./.
Lawyers/NNS
representing/VBG
five/CD
of/IN
the/DT
seven/CD
defendants/NNS
in/IN
the/DT
case/NN
say/VBP
their/PRP$
clients/NNS
can/MD
no/RB
longer/RBR
afford/VB
their/PRP$
services/NNS
./.
The/DT
trial/NN
of/IN
the/DT
case/NN
lasted/VBD
seven/CD
months/NNS
and/CC
ended/VBD
in/IN
September/NNP
with/IN
a/DT
hung/VBN
jury/NN
./.
The/DT
defendants/NNS
were/VBD
indicted/VBN
two/CD
years/NNS
ago/RB
on/IN
charges/NNS
that/IN
they/PRP
conspired/VBD
to/TO
defraud/VB
five/CD
thrifts/NNS
of/IN
more/JJR
than/IN
$/$
130/CD
million/CD
through/IN
a/DT
complicated/VBN
scheme/NN
to/TO
inflate/VB
the/DT
price/NN
of/IN
land/NN
and/CC
condominium/NN
construction/NN
along/IN
Interstate/NNP
30/CD
,/,
east/JJ
of/IN
Dallas/NNP
./.
The/DT
defense/NN
lawyers/NNS
,/,
three/CD
of/IN
whom/WP
are/VBP
solo/NN
practitioners/NNS
,/,
say/VBP
they/PRP
ca/MD
n't/RB
afford/VB
to/TO
put/VB
their/PRP$
law/NN
practices/NNS
on/IN
hold/NN
for/IN
another/DT
seven-month/JJ
trial/NN
./.
Some/DT
of/IN
the/DT
lawyers/NNS
say/VBP
they/PRP
would/MD
continue/VB
to/TO
represent/VB
their/PRP$
clients/NNS
if/IN
the/DT
government/NN
pays/VBZ
their/PRP$
tab/NN
as/IN
court-appointed/JJ
lawyers/NNS
./.
Assistant/NNP
U.S./NNP
Attorney/NNP
Terry/NNP
Hart/NNP
of/IN
Dallas/NNP
says/VBZ
the/DT
government/NN
will/MD
oppose/VB
any/DT
efforts/NNS
to/TO
bring/VB
in/IN
a/DT
new/JJ
defense/NN
team/NN
because/IN
it/PRP
would/MD
delay/VB
a/DT
retrial/NN
./.
FEDERAL/JJ
JUDGE/NN
ALCEE/NNP
HASTINGS/NNP
of/IN
Florida/NNP
,/,
facing/VBG
impeachment/NN
,/,
received/VBD
an/DT
unanticipated/JJ
boost/NN
yesterday/NN
./.
Sen./NNP
Arlen/NNP
Specter/NNP
R./NNP
,/,
Pa/NNP
./.
acquittal/NN
of/IN
the/DT
judge/NN
in/IN
a/DT
brief/NN
circulated/VBN
to/TO
his/PRP$
Senate/NNP
colleagues/NNS
during/IN
closed-door/JJ
deliberations/NNS
./.
Among/IN
other/JJ
things/NNS
,/,
the/DT
brief/NN
cited/VBD
insufficient/JJ
evidence/NN
./.
Sen./NNP
Specter/NNP
was/VBD
vice/NN
chairman/NN
of/IN
the/DT
impeachment/NN
trial/NN
committee/NN
that/WDT
heard/VBD
evidence/NN
in/IN
the/DT
Hastings/NNP
case/NN
last/JJ
summer/NN
./.
A/DT
former/JJ
prosecutor/NN
and/CC
member/NN
of/IN
the/DT
Senate/NNP
Judiciary/NNP
Committee/NNP
,/,
Sen./NNP
Specter/NNP
is/VBZ
expected/VBN
to/TO
exercise/VB
influence/NN
when/WRB
the/DT
Senate/NNP
votes/VBZ
on/IN
the/DT
impeachment/NN
today/NN
./.
RICHMOND/NNP
RESIGNATIONS/NNS
:/:
Six/CD
partners/NNS
in/IN
the/DT
Richmond/NNP
,/,
Va./NNP
,/,
firm/NN
of/IN
Browder/NNP
,/,
Russell/NNP
,/,
Morris/NNP
&/CC
Butcher/NNP
announced/VBD
they/PRP
are/VBP
resigning/VBG
./.
Five/CD
of/IN
the/DT
partners/NNS
--/:
James/NNP
W./NNP
Morris/NNP
,/,
Philip/NNP
B./NNP
Morris/NNP
,/,
Robert/NNP
M./NNP
White/NNP
,/,
Ann/NNP
Adams/NNP
Webster/NNP
and/CC
Jacqueline/NNP
G./NNP
Epps/NNP
--/:
are/VBP
opening/VBG
a/DT
boutique/NN
in/IN
Richmond/NNP
to/TO
concentrate/VB
on/IN
corporate/JJ
defense/NN
litigation/NN
,/,
particularly/RB
in/IN
product/NN
liability/NN
cases/NNS
./.
The/DT
sixth/JJ
partner/NN
,/,
John/NNP
H./NNP
OBrion/NNP
,/,
Jr./NNP
,/,
is/VBZ
joining/VBG
Cowan/NNP
&/CC
Owen/NNP
,/,
a/DT
smaller/JJR
firm/NN
outside/IN
Richmond/NNP
./.
LAW/NNP
FIRM/NNP
NOTES/NNS
:/:
Nixon/NNP
,/,
Hargrave/NNP
,/,
Devans/NNP
&/CC
Doyle/NNP
,/,
based/VBN
in/IN
Rochester/NNP
,/,
N.Y./NNP
,/,
has/VBZ
opened/VBN
an/DT
office/NN
in/IN
Buffalo/NNP
,/,
N.Y/NNP
.../:
./.
Mayer/NNP
,/,
Brown/NNP
&/CC
Platt/NNP
,/,
Chicago/NNP
,/,
added/VBD
two/CD
partners/NNS
to/TO
its/PRP$
Houston/NNP
office/NN
,/,
Eddy/NNP
J./NNP
Roger/NNP
Jr./NNP
,/,
and/CC
Jeff/NNP
C./NNP
Dodd/NNP
.../:
./.
Copyright/NN
specialist/NN
Neil/NNP
Boorstyn/NNP
,/,
who/WP
writes/VBZ
the/DT
monthly/JJ
Copyright/NNP
Law/NNP
Journal/NNP
newsletter/NN
,/,
is/VBZ
joining/VBG
McCutchen/NNP
,/,
Doyle/NNP
,/,
Brown/NNP
&/CC
Enersen/NNP
./.
New/NNP
York/NNP
Times/NNP
Co./NNP
's/POS
third-quarter/JJ
earnings/NNS
report/NN
is/VBZ
reinforcing/VBG
analysts/NNS
'/POS
belief/NN
that/IN
newspaper/NN
publishers/NNS
will/MD
be/VB
facing/VBG
continued/VBN
poor/JJ
earnings/NNS
comparisons/NNS
through/IN
1990/CD
./.
The/DT
publisher/NN
was/VBD
able/JJ
to/TO
register/VB
soaring/VBG
quarter/NN
net/JJ
income/NN
because/IN
of/IN
a/DT
onetime/JJ
gain/NN
on/IN
the/DT
sale/NN
of/IN
its/PRP$
cable-TV/NN
system/NN
./.
However/RB
,/,
operating/NN
profit/NN
fell/VBD
35/CD
%/NN
to/TO
$/$
16.4/CD
million/CD
./.
The/DT
decline/NN
reflected/VBD
the/DT
expense/NN
of/IN
buying/VBG
three/CD
magazines/NNS
,/,
lower/JJR
earnings/NNS
from/IN
the/DT
forest-products/JJ
group/NN
,/,
and/CC
what/WP
is/VBZ
proving/VBG
to/TO
be/VB
a/DT
nagging/JJ
major/JJ
problem/NN
,/,
continued/VBN
declines/NNS
in/IN
advertising/NN
linage/NN
at/IN
the/DT
New/NNP
York/NNP
Times/NNP
,/,
the/DT
company/NN
's/POS
flagship/NN
daily/JJ
newspaper/NN
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
American/NNP
Stock/NNP
Exchange/NNP
,/,
New/NNP
York/NNP
Times/NNP
closed/VBD
at/IN
$/$
28.125/CD
a/DT
share/NN
,/,
down/RB
37.5/CD
cents/NNS
./.
Analysts/NNS
said/VBD
the/DT
company/NN
's/POS
troubles/NNS
mirror/VBP
those/DT
of/IN
the/DT
industry/NN
./.
Retail/JJ
advertising/NN
,/,
which/WDT
often/RB
represents/VBZ
half/NN
of/IN
the/DT
advertising/NN
volume/NN
at/IN
most/JJS
daily/JJ
newspapers/NNS
,/,
largely/RB
is/VBZ
n't/RB
rebounding/VBG
in/IN
the/DT
second/JJ
half/NN
from/IN
extended/VBN
doldrums/NNS
as/IN
expected/VBN
./.
At/IN
the/DT
same/JJ
time/NN
,/,
newspapers/NNS
are/VBP
bedeviled/VBN
by/IN
lagging/VBG
national/JJ
advertising/NN
,/,
especially/RB
in/IN
its/PRP$
financial/JJ
component/NN
./.
Dow/NNP
Jones/NNP
&/CC
Co./NNP
recently/RB
reported/VBD
net/JJ
fell/VBD
9.9/CD
%/NN
,/,
a/DT
reflection/NN
,/,
in/IN
part/NN
,/,
of/IN
continued/VBN
softness/NN
in/IN
financial/JJ
advertising/NN
at/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
and/CC
Barron/NNP
's/POS
magazine/NN
./.
``/``
We/PRP
expect/VBP
next/JJ
year/NN
to/TO
be/VB
a/DT
fairly/RB
soft/JJ
year/NN
in/IN
newspaper-industry/JJ
advertising/NN
,/,
''/''
said/VBD
John/NNP
Morton/NNP
,/,
an/DT
analyst/NN
for/IN
Lynch/NNP
,/,
Jones/NNP
&/CC
Ryan/NNP
./.
``/``
Next/JJ
year/NN
,/,
earnings/NNS
will/MD
hold/VB
steady/JJ
,/,
but/CC
we/PRP
just/RB
do/VBP
n't/RB
see/VB
a/DT
big/JJ
turnaround/NN
in/IN
the/DT
trend/NN
in/IN
advertising/NN
./.
''/''
John/NNP
S./NNP
Reidy/NNP
,/,
an/DT
analyst/NN
for/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
,/,
said/VBD
,/,
``/``
The/DT
Times/NNP
faces/VBZ
the/DT
same/JJ
problem/NN
of/IN
other/JJ
publishers/NNS
:/:
linage/NN
is/VBZ
down/RB
./.
It/PRP
will/MD
be/VB
hard/JJ
to/TO
do/VB
handstands/NNS
until/IN
real/JJ
linage/NN
starts/VBZ
heading/VBG
back/RB
up/RB
./.
''/''
In/IN
the/DT
quarterly/JJ
report/NN
,/,
Arthur/NNP
Ochs/NNP
Sulzberger/NNP
,/,
New/NNP
York/NNP
Times/NNP
Co./NNP
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
,/,
said/VBD
negative/JJ
factors/NNS
affecting/VBG
third-quarter/JJ
earnings/NNS
will/MD
continue/VB
./.
Analysts/NNS
agreed/VBD
with/IN
company/NN
expectations/NNS
that/IN
operating/VBG
profit/NN
will/MD
be/VB
down/RB
this/DT
year/NN
and/CC
in/IN
1990/CD
./.
Mr./NNP
Sulzberger/NNP
said/VBD
the/DT
scheduled/VBN
opening/NN
of/IN
a/DT
new/JJ
color-printing/JJ
plant/NN
in/IN
Edison/NNP
,/,
N.J./NNP
,/,
in/IN
1990/CD
would/MD
involve/VB
heavy/JJ
startup/NN
and/CC
depreciation/NN
costs/NNS
./.
``/``
With/IN
the/DT
Edison/NNP
plant/NN
coming/VBG
on/IN
line/NN
next/IN
summer/NN
,/,
the/DT
Times/NNP
is/VBZ
facing/VBG
some/DT
tough/JJ
earnings/NNS
comparison/NN
in/IN
the/DT
future/NN
,/,
''/''
said/VBD
Peter/NNP
Appert/NNP
,/,
an/DT
analyst/NN
with/IN
C.J./NNP
Lawrence/NNP
,/,
Morgan/NNP
Grenfell/NNP
./.
``/``
But/CC
many/JJ
newspapers/NNS
are/VBP
facing/VBG
similar/JJ
comparisons/NNS
./.
''/''
The/DT
sale/NN
of/IN
the/DT
company/NN
's/POS
cable/NN
franchise/NN
brought/VBD
an/DT
after-tax/JJ
gain/NN
of/IN
$/$
193.3/CD
million/CD
,/,
part/NN
of/IN
which/WDT
will/MD
be/VB
used/VBN
to/TO
reduce/VB
debt/NN
./.
The/DT
company/NN
also/RB
has/VBZ
a/DT
stock-repurchase/JJ
plan/NN
./.
Analysts/NNS
said/VBD
they/PRP
were/VBD
impressed/VBN
by/IN
the/DT
performance/NN
of/IN
the/DT
company/NN
's/POS
newspaper/NN
group/NN
,/,
which/WDT
consists/VBZ
of/IN
the/DT
Times/NNP
,/,
35/CD
regional/JJ
newspapers/NNS
and/CC
a/DT
one-third/JJ
interest/NN
in/IN
the/DT
International/NNP
Herald/NNP
Tribune/NNP
;/:
group/NN
operating/NN
profit/NN
for/IN
the/DT
quarter/NN
increased/VBD
slightly/RB
to/TO
$/$
34.9/CD
million/CD
from/IN
$/$
34.5/CD
million/CD
on/IN
flat/JJ
revenue/NN
./.
Drexel/NNP
Burnham/NNP
's/POS
Mr./NNP
Reidy/NNP
pointed/VBD
out/RP
that/IN
``/``
profits/NNS
held/VBD
up/RP
in/IN
a/DT
tough/JJ
revenue/NN
environment/NN
./.
That/DT
's/VBZ
a/DT
good/JJ
sign/NN
when/WRB
profits/NNS
are/VBP
stable/JJ
during/IN
a/DT
time/NN
revenue/NN
is/VBZ
in/IN
the/DT
trough/NN
./.
''/''
Investors/NNS
celebrated/VBD
the/DT
second/JJ
anniversary/NN
of/IN
Black/NNP
Monday/NNP
with/IN
a/DT
buying/NN
spree/NN
in/IN
both/DT
stocks/NNS
and/CC
bonds/NNS
./.
But/CC
the/DT
dollar/NN
was/VBD
mixed/VBN
./.
Stock/NN
and/CC
bond/NN
investors/NNS
were/VBD
cheered/VBN
by/IN
last/JJ
month/NN
's/POS
encouragingly/RB
low/JJ
inflation/NN
rate/NN
./.
This/DT
news/NN
raised/VBD
hopes/NNS
for/IN
further/JJ
interest-rate/JJ
cuts/NNS
./.
Treasury-bond/JJ
prices/NNS
immediately/RB
rallied/VBD
,/,
setting/VBG
the/DT
stock/NN
market/NN
rolling/VBG
from/IN
the/DT
opening/VBG
bell/NN
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
,/,
up/RB
about/RB
60/CD
points/NNS
in/IN
mid-afternoon/NN
,/,
finished/VBD
with/IN
a/DT
gain/NN
of/IN
39.55/CD
points/NNS
,/,
to/TO
2683.20/CD
./.
That/WDT
brought/VBD
the/DT
average/NN
's/POS
cumulative/JJ
gain/NN
this/DT
week/NN
to/TO
about/RB
114/CD
points/NNS
./.
Since/IN
the/DT
1987/CD
crash/NN
,/,
the/DT
industrials/NNS
have/VBP
soared/VBN
more/RBR
than/IN
54/CD
%/NN
,/,
and/CC
the/DT
widely/RB
watched/VBN
market/NN
barometer/NN
is/VBZ
about/RB
4/CD
%/NN
below/IN
its/PRP$
record/NN
high/NN
set/VBN
earlier/RBR
this/DT
month/NN
./.
The/DT
stock-market/NN
rally/NN
was/VBD
led/VBN
by/IN
blue-chip/JJ
issues/NNS
,/,
but/CC
,/,
unlike/IN
Monday/NNP
's/POS
rebound/NN
,/,
was/VBD
broadly/RB
based/VBN
./.
Indeed/RB
,/,
over-the-counter/JJ
stocks/NNS
,/,
led/VBN
by/IN
technology/NN
issues/NNS
,/,
outleaped/VBD
the/DT
industrial/JJ
average/NN
./.
The/DT
Nasdaq/NNP
Composite/NNP
Index/NNP
soared/VBD
7.52/CD
,/,
or/CC
1.6/CD
%/NN
,/,
to/TO
470.80/CD
,/,
its/PRP$
highest/JJS
one-day/JJ
jump/NN
in/IN
points/NNS
this/DT
year/NN
./.
Many/JJ
takeover-related/JJ
stocks/NNS
rose/VBD
after/IN
news/NN
that/IN
a/DT
group/NN
obtained/VBD
financing/VBG
commitments/NNS
for/IN
the/DT
proposed/VBN
buy-out/NN
of/IN
American/NNP
Medical/NNP
International/NNP
Inc/NNP
./.
Among/IN
the/DT
biggest/JJS
winners/NNS
were/VBD
brokerage-house/NN
stocks/NNS
,/,
responding/VBG
to/TO
heavy/JJ
trading/NN
volume/NN
./.
The/DT
government/NN
said/VBD
consumer/NN
prices/NNS
rose/VBD
only/RB
0.2/CD
%/NN
last/JJ
month/NN
./.
Economists/NNS
expected/VBD
twice/RB
as/RB
large/JJ
an/DT
increase/NN
./.
That/DT
news/NN
,/,
plus/IN
recent/JJ
signs/NNS
of/IN
economic/JJ
sluggishness/NN
,/,
greatly/RB
increases/VBZ
pressure/NN
on/IN
the/DT
Federal/NNP
Reserve/NNP
to/TO
ease/VB
credit/NN
further/RBR
,/,
which/WDT
in/IN
turn/NN
would/MD
be/VB
good/JJ
news/NN
for/IN
stocks/NNS
,/,
investment/NN
managers/NNS
say/VBP
./.
``/``
I/PRP
see/VBP
a/DT
lot/NN
of/IN
evidence/NN
indicating/VBG
a/DT
slower/JJR
economy/NN
,/,
and/CC
that/DT
means/VBZ
my/PRP$
interest-rate/JJ
outlook/NN
has/VBZ
a/DT
downward/JJ
tilt/NN
,/,
''/''
said/VBD
Garnett/NNP
L./NNP
Keith/NNP
Jr./NNP
,/,
vice/NN
chairman/NN
of/IN
Prudential/NNP
Insurance/NNP
Co./NNP
of/IN
America/NNP
,/,
one/CD
of/IN
the/DT
nation/NN
's/POS
largest/JJS
institutional/JJ
investors/NNS
./.
Fed/NNP
officials/NNS
probably/RB
wo/MD
n't/RB
drive/VB
down/RB
rates/NNS
immediately/RB
,/,
Mr./NNP
Keith/NNP
said/VBD
./.
Despite/IN
the/DT
inflation/NN
news/NN
,/,
several/JJ
Fed/NNP
officials/NNS
still/RB
fear/VBP
consumer-price/JJ
pressures/NNS
will/MD
intensify/VB
because/IN
they/PRP
insist/VBP
the/DT
economy/NN
is/VBZ
stronger/JJR
than/IN
generally/RB
believed/VBN
./.
But/CC
Wall/NNP
Street/NNP
analysts/NNS
expect/VBP
further/JJ
signs/NNS
of/IN
economic/JJ
weakness/NN
in/IN
government/NN
reports/NNS
during/IN
the/DT
next/JJ
few/JJ
weeks/NNS
./.
If/IN
so/RB
,/,
that/DT
will/MD
cinch/VB
the/DT
case/NN
for/IN
another/DT
shot/NN
of/IN
credit-easing/NN
within/IN
a/DT
month/NN
or/CC
so/RB
./.
That/DT
,/,
in/IN
turn/NN
,/,
is/VBZ
expected/VBN
to/TO
persuade/VB
banks/NNS
to/TO
cut/VB
their/PRP$
prime/JJ
lending/NN
rate/NN
,/,
a/DT
benchmark/NN
rate/NN
on/IN
many/JJ
corporate/JJ
and/CC
consumer/NN
loans/NNS
,/,
by/IN
half/PDT
a/DT
percentage/NN
point/NN
,/,
to/TO
10/CD
%/NN
./.
``/``
We/PRP
're/VBP
not/RB
out/IN
of/IN
the/DT
woods/NNS
yet/RB
by/IN
any/DT
means/NNS
,/,
''/''
said/VBD
George/NNP
R./NNP
Mateyo/NNP
,/,
president/NN
and/CC
chief/JJ
executive/NN
of/IN
Carnegie/NNP
Capital/NNP
Management/NNP
Co./NNP
,/,
Cleveland/NNP
./.
But/CC
the/DT
economy/NN
``/``
is/VBZ
slowing/VBG
enough/RB
to/TO
give/VB
the/DT
Federal/NNP
Reserve/NNP
leeway/NN
to/TO
reduce/VB
interest/NN
rates/NNS
./.
''/''
But/CC
many/JJ
individual/JJ
investors/NNS
are/VBP
leery/JJ
about/IN
stocks/NNS
because/IN
of/IN
fresh/JJ
signs/NNS
of/IN
fragility/NN
in/IN
the/DT
huge/JJ
junk-bond/NN
market/NN
./.
Investors/NNS
also/RB
are/VBP
anxious/JJ
about/IN
today/NN
's/POS
``/``
witching/NN
hour/NN
,/,
''/''
the/DT
monthly/JJ
expiration/NN
of/IN
stock-index/JJ
futures/NNS
and/CC
options/NNS
,/,
and/CC
options/NNS
on/IN
individual/JJ
stocks/NNS
./.
This/DT
phenomenon/NN
often/RB
makes/VBZ
stock/NN
prices/NNS
swing/VB
wildly/RB
at/IN
the/DT
end/NN
of/IN
the/DT
trading/NN
session/NN
./.
In/IN
major/JJ
market/NN
activity/NN
:/:
Stock/NNP
prices/NNS
surged/VBD
in/IN
heavy/JJ
trading/NN
./.
Volume/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
rose/VBD
to/TO
198.1/CD
million/CD
shares/NNS
from/IN
166.9/CD
million/CD
Wednesday/NNP
./.
Gaining/NNP
Big/NNP
Board/NNP
issues/NNS
outnumbered/VBD
decliners/NNS
by/IN
1,235/CD
to/TO
355/CD
./.
The/DT
dollar/NN
was/VBD
mixed/JJ
./.
In/IN
New/NNP
York/NNP
late/JJ
yesterday/NN
,/,
it/PRP
was/VBD
at/IN
141.70/CD
yen/NN
,/,
up/IN
from/IN
141.45/CD
yen/NN
late/JJ
Wednesday/NNP
./.
But/CC
it/PRP
fell/VBD
to/TO
1.8470/CD
marks/NNS
from/IN
1.8485/CD
./.
Tuesday/NNP
's/POS
rout/NN
of/IN
a/DT
GOP/NNP
congressional/JJ
hopeful/NN
in/IN
a/DT
Mississippi/NNP
district/NN
that/DT
has/VBZ
n't/RB
backed/VBD
a/DT
Democratic/JJ
presidential/JJ
candidate/NN
since/IN
Adlai/NNP
Stevenson/NNP
is/VBZ
another/DT
reminder/NN
that/IN
,/,
at/IN
least/JJS
at/IN
the/DT
federal/JJ
level/NN
,/,
political/JJ
``/``
ticket/NN
splitting/NN
''/''
has/VBZ
been/VBN
on/IN
the/DT
rise/NN
over/IN
the/DT
past/JJ
half/JJ
century/NN
./.
In/IN
only/RB
one/CD
presidential/JJ
election/NN
year/NN
prior/RB
to/TO
1948/CD
did/VBD
more/JJR
than/IN
20/CD
%/NN
of/IN
the/DT
nation/NN
's/POS
congressional/JJ
districts/NNS
choose/VB
a/DT
different/JJ
party/NN
's/POS
candidate/NN
for/IN
the/DT
White/NNP
House/NNP
than/IN
for/IN
the/DT
House/NNP
of/IN
Representatives/NNP
./.
Now/RB
that/DT
percentage/NN
routinely/RB
equals/VBZ
a/DT
third/JJ
and/CC
twice/RB
has/VBZ
been/VBN
above/IN
40/CD
%/NN
./.
As/IN
we/PRP
know/VBP
,/,
voters/NNS
tend/VBP
to/TO
favor/VB
Republicans/NNS
more/RBR
in/IN
races/NNS
for/IN
president/NN
than/IN
in/IN
those/DT
for/IN
Congress/NNP
./.
In/IN
every/DT
presidential/JJ
election/NN
over/IN
the/DT
past/JJ
half/JJ
century/NN
,/,
except/IN
for/IN
the/DT
Goldwater/NNP
presidential/JJ
candidacy/NN
,/,
the/DT
GOP/NNP
has/VBZ
captured/VBN
a/DT
greater/JJR
percentage/NN
of/IN
the/DT
major-party/JJ
popular/JJ
vote/NN
for/IN
president/NN
than/IN
it/PRP
has/VBZ
of/IN
congressional/JJ
seats/NNS
or/CC
the/DT
popular/JJ
vote/NN
for/IN
Congress/NNP
./.
Prior/RB
to/TO
1932/CD
,/,
the/DT
pattern/NN
was/VBD
nearly/RB
the/DT
opposite/NN
./.
What/WP
accounts/VBZ
for/IN
the/DT
results/NNS
of/IN
recent/JJ
decades/NNS
?/.
A/DT
simple/JJ
economic/JJ
theory/NN
may/MD
provide/VB
at/IN
least/JJS
a/DT
partial/JJ
explanation/NN
for/IN
the/DT
split/JJ
personality/NN
displayed/VBN
by/IN
Americans/NNS
in/IN
the/DT
voting/NN
booth/NN
./.
The/DT
theory/NN
relies/VBZ
on/IN
three/CD
assumptions/NNS
:/:
1/LS
Voters/NNS
can/MD
``/``
buy/VB
''/''
one/CD
of/IN
two/CD
brands/NNS
when/WRB
they/PRP
select/VBP
their/PRP$
political/JJ
agents/NNS
--/:
a/DT
Republican/JJ
brand/NN
that/WDT
believes/VBZ
in/IN
the/DT
minimalist/JJ
state/NN
and/CC
in/IN
the/DT
virtues/NNS
of/IN
private/JJ
markets/NNS
over/IN
the/DT
vices/NNS
of/IN
public/JJ
action/NN
,/,
and/CC
a/DT
Democratic/JJ
brand/NN
that/WDT
believes/VBZ
in/IN
big/JJ
government/NN
and/CC
in/IN
public/JJ
intervention/NN
to/TO
remedy/VB
the/DT
excesses/NNS
attendant/JJ
to/TO
the/DT
pursuit/NN
of/IN
private/JJ
interest/NN
./.
2/LS
Congressional/JJ
representatives/NNS
have/VBP
two/CD
basic/JJ
responsibilities/NNS
while/IN
voting/VBG
in/IN
office/NN
--/:
dealing/VBG
with/IN
national/JJ
issues/NNS
programmatic/JJ
actions/NNS
such/JJ
as/IN
casting/VBG
roll/NN
call/NN
votes/NNS
on/IN
legislation/NN
that/WDT
imposes/VBZ
costs/NNS
and\/or/CC
confers/VBZ
benefits/NNS
on/IN
the/DT
population/NN
at/IN
large/JJ
local/JJ
issues/NNS
constituency/NN
service/NN
and/CC
pork/NN
barrel/NN
3/LS
Republican/JJ
congressional/JJ
representatives/NNS
,/,
because/IN
of/IN
their/PRP$
belief/NN
in/IN
a/DT
minimalist/JJ
state/NN
,/,
are/VBP
less/RBR
willing/JJ
to/TO
engage/VB
in/IN
local/JJ
benefit-seeking/NN
than/IN
are/VBP
Democratic/JJ
members/NNS
of/IN
Congress/NNP
./.
If/IN
these/DT
assumptions/NNS
hold/VBP
,/,
voters/NNS
in/IN
races/NNS
for/IN
Congress/NNP
face/VBP
what/WP
in/IN
economic/JJ
theory/NN
is/VBZ
called/VBN
a/DT
prisoner/NN
's/POS
dilemma/NN
and/CC
have/VBP
an/DT
incentive/NN
,/,
at/IN
the/DT
margin/NN
,/,
to/TO
lean/VB
Democratic/JJ
./.
If/IN
they/PRP
put/VBP
a/DT
Republican/NNP
into/IN
office/NN
,/,
not/RB
only/RB
will/MD
they/PRP
acquire/VB
less/JJR
in/IN
terms/NNS
of/IN
local/JJ
benefits/NNS
but/CC
their/PRP$
selected/VBN
legislator/NN
will/MD
be/VB
relatively/RB
powerless/JJ
to/TO
prevent/VB
other/JJ
legislators/NNS
from/IN
``/``
bringing/VBG
home/NN
the/DT
bacon/NN
''/''
to/TO
their/PRP$
respective/JJ
constituencies/NNS
./.
Each/DT
legislator/NN
,/,
after/IN
all/DT
,/,
is/VBZ
only/RB
one/CD
out/IN
of/IN
535/CD
when/WRB
it/PRP
comes/VBZ
to/TO
national/JJ
policy/NN
making/NN
./.
In/IN
races/NNS
for/IN
the/DT
White/NNP
House/NNP
,/,
a/DT
voter/NN
's/POS
incentive/NN
,/,
at/IN
the/DT
margin/NN
,/,
is/VBZ
to/TO
lean/VB
Republican/NNP
./.
Although/IN
a/DT
GOP/NNP
president/NN
may/MD
limit/VB
local/JJ
benefits/NNS
to/TO
the/DT
voter/NN
's/POS
particular/JJ
district\/state/NN
,/,
such/JJ
a/DT
president/NN
is/VBZ
also/RB
likely/JJ
to/TO
be/VB
more/RBR
effective/JJ
at/IN
preventing/VBG
other/JJ
districts\/states/NNS
and/CC
their/PRP$
legislators/NNS
from/IN
bringing/VBG
home/NN
the/DT
local/JJ
benefits/NNS
./.
The/DT
individual/JJ
voter/NN
's/VBZ
standing/NN
consequently/RB
will/MD
be/VB
enhanced/VBN
through/IN
lower/JJR
taxes/NNS
./.
While/IN
this/DT
theory/NN
is/VBZ
exceedingly/RB
simple/JJ
,/,
it/PRP
appears/VBZ
to/TO
explain/VB
several/JJ
things/NNS
./.
First/JJ
,/,
why/WRB
ticket/NN
splitting/NN
has/VBZ
increased/VBN
and/CC
taken/VBN
the/DT
peculiar/JJ
pattern/NN
that/IN
it/PRP
has/VBZ
over/IN
the/DT
past/JJ
half/JJ
century/NN
:/:
Prior/RB
to/TO
the/DT
election/NN
of/IN
Franklin/NNP
Roosevelt/NNP
as/IN
president/NN
and/CC
the/DT
advent/NN
of/IN
the/DT
New/NNP
Deal/NNP
,/,
government/NN
occupied/VBD
a/DT
much/RB
smaller/JJR
role/NN
in/IN
society/NN
and/CC
the/DT
prisoner/NN
's/POS
dilemma/NN
problem/NN
confronting/VBG
voters/NNS
in/IN
races/NNS
for/IN
Congress/NNP
was/VBD
considerably/RB
less/RBR
severe/JJ
./.
Second/JJ
,/,
it/PRP
explains/VBZ
why/WRB
voters/NNS
hold/VBP
Congress/NNP
in/IN
disdain/NN
but/CC
generally/RB
love/VBP
their/PRP$
own/JJ
congressional/JJ
representatives/NNS
:/:
Any/DT
individual/JJ
legislator/NN
's/POS
constituents/NNS
appreciate/VBP
the/DT
specific/JJ
benefits/NNS
that/IN
the/DT
legislator/NN
wins/VBZ
for/IN
them/PRP
but/CC
not/RB
the/DT
overall/JJ
cost/NN
associated/VBN
with/IN
every/DT
other/JJ
legislator/NN
doing/VBG
likewise/RB
for/IN
his/PRP$
own/JJ
constituency/NN
./.
Third/JJ
,/,
the/DT
theory/NN
suggests/VBZ
why/WRB
legislators/NNS
who/WP
pay/VBP
too/RB
much/JJ
attention/NN
to/TO
national/JJ
policy/NN
making/NN
relative/JJ
to/TO
local/JJ
benefit-seeking/NN
have/VBP
lower/JJR
security/NN
in/IN
office/NN
./.
For/IN
example/NN
,/,
first-term/JJ
members/NNS
of/IN
the/DT
House/NN
,/,
once/RB
the/DT
most/RBS
vulnerable/JJ
of/IN
incumbents/NNS
,/,
have/VBP
become/VBN
virtually/RB
immune/JJ
to/TO
defeat/VB
./.
The/DT
one/CD
exception/NN
to/TO
this/DT
recent/JJ
trend/NN
was/VBD
the/DT
defeat/NN
of/IN
13/CD
of/IN
the/DT
52/CD
freshman/NN
Republicans/NNS
brought/VBD
into/IN
office/NN
in/IN
1980/CD
by/IN
the/DT
Reagan/NNP
revolution/NN
and/CC
running/VBG
for/IN
re-election/NN
in/IN
1982/CD
./.
Because/IN
these/DT
freshmen/NNS
placed/VBD
far/RB
more/JJR
emphasis/NN
on/IN
their/PRP$
partisan/JJ
role/NN
--/:
spreading/VBG
the/DT
Reagan/NNP
revolution/NN
--/:
in/IN
national/JJ
policy/NN
making/VBG
,/,
they/PRP
were/VBD
more/RBR
vulnerable/JJ
to/TO
defeat/VB
./.
Fourth/JJ
,/,
the/DT
theory/NN
indicates/VBZ
why/WRB
the/DT
Republican/NNP
Party/NNP
may/MD
have/VB
a/DT
difficult/JJ
time/NN
attracting/VBG
viable/JJ
candidates/NNS
for/IN
congressional/JJ
office/NN
./.
Potential/JJ
candidates/NNS
may/MD
be/VB
discouraged/VBN
from/IN
running/VBG
less/RBR
by/IN
the/DT
congressional/JJ
salary/NN
than/IN
by/IN
the/DT
prospect/NN
of/IN
defeat/NN
at/IN
the/DT
hands/NNS
of/IN
a/DT
Democratic/JJ
opponent/NN
./.
To/TO
the/DT
extent/NN
that/IN
potential/JJ
Republican/NNP
candidates/NNS
and/CC
their/PRP$
financial/JJ
backers/NNS
realize/VBP
that/IN
the/DT
congressional/JJ
prisoner/NN
's/POS
dilemma/NN
game/NN
works/VBZ
to/TO
their/PRP$
disadvantage/NN
,/,
the/DT
Republican/NNP
Party/NNP
will/MD
be/VB
hindered/VBN
in/IN
its/PRP$
attempts/NNS
to/TO
field/VB
a/DT
competitive/JJ
slate/NN
of/IN
congressional/JJ
candidates/NNS
./.
Fifth/JJ
,/,
the/DT
theory/NN
may/MD
provide/VB
at/IN
least/JJS
a/DT
partial/JJ
reason/NN
for/IN
why/WRB
ticket/NN
splitting/NN
has/VBZ
been/VBN
particularly/RB
pronounced/VBN
in/IN
the/DT
South/NNP
./.
To/TO
the/DT
extent/NN
that/IN
Democratic/JJ
legislators/NNS
from/IN
the/DT
South/NNP
have/VBP
held/VBN
a/DT
disproportionate/JJ
share/NN
of/IN
power/NN
in/IN
Congress/NNP
since/IN
1932/CD
and/CC
have/VBP
been/VBN
able/JJ
to/TO
translate/VB
such/JJ
clout/NN
into/IN
relatively/RB
more/JJR
local/JJ
benefits/NNS
for/IN
their/PRP$
respective/JJ
constituencies/NNS
,/,
voters/NNS
in/IN
the/DT
South/NNP
have/VBP
had/VBD
an/DT
especially/RB
strong/JJ
incentive/NN
to/TO
keep/VB
such/JJ
Democrats/NNS
in/IN
office/NN
./.
Finally/RB
,/,
the/DT
theory/NN
suggests/VBZ
why/WRB
Republicans/NNS
generally/RB
have/VBP
fared/VBN
better/RBR
in/IN
Senate/NNP
races/NNS
than/IN
in/IN
campaigns/NNS
for/IN
the/DT
House/NNP
./.
Since/IN
local/JJ
benefit-seeking/NN
matters/VBZ
more/RBR
and/CC
national/JJ
policy/NN
making/NN
matters/VBZ
less/RBR
in/IN
the/DT
lower/JJR
chamber/NN
of/IN
Congress/NNP
,/,
this/DT
is/VBZ
precisely/RB
the/DT
pattern/NN
one/PRP
would/MD
expect/VB
if/IN
Republicans/NNS
are/VBP
less/RBR
willing/JJ
to/TO
engage/VB
in/IN
local/JJ
benefit-seeking/NN
than/IN
their/PRP$
Democratic/JJ
counterparts/NNS
./.
Is/VBZ
there/EX
any/DT
empirical/JJ
support/NN
for/IN
this/DT
theory/NN
?/.
Three/CD
pieces/NNS
of/IN
evidence/NN
corroborate/VBP
the/DT
key/JJ
assumption/NN
that/IN
Democratic/JJ
legislators/NNS
are/VBP
more/RBR
willing/JJ
to/TO
engage/VB
in/IN
local/JJ
benefit-seeking/NN
than/IN
their/PRP$
Republican/JJ
colleagues/NNS
./.
First/JJ
,/,
economists/NNS
James/NNP
Bennett/NNP
and/CC
Thomas/NNP
DiLorenzo/NNP
find/VBP
that/IN
GOP/NNP
senators/NNS
turn/VBP
back/RB
roughly/RB
10/CD
%/NN
more/JJR
of/IN
their/PRP$
allocated/VBN
personal/JJ
staff/NN
budgets/NNS
than/IN
Democrats/NNS
do/VBP
./.
To/TO
the/DT
extent/NN
that/IN
the/DT
primary/JJ
duty/NN
of/IN
personal/JJ
staff/NN
involves/VBZ
local/JJ
benefit-seeking/NN
,/,
this/DT
indicates/VBZ
that/IN
political/JJ
philosophy/NN
leads/VBZ
congressional/JJ
Republicans/NNS
to/TO
pay/VB
less/JJR
attention/NN
to/TO
narrow/JJ
constituent/NN
concerns/NNS
./.
Second/JJ
,/,
if/IN
the/DT
key/JJ
assumption/NN
is/VBZ
valid/JJ
,/,
Democrats/NNS
should/MD
have/VB
lower/JJR
attendance/NN
rates/NNS
on/IN
roll-call/NN
votes/NNS
than/IN
Republicans/NNS
do/VBP
to/TO
the/DT
extent/NN
that/IN
such/JJ
votes/NNS
reflect/VBP
national/JJ
policy/NN
making/NN
and/CC
that/IN
participating/VBG
in/IN
such/JJ
votes/NNS
takes/VBZ
away/RB
from/IN
the/DT
time/NN
a/DT
legislator/NN
could/MD
otherwise/RB
devote/VB
to/TO
local/JJ
benefit-seeking/NN
./.
This/DT
is/VBZ
indeed/RB
what/WP
the/DT
data/NNS
indicate/VBP
,/,
particularly/RB
in/IN
the/DT
case/NN
of/IN
the/DT
House/NNP
./.
The/DT
Democratic/JJ
House/NNP
attendance/NN
rate/NN
has/VBZ
not/RB
exceeded/VBN
the/DT
Republican/JJ
House/NNP
attendance/NN
rate/NN
since/IN
1959/CD
./.
Finally/RB
,/,
as/IN
shown/VBN
in/IN
the/DT
table/NN
,/,
Democrats/NNS
allocate/VBP
a/DT
higher/JJR
proportion/NN
of/IN
their/PRP$
personal/JJ
staffs/NNS
to/TO
district/NN
offices/NNS
--/:
where/WRB
local/JJ
benefit-seeking/NN
duties/NNS
matter/VBP
more/RBR
and/CC
national/JJ
policy/NN
making/NN
activities/NNS
matter/VBP
less/RBR
relative/JJ
to/TO
Washington/NNP
offices/NNS
./.
An/DT
examination/NN
of/IN
changes/NNS
in/IN
personal/JJ
staffing/NN
decisions/NNS
in/IN
the/DT
Senate/NNP
between/IN
1986/CD
and/CC
1987/CD
control/NN
of/IN
that/DT
body/NN
changed/VBD
party/NN
hands/NNS
the/DT
personal/JJ
staffing/NN
differences/NNS
noted/VBN
in/IN
the/DT
table/NN
can/MD
not/RB
be/VB
attributed/VBN
to/TO
the/DT
disproportionate/JJ
control/NN
Democrats/NNS
exercise/VBP
,/,
due/JJ
to/TO
their/PRP$
majority-party/JJ
status/NN
,/,
over/IN
other/JJ
resources/NNS
such/JJ
as/IN
committee/NN
staff/NN
./.
An/DT
additional/JJ
piece/NN
of/IN
evidence/NN
from/IN
the/DT
Senate/NNP
:/:
Holding/VBG
other/JJ
factors/NNS
constant/JJ
,/,
such/JJ
as/IN
incumbency/NN
advantages/NNS
and/CC
regional/JJ
factors/NNS
,/,
the/DT
difference/NN
between/IN
popular/JJ
votes/NNS
for/IN
Republican/JJ
presidential/JJ
and/CC
senatorial/JJ
candidates/NNS
in/IN
states/NNS
conducting/VBG
a/DT
Senate/NNP
election/NN
turns/VBZ
out/RP
to/TO
be/VB
a/DT
positive/JJ
function/NN
of/IN
how/WRB
onerous/JJ
the/DT
federal/JJ
government/NN
's/POS
tax/NN
burden/NN
is/VBZ
per/IN
state/NN
a/DT
progressive/JJ
tax/NN
rate/NN
hits/VBZ
higher-income/JJ
states/NNS
harder/RBR
)/)
./.
Put/VB
more/RBR
simply/JJ
,/,
GOP/NNP
candidates/NNS
for/IN
president/NN
are/VBP
looked/VBN
on/IN
more/RBR
kindly/RB
by/IN
voters/NNS
than/IN
Republican/JJ
candidates/NNS
for/IN
the/DT
Senate/NNP
when/WRB
the/DT
prisoner/NN
's/POS
dilemma/NN
is/VBZ
more/RBR
severe/JJ
./.
Moreover/RB
,/,
ticket/NN
splitting/NN
appears/VBZ
to/TO
take/VB
the/DT
same/JJ
peculiar/JJ
pattern/NN
at/IN
the/DT
state/NN
government/NN
level/NN
as/IN
it/PRP
does/VBZ
at/IN
the/DT
federal/JJ
level/NN
./.
State/NN
government/NN
is/VBZ
more/RBR
typically/RB
split/VBN
along/IN
Republican-governor\/Democratic-legislature/JJ
lines/NNS
than/IN
the/DT
reverse/NN
./.
A/DT
cross-state/JJ
econometric/JJ
investigation/NN
,/,
furthermore/RB
,/,
reveals/VBZ
that/IN
,/,
holding/VBG
other/JJ
factors/NNS
constant/JJ
,/,
the/DT
difference/NN
between/IN
a/DT
state/NN
's/POS
major-party/JJ
vote/NN
going/VBG
to/TO
the/DT
Republican/JJ
gubernatorial/JJ
candidate/NN
and/CC
the/DT
Republican/JJ
share/NN
of/IN
the/DT
lower/JJR
state/NN
house/NN
is/VBZ
a/DT
positive/JJ
function/NN
of/IN
the/DT
state/NN
tax/NN
rate/NN
./.
In/IN
sum/NN
,/,
at/IN
both/DT
the/DT
federal/JJ
and/CC
state/NN
government/NN
levels/NNS
at/IN
least/JJS
part/NN
of/IN
the/DT
seemingly/RB
irrational/JJ
behavior/NN
voters/NNS
display/VBP
in/IN
the/DT
voting/NN
booth/NN
may/MD
have/VB
an/DT
exceedingly/RB
rational/JJ
explanation/NN
./.
Mr./NNP
Zupan/NNP
teaches/VBZ
at/IN
the/DT
University/NNP
of/IN
Southern/NNP
California/NNP
's/POS
business/NN
school/NN
./.
A/DT
House-Senate/JJ
conference/NN
approved/VBD
a/DT
nearly/RB
$/$
17/CD
billion/CD
State/NNP
,/,
Justice/NNP
and/CC
Commerce/NNP
Department/NNP
bill/NN
that/WDT
makes/VBZ
federal/JJ
reparations/NNS
for/IN
Japanese-Americans/NNS
held/VBN
in/IN
World/NNP
War/NNP
II/NNP
internment/NN
camps/NNS
a/DT
legal/JJ
entitlement/NN
after/IN
next/JJ
Oct./NNP
1/CD
./.
The/DT
measure/NN
provides/VBZ
no/DT
money/NN
for/IN
the/DT
promised/VBN
payments/NNS
until/IN
then/RB
,/,
but/CC
beginning/VBG
in/IN
fiscal/JJ
1991/CD
,/,
the/DT
government/NN
would/MD
be/VB
committed/VBN
to/TO
meeting/VBG
annual/JJ
payments/NNS
of/IN
as/RB
much/JJ
as/IN
$/$
500/CD
million/CD
until/IN
the/DT
total/JJ
liability/NN
of/IN
approximately/RB
$/$
1.25/CD
billion/CD
is/VBZ
paid/VBN
./.
The/DT
action/NN
abandons/VBZ
earlier/JJR
efforts/NNS
to/TO
find/VB
offsetting/VBG
cuts/NNS
to/TO
fund/VB
the/DT
payments/NNS
,/,
but/CC
is/VBZ
widely/RB
seen/VBN
as/IN
a/DT
more/RBR
realistic/JJ
means/NNS
of/IN
expediting/VBG
reparations/NNS
first/RB
authorized/VBN
in/IN
1988/CD
./.
The/DT
action/NN
came/VBD
as/IN
Congress/NNP
sent/VBD
to/TO
President/NNP
Bush/NNP
a/DT
fiscal/JJ
1990/CD
bill/NN
providing/VBG
an/DT
estimated/VBN
$/$
156.7/CD
billion/CD
for/IN
the/DT
Departments/NNP
of/IN
Labor/NNP
,/,
Education/NNP
,/,
Health/NNP
and/CC
Human/NNP
Services/NNP
./.
Final/JJ
approval/NN
was/VBD
on/IN
a/DT
67-31/CD
roll/NN
call/NN
in/IN
the/DT
Senate/NNP
,/,
which/WDT
sets/VBZ
the/DT
stage/NN
for/IN
a/DT
veto/NN
confrontation/NN
with/IN
Mr./NNP
Bush/NNP
over/IN
the/DT
issue/NN
of/IN
publicly/RB
financed/VBN
abortions/NNS
for/IN
poor/JJ
women/NNS
./.
Reversing/VBG
an/DT
eight-year/JJ
federal/JJ
policy/NN
,/,
the/DT
measure/NN
supports/VBZ
Medicaid/NNP
abortions/NNS
in/IN
cases/NNS
of/IN
rape/NN
and/CC
incest/NN
,/,
but/CC
Mr./NNP
Bush/NNP
has/VBZ
so/RB
far/RB
refused/VBN
to/TO
support/VB
any/DT
specific/JJ
exemption/NN
beyond/IN
instances/NNS
in/IN
which/WDT
the/DT
mother/NN
's/POS
life/NN
is/VBZ
in/IN
danger/NN
./.
Mr./NNP
Bush/NNP
's/POS
veto/NN
power/NN
puts/VBZ
him/PRP
a/DT
commanding/VBG
position/NN
in/IN
the/DT
narrowly/RB
divided/VBN
House/NNP
,/,
but/CC
a/DT
vote/NN
to/TO
override/VB
his/PRP$
position/NN
could/MD
well/RB
pick/VB
up/RP
new/JJ
support/NN
because/IN
of/IN
the/DT
wealth/NN
of/IN
health/NN
and/CC
education/NN
programs/NNS
financed/VBN
in/IN
the/DT
underlying/JJ
bill/NN
./.
The/DT
measure/NN
before/IN
the/DT
conference/NN
yesterday/NN
funds/VBZ
the/DT
Departments/NNP
of/IN
State/NNP
,/,
Justice/NNP
and/CC
Commerce/NNP
through/IN
fiscal/JJ
1990/CD
./.
An/DT
estimated/VBN
$/$
1.32/CD
billion/CD
is/VBZ
provided/VBN
for/IN
next/JJ
year/NN
's/POS
census/NN
,/,
and/CC
negotiators/NNS
stripped/VBD
a/DT
Senate-passed/JJ
rider/NN
seeking/VBG
to/TO
block/VB
the/DT
counting/NN
of/IN
illegal/JJ
aliens/NNS
./.
Elsewhere/RB
in/IN
the/DT
Commerce/NNP
Department/NNP
,/,
nearly/RB
$/$
191.2/CD
million/CD
is/VBZ
preserved/VBN
for/IN
assistance/NN
programs/NNS
under/IN
the/DT
Economic/NNP
Development/NNP
Administration/NNP
./.
And/CC
in/IN
a/DT
footnote/NN
to/TO
the/DT
fall/NN
of/IN
House/NNP
Speaker/NNP
James/NNP
Wright/NNP
this/DT
year/NN
,/,
the/DT
conference/NN
voted/VBD
to/TO
rescind/VB
$/$
11.8/CD
million/CD
in/IN
unspent/JJ
EDA/NNP
funds/NNS
for/IN
a/DT
Fort/NNP
Worth/NNP
,/,
Texas/NNP
,/,
stockyards/NNS
project/NN
that/WDT
figured/VBD
in/IN
ethics/NNS
charges/NNS
against/IN
the/DT
former/JJ
Democratic/JJ
leader/NN
./.
Fiscal/JJ
pressures/NNS
also/RB
forced/VBD
the/DT
adoption/NN
of/IN
new/JJ
fees/NNS
charged/VBN
by/IN
federal/JJ
agencies/NNS
,/,
and/CC
an/DT
18/CD
%/NN
increase/NN
in/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
's/POS
budget/NN
would/MD
be/VB
financed/VBN
entirely/RB
by/IN
an/DT
added/VBN
$/$
26/CD
million/CD
in/IN
filing/NN
fees/NNS
./.
In/IN
an/DT
unprecedented/JJ
step/NN
,/,
the/DT
measure/NN
anticipates/VBZ
another/DT
$/$
30/CD
million/CD
in/IN
receipts/NNS
by/IN
having/VBG
the/DT
Federal/NNP
Bureau/NNP
of/IN
Investigation/NNP
charge/VB
for/IN
fingerprint/NN
services/NNS
in/IN
civil/JJ
cases/NNS
--/:
a/DT
change/NN
that/WDT
is/VBZ
almost/RB
certain/JJ
to/TO
increase/VB
Pentagon/NNP
costs/NNS
in/IN
processing/VBG
personnel/NNS
and/CC
security/NN
clearances/NNS
./.
The/DT
bill/NN
does/VBZ
n't/RB
include/VB
an/DT
estimated/VBN
$/$
1.9/CD
billion/CD
in/IN
supplemental/JJ
anti-drug/JJ
funds/NNS
for/IN
Justice/NNP
Department/NNP
and/CC
law-enforcement/JJ
accounts/NNS
that/WDT
are/VBP
still/RB
in/IN
conference/NN
with/IN
the/DT
House/NNP
./.
But/CC
yesterday/NN
's/POS
agreement/NN
would/MD
make/VB
it/PRP
easier/JJR
for/IN
state/NN
governments/NNS
to/TO
handle/VB
the/DT
promised/VBN
aid/NN
by/IN
deferring/VBG
for/IN
one/CD
year/NN
a/DT
scheduled/VBN
50/CD
%/NN
increase/NN
in/IN
the/DT
required/VBN
state/NN
matching/NN
funds/NNS
for/IN
law-enforcement/JJ
grants/NNS
./.
Similarly/RB
,/,
the/DT
measure/NN
adjusts/VBZ
the/DT
current/JJ
funding/VBG
formula/NN
to/TO
promise/VB
smaller/JJR
states/NNS
such/JJ
as/IN
New/NNP
Hampshire/NNP
and/CC
Delaware/NNP
a/DT
minimum/NN
allocation/NN
of/IN
$/$
1.6/CD
million/CD
each/DT
in/IN
drug/NN
grants/NNS
,/,
or/CC
three/CD
times/NNS
the/DT
current/JJ
minimum/NN
./.
The/DT
odd/JJ
mix/NN
of/IN
departments/NNS
in/IN
the/DT
bill/NN
makes/VBZ
it/PRP
one/CD
of/IN
the/DT
more/JJR
eclectic/NN
of/IN
the/DT
annual/JJ
appropriations/NNS
measures/NNS
,/,
and/CC
the/DT
assorted/JJ
provisions/NNS
attached/VBN
by/IN
lawmakers/NNS
run/VBP
from/IN
$/$
1.5/CD
million/CD
for/IN
a/DT
fish/NN
farm/NN
in/IN
Arkansas/NNP
to/TO
a/DT
music/NN
festival/NN
in/IN
Moscow/NNP
under/IN
the/DT
United/NNP
States/NNP
Information/NNP
Agency/NNP
./.
Lawmakers/NNS
scrapped/VBD
all/DT
of/IN
a/DT
$/$
7.4/CD
million/CD
State/NNP
Department/NNP
request/NN
for/IN
the/DT
1992/CD
Expo/NNP
in/IN
Seville/NNP
,/,
Spain/NNP
,/,
but/CC
agreed/VBD
elsewhere/RB
to/TO
$/$
15,000/CD
for/IN
an/DT
oil/NN
portrait/NN
of/IN
former/JJ
Chief/NNP
Justice/NNP
Warren/NNP
Burger/NNP
./.
Senate/NNP
Commerce/NNP
Committee/NNP
Chairman/NNP
Ernest/NNP
Hollings/NNP
D./NNP
,/,
S.C./NNP
who/WP
also/RB
chairs/VBZ
the/DT
Senate/NNP
appropriations/NNS
subcommittee/NN
for/IN
the/DT
department/NN
,/,
attached/VBD
$/$
10/CD
million/CD
for/IN
an/DT
advanced/JJ
technology/NN
initiative/NN
,/,
including/VBG
work/NN
on/IN
high-definition/JJ
television/NN
./.
His/PRP$
Republican/JJ
counterpart/NN
,/,
Sen./NNP
Warren/NNP
Rudman/NNP
R./NNP
,/,
N.H./NNP
his/PRP$
position/NN
to/TO
wage/VB
a/DT
legislative/JJ
war/NN
with/IN
the/DT
conservative/JJ
board/NN
of/IN
the/DT
Legal/NNP
Services/NNP
Corp/NNP
./.
An/DT
estimated/VBN
$/$
321/CD
million/CD
is/VBZ
provided/VBN
to/TO
maintain/VB
the/DT
program/NN
,/,
but/CC
Mr./NNP
Rudman/NNP
also/RB
succeeded/VBD
in/IN
attaching/VBG
language/NN
seeking/VBG
to/TO
curb/VB
the/DT
authority/NN
of/IN
the/DT
current/JJ
board/NN
until/IN
new/JJ
members/NNS
are/VBP
confirmed/VBN
./.
The/DT
effective/JJ
date/NN
of/IN
any/DT
new/JJ
regulations/NNS
by/IN
the/DT
current/JJ
board/NN
would/MD
be/VB
delayed/VBN
until/IN
Oct./NNP
1/CD
next/JJ
year/NN
,/,
and/CC
the/DT
bill/NN
seeks/VBZ
to/TO
reverse/VB
efforts/NNS
by/IN
the/DT
corporation/NN
to/TO
cut/VB
off/RP
funds/NNS
to/TO
service/NN
organizations/NNS
such/JJ
as/IN
the/DT
Food/NNP
Research/NNP
and/CC
Action/NNP
Center/NNP
./.
The/DT
bill/NN
also/RB
provides/VBZ
$/$
620.5/CD
million/CD
to/TO
meet/VB
U.S./NNP
contributions/NNS
to/TO
international/JJ
organizations/NNS
and/CC
$/$
80/CD
million/CD
for/IN
peace-keeping/JJ
activities/NNS
./.
Both/DT
accounts/NNS
reflect/VBP
significant/JJ
increases/NNS
from/IN
fiscal/JJ
1989/CD
,/,
although/IN
the/DT
amount/NN
for/IN
peace-keeping/NN
shows/VBZ
a/DT
27/CD
%/NN
cut/NN
from/IN
the/DT
administration/NN
's/POS
request/NN
./.
Mercury/NNP
Savings/NNP
&/CC
Loan/NNP
Association/NNP
said/VBD
it/PRP
retained/VBD
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
as/IN
its/PRP$
lead/NN
investment/NN
banker/NN
to/TO
advise/VB
it/PRP
regarding/VBG
a/DT
possible/JJ
sale/NN
or/CC
other/JJ
combination/NN
of/IN
the/DT
Huntington/NNP
Beach/NNP
,/,
Calif./NNP
,/,
thrift/NN
./.
Mercury/NNP
,/,
which/WDT
has/VBZ
assets/NNS
of/IN
more/JJR
than/IN
$/$
2/CD
billion/CD
and/CC
24/CD
branches/NNS
in/IN
California/NNP
,/,
said/VBD
the/DT
action/NN
to/TO
improve/VB
its/PRP$
regulatory/JJ
capital/NN
position/NN
is/VBZ
related/VBN
directly/RB
to/TO
new/JJ
capital/NN
requirements/NNS
mandated/VBN
by/IN
recently/RB
adopted/VBN
federal/JJ
legislation/NN
./.
Mercury/NNP
also/RB
said/VBD
it/PRP
extended/VBD
its/PRP$
two-year/JJ
advisory/JJ
relationship/NN
with/IN
Montgomery/NNP
Securities/NNP
of/IN
San/NNP
Francisco/NNP
./.
Mercury/NNP
's/POS
stock/NN
closed/VBD
yesterday/NN
at/IN
$/$
4.875/CD
,/,
unchanged/JJ
in/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
Watching/VBG
Congress/NNP
sweat/VB
and/CC
grimace/VB
through/IN
its/PRP$
annual/JJ
budget/NN
labors/NNS
,/,
fighting/VBG
the/DT
urge/NN
to/TO
spend/VB
more/JJR
,/,
we/PRP
're/VBP
reminded/VBN
of/IN
those/DT
late-night/JJ
movies/NNS
in/IN
which/WDT
the/DT
anguished/JJ
serial/JJ
killer/NN
turns/VBZ
himself/PRP
in/RP
to/TO
police/NN
and/CC
says/VBZ
,/,
``/``
Stop/VB
me/PRP
before/IN
I/PRP
kill/VBP
again/RB
./.
''/''
The/DT
Members/NNS
know/VBP
they/PRP
're/VBP
doing/VBG
wrong/JJ
,/,
but/CC
they/PRP
need/MD
help/NN
to/TO
restrain/VB
their/PRP$
darker/JJR
compulsions/NNS
./.
Arkansas/NNP
Democrat/NNP
David/NNP
Pryor/NNP
spilled/VBD
his/PRP$
guts/NNS
on/IN
the/DT
Senate/NNP
floor/NN
the/DT
other/JJ
day/NN
after/IN
he/PRP
'd/MD
joined/VBD
the/DT
Finance/NNP
Committee/NNP
's/POS
early-morning/JJ
pork-barrel/NN
revels/NNS
:/:
``/``
I/PRP
must/MD
tell/VB
you/PRP
.../:
I/PRP
come/VBP
to/TO
the/DT
floor/NN
tonight/RB
as/IN
one/PRP
who/WP
ended/VBD
up/RP
with/IN
a/DT
busload/NN
of/IN
extraneous/JJ
matter/NN
./.
It/PRP
was/VBD
nothing/NN
more/JJR
or/CC
nothing/NN
less/JJR
than/IN
a/DT
feeding/NN
frenzy/NN
./.
''/''
He/PRP
was/VBD
turning/VBG
himself/PRP
in/RP
./.
``/``
Frankly/RB
,/,
as/IN
I/PRP
was/VBD
walking/VBG
back/RB
to/TO
get/VB
in/IN
my/PRP$
car/NN
,/,
I/PRP
heard/VBD
many/JJ
,/,
many/JJ
people/NNS
.../:
opening/VBG
champagne/NN
bottles/NNS
and/CC
celebrating/VBG
individual/JJ
victories/NNS
that/IN
some/DT
of/IN
us/PRP
had/VBD
accomplished/VBN
in/IN
getting/VBG
our/PRP$
little/JJ
deal/NN
in/IN
the/DT
tax/NN
bill/NN
and/CC
winking/VBG
at/IN
this/DT
person/NN
for/IN
slipping/VBG
this/DT
in/RP
,/,
''/''
he/PRP
said/VBD
./.
``/``
As/IN
I/PRP
was/VBD
driving/VBG
home/NN
,/,
I/PRP
did/VBD
not/RB
feel/VB
very/RB
good/JJ
about/IN
myself/PRP
./.
''/''
We/PRP
can/MD
applaud/VB
Mr./NNP
Pryor/NNP
's/POS
moment/NN
of/IN
epiphany/NN
,/,
even/RB
as/IN
we/PRP
understand/VBP
that/IN
he/PRP
and/CC
his/PRP$
confreres/FW
need/VBP
restraint/NN
lest/IN
they/PRP
kill/VBP
again/RB
./.
A/DT
good/JJ
place/NN
to/TO
start/VB
the/DT
rehabilitation/NN
is/VBZ
a/DT
``/``
legislative/JJ
line-item/JJ
veto/NN
''/''
bill/NN
now/RB
being/VBG
offered/VBN
by/IN
Indiana/NNP
Senator/NNP
Dan/NNP
Coats/NNP
./.
The/DT
Coats/NNP
bill/NN
,/,
which/WDT
already/RB
has/VBZ
32/CD
Senate/NNP
co-sponsors/NNS
,/,
is/VBZ
n't/RB
a/DT
pure/JJ
line-item/JJ
veto/NN
because/IN
it/PRP
would/MD
apply/VB
only/RB
to/TO
spending/NN
bills/NNS
./.
Instead/RB
it/PRP
's/VBZ
a/DT
form/NN
of/IN
``/``
enhanced/JJ
rescission/NN
,/,
''/''
giving/VBG
a/DT
President/NNP
a/DT
chance/NN
to/TO
rescind/VB
,/,
or/CC
strike/VB
,/,
specific/JJ
spending/VBG
items/NNS
that/WDT
just/RB
go/VBP
too/RB
far/RB
./.
Under/IN
the/DT
proposal/NN
,/,
a/DT
President/NNP
would/MD
have/VB
a/DT
chance/NN
twice/RB
each/DT
year/NN
to/TO
return/VB
a/DT
package/NN
of/IN
``/``
rescissions/NNS
''/''
to/TO
the/DT
Hill/NNP
--/:
once/RB
when/WRB
he/PRP
proposes/VBZ
his/PRP$
budget/NN
and/CC
again/RB
after/IN
Congress/NNP
disposes/VBZ
./.
Congress/NNP
would/MD
have/VB
20/CD
days/NNS
to/TO
reject/VB
the/DT
package/NN
with/IN
a/DT
50/CD
%/NN
majority/NN
,/,
but/CC
then/RB
a/DT
President/NNP
could/MD
veto/VB
that/DT
rejection/NN
./.
Congress/NNP
would/MD
then/RB
need/VB
the/DT
usual/JJ
two-thirds/NNS
majority/NN
to/TO
override/VB
any/DT
veto/NN
./.
The/DT
proposal/NN
would/MD
restore/VB
some/DT
discipline/NN
erased/VBN
from/IN
the/DT
budget/NN
process/NN
by/IN
the/DT
1974/CD
Budget/NNP
``/``
Reform/NNP
''/''
Act/NNP
./.
Before/IN
1974/CD
,/,
a/DT
President/NNP
could/MD
``/``
impound/VB
,/,
''/''
or/CC
refuse/VB
to/TO
spend/VB
,/,
funds/NNS
appropriated/VBN
by/IN
Congress/NNP
./.
Presidents/NNP
Kennedy/NNP
and/CC
Johnson/NNP
were/VBD
both/DT
big/JJ
users/NNS
of/IN
the/DT
impoundment/NN
power/NN
,/,
but/CC
Congress/NNP
saw/VBD
its/PRP$
chance/NN
against/IN
a/DT
weakened/VBN
President/NNP
Nixon/NNP
and/CC
stripped/VBD
it/PRP
away/RB
./.
Today/NN
a/DT
President/NNP
can/MD
still/RB
send/VB
up/RP
spending/NN
rescissions/NNS
,/,
but/CC
they/PRP
're/VBP
meaningless/JJ
unless/IN
Congress/NNP
has/VBZ
a/DT
guilty/JJ
conscience/NN
and/CC
changes/VBZ
its/PRP$
mind/NN
./.
This/DT
is/VBZ
like/IN
asking/VBG
foxes/NNS
to/TO
feel/VB
remorse/NN
about/IN
chickens/NNS
,/,
and/CC
naturally/RB
rescissions/NNS
are/VBP
almost/RB
never/RB
approved/VBN
./.
In/IN
1987/CD
,/,
President/NNP
Reagan/NNP
sent/VBD
73/CD
rescissions/NNS
back/RB
to/TO
the/DT
Hill/NNP
,/,
but/CC
only/RB
3/CD
%/NN
of/IN
the/DT
spending/NN
total/NN
was/VBD
approved/VBN
by/IN
Congress/NNP
./.
Senator/NNP
Coats/NNP
's/POS
proposal/NN
would/MD
let/VB
the/DT
proposed/VBN
spending/NN
cuts/NNS
take/VB
place/NN
automatically/RB
unless/IN
Congress/NNP
acts/VBZ
./.
The/DT
Members/NNP
could/MD
still/RB
try/VB
to/TO
serve/VB
their/PRP$
constituents/NNS
with/IN
special-interest/JJ
goodies/NNS
,/,
but/CC
the/DT
police/NN
the/DT
form/NN
of/IN
a/DT
President/NNP
a/DT
straitjacket/NN
if/IN
they/PRP
really/RB
get/VBP
crazy/JJ
,/,
as/IN
they/PRP
do/VBP
now/RB
./.
Mr./NNP
Coats/NNP
plans/VBZ
to/TO
offer/VB
his/PRP$
proposal/NN
as/IN
an/DT
amendment/NN
to/TO
a/DT
bill/NN
to/TO
raise/VB
the/DT
federal/JJ
debt/NN
limit/NN
before/IN
the/DT
end/NN
of/IN
the/DT
month/NN
./.
President/NNP
Bush/NNP
has/VBZ
endorsed/VBN
the/DT
idea/NN
,/,
and/CC
at/IN
least/JJS
50/CD
sitting/VBG
Senators/NNS
have/VBP
voted/VBN
to/TO
support/VB
enhanced/JJ
rescission/NN
authority/NN
in/IN
the/DT
past/NN
./.
We/PRP
're/VBP
told/VBN
Senator/NNP
Pryor/NNP
is/VBZ
n't/RB
yet/RB
a/DT
co-sponsor/NN
,/,
but/CC
if/IN
he/PRP
and/CC
his/PRP$
colleagues/NNS
are/VBP
serious/JJ
about/IN
kicking/VBG
their/PRP$
compulsions/NNS
,/,
they/PRP
'll/MD
sign/VB
up/RP
./.
Business/NN
and/CC
civic/JJ
operations/NNS
lurched/VBD
back/RB
toward/IN
normalcy/NN
here/RB
as/IN
congressional/JJ
officials/NNS
estimated/VBD
that/IN
the/DT
price/NN
tag/NN
for/IN
emergency/NN
assistance/NN
to/TO
earthquake-ravaged/JJ
California/NNP
would/MD
total/VB
at/IN
least/JJS
$/$
2.5/CD
billion/CD
./.
``/``
That/DT
is/VBZ
a/DT
minimum/NN
figure/NN
,/,
and/CC
I/PRP
underscore/VBP
minimum/NN
,/,
''/''
said/VBD
House/NNP
Speaker/NNP
Thomas/NNP
Foley/NNP
D./NNP
,/,
Wash/NNP
./.
California/NNP
lawmakers/NNS
./.
``/``
It/PRP
's/VBZ
impossible/JJ
to/TO
put/VB
an/DT
exact/JJ
figure/NN
on/IN
it/PRP
at/IN
this/DT
time/NN
./.
''/''
The/DT
Office/NNP
of/IN
Management/NNP
and/CC
Budget/NNP
has/VBZ
begun/VBN
looking/VBG
into/IN
legislation/NN
to/TO
provide/VB
more/JJR
funds/NNS
for/IN
earthquake/NN
repairs/NNS
./.
And/CC
California/NNP
's/POS
45-member/JJ
delegation/NN
in/IN
the/DT
House/NNP
is/VBZ
expected/VBN
to/TO
propose/VB
that/IN
emergency/NN
funds/NNS
be/VB
added/VBN
to/TO
a/DT
stop-gap/JJ
spending/NN
bill/NN
that/IN
the/DT
House/NNP
Appropriations/NNP
Committee/NNP
is/VBZ
to/TO
consider/VB
Monday/NNP
./.
For/IN
the/DT
most/JJS
part/NN
,/,
major/JJ
corporations/NNS
'/POS
headquarters/NNS
and/CC
plants/NNS
were/VBD
unaffected/JJ
or/CC
only/RB
slightly/RB
damaged/VBN
by/IN
Tuesday/NNP
's/POS
earthquake/NN
,/,
which/WDT
registered/VBD
6.9/CD
on/IN
the/DT
Richter/NNP
scale/NN
./.
One/CD
of/IN
the/DT
last/JJ
big/JJ
employers/NNS
in/IN
the/DT
Silicon/NNP
Valley/NNP
to/TO
report/VB
in/RP
,/,
Seagate/NNP
Technology/NNP
,/,
said/VBD
it/PRP
expects/VBZ
to/TO
be/VB
back/RB
at/IN
full/JJ
strength/NN
Monday/NNP
./.
The/DT
day/NN
before/IN
the/DT
quake/NN
,/,
Seagate/NNP
completed/VBD
three/CD
days/NNS
of/IN
emergency/NN
training/NN
and/CC
drills/NNS
./.
Echoing/VBG
the/DT
response/NN
of/IN
almost/RB
all/DT
big/JJ
corporations/NNS
in/IN
the/DT
Bay/NNP
Area/NNP
,/,
Don/NNP
Waite/NNP
,/,
Seagate/NNP
's/POS
chief/JJ
financial/JJ
officer/NN
,/,
said/VBD
,/,
``/``
I/PRP
would/MD
n't/RB
expect/VB
this/DT
to/TO
have/VB
any/DT
significant/JJ
financial/JJ
impact/NN
./.
''/''
The/DT
city/NN
's/POS
recovery/NN
from/IN
the/DT
earthquake/NN
was/VBD
uneven/JJ
./.
Banks/NNS
indicated/VBD
they/PRP
were/VBD
operating/VBG
at/IN
greater/JJR
than/IN
90/CD
%/NN
of/IN
their/PRP$
usual/JJ
capacity/NN
,/,
but/CC
a/DT
Nob/NNP
Hill/NNP
hotel/NN
said/VBD
tourists/NNS
had/VBD
fled/VBN
,/,
leaving/VBG
the/DT
previously/RB
full/JJ
hotel/NN
with/IN
an/DT
80/CD
%/NN
vacancy/NN
rate/NN
./.
City/NN
crews/NNS
tallied/VBD
the/DT
wreckage/NN
to/TO
buildings/NNS
,/,
but/CC
lacked/VBD
a/DT
clear/JJ
sense/NN
of/IN
how/WRB
gravely/RB
transportation/NN
arteries/NNS
were/VBD
disabled/VBN
./.
Among/IN
the/DT
city/NN
's/POS
banks/NNS
,/,
Bank/NNP
of/IN
America/NNP
said/VBD
all/DT
but/CC
eight/CD
of/IN
its/PRP$
850/CD
branches/NNS
were/VBD
open/JJ
./.
The/DT
closed/VBN
branches/NNS
,/,
in/IN
San/NNP
Francisco/NNP
,/,
Hayward/NNP
,/,
Santa/NNP
Clara/NNP
and/CC
Santa/NNP
Cruz/NNP
,/,
sustained/VBD
structural/JJ
damage/NN
./.
Power/NN
failures/NNS
kept/VBD
just/RB
seven/CD
of/IN
its/PRP$
1,500/CD
automated-teller/JJ
machines/NNS
off-line/JJ
./.
Securities-trading/JJ
operations/NNS
were/VBD
moved/VBN
to/TO
Bank/NNP
of/IN
America/NNP
's/POS
Concord/NNP
office/NN
,/,
and/CC
foreign-exchange/JJ
trading/NN
operations/NNS
were/VBD
shifted/VBN
to/TO
Los/NNP
Angeles/NNP
,/,
the/DT
bank/NN
said/VBD
./.
Wells/NNP
Fargo/NNP
&/CC
Co./NNP
said/VBD
its/PRP$
Emergency/NNP
Operations/NNP
Committee/NNP
--/:
which/WDT
met/VBD
all/DT
night/NN
Tuesday/NNP
--/:
moved/VBD
its/PRP$
global-funds/JJ
transfer/NN
system/NN
to/TO
El/NNP
Monte/NNP
,/,
Calif./NNP
,/,
500/CD
miles/NNS
to/TO
the/DT
south/NN
./.
Only/RB
five/CD
of/IN
496/CD
branches/NNS
statewide/RB
remain/VBP
closed/JJ
,/,
while/IN
23/CD
of/IN
600/CD
automated-teller/JJ
machines/NNS
remained/VBD
out/IN
of/IN
order/NN
./.
The/DT
most/RBS
extensive/JJ
damage/NN
was/VBD
in/IN
small/JJ
towns/NNS
near/IN
the/DT
quake/NN
's/POS
epicenter/NN
,/,
80/CD
miles/NNS
south/RB
of/IN
San/NNP
Francisco/NNP
./.
Santa/NNP
Cruz/NNP
County/NNP
estimates/VBZ
total/JJ
damage/NN
at/IN
nearly/RB
$/$
600/CD
million/CD
./.
Santa/NNP
Clara/NNP
County/NNP
has/VBZ
a/DT
running/VBG
total/NN
so/RB
far/RB
of/IN
$/$
504/CD
million/CD
,/,
excluding/VBG
the/DT
hard-hit/JJ
city/NN
of/IN
Los/NNP
Gatos/NNP
./.
Oakland/NNP
officials/NNS
were/VBD
still/RB
uncertain/JJ
about/IN
the/DT
magnitude/NN
of/IN
structural/JJ
damage/NN
late/JJ
yesterday/NN
;/:
a/DT
section/NN
of/IN
I-880/NNP
,/,
a/DT
twotiered/JJ
highway/NN
,/,
collapsed/VBD
in/IN
Oakland/NNP
,/,
causing/VBG
a/DT
majority/NN
of/IN
the/DT
deaths/NNS
resulting/VBG
from/IN
the/DT
quake/NN
./.
San/NNP
Francisco/NNP
Mayor/NNP
Art/NNP
Agnos/NNP
estimated/VBD
that/IN
damages/NNS
to/TO
the/DT
city/NN
total/VBP
$/$
2/CD
billion/CD
./.
That/DT
includes/VBZ
dwellings/NNS
in/IN
the/DT
ravaged/VBN
Marina/NNP
district/NN
that/WDT
must/MD
be/VB
demolished/VBN
,/,
peeled/VBN
business/NN
facades/NNS
south/RB
of/IN
Market/NNP
Street/NNP
,/,
and/CC
houses/NNS
in/IN
the/DT
city/NN
's/POS
outer/JJ
Richmond/NNP
district/NN
that/WDT
were/VBD
heaved/VBN
off/IN
their/PRP$
foundations/NNS
./.
Many/JJ
streets/NNS
and/CC
sidewalks/NNS
buckled/VBD
,/,
and/CC
subterranean/JJ
water/NN
mains/NNS
and/CC
service/NN
connections/NNS
ruptured/VBD
./.
The/DT
federal/JJ
funds/NNS
would/MD
go/VB
to/TO
a/DT
range/NN
of/IN
programs/NNS
,/,
including/VBG
the/DT
Federal/NNP
Emergency/NNP
Management/NNP
Agency/NNP
,/,
highway/NN
construction/NN
accounts/NNS
and/CC
the/DT
Small/NNP
Business/NNP
Administration/NNP
,/,
according/VBG
to/TO
Rep./NNP
Vic/NNP
Fazio/NNP
D./NNP
,/,
Calif/NNP
./.
FEMA/NNP
,/,
which/WDT
coordinates/VBZ
federal/JJ
disaster/NN
relief/NN
,/,
is/VBZ
already/RB
strapped/VBN
by/IN
the/DT
costs/NNS
of/IN
cleaning/VBG
up/RP
after/IN
Hurricane/NNP
Hugo/NNP
,/,
which/WDT
hit/VBD
the/DT
Carolinas/NNP
last/JJ
month/NN
./.
It/PRP
is/VBZ
likely/JJ
to/TO
get/VB
as/RB
much/JJ
as/IN
$/$
800/CD
million/CD
initially/RB
in/IN
additional/JJ
funds/NNS
,/,
and/CC
eventually/RB
could/MD
get/VB
more/JJR
than/IN
$/$
1/CD
billion/CD
,/,
according/VBG
to/TO
Mr./NNP
Fazio/NNP
,/,
a/DT
member/NN
of/IN
the/DT
House/NNP
Appropriations/NNP
Committee/NNP
./.
White/NNP
House/NNP
spokesman/NN
Marlin/NNP
Fitzwater/NNP
said/VBD
there/EX
is/VBZ
enough/JJ
money/NN
on/IN
hand/NN
to/TO
deal/VB
with/IN
immediate/JJ
requirements/NNS
./.
The/DT
Bush/NNP
administration/NN
has/VBZ
at/IN
its/PRP$
disposal/NN
$/$
273/CD
million/CD
in/IN
funds/NNS
remaining/JJ
from/IN
the/DT
$/$
1.1/CD
billion/CD
Congress/NNP
released/VBN
for/IN
the/DT
cleanup/NN
after/IN
Hurricane/NNP
Hugo/NNP
./.
``/``
We/PRP
feel/VBP
we/PRP
have/VBP
the/DT
money/NN
necessary/JJ
to/TO
handle/VB
the/DT
immediate/JJ
,/,
short-term/JJ
requirements/NNS
,/,
''/''
Mr./NNP
Fitzwater/NNP
said/VBD
./.
He/PRP
added/VBD
that/IN
the/DT
Office/NNP
of/IN
Management/NNP
and/CC
Budget/NNP
,/,
the/DT
Transportation/NNP
Department/NNP
and/CC
other/JJ
agencies/NNS
are/VBP
``/``
developing/VBG
longer-term/JJ
legislation/NN
''/''
that/WDT
should/MD
be/VB
ready/JJ
soon/RB
./.
Much/JJ
of/IN
the/DT
cost/NN
of/IN
cleaning/VBG
up/RP
after/IN
the/DT
earthquake/NN
will/MD
involve/VB
repairing/VBG
highways/NNS
and/CC
bridges/NNS
./.
California/NNP
lawmakers/NNS
are/VBP
seeking/VBG
changes/NNS
in/IN
rules/NNS
governing/VBG
the/DT
federal/JJ
highway/NN
relief/NN
program/NN
so/RB
more/JJR
money/NN
can/MD
be/VB
made/VBN
available/JJ
for/IN
the/DT
state/NN
./.
Some/DT
things/NNS
ca/MD
n't/RB
be/VB
repaired/VBN
./.
The/DT
Asian/NNP
Art/NNP
Museum/NNP
in/IN
Golden/NNP
Gate/NNP
Park/NNP
reports/VBZ
$/$
10/CD
million/CD
to/TO
$/$
15/CD
million/CD
in/IN
damage/NN
,/,
including/VBG
shattered/VBN
porcelains/NNS
and/CC
stone/NN
figures/NNS
./.
Its/PRP$
neighbor/NN
,/,
the/DT
De/NNP
Young/NNP
Museum/NNP
,/,
totaled/VBD
$/$
3/CD
million/CD
to/TO
$/$
5/CD
million/CD
in/IN
structural/JJ
damage/NN
and/CC
shattered/VBN
sculpture/NN
./.
The/DT
city/NN
's/POS
main/JJ
library/NN
is/VBZ
closed/VBN
because/RB
of/IN
fissures/NNS
that/WDT
opened/VBD
in/IN
its/PRP$
walls/NNS
,/,
and/CC
marble/NN
facings/NNS
and/CC
ornamental/JJ
plaster/NN
at/IN
the/DT
Beaux/NNP
Arts/NNP
City/NNP
Hall/NNP
broke/VBD
off/RP
in/IN
the/DT
temblor/NN
./.
The/DT
ground/NN
along/IN
the/DT
Embarcadero/NNP
the/DT
street/NN
that/WDT
skirts/VBZ
the/DT
city/NN
's/POS
eastern/JJ
boundary/NN
and/CC
piers/NNS
--/:
dropped/VBD
six/CD
inches/NNS
after/IN
the/DT
quake/NN
,/,
wreaking/VBG
major/JJ
damage/NN
to/TO
at/IN
least/JJS
one/CD
of/IN
the/DT
piers/NNS
./.
At/IN
San/NNP
Francisco/NNP
International/NNP
Airport/NNP
,/,
shock/NN
waves/NNS
wrecked/VBD
the/DT
control/NN
tower/NN
,/,
knocking/VBG
down/IN
computers/NNS
and/CC
shattering/VBG
glass/NN
./.
Offices/NNS
of/IN
the/DT
city/NN
's/POS
Rent/NNP
Board/NNP
were/VBD
destroyed/VBN
./.
Mayor/NNP
Agnos/NNP
's/POS
$/$
2/CD
billion/CD
estimate/NN
does/VBZ
n't/RB
include/VB
damage/NN
to/TO
freeway/NN
arteries/NNS
leading/VBG
into/IN
the/DT
city/NN
,/,
some/DT
of/IN
which/WDT
remained/VBD
closed/JJ
./.
A/DT
major/JJ
chunk/NN
of/IN
the/DT
$/$
2/CD
billion/CD
is/VBZ
expected/VBN
to/TO
be/VB
eaten/VBN
up/RP
by/IN
overtime/NN
for/IN
city/NN
workers/NNS
deployed/VBN
in/IN
the/DT
emergency/NN
,/,
said/VBD
a/DT
spokesman/NN
for/IN
Mr./NNP
Agnos/NNP
./.
``/``
All/DT
of/IN
the/DT
city/NN
's/POS
$/$
5.9/CD
million/CD
emergency/NN
reserve/NN
was/VBD
spent/VBN
in/IN
the/DT
first/JJ
24/CD
hours/NNS
''/''
on/IN
overtime/NN
salaries/NNS
,/,
he/PRP
said/VBD
./.
Insurers/NNS
struggled/VBD
to/TO
to/TO
get/VB
a/DT
firm/JJ
grasp/NN
on/IN
the/DT
volume/NN
of/IN
claims/NNS
pouring/VBG
into/IN
their/PRP$
offices/NNS
./.
At/IN
Fireman/NNP
's/POS
Fund/NNP
Corp./NNP
,/,
a/DT
spokesman/NN
said/VBD
142/CD
claims/NNS
were/VBD
received/VBN
in/IN
the/DT
first/JJ
24/CD
hours/NNS
after/IN
the/DT
quake/NN
,/,
and/CC
the/DT
company/NN
is/VBZ
braced/VBN
for/IN
as/RB
many/JJ
as/IN
5,000/CD
claims/NNS
from/IN
its/PRP$
35,000/CD
residential/JJ
and/CC
35,000/CD
business/NN
policyholders/NNS
in/IN
the/DT
affected/VBN
area/NN
./.
``/``
Claims/NNS
range/VBP
from/IN
a/DT
scratched/VBN
fender/NN
--/:
and/CC
there/EX
were/VBD
an/DT
awful/JJ
lot/NN
of/IN
cars/NNS
damaged/VBN
in/IN
this/DT
--/:
to/TO
a/DT
major/JJ
processing/NN
plant/NN
,/,
''/''
a/DT
spokesman/NN
said/VBD
./.
``/``
We/PRP
're/VBP
delivering/VBG
a/DT
check/NN
for/IN
$/$
750,000/CD
to/TO
an/DT
automotive/JJ
business/NN
in/IN
Berkeley/NNP
that/WDT
burned/VBD
on/IN
Tuesday/NNP
./.
''/''
Fireman/NNP
's/POS
is/VBZ
part/NN
of/IN
a/DT
$/$
38/CD
million/CD
syndicate/NN
that/WDT
supplies/VBZ
business/NN
interruption/NN
insurance/NN
to/TO
the/DT
city/NN
on/IN
the/DT
Bay/NNP
Bridge/NNP
,/,
which/WDT
must/MD
pay/VB
employees/NNS
during/IN
the/DT
three/CD
weeks/NNS
or/CC
more/JJR
it/PRP
is/VBZ
expected/VBN
to/TO
be/VB
out/IN
of/IN
service/NN
and/CC
deprived/VBN
of/IN
toll/NN
income/NN
./.
California/NNP
lawmakers/NNS
want/VBP
to/TO
eliminate/VB
temporarily/RB
a/DT
$/$
100/CD
million/CD
cap/NN
on/IN
the/DT
amount/NN
of/IN
federal/JJ
highway/NN
relief/NN
for/IN
each/DT
state/NN
for/IN
each/DT
disaster/NN
,/,
as/RB
well/RB
as/IN
a/DT
prohibition/NN
on/IN
using/VBG
the/DT
emergency/NN
highway/NN
aid/NN
to/TO
repair/VB
toll/NN
roads/NNS
./.
In/IN
addition/NN
,/,
under/IN
the/DT
highway-relief/JJ
program/NN
,/,
the/DT
federal/JJ
government/NN
provides/VBZ
100/CD
%/NN
of/IN
emergency/NN
highway/NN
aid/NN
for/IN
only/RB
the/DT
first/JJ
90/CD
days/NNS
of/IN
a/DT
repair/NN
effort/NN
./.
After/IN
that/DT
,/,
the/DT
federal/JJ
share/NN
diminishes/VBZ
./.
For/IN
interstate/JJ
highways/NNS
,/,
the/DT
federal/JJ
share/NN
normally/RB
would/MD
drop/VB
to/TO
90/CD
%/NN
of/IN
the/DT
cost/NN
of/IN
repairs/NNS
,/,
and/CC
the/DT
state/NN
would/MD
have/VB
to/TO
pick/VB
up/RP
the/DT
remainder/NN
of/IN
the/DT
cost/NN
./.
But/CC
lawmakers/NNS
want/VBP
to/TO
extend/VB
the/DT
period/NN
for/IN
100/CD
%/NN
federal/JJ
funding/NN
for/IN
several/JJ
months/NNS
./.
Those/DT
changes/NNS
also/RB
would/MD
apply/VB
to/TO
two/CD
areas/NNS
hit/VBD
hard/RB
by/IN
Hurricane/NNP
Hugo/NNP
--/:
South/NNP
Carolina/NNP
and/CC
the/DT
U.S./NNP
Virgin/NNP
Islands/NNP
,/,
according/VBG
to/TO
an/DT
aide/NN
to/TO
Rep./NNP
Fazio/NNP
./.
Meanwhile/RB
,/,
the/DT
FEMA/NNP
announced/VBD
a/DT
toll-free/JJ
telephone/NN
number/NN
800-462-9029/CD
service/NN
to/TO
victims/NNS
of/IN
the/DT
earthquake/NN
./.
Lines/NNS
will/MD
be/VB
available/JJ
24/CD
hours/NNS
a/DT
day/NN
to/TO
take/VB
applications/NNS
for/IN
such/JJ
disaster/NN
relief/NN
as/IN
temporary/JJ
housing/NN
and/CC
emergency/NN
home/NN
repairs/NNS
by/IN
phone/NN
./.
Transportation/NN
officials/NNS
are/VBP
expecting/VBG
utter/JJ
traffic/NN
pandemonium/NN
beginning/VBG
Monday/NNP
and/CC
growing/VBG
worse/JJR
over/IN
the/DT
next/JJ
several/JJ
weeks/NNS
./.
Some/DT
250,000/CD
cars/NNS
normally/RB
cross/VBP
the/DT
closed/VBN
Bay/NNP
Bridge/NNP
between/IN
Oakland/NNP
and/CC
San/NNP
Francisco/NNP
daily/RB
./.
Officials/NNS
say/VBP
it/PRP
is/VBZ
clear/JJ
that/IN
alternate/JJ
routes/NNS
ca/MD
n't/RB
handle/VB
the/DT
overflow/NN
./.
The/DT
state/NN
is/VBZ
calling/VBG
in/IN
a/DT
flotilla/NN
of/IN
navy/NN
landing/NN
vessels/NNS
and/CC
other/JJ
boats/NNS
to/TO
expand/VB
ferry/NN
service/NN
across/IN
the/DT
bay/NN
and/CC
hopes/VBZ
to/TO
add/VB
numerous/JJ
new/JJ
bus/NN
routes/NNS
and/CC
train/NN
departures/NNS
to/TO
help/VB
alleviate/VB
the/DT
traffic/NN
problem/NN
./.
Moreover/RB
,/,
state/NN
officials/NNS
are/VBP
urging/VBG
freight/NN
haulers/NNS
to/TO
bypass/VB
many/JJ
of/IN
the/DT
area/NN
's/POS
main/JJ
highways/NNS
and/CC
to/TO
travel/VB
late/RB
at/IN
night/NN
or/CC
during/IN
predawn/JJ
hours/NNS
./.
Even/RB
so/RB
,/,
``/``
We/PRP
're/VBP
looking/VBG
for/IN
chaos/NN
,/,
''/''
said/VBD
George/NNP
Gray/NNP
,/,
a/DT
deputy/NN
district/NN
director/NN
at/IN
the/DT
California/NNP
Department/NNP
of/IN
Transportation/NNP
./.
``/``
If/IN
there/EX
's/VBZ
any/DT
way/NN
you/PRP
can/MD
do/VB
it/PRP
,/,
you/PRP
ought/MD
to/TO
go/VB
to/TO
Idaho/NNP
and/CC
go/VB
fishing/NN
for/IN
a/DT
while/NN
./.
''/''
Most/JJS
of/IN
San/NNP
Francisco/NNP
's/POS
tourists/NNS
and/CC
business/NN
travelers/NNS
already/RB
have/VBP
left/VBN
--/:
despite/IN
hotel/NN
's/POS
offers/NNS
of/IN
rate/NN
cuts/NNS
./.
``/``
Everyone/NN
left/VBD
,/,
''/''
said/VBD
Peter/NNP
Lang/NNP
,/,
reservations/NNS
manager/NN
of/IN
the/DT
Mark/NNP
Hopkins/NNP
Hotel/NNP
./.
The/DT
Westin/NNP
St./NNP
Francis/NNP
hotel/NN
,/,
which/WDT
survived/VBD
the/DT
1906/CD
earthquake/NN
and/CC
fire/NN
,/,
currently/RB
is/VBZ
less/JJR
than/IN
50/CD
%/NN
occupied/VBN
./.
``/``
We/PRP
still/RB
have/VBP
our/PRP$
die-hard/JJ
baseball/NN
fans/NNS
,/,
''/''
a/DT
spokesman/NN
said/VBD
./.
``/``
One/CD
lady/NN
from/IN
New/NNP
York/NNP
said/VBD
she/PRP
's/VBZ
not/RB
going/VBG
home/NN
until/IN
the/DT
World/NNP
Series/NNP
''/''
Gerald/NNP
F./NNP
Seib/NNP
and/CC
Joe/NNP
Davidson/NNP
in/IN
Washington/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Is/VBZ
an/DT
American/JJ
Secretary/NNP
of/IN
State/NNP
seriously/RB
suggesting/VBG
that/IN
the/DT
Khmer/NNP
Rouge/NNP
should/MD
help/VB
govern/VB
Cambodia/NNP
?/.
Apparently/RB
so/RB
./.
There/EX
are/VBP
no/RB
easy/JJ
choices/NNS
in/IN
Cambodia/NNP
,/,
but/CC
we/PRP
ca/MD
n't/RB
imagine/VB
that/IN
it/PRP
benefits/VBZ
the/DT
U.S./NNP
to/TO
become/VB
the/DT
catalyst/NN
for/IN
an/DT
all-too-familiar/JJ
process/NN
that/WDT
could/MD
end/VB
in/IN
another/DT
round/NN
of/IN
horror/NN
in/IN
Cambodia/NNP
./.
Now/RB
that/IN
Vietnam/NNP
appears/VBZ
to/TO
have/VB
pulled/VBN
out/IN
its/PRP$
occupation/NN
army/NN
,/,
the/DT
State/NNP
Department/NNP
is/VBZ
talking/VBG
again/RB
about/IN
accepting/VBG
an/DT
``/``
interim/JJ
''/''
coalition/NN
government/NN
in/IN
the/DT
Cambodian/JJ
capital/NN
of/IN
Phnom/NNP
Penh/NNP
./.
The/DT
coalition/NN
would/MD
include/VB
the/DT
current/JJ
Vietnamese-backed/JJ
Hun/NNP
Sen/NNP
regime/NN
,/,
the/DT
two/CD
non-communist/JJ
resistance/NN
groups/NNS
led/VBN
by/IN
Son/NNP
Sann/NNP
and/CC
Prince/NNP
Sihanouk/NNP
,/,
and/CC
the/DT
Khmer/NNP
Rouge/NNP
./.
The/DT
aim/NN
would/MD
be/VB
to/TO
end/VB
the/DT
guerrilla/NN
war/NN
for/IN
control/NN
of/IN
Cambodia/NNP
by/IN
allowing/VBG
the/DT
Khmer/NNP
Rouge/NNP
a/DT
small/JJ
share/NN
of/IN
power/NN
./.
The/DT
State/NNP
Department/NNP
says/VBZ
that/IN
any/DT
Khmer/NNP
Rouge/NNP
participation/NN
would/MD
have/VB
to/TO
be/VB
``/``
minimal/JJ
./.
''/''
The/DT
usual/JJ
problem/NN
with/IN
including/VBG
communists/NNS
in/IN
``/``
interim/JJ
''/''
coalition/NN
governments/NNS
is/VBZ
that/IN
their/PRP$
ideology/NN
and/CC
methods/NNS
require/VBP
they/PRP
squeeze/VBP
out/IN
everyone/NN
else/RB
./.
Recall/VB
that/IN
Nicaragua/NNP
's/POS
Sandinistas/NNPS
came/VBD
into/IN
Managua/NNP
as/IN
partners/NNS
in/IN
a/DT
coalition/NN
government/NN
with/IN
anti-Somoza/JJ
moderates/NNS
./.
Within/IN
two/CD
years/NNS
,/,
the/DT
moderates/NNS
were/VBD
exiled/VBN
or/CC
in/IN
prison/NN
,/,
Nicaragua/NNP
had/VBD
gone/VBN
communist/NN
,/,
and/CC
the/DT
Sandinistas/NNPS
were/VBD
building/VBG
one/CD
of/IN
the/DT
biggest/JJS
armies/NNS
in/IN
Latin/NNP
America/NNP
and/CC
threatening/VBG
their/PRP$
neighbors/NNS
./.
In/IN
Laos/NNP
,/,
when/WRB
the/DT
Western/JJ
powers/NNS
bowed/VBD
to/TO
pressure/VB
for/IN
such/PDT
a/DT
coalition/NN
it/PRP
turned/VBD
out/IN
they/PRP
were/VBD
opening/VBG
the/DT
door/NN
to/TO
communist/NN
domination/NN
./.
Even/RB
Mao/NNP
Tse-tung/NNP
's/POS
China/NNP
began/VBD
in/IN
1949/CD
with/IN
a/DT
partnership/NN
between/IN
the/DT
communists/NNS
and/CC
a/DT
number/NN
of/IN
smaller/JJR
,/,
non-communist/JJ
parties/NNS
./.
What/WP
complicates/VBZ
the/DT
scene/NN
in/IN
Cambodia/NNP
is/VBZ
that/IN
the/DT
current/JJ
regime/NN
is/VBZ
already/RB
communist/JJ
,/,
as/IN
are/VBP
its/PRP$
Vietnamese/JJ
overseers/NNS
back/RB
in/IN
Hanoi/NNP
,/,
as/IN
are/VBP
the/DT
Khmer/NNP
Rouge/NNP
--/:
who/WP
are/VBP
the/DT
strongest/JJS
of/IN
the/DT
three/CD
guerrilla/NN
groups/NNS
./.
It/PRP
's/VBZ
not/RB
clear/JJ
which/WDT
crew/NN
of/IN
communists/NNS
might/MD
prevail/VB
in/IN
a/DT
coalition/NN
government/NN
,/,
but/CC
the/DT
one/CD
good/JJ
bet/NN
is/VBZ
that/IN
the/DT
non-communists/NNS
would/MD
disappear/VB
./.
That/DT
would/MD
leave/VB
Hun/NNP
Sen/NNP
and/CC
the/DT
Khmer/NNP
Rouge/NNP
./.
The/DT
Hun/NNP
Sen/NNP
regime/NN
has/VBZ
sent/VBN
thousands/NNS
of/IN
conscript/JJ
laborers/NNS
to/TO
die/VB
of/IN
malaria/NN
and/CC
malnourishment/NN
while/IN
building/VBG
Cambodia/NNP
's/POS
equivalent/NN
of/IN
the/DT
Berlin/NNP
Wall/NNP
near/IN
the/DT
Thai/NNP
border/NN
./.
The/DT
Khmer/NNP
Rouge/NNP
,/,
however/RB
,/,
carry/VBP
an/DT
unsurpassed/JJ
record/NN
for/IN
Cambodian/JJ
tyranny/NN
./.
These/DT
utopians/NNS
caused/VBD
the/DT
deaths/NNS
--/:
by/IN
starvation/NN
,/,
disease/NN
or/CC
execution/NN
--/:
of/IN
well/RB
over/IN
one/CD
million/CD
Cambodians/NNPS
./.
The/DT
Cambodian/JJ
horror/NN
was/VBD
so/RB
bad/JJ
that/IN
the/DT
Vietnamese/JJ
occupation/NN
in/IN
1978/CD
was/VBD
a/DT
perverse/JJ
form/NN
of/IN
relief/NN
./.
The/DT
world/NN
might/MD
want/VB
to/TO
believe/VB
that/IN
the/DT
Khmer/NNP
Rouge/NNP
ca/MD
n't/RB
still/RB
be/VB
such/JJ
bad/JJ
guys/NNS
,/,
just/RB
as/IN
in/IN
the/DT
late/JJ
1970s/CD
it/PRP
was/VBD
reluctant/JJ
to/TO
credit/VB
the/DT
reports/NNS
of/IN
genocide/NN
then/RB
taking/VBG
place/NN
./.
But/CC
there/EX
is/VBZ
no/DT
solid/JJ
evidence/NN
that/IN
the/DT
Khmer/NNP
Rouge/NNP
have/VBP
changed/VBN
./.
Some/DT
of/IN
our/PRP$
sources/NNS
in/IN
Thailand/NNP
say/VBP
the/DT
notorious/JJ
old/JJ
Khmer/NNP
Rouge/NNP
leader/NN
,/,
Pol/NNP
Pot/NNP
,/,
has/VBZ
been/VBN
holed/VBN
up/IN
this/DT
summer/NN
in/IN
Khmer/NNP
Rouge/NNP
camps/NNS
near/IN
the/DT
Thai-Cambodian/JJ
border/NN
./.
So/IN
it/PRP
's/VBZ
difficult/JJ
to/TO
swallow/VB
the/DT
notion/NN
that/IN
Mr./NNP
Baker/NNP
is/VBZ
willing/JJ
to/TO
accept/VB
conditions/NNS
that/WDT
would/MD
help/VB
the/DT
Khmer/NNP
Rouge/NNP
set/VBD
up/IN
shop/NN
again/RB
in/IN
Phnom/NNP
Penh/NNP
./.
True/JJ
,/,
Prince/NNP
Sihanouk/NNP
backs/VBZ
the/DT
idea/NN
of/IN
such/PDT
a/DT
coalition/NN
,/,
at/IN
least/JJS
for/IN
this/DT
week/NN
./.
But/CC
Prince/NNP
Sihanouk/NNP
has/VBZ
backed/VBN
all/DT
sorts/NNS
of/IN
ideas/NNS
over/IN
the/DT
years/NNS
,/,
and/CC
done/VBN
rather/RB
better/RB
by/IN
himself/PRP
than/IN
by/IN
Cambodia/NNP
./.
Nor/CC
should/MD
the/DT
U.S./NNP
worry/VB
much/RB
about/IN
offending/VBG
China/NNP
,/,
which/WDT
still/RB
aids/VBZ
the/DT
Khmer/NNP
Rouge/NNP
./.
It/PRP
's/VBZ
time/NN
the/DT
State/NNP
Department/NNP
recognized/VBD
that/IN
China/NNP
does/VBZ
not/RB
play/VB
by/IN
gentlemen/NNS
's/POS
rules/NNS
./.
For/IN
the/DT
U.S./NNP
to/TO
lend/VB
even/RB
the/DT
slightest/JJS
support/NN
to/TO
the/DT
most/RBS
infamous/JJ
killers/NNS
on/IN
Indochina/NNP
's/POS
bleak/JJ
scene/NN
could/MD
only/RB
disturb/VB
America/NNP
's/POS
allies/NNS
elsewhere/RB
./.
It/PRP
would/MD
be/VB
entirely/RB
rational/JJ
for/IN
communist/NN
insurgents/NNS
in/IN
countries/NNS
such/JJ
as/IN
the/DT
Philippines/NNP
or/CC
Peru/NNP
to/TO
conclude/VB
the/DT
following/NN
:/:
Fight/VB
viciously/RB
enough/RB
and/CC
the/DT
U.S./NNP
,/,
under/IN
the/DT
banner/NN
of/IN
pragmatism/NN
,/,
might/MD
eventually/RB
help/VB
negotiate/VB
your/PRP$
way/NN
to/TO
victory/NN
./.
U.S./NNP
diplomacy/NN
has/VBZ
done/VBN
it/PRP
before/IN
,/,
and/CC
it/PRP
will/MD
likely/RB
do/VB
it/PRP
again/RB
./.
The/DT
administration/NN
and/CC
Congress/NNP
have/VBP
lately/RB
tangoed/VBD
around/IN
the/DT
idea/NN
of/IN
sending/VBG
military/JJ
aid/NN
to/TO
Cambodia/NNP
's/POS
non-communists/NNS
./.
But/CC
now/RB
the/DT
possibility/NN
of/IN
``/``
diplomatic/JJ
movement/NN
''/''
(/(
Vietnam/NNP
's/POS
withdrawal/NN
,/,
the/DT
Baker/NNP
initiative/NN
that/DT
plan/NN
on/IN
hold/NN
,/,
with/IN
the/DT
proviso/NN
that/IN
if/IN
the/DT
going/NN
got/VBD
rough/JJ
,/,
the/DT
U.S./NNP
would/MD
then/RB
rearm/VB
the/DT
opposition/NN
./.
Why/WRB
the/DT
timidity/NN
?/.
At/IN
the/DT
very/RB
least/JJS
,/,
the/DT
odds/NNS
are/VBP
heavily/RB
weighted/VBN
against/IN
the/DT
prospects/NNS
of/IN
preventing/VBG
the/DT
Khmer/NNP
Rouge/NNP
and/CC
Cambodia/NNP
's/POS
communists/NNS
from/IN
ultimately/RB
moving/VBG
against/IN
their/PRP$
opponents/NNS
./.
When/WRB
that/DT
day/NN
comes/VBZ
,/,
it/PRP
would/MD
be/VB
particularly/RB
awful/JJ
to/TO
know/VB
that/IN
the/DT
United/NNP
States/NNPS
sat/VBD
on/IN
military/JJ
aid/NN
and/CC
deprived/VBD
these/DT
people/NNS
of/IN
the/DT
means/NNS
to/TO
settle/VB
their/PRP$
fate/NN
with/IN
at/IN
least/JJS
a/DT
little/JJ
honor/NN
./.
Michael/NNP
F./NNP
Harris/NNP
,/,
53/CD
,/,
was/VBD
named/VBN
executive/JJ
vice/NN
president/NN
,/,
North/NNP
America/NNP
,/,
for/IN
the/DT
Financial/NNP
Times/NNPS
,/,
the/DT
business/NN
newspaper/NN
published/VBN
by/IN
this/DT
company/NN
that/WDT
also/RB
has/VBZ
interests/NNS
in/IN
book/NN
publishing/NN
,/,
fine/JJ
china/NN
,/,
oil/NN
services/NNS
and/CC
investment/NN
banking/NN
./.
Mr./NNP
Harris/NNP
had/VBD
been/VBN
vice/NN
president/NN
for/IN
the/DT
newspaper/NN
's/POS
advertising/NN
in/IN
New/NNP
York/NNP
./.
He/PRP
takes/VBZ
additional/JJ
responsibility/NN
for/IN
newspaper/NN
sales/NNS
and/CC
distribution/NN
of/IN
the/DT
Financial/NNP
Times/NNPS
in/IN
North/NNP
America/NNP
./.
Laurance/NNP
V./NNP
Allen/NNP
,/,
44/CD
,/,
who/WP
had/VBD
been/VBN
director/NN
for/IN
North/NNP
America/NNP
,/,
resigned/VBD
to/TO
pursue/VB
other/JJ
business/NN
interests/NNS
and/CC
do/VB
some/DT
consulting/NN
./.
Cipher/NNP
Data/NNP
Products/NNPS
Inc./NNP
posted/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
14.2/CD
million/CD
,/,
or/CC
97/CD
cents/NNS
a/DT
share/NN
,/,
for/IN
its/PRP$
fiscal/JJ
first/JJ
quarter/NN
,/,
compared/VBN
with/IN
net/JJ
income/NN
of/IN
$/$
3.8/CD
million/CD
,/,
or/CC
27/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
ago/IN
./.
Revenue/NN
for/IN
the/DT
quarter/NN
ended/VBD
Sept./NNP
30/CD
fell/VBD
20/CD
%/NN
,/,
to/TO
$/$
41.3/CD
million/CD
from/IN
$/$
51.9/CD
million/CD
in/IN
the/DT
year-earlier/JJ
period/NN
./.
Cipher/NNP
Data/NNP
,/,
a/DT
San/NNP
Diego/NNP
maker/NN
of/IN
magnetic/JJ
tape/NN
peripherals/NNS
and/CC
optical/JJ
disc/NN
drives/NNS
,/,
said/VBD
the/DT
loss/NN
included/VBD
reserves/NNS
of/IN
$/$
3.8/CD
million/CD
related/VBN
to/TO
a/DT
corporate/JJ
restructuring/NN
./.
The/DT
restructuring/VBG
calls/VBZ
for/IN
a/DT
24/CD
%/NN
reduction/NN
in/IN
its/PRP$
work/NN
force/NN
over/IN
the/DT
next/JJ
two/CD
months/NNS
,/,
affecting/VBG
about/IN
525/CD
jobs/NNS
,/,
Cipher/NNP
Data/NNP
said/VBD
./.
It/PRP
is/VBZ
eliminating/VBG
the/DT
positions/NNS
of/IN
president/NN
and/CC
chief/NN
operating/NN
officer/NN
,/,
formerly/RB
held/VBN
by/IN
Edward/NNP
L./NNP
Marinaro/NNP
./.
Cipher/NNP
Data/NNP
said/VBD
Mr./NNP
Marinaro/NNP
consequently/RB
has/VBZ
resigned/VBN
from/IN
those/DT
posts/NNS
and/CC
from/IN
the/DT
company/NN
's/POS
board/NN
./.
Mr./NNP
Marinaro/NNP
could/MD
n't/RB
immediately/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
FileNet/NNP
Corp./NNP
,/,
Costa/NNP
Mesa/NNP
,/,
Calif./NNP
,/,
said/VBD
it/PRP
expects/VBZ
to/TO
report/VB
a/DT
third-quarter/JJ
loss/NN
of/IN
about/IN
$/$
1.8/CD
million/CD
,/,
or/CC
17/CD
cents/NNS
a/DT
share/NN
,/,
because/IN
of/IN
a/DT
$/$
2.5/CD
million/CD
reserve/NN
to/TO
be/VB
taken/VBN
against/IN
potential/JJ
losses/NNS
on/IN
a/DT
contract/NN
with/IN
the/DT
state/NN
of/IN
California/NNP
./.
Revenue/NN
is/VBZ
estimated/VBN
at/IN
$/$
18.6/CD
million/CD
./.
The/DT
maker/NN
of/IN
document/NN
image/NN
processing/NN
equipment/NN
said/VBD
the/DT
state/NN
procurement/NN
division/NN
had/VBD
declared/VBN
FileNet/NNP
in/IN
default/NN
on/IN
its/PRP$
contract/NN
with/IN
the/DT
secretary/NN
of/IN
state/NN
uniform/JJ
commercial/JJ
code/NN
division/NN
./.
FileNet/NNP
said/VBD
it/PRP
does/VBZ
n't/RB
believe/VB
the/DT
state/NN
has/VBZ
a/DT
valid/JJ
basis/NN
of/IN
default/NN
and/CC
is/VBZ
reviewing/VBG
its/PRP$
legal/JJ
rights/NNS
under/IN
the/DT
contract/NN
,/,
but/CC
said/VBD
it/PRP
ca/MD
n't/RB
predict/VB
the/DT
outcome/NN
of/IN
the/DT
dispute/NN
./.
The/DT
disagreement/NN
centers/VBZ
on/IN
testing/VBG
deadlines/NNS
and/CC
other/JJ
issues/NNS
involving/VBG
a/DT
FileNet/NNP
system/NN
installed/VBN
earlier/RBR
this/DT
year/NN
./.
State/NN
officials/NNS
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
late/JJ
yesterday/NN
./.
FileNet/NNP
noted/VBD
that/IN
it/PRP
had/VBD
cash/NN
and/CC
marketable/JJ
securities/NNS
totaling/VBG
$/$
22.5/CD
million/CD
on/IN
Sept./NNP
30/CD
,/,
and/CC
stockholders/NNS
'/POS
equity/NN
is/VBZ
$/$
60.1/CD
million/CD
./.
The/DT
company/NN
made/VBD
the/DT
announcement/NN
after/IN
the/DT
close/NN
of/IN
the/DT
markets/NNS
,/,
where/WRB
its/PRP$
stock/NN
finished/VB
at/IN
$/$
10.75/CD
,/,
up/IN
25/CD
cents/NNS
,/,
in/IN
over-the-counter/JJ
trading/NN
./.
Clinton/NNP
Gas/NNP
Systems/NNPS
Inc./NNP
said/VBD
it/PRP
received/VBD
a/DT
contract/NN
from/IN
Timken/NNP
Co./NNP
,/,
Canton/NNP
,/,
Ohio/NNP
,/,
to/TO
manage/VB
the/DT
natural/JJ
gas/NN
purchasing/NN
,/,
scheduling/NN
and/CC
transportation/NN
activities/NNS
for/IN
Timken/NNP
's/POS
seven/CD
Ohio/NNP
and/CC
two/CD
Pennsylvania/NNP
plants/NNS
./.
Clinton/NNP
and/CC
Timken/NNP
agreed/VBD
not/RB
to/TO
disclose/VB
the/DT
value/NN
of/IN
the/DT
contract/NN
./.
Timken/NNP
,/,
a/DT
producer/NN
of/IN
bearings/NNS
and/CC
specialty/NN
steel/NN
,/,
already/RB
buys/VBZ
gas/NN
from/IN
Clinton/NNP
./.
Clinton/NNP
said/VBD
in/IN
Columbus/NNP
,/,
Ohio/NNP
,/,
that/IN
its/PRP$
Clinton/NNP
Gas/NNP
Marketing/NNP
unit/NN
wants/VBZ
to/TO
line/VB
up/IN
a/DT
number/NN
of/IN
such/JJ
gas/NN
management/NN
contracts/NNS
./.
Manufacturers/NNS
frequently/RB
do/VBP
n't/RB
have/VB
anyone/NN
who/WP
is/VBZ
a/DT
specialist/NN
in/IN
natural/JJ
gas/NN
,/,
Clinton/NNP
said/VBD
,/,
and/CC
a/DT
specialist/NN
such/JJ
as/IN
Clinton/NNP
can/MD
save/VB
them/PRP
substantial/JJ
amounts/NNS
of/IN
money/NN
./.
The/DT
scene/NN
opens/VBZ
with/IN
pinstripe-suited/JJ
executives/NNS
--/:
Easterners/NNS
,/,
obviously/RB
--/:
glued/VBN
to/TO
cellular/JJ
phones/NNS
and/CC
hightailing/VBG
it/PRP
out/IN
of/IN
town/NN
in/IN
chauffeur-driven/JJ
limousines/NNS
./.
``/``
The/DT
carpetbaggers/NNS
,/,
''/''
snorts/VBZ
the/DT
narrator/NN
with/IN
a/DT
Texas/JJ
twang/NN
,/,
``/``
have/VBP
packed/VBN
their/PRP$
bags/NNS
and/CC
went/VBD
./.
''/''
But/CC
,/,
he/PRP
continues/VBZ
,/,
``/``
They/PRP
're/VBP
forgetting/VBG
we/PRP
're/VBP
all/DT
Texans/NNPS
./.
The/DT
Lone/NNP
Star/NNP
is/VBZ
on/IN
the/DT
rise/NN
again/RB
./.
''/''
As/IN
the/DT
music/NN
swells/NNS
,/,
viewers/NNS
discover/VBP
they/PRP
're/VBP
watching/VBG
a/DT
commercial/NN
for/IN
Lone/NNP
Star/NNP
Beer/NNP
,/,
the/DT
pride/NN
of/IN
Texas/NNP
,/,
a/DT
product/NN
of/IN
G./NNP
Heileman/NNP
Brewing/NNP
Co./NNP
,/,
a/DT
La/NNP
Crosse/NNP
,/,
Wis./NNP
,/,
unit/NN
of/IN
Bond/NNP
Corp/NNP
./.
As/IN
the/DT
ad/NN
's/POS
tone/NN
implies/VBZ
,/,
the/DT
Texas/NNP
spirit/NN
is/VBZ
pretty/RB
xenophobic/JJ
these/DT
days/NNS
,/,
and/CC
Lone/NNP
Star/NNP
is/VBZ
n't/RB
alone/RB
in/IN
trying/VBG
to/TO
take/VB
advantage/NN
of/IN
that/DT
./.
From/IN
Chevy/NNP
trucks/NNS
to/TO
Lipton/NNP
iced/JJ
tea/NN
to/TO
a/DT
host/NN
of/IN
battling/VBG
banks/NNS
,/,
the/DT
state/NN
has/VBZ
been/VBN
inundated/VBN
with/IN
broadcast/NN
commercials/NNS
and/CC
print/NN
advertising/NN
campaigns/NNS
celebrating/VBG
Texans/NNPS
and/CC
castigating/VBG
outsiders/NNS
./.
While/IN
advertisers/NNS
have/VBP
long/RB
appealed/VBN
to/TO
Texans/NNPS
'/POS
state/NN
pride/NN
and/CC
prejudices/NNS
,/,
the/DT
latest/JJS
trend/NN
has/VBZ
been/VBN
sparked/VBN
,/,
in/IN
part/NN
,/,
by/IN
the/DT
state/NN
's/POS
recent/JJ
hard/JJ
economic/JJ
times/NNS
./.
That/DT
has/VBZ
taken/VBN
some/DT
of/IN
the/DT
swagger/NN
out/IN
of/IN
natives/NNS
who/WP
like/VBP
to/TO
brag/VB
that/IN
Texas/NNP
is/VBZ
the/DT
only/JJ
state/NN
that/WDT
was/VBD
once/RB
a/DT
nation/NN
,/,
but/CC
it/PRP
has/VBZ
increased/VBN
their/PRP$
legendary/JJ
resentment/NN
of/IN
outsiders/NNS
./.
In/IN
the/DT
past/NN
,/,
writes/VBZ
Houston/NNP
Chronicle/NNP
columnist/NN
Jim/NNP
Barlow/NNP
,/,
outlanders/NNS
were/VBD
accepted/VBN
only/RB
after/IN
passing/VBG
a/DT
series/NN
of/IN
tests/NNS
to/TO
prove/VB
they/PRP
had/VBD
the/DT
``/``
right/JJ
''/''
Texas/NNP
attitudes/NNS
and/CC
``/``
of/IN
course/NN
they/PRP
had/VBD
to/TO
be/VB
dipped/VBN
for/IN
parasites/NNS
./.
''/''
There/EX
is/VBZ
no/DT
small/JJ
irony/NN
in/IN
the/DT
fact/NN
that/IN
some/DT
of/IN
the/DT
most-jingoistic/JJ
advertising/NN
comes/VBZ
courtesy/NN
of/IN
--/:
you/PRP
guessed/VBD
it/PRP
--/:
outsiders/NNS
./.
Lone/NNP
Star/NNP
's/POS
Bond/NNP
Corp./NNP
parent/NN
,/,
for/IN
instance/NN
,/,
hails/VBZ
from/IN
Perth/NNP
,/,
Australia/NNP
./.
North/NNPS
Carolinians/NNPS
,/,
New/NNPS
Yorkers/NNPS
,/,
Californians/NNPS
,/,
Chicagoans/NNPS
and/CC
Ohioans/NNPS
own/VBP
Texas/NNP
banks/NNS
./.
All/DT
kinds/NNS
of/IN
landmark/NN
Texas/NNP
real/JJ
estate/NN
has/VBZ
been/VBN
snapped/VBN
up/IN
by/IN
out-of-staters/NNS
./.
Even/RB
the/DT
beloved/JJ
Dallas/NNP
Cowboys/NNPS
were/VBD
bought/VBN
by/IN
an/DT
Arkansas/NNP
oil/NN
man/NN
./.
``/``
Texas/NNP
has/VBZ
lost/VBN
its/PRP$
distinctiveness/NN
,/,
leaving/VBG
Texans/NNPS
with/IN
a/DT
hunger/NN
to/TO
feel/VB
proud/JJ
about/IN
themselves/PRP
,/,
''/''
says/VBZ
Stephen/NNP
Klineberg/NNP
,/,
a/DT
sociology/NN
professor/NN
at/IN
Rice/NNP
University/NNP
,/,
Houston/NNP
./.
``/``
This/DT
plays/VBZ
right/RB
into/IN
the/DT
hands/NNS
of/IN
the/DT
advertising/NN
agencies/NNS
./.
''/''
For/IN
example/NN
,/,
the/DT
iced-tea/NN
radio/NN
campaign/NN
for/IN
Thomas/NNP
J./NNP
Lipton/NNP
Co./NNP
,/,
an/DT
Englewood/NNP
Cliffs/NNPS
,/,
N.J./NNP
,/,
unit/NN
of/IN
Anglo-Dutch/NNP
Unilever/NNP
Group/NNP
,/,
emphatically/RB
proclaims/VBZ
:/:
``/``
Real/JJ
Texans/NNPS
do/VBP
not/RB
wear/VB
dock-siders/NNS
--/:
ever/RB
./.
Real/JJ
Texans/NNPS
do/VBP
n't/RB
play/VB
paddleball/NN
,/,
at/IN
least/JJS
I/PRP
hope/VBP
not/RB
./.
This/DT
is/VBZ
football/NN
country/NN
./.
And/CC
another/DT
thing/NN
--/:
real/JJ
Texans/NNPS
drink/VBP
Lipton/NNP
iced/JJ
tea/NN
./.
''/''
In/IN
developing/VBG
that/DT
theme/NN
at/IN
Interpublic/NNP
Group/NNP
of/IN
Cos/NNP
./.
'/''
Lintas/NNP
:/:
New/NNP
York/NNP
unit/NN
,/,
account/NN
supervisor/NN
Lisa/NNP
Buksbaum/NNP
says/VBZ
she/PRP
made/VBD
a/DT
``/``
couple/NN
of/IN
phone/NN
calls/NNS
''/''
to/TO
Dallas/NNP
ad/NN
friends/NNS
and/CC
reported/VBD
her/PRP
``/``
findings/NNS
''/''
to/TO
a/DT
team/NN
of/IN
writers/NNS
./.
Her/PRP$
findings/NNS
?/.
``/``
You/PRP
know/VBP
,/,
''/''
she/PRP
says/VBZ
,/,
``/``
stereotypical/JJ
stuff/NN
like/IN
armadillos/NNS
,/,
cowboys/NNS
and/CC
football/NN
./.
''/''
Not/RB
exactly/RB
sophisticated/JJ
market/NN
research/NN
,/,
but/CC
who/WP
cares/VBZ
as/RB
long/JJ
as/IN
the/DT
campaigns/NNS
work/VBP
./.
And/CC
ad/NN
agencies/NNS
insist/VBP
that/IN
they/PRP
do/VBP
./.
Stan/NNP
Richards/NNP
of/IN
Richards/NNP
Group/NNP
Inc./NNP
,/,
Dallas/NNP
,/,
tells/VBZ
of/IN
the/DT
Texan/NNP
who/WP
saw/VBD
the/DT
agency/NN
's/POS
tear-jerking/JJ
commercial/NN
for/IN
First/NNP
Gibraltar/NNP
Bank/NNP
F.S.B./NNP
--/:
complete/JJ
with/IN
the/DT
state/NN
's/POS
anthem/NN
--/:
and/CC
promptly/RB
invested/VBD
$/$
100,000/CD
in/IN
the/DT
thrift/NN
's/POS
CDs/NNS
./.
Never/RB
mind/VB
that/IN
First/NNP
Gibraltar/NNP
is/VBZ
one/CD
of/IN
the/DT
failed/VBN
Texas/NNP
thrifts/NNS
taken/VBN
over/IN
by/IN
outsiders/NNS
--/:
in/IN
this/DT
case/NN
,/,
an/DT
investor/NN
group/NN
headed/VBN
by/IN
New/NNP
York/NNP
financier/NN
Ronald/NNP
Perelman/NNP
./.
The/DT
North/NNP
Texas/NNP
Chevy/NNP
Dealers/NNPS
recently/RB
had/VBD
a/DT
record/NN
sales/NNS
month/NN
after/IN
the/DT
debut/NN
of/IN
ad/NN
campaign/NN
that/WDT
thumbs/VBZ
its/PRP$
nose/NN
at/IN
elite/NN
Easterners/NNS
./.
And/CC
deposits/VBZ
at/IN
NCNB/NNP
Texas/NNP
National/NNP
Bank/NNP
,/,
a/DT
unit/NN
of/IN
NCNB/NNP
Corp./NNP
,/,
Charlotte/NNP
,/,
N.C./NNP
,/,
have/VBP
increased/VBN
$/$
2/CD
billion/CD
since/IN
last/JJ
year/NN
after/IN
heavy/JJ
advertising/NN
stressing/VBG
commitment/NN
to/TO
Texas/NNP
./.
``/``
Obviously/RB
,/,
pride/NN
sells/VBZ
in/IN
Texas/NNP
,/,
''/''
says/VBZ
a/DT
spokeswoman/NN
for/IN
Bozell/NNP
Inc./NNP
,/,
Omaha/NNP
,/,
Neb./NNP
,/,
which/WDT
represents/VBZ
The/DT
ad/NN
campaigns/NNS
usually/RB
follow/VBP
one/CD
of/IN
three/CD
tracks/NNS
--/:
stressing/VBG
the/DT
company/NN
's/POS
`/``
Texasness/NN
,/,
'/''
pointing/VBG
out/IN
the/DT
competition/NN
's/POS
lack/NN
thereof/RB
,/,
or/CC
trying/VBG
to/TO
be/VB
more/RBR
Texan/JJ
than/IN
Texans/NNPS
./.
Ford/NNP
trucks/NNS
may/MD
outsell/VB
Chevy/NNP
trucks/NNS
in/IN
places/NNS
like/IN
``/``
Connecticut/NNP
and/CC
Long/NNP
Island/NNP
,/,
''/''
sniffs/VBZ
a/DT
commercial/NN
for/IN
Chevrolet/NNP
,/,
a/DT
division/NN
of/IN
General/NNP
Motors/NNPS
Corp/NNP
./.
The/DT
commercial/JJ
,/,
created/VBN
by/IN
Bateman/NNP
,/,
Bryan/NNP
&/CC
Galles/NNP
Inc./NNP
,/,
of/IN
Dallas/NNP
,/,
adds/VBZ
derisively/RB
:/:
``/``
I/PRP
bet/VBP
it/PRP
takes/VBZ
a/DT
real/JJ
tough/JJ
truck/NN
to/TO
haul/VB
your/PRP$
Ivy/NNP
League/NNP
buddies/NNS
to/TO
the/DT
yacht/NN
club/NN
./.
''/''
Because/IN
they/PRP
want/VBP
a/DT
truck/NN
that/WDT
is/VBZ
``/``
Texas/NNP
tough/JJ
,/,
''/''
the/DT
commercial/NN
concludes/VBZ
,/,
``/``
Texans/NNPS
drive/VBP
Chevy/NNP
./.
''/''
J.C./NNP
Penney/NNP
Co./NNP
,/,
which/WDT
relocated/VBD
from/IN
New/NNP
York/NNP
to/TO
suburban/JJ
Dallas/NNP
two/CD
years/NNS
ago/IN
,/,
gently/RB
wraps/VBZ
itself/PRP
in/IN
Texas/NNP
pride/NN
through/IN
a/DT
full-page/JJ
magazine/NN
ad/NN
:/:
``/``
Taking/VBG
the/DT
long-range/JJ
view/NN
to/TO
conserve/VB
what/WP
is/VBZ
of/IN
value/NN
to/TO
future/NN
generations/NNS
is/VBZ
part/NN
of/IN
the/DT
Lone/NNP
Star/NNP
lifestyle/NN
,/,
''/''
the/DT
ad/NN
reads/VBZ
./.
``/``
It/PRP
's/VBZ
part/NN
of/IN
our/PRP$
style/NN
,/,
too/RB
./.
''/''
According/VBG
to/TO
several/JJ
ad-agency/NN
sources/NNS
,/,
newcomers/NNS
to/TO
the/DT
Texas/NNP
banking/NN
market/NN
are/VBP
spending/VBG
a/DT
combined/VBN
$/$
50/CD
million/CD
this/DT
year/NN
to/TO
woo/VB
Texans/NNPS
./.
Meanwhile/RB
,/,
surviving/VBG
Texas/NNP
banking/NN
institutions/NNS
are/VBP
busily/RB
pitching/VBG
themselves/PRP
as/IN
the/DT
only/JJ
lenders/NNS
who/WP
truly/RB
care/VBP
about/IN
the/DT
state/NN
./.
The/DT
most-strident/JJ
anti-outsider/NN
sentiment/NN
among/IN
bankers/NNS
comes/VBZ
from/IN
the/DT
Independent/NNP
Bankers/NNPS
Association/NNP
of/IN
Texas/NNP
,/,
although/IN
it/PRP
's/VBZ
hard/JJ
to/TO
tell/VB
from/IN
previews/NNS
of/IN
the/DT
$/$
5/CD
million/CD
``/``
The/DT
I/PRP
's/VBZ

of/IN
Texas/NNP
''/''
TV/NN
campaign/NN
./.
Commercials/NNS
will/MD
highlight/VB
heart-rending/JJ
scenes/NNS
of/IN
Texas/NNP
and/CC
chest-swelling/JJ
,/,
ain't-it-great-to-be-a-Texan/JJ
music/NN
./.
Supporting/VBG
banks/NNS
will/MD
sign/VB
a/DT
``/``
Texas/NNP
Declaration/NNP
of/IN
Independents/NNPS
./.
''/''
But/CC
in/IN
introductory/JJ
material/NN
for/IN
the/DT
campaign/NN
,/,
the/DT
trade/NN
group/NN
urges/VBZ
members/NNS
to/TO
``/``
arm/VB
''/''
for/IN
a/DT
``/``
revolution/NN
''/''
against/IN
big/JJ
,/,
out-of-state/JJ
bank-holding/JJ
companies/NNS
./.
A/DT
video/NN
sent/VBN
to/TO
association/NN
members/NNS
,/,
featuring/VBG
shots/NNS
of/IN
the/DT
Alamo/NNP
,/,
cowboys/NNS
,/,
fajitas/NNS
and/CC
a/DT
statue/NN
of/IN
Sam/NNP
Houston/NNP
,/,
does/VBZ
n't/RB
mince/VB
words/NNS
./.
``/``
Texans/NNPS
can/MD
sniff/VB
a/DT
phony/NN
a/DT
mile/NN
away/RB
,/,
''/''
the/DT
narrator/NN
warns/VBZ
outsiders/NNS
./.
``/``
So/RB
,/,
do/VB
n't/RB
come/VB
and/CC
try/VB
to/TO
con/VB
us/PRP
with/IN
a/DT
howdy/UH
y'all/PRP
or/CC
a/DT
cowboy/NN
hat/NN
./.
''/''
Young/NNP
&/CC
Rubicam/NNP
's/POS
Pact/NNP
Young/NNP
&/CC
Rubicam/NNP
,/,
fighting/VBG
charges/NNS
that/IN
it/PRP
bribed/VBD
Jamaican/JJ
officials/NNS
to/TO
win/VB
the/DT
Jamaica/NNP
Tourist/NNP
Board/NNP
ad/NN
account/NN
in/IN
1981/CD
,/,
said/VBD
it/PRP
will/MD
no/RB
longer/RB
create/VB
the/DT
tourist/NN
board/NN
's/POS
advertising/NN
./.
In/IN
a/DT
statement/NN
,/,
Alex/NNP
Kroll/NNP
,/,
Young/NNP
&/CC
Rubicam/NNP
's/POS
chairman/NN
,/,
said/VBD
``/``
under/IN
the/DT
present/JJ
circumstances/NNS
we/PRP
it/PRP
is/VBZ
prudent/JJ
to/TO
discontinue/VB
that/DT
contract/NN
./.
''/''
Young/NNP
&/CC
Rubicam/NNP
has/VBZ
pleaded/VBN
innocent/JJ
to/TO
the/DT
charges/NNS
./.
The/DT
board/NN
would/MD
n't/RB
comment/VB
on/IN
its/PRP$
impending/JJ
search/NN
for/IN
a/DT
new/JJ
ad/NN
agency/NN
to/TO
handle/VB
its/PRP$
estimated/VBN
$/$
5/CD
million/CD
to/TO
$/$
6/CD
million/CD
account/NN
./.
Ad/NNP
Notes/NNPS
.../:
./.
NEW/NNP
ACCOUNT/NNP
:/:
Sunshine/NNP
Biscuits/NNPS
Inc./NNP
,/,
Woodbridge/NNP
,/,
N.J./NNP
,/,
awarded/VBD
its/PRP$
estimated/VBN
$/$
5/CD
million/CD
account/NN
to/TO
Waring/NNP
&/CC
LaRosa/NNP
,/,
New/NNP
York/NNP
./.
The/DT
account/NN
had/VBD
been/VBN
at/IN
Della/NNP
Femina/NNP
McNamee/NNP
WCRS/NNP
,/,
New/NNP
York/NNP
./.
MEDIA/NNP
POLICY/NNP
:/:
MacNamara/NNP
Clapp/NNP
&/CC
Klein/NNP
,/,
a/DT
small/JJ
New/NNP
York/NNP
shop/NN
,/,
is/VBZ
asking/VBG
magazine/NN
ad/NN
representatives/NNS
to/TO
tell/VB
it/PRP
when/WRB
major/JJ
advertising/NN
inserts/NNS
will/MD
run/VB
in/IN
their/PRP$
publications/NNS
./.
It/PRP
says/VBZ
it/PRP
may/MD
pull/VB
its/PRP$
clients/NNS
'/POS
ads/NNS
from/IN
those/DT
magazines/NNS
./.
COKE/NNP
ADS/NNPS
:/:
Coca-Cola/NNP
Co./NNP
said/VBD
it/PRP
produced/VBD
a/DT
new/JJ
version/NN
of/IN
its/PRP$
1971/CD
``/``
I/PRP
'd/MD
like/VB
to/TO
teach/VB
the/DT
world/NN
to/TO
sing/VB
''/''
commercial/NN
./.
The/DT
ad/NN
is/VBZ
part/NN
of/IN
Classic/NNP
Coke/NNP
's/POS
1990/CD
ad/NN
campaign/NN
,/,
with/IN
the/DT
tag/NN
line/NN
,/,
``/``
Ca/MD
n't/RB
beat/VB
the/DT
Real/NNP
Thing/NNP
./.
''/''
Basketball/NN
star/NN
Michael/NNP
Jordan/NNP
and/CC
singer/NN
Randy/NNP
Travis/NNP
have/VBP
also/RB
agreed/VBN
to/TO
appear/VB
in/IN
ads/NNS
./.
Dell/NNP
Computer/NNP
Corp./NNP
,/,
squeezed/VBN
by/IN
price/NN
pressure/NN
from/IN
its/PRP$
larger/JJR
competitors/NNS
and/CC
delays/NNS
in/IN
its/PRP$
new/JJ
product/NN
line/NN
,/,
said/VBD
its/PRP$
per-share/JJ
earnings/NNS
for/IN
fiscal/JJ
1990/CD
will/MD
be/VB
half/PDT
its/PRP$
previous/JJ
forecasts/NNS
./.
Although/IN
the/DT
personal/JJ
computer/NN
maker/NN
said/VBD
it/PRP
expects/VBZ
revenue/NN
to/TO
meet/VB
or/CC
exceed/VB
previous/JJ
projections/NNS
of/IN
$/$
385/CD
million/CD
for/IN
the/DT
year/NN
ending/VBG
Jan./NNP
28/CD
,/,
1990/CD
,/,
earnings/NNS
are/VBP
expected/VBN
to/TO
be/VB
25/CD
cents/NNS
to/TO
35/CD
cents/NNS
a/DT
share/NN
,/,
down/IN
from/IN
previous/JJ
estimates/NNS
of/IN
50/CD
cents/NNS
to/TO
60/CD
cents/NNS
./.
Earnings/NNS
for/IN
fiscal/JJ
1989/CD
were/VBD
$/$
14.4/CD
million/CD
,/,
or/CC
80/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
sales/NNS
of/IN
$/$
257.8/CD
million/CD
./.
Results/NNS
for/IN
the/DT
third/JJ
quarter/NN
ending/VBG
Oct./NNP
31/CD
,/,
are/VBP
expected/VBN
to/TO
be/VB
released/VBN
the/DT
third/JJ
week/NN
of/IN
November/NNP
,/,
according/VBG
to/TO
Michael/NNP
Dell/NNP
,/,
chairman/NN
and/CC
chief/NN
executive/NN
officer/NN
./.
Mr./NNP
Dell/NNP
said/VBD
he/PRP
does/VBZ
n't/RB
expect/VB
a/DT
loss/NN
in/IN
either/CC
the/DT
third/JJ
or/CC
fourth/JJ
quarter/NN
,/,
but/CC
said/VBD
third-quarter/JJ
earnings/NNS
could/MD
be/VB
as/RB
low/JJ
as/IN
four/CD
cents/NNS
a/DT
share/NN
./.
In/IN
the/DT
third/JJ
quarter/NN
last/JJ
year/NN
,/,
Dell/NNP
had/VBD
net/JJ
income/NN
of/IN
$/$
5/CD
million/CD
,/,
or/CC
26/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
sales/NNS
of/IN
$/$
75.2/CD
million/CD
./.
Mr./NNP
Dell/NNP
attributed/VBD
the/DT
earnings/NNS
slide/NN
to/TO
new/JJ
product/NN
delays/NNS
,/,
such/JJ
as/IN
a/DT
laptop/NN
scheduled/VBN
for/IN
September/NNP
that/WDT
wo/MD
n't/RB
be/VB
introduced/VBN
until/IN
early/JJ
November/NNP
./.
Some/DT
delays/NNS
have/VBP
been/VBN
caused/VBN
by/IN
a/DT
shortage/NN
of/IN
micoprocessors/NNS
--/:
notably/RB
Intel/NNP
Corp./NNP
's/POS
newest/JJS
chip/NN
,/,
the/DT
486/CD
--/:
but/CC
others/NNS
apparently/RB
have/VBP
been/VBN
caused/VBN
by/IN
Dell/NNP
's/POS
explosive/JJ
growth/NN
and/CC
thinly/RB
stretched/VBN
resources/NNS
./.
``/``
They/PRP
've/VBP
got/VBN
a/DT
lot/NN
of/IN
different/JJ
balls/NNS
in/IN
the/DT
air/NN
at/IN
the/DT
same/JJ
time/NN
,/,
''/''
observes/VBZ
Jim/NNP
Poyner/NNP
,/,
a/DT
computer/NN
securities/NNS
analyst/NN
with/IN
Dallas-based/JJ
William/NNP
K./NNP
Woodruff/NNP
&/CC
Co/NNP
./.
Mr./NNP
Dell/NNP
,/,
meanwhile/RB
,/,
concedes/VBZ
the/DT
company/NN
was/VBD
``/``
definitely/RB
too/RB
optimistic/JJ
''/''
in/IN
its/PRP$
expectations/NNS
./.
Product/NN
delays/NNS
,/,
however/RB
,/,
have/VBP
left/VBN
Dell/NNP
buffeted/VBN
by/IN
harsher/JJR
competition/NN
in/IN
its/PRP$
bread-and-butter/JJ
line/NN
of/IN
desktop/NN
computers/NNS
,/,
as/IN
powerhouse/NN
competitors/NNS
Compaq/NNP
Computer/NNP
Corp./NNP
and/CC
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
price/VBP
their/PRP$
PCs/NNS
more/RBR
aggressively/RB
./.
The/DT
result/NN
has/VBZ
been/VBN
thinner/JJR
margins/NNS
,/,
which/WDT
have/VBP
been/VBN
further/RB
eroded/VBN
by/IN
an/DT
ambitious/JJ
research/NN
and/CC
development/NN
effort/NN
and/CC
rapid/JJ
overseas/RB
expansion/NN
./.
Analyst/NN
James/NNP
Weil/NNP
of/IN
the/DT
Soundview/NNP
Financial/NNP
Group/NNP
believes/VBZ
Dell/NNP
's/POS
response/NN
has/VBZ
been/VBN
to/TO
place/VB
increased/VBN
emphasis/NN
on/IN
product/NN
quality/NN
,/,
``/``
in/IN
an/DT
effort/NN
to/TO
rise/VB
above/IN
some/DT
of/IN
that/DT
price/NN
pressure/NN
./.
''/''
But/CC
that/IN
has/VBZ
been/VBN
the/DT
key/NN
to/TO
Compaq/NNP
's/POS
success/NN
,/,
he/PRP
adds/VBZ
,/,
whereas/IN
Dell/NNP
carved/VBD
out/IN
its/PRP$
market/NN
niche/NN
as/IN
a/DT
direct/JJ
seller/NN
of/IN
low-cost/JJ
but/CC
reliable/JJ
computers/NNS
--/:
and/CC
it/PRP
might/MD
be/VB
too/RB
late/JJ
in/IN
the/DT
game/NN
for/IN
a/DT
shift/NN
in/IN
strategy/NN
./.
In/IN
national/JJ
over-the-counter/JJ
trading/NN
,/,
Dell/NNP
closed/VBD
yesterday/NN
at/IN
$/$
6/CD
a/DT
share/NN
,/,
down/IN
87.5/CD
cents/NNS
./.
TransAtlantic/NNP
Holdings/NNPS
PLC/NNP
,/,
a/DT
British-based/JJ
,/,
South/NNP
African-controlled/JJ
financial/JJ
services/NNS
investment/NN
group/NN
,/,
and/CC
France/NNP
's/POS
Societe/NNP
Centrale/NNP
Union/NNP
des/NNP
Assurances/NNP
de/IN
Paris/NNP
reached/VBD
an/DT
accord/NN
effectively/RB
reducing/VBG
chances/NNS
of/IN
an/DT
unfriendly/JJ
takeover/NN
for/IN
Sun/NNP
Life/NNP
Assurance/NNP
Society/NNP
PLC/NNP
./.
In/IN
a/DT
joint/JJ
statement/NN
,/,
the/DT
two/CD
companies/NNS
,/,
whose/WP$
combined/VBN
holdings/NNS
equal/JJ
52.7/CD
%/NN
of/IN
Sun/NNP
Life/NNP
's/POS
ordinary/JJ
shares/NNS
,/,
said/VBD
their/PRP$
agreement/NN
is/VBZ
aimed/VBN
at/IN
reducing/VBG
``/``
the/DT
uncertainty/NN
and/CC
instability/NN
for/IN
Sun/NNP
Life/NNP
that/WDT
has/VBZ
resulted/VBN
from/IN
two/CD
major/JJ
shareholders/NNS
owning/VBG
''/''
a/DT
controlling/VBG
interest/NN
in/IN
the/DT
company/NN
./.
TransAtlantic/NNP
,/,
whose/WP$
Transol/NNP
Investments/NNPS
Ltd./NNP
unit/NN
owns/VBZ
the/DT
largest/JJS
minority/NN
stake/NN
in/IN
Sun/NNP
Life/NNP
,/,
has/VBZ
agreed/VBN
not/RB
to/TO
make/VB
a/DT
takeover/NN
bid/NN
for/IN
the/DT
British/JJ
life/NN
insurer/NN
without/IN
the/DT
prior/JJ
consent/NN
of/IN
the/DT
French/JJ
company/NN
,/,
known/VBN
as/IN
UAP/NNP
./.
In/IN
return/NN
,/,
the/DT
agreement/NN
would/MD
force/VB
UAP/NNP
to/TO
buy/VB
TransAtlantic/NNP
's/POS
29.8/CD
%/NN
holding/NN
in/IN
Sun/NNP
Life/NNP
or/CC
sell/VB
its/PRP$
22.9/CD
%/NN
stake/NN
to/TO
TransAtlantic/NNP
at/IN
a/DT
price/NN
set/VBN
by/IN
Transatlantic/NNP
./.
Pride/NNP
Petroleum/NNP
Services/NNPS
Inc./NNP
said/VBD
it/PRP
agreed/VBD
to/TO
buy/VB
well-servicing/JJ
assets/NNS
of/IN
two/CD
companies/NNS
and/CC
expects/VBZ
to/TO
report/VB
higher/JJR
third-quarter/JJ
revenue/NN
and/CC
earnings/NNS
./.
In/IN
the/DT
year-earlier/JJ
quarter/NN
,/,
the/DT
well-servicing/JJ
contractor/NN
had/VBD
net/JJ
income/NN
of/IN
$/$
319,000/CD
,/,
or/CC
3/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
about/IN
$/$
15/CD
million/CD
./.
Results/NNS
for/IN
the/DT
earlier/JJR
quarter/NN
included/VBD
a/DT
$/$
100,000/CD
restructuring/NN
charge/NN
./.
Separately/RB
,/,
the/DT
Houston/JJ
concern/NN
said/VBD
it/PRP
signed/VBD
letters/NNS
of/IN
intent/NN
for/IN
the/DT
cash/NN
and/CC
stock/NN
purchases/NNS
of/IN
a/DT
total/NN
of/IN
29/CD
well-servicing/JJ
rigs/NNS
from/IN
two/CD
concerns/NNS
located/VBN
in/IN
New/NNP
Mexico/NNP
and/CC
California/NNP
./.
It/PRP
did/VBD
n't/RB
disclose/VB
specifics/NNS
but/CC
said/VBD
it/PRP
expects/VBZ
to/TO
complete/VB
the/DT
purchases/NNS
by/IN
Nov./NNP
1/CD
./.
Schlumberger/NNP
Ltd./NNP
,/,
New/NNP
York/NNP
,/,
reported/VBD
third-quarter/JJ
net/JJ
income/NN
edged/VBD
up/IN
as/IN
growth/NN
in/IN
its/PRP$
oil-field/JJ
services/NNS
sector/NN
offset/VBP
a/DT
decline/NN
in/IN
interest/NN
income/NN
./.
The/DT
lower/JJR
interest/NN
income/NN
occurred/VBD
because/IN
Schlumberger/NNP
spent/VBD
$/$
1.2/CD
billion/CD
buying/VBG
back/RB
its/PRP$
stock/NN
last/JJ
year/NN
./.
Net/NN
for/IN
the/DT
oil-field/NN
services/NNS
and/CC
electronic/JJ
measurements/NNS
and/CC
systems/NNS
concern/NN
rose/VBD
to/TO
$/$
114.2/CD
million/CD
,/,
or/CC
48/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
112.2/CD
million/CD
,/,
or/CC
42/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Per-share/JJ
earnings/NNS
advanced/VBD
14/CD
%/NN
because/IN
of/IN
the/DT
buy-back/NN
./.
Revenue/NN
declined/VBD
6.3/CD
%/NN
to/TO
$/$
1.11/CD
billion/CD
from/IN
$/$
1.18/CD
billion/CD
./.
But/CC
excluding/VBG
businesses/NNS
acquired/VBN
or/CC
sold/VBN
,/,
revenue/NN
was/VBD
flat/JJ
at/IN
about/IN
$/$
1.24/CD
billion/CD
./.
Nine-month/JJ
net/NN
fell/VBD
9.5/CD
%/NN
to/TO
$/$
323.4/CD
million/CD
,/,
or/CC
$/$
1.36/CD
a/DT
share/NN
,/,
from/IN
$/$
357.2/CD
million/CD
,/,
or/CC
$/$
1.32/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Revenue/NN
dropped/VBD
5.4/CD
%/NN
to/TO
$/$
3.48/CD
billion/CD
from/IN
$/$
3.68/CD
billion/CD
./.
This/DT
year/NN
's/POS
nine-month/JJ
results/NNS
include/VBP
gains/NNS
of/IN
$/$
13/CD
million/CD
,/,
or/CC
five/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
the/DT
sale/NN
of/IN
Schlumberger/NNP
's/POS
defense/NN
systems/NNS
business/NN
,/,
and/CC
$/$
22/CD
million/CD
,/,
or/CC
nine/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
an/DT
award/NN
by/IN
the/DT
IranU.S/NNP
./.
Claims/NNPS
Tribunal/NNP
./.
The/DT
year-earlier/JJ
nine/CD
months/NNS
include/VBP
a/DT
gain/NN
of/IN
$/$
35/CD
million/CD
,/,
or/CC
13/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
sale/NN
of/IN
the/DT
company/NN
's/POS
Electricity/NNP
Control/NNP
&/CC
Transformers/NNPS
division/NN
./.
NEW/NNP
ENGLAND/NNP
CRITICAL/NNP
CARE/NNP
Inc./NNP
offered/VBD
$/$
35/CD
million/CD
in/IN
convertible/JJ
subordinated/VBN
debentures/NNS
through/IN
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
and/CC
Prudential-Bache/NNP
Capital/NNP
Funding/NNP
./.
The/DT
debentures/NNS
,/,
due/JJ
in/IN
2014/CD
,/,
have/VBP
a/DT
coupon/NN
of/IN
7/CD
3\/4/CD
%/NN
,/,
payable/JJ
semiannually/RB
./.
The/DT
debentures/NNS
may/MD
be/VB
converted/VBN
into/IN
common/JJ
stock/NN
of/IN
the/DT
Westborough/NNP
,/,
Mass./NNP
,/,
home/NN
health/NN
care/NN
concern/NN
at/IN
$/$
52.50/CD
a/DT
share/NN
./.
Proceeds/NNS
will/MD
be/VB
used/VBN
for/IN
working/VBG
capital/NN
and/CC
general/JJ
corporate/JJ
purposes/NNS
,/,
including/VBG
expansion/NN
of/IN
the/DT
company/NN
's/POS
operations/NNS
./.
The/DT
French/NNP
building/NN
group/NN
Dumez/NNP
S.A./NNP
said/VBD
profit/NN
jumped/VBD
70/CD
%/NN
in/IN
the/DT
first/JJ
half/DT
of/IN
1989/CD
,/,
partly/RB
on/IN
the/DT
strength/NN
of/IN
nonrecurring/VBG
gains/NNS
from/IN
a/DT
share/NN
issue/NN
by/IN
its/PRP$
Canadian/JJ
unit/NN
./.
Dumez/NNP
said/VBD
group/NN
profit/NN
after/IN
payments/NNS
to/TO
minority/NN
interests/NNS
rose/VBD
to/TO
252/CD
million/CD
francs/NNS
$/$
40.1/CD
million/CD
148/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
Revenue/NN
rose/VBD
40/CD
%/NN
to/TO
13.32/CD
billion/CD
francs/NNS
from/IN
9.53/CD
billion/CD
./.
The/DT
group/NN
noted/VBD
that/IN
75/CD
million/CD
francs/NNS
of/IN
the/DT
advance/NN
reflected/VBD
a/DT
one-time/JJ
gain/NN
from/IN
the/DT
June/NNP
offering/NN
by/IN
its/PRP$
United/NNP
Westburne/NNP
unit/NN
in/IN
Canada/NNP
./.
It/PRP
did/VBD
n't/RB
say/VB
if/IN
its/PRP$
year-earlier/JJ
results/NNS
were/VBD
influenced/VBN
significantly/RB
by/IN
nonrecurring/VBG
elements/NNS
./.
For/IN
all/DT
of/IN
1988/CD
,/,
Dumez/NNP
had/VBD
group/NN
profit/NN
of/IN
452/CD
million/CD
francs/NNS
after/IN
payment/NN
to/TO
minority/NN
interests/NNS
./.
Revenue/NN
was/VBD
21.98/CD
billion/CD
francs/NNS
./.
The/DT
group/NN
has/VBZ
n't/RB
forecast/VBN
full-year/JJ
earnings/NNS
for/IN
1989/CD
,/,
although/IN
it/PRP
said/VBD
that/IN
its/PRP$
first-half/JJ
results/NNS
are/VBP
n't/RB
a/DT
good/JJ
indication/NN
because/IN
of/IN
one-time/JJ
elements/NNS
and/CC
the/DT
seasonal/JJ
nature/NN
of/IN
its/PRP$
operations/NNS
./.
Tuesday/NNP
's/POS
earthquake/NN
will/MD
depress/VB
local/JJ
real-estate/NN
values/NNS
in/IN
the/DT
short/JJ
term/NN
and/CC
force/VB
companies/NNS
to/TO
reconsider/VB
expanding/VBG
in/IN
or/CC
relocating/VBG
to/TO
the/DT
Bay/NNP
Area/NNP
and/CC
California/NNP
,/,
real-estate/NN
and/CC
relocation/NN
specialists/NNS
said/VBD
./.
Few/JJ
specialists/NNS
said/VBD
they/PRP
expect/VBP
the/DT
quake/NN
to/TO
have/VB
much/RB
of/IN
an/DT
effect/NN
on/IN
most/JJS
California/NNP
property/NN
values/NNS
./.
But/CC
real-estate/NN
experts/NNS
and/CC
brokers/NNS
said/VBD
the/DT
quake/NN
undoubtedly/RB
will/MD
drag/VB
down/IN
prices/NNS
in/IN
neighborhoods/NNS
built/VBN
on/IN
less/JJR
stable/JJ
ground/NN
,/,
especially/RB
in/IN
the/DT
Bay/NNP
Area/NNP
./.
``/``
California/NNP
prices/NNS
were/VBD
already/RB
coming/VBG
down/IN
./.
This/DT
is/VBZ
n't/RB
going/VBG
to/TO
help/VB
,/,
''/''
said/VBD
Kenneth/NNP
T./NNP
Rosen/NNP
,/,
chairman/NN
of/IN
the/DT
Center/NNP
for/IN
Real/NNP
Estate/NNP
and/CC
Urban/NNP
Economics/NNP
at/IN
the/DT
University/NNP
of/IN
California/NNP
at/IN
Berkeley/NNP
./.
State/NN
housing/NN
prices/NNS
,/,
at/IN
a/DT
median/NN
$/$
201,028/CD
,/,
have/VBP
declined/VBN
in/IN
recent/JJ
months/NNS
because/IN
of/IN
potential/JJ
buyers/NNS
'/POS
inability/NN
to/TO
afford/VB
homes/NNS
./.
Mr./NNP
Rosen/NNP
,/,
among/IN
others/NNS
,/,
suggested/VBD
that/IN
the/DT
quake/NN
,/,
the/DT
strongest/JJS
since/IN
the/DT
1906/CD
temblor/NN
that/WDT
struck/VBD
San/NNP
Francisco/NNP
,/,
will/MD
in/IN
the/DT
short/JJ
term/NN
create/VB
a/DT
two-tier/JJ
price/NN
system/NN
for/IN
quake-prone/JJ
communities/NNS
,/,
with/IN
dwellings/NNS
built/VBN
on/IN
sturdy/JJ
ground/NN
likely/JJ
to/TO
demand/VB
higher/JJR
prices/NNS
./.
One/CD
San/NNP
Francisco/NNP
neighborhood/NN
likely/JJ
to/TO
test/VB
Mr./NNP
Rosen/NNP
's/POS
theory/NN
soon/RB
is/VBZ
the/DT
city/NN
's/POS
fashionable/JJ
Marina/NNP
district/NN
,/,
which/WDT
boasts/VBZ
some/DT
of/IN
the/DT
highest/JJS
home/NN
prices/NNS
in/IN
the/DT
state/NN
./.
The/DT
district/NN
,/,
built/VBN
on/IN
landfill/NN
,/,
suffered/VBN
heavy/JJ
quake/NN
damage/NN
,/,
including/VBG
collapsed/VBN
buildings/NNS
./.
Yesterday/NN
,/,
the/DT
city/NN
demolished/VBD
two/CD
dwellings/NNS
in/IN
the/DT
district/NN
because/IN
of/IN
severe/JJ
structural/JJ
damage/NN
and/CC
said/VBD
as/RB
many/JJ
as/IN
19/CD
of/IN
the/DT
district/NN
's/POS
350/CD
dwellings/NNS
might/MD
have/VB
to/TO
be/VB
razed/VBN
./.
Brokers/NNS
agreed/VBD
with/IN
the/DT
two-tier/JJ
price/NN
theory/NN
./.
``/``
My/PRP$
gut/NN
feeling/NN
is/VBZ
that/IN
the/DT
Marina/NNP
properties/NNS
will/MD
be/VB
affected/VBN
,/,
''/''
said/VBD
Grace/NNP
Perkins/NNP
,/,
senior/JJ
vice/NN
president/NN
at/IN
Grubb/NNP
&/CC
Ellis/NNP
Residential/NNP
Brokerage/NNP
Inc/NNP
./.
Neither/CC
she/PRP
nor/CC
other/JJ
real-estate/NN
executives/NNS
and/CC
brokers/NNS
could/MD
project/VB
how/WRB
much/JJ
less/JJR
Marina/NNP
properties/NNS
might/MD
bring/VB
,/,
but/CC
she/PRP
said/VBD
the/DT
two-tier/JJ
price/NN
structure/NN
would/MD
affect/VB
prices/NNS
``/``
for/IN
a/DT
while/NN
./.
''/''
Mr./NNP
Rosen/NNP
said/VBD
the/DT
quake/NN
will/MD
revive/VB
consumer/NN
interest/NN
in/IN
a/DT
little-publicized/JJ
1972/CD
state/NN
law/NN
that/WDT
requires/VBZ
brokers/NNS
to/TO
disclose/VB
to/TO
potential/JJ
buyers/NNS
how/WRB
close/JJ
a/DT
property/NN
sits/VBZ
to/TO
a/DT
fault/NN
line/NN
./.
Because/IN
of/IN
the/DT
size/NN
of/IN
the/DT
California/NNP
market/NN
,/,
few/JJ
relocation/NN
specialists/NNS
expect/VBP
a/DT
widespread/JJ
corporate/JJ
flight/NN
in/IN
the/DT
quake/NN
's/POS
aftermath/NN
./.
But/CC
they/PRP
said/VBD
the/DT
quake/NN
will/MD
force/VB
some/DT
companies/NNS
to/TO
relocate/VB
or/CC
expand/VB
part/NN
or/CC
all/DT
of/IN
their/PRP$
operations/NNS
outside/IN
the/DT
state/NN
./.
``/``
What/WP
you/PRP
're/VBP
going/VBG
to/TO
get/VB
is/VBZ
`/``
We/PRP
do/VBP
n't/RB
want/VB
to/TO
put/VB
all/DT
of/IN
our/PRP$
eggs/NNS
in/IN
one/CD
basket/NN
'/''
theory/NN
,/,
''/''
said/VBD
James/NNP
H./NNP
Renzas/NNP
,/,
president/NN
of/IN
Location/NNP
Management/NNP
Services/NNPS
Inc./NNP
,/,
a/DT
Palo/NNP
Alto/NNP
,/,
Calif./NNP
,/,
relocation/NN
concern/NN
./.
Mr./NNP
Renzas/NNP
,/,
among/IN
others/NNS
,/,
said/VBD
the/DT
quake/NN
will/MD
prod/VB
companies/NNS
in/IN
certain/JJ
industries/NNS
,/,
like/IN
semiconductors/NNS
,/,
computers/NNS
and/CC
aerospace/NN
,/,
to/TO
consider/VB
moving/VBG
operations/NNS
that/WDT
involve/VBP
particularly/RB
sensitive/JJ
machinery/NN
to/TO
locations/NNS
outside/IN
California/NNP
./.
Because/IN
of/IN
the/DT
quake/NN
threat/NN
,/,
``/``
some/DT
firms/NNS
have/VBP
evaluated/VBN
what/WP
the/DT
cost/NN
is/VBZ
to/TO
shore/VB
up/IN
their/PRP$
buildings/NNS
and/CC
compared/VBN
it/PRP
with/IN
the/DT
cost/NN
of/IN
building/VBG
it/PRP
elswehere/NN
,/,
''/''
he/PRP
said/VBD
./.
One/CD
Southern/NNP
California/NNP
aerospace/NN
firm/NN
,/,
for/IN
example/NN
,/,
two/CD
months/NNS
ago/IN
asked/VBD
Location/NNP
Management/NNP
to/TO
compare/VB
the/DT
costs/NNS
of/IN
reinforcing/VBG
its/PRP$
current/JJ
building/NN
against/IN
earthquakes/NNS
with/IN
the/DT
cost/NN
of/IN
building/VBG
a/DT
new/JJ
structure/NN
elsewhere/RB
./.
A/DT
new/JJ
dwelling/NN
would/MD
cost/VB
$/$
21/CD
million/CD
,/,
Location/NNP
Management/NNP
found/VBD
,/,
compared/VBN
with/IN
$/$
22/CD
million/CD
to/TO
make/VB
the/DT
present/JJ
building/NN
earthquake-proof/JJ
./.
The/DT
company/NN
,/,
Mr./NNP
Renzas/NNP
said/VBD
,/,
has/VBZ
n't/RB
yet/CC
determined/VBN
what/WP
to/TO
do/VB
./.
NATIONWIDE/NNP
HEALTH/NNP
PROPERTIES/NNPS
,/,
Pasadena/NNP
,/,
Calif./NNP
,/,
said/VBD
it/PRP
would/MD
n't/RB
pay/VB
its/PRP$
fourth-quarter/JJ
dividend/NN
,/,
despite/IN
a/DT
44/CD
%/NN
increase/NN
in/IN
third-quarter/JJ
earnings/NNS
,/,
to/TO
$/$
3.5/CD
million/CD
,/,
or/CC
42/CD
cents/NNS
a/DT
share/NN
./.
Net/JJ
income/NN
included/VBD
a/DT
gain/NN
of/IN
$/$
708,000/CD
on/IN
asset/NN
sales/NNS
,/,
the/DT
real/JJ
estate/NN
investment/NN
trust/NN
said/VBD
./.
A/DT
year/NN
earlier/RBR
,/,
Nationwide/NNP
Health/NNP
earned/VBD
$/$
2.4/CD
million/CD
,/,
or/CC
29/CD
cents/NNS
a/DT
share/NN
./.
Revenue/NN
rose/VBD
3/CD
%/NN
to/TO
$/$
9/CD
million/CD
from/IN
$/$
8.8/CD
million/CD
./.
Nationwide/NNP
Health/NNP
said/VBD
that/IN
although/IN
it/PRP
has/VBZ
the/DT
cash/NN
to/TO
cover/VB
the/DT
25-cent-a-share/JJ
dividend/NN
,/,
its/PRP$
banks/NNS
have/VBP
denied/VBN
the/DT
company/NN
's/POS
request/NN
to/TO
pay/VB
it/PRP
because/IN
the/DT
trust/NN
has/VBZ
n't/RB
met/VBN
certain/JJ
terms/NNS
./.
Nationwide/NNP
Health/NNP
said/VBD
it/PRP
has/VBZ
``/``
numerous/JJ
financing/NN
activities/NNS
''/''
under/IN
way/NN
to/TO
remedy/VB
the/DT
problem/NN
and/CC
will/MD
make/VB
up/IN
the/DT
dividend/NN
payment/NN
later/RB
if/IN
possible/JJ
./.
Aussedat/NNP
Rey/NNP
S.A./NNP
,/,
a/DT
French/JJ
paper/NN
producer/NN
,/,
said/VBD
it/PRP
concluded/VBD
an/DT
agreement/NN
with/IN
Japan/NNP
's/POS
Fuji/NNP
Photo/NNP
Film/NNP
Co./NNP
that/WDT
will/MD
allow/VB
Aussedat/NNP
Rey/NNP
to/TO
manufacture/VB
and/CC
sell/VB
thermal/JJ
paper/NN
using/VBG
Fuji/NNP
technology/NN
./.
Aussedat/NNP
Rey/NNP
is/VBZ
a/DT
leading/VBG
French/JJ
maker/NN
of/IN
copying/NN
and/CC
electronic/JJ
printing/NN
paper/NN
./.
Thermal/JJ
paper/NN
is/VBZ
used/VBN
in/IN
facsimile/JJ
machines/NNS
./.
Terms/NNS
of/IN
the/DT
agreement/NN
were/VBD
n't/RB
disclosed/VBN
./.
Aussedat/NNP
Rey/NNP
's/POS
move/NN
follows/VBZ
similar/JJ
technology-licensing/JJ
agreements/NNS
between/IN
Japanese/JJ
producers/NNS
of/IN
thermal/JJ
paper/NN
and/CC
European/JJ
paper/NN
groups/NNS
./.
W.R./NNP
Grace/NNP
&/CC
Co./NNP
,/,
New/NNP
York/NNP
,/,
said/VBD
its/PRP$
earnings/NNS
for/IN
the/DT
third/JJ
quarter/NN
nearly/RB
doubled/VBD
as/IN
a/DT
result/NN
of/IN
a/DT
$/$
114.4/CD
million/CD
pre-tax/JJ
gain/NN
from/IN
restructuring/VBG
its/PRP$
energy/NN
operations/NNS
and/CC
other/JJ
adjustments/NNS
./.
Net/JJ
income/NN
rose/VBD
to/TO
$/$
97.9/CD
million/CD
,/,
or/CC
$/$
1.15/CD
a/DT
share/NN
,/,
from/IN
$/$
50.5/CD
million/CD
,/,
or/CC
60/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
increased/VBD
7/CD
%/NN
to/TO
$/$
1.49/CD
billion/CD
from/IN
$/$
1.39/CD
billion/CD
./.
The/DT
gain/NN
resulted/VBD
from/IN
the/DT
sale/NN
of/IN
Grace/NNP
Equipment/NNP
Co./NNP
,/,
the/DT
initial/JJ
public/JJ
offering/NN
of/IN
a/DT
one-sixth/JJ
interest/NN
in/IN
Grace/NNP
Energy/NNP
Corp./NNP
and/CC
an/DT
adjustment/NN
in/IN
the/DT
carrying/VBG
value/NN
of/IN
certain/JJ
natural/JJ
resource/NN
assets/NNS
not/RB
part/NN
of/IN
Grace/NNP
Energy/NNP
./.
The/DT
international/JJ
specialty/NN
chemical/NN
company/NN
's/POS
earnings/NNS
were/VBD
hurt/VBN
by/IN
an/DT
accrual/NN
for/IN
stock-appreciation/NN
rights/NNS
that/WDT
reflected/VBD
a/DT
19/CD
%/NN
increase/NN
in/IN
the/DT
stock/NN
price/NN
,/,
and/CC
higher/JJR
interest/NN
expenses/NNS
./.
Anglo/NNP
American/NNP
Corp./NNP
of/IN
South/NNP
Africa/NNP
Ltd./NNP
said/VBD
the/DT
third-quarter/JJ
combined/VBN
profit/NN
of/IN
its/PRP$
six/CD
gold/NN
mines/NNS
dropped/VBD
8.5/CD
%/NN
from/IN
the/DT
previous/JJ
quarter/NN
./.
Total/JJ
net/JJ
income/NN
fell/VBD
to/TO
471.6/CD
million/CD
rand/NN
$/$
178.0/CD
million/CD
515.4/CD
million/CD
rand/NN
in/IN
the/DT
June/NNP
quarter/NN
./.
Total/JJ
gold/NN
production/NN
by/IN
all/DT
six/CD
mines/NNS
rose/VBD
4/CD
%/NN
to/TO
63,971/CD
kilograms/NNS
from/IN
61,493/CD
kilograms/NNS
in/IN
the/DT
previous/JJ
quarter/NN
./.
Doman/NNP
Industries/NNPS
Ltd./NNP
said/VBD
it/PRP
increased/VBD
its/PRP$
stake/NN
in/IN
Western/NNP
Forest/NNP
Products/NNPS
Ltd./NNP
to/TO
56/CD
%/NN
from/IN
22/CD
%/NN
,/,
through/IN
a/DT
two-step/JJ
transaction/NN
valued/VBN
at/IN
137/CD
million/CD
Canadian/JJ
dollars/NNS
$/$
US116.7/CD
million/CD
Doman/NNP
is/VBZ
based/VBN
in/IN
Duncan/NNP
,/,
British/NNP
Columbia/NNP
./.
The/DT
company/NN
,/,
founded/VBN
and/CC
controlled/VBN
by/IN
Harbanse/NNP
Doman/NNP
,/,
its/PRP$
chairman/NN
and/CC
president/NN
,/,
said/VBD
the/DT
purchase/NN
would/MD
make/VB
it/PRP
Canada/NNP
's/POS
10th/JJ
largest/JJS
forest/NN
products/NNS
company/NN
./.
Under/IN
terms/NNS
of/IN
the/DT
transaction/NN
,/,
which/WDT
was/VBD
proposed/VBN
in/IN
June/NNP
,/,
Doman/NNP
said/VBD
it/PRP
acquired/VBD
International/NNP
Forest/NNP
Products/NNPS
Ltd./NNP
's/POS
22/CD
%/NN
stake/NN
in/IN
Western/NNP
Forest/NNP
,/,
and/CC
Western/NNP
Forest/NNP
,/,
in/IN
a/DT
related/VBN
transaction/NN
,/,
bought/VBD
back/RB
a/DT
22/CD
%/NN
interest/NN
in/IN
the/DT
company/NN
from/IN
Fletcher/NNP
Challenge/NNP
Canada/NNP
Ltd/NNP
./.
The/DT
Fletcher/NNP
Challenge/NNP
Canada/NNP
stake/NN
was/VBD
then/RB
canceled/VBN
,/,
Doman/NNP
said/VBD
,/,
raising/VBG
Doman/NNP
's/POS
interest/NN
in/IN
Western/NNP
Forest/NNP
to/TO
56/CD
%/NN
./.
Doman/NNP
said/VBD
it/PRP
was/VBD
also/RB
granted/VBN
an/DT
option/NN
to/TO
acquire/VB
the/DT
remaining/VBG
44/CD
%/NN
interest/NN
in/IN
Western/NNP
Forest/NNP
,/,
which/WDT
is/VBZ
currently/RB
held/VBN
by/IN
two/CD
Canadian/JJ
banks/NNS
./.
International/NNP
Forest/NNP
,/,
Western/NNP
Forest/NNP
,/,
and/CC
Fletcher/NNP
Challenge/NNP
Canada/NNP
are/VBP
Vancouver-based/JJ
forest/NN
products/NNS
concerns/NNS
./.
The/DT
Canadian/JJ
government/NN
introduced/VBD
in/IN
the/DT
House/NNP
of/IN
Commons/NNP
legislation/NN
to/TO
extend/VB
federal/JJ
regulatory/JJ
authority/NN
over/IN
provincial/JJ
government-owned/JJ
telephone/NN
utilities/NNS
in/IN
Alberta/NNP
,/,
Saskatchewan/NNP
and/CC
Manitoba/NNP
./.
The/DT
legislation/NN
would/MD
open/VB
the/DT
way/NN
for/IN
more/JJR
telephone/NN
services/NNS
and/CC
more/JJR
competition/NN
in/IN
the/DT
telephone/NN
business/NN
in/IN
the/DT
three/CD
provinces/NNS
,/,
federal/JJ
officials/NNS
said/VBD
./.
The/DT
federal/JJ
government/NN
initiative/NN
follows/VBZ
a/DT
recent/JJ
Canadian/NNP
Supreme/NNP
Court/NNP
decision/NN
that/WDT
held/VBD
that/IN
the/DT
major/JJ
telephone/NN
companies/NNS
in/IN
Alberta/NNP
,/,
Saskatchewan/NNP
and/CC
Manitoba/NNP
and/CC
in/IN
the/DT
Atlantic/JJ
coast/NN
provinces/NNS
were/VBD
interprovincial/JJ
undertakings/NNS
and/CC
subject/JJ
to/TO
federal/JJ
legislative/JJ
authority/NN
./.
Prior/RB
to/TO
the/DT
ruling/NN
the/DT
federal/JJ
government/NN
had/VBD
regulated/VBN
only/RB
the/DT
telephone/NN
companies/NNS
in/IN
Quebec/NNP
,/,
Ontario/NNP
,/,
British/NNP
Columbia/NNP
and/CC
the/DT
Northwest/NNP
Territories/NNPS
./.
The/DT
governments/NNS
of/IN
Alberta/NNP
,/,
Saskatchewan/NNP
and/CC
Manitoba/NNP
have/VBP
strongly/RB
opposed/VBN
federal/JJ
regulation/NN
of/IN
their/PRP$
telephone/NN
companies/NNS
./.
The/DT
extension/NN
of/IN
federal/JJ
regulatory/JJ
authority/NN
over/IN
telephone/NN
utilities/NNS
in/IN
the/DT
Atlantic/JJ
provinces/NNS
has/VBZ
n't/RB
required/VBN
special/JJ
legislation/NN
because/IN
they/PRP
are/VBP
investor-owned/JJ
./.
Amdura/NNP
Corp./NNP
said/VBD
its/PRP$
bank/NN
group/NN
,/,
led/VBN
by/IN
Chicago-based/JJ
Continental/NNP
Bank/NNP
,/,
agreed/VBD
to/TO
extend/VB
its/PRP$
$/$
40/CD
million/CD
bridge/NN
loan/NN
until/IN
March/NNP
31/CD
,/,
1990/CD
,/,
and/CC
gave/VBD
it/PRP
a/DT
new/JJ
$/$
30/CD
million/CD
credit/NN
line/NN
./.
Under/IN
terms/NNS
of/IN
the/DT
loan/NN
agreement/NN
,/,
Amdura/NNP
said/VBD
it/PRP
will/MD
omit/VB
the/DT
next/JJ
quarterly/JJ
dividends/NNS
on/IN
its/PRP$
Series/NNPS
A/NNP
,/,
B/NNP
,/,
C/NNP
and/CC
D/NNP
preferred/VBN
shares/NNS
,/,
which/WDT
are/VBP
due/JJ
Nov./NNP
15/CD
./.
Since/IN
the/DT
preferred/VBN
stock/NN
is/VBZ
cumulative/JJ
,/,
Amdura/NNP
said/VBD
it/PRP
will/MD
pay/VB
all/DT
omitted/VBN
dividends/NNS
,/,
which/WDT
range/VBP
from/IN
$/$
1.19/CD
to/TO
$/$
4.88/CD
a/DT
share/NN
,/,
when/WRB
debt-reduction/NN
requirements/NNS
have/VBP
been/VBN

met/VBN
./.
Amdura/NNP
's/POS
bridge/NN
loan/NN
,/,
part/NN
of/IN
the/DT
financing/NN
for/IN
Amdura/NNP
's/POS
acquisition/NN
of/IN
CoastAmerica/NNP
in/IN
December/NNP
1988/CD
,/,
was/VBD
to/TO
come/VB
due/JJ
next/JJ
Friday/NNP
./.
The/DT
company/NN
's/POS
new/JJ
management/NN
,/,
which/WDT
took/VBD
control/NN
of/IN
Amdura/NNP
's/POS
board/NN
after/IN
a/DT
consent/NN
solicitation/NN
last/JJ
month/NN
,/,
wanted/VBD
to/TO
extend/VB
the/DT
loan/NN
while/IN
it/PRP
tries/VBZ
to/TO
sell/VB
two/CD
units/NNS
./.
Proceeds/NNS
from/IN
those/DT
sales/NNS
will/MD
be/VB
used/VBN
to/TO
reduce/VB
debt/NN
./.
Amdura/NNP
,/,
a/DT
Denver/NNP
hardware/NN
and/CC
automotive/JJ
distributor/NN
,/,
said/VBD
the/DT
new/JJ
credit/NN
agreement/NN
will/MD
provide/VB
the/DT
working/VBG
capital/NN
needed/VBN
to/TO
meet/VB
ongoing/JJ
requirements/NNS
./.
Three/CD
savings-and-loan/NN
institutions/NNS
in/IN
Kansas/NNP
and/CC
Texas/NNP
were/VBD
added/VBN
to/TO
the/DT
Resolution/NNP
Trust/NNP
Corp./NNP
's/POS
conservatorship/NN
program/NN
after/IN
federal/JJ
regulators/NNS
declared/VBD
the/DT
thrifts/NNS
insolvent/JJ
and/CC
named/VBD
the/DT
RTC/NNP
their/PRP$
receiver/NN
./.
The/DT
deposits/NNS
,/,
assets/NNS
and/CC
certain/JJ
liabilities/NNS
of/IN
the/DT
three/CD
thrifts/NNS
were/VBD
transferred/VBN
to/TO
newly/RB
chartered/VBN
federal/JJ
mutual/JJ
institutions/NNS
./.
The/DT
three/CD
institutions/NNS
are/VBP
:/:
Mid/NNP
Kansas/NNP
Federal/NNP
Savings/NNP
&/CC
Loan/NNP
Association/NNP
,/,
Wichita/NNP
,/,
which/WDT
had/VBD
$/$
830.5/CD
million/CD
in/IN
assets/NNS
;/:
Valley/NNP
Federal/NNP
Savings/NNP
&/CC
Loan/NNP
Association/NNP
of/IN
McAllen/NNP
,/,
McAllen/NNP
,/,
Texas/NNP
,/,
with/IN
$/$
582.6/CD
million/CD
in/IN
assets/NNS
;/:
and/CC
Surety/NNP
Savings/NNP
Association/NNP
,/,
El/NNP
Paso/NNP
,/,
with/IN
$/$
309.3/CD
million/CD
in/IN
assets/NNS
./.
The/DT
three/CD
insolvent/JJ
thrifts/NNS
will/MD
maintain/VB
normal/JJ
business/NN
hours/NNS
and/CC
operations/NNS
under/IN
RTC-appointed/JJ
managing/VBG
agents/NNS
,/,
while/IN
the/DT
RTC/NNP
tries/VBZ
to/TO
negotiate/VB
permanent/JJ
resolutions/NNS
./.
Separately/RB
,/,
Century/NNP
Bank/NNP
,/,
Phoenix/NNP
,/,
Ariz./NNP
,/,
was/VBD
closed/VBN
by/IN
Arizona/NNP
banking/NN
officials/NNS
./.
The/DT
Federal/NNP
Deposit/NNP
Insurance/NNP
Corp./NNP
approved/VBD
the/DT
assumption/NN
of/IN
Century/NNP
's/POS
deposits/NNS
and/CC
fully/RB
secured/VBN
liabilities/NNS
by/IN
a/DT
newly/RB
chartered/VBN
subsidiary/NN
of/IN
Valley/NNP
Capital/NNP
Corp./NNP
,/,
Las/NNP
Vegas/NNP
./.
The/DT
new/JJ
institution/NN
is/VBZ
also/RB
called/VBN
Century/NNP
Bank/NNP
,/,
and/CC
the/DT
failed/VBN
bank/NN
's/POS
five/CD
offices/NNS
will/MD
reopen/VB
today/NN
./.
The/DT
failed/VBN
bank/NN
had/VBD
assets/NNS
of/IN
about/IN
$/$
129.6/CD
million/CD
./.
The/DT
newly/RB
chartered/VBN
bank/NN
will/MD
assume/VB
about/IN
$/$
125.7/CD
million/CD
in/IN
10,300/CD
deposit/NN
accounts/NNS
and/CC
pay/VB
the/DT
FDIC/NNP
a/DT
purchase/NN
premium/NN
of/IN
$/$
2.9/CD
million/CD
./.
It/PRP
also/RB
will/MD
buy/VB
about/IN
$/$
91.7/CD
million/CD
of/IN
assets/NNS
,/,
and/CC
the/DT
FDIC/NNP
will/MD
advance/VB
$/$
31.8/CD
million/CD
to/TO
the/DT
assuming/VBG
bank/NN
./.
Lonrho/NNP
PLC/NNP
of/IN
Britain/NNP
is/VBZ
to/TO
come/VB
to/TO
the/DT
rescue/NN
of/IN
the/DT
French/JJ
distribution/NN
group/NN
Societe/NNP
Commerciale/NNP
de/IN
l'Ouest/NNP
Africaine/NNP
in/IN
an/DT
operation/NN
that/WDT
has/VBZ
been/VBN
engineered/VBN
with/IN
the/DT
Paribas/NNP
financial/JJ
group/NN
,/,
Societe/NNP
Commerciale/NNP
's/POS
main/JJ
shareholder/NN
./.
The/DT
announcement/NN
came/VBD
as/IN
Societe/NNP
Commerciale/NNP
,/,
a/DT
trading/NN
company/NN
with/IN
activities/NNS
in/IN
more/RBR
than/IN
40/CD
countries/NNS
,/,
reported/VBD
a/DT
loss/NN
of/IN
320.5/CD
million/CD
francs/NNS
$/$
51/CD
million/CD
the/DT
first/JJ
six/CD
months/NNS
of/IN
this/DT
year/NN
,/,
partly/RB
because/IN
of/IN
provisions/NNS
on/IN
future/JJ
losses/NNS
./.
The/DT
rescue/NN
operation/NN
will/MD
consist/VB
of/IN
a/DT
capital/NN
boost/NN
for/IN
Societe/NNP
Commerciale/NNP
of/IN
one/CD
billion/CD
francs/NNS
through/IN
issues/NNS
of/IN
new/JJ
shares/NNS
and/CC
convertible/JJ
bonds/NNS
./.
Cie/NNP
./.
Financiere/NNP
de/NNP
Paribas/NNP
said/VBD
it/PRP
intends/VBZ
to/TO
transfer/VB
its/PRP$
30/CD
%/NN
shareholding/NN
in/IN
Societe/NNP
Commerciale/NNP
to/TO
a/DT
new/JJ
company/NN
which/WDT
will/MD
be/VB
jointly/RB
owned/VBN
with/IN
Lonrho/NNP
./.
This/DT
will/MD
give/VB
Paribas/NNP
and/CC
Lonrho/NNP
joint/JJ
control/NN
of/IN
Societe/NNP
Commerciale/NNP
./.
Paribas/NNP
said/VBD
Lonrho/NNP
will/MD
participate/VB
in/IN
the/DT
forthcoming/JJ
capital/NN
boost/NN
for/IN
Societe/NNP
Commerciale/NNP
./.
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
and/CC
MCA/NNP
Inc./NNP
said/VBD
they/PRP
agreed/VBD
to/TO
sell/VB
their/PRP$
Discovision/NNP
Associates/NNPS
joint/JJ
venture/NN
to/TO
U.S./NNP
units/NNS
of/IN
Pioneer/NNP
Electronic/NNP
Corp./NNP
for/IN
$/$
200/CD
million/CD
./.
The/DT
joint/JJ
venture/NN
licenses/VBZ
a/DT
portfolio/NN
of/IN
about/IN
1,400/CD
patents/NNS
and/CC
patent/NN
applications/NNS
relating/VBG
to/TO
optical-disk/JJ
recording/NN
technology/NN
./.
IBM/NNP
and/CC
MCA/NNP
formed/VBD
Discovision/NNP
in/IN
1979/CD
to/TO
make/VB
laser-read/JJ
optical/JJ
products/NNS
./.
But/CC
the/DT
partners/NNS
did/VBD
n't/RB
believe/VB
the/DT
market/NN
for/IN
the/DT
systems/NNS
was/VBD
developing/VBG
as/RB
rapidly/RB
as/IN
they/PRP
had/VBD
hoped/VBN
./.
After/IN
reportedly/RB
investing/VBG
$/$
100/CD
million/CD
in/IN
the/DT
business/NN
,/,
Discovision/NNP
ceased/VBD
manufacturing/NN
operations/NNS
in/IN
1982/CD
and/CC
sold/VBD
many/JJ
of/IN
its/PRP$
assets/NNS
to/TO
Tokyo-based/JJ
Pioneer/NNP
,/,
among/IN
others/NNS
./.
Discovision/NNP
now/RB
has/VBZ
world-wide/JJ
license/NN
agreements/NNS
with/IN
major/JJ
manufacturers/NNS
covering/VBG
CD/NN
audio/NN
disks/NNS
,/,
audio/JJ
disk/NN
players/NNS
,/,
videodisks/NNS
and/CC
videodisk/NN
players/NNS
./.
It/PRP
also/RB
licenses/VBZ
optically/RB
based/VBN
data/NNS
storage/NN
and/CC
retrieval/NN
devices/NNS
./.
James/NNP
N./NNP
Fiedler/NNP
,/,
president/NN
of/IN
Discovision/NNP
and/CC
a/DT
vice/NN
president/NN
of/IN
MCA/NNP
,/,
said/VBD
that/IN
IBM/NNP
and/CC
MCA/NNP
had/VBD
n't/RB
planned/VBN
to/TO
sell/VB
the/DT
joint/JJ
venture/NN
,/,
which/WDT
is/VBZ
now/RB
profitable/JJ
,/,
but/CC
that/IN
Pioneer/NNP
approached/VBD
Discovision/NNP
earlier/RBR
this/DT
year/NN
./.
He/PRP
said/VBD
it/PRP
is/VBZ
n't/RB
certain/JJ
whether/IN
Discovision/NNP
's/POS
current/JJ
management/NN
will/MD
remain/VB
when/WRB
Pioneer/NNP
buys/VBZ
the/DT
company/NN
./.
The/DT
agreement/NN
is/VBZ
contingent/JJ
on/IN
certain/JJ
government/NN
approvals/NNS
and/CC
should/MD
be/VB
completed/VBN
later/RB
this/DT
year/NN
./.
Tokyo/NNP
stocks/NNS
closed/VBD
higher/JJR
in/IN
moderately/RB
active/JJ
but/CC
directionless/JJ
trading/NN
as/IN
the/DT
recent/JJ
anxiety/NN
in/IN
world/NN
stock/NN
markets/NNS
continued/VBD
to/TO
fade/VB
./.
London/NNP
shares/NNS
also/RB
closed/VBN
firmer/JJR
in/IN
thin/JJ
trading/NN
driven/VBN
largely/RB
by/IN
technical/JJ
factors/NNS
and/CC
support/NN
from/IN
a/DT
new/JJ
Wall/NNP
Street/NNP
rally/NN
./.
Prices/NNS
also/RB
rose/VBD
on/IN
almost/RB
every/DT
other/JJ
major/JJ
exchange/NN
in/IN
Europe/NNP
,/,
Asia/NNP
and/CC
the/DT
Pacific/NNP
./.
Tokyo/NNP
's/POS
Nikkei/NNP
index/NN
of/IN
225/CD
issues/NNS
,/,
which/WDT
gained/VBD
111.48/CD
points/NNS
Wednesday/NNP
,/,
climbed/VBD
266.66/CD
,/,
or/CC
0.76/CD
%/NN
,/,
to/TO
35374.22/CD
./.
Volume/NN
on/IN
the/DT
first/JJ
section/NN
was/VBD
estimated/VBN
at/IN
800/CD
million/CD
shares/NNS
,/,
compared/VBN
with/IN
841/CD
million/CD
Wednesday/NNP
./.
Winners/NNS
outnumbered/VBD
losers/NNS
645-293/CD
,/,
with/IN
186/CD
issues/NNS
unchanged/JJ
./.
In/IN
early/RB
trading/NN
in/IN
Tokyo/NNP
Friday/NNP
,/,
the/DT
Nikkei/NNP
index/NN
rose/VBD
170.65/CD
points/NNS
,/,
to/TO
35544.87/CD
./.
On/IN
Thursday/NNP
,/,
the/DT
Tokyo/NNP
Stock/NNP
Price/NNP
Index/NNP
of/IN
all/DT
issues/NNS
listed/VBN
in/IN
the/DT
first/JJ
section/NN
,/,
which/WDT
gained/VBD
0.24/CD
point/NN
Wednesday/NNP
,/,
was/VBD
up/IN
22.78/CD
,/,
or/CC
0.86/CD
%/NN
,/,
at/IN
2665.66/CD
./.
The/DT
morning/NN
session/NN
was/VBD
dominated/VBN
by/IN
individuals/NNS
and/CC
dealers/NNS
,/,
but/CC
some/DT
institutions/NNS
participated/VBD
in/IN
the/DT
afternoon/NN
,/,
encouraged/VBN
by/IN
the/DT
market/NN
's/POS
firmness/NN
,/,
traders/NNS
said/VBD
./.
Sentiment/NN
was/VBD
helped/VBN
by/IN
the/DT
small/JJ
gain/NN
made/VBN
by/IN
New/NNP
York/NNP
stocks/NNS
Wednesday/NNP
despite/IN
anxiety/NN
over/IN
possible/JJ
effects/NNS
of/IN
the/DT
major/JJ
earthquake/NN
that/WDT
struck/VBD
northern/JJ
California/NNP
Tuesday/NNP
./.
Having/VBG
survived/VBN
both/DT
last/JJ
Friday/NNP
's/POS
6.9/CD
%/NN
Wall/NNP
Street/NNP
plunge/NN
and/CC
the/DT
immediate/JJ
aftermath/NN
of/IN
the/DT
San/NNP
Francisco/NNP
Bay/NNP
area/NN
earthquake/NN
,/,
Tokyo/NNP
market/NN
participants/NNS
expressed/VBD
relief/NN
that/IN
trading/NN
had/VBD
returned/VBN
to/TO
normal/JJ
./.
Hiroyuki/NNP
Murai/NNP
,/,
general/JJ
manager/NN
of/IN
the/DT
stock/NN
trading/NN
division/NN
at/IN
Nikko/NNP
Securities/NNPS
,/,
said/VBD
that/IN
after/IN
looking/VBG
at/IN
the/DT
reasons/NNS
for/IN
Friday/NNP
's/POS
Wall/NNP
Street/NNP
plunge/NN
,/,
participants/NNS
realized/VBD
that/IN
the/DT
Tokyo/NNP
and/CC
New/NNP
York/NNP
markets/NNS
have/VBP
different/JJ
economic/JJ
fundamentals/NNS
./.
This/DT
conclusion/NN
,/,
he/PRP
said/VBD
,/,
restored/VBD
the/DT
credibility/NN
of/IN
Tokyo/NNP
stocks/NNS
./.
Yoshiaki/NNP
Mitsuoka/NNP
,/,
head/NN
of/IN
the/DT
investment/NN
information/NN
department/NN
at/IN
Daiwa/NNP
Investment/NNP
Trust/NNP
&/CC
Management/NNP
,/,
said/VBD
that/IN
if/IN
New/NNP
York/NNP
stocks/NNS
just/RB
fluctuate/VBP
in/IN
or/CC
near/IN
their/PRP$
current/JJ
range/NN
,/,
the/DT
Tokyo/NNP
market/NN
will/MD
remain/VB
firm/NN
with/IN
a/DT
moderately/RB
upward/JJ
trend/NN
for/IN
the/DT
rest/NN
of/IN
the/DT
year/NN
./.
But/CC
traders/NNS
said/VBD
the/DT
market/NN
lacks/VBZ
a/DT
base/NN
on/IN
which/WDT
to/TO
set/VB
long-term/JJ
buying/NN
strategy/NN
,/,
as/IN
the/DT
future/JJ
direction/NN
of/IN
U.S./NNP
interest/NN
rates/NNS
remains/VBZ
unclear/JJ
./.
``/``
Investor/NN
interest/NN
switches/VBZ
back/RB
and/CC
forth/RB
ceaselessly/RB
as/IN
they/PRP
are/VBP
unable/JJ
to/TO
shift/VB
their/PRP$
weight/NN
to/TO
one/CD
side/NN
for/IN
sure/JJ
,/,
''/''
Mr./NNP
Mitsuoka/NNP
of/IN
Daiwa/NNP
Investment/NNP
Trust/NNP
said/VBD
./.
Many/JJ
of/IN
Wednesday/NNP
's/POS
winners/NNS
were/VBD
losers/NNS
yesterday/NN
as/IN
investors/NNS
quickly/RB
took/VBD
profits/NNS
and/CC
rotated/VBD
their/PRP$
buying/NN
to/TO
other/JJ
issues/NNS
,/,
traders/NNS
said/VBD
./.
Pharmaceuticals/NNS
made/VBD
across-the-board/JJ
advances/NNS
./.
Fujisawa/NNP
Pharmaceutical/NNP
gained/VBD
130/CD
to/TO
1,930/CD
yen/NN
$/$
13.64/CD
a/DT
share/NN
,/,
Mochida/NNP
Pharmaceutical/NNP
was/VBD
up/IN
150/CD
at/IN
4,170/CD
,/,
and/CC
Eisai/NNP
advanced/VBD
60/CD
to/TO
2,360/CD
./.
Housing/NN
issues/NNS
were/VBD
boosted/VBN
by/IN
a/DT
report/NN
that/IN
Daiwa/NNP
House/NNP
expects/VBZ
to/TO
post/VB
43/CD
%/NN
higher/JJR
earnings/NNS
for/IN
its/PRP$
latest/JJS
fiscal/JJ
year/NN
,/,
traders/NNS
said/VBD
./.
Daiwa/NNP
House/NNP
advanced/VBD
100/CD
to/TO
2,610/CD
,/,
Misawa/NNP
Homes/NNPS
was/VBD
up/IN
60/CD
at/IN
2,940/CD
,/,
and/CC
Sekisui/NNP
House/NNP
gained/VBD
100/CD
to/TO
2,490/CD
./.
Leading/VBG
construction/NN
companies/NNS
also/RB
attracted/VBD
interest/NN
for/IN
their/PRP$
strong/JJ
earnings/NNS
outlooks/NNS
,/,
traders/NNS
said/VBD
./.
They/PRP
and/CC
many/JJ
other/JJ
major/JJ
Japanese/JJ
corporations/NNS
will/MD
issue/VB
results/NNS
soon/RB
for/IN
the/DT
fiscal/JJ
first/JJ
half/NN
ended/VBD
Sept./NNP
30/CD
./.
Ohbayashi/NNP
was/VBD
up/IN
60/CD
to/TO
close/VB
at/IN
1,680/CD
,/,
Shimizu/NNP
gained/VBD
50/CD
to/TO
2,120/CD
,/,
and/CC
Kumagai-Gumi/NNP
advanced/VBD
40/CD
to/TO
1,490/CD
./.
Other/JJ
winners/NNS
included/VBD
real/JJ
estate/NN
issues/NNS
Mitsubishi/NNP
Estate/NNP
,/,
which/WDT
closed/VBD
at/IN
2,500/CD
,/,
up/IN
130/CD
,/,
and/CC
Mitsui/NNP
Real/NNP
Estate/NNP
Development/NNP
,/,
which/WDT
gained/VBD
100/CD
to/TO
2,890/CD
./.
Steel/NNP
shares/NNS
fell/VBD
back/RB
after/IN
advancing/VBG
for/IN
three/CD
days/NNS
./.
Kawasaki/NNP
Steel/NNP
was/VBD
down/IN
11/CD
at/IN
788/CD
,/,
Kobe/NNP
Steel/NNP
lost/VBD
5/CD
to/TO
723/CD
,/,
and/CC
Nippon/NNP
Steel/NNP
slipped/VBD
6/CD
to/TO
729/CD
./.
Mitsubishi/NNP
Rayon/NNP
,/,
a/DT
leading/VBG
advancer/NN
Wednesday/NNP
,/,
fell/VBD
44/CD
to/TO
861/CD
as/IN
investors/NNS
grabbed/VBD
profits/NNS
./.
London/NNP
's/POS
Financial/NNP
Times-Stock/NNP
Exchange/NNP
100-share/JJ
index/NN
finished/VBD
19.2/CD
points/NNS
higher/JJR
at/IN
2189.3/CD
./.
The/DT
Financial/NNP
Times/NNP
30-share/JJ
index/NN
ended/VBD
13.6/CD
higher/JJR
at/IN
1772.1/CD
./.
Volume/NN
continued/VBD
to/TO
ease/VB
from/IN
the/DT
active/JJ
dealings/NNS
at/IN
the/DT
start/NN
of/IN
the/DT
week/NN
./.
Turnover/NN
was/VBD
382.9/CD
million/CD
shares/NNS
,/,
compared/VBN
with/IN
449.3/CD
million/CD
Wednesday/NNP
./.
Dealers/NNS
said/VBD
the/DT
market/NN
was/VBD
underpinned/VBN
by/IN
a/DT
squeeze/NN
in/IN
FT-SE/NNP
100/CD
stocks/NNS
,/,
particularly/RB
among/IN
market-makers/NNS
seeking/VBG
shares/NNS
that/WDT
had/VBD
been/VBN
hit/VBN
hard/RB
in/IN
recent/JJ
weeks/NNS
,/,
such/JJ
as/IN
retailers/NNS
and/CC
building-related/JJ
concerns/NNS
./.
But/CC
despite/IN
the/DT
flurry/NN
of/IN
interest/NN
in/IN
those/DT
shares/NNS
,/,
dealers/NNS
said/VBD
,/,
the/DT
market/NN
remains/VBZ
nervous/JJ
about/IN
Wall/NNP
Street/NNP
's/POS
volatility/NN
and/CC
high/JJ
U.K./NNP
interest/NN
rates/NNS
./.
U.K./NNP
money/NN
supply/NN
figures/NNS
for/IN
September/NNP
,/,
released/VBD
yesterday/NN
,/,
showed/VBD
continued/VBN
growth/NN
in/IN
corporate/JJ
and/CC
personal/JJ
lending/NN
,/,
which/WDT
will/MD
keep/VB
pressure/NN
on/IN
the/DT
government/NN
to/TO
maintain/VB
tight/JJ
credit/NN
./.
Among/IN
the/DT
stocks/NNS
featured/VBN
in/IN
the/DT
market-makers/NNS
'/POS
squeeze/NN
was/VBD
Sears/NNP
,/,
which/WDT
closed/VBD
at/IN
107/CD
pence/NN
$/$
1.70/CD
a/DT
share/NN
,/,
up/IN
3/CD
./.
General/NNP
Universal/NNP
Stores/NNPS
,/,
another/DT
top-tier/JJ
stock/NN
hit/VBN
recently/RB
by/IN
concerns/NNS
over/IN
retail/JJ
demand/NN
in/IN
the/DT
face/NN
of/IN
high/JJ
interest/NN
rates/NNS
,/,
gained/VBD
20/CD
to/TO
#/#
10.44/CD
./.
Storehouse/NNP
gained/VBD
2/CD
to/TO
Another/DT
active/JJ
FT-SE/NNP
100/CD
stock/NN
was/VBD
clothing/NN
and/CC
furniture/NN
retailer/NN
Burton/NNP
,/,
which/WDT
gained/VBD
6/CD
to/TO
196/CD
./.
Insurers/NNS
recovered/VBD
ground/NN
again/RB
on/IN
market-maker/NN
demand/NN
and/CC
speculative/JJ
buying/NN
linked/VBN
to/TO
talk/NN
of/IN
mergers/NNS
in/IN
the/DT
industry/NN
before/IN
the/DT
European/NNP
Community/NNP
's/POS
planned/VBN
market/NN
unification/NN
in/IN
Royal/NNP
Insurance/NNP
was/VBD
the/DT
sector/NN
's/POS
hottest/JJS
issue/NN
,/,
ending/VBG
15/CD
higher/JJR
at/IN
465/CD
./.
Sun/NNP
Alliance/NNP
fell/VBD
1/CD
to/TO
close/VB
at/IN
289/CD
,/,
and/CC
General/NNP
Accident/NNP
jumped/VBD
10/CD
to/TO
#/#
10.13/CD
./.
B.A.T/NNP
Industries/NNPS
surged/VBD
in/IN
afternoon/NN
dealings/NNS
after/IN
its/PRP$
shareholders/NNS
approved/VBD
a/DT
plan/NN
to/TO
dispose/VB
of/IN
its/PRP$
U.S./NNP
and/CC
U.K./NNP
retailing/VBG
operations/NNS
to/TO
fend/VB
off/IN
Hoylake/NNP
Investment/NNP
's/POS
#/#
13.4/CD
billion/CD
$/$
21.33/CD
billion/CD
hostile/JJ
bid/NN
./.
With/IN
the/DT
company/NN
also/RB
exercising/VBG
a/DT
plan/NN
to/TO
buy/VB
back/RB
as/RB
many/JJ
as/IN
10/CD
%/NN
of/IN
its/PRP$
shares/NNS
outstanding/JJ
,/,
B.A.T/NNP
closed/VBD
at/IN
783/CD
,/,
up/IN
27/CD
./.
Turnover/NN
was/VBD
6.8/CD
million/CD
shares/NNS
,/,
including/VBG
about/IN
four/CD
million/CD
shares/NNS
traded/VBN
in/IN
the/DT
afternoon/NN
after/IN
the/DT
shareholders/NNS
'/POS
meeting/NN
./.
B.A.T/NNP
said/VBD
it/PRP
purchased/VBD
2.5/CD
million/CD
shares/NNS
at/IN
785/CD
./.
In/IN
other/JJ
European/JJ
markets/NNS
,/,
shares/NNS
closed/VBD
sharply/RB
higher/JJR
in/IN
Stockholm/NNP
,/,
Frankfurt/NNP
,/,
Zurich/NNP
and/CC
Paris/NNP
and/CC
higher/JJR
in/IN
Milan/NNP
,/,
Amsterdam/NNP
and/CC
Brussels/NNP
./.
South/NNP
African/NNP
gold/NN
stocks/NNS
closed/VBD
firmer/JJR
./.
Prices/NNS
also/RB
closed/VBN
higher/JJR
in/IN
Singapore/NNP
,/,
Sydney/NNP
,/,
Taipei/NNP
,/,
Wellington/NNP
,/,
Hong/NNP
Kong/NNP
and/CC
Manila/NNP
but/CC
were/VBD
lower/JJR
in/IN
Seoul/NNP
./.
Here/RB
are/VBP
price/NN
trends/NNS
on/IN
the/DT
world/NN
's/POS
major/JJ
stock/NN
markets/NNS
,/,
as/IN
calculated/VBN
by/IN
Morgan/NNP
Stanley/NNP
Capital/NNP
International/NNP
Perspective/NNP
,/,
Geneva/NNP
./.
To/TO
make/VB
them/PRP
directly/RB
comparable/JJ
,/,
each/DT
index/NN
is/VBZ
based/VBN
on/IN
the/DT
close/NN
of/IN
1969/CD
equaling/VBG
100/CD
./.
The/DT
percentage/NN
change/NN
is/VBZ
since/IN
year-end/NN
./.
The/DT
federal/JJ
response/NN
to/TO
California/NNP
's/POS
earthquake/NN
crisis/NN
was/VBD
marred/VBN
by/IN
coast-to-coast/JJ
name-calling/NN
between/IN
the/DT
White/NNP
House/NNP
and/CC
San/NNP
Francisco/NNP
's/POS
Mayor/NNP
Art/NNP
Agnos/NNP
./.
Mr./NNP
Agnos/NNP
complained/VBD
that/IN
he/PRP
was/VBD
``/``
ticked/VBN
off/IN
''/''
that/IN
Vice/NNP
President/NNP
Dan/NNP
Quayle/NNP
,/,
who/WP
toured/VBD
the/DT
earthquake/NN
site/NN
Wednesday/NNP
,/,
did/VBD
n't/RB
schedule/VB
a/DT
private/JJ
meeting/NN
with/IN
him/PRP
./.
The/DT
mayor/NN
said/VBD
the/DT
Quayle/NNP
visit/NN
was/VBD
``/``
a/DT
publicity/NN
stunt/NN
./.
''/''
The/DT
White/NNP
House/NNP
said/VBD
Mr./NNP
Quayle/NNP
's/POS
staff/NN
had/VBD
invited/VBN
the/DT
mayor/NN
to/TO
two/CD
meetings/NNS
of/IN
the/DT
vice/NN
president/NN
and/CC
groups/NNS
of/IN
local/JJ
officials/NNS
and/CC
had/VBD
offered/VBN
to/TO
dispatch/VB
a/DT
helicopter/NN
to/TO
pick/VB
him/PRP
up/IN
./.
Mr./NNP
Agnos/NNP
declined/VBD
the/DT
invitations/NNS
,/,
the/DT
White/NNP
House/NNP
said/VBD
./.
Marlin/NNP
Fitzwater/NNP
,/,
White/NNP
House/NNP
press/NN
secretary/NN
,/,
also/RB
asserted/VBD
that/IN
Mr./NNP
Agnos/NNP
had/VBD
failed/VBN
to/TO
return/VB
telephone/NN
calls/NNS
from/IN
John/NNP
Sununu/NNP
,/,
White/NNP
House/NNP
chief/NN
of/IN
staff/NN
./.
``/``
We/PRP
regret/VBP
very/RB
much/RB
that/IN
the/DT
mayor/NN
of/IN
San/NNP
Francisco/NNP
has/VBZ
decided/VBN
not/RB
to/TO
cooperate/VB
with/IN
us/PRP
on/IN
this/DT
matter/NN
in/IN
making/VBG
sure/JJ
that/IN
there/EX
is/VBZ
adequate/JJ
federal/JJ
support/NN
for/IN
the/DT
disaster/NN
in/IN
his/PRP$
city/NN
,/,
''/''
Mr./NNP
Fitzwater/NNP
said/VBD
./.
By/IN
late/JJ
yesterday/NN
,/,
both/DT
sides/NNS
appeared/VBD
prepared/VBN
to/TO
bury/VB
the/DT
hatchet/NN
./.
The/DT
White/NNP
House/NNP
announced/VBD
that/IN
Mr./NNP
Agnos/NNP
,/,
along/IN
with/IN
the/DT
mayors/NNS
of/IN
Oakland/NNP
and/CC
Alameda/NNP
,/,
are/VBP
to/TO
accompany/VB
President/NNP
Bush/NNP
on/IN
a/DT
tour/NN
of/IN
the/DT
earthquake/NN
area/NN
today/NN
./.
And/CC
one/CD
White/NNP
House/NNP
official/NN
reported/VBD
that/IN
Mr./NNP
Agnos/NNP
had/VBD
been/VBN
``/``
very/RB
helpful/JJ
''/''
in/IN
making/VBG
arrangements/NNS
for/IN
Mr./NNP
Bush/NNP
's/POS
hastily/RB

scheduled/VBN
trip/NN
to/TO
California/NNP
./.
Gold/NN
and/CC
silver/NN
broker/NN
Preston/NNP
Semel/NNP
asked/VBD
a/DT
federal/JJ
court/NN
to/TO
halt/VB
the/DT
Commodity/NNP
Exchange/NNP
from/IN
imposing/VBG
a/DT
record/NN
$/$
550,000/CD
fine/NN
on/IN
his/PRP$
firm/NN
./.
The/DT
suit/NN
,/,
filed/VBN
in/IN
federal/JJ
court/NN
in/IN
Manhattan/NNP
,/,
also/RB
asks/VBZ
that/IN
the/DT
Comex/NNP
's/POS
nine-month/JJ
suspension/NN
of/IN
Mr./NNP
Semel/NNP
be/VB
lifted/VBN
,/,
pending/VBG
the/DT
broker/NN
's/POS
appeal/NN
of/IN
the/DT
disciplinary/JJ
measures/NNS
./.
The/DT
fine/NN
and/CC
suspension/NN
,/,
announced/VBN
in/IN
August/NNP
,/,
are/VBP
the/DT
stiffest/JJS
sanctions/NNS
the/DT
Comex/NNP
has/VBZ
ever/RB
ordered/VBN
against/IN
one/CD
of/IN
its/PRP$
members/NNS
./.
The/DT
Comex/NNP
accused/VBD
the/DT
39-year-old/JJ
Mr./NNP
Semel/NNP
of/IN
``/``
fraudulent/JJ
conduct/NN
''/''
and/CC
improper/JJ
trading/NN
./.
The/DT
disciplinary/JJ
proceedings/NNS
stem/VBP
from/IN
trading/NN
in/IN
April/NNP
1987/CD
./.
Mr./NNP
Semel/NNP
and/CC
his/PRP$
firm/NN
,/,
Semel/NNP
&/CC
Co./NNP
,/,
have/VBP
appealed/VBN
the/DT
Comex/NNP
decision/NN
and/CC
the/DT
sanctions/NNS
to/TO
the/DT
Commodity/NNP
Futures/NNPS
Trading/NNP
Commission/NNP
./.
The/DT
commission/NN
denied/VBD
Mr./NNP
Semel/NNP
's/POS
request/NN
that/IN
the/DT
fine/NN
and/CC
suspension/NN
be/VB
delayed/VBN
pending/VBG
the/DT
appeal/NN
./.
The/DT
lawsuit/NN
states/VBZ
that/IN
unless/IN
the/DT
sanctions/NNS
are/VBP
halted/VBN
pending/VBG
an/DT
appeal/NN
,/,
the/DT
broker/NN
and/CC
his/PRP$
firm/NN
``/``
will/MD
be/VB
irreparably/RB
injured/VBN
and/CC
their/PRP$
business/NN
will/MD
be/VB
totally/RB
and/CC
permanently/RB
destroyed/VBN
./.
''/''
Already/RB
the/DT
firm/NN
has/VBZ
paid/VBN
$/$
211,666/CD
of/IN
the/DT
fine/NN
,/,
the/DT
suit/NN
said/VBD
,/,
and/CC
it/PRP
will/MD
have/VB
to/TO
liquidate/VB
additional/JJ
assets/NNS
in/IN
order/NN
to/TO
pay/VB
the/DT
rest/NN
./.
A/DT
spokesman/NN
for/IN
the/DT
Comex/NNP
could/MD
n't/RB
be/VB
reached/VBN
to/TO
comment/VB
./.
The/DT
Federal/NNP
National/NNP
Mortgage/NNP
Association/NNP
said/VBD
39/CD
lenders/NNS
across/IN
the/DT
U.S./NNP
have/VBP
agreed/VBN
to/TO
offer/VB
home/NN
loans/NNS
under/IN
Fannie/NNP
Mae/NNP
's/POS
pilot/NN
program/NN
for/IN
elderly/JJ
people/NNS
./.
Fannie/NNP
Mae/NNP
,/,
a/DT
federally/RB
chartered/JJ
and/CC
shareholder-owned/JJ
company/NN
,/,
said/VBD
the/DT
lenders/NNS
include/VBP
Prudential/NNP
Home/NNP
Mortgage/NNP
Co./NNP
,/,
a/DT
unit/NN
of/IN
Prudential/NNP
Insurance/NNP
Co./NNP
of/IN
America/NNP
that/WDT
operates/VBZ
in/IN
every/DT
state/NN
./.
Prudential/NNP
Insurance/NNP
is/VBZ
based/VBN
in/IN
Newark/NNP
,/,
N.J/NNP
./.
Fannie/NNP
Mae/NNP
has/VBZ
agreed/VBN
to/TO
buy/VB
as/RB
much/RB
as/IN
$/$
100/CD
million/CD
of/IN
loans/NNS
under/IN
its/PRP$
Seniors/NNS
'/POS
Housing/NNP
Opportunities/NNPS
pilot/NN
program/NN
,/,
which/WDT
offers/VBZ
four/CD
types/NNS
of/IN
loans/NNS
to/TO
people/NNS
62/CD
years/NNS
of/IN
age/NN
or/CC
older/JJR
to/TO
help/VB
them/PRP
maintain/VB
their/PRP$
home/NN
or/CC
obtain/VB
housing/NN
./.
The/DT
loans/NNS
can/MD
be/VB
for/IN
accessory/JJ
apartments/NNS
,/,
for/IN
cottages/NNS
built/VBN
in/IN
a/DT
relative/NN
's/POS
yard/NN
,/,
for/IN
home-sharing/NN
or/CC
for/IN
sale-lease-back/JJ
transactions/NNS
./.
Fannie/NNP
Mae/NNP
makes/VBZ
a/DT
secondary/JJ
market/NN
in/IN
home/NN
loans/NNS
./.
It/PRP
buys/VBZ
loans/NNS
from/IN
lenders/NNS
,/,
packages/VBZ
some/DT
into/IN
securities/NNS
for/IN
sale/NN
to/TO
investors/NNS
and/CC
holds/VBZ
the/DT
remainder/NN
in/IN
a/DT
portfolio/NN
./.
Robert/NNP
M./NNP
Gintel/NNP
,/,
senior/JJ
partner/NN
of/IN
a/DT
Greenwich/NNP
,/,
Conn./NNP
,/,
investment/NN
firm/NN
,/,
said/VBD
he/PRP
plans/VBZ
to/TO
launch/VB
a/DT
proxy/NN
fight/NN
against/IN
the/DT
board/NN
of/IN
Boston-based/JJ
Xtra/NNP
Corp/NNP
./.
Mr./NNP
Gintel/NNP
,/,
head/NN
of/IN
Gintel/NNP
&/CC
Co./NNP
,/,
said/VBD
he/PRP
plans/VBZ
to/TO
conduct/VB
a/DT
proxy/NN
contest/NN
to/TO
elect/VB
a/DT
majority/NN
of/IN
Xtra/NNP
's/POS
board/NN
at/IN
the/DT
next/JJ
annual/JJ
stockholders/NNS
meeting/NN
./.
Xtra/NNP
,/,
a/DT
transportation/NN
leasing/VBG
company/NN
,/,
said/VBD
in/IN
a/DT
statement/NN
it/PRP
would/MD
have/VB
no/DT
comment/NN
on/IN
Mr./NNP
Gintel/NNP
's/POS
plans/NNS
until/IN
``/``
further/JJ
information/NN
has/VBZ
been/VBN
disclosed/VBN
by/IN
him/PRP
./.
''/''
The/DT
company/NN
also/RB
said/VBD
its/PRP$
1990/CD
annual/JJ
meeting/NN
has/VBZ
not/RB
been/VBN
scheduled/VBN
./.
Mr./NNP
Gintel/NNP
owns/VBZ
300,000/CD
of/IN
the/DT
company/NN
's/POS
6.3/CD
million/CD
common/JJ
shares/NNS
outstanding/JJ
./.
Xtra/NNP
said/VBD
it/PRP
recently/RB
bought/VBD
back/RB
approximately/RB
55,000/CD
of/IN
its/PRP$
shares/NNS
pursuant/JJ
to/TO
its/PRP$
existing/VBG
authorization/NN
to/TO
acquire/VB
as/RB
many/JJ
as/IN
650,000/CD
shares/NNS
./.
Mr./NNP
Gintel/NNP
has/VBZ
filed/VBN
suit/NN
in/IN
Delaware/NNP
Chancery/NNP
Court/NNP
,/,
seeking/VBG
to/TO
block/NN
Xtra/NNP
's/POS
anti-takeover/JJ
tactic/NN
./.
In/IN
a/DT
filing/NN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
,/,
Mr./NNP
Gintel/NNP
said/VBD
Xtra/NNP
``/``
has/VBZ
pursued/VBN
business/NN
strategies/NNS
that/WDT
are/VBP
n't/RB
in/IN
the/DT
best/JJS
interest/NN
of/IN
stockholders/NNS
./.
''/''
STOCKS/NNS
AND/CC
BONDS/NNS
SURGED/VBD
on/IN
the/DT
second/JJ
anniversary/NN
of/IN
Black/NNP
Monday/NNP
as/IN
a/DT
favorable/JJ
inflation/NN
report/NN
prompted/VBD
speculation/NN
of/IN
lower/JJR
interest/NN
rates/NNS
./.
The/DT
Dow/NNP
Jones/NNP
industrials/NNS
closed/VBD
up/IN
39.55/CD
,/,
at/IN
2683.20/CD
,/,
after/IN
rising/VBG
over/IN
60/CD
points/NNS
in/IN
mid-afternoon/RB
./.
The/DT
rally/NN
brought/VBD
the/DT
gain/NN
so/RB
far/RB
this/DT
week/NN
to/TO
about/IN
114/CD
points/NNS
./.
The/DT
dollar/NN
finished/VBD
mixed/VBN
,/,
while/IN
gold/NN
declined/VBD
./.
Consumer/NN
prices/NNS
climbed/VBD
a/DT
moderate/JJ
0.2/CD
%/NN
in/IN
September/NNP
,/,
mostly/RB
due/JJ
to/TO
higher/JJR
clothing/NN
costs/NNS
./.
Energy/NN
prices/NNS
continued/VBD
to/TO
fall/VB
at/IN
the/DT
retail/JJ
level/NN
,/,
but/CC
economists/NNS
worried/VBN
about/IN
a/DT
big/JJ
rise/NN
in/IN
wholesale/JJ
energy/NN
costs/NNS
./.
British/NNP
Airways/NNPS
dropped/VBD
out/IN
of/IN
the/DT
current/JJ
bidding/NN
for/IN
United/NNP
Air/NNP
's/POS
parent/NN
,/,
leaving/VBG
a/DT
UAL/NNP
management-pilots/JJ
group/NN
without/IN
a/DT
key/JJ
partner/NN
./.
British/NNP
Air/NNP
's/POS
move/NN
raised/VBD
new/JJ
questions/NNS
about/IN
the/DT
buy-out/NN
group/NN
's/POS
efforts/NNS
to/TO
revive/VB
a/DT
stalled/VBN
bid/NN
for/IN
UAL/NNP
./.
A/DT
capital-gains/JJ
tax-cut/JJ
plan/NN
was/VBD
dropped/VBN
by/IN
Senate/NNP
Democrats/NNPS
under/IN
pressure/NN
from/IN
their/PRP$
leadership/NN
./.
The/DT
move/NN
is/VBZ
a/DT
setback/NN
for/IN
Bush/NNP
,/,
who/WP
needs/VBZ
Democratic/JJ
support/NN
to/TO
pass/VB
a/DT
capital-gains/NN
cut/NN
in/IN
the/DT
Senate/NNP
./.
Other/JJ
tax/NN
breaks/NNS
also/RB
are/VBP
likely/JJ
to/TO
be/VB
restored/VBN
or/CC
created/VBN
in/IN
the/DT
coming/VBG
months/NNS
as/IN
special/JJ
interest/NN
groups/NNS
try/VBP
to/TO
undo/VB
the/DT
1986/CD
tax/NN
overhaul/NN
./.
Many/JJ
retailers/NNS
are/VBP
worried/VBN
that/IN
a/DT
price/NN
war/NN
could/MD
erupt/VB
this/DT
Christmas/NNP
if/IN
cash-strapped/JJ
firms/NNS
such/JJ
as/IN
Campeau/NNP
slash/VBP
prices/NNS
to/TO
spur/VB
sales/NNS
./.
AT&T/NNP
unveiled/VBD
a/DT
sweetened/VBN
early/JJ
retirement/NN
plan/NN
for/IN
management/NN
that/IN
the/DT
company/NN
hopes/VBZ
will/MD
save/VB
it/PRP
$/$
450/CD
million/CD
in/IN
the/DT
next/JJ
year/NN
./.
Also/RB
,/,
profit/NN
rose/VBD
19/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
./.
Chrysler/NNP
will/MD
idle/VB
a/DT
Toledo/NNP
assembly/NN
plant/NN
temporarily/RB
due/JJ
to/TO
slowing/VBG
sales/NNS
of/IN
its/PRP$
profitable/JJ
Jeep/NNP
Cherokee/NNP
and/CC
Wagoneer/NNP
sport/NN
utility/NN
vehicles/NNS
./.
Digital/NNP
Equipment/NNP
's/POS
profit/NN
fell/VBD
32/CD
%/NN
in/IN
the/DT
latest/JJS
quarter/NN
,/,
prompting/VBG
forecasts/NNS
of/IN
weaker/JJR
results/NNS
ahead/RB
./.
Analysts/NNS
were/VBD
troubled/VBN
by/IN
signs/NNS
of/IN
flat/JJ
U.S./NNP
orders/NNS
at/IN
the/DT
computer/NN
maker/NN
./.
IBM/NNP
plans/VBZ
to/TO
unveil/VB
over/IN
50/CD
software/NN
products/NNS
on/IN
Tuesday/NNP
to/TO
try/VB
to/TO
end/VB
some/DT
of/IN
the/DT
problems/NNS
in/IN
computerizing/VBG
manufacturing/NN
operations/NNS
./.
The/DT
TV/NN
units/NNS
of/IN
Paramount/NNP
and/CC
MCA/NNP
are/VBP
exploring/VBG
offering/VBG
prime-time/JJ
programming/NN
to/TO
independent/JJ
stations/NNS
two/CD
nights/NNS
a/DT
week/NN
./.
BankAmerica/NNP
's/POS
profit/NN
jumped/VBD
34/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
./.
The/DT
rapid/JJ
recovery/NN
continued/VBD
to/TO
be/VB
fueled/VBN
by/IN
growth/NN
in/IN
consumer/NN
loans/NNS
,/,
higher/JJR
interest/NN
margins/NNS
and/CC
only/JJ
minor/JJ
loan/NN
losses/NNS
./.
Big/NNP
Board/NNP
short/JJ
interest/NN
fell/VBD
4.2/CD
%/NN
for/IN
the/DT
month/NN
ended/VBD
Oct./NNP
13/CD
,/,
the/DT
second/JJ
decline/NN
in/IN
a/DT
row/NN
./.
Borrowed/VBN
shares/NNS
on/IN
the/DT
Amex/NNP
rose/VBD
to/TO
another/DT
record/NN
./.
Bell/NNP
Atlantic/NNP
posted/VBD
a/DT
strong/JJ
earnings/NNS
gain/NN
for/IN
the/DT
third/JJ
quarter/NN
,/,
as/IN
did/VBD
Southern/NNP
New/NNP
England/NNP
Telecommunications/NNP
./.
But/CC
Nynex/NNP
,/,
Pacific/NNP
Telesis/NNP
and/CC
U/NNP
S/NNP
West/NNP
had/VBD
lower/JJR
profits/NNS
./.
B.A.T/NNP
Industries/NNPS
won/VBD
shareholder/NN
approval/NN
for/IN
a/DT
defensive/JJ
restructuring/NN
to/TO
fend/VB
off/IN
Sir/NNP
James/NNP
Goldsmith/NNP
./.
American/NNP
Express/NNP
's/POS
profit/NN
climbed/VBD
21/CD
%/NN
in/IN
the/DT
quarter/NN
,/,
aided/VBN
by/IN
a/DT
surge/NN
in/IN
its/PRP$
travel/NN
business/NN
and/CC
despite/IN
a/DT
big/JJ
rise/NN
in/IN
Third/NNP
World/NNP
loan/NN
reserves/NNS
./.
Markets/NNS
--/:
Stocks/NNS
:/:
Volume/NN
198,120,000/CD
shares/NNS
./.
Dow/NNP
Jones/NNP
industrials/NNS
2683.20/CD
,/,
up/IN
39.55/CD
;/:
transportation/NN
1263.51/CD
,/,
up/IN
15.64/CD
;/:
utilities/NNS
215.42/CD
,/,
up/IN
1.45/CD
./.
Bonds/NNS
:/:
Shearson/NNP
Lehman/NNP
Hutton/NNP
Treasury/NNP
index/NN
3398.65/CD
,/,
up/IN
Commodities/NNS
:/:
Dow/NNP
Jones/NNP
futures/NNS
index/NN
130.13/CD
,/,
up/IN
0.23/CD
;/:
spot/NN
index/NN
130.46/CD
,/,
up/IN
0.10/CD
./.
Dollar/NN
:/:
141.70/CD
yen/NN
,/,
up/IN
0.25/CD
;/:
1.8470/CD
marks/NNS
,/,
off/IN
0.0015/CD
./.
Computer/NNP
Sciences/NNPS
Corp./NNP
,/,
El/NNP
Segundo/NNP
,/,
Calif./NNP
,/,
said/VBD
the/DT
National/NNP
Aeronautics/NNP
and/CC
Space/NNP
Administration/NNP
will/MD
negotiate/VB
details/NNS
of/IN
a/DT
contract/NN
valued/VBN
at/IN
about/IN
$/$
170/CD
million/CD
to/TO
provide/VB
software/NN
for/IN
the/DT
Ames/NNP
Research/NNP
Center/NNP
./.
Included/VBN
in/IN
the/DT
three-year/JJ
contract/NN
are/VBP
options/NNS
for/IN
two/CD
one-year/JJ
renewals/NNS
./.
NASA/NNP
awarded/VBD
the/DT
contract/NN
to/TO
CSC/NNP
in/IN
November/NNP
but/CC
an/DT
appeal/NN
by/IN
Sterling/NNP
Software/NNP
Inc./NNP
of/IN
Dallas/NNP
sent/VBD
the/DT
contract/NN
to/TO
the/DT
General/NNP
Services/NNPS
Administration/NNP
Board/NNP
of/IN
Contract/NNP
Appeals/NNPS
and/CC
the/DT
board/NN
required/VBN
NASA/NNP
to/TO
re-evaluate/VB
bidders/NNS
'/POS
proposals/NNS
./.
Sterling/NNP
had/VBD
completed/VBN
a/DT
five-year/JJ
contract/NN
for/IN
NASA/NNP
but/CC
lost/VBD
its/PRP$
bid/NN
for/IN
renewal/NN
./.
As/IN
directed/VBN
by/IN
the/DT
board/NN
,/,
NASA/NNP
completed/VBD
the/DT
evaluation/NN
and/CC
again/RB
chose/VBD
CSC/NNP
./.
For/IN
its/PRP$
fiscal/JJ
year/NN
ended/VBD
March/NNP
31/CD
,/,
CSC/NNP
had/VBD
revenue/NN
of/IN
$/$
1.3/CD
billion/CD
./.
AFTERSHOCKS/NNS
RATTLED/VBD
Northern/NNP
California/NNP
amid/IN
an/DT
earthquake/NN
cleanup/NN
./.
As/IN
power/NN
and/CC
commuters/NNS
returned/VBD
to/TO
much/RB
of/IN
downtown/NN
San/NNP
Francisco/NNP
for/IN
the/DT
first/JJ
time/NN
since/IN
Tuesday/NNP
's/POS
temblor/NN
in/IN
the/DT
Bay/NN
area/NN
,/,
three/CD
strong/JJ
aftershocks/NNS
,/,
one/CD
measuring/VBG
5.0/CD
on/IN
the/DT
Richter/NNP
scale/NN
,/,
jolted/VBD
the/DT
region/NN
./.
Serious/JJ
injuries/NNS
or/CC
damages/NNS
were/VBD
n't/RB
reported/VBN
./.
Californians/NNS
,/,
meanwhile/RB
,/,
tried/VBD
to/TO
cope/VB
with/IN
still-limited/JJ
services/NNS
,/,
blocked/VBN
roadways/NNS
and/CC
water/NN
shortages/NNS
in/IN
the/DT
aftermath/NN
of/IN
the/DT
tremor/NN
that/WDT
left/VBD
scores/NNS
dead/VBN
and/CC
injured/VBN
./.
Thousands/NNS
remained/VBD
homeless/JJ
./.
Bush/NNP
is/VBZ
to/TO
visit/VB
the/DT
area/NN
today/NN
,/,
and/CC
officials/NNS
in/IN
Washington/NNP
estimated/VBD
that/IN
emergency/NN
assistance/NN
would/MD
total/VB
at/IN
least/JJS
$/$
2.5/CD
billion/CD
./.
A/DT
series/NN
of/IN
earthquakes/NNS
struck/VBD
northern/JJ
China/NNP
,/,
killing/VBG
at/IN
least/JJS
29/CD
people/NNS
,/,
injuring/VBG
hundreds/NNS
and/CC
razing/VBG
about/IN
8,000/CD
homes/NNS
,/,
the/DT
Xinhua/NNP
News/NNP
Agency/NNP
said/VBD
./.
The/DT
Senate/NNP
rejected/VBD
a/DT
constitutional/JJ
amendment/NN
sought/VBN
by/IN
Bush/NNP
to/TO
prohibit/VB
desecration/NN
of/IN
the/DT
U.S./NNP
flag/NN
./.
While/IN
the/DT
proposal/NN
won/VBD
a/DT
slight/JJ
majority/NN
,/,
the/DT
51-48/CD
vote/NN
was/VBD
well/RB
short/JJ
of/IN
the/DT
two-thirds/NNS
needed/VBN
to/TO
approve/VB
changes/NNS
in/IN
the/DT
Constitution/NNP
./.
It/PRP
was/VBD
considered/VBN
a/DT
victory/NN
for/IN
Democratic/JJ
leaders/NNS
,/,
who/WP
favor/VBP
a/DT
law/NN
barring/VBG
flag/NN
burning/NN
./.
The/DT
House/NNP
approved/VBD
an/DT
$/$
837/CD
million/CD
aid/NN
package/NN
for/IN
Poland/NNP
and/CC
Hungary/NNP
,/,
nearly/RB
double/JJ
what/WP
Bush/NNP
had/VBD
requested/VBN
./.
The/DT
vote/NN
of/IN
345-47/CD
sent/VBD
the/DT
measure/NN
to/TO
the/DT
Senate/NNP
./.
Britain/NNP
's/POS
chief/NN
justice/NN
quashed/VBD
the/DT
murder/NN
convictions/NNS
of/IN
four/CD
people/NNS
for/IN
Irish/NNP
Republican/NNP
Army/NNP
bombings/NNS
that/WDT
killed/VBD
seven/CD
people/NNS
in/IN
1974/CD
./.
The/DT
reversal/NN
came/VBD
after/IN
the/DT
government/NN
conceded/VBD
that/IN
investigators/NNS
may/MD
have/VB
faked/VBN
evidence/NN
./.
The/DT
``/``
Guildford/NNP
Four/NNP
,/,
''/''
three/CD
Irishmen/NNPS
and/CC
an/DT
Englishwoman/NNP
,/,
have/VBP
been/VBN
imprisoned/VBN
since/IN
1975/CD
./.
The/DT
Nobel/NNP
Prize/NNP
in/IN
literature/NN
was/VBD
won/VBN
by/IN
Camilo/NNP
Jose/NNP
Cela/NNP
,/,
a/DT
Spanish/JJ
writer/NN
./.
His/PRP$
1942/CD
novel/NN
``/``
The/DT
Family/NNP
of/IN
Pascual/NNP
Duarte/NNP
''/''
is/VBZ
considered/VBN
the/DT
most/RBS
popular/JJ
work/NN
of/IN
fiction/NN
in/IN
Spanish/NNP
since/IN
Cervantes/NNP
's/POS
``/``
Don/NNP
Quixote/NNP
''/''
was/VBD
published/VBN
400/CD
years/NNS
ago/IN
./.
The/DT
Swedish/NNP
Academy/NNP
in/IN
Stockholm/NNP
cited/VBD
the/DT
73-year-old/JJ
Cela/NNP
for/IN
``/``
rich/JJ
and/CC
intensive/JJ
prose/NN
./.
''/''
The/DT
editor/NN
of/IN
Pravda/NNP
was/VBD
dismissed/VBN
and/CC
succeeded/VBN
by/IN
a/DT
confidant/NN
of/IN
Soviet/NNP
leader/NN
Gorbachev/NNP
./.
The/DT
action/NN
at/IN
the/DT
Communist/NNP
Party/NNP
daily/RB
,/,
viewed/VBD
as/IN
the/DT
Soviet/NNP
Union/NNP
's/POS
most/JJS
authoritative/JJ
newspaper/NN
,/,
was/VBD
considered/VBN
the/DT
most/RBS
significant/JJ
development/NN
in/IN
a/DT
week/NN
of/IN
Kremlin/NNP
wrangling/VBG
over/IN
the/DT
press/NN
,/,
including/VBG
sharp/JJ
criticism/NN
from/IN
Gorbachev/NNP
./.
East/NNP
Germany/NNP
's/POS
new/JJ
leader/NN
met/VBD
with/IN
Lutheran/NNP
Church/NNP
officials/NNS
to/TO
discuss/VB
a/DT
growing/VBG
opposition/NN
movement/NN
demanding/VBG
democratic/JJ
freedoms/NNS
./.
As/IN
they/PRP
conferred/VBD
near/IN
East/NNP
Berlin/NNP
,/,
a/DT
pro-democracy/JJ
protest/NN
erupted/VBD
in/IN
the/DT
Baltic/JJ
city/NN
of/IN
Greifswald/NNP
,/,
and/CC
activists/NNS
threatened/VBD
further/JJ
rallies/NNS
against/IN
leader/NN
Krenz/NNP
's/POS
expected/VBN
hard-line/JJ
policies/NNS
./.
Police/NN
in/IN
Prague/NNP
raided/VBD
an/DT
international/JJ
meeting/NN
on/IN
human/JJ
rights/NNS
,/,
detaining/VBG
Czechoslovakia/NNP
's/POS
former/JJ
foreign/JJ
minister/NN
,/,
Jiri/NNP
Hajak/NNP
,/,
and/CC
14/CD
other/JJ
activists/NNS
./.
A/DT
leading/VBG
U.S./NNP
human-rights/NNS
monitor/NN
also/RB
was/VBD
briefly/NN
held/VBN
./.
Dissident/JJ
playwright/NN
Vaclav/NNP
Havel/NNP
reportedly/RB
escaped/VBD
the/DT
crackdown/NN
,/,
the/DT
fourth/JJ
against/IN
activists/NNS
in/IN
recent/JJ
days/NNS
./.
Bush/NNP
met/VBD
in/IN
Washington/NNP
with/IN
Spain/NNP
's/POS
Prime/NNP
Minister/NNP
Gonzalez/NNP
and/CC
discussed/VBD
what/WP
the/DT
president/NN
called/VBD
``/``
the/DT
unique/JJ
role/NN
''/''
that/IN
Madrid/NNP
can/MD
play/VB
in/IN
furthering/VBG
democracy/NN
in/IN
Eastern/NNP
Europe/NNP
and/CC
Latin/NNP
America/NNP
./.
Gonzalez/NNP
,/,
who/WP
pledged/VBD
to/TO
help/VB
monitor/VB
voting/NN
in/IN
Nicaragua/NNP
,/,
was/VBD
said/VBD
to/TO
be/VB
carrying/VBG
proposals/NNS
for/IN
free/JJ
elections/NNS
in/IN
Panama/NNP
./.
The/DT
Galileo/NNP
spacecraft/NN
sped/VBD
unerringly/RB
toward/IN
the/DT
planet/NN
Jupiter/NNP
,/,
while/IN
five/CD
astronauts/NNS
aboard/IN
the/DT
space/NN
shuttle/NN
Atlantis/NNP
measured/VBD
the/DT
Earth/NN
's/POS
ozone/NN
layer/NN
./.
The/DT
robot/NN
probe/NN
was/VBD
dispatched/VBN
Wednesday/NNP
by/IN
the/DT
shuttle/NN
crew/NN
,/,
which/WDT
is/VBZ
to/TO
conduct/VB
a/DT
series/NN
of/IN
medical/JJ
and/CC
other/JJ
experiments/NNS
before/IN
their/PRP$
scheduled/VBN
landing/NN
Monday/NNP
in/IN
California/NNP
./.
Argentina/NNP
and/CC
Britain/NNP
agreed/VBD
to/TO
resume/VB
diplomatic/JJ
and/CC
economic/JJ
relations/NNS
,/,
seven/CD
years/NNS
after/IN
the/DT
two/CD
nations/NNS
battled/VBD
over/IN
the/DT
Falkland/NNP
Islands/NNPS
./.
The/DT
announcement/NN
,/,
in/IN
which/WDT
they/PRP
said/VBD
hostilities/NNS
had/VBD
ceased/VBN
,/,
followed/VBD
a/DT
two-day/JJ
meeting/NN
in/IN
Madrid/NNP
./.
Rebel/NN
artillerists/NNS
bombarded/VBD
the/DT
capital/NN
of/IN
Afghanistan/NNP
,/,
killing/VBG
at/IN
least/JJS
12/CD
people/NNS
,/,
as/IN
the/DT
Soviet/NNP
Union/NNP
was/VBD
reported/VBN
to/TO
be/VB
airlifting/VBG
arms/NNS
and/CC
food/NN
to/TO
Kabul/NNP
's/POS
forces/NNS
./.
Fighting/NN
also/RB
was/VBD
reported/VBN
around/IN
the/DT
strategic/JJ
town/NN
of/IN
Khost/NNP
,/,
near/IN
the/DT
Pakistani/JJ
border/NN
./.
Saudi/NNP
Arabia/NNP
's/POS
foreign/JJ
minister/NN
met/VBD
in/IN
Damascus/NNP
with/IN
President/NNP
Assad/NNP
to/TO
develop/VB
a/DT
plan/NN
for/IN
the/DT
withdrawal/NN
of/IN
Syria/NNP
's/POS
40,000/CD
troops/NNS
from/IN
Lebanon/NNP
as/IN
part/NN
of/IN
a/DT
settlement/NN
of/IN
that/DT
nation/NN
's/POS
14-year-old/JJ
civil/JJ
war/NN
./.
The/DT
talks/NNS
came/VBD
as/IN
Lebanese/JJ
negotiations/NNS
on/IN
political/JJ
changes/NNS
appeared/VBD
deadlocked/VBN
./.
GOP/NNP
Sen./NNP
Specter/NNP
of/IN
Pennsylvania/NNP
said/VBD
he/PRP
would/MD
vote/VB
to/TO
acquit/VB
federal/JJ
Judge/NNP
Alcee/NNP
Hastings/NNP
in/IN
his/PRP$
impeachment/NN
trial/NN
on/IN
charges/NNS
of/IN
perjury/NN
and/CC
bribery/NN
conspiracy/NN
./.
Specter/NNP
,/,
the/DT
vice/NN
chairman/NN
of/IN
the/DT
Senate/NNP
's/POS
evidence/NN
panel/NN
,/,
said/VBD
there/EX
was/VBD
``/``
insufficient/JJ
evidence/NN
to/TO
convict/VB
''/''
the/DT
Miami/NNP
jurist/NN
./.
After/IN
slipping/VBG
on/IN
news/NN
of/IN
a/DT
smaller-than-expected/JJ
U.S./NNP
inflation/NN
figure/NN
,/,
the/DT
dollar/NN
rebounded/NN
later/RB
in/IN
the/DT
trading/VBG
day/NN
./.
The/DT
U.S./NNP
unit/NN
dipped/VBD
to/TO
a/DT
session/NN
low/JJ
against/IN
the/DT
mark/NN
just/RB
after/IN
the/DT
release/NN
of/IN
the/DT
U.S./NNP
consumer/NN
price/NN
index/NN
./.
The/DT
report/NN
showed/VBD
that/IN
September/NNP
consumer/NN
prices/NNS
rose/VBD
just/RB
0.2/CD
%/NN
,/,
a/DT
smaller/JJR
increase/NN
than/IN
expected/VBN
./.
The/DT
market/NN
had/VBD
anticipated/VBN
a/DT
0.4/CD
%/NN
rise/NN
in/IN
the/DT
price/NN
index/NN
./.
The/DT
September/NNP
index/NN
fueled/VBD
speculation/NN
,/,
damaging/VBG
to/TO
the/DT
dollar/NN
,/,
that/IN
the/DT
Federal/NNP
Reserve/NNP
soon/RB
will/MD
ease/VB
monetary/JJ
policy/NN
further/RB
./.
But/CC
foreign-exchange/JJ
dealers/NNS
said/VBD
the/DT
dollar/NN
staged/VBD
a/DT
quick/JJ
comeback/NN
,/,
prompted/VBN
by/IN
a/DT
round/NN
of/IN
short/JJ
covering/NN
and/CC
some/DT
fresh/JJ
buying/NN
interest/NN
later/RB
in/IN
the/DT
trading/NN
day/NN
./.
Traders/NNS
said/VBD
that/IN
a/DT
nearly/RB
40-point/JJ
gain/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
,/,
fueled/VBN
in/IN
part/NN
by/IN
news/NN
of/IN
a/DT
lower-than-expected/JJ
price/NN
index/NN
,/,
had/VBD
little/JJ
influence/NN
on/IN
the/DT
dollar/NN
's/POS
moves/NNS
./.
``/``
The/DT
market/NN
is/VBZ
beginning/VBG
to/TO
disassociate/VB
itself/PRP
from/IN
Wall/NNP
Street/NNP
,/,
''/''
said/VBD
one/CD
New/NNP
York/NNP
trader/NN
./.
In/IN
late/JJ
New/NNP
York/NNP
trading/NN
yesterday/NN
,/,
the/DT
dollar/NN
was/VBD
quoted/VBN
at/IN
1.8470/CD
marks/NNS
,/,
down/IN
from/IN
1.8485/CD
marks/NNS
late/JJ
Wednesday/NNP
,/,
and/CC
at/IN
141.70/CD
yen/NN
,/,
up/IN
from/IN
141.45/CD
yen/NN
late/JJ
Wednesday/NNP
./.
Sterling/NNP
was/VBD
quoted/VBN
at/IN
$/$
1.5990/CD
,/,
up/IN
from/IN
$/$
1.5920/CD
late/JJ
Wednesday/NNP
./.
In/IN
Tokyo/NNP
Friday/NNP
,/,
the/DT
U.S./NNP
currency/NN
opened/VBD
for/IN
trading/NN
at/IN
141.93/CD
yen/NN
,/,
up/IN
from/IN
Thursday/NNP
's/POS
Tokyo/NNP
close/NN
of/IN
141.55/CD
yen/NN
./.
Some/DT
analysts/NNS
said/VBD
the/DT
consumer/NN
price/NN
index/NN
reflects/VBZ
a/DT
more/RBR
significant/JJ
slowdown/NN
in/IN
the/DT
U.S./NNP
economy/NN
than/IN
earlier/RBR
indicated/VBN
./.
They/PRP
point/VBP
out/IN
that/IN
September/NNP
's/POS
producer-price/JJ
index/NN
showed/VBD
a/DT
0.9/CD
%/NN
increase/NN
./.
They/PRP
noted/VBD
that/IN
because/IN
the/DT
consumer/NN
price/NN
index/NN
,/,
known/VBN
as/IN
the/DT
CPI/NNP
,/,
is/VBZ
a/DT
more/RBR
comprehensive/JJ
measure/NN
of/IN
inflation/NN
and/CC
is/VBZ
rising/VBG
less/RBR
rapidly/RB
than/IN
the/DT
producer-price/JJ
index/NN
,/,
or/CC
PPI/NNP
,/,
it/PRP
could/MD
signal/VB
further/RB
easing/VBG
by/IN
Fed/NNP
./.
Others/NNS
suggested/VBD
,/,
however/RB
,/,
that/IN
the/DT
Fed/NNP
will/MD
hold/VB
any/DT
changes/NNS
in/IN
monetary/JJ
policy/NN
in/IN
check/NN
,/,
leaving/VBG
fed/NN
funds/NNS
at/IN
around/IN
8/CD
3\/4/CD
%/NN
,/,
down/IN
from/IN
the/DT
9/CD
%/NN
level/NN
that/WDT
prevailed/VBD
from/IN
July/NNP
through/IN
September/NNP
./.
Kevin/NNP
Logan/NNP
,/,
chief/NN
economist/NN
with/IN
the/DT
Swiss/NNP
Bank/NNP
Corp./NNP
,/,
said/VBD
that/IN
both/DT
PPI/NNP
and/CC
CPI/NNP
climbed/VBD
around/IN
4/CD
1\/2/CD
%/NN
year-to-year/JJ
in/IN
September/NNP
./.
He/PRP
argued/VBD
that/IN
both/DT
CPI/NNP
and/CC
PPI/NNP
have/VBP
in/IN
fact/NN
decelerated/VBN
since/IN
spring/NN
./.
``/``
The/DT
Fed/NNP
wo/MD
n't/RB
be/VB
stampeded/VBN
into/IN
easing/VBG
,/,
''/''
Mr./NNP
Logan/NNP
said/VBD
,/,
predicting/VBG
that/IN
for/IN
now/RB
,/,
interest/NN
rates/NNS
will/MD
stay/VB
where/WRB
they/PRP
are/VBP
./.
A/DT
four-day/JJ
matched/VBN
sale-purchase/NN
agreement/NN
,/,
a/DT
move/NN
to/TO
drain/VB
liquidity/NN
from/IN
the/DT
system/NN
,/,
was/VBD
viewed/VBN
as/IN
a/DT
technical/JJ
move/NN
,/,
rather/RB
than/IN
an/DT
indication/NN
of/IN
tightening/VBG
credit/NN
./.
Market/NN
participants/NNS
note/VBP
that/IN
the/DT
mark/NN
continues/VBZ
to/TO
post/VB
heftier/JJR
gains/NNS
against/IN
its/PRP$
U.S./NNP
counterpart/NN
than/IN
any/DT
other/JJ
major/JJ
currency/NN
,/,
particularly/RB
the/DT
yen/NN
./.
``/``
There/EX
's/VBZ
a/DT
bottomless/JJ
pit/NN
of/IN
dollar/NN
demand/NN
''/''
by/IN
Japanese/JJ
investors/NNS
,/,
said/VBD
Graham/NNP
Beale/NNP
,/,
managing/VBG
director/NN
of/IN
foreign/JJ
exchange/NN
at/IN
Hongkong/NNP
&/CC
Shanghai/NNP
Banking/NNP
Corp./NNP
in/IN
New/NNP
York/NNP
,/,
adding/VBG
that/IN
purely/RB
speculative/JJ
demand/NN
would/MD
n't/RB
hold/VB
the/DT
dollar/NN
at/IN
its/PRP$
recent/JJ
levels/NNS
against/IN
the/DT
Japanese/JJ
currency/NN
./.
Mr./NNP
Beale/NNP
commented/VBD
that/IN
the/DT
mark/NN
remains/VBZ
well/RB
bid/VBN
against/IN
other/JJ
currencies/NNS
as/RB
well/RB
./.
Robert/NNP
White/NNP
,/,
manager/NN
of/IN
corporate/JJ
trading/NN
at/IN
First/NNP
Interstate/NNP
of/IN
California/NNP
,/,
called/VBD
the/DT
market/NN
``/``
psychologically/RB
pro-mark/JJ
,/,
''/''
noting/VBG
that/IN
the/DT
U.S./NNP
remains/VBZ
a/DT
``/``
veritable/JJ
grab/NN
bag/NN
''/''
for/IN
Japanese/JJ
investors/NNS
which/WDT
accounts/VBZ
for/IN
the/DT
unabated/JJ
demand/NN
for/IN
U.S./NNP
dollars/NNS
./.
On/IN
the/DT
Commodity/NNP
Exchange/NNP
in/IN
New/NNP
York/NNP
,/,
gold/NN
dropped/VBD
$/$
1.60/CD
to/TO
$/$
367.10/CD
an/DT
ounce/NN
in/IN
moderate/JJ
trading/NN
./.
Estimated/VBN
volume/NN
was/VBD
three/CD
million/CD
ounces/NNS
./.
In/IN
early/RB
trading/NN
in/IN
Hong/NNP
Kong/NNP
Friday/NNP
,/,
gold/NN
was/VBD
at/IN
about/IN
$/$
366.85/CD
an/DT
ounce/NN
./.
Hotel/NNP
Investors/NNPS
Trust/NNP
and/CC
its/PRP$
affiliate/NN
,/,
Hotel/NNP
Investors/NNPS
Corp./NNP
,/,
said/VBD
the/DT
companies/NNS
plan/VBP
to/TO
sell/VB
all/DT
of/IN
the/DT
hotels/NNS
the/DT
companies/NNS
own/VBP
and/CC
operate/VBP
,/,
except/IN
for/IN
two/CD
hotel-casinos/NNS
in/IN
Las/NNP
Vegas/NNP
,/,
Nev/NNP
./.
The/DT
hotels/NNS
and/CC
management/NN
interests/NNS
will/MD
be/VB
sold/VBN
at/IN
an/DT
auction/NN
,/,
said/VBD
John/NNP
Rothman/NNP
,/,
president/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
the/DT
trust/NN
and/CC
a/DT
director/NN
of/IN
the/DT
corporation/NN
./.
Value/NN
of/IN
the/DT
properties/NNS
and/CC
management/NN
interests/NNS
was/VBD
n't/RB
disclosed/VBN
./.
In/IN
all/DT
,/,
the/DT
Los/NNP
Angeles-based/JJ
trust/NN
plans/VBZ
to/TO
sell/VB
its/PRP$
interests/NNS
in/IN
36/CD
hotels/NNS
,/,
while/IN
the/DT
corporation/NN
will/MD
sell/VB
its/PRP$
management/NN
interests/NNS
in/IN
32/CD
of/IN
those/DT
properties/NNS
./.
Excluded/VBN
from/IN
the/DT
sale/NN
are/VBP
the/DT
interests/NNS
of/IN
the/DT
trust/NN
and/CC
the/DT
corporation/NN
in/IN
two/CD
Las/NNP
Vegas/NNP
hotel-casinos/NNS
./.
After/IN
completing/VBG
the/DT
sale/NN
and/CC
paying/VBG
debts/NNS
,/,
the/DT
trust/NN
and/CC
corporation/NN
will/MD
consider/VB
a/DT
number/NN
of/IN
options/NNS
including/VBG
a/DT
stock/NN
repurchase/NN
,/,
payment/NN
of/IN
special/JJ
dividend/NN
or/CC
investment/NN
in/IN
more/JJR
gaming/NN
properties/NNS
./.
The/DT
companies/NNS
will/MD
retain/VB
their/PRP$
current/JJ
regular/JJ
quarterly/JJ
dividend/NN
of/IN
25/CD
cents/NNS
during/IN
the/DT
sale/NN
process/NN
,/,
Mr./NNP
Rothman/NNP
said/VBD
./.
For/IN
the/DT
first/JJ
six/CD
months/NNS
,/,
the/DT
trust/NN
and/CC
corporation/NN
had/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
244,000/CD
./.
Baxter/NNP
International/NNP
Inc./NNP
,/,
citing/VBG
cost-cutting/JJ
moves/NNS
and/CC
increased/VBN
sales/NNS
of/IN
its/PRP$
home-care/JJ
products/NNS
and/CC
dialysis/NN
treatments/NNS
,/,
posted/VBD
a/DT
20/CD
%/NN
rise/NN
in/IN
third-quarter/JJ
net/JJ
income/NN
on/IN
a/DT
5.9/CD
%/NN
sales/NNS
boost/NN
./.
The/DT
Deerfield/NNP
,/,
Ill./NNP
,/,
medical/JJ
products/NNS
and/CC
services/NNS
company/NN
posted/VBD
net/NN
of/IN
$/$
102/CD
million/CD
,/,
or/CC
34/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
$/$
85/CD
million/CD
,/,
or/CC
28/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
ago/IN
./.
Sales/NNS
totaled/VBD
$/$
1.81/CD
billion/CD
up/IN
from/IN
$/$
1.71/CD
billion/CD
the/DT
previous/JJ
year/NN
./.
For/IN
the/DT
nine-month/JJ
period/NN
,/,
Baxter/NNP
said/VBD
net/NN
rose/VBD
15/CD
%/NN
to/TO
$/$
307/CD
million/CD
,/,
or/CC
$/$
1.02/CD
a/DT
share/NN
,/,
from/IN
$/$
267/CD
million/CD
,/,
or/CC
89/CD
cents/NNS
a/DT
share/NN
,/,
during/IN
the/DT
year-ago/JJ
period/NN
./.
Sales/NNS
for/IN
the/DT
nine/CD
months/NNS
were/VBD
up/IN
8/CD
%/NN
to/TO
$/$
5.44/CD
billion/CD
from/IN
$/$
5.04/CD
billion/CD
in/IN
the/DT
same/JJ
period/NN
in/IN
1988/CD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Baxter/NNP
closed/VBD
at/IN
$/$
22.25/CD
a/DT
share/NN
,/,
down/IN
12.5/CD
cents/NNS
./.
A/DT
group/NN
bidding/NN
for/IN
American/NNP
Medical/NNP
International/NNP
Inc./NNP
,/,
New/NNP
York/NNP
,/,
said/VBD
it/PRP
formally/RB
received/VBD
the/DT
final/JJ
financing/NN
needed/VBN
for/IN
a/DT
$/$
3/CD
billion/CD
bid/NN
for/IN
about/IN
86/CD
%/NN
of/IN
the/DT
hospital/NN
operator/NN
's/POS
stock/NN
./.
The/DT
offer/NN
from/IN
IMA/NNP
Acquisition/NNP
Corp./NNP
,/,
for/IN
as/RB
many/JJ
as/IN
63/CD
million/CD
shares/NNS
,/,
is/VBZ
set/VBN
to/TO
expire/VB
Wednesday/NNP
./.
Earlier/RBR
this/DT
month/NN
,/,
IMA/NNP
said/VBD
it/PRP
had/VBD
received/VBN
about/IN
$/$
1/CD
billion/CD
of/IN
senior/JJ
debt/NN
financing/NN
from/IN
Chemical/NNP
Bank/NNP
and/CC
six/CD
other/JJ
banks/NNS
;/:
Chemical/NNP
Bank/NNP
said/VBD
it/PRP
was/VBD
``/``
highly/RB
confident/JJ
''/''
it/PRP
could/MD
arrange/VB
the/DT
balance/NN
of/IN
about/IN
$/$
509/CD
million/CD
./.
In/IN
addition/NN
,/,
the/DT
$/$
3/CD
billion/CD
bid/NN
includes/VBZ
$/$
1/CD
billion/CD
of/IN
debt/NN
that/WDT
will/MD
be/VB
assumed/VBN
by/IN
IMA/NNP
,/,
$/$
600/CD
million/CD
of/IN
high-yield/JJ
junk/NN
bonds/NNS
that/WDT
will/MD
be/VB
sold/VBN
by/IN
First/NNP
Boston/NNP
Corp./NNP
and/CC
$/$
285/CD
million/CD
of/IN
equity/NN
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/NN
trading/NN
yesterday/NN
,/,
American/NNP
Medical/NNP
closed/VBD
at/IN
$/$
23.625/CD
,/,
up/IN
$/$
1.875/CD
./.
American/NNP
Medical/NNP
has/VBZ
agreed/VBN
to/TO
the/DT
offer/NN
,/,
but/CC
earlier/RBR
this/DT
month/NN
said/VBD
it/PRP
had/VBD
received/VBN
new/JJ
``/``
expressions/NNS
of/IN
interest/NN
''/''
from/IN
two/CD
previous/JJ
bidders/NNS
./.
American/NNP
Medical/NNP
said/VBD
it/PRP
would/MD
pursue/VB
the/DT
inquiries/NNS
from/IN
the/DT
companies/NNS
,/,
but/CC
would/MD
n't/RB
identify/VB
them/PRP
unless/IN
they/PRP
make/VBP
firm/JJ
offers/NNS
./.
H&R/NNP
Block/NNP
is/VBZ
one/CD
of/IN
the/DT
great/JJ
success/NN
stories/NNS
of/IN
U.S./NNP
business/NN
./.
Oddly/RB
enough/RB
,/,
this/DT
presents/VBZ
a/DT
problem/NN
for/IN
the/DT
stock/NN
./.
Some/DT
money/NN
managers/NNS
are/VBP
disenchanted/VBN
with/IN
H&R/NNP
Block/NNP
because/IN
they/PRP
suspect/VBP
the/DT
company/NN
's/POS
glory/NN
days/NNS
are/VBP
past/JJ
,/,
or/CC
at/IN
least/JJS
passing/NN
./.
Block/NNP
's/POS
tax-preparation/NN
business/NN
is/VBZ
mature/JJ
,/,
they/PRP
say/VBP
,/,
and/CC
some/DT
of/IN
its/PRP$
diversifications/NNS
are/VBP
facing/VBG
tough/JJ
competition/NN
./.
It/PRP
's/VBZ
no/RB
secret/JJ
that/IN
Block/NNP
dominates/VBZ
the/DT
mass-market/JJ
tax-preparation/NN
business/NN
./.
The/DT
Street/NNP
knows/VBZ
all/DT
about/IN
the/DT
predictability/NN
of/IN
its/PRP$
earnings/NNS
,/,
which/WDT
are/VBP
headed/VBN
for/IN
a/DT
ninth/JJ
consecutive/JJ
yearly/JJ
increase/NN
./.
The/DT
company/NN
has/VBZ
consistently/RB
earned/VBN
more/RBR
than/IN
a/DT
20/CD
%/NN
annual/JJ
return/NN
on/IN
its/PRP$
net/JJ
worth/NN
while/IN
many/JJ
companies/NNS
would/MD
be/VB
happy/JJ
with/IN
15/CD
%/NN
./.
But/CC
the/DT
tax-preparation/NN
business/NN
simply/RB
has/VBZ
no/DT
more/JJR
room/NN
to/TO
grow/VB
,/,
says/VBZ
Mark/NNP
Cremonie/NNP
,/,
director/NN
of/IN
research/NN
for/IN
Capital/NNP
Supervisors/NNPS
Inc./NNP
,/,
a/DT
Chicago/NNP
firm/NN
that/WDT
manages/VBZ
$/$
6.5/CD
billion/CD
./.
``/``
You/PRP
go/VBP
to/TO
any/DT
medium-sized/JJ
town/NN
in/IN
the/DT
U.S./NNP
and/CC
you/PRP
're/VBP
going/VBG
to/TO
see/VB
H&R/NNP
Block/NNP
tax/NN
services/NNS
./.
''/''
Mr./NNP
Cremonie/NNP
's/POS
firm/NN
once/RB
held/VBD
about/IN
4.8/CD
%/NN
of/IN
H&R/NNP
Block/NNP
./.
That/DT
was/VBD
before/IN
the/DT
1986/CD
tax/NN
``/``
reform/NN
''/''
made/VBN
taxes/NNS
more/RBR
complex/JJ
than/IN
ever/RB
./.
``/``
One/CD
thing/NN
you/PRP
can/MD
bet/VB
on/IN
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
is/VBZ
that/IN
Congress/NNP
will/MD
do/VB
stupid/JJ
things/NNS
with/IN
the/DT
Tax/NNP
Code/NNP
./.
''/''
But/CC
Capital/NNP
Supervisors/NNPS
sold/VBD
the/DT
last/JJ
of/IN
its/PRP$
H&R/NNP
Block/NNP
holdings/NNS
earlier/RBR
this/DT
year/NN
./.
``/``
They/PRP
're/VBP
thrashing/VBG
around/IN
for/IN
diversification/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
I/PRP
think/VBP
a/DT
lot/NN
of/IN
their/PRP$
businesses/NNS
are/VBP
just/RB
so-so/JJ
./.
''/''
Last/JJ
week/NN
the/DT
stock/NN
hit/VBD
an/DT
all-time/JJ
high/NN
of/IN
37/CD
1\/4/CD
before/IN
getting/VBG
roughed/VBD
up/IN
in/IN
the/DT
Friday-the-13th/JJ
minicrash/NN
./.
It/PRP
closed/VBD
yesterday/NN
at/IN
34/CD
3\/4/CD
./.
To/TO
be/VB
sure/JJ
,/,
the/DT
stock/NN
still/RB
has/VBZ
a/DT
lot/NN
of/IN
fans/NNS
./.
``/``
If/IN
you/PRP
invested/VBD
$/$
10,000/CD
in/IN
the/DT
initial/JJ
public/JJ
offering/NN
in/IN
1962/CD
,/,
it/PRP
would/MD
be/VB
worth/JJ
well/RB
over/IN
$/$
5/CD
million/CD
today/NN
,/,
''/''
says/VBZ
Fredric/NNP
E./NNP
Russell/NNP
,/,
a/DT
Tulsa/NNP
,/,
Okla./NNP
,/,
money/NN
manager/NN
./.
``/``
I/PRP
do/VBP
n't/RB
know/VB
what/WP
the/DT
risk/NN
is/VBZ
{/(
of/IN
holding/VBG
the/DT
stock/NN
Taxes/NNS
are/VBP
not/RB
going/VBG
out/IN
of/IN
business/NN
./.
''/''
Many/JJ
of/IN
his/PRP$
peers/NNS
feel/VBP
the/DT
same/JJ
way/NN
./.
The/DT
number/NN
of/IN
big/JJ
institutions/NNS
that/IN
own/JJ
H&R/NNP
Block/NNP
shares/NNS
is/VBZ
207/CD
and/CC
growing/VBG
,/,
according/VBG
to/TO
a/DT
midyear/NN
tally/NN
by/IN
CDA/NNP
Investment/NNP
Technologies/NNPS
./.
Brokerage/NN
houses/NNS
are/VBP
sweet/JJ
on/IN
H&R/NNP
Block/NNP
,/,
too/RB
./.
Zacks/NNP
Investment/NNP
Research/NNP
counts/VBZ
five/CD
brokerage/NN
houses/NNS
that/WDT
consider/VBP
the/DT
stock/NN
a/DT
buy/NN
,/,
and/CC
four/CD
that/WDT
call/VBP
it/PRP
a/DT
hold/NN
./.
None/NN
dare/MD
say/VB
to/TO
sell/VB
it/PRP
./.
But/CC
some/DT
money/NN
managers/NNS
are/VBP
doing/VBG
just/RB
that/DT
./.
Eugene/NNP
Sit/NNP
,/,
president/NN
of/IN
Sit/NNP
Investment/NNP
Associates/NNPS
in/IN
Minneapolis/NNP
,/,
says/VBZ
,/,
``/``
When/WRB
we/PRP
bought/VBD
it/PRP
,/,
we/PRP
thought/VBD
the/DT
growth/NN
rate/NN
was/VBD
going/VBG
to/TO
accelerate/VB
''/''
because/IN
of/IN
computerized/JJ
tax/NN
filing/VBG
and/CC
instant/NN
refunds/NNS
the/DT
customer/NN
gets/VBZ
a/DT
refund/NN
immediately/RB
but/CC
pays/VBZ
extra/JJ
to/TO
the/DT
tax/NN
preparer/NN
,/,
which/WDT
waits/VBZ
for/IN
Uncle/NNP
Sam/NNP
's/POS
check/NN
But/CC
neither/DT
of/IN
those/DT
developments/NNS
did/VBD
much/RB
to/TO
juice/NN
up/IN
growth/NN
,/,
Mr./NNP
Sit/NNP
says/VBZ
./.
He/PRP
figures/VBZ
Block/NNP
earnings/NNS
are/VBP
now/RB
growing/VBG
at/IN
about/IN
a/DT
10/CD
%/NN
annual/JJ
rate/NN
14/CD
%/NN
the/DT
past/JJ
five/CD
years/NNS
an/DT
8%-10/CD
%/NN
rate/NN
in/IN
the/DT
future/NN
./.
That/DT
's/VBZ
``/``
not/RB
bad/JJ
,/,
''/''
Mr./NNP
Sit/NNP
says/VBZ
,/,
but/CC
it/PRP
sure/RB
does/VBZ
n't/RB
justify/VB
Block/NNP
shares/NNS
being/VBG
priced/VBN
at/IN
15/CD
to/TO
16/CD
times/NNS
estimated/VBD
earnings/NNS
for/IN
fiscal/JJ
1990/CD
./.
He/PRP
wants/VBZ
stocks/NNS
whose/WP$
price\/earnings/NNS
ratio/NN
is/VBZ
less/JJR
than/IN
their/PRP$
growth/NN
rate/NN
;/:
as/IN
he/PRP
figures/VBZ
it/PRP
,/,
H&R/NNP
Block/NNP
does/VBZ
n't/RB
even/RB
come/VB
close/RB
./.
Two/CD
other/JJ
money/NN
managers/NNS
,/,
in/IN
explaining/VBG
why/WRB
they/PRP
have/VBP
sold/VBN
large/JJ
amounts/NNS
of/IN
H&R/NNP
Block/NNP
stock/NN
this/DT
year/NN
,/,
spoke/VBD
on/IN
the/DT
condition/NN
they/PRP
not/RB
be/VB
named/VBN
./.
``/``
The/DT
stock/NN
was/VBD
going/VBG
no/DT
place/NN
and/CC
the/DT
earnings/NNS
were/VBD
so-so/JJ
,/,
''/''
said/VBD
one/CD
./.
the/DT
past/JJ
two/CD
years/NNS
,/,
the/DT
stock/NN
almost/RB
stalled/VBD
out/IN
./.
It/PRP
was/VBD
above/IN
33/CD
,/,
adjusted/VBN
for/IN
a/DT
subsequent/JJ
split/NN
,/,
in/IN
1987/CD
,/,
and/CC
has/VBZ
n't/RB
gotten/VBN
much/RB
higher/JJR
since/IN
./.
``/``
There/EX
's/VBZ
no/DT
more/JJR
growth/NN
in/IN
the/DT
tax/NN
business/NN
prices/NNS
,/,
''/''
the/DT
money/NN
manager/NN
added/VBD
./.
The/DT
CompuServe/NNP
subsidiary/NN
which/WDT
provides/VBZ
information/NN
to/TO
home-computer/NN
users/NNS
the/DT
growth/NN
is/VBZ
,/,
''/''
he/PRP
said/VBD
,/,
but/CC
its/PRP$
format/NN
is/VBZ
``/``
still/RB
too/RB
complicated/VBN
./.
''/''
CompuServe/NNP
provides/VBZ
about/IN
20/CD
%/NN
of/IN
both/DT
sales/NNS
and/CC
earnings/NNS
./.
The/DT
tax/NN
business/NN
still/RB
provides/VBZ
about/IN
70/CD
%/NN
of/IN
earnings/NNS
,/,
on/IN
about/IN
50/CD
%/NN
of/IN
sales/NNS
./.
Personnel/NNP
Pool/NNP
temporary/JJ
workers/NNS
,/,
mostly/RB
in/IN
the/DT
health-care/JJ
area/NN
chips/NNS
in/IN
close/NN
to/TO
25/CD
%/NN
of/IN
sales/NNS
but/CC
only/RB
about/IN
9/CD
%/NN
of/IN
earnings/NNS
./.
The/DT
shortage/NN
of/IN
nurses/NNS
is/VBZ
crimping/VBG
profit/NN
at/IN
Personnel/NNP
Pool/NNP
,/,
said/VBD
the/DT
second/JJ
money/NN
manager/NN
./.
He/PRP
concedes/VBZ
H&R/NNP
Block/NNP
is/VBZ
``/``
well-entrenched/JJ
''/''
and/CC
``/``
a/DT
great/JJ
company/NN
,/,
''/''
but/CC
says/VBZ
``/``
it/PRP
does/VBZ
n't/RB
grow/VB
fast/RB
enough/RB
for/IN
us/PRP
./.
We/PRP
're/VBP
looking/VBG
for/IN
something/NN
that/WDT
grows/VBZ
faster/RBR
and/CC
sells/VBZ
at/IN
a/DT
comparable/JJ
price-earnings/NNS
multiple/JJ
./.
''/''
Thomas/NNP
M./NNP
Bloch/NNP
,/,
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
,/,
says/VBZ
``/``
I/PRP
would/MD
disagree/VB
''/''
that/IN
the/DT
tax/NN
business/NN
is/VBZ
mature/JJ
./.
For/IN
example/NN
,/,
he/PRP
says/VBZ
,/,
the/DT
company/NN
is/VBZ
planning/VBG
to/TO
go/VB
nationwide/JJ
with/IN
a/DT
new/JJ
service/NN
,/,
tested/VBN
in/IN
parts/NNS
of/IN
the/DT
country/NN
,/,
aimed/VBN
at/IN
taxpayers/NNS
who/WP
want/VBP
refunds/NNS
in/IN
a/DT
hurry/NN
./.
Mr./NNP
Bloch/NNP
concedes/VBZ
that/IN
a/DT
recent/JJ
diversification/NN
attempt/NN
fell/VBD
through/IN
./.
``/``
We/PRP
're/VBP
still/RB
interested/VBN
{/(
in/IN
diversifying/VBG
}/)
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
but/CC
we/PRP
'd/MD
rather/RB
be/VB
prudent/JJ
than/IN
make/VB
a/DT
mistake/NN
./.
''/''
He/PRP
also/RB
says/VBZ
CompuServe/NNP
's/POS
earnings/NNS
continue/VBP
to/TO
grow/VB
``/``
20/CD
%/NN
to/TO
30/CD
%/NN
a/DT
year/NN
''/''
in/IN
spite/NN
of/IN
tough/JJ
competition/NN
from/IN
giants/NNS
like/IN
Sears/NNP
and/CC
IBM/NNP
./.
And/CC
he/PRP
says/VBZ
Block/NNP
's/POS
other/JJ
businesses/NNS
are/VBP
growing/VBG
,/,
although/IN
less/RBR
consistently/RB
./.
H&R/NNP
Block/NNP
NYSE/NNP
;/:
Symbol:HRB/NNP
Business/NN
:/:
Tax/NNP
Preparation/NNP
Year/NN
ended/VBD
April/NNP
30/CD
,/,
1989/CD
:/:
Revenue/NN
:/:
$/$
899.6/CD
million/CD
Net/JJ
loss/NN
:/:
$/$
100.2/CD
million/CD
;/:
$/$
1.90/CD
a/DT
share/NN
First/JJ
quarter/NN
,/,
July/NNP
31/CD
,/,
1989/CD
:/:
Per-share/JJ
earnings/NNS
:/:
Loss/NN
of/IN
8/CD
cents/NNS
vs./CC
loss/NN
of/IN
9/CD
cents/NNS
Average/JJ
daily/JJ
trading/NN
volume/NN
:/:
145,954/CD
shares/NNS
Common/JJ
shares/NNS
outstanding/JJ
:/:
52.6/CD
million/CD
Philips/NNP
Industries/NNPS
Inc./NNP
said/VBD
its/PRP$
board/NN
authorized/VBD
the/DT
redemption/NN
Dec./NNP
6/CD
of/IN
the/DT
company/NN
's/POS
$/$
1/CD
cumulative/JJ
convertible/JJ
special/JJ
preferred/VBN
stock/NN
at/IN
$/$
37.50/CD
a/DT
share/NN
,/,
not/RB
including/VBG
a/DT
25/CD
cent/NN
dividend/NN
for/IN
the/DT
current/JJ
quarter/NN
,/,
and/CC
the/DT
$/$
3/CD
cumulative/JJ
convertible/JJ
preferred/VBN
stock/NN
at/IN
$/$
75/CD
,/,
plus/CC
a/DT
75/CD
cent/NN
dividend/NN
for/IN
the/DT
current/JJ
quarter/NN
./.
The/DT
Dayton/NNP
,/,
Ohio/NNP
,/,
maker/NN
of/IN
parts/NNS
for/IN
the/DT
building/NN
and/CC
transportation/NN
industries/NNS
said/VBD
holders/NNS
of/IN
the/DT
two/CD
issues/NNS
can/MD
convert/VB
their/PRP$
stock/NN
into/IN
common/JJ
shares/NNS
through/IN
the/DT
close/NN
of/IN
business/NN
Dec./NNP
1/CD
./.
Each/DT
$/$
1/CD
cumulative/JJ
share/NN
can/MD
be/VB
converted/VBN
into/IN
4.92/CD
common/JJ
shares/NNS
;/:
the/DT
ratio/NN
on/IN
the/DT
$/$
3/CD
cumulative/JJ
is/VBZ
eight/CD
common/JJ
shares/NNS
for/IN
each/DT
$/$
3/CD
cumulative/JJ
preferred/VBN
./.
Philips/NNP
did/VBD
n't/RB
indicate/VB
how/WRB
many/JJ
shares/NNS
outstanding/JJ
it/PRP
has/VBZ
of/IN
either/DT
issue/NN
./.
Company/NN
officials/NNS
could/MD
n't/RB
be/VB
reached/VBN
./.
Earlier/RBR
this/DT
month/NN
the/DT
company/NN
said/VBD
its/PRP$
board/NN
approved/VBD
a/DT
proposed/VBN
management-led/JJ
leveraged/JJ
buy-out/NN
at/IN
$/$
25.50/CD
a/DT
share/NN
,/,
or/CC
$/$
750/CD
million/CD
./.
its/PRP$
centennial/NN
year/NN
,/,
The/DT
Wall/NNP
Street/NNP
Journal/NNP
will/MD
report/VB
events/NNS
of/IN
the/DT
past/JJ
century/NN
that/DT
stand/VBP
as/IN
milestones/NNS
of/IN
American/JJ
business/NN
history/NN
./.
PUTS/NNPS
AND/CC
CALLS/NNPS
,/,
STOCK/NNP
MARKET/NNP
PATOIS/NNP
for/IN
options/NNS
to/TO
sell/VB
or/CC
buy/VB
a/DT
company/NN
's/POS
shares/NNS
,/,
were/VBD
long/RB
an/DT
arcane/JJ
Wall/NNP
Street/NNP
art/NN
best/RB
left/VBN
to/TO
the/DT
experts/NNS
,/,
who/WP
used/VBD
them/PRP
either/CC
as/IN
a/DT
hedge/NN
or/CC
for/IN
pure/JJ
speculation/NN
./.
Options/NNS
lost/VBD
some/DT
of/IN
their/PRP$
mystery/NN
in/IN
1973/CD
when/WRB
the/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
set/VBD
up/IN
a/DT
special/JJ
exchange/NN
to/TO
deal/VB
in/IN
them/PRP
./.
Until/IN
then/RB
,/,
options/NNS
had/VBD
been/VBN
traded/VBN
only/RB
in/IN
the/DT
over-the-counter/JJ
market/NN
,/,
mostly/RB
in/IN
New/NNP
York/NNP
,/,
and/CC
in/IN
an/DT
almost/RB
invisible/JJ
secondary/JJ
market/NN
operating/VBG
chiefly/RB
by/IN
telephone/NN
./.
The/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
,/,
the/DT
No./NN
1/CD
U.S./NNP
grain/NN
market/NN
,/,
had/VBD
long/RB
chafed/VBN
under/IN
the/DT
attention/NN
won/VBN
by/IN
its/PRP$
innovative/JJ
archrival/JJ
,/,
the/DT
livestock-dealing/JJ
Mercantile/NNP
Exchange/NNP
./.
So/IN
the/DT
men/NNS
who/WP
ran/VBD
the/DT
grain/NN
pits/NNS
listened/VBD
when/WRB
Joseph/NNP
Sullivan/NNP
,/,
a/DT
35-year-old/JJ
former/JJ
Wall/NNP
Street/NNP
Journal/NNP
newsman/NN
,/,
offered/VBD
them/PRP
the/DT
idea/NN
of/IN
all-options/JJ
trading/NN
./.
After/IN
four/CD
year/NN
of/IN
tinkering/NN
and/CC
$/$
2.4/CD
million/CD
in/IN
seed/NN
money/NN
,/,
the/DT
board/NN
set/VBD
up/IN
the/DT
new/JJ
marketplace/NN
,/,
titled/VBD
it/PRP
the/DT
Chicago/NNP
Board/NNP
Options/NNPS
Exchange/NNP
,/,
and/CC
named/VBD
Sullivan/NNP
its/PRP$
first/JJ
president/NN
./.
The/DT
beginnings/NNS
were/VBD
modest/JJ
./.
The/DT
CBOE/NNP
opened/VBD
for/IN
business/NN
on/IN
April/NNP
26/CD
,/,
1973/CD
,/,
in/IN
what/WP
had/VBD
been/VBN
a/DT
Board/NNP
of/IN
Trade/NNP
lunchroom/NN
./.
It/PRP
listed/VBD
just/RB
16/CD
options/NNS
to/TO
buy/VB
a/DT
``/``
pilot/NN
list/NN
''/''
of/IN
stocks/NNS
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
options/NNS
,/,
would/MD
not/RB
be/VB
added/VBN
until/IN
1977/CD
./.
The/DT
282/CD
members/NNS
had/VBD
paid/VBN
$/$
10,000/CD
apiece/RB
for/IN
seats/NNS
./.
The/DT
1989/CD
price/NN
:/:
$/$
250,000/CD
./.
The/DT
first/JJ
day/NN
's/POS
business/NN
was/VBD
911/CD
contracts/NNS
each/DT
for/IN
100/CD
shares/NNS
of/IN
one/CD
of/IN
the/DT
listed/VBN
stocks/NNS
By/IN
the/DT
end/NN
of/IN
1973/CD
,/,
the/DT
number/NN
of/IN
``/``
underlying/VBG
''/''
Big/NNP
Board/NNP
stocks/NNS
had/VBD
been/VBN
increased/VBN
to/TO
50/CD
and/CC
the/DT
options/NNS
exchange/NN
had/VBD
run/VBN
up/IN
volume/NN
of/IN
1.1/CD
million/CD
contracts/NNS
./.
A/DT
year/NN
later/RB
,/,
it/PRP
was/VBD
5.7/CD
million/CD
./.
Last/JJ
year/NN
,/,
more/RBR
than/IN
1,800/CD
traders/NNS
on/IN
the/DT
CBOE/NNP
bought/VBD
and/CC
sold/VBD
112/CD
million/CD
contracts/NNS
on/IN
178/CD
listed/VBN
stocks/NNS
,/,
60/CD
%/NN
of/IN
all/DT
U.S./NNP
listed/VBD
options/NNS
trading/NN
./.
The/DT
new/JJ
exchange/NN
drew/VBD
instant/JJ
recognition/NN
from/IN
an/DT
unwelcome/JJ
quarter/NN
./.
The/DT
government/NN
,/,
campaigning/VBG
against/IN
fixed/VBN
brokerage/NN
commissions/NNS
,/,
promptly/RB
sued/VBD
the/DT
CBOE/NNP
over/IN
its/PRP$
minimum-fee/JJ
system/NN
./.
The/DT
Nuclear/NNP
Regulatory/NNP
Commission/NNP
ruled/VBD
unanimously/RB
that/IN
the/DT
financial/JJ
troubles/NNS
facing/VBG
the/DT
Seabrook/NNP
,/,
N.H./NNP
,/,
nuclear-power/JJ
plant/NN
have/VBP
no/DT
impact/NN
on/IN
whether/IN
the/DT
plant/NN
receives/VBZ
a/DT
full-power/JJ
license/NN
./.
Massachusetts/NNP
Attorney/NNP
General/NNP
James/NNP
Shannon/NNP
,/,
opposing/VBG
the/DT
license/NN
,/,
said/VBD
he/PRP
will/MD
appeal/VB
the/DT
ruling/NN
in/IN
federal/JJ
court/NN
./.
Seabrook/NNP
officials/NNS
said/VBD
the/DT
plant/NN
could/MD
receive/VB
a/DT
full-power/JJ
license/NN
by/IN
the/DT
end/NN
of/IN
the/DT
year/NN
./.
The/DT
NRC/NNP
rejected/VBD
Mr./NNP
Shannon/NNP
's/POS
argument/NN
that/IN
Public/NNP
Service/NNP
Co./NNP
of/IN
New/NNP
Hampshire/NNP
,/,
which/WDT
owns/VBZ
the/DT
largest/JJS
share/NN
of/IN
Seabrook/NNP
,/,
and/CC
11/CD
other/JJ
owners/NNS
are/VBP
financially/RB
unable/JJ
to/TO
guarantee/VB
the/DT
plant/NN
's/POS
safe/JJ
operation/NN
./.
Mr./NNP
Shannon/NNP
was/VBD
seeking/VBG
a/DT
waiver/NN
of/IN
NRC/NNP
policy/NN
that/WDT
ignores/VBZ
financial/JJ
considerations/NNS
in/IN
making/VBG
licensing/NN
decisions/NNS
./.
In/IN
its/PRP$
ruling/NN
,/,
the/DT
NRC/NNP
said/VBD
that/IN
because/IN
Seabrook/NNP
will/MD
be/VB
allowed/VBN
to/TO
charge/VB
rates/NNS
sufficient/JJ
to/TO
run/VB
the/DT
plant/NN
and/CC
make/VB
payments/NNS
on/IN
past/JJ
construction/NN
costs/NNS
,/,
consideration/NN
of/IN
the/DT
owners/NNS
'/POS
financial/JJ
condition/NN
is/VBZ
pointless/JJ
./.
``/``
The/DT
commissioners/NNS
found/VBD
the/DT
circumstances/NNS
of/IN
the/DT
case/NN
did/VBD
n't/RB
undercut/JJ
the/DT
assurance/NN
from/IN
government/NN
rate/NN
setters/NNS
of/IN
available/JJ
funds/NNS
adequate/JJ
for/IN
safe/JJ
operation/NN
,/,
''/''
said/VBD
a/DT
commission/NN
spokesman/NN
./.
In/IN
January/NNP
1988/CD
,/,
the/DT
utility/NN
filed/VBD
for/IN
protection/NN
under/IN
Chapter/NN
11/CD
of/IN
the/DT
federal/JJ
Bankruptcy/NNP
Code/NNP
,/,
allowing/VBG
it/PRP
to/TO
continue/VB
to/TO
operate/VB
while/IN
protected/VBN
from/IN
creditors/NNS
'/POS
lawsuits/NNS
./.
Bristol-Myers/NNP
Squibb/NNP
Co./NNP
,/,
New/NNP
York/NNP
,/,
the/DT
newly/RB
merged/VBN
drug/NN
and/CC
health-care-product/NN
company/NN
,/,
reported/VBD
record/NN
third-quarter/NN
earnings/NNS
for/IN
both/DT
companies/NNS
in/IN
the/DT
merger/NN
./.
Bristol-Myers/NNP
Co./NNP
and/CC
Squibb/NNP
Corp./NNP
,/,
Princeton/NNP
,/,
N.J./NNP
,/,
merged/VBD
Oct./NNP
4/CD
,/,
but/CC
the/DT
new/JJ
company/NN
reported/VBD
third-period/JJ
earnings/NNS
for/IN
both/DT
companies/NNS
./.
For/IN
the/DT
fourth/JJ
quarter/NN
,/,
Bristol-Myers/NNP
Squibb/NNP
will/MD
report/VB
one/CD
set/NN
of/IN
earnings/NNS
./.
Bristol-Myers/NNP
said/VBD
net/JJ
income/NN
rose/VBD
15/CD
%/NN
to/TO
$/$
266.2/CD
million/CD
,/,
or/CC
93/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
232.3/CD
million/CD
,/,
or/CC
81/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
gained/VBD
5/CD
%/NN
to/TO
$/$
1.59/CD
billion/CD
from/IN
$/$
1.52/CD
billion/CD
./.
Squibb/NNP
Corp./NNP
said/VBD
net/NN
rose/VBD
17/CD
%/NN
to/TO
$/$
144.5/CD
million/CD
,/,
or/CC
$/$
1.47/CD
a/DT
share/NN
,/,
from/IN
$/$
123/CD
million/CD
,/,
or/CC
$/$
1.25/CD
a/DT
share/NN
./.
Sales/NNS
were/VBD
$/$
730.1/CD
million/CD
,/,
up/IN
7/CD
%/NN
from/IN
$/$
679.5/CD
million/CD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Bristol-Myers/NNP
Squibb/NNP
rose/VBD
$/$
1.75/CD
to/TO
$/$
52.75/CD
./.
PPG/NNP
Industries/NNPS
Inc./NNP
,/,
hurt/VBN
by/IN
softness/NN
in/IN
the/DT
U.S./NNP
automotive/JJ
and/CC
construction/NN
industries/NNS
,/,
said/VBD
third-quarter/NN
net/NN
income/NN
fell/VBD
5.5/CD
%/NN
to/TO
$/$
106.7/CD
million/CD
,/,
or/CC
97/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
112.9/CD
million/CD
,/,
or/CC
$/$
1.03/CD
a/DT
share/NN
,/,
a/DT
year/NN
ago/IN
./.
Sales/NNS
were/VBD
nearly/RB
identical/JJ
to/TO
the/DT
year-earlier/JJ
$/$
1.36/CD
billion/CD
./.
The/DT
drop/NN
in/IN
earnings/NNS
did/VBD
n't/RB
surprise/VB
analysts/NNS
who/WP
said/VBD
the/DT
Pittsburgh/NNP
glass/NN
,/,
coatings/NNS
and/CC
chemical/NN
concern/NN
had/VBD
been/VBN
predicting/VBG
a/DT
slow/JJ
quarter/NN
because/IN
of/IN
the/DT
sluggish/JJ
construction/NN
industry/NN
,/,
a/DT
major/JJ
market/NN
for/IN
the/DT
company/NN
's/POS
flat/JJ
glass/NN
./.
Glass/NN
sales/NNS
to/TO
Canadian/JJ
and/CC
European/JJ
auto/NN
makers/NNS
and/CC
sales/NNS
of/IN
replacement/NN
auto/NN
glass/NN
in/IN
all/DT
markets/NNS
increased/VBD
./.
The/DT
coating/NN
segment/NN
also/RB
posted/VBD
higher/JJR
sales/NNS
particularly/RB
in/IN
North/NNP
America/NNP
and/CC
Europe/NNP
./.
But/CC
sale/NN
increases/NNS
were/VBD
offset/VBN
by/IN
slumping/VBG
sales/NNS
in/IN
flat/JJ
glass/NN
and/CC
fiberglass/NNS
reinforcements/NNS
,/,
the/DT
company/NN
said/VBD
./.
Also/RB
,/,
chemicals/NNS
sales/NNS
were/VBD
slightly/RB
down/IN
because/IN
of/IN
lower/JJR
prices/NNS
for/IN
vinyl/NN
chloride/NN
monomer/NN
and/CC
other/JJ
chlorine/NN
derivatives/NNS
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
PPG/NNP
closed/VBD
at/IN
$/$
41/CD
a/DT
share/NN
,/,
down/IN
37.5/CD
cents/NNS
./.
Jefferies/NNP
Group/NNP
Inc./NNP
said/VBD
third-quarter/NN
net/NN
income/NN
fell/VBD
4/CD
%/NN
,/,
to/TO
$/$
2.2/CD
million/CD
,/,
or/CC
35/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
2.3/CD
million/CD
,/,
or/CC
31/CD
cents/NNS
a/DT
share/NN
on/IN
more/JJR
shares/NNS
,/,
a/DT
year/NN
earlier/RBR
./.
Revenue/NN
rose/VBD
15/CD
%/NN
,/,
to/TO
$/$
36/CD
million/CD
from/IN
$/$
31.2/CD
million/CD
./.
Jefferies/NNP
,/,
a/DT
Los/NNP
Angeles/NNP
holding/VBG
company/NN
primarily/RB
engaged/VBN
in/IN
securities/NNS
trading/NN
,/,
also/RB
said/VBD
stock/NN
market/NN
declines/VBZ
since/IN
the/DT
quarter/NN
ended/VBD
Sept./NNP
30/CD
created/VBD
an/DT
unrealized/JJ
pretax/NN
loss/NN
of/IN
about/IN
$/$
6/CD
million/CD
in/IN
its/PRP$
risk/NN
arbitrage/NN
account/NN
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Jefferies/NNP
said/VBD
net/NN
fell/VBD
39/CD
%/NN
,/,
to/TO
$/$
6.8/CD
million/CD
,/,
or/CC
$/$
1.07/CD
a/DT
share/NN
,/,
from/IN
$/$
11.1/CD
million/CD
,/,
or/CC
$/$
1.50/CD
a/DT
share/NN
./.
Revenue/NN
fell/VBD
3/CD
%/NN
,/,
to/TO
$/$
105.2/CD
million/CD
from/IN
$/$
108.4/CD
million/CD
./.
Sony/NNP
Corp./NNP
,/,
New/NNP
York/NNP
,/,
said/VBD
its/PRP$
bids/NNS
for/IN
Columbia/NNP
Pictures/NNPS
Entertainment/NNP
Inc./NNP
and/CC
Guber-Peters/NNP
Entertainment/NNP
Co./NNP
have/VBP
been/VBN
cleared/VBN
by/IN
federal/JJ
antitrust/JJ
regulators/NNS
./.
The/DT
Japanese/JJ
company/NN
said/VBD
the/DT
waiting/VBG
period/NN
under/IN
the/DT
Hart-Scott-Rodino/NNP
antitrust/JJ
act/NN
for/IN
the/DT
$/$
3.4/CD
billion/CD
bid/NN
for/IN
Columbia/NNP
and/CC
the/DT
$/$
200/CD
million/CD
offer/NN
for/IN
Guber-Peters/NNP
expired/VBD
Monday/NNP
./.
Sony/NNP
has/VBZ
agreed/VBN
to/TO
buy/VB
both/DT
companies/NNS
,/,
but/CC
is/VBZ
in/IN
a/DT
legal/JJ
battle/NN
with/IN
Warner/NNP
Communications/NNPS
Inc./NNP
over/IN
the/DT
services/NNS
of/IN
producers/NNS
Peter/NNP
Guber/NNP
and/CC
Jon/NNP
Peters/NNP
./.
In/IN
a/DT
filing/NN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
,/,
Sony/NNP
also/RB
said/VBD
two/CD
more/JJR
suits/NNS
have/VBP
been/VBN
filed/VBN
opposing/VBG
the/DT
company/NN
's/POS
agreement/NN
to/TO
buy/VB
Columbia/NNP
./.
Sony/NNP
added/VBD
that/IN
a/DT
hearing/NN
has/VBZ
been/VBN
set/VBN
for/IN
Thursday/NNP
in/IN
the/DT
Delaware/NNP
Chancery/NNP
Court/NNP
in/IN
one/CD
of/IN
the/DT
suits/NNS
./.
Thursday/NNP
,/,
October/NNP
19/CD
,/,
1989/CD
The/DT
key/JJ
U.S./NNP
and/CC
foreign/JJ
annual/JJ
interest/NN
rates/NNS
below/IN
are/VBP
a/DT
guide/NN
to/TO
general/JJ
levels/NNS
but/CC
do/VBP
n't/RB
always/RB
represent/VB
actual/JJ
transactions/NNS
./.
PRIME/NNP
RATE/NNP
:/:
10/CD
1\/2/CD
%/NN
./.
The/DT
base/NN
rate/NN
on/IN
corporate/JJ
loans/NNS
at/IN
large/JJ
U.S./NNP
money/NN
center/NN
commercial/JJ
banks/NNS
./.
FEDERAL/JJ
FUNDS/NNS
:/:
8/CD
3\/4/CD
%/NN
high/JJ
,/,
8/CD
5\/8/CD
%/NN
low/JJ
,/,
8/CD
11\/16/CD
%/NN
near/IN
closing/VBG
bid/NN
,/,
8/CD
11\/16/CD
%/NN
offered/VBN
./.
Reserves/NNS
traded/VBN
among/IN
commercial/JJ
banks/NNS
for/IN
overnight/JJ
use/NN
in/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
or/CC
more/JJR
./.
Source/NN
:/:
Fulton/NNP
Prebon/NNP
U.S.A/NNP
./.
Inc/NNP
./.
DISCOUNT/JJ
RATE/NN
:/:
7/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
depository/NN
institutions/NNS
by/IN
the/DT
New/NNP
York/NNP
Federal/NNP
Reserve/NNP
Bank/NNP
./.
CALL/NNP
MONEY/NNP
:/:
9/CD
3\/4/CD
%/NN
to/TO
10/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
brokers/NNS
on/IN
stock/NN
exchange/NN
collateral/NN
./.
COMMERCIAL/JJ
PAPER/NN
placed/VBN
directly/RB
by/IN
General/NNP
Motors/NNPS
Acceptance/NNP
Corp./NNP
:/:
8.45/CD
%/NN
30/CD
to/TO
44/CD
days/NNS
;/:
8.25/CD
%/NN
45/CD
to/TO
73/CD
days/NNS
;/:
8.325/CD
%/NN
74/CD
to/TO
99/CD
days/NNS
;/:
7.75/CD
%/NN
100/CD
to/TO
179/CD
days/NNS
;/:
7.50/CD
%/NN
180/CD
to/TO
270/CD
days/NNS
./.
COMMERCIAL/NNP
PAPER/NNP
:/:
High-grade/JJ
unsecured/JJ
notes/NNS
sold/VBN
through/IN
dealers/NNS
by/IN
major/JJ
corporations/NNS
in/IN
multiples/NNS
of/IN
$/$
1,000/CD
:/:
8.525/CD
%/NN
30/CD
days/NNS
;/:
8.425/CD
%/NN
60/CD
days/NNS
;/:
8.375/CD
%/NN
90/CD
days/NNS
./.
CERTIFICATES/NNPS
OF/IN
DEPOSIT/NNP
:/:
8.05/CD
%/NN
one/CD
month/NN
;/:
8.02/CD
%/NN
two/CD
months/NNS
;/:
8/CD
%/NN
three/CD
months/NNS
;/:
7.98/CD
%/NN
six/CD
months/NNS
;/:
7.95/CD
%/NN
one/CD
year/NN
./.
Average/JJ
of/IN
top/JJ
rates/NNS
paid/VBN
by/IN
major/JJ
New/NNP
York/NNP
banks/NNS
on/IN
primary/JJ
new/JJ
issues/NNS
of/IN
negotiable/JJ
C.D.s/NNS
,/,
usually/RB
on/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
and/CC
more/JJR
./.
The/DT
minimum/JJ
unit/NN
is/VBZ
$/$
100,000/CD
./.
Typical/JJ
rates/NNS
in/IN
the/DT
secondary/JJ
market/NN
:/:
8.60/CD
%/NN
one/CD
month/NN
;/:
8.60/CD
%/NN
three/CD
months/NNS
;/:
8.45/CD
%/NN
six/CD
months/NNS
./.
BANKERS/NNPS
ACCEPTANCES/NNPS
:/:
8.45/CD
%/NN
30/CD
days/NNS
;/:
8.32/CD
%/NN
60/CD
days/NNS
;/:
8.32/CD
%/NN
90/CD
days/NNS
;/:
8.17/CD
%/NN
120/CD
days/NNS
;/:
8.08/CD
%/NN
150/CD
days/NNS
;/:
7.98/CD
%/NN
180/CD
days/NNS
./.
Negotiable/JJ
,/,
bank-backed/JJ
business/NN
credit/NN
instruments/NNS
typically/RB
financing/VBG
an/DT
import/NN
order/NN
./.
LONDON/NNP
LATE/RB
EURODOLLARS/NNPS
:/:
8/CD
11\/16/CD
%/NN
to/TO
8/CD
9\/16/CD
%/NN
one/CD
month/NN
;/:
8/CD
11\/16/CD
%/NN
to/TO
8/CD
9\/16/CD
%/NN
two/CD
months/NNS
;/:
8/CD
11\/16/CD
%/NN
to/TO
8/CD
9\/16/CD
%/NN
three/CD
months/NNS
;/:
8/CD
5\/8/CD
%/NN
to/TO
8/CD
1\/2/CD
%/NN
four/CD
months/NNS
;/:
8/CD
9\/16/CD
%/NN
to/TO
8/CD
7\/16/CD
%/NN
five/CD
months/NNS
;/:
8/CD
9\/16/CD
%/NN
to/TO
8/CD
7\/16/CD
%/NN
six/CD
months/NNS
./.
LONDON/NNP
INTERBANK/NNP
OFFERED/VBN
RATES/NNS
LIBOR/NNP
8/CD
3\/4/CD
%/NN
one/CD
month/NN
;/:
8/CD
11\/16/CD
%/NN
three/CD
months/NNS
;/:
8/CD
9\/16/CD
%/NN
six/CD
months/NNS
;/:
8/CD
9\/16/CD
%/NN
one/CD
year/NN
./.
The/DT
average/NN
of/IN
interbank/NN
offered/VBN
rates/NNS
for/IN
dollar/NN
deposits/NNS
in/IN
the/DT
London/JJ
market/NN
based/VBN
on/IN
quotations/NNS
at/IN
five/CD
major/JJ
banks/NNS
./.
FOREIGN/NNP
PRIME/NNP
RATES/NNPS
:/:
Canada/NNP
13.50/CD
%/NN
;/:
Germany/NNP
8.50/CD
%/NN
;/:
Japan/NNP
4.875/CD
%/NN
;/:
Switzerland/NNP
8.50/CD
%/NN
;/:
Britain/NNP
15/CD
%/NN
./.
These/DT
rate/NN
indications/NNS
are/VBP
n't/RB
directly/RB
comparable/JJ
;/:
lending/VBG
practices/NNS
vary/VBP
widely/RB
by/IN
location/NN
./.
TREASURY/NNP
BILLS/NNPS
:/:
Results/NNS
of/IN
the/DT
Monday/NNP
,/,
October/NNP
16/CD
,/,
1989/CD
,/,
auction/NN
of/IN
short-term/JJ
U.S./NNP
government/NN
bills/NNS
,/,
sold/VBN
at/IN
a/DT
discount/NN
from/IN
face/NN
value/NN
in/IN
units/NNS
of/IN
$/$
10,000/CD
to/TO
$/$
1/CD
million/CD
:/:
7.37/CD
%/NN
13/CD
weeks/NNS
;/:
7.42/CD
%/NN
26/CD
weeks/NNS
./.
FEDERAL/NNP
HOME/NNP
LOAN/NNP
MORTGAGE/NNP
CORP/NNP
./.
Freddie/NNP
Mac/NNP
yields/NNS
on/IN
30-year/JJ
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
./.
9.87/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
7.875/CD
%/NN
,/,
2/CD
%/NN
rate/NN
capped/VBN
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNPS
Inc/NNP
./.
FEDERAL/NNP
NATIONAL/NNP
MORTGAGE/NNP
ASSOCIATION/NNP
Fannie/NNP
Mae/NNP
yields/NNS
on/IN
30/CD
year/NN
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
par/NN
9.81/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
8.70/CD
%/NN
,/,
6\/2/CD
rate/NN
capped/VBN
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNPS
Inc/NNP
./.
MERRILL/NNP
LYNCH/NNP
READY/NNP
ASSETS/NNPS
TRUST/NNP
:/:
8.50/CD
%/NN
./.
Annualized/VBN
average/JJ
rate/NN
of/IN
return/NN
after/IN
expenses/NNS
for/IN
the/DT
past/JJ
30/CD
days/NNS
;/:
not/RB
a/DT
forecast/NN
of/IN
future/JJ
returns/NNS
./.
China/NNP
said/VBD
the/DT
question/NN
of/IN
Taiwan/NNP
's/POS
membership/NN
in/IN
the/DT
General/NNP
Agreement/NNP
on/IN
Tariffs/NNPS
and/CC
Trade/NNP
should/MD
be/VB
considered/VBN
only/RB
after/IN
China/NNP
's/POS
own/JJ
membership/NN
in/IN
the/DT
97-nation/JJ
organization/NN
is/VBZ
restored/VBN
./.
Both/DT
China/NNP
and/CC
Taiwan/NNP
are/VBP
seeking/VBG
seats/NNS
in/IN
GATT/NNP
,/,
which/WDT
sponsors/VBZ
trade-liberalizing/JJ
agreements/NNS
and/CC
sets/VBZ
world-commerce/JJ
rules/NNS
./.
``/``
As/IN
one/CD
of/IN
China/NNP
's/POS
provinces/NNS
,/,
Taiwan/NNP
has/VBZ
no/DT
right/NN
to/TO
join/VB
GATT/NNP
on/IN
its/PRP$
own/JJ
,/,
''/''
Foreign/NNP
Ministry/NNP
spokesman/NN
Li/NNP
Zhaoxing/NNP
said/VBD
./.
China/NNP
,/,
under/IN
the/DT
Nationalist/JJ
government/NN
of/IN
Chiang/NNP
Kai-shek/NNP
,/,
was/VBD
a/DT
founding/VBG
member/NN
of/IN
GATT/NNP
in/IN
1947/CD
./.
The/DT
Nationalists/NNPS
withdrew/VBD
in/IN
1950/CD
,/,
after/IN
their/PRP$
flight/NN
to/TO
Taiwan/NNP
,/,
and/CC
the/DT
Communist/JJ
government/NN
in/IN
Beijing/NNP
applied/VBD
for/IN
restoration/NN
of/IN
China/NNP
's/POS
membership/NN
in/IN
July/NNP
1986/CD
./.
The/DT
U.S./NNP
has/VBZ
voiced/VBN
opposition/NN
to/TO
China/NNP
's/POS
bid/NN
for/IN
GATT/NNP
membership/NN
,/,
saying/VBG
China/NNP
has/VBZ
yet/RB
to/TO
undertake/VB
needed/VBN
economic/JJ
reforms/NNS
./.
Japan/NNP
's/POS
biggest/JJS
women/NNS
's/POS
underwear/NN
maker/NN
,/,
Wacoal/NNP
Corp./NNP
,/,
said/VBD
that/IN
it/PRP
developed/VBD
a/DT
sports/NNS
car/NN
that/IN
it/PRP
plans/VBZ
to/TO
market/VB
in/IN
two/CD
years/NNS
./.
The/DT
``/``
Jiotto/NNP
Caspita/NNP
''/''
can/MD
run/VB
at/IN
over/IN
188/CD
miles/NNS
an/DT
hour/NN
,/,
a/DT
company/NN
spokesman/NN
said/VBD
./.
The/DT
base/NN
price/NN
of/IN
the/DT
car/NN
is/VBZ
estimated/VBN
at/IN
30/CD
million/CD
yen/NN
$/$
213,000/CD
Wacoal/NNP
said/VBD
it/PRP
intends/VBZ
to/TO
produce/VB
the/DT
cars/NNS
through/IN
a/DT
car/NN
manufacturer/NN
./.
Along/IN
with/IN
the/DT
car/NN
,/,
Wacoal/NNP
plans/VBZ
to/TO
launch/VB
a/DT
series/NN
of/IN
Caspita-brand/JJ
men/NNS
's/POS
underwear/NN
./.
``/``
Our/PRP$
image/NN
is/VBZ
a/DT
company/NN
that/WDT
makes/VBZ
women/NNS
's/POS
products/NNS
,/,
''/''
said/VBD
a/DT
Wacoal/NNP
spokesman/NN
./.
``/``
Now/RB
,/,
we/PRP
're/VBP
going/VBG
to/TO
sell/VB
to/TO
men/NNS
./.
''/''
The/DT
British/JJ
satirical/JJ
magazine/NN
Private/NNP
Eye/NNP
won/VBD
an/DT
appeal/NN
against/IN
the/DT
size/NN
of/IN
a/DT
$/$
960,000/CD
libel/NN
award/NN
to/TO
Sonia/NNP
Sutcliffe/NNP
,/,
the/DT
estranged/VBN
wife/NN
of/IN
the/DT
``/``
Yorkshire/NNP
Ripper/NNP
''/''
mass/NN
murderer/NN
./.
An/DT
appeals-court/NN
panel/NN
slashed/VBD
all/DT
but/CC
$/$
40,000/CD
from/IN
the/DT
award/NN
,/,
the/DT
largest/JJS
ever/RB
set/VBN
by/IN
a/DT
British/JJ
jury/NN
,/,
pending/VBG
a/DT
reassessment/NN
of/IN
the/DT
damages/NNS
./.
But/CC
the/DT
panel/NN
dismissed/VBD
the/DT
magazine/NN
's/POS
contention/NN
that/IN
it/PRP
had/VBD
n't/RB
libeled/VBN
Mrs./NNP
Sutcliffe/NNP
when/WRB
it/PRP
accused/VBD
her/PRP
of/IN
trying/VBG
to/TO
sell/VB
her/PRP$
story/NN
to/TO
capitalize/VB
on/IN
the/DT
notoriety/NN
of/IN
her/PRP$
husband/NN
./.
Private/NNP
Eye/NNP
had/VBD
been/VBN
threatened/VBN
with/IN
closure/NN
because/IN
it/PRP
could/MD
n't/RB
afford/VB
the/DT
libel/NN
payment/NN
./.
Senshukai/NNP
Co./NNP
,/,
a/DT
travel/NN
agent/NN
based/VBN
in/IN
Osaka/NNP
,/,
Japan/NNP
,/,
announced/VBD
that/IN
it/PRP
and/CC
Nissho/NNP
Iwai/NNP
Corp./NNP
,/,
a/DT
major/JJ
Japanese/JJ
trading/NN
house/NN
,/,
will/MD
jointly/RB
build/VB
a/DT
130-unit/JJ
condominium/NN
in/IN
Queensland/NNP
,/,
Australia/NNP
./.
Senshukai/NNP
said/VBD
the/DT
partners/NNS
plan/VBP
to/TO
rent/VB
to/TO
tourists/NNS
but/CC
will/MD
also/RB
sell/VB
to/TO
interested/JJ
parties/NNS
./.
Senshukai/NNP
has/VBZ
a/DT
60/CD
%/NN
stake/NN
in/IN
the/DT
venture/NN
and/CC
Nissho/NNP
Iwai/NNP
has/VBZ
the/DT
rest/NN
./.
Construction/NN
of/IN
the/DT
34-floor/JJ
building/NN
will/MD
begin/VB
next/JJ
May/NNP
and/CC
should/MD
be/VB
completed/VBN
in/IN
April/NNP
1992/CD
./.
Units/NNS
will/MD
cost/VB
from/IN
500,000/CD
to/TO
3.5/CD
million/CD
Australian/JJ
dollars/NNS
US$/$
386,000/CD
to/TO
US$/$
2.7/CD
million/CD
The/DT
Soviet/NNP
Union/NNP
has/VBZ
halted/VBN
construction/NN
of/IN
two/CD
Chernobyl-type/JJ
nuclear/JJ
reactors/NNS
and/CC
is/VBZ
reassessing/VBG
the/DT
future/NN
of/IN
12/CD
other/JJ
existing/VBG
reactors/NNS
./.
Viktor/NNP
Sidorenko/NNP
,/,
vice/NN
chairman/NN
of/IN
the/DT
State/NNP
Committee/NNP
on/IN
Nuclear/NNP
Safety/NNP
,/,
said/VBD
the/DT
two/CD
reactors/NNS
were/VBD
at/IN
Kursk/NNP
and/CC
Smolensk/NNP
./.
News/NNS
of/IN
the/DT
halt/NN
comes/VBZ
amid/IN
growing/VBG
anger/NN
in/IN
the/DT
Ukraine/NNP
and/CC
Byelorussia/NNP
over/IN
continuing/VBG
high/JJ
levels/NNS
of/IN
radiation/NN
from/IN
Chernobyl/NNP
./.
A/DT
former/JJ
vice/NN
president/NN
of/IN
the/DT
Singapore/NNP
branch/NN
of/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Group/NNP
Inc./NNP
was/VBD
charged/VBN
in/IN
court/NN
yesterday/NN
on/IN
19/CD
counts/NNS
of/IN
cheating/NN
./.
Francis/NNP
Dang/NNP
,/,
41/CD
,/,
is/VBZ
alleged/VBN
to/TO
have/VB
been/VBN
involved/VBN
in/IN
cheating/VBG
Drexel/NNP
Burnham/NNP
Lambert/NNP
of/IN
up/IN
to/TO
2.1/CD
million/CD
Singapore/NNP
dollars/NNS
US$/$
1.1/CD
million/CD
unauthorized/JJ
transactions/NNS
on/IN
the/DT
London/NNP
Commodities/NNPS
Exchange/NNP
and/CC
the/DT
International/NNP
Petroleum/NNP
Exchange/NNP
./.
Mr./NNP
Dang/NNP
is/VBZ
alleged/VBN
to/TO
have/VB
used/VBN
the/DT
account/NN
of/IN
Singapore/NNP
hotel/NN
and/CC
property/NN
magnate/NN
Ong/NNP
Beng/NNP
Seng/NNP
to/TO
effect/VB
the/DT
transactions/NNS
./.
Japan/NNP
says/VBZ
its/PRP$
economic/JJ
growth/NN
will/MD
fall/VB
sharply/RB
if/IN
it/PRP
cuts/VBZ
back/RB
on/IN
the/DT
use/NN
of/IN
oil/NN
,/,
coal/NN
and/CC
gas/NN
to/TO
cap/VB
emissions/NNS
of/IN
carbon/NN
dioxide/NN
./.
A/DT
Ministry/NNP
of/IN
International/NNP
Trade/NNP
and/CC
Industry/NNP
official/NN
said/VBD
that/IN
a/DT
study/NN
found/VBD
that/IN
Japan/NNP
's/POS
annual/JJ
economic/JJ
growth/NN
rate/NN
would/MD
eventually/RB
be/VB
only/RB
0.8/CD
%/NN
if/IN
carbon-dioxide/NN
emissions/NNS
remained/VBD
at/IN
this/DT
year/NN
's/POS
level/NN
of/IN
300/CD
million/CD
tons/NNS
./.
The/DT
study/NN
will/MD
support/VB
arguments/NNS
against/IN
capping/VBG
carbon-dioxide/NN
emissions/NNS
that/IN
Japan/NNP
will/MD
make/VB
at/IN
a/DT
U.N.-backed/JJ
conference/NN
on/IN
atmospheric/JJ
pollution/NN
next/IN
month/NN
./.
The/DT
study/NN
said/VBD
Japan/NNP
's/POS
carbon-dioxide/NN
emissions/NNS
would/MD
slightly/RB
more/RBR
than/IN
double/JJ
by/IN
2010/CD
unless/IN
the/DT
nation/NN
reduced/VBD
its/PRP$
dependence/NN
on/IN
fossil/JJ
fuels/NNS
./.
It/PRP
said/VBD
that/IN
expanding/VBG
nuclear-power/JJ
capability/NN
is/VBZ
the/DT
quickest/JJS
way/NN
to/TO
lessen/VB
that/DT
dependence/NN
./.
But/CC
increased/VBN
reliance/NN
on/IN
nuclear/JJ
power/NN
would/MD
meet/VB
stiff/JJ
opposition/NN
from/IN
environmentalists/NNS
,/,
a/DT
second/JJ
ministry/NN
official/NN
said/VBD
./.
Just/RB
in/IN
time/NN
for/IN
Halloween/NNP
,/,
Britain/NNP
's/POS
Oxford/NNP
University/NNP
Press/NNP
is/VBZ
publishing/VBG
a/DT
``/``
Dictionary/NNP
of/IN
Superstitions/NNPS
./.
''/''
The/DT
books/NN|POS
1,500/CD

entries/NNS
include/VBP
stepping/VBG
on/IN
cracks/NNS
and/CC
knocking/VBG
on/IN
wood/NN
.../:
./.
In/IN
New/NNP
Zealand/NNP
's/POS
tiny/JJ
township/NN
of/IN
Kaitaia/NNP
,/,
which/WDT
has/VBZ
had/VBN
direct/JJ
dialing/NN
for/IN
less/JJR
than/IN
a/DT
year/NN
,/,
about/IN
30/CD
angry/JJ
phone-company/NN
customers/NNS
questioned/VBD
the/DT
size/NN
of/IN
their/PRP$
bills/NNS
./.
It/PRP
turned/VBD
out/IN
their/PRP$
children/NNS
had/VBD
been/VBN
dialing/VBG
a/DT
``/``
sex/NN
fantasy/NN
''/''
service/NN
in/IN
the/DT
U.S/NNP
./.
Slowing/VBG
sales/NNS
of/IN
its/PRP$
profitable/JJ
Jeep/NNP
Cherokee/NNP
and/CC
Wagoneer/NNP
sport/NN
utility/NN
vehicles/NNS
are/VBP
forcing/VBG
Chrysler/NNP
Corp./NNP
to/TO
temporarily/RB
idle/VB
its/PRP$
Toledo/NNP
,/,
Ohio/NNP
,/,
assembly/NN
plant/NN
for/IN
the/DT
first/JJ
time/NN
since/IN
April/NNP
1986/CD
./.
About/IN
5,500/CD
hourly/JJ
workers/NNS
will/MD
be/VB
laid/VBN
off/IN
for/IN
a/DT
week/NN
beginning/NN
Oct./NNP
23/CD
,/,
and/CC
overtime/RB
has/VBZ
been/VBN
eliminated/VBN
at/IN
the/DT
plant/NN
for/IN
the/DT
fourth/JJ
quarter/NN
,/,
a/DT
Chrysler/NNP
spokesman/NN
said/VBD
./.
That/DT
's/VBZ
a/DT
significant/JJ
change/NN
from/IN
earlier/RBR
this/DT
year/NN
when/WRB
the/DT
plant/NN
worked/VBD
substantial/JJ
overtime/NN
only/RB
to/TO
have/VB
sales/NNS
fall/VB
short/RB
of/IN
the/DT
company/NN
's/POS
bullish/JJ
expectations/NNS
./.
Sales/NNS
of/IN
Cherokee/NNP
,/,
the/DT
best-selling/JJ
Jeep/NN
,/,
and/CC
the/DT
lower-volume/JJ
Wagoneer/NN
were/VBD
actually/RB
up/IN
about/IN
10/CD
%/NN
through/IN
the/DT
end/NN
of/IN
last/JJ
month/NN
./.
But/CC
that/DT
's/VBZ
less/JJR
than/IN
Chrysler/NNP
officials/NNS
had/VBD
hoped/VBN
when/WRB
they/PRP
set/VBP
ambitious/JJ
production/NN
schedules/NNS
for/IN
the/DT
Toledo/NNP
plant/NN
earlier/RBR
this/DT
year/NN
./.
Even/RB
when/WRB
it/PRP
became/VBD
clear/JJ
this/DT
spring/NN
that/DT
demand/NN
was/VBD
n't/RB
coming/VBG
up/IN
to/TO
expectations/NNS
,/,
Chrysler/NNP
officials/NNS
``/``
resisted/VBD
''/''
cutting/VBG
output/NN
because/IN
Cherokee/NNP
and/CC
Wagoneer/NNP
are/VBP
``/``
very/RB
profitable/JJ
vehicles/NNS
,/,
''/''
the/DT
spokesman/NN
said/VBD
./.
Instead/RB
,/,
Chrysler/NNP
officials/NNS
in/IN
late/JJ
May/NNP
slapped/VBD
$/$
1,000/CD
cash/NN
rebates/NNS
on/IN
the/DT
vehicles/NNS
,/,
including/VBG
the/DT
first/JJ
such/JJ
incentives/NNS
on/IN
the/DT
popular/JJ
four-door/JJ
Cherokee/NNP
since/IN
Chrysler/NNP
bought/VBD
Jeep/NN
in/IN
1987/CD
./.
The/DT
incentives/NNS
boosted/VBD
sales/NNS
for/IN
a/DT
while/NN
,/,
but/CC
the/DT
pace/NN
had/VBD
cooled/VBN
by/IN
last/JJ
month/NN
./.
The/DT
result/NN
:/:
Chrysler/NNP
dealers/NNS
had/VBD
a/DT
bloated/JJ
82-day/JJ
supply/NN
of/IN
the/DT
Cherokee/NNP
as/IN
of/IN
the/DT
end/NN
of/IN
last/JJ
month/NN
and/CC
a/DT
161-day/JJ
supply/NN
of/IN
the/DT
Comanche/NNP
pickup/NN
,/,
which/WDT
Toledo/NNP
also/RB
builds/VBZ
./.
A/DT
60-day/JJ
to/TO
65-day/JJ
supply/NN
is/VBZ
considered/VBN
normal/JJ
./.
At/IN
Jasper/NNP
Jeep-Eagle/NNP
,/,
one/CD
of/IN
the/DT
largest/JJS
Jeep/NN
dealerships/NNS
in/IN
the/DT
country/NN
,/,
inventories/NNS
have/VBP
continued/VBN
to/TO
swell/VB
./.
Steve/NNP
Lowe/NNP
,/,
general/JJ
manager/NN
of/IN
Jasper/NNP
,/,
Ga./NNP
,/,
dealership/NN
,/,
said/VBD
new/JJ
rebates/NNS
of/IN
$/$
500/CD
to/TO
$/$
1,000/CD
on/IN
the/DT
models/NNS
have/VBP
stimulated/VBN
sales/NNS
,/,
but/CC
not/RB
enough/RB
to/TO
significantly/RB
cut/VB
dealer/NN
stocks/NNS
./.
``/``
If/IN
people/NNS
are/VBP
n't/RB
buying/VBG
,/,
you/PRP
have/VBP
to/TO
close/VB
plants/NNS
,/,
''/''
he/PRP
said/VBD
./.
Separately/RB
,/,
Chrysler/NNP
said/VBD
it/PRP
will/MD
idle/VB
for/IN
four/CD
weeks/NNS
the/DT
St./NNP
Louis/NNP
assembly/NN
plant/NN
that/WDT
builds/VBZ
the/DT
Chrysler/NNP
LeBaron/NNP
and/CC
Dodge/NNP
Daytona/NNP
models/NNS
./.
Chrysler/NNP
officials/NNS
said/VBD
the/DT
plant/NN
is/VBZ
scheduled/VBN
to/TO
resume/VB
production/NN
on/IN
Nov./NNP
20./CD
,/,
and/CC
3,300/CD
hourly/JJ
workers/NNS
will/MD
be/VB
affected/VBN
./.
General/NNP
Motors/NNPS
Corp./NNP
,/,
meanwhile/RB
,/,
said/VBD
it/PRP
will/MD
idle/VB
for/IN
yet/RB
another/DT
week/NN
its/PRP$
Linden/NNP
,/,
N.J./NNP
,/,
assembly/NN
plant/NN
,/,
bringing/VBG
to/TO
three/CD
weeks/NNS
the/DT
total/JJ
time/NN
that/DT
plant/NN
will/MD
be/VB
idled/VBN
during/IN
October/NNP
./.
GM/NNP
said/VBD
the/DT
assembly/NN
plant/NN
,/,
which/WDT
builds/VBZ
the/DT
Chevrolet/NNP
Corsica/NNP
and/CC
Beretta/NNP
compact/JJ
cars/NNS
,/,
originally/RB
was/VBD
scheduled/VBN
to/TO
reopen/VB
Monday/NNP
but/CC
now/RB
will/MD
not/RB
resume/VB
production/NN
until/IN
Oct./NNP
30/CD
./.
The/DT
shutdown/NN
affects/VBZ
3,000/CD
workers/NNS
and/CC
will/MD
cut/VB
output/NN
by/IN
about/IN
4,320/CD
cars/NNS
./.
Sluggish/JJ
sales/NNS
of/IN
the/DT
Beretta/NNP
and/CC
Corsica/NNP
spurred/VBD
GM/NNP
to/TO
offer/VB
$/$
800/CD
rebates/NNS
on/IN
those/DT
cars/NNS
./.
The/DT
Corsica/NNP
and/CC
Beretta/NNP
make/VB
up/IN
the/DT
highest-volume/JJ
car/NN
line/NN
at/IN
Chevrolet/NNP
,/,
but/CC
sales/NNS
of/IN
the/DT
cars/NNS
are/VBP
off/IN
9.6/CD
%/NN
for/IN
the/DT
year/NN
,/,
and/CC
fell/VBD
a/DT
steep/JJ
34.2/CD
%/NN
early/RB
this/DT
month/NN
./.
GM/NNP
has/VBZ
scheduled/VBN
overtime/RB
at/IN
its/PRP$
Lordstown/NNP
,/,
Ohio/NNP
,/,
and/CC
Janesville/NNP
,/,
Wis./NNP
,/,
assembly/NN
plants/NNS
,/,
which/WDT
build/VBP
the/DT
Chevrolet/NNP
Cavalier/NNP
./.
Ford/NNP
Motor/NNP
Co./NNP
said/VBD
it/PRP
will/MD
shut/VB
down/IN
for/IN
one/CD
week/NN
its/PRP$
Kentucky/NNP
Truck/NNP
Plant/NNP
because/IN
of/IN
a/DT
``/``
shortage/NN
of/IN
dealer/NN
orders/NNS
./.
''/''
The/DT
shutdown/NN
will/MD
idle/VB
2,000/CD
hourly/JJ
employees/NNS
and/CC
eliminate/VB
production/NN
of/IN
about/IN
1,300/CD
medium/NN
and/CC
heavy/JJ
duty/NN
trucks/NNS
./.
The/DT
assembly/NN
plant/NN
is/VBZ
scheduled/VBN
to/TO
resume/VB
production/NN
on/IN
Oct./NNP
30/CD
./.
Meanwhile/RB
,/,
the/DT
nine/CD
major/JJ
U.S./NNP
auto/NN
makers/NNS
plan/VBP
to/TO
build/VB
143,178/CD
cars/NNS
this/DT
week/NN
,/,
down/IN
11.7/CD
%/NN
from/IN
162,190/CD
a/DT
year/NN
ago/IN
and/CC
flat/RB
with/IN
last/JJ
week/NN
's/POS
142,117/CD
car/NN
output/NN
./.
f/SYM
-/:
Includes/VBZ
Chevrolet/NNP
Prizm/NNP
and/CC
Toyota/NNP
Corolla/NNP
./.
r/SYM
-/:
Revised/VBN
./.
x/SYM
-/:
Year-to-date/JJ
1988/CD
figure/NN
includes/VBZ
Volkswagen/NNP
domestic-production/NN
through/IN
July/NNP
./.
LOTUS/NNP
DEVELOPMENT/NNP
Corp./NNP
's/POS
net/JJ
income/NN
rose/VBD
61/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
from/IN
the/DT
year-earlier/JJ
period/NN
./.
Yesterday/NN
's/POS
edition/NN
misstated/VBD
the/DT
percentage/NN
increase/NN
./.
Technology/NN
:/:
Lotus/NNP
Development/NNP
Posts/VBZ
Surge/NNP
of/IN
51/CD
%/NN
in/IN
3rd-Quarter/NNP
Profit/NNP
''/''
--/:
WSJ/NNP
Oct./NNP
19/CD
,/,
1989/CD
)/)
First/NNP
Fidelity/NNP
Bancorp./NNP
,/,
Lawrenceville/NNP
,/,
N.J./NNP
,/,
reported/VBD
a/DT
24/CD
%/NN
drop/NN
in/IN
third-quarter/JJ
profit/NN
,/,
because/IN
of/IN
a/DT
decline/NN
in/IN
earning/VBG
assets/NNS
,/,
lower/JJR
loan/NN
volume/NN
and/CC
tighter/JJR
interest/NN
margins/NNS
./.
The/DT
bank/NN
holding/VBG
company/NN
posted/VBD
net/JJ
income/NN
of/IN
$/$
54.4/CD
million/CD
,/,
or/CC
87/CD
cents/NNS
a/DT
share/NN
,/,
including/VBG
$/$
1.7/CD
million/CD
,/,
or/CC
three/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
one-time/JJ
tax/NN
benefits/NNS
./.
A/DT
year/NN
earlier/RBR
,/,
net/NN
was/VBD
$/$
71.6/CD
million/CD
,/,
or/CC
$/$
1.22/CD
a/DT
share/NN
./.
First/NNP
Fidelity/NNP
said/VBD
non-performing/JJ
assets/NNS
increased/VBD
to/TO
$/$
482.3/CD
million/CD
Sept./NNP
30/CD
from/IN
$/$
393.1/CD
million/CD
June/NNP
30/CD
./.
The/DT
rise/NN
resulted/VBD
from/IN
the/DT
transfer/NN
to/TO
non-accrual/JJ
status/NN
of/IN
$/$
96/CD
million/CD
``/``
owed/VBN
by/IN
two/CD
national/JJ
borrowers/NNS
and/CC
one/CD
local/JJ
commercial/JJ
real-estate/NN
customer/NN
,/,
''/''
First/NNP
Fidelity/NNP
said/VBD
./.
It/PRP
said/VBD
it/PRP
does/VBZ
n't/RB
anticipate/VB
any/DT
loss/NN
of/IN
principal/NN
on/IN
two/CD
of/IN
the/DT
loans/NNS
,/,
comprising/VBG
$/$
85/CD
million/CD
of/IN
these/DT
credits/NNS
./.
First/NNP
Fidelity/NNP
said/VBD
it/PRP
boosted/VBD
its/PRP$
loan-loss/NN
provision/NN
to/TO
$/$
50.9/CD
million/CD
from/IN
$/$
20.4/CD
million/CD
a/DT
year/NN
ago/IN
,/,
primarily/RB
because/IN
of/IN
a/DT
weaker/JJR
real-estate/JJ
sector/NN
in/IN
the/DT
region/NN
./.
VIACOM/NNP
Inc./NNP
's/POS
loss/NN
narrowed/VBN
to/TO
$/$
21.7/CD
million/CD
in/IN
the/DT
third/JJ
quarter/NN
from/IN
$/$
56.9/CD
million/CD
a/DT
year/NN
ago/IN
./.
Thursday/NNP
's/POS
edition/NN
misstated/VBD
the/DT
narrowing/NN
./.
Marketing/NNP
Brief/NNP
--/:
Viacom/NNP
Inc./NNP
:/:
Third-Period/JJ
Loss/NN
Widened/VBD
;/:
Interest/NN
Expense/NN
Is/VBZ
Cited/VBN
''/''
--/:
WSJ/NNP
Oct./NNP
19/CD
,/,
1989/CD
)/)
Coastal/NNP
Corp./NNP
said/VBD
it/PRP
signed/VBD
a/DT
definitive/JJ
agreement/NN
with/IN
Aruba/NNP
to/TO
restart/VB
a/DT
150,000-barrel-a-day/JJ
oil/NN
refinery/NN
./.
Coastal/NNP
would/MD
n't/RB
disclose/VB
the/DT
terms/NNS
./.
Coastal/NNP
,/,
a/DT
Houston/NNP
oil/NN
and/CC
gas/NN
company/NN
,/,
said/VBD
it/PRP
expects/VBZ
to/TO
begin/VB
operations/NNS
in/IN
October/NNP
1990/CD
./.
The/DT
company/NN
said/VBD
it/PRP
may/MD
install/VB
additional/JJ
processing/VBG
units/NNS
at/IN
the/DT
refinery/NN
to/TO
produce/VB
higher/JJR
octane/NN
gasolines/NNS
and/CC
other/JJ
products/NNS
./.
The/DT
company/NN
said/VBD
it/PRP
was/VBD
leasing/VBG
the/DT
site/NN
of/IN
the/DT
refinery/NN
from/IN
Aruba/NNP
./.
Exxon/NNP
Corp./NNP
built/VBD
the/DT
plant/NN
but/CC
closed/VBD
it/PRP
in/IN
1985/CD
and/CC
sold/VBD
off/IN
much/RB
of/IN
the/DT
equipment/NN
to/TO
dismantling/VBG
contractors/NNS
,/,
from/IN
whom/WP
Coastal/NNP
bought/VBD
back/RB
much/JJ
of/IN
the/DT
equipment/NN
./.
A/DT
Coastal/NNP
spokesman/NN
said/VBD
the/DT
biggest/JJS
expense/NN
will/MD
be/VB
to/TO
refurbish/VB
the/DT
refinery/NN
but/CC
would/MD
n't/RB
say/VB
how/WRB
much/RB
that/IN
would/MD
be/VB
./.
The/DT
prime/JJ
minister/NN
of/IN
Aruba/NNP
has/VBZ
said/VBN
it/PRP
could/MD
cost/VB
around/IN
$/$
100/CD
million/CD
./.
Coastal/NNP
said/VBD
the/DT
refinery/NN
's/POS
expected/VBN
daily/JJ
production/NN
will/MD
include/VB
34,000/CD
barrels/NNS
of/IN
jet/NN
fuel/NN
,/,
32,000/CD
barrels/NNS
of/IN
low-sulfur/JJ
diesel/NN
fuel/NN
,/,
30,000/CD
barrels/NNS
of/IN
naphtha/NN
,/,
17,000/CD
barrels/NNS
of/IN
residual/JJ
fuel/NN
oil/NN
,/,
8,000/CD
barrels/NNS
of/IN
asphalt/NN
and/CC
25,000/CD
barrels/NNS
of/IN
low-sulfur/JJ
catalytic/JJ
cracker/NN
feedstock/NN
./.
Loral/NNP
Corp./NNP
said/VBD
fiscal/JJ
second-quarter/NN
net/NN
income/NN
was/VBD
$/$
19.8/CD
million/CD
,/,
or/CC
79/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
year-earlier/JJ
earnings/NNS
from/IN
continuing/VBG
operations/NNS
of/IN
$/$
15.6/CD
million/CD
,/,
or/CC
62/CD
cents/NNS
a/DT
share/NN
./.
Year-earlier/JJ
net/NN
of/IN
$/$
21/CD
million/CD
,/,
or/CC
84/CD
cents/NNS
a/DT
share/NN
,/,
included/VBD
the/DT
results/NNS
of/IN
Loral/NNP
's/POS
former/JJ
Aircraft/NNP
Braking/NNP
Systems/NNPS
and/CC
Engineered/NNP
Fabrics/NNP
divisions/NNS
,/,
which/WDT
were/VBD
sold/VBN
April/NNP
27/CD
to/TO
the/DT
company/NN
's/POS
chairman/NN
,/,
Bernard/NNP
L./NNP
Schwartz/NNP
./.
The/DT
defense/NN
electronics/NNS
concern/NN
attributed/VBD
the/DT
operating/VBG
improvement/NN
to/TO
higher/JJR
profit/NN
margins/NNS
and/CC
lower/JJR
net/JJ
interest/NN
expense/NN
./.
Loral/NNP
also/RB
reported/VBD
that/IN
its/PRP$
bookings/NNS
more/JJR
than/IN
doubled/VBN
to/TO
$/$
654/CD
million/CD
in/IN
the/DT
quarter/NN
,/,
ended/VBD
Sept./NNP
30/CD
,/,
from/IN
$/$
257/CD
million/CD
,/,
in/IN
the/DT
year-before/JJ
period/NN
./.
The/DT
increase/NN
was/VBD
due/JJ
mainly/RB
to/TO
a/DT
$/$
325/CD
million/CD
order/NN
from/IN
Turkey/NNP
to/TO
equip/VB
its/PRP$
fleet/NN
of/IN
F-16/CD
fighters/NNS
with/IN
Loral/NNP
's/POS
ALQ-178/NNP
Rapport/NNP
III/NNP
electronic/JJ
countermeasures/NNS
system/NN
./.
The/DT
order/NN
is/VBZ
the/DT
biggest/JJS
in/IN
the/DT
company/NN
's/POS
history/NN
./.
Sales/NNS
in/IN
the/DT
latest/JJS
period/NN
edged/VBD
up/IN
to/TO
$/$
295.7/CD
million/CD
from/IN
$/$
293.9/CD
million/CD
./.
Mr./NNP
Schwartz/NNP
said/VBD
the/DT
recent/JJ
increase/NN
in/IN
orders/NNS
``/``
puts/VBZ
us/PRP
well/RB
on/IN
the/DT
way/NN
to/TO
our/PRP$
goal/NN
of/IN
$/$
1.6/CD
billion/CD
in/IN
bookings/NNS
for/IN
the/DT
year/NN
./.
''/''
He/PRP
added/VBD
:/:
``/``
I/PRP
expect/VBP
to/TO
see/VB
the/DT
earnings/NNS
momentum/NN
we/PRP
experienced/VBD
this/DT
quarter/NN
continue/VB
for/IN
the/DT
rest/NN
of/IN
the/DT
year/NN
./.
''/''
Loral/NNP
said/VBD
it/PRP
expects/VBZ
sales/NNS
to/TO
accelerate/VB
in/IN
both/PDT
the/DT
third/JJ
and/CC
fourth/JJ
quarters/NNS
of/IN
this/DT
fiscal/JJ
year/NN
./.
Loral/NNP
's/POS
profit/NN
from/IN
continuing/VBG
operations/NNS
for/IN
the/DT
first/JJ
six/CD
months/NNS
of/IN
fiscal/JJ
1990/CD
was/VBD
$/$
36.4/CD
million/CD
,/,
or/CC
$/$
1.44/CD
a/DT
share/NN
,/,
up/IN
31/CD
%/NN
from/IN
$/$
27.8/CD
million/CD
,/,
or/CC
$/$
1.11/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Net/JJ
income/NN
fell/VBD
8.6/CD
%/NN
to/TO
$/$
37.1/CD
million/CD
,/,
or/CC
$/$
1.43/CD
a/DT
share/NN
,/,
from/IN
$/$
40.6/CD
million/CD
,/,
or/CC
$/$
1.56/CD
a/DT
share/NN
./.
Fiscal/JJ
first-half/NN
sales/NNS
slipped/VBD
3.9/CD
%/NN
to/TO
$/$
528.4/CD
million/CD
from/IN
$/$
549.9/CD
million/CD
./.
Bookings/NNS
for/IN
the/DT
first/JJ
half/DT
totaled/VBD
$/$
813/CD
million/CD
,/,
compared/VBN
with/IN
the/DT
$/$
432/CD
million/CD
recorded/VBN
last/JJ
year/NN
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Loral/NNP
closed/VBD
at/IN
$/$
33.25/CD
,/,
down/IN
37.5/CD
cents/NNS
./.
HealthVest/NNP
said/VBD
two/CD
of/IN
its/PRP$
lenders/NNS
have/VBP
given/VBN
it/PRP
notices/NNS
of/IN
default/NN
on/IN
bank/NN
loans/NNS
and/CC
said/VBD
they/PRP
may/MD
take/VB
actions/NNS
to/TO
recover/VB
their/PRP$
loans/NNS
./.
HealthVest/NNP
,/,
an/DT
Austin/NNP
,/,
Texas/NNP
,/,
real/JJ
estate/NN
investment/NN
trust/NN
,/,
said/VBD
that/IN
Chemical/NNP
Bank/NNP
,/,
the/DT
lead/NN
bank/NN
under/IN
its/PRP$
domestic/JJ
bank/NN
agreement/NN
,/,
told/VBD
it/PRP
that/IN
if/IN
$/$
3.3/CD
million/CD
owed/VBD
to/TO
the/DT
bank/NN
group/NN
is/VBZ
n't/RB
paid/VBN
by/IN
today/NN
,/,
the/DT
group/NN
will/MD
call/VB
the/DT
$/$
120/CD
million/CD
that/IN
HealthVest/NNP
has/VBZ
outstanding/JJ
under/IN
the/DT
credit/NN
line/NN
./.
The/DT
bank/NN
group/NN
also/RB
said/VBD
that/IN
it/PRP
wo/MD
n't/RB
make/VB
additional/JJ
advances/NNS
under/IN
the/DT
$/$
150/CD
million/CD
credit/NN
line/NN
./.
HealthVest/NNP
missed/VBD
a/DT
payment/NN
to/TO
the/DT
group/NN
that/WDT
was/VBD
due/JJ
in/IN
late/JJ
September/NNP
./.
In/IN
addition/NN
,/,
HealthVest/NNP
said/VBD
Bank/NNP
of/IN
Tokyo/NNP
Trust/NNP
Co./NNP
also/RB
has/VBZ
notified/VBN
it/PRP
of/IN
a/DT
default/NN
and/CC
said/VBD
it/PRP
might/MD
take/VB
action/NN
to/TO
cure/VB
the/DT
default/NN
./.
HealthVest/NNP
missed/VBD
an/DT
interest/NN
payment/NN
to/TO
Bank/NNP
of/IN
Tokyo/NNP
on/IN
Oct./NNP
1/CD
./.
However/RB
,/,
HealthVest/NNP
said/VBD
the/DT
Tokyo/NNP
bank/NN
indicated/VBD
that/IN
it/PRP
wo/MD
n't/RB
accelerate/VB
HealthVest/NNP
's/POS
$/$
50/CD
million/CD
loan/NN
./.
HealthVest/NNP
is/VBZ
in/IN
a/DT
severe/JJ
liquidity/NN
bind/NN
because/IN
its/PRP$
affiliate/NN
,/,
Healthcare/NNP
International/NNP
Inc./NNP
,/,
has/VBZ
failed/VBN
to/TO
make/VB
about/IN
$/$
10.6/CD
million/CD
in/IN
principal/NN
and/CC
interest/NN
payments/NNS
owed/VBD
since/IN
August/NNP
./.
Healthcare/NNP
operates/VBZ
many/JJ
of/IN
the/DT
health-care/JJ
properties/NNS
that/IN
HealthVest/NNP
owns/VBZ
./.
EMPIRE/NNP
PENCIL/NNP
,/,
later/RB
called/VBN
Empire-Berol/NNP
,/,
developed/VBD
the/DT
plastic/JJ
pencil/NN
in/IN
1973/CD
./.
Yesterday/NN
's/POS
Centennial/NNP
Journal/NNP
misstated/VBD
the/DT
company/NN
's/POS
name/NN
./.
Centennial/NNP
Journal/NNP
:/:
100/CD
Years/NNS
in/IN
Business/NNP
--/:
Be/VB
Sure/JJ
to/TO
Pencil/VB
This/DT
Date/NN
In/IN
,/,
1973/CD
''/''
--/:
WSJ/NNP
Oct./NNP
19/CD
,/,
1989/CD
)/)
Storage/NNP
Technology/NNP
Corp./NNP
had/VBD
net/JJ
income/NN
of/IN
$/$
8.3/CD
million/CD
,/,
or/CC
32/CD
cents/NNS
a/DT
share/NN
,/,
for/IN
its/PRP$
fiscal-third/JJ
quarter/NN
ended/VBD
Sept./NNP
29/CD
,/,
almost/RB
15/CD
times/NNS
the/DT
$/$
557,000/CD
,/,
or/CC
two/CD
cents/NNS
a/DT
share/NN
,/,
it/PRP
posted/VBD
for/IN
the/DT
year-ago/JJ
period/NN
./.
Storage/NNP
,/,
Louisville/NNP
,/,
Colo./NNP
,/,
which/WDT
makes/VBZ
data-storage/JJ
devices/NNS
for/IN
mainframe/NN
computers/NNS
,/,
said/VBD
the/DT
huge/JJ
increase/NN
in/IN
net/NN
reflects/VBZ
``/``
strong/JJ
sales/NNS
''/''
of/IN
its/PRP$
tape/NN
products/NNS
,/,
particularly/RB
the/DT
4400/CD
Automated/NNP
Cartridge/NNP
System/NNP
,/,
which/WDT
holds/VBZ
a/DT
library/NN
of/IN
tape/NN
cartridges/NNS
./.
The/DT
company/NN
said/VBD
it/PRP
recently/RB
sold/VBD
its/PRP$
750th/JJ
cartridge/NN
system/NN
,/,
which/WDT
cost/VBD
$/$
400,000/CD
to/TO
$/$
500,000/CD
each/DT
./.
Quarter/NN
revenue/NN
was/VBD
$/$
232.6/CD
million/CD
,/,
up/IN
12/CD
%/NN
from/IN
$/$
206/CD
million/CD
last/JJ
year/NN
./.
The/DT
stock/NN
market/NN
reacted/VBD
strongly/RB
to/TO
the/DT
news/NN
./.
Storage/NNP
rose/VBD
$/$
1.125/CD
a/DT
share/NN
,/,
to/TO
close/VB
at/IN
$/$
14/CD
,/,
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Storage/NNP
had/VBD
net/NN
of/IN
$/$
25.5/CD
million/CD
,/,
or/CC
98/CD
cents/NNS
a/DT
share/NN
,/,
including/VBG
an/DT
$/$
11.3/CD
million/CD
extraordinary/JJ
gain/NN
for/IN
the/DT
anticipated/VBN
proceeds/NNS
from/IN
liquidating/VBG
an/DT
Irish/JJ
unit/NN
./.
Net/NN
was/VBD
up/IN
69/CD
%/NN
from/IN
$/$
15.1/CD
million/CD
,/,
or/CC
57/CD
cents/NNS
a/DT
share/NN
,/,
last/JJ
year/NN
./.
Revenue/NN
for/IN
the/DT
latest/JJS
period/NN
was/VBD
up/IN
11/CD
%/NN
to/TO
$/$
682.7/CD
million/CD
,/,
from/IN
$/$
614.6/CD
million/CD
./.
A/DT
Canadian/JJ
government/NN
agency/NN
conditionally/RB
approved/VBD
proposed/VBN
exports/NNS
to/TO
the/DT
U.S./NNP
of/IN
natural/JJ
gas/NN
from/IN
big/JJ
,/,
untapped/JJ
fields/NNS
in/IN
the/DT
Mackenzie/NNP
River/NNP
delta/JJ
area/NN
of/IN
the/DT
western/JJ
Canadian/NNP
Arctic/NNP
./.
Three/CD
companies/NNS
,/,
Esso/NNP
Resources/NNPS
Canada/NNP
Ltd./NNP
,/,
Shell/NNP
Canada/NNP
Ltd./NNP
and/CC
Gulf/NNP
Canada/NNP
Resources/NNPS
Ltd./NNP
,/,
applied/VBD
to/TO
the/DT
Canadian/NNP
National/NNP
Energy/NNP
Board/NNP
to/TO
export/VB
9.2/CD
trillion/CD
cubic/JJ
feet/NNS
of/IN
Mackenzie/NNP
delta/NN
natural/JJ
gas/NN
over/IN
20/CD
years/NNS
starting/VBG
in/IN
1996/CD
./.
To/TO
be/VB
economically/RB
feasible/JJ
,/,
the/DT
11/CD
billion/CD
Canadian/JJ
dollar/NN
US$/$
9.37/CD
billion/CD
project/NN
requires/VBZ
almost/RB
a/DT
doubling/NN
of/IN
natural/JJ
gas/NN
export/NN
prices/NNS
./.
It/PRP
also/RB
faces/VBZ
numerous/JJ
other/JJ
hurdles/NNS
including/VBG
an/DT
agreement/NN
on/IN
a/DT
pipeline/NN
route/NN
for/IN
the/DT
gas/NN
./.
The/DT
board/NN
said/VBD
the/DT
export/NN
licenses/NNS
would/MD
be/VB
issued/VBN
on/IN
the/DT
condition/NN
that/IN
Canadian/JJ
interests/NNS
would/MD
also/RB
be/VB
allowed/VBN
to/TO
bid/VB
for/IN
the/DT
Mackenzie/NNP
delta/NN
gas/NN
on/IN
terms/NNS
similar/JJ
to/TO
those/DT
offered/VBN
to/TO
U.S./NNP
customers/NNS
./.
U.S./NNP
buyers/NNS
have/VBP
already/RB
been/VBN
lined/VBN
up/IN
./.
They/PRP
include/VBP
Enron/NNP
Corp./NNP
,/,
Texas/NNP
Eastern/NNP
Corp./NNP
,/,
Pacific/NNP
Interstate/NNP
Transmission/NNP
Co./NNP
and/CC
Tennessee/NNP
Gas/NNP
Pipeline/NNP
Co/NNP
./.
The/DT
project/NN
could/MD
result/VB
in/IN
the/DT
U.S./NNP
taking/VBG
more/RBR
than/IN
10/CD
%/NN
of/IN
its/PRP$
natural/JJ
gas/NN
supplies/NNS
from/IN
Canada/NNP
,/,
up/IN
from/IN
about/IN
5/CD
%/NN
currently/RB
./.
It/PRP
would/MD
bring/VB
13/CD
gas/NN
fields/NNS
into/IN
production/NN
at/IN
a/DT
combined/VBN
rate/NN
of/IN
about/IN
1.2/CD
billion/CD
cubic/JJ
feet/NNS
a/DT
day/NN
./.
The/DT
board/NN
estimated/VBN
that/IN
the/DT
cost/NN
of/IN
building/VBG
a/DT
pipeline/NN
from/IN
the/DT
Mackenzie/NNP
delta/NN
to/TO
Alberta/NNP
would/MD
be/VB
about/IN
C$/$
5.9/CD
million/CD
./.
It/PRP
also/RB
said/VBD
projections/NNS
of/IN
surging/VBG
U.S./NNP
demand/NN
for/IN
natural/JJ
gas/NN
and/CC
price/NN
forecasts/NNS
of/IN
C$/$
5.25/CD
per/IN
thousand/CD
cubic/JJ
feet/NNS
by/IN
2005/CD
would/MD
make/VB
the/DT
project/NN
economically/RB
viable/JJ
./.
Esso/NNP
,/,
a/DT
unit/NN
of/IN
Imperial/NNP
Oil/NNP
Ltd./NNP
which/WDT
is/VBZ
71%-owned/JJ
by/IN
Exxon/NNP
Corp./NNP
,/,
will/MD
be/VB
allowed/VBN
to/TO
export/VB
5.1/CD
trillion/CD
cubic/JJ
feet/NNS
to/TO
the/DT
U.S./NNP
in/IN
the/DT
20-year/JJ
period/NN
./.
Shell/NNP
,/,
a/DT
subsidiary/NN
of/IN
Royal/NNP
Dutch\/Shell/NNP
Group/NNP
,/,
will/MD
be/VB
allowed/VBN
to/TO
export/VB
0.9/CD
trillion/CD
cubic/JJ
feet/NNS
,/,
and/CC
Gulf/NNP
,/,
a/DT
unit/NN
of/IN
Olympia/NNP
&/CC
York/NNP
Developments/NNPS
Ltd./NNP
will/MD
be/VB
allowed/VBN
to/TO
export/VB
3.2/CD
trillion/CD
cubic/JJ
feet/NNS
./.
Combustion/NNP
Engineering/NNP
Inc./NNP
,/,
Stamford/NNP
,/,
Conn./NNP
,/,
said/VBD
it/PRP
sold/VBD
and/CC
agreed/VBD
to/TO
sell/VB
several/JJ
investments/NNS
and/CC
nonstrategic/JJ
businesses/NNS
for/IN
about/IN
$/$
100/CD
million/CD
,/,
which/WDT
will/MD
be/VB
used/VBN
for/IN
reducing/VBG
debt/NN
and/CC
general/JJ
purposes/NNS
./.
The/DT
transactions/NNS
are/VBP
unrelated/JJ
./.
The/DT
company/NN
agreed/VBD
to/TO
sell/VB
its/PRP$
minority/NN
investments/NNS
in/IN
makers/NNS
of/IN
steam-generating/NN
and/CC
related/VBN
equipment/NN
,/,
Stein/NNP
Industrie/NNP
and/CC
Energie/NNP
&/CC
Verfahrenstechnik/NNP
,/,
to/TO
the/DT
major/JJ
shareholder/NN
in/IN
the/DT
companies/NNS
,/,
Dutch-based/JJ
GEC/NNP
Alsthom/NNP
N.V/NNP
./.
Combustion/NNP
Engineering/NNP
,/,
which/WDT
provides/VBZ
engineered/VBN
products/NNS
,/,
systems/NNS
and/CC
services/NNS
for/IN
power/NN
generation/NN
,/,
also/RB
sold/VBD
Illinois/NNP
Minerals/NNPS
Co./NNP
,/,
based/VBN
in/IN
Cairo/NNP
,/,
Ill/NNP
./.
That/DT
unit/NN
of/IN
its/PRP$
Georgia/NNP
Kaolin/NNP
Co./NNP
subsidiary/NN
was/VBD
sold/VBN
to/TO
a/DT
unit/NN
of/IN
Unimin/NNP
Corp/NNP
./.
Assets/NNPS
of/IN
Construction/NNP
Equipment/NNP
International/NNP
,/,
Houston/NNP
,/,
were/VBD
sold/VBN
to/TO
Essex/NNP
Crane/NNP
Inc./NNP
,/,
and/CC
the/DT
assets/NNS
of/IN
Elgin/NNP
Electronics/NNP
,/,
Erie/NNP
,/,
Pa./NNP
,/,
were/VBD
sold/VBN
to/TO
closely/RB
held/VBN
Charter/NNP
Technologies/NNPS
Inc/NNP
./.
Where/WRB
do/VBP
Americans/NNPS
put/VBD
their/PRP$
money/NN
?/.
It/PRP
depends/VBZ
on/IN
when/WRB
you/PRP
look/VBP
./.
In/IN
1900/CD
,/,
for/IN
instance/NN
,/,
less/JJR
than/IN
8/CD
%/NN
of/IN
assets/NNS
went/VBD
into/IN
bank/NN
deposits/NNS
./.
That/DT
rose/VBD
to/TO
nearly/RB
18/CD
%/NN
during/IN
the/DT
Depression/NN
,/,
and/CC
has/VBZ
n't/RB
changed/VBN
much/RB
since/IN
./.
Pension/NN
reserves/NNS
,/,
on/IN
the/DT
other/JJ
hand/NN
,/,
made/VBD
up/IN
a/DT
relatively/RB
small/JJ
part/NN
of/IN
household/NN
assets/NNS
until/IN
the/DT
last/JJ
decade/NN
,/,
when/WRB
they/PRP
skyrocketed/VBD
./.
And/CC
there/EX
has/VBZ
been/VBN
a/DT
drastic/JJ
decline/NN
in/IN
the/DT
importance/NN
of/IN
unincorporated/JJ
business/NN
assets/NNS
--/:
thanks/NNS
to/TO
industry/NN
consolidation/NN
and/CC
a/DT
decline/NN
in/IN
family/NN
farms/NNS
./.
That/DT
's/VBZ
some/DT
of/IN
what/WP
emerges/VBZ
from/IN
the/DT
following/VBG
charts/NNS
,/,
which/WDT
show/VBP
how/WRB
Americans/NNPS
have/VBP
changed/VBN
their/PRP$
investment/NN
patterns/NNS
over/IN
the/DT
past/JJ
90/CD
years/NNS
./.
Some/DT
results/NNS
are/VBP
self-explanatory/JJ
./.
But/CC
other/JJ
figures/NNS
are/VBP
surprising/JJ
./.
Housing/NN
,/,
for/IN
instance/NN
,/,
has/VBZ
remained/VBN
a/DT
fairly/RB
steady/JJ
component/NN
of/IN
household/NN
assets/NNS
over/IN
the/DT
past/JJ
decade/NN
--/:
although/IN
common/JJ
wisdom/NN
would/MD
have/VB
expected/VBN
an/DT
increase/NN
./.
``/``
There/EX
is/VBZ
a/DT
lot/NN
of/IN
attention/NN
paid/VBN
to/TO
housing/NN
as/IN
a/DT
form/NN
of/IN
household/NN
wealth/NN
,/,
''/''
says/VBZ
Edward/NNP
N./NNP
Wolff/NNP
,/,
professor/NN
of/IN
economics/NNS
at/IN
New/NNP
York/NNP
University/NNP
./.
``/``
But/CC
it/PRP
has/VBZ
n't/RB
increased/VBN
much/RB
relative/JJ
to/TO
other/JJ
assets/NNS
./.
It/PRP
suggests/VBZ
that/IN
households/NNS
accumulate/VBP
wealth/NN
across/IN
a/DT
broad/JJ
spectrum/NN
of/IN
assets/NNS
./.
And/CC
housing/NN
though/IN
it/PRP
appears/VBZ
in/IN
the/DT
popular/JJ
mind/NN
as/IN
being/VBG
the/DT
major/JJ
household/NN
asset/NN
,/,
is/VBZ
n't/RB
./.
''/''
In/IN
addition/NN
,/,
investors/NNS
'/POS
desire/NN
to/TO
hold/VB
stocks/NNS
--/:
directly/RB
and/CC
through/IN
mutual/JJ
funds/NNS
--/:
has/VBZ
held/VBN
surprisingly/RB
steady/JJ
;/:
stocks/NNS
'/POS
importance/NN
among/IN
assets/NNS
largely/RB
reflects/VBZ
the/DT
ups/NNS
and/CC
downs/NNS
of/IN
the/DT
stock/NN
market/NN
,/,
and/CC
not/RB
a/DT
shift/NN
in/IN
stock-holding/JJ
preferences/NNS
./.
``/``
Stocks/NNS
have/VBP
not/RB
spread/VBN
to/TO
the/DT
general/JJ
public/NN
,/,
despite/IN
the/DT
fact/NN
that/IN
the/DT
environment/NN
is/VBZ
much/RB
different/JJ
,/,
''/''
concludes/VBZ
Robert/NNP
Avery/NNP
,/,
an/DT
economist/NN
at/IN
Cornell/NNP
University/NNP
./.
``/``
To/TO
me/PRP
it/PRP
says/VBZ
that/IN
despite/IN
all/PDT
the/DT
views/NNS
that/IN
we/PRP
spend/VBP
too/RB
much/RB
of/IN
our/PRP$
wealth/NN
on/IN
paper/NN
assets/NNS
,/,
we/PRP
have/VBP
ways/NNS
of/IN
holding/VBG
wealth/NN
similar/JJ
to/TO
100/CD
years/NNS
ago/IN
./.
''/''
--/:
The/DT
charts/NNS
show/VBP
how/WRB
househld/JJ
assets/NNS
have/VBP
been/VBN
distributed/VBN
over/IN
time/NN
./.
The/DT
main/JJ
components/NNS
of/IN
the/DT
various/JJ
asseet/NN
categories/NNS
:/:
Housing/NN
:/:
Primary/JJ
home/NN
,/,
but/CC
not/RB
the/DT
land/NN
it/PRP
's/VBZ
on/IN
./.
Land/NN
and/CC
Other/JJ
Real/NNP
Estate/NNP
:/:
Land/NNP
on/IN
which/WDT
primary/JJ
home/NN
is/VBZ
built/VBN
,/,
investment/NN
property/NN
./.
Consumer/NNP
Durables/NNPS
:/:
Automobiles/NNS
,/,
appliances/NNS
,/,
furniture/NN
./.
Bank/NNP
Deposits/NNPS
:/:
Currency/NN
,/,
checking-account/JJ
deposits/NNS
,/,
small/JJ
savings/NNS
and/CC
time/NN
deposits/NNS
,/,
certificates/NNS
of/IN
deposits/NNS
,/,
money-market/JJ
fund/NN
shares/NNS
./.
Bonds/NNS
:/:
Excludes/NNS
bond/NN
funds/NNS
./.
Stocks\/Mutual/NNP
Funds/NNPS
:/:
Stocks/NNS
and/CC
mutual/JJ
funds/NNS
other/JJ
than/IN
money-market/JJ
funds/NNS
./.
Unincorporated/NNP
Business/NNP
:/:
Partnerships/NNS
and/CC
sole/JJ
proprietorships/NNS
,/,
professional/JJ
corporations/NNS
./.
Pension/NNP
Reserves/NNPS
:/:
Holdings/NNS
by/IN
pension/NN
funds/NNS
./.
McCaw/NNP
Cellular/NNP
Communications/NNPS
Inc./NNP
said/VBD
it/PRP
sent/VBD
a/DT
letter/NN
to/TO
LIN/NNP
Broadcasting/NNP
Corp./NNP
clarifying/VBG
its/PRP$
revised/VBN
tender/NN
offer/NN
for/IN
LIN/NNP
and/CC
asking/VBG
LIN/NNP
to/TO
conduct/VB
``/``
a/DT
fair/JJ
auction/NN
./.
''/''
The/DT
letter/NN
apparently/RB
came/VBD
in/IN
response/NN
to/TO
a/DT
request/NN
for/IN
clarification/NN
by/IN
LIN/NNP
earlier/RBR
this/DT
week/NN
./.
LIN/NNP
,/,
which/WDT
has/VBZ
agreed/VBN
with/IN
BellSouth/NNP
Corp./NNP
to/TO
merge/VB
their/PRP$
cellular-telephone/JJ
businesses/NNS
,/,
said/VBD
then/RB
that/IN
it/PRP
would/MD
n't/RB
take/VB
a/DT
position/NN
on/IN
McCaw/NNP
's/POS
revised/VBN
tender/NN
offer/NN
./.
Earlier/RBR
this/DT
month/NN
,/,
McCaw/NNP
revised/VBD
its/PRP$
offer/NN
to/TO
$/$
125/CD
a/DT
share/NN
for/IN
22/CD
million/CD
LIN/NNP
shares/NNS
./.
McCaw/NNP
is/VBZ
seeking/VBG
50.3/CD
%/NN
of/IN
the/DT
cellular/JJ
and/CC
broadcasting/VBG
concern/NN
;/:
the/DT
revised/VBN
offer/NN
includes/VBZ
a/DT
feature/NN
requiring/VBG
McCaw/NNP
to/TO
begin/VB
an/DT
auction/NN
process/NN
in/IN
July/NNP
1994/CD
that/WDT
would/MD
buy/VB
out/IN
remaining/VBG
holders/NNS
at/IN
a/DT
per-share/JJ
price/NN
roughly/RB
equivalent/JJ
to/TO
what/WP
a/DT
third/JJ
party/NN
might/MD
then/RB
have/VB
to/TO
pay/VB
for/IN
all/DT
of/IN
LIN/NNP
./.
The/DT
letter/NN
outlines/VBZ
broad/JJ
powers/NNS
for/IN
an/DT
independent/JJ
group/NN
of/IN
directors/NNS
provided/VBN
for/IN
in/IN
the/DT
revised/VBN
offer/NN
./.
In/IN
a/DT
statement/NN
,/,
Craig/NNP
O./NNP
McCaw/NNP
,/,
chairman/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
McCaw/NNP
,/,
said/VBD
:/:
``/``
We/PRP
trust/VBP
LIN/NNP
will/MD
take/VB
no/DT
further/JJ
actions/NNS
that/WDT
favor/VBP
BellSouth/NNP
./.
''/''
McCaw/NNP
said/VBD
the/DT
three/CD
independent/JJ
directors/NNS
provided/VBN
for/IN
in/IN
the/DT
offer/NN
would/MD
be/VB
designated/VBN
by/IN
the/DT
current/JJ
board/NN
./.
The/DT
successors/NNS
would/MD
be/VB
nominated/VBN
by/IN
the/DT
independent/JJ
directors/NNS
./.
LIN/NNP
would/MD
have/VB
a/DT
priority/NN
right/NN
to/TO
pursue/VB
all/DT
opportunities/NNS
to/TO
acquire/VB
U.S./NNP
cellular/JJ
interests/NNS
in/IN
markets/NNS
other/JJ
than/IN
those/DT
in/IN
which/WDT
McCaw/NNP
holds/VBZ
an/DT
interest/NN
,/,
or/CC
which/WDT
are/VBP
contiguous/JJ
to/TO
those/DT
markets/NNS
,/,
unless/IN
LIN/NNP
has/VBZ
an/DT
interest/NN
there/RB
or/CC
contiguous/JJ
to/TO
it/PRP
./.
Independent/JJ
directors/NNS
would/MD
have/VB
veto/NN
rights/NNS
to/TO
any/DT
acquisition/NN
if/IN
they/PRP
unanimously/RB
decide/VBP
it/PRP
is/VBZ
n't/RB
in/IN
LIN/NNP
's/POS
best/JJS
interest/NN
./.
Independent/JJ
directors/NNS
would/MD
be/VB
able/JJ
to/TO
block/VB
transactions/NNS
they/PRP
unanimously/RB
deem/VBP
would/MD
be/VB
likely/JJ
to/TO
depress/VB
the/DT
private/JJ
market/NN
value/NN
of/IN
LIN/NNP
at/IN
the/DT
time/NN
it/PRP
is/VBZ
to/TO
be/VB
sold/VBN
in/IN
five/CD
years/NNS
./.
If/IN
LIN/NNP
is/VBZ
put/VBN
up/IN
for/IN
sale/NN
rather/RB
than/IN
purchased/VBN
by/IN
McCaw/NNP
in/IN
five/CD
years/NNS
,/,
McCaw/NNP
wo/MD
n't/RB
submit/VB
a/DT
bid/NN
unless/IN
the/DT
independent/JJ
directors/NNS
request/VBP
it/PRP
,/,
and/CC
the/DT
independent/JJ
directors/NNS
will/MD
run/VB
the/DT
bidding/NN
./.
The/DT
directors/NNS
would/MD
be/VB
able/JJ
to/TO
sell/VB
particular/JJ
assets/NNS
to/TO
enable/VB
such/JJ
buyers/NNS
as/IN
the/DT
regional/JJ
Bell/NNP
operating/VBG
companies/NNS
to/TO
purchase/VB
the/DT
company/NN
's/POS
interests/NNS
./.
MCA/NNP
Inc./NNP
said/VBD
third-quarter/JJ
net/NN
fell/VBD
6.3/CD
%/NN
to/TO
$/$
50.8/CD
million/CD
,/,
or/CC
69/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
54.3/CD
million/CD
,/,
or/CC
74/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
MCA/NNP
said/VBD
revenue/NN
rose/VBD
14/CD
%/NN
to/TO
$/$
918.4/CD
million/CD
from/IN
$/$
806.7/CD
million/CD
./.
The/DT
entertainment/NN
concern/NN
said/VBD
the/DT
success/NN
of/IN
several/JJ
movies/NNS
released/VBN
during/IN
the/DT
quarter/NN
,/,
including/VBG
``/``
Parenthood/NNP
''/''
and/CC
``/``
Uncle/NNP
Buck/NNP
,/,
''/''
contributed/VBD
to/TO
record/NN
revenue/NN
for/IN
its/PRP$
film/NN
unit/NN
./.
Both/DT
MCA/NNP
's/POS
music-entertainment/NN
and/CC
book-publishing/NN
units/NNS
also/RB
posted/VBD
record/NN
revenue/NN
and/CC
operating/VBG
profit/NN
./.
The/DT
parent/NN
company/NN
's/POS
net/NN
included/VBD
a/DT
loss/NN
--/:
which/WDT
it/PRP
did/VBD
n't/RB
specify/VB
--/:
that/WDT
was/VBD
related/VBN
to/TO
the/DT
company/NN
's/POS
50/CD
%/NN
stake/NN
in/IN
Cineplex/NNP
Odeon/NNP
Corp/NNP
./.
Cineplex/NNP
,/,
a/DT
Toronto/NNP
theater/NN
chain/NN
,/,
had/VBD
a/DT
second-quarter/JJ
net/JJ
loss/NN
of/IN
$/$
38.7/CD
million/CD
./.
MCA/NNP
said/VBD
net/NN
also/RB
included/VBD
certain/JJ
reserves/NNS
related/VBN
to/TO
the/DT
restructuring/NN
of/IN
its/PRP$
LJN/NNP
Toys/NNPS
'/POS
international/JJ
operations/NNS
./.
These/DT
items/NNS
were/VBD
partly/RB
offset/VBN
,/,
MCA/NNP
said/VBD
,/,
by/IN
an/DT
unspecified/JJ
gain/NN
on/IN
the/DT
sale/NN
of/IN
its/PRP$
Miller/NNP
International/NNP
unit/NN
,/,
a/DT
maker/NN
and/CC
distributor/NN
of/IN
budget-priced/JJ
audio/JJ
cassettes/NNS
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
MCA/NNP
rose/VBD
$/$
1.50/CD
to/TO
$/$
64/CD
./.
In/IN
the/DT
nine/CD
months/NNS
,/,
net/NN
rose/VBD
35/CD
%/NN
to/TO
$/$
120.1/CD
million/CD
,/,
or/CC
$/$
1.64/CD
a/DT
share/NN
,/,
from/IN
$/$
89.2/CD
million/CD
,/,
or/CC
$/$
1.22/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Revenue/NN
increased/VBD
22/CD
%/NN
to/TO
$/$
2.5/CD
billion/CD
from/IN
$/$
2.1/CD
billion/CD
./.
Past/NNP
Due/NNP
Impasse/NNP
I/PRP
never/RB
pay/VBP
my/PRP$
bills/NNS
Till/IN
the/DT
very/RB
last/JJ
day/NN
;/:
I/PRP
lose/VBP
far/RB
less/JJR
interest/NN
By/IN
proceeding/VBG
that/DT
way/NN
./.
But/CC
it/PRP
all/RB
evens/VBZ
out/IN
,/,
It/PRP
's/VBZ
so/RB
easy/JJ
to/TO
see/VB
:/:
Not/RB
till/IN
the/DT
last/JJ
moment/NN
Am/VBP
I/PRP
paid/VBN
what/WP
's/VBZ
due/JJ
me/PRP
./.
--/:
Arnold/NNP
J./NNP
Zarett/NNP
./.
Rex/NNP
Tremendae/NNP
The/DT
effete/JJ
Tyrannosaurus/NNP
Rex/NNP
Had/VBD
strict/JJ
Cretaceous/JJ
views/NNS
on/IN
sex/NN
,/,
And/CC
that/DT
is/VBZ
why/WRB
you/PRP
only/RB
see/VB
him/PRP
Reproduced/VBN
in/IN
the/DT
museum/NN
./.
--/:
Laurence/NNP
W./NNP
Thomas/NNP
./.
Helmsley/NNP
Enterprises/NNPS
Inc./NNP
plans/VBZ
to/TO
close/VB
its/PRP$
company-owned/JJ
insurance/NN
business/NN
and/CC
is/VBZ
seeking/VBG
other/JJ
brokers/NNS
to/TO
take/VB
over/IN
its/PRP$
policies/NNS
,/,
according/VBG
to/TO
individuals/NNS
familiar/JJ
with/IN
the/DT
New/NNP
York/NNP
firm/NN
./.
Helmsley/NNP
Enterprises/NNPS
is/VBZ
the/DT
umbrella/NN
organization/NN
for/IN
companies/NNS
controlled/VBN
by/IN
Harry/NNP
B./NNP
Helmsley/NNP
./.
These/DT
include/VBP
office/NN
and/CC
residential/JJ
real/JJ
estate/NN
giant/NN
,/,
HelmsleySpear/NNP
Inc./NNP
,/,
and/CC
Helmsley/NNP
Hotels/NNPS
./.
The/DT
insurance/NN
brokerage/NN
agency/NN
,/,
just/RB
a/DT
fragment/NN
of/IN
Helmsley/NNP
's/POS
vast/JJ
empire/NN
,/,
would/MD
be/VB
the/DT
first/JJ
piece/NN
of/IN
the/DT
company/NN
to/TO
be/VB
stripped/VBN
away/RB
since/IN
last/JJ
summer/NN
when/WRB
Mr./NNP
Helmsley/NNP
's/POS
wife/NN
,/,
Leona/NNP
Helmsley/NNP
,/,
was/VBD
found/VBN
guilty/JJ
of/IN
tax/NN
evasion/NN
./.
Industry/NN
sources/NNS
estimate/VBP
the/DT
agency/NN
brokers/NNS
property/NN
and/CC
casualty/NN
premiums/NNS
worth/JJ
about/IN
$/$
25/CD
million/CD
annually/RB
,/,
and/CC
has/VBZ
revenue/NN
,/,
based/VBN
on/IN
a/DT
standard/JJ
10/CD
%/NN
commission/NN
rate/NN
,/,
of/IN
about/IN
$/$
2.5/CD
million/CD
./.
The/DT
insurance/NN
firm/NN
acts/VBZ
as/IN
a/DT
broker/NN
on/IN
policies/NNS
covering/VBG
buildings/NNS
managed/VBN
by/IN
HelmsleySpear/NNP
and/CC
others/NNS
./.
Many/JJ
of/IN
the/DT
properties/NNS
are/VBP
owned/VBN
through/IN
limited/VBN
partnerships/NNS
controlled/VBN
by/IN
Mr./NNP
Helmsley/NNP
./.
New/NNP
York/NNP
State/NNP
law/NN
prohibits/VBZ
insurance/NN
brokerages/NNS
from/IN
deriving/VBG
more/RBR
than/IN
10/CD
%/NN
of/IN
revenue/NN
from/IN
insuring/VBG
affiliated/VBN
companies/NNS
./.
Helmsley/NNP
's/POS
insurance/NN
division/NN
had/VBD
slightly/RB
exceeded/VBN
that/DT
percentage/NN
,/,
sources/NNS
say/VBP
,/,
but/CC
the/DT
division/NN
was/VBD
n't/RB
considered/VBN
significant/JJ
enough/RB
to/TO
the/DT
company/NN
to/TO
be/VB
restructured/VBN
,/,
particularly/RB
at/IN
a/DT
difficult/JJ
time/NN
for/IN
the/DT
firm/NN
./.
Adverse/JJ
publicity/NN
from/IN
the/DT
scandal/NN
surrounding/VBG
its/PRP$
founder/NN
's/POS
wife/NN
and/CC
related/VBN
management/NN
strife/NN
have/VBP
put/VBN
pressure/NN
on/IN
the/DT
entire/JJ
Helmsley/NNP
organization/NN
./.
However/RB
,/,
individuals/NNS
close/VBP
to/TO
the/DT
company/NN
insist/VBP
shuttering/VBG
the/DT
insurance/NN
division/NN
,/,
a/DT
sideline/NN
from/IN
the/DT
company/NN
's/POS
core/NN
property/NN
management/NN
business/NN
,/,
is/VBZ
n't/RB
the/DT
beginning/NN
of/IN
a/DT
sale/NN
of/IN
assets/NNS
./.
Helmsley/NNP
's/POS
insurance/NN
premiums/NNS
are/VBP
expected/VBN
to/TO
be/VB
transferred/VBN
to/TO
several/JJ
different/JJ
insurance/NN
brokerage/NN
companies/NNS
./.
Frank/NNP
B./NNP
Hall/NNP
Inc./NNP
of/IN
Briarcliff/NNP
Manor/NNP
,/,
N.Y./NNP
is/VBZ
reportedly/RB
working/VBG
out/IN
an/DT
agreement/NN
with/IN
Helmsley/NNP
./.
Officials/NNS
there/RB
declined/VBD
to/TO
comment/VB
,/,
as/IN
did/VBD
Helmsley/NNP
management/NN
./.
Outside/IN
the/DT
white-walled/JJ
headquarters/NN
of/IN
the/DT
socalled/JJ
Society/NNP
of/IN
Orange/NNP
Workers/NNPS
,/,
all/DT
seems/VBZ
normal/RB
in/IN
South/NNP
Africa/NNP
's/POS
abnormal/JJ
society/NN
./.
A/DT
pickup/NN
truck/NN
driven/VBN
by/IN
a/DT
white/JJ
farmer/NN
rumbles/VBZ
past/NN
with/IN
a/DT
load/NN
of/IN
black/JJ
workers/NNS
bouncing/VBG
in/IN
the/DT
back/NN
./.
Over/IN
at/IN
Conradies/NNP
,/,
the/DT
general/JJ
store/NN
,/,
a/DT
black/JJ
stock/NN
boy/NN
scurries/NNS
to/TO
help/VB
an/DT
elderly/JJ
white/JJ
woman/NN
with/IN
her/PRP$
packages/NNS
./.
Down/IN
the/DT
street/NN
,/,
a/DT
car/NN
pulls/VBZ
into/IN
the/DT
Shell/NNP
station/NN
and/CC
is/VBZ
surrounded/VBN
by/IN
black/JJ
attendants/NNS
./.
But/CC
inside/IN
the/DT
white/JJ
walls/NNS
of/IN
the/DT
Orange/NNP
Workers/NNPS
'/POS
office/NN
--/:
just/RB
about/IN
the/DT
largest/JJS
building/NN
in/IN
town/NN
,/,
save/IN
for/IN
the/DT
Dutch/NNP
Reformed/NNP
Church/NNP
and/CC
the/DT
school/NN
--/:
South/NNP
Africa/NNP
's/POS
neat/JJ
racial/JJ
order/NN
is/VBZ
awry/JJ
./.
A/DT
dozen/NN
white/JJ
office/NN
workers/NNS
fold/VBP
newsletters/NNS
and/CC
stuff/VBP
them/PRP
into/IN
envelopes/NNS
./.
White/JJ
women/NNS
serve/VBP
tea/NN
and/CC
coffee/NN
,/,
and/CC
then/RB
wash/VBP
the/DT
cups/NNS
and/CC
saucers/NNS
afterwards/RB
./.
White/JJ
children/NNS
empty/VBP
the/DT
wastepaper/NN
baskets/NNS
and/CC
squeegee/VBP
the/DT
windows/NNS
./.
There/EX
is/VBZ
n't/RB
a/DT
black/JJ
worker/NN
in/IN
sight/NN
./.
Not/RB
in/IN
the/DT
kitchen/NN
,/,
or/CC
the/DT
storeroom/NN
or/CC
the/DT
book/NN
shop/NN
./.
``/``
If/IN
we/PRP
want/VBP
to/TO
have/VB
our/PRP$
own/JJ
nation/NN
,/,
then/RB
we/PRP
must/MD
be/VB
willing/JJ
to/TO
do/VB
all/PDT
the/DT
work/NN
ourselves/PRP
,/,
''/''
says/VBZ
Hendrik/NNP
Verwoerd/NNP
Jr./NNP
,/,
son/NN
of/IN
the/DT
former/JJ
prime/JJ
minister/NN
and/CC
the/DT
leader/NN
of/IN
the/DT
Orange/NNP
Workers/NNPS
,/,
founded/VBN
in/IN
1980/CD
./.
They/PRP
do/VBP
indeed/RB
want/VB
their/PRP$
own/JJ
nation/NN
./.
The/DT
pillars/NNS
of/IN
apartheid/NN
may/MD
be/VB
trembling/VBG
in/IN
the/DT
rest/NN
of/IN
South/NNP
Africa/NNP
,/,
with/IN
Johannesburg/NNP
opening/VBG
its/PRP$
public/JJ
facilities/NNS
to/TO
all/DT
races/NNS
,/,
blacks/NNS
storming/VBG
the/DT
all-white/JJ
beaches/NNS
of/IN
the/DT
Cape/NNP
and/CC
the/DT
government/NN
releasing/VBG
seven/CD
leaders/NNS
of/IN
the/DT
banned/VBN
African/NNP
National/NNP
Congress/NNP
./.
But/CC
here/RB
in/IN
Morgenzon/NNP
,/,
a/DT
sleepy/JJ
town/NN
amid/IN
the/DT
corn/NN
fields/NNS
of/IN
the/DT
eastern/JJ
Transvaal/NNP
,/,
the/DT
Orange/NNP
Workers/NNPS
are/VBP
holding/VBG
the/DT
pillars/NNS
steady/RB
./.
The/DT
Orange/NNP
Workers/NNPS
--/:
who/WP
take/VBP
their/PRP$
name/NN
from/IN
William/NNP
of/IN
Orange/NNP
of/IN
the/DT
Netherlands/NNP
,/,
a/DT
hero/NN
of/IN
the/DT
Dutch-descended/JJ
Afrikaners/NNPS
--/:
believe/VBP
that/IN
the/DT
solution/NN
to/TO
South/NNP
Africa/NNP
's/POS
racial/JJ
problems/NNS
is/VBZ
n't/RB
the/DT
abolition/NN
of/IN
apartheid/NN
,/,
it/PRP
's/VBZ
the/DT
perfection/NN
of/IN
apartheid/NN
--/:
complete/JJ
and/CC
total/JJ
separation/NN
of/IN
the/DT
races/NNS
./.
Here/RB
,/,
then/RB
,/,
is/VBZ
where/WRB
the/DT
Orange/NNP
Workers/NNPS
have/VBP
come/VBN
to/TO
make/VB
apartheid/NN
's/POS
last/JJ
stand/NN
./.
Their/PRP$
idea/NN
is/VBZ
to/TO
create/VB
a/DT
city/NN
,/,
first/JJ
,/,
and/CC
then/RB
an/DT
entire/JJ
nation/NN
--/:
without/IN
blacks/NNS
./.
This/DT
may/MD
seem/VB
to/TO
be/VB
a/DT
preposterous/JJ
and/CC
utterly/RB
futile/JJ
effort/NN
in/IN
Africa/NNP
./.
And/CC
the/DT
fact/NN
that/IN
there/EX
are/VBP
only/RB
3,000/CD
card-carrying/JJ
Orange/NNP
Workers/NNPS
may/MD
put/VB
them/PRP
on/IN
the/DT
loony/JJ
fringe/NN
./.
But/CC
their/PRP$
ideal/NN
of/IN
an/DT
Afrikaner/JJ
homeland/NN
,/,
an/DT
all-white/JJ
reserve/NN
to/TO
be/VB
carved/VBN
out/IN
of/IN
present-day/JJ
South/NNP
Africa/NNP
,/,
is/VBZ
a/DT
mainstream/NN
desire/NN
of/IN
the/DT
right-wing/NN
,/,
which/WDT
embraces/VBZ
about/IN
one-third/NN
of/IN
the/DT
country/NN
's/POS
five/CD
million/CD
whites/NNS
./.
Afrikaner/JJ
philosophers/NNS
and/CC
theologians/NNS
have/VBP
long/RB
ruminated/VBN
on/IN
the/DT
need/NN
for/IN
a/DT
white/JJ
homeland/NN
./.
The/DT
Orange/NNP
Workers/NNPS
are/VBP
just/RB
putting/VBG
this/DT
preaching/NN
into/IN
practice/NN
./.
Thus/RB
,/,
farmer/NN
Johan/NNP
Fischer/NNP
,/,
his/PRP$
T-shirt/NNS
and/CC
jeans/NNS
covered/VBN
in/IN
grease/NN
,/,
crawls/VBZ
around/IN
under/IN
his/PRP$
planter/NN
,/,
tightening/VBG
bolts/NNS
and/CC
fixing/VBG
dents/NNS
./.
On/IN
almost/RB
every/DT
other/JJ
farm/NN
in/IN
South/NNP
Africa/NNP
,/,
black/JJ
workers/NNS
do/VBP
the/DT
repairs/NNS
./.
But/CC
not/RB
here/RB
./.
Mr./NNP
Fischer/NNP
plows/VBZ
his/PRP$
own/JJ
fields/NNS
,/,
sows/VBZ
his/PRP$
own/JJ
corn/NN
and/CC
sunflowers/NNS
,/,
and/CC
feeds/VBZ
his/PRP$
own/JJ
sheep/NN
./.
Over/IN
at/IN
the/DT
fiberglass/NNS
factory/NN
,/,
four/CD
white/JJ
workers/NNS
assemble/VBP
water/NN
tanks/NNS
on/IN
their/PRP$
own/JJ
,/,
and/CC
in/IN
their/PRP$
spare/JJ
time/NN
they/PRP
build/VBP
townhouses/NNS
across/IN
the/DT
road/NN
./.
On/IN
Main/NNP
Street/NNP
,/,
Alida/NNP
Verwoerd/NNP
and/CC
her/PRP$
daughters/NNS
look/VB
after/IN
the/DT
clothes/NNS
and/CC
fabric/NN
shop/NN
,/,
then/RB
hurry/VB
home/NN
to/TO
fix/VB
lunch/NN
for/IN
the/DT
rest/NN
of/IN
the/DT
family/NN
./.
Down/IN
by/IN
the/DT
stream/NN
,/,
a/DT
group/NN
of/IN
Orange/NNP
Workers/NNPS
puts/VBZ
the/DT
finishing/VBG
touches/NNS
on/IN
a/DT
golf/NN
course/NN
./.
If/IN
whites/NNS
want/VBP
to/TO
play/VB
there/RB
by/IN
themselves/PRP
,/,
says/VBZ
consulting/VBG
engineer/NN
Willem/NNP
van/NNP
Heerden/NNP
,/,
whites/NNS
should/MD
also/RB
build/VB
it/PRP
by/IN
themselves/PRP
./.
``/``
If/IN
we/PRP
want/VBP
to/TO
survive/VB
as/IN
a/DT
people/NNS
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
we/PRP
have/VBP
to/TO
change/VB
our/PRP$
way/NN
of/IN
life/NN
./.
The/DT
Afrikaner/NNP
must/MD
end/VB
his/PRP$
reliance/NN
on/IN
others/NNS
./.
''/''
In/IN
their/PRP$
quest/NN
to/TO
perfect/JJ
apartheid/NN
,/,
the/DT
Orange/NNP
Workers/NNPS
have/VBP
discovered/VBN
a/DT
truth/NN
that/IN
most/JJS
of/IN
privileged/JJ
white/JJ
South/NNP
Africa/NNP
tries/VBZ
mightily/RB
to/TO
deny/VB
:/:
The/DT
master/NN
ca/MD
n't/RB
become/VB
dependent/JJ
on/IN
the/DT
slave/NN
and/CC
expect/VB
to/TO
remain/VB
master/NN
forever/RB
./.
``/``
If/IN
apartheid/NN
means/VBZ
you/PRP
want/VBP
cheap/JJ
black/JJ
labor/NN
and/CC
all/PDT
the/DT
comforts/NNS
that/WDT
go/VBP
with/IN
it/PRP
,/,
but/CC
you/PRP
also/RB
want/VBP
to/TO
exclude/VB
the/DT
blacks/NNS
from/IN
social/JJ
and/CC
political/JJ
integration/NN
,/,
then/RB
these/DT
are/VBP
two/CD
contradictions/NNS
that/WDT
ca/MD
n't/RB
go/VB
on/IN
forever/RB
,/,
''/''
says/VBZ
Mr./NNP
Verwoerd/NNP
./.
He/PRP
is/VBZ
sitting/VBG
in/IN
his/PRP$
living/VBG
room/NN
,/,
beneath/IN
a/DT
huge/JJ
portrait/NN
of/IN
his/PRP$
late/JJ
father/NN
,/,
Hendrik/NNP
F./NNP
Verwoerd/NNP
,/,
apartheid/NN
's/POS
architect/NN
and/CC
South/JJ
African/JJ
prime/JJ
minister/NN
from/IN
1958/CD
to/TO
1966/CD
./.
Somewhere/RB
,/,
the/DT
son/NN
sighs/VBZ
,/,
things/NNS
went/VBD
terribly/RB
wrong/JJ
with/IN
apartheid/NN
;/:
today/NN
,/,
whites/NNS
even/RB
rely/VBP
on/IN
blacks/NNS
to/TO
police/VB
their/PRP$
separation/NN
./.
``/``
People/NNS
took/VBD
separate/JJ
development/NN
as/IN
an/DT
opportunity/NN
to/TO
use/VB
black/JJ
labor/NN
without/IN
ever/RB
getting/VBG
rid/JJ
of/IN
it/PRP
./.
But/CC
my/PRP$
father/NN
meant/VBD
it/PRP
to/TO
mean/VB
real/JJ
separation/NN
,/,
''/''
says/VBZ
the/DT
son/NN
./.
The/DT
Orange/NNP
Workers/NNPS
speak/VBP
sincerely/RB
./.
``/``
We/PRP
agree/VBP
with/IN
world/NN
opinion/NN
that/IN
the/DT
status/FW
quo/FW
in/IN
South/NNP
Africa/NNP
is/VBZ
morally/RB
wrong/JJ
,/,
''/''
says/VBZ
Pieter/NNP
Bruwer/NNP
,/,
the/DT
Orange/NNP
Workers/NNPS
'/POS
chief/NN
scribe/NN
and/CC
pamphleteer/NN
./.
``/``
We/PRP
must/MD
either/RB
integrate/VB
honestly/RB
or/CC
segregate/VB
honestly/RB
./.
''/''
Morgenzon/NNP
has/VBZ
long/RB
been/VBN
a/DT
special/JJ
domain/NN
of/IN
Afrikanerdom/NNP
./.
According/VBG
to/TO
Mr./NNP
Verwoerd/NNP
,/,
the/DT
early/JJ
Afrikaner/JJ
pioneers/NNS
were/VBD
the/DT
first/JJ
people/NNS
to/TO
settle/VB
in/IN
the/DT
eastern/JJ
Transvaal/JJ
,/,
even/RB
before/IN
the/DT
blacks/NNS
./.
Then/RB
,/,
when/WRB
Morgenzon/NNP
was/VBD
incorporated/VBN
in/IN
1908/CD
,/,
the/DT
farmer/NN
who/WP
owned/VBD
the/DT
land/NN
stipulated/VBD
that/IN
only/JJ
whites/NNS
could/MD
reside/VB
in/IN
town/NN
;/:
blacks/NNS
could/MD
work/VB
there/RB
,/,
but/CC
they/PRP
had/VBD
to/TO
leave/VB
at/IN
night/NN
./.
Today/NN
,/,
Morgenzon/NNP
is/VBZ
a/DT
town/NN
of/IN
800/CD
whites/NNS
and/CC
two/CD
paved/JJ
roads/NNS
./.
Weeds/NNS
push/VBP
up/IN
through/IN
the/DT
cracks/NNS
in/IN
the/DT
sidewalks/NNS
,/,
and/CC
many/JJ
houses/NNS
and/CC
storefronts/NNS
are/VBP
empty/JJ
./.
There/EX
are/VBP
few/JJ
factories/NNS
and/CC
no/DT
mines/NNS
./.
It/PRP
was/VBD
an/DT
ideal/JJ
place/NN
for/IN
the/DT
Orange/NNP
Workers/NNPS
to/TO
start/VB
their/PRP$
new/JJ
nation/NN
,/,
unencumbered/JJ
by/IN
the/DT
demographics/NNS
that/WDT
have/VBP
undermined/VBN
apartheid/NN
elsewhere/RB
in/IN
South/NNP
Africa/NNP
./.
So/IN
far/RB
,/,
about/IN
150/CD
Orange/NNP
Workers/NNPS
have/VBP
moved/VBN
here/RB
,/,
spending/VBG
nearly/RB
$/$
1/CD
million/CD
buying/NN
up/IN
property/NN
over/IN
the/DT
past/JJ
three/CD
years/NNS
./.
Still/RB
,/,
complete/JJ
and/CC
total/JJ
segregation/NN
remains/VBZ
elusive/JJ
./.
Just/RB
beyond/IN
the/DT
city/NN
limits/NNS
is/VBZ
a/DT
shantytown/NN
of/IN
2,000/CD
blacks/NNS
who/WP
are/VBP
employed/VBN
throughout/IN
the/DT
area/NN
./.
Despite/IN
the/DT
Orange/NNP
Workers/NNPS
'/POS
intention/NN
to/TO
put/VB
them/PRP
all/DT
out/IN
of/IN
work/NN
,/,
they/PRP
are/VBP
in/IN
no/DT
hurry/NN
to/TO
leave/VB
./.
A/DT
young/JJ
man/NN
called/VBN
July/NNP
that/DT
's/VBZ
when/WRB
he/PRP
was/VBD
born/VBN
)/)
,/,
who/WP
works/VBZ
at/IN
the/DT
railroad/NN
station/NN
just/RB
up/IN
the/DT
street/NN
from/IN
the/DT
Orange/NNP
Workers/NNPS
office/NN
,/,
points/VBZ
at/IN
the/DT
whitewalled/JJ
building/NN
and/CC
says/VBZ
matter-of-factly/RB
,/,
``/``
We/PRP
're/VBP
not/RB
allowed/VBN
in/IN
there/RB
,/,
that/DT
's/VBZ
all/DT
I/PRP
know/VBP
./.
''/''
The/DT
650-or-so/JJ
local/JJ
whites/NNS
who/WP
are/VBP
n't/RB
Orange/NNP
Workers/NNPS
are/VBP
more/RBR
troubled/VBN
./.
Try/VB
as/IN
they/PRP
might/MD
,/,
they/PRP
just/RB
ca/MD
n't/RB
conceive/VB
of/IN
life/NN
without/IN
black/JJ
workers/NNS
./.
``/``
Impossible/JJ
,/,
impossible/JJ
,/,
''/''
say/VBP
the/DT
Conradies/NNPS
,/,
an/DT
elderly/JJ
couple/NN
who/WP
have/VBP
run/VBN
the/DT
general/JJ
store/NN
for/IN
decades/NNS
./.
``/``
We/PRP
ca/MD
n't/RB
do/VB
without/IN
their/PRP$
help/NN
,/,
''/''
says/VBZ
Mrs./NNP
Conradie/NNP
./.
``/``
Oh/UH
no/UH
./.
We/PRP
need/VBP
them/PRP
and/CC
I/PRP
thank/VBP
God/NNP
for/IN
them/PRP
./.
''/''
Over/IN
at/IN
the/DT
Shell/NNP
station/NN
,/,
owner/NN
Rudi/NNP
van/NNP
Dyk/NNP
,/,
who/WP
doubles/VBZ
as/IN
Morgenzon/NNP
's/POS
mayor/NN
,/,
worries/VBZ
that/IN
the/DT
Orange/NNP
Workers/NNPS
have/VBP
made/VBN
his/PRP$
town/NN
the/DT
laughingstock/NN
of/IN
the/DT
nation/NN
./.
``/``
What/WP
they/PRP
want/VBP
us/PRP
to/TO
do/VB
just/RB
is/VBZ
n't/RB
practical/JJ
,/,
''/''
he/PRP
says/VBZ
,/,
noting/VBG
that/IN
he/PRP
employs/VBZ
16/CD
blacks/NNS
./.
``/``
I/PRP
could/MD
n't/RB
afford/VB
to/TO
hire/VB
16/CD
whites/NNS
./.
The/DT
only/JJ
Afrikaners/NNPS
who/WP
would/MD
be/VB
willing/JJ
to/TO
work/VB
for/IN
this/DT
salary/NN
would/MD
n't/RB
know/VB
how/WRB
to/TO
handle/VB
money/NN
./.
''/''
Back/RB
at/IN
the/DT
Verwoerd/NNP
house/NN
,/,
Hendrik/NNP
Sr./NNP
peers/VBZ
down/IN
over/IN
the/DT
shoulder/NN
of/IN
Hendrik/NNP
Jr/NNP
./.
The/DT
son/NN
believes/VBZ
that/IN
when/WRB
the/DT
Afrikaners/NNPS
finally/RB
realize/VBP
there/EX
is/VBZ
no/RB
turning/VBG
back/RB
the/DT
integration/NN
of/IN
South/JJ
African/JJ
society/NN
and/CC
politics/NNS
,/,
Morgenzon/NNP
will/MD
boom/VB
./.
``/``
We/PRP
urge/VBP
our/PRP$
people/NNS
not/RB
to/TO
wait/VB
until/IN
they/PRP
have/VBP
to/TO
fight/VB
for/IN
their/PRP$
own/JJ
nation/NN
,/,
''/''
says/VBZ
Mr./NNP
Verwoerd/NNP
./.
``/``
By/IN
populating/VBG
a/DT
place/NN
now/RB
,/,
we/PRP
make/VBP
ourselves/PRP
a/DT
power/NN
any/DT
new/JJ
government/NN
will/MD
have/VB
to/TO
take/VB
into/IN
account/NN
./.
''/''
Curiously/RB
,/,
he/PRP
compares/VBZ
the/DT
Orange/NNP
Workers/NNPS
to/TO
the/DT
ANC/NNP
,/,
which/WDT
his/PRP$
father/NN
outlawed/VBD
in/IN
1960/CD
./.
``/``
The/DT
ANC/NNP
wo/MD
n't/RB
be/VB
stopped/VBN
until/IN
there/EX
is/VBZ
a/DT
provision/NN
for/IN
black/JJ
aspirations/NNS
,/,
''/''
says/VBZ
Mr./NNP
Verwoerd/NNP
./.
``/``
Likewise/RB
,/,
no/DT
government/NN
will/MD
stop/VB
this/DT
idea/NN
of/IN
the/DT
Afrikaners/NNPS
./.
''/''
He/PRP
apologizes/VBZ
for/IN
sounding/VBG
pushy/JJ
./.
``/``
Look/VB
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
If/IN
the/DT
rest/NN
of/IN
South/NNP
Africa/NNP
wants/VBZ
to/TO
have/VB
an/DT
integrated/VBN
melting/NN
pot/NN
,/,
that/DT
's/VBZ
their/PRP$
choice/NN
./.
We/PRP
'll/MD
leave/VB
them/PRP
alone/RB
./.
We/PRP
just/RB
want/VBP
to/TO
have/VB
our/PRP$
own/JJ
cup/NN
of/IN
tea/NN
./.
''/''
And/CC
they/PRP
will/MD
even/RB
serve/VB
it/PRP
themselves/PRP
./.
Okay/UH
,/,
now/RB
you/PRP
can/MD
pick/VB
up/IN
that/DT
phone/NN
./.
But/CC
do/VB
n't/RB
do/VB
anything/NN
rash/JJ
./.
After/IN
last/JJ
Friday/NNP
's/POS
stock-market/JJ
plunge/NN
,/,
investment/NN
professionals/NNS
cautioned/VBD
people/NNS
to/TO
resist/VB
the/DT
urge/NN
to/TO
call/VB
their/PRP$
brokers/NNS
and/CC
sell/VB
stocks/NNS
./.
Not/RB
selling/VBG
into/IN
a/DT
panic/NN
turned/VBD
out/IN
to/TO
be/VB
very/RB
good/JJ
advice/NN
:/:
Despite/IN
the/DT
market/NN
's/POS
volatility/NN
,/,
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
has/VBZ
surged/VBN
114/CD
points/NNS
in/IN
the/DT
past/JJ
four/CD
days/NNS
./.
Now/RB
,/,
with/IN
a/DT
semblance/NN
of/IN
normalcy/NN
returning/VBG
,/,
some/DT
advisers/NNS
say/VBP
it/PRP
's/VBZ
time/NN
for/IN
investors/NNS
to/TO
take/VB
a/DT
hard/JJ
,/,
cold/JJ
look/NN
at/IN
the/DT
stocks/NNS
they/PRP
own/VBP
and/CC
consider/VBP
some/DT
careful/JJ
pruning/NN
./.
``/``
The/DT
market/NN
is/VBZ
sending/VBG
nervous/JJ
signals/NNS
,/,
''/''
says/VBZ
Peter/NNP
J./NNP
Canelo/NNP
,/,
chief/NN
market/NN
strategist/NN
for/IN
Bear/NNP
,/,
Stearns/NNP
&/CC
Co./NNP
,/,
and/CC
it/PRP
's/VBZ
``/``
unwise/JJ
''/''
to/TO
be/VB
overcommitted/VBN
to/TO
stocks/NNS
./.
Alan/NNP
Weston/NNP
,/,
president/NN
of/IN
Weston/NNP
Capital/NNP
Management/NNP
,/,
a/DT
Los/NNP
Angeles/NNP
money-management/NN
firm/NN
,/,
adds/VBZ
that/IN
in/IN
periods/NNS
of/IN
uncertainty/NN
like/IN
today/NN
,/,
``/``
it/PRP
's/VBZ
a/DT
good/JJ
time/NN
to/TO
cut/VB
out/IN
the/DT
dead/JJ
branches/NNS
of/IN
your/PRP$
portfolio/NN
./.
''/''
Not/RB
everybody/NN
agrees/VBZ
that/IN
it/PRP
's/VBZ
time/NN
to/TO
trim/VB
./.
``/``
We/PRP
are/VBP
n't/RB
inclined/VBN
to/TO
prune/VB
stock/NN
portfolios/NNS
now/RB
,/,
''/''
says/VBZ
Steven/NNP
G./NNP
Einhorn/NNP
,/,
chairman/NN
of/IN
the/DT
investment/NN
policy/NN
committee/NN
of/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
./.
``/``
Investors/NNS
should/MD
stay/VB
with/IN
their/PRP$
stocks/NNS
./.
We/PRP
expect/VBP
a/DT
choppy/JJ
and/CC
sloppy/JJ
market/NN
for/IN
a/DT
short/JJ
period/NN
,/,
but/CC
we/PRP
do/VBP
n't/RB
think/VB
it/PRP
will/MD
be/VB
ugly/JJ
./.
The/DT
downside/NN
is/VBZ
limited/VBN
./.
''/''
And/CC
even/RB
those/DT
who/WP
say/VBP
some/DT
selective/JJ
selling/NN
may/MD
be/VB
in/IN
order/NN
stress/NN
that/IN
individuals/NNS
need/VBP
to/TO
be/VB
in/IN
the/DT
stock/NN
market/NN
to/TO
achieve/VB
their/PRP$
long-term/JJ
investment/NN
objectives/NNS
and/CC
to/TO
help/VB
balance/VB
their/PRP$
other/JJ
assets/NNS
./.
Any/DT
selling/NN
,/,
they/PRP
say/VBP
,/,
should/MD
be/VB
well/RB
thought-out/JJ
,/,
and/CC
executed/VBD
gradually/RB
,/,
during/IN
market/NN
rallies/NNS
./.
They/PRP
offer/VBP
these/DT
suggestions/NNS
:/:
GET/VB
RID/VB
OF/IN
THE/DT
DOGS/NNS
./.
``/``
Sell/VB
stocks/NNS
that/WDT
are/VBP
n't/RB
doing/VBG
well/RB
now/RB
,/,
and/CC
that/DT
do/VBP
n't/RB
have/VB
good/JJ
earnings/NNS
prospects/NNS
,/,
''/''
says/VBZ
Alfred/NNP
Goldman/NNP
,/,
technical/JJ
analyst/NN
at/IN
St./NNP
Louis-based/JJ
A.G./NNP
Edwards/NNP
&/CC
Sons/NNPS
./.
``/``
Most/JJS
people/NNS
do/VBP
just/RB
the/DT
opposite/NN
:/:
They/PRP
sell/VBP
their/PRP$
winners/NNS
and/CC
keep/VBP
their/PRP$
losers/NNS
./.
''/''
Which/WDT
types/NNS
of/IN
stocks/NNS
are/VBP
most/RBS
likely/JJ
to/TO
qualify/VB
?/.
Technology/NN
stocks/NNS
,/,
says/VBZ
Mr./NNP
Goldman/NNP
./.
WATCH/VB
FOR/IN
EARNINGS/NNS
DISAPPOINTMENTS/NNS
./.
A/DT
company/NN
does/VBZ
n't/RB
have/VB
to/TO
post/VB
a/DT
loss/NN
to/TO
be/VB
a/DT
candidate/NN
for/IN
sale/NN
,/,
says/VBZ
Charles/NNP
I./NNP
Clough/NNP
Jr./NNP
,/,
chief/NN
market/NN
strategist/NN
at/IN
Merrill/NNP
Lynch/NNP
&/CC
Co/NNP
./.
If/IN
earnings/NNS
do/VBP
n't/RB
live/VB
up/IN
to/TO
analysts/NNS
'/POS
expectations/NNS
,/,
he/PRP
says/VBZ
,/,
that/DT
's/VBZ
enough/JJ
to/TO
dump/VB
the/DT
stock/NN
./.
John/NNP
Markese/NNP
,/,
director/NN
of/IN
research/NN
for/IN
the/DT
American/NNP
Association/NNP
of/IN
Individual/NNP
Investors/NNPS
,/,
raises/VBZ
a/DT
cautionary/JJ
note/NN
./.
``/``
Substituting/VBG
a/DT
rule/NN
of/IN
thumb/NN
for/IN
your/PRP$
own/JJ
judgment/NN
''/''
can/MD
be/VB
a/DT
mistake/NN
,/,
he/PRP
says/VBZ
./.
An/DT
earnings/NNS
disappointment/NN
may/MD
reflect/VB
a/DT
situation/NN
that/WDT
's/VBZ
short-term/JJ
./.
But/CC
Mr./NNP
Clough/NNP
says/VBZ
,/,
``/``
The/DT
risk/NN
is/VBZ
that/IN
earnings/NNS
disappointments/NNS
will/MD
continue/VB
./.
''/''
The/DT
economy/NN
is/VBZ
decelerating/VBG
after/IN
six/CD
good/JJ
years/NNS
,/,
and/CC
``/``
right/RB
now/RB
it/PRP
's/VBZ
better/JJR
to/TO
shoot/VB
first/RB
and/CC
ask/VB
questions/NNS
later/RB
./.
''/''
Which/WDT
types/NNS
of/IN
stocks/NNS
currently/RB
have/VBP
the/DT

greatest/JJS
earnings/NNS
risks/NNS
?/.
Computer/NN
companies/NNS
;/:
commodity/NN
cyclical/JJ
stocks/NNS
,/,
like/IN
autos/NNS
;/:
and/CC
retailing/NN
stocks/NNS
,/,
he/PRP
says/VBZ
./.
BEWARE/VB
OF/IN
HEAVY/JJ
DEBT/NN
./.
The/DT
companies/NNS
apt/JJ
to/TO
run/VB
into/IN
earnings/NNS
problems/NNS
soonest/JJS
are/VBP
the/DT
ones/NNS
with/IN
heavy/JJ
debt/NN
loads/NNS
,/,
says/VBZ
Larry/NNP
Biehl/NNP
,/,
partner/NN
in/IN
the/DT
San/NNP
Mateo/NNP
,/,
Calif./NNP
,/,
money-management/NN
firm/NN
of/IN
Bailard/NNP
,/,
Biehl/NNP
&/CC
Kaiser/NNP
./.
Mr./NNP
Canelo/NNP
of/IN
Bear/NNP
Stearns/NNP
agrees/VBZ
:/:
``/``
If/IN
we/PRP
do/VBP
have/VB
an/DT
economic/JJ
slowdown/NN
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
companies/NNS
with/IN
high/JJ
debt/NN
ratios/NNS
will/MD
be/VB
dumped/VBN
en/IN
masse/NN
./.
''/''
The/DT
best/JJS
course/NN
for/IN
individual/JJ
investors/NNS
is/VBZ
to/TO
sell/VB
these/DT
stocks/NNS
now/RB
,/,
the/DT
two/CD
advisers/NNS
say/VBP
./.
SELL/VB
`/``
WHISPER/NN
'/''
STOCKS/NNS
./.
UAL/NNP
Corp./NNP
's/POS
difficulty/NN
in/IN
obtaining/VBG
bank/NN
financing/NN
for/IN
its/PRP$
leveraged/JJ
buy-out/NN
and/CC
its/PRP$
resulting/VBG
price/NN
plunge/NN
is/VBZ
a/DT
tip-off/NN
to/TO
what/WP
's/VBZ
going/VBG
to/TO
happen/VB
to/TO
``/``
takeover/NN
stocks/NNS
,/,
''/''
says/VBZ
Mr./NNP
Canelo/NNP
./.
Takeover/NN
activity/NN
will/MD
slow/VB
down/IN
as/RB
more/JJR
and/CC
more/JJR
banks/NNS
tighten/VBP
their/PRP$
lending/NN
requirements/NNS
,/,
he/PRP
says/VBZ
./.
``/``
There/EX
'll/MD
be/VB
fewer/JJR
and/CC
fewer/JJR
deals/NNS
./.
''/''
Moreover/RB
,/,
many/JJ
financial/JJ
advisers/NNS
say/VBP
individuals/NNS
should/MD
be/VB
in/IN
the/DT
stock/NN
market/NN
as/IN
long-term/JJ
investors/NNS
,/,
not/RB
as/IN
traders/NNS
trying/VBG
to/TO
catch/VB
the/DT
next/JJ
hot/JJ
stock/NN
./.
In/IN
general/JJ
,/,
they/PRP
say/VBP
,/,
avoid/VB
takeover/NN
stocks/NNS
./.
COMPARE/VB
P\/E/NNP
RATIOS/NNS
WITH/IN
PROSPECTS/NNS
./.
Mr./NNP
Canelo/NNP
suggests/VBZ
that/IN
investors/NNS
compare/VBP
price\/earnings/NNS
ratios/NNS
the/DT
price/NN
of/IN
a/DT
share/NN
of/IN
stock/NN
divided/VBN
by/IN
a/DT
company/NN
's/POS
per-share/JJ
earnings/NNS
for/IN
a/DT
12-month/JJ
period/NN
projected/VBN
growth/NN
rates/NNS
./.
``/``
If/IN
you/PRP
think/VBP
earnings/NNS
will/MD
grow/VB
at/IN
20/CD
%/NN
a/DT
year/NN
,/,
it/PRP
's/VBZ
all/RB
right/JJ
to/TO
pay/VB
20/CD
times/NNS
earnings/NNS
,/,
''/''
he/PRP
says/VBZ
./.
``/``
But/CC
do/VBP
n't/RB
pay/VB
30/CD
times/NNS
earnings/NNS
for/IN
a/DT
company/NN
that/WDT
's/VBZ
expected/VBN
to/TO
grow/VB
at/IN
15/CD
%/NN
a/DT
year/NN
./.
''/''
Mr./NNP
Canelo/NNP
thinks/VBZ
the/DT
market/NN
will/MD
probably/RB
go/VB
higher/JJR
,/,
but/CC
``/``
will/MD
be/VB
ruthless/JJ
with/IN
stocks/NNS
if/IN
the/DT
earnings/NNS
are/VBP
n't/RB
there/RB
./.
''/''
Mr./NNP
Markese/NNP
cautions/VBZ
that/IN
investors/NNS
should/MD
n't/RB
slavishly/RB
follow/VB
any/DT
specific/JJ
price\/earnings/NNS
sell/NN
trigger/NN
./.
``/``
If/IN
you/PRP
say/VBP
sell/VB
anytime/RB
a/DT
company/NN
's/POS
price\/earnings/NNS
ratio/NN
exceeds/VBZ
15/CD
,/,
that/WDT
knocks/VBZ
out/IN
all/DT
your/PRP$
growth/NN
stocks/NNS
,/,
''/''
he/PRP
says/VBZ
./.
``/``
You/PRP
eliminate/VBP
companies/NNS
with/IN
substantial/JJ
prospects/NNS
that/WDT
are/VBP
moving/VBG
up/IN
in/IN
price/NN
./.
''/''
EXAMINE/VB
WHAT/WDT
HAS/VBZ
CHANGED/VBN
./.
Tom/NNP
Schlesinger/NNP
,/,
market/NN
analyst/NN
at/IN
A.G./NNP
Edwards/NNP
&/CC
Sons/NNPS
Inc./NNP
,/,
says/VBZ
investors/NNS
should/MD
consider/VB
selling/VBG
if/IN
there/EX
has/VBZ
been/VBN
a/DT
fundamental/JJ
change/NN
in/IN
a/DT
company/NN
since/IN
they/PRP
bought/VBD
its/PRP$
stock/NN
./.
Say/VB
you/PRP
purchased/VBD
a/DT
stock/NN
because/IN
of/IN
a/DT
new/JJ
product/NN
that/WDT
was/VBD
in/IN
the/DT
works/NNS
./.
Now/RB
,/,
because/IN
of/IN
various/JJ
difficulties/NNS
,/,
the/DT
product/NN
has/VBZ
been/VBN
scrapped/VBN
./.
Time/NN
to/TO
sell/VB
,/,
says/VBZ
Mr./NNP
Schlesinger/NNP
./.
Similarly/RB
,/,
he/PRP
says/VBZ
,/,
suppose/VB
you/PRP
were/VBD
attracted/VBN
to/TO
a/DT
company/NN
because/IN
of/IN
expectations/NNS
that/IN
sales/NNS
would/MD
hit/VB
$/$
200/CD
million/CD
by/IN
1990/CD
./.
If/IN
things/NNS
have/VBP
n't/RB
worked/VBN
out/IN
that/IN
well/RB
,/,
and/CC
sales/NNS
wo/MD
n't/RB
hit/VB
$/$
200/CD
million/CD
until/IN
1992/CD
,/,
it/PRP
's/VBZ
time/NN
to/TO
consider/VB
selling/VBG
,/,
he/PRP
says/VBZ
./.
USX/NNP
Corp./NNP
declined/VBD
a/DT
United/NNP
Steelworkers/NNPS
request/NN
for/IN
a/DT
reopening/VBG
of/IN
its/PRP$
four-year/JJ
labor/NN
contract/NN
that/WDT
is/VBZ
due/JJ
to/TO
expire/VB
Jan./NNP
31/CD
,/,
1991/CD
./.
The/DT
union/NN
on/IN
Oct./NNP
5/CD
requested/VBD
that/IN
the/DT
contract/NN
be/VB
reopened/VBN
to/TO
restore/VB
all/DT
pay/NN
and/CC
benefits/NNS
that/IN
the/DT
union/NN
gave/VBD
up/IN
in/IN
the/DT
1982-83/CD
and/CC
1986-87/CD
rounds/NNS
of/IN
bargaining/NN
./.
A/DT
United/NNP
Steelworkers/NNPS
spokeman/NN
said/VBD
Lynn/NNP
Williams/NNP
,/,
the/DT
union/NN
's/POS
president/NN
,/,
was/VBD
out/IN
of/IN
town/NN
./.
The/DT
union/NN
wo/MD
n't/RB
respond/VB
to/TO
the/DT
USX/NNP
statement/NN
until/IN
Mr./NNP
Williams/NNP
has/VBZ
studied/VBN
it/PRP
,/,
the/DT
spokesman/NN
said/VBD
./.
Robert/NNP
A./NNP
Oswald/NNP
,/,
chief/NN
financial/JJ
officer/NN
and/CC
a/DT
director/NN
of/IN
this/DT
natural-gas/JJ
pipeline/NN
company/NN
,/,
was/VBD
elected/VBN
to/TO
the/DT
additional/JJ
position/NN
of/IN
executive/JJ
vice/NN
president/NN
./.
In/IN
addition/NN
,/,
Michael/NNP
W./NNP
O'Donnell/NNP
,/,
executive/JJ
vice/NN
president/NN
of/IN
a/DT
Columbia/NNP
unit/NN
,/,
was/VBD
named/VBN
assistant/JJ
chief/NN
financial/JJ
officer/NN
and/CC
a/DT
senior/JJ
vice/NN
president/NN
of/IN
the/DT
parent/NN
company/NN
./.
The/DT
appointments/NNS
take/VBP
effect/NN
Nov./NNP
1/CD
./.
Both/DT
men/NNS
are/VBP
44/CD
years/NNS
old/JJ
./.
This/DT
magazine/NN
and/CC
book/NN
publisher/NN
said/VBD
three/CD
men/NNS
were/VBD
elected/VBN
directors/NNS
,/,
increasing/VBG
the/DT
board/NN
to/TO
10/CD
./.
They/PRP
are/VBP
:/:
James/NNP
R./NNP
Eiszner/NNP
,/,
62/CD
years/NNS
old/JJ
and/CC
chairman/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
CPC/NNP
International/NNP
Inc./NNP
;/:
Robert/NNP
G./NNP
Schwartz/NNP
,/,
61/CD
,/,
chairman/NN
,/,
president/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
Metropolitan/NNP
Life/NNP
Insurance/NNP
Co./NNP
,/,
and/CC
Walter/NNP
V./NNP
Shipley/NNP
,/,
53/CD
,/,
chairman/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
Chemical/NNP
Banking/NNP
Corp/NNP
./.
BankAmerica/NNP
Corp./NNP
reported/VBD
a/DT
34/CD
%/NN
jump/NN
in/IN
third-quarter/JJ
earnings/NNS
,/,
as/IN
its/PRP$
rocket-like/JJ
recovery/NN
from/IN
nearly/RB
ruinous/JJ
losses/NNS
several/JJ
years/NNS
ago/IN
continued/VBD
to/TO
be/VB
fueled/VBN
by/IN
growth/NN
in/IN
consumer/NN
loans/NNS
,/,
higher/JJR
interest/NN
margins/NNS
and/CC
negligible/JJ
loan/NN
losses/NNS
./.
For/IN
the/DT
quarter/NN
,/,
BankAmerica/NNP
said/VBD
it/PRP
earned/VBD
$/$
254/CD
million/CD
,/,
or/CC
$/$
1.16/CD
a/DT
share/NN
,/,
compared/VBN
with/IN
$/$
190/CD
million/CD
,/,
or/CC
97/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
BankAmerica/NNP
spokesmen/NNS
said/VBD
preliminary/JJ
reports/NNS
indicate/VBP
the/DT
company/NN
was/VBD
n't/RB
materially/RB
affected/VBN
by/IN
the/DT
Tuesday/NNP
earthquake/NN
./.
All/DT
but/CC
eight/CD
of/IN
the/DT
850/CD
branches/NNS
,/,
which/WDT
had/VBD
some/DT
structural/JJ
damage/NN
,/,
reopened/VBN
yesterday/NN
for/IN
business/NN
./.
Automated/VBN
teller/NN
machine/NN
operations/NNS
also/RB
were/VBD
up/IN
and/CC
operating/VBG
yesterday/NN
,/,
a/DT
bank/NN
spokesman/NN
said/VBD
./.
For/IN
the/DT
first/JJ
time/NN
in/IN
nearly/RB
two/CD
years/NNS
,/,
BankAmerica/NNP
results/NNS
failed/VBD
to/TO
improve/VB
in/IN
consecutive/JJ
quarters/NNS
,/,
but/CC
the/DT
decline/NN
from/IN
the/DT
second/JJ
quarter/NN
was/VBD
attributable/JJ
to/TO
special/JJ
factors/NNS
./.
Third-quarter/JJ
profit/NN
was/VBD
16/CD
%/NN
below/IN
the/DT
$/$
304/CD
million/CD
,/,
or/CC
$/$
1.50/CD
a/DT
share/NN
,/,
earned/VBN
in/IN
the/DT
1989/CD
second/JJ
quarter/NN
./.
The/DT
company/NN
cited/VBD
higher/JJR
tax/NN
credits/NNS
in/IN
the/DT
second/JJ
quarter/NN
,/,
totaling/VBG
$/$
63/CD
million/CD
,/,
compared/VBN
with/IN
$/$
28/CD
million/CD
in/IN
the/DT
third/JJ
quarter/NN
./.
Excluding/VBG
tax/NN
credits/NNS
,/,
profit/NN
was/VBD
6/CD
%/NN
below/IN
the/DT
second/JJ
quarter/NN
./.
But/CC
that/DT
drop/NN
was/VBD
caused/VBN
entirely/RB
by/IN
a/DT
decline/NN
in/IN
Brazilian/JJ
interest/NN
paid/VBN
,/,
to/TO
$/$
5/CD
million/CD
from/IN
$/$
54/CD
million/CD
the/DT
second/JJ
quarter/NN
./.
Moreover/RB
,/,
BankAmerica/NNP
continued/VBD
to/TO
build/VB
its/PRP$
reserve/NN
against/IN
troubled/VBN
foreign/JJ
loans/NNS
by/IN
boosting/VBG
its/PRP$
loan-loss/NN
provision/NN
to/TO
$/$
170/CD
million/CD
,/,
about/IN
the/DT
same/JJ
as/IN
the/DT
previous/JJ
quarter/NN
but/CC
well/RB
above/IN
the/DT
$/$
100/CD
million/CD
in/IN
the/DT
year-earlier/JJ
quarter/NN
./.
The/DT
provision/NN
rate/NN
was/VBD
far/RB
above/IN
BankAmerica/NNP
's/POS
actual/JJ
net/JJ
credit/NN
losses/NNS
of/IN
$/$
24/CD
million/CD
in/IN
the/DT
third/JJ
quarter/NN
,/,
compared/VBN
with/IN
$/$
18/CD
million/CD
in/IN
the/DT
second/JJ
period/NN
and/CC
$/$
38/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
As/IN
a/DT
result/NN
,/,
BankAmerica/NNP
said/VBD
its/PRP$
reserve/NN
against/IN
troubled/VBN
foreign-country/JJ
loans/NNS
,/,
once/RB
below/IN
25/CD
%/NN
,/,
now/RB
amounts/VBZ
to/TO
45/CD
%/NN
of/IN
the/DT
$/$
6.4/CD
billion/CD
of/IN
non-trade/JJ
debt/NN
it/PRP
calculates/VBZ
it/PRP
is/VBZ
owed/VBN
by/IN
those/DT
nations/NNS
./.
That/DT
level/NN
is/VBZ
about/IN
the/DT
same/JJ
as/IN
some/DT
other/JJ
big/JJ
banks/NNS
,/,
but/CC
far/RB
below/IN
the/DT
85/CD
%/NN
and/CC
100/CD
%/JJ
reserves/NNS
of/IN
Bankers/NNPS
Trust/NNP
New/NNP
York/NNP
Corp./NNP
and/CC
J.P./NNP
Morgan/NNP
&/CC
Co./NNP
,/,
respectively/RB
./.
By/IN
any/DT
measure/NN
,/,
third-quarter/JJ
earnings/NNS
were/VBD
still/RB
robust/JJ
,/,
equivalent/JJ
to/TO
a/DT
0.92/CD
%/NN
return/NN
on/IN
assets/NNS
even/RB
excluding/VBG
tax/NN
credits/NNS
./.
By/IN
that/DT
key/JJ
measure/NN
of/IN
operating/VBG
efficiency/NN
,/,
BankAmerica/NNP
turned/VBD
in/IN
a/DT
better/JJR
performance/NN
than/IN
its/PRP$
well-regarded/JJ
Los/NNP
Angeles-based/JJ
competitor/NN
,/,
Security/NNP
Pacific/NNP
Corp./NNP
,/,
which/WDT
posted/VBD
a/DT
0.89/CD
%/NN
return/NN
in/IN
the/DT
third/JJ
quarter/NN
./.
But/CC
it/PRP
continued/VBD
to/TO
badly/RB
trail/VB
its/PRP$
San/NNP
Francisco/NNP
neighbor/NN
,/,
Wells/NNP
Fargo/NNP
&/CC
Co./NNP
,/,
which/WDT
reported/VBD
an/DT
extraordinary/JJ
1.25/CD
%/NN
return/NN
on/IN
assets/NNS
./.
Both/DT
returns/NNS
do/VBP
n't/RB
include/VB
any/DT
tax/NN
credits/NNS
./.
``/``
They/PRP
BankAmerica/NNP
good/JJ
performance/NN
,/,
''/''
said/VBD
Donald/NNP
K./NNP
Crowley/NNP
,/,
an/DT
analyst/NN
with/IN
Keefe/NNP
,/,
Bruyette/NNP
&/CC
Woods/NNP
Inc./NNP
,/,
San/NNP
Francisco/NNP
./.
In/IN
composite/JJ
trading/NN
yesterday/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
BankAmerica/NNP
common/JJ
stock/NN
edged/VBD
up/IN
12.5/CD
cents/NNS
to/TO
close/VB
at/IN
$/$
32/CD
a/DT
share/NN
./.
Shareholder/NN
equity/NN
improved/VBD
to/TO
4.68/CD
%/NN
from/IN
4.23/CD
%/NN
in/IN
the/DT
previous/JJ
quarter/NN
./.
The/DT
4.52/CD
%/NN
net/JJ
interest/NN
margin/NN
,/,
or/CC
the/DT
difference/NN
between/IN
the/DT
yield/NN
on/IN
a/DT
bank/NN
's/POS
investments/NNS
and/CC
the/DT
rate/NN
it/PRP
pays/VBZ
for/IN
deposits/NNS
and/CC
other/JJ
borrowings/NNS
,/,
was/VBD
still/RB
markedly/RB
higher/JJR
than/IN
the/DT
3.91/CD
%/NN
ratio/NN
a/DT
year/NN
earlier/RBR
,/,

and/CC
is/VBZ
among/IN
the/DT
best/JJS
in/IN
the/DT
industry/NN
,/,
analysts/NNS
said/VBD
./.
The/DT
high/JJ
margin/NN
partly/RB
stems/VBZ
from/IN
continued/VBN
strong/JJ
growth/NN
in/IN
high-yielding/JJ
consumer/NN
loans/NNS
,/,
which/WDT
jumped/VBD
31/CD
%/NN
to/TO
$/$
17.47/CD
billion/CD
from/IN
a/DT
year/NN
earlier/RBR
,/,
and/CC
residential/JJ
mortgages/NNS
,/,
which/WDT
rose/VBD
25/CD
%/NN
to/TO
$/$
12/CD
billion/CD
./.
BankAmerica/NNP
's/POS
total/JJ
loans/NNS
rose/VBD
8/CD
%/NN
to/TO
$/$
71.36/CD
billion/CD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
BankAmerica/NNP
profit/NN
soared/VBD
81/CD
%/NN
to/TO
$/$
833/CD
million/CD
,/,
or/CC
$/$
4.07/CD
a/DT
share/NN
,/,
from/IN
$/$
461/CD
million/CD
,/,
or/CC
$/$
2.40/CD
a/DT
share/NN
./.
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
will/MD
announce/VB
on/IN
Tuesday/NNP
a/DT
slew/NN
of/IN
software/NN
products/NNS
aimed/VBN
at/IN
eliminating/VBG
some/DT
of/IN
the/DT
major/JJ
problems/NNS
involved/VBN
in/IN
computerizing/VBG
manufacturing/VBG
operations/NNS
,/,
industry/NN
executives/NNS
said/VBD
./.
Many/JJ
plant/NN
floors/NNS
currently/RB
resemble/VBP
a/DT
Tower/NNP
of/IN
Babel/NNP
,/,
with/IN
computers/NNS
,/,
robots/NNS
and/CC
machine/NN
tools/NNS
that/WDT
generally/RB
speak/VBP
their/PRP$
own/JJ
language/NN
and/CC
have/VBP
trouble/NN
talking/VBG
to/TO
each/DT
other/JJ
./.
As/IN
a/DT
result/NN
,/,
if/IN
a/DT
problem/NN
develops/VBZ
on/IN
a/DT
production/NN
line/NN
,/,
it/PRP
is/VBZ
unlikely/RB
some/DT
supervisor/NN
sitting/VBG
in/IN
front/NN
of/IN
a/DT
personal/JJ
computer/NN
or/CC
workstation/NN
will/MD
know/VB
about/IN
it/PRP
or/CC
be/VB
able/JJ
to/TO
correct/VB
it/PRP
./.
So/IN
IBM/NNP
will/MD
be/VB
announcing/VBG
more/RBR
than/IN
50/CD
products/NNS
that/WDT
will/MD
be/VB
aimed/VBN
at/IN
letting/VBG
even/RB
the/DT
dumbest/JJS
machine/NN
tool/NN
talk/NN
to/TO
the/DT
smartest/JJS
mainframe/NN
,/,
or/CC
anything/NN
in/IN
between/IN
./.
In/IN
an/DT
unusual/JJ
display/NN
of/IN
openness/NN
,/,
IBM/NNP
also/RB
will/MD
be/VB
helping/VBG
customers/NNS
tie/VB
together/RB
operations/NNS
that/WDT
include/VBP
lots/NNS
of/IN
equipment/NN
made/VBN
by/IN
IBM/NNP
's/POS
competitors/NNS
./.
In/IN
addition/NN
,/,
the/DT
executives/NNS
said/VBD
IBM/NNP
will/MD
be/VB
offering/VBG
programming/NN
tools/NNS
designed/VBN
to/TO
let/VB
anyone/NN
working/VBG
on/IN
a/DT
factory/NN
floor/NN
write/VB
ad-hoc/JJ
software/NN
,/,
for/IN
instance/NN
,/,
to/TO
do/VB
statistical/JJ
analysis/NN
that/WDT
would/MD
pinpoint/VB
a/DT
problem/NN
on/IN
a/DT
manufacturing/VBG
line/NN
./.
In/IN
Armonk/NNP
,/,
N.Y./NNP
,/,
an/DT
IBM/NNP
spokeswoman/NN
confirmed/VBD
that/IN
IBM/NNP
executives/NNS
will/MD
be/VB
announcing/VBG
some/DT
computer-integrated-manufacturing/JJ
plans/NNS
next/IN
week/NN
but/CC
declined/VBD
to/TO
elaborate/VB
./.
The/DT
industry/NN
executives/NNS
said/VBD
that/IN
,/,
as/IN
usual/JJ
with/IN
such/JJ
broad/JJ
announcements/NNS
from/IN
IBM/NNP
,/,
this/DT
one/CD
will/MD
be/VB
part/NN
reality/NN
and/CC
part/NN
strategy/NN
./.
So/RB
it/PRP
will/MD
take/VB
many/JJ
quarters/NNS
for/IN
IBM/NNP
to/TO
roll/VB
out/IN
all/PDT
the/DT
products/NNS
that/IN
customers/NNS
need/VBP
,/,
and/CC
it/PRP
will/MD
take/VB
years/NNS
for/IN
customers/NNS
to/TO
integrate/VB
the/DT
products/NNS
into/IN
their/PRP$
operations/NNS
./.
Also/RB
as/IN
usual/JJ
,/,
the/DT
products/NNS
will/MD
appeal/VB
mostly/RB
to/TO
heavy/JJ
users/NNS
of/IN
IBM/NNP
equipment/NN
,/,
at/IN
least/JJS
initially/RB
./.
Still/RB
,/,
consultants/NNS
and/CC
industry/NN
executives/NNS
said/VBD
the/DT
products/NNS
could/MD
help/VB
make/VB
manufacturing/VBG
operations/NNS
more/RBR
efficient/JJ
,/,
and/CC
provide/VB
a/DT
boost/NN
to/TO
the/DT
computer-integrated-manufacturing/JJ
market/NN
--/:
a/DT
market/NN
that/IN
Yankee/NNP
Group/NNP
,/,
a/DT
research/NN
firm/NN
,/,
has/VBZ
said/VBN
may/MD
double/VB
to/TO
$/$
40/CD
billion/CD
by/IN
1993/CD
./.
``/``
This/DT
is/VBZ
a/DT
step/NN
in/IN
the/DT
right/JJ
direction/NN
,/,
''/''
said/VBD
Martin/NNP
Piszczalski/NNP
,/,
a/DT
Yankee/NNP
Group/NNP
analyst/NN
./.
He/PRP
added/VBD
,/,
though/RB
,/,
that/IN
``/``
a/DT
lot/NN
of/IN
this/DT
is/VBZ
intentions/NNS
.../:
./.
We/PRP
'll/MD
have/VB
to/TO
wait/VB
and/CC
see/VB
''/''
how/WRB
the/DT
plan/NN
develops/VBZ
./.
The/DT
announcements/NNS
also/RB
should/MD
help/VB
IBM/NNP
go/VB
on/IN
the/DT
offensive/NN
against/IN
Digital/NNP
Equipment/NNP
Corp./NNP
on/IN
the/DT
plant/NN
floor/NN
./.
While/IN
IBM/NNP
has/VBZ
traditionally/RB
dominated/VBN
the/DT
market/NN
for/IN
computers/NNS
on/IN
the/DT
business/NN
side/NN
of/IN
manufacturing/VBG
operations/NNS
and/CC
has/VBZ
done/VBN
well/RB
in/IN
the/DT
market/NN
for/IN
design/NN
tools/NNS
,/,
Digital/NNP
has/VBZ
dominated/VBN
computerized/JJ
manufacturing/NN
./.
Hewlett-Packard/NNP
Co./NNP
also/RB
has/VBZ
begun/VBN
to/TO
gain/VB
share/NN
in/IN
the/DT
whole/JJ
computer-integrated-manufacturing/JJ
arena/NN
./.
IBM/NNP
will/MD
face/VB
an/DT
uphill/JJ
climb/NN
against/IN
Digital/NNP
,/,
given/VBN
Digital/NNP
's/POS
reputation/NN
for/IN
being/VBG
better/JJR
than/IN
IBM/NNP
at/IN
hooking/VBG
together/RB
different/JJ
manufacturers/NNS
'/POS
computers/NNS
./.
In/IN
addition/NN
,/,
Hewlett-Packard/NNP
,/,
while/IN
a/DT
much/JJ
smaller/JJR
player/NN
,/,
has/VBZ
made/VBN
a/DT
big/JJ
commitment/NN
to/TO
the/DT
sorts/NNS
of/IN
industry/NN
standards/NNS
that/WDT
facilitate/VBP
those/DT
hookups/NNS
and/CC
could/MD
give/VB
IBM/NNP
some/DT
problems/NNS
./.
Both/DT
can/MD
be/VB
expected/VBN
to/TO
go/VB
after/IN
the/DT
market/NN
aggressively/RB
:/:
Gartner/NNP
Group/NNP
Inc./NNP
,/,
a/DT
research/NN
firm/NN
,/,
estimated/VBD
the/DT
Digital/NNP
gets/VBZ
30/CD
%/NN
of/IN
its/PRP$
revenue/NN
from/IN
the/DT
manufacturing/VBG
market/NN
,/,
and/CC
Hewlett-Packard/NNP
gets/VBZ
50/CD
%/NN
./.
IBM/NNP
,/,
which/WDT
Gartner/NNP
Group/NNP
said/VBD
generates/VBZ
22/CD
%/NN
of/IN
its/PRP$
revenue/NN
in/IN
this/DT
market/NN
,/,
should/MD
be/VB
able/JJ
to/TO
take/VB
advantage/NN
of/IN
its/PRP$
loyal/JJ
following/NN
among/IN
buyers/NNS
of/IN
equipment/NN
./.
That/DT
is/VBZ
because/IN
many/JJ
companies/NNS
will/MD
standardize/VB
on/IN
certain/JJ
types/NNS
of/IN
equipment/NN
as/IN
the/DT
various/JJ
parts/NNS
of/IN
the/DT
manufacturing/VBG
market/NN
merge/VBP
,/,
and/CC
IBM/NNP
is/VBZ
the/DT
biggest/JJS
player/NN
./.
But/CC
much/RB
will/MD
depend/VB
on/IN
how/WRB
quickly/RB
IBM/NNP
can/MD
move/VB
./.
The/DT
whole/JJ
idea/NN
of/IN
computer-integrated/JJ
manufacturing/NN
,/,
CIM/NNP
,/,
seems/VBZ
to/TO
be/VB
making/VBG
a/DT
comeback/NN
after/IN
losing/VBG
a/DT
little/JJ
luster/NN
over/IN
the/DT
past/JJ
couple/NN
of/IN
years/NNS
when/WRB
it/PRP
became/VBD
apparent/JJ
that/IN
it/PRP
was/VBD
n't/RB
a/DT
panacea/NN
that/WDT
would/MD
make/VB
U.S./NNP
plants/NNS
more/RBR
efficient/JJ
and/CC
banish/VB
foreign/JJ
competition/NN
./.
Erik/NNP
Keller/NNP
,/,
a/DT
Gartner/NNP
Group/NNP
analyst/NN
,/,
said/VBD
organizational/JJ
changes/NNS
may/MD
still/RB
be/VB
required/VBN
to/TO
really/RB
take/VB
advantage/NN
of/IN
CIM/NNP
's/POS
capabilities/NNS
--/:
someone/NN
on/IN
the/DT
shop/NN
floor/NN
may/MD
not/RB
like/VB
having/VBG
someone/NN
in/IN
an/DT
office/NN
using/VBG
a/DT
personal/JJ
computer/NN
to/TO
look/VB
over/IN
his/PRP$
shoulder/NN
,/,
for/IN
instance/NN
,/,
and/CC
may/MD
be/VB
able/JJ
to/TO
prevent/VB
that/IN
from/IN
happening/VBG
./.
But/CC
he/PRP
said/VBD
a/DT
system/NN
such/JJ
as/IN
IBM/NNP
's/POS
should/MD
help/VB
significantly/RB
./.
In/IN
making/VBG
polyethylene/NN
sheets/NNS
out/IN
of/IN
plastic/JJ
chips/NNS
,/,
for/IN
instance/NN
,/,
a/DT
chip/NN
sometimes/RB
does/VBZ
n't/RB
melt/VB
,/,
gets/VBZ
caught/VBN
in/IN
the/DT
machinery/NN
and/CC
creates/VBZ
a/DT
run/NN
in/IN
the/DT
sheets/NNS
./.
That/DT
can/MD
be/VB
expensive/JJ
,/,
because/IN
the/DT
problem/NN
may/MD
not/RB
be/VB
noticed/VBN
for/IN
a/DT
while/NN
,/,
and/CC
the/DT
sheets/NNS
are/VBP
typically/RB
thrown/VBN
away/RB
./.
But/CC
Mr./NNP
Keller/NNP
said/VBD
that/IN
,/,
if/IN
computers/NNS
can/MD
be/VB
integrated/VBN
into/IN
the/DT
process/NN
,/,
they/PRP
could/MD
alert/VB
an/DT
operator/NN
as/RB
soon/RB
as/IN
the/DT
problem/NN
occurred/VBD
./.
They/PRP
could/MD
also/RB
check/VB
through/IN
the/DT
orders/NNS
on/IN
file/NN
to/TO
find/VB
a/DT
customer/NN
that/WDT
was/VBD
willing/JJ
to/TO
accept/VB
a/DT
lower/JJR
grade/NN
of/IN
polyethylene/NN
./.
The/DT
computer/NN
would/MD
let/VB
the/DT
machine/NN
run/VB
just/RB
until/IN
that/DT
order/NN
was/VBD
filled/VBN
,/,
eliminating/VBG
waste/NN
./.
This/DT
sort/NN
of/IN
improved/VBN
link/NN
figures/NNS
to/TO
eventually/RB
become/VB
a/DT
significant/JJ
weapon/NN
for/IN
some/DT
companies/NNS
./.
Companies/NNS
might/MD
be/VB
able/JJ
to/TO
tell/VB
salespeople/NN
daily/RB
,/,
for/IN
instance/NN
,/,
about/IN
idle/JJ
equipment/NN
,/,
so/IN
they/PRP
could/MD
offer/VB
discounts/NNS
on/IN
whatever/WDT
that/DT
equipment/NN
produces/VBZ
./.
Salespeople/NNS
also/RB
could/MD
get/VB
a/DT
precise/JJ
reading/NN
on/IN
when/WRB
products/NNS
could/MD
be/VB
delivered/VBN
--/:
in/IN
much/RB
the/DT
same/JJ
way/NN
that/IN
Federal/NNP
Express/NNP
has/VBZ
marketed/VBN
its/PRP$
ability/NN
to/TO
tell/VB
exactly/RB
where/WRB
a/DT
package/NN
is/VBZ
in/IN
the/DT
delivery/NN
system/NN
./.
Ford/NNP
Motor/NNP
Co./NNP
's/POS
Merkur/NNP
,/,
the/DT
company/NN
's/POS
first/JJ
new/JJ
car/NN
franchise/NN
in/IN
the/DT
U.S./NNP
since/IN
the/DT
Edsel/NNP
was/VBD
unveiled/VBN
in/IN
1957/CD
,/,
now/RB
will/MD
share/VB
Edsel/NNP
's/POS
fate/NN
./.
Ford/NNP
said/VBD
yesterday/NN
it/PRP
will/MD
halt/VB
imports/NNS
of/IN
the/DT
Merkur/NNP
Scorpio/NNP
,/,
a/DT
$/$
28,000/CD
luxury/NN
sedan/NN
built/VBN
by/IN
Ford/NNP
of/IN
Europe/NNP
in/IN
West/NNP
Germany/NNP
./.
The/DT
cars/NNS
are/VBP
sold/VBN
under/IN
a/DT
separate/JJ
franchise/NN
with/IN
its/PRP$
own/JJ
sign/NN
in/IN
front/NN
of/IN
Lincoln-Mercury/NNP
dealers/NNS
--/:
as/IN
opposed/VBN
to/TO
new/JJ
models/NNS
such/JJ
as/IN
Taurus/NNP
or/CC
Escort/NNP
,/,
which/WDT
are/VBP
sold/VBN
under/IN
existing/VBG
Ford/NNP
divisions/NNS
./.
The/DT
move/NN
to/TO
halt/VB
imports/NNS
--/:
announced/VBD
29/CD
years/NNS
and/CC
11/CD
months/NNS
to/TO
the/DT
day/NN
after/IN
Henry/NNP
Ford/NNP
II/NNP
declared/VBD
that/IN
the/DT
Edsel/NNP
division/NN
and/CC
its/PRP$
gawky/JJ
car/NN
would/MD
be/VB
scrapped/VBN
--/:
kills/VBZ
the/DT
four-year-old/JJ
Merkur/NNP
brand/NN
in/IN
the/DT
U.S./NNP
market/NN
./.
It/PRP
will/MD
continue/VB
to/TO
be/VB
sold/VBN
in/IN
the/DT
European/JJ
market/NN
./.
Merkur/NNP
's/POS
death/NN
is/VBZ
n't/RB
nearly/RB
as/RB
costly/JJ
to/TO
Ford/NNP
as/IN
was/VBD
the/DT
Edsel/NNP
debacle/NN
,/,
because/IN
Merkur/NNP
was/VBD
a/DT
relatively/RB
low-budget/JJ
project/NN
with/IN
limited/VBN
sales/NNS
goals/NNS
./.
Still/RB
,/,
Merkur/NNP
's/POS
demise/NN
is/VBZ
a/DT
setback/NN
for/IN
Ford/NNP
at/IN
a/DT
time/NN
when/WRB
the/DT
company/NN
's/POS
image/NN
as/IN
the/DT
U.S./NNP
auto/NN
maker/NN
with/IN
the/DT
golden/JJ
touch/NN
is/VBZ
showing/VBG
signs/NNS
of/IN
strain/NN
./.
The/DT
No./NN
2/CD
auto/NN
maker/NN
's/POS
new/JJ
Thunderbird/NNP
and/CC
Mercury/NNP
Cougar/NNP
models/NNS
have/VBP
n't/RB
met/VBN
sales/NNS
expectations/NNS
in/IN
the/DT
year/NN
since/IN
they/PRP
were/VBD
introduced/VBN
,/,
and/CC
Ford/NNP
's/POS
trucks/NNS
are/VBP
losing/VBG
ground/NN
to/TO
their/PRP$
GM/NNP
rivals/NNS
./.
This/DT
fall/NN
,/,
Ford/NNP
introduced/VBD
only/RB
one/CD
new/JJ
product/NN
:/:
A/DT
restyled/VBN
version/NN
of/IN
its/PRP$
hulking/VBG
Lincoln/NNP
Town/NNP
Car/NNP
luxury/NN
model/NN
./.
The/DT
demise/NN
of/IN
Merkur/NNP
mare-COOR/NNP
a/DT
September/NNP
in/IN
which/WDT
670/CD
Merkur/NNP
dealers/NNS
managed/VBD
to/TO
sell/VB
only/RB
93/CD
Scorpios/NNPS
./.
Total/NNP
Merkur/NNP
sales/NNS
for/IN
the/DT
first/JJ
nine/CD
months/NNS
dropped/VBD
46/CD
%/NN
from/IN
a/DT
year/NN
ago/IN
to/TO
just/RB
6,320/CD
cars/NNS
./.
Merkur/NNP
is/VBZ
n't/RB
the/DT
only/JJ
European/JJ
luxury/NN
brand/NN
having/VBG
problems/NNS
in/IN
the/DT
U.S/NNP
./.
The/DT
Japanese/JJ
assault/NN
on/IN
the/DT
luxury/NN
market/NN
is/VBZ
rapidly/RB
overshadowing/VBG
such/JJ
European/JJ
makes/NNS
as/IN
Audi/NNP
and/CC
Saab/NNP
,/,
which/WDT
at/IN
least/JJS
have/VBP
clear/JJ
brand/NN
images/NNS
./.
Merkur/NNP
,/,
as/IN
an/DT
import/NN
on/IN
domestic/JJ
car/NN
lots/NNS
,/,
suffered/VBD
from/IN
the/DT
same/JJ
sort/NN
of/IN
image/NN
confusion/NN
that/WDT
is/VBZ
hobbling/VBG
sales/NNS
of/IN
imports/NNS
at/IN
General/NNP
Motors/NNPS
Corp./NNP
and/CC
Chrysler/NNP
Corp/NNP
./.
Merkur/NNP
was/VBD
originally/RB
aimed/VBN
at/IN
enticing/VBG
into/IN
Lincoln-Mercury/NNP
dealerships/NNS
the/DT
kind/NN
of/IN
young/JJ
,/,
affluent/JJ
buyers/NNS
who/WP
would/MD
n't/RB
be/VB
caught/VBN
dead/JJ
in/IN
a/DT
Town/NNP
Car/NNP
--/:
a/DT
vehicle/NN
so/RB
bargelike/JJ
that/IN
Ford/NNP
is/VBZ
staging/VBG
a/DT
press/NN
event/NN
next/IN
month/NN
linking/VBG
the/DT
Town/NNP
Car/NNP
's/POS
launch/NN
to/TO
the/DT
commissioning/VBG
of/IN
a/DT
new/JJ
aircraft/NN
carrier/NN
in/IN
Norfolk/NNP
,/,
Va/NNP
./.
But/CC
the/DT
brand/NN
had/VBD
trouble/NN
from/IN
the/DT
start/NN
./.
The/DT
first/JJ
Merkur/NNP
,/,
the/DT
XR4Ti/NNP
,/,
went/VBD
on/IN
sale/NN
in/IN
early/JJ
1985/CD
./.
The/DT
sporty/JJ
coupe/NN
foundered/VBD
in/IN
part/NN
because/IN
American/JJ
buyers/NNS
did/VBD
n't/RB
go/VB
for/IN
the/DT
car/NN
's/POS
unusual/JJ
double-wing/JJ
rear/JJ
spoiler/NN
./.
In/IN
May/NNP
1987/CD
,/,
Ford/NNP
began/VBD
importing/VBG
the/DT
Scorpio/NNP
sedan/NN
from/IN
West/NNP
Germany/NNP
to/TO
sell/VB
next/JJ
to/TO
a/DT
redesigned/VBN
XR4Ti/NNP
in/IN
showrooms/NNS
./.
Ford/NNP
officials/NNS
said/VBD
they/PRP
expected/VBD
the/DT
two/CD
Merkurs/NNPS
would/MD
sell/VB
about/IN
15,000/CD
cars/NNS
a/DT
year/NN
,/,
and/CC
in/IN
1988/CD
they/PRP
reached/VBD
that/DT
goal/NN
,/,
as/IN
sales/NNS
hit/VBD
15,261/CD
cars/NNS
./.
It/PRP
was/VBD
downhill/RB
from/IN
there/EX
,/,
however/RB
./.
One/CD
major/JJ
factor/NN
was/VBD
the/DT
decline/NN
of/IN
the/DT
dollar/NN
against/IN
the/DT
mark/NN
,/,
which/WDT
began/VBD
less/JJR
than/IN
a/DT
year/NN
after/IN
Merkur/NNP
's/POS
1985/CD
launch/NN
./.
As/IN
the/DT
West/NNP
German/NNP
currency/NN
rose/VBD
,/,
so/RB
did/VBD
Merkur/NNP
prices/NNS
./.
The/DT
Merkur/NNP
cars/NNS
also/RB
suffered/VBD
from/IN
spotty/JJ
quality/NN
,/,
some/DT
dealers/NNS
say/VBP
./.
``/``
It/PRP
was/VBD
like/IN
a/DT
comedy/NN
of/IN
errors/NNS
,/,
''/''
says/VBZ
Martin/NNP
J./NNP
``/``
Hoot/NNP
''/''
McInerney/NNP
,/,
a/DT
big/JJ
dealer/NN
whose/WP$
Star/NNP
Lincoln-Mercury-Merkur/NNP
operation/NN
in/IN
Southfield/NNP
,/,
Mich./NNP
,/,
sold/VBD
more/JJR
XR4Ti/NNP
's/VBZ

than/IN
any/DT
other/JJ
dealership/NN
./.
But/CC
by/IN
the/DT
third/JJ
quarter/NN
of/IN
1988/CD
,/,
Scorpios/NNPS
had/VBD
a/DT
high/JJ
satisfaction/NN
rating/NN
in/IN
internal/JJ
Ford/NNP
studies/NNS
,/,
a/DT
spokesman/NN
said/VBD
./.
Apparently/RB
,/,
however/RB
,/,
the/DT
improvement/NN
came/VBD
too/RB
late/JJ
./.
Last/JJ
fall/NN
,/,
Ford/NNP
announced/VBD
it/PRP
would/MD
discontinue/VB
the/DT
XR4Ti/NNP
in/IN
the/DT
U.S./NNP
at/IN
the/DT
end/NN
of/IN
the/DT
1989/CD
model/NN
year/NN
./.
Ford/NNP
said/VBD
then/RB
it/PRP
would/MD
keep/VB
the/DT
Scorpio/NNP
./.
This/DT
year/NN
,/,
Scorpio/NNP
sales/NNS
plummeted/VBD
,/,
and/CC
at/IN
the/DT
current/JJ
sales/NNS
pace/NN
it/PRP
would/MD
take/VB
Ford/NNP
242/CD
days/NNS
to/TO
sell/VB
off/IN
the/DT
current/JJ
Scorpio/NNP
inventory/NN
of/IN
about/IN
4,600/CD
cars/NNS
./.
Canadian/NNP
Pacific/NNP
Ltd./NNP
said/VBD
it/PRP
proposed/VBD
acquiring/VBG
the/DT
44/CD
%/NN
of/IN
Soo/NNP
Line/NNP
Corp./NNP
it/PRP
does/VBZ
n't/RB
already/RB
own/JJ
for/IN
$/$
19.50/CD
a/DT
share/NN
,/,
or/CC
about/IN
$/$
81.9/CD
million/CD
,/,
after/IN
failing/VBG
to/TO
find/VB
a/DT
buyer/NN
for/IN
its/PRP$
majority/NN
stake/NN
earlier/RBR
this/DT
year/NN
./.
Soo/NNP
Line/NNP
said/VBD
its/PRP$
board/NN
appointed/VBD
a/DT
special/JJ
committee/NN
of/IN
independent/JJ
directors/NNS
to/TO
study/VB
the/DT
proposal/NN
./.
The/DT
troubled/VBN
Minneapolis-based/JJ
railroad/NN
concern/NN
said/VBD
the/DT
committee/NN
has/VBZ
the/DT
authority/NN
to/TO
hire/VB
financial/JJ
and/CC
legal/JJ
advisers/NNS
to/TO
assist/VB
it/PRP
./.
The/DT
proposed/VBN
acquisition/NN
will/MD
be/VB
subject/JJ
to/TO
approval/NN
by/IN
the/DT
Interstate/NNP
Commerce/NNP
Commission/NNP
,/,
Soo/NNP
Line/NNP
said/VBD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
Soo/NNP
Line/NNP
shares/NNS
jumped/VBD
well/RB
above/IN
the/DT
proposed/VBN
price/NN
,/,
closing/VBG
at/IN
$/$
20.25/CD
,/,
up/IN
$/$
2.75/CD
./.
Canadian/NNP
Pacific/NNP
put/VBD
its/PRP$
56/CD
%/NN
stake/NN
in/IN
Soo/NNP
Line/NNP
up/IN
for/IN
sale/NN
last/JJ
year/NN
but/CC
could/MD
n't/RB
find/VB
any/DT
takers/NNS
./.
Canadian/NNP
Pacific/NNP
,/,
which/WDT
has/VBZ
interests/NNS
in/IN
transportation/NN
,/,
telecommunications/NNS
,/,
forest/NN
products/NNS
,/,
energy/NN
and/CC
real/JJ
estate/NN
,/,
finally/RB
took/VBD
its/PRP$
majority/NN
block/NN
off/IN
the/DT
market/NN
this/DT
spring/NN
./.
``/``
It/PRP
turned/VBD
out/IN
we/PRP
could/MD
n't/RB
sell/VB
it/PRP
,/,
''/''
a/DT
Canadian/NNP
Pacific/NNP
official/NN
said/VBD
,/,
adding/VBG
that/IN
acquiring/VBG
the/DT
remainder/NN
of/IN
Soo/NNP
Line/NNP
is/VBZ
now/RB
``/``
the/DT
best/JJS
way/NN
to/TO
rationalize/VB
operations/NNS
./.
''/''
Canadian/NNP
Pacific/NNP
is/VBZ
Soo/NNP
Line/NNP
's/POS
biggest/JJS
customer/NN
and/CC
has/VBZ
owned/VBN
a/DT
majority/NN
stake/NN
in/IN
the/DT
U.S./NNP
railroad/NN
since/IN
1947/CD
./.
Canadian/NNP
Pacific/NNP
and/CC
Soo/NNP
Line/NNP
tracks/NNS
connect/VBP
at/IN
two/CD
points/NNS
in/IN
the/DT
West/NN
on/IN
the/DT
Canada-U.S./NNP
border/NN
and/CC
the/DT
two/CD
companies/NNS
operate/VBP
a/DT
very/RB
successful/JJ
Chicago-Montreal/NNP
rail/NN
service/NN
./.
Separately/RB
,/,
for/IN
the/DT
first/JJ
nine/CD
months/NNS
,/,
Soo/NNP
Line/NNP
reported/VBD
a/DT
loss/NN
of/IN
$/$
398,000/CD
,/,
or/CC
four/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
net/JJ
income/NN
of/IN
$/$
12.5/CD
million/CD
,/,
or/CC
$/$
1.32/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Revenue/NN
fell/VBD
5.8/CD
%/NN
to/TO
$/$
407.9/CD
million/CD
from/IN
$/$
433.2/CD
million/CD
./.
The/DT
company/NN
had/VBD
a/DT
loss/NN
from/IN
operations/NNS
of/IN
$/$
1.7/CD
million/CD
./.
Golden/NNP
Nugget/NNP
Inc./NNP
reported/VBD
a/DT
third-quarter/JJ
net/JJ
loss/NN
of/IN
$/$
13.1/CD
million/CD
,/,
or/CC
76/CD
cents/NNS
a/DT
share/NN
,/,
based/VBN
on/IN
17.2/CD
million/CD
common/JJ
shares/NNS
and/CC
dilutive/JJ
equivalents/NNS
outstanding/JJ
./.
The/DT
results/NNS
compare/VBP
with/IN
a/DT
year-earlier/JJ
net/JJ
loss/NN
of/IN
$/$
1.5/CD
million/CD
,/,
or/CC
seven/CD
cents/NNS
a/DT
share/NN
,/,
based/VBN
on/IN
20.3/CD
million/CD
common/JJ
and/CC
dilutive/JJ
equivalents/NNS
outstanding/JJ
./.
Operating/VBG
revenue/NN
rose/VBD
25/CD
%/NN
to/TO
$/$
52.1/CD
million/CD
from/IN
$/$
41.8/CD
million/CD
a/DT
year/NN
ago/IN
./.
Results/NNS
for/IN
the/DT
latest/JJS
quarter/NN
include/VBP
nonoperating/VBG
items/NNS
of/IN
$/$
23.9/CD
million/CD
,/,
versus/CC
$/$
8.4/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
Most/JJS
of/IN
the/DT
expenses/NNS
stem/VBP
from/IN
the/DT
company/NN
's/POS
huge/JJ
Mirage/NNP
resort-casino/NN
scheduled/VBN
to/TO
open/VB
next/JJ
month/NN
along/IN
the/DT
Strip/NNP
,/,
and/CC
an/DT
April/NNP
1989/CD
financing/NN
by/IN
units/NNS
operating/VBG
the/DT
downtown/NN
Golden/NNP
Nugget/NNP
property/NN
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Golden/NNP
Nugget/NNP
reported/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
11.4/CD
million/CD
,/,
or/CC
69/CD
cents/NNS
a/DT
share/NN
,/,
based/VBN
on/IN
16.6/CD
million/CD
common/JJ
and/CC
dilutive/JJ
equivalents/NNS
outstanding/JJ
./.
The/DT
year/NN
earlier/RBR
,/,
the/DT
company/NN
had/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
4.3/CD
million/CD
,/,
or/CC
20/CD
cents/NNS
a/DT
share/NN
,/,
based/VBN
on/IN
21/CD
million/CD
common/JJ
shares/NNS
and/CC
dilutive/JJ
equivalents/NNS
outstanding/JJ
./.
The/DT
1988/CD
results/NNS
include/VBP
a/DT
$/$
10.7/CD
million/CD
charge/NN
stemming/VBG
from/IN
a/DT
litigation/NN
judgment/NN
./.
Separately/RB
,/,
the/DT
casino/NN
operator/NN
said/VBD
its/PRP$
board/NN
approved/VBD
a/DT
plan/NN
to/TO
buy-back/VB
as/RB
many/JJ
as/IN
three/CD
million/CD
common/JJ
shares/NNS
from/IN
time/NN
to/TO
time/NN
,/,
either/CC
in/IN
the/DT
open/JJ
market/NN
or/CC
through/IN
private/JJ
transactions/NNS
./.
An/DT
additional/JJ
299,000/CD
shares/NNS
are/VBP
authorized/VBN
for/IN
repurchase/NN
under/IN
an/DT
earlier/JJR
stock/NN
buy-back/NN
program/NN
./.
John/NNP
Uphoff/NNP
,/,
an/DT
analyst/NN
with/IN
Raymond/NNP
James/NNP
&/CC
Associates/NNPS
,/,
said/VBD
the/DT
results/NNS
were/VBD
n't/RB
surprising/JJ
,/,
and/CC
attributed/VBD
the/DT
buy-back/NN
to/TO
management/NN
's/POS
confidence/NN
in/IN
the/DT
Mirage/NNP
's/POS
ability/NN
to/TO
generate/VB
strong/JJ
cash/NN
flow/NN
in/IN
1990/CD
./.
Yesterday/NN
,/,
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Golden/NNP
Nugget/NNP
common/NN
closed/VBD
at/IN
$/$
28.25/CD
,/,
up/IN
$/$
2/CD
./.
Capital/NNP
Holding/NNP
Corp./NNP
said/VBD
it/PRP
requested/VBD
and/CC
received/VBD
the/DT
resignation/NN
of/IN
John/NNP
A./NNP
Franco/NNP
,/,
its/PRP$
vice/NN
chairman/NN
,/,
as/IN
an/DT
officer/NN
and/CC
a/DT
director/NN
of/IN
the/DT
life/NN
insurance/NN
holding/VBG
company/NN
./.
The/DT
company/NN
said/VBD
Mr./NNP
Franco/NNP
developed/VBD
a/DT
plan/NN
to/TO
establish/VB
a/DT
business/NN
that/WDT
might/MD
be/VB
competitive/JJ
with/IN
Capital/NNP
Holding/NNP
Corp./NNP
's/POS
Accumulation/NNP
and/CC
Investment/NNP
Group/NNP
,/,
which/WDT
Mr./NNP
Franco/NNP
headed/VBD
./.
The/DT
group/NN
temporarily/RB
will/MD
report/VB
to/TO
Irving/NNP
W./NNP
Bailey/NNP
II/NNP
,/,
chairman/NN
,/,
president/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
Capital/NNP
Holding/NNP
./.
Mr./NNP
Franco/NNP
,/,
47/CD
years/NNS
old/JJ
,/,
said/VBD
in/IN
a/DT
telephone/NN
interview/NN
that/IN
he/PRP
has/VBZ
been/VBN
considering/VBG
and/CC
discussing/VBG
a/DT
number/NN
of/IN
possible/JJ
business/NN
ventures/NNS
,/,
but/CC
that/IN
``/``
nothing/NN
is/VBZ
at/IN
a/DT
mature/JJ
stage/NN
./.
''/''
He/PRP
said/VBD
he/PRP
``/``
did/VBD
n't/RB
argue/VB
with/IN
''/''
the/DT
company/NN
's/POS
decision/NN
to/TO
seek/VB
his/PRP$
resignation/NN
because/IN
contemplating/VBG
outside/IN
business/NN
ventures/NNS
can/MD
distract/VB
an/DT
executive/NN
from/IN
performing/VBG
his/PRP$
best/JJS
``/``
at/IN
the/DT
job/NN
he/PRP
is/VBZ
paid/VBN
to/TO
do/VB
./.
''/''
Martin/NNP
H./NNP
Ruby/NNP
,/,
a/DT
managing/VBG
director/NN
of/IN
Capital/NNP
Holding/NNP
's/POS
Accumulation/NNP
and/CC
Investment/NNP
Group/NNP
,/,
also/RB
resigned/VBD
to/TO
pursue/VB
other/JJ
business/NN
interests/NNS
,/,
Capital/NNP
Holding/NNP
said/VBD
./.
Mr./NNP
Ruby/NNP
,/,
39/CD
,/,
said/VBD
that/IN
he/PRP
had/VBD
``/``
an/DT
amicable/JJ
parting/NN
''/''
with/IN
Capital/NNP
Holding/NNP
and/CC
that/IN
he/PRP
has/VBZ
``/``
a/DT
number/NN
of/IN
ventures/NNS
in/IN
the/DT
financial-services/JJ
area/NN
''/''
under/IN
consideration/NN
./.
He/PRP
said/VBD
that/DT
his/PRP$
resignation/NN
was/VBD
a/DT
mutual/JJ
decision/NN
with/IN
Capital/NNP
Holding/NNP
management/NN
,/,
but/CC
that/IN
he/PRP
was/VBD
n't/RB
actually/RB
asked/VBN
to/TO
resign/VB
./.
The/DT
Accumulation/NNP
and/CC
Investment/NNP
Group/NNP
is/VBZ
responsible/JJ
for/IN
the/DT
investment/NN
operations/NNS
of/IN
all/DT
Capital/NNP
Holding/NNP
's/POS
insurance/NN
businesses/NNS
and/CC
markets/NNS
guaranteed/VBN
investment/NN
contracts/NNS
to/TO
bank/VB
trust/NN
departments/NNS
and/CC
other/JJ
institutions/NNS
./.
It/PRP
also/RB
sells/VBZ
single-premium/JJ
annuities/NNS
to/TO
individuals/NNS
./.
Mr./NNP
Bailey/NNP
said/VBD
he/PRP
expects/VBZ
to/TO
name/VB
a/DT
new/JJ
group/NN
president/NN
to/TO
head/VB
that/DT
operation/NN
following/VBG
the/DT
Nov./NNP
8/CD
board/NN
meeting/NN
./.
@/SYM
Money/NNP
Market/NNP
Deposits/NNS
-/:
a/SYM
6.23/CD
%/NN
a/SYM
-/:
Average/JJ
rate/NN
paid/VBN
yesterday/NN

by/IN
100/CD
large/JJ
banks/NNS
and/CC
thrifts/NNS
in/IN
the/DT
10/CD
largest/JJS
metropolitan/JJ
areas/NNS
as/IN
compiled/VBN
by/IN
Bank/NNP
Rate/NNP
Monitor/NNP
./.
b/SYM
-/:
Current/JJ
annual/JJ
yield/NN
./.
Guaranteed/VBN
minimum/NN
6/CD
%/NN
./.
its/PRP$
centennial/NN
year/NN
,/,
The/DT
Wall/NNP
Street/NNP
Journal/NNP
will/MD
report/VB
events/NNS
of/IN
the/DT
past/JJ
century/NN
that/WDT
stand/VBP
as/IN
milestones/NNS
of/IN
American/JJ
business/NN
history/NN
./.
PLASTIC/NN
PENCILS/NNS
,/,
CODE-NAMED/VBN
E-71/NNP
,/,
made/VBD
their/PRP$
hush-hush/JJ
debut/NN
in/IN
children/NNS
's/POS
pencil/NN
boxes/NNS
at/IN
five-and-dime/NN
stores/NNS
in/IN
1973/CD
./.
But/CC
few/JJ
knew/VBD
it/PRP
then/RB
and/CC
most/RBS
still/RB
think/VBP
all/DT
pencils/NNS
are/VBP
wooden/JJ
./.
Eagle/NNP
Pencil/NNP
of/IN
Shelbyville/NNP
,/,
Tenn./NNP
,/,
``/``
Pencil/NNP
City/NNP
U.S.A./NNP
,/,
''/''
had/VBD
made/VBN
its/PRP$
earliest/JJS
pilot/NN
plastic/NN
pencils/NNS
in/IN
1971/CD
./.
But/CC
it/PRP
was/VBD
n't/RB
until/IN
after/IN
it/PRP
hired/VBD
Arthur/NNP
D./NNP
Little/NNP
,/,
a/DT
Cambridge/NNP
,/,
Mass./NNP
,/,
research/NN
concern/NN
,/,
that/IN
its/PRP$
new/JJ
product/NN
was/VBD
refined/VBN
for/IN
commercial/JJ
sale/NN
in/IN
1973/CD
./.
Three/CD
A.D.L./NNP
inventors/NNS
applied/VBD
April/NNP
6/CD
,/,
1973/CD
,/,
for/IN
the/DT
patent/NN
,/,
which/WDT
was/VBD
assigned/VBN
and/CC
awarded/VBN
in/IN
1976/CD
to/TO
Hasbro/NNP
Industries/NNPS
,/,
then/RB
Eagle/NNP
's/POS
parent/NN
./.
Pencil/NN
pushers/NNS
chew/VBP
and/CC
put/VBP
the/DT
plastic/NN
models/NNS
behind/IN
their/PRP$
ears/NNS
just/RB
like/IN
traditional/JJ
pencils/NNS
made/VBN
of/IN
glued/VBN
strips/NNS
of/IN
California/NNP
incense/NN
cedar/NN
filled/VBN
with/IN
ceramic/JJ
lead/NN
./.
It/PRP
takes/VBZ
five/CD
steps/NNS
to/TO
make/VB
standard/JJ
pencils/NNS
,/,
just/RB
one/CD
for/IN
the/DT
plastic/NN
type/NN
./.
Automated/VBN
machines/NNS
coextrude/VBP
long/JJ
plastic/NN
sheaths/NNS
with/IN
graphite-plastic/JJ
cores/NNS
that/WDT
are/VBP
printed/VBN
,/,
cut/VBN
,/,
painted/VBN
and/CC
eraser-fitted/JJ
./.
``/``
After/IN
more/RBR
than/IN
200/CD
years/NNS
,/,
something/NN
new/JJ
has/VBZ
happened/VBN
to/TO
pencils/NNS
,/,
''/''
said/VBD
Arthur/NNP
D./NNP
Little/NNP
in/IN
a/DT
1974/CD
report/NN
that/WDT
publicly/RB
described/VBD
the/DT
previously/RB
secret/JJ
item/NN
./.
Eagle/NNP
's/POS
plastic/JJ
type/NN
sharpens/VBZ
and/CC
looks/VBZ
like/IN
a/DT
wooden/JJ
pencil/NN
./.
A/DT
major/JJ
difference/NN
is/VBZ
that/IN
a/DT
snapped/JJ
wooden/JJ
pencil/NN
will/MD
have/VB
a/DT
slivered/VBN
break/NN
while/IN
a/DT
plastic/NN
model/NN
will/MD
break/VB
cleanly/RB
./.
The/DT
softness/NN
of/IN
the/DT
core/NN
constrains/VBZ
the/DT
plastic/NN
models/NNS
to/TO
No./NN
1/CD
,/,
No./NN
2/CD
or/CC
No./NN
3-type/JJ
pencils/NNS
,/,
which/WDT
account/VBP
for/IN
the/DT
bulk/NN
of/IN
the/DT
market/NN
./.
Artists/NNS
and/CC
draftsmen/NNS
need/VBP
harder/JJR
``/``
leads/NNS
./.
''/''
Eagle/NNP
,/,
now/RB
called/VBN
Eagle-Berol/NNP
,/,
remains/VBZ
a/DT
leading/VBG
company/NN
among/IN
the/DT
10/CD
in/IN
the/DT
U.S./NNP
that/IN
produced/VBD
about/IN
2.3/CD
billion/CD
pencils/NNS
last/JJ
year/NN
,/,
according/VBG
to/TO
the/DT
Pencil/NNP
Makers/NNPS
Association/NNP
./.
It/PRP
's/VBZ
a/DT
trade/NN
secret/NN
how/WRB
many/JJ
were/VBD
plastic/NN
,/,
and/CC
most/JJS
writers/NNS
still/RB
do/VBP
n't/RB
know/VB
what/WP
they/PRP
're/VBP
using/VBG
./.
H.F./NNP
Ahmanson/NNP
&/CC
Co./NNP
,/,
the/DT
nation/NN
's/POS
largest/JJS
thrift/NN
holding/VBG
company/NN
,/,
posted/VBD
a/DT
12/CD
%/NN
earnings/NNS
decline/NN
for/IN
the/DT
third/JJ
quarter/NN
while/IN
another/DT
large/JJ
California/NNP
savings/NNS
and/CC
loan/NN
,/,
Great/NNP
Western/NNP
Financial/NNP
Corp./NNP
,/,
reported/VBD
a/DT
slight/JJ
earnings/NNS
gain/NN
./.
H.F./NNP
Ahmanson/NNP
,/,
parent/NN
of/IN
Home/NNP
Savings/NNP
of/IN
America/NNP
,/,
reported/VBD
third-quarter/NN
net/NN
of/IN
$/$
49.2/CD
million/CD
,/,
or/CC
50/CD
cents/NNS
a/DT
share/NN
,/,
down/IN
from/IN
$/$
56.1/CD
million/CD
,/,
or/CC
57/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
year-earlier/JJ
period/NN
./.
Most/JJS
of/IN
the/DT
earnings/NNS
decline/NN
reflected/VBD
an/DT
increase/NN
in/IN
the/DT
company/NN
's/POS
effective/JJ
tax/NN
rate/NN
to/TO
44/CD
%/NN
from/IN
37/CD
%/NN
in/IN
the/DT
year-ago/JJ
third/JJ
quarter/NN
when/WRB
nonrecurring/VBG
tax/NN
credits/NNS
were/VBD
recorded/VBN
,/,
the/DT
company/NN
said/VBD
./.
Pretax/NNP
earnings/NNS
declined/VBD
1.3/CD
%/NN
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Los/NNP
Angeles-based/JJ
H.F./NNP
Ahmanson/NNP
had/VBD
profit/NN
of/IN
$/$
128.1/CD
million/CD
,/,
or/CC
$/$
1.29/CD
a/DT
share/NN
,/,
a/DT
4.6/CD
%/NN
decline/NN
from/IN
earnings/NNS
of/IN
$/$
134.2/CD
million/CD
in/IN
the/DT
year-ago/JJ
nine/CD
months/NNS
./.
The/DT
company/NN
said/VBD
the/DT
decline/NN
was/VBD
attributable/JJ
to/TO
a/DT
79/CD
%/NN
reduction/NN
in/IN
net/JJ
gains/NNS
on/IN
loan/NN
sales/NNS
this/DT
year/NN
./.
Third-quarter/NN
spreads/NNS
widened/VBD
to/TO
the/DT
highest/JJS
level/NN
in/IN
two/CD
years/NNS
as/IN
loan/NN
portfolio/NN
yields/NNS
rose/VBP
and/CC
money/NN
costs/NNS
declined/VBD
,/,
the/DT
company/NN
said/VBD
./.
Great/NNP
Western/NNP
Financial/NNP
said/VBD
third-quarter/NN
profit/NN
rose/VBD
slightly/RB
to/TO
$/$
68.4/CD
million/CD
,/,
or/CC
52/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
67.9/CD
million/CD
,/,
or/CC
53/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
a/DT
year/NN
ago/IN
./.
Great/NNP
Western/NNP
,/,
based/VBN
in/IN
Beverly/NNP
Hills/NNP
,/,
Calif./NNP
,/,
is/VBZ
a/DT
financial/JJ
services/NNS
firm/NN
and/CC
parent/NN
to/TO
Great/NNP
Western/NNP
Bank/NNP
,/,
an/DT
S&L/NNP
./.
Great/NNP
Western/NNP
said/VBD
it/PRP
had/VBD
a/DT
sharp/JJ
increase/NN
in/IN
margins/NNS
in/IN
the/DT
recent/JJ
third/JJ
quarter/NN
./.
Margins/NNS
are/VBP
the/DT
difference/NN
between/IN
the/DT
yield/NN
on/IN
the/DT
company/NN
's/POS
earning/VBG
assets/NNS
and/CC
its/PRP$
own/JJ
cost/NN
of/IN
funds/NNS
./.
But/CC
a/DT
reduction/NN
in/IN
one-time/JJ
gains/NNS
on/IN
the/DT
sale/NN
of/IN
various/JJ
assets/NNS
and/CC
an/DT
increase/NN
in/IN
the/DT
company/NN
's/POS
provision/NN
for/IN
loan/NN
losses/NNS
held/VBD
down/RP
the/DT
earnings/NNS
gain/NN
,/,
the/DT
company/NN
said/VBD
./.
Great/NNP
Western/NNP
's/POS
provision/NN
for/IN
loan/NN
losses/NNS
was/VBD
increased/VBN
to/TO
$/$
27.9/CD
million/CD
for/IN
the/DT
recent/JJ
quarter/NN
compared/VBN
with/IN
$/$
21.8/CD
million/CD
a/DT
year/NN
ago/IN
primarily/RB
as/IN
a/DT
result/NN
of/IN
``/``
continued/VBN
weakness/NN
in/IN
various/JJ
commercial/JJ
and/CC
multifamily/RB
real/JJ
estate/NN
markets/NNS
outside/IN
California/NNP
./.
''/''
For/IN
the/DT
nine/CD
months/NNS
Great/NNP
Western/NNP
posted/VBD
net/NN
of/IN
$/$
177.5/CD
million/CD
,/,
or/CC
$/$
1.37/CD
a/DT
share/NN
,/,
a/DT
5.9/CD
%/NN
decline/NN
from/IN
$/$
188.7/CD
million/CD
,/,
or/CC
$/$
1.48/CD
a/DT
share/NN
,/,
in/IN
the/DT
year-ago/JJ
period/NN
./.
Dun/NNP
&/CC
Bradstreet/NNP
Corp./NNP
posted/VBD
a/DT
15/CD
%/NN
rise/NN
in/IN
third-quarter/NN
earnings/NNS
./.
But/CC
revenue/NN
declined/VBD
more/JJR
than/IN
2/CD
%/NN
,/,
reflecting/VBG
in/IN
part/NN
a/DT
continuing/VBG
drop/NN
in/IN
sales/NNS
of/IN
credit/NN
services/NNS
in/IN
the/DT
wake/NN
of/IN
controversy/NN
over/IN
the/DT
company/NN
's/POS
sales/NNS
practices/NNS
./.
The/DT
information/NN
company/NN
also/RB
cited/VBD
the/DT
stronger/JJR
dollar/NN
,/,
the/DT
sale/NN
last/JJ
year/NN
of/IN
its/PRP$
former/JJ
Official/NNP
Airline/NNP
Guides/NNPS
unit/NN
and/CC
other/JJ
factors/NNS
./.
Net/JJ
income/NN
rose/VBD
to/TO
a/DT
record/NN
$/$
155.3/CD
million/CD
,/,
or/CC
83/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
134.8/CD
million/CD
,/,
or/CC
72/CD
cents/NNS
a/DT
share/NN
./.
Revenue/NN
fell/VBD
to/TO
$/$
1.04/CD
billion/CD
from/IN
$/$
1.07/CD
billion/CD
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Dun/NNP
&/CC
Bradstreet/NNP
closed/VBD
yesterday/NN
at/IN
$/$
53.75/CD
,/,
down/IN
25/CD
cents/NNS
a/DT
share/NN
./.
Analysts/NNS
said/VBD
the/DT
results/NNS
were/VBD
as/RB
expected/VBN
,/,
but/CC
several/JJ
added/VBN
that/IN
the/DT
earnings/NNS
masked/VBD
underlying/VBG
weaknesses/NNS
in/IN
several/JJ
businesses/NNS
./.
``/``
The/DT
quality/NN
of/IN
earnings/NNS
was/VBD
n't/RB
as/RB
high/JJ
as/IN
I/PRP
expected/VBD
,/,
''/''
said/VBD
Eric/NNP
Philo/NNP
,/,
an/DT
analyst/NN
for/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
./.
For/IN
example/NN
,/,
he/PRP
noted/VBD
,/,
operating/VBG
profit/NN
was/VBD
weaker/JJR
than/IN
he/PRP
had/VBD
anticipated/VBN
,/,
but/CC
nonoperating/NN
earnings/NNS
of/IN
$/$
14.6/CD
million/CD
and/CC
a/DT
lower/JJR
tax/NN
rate/NN
helped/VBD
boost/VB
net/NN
income/NN
./.
Dun/NNP
&/CC
Bradstreet/NNP
said/VBD
operating/NN
earnings/NNS
rose/VBD
8/CD
%/NN
,/,
excluding/VBG
the/DT
sale/NN
of/IN
Official/NNP
Airline/NNP
Guides/NNPS
./.
Third-quarter/NN
sales/NNS
of/IN
U.S./NNP
credit/NN
services/NNS
were/VBD
``/``
disappointingly/RB
below/IN
sales/NNS
''/''
of/IN
a/DT
year/NN
earlier/RBR
,/,
Dun/NNP
&/CC
Bradstreet/NNP
said/VBD
./.
As/IN
previously/RB
reported/VBN
,/,
those/DT
sales/NNS
have/VBP
been/VBN
declining/VBG
this/DT
year/NN
in/IN
the/DT
wake/NN
of/IN
allegations/NNS
that/IN
the/DT
company/NN
engaged/VBD
in/IN
unfair/JJ
sales/NNS
practices/NNS
that/WDT
encouraged/VBD
customers/NNS
to/TO
overpurchase/VB
services/NNS
./.
The/DT
company/NN
has/VBZ
denied/VBN
the/DT
allegations/NNS
but/CC
has/VBZ
negotiated/VBN
a/DT
proposed/VBN
$/$
18/CD
million/CD
settlement/NN
of/IN
related/VBN
lawsuits/NNS
./.
Analysts/NNS
predict/VBP
the/DT
sales/NNS
impact/NN
will/MD
linger/VB
./.
``/``
There/EX
is/VBZ
n't/RB
much/JJ
question/NN
there/RB
will/MD
continue/VB
to/TO
be/VB
a/DT
ripple/NN
effect/NN
,/,
''/''
said/VBD
John/NNP
Reidy/NNP
,/,
an/DT
analyst/NN
with/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc/NNP
./.
Dun/NNP
&/CC
Bradstreet/NNP
noted/VBD
that/IN
price/NN
competition/NN
in/IN
its/PRP$
Nielsen/NNP
Marketing/NNP
Research/NNP
,/,
Nielsen/NNP
Clearing/NNP
House/NNP
and/CC
Donnelley/NNP
Marketing/NNP
businesses/NNS
also/RB
restrained/VBD
revenue/NN
growth/NN
./.
It/PRP
cited/VBD
cyclical/JJ
conditions/NNS
in/IN
its/PRP$
Moody/NNP
's/POS
Investors/NNPS
Service/NNP
Inc./NNP
and/CC
D&B/NNP
Plan/NNP
Services/NNPS
units/NNS
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
net/JJ
income/NN
rose/VBD
19/CD
%/NN
to/TO
$/$
449/CD
million/CD
,/,
or/CC
$/$
2.40/CD
a/DT
share/NN
,/,
from/IN
$/$
375.9/CD
million/CD
,/,
or/CC
$/$
2.01/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Year-earlier/JJ
earnings/NNS
reflected/VBD
costs/NNS
of/IN
$/$
14.3/CD
million/CD
related/VBN
to/TO
the/DT
acquisition/NN
of/IN
IMS/NNP
International/NNP
./.
Revenue/NN
rose/VBD
slightly/RB
to/TO
$/$
3.16/CD
billion/CD
from/IN
$/$
3.13/CD
billion/CD
./.
Control/NNP
Data/NNP
Corp./NNP
said/VBD
it/PRP
licensed/VBD
its/PRP$
airline/NN
yield-management/NN
software/NN
to/TO
the/DT
International/NNP
Air/NNP
Transport/NNP
Association/NNP
./.
Terms/NNS
include/VBP
a/DT
royalty/NN
arrangement/NN
,/,
but/CC
details/NNS
were/VBD
n't/RB
disclosed/VBN
./.
The/DT
computer/NN
equipment/NN
and/CC
financial/JJ
services/NNS
company/NN
said/VBD
IATA/NNP
,/,
a/DT
trade/NN
group/NN
,/,
will/MD
sell/VB
access/NN
to/TO
the/DT
package/NN
to/TO
its/PRP$
180/CD
airline/NN
members/NNS
world-wide/JJ
./.
Control/NNP
Data/NNP
will/MD
receive/VB
revenue/NN
linked/VBN
to/TO
the/DT
number/NN
of/IN
passengers/NNS
served/VBN
by/IN
the/DT
software/NN
,/,
IATA/NNP
said/VBD
./.
The/DT
package/NN
helps/VBZ
carriers/NNS
solve/VB
pricing/NN
problems/NNS
,/,
such/JJ
as/IN
how/WRB
to/TO
react/VB
to/TO
discounts/NNS
offered/VBN
by/IN
competitors/NNS
or/CC
what/WP
would/MD
be/VB
the/DT
optimum/JJ
number/NN
of/IN
seats/NNS
to/TO
offer/VB
at/IN
a/DT
given/VBN
price/NN
./.
Wheeling-Pittsburgh/NNP
Steel/NNP
Corp./NNP
said/VBD
it/PRP
decided/VBD
to/TO
proceed/VB
with/IN
installation/NN
of/IN
automatic/JJ
gauge/NN
and/CC
shape/NN
controls/NNS
at/IN
its/PRP$
60-inch/JJ
tandem/NN
cold/JJ
rolling/VBG
mill/NN
in/IN
Allenport/NNP
,/,
Pa/NNP
./.
The/DT
new/JJ
equipment/NN
,/,
which/WDT
will/MD
produce/VB
steel/NN
sheet/NN
with/IN
more/JJR
uniform/JJ
thickness/NN
and/CC
flatness/NN
,/,
is/VBZ
likely/JJ
to/TO
cost/VB
more/JJR
than/IN
$/$
20/CD
million/CD
,/,
the/DT
company/NN
said/VBD
./.
When/WRB
the/DT
company/NN
last/RB
considered/VBD
adding/VBG
the/DT
equipment/NN
two/CD
years/NNS
ago/IN
,/,
it/PRP
estimated/VBD
the/DT
cost/NN
at/IN
$/$
21/CD
million/CD
to/TO
$/$
22/CD
million/CD
,/,
but/CC
a/DT
task/NN
force/NN
will/MD
have/VB
to/TO
prepare/VB
a/DT
detailed/VBN
plan/NN
before/IN
the/DT
company/NN
can/MD
predict/VB
the/DT
current/JJ
cost/NN
./.
The/DT
time/NN
schedule/NN
for/IN
installing/VBG
the/DT
equipment/NN
also/RB
will/MD
be/VB
developed/VBN
by/IN
the/DT
task/NN
force/NN
,/,
the/DT
company/NN
said/VBD
./.
Sir/NNP
Richard/NNP
Butler/NNP
,/,
60-year-old/JJ
chairman/NN
of/IN
Agricola/NNP
U.K/NNP
./.
Ltd./NNP
,/,
was/VBD
named/VBN
chairman/NN
of/IN
County/NNP
NatWest/NNP
Investment/NNP
Management/NNP
Ltd./NNP
,/,
the/DT
investment/NN
management/NN
subsidiary/NN
of/IN
County/NNP
NatWest/NNP
Ltd./NNP
,/,
the/DT
investment/NN
banking/NN
arm/NN
of/IN
this/DT
British/JJ
bank/NN
./.
Sir/NNP
Richard/NNP
succeeds/VBZ
John/NNP
Plastow/NNP
,/,
who/WP
resigned/VBD
in/IN
July/NNP
./.
Sir/NNP
Richard/NNP
is/VBZ
also/RB
a/DT
non-executive/JJ
director/NN
at/IN
National/NNP
Westminister/NNP
Bank/NNP
and/CC
NatWest/NNP
Investment/NNP
Bank/NNP
Ltd/NNP
./.
In/IN
the/DT
long/JJ
,/,
frightening/JJ
night/NN
after/IN
Tuesday/NNP
's/POS
devastating/VBG
earthquake/NN
,/,
Bay/NNP
Area/NNP
residents/NNS
searched/VBD
for/IN
comfort/NN
and/CC
solace/NN
wherever/WRB
they/PRP
could/MD
./.
Some/DT
found/VBD
it/PRP
on/IN
the/DT
screen/NN
of/IN
a/DT
personal/JJ
computer/NN
./.
Hundreds/NNS
of/IN
Californians/NNPS
made/VBD
their/PRP$
way/NN
to/TO
their/PRP$
computers/NNS
after/IN
the/DT
quake/NN
,/,
and/CC
checked/VBD
in/IN
with/IN
each/DT
other/JJ
on/IN
electronic/JJ
bulletin/NN
boards/NNS
,/,
which/WDT
link/VBP
computers/NNS
CB-radio-style/JJ
,/,
via/IN
phone/NN
lines/NNS
./.
Some/DT
of/IN
the/DT
most/RBS
vivid/JJ
bulletins/NNS
came/VBD
over/IN
The/NNP
Well/NNP
,/,
a/DT
Sausalito/NNP
,/,
Calif./NNP
,/,
board/NN
that/WDT
is/VBZ
one/CD
of/IN
the/DT
liveliest/JJS
outposts/NNS
of/IN
the/DT
electronic/JJ
underground/NN
./.
About/IN
two-thirds/NNS
of/IN
the/DT
Well/NNP
's/POS
3,000/CD
subscribers/NNS
live/VBP
in/IN
the/DT
Bay/NNP
Area/NNP
./.
The/DT
quake/NN
knocked/VBD
The/NNP
Well/NNP
out/IN
for/IN
six/CD
hours/NNS
,/,
but/CC
when/WRB
it/PRP
came/VBD
back/RB
up/IN
,/,
it/PRP
teemed/VBD
with/IN
emotional/JJ
first-hand/JJ
reports/NNS
./.
Following/VBG
are/VBP
excerpts/NNS
from/IN
the/DT
electronic/JJ
traffic/NN
that/DT
night/NN
./.
The/DT
time/NN
is/VBZ
Pacific/NNP
Daylight/NNP
Time/NN
,/,
and/CC
the/DT
initials/NNS
or/CC
nicknames/NNS
are/VBP
those/DT
subscribers/NNS
use/VBP
to/TO
identify/VB
themselves/PRP
./.
11:54/CD
p.m/RB
./.
JCKC/NNP
:/:
Wow/UH
!/.
I/PRP
was/VBD
in/IN
the/DT
avenues/NNS
,/,
on/IN
the/DT
third/JJ
floor/NN
of/IN
an/DT
old/JJ
building/NN
,/,
and/CC
except/IN
for/IN
my/PRP$
heart/NN
Beat/NN
,/,
BEAT/NN
!/.
I/PRP
'm/VBP
OK/JJ
./.
Got/VBD
back/RB
to/TO
Bolinas/NNP
,/,
and/CC
everything/NN
had/VBD
fallen/VBN
:/:
broken/VBN
poster/NN
frames/NNS
with/IN
glass/NN
on/IN
the/DT
floor/NN
,/,
file/NN
cabinets/NNS
open/JJ
or/CC
dumped/VBN
onto/IN
the/DT
floor/NN
./.
11:59/CD
p.m/RB
./.
JKD/NNP
:/:
I/PRP
was/VBD
in/IN
my/PRP$
favorite/JJ
watering/NN
hole/NN
,/,
waiting/VBG
for/IN
the/DT
game/NN
to/TO
start/VB
./.
I/PRP
felt/VBD
the/DT
temblor/NN
begin/VB
and/CC
glanced/VBD
at/IN
the/DT
table/NN
next/JJ
to/TO
mine/PRP
,/,
smiled/VBD
that/DT
guilty/JJ
smile/NN
and/CC
we/PRP
both/DT
mouthed/VBD
the/DT
words/NNS
,/,
``/``
Earth-quake/NN
!/.
''/''
together/RB
./.
That/DT
's/VBZ
usually/RB
how/WRB
long/JJ
it/PRP
takes/VBZ
for/IN
the/DT
temblors/NNS
to/TO
pass/VB
./.
This/DT
time/NN
,/,
it/PRP
just/RB
got/VBD
stronger/JJR
and/CC
then/RB
the/DT
building/NN
started/VBD
shaking/VBG
violently/RB
up/IN
and/CC
down/IN
as/RB
though/IN
it/PRP
were/VBD
a/DT
child/NN
's/POS
toy/NN
block/NN
that/WDT
was/VBD
being/VBG
tossed/VBD
./.
12:06/CD
a.m/RB
./.
HRH/NNP
:/:
I/PRP
was/VBD
in/IN
the/DT
Berkeley/NNP
Main/NNP
library/NN
when/WRB
it/PRP
hit/VBD
./.
Endless/JJ
seconds/NNS
wondering/VBG
if/IN
those/DT
huge/JJ
windows/NNS
would/MD
buckle/VB
and/CC
shower/VB
us/PRP
with/IN
glass/NN
./.
Only/RB
a/DT
few/JJ
books/NNS
fell/VBD
in/IN
the/DT
reading/NN
room/NN
./.
Then/RB
the/DT
auto/NN
paint/NN
shop/NN
fire/NN
sent/VBD
an/DT
evil-looking/JJ
cloud/NN
of/IN
black/JJ
smoke/NN
into/IN
the/DT
air/NN
./.
12:07/CD
a.m/RB
./.
ONEZIE/NNP
:/:
My/PRP$
younger/JJR
daughter/NN
and/CC
I/PRP
are/VBP
fine/JJ
./.
This/DT
building/NN
shook/VBD
like/IN
hell/NN
and/CC
it/PRP
kept/VBD
getting/VBG
stronger/JJR
./.
Except/IN
for/IN
the/DT
gas/NN
tank/NN
at/IN
Hustead/NNP
's/POS
Towing/NNP
Service/NNP
exploding/VBG
and/CC
burning/VBG
in/IN
downtown/NN
Berkeley/NNP
,/,
things/NNS
here/RB
are/VBP
quite/RB
peaceful/JJ
./.
A/DT
lot/NN
of/IN
car/NN
alarms/NNS
went/VBD
off/IN
./.
The/DT
cats/NNS
are/VBP
fine/JJ
,/,
although/IN
nervous/JJ
./.
12:15/CD
a.m/RB
./.
DHAWK/NNP
:/:
Huge/JJ
fire/NN
from/IN
broken/VBN
gas/NN
main/NN
in/IN
the/DT
Marina/NNP
in/IN
SF/NNP
./.
Areas/NNS
that/WDT
are/VBP
made/VBN
of/IN
`/``
fill/NN
'/''
liquefy/VBP
./.
A/DT
woman/NN
in/IN
a/DT
three-story/JJ
apartment/NN
was/VBD
able/JJ
to/TO
walk/VB
out/IN
the/DT
window/NN
of/IN
the/DT
third/JJ
floor/NN
onto/IN
street/NN
level/NN
after/IN
the/DT
quake/NN
./.
The/DT
house/NN
just/RB
settled/VBD
right/RB
down/IN
into/IN
the/DT
ground/NN
./.
12:38/CD
a.m/RB
./.
DAYAC/NNP
:/:
I/PRP
was/VBD
driving/VBG
my/PRP$
truck/NN
,/,
stopped/VBD
at/IN
a/DT
red/JJ
light/NN
at/IN
the/DT
corner/NN
of/IN
Shattuck/NNP
and/CC
Alcatraz/NNP
at/IN
the/DT
Oakland-Berkeley/NNP
border/NN
when/WRB
it/PRP
hit/VBD
./.
Worst/JJS
part/NN
was/VBD
watching/VBG
power/NN
lines/NNS
waving/VBG
above/IN
my/PRP$
head/NN
and/CC
no/DT
way/NN
to/TO
drive/VB
away/RB
./.
12:48/CD
a.m/RB
./.
LMEYER/NNP
:/:
Was/VBD
300/CD
ft./NN
out/RB
on/IN
a/DT
pier/NN
in/IN
San/NNP
Rafael/NNP
./.
It/PRP
flopped/VBD
all/DT
around/IN
,/,
real/RB
dramatic/JJ
!/.
Many/JJ
hairline/NN
cracks/NNS
in/IN
the/DT
concrete/JJ
slabs/NNS
afterwards/RB
./.
Ruined/VBN
the/DT
damn/JJ
fishing/NN
!/.
1:00/CD
a.m/RB
./.
HEYNOW/NNP
:/:
I/PRP
rode/VBD
it/PRP
out/IN
on/IN
the/DT
second/JJ
floor/NN
of/IN
Leo/NNP
's/POS
at/IN
55th/JJ
and/CC
Telegraph/NNP
in/IN
Oakland/NNP
./.
I/PRP
heard/VBD
parts/NNS
of/IN
the/DT
building/NN
above/IN
my/PRP$
head/NN
cracking/VBG
./.
I/PRP
actually/RB
thought/VBD
that/IN
I/PRP
might/MD
die/VB
./.
I/PRP
could/MD
n't/RB
decide/VB
if/IN
I/PRP
should/MD
come/VB
home/NN
to/TO
Marin/NNP
,/,
because/IN
my/PRP$
house/NN
is/VBZ
on/IN
stilts/NNS
./.
I/PRP
decided/VBD
to/TO
brave/VB
the/DT
storm/NN
./.
There/EX
was/VBD
a/DT
horrible/JJ
smell/NN
of/IN
gas/NN
as/IN
I/PRP
passed/VBD
the/DT
Chevron/NNP
refinery/NN
before/IN
crossing/VBG
the/DT
Richmond-San/NNP
Rafael/NNP
Bridge/NNP
./.
I/PRP
could/MD
also/RB
see/VB
the/DT
clouds/NNS
across/IN
the/DT
bay/NN
from/IN
the/DT
horrible/JJ
fire/NN
in/IN
the/DT
Marina/NNP
District/NNP
of/IN
San/NNP
Francisco/NNP
./.
I/PRP
have/VBP
felt/VBN
many/JJ
aftershocks/NNS
./.
My/PRP$
back/NN
is/VBZ
still/RB
in/IN
knots/NNS
and/CC
my/PRP$
hands/NNS
are/VBP
still/RB
shaking/VBG
./.
I/PRP
think/VBP
a/DT
few/JJ
of/IN
the/DT
aftershocks/NNS
might/MD
just/RB
be/VB
my/PRP$
body/NN
shaking/VBG
./.
1:11/CD
a.m./NN
GR8FLRED/NNP
:/:
I/PRP
could/MD
see/VB
the/DT
flames/NNS
from/IN
San/NNP
Francisco/NNP
from/IN
my/PRP$
house/NN
across/IN
the/DT
bay/NN
./.
It/PRP
's/VBZ
hard/JJ
to/TO
believe/VB
this/DT
really/RB
is/VBZ
happening/VBG
./.
1:11/CD
a.m/RB
./.
RD/NNP
:/:
Building/NN
on/IN
the/DT
corner/NN
severely/RB
damaged/VBN
,/,
so/IN
an/DT
old/JJ
lady/NN
and/CC
her/PRP$
very/RB
old/JJ
mother/NN
are/VBP
in/IN
the/DT
guest/NN
room/NN
./.
Books/NNS
and/CC
software/NN
everywhere/RB
./.
This/DT
being/VBG
typed/VBN
in/IN
a/DT
standing/NN
position/NN
./.
1:20/CD
a.m/RB
./.
DGAULT/NNP
:/:
Bolinas/NNP
--/:
astride/IN
the/DT
San/NNP
Andreas/NNP
Fault/NNP
./.
Did/VBD
n't/RB
feel/VB
a/DT
thing/NN
,/,
but/CC
noticed/VBD
some/DT
strange/JJ
bird/NN
behavior/NN
./.
Duck/NN
swarms/NNS
./.
3:25/CD
a.m/RB
./.
SAMURAI/NNP
:/:
I/PRP
just/RB
felt/VBD
another/DT
aftershock/NN
a/DT
few/JJ
seconds/NNS
ago/IN
./.
I/PRP
'm/VBP
just/RB
numb/JJ
./.
3:25/CD
a.m/RB
./.
MACPOST/NNP
:/:
Downtown/NN
Bolinas/NNP
seems/VBZ
to/TO
be/VB
the/DT
part/NN
of/IN
town/NN
that/WDT
's/VBZ
worst/JJS
off/IN
./.
No/DT
power/NN
,/,
minimal/JJ
phones/NNS
,/,
and/CC
a/DT
mess/NN
of/IN
mayonnaise/NN
,/,
wine/NN
,/,
and/CC
everything/NN
else/RB
all/DT
over/IN
the/DT
floors/NNS
of/IN
the/DT
big/JJ
old/JJ
general/JJ
store/NN
and/CC
the/DT
People/NNS
's/POS
Co-op/NN
./.
The/DT
quivers/NNS
move/VBP
through/IN
my/PRP$
house/NN
every/DT
few/JJ
minutes/NNS
at/IN
unpredictable/JJ
intervals/NNS
,/,
and/CC
the/DT
mouse/NN
that/WDT
's/VBZ
been/VBN
living/VBG
in/IN
my/PRP$
kitchen/NN
has/VBZ
taken/VBN
refuge/NN
under/IN
my/PRP$
desk/NN
./.
It/PRP
runs/VBZ
out/IN
frantically/RB
now/RB
and/CC
then/RB
,/,
and/CC
is/VBZ
clearly/RB
pretty/RB
distressed/JJ
./.
I/PRP
was/VBD
in/IN
Stinson/NNP
Beach/NNP
when/WRB
the/DT
quake/NN
rolled/VBD
through/IN
town/NN
./.
At/IN
first/JJ
,/,
we/PRP
were/VBD
unfazed/VBN
./.
Then/RB
as/IN
things/NNS
got/VBD
rougher/JJR
,/,
we/PRP
ran/VBD
for/IN
the/DT
door/NN
and/CC
spent/VBD
the/DT
next/JJ
few/JJ
minutes/NNS
outside/IN
watching/VBG
the/DT
brick/NN
sidewalk/NN
under/IN
our/PRP$
feet/NNS
oozing/VBG
up/IN
and/CC
down/IN
,/,
and/CC
the/DT
flowers/NNS
waving/VBG
in/IN
an/DT
eerie/JJ
rhythm/NN
./.
Amazing/JJ
what/WP
it/PRP
does/VBZ
to/TO
one/NN
's/POS
heart/NN
rate/NN
and/CC
one/NN
's/POS
short-term/JJ
memory/NN
./.
Everyone/NN
looked/VBD
calm/JJ
,/,
but/CC
there/EX
was/VBD
this/DT
surreal/JJ
low/JJ
level/NN
of/IN
confusion/NN
as/IN
the/DT
aftershocks/NNS
continued/VBD
./.
4:02/CD
a.m/RB
./.
SHIBUMI/NNP
:/:
Power/NN
is/VBZ
back/RB
on/IN
,/,
and/CC
UCSF/NNP
medical/JJ
center/NN
the/DT
night/NN
they/PRP
were/VBD
doing/VBG
triage/NN
out/IN
in/IN
the/DT
parking/NN
lot/NN
from/IN
the/DT
sound/NN
and/CC
lights/NNS
of/IN
it/PRP
A/DT
friend/NN
of/IN
mine/NN
was/VBD
in/IN
an/DT
underground/JJ
computer/NN
center/NN
in/IN
downtown/NN
SF/NNP
when/WRB
the/DT
quake/NN
hit/VBD
./.
He/PRP
said/VBD
that/IN
one/CD
of/IN
the/DT
computers/NNS
took/VBD
a/DT
three-foot/JJ
trip/NN
sliding/VBG
across/IN
the/DT
floor/NN
./.
Today/NN
should/MD
be/VB
interesting/JJ
as/IN
people/NNS
realize/VBP
how/WRB
hard/JJ
life/NN
is/VBZ
going/VBG
to/TO
be/VB
here/RB
for/IN
a/DT
while/NN
./.
4:30/CD
a.m/RB
./.
KIM/NNP
:/:
I/PRP
got/VBD
home/NN
,/,
let/VBD
the/DT
dogs/NNS
into/IN
the/DT
house/NN
and/CC
noticed/VBD
some/DT
sounds/NNS
above/IN
my/PRP$
head/NN
,/,
as/IN
if/IN
someone/NN
were/VBD
walking/VBG
on/IN
the/DT
roof/NN
,/,
or/CC
upstairs/NN
./.
Then/RB
I/PRP
noticed/VBD
the/DT
car/NN
was/VBD
bouncing/VBG
up/IN
and/CC
down/IN
as/RB
if/IN
someone/NN
were/VBD
jumping/VBG
on/IN
it/PRP
./.
I/PRP
realized/VBD
what/WP
was/VBD
happening/VBG
and/CC
screamed/VBD
into/IN
the/DT
house/NN
for/IN
the/DT
dogs/NNS
./.
Cupboard/NN
doors/NNS
were/VBD
flying/VBG
,/,
the/DT
trash/NN
can/NN
in/IN
the/DT
kitchen/NN
walked/VBD
a/DT
few/JJ
feet/NNS
,/,
the/DT
dogs/NNS
came/VBD
running/VBG
,/,
and/CC
I/PRP
scooted/VBD
them/PRP
into/IN
the/DT
dog/NN
run/NN
and/CC
stood/VBD
in/IN
the/DT
doorway/NN
myself/PRP
,/,
watching/VBG
the/DT
outside/JJ
trash/NN
cans/NNS
dance/VB
across/IN
the/DT
concrete/NN
./.
When/WRB
I/PRP
realized/VBD
it/PRP
was/VBD
over/IN
,/,
I/PRP
went/VBD
and/CC
stood/VBD
out/IN
in/IN
front/NN
of/IN
the/DT
house/NN
,/,
waiting/VBG
and/CC
praying/VBG
for/IN
Merrill/NNP
to/TO
come/VB
home/NN
,/,
shivering/VBG
as/IN
if/IN
it/PRP
were/VBD
20/CD
below/IN
zero/CD
until/IN
he/PRP
got/VBD
there/RB
./.
Never/RB
in/IN
my/PRP$
life/NN
have/VBP
I/PRP
been/VBN
so/RB
frightened/JJ
./.
When/WRB
I/PRP
saw/VBD
the/DT
pictures/NNS
of/IN
880/CD
and/CC
the/DT
Bay/NNP
Bridge/NNP
,/,
I/PRP
began/VBD
to/TO
cry/VB
./.
5:09/CD
a.m/RB
./.
JROE/NNP
:/:
The/DT
Sunset/NNP
District/NNP
a/DT
pajama/NN
party/NN
all/DT
evening/NN
,/,
lots/NNS
of/IN
people/NNS
&/CC
dogs/NNS
walking/VBG
around/IN
,/,
drinking/VBG
beer/NN
./.
6:50/CD
a.m/RB
./.
CAROLG/NNP
:/:
I/PRP
was/VBD
just/RB
sitting/VBG
down/IN
to/TO
meet/VB
with/IN
some/DT
new/JJ
therapy/NN
clients/NNS
,/,
a/DT
couple/NN
,/,
and/CC
the/DT
building/NN
started/VBD
shaking/VBG
like/IN
crazy/JJ
./.
It/PRP
's/VBZ
a/DT
flimsy/JJ
structure/NN
,/,
built/VBN
up/IN
on/IN
supports/NNS
,/,
and/CC
it/PRP
was/VBD
really/RB
rocking/VBG
around/IN
./.
The/DT
three/CD
of/IN
us/PRP
stopped/VBD
breathing/VBG
for/IN
a/DT
moment/NN
,/,
and/CC
then/RB
when/WRB
it/PRP
kept/VBD
on/IN
coming/VBG
we/PRP
lunged/VBD
for/IN
the/DT
doorway/NN
./.
Needless/JJ
to/TO
say/VB
,/,
it/PRP
was/VBD
an/DT
interesting/JJ
first/JJ
session/NN
!/.
7:13/CD
a.m/RB
./.
CALLIOPE/NNP
:/:
Albany/NNP
escaped/VBD
embarrassingly/RB
unscathed/JJ
./.
Biggest/JJS
trouble/NN
was/VBD
scared/VBN
family/NN
who/WP
could/MD
n't/RB
get/VB
a/DT
phone/NN
line/NN
through/IN
,/,
and/CC
spent/VBD
a/DT
really/RB
horrible/JJ
hour/NN
not/RB
knowing/VBG
./.
8:01/CD
a.m/RB
./.
HLR/NNP
:/:
Judy/NNP
and/CC
I/PRP
were/VBD
in/IN
our/PRP$
back/NN
yard/NN
when/WRB
the/DT
lawn/NN
started/VBD
rolling/VBG
like/IN
ocean/NN
waves/NNS
./.
We/PRP
ran/VBD
into/IN
the/DT
house/NN
to/TO
get/VB
Mame/NNP
,/,
but/CC
the/DT
next/JJ
tremor/NN
threw/VBD
me/PRP
in/IN
the/DT
air/NN
and/CC
bounced/VBD
me/PRP
as/IN
I/PRP
tried/VBD
to/TO
get/VB
to/TO
my/PRP$
feet/NNS
./.
We/PRP
are/VBP
all/RB
fine/JJ
here/RB
,/,
although/IN
Mame/NNP
was/VBD
extremely/RB
freaked/VBN
./.
Kitchen/NN
full/JJ
of/IN
broken/VBN
crystal/NN
./.
Books/NNS
and/CC
tapes/NNS
all/DT
over/IN
my/PRP$
room/NN
./.
Not/RB
one/CD
thing/NN
in/IN
the/DT
house/NN
is/VBZ
where/WRB
it/PRP
is/VBZ
supposed/VBN
to/TO
be/VB
,/,
but/CC
the/DT
structure/NN
is/VBZ
fine/JJ
./.
While/IN
I/PRP
was/VBD
standing/VBG
on/IN
the/DT
lawn/NN
with/IN
Mame/NNP
,/,
waiting/VBG
for/IN
another/DT
tremor/NN
,/,
I/PRP
noticed/VBD
that/IN
all/PDT
the/DT
earthworms/NNS
were/VBD
emerging/VBG
from/IN
the/DT
ground/NN
and/CC
slithering/VBG
across/IN
the/DT
lawn/NN
!/.
9:31/CD
a.m./NN
GR8FLRED/CD
:/:
It/PRP
's/VBZ
amazing/JJ
how/WRB
one/CD
second/NN
can/MD
so/RB
completely/RB
change/VB
your/PRP$
life/NN
./.
9:38/CD
a.m/RB
./.
FIG/NNP
:/:
I/PRP
guess/VBP
we/PRP
're/VBP
all/DT
living/VBG
very/RB
tentatively/RB
here/RB
,/,
waiting/VBG
for/IN
the/DT
expected/VBN
but/CC
dreaded/VBN
aftershock/NN
./.
It/PRP
's/VBZ
hard/JJ
to/TO
accept/VB
that/IN
it/PRP
's/VBZ
over/IN
and/CC
only/RB
took/VBD
15/CD
seconds/NNS
./.
I/PRP
wonder/VBP
when/WRB
we/PRP
'll/MD
be/VB
able/JJ
to/TO
relax/VB
./.
9:53/CD
a.m/RB
./.
PANDA/NNP
:/:
Flesh/NN
goes/VBZ
to/TO
total/NN
alert/JJ
for/IN
flight/NN
or/CC
fight/NN
./.
Nausea/NN
seems/VBZ
a/DT
commonplace/JJ
symptom/NN
./.
Berkeley/NNP
very/RB
quiet/JJ
right/RB
now/RB
./.
I/PRP
walked/VBD
along/IN
Shattuck/NNP
between/IN
Delaware/NNP
and/CC
Cedar/NNP
at/IN
a/DT
few/JJ
minutes/NNS
before/IN
eight/CD
this/DT
morning/NN
./.
Next/JJ
to/TO
Chez/NNP
Panisse/NNP
a/DT
homeless/JJ
couple/NN
,/,
bundled/VBN
into/IN
a/DT
blue/JJ
sleeping/VBG
bag/NN
,/,
sat/VBD
up/IN
,/,
said/VBD
,/,
``/``
Good/JJ
morning/NN
''/''
and/CC
then/RB
the/DT
woman/NN
smiled/VBD
,/,
said/VBD
,/,
``/``
Is/VBZ
n't/RB
it/PRP
great/JJ
just/RB
to/TO
be/VB
alive/JJ
?/.
''/''
I/PRP
agreed/VBD
./.
It/PRP
is/VBZ
./.
Great/JJ
./.
Georgia-Pacific/NNP
Corp./NNP
,/,
exceeding/VBG
some/DT
analysts/NNS
'/POS
expectations/NNS
,/,
said/VBD
third-quarter/NN
earnings/NNS
rose/VBD
56/CD
%/NN
to/TO
$/$
178/CD
million/CD
,/,
or/CC
$/$
2.03/CD
a/DT
share/NN
,/,
from/IN
$/$
114/CD
million/CD
,/,
or/CC
$/$
1.19/CD
a/DT
share/NN
,/,
in/IN
the/DT
year-earlier/JJ
period/NN
./.
Sales/NNS
increased/VBD
10/CD
%/NN
to/TO
$/$
2.65/CD
billion/CD
from/IN
$/$
2.41/CD
billion/CD
./.
Per-share/JJ
earnings/NNS
were/VBD
enhanced/VBN
by/IN
the/DT
company/NN
's/POS
share/NN
buy-back/NN
program/NN
,/,
which/WDT
reduced/VBD
the/DT
average/JJ
shares/NNS
outstanding/JJ
to/TO
87.5/CD
million/CD
in/IN
the/DT
quarter/NN
from/IN
95.8/CD
million/CD
in/IN
the/DT
same/JJ
quarter/NN
of/IN
1988/CD
./.
With/IN
strong/JJ
prices/NNS
in/IN
the/DT
company/NN
's/POS
two/CD
major/JJ
areas/NNS
--/:
building/NN
products/NNS
as/RB
well/RB
as/IN
pulp/NN
and/CC
paper/NN
--/:
analysts/NNS
had/VBD
expected/VBN
a/DT
roaring/VBG
quarter/NN
./.
But/CC
the/DT
performance/NN
exceeded/VBD
some/DT
estimates/NNS
of/IN
around/IN
$/$
1.90/CD
a/DT
share/NN
./.
Fueling/VBG
the/DT
growth/NN
,/,
among/IN
other/JJ
things/NNS
,/,
were/VBD
higher-than-expected/JJ
prices/NNS
for/IN
certain/JJ
building/NN
products/NNS
./.
One/CD
reason/NN
:/:
efforts/NNS
to/TO
protect/VB
the/DT
spotted/JJ
owl/NN
led/VBD
to/TO
restrictions/NNS
on/IN
logging/VBG
in/IN
the/DT
Pacific/NNP
Northwest/NNP
,/,
constricting/VBG
supply/NN
and/CC
forcing/VBG
prices/NNS
up/IN
./.
Another/DT
reason/NN
:/:
strikes/NNS
,/,
both/DT
at/IN
Georgia-Pacific/NNP
and/CC
other/JJ
lumber/NN
companies/NNS
also/RB
cut/VBP
supplies/NNS
and/CC
raised/VBD
prices/NNS
,/,
analysts/NNS
said/VBD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Georgia-Pacific/NNP
's/POS
earnings/NNS
increased/VBD
49/CD
%/NN
to/TO
$/$
504/CD
million/CD
,/,
or/CC
$/$
5.58/CD
a/DT
share/NN
,/,
from/IN
$/$
338/CD
million/CD
,/,
or/CC
$/$
3.41/CD
a/DT
share/NN
./.
Sales/NNS
rose/VBD
11/CD
%/NN
to/TO
$/$
7.73/CD
billion/CD
from/IN
$/$
6.94/CD
billion/CD
./.
In/IN
composite/JJ
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
Trading/NNP
,/,
Georgia-Pacific/NNP
stock/NN
rose/VBD
$/$
1.25/CD
a/DT
share/NN
yesterday/NN
to/TO
close/VB
at/IN
$/$
58/CD
./.
The/DT
House/NNP
Public/NNP
Works/NNP
and/CC
Transportation/NNP
Committee/NNP
approved/VBD
a/DT
bill/NN
that/WDT
would/MD
give/VB
the/DT
Transportation/NNP
Department/NNP
power/NN
to/TO
block/VB
airline/NN
leveraged/JJ
buy-outs/NNS
,/,
despite/IN
a/DT
clear/JJ
veto/NN
threat/NN
from/IN
the/DT
Bush/NNP
administration/NN
./.
The/DT
23-5/CD
vote/NN
clears/VBZ
the/DT
way/NN
for/IN
consideration/NN
on/IN
the/DT
House/NNP
floor/NN
next/IN
week/NN
or/CC
the/DT
week/NN
after/IN
./.
Transportation/NNP
Secretary/NNP
Samuel/NNP
Skinner/NNP
,/,
in/IN
a/DT
letter/NN
to/TO
the/DT
committee/NN
,/,
warned/VBD
that/IN
he/PRP
would/MD
urge/VB
President/NNP
Bush/NNP
to/TO
veto/VB
the/DT
legislation/NN
if/IN
it/PRP
passed/VBD
Congress/NNP
./.
The/DT
Senate/NNP
Commerce/NNP
Committee/NNP
already/RB
has/VBZ
approved/VBN
similar/JJ
legislation/NN
./.
On/IN
Monday/NNP
,/,
a/DT
letter/NN
from/IN
Mr./NNP
Skinner/NNP
's/POS
deputy/NN
,/,
Elaine/NNP
Chao/NNP
,/,
said/VBD
the/DT
administration/NN
opposed/VBD
the/DT
legislation/NN
``/``
in/IN
its/PRP$
present/JJ
form/NN
./.
''/''
Some/DT
of/IN
the/DT
bill/NN
's/POS
supporters/NNS
had/VBD
taken/VBN
heart/NN
from/IN
the/DT
fact/NN
that/IN
the/DT
letter/NN
was/VBD
n't/RB
signed/VBN
by/IN
Mr./NNP
Skinner/NNP
and/CC
that/IN
it/PRP
did/VBD
n't/RB
contain/VB
a/DT
veto/NN
threat/NN
./.
The/DT
stepped-up/JJ
administration/NN
warnings/NNS
annoyed/VBD
some/DT
lawmakers/NNS
,/,
especially/RB
senior/JJ
Republicans/NNPS
who/WP
supported/VBD
the/DT
bill/NN
because/IN
they/PRP
thought/VBD
the/DT
Transportation/NNP
Department/NNP
favored/VBD
it/PRP
./.
``/``
We/PRP
backed/VBD
this/DT
bill/NN
because/IN
we/PRP
thought/VBD
it/PRP
would/MD
help/VB
Skinner/NNP
,/,
''/''
one/CD
Republican/NNP
said/VBD
,/,
``/``
and/CC
now/RB
we/PRP
're/VBP
out/IN
there/RB
dangling/VBG
in/IN
the/DT
wind/NN
./.
''/''
A/DT
few/JJ
weeks/NNS
ago/IN
,/,
Mr./NNP
Skinner/NNP
testified/VBD
before/IN
Congress/NNP
that/IN
it/PRP
would/MD
be/VB
``/``
cleaner/JJR
,/,
more/RBR
efficient/JJ
''/''
if/IN
he/PRP
had/VBD
authority/NN
to/TO
block/VB
buy-outs/NNS
in/IN
advance/NN
./.
But/CC
he/PRP
never/RB
took/VBD
an/DT
official/JJ
position/NN
on/IN
the/DT
bill/NN
and/CC
has/VBZ
steadfastly/RB
maintained/VBN
that/IN
he/PRP
already/RB
has/VBZ
enough/JJ
authority/NN
to/TO
deal/VB
with/IN
buy-outs/NNS
./.
Under/IN
the/DT
committee/NN
bill/NN
,/,
the/DT
Transportation/NN
secretary/NN
would/MD
have/VB
30/CD
days/NNS
,/,
and/CC
an/DT
additional/JJ
20/CD
days/NNS
if/IN
needed/VBN
,/,
to/TO
review/VB
any/DT
proposed/VBN
purchase/NN
of/IN
15/CD
%/NN
or/CC
more/JJR
of/IN
a/DT
major/JJ
U.S./NNP
airline/NN
's/POS
voting/NN
stock/NN
./.
The/DT
secretary/NN
would/MD
be/VB
required/VBN
to/TO
block/VB
an/DT
acquisition/NN
if/IN
he/PRP
concluded/VBD
that/IN
it/PRP
would/MD
so/RB
weaken/VB
an/DT
airline/NN
financially/RB
that/IN
it/PRP
would/MD
hurt/VB
safety/NN
or/CC
reduce/VB
the/DT
carrier/NN
's/POS
ability/NN
to/TO
compete/VB
,/,
or/CC
if/IN
it/PRP
gave/VBD
control/NN
to/TO
a/DT
foreign/JJ
interest/NN
./.
Although/IN
the/DT
legislation/NN
would/MD
apply/VB
to/TO
any/DT
acquisition/NN
of/IN
a/DT
major/JJ
airline/NN
,/,
it/PRP
is/VBZ
aimed/VBN
at/IN
transactions/NNS
financed/VBN
by/IN
large/JJ
amounts/NNS
of/IN
debt/NN
./.
Supporters/NNS
of/IN
the/DT
bill/NN
are/VBP
concerned/VBN
an/DT
airline/NN
might/MD
sacrifice/VB
costly/JJ
safety/NN
measures/NNS
in/IN
order/NN
to/TO
repay/VB
debt/NN
./.
The/DT
panel/NN
's/POS
action/NN
occurs/VBZ
in/IN
a/DT
politically/RB
charged/VBN
atmosphere/NN
surrounding/VBG
recent/JJ
buy-out/NN
proposals/NNS
,/,
their/PRP$
apparent/JJ
collapse/NN
and/CC
the/DT
volatile/JJ
conditions/NNS
in/IN
the/DT
stock/NN
market/NN
./.
``/``
It/PRP
became/VBD
apparent/JJ
in/IN
hearings/NNS
that/IN
there/EX
ought/MD
to/TO
be/VB
regulation/NN
of/IN
leveraged/JJ
buy-outs/NNS
of/IN
some/DT
sort/NN
,/,
''/''
Rep./NNP
James/NNP
Oberstar/NNP
D./NNP
,/,
Minn./NNP
chairman/NN
of/IN
the/DT
House/NNP
Aviation/NNP
Subcommittee/NNP
,/,
said/VBD
during/IN
the/DT
panel/NN
's/POS
deliberations/NNS
./.
``/``
I/PRP
do/VBP
n't/RB
believe/VB
in/IN
the/DT
airline/NN
business/NN
you/PRP
can/MD
be/VB
totally/RB
laissez-faire/FW
because/IN
of/IN
the/DT
high/JJ
degree/NN
of/IN
public/JJ
interest/NN
''/''
at/IN
stake/NN
./.
But/CC
Mr./NNP
Skinner/NNP
disagreed/VBD
,/,
calling/VBG
the/DT
legislation/NN
``/``
a/DT
retreat/NN
from/IN
the/DT
policy/NN
of/IN
deregulaton/NN
of/IN
the/DT
airline/NN
industry/NN
./.
''/''
In/IN
his/PRP$
letter/NN
to/TO
Committee/NNP
Chairman/NNP
Glenn/NNP
Anderson/NNP
D./NNP
,/,
Calif./NNP
the/DT
secretary/NN
also/RB
said/VBD
the/DT
bill/NN
``/``
would/MD
be/VB
at/IN
odds/NNS
with/IN
the/DT
administration/NN
's/POS
policies/NNS
welcoming/VBG
open/JJ
foreign/JJ
investment/NN
and/CC
market/NN
allocation/NN
of/IN
resources/NNS
./.
''/''
Currently/RB
,/,
the/DT
Transportation/NNP
Department/NNP
does/VBZ
n't/RB
have/VB
the/DT
authority/NN
to/TO
block/VB
a/DT
takeover/NN
in/IN
advance/NN
./.
However/RB
,/,
if/IN
the/DT
secretary/NN
concludes/VBZ
that/IN
a/DT
transaction/NN
has/VBZ
made/VBN
a/DT
carrier/NN
unfit/NN
to/TO
operate/VB
,/,
the/DT
department/NN
may/MD
revoke/VB
its/PRP$
certificate/NN
,/,
grounding/VBG
the/DT
airline/NN
./.
Such/JJ
authority/NN
is/VBZ
more/JJR
than/IN
adequate/JJ
,/,
say/VBP
opponents/NNS
of/IN
the/DT
legislation/NN
./.
But/CC
supporters/NNS
argue/VBP
that/IN
grounding/VBG
an/DT
airline/NN
is/VBZ
so/RB
drastic/JJ
that/IN
the/DT
department/NN
would/MD
hesitate/VB
doing/VBG
it/PRP
./.
The/DT
panel/NN
rejected/VBD
a/DT
proposal/NN
pushed/VBN
by/IN
AMR/NNP
Corp./NNP
,/,
the/DT
parent/NN
of/IN
American/NNP
Airlines/NNPS
,/,
to/TO
allow/VB
the/DT
Transportation/NN
secretary/NN
to/TO
block/VB
corporate/JJ
raiders/NNS
from/IN
waging/VBG
proxy/NN
fights/NNS
to/TO
oust/VB
boards/NNS
that/WDT
oppose/VBP
a/DT
leveraged/JJ
buy-out/NN
./.
It/PRP
also/RB
voted/VBD
down/IN
proposals/NNS
to/TO
give/VB
the/DT
secretary/NN
much/RB
more/JJR
discretion/NN
on/IN
whether/IN
to/TO
block/VB
a/DT
buy-out/NN
and/CC
to/TO
require/VB
the/DT
department/NN
to/TO
consider/VB
the/DT
impact/NN
of/IN
a/DT
buy-out/NN
on/IN
workers/NNS
./.
London/NNP
shares/NNS
rallied/VBD
to/TO
post/VB
strong/JJ
gains/NNS
after/IN
initial/JJ
fears/NNS
evaporated/VBD
that/IN
the/DT
California/NNP
earthquake/NN
would/MD
depress/VB
Wall/NNP
Street/NNP
prices/NNS
./.
Tokyo/NNP
stocks/NNS
,/,
which/WDT
rebounded/VBD
strongly/RB
Tuesday/NNP
,/,
extended/VBD
their/PRP$
gains/NNS
yesterday/NN
,/,
but/CC
most/RBS
other/JJ
Asian/JJ
and/CC
Pacific/JJ
markets/NNS
closed/VBD
sharply/RB
lower/JJR
./.
In/IN
London/NNP
,/,
the/DT
Financial/NNP
Times-Stock/NNP
Exchange/NNP
100-share/JJ
index/NN
jumped/VBD
34.6/CD
points/NNS
to/TO
close/VB
at/IN
its/PRP$
intraday/NN
high/JJ
of/IN
2170.1/CD
./.
The/DT
index/NN
was/VBD
under/IN
pressure/NN
for/IN
most/JJS
of/IN
the/DT
morning/NN
over/IN
concerns/NNS
that/IN
the/DT
effects/NNS
of/IN
Tuesday/NNP
night/NN
's/POS
major/JJ
earthquake/NN
in/IN
the/DT
San/NNP
Francisco/NNP
area/NN
would/MD
undermine/VB
the/DT
U.S./NNP
market/NN
./.
The/DT
mood/NN
changed/VBD
after/IN
dealers/NNS
reappraised/VBD
the/DT
direct/JJ
impact/NN
of/IN
the/DT
disaster/NN
on/IN
shares/NNS
and/CC
Wall/NNP
Street/NNP
rebounded/NN
from/IN
early/JJ
losses/NNS
./.
The/DT
Financial/NNP
Times/NNP
30-share/JJ
index/NN
settled/VBD
27.8/CD
points/NNS
higher/JJR
at/IN
1758.5/CD
./.
Volume/NN
was/VBD
449.3/CD
million/CD
shares/NNS
,/,
the/DT
slowest/JJS
of/IN
a/DT
hectic/JJ
week/NN
,/,
compared/VBN
with/IN
643.4/CD
million/CD
Tuesday/NNP
./.
U.K./NNP
composite/JJ
,/,
or/CC
non-life/JJ
,/,
insurers/NNS
,/,
which/WDT
some/DT
equity/NN
analysts/NNS
said/VBD
might/MD
be/VB
heavily/RB
hit/VBN
by/IN
the/DT
earthquake/NN
disaster/NN
,/,
helped/VBD
support/VB
the/DT
London/NNP
market/NN
by/IN
showing/VBG
only/JJ
narrow/JJ
losses/NNS
in/IN
early/JJ
trading/NN
./.
The/DT
insurers/NNS
'/POS
relative/JJ
resilience/NN
gave/VBD
the/DT
market/NN
time/NN
to/TO
reappraise/VB
the/DT
impact/NN
of/IN
the/DT
California/NNP
disaster/NN
on/IN
U.K./NNP
equities/NNS
,/,
dealers/NNS
said/VBD
./.
Dealers/NNS
said/VBD
the/DT
market/NN
still/RB
has/VBZ
n't/RB
shaken/VBN
off/IN
its/PRP$
nervousness/NN
after/IN
its/PRP$
bumpy/JJ
ride/NN
of/IN
the/DT
past/JJ
several/JJ
sessions/NNS
,/,
caused/VBN
by/IN
interest-rate/NN
increases/NNS
last/JJ
week/NN
and/CC
Wall/NNP
Street/NNP
's/POS
6.9/CD
%/NN
plunge/NN
Friday/NNP
./.
But/CC
technical/JJ
factors/NNS
,/,
including/VBG
modest/JJ
gains/NNS
in/IN
the/DT
value/NN
of/IN
the/DT
pound/NN
,/,
helped/VBD
draw/VB
buying/VBG
back/RB
into/IN
the/DT
market/NN
and/CC
reverse/VB
losses/NNS
posted/VBD
a/DT
day/NN
earlier/RBR
./.
Among/IN
composite/JJ
insurers/NNS
,/,
General/NNP
Accident/NNP
rose/VBD
10/CD
pence/NN
to/TO
#/#
10.03/CD
$/$
15.80/CD
a/DT
share/NN
,/,
Guardian/NNP
Royal/NNP
climbed/VBD
5/CD
to/TO
217/CD
pence/NN
,/,
Sun/NNP
Alliance/NNP
rose/VBD
3/CD
to/TO
290/CD
,/,
and/CC
Royal/NNP
Insurance/NNP
jumped/VBD
12/CD
to/TO
450/CD
./.
Life/NN
insurers/NNS
fared/VBD
similarly/RB
,/,
with/IN
Legal/NNP
&/CC
General/NNP
advancing/VBG
3/CD
to/TO
344/CD
,/,
although/IN
Prudential/NNP
fell/VBD
2/CD
to/TO
184/CD
1\/2/CD
./.
Pearl/NNP
Group/NNP
rose/VBD
5/CD
to/TO
628/CD
,/,
and/CC
Sun/NNP
Life/NNP
finished/VBD
unchanged/JJ
at/IN
#/#
10.98/CD
./.
Most/JJS
banking/NN
issues/NNS
retreated/VBN
after/IN
a/DT
sector/NN
downgrade/NN
by/IN
Warburg/NNP
Securities/NNPS
,/,
although/IN
National/NNP
Westminister/NNP
showed/VBD
strength/NN
on/IN
positive/JJ
comments/NNS
from/IN
brokerage/NN
firms/NNS
about/IN
its/PRP$
long-term/JJ
prospects/NNS
./.
NatWest/NNP
,/,
the/DT
most/RBS
actively/RB
traded/VBN
of/IN
the/DT
banks/NNS
,/,
finished/VBD
at/IN
300/CD
,/,
up/IN
1/CD
./.
B.A.T/NNP
Industries/NNPS
fell/VBD
in/IN
early/JJ
dealings/NNS
but/CC
recovered/VBD
to/TO
finish/VB
at/IN
754/CD
,/,
up/IN
5/CD
./.
Dealers/NNS
said/VBD
the/DT
market/NN
was/VBD
nervous/JJ
ahead/RB
of/IN
a/DT
special/JJ
B.A.T/NNP
holders/NNS
'/POS
meeting/NN
today/NN
./.
The/DT
session/NN
is/VBZ
to/TO
consider/VB
a/DT
defensive/JJ
plan/NN
to/TO
spin/VB
off/IN
assets/NNS
to/TO
fend/VB
off/IN
Sir/NNP
James/NNP
Goldsmith/NNP
's/POS
#/#
13.4/CD
billion/CD
bid/NN
for/IN
B.A.T/NNP
./.
The/DT
recent/JJ
stock/NN
market/NN
drop/NN
has/VBZ
shaken/VBN
confidence/NN
in/IN
the/DT
plan/NN
,/,
but/CC
dealers/NNS
said/VBD
the/DT
shares/NNS
fell/VBD
initially/RB
on/IN
questions/NNS
about/IN
whether/IN
Mr./NNP
Goldsmith/NNP
's/POS
highly/RB
leveraged/JJ
bid/NN
will/MD
come/VB
to/TO
fruition/NN
./.
Trading/NN
was/VBD
suspended/VBN
in/IN
WCRS/NNP
Group/NNP
,/,
a/DT
U.K./NNP
advertising/NN
concern/NN
,/,
pending/VBG
an/DT
announcement/NN
that/IN
it/PRP
is/VBZ
buying/VBG
the/DT
remaining/VBG
50/CD
%/NN
of/IN
France/NNP
's/POS
Carat/NNP
Holding/NNP
for/IN
2.02/CD
billion/CD
French/NNP
francs/NNS
$/$
318.7/CD
million/CD
commercial/JJ
and/CC
equity/NN
ties/NNS
with/IN
advertising/NN
group/NN
Eurocom/NNP
./.
Merchant/NN
banker/NN
Morgan/NNP
Grenfell/NNP
climbed/VBD
14/CD
to/TO
406/CD
on/IN
renewed/VBN
takeover/NN
speculation/NN
./.
S.G./NNP
Warburg/NNP
,/,
also/RB
mentioned/VBN
in/IN
the/DT
rumor/NN
mill/NN
,/,
jumped/VBD
14/CD
at/IN
to/TO
414/CD
./.
Jaguar/NNP
advanced/VBD
19/CD
to/TO
673/CD
as/IN
traders/NNS
contemplated/VBD
a/DT
potential/JJ
battle/NN
between/IN
General/NNP
Motors/NNPS
and/CC
Ford/NNP
Motor/NNP
for/IN
control/NN
of/IN
the/DT
U.K./NNP
luxury/NN
auto/NN
maker/NN
./.
Tokyo/NNP
's/POS
Nikkei/NNP
index/NN
of/IN
225/CD
issues/NNS
rose/VBD
111.48/CD
points/NNS
,/,
or/CC
0.32/CD
%/NN
,/,
to/TO
35107.56/CD
./.
The/DT
index/NN
gained/VBN
527.39/CD
Tuesday/NNP
./.
Volume/NN
was/VBD
estimated/VBN
at/IN
800/CD
million/CD
shares/NNS
,/,
compared/VBN
with/IN
678/CD
million/CD
Tuesday/NNP
./.
Declining/VBG
issues/NNS
outnumbered/VBD
advancers/NNS
505-455/CD
,/,
with/IN
172/CD
unchanged/JJ
./.
The/DT
Tokyo/NNP
Stock/NNP
Price/NNP
Index/NNP
of/IN
all/DT
issues/NNS
listed/VBN
in/IN
the/DT
first/JJ
section/NN
,/,
which/WDT
gained/VBD
41.76/CD
Tuesday/NNP
,/,
was/VBD
up/IN
0.24/CD
points/NNS
,/,
or/CC
0.01/CD
%/NN
,/,
at/IN
2642.88/CD
./.
In/IN
early/RB
trading/NN
in/IN
Tokyo/NNP
Thursday/NNP
,/,
the/DT
Nikkei/NNP
index/NN
rose/VBD
135.09/CD
points/NNS
to/TO
35242.65/CD
./.
On/IN
Wednesday/NNP
,/,
shares/NNS
were/VBD
pushed/VBN
up/IN
by/IN
index-related/JJ
buying/NN
on/IN
the/DT
part/NN
of/IN
investment/NN
trusts/NNS
as/RB
well/RB
as/IN
small/JJ
orders/NNS
from/IN
individuals/NNS
and/CC
corporations/NNS
,/,
traders/NNS
said/VBD
./.
Institutions/NNS
,/,
meanwhile/RB
,/,
stepped/VBD
back/RB
to/TO
the/DT
sidelines/NNS
as/IN
the/DT
direction/NN
of/IN
U.S./NNP
interest/NN
rates/NNS
remained/VBD
unclear/JJ
./.
The/DT
uncertainty/NN
was/VBD
multiplied/VBN
by/IN
the/DT
persistent/JJ
strength/NN
of/IN
the/DT
dollar/NN
,/,
traders/NNS
said/VBD
,/,
and/CC
by/IN
the/DT
U.S./NNP
trade/NN
deficit/NN
,/,
which/WDT
widened/VBD
by/IN
31/CD
%/NN
in/IN
August/NNP
from/IN
the/DT
previous/JJ
month/NN
./.
Traders/NNS
and/CC
analysts/NNS
said/VBD
they/PRP
did/VBD
n't/RB
see/VB
any/DT
effect/NN
on/IN
Tokyo/NNP
stocks/NNS
from/IN
the/DT
California/NNP
earthquake/NN
./.
The/DT
impact/NN
on/IN
Japanese/JJ
insurers/NNS
and/CC
property/NN
owners/NNS
with/IN
interests/NNS
in/IN
the/DT
San/NNP
Francisco/NNP
area/NN
is/VBZ
still/RB
being/VBG
assessed/VBN
,/,
they/PRP
said/VBD
./.
Buying/VBG
was/VBD
scattered/VBN
across/IN
a/DT
wide/JJ
range/NN
of/IN
issues/NNS
,/,
making/VBG
the/DT
session/NN
fairly/RB
characterless/JJ
,/,
traders/NNS
said/VBD
./.
With/IN
uncertainty/NN
still/RB
hanging/VBG
over/IN
interest/NN
rates/NNS
and/CC
the/DT
dollar/NN
,/,
the/DT
market/NN
failed/VBD
to/TO
find/VB
a/DT
focus/NN
that/WDT
might/MD
lead/VB
to/TO
further/JJ
investor/NN
commitments/NNS
,/,
they/PRP
said/VBD
./.
Some/DT
traders/NNS
said/VBD
the/DT
popularity/NN
of/IN
issues/NNS
that/WDT
gained/VBD
yesterday/NN
wo/MD
n't/RB
last/VB
long/RB
,/,
as/IN
investors/NNS
will/MD
rotate/VB
their/PRP$
buying/VBG
choices/NNS
over/IN
the/DT
short/JJ
term/NN
./.
Interest/NN
rate-sensitive/JJ
shares/NNS
such/JJ
as/IN
steel/NN
,/,
construction/NN
and/CC
electric/JJ
utility/NN
companies/NNS
,/,
which/WDT
rose/VBD
early/RB
in/IN
the/DT
week/NN
,/,
saw/VBD
their/PRP$
advance/NN
weaken/VB
yesterday/NN
./.
Traders/NNS
said/VBD
these/DT
issues/NNS
need/VBP
large-volume/JJ
buying/NN
to/TO
push/VB
up/IN
their/PRP$
prices/NNS
,/,
so/RB
substantial/JJ
gains/NNS
are/VBP
n't/RB
likely/JJ
unless/IN
institutional/JJ
investors/NNS
participate/VBP
./.
An/DT
outstanding/JJ
issue/NN
in/IN
yesterday/NN
's/POS
session/NN
was/VBD
Mitsubishi/NNP
Rayon/NNP
,/,
which/WDT
surged/VBD
95/CD
to/TO
905/CD
yen/NN
$/$
6.34/CD
a/DT
share/NN
./.
Its/PRP$
popularity/NN
was/VBD
due/JJ
to/TO
speculation/NN
about/IN
the/DT
strong/JJ
earnings/NNS
potential/JJ
of/IN
a/DT
new/JJ
type/NN
of/IN
plastic/JJ
wrap/NN
for/IN
household/NN
use/NN
,/,
a/DT
trader/NN
at/IN
County/NNP
Natwest/NNP
Securities/NNPS
Japan/NNP
said/VBD
./.
Some/DT
laggard/JJ
food/NN
issues/NNS
attracted/VBD
bargain-hunters/NNS
,/,
traders/NNS
said/VBD
./.
Kirin/NNP
Brewery/NNP
was/VBD
up/IN
100/CD
at/IN
2,000/CD
,/,
and/CC
Ajinomoto/NNP
gained/VBD
70/CD
to/TO
2,840/CD
./.
Pharmaceuticals/NNS
were/VBD
mostly/RB
higher/JJR
,/,
with/IN
SS/NNP
Pharmaceutical/NNP
gaining/VBG
140/CD
to/TO
1,980/CD
./.
Shares/NNS
closed/VBD
lower/JJR
in/IN
other/JJ
major/JJ
Asian/JJ
and/CC
Pacific/JJ
markets/NNS
,/,
including/VBG
Sydney/NNP
,/,
Hong/NNP
Kong/NNP
,/,
Singapore/NNP
,/,
Taipei/NNP
,/,
Wellington/NNP
,/,
Seoul/NNP
and/CC
Manila/NNP
./.
Most/JJS
of/IN
those/DT
markets/NNS
had/VBD
rebounded/VBN
the/DT
day/NN
before/IN
from/IN
Monday/NNP
's/POS
slide/NN
./.
But/CC
unlike/IN
the/DT
Tokyo/NNP
exchange/NN
,/,
they/PRP
failed/VBD
to/TO
extend/VB
the/DT
rise/NN
to/TO
a/DT
second/JJ
session/NN
./.
Elsewhere/RB
,/,
prices/NNS
surged/VBD
for/IN
a/DT
second/JJ
day/NN
in/IN
Frankfurt/NNP
,/,
closed/VBD
higher/RBR
in/IN
Zurich/NNP
,/,
Stockholm/NNP
and/CC
Amsterdam/NNP
and/CC
were/VBD
broadly/RB
lower/JJR
in/IN
Milan/NNP
,/,
Paris/NNP
and/CC
Brussels/NNP
./.
South/JJ
African/JJ
gold/NN
stocks/NNS
ended/VBD
marginally/RB
firmer/JJR
./.
In/IN
Brussels/NNP
,/,
it/PRP
was/VBD
the/DT
first/JJ
trading/NN
day/NN
for/IN
most/JJS
major/JJ
shares/NNS
since/IN
stocks/NNS
tumbled/VBD
on/IN
Wall/NNP
Street/NNP
Friday/NNP
./.
Trading/NN
had/VBD
been/VBN
impeded/VBN
by/IN
a/DT
major/JJ
computer/NN
failure/NN
that/WDT
took/VBD
place/NN
before/IN
the/DT
start/NN
of/IN
Monday/NNP
's/POS
session/NN
./.
Here/RB
are/VBP
price/NN
trends/NNS
on/IN
the/DT
world/NN
's/POS
major/JJ
stock/NN
markets/NNS
,/,
as/IN
calculated/VBN
by/IN
Morgan/NNP
Stanley/NNP
Capital/NNP
International/NNP
Perspective/NNP
,/,
Geneva/NNP
./.
To/TO
make/VB
them/PRP
directly/RB
comparable/JJ
,/,
each/DT
index/NN
is/VBZ
based/VBN
on/IN
the/DT
close/NN
of/IN
1969/CD
equaling/VBG
100/CD
./.
The/DT
percentage/NN
change/NN
is/VBZ
since/IN
year-end/NN
./.
Housing/NN
construction/NN
sank/VBD
in/IN
September/NNP
to/TO
its/PRP$
lowest/JJS
level/NN
since/IN
the/DT
last/JJ
recession/NN
,/,
the/DT
Commerce/NNP
Department/NNP
reported/VBD
./.
Work/NN
began/VBD
on/IN
homes/NNS
and/CC
apartments/NNS
at/IN
an/DT
annual/JJ
rate/NN
of/IN
1,263,000/CD
units/NNS
last/JJ
month/NN
,/,
down/IN
5.2/CD
%/NN
from/IN
August/NNP
,/,
the/DT
department/NN
said/VBD
./.
The/DT
September/NNP
decline/NN
followed/VBD
an/DT
even/RB
steeper/JJR
drop/NN
of/IN
6.2/CD
%/NN
in/IN
August/NNP
and/CC
left/VBD
housing/NN
starts/NNS
at/IN
their/PRP$
weakest/JJS
since/IN
October/NNP
1982/CD
,/,
when/WRB
the/DT
country/NN
was/VBD
nearing/VBG
the/DT
end/NN
of/IN
a/DT
recession/NN
./.
Originally/RB
the/DT
department/NN
had/VBD
reported/VBN
the/DT
August/NNP
decline/NN
as/IN
5/CD
%/NN
./.
The/DT
numbers/NNS
suggest/VBP
that/IN
the/DT
housing/NN
industry/NN
is/VBZ
still/RB
suffering/VBG
the/DT
effects/NNS
of/IN
the/DT
Federal/NNP
Reserve/NNP
's/POS
battle/NN
against/IN
inflation/NN
./.
The/DT
industry/NN
had/VBD
shown/VBN
signs/NNS
of/IN
recovery/NN
this/DT
summer/NN
,/,
after/IN
the/DT
central/JJ
bank/NN
began/VBD
to/TO
relax/VB
its/PRP$
clamp/NN
on/IN
credit/NN
,/,
allowing/VBG
interest/NN
rates/NNS
to/TO
drop/VB
a/DT
bit/NN
after/IN
pushing/VBG
them/PRP
up/IN
for/IN
a/DT
year/NN
./.
Sales/NNS
of/IN
new/JJ
homes/NNS
rose/VBD
and/CC
inventories/NNS
of/IN
houses/NNS
,/,
which/WDT
had/VBD
been/VBN
climbing/VBG
,/,
dropped/VBD
./.
But/CC
last/JJ
month/NN
new/JJ
construction/NN
in/IN
all/DT
types/NNS
of/IN
homes/NNS
waned/VBD
,/,
from/IN
single-family/NN
houses/NNS
to/TO
large/JJ
apartment/NN
complexes/NNS
./.
``/``
It/PRP
's/VBZ
pretty/RB
much/RB
weak/JJ
across/IN
the/DT
board/NN
,/,
''/''
said/VBD
Martin/NNP
Regalia/NNP
,/,
chief/NN
economist/NN
of/IN
the/DT
National/NNP
Council/NNP
of/IN
Savings/NNP
Institutions/NNPS
./.
Mr./NNP
Regalia/NNP
said/VBD
the/DT
industry/NN
may/MD
be/VB
reluctant/JJ
to/TO
step/VB
up/IN
building/VBG
at/IN
the/DT
moment/NN
for/IN
fear/NN
the/DT
inventories/NNS
of/IN
unsold/JJ
homes/NNS
will/MD
increase/VB
again/RB
./.
Another/DT
reason/NN
for/IN
the/DT
weakness/NN
,/,
he/PRP
said/VBD
,/,
may/MD
be/VB
that/IN
mortgage/NN
rates/NNS
have/VBP
hit/VBN
a/DT
plateau/NN
since/IN
they/PRP
began/VBD
edging/VBG
down/IN
after/IN
a/DT
peak/NN
in/IN
March/NNP
./.
In/IN
August/NNP
,/,
rates/NNS
on/IN
30-year/JJ
fixed-rate/JJ
mortgages/NNS
started/VBD
creeping/VBG
up/IN
a/DT
bit/NN
,/,
but/CC
they/PRP
inched/VBD
down/IN
again/RB
through/IN
September/NNP
./.
``/``
Rates/NNS
have/VBP
n't/RB
really/RB
peeled/VBN
off/IN
that/DT
much/JJ
,/,
''/''
Mr./NNP
Regalia/NNP
said/VBD
./.
``/``
We/PRP
've/VBP
kind/NN
of/IN
settled/VBN
now/RB
into/IN
an/DT
interest-rate/JJ
environment/NN
that/WDT
's/VBZ
fairly/RB
high/JJ
./.
''/''
Work/NN
was/VBD
begun/VBN
on/IN
single/JJ
family/NN
homes/NNS
--/:
the/DT
core/NN
of/IN
the/DT
housing/NN
market/NN
--/:
at/IN
an/DT
annual/JJ
rate/NN
of/IN
971,000/CD
in/IN
September/NNP
,/,
a/DT
drop/NN
of/IN
2.1/CD
%/NN
from/IN
the/DT
previous/JJ
month/NN
./.
That/WDT
followed/VBD
a/DT
3.3/CD
%/NN
decline/NN
in/IN
August/NNP
./.
Construction/NN
of/IN
apartments/NNS
and/CC
other/JJ
multi-family/JJ
dwellings/NNS
slipped/VBD
2.2/CD
%/NN
to/TO
an/DT
annual/JJ
rate/NN
of/IN
1,022,000/CD
following/VBG
a/DT
3.5/CD
%/NN
decline/NN
in/IN
August/NNP
./.
The/DT
number/NN
of/IN
building/NN
permits/NNS
issued/VBN
for/IN
future/JJ
construction/NN
dropped/VBD
2.4/CD
%/NN
to/TO
a/DT
1,296,000/CD
annual/JJ
rate/NN
after/IN
rising/VBG
3.7/CD
%/NN
in/IN
August/NNP
./.
All/PDT
the/DT
numbers/NNS
were/VBD
adjusted/VBN
for/IN
normal/JJ
seasonal/JJ
variations/NNS
in/IN
building/NN
activity/NN
./.
The/DT
housing/NN
starts/VBZ
numbers/NNS
,/,
however/RB
,/,
are/VBP
one/CD
of/IN
the/DT
least/JJS
precise/JJ
of/IN
the/DT
government/NN
's/POS
economic/JJ
indicators/NNS
and/CC
are/VBP
often/RB
revised/VBN
significantly/RB
as/IN
more/JJR
information/NN
is/VBZ
collected/VBN
./.
Shearson/NNP
Lehman/NNP
Hutton/NNP
Holdings/NNP
Inc./NNP
posted/VBD
a/DT
sharp/JJ
third-quarter/NN
turnaround/NN
from/IN
a/DT
year/NN
earlier/RBR
,/,
but/CC
net/JJ
income/NN
would/MD
have/VB
dropped/VBN
from/IN
the/DT
second/JJ
quarter/NN
without/IN
a/DT
$/$
37/CD
million/CD
after-tax/JJ
gain/NN
./.
The/DT
securities/NNS
firm/NN
posted/VBD
third-quarter/NN
net/NN
of/IN
$/$
66/CD
million/CD
,/,
or/CC
64/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
a/DT
restated/VBN
year-earlier/JJ
loss/NN
of/IN
$/$
3/CD
million/CD
,/,
or/CC
11/CD
cents/NNS
a/DT
share/NN
./.
Revenue/NN
climbed/VBD
25/CD
%/NN
to/TO
$/$
3.3/CD
billion/CD
from/IN
$/$
2.6/CD
billion/CD
./.
The/DT
latest/JJS
period/NN
included/VBD
the/DT
gain/NN
,/,
which/WDT
was/VBD
$/$
77/CD
million/CD
before/IN
tax/NN
,/,
from/IN
the/DT
previously/RB
announced/VBN
sale/NN
of/IN
the/DT
institutional/JJ
money/NN
management/NN
business/NN
of/IN
Lehman/NNP
Management/NNP
Co/NNP
./.
The/DT
1988/CD
period/NN
was/VBD
restated/VBN
from/IN
net/JJ
income/NN
of/IN
$/$
8/CD
million/CD
to/TO
correct/VB
an/DT
overstatement/NN
in/IN
the/DT
company/NN
's/POS
Boston/NNP
Co./NNP
subsidiary/NN
./.
In/IN
the/DT
1989/CD
second/JJ
quarter/NN
,/,
Shearson/NNP
had/VBD
net/JJ
income/NN
of/IN
$/$
55/CD
million/CD
,/,
or/CC
54/CD
cents/NNS
a/DT
share/NN
./.
An/DT
average/JJ
102.5/CD
million/CD
common/JJ
shares/NNS
were/VBD
outstanding/JJ
in/IN
the/DT
latest/JJS
quarter/NN
,/,
up/IN
from/IN
87.1/CD
million/CD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
Shearson/NNP
shares/NNS
lost/VBD
37.5/CD
cents/NNS
to/TO
$/$
18.125/CD
./.
The/DT
company/NN
said/VBD
the/DT
improved/VBN
performance/NN
from/IN
a/DT
year/NN
ago/IN
reflects/VBZ
higher/JJR
commissions/NNS
and/CC
revenue/NN
from/IN
marketmaking/NN
and/CC
trading/NN
for/IN
its/PRP$
own/JJ
account/NN
./.
Commission/NN
revenue/NN
was/VBD
$/$
522/CD
million/CD
,/,
up/IN
49/CD
%/NN
./.
But/CC
industrywide/JJ
trading/NN
activity/NN
slowed/VBD
in/IN
September/NNP
as/IN
institutional/JJ
investors/NNS
turned/VBD
cautious/JJ
and/CC
individuals/NNS
continued/VBD
to/TO
shy/VB
away/RB
from/IN
the/DT
market/NN
./.
Investment/NN
banking/NN
revenue/NN
fell/VBD
32/CD
%/NN
to/TO
$/$
205/CD
million/CD
,/,
in/IN
part/NN
reflecting/VBG
the/DT
continued/VBN
slowdown/NN
of/IN
the/DT
underwriting/NN
business/NN
./.
In/IN
the/DT
nine/CD
months/NNS
,/,
net/NN
fell/VBD
3/CD
%/NN
to/TO
$/$
106/CD
million/CD
,/,
or/CC
98/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
110/CD
million/CD
,/,
or/CC
$/$
1.05/CD
a/DT
share/NN
./.
Revenue/NN
advanced/VBD
26/CD
%/NN
to/TO
$/$
9.6/CD
billion/CD
from/IN
$/$
7.6/CD
billion/CD
./.
Two/CD
major/JJ
drug/NN
companies/NNS
posted/VBD
strong/JJ
third-quarter/NN
earnings/NNS
,/,
in/IN
line/NN
with/IN
profits/NNS
already/RB
reported/VBN
by/IN
industry/NN
leaders/NNS
and/CC
analysts/NNS
'/POS
expectations/NNS
./.
But/CC
Pfizer/NNP
Inc./NNP
,/,
based/VBN
in/IN
New/NNP
York/NNP
,/,
reported/VBD
flat/JJ
earnings/NNS
./.
Schering-Plough/NNP
Corp./NNP
,/,
based/VBN
in/IN
Madison/NNP
,/,
N.J./NNP
,/,
reported/VBD
a/DT
21/CD
%/NN
rise/NN
in/IN
earnings/NNS
as/IN
American/NNP
Home/NNP
Products/NNPS
Corp./NNP
of/IN
New/NNP
York/NNP
posted/VBD
an/DT
11/CD
%/NN
increase/NN
in/IN
net/NN
./.
American/NNP
Home/NNP
Products/NNPS
American/NNP
Home/NNP
Products/NNPS
said/VBD
sales/NNS
and/CC
earnings/NNS
for/IN
the/DT
third/JJ
quarter/NN
and/CC
nine/CD
months/NNS
were/VBD
at/IN
record/NN
levels/NNS
./.
Sales/NNS
for/IN
the/DT
third/JJ
quarter/NN
increased/VBD
6.5/CD
%/NN
to/TO
$/$
1.51/CD
billion/CD
from/IN
$/$
1.42/CD
billion/CD
./.
Sales/NNS
of/IN
health-care/JJ
products/NNS
increased/VBD
6/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
based/VBN
in/IN
part/NN
on/IN
strong/JJ
sales/NNS
of/IN
prescription/NN
drugs/NNS
such/JJ
as/IN
Premarin/NNP
,/,
an/DT
estrogen-replacement/NN
drug/NN
,/,
and/CC
sales/NNS
of/IN
the/DT
company/NN
's/POS
infant/NN
formula/NN
./.
American/NNP
Home/NNP
Products/NNPS
said/VBD
net/JJ
income/NN
benefited/VBD
from/IN
a/DT
``/``
lower/JJR
effective/JJ
tax/NN
rate/NN
,/,
''/''
reflecting/VBG
a/DT
reduction/NN
of/IN
foreign/JJ
tax/NN
rates/NNS
,/,
and/CC
additional/JJ
operations/NNS
in/IN
Puerto/NNP
Rico/NNP
./.
Net/NN
also/RB
was/VBD
aided/VBN
by/IN
a/DT
gain/NN
on/IN
the/DT
sale/NN
of/IN
the/DT
company/NN
's/POS
equity/NN
interests/NNS
in/IN
South/NNP
Africa/NNP
effective/JJ
Sept./NNP
1/CD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
American/NNP
Home/NNP
Products/NNPS
closed/VBD
at/IN
$/$
102.25/CD
a/DT
share/NN
,/,
down/IN
75/CD
cents/NNS
./.
Pfizer/NNP
Pfizer/NNP
said/VBD
third-quarter/NN
sales/NNS
increased/VBD
4/CD
%/NN
to/TO
$/$
1.44/CD
billion/CD
from/IN
$/$
1.38/CD
billion/CD
./.
The/DT
company/NN
said/VBD
net/JJ
income/NN
was/VBD
flat/JJ
because/IN
of/IN
investment/NN
in/IN
research/NN
and/CC
development/NN
and/CC
costs/NNS
related/VBN
to/TO
launches/NNS
of/IN
several/JJ
products/NNS
./.
The/DT
company/NN
said/VBD
the/DT
dollar/NN
's/POS
continued/VBN
strengthening/VBG
reduced/VBD
world-wide/JJ
sales/NNS
growth/NN
by/IN
three/CD
percentage/NN
points/NNS
./.
Pfizer/NNP
posted/VBD
its/PRP$
largest/JJS
gains/NNS
in/IN
healthcare/NN
sales/NNS
,/,
up/IN
3/CD
%/NN
,/,
and/CC
consumer/NN
products/NNS
,/,
up/IN
23/CD
%/NN
./.
Sales/NNS
by/IN
the/DT
specialty/NN
chemicals/NNS
and/CC
materials/NNS
science/NN
segments/NNS
were/VBD
flat/JJ
,/,
and/CC
sales/NNS
by/IN
the/DT
agriculture/NN
segment/NN
declined/VBD
5/CD
%/NN
./.
In/IN
the/DT
health-care/JJ
segment/NN
,/,
pharmaceutical/JJ
sales/NNS
increased/VBD
4/CD
%/NN
and/CC
sales/NNS
of/IN
hospital/NN
products/NNS
increased/VBD
1/CD
%/NN
./.
During/IN
the/DT
quarter/NN
,/,
Pfizer/NNP
received/VBD
federal/JJ
approval/NN
of/IN
Procardia/NNP
XL/NNP
,/,
a/DT
calcium/NN
channel/NN
blocker/NN
approved/VBN
for/IN
both/DT
angina/NN
and/CC
hypertension/NN
,/,
and/CC
Monorail/NNP
Piccolino/NNP
,/,
used/VBN
to/TO
open/VB
obstructed/VBN
coronary/JJ
arteries/NNS
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
Pfizer/NNP
closed/VBD
at/IN
$/$
67.75/CD
a/DT
share/NN
,/,
up/IN
75/CD
cents/NNS
./.
Schering-Plough/NNP
Schering-Plough/NNP
said/VBD
sales/NNS
gained/VBD
2.7/CD
%/NN
to/TO
$/$
743.7/CD
million/CD
from/IN
$/$
724.4/CD
million/CD
./.
In/IN
the/DT
period/NN
,/,
the/DT
company/NN
completed/VBD
the/DT
sale/NN
of/IN
its/PRP$
European/JJ
cosmetics/NNS
businesses/NNS
,/,
sold/VBD
a/DT
majority/NN
interest/NN
in/IN
its/PRP$
Brazilian/JJ
affiliate/NN
,/,
and/CC
announced/VBD
the/DT
reorganization/NN
of/IN
its/PRP$
over-the-counter/JJ
drug/NN
businesses/NNS
into/IN
a/DT
new/JJ
unit/NN
,/,
Schering-Plough/NNP
Health/NNP
Care/NNP
Products/NNPS
./.
These/DT
actions/NNS
did/VBD
n't/RB
affect/VB
results/NNS
because/IN
the/DT
gain/NN
on/IN
the/DT
sale/NN
of/IN
the/DT
European/JJ
cosmetics/NNS
businesses/NNS
was/VBD
offset/VBN
by/IN
provisions/NNS
relating/VBG
to/TO
the/DT
Brazil/NNP
divestiture/NN
and/CC
drug/NN
restructuring/NN
./.
U.S./NNP
pharmaceutical/JJ
sales/NNS
rose/VBD
15/CD
%/NN
,/,
led/VBN
by/IN
allergy/NN
,/,
asthma/NN
and/CC
cold/JJ
products/NNS
;/:
dermatological/JJ
products/NNS
;/:
anti-infectives/NNS
and/CC
anti-cancer/JJ
products/NNS
;/:
and/CC
cardiovascular/JJ
products/NNS
./.
World-wide/JJ
consumer/NN
product/NN
sales/NNS
declined/VBD
12/CD
%/NN
,/,
primarily/RB
because/IN
of/IN
the/DT
European/JJ
cosmetics/NNS
sale/NN
./.
Significantly/RB
lower/JJR
sales/NNS
of/IN
`/``
Stay/NNP
Trim/NNP
'/''
diet/NN
aids/NNS
also/RB
were/VBD
a/DT
factor/NN
in/IN
the/DT
drop/NN
./.
The/DT
Maybelline/NNP
beauty/NN
product/NN
line/NN
had/VBD
higher/JJR
sales/NNS
following/VBG
a/DT
sluggish/JJ
first/JJ
half/NN
./.
In/IN
Big/NNP
Board/NNP
composite/JJ
trading/NN
,/,
Schering-Plough/NNP
shares/NNS
fell/VBD
75/CD
cents/NNS
to/TO
close/VB
at/IN
$/$
74.125/CD
./.
Swedish/JJ
auto/NN
and/CC
aerospace/NN
concern/NN
Saab-Scania/NNP
AB/NNP
said/VBD
it/PRP
received/VBD
a/DT
250/CD
million/CD
krona/NN
$/$
39/CD
million/CD
order/NN
from/IN
Swiss/NNP
Crossair/NNP
,/,
one/CD
of/IN
Europe/NNP
's/POS
leading/VBG
regional/JJ
air/NN
companies/NNS
,/,
for/IN
five/CD
Saab/NNP
340B/NNP
turboprop/NN
commuter/NN
aircraft/NN
./.
It/PRP
is/VBZ
quite/RB
unfortunate/JJ
that/IN
you/PRP
failed/VBD
so/RB
miserably/RB
in/IN
reporting/VBG
the/DT
Hurricane/NNP
Hugo/NNP
disaster/NN
./.
Your/PRP$
Sept./NNP
27/CD
page-one/NN
article/NN
``/``
Charleston/NNP
Lost/VBD
Quite/RB
a/DT
Lot/NN
to/TO
Hugo/NNP
,/,
Especially/RB
Gentility/NN
''/''
leaves/VBZ
the/DT
impression/NN
that/IN
the/DT
storm/NN
was/VBD
little/RB
more/JJR
than/IN
an/DT
inconvenience/NN
./.
The/DT
damage/NN
reported/VBD
focused/VBN
on/IN
a/DT
select/JJ
few/JJ
who/WP
owned/VBD
irreplaceable/JJ
historic/JJ
homes/NNS
on/IN
the/DT
Battery/NNP
./.
Not/RB
mentioned/VBN
were/VBD
the/DT
50,000/CD
people/NNS
rendered/VBD
homeless/JJ
,/,
and/CC
the/DT
more/RBR
than/IN
200,000/CD
out/IN
of/IN
work/NN
for/IN
an/DT
indeterminable/JJ
period/NN
;/:
the/DT
$/$
1/CD
billion-plus/CD
in/IN
losses/NNS
to/TO
homes/NNS
and/CC
personal/JJ
property/NN
on/IN
the/DT
barrier/NN
islands/NNS
;/:
the/DT
near/JJ
long-term/JJ
impact/NN
on/IN
the/DT
state/NN
's/POS
largest/JJS
industry/NN
,/,
tourism/NN
,/,
not/RB
to/TO
mention/VB
the/DT
human/JJ
suffering/NN
./.
In/IN
centering/VBG
on/IN
the/DT
disruption/NN
of/IN
a/DT
few/JJ
proud/JJ
local/JJ
customs/NNS
such/JJ
as/IN
the/DT
historic/JJ
homes/NNS
tour/NN
and/CC
the/DT
damage/NN
to/TO
the/DT
antiquities/NNS
,/,
your/PRP$
reporter/NN
served/VBD
to/TO
only/RB
perpetuate/VB
an/DT
outdated/VBN
and/CC
stereotypically/RB
provincial/JJ
view/NN
of/IN
this/DT
otherwise/RB
thriving/VBG
port/JJ
city/NN
./.
The/DT
damage/NN
will/MD
undoubtedly/RB
prove/VB
to/TO
be/VB
one/CD
of/IN
the/DT
epic/NN
human/JJ
and/CC
economic/JJ
disasters/NNS
of/IN
the/DT
decade/NN
in/IN
this/DT
country/NN
./.
David/NNP
M./NNP
Carroll/NNP
Columbia/NNP
,/,
S.C/NNP
./.
Your/PRP$
story/NN
was/VBD
tasteless/JJ
and/CC
insensitive/JJ
./.
Depicting/VBG
the/DT
people/NNS
of/IN
a/DT
traumatized/VBN
city/NN
reeling/VBG
from/IN
a/DT
disaster/NN
of/IN
unprecedented/JJ
proportions/NNS
was/VBD
at/IN
the/DT
very/RB
best/JJS
ludicrous/JJ
under/IN
the/DT
circumstances/NNS
./.
Your/PRP$
narrow/JJ
focus/NN
appears/VBZ
to/TO
be/VB
a/DT
contrived/JJ
attempt/NN
to/TO
show/VB
the/DT
people/NNS
of/IN
that/DT
historic/JJ
city/NN
to/TO
be/VB
doddering/JJ
fools/NNS
./.
You/PRP
had/VBD
to/TO
have/VB
been/VBN
blind/JJ
not/RB
to/TO
see/VB
the/DT
scenario/NN
there/RB
for/IN
what/WP
it/PRP
was/VBD
and/CC
is/VBZ
and/CC
will/MD
continue/VB
to/TO
be/VB
for/IN
months/NNS
and/CC
even/JJ
years/NNS
--/:
a/DT
part/NN
of/IN
South/NNP
Carolina/NNP
that/WDT
has/VBZ
sustained/VBN
a/DT
blow/NN
that/IN
the/DT
Red/NNP
Cross/NNP
expects/VBZ
will/MD
cost/VB
that/DT
organization/NN
alone/RB
some/DT
$/$
38/CD
million/CD
./.
William/NNP
C./NNP
Barksdale/NNP
Jr/NNP
./.
Columbia/NNP
,/,
S.C/NNP
./.
Charleston/NNP
is/VBZ
historic/JJ
and/CC
aristocratic/JJ
,/,
as/RB
your/PRP$
reporter/NN
said/VBD
,/,
but/CC
not/RB
haughty/JJ
,/,
as/IN
he/PRP
suggested/VBD
./.
Charlestonians/NNS
are/VBP
instead/RB
indomitable/JJ
and/CC
have/VBP
contributed/VBN
mightily/RB
to/TO
the/DT
culture/NN
and/CC
history/NN
of/IN
our/PRP$
country/NN
for/IN
more/RBR
than/IN
300/CD
years/NNS
./.
I/PRP
suggest/VBP
your/PRP$
reporter/NN
see/VB
Charleston/NNP
next/JJ
spring/NN
in/IN
its/PRP$
full/JJ
glory/NN
./.
William/NNP
C./NNP
Stuart/NNP
III/NNP
Silver/NNP
Spring/NNP
,/,
Md/NNP
./.
Affiliated/NNP
Bankshares/NNPS
of/IN
Colorado/NNP
Inc./NNP
said/VBD
it/PRP
agreed/VBD
to/TO
sell/VB
its/PRP$
10/CD
%/NN
interest/NN
in/IN
Rocky/NNP
Mountain/NNP
Bankcard/NNP
Systems/NNPS
for/IN
$/$
18.5/CD
million/CD
to/TO
Colorado/NNP
National/NNP
Bank/NNP
of/IN
Denver/NNP
and/CC
Central/NNP
Bank/NNP
of/IN
Denver/NNP
./.
Colorado/NNP
National/NNP
is/VBZ
a/DT
unit/NN
of/IN
Colorado/NNP
National/NNP
Bankshares/NNPS
Inc./NNP
and/CC
Central/NNP
is/VBZ
a/DT
unit/NN
of/IN
First/NNP
Bank/NNP
System/NNP
of/IN
Minneapolis/NNP
./.
Affiliated/VBN
said/VBD
it/PRP
expects/VBZ
to/TO
record/VB
a/DT
pretax/NN
gain/NN
of/IN
about/IN
$/$
18.5/CD
million/CD
from/IN
the/DT
sale/NN
of/IN
the/DT
credit-card/NN
business/NN
,/,
which/WDT
should/MD
more/RBR
than/IN
offset/VBN
any/DT
reduction/NN
in/IN
the/DT
carrying/VBG
value/NN
of/IN
real/JJ
estate/NN
and/CC
real-estate/NN
loans/NNS
on/IN
its/PRP$
books/NNS
./.
The/DT
U.S./NNP
Export-Import/NNP
Bank/NNP
tentatively/RB
decided/VBD
to/TO
guarantee/VB
commercial/JJ
bank/NN
financing/NN
for/IN
the/DT
purchase/NN
of/IN
two/CD
Boeing/NNP
Co./NNP
767/CD
airliners/NNS
by/IN
Avianca/NNP
,/,
Colombia/NNP
's/POS
international/JJ
airline/NN
,/,
at/IN
a/DT
cost/NN
of/IN
about/IN
$/$
150/CD
million/CD
./.
The/DT
loan/NN
guarantee/NN
would/MD
amount/VB
to/TO
about/IN
$/$
127.5/CD
million/CD
,/,
or/CC
85/CD
%/NN
of/IN
the/DT
cost/NN
of/IN
the/DT
aircraft/NN
./.
Because/IN
of/IN
the/DT
size/NN
of/IN
the/DT
proposed/VBN
loan/NN
guarantee/NN
,/,
the/DT
Ex-Im/NNP
Bank/NNP
's/POS
preliminary/JJ
commitment/NN
is/VBZ
subject/JJ
to/TO
review/VB
by/IN
the/DT
House/NNP
and/CC
Senate/NNP
Banking/NNP
committees/NNS
./.
Ex-Im/NNP
Bank/NNP
officials/NNS
said/VBD
this/DT
review/NN
process/NN
currently/RB
is/VBZ
under/IN
way/NN
./.
Sebastian/NNP
Guzman/NNP
Cabrera/NNP
took/VBD
over/IN
the/DT
oil/NN
workers/NNS
union/NN
,/,
Mexico/NNP
's/POS
most/JJS
powerful/JJ
labor/NN
organization/NN
,/,
only/RB
last/JJ
January/NNP
./.
But/CC
even/RB
in/IN
that/DT
short/JJ
time/NN
Mr./NNP
Guzman/NNP
Cabrera/NNP
has/VBZ
become/VBN
as/IN
controversial/JJ
in/IN
his/PRP$
own/JJ
way/NN
as/IN
his/PRP$
deposed/VBN
predecessor/NN
,/,
Joaquin/NNP
Hernandez/NNP
Galicia/NNP
,/,
known/VBN
as/IN
La/NNP
Quina/NNP
./.
President/NNP
Carlos/NNP
Salinas/NNP
de/IN
Gortari/NNP
used/VBD
the/DT
army/NN
to/TO
oust/VB
La/NNP
Quina/NNP
,/,
who/WP
reigned/VBD
for/IN
28/CD
years/NNS
over/IN
a/DT
graft-riddled/JJ
empire/NN
that/WDT
made/VBD
state-run/JJ
Petroleos/NNP
Mexicanos/NNP
,/,
or/CC
Pemex/NNP
,/,
one/CD
of/IN
the/DT
world/NN
's/POS
most/RBS
inefficient/JJ
oil/NN
companies/NNS
./.
Now/RB
,/,
Mr./NNP
Guzman/NNP
Cabrera/NNP
is/VBZ
facing/VBG
accusations/NNS
that/IN
he/PRP
's/VBZ
as/RB
much/JJ
a/DT
company/NN
man/NN
as/IN
La/NNP
Quina/NNP
was/VBD
a/DT
crook/NN
./.
In/IN
recent/JJ
contract/NN
negotiations/NNS
with/IN
Pemex/NNP
management/NN
,/,
Mr./NNP
Guzman/NNP
Cabrera/NNP
accepted/VBD
major/JJ
concessions/NNS
that/WDT
greatly/RB
curtail/VBP
the/DT
union/NN
's/POS
role/NN
in/IN
subcontracting/NN
,/,
long/RB
a/DT
source/NN
of/IN
millions/NNS
of/IN
dollars/NNS
in/IN
illicit/JJ
earnings/NNS
./.
And/CC
with/IN
the/DT
quiet/JJ
pragmatism/NN
of/IN
Mr./NNP
Guzman/NNP
Cabrera/NNP
replacing/VBG
the/DT
prickly/JJ
populism/NN
of/IN
La/NNP
Quina/NNP
,/,
government/NN
technocrats/NNS
have/VBP
been/VBN
given/VBN
a/DT
free/JJ
hand/NN
to/TO
open/VB
the/DT
petrochemical/NN
sector/NN
to/TO
wider/JJR
private/JJ
and/CC
foreign/JJ
investment/NN
./.
Mr./NNP
Guzman/NNP
Cabrera/NNP
's/POS
new/JJ
order/NN
has/VBZ
n't/RB
arrived/VBN
without/IN
resistance/NN
./.
Brawls/NNS
between/IN
union/NN
factions/NNS
still/RB
erupt/VB
at/IN
Pemex/NNP
installations/NNS
./.
Leftist/JJ
leader/NN
Cuauhtemoc/NNP
Cardenas/NNP
publicly/RB
questioned/VBD
Mr./NNP
Guzman/NNP
Cabrera/NNP
's/POS
``/``
moral/JJ
quality/NN
,/,
''/''
suggesting/VBG
he/PRP
is/VBZ
part/NN
of/IN
a/DT
conspiracy/NN
to/TO
turn/VB
over/IN
the/DT
country/NN
's/POS
oil/NN
,/,
a/DT
symbol/NN
of/IN
Mexican/JJ
nationalism/NN
,/,
to/TO
foreigners/NNS
./.
The/DT
61-year-old/JJ
Mr./NNP
Guzman/NNP
Cabrera/NNP
takes/VBZ
such/JJ
criticisms/NNS
in/IN
stride/NN
./.
``/``
This/DT
is/VBZ
n't/RB
a/DT
new/JJ
kind/NN
of/IN
union/NN
leadership/NN
,/,
it/PRP
's/VBZ
a/DT
new/JJ
Mexico/NNP
./.
We/PRP
're/VBP
no/RB
longer/RB
afraid/JJ
of/IN
associating/VBG
with/IN
private/JJ
or/CC
foreign/JJ
capital/NN
,/,
''/''
he/PRP
says/VBZ
./.
Pemex/NNP
,/,
which/WDT
produces/VBZ
40/CD
%/NN
of/IN
government/NN
revenue/NN
,/,
desperately/RB
needs/VBZ
new/JJ
investment/NN
./.
Since/IN
world/NN
oil/NN
prices/NNS
collapsed/VBD
in/IN
1982/CD
,/,
the/DT
government/NN
has/VBZ
siphoned/VBN
Pemex/NNP
's/POS
coffers/NNS
to/TO
make/VB
payments/NNS
on/IN
Mexico/NNP
's/POS
$/$
97/CD
billion/CD
foreign/JJ
debt/NN
./.
Little/JJ
money/NN
has/VBZ
been/VBN
returned/VBN
to/TO
upgrade/VB
Pemex/NNP
's/POS
aging/VBG
facilities/NNS
./.
While/IN
the/DT
government/NN
drains/VBZ
Pemex/NNP
from/IN
above/JJ
,/,
the/DT
union/NN
has/VBZ
drained/VBN
it/PRP
from/IN
below/IN
./.
A/DT
bloated/JJ
payroll/NN
and/CC
pervasive/JJ
graft/NN
caused/VBD
Pemex/NNP
's/POS
operating/VBG
costs/NNS
to/TO
balloon/VB
to/TO
95/CD
cents/NNS
of/IN
each/DT
$/$
1/CD
in/IN
sales/NNS
,/,
far/RB
above/IN
the/DT
industry/NN
norm/NN
./.
The/DT
declines/NNS
in/IN
investment/NN
and/CC
efficiency/NN
explain/VBP
in/IN
part/NN
why/WRB
Mexico/NNP
has/VBZ
been/VBN
importing/VBG
gasoline/NN
this/DT
year/NN
./.
Some/DT
projections/NNS
show/VBP
Mexico/NNP
importing/VBG
crude/NN
by/IN
the/DT
end/NN
of/IN
the/DT
century/NN
,/,
barring/VBG
an/DT
overhaul/NN
of/IN
operations/NNS
./.
``/``
Whatever/WDT
you/PRP
tried/VBD
to/TO
change/VB
,/,
whether/IN
it/PRP
was/VBD
cutting/VBG
costs/NNS
or/CC
attracting/VBG
new/JJ
partners/NNS
,/,
the/DT
big/JJ
obstacle/NN
was/VBD
the/DT
old/JJ
union/NN
leadership/NN
,/,
''/''
says/VBZ
oil/NN
consultant/NN
George/NNP
Baker/NNP
./.
Enter/VB
Mr./NNP
Guzman/NNP
Cabrera/NNP
,/,
who/WP
has/VBZ
a/DT
clear/JJ
understanding/NN
of/IN
where/WRB
union/NN
leaders/NNS
fit/VBP
in/IN
the/DT
pro-enterprise/JJ
regime/NN
of/IN
President/NNP
Salinas/NNP
./.
``/``
I/PRP
'm/VBP
the/DT
secretary-general/NN
,/,
if/IN
there/EX
is/VBZ
one/NN
,/,
''/''
he/PRP
says/VBZ
,/,
greeting/VBG
a/DT
visitor/NN
to/TO
his/PRP$
office/NN
./.
Beginning/VBG
as/IN
a/DT
laborer/NN
in/IN
a/DT
refinery/NN
,/,
Mr./NNP
Guzman/NNP
Cabrera/NNP
put/VBP
in/IN
more/RBR
than/IN
40/CD
years/NNS
at/IN
Pemex/NNP
before/IN
being/VBG
pushed/VBN
into/IN
retirement/NN
by/IN
La/NNP
Quina/NNP
after/IN
a/DT
dispute/NN
two/CD
years/NNS
ago/IN
./.
Though/IN
he/PRP
also/RB
long/RB
benefited/VBN
from/IN
the/DT
system/NN
built/VBN
by/IN
La/NNP
Quina/NNP
,/,
Mr./NNP
Guzman/NNP
Cabrera/NNP
says/VBZ
union/NN
perks/NNS
had/VBD
simply/RB
gotten/VBN
out/IN
of/IN
hand/NN
./.
They/PRP
are/VBP
``/``
at/IN
the/DT
base/NN
of/IN
all/DT
of/IN
the/DT
problems/NNS
of/IN
corruption/NN
,/,
''/''
he/PRP
says/VBZ
./.
Thus/RB
,/,
in/IN
recent/JJ
contract/NN
negotiations/NNS
,/,
Mr./NNP
Guzman/NNP
Cabrera/NNP
gave/VBD
up/IN
the/DT
union/NN
's/POS
right/NN
to/TO
assign/VB
40/CD
%/NN
of/IN
all/DT
of/IN
Pemex/NNP
's/POS
outside/JJ
contracts/NNS
--/:
an/DT
enormous/JJ
source/NN
of/IN
kickbacks/NNS
./.
The/DT
union/NN
also/RB
ceded/VBD
the/DT
2/CD
%/NN
commission/NN
it/PRP
had/VBD
received/VBN
on/IN
all/DT
Pemex/NNP
maintenance/NN
contracts/NNS
./.
The/DT
union/NN
will/MD
keep/VB
a/DT
2/CD
%/NN
commission/NN
on/IN
construction/NN
projects/NNS
./.
The/DT
new/JJ
contract/NN
also/RB
eliminates/VBZ
the/DT
$/$
15/CD
monthly/JJ
coupon/NN
,/,
good/JJ
only/RB
at/IN
union-owned/JJ
grocery/NN
stores/NNS
,/,
that/WDT
was/VBD
part/NN
of/IN
the/DT
salary/NN
of/IN
every/DT
worker/NN
,/,
from/IN
roughneck/NN
to/TO
chief/NN
executive/NN
./.
About/IN
9,800/CD
technical/JJ
workers/NNS
,/,
notably/RB
chemists/NNS
and/CC
lawyers/NNS
,/,
were/VBD
switched/VBN
to/TO
non-union/JJ
status/NN
./.
Also/RB
,/,
because/IN
of/IN
its/PRP$
reduced/VBN
capital/NN
budget/NN
,/,
Pemex/NNP
has/VBZ
phased/VBN
out/IN
about/IN
50,000/CD
transitory/JJ
construction/NN
workers/NNS
,/,
reducing/VBG
the/DT
work/NN
force/NN
to/TO
about/IN
140,000/CD
,/,
the/DT
union/NN
leader/NN
says/VBZ
./.
Mr./NNP
Guzman/NNP
Cabrera/NNP
says/VBZ
the/DT
union/NN
's/POS
sacrifices/NNS
will/MD
be/VB
offset/VBN
by/IN
a/DT
wage/NN
and/CC
benefit/NN
package/NN
that/WDT
amounts/VBZ
to/TO
a/DT
22/CD
%/NN
increase/NN
in/IN
compensation/NN
./.
But/CC
Pemex/NNP
managers/NNS
are/VBP
the/DT
ones/NNS
most/RBS
thrilled/VBN
by/IN
the/DT
contract/NN
./.
``/``
We/PRP
are/VBP
retaking/VBG
the/DT
instruments/NNS
of/IN
administration/NN
,/,
''/''
says/VBZ
Raul/NNP
Robles/NNP
,/,
a/DT
Pemex/NNP
subdirector/NN
./.
Pemex/NNP
officials/NNS
would/MD
n't/RB
say/VB
how/WRB
much/JJ
money/NN
the/DT
new/JJ
contract/NN
would/MD
save/VB
the/DT
company/NN
,/,
but/CC
one/CD
previous/JJ
government/NN
estimate/NN
pegged/VBD
savings/NNS
at/IN
around/IN
$/$
500/CD
million/CD
a/DT
year/NN
./.
Pemex/NNP
's/POS
customers/NNS
also/RB
are/VBP
pleased/VBN
with/IN
the/DT
company/NN
's/POS
new/JJ
spirit/NN
./.
Grupo/NNP
Desc/NNP
,/,
a/DT
big/JJ
conglomerate/NN
,/,
has/VBZ
long/RB
depended/VBN
on/IN
Pemex/NNP
petrochemicals/NNS
to/TO
produce/VB
plastic/JJ
packing/NN
material/NN
./.
But/CC
when/WRB
the/DT
Pemex/NNP
plant/NN
shut/VBD
down/IN
for/IN
an/DT
annual/JJ
overhaul/NN
,/,
it/PRP
would/MD
never/RB
give/VB
notice/VB
to/TO
its/PRP$
customers/NNS
./.
``/``
The/DT
capriciousness/NN
would/MD
completely/RB
disrupt/VB
our/PRP$
operations/NNS
,/,
''/''
says/VBZ
Ernesto/NNP
Vega/NNP
Velasco/NNP
,/,
Desc/NNP
's/POS
finance/NN
director/NN
./.
This/DT
year/NN
,/,
for/IN
the/DT
first/JJ
time/NN
,/,
Desc/NNP
and/CC
other/JJ
customers/NNS
were/VBD
consulted/VBN
well/RB
in/IN
advance/NN
of/IN
the/DT
Pemex/NNP
plant/NN
's/POS
shutdown/NN
to/TO
ensure/VB
minimal/JJ
inconvenience/NN
./.
Taming/VBG
the/DT
union/NN
complements/VBZ
previous/JJ
moves/NNS
by/IN
the/DT
government/NN
to/TO
attract/VB
private/JJ
investment/NN
in/IN
petrochemicals/NNS
,/,
which/WDT
Mexico/NNP
has/VBZ
been/VBN
forced/VBN
to/TO
import/VB
in/IN
large/JJ
quantities/NNS
in/IN
recent/JJ
years/NNS
./.
In/IN
May/NNP
,/,
the/DT
government/NN
unveiled/VBD
new/JJ
foreign/JJ
investment/NN
regulations/NNS
that/WDT
create/VBP
special/JJ
trusts/NNS
allowing/VBG
foreigners/NNS
,/,
long/RB
limited/VBN
to/TO
a/DT
40/CD
%/NN
stake/NN
in/IN
secondary/JJ
petrochemical/NN
companies/NNS
,/,
to/TO
own/VB
up/IN
to/TO
100/CD
%/NN
./.
Later/RB
,/,
the/DT
government/NN
reclassified/VBD
several/JJ
basic/JJ
petrochemicals/NNS
as/IN
secondary/JJ
products/NNS
./.
But/CC
Pemex/NNP
's/POS
courtship/NN
with/IN
private/JJ
companies/NNS
,/,
and/CC
especially/RB
foreign/JJ
ones/NNS
,/,
is/VBZ
controversial/JJ
in/IN
a/DT
country/NN
where/WRB
oil/NN
has/VBZ
been/VBN
a/DT
symbol/NN
of/IN
national/JJ
sovereignty/NN
since/IN
foreign/JJ
oil/NN
holdings/NNS
were/VBD
nationalized/VBN
in/IN
1938/CD
./.
``/``
They/PRP
are/VBP
preparing/VBG
the/DT
workers/NNS
for/IN
what/WP
's/VBZ
coming/VBG
:/:
foreign/JJ
control/NN
,/,
''/''
wrote/VBD
Heberto/NNP
Castillo/NNP
,/,
a/DT
leftist/JJ
leader/NN
./.
Mr./NNP
Guzman/NNP
Cabrera/NNP
and/CC
government/NN
officials/NNS
insist/VBP
that/IN
foreigners/NNS
will/MD
be/VB
limited/VBN
to/TO
investing/VBG
in/IN
secondary/JJ
petroleum/NN
products/NNS
./.
But/CC
the/DT
new/JJ
union/NN
leader/NN
makes/VBZ
no/DT
apologies/NNS
for/IN
Pemex/NNP
's/POS
more/RBR
outward-looking/JJ
attitude/NN
./.
``/``
If/IN
we/PRP
do/VBP
not/RB
integrate/VB
into/IN
this/DT
new/JJ
world/NN
of/IN
interdependence/NN
,/,
sooner/RBR
or/CC
later/RB
we/PRP
're/VBP
going/VBG
to/TO
become/VB
victims/NNS
of/IN
our/PRP$
own/JJ
isolation/NN
,/,
''/''
he/PRP
says/VBZ
./.
Couple/NN
Counseling/NN
Grows/VBZ
to/TO
Defuse/VB
Stress/NN
MORE/JJR
EXECUTIVES/NNS
and/CC
their/PRP$
spouses/NNS
are/VBP
seeking/VBG
counseling/NN
as/IN
work/NN
and/CC
family/NN
pressures/NNS
mount/VBP
./.
Some/DT
employers/NNS
initiate/VBP
referrals/NNS
,/,
especially/RB
if/IN
work/NN
problems/NNS
threaten/VBP
a/DT
top/JJ
manager/NN
's/POS
job/NN
./.
Many/JJ
couples/NNS
``/``
are/VBP
like/IN
ships/NNS
passing/VBG
in/IN
the/DT
night/NN
,/,
''/''
a/DT
communications/NNS
gulf/NN
that/WDT
sparks/VBZ
problems/NNS
on/IN
the/DT
job/NN
and/CC
at/IN
home/NN
,/,
says/VBZ
psychologist/NN
Harry/NNP
Levinson/NNP
./.
His/PRP$
Levinson/NNP
Institute/NNP
in/IN
Belmont/NNP
,/,
Mass./NNP
,/,
has/VBZ
seen/VBN
in/IN
recent/JJ
years/NNS
a/DT
doubling/NN
in/IN
the/DT
number/NN
of/IN
executives/NNS
and/CC
spouses/NNS
at/IN
its/PRP$
weeklong/JJ
counseling/NN
program/NN
./.
Employers/NNS
foot/VBP
the/DT
bill/NN
,/,
he/PRP
says/VBZ
,/,
figuring/VBG
what/WP
's/VBZ
good/JJ
for/IN
the/DT
couple/NN
is/VBZ
good/JJ
for/IN
the/DT
company/NN
./.
One/CD
East/NNP
Coast/NNP
manufacturing/VBG
executive/NN
,/,
faced/VBN
with/IN
a/DT
job/NN
transfer/NN
his/PRP$
wife/NN
resented/VBD
,/,
found/VBD
that/IN
counseling/NN
helped/VBD
them/PRP
both/DT
come/VB
to/TO
grips/NNS
with/IN
the/DT
move/NN
./.
And/CC
the/DT
vice/NN
president/NN
of/IN
a/DT
large/JJ
Midwestern/JJ
company/NN
realized/VBD
that/IN
an/DT
abrasive/JJ
temperament/NN
threatened/VBD
his/PRP$
career/NN
when/WRB
his/PRP$
wife/NN
confided/VBD
that/DT
similar/JJ
behavior/NN
at/IN
home/NN
harmed/VBD
their/PRP$
marriage/NN
./.
More/JJR
dual-career/JJ
couples/NNS
also/RB
are/VBP
getting/VBG
help/NN
,/,
with/IN
men/NNS
increasingly/RB
bringing/VBG
their/PRP$
working/VBG
wives/NNS
for/IN
joint/JJ
counseling/NN
./.
``/``
The/DT
level/NN
of/IN
stress/NN
for/IN
a/DT
woman/NN
is/VBZ
often/RB
so/RB
high/JJ
,/,
it/PRP
's/VBZ
the/DT
husband/NN
who/WP
says/VBZ
,/,
`/``
I/PRP
'm/VBP
worried/JJ
about/IN
her/PRP
,/,
'/''
''/''
says/VBZ
psychologist/NN
Marjorie/NNP
Hansen/NNP
Shaevitz/NNP
./.
Her/PRP$
Institute/NNP
for/IN
Family/NNP
and/CC
Work/NNP
Relationships/NNPS
in/IN
La/NNP
Jolla/NNP
,/,
Calif./NNP
,/,
has/VBZ
noted/VBN
a/DT
doubling/NN
in/IN
the/DT
number/NN
of/IN
couples/NNS
seeking/VBG
help/NN
the/DT
past/JJ
two/CD
years/NNS
./.
``/``
No/DT
matter/NN
how/WRB
competent/JJ
and/CC
smart/JJ
you/PRP
both/DT
are/VBP
,/,
the/DT
relationship/NN
almost/RB
certainly/RB
will/MD
erode/VB
if/IN
you/PRP
do/VBP
n't/RB
have/VB
time/NN
to/TO
talk/VB
,/,
to/TO
have/VB
fun/NN
and/CC
to/TO
be/VB
sexual/JJ
,/,
''/''
says/VBZ
Ms./NNP
Shaevitz/NNP
./.
She/PRP
urges/VBZ
client/NN
couples/NNS
to/TO
begin/VB
a/DT
``/``
detoxification/NN
''/''
period/NN
,/,
purging/VBG
social/JJ
and/CC
other/JJ
nonproductive/JJ
activities/NNS
and/CC
setting/VBG
time/NN
apart/RB
for/IN
themselves/PRP
./.
``/``
Putting/VBG
those/DT
times/NNS
on/IN
the/DT
calendar/NN
,/,
''/''
she/PRP
says/VBZ
,/,
``/``
is/VBZ
as/RB
important/JJ
as/IN
remembering/VBG
business/NN
appointments/NNS
./.
''/''
Power/NNP
of/IN
Suggestion/NNP
Stronger/NNP
in/IN
Japan/NNP
HERE/RB
'S/VBZ
ONE/CD
more/JJR
explanation/NN
for/IN
why/WRB
Japan/NNP
is/VBZ
a/DT
tough/JJ
industrial/JJ
competitor/NN
:/:
Two/CD
of/IN
three/CD
Japanese/JJ
employees/NNS
submit/VBP
suggestions/NNS
to/TO
save/VB
money/NN
,/,
increase/VB
efficiency/NN
and/CC
boost/VB
morale/NN
,/,
while/IN
only/RB
8/CD
%/NN
of/IN
American/JJ
workers/NNS
do/VBP
./.
And/CC
the/DT
Japanese/NNP
make/VBP
far/RB
more/JJR
suggestions/NNS
--/:
2,472/CD
per/IN
100/CD
eligible/JJ
employees/NNS
vs./CC
only/RB
13/CD
per/IN
100/CD
employees/NNS
in/IN
the/DT
Data/NNS
for/IN
1987/CD
from/IN
the/DT
National/NNP
Association/NNP
of/IN
Suggestion/NNP
Systems/NNPS
and/CC
the/DT
Japan/NNP
Human/NNP
Relations/NNPS
Association/NNP
also/RB
indicate/VBP
that/IN
Japanese/JJ
employers/NNS
adopt/VBP
four/CD
of/IN
five/CD
suggestions/NNS
,/,
while/IN
their/PRP$
U.S./NNP
counterparts/NNS
accept/VBP
just/RB
one/CD
in/IN
four/CD
./.
In/IN
Japan/NNP
,/,
small/JJ
suggestions/NNS
are/VBP
encouraged/VBN
./.
Each/DT
new/JJ
employee/NN
is/VBZ
expected/VBN
to/TO
submit/VB
four/CD
daily/RB
in/IN
the/DT
first/JJ
few/JJ
months/NNS
on/IN
the/DT
job/NN
./.
U.S./NNP
companies/NNS
tend/VBP
to/TO
favor/VB
suggestions/NNS
``/``
that/WDT
go/VBP
for/IN
the/DT
home/NN
runs/NNS
,/,
''/''
says/VBZ
Gary/NNP
Floss/NNP
,/,
vice/NN
president/NN
of/IN
corporate/JJ
quality/NN
at/IN
Control/NNP
Data/NNP
Corp/NNP
./.
That/DT
helps/VBZ
explain/VB
why/WRB
American/JJ
employers/NNS
grant/VBP
an/DT
average/JJ
award/NN
of/IN
$/$
604.72/CD
per/IN
suggestion/NN
,/,
while/IN
Japan/NNP
's/POS
payment/NN
is/VBZ
$/$
3.23/CD
./.
Still/RB
,/,
suggestions/NNS
'/POS
net/JJ
savings/NNS
per/IN
100/CD
employees/NNS
is/VBZ
$/$
274,475/CD
in/IN
Japan/NNP
vs./CC
$/$
24,891/CD
in/IN
the/DT
U.S/NNP
./.
U.S./NNP
companies/NNS
developing/VBG
management/NN
teams/NNS
are/VBP
wrestling/VBG
with/IN
how/WRB
to/TO
handle/VB
individual/JJ
suggestion/NN
systems/NNS
./.
Control/NNP
Data/NNP
,/,
for/IN
one/CD
,/,
plays/VBZ
down/IN
its/PRP$
employee/NN
suggestion/NN
program/NN
because/IN
it/PRP
favors/VBZ
the/DT
team-management/NN
focus/NN
./.
Merger/NNP
Fallout/NNP
:/:
Beware/VB
Employee/NN
Dishonesty/NN
CORPORATE/JJ
security/NN
directors/NNS
increasingly/RB
worry/VBP
that/DT
merger/NN
mania/NN
spawns/VBZ
a/DT
rise/NN
in/IN
employee/NN
dishonesty/NN
./.
A/DT
Security/NNP
magazine/NN
survey/NN
places/VBZ
the/DT
effect/NN
of/IN
takeovers/NNS
and/CC
buy-outs/NNS
among/IN
the/DT
industry/NN
's/POS
10/CD
biggest/JJS
challenges/NNS
./.
``/``
If/IN
it/PRP
causes/VBZ
management/NN
to/TO
take/VB
their/PRP$
eye/NN
off/IN
the/DT
ball/NN
,/,
inventory/NN
shrinkage/NN
is/VBZ
going/VBG
to/TO
be/VB
affected/VBN
,/,
''/''
says/VBZ
Lewis/NNP
Shealy/NNP
,/,
vice/NN
president/NN
for/IN
loss/NN
prevention/NN
at/IN
Marshall/NNP
Field/NNP
's/POS
,/,
the/DT
department/NN
store/NN
chain/NN
./.
A/DT
separate/JJ
study/NN
of/IN
the/DT
extent/NN
of/IN
employee/NN
misconduct/NN
linked/VBD
general/JJ
job/NN
satisfaction/NN
to/TO
property/NN
loss/NN
./.
Co-author/NN
Richard/NNP
Hollinger/NNP
cites/VBZ
what/WP
happened/VBD
at/IN
one/CD
family-owned/JJ
company/NN
absorbed/VBN
by/IN
a/DT
foreign/JJ
giant/NN
./.
Pilferage/NN
climbed/VBD
dramatically/RB
as/IN
many/JJ
angry/JJ
employees/NNS
``/``
felt/VBD
abandoned/VBN
by/IN
the/DT
former/JJ
owners/NNS
,/,
''/''
says/VBZ
the/DT
University/NNP
of/IN
Florida/NNP
sociologist/NN
./.
But/CC
top/JJ
management/NN
should/MD
watch/VB
for/IN
other/JJ
tell-tale/NN
signs/NNS
of/IN
employee/NN
misdeeds/NNS
,/,
like/IN
expense-account/NN
fudging/NN
and/CC
phone/NN
misuse/NN
./.
Security/NN
consultant/NN
Dennis/NNP
Dalton/NNP
of/IN
Ventura/NNP
,/,
Calif./NNP
,/,
thinks/VBZ
mergers/NNS
often/RB
trigger/VBP
longer/JJR
lunch/NN
hours/NNS
and/CC
increased/VBN
absenteeism/NN
,/,
conduct/NN
which/WDT
can/MD
sap/VB
the/DT
bottom/NN
line/NN
more/JJR
than/IN
thefts/NNS
./.
New/JJ
management/NN
can/MD
take/VB
several/JJ
steps/NNS
to/TO
reduce/VB
dishonesty/NN
./.
Most/RBS
important/JJ
,/,
experts/NNS
say/VBP
,/,
is/VBZ
to/TO
show/VB
that/IN
a/DT
company/NN
's/POS
ethical/JJ
tone/NN
is/VBZ
set/VBN
at/IN
the/DT
top/NN
./.
Mr./NNP
Dalton/NNP
also/RB
recommends/VBZ
that/IN
the/DT
chief/NN
executive/NN
establish/VB
a/DT
rumor/NN
control/NN
center/NN
and/CC
move/VB
swiftly/RB
to/TO
bolster/VB
morale/NN
./.
Consultant/NN
John/NNP
Keller/NNP
of/IN
Southlake/NNP
,/,
Texas/NNP
,/,
urges/VBZ
that/IN
top/JJ
management/NN
adopt/VB
a/DT
``/``
tough/JJ
hands-on/JJ
approach/NN
''/''
with/IN
very/RB
tight/JJ
controls/NNS
and/CC
monitoring/NN
./.
And/CC
security/NN
authority/NN
Robert/NNP
L./NNP
Duston/NNP
favors/VBZ
disciplining/VBG
all/DT
employees/NNS
who/WP
cheat/VBP
./.
Firms/NNS
Walk/VBP
Fine/JJ
Line/NN
In/IN
Distributing/VBG
Profits/NNS
ARE/VBP
CORPORATE/JJ
profits/NNS
distributed/VBN
fairly/RB
?/.
A/DT
survey/NN
by/IN
Sirota/NNP
,/,
Alper/NNP
&/CC
Pfau/NNP
,/,
a/DT
New/NNP
York/NNP
consulting/VBG
firm/NN
,/,
underscores/VBZ
the/DT
difficulty/NN
for/IN
top/JJ
management/NN
in/IN
satisfying/VBG
employees/NNS
and/CC
investors/NNS
on/IN
that/DT
score/NN
./.
Nearly/RB
seven/CD
of/IN
10/CD
investors/NNS
think/VBP
companies/NNS
reinvest/VBP
``/``
too/RB
little/JJ
''/''
of/IN
their/PRP$
profits/NNS
in/IN
the/DT
business/NN
./.
And/CC
half/PDT
the/DT
employees/NNS
surveyed/VBN
think/VBP
companies/NNS
dole/VBP
out/IN
too/RB
little/JJ
to/TO
them/PRP
./.
But/CC
both/DT
see/VBP
a/DT
common/JJ
enemy/NN
:/:
About/IN
66/CD
%/NN
of/IN
employees/NNS
and/CC
73/CD
%/NN
of/IN
investors/NNS
think/VBP
senior/JJ
managers/NNS
get/VBP
too/RB
big/JJ
a/DT
slice/NN
of/IN
the/DT
profit/NN
pie/NN
./.
Bank/NNP
of/IN
New/NNP
York/NNP
Co./NNP
said/VBD
it/PRP
agreed/VBD
in/IN
principle/NN
to/TO
acquire/VB
the/DT
credit-card/NN
business/NN
of/IN
Houston-based/JJ
First/NNP
City/NNP
Bancorp./NNP
of/IN
Texas/NNP
for/IN
between/IN
$/$
130/CD
million/CD
and/CC
$/$
134/CD
million/CD
./.
The/DT
move/NN
,/,
subject/JJ
to/TO
a/DT
definitive/JJ
agreement/NN
,/,
is/VBZ
part/NN
of/IN
a/DT
trend/NN
by/IN
big-city/NN
banks/NNS
that/WDT
have/VBP
been/VBN
buying/VBG
up/IN
credit-card/NN
portfolios/NNS
to/TO
expand/VB
their/PRP$
business/NN
./.
Just/RB
last/JJ
month/NN
,/,
a/DT
Bank/NNP
of/IN
New/NNP
York/NNP
subsidiary/NN
agreed/VBD
to/TO
buy/VB
the/DT
credit-card/NN
operation/NN
of/IN
Dreyfus/NNP
Corp./NNP
's/POS
Dreyfus/NNP
Consumer/NNP
Bank/NNP
for/IN
$/$
168/CD
million/CD
,/,
a/DT
transaction/NN
that/WDT
is/VBZ
expected/VBN
to/TO
be/VB
completed/VBN
by/IN
the/DT
end/NN
of/IN
the/DT
year/NN
./.
First/RB
City/NNP
's/POS
portfolio/NN
includes/VBZ
approximately/RB
640,000/CD
accounts/NNS
with/IN
about/IN
$/$
550/CD
million/CD
in/IN
loans/NNS
outstanding/JJ
./.
First/NNP
City/NNP
,/,
which/WDT
issues/VBZ
both/DT
MasterCard/NNP
and/CC
Visa/NNP
cards/NNS
,/,
has/VBZ
agreed/VBN
to/TO
act/VB
as/IN
an/DT
agent/NN
bank/NN
./.
At/IN
the/DT
end/NN
of/IN
the/DT
third/JJ
quarter/NN
,/,
Bank/NNP
of/IN
New/NNP
York/NNP
's/POS
credit-card/NN
business/NN
consisted/VBD
of/IN
2.4/CD
million/CD
accounts/NNS
with/IN
$/$
3.6/CD
billion/CD
in/IN
loans/NNS
outstanding/JJ
./.
Bank/NNP
of/IN
New/NNP
York/NNP
is/VBZ
currently/RB
the/DT
seventh-largest/JJ
issuer/NN
of/IN
credit/NN
cards/NNS
in/IN
the/DT
First/NNP
City/NNP
said/VBD
that/IN
because/IN
of/IN
increased/VBN
competition/NN
in/IN
the/DT
credit-card/NN
business/NN
,/,
it/PRP
had/VBD
decided/VBN
it/PRP
either/CC
had/VBD
to/TO
expand/VB
its/PRP$
own/JJ
holdings/NNS
substantially/RB
or/CC
sell/VB
them/PRP
./.
``/``
We/PRP
think/VBP
there/EX
's/VBZ
a/DT
good/JJ
prospect/NN
that/DT
competition/NN
is/VBZ
going/VBG
to/TO
get/VB
pretty/RB
fierce/JJ
in/IN
this/DT
market/NN
,/,
''/''
said/VBD
James/NNP
E./NNP
Day/NNP
,/,
a/DT
First/NNP
City/NNP
vice/NN
president/NN
./.
``/``
We/PRP
see/VBP
it/PRP
becoming/VBG
a/DT
bargain-basement/NN
kind/NN
of/IN
business/NN
./.
''/''
The/DT
company/NN
estimated/VBN
that/IN
the/DT
transaction/NN
would/MD
enhance/VB
its/PRP$
book/NN
value/NN
,/,
which/WDT
stood/VBD
at/IN
$/$
28.55/CD
a/DT
share/NN
on/IN
Sept./NNP
30/CD
,/,
by/IN
more/RBR
than/IN
$/$
100/CD
million/CD
,/,
or/CC
about/IN
$/$
4/CD
a/DT
share/NN
./.
The/DT
company/NN
also/RB
said/VBD
the/DT
transaction/NN
would/MD
bolster/VB
after-tax/JJ
earnings/NNS
by/IN
$/$
3.25/CD
a/DT
share/NN
when/WRB
completed/VBN
and/CC
boost/VB
its/PRP$
primary/JJ
capital/NN
ratio/NN
to/TO
7/CD
%/NN
from/IN
6.63/CD
%/NN
./.
First/NNP
City/NNP
,/,
which/WDT
recently/RB
purchased/VBD
three/CD
small/JJ
Texas/NNP
banking/NN
concerns/NNS
,/,
said/VBD
it/PRP
would/MD
use/VB
the/DT
proceeds/NNS
to/TO
pursue/VB
additional/JJ
expansion/NN
opportunities/NNS
in/IN
the/DT
Southwest/NN
and/CC
elsewhere/RB
./.
With/IN
that/DT
possibility/NN
in/IN
mind/NN
,/,
analysts/NNS
said/VBD
the/DT
transaction/NN
was/VBD
a/DT
positive/JJ
move/NN
for/IN
First/NNP
City/NNP
./.
``/``
I/PRP
think/VBP
they/PRP
'll/MD
be/VB
able/JJ
to/TO
move/VB
faster/RBR
to/TO
make/VB
acquisitions/NNS
in/IN
Texas/NNP
,/,
''/''
said/VBD
Brent/NNP
Erensel/NNP
,/,
an/DT
analyst/NN
with/IN
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
./.
``/``
That/DT
's/VBZ
something/NN
they/PRP
can/MD
do/VB
very/RB
well/RB
./.
''/''
British/NNP
Airways/NNPS
PLC/NNP
said/VBD
it/PRP
is/VBZ
seeking/VBG
improved/VBN
terms/NNS
and/CC
a/DT
sharply/RB
lower/JJR
price/NN
in/IN
any/DT
revised/VBN
bid/NN
for/IN
United/NNP
Airlines/NNPS
parent/NN
UAL/NNP
Corp./NNP
following/VBG
the/DT
collapse/NN
of/IN
a/DT
$/$
6.79/CD
billion/CD
,/,
$/$
300-a-share/JJ
buy-out/NN
bid/NN
./.
Derek/NNP
Stevens/NNP
,/,
British/NNP
Air/NNP
's/POS
chief/NN
financial/JJ
officer/NN
,/,
told/VBD
Dow/NNP
Jones/NNP
Professional/NNP
Investor/NNP
Report/NNP
a/DT
price/NN
of/IN
$/$
230/CD
a/DT
share/NN
is/VBZ
``/``
certainly/RB
not/RB
too/RB
low/JJ
,/,
''/''
and/CC
indicated/VBD
his/PRP$
company/NN
would/MD
like/VB
to/TO
reduce/VB
the/DT
size/NN
of/IN
its/PRP$
$/$
750/CD
million/CD
cash/NN
investment/NN
./.
He/PRP
added/VBD
the/DT
airline/NN
is/VBZ
n't/RB
committed/VBN
to/TO
going/VBG
forward/RB
with/IN
any/DT
new/JJ
bid/NN
,/,
and/CC
has/VBZ
n't/RB
participated/VBN
in/IN
bankers/NNS
'/POS
efforts/NNS
to/TO
revive/VB
the/DT
transaction/NN
that/WDT
collapsed/VBD
./.
``/``
We/PRP
're/VBP
in/IN
no/DT
way/NN
committed/VBN
to/TO
a/DT
deal/NN
going/VBG
through/IN
at/IN
all/DT
./.
We/PRP
're/VBP
not/RB
rushing/VBG
into/IN
anything/NN
./.
We/PRP
do/VBP
n't/RB
want/VB
to/TO
be/VB
party/NN
to/TO
a/DT
second/JJ
rejection/NN
,/,
''/''
he/PRP
said/VBD
,/,
adding/VBG
that/IN
coming/VBG
up/IN
with/IN
a/DT
revised/VBN
offer/NN
could/MD
easily/RB
take/VB
several/JJ
weeks/NNS
./.
Mr./NNP
Stevens/NNP
's/POS
remarks/NNS
,/,
confirming/VBG
a/DT
report/NN
in/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
that/IN
British/NNP
Air/NNP
wants/VBZ
to/TO
start/VB
from/IN
scratch/NN
in/IN
any/DT
new/JJ
bid/NN
for/IN
the/DT
nation/NN
's/POS
second-largest/JJ
airline/NN
,/,
helped/VBD
push/VB
UAL/NNP
stock/NN
lower/JJR
for/IN
the/DT
fourth/JJ
straight/JJ
day/NN
./.
UAL/NNP
fell/VBD
$/$
6.25/CD
a/DT
share/NN
to/TO
$/$
191.75/CD
on/IN
volume/NN
of/IN
2.3/CD
million/CD
shares/NNS
in/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
as/IN
concern/NN
deepened/VBD
among/IN
takeover/NN
stock/NN
traders/NNS
about/IN
the/DT
length/NN
of/IN
time/NN
it/PRP
will/MD
take/VB
to/TO
revive/VB
the/DT
purchase/NN
./.
Under/IN
the/DT
original/JJ
buy-out/NN
approved/VBN
by/IN
the/DT
UAL/NNP
board/NN
Sept./NNP
14/CD
,/,
UAL/NNP
's/POS
pilots/NNS
planned/VBD
to/TO
put/VB
up/IN
$/$
200/CD
million/CD
in/IN
cash/NN
and/CC
make/VB
$/$
200/CD
million/CD
in/IN
annual/JJ
cost/NN
concessions/NNS
for/IN
a/DT
75/CD
%/NN
stake/NN
./.
UAL/NNP
management/NN
was/VBD
to/TO
pay/VB
$/$
15/CD
million/CD
for/IN
10/CD
%/NN
,/,
and/CC
British/NNP
Air/NNP
was/VBD
to/TO
receive/VB
a/DT
15/CD
%/NN
stake/NN
./.
The/DT
buy-out/NN
fell/NN
through/IN
when/WRB
Citicorp/NNP
and/CC
Chase/NNP
Manhattan/NNP
Corp./NNP
unexpectedly/RB
failed/VBD
to/TO
obtain/VB
bank/NN
financing/NN
./.
Since/IN
then/RB
,/,
UAL/NNP
stock/NN
has/VBZ
fallen/VBN
33/CD
%/NN
in/IN
what/WP
may/MD
rank/VB
as/IN
the/DT
largest/JJS
collapse/NN
of/IN
a/DT
takeover/NN
stock/NN
ever/RB
./.
The/DT
tenor/NN
of/IN
Mr./NNP
Stevens/NNP
's/POS
remarks/NNS
seemed/VBD
to/TO
indicate/VB
that/IN
British/NNP
Air/NNP
will/MD
take/VB
a/DT
more/RBR
active/JJ
,/,
high-profile/JJ
role/NN
in/IN
pursuing/VBG
any/DT
new/JJ
bid/NN
./.
He/PRP
said/VBD
he/PRP
believes/VBZ
UAL/NNP
management/NN
was/VBD
badly/RB
advised/VBN
on/IN
the/DT
funding/VBG
of/IN
its/PRP$
original/JJ
transaction/NN
./.
Mr./NNP
Stevens/NNP
said/VBD
British/NNP
Air/NNP
has/VBZ
n't/RB
received/VBD
any/DT
new/JJ
buy-out/NN
proposals/NNS
from/IN
the/DT
labor-management/NN
group/NN
,/,
led/VBN
by/IN
UAL/NNP
Chairman/NNP
Stephen/NNP
Wolf/NNP
,/,
and/CC
has/VBZ
n't/RB
received/VBN
any/DT
indication/NN
of/IN
when/WRB
one/NN
might/MD
be/VB
forthcoming/JJ
./.
``/``
As/RB
far/RB
as/IN
we/PRP
're/VBP
concerned/VBN
,/,
we/PRP
're/VBP
waiting/VBG
for/IN
the/DT
dust/NN
to/TO
settle/VB
,/,
''/''
he/PRP
said/VBD
./.
Although/IN
British/NNP
Air/NNP
is/VBZ
waiting/VBG
to/TO
see/VB
what/WP
the/DT
buy-out/NN
group/NN
comes/VBZ
up/IN
with/IN
,/,
Mr./NNP
Stevens/NNP
said/VBD
a/DT
revised/VBN
transaction/NN
with/IN
less/JJR
debt/NN
leverage/NN
is/VBZ
likely/JJ
to/TO
be/VB
more/RBR
attractive/JJ
to/TO
banks/NNS
./.
He/PRP
said/VBD
the/DT
original/JJ
proposal/NN
is/VBZ
dead/JJ
,/,
and/CC
all/DT
aspects/NNS
of/IN
a/DT
revised/VBN
version/NN
are/VBP
up/IN
for/IN
change/NN
,/,
in/IN
light/NN
of/IN
the/DT
changes/NNS
in/IN
UAL/NNP
's/POS
market/NN
price/NN
,/,
the/DT
amount/NN
of/IN
debt/NN
banks/NNS
are/VBP
willing/JJ
to/TO
fund/VB
,/,
and/CC
the/DT
price/NN
British/NNP
Air/NNP
would/MD
be/VB
willing/JJ
to/TO
pay/VB
./.
Mr./NNP
Stevens/NNP
said/VBD
he/PRP
expects/VBZ
the/DT
new/JJ
price/NN
will/MD
be/VB
considerably/RB
lower/JJR
,/,
but/CC
declined/VBD
to/TO
specify/VB
a/DT
figure/NN
./.
Asked/VBD
whether/IN
a/DT
$/$
230-a-share/JJ
figure/NN
circulating/VBG
in/IN
the/DT
market/NN
yesterday/NN
is/VBZ
too/RB
low/JJ
,/,
he/PRP
said/VBD
,/,
``/``
It/PRP
's/VBZ
certainly/RB
not/RB
too/RB
low/JJ
./.
''/''
He/PRP
added/VBD
the/DT
original/JJ
offer/NN
was/VBD
``/``
a/DT
pretty/RB
full/JJ
price/NN
,/,
''/''
and/CC
that/IN
British/NNP
Air/NNP
's/POS
contribution/NN
``/``
was/VBD
quite/RB
a/DT
large/JJ
chunk/NN
for/IN
us/PRP
./.
''/''
British/NNP
Air/NNP
was/VBD
originally/RB
attracted/VBN
to/TO
the/DT
chance/NN
of/IN
obtaining/VBG
a/DT
15/CD
%/NN
stake/NN
in/IN
the/DT
company/NN
,/,
but/CC
was/VBD
n't/RB
particularly/RB
happy/JJ
with/IN
paying/VBG
$/$
750/CD
million/CD
./.
``/``
If/IN
the/DT
new/JJ
deal/NN
had/VBD
us/PRP
putting/VBG
up/IN
less/JJR
money/NN
but/CC
still/RB
having/VBG
15/CD
%/NN
,/,
that/WDT
would/MD
be/VB
a/DT
point/NN
in/IN
our/PRP$
favor/NN
,/,
''/''
he/PRP
said/VBD
./.
In/IN
any/DT
new/JJ
proposal/NN
,/,
British/NNP
Air/NNP
would/MD
expect/VB
a/DT
greater/JJR
rate/NN
of/IN
return/NN
than/IN
the/DT
20%-plus/JJ
in/IN
the/DT
original/JJ
proposal/NN
./.
In/IN
the/DT
event/NN
that/IN
the/DT
buy-out/NN
group/NN
stalls/VBZ
in/IN
reviving/VBG
its/PRP$
bid/NN
,/,
the/DT
UAL/NNP
board/NN
could/MD
remain/VB
under/IN
some/DT
pressure/NN
to/TO
seek/VB
another/DT
transaction/NN
,/,
even/RB
without/IN
any/DT
legal/JJ
obligation/NN
to/TO
do/VB
so/RB
./.
Roughly/RB
one-third/NN
of/IN
its/PRP$
stock/NN
is/VBZ
believed/VBN
held/VBN
by/IN
takeover/NN
stock/NN
traders/NNS
,/,
who/WP
could/MD
vote/VB
to/TO
oust/VB
the/DT
board/NN
if/IN
they/PRP
become/VBP
impatient/NN
./.
Meanwhile/RB
,/,
the/DT
buy-out/NN
group/NN
's/POS
task/NN
of/IN
holding/VBG
its/PRP$
fragile/JJ
coalition/NN
together/RB
,/,
in/IN
the/DT
face/NN
of/IN
the/DT
bid/NN
's/POS
collapse/NN
and/CC
internal/JJ
opposition/NN
from/IN
two/CD
other/JJ
employee/NN
groups/NNS
,/,
has/VBZ
been/VBN
further/RB
complicated/VBN
by/IN
an/DT
apparent/JJ
rift/NN
in/IN
the/DT
ranks/NNS
of/IN
the/DT
pilot/NN
union/NN
itself/PRP
./.
A/DT
pilot/NN
representing/VBG
a/DT
group/NN
of/IN
220/CD
pilots/NNS
hired/VBN
during/IN
United/NNP
's/POS
1985/CD
strike/NN
filed/VBD
suit/NN
Friday/NNP
in/IN
Chicago/NNP
federal/JJ
court/NN
to/TO
block/VB
the/DT
takeover/NN
./.
The/DT
dissident/JJ
pilots/NNS
oppose/VBP
the/DT
plan/NN
because/IN
it/PRP
would/MD
cause/VB
them/PRP
to/TO
lose/VB
their/PRP$
seniority/NN
./.
UAL/NNP
's/POS
management/NN
agreed/VBD
to/TO
reduce/VB
the/DT
seniority/NN
of/IN
those/DT
pilots/NNS
in/IN
exchange/NN
for/IN
the/DT
support/NN
of/IN
the/DT
United/NNP
pilot/NN
union/NN
for/IN
the/DT
buy-out/NN
proposal/NN
./.
The/DT
220/CD
pilots/NNS
involved/VBN
in/IN
the/DT
suit/NN
are/VBP
n't/RB
members/NNS
of/IN
the/DT
union/NN
./.
The/DT
airline/NN
had/VBD
allowed/VBN
them/PRP
to/TO
move/VB
ahead/RB
of/IN
some/DT
union/NN
members/NNS
in/IN
seniority/NN
following/VBG
the/DT
1985/CD
strike/NN
,/,
a/DT
move/NN
the/DT
union/NN
had/VBD
contested/VBN
in/IN
a/DT
previous/JJ
lawsuit/NN
./.
Judith/NNP
Valente/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Corporate/JJ
efforts/NNS
to/TO
control/VB
health-care/JJ
costs/NNS
by/IN
requiring/VBG
evaluations/NNS
prior/RB
to/TO
planned/VBN
hospitalization/NN
and/CC
surgery/NN
have/VBP
n't/RB
been/VBN
sweeping/VBG
enough/RB
to/TO
reduce/VB
the/DT
long-term/JJ
rate/NN
of/IN
cost/NN
increases/NNS
,/,
according/VBG
to/TO
a/DT
study/NN
by/IN
the/DT
Institute/NNP
of/IN
Medicine/NNP
./.
In/IN
the/DT
last/JJ
decade/NN
,/,
many/JJ
corporations/NNS
have/VBP
embraced/VBN
the/DT
``/``
utilization/NN
management/NN
''/''
cost/NN
containment/NN
strategy/NN
as/IN
a/DT
way/NN
to/TO
control/VB
health-care/JJ
costs/NNS
for/IN
employees/NNS
./.
These/DT
programs/NNS
vary/VBP
widely/RB
,/,
but/CC
often/RB
require/VBP
second/JJ
opinions/NNS
on/IN
proposed/VBN
surgery/NN
,/,
preadmission/NN
reviews/NNS
of/IN
elective/JJ
hospitalizations/NNS
and/CC
reviews/NNS
of/IN
treatment/NN
during/IN
illnesses/NNS
or/CC
recovery/NN
periods/NNS
./.
Between/IN
50/CD
%/NN
and/CC
75/CD
%/NN
of/IN
today/NN
's/POS
workers/NNS
are/VBP
covered/VBN
by/IN
such/JJ
plans/NNS
,/,
up/IN
from/IN
5/CD
%/NN
five/CD
years/NNS
ago/IN
./.
``/``
Although/IN
it/PRP
probably/RB
has/VBZ
reduced/VBN
the/DT
level/NN
of/IN
expenditures/NNS
for/IN
some/DT
purchasers/NNS
,/,
utilization/NN
management/NN
--/:
like/IN
most/RBS
other/JJ
cost/NN
containment/NN
strategies/NNS
--/:
does/VBZ
n't/RB
appear/VB
to/TO
have/VB
altered/VBN
the/DT
long-term/JJ
rate/NN
of/IN
increase/NN
in/IN
health-care/JJ
costs/NNS
,/,
''/''
the/DT
Institute/NNP
of/IN
Medicine/NNP
,/,
an/DT
affiliate/NN
of/IN
the/DT
National/NNP
Academy/NNP
of/IN
Sciences/NNPS
,/,
concluded/VBD
after/IN
a/DT
two-year/JJ
study/NN
./.
``/``
Employers/NNS
who/WP
saw/VBD
a/DT
short-term/JJ
moderation/NN
in/IN
benefit/NN
expenditures/NNS
are/VBP
seeing/VBG
a/DT
return/NN
to/TO
previous/JJ
trends/NNS
./.
''/''
While/IN
utilization/NN
management/NN
frequently/RB
reduces/VBZ
hospitalization/NN
costs/NNS
,/,
these/DT
savings/NNS
are/VBP
often/RB
offset/VBN
by/IN
increases/NNS
in/IN
outpatient/NN
services/NNS
and/CC
higher/JJR
administrative/JJ
costs/NNS
,/,
according/VBG
to/TO
the/DT
report/NN
by/IN
a/DT
panel/NN
of/IN
health-care/JJ
experts/NNS
./.
The/DT
report/NN
suggested/VBD
that/DT
current/JJ
review/NN
programs/NNS
are/VBP
too/RB
narrow/JJ
./.
``/``
The/DT
unnecessary/JJ
and/CC
inappropriate/JJ
use/NN
of/IN
the/DT
hospital/NN
,/,
and/CC
not/RB
the/DT
actual/JJ
need/NN
for/IN
a/DT
particular/JJ
procedure/NN
,/,
has/VBZ
been/VBN
the/DT
main/JJ
focus/NN
,/,
''/''
the/DT
panel/NN
said/VBD
./.
``/``
As/IN
a/DT
general/JJ
rule/NN
,/,
prior-review/JJ
programs/NNS
have/VBP
not/RB
made/VBN
case-by-case/JJ
assessments/NNS
of/IN
the/DT
comparative/JJ
costs/NNS
of/IN
alternative/JJ
treatments/NNS
or/CC
sites/NNS
of/IN
care/NN
./.
''/''
The/DT
report/NN
said/VBD
that/DT
utilization/NN
management/NN
should/MD
have/VB
more/RBR
of/IN
an/DT
impact/NN
as/IN
federal/JJ
research/NN
on/IN
the/DT
effectiveness/NN
of/IN
medical/JJ
treatments/NNS
helps/VBZ
lead/VB
to/TO
medical/JJ
practice/NN
guidelines/NNS
./.
Howard/NNP
Bailit/NNP
,/,
a/DT
panel/NN
member/NN
and/CC
a/DT
vice/NN
president/NN
of/IN
Aetna/NNP
Life/NNP
&/CC
Casualty/NNP
,/,
said/VBD
that/DT
utilization/NN
management/NN
will/MD
also/RB
do/VB
a/DT
better/JJR
job/NN
of/IN
containing/VBG
costs/NNS
as/IN
it/PRP
spreads/VBZ
to/TO
cover/VB
medical/JJ
services/NNS
delivered/VBN
outside/IN
of/IN
hospitals/NNS
./.
``/``
There/EX
's/VBZ
pretty/RB
good/JJ
evidence/NN
that/DT
utilization/NN
management/NN
has/VBZ
reduced/VBN
inappropriate/JJ
hospitalization/NN
,/,
''/''
he/PRP
said/VBD
./.
But/CC
at/IN
the/DT
same/JJ
time/NN
,/,
spending/VBG
on/IN
physician/NN
services/NNS
and/CC
ambulatory/JJ
care/NN
have/VBP
mushroomed/VBN
./.
``/``
It/PRP
's/VBZ
like/IN
squeezing/VBG
a/DT
balloon/NN
,/,
''/''
Dr./NNP
Bailit/NNP
said/VBD
./.
David/NNP
Rahill/NNP
of/IN
A./NNP
Foster/NNP
Higgins/NNP
&/CC
Co./NNP
said/VBD
that/IN
clients/NNS
of/IN
his/PRP$
consulting/VBG
firm/JJ
report/NN
that/DT
utilization/NN
management/NN
reduces/VBZ
their/PRP$
hospital/NN
care/NN
bills/NNS
by/IN
about/IN
5/CD
%/NN
,/,
but/CC
he/PRP
agreed/VBD
that/IN
for/IN
the/DT
health-care/NN
system/NN
as/IN
whole/JJ
,/,
some/DT
of/IN
these/DT
savings/NNS
are/VBP
offset/VBN
by/IN
administrative/JJ
and/CC
outpatient/NN
care/NN
costs/NNS
./.
Jerome/NNP
Grossman/NNP
,/,
chairman/NN
of/IN
the/DT
panel/NN
,/,
agrees/VBZ
that/IN
administrative/JJ
costs/NNS
of/IN
utilization/NN
management/NN
programs/NNS
can/MD
be/VB
high/JJ
./.
``/``
You/PRP
have/VBP
a/DT
whole/JJ
staff/NN
standing/VBG
ready/JJ
''/''
to/TO
evaluate/VB
the/DT
appropriateness/NN
of/IN
recommended/VBN
treatment/NN
,/,
he/PRP
said/VBD
./.
Dr./NNP
Grossman/NNP
,/,
who/WP
also/RB
is/VBZ
president/NN
of/IN
New/NNP
England/NNP
Medical/NNP
Center/NNP
Hospitals/NNPS
in/IN
Boston/NNP
,/,
noted/VBD
that/IN
the/DT
hospitals/NNS
he/PRP
runs/VBZ
deal/VBP
with/IN
more/JJR
than/IN
100/CD
utilization/NN
management/NN
firms/NNS
and/CC
that/IN
many/JJ
of/IN
them/PRP
have/VBP
different/JJ
procedures/NNS
and/CC
requirements/NNS
./.
The/DT
panel/NN
urged/VBD
greater/JJR
efforts/NNS
to/TO
reduce/VB
the/DT
complexity/NN
,/,
paperwork/NN
and/CC
cost/NN
of/IN
utilization/NN
review/NN
./.
``/``
Utilization/NN
management/NN
needs/VBZ
to/TO
better/RB
demonstrate/VB
that/IN
it/PRP
reduces/VBZ
the/DT
wasteful/JJ
use/NN
of/IN
resources/NNS
,/,
improves/VBZ
the/DT
appropriateness/NN
of/IN
patient/JJ
care/NN
and/CC
imposes/VBZ
only/RB
reasonable/JJ
burdens/NNS
on/IN
patients/NNS
and/CC
providers/NNS
,/,
''/''
the/DT
panel/NN
concluded/VBD
./.
Renault/NNP
and/CC
DAF/NNP
Trucks/NNPS
NV/NNP
announced/VBD
a/DT
preliminary/JJ
agreement/NN
to/TO
jointly/RB
manufacture/VB
a/DT
line/NN
of/IN
trucks/NNS
in/IN
Britain/NNP
and/CC
France/NNP
./.
Philippe/NNP
Gras/NNP
,/,
a/DT
Renault/NNP
managing/VBG
director/NN
,/,
said/VBD
the/DT
new/JJ
line/NN
will/MD
cover/VB
trucks/NNS
of/IN
between/IN
2.5/CD
tons/NNS
and/CC
4.2/CD
tons/NNS
and/CC
will/MD
be/VB
built/VBN
at/IN
Renault/NNP
's/POS
Bapilly/NNP
plant/NN
in/IN
France/NNP
and/CC
at/IN
DAF/NNP
's/POS
British/JJ
plant/NN
./.
The/DT
French/NNP
state-controlled/JJ
auto/NN
group/NN
and/CC
the/DT
Dutch/NNP
truck/NN
maker/NN
plan/NN
to/TO
incorporate/VB
the/DT
new/JJ
trucks/NNS
into/IN
their/PRP$
product/NN
lines/NNS
when/WRB
they/PRP
begin/VBP
production/NN
toward/IN
the/DT
middle/NN
of/IN
the/DT
1990s/CD
./.
Mr./NNP
Gras/NNP
said/VBD
he/PRP
expects/VBZ
a/DT
definitive/JJ
agreement/NN
between/IN
the/DT
two/CD
companies/NNS
to/TO
be/VB
completed/VBN
in/IN
the/DT
next/JJ
few/JJ
months/NNS
./.
The/DT
venture/NN
is/VBZ
the/DT
latest/JJS
example/NN
of/IN
the/DT
trend/NN
toward/IN
cooperative/JJ
projects/NNS
in/IN
Europe/NNP
ahead/RB
of/IN
the/DT
1992/CD
deadline/NN
for/IN
eliminating/VBG
trade/NN
barriers/NNS
within/IN
the/DT
European/NNP
Community/NNP
./.
Renault/NNP
and/CC
DAF/NNP
are/VBP
expected/VBN
to/TO
invest/VB
a/DT
total/NN
of/IN
about/IN
three/CD
billion/CD
French/JJ
francs/NNS
$/$
157.8/CD
million/CD
the/DT
venture/NN
,/,
including/VBG
FFr/SYM
1/CD
billion/CD
for/IN
design/NN
and/CC
development/NN
costs/NNS
./.
In/IN
addition/NN
,/,
the/DT
companies/NNS
will/MD
each/DT
spend/VB
about/IN
FFr/SYM
1/CD
billion/CD
on/IN
tooling/NN
up/IN
their/PRP$
plants/NNS
./.
Mr./NNP
Gras/NNP
said/VBD
the/DT
joint/JJ
venture/NN
represents/VBZ
considerable/JJ
savings/NNS
for/IN
both/DT
Renault/NNP
and/CC
DAF/NNP
,/,
since/IN
both/DT
companies/NNS
would/MD
in/IN
any/DT
case/NN
have/VB
had/VBN
to/TO
renew/VB
their/PRP$
existing/VBG
ranges/NNS
of/IN
light/JJ
goods/NNS
vehicles/NNS
./.
By/IN
pooling/VBG
their/PRP$
resources/NNS
,/,
the/DT
two/CD
groups/NNS
have/VBP
effectively/RB
halved/VBN
the/DT
design/NN
and/CC
development/NN
costs/NNS
that/WDT
would/MD
otherwise/RB
have/VB
been/VBN
entailed/VBN
,/,
he/PRP
said/VBD
./.
Renault/NNP
officials/NNS
said/VBD
the/DT
potential/JJ
European/JJ
market/NN
for/IN
light/JJ
trucks/NNS
in/IN
the/DT
2.5-ton/JJ
to/TO
4.2-ton/JJ
range/NN
is/VBZ
between/IN
700,000/CD
and/CC
800,000/CD
vehicles/NNS
annually/RB
,/,
and/CC
Renault/NNP
and/CC
DAF/NNP
are/VBP
aiming/VBG
for/IN
a/DT
combined/JJ
market/NN
share/NN
of/IN
about/IN
11/CD
%/NN
./.
Both/DT
Renault/NNP
and/CC
DAF/NNP
will/MD
have/VB
world-wide/JJ
marketing/NN
rights/NNS
for/IN
the/DT
new/JJ
range/NN
of/IN
vans/NNS
and/CC
light/NN
trucks/NNS
./.
Under/IN
a/DT
separate/JJ
arrangement/NN
,/,
British/NNP
Aerospace/NNP
PLC/NNP
's/POS
Rover/NNP
Group/NNP
PLC/NNP
subsidiary/NN
will/MD
also/RB
be/VB
able/JJ
to/TO
offer/VB
the/DT
vehicles/NNS
through/IN
its/PRP$
dealers/NNS
in/IN
the/DT
U.K./NNP
,/,
and/CC
Renault/NNP
's/POS
truck-building/JJ
subsidiary/NN
Renault/NNP
Vehicles/NNPS
Industriels/NNPS
will/MD
have/VB
similar/JJ
rights/NNS
in/IN
France/NNP
./.
DAF/NNP
is/VBZ
16%-owned/JJ
by/IN
British/NNP
Aerospace/NNP
,/,
with/IN
a/DT
further/JJ
6.5/CD
%/NN
held/VBN
by/IN
the/DT
Dutch/JJ
state-owned/JJ
chemical/NN
group/NN
NV/NNP
DSM/NNP
./.
The/DT
van/NNP
Doorne/NNP
family/NN
of/IN
the/DT
Netherlands/NNP
holds/VBZ
an/DT
additional/JJ
11/CD
%/NN
of/IN
DAF/NNP
's/POS
capital/NN
./.
The/DT
Federal/NNP
Reserve/NNP
System/NNP
is/VBZ
the/DT
standard/JJ
object/NN
of/IN
suggestions/NNS
for/IN
organizational/JJ
and/CC
institutional/JJ
changes/NNS
,/,
for/IN
two/CD
reasons/NNS
./.
First/JJ
,/,
its/PRP$
position/NN
in/IN
the/DT
government/NN
is/VBZ
anomalous/JJ
./.
It/PRP
has/VBZ
an/DT
unusual/JJ
kind/NN
of/IN
independence/NN
from/IN
elected/VBN
officials/NNS
and/CC
still/RB
has/VBZ
authority/NN
over/IN
one/CD
of/IN
the/DT
most/RBS
powerful/JJ
of/IN
government/NN
's/POS
instruments/NNS
--/:
the/DT
control/NN
of/IN
the/DT
money/NN
supply/NN
./.
Thus/RB
we/PRP
have/VBP
a/DT
condition/NN
that/WDT
is/VBZ
easily/RB
described/VBN
as/IN
undemocratic/JJ
./.
Second/JJ
,/,
the/DT
responsibilities/NNS
of/IN
the/DT
Federal/NNP
Reserve/NNP
as/IN
guardian/NN
of/IN
the/DT
currency/NN
,/,
which/WDT
means/VBZ
as/IN
guardian/NN
of/IN
the/DT
stability/NN
of/IN
the/DT
price/NN
level/NN
,/,
sometimes/RB
lead/VBP
it/PRP
to/TO
take/VB
measures/NNS
that/WDT
are/VBP
unpopular/JJ
./.
As/IN
former/JJ
Fed/NNP
Chairman/NNP
William/NNP
McChesney/NNP
Martin/NNP
used/VBD
to/TO
say/VB
,/,
they/PRP
would/MD
have/VB
to/TO
take/VB
the/DT
punch/NN
bowl/NN
away/RB
just/RB
as/IN
the/DT
party/NN
is/VBZ
getting/VBG
interesting/JJ
./.
So/IN
the/DT
Federal/NNP
Reserve/NNP
is/VBZ
an/DT
attractive/JJ
target/NN
for/IN
complaint/NN
by/IN
politicians/NNS
./.
The/DT
Fed/NNP
is/VBZ
easily/RB
assigned/VBN
the/DT
blame/NN
for/IN
unpleasantness/NN
,/,
like/IN
high/JJ
interest/NN
rates/NNS
or/CC
slow/JJ
economic/JJ
growth/NN
,/,
while/IN
the/DT
politicians/NNS
can/MD
escape/VB
responsibility/NN
by/IN
pointing/VBG
to/TO
the/DT
Fed/NNP
's/POS
independence/NN
./.
This/DT
leads/VBZ
to/TO
proposals/NNS
for/IN
``/``
reform/NN
''/''
of/IN
the/DT
Fed/NNP
,/,
which/WDT
have/VBP
the/DT
common/JJ
feature/NN
of/IN
making/VBG
the/DT
Fed/NNP
more/RBR
responsive/JJ
to/TO
the/DT
administration/NN
,/,
to/TO
the/DT
Congress/NNP
and/CC
to/TO
public/JJ
opinion/NN
--/:
without/IN
,/,
however/RB
,/,
any/DT
assumption/NN
of/IN
additional/JJ
responsibility/NN
by/IN
the/DT
politicians/NNS
./.
These/DT
proposals/NNS
include/VBP
changing/VBG
the/DT
term/NN
of/IN
the/DT
chairman/NN
,/,
shortening/VBG
the/DT
terms/NNS
of/IN
the/DT
members/NNS
,/,
eliminating/VBG
the/DT
presidents/NNS
of/IN
the/DT
Federal/NNP
Reserve/NNP
Banks/NNPS
from/IN
the/DT
decision-making/JJ
process/NN
,/,
putting/VBG
the/DT
Secretary/NNP
of/IN
the/DT
Treasury/NNP
on/IN
the/DT
Federal/NNP
Reserve/NNP
Board/NNP
,/,
having/VBG
the/DT
Fed/NNP
audited/VBD
by/IN
an/DT
arm/NN
of/IN
Congress/NNP
the/DT
General/NNP
Accounting/NNP
Office/NNP
the/DT
Fed/NNP
's/POS
expenditures/NNS
in/IN
the/DT
budget/NN
,/,
and/CC
requiring/VBG
prompt/JJ
publication/NN
of/IN
the/DT
Fed/NNP
's/POS
minutes/NNS
./.
Some/DT
of/IN
these/DT
ideas/NNS
are/VBP
again/RB
under/IN
consideration/NN
in/IN
Congress/NNP
./.
But/CC
these/DT
proposals/NNS
do/VBP
not/RB
rest/VB
on/IN
a/DT
view/NN
of/IN
what/WP
the/DT
Fed/NNP
's/POS
problem/NN
is/VBZ
or/CC
,/,
if/IN
they/PRP
do/VBP
,/,
they/PRP
rest/VBP
on/IN
an/DT
incorrect/JJ
view/NN
./.
They/PRP
would/MD
not/RB
solve/VB
the/DT
problem/NN
;/:
they/PRP
would/MD
make/VB
it/PRP
worse/JJR
./.
The/DT
problem/NN
is/VBZ
not/RB
that/IN
the/DT
Fed/NNP
is/VBZ
too/RB
unresponsive/JJ
to/TO
the/DT
public/JJ
interest/NN
./.
On/IN
the/DT
contrary/NN
,/,
it/PRP
is/VBZ
too/RB
responsive/JJ
to/TO
an/DT
incorrect/JJ
view/NN
of/IN
the/DT
public/JJ
interest/NN
./.
The/DT
price/NN
level/NN
in/IN
the/DT
U.S./NNP
is/VBZ
now/RB
about/IN
4/CD
1\/4/CD
times/NNS
as/RB
high/RB
as/IN
it/PRP
was/VBD
30/CD
years/NNS
ago/IN
./.
On/IN
average/NN
,/,
something/NN
that/WDT
cost/VBD
$/$
100/CD
30/CD
years/NNS
ago/IN
now/RB
costs/VBZ
$/$
425/CD
./.
Or/CC
,/,
a/DT
wage/NN
that/WDT
was/VBD
$/$
100/CD
30/CD
years/NNS
ago/IN
would/MD
buy/VB
only/RB
$/$
23.53/CD
worth/NN
of/IN
stuff/NN
today/NN
./.
On/IN
two/CD
occasions/NNS
the/DT
inflation/NN
rate/NN
rose/VBD
to/TO
more/JJR
than/IN
10/CD
%/NN
a/DT
year/NN
./.
In/IN
each/DT
case/NN
the/DT
ending/NN
of/IN
this/DT
unsustainable/JJ
inflation/NN
caused/VBD
a/DT
severe/JJ
recession/NN
--/:
the/DT
two/CD
worst/JJS
of/IN
the/DT
postwar/JJ
period/NN
./.
The/DT
enormous/JJ
inflation/NN
over/IN
the/DT
past/JJ
30/CD
years/NNS
was/VBD
largely/RB
due/JJ
to/TO
monetary/JJ
policy/NN
./.
At/IN
least/JJS
,/,
it/PRP
would/MD
not/RB
have/VB
happened/VBN
without/IN
the/DT
support/NN
of/IN
monetary/JJ
policy/NN
that/WDT
provided/VBD
for/IN
a/DT
10-fold/JJ
increase/NN
in/IN
the/DT
money/NN
supply/NN
during/IN
the/DT
same/JJ
period/NN
./.
And/CC
that/DT
increase/NN
in/IN
the/DT
money/NN
supply/NN
would/MD
not/RB
have/VB
happened/VBN
without/IN
the/DT
consent/NN
of/IN
the/DT
Federal/NNP
Reserve/NNP
./.
The/DT
basic/JJ
problem/NN
of/IN
monetary/JJ
policy/NN
,/,
to/TO
which/WDT
reform/NN
of/IN
the/DT
Fed/NNP
should/MD
be/VB
addressed/VBN
,/,
is/VBZ
to/TO
prevent/VB
a/DT
recurrence/NN
of/IN
this/DT
experience/NN
./.
There/EX
were/VBD
two/CD
general/JJ
reasons/NNS
for/IN
the/DT
mistaken/JJ
monetary/JJ
policy/NN
of/IN
the/DT
past/JJ
30/CD
years/NNS
:/:
1/CD
./.
To/TO
some/DT
extent/NN
the/DT
Federal/NNP
Reserve/NNP
shared/VBD
the/DT
popular/JJ
but/CC
incorrect/JJ
view/NN
that/IN
expansionary/JJ
monetary/JJ
policy/NN
could/MD
yield/VB
a/DT
net/JJ
improvement/NN
in/IN
employment/NN
and/CC
output/NN
./.
2/CD
./.
Even/RB
where/WRB
the/DT
Fed/NNP
did/VBD
not/RB
share/VB
this/DT
view/NN
it/PRP
felt/VBD
the/DT
need/NN
to/TO
accommodate/VB
to/TO
it/PRP
./.
Despite/IN
all/PDT
the/DT
formal/JJ
provisions/NNS
for/IN
its/PRP$
independence/NN
,/,
the/DT
Fed/NNP
seems/VBZ
constantly/RB
to/TO
feel/VB
that/IN
if/IN
it/PRP
uses/VBZ
its/PRP$
independence/NN
too/RB
freely/RB
it/PRP
will/MD
lose/VB
it/PRP
./.
The/DT
common/JJ
proposals/NNS
for/IN
reforming/VBG
the/DT
Fed/NNP
would/MD
only/RB
make/VB
the/DT
situation/NN
worse/JJR
,/,
if/IN
they/PRP
had/VBD
any/DT
effect/NN
at/IN
all/DT
./.
Putting/VBG
the/DT
Secretary/NNP
of/IN
the/DT
Treasury/NNP
on/IN
the/DT
Board/NNP
of/IN
Governors/NNP
,/,
one/CD
of/IN
the/DT
leading/VBG
proposals/NNS
today/NN
,/,
is/VBZ
an/DT
example/NN
./.
The/DT
secretary/NN
is/VBZ
the/DT
world/NN
's/POS
biggest/JJS
borrower/NN
of/IN
money/NN
./.
He/PRP
has/VBZ
a/DT
built-in/NN
,/,
constant/JJ
longing/NN
for/IN
lower/JJR
interest/NN
rates/NNS
./.
Moreover/RB
,/,
he/PRP
is/VBZ
a/DT
political/JJ
agent/NN
of/IN
a/DT
political/JJ
president/NN
,/,
who/WP
naturally/RB
gives/VBZ
extraordinary/JJ
weight/NN
to/TO
the/DT
way/NN
the/DT
economy/NN
will/MD
perform/VB
before/IN
the/DT
next/JJ
election/NN
,/,
and/CC
less/JJR
to/TO
its/PRP$
longer-run/JJ
health/NN
./.
These/DT
days/NNS
,/,
the/DT
secretary/NN
suffers/VBZ
the/DT
further/JJ
disqualification/NN
that/IN
he/PRP
is/VBZ
a/DT
member/NN
of/IN
a/DT
club/NN
of/IN
seven/CD
finance/NN
ministers/NNS
who/WP
meet/VBP
occasionally/RB
to/TO
decide/VB
what/WP
exchange/NN
rates/NNS
should/MD
be/VB
,/,
which/WDT
is/VBZ
a/DT
diversion/NN
from/IN
the/DT
real/JJ
business/NN
of/IN
the/DT
Federal/NNP
Reserve/NNP
to/TO
stabilize/VB
the/DT
price/NN
level/NN
./.
How/WRB
should/MD
a/DT
reasonable/JJ
member/NN
of/IN
the/DT
Federal/NNP
Reserve/NNP
Board/NNP
interpret/VB
a/DT
congressional/JJ
decision/NN
to/TO
put/VB
the/DT
secretary/NN
on/IN
the/DT
board/NN
?/.
Could/MD
he/PRP
plausibly/RB
interpret/VB
it/PRP
as/IN
encouragement/NN
for/IN
the/DT
Fed/NNP
to/TO
give/VB
primary/JJ
emphasis/NN
to/TO
stabilizing/VBG
the/DT
price/NN
level/NN
?/.
Or/CC
would/MD
he/PRP
interpret/VB
it/PRP
as/IN
instruction/NN
to/TO
give/VB
more/JJR
weight/NN
to/TO
these/DT
other/JJ
objectives/NNS
that/IN
the/DT
secretary/NN
represents/VBZ
--/:
low/JJ
interest/NN
rates/NNS
,/,
short-run/JJ
economic/JJ
expansion/NN
,/,
and/CC
stabilization/NN
of/IN
exchange/NN
rates/NNS
at/IN
internationally/RB
managed/VBN
levels/NNS
?/.
The/DT
answer/NN
seems/VBZ
perfectly/RB
clear/JJ
./.
True/JJ
,/,
a/DT
succession/NN
of/IN
Fed/NNP
chairmen/NNS
has/VBZ
given/VBN
color/NN
to/TO
the/DT
notion/NN
that/IN
the/DT
Secretary/NNP
of/IN
the/DT
Treasury/NNP
belongs/VBZ
on/IN
the/DT
Fed/NNP
./.
By/IN
their/PRP$
constant/JJ
readiness/NN
to/TO
advise/VB
all/DT
and/CC
sundry/JJ
about/IN
federal/JJ
budgetary/JJ
matters/NNS
the/DT
chairmen/NNS
have/VBP
encouraged/VBN
the/DT
belief/NN
that/DT
fiscal/JJ
policy/NN
and/CC
monetary/JJ
policy/NN
are/VBP
ingredients/NNS
of/IN
a/DT
common/JJ
stew/NN
,/,
in/IN
which/WDT
case/NN
it/PRP
is/VBZ
natural/JJ
that/IN
the/DT
Fed/NNP
and/CC
the/DT
Treasury/NNP
,/,
and/CC
probably/RB
also/RB
the/DT
Congress/NNP
,/,
should/MD
be/VB
jointly/RB
engaged/VBN
in/IN
stirring/VBG
the/DT
pot/NN
./.
The/DT
Fed/NNP
's/POS
case/NN
for/IN
its/PRP$
own/JJ
independence/NN
would/MD
be/VB
a/DT
little/RB
stronger/JJR
if/IN
it/PRP
were/VBD
more/RBR
solicitous/JJ
of/IN
the/DT
independence/NN
of/IN
the/DT
rest/NN
of/IN
the/DT
government/NN
./.
The/DT
Fed/NNP
's/POS
problem/NN
is/VBZ
not/RB
that/IN
it/PRP
is/VBZ
too/RB
independent/JJ
,/,
or/CC
too/RB
unpolitical/JJ
./.
The/DT
Fed/NNP
is/VBZ
responsive/JJ
to/TO
,/,
and/CC
can/MD
not/RB
help/VB
being/VBG
responsive/JJ
to/TO
,/,
the/DT
more/JJR
overtly/RB
political/JJ
part/NN
of/IN
the/DT
government/NN
./.
The/DT
Fed/NNP
exercises/VBZ
a/DT
power/NN
given/VBN
to/TO
it/PRP
by/IN
Congress/NNP
and/CC
the/DT
president/NN
./.
But/CC
Congress/NNP
and/CC
the/DT
president/NN
accept/VBP
no/DT
responsibility/NN
for/IN
the/DT
exercise/NN
of/IN
the/DT
power/NN
they/PRP
have/VBP
given/VBN
the/DT
Fed/NNP
./.
Critics/NNS
of/IN
the/DT
present/JJ
arrangement/NN
are/VBP
correct/JJ
to/TO
say/VB
that/IN
it/PRP
is/VBZ
undemocratic/JJ
./.
What/WP
is/VBZ
undemocratic/JJ
is/VBZ
the/DT
unwillingness/NN
of/IN
the/DT
more/RBR
political/JJ
parts/NNS
of/IN
the/DT
government/NN
to/TO
take/VB
the/DT
responsibility/NN
for/IN
deciding/VBG
the/DT
basic/JJ
question/NN
of/IN
monetary/JJ
policy/NN
,/,
which/WDT
is/VBZ
what/WDT
priority/NN
should/MD
be/VB
given/VBN
to/TO
stabilizing/VBG
the/DT
price/NN
level/NN
./.
To/TO
leave/VB
this/DT
decision/NN
to/TO
an/DT
``/``
independent/JJ
''/''
agency/NN
is/VBZ
not/RB
only/RB
undemocratic/JJ
./.
It/PRP
also/RB
prevents/VBZ
the/DT
conduct/NN
of/IN
a/DT
policy/NN
that/WDT
has/VBZ
a/DT
long-term/JJ
rationale/NN
,/,
because/IN
it/PRP
leaves/VBZ
the/DT
Fed/NNP
guessing/VBG
about/IN
what/WP
are/VBP
the/DT
expectations/NNS
of/IN
its/PRP$
masters/NNS
,/,
the/DT
politicians/NNS
,/,
who/WP
have/VBP
never/RB
had/VBN
to/TO
consider/VB
the/DT
long-term/JJ
consequences/NNS
of/IN
monetary/JJ
policy/NN
./.
The/DT
greatest/JJS
contribution/NN
Congress/NNP
could/MD
make/VB
at/IN
this/DT
time/NN
would/MD
be/VB
to/TO
declare/VB
that/IN
stabilizing/VBG
the/DT
price/NN
level/NN
is/VBZ
the/DT
primary/JJ
responsibility/NN
of/IN
the/DT
Federal/NNP
Reserve/NNP
System/NNP
./.
Legislation/NN
to/TO
this/DT
effect/NN
has/VBZ
been/VBN
introduced/VBN
in/IN
Congress/NNP
in/IN
this/DT
session/NN
by/IN
Rep./NNP
Stephen/NNP
Neal/NNP
D./NNP
,/,
N.C/NNP
./.
It/PRP
is/VBZ
not/RB
the/DT
kind/NN
of/IN
thing/NN
that/WDT
is/VBZ
likely/JJ
to/TO
be/VB
enacted/VBN
,/,
however/RB
./.
Congress/NNP
would/MD
be/VB
required/VBN
to/TO
make/VB
a/DT
hard/JJ
decision/NN
,/,
and/CC
Congress/NNP
would/MD
much/RB
prefer/VB
to/TO
leave/VB
the/DT
hard/JJ
decision/NN
to/TO
the/DT
Fed/NNP
and/CC
retain/VB
its/PRP$
rights/NNS
of/IN
complaint/NN
after/IN
the/DT
fact/NN
./.
People/NNS
will/MD
say/VB
that/IN
the/DT
nation/NN
and/CC
the/DT
government/NN
have/VBP
other/JJ
objectives/NNS
,/,
in/IN
addition/NN
to/TO
stabilizing/VBG
the/DT
price/NN
level/NN
,/,
which/WDT
is/VBZ
true/JJ
./.
But/CC
that/DT
is/VBZ
not/RB
the/DT
same/JJ
as/IN
saying/VBG
that/IN
the/DT
Federal/NNP
Reserve/NNP
has/VBZ
other/JJ
objectives/NNS
./.
The/DT
government/NN
has/VBZ
other/JJ
agencies/NNS
and/CC
instruments/NNS
for/IN
pursuing/VBG
these/DT
other/JJ
objectives/NNS
./.
But/CC
it/PRP
has/VBZ
only/RB
the/DT
Fed/NNP
to/TO
pursue/VB
price-level/JJ
stability/NN
./.
And/CC
the/DT
Fed/NNP
has/VBZ
at/IN
most/RBS
very/RB
limited/VBN
ability/NN
to/TO
contribute/VB
to/TO
the/DT
achievement/NN
of/IN
other/JJ
objectives/NNS
by/IN
means/NNS
other/JJ
than/IN
by/IN
stabilizing/VBG
the/DT
price/NN
level/NN
./.
The/DT
two/CD
objectives/NNS
most/RBS
commonly/RB
thought/VBN
to/TO
be/VB
legitimate/JJ
competitors/NNS
for/IN
the/DT
attention/NN
of/IN
the/DT
Fed/NNP
are/VBP
high/JJ
employment/NN
and/CC
rapid/JJ
real/JJ
growth/NN
./.
But/CC
the/DT
main/JJ
lesson/NN
of/IN
economic/JJ
policy/NN
in/IN
the/DT
past/JJ
30/CD
years/NNS
is/VBZ
that/IN
if/IN
the/DT
Fed/NNP
compromises/VBZ
with/IN
the/DT
price-stability/NN
objective/NN
in/IN
the/DT
pursuit/NN
of/IN
these/DT
other/JJ
goals/NNS
,/,
the/DT
result/NN
is/VBZ
not/RB
high/JJ
employment/NN
and/CC
rapid/JJ
growth/NN
but/CC
is/VBZ
inflation/NN
./.
A/DT
former/JJ
chairman/NN
of/IN
the/DT
president/NN
's/POS
Council/NNP
of/IN
Economic/NNP
Advisers/NNPS
,/,
Mr./NNP
Stein/NNP
is/VBZ
an/DT
American/NNP
Enterprise/NNP
Institute/NNP
fellow/NN
./.
Republic/NNP
New/NNP
York/NNP
Corp./NNP
joined/VBD
the/DT
list/NN
of/IN
banks/NNS
boosting/VBG
reserves/NNS
for/IN
losses/NNS
on/IN
loans/NNS
to/TO
less-developed/JJ
countries/NNS
,/,
setting/VBG
out/IN
a/DT
$/$
200/CD
million/CD
provision/NN
and/CC
posting/VBG
a/DT
$/$
155.4/CD
million/CD
third-quarter/NN
net/JJ
loss/NN
as/IN
a/DT
result/NN
./.
The/DT
per-share/JJ
loss/NN
was/VBD
$/$
5.32/CD
./.
In/IN
the/DT
year/NN
earlier/JJR
period/NN
,/,
the/DT
New/NNP
York/NNP
parent/NN
of/IN
Republic/NNP
National/NNP
Bank/NNP
had/VBD
net/JJ
income/NN
of/IN
$/$
38.7/CD
million/CD
,/,
or/CC
$/$
1.12/CD
a/DT
share/NN
./.
Excluding/VBG
the/DT
provision/NN
,/,
Republic/NNP
earned/VBD
$/$
44.6/CD
million/CD
,/,
up/IN
15/CD
%/NN
from/IN
a/DT
year/NN
ago/IN
./.
The/DT
bank/NN
's/POS
medium-term/JJ
and/CC
long-term/JJ
loans/NNS
to/TO
less-developed/JJ
countries/NNS
total/VBP
$/$
293/CD
million/CD
,/,
of/IN
which/WDT
$/$
146/CD
million/CD
are/VBP
n't/RB
accruing/VBG
interest/NN
,/,
the/DT
bank/NN
said/VBD
./.
Republic/NNP
's/POS
total/NN
of/IN
nonperforming/VBG
assets/NNS
was/VBD
$/$
167/CD
million/CD
at/IN
Sept./NNP
30/CD
,/,
with/IN
its/PRP$
reserve/NN
for/IN
loan/NN
losses/NNS
now/RB
standing/VBG
at/IN
$/$
357/CD
million/CD
./.
Abortion-rights/NNS
advocates/NNS
won/VBD
last/JJ
week/NN
's/POS
battles/NNS
,/,
but/CC
the/DT
war/NN
over/IN
the/DT
nation/NN
's/POS
most-contentious/JJS
social/JJ
question/NN
is/VBZ
about/IN
to/TO
pick/VB
up/IN
again/RB
on/IN
turf/NN
that/WDT
favors/VBZ
those/DT
seeking/VBG
to/TO
restrict/VB
abortions/NNS
./.
Strict/JJ
new/JJ
regulations/NNS
seem/VBP
certain/JJ
to/TO
pass/VB
the/DT
state/NN
House/NNP
in/IN
Pennsylvania/NNP
next/JJ
week/NN
,/,
with/IN
easy/JJ
approval/NN
by/IN
the/DT
Senate/NNP
and/CC
by/IN
Democratic/NNP
Gov./NNP
Bob/NNP
Casey/NNP
expected/VBN
shortly/RB
thereafter/RB
./.
Legislation/NN
to/TO
require/VB
the/DT
consent/NN
of/IN
parents/NNS
before/IN
their/PRP$
daughters/NNS
under/IN
the/DT
age/NN
of/IN
18/CD
can/MD
have/VB
abortions/NNS
will/MD
probably/RB
pass/VB
both/DT
houses/NNS
of/IN
the/DT
Michigan/JJ
legislature/NN
and/CC
set/VB
up/IN
a/DT
grinding/VBG
battle/NN
to/TO
override/VB
the/DT
expected/VBN
veto/NN
of/IN
Democratic/NNP
Gov./NNP
James/NNP
Blanchard/NNP
./.
The/DT
short-term/JJ
shift/NN
in/IN
the/DT
political/JJ
climate/NN
surrounding/VBG
abortion/NN
reflects/VBZ
two/CD
factors/NNS
that/WDT
are/VBP
likely/JJ
to/TO
govern/VB
the/DT
debate/NN
in/IN
the/DT
next/JJ
several/JJ
months/NNS
:/:
the/DT
reawakening/VBG
of/IN
the/DT
abortion-rights/NNS
movement/NN
as/IN
a/DT
potent/JJ
force/NN
after/IN
years/NNS
of/IN
lassitude/NN
,/,
and/CC
the/DT
ability/NN
of/IN
each/DT
side/NN
to/TO
counter/VB
the/DT
other/JJ
's/POS
advance/NN
in/IN
one/CD
arena/NN
with/IN
a/DT
victory/NN
of/IN
its/PRP$
own/JJ
elsewhere/NN
./.
The/DT
action/NN
in/IN
Pennsylvania/NNP
,/,
for/IN
example/NN
,/,
will/MD
follow/VB
last/JJ
week/NN
's/POS
collapse/NN
of/IN
a/DT
special/JJ
session/NN
of/IN
the/DT
Florida/NNP
legislature/NN
to/TO
enact/VB
restrictions/NNS
on/IN
abortions/NNS
in/IN
that/DT
state/NN
,/,
and/CC
the/DT
vote/NN
here/RB
in/IN
Washington/NNP
by/IN
the/DT
House/NNP
to/TO
permit/VB
federally/RB
paid/VBN
abortions/NNS
for/IN
poor/JJ
women/NNS
who/WP
are/VBP
victims/NNS
of/IN
rape/NN
or/CC
incest/NN
./.
But/CC
President/NNP
Bush/NNP
is/VBZ
expected/VBN
to/TO
veto/VB
the/DT
congressional/JJ
legislation/NN
and/CC
that/IN
,/,
along/IN
with/IN
the/DT
easy/JJ
approval/NN
of/IN
the/DT
Pennsylvania/NNP
measure/NN
,/,
is/VBZ
likely/JJ
to/TO
mute/VB
the/DT
abortion-rights/NNS
activists/NNS
'/POS
claims/NNS
of/IN
momentum/NN
and/CC
underline/VB
the/DT
challenges/NNS
faced/VBN
by/IN
this/DT
resurgent/JJ
movement/NN
./.
``/``
It/PRP
's/VBZ
great/JJ
to/TO
feel/VB
good/JJ
for/IN
once/RB
in/IN
15/CD
years/NNS
,/,
''/''
says/VBZ
Harrison/NNP
Hickman/NNP
,/,
a/DT
consultant/NN
to/TO
abortion-rights/NNS
advocates/NNS
,/,
reflecting/VBG
the/DT
relief/NN
of/IN
his/PRP$
compatriots/NNS
after/IN
last/JJ
week/NN
's/POS
victories/NNS
,/,
the/DT
first/JJ
major/JJ
events/NNS
since/IN
the/DT
Supreme/NNP
Court/NNP
,/,
in/IN
its/PRP$
July/NNP
3/CD
Webster/NNP
decision/NN
,/,
permitted/VBD
the/DT
states/NNS
to/TO
enact/VB
restrictions/NNS
on/IN
abortions/NNS
./.
``/``
But/CC
how/WRB
many/JJ
more/JJR
times/NNS
we/PRP
're/VBP
going/VBG
to/TO
feel/VB
good/JJ
in/IN
the/DT
next/JJ
15/CD
is/VBZ
another/DT
question/NN
./.
''/''
Indeed/RB
,/,
abortion-rights/NNS
activists/NNS
still/RB
face/VBP
their/PRP$
greatest/JJS
tests/NNS
./.
``/``
The/DT
pro-choice/JJ
movement/NN
has/VBZ
shown/VBN
--/:
finally/RB
--/:
that/IN
it/PRP
can/MD
mobilize/VB
,/,
''/''
says/VBZ
Glen/NNP
Halva-Neubauer/NNP
,/,
a/DT
Furman/NNP
University/NNP
political/JJ
scientist/NN
who/WP
specializes/VBZ
in/IN
how/WRB
state/NN
legislators/NNS
handle/VBP
the/DT
abortion/NN
question/NN
./.
``/``
But/CC
it/PRP
still/RB
has/VBZ
n't/RB
shown/VBN
that/IN
it/PRP
can/MD
win/VB
in/IN
a/DT
state/NN
like/IN
Pennsylvania/NNP
or/CC
Missouri/NNP
,/,
where/WRB
abortion/NN
has/VBZ
been/VBN
clearly/RB
an/DT
electoral/JJ
issue/NN
and/CC
where/WRB
it/PRP
's/VBZ
been/VBN
an/DT
emotional/JJ
issue/NN
for/IN
a/DT
long/JJ
time/NN
./.
''/''
The/DT
foes/NNS
of/IN
abortion/NN
hold/VBP
the/DT
strong/JJ
whip/NN
hand/NN
in/IN
Pennsylvania/NNP
,/,
where/WRB
abortion-rights/NNS
activists/NNS
are/VBP
so/RB
much/RB
on/IN
the/DT
defensive/NN
that/IN
their/PRP$
strategy/NN
is/VBZ
less/JJR
to/TO
fight/VB
the/DT
proposed/VBN
legislation/NN
than/IN
it/PRP
is/VBZ
to/TO
stress/VB
how/WRB
the/DT
state/NN
legislature/NN
does/VBZ
n't/RB
reflect/VB
the/DT
viewpoints/NNS
of/IN
the/DT
state/NN
's/POS
citizens/NNS
./.
As/IN
a/DT
result/NN
,/,
GOP/NNP
state/NN
Rep./NNP
Stephen/NNP
Freind/NNP
of/IN
Delaware/NNP
County/NNP
,/,
the/DT
legislature/NN
's/POS
leading/VBG
foe/NN
of/IN
abortion/NN
,/,
has/VBZ
been/VBN
given/VBN
all/DT
but/CC
free/JJ
rein/NN
to/TO
press/VB
a/DT
strict/JJ
seven-point/JJ
plan/NN
to/TO
restrict/VB
abortion/NN
and/CC
,/,
he/PRP
hopes/VBZ
,/,
to/TO
force/VB
the/DT
Supreme/NNP
Court/NNP
directly/RB
to/TO
reassess/NN
its/PRP$
1973/CD
Roe/NNP
v./CC
Wade/NNP
decision/NN
that/WDT
established/VBD
the/DT
right/NN
of/IN
abortion/NN
in/IN
the/DT
first/JJ
place/NN
./.
The/DT
Freind/NNP
legislation/NN
--/:
the/DT
state/NN
's/POS
House/NNP
Judiciary/NNP
Committee/NNP
approved/VBD
it/PRP
in/IN
Harrisburg/NN
this/DT
week/NN
and/CC
the/DT
full/JJ
Pennsylvania/NNP
House/NNP
is/VBZ
expected/VBN
to/TO
take/VB
up/IN
the/DT
bill/NN
next/IN
Tuesday/NNP
--/:
includes/VBZ
a/DT
provision/NN
to/TO
ban/VB
abortions/NNS
after/IN
24/CD
weeks/NNS
of/IN
pregnancy/NN
,/,
except/IN
to/TO
avert/VB
the/DT
death/NN
of/IN
the/DT
mother/NN
./.
Mr./NNP
Freind/NNP
calculates/VBZ
that/IN
the/DT
provision/NN
,/,
which/WDT
attacks/VBZ
the/DT
trimester/NN
standards/NNS
that/IN
Roe/NNP
established/VBD
,/,
will/MD
``/``
make/VB
it/PRP
necessary/JJ
''/''
for/IN
the/DT
Supreme/NNP
Court/NNP
to/TO
review/VB
Roe/NNP
and/CC
,/,
perhaps/RB
,/,
to/TO
overturn/VB
it/PRP
./.
But/CC
the/DT
Pennsylvania/NNP
measure/NN
also/RB
includes/VBZ
an/DT
``/``
informed/JJ
consent/NN
''/''
provision/NN
that/WDT
may/MD
become/VB
widely/RB
imitated/VBN
by/IN
abortion/NN
foes/NNS
who/WP
want/VBP
to/TO
make/VB
women/NNS
contemplating/VBG
abortion/NN
as/RB
uncomfortable/JJ
as/IN
possible/JJ
with/IN
the/DT
procedure/NN
and/CC
with/IN
themselves/PRP
./.
Under/IN
this/DT
legislation/NN
,/,
a/DT
woman/NN
must/MD
be/VB
informed/VBN
24/CD
hours/NNS
before/IN
the/DT
operation/NN
of/IN
the/DT
details/NNS
of/IN
the/DT
procedure/NN
and/CC
its/PRP$
risks/NNS
./.
``/``
Regardless/RB
of/IN
whether/IN
one/NN
supports/VBZ
or/CC
opposes/VBZ
the/DT
right/NN
to/TO
an/DT
abortion/NN
,/,
''/''
Mr./NNP
Freind/NNP
argues/VBZ
,/,
``/``
it/PRP
is/VBZ
virtually/RB
impossible/JJ
for/IN
any/DT
rational/JJ
human/NN
being/VBG
to/TO
disagree/VB
with/IN
the/DT
concept/NN
that/IN
a/DT
woman/NN
has/VBZ
the/DT
right/JJ
to/TO
have/VB
all/DT
of/IN
the/DT
appropriate/JJ
materials/NNS
and/CC
advice/NN
made/VBN
available/JJ
to/TO
her/PRP
before/IN
she/PRP
makes/VBZ
a/DT
decision/NN
which/WDT
,/,
one/CD
way/NN
or/CC
the/DT
other/JJ
,/,
might/MD
remain/VB
with/IN
her/PRP
for/IN
the/DT
rest/NN
of/IN
her/PRP$
life/NN
./.
''/''
In/IN
Michigan/NNP
,/,
where/WRB
the/DT
state/NN
Senate/NNP
is/VBZ
expected/VBN
to/TO
approve/VB
parental-consent/JJ
legislation/NN
by/IN
the/DT
end/NN
of/IN
next/JJ
week/NN
,/,
Gov./NNP
Blanchard/NNP
is/VBZ
the/DT
principal/JJ
obstacle/NN
for/IN
anti-abortionists/NNS
./.
Susan/NNP
Rogin/NNP
,/,
a/DT
consultant/NN
to/TO
abortion-rights/NNS
activists/NNS
in/IN
the/DT
state/NN
,/,
takes/VBZ
comfort/NN
from/IN
the/DT
fact/NN
that/IN
the/DT
state/NN
's/POS
House/NNP
abortion/NN
opponents/NNS
``/``
have/VBP
n't/RB
been/VBN
able/JJ
to/TO
muster/VB
the/DT
votes/NNS
to/TO
overturn/VB
a/DT
veto/NN
on/IN
abortion/NN
in/IN
16/CD
years/NNS
./.
''/''
But/CC
proponents/NNS
believe/VBP
they/PRP
may/MD
be/VB
able/JJ
to/TO
shake/VB
enough/JJ
votes/NNS
loose/JJ
to/TO
override/VB
the/DT
veto/NN
if/IN
they/PRP
are/VBP
successful/JJ
in/IN
portraying/VBG
the/DT
legislation/NN
as/IN
a/DT
matter/NN
of/IN
parents/NNS
'/POS
rights/NNS
./.
In/IN
Illinois/NNP
,/,
lawmakers/NNS
will/MD
vote/VB
before/IN
next/JJ
spring/NN
on/IN
legislation/NN
requiring/VBG
physicians/NNS
to/TO
perform/VB
tests/NNS
on/IN
fetuses/NNS
at/IN
20/CD
weeks/NNS
to/TO
determine/VB
their/PRP$
gestational/JJ
age/NN
,/,
weight/NN
and/CC
lung/NN
maturity/NN
along/IN
with/IN
a/DT
provision/NN
requiring/VBG
that/IN
,/,
if/IN
fetuses/NNS
survive/VBP
an/DT
abortion/NN
,/,
a/DT
second/JJ
doctor/NN
must/MD
be/VB
on/IN
hand/NN
to/TO
help/VB
it/PRP
survive/VB
./.
The/DT
legislation/NN
failed/VBD
by/IN
one/CD
vote/NN
to/TO
clear/VB
the/DT
House/NNP
Rules/NNPS
Committee/NNP
Tuesday/NNP
,/,
but/CC
anti-abortionists/NNS
still/RB
may/MD
succeed/VB
in/IN
bringing/VBG
the/DT
measure/NN
to/TO
the/DT
floor/NN
this/DT
fall/NN
./.
Pamela/NNP
Sutherland/NNP
,/,
executive/JJ
director/NN
of/IN
the/DT
Illinois/NNP
Planned/NNP
Parenthood/NNP
Council/NNP
,/,
says/VBZ
she/PRP
and/CC
her/PRP$
allies/NNS
are/VBP
``/``
cautiously/RB
optimistic/JJ
''/''
they/PRP
can/MD
defeat/VB
it/PRP
if/IN
it/PRP
comes/VBZ
to/TO
a/DT
floor/NN
vote/NN
./.
Abortion/NN
foes/NNS
in/IN
Wisconsin/NNP
,/,
meanwhile/RB
,/,
expect/VBP
a/DT
parental-consent/JJ
bill/NN
to/TO
be/VB
sent/VBN
to/TO
the/DT
state/NN
assembly/NN
floor/NN
by/IN
early/JJ
November/NNP
and/CC
are/VBP
hopeful/JJ
of/IN
prevailing/VBG
in/IN
both/DT
houses/NNS
by/IN
next/JJ
March/NNP
./.
In/IN
Texas/NNP
,/,
abortion/NN
opponents/NNS
want/VBP
to/TO
pass/VB
parental-consent/JJ
legislation/NN
along/IN
with/IN
a/DT
statewide/JJ
ban/NN
on/IN
the/DT
use/NN
of/IN
public/JJ
funds/NNS
,/,
personnel/NNS
and/CC
facilities/NNS
for/IN
abortion/NN
,/,
and/CC
viability/NN
tests/NNS
for/IN
fetuses/NNS
19/CD
weeks/NNS
and/CC
older/JJR
./.
The/DT
anti-abortionists/NNS
are/VBP
urging/VBG
GOP/NNP
Gov./NNP
Bill/NNP
Clements/NNP
to/TO
press/VB
the/DT
issues/NNS
in/IN
a/DT
special/JJ
session/NN
scheduled/VBN
to/TO
run/VB
Nov./NNP
14/CD
to/TO
Dec./NNP
13/CD
./.
``/``
The/DT
prognosis/NN
is/VBZ
only/RB
fair/JJ
,/,
''/''
says/VBZ
Kathie/NNP
Roberts/NNP
,/,
administrative/JJ
director/NN
of/IN
the/DT
Texas/NNP
Right/NNP
to/TO
Life/NNP
Committee/NNP
./.
``/``
Next/JJ
year/NN
is/VBZ
an/DT
election/NN
year/NN
and/CC
the/DT
legislators/NNS
just/RB
do/VBP
n't/RB
want/VB
to/TO
do/VB
anything/NN
about/IN
this/DT
now/RB
./.
''/''
This/DT
legislative/JJ
activity/NN
comes/VBZ
as/IN
both/DT
sides/NNS
are/VBP
undertaking/VBG
new/JJ
mobilization/NN
efforts/NNS
,/,
plunging/VBG
into/IN
gubernatorial/JJ
races/NNS
in/IN
Virginia/NNP
and/CC
New/NNP
Jersey/NNP
,/,
and/CC
girding/VBG
for/IN
next/JJ
autumn/NN
's/POS
state/NN
elections/NNS
./.
At/IN
the/DT
same/JJ
time/NN
,/,
abortion/NN
foes/NNS
have/VBP
developed/VBN
a/DT
national/JJ
legislative/JJ
strategy/NN
,/,
deciding/VBG
to/TO
move/VB
on/IN
what/WP
Jacki/NNP
Ragan/NNP
,/,
the/DT
National/NNP
Right/NNP
to/TO
Life/NNP
Committee/NNP
's/POS
director/NN
of/IN
state/NN
organizational/JJ
development/NN
,/,
calls/VBZ
``/``
reasonable/JJ
measures/NNS
that/IN
an/DT
overwhelming/JJ
mainstream/NN
majority/NN
of/IN
Americans/NNPS
support/VBP
./.
''/''
These/DT
include/VBP
bans/NNS
on/IN
the/DT
use/NN
of/IN
abortion/NN
for/IN
birth/NN
control/NN
and/CC
sex/NN
selection/NN
,/,
and/CC
the/DT
public/NN
funding/NN
of/IN
alternatives/NNS
for/IN
abortion/NN
./.
``/``
Those/DT
who/WP
are/VBP
on/IN
the/DT
other/JJ
side/NN
can/MD
hardly/RB
oppose/VB
alternative/NN
funding/NN
if/IN
they/PRP
continue/VBP
to/TO
insist/VB
on/IN
calling/VBG
themselves/PRP
`/``
pro-choice/JJ
'/''
rather/RB
than/IN
`/``
pro-abortion/JJ
,/,
'/''
''/''
says/VBZ
Mary/NNP
Spaulding/NNP
,/,
the/DT
group/NN
's/POS
associate/JJ
state/NN
legislative/JJ
coordinator/NN
./.
Over/IN
the/DT
weekend/NN
,/,
the/DT
National/NNP
Abortion/NNP
Rights/NNPS
Action/NNP
League/NNP
singled/VBD
out/IN
eight/CD
politicians/NNS
,/,
including/VBG
Pennsylvania/NNP
's/POS
Mr./NNP
Freind/NNP
,/,
as/IN
1990/CD
targets/NNS
and/CC
held/VBD
a/DT
Washington/NNP
seminar/NN
designed/VBN
to/TO
train/VB
its/PRP$
leaders/NNS
in/IN
political/JJ
techniques/NNS
,/,
including/VBG
how/WRB
to/TO
put/VB
the/DT
anti-abortionists/NNS
on/IN
the/DT
defensive/NN
in/IN
state/NN
legislatures/NNS
./.
``/``
We/PRP
now/RB
see/VBP
pro-choice/JJ
legislators/NNS
going/VBG
on/IN
the/DT
offensive/NN
for/IN
the/DT
first/JJ
time/NN
,/,
''/''
says/VBZ
Kate/NNP
Michelman/NNP
,/,
executive/JJ
director/NN
of/IN
the/DT
group/NN
./.
Wall/NNP
Street/NNP
When/WRB
I/PRP
was/VBD
just/RB
a/DT
child/NN
And/CC
confronted/VBN
by/IN
my/PRP$
fears/NNS
,/,
The/DT
things/NNS
that/IN
I/PRP
thought/VBD
would/MD
get/VB
me/PRP
Had/VBD
fangs/NNS
and/CC
pointed/JJ
ears/NNS
./.
Nothing/NN
much/RB
has/VBZ
changed/VBN
--/:
My/PRP$
periodic/JJ
scares/NNS
Are/VBP
still/RB
from/IN
hostile/JJ
animals/NNS
,/,
Only/RB
now/RB
,/,
they/PRP
're/VBP
bulls/NNS
and/CC
bears/NNS
./.
--/:
Pat/NNP
D'Amico/NNP
./.
Daffynition/NN
Trained/VBN
dolphins/NNS
:/:
pur-poises/NNS
./.
--/:
Marrill/NNP
J./NNP
Pederson/NNP
./.
This/DT
maker/NN
and/CC
marketer/NN
of/IN
cartridge/NN
tape/NN
systems/NNS
said/VBD
it/PRP
completed/VBD
the/DT
sale/NN
of/IN
2.85/CD
million/CD
shares/NNS
of/IN
common/JJ
priced/VBN
at/IN
$/$
10/CD
a/DT
share/NN
in/IN
an/DT
initial/JJ
public/JJ
offering/NN
./.
The/DT
company/NN
said/VBD
that/IN
it/PRP
is/VBZ
selling/VBG
two/CD
million/CD
shares/NNS
and/CC
that/IN
the/DT
rest/NN
are/VBP
being/VBG
sold/VBN
by/IN
certain/JJ
stockholders/NNS
./.
Proceeds/NNS
will/MD
be/VB
used/VBN
for/IN
capital/NN
expenditures/NNS
and/CC
working/VBG
capital/NN
./.
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
and/CC
Montgomery/NNP
Securities/NNPS
Inc./NNP
are/VBP
co-managing/VBG
the/DT
offering/NN
./.
Congress/NNP
sent/VBD
President/NNP
Bush/NNP
an/DT
$/$
18.4/CD
billion/CD
fiscal/JJ
1990/CD
Treasury/NN
and/CC
Postal/JJ
Service/NN
bill/NN
providing/VBG
$/$
5.5/CD
billion/CD
for/IN
the/DT
Internal/NNP
Revenue/NNP
Service/NNP
and/CC
increasing/VBG
the/DT
Customs/NNP
Service/NNP
's/POS
air-interdiction/NN
program/NN
nearly/RB
a/DT
third/JJ
./.
Final/JJ
approval/NN
came/VBD
on/IN
a/DT
simple/JJ
voice/NN
vote/NN
in/IN
the/DT
Senate/NNP
,/,
and/CC
the/DT
swift/JJ
passage/NN
contrasted/VBN
with/IN
months/NNS
of/IN
negotiations/NNS
over/IN
the/DT
underlying/VBG
bill/NN
which/WDT
is/VBZ
laced/VBN
with/IN
special-interest/JJ
provisions/NNS
for/IN
both/DT
members/NNS
and/CC
the/DT
executive/NN
branch/NN
./.
An/DT
estimated/VBN
$/$
33/CD
million/CD
was/VBD
added/VBN
for/IN
university/NN
and/CC
science/NN
grants/NNS
,/,
including/VBG
$/$
1.5/CD
million/CD
for/IN
Smith/NNP
College/NNP
./.
And/CC
Southwest/NNP
lawmakers/NNS
were/VBD
a/DT
driving/VBG
force/NN
behind/IN
$/$
54.6/CD
million/CD
for/IN
U.S.-Mexico/JJ
border/NN
facilities/NNS
,/,
or/CC
more/RBR
than/IN
double/JJ
the/DT
administration/NN
's/POS
request/NN
./.
More/JJR
than/IN
$/$
1.8/CD
million/CD
is/VBZ
allocated/VBN
for/IN
pensions/NNS
and/CC
expenses/NNS
for/IN
former/JJ
presidents/NNS
,/,
and/CC
the/DT
budget/NN
for/IN
the/DT
official/JJ
residence/NN
of/IN
Vice/NNP
President/NNP
Quayle/NNP
is/VBZ
more/RBR
than/IN
doubled/VBN
,/,
with/IN
$/$
200,000/CD
designated/VBN
for/IN
improvements/NNS
to/TO
the/DT
property/NN
./.
Even/RB
the/DT
Office/NNP
of/IN
Management/NNP
and/CC
Budget/NNP
is/VBZ
remembered/VBN
with/IN
an/DT
extra/JJ
$/$
1/CD
million/CD
to/TO
help/VB
offset/VB
pay/NN
costs/NNS
that/IN
other/JJ
government/NN
departments/NNS
are/VBP
being/VBG
asked/VBD
to/TO
absorb/VB
./.
Within/IN
the/DT
IRS/NNP
,/,
nearly/RB
$/$
1.95/CD
billion/CD
is/VBZ
provided/VBN
for/IN
processing/VBG
tax/NN
returns/NNS
,/,
a/DT
12/CD
%/NN
increase/NN
over/IN
fiscal/JJ
1989/CD
and/CC
double/JJ
what/WP
the/DT
government/NN
was/VBD
spending/VBG
five/CD
years/NNS
ago/RB
./.
Investigation/NN
and/CC
taxpayer/NN
service/NN
accounts/NNS
would/MD
grow/VB
to/TO
$/$
1.6/CD
billion/CD
,/,
and/CC
Congress/NNP
specifically/RB
added/VBD
$/$
7.4/CD
million/CD
for/IN
stepped/VBN
up/RB
criminal/JJ
investigations/NNS
of/IN
money/NN
laundering/NN
related/VBN
to/TO
drug/NN
traffic/NN
./.
The/DT
large/JJ
increase/NN
in/IN
Customs/NNP
Service/NNP
air-interdiction/NN
funds/NNS
is/VBZ
also/RB
intended/JJ
to/TO
counter/VB
smuggling/NN
,/,
and/CC
the/DT
annual/JJ
appropriations/NNS
level/NN
has/VBZ
more/RBR
than/IN
quadrupled/VBN
in/IN
five/CD
years/NNS
./.
The/DT
$/$
196.7/CD
million/CD
provided/VBN
for/IN
fiscal/JJ
1990/CD
anticipates/VBZ
the/DT
purchase/NN
of/IN
a/DT
Lockheed/NNP
P-3/NN
surveillance/NN
aircraft/NN
and/CC
five/CD
Cessna/NNP
Citation/NNP
II/NNP
jets/NNS
./.
Despite/IN
administration/NN
reservations/NNS
,/,
the/DT
plan/NN
has/VBZ
had/VBN
the/DT
quiet/JJ
backing/NN
of/IN
customs/NNS
officials/NNS
as/RB
well/RB
as/IN
influential/JJ
lawmakers/NNS
from/IN
Cessna/NNP
's/POS
home/NN
state/NN
,/,
Kansas/NNP
./.
Among/IN
legislative/JJ
provisions/NNS
attached/VBN
to/TO
the/DT
bill/NN
is/VBZ
a/DT
ban/NN
on/IN
any/DT
Treasury/NNP
Department/NNP
expenditure/NN
for/IN
enforcement/NN
of/IN
a/DT
1986/CD
tax/NN
provision/NN
intended/VBN
to/TO
counter/JJ
discrimination/NN
in/IN
employee-benefit/NN
plans/NNS
./.
Small-business/NN
interests/NNS
have/VBP
lobbied/VBN
against/IN
the/DT
so-called/JJ
Section/NN
89/CD
tax/NN
rules/NNS
./.
Repeal/NN
is/VBZ
considered/VBN
likely/RB
now/RB
,/,
but/CC
the/DT
Treasury/NNP
Department/NNP
bill/NN
has/VBZ
been/VBN
used/VBN
as/IN
a/DT
vehicle/NN
to/TO
raise/VB
the/DT
profile/NN
of/IN
the/DT
issue/NN
and/CC
block/VB
any/DT
action/NN
in/IN
the/DT
interim/NN
./.
Less/RBR
noticed/JJ
is/VBZ
a/DT
bit/NN
of/IN
legislative/JJ
legerdemain/NN
by/IN
Houston/NNP
Republicans/NNPS
on/IN
behalf/NN
of/IN
HEI/NNP
Corp./NNP
of/IN
Texas/NNP
to/TO
retroactively/RB
``/``
move/VB
''/''
a/DT
Missouri/NNP
hospital/NN
from/IN
one/CD
county/NN
to/TO
the/DT
next/JJ
to/TO
justify/VB
higher/JJR
Medicare/NNP
reimbursements/NNS
./.
The/DT
provision/NN
seeks/VBZ
to/TO
wipe/VB
out/RB
an/DT
estimated/VBN
$/$
1.4/CD
million/CD
in/IN
claims/NNS
made/VBN
by/IN
the/DT
Health/NNP
Care/NNP
Finance/NNP
Administration/NNP
against/IN
HEI/NNP
,/,
which/WDT
owned/VBD
the/DT
hospital/NN
in/IN
Sullivan/NNP
,/,
Mo./NNP
,/,
during/IN
most/RBS
of/IN
the/DT
four-year/JJ
period/NN
--/:
1983-1987/CD
--/:
covered/VBN
in/IN
the/DT
amendment/NN
./.
In/IN
a/DT
separate/JJ
development/NN
,/,
a/DT
private/JJ
meeting/NN
is/VBZ
scheduled/VBN
this/DT
morning/NN
between/IN
House/NNP
Appropriations/NNPS
Committee/NNP
Chairman/NNP
Jamie/NNP
Whitten/NNP
D./NNP
,/,
Miss/NNP
./.
Sen./NNP
Dale/NNP
Bumpers/NNP
D./NNP
,/,
Ark/NNP
./.
an/DT
effort/NN
to/TO
end/VB
a/DT
dispute/NN
which/WDT
for/IN
two/CD
weeks/NNS
has/VBZ
delayed/VBN
action/NN
on/IN
an/DT
estimated/VBN
$/$
44/CD
billion/CD
agriculture/NN
bill/NN
./.
A/DT
House-Senate/JJ
conference/NN
reached/VBD
agreement/NN
Oct./NNP
5/CD
on/IN
virtually/RB
all/DT
major/JJ
provisions/NNS
of/IN
the/DT
bill/NN
,/,
but/CC
final/JJ
settlement/NN
has/VBZ
been/VBN
stalled/VBN
because/RB
of/IN
differences/NNS
between/IN
the/DT
two/CD
men/NNS
over/IN
the/DT
fate/NN
of/IN
a/DT
modest/JJ
Arkansas-based/JJ
program/NN
to/TO
provide/VB
technical/JJ
information/NN
to/TO
farmers/NNS
seeking/VBG
to/TO
reduce/VB
their/PRP$
dependence/NN
on/IN
chemical/NN
fertilizers/NNS
and/CC
pesticides/NNS
./.
The/DT
program/NN
's/POS
nonprofit/JJ
sponsors/NNS
received/VBD
$/$
900,000/CD
in/IN
fiscal/JJ
1989/CD
through/IN
an/DT
Extension/NNP
Service/NNP
grant/NN
,/,
but/CC
Mr./NNP
Whitten/NNP
has/VBZ
been/VBN
adamant/JJ
in/IN
insisting/VBG
that/IN
the/DT
program/NN
be/VB
cut/VBN
in/IN
1990/CD
./.
The/DT
79-year-old/JJ
Mississippian/NNP
takes/VBZ
a/DT
more/JJR
orthodox/NN
,/,
entrenched/JJ
view/NN
of/IN
agriculture/NN
policy/NN
than/IN
those/DT
in/IN
the/DT
movement/NN
to/TO
reduce/VB
chemical/NN
use/NN
,/,
but/CC
as/IN
a/DT
master/NN
of/IN
pork-barrel/JJ
politics/NNS
,/,
he/PRP
is/VBZ
believed/VBN
to/TO
be/VB
annoyed/VBN
as/RB
well/RB
that/IN
the/DT
project/NN
moved/VBN
to/TO
Arkansas/NNP
from/IN
a/DT
Tennessee/NNP
center/NN
near/IN
Memphis/NNP
and/CC
the/DT
northern/JJ
Mississippi/NNP
border/NN
./.
Michael/NNP
F./NNP
Klatman/NNP
,/,
director/NN
of/IN
corporate/JJ
public/JJ
relations/NNS
at/IN
Data/NNP
General/NNP
Corp./NNP
,/,
was/VBD
named/VBN
to/TO
the/DT
new/JJ
position/NN
of/IN
vice/NN
president/NN
,/,
corporate/JJ
communications/NNS
,/,
of/IN
this/DT
maker/NN
of/IN
data/NNS|NN
storage/NN
equipment/NN
./.
B.A.T/NNP
Industries/NNPS
PLC/NNP
may/MD
delay/VB
aspects/NNS
of/IN
its/PRP$
defensive/JJ
restructuring/NN
plan/NN
--/:
including/VBG
the/DT
sale/NN
of/IN
its/PRP$
Saks/NNP
Fifth/NNP
Avenue/NNP
and/CC
Marshall/NNP
Field/NNP
units/NNS
--/:
in/IN
the/DT
wake/NN
of/IN
the/DT
current/JJ
upheaval/NN
in/IN
financial/JJ
markets/NNS
,/,
company/NN
officials/NNS
said/VBD
./.
The/DT
British/JJ
conglomerate/NN
,/,
planning/VBG
its/PRP$
own/JJ
defensive/JJ
restructuring/NN
to/TO
fight/VB
off/RP
a/DT
#/#
13.35/CD
billion/CD
$/$
21.03/CD
billion/CD
takeover/NN
bid/NN
by/IN
Anglo-French/JJ
financier/NN
Sir/NNP
James/NNP
Goldsmith/NNP
,/,
intends/VBZ
to/TO
press/VB
ahead/RB
with/IN
an/DT
extraordinary/JJ
shareholder/NN
vote/NN
today/NN
to/TO
clear/VB
the/DT
way/NN
for/IN
its/PRP$
value-boosting/JJ
measures/NNS
./.
If/IN
anything/NN
,/,
the/DT
gyrations/NNS
in/IN
world/NN
stock/NN
markets/NNS
--/:
and/CC
in/IN
B.A.T/NNP
's/POS
share/NN
price/NN
--/:
since/IN
last/JJ
Friday/NNP
's/POS
sharp/JJ
Wall/NNP
Street/NNP
sell-off/NNS
have/VBP
increased/VBN
the/DT
likelihood/NN
of/IN
shareholder/NN
approval/NN
for/IN
the/DT
restructuring/NN
,/,
analysts/NNS
and/CC
several/JJ
big/JJ
institutional/JJ
holders/NNS
said/VBD
./.
``/``
Thank/VB
God/NNP
we/PRP
have/VBP
some/DT
deal/NN
on/IN
the/DT
table/NN
,/,
''/''
said/VBD
Stewart/NNP
Gilchrist/NNP
,/,
a/DT
director/NN
at/IN
Scottish/NNP
Amicable/NNP
Investment/NNP
Managers/NNPS
,/,
which/WDT
intends/VBZ
to/TO
vote/VB
its/PRP$
roughly/RB
1/CD
%/NN
stake/NN
in/IN
favor/NN
of/IN
the/DT
restructuring/NN
./.
Investors/NNS
in/IN
B.A.T/NNP
have/VBP
been/VBN
on/IN
a/DT
roller/NN
coaster/NN
./.
B.A.T/NNP
has/VBZ
been/VBN
London/NNP
's/POS
best-performing/JJS
blue/JJ
chip/NN
over/IN
the/DT
past/JJ
six/CD
months/NNS
,/,
up/IN
40/CD
%/NN
against/IN
a/DT
4/CD
%/NN
rise/NN
in/IN
the/DT
Financial/NNP
Times/NNP
100-Share/NNP
Index/NNP
./.
But/CC
this/DT
week/NN
,/,
B.A.T/NNP
has/VBZ
been/VBN
hit/VBN
harder/RBR
than/IN
other/JJ
big/JJ
U.K./NNP
stocks/NNS
--/:
first/RB
by/IN
the/DT
market/NN
gyrations/NNS
,/,
then/RB
by/IN
Tuesday/NNP
's/POS
San/NNP
Francisco/NNP
earthquake/NN
,/,
which/WDT
could/MD
leave/VB
B.A.T/NNP
's/POS
Farmers/NNPS
Group/NNP
Inc./NNP
insurance/NN
unit/NN
facing/VBG
big/JJ
claims/NNS
./.
B.A.T/NNP
rose/VBD
five/CD
pence/NN
eight/CD
cents/NNS
756/CD
pence/NN
$/$
11.91/CD
London/NNP
yesterday/NN
as/IN
a/DT
late/JJ
market/NN
rally/NN
erased/VBD
a/DT
28-pence/JJ
fall/NN
earlier/RB
in/IN
the/DT
day/NN
./.
To/TO
fight/VB
off/RP
predators/NNS
,/,
B.A.T/NN
plans/NNS
to/TO
spin/VB
off/RP
about/IN
$/$
6/CD
billion/CD
in/IN
assets/NNS
,/,
largely/RB
by/IN
selling/VBG
such/JJ
U.S./NNP
retailing/NN
units/NNS
as/IN
Marshall/NNP
Field/NNP
and/CC
Saks/NNP
and/CC
by/IN
floating/VBG
its/PRP$
big/JJ
paper/NN
and/CC
U.K./NNP
retailing/NN
business/NN
via/IN
share/NN
issues/NNS
to/TO
existing/VBG
holders/NNS
./.
Proceeds/NNS
will/MD
help/VB
pay/VB
for/IN
a/DT
planned/JJ
buy-back/NN
of/IN
10/CD
%/NN
of/IN
its/PRP$
shares/NNS
and/CC
a/DT
50/CD
%/NN
dividend/NN
increase/NN
./.
``/``
I/PRP
think/VBP
the/DT
restructuring/NN
will/MD
get/VB
the/DT
required/JJ
support/NN
,/,
''/''
said/VBD
Michael/NNP
Pacitti/NNP
,/,
an/DT
analyst/NN
at/IN
London/NNP
stockbroker/NN
UBS/NNP
Phillips/NNP
&/CC
Drew/NNP
./.
``/``
The/DT
shareholders/NNS
effectively/RB
will/MD
support/VB
the/DT
share/NN
price/NN
by/IN
clearing/VBG
the/DT
share/NN
buy-back/NN
./.
''/''
But/CC
B.A.T/NNP
's/POS
restructuring/NN
,/,
which/WDT
was/VBD
never/RB
going/VBG
to/TO
happen/VB
quickly/RB
,/,
now/RB
will/MD
take/VB
longer/RBR
because/IN
of/IN
the/DT
market/NN
upheaval/NN
./.
Company/NN
officials/NNS
,/,
holders/NNS
and/CC
analysts/NNS
who/WP
previously/RB
expected/VBD
the/DT
disposals/NNS
to/TO
be/VB
substantially/RB
complete/JJ
by/IN
the/DT
end/NN
of/IN
next/JJ
year/NN
's/VBZ
first/JJ
half/NN
now/RB
say/VBP
the/DT
market/NN
gyrations/NNS
could/MD
delay/VB
the/DT
actions/NNS
well/RB
into/IN
the/DT
second/JJ
half/NN
./.
``/``
We/PRP
are/VBP
n't/RB
forced/VBN
sellers/NNS
./.
We/PRP
do/VBP
n't/RB
have/VB
an/DT
absolute/JJ
deadline/NN
and/CC
if/IN
market/NN
conditions/NNS
are/VBP
truly/RB
awful/JJ
we/PRP
might/MD
decide/VB
it/PRP
is/VBZ
not/RB
the/DT
right/JJ
time/NN
,/,
''/''
to/TO
take/VB
particular/JJ
steps/NNS
,/,
said/VBD
Michael/NNP
Prideaux/NNP
,/,
a/DT
B.A.T/NNP
spokesman/NN
./.
Even/RB
if/IN
B.A.T/NNP
receives/VBZ
approval/NN
for/IN
the/DT
restructuring/NN
,/,
the/DT
company/NN
will/MD
remain/VB
in/IN
play/NN
,/,
say/VBP
shareholders/NNS
and/CC
analysts/NNS
,/,
though/IN
the/DT
situation/NN
may/MD
unfold/VB
over/IN
the/DT
next/JJ
12/CD
months/NNS
,/,
rather/RB
than/IN
six/CD
./.
The/DT
new/JJ
B.A.T/NNP
will/MD
be/VB
a/DT
smaller/JJR
tobacco/NN
and/CC
financial-services/NNS
hybrid/NN
whose/WP$
price-earnings/NNS
ratio/NN
may/MD
more/RBR
closely/RB
reflect/VB
the/DT
lower-growth/JJ
tobacco/NN
business/NN
than/IN
the/DT
higher-multiple/JJ
financial-services/NNS
business/NN
,/,
these/DT
holders/NNS
believe/VBP
./.
Thus/RB
B.A.T/NNP
's/POS
restructuring/NN
may/MD
only/RB
make/VB
the/DT
company/NN
a/DT
more/RBR
manageable/JJ
target/NN
for/IN
other/JJ
corporate/JJ
predators/NNS
--/:
possibly/RB
such/JJ
acquisitive/JJ
bidders/NNS
as/IN
Hanson/NNP
PLC/NNP
./.
``/``
The/DT
last/JJ
few/JJ
days/NNS
will/MD
surely/RB
slow/VB
down/RP
the/DT
pace/NN
of/IN
events/NNS
,/,
''/''
says/VBZ
Scottish/NNP
Amicable/NNP
's/POS
Mr./NNP
Gilchrist/NNP
./.
``/``
But/CC
I/PRP
would/MD
n't/RB
write/VB
off/RP
''/''
Sir/NNP
James/NNP
or/CC
other/JJ
potential/JJ
bidders/NNS
./.
Among/IN
possible/JJ
delays/NNS
,/,
the/DT
sales/NNS
of/IN
Saks/NNP
and/CC
Marshall/NNP
Field/NNP
--/:
which/WDT
were/VBD
expected/VBN
to/TO
be/VB
on/IN
the/DT
block/NN
soon/RB
after/IN
the/DT
crucial/JJ
Christmas/NNP
season/NN
--/:
may/MD
slide/VB
into/IN
the/DT
second/JJ
quarter/NN
or/CC
second/JJ
half/NN
./.
Analysts/NNS
estimate/VBP
that/IN
sales/NNS
of/IN
the/DT
two/CD
businesses/NNS
could/MD
raise/VB
roughly/RB
$/$
2/CD
billion/CD
./.
B.A.T/NNP
is/VBZ
n't/RB
predicting/VBG
a/DT
postponement/NN
because/IN
the/DT
units/NNS
``/``
are/VBP
quality/NN
businesses/NNS
and/CC
we/PRP
are/VBP
encouraged/JJ
by/IN
the/DT
breadth/NN
of/IN
inquiries/NNS
,/,
''/''
said/VBD
Mr./NNP
Prideaux/NNP
./.
But/CC
the/DT
delay/NN
could/MD
happen/VB
if/IN
B.A.T/NNP
does/VBZ
n't/RB
get/VB
adequate/JJ
bids/NNS
,/,
he/PRP
said/VBD
./.
People/NNS
familiar/JJ
with/IN
B.A.T/NNP
say/VBP
possible/JJ
acquirers/NNS
for/IN
the/DT
units/NNS
include/VBP
managers/NNS
from/IN
both/DT
retailing/NN
chains/NNS
,/,
and/CC
General/NNP
Cinema/NNP
Corp./NNP
,/,
which/WDT
is/VBZ
interested/VBN
in/IN
bidding/NN
for/IN
Saks/NNP
./.
Other/JJ
potential/JJ
bidders/NNS
for/IN
parts/NNS
of/IN
B.A.T/NNP
's/POS
U.S./NNP
retail/NN
unit/NN
include/VBP
Dillard/NNP
Department/NNP
Stores/NNPS
Inc./NNP
,/,
May/NNP
Department/NNP
Stores/NNPS
Co./NNP
and/CC
Limited/NNP
Inc/NNP
./.
B.A.T/NNP
has/VBZ
declined/VBN
to/TO
identify/VB
the/DT
potential/JJ
bidders/NNS
./.
Though/NNP
Sir/NNP
James/NNP
has/VBZ
said/VBN
he/PRP
intends/VBZ
to/TO
mount/VB
a/DT
new/JJ
bid/NN
for/IN
B.A.T/NNP
once/IN
approval/NN
from/IN
U.S./NNP
insurance/NN
regulators/NNS
is/VBZ
received/VBN
,/,
jitters/NNS
over/IN
prospects/NNS
for/IN
junk-bond/NN
financing/NN
and/CC
U.S./NNP
leverage/NN
buy-outs/NNS
are/VBP
making/VBG
investors/NNS
more/RBR
skeptical/JJ
about/IN
Sir/NNP
James/NNP
's/POS
prospects/NNS
./.
His/PRP$
initial/JJ
offer/NN
indicated/VBD
he/PRP
needed/VBD
to/TO
raise/VB
as/RB
much/RB
as/IN
80/CD
%/NN
of/IN
the/DT
takeover/NN
financing/NN
through/IN
the/DT
debt/NN
markets/NNS
./.
Market/NN
uncertainty/NN
also/RB
clouds/VBZ
the/DT
outlook/NN
for/IN
B.A.T/NNP
's/POS
attracting/VBG
a/DT
premium/NN
price/NN
for/IN
its/PRP$
U.S./NNP
retailing/NN
properties/NNS
./.
Finally/RB
,/,
Tuesday/NNP
's/POS
California/NNP
earthquake/NN
initially/RB
knocked/VBD
3.7/CD
%/NN
off/RP
B.A.T/NNP
's/POS
share/NN
price/NN
in/IN
London/NNP
yesterday/NN
because/IN
of/IN
fears/NNS
of/IN
the/DT
potential/JJ
claims/NNS
to/TO
Los/NNP
Angeles-based/JJ
Farmers/NNPS
,/,
which/WDT
has/VBZ
a/DT
substantial/JJ
portion/NN
of/IN
its/PRP$
property/NN
and/CC
casualty/NN
exposure/NN
in/IN
California/NNP
./.
On/IN
Farmers/NNPS
,/,
Mr./NNP
Prideaux/NNP
said/VBD
it/PRP
is/VBZ
too/RB
early/JJ
to/TO
quantify/VB
the/DT
level/NN
of/IN
potential/JJ
claims/NNS
./.
He/PRP
added/VBD
B.A.T/NNP
``/``
has/VBZ
no/DT
expectation/NN
of/IN
a/DT
material/NN
impact/NN
on/IN
Farmers/NNPS
./.
''/''
Bridge/NN
and/CC
highway/NN
collapses/NNS
will/MD
disrupt/VB
truck/NN
and/CC
auto/NN
transportation/NN
in/IN
the/DT
San/NNP
Francisco/NNP
Bay/NNP
area/NN
for/IN
months/NNS
to/TO
come/VB
./.
But/CC
rail/NN
,/,
air/NN
and/CC
ocean-shipping/NN
links/NNS
to/TO
the/DT
area/NN
escaped/VBD
Tuesday/NNP
's/POS
earthquake/NN
with/IN
only/JJ
minor/JJ
damage/NN
,/,
and/CC
many/JJ
are/VBP
expected/VBN
to/TO
be/VB
operating/VBG
normally/RB
today/NN
,/,
government/NN
and/CC
corporate/JJ
transport/NN
officials/NNS
said/VBD
./.
Air/NN
traffic/NN
at/IN
San/NNP
Francisco/NNP
International/NNP
Airport/NNP
was/VBD
running/VBG
about/IN
50/CD
%/NN
of/IN
normal/JJ
yesterday/NN
afternoon/NN
,/,
but/CC
airport/NN
officals/NNS
said/VBD
they/PRP
expect/VBP
a/DT
return/NN
to/TO
full/JJ
operations/NNS
by/IN
Saturday/NNP
./.
The/DT
major/JJ
gateway/NN
to/TO
Asia/NNP
and/CC
one/CD
of/IN
the/DT
nation/NN
's/POS
10/CD
busiest/JJS
airports/NNS
was/VBD
closed/VBN
to/TO
all/DT
but/CC
emergency/NN
traffic/NN
from/IN
the/DT
time/NN
the/DT
quake/NN
hit/VBN
Tuesday/NNP
afternoon/NN
,/,
until/IN
6/CD
a.m./RB
PDT/NNP
yesterday/NN
when/WRB
controllers/NNS
returned/VBD
to/TO
the/DT
tower/NN
./.
Getting/VBG
to/TO
and/CC
from/IN
the/DT
airport/NN
in/IN
coming/VBG
weeks/NNS
may/MD
be/VB
the/DT
problem/NN
,/,
however/RB
./.
``/``
People/NNS
's/POS
ability/NN
to/TO
drive/VB
throughout/IN
the/DT
bay/NN
area/NN
is/VBZ
greatly/RB
restricted/VBN
,/,
''/''
said/VBD
a/DT
spokesman/NN
for/IN
the/DT
American/NNP
Automobile/NNP
Association/NNP
./.
Tom/NNP
Schumacher/NNP
,/,
executive/NN
vice/NN
president/NN
and/CC
general/JJ
manager/NN
of/IN
the/DT
California/NNP
Trucking/NNP
Association/NNP
in/IN
Sacremento/NNP
,/,
said/VBD
his/PRP$
organization/NN
urged/VBD
trucking/NN
firms/NNS
to/TO
halt/VB
all/DT
deliveries/NNS
into/IN
the/DT
Bay/NNP
area/NN
yesterday/NN
,/,
except/IN
for/IN
emergency-medical/JJ
supplies/NNS
./.
``/``
Some/DT
foodstuff/NN
shipments/NNS
will/MD
probably/RB
resume/VB
Thursday/NNP
,/,
''/''
he/PRP
said/VBD
./.
``/``
Right/RB
now/RB
most/JJS
of/IN
the/DT
roads/NNS
into/IN
the/DT
Bay/NNP
area/NN
are/VBP
closed/VBN
,/,
but/CC
the/DT
list/NN
of/IN
closings/NNS
changes/VBZ
about/IN
every/DT
20/CD
minutes/NNS
./.
This/DT
Wednesday/NNP
morning/NN
the/DT
San/NNP
Mateo/NNP
bridge/NN
was/VBD
open/JJ
and/CC
now/RB
we/PRP
are/VBP
informed/VBN
that/IN
it/PRP
is/VBZ
closed/JJ
,/,
''/''
Mr./NNP
Schumacher/NNP
said/VBD
./.
United/NNP
Parcel/NNP
Service/NNP
,/,
Greenwich/NNP
,/,
Conn./NNP
,/,
said/VBD
its/PRP$
operations/NNS
in/IN
the/DT
San/NNP
Francisco/NNP
area/NN
have/VBP
been/VBN
reduced/VBN
to/TO
40/CD
%/NN
of/IN
normal/JJ
./.
A/DT
UPS/NNP
spokesman/NN
said/VBD
that/IN
although/IN
none/NN
of/IN
the/DT
company/NN
's/POS
terminals/NNS
,/,
trucks/NNS
or/CC
airplanes/NNS
were/VBD
damaged/VBN
in/IN
the/DT
quake/NN
,/,
road/NN
shutdowns/NNS
and/CC
power/NN
failures/NNS
have/VBP
impeded/VBN
its/PRP$
pickup/NN
and/CC
delivery/NN
of/IN
packages/NNS
./.
The/DT
spokesman/NN
noted/VBD
four-hour/JJ
to/TO
five-hour/JJ
traffic/NN
delays/NNS
on/IN
the/DT
San/NNP
Mateo/NNP
bridge/NN
,/,
for/IN
example/NN
./.
In/IN
addition/NN
,/,
power/NN
failures/NNS
prevented/VBD
its/PRP$
package-sorting/NN
facilities/NNS
from/IN
operating/VBG
,/,
causing/VBG
delays/NNS
./.
But/CC
freight/NN
railroads/NNS
reported/VBD
that/DT
damage/NN
to/TO
their/PRP$
facilities/NNS
was/VBD
relatively/RB
minor/JJ
,/,
with/IN
Santa/NNP
Fe/NNP
Pacific/NNP
Corp./NNP
's/POS
rail/NN
unit/NN
the/DT
least/RBS
affected/JJ
by/IN
the/DT
quake/NN
./.
Santa/NNP
Fe/NNP
stopped/VBD
freight/NN
trains/NNS
Tuesday/NNP
night/NN
while/IN
its/PRP$
officials/NNS
inspected/VBD
track/NN
but/CC
resumed/VBD
service/NN
at/IN
10:45/CD
p.m./RB
when/WRB
they/PRP
found/VBD
no/DT
damage/NN
./.
Union/NNP
Pacific/NNP
Corp./NNP
's/POS
rail/NN
unit/NN
said/VBD
that/IN
except/IN
for/IN
damage/NN
to/TO
shipping/NN
containers/NNS
in/IN
its/PRP$
Oakland/NNP
yard/NN
,/,
its/PRP$
track/NN
,/,
bridges/NNS
and/CC
structures/NNS
were/VBD
unharmed/JJ
./.
That/DT
railroad/NN
is/VBZ
operating/VBG
trains/NNS
but/CC
with/IN
delays/NNS
caused/VBN
by/IN
employees/NNS
unable/JJ
to/TO
get/VB
to/TO
work/NN
./.
Southern/NNP
Pacific/NNP
Transportation/NNP
Co./NNP
,/,
the/DT
hardest/JJS
hit/NN
of/IN
the/DT
three/CD
railroads/NNS
in/IN
the/DT
Bay/NNP
area/NN
,/,
said/VBD
service/NN
on/IN
its/PRP$
north-south/JJ
coastline/NN
,/,
which/WDT
is/VBZ
used/VBN
by/IN
an/DT
Amtrak/NNP
train/NN
between/IN
Los/NNP
Angeles/NNP
and/CC
Seattle/NNP
,/,
was/VBD
suspended/VBN
temporarily/RB
because/IN
of/IN
kinked/JJ
rails/NNS
near/IN
the/DT
epicenter/NN
of/IN
the/DT
quake/NN
./.
But/CC
service/NN
on/IN
the/DT
line/NN
is/VBZ
expected/VBN
to/TO
resume/VB
by/IN
noon/NN
today/NN
./.
``/``
We/PRP
had/VBD
no/DT
serious/JJ
damage/NN
on/IN
the/DT
railroad/NN
,/,
''/''
said/VBD
a/DT
Southern/NNP
Pacific/NNP
spokesman/NN
./.
``/``
We/PRP
have/VBP
no/DT
problem/NN
to/TO
our/PRP$
freight/NN
service/NN
at/IN
all/DT
expect/IN
for/IN
the/DT
fact/NN
businesses/NNS
are/VBP
shut/VBN
down/RB
./.
''/''
Amtrak/NNP
said/VBD
it/PRP
suspended/VBD
train/NN
service/NN
into/IN
its/PRP$
Oakland/NNP
station/NN
,/,
which/WDT
sustained/VBD
``/``
heavy/JJ
structural/JJ
damage/NN
''/''
during/IN
the/DT
quake/NN
./.
The/DT
passenger/NN
railroad/NN
said/VBD
it/PRP
terminated/VBD
some/DT
runs/NNS
in/IN
Sacramento/NNP
,/,
relying/VBG
on/IN
buses/NNS
to/TO
ferry/VB
passengers/NNS
to/TO
the/DT
Bay/NNP
area/NN
./.
Amtrak/NNP
said/VBD
it/PRP
planned/VBD
to/TO
resume/VB
some/DT
train/NN
operations/NNS
to/TO
Oakland/NNP
late/JJ
yesterday/NN
./.
Rail-transit/NN
operations/NNS
suffered/VBD
little/JJ
damage/NN
,/,
according/VBG
to/TO
Albert/NNP
Engelken/NNP
,/,
deputy/NN
executive/NN
director/NN
of/IN
the/DT
American/NNP
Public/NNP
Transit/NNP
Association/NNP
in/IN
Washington/NNP
./.
The/DT
Bay/NNP
Area/NNP
Rapid/NNP
Transit/NNP
``/``
withstood/VBD
the/DT
earthquake/NN
perfectly/RB
,/,
''/''
said/VBD
Mr./NNP
Engelken/NNP
,/,
adding/VBG
that/IN
the/DT
rail/NN
system/NN
was/VBD
running/VBG
a/DT
full/JJ
fleet/NN
of/IN
45/CD
trains/NNS
during/IN
the/DT
day/NN
to/TO
provide/VB
an/DT
alternative/NN
for/IN
highway/NN
travelers/NNS
./.
``/``
The/DT
highway/NN
system/NN
is/VBZ
screwed/VBN
up/RB
''/''
by/IN
the/DT
earthquake/NN
,/,
Mr./NNP
Engelken/NNP
said/VBD
./.
``/``
The/DT
transit/NN
system/NN
is/VBZ
how/WRB
people/NNS
are/VBP
going/VBG
to/TO
be/VB
getting/VBG
around/RB
./.
''/''
He/PRP
added/VBD
that/IN
San/NNP
Francisco/NNP
's/POS
trolley/NN
cars/NNS
and/CC
trolley/NN
buses/NNS
were/VBD
also/RB
running/VBG
at/IN
full/JJ
service/NN
levels/NNS
./.
Although/IN
air-traffic/NN
delays/NNS
in/IN
San/NNP
Francisco/NNP
were/VBD
significant/JJ
yesterday/NN
,/,
they/PRP
did/VBD
n't/RB
appear/VB
to/TO
spread/VB
to/TO
other/JJ
airports/NNS
./.
The/DT
earthquake/NN
shattered/VBD
windows/NNS
at/IN
San/NNP
Francisco/NNP
International/NNP
's/POS
air-traffic/NN
control/NN
tower/NN
and/CC
rained/VBD
pieces/NNS
of/IN
the/DT
ceiling/NN
down/RP
on/IN
controllers/NNS
,/,
three/CD
of/IN
whom/WP
suffered/VBD
minor/JJ
injuries/NNS
./.
Terminals/NNS
at/IN
San/NNP
Francisco/NNP
International/NNP
also/RB
were/VBD
damaged/VBN
,/,
but/CC
the/DT
tower/NN
itself/PRP
was/VBD
intact/JJ
./.
Tuesday/NNP
night/NN
,/,
thousands/NNS
were/VBD
diverted/VBN
to/TO
other/JJ
airports/NNS
and/CC
had/VBD
to/TO
wait/VB
a/DT
day/NN
to/TO
resume/VB
travel/NN
./.
Runways/NNS
at/IN
San/NNP
Francisco/NNP
were/VBD
n't/RB
damaged/VBN
,/,
but/CC
traffic/NN
was/VBD
being/VBG
limited/VBN
yesterday/NN
to/TO
27/CD
arrivals/NNS
and/CC
27/CD
departures/NNS
an/DT
hour/NN
--/:
down/IN
from/IN
33/CD
to/TO
45/CD
an/DT
hour/NN
normally/RB
--/:
mainly/RB
because/IN
the/DT
noise/NN
level/NN
in/IN
the/DT
control/NN
tower/NN
was/VBD
overwhelming/JJ
without/IN
the/DT
windows/NNS
,/,
an/DT
FAA/NNP
spokeswoman/NN
said/VBD
./.
While/IN
the/DT
airport/NN
was/VBD
closed/VBN
,/,
flights/NNS
were/VBD
diverted/VBN
to/TO
airports/NNS
in/IN
Sacramento/NNP
and/CC
Stockton/NNP
,/,
Calif./NNP
;/:
Reno/NNP
and/CC
Las/NNP
Vegas/NNP
,/,
Nev./NNP
;/:
and/CC
Los/NNP
Angeles/NNP
./.
United/NNP
Airlines/NNPS
,/,
the/DT
largest/JJS
carrier/NN
at/IN
San/NNP
Francisco/NNP
,/,
was/VBD
operating/VBG
only/RB
50/CD
%/NN
of/IN
its/PRP$
scheduled/JJ
service/NN
in/IN
and/CC
out/IN
of/IN
the/DT
area/NN
because/IN
of/IN
damage/NN
to/TO
its/PRP$
terminal/NN
,/,
which/WDT
in/IN
turn/NN
was/VBD
causing/VBG
delays/NNS
for/IN
travelers/NNS
headed/VBD
to/TO
the/DT
Bay/NNP
area/NN
./.
A/DT
United/NNP
spokesman/NN
said/VBD
14/CD
of/IN
its/PRP$
21/CD
gates/NNS
were/VBD
unusable/JJ
,/,
mainly/RB
because/IN
of/IN
water/NN
damage/NN
caused/VBN
when/WRB
a/DT
sprinkler/NN
system/NN
was/VBD
triggered/VBN
by/IN
the/DT
tremors/NNS
./.
The/DT
United/NNP
spokesman/NN
said/VBD
none/NN
of/IN
its/PRP$
people/NNS
were/VBD
injured/VBN
at/IN
the/DT
airport/NN
;/:
in/IN
fact/NN
,/,
as/IN
the/DT
airport/NN
was/VBD
being/VBG
evacuated/VBN
Tuesday/NNP
night/NN
,/,
two/CD
babies/NNS
were/VBD
born/VBN
./.
Yesterday/NN
,/,
the/DT
United/NNP
ticket/NN
counter/NN
was/VBD
active/JJ
,/,
with/IN
people/NNS
trying/VBG
to/TO
get/VB
flights/NNS
out/RB
,/,
but/CC
the/DT
airline/NN
said/VBD
demand/NN
for/IN
seats/NNS
into/IN
the/DT
city/NN
also/RB
was/VBD
active/JJ
,/,
with/IN
people/NNS
trying/VBG
to/TO
get/VB
there/RB
to/TO
help/VB
family/NN
and/CC
friends/NNS
./.
The/DT
airports/NNS
in/IN
San/NNP
Jose/NNP
and/CC
Oakland/NNP
were/VBD
both/DT
fully/RB
operational/JJ
by/IN
noon/NN
yesterday/NN
,/,
the/DT
Federal/NNP
Aviation/NNP
Administration/NNP
said/VBD
./.
In/IN
terms/NNS
of/IN
diversions/NNS
,/,
Denver/NNP
's/POS
Stapleton/NNP
International/NNP
may/MD
have/VB
experienced/VBN
the/DT
most/RBS
far-flung/JJ
:/:
A/DT
United/NNP
flight/NN
from/IN
Japan/NNP
was/VBD
rerouted/VBN
there/RB
./.
``/``
I/PRP
think/VBP
that/DT
's/VBZ
the/DT
first/JJ
nonstop/JJ
commercial/JJ
passenger/NN
flight/NN
from/IN
Japan/NNP
to/TO
land/VB
here/RB
,/,
''/''
an/DT
airport/NN
spokesman/NN
said/VBD
./.
A/DT
Japan/NNP
Air/NNP
Lines/NNPS
spokesman/NN
said/VBD
its/PRP$
flights/NNS
into/IN
and/CC
out/IN
of/IN
San/NNP
Francisco/NNP
were/VBD
n't/RB
affected/VBN
,/,
but/CC
getting/VBG
information/NN
about/IN
its/PRP$
operations/NNS
was/VBD
difficult/JJ
./.
Its/PRP$
telecommunications/NN
headquarters/NN
in/IN
Burlingame/NNP
,/,
Calif./NNP
,/,
had/VBD
been/VBN
knocked/VBN
out/RB
since/IN
the/DT
quake/NN
./.
``/``
We/PRP
're/VBP
in/IN
the/DT
dark/JJ
,/,
''/''
he/PRP
said/VBD
./.
Whitbread/NNP
&/CC
Co./NNP
put/VBD
its/PRP$
spirits/NNS
division/NN
up/RP
for/IN
sale/NN
,/,
triggering/VBG
a/DT
scramble/NN
among/IN
global/JJ
groups/NNS
for/IN
the/DT
British/JJ
company/NN
's/POS
brands/NNS
./.
Whitbread/NNP
already/RB
has/VBZ
been/VBN
approached/VBN
by/IN
``/``
about/IN
half/PDT
a/DT
dozen/NN
''/''
companies/NNS
interested/JJ
in/IN
buying/VBG
all/DT
or/CC
part/NN
of/IN
the/DT
spirits/NNS
business/NN
,/,
a/DT
spokesman/NN
said/VBD
./.
Analysts/NNS
expect/VBP
the/DT
spirits/NNS
operations/NNS
and/CC
some/DT
California/NNP
vineyards/NNS
that/WDT
also/RB
are/VBP
being/VBG
sold/VBN
to/TO
fetch/VB
about/IN
#/#
500/CD
million/CD
$/$
788.8/CD
million/CD
Among/IN
the/DT
brands/NNS
for/IN
sale/NN
are/VBP
Beefeater/NNP
gin/NN
,/,
the/DT
No./NN
2/CD
imported/VBN
gin/NN
in/IN
the/DT
U.S./NNP
,/,
and/CC
Laphroaig/NNP
single-malt/JJ
whiskey/NN
./.
Also/RB
for/IN
sale/NN
are/VBP
Buckingham/NNP
Wile/NNP
Co./NNP
,/,
which/WDT
distributes/VBZ
Cutty/NNP
Sark/NNP
blended/JJ
whiskey/NN
in/IN
the/DT
U.S./NNP
,/,
and/CC
Whitbread/NNP
's/POS
Atlas/NNP
Peak/NNP
Vineyards/NNPS
in/IN
California/NNP
's/POS
Napa/NNP
Valley/NNP
./.
Beefeater/NNP
alone/RB
is/VBZ
worth/JJ
as/IN
much/RB
as/IN
#/#
300/CD
million/CD
,/,
analysts/NNS
said/VBD
./.
Whitbread/NNP
bought/VBD
the/DT
Beefeater/NNP
distillery/NN
two/CD
years/NNS
ago/RB
for/IN
#/#
174.5/CD
million/CD
./.
That/DT
purchase/NN
represented/VBD
an/DT
attempt/NN
by/IN
Whitbread/NNP
,/,
a/DT
venerable/JJ
British/JJ
brewer/NN
,/,
to/TO
become/VB
a/DT
major/JJ
player/NN
in/IN
the/DT
global/JJ
liquor/NN
business/NN
./.
But/CC
Whitbread/NNP
has/VBZ
been/VBN
squeezed/VBN
by/IN
giant/JJ
rivals/NNS
amid/IN
widespread/JJ
consolidation/NN
in/IN
the/DT
industry/NN
./.
Now/RB
,/,
it/PRP
wants/VBZ
to/TO
concentrate/VB
on/IN
beer/NN
and/CC
its/PRP$
newer/JJR
hotel/NN
and/CC
restaurant/NN
operations/NNS
./.
For/IN
rival/JJ
liquor/NN
companies/NNS
,/,
the/DT
Whitbread/NNP
auction/NN
is/VBZ
a/DT
rare/JJ
opportunity/NN
to/TO
acquire/VB
valuable/JJ
brands/NNS
./.
``/``
It/PRP
's/VBZ
not/RB
very/RB
often/RB
something/NN
like/IN
this/DT
comes/VBZ
up/RB
,/,
''/''
said/VBD
Ron/NNP
Littleboy/NNP
,/,
a/DT
liquor/NN
company/NN
analyst/NN
at/IN
Nomura/NNP
Research/NNP
Institute/NNP
in/IN
London/NNP
./.
``/``
The/DT
division/NN
will/MD
be/VB
sold/VBN
off/RB
quite/RB
rapidly/RB
,/,
''/''
predicted/VBD
Neill/NNP
Junor/NNP
,/,
an/DT
analyst/NN
at/IN
London/NNP
brokers/NNS
County/NNP
NatWest/NNP
WoodMac/NNP
./.
Among/IN
possible/JJ
buyers/NNS
,/,
Grand/NNP
Metropolitan/NNP
PLC/NNP
might/MD
find/VB
Beefeater/NNP
a/DT
useful/JJ
addition/NN
to/TO
its/PRP$
portfolio/NN
./.
Grand/NNP
Met/NNP
owns/VBZ
Bombay/NNP
gin/NN
,/,
the/DT
No./NN
3/CD
imported/VBN
gin/NN
in/IN
the/DT
U.S./NNP
;/:
rival/JJ
Guinness/NNP
PLC/NNP
has/VBZ
the/DT
No./NN
1/CD
imported/VBN
brand/NN
,/,
Tanqueray/NNP
./.
The/DT
Whitbread/NNP
spirits/NNS
auction/NN
``/``
is/VBZ
an/DT
extremely/RB
interesting/JJ
development/NN
.../:
and/CC
naturally/RB
we/PRP
'll/MD
be/VB
considering/VBG
it/PRP
carefully/RB
,/,
''/''
a/DT
Grand/NNP
Met/NNP
spokesman/NN
said/VBD
./.
Guinness/NNP
,/,
which/WDT
owns/VBZ
several/JJ
leading/VBG
whiskey/NN
brands/NNS
plus/CC
Gordon/NNP
's/POS
gin/NN
,/,
the/DT
world/NN
's/POS
No./NN
1/CD
gin/NN
,/,
is/VBZ
considered/VBN
less/RBR
likely/JJ
to/TO
bid/VB
for/IN
the/DT
Whitbread/NNP
spirits/NNS
./.
A/DT
Guinness/NNP
spokesman/NN
declined/VBD
to/TO
comment/VB
./.
Two/CD
other/JJ
global/JJ
liquor/NN
giants/NNS
,/,
Canada/NNP
's/POS
Seagram/NNP
Co./NNP
and/CC
Britain/NNP
's/POS
Allied-Lyons/NNP
PLC/NNP
,/,
also/RB
are/VBP
possible/JJ
buyers/NNS
./.
Seagram/NNP
's/POS
gin/NN
is/VBZ
the/DT
world/NN
's/POS
No./NN
2/CD
gin/NN
brand/NN
,/,
but/CC
the/DT
company/NN
does/VBZ
n't/RB
own/VB
any/DT
of/IN
the/DT
major/JJ
gin/NN
brands/NNS
imported/VBN
in/IN
the/DT
U.S/NNP
./.
Allied-Lyons/NNP
,/,
while/IN
powerful/JJ
in/IN
whiskey/NN
,/,
does/VBZ
n't/RB
own/VB
any/DT
major/JJ
white-spirit/NN
brands/NNS
./.
``/``
We/PRP
will/MD
certainly/RB
have/VB
to/TO
take/VB
a/DT
look/NN
at/IN
''/''
the/DT
Whitbread/NNP
spirits/NNS
business/NN
,/,
an/DT
Allied-Lyons/NNP
spokesman/NN
said/VBD
./.
``/``
We/PRP
would/MD
certainly/RB
like/VB
to/TO
have/VB
a/DT
major/JJ
white-spirits/JJ
brand/NN
in/IN
our/PRP$
portfolio/NN
./.
''/''
A/DT
Seagram/NNP
spokesman/NN
in/IN
New/NNP
York/NNP
would/MD
n't/RB
comment/VB
./.
Smaller/JJR
liquor/NN
companies/NNS
,/,
such/JJ
as/IN
Brown-Forman/NNP
Corp./NNP
and/CC
American/NNP
Brands/NNPS
Inc./NNP
of/IN
the/DT
U.S./NNP
,/,
also/RB
are/VBP
likely/JJ
to/TO
be/VB
interested/JJ
./.
Such/JJ
companies/NNS
``/``
are/VBP
increasingly/RB
being/VBG
left/RB
behind/RB
''/''
in/IN
the/DT
global/JJ
liquor/NN
business/NN
,/,
says/VBZ
Nomura/NN
's/POS
Mr./NNP
Littleboy/NNP
./.
In/IN
New/NNP
York/NNP
,/,
a/DT
spokesman/NN
for/IN
American/NNP
Brands/NNPS
would/MD
n't/RB
comment/VB
./.
Brown-Forman/NNP
,/,
a/DT
Louisville/NNP
,/,
Ky./NNP
distiller/NN
,/,
also/RB
declined/VBD
to/TO
comment/VB
./.
Whitbread/NNP
's/POS
wine/NN
,/,
spirits/NNS
and/CC
soft-drink/NN
operations/NNS
had/VBD
trading/NN
profit/NN
of/IN
#/#
35.4/CD
million/CD
on/IN
sales/NNS
of/IN
#/#
315.5/CD
million/CD
in/IN
the/DT
year/NN
ended/VBN
Feb./NNP
25/CD
./.
The/DT
company/NN
,/,
which/WDT
is/VBZ
retaining/VBG
most/JJS
of/IN
its/PRP$
wine/NN
and/CC
all/DT
of/IN
its/PRP$
soft-drink/NN
interests/NNS
,/,
did/VBD
n't/RB
break/NN
out/RP
results/NNS
for/IN
the/DT
businesses/NNS
it/PRP
plans/VBZ
to/TO
sell/VB
./.
But/CC
analysts/NNS
estimate/VBP
their/PRP$
trading/NN
profit/NN
at/IN
#/#
30/CD
million/CD
./.
Whitbread/NNP
had/VBD
total/JJ
pretax/JJ
profit/NN
in/IN
the/DT
year/NN
ended/VBN
Feb./NNP
25/CD
of/IN
#/#
223.2/CD
million/CD
,/,
on/IN
sales/NNS
of/IN
#/#
2.26/CD
billion/CD
./.
Whitbread/NNP
's/POS
spirits/NNS
auction/NN
occurs/VBZ
amid/IN
a/DT
parallel/JJ
shakeup/NN
in/IN
the/DT
British/JJ
beer/NN
industry/NN
./.
Earlier/RB
this/DT
year/NN
,/,
the/DT
government/NN
announced/VBD
plans/NNS
to/TO
foster/VB
increased/VBN
competition/NN
in/IN
the/DT
industry/NN
./.
British/JJ
brewers/NNS
currently/RB
own/VBP
thousands/NNS
of/IN
pubs/NNS
,/,
which/WDT
in/RB
turn/RB
sell/VBP
only/RB
the/DT
breweries/NNS
'/POS
beer/NN
and/CC
soft/JJ
drinks/NNS
./.
Under/IN
new/JJ
rules/NNS
,/,
many/JJ
of/IN
the/DT
country/NN
's/POS
pubs/NNS
would/MD
become/VB
``/``
free/JJ
houses/NNS
,/,
''/''
selling/VBG
beers/NNS
of/IN
their/PRP$
choice/NN
./.
Whitbread/NNP
now/RB
intends/VBZ
to/TO
bolster/VB
its/PRP$
brewing/NN
interests/NNS
,/,
in/IN
an/DT
effort/NN
to/TO
grab/VB
a/DT
share/NN
of/IN
sales/NNS
to/TO
free/JJ
houses/NNS
./.
The/DT
company/NN
,/,
which/WDT
last/JJ
month/NN
paid/VBD
#/#
50.7/CD
million/CD
for/IN
regional/JJ
British/JJ
brewer/NN
Boddington/NNP
Group/NNP
PLC/NNP
,/,
has/VBZ
about/IN
13/CD
%/NN
of/IN
the/DT
British/JJ
beer/NN
market/NN
./.
Whitbread/NNP
also/RB
owns/VBZ
the/DT
license/NN
to/TO
brew/VB
and/CC
distribute/VB
Heineken/NNP
and/CC
Stella/NNP
Artois/NNP
beers/NNS
in/IN
Britain/NNP
./.
In/IN
addition/NN
,/,
Whitbread/NNP
intends/VBZ
to/TO
focus/VB
on/IN
its/PRP$
newer/JJR
hotel/NN
,/,
liquor/NN
store/NN
and/CC
restaurant/NN
businesses/NNS
in/IN
Europe/NNP
and/CC
North/NNP
America/NNP
./.
In/IN
Britain/NNP
,/,
those/DT
interests/NNS
include/VBP
the/DT
Beefeater/NNP
steakhouse/NN
chain/NN
and/CC
joint/JJ
ownership/NN
with/IN
PepsiCo/NNP
Inc./NNP
of/IN
the/DT
country/NN
's/POS
Pizza/NNP
Hut/NNP
chain/NN
./.
In/IN
Canada/NNP
and/CC
the/DT
U.S./NNP
,/,
Whitbread/NNP
owns/VBZ
The/DT
Keg/NNP
chain/NN
of/IN
steak/NN
and/CC
seafood/NN
restaurants/NNS
./.
Focusing/VBG
on/IN
beer/NN
,/,
restaurants/NNS
and/CC
hotels/NNS
means/VBZ
``/``
we/PRP
can/MD
concentrate/VB
our/PRP$
skills/NNS
and/CC
resources/NNS
more/RBR
effectively/RB
,/,
''/''
Peter/NNP
Jarvis/NNP
,/,
Whitbread/NNP
's/POS
managing/NN
director/NN
,/,
said/VBD
in/IN
a/DT
statement/NN
./.
The/DT
spirits/NNS
business/NN
``/``
would/MD
require/VB
substantial/JJ
additional/JJ
investment/NN
to/TO
enable/VB
it/PRP
to/TO
compete/VB
effectively/RB
in/IN
the/DT
first/JJ
division/NN
of/IN
global/JJ
players/NNS
./.
''/''
Whitbread/NNP
also/RB
announced/VBD
that/IN
Mr./NNP
Jarvis/NNP
,/,
who/WP
is/VBZ
48/CD
,/,
will/MD
become/VB
the/DT
company/NN
's/POS
chief/JJ
executive/NN
March/NNP
1/CD
./.
At/IN
that/DT
time/NN
Sam/NNP
Whitbread/NNP
,/,
the/DT
company/NN
's/POS
chairman/NN
and/CC
a/DT
descendant/NN
of/IN
its/PRP$
18th-century/JJ
founder/NN
,/,
will/MD
retire/VB
from/IN
executive/NN
duties/NNS
./.
He/PRP
will/MD
retain/VB
the/DT
honorary/JJ
title/NN
of/IN
non-executive/JJ
chairman/NN
./.
The/DT
Treasury/NNP
plans/NNS
to/TO
raise/VB
$/$
700/CD
million/CD
in/IN
new/JJ
cash/NN
with/IN
the/DT
sale/NN
Tuesday/NNP
of/IN
about/IN
$/$
10/CD
billion/CD
in/IN
two-year/JJ
notes/NNS
to/TO
redeem/VB
$/$
9.29/CD
billion/CD
in/IN
maturing/VBG
notes/NNS
./.
The/DT
offering/NN
will/MD
be/VB
dated/VBN
Oct./NNP
31/CD
and/CC
mature/VB
Oct./NNP
31/CD
,/,
Tenders/NNS
for/IN
the/DT
notes/NNS
,/,
available/JJ
in/IN
minimum/JJ
$/$
5,000/CD
denominations/NNS
,/,
must/MD
be/VB
received/VBN
by/IN
1/CD
p.m./RB
EDT/NNP
Tuesday/NNP
at/IN
the/DT
Treasury/NNP
or/CC
at/IN
Federal/NNP
Reserve/NNP
banks/NNS
or/CC
branches/NNS
./.
NEWHALL/NNP
LAND/NNP
&/CC
FARMING/NNP
Co./NNP
,/,
Valencia/NNP
,/,
Calif./NNP
,/,
announced/VBD
a/DT
2-for-1/JJ
split/NN
in/IN
the/DT
real/JJ
estate/NN
limited/JJ
partnership/NN
's/POS
units/NNS
and/CC
increased/VBD
its/PRP$
regular/JJ
quarterly/JJ
cash/NN
distribution/NN
33/CD
%/NN
,/,
to/TO
40/CD
cents/NNS
a/DT
unit/NN
./.
The/DT
real/JJ
estate/NN
limited/JJ
partnership/NN
also/RB
said/VBD
it/PRP
will/MD
pay/VB
a/DT
special/JJ
year-end/JJ
cash/NN
distribution/NN
of/IN
10/CD
cents/NNS
a/DT
unit/NN
./.
Both/DT
distributions/NNS
are/VBP
payable/JJ
Dec./NNP
4/CD
to/TO
limited/JJ
partners/NNS
of/IN
record/NN
Nov./NNP
3/CD
./.
Mellon/NNP
Bank/NNP
Corp./NNP
said/VBD
directors/NNS
authorized/VBD
the/DT
buy-back/NN
of/IN
as/RB
many/JJ
as/IN
250,000/CD
common/JJ
shares/NNS
./.
The/DT
bank/NN
holding/VBG
company/NN
said/VBD
stock/NN
repurchased/VBN
will/MD
be/VB
used/VBN
to/TO
meet/VB
requirements/NNS
for/IN
the/DT
company/NN
's/POS
benefit/NN
plans/NNS
./.
Mellon/NNP
has/VBZ
36.6/CD
million/CD
shares/NNS
outstanding/JJ
./.
Champion/NNP
International/NNP
Corp./NNP
's/POS
third-quarter/NN
profit/NN
dropped/VBD
17/CD
%/NN
,/,
reflecting/VBG
price/NN
declines/NNS
for/IN
certain/JJ
paper/NN
products/NNS
,/,
operating/VBG
problems/NNS
at/IN
certain/JJ
mills/NNS
,/,
and/CC
other/JJ
factors/NNS
./.
The/DT
paper/NN
producer/NN
reported/VBD
that/DT
net/JJ
income/NN
fell/VBD
to/TO
$/$
102.1/CD
million/CD
,/,
or/CC
$/$
1.09/CD
a/DT
share/NN
,/,
from/IN
$/$
122.4/CD
million/CD
,/,
or/CC
$/$
1.29/CD
a/DT
share/NN
,/,
in/IN
the/DT
year-earlier/JJ
period/NN
./.
Sales/NNS
rose/VBD
2.6/CD
%/NN
to/TO
$/$
1.32/CD
billion/CD
from/IN
$/$
1.29/CD
billion/CD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Champion/NNP
's/POS
shares/NNS
rose/VBD
25/CD
cents/NNS
to/TO
$/$
32.125/CD
./.
Digital/NNP
Equipment/NNP
Corp./NNP
is/VBZ
planning/VBG
a/DT
big/JJ
coming-out/JJ
party/NN
on/IN
Tuesday/NNP
for/IN
its/PRP$
first/JJ
line/NN
of/IN
mainframe/NN
computers/NNS
./.
But/CC
an/DT
uninvited/JJ
guest/NN
is/VBZ
expected/VBN
to/TO
try/VB
to/TO
crash/VB
the/DT
party/NN
./.
On/IN
the/DT
morning/NN
of/IN
the/DT
long-planned/JJ
announcement/NN
,/,
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
is/VBZ
to/TO
introduce/VB
its/PRP$
own/JJ
new/JJ
mainframe/NN
./.
``/``
Their/PRP$
attitude/NN
is/VBZ
,/,
`/``
You/PRP
want/VBP
to/TO
talk/VB
mainframes/NNS
,/,
we/PRP
'll/MD
talk/VB
mainframes/NNS
,/,
'/''
''/''
says/VBZ
one/CD
computer/NN
industry/NN
executive/NN
./.
``/``
They/PRP
're/VBP
deliberately/RB
trying/VBG
to/TO
steal/VB
our/PRP$
thunder/NN
,/,
''/''
a/DT
Digital/NNP
executive/NN
complains/VBZ
./.
``/``
Maybe/RB
we/PRP
should/MD
take/VB
it/PRP
as/IN
a/DT
compliment/NN
./.
''/''
Digital/NNP
's/POS
target/NN
is/VBZ
the/DT
$/$
40/CD
billion/CD
market/NN
for/IN
mainframe/NN
computers/NNS
,/,
the/DT
closet-sized/JJ
number-crunchers/NNS
that/IN
nearly/RB
every/DT
big/JJ
company/NN
needs/VBZ
to/TO
run/VB
its/PRP$
business/NN
./.
IBM/NNP
,/,
based/VBN
in/IN
Armonk/NNP
,/,
N.Y./NNP
,/,
has/VBZ
dominated/VBN
the/DT
market/NN
for/IN
decades/NNS
./.
That/IN
does/VBZ
n't/RB
scare/VB
Digital/NNP
,/,
which/WDT
has/VBZ
grown/VBN
to/TO
be/VB
the/DT
world/NN
's/POS
second-largest/JJ
computer/NN
maker/NN
by/IN
poaching/VBG
customers/NNS
of/IN
IBM/NNP
's/POS
mid-range/JJ
machines/NNS
./.
Digital/NNP
,/,
based/VBN
in/IN
Maynard/NNP
,/,
Mass./NNP
,/,
hopes/VBZ
to/TO
stage/VB
a/DT
repeat/NN
performance/NN
in/IN
mainframes/NNS
,/,
and/CC
it/PRP
has/VBZ
spent/VBN
almost/RB
$/$
1/CD
billion/CD
developing/VBG
the/DT
new/JJ
technology/NN
./.
A/DT
spoiler/NN
,/,
nimble/JJ
Tandem/NNP
Computers/NNPS
Inc./NNP
in/IN
Cupertino/NNP
,/,
Calif./NNP
,/,
jumped/VBD
into/IN
the/DT
fray/NN
earlier/RB
this/DT
week/NN
with/IN
an/DT
aggressively/RB
priced/VBN
entry/NN
./.
IBM/NNP
appears/VBZ
more/RBR
worried/JJ
about/IN
Digital/NNP
,/,
which/WDT
has/VBZ
a/DT
broad/JJ
base/NN
of/IN
customers/NNS
waiting/VBG
for/IN
the/DT
new/JJ
line/NN
,/,
dubbed/VBD
the/DT
VAX/NNP
9000/CD
./.
``/``
It/PRP
's/VBZ
going/VBG
to/TO
be/VB
nuclear/JJ
war/NN
,/,
''/''
says/VBZ
Thomas/NNP
Willmott/NNP
,/,
a/DT
consultant/NN
with/IN
Aberdeen/NNP
Group/NNP
Inc/NNP
./.
The/DT
surge/NN
in/IN
competition/NN
is/VBZ
expected/VBN
to/TO
stir/VB
new/JJ
life/NN
into/IN
the/DT
huge/JJ
mainframe/NN
market/NN
,/,
where/WRB
growth/NN
has/VBZ
slowed/VBN
to/TO
single/JJ
digits/NNS
in/IN
recent/JJ
years/NNS
./.
IBM/NNP
's/POS
traditional/JJ
mainframe/NN
rivals/NNS
,/,
including/VBG
Unisys/NNP
Corp./NNP
,/,
Control/NNP
Data/NNP
Corp./NNP
and/CC
NCR/NNP
Corp./NNP
,/,
have/VBP
struggled/VBN
recently/RB
./.
Digital/NNP
is/VBZ
promising/VBG
a/DT
new/JJ
approach/NN
./.
Robert/NNP
M./NNP
Glorioso/NNP
,/,
Digital/NNP
's/POS
vice/NN
president/NN
for/IN
high/JJ
performance/NN
systems/NNS
,/,
says/VBZ
Digital/NNP
's/POS
mainframe/NN
is/VBZ
designed/VBN
not/RB
as/IN
a/DT
central/JJ
computer/NN
around/IN
which/WDT
everything/NN
revolves/VBZ
,/,
but/CC
as/IN
part/NN
of/IN
a/DT
decentralized/JJ
network/NN
weaving/VBG
together/RB
hundreds/NNS
of/IN
workstations/NNS
,/,
personal/JJ
computers/NNS
,/,
printers/NNS
and/CC
other/JJ
devices/NNS
./.
And/CC
unlike/IN
IBM/NNP
's/POS
water-cooled/JJ
mainframes/NNS
,/,
it/PRP
does/VBZ
n't/RB
need/VB
any/DT
plumbing/NN
./.
The/DT
challengers/NNS
will/MD
have/VB
a/DT
big/JJ
price/NN
advantage/NN
./.
Digital/NNP
is/VBZ
expected/VBN
to/TO
tag/VB
its/PRP$
new/JJ
line/NN
from/IN
about/IN
$/$
1.24/CD
million/CD
to/TO
$/$
4.4/CD
million/CD
and/CC
up/RB
,/,
depending/VBG
on/IN
configuration/NN
./.
That/DT
's/VBZ
about/IN
half/NN
the/DT
price/NN
of/IN
comparably/RB
equipped/VBN
IBM/NNP
mainframes/NNS
./.
Tandem/NNP
's/POS
pricing/NN
is/VBZ
just/RB
as/RB
aggressive/JJ
./.
The/DT
heightened/JJ
competition/NN
will/MD
hit/VB
IBM/NNP
at/IN
a/DT
difficult/JJ
time/NN
./.
The/DT
computer/NN
giant/NN
's/POS
current/JJ
mainframe/NN
line/NN
,/,
which/WDT
has/VBZ
sold/VBN
well/RB
and/CC
has/VBZ
huge/JJ
profit/NN
margins/NNS
,/,
is/VBZ
starting/VBG
to/TO
show/VB
its/PRP$
age/NN
./.
The/DT
new/JJ
3090s/NNS
due/JJ
next/JJ
week/NN
will/MD
boost/VB
performance/NN
by/IN
only/RB
about/IN
8/CD
%/NN
to/TO
10/CD
%/NN
./.
And/CC
IBM/NNP
is/VBZ
n't/RB
expected/VBN
to/TO
deliver/VB
a/DT
new/JJ
generation/NN
of/IN
mainframes/NNS
until/IN
1991/CD
./.
Still/RB
,/,
no/DT
one/NN
expects/VBZ
IBM/NNP
's/POS
rivals/NNS
to/TO
deliver/VB
a/DT
knockout/NN
./.
IBM/NNP
has/VBZ
a/DT
near-monopoly/NN
on/IN
mainframes/NNS
,/,
with/IN
an/DT
estimated/VBN
70/CD
%/NN
share/NN
of/IN
the/DT
market/NN
./.
IBM/NNP
is/VBZ
five/CD
times/NNS
the/DT
size/NN
of/IN
Digital/NNP
--/:
and/CC
40/CD
times/NNS
the/DT
size/NN
of/IN
Tandem/NNP
--/:
and/CC
wields/VBZ
enormous/JJ
market/NN
power/NN
./.
It/PRP
counts/VBZ
among/IN
its/PRP$
customers/NNS
a/DT
majority/NN
of/IN
the/DT
world/NN
's/POS
largest/JJS
corporations/NNS
,/,
which/WDT
entrust/VBP
their/PRP$
most/RBS
critical/JJ
business/NN
information/NN
to/TO
IBM/NNP
computers/NNS
./.
``/``
We/PRP
're/VBP
not/RB
going/VBG
to/TO
walk/VB
in/RB
and/CC
replace/VB
a/DT
company/NN
's/POS
corporate/JJ
accounting/NN
system/NN
if/IN
it/PRP
's/VBZ
already/RB
running/VBG
on/IN
an/DT
IBM/NNP
mainframe/NN
,/,
''/''
concedes/VBZ
Kenneth/NNP
H./NNP
Olsen/NNP
,/,
Digital/NNP
's/POS
president/NN
./.
He/PRP
says/VBZ
Digital/NNP
will/MD
target/VB
faster-growing/JJR
market/NN
segments/NNS
such/JJ
as/IN
on-line/JJ
transaction/NN
processing/NN
,/,
which/WDT
includes/VBZ
retail-sales/NNS
tracking/NN
,/,
airline/NN
reservations/NNS
and/CC
bank-teller/NN
networks/NNS
./.
Tandem/NNP
,/,
which/WDT
already/RB
specializes/VBZ
in/IN
on-line/JJ
transaction/NN
processing/NN
,/,
is/VBZ
a/DT
potent/JJ
competitor/NN
in/IN
that/DT
market/NN
./.
A/DT
key/NN
marketing/NN
target/NN
for/IN
Digital/NNP
will/MD
be/VB
the/DT
large/JJ
number/NN
of/IN
big/JJ
customers/NNS
who/WP
already/RB
own/VBP
both/DT
Digital/NNP
and/CC
IBM/NNP
systems/NNS
./.
One/CD
such/JJ
company/NN
is/VBZ
Bankers/NNPS
Trust/NNP
Co/NNP
./.
Stanley/NNP
Rose/NNP
,/,
a/DT
vice/NN
president/NN
,/,
technological/JJ
and/CC
strategic/JJ
planning/NN
at/IN
Bankers/NNPS
Trust/NNP
,/,
says/VBZ
that/IN
despite/IN
Digital/NNP
's/POS
low/JJ
prices/NNS
,/,
``/``
we/PRP
are/VBP
n't/RB
about/IN
to/TO
unplug/VB
our/PRP$
IBM/NNP
mainframes/NNS
for/IN
a/DT
DEC/NNP
machine/NN
./.
The/DT
software/NN
conversion/NN
costs/NNS
would/MD
dwarf/VB
any/DT
savings/NNS
./.
''/''
But/CC
Mr./NNP
Rose/NNP
is/VBZ
still/RB
looking/VBG
seriously/RB
at/IN
the/DT
9000/CD
./.
Bankers/NNPS
Trust/NNP
uses/VBZ
Digital/NNP
's/POS
VAX/NNP
to/TO
run/VB
its/PRP$
huge/JJ
money-transfer/NN
and/CC
capital/NN
markets/NNS
accounts/NNS
,/,
juggling/VBG
hundreds/NNS
of/IN
billions/NNS
of/IN
dollars/NNS
each/DT
day/NN
,/,
he/PRP
says/VBZ
./.
As/IN
that/DT
system/NN
grows/VBZ
,/,
larger/JJR
computers/NNS
may/MD
be/VB
needed/VBN
./.
``/``
In/IN
the/DT
past/NN
,/,
customers/NNS
had/VBD
to/TO
go/VB
to/TO
IBM/NNP
when/WRB
they/PRP
outgrew/VBD
the/DT
VAX/NNP
./.
Now/RB
they/PRP
do/VBP
n't/RB
have/VB
to/TO
,/,
''/''
he/PRP
says/VBZ
./.
``/``
That/DT
's/VBZ
going/VBG
to/TO
cost/VB
IBM/NNP
revenue/NN
./.
''/''
Analysts/NNS
say/VBP
Digital/NNP
can/MD
expect/VB
this/DT
pent-up/JJ
demand/NN
for/IN
the/DT
new/JJ
VAX/NNP
to/TO
fuel/VB
strong/JJ
sales/NNS
next/IN
year/NN
./.
Barry/NNP
F./NNP
Willman/NNP
,/,
an/DT
analyst/NN
at/IN
Sanford/NNP
C./NNP
Bernstein/NNP
&/CC
Co./NNP
,/,
estimates/VBZ
the/DT
9000/CD
could/MD
boost/VB
sales/NNS
by/IN
more/JJR
than/IN
$/$
1/CD
billion/CD
in/IN
the/DT
fiscal/JJ
year/NN
beginning/VBG
in/IN
July/NNP
./.
He/PRP
bases/VBZ
the/DT
estimate/NN
on/IN
a/DT
survey/NN
of/IN
hundreds/NNS
of/IN
Digital/NNP
's/POS
largest/JJS
customers/NNS
./.
Although/IN
Digital/NNP
will/MD
announce/VB
a/DT
full/JJ
family/NN
of/IN
mainframes/NNS
next/IN
week/NN
,/,
it/PRP
is/VBZ
n't/RB
expected/VBN
to/TO
begin/VB
shipping/VBG
in/IN
volume/NN
until/IN
next/JJ
year/NN
./.
The/DT
first/JJ
model/NN
available/JJ
will/MD
be/VB
the/DT
210/CD
,/,
which/WDT
is/VBZ
likely/JJ
to/TO
appeal/VB
to/TO
many/JJ
technical/JJ
and/CC
scientific/JJ
buyers/NNS
interested/VBN
in/IN
the/DT
optional/JJ
super-charger/NN
,/,
or/CC
vector/NN
processor/NN
,/,
says/VBZ
Terry/NNP
Shannon/NNP
of/IN
International/NNP
Data/NNP
Corp./NNP
,/,
a/DT
market/NN
research/NN
concern/NN
./.
Four/CD
more/JJR
models/NNS
,/,
aimed/VBD
squarely/RB
at/IN
IBM/NNP
's/POS
commercial/JJ
customers/NNS
,/,
are/VBP
expected/VBN
to/TO
begin/VB
shipping/VBG
in/IN
late/JJ
June/NNP
./.
Most/JJS
analysts/NNS
do/VBP
n't/RB
expect/VB
the/DT
new/JJ
mainframes/NNS
to/TO
begin/VB
contributing/VBG
significantly/RB
to/TO
revenue/NN
before/IN
the/DT
fiscal/JJ
first/JJ
quarter/NN
,/,
which/WDT
begins/VBZ
next/JJ
July/NNP
1/CD
./.
Digital/NNP
's/POS
new/JJ
line/NN
has/VBZ
been/VBN
a/DT
long/JJ
time/NN
coming/VBG
./.
The/DT
company/NN
has/VBZ
long/RB
struggled/VBN
to/TO
deliver/VB
a/DT
strong/JJ
mainframe-class/JJ
product/NN
,/,
and/CC
made/VBD
a/DT
costly/JJ
decision/NN
in/IN
1988/CD
to/TO
halt/VB
development/NN
of/IN
an/DT
interim/JJ
product/NN
meant/VBN
to/TO
stem/VB
the/DT
revenue/NN
losses/NNS
at/IN
the/DT
high/JJ
end/NN
./.
Digital/NNP
's/POS
failure/NN
to/TO
deliver/VB
a/DT
true/JJ
mainframe-class/JJ
machine/NN
before/IN
now/RB
may/MD
have/VB
cost/VBN
the/DT
company/NN
as/RB
much/RB
as/IN
$/$
1/CD
billion/CD
in/IN
revenue/NN
in/IN
fiscal/JJ
1989/CD
,/,
Mr./NNP
Willman/NNP
says/VBZ
./.
IBM/NNP
will/MD
face/VB
still/RB
more/JJR
competition/NN
in/IN
coming/VBG
months/NNS
./.
Amdahl/NNP
Corp./NNP
,/,
backed/VBN
by/IN
Japan/NNP
's/POS
Fujitsu/NNP
Ltd./NNP
,/,
has/VBZ
a/DT
growing/VBG
share/NN
of/IN
the/DT
market/NN
with/IN
its/PRP$
low-priced/JJ
,/,
IBM-compatible/JJ
machines/NNS
./.
And/CC
National/NNP
Advanced/NNP
Systems/NNPS
,/,
a/DT
joint/JJ
venture/NN
of/IN
Japan/NNP
's/POS
Hitachi/NNP
Ltd./NNP
and/CC
General/NNP
Motors/NNPS
Corp./NNP
's/POS
Electronic/NNP
Data/NNPS
Systems/NNP
,/,
is/VBZ
expected/VBN
to/TO
unveil/VB
a/DT
line/NN
of/IN
powerful/JJ
IBM-compatible/JJ
mainframes/NNS
later/RB
this/DT
year/NN
./.
NOTE/VB
:/:
NAS/NNP
is/VBZ
National/NNP
Advanced/NNP
Systems/NNPS
,/,
CDC/NNP
--/:
Control/NNP
Data/NNPS
Corp./NNP
,/,
Bull/NNP
NH/NNP
Information/NNP
Systems/NNPS
Inc/NNP
./.
Source/NN
:/:
International/NNP
Data/NNP
Corp/NNP
./.
Compiled/VBN
by/IN
Publishers/NNPS
Weekly/NNP
from/IN
data/NNS
from/IN
large-city/JJ
bookstores/NNS
,/,
bookstore/NN
chains/NNS
and/CC
local/JJ
bestseller/NN
lists/NNS
across/IN
the/DT
U.S/NNP
./.
Copyright/NN
1989/CD
by/IN
Reed/NNP
Publishing/NNP
USA/NNP
./.
The/DT
frenetic/JJ
stock/NN
and/CC
bond/NN
markets/NNS
cooled/VBD
off/RB
,/,
but/CC
the/DT
dollar/NN
slumped/VBD
./.
Stocks/NNS
rose/VBD
slightly/RB
as/IN
trading/NN
activity/NN
slowed/VBD
from/IN
the/DT
frenzied/JJ
pace/NN
earlier/RB
this/DT
week/NN
./.
Prices/NNS
of/IN
long-term/JJ
Treasury/NNP
bonds/NNS
hovered/VBD
in/IN
a/DT
narrow/JJ
band/NN
most/JJS
of/IN
the/DT
day/NN
,/,
finishing/VBG
little/RB
changed/JJ
despite/IN
the/DT
dollar/NN
's/POS
weakness/NN
and/CC
fears/NNS
about/IN
a/DT
wave/NN
of/IN
government/NN
borrowing/NN
coming/VBG
soon/RB
./.
Helped/VBN
by/IN
futures-related/JJ
program/NN
buying/NN
,/,
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
gained/VBD
4.92/CD
points/NNS
to/TO
close/VB
at/IN
2643.65/CD
./.
But/CC
the/DT
Dow/NNP
Jones/NNP
Transportation/NNP
Average/NNP
fell/VBD
for/IN
the/DT
seventh-consecutive/JJ
session/NN
as/IN
more/JJR
investors/NNS
dumped/VBD
UAL/NNP
shares/NNS
./.
Bond/NN
prices/NNS
rallied/VBD
early/JJ
yesterday/NN
morning/NN
as/IN
traders/NNS
scrambled/VBD
to/TO
buy/VB
Treasury/NNP
issues/NNS
on/IN
fears/NNS
that/IN
the/DT
Northern/JJ
California/NNP
earthquake/NN
might/MD
lead/VB
to/TO
a/DT
stock-market/NN
debacle/NN
./.
But/CC
when/WRB
stocks/NNS
held/VBD
steady/RB
,/,
Treasury/NNP
bonds/NNS
later/RB
retreated/VBD
./.
Speculation/NN
that/IN
the/DT
Federal/NNP
Reserve/NNP
will/MD
lower/VB
interest/NN
rates/NNS
in/IN
coming/VBG
weeks/NNS
helped/VBD
push/VB
the/DT
dollar/NN
down/RB
while/NN
boosting/VBG
stocks/NNS
,/,
traders/NNS
said/VBD
./.
But/CC
many/JJ
investors/NNS
remain/VBP
wary/JJ
about/IN
stocks/NNS
,/,
partly/RB
because/IN
they/PRP
expect/VBP
continued/VBN
turbulence/NN
in/IN
the/DT
junk-bond/NN
market/NN
that/WDT
would/MD
make/VB
it/PRP
more/RBR
difficult/JJ
to/TO
finance/VB
corporate/JJ
takeovers/NNS
./.
``/``
I/PRP
'm/VBP
surprised/VBN
we/PRP
did/VBD
n't/RB
see/VB
more/JJR
volatility/NN
''/''
in/IN
stocks/NNS
,/,
said/VBD
Raymond/NNP
F./NNP
DeVoe/NNP
Jr./NNP
,/,
market/NN
strategist/NN
at/IN
Legg/NNP
Mason/NNP
Wood/NNP
Walker/NNP
./.
``/``
I/PRP
think/VBP
the/DT
problems/NNS
in/IN
the/DT
junk-bond/NN
area/NN
are/VBP
just/RB
beginning/VBG
,/,
and/CC
this/DT
will/MD
be/VB
very/RB
unsettling/JJ
for/IN
companies/NNS
that/WDT
have/VBP
issued/VBN
junk/NN
bonds/NNS
./.
In/IN
a/DT
bull/NN
market/NN
,/,
credit/NN
does/VBZ
not/RB
matter/NN
,/,
''/''
Mr./NNP
DeVoe/NNP
added/VBD
./.
``/``
But/CC
when/WRB
it/PRP
does/VBZ
matter/NN
,/,
then/RB
it/PRP
's/VBZ
the/DT
only/JJ
thing/NN
that/IN
matters/NNS
./.
''/''
However/RB
,/,
many/JJ
institutional/JJ
investors/NNS
are/VBP
reacting/VBG
to/TO
the/DT
stock/NN
market/NN
's/POS
plunge/NN
as/IN
``/``
a/DT
great/JJ
buying/NN
opportunity/NN
,/,
''/''
said/VBD
Charles/NNP
I./NN
Clough/NNP
,/,
chief/JJ
investment/NN
strategist/NN
at/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNPS
./.
``/``
Things/NNS
are/VBP
beginning/VBG
to/TO
settle/VB
down/RB
./.
The/DT
markets/NNS
are/VBP
returning/VBG
to/TO
normalcy/NN
./.
''/''
Oil/NN
prices/NNS
initially/RB
rose/VBD
on/IN
fears/NNS
that/IN
the/DT
massive/JJ
earthquake/NN
in/IN
Northern/JJ
California/NNP
would/MD
disrupt/VB
production/NN
./.
But/CC
prices/NNS
later/RB
reversed/VBD
course/NN
,/,
finishing/VBG
slightly/RB
lower/RBR
,/,
as/IN
investors/NNS
concluded/VBD
that/IN
any/DT
cuts/NNS
would/MD
n't/RB
be/VB
large/JJ
and/CC
that/IN
foreign/JJ
oil/NN
producers/NNS
would/MD
quickly/RB
pick/VB
up/RP
the/DT
slack/NN
./.
In/IN
major/JJ
market/NN
activity/NN
:/:
Stock/NNP
prices/NNS
rose/VBD
./.
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
volume/NN
shrank/VBD
to/TO
166.9/CD
million/CD
shares/NNS
from/IN
224.1/CD
million/CD
Tuesday/NNP
./.
Advancers/NNS
on/IN
the/DT
Big/NNP
Board/NNP
outpaced/VBD
decliners/NNS
by/IN
822/CD
to/TO
668/CD
./.
Bond/NN
prices/NNS
were/VBD
little/RB
changed/JJ
in/IN
sluggish/JJ
activity/NN
./.
The/DT
yield/NN
on/IN
the/DT
Treasury/NNP
's/POS
30-year/JJ
issue/NN
fell/VBD
slightly/RB
to/TO
8.03/CD
%/NN
./.
The/DT
dollar/NN
dropped/VBD
./.
In/IN
New/NNP
York/NNP
late/JJ
yesterday/NN
,/,
the/DT
currency/NN
was/VBD
at/IN
141.45/CD
yen/NNS
and/CC
1.8485/CD
marks/NNS
,/,
down/RB
from/IN
142.75/CD
yen/NNS
and/CC
1.8667/CD
marks/NNS
late/JJ
Tuesday/NNP
./.
James/NNP
L./NNP
Madson/NNP
,/,
46/CD
years/NNS
old/JJ
,/,
was/VBD
named/VBN
a/DT
vice/NN
president/NN
and/CC
assistant/JJ
general/JJ
manager/NN
of/IN
this/DT
producer/NN
of/IN
copper/NN
and/CC
other/JJ
minerals/NNS
./.
He/PRP
will/MD
succeed/VB
Arthur/NNP
E./NNP
Himebaugh/NNP
as/IN
general/JJ
manager/NN
Feb./NNP
1/CD
,/,
when/WRB
Mr./NNP
Himebaugh/NNP
retires/VBZ
./.
AMR/NNP
Corp./NNP
posted/VBD
an/DT
8.8/CD
%/NN
drop/NN
in/IN
third-quarter/JJ
net/JJ
income/NN
and/CC
said/VBD
the/DT
fourth/JJ
quarter/NN
will/MD
be/VB
``/``
disappointing/JJ
''/''
as/IN
well/RB
,/,
primarily/RB
because/IN
of/IN
slimmer/JJR
profit/NN
margins/NNS
and/CC
increased/VBN
fuel/NN
costs/NNS
./.
AMR/NNP
's/POS
earnings/NNS
decline/NN
comes/VBZ
a/DT
year/NN
after/IN
the/DT
parent/NN
company/NN
of/IN
American/NNP
Airlines/NNPS
and/CC
the/DT
rest/NN
of/IN
the/DT
airline/NN
industry/NN
set/VBD
profit/NN
records/NNS
./.
Some/DT
analysts/NNS
say/VBP
the/DT
latest/JJS
results/NNS
only/RB
seem/VBP
pale/JJ
by/IN
comparison/NN
with/IN
a/DT
spectacular/JJ
second/JJ
half/NN
of/IN
1988/CD
./.
Still/RB
,/,
AMR/NNP
's/POS
stumble/NN
does/VBZ
n't/RB
bode/VB
well/RB
for/IN
the/DT
rest/NN
of/IN
the/DT
industry/NN
./.
The/DT
Fort/NNP
Worth/NNP
,/,
Texas/NNP
,/,
company/NN
is/VBZ
generally/RB
regarded/VBN
as/IN
one/CD
of/IN
the/DT
best-run/JJS
in/IN
the/DT
business/NN
,/,
and/CC
its/PRP$
difficulties/NNS
are/VBP
likely/JJ
to/TO
be/VB
reflected/VBN
industrywide/RB
as/IN
other/JJ
major/JJ
carriers/NNS
report/VBP
third-quarter/JJ
results/NNS
over/IN
the/DT
next/JJ
several/JJ
days/NNS
./.
Meanwhile/RB
,/,
the/DT
company/NN
's/POS
board/NN
,/,
which/WDT
had/VBD
said/VBN
nothing/NN
publicly/RB
about/IN
investor/NN
Donald/NNP
Trump/NNP
's/POS
recently/RB
withdrawn/VBN
$/$
7.5/CD
billion/CD
offer/NN
for/IN
AMR/NNP
,/,
issued/VBD
a/DT
statement/NN
condemning/VBG
``/``
ill-conceived/JJ
and/CC
reckless/JJ
''/''
bids/NNS
and/CC
saying/VBG
it/PRP
was/VBD
``/``
pleased/JJ
''/''
that/IN
Mr./NNP
Trump/NNP
had/VBD
backed/VBN
out/RB
./.
In/IN
the/DT
third/JJ
quarter/NN
,/,
AMR/NNP
said/VBD
,/,
net/NN
fell/VBD
to/TO
$/$
137/CD
million/CD
,/,
or/CC
$/$
2.16/CD
a/DT
share/NN
,/,
from/IN
$/$
150.3/CD
million/CD
,/,
or/CC
$/$
2.50/CD
a/DT
share/NN
./.
Revenue/NN
rose/VBD
17/CD
%/NN
to/TO
$/$
2.73/CD
billion/CD
from/IN
$/$
2.33/CD
billion/CD
a/DT
year/NN
earlier/RB
./.
AMR/NNP
's/POS
chairman/NN
,/,
Robert/NNP
L./NNP
Crandall/NNP
,/,
said/VBD
the/DT
results/NNS
were/VBD
due/JJ
to/TO
an/DT
11/CD
%/NN
year-to-year/JJ
increase/NN
in/IN
fuel/NN
prices/NNS
and/CC
a/DT
slight/JJ
decrease/NN
in/IN
yield/NN
,/,
an/DT
industry/NN
measure/NN
analogous/JJ
to/TO
profit/NN
margin/NN
on/IN
each/DT
seat/NN
sold/VBN
./.
``/``
We/PRP
think/VBP
these/DT
trends/NNS
will/MD
continue/VB
and/CC
will/MD
produce/VB
a/DT
very/RB
disappointing/JJ
fourth/JJ
quarter/NN
as/IN
well/RB
,/,
''/''
he/PRP
said/VBD
./.
Tim/NNP
Pettee/NNP
,/,
an/DT
analyst/NN
with/IN
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
,/,
said/VBD
:/:
``/``
The/DT
business/NN
turned/VBD
faster/RBR
than/IN
expected/VBN
./.
Costs/NNS
are/VBP
giving/VBG
them/PRP
a/DT
little/JJ
bit/NN
of/IN
trouble/NN
,/,
and/CC
the/DT
whole/JJ
industry/NN
is/VBZ
having/VBG
a/DT
pricing/NN
problem/NN
./.
''/''
For/IN
the/DT
nine/CD
months/NNS
,/,
AMR/NNP
's/POS
net/NN
rose/VBD
15/CD
%/NN
to/TO
$/$
415.9/CD
million/CD
,/,
or/CC
$/$
6.59/CD
a/DT
share/NN
,/,
from/IN
$/$
360.1/CD
million/CD
,/,
or/CC
$/$
5.99/CD
a/DT
share/NN
./.
Revenue/NN
jumped/VBD
22/CD
%/NN
to/TO
$/$
7.89/CD
billion/CD
from/IN
$/$
6.46/CD
billion/CD
./.
AMR/NNP
's/POS
board/NN
,/,
in/IN
a/DT
statement/NN
after/IN
a/DT
regular/JJ
meeting/NN
yesterday/NN
,/,
said/VBD
:/:
``/``
Ill-considered/JJ
and/CC
reckless/JJ
acquisition/NN
proposals/NNS
adversely/RB
affect/VBP
employee/NN
,/,
financial/JJ
and/CC
business/NN
relationships/NNS
and/CC
are/VBP
contrary/JJ
to/TO
the/DT
best/JJS
interests/NNS
of/IN
AMR/NNP
shareholders/NNS
.../:
./.
AMR/NNP
has/VBZ
not/RB
been/VBN
,/,
and/CC
is/VBZ
not/RB
,/,
for/IN
sale/NN
./.
''/''
Mr./NNP
Crandall/NNP
said/VBD
the/DT
company/NN
's/POS
current/JJ
decline/NN
in/IN
earnings/NNS
is/VBZ
exactly/RB
the/DT
kind/NN
of/IN
situation/NN
that/IN
an/DT
excessively/RB
leveraged/JJ
company/NN
laden/JJ
with/IN
debt/NN
from/IN
a/DT
takeover/NN
would/MD
find/VB
difficult/JJ
to/TO
weather/VB
./.
``/``
Our/PRP$
very/RB
disappointing/JJ
third-quarter/JJ
results/NNS
and/CC
the/DT
discouraging/JJ
outlook/NN
for/IN
the/DT
fourth/JJ
quarter/NN
underscore/VBP
the/DT
importance/NN
of/IN
an/DT
adequate/JJ
capital/NN
base/NN
,/,
''/''
he/PRP
said/VBD
./.
Christopher/NNP
Whittington/NNP
,/,
51-year-old/JJ
deputy/NN
chairman/NN
of/IN
this/DT
British/JJ
investment-banking/NN
group/NN
and/CC
chairman/NN
of/IN
Morgan/NNP
Grenfell/NNP
&/CC
Co./NNP
,/,
the/DT
group/NN
's/POS
main/JJ
banking/NN
unit/NN
,/,
has/VBZ
retired/VBN
from/IN
his/PRP$
executive/NN
duties/NNS
./.
Succeeding/VBG
Mr./NNP
Whittington/NNP
as/IN
deputy/NN
chairman/NN
of/IN
the/DT
group/NN
is/VBZ
Anthony/NNP
Richmond-Watson/NNP
,/,
43/CD
,/,
currently/RB
a/DT
main/JJ
board/NN
member/NN
./.
Succeeding/VBG
Mr./NNP
Whittington/NNP
at/IN
Morgan/NNP
Grenfell/NNP
&/CC
Co./NNP
is/VBZ
Richard/NNP
Webb/NNP
,/,
50/CD
,/,
currently/RB
deputy/NN
chairman/NN
./.
Mr./NNP
Whittington/NNP
will/MD
remain/VB
on/IN
the/DT
main/JJ
group/NN
board/NN
as/IN
a/DT
nonexecutive/JJ
director/NN
./.
Without/IN
federal/JJ
subsidies/NNS
to/TO
developers/NNS
of/IN
beach/NN
houses/NNS
,/,
the/DT
economic/JJ
and/CC
structural/JJ
damage/NN
by/IN
Hurricane/NNP
Hugo/NNP
in/IN
South/NNP
Carolina/NNP
would/MD
have/VB
been/VBN
much/RB
less/JJR
,/,
as/RB
highlighted/VBN
by/IN
your/PRP$
Oct./NNP
3/CD
editorial/NN
``/``
Subsidizing/VBG
Disaster/NN
./.
''/''
Congress/NNP
should/MD
stop/VB
throwing/VBG
tax/NN
dollars/NNS
out/IN
to/TO
sea/NN
by/IN
subsidizing/VBG
the/DT
development/NN
of/IN
beach/NN
communities/NNS
on/IN
ecologically/RB
fragile/JJ
coastal/JJ
barrier/NN
islands/NNS
,/,
such/JJ
as/IN
the/DT
hard-hit/JJ
Isle/NNP
of/IN
Palms/NNPS
near/IN
Charleston/NNP
./.
As/IN
you/PRP
mentioned/VBD
,/,
subsidies/NNS
for/IN
development/NN
on/IN
a/DT
number/NN
of/IN
barrier/NN
islands/NNS
were/VBD
curtailed/VBN
in/IN
1982/CD
by/IN
the/DT
Coastal/NNP
Barrier/NNP
Resource/NNP
System/NNP
./.
The/DT
National/NNP
Taxpayers/NNPS
Union/NNP
would/MD
like/VB
Congress/NNP
to/TO
add/VB
800,000/CD
acres/NNS
to/TO
the/DT
453,000/CD
of/IN
shoreline/NN
in/IN
the/DT
system/NN
by/IN
enacting/VBG
``/``
The/DT
Coastal/NNP
Barrier/NNP
Improvement/NNP
Act/NNP
of/IN
1989/CD
./.
''/''
This/DT
bill/NN
simply/RB
says/VBZ
that/IN
if/IN
you/PRP
want/VBP
to/TO
develop/VB
property/NN
on/IN
a/DT
barrier/NN
island/NN
you/PRP
have/VBP
to/TO
do/VB
so/RB
without/IN
taxpayer/NN
support/NN
./.
Private-property/NN
rights/NNS
would/MD
be/VB
upheld/VBN
because/IN
the/DT
legislation/NN
would/MD
not/RB
ban/VB
coastal/JJ
development/NN
./.
However/RB
,/,
home/NN
builders/NNS
would/MD
have/VB
to/TO
bear/VB
the/DT
full/JJ
costs/NNS
of/IN
such/JJ
beach-house/NN
construction/NN
./.
A/DT
Taxpayers/NNPS
Union/NNP
study/NN
concluded/VBD
the/DT
bill/NN
would/MD
save/VB
taxpayers/NNS
up/IN
to/TO
$/$
9.3/CD
billion/CD
in/IN
barrier-island/NN
subsidies/NNS
over/IN
20/CD
years/NNS
./.
Already/RB
,/,
the/DT
1982/CD
legislation/NN
has/VBZ
saved/VBN
an/DT
estimated/VBN
$/$
800/CD
million/CD
./.
Marshall/NNP
Y./NNP
Taylor/NNP
Communications/NNPS
Director/NNP
National/NNP
Taxpayers/NNPS
Union/NNP
Washington/NNP
The/DT
government/NN
said/VBD
13.1/CD
%/NN
of/IN
Americans/NNPS
,/,
or/CC
31.9/CD
million/CD
people/NNS
,/,
were/VBD
living/VBG
in/IN
poverty/NN
in/IN
1988/CD
./.
While/IN
last/JJ
year/NN
's/POS
figure/NN
was/VBD
down/RB
from/IN
13.4/CD
%/NN
in/IN
1987/CD
and/CC
marked/VBD
the/DT
fifth/JJ
consecutive/JJ
annual/JJ
decline/NN
in/IN
the/DT
poverty/NN
rate/NN
,/,
the/DT
Census/NNP
Bureau/NNP
said/VBD
the/DT
1988/CD
drop/NN
was/VBD
n't/RB
statistically/RB
significant/JJ
./.
The/DT
bureau/NN
's/POS
report/NN
also/RB
showed/VBD
that/IN
while/IN
some/DT
measures/NNS
of/IN
the/DT
nation/NN
's/POS
economic/JJ
well-being/NN
improved/VBN
modestly/RB
in/IN
1988/CD
,/,
the/DT
fruits/NNS
of/IN
prosperity/NN
were/VBD
shared/VBN
less/RBR
equitably/RB
than/IN
the/DT
year/NN
before/RB
./.
Summarizing/VBG
data/NNS
derived/VBN
from/IN
a/DT
March/NNP
1989/CD
survey/NN
of/IN
58,000/CD
households/NNS
,/,
William/NNP
Butz/NNP
,/,
associate/JJ
director/NN
of/IN
the/DT
Census/NNP
Bureau/NNP
,/,
said/VBD
that/IN
``/``
most/JJS
groups/NNS
either/CC
stayed/VBD
the/DT
same/JJ
or/CC
improved/VBD
./.
''/''
But/CC
,/,
he/PRP
added/VBD
,/,
``/``
Since/IN
the/DT
late/JJ
1960s/NNS
,/,
the/DT
distribution/NN
of/IN
income/NN
has/VBZ
been/VBN
slowly/RB
getting/VBG
less/RBR
equal/JJ
./.
There/EX
was/VBD
no/DT
reversal/NN
that/DT
trend/NN
1987/CD
and/CC
1988/CD
./.
''/''
Per/IN
capita/NN
income/NN
,/,
a/DT
widely/RB
used/JJ
measure/NN
of/IN
a/DT
nation/NN
's/POS
economic/JJ
health/NN
,/,
hit/VBD
a/DT
record/NN
in/IN
1988/CD
,/,
rising/VBG
1.7/CD
%/NN
after/IN
inflation/NN
adjustment/NN
to/TO
$/$
13,120/CD
./.
But/CC
the/DT
median/JJ
income/NN
of/IN
American/JJ
families/NNS
fell/VBD
0.2/CD
%/NN
,/,
the/DT
first/JJ
time/NN
it/PRP
has/VBZ
failed/VBN
to/TO
rise/VB
since/IN
1982/CD
./.
Mr./NNP
Butz/NNP
said/VBD
the/DT
divergence/NN
in/IN
the/DT
two/CD
measures/NNS
reflects/VBZ
changes/NNS
in/IN
family/NN
size/NN
and/CC
structure/NN
,/,
including/VBG
the/DT
rising/VBG
number/NN
of/IN
female-headed/JJ
families/NNS
and/CC
a/DT
sharp/JJ
increase/NN
in/IN
income/NN
reported/VBN
by/IN
Americans/NNPS
who/WP
are/VBP
n't/RB
living/VBG
in/IN
families/NNS
./.
As/IN
a/DT
result/NN
of/IN
last/JJ
year/NN
's/POS
decline/NN
,/,
the/DT
government/NN
's/POS
estimate/NN
for/IN
the/DT
number/NN
of/IN
people/NNS
living/VBG
below/IN
the/DT
poverty/NN
line/NN
declined/VBN
by/IN
about/IN
500,000/CD
./.
The/DT
poverty/NN
threshold/NN
,/,
defined/VBN
as/IN
three/CD
times/NNS
food/NN
expenses/NNS
as/IN
calculated/VBN
by/IN
the/DT
Agricultural/NNP
Department/NNP
,/,
last/JJ
year/NN
was/VBD
$/$
12,092/CD
for/IN
a/DT
family/NN
of/IN
four/CD
./.
The/DT
Census/NNP
Bureau/NNP
counts/VBZ
all/DT
cash/NN
income/NN
in/IN
determining/VBG
whether/IN
families/NNS
are/VBP
below/IN
the/DT
line/NN
,/,
but/CC
it/PRP
does/VBZ
n't/RB
consider/VB
other/JJ
government/NN
benefits/NNS
,/,
such/JJ
as/IN
Medicare/NNP
./.
Thanks/NNS
largely/RB
to/TO
the/DT
continued/JJ
growth/NN
of/IN
the/DT
U.S./NNP
economy/NN
,/,
the/DT
poverty/NN
rate/NN
is/VBZ
now/RB
substantially/RB
lower/JJR
than/IN
the/DT
1983/CD
peak/NN
of/IN
15.3/CD
%/NN
,/,
but/CC
the/DT
improvements/NNS
have/VBP
been/VBN
modest/JJ
in/IN
the/DT
past/JJ
couple/NN
of/IN
years/NNS
./.
Poverty/NN
remains/VBZ
far/RB
more/RBR
widespread/JJ
among/IN
blacks/NNS
than/IN
other/JJ
Americans/NNPS
./.
In/IN
1988/CD
,/,
31.6/CD
%/NN
of/IN
blacks/NNS
lived/VBN
in/IN
poverty/NN
,/,
compared/VBN
with/IN
10.1/CD
%/NN
for/IN
whites/NNS
and/CC
26.8/CD
%/NN
for/IN
Hispanics/NNPS
./.
But/CC
two-thirds/NNS
of/IN
all/DT
poor/JJ
Americans/NNPS
were/VBD
white/JJ
./.
More/JJR
than/IN
half/DT
of/IN
poor/JJ
families/NNS
were/VBD
headed/VBN
by/IN
women/NNS
living/VBG
without/IN
men/NNS
,/,
the/DT
bureau/NN
said/VBD
./.
More/JJR
than/IN
three-fourths/NNS
of/IN
poor/JJ
black/JJ
families/NNS
were/VBD
headed/VBN
by/IN
women/NNS
./.
The/DT
poverty/NN
rate/NN
of/IN
children/NNS
under/IN
18/CD
years/NNS
old/JJ
dropped/VBD
last/JJ
year/NN
to/TO
19.7/CD
%/NN
from/IN
20.5/CD
%/NN
in/IN
1987/CD
,/,
but/CC
remained/VBD
far/RB
higher/JJR
than/IN
a/DT
decade/NN
ago/RB
./.
The/DT
rate/NN
among/IN
the/DT
elderly/JJ
--/:
12/CD
%/NN
in/IN
1988/CD
--/:
was/VBD
n't/RB
significantly/RB
lower/JJR
than/IN
the/DT
year/NN
before/RB
./.
If/IN
it/PRP
were/VBD
n't/RB
for/IN
Social/NNP
Security/NNP
payments/NNS
,/,
more/JJR
than/IN
three/CD
times/NNS
as/IN
many/JJ
elderly/JJ
would/MD
be/VB
below/IN
the/DT
poverty/NN
line/NN
,/,
Mr./NNP
Butz/NNP
said/VBD
./.
The/DT
Census/NNP
Bureau/NNP
also/RB
said/VBD
:/:
--/:
Some/DT
17.2/CD
%/NN
of/IN
all/DT
money/NN
income/NN
received/VBN
by/IN
families/NNS
in/IN
1988/CD
went/VBD
to/TO
the/DT
wealthiest/JJS
5/CD
%/NN
of/IN
all/DT
families/NNS
,/,
up/RB
from/IN
16.9/CD
%/NN
in/IN
1987/CD
./.
That/DT
is/VBZ
the/DT
greatest/JJS
share/NN
reported/VBN
for/IN
any/DT
year/NN
since/IN
1950/CD
,/,
although/IN
changing/JJ
definitions/NNS
over/IN
the/DT
years/NNS
distort/VBP
the/DT
comparison/NN
./.
--/:
The/DT
top/JJ
fifth/NN
of/IN
all/DT
families/NNS
got/VBD
44/CD
%/NN
of/IN
the/DT
income/NN
,/,
up/RB
from/IN
41.5/CD
%/NN
a/DT
decade/NN
earlier/RB
./.
The/DT
bottom/JJ
fifth/JJ
of/IN
all/DT
families/NNS
got/VBD
4.6/CD
%/NN
of/IN
the/DT
income/NN
,/,
down/RB
from/IN
5.2/CD
%/NN
a/DT
decade/NN
earlier/RB
./.
--/:
Confirming/VBG
other/JJ
government/NN
data/NNS|NN
showing/VBG
that/IN
wages/NNS
are/VBP
n't/RB
keeping/VBG
pace/NN
with/IN
inflation/NN
,/,
earnings/NNS
of/IN
year-round/JJ
,/,
full-time/JJ
male/NN
workers/NNS
fell/VBD
1.3/CD
%/NN
in/IN
1988/CD
after/IN
adjusting/VBG
for/IN
higher/JJR
prices/NNS
,/,
the/DT
first/JJ
such/JJ
drop/NN
since/IN
1982/CD
./.
Earnings/NNS
of/IN
female/JJ
workers/NNS
were/VBD
unchanged/JJ
./.
--/:
Women/NNS
working/VBG
full-time/RB
earned/VBD
66/CD
cents/NNS
for/IN
every/DT
dollar/NN
earned/VBN
by/IN
men/NNS
,/,
a/DT
penny/NN
more/RBR
than/IN
in/IN
1987/CD
and/CC
seven/CD
cents/NNS
more/RBR
than/IN
in/IN
1978/CD
./.
--/:
Median/JJ
household/NN
income/NN
--/:
which/WDT
includes/VBZ
both/DT
those/DT
living/VBG
in/IN
families/NNS
and/CC
those/DT
who/WP
are/VBP
n't/RB
--/:
rose/VBD
0.3/CD
%/NN
last/JJ
year/NN
to/TO
$/$
27,225/CD
after/IN
inflation/NN
./.
It/PRP
rose/VBD
sharply/RB
in/IN
the/DT
Northeast/NNP
and/CC
Midwest/NNP
and/CC
fell/VBD
slightly/RB
in/IN
the/DT
South/NNP
and/CC
West/NNP
./.
Median/JJ
family/NN
income/NN
was/VBD
$/$
32,191/CD
,/,
down/RB
0.2/CD
%/NN
./.
--/:
Per/IN
capita/NN
income/NN
of/IN
blacks/NNS
,/,
though/IN
still/RB
only/RB
60/CD
%/NN
that/IN
of/IN
whites/NNS
,/,
rose/VBD
3.9/CD
%/NN
in/IN
1988/CD
,/,
while/IN
per/IN
capita/NN
income/NN
of/IN
whites/NNS
rose/VBD
only/RB
1.5/CD
%/NN
./.
--/:
Among/IN
married/JJ
couples/NNS
,/,
the/DT
gap/NN
between/IN
blacks/NNS
and/CC
whites/NNS
narrowed/VBN
sharply/RB
,/,
as/IN
income/NN
of/IN
black/JJ
families/NNS
shot/VBD
up/RB
6.8/CD
%/NN
while/NN
income/NN
of/IN
whites/NNS
did/VBD
n't/RB
budge/VB
./.
Fueling/VBG
a/DT
controversy/NN
that/WDT
has/VBZ
been/VBN
simmering/VBG
for/IN
years/NNS
,/,
the/DT
Census/NNP
Bureau/NNP
also/RB
said/VBD
its/PRP$
figures/NNS
would/MD
look/VB
far/RB
rosier/RBR
if/IN
it/PRP
recalculated/VBD
the/DT
poverty/NN
threshold/NN
using/VBG
an/DT
improved/VBN
consumer-price/NN
measure/NN
adopted/VBN
in/IN
1983/CD
./.
The/DT
bureau/NN
said/VBD
some/DT
3.5/CD
million/CD
fewer/JJR
people/NNS
would/MD
have/VB
fallen/VBN
below/IN
the/DT
poverty/NN
line/NN
in/IN
1988/CD
--/:
and/CC
the/DT
poverty/NN
rate/NN
would/MD
have/VB
been/VBN
10.5/CD
%/NN
instead/RB
of/IN
13.1/CD
%/NN
--/:
under/IN
the/DT
alternative/JJ
calculation/NN
./.
Critics/NNS
on/IN
the/DT
left/NN
and/CC
right/NN
have/VBP
been/VBN
calling/VBG
for/IN
all/DT
sorts/NNS
of/IN
revisions/NNS
to/TO
the/DT
measure/NN
for/IN
years/NNS
./.
A/DT
report/NN
by/IN
the/DT
staff/NN
of/IN
the/DT
Joint/NNP
Economic/NNP
Committee/NNP
of/IN
Congress/NNP
released/VBN
yesterday/NN
concluded/VBD
,/,
``/``
It/PRP
is/VBZ
misleading/VBG
to/TO
make/VB
this/DT
change/NN
without/IN
adjusting/VBG
for/IN
other/JJ
changes/NNS
./.
''/''
The/DT
official/JJ
poverty/NN
threshold/NN
is/VBZ
set/VBN
by/IN
the/DT
Office/NNP
of/IN
Management/NNP
and/CC
Budget/NNP
./.
John/NNP
E./NNP
Hayes/NNP
Jr./NNP
was/VBD
elected/VBN
chairman/NN
,/,
president/NN
and/CC
chief/JJ
executive/NN
officer/NN
,/,
succeeding/VBG
David/NNP
S./NNP
Black/NNP
,/,
who/WP
retired/VBD
./.
Mr./NNP
Hayes/NNP
,/,
52/CD
years/NNS
old/JJ
,/,
left/VBD
Southwestern/NNP
Bell/NNP
Telephone/NNP
Co./NNP
in/IN
January/NNP
,/,
where/WRB
he/PRP
had/VBD
been/VBN
chairman/NN
,/,
president/NN
and/CC
chief/JJ
executive/NN
,/,
to/TO
join/VB
Triad/NNP
Capital/NNP
Partners/NNPS
,/,
a/DT
St./NNP
Louis/NNP
company/NN
with/IN
interests/NNS
in/IN
solid/JJ
waste/NN
and/CC
recycling/NN
,/,
telecommunications/NN
and/CC
international/JJ
venture/NN
capital/NN
./.
He/PRP
has/VBZ
resigned/VBN
his/PRP$
posts/NNS
at/IN
Triad/NNP
to/TO
take/VB
the/DT
Kansas/NNP
Power/NNP
positions/NNS
./.
Kansas/NNP
Power/NNP
said/VBD
Mr./NNP
Black/NNP
,/,
61/CD
,/,
chose/VBD
early/JJ
retirement/NN
./.
The/DT
space/NN
shuttle/NN
Atlantis/NNS
boosted/VBD
the/DT
Galileo/NNP
spacecraft/NN
on/IN
its/PRP$
way/NN
to/TO
Jupiter/NNP
,/,
giving/VBG
a/DT
big/JJ
lift/NN
as/RB
well/RB
to/TO
an/DT
ambitious/JJ
U.S./NNP
program/NN
of/IN
space/NN
exploration/NN
./.
Seven/CD
years/NNS
late/JJ
in/IN
the/DT
launching/NN
,/,
$/$
1/CD
billion/CD
over/IN
budget/NN
and/CC
a/DT
target/NN
of/IN
anti-nuclear/JJ
protestors/NNS
,/,
Galileo/NNP
has/VBZ
long/RB
been/VBN
a/DT
symbol/NN
of/IN
trouble/NN
for/IN
the/DT
National/NNP
Aeronautics/NNP
and/CC
Space/NNP
Administration/NNP
./.
But/CC
yesterday/NN
,/,
as/IN
Atlantis/NNP
rumbled/VBD
into/IN
a/DT
patch/NN
of/IN
clear/JJ
sky/NN
above/IN
Florida/NNP
with/IN
storm/NN
clouds/NNS
closing/VBG
in/IN
on/IN
it/PRP
,/,
NASA/NNP
sought/VBD
to/TO
turn/VB
Galileo/NNP
into/IN
a/DT
symbol/NN
of/IN
triumph/NN
./.
``/``
NASA/NNP
did/VBD
it/PRP
right/RB
;/:
that/DT
's/VBZ
the/DT
message/NN
,/,
''/''
said/VBD
J.R./NNP
Thompson/NNP
,/,
the/DT
agency/NN
's/POS
deputy/NN
administrator/NN
./.
The/DT
$/$
1.4/CD
billion/CD
robot/NN
spacecraft/NN
faces/VBZ
a/DT
six-year/JJ
journey/NN
to/TO
explore/VB
Jupiter/NNP
and/CC
its/PRP$
16/CD
known/JJ
moons/NNS
./.
If/IN
all/DT
goes/VBZ
well/RB
,/,
it/PRP
will/MD
parachute/VB
a/DT
probe/NN
into/IN
the/DT
dense/JJ
Jovian/JJ
atmosphere/NN
in/IN
July/NNP
1995/CD
to/TO
pick/VB
up/RP
detailed/JJ
data/NNS
about/IN
gases/NNS
that/WDT
may/MD
be/VB
similar/JJ
to/TO
the/DT
material/NN
from/IN
which/WDT
the/DT
solar/JJ
system/NN
was/VBD
formed/VBN
4.6/CD
billion/CD
years/NNS
ago/RB
./.
Jupiter/NNP
is/VBZ
so/RB
enormous/JJ
--/:
its/PRP$
mass/NN
is/VBZ
318/CD
times/NNS
that/IN
of/IN
Earth/NNP
--/:
that/IN
its/PRP$
gravity/NN
may/MD
have/VB
trapped/VBN
these/DT
primordial/JJ
gases/NNS
and/CC
never/RB
let/VB
them/PRP
escape/VB
./.
Investigating/VBG
Jupiter/NNP
in/IN
detail/NN
may/MD
provide/VB
clues/NNS
to/TO
what/WP
astronomer/NN
Tobias/NNP
Owen/NNP
calls/VBZ
the/DT
``/``
cosmic/JJ
paradox/NN
''/''
of/IN
life/NN
:/:
Jupiter/NNP
and/CC
other/JJ
bodies/NNS
in/IN
the/DT
outer/JJ
solar/JJ
system/NN
are/VBP
rich/JJ
in/IN
elements/NNS
such/JJ
as/IN
hydrogen/NN
that/WDT
are/VBP
essential/JJ
for/IN
life/NN
on/IN
Earth/NNP
,/,
but/CC
these/DT
planets/NNS
are/VBP
lifeless/JJ
;/:
Earth/NNP
,/,
on/IN
the/DT
other/JJ
hand/NN
,/,
has/VBZ
a/DT
diminished/JJ
store/NN
of/IN
such/JJ
material/NN
but/CC
is/VBZ
rich/JJ
in/IN
life/NN
./.
Some/DT
scientists/NNS
have/VBP
suggested/VBN
that/IN
comets/NNS
and/CC
asteroids/NNS
may/MD
have/VB
brought/VBN
enough/JJ
of/IN
this/DT
kind/NN
of/IN
material/NN
from/IN
the/DT
outer/JJ
solar/JJ
system/NN
to/TO
Earth/NNP
to/TO
spawn/VB
life/NN
./.
Beginning/VBG
in/IN
December/NNP
1995/CD
,/,
Galileo/NNP
will/MD
begin/VB
a/DT
two-year/JJ
tour/NN
of/IN
the/DT
Jovian/JJ
moons/NNS
./.
In/IN
1979/CD
,/,
two/CD
Voyager/NNP
spacecraft/NN
sent/VBD
back/RB
stunning/JJ
photos/NNS
of/IN
Jovian/JJ
moons/NNS
Io/NNP
and/CC
Europa/NNP
that/WDT
showed/VBD
them/PRP
to/TO
be/VB
among/IN
the/DT
most/RBS
intriguing/JJ
bodies/NNS
in/IN
the/DT
solar/JJ
system/NN
./.
The/DT
photos/NNS
showed/VBD
active/JJ
geysers/NNS
on/IN
Io/NNP
spewing/VBG
sulfurous/JJ
material/NN
190/CD
miles/NNS
into/IN
its/PRP$
atmosphere/NN
and/CC
indicated/VBD
that/IN
Europa/NNP
may/MD
have/VB
an/DT
ocean/NN
hidden/VBN
under/IN
a/DT
thick/JJ
sheet/NN
of/IN
ice/NN
./.
Galileo/NNP
's/POS
photos/NNS
of/IN
Europa/NN
will/MD
be/VB
more/JJR
than/IN
1,000/CD
times/NNS
as/RB
sharp/JJ
as/IN
Voyager/NNP
's/POS
,/,
according/VBG
to/TO
Torrence/NNP
Johnson/NNP
,/,
Galileo/NNP
's/POS
project/NN
scientist/NN
,/,
and/CC
may/MD
show/VB
whether/IN
it/PRP
actually/RB
has/VBZ
the/DT
only/RB
known/JJ
ocean/NN
other/JJ
than/IN
those/DT
on/IN
Earth/NNP
./.
Atlantis/NNP
lifted/VBD
Galileo/NNP
from/IN
the/DT
launch/NN
pad/NN
at/IN
12:54/CD
p.m./RB
EDT/NNP
and/CC
released/VBD
the/DT
craft/NN
from/IN
its/PRP$
cargo/NN
bay/NN
about/IN
six/CD
hours/NNS
later/RB
./.
``/``
Galileo/NNP
is/VBZ
on/IN
its/PRP$
way/NN
to/TO
another/DT
world/NN
in/IN
the/DT
hands/NNS
of/IN
the/DT
best/JJS
flight/NN
controllers/NNS
in/IN
this/DT
world/NN
,/,
''/''
Atlantis/NNP
Commander/NNP
Donald/NNP
Williams/NNP
said/VBD
./.
``/``
Fly/VB
safely/RB
./.
''/''
The/DT
five-member/JJ
Atlantis/NNP
crew/NN
will/MD
conduct/VB
several/JJ
experiments/NNS
,/,
including/VBG
growing/VBG
plants/NNS
and/CC
processing/VBG
polymeric/JJ
materials/NNS
in/IN
space/NN
,/,
before/IN
their/PRP$
scheduled/VBN
landing/NN
at/IN
Edwards/NNP
Air/NNP
Force/NNP
Base/NNP
,/,
Calif./NNP
,/,
Monday/NNP
./.
The/DT
Galileo/NNP
project/NN
started/VBN
in/IN
1977/CD
,/,
and/CC
a/DT
number/NN
of/IN
project/NN
veterans/NNS
were/VBD
on/IN
hand/NN
to/TO
watch/VB
the/DT
launch/NN
./.
An/DT
ebullient/JJ
Mr./NNP
Johnson/NNP
,/,
wearing/VBG
a/DT
NASA/NNP
baseball/NN
cap/NN
and/CC
carrying/VBG
a/DT
camera/NN
and/CC
binoculars/NNS
,/,
called/VBD
the/DT
launch/NN
``/``
fantastic/JJ
./.
''/''
Benny/NNP
Chin/NNP
,/,
manager/NN
of/IN
the/DT
Galileo/NNP
probe/NN
,/,
compared/VBD
it/PRP
to/TO
watching/VBG
a/DT
child/NN
leave/VB
home/RB
./.
``/``
I/PRP
'm/VBP
happy/JJ
and/CC
sad/JJ
,/,
''/''
he/PRP
said/VBD
./.
Anti-nuclear/JJ
activists/NNS
took/VBD
a/DT
less/RBR
positive/JJ
view/NN
./.
Having/VBG
argued/VBN
that/IN
Galileo/NNP
's/POS
plutonium/NN
power/NN
source/NN
could/MD
have/VB
released/VBN
lethal/JJ
doses/NNS
of/IN
radiation/NN
if/IN
the/DT
shuttle/NN
exploded/VBD
yesterday/RB
,/,
they/PRP
were/VBD
n't/RB
quieted/VBN
by/IN
yesterday/NN
's/POS
successful/JJ
launch/NN
./.
Galileo/NNP
will/MD
skim/VB
past/IN
Earth/NNP
in/IN
1990/CD
and/CC
1992/CD
,/,
collecting/VBG
energy/NN
from/IN
the/DT
planet/NN
's/POS
gravitational/JJ
field/NN
to/TO
gain/VB
momentum/NN
for/IN
its/PRP$
trip/NN
to/TO
Jupiter/NNP
./.
The/DT
protesters/NNS
point/VBP
out/RB
that/IN
Galileo/NNP
also/RB
could/MD
crash/VB
to/TO
Earth/NNP
then/RB
./.
They/PRP
said/VBD
they/PRP
dropped/VBD
plans/NNS
to/TO
infiltrate/VB
the/DT
Kennedy/NNP
Space/NNP
Center/NNP
after/IN
NASA/NNP
beefed/VBD
up/RP
its/PRP$
security/NN
./.
One/CD
protest/NN
did/VBD
get/VB
past/IN
NASA/NNP
's/POS
guard/NN
,/,
though/RB
;/:
a/DT
computer/NN
virus/NN
caused/VBD
anti-Galileo/JJ
messages/NNS
to/TO
flash/VB
onto/IN
some/DT
computer/NN
screens/NNS
at/IN
NASA/NNP
centers/NNS
./.
The/DT
successful/JJ
launch/NN
continues/VBZ
a/DT
remarkable/JJ
recovery/NN
in/IN
the/DT
U.S./NNP
space-science/NN
program/NN
./.
An/DT
unmanned/JJ
spacecraft/NN
,/,
Magellan/NNP
,/,
already/RB
is/VBZ
heading/VBG
to/TO
Venus/NNP
and/CC
is/VBZ
due/JJ
to/TO
begin/VB
mapping/VBG
the/DT
planet/NN
next/IN
August/NNP
./.
Voyager/NNP
2/CD
sent/VBD
back/RB
spectacular/JJ
photos/NNS
of/IN
Neptune/NNP
and/CC
its/PRP$
moon/NN
,/,
Triton/NNP
,/,
this/DT
summer/NN
./.
Next/JJ
month/NN
,/,
NASA/NNP
plans/VBZ
to/TO
launch/VB
a/DT
satellite/NN
to/TO
study/VB
cosmic/JJ
rays/NNS
dating/VBG
from/IN
the/DT
birth/NN
of/IN
the/DT
universe/NN
./.
In/IN
December/NNP
,/,
the/DT
shuttle/NN
Columbia/NNP
will/MD
try/VB
to/TO
retrieve/VB
a/DT
satellite/NN
that/WDT
's/VBZ
been/VBN
in/IN
orbit/NN
for/IN
nearly/RB
five/CD
years/NNS
measuring/VBG
the/DT
deleterious/JJ
effects/NNS
of/IN
space/NN
on/IN
materials/NNS
and/CC
instruments/NNS
./.
Next/IN
March/NNP
,/,
the/DT
shuttle/NN
Discovery/NNP
will/MD
launch/VB
the/DT
Hubble/NNP
space/NN
telescope/NN
,/,
a/DT
$/$
1.5/CD
billion/CD
instrument/NN
designed/VBN
to/TO
see/VB
the/DT
faintest/JJS
galaxies/NNS
in/IN
the/DT
universe/NN
./.
Not/RB
all/DT
of/IN
NASA/NNP
's/POS
space-science/NN
work/NN
will/MD
be/VB
so/RB
auspicious/JJ
,/,
though/RB
./.
Around/IN
Thanksgiving/NNP
,/,
the/DT
Solar/NNP
Max/NNP
satellite/NN
,/,
which/WDT
NASA/NNP
repaired/VBD
in/IN
orbit/NN
in/IN
1984/CD
,/,
will/MD
tumble/VB
back/RB
into/IN
the/DT
Earth/NNP
's/POS
atmosphere/NN
./.
NASA/NNP
wo/MD
n't/RB
attempt/VB
a/DT
rescue/NN
;/:
instead/RB
,/,
it/PRP
will/MD
try/VB
to/TO
predict/VB
whether/IN
any/DT
of/IN
the/DT
rubble/NN
will/MD
smash/VB
to/TO
the/DT
ground/NN
and/CC
where/WRB
./.
The/DT
Associated/NNP
Press/NNP
's/POS
earthquake/NN
coverage/NN
drew/VBD
attention/NN
to/TO
a/DT
phenomenon/NN
that/WDT
deserves/VBZ
some/DT
thought/NN
by/IN
public/JJ
officials/NNS
and/CC
other/JJ
policy/NN
makers/NNS
./.
Private/JJ
relief/NN
agencies/NNS
,/,
such/JJ
as/IN
the/DT
Salvation/NNP
Army/NNP
and/CC
Red/NNP
Cross/NNP
,/,
mobilized/VBD
almost/RB
instantly/RB
to/TO
help/VB
people/NNS
,/,
while/IN
the/DT
Washington/NNP
bureaucracy/NN
``/``
took/VBD
hours/NNS
getting/VBG
into/IN
gear/NN
./.
''/''
One/CD
news/NN
show/NN
we/PRP
saw/VBD
yesterday/NN
even/RB
displayed/VBD
25/CD
federal/JJ
officials/NNS
meeting/VBG
around/IN
a/DT
table/NN
./.
We/PRP
recall/VBP
that/IN
the/DT
mayor/NN
of/IN
Charleston/NNP
complained/VBD
bitterly/RB
about/IN
the/DT
federal/JJ
bureaucracy/NN
's/POS
response/NN
to/TO
Hurricane/NNP
Hugo/NNP
./.
The/DT
sense/NN
grows/VBZ
that/IN
modern/JJ
public/JJ
bureaucracies/NNS
simply/RB
do/VBP
n't/RB
perform/VB
their/PRP$
assigned/VBN
functions/NNS
well/RB
./.
Bally/NNP
Manufacturing/NNP
Corp./NNP
and/CC
New/NNP
York/NNP
developer/NN
Donald/NNP
Trump/NNP
have/VBP
agreed/VBN
in/IN
principle/NN
to/TO
a/DT
$/$
6.5/CD
million/CD
settlement/NN
of/IN
shareholder/NN
litigation/NN
stemming/VBG
from/IN
Bally/NNP
's/POS
alleged/VBN
greenmail/NN
payment/NN
to/TO
Mr./NNP
Trump/NNP
./.
According/VBG
to/TO
lawyers/NNS
familiar/JJ
with/IN
the/DT
settlement/NN
talks/NNS
,/,
the/DT
verbal/JJ
agreement/NN
to/TO
end/VB
a/DT
lawsuit/NN
filed/VBN
more/JJR
than/IN
two/CD
years/NNS
ago/RB
was/VBD
reached/VBN
last/JJ
week/NN
and/CC
will/MD
soon/RB
be/VB
submitted/VBN
to/TO
a/DT
federal/JJ
judge/NN
in/IN
Camden/NNP
,/,
N.J/NNP
./.
In/IN
February/NNP
1987/CD
,/,
Bally/NNP
thwarted/VBD
a/DT
possible/JJ
hostile/JJ
takeover/NN
bid/NN
from/IN
Mr./NNP
Trump/NNP
by/IN
agreeing/VBG
to/TO
buy/VB
2.6/CD
million/CD
of/IN
Mr./NNP
Trump/NNP
's/POS
3.1/CD
million/CD
Bally/NNP
shares/NNS
for/IN
$/$
83.7/CD
million/CD
--/:
more/JJR
than/IN
$/$
18/CD
million/CD
above/IN
market/NN
price/NN
./.
The/DT
term/NN
greenmail/NN
refers/VBZ
to/TO
a/DT
situation/NN
where/WRB
a/DT
company/NN
pays/VBZ
a/DT
premium/NN
over/IN
market/NN
value/NN
to/TO
repurchase/VBN
a/DT
stake/NN
held/VBN
by/IN
a/DT
potential/JJ
acquirer/NN
./.
Lawyers/NNS
for/IN
shareholders/NNS
,/,
Bally/NNP
and/CC
Mr./NNP
Trump/NNP
all/DT
declined/VBD
to/TO
talk/VB
publicly/RB
about/IN
the/DT
proposed/VBN
settlement/NN
,/,
citing/VBG
a/DT
request/NN
by/IN
a/DT
federal/JJ
court/NN
magistrate/NN
not/RB
to/TO
reveal/VB
details/NNS
of/IN
the/DT
agreement/NN
until/IN
it/PRP
is/VBZ
completed/VBN
./.
But/CC
some/DT
attorneys/NNS
who/WP
are/VBP
familiar/JJ
with/IN
the/DT
matter/NN
said/VBD
the/DT
$/$
6.5/CD
million/CD
payment/NN
will/MD
be/VB
shared/VBN
by/IN
Bally/NNP
and/CC
Mr./NNP
Trump/NNP
,/,
with/IN
the/DT
casino/NN
and/CC
hotel/NN
concern/NN
probably/RB
paying/VBG
the/DT
bulk/NN
of/IN
the/DT
money/NN
./.
The/DT
amount/NN
Bally/NNP
and/CC
Mr./NNP
Trump/NNP
will/MD
pay/VB
to/TO
settle/VB
the/DT
class-action/JJ
suit/NN
pales/VBZ
in/IN
comparison/NN
to/TO
the/DT
$/$
45/CD
million/CD
Walt/NNP
Disney/NNP
Co./NNP
and/CC
Saul/NNP
Steinberg/NNP
's/POS
Reliance/NNP
Group/NNP
Holdings/NNPS
Inc./NNP
agreed/VBD
to/TO
pay/VB
to/TO
settle/VB
a/DT
similar/JJ
suit/NN
in/IN
July/NNP
./.
That/DT
settlement/NN
represented/VBD
the/DT
first/JJ
time/NN
shareholders/NNS
were/VBD
granted/VBN
a/DT
major/JJ
payment/NN
in/IN
a/DT
greenmail/NN
case/NN
./.
Mr./NNP
Steinberg/NNP
made/VBD
a/DT
$/$
59.7/CD
million/CD
profit/NN
on/IN
the/DT
sale/NN
to/TO
Disney/NNP
of/IN
his/PRP$
investment/NN
in/IN
the/DT
company/NN
in/IN
1984/CD
./.
But/CC
lawyers/NNS
said/VBD
Mr./NNP
Steinberg/NNP
probably/RB
faced/VBD
much/RB
more/RBR
potential/JJ
liability/NN
because/IN
,/,
when/WRB
he/PRP
sued/VBD
Disney/NNP
during/IN
his/PRP$
takeover/NN
battle/NN
,/,
he/PRP
filed/VBD
on/IN
behalf/NN
of/IN
all/DT
shareholders/NNS
./.
When/WRB
Disney/NNP
offered/VBD
to/TO
pay/VB
Mr./NNP
Steinberg/NNP
a/DT
premium/NN
for/IN
his/PRP$
shares/NNS
,/,
the/DT
New/NNP
York/NNP
investor/NN
did/VBD
n't/RB
demand/VB
the/DT
company/NN
also/RB
pay/VB
a/DT
premium/NN
to/TO
other/JJ
shareholders/NNS
./.
When/WRB
Mr./NNP
Trump/NNP
sued/VBD
Bally/NNP
,/,
he/PRP
sued/VBD
only/RB
on/IN
behalf/NN
of/IN
himself/PRP
./.
Mr./NNP
Trump/NNP
and/CC
Bally/NNP
also/RB
appeared/VBD
to/TO
have/VB
some/DT
leverage/NN
in/IN
the/DT
case/NN
because/RB
in/IN
the/DT
state/NN
of/IN
Delaware/NNP
,/,
where/WRB
Bally/NNP
is/VBZ
incorporated/JJ
,/,
courts/NNS
have/VBP
held/VBN
that/DT
greenmail/NN
is/VBZ
often/RB
protected/JJ
by/IN
the/DT
business-judgment/NN
rule/NN
./.
That/DT
rule/NN
gives/VBZ
boards/NNS
of/IN
directors/NNS
wide/JJ
latitude/NN
in/IN
deciding/VBG
how/WRB
to/TO
deal/VB
with/IN
dissident/JJ
shareholders/NNS
./.
SENATE/NNP
HEARS/VBZ
final/JJ
arguments/NNS
in/IN
impeachment/NN
trial/NN
of/IN
federal/JJ
judge/NN
./.
Yesterday/NN
,/,
U.S./NNP
Judge/NNP
Alcee/NNP
Hastings/NNP
faced/VBD
his/PRP$
jury/NN
--/:
the/DT
full/JJ
U.S./NNP
Senate/NNP
--/:
and/CC
said/VBD
,/,
``/``
I/PRP
am/VBP
not/RB
guilty/JJ
of/IN
having/VBG
committed/VBN
any/DT
crime/NN
./.
''/''
Seventeen/CD
articles/NNS
of/IN
impeachment/NN
against/IN
the/DT
Florida/NNP
judge/NN
,/,
one/CD
of/IN
the/DT
few/JJ
blacks/NNS
on/IN
the/DT
U.S./NNP
bench/NN
,/,
were/VBD
approved/VBN
by/IN
the/DT
House/NNP
in/IN
August/NNP
1988/CD
./.
The/DT
central/JJ
charge/NN
against/IN
Judge/NNP
Hastings/NNP
is/VBZ
that/IN
he/PRP
conspired/VBD
with/IN
a/DT
Washington/NNP
lawyer/NN
to/TO
obtain/VB
a/DT
$/$
150,000/CD
bribe/NN
from/IN
defendants/NNS
in/IN
a/DT
criminal/JJ
case/NN
before/IN
the/DT
judge/NN
,/,
in/IN
return/NN
for/IN
leniency/NN
./.
He/PRP
is/VBZ
also/RB
accused/VBN
of/IN
lying/VBG
under/IN
oath/NN
and/CC
of/IN
leaking/VBG
information/NN
obtained/VBN
from/IN
a/DT
wiretap/NN
he/PRP
supervised/VBD
./.
The/DT
Senate/NNP
's/POS
public/JJ
gallery/NN
was/VBD
packed/VBN
with/IN
Judge/NNP
Hastings/NNP
'/POS
supporters/NNS
,/,
who/WP
erupted/VBD
into/IN
applause/NN
after/IN
he/PRP
finished/VBD
his/PRP$
argument/NN
./.
Judge/NNP
Hastings/NNP
,/,
who/WP
was/VBD
acquitted/VBN
of/IN
similar/JJ
charges/NNS
by/IN
a/DT
federal/JJ
jury/NN
in/IN
1983/CD
,/,
claims/VBZ
he/PRP
is/VBZ
being/VBG
victimized/VBN
and/CC
that/IN
the/DT
impeachment/NN
proceedings/NNS
against/IN
him/PRP
constitute/VBP
double/JJ
jeopardy/NN
./.
But/CC
Rep./NNP
John/NNP
Bryant/NNP
D./NNP
,/,
Texas/NNP
the/DT
lead/JJ
counsel/NN
for/IN
the/DT
House/NNP
managers/NNS
who/WP
conducted/VBD
a/DT
lengthy/JJ
inquiry/NN
into/IN
Judge/NNP
Hastings/NNP
'/POS
activities/NNS
,/,
said/VBD
``/``
a/DT
mountain/NN
of/IN
evidence/NN
points/VBZ
to/TO
his/PRP$
certain/JJ
guilt/NN
./.
''/''
The/DT
Senate/NNP
will/MD
deliberate/VB
behind/IN
closed/JJ
doors/NNS
today/NN
and/CC
is/VBZ
scheduled/VBN
to/TO
vote/VB
on/IN
the/DT
impeachment/NN
tomorrow/NN
./.
If/IN
the/DT
judge/NN
is/VBZ
impeached/VBN
,/,
as/IN
is/VBZ
thought/VBN
likely/RB
,/,
he/PRP
will/MD
be/VB
removed/VBN
from/IN
office/NN
immediately/RB
./.
However/RB
,/,
Judge/NNP
Hastings/NNP
has/VBZ
said/VBN
he/PRP
will/MD
continue/VB
to/TO
fight/VB
and/CC
is/VBZ
contemplating/VBG
an/DT
appeal/NN
of/IN
any/DT
impeachment/NN
to/TO
the/DT
U.S./NNP
Supreme/NNP
Court/NNP
./.
COMPANIES/NNS
SEEKING/VBG
to/TO
make/VB
insurers/NNS
pay/VB
for/IN
pollution/NN
cleanup/NN
win/VBP
court/NN
victory/NN
./.
In/IN
a/DT
case/NN
involving/VBG
Avondale/NNP
Industries/NNPS
Inc./NNP
and/CC
its/PRP$
insurer/NN
,/,
Travelers/NNP
Cos./NNPS
,/,
the/DT
Second/NNP
U.S./NNP
Circuit/NNP
Court/NNP
of/IN
Appeals/NNPS
in/IN
New/NNP
York/NNP
ruled/VBD
in/IN
favor/NN
of/IN
the/DT
company/NN
on/IN
two/CD
issues/NNS
that/IN
lawyers/NNS
say/VBP
are/VBP
central/JJ
to/TO
dozens/NNS
of/IN
pollution/NN
cases/NNS
around/IN
the/DT
country/NN
./.
Travelers/NNP
and/CC
other/JJ
insurers/NNS
have/VBP
maintained/VBN
that/IN
cleanup/NN
costs/NNS
are/VBP
n't/RB
damages/NNS
and/CC
thus/RB
are/VBP
n't/RB
covered/VBN
under/IN
commercial/JJ
policies/NNS
./.
They/PRP
also/RB
have/VBP
argued/VBN
that/IN
government/NN
proceedings/NNS
notifying/VBG
a/DT
company/NN
of/IN
potential/JJ
responsibility/NN
do/VBP
n't/RB
fit/VB
the/DT
legal/JJ
definition/NN
of/IN
a/DT
lawsuit/NN
;/:
thus/RB
,/,
such/JJ
governmental/JJ
proceedings/NNS
are/VBP
n't/RB
covered/VBN
by/IN
the/DT
policies/NNS
,/,
the/DT
insurers/NNS
say/VBP
./.
The/DT
appeals/NNS
court/NN
disagreed/VBD
on/IN
both/DT
counts/NNS
./.
Avondale/NNP
was/VBD
notified/VBN
by/IN
Louisiana/NNP
officials/NNS
in/IN
1986/CD
that/IN
it/PRP
was/VBD
potentially/RB
responsible/JJ
for/IN
a/DT
cleanup/NN
at/IN
an/DT
oil-recycling/NN
plant/NN
./.
Avondale/NNP
asked/VBD
Travelers/NNP
to/TO
defend/VB
it/PRP
in/IN
the/DT
state/NN
proceeding/NN
,/,
but/CC
the/DT
insurer/NN
did/VBD
n't/RB
respond/NN
./.
The/DT
appeals/NNS
court/NN
upheld/VBD
a/DT
district/NN
judge/NN
's/POS
ruling/NN
that/IN
the/DT
insurer/NN
had/VBD
to/TO
defend/VB
the/DT
company/NN
in/IN
such/JJ
proceedings/NNS
./.
The/DT
appeals/NNS
court/NN
also/RB
said/VBD
,/,
``/``
We/PRP
think/VBP
an/DT
ordinary/JJ
businessman/NN
reading/VBG
this/DT
policy/NN
would/MD
have/VB
believed/VBN
himself/PRP
covered/JJ
for/IN
the/DT
demands/NNS
and/CC
potential/JJ
damage/NN
claims/NNS
''/''
stemming/VBG
from/IN
any/DT
cleanup/NN
./.
``/``
This/DT
decision/NN
will/MD
have/VB
a/DT
very/RB
considerable/JJ
impact/NN
,/,
''/''
said/VBD
Kenneth/NNP
Abraham/NNP
,/,
professor/NN
of/IN
environmental/JJ
law/NN
and/CC
insurance/NN
law/NN
at/IN
the/DT
University/NNP
of/IN
Virginia/NNP
,/,
because/IN
many/JJ
commercial/JJ
insurance/NN
policies/NNS
are/VBP
issued/VBN
by/IN
companies/NNS
based/VBN
in/IN
New/NNP
York/NNP
./.
William/NNP
Greaney/NNP
,/,
an/DT
attorney/NN
for/IN
the/DT
Chemical/NNP
Manufacturers/NNPS
Association/NNP
,/,
said/VBD
that/IN
while/IN
other/JJ
appeals/NNS
courts/NNS
have/VBP
ruled/VBN
differently/RB
on/IN
whether/IN
cleanup/NN
costs/NNS
are/VBP
damages/NNS
,/,
the/DT
influence/NN
of/IN
the/DT
appeals/NNS
court/NN
in/IN
New/NNP
York/NNP
``/``
will/MD
make/VB
insurers/NNS
sit/VB
up/RB
and/CC
listen/VB
./.
''/''
He/PRP
said/VBD
the/DT
decision/NN
was/VBD
the/DT
first/JJ
in/IN
which/WDT
a/DT
federal/JJ
appeals/NNS
court/NN
has/VBZ
ruled/VBN
whether/IN
administrative/JJ
government/NN
proceedings/NNS
qualify/VBP
as/IN
litigation/NN
./.
Barry/NNP
R./NNP
Ostrager/NNP
,/,
an/DT
attorney/NN
for/IN
Travelers/NNP
,/,
said/VBD
,/,
``/``
there/EX
are/VBP
procedural/JJ
bases/NNS
on/IN
which/WDT
this/DT
case/NN
will/MD
be/VB
appealed/VBN
further/RBR
./.
''/''
NEW/NNP
YORK/NNP
'S/POS
poor/JJ
face/VBP
nearly/RB
three/CD
million/CD
legal/JJ
problems/NNS
a/DT
year/NN
without/IN
legal/JJ
help/NN
./.
That/DT
is/VBZ
the/DT
conclusion/NN
of/IN
a/DT
report/NN
released/VBN
by/IN
the/DT
New/NNP
York/NNP
State/NNP
Bar/NNP
Association/NNP
./.
The/DT
report/NN
was/VBD
based/VBN
on/IN
a/DT
telephone/NN
survey/NN
of/IN
1,250/CD
low-income/JJ
households/NNS
across/IN
the/DT
state/NN
,/,
a/DT
mail/NN
survey/NN
of/IN
major/JJ
legal-services/NNS
programs/NNS
and/CC
on-site/JJ
interviews/NNS
with/IN
individuals/NNS
in/IN
the/DT
field/NN
./.
``/``
The/DT
report/NN
provides/VBZ
detailed/JJ
documentation/NN
of/IN
the/DT
extent/NN
and/CC
nature/NN
of/IN
the/DT
problem/NN
and/CC
indicates/VBZ
how/WRB
we/PRP
may/MD
want/VB
to/TO
shape/VB
solutions/NNS
,/,
''/''
said/VBD
Joseph/NNP
Genova/NNP
,/,
chairman/NN
of/IN
the/DT
committee/NN
that/WDT
oversaw/VB
the/DT
survey/NN
and/CC
a/DT
partner/NN
at/IN
the/DT
law/NN
firm/NN
of/IN
Milbank/NNP
,/,
Tweed/NNP
,/,
Hadley/NNP
&/CC
McCloy/NNP
./.
According/VBG
to/TO
the/DT
study/NN
,/,
slightly/RB
more/JJR
than/IN
34/CD
%/NN
of/IN
those/DT
surveyed/VBN
reported/VBD
having/VBG
at/IN
least/JJS
one/CD
housing/NN
problem/NN
every/DT
year/NN
for/IN
which/WDT
they/PRP
had/VBD
no/DT
legal/JJ
help/NN
./.
Nearly/RB
36/CD
%/NN
ranked/VBD
housing/NN
problems/NNS
as/IN
their/PRP$
most/RBS
serious/JJ
unmet/JJ
legal/JJ
need/NN
./.
Other/JJ
areas/NNS
targeted/VBN
by/IN
the/DT
survey/NN
's/POS
respondents/NNS
included/VBD
difficulty/NN
obtaining/VBG
or/CC
maintaining/VBG
public/JJ
benefits/NNS
22/CD
%/NN
consumer/NN
fraud/NN
15.4/CD
%/NN
health-care/NN
issues/NNS
15/CD
%/NN
During/IN
the/DT
15-month/JJ
survey/NN
,/,
43/CD
%/NN
of/IN
all/DT
legal-services/NNS
programs/NNS
said/VBD
that/IN
at/IN
some/DT
period/NN
they/PRP
were/VBD
unable/JJ
to/TO
accept/VB
new/JJ
clients/NNS
unless/IN
they/PRP
had/VBD
an/DT
emergency/NN
./.
Mr./NNP
Genova/NNP
said/VBD
the/DT
committee/NN
may/MD
meet/VB
to/TO
propose/VB
solutions/NNS
to/TO
the/DT
problems/NNS
identified/VBN
in/IN
the/DT
study/NN
./.
PROSECUTOR/NN
TO/TO
JOIN/VB
Gibson/NNP
Dunn/NNP
:/:
Assistant/NNP
U.S./NNP
Attorney/NNP
Randy/NNP
Mastro/NNP
,/,
who/WP
headed/VBD
the/DT
government/NN
's/POS
racketeering/NN
case/NN
against/IN
the/DT
International/NNP
Brotherhood/NNP
of/IN
Teamsters/NNPS
,/,
will/MD
join/VB
Gibson/NNP
,/,
Dunn/NNP
&/CC
Crutcher/NNP
in/IN
its/PRP$
New/NNP
York/NNP
office/NN
./.
Mr./NNP
Mastro/NNP
has/VBZ
been/VBN
with/IN
the/DT
New/NNP
York/NNP
U.S./NNP
attorney/NN
's/POS
office/NN
for/IN
nearly/RB
five/CD
years/NNS
./.
In/IN
1987/CD
he/PRP
became/VBD
deputy/NN
chief/NN
of/IN
the/DT
civil/JJ
division/NN
./.
Mr./NNP
Mastro/NNP
will/MD
do/VB
civil/JJ
litigation/NN
and/CC
white-collar/JJ
defense/NN
work/NN
for/IN
Gibson/NNP
Dunn/NNP
,/,
which/WDT
is/VBZ
based/VBN
in/IN
Los/NNP
Angeles/NNP
./.
FORMER/JJ
APPLE/NNP
COMPUTER/NNP
Inc./NNP
general/JJ
counsel/NN
John/NNP
P./NNP
Karalis/NNP
has/VBZ
joined/VBN
the/DT
Phoenix/NNP
,/,
Ariz./NNP
,/,
law/NN
firm/NN
of/IN
Brown/NNP
&/CC
Bain/NNP
./.
Mr./NNP
Karalis/NNP
,/,
51/CD
,/,
will/MD
specialize/VB
in/IN
corporate/JJ
law/NN
and/CC
international/JJ
law/NN
at/IN
the/DT
110-lawyer/JJ
firm/NN
./.
Before/IN
joining/VBG
Apple/NNP
in/IN
1986/CD
,/,
Mr./NNP
Karalis/NNP
served/VBD
as/IN
general/JJ
counsel/NN
at/IN
Sperry/NNP
Corp/NNP
./.
After/IN
failing/VBG
to/TO
find/VB
a/DT
buyer/NN
for/IN
the/DT
Sears/NNP
Tower/NNP
in/IN
Chicago/NNP
,/,
Sears/NNP
,/,
Roebuck/NNP
&/CC
Co./NNP
is/VBZ
negotiating/VBG
with/IN
Boston/NNP
pension/NN
fund/NN
adviser/NN
Aldrich/NNP
,/,
Eastman/NNP
&/CC
Waltch/NNP
Inc./NNP
to/TO
refinance/VB
the/DT
property/NN
for/IN
close/JJ
to/TO
$/$
850/CD
million/CD
,/,
according/VBG
to/TO
people/NNS
close/JJ
to/TO
the/DT
negotiations/NNS
./.
Under/IN
the/DT
proposed/VBN
agreement/NN
involving/VBG
the/DT
world/NN
's/POS
tallest/JJS
building/NN
,/,
Chicago-based/JJ
Sears/NNP
would/MD
receive/VB
about/IN
half/PDT
the/DT
money/NN
through/IN
conventional/JJ
mortgage/NN
financing/NN
and/CC
the/DT
other/JJ
half/NN
as/IN
a/DT
convertible/JJ
mortgage/NN
./.
At/IN
the/DT
end/NN
of/IN
the/DT
term/NN
of/IN
the/DT
convertible/JJ
loan/NN
,/,
Sears/NNP
could/MD
still/RB
own/VB
half/PDT
the/DT
building/NN
,/,
and/CC
AEW/NNP
could/MD
own/VB
the/DT
other/JJ
half/NN
./.
Neither/DT
side/NN
would/MD
comment/VB
./.
The/DT
parties/NNS
are/VBP
currently/RB
negotiating/VBG
over/IN
who/WP
would/MD
manage/VB
the/DT
building/NN
,/,
which/WDT
will/MD
be/VB
emptied/VBN
of/IN
6,000/CD
employees/NNS
from/IN
Sears/NNP
'/POS
merchandise/NN
group/NN
,/,
which/WDT
is/VBZ
moving/VBG
elsewhere/RB
./.
The/DT
new/JJ
manager/NN
will/MD
face/VB
the/DT
daunting/JJ
task/NN
of/IN
leasing/VBG
1.8/CD
million/CD
square/JJ
feet/NNS
in/IN
a/DT
relatively/RB
soft/JJ
Chicago/NNP
real/JJ
estate/NN
market/NN
./.
Also/RB
,/,
it/PRP
has/VBZ
not/RB
yet/RB
been/VBN
decided/VBN
exactly/RB
how/WRB
much/RB
of/IN
the/DT
mortgage/NN
AEW/NNP
will/MD
be/VB
able/JJ
to/TO
convert/VB
into/IN
equity/NN
./.
Convertible/JJ
mortgages/NNS
have/VBP
become/VBN
an/DT
increasingly/RB
popular/JJ
way/NN
to/TO
finance/VB
prestigious/JJ
buildings/NNS
of/IN
late/RB
./.
In/IN
a/DT
convertible/JJ
mortgage/NN
,/,
the/DT
investor/NN
lends/VBZ
the/DT
building/NN
owner/NN
a/DT
certain/JJ
amount/NN
in/IN
return/NN
for/IN
the/DT
option/NN
to/TO
convert/VB
its/PRP$
interest/NN
into/IN
equity/NN
,/,
usually/RB
less/JJR
than/IN
50/CD
%/NN
,/,
at/IN
the/DT
end/NN
of/IN
the/DT
loan/NN
term/NN
./.
During/IN
the/DT
term/NN
,/,
the/DT
lender/NN
can/MD
either/RB
receive/VB
a/DT
percentage/NN
of/IN
cash/NN
flow/NN
,/,
a/DT
percentage/NN
of/IN
the/DT
building/NN
's/POS
appreciation/NN
or/CC
a/DT
fixed/JJ
return/NN
./.
The/DT
main/JJ
advantage/NN
of/IN
a/DT
convertible/JJ
mortgage/NN
is/VBZ
that/IN
it/PRP
is/VBZ
not/RB
a/DT
sale/NN
and/CC
therefore/RB
does/VBZ
not/RB
trigger/VB
costly/JJ
transfer/NN
taxes/NNS
and/CC
reappraisal/NN
./.
Sears/NNS
said/VBD
it/PRP
would/MD
put/VB
the/DT
110-story/JJ
tower/NN
on/IN
the/DT
block/NN
almost/RB
a/DT
year/NN
ago/RB
as/IN
part/NN
of/IN
its/PRP$
anti-takeover/JJ
restructuring/NN
./.
But/CC
Japanese/JJ
institutions/NNS
shied/VBD
away/RB
from/IN
bidding/NN
on/IN
the/DT
high-profile/JJ
tower/NN
out/IN
of/IN
fear/NN
their/PRP$
purchase/NN
of/IN
the/DT
property/NN
would/MD
trigger/VB
anti-Japanese/JJ
sentiment/NN
./.
Last/JJ
summer/NN
,/,
Sears/NNP
appeared/VBD
to/TO
have/VB
a/DT
deal/NN
with/IN
Canadian/JJ
developer/NN
Olympia/NNP
&/CC
York/NNP
Developments/NNPS
Ltd/NNP
./.
But/CC
that/DT
deal/NN
fell/VBD
through/RB
in/IN
September/NNP
after/IN
it/PRP
became/VBD
clear/JJ
that/IN
the/DT
sale/NN
would/MD
lead/VB
to/TO
a/DT
major/JJ
real/JJ
estate/NN
tax/NN
reassessment/NN
,/,
raising/VBG
property/NN
taxes/NNS
,/,
and/CC
making/VBG
it/PRP
difficult/JJ
to/TO
lease/VB
the/DT
building/NN
at/IN
competitive/JJ
prices/NNS
./.
Real/JJ
estate/NN
industry/NN
executives/NNS
said/VBD
Sears/NNP
'/POS
investment/NN
banker/NN
,/,
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
,/,
sought/VBD
financing/NN
in/IN
Japan/NNP
./.
However/RB
,/,
Japanese/JJ
authorities/NNS
apparently/RB
were/VBD
concerned/VBN
that/IN
a/DT
refinancing/NN
also/RB
would/MD
attract/VB
too/RB
much/JJ
publicity/NN
./.
Sears/NNP
then/RB
went/VBD
back/RB
to/TO
AEW/NNP
,/,
the/DT
Boston/NNP
pension/NN
adviser/NN
that/WDT
had/VBD
proposed/VBN
a/DT
convertible/JJ
debt/NN
deal/NN
during/IN
the/DT
first/JJ
round/NN
of/IN
bids/NNS
last/JJ
spring/NN
./.
AEW/NNP
has/VBZ
$/$
3.5/CD
billion/CD
of/IN
real/JJ
estate/NN
investments/NNS
nationwide/RB
,/,
according/VBG
to/TO
a/DT
spokesman/NN
./.
Tandy/NNP
Corp./NNP
said/VBD
it/PRP
signed/VBD
a/DT
definitive/JJ
agreement/NN
to/TO
acquire/VB
two/CD
units/NNS
of/IN
Datatronic/NNP
AB/NNP
of/IN
Stockholm/NNP
for/IN
cash/NN
./.
The/DT
amount/NN
was/VBD
n't/RB
disclosed/VBN
./.
The/DT
electronics/NNS
maker/NN
and/CC
retailer/NN
previously/RB
estimated/VBD
the/DT
sale/NN
price/NN
at/IN
between/IN
$/$
100/CD
million/CD
and/CC
$/$
200/CD
million/CD
for/IN
Datatronic/NNP
's/POS
Victor/NNP
microcomputer/NN
and/CC
Micronic/NNP
hand-held/JJ
computer/NN
subsidiaries/NNS
./.
In/IN
addition/NN
,/,
Tandy/NNP
will/MD
acquire/VB
rights/NNS
to/TO
the/DT
Victor/NNP
and/CC
Micronic/NNP
names/NNS
for/IN
computers/NNS
./.
During/IN
1988/CD
,/,
the/DT
Datatronic/NNP
subsidiaries/NNS
had/VBD
combined/VBN
sales/NNS
in/IN
excess/NN
of/IN
$/$
200/CD
million/CD
./.
The/DT
transaction/NN
will/MD
give/VB
Tandy/VB
a/DT
well-known/JJ
European/JJ
computer/NN
brand/NN
that/WDT
includes/VBZ
2,700/CD
dealers/NNS
and/CC
distributors/NNS
marketing/VBG
to/TO
medium-sized/JJ
business/NN
and/CC
educational/JJ
institutions/NNS
./.
Closing/NN
of/IN
the/DT
transaction/NN
is/VBZ
subject/JJ
to/TO
certain/JJ
conditions/NNS
and/CC
regulatory/JJ
approvals/NNS
,/,
the/DT
company/NN
said/VBD
./.
Two/CD
rules/NNS
in/IN
pending/VBG
congressional/JJ
legislation/NN
threaten/VBP
to/TO
hinder/VB
leveraged/JJ
buy-outs/NNS
by/IN
raising/VBG
the/DT
price/NN
tags/NNS
of/IN
such/JJ
deals/NNS
by/IN
as/RB
much/JJ
as/IN
10/CD
%/NN
./.
Wall/NNP
Street/NNP
is/VBZ
seething/VBG
over/IN
the/DT
rules/NNS
,/,
which/WDT
would/MD
curtail/VB
the/DT
tax/NN
deductibility/NN
of/IN
debt/NN
used/VBN
in/IN
most/JJS
LBOs/NNS
./.
The/DT
provisions/NNS
,/,
in/IN
deficit-reduction/NN
bills/NNS
recently/RB
passed/VBN
by/IN
the/DT
House/NNP
and/CC
Senate/NNP
,/,
could/MD
further/RBR
cool/VB
the/DT
takeover/NN
boom/NN
that/WDT
has/VBZ
been/VBN
the/DT
driving/VBG
force/NN
behind/IN
the/DT
bull/NN
market/NN
in/IN
stocks/NNS
for/IN
much/RB
of/IN
the/DT
1980s/NNS
,/,
some/DT
tax/NN
experts/NNS
and/CC
investment/NN
bankers/NNS
argue/VBP
./.
Indeed/RB
,/,
some/DT
investment/NN
bankers/NNS
have/VBP
already/RB
started/VBN
restructuring/NN
deals/NNS
to/TO
cope/VB
with/IN
the/DT
expected/JJ
rules/NNS
./.
Wall/NNP
Street/NNP
has/VBZ
all/DT
but/CC
conceded/VBD
on/IN
the/DT
issue/NN
and/CC
is/VBZ
now/RB
lobbying/VBG
for/IN
the/DT
less/RBR
onerous/JJ
Senate/NNP
version/NN
of/IN
one/CD
of/IN
the/DT
provisions/NNS
./.
At/IN
issue/NN
is/VBZ
the/DT
deductibility/NN
of/IN
certain/JJ
junk/NN
bonds/NNS
that/WDT
are/VBP
used/VBN
in/IN
most/JJS
LBOs/NNS
./.
Such/JJ
high-yield/JJ
debt/NN
is/VBZ
similar/JJ
to/TO
a/DT
zero-coupon/NN
bond/NN
in/IN
that/IN
it/PRP
is/VBZ
sold/VBN
at/IN
a/DT
discount/NN
to/TO
face/NN
value/NN
,/,
with/IN
interest/NN
accruing/VBG
instead/RB
of/IN
being/VBG
paid/VBN
to/TO
the/DT
holder/NN
./.
Under/IN
current/JJ
rules/NNS
,/,
that/DT
accrued/VBN
interest/NN
is/VBZ
deductible/JJ
by/IN
the/DT
company/NN
issuing/VBG
the/DT
debt/NN
./.
The/DT
House/NNP
version/NN
of/IN
the/DT
legislation/NN
would/MD
kill/VB
that/DT
deduction/NN
,/,
and/CC
label/VB
any/DT
such/JJ
debt/NN
as/IN
equity/NN
,/,
which/WDT
is/VBZ
n't/RB
deductible/JJ
./.
The/DT
less-rigorous/JJR
Senate/NNP
version/NN
would/MD
defer/VB
the/DT
deductibility/NN
for/IN
roughly/RB
five/CD
years/NNS
./.
``/``
You/PRP
see/VBP
these/DT
in/IN
just/RB
about/IN
every/DT
LBO/NN
,/,
''/''
said/VBD
Robert/NNP
Willens/NNP
,/,
senior/JJ
vice/NN
president/NN
in/IN
charge/NN
of/IN
tax/NN
issues/NNS
at/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
in/IN
New/NNP
York/NNP
./.
``/``
It/PRP
becomes/VBZ
a/DT
source/NN
of/IN
cash/NN
''/''
for/IN
the/DT
company/NN
making/VBG
the/DT
LBO/NN
because/IN
it/PRP
gets/VBZ
a/DT
deduction/NN
and/CC
does/VBZ
n't/RB
have/VB
to/TO
repay/VB
the/DT
debt/NN
for/IN
several/JJ
years/NNS
./.
Typically/RB
,/,
Mr./NNP
Willens/NNP
estimates/VBZ
,/,
this/DT
type/NN
of/IN
debt/NN
makes/VBZ
up/IN
15/CD
%/NN
to/TO
20/CD
%/NN
of/IN
the/DT
financing/NN
for/IN
LBOs/NNS
./.
These/DT
types/NNS
of/IN
bonds/NNS
have/VBP
been/VBN
used/VBN
in/IN
buy-outs/NNS
of/IN
companies/NNS
such/JJ
as/IN
RJR/NNP
Nabisco/NNP
Inc./NNP
,/,
Storer/NNP
Communications/NNPS
Inc./NNP
and/CC
Kroger/NNP
Co/NNP
./.
A/DT
second/JJ
provision/NN
passed/VBN
by/IN
the/DT
Senate/NNP
and/CC
House/NNP
would/MD
eliminate/VB
a/DT
rule/NN
allowing/VBG
companies/NNS
that/IN
post/NN
losses/NNS
resulting/VBG
from/IN
LBO/NN
debt/NN
to/TO
receive/VB
refunds/NNS
of/IN
taxes/NNS
paid/VBN
over/IN
the/DT
previous/JJ
three/CD
years/NNS
./.
For/IN
example/NN
,/,
if/IN
a/DT
company/NN
posted/VBD
a/DT
loss/NN
of/IN
$/$
100/CD
million/CD
from/IN
buy-out/NN
interest/NN
payments/NNS
,/,
the/DT
existing/VBG
rule/NN
would/MD
allow/VB
the/DT
concern/NN
to/TO
be/VB
able/JJ
to/TO
receive/VB
a/DT
refund/NN
from/IN
the/DT
tax/NN
it/PRP
paid/VBD
from/IN
1986/CD
through/IN
1989/CD
,/,
when/WRB
it/PRP
may/MD
have/VB
been/VBN
a/DT
profitable/JJ
public/JJ
company/NN
./.
But/CC
that/DT
rule/NN
is/VBZ
being/VBG
virtually/RB
overlooked/VBN
by/IN
Wall/NNP
Street/NNP
,/,
which/WDT
is/VBZ
concentrating/VBG
on/IN
coping/VBG
with/IN
the/DT
deduction/NN
issue/NN
./.
``/``
Prices/NNS
for/IN
LBOs/NNS
have/VBP
to/TO
come/VB
down/RB
if/IN
you/PRP
do/VBP
n't/RB
have/VB
that/DT
feature/NN
,/,
''/''
argued/VBD
Lawrence/NNP
Schloss/NNP
,/,
managing/NN
director/NN
for/IN
merchant/NN
banking/NN
at/IN
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
Securities/NNPS
Corp./NNP
in/IN
New/NNP
York/NNP
./.
Several/JJ
Wall/NNP
Street/NNP
officials/NNS
say/VBP
the/DT
proposed/VBN
legislation/NN
already/RB
is/VBZ
having/VBG
an/DT
impact/NN
./.
An/DT
investment/NN
group/NN
led/VBN
by/IN
Chicago/NNP
's/POS
Pritzker/NNP
family/NN
recently/RB
lowered/VBD
a/DT
$/$
3.35/CD
billion/CD
bid/NN
for/IN
American/NNP
Medical/NNP
International/NNP
,/,
Beverly/NNP
Hills/NNPS
,/,
Calif./NNP
,/,
because/IN
of/IN
the/DT
threat/NN
of/IN
the/DT
legislation/NN
./.
Moreover/RB
,/,
one/CD
investment/NN
banker/NN
,/,
who/WP
requested/VBD
anonymity/NN
,/,
said/VBD
his/PRP$
firm/NN
did/VBD
n't/RB
raise/VB
the/DT
ante/NN
for/IN
a/DT
target/NN
company/NN
earlier/RB
this/DT
month/NN
after/IN
a/DT
stronger/JJR
bid/NN
emerged/VBD
from/IN
a/DT
public/JJ
company/NN
that/IN
was/VBD
n't/RB
concerned/JJ
about/IN
the/DT
financing/NN
provision/NN
./.
``/``
We/PRP
would/MD
have/VB
paid/VBN
more/JJR
if/IN
we/PRP
thought/VBD
that/DT
law/NN
was/VBD
n't/RB
going/VBG
to/TO
pass/VB
,/,
''/''
he/PRP
said/VBD
./.
One/CD
possible/JJ
solution/NN
for/IN
Wall/NNP
Street/NNP
is/VBZ
to/TO
increase/VB
the/DT
equity/NN
part/NN
of/IN
the/DT
transaction/NN
--/:
that/DT
is/VBZ
,/,
give/VB
lenders/NNS
a/DT
bigger/JJR
stake/NN
in/IN
the/DT
surviving/VBG
company/NN
rather/RB
than/IN
just/RB
interest/NN
payments/NNS
./.
That/DT
would/MD
force/VB
the/DT
buy-out/NN
firm/NN
and/CC
the/DT
target/NN
company/NN
's/POS
management/NN
to/TO
reduce/VB
their/PRP$
level/NN
of/IN
ownership/NN
./.
``/``
The/DT
pigs/NNS
in/IN
the/DT
trough/NN
may/MD
have/VB
to/TO
give/VB
a/DT
little/JJ
bit/NN
of/IN
the/DT
slop/NN
back/RB
and/CC
then/RB
the/DT
deal/NN
can/MD
go/VB
through/RB
,/,
''/''
said/VBD
Peter/NNP
C./NNP
Canellos/NNP
,/,
tax/NN
partner/NN
at/IN
Wachtell/NNP
,/,
Lipton/NNP
,/,
Rosen/NNP
&/CC
Katz/NNP
./.
Another/DT
solution/NN
,/,
said/VBD
a/DT
tax/NN
lawyer/NN
who/WP
requested/VBD
anonymity/NN
,/,
is/VBZ
for/IN
firms/NNS
to/TO
use/VB
convertible/JJ
bonds/NNS
that/WDT
sell/VBP
at/IN
a/DT
discount/NN
./.
Since/IN
they/PRP
have/VBP
a/DT
lower/JJR
interest/NN
rate/NN
,/,
they/PRP
would/MD
n't/RB
fall/VB
under/IN
the/DT
junk-bond/NN
category/NN
that/WDT
would/MD
lose/VB
its/PRP$
deductibility/NN
./.
The/DT
House/NNP
version/NN
of/IN
the/DT
bill/NN
would/MD
make/VB
debt/NN
non-deductible/JJ
if/IN
it/PRP
pays/VBZ
five/CD
percentage/NN
points/NNS
above/IN
Treasury/NNP
notes/NNS
,/,
has/VBZ
at/IN
least/JJS
a/DT
five-year/JJ
maturity/NN
and/CC
does/VBZ
n't/RB
pay/VB
interest/NN
for/IN
at/IN
least/JJS
one/CD
year/NN
out/IN
of/IN
the/DT
first/JJ
five/CD
./.
The/DT
bill/NN
would/MD
then/RB
declare/VB
that/IN
the/DT
debt/NN
is/VBZ
equity/NN
and/CC
therefore/RB
is/VBZ
n't/RB
deductible/JJ
./.
The/DT
Senate/NNP
bill/NN
would/MD
only/RB
deny/VB
the/DT
deduction/NN
until/IN
interest/NN
is/VBZ
actually/RB
paid/VBN
./.
Currently/RB
,/,
even/RB
though/IN
the/DT
issuer/NN
does/VBZ
n't/RB
pay/VB
tax/NN
,/,
the/DT
debt/NN
holder/NN
is/VBZ
taxed/VBN
on/IN
the/DT
accrued/VBN
interest/NN
./.
But/CC
those/DT
holders/NNS
are/VBP
often/RB
foreign/JJ
investors/NNS
and/CC
tax-exempt/JJ
pension/NN
funds/NNS
that/WDT
do/VBP
n't/RB
pay/VB
taxes/NNS
on/IN
their/PRP$
holdings/NNS
./.
The/DT
Senate/NNP
estimates/VBZ
that/IN
its/PRP$
version/NN
of/IN
the/DT
provision/NN
would/MD
yield/VB
$/$
17/CD
million/CD
the/DT
first/JJ
year/NN
and/CC
a/DT
total/NN
of/IN
$/$
409/CD
million/CD
over/IN
five/CD
years/NNS
./.
The/DT
House/NNP
version/NN
would/MD
raise/VB
slightly/RB
more/JJR
./.
Even/RB
if/IN
Wall/NNP
Street/NNP
finds/VBZ
ways/NNS
around/IN
the/DT
new/JJ
rules/NNS
,/,
a/DT
Senate/NNP
aide/NN
contends/VBZ
LBOs/NNS
will/MD
become/VB
somewhat/RB
more/RBR
difficult/JJ
./.
``/``
There/EX
's/VBZ
no/DT
question/NN
it/PRP
will/MD
make/VB
LBOs/NNS
more/RBR
expensive/JJ
,/,
''/''
he/PRP
said/VBD
./.
``/``
The/DT
interest/NN
deduction/NN
was/VBD
the/DT
engine/NN
that/WDT
made/VBD
these/DT
things/NNS
more/RBR
productive/JJ
./.
''/''
The/DT
average/NN
publicly/RB
offered/VBN
commodity/NN
fund/NN
fell/VBD
4.2/CD
%/NN
in/IN
September/NNP
,/,
largely/RB
because/IN
of/IN
the/DT
volatile/JJ
markets/NNS
in/IN
foreign/JJ
currencies/NNS
,/,
according/VBG
to/TO
Norwood/NNP
Securities/NNPS
./.
The/DT
firm/NN
said/VBD
that/IN
losers/NNS
outnumbered/VBD
gainers/NNS
by/IN
more/JJR
than/IN
three/CD
to/TO
one/CD
among/IN
the/DT
122/CD
funds/NNS
it/PRP
tracks/VBZ
./.
For/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
the/DT
year/NN
,/,
Norwood/NNP
said/VBD
the/DT
average/JJ
fund/NN
has/VBZ
lost/VBN
3.3/CD
%/NN
./.
The/DT
government/NN
moved/VBD
aggressively/RB
to/TO
open/VB
the/DT
spigots/NNS
of/IN
federal/JJ
aid/NN
for/IN
victims/NNS
of/IN
the/DT
California/NNP
earthquake/NN
,/,
but/CC
its/PRP$
reservoir/NN
of/IN
emergency/NN
funds/NNS
must/MD
be/VB
replenished/VBN
soon/RB
if/IN
the/DT
aid/NN
is/VBZ
to/TO
continue/VB
./.
President/NNP
Bush/NNP
signed/VBD
a/DT
disaster/NN
declaration/NN
covering/VBG
seven/CD
Northern/JJ
California/NNP
counties/NNS
./.
The/DT
declaration/NN
immediately/RB
made/VBD
the/DT
counties/NNS
eligible/JJ
for/IN
temporary/JJ
housing/NN
,/,
grants/NNS
and/CC
low-cost/JJ
loans/NNS
to/TO
cover/VB
uninsured/JJ
property/NN
losses/NNS
./.
In/IN
addition/NN
,/,
an/DT
unusually/RB
wide/JJ
array/NN
of/IN
federal/JJ
agencies/NNS
moved/VBD
to/TO
provide/VB
specialized/JJ
assistance/NN
./.
The/DT
Department/NNP
of/IN
Housing/NNP
and/CC
Urban/NNP
Development/NNP
prepared/VBD
to/TO
make/VB
as/RB
many/JJ
as/IN
100/CD
vacant/JJ
houses/NNS
available/JJ
for/IN
those/DT
left/VBN
homeless/JJ
,/,
the/DT
Agriculture/NNP
Department/NNP
was/VBD
set/VBN
to/TO
divert/VB
food/NN
from/IN
the/DT
school-lunch/NN
program/NN
to/TO
earthquake/NN
victims/NNS
,/,
and/CC
the/DT
Pentagon/NNP
was/VBD
providing/VBG
everything/NN
from/IN
radio/NN
communications/NNS
to/TO
blood/NN
transfusions/NNS
to/TO
military/JJ
police/NNS
for/IN
directing/VBG
traffic/NN
./.
But/CC
the/DT
pool/NN
of/IN
federal/JJ
emergency-relief/NN
funds/NNS
already/RB
is/VBZ
running/VBG
low/RB
because/IN
of/IN
the/DT
heavy/JJ
costs/NNS
of/IN
cleaning/VBG
up/RP
Hurricane/NNP
Hugo/NNP
,/,
and/CC
Congress/NNP
will/MD
be/VB
under/IN
pressure/NN
to/TO
allocate/VB
more/JJR
money/NN
quickly/RB
./.
In/IN
Hugo/NNP
's/POS
wake/NN
,/,
Congress/NNP
allocated/VBD
$/$
1.1/CD
billion/CD
in/IN
relief/NN
funds/NNS
,/,
and/CC
White/NNP
House/NNP
spokesman/NN
Marlin/NNP
Fitzwater/NNP
said/VBD
$/$
273/CD
million/CD
of/IN
that/DT
money/NN
remains/VBZ
and/CC
could/MD
be/VB
diverted/VBN
for/IN
quick/JJ
expenditures/NNS
related/VBN
to/TO
the/DT
earthquake/NN
./.
Now/RB
,/,
though/RB
,/,
enormous/JJ
costs/NNS
for/IN
earthquake/NN
relief/NN
will/MD
pile/VB
on/IN
top/NN
of/IN
outstanding/JJ
costs/NNS
for/IN
hurricane/NN
relief/NN
./.
``/``
That/DT
obviously/RB
means/VBZ
that/IN
we/PRP
wo/MD
n't/RB
have/VB
enough/RB
for/IN
all/DT
of/IN
the/DT
emergencies/NNS
that/WDT
are/VBP
now/RB
facing/VBG
us/PRP
,/,
and/CC
we/PRP
will/MD
have/VB
to/TO
consider/VB
appropriate/JJ
requests/NNS
for/IN
follow-on/JJ
funding/NN
,/,
''/''
Mr./NNP
Fitzwater/NNP
said/VBD
./.
The/DT
federal/JJ
government/NN
is/VBZ
n't/RB
even/RB
attempting/VBG
yet/RB
to/TO
estimate/VB
how/WRB
much/JJ
the/DT
earthquake/NN
will/MD
cost/VB
it/PRP
./.
But/CC
Mr./NNP
Fitzwater/NNP
said/VBD
,/,
``/``
There/EX
will/MD
be/VB
,/,
I/PRP
think/VBP
quite/RB
obviously/RB
,/,
a/DT
very/RB
large/JJ
amount/NN
of/IN
money/NN
required/VBN
from/IN
all/DT
levels/NNS
of/IN
government/NN
./.
''/''
In/IN
Congress/NNP
,/,
lawmakers/NNS
already/RB
are/VBP
looking/VBG
for/IN
ways/NNS
to/TO
add/VB
relief/NN
funds/NNS
./.
Money/NN
could/MD
be/VB
added/VBN
to/TO
a/DT
pending/VBG
spending/NN
bill/NN
covering/VBG
the/DT
Federal/NNP
Emergency/NNP
Management/NNP
Agency/NNP
,/,
which/WDT
coordinates/VBZ
federal/JJ
disaster/NN
relief/NN
./.
More/RBR
likely/JJ
,/,
relief/NN
funds/NNS
could/MD
be/VB
added/VBN
to/TO
an/DT
omnibus/JJ
spending/NN
bill/NN
that/IN
Congress/NNP
is/VBZ
to/TO
begin/VB
considering/VBG
next/JJ
week/NN
./.
But/CC
it/PRP
is/VBZ
n't/RB
just/RB
Washington/NNP
's/POS
relief/NN
dollars/NNS
that/WDT
are/VBP
spread/VBN
thin/RB
;/:
its/PRP$
relief/NN
manpower/NN
also/RB
is/VBZ
stretched/VBN
./.
FEMA/NNP
still/RB
has/VBZ
special/JJ
disaster/NN
centers/NNS
open/RB
to/TO
handle/VB
the/DT
aftermath/NN
of/IN
Hugo/NNP
,/,
and/CC
spokesman/NN
Russell/NNP
Clanahan/NNP
acknowledged/VBD
that/IN
``/``
we/PRP
're/VBP
pretty/RB
thin/JJ
./.
''/''
Mr./NNP
Clanahan/NNP
says/VBZ
FEMA/NNP
now/RB
possibly/RB
may/MD
have/VB
the/DT
heaviest/JJS
caseload/NN
in/IN
its/PRP$
history/NN
./.
To/TO
further/RBR
complicate/VB
relief/NN
efforts/NNS
,/,
the/DT
privately/RB
funded/JJ
American/NNP
Red/NNP
Cross/NNP
also/RB
finds/VBZ
itself/PRP
strapped/VBN
for/IN
funds/NNS
after/IN
its/PRP$
big/JJ
Hugo/NNP
operation/NN
./.
``/``
It/PRP
's/VBZ
been/VBN
a/DT
bad/JJ
month/NN
money-wise/JJ
and/CC
every/DT
other/JJ
way/NN
,/,
''/''
said/VBD
Sally/NNP
Stewart/NNP
,/,
a/DT
spokeswoman/NN
for/IN
the/DT
Red/NNP
Cross/NNP
./.
``/``
It/PRP
just/RB
makes/VBZ
it/PRP
a/DT
little/RB
rough/JJ
when/WRB
you/PRP
have/VBP
to/TO
worry/VB
about/IN
the/DT
budget/NN
./.
''/''
The/DT
Red/NNP
Cross/NNP
has/VBZ
opened/VBN
30/CD
shelters/NNS
in/IN
the/DT
Bay/NNP
area/NN
,/,
serving/VBG
5,000/CD
people/NNS
./.
Twenty-five/CD
trucks/NNS
capable/JJ
of/IN
cooking/VBG
food/NN
were/VBD
dispatched/VBN
from/IN
other/JJ
states/NNS
./.
All/PDT
the/DT
precise/JJ
types/NNS
of/IN
federal/JJ
aid/NN
that/WDT
will/MD
be/VB
sent/VBN
to/TO
California/NNP
wo/MD
n't/RB
be/VB
determined/VBN
until/IN
state/NN
officials/NNS
make/VBP
specific/JJ
requests/NNS
to/TO
FEMA/NNP
,/,
agency/NN
officials/NNS
said/VBD
./.
And/CC
in/IN
the/DT
confusion/NN
after/IN
the/DT
earthquake/NN
,/,
``/``
the/DT
information/NN
flow/NN
is/VBZ
a/DT
little/RB
slow/JJ
coming/VBG
in/RB
from/IN
the/DT
affected/JJ
area/NN
,/,
''/''
said/VBD
Carl/NNP
Suchocki/NNP
,/,
a/DT
FEMA/NNP
spokesman/NN
./.
Still/RB
,/,
some/DT
aid/NN
is/VBZ
moving/VBG
westward/RB
from/IN
Washington/NNP
almost/RB
immediately/RB
./.
HUD/NNP
officials/NNS
said/VBD
they/PRP
will/MD
make/VB
available/JJ
as/RB
many/JJ
as/IN
100/CD
Bay/NNP
area/NN
houses/NNS
that/WDT
are/VBP
under/IN
HUD/NNP
loans/NNS
but/CC
now/RB
are/VBP
vacant/JJ
after/IN
the/DT
houses/NNS
have/VBP
been/VBN
inspected/VBN
to/TO
ensure/VB
they/PRP
are/VBP
sound/JJ
./.
Additional/JJ
housing/NN
vouchers/NNS
and/CC
certificates/NNS
will/MD
be/VB
made/VBN
available/JJ
,/,
officials/NNS
said/VBD
,/,
and/CC
some/DT
housing/NN
and/CC
community-development/NN
funds/NNS
may/MD
be/VB
shifted/VBN
from/IN
other/JJ
programs/NNS
or/CC
made/VBN
available/JJ
for/IN
emergency/NN
use/NN
./.
Another/DT
federal/JJ
agency/NN
not/RB
normally/RB
associated/VBN
with/IN
disaster/NN
relief/NN
--/:
the/DT
Internal/NNP
Revenue/NNP
Service/NNP
--/:
moved/VBD
quickly/RB
as/RB
well/RB
./.
The/DT
IRS/NNP
said/VBD
it/PRP
will/MD
waive/VB
certain/JJ
tax/NN
penalties/NNS
for/IN
earthquake/NN
victims/NNS
unable/JJ
to/TO
meet/VB
return/NN
deadlines/NNS
or/CC
make/VB
payments/NNS
because/RB
of/IN
the/DT
quake/NN
's/POS
devastation/NN
./.
The/DT
agency/NN
plans/VBZ
to/TO
announce/VB
specific/JJ
relief/NN
procedures/NNS
in/IN
the/DT
coming/VBG
days/NNS
./.
And/CC
the/DT
Treasury/NNP
said/VBD
residents/NNS
of/IN
the/DT
San/NNP
Francisco/NNP
area/NN
will/MD
be/VB
able/JJ
to/TO
cash/VB
in/IN
savings/NN
bonds/NNS
even/RB
if/IN
they/PRP
have/VBP
n't/RB
held/VBN
them/PRP
for/IN
the/DT
minimum/JJ
six-month/JJ
period/NN
./.
One/CD
advantage/NN
that/IN
federal/JJ
officials/NNS
have/VBP
in/IN
handling/VBG
earthquake/NN
relief/NN
is/VBZ
the/DT
large/JJ
number/NN
of/IN
military/JJ
facilities/NNS
in/IN
the/DT
San/NNP
Francisco/NNP
Bay/NNP
area/NN
,/,
facilities/NNS
that/WDT
provide/VBP
a/DT
ready/JJ
base/NN
of/IN
supplies/NNS
and/CC
workers/NNS
./.
Even/RB
before/IN
the/DT
full/JJ
extent/NN
of/IN
the/DT
devastation/NN
was/VBD
known/VBN
,/,
Defense/NNP
Secretary/NNP
Dick/NNP
Cheney/NNP
ordered/VBD
the/DT
military/JJ
services/NNS
to/TO
set/VB
up/RP
an/DT
emergency/NN
command/NN
center/NN
in/IN
the/DT
Pentagon/NNP
and/CC
prepare/VB
to/TO
respond/VB
to/TO
various/JJ
FEMA/NNP
requests/NNS
for/IN
assistance/NN
./.
By/IN
yesterday/NN
afternoon/NN
,/,
Air/NNP
Force/NNP
transport/NN
planes/NNS
began/VBD
moving/VBG
additional/JJ
rescue/NN
and/CC
medical/JJ
supplies/NNS
,/,
physicians/NNS
,/,
communications/NNS
equipment/NN
and/CC
FEMA/NNP
personnel/NNS
to/TO
California/NNP
./.
A/DT
military/JJ
jet/NN
flew/VBD
a/DT
congressional/JJ
delegation/NN
and/CC
senior/JJ
Bush/NNP
administration/NN
officials/NNS
to/TO
survey/VB
the/DT
damage/NN
./.
And/CC
the/DT
Pentagon/NNP
said/VBD
dozens/NNS
of/IN
additional/JJ
crews/NNS
and/CC
transport/NN
aircraft/NNS
were/VBD
on/IN
alert/JJ
``/``
awaiting/VBG
orders/NNS
to/TO
move/VB
emergency/NN
supplies/NNS
./.
''/''
Two/CD
Air/NNP
Force/NNP
facilities/NNS
near/IN
Sacramento/NNP
,/,
and/CC
Travis/NNP
Air/NNP
Force/NNP
Base/NNP
,/,
50/CD
miles/NNS
northeast/RB
of/IN
San/NNP
Francisco/NNP
,/,
were/VBD
designated/VBN
to/TO
serve/VB
as/IN
medical-airlift/NN
centers/NNS
./.
Some/DT
victims/NNS
also/RB
were/VBD
treated/VBN
at/IN
the/DT
Letterman/NNP
Army/NNP
Medical/NNP
Center/NNP
in/IN
San/NNP
Francisco/NNP
and/CC
at/IN
the/DT
Naval/NNP
Hospital/NNP
in/IN
Oakland/NNP
./.
In/IN
addition/NN
,/,
20/CD
military/JJ
police/NNS
from/IN
the/DT
Presidio/NNP
,/,
a/DT
military/JJ
base/NN
in/IN
San/NNP
Francisco/NNP
,/,
are/VBP
assisting/VBG
with/IN
traffic/NN
control/NN
,/,
and/CC
a/DT
Navy/NNP
ship/NN
was/VBD
moved/VBN
from/IN
a/DT
naval/JJ
station/NN
at/IN
Treasure/NNP
Island/NNP
near/IN
the/DT
Bay/NNP
Bridge/NNP
to/TO
San/NNP
Francisco/NNP
to/TO
help/VB
fight/VB
fires/NNS
./.
To/TO
help/VB
residents/NNS
in/IN
Northern/JJ
California/NNP
rebuild/VB
,/,
FEMA/NNP
intends/VBZ
to/TO
set/VB
up/RP
17/CD
disaster/NN
assistance/NN
offices/NNS
in/IN
the/DT
earthquake/NN
area/NN
in/IN
the/DT
next/JJ
several/JJ
days/NNS
and/CC
to/TO
staff/VB
them/PRP
with/IN
400/CD
to/TO
500/CD
workers/NNS
from/IN
various/JJ
agencies/NNS
,/,
said/VBD
Robert/NNP
Volland/NNP
,/,
chief/NN
of/IN
the/DT
agency/NN
's/POS
individual/JJ
assistance/NN
division/NN
./.
At/IN
these/DT
offices/NNS
,/,
earthquake/NN
victims/NNS
will/MD
be/VB
helped/VBN
in/IN
filling/VBG
out/RP
a/DT
one-page/JJ
form/NN
that/IN
they/PRP
will/MD
need/VB
to/TO
qualify/VB
for/IN
such/JJ
federal/JJ
assistance/NN
as/IN
home-improvement/NN
loans/NNS
and/CC
to/TO
repair/VB
houses/NNS
./.
And/CC
federal/JJ
officials/NNS
are/VBP
promising/VBG
to/TO
move/VB
rapidly/RB
with/IN
federal/JJ
highway/NN
aid/NN
to/TO
rebuild/VB
the/DT
area/NN
's/POS
severely/RB
damaged/JJ
road/NN
system/NN
./.
The/DT
Federal/NNP
Highway/NNP
Administration/NNP
has/VBZ
an/DT
emergency/NN
relief/NN
program/NN
to/TO
help/VB
states/NNS
and/CC
local/JJ
governments/NNS
repair/VB
federally/RB
funded/JJ
highways/NNS
and/CC
bridges/NNS
seriously/RB
damaged/JJ
by/IN
natural/JJ
disasters/NNS
./.
The/DT
account/NN
currently/RB
has/VBZ
$/$
220/CD
million/CD
./.
And/CC
though/IN
federal/JJ
law/NN
dictates/VBZ
that/IN
only/RB
$/$
100/CD
million/CD
can/MD
be/VB
disbursed/VBN
from/IN
that/DT
fund/NN
in/IN
any/DT
one/CD
state/NN
per/IN
disaster/NN
,/,
administration/NN
officials/NNS
expect/VBP
Congress/NNP
to/TO
move/VB
in/RB
to/TO
authorize/VB
spending/VBG
more/JJR
now/RB
in/IN
California/NNP
./.
To/TO
get/VB
that/DT
money/NN
,/,
states/NNS
must/MD
go/VB
through/IN
an/DT
elaborate/JJ
approval/NN
process/NN
,/,
but/CC
officials/NNS
expect/VBP
red/JJ
tape/NN
to/TO
be/VB
cut/VBN
this/DT
time/NN
./.
Keith/NNP
Mulrooney/NNP
,/,
special/JJ
assistant/NN
to/TO
Federal/NNP
Highway/NNP
Administrator/NNP
Thomas/NNP
Larson/NNP
,/,
also/RB
said/VBD
that/IN
after/IN
the/DT
1971/CD
San/NNP
Fernando/NNP
earthquake/NN
in/IN
Southern/NNP
California/NNP
,/,
the/DT
state/NN
set/VBD
tougher/JJR
standards/NNS
for/IN
bridges/NNS
,/,
and/CC
with/IN
federal/JJ
aid/NN
,/,
began/VBD
a/DT
program/NN
to/TO
retrofit/VB
highways/NNS
and/CC
bridges/NNS
for/IN
earthquake/NN
hazards/NNS
./.
The/DT
first/JJ
phase/NN
of/IN
the/DT
program/NN
has/VBZ
been/VBN
completed/VBN
,/,
but/CC
two/CD
other/JJ
phases/NNS
are/VBP
continuing/VBG
./.
The/DT
two/CD
major/JJ
structures/NNS
that/WDT
failed/VBD
Tuesday/NNP
night/NN
,/,
he/PRP
said/VBD
,/,
were/VBD
both/DT
built/VBN
well/RB
before/IN
the/DT
1971/CD
earthquake/NN
--/:
the/DT
San/NNP
Francisco/NNP
Bay/NNP
Bridge/NNP
,/,
completed/VBN
in/IN
the/DT
1930s/NNS
,/,
and/CC
the/DT
section/NN
of/IN
I-880/NN
,/,
built/VBN
in/IN
the/DT
1950s/NNS
./.
The/DT
I-880/NN
section/NN
had/VBD
completed/VBN
the/DT
first/JJ
phase/NN
of/IN
the/DT
retrofitting/NN
./.
Laurie/NNP
McGinley/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
FARMERS/NNS
REAP/VBP
abundant/JJ
crops/NNS
./.
But/CC
how/WRB
much/RB
will/MD
shoppers/NNS
benefit/VB
?/.
The/DT
harvest/NN
arrives/VBZ
in/RB
plenty/NN
after/IN
last/JJ
year/NN
's/POS
drought-ravaged/JJ
effort/NN
:/:
The/DT
government/NN
estimates/VBZ
corn/NN
output/NN
at/IN
7.45/CD
billion/CD
bushels/NNS
,/,
up/RB
51/CD
%/NN
from/IN
last/JJ
fall/NN
./.
Soybean/NN
production/NN
swells/VBZ
24/CD
%/NN
./.
As/IN
a/DT
result/NN
,/,
prices/NNS
paid/VBN
to/TO
farmers/NNS
for/IN
the/DT
commodities/NNS
,/,
which/WDT
are/VBP
used/VBN
in/IN
products/NNS
as/RB
diverse/JJ
as/IN
bubble/NN
gum/NN
and/CC
chicken/NN
feed/NN
,/,
plummet/VBP
20/CD
%/NN
to/TO
33/CD
%/NN
./.
But/CC
do/VBP
n't/RB
expect/VB
too/RB
much/RB
in/IN
the/DT
way/NN
of/IN
price/NN
breaks/NNS
soon/RB
at/IN
the/DT
supermarket/NN
./.
Economists/NNS
expect/VBP
consumer/NN
food/NN
prices/NNS
to/TO
jump/VB
5.5/CD
%/NN
this/DT
year/NN
to/TO
the/DT
highest/JJS
level/NN
since/IN
1980/CD
and/CC
up/RB
from/IN
last/JJ
year/NN
's/POS
4.1/CD
%/NN
rise/NN
./.
Next/JJ
year/NN
may/MD
see/VB
a/DT
drop/NN
of/IN
one/CD
percentage/NN
point/NN
./.
Beef/NN
prices/NNS
,/,
hovering/VBG
near/IN
records/NNS
since/IN
the/DT
drought/NN
,/,
could/MD
drop/VB
in/IN
earnest/NN
this/DT
winter/NN
if/IN
ranchers/NNS
expand/VBP
herds/NNS
./.
Lower/JJR
feed/NN
prices/NNS
may/MD
help/VB
animals/NNS
eat/VB
more/RBR
cheaply/RB
,/,
but/CC
humans/NNS
have/VBP
to/TO
factor/VB
in/RP
an/DT
expensive/JJ
middleman/NN
:/:
the/DT
processor/NN
./.
Food/NN
companies/NNS
probably/RB
wo/MD
n't/RB
cut/VB
their/PRP$
prices/NNS
much/RB
,/,
blaming/VBG
other/JJ
costs/NNS
./.
``/``
Labor/NN
takes/VBZ
the/DT
biggest/JJS
single/JJ
chunk/NN
out/IN
of/IN
the/DT
`/``
food/NN
dollar/NN
,/,
'/''
''/''
says/VBZ
Frank/NNP
Pankyo/NNP
of/IN
the/DT
Food/NNP
Institute/NNP
./.
Stokely/NNP
says/VBZ
stores/NNS
revive/VBP
specials/NNS
like/IN
three/CD
cans/NNS
of/IN
peas/NNS
for/IN
99/CD
cents/NNS
./.
Two/CD
cans/NNS
cost/VBD
89/CD
cents/NNS
during/IN
the/DT
drought/NN
./.
IF/IN
IN/IN
VITRO/NNP
fertilization/NN
works/VBZ
,/,
it/PRP
usually/RB
does/VBZ
so/RB
after/IN
only/RB
a/DT
few/JJ
tries/NNS
./.
Costly/JJ
infertility/NN
problems/NNS
and/CC
procedures/NNS
proliferate/VBP
as/IN
aging/VBG
baby/NN
boomers/NNS
and/CC
others/NNS
decide/VBP
to/TO
have/VB
children/NNS
--/:
now/RB
./.
It/PRP
's/VBZ
estimated/VBN
that/IN
one/CD
in/IN
six/CD
couples/NNS
experiences/VBZ
infertility/NN
,/,
and/CC
in/IN
1987/CD
,/,
Americans/NNPS
spent/VBD
about/IN
$/$
1/CD
billion/CD
to/TO
fight/VB
the/DT
problem/NN
./.
Only/RB
about/IN
five/CD
states/NNS
now/RB
offer/VBP
some/DT
form/NN
of/IN
insurance/NN
coverage/NN
,/,
but/CC
more/JJR
are/VBP
expected/VBN
./.
A/DT
letter/NN
in/IN
the/DT
New/NNP
England/NNP
Journal/NNP
of/IN
Medicine/NNP
notes/VBZ
that/IN
while/IN
technology/NN
offers/VBZ
``/``
almost/RB
endless/JJ
hope/NN
.../:
when/WRB
to/TO
stop/VB
has/VBZ
become/VBN
a/DT
difficult/JJ
question/NN
.../:
./.
''/''
The/DT
authors/NNS
,/,
from/IN
Boston/NNP
's/POS
Beth/NNP
Israel/NNP
Hospital/NNP
,/,
say/VBP
that/IN
84/CD
%/NN
of/IN
the/DT
50/CD
births/NNS
they/PRP
followed/VBD
occurred/VBD
after/IN
only/RB
two/CD
in/IN
vitro/NN
cycles/NNS
./.
It/PRP
adds/VBZ
that/IN
births/NNS
were/VBD
``/``
extremely/RB
unlikely/JJ
''/''
after/IN
the/DT
fourth/JJ
cycle/NN
and/CC
concludes/VBZ
couples/NNS
who/WP
do/VBP
n't/RB
achieve/VB
a/DT
pregnancy/NN
after/IN
four/CD
to/TO
six/CD
procedures/NNS
should/MD
be/VB
advised/VBN
that/DT
success/NN
is/VBZ
unlikely/JJ
./.
Some/DT
couples/NNS
continue/VBP
to/TO
try/VB
./.
``/``
Such/JJ
determination/NN
may/MD
translate/VB
into/IN
extreme/JJ
physical/NN
,/,
emotional/JJ
and/CC
financial/JJ
costs/NNS
,/,
''/''
the/DT
letter/NN
warns/VBZ
./.
MARKET/NN
MOVES/VBZ
,/,
these/DT
managers/NNS
do/VBP
n't/RB
./.
Only/RB
three/CD
of/IN
the/DT
25/CD
corporate/JJ
pension/NN
fund/NN
managers/NNS
attending/VBG
a/DT
Lowry/NNP
Consulting/NNP
Group/NNP
client/NN
conference/NN
say/VBP
they/PRP
plan/VBP
to/TO
change/VB
the/DT
asset/NN
allocation/NN
mix/NN
in/IN
their/PRP$
portfolios/NNS
because/IN
of/IN
the/DT
market/NN
drop/NN
./.
WORLD/NN
ODDITIES/NNS
come/VBP
alive/JJ
in/IN
a/DT
multimedia/NNS
version/NN
of/IN
the/DT
Guinness/NNP
Book/NNP
of/IN
Records/NNPS
./.
The/DT
$/$
99/CD
CD-ROM/NN
disk/NN
it/PRP
can/MD
only/RB
be/VB
played/VBN
on/IN
an/DT
Apple/NNP
Macintosh/NNP
computer/NN
at/IN
the/DT
moment/NN
animation/NN
,/,
music/NN
and/CC
sound/NN
./.
Among/IN
the/DT
Guinness/NNP
disk/NN
's/POS
wonders/NNS
:/:
the/DT
world/NN
's/POS
loudest/JJS
recorded/VBN
belch/NN
./.
ARTY/NNP
FAX/NNP
from/IN
David/NNP
Hockney/NNP
begins/VBZ
a/DT
tongue-in-cheek/JJ
exhibit/NN
today/NN
at/IN
New/NNP
York/NNP
's/POS
Andre/NNP
Emmerich/NNP
Gallery/NNP
./.
One/CD
of/IN
the/DT
artist/NN
's/POS
earliest/JJS
Fax/NN
works/NNS
was/VBD
``/``
Little/JJ
Stanley/NNP
Sleeping/VBG
,/,
''/''
a/DT
portrait/NN
of/IN
his/PRP$
dog/NN
./.
PACS/NNS
GIVE/VBP
and/CC
receive/VBP
in/IN
a/DT
debatable/JJ
duet/NN
with/IN
employees/NNS
'/POS
favored/JJ
charities/NNS
./.
The/DT
Federal/NNP
Election/NNP
Commission/NNP
clears/VBZ
corporate/JJ
plans/NNS
to/TO
donate/VB
to/TO
an/DT
employee/NN
's/POS
chosen/VBN
charity/NN
in/IN
exchange/NN
for/IN
the/DT
worker/NN
's/POS
gift/NN
to/TO
the/DT
company/NN
political/JJ
action/NN
committee/NN
./.
Latest/JJS
approvals/NNS
:/:
Bell/NNP
Atlantic/NNP
's/POS
New/NNP
Jersey/NNP
Bell/NNP
and/CC
General/NNP
Dynamics/NNPS
./.
Companies/NNS
get/VBP
more/JJR
political/JJ
clout/NN
plus/IN
a/DT
possible/JJ
tax-deductible/JJ
charitable/JJ
donation/NN
--/:
so/RB
far/RB
no/DT
word/NN
from/IN
the/DT
IRS/NNP
on/IN
deductibility/NN
./.
Detroit/NNP
Edison/NNP
,/,
the/DT
plan/NN
pioneer/NN
,/,
generated/VBD
$/$
54,000/CD
in/IN
matching/VBG
funds/NNS
this/DT
year/NN
,/,
up/RB
from/IN
$/$
39,000/CD
in/IN
1988/CD
./.
But/CC
the/DT
utility/NN
may/MD
not/RB
continue/VB
next/JJ
year/NN
./.
``/``
We/PRP
're/VBP
on/IN
a/DT
tight/JJ
budget/NN
,/,
''/''
says/VBZ
Detroit/NNP
Edison/NNP
's/POS
Carol/NNP
Roskind/NNP
./.
Two/CD
election/NN
commission/NN
members/NNS
opposed/VBD
the/DT
matching/NN
plans/NNS
./.
Scott/NNP
E./NNP
Thomas/NNP
says/VBZ
the/DT
plans/NNS
give/VBP
employees/NNS
``/``
a/DT
bonus/NN
in/IN
the/DT
form/NN
of/IN
charitable/JJ
donations/NNS
made/VBN
from/IN
an/DT
employer/NN
's/POS
treasury/NN
''/''
in/IN
exchange/NN
for/IN
the/DT
political/JJ
donation/NN
./.
``/``
The/DT
U.S./NNP
government/NN
could/MD
be/VB
,/,
in/IN
effect/NN
,/,
subsidizing/VBG
political/JJ
contributions/NNS
to/TO
corporate/JJ
PACs/NNS
,/,
''/''
he/PRP
says/VBZ
./.
New/NNP
Jersey/NNP
Bell/NNP
awaits/VBZ
state/NN
clearance/NN
./.
Despite/IN
federal/JJ
approval/NN
,/,
General/NNP
Dynamics/NNPS
says/VBZ
it/PRP
decided/VBD
it/PRP
wo/MD
n't/RB
go/VB
ahead/RB
with/IN
the/DT
matching/NN
program/NN
./.
CHRISTMAS/NNP
SHOPPERS/NNS
find/VBP
a/DT
helping/VBG
hand/NN
from/IN
some/DT
catalog/NN
companies/NNS
./.
Blunt/NNP
Ellis/NNP
&/CC
Loewi/NNP
estimates/VBZ
direct/JJ
mail/NN
catalog/NN
sales/NNS
rose/VBD
to/TO
$/$
12/CD
billion/CD
last/JJ
year/NN
./.
And/CC
while/IN
it/PRP
's/VBZ
too/RB
soon/RB
to/TO
tell/VB
how/WRB
sales/NNS
will/MD
fare/VB
in/IN
the/DT
important/JJ
1989/CD
Christmas/NNP
season/NN
,/,
some/DT
companies/NNS
take/VBP
steps/NNS
to/TO
ease/VB
the/DT
usual/JJ
11th-hour/JJ
crush/NN
./.
Spiegel/NNP
promises/VBZ
a/DT
``/``
Guaranteed/JJ
Christmas/NNP
,/,
''/''
with/IN
a/DT
pledge/NN
to/TO
deliver/VB
goods/NNS
before/IN
Christmas/NNP
if/IN
ordered/VBN
by/IN
Dec./NNP
20/CD
./.
And/CC
,/,
for/IN
an/DT
extra/JJ
$/$
6/CD
,/,
Land/NNP
's/POS
End/NNP
will/MD
deliver/VB
orders/NNS
within/IN
two/CD
days/NNS
;/:
customers/NNS
can/MD
designate/VB
the/DT
day/NN
./.
Spiegel/NNP
,/,
which/WDT
also/RB
owns/VBZ
Eddie/NNP
Bauer/NNP
and/CC
Honeybee/NNP
,/,
says/VBZ
that/IN
since/IN
1987/CD
,/,
sales/NNS
have/VBP
doubled/VBN
during/IN
the/DT
week/NN
before/IN
Christmas/NNP
./.
An/DT
L.L./NNP
Bean/NNP
spokeswoman/NN
notes/VBZ
:/:
``/``
People/NNS
are/VBP
just/RB
used/VBN
to/TO
living/VBG
in/IN
a/DT
last-minute/JJ
society/NN
./.
''/''
Blunt/NNP
Ellis/NNP
,/,
a/DT
Milwaukee/NNP
brokerage/NN
firm/NN
,/,
says/VBZ
part/NN
of/IN
the/DT
reason/NN
catalog/NN
sales/NNS
grow/VBP
in/IN
popularity/NN
is/VBZ
because/IN
consumers/NNS
have/VBP
more/JJR
money/NN
but/CC
less/JJR
time/NN
to/TO
spend/VB
it/PRP
./.
L.L./NNP
Bean/NNP
hires/VBZ
about/IN
2,700/CD
workers/NNS
for/IN
the/DT
season/NN
rush/NN
,/,
about/IN
300/CD
more/JJR
than/IN
last/JJ
year/NN
;/:
Land/NNP
's/POS
End/NNP
hires/VBZ
2,000/CD
./.
BRIEFS/NNS
:/:
Guarana/NNP
Antarctica/NNP
,/,
a/DT
Brazilian/JJ
soft/JJ
drink/NN
,/,
is/VBZ
brought/VBN
to/TO
the/DT
U.S./NNP
by/IN
Amcap/NNP
,/,
Chevy/NNP
Chase/NNP
,/,
Md/NNP
./.
New/NNP
Product/NNP
News/NNP
says/VBZ
the/DT
beverage/NN
``/``
looks/VBZ
like/IN
ginger/NN
ale/NN
,/,
tastes/VBZ
a/DT
little/JJ
like/JJ
cherries/NNS
and/CC
smells/VBZ
like/IN
bubble/NN
gum/NN
./.
''/''
.../:
``/``
Amenities/NNS
''/''
planned/VBN
for/IN
Chicago/NNP
's/POS
new/JJ
Parkshore/NNP
Tower/NNP
apartments/NNS
include/VBP
an/DT
on-site/JJ
investment/NN
counselor/NN
./.
Four/CD
years/NNS
ago/RB
,/,
Pittsburgh/NNP
was/VBD
designated/VBN
the/DT
most-livable/JJS
U.S./NNP
city/NN
by/IN
Rand/NNP
McNally/NNP
's/POS
Places/NNPS
Rated/NNP
Almanac/NNP
,/,
and/CC
the/DT
honor/NN
did/VBD
wonders/NNS
to/TO
improve/VB
Pittsburgh/NNP
's/POS
soot-stained/JJ
image/NN
./.
``/``
People/NNS
asked/VBD
,/,
is/VBZ
it/PRP
really/RB
true/JJ
?/.
''/''
says/VBZ
Maury/NNP
Kelley/NNP
,/,
vice/NN
president/NN
,/,
marketing/NN
services/NNS
,/,
for/IN
Beecham/NNP
Products/NNPS
USA/NNP
,/,
a/DT
maker/NN
of/IN
health/NN
and/CC
personal-care/NN
products/NNS
that/WDT
used/VBD
the/DT
ranking/NN
in/IN
its/PRP$
recruiting/NN
brochure/NN
./.
Yuba/NNP
City/NNP
,/,
Calif./NNP
,/,
meanwhile/RB
,/,
ranked/VBD
dead/JJ
last/NN
among/IN
329/CD
metro/NN
areas/NNS
./.
Unamused/JJ
,/,
residents/NNS
burned/VBD
Rand/NNP
McNally/NNP
books/NNS
and/CC
wore/VBD
T-shirts/NNS
that/IN
said/VBD
:/:
``/``
Kiss/VB
my/PRP$
Atlas/NN
./.
''/''
The/DT
almanac/NN
will/MD
be/VB
making/VBG
new/JJ
friends/NNS
and/CC
enemies/NNS
on/IN
Oct./NNP
27/CD
,/,
when/WRB
an/DT
updated/VBN
version/NN
will/MD
be/VB
released/VBN
./.
Pittsburgh/NNP
figures/VBZ
it/PRP
will/MD
be/VB
dethroned/VBN
but/CC
plans/NNS
to/TO
accept/VB
its/PRP$
ouster/NN
graciously/RB
./.
The/DT
city/NN
's/POS
Office/NNP
of/IN
Promotion/NNP
plans/VBZ
media/NNS
events/NNS
to/TO
welcome/VB
its/PRP$
successor/NN
./.
``/``
We/PRP
're/VBP
encouraging/VBG
a/DT
graceful/JJ
transition/NN
,/,
''/''
says/VBZ
Mary/NNP
Kay/NNP
Poppenberg/NNP
,/,
the/DT
organization/NN
's/POS
president/NN
./.
``/``
Our/PRP$
attitude/NN
is/VBZ
that/DT
the/DT
ranking/NN
Miss/NNP
America/NNP
./.
Once/RB
you/PRP
're/VBP
Miss/NNP
America/NNP
,/,
you/PRP
're/VBP
always/RB
Miss/NNP
America/NNP
./.
''/''
Tell/VB
that/DT
to/TO
Atlanta/NNP
,/,
which/WDT
Pittsburgh/NNP
replaced/VBD
as/IN
the/DT
most-livable/JJS
city/NN
in/IN
1985/CD
./.
Many/JJ
Atlantans/NNPS
thought/VBD
Pittsburgh/NNP
was/VBD
an/DT
unworthy/JJ
heir/NN
./.
A/DT
columnist/NN
in/IN
the/DT
Atlanta/NNP
Journal/NNP
and/CC
Constitution/NNP
wrote/VBD
:/:
``/``
Who/WP
did/VBD
the/DT
research/NN
for/IN
this/DT
report/NN
?/.
Two/CD
guys/NNS
from/IN
Gary/NNP
,/,
Ind./NNP
?/.
''/''
Not/RB
so/RB
./.
Co-authors/NNS
David/NNP
Savageau/NNP
and/CC
Richard/NNP
Boyer/NNP
,/,
live/VBP
in/IN
Gloucester/NNP
,/,
Mass./NNP
,/,
and/CC
Asheville/NNP
,/,
N.C./NNP
,/,
respectively/RB
./.
``/``
Atlanta/NNP
,/,
''/''
Mr./NNP
Savageau/NNP
sniffs/VBZ
,/,
``/``
has/VBZ
unrealistic/JJ
pretensions/NNS
to/TO
world-class/JJ
status/NN
./.
''/''
The/DT
new/JJ
edition/NN
lists/VBZ
the/DT
top/JJ
10/CD
metropolitan/JJ
areas/NNS
as/IN
Anaheim-Santa/NNP
Ana/NNP
,/,
Calif./NNP
;/:
Boston/NNP
;/:
Louisville/NNP
,/,
Ky./NNP
;/:
Nassau-Suffolk/NNP
,/,
N.Y./NNP
;/:
New/NNP
York/NNP
;/:
Pittsburgh/NNP
;/:
San/NNP
Diego/NNP
;/:
San/NNP
Francisco/NNP
;/:
Seattle/NN
;/:
and/CC
Washington/NNP
./.
Mr./NNP
Savageau/NNP
says/VBZ
earthquake/NN
or/CC
not/RB
,/,
San/NNP
Francisco/NNP
makes/VBZ
the/DT
list/NN
./.
But/CC
attention/NN
also/RB
rivets/VBZ
on/IN
who/WP
finishes/VBZ
last/RB
,/,
and/CC
Pine/NNP
Bluff/NNP
,/,
Ark./NNP
--/:
which/WDT
finished/VBD
third/RB
to/TO
last/RB
in/IN
1981/CD
and/CC
second/RB
to/TO
last/RB
in/IN
1985/CD
--/:
is/VBZ
certainly/RB
in/IN
the/DT
running/NN
./.
``/``
I/PRP
hate/VBP
to/TO
dignify/VB
the/DT
publication/NN
by/IN
commenting/VBG
on/IN
the/DT
obscene/JJ
rating/NN
,/,
''/''
Mayor/NNP
Carolyn/NNP
Robinson/NNP
says/VBZ
,/,
adding/VBG
that/IN
cities/NNS
have/VBP
no/DT
way/NN
to/TO
rebut/VB
the/DT
book/NN
./.
``/``
It/PRP
's/VBZ
like/IN
fighting/VBG
your/PRP$
way/NN
out/IN
of/IN
a/DT
fog/NN
./.
You/PRP
do/VBP
n't/RB
know/VB
which/WDT
way/NN
to/TO
punch/VB
./.
''/''
Northrop/NNP
Corp./NNP
's/POS
third-quarter/JJ
net/JJ
income/NN
fell/VBD
25/CD
%/NN
to/TO
$/$
21.5/CD
million/CD
,/,
or/CC
46/CD
cents/NNS
a/DT
share/NN
,/,
while/IN
General/NNP
Dynamics/NNPS
Corp./NNP
reported/VBD
nearly/RB
flat/JJ
earnings/NNS
of/IN
$/$
76.5/CD
million/CD
,/,
or/CC
$/$
1.83/CD
a/DT
share/NN
./.
Los/NNP
Angeles-based/JJ
Northrop/NNP
recorded/VBD
an/DT
8.2/CD
%/NN
decline/NN
in/IN
sales/NNS
as/IN
B-2/NN
Stealth/NNP
bomber/NN
research-and-development/NN
revenue/NN
continued/VBD
to/TO
ebb/VB
and/CC
high/JJ
costs/NNS
on/IN
some/DT
other/JJ
programs/NNS
cut/VBD
into/IN
profit/NN
./.
The/DT
aerospace/NN
concern/NN
earned/VBD
$/$
28.8/CD
million/CD
,/,
or/CC
61/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
./.
Sales/NNS
in/IN
the/DT
latest/JJS
period/NN
were/VBD
$/$
1.25/CD
billion/CD
,/,
down/RB
from/IN
$/$
1.36/CD
billion/CD
in/IN
the/DT
1988/CD
quarter/NN
./.
At/IN
St./NNP
Louis-based/JJ
General/NNP
Dynamics/NNPS
,/,
sales/NNS
rose/VBD
10/CD
%/NN
to/TO
$/$
2.52/CD
billion/CD
from/IN
$/$
2.29/CD
billion/CD
./.
It/PRP
earned/VBD
$/$
76.4/CD
million/CD
,/,
or/CC
$/$
1.82/CD
a/DT
share/NN
,/,
in/IN
the/DT
1988/CD
quarter/NN
./.
General/NNP
Dynamics/NNPS
credited/VBD
significant/JJ
earnings/NNS
gains/NNS
in/IN
its/PRP$
general/JJ
aviation/NN
and/CC
material/NN
service/NN
segments/NNS
,/,
an/DT
earnings/NNS
recovery/NN
in/IN
submarine/JJ
operations/NNS
,/,
and/CC
higher/JJR
military/JJ
aircraft/NN
sales/NNS
./.
Northrop/NNP
said/VBD
sales/NNS
fell/VBD
because/RB
of/IN
the/DT
decline/NN
in/IN
B-2/NN
development/NN
dollars/NNS
from/IN
the/DT
government/NN
as/IN
the/DT
plane/NN
continues/VBZ
its/PRP$
initial/JJ
production/NN
stage/NN
and/CC
because/IN
fewer/JJR
F\/A-18/NN
fighter/NN
sections/NNS
are/VBP
being/VBG
produced/VBN
in/IN
its/PRP$
subcontract/JJ
work/NN
with/IN
prime/JJ
contractor/NN
McDonnell/NNP
Douglas/NNP
Corp/NNP
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Northrop/NNP
shares/NNS
closed/VBD
at/IN
$/$
21.125/CD
,/,
off/RB
25/CD
cents/NNS
./.
General/NNP
Dynamics/NNPS
closed/VBD
at/IN
$/$
54.875/CD
,/,
up/RB
50/CD
cents/NNS
./.
Northrop/NNP
,/,
which/WDT
since/IN
early/JJ
1988/CD
has/VBZ
declined/VBN
to/TO
accept/VB
fixed-price/JJ
contracts/NNS
for/IN
research/NN
and/CC
development/NN
,/,
said/VBD
earnings/NNS
were/VBD
hurt/VBN
by/IN
excessive/JJ
costs/NNS
on/IN
a/DT
number/NN
of/IN
such/JJ
contracts/NNS
won/VBD
years/NNS
ago/RB
./.
Among/IN
them/PRP
were/VBD
the/DT
ALQ-135/NN
electronic/JJ
countermeasures/NNS
system/NN
for/IN
the/DT
F-15/NN
fighter/NN
./.
Northrop/NNP
's/POS
interest/NN
expense/NN
also/RB
soared/VBD
to/TO
$/$
35/CD
million/CD
from/IN
$/$
17/CD
million/CD
a/DT
year/NN
ago/RB
./.
It/PRP
said/VBD
debt/NN
remained/VBD
at/IN
the/DT
$/$
1.22/CD
billion/CD
that/DT
has/VBZ
prevailed/VBD
since/IN
early/JJ
1989/CD
,/,
although/IN
that/IN
compared/VBN
with/IN
$/$
911/CD
million/CD
at/IN
Sept./NNP
30/CD
,/,
1988/CD
./.
The/DT
backlog/NN
of/IN
undelivered/JJ
orders/NNS
at/IN
Northrop/NNP
on/IN
Sept./NNP
30/CD
was/VBD
$/$
4.68/CD
billion/CD
,/,
down/RB
from/IN
$/$
5.16/CD
billion/CD
a/DT
year/NN
earlier/RB
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Northrop/NNP
reported/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
46.9/CD
million/CD
,/,
or/CC
$/$
1/CD
a/DT
share/NN
,/,
compared/VBN
with/IN
profit/NN
of/IN
$/$
190.3/CD
million/CD
,/,
or/CC
$/$
4.05/CD
a/DT
share/NN
,/,
in/IN
1988/CD
./.
Sales/NNS
dipped/VBD
3.6/CD
%/NN
to/TO
$/$
3.92/CD
billion/CD
from/IN
$/$
4.07/CD
billion/CD
./.
At/IN
General/NNP
Dynamics/NNPS
,/,
factors/NNS
reducing/VBG
earnings/NNS
in/IN
the/DT
military/JJ
aircraft/NN
segment/NN
included/VBD
higher/JJR
levels/NNS
of/IN
cost-sharing/NN
in/IN
development/NN
of/IN
the/DT
Advanced/NNP
Tactical/NNP
Fighter/NNP
,/,
and/CC
the/DT
high/JJ
cost/NN
of/IN
an/DT
advanced/JJ
version/NN
of/IN
the/DT
F-16/NN
fighter/NN
./.
F-16/NN
deliveries/NN
also/RB
have/VBP
fallen/VBN
``/``
slightly/RB
behind/IN
schedule/NN
,/,
''/''
although/IN
a/DT
return/NN
to/TO
the/DT
previous/JJ
schedule/NN
is/VBZ
expected/VBN
in/IN
1990/CD
,/,
the/DT
company/NN
said/VBD
./.
Backlog/NN
at/IN
General/NNP
Dynamics/NNPS
rose/VBD
to/TO
$/$
16.5/CD
billion/CD
from/IN
$/$
15.8/CD
billion/CD
./.
Its/PRP$
interest/NN
expense/NN
surged/VBD
to/TO
$/$
21.5/CD
million/CD
from/IN
$/$
12.4/CD
million/CD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
General/NNP
Dynamics/NNPS
earned/VBD
$/$
210.3/CD
million/CD
,/,
or/CC
$/$
5.03/CD
a/DT
share/NN
,/,
up/RB
marginally/RB
from/IN
$/$
208.8/CD
million/CD
,/,
or/CC
$/$
4.97/CD
a/DT
share/NN
,/,
on/IN
a/DT
4.9/CD
%/NN
rise/NN
in/IN
sales/NNS
to/TO
$/$
7.41/CD
billion/CD
from/IN
$/$
7.06/CD
billion/CD
./.
Lotus/NNP
Development/NNP
Corp./NNP
reported/VBD
a/DT
surprisingly/RB
strong/JJ
51/CD
%/NN
increase/NN
in/IN
third-quarter/JJ
net/JJ
income/NN
on/IN
a/DT
32/CD
%/NN
sales/NNS
gain/NN
,/,
buoyed/VBN
by/IN
strong/JJ
demand/NN
for/IN
a/DT
new/JJ
version/NN
of/IN
its/PRP$
1-2-3/NNP
computer/NN
spreadsheet/NN
./.
The/DT
results/NNS
topped/VBD
analysts/NNS
'/POS
expectations/NNS
and/CC
the/DT
earnings/NNS
growth/NN
of/IN
competitors/NNS
,/,
prompting/VBG
traders/NNS
to/TO
all/DT
but/CC
forget/VB
the/DT
product-launch/NN
delays/NNS
that/WDT
bogged/VBD
down/RP
the/DT
company/NN
for/IN
much/RB
of/IN
the/DT
past/JJ
two/CD
years/NNS
./.
Yesterday/NN
,/,
in/IN
heavy/JJ
,/,
national/JJ
over-the-counter/JJ
trading/NN
,/,
Lotus/NNP
shares/NNS
rose/VBD
to/TO
$/$
32.50/CD
,/,
up/IN
$/$
1.25/CD
apiece/RB
,/,
capping/VBG
a/DT
threemonth/JJ
run-up/NN
of/IN
more/JJR
than/IN
40/CD
%/NN
./.
Lotus/NNP
said/VBD
net/NN
rose/VBD
to/TO
$/$
23/CD
million/CD
,/,
or/CC
54/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
sales/NNS
of/IN
$/$
153.9/CD
million/CD
./.
A/DT
year/NN
ago/RB
,/,
net/NN
was/VBD
$/$
14.3/CD
million/CD
,/,
or/CC
31/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
sales/NNS
of/IN
$/$
116.8/CD
million/CD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
net/NN
of/IN
$/$
38.5/CD
million/CD
,/,
or/CC
92/CD
cents/NNS
a/DT
share/NN
,/,
trailed/VBD
the/DT
year/NN
earlier/NN
's/POS
$/$
49.9/CD
million/CD
,/,
or/CC
$/$
1.08/CD
a/DT
share/NN
./.
Sales/NNS
rose/VBD
to/TO
$/$
406/CD
million/CD
from/IN
$/$
356/CD
million/CD
the/DT
year/NN
earlier/RB
./.
In/IN
the/DT
first/JJ
half/NN
,/,
Lotus/NNP
struggled/VBD
to/TO
keep/VB
market/NN
share/NN
with/IN
costly/JJ
promotions/NNS
while/IN
customers/NNS
awaited/VBD
the/DT
launch/NN
of/IN
1-2-3/NNP
Release/NNP
3/NNP
,/,
the/DT
upgraded/VBN
spreadsheet/NN
software/NN
./.
Lotus/NNP
's/POS
results/NNS
were/VBD
about/IN
10/CD
%/NN
higher/JJR
than/IN
analysts/NNS
'/POS
average/JJ
expectations/NNS
and/CC
compared/VBN
favorably/RB
with/IN
the/DT
36/CD
%/NN
earnings/NNS
rise/NN
reported/VBN
a/DT
day/NN
earlier/RB
by/IN
rival/JJ
Microsoft/NNP
Corp./NNP
of/IN
Redmond/NNP
,/,
Wash/NNP
./.
The/DT
company/NN
said/VBD
results/NNS
were/VBD
bolstered/VBN
by/IN
upgrades/NNS
to/TO
Release/VB
3/CD
by/IN
previous/JJ
customers/NNS
and/CC
improved/JJ
profit/NN
margins/NNS
,/,
the/DT
result/NN
of/IN
manufacturing-cost/NN
controls/NNS
./.
Rick/NNP
Sherlund/NNP
,/,
a/DT
Goldman/NNP
Sachs/NNP
analyst/NN
,/,
said/VBD
Lotus/NNP
had/VBD
upgrade/JJ
revenue/NN
of/IN
about/IN
$/$
22/CD
million/CD
in/IN
the/DT
quarter/NN
,/,
twice/JJ
what/WP
he/PRP
had/VBD
expected/VBN
./.
Also/RB
,/,
he/PRP
estimated/VBD
unit/NN
shipments/NNS
of/IN
1-2-3/NNP
in/IN
all/DT
its/PRP$
forms/NNS
were/VBD
about/IN
315,000/CD
,/,
up/RB
7/CD
%/NN
from/IN
1988/CD
's/POS
quarterly/JJ
average/NN
./.
Demand/NN
for/IN
the/DT
new/JJ
version/NN
was/VBD
enabling/VBG
Lotus/NNP
to/TO
raise/VB
prices/NNS
with/IN
distributors/NNS
and/CC
to/TO
hold/VB
market/NN
share/NN
against/IN
Microsoft/NNP
and/CC
other/JJ
competitors/NNS
that/WDT
tried/VBD
to/TO
exploit/VB
the/DT
earlier/JJR
delays/NNS
in/IN
Release/NNP
3/CD
's/POS
launch/NN
,/,
Mr./NNP
Sherlund/NNP
added/VBD
./.
He/PRP
estimated/VBD
that/IN
1-2-3/NNP
outsold/VBD
Microsoft/NNP
's/POS
Excel/NNP
spreadsheet/NN
by/IN
four-to-one/RB
in/IN
the/DT
quarter/NN
,/,
and/CC
held/VBD
a/DT
70/CD
%/NN
or/CC
better/JJR
share/NN
of/IN
the/DT
spreadsheet/NN
market/NN
./.
Silicon/NNP
Valley/NNP
heaved/VBD
a/DT
sigh/NN
of/IN
relief/NN
yesterday/NN
./.
Though/IN
details/NNS
were/VBD
sketchy/JJ
in/IN
the/DT
aftermath/NN
of/IN
the/DT
violent/JJ
earthquake/NN
that/WDT
shook/VBD
the/DT
high-tech/JJ
corridor/NN
along/IN
with/IN
the/DT
rest/NN
of/IN
the/DT
San/NNP
Francisco/NNP
Bay/NNP
area/NN
,/,
a/DT
spot/NN
check/NN
of/IN
computer/NN
makers/NNS
turned/VBD
up/RB
little/JJ
,/,
if/IN
any/DT
,/,
potentially/RB
lingering/VBG
damage/NN
to/TO
facilities/NNS
or/CC
fabrication/NN
equipment/NN
./.
Analysts/NNS
and/CC
corporate/JJ
officials/NNS
said/VBD
they/PRP
expected/VBD
practically/RB
no/DT
long-term/JJ
disruption/NN
in/IN
shipments/NNS
from/IN
the/DT
Valley/NNP
of/IN
either/DT
hardware/NN
or/CC
software/NN
goods/NNS
./.
Intel/NNP
Corp./NNP
,/,
Advanced/NNP
Micro/NNP
Devices/NNPS
Inc./NNP
and/CC
National/NNP
Semiconductor/NNP
Corp./NNP
were/VBD
all/DT
up/RB
and/CC
running/VBG
yesterday/NN
,/,
though/IN
many/JJ
workers/NNS
were/VBD
forced/VBN
to/TO
stay/VB
home/NN
because/IN
of/IN
damaged/JJ
roadways/NNS
;/:
others/NNS
elected/VBD
to/TO
take/VB
the/DT
day/NN
off/RB
./.
``/``
These/DT
systems/NNS
are/VBP
more/RBR
rugged/JJ
than/IN
many/JJ
people/NNS
would/MD
believe/VB
,/,
''/''
said/VBD
Thomas/NNP
Kurlak/NNP
,/,
who/WP
tracks/VBZ
the/DT
computer/NN
industry/NN
for/IN
Merrill/NNP
Lynch/NNP
Research/NNP
./.
``/``
It/PRP
's/VBZ
not/RB
the/DT
end/NN
of/IN
the/DT
world/NN
if/IN
you/PRP
shake/VBP
them/PRP
up/RP
a/DT
little/JJ
bit/NN
./.
''/''
Other/JJ
companies/NNS
,/,
including/VBG
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
and/CC
Hewlett-Packard/NNP
Co./NNP
,/,
completely/RB
idled/VBD
their/PRP$
operations/NNS
because/IN
of/IN
Tuesday/NNP
evening/NN
's/POS
temblor/NN
,/,
which/WDT
registered/VBD
6.9/CD
on/IN
the/DT
Richter/NNP
scale/NN
./.
Personnel/NNS
spent/VBD
the/DT
morning/NN
inspecting/VBG
buildings/NNS
for/IN
structural/JJ
weaknesses/NNS
,/,
mopping/VBG
up/RP
water/NN
from/IN
broken/JJ
pipes/NNS
and/CC
clearing/VBG
ceiling/NN
tiles/NNS
and/CC
other/JJ
debris/NN
from/IN
factory/NN
floors/NNS
./.
Still/RB
,/,
many/JJ
were/VBD
confident/JJ
that/IN
``/``
in/IN
a/DT
day/NN
or/CC
two/CD
,/,
everything/NN
should/MD
be/VB
back/RB
to/TO
normal/JJ
,/,
''/''
according/VBG
to/TO
a/DT
spokeswoman/NN
for/IN
the/DT
Semiconductor/NNP
Industry/NNP
Association/NNP
,/,
based/VBN
in/IN
Cupertino/NNP
./.
IBM/NNP
,/,
for/IN
instance/NN
,/,
said/VBD
it/PRP
anticipates/VBZ
returning/VBG
to/TO
a/DT
normal/JJ
work/NN
schedule/NN
by/IN
the/DT
weekend/NN
at/IN
its/PRP$
San/NNP
Jose/NNP
plant/NN
,/,
which/WDT
puts/VBZ
out/IN
disk/NN
drives/NNS
for/IN
the/DT
3090/CD
family/NN
of/IN
mainframes/NNS
./.
A/DT
Hewlett-Packard/NNP
spokeswoman/NN
said/VBD
that/IN
,/,
while/IN
``/``
things/NNS
are/VBP
a/DT
big/JJ
mess/NN
,/,
''/''
some/DT
18,000/CD
Valley/NNP
employees/NNS
have/VBP
been/VBN
called/VBN
back/RB
to/TO
work/VB
today/NN
./.
Apple/NNP
Computer/NNP
added/VBD
that/IN
it/PRP
was/VBD
being/VBG
``/``
cautiously/RB
optimistic/JJ
,/,
''/''
despite/IN
not/RB
yet/CC
closely/RB
eyeballing/VBG
all/DT
of/IN
its/PRP$
50/CD
buildings/NNS
in/IN
the/DT
region/NN
./.
Even/RB
the/DT
carefully/RB
calibrated/VBN
machinery/NN
in/IN
its/PRP$
giant/JJ
Fremont/NNP
plant/NN
,/,
to/TO
the/DT
north/NN
of/IN
the/DT
Valley/NNP
,/,
was/VBD
believed/VBN
to/TO
be/VB
undamaged/JJ
./.
Sun/NNP
Microsystems/NNPS
Inc./NNP
and/CC
Tandem/NNP
Computers/NNPS
Inc./NNP
also/RB
signaled/VBD
that/IN
they/PRP
should/MD
recover/VB
quickly/RB
./.
Digital/NNP
Equipment/NNP
Corp./NNP
,/,
with/IN
major/JJ
facilities/NNS
in/IN
Santa/NNP
Clara/NNP
,/,
Cupertino/NNP
,/,
Palo/NNP
Alto/NNP
and/CC
Mountain/NNP
View/NNP
,/,
said/VBD
that/IN
all/DT
of/IN
its/PRP$
engineering/NN
and/CC
manufacturing/NN
sites/NNS
had/VBD
reported/VBN
to/TO
corporate/JJ
headquarters/NNS
in/IN
Maynard/NNP
,/,
Mass./NNP
,/,
Tuesday/NNP
night/NN
./.
None/NN
sustained/VBD
``/``
significant/JJ
''/''
damage/NN
,/,
a/DT
spokesman/NN
said/VBD
,/,
adding/VBG
that/IN
``/``
the/DT
delicate/JJ
manufacturing/NN
process/NN
machines/NNS
were/VBD
checked/VBN
and/CC
were/VBD
all/DT
found/VBN
to/TO
be/VB
operating/VBG
normally/RB
./.
''/''
For/IN
many/JJ
companies/NNS
,/,
of/IN
course/NN
,/,
there/EX
is/VBZ
still/RB
a/DT
slew/NN
of/IN
nagging/JJ
problems/NNS
to/TO
grapple/VB
with/IN
,/,
some/DT
of/IN
which/WDT
have/VBP
the/DT
potential/NN
to/TO
become/VB
quite/RB
serious/JJ
./.
For/IN
example/NN
,/,
a/DT
spokesman/NN
for/IN
Advanced/NNP
Micro/NNP
Devices/NNPS
said/VBD
the/DT
Sunnyvale/NNP
chip/NN
maker/NN
is/VBZ
worried/VBN
about/IN
blackouts/NNS
./.
A/DT
sudden/JJ
surge/NN
or/CC
drop/NN
in/IN
electric/JJ
power/NN
could/MD
ruin/VB
integrated/JJ
circuits/NNS
being/VBG
built/VBN
./.
But/CC
,/,
given/VBN
what/WP
might/MD
have/VB
happened/VBN
to/TO
the/DT
fragile/JJ
parts/NNS
that/WDT
are/VBP
at/IN
the/DT
heart/NN
of/IN
the/DT
microelectronics/NNS
business/NN
,/,
the/DT
bulk/NN
of/IN
Valley/NNP
companies/NNS
seemed/VBD
to/TO
be/VB
just/RB
about/IN
shouting/VBG
hosannas/NNS
./.
Several/JJ
factors/NNS
apparently/RB
spared/VBD
the/DT
Valley/NNP
--/:
a/DT
sprawling/VBG
suburban/JJ
stretch/NN
from/IN
San/NNP
Jose/NNP
to/TO
Palo/NNP
Alto/NNP
--/:
from/IN
the/DT
kind/NN
of/IN
impact/NN
felt/VBN
in/IN
San/NNP
Francisco/NNP
,/,
an/DT
hour/NN
's/POS
drive/NN
north/NN
./.
For/IN
one/CD
thing/NN
,/,
buildings/NNS
there/RB
tend/VBP
to/TO
be/VB
newer/JJR
and/CC
,/,
thus/RB
,/,
in/IN
step/NN
with/IN
the/DT
latest/JJS
safety/NN
codes/NNS
./.
Also/RB
,/,
the/DT
soil/NN
in/IN
the/DT
Valley/NNP
is/VBZ
solid/JJ
,/,
unlike/IN
the/DT
landfill/NN
of/IN
San/NNP
Francisco/NNP
's/POS
downtown/NN
Marina/NNP
District/NNP
,/,
which/WDT
was/VBD
hit/VBN
with/IN
fires/NNS
and/CC
vast/JJ
destruction/NN
./.
In/IN
addition/NN
,/,
some/DT
microelectronics/NNS
companies/NNS
said/VBD
they/PRP
were/VBD
prepared/JJ
for/IN
tremulous/JJ
conditions/NNS
like/IN
Tuesday/NNP
's/POS
./.
Their/PRP$
machine/NN
tools/NNS
are/VBP
even/RB
bolted/VBN
to/TO
the/DT
shop/NN
floor/NN
./.
Intel/NNP
said/VBD
that/IN
over/IN
the/DT
past/NN
decade/NN
,/,
it/PRP
has/VBZ
installed/VBN
computer/NN
sensors/NNS
and/CC
shutoff/NN
valves/NNS
,/,
sensitive/JJ
to/TO
the/DT
shake/NN
of/IN
an/DT
earthquake/NN
,/,
in/IN
the/DT
pipes/NNS
that/IN
snake/NN
through/IN
its/PRP$
plants/NNS
./.
Like/IN
other/JJ
large/JJ
Valley/NNP
companies/NNS
,/,
Intel/NNP
also/RB
noted/VBD
that/IN
it/PRP
has/VBZ
factories/NNS
in/IN
several/JJ
parts/NNS
of/IN
the/DT
nation/NN
,/,
so/IN
that/IN
a/DT
breakdown/NN
at/IN
one/CD
location/NN
should/MD
n't/RB
leave/VB
customers/NNS
in/IN
a/DT
total/JJ
pinch/NN
./.
That/DT
's/VBZ
certainly/RB
good/JJ
news/NN
for/IN
such/JJ
companies/NNS
as/IN
Compaq/NNP
Computer/NNP
Corp./NNP
,/,
Houston/NNP
,/,
which/WDT
has/VBZ
only/RB
a/DT
four-day/JJ
supply/NN
of/IN
microprocessors/NNS
from/IN
the/DT
Valley/NNP
on/IN
hand/NN
because/IN
of/IN
a/DT
just-in-time/JJ
manufacturing/NN
approach/NN
that/WDT
limits/VBZ
the/DT
buildup/NN
of/IN
inventory/NN
./.
Compaq/NNP
said/VBD
it/PRP
foresees/VBZ
no/DT
difficulties/NNS
in/IN
obtaining/VBG
parts/NNS
in/IN
the/DT
immediate/JJ
future/NN
./.
Computer/NN
makers/NNS
were/VBD
scrambling/VBG
to/TO
help/VB
customers/NNS
recover/VB
from/IN
the/DT
disaster/NN
./.
Digital/NNP
Equipment/NNP
has/VBZ
set/VBN
up/IN
disaster-recovery/NN
response/NN
centers/NNS
in/IN
Dallas/NNP
,/,
Atlanta/NNP
and/CC
Colorado/NNP
Springs/NNPS
,/,
Colo/NNP
./.
These/DT
units/NNS
were/VBD
handling/VBG
calls/NNS
both/DT
from/IN
people/NNS
in/IN
the/DT
San/NNP
Francisco/NNP
area/NN
and/CC
from/IN
computers/NNS
themselves/PRP
,/,
which/WDT
are/VBP
set/VBN
to/TO
dial/VB
Digital/NNP
automatically/RB
when/WRB
trouble/NN
arises/VBZ
./.
They/PRP
then/RB
run/VBP
remotely/RB
controlled/JJ
self-diagnostic/JJ
programs/NNS
./.
Digital/NNP
also/RB
said/VBD
it/PRP
has/VBZ
dispatched/VBN
teams/NNS
of/IN
technicians/NNS
to/TO
California/NNP
./.
Meanwhile/RB
,/,
several/JJ
other/JJ
major/JJ
installations/NNS
around/IN
the/DT
Valley/NNP
--/:
America/NNP
's/POS
center/NN
of/IN
high-tech/JJ
--/:
said/VBD
they/PRP
,/,
too/RB
,/,
fared/VBD
as/RB
well/RB
as/IN
could/MD
be/VB
expected/VBN
./.
Lawrence/NNP
Livermore/NNP
National/NNP
Laboratory/NNP
,/,
where/WRB
the/DT
Energy/NNP
Department/NNP
tests/VBZ
and/CC
conducts/VBZ
research/NN
on/IN
nuclear/JJ
weapons/NNS
,/,
had/VBD
only/RB
``/``
superficial/JJ
damage/NN
,/,
''/''
a/DT
spokesman/NN
said/VBD
./.
At/IN
Lockheed/NNP
Corp./NNP
's/POS
missiles/NNS
and/CC
space/NN
systems/NNS
group/NN
in/IN
Sunnyvale/NNP
,/,
about/IN
40/CD
miles/NNS
south/RB
of/IN
San/NNP
Francisco/NNP
,/,
workers/NNS
were/VBD
asked/VBN
to/TO
head/VB
to/TO
work/VB
yesterday/RB
after/IN
it/PRP
was/VBD
realized/VBN
that/IN
``/``
there/EX
were/VBD
no/DT
show-stoppers/NNS
''/''
in/IN
the/DT
150-plus/JJ
buildings/NNS
on/IN
its/PRP$
one-square-mile/JJ
campus/NN
./.
Several/JJ
engineering/NN
and/CC
research/NN
offices/NNS
needed/VBD
closer/JJR
scrutiny/NN
to/TO
make/VB
sure/JJ
they/PRP
were/VBD
n't/RB
in/IN
danger/NN
of/IN
crumbling/VBG
,/,
but/CC
``/``
the/DT
bulk/NN
of/IN
the/DT
place/NN
is/VBZ
in/IN
pretty/RB
good/JJ
shape/NN
,/,
''/''
an/DT
official/NN
said/VBD
./.
One/CD
of/IN
Lockheed/NNP
's/POS
most/JJS
lucrative/JJ
sectors/NNS
--/:
accounting/VBG
for/IN
more/RBR
than/IN
half/PDT
the/DT
aerospace/NN
company/NN
's/POS
$/$
10.59/CD
billion/CD
in/IN
sales/NNS
in/IN
1988/CD
--/:
the/DT
missiles/NNS
and/CC
space/NN
group/NN
is/VBZ
the/DT
prime/JJ
Pentagon/NNP
contractor/NN
on/IN
the/DT
Trident/NNP
II/NNP
ballistic/JJ
missile/NN
./.
It/PRP
also/RB
generates/VBZ
pieces/NNS
of/IN
the/DT
missile/NN
shield/NN
called/VBD
the/DT
Strategic/NNP
Defense/NNP
Initiative/NNP
./.
Fortunately/RB
,/,
the/DT
Hubble/NNP
Space/NNP
Telescope/NNP
--/:
set/VBN
to/TO
be/VB
launched/VBN
on/IN
the/DT
shuttle/NN
next/IN
year/NN
in/IN
a/DT
search/NN
for/IN
distant/JJ
solar/JJ
systems/NNS
and/CC
light/NN
emitted/VBN
14/CD
billion/CD
years/NNS
ago/RB
from/IN
the/DT
farthest/JJS
reaches/NNS
of/IN
the/DT
universe/NN
--/:
was/VBD
moved/VBN
from/IN
Sunnyvale/NNP
to/TO
the/DT
Kennedy/NNP
Space/NNP
Center/NNP
in/IN
Florida/NNP
at/IN
the/DT
beginning/NN
of/IN
October/NNP
./.
John/NNP
R./NNP
Wilke/NNP
contribued/VBD
to/TO
this/DT
article/NN
./.
Michael/NNP
Maynard/NNP
offered/VBD
the/DT
world/NN
a/DT
faster/JJR
way/NN
to/TO
break/VB
eggs/NNS
./.
As/IN
thanks/NNS
,/,
the/DT
egg/NN
industry/NN
tried/VBD
to/TO
break/VB
him/PRP
./.
And/CC
the/DT
egg/NN
producers/NNS
have/VBP
done/VBN
a/DT
pretty/RB
good/JJ
job/NN
./.
They/PRP
tried/VBD
to/TO
put/VB
Mr./NNP
Maynard/NNP
out/IN
of/IN
business/NN
by/IN
an/DT
act/NN
of/IN
Congress/NNP
./.
Egg-industry/NN
lobbying/NN
helped/VBD
persuade/VB
six/CD
states/NNS
to/TO
ban/VB
Mr./NNP
Maynard/NNP
's/POS
automatic/JJ
egg-breaking/NN
machine/NN
because/IN
of/IN
fears/NNS
over/IN
salmonella/NN
./.
His/PRP$
company/NN
,/,
Misa/NNP
Manufacturing/NNP
Inc./NNP
,/,
was/VBD
forced/VBN
to/TO
seek/VB
protection/NN
from/IN
creditors/NNS
under/IN
federal/JJ
bankruptcy/NN
law/NN
in/IN
1987/CD
and/CC
has/VBZ
since/RB
been/VBN
liquidated/VBN
./.
Monthly/JJ
sales/NNS
of/IN
his/PRP$
Egg/NNP
King/NNP
machine/NN
--/:
which/WDT
he/PRP
now/RB
is/VBZ
marketing/VBG
through/IN
a/DT
new/JJ
company/NN
--/:
have/VBP
sunk/VBN
to/TO
about/IN
half/PDT
a/DT
dozen/NN
from/IN
a/DT
peak/NN
of/IN
75/CD
,/,
says/VBZ
the/DT
46-year-old/JJ
businessman/NN
./.
Mr./NNP
Maynard/NNP
is/VBZ
n't/RB
the/DT
first/JJ
entrepreneur/NN
to/TO
bump/VB
up/IN
against/IN
entrenched/JJ
interests/NNS
./.
But/CC
his/PRP$
case/NN
is/VBZ
notable/JJ
both/DT
for/IN
the/DT
scale/NN
of/IN
the/DT
fight/NN
--/:
it/PRP
is/VBZ
n't/RB
often/RB
that/IN
a/DT
congressional/JJ
hearing/NN
is/VBZ
held/VBN
to/TO
determine/VB
whether/IN
one/CD
small/JJ
businessman/NN
is/VBZ
a/DT
threat/NN
to/TO
the/DT
republic/NN
--/:
and/CC
for/IN
what/WP
it/PRP
tells/VBZ
about/IN
the/DT
pitfalls/NNS
of/IN
marketing/NN
a/DT
new/JJ
product/NN
./.
Now/RB
one/PRP
might/MD
ask/VB
why/WRB
people/NNS
who/WP
sell/VBP
eggs/NNS
would/MD
fight/VB
someone/NN
who/WP
is/VBZ
trying/VBG
to/TO
make/VB
it/PRP
easier/RBR
to/TO
crack/VB
them/PRP
./.
Part/NN
of/IN
the/DT
answer/NN
lies/VBZ
in/IN
the/DT
nature/NN
of/IN
the/DT
industry/NN
./.
Many/JJ
larger/JJR
egg/NN
producers/NNS
are/VBP
also/RB
egg/NN
processors/NNS
,/,
who/WP
crack/VBP
,/,
inspect/VBP
,/,
and/CC
sanitize/VBP
billions/NNS
of/IN
eggs/NNS
,/,
turning/VBG
them/PRP
into/IN
powdered/JJ
,/,
liquified/JJ
or/CC
frozen/JJ
egg/NN
products/NNS
./.
However/RB
,/,
dozens/NNS
of/IN
bakers/NNS
,/,
restaurant/NN
chefs/NNS
and/CC
other/JJ
food/NN
preparers/NNS
who/WP
flocked/VBD
to/TO
Mr./NNP
Maynard/NNP
's/POS
defense/NN
say/VBP
that/IN
products/NNS
ranging/VBG
from/IN
egg/NN
bread/NN
to/TO
eclairs/NNS
lose/VBP
some/DT
zip/NN
when/WRB
the/DT
eggs/NNS
come/VBN
in/IN
30-pound/JJ
cans/NNS
instead/RB
of/IN
shells/NNS
./.
But/CC
for/IN
companies/NNS
that/WDT
use/VBP
hundreds/NNS
of/IN
eggs/NNS
a/DT
day/NN
,/,
breaking/VBG
them/PRP
by/IN
hand/NN
can/MD
get/VB
,/,
well/RB
,/,
out/IN
of/IN
hand/NN
./.
The/DT
idea/NN
behind/IN
the/DT
Egg/NNP
King/NNP
is/VBZ
pretty/JJ
simple/NN
:/:
put/VB
the/DT
eggs/NNS
into/IN
a/DT
cylinder/NN
that/WDT
contains/VBZ
perforated/JJ
baskets/NNS
,/,
spin/VB
them/PRP
at/IN
a/DT
high/JJ
speed/NN
to/TO
break/VB
the/DT
shells/NNS
and/CC
strain/VB
the/DT
edible/JJ
part/NN
through/IN
the/DT
baskets/NNS
./.
One/CD
Egg/NNP
King/NNP
--/:
which/WDT
at/IN
just/RB
under/IN
four/CD
feet/NNS
tall/JJ
and/CC
two/CD
feet/NNS
wide/JJ
has/VBZ
been/VBN
likened/VBN
to/TO
the/DT
robot/NN
R2-D2/NN
--/:
can/MD
crack/VB
about/IN
20,000/CD
eggs/NNS
an/DT
hour/NN
./.
Because/IN
fresh/JJ
eggs/NNS
are/VBP
less/RBR
expensive/JJ
than/IN
processed/VBN
ones/NNS
,/,
a/DT
big/JJ
egg/NN
user/NN
can/MD
recover/VB
the/DT
Egg/NNP
King/NNP
's/POS
$/$
3,390/CD
cost/NN
in/IN
a/DT
few/JJ
months/NNS
,/,
says/VBZ
Mr./NNP
Maynard/NNP
./.
Such/JJ
centrifugal/JJ
egg/NN
breakers/NNS
have/VBP
been/VBN
around/IN
since/IN
the/DT
1890s/NNS
./.
But/CC
when/WRB
Mr./NNP
Maynard/NNP
came/VBD
forward/RB
with/IN
his/PRP$
machine/NN
in/IN
the/DT
early/JJ
1970s/NNS
nobody/NN
else/JJ
was/VBD
offering/VBG
them/PRP
in/IN
the/DT
U.S/NNP
./.
The/DT
main/JJ
reason/NN
:/:
salmonella/NN
./.
Chickens/NNS
carry/VBP
this/DT
bacteria/NNS
,/,
which/WDT
can/MD
cause/VB
upset/JJ
stomachs/NNS
and/CC
,/,
in/IN
rare/JJ
cases/NNS
,/,
death/NN
among/IN
people/NNS
./.
Hens/NNS
sometimes/RB
pass/VBP
salmonella/NN
to/TO
the/DT
eggs/NNS
,/,
and/CC
it/PRP
can/MD
also/RB
be/VB
found/VBN
on/IN
unclean/JJ
shells/NNS
./.
Thus/RB
,/,
any/DT
machine/NN
that/WDT
breaks/VBZ
large/JJ
amounts/NNS
of/IN
eggs/NNS
at/IN
once/RB
has/VBZ
the/DT
potential/NN
to/TO
spread/VB
salmonella/NN
if/IN
a/DT
bad/JJ
egg/NN
gets/VBZ
in/IN
with/IN
the/DT
good/JJ
ones/NNS
./.
Mr./NNP
Maynard/NNP
claims/VBZ
this/DT
is/VBZ
a/DT
manageable/JJ
problem/NN
./.
The/DT
Egg/NNP
King/NNP
carries/VBZ
written/JJ
instructions/NNS
to/TO
break/VB
only/JJ
high-grade/JJ
eggs/NNS
that/WDT
have/VBP
been/VBN
properly/RB
sanitized/VBN
and/CC
,/,
as/IN
an/DT
added/VBN
precaution/NN
,/,
to/TO
use/VB
the/DT
eggs/NNS
only/RB
in/IN
products/NNS
that/WDT
will/MD
be/VB
cooked/VBN
enough/RB
to/TO
kill/VB
bacteria/NNS
./.
With/IN
nearly/RB
4,000/CD
machines/NNS
in/IN
use/NN
,/,
there/EX
have/VBP
been/VBN
no/DT
salmonella/NN
problems/NNS
as/RB
long/RB
as/IN
instructions/NNS
were/VBD
followed/VBN
,/,
Mr./NNP
Maynard/NNP
boasts/VBZ
./.
He/PRP
says/VBZ
the/DT
handful/NN
of/IN
salmonella/NN
cases/NNS
involving/VBG
products/NNS
that/WDT
may/MD
have/VB
used/VBN
eggs/NNS
broken/VBN
by/IN
an/DT
Egg/NNP
King/NNP
stemmed/VBD
from/IN
a/DT
failure/NN
to/TO
adequately/RB
cook/VB
the/DT
products/NNS
./.
But/CC
he/PRP
says/VBZ
that/DT
's/VBZ
no/RB
more/JJR
a/DT
reason/NN
for/IN
banning/VBG
Egg/NNP
Kings/NNPS
than/IN
bad/JJ
drivers/NNS
are/VBP
a/DT
reason/NN
for/IN
banning/VBG
cars/NNS
./.
Opponents/NNS
do/VBP
n't/RB
buy/VB
such/JJ
arguments/NNS
./.
``/``
Human/JJ
nature/NN
being/VBG
what/WP
it/PRP
is/VBZ
,/,
people/NNS
do/VBP
n't/RB
always/RB
follow/VB
instructions/NNS
,/,
''/''
says/VBZ
Jack/NNP
Guzewich/NNP
,/,
chief/NN
of/IN
food/NN
protection/NN
for/IN
the/DT
New/NNP
York/NNP
state/NN
Health/NNP
Department/NNP
./.
Leading/VBG
the/DT
assault/NN
against/IN
the/DT
Egg/NNP
King/NNP
has/VBZ
been/VBN
United/NNP
Egg/NNP
Producers/NNPS
./.
The/DT
Decatur/NNP
,/,
Ga./NNP
,/,
trade/NN
group/NN
has/VBZ
issued/VBN
a/DT
``/``
briefing/NN
book/NN
''/''
that/WDT
claims/VBZ
the/DT
machine/NN
is/VBZ
``/``
a/DT
health/NN
hazard/NN
''/''
and/CC
that/IN
Mr./NNP
Maynard/NNP
is/VBZ
trying/VBG
``/``
to/TO
make/VB
a/DT
fast/JJ
buck/NN
at/IN
the/DT
expense/NN
of/IN
the/DT
nation/NN
's/POS
egg/NN
producers/NNS
./.
''/''
The/DT
UEP/NNP
declines/VBZ
to/TO
comment/VB
,/,
but/CC
the/DT
group/NN
's/POS
attorney/NN
,/,
Alfred/NNP
Frawley/NNP
,/,
says/VBZ
the/DT
group/NN
's/POS
actions/NNS
are/VBP
motivated/VBN
solely/RB
by/IN
``/``
health/NN
concerns/NNS
./.
''/''
An/DT
early/JJ
battleground/NN
was/VBD
the/DT
U.S./NNP
Department/NNP
of/IN
Agriculture/NNP
./.
Mr./NNP
Maynard/NNP
initially/RB
won/VBD
approval/NN
for/IN
his/PRP$
machine/NN
to/TO
be/VB
used/VBN
at/IN
egg-processing/JJ
facilities/NNS
regulated/VBN
by/IN
the/DT
USDA/NNP
's/POS
Food/NNP
Safety/NNP
Inspection/NNP
Service/NNP
./.
Unfortunately/RB
for/IN
Mr./NNP
Maynard/NNP
,/,
another/DT
branch/NN
of/IN
the/DT
USDA/NNP
,/,
the/DT
Agricultural/NNP
Marketing/NNP
Service/NNP
,/,
was/VBD
in/IN
charge/NN
of/IN
eggs/NNS
./.
After/IN
receiving/VBG
complaints/NNS
from/IN
egg/NN
producers/NNS
,/,
this/DT
branch/NN
got/VBD
the/DT
other/JJ
branch/NN
to/TO
rescind/VB
its/PRP$
approval/NN
,/,
thus/RB
limiting/VBG
the/DT
machine/NN
's/POS
potential/JJ
market/NN
to/TO
bakeries/NNS
and/CC
restaurants/NNS
and/CC
other/JJ
establishments/NNS
that/WDT
are/VBP
n't/RB
regulated/VBN
by/IN
the/DT
USDA/NNP
./.
The/DT
egg/NN
producers/NNS
also/RB
lobbied/VBD
the/DT
Food/NNP
and/CC
Drug/NNP
Administration/NNP
./.
But/CC
the/DT
FDA/NNP
in/IN
a/DT
1985/CD
letter/NN
to/TO
the/DT
United/NNP
Egg/NNP
Producers/NNPS
said/VBD
that/IN
there/EX
was/VBD
``/``
little/JJ
likelihood/NN
''/''
of/IN
a/DT
health/NN
problem/NN
as/RB
long/RB
as/IN
instructions/NNS
were/VBD
followed/VBN
./.
So/CC
the/DT
producers/NNS
went/VBD
to/TO
Capitol/NNP
Hill/NNP
,/,
where/WRB
a/DT
congressman/NN
from/IN
Georgia/NNP
introduced/VBD
a/DT
measure/NN
to/TO
ban/VB
centrifugal/JJ
egg-breaking/NN
machines/NNS
./.
Mr./NNP
Maynard/NNP
,/,
whose/WP$
company/NN
at/IN
the/DT
time/NN
was/VBD
based/VBN
in/IN
Santa/NNP
Ana/NNP
,/,
Calif./NNP
,/,
enlisted/VBD
his/PRP$
local/JJ
congressman/NN
,/,
and/CC
the/DT
battle/NN
was/VBD
joined/VBN
./.
Mr./NNP
Maynard/NNP
's/POS
forces/NNS
finally/RB
defeated/VBD
the/DT
measure/NN
,/,
though/IN
it/PRP
took/VBD
a/DT
vote/NN
on/IN
the/DT
floor/NN
of/IN
the/DT
House/NNP
of/IN
Representatives/NNPS
to/TO
do/VB
it/PRP
./.
Even/RB
then/RB
,/,
opponents/NNS
managed/VBD
to/TO
get/VB
a/DT
congressional/JJ
hearing/NN
to/TO
examine/VB
what/WP
one/CD
congressman/NN
called/VBD
an/DT
``/``
unscrupulous/JJ
''/''
method/NN
for/IN
breaking/VBG
eggs/NNS
./.
Foiled/VBN
in/IN
their/PRP$
effort/NN
to/TO
get/VB
a/DT
national/JJ
ban/NN
,/,
the/DT
egg/NN
producers/NNS
turned/VBD
their/PRP$
attention/NN
to/TO
the/DT
states/NNS
./.
So/RB
far/RB
,/,
New/NNP
York/NNP
,/,
New/NNP
Jersey/NNP
,/,
Nebraska/NNP
,/,
Georgia/NNP
,/,
Michigan/NNP
and/CC
Minnesota/NNP
have/VBP
outlawed/VBN
Mr./NNP
Maynard/NNP
's/POS
device/NN
,/,
citing/VBG
health/NN
concerns/NNS
./.
An/DT
antitrust/JJ
suit/NN
that/IN
Mr./NNP
Maynard/NNP
's/POS
company/NN
filed/VBD
in/IN
Los/NNP
Angeles/NNP
federal/JJ
court/NN
against/IN
the/DT
United/NNP
Egg/NNP
Producers/NNPS
and/CC
others/NNS
only/RB
added/VBD
to/TO
the/DT
entrepreneur/NN
's/POS
woes/NNS
./.
The/DT
judge/NN
dismissed/VBD
the/DT
suit/NN
and/CC
ordered/VBD
Mr./NNP
Maynard/NNP
's/POS
company/NN
to/TO
pay/VB
over/IN
$/$
100,000/CD
in/IN
legal/JJ
fees/NNS
to/TO
the/DT
defendants/NNS
'/POS
lawyers/NNS
./.
Mr./NNP
Maynard/NNP
says/VBZ
the/DT
ruling/NN
pushed/VBD
his/PRP$
company/NN
into/IN
bankruptcy/NN
court/NN
./.
Now/RB
he/PRP
has/VBZ
moved/VBN
to/TO
Oklahoma/NNP
where/WRB
costs/NNS
are/VBP
lower/JJR
,/,
and/CC
started/VBD
a/DT
new/JJ
company/NN
,/,
Adsi/NNP
Inc./NNP
,/,
to/TO
market/VB
his/PRP$
machine/NN
./.
But/CC
,/,
so/RB
far/RB
,/,
the/DT
change/NN
of/IN
scenery/NN
has/VBZ
n't/RB
ended/VBD
his/PRP$
string/NN
of/IN
bad/JJ
breaks/NNS
./.
Mr./NNP
Maynard/NNP
recently/RB
fell/VBD
from/IN
a/DT
horse/NN
and/CC
fractured/VBD
his/PRP$
arm/NN
./.
Michelle/NNP
Pfeiffer/NNP
ca/MD
n't/RB
chew/VB
gum/NN
and/CC
sing/VB
at/IN
the/DT
same/JJ
time/NN
./.
But/CC
on/IN
the/DT
evidence/NN
of/IN
``/``
The/DT
Fabulous/NNP
Baker/NNP
Boys/NNPS
,/,
''/''
that/WDT
may/MD
be/VB
the/DT
only/JJ
thing/NN
she/PRP
ca/MD
n't/RB
do/VB
,/,
at/IN
least/JJS
when/WRB
she/PRP
's/VBZ
acting/VBG
in/IN
movies/NNS
./.
As/IN
the/DT
tough/JJ
,/,
slinky/JJ
lounge/NN
chanteuse/NN
in/IN
``/``
The/DT
Fabulous/NNP
Baker/NNP
Boys/NNPS
,/,
''/''
Ms./NNP
Pfeiffer/NNP
sings/VBZ
for/IN
herself/PRP
,/,
and/CC
more/RBR
than/IN
passably/RB
well/RB
./.
Her/PRP$
Susie/NNP
Diamond/NNP
handles/VBZ
a/DT
song/NN
the/DT
way/NN
the/DT
greats/NNS
do/VBP
,/,
like/IN
she/PRP
's/VBZ
hearing/VBG
the/DT
way/NN
it/PRP
should/MD
sound/VB
inside/IN
her/PRP$
head/NN
and/CC
she/PRP
's/VBZ
concentrating/VBG
on/IN
matching/VBG
that/DT
internal/JJ
tone/NN
./.
Yet/RB
her/PRP$
intensity/NN
stops/VBZ
and/CC
starts/VBZ
with/IN
the/DT
music/NN
./.
When/WRB
she/PRP
is/VBZ
n't/RB
performing/VBG
for/IN
an/DT
audience/NN
,/,
she/PRP
prepares/VBZ
for/IN
a/DT
song/NN
by/IN
removing/VBG
the/DT
wad/NN
of/IN
gum/NN
from/IN
her/PRP$
mouth/NN
,/,
and/CC
indicates/VBZ
that/IN
she/PRP
's/VBZ
finished/VBN
by/IN
sticking/VBG
the/DT
gum/NN
back/RB
in/IN
./.
Like/IN
almost/RB
everything/NN
in/IN
this/DT
wonderfully/RB
romantic/JJ
and/CC
edgy/JJ
movie/NN
,/,
Ms./NNP
Pfeiffer/NNP
's/POS
Susie/NNP
seems/VBZ
like/IN
someone/NN
you/PRP
've/VBP
seen/VBN
before/RB
,/,
in/IN
numerous/JJ
show-biz/NN
stories/NNS
her/PRP$
name/NN
,/,
Susie/NNP
Diamond/NNP
,/,
sounds/VBZ
like/IN
a/DT
character/NN
Marilyn/NNP
Monroe/NNP
must/MD
have/VB
played/VBD
)/)
./.
Yet/RB
nothing/NN
about/IN
``/``
Baker/NNP
Boys/NNPS
,/,
''/''
and/CC
certainly/RB
nothing/NN
about/IN
Ms./NNP
Pfeiffer/NNP
,/,
really/RB
is/VBZ
like/IN
something/NN
from/IN
the/DT
video/NN
vault/NN
./.
Steve/NNP
Kloves/NNP
,/,
the/DT
young/JJ
writer/NN
and/CC
director/NN
he/PRP
is/VBZ
n't/RB
yet/RB
30/CD
one/CD
produced/VBN
picture/NN
to/TO
his/PRP$
credit/NN
;/:
he/PRP
wrote/VBD
the/DT
screenplay/NN
for/IN
``/``
Racing/VBG
With/IN
the/DT
Moon/NN
,/,
''/''
a/DT
lovely/JJ
coming-of-age/JJ
picture/NN
set/VBN
in/IN
the/DT
'40s/NNS
./.
Both/DT
movies/NNS
are/VBP
infused/VBN
with/IN
the/DT
nostalgic/JJ
sensibility/NN
of/IN
someone/NN
much/RB
older/JJR
,/,
someone/NN
who/WP
does/VBZ
n't/RB
dismiss/VB
dreams/NNS
,/,
but/CC
who/WP
also/RB
has/VBZ
enough/JJ
experience/NN
to/TO
see/VB
his/PRP$
limits/NNS
./.
However/RB
,/,
Mr./NNP
Kloves/NNP
directs/VBZ
his/PRP$
own/JJ
material/NN
without/IN
sentimentality/NN
and/CC
at/IN
its/PRP$
own/JJ
eccentric/JJ
pace/NN
;/:
``/``
Baker/NNP
Boys/NNPS
''/''
is/VBZ
both/DT
bluesy/JJ
and/CC
funny/JJ
./.
He/PRP
's/VBZ
put/VBN
a/DT
fresh/JJ
spin/NN
on/IN
material/NN
that/WDT
could/MD
come/VB
off/RB
terribly/RB
cliched/JJ
;/:
for/IN
example/NN
,/,
the/DT
way/NN
Susie/NN
wows/VBZ
an/DT
audience/NN
the/DT
first/JJ
time/NN
she/PRP
sings/VBZ
with/IN
the/DT
Baker/NNP
Boys/NNPS
./.
Of/IN
course/NN
,/,
it/PRP
does/VBZ
n't/RB
hurt/VB
that/IN
Mr./NNP
Kloves/NNP
has/VBZ
made/VBN
up/RB
for/IN
his/PRP$
lack/NN
of/IN
experience/NN
behind/IN
the/DT
camera/NN
with/IN
technicians/NNS
who/WP
know/VBP
exactly/RB
what/WP
they/PRP
're/VBP
doing/VBG
./.
Much/JJ
of/IN
the/DT
picture/NN
's/POS
sensuality/NN
emerges/VBZ
from/IN
cinematographer/NN
Michael/NNP
Ballhaus/NNP
's/POS
slyly/RB
seductive/JJ
lens/NN
work/NN
./.
After/IN
working/VBG
for/IN
years/NNS
with/IN
Werner/NNP
Rainer/NNP
Fassbinder/NNP
,/,
the/DT
late/JJ
German/JJ
director/NN
,/,
and/CC
more/RBR
recently/RB
with/IN
Martin/NNP
Scorsese/NNP
``/``
After/IN|JJ
Hours/NNS
,/,
''/''
``/``
The/DT
Color/NN
of/IN
Money/NN
,/,
''/''
``/``
The/DT
Last/JJ
Temptation/NN
of/IN
Christ/NNP
''/''
)/)
,/,
Mr./NNP
Ballhaus/NNP
has/VBZ
developed/VBN
a/DT
distinctively/RB
fluid/JJ
style/NN
./.
And/CC
Dave/NNP
Grusin/NNP
's/POS
witty/JJ
score/NN
embraces/VBZ
the/DT
banal/JJ
requirements/NNS
of/IN
banquet-hall/NN
musicianship/NN
``/``
Feelings/NNS
''/''
is/VBZ
a/DT
must/MD
)/)
without/IN
condescension/NN
./.
Though/IN
Ms./NNP
Pfeiffer/NNP
has/VBZ
the/DT
flashy/JJ
part/NN
--/:
she/PRP
gets/VBZ
the/DT
best/JJS
comic/JJ
bits/NNS
and/CC
to/TO
wear/VB
glamorous/JJ
dresses/NNS
and/CC
spiked/JJ
heels/NNS
the/DT
boys/NNS
are/VBP
pretty/RB
great/JJ
,/,
too/RB
./.
What/WP
seemed/VBD
like/IN
a/DT
good/JJ
idea/NN
,/,
to/TO
cast/VB
the/DT
Bridges/NNPS
brothers/NNS
Jeff/NNP
and/CC
Beau/NNP
the/DT
Baker/NNP
brothers/NNS
,/,
actually/RB
turned/VBD
out/RB
to/TO
be/VB
a/DT
good/JJ
idea/NN
./.
Anyone/NN
who/WP
's/VBZ
tried/VBN
to/TO
appear/VB
``/``
natural/JJ
''/''
in/IN
front/NN
of/IN
a/DT
camera/NN
knows/VBZ
that/IN
it/PRP
's/VBZ
much/RB
more/JJR
natural/NN
to/TO
end/VB
up/RB
looking/VBG
like/IN
a/DT
stiff/NN
./.
So/RB
it/PRP
's/VBZ
quite/RB
possible/JJ
that/IN
the/DT
terrific/JJ
play/NN
between/IN
the/DT
brothers/NNS
is/VBZ
n't/RB
natural/JJ
at/IN
all/DT
,/,
that/IN
Jeff/NNP
and/CC
Beau/NNP
had/VBD
to/TO
work/VB
like/IN
crazy/JJ
to/TO
make/VB
their/PRP$
brotherly/JJ
love/NN
--/:
and/CC
resentment/NN
and/CC
frustration/NN
and/CC
rage/NN
--/:
seem/VB
so/RB
very/RB
real/JJ
./.
When/WRB
the/DT
movie/NN
opens/VBZ
the/DT
Baker/NNP
brothers/NNS
are/VBP
doing/VBG
what/WP
they/PRP
've/VBP
done/VBN
for/IN
15/CD
years/NNS
professionally/RB
,/,
and/CC
twice/RB
as/RB
long/JJ
as/IN
that/DT
for/IN
themselves/PRP
:/:
They/PRP
're/VBP
playing/VBG
proficient/JJ
piano/NN
,/,
face-to-face/RB
,/,
on/IN
twin/JJ
pianos/NNS
./.
They/PRP
're/VBP
small/JJ
time/NN
in/IN
the/DT
small/JJ
time-hotels/NNS
the/DT
best/JJS
ones/NNS
restaurants/NNS
in/IN
Seattle/NNP
./.
Yet/CC
they/PRP
do/VBP
n't/RB
disparage/VB
their/PRP$
audiences/NNS
by/IN
disparaging/VBG
their/PRP$
act/NN
./.
They/PRP
wear/VBP
tuxedos/NNS
most/JJS
nights/NNS
,/,
unless/IN
circumstances/NNS
a/DT
regular/JJ
gig/NN
at/IN
a/DT
``/``
tropical/JJ
''/''
lounge/NN
,/,
for/IN
example/NN
them/PRP
to/TO
wear/VB
special/JJ
costumes/NNS
,/,
like/IN
Hawaiian/JJ
shirts/NNS
./.
Plump/JJ
Beau/NNP
,/,
looking/VBG
eager/JJ
to/TO
please/VB
with/IN
his/PRP$
arched/JJ
eyebrows/NNS
and/CC
round/JJ
face/NN
,/,
plays/VBZ
the/DT
older/JJR
brother/NN
,/,
Frank/NNP
./.
Frank/NNP
plans/VBZ
the/DT
program/NN
,/,
takes/VBZ
care/NN
of/IN
business/NN
,/,
and/CC
approaches/VBZ
the/DT
work/NN
like/IN
any/DT
other/JJ
job/NN
./.
He/PRP
's/VBZ
even/RB
able/JJ
to/TO
think/VB
of/IN
a/DT
job/NN
that/WDT
takes/VBZ
him/PRP
out/IN
of/IN
the/DT
house/NN
300/CD
nights/NNS
a/DT
week/NN
as/IN
an/DT
ordinary/JJ
job/NN
./.
He/PRP
's/VBZ
got/VBN
a/DT
wife/NN
and/CC
two/CD
kids/NNS
and/CC
a/DT
house/NN
in/IN
the/DT
suburbs/NNS
;/:
the/DT
audience/NN
sees/VBZ
only/RB
the/DT
house/NN
,/,
and/CC
only/RB
near/IN
the/DT
end/NN
of/IN
the/DT
movie/NN
./.
Frank/NNP
grovels/VBZ
a/DT
little/RB
for/IN
the/DT
bookers/NNS
,/,
probably/RB
no/RB
more/RBR
or/CC
less/RBR
than/IN
he/PRP
would/MD
have/VB
to/TO
if/IN
he/PRP
worked/VBD
for/IN
a/DT
big/JJ
corporation/NN
./.
On/IN
his/PRP$
off-hours/NNS
he/PRP
wears/VBZ
cardigan/NN
sweaters/NNS
./.
Jeff/NNP
Bridges/NNP
is/VBZ
the/DT
younger/JJR
brother/NN
,/,
Jack/NNP
,/,
who/WP
fancies/VBZ
himself/PRP
the/DT
rebellious/JJ
artist/NN
;/:
he/PRP
lives/VBZ
in/IN
a/DT
loft/NN
with/IN
his/PRP$
sick/JJ
dog/NN
and/CC
the/DT
occasional/JJ
visit/NN
from/IN
the/DT
little/JJ
girl/NN
upstairs/RB
,/,
who/WP
climbs/VBZ
down/IN
the/DT
fire/NN
escape/NN
./.
Yet/RB
Jack/NNP
's/VBZ
the/DT
one/NN
who/WP
can/MD
remember/VB
every/DT
dive/NN
they/PRP
ever/RB
played/VBD
,/,
and/CC
when/WRB
,/,
and/CC
he/PRP
dutifully/RB
shows/VBZ
up/IN
for/IN
work/NN
night/RB
after/IN
night/RB
he/PRP
consoles/VBZ
himself/PRP
with/IN
booze/NN
and/CC
by/IN
showing/VBG
up/RB
at/IN
the/DT
last/JJ
minute/NN
Looking/VBG
leaner/RBR
than/IN
he/PRP
has/VBZ
in/IN
a/DT
while/NN
,/,
the/DT
younger/JJR
Mr./NNP
Bridges/NNP
's/POS
Jack/NNP
is/VBZ
sexy/JJ
and/CC
cynical/JJ
and/CC
a/DT
far/RB
sadder/JJR
case/NN
than/IN
Frank/NNP
,/,
who/WP
's/VBZ
managed/VBN
to/TO
chisel/VB
his/PRP$
dreams/NNS
to/TO
fit/VB
reality/NN
without/IN
feeling/NN
too/RB
cheated/JJ
./.
He/PRP
can/MD
live/VB
with/IN
little/JJ
pleasures/NNS
./.
Mr./NNP
Kloves/NNP
has/VBZ
put/VBN
together/RB
some/DT
priceless/JJ
moments/NNS
./.
These/DT
include/VBP
Jennifer/NNP
Tilly/NNP
's/POS
audition/NN
to/TO
be/VB
the/DT
Baker/NNP
Boys/NNPS
'/POS
girl/NN
singer/NN
./.
Ms./NNP
Tilly/NNP
of/IN
the/DT
tweety-bird/JJ
voice/NN
showed/VBD
great/JJ
comic/JJ
promise/NN
during/IN
her/PRP$
stint/NN
as/IN
the/DT
mobster/NN
's/POS
girlfriend/NN
on/IN
the/DT
television/NN
show/NN
,/,
``/``
Hill/NNP
Street/NNP
Blues/NNPS
./.
''/''
Here/RB
she/PRP
delivers/VBZ
,/,
especially/RB
during/IN
her/PRP
enthusiastically/RB
awful/JJ
rendition/NN
of/IN
the/DT
``/``
Candy/NN
Man/NN
,/,
''/''
which/WDT
she/PRP
sings/VBZ
while/IN
prancing/VBG
around/IN
in/IN
a/DT
little/JJ
cotton/NN
candy/NN
pink/JJ
angora/NN
sweater/NN
that/WDT
could/MD
n't/RB
be/VB
more/RBR
perfect/JJ
./.
It/PRP
matches/VBZ
her/PRP$
voice/NN
./.
Ms./NNP
Pfeiffer/NNP
's/POS
particular/JJ
version/NN
of/IN
``/``
Making/VBG
Whoopee/UH
''/''
--/:
and/CC
the/DT
way/NN
Mr./NNP
Ballhaus/NNP
photographs/VBZ
her/PRP
,/,
from/IN
the/DT
tips/NNS
of/IN
her/PRP$
red/JJ
high/JJ
heels/NNS
right/RB
up/RB
her/PRP
clingy/JJ
red/JJ
velvet/NN
dress/NN
--/:
might/MD
make/VB
you/PRP
think/VB
of/IN
Marilyn/NNP
Monroe/NNP
if/IN
Ms./NNP
Pfeiffer/NNP
had/VBD
n't/RB
gone/VBN
and/CC
become/VBN
a/DT
star/NN
in/IN
her/PRP$
own/JJ
right/NN
./.
VIDEO/NN
TIP/NN
:/:
If/IN
you/PRP
'd/MD
like/VB
to/TO
see/VB
the/DT
first/JJ
time/NN
Michelle/NNP
Pfeiffer/NNP
sang/VBD
on/IN
screen/NN
,/,
and/CC
you/PRP
have/VBP
a/DT
lot/NN
of/IN
patience/NN
,/,
take/VB
a/DT
look/NN
at/IN
``/``
Grease/NN
2/CD
./.
''/''
You/PRP
'll/MD
find/VB
her/PRP
there/RB
./.
Better/RBR
yet/RB
,/,
check/VB
out/RB
the/DT
emergence/NN
of/IN
her/PRP$
comic/JJ
persona/NN
in/IN
``/``
Married/JJ
to/TO
the/DT
Mob/NN
,/,
''/''
Jonathan/NNP
Demme/NNP
's/POS
delightful/JJ
Mafia/NNP
comedy/NN
./.
International/NNP
Proteins/NNPS
Corp./NNP
definitively/RB
agreed/VBD
to/TO
pay/VB
$/$
49/CD
million/CD
and/CC
2,850,000/CD
of/IN
its/PRP$
shares/NNS
for/IN
Hanson/NNP
PLC/NNP
's/POS
Ground/NNP
Round/NNP
restaurant/NN
subsidiary/NN
./.
Shareholders/NNS
of/IN
International/NNP
Proteins/NNPS
,/,
a/DT
food/NN
and/CC
agriproducts/NNS
company/NN
,/,
will/MD
vote/VB
on/IN
the/DT
transaction/NN
at/IN
a/DT
meeting/NN
late/RB
next/JJ
month/NN
./.
Hanson/NNP
is/VBZ
a/DT
London/NNP
producer/NN
of/IN
consumer/NN
and/CC
other/JJ
goods/NNS
./.
International/NNP
Proteins/NNPS
shares/NNS
did/VBD
n't/RB
trade/VB
yesterday/NN
on/IN
the/DT
American/NNP
Stock/NNP
Exchange/NNP
./.
They/PRP
closed/VBD
Tuesday/NNP
in/IN
composite/JJ
trading/NN
at/IN
$/$
13.625/CD
,/,
down/RB
37.5/CD
cents/NNS
,/,
giving/VBG
the/DT
stock/NN
portion/NN
of/IN
the/DT
transaction/NN
an/DT
indicated/VBN
value/NN
of/IN
$/$
38.8/CD
million/CD
./.
Control/NNP
Data/NNP
Corp./NNP
agreed/VBD
to/TO
sell/VB
its/PRP$
idle/JJ
supercomputer/NN
manufacturing/NN
plant/NN
here/RB
to/TO
Minnesota/NNP
Mining/NNP
&/CC
Manufacturing/NNP
Co./NNP
for/IN
$/$
5.8/CD
million/CD
./.
The/DT
tentative/JJ
agreement/NN
calls/VBZ
for/IN
3M/NNP
to/TO
use/VB
the/DT
115,000-square-foot/JJ
plant/NN
and/CC
19/CD
acres/NNS
of/IN
land/NN
for/IN
research/NN
laboratories/NNS
./.
Control/NNP
Data/NNP
has/VBZ
been/VBN
seeking/VBG
a/DT
buyer/NN
for/IN
the/DT
facility/NN
since/IN
it/PRP
folded/VBD
its/PRP$
ETA/NNP
Systems/NNPS
Inc./NNP
supercomputer/NN
unit/NN
this/DT
past/JJ
April/NNP
./.
General/NNP
Dynamics/NNPS
Corp./NNP
was/VBD
awarded/VBN
contracts/NNS
totaling/VBG
$/$
589/CD
million/CD
for/IN
one/CD
Navy/NNP
Trident/NNP
submarine/NN
and/CC
for/IN
Air/NNP
Force/NNP
research/NN
on/IN
the/DT
National/NNP
Aerospace/NNP
plane/NN
./.
Grumman/NNP
Corp./NNP
won/VBD
a/DT
$/$
58.9/CD
million/CD
Navy/NNP
contract/NN
for/IN
12/CD
F-14/NN
aircraft/NN
./.
Raytheon/NNP
Co./NNP
was/VBD
issued/VBN
a/DT
$/$
19.2/CD
million/CD
Air/NNP
Force/NNP
contract/NN
for/IN
support/NN
of/IN
the/DT
Milstar/NNP
communications/NNS
satellite/NN
./.
McDonnell/NNP
Douglas/NNP
Corp./NNP
got/VBD
a/DT
$/$
12.5/CD
million/CD
Air/NNP
Force/NNP
contract/NN
for/IN
support/NN
work/NN
on/IN
the/DT
National/NNP
Aerospace/NNP
plane/NN
./.
Denis/NNP
C./NNP
Smith/NNP
was/VBD
named/VBN
to/TO
the/DT
new/JJ
post/NN
of/IN
vice/NN
president/NN
of/IN
world-wide/JJ
advanced/JJ
materials/NNS
operations/NNS
for/IN
this/DT
chemicals/NNS
concern/NN
./.
Mr./NNP
Smith/NNP
,/,
50/CD
years/NNS
old/JJ
,/,
was/VBD
formerly/RB
responsible/JJ
for/IN
advanced/JJ
materials/NNS
,/,
which/WDT
include/VBP
plastic/JJ
composites/NNS
and/CC
alloys/NNS
,/,
in/IN
North/NNP
America/NNP
only/RB
./.
Himont/NNP
is/VBZ
81%-owned/JJ
by/IN
Montedison/NNP
S.p/NNP
./.
A./NNP
of/IN
Milan/NNP
,/,
Italy/NNP
./.
Galveston-Houston/NNP
Co./NNP
said/VBD
it/PRP
will/MD
redeem/VB
all/DT
3,950/CD
shares/NNS
of/IN
its/PRP$
privately/RB
held/JJ
6.5/CD
%/NN
convertible/JJ
Series/NN
C/NNP
preferred/JJ
stock/NN
Nov./NNP
8/CD
./.
Holders/NNS
can/MD
either/RB
convert/VB
each/DT
share/NN
into/IN
421/CD
shares/NNS
of/IN
the/DT
company/NN
's/POS
common/JJ
stock/NN
,/,
or/CC
surrender/VB
their/PRP$
shares/NNS
at/IN
the/DT
per-share/JJ
price/NN
of/IN
$/$
1,000/CD
,/,
plus/CC
accumulated/VBN
dividends/NNS
of/IN
$/$
6.71/CD
a/DT
share/NN
./.
Galveston-Houston/NNP
makes/VBZ
and/CC
markets/VBZ
products/NNS
for/IN
the/DT
construction/NN
,/,
mining/NN
and/CC
energy/NN
industries/NNS
./.
Bank/NNP
Building/NNP
&/CC
Equipment/NNP
Corp./NNP
of/IN
America/NNP
,/,
which/WDT
previously/RB
said/VBD
accounting/NN
discrepancies/NNS
its/PRP$
auditors/NNS
uncovered/VBN
would/MD
hurt/VB
earnings/NNS
and/CC
require/VB
restatement/NN
of/IN
earlier/JJR
results/NNS
,/,
increased/VBN
its/PRP$
projections/NNS
of/IN
the/DT
negative/JJ
fiscal/JJ
impact/NN
,/,
and/CC
said/VBD
it/PRP
was/VBD
exploring/VBG
the/DT
company/NN
's/POS
sale/NN
./.
Bank/NNP
Building/NNP
,/,
which/WDT
builds/VBZ
and/CC
equips/VBZ
banks/NNS
,/,
had/VBD
announced/VBN
it/PRP
would/MD
restate/VB
the/DT
first-three/JJ

quarters/NNS
of/IN
this/DT
fiscal/JJ
year/NN
,/,
which/WDT
ends/VBZ
Oct./NNP
31/CD
./.
On/IN
Oct./NNP
5/CD
,/,
the/DT
company/NN
estimated/VBD
after-tax/JJ
effects/NNS
on/IN
the/DT
year/NN
's/POS
earnings/NNS
would/MD
be/VB
``/``
at/IN
least/JJS
''/''
$/$
1.3/CD
million/CD
./.
Yesterday/NN
,/,
the/DT
company/NN
said/VBD
the/DT
negative/JJ
after-tax/JJ
effect/NN
on/IN
earnings/NNS
for/IN
the/DT
year/NN
will/MD
be/VB
about/IN
$/$
3.3/CD
million/CD
./.
For/IN
the/DT
nine/CD
months/NNS
ended/VBN
July/NNP
31/CD
,/,
Bank/NNP
Building/NNP
had/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
1/CD
million/CD
,/,
on/IN
revenue/NN
of/IN
$/$
66.5/CD
million/CD
./.
Bank/NNP
Building/NNP
,/,
which/WDT
expects/VBZ
to/TO
report/VB
a/DT
fourth-quarter/JJ
loss/NN
,/,
said/VBD
it/PRP
engaged/VBD
advisers/NNS
to/TO
``/``
explore/VB
financial/JJ
alternatives/NNS
for/IN
the/DT
company/NN
including/VBG
the/DT
possible/JJ
sale/NN
of/IN
the/DT
company/NN
or/CC
one/CD
or/CC
more/JJR
of/IN
its/PRP$
units/NNS
./.
''/''
Company/NN
auditors/NNS
are/VBP
continuing/VBG
their/PRP$
review/NN
,/,
and/CC
final/JJ
restated/VBN
figures/NNS
are/VBP
n't/RB
yet/RB
available/JJ
./.
Bank/NNP
Building/NNP
earlier/RB
said/VBD
the/DT
restatement/NN
is/VBZ
necessitated/VBN
by/IN
``/``
certain/JJ
errors/NNS
in/IN
recording/VBG
receivables/NN
and/CC
payables/NNS
''/''
at/IN
its/PRP$
Loughman/NNP
Cabinet/NNP
division/NN
./.
That/DT
division/NN
's/POS
manager/NN
has/VBZ
been/VBN
fired/VBN
./.
In/IN
American/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Bank/NNP
Building/NNP
closed/VBD
at/IN
$/$
4/CD
a/DT
share/NN
,/,
down/RB
62.5/CD
cents/NNS
./.
Gen./NNP
Paul/NNP
X./NNP
Kelley/NNP
,/,
retired/JJ
commandant/NN
of/IN
the/DT
U.S./NNP
Marine/NNP
Corps/NNP
,/,
was/VBD
elected/VBN
a/DT
director/NN
of/IN
this/DT
plastics/NNS
,/,
specialty/NN
materials/NNS
and/CC
aerospace/NN
concern/NN
,/,
succeeding/VBG
Jewel/NNP
Lafontant/NNP
,/,
who/WP
resigned/VBD
to/TO
accept/VB
a/DT
government/NN
position/NN
./.
Rep./NNP
Mary/NNP
Rose/NNP
Oakar/NNP
D./NNP
,/,
Ohio/NNP
last/JJ
week/NN
's/POS
hearings/NNS
on/IN
irregularities/NNS
in/IN
programs/NNS
at/IN
the/DT
Department/NNP
of/IN
Housing/NNP
and/CC
Urban/NNP
Development/NNP
:/:
I/PRP
do/VBP
n't/RB
want/VB
to/TO
feel/VB
guilty/JJ
representing/VBG
my/PRP$
constituents/NNS
./.
And/CC
if/IN
I/PRP
think/VBP
that/IN
some/DT
people/NNS
HUD/NNP
Secretary/NNP
Jack/NNP
Kemp/NNP
's/POS
staff/NN
are/VBP
off/RB
base/NN
in/IN
terms/NNS
in/IN
which/WDT
they/PRP
're/VBP
evaluating/VBG
certain/JJ
things/NNS
affecting/VBG
my/PRP$
hometown/NN
,/,
I/PRP
have/VBP
to/TO
tell/VB
you/PRP
something/NN
--/:
I/PRP
'm/VBP
not/RB
going/VBG
to/TO
take/VB
it/PRP
./.
I/PRP
think/VBP
that/IN
I/PRP
'm/VBP
elected/VBN
to/TO
represent/VB
the/DT
people/NNS
that/WDT
sent/VBD
me/PRP
here/RB
./.
And/CC
one/CD
of/IN
our/PRP$
charges/NNS
is/VBZ
to/TO
be/VB
an/DT
ombudsman/NN
for/IN
our/PRP$
area/NN
./.
And/CC
if/IN
we/PRP
're/VBP
not/RB
ombudsman/NN
for/IN
our/PRP$
area/NN
,/,
we/PRP
ought/MD
to/TO
be/VB
thrown/VBN
out/IN
of/IN
office/NN
./.
On/IN
the/DT
other/JJ
hand/NN
,/,
if/IN
we/PRP
're/VBP
asking/VBG
for/IN
something/NN
unreasonable/JJ
or/CC
unethical/JJ
and/CC
so/RB
on/RB
,/,
then/RB
that/DT
's/VBZ
a/DT
whole/JJ
different/JJ
story/NN
./.
But/CC
if/IN
I/PRP
feel/VBP
that/IN
there/EX
are/VBP
situations/NNS
where/WRB
I/PRP
'm/VBP
trying/VBG
to/TO
get/VB
housing/NN
for/IN
our/PRP$
area/NN
--/:
whatever/WDT
it/PRP
happens/VBZ
to/TO
be/VB
--/:
and/CC
I/PRP
have/VBP
to/TO
feel/VB
that/IN
I/PRP
ca/MD
n't/RB
even/RB
ask/VB
a/DT
question/NN
,/,
I/PRP
've/VBP
got/VBD
to/TO
tell/VB
you/PRP
,/,
I/PRP
think/VBP
that/DT
's/VBZ
outrageous/JJ
./.
./.
I/PRP
think/VBP
these/DT
regulations/NNS
that/WDT
would/MD
prohibit/VB
well-operated/JJ
programs/NNS
in/IN
areas/NNS
across/IN
this/DT
country/NN
would/MD
be/VB
wrong/JJ
to/TO
change/VB
.../:
./.
I/PRP
do/VBP
n't/RB
want/VB
to/TO
see/VB
some/DT
guidelines/NNS
change/VB
that/DT
's/VBZ
going/VBG
to/TO
inhibit/VB
my/PRP$
city/NN
's/POS
opportunity/NN
to/TO
use/VB
its/PRP$
money/NN
./.
The/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
said/VBD
it/PRP
fined/VBD
Capcom/NNP
Futures/NNPS
Inc./NNP
$/$
500,000/CD
and/CC
accepted/VBD
its/PRP$
withdrawal/NN
from/IN
membership/NN
as/IN
part/NN
of/IN
a/DT
settlement/NN
of/IN
disciplinary/JJ
actions/NNS
against/IN
the/DT
firm/NN
./.
Capcom/NNP
Futures/NNPS
is/VBZ
a/DT
Chicago/NNP
subsidiary/NN
of/IN
Capcom/NNP
Financial/NNP
Services/NNPS
Ltd./NNP
,/,
a/DT
London/NNP
financial/JJ
firm/NN
that/WDT
was/VBD
implicated/VBN
last/JJ
year/NN
in/IN
a/DT
scheme/NN
to/TO
launder/VB
drug/NN
money/NN
./.
The/DT
case/NN
is/VBZ
pending/VBG
./.
The/DT
firm/NN
was/VBD
indicted/VBN
in/IN
Tampa/NNP
,/,
Fla./NNP
,/,
on/IN
money-laundering/NN
charges/NNS
./.
In/IN
June/NNP
,/,
the/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
said/VBD
it/PRP
suspended/VBD
Capcom/NNP
Financial/NNP
./.
The/DT
Capcom/NNP
Futures/NNPS
unit/NN
withdrew/VBD
from/IN
Board/NNP
of/IN
Trade/NNP
membership/NN
voluntarily/RB
in/IN
August/NNP
,/,
a/DT
Board/NNP
of/IN
Trade/NNP
spokesman/NN
said/VBD
./.
Capcom/NNP
Futures/NNPS
,/,
while/IN
neither/CC
admitting/VBG
nor/CC
denying/VBG
the/DT
Merc/NNP
charges/NNS
,/,
said/VBD
in/IN
a/DT
statement/NN
that/IN
the/DT
Merc/NNP
charges/NNS
were/VBD
``/``
technical/JJ
in/IN
nature/NN
''/''
and/CC
that/IN
``/``
no/DT
customers/NNS
were/VBD
hurt/VBN
''/''
as/IN
a/DT
result/NN
of/IN
the/DT
violations/NNS
cited/VBN
by/IN
the/DT
Merc/NNP
./.
The/DT
Merc/NNP
alleged/VBD
that/IN
,/,
among/IN
other/JJ
things/NNS
,/,
from/IN
April/NNP
1987/CD
through/IN
October/NNP
1988/CD
Capcom/NNP
Futures/NNPS
failed/VBD
to/TO
document/VB
trades/NNS
between/IN
Capcom/NNP
Futures/NNPS
and/CC
people/NNS
or/CC
entities/NNS
directly/RB
or/CC
indirectly/RB
controlled/JJ
by/IN
Capcom/NNP
Futures/NNPS
shareholders/NNS
./.
Frederick/NNP
W./NNP
Lang/NNP
,/,
65/CD
years/NNS
old/JJ
,/,
the/DT
founder/NN
of/IN
this/DT
software/NN
services/NNS
concern/NN
,/,
was/VBD
elected/VBN
to/TO
the/DT
new/JJ
post/NN
of/IN
chairman/NN
./.
Formerly/RB
president/NN
and/CC
treasurer/NN
,/,
Mr./NNP
Lang/NNP
remains/VBZ
chief/JJ
executive/NN
officer/NN
./.
Victor/NNP
C./NNP
Benda/NNP
,/,
58/CD
,/,
formerly/RB
executive/NN
vice/NN
president/NN
,/,
succeeds/VBZ
Mr./NNP
Lang/NNP
as/IN
president/NN
and/CC
becomes/VBZ
chief/JJ
operating/VBG
officer/NN
,/,
a/DT
new/JJ
post/NN
./.
Maurice/NNP
Warren/NNP
,/,
56-year-old/JJ
group/NN
managing/NN
director/NN
,/,
was/VBD
named/VBN
chief/JJ
executive/NN
officer/NN
of/IN
this/DT
food/NN
and/CC
agriculture/NN
group/NN
./.
The/DT
post/NN
of/IN
chief/JJ
executive/NN
has/VBZ
been/VBN
vacant/JJ
since/IN
July/NNP
when/WRB
Terry/NNP
Pryce/NNP
,/,
55/CD
,/,
left/VBD
the/DT
company/NN
./.
Money-market/NN
mutual/JJ
fund/NN
assets/NNS
grew/VBD
at/IN
nearly/RB
three/CD
times/NNS
their/PRP$
usual/JJ
rate/NN
in/IN
the/DT
latest/JJS
week/NN
,/,
as/IN
investors/NNS
opted/VBD
for/IN
safety/NN
instead/RB
of/IN
the/DT
stock/NN
market/NN
./.
Money-fund/NN
assets/NNS
soared/VBD
$/$
4.5/CD
billion/CD
in/IN
the/DT
week/NN
ended/VBD
Tuesday/NNP
,/,
to/TO
a/DT
record/NN
$/$
348.4/CD
billion/CD
,/,
according/VBG
to/TO
IBC\/Donoghue/NN
's/POS
Money/NNP
Fund/NNP
Report/NNP
,/,
a/DT
Holliston/NNP
,/,
Mass.-based/JJ
newsletter/NN
./.
``/``
We/PRP
were/VBD
expecting/VBG
it/PRP
,/,
following/VBG
the/DT
fall/NN
of/IN
the/DT
Dow/NNP
Friday/NNP
,/,
''/''
said/VBD
Brenda/NNP
Malizia/NNP
Negus/NNP
,/,
editor/NN
of/IN
Money/NNP
Fund/NNP
Report/NNP
./.
``/``
It/PRP
's/VBZ
the/DT
proverbial/JJ
flight/NN
to/TO
safety/NN
./.
''/''
Despite/IN
recent/JJ
declines/NNS
in/IN
interest/NN
rates/NNS
,/,
money/NN
funds/NNS
continue/VBP
to/TO
offer/VB
better/JJR
yields/NNS
than/IN
other/JJ
comparable/JJ
investments/NNS
./.
The/DT
average/JJ
seven-day/JJ
compound/NN
yield/NN
on/IN
the/DT
400/CD
taxable/JJ
funds/NNS
tracked/VBN
by/IN
IBC\/Donoghue/NNP
's/POS
was/VBD
8.55/CD
%/NN
in/IN
the/DT
latest/JJS
week/NN
,/,
down/RB
from/IN
8.60/CD
%/NN
./.
Compound/NN
yields/NNS
assume/VBP
reinvestment/NN
of/IN
dividends/NNS
and/CC
that/IN
current/JJ
yields/NNS
continue/VBP
for/IN
a/DT
year/NN
./.
Most/RBS
short-term/JJ
certificates/NNS
of/IN
deposit/NN
are/VBP
yielding/VBG
about/IN
8/CD
%/NN
or/CC
less/JJR
at/IN
major/JJ
banks/NNS
,/,
and/CC
the/DT
yields/NNS
on/IN
Treasury/NNP
bills/NNS
sold/VBN
at/IN
Monday/NNP
's/POS
auction/NN
fell/VBD
to/TO
7.61/CD
%/NN
for/IN
three/CD
months/NNS
and/CC
7.82/CD
%/NN
for/IN
six/CD
months/NNS
./.
Money-fund/NN
assets/NNS
have/VBP
been/VBN
rising/VBG
at/IN
an/DT
average/JJ
rate/NN
of/IN
$/$
1.6/CD
billion/CD
a/DT
week/NN
in/IN
recent/JJ
months/NNS
,/,
Ms./NNP
Negus/NNP
said/VBD
,/,
reflecting/VBG
the/DT
relatively/RB
high/JJ
yields/NNS
./.
In/IN
the/DT
latest/JJS
week/NN
,/,
funds/NNS
open/JJ
to/TO
institutions/NNS
alone/RB
grew/VBD
by/IN
$/$
1.8/CD
billion/CD
./.
Some/DT
fund/NN
managers/NNS
say/VBP
inflows/NNS
could/MD
increase/VB
in/IN
coming/VBG
days/NNS
as/IN
a/DT
result/NN
of/IN
stock/NN
selling/NN
in/IN
the/DT
wake/NN
of/IN
Friday/NNP
's/POS
190.58/CD
point/JJ
drop/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
./.
``/``
If/IN
you/PRP
're/VBP
selling/VBG
equities/NNS
,/,
you/PRP
do/VBP
n't/RB
start/VB
getting/VBG
proceeds/NNS
for/IN
five/CD
to/TO
seven/CD
days/NNS
,/,
''/''
said/VBD
Frank/NNP
Rachwalski/NNP
,/,
who/WP
manages/VBZ
the/DT
Kemper/NNP
Money/NNP
Market/NNP
Fund/NNP
./.
Neal/NNP
Litvack/NNP
,/,
marketing/NN
vice/NN
president/NN
for/IN
Fidelity/NNP
Investments/NNPS
,/,
said/VBD
inflows/NNS
Friday/NNP
into/IN
Fidelity/NNP
's/POS
Spartan/NNP
and/CC
Cash/NNP
Reserves/NNPS
money-market/NN
funds/NNS
were/VBD
about/IN
twice/RB
normal/JJ
levels/NNS
,/,
with/IN
about/IN
half/NN
coming/VBG
from/IN
equity/NN
and/CC
junk-bond/NN
funds/NNS
./.
Monday/NNP
and/CC
Tuesday/NNP
``/``
were/VBD
lackluster/JJ
in/IN
comparison/NN
,/,
''/''
he/PRP
said/VBD
./.
``/``
People/NNS
are/VBP
n't/RB
necessarily/RB
running/VBG
scared/RB
,/,
''/''
Mr./NNP
Litvack/NNP
said/VBD
./.
``/``
They/PRP
're/VBP
maintaining/VBG
their/PRP$
attitude/NN
toward/IN
investing/NN
,/,
which/WDT
has/VBZ
leaned/VBN
toward/IN
the/DT
conservative/NN
recently/RB
./.
''/''
Money-fund/NN
yields/NNS
tend/VBP
to/TO
lag/VB
interestrate/NN
trends/NNS
as/IN
portfolio/NN
managers/NNS
adjust/VBP
the/DT
maturities/NNS
of/IN
their/PRP$
investments/NNS
--/:
short-term/JJ
Treasury/NNP
securities/NNS
,/,
commercial/JJ
paper/NN
and/CC
the/DT
like/JJ
--/:
to/TO
capture/VB
the/DT
highest/JJS
yields/NNS
./.
Maturities/NNS
usually/RB
are/VBP
shorter/JJR
when/WRB
rates/NNS
are/VBP
rising/VBG
and/CC
longer/JJR
when/WRB
they/PRP
are/VBP
falling/VBG
./.
The/DT
average/JJ
maturity/NN
of/IN
the/DT
funds/NNS
tracked/VBN
by/IN
IBC\/Donoghue/NNP
's/POS
remained/VBD
at/IN
38/CD
days/NNS
for/IN
the/DT
third/JJ
consecutive/JJ
week/NN
./.
It/PRP
was/VBD
as/RB
short/JJ
as/IN
29/CD
days/NNS
at/IN
the/DT
start/NN
of/IN
this/DT
year/NN
,/,
when/WRB
rates/NNS
were/VBD
marching/VBG
steadily/RB
upward/RB
,/,
and/CC
hit/VBD
42/CD
days/NNS
in/IN
August/NNP
./.
The/DT
average/JJ
seven-day/JJ
simple/JJ
yield/NN
of/IN
the/DT
funds/NNS
fell/VBD
to/TO
8.21/CD
%/NN
this/DT
week/NN
from/IN
8.26/CD
%/NN
./.
The/DT
average/JJ
30-day/JJ
simple/JJ
yield/NN
was/VBD
8.26/CD
%/NN
,/,
compared/VBN
with/IN
8.27/CD
%/NN
the/DT
week/NN
before/RB
,/,
and/CC
the/DT
30-day/JJ
compound/NN
yield/NN
slid/VBD
to/TO
8.60/CD
%/NN
from/IN
8.61/CD
%/NN
./.
Some/DT
funds/NNS
are/VBP
posting/VBG
yields/NNS
far/RB
higher/JJR
than/IN
the/DT
average/NN
./.
The/DT
highest/RBS
yielding/JJ
taxable/JJ
fund/NN
this/DT
week/NN
was/VBD
Harbor/NNP
Money/NNP
Market/NNP
Fund/NNP
,/,
with/IN
a/DT
seven-day/JJ
compound/NN
yield/NN
of/IN
12.75/CD
%/NN
./.
That/IN
included/VBD
capital/NN
gains/NNS
that/WDT
were/VBD
passed/VBN
along/RB
to/TO
customers/NNS
./.
Among/IN
the/DT
other/JJ
high-yielding/JJ
funds/NNS
,/,
Fidelity/NNP
's/POS
Spartan/NNP
Fund/NNP
had/VBD
a/DT
seven-day/JJ
compound/NN
yield/NN
of/IN
9.33/CD
%/NN
in/IN
the/DT
latest/JJS
week/NN
./.
The/DT
seven-day/JJ
compound/NN
yield/NN
of/IN
the/DT
Dreyfus/NNP
Worldwide/NNP
Dollar/NNP
Fund/NNP
was/VBD
9.51/CD
%/NN
./.
whose/WP$
Della/NNP
Femina/NNP
McNamee/NNP
WCRS/NNP
agency/NN
created/VBD
liar/NN
Joe/NNP
Isuzu/NNP
,/,
among/IN
others/NNS
--/:
announced/VBD
a/DT
massive/JJ
restructuring/NN
that/WDT
largely/RB
removes/VBZ
it/PRP
from/IN
the/DT
advertising/NN
business/NN
and/CC
includes/VBZ
selling/VBG
the/DT
majority/NN
of/IN
its/PRP$
advertising/NN
unit/NN
to/TO
Paris-based/JJ
Eurocom/NNP
./.
The/DT
complex/JJ
restructuring/NN
,/,
which/WDT
was/VBD
long/RB
expected/VBN
,/,
transforms/VBZ
London-based/JJ
WCRS/NNP
from/IN
primarily/RB
a/DT
creator/NN
of/IN
advertising/NN
into/IN
one/CD
of/IN
Europe/NNP
's/POS
largest/JJS
buyers/NNS
of/IN
advertising/NN
time/NN
and/CC
space/NN
./.
It/PRP
also/RB
creates/VBZ
a/DT
newly/RB
merged/JJ
world-wide/JJ
ad/NN
agency/NN
controlled/VBN
by/IN
Eurocom/NNP
and/CC
headed/VBD
jointly/RB
by/IN
New/NNP
York/NNP
ad/NN
man/NN
Jerry/NNP
Della/NNP
Femina/NNP
and/CC
two/CD
top/JJ
WCRS/NNP
executives/NNS
./.
The/DT
merged/JJ
agency/NN
's/VBZ
admittedly/RB
ambitious/JJ
goal/NN
:/:
to/TO
become/VB
one/CD
of/IN
the/DT
world/NN
's/POS
10/CD
largest/JJS
agencies/NNS
,/,
while/IN
attracting/VBG
more/RBR
multinational/JJ
clients/NNS
than/IN
the/DT
agencies/NNS
were/VBD
able/JJ
to/TO
attract/VB
alone/RB
./.
WCRS/NNP
's/POS
restructuring/NN
reflects/VBZ
the/DT
growing/VBG
importance/NN
of/IN
media/NNS
buying/NN
in/IN
Europe/NNP
,/,
where/WRB
the/DT
only/JJ
way/NN
to/TO
get/VB
a/DT
good/JJ
price/NN
on/IN
advertising/NN
time/NN
and/CC
space/NN
is/VBZ
to/TO
buy/VB
it/PRP
in/IN
bulk/NN
./.
For/IN
Eurocom/NNP
,/,
meanwhile/RB
,/,
the/DT
move/NN
gives/VBZ
it/PRP
a/DT
strong/JJ
U.S./NNP
foothold/NN
in/IN
Della/NNP
Femina/NNP
,/,
and/CC
more/RBR
than/IN
quadruples/VBZ
the/DT
size/NN
of/IN
its/PRP$
ad/NN
agency/NN
business/NN
world-wide/RB
./.
It/PRP
also/RB
gives/VBZ
the/DT
outspoken/JJ
Mr./NNP
Della/NNP
Femina/NNP
--/:
who/WP
often/RB
generates/VBZ
as/IN
much/JJ
publicity/NN
for/IN
himself/PRP
as/IN
for/IN
his/PRP$
clients/NNS
--/:
an/DT
international/JJ
platform/NN
that/IN
he/PRP
most/RBS
certainly/RB
wo/MD
n't/RB
be/VB
loath/JJ
to/TO
use/VB
./.
According/VBG
to/TO
terms/NNS
,/,
WCRS/NNP
will/MD
pay/VB
2.02/CD
billion/CD
French/JJ
francs/NNS
$/$
318.6/CD
million/CD
the/DT
50/CD
%/NN
it/PRP
does/VBZ
n't/RB
already/RB
own/JJ
of/IN
Carat/NNP
Holding/NNP
S.A./NNP
,/,
one/CD
of/IN
Europe/NNP
's/POS
largest/JJS
media/NNS
buyers/NNS
./.
Meanwhile/RB
,/,
Eurocom/NNP
,/,
which/WDT
had/VBD
held/VBN
20/CD
%/NN
of/IN
WCRS/NNP
's/POS
ad/NN
unit/NN
,/,
will/MD
pay/VB
#/#
43.5/CD
million/CD
$/$
68.5/CD
million/CD
its/PRP$
stake/NN
to/TO
60/CD
%/NN
./.
That/DT
price/NN
also/RB
covers/VBZ
Eurocom/NNP
raising/VBG
to/TO
60/CD
%/NN
its/PRP$
51/CD
%/NN
stake/NN
in/IN
Europe/NNP
's/POS
Belier/NNP
Group/NNP
,/,
a/DT
joint/JJ
venture/NN
ad/NN
agency/NN
network/NN
it/PRP
owns/VBZ
with/IN
WCRS/NNP
./.
Eurocom/NNP
will/MD
also/RB
have/VB
the/DT
right/NN
to/TO
buy/VB
the/DT
remaining/VBG
40/CD
%/NN
of/IN
the/DT
merged/JJ
ad/NN
agency/NN
group/NN
in/IN
six/CD
years/NNS
./.
The/DT
transaction/NN
places/VBZ
the/DT
three/CD
executives/NNS
squarely/RB
at/IN
the/DT
helm/NN
of/IN
a/DT
major/JJ
agency/NN
with/IN
the/DT
rather/RB
unwieldy/JJ
name/NN
of/IN
Eurocom/NNP
WCRS/NNP
Della/NNP
Femina/NNP
Ball/NNP
Ltd./NNP
,/,
or/CC
EWDB/NNP
./.
The/DT
merged/JJ
agency/NN
will/MD
include/VB
Della/NNP
Femina/NNP
McNamee/NNP
based/VBN
in/IN
New/NNP
York/NNP
,/,
Eurocom/NNP
's/POS
various/JJ
agencies/NNS
in/IN
France/NNP
,/,
the/DT
Belier/NNP
Group/NNP
in/IN
Europe/NNP
and/CC
WCRS/NNP
's/POS
other/JJ
advertising/NN
and/CC
direct/JJ
marketing/NN
operations/NNS
./.
Mr./NNP
Della/NNP
Femina/NNP
will/MD
be/VB
joint/JJ
chairman/NN
with/IN
former/JJ
WCRS/NNP
executive/NN
Robin/NNP
Wight/NNP
./.
Both/DT
will/MD
report/VB
to/TO
Tim/NNP
Breene/NNP
,/,
a/DT
former/JJ
WCRS/NNP
executive/NN
who/WP
will/MD
be/VB
chief/JJ
executive/NN
officer/NN
at/IN
the/DT
new/JJ
agency/NN
./.
In/IN
an/DT
interview/NN
in/IN
New/NNP
York/NNP
,/,
Mr./NNP
Breene/NNP
,/,
fresh/JJ
from/IN
a/DT
Concorde/NNP
flight/NN
from/IN
Paris/NNP
where/WRB
executives/NNS
had/VBD
worked/VBN
through/IN
most/JJS
of/IN
the/DT
night/NN
,/,
outlined/VBD
big/JJ
plans/NNS
for/IN
the/DT
new/JJ
agency/NN
./.
``/``
Our/PRP$
goal/NN
is/VBZ
to/TO
develop/VB
quite/RB
rapidly/RB
to/TO
a/DT
top-10/JJ
position/NN
.../:
by/IN
the/DT
end/NN
of/IN
three/CD
years/NNS
from/IN
now/RB
./.
It/PRP
implies/VBZ
very/RB
dramatic/JJ
growth/NN
,/,
''/''
he/PRP
said/VBD
./.
He/PRP
added/VBD
that/IN
Eurocom/NNP
and/CC
WCRS/NNP
had/VBD
agreed/VBN
to/TO
provide/VB
a/DT
development/NN
fund/NN
of/IN
#/#
100/CD
million/CD
for/IN
acquisitions/NNS
./.
The/DT
new/JJ
agency/NN
group/NN
is/VBZ
already/RB
in/IN
discussions/NNS
about/IN
a/DT
possible/JJ
purchase/NN
in/IN
Spain/NNP
,/,
while/IN
Mr./NNP
Breene/NNP
said/VBD
it/PRP
also/RB
plans/VBZ
to/TO
make/VB
acquisitions/NNS
in/IN
Scandinavia/NNP
,/,
Germany/NNP
and/CC
elsewhere/RB
./.
Cracking/VBG
the/DT
top/NN
10/CD
within/IN
three/CD
years/NNS
will/MD
be/VB
difficult/JJ
at/IN
best/RB
./.
Della/NNP
Femina/NNP
had/VBD
billings/NNS
of/IN
just/RB
$/$
660/CD
million/CD
last/JJ
year/NN
and/CC
ranked/VBD
as/IN
the/DT
U.S./NNP
's/POS
24th-largest/JJ
ad/NN
agency/NN
./.
The/DT
merged/JJ
company/NN
that/IN
it/PRP
now/RB
becomes/VBZ
part/NN
of/IN
will/MD
have/VB
billings/NNS
of/IN
just/RB
more/JJR
than/IN
$/$
2.6/CD
billion/CD
--/:
most/JJS
of/IN
that/DT
in/IN
Europe/NNP
--/:
bringing/VBG
it/PRP
to/TO
about/IN
14th/JJ
world-wide/RB
./.
To/TO
make/VB
it/PRP
to/TO
top-10/JJ
status/NN
,/,
it/PRP
would/MD
have/VB
to/TO
leapfrog/VB
over/IN
such/JJ
formidable/JJ
forces/NNS
as/IN
Grey/NNP
Advertising/NNP
,/,
D'Arcy/NNP
Masius/NNP
Benton/NNP
&/CC
Bowles/NNP
and/CC
Omnicom/NNP
's/POS
DDB/NNP
Needham/NNP
./.
The/DT
merged/JJ
agency/NN
's/POS
game/NN
plan/NN
to/TO
attract/VB
multinational/JJ
packaged-goods/NNS
advertisers/NNS
may/MD
prove/VB
equally/RB
difficult/JJ
./.
When/WRB
WCRS/NNP
created/VBD
Della/NNP
Femina/NNP
McNamee/NNP
out/IN
of/IN
the/DT
merger/NN
of/IN
three/CD
smaller/JJR
agency/NN
units/NNS
in/IN
1988/CD
,/,
it/PRP
said/VBD
it/PRP
did/VBD
so/RB
in/IN
order/NN
to/TO
attract/VB
larger/JJR
clients/NNS
,/,
especially/RB
packaged-goods/NNS
companies/NNS
./.
Since/IN
then/RB
,/,
Della/NNP
Femina/NNP
won/VBD
Pan/NNP
Am/VBP
as/IN
an/DT
international/JJ
client/NN
and/CC
also/RB
does/VBZ
work/NN
for/IN
a/DT
few/JJ
packaged-goods/NNS
clients/NNS
,/,
including/VBG
Dow/NNP
Chemical/NNP
Co./NNP
's/POS
Saran/NNP
Wrap/NNP
./.
But/CC
major/JJ
packaged-goods/NNS
players/NNS
of/IN
the/DT
world/NN
--/:
such/JJ
as/IN
Procter/NNP
&/CC
Gamble/NNP
,/,
Colgate-Palmolive/NNP
and/CC
Unilever/NNP
--/:
have/VBP
steadfastly/RB
eluded/VBD
the/DT
agency/NN
./.
``/``
Three/CD
of/IN
our/PRP$
favorite/JJ
names/NNS
,/,
''/''
Mr./NNP
Della/NNP
Femina/NNP
calls/VBZ
that/DT
roster/NN
,/,
adding/VBG
hopefully/RB
,/,
``/``
We/PRP
're/VBP
a/DT
much/RB
more/RBR
attractive/JJ
agency/NN
to/TO
large/JJ
multinationals/NNS
today/NN
than/IN
we/PRP
were/VBD
yesterday/NN
./.
''/''
Still/RB
,/,
the/DT
restructuring/NN
could/MD
create/VB
one/CD
of/IN
the/DT
most/RBS
powerful/JJ
alliances/NNS
between/IN
advertising/NN
and/CC
media-buying/JJ
firms/NNS
that/IN
Europe/NNP
has/VBZ
seen/VBN
./.
As/IN
part/NN
of/IN
the/DT
restructuring/NN
,/,
WCRS/NNP
and/CC
Eurocom/NNP
said/VBD
they/PRP
will/MD
look/VB
for/IN
ways/NNS
to/TO
combine/VB
their/PRP$
media/NNS
buying/NN
across/IN
Europe/NNP
./.
What/WP
's/VBZ
more/JJR
,/,
both/DT
Eurocom/NNP
and/CC
brothers/NNS
Francis/NNP
and/CC
Gilbert/NNP
Gross/NNP
,/,
who/WP
founded/VBD
Carat/NNP
,/,
will/MD
acquire/VB
14.99/CD
%/JJ
stakes/NNS
in/IN
WCRS/NNP
Group/NNP
,/,
creating/VBG
a/DT
powerful/JJ
link/NN
between/IN
Eurocom/NNP
and/CC
Carat/NNP
./.
Carat/NNP
will/MD
receive/VB
its/PRP$
WCRS/NNP
stake/NN
as/IN
part/NN
of/IN
payment/NN
for/IN
the/DT
50/CD
%/NN
Carat/NNP
stake/NN
that/IN
WCRS/NNP
is/VBZ
buying/VBG
,/,
while/IN
Eurocom/NNP
said/VBD
it/PRP
expects/VBZ
to/TO
pay/VB
about/IN
#/#
32/CD
million/CD
for/IN
its/PRP$
WCRS/NNP
stake/NN
./.
Mr./NNP
Della/NNP
Femina/NNP
says/VBZ
he/PRP
plans/VBZ
to/TO
remain/VB
heavily/RB
involved/JJ
in/IN
the/DT
creative/JJ
product/NN
at/IN
the/DT
world-wide/JJ
agency/NN
,/,
serving/VBG
as/IN
a/DT
sort/NN
of/IN
``/``
creative/JJ
conscience/NN
./.
''/''
Louise/NNP
McNamee/NNP
,/,
Della/NNP
Femina/NNP
's/POS
president/NN
,/,
will/MD
continue/VB
running/VBG
the/DT
U.S./NNP
agency/NN
day-to-day/JJ
./.
They/PRP
and/CC
other/JJ
top/JJ
executives/NNS
signed/VBD
long-term/JJ
employment/NN
contracts/NNS
and/CC
Mr./NNP
Della/NNP
Femina/NNP
will/MD
receive/VB
an/DT
additional/JJ
multimillion-dollar/JJ
sum/NN
,/,
which/WDT
some/DT
industry/NN
executives/NNS
pegged/VBD
at/IN
about/IN
$/$
10/CD
million/CD
./.
WCRS/NNP
Group/NNP
,/,
for/IN
its/PRP$
part/NN
,/,
will/MD
now/RB
be/VB
able/JJ
to/TO
follow/VB
its/PRP$
longstanding/JJ
plan/NN
of/IN
becoming/VBG
``/``
a/DT
holding/VBG
company/NN
for/IN
a/DT
series/NN
of/IN
media-related/JJ
businesses/NNS
,/,
''/''
said/VBD
Peter/NNP
Scott/NNP
,/,
the/DT
firm/NN
's/POS
chief/JJ
executive/NN
./.
In/IN
addition/NN
to/TO
Carat/NNP
,/,
WCRS/NNP
will/MD
hold/VB
onto/IN
its/PRP$
public/JJ
relations/NNS
,/,
TV/NN
programming/NN
and/CC
other/JJ
businesses/NNS
./.
WCRS/NNP
says/VBZ
its/PRP$
debt/NN
will/MD
be/VB
cut/VBN
to/TO
#/#
24/CD
million/CD
from/IN
#/#
66/CD
million/CD
as/IN
a/DT
result/NN
of/IN
the/DT
transaction/NN
./.
For/IN
Carat/NNP
,/,
meanwhile/RB
,/,
the/DT
alliance/NN
with/IN
Eurocom/NNP
and/CC
WCRS/NNP
is/VBZ
intended/VBN
to/TO
strengthen/VB
its/PRP$
own/JJ
push/NN
outside/IN
France/NNP
./.
Carat/NNP
's/POS
Gross/NNP
brothers/NNS
invented/VBD
the/DT
idea/NN
of/IN
large-scale/JJ
buying/NN
of/IN
media/NNS
space/NN
./.
By/IN
buying/VBG
the/DT
space/NN
in/IN
bulk/NN
,/,
they/PRP
obtain/VBP
discounts/NNS
as/RB
high/JJ
as/IN
50/CD
%/NN
,/,
which/WDT
they/PRP
can/MD
pass/VB
on/RB
to/TO
customers/NNS
./.
They/PRP
thus/RB
have/VBP
won/VBN
the/DT
French/JJ
space-buying/NN
business/NN
of/IN
such/JJ
advertising/NN
giants/NNS
as/IN
Coca-Cola/NNP
Co./NNP
,/,
Fiat/NNP
S.p/NNP
./.
A./NNP
,/,
Gillette/NNP
and/CC
Kodak/NNP
./.
But/CC
now/RB
,/,
other/JJ
agencies/NNS
are/VBP
getting/VBG
into/IN
the/DT
business/NN
with/IN
their/PRP$
own/JJ
competing/JJ
media-buying/JJ
groups/NNS
--/:
and/CC
Carat/NNP
wants/VBZ
to/TO
expand/VB
to/TO
the/DT
rest/NN
of/IN
Europe/NNP
./.
To/TO
help/VB
finance/VB
the/DT
Carat/NNP
purchase/NN
,/,
WCRS/NNP
said/VBD
it/PRP
plans/VBZ
an/DT
issue/NN
of/IN
Euroconvertible/JJ
preferred/JJ
shares/NNS
once/IN
the/DT
market/NN
settles/VBZ
down/RB
./.
But/CC
WCRS/NNP
added/VBD
that/IN
``/``
in/IN
the/DT
light/NN
of/IN
the/DT
current/JJ
uncertainty/NN
in/IN
the/DT
equity/NN
markets/NNS
,/,
''/''
it/PRP
has/VBZ
arranged/VBN
medium-term/JJ
debt/NN
financing/NN
,/,
which/WDT
would/MD
be/VB
underwritten/VBN
by/IN
Samuel/NNP
Montagu/NNP
&/CC
Co./NNP
Ltd/NNP
./.
Earthquake/NN
's/POS
Damage/NN
Tuesday/NNP
's/POS
earthquake/NN
brought/VBD
the/DT
San/NNP
Francisco/NNP
ad/NN
scene/NN
to/TO
a/DT
screeching/VBG
halt/NN
yesterday/NN
,/,
with/IN
only/RB
a/DT
few/JJ
staffers/NNS
showing/VBG
up/RB
at/IN
their/PRP$
offices/NNS
,/,
mainly/RB
to/TO
survey/VB
the/DT
damage/NN
or/CC
to/TO
wring/VB
their/PRP$
hands/NNS
about/IN
imminent/JJ
new-business/JJ
presentations/NNS
./.
While/IN
no/DT
agencies/NNS
reported/VBD
injuries/NNS
to/TO
employees/NNS
,/,
the/DT
quake/NN
damaged/VBD
the/DT
offices/NNS
of/IN
J./NNP
Walter/NNP
Thompson/NNP
,/,
Chiat\/Day\/Mojo/NNP
and/CC
DDB/NNP
Needham/NNP
,/,
among/IN
others/NNS
,/,
spokesmen/NNS
for/IN
those/DT
agencies/NNS
said/VBD
./.
Staffers/NNS
at/IN
Thompson/NNP
,/,
whose/WP$
offices/NNS
are/VBP
in/IN
the/DT
ultramodern/JJ
Embarcadero/NNP
Center/NNP
,/,
watched/VBD
pictures/NNS
drop/VB
from/IN
the/DT
walls/NNS
and/CC
then/RB
felt/VBD
the/DT
skyscraper/NN
sway/VB
seven/CD
to/TO
eight/CD
feet/NNS
,/,
according/VBG
to/TO
a/DT
spokeswoman/NN
./.
Plaster/NN
fell/VBD
and/CC
windows/NNS
were/VBD
broken/VBN
at/IN
Chiat\/Day\/Mojo/NNP
,/,
a/DT
spokesman/NN
for/IN
that/DT
agency/NN
said/VBD
./.
Late/JJ
yesterday/NN
afternoon/NN
,/,
DDB/NNP
Needham/NNP
executives/NNS
were/VBD
scrambling/VBG
to/TO
figure/VB
out/RB
what/WP
to/TO
do/VB
about/IN
a/DT
new/JJ
business/NN
presentation/NN
that/WDT
had/VBD
been/VBN
scheduled/VBN
for/IN
today/NN
,/,
a/DT
spokesman/NN
said/VBD
./.
DDB/NNP
Needham/NNP
's/POS
office/NN
building/NN
may/MD
have/VB
sustained/VBN
structural/JJ
damage/NN
,/,
the/DT
spokesman/NN
added/VBD
./.
``/``
All/DT
operations/NNS
have/VBP
stopped/VBN
,/,
''/''
he/PRP
said/VBD
./.
A/DT
number/NN
of/IN
agencies/NNS
,/,
including/VBG
Thompson/NNP
and/CC
Foote/NNP
,/,
Cone/NNP
&/CC
Belding/NNP
,/,
said/VBD
some/DT
employees/NNS
who/WP
live/VBP
outside/IN
of/IN
San/NNP
Francisco/NNP
,/,
fearful/JJ
that/IN
they/PRP
would/MD
n't/RB
be/VB
able/JJ
to/TO
get/VB
home/RB
,/,
spent/VBD
the/DT
night/NN
at/IN
the/DT
agency/NN
./.
Ad/NN
Notes/NNS
.../:
./.
NEW/NN
ACCOUNT/NN
:/:
Chesebrough-Pond/NNP
's/POS
Inc./NNP
,/,
Greenwich/NNP
,/,
Conn./NNP
,/,
awarded/VBD
its/PRP$
Faberge/NNP
hair/NN
care/NN
accounts/NNS
to/TO
J./NNP
Walter/NNP
Thompson/NNP
,/,
New/NNP
York/NNP
./.
Thompson/NNP
,/,
a/DT
unit/NN
of/IN
WPP/NNP
Group/NNP
,/,
will/MD
handle/VB
Faberge/NNP
Organic/NNP
shampoo/NN
and/CC
conditioner/NN
and/CC
Aqua/NNP
Net/NNP
hairspray/NN
./.
The/DT
accounts/NNS
,/,
which/WDT
billed/VBD
about/IN
$/$
7/CD
million/CD
last/JJ
year/NN
,/,
according/VBG
to/TO
Leading/VBG
National/NNP
Advertisers/NNPS
,/,
were/VBD
previously/RB
handled/VBN
at/IN
Bozell/NNP
,/,
New/NNP
York/NNP
./.
WHO/WP
'S/VBZ
NEWS/NNP
:/:
William/NNP
Morrissey/NNP
,/,
44/CD
,/,
was/VBD
named/VBN
executive/NN
vice/NN
president/NN
,/,
world-wide/JJ
director/NN
of/IN
McCann/NNP
Direct/NNP
,/,
the/DT
direct/JJ
marketing/NN
unit/NN
of/IN
Interpublic/NNP
Group/NNP
's/POS
McCann-Erickson/NNP
agency/NN
./.
He/PRP
had/VBD
been/VBN
president/NN
and/CC
chief/NN
operating/NN
officer/NN
of/IN
Ogilvy/NNP
&/CC
Mather/NNP
Direct/NNP
./.
BOZELL/NNP
:/:
Los/NNP
Angeles/NNP
will/MD
be/VB
the/DT
site/NN
of/IN
a/DT
new/JJ
entertainment/NN
division/NN
for/IN
the/DT
ad/NN
agency/NN
./.
The/DT
division/NN
will/MD
be/VB
headed/VBN
by/IN
Dick/NNP
Porter/NNP
,/,
who/WP
returns/VBZ
to/TO
Bozell/NNP
after/IN
being/VBG
vice/NN
president/NN
of/IN
media/NNS
at/IN
MGM/NNP
./.
AC&R/NNP
ADVERTISING/NNP
:/:
The/DT
agency/NN
's/POS
three/CD
California/NNP
offices/NNS
,/,
previously/RB
called/VBN
AC&R\/CCL/NNP
Advertising/NNP
,/,
will/MD
now/RB
be/VB
called/VBN
AC&R/NNP
Advertising/NNP
to/TO
match/VB
the/DT
name/NN
of/IN
its/PRP$
New/NNP
York/NNP
office/NN
./.
AC&R/NNP
Advertising/NNP
is/VBZ
a/DT
unit/NN
of/IN
Saatchi/NNP
&/CC
Saatchi/NNP
Co/NNP
./.
NEW/JJ
BEER/NN
:/:
Sibra/NNP
Products/NNPS
Inc./NNP
,/,
Greenwich/NNP
,/,
Conn./NNP
,/,
awarded/VBD
its/PRP$
Cardinal/NNP
Amber/NNP
Light/NNP
beer/NN
account/NN
to/TO
Heidelberg/NNP
&/CC
Associates/NNPS
,/,
New/NNP
York/NNP
./.
Budget/NN
is/VBZ
set/VBN
at/IN
$/$
1.5/CD
million/CD
./.
The/DT
new/JJ
beer/NN
,/,
introduced/VBN
this/DT
week/NN
at/IN
a/DT
liquor/NN
industry/NN
convention/NN
,/,
is/VBZ
imported/VBN
from/IN
Switzerland/NNP
's/POS
Cardinal/NNP
brewery/NN
./.
Heidelberg/NNP
's/POS
first/JJ
ads/NNS
for/IN
the/DT
brand/NN
,/,
which/WDT
Sibra/NNP
says/VBZ
will/MD
compete/VB
with/IN
imported/VBN
light/JJ
beer/NN
leader/NN
Amstel/NNP
Light/NNP
,/,
feature/VBP
the/DT
line/NN
``/``
The/DT
best/JJS
tasting/NN
light/JJ
beer/NN
you/PRP
've/VBP
ever/RB
seen/VBN
./.
''/''
Diamond-Star/NNP
Motors/NNPS
Corp./NNP
,/,
a/DT
joint/JJ
venture/NN
of/IN
Chrysler/NNP
Corp./NNP
and/CC
Mitsubishi/NNP
Motors/NNPS
Corp./NNP
said/VBD
it/PRP
will/MD
begin/VB
shipping/VBG
Mitsubishi/NNP
Eclipse/NNP
cars/NNS
to/TO
Japan/NNP
next/JJ
week/NN
,/,
emulating/VBG
other/JJ
Japanese/JJ
auto/NN
ventures/NNS
shipping/VBG
U.S.-built/JJ
vehicles/NNS
back/RB
to/TO
Japan/NNP
./.
Diamond-Star/NNP
said/VBD
it/PRP
will/MD
export/VB
about/IN
1,500/CD
Eclipse/NNP
cars/NNS
to/TO
Japan/NNP
by/IN
year/NN
's/POS
end/NN
./.
Honda/NNP
Motor/NNP
Co./NNP
,/,
the/DT
first/JJ
Japanese/JJ
auto/NN
maker/NN
to/TO
ship/NN
cars/NNS
to/TO
Japan/NNP
from/IN
the/DT
U.S./NNP
,/,
is/VBZ
now/RB
exporting/VBG
more/JJR
than/IN
5,000/CD
Accord/NNP
Coupes/NNP
a/DT
year/NN
from/IN
its/PRP$
Marysville/NNP
,/,
Ohio/NNP
,/,
factory/NN
./.
One/CD
of/IN
the/DT
most/RBS
remarkable/JJ
features/NNS
of/IN
the/DT
forced/JJ
marches/NNS
of/IN
the/DT
ethnic/JJ
Turks/NNPS
out/IN
of/IN
Bulgaria/NNP
over/IN
the/DT
past/JJ
five/CD
months/NNS
has/VBZ
been/VBN
the/DT
lack/NN
of/IN
international/JJ
attention/NN
./.
The/DT
deportation/NN
of/IN
more/JJR
than/IN
315,000/CD
men/NNS
,/,
women/NNS
and/CC
children/NNS
by/IN
the/DT
Bulgarian/JJ
regime/NN
adds/VBZ
up/RB
to/TO
one/CD
of/IN
the/DT
largest/JJS
migrations/NNS
seen/VBN
in/IN
the/DT
postwar/JJ
years/NNS
./.
Yet/CC
some/DT
people/NNS
are/VBP
advancing/VBG
a/DT
chilling/VBG
casuistry/NN
:/:
that/IN
what/WP
we/PRP
are/VBP
seeing/VBG
is/VBZ
somehow/RB
the/DT
understandable/JJ
result/NN
of/IN
the/DT
historical/JJ
sins/NNS
committed/VBN
by/IN
the/DT
Turks/NNPS
in/IN
the/DT
16th/JJ
century/NN
./.
Today/NN
's/POS
Turks/NNPS
in/IN
Bulgaria/NNP
,/,
in/IN
other/JJ
words/NNS
,/,
deserve/VBP
what/WP
is/VBZ
coming/VBG
to/TO
them/PRP
four/CD
centuries/NNS
later/RB
./.
As/IN
if/IN
this/DT
were/VBD
n't/RB
enough/RB
,/,
the/DT
Senate/NNP
Judiciary/NNP
Committee/NNP
is/VBZ
getting/VBG
into/IN
the/DT
act/NN
./.
On/IN
Tuesday/NNP
it/PRP
approved/VBD
Senator/NNP
Bob/NNP
Dole/NNP
's/POS
proposed/VBN
commemorative/NN
resolution/NN
designating/VBG
April/NNP
24/CD
,/,
1990/CD
,/,
as/IN
the/DT
``/``
National/JJ
Day/NN
of/IN
Remembrance/NN
of/IN
the/DT
75th/JJ
Anniversary/NN
of/IN
the/DT
Armenian/JJ
Genocide/NN
of/IN
1915-1923/CD
,/,
''/''
suffered/VBN
at/IN
the/DT
hands/NNS
of/IN
the/DT
warring/VBG
Ottoman/NNP
Empire/NNP
./.
There/EX
can/MD
be/VB
no/RB
quibbling/VBG
that/IN
the/DT
Armenians/NNPS
endured/VBD
terrible/JJ
suffering/NN
,/,
but/CC
one/NN
has/VBZ
to/TO
wonder/VB
what/WP
possible/RB
good/JJ
such/PDT
a/DT
resolution/NN
will/MD
achieve/VB
./.
It/PRP
puts/VBZ
great/JJ
strain/NN
on/IN
a/DT
longstanding/JJ
U.S./NNP
friendship/NN
with/IN
Turkey/NNP
,/,
a/DT
country/NN
that/WDT
has/VBZ
been/VBN
one/CD
of/IN
America/NNP
's/POS
strongest/JJS
allies/NNS
in/IN
NATO/NNP
./.
The/DT
resolution/NN
also/RB
comes/VBZ
at/IN
a/DT
time/NN
when/WRB
Turkey/NNP
has/VBZ
been/VBN
seeking/VBG
help/NN
from/IN
the/DT
United/NNP
States/NNPS
in/IN
resolving/VBG
its/PRP$
Bulgarian/JJ
emigration/NN
controversy/NN
and/CC
pursuing/VBG
democratic/JJ
reforms/NNS
that/WDT
may/MD
lead/VB
to/TO
membership/NN
in/IN
the/DT
European/NNP
Community/NNP
./.
Turkey/NNP
has/VBZ
been/VBN
fighting/VBG
its/PRP$
past/NN
for/IN
years/NNS
,/,
and/CC
thus/RB
far/RB
has/VBZ
been/VBN
only/RB
partially/RB
successful/JJ
./.
Must/MD
it/PRP
now/RB
accept/VB
that/IN
one/CD
of/IN
its/PRP$
strongest/JJS
allies/NNS
blames/VBZ
it/PRP
for/IN
the/DT
genocide/NN
of/IN
another/DT
people/NNS
?/.
Such/JJ
sentiment/NN
only/RB
encourages/VBZ
the/DT
adverse/JJ
feelings/NNS
toward/IN
Turkey/NNP
that/WDT
surfaced/VBD
when/WRB
Turkey/NNP
asked/VBD
for/IN
assistance/NN
in/IN
dealing/VBG
with/IN
its/PRP$
Bulgarian/JJ
emigration/NN
crisis/NN
./.
Mr./NNP
Dole/NNP
's/POS
odd/JJ
effort/NN
notwithstanding/IN
,/,
most/JJS
of/IN
Turkey/NNP
's/POS
political/JJ
problems/NNS
lie/VBP
with/IN
the/DT
Europeans/NNPS
./.
Part/NN
of/IN
the/DT
problem/NN
some/DT
Europeans/NNPS
have/VBP
with/IN
Turkey/NNP
seems/VBZ
to/TO
stem/VB
from/IN
its/PRP$
location/NN
--/:
Turkey/NNP
is/VBZ
n't/RB
really/RB
part/NN
of/IN
Europe/NNP
./.
Why/WRB
,/,
they/PRP
wonder/VBP
,/,
should/MD
it/PRP
belong/VB
to/TO
the/DT
EC/NNP
?/.
Another/DT
anti-Turkish/JJ
hook/NN
is/VBZ
the/DT
Islamic/JJ
faith/NN
of/IN
the/DT
majority/NN
of/IN
the/DT
Turkish/JJ
people/NNS
:/:
Turkey/NNP
,/,
we/PRP
are/VBP
told/VBN
,/,
is/VBZ
not/RB
a/DT
Christian/JJ
nation/NN
;/:
its/PRP$
people/NNS
simply/RB
wo/MD
n't/RB
fit/VB
in/RB
with/IN
the/DT
Western/JJ
European/JJ
Judeo-Christian/JJ
tradition/NN
./.
It/PRP
's/VBZ
when/WRB
these/DT
rationalizations/NNS
fall/VBP
on/IN
deaf/JJ
ears/NNS
that/IN
the/DT
old/JJ
standby/NN
of/IN
retribution/NN
for/IN
treatment/NN
at/IN
the/DT
hands/NNS
of/IN
the/DT
Ottoman/NNP
Empire/NNP
comes/VBZ
to/TO
the/DT
fore/NN
./.
No/DT
one/NN
has/VBZ
to/TO
accept/VB
the/DT
sins/NNS
of/IN
the/DT
Ottoman/NNP
Empire/NNP
to/TO
reject/VB
that/DT
argument/NN
./.
Turkey/NNP
in/IN
any/DT
event/NN
is/VBZ
long/JJ
past/IN
it/PRP
./.
The/DT
country/NN
has/VBZ
in/IN
recent/JJ
years/NNS
accepted/VBN
more/JJR
than/IN
500,000/CD
refugees/NNS
from/IN
at/IN
least/JJS
four/CD
bordering/VBG
nations/NNS
./.
Kurds/NNPS
,/,
suffering/VBG
what/WP
many/JJ
people/NNS
consider/VBP
to/TO
be/VB
a/DT
current/JJ
extermination/NN
campaign/NN
at/IN
the/DT
hands/NNS
of/IN
Syria/NNP
,/,
Iran/NNP
and/CC
Iraq/NNP
have/VBP
inundated/VBN
eastern/JJ
Turkey/NNP
./.
Now/RB
it/PRP
is/VBZ
their/PRP$
fellow/NN
Turks/NNPS
arriving/VBG
as/IN
refugees/NNS
from/IN
Bulgaria/NNP
./.
The/DT
Turkish/JJ
refugee/NN
tragedy/NN
and/CC
the/DT
ongoing/JJ
crisis/NN
can/MD
not/RB
be/VB
ignored/VBN
and/CC
shuttled/VBN
off/RB
to/TO
that/DT
notorious/JJ
dustbin/NN
of/IN
history/NN
that/WDT
has/VBZ
become/VBN
so/RB
convenient/JJ
recently/RB
./.
Surely/RB
,/,
the/DT
past/JJ
suffering/NN
of/IN
any/DT
people/NNS
at/IN
any/DT
time/NN
can/MD
not/RB
be/VB
simply/RB
filed/VBN
away/RB
and/CC
forgotten/VBN
./.
But/CC
what/WP
the/DT
Senate/NNP
Judiciary/NNP
Committee/NNP
has/VBZ
done/VBN
in/IN
supporting/VBG
the/DT
strongly/RB
worded/VBN
Armenian/JJ
resolution/NN
achieves/VBZ
no/DT
useful/JJ
end/NN
;/:
it/PRP
merely/RB
produces/VBZ
more/JJR
controversy/NN
and/CC
embittered/JJ
memories/NNS
./.
Congress/NNP
has/VBZ
enough/JJ
difficulty/NN
dealing/VBG
with/IN
the/DT
realities/NNS
of/IN
the/DT
world/NN
as/IN
it/PRP
currently/RB
exists/VBZ
./.
Bulgaria/NNP
's/POS
government/NN
has/VBZ
been/VBN
behaving/VBG
beyond/IN
the/DT
pale/NN
for/IN
months/NNS
,/,
and/CC
the/DT
U.S./NNP
does/VBZ
its/PRP$
values/NNS
no/DT
credit/NN
by/IN
ignoring/VBG
that/IN
while/IN
casting/VBG
its/PRP$
votes/NNS
into/IN
the/DT
past/NN
./.
Many/JJ
in/IN
Washington/NNP
say/VBP
President/NNP
Bush/NNP
will/MD
have/VB
to/TO
raise/VB
taxes/NNS
to/TO
pay/VB
for/IN
his/PRP$
war/NN
on/IN
drugs/NNS
./.
We/PRP
have/VBP
a/DT
better/JJR
idea/NN
:/:
Dismantle/VB
HUD/NNP
to/TO
pay/VB
for/IN
the/DT
war/NN
on/IN
drugs/NNS
./.
Housing/NNP
and/CC
Urban/NNP
Development/NNP
's/POS
budget/NN
is/VBZ
$/$
17/CD
billion/CD
./.
From/IN
what/WP
we/PRP
and/CC
the/DT
nation/NN
have/VBP
been/VBN
reading/VBG
,/,
the/DT
money/NN
is/VBZ
n't/RB
being/VBG
spent/VBN
very/RB
well/RB
./.
The/DT
single/JJ
most/RBS
important/JJ
contribution/NN
the/DT
government/NN
could/MD
make/VB
now/RB
to/TO
help/VB
the/DT
poor/JJ
is/VBZ
to/TO
get/VB
the/DT
specter/NN
of/IN
drugs/NNS
out/IN
of/IN
their/PRP$
neighborhoods/NNS
./.
If/IN
that/DT
takes/VBZ
money/NN
,/,
take/VB
it/PRP
away/RB
from/IN
this/DT
discredited/JJ
federal/JJ
department/NN
./.
But/CC
of/IN
course/NN
the/DT
Democrats/NNPS
pillorying/VBG
HUD/NNP
in/IN
hearings/NNS
and/CC
in/IN
the/DT
press/NN
have/VBP
no/DT
such/JJ
solution/NN
in/IN
mind/NN
./.
Instead/RB
,/,
they/PRP
're/VBP
scrambling/VBG
to/TO
protect/VB
the/DT
very/JJ
programs/NNS
at/IN
the/DT
heart/NN
of/IN
the/DT
HUD/NNP
scandal/NN
./.
This/DT
month/NN
,/,
HUD/NNP
Secretary/NNP
Jack/NNP
Kemp/NNP
unveiled/VBD
a/DT
series/NN
of/IN
proposed/VBN
reforms/NNS
to/TO
improve/VB
management/NN
at/IN
HUD/NNP
./.
No/DT
doubt/NN
many/JJ
of/IN
his/PRP$
ideas/NNS
are/VBP
worthy/JJ
,/,
but/CC
ultimately/RB
he/PRP
is/VBZ
proposing/VBG
to/TO
make/VB
fundamentally/RB
flawed/JJ
programs/NNS
work/VB
slightly/RB
more/RBR
fairly/RB
and/CC
efficiently/RB
./.
Congress/NNP
is/VBZ
unlikely/JJ
to/TO
go/VB
even/RB
that/DT
far/RB
./.
Last/JJ
week/NN
,/,
Secretary/NNP
Kemp/NNP
ran/VBD
into/IN
a/DT
buzzsaw/NN
of/IN
criticism/NN
from/IN
House/NNP
Banking/NNP
Committee/NNP
members/NNS
./.
They/PRP
were/VBD
appalled/VBN
,/,
for/IN
instance/NN
,/,
that/IN
he/PRP
wanted/VBD
to/TO
target/VB
more/JJR
of/IN
the/DT
$/$
3/CD
billion/CD
Community/NNP
Development/NNP
Block/NNP
Grant/NNP
CDBG/NNP
program/NN
to/TO
low-income/JJ
projects/NNS
and/CC
zero/VB
out/RP
the/DT
notorious/JJ
``/``
discretionary/JJ
''/''
funds/NNS
that/WDT
have/VBP
allowed/VBN
HUD/NNP
officials/NNS
to/TO
steer/VB
contracts/NNS
to/TO
political/JJ
cronies/NNS
./.
These/DT
development/NN
grants/NNS
mainly/RB
enrich/VBP
developers/NNS
who/WP
want/VBP
to/TO
put/VB
up/RP
shopping/NN
centers/NNS
and/CC
parking/NN
garages/NNS
./.
They/PRP
also/RB
give/VBP
those/DT
in/IN
Congress/NNP
political/JJ
credit/NN
for/IN
bringing/VBG
home/NN
the/DT
pork/NN
,/,
and/CC
so/IN
they/PRP
are/VBP
popular/JJ
with/IN
such/JJ
Members/NNS
as/IN
Mary/NNP
Rose/NNP
Oakar/NNP
./.
Rep./NNP
Oakar/NNP
,/,
a/DT
Democrat/NNP
from/IN
Cleveland/NNP
,/,
wants/VBZ
a/DT
$/$
6.9/CD
million/CD
grant/NN
so/IN
Cleveland/NNP
can/MD
build/VB
an/DT
18-story/JJ
Rock/NNP
and/CC
Roll/NNP
Hall/NNP
of/IN
Fame/NNP
./.
She/PRP
says/VBZ
it/PRP
'd/MD
create/VB
600/CD
jobs/NNS
and/CC
bring/VB
Cleveland/NNP
tourist/NN
revenue/NN
./.
HUD/NNP
says/VBZ
the/DT
project/NN
does/VBZ
n't/RB
qualify/VB
,/,
and/CC
Mr./NNP
Kemp/NNP
says/VBZ
that/DT
rock/NN
'n'/CC
roll/NN
musicians/NNS
and/CC
the/DT
music/NN
industry/NN
ought/MD
to/TO
put/VB
up/RP
the/DT
money/NN
./.
At/IN
the/DT
hearing/NN
,/,
Rep./NNP
Oakar/NNP
started/VBD
wailing/VBG
about/IN
``/``
phoney/JJ
baloney/NN
regulations/NNS
''/''
that/WDT
would/MD
stand/VB
between/IN
her/PRP
and/CC
``/``
housing/NN
for/IN
downtown/NN
Cleveland/NN
./.
''/''
Rep./NNP
Chalmers/NNP
Wylie/NNP
,/,
an/DT
Ohio/NNP
Republican/NNP
,/,
rallied/VBD
to/TO
the/DT
cause/NN
:/:
``/``
I/PRP
think/VBP
the/DT
gentlelady/NN
is/VBZ
making/VBG
an/DT
important/JJ
statement/NN
./.
The/DT
implication/NN
that/IN
if/IN
a/DT
congressman/NN
calls/VBZ
about/IN
a/DT
project/NN
in/IN
his/PRP$
district/NN
there/EX
's/VBZ
something/NN
wrong/JJ
,/,
I/PRP
think/VBP
is/VBZ
most/RBS
unfortunate/JJ
./.
''/''
We/PRP
're/VBP
sure/RB
some/DT
theologian/NN
can/MD
explain/VB
the/DT
difference/NN
between/IN
what/WP
the/DT
Republican/JJ
consultants/NNS
have/VBP
been/VBN
doing/VBG
with/IN
HUD/NNP
and/CC
what/WP
these/DT
gentleladies/NNS
and/CC
gentlemen/NNS
want/VBP
to/TO
do/VB
with/IN
HUD/NNP
./.
Our/PRP$
view/NN
is/VBZ
that/DT
given/VBN
Congress/NNP
's/POS
attitude/NN
toward/IN
HUD/NNP
,/,
the/DT
place/NN
probably/RB
is/VBZ
beyond/IN
reform/NN
./.
For/IN
more/JJR
than/IN
50/CD
years/NNS
the/DT
federal/JJ
government/NN
has/VBZ
tried/VBN
various/JJ
ways/NNS
to/TO
provide/VB
housing/NN
for/IN
the/DT
poor/JJ
and/CC
revive/VB
cities/NNS
./.
In/IN
the/DT
process/NN
HUD/NNP
has/VBZ
wasted/VBN
untold/JJ
billions/NNS
,/,
created/VBN
slums/NNS
and/CC
invited/VBN
corruption/NN
./.
Much/RB
of/IN
HUD/NNP
's/POS
spending/NN
actually/RB
is/VBZ
disguised/VBN
welfare/NN
for/IN
developers/NNS
or/CC
the/DT
middle/JJ
class/NN
./.
That/DT
includes/VBZ
the/DT
CDBG/NNP
funds/NNS
and/CC
the/DT
Federal/NNP
Housing/NNP
Administration/NNP
,/,
which/WDT
loans/VBZ
out/RP
money/NN
for/IN
private/JJ
home/NN
mortgages/NNS
and/CC
has/VBZ
just/RB
been/VBN
discovered/VBN
to/TO
be/VB
$/$
4/CD
billion/CD
in/IN
the/DT
hole/NN
./.
Selling/VBG
the/DT
FHA/NNP
's/POS
loan/NN
portfolio/NN
to/TO
the/DT
highest/JJS
bidder/NN
would/MD
save/VB
the/DT
taxpayers/NNS
untold/JJ
billions/NNS
in/IN
future/JJ
losses/NNS
./.
Some/DT
HUD/NNP
money/NN
actually/RB
does/VBZ
trickle/VB
down/RB
to/TO
the/DT
poor/JJ
,/,
and/CC
zeroing/VBG
out/RP
housing/NN
middlemen/NNS
would/MD
free/VB
up/RP
more/JJR
money/NN
for/IN
public/JJ
housing/NN
tenants/NNS
to/TO
manage/VB
and/CC
even/VB
own/JJ
their/PRP$
units/NNS
./.
The/DT
rest/NN
ought/MD
to/TO
be/VB
used/VBN
to/TO
clean/VB
out/RP
drugs/NNS
from/IN
the/DT
neighbhorhoods/NNS
./.
Rival/JJ
gangs/NNS
have/VBP
turned/VBN
cities/NNS
into/IN
combat/NN
zones/NNS
./.
Even/RB
suburban/JJ
Prince/NNP
George/NNP
's/POS
County/NNP
,/,
Md./NNP
,/,
reported/VBD
last/JJ
week/NN
there/EX
have/VBP
been/VBN
a/DT
record/NN
96/CD
killings/NNS
there/RB
this/DT
year/NN
,/,
most/JJS
of/IN
them/PRP
drug-related/JJ
./.
Innocent/JJ
bystanders/NNS
often/RB
are/VBP
the/DT
victims/NNS
./.
A/DT
man/NN
in/IN
a/DT
wheelchair/NN
was/VBD
gunned/VBN
down/RB
in/IN
the/DT
crossfire/NN
of/IN
a/DT
Miami/NNP
drug/NN
battle/NN
./.
A/DT
three-year-old/JJ
Brooklyn/NNP
boy/NN
was/VBD
used/VBN
as/IN
a/DT
shield/NN
by/IN
a/DT
drug/NN
dealer/NN
./.
Decent/JJ
life/NN
in/IN
the/DT
inner/JJ
cities/NNS
wo/MD
n't/RB
be/VB
restored/VBN
unless/IN
the/DT
government/NN
reclaims/VBZ
the/DT
streets/NNS
from/IN
the/DT
drug/NN
gangs/NNS
./.
Until/IN
then/RB
,/,
the/DT
billions/NNS
HUD/NNP
spends/VBZ
on/IN
inner-city/JJ
housing/NN
simply/RB
is/VBZ
wasted/VBN
./.
It/PRP
's/VBZ
still/RB
unclear/JJ
whether/IN
Secretary/NNP
Kemp/NNP
wants/VBZ
to/TO
completely/RB
overhaul/VB
the/DT
engine/NN
room/NN
at/IN
HUD/NNP
or/CC
just/RB
tighten/VB
a/DT
few/JJ
screws/NNS
here/RB
and/CC
there/RB
./.
No/DT
doubt/NN
he/PRP
believes/VBZ
the/DT
place/NN
can/MD
be/VB
salvaged/VBN
./.
Having/VBG
seen/VBN
the/DT
hypocrisy/NN
with/IN
which/WDT
Congress/NNP
has/VBZ
addressed/VBN
the/DT
HUD/NNP
scandals/NNS
,/,
we/PRP
disagree/VBP
./.
It/PRP
's/VBZ
time/NN
to/TO
scrap/VB
the/DT
politically/RB
infested/JJ
spending/NN
machine/NN
HUD/NNP
has/VBZ
become/VB
and/CC
channel/VB
the/DT
resources/NNS
into/IN
the/DT
drug/NN
war/NN
./.
Randy/NNP
Delchamps/NNP
was/VBD
named/VBN
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
of/IN
this/DT
grocery/NN
chain/NN
./.
Mr./NNP
Delchamps/NNP
,/,
46/CD
years/NNS
old/JJ
,/,
succeeds/VBZ
A.F./NNP
Delchamps/NNP
Jr./NNP
,/,
who/WP
died/VBD
in/IN
a/DT
plane/NN
crash/NN
on/IN
Sunday/NNP
at/IN
the/DT
age/NN
of/IN
58/CD
./.
Randy/NNP
Delchamps/NNP
retains/VBZ
his/PRP$
position/NN
as/IN
president/NN
./.
Natural/JJ
upheavals/NNS
,/,
and/CC
most/RBS
particularly/RB
earthquakes/NNS
,/,
are/VBP
not/RB
only/JJ
horrible/JJ
realities/NNS
in/IN
and/CC
of/IN
themselves/PRP
,/,
but/CC
also/RB
symbols/NNS
through/IN
which/WDT
the/DT
state/NN
of/IN
a/DT
society/NN
can/MD
be/VB
construed/VBN
./.
The/DT
rubble/NN
after/IN
the/DT
Armenian/JJ
earthquake/NN
a/DT
year/NN
ago/RB
disclosed/VBD
,/,
quite/RB
literally/RB
,/,
a/DT
city/NN
whose/WP$
larger/JJR
structures/NNS
had/VBD
been/VBN
built/VBN
with/IN
sand/NN
./.
The/DT
extent/NN
of/IN
the/DT
disaster/NN
stemmed/VBD
from/IN
years/NNS
of/IN
chicanery/NN
and/CC
bureaucratic/JJ
indifference/NN
./.
The/DT
larger/JJR
parallel/NN
after/IN
the/DT
earthquake/NN
centered/VBN
south/RB
of/IN
San/NNP
Francisco/NNP
is/VBZ
surely/RB
with/IN
the/DT
state/NN
of/IN
the/DT
U.S./NNP
economy/NN
./.
Did/VBD
the/DT
stock-market/JJ
tremors/NNS
of/IN
Friday/NNP
,/,
Oct./NNP
13/CD
,/,
presage/VB
larger/JJR
fragility/NN
,/,
far/RB
greater/JJR
upheavals/NNS
?/.
Are/VBP
the/DT
engineering/NN
and/CC
architecture/NN
of/IN
the/DT
economy/NN
as/RB
vulnerable/JJ
as/IN
the/DT
spans/NNS
of/IN
the/DT
Bay/NNP
Bridge/NNP
?/.
The/DT
eerie/JJ
complacency/NN
of/IN
the/DT
Reagan-Bush/JJ
era/NN
has/VBZ
produced/VBN
Panglossian/JJ
paeans/NNS
about/IN
the/DT
present/JJ
perfection/NN
of/IN
U.S./NNP
economic/JJ
and/CC
social/JJ
arrangements/NNS
./.
A/DT
licensed/JJ
government/NN
intellectual/NN
,/,
Francis/NNP
Fukuyama/NNP
,/,
recently/RB
announced/VBD
in/IN
The/DT
National/NNP
Interest/NNP
that/IN
history/NN
is/VBZ
,/,
so/RB
to/TO
speak/VB
,/,
at/IN
an/DT
end/NN
since/IN
the/DT
course/NN
of/IN
human/JJ
progress/NN
has/VBZ
now/RB
culminated/VBN
in/IN
the/DT
glorious/JJ
full/JJ
stop/NN
of/IN
American/JJ
civilization/NN
./.
His/PRP$
observations/NNS
were/VBD
taken/VBN
seriously/RB
./.
But/CC
we/PRP
are/VBP
,/,
in/IN
reality/NN
,/,
witnessing/VBG
the/DT
continuing/VBG
decline/NN
of/IN
the/DT
political/JJ
economy/NN
of/IN
capitalism/NN
:/:
not/RB
so/RB
much/JJ
the/DT
end/NN
of/IN
history/NN
but/CC
the/DT
history/NN
of/IN
the/DT
end/NN
./.
The/DT
financial/JJ
equivalent/NN
of/IN
the/DT
sand/NN
used/VBN
by/IN
those/DT
Armenian/JJ
contractors/NNS
is/VBZ
junk/NN
bonds/NNS
and/CC
the/DT
leveraged/JJ
buy-outs/NNS
associated/VBN
with/IN
them/PRP
./.
Builders/NNS
get/VBP
away/RB
with/IN
using/VBG
sand/NN
and/CC
financiers/NNS
junk/NN
when/WRB
society/NN
decides/VBZ
it/PRP
's/VBZ
okay/JJ
,/,
necessary/JJ
even/RB
,/,
to/TO
look/VB
the/DT
other/JJ
way/NN
./.
And/CC
by/IN
the/DT
early/JJ
1980s/NNS
U.S./NNP
capitalists/NNS
had/VBD
ample/JJ
reason/NN
to/TO
welcome/VB
junk/NN
bonds/NNS
,/,
to/TO
look/VB
the/DT
other/JJ
way/NN
./.
By/IN
that/DT
time/NN
they/PRP
found/VBD
extremely/RB
low/JJ
profit/NN
rates/NNS
from/IN
non-financial/JJ
corporate/JJ
investment/NN
./.
Government/NN
statistics/NNS
in/IN
fact/NN
show/VBP
that/IN
the/DT
profit/NN
rate/NN
--/:
net/JJ
pretax/JJ
profits/NNS
divided/VBN
by/IN
capital/NN
stock/NN
--/:
peaked/VBD
in/IN
1965/CD
at/IN
17.2/CD
%/NN
./.
That/DT
same/JJ
calculation/NN
saw/VBD
profit/NN
rates/NNS
fall/VB
to/TO
4.6/CD
%/NN
in/IN
the/DT
recession/NN
year/NN
1982/CD
and/CC
the/DT
supposed/JJ
miracle/NN
that/WDT
followed/VBD
has/VBZ
seen/VBN
the/DT
profit/NN
rate/NN
rise/VB
only/RB
to/TO
8.1/CD
%/NN
in/IN
1986/CD
and/CC
8/CD
%/NN
in/IN
1987/CD
./.
Corresponding/VBG
to/TO
the/DT
fall/NN
in/IN
profit/NN
rates/NNS
was/VBD
--/:
in/IN
the/DT
early/JJ
1980s/NNS
--/:
the/DT
drop/NN
in/IN
the/DT
number/NN
arrived/VBN
at/IN
if/IN
you/PRP
divide/VBP
the/DT
market/NN
value/NN
of/IN
firms/NNS
by/IN
the/DT
replacement/NN
costs/NNS
of/IN
their/PRP$
assets/NNS
,/,
the/DT
famous/JJ
Q/NNP
ratio/NN
associated/VBN
with/IN
Prof./NNP
James/NNP
Tobin/NNP
./.
In/IN
theory/NN
,/,
the/DT
value/NN
attached/VBN
to/TO
a/DT
firm/NN
by/IN
the/DT
market/NN
and/CC
the/DT
cost/NN
of/IN
replacing/VBG
its/PRP$
assets/NNS
should/MD
be/VB
the/DT
same/JJ
./.
But/CC
of/IN
course/NN
the/DT
market/NN
could/MD
decide/VB
that/IN
the/DT
firm/NN
's/POS
capital/NN
stock/NN
--/:
its/PRP$
assets/NNS
--/:
means/VBZ
nothing/NN
if/IN
the/DT
firm/NN
is/VBZ
not/RB
producing/VBG
profits/NNS
./.
This/DT
is/VBZ
indeed/RB
what/WP
the/DT
market/NN
decided/VBD
./.
By/IN
1982/CD
the/DT
ratio/NN
was/VBD
43.5/CD
%/NN
,/,
meaning/VBG
that/IN
the/DT
market/NN
was/VBD
valuing/VBG
every/DT
dollar/NN
's/POS
worth/NN
of/IN
the/DT
average/JJ
firm/NN
's/POS
assets/NNS
at/IN
43/CD
cents/NNS
./.
From/IN
the/DT
history/NN
of/IN
capitalism/NN
we/PRP
can/MD
take/VB
it/PRP
as/IN
a/DT
sound/JJ
bet/NN
that/IN
if/IN
it/PRP
takes/VBZ
only/RB
43/CD
cents/NNS
to/TO
buy/VB
a/DT
dollar/NN
's/POS
worth/NN
of/IN
a/DT
firm/NN
's/POS
capital/NN
stock/NN
,/,
an/DT
alert/JJ
entrepreneur/NN
wo/MD
n't/RB
look/VB
the/DT
other/JJ
way/NN
./.
His/PRP$
assumption/NN
is/VBZ
that/IN
the/DT
underlying/VBG
profitability/NN
rate/NN
will/MD
go/VB
up/RB
and/CC
the/DT
capital/NN
assets/NNS
he/PRP
bought/VBD
on/IN
the/DT
cheap/NN
will/MD
soon/RB
be/VB
producing/VBG
profits/NNS
,/,
thus/RB
restoring/VBG
the/DT
market/NN
's/POS
faith/NN
in/IN
them/PRP
./.
Hence/RB
the/DT
LBO/NN
craze/NN
./.
But/CC
here/RB
is/VBZ
where/WRB
the/DT
entrepreneur/NN
made/VBD
a/DT
very/RB
risky/JJ
bet/NN
,/,
and/CC
where/WRB
society/NN
was/VBD
maybe/RB
foolish/JJ
to/TO
look/VB
the/DT
other/JJ
way/NN
./.
The/DT
profit/NN
rate/NN
is/VBZ
still/RB
low/JJ
and/CC
the/DT
Q/NNP
ratio/NN
was/VBD
only/RB
65/CD
%/NN
in/IN
1987/CD
and/CC
68.9/CD
%/NN
in/IN
1988/CD
./.
Result/NN
:/:
a/DT
landscape/NN
littered/VBN
with/IN
lemons/NNS
,/,
huge/JJ
debt/NN
burdens/NNS
crushing/VBG
down/RB
upon/IN
the/DT
arch/NN
and/CC
spans/NNS
of/IN
corporate/JJ
America/NNP
./.
The/DT
mounting/VBG
risks/NNS
did/VBD
not/RB
go/VB
unobserved/JJ
,/,
even/RB
in/IN
the/DT
mid-1980s/NNS
./.
But/CC
there/EX
were/VBD
enough/RB
promoters/NNS
announcing/VBG
the/DT
end/NN
of/IN
history/NN
this/DT
case/NN
suspension/NN
of/IN
normal/JJ
laws/NNS
of/IN
economic/JJ
gravity/NN
society/NN
to/TO
continue/VB
shielding/VBG
its/PRP$
eyes/NNS
./.
Mainstream/NN
economists/NNS
and/CC
commentators/NNS
,/,
craning/VBG
their/PRP$
necks/NNS
up/RB
at/IN
the/DT
great/JJ
pyramids/NNS
of/IN
junk/NN
financing/NN
,/,
swiveling/VBG
their/PRP$
heads/NNS
to/TO
watch/VB
the/DT
avalanche/NN
of/IN
leveraged/JJ
buy-outs/NNS
,/,
claimed/VBD
the/DT
end/NN
result/NN
would/MD
be/VB
a/DT
leaner/JJR
,/,
meaner/JJR
corporate/JJ
America/NNP
,/,
with/IN
soaring/VBG
productivity/NN
and/CC
profits/NNS
and/CC
the/DT
weaker/JJR
gone/VBN
to/TO
the/DT
wall/NN
./.
But/CC
this/DT
is/VBZ
not/RB
where/WRB
the/DT
rewards/NNS
of/IN
junk/NN
financing/NN
were/VBD
found/VBN
./.
The/DT
beneficiaries/NNS
were/VBD
those/DT
financiers/NNS
whose/WP$
icon/NN
was/VBD
the/DT
topic/NN
figure/NN
of/IN
'80s/NNS
capitalism/NN
,/,
Michael/NNP
Milken/NNP
's/POS
$/$
517/CD
million/CD
salary/NN
in/IN
one/CD
year/NN
./.
Left-stream/JJ
economists/NNS
I/PRP
associate/VBP
with/IN
--/:
fellows/NNS
in/IN
the/DT
Union/NNP
of/IN
Radical/NNP
Political/NNP
Economists/NNPS
,/,
most/RBS
particularly/RB
Robert/NNP
Pollin/NNP
of/IN
the/DT
economics/NNS
faculty/NN
at/IN
the/DT
University/NNP
of/IN
California/NNP
at/IN
Riverside/NNP
--/:
were/VBD
not/RB
hypnotized/VBN
in/IN
the/DT
manner/NN
of/IN
their/PRP$
pliant/JJ
colleagues/NNS
./.
All/DT
along/IN
they/PRP
have/VBP
been/VBN
noting/VBG
the/DT
tremors/NNS
and/CC
pointing/VBG
out/RP
the/DT
underlying/VBG
realities/NNS
./.
Profit/NN
rates/NNS
after/IN
the/DT
great/JJ
merger/NN
wave/NN
are/VBP
no/RB
higher/JJR
,/,
and/CC
now/RB
we/PRP
have/VBP
an/DT
extremely/RB
high-interest/JJ
burden/NN
relative/JJ
to/TO
cash/NN
flow/NN
./.
The/DT
consequences/NNS
of/IN
building/VBG
empires/NNS
with/IN
sand/NN
are/VBP
showing/VBG
up/RB
./.
In/IN
contrast/NN
to/TO
previous/JJ
estimates/NNS
reckoning/VBG
the/DT
default/NN
rate/NN
on/IN
junk/NN
bonds/NNS
at/IN
2/CD
%/NN
or/CC
3/CD
%/NN
,/,
a/DT
Harvard/NNP
study/NN
published/VBN
in/IN
April/NNP
of/IN
this/DT
year/NN
a/DT
lead/NN
story/NN
in/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
for/IN
Sept./NNP
18/CD
the/DT
default/NN
rate/NN
on/IN
these/DT
junk/NN
bonds/NNS
is/VBZ
34/CD
%/NN
./.
What/WP
is/VBZ
the/DT
consequence/NN
of/IN
a/DT
high-interest/JJ
burden/NN
,/,
high/JJ
default/NN
rates/NNS
and/CC
continued/JJ
low/JJ
profitability/NN
?/.
Corporations/NNS
need/VBP
liquidity/NN
,/,
in/IN
the/DT
form/NN
of/IN
borrowed/VBN
funds/NNS
./.
Without/IN
liquidity/NN
from/IN
the/DT
junk-bond/NN
market/NN
or/CC
cash/NN
flow/NN
from/IN
profits/NNS
,/,
they/PRP
look/VBP
to/TO
the/DT
government/NN
,/,
which/WDT
obediently/RB
assists/VBZ
the/DT
natural/JJ
motions/NNS
of/IN
the/DT
capitalist/JJ
economy/NN
with/IN
charity/NN
in/IN
the/DT
form/NN
of/IN
cuts/NNS
in/IN
the/DT
capital-gains/NNS
tax/NN
rate/NN
or/CC
bailouts/NNS
./.
The/DT
consequence/NN
can/MD
be/VB
inflation/NN
,/,
brought/VBN
on/IN
as/IN
the/DT
effect/NN
of/IN
a/DT
desperate/JJ
bid/NN
to/TO
avoid/VB
the/DT
deflationary/JJ
shock/NN
of/IN
a/DT
sudden/JJ
crash/NN
./.
Attacks/NNS
on/IN
inflation/NN
come/VBN
with/IN
another/DT
strategy/NN
of/IN
capital/NN
of/IN
a/DT
very/RB
traditional/JJ
sort/NN
:/:
an/DT
assault/NN
on/IN
wages/NNS
./.
Mr./NNP
Fukuyama/NNP
,/,
peering/VBG
through/IN
binoculars/NNS
at/IN
the/DT
end/NN
of/IN
history/NN
,/,
said/VBD
in/IN
his/PRP$
essay/NN
that/IN
``/``
the/DT
class/NN
issue/NN
has/VBZ
actually/RB
been/VBN
successfully/RB
resolved/VBN
in/IN
the/DT
West/NN
.../:
the/DT
egalitarianism/NN
of/IN
modern/JJ
America/NNP
represents/VBZ
the/DT
essential/JJ
achievement/NN
of/IN
the/DT
classless/JJ
society/NN
envisioned/VBN
by/IN
Marx/NNP
./.
''/''
Mr./NNP
Fukuyama/NNP
might/MD
want/VB
to/TO
consult/VB
some/DT
American/JJ
workers/NNS
on/IN
the/DT
subject/NN
of/IN
class/NN
and/CC
egalitarianism/NN
./.
From/IN
its/PRP$
peak/NN
in/IN
1972/CD
of/IN
$/$
198.41/CD
,/,
the/DT
average/JJ
American/JJ
weekly/JJ
wage/NN
had/VBD
fallen/VBN
to/TO
$/$
169.28/CD
in/IN
1987/CD
--/:
both/DT
figures/NNS
being/VBG
expressed/VBN
in/IN
1977/CD
dollars/NNS
./.
In/IN
other/JJ
words/NNS
,/,
after/IN
the/DT
glory/NN
boom/NN
of/IN
the/DT
Reagan/NNP
years/NNS
,/,
wages/NNS
had/VBD
sunk/VBN
from/IN
the/DT
post/JJ
World/NNP
War/NNP
II/NNP
peak/NN
by/IN
16/CD
%/NN
as/IN
capitalists/NNS
,/,
helped/VBN
by/IN
the/DT
government/NN
,/,
turned/VBD
down/RP
the/DT
screws/NNS
or/CC
went/VBD
offshore/RB
./.
But/CC
there/EX
are/VBP
signs/NNS
now/RB
--/:
the/DT
strikes/NNS
by/IN
miners/NNS
,/,
Boeing/NNP
workers/NNS
,/,
telephone/NN
workers/NNS
,/,
etc./FW
--/:
that/IN
this/DT
attack/NN
on/IN
wages/NNS
is/VBZ
being/VBG
more/RBR
fiercely/RB
resisted/VBN
./.
These/DT
are/VBP
long-term/JJ
Richter/NNP
readings/NNS
on/IN
American/JJ
capitalism/NN
./.
The/DT
whole/JJ
structure/NN
is/VBZ
extremely/RB
shaky/JJ
./.
Governments/NNS
have/VBP
become/VBN
sophisticated/JJ
in/IN
handling/VBG
moments/NNS
of/IN
panic/NN
a/DT
word/NN
the/DT
London/NNP
Times/NNP
forbade/VBD
my/PRP$
father/NN
to/TO
use/VB
when/WRB
he/PRP
was/VBD
reporting/VBG
the/DT
Wall/NNP
Street/NNP
crash/NN
in/IN
1929/CD
But/CC
sophistication/NN
has/VBZ
its/PRP$
limits/NNS
./.
The/DT
S&L/NNP
bailout/NN
could/MD
cost/VB
$/$
300/CD
billion/CD
,/,
computing/VBG
interest/NN
on/IN
the/DT
government/NN
's/POS
loans/NNS
./.
These/DT
are/VBP
real/JJ
costs/NNS
./.
Under/IN
what/WP
weights/NNS
will/MD
the/DT
Federal/NNP
Deposit/NNP
Insurance/NNP
Corporation/NNP
totter/VB
?/.
Capitalism/NN
may/MD
now/RB
be/VB
engineered/VBN
to/TO
withstand/VB
sudden/JJ
shocks/NNS
,/,
but/CC
there/EX
are/VBP
fault/NN
lines/NNS
--/:
the/DT
crisis/NN
in/IN
profits/NNS
,/,
the/DT
assault/NN
on/IN
wages/NNS
,/,
the/DT
structural/JJ
inequity/NN
of/IN
the/DT
system/NN
--/:
that/WDT
make/VBP
fools/NNS
of/IN
those/DT
who/WP
claim/VBP
that/IN
the/DT
future/NN
is/VBZ
here/RB
and/CC
that/DT
history/NN
is/VBZ
over/RB
./.
Mr./NNP
Cockburn/NNP
is/VBZ
a/DT
columnist/NN
for/IN
The/DT
Nation/NNP
and/CC
LA/NNP
Weekly/NNP
./.
Japan/NNP
Air/NNP
Lines/NNPS
,/,
Lufthansa/NNP
German/NNP
Airlines/NNPS
and/CC
Air/NNP
France/NNP
reportedly/RB
plan/VBP
to/TO
form/VB
an/DT
international/JJ
air-freight/NN
company/NN
this/DT
year/NN
,/,
a/DT
move/NN
that/WDT
could/MD
further/RBR
consolidate/VB
the/DT
industry/NN
./.
Japanese/JJ
newspaper/NN
Nihon/NNP
Keizai/NNP
Shimbun/NNP
reported/VBD
that/IN
the/DT
three/CD
giants/NNS
plan/VBP
to/TO
integrate/VB
their/PRP$
cargo/NN
computers/NNS
and/CC
ground-cargo/NN
and/CC
air-cargo/NN
systems/NNS
./.
They/PRP
reportedly/RB
will/MD
invest/VB
a/DT
total/NN
of/IN
20/CD
billion/CD
yen/NNS
$/$
140/CD
million/CD
the/DT
venture/NN
,/,
whose/WP$
headquarters/NN
would/MD
be/VB
in/IN
France/NNP
or/CC
West/NNP
Germany/NNP
./.
The/DT
action/NN
follows/VBZ
Federal/NNP
Express/NNP
Corp./NNP
's/POS
acquisition/NN
of/IN
Flying/NNP
Tiger/NNP
Line/NNP
Inc./NNP
in/IN
August/NNP
./.
After/IN
that/DT
,/,
``/``
it/PRP
would/MD
make/VB
sense/NN
for/IN
airlines/NNS
to/TO
talk/VB
about/IN
doing/VBG
things/NNS
jointly/RB
,/,
''/''
said/VBD
Cotton/NNP
Daly/NNP
,/,
director/NN
of/IN
cargo/NN
services/NNS
for/IN
New/NNP
York/NNP
consulting/NN
firm/NN
Simat/NNP
,/,
Helliesen/NNP
&/CC
Eichner/NNP
Inc/NNP
./.
Mr./NNP
Daly/NNP
said/VBD
such/JJ
discussions/NNS
are/VBP
motivated/VBN
by/IN
the/DT
competitive/JJ
threat/NN
posed/VBN
by/IN
Federal/NNP
Express/NNP
,/,
United/NNP
Parcel/NNP
Service/NNP
of/IN
America/NNP
Inc./NNP
and/CC
other/JJ
fast-growing/JJ
air-freight/NN
companies/NNS
./.
Many/JJ
airlines/NNS
are/VBP
talking/VBG
about/IN
cargo/NN
ventures/NNS
,/,
and/CC
there/EX
have/VBP
been/VBN
rumors/NNS
about/IN
such/JJ
a/DT
tie/NN
between/IN
JAL/NNP
and/CC
European/JJ
airlines/NNS
./.
In/IN
Tokyo/NNP
,/,
a/DT
JAL/NNP
spokesman/NN
said/VBD
he/PRP
could/MD
n't/RB
confirm/VB
or/CC
deny/VB
the/DT
latest/JJS
Japanese/JJ
report/NN
./.
But/CC
he/PRP
said/VBD
JAL/NNP
is/VBZ
talking/VBG
to/TO
Lufthansa/NNP
and/CC
Air/NNP
France/NNP
about/IN
some/DT
sort/NN
of/IN
cargo/NN
venture/NN
./.
``/``
It/PRP
is/VBZ
just/RB
one/CD
of/IN
a/DT
number/NN
of/IN
strategies/NNS
JAL/NNP
has/VBZ
embarked/VBN
upon/IN
to/TO
come/VB
to/TO
terms/NNS
with/IN
the/DT
situation/NN
in/IN
Europe/NNP
after/IN
1992/CD
,/,
''/''
the/DT
deadline/NN
for/IN
ending/VBG
trade/NN
barriers/NNS
in/IN
the/DT
EC/NNP
,/,
he/PRP
said/VBD
./.
In/IN
Frankfurt/NNP
,/,
a/DT
Lufthansa/NNP
spokesman/NN
confirmed/VBD
talks/NNS
are/VBP
under/IN
way/NN
,/,
but/CC
declined/VBD
to/TO
comment/VB
./.
A/DT
Lufthansa/NNP
spokeswoman/NN
in/IN
Tokyo/NNP
said/VBD
the/DT
head/NN
of/IN
Lufthansa/NNP
's/POS
cargo/NN
operations/NNS
had/VBD
been/VBN
in/IN
Toyko/NNP
last/JJ
week/NN
for/IN
talks/NNS
with/IN
JAL/NNP
./.
In/IN
Paris/NNP
,/,
Air/NNP
France/NNP
declined/VBD
to/TO
comment/VB
./.
``/``
Nothing/NN
is/VBZ
defined/VBN
or/CC
signed/VBN
at/IN
this/DT
point/NN
,/,
''/''
Mr./NNP
Daly/NNP
said/VBD
of/IN
the/DT
talks/NNS
./.
Whatever/WDT
accord/NN
the/DT
three/CD
carriers/NNS
reach/VBP
,/,
he/PRP
said/VBD
,/,
he/PRP
is/VBZ
skeptical/JJ
it/PRP
would/MD
create/VB
a/DT
separate/JJ
airline/NN
./.
If/IN
the/DT
three/CD
companies/NNS
pool/VBP
their/PRP$
air-freight/NN
businesses/NNS
,/,
their/PRP$
clout/NN
would/MD
be/VB
considerable/JJ
./.
According/VBG
to/TO
figures/NNS
from/IN
the/DT
International/NNP
Air/NNP
Transport/NNP
Association/NNP
,/,
they/PRP
carried/VBD
a/DT
combined/VBN
1.8/CD
million/CD
tons/NNS
of/IN
freight/NN
last/JJ
year/NN
./.
Federal/NNP
Express/NNP
and/CC
Flying/NNP
Tiger/NNP
,/,
as/IN
separate/JJ
companies/NNS
,/,
carried/VBD
a/DT
combined/VBN
2.6/CD
million/CD
tons/NNS
./.
Air/NNP
France/NNP
and/CC
Lufthansa/NNP
last/JJ
month/NN
concluded/VBD
a/DT
far-reaching/JJ
cooperation/NN
accord/NN
that/WDT
includes/VBZ
air-freight/NN
activities/NNS
./.
They/PRP
plan/VBP
to/TO
increase/VB
cooperation/NN
in/IN
freight/NN
ground-handling/NNS
and/CC
create/VB
a/DT
world-wide/JJ
computer/NN
system/NN
to/TO
process/VB
cargo/NN
./.
Other/JJ
airlines/NNS
would/MD
have/VB
access/NN
to/TO
the/DT
system/NN
,/,
they/PRP
said/VBD
,/,
and/CC
negotiations/NNS
with/IN
partners/NNS
were/VBD
already/RB
under/IN
way/NN
./.
Both/DT
European/JJ
airlines/NNS
operate/VBP
extensive/JJ
fleets/NNS
of/IN
Boeing/NNP
747/CD
freighters/NNS
and/CC
747/CD
Combis/NNPS
,/,
aircraft/NNS
that/WDT
carry/VBP
both/DT
freight/NN
and/CC
passengers/NNS
on/IN
the/DT
main/JJ
deck/NN
./.
They/PRP
currently/RB
have/VBP
large/JJ
orders/NNS
for/IN
cargo/NN
planes/NNS
./.
Several/JJ
airlines/NNS
,/,
including/VBG
Lufthansa/NNP
,/,
JAL/NNP
and/CC
Cathay/NNP
Pacific/NNP
Airways/NNPS
,/,
are/VBP
working/VBG
on/IN
a/DT
so-called/JJ
global/JJ
cargo/NN
system/NN
and/CC
are/VBP
trying/VBG
to/TO
attract/VB
other/JJ
carriers/NNS
to/TO
join/VB
,/,
Mr./NNP
Daly/NNP
said/VBD
./.
JAL/NNP
also/RB
has/VBZ
signaled/VBN
it/PRP
is/VBZ
looking/VBG
for/IN
toeholds/NNS
in/IN
Europe/NNP
before/IN
the/DT
end/NN
of/IN
1992/CD
./.
Last/JJ
month/NN
,/,
the/DT
carrier/NN
said/VBD
it/PRP
wanted/VBD
to/TO
lease/VB
crews/NNS
and/CC
planes/NNS
from/IN
British/NNP
Airways/NNPS
so/IN
it/PRP
could/MD
funnel/VB
its/PRP$
passengers/NNS
from/IN
London/NNP
to/TO
other/JJ
European/JJ
destinations/NNS
./.
British/NNP
Airways/NNPS
said/VBD
it/PRP
has/VBZ
n't/RB
received/VBD
a/DT
proposal/NN
from/IN
JAL/NNP
./.
But/CC
last/JJ
week/NN
there/EX
were/VBD
air-traffic/NN
negotiations/NNS
between/IN
the/DT
U.K./NNP
and/CC
Japan/NNP
,/,
a/DT
likely/JJ
first/JJ
step/NN
to/TO
any/DT
commercial/JJ
agreement/NN
between/IN
JAL/NNP
and/CC
British/NNP
Airways/NNPS
or/CC
another/DT
U.K./NNP
carrier/NN
./.
Federal/NNP
Paper/NNP
Board/NNP
Co./NNP
said/VBD
it/PRP
completed/VBD
the/DT
previously/RB
announced/VBN
purchase/NN
of/IN
Imperial/NNP
Cup/NNP
Corp./NNP
,/,
a/DT
closely/RB
held/JJ
maker/NN
of/IN
paper/NN
cups/NNS
based/VBN
in/IN
Kenton/NNP
,/,
Ohio/NNP
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Imperial/NNP
Cup/NNP
has/VBZ
annual/JJ
sales/NNS
of/IN
approximately/RB
$/$
75/CD
million/CD
./.
Federal/NNP
Paper/NNP
Board/NNP
sells/VBZ
paper/NN
and/CC
wood/NN
products/NNS
./.
In/IN
a/DT
move/NN
to/TO
prevent/VB
any/DT
dislocation/NN
in/IN
the/DT
financial/JJ
markets/NNS
from/IN
the/DT
California/NNP
earthquake/NN
,/,
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
said/VBD
it/PRP
temporarily/RB
reassigned/VBD
options/NNS
listed/VBN
on/IN
the/DT
Pacific/NNP
Stock/NNP
Exchange/NNP
to/TO
the/DT
American/JJ
,/,
New/NNP
York/NNP
and/CC
Philadelphia/NNP
stock/NN
exchanges/NNS
and/CC
to/TO
the/DT
Chicago/NNP
Board/NNP
Options/NNPS
Exchange/NNP
./.
The/DT
decision/NN
,/,
which/WDT
affects/VBZ
millions/NNS
of/IN
dollars/NNS
of/IN
trading/NN
positions/NNS
,/,
was/VBD
made/VBN
late/JJ
yesterday/NN
because/IN
the/DT
Pacific/NNP
exchange/NN
's/POS
options/NNS
floor/NN
was/VBD
shut/VBN
down/RB
as/IN
a/DT
result/NN
of/IN
Tuesday/NNP
's/POS
earthquake/NN
./.
The/DT
SEC/NNP
,/,
faced/VBN
with/IN
a/DT
major/JJ
squeeze/NN
on/IN
options/NNS
positions/NNS
,/,
said/VBD
it/PRP
was/VBD
necessary/JJ
to/TO
ensure/VB
that/IN
options/NNS
listed/VBN
on/IN
the/DT
exchange/NN
could/MD
be/VB
traded/VBN
today/NN
and/CC
tomorrow/NN
./.
SEC/NNP
Chairman/NNP
Richard/NNP
Breeden/NNP
said/VBD
the/DT
cooperation/NN
by/IN
the/DT
exchanges/NNS
would/MD
enable/VB
investors/NNS
to/TO
buy/VB
and/CC
sell/VB
options/NNS
listed/VBN
solely/RB
on/IN
the/DT
Pacific/NNP
exchange/NN
,/,
guaranteeing/VBG
the/DT
liquidity/NN
of/IN
the/DT
market/NN
./.
Officials/NNS
at/IN
the/DT
four/CD
exchanges/NNS
said/VBD
well/RB
over/IN
50/CD
traders/NNS
from/IN
the/DT
Pacific/NNP
exchange/NN
were/VBD
taking/VBG
flights/NNS
from/IN
San/NNP
Francisco/NNP
late/JJ
yesterday/NN
to/TO
the/DT
American/JJ
,/,
New/NNP
York/NNP
and/CC
Philadelphia/NNP
exchanges/NNS
and/CC
to/TO
the/DT
CBOE/NNP
,/,
where/WRB
they/PRP
would/MD
continue/VB
making/VBG
markets/NNS
in/IN
the/DT
Pacific-listed/JJ
options/NNS
./.
The/DT
Big/NNP
Board/NNP
said/VBD
carpenters/NNS
quickly/RB
erected/VBD
a/DT
new/JJ
options/NNS
floor/NN
to/TO
accomodate/VB
40/CD
traders/NNS
from/IN
the/DT
Pacific/NNP
exchange/NN
./.
In/IN
addition/NN
,/,
specialists/NNS
on/IN
the/DT
exchanges/NNS
agreed/VBD
to/TO
provide/VB
backup/JJ
capital/NN
for/IN
market-making/NN
in/IN
Pacific/NNP
exchange/NN
options/NNS
traded/VBN
on/IN
the/DT
exchanges/NNS
./.
Trading/NN
was/VBD
light/JJ
on/IN
the/DT
Pacific/NNP
Stock/NNP
Exchange/NNP
yesterday/NN
,/,
with/IN
workers/NNS
at/IN
the/DT
exchange/NN
's/POS
main/JJ
floor/NN
in/IN
San/NNP
Francisco/NNP
struggling/VBG
to/TO
execute/VB
orders/NNS
by/IN
flashlight/NN
as/IN
a/DT
result/NN
of/IN
a/DT
continuing/VBG
power/NN
outage/NN
./.
The/DT
most/RBS
pressing/JJ
problem/NN
was/VBD
the/DT
suspension/NN
of/IN
options/NNS
trading/NN
./.
The/DT
Pacific/NNP
exchange/NN
has/VBZ
options/NNS
for/IN
129/CD
underlying/VBG
stock/NN
issues/NNS
,/,
including/VBG
highly/RB
active/JJ
Hilton/NNP
Hotels/NNPS
Corp./NNP
,/,
which/WDT
is/VBZ
listed/VBN
on/IN
the/DT
Big/NNP
Board/NNP
./.
Investors/NNS
were/VBD
concerned/VBN
that/IN
they/PRP
might/MD
be/VB
unable/JJ
to/TO
exercise/VB
options/NNS
that/WDT
expire/VBP
tomorrow/NN
./.
But/CC
professionals/NNS
said/VBD
throughout/IN
the/DT
day/NN
that/IN
the/DT
shutdown/NN
would/MD
n't/RB
be/VB
a/DT
cause/NN
for/IN
alarm/NN
even/RB
if/IN
it/PRP
were/VBD
to/TO
persist/VB
for/IN
several/JJ
days/NNS
./.
``/``
I/PRP
've/VBP
told/VBN
my/PRP$
staff/NN
and/CC
clients/NNS
that/IN
they/PRP
still/RB
have/VBP
the/DT
ability/NN
to/TO
exercise/VB
their/PRP$
options/NNS
,/,
because/IN
they/PRP
are/VBP
guaranteed/VBN
by/IN
the/DT
Options/NNPS
Clearing/NNP
Corp./NNP
,/,
''/''
said/VBD
Michael/NNP
Schwartz/NNP
,/,
a/DT
senior/JJ
registered/JJ
options/NNS
strategist/NN
at/IN
Oppenheimer/NNP
&/CC
Co/NNP
./.
The/DT
SEC/NNP
reassigned/VBD
trading/NN
in/IN
the/DT
options/NNS
,/,
however/RB
,/,
to/TO
allow/VB
investors/NNS
to/TO
do/VB
more/JJR
than/IN
simply/RB
exercise/VB
the/DT
options/NNS
./.
While/IN
the/DT
exchange/NN
's/POS
equities/NNS
floor/NN
in/IN
San/NNP
Francisco/NNP
remained/VBD
open/JJ
on/IN
a/DT
limited/JJ
basis/NN
,/,
orders/NNS
were/VBD
being/VBG
routed/VBN
and/CC
executed/VBN
in/IN
Los/NNP
Angeles/NNP
./.
Workers/NNS
could/MD
dial/VB
out/RB
,/,
but/CC
they/PRP
could/MD
n't/RB
receive/VB
telephone/NN
calls/NNS
./.
``/``
It/PRP
's/VBZ
a/DT
very/RB
uncertain/JJ
situation/NN
right/RB
now/RB
,/,
''/''
said/VBD
Navin/NNP
Vyas/NNP
,/,
administrative/JJ
assistant/NN
of/IN
trading/NN
floor/NN
operations/NNS
of/IN
the/DT
exchange/NN
,/,
which/WDT
has/VBZ
daily/JJ
volume/NN
of/IN
about/IN
10/CD
million/CD
shares/NNS
./.
Because/IN
the/DT
exchange/NN
's/POS
computer/NN
was/VBD
rerouting/VBG
orders/NNS
to/TO
the/DT
exchange/NN
's/POS
trading/NN
operations/NNS
in/IN
Los/NNP
Angeles/NNP
,/,
``/``
business/NN
is/VBZ
as/RB
usual/JJ
''/''
Mr./NNP
Vyas/NNP
said/VBD
./.
``/``
If/IN
one/CD
city/NN
is/VBZ
down/RP
,/,
the/DT
other/JJ
can/MD
take/VB
over/RB
./.
''/''
Meanwhile/RB
,/,
the/DT
brokerage/NN
firms/NNS
in/IN
San/NNP
Francisco/NNP
were/VBD
trying/VBG
to/TO
cope/VB
./.
Charles/NNP
Daggs/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
of/IN
Sutro/NNP
&/CC
Co./NNP
,/,
said/VBD
traders/NNS
came/VBD
to/TO
work/VB
at/IN
5/CD
a.m./RB
PDT/NNP
--/:
many/JJ
on/IN
foot/NN
because/IN
of/IN
uncertain/JJ
road/NN
and/CC
traffic/NN
conditions/NNS
--/:
but/CC
learned/VBD
that/IN
they/PRP
would/MD
have/VB
to/TO
await/VB
a/DT
required/JJ
inspection/NN
by/IN
the/DT
city/NN
in/IN
order/NN
to/TO
turn/VB
the/DT
power/NN
back/RB
on/RB
at/IN
the/DT
company/NN
's/POS
two/CD
main/JJ
facilities/NNS
there/RB
./.
That/DT
should/MD
happen/VB
by/IN
today/NN
,/,
he/PRP
said/VBD
./.
Traders/NNS
worked/VBD
with/IN
the/DT
help/NN
of/IN
sunlight/NN
streaming/VBG
through/IN
windows/NNS
,/,
despite/IN
large/JJ
cracks/NNS
in/IN
the/DT
walls/NNS
and/CC
a/DT
lack/NN
of/IN
incoming/JJ
phone/NN
calls/NNS
./.
Also/RB
,/,
most/RBS
of/IN
the/DT
telecommunications/NN
equipment/NN
was/VBD
out/RP
./.
The/DT
traders/NNS
were/VBD
executing/VBG
municipal/JJ
bond/NN
,/,
mutual/JJ
fund/NN
and/CC
other/JJ
orders/NNS
through/IN
a/DT
sister/NN
firm/NN
,/,
Tucker/NNP
Anthony/NNP
Inc./NNP
,/,
which/WDT
is/VBZ
also/RB
owned/VBN
by/IN
John/NNP
Hancock/NNP
Freedom/NNP
Securities/NNPS
but/CC
is/VBZ
based/VBN
in/IN
New/NNP
York/NNP
./.
``/``
We/PRP
are/VBP
having/VBG
a/DT
regular/JJ
day/NN
./.
Volume/NN
is/VBZ
down/RP
out/IN
of/IN
San/NNP
Francisco/NNP
,/,
but/CC
not/RB
out/IN
of/IN
the/DT
11/CD
outlying/JJ
offices/NNS
,/,
''/''
Mr./NNP
Daggs/NNP
added/VBD
./.
Sutro/NNP
's/POS
Oakland/NNP
office/NN
executed/VBD
orders/NNS
through/IN
the/DT
Sacramento/NNP
office/NN
,/,
which/WDT
was/VBD
n't/RB
affected/VBN
by/IN
the/DT
quake/NN
./.
Others/NNS
,/,
like/IN
Prudential-Bache/NNP
Securities/NNPS
Inc./NNP
,/,
which/WDT
has/VBZ
eight/CD
offices/NNS
in/IN
the/DT
San/NNP
Francisco/NNP
area/NN
,/,
set/VBN
up/IN
an/DT
800/CD
number/NN
yesterday/NN
morning/NN
for/IN
customers/NNS
to/TO
obtain/VB
market/NN
commentary/NN
and/CC
other/JJ
help/NN
./.
At/IN
Kidder/NNP
,/,
Peabody/NNP
&/CC
Co./NNP
's/POS
Sacramento/NNP
branch/NN
,/,
Manager/NN
Janet/NNP
White/NNP
received/VBD
calls/NNS
yesterday/NN
morning/NN
from/IN
workers/NNS
in/IN
San/NNP
Francisco/NNP
who/WP
offered/VBD
to/TO
work/VB
in/IN
Sacramento/NNP
./.
Then/RB
she/PRP
discovered/VBD
that/IN
Quotron/NNP
Systems/NNPS
Inc./NNP
's/POS
Sacramento/NNP
lines/NNS
were/VBD
down/RP
,/,
because/IN
they/PRP
are/VBP
normally/RB
tied/VBN
in/RB
through/IN
a/DT
system/NN
that/WDT
goes/VBZ
through/IN
San/NNP
Francisco/NNP
./.
So/CC
the/DT
Kidder/NNP
brokers/NNS
had/VBD
to/TO
call/VB
other/JJ
company/NN
offices/NNS
to/TO
get/VB
quotes/NNS
on/IN
stocks/NNS
./.
At/IN
Quotron/NNP
,/,
the/DT
company/NN
's/POS
National/JJ
Call-In/NN
Center/NN
,/,
which/WDT
swung/VBD
into/IN
action/NN
for/IN
the/DT
first/JJ
time/NN
last/JJ
month/NN
for/IN
Hurricane/NNP
Hugo/NNP
,/,
assembled/VBD
a/DT
tactical/JJ
team/NN
at/IN
5/CD
a.m./RB
yesterday/NN
to/TO
begin/VB
rerouting/VBG
lines/NNS
and/CC
restore/VB
service/NN
to/TO
brokers/NNS
and/CC
traders/NNS
./.
The/DT
company/NN
dispatched/VBD
as/RB
many/JJ
as/IN
200/CD
people/NNS
in/IN
the/DT
San/NNP
Francisco/NNP
area/NN
to/TO
do/VB
the/DT
work/NN
,/,
though/IN
most/JJS
of/IN
the/DT
rerouting/VBG
was/VBD
done/VBN
by/IN
computer/NN
./.
Service/NN
appeared/VBD
to/TO
be/VB
down/RP
throughout/IN
the/DT
financial/JJ
district/NN
in/IN
downtown/NN
San/NNP
Francisco/NNP
,/,
while/IN
just/RB
parts/NNS
of/IN
Oakland/NNP
and/CC
San/NNP
Jose/NNP
were/VBD
knocked/VBN
out/RB
./.
But/CC
Dale/NNP
Irvine/NNP
,/,
director/NN
of/IN
the/DT
emergency/NN
center/NN
,/,
said/VBD
service/NN
was/VBD
being/VBG
restored/VBN
to/TO
outlying/JJ
San/NNP
Francisco/NNP
areas/NNS
./.
In/IN
Chicago/NNP
yesterday/NN
,/,
Options/NNPS
Clearing/NNP
confirmed/VBD
that/IN
it/PRP
guarantees/VBZ
the/DT
Pacific/NNP
exchange/NN
options/NNS
./.
The/DT
firm/NN
also/RB
will/MD
permit/VB
its/PRP$
members/NNS
and/CC
the/DT
public/NN
``/``
to/TO
exercise/VB
their/PRP$
put/JJ
and/CC
call/JJ
options/NNS
contracts/NNS
traded/VBN
on/IN
the/DT
Pacific/NNP
exchange/NN
''/''
even/RB
if/IN
the/DT
exchange/NN
is/VBZ
closed/JJ
,/,
said/VBD
Wayne/NNP
Luthringshausen/NNP
,/,
chairman/NN
of/IN
Options/NNPS
Clearing/NNP
./.
options/NNS
give/VBP
holders/NNS
the/DT
right/NN
,/,
but/CC
not/RB
the/DT
obligation/NN
,/,
to/TO
sell/VB
a/DT
financial/JJ
instrument/NN
at/IN
a/DT
specified/JJ
price/NN
,/,
while/IN
call/JJ
options/NNS
give/VBP
holders/NNS
the/DT
right/NN
,/,
but/CC
not/RB
the/DT
obligation/NN
,/,
to/TO
buy/VB
a/DT
financial/JJ
instrument/NN
at/IN
a/DT
specified/JJ
price/NN
Investors/NNS
and/CC
traders/NNS
in/IN
Pacific/NNP
exchange/NN
options/NNS
``/``
are/VBP
protected/VBN
to/TO
the/DT
extent/NN
that/IN
they/PRP
can/MD
convert/VB
their/PRP$
put/JJ
and/CC
call/JJ
options/NNS
into/IN
the/DT
underlying/VBG
instrument/NN
,/,
''/''
Mr./NNP
Luthringshausen/NNP
said/VBD
./.
``/``
We/PRP
are/VBP
seeing/VBG
such/JJ
exercises/NNS
today/NN
,/,
in/IN
fact/NN
./.
''/''
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
said/VBD
its/PRP$
board/NN
approved/VBD
the/DT
purchase/NN
of/IN
$/$
1/CD
billion/CD
of/IN
its/PRP$
common/JJ
shares/NNS
,/,
a/DT
move/NN
that/WDT
should/MD
help/VB
support/VB
its/PRP$
battered/JJ
stock/NN
./.
Even/RB
as/IN
the/DT
stock/NN
market/NN
has/VBZ
generally/RB
done/VBN
well/RB
this/DT
year/NN
,/,
IBM/NNP
's/POS
shares/NNS
have/VBP
slipped/VBN
steadily/RB
from/IN
its/PRP$
52-week/JJ
high/NN
of/IN
$/$
130.875/CD
./.
Yesterday/NN
's/POS
closing/NN
price/NN
of/IN
$/$
101.75/CD
,/,
down/RB
50/CD
cents/NNS
,/,
in/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
puts/VBZ
the/DT
stock/NN
at/IN
about/IN
1/CD
1\/2/CD
times/NNS
book/NN
value/NN
,/,
which/WDT
is/VBZ
as/RB
low/JJ
as/IN
it/PRP
has/VBZ
sunk/VBN
over/IN
the/DT
past/JJ
decade/NN
./.
The/DT
announcement/NN
came/VBD
after/IN
the/DT
market/NN
's/POS
close/NN
./.
The/DT
move/NN
by/IN
IBM/NNP
was/VBD
n't/RB
exactly/RB
a/DT
surprise/NN
./.
The/DT
company/NN
has/VBZ
spent/VBN
some/DT
$/$
5/CD
billion/CD
over/IN
the/DT
past/JJ
3/CD
1\/2/CD
years/NNS
to/TO
buy/VB
back/RB
42/CD
million/CD
common/JJ
shares/NNS
,/,
or/CC
roughly/RB
7/CD
%/NN
of/IN
those/DT
outstanding/JJ
./.
In/IN
addition/NN
,/,
despite/IN
IBM/NNP
's/POS
well-publicized/JJ
recent/JJ
problems/NNS
,/,
the/DT
computer/NN
giant/NN
still/RB
generates/VBZ
enormous/JJ
amounts/NNS
of/IN
cash/NN
./.
As/RB
of/IN
the/DT
end/NN
of/IN
the/DT
second/JJ
quarter/NN
,/,
it/PRP
had/VBD
$/$
4.47/CD
billion/CD
of/IN
cash/NN
and/CC
marketable/JJ
securities/NNS
on/IN
hand/NN
./.
As/IN
a/DT
result/NN
,/,
some/DT
securities/NNS
analysts/NNS
had/VBD
predicted/VBN
in/IN
recent/JJ
days/NNS
that/IN
IBM/NNP
would/MD
authorize/VB
additional/JJ
purchases/NNS
./.
In/IN
Armonk/NNP
,/,
N.Y./NNP
,/,
a/DT
spokesman/NN
said/VBD
that/IN
although/IN
IBM/NNP
did/VBD
n't/RB
view/VB
its/PRP$
spending/NN
as/IN
necessarily/RB
a/DT
way/NN
to/TO
support/VB
the/DT
stock/NN
,/,
it/PRP
thought/VBD
the/DT
purchases/NNS
were/VBD
a/DT
good/JJ
way/NN
to/TO
improve/VB
such/JJ
financial/JJ
measurements/NNS
as/IN
per-share/JJ
earnings/NNS
and/CC
return/NN
on/IN
equity/NN
./.
``/``
We/PRP
view/VBP
it/PRP
as/IN
a/DT
good/JJ
long-term/JJ
investment/NN
,/,
''/''
the/DT
spokesman/NN
said/VBD
./.
In/IN
the/DT
short/JJ
term/NN
,/,
the/DT
move/NN
is/VBZ
likely/JJ
to/TO
have/VB
little/JJ
effect/NN
./.
At/IN
yesterday/NN
's/POS
closing/NN
price/NN
,/,
$/$
1/CD
billion/CD
would/MD
buy/VB
back/RB
about/IN
10/CD
million/CD
shares/NNS
,/,
or/CC
less/JJR
than/IN
2/CD
%/NN
of/IN
the/DT
roughly/RB
580/CD
million/CD
outstanding/JJ
./.
In/IN
addition/NN
,/,
as/IN
of/IN
Sept./NNP
30/CD
,/,
the/DT
company/NN
still/RB
had/VBD
authorization/NN
to/TO
buy/VB
$/$
368/CD
million/CD
of/IN
stock/NN
under/IN
a/DT
prior/RB
repurchase/NN
program/NN
./.
Over/IN
the/DT
long/JJ
term/NN
,/,
however/RB
,/,
IBM/NNP
's/POS
stock/NN
repurchases/NNS
--/:
along/IN
with/IN
its/PRP$
hefty/JJ
,/,
$/$
4.84-a-share/JJ
annual/JJ
dividend/NN
and/CC
generally/RB
loyal/JJ
following/NN
among/IN
large/JJ
institutional/JJ
investors/NNS
--/:
are/VBP
providing/VBG
a/DT
floor/NN
for/IN
the/DT
stock/NN
price/NN
./.
Although/IN
IBM/NNP
last/JJ
year/NN
produced/VBD
its/PRP$
first/JJ
strong/JJ
results/NNS
in/IN
four/CD
years/NNS
and/CC
was/VBD
expected/VBN
to/TO
continue/VB
to/TO
roll/VB
this/DT
year/NN
,/,
it/PRP
began/VBD
faltering/VBG
as/RB
early/RB
as/IN
January/NNP
./.
First/RB
,/,
it/PRP
had/VBD
trouble/NN
manufacturing/VBG
a/DT
chip/NN
for/IN
its/PRP$
mainframes/NNS
,/,
IBM/NNP
's/POS
bread-and-butter/JJ
business/NN
./.
Then/RB
it/PRP
had/VBD
a/DT
series/NN
of/IN
smaller/JJR
glitches/NNS
,/,
including/VBG
problems/NNS
manufacturing/VBG
certain/JJ
personal/JJ
computers/NNS
and/CC
the/DT
delay/NN
in/IN
the/DT
announcement/NN
of/IN
some/DT
important/JJ
workstations/NNS
./.
Finally/RB
,/,
IBM/NNP
had/VBD
to/TO
delay/VB
the/DT
introduction/NN
of/IN
some/DT
high-end/JJ
disk/NN
drives/NNS
,/,
which/WDT
account/VBP
for/IN
10/CD
%/NN
of/IN
its/PRP$
$/$
60/CD
billion/CD
of/IN
annual/JJ
revenue/NN
./.
None/NN
of/IN
the/DT
problems/NNS
is/VBZ
necessarily/RB
fatal/JJ
,/,
and/CC
they/PRP
are/VBP
n't/RB
all/DT
necessarily/RB
even/RB
related/JJ
./.
There/EX
are/VBP
also/RB
other/JJ
factors/NNS
at/IN
work/NN
that/WDT
are/VBP
outside/IN
IBM/NNP
's/POS
control/NN
,/,
such/JJ
as/IN
currency/NN
exchange/NN
rates/NNS
./.
The/DT
strong/JJ
dollar/NN
,/,
which/WDT
reduces/VBZ
the/DT
value/NN
of/IN
overseas/JJ
earnings/NNS
and/CC
revenue/NN
when/WRB
they/PRP
are/VBP
translated/VBN
into/IN
dollars/NNS
,/,
is/VBZ
expected/VBN
to/TO
knock/VB
80/CD
to/TO
85/CD
cents/NNS
off/IN
IBM/NNP
's/POS
per-share/JJ
earnings/NNS
for/IN
the/DT
full/JJ
year/NN
./.
Without/IN
that/DT
problem/NN
,/,
IBM/NNP
might/MD
have/VB
matched/VBN
last/JJ
year/NN
's/POS
earnings/NNS
of/IN
$/$
5.81/CD
billion/CD
,/,
or/CC
$/$
9.80/CD
a/DT
share/NN
./.
Still/RB
,/,
investors/NNS
will/MD
take/VB
some/DT
convincing/NN
before/IN
they/PRP
get/VBP
back/RB
into/IN
IBM/NNP
's/POS
stock/NN
in/IN
a/DT
big/JJ
way/NN
./.
Steve/NNP
Milunovich/NNP
,/,
a/DT
securities/NNS
analyst/NN
at/IN
First/NNP
Boston/NNP
,/,
said/VBD
that/IN
while/IN
investors/NNS
were/VBD
looking/VBG
for/IN
an/DT
excuse/NN
to/TO
buy/VB
IBM/NNP
shares/VBZ
a/DT
year/NN
ago/RB
,/,
even/RB
the/DT
big/JJ
institutional/JJ
investors/NNS
are/VBP
looking/VBG
for/IN
a/DT
reason/NN
to/TO
avoid/VB
the/DT
stock/NN
these/DT
days/NNS
./.
On/IN
Wall/NNP
Street/NNP
yesterday/NN
,/,
northern/JJ
California/NNP
's/POS
killer/NN
earthquake/NN
was/VBD
just/RB
another/DT
chance/NN
to/TO
make/VB
a/DT
buck/NN
./.
At/IN
the/DT
opening/VBG
bell/NN
,/,
investors/NNS
quickly/RB
began/VBD
singling/VBG
out/RP
shares/NNS
of/IN
companies/NNS
expected/VBN
to/TO
profit/VB
or/CC
suffer/VB
in/IN
some/DT
way/NN
from/IN
the/DT
California/NNP
disaster/NN
,/,
including/VBG
insurers/NNS
,/,
construction-related/JJ
companies/NNS
,/,
refiners/NNS
and/CC
housing/NN
lenders/NNS
./.
Brokerage/NN
houses/NNS
jumped/VBD
in/RB
,/,
touting/VBG
``/``
post-quake/JJ
demand/NN
''/''
stocks/NNS
,/,
and/CC
Kidder/NNP
,/,
Peabody/NNP
&/CC
Co./NNP
set/VBD
up/RP
a/DT
toll-free/JJ
hot/JJ
line/NN
for/IN
San/NNP
Franciscans/NNP
who/WP
might/MD
need/VB
emergency/NN
investment/NN
advice/NN
and/CC
help/NN
in/IN
transferring/VBG
funds/NNS
./.
``/``
Wall/NNP
Street/NNP
thinks/VBZ
of/IN
everything/NN
in/IN
terms/NNS
of/IN
money/NN
,/,
''/''
says/VBZ
Tom/NNP
Gallagher/NNP
,/,
a/DT
senior/JJ
Oppenheimer/NNP
&/CC
Co./NNP
trader/NN
./.
However/RB
,/,
he/PRP
added/VBD
,/,
such/JJ
event-driven/JJ
trading/NN
moves/NNS
typically/RB
last/VB
only/RB
a/DT
few/JJ
hours/NNS
and/CC
are/VBP
often/RB
made/VBN
without/IN
full/JJ
information/NN
./.
The/DT
most/RBS
popular/JJ
plays/NNS
of/IN
the/DT
day/NN
were/VBD
insurance/NN
companies/NNS
such/JJ
as/IN
General/NNP
Re/NNP
Corp./NNP
,/,
which/WDT
rose/VBD
$/$
2.75/CD
to/TO
$/$
86.50/CD
,/,
Nac/NNP
Re/NNP
Corp./NNP
,/,
up/RB
$/$
2/CD
to/TO
$/$
37.75/CD
,/,
American/NNP
International/NNP
Group/NNP
Inc./NNP
,/,
up/RB
$/$
3.25/CD
to/TO
$/$
102.625/CD
,/,
and/CC
Cigna/NNP
Corp./NNP
,/,
up/RB
87.5/CD
cents/NNS
to/TO
$/$
62.50/CD
./.
Yesterday/NN
,/,
the/DT
brokerage/NN
firm/NN
Conning/NNP
&/CC
Co./NNP
said/VBD
insurers/NNS
will/MD
use/VB
the/DT
earthquake/NN
as/IN
an/DT
excuse/NN
to/TO
raise/VB
insurance/NN
rates/NNS
,/,
ending/VBG
their/PRP$
long/JJ
price/NN
wars/NNS
./.
Before/IN
this/DT
bullish/JJ
theory/NN
surfaced/VBD
,/,
some/DT
insurance/NN
stocks/NNS
initially/RB
fell/VBD
,/,
indicating/VBG
that/IN
investors/NNS
thought/VBD
the/DT
quake/NN
might/MD
cost/VB
insurers/NNS
a/DT
lot/NN
of/IN
money/NN
./.
In/IN
fact/NN
,/,
Fireman/NNP
's/POS
Fund/NNP
Corp./NNP
,/,
which/WDT
ended/VBD
the/DT
day/NN
off/RB
50/CD
cents/NNS
to/TO
$/$
36.50/CD
,/,
said/VBD
earthquake/NN
damage/NN
would/MD
slightly/RB
hurt/VB
fourth-quarter/JJ
profit/NN
./.
On/IN
the/DT
prospect/NN
for/IN
rebuilding/VBG
northern/JJ
California/NNP
,/,
investors/NNS
bid/VB
up/RP
cement-makers/NNS
Calmat/NNP
Co./NNP
,/,
up/RB
$/$
2.75/CD
to/TO
$/$
28.75/CD
,/,
and/CC
Lone/NNP
Star/NNP
Industries/NNPS
Inc./NNP
,/,
up/RB
$/$
1.75/CD
to/TO
$/$
29.25/CD
./.
Bridge/NN
and/CC
road/NN
builders/NNS
had/VBD
a/DT
field/NN
day/NN
,/,
including/VBG
Kasler/NNP
Corp./NNP
,/,
up/RB
$/$
2.125/CD
to/TO
$/$
9.875/CD
,/,
Guy/NNP
F./NNP
Atkinson/NNP
Co./NNP
,/,
up/RB
87.5/CD
to/TO
$/$
61.875/CD
,/,
and/CC
Morrison/NNP
Knudsen/NNP
Corp./NNP
,/,
which/WDT
reported/VBD
higher/JJR
third-quarter/JJ
earnings/NNS
yesterday/NN
,/,
up/RB
$/$
2.25/CD
to/TO
$/$
44.125/CD
./.
Fluor/NNP
Corp./NNP
,/,
a/DT
construction/NN
engineering/NN
firm/NN
,/,
gained/VBD
75/CD
cents/NNS
to/TO
$/$
33.375/CD
./.
But/CC
home-building/NN
stocks/NNS
were/VBD
a/DT
mixed/JJ
bag/NN
./.
Timber/NN
stocks/NNS
got/VBD
a/DT
big/JJ
boost/NN
./.
Georgia/NNP
Pacific/NNP
Corp./NNP
,/,
up/RB
$/$
1.25/CD
to/TO
$/$
58/CD
,/,
and/CC
Maxxam/NNP
Inc./NNP
,/,
up/RB
$/$
3/CD
to/TO
$/$
43.75/CD
,/,
both/DT
reported/VBD
strong/JJ
profits/NNS
./.
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
touted/VBD
Georgia-Pacific/NNP
,/,
Louisiana/NNP
Pacific/NNP
Corp./NNP
and/CC
Willamette/NNP
Industries/NNPS
Inc./NNP
as/IN
the/DT
best/RBS
post-quake/JJ
plywood/NN
plays/NNS
./.
Other/JJ
gainers/NNS
were/VBD
companies/NNS
with/IN
one/CD
or/CC
more/JJR
undamaged/JJ
California/NNP
refineries/NNS
./.
Tosco/NNP
Corp./NNP
jumped/VBD
$/$
1.125/CD
to/TO
$/$
20.125/CD
and/CC
Chevron/NNP
Corp./NNP
,/,
despite/IN
a/DT
temporary/JJ
pipeline/NN
shutdown/NN
,/,
rose/VBD
$/$
1/CD
to/TO
$/$
65/CD
./.
Meanwhile/RB
,/,
shares/NNS
of/IN
some/DT
big/JJ
housing/NN
lenders/NNS
got/VBD
hit/VBN
,/,
on/IN
the/DT
likelihood/NN
that/IN
the/DT
lenders/NNS
'/POS
collateral/NN
--/:
people/NNS
's/POS
homes/NNS
--/:
suffered/VBN
physical/JJ
damage/NN
and/CC
perhaps/RB
a/DT
loss/NN
in/IN
value/NN
./.
Wells/NNP
Fargo/NNP
&/CC
Co./NNP
fell/VBD
50/CD
cents/NNS
to/TO
$/$
81.50/CD
,/,
and/CC
BankAmerica/NNP
Corp./NNP
fell/VBD
50/CD
cents/NNS
to/TO
$/$
31.875/CD
./.
Some/DT
California/NNP
thrift/NN
stocks/NNS
also/RB
fell/VBD
,/,
including/VBG
Golden/NNP
West/NNP
Financial/NNP
Corp./NNP
and/CC
H.F./NNP
Ahmanson/NNP
&/CC
Co./NNP
,/,
which/WDT
reported/VBD
lower/JJR
earnings/NNS
yesterday/NN
./.
``/``
Property/NN
values/NNS
did/VBD
n't/RB
go/VB
up/RB
in/IN
California/NNP
yesterday/NN
,/,
''/''
says/VBZ
one/CD
money/NN
manager/NN
./.
Pacific/NNP
Gas/NNP
&/CC
Electric/NNP
Co./NNP
fell/VBD
37.5/CD
cents/NNS
to/TO
$/$
19.625/CD
./.
One/CD
of/IN
its/PRP$
power/NN
generators/NNS
was/VBD
damaged/VBN
,/,
though/IN
the/DT
company/NN
said/VBD
there/EX
wo/MD
n't/RB
be/VB
any/DT
financial/JJ
impact/NN
./.
Pacific/NNP
Telesis/NNP
Group/NNP
lost/VBD
62.5/CD
cents/NNS
to/TO
$/$
44.625/CD
./.
A/DT
computer/NN
failure/NN
delayed/VBD
its/PRP$
earnings/NNS
announcement/NN
,/,
and/CC
some/DT
investors/NNS
think/VBP
it/PRP
might/MD
have/VB
extra/JJ
costs/NNS
to/TO
repair/VB
damaged/JJ
telephone/NN
lines/NNS
./.
Heavy/JJ
construction/NN
,/,
property-casualty/NN
insurance/NN
and/CC
forest/NN
products/NNS
were/VBD
among/IN
the/DT
best/JJS
performing/VBG
industry/NN
groups/NNS
in/IN
the/DT
Dow/NNP
Jones/NNP
Equity/NNP
Market/NNP
Index/NNP
yesterday/NN
./.
Friday/NNP
's/POS
stock/NN
market/NN
plunge/NN
claimed/VBD
its/PRP$
second/JJ
victim/NN
among/IN
the/DT
scores/NNS
of/IN
futures/NNS
and/CC
options/NNS
trading/NN
firms/NNS
here/RB
./.
Petco/NNP
Options/NNPS
,/,
an/DT
options/NNS
trading/NN
firm/NN
owned/VBN
by/IN
the/DT
family/NN
of/IN
the/DT
deceased/JJ
former/JJ
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
chairman/NN
Ralph/NNP
Peters/NNP
,/,
is/VBZ
getting/VBG
out/IN
of/IN
the/DT
trade/NN
clearing/NN
,/,
or/CC
processing/NN
and/CC
guaranteeing/NN
,/,
business/NN
after/IN
sustaining/VBG
a/DT
multimillion/JJ
dollar/NN
loss/NN
Friday/NNP
,/,
options/NNS
industry/NN
officials/NNS
said/VBD
./.
Nearly/RB
75/CD
options/NNS
traders/NNS
on/IN
the/DT
Chicago/NNP
Board/NNP
Options/NNPS
Exchange/NNP
who/WP
cleared/VBD
trades/NNS
through/IN
Petco/NNP
,/,
including/VBG
a/DT
handful/NN
of/IN
traders/NNS
who/WP
lost/VBD
between/IN
$/$
500,000/CD
to/TO
$/$
1/CD
million/CD
themselves/PRP
as/IN
a/DT
result/NN
of/IN
Friday/NNP
's/POS
debacle/NN
,/,
are/VBP
trying/VBG
to/TO
transfer/VB
their/PRP$
business/NN
to/TO
other/JJ
clearing/NN
firms/NNS
,/,
CBOE/NNP
members/NNS
said/VBD
./.
Timothy/NNP
Vincent/NNP
,/,
Petco/NNP
chief/JJ
executive/NN
officer/NN
,/,
confirmed/VBD
that/IN
Petco/NNP
was/VBD
withdrawing/VBG
from/IN
the/DT
clearing/NN
business/NN
./.
``/``
The/DT
owners/NNS
of/IN
the/DT
company/NN
got/VBD
a/DT
look/NN
at/IN
the/DT
potential/JJ
risks/NNS
in/IN
this/DT
business/NN
,/,
and/CC
after/IN
Monday/NNP
they/PRP
felt/VBD
they/PRP
did/VBD
n't/RB
want/VB
to/TO
be/VB
exposed/VBN
any/DT
more/JJR
,/,
''/''
he/PRP
said/VBD
./.
He/PRP
added/VBD
that/IN
Petco/NNP
remained/VBD
in/IN
compliance/NN
with/IN
all/DT
industry/NN
capital/NN
requirements/NNS
during/IN
the/DT
market/NN
's/POS
rapid/JJ
plunge/NN
Friday/NNP
and/CC
Monday/NNP
's/POS
rebound/NN
./.
A/DT
CBOE/NNP
spokeswoman/NN
declined/VBD
comment/NN
on/IN
Petco/NNP
./.
Over/IN
the/DT
weekend/NN
Fossett/NNP
Corp./NNP
,/,
another/DT
options/NNS
trading/NN
firm/NN
,/,
transferred/VBD
the/DT
clearing/NN
accounts/NNS
of/IN
about/IN
160/CD
traders/NNS
to/TO
First/NNP
Options/NNPS
of/IN
Chicago/NNP
,/,
a/DT
unit/NN
of/IN
Continental/NNP
Bank/NNP
Corp./NNP
,/,
because/IN
it/PRP
could/MD
n't/RB
meet/VB
regulatory/JJ
capital/NN
requirements/NNS
after/IN
Friday/NNP
's/POS
market/NN
slide/NN
./.
The/DT
unprecedented/JJ
transfer/NN
of/IN
accounts/NNS
underscored/VBD
the/DT
options/NNS
industry/NN
's/POS
desire/NN
not/RB
to/TO
have/VB
its/PRP$
credibility/NN
tarnished/VBN
by/IN
potentially/RB
widespread/JJ
trading/NN
defaults/NNS
on/IN
Monday/NNP
./.
The/DT
CBOE/NNP
,/,
American/NNP
Stock/NNP
Exchange/NNP
,/,
Options/NNPS
Clearing/NNP
Corp./NNP
and/CC
Stephen/NNP
Fossett/NNP
,/,
owner/NN
of/IN
Fossett/NNP
,/,
joined/VBN
in/IN
putting/VBG
up/RP
$/$
50/CD
million/CD
to/TO
guarantee/VB
the/DT
accounts/NNS
at/IN
First/NNP
Options/NNPS
./.
The/DT
head/NN
of/IN
another/DT
small/JJ
options/NNS
clearing/NN
firm/NN
,/,
who/WP
asked/VBD
not/RB
to/TO
be/VB
identified/VBN
,/,
said/VBD
that/IN
the/DT
heightened/JJ
volatility/NN
in/IN
the/DT
financial/JJ
markets/NNS
in/IN
recent/JJ
years/NNS
makes/VBZ
it/PRP
increasingly/RB
difficult/JJ
for/IN
any/DT
but/IN
the/DT
largest/JJS
financial/JJ
trading/NN
firms/NNS
to/TO
shoulder/VB
the/DT
risk/NN
inherent/JJ
in/IN
the/DT
highly/RB
leveraged/JJ
options/NNS
and/CC
futures/NNS
business/NN
./.
Prior/RB
to/TO
the/DT
introduction/NN
of/IN
financial/JJ
futures/NNS
in/IN
the/DT
late/JJ
1970s/NNS
,/,
most/JJS
trading/NN
firms/NNS
clustered/VBN
around/IN
the/DT
LaSalle/NNP
Street/NNP
financial/JJ
district/NN
here/RB
were/VBD
family/NN
operations/NNS
handed/VBD
down/RB
from/IN
one/CD
generation/NN
to/TO
the/DT
next/JJ
./.
Most/JJS
also/RB
were/VBD
relatively/RB
undercapitalized/JJ
compared/VBN
with/IN
the/DT
size/NN
of/IN
most/JJS
Wall/NNP
Street/NNP
securities/NNS
firms/NNS
./.
Mr./NNP
Peters/NNP
,/,
a/DT
LaSalle/NNP
Street/NNP
legend/NN
among/IN
the/DT
post-World/JJ
War/NNP
II/NNP
generation/NN
of/IN
commodity/NN
traders/NNS
,/,
was/VBD
rumored/VBN
to/TO
have/VB
amassed/VBN
a/DT
multimillion-dollar/JJ
fortune/NN
from/IN
commodity/NN
trading/NN
and/CC
other/JJ
activities/NNS
by/IN
the/DT
time/NN
he/PRP
died/VBD
in/IN
May/NNP
./.
Part/NN
of/IN
a/DT
Series/NN
Betty/NNP
Lombardi/NNP
is/VBZ
a/DT
mild-mannered/JJ
homemaker/NN
and/CC
grandmother/NN
in/IN
rural/JJ
Hunterdon/NNP
County/NNP
,/,
N.J/NNP
./.
But/CC
put/VB
her/PRP
behind/IN
a/DT
shopping/NN
cart/NN
and/CC
she/PRP
turns/VBZ
ruthless/JJ
./.
If/IN
Colgate/NNP
toothpaste/NN
offers/VBZ
a/DT
tempting/JJ
money-saving/NN
coupon/NN
,/,
she/PRP
'll/MD
cross/VB
Crest/NNP
off/IN
her/PRP$
shopping/NN
list/NN
without/IN
a/DT
second/JJ
thought/NN
./.
Never/RB
mind/VB
that/DT
her/PRP$
husband/NN
prefers/VBZ
Crest/NNP
./.
Some/DT
weeks/NNS
when/WRB
her/PRP$
supermarket/NN
runs/VBZ
a/DT
double-coupon/NN
promotion/NN
,/,
she/PRP
boasts/VBZ
that/IN
she/PRP
shaves/VBZ
$/$
22/CD
off/IN
her/PRP$
bill/NN
./.
Money/NN
is/VBZ
n't/RB
the/DT
only/JJ
thing/NN
that/WDT
makes/VBZ
her/PRP
dump/VB
once/RB
favorite/JJ
brands/NNS
./.
After/IN
she/PRP
heard/VBD
about/IN
the/DT
artery-clogging/NN
hazards/NNS
of/IN
tropical/JJ
oils/NNS
in/IN
many/JJ
cookies/NNS
,/,
she/PRP
dropped/VBD
Pepperidge/NNP
Farm/NNP
and/CC
started/VBD
buying/VBG
brands/NNS
free/JJ
of/IN
such/JJ
oils/NNS
./.
``/``
I/PRP
always/RB
thought/VBD
Pepperidge/NNP
Farm/NNP
was/VBD
tasty/JJ
and/CC
high/JJ
quality/NN
,/,
''/''
Mrs./NNP
Lombardi/NNP
says/VBZ
./.
``/``
But/CC
I/PRP
do/VBP
n't/RB
want/VB
any/DT
of/IN
that/DT
oil/NN
for/IN
my/PRP$
grandkids/NNS
./.
''/''
(/(
Pepperidge/NNP
Farm/NNP
says/VBZ
it/PRP
ca/MD
n't/RB
tell/VB
exactly/RB
how/WRB
many/JJ
customers/NNS
it/PRP
has/VBZ
lost/VBN
,/,
but/CC
it/PRP
hopes/VBZ
to/TO
remove/VB
the/DT
objectionable/JJ
tropical/JJ
oil/NN
from/IN
all/DT
its/PRP$
products/NNS
by/IN
year/NN
end/NN
./.
Clearly/RB
,/,
people/NNS
like/IN
Mrs./NNP
Lombardi/NNP
are/VBP
giving/VBG
marketers/NNS
fits/NNS
./.
She/PRP
represents/VBZ
a/DT
new/JJ
breed/NN
of/IN
savvy/JJ
consumer/NN
who/WP
puts/VBZ
bargain/NN
prices/NNS
,/,
nutritional/JJ
and/CC
environmental/JJ
concerns/NNS
,/,
and/CC
other/JJ
priorities/NNS
ahead/RB
of/IN
old-fashioned/JJ
brand/NN
loyalty/NN
./.
While/IN
brand/NN
loyalty/NN
is/VBZ
far/RB
from/IN
dead/JJ
,/,
marketing/NN
experts/NNS
say/VBP
it/PRP
has/VBZ
eroded/VBN
during/IN
the/DT
1980s/NNS
./.
Marketers/NNS
themselves/PRP
are/VBP
partly/RB
to/TO
blame/VB
:/:
They/PRP
've/VBP
increased/VBN
spending/VBG
for/IN
coupons/NNS
and/CC
other/JJ
short-term/JJ
promotions/NNS
at/IN
the/DT
expense/NN
of/IN
image-building/JJ
advertising/NN
./.
What/WP
's/VBZ
more/JJR
,/,
a/DT
flood/NN
of/IN
new/JJ
products/NNS
has/VBZ
given/VBN
consumers/NNS
a/DT
dizzying/JJ
choice/NN
of/IN
brands/NNS
,/,
many/JJ
of/IN
which/WDT
are/VBP
virtually/RB
carbon/NN
copies/NNS
of/IN
one/CD
other/JJ
./.
``/``
Marketers/NNS
have/VBP
brought/VBN
this/DT
on/IN
themselves/PRP
with/IN
their/PRP$
heavy/JJ
use/NN
''/''
of/IN
promotions/NNS
,/,
contends/VBZ
Joe/NNP
Plummer/NNP
,/,
an/DT
executive/NN
vice/NN
president/NN
at/IN
the/DT
D'Arcy/NNP
Masius/NNP
Benton/NNP
&/CC
Bowles/NNP
ad/NN
agency/NN
./.
``/``
Without/IN
some/DT
real/JJ
product/NN
improvements/NNS
,/,
it/PRP
's/VBZ
going/VBG
to/TO
be/VB
difficult/JJ
to/TO
win/VB
that/DT
loyalty/NN
back/RB
./.
''/''
The/DT
Wall/NNP
Street/NNP
Journal/NNP
's/POS
``/``
American/JJ
Way/NN
of/IN
Buying/NN
''/''
survey/NN
this/DT
year/NN
found/VBD
that/IN
most/JJS
consumers/NNS
switch/VBP
brands/NNS
for/IN
many/JJ
of/IN
the/DT
products/NNS
they/PRP
use/VBP
./.
For/IN
the/DT
survey/NN
,/,
Peter/NNP
D./NNP
Hart/NNP
Research/NNP
Associates/NNPS
asked/VBD
some/DT
2,000/CD
consumers/NNS
,/,
including/VBG
Mrs./NNP
Lombardi/NNP
,/,
whether/IN
they/PRP
usually/RB
buy/VBP
one/CD
brand/NN
of/IN
a/DT
certain/JJ
type/NN
of/IN
product/NN
or/CC
have/VB
no/DT
brand/NN
loyalty/NN
./.
More/JJR
than/IN
half/PDT
the/DT
users/NNS
of/IN
17/CD
of/IN
the/DT
25/CD
products/NNS
included/VBN
in/IN
the/DT
survey/NN
said/VBD
they/PRP
're/VBP
brand/NN
switchers/NNS
./.
Overall/RB
,/,
12/CD
%/NN
of/IN
consumers/NNS
are/VBP
n't/RB
brand/NN
loyal/JJ
for/IN
any/DT
of/IN
the/DT
25/CD
product/NN
categories/NNS
./.
About/IN
47/CD
%/NN
are/VBP
loyal/JJ
for/IN
one/CD
to/TO
five/CD
of/IN
the/DT
products/NNS
./.
Only/RB
2/CD
%/NN
are/VBP
brand/NN
loyal/JJ
in/IN
16/CD
to/TO
20/CD
of/IN
the/DT
categories/NNS
,/,
and/CC
no/DT
one/NN
is/VBZ
loyal/JJ
for/IN
more/JJR
than/IN
20/CD
types/NNS
of/IN
products/NNS
./.
For/IN
such/JJ
products/NNS
as/IN
canned/JJ
vegetables/NNS
and/CC
athletic/JJ
shoes/NNS
,/,
devotion/NN
to/TO
a/DT
single/JJ
brand/NN
was/VBD
quite/RB
low/JJ
,/,
with/IN
fewer/JJR
than/IN
30/CD
%/NN
saying/VBG
they/PRP
usually/RB
buy/VBP
the/DT
same/JJ
brand/NN
./.
Only/RB
for/IN
cigarettes/NNS
,/,
mayonnaise/NN
and/CC
toothpaste/NN
did/VBD
more/JJR
than/IN
60/CD
%/NN
of/IN
users/NNS
say/VB
they/PRP
typically/RB
stick/VBP
with/IN
the/DT
same/JJ
brand/NN
./.
People/NNS
tend/VBP
to/TO
be/VB
most/RBS
loyal/JJ
to/TO
brands/NNS
that/WDT
have/VBP
distinctive/JJ
flavors/NNS
,/,
such/JJ
as/IN
cigarettes/NNS
and/CC
ketchup/NN
./.
Kathie/NNP
Huff/NNP
,/,
a/DT
respondent/NN
in/IN
the/DT
Journal/NNP
survey/NN
from/IN
Spokane/NNP
,/,
Wash./NNP
,/,
says/VBZ
her/PRP$
husband/NN
is/VBZ
adamant/JJ
about/IN
eating/VBG
only/JJ
Hunt/NNP
's/POS
ketchup/NN
./.
He/PRP
simply/RB
ca/MD
n't/RB
stomach/VB
the/DT
taste/NN
of/IN
Heinz/NNP
,/,
she/PRP
says/VBZ
./.
The/DT
31-year-old/JJ
homemaker/NN
adds/VBZ
,/,
``/``
The/DT
only/RB
other/JJ
thing/NN
I/PRP
'm/VBP
really/RB
loyal/JJ
to/TO
is/VBZ
my/PRP$
Virginia/NNP
Slims/NNP
cigarettes/NNS
./.
Coke/NNP
and/CC
Pepsi/NNP
are/VBP
all/PDT
the/DT
same/JJ
to/TO
me/PRP
,/,
and/CC
I/PRP
usually/RB
buy/VBP
whichever/WDT
brand/NN
of/IN
coffee/NN
happens/VBZ
to/TO
be/VB
on/IN
sale/NN
./.
''/''
Brand/NN
imagery/NN
plays/VBZ
a/DT
significant/JJ
role/NN
in/IN
loyalty/NN
to/TO
such/JJ
products/NNS
as/IN
cigarettes/NNS
,/,
perfume/NN
and/CC
beer/NN
./.
People/NNS
often/RB
stay/VBP
with/IN
a/DT
particular/JJ
brand/NN
because/IN
they/PRP
want/VBP
to/TO
be/VB
associated/VBN
with/IN
the/DT
image/NN
its/PRP$
advertising/NN
conveys/VBZ
,/,
whether/IN
that/DT
's/VBZ
macho/NN
Marlboro/NNP
cigarettes/NNS
or/CC
Cher/NNP
's/POS
Uninhibited/NNP
perfume/NN
./.
Loyalty/NN
lags/VBZ
most/RBS
for/IN
utilitarian/JJ
products/NNS
like/IN
trash/NN
bags/NNS
and/CC
batteries/NNS
./.
Only/RB
23/CD
%/NN
of/IN
trash-bag/NN
users/NNS
in/IN
the/DT
Journal/NNP
survey/NN
usually/RB
buy/VBP
the/DT
same/JJ
brand/NN
,/,
and/CC
just/RB
29/CD
%/NN
of/IN
battery/NN
buyers/NNS
stick/VBP
to/TO
one/CD
brand/NN
./.
Underwear/NN
scored/VBD
a/DT
middling/JJ
36/CD
%/NN
in/IN
brand/NN
loyalty/NN
,/,
but/CC
consumer/NN
researchers/NNS
say/VBP
that/DT
's/VBZ
actually/RB
quite/RB
high/JJ
for/IN
such/JJ
a/DT
mundane/JJ
product/NN
./.
``/``
In/IN
the/DT
past/NN
,/,
you/PRP
just/RB
wore/VBD
Fruit/NNP
of/IN
the/DT
Loom/NNP
and/CC
did/VBD
n't/RB
care/VB
,/,
''/''
says/VBZ
Peter/NNP
Kim/NNP
,/,
U.S./NNP
director/NN
of/IN
consumer/NN
behavior/NN
research/NN
for/IN
the/DT
J./NNP
Walter/NNP
Thompson/NNP
ad/NN
agency/NN
./.
``/``
The/DT
high/JJ
score/NN
reflects/VBZ
the/DT
attempts/NNS
to/TO
make/VB
underwear/NN
more/JJR
of/IN
a/DT
fashion/NN
image/NN
business/NN
for/IN
both/DT
men/NNS
and/CC
women/NNS
./.
''/''
He/PRP
believes/VBZ
there/EX
's/VBZ
opportunity/NN
for/IN
a/DT
smart/JJ
gasoline/NN
marketer/NN
to/TO
create/VB
a/DT
strong/JJ
brand/NN
image/NN
and/CC
more/JJR
consumer/NN
loyalty/NN
./.
What/WP
loyalty/NN
there/EX
is/VBZ
to/TO
gas/NN
brands/NNS
,/,
he/PRP
believes/VBZ
,/,
is/VBZ
a/DT
matter/NN
of/IN
stopping/VBG
at/IN
the/DT
most/RBS
conveniently/RB
located/JJ
service/NN
stations/NNS
./.
Brand/NN
loyalty/NN
was/VBD
stronger/JJR
among/IN
older/JJR
consumers/NNS
in/IN
the/DT
Journal/NNP
survey/NN
./.
Nearly/RB
one-fourth/NN
of/IN
participants/NNS
age/NN
60/CD
and/CC
older/JJR
claim/VBP
brand/NN
loyalty/NN
for/IN
more/JJR
than/IN
10/CD
of/IN
the/DT
25/CD
products/NNS
in/IN
the/DT
survey/NN
;/:
only/RB
9/CD
%/NN
of/IN
those/DT
age/NN
18/CD
to/TO
29/CD
have/VBP
such/JJ
strong/JJ
allegiance/NN
./.
Higher-income/JJR
people/NNS
also/RB
tend/VB
to/TO
be/VB
more/RBR
brand/NN
loyal/JJ
these/DT
days/NNS
,/,
the/DT
Journal/NNP
survey/NN
and/CC
other/JJ
research/NN
studies/NNS
indicate/VBP
./.
Marketers/NNS
speculate/VBP
that/IN
more/JJR
affluent/JJ
people/NNS
tend/VBP
to/TO
lead/VB
more/RBR
pressured/JJ
lives/NNS
and/CC
do/VBP
n't/RB
have/VB
time/NN
to/TO
research/VB
the/DT
products/NNS
they/PRP
buy/VBP
for/IN
the/DT
highest/JJS
quality/NN
and/CC
most/RBS
reasonable/JJ
price/NN
./.
An/DT
established/JJ
brand/NN
name/NN
is/VBZ
insurance/NN
that/IN
at/IN
least/JJS
the/DT
product/NN
will/MD
be/VB
of/IN
acceptable/JJ
quality/NN
,/,
if/IN
not/RB
always/RB
the/DT
best/JJS
value/NN
for/IN
the/DT
money/NN
./.
It/PRP
's/VBZ
sort/NN
of/IN
loyalty/NN
by/IN
default/NN
./.
Meanwhile/RB
,/,
``/``
the/DT
bottom/JJ
end/NN
of/IN
the/DT
market/NN
is/VBZ
becoming/VBG
less/RBR
loyal/JJ
,/,
''/''
says/VBZ
Laurel/NNP
Cutler/NNP
,/,
vice/NN
chairman/NN
of/IN
the/DT
ad/NN
agency/NN
FCB\/Leber/NNP
Katz/NNP
Partners/NNPS
./.
``/``
They/PRP
're/VBP
buying/VBG
whatever/WDT
's/VBZ
cheaper/JJR
./.
''/''
The/DT
biggest/JJS
wild/JJ
card/NN
in/IN
the/DT
brand/NN
loyalty/NN
game/NN
:/:
How/WRB
those/DT
hotly/RB
pursued/JJ
but/CC
highly/RB
unpredictable/JJ
baby/NN
boomers/NNS
will/MD
behave/VB
as/IN
they/PRP
move/VBP
into/IN
middle/JJ
age/NN
./.
They/PRP
grew/VBD
up/RB
with/IN
more/JJR
brand/NN
choices/NNS
than/IN
any/DT
generation/NN
and/CC
have/VBP
shown/VBN
less/JJR
allegiance/NN
so/RB
far/RB
./.
But/CC
now/RB
that/IN
they/PRP
're/VBP
settling/VBG
down/RB
and/CC
raising/VBG
families/NNS
,/,
might/MD
they/PRP
also/RB
show/VB
more/JJR
stability/NN
in/IN
their/PRP$
brand/NN
choices/NNS
?/.
Mr./NNP
Kim/NNP
of/IN
J./NNP
Walter/NNP
Thompson/NNP
does/VBZ
n't/RB
think/VB
so/RB
./.
He/PRP
believes/VBZ
baby/NN
boomers/NNS
will/MD
continue/VB
to/TO
be/VB
selective/JJ
in/IN
their/PRP$
brand/NN
loyalties/NNS
./.
``/``
Earlier/JJR
generations/NNS
were/VBD
brand/NN
loyal/JJ
across/IN
categories/NNS
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
but/CC
boomers/NNS
tend/VBP
to/TO
be/VB
brand/NN
loyal/JJ
in/IN
categories/NNS
like/IN
running/NN
shoes/NNS
and/CC
bottled/JJ
water/NN
,/,
but/CC
less/RBR
so/RB
in/IN
others/NNS
like/IN
toilet/NN
paper/NN
and/CC
appliances/NNS
./.
''/''
While/IN
not/RB
as/RB
brand/NN
loyal/JJ
as/IN
in/IN
the/DT
past/NN
,/,
consumers/NNS
today/NN
do/VBP
n't/RB
buy/VB
products/NNS
capriciously/RB
,/,
either/RB
./.
Rather/RB
,/,
they/PRP
tend/VBP
to/TO
have/VB
a/DT
set/NN
of/IN
two/CD
or/CC
three/CD
favorites/NNS
./.
Sometimes/RB
,/,
they/PRP
'll/MD
choose/VB
Ragu/NNP
spaghetti/NNS
sauce/NN
;/:
other/JJ
times/NNS
,/,
it/PRP
will/MD
be/VB
Prego/NNP
./.
Advertisers/NNS
attribute/VBP
this/DT
shared/JJ
loyalty/NN
to/TO
the/DT
striking/JJ
similarity/NN
among/IN
brands/NNS
./.
If/IN
a/DT
more/RBR
absorbent/JJ
Pampers/NNPS
hits/VBZ
the/DT
market/NN
,/,
you/PRP
can/MD
be/VB
sure/JJ
a/DT
new/JJ
and/CC
improved/JJ
Huggies/NNPS
wo/MD
n't/RB
be/VB
far/RB
behind/RB
./.
The/DT
BBDO/NNP
Worldwide/NNP
ad/NN
agency/NN
studied/VBD
``/``
brand/NN
parity/NN
''/''
and/CC
found/VBD
that/IN
consumers/NNS
believe/VBP
all/DT
brands/NNS
are/VBP
about/IN
the/DT
same/JJ
in/IN
a/DT
number/NN
of/IN
categories/NNS
,/,
particularly/RB
credit/NN
cards/NNS
,/,
paper/NN
towels/NNS
,/,
dry/JJ
soups/NNS
and/CC
snack/NN
chips/NNS
./.
``/``
When/WRB
there/EX
's/VBZ
a/DT
clutter/NN
of/IN
brands/NNS
,/,
consumers/NNS
simplify/VBP
the/DT
complexity/NN
by/IN
telling/VBG
themselves/PRP
,/,
`/``
All/DT
brands/NNS
are/VBP
the/DT
same/JJ
so/CC
what/WDT
difference/NN
does/VBZ
it/PRP
make/VB
which/WDT
I/PRP
buy/VBP
,/,
'/''
''/''
says/VBZ
Karen/NNP
Olshan/NNP
,/,
a/DT
senior/JJ
vice/NN
president/NN
at/IN
BBDO/NNP
./.
``/``
Too/RB
often/RB
,/,
advertising/NN
imagery/NN
has/VBZ
n't/RB
done/VBN
a/DT
good/JJ
job/NN
of/IN
forging/VBG
a/DT
special/JJ
emotional/JJ
bond/NN
between/IN
a/DT
brand/NN
and/CC
the/DT
consumer/NN
./.
''/''
But/CC
given/VBN
such/JJ
strong/JJ
brand/NN
disloyalty/NN
,/,
some/DT
marketers/NNS
are/VBP
putting/VBG
renewed/VBN
emphasis/NN
on/IN
image/NN
advertising/NN
./.
A/DT
small/JJ
but/CC
growing/VBG
number/NN
of/IN
companies/NNS
are/VBP
also/RB
trying/VBG
to/TO
instill/VB
more/RBR
fervent/JJ
brand/NN
loyalty/NN
through/IN
such/JJ
personalized/JJ
direct-marketing/NN
ploys/NNS
as/IN
catalogs/NNS
,/,
magazines/NNS
and/CC
membership/NN
clubs/NNS
for/IN
brand/NN
users/NNS
./.
While/IN
discount/NN
promotions/NNS
are/VBP
essential/JJ
for/IN
most/JJS
brands/NNS
,/,
some/DT
companies/NNS
concede/VBP
they/PRP
went/VBD
overboard/RB
in/IN
shifting/VBG
money/NN
from/IN
advertising/NN
to/TO
coupons/NNS
,/,
refunds/NNS
and/CC
other/JJ
sales/NNS
incentives/NNS
./.
Some/DT
people/NNS
argue/VBP
that/IN
strong/JJ
brands/NNS
can/MD
afford/VB
to/TO
stop/VB
advertising/VBG
for/IN
a/DT
time/NN
because/IN
of/IN
the/DT
residual/JJ
impact/NN
of/IN
hundreds/NNS
of/IN
millions/NNS
of/IN
dollars/NNS
spent/VBN
on/IN
advertising/NN
through/IN
the/DT
years/NNS
./.
But/CC
most/JJS
companies/NNS
are/VBP
too/RB
afraid/JJ
to/TO
take/VB
that/DT
chance/NN
./.
And/CC
perhaps/RB
with/IN
good/JJ
reason/NN
./.
Says/VBZ
Clayt/NNP
Wilhite/NNP
,/,
president/NN
of/IN
the/DT
D'Arcy/NNP
Masius/NNP
ad/NN
agency/NN
's/POS
U.S./NNP
division/NN
,/,
``/``
Every/DT
time/NN
24/CD
hours/NNS
pass/VBP
without/IN
any/DT
advertising/NN
reinforcement/NN
,/,
brand/NN
loyalty/NN
will/MD
diminish/VB
ever/RB
so/RB
slightly/RB
--/:
even/RB
for/IN
a/DT
powerful/JJ
brand/NN
like/IN
Budweiser/NNP
./.
''/''
Consider/VB
,/,
for/IN
example/NN
,/,
what/WP
happened/VBD
to/TO
Maxwell/NNP
House/NNP
coffee/NN
./.
The/DT
Kraft/NNP
General/NNP
Foods/NNPS
brand/NN
stopped/VBD
advertising/VBG
for/IN
about/IN
a/DT
year/NN
in/IN
1987/CD
and/CC
gave/VBD
up/RP
several/JJ
market/NN
share/NN
points/NNS
and/CC
its/PRP$
leadership/NN
position/NN
in/IN
the/DT
coffee/NN
business/NN
./.
But/CC
since/IN
returning/VBG
to/TO
advertising/NN
,/,
Maxwell/NNP
House/NNP
has/VBZ
regained/VBN
the/DT
lost/JJ
share/NN
and/CC
is/VBZ
running/VBG
neck/NN
and/CC
neck/NN
with/IN
archrival/JJ
Folgers/NNP
./.
``/``
Now/RB
,/,
Philip/NNP
Morris/NNP
Kraft/NNP
General/NNP
Foods/NNPS
'/POS
parent/NN
company/NN
the/DT
coffee/NN
business/NN
and/CC
to/TO
increased/VBN
advertising/NN
for/IN
Maxwell/NNP
House/NNP
,/,
''/''
says/VBZ
Dick/NNP
Mayer/NNP
,/,
president/NN
of/IN
the/DT
General/NNP
Foods/NNPS
USA/NNP
division/NN
./.
``/``
Even/RB
though/IN
brand/NN
loyalty/NN
is/VBZ
rather/RB
strong/JJ
for/IN
coffee/NN
,/,
we/PRP
need/VBP
advertising/NN
to/TO
maintain/VB
and/CC
strengthen/VB
it/PRP
./.
''/''
Campbell/NNP
Soup/NNP
Co./NNP
,/,
for/IN
one/CD
,/,
has/VBZ
concluded/VBN
that/IN
it/PRP
makes/VBZ
good/JJ
sense/NN
to/TO
focus/VB
more/RBR
on/IN
its/PRP$
most/RBS
loyal/JJ
customers/NNS
than/IN
on/IN
people/NNS
who/WP
buy/VBP
competitive/JJ
brands/NNS
./.
``/``
The/DT
probability/NN
of/IN
converting/VBG
a/DT
non-user/NN
to/TO
your/PRP$
brand/NN
is/VBZ
about/IN
three/CD
in/IN
1,000/CD
,/,
''/''
says/VBZ
Tony/NNP
Adams/NNP
,/,
the/DT
company/NN
's/POS
vice/NN
president/NN
for/IN
marketing/NN
research/NN
./.
``/``
The/DT
best/JJS
odds/NNS
are/VBP
with/IN
your/PRP$
core/NN
franchise/NN
./.
Our/PRP$
heavy/JJ
users/NNS
consume/VBP
two/CD
to/TO
three/CD
cans/NNS
of/IN
soup/NN
a/DT
week/NN
,/,
and/CC
we/PRP
'd/MD
like/VB
to/TO
increase/VB
that/DT
./.
''/''
So/CC
Campbell/NNP
is/VBZ
talking/VBG
to/TO
its/PRP$
``/``
brand/NN
enthusiasts/NNS
,/,
''/''
probing/VBG
their/PRP$
psychological/JJ
attachment/NN
to/TO
its/PRP$
soup/NN
./.
In/IN
one/CD
consumer/NN
focus/NN
group/NN
,/,
a/DT
fan/NN
declared/VBD
that/IN
,/,
``/``
Campbell/NNP
's/POS
soup/NN
is/VBZ
like/IN
getting/VBG
a/DT
hug/NN
from/IN
a/DT
friend/NN
./.
''/''
That/DT
helped/VBD
persuade/VB
the/DT
company/NN
to/TO
introduce/VB
a/DT
new/JJ
advertising/NN
slogan/NN
:/:
``/``
A/DT
warm/JJ
hug/NN
from/IN
Campbell/NNP
's/POS
./.
''/''
brand/NN
Insurers/NNS
face/VBP
the/DT
prospect/NN
of/IN
paying/VBG
out/RP
billions/NNS
of/IN
dollars/NNS
for/IN
damages/NNS
caused/VBN
by/IN
this/DT
week/NN
's/POS
California/NNP
earthquake/NN
./.
Getting/VBG
a/DT
grip/NN
on/IN
the/DT
extent/NN
of/IN
the/DT
damages/NNS
is/VBZ
proving/VBG
a/DT
far/RB
more/RBR
difficult/JJ
task/NN
than/IN
what/WP
insurers/NNS
faced/VBN
after/IN
Hurricane/NNP
Hugo/NNP
ripped/VBD
through/IN
the/DT
Caribbean/NNP
and/CC
the/DT
Carolinas/NNPS
last/JJ
month/NN
./.
The/DT
earthquake/NN
's/POS
toll/NN
,/,
including/VBG
possible/JJ
deep/JJ
structural/JJ
damage/NN
,/,
goes/VBZ
far/RB
beyond/IN
the/DT
more/RBR
easily/RB
observed/JJ
damage/NN
from/IN
a/DT
hurricane/NN
,/,
says/VBZ
George/NNP
Reider/NNP
,/,
a/DT
vice/NN
president/NN
in/IN
Aetna/NNP
Life/NNP
&/CC
Casualty/NNP
Insurance/NNP
Co./NNP
's/POS
claims/NNS
division/NN
./.
But/CC
investors/NNS
are/VBP
betting/VBG
that/IN
the/DT
financial/JJ
and/CC
psychological/JJ
impact/NN
of/IN
the/DT
earthquake/NN
,/,
coming/VBG
so/RB
soon/RB
after/IN
the/DT
hurricane/NN
,/,
will/MD
help/VB
stem/NN
more/JJR
than/IN
two/CD
years/NNS
of/IN
intense/JJ
price-cutting/JJ
wars/NNS
among/IN
business/NN
insurers/NNS
./.
Reflecting/VBG
that/DT
logic/NN
,/,
insurance-company/NN
stocks/NNS
posted/VBD
strong/JJ
gains/NNS
./.
Aetna/NNP
and/CC
other/JJ
insurers/NNS
are/VBP
hiring/VBG
engineers/NNS
and/CC
architects/NNS
to/TO
help/VB
them/PRP
assess/VB
structural/JJ
damage/NN
./.
Most/JJS
insurers/NNS
already/RB
have/VBP
mobilized/VBN
their/PRP$
``/``
catastrophe/NN
''/''
teams/NNS
to/TO
begin/VB
processing/VBG
claims/NNS
from/IN
their/PRP$
policyholders/NNS
in/IN
northern/JJ
California/NNP
./.
Since/IN
commercial/JJ
air/NN
travel/NN
is/VBZ
interrupted/JJ
,/,
Aetna/NNP
,/,
based/VBN
in/IN
Hartford/NNP
,/,
Conn./NNP
,/,
chartered/VBD
three/CD
planes/NNS
to/TO
fly/VB
claims/NNS
adjusters/NNS
into/IN
Sacramento/NNP
and/CC
then/RB
planned/VBD
for/IN
them/PRP
to/TO
drive/VB
to/TO
the/DT
Bay/NNP
area/NN
./.
About/IN
25/CD
adjusters/NNS
were/VBD
dispatched/VBN
yesterday/RB
afternoon/NN
,/,
along/IN
with/IN
laptop/NN
computers/NNS
,/,
cellular/JJ
phones/NNS
and/CC
blank/JJ
checks/NNS
./.
Some/DT
adjusters/NNS
,/,
already/RB
in/IN
other/JJ
parts/NNS
of/IN
California/NNP
,/,
drove/VBD
to/TO
the/DT
disaster/NN
area/NN
with/IN
recreational/JJ
vehicles/NNS
and/CC
mobile/JJ
homes/NNS
that/WDT
could/MD
be/VB
used/VBN
as/IN
makeshift/JJ
claims-processing/NN
centers/NNS
./.
Insurers/NNS
will/MD
be/VB
advertising/VBG
800/CD
numbers/NNS
--/:
probably/RB
on/IN
the/DT
radio/NN
--/:
that/IN
policyholders/NNS
can/MD
call/VB
to/TO
get/VB
assistance/NN
on/IN
how/WRB
to/TO
submit/VB
claims/NNS
./.
State/NNP
Farm/NNP
Mutual/NNP
Automobile/NNP
Insurance/NNP
Co./NNP
,/,
the/DT
largest/JJS
home/NN
and/CC
auto/NN
insurer/NN
in/IN
California/NNP
,/,
believes/VBZ
the/DT
losses/NNS
from/IN
the/DT
earthquake/NN
could/MD
be/VB
somewhat/RB
less/JJR
than/IN
the/DT
$/$
475/CD
million/CD
in/IN
damages/VBZ
it/PRP
expects/VBZ
to/TO
pay/VB
out/IN
for/IN
claims/NNS
resulting/VBG
from/IN
Hurricane/NNP
Hugo/NNP
./.
State/NNP
Farm/NNP
,/,
based/VBN
in/IN
Bloomington/NNP
,/,
Ind./NNP
,/,
is/VBZ
also/RB
the/DT
largest/JJS
writer/NN
of/IN
personal-property/NN
earthquake/NN
insurance/NN
in/IN
California/NNP
./.
Earthquake/NN
insurance/NN
is/VBZ
sold/VBN
as/IN
a/DT
separate/JJ
policy/NN
or/CC
a/DT
specific/JJ
endorsement/NN
``/``
rider/NN
''/''
on/IN
a/DT
homeowner/NN
's/POS
policy/NN
in/IN
California/NNP
,/,
because/IN
of/IN
the/DT
area/NN
's/POS
vulnerability/NN
to/TO
earthquakes/NNS
./.
State/NNP
Farm/NNP
said/VBD
about/IN
25/CD
%/NN
of/IN
its/PRP$
policyholders/NNS
in/IN
California/NNP
have/VBP
also/RB
purchased/VBN
earthquake/NN
insurance/NN
./.
Allstate/NNP
Insurance/NNP
Co./NNP
,/,
a/DT
unit/NN
of/IN
Sears/NNP
,/,
Roebuck/NNP
&/CC
Co./NNP
,/,
said/VBD
about/IN
23/CD
%/NN
of/IN
its/PRP$
personal/JJ
property/NN
policyholders/NNS
--/:
about/IN
28/CD
%/NN
in/IN
the/DT
San/NNP
Franciso/NNP
area/NN
--/:
also/RB
have/VB
earthquake/NN
coverage/NN
./.
The/DT
Association/NNP
of/IN
California/NNP
Insurance/NNP
Companies/NNPS
estimated/VBD
damage/NN
to/TO
residential/JJ
property/NN
could/MD
total/VB
$/$
500/CD
million/CD
,/,
but/CC
only/RB
$/$
100/CD
million/CD
to/TO
$/$
150/CD
million/CD
is/VBZ
insured/VBN
,/,
it/PRP
said/VBD
./.
Officials/NNS
from/IN
the/DT
American/NNP
Insurance/NNP
Association/NNP
's/POS
property-claim/NN
service/NN
division/NN
,/,
which/WDT
coordinates/VBZ
the/DT
efforts/NNS
of/IN
the/DT
claims/NNS
adjusters/NNS
in/IN
an/DT
area/NN
after/IN
a/DT
natural/JJ
disaster/NN
,/,
will/MD
be/VB
flying/VBG
to/TO
San/NNP
Francisco/NNP
today/NN
./.
They/PRP
expect/VBP
to/TO
have/VB
a/DT
preliminary/JJ
estimate/NN
of/IN
the/DT
damages/NNS
in/IN
a/DT
day/NN
or/CC
two/CD
./.
Roads/NNS
and/CC
bridges/NNS
in/IN
the/DT
Bay/NNP
area/NN
appear/VBP
to/TO
have/VB
suffered/VBN
some/DT
of/IN
the/DT
most/RBS
costly/JJ
damage/NN
./.
Highways/NNS
,/,
such/JJ
as/IN
the/DT
section/NN
of/IN
Interstate/NN
880/CD
that/WDT
collapsed/VBD
in/IN
Oakland/NN
,/,
generally/RB
do/VBP
n't/RB
have/VB
insurance/NN
coverage/NN
./.
Industry/NN
officials/NNS
say/VBP
the/DT
Bay/NNP
Bridge/NNP
--/:
unlike/IN
some/DT
bridges/NNS
--/:
has/VBZ
no/DT
earthquake/NN
coverage/NN
,/,
either/RB
,/,
so/IN
the/DT
cost/NN
of/IN
repairing/VBG
it/PRP
probably/RB
would/MD
have/VB
to/TO
be/VB
paid/VBN
out/IN
of/IN
state/NN
general/JJ
operating/NN
funds/NNS
./.
However/RB
,/,
the/DT
bridge/NN
,/,
which/WDT
charges/VBZ
a/DT
$/$
1/CD
toll/NN
each/DT
way/NN
,/,
does/VBZ
have/VB
``/``
loss/NN
of/IN
income/NN
''/''
insurance/NN
to/TO
replace/VB
lost/VBN
revenue/NN
if/IN
the/DT
operation/NN
of/IN
the/DT
bridge/NN
is/VBZ
interrupted/JJ
for/IN
more/JJR
than/IN
seven/CD
days/NNS
./.
That/DT
coverage/NN
is/VBZ
provided/VBN
by/IN
a/DT
syndicate/NN
of/IN
insurance/NN
companies/NNS
including/VBG
Fireman/NNP
's/POS
Fund/NNP
Corp./NNP
,/,
based/VBN
in/IN
Novato/NNP
,/,
Calif./NNP
,/,
and/CC
Cigna/NNP
Corp./NNP
,/,
based/VBN
in/IN
Philadelphia/NNP
./.
Earthquake-related/JJ
claims/NNS
are/VBP
n't/RB
expected/VBN
to/TO
cause/VB
significant/JJ
financial/JJ
problems/NNS
for/IN
the/DT
insurance/NN
industry/NN
as/IN
a/DT
whole/NN
./.
Instead/RB
,/,
even/RB
with/IN
the/DT
liabilities/NNS
of/IN
two/CD
natural/JJ
disasters/NNS
in/IN
recent/JJ
weeks/NNS
,/,
analysts/NNS
said/VBD
the/DT
total/JJ
capital/NN
of/IN
the/DT
industry/NN
is/VBZ
likely/JJ
to/TO
be/VB
higher/JJR
at/IN
year/NN
end/NN
than/IN
it/PRP
was/VBD
at/IN
midyear/NN
./.
Indeed/RB
,/,
the/DT
earthquake/NN
could/MD
contribute/VB
to/TO
a/DT
turnaround/NN
in/IN
the/DT
insurance/NN
cycle/NN
in/IN
a/DT
couple/NN
of/IN
ways/NNS
./.
For/IN
example/NN
,/,
insurers/NNS
may/MD
seek/VB
to/TO
limit/VB
their/PRP$
future/JJ
exposure/NN
to/TO
catastrophes/NNS
by/IN
increasing/VBG
the/DT
amount/NN
of/IN
reinsurance/NN
they/PRP
buy/VBP
./.
Such/JJ
increased/VBN
demand/NN
for/IN
reinsurance/NN
,/,
along/IN
with/IN
the/DT
losses/NNS
the/DT
reinsurers/NNS
will/MD
bear/VB
from/IN
these/DT
two/CD
disasters/NNS
,/,
are/VBP
likely/JJ
to/TO
spur/VB
increases/NNS
in/IN
reinsurance/NN
prices/NNS
that/WDT
will/MD
later/RB
be/VB
translated/VBN
into/IN
an/DT
overall/JJ
price/NN
rise/NN
./.
Reinsurance/NN
is/VBZ
protection/NN
taken/VBN
out/RB
by/IN
the/DT
insurance/NN
firms/NNS
themselves/PRP
./.
``/``
We/PRP
are/VBP
saying/VBG
this/DT
is/VBZ
the/DT
breaking/JJ
point/NN
,/,
this/DT
is/VBZ
the/DT
event/NN
that/WDT
will/MD
change/VB
the/DT
psychology/NN
of/IN
the/DT
marketplace/NN
,/,
''/''
said/VBD
William/NNP
Yankus/NNP
,/,
an/DT
analyst/NN
with/IN
Conning/NNP
&/CC
Co./NNP
,/,
a/DT
Hartford/NNP
firm/NN
that/WDT
specializes/VBZ
in/IN
the/DT
insurance/NN
industry/NN
./.
His/PRP$
firm/NN
,/,
along/IN
with/IN
some/DT
others/NNS
,/,
issued/VBD
new/JJ
buy/JJ
recommendations/NNS
on/IN
insurer/NN
stocks/NNS
yesterday/NN
./.
Among/IN
the/DT
insurance/NN
stocks/NNS
,/,
big/JJ
gainers/NNS
included/VBD
American/NNP
International/NNP
Group/NNP
,/,
up/RB
$/$
3.25/CD
to/TO
$/$
102.625/CD
;/:
General/NNP
Re/NNP
Corp./NNP
,/,
up/RB
$/$
2.75/CD
to/TO
$/$
86.50/CD
;/:
Aetna/NNP
,/,
up/RB
$/$
2.375/CD
to/TO
$/$
59.50/CD
;/:
and/CC
Marsh/NNP
&/CC
McLennan/NNP
Inc./NNP
,/,
up/RB
$/$
3.125/CD
to/TO
$/$
75.875/CD
./.
Still/RB
,/,
a/DT
few/JJ
individual/JJ
companies/NNS
,/,
most/RBS
likely/JJ
smaller/JJR
ones/NNS
,/,
could/MD
be/VB
devastated/VBN
./.
``/``
I/PRP
think/VBP
there/EX
is/VBZ
a/DT
damned/RB
good/JJ
chance/NN
someone/NN
is/VBZ
going/VBG
to/TO
hit/VB
the/DT
skids/NNS
on/IN
this/DT
,/,
''/''
said/VBD
Oppenheimer/NNP
&/CC
Co./NNP
analyst/NN
Myron/NNP
Picoult/NNP
./.
He/PRP
suspects/VBZ
some/DT
insurers/NNS
who/WP
had/VBD
purchased/VBN
reinsurance/NN
to/TO
limit/VB
their/PRP$
exposure/NN
to/TO
catastrophes/NNS
will/MD
discover/VB
that/DT
reinsurance/NN
was/VBD
used/VBN
up/RB
by/IN
Hurricane/NNP
Hugo/NNP
./.
British/JJ
,/,
West/JJ
German/JJ
,/,
Scandinavian/JJ
and/CC
other/JJ
overseas/JJ
insurers/NNS
are/VBP
bracing/VBG
for/IN
big/JJ
claims/NNS
from/IN
the/DT
San/NNP
Francisco/NNP
earthquake/NN
disaster/NN
./.
Although/IN
it/PRP
's/VBZ
unclear/JJ
how/WRB
much/JJ
exposure/NN
the/DT
London/NNP
market/NN
will/MD
face/VB
,/,
U.K./NNP
underwriters/,
traditionally/RB
have/VBP
a/DT
large/JJ
reinsurance/NN
exposure/NN
to/TO
U.S./NNP
catastrophe/NN
coverage/NN
./.
Jack/NNP
Byrne/NNP
,/,
chairman/NN
of/IN
Fireman/NNP
's/POS
Fund/NNP
,/,
said/VBD
this/DT
disaster/NN
will/MD
test/VB
the/DT
catastrophe/NN
reinsurance/NN
market/NN
,/,
causing/VBG
these/DT
rates/NNS
to/TO
soar/VB
./.
The/DT
catastrophe/NN
losses/NNS
sustained/VBN
by/IN
insurers/NNS
this/DT
year/NN
will/MD
probably/RB
be/VB
the/DT
worst/JJS
on/IN
an/DT
inflation-adjusted/JJ
basis/NN
since/IN
1906/CD
--/:
when/WRB
another/DT
earthquake/NN
sparked/VBD
the/DT
Great/JJ
San/NNP
Francisco/NNP
Fire/NN
./.
Orin/NNP
Kramer/NNP
,/,
an/DT
insurance/NN
consultant/NN
in/IN
New/NNP
York/NNP
,/,
estimates/VBZ
that/IN
the/DT
1906/CD
San/NNP
Francisco/NNP
destruction/NN
,/,
on/IN
an/DT
inflation-adjusted/JJ
basis/NN
,/,
included/VBD
insured/JJ
losses/NNS
of/IN
$/$
5.8/CD
billion/CD
./.
He/PRP
is/VBZ
estimating/VBG
this/DT
week/NN
's/POS
disaster/NN
will/MD
generate/VB
insured/VBN
losses/NNS
of/IN
$/$
2/CD
billion/CD
to/TO
$/$
4/CD
billion/CD
,/,
following/VBG
about/IN
$/$
4/CD
billion/CD
in/IN
costs/NNS
to/TO
insurers/NNS
from/IN
Hurricane/NNP
Hugo/NNP
./.
Silicon/NNP
Graphics/NNPS
Inc./NNP
's/POS
first-quarter/NN
profit/NN
rose/VBD
sharply/RB
to/TO
$/$
5.2/CD
million/CD
,/,
or/CC
28/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
1/CD
million/CD
,/,
or/CC
six/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
ago/RB
./.
The/DT
maker/NN
of/IN
computer/NN
workstations/NNS
said/VBD
a/DT
surge/NN
of/IN
government/NN
orders/NNS
contributed/VBN
to/TO
the/DT
increase/NN
./.
Revenue/NN
rose/VBD
95/CD
%/NN
to/TO
$/$
86.4/CD
million/CD
from/IN
$/$
44.3/CD
million/CD
the/DT
year/NN
earlier/RB
./.
In/IN
national/JJ
over-the-counter/JJ
trading/NN
,/,
the/DT
company/NN
closed/VBD
yesterday/NN
at/IN
$/$
23.25/CD
a/DT
share/NN
,/,
down/RB
25/CD
cents/NNS
./.
Hunter/NNP
Environmental/NNP
Services/NNPS
Inc./NNP
said/VBD
it/PRP
reached/VBD
a/DT
preliminary/JJ
accord/NN
on/IN
the/DT
sale/NN
of/IN
its/PRP$
environmental/JJ
consulting/NN
and/CC
services/NNS
business/NN
for/IN
about/IN
$/$
40/CD
million/CD
and/CC
assumption/NN
of/IN
related/JJ
debt/NN
./.
The/DT
buyer/NN
was/VBD
n't/RB
identified/VBN
./.
The/DT
company/NN
said/VBD
it/PRP
also/RB
is/VBZ
making/VBG
progress/NN
in/IN
negotiating/VBG
the/DT
buy-out/NN
of/IN
its/PRP$
design/NN
division/NN
by/IN
management/NN
./.
In/IN
addition/NN
,/,
Hunter/NNP
said/VBD
it/PRP
will/MD
use/VB
proceeds/NNS
from/IN
a/DT
private/JJ
placement/NN
of/IN
$/$
8/CD
million/CD
of/IN
preferred/JJ
shares/NNS
to/TO
purchase/VB
an/DT
interest/NN
in/IN
a/DT
start-up/JJ
company/NN
to/TO
underwrite/VB
environmental/JJ
impairment/NN
insurance/NN
./.
Hunter/NNP
wants/VBZ
to/TO
concentrate/VB
its/PRP$
resources/NNS
on/IN
the/DT
insurance/NN
business/NN
and/CC
on/IN
a/DT
project/NN
to/TO
store/VB
hazardous/JJ
wastes/NNS
in/IN
salt/NN
domes/NNS
./.
Jaguar/NNP
PLC/NNP
's/POS
chairman/NN
said/VBD
he/PRP
hopes/VBZ
to/TO
reach/VB
a/DT
friendly/JJ
pact/NN
with/IN
General/NNP
Motors/NNPS
Corp./NNP
within/IN
a/DT
month/NN
that/WDT
may/MD
involve/VB
the/DT
British/JJ
luxury-car/NN
maker/NN
's/VBZ
producing/VBG
a/DT
cheaper/JJR
executive/NN
model/NN
./.
Sir/NNP
John/NNP
Egan/NNP
told/VBD
reporters/NNS
at/IN
London/NNP
's/POS
Motorfair/NNP
yesterday/NN
he/PRP
``/``
would/MD
be/VB
disappointed/VBN
if/IN
we/PRP
could/MD
n't/RB
do/VB
{/(
the/DT
deal/NN
a/DT
month/NN
./.
''/''
He/PRP
said/VBD
the/DT
tie-up/NN
would/MD
mean/VB
Jaguar/NNP
could/MD
``/``
develop/VB
cars/NNS
down/RB
range/NN
price/NN
we/PRP
are/VBP
''/''
by/IN
offering/VBG
access/NN
to/TO
GM/NNP
's/POS
high-volume/JJ
parts/NNS
production/NN
./.
Besides/IN
creating/VBG
joint/JJ
manufacturing/NN
ventures/NNS
,/,
the/DT
accord/NN
is/VBZ
expected/VBN
to/TO
give/VB
GM/NNP
about/IN
a/DT
15/CD
%/NN
stake/NN
that/WDT
eventually/RB
would/MD
rise/VB
to/TO
about/IN
30/CD
%/NN
./.
Jaguar/NNP
figures/VBZ
a/DT
friendly/JJ
alliance/NN
with/IN
GM/NNP
will/MD
fend/VB
off/RP
unwelcome/JJ
advances/NNS
from/IN
Ford/NNP
Motor/NNP
Co/NNP
./.
But/CC
Ford/NNP
,/,
Jaguar/NNP
's/POS
biggest/JJS
shareholder/NN
since/IN
lifting/VBG
its/PRP$
stake/NN
to/TO
10.4/CD
%/NN
this/DT
week/NN
,/,
is/VBZ
pressing/VBG
harder/RBR
for/IN
talks/NNS
with/IN
Sir/NNP
John/NNP
./.
``/``
We/PRP
're/VBP
getting/VBG
to/TO
the/DT
point/NN
where/WRB
we/PRP
are/VBP
going/VBG
to/TO
have/VB
to/TO
meet/VB
''/''
with/IN
him/PRP
,/,
one/CD
Ford/NNP
official/NN
said/VBD
yesterday/NN
./.
Ford/NNP
probably/RB
will/MD
renew/VB
its/PRP$
request/NN
for/IN
such/JJ
a/DT
meeting/NN
soon/RB
,/,
he/PRP
added/VBD
./.
Sir/NNP
John/NNP
has/VBZ
spurned/VBN
Ford/NNP
's/POS
advances/NNS
since/IN
the/DT
U.S./NNP
auto/NN
giant/NN
launched/VBD
a/DT
surprise/NN
bid/NN
for/IN
as/RB
much/JJ
as/IN
15/CD
%/NN
of/IN
Jaguar/NNP
last/JJ
month/NN
./.
Ford/NNP
has/VBZ
signaled/VBN
it/PRP
might/MD
acquire/VB
a/DT
majority/NN
interest/NN
later/RB
./.
``/``
I/PRP
'm/VBP
not/RB
obligated/VBN
to/TO
sit/VB
down/RB
and/CC
talk/VB
to/TO
anybody/NN
,/,
''/''
the/DT
Jaguar/NNP
chairman/NN
asserted/VBD
yesterday/NN
./.
He/PRP
did/VBD
n't/RB
rule/NN
out/IN
negotiations/NNS
with/IN
Ford/NNP
,/,
however/RB
./.
The/DT
fiercely/RB
proud/JJ
but/CC
financially/RB
strapped/JJ
British/JJ
company/NN
prefers/VBZ
to/TO
remain/VB
independent/JJ
and/CC
publicly/RB
held/JJ
,/,
despite/IN
Ford/NNP
's/POS
promise/NN
of/IN
access/NN
to/TO
cash/NN
and/CC
technological/JJ
know-how/NN
./.
Sir/NNP
John/NNP
noted/VBD
that/IN
GM/NNP
,/,
a/DT
longtime/NN
Jaguar/NNP
supplier/NN
,/,
agrees/VBZ
``/``
we/PRP
should/MD
remain/VB
an/DT
independent/JJ
company/NN
./.
''/''
He/PRP
said/VBD
Jaguar/NNP
started/VBD
negotiating/VBG
with/IN
GM/NNP
and/CC
several/JJ
other/JJ
car/NN
makers/NNS
over/IN
a/DT
year/NN
ago/RB
,/,
but/CC
the/DT
rest/NN
``/``
dropped/VBN
by/IN
the/DT
wayside/NN
ever/RB
since/IN
the/DT
share/NN
price/NN
went/VBD
above/IN
#/#
4/CD
$/$
6.30/CD
a/DT
share/NN
./.
''/''
Jaguar/NNP
shares/NNS
stood/VBD
at/IN
405/CD
pence/NN
before/IN
Ford/NNP
's/POS
initial/JJ
announcement/NN
,/,
but/CC
the/DT
subsequent/JJ
takeover/NN
frenzy/NN
has/VBZ
driven/VBN
them/PRP
up/RP
./.
The/DT
stock/NN
traded/VBD
late/JJ
yesterday/NN
on/IN
London/NNP
's/POS
stock/NN
exchange/NN
at/IN
673/CD
pence/NN
,/,
up/IN
19/CD
pence/NN
./.
Developing/VBG
an/DT
executive-model/JJ
range/NN
would/MD
mark/VB
a/DT
major/JJ
departure/NN
for/IN
Britain/NNP
's/POS
leading/VBG
luxury-car/NN
maker/NN
./.
A/DT
typical/JJ
British/JJ
executive/NN
car/NN
is/VBZ
mass/RB
produced/VBN
and/CC
smaller/JJR
than/IN
a/DT
luxury/NN
car/NN
./.
It/PRP
generally/RB
fetches/VBZ
no/RB
more/JJR
than/IN
#/#
25,000/CD
$/$
39,400/CD
16,000/CD
less/JJR
than/IN
the/DT
highest-priced/JJS
Jaguars/NNPS
,/,
which/WDT
are/VBP
all/DT
known/JJ
for/IN
their/PRP$
hand-crafted/JJ
leather/NN
work/NN
./.
``/``
We/PRP
have/VBP
designs/NNS
for/IN
such/JJ
executive/NN
cars/NNS
,/,
but/CC
have/VB
never/RB
been/VBN
able/JJ
to/TO
develop/VB
them/PRP
,/,
''/''
Sir/NNP
John/NNP
said/VBD
./.
GM/NNP
's/POS
help/NN
would/MD
``/``
make/VB
it/PRP
possible/JJ
{/(
for/IN
Jaguar/NNP
a/DT
wider/JJR
range/NN
of/IN
cars/NNS
./.
''/''
An/DT
executive/NN
model/NN
would/MD
significantly/RB
boost/VB
Jaguar/NNP
's/POS
yearly/JJ
output/NN
of/IN
50,000/CD
cars/NNS
./.
``/``
You/PRP
are/VBP
talking/VBG
about/IN
a/DT
couple/NN
hundred/CD
thousand/CD
a/DT
year/NN
,/,
''/''
said/VBD
Bob/NNP
Barber/NNP
,/,
an/DT
auto-industry/NN
analyst/NN
at/IN
U.K./NNP
brokerage/NN
James/NNP
Capel/NNP
&/CC
Co/NNP
./.
A/DT
pact/NN
with/IN
GM/NNP
may/MD
emerge/VB
in/IN
as/RB
little/JJ
as/IN
two/CD
weeks/NNS
,/,
according/VBG
to/TO
sources/NNS
close/RB
to/TO
the/DT
talks/NNS
./.
The/DT
deal/NN
would/MD
require/VB
approval/NN
by/IN
a/DT
majority/NN
of/IN
Jaguar/NNP
shareholders/NNS
./.
``/``
We/PRP
have/VBP
to/TO
make/VB
it/PRP
attractive/JJ
enough/RB
that/IN
{/(
holders/NNS
it/PRP
,/,
''/''
Sir/NNP
John/NNP
said/VBD
./.
That/DT
may/MD
be/VB
difficult/JJ
,/,
the/DT
Jaguar/NNP
chairman/NN
acknowledged/VBD
,/,
``/``
when/WRB
you/PRP
have/VBP
somebody/NN
else/RB
breathing/VBG
down/IN
your/PRP$
neck/NN
./.
''/''
Ford/NNP
probably/RB
would/MD
try/VB
to/TO
kill/VB
the/DT
proposal/NN
by/IN
enlisting/VBG
support/NN
from/IN
U.S./NNP
takeover-stock/NN
speculators/NNS
and/CC
holding/VBG
out/RP
the/DT
carrot/NN
of/IN
a/DT
larger/JJR
bid/NN
later/RB
,/,
said/VBD
Stephen/NNP
Reitman/NNP
,/,
European/JJ
auto/NN
analyst/NN
at/IN
London/NNP
brokers/NNS
UBS/NNP
Phillips/NNP
&/CC
Drew/NNP
./.
Ford/NNP
ca/MD
n't/RB
make/VB
a/DT
full-fledged/JJ
bid/NN
for/IN
Jaguar/NNP
until/IN
U.K./NNP
government/NN
restrictions/NNS
expire/VBP
./.
The/DT
anti-takeover/JJ
measure/NN
prevents/VBZ
any/DT
outside/JJ
investor/NN
from/IN
buying/VBG
more/JJR
than/IN
15/CD
%/NN
of/IN
Jaguar/NNP
shares/NNS
without/IN
permission/NN
until/IN
Dec./NNP
31/CD
,/,
1990/CD
./.
But/CC
with/IN
its/PRP$
10.4/CD
%/NN
stake/NN
,/,
Ford/NNP
can/MD
convene/VB
a/DT
special/JJ
Jaguar/NNP
shareholders/NNS
'/POS
meeting/NN
and/CC
urge/VB
them/PRP
to/TO
drop/VB
the/DT
restrictions/NNS
prematurely/RB
./.
``/``
It/PRP
's/VBZ
a/DT
very/RB
valuable/JJ
weapon/NN
in/IN
their/PRP$
armory/NN
,/,
''/''
which/WDT
could/MD
enable/VB
Ford/NNP
to/TO
bid/VB
sooner/RBR
for/IN
Jaguar/NNP
,/,
observed/VBD
Mr./NNP
Barber/NNP
of/IN
James/NNP
Capel/NNP
./.
Otherwise/RB
,/,
Jaguar/NNP
may/MD
have/VB
to/TO
tolerate/VB
the/DT
two/CD
U.S./NNP
auto/NN
giants/NNS
each/DT
owning/NN
a/DT
15/CD
%/NN
stake/NN
for/IN
more/JJR
than/IN
a/DT
year/NN
./.
``/``
It/PRP
would/MD
be/VB
difficult/JJ
to/TO
see/VB
how/WRB
a/DT
car/NN
company/NN
can/MD
be/VB
owned/VBN
by/IN
a/DT
collective/JJ
,/,
''/''
Sir/NNP
John/NNP
said/VBD
./.
``/``
It/PRP
has/VBZ
never/RB
been/VBN
done/VBN
before/RB
,/,
but/CC
there/EX
's/VBZ
always/RB
a/DT
first/JJ
./.
''/''
Although/IN
two/CD
Baby/NNP
Bells/NNPS
showed/VBD
strong/JJ
growth/NN
in/IN
access/NN
lines/NNS
,/,
usage/NN
and/CC
unregulated/JJ
business/NN
revenue/NN
,/,
one/CD
reported/VBD
a/DT
modest/JJ
gain/NN
in/IN
third-quarter/JJ
net/NN
while/IN
the/DT
other/JJ
posted/VBD
a/DT
small/JJ
drop/NN
./.
Ameritech/NNP
Corp./NNP
's/POS
earnings/NNS
increased/VBD
2.8/CD
%/NN
,/,
after/IN
strong/JJ
revenue/NN
gains/NNS
were/VBD
offset/VBN
somewhat/RB
by/IN
refunds/NNS
and/CC
rate/NN
reductions/NNS
imposed/VBN
by/IN
regulators/NNS
in/IN
its/PRP$
Midwest/NNP
territory/NN
./.
BellSouth/NNP
Corp./NNP
's/POS
third-quarter/JJ
earnings/NNS
dropped/VBD
3.8/CD
%/NN
as/IN
a/DT
result/NN
of/IN
debt/NN
refinancing/NN
,/,
the/DT
recent/JJ
acquisition/NN
of/IN
a/DT
cellular/JJ
and/CC
paging/NN
property/NN
and/CC
rate/NN
reductions/NNS
in/IN
its/PRP$
Southeast/NNP
territory/NN
./.
BellSouth/NNP
At/IN
BellSouth/NNP
,/,
based/VBN
in/IN
Atlanta/NNP
,/,
customer/NN
access/NN
lines/NNS
grew/VBN
by/IN
162,000/CD
,/,
or/CC
3.5/CD
%/NN
,/,
during/IN
the/DT
12-month/JJ
period/NN
ended/VBN
Sept/NNP
./.
For/IN
the/DT
third/JJ
quarter/NN
,/,
total/NN
operating/NN
revenue/NN
grew/VBD
2.6/CD
%/NN
to/TO
$/$
3.55/CD
billion/CD
from/IN
$/$
3.46/CD
billion/CD
./.
Total/JJ
operating/NN
expenses/NNS
increased/VBD
3.5/CD
%/NN
to/TO
$/$
2.78/CD
billion/CD
from/IN
$/$
2.69/CD
billion/CD
./.
Overall/JJ
access/NN
minutes/NNS
of/IN
use/NN
increased/VBD
10.3/CD
%/NN
and/CC
toll/NN
messages/NNS
jumped/VBD
5.2/CD
%/NN
./.
BellSouth/NNP
Chairman/NNP
and/CC
Chief/NNP
Executive/NNP
Officer/NNP
John/NNP
L./NNP
Clendenin/NNP
said/VBD
three/CD
factors/NNS
accounted/VBD
for/IN
the/DT
drop/NN
in/IN
third-quarter/JJ
earnings/NNS
./.
The/DT
refinancing/NN
of/IN
$/$
481/CD
million/CD
in/IN
long-term/JJ
debt/NN
reduced/VBD
net/JJ
income/NN
by/IN
$/$
22/CD
million/CD
,/,
or/CC
five/CD
cents/NNS
a/DT
share/NN
,/,
but/CC
in/IN
the/DT
long/JJ
run/NN
will/MD
save/VB
more/JJR
than/IN
$/$
250/CD
million/CD
in/IN
interest/NN
costs/NNS
./.
The/DT
company/NN
previously/RB
said/VBD
that/IN
the/DT
recent/JJ
acquisition/NN
of/IN
Mobile/NNP
Communications/NNPS
Corp./NNP
of/IN
America/NNP
would/MD
dilute/VB
1989/CD
earnings/NNS
by/IN
about/IN
3/CD
%/NN
./.
In/IN
addition/NN
,/,
earnings/NNS
were/VBD
reduced/VBN
by/IN
rate/NN
reductions/NNS
in/IN
Florida/NNP
,/,
Kentucky/NNP
,/,
Alabama/NNP
,/,
Tennessee/NNP
and/CC
Louisiana/NNP
./.
Ameritech/NNP
At/IN
Ameritech/NNP
,/,
based/VBN
in/IN
Chicago/NNP
,/,
customer/NN
access/NN
lines/NNS
increased/VBN
by/IN
402,000/CD
,/,
or/CC
2.6/CD
%/NN
,/,
and/CC
cellular/JJ
mobile/JJ
lines/NNS
increased/VBN
by/IN
80,000/CD
,/,
or/CC
62.3/CD
%/NN
,/,
for/IN
the/DT
12-month/JJ
period/NN
ended/VBN
Sept./NNP
30/CD
./.
For/IN
the/DT
third/JJ
quarter/NN
,/,
revenue/NN
increased/VBN
1.9/CD
%/NN
to/TO
$/$
2.55/CD
billion/CD
from/IN
$/$
2.51/CD
billion/CD
./.
Operating/NN
expenses/NNS
increased/VBD
2.6/CD
%/NN
to/TO
$/$
2.04/CD
billion/CD
,/,
including/VBG
one-time/JJ
pretax/JJ
charges/NNS
of/IN
$/$
40/CD
million/CD
for/IN
labor/NN
contract/NN
signing/NN
bonuses/NNS
./.
Local/JJ
service/NN
revenue/NN
increased/VBN
3.5/CD
%/NN
and/CC
directory/NN
and/CC
unregulated/JJ
business/NN
revenue/NN
jumped/VBD
9.5/CD
%/NN
./.
But/CC
network/NN
access/NN
revenue/NN
dropped/VBD
4/CD
%/NN
and/CC
toll/NN
revenue/NN
dropped/VBD
1.4/CD
%/NN
./.
a/SYM
-/:
reflects/VBZ
2-for-1/JJ
stock/NN
split/NN
effective/JJ
Dec./NNP
30/CD
,/,
1988/CD
./.
b/SYM
-/:
reflects/VBZ
extraordinary/JJ
loss/NN
of/IN
five/CD
cents/NNS
a/DT
share/NN
for/IN
early/JJ
debt/NN
retirement/NN
./.
c/SYM
-/:
reflects/VBZ
extraordinary/JJ
loss/NN
of/IN
five/CD
cents/NNS
a/DT
share/NN
and/CC
extraordinary/JJ
gain/NN
of/IN
14/CD
cents/NNS
a/DT
share/NN
from/IN
cumulative/JJ
effect/NN
of/IN
accounting/NN
change/NN
./.
The/DT
Wall/NNP
Street/NNP
Journal/NNP
``/``
American/JJ
Way/NN
of/IN
Buying/NN
''/''
Survey/NN
consists/VBZ
of/IN
two/CD
separate/JJ
,/,
door-to-door/JJ
nationwide/JJ
polls/NNS
conducted/VBN
for/IN
the/DT
Journal/NNP
by/IN
Peter/NNP
D./NNP
Hart/NNP
Research/NNP
Associates/NNPS
and/CC
the/DT
Roper/NNP
Organization/NNP
./.
The/DT
two/CD
surveys/NNS
,/,
which/WDT
asked/VBD
different/JJ
questions/NNS
,/,
were/VBD
conducted/VBN
using/VBG
national/JJ
random/JJ
probability/NN
samples/NNS
./.
The/DT
poll/NN
conducted/VBN
by/IN
Peter/NNP
D./NNP
Hart/NNP
Research/NNP
Associates/NNPS
interviewed/VBD
2,064/CD
adults/NNS
age/NN
18/CD
and/CC
older/JJR
from/IN
June/NNP
15/CD
to/TO
June/NNP
30/CD
,/,
1989/CD
./.
The/DT
poll/NN
conducted/VBN
by/IN
the/DT
Roper/NNP
Organization/NNP
interviewed/VBD
2,002/CD
adults/NNS
age/NN
18/CD
and/CC
older/JJR
from/IN
July/NNP
7/CD
to/TO
July/NNP
15/CD
,/,
1989/CD
./.
Responses/NNS
were/VBD
weighted/VBN
on/IN
the/DT
basis/NN
of/IN
age/NN
and/CC
gender/NN
to/TO
conform/VB
with/IN
U.S./NNP
Census/NNP
data/NNS
./.
For/IN
each/DT
poll/NN
,/,
the/DT
odds/NNS
are/VBP
19/CD
out/IN
of/IN
20/CD
that/DT
if/IN
pollsters/NNS
had/VBD
sought/VBN
to/TO
survey/VB
every/DT
household/NN
in/IN
the/DT
U.S./NNP
using/VBG
the/DT
same/JJ
questionnaire/NN
,/,
the/DT
findings/NNS
would/MD
differ/VB
from/IN
these/DT
poll/JJ
results/NNS
by/IN
no/DT
more/JJR
than/IN
2/CD
1\/2/CD
percentage/NN
points/NNS
in/IN
either/DT
direction/NN
./.
The/DT
margin/NN
of/IN
error/NN
for/IN
subgroups/NNS
--/:
for/IN
example/NN
,/,
married/JJ
women/NNS
with/IN
children/NNS
at/IN
home/NN
--/:
would/MD
be/VB
larger/JJR
./.
In/IN
addition/NN
,/,
in/IN
any/DT
survey/NN
,/,
there/EX
is/VBZ
always/RB
the/DT
chance/NN
that/IN
other/JJ
factors/NNS
such/JJ
as/IN
question/NN
wording/NN
could/MD
introduce/VB
errors/NNS
into/IN
the/DT
findings/NNS
./.
story/NN
:/:
``/``
The/DT
American/JJ
Way/NN
of/IN
Buying/NN
:/:
Brand/NN
Loyalty/NN
Is/VBZ
Rarely/RB
Blind/JJ
Loyalty/NN
--/:
Rise/NN
in/IN
Coupons/NNS
,/,
Choices/NNS
Blamed/VBN
For/IN
'80s/NNS
Erosion/NN
''/''
--/:
WSJ/NNP
Oct./NNP
19/CD
,/,
1989/CD
)/)
Program/NN
traders/NNS
were/VBD
buying/VBG
and/CC
selling/VBG
at/IN
full/JJ
steam/NN
Monday/NNP
,/,
the/DT
first/JJ
trading/NN
session/NN
after/IN
the/DT
stock/NN
market/NN
's/POS
190.58-point/JJ
plunge/NN
Friday/NNP
./.
They/PRP
accounted/VBD
for/IN
a/DT
hefty/JJ
16/CD
%/NN
of/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
volume/NN
Monday/NNP
,/,
the/DT
fourth/RB
busiest/JJS
session/NN
ever/RB
./.
On/IN
Friday/NNP
,/,
13/CD
%/NN
of/IN
volume/NN
was/VBD
in/IN
computer-guided/JJ
program/NN
trades/NNS
./.
In/IN
August/NNP
,/,
by/IN
contrast/NN
,/,
program/NN
trading/NN
averaged/VBD
10.3/CD
%/NN
of/IN
daily/JJ
Big/NNP
Board/NNP
turnover/NN
./.
Program/NN
traders/NNS
were/VBD
publicly/RB
castigated/VBN
following/VBG
the/DT
508-point/JJ
crash/NN
Oct./NNP
19/CD
,/,
1987/CD
,/,
and/CC
a/DT
number/NN
of/IN
brokerage/NN
firms/NNS
pulled/VBD
back/RB
from/IN
using/VBG
this/DT
strategy/NN
for/IN
a/DT
while/NN
./.
But/CC
as/IN
the/DT
outcry/NN
faded/VBN
by/IN
the/DT
spring/NN
of/IN
1988/CD
,/,
they/PRP
resumed/VBD
./.
Some/DT
observers/NNS
thought/VBD
that/IN
after/IN
Friday/NNP
's/POS
sharp/JJ
drop/NN
,/,
the/DT
firms/NNS
would/MD
rein/VB
in/IN
their/PRP$
program/NN
traders/NNS
to/TO
avoid/VB
stoking/VBG
more/JJR
controversy/NN
./.
But/CC
the/DT
statistics/NNS
released/VBN
yesterday/NN
show/VB
the/DT
firms/NNS
did/VBD
nothing/NN
of/IN
the/DT
sort/NN
./.
One/CD
reason/NN
,/,
they/PRP
said/VBD
,/,
was/VBD
that/IN
the/DT
official/JJ
reports/NNS
on/IN
the/DT
1987/CD
crash/NN
exonerated/VBD
program/NN
trading/NN
as/IN
a/DT
cause/NN
./.
Stock-index/NN
arbitrage/NN
is/VBZ
the/DT
most/RBS
controversial/JJ
form/NN
of/IN
program/NN
trading/NN
because/IN
it/PRP
accelerates/VBZ
market/NN
moves/NNS
,/,
if/IN
not/RB
actually/RB
causing/VBG
them/PRP
./.
In/IN
it/PRP
,/,
traders/NNS
buy/VBP
or/CC
sell/VBP
stocks/NNS
and/CC
offset/VBP
those/DT
positions/NNS
in/IN
stock-index/NN
futures/NNS
contracts/NNS
to/TO
profit/VB
from/IN
fleeting/JJ
price/NN
discrepancies/NNS
./.
Under/IN
the/DT
exchange/NN
's/POS
definitions/NNS
,/,
program/NN
trading/NN
also/RB
describes/VBZ
a/DT
number/NN
of/IN
other/JJ
strategies/NNS
that/IN
,/,
in/IN
the/DT
opinion/NN
of/IN
some/DT
traders/NNS
,/,
do/VBP
n't/RB
cause/VB
big/JJ
swings/NNS
in/IN
the/DT
market/NN
./.
The/DT
Big/NNP
Board/NNP
's/POS
disclosure/NN
of/IN
program/NN
trading/NN
activity/NN
on/IN
these/DT
two/CD
days/NNS
was/VBD
unusual/JJ
./.
Though/IN
it/PRP
collects/VBZ
such/JJ
data/NNS
daily/JJ
,/,
its/PRP$
monthly/JJ
reports/NNS
on/IN
program/NN
trading/NN
usually/RB
come/VBN
out/RB
about/IN
three/CD
weeks/NNS
after/IN
each/DT
month/NN
ends/VBZ
./.
The/DT
September/NNP
figures/NNS
are/VBP
due/JJ
to/TO
be/VB
released/VBN
this/DT
week/NN
./.
The/DT
Big/NNP
Board/NNP
declined/VBD
to/TO
name/VB
the/DT
Wall/NNP
Street/NNP
firms/NNS
involved/VBN
in/IN
the/DT
activity/NN
Friday/NNP
and/CC
Monday/NNP
,/,
or/CC
the/DT
type/NN
of/IN
strategies/NNS
used/VBN
./.
But/CC
traders/NNS
on/IN
the/DT
exchange/NN
floor/NN
,/,
who/WP
can/MD
observe/VB
the/DT
computer-guided/JJ
trading/NN
activity/NN
on/IN
monitor/NN
screens/NNS
,/,
said/VBD
most/JJS
of/IN
the/DT
top/JJ
program-trading/NN
firms/NNS
were/VBD
active/JJ
both/DT
days/NNS
./.
Through/IN
August/NNP
,/,
the/DT
top/JJ
five/CD
program/NN
trading/NN
firms/NNS
in/IN
volume/NN
were/VBD
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
,/,
Kidder/NNP
,/,
Peabody/NNP
&/CC
Co./NNP
,/,
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
,/,
PaineWebber/NNP
Group/NNP
Inc./NNP
and/CC
Salomon/NNP
Brothers/NNPS
Inc/NNP
./.
Though/IN
brokerage/NN
officials/NNS
defended/VBD
their/PRP$
use/NN
of/IN
program/NN
trading/NN
,/,
one/CD
sign/NN
of/IN
what/WP
an/DT
issue/NN
it/PRP
remains/VBZ
was/VBD
that/IN
few/JJ
executives/NNS
would/MD
comment/VB
on/IN
the/DT
record/NN
./.
Besides/IN
reciting/VBG
the/DT
pardon/NN
for/IN
program/NN
trading/NN
contained/VBN
in/IN
the/DT
Brady/NNP
Commission/NNP
report/NN
,/,
they/PRP
said/VBD
stock-index/NN
arbitrage/NN
was/VBD
actually/RB
needed/VBN
Monday/NNP
to/TO
restore/VB
the/DT
markets/NNS
'/POS
equilibrium/NN
./.
On/IN
Friday/NNP
,/,
the/DT
stock-index/NN
futures/NNS
market/NN
was/VBD
unhinged/VBN
from/IN
the/DT
stock/NN
market/NN
when/WRB
the/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
halted/VBD
trading/NN
in/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
500/CD
futures/NNS
contract/NN
--/:
a/DT
``/``
circuit/NN
breaker/NN
''/''
procedure/NN
instituted/VBN
after/IN
the/DT
1987/CD
crash/NN
and/CC
implemented/VBD
for/IN
the/DT
first/JJ
time/NN
./.
Futures/NNS
trading/NN
resumed/VBN
a/DT
half-hour/NN
later/RB
,/,
but/CC
the/DT
session/NN
ended/VBN
shortly/RB
thereafter/RB
,/,
leaving/VBG
the/DT
stock/NN
market/NN
set/VBN
up/RB
for/IN
more/JJR
sell/NN
programs/NNS
,/,
traders/NNS
said/VBD
./.
By/IN
Monday/NNP
morning/NN
,/,
they/PRP
said/VBD
,/,
stock-index/NN
arbitrage/NN
sell/VB
programs/NNS
helped/VBP
re-establish/VB
the/DT
link/NN
between/IN
stocks/NNS
and/CC
futures/NNS
./.
But/CC
stunning/JJ
volatility/NN
was/VBD
produced/VBN
in/IN
the/DT
process/NN
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
plunged/VBD
a/DT
breathtaking/JJ
63.52/CD
points/NNS
in/IN
the/DT
first/JJ
40/CD
minutes/NNS
of/IN
trading/NN
Monday/NNP
as/IN
stock-index/NN
arbitrage/NN
sell/NN
programs/NNS
kicked/VBD
in/RB
./.
At/IN
about/IN
10:10/CD
a.m./RB
EDT/NNP
,/,
the/DT
market/NN
abruptly/RB
turned/VBD
upward/RB
on/IN
stock-index/NN
arbitrage/NN
buy/JJ
programs/NNS
./.
By/IN
day/NN
's/POS
end/NN
,/,
the/DT
Dow/NNP
industrials/NNS
had/VBD
rebounded/VBN
88.12/CD
points/NNS
,/,
or/CC
nearly/RB
half/NN
of/IN
Friday/NNP
's/POS
drop/NN
./.
FREDERICK/NNP
'S/POS
OF/IN
HOLLYWOOD/NNP
Inc./NNP
,/,
Los/NNP
Angeles/NNP
,/,
said/VBD
its/PRP$
board/NN
voted/VBD
a/DT
50/CD
%/NN
increase/NN
in/IN
the/DT
specialty/NN
boutique-store/NN
operator/NN
's/POS
semiannual/JJ
dividend/NN
,/,
to/TO
five/CD
cents/NNS
a/DT
common/JJ
share/NN
./.
The/DT
dividend/NN
is/VBZ
payable/JJ
Dec./NNP
15/CD
to/TO
stock/NN
of/IN
record/NN
Nov./NNP
15/CD
./.
Valley/NNP
National/NNP
Corp./NNP
reported/VBD
a/DT
third-quarter/JJ
net/JJ
loss/NN
of/IN
$/$
72.2/CD
million/CD
,/,
or/CC
$/$
3.65/CD
a/DT
share/NN
,/,
and/CC
suspended/VBD
its/PRP$
quarterly/JJ
dividend/NN
because/IN
of/IN
potential/JJ
losses/NNS
on/IN
its/PRP$
Arizona/NNP
real/JJ
estate/NN
holdings/NNS
./.
The/DT
Phoenix-based/JJ
holding/VBG
company/NN
for/IN
Arizona/NNP
's/POS
largest/JJS
bank/NN
said/VBD
it/PRP
added/VBD
$/$
121/CD
million/CD
to/TO
its/PRP$
allowance/NN
for/IN
losses/NNS
on/IN
loans/NNS
and/CC
for/IN
real/JJ
estate/NN
owned/VBN
./.
The/DT
company/NN
earned/VBN
$/$
18.7/CD
million/CD
,/,
or/CC
95/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Valley/NNP
National/NNP
posted/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
136.4/CD
million/CD
,/,
or/CC
$/$
6.90/CD
a/DT
share/NN
./.
It/PRP
had/VBD
profit/NN
of/IN
$/$
48.6/CD
million/CD
,/,
or/CC
$/$
2.46/CD
a/DT
share/NN
,/,
in/IN
the/DT
1988/CD
period/NN
./.
Valley/NNP
National/NNP
had/VBD
been/VBN
paying/VBG
a/DT
quarterly/JJ
dividend/NN
of/IN
36/CD
cents/NNS
a/DT
share/NN
./.
``/``
The/DT
Arizona/NNP
real/JJ
estate/NN
market/NN
continues/VBZ
to/TO
be/VB
depressed/VBN
,/,
and/CC
there/EX
is/VBZ
still/RB
uncertainty/NN
as/IN
to/TO
when/WRB
values/NNS
will/MD
recover/VB
,/,
''/''
James/NNP
P./NNP
Simmons/NNP
,/,
chairman/NN
,/,
said/VBD
./.
The/DT
decision/NN
to/TO
increase/VB
the/DT
loan-loss/NN
reserve/NN
and/CC
suspend/VB
the/DT
dividend/NN
is/VBZ
``/``
both/DT
prudent/JJ
and/CC
in/IN
the/DT
best/JJS
long-term/JJ
interest/NN
of/IN
the/DT
shareholders/NNS
,/,
''/''
he/PRP
said/VBD
./.
Valley/NNP
National/NNP
said/VBD
it/PRP
made/VBD
the/DT
decision/NN
on/IN
the/DT
basis/NN
of/IN
an/DT
``/``
overall/JJ
assessment/NN
of/IN
the/DT
marketplace/NN
''/''
and/CC
the/DT
condition/NN
of/IN
its/PRP$
loan/NN
portfolio/NN
and/CC
after/IN
reviewing/VBG
it/PRP
with/IN
federal/JJ
regulators/NNS
./.
The/DT
addition/NN
to/TO
reserves/NNS
comes/VBZ
on/IN
top/NN
of/IN
a/DT
provision/NN
of/IN
$/$
199.7/CD
million/CD
that/DT
was/VBD
announced/VBN
in/IN
June/NNP
./.
In/IN
July/NNP
,/,
Moody/NNP
's/POS
downgraded/VBD
$/$
400/CD
million/CD
of/IN
the/DT
company/NN
's/POS
debt/NN
,/,
saying/VBG
the/DT
bank/NN
holding/VBG
company/NN
had/VBD
n't/RB
taken/VBN
adequate/JJ
write-offs/NNS
against/IN
potential/JJ
losses/NNS
on/IN
real/JJ
estate/NN
loans/NNS
despite/IN
its/PRP$
second-quarter/JJ
write-down/NN
./.
Richard/NNP
M./NNP
Greenwood/NNP
,/,
Valley/NNP
National/NNP
's/POS
executive/NN
vice/NN
president/NN
,/,
said/VBD
then/RB
that/IN
the/DT
company/NN
believed/VBD
the/DT
write-downs/NNS
were/VBD
``/``
adequate/JJ
''/''
and/CC
did/VBD
n't/RB
plan/NN
to/TO
increase/VB
its/PRP$
reserves/NNS
again/RB
./.
Bruce/NNP
Hoyt/NNP
,/,
a/DT
banking/NN
analyst/NN
with/IN
Boettcher/NNP
&/CC
Co./NNP
,/,
a/DT
Denver/NNP
brokerage/NN
firm/NN
,/,
said/VBD
Valley/NNP
National/NNP
``/``
is/VBZ
n't/RB
out/IN
of/IN
the/DT
woods/NNS
yet/RB
./.
''/''
The/DT
key/NN
will/MD
be/VB
whether/IN
Arizona/NNP
real/JJ
estate/NN
turns/VBZ
around/RB
or/CC
at/IN
least/JJS
stabilizes/VBZ
,/,
he/PRP
said/VBD
./.
``/``
They/PRP
've/VBP
stepped/VBD
up/RB
to/TO
the/DT
plate/NN
to/TO
take/VB
the/DT
write-downs/NNS
,/,
but/CC
when/WRB
markets/NNS
head/VBP
down/RB
,/,
a/DT
company/NN
is/VBZ
always/RB
exposed/VBN
to/TO
further/VB
negative/JJ
surprises/NNS
,/,
''/''
Mr./NNP
Hoyt/NNP
said/VBD
./.
Valley/NNP
National/NNP
closed/VBD
yesterday/NN
at/IN
$/$
24.25/CD
a/DT
share/NN
,/,
down/RB
$/$
1/CD
,/,
in/IN
national/JJ
over-the-counter/JJ
trading/NN
./.
Two/CD
years/NNS
of/IN
coddling/NN
,/,
down/IN
the/DT
drain/NN
./.
That/DT
's/VBZ
the/DT
way/NN
a/DT
lot/NN
of/IN
brokers/NNS
feel/VBP
today/NN
on/IN
the/DT
second/JJ
anniversary/NN
of/IN
the/DT
1987/CD
stock-market/NN
crash/NN
./.
Ever/RB
since/IN
that/DT
fearful/JJ
Black/NNP
Monday/NNP
,/,
they/PRP
've/VBP
been/VBN
tirelessly/RB
wooing/VBG
wary/JJ
individual/JJ
investors/NNS
--/:
trying/VBG
to/TO
convince/VB
them/PRP
that/IN
Oct./NNP
19/CD
,/,
1987/CD
,/,
was/VBD
a/DT
fluke/NN
and/CC
that/IN
the/DT
stock/NN
market/NN
really/RB
is/VBZ
a/DT
safe/JJ
place/NN
for/IN
average/JJ
Americans/NNPS
to/TO
put/VB
their/PRP$
hard-earned/JJ
dollars/NNS
./.
And/CC
until/IN
last/JJ
Friday/NNP
,/,
it/PRP
seemed/VBD
those/DT
efforts/NNS
were/VBD
starting/VBG
to/TO
pay/VB
off/RB
./.
``/``
Some/DT
of/IN
those/DT
folks/NNS
were/VBD
coming/VBG
back/RB
,/,
''/''
says/VBZ
Leslie/NNP
Quick/NNP
Jr./NNP
,/,
chairman/NN
,/,
of/IN
discount/NN
brokers/NNS
Quick/NNP
&/CC
Reilly/NNP
Group/NNP
Inc/NNP
./.
``/``
We/PRP
had/VBD
heard/VBN
from/IN
people/NNS
who/WP
had/VBD
n't/RB
been/VBN
active/JJ
''/''
for/IN
a/DT
long/JJ
time/NN
./.
Then/RB
came/VBD
the/DT
frightening/JJ
190-point/JJ
plunge/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
and/CC
a/DT
new/JJ
wave/NN
of/IN
stock-market/NN
volatility/NN
./.
All/DT
of/IN
a/DT
sudden/JJ
,/,
it/PRP
was/VBD
back/RB
to/TO
square/NN
one/CD
./.
``/``
It/PRP
's/VBZ
going/VBG
to/TO
set/VB
things/NNS
back/RB
for/IN
a/DT
period/NN
,/,
because/IN
it/PRP
reinforces/VBZ
the/DT
concern/NN
of/IN
volatility/NN
,/,
''/''
says/VBZ
Jeffrey/NNP
B./NNP
Lane/NNP
,/,
president/NN
of/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc/NNP
./.
``/``
I/PRP
think/VBP
it/PRP
will/MD
shake/VB
confidence/NN
one/CD
more/JJR
time/NN
,/,
and/CC
a/DT
lot/NN
of/IN
this/DT
business/NN
is/VBZ
based/VBN
on/IN
client/NN
confidence/NN
./.
''/''
Brokers/NNS
around/IN
the/DT
country/NN
say/VBP
the/DT
reaction/NN
from/IN
individual/JJ
investors/NNS
this/DT
week/NN
has/VBZ
been/VBN
almost/RB
eerie/JJ
./.
Customers/NNS
and/CC
potential/JJ
customers/NNS
are/VBP
suddenly/RB
complaining/VBG
about/IN
the/DT
stock/NN
market/NN
in/IN
the/DT
exact/JJ
way/NN
they/PRP
did/VBD
in/IN
post-crash/JJ
1987/CD
./.
``/``
The/DT
kinds/NNS
of/IN
questions/NNS
you/PRP
had/VBD
before/IN
have/VBP
resurfaced/VBN
,/,
''/''
says/VBZ
Raymond/NNP
A./NN
``/``
Chip/NN
''/''
Mason/NNP
,/,
chairman/NN
of/IN
regional/JJ
brokerage/NN
firm/NN
Legg/NNP
Mason/NNP
Inc./NNP
,/,
Baltimore/NNP
./.
``/``
I/PRP
can/MD
just/RB
tell/VB
the/DT
questions/NNS
are/VBP
right/RB
back/RB
where/WRB
they/PRP
were/VBD
:/:
`/``
What/WP
's/VBZ
going/VBG
on/RB
?/.
,/,
'/''
`/``
Ca/MD
n't/RB
anything/NN
be/VB
done/VBN
about/IN
program/NN
trading/NN
?/.
,/,
'/''
`/``
Does/VBZ
n't/RB
the/DT
exchange/NN
understand/VB
?/.
,/,
'/''
`/``
Where/WRB
is/VBZ
the/DT
SEC/NNP
on/IN
this/DT
?/.
'/''
''/''
Mr./NNP
Mason/NNP
says/VBZ
he/PRP
's/VBZ
convinced/VBN
the/DT
public/NN
still/RB
wants/VBZ
to/TO
invest/VB
in/IN
common/JJ
stocks/NNS
,/,
even/RB
though/IN
they/PRP
believe/VBP
the/DT
deck/NN
is/VBZ
stacked/VBN
against/IN
them/PRP
./.
But/CC
``/``
these/DT
wide/JJ
swings/NNS
scare/VBP
them/PRP
to/TO
death/NN
./.
''/''
All/DT
of/IN
this/DT
is/VBZ
bad/JJ
news/NN
for/IN
the/DT
big/JJ
brokerage/NN
firms/NNS
such/JJ
as/IN
Shearson/NNP
and/CC
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
that/WDT
have/VBP
big/JJ
``/``
retail/JJ
,/,
''/''
or/CC
individual-investor/JJ
,/,
businesses/NNS
./.
After/IN
expanding/VBG
rapidly/RB
during/IN
the/DT
bull-market/NN
years/NNS
up/IN
to/TO
the/DT
1987/CD
crash/NN
,/,
retail/JJ
brokerage/NN
operations/NNS
these/DT
days/NNS
are/VBP
getting/VBG
barely/RB
enough/JJ
business/NN
to/TO
pay/VB
the/DT
overhead/NN
./.
True/JJ
,/,
the/DT
amount/NN
of/IN
money/NN
investors/NNS
are/VBP
willing/JJ
to/TO
entrust/VB
to/TO
their/PRP$
brokers/NNS
has/VBZ
been/VBN
growing/VBG
lately/RB
./.
But/CC
those/DT
dollars/NNS
have/VBP
been/VBN
going/VBG
into/IN
such/JJ
``/``
safe/JJ
''/''
products/NNS
as/IN
money/NN
market/NN
funds/NNS
,/,
which/WDT
do/VBP
n't/RB
generate/VB
much/RB
in/IN
the/DT
way/NN
of/IN
commissions/NNS
for/IN
the/DT
brokerage/NN
firms/NNS
./.
At/IN
discount/NN
brokerage/NN
Charles/NNP
Schwab/NNP
&/CC
Co./NNP
,/,
such/JJ
``/``
cash-equivalent/JJ
''/''
investments/NNS
recently/RB
accounted/VBD
for/IN
a/DT
record/NN
$/$
8/CD
billion/CD
of/IN
the/DT
firm/NN
's/POS
$/$
25/CD
billion/CD
of/IN
client/NN
's/POS
assets/NNS
./.
The/DT
brokers/NNS
'/POS
hope/NN
has/VBZ
been/VBN
that/IN
they/PRP
could/MD
soon/RB
coax/VB
investors/NNS
into/IN
shifting/VBG
some/DT
of/IN
their/PRP$
hoard/NN
into/IN
the/DT
stock/NN
market/NN
./.
And/CC
before/IN
last/JJ
Friday/NNP
,/,
they/PRP
were/VBD
actually/RB
making/VBG
modest/JJ
progress/NN
./.
A/DT
slightly/RB
higher/JJR
percentage/NN
of/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
volume/NN
has/VBZ
been/VBN
attributed/VBN
to/TO
retail/JJ
investors/NNS
in/IN
recent/JJ
months/NNS
compared/VBN
with/IN
post-crash/JJ
1988/CD
,/,
according/VBG
to/TO
Securities/NNPS
Industry/NNP
Association/NNP
data/NN|NNS
./.
In/IN
1987/CD
,/,
an/DT
average/JJ
19.7/CD
%/NN
of/IN
Big/NNP
Board/NNP
volume/NN
was/VBD
retail/JJ
business/NN
,/,
with/IN
the/DT
monthly/JJ
level/NN
never/RB
more/JJR
than/IN
21.4/CD
%/NN
./.
The/DT
retail/JJ
participation/NN
dropped/VBD
to/TO
an/DT
average/JJ
18.2/CD
%/NN
in/IN
1988/CD
,/,
and/CC
shriveled/VBD
to/TO
barely/RB
14/CD
%/NN
some/DT
months/NNS
during/IN
the/DT
year/NN
./.
Yet/RB
in/IN
1989/CD
,/,
retail/JJ
participation/NN
has/VBZ
been/VBN
more/JJR
than/IN
20/CD
%/NN
in/IN
every/DT
month/NN
,/,
and/CC
was/VBD
23.5/CD
%/NN
in/IN
August/NNP
,/,
the/DT
latest/JJS
month/NN
for/IN
which/WDT
figures/NNS
are/VBP
available/JJ
./.
Jeffrey/NNP
Schaefer/NNP
,/,
the/DT
SIA/NNP
's/POS
research/NN
director/NN
,/,
says/VBZ
that/IN
all/DT
of/IN
his/PRP$
group/NN
's/POS
retail-volume/NN
statistics/NNS
could/MD
be/VB
overstated/VBN
by/IN
as/RB
much/JJ
as/IN
five/CD
percentage/NN
points/NNS
because/IN
corporate/JJ
buy-backs/NNS
are/VBP
sometimes/RB
inadvertently/RB
included/VBN
in/IN
Big/NNP
Board/NNP
data/NNS
./.
But/CC
there/RB
did/VBD
seem/VB
to/TO
be/VB
a/DT
retail/JJ
activity/NN
pickup/NN
./.
But/CC
``/``
Friday/NNP
did/VBD
n't/RB
help/NN
things/NNS
,/,
''/''
says/VBZ
Mr./NNP
Schaefer/NNP
./.
With/IN
the/DT
gyrations/NNS
of/IN
recent/JJ
days/NNS
,/,
says/VBZ
Hugo/NNP
Quackenbush/NNP
,/,
senior/JJ
vice/NN
president/NN
at/IN
Charles/NNP
Schwab/NNP
,/,
many/JJ
small/JJ
investors/NNS
are/VBP
absolutely/RB
convinced/JJ
that/IN
``/``
they/PRP
should/MD
n't/RB
play/VB
in/IN
the/DT
stock/NN
market/NN
./.
''/''
Joseph/NNP
Grano/NNP
,/,
president/NN
of/IN
retail/JJ
sales/NNS
and/CC
marketing/NN
at/IN
PaineWebber/NNP
Group/NNP
Inc./NNP
,/,
still/RB
thinks/VBZ
that/IN
individual/JJ
investors/NNS
will/MD
eventually/RB
go/VB
back/RB
into/IN
the/DT
stock/NN
market/NN
./.
Investors/NNS
will/MD
develop/VB
``/``
thicker/JJR
skins/NNS
,/,
''/''
and/CC
their/PRP$
confidence/NN
will/MD
return/VB
,/,
he/PRP
says/VBZ
./.
Friday/NNP
's/POS
plunge/NN
,/,
he/PRP
is/VBZ
telling/VBG
PaineWebber/NNP
brokers/NNS
,/,
was/VBD
nothing/NN
more/JJR
than/IN
a/DT
``/``
tremendous/JJ
reaction/NN
to/TO
leveraged/JJ
buy-out/NN
stocks/NNS
./.
''/''
Meanwhile/RB
,/,
PaineWebber/NNP
remains/VBZ
among/IN
the/DT
leaders/NNS
in/IN
efforts/NNS
to/TO
simply/RB
persuade/VB
investors/NNS
to/TO
keep/VB
giving/VBG
Wall/NNP
Street/NNP
their/PRP$
money/NN
./.
``/``
It/PRP
's/VBZ
more/JJR
of/IN
an/DT
important/JJ
issue/NN
to/TO
keep/VB
control/NN
of/IN
those/DT
assets/NNS
,/,
rather/RB
than/IN
push/VB
the/DT
investor/NN
to/TO
move/VB
into/IN
(/(
specific/JJ
products/NNS
such/JJ
as/IN
equities/NNS
,/,
''/''
Mr./NNP
Grano/NNP
says/VBZ
./.
``/``
The/DT
equity/NN
decision/NN
will/MD
come/VB
when/WRB
the/DT
client/NN
is/VBZ
ready/JJ
and/CC
when/WRB
there/EX
's/VBZ
a/DT
semblance/NN
of/IN
confidence/NN
./.
''/''
It/PRP
could/MD
be/VB
a/DT
long/JJ
wait/NN
,/,
say/VBP
some/DT
industry/NN
observers/NNS
./.
``/``
Some/DT
investors/NNS
will/MD
tiptoe/VB
back/RB
in/RB
,/,
''/''
says/VBZ
Richard/NNP
Ross/NNP
,/,
a/DT
market/NN
research/NN
director/NN
for/IN
Elrick/NNP
&/CC
Lavidge/NNP
in/IN
Chicago/NNP
./.
``/``
Then/RB
there/EX
'll/MD
be/VB
another/DT
swing/NN
./.
Given/VBN
enough/JJ
of/IN
these/DT
,/,
this/DT
will/MD
drive/VB
everyone/NN
out/RP
except/IN
the/DT
most/RBS
hardy/JJ
,/,
''/''
he/PRP
adds/VBZ
./.
Mr./NNP
Ross/NNP
,/,
who/WP
has/VBZ
been/VBN
studying/VBG
retail/JJ
investors/NNS
'/POS
perception/NN
of/IN
risks/NNS
in/IN
the/DT
brokerage/NN
industry/NN
,/,
said/VBD
a/DT
market/NN
plunge/NN
like/IN
Friday/NNP
's/POS
``/``
shatters/NNS
investors/NNS
'/POS
confidence/NN
in/IN
their/PRP$
ability/NN
to/TO
make/VB
any/DT
judgments/NNS
on/IN
the/DT
market/NN
./.
''/''
The/DT
long-term/JJ
outlook/NN
for/IN
the/DT
retail/JJ
brokerage/NN
business/NN
is/VBZ
``/``
miserable/JJ
,/,
''/''
Mr./NNP
Ross/NNP
declares/VBZ
./.
The/DT
following/JJ
were/VBD
among/IN
yesterday/NN
's/POS
offerings/NNS
and/CC
pricings/NNS
in/IN
the/DT
U.S./NNP
and/CC
non-U.S./JJ
capital/NN
markets/NNS
,/,
with/IN
terms/NNS
and/CC
syndicate/NN
manager/NN
,/,
as/IN
compiled/VBN
by/IN
Dow/NNP
Jones/NNP
Capital/NNP
Markets/NNPS
Report/NNP
:/:
Washington/NNP
,/,
D.C./NNP
--/:
$/$
200/CD
million/CD
of/IN
general/JJ
obligation/NN
tax/NN
revenue/NN
anticipation/NN
notes/NNS
,/,
Series/NN
1990/CD
,/,
due/JJ
Sept./NNP
28/CD
,/,
1990/CD
./.
About/IN
$/$
190/CD
million/CD
were/VBD
offered/VBN
through/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc/NNP
./.
Shearson/NNP
is/VBZ
offering/VBG
the/DT
notes/NNS
as/IN
6/CD
3\/4/CD
%/NN
securities/NNS
priced/VBN
to/TO
yield/VB
6.15/CD
%/NN
./.
J.P./NNP
Morgan/NNP
Securities/NNPS
Inc./NNP
is/VBZ
offering/VBG
the/DT
remaining/VBG
$/$
10/CD
million/CD
of/IN
notes/NNS
./.
The/DT
notes/NNS
are/VBP
rated/VBN
MIG-1/JJ
by/IN
Moody/NNP
's/POS
Investors/NNPS
Service/NNP
Inc/NNP
./.
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NN
has/VBZ
them/PRP
under/IN
review/NN
./.
Federal/NNP
National/NNP
Mortgage/NNP
Association/NNP
--/:
$/$
400/CD
million/CD
of/IN
Remic/NNP
mortgage/NN
securities/NNS
being/VBG
offered/VBN
in/IN
16/CD
classes/NNS
by/IN
Bear/NNP
,/,
Stearns/NNP
&/CC
Co/NNP
./.
The/DT
offering/NN
,/,
Series/NN
1989-83/CD
,/,
is/VBZ
backed/VBN
by/IN
Fannie/NNP
Mae/NNP
9/CD
%/NN
securities/NNS
./.
The/DT
offering/NN
used/VBD
at-market/JJ
pricing/NN
./.
Separately/RB
,/,
Fannie/NNP
Mae/NNP
issued/VBD
$/$
400/CD
million/CD
of/IN
Remic/NNP
mortgage/NN
securities/NNS
in/IN
12/CD
classes/NNS
through/IN
First/NNP
Boston/NNP
Corp/NNP
./.
The/DT
offering/NN
,/,
Series/NN
1989-84/CD
,/,
is/VBZ
backed/VBN
by/IN
Fannie/NNP
Mae/NNP
9/CD
%/NN
securities/NNS
./.
Pricing/NN
details/NNS
were/VBD
n't/RB
available/JJ
./.
The/DT
two/CD
offerings/NNS
bring/VBP
Fannie/NNP
Mae/NNP
's/POS
1989/CD
Remic/NNP
issuance/NN
to/TO
$/$
31/CD
billion/CD
and/CC
its/PRP$
total/JJ
volume/NN
to/TO
$/$
43.3/CD
billion/CD
since/IN
the/DT
program/NN
began/VBD
in/IN
April/NNP
1987/CD
./.
Societa/NNP
per/FW
Azioni/NNP
Finanziaria/NNP
Industria/NNP
Manaifatturiera/NNP
Italy/NNP
$/$
150/CD
million/CD
of/IN
9/CD
%/NN
depository/NN
receipts/NNS
due/JJ
Nov./NNP
27/CD
,/,
1994/CD
,/,
priced/VBN
at/IN
101.60/CD
to/TO
yield/VB
9.07/CD
%/NN
less/CC
fees/NNS
,/,
via/IN
Bankers/NNPS
Trust/NNP
International/NNP
Ltd/NNP
./.
Fees/NNS
1/CD
7\/8/CD
./.
Mitsubishi/NNP
Corp/NNP
./.
Finance/NNP
(/(
Japanese/JJ
parent/NN
$/$
100/CD
million/CD
of/IN
8/CD
5\/8/CD
%/NN
bonds/NNS
due/JJ
Nov./NNP
1/CD
,/,
1993/CD
priced/VBN
at/IN
101/CD
1\/4/CD
to/TO
yield/VB
8.74/CD
%/NN
annually/RB
less/CC
full/JJ
fees/NNS
,/,
via/IN
Yamaichi/NNP
International/NNP
Europe/NNP
Ltd/NNP
./.
Fees/NNS
1/CD
5\/8/CD
./.
Indian/NNP
Oil/NNP
Corp/NNP
./.
India/NNP
$/$
200/CD
million/CD
of/IN
floating-rate/JJ
notes/NNS
due/JJ
November/NNP
1994/CD
,/,
paying/VBG
six-month/JJ
London/NNP
interbank/NN
offered/VBN
rate/NN
plus/CC
3\/16/CD
point/NN
and/CC
priced/VBN
at/IN
par/JJ
via/IN
Credit/NNP
Suisse/NNP
First/JJ
Boston/NNP
Ltd/NNP
./.
Guaranteed/VBN
by/IN
India/NNP
./.
Fees/NNS
0.36/CD
./.
Notes/NNS
offered/VBN
at/IN
a/DT
fixed/JJ
level/NN
of/IN
99.75/CD
./.
National/NNP
Westminster/NNP
Bank/NNP
PLC/NNP
U.K./NNP
#/#
200/CD
million/CD
of/IN
undated/JJ
variable-rate/JJ
notes/NNS
priced/VBN
at/IN
par/JJ
via/IN
Merill/NNP
Lynch/NNP
International/NNP
Ltd/NNP
./.
Initial/JJ
interest/NN
rate/NN
set/VBN
at/IN
0.375/CD
point/NN
over/IN
three-month/JJ
Libor/NNP
./.
Subsequent/JJ
margins/NNS
set/VBN
by/IN
agreement/NN
between/IN
NatWest/NNP
and/CC
Merrill/NNP
./.
If/IN
no/DT
margin/NN
agreed/VBD
,/,
there/EX
is/VBZ
a/DT
fallback/JJ
rate/NN
of/IN
Libor/NNP
plus/CC
0.75/CD
point/NN
in/IN
years/NNS
one/CD
to/TO
15/CD
,/,
and/CC
Libor/NNP
plus/CC
1.25/CD
point/NN
thereafter/RB
./.
Keihin/NNP
Electric/NNP
Express/NNP
Railway/NNP
Co/NNP
./.
Japan/NNP
$/$
150/CD
million/CD
of/IN
bonds/NNS
due/JJ
Nov./NNP
9/CD
,/,
1993/CD
,/,
with/IN
equity-purchase/JJ
warrants/NNS
,/,
indicating/VBG
a/DT
4/CD
%/NN
coupon/NN
at/IN
par/JJ
via/IN
Yamaichi/NNP
International/NNP
Europe/NNP
Ltd/NNP
./.
Each/DT
$/$
5,000/CD
bond/NN
carries/VBZ
one/CD
warrant/NN
,/,
exercisable/JJ
from/IN
Dec./NNP
1/CD
,/,
1989/CD
,/,
through/IN
Nov./NNP
2/CD
,/,
1993/CD
,/,
to/TO
buy/VB
company/NN
shares/NNS
at/IN
an/DT
expected/JJ
premium/NN
of/IN
2/CD
1\/2/CD
%/NN
to/TO
the/DT
closing/NN
share/NN
price/NN
when/WRB
terms/NNS
are/VBP
fixed/VBN
Oct./NNP
24/CD
./.
Seiren/NNP
Co/NNP
./.
Japan/NNP
110/CD
million/CD
Swiss/JJ
francs/NNS
of/IN
privately/RB
placed/VBN
convertible/JJ
notes/NNS
due/JJ
March/NNP
31/CD
,/,
1994/CD
,/,
with/IN
an/DT
indicated/JJ
0.25/CD
%/NN
coupon/NN
at/IN
par/JJ
,/,
via/IN
Bank/NNP
Leu/NNP
Ltd/NNP
./.
Put/JJ
option/NN
on/IN
March/NNP
31/CD
,/,
1992/CD
,/,
at/IN
an/DT
indicated/JJ
109/CD
to/TO
yield/VB
3.865/CD
%/NN
./.
Callable/JJ
on/IN
March/NNP
31/CD
,/,
1992/CD
,/,
at/IN
109/CD
,/,
also/RB
beginning/VBG
Sept./NNP
30/CD
,/,
1992/CD
,/,
from/IN
101/CD
1\/2/CD
and/CC
declining/VBG
half/PDT
a/DT
point/NN
semiannually/RB
to/TO
par/JJ
./.
Each/DT
50,000/CD
Swiss/JJ
franc/NN
note/NN
is/VBZ
convertible/JJ
from/IN
Nov./NNP
20/CD
,/,
1989/CD
,/,
to/TO
March/NNP
17/CD
,/,
1994/CD
,/,
at/IN
an/DT
indicated/JJ
5/CD
%/NN
premium/NN
over/IN
the/DT
closing/NN
share/NN
price/NN
Oct./NNP
25/CD
,/,
when/WRB
terms/NNS
are/VBP
scheduled/VBN
to/TO
be/VB
fixed/VBN
./.
N./NNP
Nomura/NNP
&/CC
Co/NNP
./.
Japan/NNP
50/CD
million/CD
Swiss/JJ
francs/NNS
of/IN
privately/RB
placed/VBN
convertible/JJ
notes/NNS
due/JJ
March/NNP
31/CD
,/,
1994/CD
,/,
with/IN
an/DT
indicated/JJ
0.5/CD
%/NN
coupon/NN
at/IN
par/JJ
,/,
via/IN
Bank/NNP
Julius/NNP
Baer/NNP
./.
Put/JJ
option/NN
on/IN
March/NNP
31/CD
,/,
1992/CD
,/,
at/IN
an/DT
indicated/JJ
108/CD
1\/4/CD
to/TO
yield/VB
3.846/CD
%/NN
./.
Each/DT
50,000/CD
Swiss/JJ
franc/NN
note/NN
is/VBZ
convertible/JJ
from/IN
Nov./NNP
20/CD
,/,
1989/CD
,/,
to/TO
March/NNP
17/CD
,/,
1994/CD
,/,
at/IN
a/DT
5/CD
%/NN
premium/NN
over/IN
the/DT
closing/NN
share/NN
price/NN
Oct./NNP
21/CD
,/,
when/WRB
terms/NNS
are/VBP
scheduled/VBN
to/TO
be/VB
fixed/VBN
./.
Aegon/NNP
N.V/NNP
./.
Netherlands/NNP
250/CD
million/CD
Dutch/JJ
guilders/NNS
of/IN
7/CD
3\/4/CD
%/NN
bonds/NNS
due/JJ
Nov./NNP
15/CD
,/,
1999/CD
,/,
priced/VBN
at/IN
101/CD
1\/4/CD
to/TO
yield/VB
7.57/CD
%/NN
at/IN
issue/NN
price/NN
and/CC
7.86/CD
%/NN
less/CC
full/JJ
fees/NNS
,/,
via/IN
AMRO/NNP
Bank/NNP
./.
Fees/NNS
2/CD
./.
Continental/NNP
Airlines/NNPS
--/:
a/DT
four-part/JJ
,/,
$/$
71/CD
million/CD
issue/NN
of/IN
secured/JJ
equipment/NN
certificates/NNS
priced/VBN
through/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc/NNP
./.
The/DT
size/NN
of/IN
the/DT
issue/NN
was/VBD
decreased/VBN
from/IN
an/DT
originally/RB
planned/JJ
$/$
95.2/CD
million/CD
./.
In/IN
addition/NN
,/,
a/DT
planned/JJ
two-part/JJ
offering/NN
of/IN
$/$
58/CD
million/CD
in/IN
unsecured/JJ
notes/NNS
was/VBD
n't/RB
offered/VBN
./.
The/DT
first/JJ
part/NN
,/,
consisting/VBG
of/IN
$/$
2.5/CD
million/CD
of/IN
11/CD
1\/4/CD
%/NN
secured/JJ
equipment/NN
certificates/NNS
due/JJ
June/NNP
15/CD
,/,
1990/CD
,/,
was/VBD
priced/VBN
at/IN
98.481/CD
with/IN
a/DT
yield/NN
to/TO
maturity/NN
of/IN
13.75/CD
%/NN
./.
The/DT
second/JJ
part/NN
,/,
consisting/VBG
of/IN
$/$
28/CD
million/CD
of/IN
11/CD
3\/4/CD
%/NN
secured/JJ
equipment/NN
certificates/NNS
due/JJ
June/NNP
15/CD
,/,
1995/CD
,/,
was/VBD
priced/VBN
at/IN
87.026/CD
with/IN
a/DT
yield/NN
to/TO
maturity/NN
of/IN
15.25/CD
%/NN
./.
The/DT
third/JJ
part/NN
,/,
consisting/VBG
of/IN
$/$
18.5/CD
million/CD
of/IN
12/CD
1\/8/CD
%/NN
secured/JJ
equipment/NN
certificates/NNS
due/JJ
April/NNP
15/CD
,/,
1996/CD
,/,
was/VBD
priced/VBN
at/IN
85.60/CD
with/IN
a/DT
yield/NN
to/TO
maturity/NN
of/IN
15.75/CD
%/NN
./.
The/DT
fourth/JJ
part/NN
,/,
consisting/VBG
of/IN
$/$
22/CD
million/CD
of/IN
12/CD
1\/2/CD
%/NN
secured/JJ
equipment/NN
certificates/NNS
due/JJ
April/NNP
15/CD
,/,
1999/CD
,/,
was/VBD
priced/VBN
at/IN
85.339/CD
with/IN
a/DT
yield/NN
to/TO
maturity/NN
of/IN
15.50/CD
%/NN
./.
The/DT
issue/NN
was/VBD
rated/VBN
single-B-2/JJ
by/IN
Moody/NNP
's/POS
and/CC
single-B/JJ
by/IN
S&P/NNP
./.
All/DT
parts/NNS
of/IN
the/DT
issue/NN
are/VBP
callable/JJ
at/IN
any/DT
time/NN
at/IN
par/JJ
./.
Continental/NNP
Airlines/NNPS
is/VBZ
a/DT
unit/NN
of/IN
Texas/NNP
Air/NNP
Corp/NNP
./.
John/NNP
V./NNP
Holmes/NNP
,/,
an/DT
investment-newsletter/NN
publisher/NN
,/,
and/CC
three/CD
venture-capital/NN
firms/NNS
he/PRP
organized/VBD
were/VBD
enjoined/VBN
from/IN
violating/VBG
the/DT
registration/NN
provisions/NNS
of/IN
the/DT
securities/NNS
laws/NNS
governing/VBG
investment/NN
companies/NNS
./.
As/IN
part/NN
of/IN
an/DT
agreement/NN
that/WDT
settled/VBD
charges/NNS
brought/VBN
by/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
,/,
a/DT
receiver/NN
was/VBD
also/RB
appointed/VBN
for/IN
the/DT
three/CD
venture-capital/NN
firms/NNS
./.
Mr./NNP
Holmes/NNP
was/VBD
the/DT
subject/NN
of/IN
a/DT
page/NN
one/CD
profile/NN
in/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
in/IN
1984/CD
,/,
after/IN
the/DT
SEC/NNP
questioned/VBD
him/PRP
about/IN
ties/NNS
between/IN
him/PRP
and/CC
companies/NNS
he/PRP
touted/VBD
in/IN
a/DT
newsletter/NN
./.
In/IN
1986/CD
,/,
in/IN
another/DT
consent/NN
agreement/NN
with/IN
the/DT
SEC/NNP
,/,
Mr./NNP
Holmes/NNP
was/VBD
enjoined/VBN
from/IN
violating/VBG
the/DT
stock-registration/NN
and/CC
anti-fraud/JJ
provisions/NNS
of/IN
the/DT
securities/NNS
laws/NNS
./.
Without/IN
any/DT
admission/NN
or/CC
denial/NN
of/IN
guilt/NN
by/IN
Mr./NNP
Holmes/NNP
,/,
that/DT
agreement/NN
settled/VBD
SEC/NNP
charges/NNS
that/IN
Mr./NNP
Holmes/NNP
sold/VBD
unregistered/JJ
securities/NNS
and/CC
misled/VBD
investors/NNS
./.
In/IN
charges/NNS
filed/VBN
last/JJ
week/NN
in/IN
federal/JJ
district/NN
court/NN
in/IN
Charlotte/NNP
,/,
N.C./NNP
,/,
the/DT
SEC/NNP
alleged/VBD
that/IN
Venture/NNP
Capitalists/NNPS
Inc./NNP
,/,
Venture/NNP
Finance/NNP
Corp./NNP
and/CC
New/NNP
Ventures/NNPS
Fund/NNP
Inc./NNP
,/,
all/DT
of/IN
Charlotte/NNP
,/,
failed/VBD
repeatedly/RB
to/TO
file/VB
proper/JJ
documents/NNS
./.
The/DT
SEC/NNP
also/RB
charged/VBD
that/IN
Mr./NNP
Holmes/NNP
acted/VBD
as/IN
an/DT
officer/NN
or/CC
director/NN
of/IN
New/NNP
Ventures/NNP
,/,
in/IN
violation/NN
of/IN
his/PRP$
previous/JJ
consent/NN
agreement/NN
./.
``/``
Some/DT
companies/NNS
were/VBD
delinquent/JJ
in/IN
filings/NNS
and/CC
other/JJ
actions/NNS
,/,
all/DT
of/IN
which/WDT
cost/VBP
money/NN
,/,
''/''
Mr./NNP
Holmes/NNP
said/VBD
./.
Two/CD
of/IN
Mr./NNP
Holmes/NNP
's/POS
business/NN
associates/NNS
who/WP
worked/VBD
for/IN
Venture/NNP
Capitalists/NNPS
,/,
Kimberly/NNP
Ann/NNP
Smith/NNP
and/CC
Frederick/NNP
Byrum/NNP
,/,
also/RB
consented/VBD
to/TO
being/VBG
enjoined/VBN
from/IN
violations/NNS
of/IN
registration/NN
provisions/NNS
of/IN
the/DT
securities/NNS
laws/NNS
./.
Ms./NNP
Smith/NNP
also/RB
agreed/VBD
to/TO
a/DT
permanent/JJ
injunction/NN
barring/VBG
her/PRP
from/IN
acting/VBG
as/IN
an/DT
officer/NN
,/,
director/NN
or/CC
investment/NN
adviser/NN
of/IN
any/DT
mutual/JJ
fund/NN
,/,
unit/NN
investment/NN
trust/NN
or/CC
face-amount/JJ
certificate/NN
company/NN
./.
Mr./NNP
Byrum/NNP
and/CC
Ms./NNP
Smith/NNP
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
In/IN
consenting/VBG
to/TO
the/DT
injunctions/NNS
,/,
none/NN
of/IN
the/DT
individuals/NNS
or/CC
companies/NNS
admitted/VBD
or/CC
denied/VBD
the/DT
allegations/NNS
./.
Senate/NNP
Republicans/NNPS
have/VBP
settled/VBN
on/IN
a/DT
proposal/NN
that/WDT
would/MD
cut/VB
the/DT
capital-gains/NNS
tax/NN
for/IN
individuals/NNS
and/CC
corporations/NNS
./.
At/IN
the/DT
same/JJ
time/NN
,/,
a/DT
small/JJ
group/NN
of/IN
Senate/NNP
Democrats/NNPS
are/VBP
working/VBG
on/IN
a/DT
similar/JJ
plan/NN
and/CC
may/MD
introduce/VB
it/PRP
soon/RB
./.
Sen./NNP
Bob/NNP
Packwood/NNP
R./NNP
,/,
Ore./NNP
the/DT
lead/JJ
sponsor/NN
of/IN
the/DT
GOP/NNP
proposal/NN
,/,
said/VBD
he/PRP
intends/VBZ
to/TO
unveil/VB
the/DT
plan/NN
today/NN
and/CC
to/TO
offer/VB
it/PRP
as/IN
an/DT
amendment/NN
to/TO
whatever/WDT
legislation/NN
comes/VBZ
along/RB
,/,
particularly/RB
this/DT
month/NN
's/POS
bill/NN
to/TO
raise/VB
the/DT
federal/JJ
borrowing/NN
limit/NN
./.
He/PRP
gave/VBD
10-to-1/JJ
odds/NNS
that/IN
a/DT
capital-gains/NNS
tax/NN
cut/NN
of/IN
some/DT
sort/NN
would/MD
be/VB
approved/VBN
this/DT
year/NN
,/,
though/IN
it/PRP
probably/RB
wo/MD
n't/RB
be/VB
included/VBN
in/IN
the/DT
pending/VBG
deficit-reduction/NN
bill/NN
./.
He/PRP
added/VBD
that/IN
he/PRP
expects/VBZ
to/TO
talk/VB
to/TO
the/DT
Democrats/NNPS
who/WP
also/RB
wanted/VBD
to/TO
cut/VB
the/DT
gains/NNS
tax/NN
about/IN
drafting/VBG
a/DT
joint/JJ
proposal/NN
./.
For/IN
individuals/NNS
,/,
the/DT
Packwood/NNP
plan/NN
would/MD
exclude/VB
from/IN
income/NN
5/CD
%/NN
of/IN
the/DT
gain/NN
from/IN
the/DT
sale/NN
of/IN
a/DT
capital/NN
asset/NN
held/VBN
for/IN
more/JJR
than/IN
one/CD
year/NN
./.
The/DT
exclusion/NN
would/MD
rise/VB
five/CD
percentage/NN
points/NNS
for/IN
each/DT
year/NN
the/DT
asset/NN
was/VBD
held/VBN
until/IN
it/PRP
reached/VBD
a/DT
maximum/NN
of/IN
35/CD
%/NN
./.
The/DT
exclusion/NN
would/MD
apply/VB
to/TO
assets/NNS
sold/VBN
after/IN
Oct./NNP
1/CD
,/,
1989/CD
./.
As/IN
an/DT
alternative/NN
,/,
he/PRP
said/VBD
,/,
taxpayers/NNS
could/MD
chose/VBD
to/TO
reduce/VB
their/PRP$
gains/NNS
by/IN
an/DT
inflation/NN
index/NN
./.
For/IN
corporations/NNS
,/,
the/DT
top/JJ
tax/NN
rate/NN
on/IN
the/DT
sale/NN
of/IN
assets/NNS
held/VBN
for/IN
more/JJR
than/IN
three/CD
years/NNS
would/MD
be/VB
cut/VBN
to/TO
33/CD
%/NN
from/IN
the/DT
current/JJ
top/NN
rate/NN
of/IN
34/CD
%/NN
./.
That/DT
rate/NN
would/MD
gradually/RB
decline/VB
to/TO
as/RB
little/JJ
as/IN
29/CD
%/NN
for/IN
corporate/JJ
assets/NNS
held/VBN
for/IN
15/CD
years/NNS
./.
The/DT
Packwood/NNP
plan/NN
would/MD
also/RB
include/VB
a/DT
proposal/NN
,/,
designed/VBN
by/IN
Sen./NNP
William/NNP
Roth/NNP
R./NNP
,/,
Del./NNP
that/WDT
would/MD
expand/VB
and/CC
alter/VB
the/DT
deduction/NN
for/IN
individual/JJ
retirement/NN
accounts/NNS
./.
The/DT
Roth/NNP
plan/NN
would/MD
create/VB
a/DT
new/JJ
,/,
non-deductible/JJ
IRA/NNP
from/IN
which/WDT
money/NN
could/MD
be/VB
withdrawn/VBN
tax-free/JJ
not/RB
only/JJ
for/IN
retirement/NN
,/,
but/CC
also/RB
for/IN
the/DT
purchase/NN
of/IN
a/DT
first/JJ
home/NN
and/CC
to/TO
pay/VB
education/NN
and/CC
medical/JJ
expenses/NNS
./.
Current/JJ
IRAs/NNS
could/MD
be/VB
rolled/VBN
over/RB
into/IN
the/DT
new/JJ
IRAs/NNS
but/CC
would/MD
be/VB
subject/JJ
to/TO
tax/VB
./.
For/IN
their/PRP$
part/NN
,/,
the/DT
group/NN
of/IN
Democrats/NNPS
are/VBP
working/VBG
on/IN
a/DT
plan/NN
that/IN
,/,
like/IN
the/DT
Packwood/NNP
proposal/NN
,/,
would/MD
grant/VB
larger/JJR
exclusions/NNS
to/TO
assets/NNS
the/DT
longer/RB
they/PRP
were/VBD
held/VBN
by/IN
individuals/NNS
and/CC
companies/NNS
./.
Newly/RB
acquired/JJ
assets/NNS
would/MD
get/VB
a/DT
bigger/JJR
break/NN
than/IN
those/DT
currently/RB
held/VBN
./.
An/DT
extra/JJ
exclusion/NN
would/MD
be/VB
given/VBN
to/TO
long-held/JJ
stock/NN
in/IN
small/JJ
and/CC
medium-size/JJ
corporations/NNS
just/RB
starting/VBG
up/RB
./.
No/DT
one/NN
in/IN
the/DT
Senate/NNP
is/VBZ
considering/VBG
the/DT
capital-gains/NNS
plan/NN
passed/VBN
by/IN
the/DT
House/NNP
./.
That/DT
plan/NN
would/MD
provide/VB
a/DT
30/CD
%/NN
exclusion/NN
to/TO
assets/NNS
sold/VBN
over/IN
a/DT
2/CD
1\/2-year/JJ
period/NN
ending/VBG
Dec./NNP
31/CD
,/,
1991/CD
./.
After/IN
then/RB
,/,
the/DT
House/NNP
measure/NN
would/MD
boost/VB
the/DT
tax/NN
rate/NN
to/TO
28/CD
%/NN
and/CC
exclude/VB
from/IN
tax/NN
the/DT
gain/NN
attributable/JJ
to/TO
inflation/NN
./.
Senators/NNS
are/VBP
focusing/VBG
on/IN
making/VBG
a/DT
capital-gains/NNS
differential/NN
permanent/JJ
./.
Separately/RB
,/,
Chairman/NNP
Dan/NNP
Rostenkowski/NNP
D./NNP
,/,
Ill/NNP
./.
the/DT
House/NNP
Ways/NNPS
and/CC
Means/NNP
Committee/NNP
said/VBD
he/PRP
did/VBD
n't/RB
want/VB
the/DT
capital-gains/NNS
tax/NN
cut/NN
or/CC
any/DT
other/JJ
amendments/NNS
attached/VBN
to/TO
the/DT
pending/VBG
bill/NN
raising/VBG
the/DT
federal/JJ
borrowing/NN
limit/NN
./.
The/DT
current/JJ
debt/NN
limit/NN
expires/VBZ
Oct./NNP
31/CD
./.
He/PRP
also/RB
urged/VBD
House/NNP
and/CC
Senate/NNP
negotiators/NNS
to/TO
rid/VB
the/DT
deficit-reduction/NN
bill/NN
of/IN
all/DT
provisions/NNS
that/WDT
increase/VBP
the/DT
budget/NN
deficit/NN
,/,
including/VBG
the/DT
House-passed/JJ
capital-gains/NNS
provision/NN
./.
From/IN
a/DT
helicopter/NN
a/DT
thousand/CD
feet/NNS
above/IN
Oakland/NN
after/IN
the/DT
second-deadliest/JJ
earthquake/NN
in/IN
U.S./NNP
history/NN
,/,
a/DT
scene/NN
of/IN
devastation/NN
emerges/VBZ
:/:
a/DT
freeway/NN
crumbled/VBN
into/IN
a/DT
concrete/JJ
sandwich/NN
,/,
hoses/VBZ
pumping/VBG
water/NN
into/IN
once-fashionable/JJ
apartments/NNS
,/,
abandoned/VBN
autos/NNS
./.
But/CC
this/DT
quake/NN
was/VBD
n't/RB
the/DT
big/JJ
one/NN
,/,
the/DT
replay/NN
of/IN
1906/CD
that/WDT
has/VBZ
been/VBN
feared/VBN
for/IN
so/RB
many/JJ
years/NNS
./.
Despite/IN
the/DT
tragic/JJ
loss/NN
of/IN
more/JJR
than/IN
270/CD
lives/NNS
,/,
and/CC
damage/NN
estimated/VBN
in/IN
the/DT
billions/NNS
,/,
most/JJS
businesses/NNS
and/CC
their/PRP$
plants/NNS
and/CC
offices/NNS
in/IN
the/DT
Bay/NNP
area/NN
were/VBD
n't/RB
greatly/RB
affected/JJ|VBN
./.
The/DT
economic/JJ
life/NN
of/IN
the/DT
region/NN
is/VBZ
expected/VBN
to/TO
revive/VB
in/IN
a/DT
day/NN
or/CC
two/CD
,/,
although/IN
some/DT
transportation/NN
problems/NNS
may/MD
last/VB
weeks/NNS
or/CC
months/NNS
./.
A/DT
main/JJ
factor/NN
mitigating/VBG
more/RBR
widespread/JJ
damage/NN
was/VBD
the/DT
location/NN
of/IN
the/DT
quake/NN
's/POS
epicenter/NN
--/:
20/CD
miles/NNS
from/IN
the/DT
heart/NN
of/IN
the/DT
Silicon/NNP
Valley/NNP
and/CC
more/JJR
than/IN
50/CD
miles/NNS
from/IN
downtown/NN
San/NNP
Francisco/NNP
and/CC
Oakland/NNP
./.
Also/RB
,/,
the/DT
region/NN
's/POS
insistence/NN
on/IN
strict/JJ
building/NN
codes/NNS
helped/VBD
prevent/VB
wider/JJR
damage/NN
./.
The/DT
tremendous/JJ
energy/NN
of/IN
the/DT
quake/NN
was/VBD
dissipated/VBN
by/IN
the/DT
distance/NN
,/,
so/IN
that/IN
most/JJS
parts/NNS
of/IN
the/DT
valley/NN
and/CC
the/DT
major/JJ
cities/NNS
suffered/VBD
largely/RB
cosmetic/JJ
damage/NN
--/:
broken/JJ
windows/NNS
,/,
falling/VBG
brick/NN
and/CC
cornices/NNS
,/,
buckled/JJ
asphalt/NN
or/CC
sidewalks/NNS
./.
Of/IN
course/NN
,/,
the/DT
quake/NN
was/VBD
the/DT
worst/JJS
since/IN
the/DT
emergence/NN
of/IN
the/DT
computer/NN
era/NN
turned/VBD
Silicon/NNP
Valley/NNP
into/IN
the/DT
nation/NN
's/POS
capital/NN
of/IN
high/JJ
technology/NN
./.
Like/IN
other/JJ
major/JJ
American/JJ
cities/NNS
,/,
the/DT
San/NNP
Francisco/NNP
--/:
Oakland/NNP
area/NN
owes/VBZ
its/PRP$
current/JJ
prosperity/NN
more/RBR
to/TO
its/PRP$
infrastructure/NN
of/IN
fiber-optic/JJ
cables/NNS
linking/VBG
thousands/NNS
of/IN
computer/NN
terminals/NNS
and/CC
telephones/NNS
than/IN
to/TO
its/PRP$
location/NN
astride/IN
one/CD
of/IN
the/DT
world/NN
's/POS
great/JJ
natural/JJ
harbors/NNS
./.
When/WRB
the/DT
tremors/NNS
struck/VBD
,/,
the/DT
region/NN
's/POS
largely/RB
unseen/JJ
high-tech/JJ
fabric/NN
held/VBN
up/RB
surprisingly/RB
well/RB
despite/IN
the/DT
devastation/NN
visible/JJ
from/IN
the/DT
air/NN
./.
Michael/NNP
L./NNP
Bandler/NNP
,/,
vice/NN
president/NN
for/IN
network/NN
technology/NN
at/IN
Pacific/NNP
Bell/NNP
Telephone/NNP
Co./NNP
,/,
says/VBZ
nearly/RB
all/PDT
the/DT
network/NN
's/POS
computer/NN
switches/NNS
,/,
which/WDT
move/VBP
thousands/NNS
of/IN
calls/NNS
a/DT
minute/NN
from/IN
one/CD
location/NN
to/TO
another/DT
,/,
changed/VBN
to/TO
battery/NN
power/NN
when/WRB
the/DT
city/NN
lost/VBD
power/NN
./.
The/DT
battery/NN
packs/NNS
have/VBP
enough/JJ
power/NN
for/IN
only/RB
three/CD
hours/NNS
,/,
but/CC
that/DT
gave/VBD
emergency/NN
crews/NNS
time/NN
to/TO
turn/VB
on/RP
an/DT
emergency/NN
system/NN
that/WDT
runs/VBZ
primarily/RB
on/IN
diesel/NN
fuel/NN
./.
Of/IN
some/DT
160/CD
switches/NNS
in/IN
Pacific/NNP
Bell/NNP
's/POS
network/NN
,/,
only/RB
four/CD
went/VBD
down/RB
./.
One/CD
of/IN
those/DT
was/VBD
in/IN
Hollister/NNP
,/,
Calif./NNP
,/,
near/IN
the/DT
earthquake/NN
's/POS
epicenter/NN
./.
Few/JJ
telephone/NN
lines/NNS
snapped/VBN
./.
That/DT
's/VBZ
because/IN
the/DT
widely/RB
used/JJ
fiber-optic/JJ
cable/NN
has/VBZ
been/VBN
installed/VBN
underground/RB
with/IN
25/CD
extra/JJ
feet/NNS
of/IN
cable/NN
between/IN
junction/NN
points/NNS
./.
The/DT
slack/NN
absorbs/VBZ
the/DT
pulling/VBG
strain/NN
generated/VBN
by/IN
an/DT
earthquake/NN
./.
Nevertheless/RB
,/,
phone/NN
service/NN
was/VBD
sporadic/JJ
;/:
many/JJ
computer/NN
terminals/NNS
remained/VBD
dark/JJ
,/,
and/CC
by/IN
late/JJ
yesterday/NN
a/DT
third/JJ
of/IN
San/NNP
Francisco/NNP
remained/VBD
without/IN
power/NN
./.
Business/NN
in/IN
the/DT
nation/NN
's/POS
fourth-largest/JJ
metropolitan/JJ
region/NN
was/VBD
nearly/RB
paralyzed/VBN
;/:
an/DT
estimated/VBN
one/CD
million/CD
members/NNS
of/IN
the/DT
work/NN
force/NN
stayed/VBD
at/IN
home/NN
./.
The/DT
economic/JJ
dislocation/NN
was/VBD
as/RB
abrupt/JJ
as/IN
the/DT
earthquake/NN
itself/PRP
,/,
as/IN
virtually/RB
all/DT
businesses/NNS
shut/VBN
down/RB
./.
The/DT
$/$
125-billion-a-year/JJ
Bay/NNP
area/NN
economy/NN
represents/VBZ
one-fourth/NN
of/IN
the/DT
economy/NN
of/IN
the/DT
nation/NN
's/POS
most/RBS
populous/JJ
state/NN
and/CC
accounts/VBZ
for/IN
2/CD
%/NN
to/TO
3/CD
%/NN
of/IN
the/DT
nation/NN
's/POS
total/JJ
output/NN
of/IN
goods/NNS
and/CC
services/NNS
,/,
according/VBG
to/TO
the/DT
Center/NNP
for/IN
Continuing/NNP
Study/NNP
of/IN
the/DT
California/NNP
Economy/NNP
in/IN
Palo/NNP
Alto/NNP
./.
In/IN
high-tech/JJ
,/,
the/DT
Bay/NNP
area/NN
accounts/VBZ
for/IN
15/CD
%/NN
to/TO
20/CD
%/NN
of/IN
the/DT
U.S./NNP
computer-related/JJ
industry/NN
./.
``/``
This/DT
has/VBZ
been/VBN
a/DT
major/JJ
disruption/NN
for/IN
the/DT
Bay/NNP
area/NN
economy/NN
,/,
''/''
says/VBZ
Pauline/NNP
Sweezey/NNP
,/,
the/DT
chief/JJ
economist/NN
at/IN
the/DT
California/NNP
Department/NNP
of/IN
Finance/NNP
./.
``/``
Obviously/RB
,/,
things/NNS
are/VBP
going/VBG
to/TO
have/VB
to/TO
go/VB
on/IN
hold/NN
for/IN
many/JJ
companies/NNS
./.
''/''
The/DT
damage/NN
to/TO
the/DT
Bay/NNP
area/NN
's/POS
roadways/NNS
could/MD
cause/VB
significant/JJ
economic/JJ
hardship/NN
./.
A/DT
quarter/NN
of/IN
a/DT
million/CD
people/NNS
cross/VBP
the/DT
Bay/NNP
Bridge/NNP
every/DT
day/NN
,/,
far/RB
more/JJR
than/IN
the/DT
100,000/CD
that/WDT
use/VBP
the/DT
Bay/NNP
Area/NNP
Rapid/NNP
Transit/NNP
system/NN
BART/NNP
which/WDT
was/VBD
working/VBG
but/CC
was/VBD
n't/RB
stopping/VBG
in/IN
the/DT
city/NN
's/POS
Financial/NNP
District/NNP
yesterday/NN
afternoon/NN
because/IN
electricity/NN
was/VBD
shut/VBN
off/RB
and/CC
the/DT
area/NN
was/VBD
being/VBG
checked/VBN
for/IN
gas/NN
leaks/NNS
./.
California/NNP
state/NN
transportation/NN
officials/NNS
interviewed/VBN
by/IN
telephone/NN
say/VBP
they/PRP
nevertheless/RB
do/VBP
n't/RB
expect/VB
serious/JJ
problems/NNS
for/IN
commerce/NN
in/IN
and/CC
out/IN
of/IN
the/DT
Bay/NNP
area/NN
./.
All/DT
major/JJ
roadways/NNS
except/IN
Interstate/NN
880/CD
,/,
known/VBN
as/IN
the/DT
Nimitz/NNP
Freeway/NNP
,/,
and/CC
the/DT
Bay/NNP
Bridge/NNP
were/VBD
open/RP
by/IN
1/CD
p.m./RB
yesterday/NN
./.
Officials/NNS
expect/VBP
difficulty/NN
routing/VBG
traffic/NN
through/IN
downtown/NN
San/NNP
Francisco/NNP
./.
The/DT
earthquake/NN
caused/VBD
many/JJ
streets/NNS
to/TO
buckle/VB
and/CC
crack/VB
,/,
making/VBG
them/PRP
impassible/JJ
./.
Other/JJ
roads/NNS
were/VBD
obstructed/VBN
by/IN
collapsed/JJ
buildings/NNS
and/CC
damaged/JJ
water/NN
and/CC
power/NN
lines/NNS
,/,
an/DT
emergency/NN
relief/NN
spokesman/NN
says/VBZ
./.
San/NNP
Francisco/NNP
Mayor/NNP
Art/NNP
Agnos/NNP
estimated/VBD
the/DT
damage/NN
to/TO
his/PRP$
city/NN
alone/JJ
at/IN
$/$
2/CD
billion/CD
./.
But/CC
many/JJ
predicted/VBD
that/IN
the/DT
commercial/JJ
disruption/NN
would/MD
be/VB
short-lived/JJ
./.
Of/IN
the/DT
scores/NNS
of/IN
companies/NNS
contacted/VBN
by/IN
this/DT
newspaper/NN
,/,
few/JJ
reported/VBD
any/DT
damage/NN
that/IN
they/PRP
did/VBD
n't/RB
expect/VB
to/TO
have/VB
remedied/VBN
within/IN
a/DT
day/NN
or/CC
two/CD
./.
It/PRP
is/VBZ
possible/JJ
,/,
of/IN
course/NN
,/,
that/IN
some/DT
of/IN
the/DT
most/RBS
seriously/RB
damaged/JJ
companies/NNS
could/MD
n't/RB
be/VB
reached/VBN
,/,
particularly/RB
in/IN
areas/NNS
nearest/IN
the/DT
epicenter/NN
./.
Typical/JJ
,/,
perhaps/RB
,/,
was/VBD
the/DT
situation/NN
at/IN
New/NNP
United/NNP
Motor/NNP
Manufacturing/NNP
Inc./NNP
,/,
the/DT
General/NNP
Motors/NNPS
Corp.-Toyota/JJ
joint-venture/NN
auto/NN
plant/NN
in/IN
Fremont/NNP
,/,
about/IN
35/CD
miles/NNS
south/RB
of/IN
Oakland/NNP
./.
Ten/CD
of/IN
the/DT
plant/NN
's/POS
workers/NNS
were/VBD
injured/VBN
when/WRB
the/DT
quake/NN
hit/VBD
about/IN
a/DT
half-hour/NN
into/IN
the/DT
afternoon/NN
shift/NN
;/:
seven/CD
were/VBD
hospitalized/VBN
./.
Metal/NN
racks/NNS
on/IN
the/DT
plant/NN
floor/NN
fell/VBD
over/RB
,/,
and/CC
water/NN
mains/NNS
ruptured/VBN
,/,
a/DT
spokeswoman/NN
says/VBZ
./.
The/DT
plant/NN
was/VBD
evacuated/VBN
and/CC
workers/NNS
sent/VBN
home/NN
./.
But/CC
the/DT
plant/NN
was/VBD
able/JJ
to/TO
resume/VB
limited/JJ
production/NN
of/IN
its/PRP$
Toyota/NNP
Corollas/NNPS
and/CC
Geo/NNP
Prizms/NNPS
by/IN
6/CD
a.m./RB
yesterday/NN
,/,
and/CC
absenteeism/NN
was/VBD
only/RB
7/CD
%/NN
of/IN
the/DT
work/NN
force/NN
,/,
about/IN
twice/RB
normal/JJ
./.
Computer/NN
maker/NN
Hewlett-Packard/NNP
Co./NNP
,/,
based/VBN
in/IN
Palo/NNP
Alto/NNP
,/,
says/VBZ
one/CD
of/IN
its/PRP$
buildings/NNS
sustained/VBD
severe/JJ
damage/NN
when/WRB
it/PRP
was/VBD
knocked/VBN
off/RB
its/PRP$
foundation/NN
./.
Other/JJ
buildings/NNS
had/VBD
broken/JJ
glass/NN
,/,
dangling/JJ
light/JJ
fixtures/NNS
and/CC
broken/JJ
pipes/NNS
,/,
a/DT
spokesperson/NN
says/VBZ
,/,
estimating/VBG
the/DT
cost/NN
of/IN
reconstruction/NN
``/``
in/IN
the/DT
millions/NNS
./.
''/''
Most/JJS
banks/NNS
were/VBD
closed/VBN
but/CC
were/VBD
expected/VBN
to/TO
reopen/VB
today/NN
with/IN
few/JJ
problems/NNS
anticipated/VBN
./.
At/IN
the/DT
Federal/NNP
Reserve/NNP
Bank/NNP
of/IN
San/NNP
Francisco/NNP
,/,
Vice/NNP
President/NNP
Robert/NNP
Fienberg/NNP
says/VBZ
operations/NNS
were/VBD
``/``
steaming/VBG
along/RB
as/RB
usual/JJ
''/''
yesterday/NN
afternoon/NN
./.
`/``
When/WRB
the/DT
quake/NN
hit/VBD
,/,
we/PRP
turned/VBD
on/IN
our/PRP$
emergency/NN
generator/NN
and/CC
brought/VBD
our/PRP$
computers/NNS
up/RP
,/,
''/''
he/PRP
says/VBZ
./.
The/DT
Fed/NNP
serves/VBZ
as/IN
a/DT
middleman/NN
for/IN
banks/NNS
,/,
taking/VBG
checks/NNS
from/IN
one/CD
bank/NN
and/CC
sending/VBG
them/PRP
to/TO
another/DT
,/,
an/DT
operation/NN
that/IN
it/PRP
handled/VBD
smoothly/RB
Tuesday/NNP
night/NN
after/IN
the/DT
quake/NN
./.
``/``
The/DT
volume/NN
we/PRP
received/VBD
from/IN
the/DT
banks/NNS
was/VBD
a/DT
lot/RB
lower/JJR
than/IN
usual/JJ
,/,
''/''
he/PRP
says/VBZ
./.
A/DT
disaster-contingency/NN
plan/NN
in/IN
which/WDT
the/DT
Los/NNP
Angeles/NNP
Fed/NNP
would/MD
come/VB
to/TO
San/NNP
Francisco/NNP
's/POS
aid/NN
was/VBD
n't/RB
needed/VBN
,/,
he/PRP
adds/VBZ
./.
Most/JJS
of/IN
the/DT
telephone/NN
problems/NNS
in/IN
the/DT
immediate/JJ
aftermath/NN
stemmed/VBD
from/IN
congestion/NN
./.
The/DT
telephone/NN
network/NN
simply/RB
could/MD
n't/RB
handle/VB
the/DT
large/JJ
number/NN
of/IN
people/NNS
seeking/VBG
to/TO
make/VB
a/DT
call/NN
at/IN
the/DT
same/JJ
time/NN
./.
The/DT
volume/NN
resulted/VBD
in/IN
dial-tone/NN
delays/NNS
that/WDT
were/VBD
as/RB
short/JJ
as/IN
15/CD
seconds/NNS
and/CC
as/RB
long/JJ
as/IN
five/CD
minutes/NNS
./.
Mr./NNP
Bandler/NNP
puts/VBZ
traffic/NN
volume/NN
at/IN
10/CD
to/TO
50/CD
times/NNS
normal/JJ
./.
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
Co./NNP
,/,
MCI/NNP
Communications/NNPS
Inc./NNP
and/CC
United/NNP
Telecommunications/NNPS
'/POS
U/NNP
S/NNP
Sprint/NNP
unit/NN
were/VBD
blocking/VBG
phone/NN
calls/NNS
into/IN
the/DT
Bay/NNP
area/NN
to/TO
alleviate/VB
congestion/NN
./.
The/DT
companies/NNS
block/VBP
traffic/NN
much/RB
as/IN
highway/NN
on-ramps/NNS
are/VBP
blocked/VBN
when/WRB
traffic/NN
backs/VBZ
up/RB
./.
William/NNP
E./NNP
Downing/NNP
,/,
Pacific/NNP
Bell/NNP
's/POS
vice/NN
president/NN
of/IN
customer/NN
services/NNS
for/IN
the/DT
Bay/NNP
area/NN
,/,
says/VBZ
most/JJS
long-distance/NN
companies/NNS
were/VBD
blocking/VBG
about/IN
50/CD
%/NN
of/IN
all/DT
calls/NNS
./.
Pacific/NNP
Telesis/NNP
says/VBZ
its/PRP$
Pacific/NNP
Bell/NNP
unit/NN
also/RB
was/VBD
blocking/VBG
about/IN
50/CD
%/NN
of/IN
its/PRP$
calls/NNS
locally/RB
./.
Ironically/RB
,/,
the/DT
long-term/JJ
effect/NN
of/IN
the/DT
earthquake/NN
may/MD
be/VB
to/TO
bolster/VB
the/DT
Bay/NNP
area/NN
's/POS
economic/JJ
fortunes/NNS
and/CC
,/,
indeed/RB
,/,
the/DT
nation/NN
's/POS
gross/JJ
national/JJ
product/NN
./.
It/PRP
may/MD
also/RB
lead/VB
to/TO
new/JJ
safeguards/NNS
in/IN
major/JJ
construction/NN
projects/NNS
such/JJ
as/IN
double-deck/JJ
highways/NNS
./.
``/``
It/PRP
would/MD
in/IN
the/DT
near-term/JJ
give/VB
a/DT
boost/NN
to/TO
the/DT
San/NNP
Francisco/NNP
economy/NN
because/IN
there/EX
will/MD
be/VB
an/DT
influx/NN
of/IN
people/NNS
to/TO
help/VB
,/,
''/''
says/VBZ
Beth/NNP
Burnham/NNP
Mace/NNP
,/,
a/DT
regional/JJ
economist/NN
at/IN
DRI\/McGraw/NNP
Hill/NNP
,/,
a/DT
Lexington/NNP
,/,
Mass./NNP
,/,
forecasting/NN
firm/NN
./.
The/DT
construction/NN
industry/NN
is/VBZ
sure/JJ
to/TO
feel/VB
increased/VBN
demand/NN
./.
``/``
There/EX
will/MD
be/VB
a/DT
big/JJ
influx/NN
of/IN
federal/JJ
dollars/NNS
and/CC
gains/NNS
in/IN
state/NN
,/,
federal/JJ
and/CC
local/JJ
employment/NN
,/,
''/''
Ms./NNP
Mace/NNP
says/VBZ
./.
Adds/VBZ
Stacy/NNP
Kotman/NNP
,/,
an/DT
economist/NN
at/IN
Georgia/NNP
State/NNP
University/NNP
,/,
``/``
There/EX
's/VBZ
nothing/NN
positive/JJ
about/IN
an/DT
earthquake/NN
,/,
but/CC
it/PRP
will/MD
probably/RB
generate/VB
more/JJR
construction/NN
activity/NN
./.
''/''
Wall/NNP
Street/NNP
reacted/VBD
swiftly/RB
yesterday/NN
to/TO
the/DT
disaster/NN
by/IN
bidding/NN
up/RP
stocks/NNS
of/IN
construction/NN
and/CC
related/JJ
companies/NNS
./.
Shares/NNS
of/IN
Lone/NNP
Star/NNP
Industries/NNPS
Inc./NNP
,/,
a/DT
cement/NN
maker/NN
,/,
rose/VBD
sharply/RB
in/IN
anticipation/NN
of/IN
stepped-up/JJ
demand/NN
./.
In/IN
Greenwich/NNP
,/,
Conn./NNP
,/,
Lone/NNP
Star/NNP
spokesman/NN
Michael/NNP
London/NNP
says/VBZ
,/,
``/``
Obviously/RB
with/IN
an/DT
earthquake/NN
of/IN
this/DT
size/NN
,/,
there/EX
are/VBP
likely/JJ
to/TO
be/VB
construction/NN
projects/NNS
that/WDT
would/MD
n't/RB
otherwise/RB
have/VB
been/VBN
anticipated/VBN
./.
But/CC
any/DT
increase/NN
is/VBZ
n't/RB
likely/JJ
to/TO
be/VB
any/DT
kind/NN
of/IN
a/DT
surge/NN
./.
It/PRP
's/VBZ
something/NN
likely/JJ
to/TO
be/VB
spread/VBN
out/RB
over/IN
a/DT
long/JJ
period/NN
of/IN
time/NN
./.
There/EX
will/MD
be/VB
a/DT
lot/NN
of/IN
repair/NN
work/NN
that/WDT
wo/MD
n't/RB
require/VB
the/DT
quantities/NNS
of/IN
cement/NN
or/CC
concrete/NN
that/IN
new/JJ
constructon/NN
would/MD
./.
''/''
Lone/NNP
Star/NNP
's/POS
San/NNP
Francisco/NNP
facilities/NNS
were/VBD
n't/RB
damaged/VBN
in/IN
the/DT
quake/NN
./.
The/DT
earthquake/NN
is/VBZ
likely/JJ
to/TO
reduce/VB
GNP/NNP
negligibly/RB
in/IN
the/DT
near/JJ
term/NN
and/CC
then/RB
could/MD
raise/VB
it/PRP
a/DT
bit/NN
as/IN
rebuilding/NN
begins/VBZ
./.
The/DT
first/JJ
effects/NNS
are/VBP
,/,
of/IN
course/NN
,/,
negative/JJ
as/IN
work/NN
is/VBZ
disrupted/VBN
and/CC
people/NNS
lose/VBP
income/NN
and/CC
cut/VBP
spending/NN
./.
Corporate/JJ
profits/NNS
may/MD
also/RB
dip/VB
initially/RB
./.
Many/JJ
of/IN
the/DT
lost/JJ
tourism/NN
dollars/NNS
wo/MD
n't/RB
be/VB
recovered/VBN
;/:
many/JJ
trips/NNS
delayed/VBN
never/RB
take/VB
place/NN
./.
Subsequently/RB
,/,
however/RB
,/,
the/DT
ill/JJ
effects/NNS
are/VBP
likely/JJ
to/TO
be/VB
offset/VBN
,/,
at/IN
least/JJS
in/IN
economic/JJ
terms/NNS
,/,
as/IN
construction/NN
activity/NN
begins/VBZ
./.
Because/IN
of/IN
the/DT
way/NN
the/DT
government/NN
keeps/VBZ
its/PRP$
books/NNS
,/,
the/DT
damage/NN
to/TO
the/DT
Bay/NNP
Bridge/NNP
,/,
however/RB
costly/JJ
,/,
wo/MD
n't/RB
be/VB
counted/VBN
as/IN
a/DT
minus/NN
./.
The/DT
money/NN
spent/VBN
on/IN
repairs/NNS
will/MD
be/VB
counted/VBN
as/IN
a/DT
plus/NN
./.
``/``
It/PRP
's/VBZ
very/RB
difficult/JJ
to/TO
model/VB
the/DT
long-term/JJ
impact/NN
of/IN
this/DT
,/,
''/''
says/VBZ
Andrew/NNP
Goldberg/NNP
,/,
who/WP
studies/VBZ
the/DT
public-policy/NN
and/CC
crisis-management/NN
aspects/NNS
of/IN
earthquakes/NNS
at/IN
the/DT
Center/NNP
for/IN
Strategic/NNP
International/NNP
Studies/NNPS
in/IN
Washington/NNP
,/,
D.C/NNP
./.
``/``
You/PRP
certainly/RB
can/MD
say/VB
it/PRP
's/VBZ
going/VBG
to/TO
be/VB
extremely/RB
severe/JJ
./.
We/PRP
really/RB
are/VBP
talking/VBG
about/IN
shutting/VBG
down/RP
a/DT
major/JJ
American/JJ
city/NN
for/IN
a/DT
number/NN
of/IN
days/NNS
,/,
maybe/RB
for/IN
a/DT
few/JJ
weeks/NNS
./.
''/''
Mr./NNP
Goldberg/NNP
says/VBZ
the/DT
cost/NN
of/IN
the/DT
earthquake/NN
will/MD
definitely/RB
top/VB
$/$
1/CD
billion/CD
and/CC
could/MD
reach/VB
$/$
4/CD
billion/CD
./.
He/PRP
cautions/VBZ
that/IN
early/JJ
damage/NN
estimates/NNS
are/VBP
often/RB
low/JJ
;/:
the/DT
damage/NN
totals/NNS
in/IN
Hurricane/NNP
Hugo/NNP
increased/VBN
tenfold/RB
as/IN
more/JJR
information/NN
was/VBD
received/VBN
./.
The/DT
earthquake/NN
damage/NN
,/,
of/IN
course/NN
,/,
would/MD
have/VB
been/VBN
far/RB
greater/JJR
if/IN
the/DT
epicenter/NN
had/VBD
been/VBN
in/IN
downtown/NN
San/NNP
Francisco/NNP
./.
A/DT
direct/JJ
hit/NN
on/IN
a/DT
major/JJ
city/NN
,/,
Mr./NNP
Goldberg/NNP
figures/NNS
,/,
would/MD
cause/VB
$/$
20/CD
billion/CD
to/TO
$/$
40/CD
billion/CD
of/IN
damage/NN
./.
Experts/NNS
caution/VBP
that/IN
it/PRP
is/VBZ
far/RB
too/RB
soon/RB
for/IN
reliable/JJ
estimates/NNS
of/IN
the/DT
quake/NN
's/POS
total/NN
damage/NN
,/,
but/CC
it/PRP
's/VBZ
clear/JJ
that/IN
insurers/NNS
are/VBP
likely/JJ
to/TO
pay/VB
out/RP
enormous/JJ
sums/NNS
./.
Jack/NNP
Byrne/NNP
,/,
the/DT
chairman/NN
of/IN
Fireman/NN
's/POS
Fund/NNP
Corp./NNP
,/,
which/WDT
is/VBZ
based/VBN
in/IN
Novato/NNP
,/,
Calif./NNP
,/,
estimates/VBZ
insured/JJ
losses/NNS
resulting/VBG
the/DT
earthquake/NN
could/MD
total/VB
$/$
2/CD
billion/CD
./.
The/DT
impact/NN
on/IN
the/DT
insurance/NN
industry/NN
``/``
will/MD
be/VB
big/JJ
and/CC
harsh/JJ
,/,
but/CC
less/JJR
than/IN
{/(
Hurricane/NNP
Hugo/NNP
,/,
''/''
says/VBZ
Mr./NNP
Byrne/NNP
,/,
who/WP
toured/VBD
the/DT
Bay/NNP
area/NN
by/IN
car/NN
yesterday/NN
afternoon/NN
to/TO
get/VB
a/DT
sense/NN
of/IN
the/DT
company/NN
's/POS
exposure/NN
to/TO
the/DT
earthquake/NN
./.
Mr./NNP
Byrne/NNP
says/VBZ
Fireman/NNP
's/POS
Fund/NNP
will/MD
probably/RB
pay/VB
hundreds/NNS
of/IN
millions/NNS
in/IN
primary/JJ
claims/NNS
,/,
but/CC
,/,
after/IN
taxes/NNS
and/CC
use/NN
of/IN
its/PRP$
reinsurance/NN
lines/NNS
,/,
the/DT
company/NN
's/POS
fourthquarter/NN
charge/NN
against/IN
earnings/NNS
should/MD
n't/RB
top/VB
$/$
50/CD
million/CD
./.
The/DT
company/NN
was/VBD
able/JJ
to/TO
assess/VB
its/PRP$
damage/NN
liability/NN
quickly/RB
because/IN
it/PRP
has/VBZ
computerized/JJ
maps/NNS
of/IN
Northern/JJ
California/NNP
showing/VBG
the/DT
exact/JJ
locations/NNS
of/IN
all/PDT
the/DT
property/NN
it/PRP
insures/VBZ
./.
Fireman/NNP
's/POS
Fund/NNP
had/VBD
claims/NNS
adjusters/NNS
on/IN
the/DT
streets/NNS
of/IN
San/NNP
Francisco/NNP
right/RB
after/IN
sunrise/NN
yesterday/NN
and/CC
was/VBD
paying/VBG
as/RB
many/JJ
claims/NNS
as/IN
it/PRP
could/MD
right/RB
on/IN
the/DT
spot/NN
./.
Fireman/NNP
's/POS
Fund/NNP
insures/VBZ
37,300/CD
homes/NNS
and/CC
autos/NNS
and/CC
35,000/CD
businesses/NNS
in/IN
the/DT
Bay/NNP
area/NN
./.
In/IN
addition/NN
to/TO
paying/VBG
for/IN
earthquake/NN
and/CC
fire/NN
damage/NN
,/,
the/DT
insurer/NN
must/MD
cover/VB
worker-compensation/NN
claims/NNS
and/CC
also/RB
losses/NNS
due/RB
to/TO
businesses/NNS
being/VBG
shut/VBN
down/RB
by/IN
lack/NN
of/IN
power/NN
or/CC
phone/NN
service/NN
./.
But/CC
many/JJ
Californians/NNPS
may/MD
not/RB
have/VB
adequate/JJ
insurance/NN
coverage/NN
to/TO
pay/VB
for/IN
damages/NNS
to/TO
their/PRP$
property/NN
./.
The/DT
Independent/NNP
Insurance/NNP
Agents/NNPS
of/IN
America/NNP
says/VBZ
fewer/JJR
than/IN
one/CD
of/IN
every/DT
five/CD
California/NNP
homeowners/NNS
has/VBZ
earthquake/NN
insurance/NN
./.
A/DT
somewhat/RB
higher/JJR
percentage/NN
of/IN
people/NNS
living/VBG
in/IN
the/DT
Bay/NNP
area/NN
have/VBP
bought/VBN
the/DT
additional/JJ
insurance/NN
protection/NN
,/,
but/CC
the/DT
great/JJ
majority/NN
are/VBP
n't/RB
covered/VBN
./.
Earthquake/NN
insurance/NN
typically/RB
runs/VBZ
$/$
200/CD
or/CC
more/JJR
a/DT
year/NN
for/IN
a/DT
small/JJ
house/NN
./.
Whatever/WDT
the/DT
long-term/JJ
economic/JJ
effect/NN
,/,
the/DT
scene/NN
from/IN
the/DT
helicopter/NN
above/IN
Oakland/NNP
is/VBZ
one/NN
of/IN
tragedy/NN
./.
Gargantuan/JJ
sections/NNS
of/IN
a/DT
double-decker/JJ
freeway/NN
have/VBP
been/VBN
heaved/VBN
about/RB
like/IN
plastic/JJ
building/NN
blocks/NNS
./.
Atop/IN
them/PRP
sit/VBP
cars/NNS
and/CC
trucks/NNS
abandoned/VBN
in/IN
a/DT
terrifying/JJ
scramble/NN
to/TO
safety/VB
the/DT
day/NN
before/RB
./.
In/IN
areas/NNS
where/WRB
the/DT
freeway/NN
made/VBD
giant/JJ
concrete/JJ
sandwiches/NNS
of/IN
itself/PRP
lie/VBP
cars/NNS
that/IN
police/NNS
say/VBP
have/VBP
been/VBN
flattened/VBN
into/IN
foot-thick/JJ
slabs/NNS
./.
On/IN
the/DT
periphery/NN
,/,
rescue/NN
workers/NNS
seem/VBP
,/,
from/IN
the/DT
air/NN
,/,
to/TO
move/VB
in/IN
slow/JJ
motion/NN
./.
They/PRP
peck/VBP
away/RB
at/IN
the/DT
1/CD
1\/2-mile/JJ
section/NN
of/IN
rubble/NN
,/,
searching/VBG
for/IN
more/JJR
of/IN
the/DT
250/CD
people/NNS
thought/VBN
to/TO
have/VB
died/VBN
here/RB
./.
About/IN
20/CD
other/JJ
deaths/NNS
were/VBD
also/RB
attributed/VBN
to/TO
the/DT
earthquake/NN
./.
The/DT
heart/NN
of/IN
the/DT
earthquake/NN
,/,
6.9/CD
on/IN
the/DT
Richter/NNP
scale/NN
,/,
was/VBD
50/CD
miles/NNS
to/TO
the/DT
south/NN
,/,
near/IN
Santa/NNP
Cruz/NNP
,/,
but/CC
its/PRP$
terrible/JJ
fist/NN
struck/VBD
here/RB
on/IN
the/DT
Nimitz/NNP
Freeway/NNP
,/,
a/DT
major/JJ
artery/NN
serving/VBG
the/DT
Bay/NNP
Bridge/NNP
between/IN
Oakland/NNP
and/CC
San/NNP
Francisco/NNP
./.
Along/IN
the/DT
way/NN
,/,
the/DT
quake/NN
toppled/VBD
a/DT
mall/NN
in/IN
Santa/NNP
Cruz/NNP
,/,
knocked/VBD
down/RP
buildings/NNS
in/IN
San/NNP
Francisco/NNP
's/POS
fashionable/JJ
Marina/NNP
District/NNP
and/CC
sent/VBD
a/DT
wall/NN
of/IN
bricks/NNS
crashing/VBG
on/IN
motorists/NNS
in/IN
the/DT
city/NN
's/POS
Financial/JJ
District/NN
./.
Just/RB
a/DT
short/JJ
span/NN
across/IN
the/DT
bay/NN
to/TO
the/DT
west/NN
,/,
the/DT
quake/NN
also/RB
showed/VBD
its/PRP$
mettle/NN
:/:
A/DT
four-square-block/JJ
area/NN
of/IN
the/DT
Marina/NNP
District/NNP
lies/VBZ
smoldering/VBG
under/IN
a/DT
steady/JJ
stream/NN
of/IN
seawater/NN
being/NN
pumped/VBN
onto/IN
rubble/NN
to/TO
prevent/VB
it/PRP
from/IN
blazing/VBG
anew/RB
./.
Many/JJ
of/IN
the/DT
buildings/NNS
,/,
mostly/RB
condominiums/NNS
and/CC
apartments/NNS
,/,
were/VBD
flattened/VBN
almost/RB
instantly/RB
as/IN
the/DT
underlying/VBG
soil/NN
--/:
much/JJ
of/IN
it/PRP
landfill/NN
--/:
was/VBD
literally/RB
turned/VBN
to/TO
ooze/VB
by/IN
the/DT
quake/NN
's/POS
intensive/JJ
shaking/VBG
,/,
rupturing/VBG
gas/NN
lines/NNS
./.
Onlookers/NNS
say/VBP
three/CD
persons/NNS
died/VBD
when/WRB
one/CD
of/IN
the/DT
buildings/NNS
exploded/VBD
into/IN
a/DT
fireball/NN
shortly/RB
after/IN
the/DT
quake/NN
struck/VBD
./.
Efforts/NNS
to/TO
fight/VB
the/DT
blaze/NN
were/VBD
hampered/VBN
because/IN
water/NN
mains/NNS
were/VBD
severed/VBN
as/RB
well/RB
./.
From/IN
the/DT
air/NN
,/,
ribbons/NNS
of/IN
yellow/JJ
fire/NN
hose/NN
carry/VBP
water/NN
from/IN
the/DT
bay/NN
to/TO
high-pressure/JJ
nozzles/NNS
trained/VBN
on/IN
the/DT
site/NN
./.
As/IN
onlookers/NNS
stand/VBP
behind/IN
barricades/NNS
,/,
helmeted/JJ
firemen/NNS
and/CC
building/NN
inspectors/NNS
survey/VBP
rows/NNS
of/IN
nearby/JJ
buildings/NNS
that/WDT
were/VBD
twisted/VBN
from/IN
their/PRP$
foundations/NNS
and/CC
seem/VBP
on/IN
the/DT
verge/NN
of/IN
collapse/NN
./.
In/IN
the/DT
Marina/NNP
District/NNP
,/,
residents/NNS
spent/VBD
yesterday/NN
assessing/VBG
damage/NN
,/,
cleaning/VBG
up/RB
and/CC
trying/VBG
to/TO
find/VB
friends/NNS
and/CC
neighbors/NNS
./.
Evelyn/NNP
Boccone/NNP
,/,
85/CD
years/NNS
old/JJ
,/,
has/VBZ
lived/VBN
in/IN
the/DT
district/NN
most/JJS
of/IN
her/PRP$
life/NN
./.
Her/PRP$
parents/NNS
lost/VBD
everything/NN
in/IN
the/DT
1906/CD
earthquake/NN
./.
``/``
Now/RB
,/,
we/PRP
realize/VBP
what/WP
our/PRP$
mothers/NNS
must/MD
have/VB
gone/VBN
through/IN
,/,
''/''
she/PRP
says/VBZ
./.
``/``
We/PRP
always/RB
heard/VBD
about/IN
the/DT
earthquake/NN
,/,
but/CC
as/IN
children/NNS
we/PRP
did/VBD
n't/RB
always/RB
listen/VB
./.
''/''
PRINCE/NNP
HENRI/NNP
is/VBZ
the/DT
crown/NN
prince/NN
and/CC
hereditary/JJ
grand/JJ
duke/NN
of/IN
Luxembourg/NNP
./.
An/DT
article/NN
in/IN
the/DT
World/NNP
Business/NNP
Report/NNP
of/IN
Sept./NNP
22/CD
editions/NNS
incorrectly/RB
referred/VBD
to/TO
his/PRP$
father/NN
,/,
Grand/NNP
Duke/NNP
Jean/NNP
,/,
as/IN
the/DT
crown/NN
prince/NN
./.
World/NN
Business/NN
A/DT
Special/JJ
Report/NN
The/DT
Uncommon/JJ
Market/NN
--/:
Towering/JJ
Babble/NN
:/:
An/DT
Automatic/JJ
Translation/NN
System/NN
Proves/VBZ
That/IN
to/TO
Err/VB
Is/VBZ
n't/RB
Just/RB
Human/JJ
''/''
--/:
WSJ/NNP
Sept./NNP
22/CD
,/,
1989/CD
}/)
Resolution/NNP
Funding/NNP
Corp./NNP
plans/VBZ
to/TO
sell/VB
$/$
4.5/CD
billion/CD
of/IN
30-year/JJ
bonds/NNS
Wednesday/NNP
in/IN
the/DT
agency/NN
's/POS
first/JJ
sale/NN
of/IN
securities/NNS
./.
The/DT
new/JJ
bonds/NNS
will/MD
be/VB
dated/VBN
Oct./NNP
30/CD
and/CC
mature/VB
Oct./NNP
15/CD
,/,
2019/CD
./.
Tenders/NNS
for/IN
the/DT
bonds/NNS
,/,
available/JJ
in/IN
minimum/JJ
denominations/NNS
of/IN
$/$
1,000/CD
,/,
must/MD
be/VB
received/VBN
by/IN
1/CD
p.m./RB
EDT/NNP
Wednesday/NNP
at/IN
Federal/NNP
Reserve/NNP
banks/NNS
./.
Refcorp/NNP
,/,
created/VBN
by/IN
the/DT
thrift-overhaul/NN
law/NN
enacted/VBN
in/IN
August/NNP
,/,
will/MD
use/VB
the/DT
proceeds/NNS
to/TO
merge/VB
or/CC
sell/VB
off/RP
ailing/JJ
savings-and-loan/NN
institutions/NNS
./.
Congress/NNP
authorized/VBD
$/$
50/CD
billion/CD
to/TO
be/VB
borrowed/VBN
to/TO
pay/VB
for/IN
the/DT
thrift/NN
bailout/NN
./.
Of/IN
that/DT
amount/NN
,/,
$/$
20/CD
billion/CD
has/VBZ
already/RB
been/VBN
borrowed/VBN
by/IN
the/DT
Treasury/NNP
Department/NNP
./.
Unless/IN
otherwise/RB
specified/VBN
in/IN
a/DT
particular/JJ
offer/NN
,/,
the/DT
bonds/NNS
wo/MD
n't/RB
be/VB
subject/JJ
to/TO
redemption/NN
prior/RB
to/TO
maturity/NN
./.
Interest/NN
payments/NNS
on/IN
the/DT
bonds/NNS
will/MD
be/VB
payable/JJ
semiannually/RB
./.
The/DT
bonds/NNS
are/VBP
subject/JJ
to/TO
federal/JJ
taxation/NN
in/IN
the/DT
U.S./NNP
,/,
including/VBG
income/NN
taxes/NNS
./.
At/IN
the/DT
state/NN
and/CC
local/JJ
level/NN
,/,
the/DT
bonds/NNS
are/VBP
subject/JJ
to/TO
surtaxes/NNS
and/CC
estate/NN
,/,
inheritance/NN
and/CC
gift/NN
taxes/NNS
,/,
but/CC
exempt/JJ
from/IN
taxation/NN
as/IN
to/TO
principal/NN
and/CC
interest/NN
./.
G.D./NNP
Searle/NNP
&/CC
Co./NNP
,/,
a/DT
Monsanto/NNP
Co./NNP
unit/NN
,/,
is/VBZ
launching/VBG
a/DT
program/NN
to/TO
give/VB
consumers/NNS
more/JJR
information/NN
about/IN
its/PRP$
drugs/NNS
when/WRB
doctors/NNS
prescribe/VBP
them/PRP
./.
Called/VBN
Patients/NNPS
in/IN
the/DT
Know/NNP
,/,
the/DT
program/NN
features/VBZ
fact/NN
sheets/NNS
designed/VBN
to/TO
be/VB
easy/JJ
to/TO
understand/VB
./.
The/DT
sheets/NNS
tell/VBP
how/WRB
the/DT
medicine/NN
works/VBZ
,/,
describe/VBP
how/WRB
to/TO
use/VB
it/PRP
and/CC
list/VBP
its/PRP$
possible/JJ
side/NN
effects/NNS
./.
They/PRP
are/VBP
designed/VBN
to/TO
be/VB
given/VBN
to/TO
patients/NNS
by/IN
their/PRP$
doctors/NNS
when/WRB
the/DT
medicines/NNS
are/VBP
prescribed/VBN
and/CC
include/VBP
space/NN
for/IN
the/DT
doctor/NN
to/TO
write/VB
special/JJ
instructions/NNS
./.
In/IN
addition/NN
,/,
Searle/NNP
will/MD
give/VB
pharmacists/NNS
brochures/NNS
on/IN
the/DT
use/NN
of/IN
prescription/NN
drugs/NNS
for/IN
distribution/NN
in/IN
their/PRP$
stores/NNS
./.
Consumer/NN
groups/NNS
have/VBP
long/RB
advocated/VBN
that/IN
drug/NN
companies/NNS
and/CC
doctors/NNS
make/VB
more/JJR
information/NN
available/JJ
to/TO
patients/NNS
./.
``/``
We/PRP
believe/VBP
that/IN
every/DT
drug/NN
that/WDT
's/VBZ
marketed/VBN
to/TO
a/DT
consumer/NN
should/MD
have/VB
a/DT
consumer/NN
label/NN
,/,
''/''
said/VBD
Douglas/NNP
Teich/NNP
of/IN
the/DT
Public/NNP
Citizen/NNP
Health/NNP
Research/NNP
Group/NNP
,/,
a/DT
Ralph/NNP
Nader/NNP
affiliate/NN
./.
Dr./NNP
Teich/NNP
said/VBD
Searle/NNP
is/VBZ
``/``
the/DT
only/JJ
company/NN
I/PRP
know/VBP
that/DT
voluntarily/RB
''/''
will/MD
make/VB
consumer/NN
information/NN
available/JJ
./.
According/VBG
to/TO
federal/JJ
officials/NNS
and/CC
drug-industry/NN
studies/NNS
,/,
nearly/RB
half/NN
of/IN
the/DT
1.6/CD
billion/CD
prescriptions/NNS
filled/VBN
each/DT
year/NN
are/VBP
n't/RB
used/VBN
properly/RB
,/,
meaning/VBG
that/DT
money/NN
is/VBZ
wasted/VBN
on/IN
some/DT
prescriptions/NNS
and/CC
patients/NNS
are/VBP
deprived/VBN
of/IN
the/DT
benefits/NNS
of/IN
medication/NN
./.
``/``
We/PRP
think/VBP
it/PRP
's/VBZ
very/RB
important/JJ
to/TO
provide/VB
as/IN
much/JJ
information/NN
as/IN
possible/JJ
on/IN
the/DT
drugs/NNS
consumers/NNS
take/VBP
,/,
''/''
said/VBD
Searle/NNP
Chairman/NN
Sheldon/NNP
Gilgore/NNP
./.
Bond/NN
prices/NNS
rambled/VBD
yesterday/NN
as/IN
investors/NNS
kept/VBD
close/JJ
watch/NN
on/IN
the/DT
stock/NN
market/NN
and/CC
worried/VBD
about/IN
a/DT
wave/NN
of/IN
new/JJ
supply/NN
./.
Early/RB
yesterday/NN
,/,
bonds/NNS
rose/VBD
as/IN
investors/NNS
rushed/VBD
to/TO
buy/VB
Treasury/NNP
securities/NNS
on/IN
the/DT
prospect/NN
that/IN
stocks/NNS
would/MD
plummet/VB
in/IN
the/DT
aftermath/NN
of/IN
the/DT
massive/JJ
California/NNP
earthquake/NN
./.
For/IN
example/NN
,/,
some/DT
securities/NNS
analysts/NNS
warned/VBD
that/IN
stocks/NNS
of/IN
certain/JJ
insurance/NN
companies/NNS
,/,
which/WDT
face/VBP
massive/JJ
damage/NN
claims/NNS
,/,
would/MD
get/VB
hit/VB
hard/RB
./.
But/CC
when/WRB
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
rose/VBD
instead/RB
,/,
bonds/NNS
drifted/VBD
lower/RBR
./.
With/IN
stocks/NNS
not/RB
a/DT
major/JJ
focus/NN
,/,
``/``
we/PRP
're/VBP
waiting/VBG
for/IN
the/DT
next/JJ
guiding/VBG
light/NN
,/,
''/''
said/VBD
Brian/NNP
J./NNP
Fabbri/NNP
,/,
chief/JJ
economist/NN
at/IN
Midland/NNP
Montagu/NNP
Securities/NNPS
Inc/NNP
./.
``/``
If/IN
the/DT
stock/NN
market/NN
tremors/NNS
are/VBP
behind/IN
us/PRP
,/,
then/RB
the/DT
bond/NN
market/NN
will/MD
go/VB
back/RB
to/TO
looking/VBG
at/IN
the/DT
next/JJ
batch/NN
of/IN
economic/JJ
numbers/NNS
to/TO
determine/VB
''/''
where/WRB
interest/NN
rates/NNS
are/VBP
heading/VBG
./.
The/DT
Treasury/NNP
's/POS
benchmark/NN
30-year/JJ
bond/NN
,/,
which/WDT
jumped/VBD
3\/8/CD
point/NN
,/,
or/CC
about/IN
$/$
3.75/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
,/,
during/IN
the/DT
first/JJ
hour/NN
of/IN
trading/NN
,/,
ended/VBD
little/RB
changed/JJ
./.
Interest/NN
rates/NNS
barely/RB
budged/VBN
from/IN
Tuesday/NNP
's/POS
levels/NNS
./.
Most/JJS
junk/NN
bonds/NNS
,/,
which/WDT
have/VBP
been/VBN
battered/VBN
in/IN
recent/JJ
weeks/NNS
,/,
continued/VBD
a/DT
slow/JJ
recuperation/NN
and/CC
ended/VBN
unchanged/JJ
to/TO
slightly/RB
higher/RBR
./.
But/CC
some/DT
so-called/JJ
high-quality/JJ
junk/NN
issues/NNS
fell/VBD
as/IN
some/DT
mutual/JJ
funds/NNS
sold/VBD
their/PRP$
most/RBS
liquid/JJ
issues/NNS
to/TO
raise/VB
cash/NN
./.
RJR/NNP
Holdings/NNPS
Capital/NNP
Corp./NNP
's/POS
14.7/CD
%/NN
bonds/NNS
due/JJ
2009/CD
fell/VBD
one/CD
point/NN
./.
Other/JJ
RJR/NNP
issues/NNS
fell/VBD
between/IN
1\/2/CD
point/NN
and/CC
1/CD
1\/2/CD
point/NN
./.
In/IN
the/DT
latest/JJS
sign/NN
of/IN
how/WRB
difficult/JJ
it/PRP
is/VBZ
to/TO
place/VB
certain/JJ
junk/NN
bonds/NNS
,/,
Continental/NNP
Airlines/NNPS
said/VBD
it/PRP
was/VBD
forced/VBN
to/TO
scale/VB
back/RB
the/DT
size/NN
of/IN
its/PRP$
latest/JJS
offering/NN
./.
Continental/NNP
,/,
a/DT
unit/NN
of/IN
Texas/NNP
Air/NNP
Corp./NNP
,/,
slashed/VBD
the/DT
size/NN
of/IN
its/PRP$
note/NN
offering/NN
from/IN
$/$
150/CD
million/CD
to/TO
$/$
71/CD
million/CD
./.
The/DT
move/NN
had/VBD
been/VBN
widely/RB
expected/VBN
./.
In/IN
the/DT
multipart/JJ
offering/NN
,/,
the/DT
company/NN
sold/VBD
a/DT
portion/NN
of/IN
secured/JJ
notes/NNS
but/CC
shelved/VBD
all/PDT
the/DT
unsecured/JJ
notes/NNS
./.
A/DT
Continental/NNP
spokeswoman/NN
said/VBD
the/DT
notes/NNS
may/MD
be/VB
offered/VBN
at/IN
a/DT
later/JJ
date/NN
./.
``/``
This/DT
was/VBD
not/RB
a/DT
do-or-die/JJ
deal/NN
,/,
''/''
she/PRP
said/VBD
./.
``/``
I/PRP
think/VBP
this/DT
is/VBZ
a/DT
market/NN
that/IN
required/VBD
some/DT
level/NN
of/IN
security/NN
./.
It/PRP
did/VBD
not/RB
make/VB
sense/NN
to/TO
offer/VB
unsecured/JJ
paper/NN
in/IN
an/DT
unsettling/JJ
market/NN
./.
''/''
Investors/NNS
have/VBP
been/VBN
speculating/VBG
for/IN
weeks/NNS
about/IN
the/DT
market/NN
's/POS
ability/NN
to/TO
place/VB
the/DT
$/$
7/CD
billion/CD
to/TO
$/$
10/CD
billion/CD
of/IN
new/JJ
junk/NN
bonds/NNS
scheduled/VBN
to/TO
be/VB
sold/VBN
by/IN
year/NN
end/NN
./.
Supply/NN
troubles/NNS
were/VBD
also/RB
on/IN
the/DT
minds/NNS
of/IN
Treasury/NNP
investors/NNS
yesterday/RB
,/,
who/WP
worried/VBD
about/IN
the/DT
flood/NN
of/IN
new/JJ
government/NN
securities/NNS
coming/VBG
next/JJ
week/NN
./.
``/``
We/PRP
're/VBP
being/VBG
bombarded/VBN
by/IN
new/JJ
Treasury/NNP
and/CC
agency/NN
debt/NN
offerings/NNS
,/,
''/''
said/VBD
William/NNP
Sullivan/NNP
Jr./NNP
,/,
director/NN
of/IN
money-market/NN
research/NN
at/IN
Dean/NNP
Witter/NNP
Reynolds/NNP
Inc/NNP
./.
``/``
The/DT
market/NN
is/VBZ
concerned/JJ
about/IN
its/PRP$
ability/NN
to/TO
underwrite/VB
all/PDT
this/DT
debt/NN
at/IN
current/JJ
levels/NNS
./.
''/''
In/IN
addition/NN
to/TO
the/DT
$/$
15.6/CD
billion/CD
of/IN
Treasury/NNP
bills/NNS
to/TO
be/VB
sold/VBN
at/IN
next/JJ
week/NN
's/POS
regular/JJ
Monday/NNP
auction/NN
,/,
the/DT
government/NN
will/MD
sell/VB
$/$
10/CD
billion/CD
of/IN
new/JJ
two-year/JJ
Treasury/NNP
notes/NNS
./.
And/CC
Resolution/NNP
Funding/NNP
Corp./NNP
said/VBD
late/JJ
yesterday/NN
that/IN
it/PRP
will/MD
sell/VB
$/$
4.5/CD
billion/CD
of/IN
30-year/JJ
bonds/NNS
Wednesday/NNP
./.
Refcorp/NNP
is/VBZ
the/DT
financing/VBG
unit/NN
of/IN
Resolution/NNP
Trust/NNP
Corp./NNP
,/,
a/DT
new/JJ
government/NN
agency/NN
created/VBN
to/TO
rescue/VB
the/DT
nation/NN
's/POS
troubled/JJ
thrifts/NNS
./.
Its/PRP$
securities/NNS
have/VBP
been/VBN
dubbed/VBN
``/``
bailout/NN
bonds/NNS
''/''
by/IN
traders/NNS
./.
In/IN
when-issued/JJ
trading/NN
,/,
the/DT
two-year/JJ
Treasurys/NNPS
had/VBD
a/DT
yield/NN
of/IN
about/IN
7.88/CD
%/NN
./.
In/IN
the/DT
municipal/JJ
market/NN
,/,
all/DT
eyes/NNS
were/VBD
on/IN
California/NNP
debt/NN
as/IN
investors/NNS
tried/VBD
to/TO
gauge/VB
the/DT
financial/JJ
ramifications/NNS
of/IN
Tuesday/NNP
's/POS
earthquake/NN
./.
But/CC
traders/NNS
said/VBD
the/DT
quake/NN
had/VBD
only/RB
a/DT
minor/JJ
impact/NN
on/IN
the/DT
trading/NN
of/IN
California/NNP
state/NN
and/CC
local/JJ
municipal/JJ
debt/NN
./.
``/``
There/EX
are/VBP
certain/JJ
bonds/NNS
traders/NNS
refer/VBP
to/TO
as/IN
`/``
earthquake/NN
'/''
bonds/NNS
because/IN
the/DT
issuers/NNS
top/NN
of/IN
the/DT
San/NNP
Andreas/NNP
fault/NN
,/,
''/''
said/VBD
Zane/NNP
Mann/NNP
,/,
editor/NN
of/IN
the/DT
California/NNP
Municipal/NNP
Bond/NNP
Advisor/NNP
,/,
a/DT
newsletter/NN
for/IN
investors/NNS
./.
Since/IN
those/DT
bonds/NNS
already/RB
pay/VB
a/DT
slightly/RB
higher/JJR
yield/NN
,/,
an/DT
extra/JJ
premium/NN
for/IN
the/DT
earthquake/NN
risk/NN
,/,
they/PRP
were/VBD
n't/RB
materially/RB
affected/JJ
./.
But/CC
some/DT
bond/NN
market/NN
analysts/NNS
said/VBD
that/DT
could/MD
quickly/RB
change/VB
if/IN
property/NN
casualty/NN
insurance/NN
companies/NNS
scramble/VBP
to/TO
sell/VB
portions/NNS
of/IN
their/PRP$
municipal/JJ
portfolios/NNS
to/TO
raise/VB
cash/NN
to/TO
pay/VB
damage/NN
claims/NNS
./.
``/``
Insurance/NN
companies/NNS
will/MD
foot/VB
a/DT
substantial/JJ
amount/NN
of/IN
the/DT
bill/NN
to/TO
reconstruct/VB
San/NNP
Francisco/NNP
,/,
''/''
said/VBD
Charles/NNP
Lieberman/NNP
,/,
chief/JJ
economist/NN
at/IN
Manufacturers/NNPS
Hanover/NNP
Securities/NNPS
Corp/NNP
./.
He/PRP
also/RB
expects/VBZ
the/DT
performance/NN
of/IN
municipals/NNS
to/TO
lag/VB
Treasurys/NNPS
as/IN
California/NNP
is/VBZ
forced/VBN
to/TO
issue/VB
new/JJ
debt/NN
over/IN
time/NN
to/TO
repair/VB
public/JJ
facilities/NNS
./.
A/DT
report/NN
issued/VBN
late/JJ
yesterday/NN
by/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NN
concluded/VBD
the/DT
quake/NN
wo/MD
n't/RB
cause/VB
``/``
wide-scale/JJ
credit/NN
deterioration/NN
''/''
for/IN
issuers/NNS
and/CC
debt/NN
issues/NNS
in/IN
the/DT
12-county/JJ
area/NN
of/IN
Northern/JJ
California/NNP
affected/VBN
by/IN
the/DT
quake/NN
./.
Treasury/NNP
Securities/NNS
Treasury/NNP
bonds/NNS
ended/VBN
narrowly/RB
mixed/JJ
in/IN
quiet/JJ
trading/NN
./.
The/DT
benchmark/JJ
30-year/JJ
bond/NN
ended/VBN
at/IN
a/DT
price/NN
of/IN
100/CD
29\/32/CD
to/TO
yield/VB
8.03/CD
%/NN
,/,
compared/VBN
with/IN
100/CD
28\/32/CD
to/TO
yield/VB
8.04/CD
%/NN
Tuesday/NNP
./.
The/DT
latest/JJS
10-year/JJ
notes/NNS
were/VBD
quoted/VBN
late/RB
at/IN
a/DT
price/NN
of/IN
99/CD
26\/32/CD
to/TO
yield/VB
8/CD
%/NN
,/,
compared/VBN
with/IN
99/CD
25\/32/CD
to/TO
yield/VB
8.01/CD
%/NN
./.
Short-term/JJ
rates/NNS
were/VBD
little/RB
changed/JJ
./.
Corporate/JJ
Issues/NNS
Investment-grade/JJ
corporate/JJ
bonds/NNS
ended/VBN
1\/4/CD
point/NN
lower/RBR
./.
The/DT
Continental/NNP
junk/NN
bond/NN
offering/NN
,/,
underwritten/VBN
by/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
,/,
was/VBD
the/DT
only/RB
new/JJ
issue/NN
priced/VBN
yesterday/NN
./.
In/IN
the/DT
four-part/JJ
offering/NN
,/,
the/DT
$/$
71/CD
million/CD
of/IN
secured/JJ
equipment/NN
certificates/NNS
was/VBD
priced/VBN
to/TO
yield/VB
13.75/CD
%/NN
to/TO
15.75/CD
%/NN
./.
Municipals/NNS
Municipal/JJ
bonds/NNS
ended/VBN
about/IN
1\/8/CD
to/TO
3\/8/CD
point/NN
lower/RBR
,/,
hurt/VBN
by/IN
the/DT
circulation/NN
of/IN
two/CD
``/``
bid-wanted/JJ
''/''
lists/NNS
totaling/VBG
$/$
655/CD
million/CD
./.
Chemical/NNP
Securities/NNPS
Inc./NNP
is/VBZ
acting/VBG
as/IN
agent/NN
for/IN
the/DT
seller/NN
./.
Meanwhile/RB
,/,
some/DT
California/NNP
issues/NNS
were/VBD
down/RB
a/DT
touch/RB
more/RBR
than/IN
the/DT
broad/JJ
market/NN
,/,
but/CC
traders/NNS
said/VBD
there/EX
had/VBD
n't/RB
been/VBN
much/JJ
investor/NN
selling/NN
because/IN
of/IN
the/DT
quake/NN
./.
But/CC
New/NNP
York/NNP
City/NNP
general/JJ
obligation/NN
bonds/NNS
came/VBD
under/IN
selling/NN
pressure/NN
./.
Traders/NNP
said/VBD
a/DT
steady/JJ
stream/NN
of/IN
bonds/NNS
was/VBD
put/VBN
up/RB
for/IN
sale/NN
yesterday/NN
,/,
pushing/VBG
yields/NNS
for/IN
longer/JJR
maturities/NNS
up/RB
0.05/CD
percentage/NN
point/NN
./.
Traders/NNP
said/VBD
investors/NNS
were/VBD
reacting/VBG
to/TO
recent/JJ
negative/JJ
news/NN
on/IN
the/DT
city/NN
's/POS
finances/NNS
and/CC
are/VBP
nervous/JJ
ahead/RB
of/IN
the/DT
Nov./NNP
7/CD
election/NN
./.
Washington/NNP
,/,
D.C./NNP
,/,
topped/VBD
the/DT
competitive/JJ
slate/NN
yesterday/NN
with/IN
a/DT
sale/NN
of/IN
$/$
200/CD
million/CD
of/IN
general/JJ
obligation/NN
tax/NN
revenue/NN
anticipation/NN
notes/NNS
./.
In/IN
late/JJ
trading/NN
,/,
New/NNP
Jersey/NNP
Turnpike/NNP
Authority/NNP
's/POS
7.20/CD
%/NN
issue/NN
of/IN
2018/CD
was/VBD
off/RB
1\/4/CD
point/NN
at/IN
98/CD
bid/NN
./.
The/DT
yield/NN
was/VBD
7.35/CD
%/NN
,/,
up/RB
0.01/CD
percentage/NN
point/NN
./.
Mortgage-Backed/JJ
Securities/NNS
Mortgage/NN
securities/NNS
ended/VBN
little/RB
changed/JJ
after/IN
light/JJ
dealings/NNS
./.
There/EX
was/VBD
no/DT
appreciable/JJ
market/NN
impact/NN
from/IN
the/DT
California/NNP
earthquake/NN
./.
Dealers/NNS
said/VBD
there/EX
was/VBD
some/DT
concern/NN
that/IN
insurance/NN
companies/NNS
might/MD
be/VB
forced/VBN
to/TO
sell/VB
mortgage/NN
securities/NNS
to/TO
help/VB
pay/VB
earthquake-related/JJ
claims/NNS
,/,
but/CC
no/DT
selling/NN
materialized/VBN
./.
The/DT
Federal/NNP
Home/NNP
Loan/NNP
Mortgage/NNP
Corp./NNP
and/CC
Federal/NNP
National/NNP
Mortgage/NNP
Association/NNP
,/,
two/CD
dominant/JJ
issuers/NNS
of/IN
mortgage/NN
securities/NNS
,/,
have/VBP
a/DT
sizable/JJ
amount/NN
of/IN
California/NNP
home/NN
loans/NNS
in/IN
their/PRP$
mortgagebacked/JJ
pools/NNS
./.
But/CC
their/PRP$
potential/JJ
quake/NN
exposure/NN
is/VBZ
seen/VBN
as/IN
small/JJ
given/VBN
that/IN
they/PRP
require/VBP
a/DT
financial/JJ
cushion/NN
on/IN
all/PDT
the/DT
loans/NNS
they/PRP
purchase/VBP
./.
And/CC
because/IN
Northern/JJ
California/NNP
home/NN
prices/NNS
are/VBP
so/RB
high/JJ
,/,
loans/NNS
from/IN
the/DT
region/NN
often/RB
are/VBP
too/RB
large/JJ
to/TO
be/VB
included/VBN
in/IN
Freddie/NNP
Mac/NNP
and/CC
Fannie/NNP
Mae/NNP
pools/NNS
./.
Meanwhile/RB
,/,
Government/NNP
National/NNP
Mortgage/NNP
Association/NNP
9/CD
%/NN
securities/NNS
for/IN
November/NNP
delivery/NN
ended/VBN
at/IN
97/CD
29\/32/CD
,/,
unchanged/JJ
./.
Freddie/NNP
Mac/NNP
9/CD
%/NN
securities/NNS
were/VBD
at/IN
97/CD
4\/32/CD
,/,
down/RB
1\/32/CD
./.
In/IN
derivative/JJ
markets/NNS
,/,
Fannie/NNP
Mae/NNP
issued/VBD
two/CD
$/$
400/CD
million/CD
real/JJ
estate/NN
mortgage/NN
investment/NN
conduits/NNS
backed/VBN
by/IN
its/PRP$
9/CD
%/NN
securities/NNS
./.
Foreign/JJ
Bonds/NNS
British/JJ
government/NN
bonds/NNS
,/,
or/CC
gilts/NNS
,/,
ended/VBN
moderately/RB
lower/RBR
as/IN
equities/NNS
there/RB
recovered/VBD
from/IN
Tuesday/NNP
's/POS
drop/NN
./.
The/DT
Treasury/NNP
's/POS
11/CD
3\/4/CD
%/NN
bond/NN
due/JJ
2003\/2007/CD
fell/VBD
11\/32/CD
to/TO
111/CD
31\/32/CD
to/TO
yield/VB
10.08/CD
%/NN
,/,
while/IN
the/DT
12/CD
%/NN
notes/NNS
due/JJ
1995/CD
were/VBD
down/RB
7\/32/CD
to/TO
103/CD
22\/32/CD
to/TO
yield/VB
11.04/CD
%/NN
./.
Traders/NNS
said/VBD
today/NN
may/MD
be/VB
an/DT
anxious/JJ
day/NN
for/IN
the/DT
market/NN
./.
Several/JJ
key/JJ
economic/JJ
figures/NNS
are/VBP
due/JJ
out/IN
and/CC
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
Nigel/NNP
Lawson/NNP
is/VBZ
scheduled/VBN
to/TO
give/VB
the/DT
annual/JJ
``/``
Mansion/NNP
House/NNP
''/''
address/NN
to/TO
the/DT
financial/JJ
community/NN
./.
The/DT
chancellor/NN
sometimes/RB
has/VBZ
used/VBN
the/DT
occasion/NN
to/TO
announce/VB
major/JJ
economic/JJ
policy/NN
changes/NNS
./.
Economists/NNS
do/VBP
n't/RB
expect/VB
any/DT
such/JJ
changes/NNS
in/IN
this/DT
year/NN
's/POS
address/NN
,/,
given/VBN
Mr./NNP
Lawson/NNP
's/POS
apparent/JJ
reluctance/NN
to/TO
adjust/VB
policy/NN
currently/RB
./.
Meanwhile/RB
,/,
Japanese/JJ
government/NN
bonds/NNS
retreated/VBD
in/IN
quiet/JJ
trading/NN
,/,
stymied/VBN
by/IN
the/DT
dollar/NN
's/POS
resiliency/NN
./.
Japan/NNP
's/POS
bellwether/NN
4.6/CD
%/NN
bond/NN
due/JJ
1998/CD
ended/VBN
on/IN
brokers/NNS
'/POS
screens/NNS
at/IN
95.75/CD
to/TO
yield/VB
5.315/CD
%/NN
./.
In/IN
West/NNP
Germany/NNP
,/,
investors/NNS
stayed/VBD
on/IN
the/DT
sidelines/NNS
as/IN
the/DT
bond/NN
market/NN
searched/VBD
for/IN
direction/NN
./.
The/DT
government/NN
's/POS
7/CD
%/NN
issue/NN
due/JJ
October/NNP
1999/CD
fell/VBD
0.05/CD
point/NN
to/TO
99.90/CD
to/TO
yield/VB
7.01/CD
%/NN
./.
The/DT
Berlin/NNP
Wall/NNP
still/RB
stands/VBZ
./.
But/CC
the/DT
man/NN
who/WP
built/VBD
it/PRP
has/VBZ
fallen/VBN
./.
East/NNP
Germany/NNP
yesterday/NN
removed/VBD
Erich/NNP
Honecker/NNP
,/,
one/CD
of/IN
the/DT
staunchest/JJS
holdouts/NNS
against/IN
the/DT
reform/NN
rumbling/VBG
through/IN
the/DT
Communist/JJ
world/NN
,/,
in/IN
an/DT
effort/NN
to/TO
win/VB
back/RB
the/DT
confidence/NN
of/IN
its/PRP$
increasingly/RB
rebellious/JJ
citizens/NNS
./.
But/CC
while/IN
it/PRP
was/VBD
a/DT
move/NN
that/WDT
stunned/VBD
the/DT
East/NNP
bloc/NN
,/,
it/PRP
hardly/RB
ushers/VBZ
in/RB
an/DT
era/NN
of/IN
reform/NN
--/:
at/IN
least/JJS
anytime/RB
soon/RB
./.
For/IN
the/DT
Politburo/NNP
replaced/VBD
Mr./NNP
Honecker/NNP
,/,
who/WP
had/VBD
led/VBN
East/NNP
Germany/NNP
for/IN
18/CD
years/NNS
and/CC
before/IN
that/DT
headed/VBD
its/PRP$
security/NN
apparatus/NN
,/,
with/IN
a/DT
man/NN
cut/VBN
of/IN
the/DT
same/JJ
cloth/NN
:/:
Egon/NNP
Krenz/NNP
,/,
the/DT
most/RBS
recent/JJ
internal-security/NN
chief/NN
and/CC
a/DT
longtime/NN
Honecker/NNP
protege/NN
./.
East/NNP
Germany/NNP
,/,
it/PRP
is/VBZ
clear/JJ
,/,
is/VBZ
no/DT
Poland/NNP
,/,
where/WRB
the/DT
Communist/NNP
Party/NNP
now/RB
shares/VBZ
power/NN
with/IN
the/DT
democratically/RB
elected/JJ
Solidarity/NNP
union/NN
./.
Nor/CC
is/VBZ
it/PRP
a/DT
Hungary/NNP
,/,
where/WRB
yesterday/NN
the/DT
parliament/NN
approved/VBD
constitutional/JJ
changes/NNS
meant/VBD
to/TO
help/VB
turn/VB
the/DT
Communist/JJ
nation/NN
into/IN
a/DT
multiparty/JJ
democracy/NN
./.
Still/RB
,/,
any/DT
change/NN
in/IN
East/NNP
Germany/NNP
has/VBZ
enormous/JJ
implications/NNS
,/,
for/IN
both/DT
East/NNP
and/CC
West/NNP
./.
It/PRP
raises/VBZ
the/DT
long-cherished/JJ
hopes/NNS
of/IN
many/JJ
Germans/NNPS
for/IN
reunification/NN
--/:
a/DT
prospect/NN
that/IN
almost/RB
equally/RB
alarms/VBZ
political/JJ
leaders/NNS
in/IN
Moscow/NNP
,/,
Washington/NNP
and/CC
Western/NNP
Europe/NNP
./.
Mr./NNP
Krenz/NNP
,/,
52/CD
,/,
was/VBD
named/VBN
the/DT
new/JJ
party/NN
chief/NN
just/RB
minutes/NNS
after/IN
the/DT
Party/NNP
's/POS
163-member/JJ
Central/NNP
Committee/NNP
convened/VBD
in/IN
East/NNP
Berlin/NNP
./.
Although/IN
the/DT
East/JJ
German/JJ
news/NN
agency/NN
ADN/NNP
claimed/VBD
Mr./NNP
Honecker/NNP
had/VBD
asked/VBN
to/TO
be/VB
relieved/VBN
of/IN
his/PRP$
duties/NNS
for/IN
``/``
health/NN
reasons/NNS
,/,
''/''
West/JJ
German/JJ
government/NN
sources/NNS
said/VBD
the/DT
26-man/JJ
Politburo/NNP
had/VBD
asked/VBN
for/IN
his/PRP$
resignation/NN
at/IN
a/DT
separate/JJ
meeting/NN
late/JJ
Tuesday/NNP
./.
Mr./NNP
Honecker/NNP
was/VBD
twice/RB
hospitalized/VBN
this/DT
summer/NN
for/IN
a/DT
gall/NN
bladder/NN
ailment/NN
and/CC
his/PRP$
physical/JJ
condition/NN
has/VBZ
been/VBN
the/DT
subject/NN
of/IN
intense/JJ
speculation/NN
in/IN
the/DT
Western/JJ
media/NNS
./.
ADN/NNP
said/VBD
Mr./NNP
Honecker/NNP
,/,
a/DT
hard-line/JJ
Stalinist/NNP
who/WP
in/IN
1961/CD
supervised/VBD
the/DT
construction/NN
of/IN
the/DT
Berlin/NNP
Wall/NNP
,/,
also/RB
was/VBD
relieved/VBN
of/IN
his/PRP$
title/NN
as/IN
head/NN
of/IN
state/NN
and/CC
his/PRP$
position/NN
as/IN
chief/JJ
of/IN
the/DT
military/NN
./.
Mr./NNP
Krenz/NNP
is/VBZ
expected/VBN
to/TO
be/VB
formally/RB
named/VBN
to/TO
all/DT
three/CD
positions/NNS
once/IN
the/DT
nation/NN
's/POS
parliament/NN
convenes/VBZ
later/RB
this/DT
week/NN
./.
Mr./NNP
Honecker/NNP
's/POS
ignoble/JJ
fall/NN
culminates/VBZ
nearly/RB
two/CD
decades/NNS
of/IN
iron-handed/JJ
leadership/NN
during/IN
which/WDT
Mr./NNP
Honecker/NNP
,/,
now/RB
77/CD
years/NNS
old/JJ
,/,
built/VBD
East/NNP
Germany/NNP
into/IN
the/DT
most/RBS
economically/RB
advanced/JJ
nation/NN
in/IN
the/DT
Soviet/NNP
bloc/NN
./.
His/PRP$
grip/NN
on/IN
power/NN
unraveled/VBN
this/DT
summer/NN
as/IN
thousands/NNS
of/IN
his/PRP$
countrymen/NNS
,/,
dissatisfied/VBN
by/IN
the/DT
harshness/NN
of/IN
his/PRP$
rule/NN
,/,
fled/VBD
to/TO
the/DT
West/NNP
./.
Thousands/NNS
more/JJR
have/VBP
taken/VBN
to/TO
the/DT
streets/NNS
in/IN
the/DT
last/JJ
month/NN
in/IN
East/NNP
Germany/NNP
's/POS
largest/JJS
wave/NN
of/IN
domestic/JJ
unrest/NN
since/IN
a/DT
workers/NNS
'/POS
uprising/NN
in/IN
1953/CD
./.
In/IN
Washington/NNP
,/,
the/DT
Bush/NNP
administration/NN
took/VBD
a/DT
characteristically/RB
cautious/JJ
and/CC
skeptical/JJ
view/NN
of/IN
the/DT
leadership/NN
change/NN
./.
The/DT
official/JJ
line/NN
was/VBD
to/TO
offer/VB
warmer/JJR
ties/NNS
to/TO
Mr./NNP
Krenz/NNP
,/,
provided/VBN
he/PRP
is/VBZ
willing/JJ
to/TO
institute/VB
reforms/NNS
./.
But/CC
U.S./NNP
officials/NNS
have/VBP
strong/JJ
doubts/NNS
that/IN
he/PRP
is/VBZ
a/DT
reformer/NN
./.
President/NNP
Bush/NNP
told/VBD
reporters/NNS
:/:
``/``
Whether/IN
that/DT
the/DT
leadership/NN
change/NN
a/DT
change/NN
in/IN
East-West/JJ
relations/NNS
,/,
I/PRP
do/VBP
n't/RB
think/VB
so/RB
./.
Because/IN
Mr./NNP
Krenz/NNP
has/VBZ
been/VBN
very/RB
much/JJ
in/IN
accord/NN
with/IN
the/DT
policies/NNS
of/IN
Honecker/NNP
./.
''/''
One/CD
top/JJ
U.S./NNP
expert/NN
on/IN
East/NNP
Germany/NNP
added/VBD
:/:
``/``
There/EX
is/VBZ
no/DT
clear-cut/JJ
champion/NN
of/IN
reform/NN
,/,
that/IN
we/PRP
know/VBP
of/IN
,/,
in/IN
the/DT
East/JJ
German/JJ
leadership/NN
./.
''/''
Indeed/RB
,/,
Mr./NNP
Krenz/NNP
said/VBD
on/IN
East/JJ
German/JJ
television/NN
last/JJ
night/NN
that/IN
there/EX
will/MD
be/VB
no/DT
sharing/NN
of/IN
power/NN
with/IN
pro-democracy/JJ
groups/NNS
./.
He/PRP
said/VBD
,/,
while/IN
dialogue/NN
is/VBZ
important/JJ
,/,
enough/JJ
forums/NNS
already/RB
exist/VBP
``/``
in/IN
which/WDT
different/JJ
interests/NNS
''/''
can/MD
express/VB
themselves/PRP
./.
The/DT
removal/NN
of/IN
Mr./NNP
Honecker/NNP
was/VBD
apparently/RB
the/DT
result/NN
of/IN
bitter/JJ
infighting/NN
within/IN
the/DT
top/JJ
ranks/NNS
of/IN
the/DT
Communist/JJ
party/NN
./.
According/VBG
to/TO
West/JJ
German/JJ
government/NN
sources/NNS
,/,
Mr./NNP
Honecker/NNP
and/CC
several/JJ
senior/JJ
Politburo/NNP
members/NNS
fought/VBD
over/IN
the/DT
last/JJ
week/NN
to/TO
delay/VB
any/DT
decisions/NNS
about/IN
a/DT
leadership/NN
change/NN
./.
But/CC
,/,
with/IN
public/JJ
demonstrations/NNS
in/IN
the/DT
country/NN
growing/VBG
in/IN
size/NN
and/CC
intensity/NN
,/,
Mr./NNP
Honecker/NNP
and/CC
several/JJ
key/JJ
allies/NNS
lost/VBD
out/RB
in/IN
this/DT
battle/NN
,/,
officials/NNS
say/VBP
./.
Those/DT
allies/NNS
included/VBD
Politburo/NNP
members/NNS
Guenter/NNP
Mittag/NNP
,/,
who/WP
has/VBZ
long/RB
headed/VBN
economic/JJ
affairs/NNS
,/,
and/CC
Joachim/NNP
Hermann/NNP
,/,
chief/NN
of/IN
information/NN
policy/NN
./.
Both/DT
men/NNS
were/VBD
also/RB
relieved/VBN
of/IN
their/PRP$
duties/NNS
yesterday/NN
./.
Although/IN
other/JJ
resignations/NNS
may/MD
follow/VB
,/,
it/PRP
's/VBZ
still/RB
not/RB
clear/JJ
to/TO
what/WDT
extent/NN
the/DT
change/NN
in/IN
party/NN
personnel/NNS
will/MD
alter/VB
the/DT
government/NN
's/POS
resistance/NN
to/TO
fundamental/JJ
change/NN
./.
Clearly/RB
,/,
the/DT
central/JJ
figure/NN
in/IN
this/DT
process/NN
is/VBZ
Egon/NNP
Krenz/NNP
./.
Born/VBN
in/IN
1937/CD
in/IN
a/DT
Baltic/NNP
Sea/NNP
town/NN
now/RB
part/NN
of/IN
Poland/NNP
,/,
he/PRP
was/VBD
eight/CD
years/NNS
old/JJ
when/WRB
World/NNP
War/NNP
II/NNP
ended/VBN
./.
Like/IN
West/JJ
German/JJ
Chancellor/NNP
Helmut/NNP
Kohl/NNP
,/,
he/PRP
represents/VBZ
the/DT
postwar/JJ
generation/NN
that/WDT
has/VBZ
grown/VBN
up/RB
during/IN
Germany/NNP
's/POS
division/NN
./.
Since/IN
joining/VBG
the/DT
Politburo/NNP
in/IN
1983/CD
as/IN
its/PRP$
youngest/JJS
member/NN
,/,
Mr./NNP
Krenz/NNP
had/VBD
acquired/VBN
the/DT
nickname/NN
``/``
crown/NN
prince/NN
,/,
''/''
a/DT
reference/NN
to/TO
the/DT
widely/RB
held/JJ
view/NN
that/IN
he/PRP
was/VBD
the/DT
hand-picked/JJ
successor/NN
to/TO
Mr./NNP
Honecker/NNP
./.
In/IN
fact/NN
,/,
the/DT
two/CD
men/NNS
have/VBP
had/VBN
strikingly/RB
similar/JJ
career/NN
paths/NNS
,/,
both/DT
having/VBG
served/VBN
as/IN
chief/JJ
of/IN
internal/JJ
security/NN
before/IN
their/PRP$
rise/NN
to/TO
the/DT
top/JJ
party/NN
position/NN
./.
Moreover/RB
,/,
both/DT
men/NNS
have/VBP
hewn/VBN
to/TO
a/DT
similar/JJ
hard-line/JJ
philosophy/NN
./.
Notably/RB
,/,
one/CD
of/IN
Mr./NNP
Krenz/NNP
's/POS
few/JJ
official/JJ
visits/NNS
overseas/RB
came/VBD
a/DT
few/JJ
months/NNS
ago/RB
,/,
when/WRB
he/PRP
visited/VBD
China/NNP
after/IN
the/DT
massacre/NN
in/IN
Beijing/NNP
./.
He/PRP
later/RB
defended/VBD
the/DT
Chinese/JJ
government/NN
's/POS
response/NN
during/IN
a/DT
separate/JJ
visit/NN
to/TO
West/NNP
Germany/NNP
./.
East/JJ
German/JJ
Protestantism/NNP
in/IN
particular/JJ
fears/VBZ
Mr./NNP
Krenz/NNP
,/,
in/IN
part/NN
because/IN
of/IN
an/DT
incident/NN
in/IN
January/NNP
1988/CD
when/WRB
he/PRP
was/VBD
believed/VBN
to/TO
have/VB
ordered/VBN
the/DT
arrest/NN
of/IN
hundreds/NNS
of/IN
dissidents/NNS
who/WP
had/VBD
sought/VBN
refuge/NN
in/IN
the/DT
Church/NNP
./.
However/RB
,/,
Mr./NNP
Krenz/NNP
also/RB
has/VBZ
a/DT
reputation/NN
for/IN
being/VBG
politically/RB
savvy/JJ
./.
His/PRP$
shrewd/JJ
ability/NN
to/TO
read/VB
the/DT
shifting/VBG
popular/JJ
mood/NN
in/IN
East/NNP
Germany/NNP
is/VBZ
best/RBS
illustrated/VBN
by/IN
his/PRP$
apparent/JJ
break/NN
with/IN
his/PRP$
old/JJ
mentor/NN
,/,
Mr./NNP
Honecker/NNP
./.
Indeed/RB
,/,
according/VBG
to/TO
West/JJ
German/JJ
government/NN
sources/NNS
,/,
he/PRP
was/VBD
one/CD
of/IN
the/DT
leaders/NNS
in/IN
the/DT
power/NN
struggle/NN
that/WDT
toppled/VBD
Mr./NNP
Honecker/NNP
./.
In/IN
recent/JJ
days/NNS
,/,
Mr./NNP
Krenz/NNP
has/VBZ
sought/VBN
to/TO
project/VB
a/DT
kinder/JJR
image/NN
./.
According/VBG
to/TO
a/DT
report/NN
widely/RB
circulating/VBG
in/IN
East/NNP
Berlin/NNP
,/,
it/PRP
was/VBD
Mr./NNP
Krenz/NNP
who/WP
ordered/VBD
police/NNS
to/TO
stop/VB
using/VBG
excessive/JJ
force/NN
against/IN
demonstrators/NNS
in/IN
Leipzig/NNP
./.
``/``
He/PRP
does/VBZ
n't/RB
want/VB
to/TO
have/VB
the/DT
image/NN
of/IN
the/DT
gun/NN
man/NN
,/,
''/''
says/VBZ
Fred/NNP
Oldenburg/NNP
,/,
an/DT
expert/NN
at/IN
the/DT
Bonn-sponsored/NNP

Institute/NNP
of/IN
East/NNP
European/NNP
and/CC
International/NNP
Studies/NNPS
in/IN
Cologne/NNP
./.
``/``
He/PRP
's/VBZ
not/RB
a/DT
reformer/NN
--/:
he/PRP
wants/VBZ
to/TO
have/VB
the/DT
image/NN
of/IN
a/DT
reformer/NN
./.
''/''
As/IN
part/NN
of/IN
his/PRP$
image/NN
polishing/NN
,/,
Mr./NNP
Krenz/NNP
is/VBZ
expected/VBN
to/TO
take/VB
modest/JJ
steps/NNS
toward/IN
reform/NN
to/TO
rebuild/VB
confidence/NN
among/IN
the/DT
people/NNS
and/CC
reassert/VB
the/DT
party/NN
's/POS
authority/NN
./.
Besides/IN
sacking/VBG
other/JJ
senior/JJ
Politburo/NNP
officials/NNS
who/WP
allied/VBD
themselves/PRP
with/IN
Mr./NNP
Honecker/NNP
,/,
Mr./NNP
Krenz/NNP
could/MD
loosen/VB
controls/NNS
on/IN
the/DT
news/NN
media/NNS
,/,
free/JJ
up/RP
travel/NN
restrictions/NNS
,/,
and/CC
establish/VB
a/DT
dialogue/NN
with/IN
various/JJ
dissident/JJ
groups/NNS
./.
But/CC
will/MD
it/PRP
be/VB
enough/RB
?/.
West/JJ
German/JJ
government/NN
officials/NNS
and/CC
Western/JJ
analysts/NNS
are/VBP
doubtful/JJ
./.
``/``
He/PRP
does/VBZ
n't/RB
signify/VB
what/WP
people/NNS
want/VBP
,/,
so/CC
the/DT
unrest/NN
will/MD
go/VB
on/RB
,/,
''/''
Mr./NNP
Oldenburg/NNP
predicts/VBZ
./.
At/IN
the/DT
same/JJ
time/NN
,/,
the/DT
expectations/NNS
of/IN
the/DT
East/JJ
German/JJ
people/NNS
are/VBP
great/JJ
and/CC
will/MD
continue/VB
to/TO
grow/VB
./.
Says/VBZ
one/CD
West/JJ
German/JJ
official/NN
:/:
``/``
What/WP
's/VBZ
necessary/JJ
now/RB
is/VBZ
the/DT
process/NN
of/IN
democratization/NN
./.
Not/RB
just/RB
that/IN
people/NNS
are/VBP
being/VBG
heard/VBN
but/CC
that/IN
their/PRP$
interests/NNS
are/VBP
being/VBG
taken/VBN
seriously/RB
./.
''/''
Chancellor/NNP
Kohl/NNP
,/,
meanwhile/RB
,/,
has/VBZ
invited/VBN
Mr./NNP
Krenz/NNP
to/TO
open/VB
discussions/NNS
with/IN
Bonn/NNP
on/IN
a/DT
wide/JJ
range/NN
of/IN
subjects/NNS
./.
Reports/NNS
in/IN
the/DT
West/JJ
German/JJ
press/NN
,/,
citing/VBG
sources/NNS
in/IN
East/NNP
Germany/NNP
,/,
suggest/VBP
Mr./NNP
Krenz/NNP
may/MD
serve/VB
only/RB
as/IN
a/DT
bridge/NN
between/IN
Mr./NNP
Honecker/NNP
and/CC
a/DT
genuine/JJ
reform/NN
leader/NN
./.
Adding/VBG
to/TO
that/DT
speculation/NN
is/VBZ
Mr./NNP
Krenz/NNP
's/POS
reputation/NN
as/IN
a/DT
heavy/JJ
drinker/NN
,/,
who/WP
is/VBZ
said/VBD
to/TO
also/RB
suffer/VB
from/IN
diabetes/NN
./.
``/``
This/DT
is/VBZ
a/DT
dynamic/JJ
process/NN
and/CC
we/PRP
're/VBP
experiencing/VBG
the/DT
first/JJ
step/NN
,/,
''/''
the/DT
Bonn/NNP
official/NN
adds/VBZ
./.
The/DT
selection/NN
of/IN
Mr./NNP
Krenz/NNP
may/MD
also/RB
disappoint/VB
Moscow/NNP
./.
Soviet/JJ
leader/NN
Mikhail/NNP
Gorbachev/NNP
has/VBZ
pressed/VBN
hard/RB
for/IN
a/DT
change/NN
in/IN
East/NNP
Germany/NNP
's/POS
rigid/JJ
stance/NN
./.
Two/CD
reform-minded/JJ
party/NN
leaders/NNS
favored/VBN
by/IN
Moscow/NNP
as/IN
possible/JJ
successors/NNS
to/TO
Mr./NNP
Honecker/NNP
,/,
Dresden/NNP
party/NN
secretary/NN
Hans/NNP
Modrow/NNP
and/CC
Politburo/NNP
member/NN
Guenter/NNP
Schabowski/NNP
,/,
were/VBD
passed/VBN
over/RB
./.
If/IN
Mr./NNP
Krenz/NNP
sticks/VBZ
to/TO
rigid/JJ
policies/NNS
the/DT
pressure/NN
from/IN
the/DT
Soviet/NNP
Union/NNP
could/MD
intensify/VB
./.
In/IN
Moscow/NNP
,/,
Mr./NNP
Gorbachev/NNP
sent/VBD
Mr./NNP
Krenz/NNP
a/DT
congratulatory/JJ
telegram/NN
that/WDT
appeared/VBD
to/TO
urge/VB
the/DT
new/JJ
leadership/NN
to/TO
heed/VB
growing/VBG
calls/NNS
for/IN
change/NN
./.
According/VBG
to/TO
the/DT
Soviet/JJ
news/NN
agency/NN
Tass/NNP
,/,
``/``
Gorbachev/NNP
expressed/VBD
the/DT
conviction/NN
that/IN
the/DT
leadership/NN
of/IN
the/DT
Socialist/NNP
Unity/NNP
Party/NNP
of/IN
{/(
East/NNP
Germany/NNP
,/,
being/VBG
sensitive/JJ
to/TO
the/DT
demands/NNS
of/IN
the/DT
time/NN
,/,
.../:
will/MD
find/VB
solutions/NNS
to/TO
complicated/JJ
problems/NNS
the/DT
GDR/NNP
German/NNP
Democratic/NNP
Republic/NNP
''/''
A/DT
force/NN
of/IN
younger/JJR
pro-Gorbachev/JJ
members/NNS
in/IN
the/DT
East/JJ
German/JJ
bureaucracy/NN
has/VBZ
for/IN
some/DT
time/NN
been/VBN
pushing/VBG
for/IN
relaxation/NN
within/IN
their/PRP$
country/NN
./.
The/DT
older/JJR
generation/NN
has/VBZ
been/VBN
torn/VBN
between/IN
a/DT
fear/NN
of/IN
tampering/VBG
with/IN
the/DT
status/NN
quo/NN
and/CC
a/DT
fear/NN
of/IN
what/WP
might/MD
happen/VB
if/IN
they/PRP
did/VBD
n't/RB
./.
From/IN
the/DT
perspective/NN
of/IN
East/NNP
Germany/NNP
's/POS
old/JJ
guard/NN
,/,
reforms/NNS
that/WDT
smack/VBP
of/IN
capitalism/NN
and/CC
Western-style/JJ
democracy/NN
could/MD
eliminate/VB
their/PRP$
country/NN
's/POS
reason/NN
for/IN
being/VBG
./.
Unlike/IN
the/DT
other/JJ
nations/NNS
of/IN
the/DT
bloc/NN
,/,
East/NNP
Germany/NNP
is/VBZ
a/DT
creature/NN
of/IN
the/DT
Cold/NNP
War/NNP
./.
Erasing/VBG
the/DT
differences/NNS
still/RB
dividing/VBG
Europe/NNP
,/,
and/CC
the/DT
vast/JJ
international/JJ
reordering/NN
that/DT
implies/VBZ
,/,
wo/MD
n't/RB
endanger/VB
the/DT
statehood/NN
of/IN
a/DT
Poland/NNP
or/CC
a/DT
Hungary/JJ
./.
But/CC
it/PRP
could/MD
ultimately/RB
lead/VB
to/TO
German/JJ
reunification/NN
and/CC
the/DT
disappearance/NN
of/IN
East/NNP
Germany/NNP
from/IN
the/DT
map/NN
./.
Which/WDT
is/VBZ
what/WP
the/DT
Old/JJ
Guard/NN
fears/VBZ
./.
``/``
I/PRP
'm/VBP
sure/JJ
they/PRP
'll/MD
formulate/VB
a/DT
reform/NN
that/WDT
will/MD
be/VB
a/DT
recipe/NN
for/IN
the/DT
GDR/NNP
's/POS
future/NN
as/IN
a/DT
separately/RB
identifiable/JJ
state/NN
,/,
''/''
says/VBZ
Michael/NNP
Simmons/NNP
,/,
a/DT
British/JJ
journalist/NN
whose/WP$
book/NN
on/IN
East/NNP
Germany/NNP
,/,
entitled/VBN
``/``
The/DT
Unloved/NNP
Country/NNP
,/,
''/''
was/VBD
published/VBN
this/DT
month/NN
./.
Up/IN
to/TO
now/RB
,/,
that/IN
recipe/NN
has/VBZ
consisted/VBN
of/IN
a/DT
dogged/JJ
effort/NN
by/IN
former/JJ
leader/NN
Walter/NNP
Ulbricht/NNP
to/TO
establish/VB
the/DT
country/NN
's/POS
international/JJ
legitimacy/NN
,/,
followed/VBN
by/IN
Mr./NNP
Honecker/NNP
's/POS
campaign/NN
to/TO
build/VB
the/DT
East/NNP
bloc/NN
's/POS
only/JJ
successful/JJ
Stalinist/JJ
economy/NN
into/IN
a/DT
consumer/NN
paradise/NN
./.
Neither/DT
man/NN
achieved/VBD
perfection/NN
./.
Early/RB
in/IN
1987/CD
,/,
Mr./NNP
Honecker/NNP
and/CC
his/PRP$
team/NN
stopped/VBD
paying/VBG
thin/JJ
compliments/NNS
to/TO
Mr./NNP
Gorbachev/NNP
and/CC
joined/VBD
with/IN
Romania/NNP
in/IN
rejecting/VBG
any/DT
necessity/NN
for/IN
adjustments/NNS
in/IN
their/PRP$
systems/NNS
./.
The/DT
less-self-confident/JJ
Czechoslovaks/NNPS
and/CC
Bulgarians/NNPS
,/,
in/IN
contrast/NN
,/,
declared/VBD
their/PRP$
intentions/NNS
to/TO
reform/VB
,/,
while/IN
doing/VBG
nothing/NN
concrete/JJ
about/IN
it/PRP
./.
The/DT
East/JJ
German/JJ
media/NNS
soon/RB
began/VBD
presenting/VBG
Mr./NNP
Gorbachev/NNP
's/POS
speeches/NNS
only/RB
as/IN
sketchy/JJ
summaries/NNS
,/,
and/CC
giving/VBG
space/NN
to/TO
his/PRP$
opponents/NNS
./.
By/IN
late/JJ
1988/CD
,/,
they/PRP
were/VBD
banning/VBG
Soviet/JJ
publications/NNS
./.
The/DT
country/NN
abandoned/VBD
its/PRP$
former/JJ
devotion/NN
to/TO
socialist/JJ
unity/NN
and/CC
took/VBD
to/TO
insisting/VBG
instead/RB
that/IN
each/DT
country/NN
in/IN
the/DT
bloc/NN
ought/MD
to/TO
travel/VB
its/PRP$
own/JJ
road/NN
./.
Mr./NNP
Honecker/NNP
spoke/VBD
of/IN
``/``
generally/RB
valid/JJ
objective/JJ
laws/NNS
of/IN
socialism/NN
''/''
and/CC
left/VBD
no/DT
room/NN
for/IN
debate/NN
./.
With/IN
this/DT
year/NN
's/POS
dislocations/NNS
in/IN
China/NNP
and/CC
the/DT
Soviet/NNP
Union/NNP
,/,
and/CC
the/DT
drive/NN
to/TO
democracy/NN
in/IN
Poland/NNP
and/CC
Hungary/NNP
,/,
the/DT
East/JJ
German/JJ
leadership/NN
grew/VBD
still/RB
more/RBR
defensive/JJ
./.
Politburo/NNP
member/NN
Joachim/NNP
Herrman/NNP
confessed/VBD
to/TO
a/DT
``/``
grave/JJ
concern/NN
''/''
over/IN
Hungarian/JJ
democracy/NN
./.
``/``
Under/IN
the/DT
banner/NN
that/WDT
proclaims/VBZ
the/DT
`/``
renewal/NN
of/IN
socialism/NN
,/,
'/''
''/''
he/PRP
said/VBD
,/,
``/``
forces/NNS
are/VBP
at/IN
work/NN
that/WDT
are/VBP
striving/VBG
to/TO
eliminate/VB
socialism/NN
./.
''/''
Some/DT
loyal/JJ
voices/NNS
,/,
in/IN
and/CC
out/IN
of/IN
the/DT
East/JJ
German/JJ
Communist/JJ
party/NN
,/,
saw/VBD
the/DT
nation/NN
's/POS
unrest/NN
coming/VBG
./.
The/DT
first/JJ
signs/NNS
were/VBD
economic/JJ
./.
Despite/IN
heavily/RB
subsidized/JJ
consumer/NN
industries/NNS
,/,
East/NNPS
Germans/NNPS
have/VBP
for/IN
years/NNS
watched/VBN
the/DT
West/NNP
pull/VB
farther/RB
out/RP
ahead/RB
./.
In/IN
1988/CD
,/,
for/IN
the/DT
first/JJ
time/NN
,/,
economic/JJ
growth/NN
came/VBD
to/TO
a/DT
dead/JJ
stop/NN
./.
Gingerly/RB
,/,
some/DT
economists/NNS
began/VBD
to/TO
blame/VB
central/JJ
planning/NN
./.
Some/DT
writers/NNS
in/IN
theoretical/JJ
journals/NNS
even/RB
raised/VBD
the/DT
notion/NN
of/IN
introducing/VBG
democracy/NN
,/,
at/IN
least/JJS
in/IN
the/DT
workplace/NN
./.
By/IN
summer/NN
,/,
an/DT
independent/JJ
reform/NN
movement/NN
was/VBD
saying/VBG
out/RB
loud/RB
what/WP
it/PRP
had/VBD
only/RB
whispered/VBN
before/RB
./.
But/CC
they/PRP
are/VBP
stalwart/JJ
socialists/NNS
./.
Their/PRP$
proclaimed/JJ
purpose/NN
is/VBZ
to/TO
cleanse/VB
East/NNP
Germany/NNP
of/IN
its/PRP$
Stalinist/JJ
muck/NN
,/,
not/RB
to/TO
merge/VB
with/IN
the/DT
West/NNP
./.
One/CD
of/IN
their/PRP$
pastors/NNS
has/VBZ
envisioned/VBN
a/DT
``/``
new/JJ
utopia/NN
''/''
of/IN
``/``
creative/JJ
socialism/NN
./.
''/''
Meanwhile/RB
,/,
the/DT
man/NN
Mr./NNP
Krenz/NNP
replaces/VBZ
has/VBZ
left/VBN
an/DT
indelible/JJ
mark/NN
on/IN
East/JJ
German/JJ
society/NN
./.
Imprisoned/VBN
by/IN
the/DT
Nazis/NNPS
during/IN
World/NNP
War/NNP
II/NNP
for/IN
his/PRP$
political/JJ
beliefs/NNS
,/,
Mr./NNP
Honecker/NNP
typified/VBD
the/DT
postwar/JJ
generation/NN
of/IN
committed/JJ
Communist/JJ
leaders/NNS
in/IN
Eastern/NNP
Europe/NNP
who/WP
took/VBD
their/PRP$
cues/NNS
from/IN
Moscow/NNP
./.
He/PRP
was/VBD
a/DT
``/``
socialist/JJ
warrior/NN
''/''
who/WP
felt/VBD
rankled/VBN
by/IN
West/NNP
Germany/NNP
's/POS
enormous/JJ
postwar/JJ
prosperity/NN
and/CC
the/DT
Bonn/NNP
government/NN
's/POS
steadfast/JJ
refusal/NN
to/TO
recognize/VB
the/DT
legitimacy/NN
of/IN
his/PRP$
state/NN
./.
Finally/RB
,/,
during/IN
his/PRP$
first/JJ
and/CC
only/JJ
state/NN
visit/NN
to/TO
Bonn/NNP
two/CD
years/NNS
ago/RB
,/,
he/PRP
won/VBD
some/DT
measure/NN
of/IN
the/DT
recognition/NN
he/PRP
had/VBD
long/RB
sought/VBN
./.
But/CC
ultimately/RB
he/PRP
was/VBD
undone/VBN
by/IN
forces/NNS
unleashed/VBN
by/IN
his/PRP$
own/JJ
comrade/NN
,/,
Mr./NNP
Gorbachev/NNP
./.
Mr./NNP
Honecker/NNP
's/POS
removal/NN
``/``
was/VBD
bound/VBN
to/TO
happen/VB
,/,
''/''
says/VBZ
one/CD
aide/NN
to/TO
Chancellor/NNP
Kohl/NNP
./.
``/``
It/PRP
was/VBD
only/RB
a/DT
matter/NN
of/IN
time/NN
./.
''/''
The/DT
European/NNP
Community/NNP
Commission/NNP
increased/VBD
its/PRP$
forecast/NN
for/IN
economic/JJ
growth/NN
in/IN
the/DT
EC/NNP
in/IN
1989/CD
to/TO
3.5/CD
%/NN
,/,
slightly/RB
higher/JJR
than/IN
its/PRP$
June/NNP
projection/NN
of/IN
3.25/CD
%/NN
./.
In/IN
its/PRP$
annual/JJ
economic/JJ
report/NN
for/IN
1989-1990/CD
,/,
the/DT
commission/NN
also/RB
projected/VBD
1990/CD
gross/JJ
domestic/JJ
product/NN
growth/NN
for/IN
the/DT
12/CD
EC/NNP
members/NNS
at/IN
3/CD
%/NN
./.
EC/NNP
inflation/NN
was/VBD
seen/VBN
at/IN
4.8/CD
%/NN
in/IN
1989/CD
,/,
higher/JJR
than/IN
1988/CD
's/POS
3.6/CD
%/NN
price/NN
rise/NN
./.
However/RB
,/,
inflation/NN
for/IN
1990/CD
was/VBD
seen/VBN
slowing/VBG
to/TO
4.5/CD
%/NN
./.
Leading/VBG
EC/NNP
growth/NN
forecasts/NNS
in/IN
1989/CD
was/VBD
Ireland/NNP
,/,
seen/VBN
growing/VBG
5/CD
%/NN
at/IN
constant/JJ
prices/NNS
./.
Slower/JJR
growth/NN
countries/NNS
included/VBD
Greece/NNP
,/,
at/IN
2.5/CD
%/NN
,/,
the/DT
U.K./NNP
,/,
at/IN
2.25/CD
%/NN
,/,
and/CC
Denmark/NNP
,/,
at/IN
1.75/CD
%/NN
./.
Inflation/NN
is/VBZ
expected/VBN
to/TO
be/VB
highest/JJS
in/IN
Greece/NNP
,/,
where/WRB
it/PRP
is/VBZ
projected/VBN
at/IN
14.25/CD
%/NN
,/,
and/CC
Portugal/NNP
,/,
at/IN
13/CD
%/NN
./.
At/IN
the/DT
other/JJ
end/NN
of/IN
the/DT
spectrum/NN
,/,
West/JJ
German/JJ
inflation/NN
was/VBD
forecast/VBN
at/IN
3/CD
%/NN
in/IN
1989/CD
and/CC
2.75/CD
%/NN
in/IN
1990/CD
./.
Nestle/NNP
Korea/NNP
Ltd./NNP
opened/VBD
a/DT
coffee/NN
and/CC
non-dairy-creamer/NN
plant/NN
in/IN
Chongju/NNP
,/,
South/NNP
Korea/NNP
./.
An/DT
official/NN
at/IN
Nestle/NNP
Korea/NNP
,/,
a/DT
50-50/CD
joint/JJ
venture/NN
between/IN
Nestle/NNP
S.A./NNP
and/CC
the/DT
Doosan/NNP
Group/NNP
,/,
said/VBD
the/DT
new/JJ
facility/NN
will/MD
manufacture/VB
all/DT
types/NNS
of/IN
soluble/JJ
,/,
roasted/JJ
and/CC
ground/JJ
coffee/NN
,/,
coffee/NN
mix/NN
and/CC
nondairy/JJ
coffee/NN
creamer/NN
./.
The/DT
South/NNP
Korean/NNP
coffee/NN
market/NN
,/,
consisting/VBG
mostly/RB
of/IN
instant/JJ
coffee/NN
,/,
was/VBD
estimated/VBN
at/IN
about/IN
100/CD
billion/CD
won/NNS
(/(
$/$
150.7/CD
million/CD
last/JJ
year/NN
./.
Brands/NNS
made/VBN
by/IN
the/DT
Kraft/NNP
General/NNP
Foods/NNPS
unit/NN
of/IN
Philip/NNP
Morris/NNP
Cos./NNP
had/VBD
about/IN
95/CD
%/NN
of/IN
the/DT
market/NN
share/NN
./.
Nestle/NNP
currently/RB
has/VBZ
only/RB
about/IN
a/DT
2/CD
%/NN
share/NN
with/IN
its/PRP$
Taster/NNP
's/POS
Choice/NNP
coffee/NN
./.
Poland/NNP
plans/VBZ
to/TO
start/VB
negotiations/NNS
soon/RB
on/IN
purchasing/VBG
natural/JJ
gas/NN
from/IN
Iran/NNP
,/,
the/DT
official/JJ
Islamic/NNP
Republic/NNP
News/NNP
Agency/NNP
reported/VBD
./.
The/DT
agency/NN
said/VBD
Polish/JJ
Prime/NNP
Minister/NNP
Tadeusz/NNP
Mazowiecki/NNP
told/VBD
Iranian/JJ
Deputy/NNP
Foreign/NNP
Minister/NNP
Mahmoud/NNP
Vaezi/NNP
of/IN
Poland/NNP
's/POS
willingess/NN
to/TO
purchase/VB
the/DT
gas/NN
during/IN
Mr./NNP
Vaezi/NNP
's/POS
current/JJ
visit/NN
to/TO
Warsaw/NNP
./.
The/DT
agency/NN
did/VBD
n't/RB
mention/VB
possible/JJ
quantities/NNS
and/CC
did/VBD
n't/RB
say/VB
how/WRB
the/DT
gas/NN
would/MD
be/VB
delivered/VBN
./.
A/DT
Chinese/JJ
official/NN
harshly/RB
criticized/VBN
plans/NNS
to/TO
close/VB
a/DT
British/JJ
naval/JJ
base/NN
in/IN
downtown/NN
Hong/NNP
Kong/NNP
./.
Hong/NNP
Kong/NNP
officials/NNS
announced/VBD
last/JJ
week/NN
that/IN
the/DT
base/NN
will/MD
be/VB
relocated/VBN
to/TO
a/DT
small/JJ
island/NN
to/TO
allow/VB
downtown/NN
redevelopment/NN
./.
But/CC
Beijing/NNP
wants/VBZ
to/TO
use/VB
the/DT
base/NN
for/IN
the/DT
People/NNS
's/POS
Liberation/NNP
Army/NNP
after/IN
1997/CD
,/,
when/WRB
the/DT
territory/NN
returns/VBZ
to/TO
Chinese/JJ
sovereignty/NN
./.
Ke/NNP
Zaishuo/NNP
,/,
head/NN
of/IN
China/NNP
's/POS
delegation/NN
to/TO
a/DT
Chinese-British/JJ
Liaison/NNP
Committee/NNP
on/IN
Hong/NNP
Kong/NNP
,/,
accused/VBD
Britain/NNP
of/IN
trying/VBG
to/TO
impose/VB
a/DT
fait/NN
accompli/NN
and/CC
said/VBD
,/,
``/``
This/DT
is/VBZ
something/NN
we/PRP
can/MD
not/RB
accept/VB
./.
''/''
The/DT
Israeli/JJ
and/CC
Soviet/JJ
national/JJ
airlines/NNS
have/VBP
reached/VBN
preliminary/JJ
agreement/NN
for/IN
launching/VBG
the/DT
first/JJ
direct/JJ
flights/NNS
between/IN
Tel/NNP
Aviv/NNP
and/CC
Moscow/NNP
,/,
a/DT
spokesman/NN
for/IN
the/DT
Israeli/JJ
airline/NN
,/,
El/NNP
Al/NNP
,/,
said/VBD
./.
El/NNP
Al/NNP
director/NN
Rafi/NNP
Har-Lev/NNP
and/CC
top/JJ
officials/NNS
of/IN
the/DT
Soviet/NNP
Union/NNP
's/POS
Aeroflot/NNP
negotiated/VBD
a/DT
preliminary/JJ
pact/NN
in/IN
Moscow/NNP
this/DT
week/NN
,/,
the/DT
spokesman/NN
said/VBD
./.
He/PRP
added/VBD
that/IN
concluding/VBG
the/DT
deal/NN
requires/VBZ
approval/NN
by/IN
the/DT
governments/NNS
of/IN
both/DT
countries/NNS
,/,
which/WDT
have/VBP
never/RB
had/VBN
direct/JJ
air/NN
links/NNS
./.
The/DT
chairman/NN
and/CC
a/DT
director/NN
of/IN
one/CD
of/IN
the/DT
Republic/NNP
of/IN
Singapore/NNP
's/POS
leading/VBG
property/NN
companies/NNS
,/,
City/NNP
Development/NNP
Ltd./NNP
,/,
or/CC
CDL/NNP
,/,
were/VBD
charged/VBN
yesterday/RB
with/IN
criminal/JJ
breach/NN
of/IN
trust/NN
of/IN
some/DT
800,000/CD
Singapore/NNP
dollars/NNS
US$/$
409,000/CD
Kwek/NNP
Hong/NNP
Png/NNP
,/,
chairman/NN
of/IN
CDL/NNP
,/,
and/CC
director/NN
Quek/NNP
Leng/NNP
Chye/NNP
were/VBD
arrested/VBN
by/IN
the/DT
republic/NN
's/POS
Corrupt/NNP
Practices/NNPS
Investigation/NNP
Bureau/NNP
Tuesday/NNP
night/NN
./.
In/IN
addition/NN
to/TO
abetting/VBG
in/IN
the/DT
alleged/JJ
criminal/JJ
breach/NN
of/IN
trust/NN
,/,
Kwek/NNP
Hong/NNP
Png/NNP
was/VBD
also/RB
charged/VBN
with/IN
dishonestly/RB
receiving/VBG
S$/$
500,000/CD
that/WDT
had/VBD
been/VBN
stolen/VBN
./.
Both/DT
men/NNS
were/VBD
charged/VBN
in/IN
a/DT
subordinate/JJ
court/NN
and/CC
released/VBN
on/IN
bail/NN
of/IN
S$/$
1/CD
million/CD
./.
The/DT
charges/NNS
are/VBP
the/DT
culmination/NN
of/IN
weeks/NNS
of/IN
rumors/NNS
concerning/VBG
CDL/NNP
that/WDT
have/VBP
depressed/VBN
the/DT
company/NN
's/POS
share/NN
price/NN
and/CC
to/TO
a/DT
lesser/JJR
extent/NN
the/DT
shares/NNS
of/IN
all/DT
companies/NNS
owned/VBN
by/IN
CDL/NNP
's/POS
controlling/JJ
Quek/NNP
family/NN
,/,
brokers/NNS
in/IN
Singapore/NNP
say/VBP
./.
The/DT
Queks/NNPS
control/VBP
the/DT
Hong/NNP
Leong/NNP
Group/NNP
,/,
which/WDT
has/VBZ
widespread/JJ
interests/NNS
in/IN
manufacturing/NN
,/,
property/NN
and/CC
finance/NN
in/IN
both/DT
Malaysia/NNP
and/CC
Singapore/NNP
./.
News/NN
of/IN
the/DT
arrest/NN
and/CC
charging/NN
of/IN
the/DT
two/CD
men/NNS
helped/VBD
to/TO
push/VB
prices/NNS
on/IN
the/DT
Singapore/NNP
Stock/NNP
market/NN
sharply/RB
lower/RBR
in/IN
early/JJ
trading/NN
yesterday/NN
,/,
but/CC
brokers/NNS
said/VBD
that/IN
the/DT
market/NN
and/CC
CDL/NNP
shares/NNS
recovered/VBD
once/IN
it/PRP
became/VBD
apparent/JJ
the/DT
charges/NNS
were/VBD
limited/VBN
to/TO
the/DT
two/CD
men/NNS
personally/RB
./.
One/CD
of/IN
the/DT
two/CD
British/JJ
companies/NNS
still/RB
making/VBG
hard/JJ
toilet/NN
paper/NN
stopped/VBD
production/NN
of/IN
it/PRP
./.
British/NNP
Tissues/NNPS
decided/VBD
to/TO
do/VB
away/RB
with/IN
its/PRP$
hard/JJ
paper/NN
after/IN
a/DT
major/JJ
customer/NN
,/,
British/NNP
Rail/NNP
,/,
switched/VBD
to/TO
softer/JJR
tissues/NNS
for/IN
train/NN
bathrooms/NNS
.../:
./.
Peasants/NNS
in/IN
Inner/NNP
Mongolia/NNP
have/VBP
partly/RB
dismantled/VBN
a/DT
20-mile/JJ
section/NN
of/IN
China/NNP
's/POS
famed/JJ
Great/NNP
Wall/NNP
,/,
the/DT
official/JJ
People/NNPS
's/POS
Daily/NNP
said/VBD
./.
The/DT
paper/NN
said/VBD
the/DT
bricks/NNS
were/VBD
used/VBN
to/TO
build/VB
homes/NNS
and/CC
furnaces/NNS
and/CC
,/,
as/IN
a/DT
result/NN
,/,
the/DT
wall/NN
``/``
is/VBZ
in/IN
terrible/JJ
shape/NN
./.
''/''
Wednesday/NNP
,/,
October/NNP
18/CD
,/,
1989/CD
The/DT
key/JJ
U.S./NNP
and/CC
foreign/JJ
annual/JJ
interest/NN
rates/NNS
below/RB
are/VBP
a/DT
guide/NN
to/TO
general/JJ
levels/NNS
but/CC
do/VBP
n't/RB
always/RB
represent/VB
actual/JJ
transactions/NNS
./.
PRIME/NN
RATE/NN
:/:
10/CD
1\/2/CD
%/NN
./.
The/DT
base/NN
rate/NN
on/IN
corporate/JJ
loans/NNS
at/IN
large/JJ
U.S./NNP
money/NN
center/NN
commercial/JJ
banks/NNS
./.
FEDERAL/JJ
FUNDS/NNS
:/:
8/CD
15\/16/CD
%/NN
high/JJ
,/,
8/CD
5\/8/CD
%/NN
low/JJ
,/,
8/CD
3\/4/CD
%/NN
near/IN
closing/NN
bid/NN
,/,
8/CD
7\/8/CD
%/NN
offered/VBN
./.
Reserves/NNS
traded/VBN
among/IN
commercial/JJ
banks/NNS
for/IN
overnight/JJ
use/NN
in/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
or/CC
more/JJR
./.
Source/NN
:/:
Fulton/NNP
Prebon/NNP
U.S.A/NNP
./.
Inc/NNP
./.
DISCOUNT/NN
RATE/NN
:/:
7/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
depository/NN
institutions/NNS
by/IN
the/DT
New/NNP
York/NNP
Federal/NNP
Reserve/NNP
Bank/NNP
./.
CALL/JJ
MONEY/NN
:/:
9/CD
3\/4/CD
%/NN
to/TO
10/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
brokers/NNS
on/IN
stock/NN
exchange/NN
collateral/NN
./.
COMMERCIAL/JJ
PAPER/NNS
placed/VBN
directly/RB
by/IN
General/NNP
Motors/NNPS
Acceptance/NNP
Corp./NNP
:/:
8.45/CD
%/NN
30/CD
to/TO
44/CD
days/NNS
;/:
8.25/CD
%/NN
45/CD
to/TO
74/CD
days/NNS
;/:
8.30/CD
%/NN
75/CD
to/TO
99/CD
days/NNS
;/:
7.75/CD
%/NN
100/CD
to/TO
179/CD
days/NNS
;/:
7.50/CD
%/NN
180/CD
to/TO
270/CD
days/NNS
./.
COMMERCIAL/JJ
PAPER/NN
:/:
High-grade/JJ
unsecured/JJ
notes/NNS
sold/VBN
through/IN
dealers/NNS
by/IN
major/JJ
corporations/NNS
in/IN
multiples/NNS
of/IN
$/$
1,000/CD
:/:
8.55/CD
%/NN
30/CD
days/NNS
;/:
8.45/CD
%/NN
60/CD
days/NNS
;/:
8.375/CD
%/NN
90/CD
days/NNS
./.
CERTIFICATES/NNS
OF/IN
DEPOSIT/NN
:/:
8.05/CD
%/NN
one/CD
month/NN
;/:
8.02/CD
%/NN
two/CD
months/NNS
;/:
8/CD
%/NN
three/CD
months/NNS
;/:
7.98/CD
%/NN
six/CD
months/NNS
;/:
7.95/CD
%/NN
one/CD
year/NN
./.
Average/JJ
of/IN
top/JJ
rates/NNS
paid/VBN
by/IN
major/JJ
New/NNP
York/NNP
banks/NNS
on/IN
primary/JJ
new/JJ
issues/NNS
of/IN
negotiable/JJ
C.D.s/NNS
,/,
usually/RB
on/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
and/CC
more/JJR
./.
The/DT
minimum/JJ
unit/NN
is/VBZ
$/$
100,000/CD
./.
Typical/JJ
rates/NNS
in/IN
the/DT
secondary/JJ
market/NN
:/:
8.53/CD
%/NN
one/CD
month/NN
;/:
8.48/CD
%/NN
three/CD
months/NNS
;/:
8.40/CD
%/NN
six/CD
months/NNS
./.
BANKERS/NNS
ACCEPTANCES/NNS
:/:
8.42/CD
%/NN
30/CD
days/NNS
;/:
8.30/CD
%/NN
60/CD
days/NNS
;/:
8.28/CD
%/NN
90/CD
days/NNS
;/:
8.15/CD
%/NN
120/CD
days/NNS
;/:
8.05/CD
%/NN
150/CD
days/NNS
;/:
7.95/CD
%/NN
180/CD
days/NNS
./.
Negotiable/JJ
,/,
bank-backed/JJ
business/NN
credit/NN
instruments/NNS
typically/RB
financing/VBG
an/DT
import/NN
order/NN
./.
LONDON/NNP
LATE/JJ
EURODOLLARS/NNS
:/:
8/CD
11\/16/CD
%/NN
to/TO
8/CD
9\/16/CD
%/NN
one/CD
month/NN
;/:
8/CD
5\/8/CD
%/NN
to/TO
8/CD
1\/2/CD
%/NN
two/CD
months/NNS
;/:
8/CD
5\/8/CD
%/NN
to/TO
8/CD
1\/2/CD
%/NN
three/CD
months/NNS
;/:
8/CD
9\/16/CD
%/NN
to/TO
8/CD
7\/16/CD
%/NN
four/CD
months/NNS
;/:
8/CD
1\/2/CD
%/NN
to/TO
8/CD
3\/8/CD
%/NN
five/CD
months/NNS
;/:
8/CD
1\/2/CD
%/NN
to/TO
8/CD
3\/8/CD
%/NN
six/CD
months/NNS
./.
LONDON/NNP
INTERBANK/NNP
OFFERED/VBN
RATES/NNS
LIBOR/NNP
8/CD
11\/16/CD
%/NN
one/CD
month/NN
;/:
8/CD
11\/16/CD
%/NN
three/CD
months/NNS
;/:
8/CD
1\/2/CD
%/NN
six/CD
months/NNS
;/:
8/CD
1\/2/CD
%/NN
one/CD
year/NN
./.
The/DT
average/NN
of/IN
interbank/NN
offered/VBN
rates/NNS
for/IN
dollar/NN
deposits/NNS
in/IN
the/DT
London/NNP
market/NN
based/VBN
on/IN
quotations/NNS
at/IN
five/CD
major/JJ
banks/NNS
./.
FOREIGN/JJ
PRIME/JJ
RATES/NNS
:/:
Canada/NNP
13.50/CD
%/NN
;/:
Germany/NNP
8.50/CD
%/NN
;/:
Japan/NNP
4.875/CD
%/NN
;/:
Switzerland/NN
8.50/CD
%/NN
;/:
Britain/NNP
15/CD
%/NN
./.
These/DT
rate/NN
indications/NNS
are/VBP
n't/RB
directly/RB
comparable/JJ
;/:
lending/NN
practices/NNS
vary/VBP
widely/RB
by/IN
location/NN
./.
TREASURY/NNP
BILLS/NNS
:/:
Results/NNS
of/IN
the/DT
Monday/NNP
,/,
October/NNP
16/CD
,/,
1989/CD
,/,
auction/NN
of/IN
short-term/JJ
U.S./NNP
government/NN
bills/NNS
,/,
sold/VBN
at/IN
a/DT
discount/NN
from/IN
face/JJ
value/NN
in/IN
units/NNS
of/IN
$/$
10,000/CD
to/TO
$/$
1/CD
million/CD
:/:
7.37/CD
%/NN
13/CD
weeks/NNS
;/:
7.42/CD
%/NN
26/CD
weeks/NNS
./.
FEDERAL/NNP
HOME/NNP
LOAN/NNP
MORTGAGE/NNP
CORP/NNP
./.
Freddie/NNP
Mac/NNP
yields/NNS
on/IN
30-year/JJ
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NN
./.
9.88/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
7.875/CD
%/NN
,/,
2/CD
%/NN
rate/NN
capped/VBD
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNPS
Inc/NNP
./.
FEDERAL/NNP
NATIONAL/NNP
MORTGAGE/NNP
ASSOCIATION/NNP
Fannie/NNP
Mae/NNP
yields/NNS
on/IN
30/CD
year/NN
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
par/JJ
9.83/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
8.70/CD
%/NN
,/,
6\/2/CD
rate/NN
capped/VBD
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNPS
Inc/NNP
./.
MERRILL/NNP
LYNCH/NNP
READY/JJ
ASSETS/NNS
TRUST/NN
:/:
8.50/CD
%/NN
./.
Annualized/VBN
average/JJ
rate/NN
of/IN
return/NN
after/IN
expenses/NNS
for/IN
the/DT
past/JJ
30/CD
days/NNS
;/:
not/RB
a/DT
forecast/NN
of/IN
future/JJ
returns/NNS
./.
A/DT
grand/JJ
jury/NN
here/RB
indicted/VBD
Norton/NNP
Co./NNP
's/POS
former/JJ
director/NN
of/IN
advanced-ceramics/NNS

research/NN
,/,
charging/VBG
him/PRP
with/IN
interstate/NN
transportation/NN
of/IN
stolen/VBN
property/NN
./.
Norton/NNP
and/CC
General/NNP
Electric/NNP
Co./NNP
last/JJ
month/NN
filed/VBD
a/DT
lawsuit/NN
against/IN
the/DT
former/JJ
research/NN
manager/NN
,/,
Chien-Min/NNP

Sung/NNP
,/,
charging/VBG
him/PRP
with/IN
stealing/VBG
trade/NN
secrets/NNS
./.
Mr./NNP
Sung/NNP
formerly/RB
worked/VBD
at/IN
General/NNP
Electric/NNP
in/IN
research/NN
on/IN
synthetic/JJ
diamonds/NNS
./.
The/DT
criminal/JJ
charges/NNS
brought/VBN
against/IN
him/PRP
involved/VBN
GE/NNP
technology/NN
,/,
according/VBG
the/DT
court/NN
documents/NNS
./.
If/IN
convicted/VBN
,/,
he/PRP
could/MD
be/VB
imprisoned/VBN
for/IN
up/IN
to/TO
10/CD
years/NNS
and/CC
fined/VBN
$/$
250,000/CD
./.
Mr./NNP
Sung/NNP
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
He/PRP
earlier/RB
denied/VBD
the/DT
allegations/NNS
against/IN
him/PRP
in/IN
the/DT
lawsuit/NN
by/IN
Norton/NNP
and/CC
GE/NNP
./.
Norton/NNP
makes/VBZ
sandpaper/NN
and/CC
other/JJ
abrasives/NNS
,/,
diamond/NN
tools/NNS
,/,
specialty/JJ
plastics/NNS
and/CC
ceramics/NNS
./.
As/IN
the/DT
citizens/NNS
of/IN
San/NNP
Francisco/NNP
and/CC
surrounding/VBG
communities/NNS
began/VBD
assessing/VBG
the/DT
damage/NN
from/IN
Tuesday/NNP
's/POS
devastating/JJ
earthquake/NN
,/,
NBC/NNP
News/NNP
began/VBD
assessing/VBG
the/DT
damage/NN
from/IN
what/WP
some/DT
said/VBD
was/VBD
a/DT
failure/NN
to/TO
provide/VB
comprehensive/JJ
coverage/NN
in/IN
the/DT
earthquake/NN
's/POS
initial/JJ
moments/NNS
./.
``/``
In/IN
terms/NNS
of/IN
coverage/NN
,/,
it/PRP
was/VBD
a/DT
disaster/NN
equal/JJ
to/TO
the/DT
earthquakes/NNS
,/,
''/''
said/VBD
Eric/NNP
Premner/NNP
,/,
president/NN
for/IN
broadcasting/NN
of/IN
King/NNP
Broadcasting/NNP
Co./NNP
,/,
which/WDT
owns/VBZ
the/DT
NBC/NNP
affiliate/NN
in/IN
Seattle/NNP
,/,
Wash/NNP
./.
While/IN
rival/JJ
ABC/NNP
News/NNP
outstripped/VBD
the/DT
competition/NN
in/IN
live/JJ
coverage/NN
of/IN
the/DT
event/NN
by/IN
sheer/JJ
luck/NN
--/:
the/DT
network/NN
was/VBD
broadcasting/VBG
the/DT
World/NNP
Series/NNP
from/IN
Candlestick/NNP
Park/NNP
when/WRB
the/DT
quake/NN
struck/VBD
--/:
NBC/NNP
News/NNP
was/VBD
unable/JJ
to/TO
get/VB
its/PRP$
signal/NN
out/IN
of/IN
San/NNP
Francisco/NNP
for/IN
the/DT
first/JJ
hour/NN
after/IN
the/DT
quake/NN
./.
``/``
I/PRP
have/VBP
to/TO
attribute/VB
the/DT
lackluster/JJ
performance/NN
to/TO
a/DT
natural/JJ
disaster/NN
,/,
''/''
said/VBD
Mr./NNP
Premner/NNP
./.
``/``
So/CC
before/IN
I/PRP
start/VBP
to/TO
be/VB
really/RB
critical/JJ
of/IN
NBC/NNP
,/,
I/PRP
would/MD
like/VB
to/TO
know/VB
more/JJR
about/IN
what/WP
happened/VBN
./.
''/''
There/EX
were/VBD
no/DT
complaints/NNS
from/IN
affiliates/NNS
of/IN
CBS/NNP
Inc./NNP
and/CC
Cable/NNP
News/NNP
Network/NNP
,/,
a/DT
unit/NN
of/IN
Turner/NNP
Broadcasting/NNP
System/NNP
Inc/NNP
./.
But/CC
that/DT
was/VBD
not/RB
the/DT
case/NN
at/IN
NBC/NNP
News/NNP
,/,
which/WDT
has/VBZ
been/VBN
dogged/VBN
with/IN
the/DT
image/NN
of/IN
not/RB
being/VBG
aggressive/JJ
on/IN
major/JJ
breaking/JJ
stories/NNS
./.
Last/JJ
summer/NN
,/,
the/DT
affiliates/NNS
bitterly/RB
complained/VBD
to/TO
network/VB
executives/NNS
about/IN
the/DT
poor/JJ
coverage/NN
of/IN
the/DT
student/NN
uprising/NN
in/IN
China/NNP
./.
``/``
I/PRP
was/VBD
not/RB
pleased/VBN
with/IN
the/DT
slow/JJ
start/NN
,/,
and/CC
neither/DT
was/VBD
NBC/NNP
News/NNP
,/,
''/''
said/VBD
Guy/NNP
Hempel/NNP
,/,
general/JJ
manager/NN
of/IN
NBC/NNP
affiliate/NN
WAVE/NNP
in/IN
Louisville/NNP
,/,
Ky/NNP
./.
A/DT
spokesman/NN
for/IN
National/NNP
Broadcasting/NNP
Co./NNP
,/,
a/DT
unit/NN
of/IN
General/NNP
Electric/NNP
Co./NNP
,/,
said/VBD
the/DT
network/NN
was/VBD
``/``
looking/VBG
into/IN
what/WP
happened/VBN
./.
''/''
The/DT
stations/NNS
said/VBD
they/PRP
were/VBD
pleased/VBN
with/IN
the/DT
extended/JJ
coverage/NN
yesterday/NN
,/,
including/VBG
a/DT
special/JJ
five-hour/JJ
edition/NN
of/IN
``/``
Today/NNP
./.
''/''
Don/NNP
Browne/NNP
,/,
director/NN
of/IN
news/NN
at/IN
NBC/NNP
News/NNP
,/,
said/VBD
in/IN
an/DT
interview/NN
that/IN
``/``
we/PRP
could/MD
n't/RB
get/VB
a/DT
signal/NN
out/IN
of/IN
San/NNP
Francisco/NNP
./.
We/PRP
were/VBD
out/IN
of/IN
the/DT
box/NN
./.
It/PRP
was/VBD
horrible/JJ
./.
The/DT
comment/NN
we/PRP
're/VBP
hearing/VBG
is/VBZ
that/IN
we/PRP
were/VBD
slow/JJ
out/IN
of/IN
the/DT
box/NN
,/,
but/CC
beat/VBD
everyone/NN
else/JJ
in/IN
the/DT
stretch/NN
./.
''/''
NBC/NNP
broadcast/VBD
throughout/IN
the/DT
entire/JJ
night/NN
and/CC
did/VBD
not/RB
go/VB
off/IN
the/DT
air/NN
until/IN
noon/NN
yesterday/NN
./.
The/DT
quake/NN
postponed/VBD
the/DT
third/JJ
and/CC
fourth/JJ
games/NNS
of/IN
the/DT
World/NNP
Series/NNP
./.
In/IN
place/NN
of/IN
the/DT
games/NNS
,/,
ABC/NNP
said/VBD
it/PRP
planned/VBD
to/TO
broadcast/VB
next/JJ
week/NN
's/POS
episodes/NNS
of/IN
its/PRP$
prime-time/NN
Wednesday/NNP
and/CC
Thursday/NNP
lineups/NNS
,/,
except/IN
for/IN
a/DT
one-hour/JJ
special/NN
on/IN
the/DT
earthquake/NN
at/IN
10/CD
p.m./RB
last/JJ
night/NN
./.
The/DT
series/NN
is/VBZ
scheduled/VBN
to/TO
resume/VB
Tuesday/NNP
evening/NN
in/IN
San/NNP
Francisco/NNP
./.
``/``
There/EX
are/VBP
no/DT
commercials/NNS
to/TO
make/VB
up/RB
for/IN
since/IN
we/PRP
're/VBP
going/VBG
to/TO
eventually/RB
broadcast/VB
the/DT
World/NNP
Series/NNP
,/,
''/''
said/VBD
a/DT
network/NN
spokesman/NN
./.
Pinnacle/NNP
West/NNP
Capital/NNP
Corp./NNP
said/VBD
it/PRP
suspended/VBD
indefinitely/RB
its/PRP$
common/JJ
stock/NN
dividend/NN
and/CC
reported/VBD
a/DT
91/CD
%/NN
plunge/NN
in/IN
third-quarter/JJ
net/JJ
income/NN
./.
The/DT
announcement/NN
,/,
made/VBN
after/IN
the/DT
close/NN
of/IN
trading/NN
,/,
caught/VBD
analysts/NNS
by/RB
surprise/RB
./.
The/DT
company/NN
closed/VBD
at/IN
$/$
12/CD
a/DT
share/NN
,/,
down/RB
62.5/CD
cents/NNS
,/,
in/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
Pinnacle/NNP
West/NNP
slashed/VBD
its/PRP$
quarterly/JJ
dividend/NN
to/TO
40/CD
cents/NNS
per/IN
share/NN
from/IN
70/CD
cents/NNS
in/IN
December/NNP
,/,
saying/VBG
at/IN
the/DT
time/NN
that/IN
it/PRP
believed/VBD
the/DT
new/JJ
,/,
lower/JJR
dividend/NN
was/VBD
``/``
sustainable/JJ
./.
''/''
A/DT
company/NN
spokesman/NN
said/VBD
the/DT
decision/NN
to/TO
eliminate/VB
the/DT
dividend/NN
resulted/VBN
from/IN
a/DT
quarterly/JJ
appraisal/NN
and/CC
that/IN
circumstances/NNS
had/VBD
changed/VBN
since/IN
the/DT
December/NNP
announcement/NN
./.
He/PRP
declined/VBD
to/TO
elaborate/VB
./.
Edward/NNP
J./NNP
Tirello/NNP
Jr./NNP
,/,
an/DT
analyst/NN
at/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
,/,
speculated/VBD
that/IN
the/DT
sudden/JJ
dividend/NN
elimination/NN
presages/VBZ
an/DT
expensive/JJ
agreement/NN
with/IN
thrift/NN
regulators/NNS
over/IN
the/DT
company/NN
's/POS
insolvent/JJ
MeraBank/NNP
savings/NNS
and/CC
loan/NN
unit/NN
./.
Analysts/NNS
have/VBP
estimated/VBN
that/IN
Pinnacle/NNP
West/NNP
may/MD
have/VB
to/TO
inject/VB
between/IN
$/$
300/CD
million/CD
and/CC
$/$
400/CD
million/CD
into/IN
the/DT
MeraBank/NNP
unit/NN
before/IN
turning/VBG
the/DT
thrift/NN
over/RP
to/TO
federal/JJ
regulators/NNS
./.
The/DT
latest/JJS
financial/JJ
results/NNS
at/IN
the/DT
troubled/JJ
utility/NN
and/CC
thrift/NN
holding/VBG
company/NN
,/,
based/VBN
in/IN
Phoenix/NNP
,/,
Ariz./NNP
,/,
reflect/VBP
continuing/VBG
problems/NNS
at/IN
MeraBank/NNP
and/CC
losses/NNS
in/IN
real-estate/NN
,/,
venture-capital/NN
and/CC
uranium-mining/NN
operations/NNS
./.
Third-quarter/JJ
net/JJ
income/NN
slid/VBD
to/TO
$/$
5.1/CD
million/CD
,/,
or/CC
six/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
56/CD
million/CD
,/,
or/CC
65/CD
cents/NNS
,/,
a/DT
year/NN
earlier/RB
./.
Utility/NN
operations/NNS
,/,
the/DT
only/JJ
company/NN
unit/NN
operating/VBG
in/IN
the/DT
black/JJ
in/IN
the/DT
latest/JJS
period/NN
,/,
had/VBD
a/DT
26/CD
%/NN
drop/NN
in/IN
profit/NN
,/,
to/TO
$/$
86.3/CD
million/CD
,/,
largely/RB
as/IN
a/DT
result/NN
of/IN
outages/NNS
at/IN
the/DT
company/NN
's/POS
huge/JJ
Palo/NNP
Verde/NNP
nuclear/JJ
facility/NN
and/CC
the/DT
cost/NN
of/IN
purchased/JJ
replacement/NN
power/NN
./.
In/IN
other/JJ
operations/NNS
,/,
losses/NNS
at/IN
MeraBank/NNP
totaled/VBN
$/$
85.7/CD
million/CD
in/IN
the/DT
latest/JJS
quarter/NN
,/,
compared/VBN
with/IN
a/DT
$/$
2.5/CD
million/CD
profit/NN
a/DT
year/NN
earlier/RB
./.
The/DT
latest/JJS
quarter/NN
includes/VBZ
a/DT
$/$
42.7/CD
million/CD
addition/NN
to/TO
loan-loss/NN
reserves/NNS
./.
As/RB
recently/RB
as/IN
August/NNP
,/,
the/DT
company/NN
said/VBD
it/PRP
did/VBD
n't/RB
foresee/VB
a/DT
need/NN
for/IN
substantial/JJ
additions/NNS
to/TO
reserves/NNS
./.
Pinnacle/NNP
's/POS
SunCor/NNP
Development/NNP
Co/NNP
./.
real-estate/NN
unit/NN
's/POS
loss/NN
narrowed/VBN
to/TO
$/$
13.8/CD
million/CD
from/IN
$/$
78.4/CD
million/CD
./.
The/DT
latest/JJS
period/NN
included/VBD
a/DT
$/$
9/CD
million/CD
write-down/NN
on/IN
undeveloped/JJ
land/NN
,/,
while/IN
the/DT
year-earlier/JJ

period/NN
included/VBD
a/DT
$/$
46/CD
million/CD
reserve/NN
for/IN
real-estate/NN
losses/NNS
./.
Losses/NNS
at/IN
its/PRP$
Malapai/NNP
Resources/NNPS
Co/NNP
./.
uranium-mining/NN
unit/NN
narrowed/VBN
to/TO
$/$
3.4/CD
million/CD
from/IN
$/$
18/CD
million/CD
a/DT
year/NN
ago/RB
,/,
which/WDT
included/VBD
a/DT
$/$
9/CD
million/CD
write-down/NN
of/IN
utility/NN
inventories/NNS
./.
Losses/NNS
at/IN
El/NNP
Dorado/NNP
Investment/NNP
Co./NNP
,/,
the/DT
venture-capital/NN
operation/NN
,/,
widened/VBN
to/TO
$/$
6.8/CD
million/CD
from/IN
$/$
425,000/CD
a/DT
year/NN
earlier/RB
./.
The/DT
latest/JJS
quarter/NN
included/VBD
a/DT
$/$
6.6/CD
million/CD
write-down/NN
of/IN
investments/NNS
./.
Equitec/NNP
Financial/NNP
Group/NNP
said/VBD
it/PRP
will/MD
ask/VB
as/RB
many/JJ
as/IN
100,000/CD
investors/NNS
in/IN
12/CD
of/IN
its/PRP$
public/JJ
real-estate/NN
limited/JJ
partnerships/NNS
to/TO
give/VB
approval/NN
to/TO
rolling/VBG
them/PRP
up/IN
into/IN
a/DT
new/JJ
master/NN
limited/JJ
partnership/NN
./.
Under/IN
the/DT
proposal/NN
by/IN
Equitec/NNP
,/,
a/DT
financially/RB
troubled/JJ
real-estate/NN
syndicator/NN
,/,
New/NNP
York-based/JJ
Hallwood/NNP
Group/NNP
Inc./NNP
would/MD
replace/VB
Equitec/NNP
as/IN
the/DT
newly/RB
formed/JJ
master/NN
limited/JJ
partnership/NN
's/POS
general/JJ
partner/NN
and/CC
manager/NN
./.
Shares/NNS
of/IN
the/DT
new/JJ
partnership/NN
would/MD
trade/VB
on/IN
an/DT
exchange/NN
like/IN
a/DT
stock/NN
./.
Hallwood/NNP
is/VBZ
a/DT
merchant/NN
bank/NN
whose/WP$
activities/NNS
include/VBP
the/DT
ownership/NN
,/,
management/NN
and/CC
financial/JJ
restructuring/NN
of/IN
shopping/NN
centers/NNS
,/,
office/NN
buildings/NNS
,/,
apartments/NNS
and/CC
other/JJ
real/JJ
estate/NN
./.
In/IN
a/DT
statement/NN
,/,
Equitec/NNP
Chairman/NNP
Richard/NNP
L./NNP
Saalfeld/NNP
said/VBD
the/DT
transfer/NN
will/MD
benefit/VB
both/DT
the/DT
company/NN
and/CC
investors/NNS
in/IN
the/DT
12/CD
limited/JJ
partnerships/NNS
included/VBN
in/IN
the/DT
proposed/JJ
rollup/NN
./.
While/IN
he/PRP
did/VBD
n't/RB
describe/VB
the/DT
partnerships/NNS
'/POS
financial/JJ
condition/NN
,/,
he/PRP
said/VBD
their/PRP$
operations/NNS
``/``
continue/VBP
to/TO
drain/VB
the/DT
resources/NNS
of/IN
Equitec/NNP
./.
''/''
Equitec/NN
posted/VBD
a/DT
$/$
3.3/CD
million/CD
net/NN
loss/NN
in/IN
the/DT
second/JJ
quarter/NN
on/IN
$/$
11.8/CD
million/CD
of/IN
revenue/NN
,/,
compared/VBN
with/IN
a/DT
net/JJ
loss/NN
of/IN
$/$
12.9/CD
million/CD
in/IN
the/DT
year-earlier/JJ
period/NN
on/IN
revenue/NN
of/IN
$/$
9.1/CD
million/CD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Equitec/NNP
closed/VBD
at/IN
$/$
2.625/CD
a/DT
share/NN
,/,
unchanged/JJ
./.
Because/IN
of/IN
Tuesday/NNP
's/POS
earthquake/NN
in/IN
Northern/JJ
California/NNP
,/,
company/NN
officials/NNS
could/MD
n't/RB
immediately/RB
be/VB
reached/VBN
for/IN
additional/JJ
comment/NN
./.
A/DT
spokesman/NN
for/IN
Hallwood/NNP
said/VBD
the/DT
12/CD
limited/JJ
partnerships/NNS
,/,
which/WDT
were/VBD
marketed/VBN
by/IN
brokerage/NN
firms/NNS
and/CC
financial/JJ
planners/NNS
between/IN
1979/CD
and/CC
1984/CD
,/,
raised/VBD
several/JJ
hundred/CD
million/CD
dollars/NNS
from/IN
investors/NNS
./.
With/IN
airline/NN
deals/NNS
in/IN
a/DT
tailspin/NN
,/,
legendary/JJ
Wall/NNP
Street/NNP
trader/NN
Michael/NNP
Steinhardt/NNP
could/MD
have/VB
trouble/NN
parachuting/VBG
out/IN
of/IN
USAir/NNP
Group/NNP
,/,
traders/NNS
say/VBP
./.
Only/RB
a/DT
week/NN
ago/RB
,/,
when/WRB
airline/NN
buy-out/NN
fever/NN
was/VBD
already/RB
winding/VBG
down/RB
,/,
Mr./NNP
Steinhardt/NNP
was/VBD
engaged/VBN
in/IN
a/DT
duel/NN
with/IN
USAir/NNP
./.
He/PRP
was/VBD
threatening/VBG
to/TO
take/VB
over/RP
the/DT
carrier/NN
,/,
after/IN
spending/VBG
an/DT
estimated/VBN
$/$
167/CD
million/CD
to/TO
build/VB
an/DT
8.4/CD
%/NN
USAir/NNP
stake/NN
for/IN
his/PRP$
investment/NN
clients/NNS
./.
The/DT
would-be/JJ
raider/NN
even/RB
hired/VBD
an/DT
investment/NN
banker/NN
to/TO
give/VB
teeth/NNS
to/TO
his/PRP$
takeover/NN
threat/NN
,/,
which/WDT
was/VBD
widely/RB
interpreted/VBN
as/IN
an/DT
effort/NN
to/TO
flush/VB
out/RP
an/DT
acquirer/NN
for/IN
USAir/NNP
,/,
or/CC
for/IN
his/PRP$
own/JJ
stake/NN
./.
In/IN
fighting/VBG
USAir/NNP
,/,
Mr./NNP
Steinhardt/NNP
was/VBD
pitted/VBN
against/IN
another/DT
investor/NN
,/,
billionnaire/NN
Warren/NNP
Buffett/NNP
,/,
who/WP
bought/VBD
into/IN
USAir/NNP
to/TO
help/VB
fend/VB
off/RP
Mr./NNP
Steinhardt/NNP
./.
Mr./NNP
Buffett/NNP
's/POS
firm/NN
,/,
Berkshire/NNP
Hathaway/NNP
,/,
holds/VBZ
a/DT
much/RB
bigger/JJR
stake/NN
in/IN
the/DT
carrier/NN
than/IN
Mr./NNP
Steinhardt/NNP
's/POS
firm/NN
,/,
Steinhardt/NNP
Partners/NNPS
./.
Now/RB
,/,
in/IN
the/DT
wake/NN
of/IN
UAL/NNP
's/POS
troubles/NNS
in/IN
financing/VBG
its/PRP$
buy-out/NN
,/,
the/DT
airline/NN
raiding/NN
game/NN
has/VBZ
been/VBN
grounded/VBN
./.
Instead/RB
of/IN
hoping/VBG
to/TO
sell/VB
his/PRP$
USAir/NNP
stake/NN
at/IN
analysts/NNS
'/POS
estimated/JJ
buy-out/NN
price/NN
of/IN
$/$
80/CD
a/DT
share/NN
,/,
Mr./NNP
Steinhardt/NNP
is/VBZ
stuck/VBN
with/IN
roughly/RB
3.7/CD
million/CD
USAir/NNP
shares/NNS
that/WDT
cost/VBD
him/PRP
$/$
45/CD
,/,
on/IN
average/NN
,/,
but/CC
yesterday/NN
closed/VBD
at/IN
40/CD
1\/2/CD
,/,
up/IN
1\/4/CD
,/,
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
``/``
It/PRP
does/VBZ
n't/RB
make/VB
sense/NN
to/TO
parachute/VB
out/RB
at/IN
this/DT
price/NN
,/,
''/''
Mr./NNP
Steinhardt/NNP
says/VBZ
,/,
though/IN
he/PRP
has/VBZ
stopped/VBN
his/PRP$
takeover/NN
talk/NN
and/CC
now/RB
commends/VBZ
USAir/NNP
managers/NNS
'/POS
``/``
operating/NN
skills/NNS
./.
''/''
At/IN
the/DT
current/JJ
price/NN
,/,
the/DT
USAir/NNP
holding/NN
represents/VBZ
9/CD
%/NN
of/IN
all/PDT
the/DT
assets/NNS
that/IN
Mr./NNP
Steinhardt/NNP
manages/VBZ
./.
A/DT
week/NN
ago/RB
,/,
USAir/NNP
stock/NN
briefly/RB
soared/VBD
above/IN
52/CD
after/IN
a/DT
report/NN
in/IN
USA/NNP
Today/NNP
that/IN
Mr./NNP
Steinhardt/NNP
might/MD
launch/VB
a/DT
hostile/JJ
bid/NN
for/IN
the/DT
carrier/NN
,/,
though/IN
takeover/NN
speculators/NNS
say/VBP
they/PRP
were/VBD
skeptical/JJ
./.
``/``
If/IN
USAir/NNP
is/VBZ
worth/JJ
80/CD
as/IN
a/DT
takeover/NN
and/CC
the/DT
stock/NN
went/VBD
to/TO
52/CD
,/,
the/DT
market/NN
was/VBD
saying/VBG
Steinhardt/NNP
's/POS
presence/NN
was/VBD
n't/RB
worth/JJ
anything/NN
,/,
in/IN
terms/NNS
of/IN
getting/VBG
a/DT
deal/NN
done/VBN
,/,
''/''
says/VBZ
a/DT
veteran/JJ
takeover/NN
speculator/NN
./.
Traders/NNS
say/VBP
this/DT
all/DT
goes/VBZ
to/TO
show/VB
that/IN
even/RB
the/DT
smartest/JJS
money/NN
manager/NN
can/MD
get/VB
infected/VBN
with/IN
crowd/NN
passions/NNS
./.
In/IN
trying/VBG
to/TO
raid/VB
USAir/NNP
,/,
Mr./NNP
Steinhardt/NNP
abandoned/VBD
his/PRP$
usual/JJ
role/NN
as/IN
a/DT
passive/JJ
investor/NN
,/,
and/CC
ran/VBD
into/IN
snags/NNS
./.
Moreover/RB
,/,
unlike/IN
Mr./NNP
Buffett/NNP
,/,
who/WP
often/RB
holds/VBZ
big/JJ
stakes/NNS
in/IN
companies/NNS
for/IN
years/NNS
,/,
Mr./NNP
Steinhardt/NNP
has/VBZ
n't/RB
in/IN
the/DT
past/NN
done/VBN
much/JJ
long-term/JJ
investing/NN
./.
Mr./NNP
Steinhardt/NNP
,/,
who/WP
runs/VBZ
about/IN
$/$
1.7/CD
billion/CD
for/IN
Steinhardt/NNP
Partners/NNPS
,/,
made/VBD
his/PRP$
name/NN
as/IN
a/DT
gunslinging/VBG
trader/NN
,/,
moving/VBG
in/IN
and/CC
out/IN
of/IN
stocks/NNS
with/IN
agility/NN
--/:
enriching/VBG
himself/PRP
and/CC
his/PRP$
investment/NN
clients/NNS
./.
Meanwhile/RB
,/,
his/PRP$
big/JJ
losses/NNS
,/,
for/IN
instance/NN
in/IN
1987/CD
's/POS
crash/NN
,/,
generally/RB
have/VB
been/VBN
trading/NN
losses/NNS
./.
So/CC
,/,
some/DT
see/VB
a/DT
special/JJ
irony/NN
in/IN
the/DT
fact/NN
that/IN
Mr./NNP
Steinhardt/NNP
,/,
the/DT
trader/NN
,/,
now/RB
is/VBZ
encumbered/VBN
with/IN
a/DT
massive/JJ
,/,
illiquid/JJ
airline/NN
holding/NN
./.
Analysts/NNS
say/VBP
USAir/NNP
stock/NN
might/MD
lose/VB
four/CD
or/CC
five/CD
points/NNS
if/IN
the/DT
Steinhardt/NNP
stake/NN
was/VBD
dumped/VBN
all/DT
at/IN
once/RB
./.
As/IN
a/DT
result/NN
,/,
Mr./NNP
Steinhardt/NNP
must/MD
reconcile/VB
himself/PRP
to/TO
selling/VBG
USAir/NNP
at/IN
a/DT
loss/NN
,/,
or/CC
to/TO
holding/VBG
the/DT
shares/NNS
as/IN
an/DT
old-fashioned/JJ
investment/NN
./.
``/``
Long-term/JJ
investing/NN
--/:
that/DT
's/VBZ
not/RB
Steinhardt/NNP
's/POS
style/NN
,/,
''/''
chuckles/VBZ
an/DT
investor/NN
who/WP
once/RB
worked/VBD
at/IN
Steinhardt/NNP
Partners/NNPS
./.
``/``
He/PRP
does/VBZ
n't/RB
usually/RB
risk/VB
that/IN
much/RB
unless/IN
he/PRP
thinks/VBZ
he/PRP
has/VBZ
an/DT
ace/NN
in/IN
the/DT
hole/NN
,/,
''/''
adds/VBZ
another/DT
Steinhardt/NNP
Partners/NNP
alumnus/NN
./.
In/IN
recent/JJ
days/NNS
,/,
traders/NNS
say/VBP
USAir/NNP
has/VBZ
been/VBN
buying/VBG
its/PRP$
own/JJ
shares/NNS
,/,
as/IN
part/NN
of/IN
a/DT
program/NN
to/TO
retire/VB
about/IN
eight/CD
million/CD
USAir/NNP
shares/NNS
,/,
though/IN
the/DT
carrier/NN
wo/MD
n't/RB
discuss/VB
its/PRP$
buy-back/JJ
program/NN
./.
If/IN
USAir/NNP
stepped/VBD
up/RP
its/PRP$
share/NN
purchases/NNS
,/,
that/WDT
might/MD
be/VB
a/DT
way/NN
for/IN
Mr./NNP
Steinhardt/NNP
to/TO
get/VB
out/RB
,/,
says/VBZ
Timothy/NNP
Pettee/NNP
,/,
a/DT
Merrill/NNP
Lynch/NNP
analyst/NN
./.
But/CC
USAir/NNP
might/MD
not/RB
want/VB
to/TO
help/VB
Mr./NNP
Steinhardt/NNP
,/,
he/PRP
adds/VBZ
./.
In/IN
1987/CD
,/,
USAir/NNP
Chairman/NNP
Edwin/NNP
Colodny/NNP
stonewalled/VBD
when/WRB
Trans/NNP
World/NNP
Airlines/NNPS
Chairman/NNP
Carl/NNP
Icahn/NNP
threatened/VBD
to/TO
take/VB
over/IN
the/DT
carrier/NN
./.
Mr./NNP
Icahn/NNP
,/,
a/DT
much/RB
more/RBR
practiced/JJ
raider/NN
than/IN
Mr./NNP
Steinhardt/NNP
,/,
eventually/RB
sold/VBD
a/DT
big/JJ
USAir/NNP
stake/NN
at/IN
a/DT
tiny/JJ
profit/NN
through/IN
Bear/NNP
,/,
Stearns/NNP
./.
Mr./NNP
Steinhardt/NNP
also/RB
could/MD
take/VB
that/DT
route/NN
./.
He/PRP
confers/VBZ
big/JJ
trading/NN
commissions/NNS
on/IN
Wall/NNP
Street/NNP
firms/NNS
./.
However/RB
,/,
with/IN
airline/NN
stocks/NNS
cratering/VBG
,/,
he/PRP
might/MD
not/RB
get/VB
a/DT
very/RB
good/JJ
price/NN
for/IN
his/PRP$
shares/NNS
,/,
traders/NNS
say/VBP
./.
Especially/RB
galling/JJ
for/IN
Mr./NNP
Steinhardt/NNP
,/,
say/VBP
people/NNS
close/JJ
to/TO
him/PRP
,/,
is/VBZ
that/IN
USAir/NNP
's/POS
Mr./NNP
Colodny/NNP
wo/MD
n't/RB
even/RB
take/VB
his/PRP$
telephone/NN
calls/NNS
./.
While/IN
USAir/NNP
is/VBZ
n't/RB
considered/VBN
absolutely/RB
takeover-proof/JJ
,/,
its/PRP$
defenses/NNS
,/,
including/VBG
the/DT
sale/NN
in/IN
August/NNP
of/IN
a/DT
12/CD
%/NN
stake/NN
in/IN
the/DT
company/NN
to/TO
Mr./NNP
Buffett/NNP
's/POS
Berkshire/NNP
Hathaway/NNP
,/,
are/VBP
pretty/RB
strong/JJ
./.
USAir/NNP
's/POS
deal/NN
with/IN
Mr./NNP
Buffett/NNP
``/``
was/VBD
n't/RB
exactly/RB
a/DT
shining/VBG
example/NN
of/IN
shareholder/NN
democracy/NN
,/,
''/''
Mr./NNP
Steinhardt/NNP
says/VBZ
./.
Since/IN
last/JJ
April/NNP
,/,
the/DT
investor/NN
has/VBZ
made/VBN
seven/CD
so-called/JJ
13D/CD
filings/NNS
in/IN
USAir/NNP
,/,
as/IN
he/PRP
bought/VBD
and/CC
sold/VBD
the/DT
company/NN
's/POS
stock/NN
./.
Such/JJ
disclosures/NNS
of/IN
big/JJ
holdings/NNS
often/RB
are/VBP
used/VBN
by/IN
raiders/NNS
to/TO
try/VB
to/TO
scare/VB
a/DT
company/NN
's/POS
managers/NNS
,/,
and/CC
to/TO
stir/VB
interest/NN
in/IN
the/DT
stock/NN
./.
But/CC
of/IN
course/NN
it/PRP
would/MD
be/VB
highly/RB
unusual/JJ
for/IN
an/DT
investment/NN
fund/NN
such/JJ
as/IN
Steinhardt/NNP
Partners/NNPS
to/TO
take/VB
over/RP
a/DT
company/NN
./.
USAir/NNP
and/CC
Mr./NNP
Buffett/NNP
wo/MD
n't/RB
talk/VB
about/IN
Mr./NNP
Steinhardt/NNP
at/IN
all/DT
./.
Analysts/NNS
say/VBP
USAir/NNP
has/VBZ
great/JJ
promise/NN
./.
By/IN
the/DT
second/JJ
half/NN
of/IN
1990/CD
,/,
USAir/NNP
stock/NN
could/MD
hit/VB
60/CD
,/,
says/VBZ
Helane/NNP
Becker/NNP
of/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
./.
She/PRP
thinks/VBZ
traders/NNS
should/MD
buy/VB
the/DT
stock/NN
if/IN
it/PRP
tumbles/VBZ
to/TO
35/CD
./.
But/CC
meanwhile/RB
,/,
USAir/NN
is/VBZ
expected/VBN
to/TO
show/VB
losses/NNS
or/CC
lackluster/JJ
profit/NN
for/IN
several/JJ
quarters/NNS
as/IN
it/PRP
tries/VBZ
to/TO
digest/VB
Piedmont/NNP
Airlines/NNPS
,/,
which/WDT
it/PRP
acquired/VBD
./.
Moreover/RB
,/,
some/DT
investors/NNS
think/VBP
a/DT
recession/NN
or/CC
renewed/VBN
airfare/NN
wars/NNS
will/MD
pummel/VB
airline/NN
stocks/NNS
in/IN
coming/VBG
months/NNS
./.
However/RB
,/,
Mr./NNP
Steinhardt/NNP
says/VBZ
he/PRP
's/VBZ
``/``
comfortable/JJ
holding/VBG
USAir/NNP
as/IN
an/DT
investment/NN
./.
''/''
While/IN
he/PRP
has/VBZ
bought/VBN
and/CC
sold/VBN
some/DT
USAir/NNP
shares/NNS
in/IN
recent/JJ
days/NNS
,/,
he/PRP
says/VBZ
that/IN
contrary/JJ
to/TO
rumors/NNS
,/,
he/PRP
has/VBZ
n't/RB
tried/VBN
to/TO
unload/VB
his/PRP$
holding/NN
./.
Mr./NNP
Steinhardt/NNP
adds/VBZ
that/IN
he/PRP
bought/VBD
USAir/NNP
stock/NN
earlier/RB
this/DT
year/NN
as/IN
``/``
part/NN
of/IN
a/DT
fundamental/JJ
investment/NN
in/IN
the/DT
airline/NN
group/NN
./.
''/''
In/IN
1989/CD
,/,
Mr./NNP
Steinhardt/NNP
says/VBZ
he/PRP
made/VBD
money/NN
trading/VBG
in/RP
Texas/NNP
Air/NNP
,/,
AMR/NNP
and/CC
UAL/NNP
./.
Overall/JJ
,/,
his/PRP$
investments/NNS
so/RB
far/RB
this/DT
year/NN
are/VBP
showing/VBG
gains/NNS
of/IN
about/IN
20/CD
%/NN
,/,
he/PRP
adds/VBZ
./.
Does/NNP
Mr./NNP
Steinhardt/NNP
regret/VB
his/PRP$
incursion/NN
into/IN
the/DT
takeover-threat/NN
game/NN
?/.
People/NNS
close/RB
to/TO
the/DT
investor/NN
say/VBP
that/DT
was/VBD
an/DT
experiment/NN
he/PRP
is/VBZ
unlikely/JJ
to/TO
repeat/VB
./.
``/``
I/PRP
do/VBP
n't/RB
think/VB
you/PRP
'll/MD
find/VB
I/PRP
'm/VBP
making/VBG
a/DT
radical/JJ
change/NN
in/IN
my/PRP$
traditional/JJ
investment/NN
style/NN
,/,
''/''
Mr./NNP
Steinhardt/NNP
says/VBZ
./.
Addington/NNP
Resources/NNPS
Inc./NNP
said/VBD
it/PRP
called/VBD
for/IN
redemption/NN
on/IN
Nov./NNP
21/CD
its/PRP$
$/$
25.8/CD
million/CD
outstanding/JJ
of/IN
8/CD
%/NN
convertible/JJ
subordinated/JJ
debentures/NNS
due/JJ
2013/CD
./.
The/DT
debentures/NNS
were/VBD
issued/VBN
in/IN
the/DT
face/NN
amount/NN
of/IN
$/$
46/CD
million/CD
on/IN
July/NNP
11/CD
,/,
1988/CD
,/,
the/DT
Ashland/NNP
,/,
Ky./NNP
,/,
coal/NN
mining/NN
,/,
water/NN
transportation/NN
and/CC
construction/NN
company/NN
said/VBD
./.
The/DT
company/NN
said/VBD
the/DT
redemption/NN
is/VBZ
permitted/VBN
because/IN
the/DT
price/NN
of/IN
Addington/NNP
's/POS
stock/NN
has/VBZ
equaled/VBN
or/CC
exceeded/VBN
$/$
19.60/CD
for/IN
20/CD
consecutive/JJ
trading/NN
days/NNS
,/,
a/DT
condition/NN
set/VBN
in/IN
the/DT
terms/NNS
of/IN
the/DT
debentures/NNS
./.
Debenture/NN
holders/NNS
are/VBP
expected/VBN
to/TO
convert/VB
most/JJS
of/IN
the/DT
debentures/NNS
into/IN
common/JJ
because/IN
the/DT
value/NN
of/IN
the/DT
stock/NN
received/VBN
in/IN
a/DT
conversion/NN
would/MD
exceed/VB
the/DT
$/$
1,103.11/CD
redemption/NN
price/NN
./.
Commodore/NNP
International/NNP
Ltd./NNP
said/VBD
it/PRP
will/MD
report/VB
a/DT
loss/NN
for/IN
the/DT
first/JJ
quarter/NN
ended/VBN
Sept./NNP
30/CD
because/IN
sales/NNS
of/IN
personal/JJ
computers/NNS
for/IN
the/DT
home/NN
market/NN
remained/VBD
weak/JJ
in/IN
some/DT
major/JJ
countries/NNS
./.
That/DT
will/MD
mark/VB
the/DT
second/JJ
consecutive/JJ
quarterly/JJ
loss/NN
for/IN
Commodore/NNP
and/CC
will/MD
raise/VB
additional/JJ
questions/NNS
about/IN
whether/IN
it/PRP
can/MD
sustain/VB
the/DT
turnaround/NN
it/PRP
had/VBD
seemed/VBN
to/TO
be/VB
engineering/NN
./.
Commodore/NNP
,/,
West/NNP
Chester/NNP
,/,
Pa./NNP
,/,
had/VBD
said/VBN
in/IN
August/NNP
that/IN
it/PRP
was/VBD
consolidating/VBG
manufacturing/NN
to/TO
cut/VB
costs/NNS
and/CC
expected/VBN
to/TO
be/VB
profitable/JJ
in/IN
the/DT
fiscal/JJ
first/JJ
quarter/NN
./.
Commodore/NNP
said/VBD
that/DT
its/PRP$
announcement/NN
is/VBZ
based/VBN
on/IN
preliminary/JJ
information/NN
and/CC
that/IN
the/DT
situation/NN
could/MD
look/VB
different/JJ
by/IN
the/DT
time/NN
final/JJ
results/NNS
are/VBP
announced/VBN
early/JJ
next/JJ
month/NN
./.
In/IN
fact/NN
,/,
Commodore/NNP
's/POS
fiscal/JJ
fourth-quarter/JJ
loss/NN
was/VBD
$/$
2/CD
million/CD
narrower/JJR
than/IN
Commodore/NNP
had/VBD
expected/VBN
a/DT
few/JJ
weeks/NNS
after/IN
the/DT
quarter/NN
closed/VBD
./.
Still/RB
,/,
even/RB
results/NNS
approaching/VBG
break-even/NN
would/MD
mark/VB
a/DT
sharp/JJ
weakening/NN
compared/VBN
with/IN
fiscal/JJ
1989/CD
first-quarter/JJ
earnings/NNS
of/IN
$/$
9.6/CD
million/CD
,/,
or/CC
30/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
sales/NNS
of/IN
$/$
200.2/CD
million/CD
./.
Reflecting/VBG
concerns/NNS
about/IN
Commodore/NNP
's/POS
outlook/NN
,/,
its/PRP$
stock/NN
has/VBZ
plunged/VBN
more/JJR
than/IN
50/CD
%/NN
since/IN
May/NNP
,/,
closing/VBG
yesterday/NN
unchanged/JJ
at/IN
$/$
8.875/CD
a/DT
share/NN
in/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
The/DT
price/NN
can/MD
be/VB
expected/VBN
to/TO
erode/VB
further/RBR
,/,
because/IN
the/DT
loss/NN
estimate/NN
came/VBD
after/IN
the/DT
market/NN
closed/VBD
./.
Commodore/NNP
has/VBZ
seemed/VBN
to/TO
be/VB
setting/VBG
the/DT
stage/NN
recently/RB
for/IN
progress/NN
in/IN
the/DT
U.S./NNP
,/,
where/WRB
its/PRP$
personal-computer/NN
sales/NNS
have/VBP
been/VBN
so/RB
dismal/JJ
for/IN
years/NNS
that/IN
Commodore/NNP
is/VBZ
close/JJ
to/TO
dropping/VBG
off/RB
research/NN
firms/NNS
'/POS
market-share/NN
charts/NNS
./.
Commodore/NNP
has/VBZ
assembled/VBN
an/DT
experienced/JJ
management/NN
team/NN
,/,
it/PRP
has/VBZ
persuaded/VBN
many/JJ
more/JJR
dealers/NNS
to/TO
carry/VB
its/PRP$
products/NNS
and/CC
it/PRP
has/VBZ
unleashed/VBN
a/DT
slick/JJ
advertising/NN
campaign/NN
./.
But/CC
those/DT
represent/VBP
long-term/JJ
strategies/NNS
that/WDT
probably/RB
wo/MD
n't/RB
succeed/VB
quickly/RB
,/,
even/RB
if/IN
they/PRP
turn/VBP
out/RB
to/TO
be/VB
the/DT
right/JJ
ones/NNS
./.
In/IN
the/DT
meantime/NN
,/,
the/DT
strategies/NNS
will/MD
increase/VB
expenses/NNS
./.
Commodore/NNP
had/VBD
been/VBN
counting/VBG
on/IN
its/PRP$
consumer/NN
business/NN
to/TO
stay/VB
sufficiently/RB
healthy/JJ
to/TO
support/VB
its/PRP$
efforts/NNS
in/IN
other/JJ
areas/NNS
--/:
mainly/RB
in/IN
getting/VBG
schools/NNS
and/CC
businesses/NNS
to/TO
use/VB
its/PRP$
Amiga/NNP
,/,
which/WDT
has/VBZ
slick/JJ
graphics/NNS
yet/CC
has/VBZ
been/VBN
slow/JJ
to/TO
catch/VB
on/RB
because/IN
it/PRP
is/VBZ
n't/RB
compatible/JJ
with/IN
Apple/NNP
Computer/NNP
Inc./NNP
or/CC
International/NNP
Business/NNP
Machines/NNP
Corp./NNP
hardware/NN
./.
But/CC
sales/NNS
to/TO
consumers/NNS
have/VBP
become/VBN
difficult/JJ
during/IN
the/DT
past/JJ
several/JJ
months/NNS
,/,
even/RB
in/IN
West/NNP
Germany/NNP
,/,
which/WDT
has/VBZ
been/VBN
by/IN
far/RB
Commodore/NNP
's/POS
strongest/JJS
market/NN
./.
The/DT
Commodore/NNP
64/CD
and/CC
128/CD
,/,
mainly/RB
used/VBN
for/IN
children/NNS
's/POS
educational/JJ
software/NN
and/CC
games/NNS
,/,
had/VBD
surprised/VBN
market/NN
researchers/NNS
by/IN
continuing/VBG
to/TO
produce/VB
strong/JJ
sales/NNS
even/RB
though/IN
other/JJ
low-profit/JJ
personal/JJ
computers/NNS
now/RB
operate/VBP
several/JJ
times/NNS
as/RB
fast/RB
and/CC
have/VBP
much/JJ
more/JJR
memory/NN
./.
Commodore/NNP
has/VBZ
said/VBD
it/PRP
expects/VBZ
sales/NNS
to/TO
rebound/VB
,/,
but/CC
market/NN
researchers/NNS
have/VBP
said/VBD
that/IN
sales/NNS
of/IN
the/DT
low-end/JJ
products/NNS
may/MD
finally/RB
be/VB
trailing/VBG
off/RB
./.
Stock/NN
prices/NNS
closed/VBD
slightly/RB
higher/RBR
in/IN
the/DT
first/JJ
routine/JJ
trading/NN
day/NN
since/IN
Friday/NNP
's/POS
big/JJ
plunge/NN
./.
Some/DT
issues/NNS
were/VBD
affected/VBN
by/IN
Tuesday/NNP
's/POS
devastating/JJ
earthquake/NN
in/IN
the/DT
San/NNP
Francisco/NNP
area/NN
./.
Activity/NN
continued/VBD
to/TO
slow/VB
from/IN
the/DT
hectic/JJ
pace/NN
set/VBN
during/IN
the/DT
market/NN
's/POS
plunge/NN
late/JJ
Friday/NNP
and/CC
its/PRP$
rebound/NN
Monday/NNP
,/,
as/IN
players/NNS
began/VBD
to/TO
set/VB
their/PRP$
sights/NNS
on/IN
events/NNS
coming/VBG
later/RB
this/DT
week/NN
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
drifted/VBD
through/IN
the/DT
session/NN
within/IN
a/DT
trading/NN
range/NN
of/IN
about/IN
30/CD
points/NNS
before/IN
closing/VBG
with/IN
a/DT
gain/NN
of/IN
4.92/CD
at/IN
2643.65/CD
./.
Broader/JJR
averages/NNS
also/RB
posted/VBD
modest/JJ
gains/NNS
./.
Standard/NNP
&/CC
Poor/NNP
's/POS
500-Stock/NNP
Index/NNP
rose/VBD
0.60/CD
to/TO
341.76/CD
,/,
the/DT
Dow/NNP
Jones/NNP
Equity/NNP
Market/NNP
Index/NNP
rose/VBD
0.71/CD
to/TO
320.54/CD
and/CC
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
Composite/NNP
Index/NNP
gained/VBD
0.43/CD
to/TO
189.32/CD
./.
Some/DT
822/CD
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
issues/NNS
advanced/VBD
in/IN
price/NN
,/,
while/IN
668/CD
declined/VBD
./.
But/CC
the/DT
Dow/NNP
Jones/NNP
Transportation/NNP
Average/NNP
went/VBD
down/RB
for/IN
the/DT
seventh/JJ
consecutive/JJ
session/NN
,/,
due/RB
largely/RB
to/TO
further/VB
selling/VBG
in/IN
UAL/NNP
./.
The/DT
average/NN
dropped/VBD
6.40/CD
to/TO
1247.87/CD
and/CC
has/VBZ
now/RB
lost/VBN
21.7/CD
%/NN
of/IN
its/PRP$
value/NN
since/IN
the/DT
losing/JJ
streak/NN
began/VBD
Oct./NNP
10/CD
./.
Big/NNP
Board/NNP
volume/NN
dropped/VBD
to/TO
166,900,000/CD
shares/NNS
,/,
in/IN
line/NN
with/IN
the/DT
level/NN
of/IN
trading/NN
over/IN
the/DT
past/JJ
few/JJ
weeks/NNS
,/,
from/IN
224.1/CD
million/CD
Tuesday/NNP
./.
Traders/NNS
cited/VBD
anticipation/NN
of/IN
the/DT
consumer/NN
price/NN
report/NN
for/IN
September/NNP
,/,
due/JJ
today/NN
,/,
and/CC
tomorrow/NN
's/POS
expiration/NN
of/IN
October/NNP
stock-index/NN
futures/NNS
and/CC
options/NNS
as/IN
major/JJ
factors/NNS
in/IN
the/DT
slowdown/NN
./.
In/IN
addition/NN
,/,
activity/NN
at/IN
a/DT
number/NN
of/IN
San/NNP
Francisco-based/JJ
brokerage/NN
houses/NNS
was/VBD
curtailed/VBN
as/IN
a/DT
result/NN
of/IN
the/DT
earthquake/NN
,/,
which/WDT
knocked/VBD
out/RP
power/NN
lines/NNS
and/CC
telephone/NN
service/NN
throughout/IN
the/DT
Bay/NNP
area/NN
./.
Stocks/NNS
retreated/VBD
to/TO
session/NN
lows/NNS
just/RB
after/IN
the/DT
opening/NN
amid/IN
worries/NNS
about/IN
the/DT
market/NN
impact/NN
of/IN
the/DT
quake/NN
,/,
but/CC
quickly/RB
snapped/VBD
back/RB
to/TO
higher/JJR
levels/NNS
with/IN
the/DT
help/NN
of/IN
futures-related/JJ
program/NN
buying/NN
./.
The/DT
early/JJ
move/NN
essentially/RB
established/VBD
the/DT
day/NN
's/POS
trading/NN
range/NN
,/,
and/CC
traders/NNS
said/VBD
they/PRP
saw/VBD
little/RB
of/IN
the/DT
program/NN
activity/NN
that/WDT
has/VBZ
battered/VBN
the/DT
market/NN
recently/RB
./.
``/``
I/PRP
did/VBD
n't/RB
expect/VB
it/PRP
to/TO
be/VB
this/DT
quiet/NN
./.
I/PRP
expected/VBD
to/TO
see/VB
more/JJR
volatility/NN
as/IN
some/DT
of/IN
the/DT
institutions/NNS
who/WP
were/VBD
spooked/VBN
last/JJ
Friday/NNP
did/VBD
some/DT
selling/NN
,/,
''/''
said/VBD
Raymond/NNP
F./NNP
DeVoe/NNP
,/,
a/DT
market/NN
strategist/NN
at/IN
Legg/NNP
Mason/NNP
Wood/NNP
Walker/NNP
,/,
Baltimore/NNP
./.
Mr./NNP
DeVoe/NNP
said/VBD
he/PRP
expects/VBZ
prices/NNS
to/TO
show/VB
some/DT
renewed/JJ
instability/NN
over/IN
the/DT
next/JJ
few/JJ
sessions/NNS
as/IN
institutions/NNS
re-evaluate/VBP
their/PRP$
stance/NN
toward/IN
the/DT
market/NN
in/IN
light/NN
of/IN
its/PRP$
decline/NN
./.
``/``
I/PRP
would/MD
suspect/VB
that/IN
a/DT
lot/NN
of/IN
investment/NN
committees/NNS
are/VBP
looking/VBG
into/IN
whether/IN
(/(
they/PRP
stocks/NNS
at/IN
all/DT
,/,
''/''
he/PRP
said/VBD
./.
Insurance/NN
stocks/NNS
were/VBD
sold/VBN
at/IN
the/DT
opening/NN
amid/IN
concerns/NNS
about/IN
the/DT
level/NN
of/IN
damage/NN
claims/NNS
the/DT
companies/NNS
would/MD
receive/VB
as/IN
a/DT
result/NN
of/IN
the/DT
earthquake/NN
./.
But/CC
those/DT
issues/NNS
recovered/VBD
quickly/RB
and/CC
turned/VBD
higher/RBR
because/IN
of/IN
expectations/NNS
that/IN
the/DT
quake/NN
and/CC
the/DT
recent/JJ
Hurricane/NNP
Hugo/NNP
would/MD
set/VB
the/DT
stage/NN
for/IN
an/DT
increase/NN
in/IN
premium/NN
rates/NNS
./.
Issues/NNS
of/IN
insurance/NN
brokers/NNS
were/VBD
especially/RB
strong/JJ
./.
Marsh/NNP
&/CC
McLennan/NNP
advanced/VBD
3/CD
1\/8/CD
to/TO
75/CD
7\/8/CD
,/,
Alexander/NNP
&/CC
Alexander/NNP
Services/NNP
climbed/VBD
2/CD
to/TO
32/CD
and/CC
Corroon/NNP
&/CC
Black/NNP
firmed/VBD
1/CD
7\/8/CD
to/TO
37/CD
1\/2/CD
./.
Elsewhere/RB
in/IN
the/DT
group/NN
,/,
General/NNP
Re/NNP
rose/VBD
2/CD
3\/4/CD
to/TO
86/CD
1\/2/CD
,/,
American/NNP
International/NNP
Group/NNP
gained/VBD
3/CD
1\/4/CD
to/TO
102/CD
5\/8/CD
,/,
Aetna/NNP
Life/NNP
&/CC
Casualty/NNP
added/VBD
2/CD
3\/8/CD
to/TO
59/CD
1\/2/CD
and/CC
Cigna/NNP
advanced/VBD
7\/8/CD
to/TO
62/CD
1\/2/CD
./.
Loews/NNP
,/,
the/DT
parent/NN
of/IN
CNA/NNP
Financial/NNP
,/,
rose/VBD
1/CD
3\/8/CD
to/TO
123/CD
1\/8/CD
./.
Companies/NNS
in/IN
the/DT
construction/NN
,/,
engineering/NN
and/CC
building-products/NNS
sectors/NNS
were/VBD
among/IN
other/JJ
beneficiaries/NNS
of/IN
earthquake-related/JJ
buying/NN
./.
The/DT
heavy-construction/NN
sector/NN
was/VBD
the/DT
session/NN
's/POS
best/JJS
performer/NN
among/IN
Dow/NNP
Jones/NNP
industry/NN
groups/NNS
;/:
Fluor/NNP
rose/VBD
3\/4/CD
to/TO
33/CD
3\/8/CD
,/,
Morrison/NNP
Knudsen/NNP
gained/VBD
2/CD
1\/4/CD
to/TO
44/CD
1\/8/CD
,/,
Foster/NNP
Wheeler/NNP
added/VBD
3\/8/CD
to/TO
18/CD
1\/4/CD
and/CC
Ameron/NNP
climbed/VBD
2/CD
3\/8/CD
to/TO
39/CD
3\/4/CD
./.
Among/IN
engineering/NN
firms/NNS
,/,
CRS/NNP
Sirrine/NNP
rose/VBD
5\/8/CD
to/TO
34/CD
1\/4/CD
on/IN
the/DT
Big/NNP
Board/NNP
and/CC
four/CD
others/NNS
rallied/VBD
on/IN
the/DT
American/NNP
Stock/NNP
Exchange/NNP
:/:
Jacobs/NNP
Engineering/NNP
Group/NNP
,/,
which/WDT
gained/VBD
1/CD
1\/8/CD
to/TO
25/CD
3\/8/CD
,/,
Greiner/NNP
Engineering/NNP
,/,
which/WDT
rose/VBD
3/CD
1\/2/CD
to/TO
22/CD
1\/2/CD
;/:
Michael/NNP
Baker/NNP
,/,
which/WDT
added/VBD
1/CD
1\/4/CD
to/TO
15/CD
1\/4/CD
,/,
and/CC
American/NNP
Science/NNP
&/CC
Engineering/NNP
,/,
up/RB
1\/2/CD
to/TO
8/CD
1\/2/CD
./.
Within/IN
the/DT
building-materials/NNS
group/NN
,/,
Georgia-Pacific/NNP
climbed/VBD
1/CD
1\/4/CD
to/TO
58/CD
and/CC
Louisiana-Pacific/NNP
added/VBD
1/CD
to/TO
40/CD
3\/4/CD
after/IN
Merrill/NNP
Lynch/NNP
recommended/VBD
the/DT
forest-products/NNS
issues/NNS
./.
CalMat/NNP
advanced/VBN
2/CD
3\/4/CD
to/TO
28/CD
3\/4/CD
,/,
Lone/NNP
Star/NNP
Industries/NNPS
gained/VBD
1/CD
3\/4/CD
to/TO
29/CD
1\/4/CD
,/,
Lafarge/NNP
rose/VBD
1/CD
to/TO
19/CD
1\/2/CD
,/,
Southdown/NNP
added/VBD
5\/8/CD
to/TO
24/CD
5\/8/CD
and/CC
Eljer/NNP
Industries/NNPS
rose/VBD
1/CD
1\/4/CD
to/TO
24/CD
7\/8/CD
./.
Pacific/NNP
Gas/NNP
&/CC
Electric/NNP
fell/VBD
3\/8/CD
to/TO
19/CD
5\/8/CD
in/IN
Big/NNP
Board/NNP
composite/JJ
trading/NN
of/IN
1.7/CD
million/CD
shares/NNS
and/CC
Pacific/NNP
Telesis/NNP
Group/NNP
slipped/VBD
5\/8/CD
to/TO
44/CD
5\/8/CD
as/IN
the/DT
companies/NNS
worked/VBD
to/TO
restore/VB
service/NN
to/TO
areas/NNS
affected/VBN
by/IN
the/DT
quake/NN
./.
Chevron/NNP
added/VBD
1/CD
to/TO
65/CD
./.
The/DT
company/NN
,/,
based/VBN
in/IN
San/NNP
Francisco/NNP
,/,
said/VBD
it/PRP
had/VBD
to/TO
shut/VB
down/RP
a/DT
crude-oil/NN
pipeline/NN
in/IN
the/DT
Bay/NNP
area/NN
to/TO
check/VB
for/IN
leaks/NNS
but/CC
added/VBD
that/DT
its/PRP$
refinery/NN
in/IN
nearby/JJ
Richmond/NNP
,/,
Calif./NNP
,/,
was/VBD
undamaged/JJ
./.
Other/JJ
companies/NNS
based/VBN
in/IN
the/DT
area/NN
include/VB
Hewlett-Packard/NNP
,/,
which/WDT
rose/VBD
1\/4/CD
to/TO
49/CD
;/:
National/NNP
Semiconductor/NNP
,/,
which/WDT
went/VBD
up/RB
1\/4/CD
to/TO
7/CD
5\/8/CD
,/,
and/CC
Genentech/NNP
,/,
which/WDT
eased/VBD
1\/4/CD
to/TO
19/CD
5\/8/CD
./.
None/NN
of/IN
the/DT
firms/NNS
reported/VBD
any/DT
major/JJ
damage/NN
to/TO
facilities/NNS
as/IN
a/DT
result/NN
of/IN
the/DT
quake/NN
./.
BankAmerica/NNP
eased/VBD
1\/2/CD
to/TO
31/CD
7\/8/CD
and/CC
Wells/NNP
Fargo/NNP
lost/VBD
1\/2/CD
to/TO
81/CD
1\/2/CD
;/:
the/DT
two/CD
bank/NN
holding/NN
companies/NNS
,/,
based/VBN
in/IN
San/NNP
Francisco/NNP
,/,
were/VBD
forced/VBN
to/TO
curtail/VB
some/DT
operations/NNS
due/JJ
to/TO
the/DT
temblor/NN
./.
Among/IN
California/NNP
savings-and-loan/NN
stocks/NNS
,/,
H.F./NNP
Ahmanson/NNP
eased/VBD
3\/8/CD
to/TO
22/CD
1\/4/CD
,/,
CalFed/NNP
slid/VBD
3\/4/CD
to/TO
24/CD
1\/8/CD
,/,
Great/NNP
Western/NNP
Financial/NNP
dropped/VBD
1\/2/CD
to/TO
21/CD
1\/4/CD
and/CC
Golden/NNP
West/NNP
Financial/NNP
fell/VBD
5\/8/CD
to/TO
29/CD
1\/4/CD
./.
UAL/NNP
,/,
the/DT
parent/NN
company/NN
of/IN
United/NNP
Airlines/NNPS
,/,
swung/VBD
within/IN
a/DT
14-point/JJ
range/NN
during/IN
the/DT
course/NN
of/IN
the/DT
session/NN
before/IN
closing/VBG
at/IN
191/CD
3\/4/CD
,/,
down/RB
6/CD
1\/4/CD
,/,
on/IN
2.3/CD
million/CD
shares/NNS
./.
British/NNP
Airways/NNPS
,/,
a/DT
member/NN
of/IN
the/DT
group/NN
that/WDT
had/VBD
offered/VBN
$/$
300/CD
a/DT
share/NN
for/IN
UAL/NNP
in/IN
a/DT
leveraged/JJ
buy-out/NN
,/,
said/VBD
it/PRP
had/VBD
yet/RB
to/TO
receive/VB
a/DT
revised/JJ
proposal/NN
and/CC
it/PRP
was/VBD
``/``
in/IN
no/DT
way/NN
committed/VBN
''/''
to/TO
the/DT
completion/NN
of/IN
a/DT
bid/NN
./.
Separately/RB
,/,
investor/NN
Marvin/NNP
Davis/NNP
withdrew/VBD
his/PRP$
backup/JJ
$/$
300-a-share/JJ
takeover/NN
offer/NN
./.
While/IN
UAL/NNP
faltered/VBD
,/,
AMR/NNP
,/,
the/DT
parent/NN
of/IN
American/NNP
Airlines/NNPS
,/,
pulled/VBD
out/RB
of/IN
its/PRP$
recent/JJ
nosedive/JJ
by/IN
rising/VBG
3\/4/CD
to/TO
74/CD
./.
The/DT
stock/NN
had/VBD
been/VBN
on/IN
the/DT
decline/NN
since/IN
the/DT
financing/NN
for/IN
the/DT
UAL/NNP
buy-out/NN
fell/VBD
through/RB
on/IN
Friday/NNP
and/CC
developer/NN
Donald/NNP
Trump/NNP
subsequently/RB
withdrew/VBD
a/DT
takeover/NN
offer/NN
of/IN
$/$
120/CD
a/DT
share/NN
for/IN
AMR/NNP
./.
Also/RB
,/,
AMR/NNP
was/VBD
the/DT
most/RBS
active/JJ
Big/NNP
Board/NNP
issue/NN
;/:
2.8/CD
million/CD
shares/NNS
changed/VBD
hands/NNS
./.
GTE/NNP
added/VBD
1/CD
1\/4/CD
to/TO
65/CD
3\/8/CD
./.
PaineWebber/NNP
repeated/VBD
a/DT
buy/JJ
recommendation/NN
on/IN
the/DT
stock/NN
and/CC
raised/VBD
its/PRP$
1990/CD
earnings/NNS
estimate/NN
by/IN
35/CD
cents/NNS
a/DT
share/NN
,/,
to/TO
$/$
5.10/CD
./.
Colgate-Palmolive/NNP
advanced/VBD
1/CD
5\/8/CD
to/TO
63/CD
after/IN
saying/VBG
it/PRP
was/VBD
comfortable/JJ
with/IN
analysts/NNS
'/POS
projections/NNS
that/IN
third-quarter/JJ
net/JJ
income/NN
from/IN
continuing/VBG
operations/NNS
would/MD
be/VB
between/IN
95/CD
cents/NNS
and/CC
$/$
1.05/CD
a/DT
share/NN
,/,
up/RB
from/IN
69/CD
cents/NNS
a/DT
year/NN
ago/RB
./.
Springs/NNPS
Industries/NNPS
dropped/VBD
1/CD
3\/8/CD
to/TO
36/CD
./.
Analysts/NNS
at/IN
several/JJ
brokerage/NN
firms/NNS
lowered/VBD
their/PRP$
1989/CD
and/CC
1990/CD
earnings/NNS
estimates/NNS
on/IN
the/DT
company/NN
after/IN
its/PRP$
third-quarter/JJ
results/NNS
proved/VBD
disappointing/JJ
./.
Trinova/NNP
third-quarter/JJ
loss/NN
after/IN
a/DT
charge/NN
for/IN
a/DT
planned/JJ
restructuring/NN
,/,
which/WDT
will/MD
include/VB
the/DT
closing/NN
or/CC
downsizing/NN
of/IN
about/IN
25/CD
%/NN
of/IN
its/PRP$
plants/NNS
and/CC
a/DT
work/NN
force/NN
cut/NN
of/IN
about/IN
1,500/CD
over/IN
three/CD
years/NNS
./.
The/DT
Amex/NNP
Market/NNP
Value/NNP
Index/NNP
snapped/VBD
a/DT
five-session/JJ
losing/NN
streak/NN
by/IN
rising/VBG
2.91/CD
to/TO
378.07/CD
./.
Volume/NN
totaled/VBN
12,500,000/CD
shares/NNS
./.
Carnival/NNP
Cruise/NNP
Lines/NNPS
Class/NN
A/NNP
rose/VBD
1/CD
1\/4/CD
to/TO
22/CD
3\/8/CD
./.
The/DT
company/NN
,/,
citing/VBG
market/NN
conditions/NNS
,/,
postponed/VBD
a/DT
$/$
200/CD
million/CD
debt/NN
offer/NN
./.
Philip/NNP
Morris/NNP
Cos./NNP
posted/VBD
a/DT
20/CD
%/NN
jump/NN
in/IN
third-quarter/JJ
profit/NN
on/IN
a/DT
45/CD
%/NN
revenue/NN
increase/NN
,/,
reflecting/VBG
strength/NN
in/IN
the/DT
company/NN
's/POS
cigarette/NN
,/,
food/NN
and/CC
brewing/NN
businesses/NNS
./.
Net/JJ
income/NN
rose/VBD
to/TO
$/$
748/CD
million/CD
,/,
or/CC
81/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
the/DT
year-earlier/JJ
$/$
621/CD
million/CD
,/,
or/CC
67/CD
cents/NNS
a/DT
share/NN
./.
Per-share/JJ
figures/NNS
have/VBP
been/VBN
adjusted/VBN
for/IN
a/DT
4-for-1/JJ
stock/NN
split/NN
paid/VBN
earlier/RB
this/DT
month/NN
./.
The/DT
New/NNP
York-based/JJ
tobacco/NN
,/,
food/NN
and/CC
beer/NN
concern/NN
said/VBD
revenue/NN
increased/VBN
to/TO
$/$
11.25/CD
billion/CD
from/IN
$/$
7.74/CD
billion/CD
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Philip/NNP
Morris/NNP
closed/VBD
at/IN
$/$
43.375/CD
,/,
up/RB
12.5/CD
cents/NNS
./.
Philip/NNP
Morris/NNP
disclosed/VBD
little/JJ
detailed/JJ
information/NN
about/IN
performance/NN
by/IN
major/JJ
business/NN
lines/NNS
except/VB
to/TO
say/VB
that/IN
most/JJS
,/,
including/VBG
Philip/NNP
Morris/NNP
U.S.A./NNP
,/,
Kraft/NNP
General/NNP
Foods/NNPS
and/CC
Miller/NNP
Brewing/NNP
Co./NNP
,/,
posted/VBD
increased/VBN
revenues/NNS
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
net/NN
increased/VBD
4.4/CD
%/NN
to/TO
$/$
2.08/CD
billion/CD
,/,
or/CC
$/$
2.25/CD
a/DT
share/NN
,/,
from/IN
$/$
2/CD
billion/CD
,/,
which/WDT
included/VBD
$/$
273/CD
million/CD
reflecting/VBG
the/DT
effect/NN
of/IN
an/DT
accounting/NN
change/NN
./.
Granges/NNP
Inc./NNP
,/,
citing/VBG
depressed/JJ
gold/NN
prices/NNS
,/,
said/VBD
it/PRP
plans/VBZ
to/TO
suspend/VB
operations/NNS
for/IN
an/DT
indefinite/JJ
period/NN
at/IN
its/PRP$
Tartan/NNP
gold/NN
mine/NN
in/IN
Manitoba/NNP
./.
Granges/NNS
said/VBD
in/IN
Vancouver/NNP
,/,
British/NNP
Columbia/NNP
,/,
that/IN
the/DT
production/NN
halt/NN
will/MD
be/VB
phased/VBN
in/RB
over/IN
a/DT
10-week/JJ
period/NN
./.
Tartan/NNP
currently/RB
produces/VBZ
gold/NN
at/IN
a/DT
cash/NN
operating/NN
cost/NN
of/IN
$/$
393/CD
an/DT
ounce/NN
,/,
which/WDT
is/VBZ
high/JJ
by/IN
industry/NN
standards/NNS
and/CC
$/$
25/CD
or/CC
so/RB
above/IN
the/DT
current/JJ
spot/NN
price/NN
./.
Granges/NNP
said/VBD
it/PRP
also/RB
plans/VBZ
in/IN
the/DT
third/JJ
quarter/NN
to/TO
write/VB
down/RP
the/DT
carrying/NN
value/NN
of/IN
the/DT
Tartan/NNP
mine/NN
by/IN
2.5/CD
million/CD
Canadian/JJ
dollars/NNS
(/(
US$/$
2.12/CD
million/CD
the/DT
C$/$
6.3/CD
million/CD
carrying/NN
value/NN
of/IN
its/PRP$
Windflower/NNP
gold/NN
property/NN
in/IN
British/NNP
Columbia/NNP
./.
Granges/NNS
did/VBD
n't/RB
say/VB
what/WDT
impact/NN
the/DT
moves/NNS
would/MD
have/VB
on/IN
total/JJ
gold/NN
output/NN
or/CC
earnings/NNS
,/,
and/CC
company/NN
officials/NNS
were/VBD
n't/RB
available/JJ
./.
Computer/NNP
Associates/NNPS
International/NNP
Inc./NNP
,/,
Garden/NNP
City/NNP
,/,
N.Y./NNP
,/,
and/CC
Digital/NNP
Equipment/NNP
Corp./NNP
said/VBD
they/PRP
agreed/VBD
to/TO
jointly/RB
develop/VB
software/NN
to/TO
help/VB
manage/VB
Digital/NNP
's/POS
Vax/NNP
computers/NNS
./.
Computer/NNP
Associates/NNPS
has/VBZ
carved/VBN
out/RP
a/DT
huge/JJ
business/NN
selling/VBG
such/JJ
software/NN
for/IN
use/NN
in/IN
managing/NN
networks/NNS
of/IN
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
computers/NNS
but/CC
needs/VBZ
to/TO
find/VB
new/JJ
markets/NNS
if/IN
it/PRP
is/VBZ
to/TO
maintain/VB
its/PRP$
growth/NN
rate/NN
of/IN
30/CD
%/NN
and/CC
more/JJR
each/DT
year/NN
./.
The/DT
market/NN
for/IN
system-management/NN
software/NN
for/IN
Digital/NNP
's/POS
hardware/NN
is/VBZ
fragmented/VBN
enough/RB
that/IN
a/DT
giant/NN
such/JJ
as/IN
Computer/NNP
Associates/NNPS
should/MD
do/VB
well/RB
there/RB
./.
At/IN
the/DT
same/JJ
time/NN
,/,
the/DT
market/NN
is/VBZ
smaller/JJR
than/IN
the/DT
market/NN
for/IN
IBM-compatible/JJ
software/NN
./.
For/IN
one/CD
thing/NN
,/,
Digital/NNP
,/,
Maynard/NNP
,/,
Mass./NNP
,/,
has/VBZ
sold/VBN
fewer/JJR
machines/NNS
./.
In/IN
addition/NN
,/,
its/PRP$
machines/NNS
are/VBP
typically/RB
easier/JJR
to/TO
operate/VB
,/,
so/IN
customers/NNS
require/VBP
less/JJR
assistance/NN
from/IN
software/NN
./.
Wang/NNP
Laboratories/NNPS
Inc./NNP
,/,
Lowell/NNP
,/,
Mass./NNP
,/,
beset/VBN
by/IN
declining/VBG
demand/NN
for/IN
its/PRP$
computers/NNS
,/,
reported/VBD
a/DT
$/$
62.1/CD
million/CD
,/,
38-cents-a-share/JJ
loss/NN
in/IN
its/PRP$
first/JJ
quarter/NN
ended/VBN
Sept./NNP
30/CD
./.
Revenue/NN
fell/VBD
12.7/CD
%/NN
to/TO
$/$
596.8/CD
million/CD
from/IN
$/$
684/CD
million/CD
,/,
although/IN
some/DT
of/IN
the/DT
decline/NN
was/VBD
caused/VBN
by/IN
discontinued/JJ
operations/NNS
./.
Wang/NNP
had/VBD
previously/RB
forecast/VBN
a/DT
loss/NN
./.
The/DT
company/NN
reiterated/VBD
that/IN
it/PRP
expects/VBZ
another/DT
loss/NN
in/IN
the/DT
second/JJ
quarter/NN
and/CC
for/IN
the/DT
full/JJ
year/NN
,/,
although/IN
it/PRP
expects/VBZ
a/DT
profitable/JJ
fourth/JJ
quarter/NN
./.
A/DT
year/NN
ago/RB
,/,
Wang/NNP
had/VBD
earnings/NNS
of/IN
$/$
13.1/CD
million/CD
,/,
or/CC
eight/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
its/PRP$
first/JJ
quarter/NN
,/,
including/VBG
a/DT
$/$
3.1/CD
million/CD
loss/NN
from/IN
discontinued/JJ
operations/NNS
./.
The/DT
latest/JJS
period/NN
loss/NN
included/VBD
a/DT
$/$
12.9/CD
pretax/JJ
charge/NN
for/IN
severance/NN
payments/NNS
./.
Dayton/NNP
Hudson/NNP
Corp./NNP
said/VBD
it/PRP
accepted/VBD
for/IN
purchase/NN
seven/CD
million/CD
common/JJ
shares/NNS
at/IN
$/$
62.875/CD
each/DT
,/,
under/IN
the/DT
terms/NNS
of/IN
a/DT
Dutch/JJ
auction/NN
self-tender/JJ
offer/NN
./.
The/DT
offer/NN
expired/VBD
at/IN
12:01/CD
a.m./RB
yesterday/NN
./.
In/IN
a/DT
Dutch/JJ
auction/NN
,/,
the/DT
buyer/NN
sets/VBZ
a/DT
price/NN
range/NN
and/CC
holders/NNS
give/VBP
a/DT
price/NN
in/IN
that/DT
range/NN
at/IN
which/WDT
they/PRP
're/VBP
willing/JJ
to/TO
sell/VB
their/PRP$
shares/NNS
./.
The/DT
buyer/NN
then/RB
picks/VBZ
a/DT
price/NN
and/CC
buys/VBZ
shares/NNS
at/IN
that/DT
price/NN
from/IN
holders/NNS
who/WP
offered/VBD
to/TO
sell/VB
at/IN
that/DT
price/NN
or/CC
lower/JJR
./.
Dayton/NNP
Hudson/NNP
's/POS
repurchase/NN
offer/NN
,/,
representing/VBG
about/IN
9/CD
%/NN
of/IN
its/PRP$
common/JJ
shares/NNS
outstanding/JJ
,/,
had/VBD
established/VBN
a/DT
range/NN
of/IN
between/IN
$/$
60/CD
and/CC
$/$
65/CD
for/IN
the/DT
buy-back/NN
./.
Dayton/NNP
Hudson/NNP
said/VBD
it/PRP
accepted/VBD
all/DT
odd-lot/JJ
shares/NNS
tendered/VBN
at/IN
or/CC
below/IN
the/DT
final/JJ
$/$
62.875/CD
price/NN
;/:
the/DT
preliminary/JJ
proration/NN
factor/NN
for/IN
other/JJ
shares/NNS
tendered/VBN
at/IN
or/CC
below/IN
the/DT
final/JJ
price/NN
is/VBZ
98/CD
%/NN
./.
The/DT
Minneapolis-based/JJ
retailer/NN
said/VBD
it/PRP
expects/VBZ
to/TO
pay/VB
for/IN
the/DT
seven/CD
million/CD
shares/NNS
next/IN
Thursday/NNP
./.
Tendered/JJ
shares/NNS
not/RB
purchased/VBN
will/MD
be/VB
returned/VBN
to/TO
holders/NNS
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Dayton/NNP
rose/VBD
$/$
1/CD
to/TO
$/$
61.125/CD
./.
Continental/NNP
Bank/NNP
Corp./NNP
's/POS
third-quarter/JJ
net/JJ
income/NN
slipped/VBD
11/CD
%/NN
despite/IN
a/DT
big/JJ
gain/NN
from/IN
the/DT
sale/NN
of/IN
the/DT
company/NN
's/POS
London/NNP
headquarters/NN
building/NN
./.
The/DT
$/$
55/CD
million/CD
gain/NN
on/IN
the/DT
sale/NN
was/VBD
offset/VBN
by/IN
lower/JJR
interest/NN
income/NN
,/,
poorer/JJR
results/NNS
from/IN
foreign-exchange/JJ
trading/NN
and/CC
a/DT
$/$
9/CD
million/CD
loss/NN
on/IN
the/DT
sale/NN
of/IN
a/DT
unit/NN
,/,
Securities/NNPS
Settlement/NNP
Corp/NNP
./.
Chicago-based/JJ
Continental/NNP
earned/VBD
$/$
65.2/CD
million/CD
,/,
or/CC
$/$
1.04/CD
a/DT
share/NN
,/,
compared/VBN
with/IN
$/$
73.6/CD
million/CD
,/,
or/CC
$/$
1.19/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
./.
The/DT
1988/CD
quarter/NN
also/RB
included/VBD
one-time/JJ
gains/NNS
totaling/VBG
about/IN
$/$
35/CD
million/CD
./.
The/DT
bank/NN
,/,
which/WDT
has/VBZ
loss/NN
reserves/NNS
equal/JJ
to/TO
about/IN
half/NN
its/PRP$
long-term/JJ
and/CC
medium-term/JJ
loans/NNS
to/TO
less-developed/JJR
nations/NNS
,/,
said/VBD
it/PRP
does/VBZ
n't/RB
think/VB
additional/JJ
reserves/NNS
are/VBP
required/VBN
./.
Enron/NNP
Corp./NNP
said/VBD
a/DT
subsidiary/NN
and/CC
two/CD
United/NNP
Kingdom/NNP
firms/NNS
are/VBP
studying/VBG
the/DT
feasibility/NN
of/IN
constructing/VBG
a/DT
1,500/CD
megawatt/NN
gas-fired/JJ
power/NN
plant/NN
in/IN
northern/JJ
England/NNP
as/IN
an/DT
outgrowth/NN
of/IN
the/DT
government/NN
's/POS
privatization/NN
program/NN
./.
Enron/NNP
Power/NNP
Corp./NNP
,/,
a/DT
unit/NN
of/IN
the/DT
Houston/NNP
natural/JJ
gas/NN
pipeline/NN
company/NN
,/,
would/MD
design/VB
,/,
construct/VB
and/CC
run/VB
the/DT
plant/NN
./.
Gas/NN
to/TO
fuel/VB
it/PRP
would/MD
be/VB
piped/VBN
from/IN
the/DT
North/NNP
Sea/NNP
./.
A/DT
subsidiary/NN
of/IN
Britain/NNP
's/POS
Imperial/NNP
Chemical/NNP
Industries/NNPS
would/MD
buy/VB
electricity/NN
and/CC
steam/NN
from/IN
the/DT
proposed/JJ
station/NN
./.
Surplus/JJ
power/NN
would/MD
be/VB
sold/VBN
on/IN
the/DT
open/JJ
market/NN
,/,
Enron/NNP
said/VBD
./.
Also/RB
participating/VBG
in/IN
the/DT
study/NN
,/,
Enron/NNP
said/VBD
,/,
is/VBZ
the/DT
National/NNP
Power/NNP
division/NN
of/IN
Britain/NNP
's/POS
Central/NNP
Electricity/NNP
Generating/NNP
Board/NNP
./.
Upon/IN
privatization/NN
,/,
National/NNP
Power/NNP
will/MD
be/VB
responsible/JJ
for/IN
70/CD
%/NN
of/IN
the/DT
country/NN
's/POS
power/NN
generating/NN
business/NN
./.
Viacom/NNP
Inc./NNP
,/,
New/NNP
York/NNP
,/,
reported/VBD
that/IN
its/PRP$
third-quarter/JJ
loss/NN
widened/VBD
to/TO
$/$
21.7/CD
million/CD
,/,
or/CC
41/CD
cents/NNS
a/DT
share/NN
,/,
primarily/RB
because/IN
of/IN
interest/NN
expense/NN
of/IN
$/$
70.1/CD
million/CD
./.
A/DT
year/NN
ago/RB
,/,
Viacom/NNP
had/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
56.9/CD
million/CD
,/,
or/CC
$/$
1.07/CD
a/DT
share/NN
./.
Interest/NN
expense/NN
in/IN
the/DT
1988/CD
third/JJ
quarter/NN
was/VBD
$/$
75.3/CD
million/CD
./.
In/IN
the/DT
year-ago/JJ
quarter/NN
,/,
Viacom/NNP
also/RB
paid/VBD
preferred/JJ
stock/NN
dividends/NNS
of/IN
$/$
17/CD
million/CD
;/:
Viacom/NNP
exchanged/VBD
its/PRP$
preferred/JJ
stock/NN
for/IN
debt/NN
in/IN
March/NNP
./.
The/DT
communications/NNS
and/CC
entertainment/NN
company/NN
said/VBD
revenue/NN
rose/VBD
to/TO
$/$
345.5/CD
million/CD
,/,
from/IN
$/$
311.6/CD
million/CD
./.
Viacom/NNP
attributed/VBD
the/DT
improvement/NN
to/TO
higher/JJR
earnings/NNS
from/IN
operations/NNS
in/IN
its/PRP$
networks/NNS
segment/NN
,/,
which/WDT
includes/VBZ
the/DT
MTV/NNP
and/CC
Showtime/NNP
networks/NNS
./.
Viacom/NNP
said/VBD
it/PRP
also/RB
restructured/VBD
bank/NN
debt/NN
under/IN
a/DT
$/$
1.5/CD
billion/CD
unsecured/JJ
bank/NN
agreement/NN
that/WDT
offers/VBZ
significant/JJ
interest/NN
rate/NN
savings/NNS
./.
Sumner/NNP
M./NNP
Redstone/NNP
,/,
Viacom/NNP
's/POS
chairman/NN
,/,
said/VBD
Viacom/NNP
``/``
emerged/VBD
from/IN
our/PRP$
leveraged/JJ
buy-out/NN
structure/NN
and/CC
gained/VBD
substantial/JJ
operating/NN
and/CC
financial/JJ
flexibility/NN
through/IN
''/''
the/DT
bank/NN
pact/NN
./.
Trinova/NNP
Corp./NNP
,/,
Maumee/NNP
,/,
Ohio/NNP
,/,
said/VBD
it/PRP
is/VBZ
launching/VBG
an/DT
extensive/JJ
restructuring/NN
of/IN
its/PRP$
core/NN
business/NN
,/,
and/CC
took/VBD
a/DT
charge/NN
that/WDT
resulted/VBD
in/IN
a/DT
loss/NN
of/IN
$/$
29.7/CD
million/CD
,/,
or/CC
87/CD
cents/NNS
a/DT
share/NN
,/,
for/IN
the/DT
third/JJ
quarter/NN
./.
Trinova/NNP
said/VBD
it/PRP
will/MD
close/VB
,/,
move/VB
or/CC
overhaul/VB
40/CD
of/IN
its/PRP$
170/CD
manufacturing/NN
facilities/NNS
and/CC
over/IN
the/DT
next/JJ
three/CD
years/NNS
cut/VB
1,500/CD
jobs/NNS
from/IN
its/PRP$
current/JJ
world-wide/JJ
payroll/NN
of/IN
22,300/CD
employees/NNS
./.
Most/JJS
of/IN
the/DT
factory/NN
closings/NNS
and/CC
job/NN
cutbacks/NNS
will/MD
affect/VB
Trinova/NNP
's/POS
Aeroquip/NNP
operations/NNS
,/,
which/WDT
manufacture/VBP
automotive/JJ
plastics/NNS
,/,
hoses/NNS
and/CC
other/JJ
industrial/JJ
and/CC
automotive/JJ
parts/NNS
./.
Hoses/NNS
and/CC
plastics/NNS
together/RB
account/VBP
for/IN
about/IN
42/CD
%/NN
of/IN
Trinova/NNP
's/POS
total/JJ
annual/JJ
sales/NNS
./.
In/IN
a/DT
separate/JJ
announcement/NN
,/,
Trinova/NNP
said/VBD
the/DT
Aeroquip/NNP
group/NN
has/VBZ
agreed/VBN
to/TO
sell/VB
its/PRP$
spring-brake/NN
,/,
piston-brake/NN
and/CC
related/JJ
businesses/NNS
to/TO
Midland/NNP
Brake/NNP
Inc./NNP
of/IN
Branford/NNP
,/,
Conn/NNP
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
To/TO
provide/VB
for/IN
the/DT
restructuring/NN
's/POS
costs/NNS
,/,
Trinova/NNP
said/VBD
it/PRP
took/VBD
an/DT
after-tax/JJ
charge/NN
of/IN
$/$
38.5/CD
million/CD
,/,
or/CC
$/$
1.13/CD
a/DT
share/NN
,/,
in/IN
the/DT
third/JJ
quarter/NN
./.
The/DT
$/$
29.7/CD
million/CD
net/JJ
loss/NN
compares/VBZ
with/IN
net/JJ
income/NN
of/IN
$/$
19.6/CD
million/CD
,/,
or/CC
57/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
./.
Sales/NNS
rose/VBD
8/CD
%/NN
to/TO
$/$
456.2/CD
million/CD
from/IN
$/$
422/CD
million/CD
./.
Trinova/NNP
closed/VBD
at/IN
$/$
25/CD
,/,
down/RB
$/$
1/CD
,/,
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
A/DT
group/NN
of/IN
investors/NNS
,/,
including/VBG
Giancarlo/NNP
Parretti/NNP
's/POS
Pathe/NNP
Communications/NNP
Corp./NNP
and/CC
Sasea/NNP
Holding/NNP
S.A./NNP
,/,
have/VBP
agreed/VBN
to/TO
buy/VB
76.66/CD
%/NN
of/IN
Odeon/NNP
Finanziaria/NNP
,/,
a/DT
financially/RB
troubled/JJ
Italian/JJ
TV/NN
station/NN
./.
Florio/NNP
Fiorini/NNP
,/,
managing/NN
director/NN
of/IN
Geneva-based/JJ
Sasea/NNP
,/,
said/VBD
the/DT
investors/NNS
would/MD
pay/VB
only/RB
a/DT
symbolic/JJ
one/CD
lira/NN
for/IN
the/DT
station/NN
,/,
``/``
but/CC
we/PRP
have/VBP
agreed/VBD
to/TO
raise/VB
the/DT
capital/NN
that/WDT
will/MD
enable/VB
the/DT
company/NN
to/TO
continue/VB
operating/VBG
./.
It/PRP
's/VBZ
sort/NN
of/IN
a/DT
Chapter/NN
11/CD
situation/NN
,/,
''/''
he/PRP
added/VBD
,/,
referring/VBG
to/TO
the/DT
U.S./NNP
bankruptcy/NN
law/NN
that/WDT
protects/VBZ
companies/NNS
from/IN
creditors/NNS
while/IN
they/PRP
restructure/VBP
./.
Milan-based/JJ
Odeon/NNP
,/,
which/WDT
draws/VBZ
about/IN
3/CD
%/NN
of/IN
Italian/JJ
TV/NN
viewers/NNS
,/,
has/VBZ
debt/NN
of/IN
250/CD
billion/CD
lire/NNS
$/$
181.9/CD
million/CD
Mr./NNP
Fiorini/NNP
said/VBD
./.
He/PRP
added/VBD
that/IN
details/NNS
of/IN
the/DT
recapitalization/NN
still/RB
have/VBP
to/TO
be/VB
worked/VBN
out/RB
,/,
but/CC
that/DT
Pathe/NNP
will/MD
take/VB
50/CD
%/NN
of/IN
Odeon/NNP
,/,
Rome/NNP
film/NN
producer/NN
Bruno/NNP
Lucisano/NNP
will/MD
take/VB
10/CD
%/NN
and/CC
the/DT
remaining/VBG
16.66/CD
%/NN
,/,
currently/RB
owned/VBN
by/IN
Sasea/NNP
,/,
will/MD
eventually/RB
be/VB
sold/VBN
to/TO
other/JJ
investors/NNS
./.
Calisto/NNP
Tanzi/NNP
,/,
Odeon/NNP
's/POS
owner/NN
,/,
will/MD
retain/VB
his/PRP$
23.34/CD
%/NN
stake/NN
./.
Italy/NNP
's/POS
Supreme/NNP
Court/NNP
this/DT
year/NN
ordered/VBD
Parliament/NNP
to/TO
write/VB
a/DT
law/NN
that/WDT
will/MD
regulate/VB
media/NNS
ownership/NN
./.
``/``
We/PRP
think/VBP
that/IN
it/PRP
's/VBZ
going/VBG
to/TO
be/VB
far/RB
more/RBR
favorable/JJ
to/TO
own/VB
a/DT
station/NN
before/IN
the/DT
law/NN
is/VBZ
passed/VBN
than/IN
to/TO
try/VB
to/TO
buy/VB
one/NN
afterward/RB
,/,
''/''
Mr./NNP
Fiorini/NNP
said/VBD
./.
San/NNP
Francisco/NNP
area/NN
officials/NNS
gave/VBD
the/DT
media/NNS
high/JJ
marks/NNS
for/IN
helping/VBG
people/NNS
find/VB
shelter/NN
and/CC
obtain/VB
emergency/NN
information/NN
after/IN
Tuesday/NNP
's/POS
catastrophic/JJ
earthquake/NN
./.
``/``
The/DT
press/NN
has/VBZ
been/VBN
doing/VBG
an/DT
excellent/JJ
job/NN
./.
They/PRP
are/VBP
telling/VBG
people/NNS
what/WDT
roads/NNS
are/VBP
closed/JJ
and/CC
just/RB
keeping/VBG
the/DT
public/NN
informed/JJ
has/VBZ
helped/VBN
to/TO
keep/VB
the/DT
panic/NN
down/RP
,/,
''/''
said/VBD
James/NNP
Ball/NNP
,/,
a/DT
station/NN
supervisor/NN
at/IN
Daly/NNP
City/NNP
Police/NNP
Department/NNP
./.
Mr./NNP
Ball/NNP
noted/VBD
that/IN
television/NN
stations/NNS
featured/VBD
people/NNS
holding/VBG
up/RP
phone/NN
books/NNS
,/,
explaining/VBG
where/WRB
to/TO
call/VB
for/IN
help/NN
./.
Radio/NN
stations/NNS
provided/VBD
an/DT
emergency/NN
number/NN
for/IN
people/NNS
who/WP
smelled/VBD
gas/NN
but/CC
did/VBD
n't/RB
know/VB
how/WRB
to/TO
turn/VB
off/RP
their/PRP$
gas/NN
supply/NN
./.
Kim/NNP
Schwartz/NNP
,/,
a/DT
spokesperson/NN
for/IN
the/DT
American/NNP
Red/NNP
Cross/NNP
in/IN
Los/NNP
Angeles/NNP
,/,
said/VBD
television/NN
and/CC
radio/NN
stations/NNS
in/IN
San/NNP
Francisco/NNP
played/VBD
a/DT
``/``
very/RB
positive/JJ
role/NN
''/''
by/IN
providing/VBG
the/DT
address/NN
of/IN
28/CD
shelters/NNS
of/IN
the/DT
Red/NNP
Cross/NNP
and/CC
by/IN
giving/VBG
out/RP
the/DT
Red/NNP
Cross/NNP
number/NN
for/IN
contributions/NNS
to/TO
help/VB
earthquake/NN
victims/NNS
1-800-453-9000/CD
The/DT
San/NNP
Francisco/NNP
Examiner/NNP
issued/VBD
a/DT
special/JJ
edition/NN
around/IN
noon/NN
yesterday/NN
that/WDT
was/VBD
filled/VBN
entirely/RB
with/IN
earthquake/NN
news/NN
and/CC
information/NN
./.
The/DT
Examiner/NNP
and/CC
the/DT
San/NNP
Francisco/NNP
Chronicle/NNP
were/VBD
able/JJ
to/TO
publish/VB
despite/IN
Tuesday/NNP
's/POS
quake/NN
,/,
which/WDT
occurred/VBD
close/RB
to/TO
deadline/NN
for/IN
many/JJ
newspapers/NNS
./.
Sterling/NNP
Software/NNP
Inc./NNP
said/VBD
it/PRP
lost/VBD
its/PRP$
bid/NN
to/TO
supply/VB
software/NN
services/NNS
to/TO
the/DT
National/NNP
Aeronautics/NNP
and/CC
Space/NNP
Administration/NNP
's/POS
Ames/NNP
Research/NNP
Center/NNP
at/IN
Moffett/NNP
Field/NNP
,/,
Calif/NNP
./.
Sterling/NNP
,/,
which/WDT
estimated/VBD
the/DT
value/NN
of/IN
the/DT
contract/NN
at/IN
$/$
150/CD
million/CD
,/,
said/VBD
NASA/NNP
selected/VBD
another/DT
bidder/NN
for/IN
final/JJ
negotiations/NNS
./.
In/IN
1988/CD
,/,
Dallas-based/JJ
Sterling/NNP
protested/VBD
a/DT
similar/JJ
decision/NN
by/IN
NASA/NNP
involving/VBG
the/DT
same/JJ
contract/NN
,/,
claiming/VBG
it/PRP
had/VBD
submitted/VBN
the/DT
lowest/JJS
bid/NN
./.
As/IN
a/DT
result/NN
,/,
last/JJ
March/NNP
the/DT
General/NNP
Services/NNPS
Administration/NNP
board/NN
of/IN
contract/NN
appeals/NNS
directed/VBD
NASA/NNP
to/TO
reopen/VB
negotiations/NNS
on/IN
the/DT
contract/NN
./.
Sterling/NNP
said/VBD
it/PRP
had/VBD
requested/VBN
a/DT
briefing/NN
by/IN
NASA/NNP
but/CC
had/VBD
not/RB
decided/VBN
whether/IN
to/TO
protest/VB
the/DT
agency/NN
's/POS
latest/JJS
decision/NN
./.
Consolidated/NNP
Rail/NNP
Corp./NNP
,/,
New/NNP
York/NNP
,/,
reported/VBD
that/IN
third-quarter/JJ
net/JJ
income/NN
climbed/VBD
4.8/CD
%/NN
to/TO
$/$
87/CD
million/CD
,/,
or/CC
$/$
1.27/CD
a/DT
share/NN
,/,
exceeding/VBG
analysts/NNS
'/POS
expectations/NNS
./.
In/IN
the/DT
year-earlier/JJ
quarter/NN
,/,
the/DT
freight/NN
railroad/NN
earned/VBD
$/$
83/CD
million/CD
,/,
or/CC
$/$
1.21/CD
a/DT
share/NN
./.
James/NNP
A./NN
Hagen/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
,/,
noted/VBD
that/IN
earnings/NNS
advanced/VBD
``/``
in/IN
the/DT
face/NN
of/IN
a/DT
drop/NN
in/IN
business/NN
,/,
brought/VBN
on/RB
by/IN
the/DT
general/JJ
economic/JJ
slowdown/NN
./.
''/''
Revenue/NN
slipped/VBD
4.6/CD
%/NN
to/TO
$/$
835/CD
million/CD
from/IN
$/$
876/CD
million/CD
./.
For/IN
the/DT
rest/NN
of/IN
1989/CD
,/,
Mr./NNP
Hagen/NNP
said/VBD
,/,
Conrail/NNP
's/POS
traffic/NN
and/CC
revenue/NN
``/``
will/MD
reflect/VB
the/DT
sluggish/JJ
economy/NN
,/,
but/CC
Conrail/NNP
will/MD
continue/VB
to/TO
take/VB
steps/NNS
to/TO
control/VB
and/CC
reduce/VB
costs/NNS
./.
''/''
For/IN
the/DT
nine/CD
months/NNS
,/,
Conrail/NNP
earnings/NNS
grew/VBD
0.4/CD
%/NN
to/TO
$/$
229/CD
million/CD
,/,
or/CC
$/$
3.34/CD
a/DT
share/NN
,/,
from/IN
$/$
228/CD
million/CD
,/,
or/CC
$/$
3.31/CD
a/DT
share/NN
./.
Revenue/NNP
was/VBD
flat/JJ
at/IN
$/$
2.59/CD
billion/CD
./.
Georgia/NNP
Gulf/NNP
Corp./NNP
,/,
hurt/VBN
by/IN
declining/VBG
sales/NNS
and/CC
falling/VBG
chemical/NN
prices/NNS
,/,
said/VBD
third-quarter/JJ
earnings/NNS
fell/VBD
13/CD
%/NN
to/TO
$/$
46.1/CD
million/CD
from/IN
$/$
53.1/CD
million/CD
in/IN
the/DT
year-earlier/JJ

period/NN
./.
Sales/NNS
declined/VBD
10/CD
%/NN
to/TO
$/$
251.2/CD
million/CD
from/IN
$/$
278.7/CD
million/CD
./.
The/DT
Atlanta-based/JJ
chemical/NN
manufacturer/NN
said/VBD
lower/JJR
prices/NNS
hurt/VB
margins/NNS
for/IN
most/JJS
products/NNS
./.
``/``
We/PRP
did/VBD
see/VB
some/DT
relief/NN
in/IN
raw/JJ
material/NN
costs/NNS
,/,
but/CC
it/PRP
was/VBD
n't/RB
sufficient/JJ
to/TO
offset/VB
the/DT
drop/NN
in/IN
sales/NNS
prices/NNS
,/,
''/''
James/NNP
R./NNP
Kuse/NNP
,/,
the/DT
company/NN
's/POS
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
said/VBD
in/IN
a/DT
statement/NN
./.
On/IN
a/DT
per-share/JJ
basis/NN
,/,
quarterly/JJ
earnings/NNS
remained/VBN
at/IN
$/$
1.85/CD
,/,
the/DT
same/JJ
as/IN
last/JJ
year/NN
,/,
because/IN
of/IN
the/DT
company/NN
's/POS
share/NN
buy-back/NN
program/NN
./.
Georgia/NNP
Gulf/NNP
had/VBD
24.9/CD
million/CD
shares/NNS
outstanding/JJ
on/IN
average/NN
in/IN
the/DT
quarter/NN
,/,
compared/VBN
with/IN
28.6/CD
million/CD
in/IN
the/DT
third/JJ
quarter/NN
of/IN
1988/CD
,/,
adjusted/VBN
for/IN
a/DT
stock/NN
split/NN
paid/VBN
in/IN
January/NNP
1989/CD
./.
In/IN
composite/JJ
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
trading/NN
,/,
stock/NN
in/IN
Georgia/NNP
Gulf/NNP
,/,
which/WDT
has/VBZ
been/VBN
mentioned/VBN
as/IN
a/DT
takeover/NN
candidate/NN
,/,
rose/VBD
$/$
2.125/CD
a/DT
share/NN
to/TO
close/VB
at/IN
$/$
46.125/CD
./.
This/DT
temblor-prone/JJ
city/NN
dispatched/VBD
inspectors/NNS
,/,
firefighters/NNS
and/CC
other/JJ
earthquake-trained/JJ
personnel/NNS
to/TO
aid/VB
San/NNP
Francisco/NNP
./.
But/CC
a/DT
secondary/JJ
agenda/NN
among/IN
officials/NNS
in/IN
the/DT
City/NNP
of/IN
Angels/NNPS
was/VBD
to/TO
learn/VB
about/IN
the/DT
disaster-contingency/NN
plans/NNS
that/WDT
work/VBP
and/CC
those/DT
that/WDT
do/VBP
n't/RB
./.
Los/NNP
Angeles/NNP
Mayor/NNP
Tom/NNP
Bradley/NNP
used/VBD
the/DT
opportunity/NN
to/TO
push/VB
the/DT
City/NNP
Council/NNP
harder/RBR
to/TO
pass/VB
a/DT
measure/NN
establishing/VBG
a/DT
loss-recovery/JJ
reserve/NN
of/IN
$/$
100/CD
million/CD
./.
The/DT
amount/NN
would/MD
help/VB
Los/NNP
Angeles/NNP
cope/VB
in/IN
the/DT
first/JJ
few/JJ
weeks/NNS
after/IN
its/PRP$
own/JJ
anticipated/JJ
quake/NN
,/,
while/IN
waiting/VBG
for/IN
federal/JJ
assistance/NN
to/TO
arrive/VB
./.
After/IN
San/NNP
Francisco/NNP
Mayor/NNP
Art/NNP
Agnos/NNP
spoke/VBD
on/IN
television/NN
of/IN
the/DT
need/NN
for/IN
building/NN
inspectors/NNS
to/TO
check/VB
the/DT
soundness/NN
of/IN
buildings/NNS
,/,
Los/NNP
Angeles/NNP
dispatched/VBD
32/CD
inspectors/NNS
to/TO
help/VB
./.
And/CC
the/DT
county/NN
of/IN
Los/NNP
Angeles/NNP
placed/VBD
its/PRP$
firefighters/NNS
and/CC
sheriffs/NNS
on/IN
alert/JJ
,/,
ready/JJ
to/TO
send/VB
in/IN
reinforcements/NNS
,/,
and/CC
alerted/VBD
San/NNP
Francisco/NNP
that/IN
the/DT
city/NN
has/VBZ
1,000/CD
hospital/NN
beds/NNS
at/IN
its/PRP$
disposal/NN
./.
Two/CD
Los/NNP
Angeles/NNP
radio/NN
stations/NNS
initiated/VBD
Red/NNP
Cross/NNP
donation/NN
campaigns/NNS
,/,
and/CC
one/CD
Los/NNP
Angeles/NNP
bank/NN
manager/NN
forked/VBD
over/RP
$/$
150,000/CD
of/IN
his/PRP$
own/JJ
money/NN
for/IN
relief/NN
purposes/NNS
,/,
the/DT
Red/NNP
Cross/NNP
said/VBD
./.
The/DT
Los/NNP
Angeles/NNP
Red/NNP
Cross/NNP
sent/VBD
2,480/CD
cots/NNS
,/,
500/CD
blankets/NNS
,/,
and/CC
300/CD
pints/NNS
of/IN
Type-O/JJ
blood/NN
./.
It/PRP
is/VBZ
also/RB
pulling/VBG
20/CD
people/NNS
out/IN
of/IN
Puerto/NNP
Rico/NNP
,/,
who/WP
were/VBD
helping/VBG
Huricane/NNP
Hugo/NNP
victims/NNS
,/,
and/CC
sending/VBG
them/PRP
to/TO
San/NNP
Francisco/NNP
instead/RB
./.
The/DT
Arizona/NNP
Corporations/NNP
Commission/NNP
authorized/VBD
an/DT
11.5/CD
%/NN
rate/NN
increase/NN
at/IN
Tucson/NNP
Electric/NNP
Power/NNP
Co./NNP
,/,
substantially/RB
lower/JJR
than/IN
recommended/VBN
last/JJ
month/NN
by/IN
a/DT
commission/NN
hearing/NN
officer/NN
and/CC
barely/RB
half/PDT
the/DT
rise/NN
sought/VBN
by/IN
the/DT
utility/NN
./.
The/DT
ruling/NN
follows/VBZ
a/DT
host/NN
of/IN
problems/NNS
at/IN
Tucson/NNP
Electric/NNP
,/,
including/VBG
major/JJ
write-downs/NNS
,/,
a/DT
60/CD
%/NN
slash/NN
in/IN
the/DT
common/JJ
stock/NN
dividend/NN
and/CC
the/DT
departure/NN
of/IN
former/JJ
Chairman/NNP
Einar/NNP
Greve/NNP
during/IN
a/DT
company/NN
investigation/NN
of/IN
his/PRP$
stock/NN
sales/NNS
./.
The/DT
Arizona/NNP
regulatory/JJ
ruling/NN
calls/VBZ
for/IN
$/$
42/CD
million/CD
in/IN
added/JJ
revenue/NN
yearly/RB
,/,
compared/VBN
with/IN
a/DT
$/$
57/CD
million/CD
boost/NN
proposed/VBN
by/IN
the/DT
commission/NN
hearing/NN
officer/NN
./.
The/DT
company/NN
had/VBD
sought/VBN
increases/NNS
totaling/VBG
$/$
80.3/CD
million/CD
,/,
or/CC
22/CD
%/NN
./.
The/DT
decision/NN
was/VBD
announced/VBN
after/IN
trading/NN
ended/VBD
./.
Tucson/NNP
Electric/NNP
closed/VBD
at/IN
$/$
20.875/CD
a/DT
share/NN
,/,
down/RB
25/CD
cents/NNS
,/,
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
A/DT
Tucson/NNP
Electric/NNP
spokesman/NN
said/VBD
the/DT
utility/NN
was/VBD
disappointed/VBN
by/IN
the/DT
commission/NN
's/POS
decision/NN
and/CC
``/``
concerned/JJ
about/IN
the/DT
financial/JJ
integrity/NN
of/IN
the/DT
company/NN
./.
''/''
South/JJ
Korean/JJ
President/NNP
Roh/NNP
Tae/NNP
Woo/NNP
,/,
brushing/VBG
aside/RP
suggestions/NNS
that/IN
the/DT
won/NN
be/VB
revalued/VBN
again/RB
,/,
said/VBD
the/DT
currency/NN
's/POS
current/JJ
level/NN
against/IN
the/DT
dollar/NN
is/VBZ
``/``
appropriate/JJ
./.
''/''
His/PRP$
comments/NNS
,/,
made/VBN
in/IN
response/NN
to/TO
reporters/NNS
'/POS
questions/NNS
at/IN
the/DT
National/NNP
Press/NNP
Club/NNP
here/RB
,/,
signaled/VBD
that/IN
Seoul/NNP
is/VBZ
resisting/VBG
U.S./NNP
pressure/NN
for/IN
a/DT
further/JJR
rise/NN
in/IN
the/DT
currency/NN
's/POS
value/NN
./.
The/DT
U.S./NNP
wants/VBZ
a/DT
higher/JJR
won/NN
to/TO
make/VB
South/NNP
Korea/NNP
's/POS
exports/NNS
more/RBR
expensive/JJ
and/CC
help/VB
trim/VB
Seoul/NNP
's/POS
trade/NN
surplus/NN
./.
Many/JJ
South/JJ
Korean/JJ
business/NN
people/NNS
want/VBP
a/DT
devaluation/NN
instead/RB
,/,
arguing/VBG
that/IN
the/DT
won/VBN
's/POS
recent/JJ
gains/NNS
already/RB
have/VBP
weakened/VBN
the/DT
country/NN
's/POS
export/NN
performance/NN
./.
Mr./NNP
Roh/NNP
also/RB
said/VBD
South/NNP
Korea/NNP
is/VBZ
taking/VBG
steps/NNS
that/WDT
would/MD
free/VB
the/DT
won/NN
to/TO
respond/VB
to/TO
market/NN
forces/NNS
./.
Seoul/NNP
has/VBZ
pointed/VBN
to/TO
its/PRP$
lack/NN
of/IN
a/DT
foreign/JJ
exchange/NN
market/NN
as/IN
one/CD
reason/NN
the/DT
won/NN
's/POS
value/NN
remains/VBZ
heavily/RB
controlled/VBN
./.
Mr./NNP
Roh/NNP
said/VBD
a/DT
U.S./NNP
demand/NN
for/IN
the/DT
removal/NN
of/IN
South/JJ
Korean/JJ
import/NN
quotas/NNS
on/IN
beef/NN
will/MD
be/VB
resolved/VBN
``/``
satisfactorily/RB
''/''
but/CC
gave/VBD
no/DT
hint/NN
when/WRB
that/DT
will/MD
happen/VB
./.
Speaking/VBG
to/TO
a/DT
joint/JJ
meeting/NN
of/IN
Congress/NNP
earlier/RBR
,/,
he/PRP
said/VBD
South/NNP
Korea/NNP
ca/MD
n't/RB
move/VB
quickly/RB
on/IN
such/JJ
agricultural/JJ
trade/NN
issues/NNS
``/``
without/IN
causing/VBG
political/JJ
and/CC
social/JJ
trauma/NN
./.
''/''
Great/NNP
American/NNP
Bank/NNP
said/VBD
its/PRP$
board/NN
approved/VBD
the/DT
formation/NN
of/IN
a/DT
holding/NN
company/NN
enabling/VBG
the/DT
savings/NNS
bank/NN
to/TO
pursue/VB
nontraditional/JJ
banking/NN
activities/NNS
under/IN
a/DT
new/JJ
federal/JJ
law/NN
./.
The/DT
proposed/JJ
holding/NN
company/NN
's/POS
primary/JJ
purpose/NN
would/MD
be/VB
to/TO
allow/VB
Great/NNP
American/NNP
to/TO
continue/VB
engaging/JJ
in/IN
real/JJ
estate/NN
development/NN
activities/NNS
,/,
it/PRP
said/VBD
./.
Those/DT
activities/NNS
generated/VBD
$/$
26.1/CD
million/CD
in/IN
operating/NN
profit/NN
last/JJ
year/NN
./.
But/CC
according/VBG
to/TO
Great/NNP
American/NNP
,/,
such/JJ
profits/NNS
do/VBP
n't/RB
count/VB
toward/IN
meeting/VBG
the/DT
San/NNP
Diego/NNP
savings/NNS
bank/NN
's/POS
new/JJ
capitalization/NN
requirements/NNS
under/IN
1989/CD
federal/JJ
law/NN
./.
The/DT
new/JJ
real/JJ
estate/NN
unit/NN
would/MD
have/VB
a/DT
separate/JJ
capital/NN
structure/NN
to/TO
comply/VB
with/IN
the/DT
law/NN
./.
The/DT
proposed/JJ
holding/NN
company/NN
would/MD
also/RB
consolidate/VB
Great/NNP
American/NNP
Bank/NNP
in/IN
San/NNP
Diego/NNP
and/CC
its/PRP$
Tucson/NNP
,/,
Ariz./NNP
,/,
savings/NNS
bank/NN
into/IN
a/DT
single/JJ
,/,
federally/RB
chartered/JJ
institution/NN
in/IN
San/NNP
Diego/NNP
./.
The/DT
consolidation/NN
is/VBZ
expected/VBN
to/TO
save/VB
$/$
1/CD
million/CD
a/DT
year/NN
in/IN
administrative/JJ
costs/NNS
,/,
a/DT
Great/NNP
American/NNP
spokesman/NN
said/VBD
./.
Dale/NNP
Lang/NNP
,/,
who/WP
this/DT
week/NN
completed/VBD
the/DT
acquisition/NN
of/IN
the/DT
publisher/NN
of/IN
Ms./NNP
and/CC
Sassy/NNP
,/,
is/VBZ
candid/JJ
about/IN
the/DT
challenge/NN
he/PRP
is/VBZ
taking/VBG
on/RP
./.
Mr./NNP
Lang/NNP
admits/VBZ
that/DT
Ms./NNP
is/VBZ
``/``
in/IN
dire/JJ
straits/NNS
''/''
and/CC
that/IN
Sassy/NNP
needs/VBZ
big/JJ
promotional/JJ
dollars/NNS
to/TO
keep/VB
it/PRP
alive/JJ
./.
But/CC
the/DT
57-year-old/JJ
publisher/NN
has/VBZ
moved/VBN
quickly/RB
and/CC
boldly/RB
to/TO
deal/VB
with/IN
the/DT
magazines/NNS
'/POS
problems/NNS
./.
Last/JJ
Friday/NNP
,/,
he/PRP
told/VBD
the/DT
staff/NN
of/IN
Ms./NNP
that/IN
the/DT
magazine/NN
in/IN
January/NNP
would/MD
begin/VB
publishing/VBG
without/IN
advertising/NN
./.
Mr./NNP
Lang/NNP
will/MD
do/VB
away/RB
with/IN
expensive/JJ
circulation/NN
drives/VBZ
,/,
not/RB
to/TO
mention/VB
sales/NNS
staff/NN
,/,
and/CC
attempt/VB
to/TO
publish/VB
the/DT
17-year-old/JJ
magazine/NN
supported/VBN
by/IN
circulation/NN
revenue/NN
alone/RB
./.
``/``
Any/DT
fool/NN
can/MD
publish/VB
a/DT
money-losing/JJ
magazine/NN
./.
I/PRP
want/VBP
to/TO
publish/VB
one/NN
that/WDT
succeeds/VBZ
,/,
''/''
said/VBD
Mr./NNP
Lang/NNP
./.
``/``
For/IN
Ms./NNP
,/,
it/PRP
's/VBZ
time/NN
to/TO
publish/VB
for/IN
the/DT
reader/NN
,/,
not/RB
the/DT
advertiser/NN
./.
''/''
As/IN
for/IN
Sassy/NNP
,/,
which/WDT
competes/VBZ
directly/RB
with/IN
News/NNP
Corp./NNP
's/POS
Seventeen/NNP
magazine/NN
,/,
Mr./NNP
Lang/NNP
says/VBZ
that/IN
in/IN
the/DT
next/JJ
two/CD
years/NNS
he/PRP
will/MD
spend/VB
$/$
6/CD
million/CD
promoting/VBG
and/CC
improving/VBG
the/DT
magazine/NN
./.
Though/NNP
Sassy/NNP
has/VBZ
grown/VBN
quickly/RB
since/IN
its/PRP$
debut/NN
in/IN
March/NNP
1988/CD
,/,
it/PRP
has/VBZ
been/VBN
the/DT
target/NN
of/IN
conservative/JJ
lobbyists/NNS
and/CC
skittish/JJ
advertisers/NNS
who/WP
bristled/VBD
at/IN
its/PRP$
frank/JJ
editorial/JJ
matter/NN
on/IN
teen-age/JJ
problems/NNS
./.
Mr./NNP
Lang/NNP
said/VBD
the/DT
former/JJ
Australian/JJ
owners/NNS
of/IN
Sassy/NNP
were/VBD
``/``
blind-sided/JJ
by/IN
the/DT
Moral/NNP
Majority/NNP
.../:
./.
Their/PRP$
reaction/NN
was/VBD
to/TO
do/VB
nothing/NN
and/CC
ride/VB
it/PRP
out/RP
./.
''/''
He/PRP
said/VBD
Sassy/NNP
will/MD
keep/VB
its/PRP$
irreverent/JJ
tone/NN
,/,
but/CC
added/VBD
,/,
``/``
We/PRP
will/MD
keep/VB
a/DT
close/JJ
watch/NN
on/IN
the/DT
editorial/JJ
content/NN
of/IN
the/DT
magazine/NN
./.
''/''
Sassy/NNP
already/RB
has/VBZ
recovered/VBN
;/:
circulation/NN
has/VBZ
quickly/RB
passed/VBN
the/DT
500,000/CD
mark/NN
and/CC
advertising/NN
pages/NNS
have/VBP
stabilized/VBN
this/DT
year/NN
at/IN
more/JJR
than/IN
300/CD
./.
What/WP
's/VBZ
more/JJR
,/,
Mr./NNP
Lang/NNP
says/VBZ
he/PRP
has/VBZ
what/WP
all/DT
publishers/NNS
wish/VBP
for/IN
:/:
a/DT
bona/JJ
fide/JJ
niche/NN
./.
``/``
Seventeen/NNP
is/VBZ
written/VBN
more/RBR
for/IN
mothers/NNS
,/,
not/RB
their/PRP$
daughters/NNS
,/,
''/''
said/VBD
Mr./NNP
Lang/NNP
./.
``/``
But/CC
Sassy/NNP
has/VBZ
a/DT
different/JJ
spirit/NN
./.
It/PRP
gets/VBZ
more/JJR
mail/NN
in/IN
a/DT
month/NN
than/IN
McCall/NNP
's/POS
got/VBD
in/IN
a/DT
year/NN
,/,
and/CC
it/PRP
's/VBZ
not/RB
from/IN
mothers/NNS
./.
I/PRP
feel/VBP
about/IN
Sassy/NNP
like/IN
I/PRP
did/VBD
about/IN
Working/NNP
Woman/NNP
10/CD
years/NNS
ago/RB
./.
''/''
Mr./NNP
Lang/NNP
took/VBD
on/RP
Ms./NNP
and/CC
Sassy/NNP
with/IN
the/DT
acquisition/NN
of/IN
Matilda/NNP
Publications/NNP
Inc./NNP
by/IN
his/PRP$
newly/RB
formed/VBN
Lang/NNP
Communications/NNP
./.
Lang/NNP
owns/VBZ
70/CD
%/NN
of/IN
Matilda/NNP
,/,
while/IN
Citicorp/NNP
owns/VBZ
the/DT
rest/NN
through/IN
its/PRP$
Citicorp/NNP
Venture/NNP
Capital/NNP
Partners/NNP
./.
Two/CD
weeks/NNS
ago/RB
,/,
Citicorp/NNP
and/CC
Mr./NNP
Lang/NNP
pumped/VBD
$/$
800,000/CD
into/IN
Matilda/NNP
just/RB
to/TO
keep/VB
the/DT
doors/NNS
open/JJ
./.
Industry/NN
observers/NNS
have/VBP
congratulated/VBN
Mr./NNP
Lang/NNP
on/IN
what/WP
some/DT
call/VB
his/PRP$
``/``
courageous/JJ
''/''
handling/NN
of/IN
Ms./NNP
,/,
but/CC
his/PRP$
track/NN
record/NN
in/IN
magazine/NN
publishing/NN
in/IN
general/JJ
has/VBZ
gotten/VBN
mixed/JJ
reviews/NNS
./.
Besides/IN
Ms./NNP
and/CC
Sassy/NNP
,/,
closely/RB
held/VBN
Lang/NNP
Communications/NNP
includes/VBZ
Success/NNP
,/,
a/DT
magazine/NN
for/IN
entrepreneurs/NNS
and/CC
small/JJ
businesses/NNS
,/,
and/CC
Working/NNP
Woman/NNP
and/CC
Working/NNP
Mother/NNP
,/,
two/CD
monthly/JJ
magazines/NNS
./.
Working/NNP
Woman/NNP
,/,
with/IN
circulation/NN
near/IN
one/CD
million/CD
,/,
and/CC
Working/NNP
Mother/NNP
,/,
with/IN
625,000/CD
circulation/NN
,/,
are/VBP
legitimate/JJ
magazine/NN
success/NN
stories/NNS
./.
The/DT
magazine/NN
Success/NNP
,/,
however/RB
,/,
was/VBD
for/IN
years/NNS
lackluster/JJ
and/CC
unfocused/JJ
./.
Only/RB
recently/RB
has/VBZ
it/PRP
been/VBN
attractively/RB
redesigned/VBN
and/CC
its/PRP$
editorial/JJ
product/NN
improved/VBN
./.
Success/NNP
is/VBZ
expected/VBN
to/TO
gain/VB
at/IN
least/JJS
because/IN
of/IN
the/DT
recent/JJ
folding/NN
of/IN
rival/JJ
Venture/NNP
,/,
another/DT
magazine/NN
for/IN
growing/VBG
companies/NNS
./.
Working/NNP
Woman/NNP
and/CC
Working/NNP
Mother/NNP
have/VBP
operated/VBN
as/IN
part/NN
of/IN
Working/NNP
Woman\/McCall/NNP
's/POS
Group/NNP
,/,
a/DT
less-than-successful/JJ
joint/JJ
venture/NN
between/IN
Mr./NNP
Lang/NNP
and/CC
Time/NN
Warner/NNP
Inc/NNP
./.
The/DT
joint/JJ
venture/NN
is/VBZ
being/VBG
undone/VBN
,/,
with/IN
McCall/NNP
's/POS
magazine/NN
being/VBG
sold/VBN
last/JJ
summer/NN
to/TO
the/DT
New/NNP
York/NNP
Times/NNP
Co./NNP
's/POS
Magazine/NNP
Group/NNP
for/IN
about/RB
$/$
80/CD
million/CD
,/,
and/CC
Time/NN
Warner/NNP
agreeing/VBG
to/TO
sell/VB
back/RP
its/PRP$
50/CD
%/NN
interest/NN
in/IN
Working/NNP
Woman/NNP
and/CC
Working/NNP
Mother/NNP
to/TO
Mr./NNP
Lang/NNP
./.
Executives/NNS
at/IN
Time/NNP
Inc/NNP
./.
Magazine/NNP
Co./NNP
,/,
a/DT
subsidiary/NN
of/IN
Time/NNP
Warner/NNP
,/,
have/VBP
said/VBN
the/DT
joint/JJ
venture/NN
with/IN
Mr./NNP
Lang/NNP
was/VBD
n't/RB
a/DT
good/JJ
one/CD
./.
The/DT
venture/NN
,/,
formed/VBN
in/IN
1986/CD
,/,
was/VBD
supposed/VBN
to/TO
be/VB
Time/NNP
's/POS
low-cost/JJ
,/,
safe/JJ
entry/NN
into/IN
women/NNS
's/POS
magazines/NNS
./.
Mr./NNP
Lang/NNP
surprised/VBD
Time/NNP
soon/RB
after/IN
joining/VBG
forces/NNS
when/WRB
he/PRP
said/VBD
he/PRP
would/MD
negotiate/VB
rates/NNS
individually/RB
with/IN
advertisers/NNS
,/,
a/DT
practice/NN
common/JJ
in/IN
broadcasting/NN
but/CC
considered/VBN
taboo/NN
by/IN
magazine/NN
publishers/NNS
./.
In/IN
addition/NN
,/,
McCall/NNP
's/POS
put/VBD
in/RP
a/DT
less/RBR
than/IN
stellar/JJ
performance/NN
./.
Until/IN
a/DT
recent/JJ
comeback/NN
,/,
it/PRP
saw/VBD
steep/JJ
losses/NNS
in/IN
ad/NN
pages/NNS
and/CC
circulation/NN
./.
Time/NNP
executives/NNS
complained/VBD
about/IN
the/DT
shoddy/JJ
editorial/JJ
quality/NN
,/,
and/CC
in/IN
the/DT
end/NN
,/,
one/CD
Time/NNP
executive/NN
who/WP
asked/VBD
not/RB
to/TO
be/VB
identified/VBN
said/VBD
,/,
``/``
Frankly/RB
,/,
McCall/NNP
's/POS
and/CC
the/DT
joint/JJ
venture/NN
were/VBD
an/DT
embarrassment/NN
./.
''/''
Mr./NNP
Lang/NNP
feels/VBZ
that/DT
Time/NNP
's/POS
priorities/NNS
changed/VBD
./.
``/``
Their/PRP$
management/NN
changed/VBD
right/RB
after/IN
{/(
the/DT
venture/NN
was/VBD
formed/VBN
}/)
,/,
and/CC
I/PRP
do/VBP
n't/RB
think/VB
they/PRP
were/VBD
comfortable/JJ
getting/VBG
into/IN
the/DT
competitive/JJ
wars/NNS
of/IN
women/NNS
's/POS
service/NN
magazines/NNS
./.
''/''
Today/NN
,/,
Mr./NNP
Lang/NNP
believes/VBZ
his/PRP$
magazines/NNS
will/MD
offer/VB
what/WP
many/JJ
women/NNS
's/POS
magazines/NNS
do/VBP
n't/RB
./.
``/``
We/PRP
write/VBP
straight/RB
for/IN
women/NNS
on/IN
their/PRP$
level/NN
,/,
''/''
he/PRP
said/VBD
./.
``/``
We/PRP
do/VBP
n't/RB
have/VB
passive/JJ
readers/NNS
./.
''/''
Mr./NNP
Lang/NNP
points/VBZ
out/RP
that/IN
even/RB
Success/NNP
,/,
in/IN
part/NN
,/,
fits/VBZ
the/DT
company/NN
's/POS
image/NN
,/,
since/IN
about/RB
30/CD

%/NN
of/IN
its/PRP$
readership/NN
is/VBZ
female/JJ
./.
Mr./NNP
Lang/NNP
has/VBZ
named/VBN
Carol/NNP
Taber/NNP
,/,
43/CD
,/,
as/IN
group/NN
publisher/NN
of/IN
New/NNP
York-based/JJ
Lang/NNP
Communications/NNP
./.
She/PRP
will/MD
oversee/VB
Working/NNP
Woman/NNP
,/,
Working/NNP
Mother/NNP
and/CC
Success/NNP
magazines/NNS
,/,
and/CC
retain/VB
her/PRP
post/NN
as/IN
publisher/NN
of/IN
Working/NNP
Woman/NNP
./.
The/DT
sale/NN
price/NN
of/IN
McCall/NNP
's/POS
--/:
twice/RB
what/WP
Mr./NNP
Lang/NNP
originally/RB
paid/VBD
for/IN
it/PRP
--/:
will/MD
finance/VB
Lang/NNP
Communications/NNP
'/POS
buy-back/NN
of/IN
Time/NNP
Warner/NNP
's/POS
50/CD
%/NN
interest/NN
in/IN
Working/NNP
Woman/NNP
and/CC
Working/NNP
Mother/NNP
./.
Mr./NNP
Lang/NNP
says/VBZ
he/PRP
is/VBZ
n't/RB
scouting/VBG
new/JJ
acquisitions/NNS
,/,
at/IN
least/JJS
for/IN
now/RB
./.
``/``
We/PRP
would/MD
have/VB
to/TO
go/VB
outside/RB
to/TO
banks/NNS
to/TO
get/VB
the/DT
money/NN
and/CC
I/PRP
am/VBP
not/RB
ready/JJ
to/TO
do/VB
that/DT
,/,
''/''
he/PRP
said/VBD
./.
``/``
Besides/RB
,/,
we/PRP
have/VBP
enough/NN
on/IN
our/PRP$
plate/NN
./.
There/EX
is/VBZ
plenty/NN
of/IN
work/NN
to/TO
be/VB
done/VBN
on/IN
what/WP
we/PRP
have/VBP
./.
''/''
Britain/NNP
's/POS
Monopolies/NNP
and/CC
Mergers/NNP
Commission/NNP
Wednesday/NNP
cleared/VBD
Rhone-Poulenc/NNP
S.A./NNP
's/POS
purchase/NN
of/IN
a/DT
specialty/NN
bulk-chemical/NN|JJ
unit/NN
from/IN
Monsanto/NNP
Co./NNP
,/,
saying/VBG
the/DT
purchase/NN
was/VBD
unlikely/JJ
to/TO
have/VB
any/DT
lasting/JJ
impact/NN
on/IN
U.K./NNP
industrial/JJ
consumers/NNS
./.
The/DT
commission/NN
,/,
which/WDT
was/VBD
asked/VBN
to/TO
study/VB
the/DT
deal/NN
by/IN
the/DT
Department/NNP
of/IN
Trade/NNP
and/CC
Industry/NNP
after/IN
its/PRP$
announcement/NN
in/IN
February/NNP
,/,
said/VBD
the/DT
diversity/NN
of/IN
global/JJ
supply/NN
of/IN
chemicals/NNS
used/VBN
in/IN
making/VBG
analgesic/JJ
drugs/NNS
was/VBD
great/JJ
enough/RB
to/TO
offset/VB
the/DT
dominant/JJ
U.K./NNP
market/NN
share/NN
Rhone-Poulenc/NNP
would/MD
gain/VB
through/IN
the/DT
acquisition/NN
./.
The/DT
French/NNP
chemical/NN
giant/NN
would/MD
hold/VB
an/DT
80/CD
%/NN
share/NN
of/IN
the/DT
U.K./NNP
market/NN
for/IN
salicylic/JJ
acid/NN
,/,
methyl/NN
salicylate/NN
and/CC
bulk/JJ
aspirin/NN
./.
The/DT
commission/NN
found/VBD
that/IN
if/IN
the/DT
British/JJ
government/NN
attempted/VBD
to/TO
block/VB
the/DT
merger/NN
,/,
Rhone-Poulenc/NNP
would/MD
likely/RB
respond/VB
by/IN
closing/VBG
the/DT
salicylates/NNS
plant/NN
Monsanto/NNP
operates/VBZ
in/IN
Wales/NNP
,/,
removing/VBG
the/DT
matter/NN
from/IN
U.K./NNP
jurisdiction/NN
./.
Morrison/NNP
Knudsen/NNP
Corp./NNP
posted/VBD
third-quarter/JJ
net/JJ
income/NN
of/IN
$/$
7.9/CD
million/CD
,/,
or/CC
69/CD
cents/NNS
a/DT
share/NN
,/,
continuing/VBG
a/DT
rebound/NN
from/IN
steep/JJ
year-ago/JJ
losses/NNS
./.
In/IN
the/DT
third/JJ
quarter/NN
a/DT
year-earlier/NN
,/,
the/DT
construction/NN
and/CC
engineering/NN
concern/NN
posted/VBD
a/DT
loss/NN
of/IN
$/$
51.2/CD
million/CD
,/,
or/CC
$/$
4.68/CD
a/DT
share/NN
./.
Revenue/NN
in/IN
the/DT
latest/JJS
quarter/NN
rose/VBD
14/CD
%/NN
to/TO
$/$
589/CD
million/CD
from/IN
$/$
515.1/CD
million/CD
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Morrison/NNP
gained/VBD
$/$
2.25/CD
to/TO
$/$
44.125/CD
./.
Morrison/NNP
said/VBD
the/DT
engineering/NN
and/CC
construction/NN
segment/NN
performed/VBD
well/RB
,/,
with/IN
the/DT
mining/NN
and/CC
MK-Ferguson/NNP
operations/NNS
making/VBG
important/JJ
contributions/NNS
./.
Boise/NNP
,/,
Idaho-based/JJ
Morrison/NNP
had/VBD
losses/NNS
totaling/VBG
$/$
186/CD
million/CD
over/IN
the/DT
two/CD
years/NNS
ended/VBN
in/IN
December/NNP
,/,
but/CC
it/PRP
has/VBZ
surged/VBN
back/RB
to/TO
profitability/NN
as/IN
a/DT
result/NN
of/IN
cost-cutting/NN
and/CC
shedding/NN
of/IN
unprofitable/JJ
operations/NNS
./.
In/IN
the/DT
nine/CD
months/NNS
,/,
the/DT
company/NN
's/POS
net/JJ
income/NN
was/VBD
$/$
21.5/CD
million/CD
,/,
or/CC
$/$
1.88/CD
a/DT
share/NN
,/,
compared/VBN
with/IN
a/DT
year-earlier/JJ
loss/NN
of/IN
$/$
97.8/CD
million/CD
,/,
or/CC
$/$
8.96/CD
a/DT
share/NN
./.
Revenue/NN
rose/VBD
17/CD
%/NN
to/TO
$/$
1.62/CD
billion/CD
from/IN
$/$
1.39/CD
billion/CD
./.
The/DT
House/NNP
Ethics/NNP
Committee/NNP
officially/RB
cited/VBD
Rep./NNP
Jim/NNP
Bates/NNP
D./NNP
,/,
Calif/NNP
./.
two/CD
female/JJ
employees/NNS
,/,
but/CC
did/VBD
n't/RB
recommend/VB
formal/JJ
disciplinary/JJ
action/NN
./.
Rep./NNP
Bates/NNP
said/VBD
he/PRP
accepted/VBD
the/DT
finding/NN
,/,
but/CC
one/CD
of/IN
the/DT
victims/NNS
,/,
Dorena/NNP
Bertussi/NNP
,/,
denounced/VBD
the/DT
ethics/NNS
panel/NN
's/POS
action/NN
as/IN
``/``
absurd/JJ
./.
''/''
Acting/VBG
more/RBR
than/IN
a/DT
year/NN
after/IN
Ms./NNP
Bertussi/NNP
filed/VBD
a/DT
complaint/NN
,/,
the/DT
panel/NN
issued/VBD
a/DT
``/``
letter/NN
of/IN
reproval/NN
''/''
saying/VBG
Rep./NNP
Bates/NNP
had/VBD
admitted/VBN
conduct/NN
that/WDT
violated/VBD
a/DT
House/NNP
rule/NN
forbidding/VBG
discrimination/NN
against/IN
employees/NNS
on/IN
account/NN
of/IN
their/PRP$
sex/NN
./.
It/PRP
ordered/VBD
Rep./NNP
Bates/NNP
to/TO
write/VB
letters/NNS
of/IN
apology/NN
to/TO
Ms./NNP
Bertussi/NNP
and/CC
to/TO
a/DT
second/JJ
complainant/NN
,/,
Karen/NNP
Dryden/NNP
./.
Rep./NNP
Bates/NNP
said/VBD
he/PRP
would/MD
write/VB
the/DT
letters/NNS
as/IN
ordered/VBN
./.
``/``
I/PRP
accept/VBP
the/DT
resolution/NN
of/IN
the/DT
matter/NN
by/IN
the/DT
Ethics/NNP
Committee/NNP
,/,
''/''
he/PRP
said/VBD
./.
The/DT
panel/NN
also/RB
warned/VBD
Rep./NNP
Bates/NNP
that/IN
any/DT
further/JJ
violations/NNS
``/``
may/MD
result/VB
in/IN
a/DT
recommendation/NN
that/IN
disciplinary/JJ
action/NN
be/VB
considered/VBN
./.
''/''
But/CC
Ms./NNP
Bertussi/NNP
asked/VBD
,/,
``/``
Who/WP
in/IN
their/PRP$
right/JJ
mind/NN
is/VBZ
going/VBG
to/TO
file/VB
another/DT
complaint/NN
with/IN
the/DT
Ethics/NNP
Committee/NNP
?/.
''/''
Rep./NNP
Bates/NNP
has/VBZ
publicly/RB
begged/VBN
for/IN
forgiveness/NN
from/IN
voters/NNS
and/CC
was/VBD
re-elected/VBN
with/IN
60/CD
%/NN
of/IN
the/DT
vote/NN
last/JJ
November/NNP
./.
Mesa/NNP
Airlines/NNP
said/VBD
the/DT
takeover/NN
offer/NN
it/PRP
received/VBD
earlier/RBR
this/DT
week/NN
from/IN
StatesWest/NNP
Airlines/NNP
is/VBZ
for/IN
a/DT
combination/NN
of/IN
cash/NN
and/CC
securities/NNS
valued/VBN
by/IN
StatesWest/NNP
at/IN
$/$
10/CD
a/DT
Mesa/NNP
share/NN
./.
Both/DT
companies/NNS
are/VBP
regional/JJ
carriers/NNS
in/IN
the/DT
Southwest/NNP
./.
When/WRB
it/PRP
made/VBD
the/DT
offer/NN
,/,
StatesWest/NNP
declined/VBD
to/TO
disclose/VB
details/NNS
and/CC
asked/VBD
Mesa/NNP
to/TO
do/VB
the/DT
same/JJ
./.
But/CC
Farmington/NNP
,/,
N.M.-based/JJ
Mesa/NNP
said/VBD
the/DT
offer/NN
was/VBD
for/IN
$/$
7/CD
in/IN
cash/NN
and/CC
unspecified/JJ
StatesWest/NNP
securities/NNS
valued/VBN
at/IN
$/$
3/CD
a/DT
share/NN
./.
Based/VBN
on/IN
the/DT
number/NN
of/IN
Mesa/NNP
shares/NNS
outstanding/JJ
not/RB
already/RB
owned/VBN
by/IN
StatesWest/NNP
,/,
the/DT
proposed/JJ
takeover/NN
would/MD
have/VB
a/DT
value/NN
of/IN
about/RB
$/$
15.3/CD
million/CD
./.
StatesWest/NNP
owns/VBZ
7.25/CD
%/NN
of/IN
Mesa/NNP
./.
Last/JJ
week/NN
,/,
Mesa/NNP
rejected/VBD
a/DT
general/JJ
proposal/NN
from/IN
StatesWest/JJS
that/IN
the/DT
two/CD
carriers/NNS
combine/VB
./.
In/IN
response/NN
to/TO
the/DT
specific/JJ
offer/NN
,/,
Gary/NNP
Risley/NNP
,/,
Mesa/NNP
vice/NN
president/NN
,/,
said/VBD
management/NN
will/MD
ask/VB
directors/NNS
to/TO
employ/VB
a/DT
financial/JJ
consultant/NN
to/TO
advise/VB
them/PRP
./.
Hawker/NNP
Siddeley/NNP
Group/NNP
PLC/NNP
,/,
a/DT
U.K./NNP
engineering/NN
company/NN
,/,
reported/VBD
a/DT
16/CD
%/NN
jump/NN
in/IN
pretax/JJ
profit/NN
for/IN
the/DT
six-month/JJ
period/NN
ending/VBG
June/NNP
30/CD
./.
Pretax/JJ
profit/NN
rose/VBD
to/TO
#/#
93.2/CD
million/CD
$/$
146.8/CD
million/CD
#/#
80.6/CD
million/CD
$/$
127/CD
million/CD
analysts/NNS
'/POS
expectations/NNS
,/,
which/WDT
ranged/VBD
from/IN
#/#
90/CD
million/CD
to/TO
#/#
95/CD
million/CD
./.
Profit/NN
after/IN
taxes/NNS
and/CC
minority/NN
interests/NNS
increased/VBD
16/CD
%/NN
to/TO
#/#
55.2/CD
million/CD
from/IN
#/#
47.6/CD
million/CD
in/IN
the/DT
year-earlier/JJ
period/NN
,/,
while/IN
earnings/NNS
per/IN
share/NN
rose/VBD
16/CD
%/NN
to/TO
27.9/CD
pence/NNS
44/CD
cents/NNS
24.1/CD
pence/NNS
38/CD
cents/NNS
Hawker/NNP
Siddeley/NNP
said/VBD
its/PRP$
core/JJ
electrical/JJ
products/NNS
division/NN
enjoyed/VBD
strong/JJ
growth/NN
,/,
with/IN
a/DT
20/CD
%/NN
rise/NN
in/IN
operating/NN
profit/NN
during/IN
the/DT
period/NN
./.
Fleet\/Norstar/NNP
Financial/NNP
Group/NNP
reported/VBD
a/DT
12/CD
%/NN
increase/NN
in/IN
net/JJ
income/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
led/VBN
by/IN
a/DT
43/CD
%/NN
gain/NN
in/IN
its/PRP$
financial/JJ
services/NNS
group/NN
./.
Fleet/NNP
's/POS
net/NN
was/VBD
$/$
96.4/CD
million/CD
,/,
or/CC
86/CD
cents/NNS
a/DT
primary/JJ
share/NN
,/,
compared/VBN
with/IN
$/$
85.8/CD
million/CD
,/,
or/CC
79/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
The/DT
Providence/NNP
,/,
R.I./NNP
,/,
financial/JJ
services/NNS
group/NN
,/,
which/WDT
includes/VBZ
commercial-credit/NN
,/,
leasing/NN
and/CC
mortgage-banking/NN
operations/NNS
,/,
contributed/VBD
$/$
30.6/CD
million/CD
to/TO
net/NN
,/,
up/RB
from/IN
last/JJ
year/NN
's/POS
$/$
21.3/CD
million/CD
./.
Fleet/NNP
also/RB
noted/VBD
that/IN
,/,
unlike/IN
other/JJ
banking/NN
companies/NNS
in/IN
the/DT
Northeast/NNP
,/,
it/PRP
has/VBZ
been/VBN
only/RB
marginally/RB
hurt/VBN
by/IN
nonperforming/JJ
loans/NNS
that/WDT
have/VBP
resulted/VBN
from/IN
the/DT
slumping/VBG
regional/JJ
real/JJ
estate/NN
market/NN
./.
Fleet/NNP
reported/VBD
nine-month/JJ
net/NN
of/IN
$/$
279.0/CD
million/CD
,/,
or/CC
$/$
2.51/CD
a/DT
primary/JJ
share/NN
,/,
up/RB
from/IN
$/$
248.2/CD
million/CD
,/,
or/CC
$/$
2.28/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Benj/NNP
./.
Franklin/NNP
Federal/NNP
Savings/NNP
&/CC
Loan/NNP
Association/NNP
said/VBD
it/PRP
expects/VBZ
to/TO
post/VB
a/DT
third-quarter/JJ
net/JJ
loss/NN
of/IN
about/RB
$/$
8/CD
million/CD
,/,
or/CC
$/$
1.04/CD
a/DT
share/NN
,/,
as/IN
a/DT
result/NN
of/IN
adding/VBG
$/$
11/CD
million/CD
in/IN
loan-loss/JJ
reserves/NNS
./.
The/DT
Portland/NNP
,/,
Ore./NNP
,/,
thrift/NN
,/,
which/WDT
has/VBZ
$/$
5.2/CD
billion/CD
of/IN
assets/NNS
,/,
had/VBD
net/JJ
income/NN
in/IN
last/JJ
year/NN
's/POS
third/JJ
quarter/NN
of/IN
$/$
1.8/CD
million/CD
,/,
or/CC
23/CD
cents/NNS
a/DT
share/NN
./.
Franklin/NNP
said/VBD
it/PRP
expects/VBZ
to/TO
report/VB
earnings/NNS
for/IN
the/DT
latest/JJS
quarter/NN
next/IN
week/NN
./.
The/DT
additional/JJ
reserves/NNS
relate/VBP
to/TO
possible/JJ
write-downs/NNS
of/IN
certain/JJ
assets/NNS
held/VBN
by/IN
Franklin/NNP
and/CC
its/PRP$
subsidiaries/NNS
and/CC
the/DT
default/NN
of/IN
a/DT
bond/NN
in/IN
its/PRP$
investment/NN
portfolio/NN
,/,
the/DT
thrift/NN
said/VBD
./.
According/VBG
to/TO
a/DT
spokeswoman/NN
,/,
they/PRP
also/RB
relate/VBP
to/TO
changes/NNS
Franklin/NNP
will/MD
have/VB
to/TO
make/VB
in/IN
its/PRP$
accounting/NN
procedures/NNS
to/TO
comply/VB
with/IN
new/JJ
federal/JJ
capitalization/NN
requirements/NNS
for/IN
thrifts/NNS
./.
The/DT
company/NN
's/POS
shares/NNS
closed/VBD
yesterday/NN
at/IN
$/$
4.25/CD
,/,
off/RB
25/CD
cents/NNS
,/,
in/IN
national/JJ
over-the-counter/JJ
trading/NN
./.
Arkla/NNP
Inc./NNP
said/VBD
that/IN
as/IN
part/NN
of/IN
a/DT
program/NN
to/TO
improve/VB
profitability/NN
it/PRP
will/MD
take/VB
a/DT
total/NN
of/IN
$/$
189/CD
million/CD
in/IN
after-tax/JJ
charges/NNS
by/IN
year/NN
end/NN
./.
It/PRP
also/RB
announced/VBD
an/DT
initial/JJ
public/JJ
offering/NN
of/IN
18/CD
%/NN
of/IN
its/PRP$
gas/NN
exploration/NN
and/CC
production/NN
subsidiary/NN
./.
The/DT
Shreveport/NNP
,/,
La./NNP
,/,
natural/JJ
gas/NN
company/NN
said/VBD
the/DT
charges/NNS
,/,
though/IN
partially/RB
offset/VBN
by/IN
a/DT
one-time/JJ
gain/NN
from/IN
the/DT
offering/NN
,/,
will/MD
result/VB
in/IN
a/DT
full-year/JJ
after-tax/JJ
loss/NN
./.
Last/JJ
year/NN
,/,
the/DT
company/NN
had/VBD
net/JJ
income/NN
of/IN
$/$
117.3/CD
million/CD
,/,
or/CC
$/$
1.30/CD
a/DT
share/NN
./.
Arkla/NNP
said/VBD
it/PRP
will/MD
report/VB
$/$
179/CD
milllion/NN
in/IN
one-time/JJ
charges/NNS
against/IN
continuing/JJ
operations/NNS
for/IN
the/DT
third/JJ
quarter/NN
,/,
reflecting/VBG
settlement/NN
of/IN
certain/JJ
natural/JJ
gas/NN
contracts/NNS
./.
It/PRP
said/VBD
it/PRP
will/MD
take/VB
a/DT
$/$
10/CD
million/CD
fourth-quarter/JJ
charge/NN
against/IN
discontinued/JJ
operations/NNS
,/,
reflecting/VBG
certain/JJ
write-downs/NNS
and/CC
the/DT
planned/JJ
sale/NN
of/IN
a/DT
unit/NN
./.
Arkla/NNP
said/VBD
its/PRP$
initial/JJ
offering/NN
of/IN
18/CD
%/NN
of/IN
Arkla/NNP
Exploration/NNP
Co./NNP
is/VBZ
expected/VBN
to/TO
result/VB
in/IN
a/DT
net/JJ
gain/NN
of/IN
about/RB
$/$
90/CD
million/CD
,/,
which/WDT
will/MD
be/VB
used/VBN
to/TO
pay/VB
down/RP
Arkla/NNP
debt/NN
./.
Arkla/NNP
Exploration/NNP
owns/VBZ
sizable/JJ
gas/NN
and/CC
crude-oil/NN
reserves/NNS
in/IN
the/DT
South/NNP
and/CC
Southwest/NNP
./.
South/NNP
Africa/NNP
negotiated/VBD
a/DT
new/JJ
debt/NN
agreement/NN
with/IN
its/PRP$
major/JJ
foreign/JJ
creditors/NNS
for/IN
about/RB
$/$
8/CD
billion/CD
of/IN
its/PRP$
foreign/JJ
debt/NN
outstanding/JJ
,/,
said/VBD
Chris/NNP
Stals/NNP
,/,
governor/NN
of/IN
the/DT
Reserve/NNP
Bank/NNP
and/CC
the/DT
country/NN
's/POS
chief/JJ
debt/NN
negotiator/NN
./.
The/DT
new/JJ
agreement/NN
will/MD
last/VB
for/IN
3/CD
1\/2/CD
years/NNS
starting/VBG
July/NNP
1/CD
,/,
1990/CD
,/,
when/WRB
the/DT
current/JJ
agreement/NN
expires/VBZ
./.
The/DT
announcement/NN
coincides/VBZ
with/IN
the/DT
start/NN
of/IN
the/DT
Commonwealth/NNP
Ministers/NNP
Conference/NNP
in/IN
Kuala/NNP
Lumpur/NNP
,/,
where/WRB
proposals/NNS
for/IN
renewed/JJ
sanctions/NNS
against/IN
South/NNP
Africa/NNP
,/,
including/VBG
moves/NNS
to/TO
block/VB
settling/VBG
of/IN
a/DT
new/JJ
debt/NN
agreement/NN
,/,
were/VBD
scheduled/VBN
to/TO
be/VB
discussed/VBN
./.
As/RB
with/IN
the/DT
previous/JJ
pact/NN
,/,
the/DT
new/JJ
agreement/NN
covers/VBZ
the/DT
country/NN
's/POS
debt/NN
``/``
inside/IN
the/DT
net/NN
,/,
''/''
which/WDT
applies/VBZ
mainly/RB
to/TO
repayments/NNS
due/JJ
to/TO
overseas/JJ
creditor/NN
banks/NNS
by/IN
the/DT
private/JJ
sector/NN
./.
The/DT
agreement/NN
calls/VBZ
for/IN
South/JJ
African/JJ
debtors/NNS
to/TO
make/VB
repayments/NNS
in/IN
eight/CD
installments/NNS
,/,
starting/VBG
in/IN
December/NNP
of/IN
next/JJ
year/NN
./.
The/DT
redemption/NN
then/RB
would/MD
be/VB
at/IN
1.5/CD
%/NN
of/IN
the/DT
total/NN
debt/NN
,/,
increasing/VBG
to/TO
2.5/CD
%/NN
in/IN
February/NNP
1991/CD
,/,
and/CC
to/TO
3/CD
%/NN
at/IN
six-month/JJ
intervals/NNS
thereafter/RB
./.
A/DT
revised/JJ
provision/NN
would/MD
be/VB
included/VBN
for/IN
the/DT
conversion/NN
of/IN
short-term/JJ
claims/NNS
inside/IN
the/DT
net/NN
to/TO
long-term/JJ
loans/NNS
outside/IN
the/DT
net/NN
./.
These/DT
claims/NNS
would/MD
be/VB
repayable/JJ
over/IN
a/DT
10-year/JJ
period/NN
./.
Foreign/JJ
debt/NN
falling/VBG
outside/IN
the/DT
net/NN
of/IN
affected/VBN
indebtedness/NN
--/:
which/WDT
Mr./NNP
Stahl/NNP
estimated/VBD
at/IN
$/$
12/CD
billion/CD
--/:
would/MD
remain/VB
not/RB
subject/JJ
to/TO
the/DT
debt/NN
arrangements/NNS
./.
New/NNP
York/NNP
Times/NNP
Co./NNP
said/VBD
net/JJ
income/NN
rose/VBD
in/IN
the/DT
third/JJ
quarter/NN
because/IN
of/IN
a/DT
one-time/JJ
gain/NN
on/IN
the/DT
sale/NN
of/IN
the/DT
company/NN
's/POS
cable-TV/NN
system/NN
./.
Net/NN
surged/VBD
to/TO
$/$
210.8/CD
million/CD
,/,
or/CC
$/$
2.68/CD
a/DT
share/NN
,/,
from/IN
$/$
26.7/CD
million/CD
,/,
or/CC
33/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
The/DT
latest/JJS
quarter/NN
included/VBD
a/DT
gain/NN
of/IN
$/$
193.3/CD
million/CD
,/,
or/CC
$/$
2.46/CD
a/DT
share/NN
,/,
from/IN
the/DT
sale/NN
of/IN
New/NNP
York/NNP
Times/NNP
Cable/NNP
,/,
completed/VBN
in/IN
August/NNP
./.
Exclusive/JJ
of/IN
the/DT
gain/NN
,/,
operating/NN
profit/NN
declined/VBD
35/CD
%/NN
to/TO
$/$
16.4/CD
million/CD
,/,
or/CC
21/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
25.2/CD
million/CD
,/,
or/CC
31/CD
cents/NNS
a/DT
share/NN
./.
The/DT
decline/NN
primarily/RB
reflected/VBD
the/DT
dilution/NN
from/IN
acquiring/VBG
McCall/NNP
's/POS
,/,
Golf/NNP
World/NNP
U.S./NNP
Sailing/NNP
World/NNP
magazines/NNS
;/:
lower/JJR
equity/NN
earnings/NNS
from/IN
the/DT
forest-products/NNS
group/NN
because/IN
of/IN
price/NN
discounting/NN
and/CC
an/DT
unfavorable/JJ
exchange/NN
rate/NN
,/,
and/CC
an/DT
8.7/CD
%/NN
decline/NN
in/IN
advertising/NN
linage/NN
at/IN
the/DT
New/NNP
York/NNP
Times/NNP
,/,
the/DT
company/NN
's/POS
flagship/JJ
newspaper/NN
./.
Advertising/NN
volume/NN
at/IN
the/DT
company/NN
's/POS
35/CD
regional/JJ
newspapers/NNS
decreased/VBD
1.1/CD
%/NN
./.
The/DT
company/NN
said/VBD
the/DT
negative/JJ
factors/NNS
are/VBP
expected/VBN
to/TO
continue/VB
into/IN
next/JJ
year/NN
./.
Revenue/NN
rose/VBD
6.4/CD
%/NN
to/TO
$/$
415.3/CD
million/CD
from/IN
$/$
390.5/CD
million/CD
./.
Democrat/NNP
Gene/NNP
Taylor/NNP
won/VBD
a/DT
special/JJ
election/NN
to/TO
fill/VB
the/DT
congressional/JJ
seat/NN
vacated/VBN
by/IN
the/DT
death/NN
of/IN
Republican/NNP
Larkin/NNP
Smith/NNP
,/,
taking/VBG
back/RP
the/DT
GOP/NNP
's/POS
lone/JJ
redoubt/NN
in/IN
Mississippi/NNP
's/POS
House/NNP
delegation/NN
./.
Mr./NNP
Taylor/NNP
's/POS
overwhelming/JJ
victory/NN
against/IN
Republican/NNP
Tom/NNP
Anderson/NNP
reclaims/VBZ
a/DT
seat/NN
the/DT
Republicans/NNPS
had/VBD
held/VBN
for/IN
17/CD
years/NNS
and/CC
gives/VBZ
the/DT
Democrats/NNPS
their/PRP$
fifth/JJ
victory/NN
in/IN
the/DT
seven/CD
special/JJ
House/NNP
elections/NNS
held/VBN
this/DT
year/NN
./.
Mr./NNP
Taylor/NNP
,/,
a/DT
36-year-old/JJ
state/NN
senator/NN
from/IN
Bay/NNP
St./NNP
Louis/NNP
,/,
won/VBD
65/CD
%/NN
of/IN
the/DT
vote/NN
in/IN
a/DT
district/NN
that/WDT
has/VBZ
voted/VBN
Republican/JJ
in/IN
the/DT
past/JJ
five/CD
presidential/JJ
elections/NNS
and/CC
that/DT
was/VBD
once/RB
represented/VBN
by/IN
Republican/NNP
U.S./NNP
Sen./NNP
Trent/NNP
Lott/NNP
./.
Mr./NNP
Taylor/NNP
's/POS
victory/NN
was/VBD
an/DT
embarrassment/NN
for/IN
both/DT
state/NN
and/CC
national/JJ
Republicans/NNPS
./.
Mr./NNP
Anderson/NNP
,/,
a/DT
former/JJ
Lott/NNP
aide/NN
,/,
received/VBD
campaign/NN
assistance/NN
from/IN
the/DT
senator/NN
and/CC
from/IN
President/NNP
Bush/NNP
,/,
who/WP
visited/VBD
the/DT
district/NN
last/JJ
week/NN
./.
Even/RB
so/RB
,/,
Mr./NNP
Taylor/NNP
carried/VBD
all/DT
but/IN
one/CD
of/IN
the/DT
district/NN
's/POS
dozen/NN
counties/NNS
./.
Rep./NNP
Smith/NNP
died/VBD
in/IN
a/DT
plane/NN
crash/NN
on/IN
Aug./NNP
13/CD
./.
Wall/NNP
Street/NNP
Journal/NNP
reporters/NNS
called/VBD
companies/NNS
with/IN
headquarters/NNS
or/CC
facilities/NNS
in/IN
the/DT
Bay/NNP
area/NN
in/IN
a/DT
bid/NN
to/TO
assess/VB
the/DT
damage/NN
to/TO
their/PRP$
operations/NNS
caused/VBN
by/IN
Tuesday/NNP
's/POS
earthquake/NN
./.
The/DT
calls/NNS
reached/VBD
many/JJ
,/,
but/CC
certainly/RB
not/RB
all/DT
,/,
of/IN
the/DT
publicly/RB
held/VBN
companies/NNS
with/IN
operations/NNS
in/IN
the/DT
area/NN
./.
In/IN
most/JJS
cases/NNS
damage/NN
to/TO
company/NN
facilities/NNS
and/CC
operations/NNS
was/VBD
minimal/JJ
./.
ADIA/NNP
SERVICES/NNP
INC./NNP
,/,
Menlo/NNP
Park/NNP
,/,
temporary/JJ
personnel/NNS
agency/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
504/CD
million/CD
,/,
OTC/NNP
,/,
said/VBD
all/DT
30/CD
offices/NNS
in/IN
Bay/NNP
area/NN
were/VBD
working/VBG
,/,
but/CC
in/IN
various/JJ
states/NNS
of/IN
disarray/NN
./.
Business/NN
was/VBD
slow/JJ
because/IN
many/JJ
companies/NNS
were/VBD
closed/JJ
yesterday/NN
./.
ADVANCED/NNP
MICRO/NNP
DEVICES/NNP
INC./NNP
,/,
Sunnyvale/NNP
,/,
integrated/JJ
circuit/NN
maker/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
1.12/CD
billion/CD
,/,
NYSE/NNP
,/,
had/VBD
only/JJ
minor/JJ
structural/JJ
damage/NN
./.
Most/JJS
of/IN
its/PRP$
4,500/CD
workers/NNS
were/VBD
at/IN
work/NN
yesterday/NN
,/,
and/CC
no/DT
production/NN
slowdown/NN
was/VBD
anticipated/VBN
as/RB
long/RB
as/IN
electricity/NN
remains/VBZ
available/JJ
./.
AMDAHL/NNP
CORP./NNP
,/,
Sunnyvale/NNP
,/,
computer/NN
maker/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
1.8/CD
billion/CD
,/,
Amex/NNP
,/,
was/VBD
closed/JJ
yesterday/NN
and/CC
no/DT
damage/NN
estimates/NNS
were/VBD
available/JJ
./.
AMERICAN/NNP
BUILDING/NNP
MAINTENANCE/NNP
INDUSTRIES/NNP
Inc./NNP
,/,
San/NNP
Francisco/NNP
,/,
provider/NN
of/IN
maintenance/NN
services/NNS
,/,
annual/JJ
revenue/NN
of/IN
$/$
582/CD
million/CD
,/,
NYSE/NNP
,/,
had/VBD
some/DT
damage/NN
to/TO
headquarters/NN
and/CC
lost/VBD
phone/NN
service/NN
,/,
but/CC
operations/NNS
were/VBD
moved/VBN
to/TO
a/DT
branch/NN
office/NN
and/CC
are/VBP
running/VBG
smoothly/RB
thanks/NNS
to/TO
a/DT
decentralized/JJ
computer/NN
system/NN
the/DT
company/NN
had/VBD
developed/VBN
before/IN
the/DT
quake/NN
./.
AMERICAN/NNP
PRESIDENT/NNP
COS./NNP
,/,
Oakland/NNP
,/,
shipping/NN
concern/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
2.2/CD
billion/CD
,/,
NYSE/NNP
,/,
had/VBD
little/JJ
damage/NN
to/TO
the/DT
cranes/NNS
,/,
dock/NN
or/CC
rail/NN
track/NN
at/IN
its/PRP$
container-ship/NN
facility/NN
near/IN
the/DT
collapsed/JJ
Route/NNP
880/NNP
overpass/NN
./.
The/DT
company/NN
expects/VBZ
to/TO
work/VB
a/DT
ship/NN
due/JJ
in/IN
today/NN
with/IN
minimal/JJ
delays/NNS
,/,
despite/IN
sporadic/JJ
power/NN
./.
ANACOMP/NNP
INC./NNP
,/,
Indianapolis/NNP
,/,
NYSE/NNP
,/,
said/VBD
its/PRP$
Xidex/NNP
Corp./NNP
unit/NN
,/,
a/DT
Sunnyvale/NNP
maker/NN
of/IN
computer/NN
disks/NNS
and/CC
microfilm/NN
with/IN
annual/JJ
sales/NNS
of/IN
$/$
637/CD
million/CD
,/,
had/VBD
only/JJ
minor/JJ
damage/NN
and/CC
is/VBZ
fully/RB
operational/JJ
./.
ANTHEM/NNP
ELECTRONICS/NNP
INC./NNP
,/,
San/NNP
Jose/NNP
,/,
distributor/NN
of/IN
electronic/JJ
parts/NNS
,/,
annual/JJ
sales/NNS
of/IN
about/RB
$/$
300/CD
million/CD
,/,
NYSE/NNP
,/,
sustained/VBD
very/RB
little/JJ
damage/NN
,/,
anticipated/VBN
being/VBG
``/``
in/IN
100/CD
%/NN
operating/NN
condition/NN
''/''
by/IN
midday/NN
./.
APPLE/NNP
COMPUTER/NNP
CO./NNP
,/,
Cupertino/NNP
,/,
computer/NN
maker/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
4.07/CD
billion/CD
,/,
OTC/NNP
,/,
sustained/VBD
some/DT
structural/JJ
damage/NN
./.
Offices/NNS
were/VBD
closed/JJ
yesterday/NN
./.
APPLIED/NNP
MATERIALS/NNP
INC./NNP
,/,
Santa/NNP
Clara/NNP
,/,
maker/NN
of/IN
computer-chip/NN
machine/NN
systems/NNS
,/,
annual/JJ
sales/NNS
of/IN
$/$
490/CD
million/CD
,/,
OTC/NNP
,/,
had/VBD
slight/JJ
damage/NN
to/TO
headquarters/NN
,/,
no/DT
damage/NN
to/TO
manufacturing/NN
plants/NNS
./.
Company/NN
,/,
with/IN
1,750/CD
workers/NNS
in/IN
area/NN
,/,
is/VBZ
fully/RB
functional/JJ
./.
ATARI/NNP
CORP./NNP
,/,
Sunnyvale/NNP
,/,
maker/NN
of/IN
personal/JJ
computers/NNS
and/CC
software/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
700/CD
million/CD
,/,
Amex/NNP
,/,
had/VBD
minor/JJ
damage/NN
and/CC
expects/VBZ
to/TO
be/VB
fully/RB
operational/JJ
by/IN
tomorrow/NN
./.
BANKAMERICA/NNP
Corp./NNP
,/,
San/NNP
Francisco/NNP
,/,
bank/NN
holding/NN
company/NN
,/,
annual/JJ
revenue/NN
of/IN
$/$
10.2/CD
billion/CD
,/,
NYSE/NNP
,/,
yesterday/NN
had/VBD
no/DT
power/NN
at/IN
its/PRP$
headquarters/NNS
,/,
80/CD
of/IN
its/PRP$
433/CD
Northern/NNP
California/NNP
branches/NNS
were/VBD
closed/JJ
and/CC
250/CD
of/IN
750/CD
automatic/JJ
teller/NN
machines/NNS
were/VBD
closed/JJ
in/IN
the/DT
area/NN
./.
Securities/NNS
trading/NN
was/VBD
conducted/VBN
in/IN
a/DT
backup/JJ
facility/NN
in/IN
Concord/NNP
./.
BECHTEL/NNP
CORP./NNP
,/,
San/NNP
Francisco/NNP
,/,
engineering/NN
and/CC
construction/NN
concern/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
4/CD
billion/CD
,/,
had/VBD
only/RB
minor/JJ
structural/JJ
damage/NN
at/IN
its/PRP$
three/CD
buildings/NNS
in/IN
the/DT
city/NN
,/,
but/CC
its/PRP$
computers/NNS
were/VBD
knocked/VBN
out/RP
./.
Backup/JJ
computer/NN
tapes/NNS
were/VBD
hand-carried/VBN
to/TO
an/DT
IBM/NNP
office/NN
in/IN
Philadelphia/NNP
,/,
and/CC
the/DT
company/NN
expects/VBZ
its/PRP$
mainframe/NN
to/TO
be/VB
up/RB
in/IN
a/DT
few/JJ
days/NNS
./.
Workers/NNS
,/,
except/IN
for/IN
senior/JJ
management/NN
,/,
were/VBD
asked/VBN
not/RB
to/TO
report/VB
for/IN
work/NN
yesterday/NN
./.
BIO-RAD/NNP
LABORATORIES/NNP
INC./NNP
,/,
Hercules/NNP
,/,
biological/JJ
research/NN
and/CC
clinical-products/NNS
leader/NN
,/,
$/$
200/CD
million/CD
in/IN
annual/JJ
sales/NNS
,/,
Amex/NNP
,/,
said/VBD
its/PRP$
Richmond/NNP
warehouse/NN
north/RB
of/IN
San/NNP
Francisco/NNP
was/VBD
closed/JJ
because/IN
of/IN
debris/NN
and/CC
fallen/JJ
shelves/NNS
./.
It/PRP
expects/VBZ
to/TO
be/VB
fully/RB
operational/JJ
by/IN
next/JJ
week/NN
./.
BORLAND/NNP
INTERNATIONAL/NNP
,/,
Scotts/NNP
Valley/NNP
,/,
personal/JJ
computer/NN
and/CC
software/NN
designer/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
72/CD
million/CD
,/,
had/VBD
heavy/JJ
damage/NN
to/TO
its/PRP$
headquarters/NN
and/CC
was/VBD
conducting/VBG
business/NN
from/IN
its/PRP$
parking/NN
lot/NN
./.
The/DT
company/NN
does/VBZ
n't/RB
expect/VB
any/DT
shipping/NN
delays/NNS
./.
BUSINESSLAND/NNP
INC./NNP
,/,
San/NNP
Jose/NNP
,/,
computer/NN
retail/NN
company/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
1.1/CD
billion/CD
,/,
NYSE/NNP
,/,
said/VBD
all/DT
16/CD
corporate/JJ
office/NN
and/CC
stores/NNS
in/IN
the/DT
area/NN
were/VBD
open/JJ
with/IN
the/DT
exception/NN
of/IN
a/DT
retail/JJ
center/NN
in/IN
San/NNP
Francisco/NNP
's/POS
business/NN
district/NN
./.
That/DT
facility/NN
should/MD
reopen/VB
today/NN
./.
CARTER/NNP
HAWLEY/NNP
HALE/NNP
STORES/NNP
Inc./NNP
,/,
Los/NNP
Angeles/NNP
,/,
retailer/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
2.79/CD
billion/CD
,/,
NYSE/NNP
,/,
said/VBD
nine/CD
of/IN
its/PRP$
22/CD
Emporium/NNP
stores/NNS
in/IN
the/DT
area/NN
were/VBD
closed/JJ
because/IN
of/IN
water/NN
damage/NN
,/,
broken/JJ
windows/NNS
and/CC
fallen/JJ
displays/NNS
./.
A/DT
spokesman/NN
said/VBD
sales/NNS
are/VBP
expected/VBN
to/TO
be/VB
hurt/VBN
,/,
but/CC
the/DT
losses/NNS
are/VBP
covered/VBN
by/IN
insurance/NN
./.
CHEVRON/NNP
CORP./NNP
,/,
San/NNP
Francisco/NNP
,/,
oil/NN
company/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
25.2/CD
billion/CD
,/,
NYSE/NNP
,/,
had/VBD
minor/JJ
damage/NN
to/TO
downtown/JJ
headquarters/NNS
,/,
but/CC
structural/JJ
damage/NN
closed/VBD
two/CD
of/IN
its/PRP$
seven/CD
buildings/NNS
in/IN
San/NNP
Ramone/NNP
industrial/JJ
park/NN
./.
Company/NN
expects/VBZ
to/TO
be/VB
fully/RB
operational/JJ
by/IN
next/JJ
week/NN
./.
CLOROX/NNP
Co./NNP
,/,
Oakland/NNP
,/,
consumer/NN
products/NNS
,/,
annual/JJ
sales/NNS
of/IN
$/$
1.36/CD
billion/CD
,/,
NYSE/NNP
,/,
was/VBD
closed/VBN
yesterday/NN
but/CC
plans/VBZ
to/TO
reopen/VB
today/NN
or/CC
tomorrow/NN
./.
Meanwhile/RB
,/,
orders/NNS
are/VBP
being/VBG
routed/VBN
through/IN
Kingsford/NNP
Products/NNP
unit/NN
in/IN
Louisville/NNP
,/,
Ky./NNP
,/,
but/CC
computer/NN
problems/NNS
mean/VBP
they/PRP
must/MD
be/VB
processed/VBN
manually/RB
./.
Expects/NNS
to/TO
be/VB
fully/RB
operational/JJ
early/RB
next/JJ
week/NN
./.
COHERENT/NNP
INC./NNP
,/,
Palo/NNP
Alto/NNP
,/,
laser/NN
maker/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
159/CD
million/CD
,/,
was/VBD
closed/JJ
yesterday/NN
but/CC
expects/VBZ
to/TO
reopen/VB
today/NN
./.
CONSOLIDATED/NNP
FREIGHTWAYS/NNP
INC./NNP
,/,
Menlo/NNP
Park/NNP
,/,
trucking/NN
company/NN
,/,
$/$
2.69/CD
billion/CD
in/IN
annual/JJ
sales/NNS
,/,
NYSE/NNP
,/,
had/VBD
structural/JJ
damage/NN
to/TO
CF/NNP
Motor/NNP
Freight/NNP
subsidiary/NN
's/POS
office/NN
in/IN
Palo/NNP
Alto/NNP
,/,
no/DT
damage/NN
in/IN
Menlo/NNP
Park/NNP
./.
COOPER/NNP
COMPANIES/NNP
INC./NNP
,/,
Palo/NNP
Alto/NNP
,/,
medical/JJ
products/NNS
maker/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
628/CD
million/CD
,/,
NYSE/NNP
,/,
had/VBD
little/JJ
damage/NN
and/CC
was/VBD
in/IN
full/JJ
operation/NN
yesterday/NN
./.
DAYTON/NNP
HUDSON/NNP
CORP./NNP
,/,
Minneapolis/NNP
,/,
retailer/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
12.2/CD
billion/CD
,/,
NYSE/NNP
,/,
closed/VBD
seven/CD
of/IN
its/PRP$
13/CD
Bay-area/JJ
Target/NNP
discount/NN
stores/NNS
and/CC
nine/CD
of/IN
its/PRP$
20/CD
Mervyn/NNP
's/POS
department/NN
stores/NNS
because/RB
of/IN
pending/VBG
reviews/NNS
by/IN
structural/JJ
engineers/NNS
or/CC
requests/NNS
from/IN
authorities/NNS
,/,
who/WP
were/VBD
trying/VBG
to/TO
keep/VB
shoppers/NNS
off/IN
the/DT
freeways/NNS
./.
The/DT
company/NN
expects/VBZ
to/TO
reopen/VB
three/CD
Target/NNP
stores/NNS
and/CC
all/DT
but/IN
two/CD
Mervyn/NNP
's/POS
today/NN
or/CC
tomorrow/NN
./.
DIASONICS/NNP
INC./NNP
,/,
South/NNP
San/NNP
Francisco/NNP
,/,
maker/NN
of/IN
magnetic/JJ
resonance/NN
imaging/NN
equipment/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
281/CD
million/CD
,/,
Amex/NNP
,/,
had/VBD
minor/JJ
damage/NN
,/,
mostly/RB
in/IN
a/DT
stockroom/NN
./.
The/DT
company/NN
plans/VBZ
to/TO
be/VB
fully/RB
operational/JJ
today/NN
./.
DIGITAL/NNP
EQUIPMENT/NNP
CORP./NNP
,/,
Maynard/NNP
,/,
Mass./NNP
,/,
computer/NN
maker/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
12.7/CD
billion/CD
,/,
NYSE/NNP
,/,
had/VBD
structural/JJ
damage/NN
at/IN
its/PRP$
San/NNP
Francisco/NNP
sales/NNS
office/NN
but/CC
no/DT
appreciable/JJ
damage/NN
elsewhere/RB
in/IN
the/DT
area/NN
,/,
including/VBG
its/PRP$
Cupertino/NNP
plant/NN
./.
DREYER'S/NNP
GRAND/NNP
ICE/NNP
CREAM/NNP
INC./NNP
,/,
Oakland/NNP
,/,
ice/NN
cream/NN
maker/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
225/CD
million/CD
,/,
OTC/NNP
,/,
said/VBD
it/PRP
is/VBZ
delivering/VBG
ice/NN
cream/NN
wherever/WRB
roads/NNS
are/VBP
passable/JJ
./.
EVEREX/NNP
SYSTEMS/NNP
INC./NNP
,/,
Fremont/NNP
,/,
maker/NN
of/IN
personal/JJ
computers/NNS
and/CC
peripherals/NNS
,/,
annual/JJ
sales/NNS
of/IN
$/$
377/CD
million/CD
,/,
OTC/NNP
,/,
had/VBD
minor/JJ
damage/NN
and/CC
was/VBD
almost/RB
fully/RB
operational/JJ
yesterday/NN
./.
EXXON/NNP
Corp./NNP
,/,
New/NNP
York/NNP
,/,
oil/NN
company/NN
,/,
NYSE/NNP
,/,
said/VBD
its/PRP$
refinery/NN
northeast/RB
of/IN
San/NNP
Francisco/NNP
was/VBD
operating/VBG
at/IN
a/DT
slightly/RB
reduced/VBN
rate/NN
as/IN
a/DT
precaution/NN
in/IN
case/NN
of/IN
aftershocks/NNS
./.
FORD/NNP
MOTOR/NNP
CO./NNP
,/,
Dearborn/NNP
,/,
Mich./NNP
,/,
auto/NN
maker/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
92.4/CD
billion/CD
,/,
NYSE/NNP
,/,
said/VBD
its/PRP$
three/CD
Ford/NNP
Aerospace/NNP
unit/NN
facilities/NNS
in/IN
the/DT
Bay/NNP
area/NN
,/,
including/VBG
a/DT
satellite-assembly/NN
operation/NN
in/IN
Palo/NNP
Alto/NNP
,/,
had/VBD
no/DT
major/JJ
damage/NN
./.
GAP/NNP
Inc./NNP
,/,
San/NNP
Bruno/NNP
,/,
clothing/NN
retailer/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
1.25/CD
billion/CD
,/,
NYSE/NNP
,/,
expects/VBZ
most/JJS
of/IN
its/PRP$
stores/NNS
to/TO
return/VB
to/TO
full/JJ
operation/NN
and/CC
all/DT
2,500/CD
of/IN
its/PRP$
Bay-area/JJ
workers/NNS
to/TO
be/VB
back/RB
at/IN
work/NN
by/IN
today/NN
./.
GENENTECH/NNP
INC./NNP
,/,
South/NNP
San/NNP
Francisco/NNP
,/,
biotechnology/NN
company/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
334.8/CD
million/CD
,/,
NYSE/NNP
,/,
sustained/VBD
no/DT
major/JJ
damage/NN
and/CC
expects/VBZ
to/TO
be/VB
fully/RB
operational/JJ
today/NN
./.
GENERAL/NNP
ELECTRIC/NNP
CO./NNP
,/,
Fairfield/NNP
,/,
Conn./NNP
,/,
consumer/NN
,/,
industrial/JJ
products/NNS
and/CC
broadcasting/VBG
concern/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
50/CD
billion/CD
,/,
NYSE/NNP
,/,
said/VBD
its/PRP$
GE/NNP
Nuclear/NNP
Energy/NNP
unit/NN
,/,
with/IN
1,600/CD
Bay-area/JJ
employees/NNS
,/,
had/VBD
only/JJ
minor/JJ
damage/NN
at/IN
its/PRP$
San/NNP
Jose/NNP
headquarters/NN
./.
Business/NN
was/VBD
n't/RB
disrupted/VBD
./.
GENERAL/NNP
MOTORS/NNP
CORP./NNP
,/,
Detroit/NNP
,/,
auto/NN
maker/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
123.6/CD
billion/CD
,/,
NYSE/NNP
,/,
sustained/VBD
about/RB
10/CD
injuries/NNS
to/TO
workers/NNS
and/CC
some/DT
ruptured/JJ
water/NN
mains/NNS
at/IN
its/PRP$
New/NNP
United/NNP
Motor/NNP
Manufacturing/NNP
Inc./NNP
facility/NN
in/IN
Fremont/NNP
,/,
a/DT
joint/JJ
venture/NN
with/IN
Toyota/NNP
Motor/NNP
Corp/NNP
./.
There/EX
was/VBD
limited/JJ
production/NN
of/IN
some/DT
models/NNS
yesterday/NN
,/,
but/CC
it/PRP
was/VBD
n't/RB
clear/JJ
when/WRB
the/DT
normal/JJ
750-car-a-day/JJ
pace/NN
will/MD
resume/VB
./.
Plant/NN
officials/NNS
are/VBP
still/RB
assessing/VBG
damage/NN
to/TO
parts/NNS
suppliers/NNS
and/CC
Port/NNP
of/IN
Oakland/NNP
facilities/NNS
that/WDT
handle/VBP
shipments/NNS
to/TO
the/DT
plant/NN
./.
GOLDEN/NNP
WEST/NNP
FINANCIAL/NNP
CORP./NNP
,/,
Oakland/NNP
,/,
savings/NNS
and/CC
loan/NN
,/,
annual/JJ
revenue/NN
of/IN
$/$
1.4/CD
billion/CD
,/,
NYSE/NNP
,/,
had/VBD
only/JJ
minor/JJ
damage/NN
to/TO
a/DT
few/JJ
branches/NNS
and/CC
no/DT
injured/JJ
employees/NNS
./.
HEWLETT-PACKARD/NNP
Co./NNP
,/,
Palo/NNP
Alto/NNP
,/,
personal/JJ
computer/NN
and/CC
electronic/JJ
equipment/NN
maker/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
9.8/CD
billion/CD
,/,
NYSE/NNP
,/,
said/VBD
there/EX
will/MD
be/VB
a/DT
``/``
minimal/JJ
suspension/NN
''/''
of/IN
manufacturing/NN
for/IN
an/DT
undefined/JJ
period/NN
./.
The/DT
computer/NN
system/NN
was/VBD
operating/VBG
,/,
so/IN
orders/NNS
could/MD
be/VB
taken/VBN
./.
The/DT
company/NN
has/VBZ
18,000/CD
employees/NNS
and/CC
more/JJR
than/IN
70/CD
buildings/NNS
in/IN
the/DT
Bay/NNP
area/NN
./.
One/CD
building/NN
in/IN
Palo/NNP
Alto/NNP
may/MD
be/VB
damaged/JJ
beyond/IN
repair/NN
./.
Others/NNS
had/VBD
lesser/JJR
damage/NN
and/CC
there/EX
were/VBD
no/DT
injuries/NNS
among/IN
workers/NNS
./.
Damage/NN
will/MD
be/VB
``/``
easily/RB
in/IN
the/DT
millions/NNS
,/,
''/''
the/DT
company/NN
said/VBD
./.
HEXCEL/NNP
Corp./NNP
,/,
Dublin/NNP
,/,
manufacturer/NN
of/IN
engineered/JJ
parts/NNS
,/,
annual/JJ
sales/NNS
of/IN
$/$
399/CD
million/CD
,/,
NYSE/NNP
,/,
had/VBD
little/JJ
damage/NN
beyond/IN
some/DT
phone/NN
trouble/NN
./.
HOMESTAKE/NNP
MINING/NNP
CO./NNP
,/,
San/NNP
Francisco/NNP
,/,
gold/NN
and/CC
general/JJ
miner/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
432.6/CD
million/CD
,/,
NYSE/NNP
,/,
said/VBD
its/PRP$
headquarters/NN
was/VBD
closed/JJ
yesterday/NN
because/IN
of/IN
power/NN
failures/NNS
and/CC
lack/NN
of/IN
water/NN
,/,
but/CC
that/IN
it/PRP
may/MD
reopen/VB
today/NN
./.
It/PRP
expects/VBZ
any/DT
impact/NN
on/IN
its/PRP$
business/NN
to/TO
be/VB
slight/JJ
./.
HOMESTEAD/NNP
FINANCIAL/NNP
CORP./NNP
,/,
Millbrae/NNP
,/,
financial/JJ
services/NNS
concern/NN
,/,
annual/JJ
revenue/NN
of/IN
$/$
562/CD
million/CD
,/,
OTC/NNP
,/,
said/VBD
three/CD
of/IN
its/PRP$
17/CD
Bay-area/JJ
branches/NNS
were/VBD
closed/JJ
yesterday/NN
./.
The/DT
company/NN
expects/VBZ
all/DT
branches/NNS
to/TO
reopen/VB
today/NN
./.
INMAC/NNP
CORP./NNP
,/,
Santa/NNP
Clara/NNP
,/,
maker/NN
of/IN
computer/NN
accessories/NNS
,/,
annual/JJ
sales/NNS
of/IN
$/$
250/CD
million/CD
,/,
OTC/NNP
,/,
said/VBD
telephones/NNS
were/VBD
out/RB
at/IN
its/PRP$
headquarters/NN
but/CC
service/NN
should/MD
be/VB
restored/VBN
by/IN
today/NN
./.
The/DT
company/NN
said/VBD
it/PRP
was/VBD
doing/VBG
a/DT
brisk/JJ
business/NN
in/IN
computer/NN
power-surge/NN
protectors/NNS
,/,
cables/NNS
and/CC
uninterruptable/JJ
power/NN
sources/NNS
./.
INTEL/NNP
Corp./NNP
,/,
Santa/NNP
Clara/NNP
,/,
semiconductor/NN
maker/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
2.87/CD
billion/CD
,/,
OTC/NNP
,/,
had/VBD
some/DT
damage/NN
and/CC
few/JJ
people/NNS
were/VBD
at/IN
work/NN
yesterday/NN
./.
INTERNATIONAL/NNP
BUSINESS/NNP
MACHINES/NNP
Corp/NNP
,/,
Armonk/NNP
,/,
N.Y./NNP
,/,
maker/NN
of/IN
business/NN
machines/NNS
,/,
NYSE/NNP
,/,
said/VBD
flooding/NN
caused/VBN
by/IN
broken/JJ
water/NN
pipes/NNS
closed/VBD
its/PRP$
San/NNP
Jose/NNP
plant/NN
,/,
which/WDT
makes/VBZ
high-end/JJ
data-storage/NN
devices/NNS
./.
The/DT
plant/NN
and/CC
its/PRP$
8,500/CD
employees/NNS
gradually/RB
will/MD
resume/VB
operations/NNS
over/IN
the/DT
next/JJ
several/JJ
days/NNS
,/,
the/DT
company/NN
said/VBD
./.
Also/RB
closed/JJ
yesterday/NN
were/VBD
the/DT
company/NN
's/POS
Santa/NNP
Teresa/NNP
software-development/NN
lab/NN
and/CC
the/DT
Almaden/NNP
research/NN
center/NN
./.
The/DT
concern/NN
's/POS
National/NNP
Service/NNP
Division/NNP
opened/VBD
a/DT
center/NN
for/IN
emergency/NN
service/NN
in/IN
Walnut/NNP
Creek/NNP
as/IN
part/NN
of/IN
its/PRP$
disaster-recovery/JJ
plan/NN
./.
KAISER/NNP
ALUMINUM/NNP
&/CC
CHEMICAL/NNP
,/,
Oakland/NNP
,/,
metal/NN
and/CC
chemical/NN
maker/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
2.22/CD
billion/CD
,/,
had/VBD
slight/JJ
structural/JJ
damage/NN
to/TO
its/PRP$
28-story/JJ
headquarters/NN
building/NN
and/CC
employees/NNS
stayed/VBD
home/RB
yesterday/NN
to/TO
allow/VB
crews/NNS
to/TO
clean/VB
up/RP
./.
LOCKHEED/NNP
CORP./NNP
,/,
Calabasas/NNP
,/,
aerospace/NN
and/CC
defense/NN
concern/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
10.59/CD
billion/CD
,/,
NYSE/NNP
,/,
said/VBD
its/PRP$
Lockheed/NNP
Missiles/NNP
&/CC
Space/NNP
division/NN
closed/VBD
its/PRP$
Santa/NNP
Cruz/NNP
test/NN
facility/NN
because/IN
of/IN
power/NN
outages/NNS
and/CC
landslides/NNS
./.
The/DT
closing/NN
,/,
affecting/VBG
266/CD
employees/NNS
,/,
will/MD
continue/VB
at/IN
least/JJS
until/IN
roads/NNS
are/VBP
cleared/VBN
./.
It/PRP
was/VBD
n't/RB
known/VBN
to/TO
what/WP
extent/NN
,/,
if/IN
any/DT
,/,
the/DT
facility/NN
was/VBD
damaged/VBN
./.
It/PRP
also/RB
was/VBD
n't/RB
known/VBN
what/WP
the/DT
impact/NN
will/MD
be/VB
on/IN
the/DT
division/NN
's/POS
work/NN
,/,
which/WDT
includes/VBZ
the/DT
Navy/NNP
's/POS
Trident/NNP
submarine-based/JJ
missile/NN
program/NN
and/CC
the/DT
Air/NNP
Force/NNP
's/POS
Strategic/NNP
Defense/NNP
Initiative/NNP
./.
The/DT
division/NN
had/VBD
only/RB
minor/JJ
damage/NN
at/IN
its/PRP$
Sunnyvale/NNP
headquarters/NN
and/CC
plant/NN
in/IN
Palo/NNP
Altos/NNP
,/,
and/CC
no/DT
delays/NNS
in/IN
deliveries/NNS
are/VBP
expected/VBN
./.
LONGS/NNP
DRUG/NNP
STORES/NNP
INC./NNP
,/,
Walnut/NNP
Creek/NNP
,/,
drugstore/NN
chain/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
1.9/CD
billion/CD
,/,
NYSE/NNP
,/,
had/VBD
only/RB
minor/JJ
damage/NN
and/CC
only/RB
four/CD
of/IN
its/PRP$
75/CD
Bay-area/JJ
stores/NNS
,/,
all/DT
in/IN
the/DT
Santa/NNP
Cruz/NNP
area/NN
,/,
were/VBD
closed/JJ
./.
All/DT
are/VBP
expected/VBN
to/TO
reopen/VB
soon/RB
./.
LSI/NNP
LOGIC/NNP
CORP./NNP
,/,
Milpitas/NNP
,/,
maker/NN
of/IN
customized/JJ
integrated/JJ
circuits/NNS
,/,
annual/JJ
sales/NNS
of/IN
$/$
550/CD
million/CD
,/,
NYSE/NNP
,/,
has/VBZ
halted/VBN
manufacturing/NN
at/IN
its/PRP$
three/CD
plants/NNS
in/IN
the/DT
area/NN
while/IN
they/PRP
are/VBP
inspected/VBN
for/IN
structural/JJ
damage/NN
./.
The/DT
company/NN
expects/VBZ
to/TO
resume/VB
full/JJ
operations/NNS
by/IN
today/NN
./.
R.H./NNP
MACY/NNP
&/CC
Co./NNP
,/,
New/NNP
York/NNP
,/,
retailer/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
7/CD
billion/CD
,/,
said/VBD
there/EX
was/VBD
minor/JJ
damage/NN
to/TO
its/PRP$
24/CD
Macy/NNP
stores/NNS
and/CC
nine/CD
I./NNP
Magnin/NNP

stores/NNS
in/IN
the/DT
Bay/NNP
area/NN
./.
MEASUREX/NNP
CORP./NNP
,/,
Cupertino/NNP
,/,
maker/NN
of/IN
computer/NN
integrated/JJ
manufacturing/NN
processes/NNS
,/,
annual/JJ
sales/NNS
of/IN
$/$
265/CD
million/CD
,/,
NYSE/NNP
,/,
had/VBD
only/RB
minor/JJ
damage/NN
but/CC
workers/NNS
spent/VBD
most/RBS|JJS
of/IN
yesterday/NN
cleaning/VBG
up/RP
./.
NATIONAL/NNP
SEMICONDUCTOR/NNP
CORP./NNP
,/,
Santa/NNP
Clara/NNP
,/,
semiconductor/NN
maker/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
1.65/CD
billion/CD
,/,
NYSE/NNP
,/,
said/VBD
it/PRP
had/VBD
no/DT
major/JJ
structural/JJ
damage/NN
at/IN
its/PRP$
30/CD
Bay-area/JJ
buildings/NNS
,/,
but/CC
two/CD
workers/NNS
were/VBD
injured/VBN
./.
Production/NN
resumed/VBD
yesterday/NN
./.
Piping/NN
in/IN
a/DT
waste-treatment/NN
plant/NN
needed/VBD
immediate/JJ
repairs/NNS
./.
NORDSTROM/NNP
INC./NNP
,/,
Seattle/NNP
,/,
retailer/NN
,/,
annual/JJ
sales/NNS
$/$
2.33/CD
billion/CD
,/,
OTC/NNP
,/,
five/CD
of/IN
this/DT
59-store/JJ
chain/NN
's/POS
nine/CD
stores/NNS
in/IN
the/DT
Bay/NNP
Area/NNP
were/VBD
closed/JJ
yesterday/NN
,/,
damage/NN
appears/VBZ
primarily/RB
cosmetic/JJ
,/,
hopes/VBZ
to/TO
reopen/VB
four/CD
of/IN
the/DT
stores/NNS
by/IN
today/NN
and/CC
the/DT
fifth/JJ
by/IN
Saturday/NNP
./.
ORACLE/NNP
SYSTEMS/NNP
CORP./NNP
,/,
Belmont/NNP
,/,
provider/NN
of/IN
computer/NN
programming/NN
and/CC
software/NN
services/NNS
,/,
annual/JJ
sales/NNS
$/$
584/CD
million/CD
,/,
four/CD
of/IN
12/CD
offices/NNS
and/CC
buildings/NNS
in/IN
the/DT
Belmont/NNP
and/CC
San/NNP
Mateo/NNP
areas/NNS
were/VBD
closed/JJ
,/,
95/CD
%/NN
of/IN
computer/NN
and/CC
telephone/NN
systems/NNS
are/VBP
operating/VBG
,/,
expects/VBZ
to/TO
be/VB
back/RB
to/TO
full/JJ
operation/NN
by/IN
the/DT
end/NN
of/IN
the/DT
week/NN
./.
PACIFIC/NNP
GAS/NNP
&/CC
ELECTRIC/NNP
CO./NNP
,/,
San/NNP
Francisco/NNP
,/,
electric/JJ
,/,
gas/NN
and/CC
water/NN
supplier/NN
,/,
annual/JJ
sales/NNS
$/$
7.6/CD
billion/CD
,/,
some/DT
minor/JJ
damage/NN
to/TO
headquarters/NN
,/,
undetermined/JJ
damage/NN
to/TO
four/CD
nearby/JJ
substations/NNS
,/,
severe/JJ
structural/JJ
damage/NN
to/TO
a/DT
major/JJ
power/NN
plant/NN
at/IN
Moss/NNP
Landing/NNP
,/,
extensive/JJ
damage/NN
to/TO
gas/NN
lines/NNS
and/CC
electric/JJ
lines/NNS
,/,
400,000/CD
residences/NNS
without/IN
electricity/NN
and/CC
69,000/CD
without/IN
gas/NN
,/,
can/MD
not/RB
reconnect/VB
electricity/NN
until/IN
it/PRP
is/VBZ
certain/JJ
there/EX
are/VBP
no/DT
gas/NN
leaks/NNS
,/,
no/DT
predictions/NNS
on/IN
when/WRB
this/DT
will/MD
happen/VB
./.
PACIFIC/NNP
TELESIS/NNP
GROUP/NNP
,/,
San/NNP
Francisco/NNP
,/,
telecommunications/NNS
holding/NN
company/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
9.5/CD
billion/CD
,/,
no/DT
damage/NN
to/TO
headquarters/NN
,/,
but/CC
no/DT
power/NN
,/,
the/DT
power/NN
failure/NN
has/VBZ
caused/VBN
a/DT
delay/NN
in/IN
the/DT
release/NN
of/IN
the/DT
company/NN
's/POS
earnings/NNS
report/NN
,/,
major/JJ
concern/NN
is/VBZ
subsidiaries/NNS
,/,
Pacific/NNP
Bell/NNP
and/CC
Pacific/NNP
Telesis/NNP
Cellular/NNP
,/,
both/DT
of/IN
which/WDT
sustained/VBD
damage/NN
to/TO
buildings/NNS
,/,
structural/JJ
damage/NN
to/TO
several/JJ
cellular/JJ
sites/NNS
in/IN
Santa/NNP
Cruz/NNP
,/,
volume/NN
of/IN
calls/NNS
on/IN
cellular/JJ
phones/NNS
10/CD
times/NNS
the/DT
usual/JJ
,/,
causing/VBG
a/DT
big/JJ
slowdown/NN
./.
PROCTER/NNP
&/CC
GAMBLE/NNP
CO./NNP
,/,
Cincinnati-based/JJ
company/NN
's/POS
Folgers/NNP
Coffee/NNP
plant/NN
in/IN
South/NNP
San/NNP
Francisco/NNP
was/VBD
closed/JJ
following/VBG
the/DT
earthquake/NN
,/,
no/DT
injuries/NNS
or/CC
major/JJ
damage/NN
,/,
other/JJ
plants/NNS
around/IN
country/NN
can/MD
make/VB
up/RP
for/IN
any/DT
lost/JJ
production/NN
./.
QUANTUM/NNP
CORP./NNP
,/,
Milpitas/NNP
,/,
manufactures/VBZ
rigid/JJ
disc/NN
drives/NNS
for/IN
small/JJ
business/NN
computers/NNS
,/,
word/NN
processors/NNS
,/,
annual/JJ
sales/NNS
$/$
120.8/CD
million/CD
,/,
OTC/NNP
,/,
open/JJ
for/IN
business/NN
,/,
minor/JJ
structural/JJ
damage/NN
./.
RAYCHEM/NNP
CORP./NNP
,/,
Menlo/NNP
Park/NNP
,/,
plastics/NNS
manufacturer/NN
,/,
annual/JJ
sales/NNS
$/$
1/CD
billion/CD
,/,
no/DT
major/JJ
damage/NN
and/CC
no/DT
production/NN
slowdown/NN
is/VBZ
anticipated/VBN
./.
ROSS/NNP
STORES/NNP
INC./NNP
,/,
Newark/NNP
,/,
discount/NN
apparel/NN
chain/NN
,/,
annual/JJ
sales/NNS
$/$
576/CD
million/CD
,/,
two/CD
of/IN
28/CD
stores/NNS
in/IN
Bay/NNP
Area/NNP
closed/JJ
,/,
both/DT
could/MD
open/VB
as/RB
early/RB
as/IN
today/NN
./.
SAFEWAY/NNP
STORES/NNP
INC./NNP
,/,
Oakland/NNP
,/,
retail/JJ
food/NN
chain/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
13.6/CD
billion/CD
,/,
some/DT
structural/JJ
damage/NN
to/TO
headquarters/NN
and/CC
no/DT
power/NN
;/:
major/JJ
problems/NNS
transporting/VBG
products/NNS
to/TO
those/DT
stores/NNS
that/WDT
remained/VBD
open/JJ
;/:
no/DT
numbers/NNS
on/IN
how/WRB
many/JJ
stores/NNS
closed/VBD
./.
CHARLES/NNP
SCHWAB/NNP
&/CC
CO./NNP
,/,
San/NNP
Francisco/NNP
,/,
discount/NN
brokerage/NN
firm/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
392/CD
million/CD
,/,
had/VBD
only/JJ
minor/JJ
damage/NN
to/TO
headquarters/NNS
building/NN
and/CC
was/VBD
up/RB
and/CC
running/VBG
for/IN
yesterday/NN
's/POS
market/NN
open/NN
./.
Firm/NN
will/NN
not/RB
,/,
however/RB
,/,
resume/VB
24-hour/JJ
service/NN
until/IN
power/NN
in/IN
city/NN
is/VBZ
restored/VBN
./.
Office/NN
closed/VBD
yesterday/NN
at/IN
4:30/CD
p.m./NN
EDT/NNP
./.
SEAGATE/NNP
TECHNOLOGY/NNP
,/,
Scotts/NNP
Valley/NNP
,/,
maker/NN
of/IN
hard/JJ
disk/NN
drives/NNS
for/IN
computers/NNS
,/,
annual/JJ
sales/NNS
of/IN
$/$
1.37/CD
billion/CD
,/,
OTC/NNP
,/,
closed/VBD
to/TO
assess/VB
what/WP
appeared/VBD
to/TO
be/VB
minor/JJ
damage/NN
to/TO
some/DT
of/IN
its/PRP$
20/CD
buildings/NNS
./.
SOUTHERN/NNP
PACIFIC/NNP
TRANSPORTATION/NNP
CO./NNP
,/,
San/NNP
Francisco/NNP
,/,
railroad/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
2.41/CD
billion/CD
,/,
had/VBD
only/RB
minor/JJ
damage/NN
to/TO
headquarters/NN
and/CC
tracks/NNS
,/,
and/CC
expects/VBZ
to/TO
be/VB
fully/RB
operational/JJ
tomorrow/NN
./.
St./NNP
Louis/NNP
Southwestern/NNP
Railway/NNP
Co./NNP
unit/NN
halted/VBD
all/DT
service/NN
Tuesday/NNP
night/NN
but/CC
has/VBZ
since/IN
restored/VBN
some/DT
freight/NN
lines/NNS
and/CC
limited/JJ
commuter/NN
service/NN
between/IN
San/NNP
Francisco/NNP
and/CC
San/NNP
Jose/NNP
./.
SUN/NNP
MICROSYSTEMS/NNP
INC./NNP
,/,
Mountain/NNP
View/NNP
,/,
maker/NN
of/IN
desktop/JJ
computers/NNS
,/,
annual/JJ
sales/NNS
$/$
1.77/CD
billion/CD
,/,
OTC/NNP
,/,
no/DT
injured/JJ
employees/NNS
and/CC
very/RB
little/JJ
damage/NN
to/TO
buildings/NNS
./.
Closed/VBN
yesterday/RB
due/JJ
to/TO
power/NN
difficulties/NNS
./.
TANDEM/NNP
COMPUTERS/NNP
INC./NNP
,/,
Cupertino/NNP
,/,
computer/NN
maker/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
1.6/CD
billion/CD
,/,
NYSE/NNP
,/,
said/VBD
it/PRP
had/VBD
no/DT
significant/JJ
damage/NN
and/CC
should/MD
be/VB
fully/RB
operational/JJ
within/IN
a/DT
week/NN
./.
Many/JJ
employees/NNS
stayed/VBD
home/RB
yesterday/NN
,/,
but/CC
customer/NN
service/NN
was/VBD
being/VBG
maintained/VBN
./.
TRANSAMERICA/NNP
CORP./NNP
,/,
San/NNP
Francisco/NNP
,/,
financial/JJ
services/NNS
and/CC
insurance/NN
company/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
7.9/CD
billion/CD
,/,
NYSE/NNP
,/,
said/VBD
its/PRP$
headquarters/NNS
,/,
the/DT
well-known/JJ
downtown/JJ
pyramid-shaped/JJ
building/NN
,/,
was/VBD
intact/JJ
but/CC
closed/JJ
yesterday/NN
./.
VARIAN/NNP
ASSOCIATES/NNP
INC./NNP
,/,
Palo/NNP
Alto/NNP
,/,
instrumentation/NN
and/CC
semiconductor/NN
equipment/NN
company/NN
,/,
annual/JJ
sales/NNS
of/IN
$/$
1.3/CD
billion/CD
,/,
had/VBD
only/RB
minor/JJ
damage/NN
and/CC
no/DT
slowdowns/NNS
were/VBD
anticipated/VBN
./.
VLSI/NNP
TECHNOLOGY/NNP
INC./NNP
,/,
San/NNP
Jose/NNP
,/,
maker/NN
of/IN
semiconductor/NN
products/NNS
,/,
annual/JJ
sales/NNS
$/$
171.9/CD
million/CD
,/,
OTC/NNP
,/,
minimal/JJ
damage/NN
to/TO
facilities/NNS
,/,
no/DT
injuries/NNS
,/,
expected/VBN
operations/NNS
to/TO
return/VB
to/TO
normal/JJ
late/RB
yesterday/NN
./.
WATKINS-JOHNSON/NNP
CO./NNP
,/,
defense-oriented/JJ
electronics/NN
manufacturer/NN
,/,
annual/JJ
sales/NNS
$/$
292/CD
million/CD
,/,
NYSE/NNP
,/,
minor/JJ
damage/NN
to/TO
headquarters/NN
and/CC
plant/NN
in/IN
Palo/NNP
Alto/NNP
,/,
no/DT
damage/NN
to/TO
San/NNP
Jose/NNP
plant/NN
,/,
``/``
still/RB
assessing/VBG
''/''
damage/NN
at/IN
Scotts/NNP
Valley/NNP
plant/NN
,/,
where/WRB
main/JJ
product/NN
is/VBZ
furnaces/NNS
for/IN
semiconductor/NN
production/NN
./.
WELLS/NNP
FARGO/NNP
&/CC
CO./NNP
,/,
San/NNP
Francisco/NNP
,/,
bank/NN
holding/NN
company/NN
,/,
annual/JJ
revenue/NN
$/$
4.9/CD
billion/CD
,/,
NYSE/NNP
,/,
minor/JJ
damage/NN
at/IN
headquarters/NN
,/,
12/CD
branches/NNS
out/IN
of/IN
170/CD
in/IN
Northern/NNP
California/NNP
sustained/VBD
structural/JJ
damage/NN
that/WDT
will/MD
preclude/VB
them/PRP
from/IN
opening/VBG
in/IN
the/DT
near/JJ
future/NN
,/,
45/CD
locations/NNS
with/IN
at/IN
least/JJS
one/CD
automatic/JJ
teller/NN
machine/NN
inoperable/JJ
,/,
central/JJ
computer/NN
systems/NNS
are/VBP
operating/VBG
,/,
no/DT
injuries/NNS
./.
WYSE/NNP
TECHNOLOGY/NNP
INC./NNP
,/,
San/NNP
Jose/NNP
,/,
maker/NN
of/IN
video/JJ
display/NN
terminals/NNS
and/CC
workstations/NNS
and/CC
IBM\/PC/NNP
compatible/JJ
computers/NNS
,/,
annual/JJ
sales/NNS
of/IN
$/$
452/CD
million/CD
,/,
slight/JJ
structural/JJ
damage/NN
at/IN
headquarters/NN
,/,
no/DT
injuries/NNS
,/,
expects/VBZ
to/TO
be/VB
back/RB
to/TO
full/JJ
operation/NN
today/NN
./.
3COM/NNP
CORP./NNP
,/,
Santa/NNP
Clara/NNP
,/,
maker/NN
of/IN
computer/NN
communications/NNS
systems/NNS
,/,
annual/JJ
sales/NNS
of/IN
$/$
386/CD
million/CD
,/,
OTC/NNP
,/,
slight/JJ
structural/JJ
damage/NN
to/TO
headquarters/NNS
,/,
communications/NNS
systems/NNS
already/RB
fully/RB
operational/JJ
./.
Could/MD
the/DT
collapse/NN
of/IN
I-880/NNP
have/VB
been/VBN
prevented/VBN
?/.
That/DT
was/VBD
the/DT
question/NN
structural/JJ
engineers/NNS
and/CC
California/NNP
transportation/NN
officials/NNS
were/VBD
asking/VBG
themselves/PRP
yesterday/NN
as/IN
rescue/NN
workers/NNS
began/VBD
the/DT
gruesome/JJ
task/NN
of/IN
trying/VBG
to/TO
extract/VB
as/RB
many/JJ
as/IN
250/CD
victims/NNS
from/IN
beneath/IN
the/DT
concrete/JJ
slabs/NNS
of/IN
the/DT
double-deck/JJ
Nimitz/NNP
Freeway/NNP
in/IN
Oakland/NNP
that/WDT
caved/VBD
in/RP
during/IN
Tuesday/NNP
's/POS
temblor/NN
./.
After/IN
touring/VBG
the/DT
area/NN
,/,
California/NNP
Gov./NNP
George/NNP
Deukmejian/NNP
late/RB
yesterday/NN
called/VBD
for/IN
an/DT
inquiry/NN
into/IN
the/DT
freeway/NN
's/POS
collapse/NN
,/,
blaming/VBG
the/DT
disaster/NN
on/IN
substandard/JJ
construction/NN
,/,
the/DT
Associated/NNP
Press/NNP
reported/VBD
./.
The/DT
impact/NN
of/IN
the/DT
destruction/NN
of/IN
this/DT
2.5-mile/JJ
stretch/NN
of/IN
highway/NN
was/VBD
tragically/RB
measured/VBN
in/IN
lost/VBN
lives/NNS
./.
But/CC
there/EX
are/VBP
other/JJ
long-term/JJ
effects/NNS
that/WDT
raise/VBP
serious/JJ
questions/NNS
about/IN
the/DT
ability/NN
of/IN
California/NNP
's/POS
infrastructure/NN
to/TO
withstand/VB
a/DT
major/JJ
temblor/NN
./.
It/PRP
could/MD
easily/RB
be/VB
two/CD
years/NNS
before/IN
the/DT
well-traveled/JJ
artery/NN
that/WDT
helps/VBZ
connect/VB
Oakland/NNP
with/IN
San/NNP
Francisco/NNP
is/VBZ
reopened/VBN
,/,
and/CC
the/DT
cost/NN
to/TO
build/VB
a/DT
new/JJ
stretch/NN
of/IN
highway/NN
could/MD
soar/VB
to/TO
more/JJR
than/IN
$/$
250/CD
million/CD
,/,
said/VBD
Charles/NNP
J./NNP
O'Connell/NNP
,/,
deputy/NN
district/NN
director/NN
in/IN
Los/NNP
Angeles/NNP
of/IN
the/DT
California/NNP
Department/NNP
of/IN
Transportation/NNP
,/,
nicknamed/VBN
Caltrans/NNP
./.
Caltrans/NNP
in/IN
Sacramento/NNP
said/VBD
total/JJ
damage/NN
from/IN
the/DT
collapsed/JJ
highway/NN
is/VBZ
estimated/VBN
at/IN
around/IN
$/$
500/CD
million/CD
./.
The/DT
aftershocks/NNS
of/IN
the/DT
highway/NN
tragedy/NN
are/VBP
reverberating/VBG
in/IN
Los/NNP
Angeles/NNP
as/IN
well/RB
,/,
as/IN
local/JJ
politicians/NNS
spoke/VBD
yesterday/NN
against/IN
plans/NNS
to/TO
bring/VB
double-decking/NN
to/TO
Los/NNP
Angeles/NNP
freeways/NNS
by/IN
1994/CD
./.
Caltrans/NNP
plans/NNS
to/TO
add/VB
a/DT
second/JJ
deck/NN
for/IN
buses/NNS
and/CC
car/NN
pools/NNS
above/IN
the/DT
median/NN
of/IN
a/DT
2.5-mile/JJ
stretch/NN
of/IN
the/DT
Harbor/NNP
Freeway/NNP
just/RB
south/RB
of/IN
Los/NNP
Angeles/NNP
,/,
near/IN
the/DT
Memorial/NNP
Coliseum/NNP
./.
Los/NNP
Angeles/NNP
County/NNP
Supervisor/NNP
Kenneth/NNP
Hahn/NNP
yesterday/NN
vowed/VBD
to/TO
fight/VB
the/DT
introduction/NN
of/IN
double-decking/NN
in/IN
the/DT
area/NN
./.
Caltrans/NNS
abandoned/VBD
double-decking/NN
in/IN
the/DT
early/JJ
1970s/NNS
,/,
following/VBG
the/DT
1971/CD
Sylmar/NNP
earthquake/NN
that/WDT
destroyed/VBD
freeway/NN
sections/NNS
just/RB
north/RB
of/IN
Los/NNP
Angeles/NNP
,/,
Mr./NNP
O'Connell/NNP
explained/VBD
./.
That/DT
temblor/NN
measured/VBD
6.1/CD
on/IN
the/DT
Richter/NNP
scale/NN
;/:
Tuesday/NNP
's/POS
was/VBD
So/RB
why/WRB
even/RB
consider/VB
stacking/VBG
freeways/NNS
now/RB
?/.
``/``
We/PRP
've/VBP
run/VBN
out/RP
of/IN
places/NNS
to/TO
build/VB
freeways/NNS
in/IN
L.A./NNP
,/,
and/CC
the/DT
only/JJ
place/NN
to/TO
go/VB
is/VBZ
up/RB
,/,
''/''
Mr./NNP
O'Connell/NNP
said/VBD
,/,
although/IN
he/PRP
acknowledges/VBZ
there/EX
are/VBP
many/JJ
obstacles/NNS
,/,
including/VBG
cost/NN
./.
But/CC
as/IN
for/IN
safety/NN
,/,
he/PRP
says/VBZ
double-deck/JJ
freeways/NNS
built/VBN
today/NN
with/IN
the/DT
heavily/RB
reinforced/VBN
concrete/JJ
and/CC
thicker/JJR
columns/NNS
required/VBN
after/IN
the/DT
Sylmar/NNP
quake/NN
should/MD
withstand/VB
a/DT
calamitous/JJ
temblor/NN
of/IN
7.5/CD
to/TO
8/CD
on/IN
the/DT
Richter/NNP
scale/NN
./.
Reasons/NNS
for/IN
the/DT
collapse/NN
of/IN
the/DT
Nimitz/NNP
Freeway/NNP
were/VBD
sketchy/JJ
yesterday/NN
./.
But/CC
most/RBS
structural/JJ
engineers/NNS
attributed/VBD
the/DT
destruction/NN
to/TO
improper/JJ
reinforcement/NN
of/IN
the/DT
columns/NNS
that/WDT
supported/VBD
the/DT
decks/NNS
,/,
and/CC
the/DT
fact/NN
that/IN
the/DT
ground/NN
beneath/IN
the/DT
highway/NN
is/VBZ
largely/RB
landfill/NN
and/CC
can/MD
become/VB
unstable/JJ
,/,
or/CC
``/``
liquefy/VB
,/,
''/''
in/IN
a/DT
major/JJ
quake/NN
./.
The/DT
two-story/JJ
roadway/NN
,/,
designed/VBN
in/IN
the/DT
mid-1940s/NNS
and/CC
completed/VBN
in/IN
1957/CD
,/,
was/VBD
supported/VBN
by/IN
columns/NNS
that/WDT
apparently/RB
lacked/VBD
the/DT
kind/NN
of/IN
steel/NN
reinforcement/NN
used/VBN
in/IN
highways/NNS
today/NN
./.
While/IN
the/DT
pillars/NNS
did/VBD
have/VB
long/JJ
metal/NN
bars/NNS
running/VBG
vertically/RB
through/IN
them/PRP
for/IN
reinforcement/NN
,/,
they/PRP
apparently/RB
lacked/VBD
an/DT
adequate/JJ
number/NN
of/IN
metal/NN
``/``
ties/NNS
''/''
that/WDT
run/VBP
horizontally/RB
through/IN
the/DT
column/NN
,/,
said/VBD
Leo/NNP
Parker/NNP
,/,
a/DT
structural/JJ
engineer/NN
in/IN
Los/NNP
Angeles/NNP
./.
Caltrans/NNP
today/NN
uses/VBZ
a/DT
variation/NN
of/IN
the/DT
design/NN
Mr./NNP
Parker/NNP
describes/VBZ
,/,
with/IN
spiraling/JJ
steel/NN
rods/NNS
inside/RB
./.
But/CC
in/IN
the/DT
case/NN
of/IN
the/DT
Nimitz/NNP
Freeway/NNP
,/,
the/DT
lack/NN
of/IN
such/JJ
support/NN
caused/VBD
the/DT
core/NN
of/IN
the/DT
columns/NNS
to/TO
crumble/VB
and/CC
buckle/VB
under/IN
the/DT
weight/NN
of/IN
the/DT
second/JJ
deck/NN
,/,
crushing/VBG
motorists/NNS
who/WP
were/VBD
lined/VBN
up/RP
in/IN
bumper-to-bumper/JJ
rush-hour/JJ
traffic/NN
on/IN
the/DT
lower/JJR
deck/NN
nearly/RB
15/CD
feet/NNS
below/RB
./.
Officials/NNS
of/IN
the/DT
state/NN
agency/NN
did/VBD
n't/RB
have/VB
any/DT
immediate/JJ
explanation/NN
why/WRB
the/DT
reinforcement/NN
did/VBD
n't/RB
hold/VB
up/RP
./.
Caltrans/NNP
reinforced/VBD
the/DT
highway/NN
in/IN
1977/CD
as/IN
part/NN
of/IN
a/DT
$/$
55/CD
million/CD
statewide/JJ
project/NN
,/,
using/VBG
steel/NN
cables/NNS
to/TO
tie/VB
the/DT
decks/NNS
of/IN
the/DT
freeway/NN
to/TO
the/DT
columns/NNS
and/CC
prevent/VB
the/DT
structure/NN
from/IN
swaying/VBG
in/IN
a/DT
quake/NN
./.
Caltrans/NNP
spokesman/NN
Jim/NNP
Drago/NNP
in/IN
Sacramento/NNP
declined/VBD
to/TO
identify/VB
the/DT
engineering/NN
firm/NN
that/WDT
did/VBD
the/DT
reinforcement/NN
work/NN
./.
Liability/NN
in/IN
the/DT
bridge/NN
and/CC
road/NN
collapses/NNS
will/MD
revolve/VB
around/IN
whether/IN
government/NN
took/VBD
``/``
reasonable/JJ
care/NN
''/''
to/TO
build/VB
and/CC
maintain/VB
the/DT
structures/NNS
,/,
says/VBZ
John/NNP
Messina/NNP
,/,
a/DT
Tacoma/NNP
,/,
Wash./NNP
,/,
personal-injury/JJ
attorney/NN
who/WP
specializes/VBZ
in/IN
highway/NN
design/NN
and/CC
maintenance/NN
cases/NNS
./.
The/DT
firm/NN
brought/VBD
in/RP
to/TO
strengthen/VB
the/DT
structure/NN
could/MD
be/VB
liable/JJ
as/RB
well/RB
./.
The/DT
results/NNS
of/IN
the/DT
quake/NN
certainly/RB
raise/VBP
questions/NNS
about/IN
whether/IN
reasonable/JJ
care/NN
was/VBD
taken/VBN
,/,
Mr./NNP
Messina/NNP
says/VBZ
./.
Given/VBN
the/DT
seismic/JJ
history/NN
of/IN
the/DT
Bay/NNP
Area/NNP
,/,
``/``
it/PRP
seems/VBZ
to/TO
me/PRP
that/IN
a/DT
6.9/CD
earthquake/NN
is/VBZ
a/DT
foreseeable/JJ
event/NN
./.
''/''
Caltrans/NNP
'/POS
Mr./NNP
Drago/NNP
defended/VBD
the/DT
agency/NN
's/POS
work/NN
on/IN
the/DT
Nimitz/NNP
Freeway/NNP
./.
``/``
The/DT
work/NN
was/VBD
done/VBN
properly/RB
,/,
''/''
he/PRP
said/VBD
./.
``/``
Basically/RB
,/,
we/PRP
had/VBD
a/DT
severe/JJ
earthquake/NN
of/IN
significant/JJ
duration/NN
and/CC
it/PRP
was/VBD
just/RB
something/NN
the/DT
structure/NN
could/MD
n't/RB
withstand/VB
./.
''/''
Ironically/RB
,/,
Caltrans/NNP
this/DT
year/NN
began/VBD
working/VBG
on/IN
a/DT
second/JJ
round/NN
of/IN
seismic/JJ
reinforcements/NNS
of/IN
freeways/NNS
around/IN
the/DT
state/NN
,/,
this/DT
time/NN
wrapping/VBG
freeway/NN
columns/NNS
in/IN
``/``
steel/NN
blankets/NNS
''/''
to/TO
reinforce/VB
them/PRP
./.
But/CC
only/RB
bridges/NNS
supported/VBN
with/IN
single/JJ
rows/NNS
of/IN
columns/NNS
were/VBD
top/JJ
priority/NN
,/,
and/CC
the/DT
Nimitz/NNP
Freeway/NNP
,/,
supported/VBN
by/IN
double/JJ
rows/NNS
,/,
was/VBD
left/VBN
out/RP
,/,
Mr./NNP
Drago/NNP
explained/VBD
./.
``/``
The/DT
reason/NN
is/VBZ
that/IN
the/DT
technology/NN
is/VBZ
such/JJ
that/IN
we/PRP
're/VBP
not/RB
able/JJ
to/TO
retrofit/VB
multi-column/JJ
structures/NNS
,/,
''/''
he/PRP
said/VBD
./.
Charles/NNP
McCoy/NNP
in/IN
San/NNP
Francisco/NNP
and/CC
John/NNP
R./NNP
Emshwiller/NNP
in/IN
Los/NNP
Angeles/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Lionel/NNP
Corp./NNP
's/POS
board/NN
unanimously/RB
rejected/VBD
a/DT
tender/NN
offer/NN
of/IN
$/$
8/CD
a/DT
share/NN
,/,
or/CC
$/$
95.4/CD
million/CD
,/,
for/IN
as/RB
much/JJ
as/IN
90/CD
%/NN
of/IN
Lionel/NNP
by/IN
a/DT
group/NN
with/IN
a/DT
9.9/CD
%/NN
stake/NN
in/IN
the/DT
toy/NN
retailer/NN
./.
Lionel/NNP
also/RB
urged/VBD
holders/NNS
of/IN
its/PRP$
stock/NN
and/CC
debt/NN
not/RB
to/TO
tender/VB
their/PRP$
securities/NNS
,/,
saying/VBG
it/PRP
wants/VBZ
to/TO
remain/VB
independent/JJ
to/TO
pursue/VB
its/PRP$
business/NN
strategy/NN
./.
Lionel/NNP
also/RB
said/VBD
the/DT
offer/NN
by/IN
Robert/NNP
I./NN
Toussie/NNP
Limited/NNP
Partnership/NNP
is/VBZ
inadequate/JJ
,/,
and/CC
full/JJ
of/IN
conditions/NNS
that/WDT
leave/VB
it/PRP
``/``
subject/NN
to/TO
substantial/JJ
uncertainty/NN
./.
''/''
In/IN
addition/NN
,/,
Lionel/NNP
began/VBD
a/DT
lawsuit/NN
in/IN
federal/JJ
District/NNP
Court/NNP
in/IN
New/NNP
York/NNP
seeking/VBG
to/TO
enjoin/VB
the/DT
offer/NN
,/,
alleging/VBG
,/,
among/IN
other/JJ
things/NNS
,/,
violations/NNS
of/IN
federal/JJ
securities/NNS
law/NN
and/CC
fraudulent/JJ
manipulation/NN
of/IN
the/DT
market/NN
for/IN
Lionel/NNP
's/POS
securities/NNS
./.
Robert/NNP
I./NN
Toussie/NNP
,/,
general/JJ
partner/NN
of/IN
the/DT
investment/NN
group/NN
,/,
said/VBD
the/DT
Lionel/NNP
response/NN
reflected/VBD
management/NN
's/POS
entrenched/VBN
position/NN
,/,
saying/VBG
officials/NNS
had/VBD
failed/VBN
to/TO
come/VB
up/IN
with/IN
a/DT
better/JJR
alternative/NN
to/TO
his/PRP$
group/NN
's/POS
offer/NN
./.
Mr./NNP
Toussie/NNP
said/VBD
he/PRP
would/MD
respond/VB
to/TO
Lionel/NNP
's/POS
suit/NN
after/IN
his/PRP$
lawyers/NNS
review/VB
it/PRP
./.
Efforts/NNS
by/IN
a/DT
federal/JJ
mediator/NN
to/TO
reignite/VB
talks/NNS
between/IN
Boeing/NNP
Co./NNP
and/CC
the/DT
Machinists/NNPS
union/NN
apparently/RB
failed/VBD
,/,
and/CC
no/DT
further/JJ
meetings/NNS
are/VBP
scheduled/VBN
./.
Company/NN
officials/NNS
and/CC
union/NN
representatives/NNS
did/VBD
n't/RB
meet/VB
face/NN
to/TO
face/VB
,/,
but/CC
the/DT
mediator/NN
shuttled/VBD
between/IN
the/DT
two/CD
groups/NNS
./.
In/IN
a/DT
statement/NN
issued/VBN
after/IN
the/DT
meeting/NN
,/,
the/DT
aerospace/JJ
giant/NN
said/VBD
it/PRP
wo/MD
n't/RB
increase/VB
its/PRP$
offer/NN
although/IN
adjustments/NNS
within/IN
the/DT
proposed/JJ
pay-and-benefit/JJ
mix/NN
are/VBP
possible/JJ
./.
Machinists/NNS|NNPS
already/RB
have/VBP
rejected/VBN
a/DT
proposal/NN
that/WDT
called/VBD
for/IN
a/DT
4/CD
%/NN
pay/NN
increase/NN
and/CC
8/CD
%/NN
bonus/NN
in/IN
the/DT
first/JJ
year/NN
./.
In/IN
the/DT
second/JJ
year/NN
,/,
workers/NNS
would/MD
receive/VB
a/DT
3/CD
%/NN
wage/NN
boost/NN
and/CC
a/DT
3/CD
%/NN
bonus/NN
,/,
followed/VBN
by/IN
a/DT
3/CD
%/NN
increase/NN
without/IN
a/DT
bonus/NN
in/IN
the/DT
third/JJ
year/NN
./.
``/``
The/DT
company/NN
will/MD
not/RB
budge/VB
on/IN
anything/NN
,/,
''/''
said/VBD
a/DT
spokesman/NN
for/IN
the/DT
union/NN
./.
As/IN
the/DT
strike/NN
enters/VBZ
its/PRP$
15th/JJ
day/NN
today/NN
,/,
some/DT
members/NNS
are/VBP
getting/VBG
nervous/JJ
,/,
the/DT
spokesman/NN
conceded/VBD
,/,
but/CC
the/DT
majority/NN
of/IN
the/DT
55,000/CD
Machinists/NNPS
are/VBP
prepared/VBN
to/TO
``/``
wait/VB
it/PRP
out/RP
as/RB
long/RB
as/IN
it/PRP
takes/VBZ
./.
''/''
United/NNP
Merchants/NNP
&/CC
Manufacturers/NNP
Inc./NNP
said/VBD
its/PRP$
president/NN
,/,
Uzi/NNP
Ruskin/NNP
,/,
withdrew/VBD
his/PRP$
proposal/NN
to/TO
acquire/VB
control/NN
of/IN
the/DT
New/NNP
York/NNP
textile/JJ
and/CC
clothing/NN
company/NN
./.
Last/JJ
month/NN
,/,
Mr./NNP
Ruskin/NNP
proposed/VBD
,/,
among/IN
other/JJ
things/NNS
,/,
to/TO
buy/VB
3.5/CD
million/CD
shares/NNS
,/,
or/CC
38/CD
%/NN
,/,
for/IN
$/$
4/CD
apiece/RB
./.
Coupled/VBN
with/IN
his/PRP$
current/JJ
1.2/CD
million/CD
shares/NNS
and/CC
4/CD
%/NN
held/VBN
by/IN
an/DT
associate/NN
,/,
the/DT
stake/NN
would/MD
have/VB
given/VBN
him/PRP
control/NN
of/IN
55/CD
%/NN
of/IN
the/DT
concern/NN
./.
In/IN
a/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
filing/NN
,/,
Mr./NNP
Ruskin/NNP
had/VBD
said/VBN
that/IN
holders/NNS
of/IN
the/DT
other/JJ
45/CD
%/NN
of/IN
United/NNP
Merchants/NNP
would/MD
receive/VB
one-half/JJ
share/NN
of/IN
a/DT
new/JJ
preferred/JJ
stock/NN
for/IN
each/DT
of/IN
their/PRP$
shares/NNS
./.
A/DT
special/JJ
committee/NN
of/IN
United/NNP
Merchants/NNP
directors/NNS
said/VBD
that/IN
in/IN
view/NN
of/IN
uncertainties/NNS
regarding/VBG
various/JJ
legal/JJ
and/CC
financial/JJ
considerations/NNS
,/,
it/PRP
could/MD
n't/RB
recommend/VB
the/DT
plan/NN
to/TO
the/DT
full/JJ
board/NN
./.
The/DT
company/NN
is/VBZ
exploring/VBG
,/,
with/IN
a/DT
major/JJ
financial/JJ
institution/NN
,/,
the/DT
development/NN
of/IN
a/DT
plan/NN
to/TO
boost/VB
the/DT
value/NN
of/IN
the/DT
company/NN
for/IN
its/PRP$
holders/NNS
,/,
Mr./NNP
Ruskin/NNP
said/VBD
./.
In/IN
a/DT
separate/JJ
SEC/NNP
filing/NN
,/,
Albert/NNP
Safer/NNP
,/,
who/WP
holds/VBZ
6.46/CD
%/NN
of/IN
United/NNP
Merchants/NNP
,/,
said/VBD
he/PRP
retained/VBD
investment/NN
bank/NN
Lazard/NNP
Freres/NNP
&/CC
Co./NNP
for/IN
advice/NN
as/IN
he/PRP
evaluates/VBZ
the/DT
possibility/NN
of/IN
making/VBG
a/DT
bid/NN
for/IN
the/DT
textile/JJ
maker/NN
./.
On/IN
Friday/NNP
,/,
Mr./NNP
Safer/NNP
,/,
a/DT
Newark/NNP
,/,
N.J./NNP
,/,
textile/JJ
businessman/NN
,/,
signed/VBD
a/DT
confidentiality/NN
agreement/NN
under/IN
which/WDT
United/NNP
Merchants/NNP
would/MD
provide/VB
him/PRP
with/IN
nonpublic/JJ
information/NN
./.
The/DT
White/NNP
House/NNP
is/VBZ
making/VBG
sure/RB
nobody/NN
will/MD
accuse/VB
it/PRP
of/IN
taking/VBG
this/DT
crisis/NN
lightly/RB
./.
In/IN
the/DT
aftermath/NN
of/IN
the/DT
California/NNP
earthquake/NN
,/,
President/NNP
Bush/NNP
and/CC
his/PRP$
aides/NNS
flew/VBD
into/IN
a/DT
whirlwind/NN
of/IN
earthquake-related/JJ
activity/NN
yesterday/NN
morning/NN
./.
Some/DT
of/IN
it/PRP
was/VBD
necessary/JJ
to/TO
get/VB
federal/JJ
help/NN
flowing/VBG
to/TO
victims/NNS
,/,
but/CC
some/DT
seemed/VBD
designed/VBN
mostly/RB
to/TO
project/VB
an/DT
image/NN
of/IN
a/DT
White/NNP
House/NNP
in/IN
action/NN
./.
Mr./NNP
Bush/NNP
and/CC
his/PRP$
aides/NNS
were/VBD
accused/VBN
of/IN
responding/VBG
too/RB
slowly/RB
after/IN
the/DT
Exxon/NNP
Valdez/NNP
oil/NN
tanker/NN
split/VBD
open/RB
in/IN
Alaskan/JJ
waters/NNS
and/CC
Hurricane/NNP
Hugo/NNP
struck/VBD
the/DT
Carolina/NNP
coast/NN
,/,
and/CC
they/PRP
clearly/RB
do/VBP
n't/RB
want/VB
a/DT
repeat/NN
of/IN
those/DT
charges/NNS
now/RB
./.
So/IN
the/DT
White/NNP
House/NNP
announced/VBD
that/IN
Mr./NNP
Bush/NNP
got/VBD
his/PRP$
first/JJ
earthquake/NN
briefing/NN
of/IN
the/DT
day/NN
at/IN
6:30/CD
a.m./NN
from/IN
chief/NN
of/IN
staff/NN
John/NNP
Sununu/NNP
./.
By/IN
noon/NN
,/,
Mr./NNP
Bush/NNP
had/VBD
taken/VBN
two/CD
phone/NN
calls/NNS
from/IN
Vice/NNP
President/NNP
Dan/NNP
Quayle/NNP
,/,
who/WP
was/VBD
in/IN
California/NNP
;/:
made/VBN
a/DT
televised/VBN
statement/NN
of/IN
concern/NN
;/:
signed/VBN
a/DT
disaster/NN
proclamation/NN
;/:
received/VBN
a/DT
written/JJ
report/NN
from/IN
the/DT
Federal/NNP
Emergency/NNP
Management/NNP
Agency/NNP
;/:
and/CC
visited/VBN
FEMA/NNP
headquarters/NN
./.
Mr./NNP
Bush/NNP
himself/PRP
essentially/RB
acknowledged/VBD
that/IN
he/PRP
and/CC
his/PRP$
aides/NNS
were/VBD
trying/VBG
to/TO
head/VB
off/RP
criticism/NN
./.
On/IN
his/PRP$
FEMA/NNP
visit/NN
,/,
Mr./NNP
Bush/NNP
said/VBD
that/IN
he/PRP
hoped/VBD
there/EX
would/MD
be/VB
``/``
less/JJR
carping/NN
''/''
about/IN
the/DT
emergency/NN
office/NN
's/POS
performance/NN
this/DT
time/NN
,/,
adding/VBG
that/IN
the/DT
agency/NN
``/``
took/VBD
a/DT
hit/NN
''/''
for/IN
its/PRP$
reaction/NN
to/TO
Hurricane/NNP
Hugo/NNP
./.
The/DT
White/NNP
House/NNP
already/RB
is/VBZ
talking/VBG
of/IN
Mr./NNP
Bush/NNP
visiting/VBG
the/DT
California/NNP
earthquake/NN
site/NN
this/DT
weekend/NN
./.
He/PRP
visited/VBD
the/DT
Hugo/NNP
devastation/NN
but/CC
not/RB
until/IN
after/IN
local/JJ
leaders/NNS
urged/VBD
him/PRP
to/TO
do/VB
so/RB
./.
Beazer/NNP
PLC/NNP
,/,
a/DT
major/JJ
British/JJ
building/NN
materials/NNS
and/CC
construction/NN
concern/NN
,/,
reported/VBD
a/DT
24/CD
%/NN
jump/NN
in/IN
pretax/JJ
profit/NN
for/IN
its/PRP$
latest/JJS
financial/JJ
year/NN
,/,
helped/VBN
largely/RB
by/IN
contributions/NNS
from/IN
its/PRP$
U.S./NNP
unit/NN
,/,
Koppers/NNP
Co/NNP
./.
Pretax/JJ
profit/NN
for/IN
the/DT
year/NN
to/TO
June/NNP
30/CD
rose/VBD
to/TO
#/#
142.5/CD
million/CD
$/$
224.5/CD
million/CD
#/#
114.7/CD
million/CD
$/$
180.7/CD
million/CD
analysts/NNS
'/POS
expectations/NNS
./.
Profit/NN
after/IN
taxes/NNS
and/CC
minority/NN
interests/NNS
but/CC
before/IN
extraordinary/JJ
items/NNS
increased/VBD
22/CD
%/NN
to/TO
#/#
92.6/CD
million/CD
from/IN
#/#
75.6/CD
million/CD
a/DT
year/NN
earlier/RBR
,/,
while/IN
fully/RB
diluted/VBN|JJ
earnings/NNS
per/IN
share/NN
rose/VBD
to/TO
29.90/CD
pence/NNS
47/CD
cents/NNS
24.68/CD
pence/NNS
39/CD
cents/NNS
The/DT
lethal/JJ
shudders/NNS
that/WDT
wracked/VBD
the/DT
San/NNP
Francisco/NNP
Bay/NNP
Area/NNP
--/:
rated/VBN
a/DT
6.9/CD
on/IN
the/DT
Richter/JJR
scale/NN
--/:
did/VBD
n't/RB
match/VB
the/DT
great/JJ
earthquake/NN
of/IN
1906/CD
,/,
rated/VBN
at/IN
8.25/CD
./.
The/DT
difference/NN
of/IN
just/RB
1.35/CD
points/NNS
on/IN
the/DT
scale/NN
,/,
designed/VBN
by/IN
Charles/NNP
Richter/NNP
of/IN
CalTech/NNP
in/IN
the/DT
1930s/NNS
,/,
means/VBZ
the/DT
older/JJR
quake/NN
was/VBD
``/``
10/CD
to/TO
20/CD
times/NNS
stronger/JJR
,/,
''/''
says/VBZ
Lane/NNP
Johnson/NNP
,/,
director/NN
of/IN
the/DT
University/NNP
of/IN
California/NNP
Berkeley/NNP
Seismographic/NNP
Station/NNP
./.
The/DT
ground/NN
ruptured/VBD
along/IN
a/DT
20-to-30-mile/JJ
stretch/NN
of/IN
the/DT
San/NNP
Andreas/NNP
Fault/NNP
on/IN
Tuesday/NNP
,/,
Mr./NNP
Johnson/NNP
added/VBD
./.
In/IN
1906/CD
,/,
the/DT
rupture/NN
was/VBD
300/CD
miles/NNS
long/JJ
and/CC
a/DT
couple/NN
feet/NNS
wide/JJ
./.
Though/IN
the/DT
epicenter/NN
of/IN
Tuesday/NNP
's/POS
temblor/NN
was/VBD
located/VBN
10/CD
miles/NNS
north/RB
of/IN
the/DT
town/NN
of/IN
Santa/NNP
Cruz/NNP
,/,
and/CC
50/CD
miles/NNS
south/RB
of/IN
San/NNP
Francisco/NNP
,/,
its/PRP$
havoc/NN
hopscotched/VBD
up/IN
the/DT
coast/NN
in/IN
seemingly/RB
random/JJ
fashion/NN
./.
But/CC
the/DT
greatest/JJS
damage/NN
was/VBD
visited/VBN
on/IN
buildings/NNS
and/CC
roadways/NNS
perched/VBN
upon/IN
landfill/NN
,/,
as/IN
were/VBD
the/DT
Marina/NNP
District/NNP
of/IN
San/NNP
Francisco/NNP
and/CC
the/DT
Bay/NNP
Bridge/NNP
--/:
two/CD
areas/NNS
of/IN
maximum/JJ
devastation/NN
./.
``/``
Landfill/NN
--/:
loose/JJ
and/CC
unconsolidated/JJ
earth/NN
--/:
may/MD
feel/VB
like/IN
rock/NN
but/CC
it/PRP
behaves/VBZ
like/IN
liquid/NN
when/WRB
you/PRP
shake/VBP
it/PRP
,/,
''/''
said/VBD
Douglas/NNP
Segar/NNP
,/,
professor/NN
of/IN
geosciences/NNS
at/IN
San/NNP
Francisco/NNP
State/NNP
University/NNP
in/IN
a/DT
televised/JJ
interview/NN
./.
``/``
It/PRP
liquefies/VBZ
in/IN
a/DT
patchwork/JJ
quilt/NN
pattern/NN
./.
Our/PRP$
quake/NN
behaved/VBD
much/RB
like/IN
the/DT
Mexico/NNP
City/NNP
earthquake/NN
,/,
where/WRB
great/JJ
damage/NN
was/VBD
miles/NNS
from/IN
the/DT
epicenter/NN
./.
''/''
Mr./NNP
Johnson/NNP
,/,
of/IN
the/DT
Berkeley/NNP
seismographic/JJ
station/NN
,/,
said/VBD
:/:
``/``
Landfill/NN
can/MD
be/VB
done/VBN
if/IN
it/PRP
's/VBZ
properly/RB
compacted/VBN
./.
You/PRP
can/MD
drive/VB
piles/NNS
on/IN
it/PRP
and/CC
build/VB
on/IN
it/PRP
./.
''/''
He/PRP
cited/VBD
the/DT
example/NN
of/IN
San/NNP
Francisco/NNP
's/POS
financial/JJ
district/NN
,/,
where/WRB
many/JJ
new/JJ
glass/NN
towers/NNS
survived/VBD
almost/RB
unscathed/JJ
./.
But/CC
the/DT
public/JJ
policy/NN
issues/NNS
raised/VBN
by/IN
earthquake/NN
damage/NN
will/MD
be/VB
difficult/JJ
to/TO
address/VB
,/,
Mr./NNP
Johnson/NNP
predicted/VBD
./.
``/``
The/DT
attention/NN
span/NN
of/IN
the/DT
public/NN
is/VBZ
short/JJ
,/,
''/''
he/PRP
said/VBD
./.
``/``
We/PRP
've/VBP
known/VBN
for/IN
years/NNS
and/CC
years/NNS
we/PRP
've/VBP
got/VBD
lots/NNS
of/IN
old/JJ
pre-1950s/JJ
brick/NN
and/CC
masonry/NN
buildings/NNS
./.
''/''
One/CD
old/JJ
building/NN
,/,
the/DT
Golden/NNP
State/NNP
Bank/NNP
Building/NNP
on/IN
Front/NNP
Street/NNP
,/,
had/VBD
its/PRP$
yellow/JJ
brick/NN
facade/NN
sheared/VBN
off/RP
by/IN
the/DT
shock/NN
of/IN
the/DT
quake/NN
,/,
leaving/VBG
a/DT
wedge/NN
of/IN
its/PRP$
third/JJ
floor/NN
open/RB
to/TO
the/DT
air/NN
,/,
while/IN
piles/NNS
of/IN
dusty/JJ
bricks/NNS
tumbled/VBD
to/TO
the/DT
street/NN
below/RB
narrowly/RB
missing/VBG
rush-hour/JJ
pedestrians/NNS
and/CC
cars/NNS
./.
Reinforcing/VBG
such/JJ
old/JJ
building/NN
stock/NN
,/,
Mr./NNP
Johnson/NNP
said/VBD
,/,
``/``
comes/VBZ
down/IN
to/TO
money/NN
./.
It/PRP
's/VBZ
a/DT
danger/NN
./.
We/PRP
know/VBP
it/PRP
's/VBZ
there/RB
./.
And/CC
sooner/RB
or/CC
later/RB
,/,
we/PRP
have/VBP
to/TO
do/VB
something/NN
about/IN
it/PRP
./.
''/''
The/DT
urgency/NN
is/VBZ
heightened/VBN
because/RB
this/DT
week/NN
's/POS
earthquake/NN
--/:
while/IN
major/JJ
and/CC
followed/VBN
by/IN
hundreds/NNS
of/IN
aftershocks/NNS
--/:
did/VBD
n't/RB
release/VB
enough/JJ
pent-up/JJ
energy/NN
tension/NN
along/IN
the/DT
faultlines/NNS
to/TO
preclude/VB
more/JJR
and/CC
bigger/JJR
quakes/NNS
soon/RB
./.
``/``
The/DT
big/JJ
one/CD
is/VBZ
still/RB
due/JJ
,/,
''/''
Mr./NNP
Johnson/NNP
predicted/VBD
in/IN
an/DT
interview/NN
./.
``/``
The/DT
Bay/NNP
Area/NNP
has/VBZ
three/CD
very/RB
dangerous/JJ
faults/NNS
,/,
the/DT
San/NNP
Andreas/NNP
,/,
the/DT
Hayward/NNP
fault/NN
and/CC
the/DT
Calaveras/NNS
fault/NN
./.
It/PRP
Tuesday/NNP
's/POS
quake/NN
has/VBZ
n't/RB
solved/VBD
our/PRP$
problem/NN
./.
In/IN
California/NNP
,/,
this/DT
is/VBZ
the/DT
reality/NN
./.
''/''
Coca-Cola/NNP
Co./NNP
may/MD
be/VB
about/RB
to/TO
intensify/VB
the/DT
cola/NN
wars/NNS
./.
Coke/NNP
said/VBD
it/PRP
will/MD
test/NN
market/VB
a/DT
caffeine-free/JJ
version/NN
of/IN
its/PRP$
flagship/JJ
brand/NN
,/,
Coca-Cola/NNP
Classic/NNP
,/,
beginning/VBG
next/JJ
week/NN
in/IN
Charlotte/NNP
,/,
N.C/NNP
./.
Other/JJ
,/,
as/RB
yet/RB
unnamed/JJ
,/,
cities/NNS
will/MD
follow/VB
./.
If/IN
all/DT
goes/VBZ
well/RB
,/,
the/DT
product/NN
will/MD
be/VB
rolled/VBN
out/RP
for/IN
national/JJ
sales/NNS
sometime/RB
next/IN
year/NN
,/,
a/DT
Coke/NNP
spokesman/NN
said/VBD
./.
After/IN
the/DT
confusion/NN
surrounding/VBG
the/DT
change/NN
of/IN
the/DT
Coke/NNP
formula/NN
in/IN
1985/CD
,/,
Coca-Cola/NNP
was/VBD
reluctant/JJ
to/TO
clutter/VB
the/DT
Classic/NNP
name/NN
with/IN
a/DT
brand/NN
extension/NN
./.
But/CC
now/RB
,/,
the/DT
soft-drink/NN
giant/NN
appears/VBZ
willing/JJ
to/TO
take/VB
the/DT
risk/NN
./.
``/``
The/DT
name/NN
Classic/NNP
Coke/NNP
has/VBZ
tremendous/JJ
value/NN
,/,
and/CC
they/PRP
have/VBP
n't/RB
merchandised/VBN
that/DT
name/NN
before/RB
,/,
''/''
says/VBZ
Jesse/NNP
Meyers/NNP
,/,
publisher/NN
of/IN
the/DT
trade/NN
journal/NN
Beverage/NNP
Digest/NNP
./.
The/DT
Coke/NNP
spokesman/NN
said/VBD
a/DT
caffeine-free/JJ
Classic/NN
should/MD
help/VB
increase/VB
volume/NN
of/IN
the/DT
original/JJ
brand/NN
./.
Indeed/RB
,/,
analysts/NNS
have/VBP
said/VBD
that/IN
the/DT
absence/NN
of/IN
new/JJ
products/NNS
,/,
among/IN
other/JJ
factors/NNS
,/,
has/VBZ
limited/VBN
sales/JJ
growth/NN
throughout/IN
the/DT
industry/NN
./.
Coke/NNP
now/RB
leads/VBZ
Pepsi/NNP
in/IN
market/NN
share/NN
in/IN
caffeine-free/JJ
diet/NN
colas/NNS
but/CC
trails/VBZ
Pepsi/NNP
in/IN
sales/NNS
of/IN
caffeine-free/JJ
sugared/JJ
colas/NNS
,/,
according/VBG
to/TO
Beverage/NNP
Digest/NNP
./.
Coke/NNP
introduced/VBD
a/DT
caffeine-free/JJ
sugared/JJ
cola/NN
based/VBN
on/IN
its/PRP$
original/JJ
formula/NN
in/IN
1983/CD
./.
It/PRP
switched/VBD
to/TO
a/DT
caffeine-free/JJ
formula/NN
using/VBG
its/PRP$
new/JJ
Coke/NNP
in/IN
1985/CD
./.
Coke/NNP
has/VBZ
been/VBN
studying/VBG
the/DT
possibility/NN
of/IN
introducing/VBG
a/DT
caffeine-free/JJ
Classic/NNP
for/IN
a/DT
year/NN
,/,
a/DT
company/NN
spokesman/NN
said/VBD
./.
He/PRP
said/VBD
large/JJ
increases/NNS
in/IN
sales/NNS
of/IN
other/JJ
non-caffeine/JJ
soft/JJ
drinks/NNS
make/VBP
the/DT
timing/NN
right/RB
now/RB
./.
CALIFORNIA/NNP
STRUGGLED/VBD
with/IN
the/DT
aftermath/NN
of/IN
a/DT
Bay/NNP
area/NN
earthquake/NN
./.
As/IN
aftershocks/NNS
shook/VBD
the/DT
San/NNP
Francisco/NNP
Bay/NNP
area/NN
,/,
rescuers/NNS
searched/VBD
through/IN
rubble/NN
for/IN
survivors/NNS
of/IN
Tuesday/NNP
's/POS
temblor/NN
,/,
and/CC
residents/NNS
picked/VBD
their/PRP$
way/NN
through/IN
glass-strewn/JJ
streets/NNS
./.
In/IN
Oakland/NNP
,/,
hopes/NNS
faded/VBD
for/IN
finding/VBG
any/DT
more/JJR
survivors/NNS
within/IN
the/DT
concrete/NN
and/CC
steel/NN
from/IN
the/DT
collapse/NN
of/IN
an/DT
interstate/JJ
highway/NN
./.
At/IN
least/JJS
270/CD
people/NNS
were/VBD
reported/VBN
killed/VBN
and/CC
1,400/CD
injured/VBN
in/IN
the/DT
rush-hour/JJ
tremor/NN
that/WDT
caused/VBD
billions/NNS
of/IN
dollars/NNS
of/IN
damage/NN
along/IN
100/CD
miles/NNS
of/IN
the/DT
San/NNP
Andreas/NNP
fault/NN
./.
Bush/NNP
declared/VBD
the/DT
region/NN
a/DT
major/JJ
disaster/NN
area/NN
and/CC
the/DT
military/NN
was/VBD
mobilized/VBN
to/TO
prevent/VB
looting/NN
./.
The/DT
baseball/NN
commissioner/NN
said/VBD
the/DT
third/JJ
game/NN
of/IN
the/DT
World/NNP
Series/NNP
between/IN
the/DT
Giants/NNP
and/CC
the/DT
Athletics/NNP
would/MD
be/VB
played/VBN
Tuesday/NNP
in/IN
Candlestick/NNP
Park/NNP
./.
HONECKER/NNP
WAS/VBD
OUSTED/VBN
as/IN
leader/NN
of/IN
East/NNP
Germany/NNP
amid/IN
growing/VBG
unrest/NN
./.
The/DT
77-year-old/JJ
official/NN
,/,
who/WP
oversaw/VBD
the/DT
building/NN
of/IN
the/DT
Berlin/NNP
Wall/NNP
,/,
was/VBD
removed/VBN
during/IN
a/DT
meeting/NN
of/IN
the/DT
163-member/JJ
Communist/NNP
Party/NNP
Central/NNP
Committee/NNP
in/IN
East/NNP
Berlin/NNP
./.
Honecker/NNP
,/,
who/WP
was/VBD
reported/VBN
ill/JJ
following/VBG
gall-bladder/NN
surgery/NN
in/IN
August/NNP
,/,
said/VBD
he/PRP
was/VBD
resigning/VBG
for/IN
health/NN
reasons/NNS
./.
He/PRP
was/VBD
succeeded/VBN
by/IN
internal-security/NN
chief/NN
Egon/NNP
Krenz/NNP
,/,
52/CD
,/,
a/DT
hard-liner/NN
who/WP
quickly/RB
ruled/VBD
out/RP
any/DT
sharing/NN
of/IN
power/NN
with/IN
pro-democracy/JJ
groups/NNS
./.
Honecker/NNP
's/POS
departure/NN
came/VBD
after/IN
weeks/NNS
of/IN
street/NN
protests/NNS
and/CC
an/DT
exodus/NN
to/TO
the/DT
West/NNP
of/IN
East/NNP
Germans/NNPS
who/WP
had/VBD
become/VBN
disenchanted/JJ
with/IN
his/PRP$
rule/NN
./.
HUNGARY/NNP
ADOPTED/VBD
constitutional/JJ
changes/NNS
to/TO
form/VB
a/DT
democratic/JJ
system/NN
./.
At/IN
a/DT
nationally/RB
televised/VBN
legislative/JJ
session/NN
in/IN
Budapest/NNP
,/,
the/DT
Parliament/NNP
overwhelmingly/RB
approved/VBD
changes/NNS
formally/RB
ending/VBG
one-party/JJ
domination/NN
in/IN
the/DT
country/NN
,/,
regulating/VBG
free/JJ
elections/NNS
by/IN
next/JJ
summer/NN
and/CC
establishing/VBG
the/DT
office/NN
of/IN
state/NN
president/NN
to/TO
replace/VB
a/DT
21-member/JJ
council/NN
./.
The/DT
country/NN
was/VBD
renamed/VBN
the/DT
Republic/NNP
of/IN
Hungary/NNP
./.
Like/IN
other/JJ
Soviet/JJ
bloc/NN
nations/NNS
,/,
it/PRP
had/VBD
been/VBN
known/VBN
as/IN
a/DT
``/``
people/NNS
's/POS
republic/NN
''/''
since/IN
The/DT
voting/NN
for/IN
new/JJ
laws/NNS
followed/VBD
dissolution/NN
of/IN
Hungary/NNP
's/POS
Communist/NNP
Party/NNP
this/DT
month/NN
and/CC
its/PRP$
replacement/NN
by/IN
a/DT
Western-style/JJ
Socialist/NNP
Party/NNP
./.
The/DT
space/NN
shuttle/NN
Atlantis/NNP
blasted/VBD
into/IN
orbit/NN
from/IN
Cape/NNP
Canaveral/NNP
,/,
Fla./NNP
,/,
and/CC
its/PRP$
crew/NN
of/IN
five/CD
astronauts/NNS
launched/VBD
the/DT
nuclear-powered/JJ
Galileo/NNP
space/NN
probe/NN
on/IN
a/DT
flight/NN
to/TO
the/DT
planet/NN
Jupiter/NNP
./.
The/DT
$/$
1.4/CD
billion/CD
robot/NN
spacecraft/NN
's/POS
exploratory/JJ
mission/NN
is/VBZ
to/TO
take/VB
six/CD
years/NNS
./.
The/DT
shuttle/NN
is/VBZ
slated/VBN
to/TO
return/VB
Monday/NNP
to/TO
California/NNP
./.
South/NNP
Korea/NNP
's/POS
President/NNP
Roh/NNP
addressed/VBD
a/DT
joint/JJ
House-Senate/NNP
meeting/NN
and/CC
urged/VBD
patience/NN
over/IN
U.S./NNP
demands/NNS
for/IN
the/DT
opening/NN
of/IN
Seoul/NNP
's/POS
markets/NNS
to/TO
more/JJR
American/JJ
goods/NNS
,/,
saying/VBG
trade/NN
issues/NNS
would/MD
be/VB
``/``
resolved/VBN
to/TO
mutual/JJ
satisfaction/NN
./.
''/''
He/PRP
also/RB
said/VBD
tragic/JJ
results/NNS
could/MD
follow/VB
any/DT
``/``
hint/NN
of/IN
weakening/NN
''/''
of/IN
the/DT
U.S./NNP
defense/NN
commitment/NN
to/TO
Seoul/NNP
./.
The/DT
Census/NNP
Bureau/NNP
reported/VBD
that/IN
13.1/CD
%/NN
of/IN
the/DT
U.S./NNP
population/NN
,/,
or/CC
31.9/CD
million/CD
people/NNS
,/,
were/VBD
living/VBG
in/IN
poverty/NN
in/IN
1988/CD
./.
Last/JJ
year/NN
's/POS
figure/NN
was/VBD
down/RB
from/IN
13.4/CD
%/NN
in/IN
1987/CD
and/CC
marked/VBD
the/DT
fifth/JJ
consecutive/JJ
annual/JJ
decline/NN
in/IN
the/DT
poverty/NN
rate/NN
./.
Per/IN
capita/NN
income/NN
rose/VBD
1.7/CD
%/NN
to/TO
$/$
13,120/CD
,/,
but/CC
median/JJ
family/NN
income/NN
fell/VBD
0.2/CD
%/NN
./.
The/DT
Bush/NNP
administration/NN
accused/VBD
Israeli/NNP
Prime/NNP
Minister/NNP
Shamir/NNP
of/IN
hindering/VBG
peace/NN
efforts/NNS
in/IN
the/DT
Mideast/NNP
with/IN
``/``
unhelpful/JJ
''/''
and/CC
disappointing/JJ
statements/NNS
./.
Shamir/NNP
said/VBD
Tuesday/NNP
that/IN
he/PRP
was/VBD
prepared/VBN
to/TO
risk/VB
a/DT
policy/NN
conflict/NN
with/IN
the/DT
U.S./NNP
over/IN
an/DT
Egyptian/JJ
plan/NN
to/TO
hold/VB
direct/JJ
Israeli-Palestinian/JJ
talks/NNS
,/,
which/WDT
the/DT
premier/NN
's/POS
Likud/NNP
bloc/NN
opposes/VBZ
./.
Cuba/NNP
was/VBD
elected/VBN
to/TO
the/DT
U.N./NNP
Security/NNP
Council/NNP
for/IN
the/DT
first/JJ
time/NN
since/IN
its/PRP$
Castro-led/JJ
revolution/NN
30/CD
years/NNS
ago/RB
./.
The/DT
election/NN
was/VBD
by/IN
secret/JJ
ballot/NN
in/IN
the/DT
General/NNP
Assembly/NNP
./.
The/DT
U.S./NNP
did/VBD
n't/RB
openly/RB
oppose/VB
Cuba/NNP
's/POS
seating/NN
as/IN
the/DT
Latin/JJ
American/JJ
council/NN
delegate/NN
./.
Britain/NNP
's/POS
Prime/NNP
Minister/NNP
Thatcher/NNP
told/VBD
a/DT
Commonwealth/NNP
summit/NN
in/IN
Kuala/NNP
Lumpur/NNP
,/,
Malaysia/NNP
,/,
that/WDT
sanctions/NNS
against/IN
South/NNP
Africa/NNP
were/VBD
``/``
utterly/RB
irresponsible/JJ
,/,
''/''
officials/NNS
said/VBD
./.
But/CC
other/JJ
nations/NNS
at/IN
the/DT
opening/NN
of/IN
the/DT
49-nation/JJ
meeting/NN
of/IN
Britain/NNP
and/CC
its/PRP$
former/JJ
colonies/NNS
pressed/VBD
for/IN
continued/JJ
or/CC
stronger/JJR
embargoes/NNS
in/IN
an/DT
effort/NN
to/TO
end/VB
apartheid/NN
./.
Arab/JJ
officials/NNS
in/IN
Saudi/NNP
Arabia/NNP
said/VBD
three-week-old/JJ
talks/NNS
by/IN
Lebanese/JJ
lawmakers/NNS
aimed/VBN
at/IN
ending/VBG
Lebanon/NNP
's/POS
civil/JJ
war/NN
appeared/VBD
about/RB
to/TO
collapse/VB
./.
Christian/JJ
legislators/NNS
are/VBP
insisting/VBG
on/IN
a/DT
Syrian/JJ
troop/NN
pullout/NN
from/IN
Lebanon/NNP
before/IN
agreeing/VBG
to/TO
political/JJ
changes/NNS
giving/VBG
the/DT
nation/NN
's/POS
Moslems/NNPS
a/DT
greater/JJR
role/NN
in/IN
Beirut/NNP
's/POS
government/NN
./.
Colombia/NNP
's/POS
judges/NNS
launched/VBD
a/DT
72-hour/JJ
strike/NN
to/TO
press/VB
security/NN
demands/NNS
following/VBG
Tuesday/NNP
's/POS
murder/NN
of/IN
a/DT
High/NNP
Court/NNP
justice/NN
in/IN
Medellin/NNP
./.
The/DT
country/NN
's/POS
narcotics/NNS
traffickers/NNS
claimed/VBD
responsibility/NN
for/IN
the/DT
slaying/NN
./.
Most/JJS
of/IN
the/DT
country/NN
's/POS
20,000/CD
judges/NNS
and/CC
judicial/JJ
employees/NNS
joined/VBD
the/DT
work/NN
stoppage/NN
./.
Charles/NNP
S./NNP
Mitchell/NNP
,/,
a/DT
vice/NN
president/NN
with/IN
Homart/NNP
Development/NNP
Co./NNP
,/,
the/DT
real/JJ
estate/NN
development/NN
subsidiary/NN
of/IN
Sears/NNP
,/,
Roebuck/NNP
&/CC
Co./NNP
,/,
was/VBD
named/VBN
president/NN
of/IN
Figgie/NNP
Properties/NNP
,/,
a/DT
real/JJ
estate/NN
development/NN
unit/NN
./.
He/PRP
succeeds/VBZ
William/NNP
Kohut/NNP
,/,
who/WP
resigned/VBD
earlier/RBR
this/DT
year/NN
./.
Also/RB
,/,
Richard/NNP
A./NN
Barkley/NNP
,/,
a/DT
former/JJ
marketing/NN
executive/NN
with/IN
FMC/NNP
Corp./NNP
,/,
was/VBD
appointed/VBN
president/NN
of/IN
Continental/NNP
Container/NNP
Systems/NNP
,/,
a/DT
producer/NN
of/IN
can/NN
closing/VBG|NN
machinery/NN
that/IN
Figgie/NNP
acquired/VBD
late/RB
last/JJ
year/NN
./.
Figgie/NNP
is/VBZ
a/DT
fire/NN
protection/NN
,/,
electronics/NN
and/CC
industrial/JJ
products/NNS
concern/NN
./.
Dow/NNP
Chemical/NNP
Co./NNP
said/VBD
third-quarter/JJ
net/JJ
income/NN
slipped/VBD
6.8/CD
%/NN
from/IN
a/DT
record/JJ
year-ago/JJ
quarter/NN
./.
The/DT
decline/NN
broke/VBD
a/DT
streak/NN
of/IN
10/CD
quarters/NNS
in/IN
which/WDT
Dow/NNP
posted/VBD
earnings/NNS
increases/NNS
./.
Dow/NNP
's/POS
third-quarter/JJ
net/NN
fell/VBD
to/TO
$/$
589/CD
million/CD
,/,
or/CC
$/$
3.29/CD
a/DT
share/NN
,/,
from/IN
$/$
632/CD
million/CD
,/,
or/CC
$/$
3.36/CD
a/DT
share/NN
,/,
a/DT
year/NN
ago/RB
./.
Sales/NNS
in/IN
the/DT
latest/JJS
quarter/NN
rose/VBD
2/CD
%/NN
to/TO
$/$
4.25/CD
billion/CD
from/IN
$/$
4.15/CD
billion/CD
a/DT
year/NN
earlier/RBR
./.
Dow/NNP
closed/VBD
at/IN
$/$
94.625/CD
a/DT
share/NN
,/,
up/RB
75/CD
cents/NNS
,/,
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
A/DT
spokeswoman/NN
said/VBD
Dow/NNP
is/VBZ
comfortable/JJ
with/IN
Wall/NNP
Street/NNP
expectations/NNS
that/IN
full-year/JJ
earnings/NNS
will/MD
total/VB
about/RB
$/$
14.60/CD
a/DT
share/NN
,/,
compared/VBN
with/IN
last/JJ
year/NN
's/POS
record/JJ
net/NN
of/IN
$/$
2.4/CD
billion/CD
,/,
or/CC
$/$
12.76/CD
a/DT
share/NN
./.
But/CC
that/DT
signal/NN
on/IN
full-year/JJ
profit/NN
casts/VBZ
doubt/NN
on/IN
whether/IN
Dow/NNP
will/MD
improve/VB
on/IN
its/PRP$
year-ago/JJ
fourth-quarter/JJ
net/NN
of/IN
$/$
3.44/CD
a/DT
share/NN
,/,
or/CC
$/$
635/CD
million/CD
./.
Dow/NNP
would/MD
earn/VB
$/$
14.85/CD
a/DT
share/NN
for/IN
the/DT
year/NN
if/IN
it/PRP
equaled/VBD
that/IN
year-ago/JJ
fourth-quarter/JJ
performance/NN
./.
Dow/NNP
officials/NNS
were/VBD
signaling/VBG
that/IN
the/DT
company/NN
would/MD
earn/VB
less/JJR
than/IN
$/$
15/CD
a/DT
share/NN
this/DT
year/NN
even/RB
before/IN
they/PRP
announced/VBD
in/IN
July/NNP
a/DT
plan/NN
to/TO
acquire/VB
67/CD
%/NN
of/IN
Marion/NNP
Laboratories/NNP
Inc/NNP
./.
That/DT
acquisition/NN
could/MD
further/RB
dilute/VB
earnings/NNS
per/IN
share/NN
this/DT
year/NN
,/,
the/DT
company/NN
spokeswoman/NN
said/VBD
./.
Dow/NNP
has/VBZ
n't/RB
said/VBD
exactly/RB
what/WP
impact/NN
the/DT
Marion/NNP
acquisition/NN
will/MD
have/VB
on/IN
1989/CD
earnings/NNS
./.
Dow/NNP
blamed/VBD
the/DT
third-quarter/JJ
earnings/NNS
drop/NN
on/IN
several/JJ
factors/NNS
,/,
including/VBG
softer/JJR
prices/NNS
for/IN
polyethylene/NN
and/CC
other/JJ
basic/JJ
chemicals/NNS
,/,
a/DT
slower/JJR
U.S./NNP
economy/NN
and/CC
a/DT
stronger/JJR
dollar/NN
,/,
which/WDT
made/VBD
Dow/NNP
's/POS
exports/NNS
from/IN
the/DT
U.S./NNP
more/RBR
expensive/JJ
to/TO
overseas/JJ
customers/NNS
./.
Another/DT
problem/NN
was/VBD
a/DT
7/CD
%/NN
increase/NN
in/IN
operating/NN
costs/NNS
at/IN
a/DT
time/NN
when/WRB
revenue/NN
was/VBD
rising/VBG
by/IN
only/RB
2/CD
%/NN
./.
For/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
the/DT
year/NN
,/,
Dow/NNP
earned/VBD
$/$
2.06/CD
billion/CD
,/,
or/CC
$/$
11.41/CD
a/DT
share/NN
,/,
up/RB
17/CD
%/NN
from/IN
$/$
1.76/CD
billion/CD
,/,
or/CC
$/$
9.32/CD
a/DT
share/NN
,/,
a/DT
year/NN
ago/RB
./.
Sales/NNS
for/IN
the/DT
latest/JJS
nine/CD
months/NNS
rose/VBD
7.7/CD
%/NN
to/TO
$/$
13.34/CD
billion/CD
from/IN
$/$
12.38/CD
billion/CD
in/IN
the/DT
year-ago/JJ
period/NN
./.
Whether/IN
or/CC
not/RB
``/``
great/JJ
cases/NNS
make/VBP
bad-law/NN
''/''
--/:
as/IN
Justice/NNP
Holmes/NNP
asserted/VBD
--/:
who/WP
can/MD
doubt/VB
that/IN
when/WRB
great/JJ
confirmation/NN
hearings/NNS
turn/VBP
on/IN
the/DT
nominee/NN
's/POS
response/NN
to/TO
these/DT
great/JJ
cases/NNS
they/PRP
make/VBP
bad/JJ
judicial/JJ
history/NN
?/.
Ethan/NNP
Bronner/NNP
's/POS
``/``
Battle/NN
for/IN
Justice/NN
:/:
How/WRB
the/DT
Bork/NNP
Nomination/NN
Shook/VBD
America/NNP
''/''
(/(
Norton/NNP
,/,
399/CD
pages/NNS
,/,
$/$
22.50/CD
a/DT
spirited/JJ
narrative/NN
of/IN
the/DT
nastiest/JJS
of/IN
these/DT
hearings/NNS
,/,
done/VBN
with/IN
journalistic/JJ
verve/NN
,/,
but/CC
with/IN
a/DT
flawed/JJ
legal/JJ
philosophy/NN
./.
While/IN
the/DT
book/NN
amply/RB
justifies/VBZ
its/PRP$
subtitle/NN
,/,
the/DT
title/NN
itself/PRP
is/VBZ
dubious/JJ
./.
What/WP
shook/VBD
America/NNP
was/VBD
not/RB
a/DT
battle/NN
for/IN
justice/NN
but/CC
for/IN
naked/JJ
power/NN
,/,
in/IN
which/WDT
an/DT
army/NN
of/IN
judicial/JJ
activists/NNS
rolled/VBD
over/IN
a/DT
judge/NN
they/PRP
had/VBD
demonized/VBN
./.
In/IN
its/PRP$
basic/JJ
structure/NN
and/CC
style/NN
the/DT
book/NN
is/VBZ
novelistic/JJ
,/,
with/IN
piquant/JJ
character/NN
portrayal/NN
,/,
hard-wire/JJ
action/NN
and/CC
devious/JJ
intrigue/NN
of/IN
the/DT
sort/NN
more/RBR
likely/JJ
to/TO
be/VB
encountered/VBN
in/IN
a/DT
Washington/NNP
docudrama/NN
than/IN
in/IN
a/DT
constitutional/JJ
history/NN
./.
Mr./NNP
Bronner/NNP
seems/VBZ
to/TO
believe/VB
that/IN
the/DT
hearings/NNS
could/MD
have/VB
gone/VBN
either/DT
way/NN
./.
I/PRP
doubt/VBP
that/DT
./.
Given/VBN
Democratic/JJ
frustration/NN
with/IN
the/DT
Reagan/NNP
victories/NNS
and/CC
Court/NNP
appointments/NNS
,/,
the/DT
contingency/NN
plans/NNS
in/IN
place/NN
,/,
and/CC
Mr./NNP
Bork/NNP
's/POS
paper/NN
trail/NN
of/IN
vulnerable/JJ
writings/NNS
,/,
it/PRP
was/VBD
pretty/RB
clear/JJ
that/IN
Judge/NNP
Bork/NNP
never/RB
stood/VBD
much/JJ
chance/NN
of/IN
being/VBG
confirmed/VBN
./.
As/IN
Mr./NNP
Bronner/NNP
himself/PRP
says/VBZ
,/,
the/DT
smell/NN
of/IN
``/``
raw/JJ
meat/NN
''/''
was/VBD
in/IN
the/DT
air/NN
./.
Perhaps/RB
because/IN
they/PRP
won/VBD
,/,
Mr./NNP
Bork/NNP
's/POS
attackers/NNS
come/VBD
through/RP
more/RBR
vividly/RB
than/IN
his/PRP$
defenders/NNS
./.
Ralph/NNP
Neas/NNP
was/VBD
the/DT
organizing/NN
genius/NN
,/,
whipping/VBG
a/DT
conglomerate/NN
of/IN
pressure/NN
groups/NNS
into/IN
an/DT
irresistible/JJ
attacking/NN
force/NN
./.
Harvard/NNP
's/POS
Laurence/NNP
Tribe/NNP
was/VBD
the/DT
constitutional/JJ
heavy/NN
,/,
laying/VBG
out/RP
legal/JJ
strategies/NNS
for/IN
the/DT
senators/NNS
and/CC
witnesses/NNS
to/TO
follow/VB
./.
But/CC
it/PRP
was/VBD
Ted/NNP
Kennedy/NNP
who/WP
scored/VBD
most/RBS
effectively/RB
with/IN
his/PRP$
searing/JJ
portrayal/NN
of/IN
``/``
Robert/NNP
Bork/NNP
's/POS
America/NNP
''/''
--/:
the/DT
parade/NN
of/IN
imaginary/JJ
horribles/NNS
that/WDT
would/MD
follow/VB
logically/RB
,/,
he/PRP
claimed/VBD
,/,
from/IN
the/DT
positions/NNS
Mr./NNP
Bork/NNP
had/VBD
taken/VBN
over/IN
the/DT
space/NN
of/IN
two/CD
decades/NNS
./.
Sen./NNP
Kennedy/NNP
,/,
never/RB
mind/VB
his/PRP$
dubious/JJ
credentials/NNS
for/IN
the/DT
moral/JJ
high/JJ
ground/NN
,/,
emoted/VBD
brilliantly/RB
./.
I/PRP
add/VBP
two/CD
others/NNS
./.
Republican/NNP
Sen./NNP
Arlen/NNP
Specter/NNP
of/IN
Pennsylvania/NNP
engaged/VBD
the/DT
nominee/NN
in/IN
a/DT
verbal/JJ
contest/NN
aimed/VBN
at/IN
showing/VBG
that/IN
Mr./NNP
Bork/NNP
was/VBD
willing/JJ
to/TO
stretch/VB
the/DT
Constitution/NNP
in/IN
one/CD
area/NN
free/JJ
speech/NN
rigid/JJ
in/IN
all/PDT
the/DT
others/NNS
./.
It/PRP
achieved/VBD
a/DT
good/JJ
media/NN
play/NN
,/,
and/CC
enabled/VBD
Sen./NNP
Specter/NNP
and/CC
others/NNS
to/TO
vote/VB
against/IN
Mr./NNP
Bork/NNP
out/IN
of/IN
``/``
conscience/NN
./.
''/''
Further/JJ
ammunition/NN
came/VBD
from/IN
left/JJ
legal/JJ
theorist/NN
Ronald/NNP
Dworkin/NNP
,/,
who/WP
in/IN
the/DT
New/NNP
York/NNP
Review/NNP
of/IN
Books/NNP
painted/VBD
a/DT
picture/NN
of/IN
a/DT
constitutional/JJ
zombie/NN
willfully/RB
reading/VBG
his/PRP$
personal/JJ
prejudices/NNS
into/IN
the/DT
Constitution/NNP
,/,
particularly/RB
in/IN
the/DT
area/NN
of/IN
``/``
original/JJ
intent/NN
./.
''/''
The/DT
charge/NN
of/IN
being/VBG
``/``
outside/IN
the/DT
mainstream/NN
''/''
of/IN
legal/JJ
thought/NN
gravely/RB
undercut/VBD
Mr./NNP
Bork/NNP
's/POS
scholarly/JJ
standing/NN
,/,
leaving/VBG
him/PRP
bleeding/VBG
on/IN
the/DT
platform/NN
./.
The/DT
nomination/NN
still/RB
might/MD
have/VB
been/VBN
salvaged/VBN
if/IN
a/DT
number/NN
of/IN
Democratic/JJ
moderates/NNS
in/IN
the/DT
South/NNP
and/CC
Southwest/NNP
had/VBD
broken/VBN
party/NN
lines/NNS
./.
But/CC
Democratic/NNP
Sen./NNP
Bennett/NNP
Johnson/NNP
of/IN
Louisiana/NNP
reminded/VBD
the/DT
little/JJ
band/NN
that/IN
anti-Bork/JJ
blacks/NNS
and/CC
women/NNS
could/MD
furnish/VB
the/DT
margin/NN
to/TO
punish/VB
them/PRP
in/IN
their/PRP$
next/JJ
Senate/NNP
elections/NNS
./.
Demographics/NNS
converged/VBD
with/IN
``/``
mainstream/NN
''/''
and/CC
demonizing/NN
to/TO
seal/VB
Robert/NNP
Bork/NNP
's/POS
fate/NN
./.
The/DT
upshot/NN
?/.
Mr./NNP
Bork/NNP
's/POS
opponents/NNS
chose/VBD
the/DT
battlefield/NN
,/,
held/VBD
it/PRP
and/CC
kept/VBD
it/PRP
./.
Yet/CC
with/IN
the/DT
smooth/JJ
confirmation/NN
of/IN
Anthony/NNP
Kennedy/NNP
,/,
an/DT
``/``
80/CD
percenter/NN
''/''
only/RB
slightly/RB
less/RBR
supportive/JJ
of/IN
judicial/JJ
restraint/NN
than/IN
Mr./NNP
Bork/NNP
,/,
the/DT
Democrats/NNPS
may/MD
have/VB
won/VBN
the/DT
battle/NN
but/CC
lost/VBN
the/DT
war/NN
./.
Another/DT
upshot/NN
,/,
however/RB
,/,
was/VBD
the/DT
chilling/JJ
message/NN
the/DT
Bork/NNP
hearings/NNS
sent/VBD
into/IN
the/DT
judicial/JJ
culture/NN
from/IN
which/WDT
the/DT
Supreme/NNP
Court/NNP
draws/VBZ
its/PRP$
talent/NN
./.
The/DT
word/NN
went/VBD
forth/RB
to/TO
every/DT
law/NN
school/NN
that/IN
those/DT
with/IN
federal/JJ
court/NN
ambitions/NNS
must/MD
travel/VB
a/DT
safe/JJ
constitutional/JJ
journey/NN
,/,
with/IN
no/DT
paper/NN
trail/NN
and/CC
no/DT
bite/NN
to/TO
their/PRP$
tongue/NN
or/CC
pen/NN
./.
Unfortunately/RB
,/,
the/DT
author/NN
simply/RB
does/VBZ
n't/RB
supply/VB
the/DT
philosophical/JJ
frame/NN
to/TO
sustain/VB
his/PRP$
reportorial/JJ
talents/NNS
./.
He/PRP
has/VBZ
too/RB
readily/RB
swallowed/VBN
the/DT
case/NN
for/IN
the/DT
activist/JJ
law/NN
school/NN
culture/NN
./.
Probing/VBG
more/RBR
deeply/RB
into/IN
the/DT
doctrine/NN
of/IN
``/``
judicial/JJ
restraint/NN
,/,
''/''
he/PRP
would/MD
have/VB
found/VBN
a/DT
long/JJ
history/NN
going/VBG
back/RB
to/TO
the/DT
great/JJ
decisions/NNS
of/IN
Justice/NNP
Holmes/NNP
./.
He/PRP
would/MD
discover/VB
it/PRP
also/RB
in/IN
Alexander/NNP
Bickel/NNP
,/,
a/DT
subtle/JJ
constitutional/JJ
scholar/NN
,/,
Mr./NNP
Bork/NNP
's/POS
closest/JJS
friend/NN
at/IN
Yale/NNP
,/,
whose/WP$
influence/NN
on/IN
the/DT
judge/NN
goes/VBZ
well/RB
beyond/IN
Mr./NNP
Bronner/NNP
's/POS
reporting/NN
./.
Still/RB
,/,
the/DT
long/JJ
view/NN
of/IN
Robert/NNP
Bork/NNP
as/IN
constitutional/JJ
thinker/NN
must/MD
be/VB
a/DT
spotty/JJ
one/CD
./.
His/PRP$
strength/NN
lies/VBZ
in/IN
his/PRP$
majoritarian/JJ
doctrine/NN
,/,
which/WDT
keeps/VBZ
the/DT
Court/NNP
clear/JJ
of/IN
transient/JJ
group/NN
pressures/NNS
and/CC
leaves/VBZ
most/JJS
decisions/NNS
in/IN
a/DT
democracy/NN
to/TO
elected/JJ
legislatures/NNS
and/CC
executives/NNS
./.
Unfortunately/RB
,/,
Mr./NNP
Bork/NNP
failed/VBD
to/TO
distinguish/VB
between/IN
such/JJ
pressures/NNS
and/CC
the/DT
emergence/NN
of/IN
great/JJ
issues/NNS
critical/JJ
to/TO
a/DT
society/NN
that/WDT
must/MD
be/VB
settled/VBN
judicially/RB
if/IN
it/PRP
is/VBZ
to/TO
cohere/VB
./.
The/DT
question/NN
of/IN
segregated/JJ
schools/NNS
,/,
in/IN
Brown/NNP
vs./IN
Board/NNP
of/IN
Education/NNP
,/,
was/VBD
such/PDT
an/DT
issue/NN
./.
In/IN
our/PRP$
time/NN
abortion/NN
has/VBZ
become/VBN
another/DT
,/,
best/RBS
left/VBN
to/TO
a/DT
line/NN
of/IN
Supreme/NNP
Court/NNP
decisions/NNS
rather/RB
than/IN
to/TO
the/DT
chaos/NN
of/IN
50/CD
state/NN
legislatures/NNS
./.
A/DT
reflective/JJ
and/CC
growing/JJ
consensus/NN
of/IN
Americans/NNPS
clearly/RB
wishes/VBZ
to/TO
apply/VB
the/DT
right/NN
to/TO
privacy/NN
in/IN
contraceptive/JJ
matters/NNS
the/DT
Griswold/NNP
case/NN
abortion/NN
as/RB
well/RB
./.
One/PRP
can/MD
understand/VB
Mr./NNP
Bork/NNP
's/POS
fear/NN
that/IN
the/DT
new/JJ
right/NN
to/TO
privacy/NN
will/MD
become/VB
intolerably/RB
stretched/VBN
,/,
though/IN
a/DT
Supreme/NNP
Court/NNP
composed/VBN
of/IN
men/NNS
and/CC
women/NNS
with/IN
realism/NN
,/,
guts/NNS
and/CC
a/DT
sense/NN
of/IN
limits/NNS
should/MD
be/VB
able/JJ
to/TO
manage/VB
it/PRP
./.
What/WP
is/VBZ
certain/JJ
is/VBZ
that/IN
if/IN
Americans/NNPS
allow/VBP
another/DT
happening/NN
like/IN
the/DT
degrading/JJ
Bork/NNP
confirmation/NN
circus/NN
,/,
it/PRP
will/MD
be/VB
at/IN
their/PRP$
peril/NN
./.
Mr./NNP
Lerner/NNP
is/VBZ
a/DT
writer/NN
and/CC
historian/NN
living/VBG
in/IN
New/NNP
York/NNP
./.
Sotheby/NNP
's/POS
Inc./NNP
,/,
the/DT
world/NN
's/POS
biggest/JJS
auction/NN
house/NN
,/,
is/VBZ
taking/VBG
a/DT
huge/JJ
Wall/NNP
Street-style/JJ
risk/NN
on/IN
the/DT
outcome/NN
of/IN
the/DT
sale/NN
of/IN
art/NN
from/IN
the/DT
estate/NN
of/IN
John/NNP
T./NNP
Dorrance/NNP
Jr./NNP
,/,
the/DT
Campbell/NNP
Soup/NNP
Co./NNP
heir/NN
./.
The/DT
Financial/NNP
Services/NNP
division/NN
has/VBZ
guaranteed/VBN
the/DT
Dorrance/NNP
family/NN
that/IN
it/PRP
will/MD
receive/VB
a/DT
minimum/NN
of/IN
$/$
100/CD
million/CD
for/IN
the/DT
collection/NN
,/,
regardless/RB
of/IN
what/WP
the/DT
bids/NNS
for/IN
the/DT
art/NN
works/NNS
total/VBP
,/,
people/NNS
close/RB
to/TO
the/DT
transaction/NN
say/VBP
./.
The/DT
collection/NN
,/,
which/WDT
includes/VBZ
two/CD
early/JJ
Picassos/NNPS
,/,
a/DT
van/NNP
Gogh/NNP
,/,
a/DT
Monet/NNP
,/,
other/JJ
paintings/NNS
,/,
furniture/NN
and/CC
porcelains/NNS
,/,
went/VBD
on/IN
sale/NN
last/JJ
night/NN
in/IN
the/DT
first/JJ
of/IN
six/CD
auctions/NNS
./.
What/WP
Sotheby/NNP
's/POS
is/VBZ
doing/VBG
closely/RB
resembles/VBZ
an/DT
underwriting/NN
by/IN
an/DT
investment/NN
bank/NN
./.
A/DT
corporation/NN
that/WDT
wants/VBZ
to/TO
sell/VB
stock/NN
or/CC
bonds/NNS
goes/VBZ
to/TO
a/DT
Wall/NNP
Street/NNP
firm/NN
,/,
which/WDT
purchases/VBZ
the/DT
securities/NNS
outright/RB
,/,
accepting/VBG
the/DT
financial/JJ
risk/NN
of/IN
finding/VBG
buyers/NNS
./.
If/IN
the/DT
investment/NN
bank/NN
can/MD
sell/VB
the/DT
securities/NNS
at/IN
a/DT
higher/JJR
price/NN
than/IN
it/PRP
paid/VBD
the/DT
issuer/NN
,/,
it/PRP
makes/VBZ
a/DT
profit/NN
./.
At/IN
the/DT
initial/JJ
sale/NN
last/JJ
night/NN
,/,
for/IN
example/NN
--/:
the/DT
sale/NN
featuring/VBG
the/DT
Impressionists/NNPS
masters/NNS
--/:
bids/NNS
totaled/VBD
$/$
116/CD
million/CD
./.
That/DT
was/VBD
slightly/RB
above/IN
Sotheby/NNP
's/POS
presale/JJ
estimate/NN
of/IN
$/$
111/CD
million/CD
./.
Normally/NNP
,/,
Sotheby/NNP
's/POS
would/MD
have/VB
earned/VBN
20/CD
%/NN
of/IN
the/DT
total/NN
in/IN
commissions/NNS
./.
Instead/RB
,/,
people/NNS
familiar/JJ
with/IN
the/DT
transaction/NN
said/VBD
,/,
the/DT
auction/NN
house/NN
opted/VBD
to/TO
forgo/VB
that/DT
percentage/NN
in/IN
order/NN
to/TO
obtain/VB
the/DT
collection/NN
and/CC
in/IN
exchange/NN
for/IN
taking/VBG
a/DT
bigger/JJR
chunk/NN
of/IN
proceeds/NNS
exceeding/VBG
$/$
100/CD
million/CD
./.
Art/NN
dealers/NNS
say/VBP
that/IN
while/IN
auction/NN
houses/NNS
occasionally/RB
guarantee/VBP
the/DT
seller/NN
of/IN
a/DT
highly/RB
desirable/JJ
work/NN
of/IN
art/NN
a/DT
minimum/JJ
price/NN
,/,
a/DT
financial/JJ
commitment/NN
of/IN
this/DT
size/NN
is/VBZ
unprecedented/JJ
./.
Diana/NNP
D./NNP
Brooks/NNP
,/,
president/NN
of/IN
Sotheby/NNP
's/POS
North/NNP
America/NNP
division/NN
,/,
vehemently/RB
denies/VBZ
it/PRP
offered/VBD
the/DT
Dorrance/NNP
heirs/NNS
a/DT
money-back/JJ
guarantee/NN
,/,
calling/VBG
such/JJ
reports/NNS
``/``
inaccurate/JJ
./.
''/''
Buried/VBN
in/IN
the/DT
glossy/JJ
hardbound/JJ
catalog/NN
for/IN
the/DT
sale/NN
,/,
however/RB
,/,
appears/VBZ
the/DT
statement/NN
,/,
``/``
Sotheby/NNP
's/POS
has/VBZ
an/DT
interest/NN
in/IN
the/DT
property/NN
in/IN
this/DT
catalog/NN
./.
''/''
Explains/VBZ
a/DT
Sotheby/NNP
's/POS
spokeswoman/NN
,/,
the/DT
statement/NN
``/``
means/VBZ
exactly/RB
what/WP
it/PRP
says/VBZ
./.
We/PRP
have/VBN
some/DT
level/NN
of/IN
financial/JJ
interest/NN
''/''
in/IN
the/DT
collection/NN
./.
``/``
We/PRP
do/VBP
n't/RB
disclose/VB
specifics/NNS
./.
''/''
Frank/NNP
Mirabello/NNP
,/,
a/DT
lawyer/NN
for/IN
the/DT
Dorrance/NNP
estate/NN
with/IN
the/DT
Philadelphia/NNP
law/NN
firm/NN
of/IN
Morgan/NNP
,/,
Lewis/NNP
&/CC
Bockius/NNP
,/,
declines/VBZ
to/TO
comment/VB
on/IN
the/DT
financial/JJ
arrangements/NNS
./.
Sotheby/NNP
's/VBZ
made/VBN
the/DT
$/$
100/CD
million/CD
guarantee/NN
to/TO
keep/VB
the/DT
Dorrance/NNP
collection/NN
away/RB
from/IN
its/PRP$
archrival/JJ
,/,
auction/NN
house/NN
Christie/NNP
's/POS
International/NNP
PLC/NNP
;/:
Christie/NNP
's/POS
has/VBZ
handled/VBN
smaller/JJR
sales/NNS
for/IN
the/DT
Dorrance/NNP
family/NN
over/IN
the/DT
years/NNS
./.
When/WRB
Christie/NNP
's/POS
officials/NNS
asked/VBD
why/WRB
the/DT
firm/JJ
was/VBD
n't/RB
picked/VBN
to/TO
sell/VB
the/DT
Dorrance/NNP
collection/NN
,/,
representatives/NNS
of/IN
the/DT
Dorrance/NNP
family/NN
``/``
told/VBD
us/PRP
it/PRP
was/VBD
a/DT
question/NN
of/IN
financial/JJ
considerations/NNS
,/,
''/''
said/VBD
Michael/NNP
Findlay/NNP
,/,
Christie/NNP
's/POS
head/NN
of/IN
impressionist/JJ
and/CC
modern/JJ
paintings/NNS
./.
Collectors/NNS
who/WP
have/VBP
made/VBN
their/PRP$
money/NN
on/IN
Wall/NNP
Street/NNP
have/VBP
become/VBN
an/DT
increasingly/RB
important/JJ
part/NN
of/IN
the/DT
art/NN
business/NN
and/CC
their/PRP$
money/NN
has/VBZ
helped/VBN
fuel/VB
the/DT
art/NN
boom/NN
,/,
but/CC
recently/RB
it/PRP
appears/VBZ
Sotheby/NNP
's/POS
has/VBZ
been/VBN
returning/VBG
the/DT
compliment/NN
./.
In/IN
November/NNP
1987/CD
,/,
Sotheby/NNP
's/POS
essentially/RB
offered/VBD
a/DT
Wall/NNP
Street-style/JJ
``/``
bridge/NN
loan/NN
''/''
of/IN
about/RB
$/$
27/CD
million/CD
to/TO
Australian/JJ
businessman/NN
Alan/NNP
Bond/NNP
to/TO
enable/VB
him/PRP
to/TO
purchase/VB
Vincent/NNP
van/NNP
Gogh/NNP
's/POS
``/``
Irises/NNS
''/''
for/IN
$/$
53.9/CD
million/CD
./.
It/PRP
was/VBD
the/DT
highest/JJS
bid/NN
in/IN
history/NN
for/IN
a/DT
work/NN
of/IN
art/NN
./.
But/CC
two/CD
weeks/NNS
ago/RB
,/,
Sotheby/NNP
's/VBZ
said/VBD
that/IN
it/PRP
has/VBZ
the/DT
painting/NN
under/IN
lock/NN
and/CC
key/NN
because/IN
the/DT
loan/NN
had/VBD
not/RB
been/VBN
fully/RB
repaid/VBN
./.
Sotheby/NNP
's/POS
is/VBZ
offering/VBG
such/JJ
deals/NNS
because/IN
it/PRP
's/VBZ
an/DT
art/NN
sellers/NNS
'/POS
market/NN
,/,
at/IN
least/JJS
where/WRB
the/DT
best/JJS
works/NNS
are/VBP
concerned/VBN
,/,
says/VBZ
Ralph/NNP
Lerner/NNP
,/,
an/DT
attorney/NN
and/CC
author/NN
of/IN
the/DT
book/NN
``/``
Art/NN
Law/NN
./.
''/''
``/``
There/EX
seems/VBZ
to/TO
be/VB
a/DT
lot/NN
of/IN
art/NN
for/IN
sale/NN
,/,
but/CC
there/EX
's/POS
more/JJR
competition/NN
./.
The/DT
competition/NN
gives/VBZ
the/DT
seller/NN
the/DT
ability/NN
to/TO
cut/VB
a/DT
better/JJR
deal/NN
,/,
''/''
he/PRP
says/VBZ
./.
The/DT
Dorrance/NNP
family/NN
will/MD
still/RB
receive/VB
a/DT
substantial/JJ
portion/NN
of/IN
the/DT
auction/NN
proceeds/NNS
above/IN
$/$
100/CD
million/CD
,/,
people/NNS
familiar/JJ
with/IN
the/DT
transaction/NN
said/VBD
./.
But/CC
it/PRP
's/VBZ
likely/RB
that/DT
Sotheby/NNP
's/POS
will/MD
take/VB
a/DT
higher/JJR
than/IN
usual/JJ
commission/NN
,/,
called/VBD
an/DT
override/NN
,/,
on/IN
the/DT
amount/NN
exceeding/VBG
the/DT
guarantee/NN
./.
Sotheby/NNP
's/POS
has/VBZ
been/VBN
aggressively/RB
promoting/VBG
the/DT
Dorrance/NNP
sale/NN
./.
At/IN
a/DT
news/NN
conference/NN
last/JJ
May/NNP
announcing/VBG
plans/NNS
for/IN
the/DT
auction/NN
,/,
Sotheby/NNP
's/POS
estimated/VBD
its/PRP$
value/NN
in/IN
excess/NN
of/IN
$/$
100/CD
million/CD
./.
More/RBR
recently/RB
,/,
Sotheby/NNP
's/POS
has/VBZ
predicted/VBN
the/DT
collection/NN
will/MD
fetch/VB
$/$
140/CD
million/CD
./.
That/DT
's/VBZ
the/DT
highest/JJS
estimate/NN
for/IN
a/DT
single/JJ
collection/NN
in/IN
auction/NN
history/NN
./.
The/DT
decision/NN
to/TO
put/VB
the/DT
entire/JJ
collection/NN
on/IN
the/DT
block/NN
stunned/VBD
many/JJ
,/,
since/IN
Mr./NNP
Dorrance/NNP
had/VBD
served/VBN
as/IN
chairman/NN
of/IN
the/DT
Philadelphia/NNP
Museum/NNP
of/IN
Art/NNP
,/,
and/CC
it/PRP
had/VBD
been/VBN
assumed/VBN
many/JJ
of/IN
the/DT
works/NNS
would/MD
be/VB
donated/VBN
to/TO
the/DT
institution/NN
./.
At/IN
last/JJ
night/NN
's/POS
sale/NN
,/,
13/CD
of/IN
44/CD
works/NNS
that/WDT
sold/VBD
were/VBD
purchased/VBN
by/IN
Aska/NNP
International/NNP
Gallery/NNP
,/,
the/DT
art-acquisition/JJ
unit/NN
of/IN
Aichi/NNP
Financial/NNP
,/,
a/DT
Japanese/JJ
conglomerate/NN
that/WDT
owns/VBZ
7.5/CD
%/NN
of/IN
Christie/NN
's/POS
./.
Meanwhile/RB
,/,
Sotheby/NNP
's/POS
guarantee/NN
is/VBZ
raising/VBG
eyebrows/NNS
in/IN
the/DT
art/NN
world/NN
./.
``/``
The/DT
consumer/NN
has/VBZ
to/TO
throw/VB
out/RP
the/DT
idea/NN
that/IN
the/DT
auction/NN
house/NN
is/VBZ
a/DT
disinterested/JJ
middleman/NN
,/,
''/''
says/VBZ
New/NNP
York/NNP
art/NN
dealer/NN
David/NNP
Tunick/NNP
./.
While/IN
he/PRP
adds/VBZ
that/IN
he/PRP
has/VBZ
no/DT
problem/NN
with/IN
auction/NN
houses/NNS
who/WP
sell/VBP
works/NNS
in/IN
which/WDT
they/PRP
have/VBP
a/DT
financial/JJ
interest/NN
,/,
``/``
It/PRP
ought/MD
not/RB
to/TO
be/VB
hidden/VBN
in/IN
some/DT
small/JJ
print/NN
./.
''/''
In/IN
such/JJ
situations/NNS
,/,
he/PRP
says/VBZ
,/,
the/DT
house/NN
``/``
is/VBZ
going/VBG
to/TO
put/VB
the/DT
best/JJS
light/NN
on/IN
things/NNS
./.
''/''
For/IN
example/NN
,/,
an/DT
auction/NN
house/NN
's/POS
comments/NNS
on/IN
the/DT
condition/NN
of/IN
a/DT
work/NN
of/IN
art/NN
that/WDT
is/VBZ
up/RB
for/IN
sale/NN
should/MD
be/VB
looked/VBN
at/IN
with/IN
``/``
very/RB
open/JJ
eyes/NNS
,/,
''/''
he/PRP
says/VBZ
./.
``/``
There/EX
's/VBZ
more/JJR
and/CC
more/JJR
of/IN
this/DT
cash-up-front/NN
going/VBG
on/RP
at/IN
every/DT
level/NN
,/,
''/''
says/VBZ
Bruce/NNP
Miller/NNP
,/,
president/NN
of/IN
Art/NNP
Funding/NNP
Corp./NNP
,/,
an/DT
art/NN
lender/NN
./.
Dealers/NNS
and/CC
auction/NN
houses/NNS
``/``
know/VBP
if/IN
they/PRP
do/VBP
n't/RB
lay/VB
out/RP
a/DT
half/PDT
a/DT
million/CD
for/IN
this/DT
,/,
another/DT
one/NN
will/MD
;/:
it/PRP
's/VBZ
that/RB
competitive/JJ
./.
''/''
In/IN
January/NNP
,/,
two/CD
small/JJ
New/NNP
York/NNP
galleries/NNS
,/,
the/DT
Coe/NNP
Kerr/NNP
Gallery/NNP
and/CC
Beadleston/NNP
Fine/NNP
Arts/NNP
,/,
snatched/VBD
a/DT
major/JJ
art/NN
collection/NN
owned/VBN
by/IN
the/DT
Askin/NNP
family/NN
away/RB
from/IN
rival/JJ
auction-house/NN
bidders/NNS
with/IN
an/DT
up-front/JJ
payment/NN
of/IN
about/RB
$/$
25/CD
million/CD
./.
A/DT
Christie/NNP
's/POS
spokeswoman/NN
said/VBD
that/IN
while/IN
the/DT
auction/NN
house/NN
sometimes/RB
waives/VBZ
its/PRP$
seller/NN
's/POS
commission/NN
to/TO
attract/VB
art/NN
works/NNS
--/:
it/PRP
still/RB
gets/VBZ
a/DT
commission/NN
from/IN
the/DT
buyer/NN
--/:
Christie/NNP
's/POS
wo/MD
n't/RB
offer/VB
financial/JJ
guarantees/NNS
because/IN
``/``
Christie/NNP
's/POS
believes/VBZ
its/PRP$
primary/JJ
role/NN
is/VBZ
as/IN
an/DT
auction/NN
house/NN
,/,
and/CC
therefore/RB
as/IN
an/DT
agent/NN
buyer/NN
and/CC
seller/NN
a/DT
bank/NN
./.
''/''
Egon/NNP
Krenz/NNP
,/,
the/DT
man/NN
tapped/VBN
yesterday/NN
to/TO
become/VB
East/NNP
Germany/NNP
's/POS
new/JJ
leader/NN
,/,
faces/VBZ
the/DT
same/JJ
task/NN
that/WDT
has/VBZ
fallen/VBN
to/TO
neighboring/VBG
socialist/JJ
colleagues/NNS
:/:
reforming/VBG
a/DT
country/NN
in/IN
crisis/NN
./.
But/CC
unlike/IN
the/DT
other/JJ
new/JJ
leaders/NNS
in/IN
the/DT
East/NNP
Bloc/NNP
,/,
Mr./NNP
Krenz/NNP
will/MD
face/VB
an/DT
immediate/JJ
threat/NN
to/TO
his/PRP$
nation/NN
's/POS
very/JJ
existence/NN
:/:
German/JJ
reunification/NN
./.
Mr./NNP
Krenz/NNP
,/,
age/NN
52/CD
,/,
is/VBZ
known/VBN
as/IN
an/DT
old-guard/JJ
ironfist/NN
,/,
one/NN
likely/JJ
to/TO
continue/VB
the/DT
method/NN
of/IN
running/VBG
a/DT
country/NN
that/WDT
the/DT
Berlin/NNP
Wall/NNP
made/VBD
famous/JJ
./.
Even/RB
if/IN
he/PRP
were/VBD
to/TO
change/VB
his/PRP$
stripes/NNS
and/CC
become/VB
another/DT
Milton/NNP
Friedman/NNP
,/,
however/RB
,/,
he/PRP
would/MD
still/RB
stand/VB
a/DT
good/JJ
chance/NN
of/IN
losing/VBG
a/DT
country/NN
./.
Mr./NNP
Krenz/NNP
almost/RB
certainly/RB
will/MD
be/VB
a/DT
younger/JJR
version/NN
of/IN
Erich/NNP
Honecker/NNP
,/,
his/PRP$
rigid/JJ
predecessor/NN
as/IN
dictator/NN
./.
Mr./NNP
Krenz/NNP
has/VBZ
followed/VBN
much/RB
the/DT
same/JJ
career/NN
path/NN
as/IN
Mr./NNP
Honecker/NNP
:/:
Both/DT
spent/VBD
years/NNS
overseeing/VBG
the/DT
Freie/NNP
Deutsche/NNP
Jugend/NNP
,/,
the/DT
youth/NN
group/NN
that/WDT
is/VBZ
the/DT
communist/JJ
regime/NN
's/POS
principal/JJ
tool/NN
for/IN
stamping/VBG
young/JJ
Germans/NNPS
into/IN
socialist/JJ
citizens/NNS
./.
More/RBR
recently/RB
,/,
Mr./NNP
Krenz/NNP
has/VBZ
been/VBN
in/IN
charge/NN
of/IN
East/JJ
German/JJ
security/NN
,/,
and/CC
is/VBZ
the/DT
youngest/JJS
member/NN
of/IN
the/DT
ruling/VBG
Politburo/NNP
./.
Faced/VBN
with/IN
another/DT
Mr./NNP
Honecker/NNP
,/,
so/RB
many/JJ
despairing/JJ
East/NNP
Germans/NNPS
are/VBP
likely/JJ
to/TO
flee/VB
that/IN
the/DT
two/CD
German/JJ
peoples/NNS
will/MD
get/VB
their/PRP$
reunification/NN
,/,
de/FW
facto/FW
,/,
on/IN
West/JJ
German/JJ
ground/NN
./.
But/CC
if/IN
East/NNP
Germany/NNP
's/POS
arthritic/JJ
Politburo/NNP
does/VBZ
loosen/VB
up/RP
enough/RB
to/TO
permit/VB
Mr./NNP
Krenz/NNP
to/TO
make/VB
serious/JJ
efforts/NNS
at/IN
reform/NN
,/,
he/PRP
will/MD
face/VB
a/DT
challenge/NN
just/RB
as/IN
fundamental/JJ
./.
Abandoning/VBG
socialism/NN
means/NNS
abandoning/VBG
the/DT
East/JJ
German/JJ
state/NN
's/POS
reason/NN
for/IN
existence/NN
,/,
and/CC
with/IN
it/PRP
the/DT
justification/NN
for/IN
its/PRP$
watchdogs/NNS
and/CC
its/PRP$
Wall/NNP
./.
In/IN
this/DT
scenario/NN
it/PRP
's/VBZ
hard/JJ
to/TO
imagine/VB
that/IN
a/DT
pale/JJ
imitation/NN
of/IN
the/DT
Federal/NNP
Republic/NNP
could/MD
avoid/VB
being/VBG
pulled/VBD
into/IN
some/DT
kind/NN
of/IN
tie/NN
--/:
economic/JJ
,/,
federal/JJ
or/CC
stronger/JJR
--/:
with/IN
West/NNP
Germany/NNP
./.
Mr./NNP
Krenz/NNP
may/MD
need/VB
a/DT
bit/NN
of/IN
time/NN
to/TO
consolidate/VB
his/PRP$
empire/NN
,/,
which/WDT
would/MD
do/VB
a/DT
lot/NN
to/TO
promote/VB
Reunification/NNP
Scenario/NNP
One/CD
./.
Cartoonists/NNP
in/IN
West/NNP
Germany/NNP
have/VBP
already/RB
mocked/VBN
the/DT
exodus/NN
by/IN
imagining/VBG
an/DT
advertisement/NN
placed/VBN
by/IN
Mr./NNP
Honecker/NNP
:/:
``/``
Wanted/VBN
:/:
one/CD
people/NN
./.
''/''
The/DT
West/JJ
German/JJ
embassies/NNS
in/IN
Prague/NNP
,/,
Budapest/NNP
and/CC
Warsaw/NNP
are/VBP
continuing/VBG
to/TO
find/VB
refugees/NNS
at/IN
their/PRP$
gates/NNS
./.
Of/IN
course/NN
East/NNP
Germany/NNP
,/,
true/JJ
to/TO
its/PRP$
tradition/NN
,/,
could/MD
tighten/VB
its/PRP$
borders/NNS
yet/CC
further/RBR
./.
Two/CD
of/IN
the/DT
last/JJ
gestures/NNS
of/IN
the/DT
Honecker/NNP
regime/NN
were/VBD
to/TO
close/VB
the/DT
border/NN
to/TO
Czechoslovakia/NNP
and/CC
install/VB
halogen/NN
lights/NNS
in/IN
some/DT
spots/NNS
along/IN
the/DT
frontier/NN
./.
But/CC
with/IN
world-wide/JJ
opinion/NN
--/:
even/RB
,/,
apparently/RB
in/IN
Moscow/NNP
--/:
against/IN
East/NNP
Germany/NNP
,/,
the/DT
country/NN
would/MD
have/VB
to/TO
turn/VB
itself/PRP
into/IN
an/DT
Albania/NNP
to/TO
clamp/VB
down/RP
further/RB
on/IN
refugees/NNS
./.
There/EX
have/VBP
been/VBN
some/DT
reports/NNS
that/IN
Mr./NNP
Krenz/NNP
is/VBZ
moving/VBG
to/TO
``/``
soften/VB
''/''
his/PRP$
reputation/NN
,/,
notably/RB
rumors/VBZ
that/IN
it/PRP
was/VBD
he/PRP
who/WP
kept/VBD
East/NNP
Germany/NNP
's/POS
state/NN
police/NN
off/IN
protesters/NNS
'/POS
backs/NNS
at/IN
the/DT
country/NN
's/POS
dismal/JJ
40th/JJ
anniversary/NN
celebrations/NNS
earlier/RBR
this/DT
month/NN
./.
But/CC
even/RB
if/IN
he/PRP
effects/VBZ
a/DT
Hyde-to-Jekyll/JJ
transformation/NN
,/,
he/PRP
will/MD
face/VB
a/DT
serious/JJ
ideological/JJ
crisis/NN
and/CC
Reunification/NNP
Scenario/NNP
Two/CD
./.
The/DT
problem/NN
is/VBZ
one/NN
that/IN
East/NNP
Germany/NNP
shares/NNS
with/IN
other/JJ
half-states/NNS
,/,
such/JJ
as/IN
North/NNP
Korea/NNP
,/,
but/CC
one/NN
it/PRP
must/MD
shoulder/VB
alone/RB
in/IN
the/DT
East/NNP
Bloc/NNP
./.
When/WRB
Poland/NNP
moves/VBZ
to/TO
reform/VB
,/,
it/PRP
can/MD
at/IN
least/JJS
lean/VB
on/IN
its/PRP$
past/NN
:/:
However/RB
flawed/JJ
and/CC
short-lived/JJ
Joseph/NNP
Pilsudski/NNP
's/POS
interwar/JJ
republic/NN
,/,
it/PRP
was/VBD
a/DT
nonsocialist/JJ
democracy/NN
./.
Czech/JJ
reformers/NNS
can/MD
recall/VB
the/DT
Wilsonian/JJ
ideals/NNS
of/IN
the/DT
same/JJ
period/NN
in/IN
their/PRP$
country/NN
./.
Even/RB
the/DT
Soviet/NNP
Union/NNP
has/VBZ
Peter/NNP
the/DT
Great/NNP
to/TO
rediscover/VB
,/,
should/MD
it/PRP
choose/VB
to/TO
./.
But/CC
East/NNP
Germany/NNP
is/VBZ
merely/RB
``/``
the/DT
land/NN
of/IN
truly/RB
existing/VBG
socialism/NN
./.
''/''
Beyond/IN
that/DT
,/,
it/PRP
has/VBZ
to/TO
compete/VB
with/IN
West/NNP
Germany/NNP
for/IN
a/DT
claim/NN
to/TO
the/DT
German/JJ
identity/NN
./.
Up/IN
to/TO
now/RB
,/,
the/DT
main/JJ
weapon/NN
of/IN
the/DT
``/``
worker/NN
and/CC
peasant/NN
state/NN
''/''
has/VBZ
been/VBN
the/DT
ideology/NN
of/IN
socialism/NN
./.
With/IN
talk/NN
today/NN
of/IN
a/DT
second/JJ
economic/JJ
miracle/NN
in/IN
West/NNP
Germany/NNP
,/,
East/NNP
Germany/NNP
no/RB
longer/RBR
can/MD
content/VB
itself/PRP
with/IN
being/VBG
the/DT
economic/JJ
star/NN
in/IN
a/DT
loser/JJ
league/NN
./.
Without/IN
Moscow/NNP
's/POS
military/NN
and/CC
party/NN
behind/IN
it/PRP
,/,
East/NNP
Germany/NNP
runs/VBZ
the/DT
risk/NN
of/IN
disintegrating/VBG
./.
If/IN
it/PRP
goes/VBZ
capitalist/JJ
,/,
and/CC
increases/VBZ
trade/NN
with/IN
West/NNP
Germany/NNP
,/,
it/PRP
will/MD
convert/VB
itself/PRP
,/,
willy-nilly/RB
,/,
into/IN
an/DT
economic/JJ
annex/NN
of/IN
the/DT
Federal/NNP
Republic/NNP
./.
There/EX
's/VBZ
a/DT
certain/JJ
cruel/JJ
logic/NN
at/IN
work/NN
here/RB
:/:
It/PRP
's/VBZ
particularly/RB
appropriate/JJ
--/:
and/CC
tragic/JJ
--/:
that/IN
the/DT
land/NN
that/WDT
produced/VBD
Karl/NNP
Marx/NNP
should/MD
prove/VB
socialism/NN
's/POS
failure/NN
in/IN
an/DT
experiment/NN
that/WDT
uses/VBZ
its/PRP$
own/JJ
people/NNS
as/IN
controls/NNS
./.
There/EX
may/MD
be/VB
forces/NNS
that/WDT
would/MD
delay/VB
this/DT
scenario/NN
./.
Ideologues/NNS
are/VBP
the/DT
last/JJ
to/TO
surrender/VB
,/,
and/CC
Germans/NNPS
are/VBP
an/DT
ideological/JJ
people/NNS
./.
The/DT
protesters/NNS
who/WP
greeted/VBD
Mikhail/NNP
Gorbachev/NNP
at/IN
East/NNP
Berlin/NNP
's/POS
airport/NN
earlier/RBR
this/DT
month/NN
were/VBD
n't/RB
shouting/VBG
``/``
Go/VB
U.S.A/NNP
''/''
--/:
they/PRP
were/VBD
chanting/VBG
``/``
Gorby/NNP
,/,
Help/VB
Us/PRP
./.
''/''
Ideologues/NNS
on/IN
the/DT
other/JJ
side/NN
of/IN
the/DT
border/NN
can/MD
also/RB
slow/VB
the/DT
process/NN
./.
Helmut/NNP
Kohl/NNP
's/VBZ
governing/VBG
conservative/JJ
coalition/NN
is/VBZ
proving/VBG
admirably/RB
true/JJ
to/TO
the/DT
West/JJ
German/JJ
constitution/NN
by/IN
making/VBG
more/JJR
than/IN
500,000/CD
people/NNS
of/IN
German/JJ
descent/NN
automatic/JJ
citizens/NNS
this/DT
year/NN
alone/RB
./.
But/CC
within/IN
the/DT
government/NN
and/CC
in/IN
the/DT
think/VB
tanks/NNS
outside/IN
it/PRP
,/,
many/JJ
West/NNP
Germans/NNPS
maintain/VBP
that/IN
they/PRP
do/VBP
n't/RB
want/VB
immediate/JJ
reunification/NN
./.
Politically/RB
,/,
this/DT
currently/RB
is/VBZ
wisdom/NN
--/:
particularly/RB
given/VBN
a/DT
nervous/JJ
neighboring/JJ
France/NNP
./.
But/CC
it/PRP
would/MD
be/VB
ironic/JJ
if/IN
Germany/NNP
's/POS
reunification/NN
,/,
just/RB
like/IN
its/PRP$
division/NN
,/,
eventually/RB
were/VBD
the/DT
result/NN
of/IN
actions/NNS
in/IN
centers/NNS
of/IN
power/NN
other/JJ
than/IN
Bonn/NNP
and/CC
Berlin/NNP
./.
In/IN
a/DT
statement/NN
that/WDT
was/VBD
as/RB
close/JJ
as/IN
East/NNP
Germany/NNP
gets/VBZ
to/TO
practicing/VBG
``/``
glasnost/NN
''/''
,/,
Otto/NNP
Reinhold/NNP
,/,
an/DT
East/JJ
German/JJ
party/NN
theorist/NN
,/,
actually/RB
acknowledged/VBD
the/DT
reunification/NN
dilemma/NN
./.
``/``
The/DT
main/JJ
problem/NN
,/,
''/''
Mr./NNP
Reinhold/NNP
said/VBD
in/IN
an/DT
East/JJ
German/JJ
radio/NN
interview/NN
monitored/VBN
by/IN
Radio/NNP
Free/NNP
Europe/NNP
in/IN
Munich/NNP
,/,
stems/VBZ
from/IN
the/DT
fact/NN
that/IN
``/``
the/DT
GDR/NNP
is/VBZ
different/JJ
''/''
from/IN
other/JJ
East/JJ
European/JJ
states/NNS
./.
``/``
What/WDT
kind/NN
of/IN
right/NN
to/TO
exist/VB
,/,
''/''
he/PRP
asked/VBD
,/,
``/``
would/MD
a/DT
capitalist/JJ
German/NNP
Democratic/NNP
Republic/NNP
have/VBP
alongside/IN
a/DT
capitalist/JJ
Federal/NNP
Republic/NNP
?/.
''/''
That/DT
's/VBZ
a/DT
question/NN
East/NNP
Germany/NNP
ca/MD
n't/RB
answer/VB
easily/RB
,/,
no/DT
matter/NN
what/WP
its/PRP$
new/JJ
leader/NN
does/VBZ
./.
Miss/NNP
Shlaes/NNP
is/VBZ
editorial/JJ
features/NNS
editor/NN
of/IN
The/DT
Wall/NNP
Street/NNP
Journal\/Europe/NNP
./.
INSURERS/NNS
ARE/VBP
FACING/VBG
billions/NNS
of/IN
dollars/NNS
in/IN
damage/NN
claims/NNS
from/IN
the/DT
California/NNP
quake/NN
./.
But/CC
most/JJS
businesses/NNS
in/IN
the/DT
Bay/NNP
area/NN
,/,
including/VBG
Silicon/NNP
Valley/NNP
,/,
were/VBD
n't/RB
greatly/RB
affected/VBN
./.
Computer/NN
and/CC
software/NN
companies/NNS
in/IN
the/DT
region/NN
are/VBP
expecting/VBG
virtually/RB
no/DT
long-term/JJ
disruption/NN
in/IN
shipments/NNS
./.
Also/RB
,/,
investors/NNS
quickly/RB
singled/VBD
out/RP
stocks/NNS
of/IN
companies/NNS
expected/VBN
to/TO
profit/VB
or/CC
suffer/VB
from/IN
the/DT
disaster/NN
./.
Leveraged/JJ
buy-outs/NNS
may/MD
be/VB
curbed/VBN
by/IN
two/CD
rules/NNS
in/IN
pending/VBG|JJ
congressional/JJ
legislation/NN
./.
The/DT
provisions/NNS
,/,
in/IN
deficit-reduction/JJ
bills/NNS
recently/RB
passed/VBN
by/IN
the/DT
House/NNP
and/CC
Senate/NNP
,/,
could/MD
raise/VB
the/DT
price/NN
tags/NNS
of/IN
such/JJ
deals/NNS
by/IN
up/IN
to/TO
10/CD
%/NN
and/CC
cool/VB
the/DT
takeover/NN
boom/NN
./.
A/DT
bill/NN
giving/VBG
the/DT
Transportation/NNP
Department/NNP
the/DT
power/NN
to/TO
block/VB
airline/NN
leveraged/JJ
buy-outs/NNS
cleared/VBD
a/DT
House/NN
panel/NN
./.
But/CC
Secretary/NNP
Skinner/NNP
said/VBD
he/PRP
would/MD
urge/VB
Bush/NNP
to/TO
veto/VB
the/DT
bill/NN
./.
Housing/NN
starts/NNS
sank/VBD
5.2/CD
%/NN
in/IN
September/NNP
to/TO
a/DT
seven-year/JJ
low/JJ
./.
The/DT
drop/NN
,/,
following/VBG
a/DT
6.2/CD
%/NN
decline/NN
in/IN
August/NNP
,/,
indicates/VBZ
the/DT
industry/NN
is/VBZ
still/RB
being/VBG
hurt/VBN
by/IN
the/DT
Fed/NNP
's/POS
anti-inflation/JJ
battle/NN
./.
IBM/NNP
plans/VBZ
to/TO
buy/VB
back/RP
$/$
1/CD
billion/CD
of/IN
its/PRP$
common/JJ
shares/NNS
,/,
a/DT
move/NN
likely/RB
to/TO
help/VB
the/DT
computer/NN
giant/NN
's/POS
battered/JJ
stock/NN
./.
The/DT
buy-back/NN
,/,
which/WDT
was/VBD
n't/RB
a/DT
complete/JJ
surprise/NN
,/,
was/VBD
announced/VBN
after/IN
the/DT
stock/NN
market/NN
had/VBD
closed/VBN
./.
A/DT
capital-gains/NNS
tax/NN
cut/NN
plan/NN
has/VBZ
been/VBN
worked/VBN
out/RP
by/IN
Senate/NNP
Republicans/NNPS
./.
A/DT
similar/JJ
proposal/NN
may/MD
be/VB
introduced/VBN
soon/RB
by/IN
Senate/NNP
Democrats/NNPS
./.
British/NNP
Airways/NNP
said/VBD
it/PRP
is/VBZ
seeking/VBG
improved/JJ
terms/NNS
and/CC
a/DT
sharply/RB
lower/JJR
price/NN
in/IN
any/DT
revised/VBN
bid/NN
for/IN
United/NNP
Air/NNP
's/POS
parent/NN
./.
The/DT
British/JJ
carrier/NN
also/RB
confirmed/VBD
it/PRP
is/VBZ
n't/RB
committed/VBN
to/TO
going/VBG
forward/RB
with/IN
any/DT
new/JJ
bid/NN
./.
UAL/NNP
's/POS
stock/NN
fell/VBD
$/$
6.25/CD
,/,
to/TO
$/$
191.75/CD
./.
Stock/NN
prices/NNS
rose/VBD
slightly/RB
as/IN
trading/NN
slowed/VBD
,/,
while/IN
bonds/NNS
ended/VBD
little/RB
changed/VBN
despite/IN
a/DT
slumping/VBG
dollar/NN
./.
The/DT
Dow/NNP
Jones/NNP
industrials/NNS
gained/VBD
4.92/CD
,/,
to/TO
2643.65/CD
./.
But/CC
investors/NNS
remain/VBP
wary/JJ
about/IN
stocks/NNS
,/,
partly/RB
because/IN
of/IN
turmoil/NN
in/IN
the/DT
junk-bond/NN
market/NN
./.
B.A.T/NNP
Industries/NNP
may/MD
delay/VB
part/NN
of/IN
its/PRP$
defensive/JJ
restructuring/NN
plan/NN
,/,
including/VBG
the/DT
sale/NN
of/IN
its/PRP$
Saks/NNP
Fifth/NNP
Avenue/NNP
and/CC
Marshall/NNP
Field/NNP
units/NNS
./.
The/DT
British/JJ
conglomerate/NN
cited/VBD
the/DT
recent/JJ
turmoil/NN
in/IN
financial/JJ
markets/NNS
./.
WCRS/NNP
Group/NNP
announced/VBD
a/DT
major/JJ
restructuring/NN
that/WDT
largely/RB
removes/VBZ
it/PRP
from/IN
the/DT
advertising/NN
business/NN
./.
The/DT
London-based/JJ
concern/NN
will/MD
sell/VB
most/JJS
of/IN
its/PRP$
ad/NN
unit/NN
to/TO
France/NNP
's/POS
Eurocom/NNP
./.
Commodore/NNP
International/NNP
expects/VBZ
to/TO
post/VB
its/PRP$
second/JJ
consecutive/JJ
quarterly/JJ
loss/NN
because/IN
of/IN
weak/JJ
personal/JJ
computer/NN
sales/NNS
in/IN
some/DT
markets/NNS
./.
Jaguar/NNP
hopes/VBZ
to/TO
reach/VB
a/DT
friendly/JJ
accord/NN
with/IN
General/NNP
Motors/NNP
within/IN
a/DT
month/NN
that/WDT
may/MD
involve/VB
producing/VBG
a/DT
cheaper/JJR
executive/JJ
model/NN
./.
Sears/NNP
is/VBZ
negotiating/VBG
to/TO
refinance/VB
its/PRP$
Sears/NNP
Tower/NNP
for/IN
close/RB
to/TO
$/$
850/CD
million/CD
,/,
sources/NNS
said/VBD
./.
The/DT
retailer/NN
was/VBD
unable/JJ
to/TO
find/VB
a/DT
buyer/NN
for/IN
the/DT
building/NN
./.
Whitbread/NNP
of/IN
Britain/NNP
put/VBD
its/PRP$
spirits/NNS
division/NN
up/IN
for/IN
sale/NN
,/,
setting/VBG
off/IN
a/DT
scramble/NN
among/IN
distillers/NNS
./.
The/DT
business/NN
includes/VBZ
Beefeater/NNP
gin/NN
./.
Markets/NNS
--/:
Stocks/NNS
:/:
Volume/NN
166,900,000/CD
shares/NNS
./.
Dow/NNP
Jones/NNP
industrials/VBZ
2643.65/CD
,/,
up/RB
4.92/CD
;/:
transportation/NN
1247.87/CD
,/,
off/RB
6.40/CD
;/:
utilities/NNS
213.97/CD
,/,
off/RB
0.57/CD
./.
Bonds/NNS
:/:
Shearson/NNP
Lehman/NNP
Hutton/NNP
Treasury/NNP
index/NN
3371.36/CD
,/,
off/RB
Commodities/NNS
:/:
Dow/NNP
Jones/NNP
futures/NNS
index/NN
129.90/CD
,/,
up/RB
0.18/CD
;/:
spot/NN
index/NN
130.36/CD
,/,
up/RB
0.39/CD
./.
Dollar/NN
:/:
141.45/CD
yen/NN
,/,
off/RB
1.30/CD
;/:
1.8485/CD
marks/NNS
,/,
off/RB
0.0182/CD
./.
The/DT
dollar/NN
finished/VBD
softer/JJR
yesterday/NN
,/,
tilted/VBN
lower/RBR
by/IN
continued/JJ
concern/NN
about/IN
the/DT
stock/NN
market/NN
./.
``/``
We/PRP
're/VBP
trading/VBG
with/IN
a/DT
very/RB
wary/JJ
eye/NN
on/IN
Wall/NNP
Street/NNP
,/,
''/''
said/VBD
Trevor/NNP
Woodland/NNP
,/,
chief/JJ
corporate/JJ
trader/NN
at/IN
Harris/NNP
Trust/NNP
&/CC
Savings/NNP
Bank/NNP
in/IN
New/NNP
York/NNP
./.
``/``
No/DT
one/NN
is/VBZ
willing/JJ
to/TO
place/VB
a/DT
firm/JJ
bet/NN
that/IN
the/DT
stock/NN
market/NN
wo/MD
n't/RB
take/VB
another/DT
tumultuous/JJ
ride/NN
./.
''/''
News/NN
of/IN
the/DT
major/JJ
earthquake/NN
in/IN
California/NNP
Tuesday/NNP
triggered/VBD
a/DT
round/NN
of/IN
dollar/NN
sales/NNS
in/IN
early/JJ
Asian/JJ
trade/NN
,/,
but/CC
most/RBS
foreign-exchange/NN
dealers/NNS
said/VBD
they/PRP
expect/VBP
the/DT
impact/NN
of/IN
the/DT
quake/NN
on/IN
financial/JJ
markets/NNS
to/TO
be/VB
short-lived/JJ
./.
Despite/IN
the/DT
dollar/NN
's/POS
lackluster/JJ
performance/NN
,/,
some/DT
foreign-exchange/NN
traders/NNS
maintain/VBP
that/IN
the/DT
U.S./NNP
unit/NN
remains/VBZ
relatively/RB
well/RB
bid/VBN
./.
Harris/NNP
Trust/NNP
's/POS
Mr./NNP
Woodland/NNP
noted/VBD
that/IN
the/DT
unit/NN
continues/VBZ
to/TO
show/VB
resilience/NN
in/IN
the/DT
face/NN
of/IN
a/DT
barrage/NN
of/IN
``/``
headline/NN
negatives/NNS
''/''
in/IN
recent/JJ
weeks/NNS
,/,
including/VBG
rate/NN
increases/NNS
in/IN
Europe/NNP
and/CC
Japan/NNP
,/,
aggressive/JJ
central/JJ
bank/NN
intervention/NN
,/,
a/DT
190-point/JJ
plunge/NN
in/IN
New/NNP
York/NNP
stock/NN
prices/NNS
,/,
an/DT
unexpectedly/RB
poor/JJ
U.S./NNP
trade/NN
report/NN
and/CC
action/NN
by/IN
the/DT
Federal/NNP
Reserve/NNP
to/TO
nudge/VB
U.S./NNP
rates/NNS
lower/RBR
./.
While/IN
Mr./NNP
Woodland/NNP
does/VBZ
n't/RB
predict/VB
a/DT
significant/JJ
climb/NN
for/IN
the/DT
U.S./NNP
unit/NN
in/IN
light/NN
of/IN
recent/JJ
moves/NNS
in/IN
interest/NN
rates/NNS
around/IN
the/DT
world/NN
,/,
he/PRP
noted/VBD
that/IN
``/``
its/PRP$
downside/JJ
potential/NN
is/VBZ
surprisingly/RB
and/CC
--/:
for/IN
dollar/NN
bulls/NNS
--/:
``/``
impressively/RB
''/''
limited/JJ
./.
In/IN
late/JJ
New/NNP
York/NNP
trading/NN
yesterday/NN
,/,
the/DT
dollar/NN
was/VBD
quoted/VBN
at/IN
1.8485/CD
marks/NNS
,/,
down/RB
from/IN
1.8667/CD
marks/NNS
late/RB
Tuesday/NNP
,/,
and/CC
at/IN
141.45/CD
yen/NN
,/,
down/RB
from/IN
142.75/CD
yen/NN
late/RB
Tuesday/NNP
./.
Sterling/NN
was/VBD
quoted/VBN
at/IN
$/$
1.5920/CD
,/,
up/RB
from/IN
$/$
1.5753/CD
late/RB
Tuesday/NNP
./.
In/IN
Tokyo/NNP
Thursday/NNP
,/,
the/DT
U.S./NNP
currency/NN
opened/VBD
for/IN
trading/VBG
at/IN
140.97/CD
yen/NN
,/,
down/RB
from/IN
Wednesday/NNP
's/POS
Tokyo/NNP
close/NN
of/IN
142.10/CD
yen/NN
./.
Since/IN
Friday/NNP
's/POS
dive/NN
in/IN
stock/NN
market/NN
prices/NNS
,/,
the/DT
Fed/NNP
has/VBZ
injected/VBN
reserves/NNS
into/IN
the/DT
banking/NN
system/NN
in/IN
an/DT
effort/NN
to/TO
calm/VB
the/DT
markets/NNS
and/CC
avert/VB
a/DT
repeat/NN
of/IN
1987/CD
's/POS
stock/NN
market/NN
debacle/NN
./.
Some/DT
analysts/NNS
note/VBP
that/IN
after/IN
last/JJ
week/NN
's/POS
stock/NN
market/NN
tailspin/NN
and/CC
Tuesday/NNP
's/POS
California/NNP
earthquake/NN
,/,
it/PRP
's/VBZ
hard/JJ
to/TO
gauge/VB
where/WRB
the/DT
central/JJ
bank/NN
wants/VBZ
the/DT
key/JJ
federal/JJ
funds/NNS
rate/NN
./.
They/PRP
say/VBP
that/IN
the/DT
earthquake/NN
,/,
by/IN
preventing/VBG
many/JJ
banks/NNS
from/IN
operating/VBG
at/IN
full/JJ
capacity/NN
,/,
has/VBZ
given/VBN
the/DT
Fed/NNP
an/DT
additional/JJ
reason/NN
to/TO
keep/VB
liquidity/NN
at/IN
a/DT
high/JJ
level/NN
./.
The/DT
Fed/NNP
did/VBD
,/,
in/IN
fact/NN
,/,
execute/VB
$/$
1.5/CD
billion/CD
of/IN
liquidity-enhancing/JJ
customer/NN
repurchase/NN
agreements/NNS
,/,
the/DT
third/JJ
set/NN
of/IN
repurchase/NN
orders/NNS
in/IN
three/CD
days/NNS
./.
Analysts/NNS
said/VBD
the/DT
additional/JJ
liquidity/NN
should/MD
tend/VB
to/TO
reduce/VB
the/DT
federal/JJ
funds/NNS
rate/NN
./.
For/IN
now/RB
,/,
traders/NNS
say/VBP
the/DT
foreign/JJ
exchange/NN
market/NN
is/VBZ
scrutinizing/VBG
both/DT
federal/JJ
funds/NNS
and/CC
events/NNS
on/IN
Wall/NNP
Street/NNP
./.
They/PRP
note/VBP
that/IN
the/DT
dollar/NN
remains/VBZ
extremely/RB
vulnerable/JJ
to/TO
the/DT
slightest/JJS
bad/JJ
news/NN
from/IN
the/DT
stock/NN
exchange/NN
./.
Indeed/RB
,/,
the/DT
U.S./NNP
unit/NN
edged/VBD
lower/RBR
as/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
dropped/VBD
about/RB
13/CD
points/NNS
in/IN
early/JJ
trading/NN
./.
A/DT
slight/JJ
recovery/NN
in/IN
the/DT
stock/NN
market/NN
gave/VBD
currency/NN
traders/NNS
confidence/NN
to/TO
push/VB
the/DT
dollar/NN
higher/RBR
before/IN
the/DT
unit/NN
dropped/VBD
back/RB
by/IN
day/NN
's/POS
end/NN
./.
Some/DT
dealers/NNS
noted/VBD
that/DT
nervousness/NN
over/IN
the/DT
recent/JJ
sharp/JJ
dive/NN
in/IN
stock/NN
prices/NNS
could/MD
intensify/VB
following/VBG
suggestions/NNS
by/IN
Bank/NNP
of/IN
Japan/NNP
Governor/NNP
Satoshi/NNP
Sumita/NNP
that/WDT
appeared/VBD
to/TO
advise/VB
Japanese/JJ
investors/NNS
to/TO
be/VB
very/RB
careful/JJ
in/IN
investing/VBG
in/IN
U.S./NNP
leveraged/JJ
buy-outs/NNS
./.
Dealers/NNS
suggest/VBP
that/IN
the/DT
only/JJ
positive/JJ
news/NN
on/IN
the/DT
horizon/NN
that/WDT
could/MD
detract/VB
attention/NN
from/IN
equities/NNS
transactions/NNS
is/VBZ
September/NNP
's/POS
U.S./NNP
consumer/NN
price/NN
data/NNS
./.
The/DT
figures/NNS
,/,
due/JJ
for/IN
release/NN
Friday/NNP
,/,
are/VBP
expected/VBN
to/TO
show/VB
an/DT
uptick/NN
in/IN
inflation/NN
to/TO
4.8/CD
%/NN
from/IN
4.7/CD
%/NN
in/IN
August/NNP
./.
If/IN
the/DT
figures/NNS
show/VBP
a/DT
hefty/JJ
rise/NN
in/IN
inflation/NN
,/,
they/PRP
could/MD
militate/VB
against/IN
easing/NN
by/IN
the/DT
Fed/NNP
./.
On/IN
the/DT
Commodity/NNP
Exchange/NNP
in/IN
New/NNP
York/NNP
,/,
gold/NN
for/IN
current/JJ
delivery/NN
rose/VBD
$/$
1.30/CD
to/TO
$/$
368.70/CD
an/DT
ounce/NN
in/IN
moderate/JJ
trading/NN
./.
Estimated/JJ
volume/NN
was/VBD
three/CD
million/CD
ounces/NNS
./.
In/IN
early/JJ
trading/NN
in/IN
Hong/NNP
Kong/NNP
Thursday/NNP
,/,
gold/NN
was/VBD
at/IN
$/$
368.15/CD
an/DT
ounce/NN
./.
Crude/NN
prices/NNS
spurted/VBD
upward/RB
in/IN
brisk/JJ
trading/NN
on/IN
the/DT
assumption/NN
that/IN
heavy/JJ
earthquake/NN
damage/NN
occurred/VBD
to/TO
San/NNP
Francisco/NNP
area/NN
refinery/NN
complexes/NNS
,/,
but/CC
the/DT
rise/NN
quickly/RB
fizzled/VBD
when/WRB
it/PRP
became/VBD
apparent/JJ
that/IN
oil/NN
operations/NNS
were/VBD
n't/RB
severely/RB
curtailed/VBN
./.
Trading/VBG
on/IN
little/JJ
specific/JJ
information/NN
,/,
market/NN
players/NNS
overnight/RB
in/IN
Tokyo/NNP
began/VBD
bidding/VBG
up/IN
oil/NN
prices/NNS
./.
The/DT
rally/NN
spread/VBD
into/IN
European/JJ
markets/NNS
,/,
where/WRB
traders/NNS
were/VBD
still/RB
betting/VBG
that/IN
the/DT
earthquake/NN
disrupted/VBD
the/DT
San/NNP
Francisco/NNP
area/NN
's/POS
large/JJ
oil/NN
refining/NN
plants/NNS
./.
By/IN
yesterday/NN
morning/NN
,/,
much/JJ
of/IN
the/DT
world/NN
was/VBD
still/RB
unable/JJ
to/TO
reach/VB
San/NNP
Francisco/NNP
by/IN
telephone/NN
./.
West/NNP
Texas/NNP
Intermediate/NNP
was/VBD
bid/VBN
up/RP
more/JJR
than/IN
20/CD
cents/NNS
a/DT
barrel/NN
in/IN
many/JJ
overseas/JJ
markets/NNS
./.
At/IN
the/DT
opening/NN
of/IN
the/DT
New/NNP
York/NNP
Mercantile/NNP
Exchange/NNP
,/,
West/NNP
Texas/NNP
Intermediate/NNP
for/IN
November/NNP
delivery/NN
shot/VBD
up/RB
10/CD
cents/NNS
a/DT
barrel/NN
,/,
to/TO
$/$
20.85/CD
,/,
still/RB
on/IN
the/DT
belief/NN
that/IN
the/DT
refineries/NNS
were/VBD
damaged/VBN
./.
In/IN
the/DT
San/NNP
Francisco/NNP
area/NN
,/,
roughly/RB
800,000/CD
barrels/NNS
a/DT
day/NN
of/IN
crude/NN
,/,
about/RB
a/DT
third/NN
of/IN
all/PDT
the/DT
refining/NN
capacity/NN
in/IN
California/NNP
,/,
is/VBZ
processed/VBN
daily/RB
,/,
according/VBG
to/TO
industry/NN
data/NNS
./.
For/IN
more/RBR
than/IN
the/DT
past/NN
year/NN
,/,
even/RB
the/DT
rumor/NN
of/IN
a/DT
major/JJ
West/NNP
Coast/NNP
refinery/NN
shutdown/NN
has/VBZ
been/VBN
enough/NN
to/TO
spark/VB
a/DT
futures/NNS
rally/NN
because/IN
the/DT
gasoline/NN
market/NN
is/VBZ
so/RB
tight/JJ
./.
But/CC
yesterday/NN
,/,
as/IN
the/DT
morning/NN
wore/VBD
on/RB
,/,
some/DT
major/JJ
West/NNP
Coast/NNP
refinery/NN
operators/NNS
--/:
including/VBG
Chevron/NNP
Corp./NNP
,/,
Exxon/NNP
Corp./NNP
and/CC
the/DT
Shell/NNP
Oil/NNP
Co./NNP
unit/NN
of/IN
Royal/NNP
Dutch\/Shell/NNP
Group/NNP
--/:
said/VBD
their/PRP$
refineries/NNS
were/VBD
n't/RB
damaged/VBN
and/CC
were/VBD
continuing/VBG
to/TO
operate/VB
normally/RB
./.
Most/RBS
said/VBD
they/PRP
shut/VBD
down/RP
their/PRP$
petroleum/NN
pipeline/NN
operations/NNS
as/IN
a/DT
precaution/NN
but/CC
did/VBD
n't/RB
see/VB
any/DT
immediate/JJ
damage/NN
./.
Gasoline/NN
terminals/NNS
were/VBD
also/RB
largely/RB
unhurt/JJ
,/,
they/PRP
said/VBD
./.
``/``
It/PRP
's/VBZ
hard/JJ
to/TO
imagine/VB
how/WRB
the/DT
markets/NNS
were/VBD
speculating/VBG
,/,
given/VBN
that/IN
nobody/NN
could/MD
get/VB
through/IN
to/TO
San/NNP
Francisco/NNP
,/,
''/''
said/VBD
one/CD
amazed/JJ
oil/NN
company/NN
executive/NN
./.
As/IN
the/DT
news/NN
spread/VBD
that/IN
the/DT
refineries/NNS
were/VBD
intact/JJ
,/,
crude/JJ
prices/NNS
plunged/VBD
,/,
ending/VBG
the/DT
day/NN
at/IN
$/$
20.56/CD
a/DT
barrel/NN
,/,
down/RB
19/CD
cents/NNS
./.
Gasoline/NN
for/IN
November/NNP
delivery/NN
was/VBD
off/RB
1.26/CD
cents/NNS
a/DT
gallon/NN
to/TO
54.58/CD
cents/NNS
./.
Heating/NN
oil/NN
finished/VBD
at/IN
60.6/CD
cents/NNS
,/,
down/RB
0.45/CD
cent/NN
./.
``/``
The/DT
market/NN
was/VBD
basically/RB
acting/VBG
on/IN
two/CD
contradictory/JJ
forces/NNS
,/,
''/''
said/VBD
Nauman/NNP
Barakat/NNP
of/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc/NNP
./.
``/``
One/CD
is/VBZ
the/DT
panic/NN
,/,
the/DT
earthquake/NN
in/IN
San/NNP
Francisco/NNP
,/,
which/WDT
is/VBZ
positive/JJ
./.
''/''
But/CC
once/RB
that/DT
factor/NN
was/VBD
eliminated/VBN
,/,
traders/NNS
took/VBD
profits/NNS
and/CC
focused/VBD
on/IN
crude/JJ
oil/NN
inventories/NNS
,/,
Mr./NNP
Barakat/NNP
said/VBD
./.
After/IN
the/DT
market/NN
closed/VBD
Tuesday/NNP
,/,
the/DT
American/NNP
Petroleum/NNP
Institute/NNP
had/VBD
reported/VBN
that/IN
crude/JJ
stocks/NNS
increased/VBD
by/IN
5.7/CD
million/CD
barrels/NNS
in/IN
the/DT
week/NN
ended/VBD
Friday/NNP
,/,
which/WDT
traders/NNS
viewed/VBD
as/IN
bearish/JJ
./.
But/CC
some/DT
market/NN
players/NNS
still/RB
think/VBP
earthquake/NN
speculation/NN
could/MD
have/VB
more/JJR
impact/NN
on/IN
the/DT
oil/NN
markets/NNS
./.
``/``
The/DT
problem/NN
is/VBZ
that/IN
while/IN
on/IN
the/DT
surface/NN
everything/NN
is/VBZ
all/RB
right/JJ
,/,
the/DT
question/NN
is/VBZ
,/,
''/''
said/VBD
Mr./NNP
Barakat/NNP
,/,
``/``
was/VBD
there/EX
any/DT
structural/JJ
damage/NN
to/TO
the/DT
pipelines/NNS
or/CC
anything/NN
else/RB
./.
''/''
In/IN
other/JJ
commodity/NN
markets/NNS
yesterday/NN
:/:
COPPER/NN
:/:
Futures/NNS
prices/NNS
eased/VBD
on/IN
indications/NNS
of/IN
improvement/NN
in/IN
the/DT
industry/NN
's/POS
labor/NN
situation/NN
./.
The/DT
December/NNP
contract/NN
declined/VBD
1.85/CD
cents/NNS
a/DT
pound/NN
to/TO
$/$
1.2645/CD
./.
According/VBG
to/TO
one/CD
analyst/NN
,/,
workers/NNS
at/IN
the/DT
Cananea/NNP
copper/NN
mine/NN
in/IN
Mexico/NNP
,/,
which/WDT
has/VBZ
n't/RB
been/VBN
operating/VBG
since/IN
it/PRP
was/VBD
declared/VBN
bankrupt/JJ
by/IN
the/DT
Mexican/JJ
government/NN
in/IN
late/JJ
August/NNP
,/,
are/VBP
set/VBN
to/TO
return/VB
to/TO
work/VB
./.
The/DT
analyst/NN
said/VBD
it/PRP
will/MD
take/VB
about/RB
two/CD
to/TO
three/CD
months/NNS
before/IN
the/DT
mine/NN
begins/VBZ
to/TO
produce/VB
copper/NN
in/IN
significant/JJ
quantities/NNS
./.
He/PRP
added/VBD
that/IN
,/,
while/IN
there/EX
has/VBZ
n't/RB
been/VBN
any/DT
official/JJ
announcement/NN
as/IN
yet/RB
,/,
the/DT
Highland/NNP
Valley/NNP
mine/JJ
strike/NN
in/IN
British/NNP
Columbia/NNP
,/,
which/WDT
has/VBZ
lasted/VBN
more/RBR
than/IN
three/CD
months/NNS
,/,
is/VBZ
regarded/VBN
as/IN
settled/VBN
./.
Another/DT
analyst/NN
said/VBD
the/DT
Cananea/NNP
return/NN
to/TO
operation/NN
may/MD
not/RB
be/VB
as/RB
near/RB
as/IN
some/DT
expect/VBP
./.
``/``
There/EX
are/VBP
still/RB
negotiations/NNS
taking/VBG
place/NN
on/IN
whether/IN
there/EX
will/MD
be/VB
a/DT
loss/NN
of/IN
jobs/NNS
,/,
which/WDT
has/VBZ
been/VBN
a/DT
critical/JJ
issue/NN
all/RB
along/RB
,/,
''/''
he/PRP
said/VBD
./.
Nevertheless/RB
,/,
the/DT
increasing/JJ
likelihood/NN
that/IN
these/DT
two/CD
major/JJ
supply/NN
disruptions/NNS
will/MD
be/VB
resolved/VBN
weighed/VBD
on/IN
the/DT
market/NN
,/,
the/DT
analysts/NNS
agreed/VBD
./.
Both/DT
of/IN
these/DT
mines/NNS
are/VBP
normally/RB
major/JJ
suppliers/NNS
of/IN
copper/NN
to/TO
Japan/NNP
,/,
which/WDT
has/VBZ
been/VBN
buying/VBG
copper/NN
on/IN
the/DT
world/NN
market/NN
./.
The/DT
first/JJ
analyst/NN
said/VBD
that/IN
the/DT
Japanese/NNPS
,/,
as/RB
well/RB
as/IN
the/DT
Chinese/NNPS
,/,
bought/VBD
copper/NN
earlier/RBR
in/IN
the/DT
week/NN
in/IN
London/NNP
,/,
but/CC
that/IN
this/DT
purchasing/NN
has/VBZ
since/IN
slackened/VBN
as/IN
the/DT
supply/NN
situation/NN
,/,
at/IN
least/JJS
over/IN
the/DT
long/JJ
term/NN
,/,
appears/VBZ
to/TO
have/VB
improved/VBN
./.
``/``
The/DT
focus/NN
for/IN
some/DT
time/NN
has/VBZ
been/VBN
on/IN
the/DT
copper/NN
supply/NN
,/,
and/CC
good/JJ
demand/NN
has/VBZ
been/VBN
taken/VBN
for/IN
granted/JJ
,/,
''/''
he/PRP
said/VBD
./.
``/``
Now/RB
that/IN
the/DT
supply/NN
situation/NN
seems/VBZ
to/TO
be/VB
improving/VBG
,/,
it/PRP
would/MD
be/VB
best/JJS
for/IN
traders/NNS
to/TO
switch/VB
their/PRP$
concentration/NN
to/TO
the/DT
demand/NN
side/NN
./.
''/''
He/PRP
noted/VBD
the/DT
Commerce/NNP
Department/NNP
report/NN
yesterday/NN
that/DT
housing/NN
starts/NNS
in/IN
September/NNP
dropped/VBD
5.2/CD
%/NN
from/IN
August/NNP
to/TO
1.26/CD
million/CD
units/NNS
on/IN
an/DT
annualized/JJ
basis/NN
,/,
the/DT
lowest/JJS
level/NN
in/IN
seven/CD
years/NNS
./.
``/``
Along/RB
with/IN
these/DT
factors/NNS
,/,
other/JJ
economic/JJ
reports/NNS
suggest/VBP
a/DT
slowing/NN
of/IN
the/DT
economy/NN
,/,
which/WDT
could/MD
mean/VB
reduced/JJ
copper/NN
usage/NN
,/,
''/''
he/PRP
said/VBD
./.
SUGAR/NN
:/:
Futures/NNS
prices/NNS
extended/VBD
Tuesday/NNP
's/POS
gains/NNS
./.
The/DT
March/NNP
delivery/NN
ended/VBD
with/IN
an/DT
advance/NN
of/IN
0.16/CD
cent/NN
a/DT
pound/NN
to/TO
14.27/CD
cents/NNS
,/,
for/IN
a/DT
two-day/JJ
gain/NN
of/IN
0.3/CD
cent/NN
./.
According/VBG
to/TO
one/CD
dealer/NN
,/,
Japan/NNP
said/VBD
it/PRP
has/VBZ
only/RB
40,000/CD
tons/NNS
of/IN
sugar/NN
remaining/VBG
to/TO
be/VB
shipped/VBN
to/TO
it/PRP
this/DT
year/NN
by/IN
Cuba/NNP
under/IN
current/JJ
commitments/NNS
./.
The/DT
announcement/NN
was/VBD
made/VBN
because/IN
of/IN
reports/NNS
Tuesday/NNP
that/IN
Cuba/NNP
would/MD
delay/VB
shipments/NNS
to/TO
Japan/NNP
scheduled/VBN
for/IN
later/RB
this/DT
year/NN
,/,
into/IN
early/RB
next/JJ
year/NN
./.
The/DT
dealer/NN
said/VBD
the/DT
quantity/NN
mentioned/VBN
in/IN
the/DT
Japanese/JJ
announcement/NN
is/VBZ
so/RB
small/JJ
that/IN
it/PRP
's/VBZ
meaningless/JJ
./.
One/CD
analyst/NN
said/VBD
he/PRP
thought/VBD
the/DT
market/NN
continued/VBD
to/TO
be/VB
supported/VBN
to/TO
some/DT
degree/NN
by/IN
a/DT
delay/NN
in/IN
the/DT
Cuban/JJ
sugar/NN
harvest/NN
caused/VBN
by/IN
adverse/JJ
weather/NN
./.
The/DT
dealer/NN
said/VBD
India/NNP
might/MD
be/VB
the/DT
real/JJ
factor/NN
that/WDT
is/VBZ
keeping/VBG
futures/NNS
prices/NNS
firm/JJ
./.
That/DT
country/NN
recently/RB
bought/VBD
200,000/CD
tons/NNS
of/IN
sugar/NN
and/CC
had/VBD
been/VBN
expected/VBN
to/TO
seek/VB
a/DT
like/JJ
quantity/NN
last/JJ
week/NN
but/CC
did/VBD
n't/RB
./.
``/``
It/PRP
's/VBZ
known/VBN
they/PRP
need/VBP
the/DT
sugar/NN
,/,
and/CC
the/DT
expectation/NN
that/IN
they/PRP
will/MD
come/VB
in/RB
is/VBZ
apparently/RB
giving/VBG
the/DT
market/NN
its/PRP$
principal/JJ
support/NN
,/,
''/''
the/DT
dealer/NN
said/VBD
./.
LIVESTOCK/NN
AND/CC
MEATS/NNS
:/:
The/DT
Agriculture/NNP
Department/NNP
is/VBZ
expected/VBN
to/TO
announce/VB
tomorrow/NN
that/IN
the/DT
number/NN
of/IN
cattle/NNS
in/IN
the/DT
13/CD
major/JJ
ranch/NN
states/NNS
slipped/VBD
4/CD
%/NN
to/TO
8.21/CD
million/CD
on/IN
Oct./NNP
1/CD
compared/VBN
with/IN
the/DT
level/NN
a/DT
year/NN
earlier/RBR
,/,
said/VBD
Tom/NNP
Morgan/NNP
,/,
president/NN
of/IN
Sterling/NNP
Research/NNP
Corp./NNP
,/,
Arlington/NNP
Heights/NNP
,/,
Ill/NNP
./.
Cattle/NNS
prices/NNS
have/VBP
risen/VBN
in/IN
recent/JJ
weeks/NNS
on/IN
speculation/NN
that/IN
the/DT
government/NN
's/POS
quarterly/JJ
report/NN
will/MD
signal/VB
tighter/JJR
supplies/NNS
of/IN
beef/NN
./.
Among/IN
other/JJ
things/NNS
,/,
the/DT
government/NN
is/VBZ
expected/VBN
to/TO
report/VB
that/IN
the/DT
number/NN
of/IN
young/JJ
cattle/NNS
placed/VBN
on/IN
feedlots/NNS
during/IN
the/DT
quarter/NN
slipped/VBD
3/CD
%/NN
./.
Feedlots/NNS
fatten/VBP
cattle/NNS
for/IN
slaughter/NN
,/,
so/IN
a/DT
drop/NN
indicates/VBZ
that/IN
the/DT
production/NN
of/IN
beef/NN
will/MD
dip/VB
this/DT
winter/NN
./.
Indeed/RB
,/,
some/DT
analysts/NNS
expect/VBP
the/DT
government/NN
to/TO
report/VB
that/IN
the/DT
movement/NN
of/IN
young/JJ
cattle/NNS
onto/IN
feedlots/NNS
in/IN
the/DT
month/NN
of/IN
September/NNP
in/IN
seven/CD
big/JJ
ranch/NN
states/NNS
dropped/VBD
8/CD
%/NN
compared/VBN
with/IN
the/DT
level/NN
for/IN
September/NNP
1988/CD
./.
The/DT
following/JJ
issues/NNS
were/VBD
recently/RB
filed/VBN
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
:/:
Health/NNP
Care/NNP
Property/NNP
Investors/NNP
Inc./NNP
,/,
offering/VBG
of/IN
2,250,000/CD
shares/NNS
of/IN
common/JJ
stock/NN
,/,
via/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
,/,
Alex/NNP
./.
Brown/NNP
&/CC
Sons/NNP
Inc./NNP
and/CC
Dean/NNP
Witter/NNP
Reynolds/NNP
Inc/NNP
./.
Union/NNP
Pacific/NNP
Corp./NNP
,/,
shelf/NN
offering/NN
of/IN
up/IN
to/TO
$/$
500/CD
million/CD
debt/NN
securities/NNS
and/CC
warrants/NNS
./.
United/NNP
Technologies/NNP
Corp./NNP
,/,
shelf/NN
offering/NN
of/IN
up/IN
to/TO
$/$
500/CD
million/CD
unsubordinated/JJ
non-convertible/JJ
unsecured/JJ
debt/NN
securities/NNS
./.
A/DT
new/JJ
drug/NN
to/TO
prevent/VB
the/DT
rejection/NN
of/IN
transplanted/JJ
organs/NNS
has/VBZ
been/VBN
successfully/RB
used/VBN
on/IN
more/JJR
than/IN
100/CD
patients/NNS
at/IN
the/DT
University/NNP
of/IN
Pittsburgh/NNP
,/,
according/VBG
to/TO
researchers/NNS
./.
The/DT
drug/NN
,/,
which/WDT
is/VBZ
still/RB
in/IN
the/DT
experimental/JJ
phase/NN
,/,
has/VBZ
n't/RB
been/VBN
approved/VBN
yet/RB
by/IN
the/DT
Food/NNP
and/CC
Drug/NNP
Admistration/NNP
,/,
and/CC
its/PRP$
long-term/JJ
effects/NNS
are/VBP
unknown/JJ
./.
But/CC
researchers/NNS
say/VBP
the/DT
drug/NN
,/,
called/VBN
FK-506/NNP
,/,
could/MD
revolutionize/VB
the/DT
transplantation/NN
field/NN
by/IN
reducing/VBG
harmful/JJ
side/JJ
effects/NNS
and/CC
by/IN
lowering/VBG
rejection/NN
rates/NNS
./.
Rejection/NN
has/VBZ
been/VBN
the/DT
major/JJ
obstacle/NN
in/IN
the/DT
approximately/RB
30,000/CD
organ/NN
transplants/NNS
performed/VBN
world-wide/RB
each/DT
year/NN
./.
Researchers/NNS
began/VBD
using/VBG
the/DT
drug/NN
in/IN
February/NNP
on/IN
patients/NNS
who/WP
had/VBD
received/VBN
kidney/NN
,/,
liver/NN
,/,
heart/NN
and/CC
pancreas/NN
transplants/NNS
./.
Only/RB
two/CD
of/IN
111/CD
transplants/NNS
have/VBP
been/VBN
rejected/VBN
./.
The/DT
drug/NN
,/,
discovered/VBN
in/IN
1984/CD
,/,
is/VBZ
metabolized/VBN
from/IN
soil/NN
fungus/NN
found/VBN
in/IN
Japan/NNP
./.
The/DT
Pittsburgh/NNP
patients/NNS
are/VBP
the/DT
first/JJ
humans/NNS
to/TO
be/VB
given/VBN
the/DT
drug/NN
,/,
which/WDT
is/VBZ
made/VBN
by/IN
Fujisawa/NNP
Pharmaceutical/NNP
Co/NNP
./.
``/``
We/PRP
're/VBP
shocked/JJ
by/IN
it/PRP
,/,
because/IN
it/PRP
's/VBZ
worked/VBN
so/RB
fast/RB
,/,
''/''
said/VBD
Dr./NNP
Thomas/NNP
E./NNP
Starzl/NNP
,/,
director/NN
of/IN
the/DT
University/NNP
of/IN
Pittsburgh/NNP
Transplantation/NNP
Program/NNP
,/,
at/IN
a/DT
news/NN
conference/NN
here/RB
yesterday/NN
./.
``/``
We/PRP
consider/VBP
it/PRP
a/DT
life-saving/JJ
drug/NN
,/,
like/IN
one/CD
for/IN
AIDS/NNP
,/,
''/''
said/VBD
Dr./NNP
John/NNP
Fung/NNP
,/,
an/DT
immunologist/NN
at/IN
the/DT
University/NNP
of/IN
Pittsburgh/NNP
./.
Researchers/NNS
say/VBP
they/PRP
believe/VBP
FK-506/NNP
is/VBZ
100/CD
times/NNS
more/RBR
effective/JJ
than/IN
the/DT
traditional/JJ
anti-rejection/JJ
drug/NN
,/,
cyclosporine/NN
,/,
made/VBN
by/IN
Swiss/JJ
pharmaceutical/JJ
giant/NN
Sandoz/NNP
Ltd/NNP
./.
They/PRP
are/VBP
also/RB
encouraged/VBN
by/IN
the/DT
relatively/RB
mild/JJ
side/JJ
effects/NNS
of/IN
FK-506/NNP
,/,
compared/VBN
with/IN
cyclosporine/NN
,/,
which/WDT
can/MD
cause/VB
renal/JJ
failure/NN
,/,
morbidity/NN
,/,
nausea/NN
and/CC
other/JJ
problems/NNS
./.
``/``
The/DT
side/JJ
effects/NNS
cyclosporine/NN
the/DT
penalty/NN
for/IN
its/PRP$
success/NN
rather/RB
high/JJ
,/,
''/''
Dr./NNP
Starzl/NNP
said/VBD
./.
Dr./NNP
Fung/NNP
said/VBD
that/IN
FK-506/NNP
would/MD
not/RB
be/VB
available/JJ
in/IN
the/DT
market/NN
for/IN
at/IN
least/JJS
a/DT
year/NN
,/,
and/CC
that/IN
the/DT
FDA/NNP
approval/NN
process/NN
usually/RB
takes/VBZ
three/CD
years/NNS
to/TO
five/CD
years/NNS
./.
There/EX
are/VBP
no/DT
firm/JJ
plans/NNS
to/TO
expand/VB
the/DT
experimental/JJ
program/NN
beyond/IN
the/DT
University/NNP
of/IN
Pittsburgh/NNP
,/,
whose/WP$
hospital/NN
performs/VBZ
the/DT
most/JJS
transplants/NNS
in/IN
the/DT
world/NN
./.
Researchers/NNS
could/MD
n't/RB
estimate/VB
the/DT
cost/NN
of/IN
the/DT
drug/NN
when/WRB
it/PRP
reaches/VBZ
the/DT
market/NN
,/,
but/CC
they/PRP
said/VBD
FK-506/NNP
will/MD
enable/VB
patients/NNS
to/TO
cut/VB
hospital/NN
stays/NNS
by/IN
50/CD
%/NN
and/CC
reduce/VB
the/DT
number/NN
of/IN
blood/NN
tests/NNS
used/VBN
to/TO
monitor/VB
the/DT
dosage/NN
of/IN
cyclosporine/JJ
and/CC
other/JJ
drugs/NNS
among/IN
transplant/NN
recipients/NNS
./.
Dr./NNP
Starzl/NNP
said/VBD
the/DT
research/NN
has/VBZ
been/VBN
largely/RB
financed/VBN
by/IN
the/DT
National/NNP
Institute/NNP
of/IN
Health/NNP
and/CC
by/IN
university/NN
funds/NNS
,/,
and/CC
that/IN
Fujisawa/NNP
did/VBD
n't/RB
give/VB
the/DT
hospital/NN
any/DT
grants/NNS
./.
He/PRP
said/VBD
that/IN
the/DT
research/NN
team/NN
had/VBD
no/DT
financial/JJ
stake/NN
in/IN
the/DT
drug/NN
./.
``/``
We/PRP
've/VBP
known/VBN
for/IN
six/CD
months/NNS
the/DT
effect/NN
of/IN
this/DT
drug/NN
,/,
and/CC
our/PRP$
advice/NN
to/TO
our/PRP$
people/NNS
has/VBZ
been/VBN
not/RB
to/TO
buy/VB
the/DT
company/NN
's/POS
stock/NN
,/,
''/''
Dr./NNP
Starzl/NNP
said/VBD
,/,
adding/VBG
that/IN
profiting/VBG
from/IN
FK-506/NNP
would/MD
n't/RB
be/VB
ethical/JJ
./.
Economist/NN
David/NNP
N./NNP
Laband/NNP
's/POS
Sept./NNP
27/CD
editorial-page/NN
article/NN
,/,
``/``
In/IN
Hugo/NNP
's/POS
Path/NN
,/,
a/DT
Man-Made/JJ
Disaster/NN
,/,
''/''
decries/VBZ
the/DT
control/NN
of/IN
price/NN
gouging/NN
,/,
swiftly/RB
ordered/VBN
by/IN
South/NNP
Carolina/NNP
's/POS
governor/NN
after/IN
Hurricane/NNP
Hugo/NNP
./.
According/VBG
to/TO
Mr./NNP
Laband/NNP
,/,
``/``
screaming/VBG
''/''
for/IN
price/NN
controls/NNS
occurs/VBZ
when/WRB
income/NN
redistribution/NN
``/``
threatens/VBZ
to/TO
hit/VB
home/NN
./.
''/''
To/TO
be/VB
sure/JJ
,/,
the/DT
threat/NN
has/VBZ
hit/VBN
home/NN
down/IN|RB
here/RB
./.
Yet/CC
in/IN
Mr./NNP
Laband/NNP
's/POS
rehash/NN
of/IN
free-market/JJ
logic/NN
,/,
human/JJ
greed/NN
and/CC
self-interest/NN
are/VBP
the/DT
only/JJ
permissible/JJ
psychological/JJ
reactions/NNS
./.
Allowing/VBG
uncontrolled/JJ
prices/NNS
for/IN
necessities/NNS
would/MD
indeed/RB
shorten/VB
the/DT
lines/NNS
at/IN
stores/NNS
,/,
as/IN
he/PRP
contends/VBZ
./.
But/CC
not/RB
because/IN
resources/NNS
are/VBP
going/VBG
to/TO
their/PRP$
most/RBS
efficient/JJ
use/NN
,/,
leaving/VBG
scarce/JJ
goods/NNS
``/``
allocated/VBN
to/TO
those/DT
buyers/NNS
who/WP
place/VBP
the/DT
highest/JJS
value/NN
on/IN
them/PRP
./.
''/''
Rather/RB
,/,
lines/NNS
would/MD
diminish/VB
because/RB
at/IN
higher/JJR
prices/NNS
many/JJ
victims/NNS
could/MD
not/RB
afford/VB
necessities/NNS
such/JJ
as/IN
food/NN
and/CC
medical/JJ
supplies/NNS
./.
It/PRP
is/VBZ
inhumane/JJ
to/TO
imply/VB
that/IN
a/DT
poor/JJ
,/,
unemployed/JJ
woman/NN
can/MD
not/RB
receive/VB
immediate/JJ
relief/NN
for/IN
her/PRP$
family/NN
at/IN
fair/JJ
prices/NNS
because/IN
she/PRP
does/VBZ
not/RB
have/VB
as/RB
much/JJ
to/TO
protect/VB
as/IN
a/DT
rich/JJ
family/NN
./.
Moreover/RB
,/,
essential/JJ
relief/NN
supplies/NNS
such/JJ
as/IN
ice/NN
must/MD
be/VB
distributed/VBN
throughout/IN
the/DT
population/NN
because/IN
of/IN
potential/JJ
health/NN
problems/NNS
from/IN
spoiled/JJ
food/NN
and/CC
possible/JJ
outbreak/NN
of/IN
disease/NN
./.
Such/JJ
spillover/NN
effects/NNS
give/VBP
the/DT
state/NN
a/DT
right/NN
to/TO
intervene/VB
in/IN
the/DT
marketplace/NN
and/CC
temporarily/RB
coordinate/VB
allocation/NN
of/IN
resources/NNS
./.
Fortunately/RB
,/,
volunteers/NNS
and/CC
charities/NNS
are/VBP
not/RB
motivated/VBN
by/IN
self-interest/NN
,/,
but/CC
by/IN
altruism/NN
./.
Why/WRB
should/MD
they/PRP
have/VBP
to/TO
co-exist/VB
with/IN
opportunists/NNS
rushing/VBG
in/RB
to/TO
turn/VB
a/DT
quick/JJ
profit/NN
?/.
These/DT
latter-day/JJ
scalawags/NNS
would/MD
be/VB
ill-advised/JJ
to/TO
take/VB
advantage/NN
of/IN
the/DT
situation/NN
,/,
if/IN
they/PRP
ever/RB
expect/VBP
to/TO
face/VB
the/DT
people/NNS
of/IN
South/NNP
Carolina/NNP
again/RB
./.
The/DT
government/NN
is/VBZ
actually/RB
protecting/VBG
avaricious/JJ
ice-baggers/NNS
and/CC
other/JJ
profiteers/NNS
who/WP
can/MD
not/RB
see/VB
beyond/IN
their/PRP$
own/JJ
short-term/JJ
gain/NN
./.
South/NNP
Carolina/NNP
deserves/VBZ
an/DT
A/NN
for/IN
its/PRP$
quick/JJ
and/CC
timely/JJ
relief/NN
efforts/NNS
./.
Mr./NNP
Laband/NNP
,/,
meanwhile/RB
,/,
gets/VBZ
an/DT
A/NN
for/IN
his/PRP$
rote/JJ
recital/NN
of/IN
economic-efficiency/NN
arguments/NNS
./.
Give/VB
him/PRP
an/DT
F/NN
for/IN
his/PRP$
failure/NN
to/TO
understand/VB
the/DT
ethics/NNS
of/IN
economic/JJ
equity/NN
./.
Signed/VBN
by/IN
25/CD
students/NNS
Of/IN
Douglas/NNP
Woodward/NNP
's/POS
Honors/NNP
Economics/NNP
Class/NNP
,/,
University/NNP
of/IN
South/NNP
Carolina/NNP
Columbia/NNP
,/,
S.C/NNP
./.
Mr./NNP
Laband/NNP
gives/VBZ
us/PRP
an/DT
idea/NN
why/WRB
economists/NNS
'/POS
predictions/NNS
are/VBP
usually/RB
wrong/JJ
./.
They/PRP
set/VBP
up/RP
absurd/JJ
situations/NNS
,/,
detached/VBN
from/IN
reality/NN
,/,
and/CC
then/RB
try/VB
to/TO
reason/VB
from/IN
them/PRP
./.
I/PRP
'm/VBP
surprised/JJ
he/PRP
did/VBD
n't/RB
advocate/NN
letting/VBG
people/NNS
loot/VB
,/,
since/IN
that/DT
behavior/NN
can/MD
also/RB
be/VB
foreseen/VBN
in/IN
a/DT
disaster/NN
and/CC
``/``
every/DT
individual/NN
has/VBZ
an/DT
incentive/NN
to/TO
alter/VB
the/DT
distribution/NN
of/IN
income/NN
in/IN
his/PRP$
favor/NN
./.
''/''
Price/NN
controls/NNS
were/VBD
``/``
so/RB
fervently/RB
embraced/VBN
by/IN
Charleston/NNP
''/''
because/IN
price/NN
gouging/NN
in/IN
this/DT
situation/NN
is/VBZ
equivalent/JJ
to/TO
looting/VBG
./.
Suzanne/NNP
Foster/NNP
Galax/NNP
,/,
Va/NNP
./.
Mr./NNP
Laband/NNP
described/VBD
one/CD
of/IN
the/DT
more/RBR
insidious/JJ
threats/NNS
we/PRP
face/VBP
when/WRB
dealing/VBG
with/IN
disasters/NNS
such/JJ
as/IN
Hugo/NNP
--/:
anti-profiteering/JJ
ordinances/NNS
such/JJ
as/IN
that/DT
by/IN
the/DT
Charleston/NNP
City/NNP
Council/NNP
as/IN
it/PRP
thrashed/VBD
about/RB
trying/VBG
to/TO
Do/VB
Something/NN
./.
Since/IN
he/PRP
concentrated/VBD
on/IN
the/DT
economic/JJ
folly/NN
of/IN
such/JJ
ordinances/NNS
,/,
he/PRP
did/VBD
n't/RB
mention/VB
certain/JJ
other/JJ
of/IN
their/PRP$
effects/NNS
./.
They/PRP
divert/VBP
law-enforcement/NN
resources/NNS
at/IN
a/DT
time/NN
they/PRP
are/VBP
most/RBS
needed/VBN
for/IN
protecting/VBG
lives/NNS
and/CC
property/NN
./.
Also/RB
,/,
rather/RB
than/IN
increase/VB
supplies/NNS
,/,
they/PRP
reduce/VBP
them/PRP
and/CC
encourage/VBP
hoarding/NN
./.
And/CC
they/PRP
,/,
or/CC
even/RB
the/DT
prospect/NN
of/IN
them/PRP
,/,
discourage/VBP
disaster/NN
preparedness/NN
in/IN
the/DT
form/NN
of/IN
speculative/JJ
advance/NN
stocking/NN
of/IN
supplies/NNS
by/IN
merchants/NNS
./.
N./NNP
Joseph/NNP
Potts/NNP
Miami/NNP
Lakes/NNP
,/,
Fla/NNP
./.
Would/MD
Mr./NNP
Laband/NNP
also/RB
suggest/VB
that/IN
the/DT
Red/NNP
Cross/NNP
,/,
Salvation/NNP
Army/NNP
,/,
military/JJ
units/NNS
,/,
police/NNS
,/,
fire/NN
departments/NNS
,/,
rescue/NN
units/NNS
and/CC
individual/JJ
citizens/NNS
cease/VB
their/PRP$
efforts/NNS
to/TO
assist/VB
Hugo/NNP
's/POS
victims/NNS
because/IN
they/PRP
interfere/VBP
with/IN
his/PRP$
concept/NN
of/IN
the/DT
``/``
free/JJ
market/NN
''/''
?/.
What/WP
about/IN
those/DT
caring/JJ
people/NNS
all/RB
over/IN
the/DT
country/NN
who/WP
are/VBP
donating/VBG
food/NN
,/,
water/NN
and/CC
other/JJ
necessities/NNS
of/IN
life/NN
to/TO
these/DT
people/NNS
who/WP
could/MD
be/VB
any/DT
of/IN
us/PRP
?/.
Should/MD
they/PRP
,/,
too/RB
,/,
stop/VB
``/``
messing/VBG
with/IN
''/''
his/PRP$
free/JJ
market/NN
?/.
Maybe/RB
he/PRP
thinks/VBZ
they/PRP
should/MD
also/RB
sell/VB
to/TO
the/DT
highest/JJS
bidder/NN
./.
And/CC
what/WP
about/IN
insurance/NN
firms/NNS
?/.
Should/MD
they/PRP
be/VB
required/VBN
to/TO
pay/VB
claims/NNS
based/VBN
on/IN
exorbitant/JJ
costs/NNS
for/IN
labor/NN
and/CC
materials/NNS
?/.
Mr./NNP
Laband/NNP
should/MD
beware/VB
,/,
since/IN
he/PRP
lives/VBZ
in/IN
South/NNP
Carolina/NNP
./.
In/IN
a/DT
free/JJ
market/NN
,/,
his/PRP$
insurance/NN
rates/NNS
can/MD
be/VB
raised/VBN
to/TO
recover/VB
insurance-company/NN
losses/NNS
./.
John/NNP
W./NNP
Rush/NNP
Marietta/NNP
,/,
Ga/NNP
./.
Having/VBG
been/VBN
through/IN
several/JJ
tornadoes/NNS
and/CC
hurricanes/NNS
,/,
I/PRP
have/VBP
a/DT
different/JJ
perspective/NN
./.
Mine/PRP
comes/VBZ
from/IN
seeing/VBG
thriving/JJ
communities/NNS
devastated/VBN
--/:
but/CC
only/RB
temporarily/RB
./.
Their/PRP$
recovery/NN
came/VBD
surprisingly/RB
fast/RB
,/,
and/CC
always/RB
with/IN
the/DT
help/NN
of/IN
neighbors/NNS
./.
The/DT
shock/NN
of/IN
seeing/VBG
homes/NNS
destroyed/VBN
and/CC
city/NN
services/NNS
disrupted/VBN
may/MD
cause/VB
some/DT
to/TO
confuse/VB
priorities/NNS
such/JJ
as/IN
the/DT
true/JJ
economic/JJ
value/NN
of/IN
a/DT
freezer/NN
full/JJ
of/IN
meat/NN
./.
In/IN
Texas/NNP
after/IN
Hurricane/NNP
Alicia/NNP
,/,
major/JJ
grocery/NN
chains/NNS
used/VBD
their/PRP$
truck/NN
fleets/NNS
to/TO
ship/VB
essential/JJ
goods/NNS
to/TO
Houston/NNP
,/,
no/DT
gouging/NN
,/,
just/RB
good/JJ
will/NN
./.
Tom/NNP
Mongan/NNP
Victoria/NNP
,/,
Texas/NNP
We/PRP
here/RB
in/IN
the/DT
affected/JJ
areas/NNS
were/VBD
dazzled/VBN
by/IN
Mr./NNP
Laband/NNP
's/POS
analysis/NN
of/IN
time/NN
values/NNS
and/CC
his/PRP$
comparisons/NNS
of/IN
effectiveness/NN
concerning/VBG
research/NN
and/CC
development/NN
./.
His/PRP$
theoretical/JJ
approach/NN
and/CC
its/PRP$
publication/NN
in/IN
this/DT
venerable/JJ
paper/NN
are/VBP
no/DT
doubt/NN
a/DT
noteworthy/JJ
accomplishment/NN
for/IN
him/PRP
./.
Too/RB
bad/JJ
theory/NN
fails/VBZ
in/IN
practice/NN
./.
We/PRP
consumers/NNS
tend/VBP
to/TO
have/VB
long/JJ
memories/NNS
./.
The/DT
businesses/NNS
subscribing/VBG
to/TO
Mr./NNP
Laband/NNP
's/POS
effective/JJ
price/NN
system/NN
will/MD
be/VB
remembered/VBN
when/WRB
normalcy/NN
returns/VBZ
./.
Perhaps/RB
,/,
considering/VBG
the/DT
value/NN
of/IN
our/PRP$
time/NN
,/,
we/PRP
will/MD
be/VB
unable/JJ
to/TO
patronize/VB
their/PRP$
establishments/NNS
in/IN
the/DT
post-Hugo/JJ
era/NN
./.
I/PRP
have/VBP
a/DT
question/NN
for/IN
Mr./NNP
Laband/NNP
:/:
How/WRB
do/VB
I/PRP
explain/VB
to/TO
the/DT
single/JJ
mother/NN
of/IN
three/CD
standing/NN
in/IN
line/NN
next/JJ
to/TO
me/PRP
for/IN
the/DT
past/JJ
three/CD
hours/NNS
that/IN
the/DT
two/CD
bags/NNS
of/IN
ice/NN
she/PRP
needs/VBZ
to/TO
keep/VB
her/PRP$
children/NNS
's/POS
food/NN
edible/JJ
will/MD
take/VB
her/PRP
last/JJ
$/$
20/CD
?/.
I/PRP
'm/VBP
sure/JJ
she/PRP
'll/MD
appreciate/VB
what/WP
an/DT
efficient/JJ
reaction/NN
to/TO
her/PRP$
problems/NNS
the/DT
price/NN
system/NN
has/VBZ
created/VBN
./.
Chris/NNP
Edgar/NNP
Myrtle/NNP
Beach/NNP
,/,
S.C/NNP
./.
This/DT
seems/VBZ
to/TO
be/VB
the/DT
season/NN
for/IN
revivals/NNS
in/IN
Chicago/NNP
./.
Though/NNP
the/DT
Cubs/NNP
'/POS
championship/NN
season/NN
ended/VBD
with/IN
the/DT
National/NNP
League/NNP
playoffs/NNS
,/,
a/DT
revival/NN
of/IN
the/DT
Organic/NNP
Theater/NNP
's/POS
production/NN
of/IN
``/``
Bleacher/NN
Bums/NNS
,/,
''/''
a/DT
play/NN
in/IN
nine/CD
innings/NN
set/VBN
in/IN
the/DT
Wrigley/NNP
Field/NNP
bleachers/NNS
,/,
continues/VBZ
within/IN
spitting/NN
distance/NN
of/IN
the/DT
ballpark/NN
./.
Revivals/NNS
of/IN
a/DT
different/JJ
sort/NN
also/RB
are/VBP
being/VBG
offered/VBN
by/IN
our/PRP$
two/CD
major/JJ
theater/NN
troupes/NNS
,/,
the/DT
Goodman/NNP
and/CC
Steppenwolf/NNP
./.
Each/DT
is/VBZ
more/RBR
problematic/JJ
than/IN
an/DT
unexpected/JJ
divisional/JJ
baseball/NN
championship/NN
,/,
but/CC
both/DT
help/VBP
explain/VB
why/WRB
Chicago/NNP
remains/VBZ
a/DT
vital/JJ
center/NN
of/IN
this/DT
country/NN
's/POS
regional/JJ
theater/NN
movement/NN
./.
The/DT
Goodman/NNP
is/VBZ
offering/VBG
a/DT
modernized/JJ
version/NN
of/IN
Moliere/NNP
's/POS
``/``
The/DT
Misanthrope/NN
''/''
through/IN
Nov./NNP
4/CD
./.
The/DT
original/NN
is/VBZ
a/DT
comedy/NN
about/IN
Alceste/NNP
,/,
a/DT
man/NN
who/WP
sees/VBZ
falseness/NN
and/CC
vanity/NN
in/IN
everyone/NN
except/IN
himself/PRP
./.
He/PRP
is/VBZ
the/DT
jealous/JJ
friend/NN
of/IN
Philinte/NNP
,/,
and/CC
the/DT
jealous/JJ
lover/NN
of/IN
Celimene/NNP
./.
The/DT
play/NN
is/VBZ
filled/VBN
with/IN
intrigue/NN
,/,
dishonesty/NN
and/CC
injustice/NN
./.
Twenty-five/CD
years/NNS
ago/RB
the/DT
poet/NN
Richard/NNP
Wilbur/NNP
modernized/VBD
this/DT
17th-century/JJ
comedy/NN
merely/RB
by/IN
avoiding/VBG
``/``
the/DT
zounds/UH
sort/NN
of/IN
thing/NN
,/,
''/''
as/IN
he/PRP
wrote/VBD
in/IN
his/PRP$
introduction/NN
./.
Otherwise/RB
,/,
the/DT
scene/NN
remained/VBD
Celimene/NNP
's/POS
house/NN
in/IN
1666/CD
./.
Assuming/VBG
modern/JJ
audiences/NNS
readily/RB
understand/VBP
that/DT
Moliere/NNP
's/POS
social/JJ
indictment/NN
covers/VBZ
their/PRP$
world/NN
as/RB
well/RB
as/IN
17th-century/JJ
Paris/NNP
,/,
Mr./NNP
Wilbur/NNP
concentrated/VBD
his/PRP$
formidable/JJ
artistry/NN
on/IN
rendering/VBG
the/DT
Alexandrine/JJ
French/JJ
verse/NN
into/IN
sprightly/JJ
and/CC
theatrical/JJ
English/JJ
iambic/JJ
pentameter/NN
./.
The/DT
Wilbur/NNP
translation/NN
is/VBZ
remarkable/JJ
--/:
well/RB
worth/JJ
a/DT
read/VBN
and/CC
even/RB
better/RBR
seen/VBN
in/IN
the/DT
theater/NN
if/IN
you/PRP
ever/RB
have/VBP
the/DT
opportunity/NN
./.
But/CC
if/IN
you/PRP
happen/VBP
to/TO
be/VB
coming/VBG
to/TO
Chicago/NNP
in/IN
the/DT
next/JJ
few/JJ
weeks/NNS
,/,
do/VBP
n't/RB
fail/VB
to/TO
have/VB
a/DT
look/NN
at/IN
Robert/NNP
Falls/NNP
's/POS
``/``
The/DT
Misanthrope/NN
''/''
at/IN
the/DT
Goodman/NNP
./.
If/IN
Mr./NNP
Wilbur/NNP
's/POS
translation/NN
is/VBZ
a/DT
finely/RB
ground/VBN
lens/NN
through/IN
which/WDT
we/PRP
see/VBP
the/DT
pettiness/NN
and/CC
corruption/NN
of/IN
17th-century/JJ
Paris/NNP
,/,
Mr./NNP
Falls/NNP
's/POS
production/NN
is/VBZ
a/DT
mirror/NN
in/IN
which/WDT
we/PRP
see/VBP
ourselves/PRP
./.
Mr./NNP
Falls/NNP
,/,
the/DT
Goodman/NNP
's/POS
artistic/JJ
director/NN
,/,
took/VBD
a/DT
recent/JJ
adaptation/NN
by/IN
Neil/NNP
Bartlett/NNP
and/CC
significantly/RB
adapted/VBD
it/PRP
./.
Mr./NNP
Bartlett/NNP
had/VBD
slimmed/VBN
Moliere/NNP
's/POS
cast/NN
of/IN
characters/NNS
to/TO
six/CD
and/CC
set/VBN
them/PRP
in/IN
the/DT
London/NNP
media/NN
world/NN
of/IN
Thatcherite/JJ
Britain/NNP
./.
Mr./NNP
Falls/NNP
transfers/VBZ
the/DT
setting/NN
to/TO
Hollywood/NNP
,/,
and/CC
transforms/VBZ
the/DT
characters/NNS
into/IN
what/WP
passes/VBZ
for/IN
aristocracy/NN
there/RB
--/:
agents/NNS
,/,
producers/NNS
,/,
actors/NNS
,/,
writers/NNS
and/CC
sycophants/NNS
./.
It/PRP
works/VBZ
./.
Mr./NNP
Bartlett/NNP
managed/VBD
to/TO
more/RBR
or/CC
less/RBR
maintain/VB
Moliere/NNP
's/POS
Alexandrine/JJ
verse/NN
form/NN
,/,
12/CD
syllable/NN
lines/NNS
in/IN
rhyming/VBG
couplets/NNS
./.
Mr./NNP
Falls/NNP
kept/VBD
the/DT
form/NN
,/,
but/CC
Americanized/VBD
it/PRP
with/IN
Mr./NNP
Bartlett/NNP
's/POS
further/JJ
help/NN
./.
With/IN
a/DT
splendid/JJ
cast/NN
led/VBN
by/IN
David/NNP
Darlow/NNP
as/IN
Alceste/NNP
,/,
Christina/NNP
Haag/NNP
as/IN
Celimene/NNP
and/CC
,/,
especially/RB
,/,
William/NNP
Brown/NNP
as/IN
a/DT
Philinte/NNP
who/WP
plays/VBZ
the/DT
Hollywood/NNP
game/NN
but/CC
harbors/VBZ
authentic/JJ
values/NNS
and/CC
feelings/NNS
,/,
the/DT
Goodman/NNP
production/NN
barrels/NNS
through/IN
an/DT
all-night/JJ
Hollywood/NNP
party/NN
with/IN
exuberance/NN
and/CC
wit/NN
./.
If/IN
this/DT
version/NN
,/,
with/IN
its/PRP$
references/NNS
to/TO
Steven/NNP
Spielberg/NNP
,/,
Spago/NNP
and/CC
``/``
thirtysomething/NN
''/''
attracts/VBZ
younger/JJR
audiences/NNS
who/WP
might/MD
stay/VB
away/RB
from/IN
the/DT
classical/JJ
version/NN
,/,
then/RB
Messrs./NNPS
Bartlett/NNP
and/CC
Falls/NNP
are/VBP
justified/JJ
in/IN
abandoning/VBG
Mr./NNP
Wilbur/NNP
./.
A/DT
300-year-old/JJ
play/NN
may/MD
be/VB
easier/JJR
to/TO
revive/VB
than/IN
one/NN
merely/RB
25/CD
./.
The/DT
Steppenwolf/NNP
Theatre/NNP
Company/NNP
,/,
back/RB
from/IN
a/DT
critical/JJ
and/CC
box/NN
office/NN
success/NN
in/IN
London/NNP
with/IN
its/PRP$
adaptation/NN
of/IN
Steinbeck/NNP
's/POS
``/``
The/DT
Grapes/NNS
of/IN
Wrath/NN
,/,
''/''
opened/VBD
the/DT
new/JJ
season/NN
with/IN
Harold/NNP
Pinter/NNP
's/POS
``/``
The/DT
Homecoming/NN
,/,
''/''
first/RB
produced/VBN
by/IN
the/DT
Royal/NNP
Shakespeare/NNP
Company/NNP
in/IN
1965/CD
./.
Back/RB
then/RB
,/,
Mr./NNP
Pinter/NNP
was/VBD
not/RB
only/RB
the/DT
angry/JJ
young/JJ
British/JJ
playwright/NN
,/,
but/CC
also/RB
the/DT
first/JJ
to/TO
use/VB
silences/NNS
and/CC
sentence/NN
fragments/NNS
and/CC
menacing/JJ
stares/NNS
,/,
almost/RB
to/TO
the/DT
exclusion/NN
of/IN
what/WP
we/PRP
previously/RB
understood/VBD
to/TO
be/VB
theatrical/JJ
dialogue/NN
./.
When/WRB
``/``
The/DT
Homecoming/NN
''/''
was/VBD
first/RB
produced/VBN
on/IN
this/DT
side/NN
of/IN
the/DT
Atlantic/NNP
,/,
actors/NNS
and/CC
directors/NNS
were/VBD
reverential/JJ
./.
Silences/NNS
were/VBD
lengthy/JJ
--/:
nobody/NN
moved/VBD
or/CC
gestured/VBD
./.
Nobody/NN
smiled/VBD
onstage/RB
,/,
and/CC
nobody/NN
in/IN
the/DT
audience/NN
was/VBD
encouraged/VBN
to/TO
laugh/VB
./.
This/DT
kind/NN
of/IN
theater/NN
was/VBD
new/JJ
to/TO
us/PRP
./.
Also/RB
,/,
it/PRP
was/VBD
not/RB
a/DT
funny/JJ
time/NN
over/IN
here/RB
,/,
what/WP
with/IN
the/DT
Vietnam/NNP
War/NNP
,/,
the/DT
'68/CD
Democratic/JJ
convention/NN
,/,
assassinations/NNS
and/CC
riots/NNS
./.
But/CC
under/IN
Jerry/NNP
Perry/NNP
's/POS
direction/NN
the/DT
current/JJ
Steppenwolf/NNP
production/NN
,/,
scheduled/VBN
to/TO
play/VB
through/IN
Nov./NNP
19/CD
,/,
breaks/VBZ
through/IN
the/DT
flat/JJ
and/CC
boring/JJ
ritual/NN
that/IN
``/``
The/DT
Homecoming/NN
''/''
had/VBD
become/VBN
./.
Led/VBN
by/IN
a/DT
near-perfect/JJ
performance/NN
by/IN
Alan/NNP
Wilder/NNP
as/IN
Max/NNP
,/,
the/DT
father/NN
,/,
the/DT
play/NN
is/VBZ
at/IN
once/RB
an/DT
appalling/JJ
and/CC
hilarious/JJ
dissection/NN
of/IN
a/DT
family/NN
's/POS
rage/NN
,/,
bitterness/NN
,/,
fear/NN
and/CC
isolation/NN
./.
Encouraged/VBN
by/IN
Mr./NNP
Wilder/NNP
's/POS
sly/JJ
grins/NNS
,/,
embarrassed/JJ
grimaces/NNS
and/CC
sputtering/JJ
rages/NNS
,/,
the/DT
audience/NN
gets/VBZ
the/DT
joke/NN
and/CC
begins/VBZ
to/TO
laugh/VB
before/IN
the/DT
end/NN
of/IN
the/DT
first/JJ
act/NN
./.
Three/CD
of/IN
the/DT
family/NN
members/NNS
,/,
Max/NNP
and/CC
his/PRP$
two/CD
sons/NNS
,/,
Lenny/NNP
and/CC
Joey/NNP
,/,
live/VBP
off/IN
the/DT
flesh/NN
:/:
Max/NNP
is/VBZ
a/DT
retired/JJ
butcher/NN
,/,
Lenny/NNP
a/DT
pimp/NN
and/CC
Joey/NNP
an/DT
aspiring/JJ
boxer/NN
./.
Sam/NNP
,/,
Max/NNP
's/POS
brother/NN
,/,
has/VBZ
escaped/VBN
the/DT
flesh/NN
by/IN
working/VBG
as/IN
a/DT
liveried/JJ
chauffeur/NN
and/CC
never/RB
seeking/VBG
a/DT
wife/NN
./.
Teddy/NNP
,/,
the/DT
eldest/JJS
of/IN
Max/NNP
's/POS
sons/NNS
,/,
has/VBZ
made/VBN
the/DT
most/RBS
dramatic/JJ
escape/NN
by/IN
becoming/VBG
a/DT
professor/NN
of/IN
philosophy/NN
at/IN
an/DT
American/JJ
university/NN
./.
Though/IN
it/PRP
's/VBZ
clearly/RB
Max/NNP
's/POS
wife/NN
who/WP
held/VBD
sway/NN
here/RB
until/IN
her/PRP$
death/NN
,/,
now/RB
none/NN
of/IN
the/DT
other/JJ
male/JJ
residents/NNS
of/IN
this/DT
misbegotten/JJ
household/NN
can/MD
challenge/VB
Max/NNP
./.
The/DT
play/NN
concerns/VBZ
Teddy/NNP
's/POS
homecoming/NN
with/IN
his/PRP$
wife/NN
of/IN
six/CD
years/NNS
,/,
Ruth/NNP
./.
Curiously/NNP
,/,
Randall/NNP
Arney/NNP
as/IN
Teddy/NNP
seems/VBZ
the/DT
only/JJ
cast/NN
member/NN
unable/JJ
to/TO
get/VB
beyond/IN
the/DT
zombie/NN
approach/NN
to/TO
a/DT
Pinter/NNP
character/NN
./.
As/IN
Ruth/NNP
,/,
Moira/NNP
Harris/NNP
,/,
a/DT
large/JJ
and/CC
beautiful/JJ
woman/NN
who/WP
may/MD
be/VB
our/PRP$
next/JJ
Colleen/NNP
Dewhurst/NNP
,/,
begins/VBZ
almost/RB
immediately/RB
to/TO
overpower/VB
each/DT
of/IN
the/DT
men/NNS
./.
In/IN
the/DT
end/NN
,/,
Teddy/NNP
returns/VBZ
alone/RB
to/TO
America/NNP
,/,
leaving/VBG
Ruth/NNP
in/IN
Max/NNP
's/POS
chair/NN
./.
We/PRP
have/VBP
seen/VBN
her/PRP
develop/VB
within/IN
a/DT
few/JJ
hours/NNS
from/IN
a/DT
shy/JJ
and/CC
unknown/JJ
in-law/NN
to/TO
a/DT
goddess/NN
of/IN
the/DT
flesh/NN
who/WP
will/MD
replace/VB
the/DT
dead/JJ
mother/NN
,/,
and/CC
then/RB
some/RB
./.
While/IN
Steppenwolf/NNP
was/VBD
in/IN
London/NNP
with/IN
``/``
The/DT
Grapes/NNS
of/IN
Wrath/NN
,/,
''/''
Bruce/NNP
Sagan/NNP
,/,
the/DT
president/NN
of/IN
its/PRP$
board/NN
of/IN
directors/NNS
,/,
quietly/RB
returned/VBD
to/TO
Chicago/NNP
to/TO
buy/VB
a/DT
piece/NN
of/IN
real/JJ
estate/NN
in/IN
the/DT
city/NN
's/POS
rapidly/RB
reviving/VBG
North/NNP
Halsted/NNP
Street/NNP
restaurant/NN
and/CC
theater/NN
district/NN
./.
Within/IN
a/DT
year/NN
he/PRP
hopes/VBZ
Steppenwolf/NNP
will/MD
move/VB
into/IN
a/DT
new/JJ
500-seat/JJ
theater/NN
on/IN
that/DT
site/NN
./.
The/DT
troupe/NN
currently/RB
performs/VBZ
in/IN
a/DT
converted/JJ
dairy/NN
that/WDT
seats/VBZ
211/CD
and/CC
provides/VBZ
little/JJ
capacity/NN
for/IN
staging/VBG
anything/NN
beyond/IN
a/DT
simple/JJ
one-set/JJ
production/NN
./.
``/``
If/IN
we/PRP
wanted/VBD
to/TO
stage/VB
`/``
Death/NN
of/IN
a/DT
Salesman/NN
,/,
'/''
``/``
Mr./NNP
Sagan/NNP
says/VBZ
,/,
``/``
Willie/NNP
Loman/NNP
would/MD
have/VB
to/TO
live/VB
in/IN
a/DT
ranch/NN
house/NN
because/IN
of/IN
the/DT
low/JJ
ceiling/NN
./.
''/''
Steppenwolf/NNP
needs/VBZ
the/DT
extra/JJ
seats/NNS
even/RB
more/RBR
than/IN
the/DT
fly/NN
space/NN
./.
It/PRP
's/VBZ
currently/RB
forced/VBN
to/TO
turn/VB
away/RP
many/JJ
potential/JJ
subscribers/NNS
beyond/IN
the/DT
13,000/CD
who/WP
can/MD
be/VB
accommodated/VBN
in/IN
its/PRP$
present/JJ
digs/NNS
./.
For/IN
all/PDT
the/DT
attention/NN
that/IN
Chicago/NNP
theater/NN
has/VBZ
received/VBN
during/IN
the/DT
past/NN
decade/NN
,/,
not/RB
one/CD
new/JJ
building/NN
has/VBZ
been/VBN
devoted/VBN
to/TO
it/PRP
./.
Mr./NNP
Sagan/NNP
,/,
a/DT
former/JJ
publisher/NN
and/CC
real/JJ
estate/NN
developer/NN
,/,
has/VBZ
put/VBN
together/RB
an/DT
$/$
8/CD
million/CD
financial/JJ
package/NN
that/WDT
includes/VBZ
approximately/RB
$/$
4/CD
million/CD
of/IN
tax/NN
exempt/JJ
bonds/NNS
issued/VBN
by/IN
the/DT
State/NNP
of/IN
Illinois/NNP
the/DT
first/JJ
time/NN
that/IN
a/DT
state/NN
has/VBZ
used/VBN
its/PRP$
educational/JJ
facilities/NNS
authority/NN
to/TO
support/VB
construction/NN
of/IN
a/DT
theater/NN
$/$
1/CD
million/CD
in/IN
grants/NNS
from/IN
the/DT
National/NNP
Endowment/NNP
for/IN
the/DT
Arts/NNP
,/,
the/DT
MacArthur/NNP
Foundation/NNP
,/,
and/CC
a/DT
few/JJ
other/JJ
deep/JJ
pockets/NNS
./.
The/DT
rest/NN
,/,
he/PRP
is/VBZ
confident/JJ
,/,
can/MD
be/VB
raised/VBN
./.
His/PRP$
board/NN
members/NNS
alone/RB
have/VBP
pledged/VBN
$/$
800,000/CD
and/CC
he/PRP
is/VBZ
just/RB
beginning/VBG
to/TO
massage/VB
local/JJ
foundations/NNS
and/CC
corporations/NNS
./.
Mr./NNP
Sagan/NNP
compares/VBZ
the/DT
importance/NN
of/IN
Steppenwolf/NNP
with/IN
Orson/NNP
Welles/NNP
's/POS
Mercury/NNP
Theater/NNP
in/IN
the/DT
'30s/NNS
./.
But/CC
Welles/NNP
's/POS
theater/NN
company/NN
turned/VBD
out/RP
to/TO
have/VB
a/DT
brief/JJ
--/:
one/PRP
might/MD
say/VB
a/DT
mercurial/JJ
--/:
existence/NN
./.
What/WP
will/MD
Mr./NNP
Sagan/NNP
do/VB
with/IN
his/PRP$
new/JJ
theater/NN
building/NN
if/IN
the/DT
allure/NN
of/IN
Hollywood/NNP
and/CC
Broadway/NNP
proves/VBZ
too/RB
much/RB
for/IN
such/JJ
Steppenwolf/NNP
stalwarts/NNS
as/IN
John/NNP
Malkovich/NNP
``/``
Dangerous/JJ
Liaisons/NNS
''/''
)/)
,/,
Joan/NNP
Allen/NNP
``/``
The/DT
Heidi/NNP
Chronicles/NNS
''/''
)/)
,/,
and/CC
Glenne/NNP
Headly/NNP
``/``
Lonesome/JJ
Dove/NN
''/''
)/)
,/,
and/CC
the/DT
company/NN
crumbles/VBZ
?/.
``/``
That/DT
's/VBZ
OK/JJ
,/,
''/''
Mr./NNP
Sagan/NNP
replies/VBZ
./.
``/``
Let/VB
this/DT
building/NN
be/VB
Steppenwolf/NNP
's/POS
legacy/NN
to/TO
Chicago/NNP
theater/NN
./.
''/''
Mr./NNP
Henning/NNP
is/VBZ
a/DT
Chicago-based/JJ
law/NN
firm/NN
management/NN
consultant/NN
and/CC
a/DT
writer/NN
./.
After/IN
enduring/VBG
three/CD
days/NNS
of/IN
heavy/JJ
selling/NN
,/,
the/DT
beleaguered/JJ
Nasdaq/NNP
over-the-counter/JJ
market/NN
finally/RB
rebounded/VBD
,/,
rising/VBG
sharply/RB
in/IN
hearty/JJ
trading/NN
./.
The/DT
Nasdaq/NNP
Composite/NNP
Index/NNP
jumped/VBD
0.7/CD
%/NN
,/,
or/CC
3.35/CD
,/,
to/TO
463.28/CD
./.
It/PRP
rose/VBD
more/RBR
than/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
Composite/NNP
,/,
which/WDT
improved/VBD
0.2/CD
%/NN
./.
Among/IN
bigger/JJR
stocks/NNS
,/,
the/DT
Nasdaq/NNP
100/CD
Index/NNP
rose/VBD
1/CD
%/NN
,/,
or/CC
4.56/CD
,/,
to/TO
453.05/CD
,/,
while/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
was/VBD
up/RB
0.2/CD
%/NN
./.
Richard/NNP
Bruno/NNP
,/,
head/NN
of/IN
OTC/NNP
trading/NN
at/IN
PaineWebber/NNP
,/,
said/VBD
the/DT
OTC/NNP
market/NN
has/VBZ
a/DT
habit/NN
of/IN
lagging/VBG
big/JJ
moves/NNS
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
While/IN
the/DT
industrial/JJ
average/NN
rallied/VBD
on/IN
Monday/NNP
following/VBG
last/JJ
Friday/NNP
's/POS
collapse/NN
,/,
the/DT
OTC/NNP
market/NN
,/,
which/WDT
did/VBD
n't/RB
suffer/VB
too/RB
badly/RB
during/IN
the/DT
correction/NN
,/,
tumbled/VBD
./.
``/``
Our/PRP$
market/NN
got/VBD
hit/VB
a/DT
lot/NN
harder/RBR
on/IN
Monday/NNP
than/IN
the/DT
listed/JJ
market/NN
,/,
''/''
Mr./NNP
Bruno/NNP
said/VBD
./.
``/``
We/PRP
're/VBP
just/RB
recovering/VBG
and/CC
getting/VBG
back/RB
to/TO
business/NN
as/RB
usual/JJ
./.
I/PRP
'm/VBP
encouraged/VBN
by/IN
the/DT
action/NN
./.
''/''
The/DT
trading/NN
pace/NN
was/VBD
busy/JJ
,/,
with/IN
4,343/CD
issues/NNS
and/CC
147.6/CD
million/CD
shares/NNS
changing/VBG
hands/NNS
./.
Advancing/VBG
issues/NNS
beat/VBP
declining/VBG
ones/NNS
,/,
1,271/CD
to/TO
811/CD
./.
Much/JJ
of/IN
the/DT
jockeying/NN
by/IN
OTC/NNP
traders/NNS
and/CC
investors/NNS
centered/VBD
on/IN
shares/NNS
of/IN
companies/NNS
that/WDT
might/MD
be/VB
financially/RB
affected/VBN
by/IN
damage/NN
from/IN
the/DT
devastating/JJ
earthquake/NN
in/IN
northern/JJ
California/NNP
./.
As/IN
investors/NNS
speculated/VBD
about/IN
the/DT
long/JJ
short-term/JJ
implications/NNS
,/,
shares/NNS
of/IN
a/DT
number/NN
of/IN
companies/NNS
that/WDT
might/MD
either/CC
profit/VB
or/CC
face/VB
problems/NNS
because/IN
of/IN
the/DT
disaster/NN
were/VBD
actively/RB
traded/VBN
./.
Heading/VBG
the/DT
list/NN
:/:
insurance/NN
,/,
construction/NN
and/CC
technology/NN
companies/NNS
located/VBN
in/IN
the/DT
San/NNP
Francisco/NNP
Bay/NNP
Area/NNP
./.
Insurance-related/JJ
stocks/NNS
were/VBD
mixed/JJ
as/IN
investors/NNS
tried/VBD
to/TO
figure/VB
out/RP
how/WRB

to/TO
assess/VB
the/DT
impact/NN
of/IN
the/DT
property/NN
damage/NN
and/CC
deaths/NNS
on/IN
those/DT
concerns/NNS
./.
Traders/NNS
said/VBD
property-casualty/JJ
companies/NNS
with/IN
the/DT
heaviest/JJS
exposure/NN
in/IN
the/DT
San/NNP
Francisco/NNP
area/NN
include/VBP
the/DT
OTC/NNP
's/POS
Safeco/NNP
and/CC
Ohio/NNP
Casualty/NNP
./.
Frank/NNP
Gilmartin/NNP
,/,
a/DT
trader/NN
who/WP
follows/VBZ
insurance/NN
stocks/NNS
for/IN
Fox-Pitt/NNP
Kelton/NNP
,/,
said/VBD
his/PRP$
strategy/NN
was/VBD
to/TO
sell/VB
early/RB
./.
Then/RB
,/,
if/IN
the/DT
stocks/NNS
fell/VBD
sharply/RB
,/,
he/PRP
planned/VBD
to/TO
begin/VB
buying/VBG
them/PRP
aggressively/RB
,/,
on/IN
the/DT
theory/NN
that/IN
the/DT
companies/NNS
that/WDT
insure/VBP
against/IN
property/NN
damage/NN
and/CC
accidents/NNS
will/MD
have/VB
to/TO
raise/VB
rates/NNS
eventually/RB
to/TO
compensate/VB
for/IN
the/DT
claims/NNS
they/PRP
will/MD
pay/VB
to/TO
earthquake/NN
victims/NNS
and/CC
victims/NNS
of/IN
last/JJ
month/NN
's/POS
Hurricane/NNP
Hugo/NNP
./.
As/RB
well/RB
,/,
reinsurers/NNS
and/CC
insurance/NN
brokerage/NN
companies/NNS
will/MD
have/VB
improved/JJ
profits/NNS
./.
Many/JJ
investors/NNS
expected/VBD
damage/NN
from/IN
the/DT
hurricane/NN
to/TO
be/VB
the/DT
catalyst/NN
for/IN
higher/JJR
rates/NNS
in/IN
the/DT
industry/NN
,/,
which/WDT
has/VBZ
been/VBN
depressed/VBN
because/IN
of/IN
low/JJ
rates/NNS
arising/VBG
from/IN
intense/JJ
competition/NN
./.
But/CC
Mr./NNP
Gilmartin/NNP
said/VBD
the/DT
hurricane/NN
damage/NN
was/VBD
n't/RB
extensive/JJ
enough/RB
to/TO
prompt/VB
premium/NN
boosts/NNS
./.
``/``
The/DT
companies/NNS
just/RB
gave/VBD
back/RP
what/WP
they/PRP
had/VBD
reserved/VBN
for/IN
,/,
''/''
he/PRP
said/VBD
./.
``/``
Now/RB
,/,
they/PRP
'll/MD
have/VB
to/TO
increase/VB
their/PRP$
coffers/NNS
to/TO
protect/VB
for/IN
the/DT
future/NN
and/CC
that/DT
means/VBZ
rate/NN
increases/NNS
./.
''/''
Overall/JJ
OTC/NNP
insurance/NN
issues/NNS
were/VBD
mixed/JJ
./.
Safeco/NNP
fell/VBD
1\/8/CD
to/TO
32/CD
5\/8/CD
on/IN
462,900/CD
shares/NNS
./.
Ohio/NNP
Casualty/NNP
rose/VBD
1\/4/CD
to/TO
51/CD
3\/4/CD
on/IN
137,200/CD
shares/NNS
./.
St./NNP
Paul/NNP
Cos./NNP
jumped/VBD
2/CD
to/TO
59/CD
3\/4/CD
on/IN
517,500/CD
shares/NNS
./.
Academy/NNP
Insurance/NNP
fell/VBD
1\/32/CD
to/TO
1/CD
3\/16/CD
;/:
but/CC
volume/NN
totaled/VBD
1.2/CD
million/CD
shares/NNS
./.
The/DT
Nasdaq/NNP
Insurance/NNP
Index/NNP
jumped/VBD
4.15/CD
to/TO
529.32/CD
on/IN
the/DT
day/NN
,/,
while/IN
the/DT
barometer/NN
of/IN
big/JJ
insurance/NN
and/CC
banking/NN
issues/NNS
climbed/VBD
1.72/CD
to/TO
455.29/CD
./.
Investors/NNS
expect/VBP
SunGard/NNP
Data/NNP
Systems/NNP
,/,
a/DT
company/NN
that/WDT
provides/VBZ
disaster/NN
recovery/NN
services/NNS
for/IN
computer-dependent/JJ
businesses/NNS
,/,
to/TO
profit/VB
from/IN
the/DT
earthquake/NN
./.
SunGard/NNP
's/POS
stock/NN
rose/VBD
1/CD
3\/4/CD
to/TO
21/CD
1\/4/CD
on/IN
194,000/CD
shares/NNS
./.
Shares/NNP
of/IN
Kasler/NNP
,/,
a/DT
California/NNP
road/NN
and/CC
bridge/NN
builder/NN
,/,
were/VBD
heavily/RB
traded/VBN
,/,
jumping/VBG
2/CD
1\/8/CD
to/TO
9/CD
7\/8/CD
on/IN
1.3/CD
million/CD
shares/NNS
./.
Guy/NNP
F./NNP
Atkinson/NNP
added/VBD
7\/8/CD
to/TO
16/CD
7\/8/CD
,/,
on/IN
335,700/CD
shares/NNS
./.
The/DT
company/NN
,/,
based/VBN
in/IN
San/NNP
Francisco/NNP
,/,
provides/VBZ
industrial/JJ
infrastructure/NN
engineering/NN
and/CC
construction/NN
services/NNS
./.
Traders/NNS
were/VBD
initially/RB
nervous/JJ
about/IN
shares/NNS
of/IN
companies/NNS
,/,
including/VBG
many/JJ
leading/JJ
OTC/NNP
computer/NN
companies/NNS
,/,
such/JJ
as/IN
Apple/NNP
Computer/NNP
with/IN
offices/NNS
in/IN
the/DT
vicinity/NN
of/IN
the/DT
area/NN
damaged/VBN
by/IN
the/DT
quake/NN
./.
But/CC
most/JJS
of/IN
those/DT
stocks/NNS
fared/VBD
well/RB
./.
Apple/NNP
Computer/NNP
gained/VBD
1/CD
to/TO
48/CD
1\/4/CD
;/:
Ashton-Tate/NNP
rose/VBD
3\/8/CD
to/TO
10/CD
3\/8/CD
./.
Intel/NNP
also/RB
added/VBD
3\/8/CD
to/TO
33/CD
7\/8/CD
./.
But/CC
Sun/NNP
Microsystems/NNP
slipped/VBD
1\/4/CD
to/TO
17/CD
1\/4/CD
./.
Shares/NNS
of/IN
biotechnology/NN
companies/NNS
in/IN
the/DT
area/NN
were/VBD
also/RB
higher/JJR
./.
Chiron/NNP
was/VBD
up/RB
1\/2/CD
to/TO
27/CD
and/CC
Cetus/NNP
gained/VBD
1\/2/CD
to/TO
16/CD
3\/8/CD
./.
The/DT
stocks/NNS
of/IN
computer-related/JJ
companies/NNS
located/VBN
outside/IN
California/NNP
improved/VBD
,/,
too/RB
./.
Microsoft/NNP
advanced/VBD
1/CD
7\/8/CD
to/TO
80/CD
1\/2/CD
and/CC
Lotus/NNP
Development/NNP
added/VBD
1/CD
1\/4/CD
to/TO
32/CD
1\/2/CD
./.
In/IN
other/JJ
earthquake-related/JJ
news/NN
,/,
Hambrecht/NNP
&/CC
Quist/NNP
's/POS
OTC/NNP
market/NN
makers/NNS
were/VBD
excused/VBN
from/IN
trading/NN
yesterday/NN
and/CC
its/PRP$
positions/NNS
were/VBD
frozen/VBN
for/IN
the/DT
day/NN
by/IN
the/DT
National/NNP
Association/NNP
of/IN
Securities/NNP
Dealers/NNP
./.
Power/NN
could/MD
n't/RB
be/VB
restored/VBN
at/IN
the/DT
company/NN
's/POS
San/NNP
Francisco/NNP
headquarters/NNS
to/TO
allow/VB
trading/NN
yesterday/NN
morning/NN
./.
In/IN
New/NNP
York/NNP
,/,
Roger/NNP
Killion/NNP
,/,
a/DT
Hambrecht/NNP
executive/JJ
vice/NN
president/NN
,/,
said/VBD
he/PRP
expects/VBZ
OTC/NNP
trading/NN
at/IN
the/DT
company/NN
to/TO
resume/VB
this/DT
morning/NN
,/,
either/CC
in/IN
New/NNP
York/NNP
or/CC
in/IN
San/NNP
Francisco/NNP
./.
In/IN
other/JJ
trading/NN
,/,
Medco/NNP
Containment/NNP
Services/NNP
gained/VBD
7\/8/CD
to/TO
15/CD
on/IN
1.9/CD
million/CD
shares/NNS
after/IN
reporting/VBG
a/DT
loss/NN
for/IN
the/DT
first/JJ
quarter/NN
,/,
which/WDT
ended/VBD
Sept./NNP
30/CD
./.
The/DT
company/NN
earned/VBD
$/$
6.6/CD
million/CD
in/IN
the/DT
year-earlier/JJ
quarter/NN
./.
Jaguar/NNP
's/POS
American/JJ
depositary/JJ
receipts/NNS
added/VBD
3\/8/CD
to/TO
10/CD
3\/4/CD
on/IN
volume/NN
of/IN
1.1/CD
million/CD
./.
Analysts/NNS
in/IN
London/NNP
believe/VBP
investors/NNS
,/,
despite/IN
their/PRP$
stampede/NN
to/TO
dump/VB
takeover/NN
stocks/NNS
,/,
should/MD
hold/VB
on/RP
tight/RB
to/TO
their/PRP$
Jaguar/NNP
shares/NNS
,/,
this/DT
newspaper/NN
's/POS
Heard/VBN
on/IN
the/DT
Street/NN
column/NN
said/VBD
yesterday/NN
./.
Amgen/NNP
rose/VBD
1/CD
1\/2/CD
to/TO
50/CD
3\/4/CD
in/IN
heavy/JJ
trading/NN
./.
Analysts/NNS
figure/VBP
Amgen/NNP
could/MD
benefit/VB
as/IN
a/DT
result/NN
of/IN
troubles/NNS
facing/VBG
its/PRP$
competitor/NN
,/,
Genetics/NNP
Institute/NNP
,/,
over/IN
the/DT
anti-anemia/NN
drug/NN
EPO/NNP
./.
Genetics/NNP
Institute/NNP
disclosed/VBD
recently/RB
that/IN
it/PRP
is/VBZ
embroiled/VBN
in/IN
a/DT
dispute/NN
with/IN
Boehringer/NNP
Mannheim/NNP
,/,
which/WDT
distributes/VBZ
the/DT
drug/NN
,/,
regarding/VBG
the/DT
usability/NN
of/IN
some/DT
batches/NNS
./.
Ciba-Geigy/NNP
Ltd./NNP
and/CC
Chiron/NNP
Corp./NNP
said/VBD
they/PRP
extended/VBD
their/PRP$
offer/NN
for/IN
Connaught/NNP
BioSciences/NNP
Inc./NNP
,/,
valued/VBN
at/IN
866/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
736/CD
million/CD
Oct./NNP
27/CD
./.
The/DT
companies/NNS
earlier/RBR
said/VBD
they/PRP
did/VBD
n't/RB
want/VB
to/TO
raise/VB
their/PRP$
offer/NN
to/TO
match/VB
a/DT
rival/JJ
bid/NN
by/IN
Institut/NNP
Merieux/NNP
S.A./NNP
of/IN
C$/$
37/CD
a/DT
share/NN
,/,
or/CC
C$/$
942/CD
million/CD
./.
But/CC
they/PRP
said/VBD
the/DT
C$/$
30-a-share/JJ
bid/NN
,/,
which/WDT
was/VBD
due/JJ
to/TO
expire/VB
Monday/NNP
,/,
may/MD
still/RB
be/VB
extended/VBN
or/CC
varied/VBN
./.
Merieux/NNP
,/,
a/DT
vaccine/NN
manufacturer/NN
based/VBN
in/IN
Lyon/NNP
,/,
France/NNP
,/,
is/VBZ
51%-held/JJ
by/IN
French/JJ
state-owned/JJ
Rhone-Poulenc/NNP
S.A/NNP
./.
Ciba-Geigy/NNP
is/VBZ
a/DT
major/JJ
pharmaceutical/JJ
concern/NN
based/VBN
in/IN
Basel/NNP
,/,
Switzerland/NNP
./.
Chiron/NNP
,/,
another/DT
pharmaceutical/JJ
concern/NN
,/,
is/VBZ
based/VBN
in/IN
Emeryville/NNP
,/,
Calif/NNP
./.
Connaught/NNP
is/VBZ
a/DT
biotechnology/NN
research/NN
and/CC
vaccine/NN
manufacturing/NN
concern/NN
./.
Institut/NNP
Merieux/NNP
's/POS
bid/NN
for/IN
Toronto-based/JJ
Connaught/NNP
has/VBZ
run/VBN
into/IN
problems/NNS
with/IN
the/DT
Canadian/JJ
government/NN
,/,
which/WDT
told/VBD
Merieux/NNP
last/JJ
week/NN
that/IN
it/PRP
was/VBD
n't/RB
convinced/VBN
that/IN
the/DT
proposed/JJ
acquisition/NN
would/MD
be/VB
of/IN
``/``
net/JJ
benefit/NN
''/''
to/TO
Canada/NNP
./.
Merieux/NNP
officials/NNS
are/VBP
expected/VBN
to/TO
meet/VB
with/IN
federal/JJ
officials/NNS
in/IN
Ottawa/NNP
today/NN
to/TO
discuss/VB
the/DT
decision/NN
./.
Within/IN
minutes/NNS
after/IN
the/DT
stock/NN
market/NN
closed/VBN
Friday/NNP
,/,
I/PRP
called/VBD
Sen./NNP
Bill/NNP
Bradley/NNP
of/IN
New/NNP
Jersey/NNP
,/,
advised/VBD
him/PRP
that/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
had/VBD
declined/VBN
by/IN
190/CD
points/NNS
late/RB
that/DT
afternoon/NN
,/,
and/CC
cheerfully/RB
informed/VBD
him/PRP
that/IN
he/PRP
and/CC
his/PRP$
fellow/JJ
Democrats/NNPS
were/VBD
to/TO
blame/VB
./.
They/PRP
had/VBD
dealt/VBN
a/DT
major/JJ
setback/NN
that/DT
afternoon/NN
to/TO
President/NNP
Bush/NNP
's/POS
capital-gains/NNS
tax/NN
cut/NN
proposal/NN
,/,
which/WDT
had/VBD
seemed/VBN
in/IN
the/DT
bag/NN
after/IN
it/PRP
passed/VBD
the/DT
House/NN
overwhelmingly/RB
earlier/RBR
in/IN
the/DT
month/NN
./.
Sen./NNP
Bradley/NNP
has/VBZ
it/PRP
in/IN
his/PRP$
mind/NN
that/IN
such/PDT
a/DT
tax/NN
cut/NN
would/MD
unravel/VB
the/DT
tax/NN
reform/NN
he/PRP
helped/VBD
engineer/VB
in/IN
1986/CD
./.
But/CC
he/PRP
knows/VBZ
that/IN
as/RB
many/JJ
as/IN
20/CD
of/IN
his/PRP$
fellow/JJ
Democrats/NNPS
are/VBP
disposed/VBN
to/TO
vote/VB
for/IN
the/DT
cut/NN
,/,
popular/JJ
among/IN
their/PRP$
constituents/NNS
./.
As/IN
a/DT
result/NN
,/,
he/PRP
took/VBD
the/DT
lead/NN
in/IN
arguing/VBG
that/IN
the/DT
cut/NN
should/MD
be/VB
blocked/VBN
on/IN
procedural/JJ
grounds/NNS
./.
He/PRP
helped/VBD
persuade/VB
10/CD
of/IN
these/DT
senators/NNS
to/TO
support/VB
him/PRP
and/CC
Majority/NNP
Leader/NNP
George/NNP
Mitchell/NNP
on/IN
these/DT
grounds/NNS
./.
The/DT
budget/NN
reconciliation/NN
had/VBD
to/TO
be/VB
dealt/VBN
with/IN
by/IN
the/DT
Oct./NNP
15/CD
deadline/NN
,/,
and/CC
these/DT
Senate/NNP
Democrats/NNPS
refused/VBD
to/TO
agree/VB
to/TO
allow/VB
a/DT
vote/NN
to/TO
append/VB
capital/NN
gains/NNS
to/TO
the/DT
budget/NN
bill/NN
,/,
knowing/VBG
it/PRP
would/MD
pass/VB
./.
Denied/VBN
a/DT
vote/NN
on/IN
substance/NN
,/,
the/DT
GOP/NNP
leadership/NN
in/IN
the/DT
Senate/NNP
on/IN
Friday/NNP
morning/NN
was/VBD
confronted/VBN
with/IN
a/DT
hard/JJ
choice/NN
./.
It/PRP
could/MD
throw/VB
in/IN
the/DT
towel/NN
and/CC
hope/VB
to/TO
win/VB
on/IN
capital/NN
gains/NNS
late/RB
this/DT
month/NN
,/,
or/CC
it/PRP
could/MD
follow/VB
the/DT
White/NNP
House/NNP
strategy/NN
,/,
to/TO
veto/VB
reconciliation/NN
unless/IN
capital/JJ
gains/NNS
was/VBD
appended/VBN
./.
The/DT
U.S./NNP
Chamber/NNP
of/IN
Commerce/NNP
has/VBZ
been/VBN
in/IN
the/DT
forefront/NN
in/IN
supporting/VBG
the/DT
Bush/NNP
proposal/NN
./.
It/PRP
endorsed/VBD
the/DT
White/NNP
House/NNP
strategy/NN
,/,
believing/VBG
it/PRP
to/TO
be/VB
the/DT
surest/JJS
way/NN
to/TO
victory/NN
./.
At/IN
noon/NN
Friday/NNP
,/,
a/DT
senior/JJ
White/NNP
House/NNP
official/NN
advised/VBD
Richard/NNP
Rahn/NNP
,/,
the/DT
Chamber/NNP
's/POS
chief/JJ
economist/NN
,/,
that/IN
the/DT
White/NNP
House/NNP
would/MD
not/RB
agree/VB
to/TO
a/DT
budget/NN
reconciliation/NN
bill/NN
unless/IN
it/PRP
had/VBD
firm/JJ
assurances/NNS
that/IN
a/DT
vote/NN
on/IN
substance/NN
would/MD
be/VB
permitted/VBN
in/IN
the/DT
Senate/NNP
./.
Two/CD
hours/NNS
later/RB
,/,
the/DT
first/JJ
word/NN
emerged/VBD
on/IN
Capitol/NNP
Hill/NNP
that/IN
the/DT
administration/NN
had/VBD
agreed/VBN
to/TO
reconciliation/NN
with/IN
no/DT
such/JJ
assurances/NNS
from/IN
Senate/NNP
Democrats/NNPS
./.
Mr./NNP
Rahn/NNP
was/VBD
shocked/JJ
,/,
telephoning/VBG
the/DT
office/NN
of/IN
Richard/NNP
Darman/NNP
,/,
director/NN
of/IN
the/DT
Office/NNP
of/IN
Management/NNP
and/CC
Budget/NNP
,/,
and/CC
the/DT
administration/NN
's/POS
chief/JJ
strategist/NN
on/IN
this/DT
issue/NN
./.
He/PRP
left/VBD
a/DT
message/NN
accusing/VBG
Mr./NNP
Darman/NNP
of/IN
selling/VBG
out/RP
./.
It/PRP
was/VBD
the/DT
Senate/NNP
Republicans/NNPS
,/,
though/RB
,/,
who/WP
had/VBD
edged/VBN
away/RB
from/IN
the/DT
veto/NN
strategy/NN
./.
The/DT
stock/NN
market/NN
reacted/VBD
as/IN
Mr./NNP
Rahn/NNP
did/VBD
,/,
crumbling/VBG
as/IN
it/PRP
absorbed/VBD
the/DT
news/NN
that/IN
Mr./NNP
Darman/NNP
's/POS
strategy/NN
had/VBD
been/VBN
abandoned/VBN
./.
The/DT
stock/NN
market/NN
,/,
after/IN
all/DT
,/,
represents/VBZ
the/DT
collective/JJ
expectations/NNS
about/IN
the/DT
value/NN
of/IN
the/DT
future/JJ
income/NN
stream/NN
of/IN
the/DT
nation/NN
's/POS
capital/NN
stock/NN
,/,
discounted/VBD
to/TO
present/JJ
value/NN
./.
Why/WRB
should/MD
it/PRP
be/VB
so/RB
surprising/JJ
that/IN
a/DT
30/CD
%/NN
cut/NN
in/IN
the/DT
capital-gains/NNS
tax/NN
would/MD
have/VB
such/PDT
an/DT
enormous/JJ
impact/NN
on/IN
the/DT
value/NN
of/IN
the/DT
nation/NN
's/POS
capital/NN
stock/NN
?/.
The/DT
total/JJ
value/NN
of/IN
privately/RB
held/VBN
assets/NNS
is/VBZ
easily/RB
more/JJR
than/IN
$/$
15/CD
trillion/CD
./.
The/DT
value/NN
traded/VBN
on/IN
the/DT
exchanges/NNS
is/VBZ
close/RB
to/TO
$/$
3/CD
trillion/CD
./.
If/IN
the/DT
tax/NN
on/IN
any/DT
gain/NN
to/TO
those/DT
assets/NNS
was/VBD
doubled/VBN
,/,
would/MD
n't/RB
the/DT
value/NN
fall/VB
to/TO
the/DT
owners/NNS
of/IN
the/DT
assets/NNS
?/.
Is/VBZ
n't/RB
it/PRP
reasonable/JJ
to/TO
assume/VB
that/IN
the/DT
asset/NN
you/PRP
own/VBP
would/MD
be/VB
worth/JJ
more/JJR
if/IN
the/DT
government/NN
suddenly/RB
announced/VBD
that/IN
if/IN
you/PRP
sold/VBD
it/PRP
,/,
you/PRP
would/MD
be/VB
able/JJ
to/TO
keep/VB
30/CD
%/NN
more/JJR
of/IN
its/PRP$
gain/NN
than/IN
you/PRP
previously/RB
believed/VBD
?/.
Indeed/RB
,/,
the/DT
stock/NN
market/NN
's/POS
steady/JJ
advance/NN
this/DT
year/NN
tracked/VBD
with/IN
President/NNP
Bush/NNP
's/POS
success/NN
in/IN
advancing/VBG
his/PRP$
capital-gains/NNS
proposal/NN
./.
A/DT
30/CD
%/NN
cut/NN
in/IN
this/DT
year/NN
's/POS
capital/NN
gains/NNS
alone/RB
amounts/VBZ
to/TO
roughly/RB
$/$
50/CD
billion/CD
./.
We/PRP
're/VBP
talking/VBG
real/JJ
money/NN
./.
When/WRB
Richard/NNP
Rahn/NNP
advised/VBD
the/DT
financial/JJ
press/NN
that/IN
the/DT
market/NN
crash/NN
was/VBD
caused/VBN
by/IN
the/DT
setback/NN
to/TO
capital/NN
gains/NNS
,/,
he/PRP
was/VBD
generally/RB
ignored/VBN
and/CC
mildly/RB
ridiculed/VBN
./.
Instead/RB
,/,
the/DT
press/NN
corps/NN
readily/RB
accepted/VBD
the/DT
notion/NN
that/IN
a/DT
snag/NN
in/IN
the/DT
takeover/NN
financing/NN
of/IN
United/NNP
Airlines/NNP
instantly/RB
knocked/VBD
7/CD
%/NN
off/IN
the/DT
value/NN
of/IN
the/DT
nation/NN
's/POS
capital/NN
stock/NN
and/CC
caused/VBD
convulsions/NNS
around/IN
the/DT
world/NN
./.
Mr./NNP
Rahn/NNP
was/VBD
pointing/VBG
out/RP
an/DT
elephant/NN
rumbling/VBG
through/IN
Wall/NNP
Street/NNP
while/IN
conventional/JJ
wisdom/NN
had/VBD
fastened/VBN
on/IN
the/DT
UAL/NNP
flea/NN
./.
Why/WRB
is/VBZ
this/DT
happening/NN
?/.
For/IN
one/CD
thing/NN
,/,
quite/PDT
a/DT
number/NN
of/IN
the/DT
leading/JJ
spokesmen/NNS
on/IN
Wall/NNP
Street/NNP
are/VBP
not/RB
portfolio/NN
managers/NNS
,/,
who/WP
understand/VBP
that/IN
the/DT
value/NN
of/IN
assets/NNS
is/VBZ
greatly/RB
affected/VBN
by/IN
how/WRB
government/NN
taxes/VBZ
those/DT
assets/NNS
./.
They/PRP
are/VBP
economists/NNS
and/CC
financial/JJ
reporters/NNS
who/WP
sympathize/VBP
with/IN
the/DT
view/NN
that/IN
a/DT
capital-gains/NNS
tax/NN
cut/NN
benefits/VBZ
the/DT
rich/JJ
./.
Yet/CC
they/PRP
somehow/RB
think/VBP
that/IN
Wall/NNP
Street/NNP
is/VBZ
indifferent/JJ
to/TO
losing/VBG
the/DT
tax/NN
cut/NN
that/WDT
seemed/VBD
so/RB
close/RB
Friday/NNP
morning/NN
and/CC
is/VBZ
now/RB
problematic/JJ
./.
The/DT
market/NN
rebound/NN
Monday/NNP
followed/VBD
weekend/NN
assurances/NNS
from/IN
Mr./NNP
Darman/NNP
that/IN
the/DT
administration/NN
has/VBZ
other/JJ
plans/NNS
to/TO
win/VB
the/DT
cut/NN
,/,
which/WDT
is/VBZ
alive/JJ
and/CC
well/RB
./.
Sen./NNP
Bradley/NNP
's/POS
argument/NN
is/VBZ
that/IN
a/DT
capital-gains/NNS
tax/NN
cut/NN
would/MD
be/VB
bad/JJ
for/IN
the/DT
economy/NN
in/IN
the/DT
longer/JJR
run/NN
./.
It/PRP
would/MD
inevitably/RB
lead/VB
to/TO
an/DT
increase/NN
in/IN
marginal/JJ
income-tax/NN
rates/NNS
in/IN
1990/CD
,/,
he/PRP
thinks/VBZ
,/,
when/WRB
the/DT
White/NNP
House/NNP
is/VBZ
forced/VBN
to/TO
ask/VB
for/IN
higher/JJR
taxes/NNS
to/TO
meet/VB
budget/NN
targets/NNS
./.
That/DT
is/VBZ
,/,
with/IN
capital/NN
gains/NNS
cut/VBN
,/,
the/DT
glue/NN
of/IN
the/DT
1986/CD
accord/NN
will/MD
be/VB
gone/VBN
,/,
and/CC
political/JJ
realities/NNS
will/MD
push/VB
up/RP
income-tax/NN
rates/NNS
./.
The/DT
counter-argument/NN
,/,
which/WDT
he/PRP
has/VBZ
heard/VBN
,/,
is/VBZ
that/IN
if/IN
he/PRP
and/CC
his/PRP$
fellow/JJ
Democrats/NNP
are/VBP
successful/JJ
in/IN
killing/VBG
the/DT
president/NN
's/POS
proposal/NN
,/,
the/DT
revenue/NN
gap/NN
will/MD
open/VB
up/RP
tremendously/RB
in/IN
1990/CD
because/IN
of/IN
the/DT
weakened/JJ
economy/NN
./.
In/IN
this/DT
atmosphere/NN
,/,
there/EX
would/MD
be/VB
no/DT
serious/JJ
consideration/NN
of/IN
tax/NN
increases/NNS
./.
If/IN
Sen./NNP
Bradley/NNP
would/MD
permit/VB
a/DT
vote/NN
on/IN
capital/NN
gains/NNS
,/,
though/RB
,/,
it/PRP
would/MD
pass/VB
,/,
Christmas/NNP
retail/JJ
sales/NNS
would/MD
be/VB
strong/JJ
instead/RB
of/IN
burdened/VBN
by/IN
a/DT
falling/VBG
stock/NN
market/NN
,/,
the/DT
1990/CD
economy/NN
would/MD
be/VB
robust/JJ
,/,
and/CC
the/DT
revenue/NN
gains/NNS
at/IN
every/DT
level/NN
of/IN
government/NN
,/,
including/VBG
New/NNP
Jersey/NNP
's/POS
,/,
would/MD
be/VB
surprisingly/RB
high/JJ
./.
No/DT
tax/NN
increases/NNS
would/MD
be/VB
necessary/JJ
./.
The/DT
struggle/NN
over/IN
capital/NN
gains/NNS
is/VBZ
the/DT
most/RBS
important/JJ
game/NN
in/IN
town/NN
./.
In/IN
Washington/NNP
and/CC
on/IN
Wall/NNP
Street/NNP
./.
Mr./NNP
Wanniski/NNP
is/VBZ
president/NN
of/IN
Polyconomics/NNP
Inc./NNP
,/,
of/IN
Morristown/NNP
,/,
N.J/NNP
./.
Federal/JJ
prosecutors/NNS
said/VBD
they/PRP
have/VBP
obtained/VBN
a/DT
guilty/JJ
plea/NN
from/IN
another/DT
person/NN
in/IN
the/DT
government/NN
's/POS
ongoing/JJ
probe/NN
of/IN
illegal/JJ
payments/NNS
in/IN
the/DT
record/JJ
industry/NN
./.
William/NNP
Craig/NNP
,/,
an/DT
independent/JJ
record/NN
promoter/NN
,/,
pleaded/VBD
guilty/JJ
to/TO
payola/NN
and/CC
criminal/JJ
tax/NN
charges/NNS
,/,
according/VBG
to/TO
a/DT
statement/NN
issued/VBN
by/IN
Gary/NNP
Feess/NNP
,/,
the/DT
U.S./NNP
attorney/NN
here/RB
./.
Payola/NN
is/VBZ
the/DT
practice/NN
of/IN
making/VBG
illegal/JJ
,/,
undisclosed/JJ
payments/NNS
to/TO
radio/NN
station/NN
personnel/NNS
in/IN
return/NN
for/IN
getting/VBG
the/DT
stations/NNS
to/TO
play/VB
certain/JJ
songs/NNS
over/IN
the/DT
air/NN
./.
As/IN
part/NN
of/IN
his/PRP$
plea/NN
agreement/NN
with/IN
the/DT
government/NN
,/,
the/DT
44-year-old/JJ
Mr./NNP
Craig/NNP
faces/VBZ
a/DT
maximum/NN
of/IN
three/CD
years/NNS
in/IN
prison/NN
./.
In/IN
return/NN
,/,
Mr./NNP
Craig/NNP
agreed/VBD
to/TO
cooperate/VB
in/IN
the/DT
government/NN
's/POS
continuing/VBG
payola/NN
probe/NN
,/,
says/VBZ
a/DT
spokeswoman/NN
for/IN
the/DT
U.S./NNP
attorney/NN
's/POS
office/NN
./.
Mr./NNP
Craig/NNP
and/CC
three/CD
others/NNS
were/VBD
indicted/VBN
last/JJ
year/NN
as/IN
part/NN
of/IN
that/DT
payola/NN
probe/NN
./.
Two/CD
other/JJ
defendants/NNS
previously/RB
pleaded/VBD
guilty/JJ
,/,
and/CC
charges/NNS
against/IN
the/DT
third/JJ
were/VBD
dropped/VBN
./.
Companies/NNS
listed/VBN
below/IN
reported/VBD
quarterly/JJ
profit/NN
substantially/RB
different/JJ
from/IN
the/DT
average/NN
of/IN
analysts/NNS
'/POS
estimates/NNS
./.
The/DT
companies/NNS
are/VBP
followed/VBN
by/IN
at/IN
least/JJS
three/CD
analysts/NNS
,/,
and/CC
had/VBD
a/DT
minimum/JJ
five-cent/JJ
change/NN
in/IN
actual/JJ
earnings/NNS
per/IN
share/NN
./.
Estimated/JJ
and/CC
actual/JJ
results/NNS
involving/VBG
losses/NNS
are/VBP
omitted/VBN
./.
The/DT
percent/NN
difference/NN
compares/VBZ
actual/JJ
profit/NN
with/IN
the/DT
30-day/JJ
estimate/NN
where/WRB
at/IN
least/JJS
three/CD
analysts/NNS
have/VBP
issues/NNS
forecasts/NNS
in/IN
the/DT
past/JJ
30/CD
days/NNS
./.
Otherwise/RB
,/,
actual/JJ
profit/NN
is/VBZ
compared/VBN
with/IN
the/DT
300-day/JJ
estimate/NN
./.
Source/NN
:/:
Zacks/NNP
Investment/NNP
Research/NNP
Grumman/NNP
Corp./NNP
was/VBD
awarded/VBN
a/DT
$/$
53.1/CD
million/CD
Navy/NNP
contract/NN
for/IN
advanced/JJ
acquisition/NN
of/IN
six/CD
E-2C/NNP
tactical/JJ
control/NN
aircraft/NN
./.
LTV/NNP
Corp./NNP
won/VBD
a/DT
$/$
25/CD
million/CD
Army/NN
contract/NN
for/IN
missile/NN
test/NN
equipment/NN
./.
Unisys/NNP
Corp./NNP
received/VBD
a/DT
$/$
24.4/CD
million/CD
Air/NNP
Force/NNP
contract/NN
for/IN
computer/NN
programming/NN
./.
Ford/NNP
Aerospace/NNP
&/CC
Communications/NNP
Corp./NNP
,/,
a/DT
unit/NN
of/IN
Ford/NNP
Motor/NNP
Co./NNP
,/,
was/VBD
awarded/VBN
a/DT
$/$
15.9/CD
million/CD
Air/NNP
Force/NNP
contract/NN
for/IN
computer/NN
improvements/NNS
./.
Rockwell/NNP
International/NNP
Corp./NNP
was/VBD
issued/VBN
a/DT
$/$
12.5/CD
million/CD
Air/NNP
Force/NNP
contract/NN
for/IN
changes/NNS
in/IN
the/DT
National/NNP
Aerospace/NNP
Plane/NNP
./.
The/DT
Tennessee/NNP
Valley/NNP
Authority/NNP
issued/VBD
$/$
4/CD
billion/CD
in/IN
bonds/NNS
in/IN
the/DT
federal/JJ
utility/NN
's/POS
first/JJ
public/JJ
debt/NN
offering/NN
in/IN
15/CD
years/NNS
./.
Proceeds/NNS
from/IN
the/DT
bonds/NNS
,/,
with/IN
coupon/NN
rates/NNS
in/IN
the/DT
8/CD
%/NN
range/NN
,/,
will/MD
be/VB
used/VBN
to/TO
replace/VB
bonds/NNS
with/IN
an/DT
average/JJ
interest/NN
rate/NN
of/IN
13.1/CD
%/NN
./.
The/DT
TVA/NNP
said/VBD
the/DT
refinancing/VBG
should/MD
save/VB
$/$
75/CD
million/CD
a/DT
year/NN
in/IN
interest/NN
payments/NNS
./.
The/DT
refinancing/NN
is/VBZ
part/NN
of/IN
the/DT
TVA/NNP
's/POS
strategy/NN
of/IN
dealing/VBG
with/IN
what/WP
has/VBZ
been/VBN
an/DT
intractable/JJ
problem/NN
:/:
its/PRP$
staggering/JJ
$/$
18.5/CD
billion/CD
debt/NN
,/,
most/JJS
of/IN
which/WDT
is/VBZ
owed/VBN
to/TO
the/DT
Treasury/NNP
Department/NNP
's/POS
Federal/NNP
Financing/NNP
Bank/NNP
./.
The/DT
TVA/NNP
currently/RB
plans/VBZ
to/TO
issue/VB
a/DT
total/NN
of/IN
$/$
6.7/CD
billion/CD
in/IN
bonds/NNS
to/TO
refinance/VB
its/PRP$
high-interest/JJ
debt/NN
./.
The/DT
$/$
4/CD
billion/CD
bond/NN
issue/NN
also/RB
will/MD
help/VB
the/DT
TVA/NNP
meet/VB
its/PRP$
goal/NN
of/IN
not/RB
raising/VBG
rates/NNS
for/IN
another/DT
year/NN
,/,
said/VBD
William/NNP
F./NNP
Malec/NNP
,/,
the/DT
agency/NN
's/POS
chief/JJ
financial/JJ
officer/NN
./.
The/DT
bond/NN
issue/NN
is/VBZ
TVA/NNP
's/POS
first/JJ
public/JJ
offering/NN
since/IN
the/DT
Financing/NNP
Bank/NNP
was/VBD
created/VBN
in/IN
1974/CD
,/,
primarily/RB
to/TO
finance/VB
the/DT
TVA/NNP
./.
But/CC
the/DT
offering/NN
almost/RB
did/VBD
n't/RB
happen/VB
./.
The/DT
TVA/NNP
,/,
in/IN
fact/NN
,/,
decided/VBD
to/TO
proceed/VB
with/IN
the/DT
bond/NN
offering/NN
following/VBG
an/DT
agreement/NN
last/JJ
week/NN
with/IN
the/DT
Financing/NNP
Bank/NNP
,/,
which/WDT
allows/VBZ
TVA/NNP
to/TO
keep/VB
borrowing/VBG
short/JJ
term/NN
from/IN
the/DT
bank/NN
for/IN
two/CD
years/NNS
after/IN
it/PRP
goes/VBZ
to/TO
the/DT
public/JJ
market/NN
./.
The/DT
Treasury/NNP
contended/VBD
that/IN
TVA/NNP
could/MD
n't/RB
borrow/VB
from/IN
both/DT
it/PRP
and/CC
the/DT
public/JJ
debt/NN
market/NN
./.
The/DT
$/$
4/CD
billion/CD
in/IN
bonds/NNS
break/VBP
down/RP
as/IN
follows/VBZ
:/:
$/$
1/CD
billion/CD
in/IN
five-year/JJ
bonds/NNS
with/IN
a/DT
coupon/NN
rate/NN
of/IN
8.25/CD
%/NN
and/CC
a/DT
yield/NN
to/TO
maturity/NN
of/IN
8.33/CD
%/NN
;/:
$/$
1/CD
billion/CD
in/IN
10-year/JJ
bonds/NNS
with/IN
a/DT
coupon/NN
rate/NN
of/IN
8.375/CD
%/NN
and/CC
a/DT
yield/NN
to/TO
maturity/NN
of/IN
8.42/CD
%/NN
;/:
$/$
2/CD
billion/CD
in/IN
30-year/JJ
bonds/NNS
with/IN
five-year/JJ
call/NN
protection/NN
,/,
a/DT
coupon/NN
rate/NN
of/IN
8.75/CD
%/NN
and/CC
a/DT
yield/NN
to/TO
maturity/NN
of/IN
9.06/CD
%/NN
./.
Managing/VBG
the/DT
bond/NN
issue/NN
is/VBZ
a/DT
group/NN
of/IN
investment/NN
banks/NNS
headed/VBN
by/IN
First/NNP
Boston/NNP
Corp./NNP
and/CC
co-managed/VBN
by/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
,/,
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
,/,
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
,/,
and/CC
Salomon/NNP
Brothers/NNP
Inc/NNP
./.
Mutual-fund/NN
czar/NN
John/NNP
M./NNP
Templeton/NNP
has/VBZ
put/VBN
his/PRP$
money/NN
where/WRB
his/PRP$
moniker/NN
is/VBZ
,/,
pouring/VBG
$/$
1.4/CD
million/CD
into/IN
one/CD
of/IN
his/PRP$
own/JJ
funds/NNS
,/,
the/DT
Templeton/NNP
Value/NNP
Fund/NNP
./.
Mr./NNP
Templeton/NNP
owns/VBZ
shares/NNS
in/IN
several/JJ
of/IN
the/DT
33/CD
funds/NNS
that/IN
his/PRP$
firm/NN
manages/VBZ
,/,
but/CC
only/RB
in/IN
three/CD
of/IN
the/DT
10/CD
available/JJ
to/TO
U.S./NNP
investors/NNS
,/,
according/VBG
to/TO
filings/NNS
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
./.
Those/DT
are/VBP
Templeton/NNP
Global/NNP
Income/NNP
,/,
Templeton/NNP
Emerging/NNP
Markets/NNP
and/CC
now/RB
the/DT
Value/NNP
Fund/NNP
./.
Why/WRB
did/VBD
he/PRP
add/VB
the/DT
Value/NNP
Fund/NNP
to/TO
the/DT
list/NN
?/.
Because/IN
he/PRP
's/VBZ
very/RB
bullish/JJ
on/IN
the/DT
emerging/VBG
growth/NN
stocks/NNS
that/WDT
make/VBP
up/RP
the/DT
fund/NN
's/POS
portfolio/NN
,/,
Mr./NNP
Templeton/NNP
said/VBD
from/IN
his/PRP$
Bahamas/NNPS
hideaway/NN
./.
``/``
Emerging/VBG
growth/NN
stocks/NNS
have/VBP
n't/RB
been/VBN
popular/JJ
in/IN
America/NNP
for/IN
years/NNS
,/,
they/PRP
've/VBP
been/VBN
neglected/VBN
,/,
''/''
he/PRP
said/VBD
,/,
and/CC
their/PRP$
prices/NNS
often/RB
trail/VBP
the/DT
market/NN
as/IN
a/DT
whole/NN
./.
Mr./NNP
Templeton/NNP
's/POS
147,300-share/JJ
purchase/NN
in/IN
the/DT
closed-end/JJ
fund/NN
came/VBD
before/IN
the/DT
U.S./NNP
stock/NN
market/NN
's/POS
plunge/NN
last/JJ
Friday/NNP
,/,
but/CC
still/RB
proved/VBD
slightly/RB
profitable/JJ
./.
Mr./NNP
Templeton/NNP
bought/VBD
his/PRP$
shares/NNS
in/IN
several/JJ
separate/JJ
purchases/NNS
between/IN
Aug./NNP
30/CD
and/CC
Sept./NNP
28/CD
,/,
according/VBG
to/TO
reports/NNS
with/IN
the/DT
SEC/NNP
./.
He/PRP
bought/VBD
at/IN
share/NN
prices/NNS
ranging/VBG
from/IN
$/$
9.375/CD
to/TO
$/$
9.625/CD
./.
The/DT
fund/NN
closed/VBD
yesterday/NN
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
at/IN
$/$
9.625/CD
,/,
up/RB
12.5/CD
cents/NNS
./.
In/IN
addition/NN
,/,
Mr./NNP
Templeton/NNP
received/VBD
a/DT
dividend/NN
of/IN
22/CD
cents/NNS
a/DT
share/NN
Oct./NNP
5/CD
./.
RIVER/NNP
RUN/NNP
:/:
A/DT
senior/JJ
vice/NN
president/NN
and/CC
a/DT
vice/NN
president/NN
at/IN
James/NNP
River/NNP
Corp./NNP
sold/VBD
the/DT
majority/NN
of/IN
their/PRP$
shares/NNS
in/IN
the/DT
Richmond/NNP
,/,
Va./NNP
,/,
paper-products/NNS
concern/NN
in/IN
late/JJ
August/NNP
and/CC
early/JJ
September/NNP
,/,
reports/NNS
filed/VBN
with/IN
the/DT
SEC/NNP
show/VBP
./.
The/DT
executives/NNS
,/,
who/WP
got/VBD
$/$
30.88/CD
a/DT
share/NN
for/IN
the/DT
stock/NN
,/,
showed/VBD
good/JJ
timing/NN
./.
In/IN
Big/NNP
Board/NNP
trading/NN
yesterday/NN
,/,
James/NNP
River/NNP
shares/NNS
closed/VBD
at/IN
$/$
28.375/CD
,/,
down/RB
12.5/CD
cents/NNS
./.
On/IN
Sept./NNP
6/CD
,/,
Robert/NNP
Joseph/NNP
Sherry/NNP
,/,
the/DT
firm/NN
's/POS
senior/JJ
vice/NN
president/NN
of/IN
employee/NN
and/CC
public/JJ
relations/NNS
,/,
sold/VBD
4,000/CD
shares/NNS
,/,
leaving/VBG
himself/PRP
with/IN
1,062/CD
shares/NNS
of/IN
James/NNP
River/NNP
./.
Including/VBG
a/DT
sale/NN
of/IN
stock/NN
last/JJ
February/NNP
,/,
Mr./NNP
Sherry/NNP
has/VBZ
sold/VBN
88/CD
%/NN
of/IN
his/PRP$
stake/NN
in/IN
the/DT
company/NN
this/DT
year/NN
,/,
according/VBG
to/TO
SEC/NNP
filings/NNS
./.
Mr./NNP
Sherry/NNP
declined/VBD
to/TO
comment/VB
when/WRB
asked/VBN
about/IN
the/DT
sales/NNS
./.
James/NNP
A./NN
Toney/NNP
,/,
a/DT
vice/NN
president/NN
,/,
sold/VBD
1,500/CD
shares/NNS
Aug./NNP
28/CD
./.
He/PRP
still/RB
has/VBZ
1,143/CD
shares/NNS
,/,
according/VBG
to/TO
SEC/NNP
files/NNS
./.
Mr./NNP
Toney/NNP
also/RB
declined/VBD
to/TO
comment/VB
./.
INTEREST-RATE/NN
PLAYER/NNP
:/:
Cincinnati/NNP
Gas/NNP
&/CC
Electric/NNP
Co./NNP
tops/VBZ
the/DT
companies/NNS
portion/NN
of/IN
the/DT
accompanying/JJ
Insider/NNP
Trading/NNP
table/NN
this/DT
week/NN
./.
Three/CD
of/IN
the/DT
utility/NN
's/POS
directors/NNS
have/VBP
at/IN
least/JJS
doubled/VBD
their/PRP$
holdings/NNS
in/IN
the/DT
company/NN
since/IN
July/NNP
./.
The/DT
largest/JJS
purchase/NN
was/VBD
by/IN
Dudley/NNP
Taft/NNP
,/,
who/WP
bought/VBD
4,400/CD
shares/NNS
for/IN
$/$
125,075/CD
./.
Mr./NNP
Taft/NNP
,/,
who/WP
is/VBZ
also/RB
president/NN
of/IN
Taft/NNP
Broadcasting/NNP
Co./NNP
,/,
said/VBD
he/PRP
bought/VBD
the/DT
shares/NNS
because/IN
he/PRP
keeps/VBZ
a/DT
utility/NN
account/NN
at/IN
the/DT
brokerage/NN
firm/NN
of/IN
Salomon/NNP
Brothers/NNP
Inc./NNP
,/,
which/WDT
had/VBD
recommended/VBN
the/DT
stock/NN
as/IN
a/DT
good/JJ
buy/NN
./.
Salomon/NNP
Brothers/NNP
confirmed/VBD
that/IN
it/PRP
has/VBZ
had/VBN
a/DT
buy/JJ
recommendation/NN
on/IN
the/DT
stock/NN
for/IN
about/RB
two/CD
years/NNS
./.
``/``
Cincinnati/NNP
Gas/NNP
&/CC
Electric/NNP
is/VBZ
in/IN
good/JJ
shape/NN
,/,
''/''
Mr./NNP
Taft/NNP
said/VBD
,/,
and/CC
utilities/NNS
are/VBP
``/``
a/DT
good/JJ
investment/NN
because/IN
interest/NN
rates/NNS
are/VBP
going/VBG
down/RB
./.
''/''
Mr./NNP
Taft/NNP
paid/VBD
an/DT
average/NN
of/IN
$/$
28.43/CD
for/IN
each/DT
share/NN
./.
The/DT
stock/NN
closed/VBD
yesterday/NN
on/IN
the/DT
Big/NNP
Board/NNP
at/IN
$/$
28.75/CD
,/,
down/RB
12.5/CD
cents/NNS
./.
The/DT
two/CD
other/JJ
directors/NNS
bought/VBD
1,000/CD
and/CC
1,900/CD
shares/NNS
,/,
respectively/RB
,/,
at/IN
prices/NNS
between/IN
$/$
28.15/CD
a/DT
share/NN
and/CC
$/$
28.75/CD
a/DT
share/NN
,/,
filings/NNS
with/IN
the/DT
SEC/NNP
show/NN
./.
The/DT
two/CD
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
A/DT
company/NN
spokesman/NN
said/VBD
he/PRP
could/MD
n't/RB
explain/VB
their/PRP$
sudden/JJ
bullishness/NN
./.
``/``
I/PRP
do/VBP
n't/RB
know/VB
of/IN
any/DT
news/NN
or/CC
anything/NN
unusual/JJ
happening/VBG
here/RB
,/,
''/''
said/VBD
Bruce/NNP
Stoecklin/NNP
,/,
director/NN
of/IN
media/NNS
services/NNS
./.
Peter/NNP
Pae/NNP
in/IN
Pittsburgh/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
T./NNP
Rowe/NNP
Price/NNP
Associates/NNP
Inc./NNP
said/VBD
directors/NNS
recommended/VBD
stockholders/NNS
approve/VB
a/DT
2-for-1/JJ
stock/NN
split/NN
and/CC
an/DT
increase/NN
in/IN
authorized/JJ
shares/NNS
to/TO
25/CD
million/CD
from/IN
10/CD
million/CD
./.
Stockholders/NNS
will/MD
vote/VB
on/IN
the/DT
proposal/NN
at/IN
a/DT
meeting/NN
Dec./NNP
13/CD
./.
T./NNP
Rowe/NNP
Price/NNP
is/VBZ
an/DT
investment/NN
adviser/NN
to/TO
mutual/JJ
funds/NNS
,/,
institutions/NNS
and/CC
individuals/NNS
./.
In/IN
one/CD
of/IN
the/DT
first/JJ
indoor/JJ
air-pollution/NN
cases/NNS
to/TO
go/VB
to/TO
trial/NN
,/,
a/DT
state-court/NN
jury/NN
decided/VBD
in/IN
favor/NN
of/IN
the/DT
defendant/NN
,/,
Burlington/NNP
Industries/NNP
Inc/NNP
./.
The/DT
verdict/NN
,/,
reached/VBN
late/JJ
last/JJ
week/NN
in/IN
Cincinnati/NNS
,/,
may/MD
end/VB
an/DT
eight-year/JJ
legal/JJ
battle/NN
for/IN
the/DT
Greensboro/NNP
,/,
N.C./NNP
,/,
carpet/NN
maker/NN
./.
Glenn/NNP
and/CC
Sharon/NNP
Beebe/NNP
of/IN
Cincinnati/NNP
had/VBD
sued/VBN
the/DT
com/NN
pany/NN
in/IN
1981/CD
after/IN
installing/VBG
Burlington/NNP
carpets/NNS
in/IN
their/PRP$
office/NN
./.
The/DT
Beebes/NNPS
alleged/VBD
that/IN
toxic/JJ
fumes/NNS
from/IN
the/DT
carpets/NNS
made/VBD
them/PRP
sick/JJ
./.
As/IN
a/DT
result/NN
of/IN
their/PRP$
illness/NN
,/,
the/DT
Beebes/NNPS
said/VBD
,/,
they/PRP
lost/VBD
$/$
1.8/CD
million/CD
in/IN
wages/NNS
and/CC
earnings/NNS
./.
In/IN
addition/NN
,/,
they/PRP
said/VBD
that/IN
months/NNS
of/IN
exposure/NN
to/TO
the/DT
chemicals/NNS
has/VBZ
left/VBN
them/PRP
sensitive/JJ
to/TO
a/DT
wide/JJ
range/NN
of/IN
commonly/RB
used/VBN
substances/NNS
./.
The/DT
case/NN
had/VBD
been/VBN
closely/RB
watched/VBN
because/IN
attorneys/NNS
anticipate/VBP
increasing/JJ
litigation/NN
nationally/RB
over/IN
the/DT
so-called/JJ
sick-building/JJ
syndrome/NN
./.
Plaintiffs/NNS
'/POS
lawyers/NNS
say/VBP
that/IN
buildings/NNS
become/VBP
``/``
sick/JJ
''/''
when/WRB
inadequate/JJ
fresh/JJ
air/NN
and/CC
poor/JJ
ventilation/NN
systems/NNS
lead/VBP
pollutants/NNS
to/TO
build/VB
up/RP
inside/RB
./.
Anthony/NNP
J./NNP
Iaciofano/NNP
,/,
a/DT
lawyer/NN
for/IN
Burlington/NNP
,/,
said/VBD
the/DT
company/NN
believes/VBZ
the/DT
Beebes/NNPS
'/POS
symptoms/NNS
were/VBD
not/RB
related/VBN
to/TO
the/DT
carpeting/NN
./.
He/PRP
said/VBD
that/IN
ill/JJ
effects/NNS
from/IN
new/JJ
carpets/NNS
manifest/VBP
themselves/PRP
immediately/RB
but/CC
that/IN
the/DT
Beebes/NNPS
'/POS
symptoms/NNS
appeared/VBD
months/NNS
later/RB
./.
Catherine/NNP
Adams/NNP
,/,
the/DT
Beebes/NNPS
'/POS
lawyer/NN
,/,
said/VBD
the/DT
verdict/NN
would/MD
not/RB
discourage/VB
other/JJ
plaintiffs/NNS
from/IN
filing/VBG
such/JJ
suits/NNS
./.
Scientists/NNS
are/VBP
only/RB
beginning/VBG
to/TO
understand/VB
what/WP
causes/VBZ
sick-building/JJ
syndrome/NN
and/CC
much/JJ
of/IN
that/DT
research/NN
was/VBD
unavailable/JJ
when/WRB
the/DT
Beebes/NNPS
filed/VBD
the/DT
case/NN
,/,
she/PRP
said/VBD
./.
The/DT
Beebes/NNPS
now/RB
believe/VBP
that/IN
a/DT
prime/JJ
culprit/NN
for/IN
their/PRP$
injuries/NNS
was/VBD
fumes/NNS
from/IN
an/DT
adhesive/NN
used/VBN
in/IN
the/DT
carpeting/NN
./.
But/CC
the/DT
Beebes/NNPS
did/VBD
n't/RB
come/VBN
to/TO
that/DT
conclusion/NN
until/IN
time/NN
limits/NNS
had/VBD
elapsed/VBN
for/IN
adding/VBG
the/DT
adhesives/NNS
maker/NN
as/IN
a/DT
defendant/NN
in/IN
the/DT
case/NN
,/,
Ms./NNP
Adams/NNP
said/VBD
./.
have/VBP
not/RB
yet/RB
decided/VBN
whether/IN
to/TO
appeal/VB
./.
TIMES/NNP
SQUARE/NNP
development/NN
opponents/NNS
are/VBP
dealt/VBN
setback/NN
./.
The/DT
Appellate/NNP
Division/NNP
of/IN
New/NNP
York/NNP
State/NNP
Supreme/NNP
Court/NNP
dismissed/VBD
six/CD
lawsuits/NNS
attempting/VBG
to/TO
block/VB
a/DT
$/$
2.5/CD
billion/CD
project/NN
planned/VBN
for/IN
42nd/NNP
Street/NNP
in/IN
Manhattan/NNP
./.
Opponents/NNS
of/IN
the/DT
project/NN
had/VBD
claimed/VBN
that/IN
the/DT
city/NN
and/CC
the/DT
state/NN
of/IN
New/NNP
York/NNP
,/,
which/WDT
are/VBP
co-sponsoring/JJ
the/DT
project/NN
,/,
had/VBD
failed/VBN
to/TO
adhere/VB
to/TO
environmental/JJ
guidelines/NNS
./.
All/DT
but/IN
two/CD
of/IN
the/DT
40/CD
or/CC
so/RB
lawsuits/NNS
that/WDT
have/VBP
been/VBN
filed/VBN
since/IN
the/DT
project/NN
's/POS
1984/CD
approval/NN
have/VBP
been/VBN
dismissed/VBN
before/IN
the/DT
trial/NN
stage/NN
./.
The/DT
two/CD
that/WDT
remain/VBP
have/VBP
n't/RB
yet/RB
reached/VBN
the/DT
pre-trial/JJ
fact-finding/JJ
stage/NN
./.
State/NN
officials/NNS
said/VBD
the/DT
court/NN
's/POS
ruling/NN
clears/VBZ
the/DT
way/NN
for/IN
proceedings/NNS
to/TO
condemn/VB
buildings/NNS
in/IN
the/DT
area/NN
./.
``/``
This/DT
project/NN
is/VBZ
ready/JJ
to/TO
move/VB
,/,
''/''
said/VBD
State/NNP
Urban/NNP
Development/NNP
Corp./NNP
Chairman/NNP
Vincent/NNP
Tese/NNP
./.
But/CC
developers/NNS
of/IN
four/CD
planned/JJ
office/NN
towers/NNS
cautioned/VBD
that/IN
obstacles/NNS
still/RB
remain/VBP
./.
As/IN
part/NN
of/IN
the/DT
agreement/NN
with/IN
the/DT
state/NN
,/,
the/DT
developers/NNS
--/:
a/DT
partnership/NN
of/IN
Park/NNP
Tower/NNP
Realty/NNP
and/CC
Prudential/NNP
Insurance/NNP
Co./NNP
of/IN
America/NNP
--/:
said/VBD
they/PRP
would/MD
not/RB
proceed/VB
with/IN
condemnation/NN
proceedings/NNS
while/IN
there/EX
was/VBD
``/``
significant/JJ
litigation/NN
''/''
pending/VBG
./.
Park/NNP
Tower/NNP
General/NNP
Counsel/NNP
Matthew/NNP
Mayer/NNP
said/VBD
the/DT
development/NN
team/NN
will/MD
have/VB
to/TO
review/VB
two/CD
additional/JJ
lawsuits/NNS
before/IN
putting/VBG
up/RP
a/DT
$/$
155/CD
million/CD
letter/NN
of/IN
credit/NN
to/TO
cover/VB
condemnation/NN
costs/NNS
./.
Also/RB
,/,
he/PRP
said/VBD
,/,
the/DT
partnership/NN
is/VBZ
waiting/VBG
to/TO
see/VB
whether/IN
the/DT
appellate/JJ
division/NN
's/POS
ruling/NN
will/MD
be/VB
appealed/VBN
./.
The/DT
plan/NN
,/,
which/WDT
has/VBZ
been/VBN
plagued/VBN
with/IN
delays/NNS
and/CC
business-related/JJ
setbacks/NNS
,/,
seeks/VBZ
to/TO
transform/VB
the/DT
area/NN
from/IN
a/DT
seedy/JJ
thoroughfare/NN
to/TO
a/DT
more/RBR
wholesome/JJ
office/NN
and/CC
theater/NN
district/NN
./.
State/NN
and/CC
city/NN
officials/NNS
are/VBP
still/RB
negotiating/VBG
with/IN
developers/NNS
to/TO
renovate/VB
historic/JJ
theaters/NNS
and/CC
build/VB
and/CC
operate/VB
a/DT
merchandise/NN
mart/NN
and/CC
hotel/NN
./.
FEDERAL/JJ
JUDGE/NN
EXPANDS/VBZ
role/NN
of/IN
U.S./NNP
courts/NNS
in/IN
extradition/NN
decisions/NNS
./.
U.S./NNP
District/NNP
Judge/NNP
Jack/NNP
B./NNP
Weinstein/NNP
of/IN
Brooklyn/NNP
,/,
N.Y./NNP
,/,
ruled/VBD
that/IN
a/DT
man/NN
implicated/VBN
in/IN
an/DT
attack/NN
on/IN
an/DT
Israeli/JJ
passenger/NN
bus/NN
in/IN
1986/CD
can/MD
be/VB
extradited/VBN
to/TO
Israel/NNP
for/IN
trial/NN
./.
A/DT
magistrate/NN
had/VBD
initially/RB
refused/VBN
the/DT
request/NN
,/,
ruling/VBG
that/IN
the/DT
attack/NN
had/VBD
been/VBN
a/DT
political/JJ
act/NN
for/IN
which/WDT
the/DT
man/NN
,/,
Mahmoud/NNP
El-Abed/NNP
Ahmad/NNP
,/,
would/MD
be/VB
exempt/JJ
from/IN
extradition/NN
./.
However/RB
,/,
Judge/NNP
Weinstein/NNP
wrote/VBD
in/IN
his/PRP$
opinion/NN
late/RB
last/JJ
month/NN
that/DT
terrorism/NN
and/CC
acts/NNS
of/IN
war/NN
against/IN
civilians/NNS
can/MD
not/RB
be/VB
defined/VBN
as/IN
political/JJ
acts/NNS
./.
Judge/NNP
Weinstein/NNP
also/RB
ruled/VBD
that/IN
judges/NNS
must/MD
consider/VB
prior/RB
to/TO
extradition/NN
whether/IN
the/DT
defendant/NN
will/MD
be/VB
treated/VBN
fairly/RB
in/IN
a/DT
foreign/JJ
court/NN
./.
To/TO
do/VB
so/RB
,/,
the/DT
judge/NN
said/VBD
,/,
the/DT
U.S./NNP
courts/NNS
must/MD
review/VB
the/DT
judicial/JJ
process/NN
in/IN
the/DT
foreign/JJ
country/NN
independently/RB
of/IN
the/DT
State/NNP
Department/NNP
's/POS
assessment/NN
./.
He/PRP
said/VBD
that/IN
in/IN
this/DT
case/NN
he/PRP
concurred/VBD
with/IN
the/DT
State/NNP
Department/NNP
's/POS
decision/NN
that/IN
Mr./NNP
Ahmad/NNP
should/MD
be/VB
extradited/VBN
./.
Mr./NNP
Ahmad/NNP
's/POS
lawyer/NN
said/VBD
he/PRP
would/MD
appeal/VB
./.
Lawyers/NNS
close/RB
to/TO
the/DT
case/NN
said/VBD
they/PRP
believed/VBD
the/DT
ruling/NN
was/VBD
unprecedented/JJ
./.
``/``
Up/IN
until/IN
now/RB
the/DT
courts/NNS
have/VBP
said/VBN
it/PRP
is/VBZ
not/RB
their/PRP$
role/NN
to/TO
supervise/VB
the/DT
foreign/JJ
country/NN
's/POS
courts/NNS
,/,
''/''
said/VBD
Jacques/NNP
Semmelman/NNP
,/,
the/DT
assistant/JJ
U.S./NNP
attorney/NN
on/IN
the/DT
case/NN
./.
FORMER/JJ
CANADIAN/JJ
AMBASSADOR/NN
to/TO
the/DT
U.S./NNP
Allan/NNP
E./NNP
Gotlieb/NNP
has/VBZ
joined/VBN
the/DT
Philadelphia/NNP
law/NN
firm/NN
of/IN
Pepper/NNP
,/,
Hamilton/NNP
&/CC
Scheetz/NNP
as/IN
a/DT
consultant/NN
./.
Mr./NNP
Gotlieb/NNP
,/,
who/WP
serves/VBZ
as/IN
a/DT
consultant/NN
to/TO
Stikeman/NNP
,/,
Elliott/NNP
,/,
one/CD
of/IN
Canada/NNP
's/POS
biggest/JJS
law/NN
firms/NNS
,/,
is/VBZ
advising/VBG
Pepper/NNP
Hamilton/NNP
's/POS
Washington/NNP
office/NN
on/IN
legal/JJ
matters/NNS
related/VBN
to/TO
Canadian-U.S./JJ
investment/NN
,/,
corporate/JJ
finance/NN
and/CC
international/JJ
transactions/NNS
./.
QUOTABLE/JJ
:/:
In/IN
a/DT
speech/NN
prepared/VBN
for/IN
delivery/NN
in/IN
New/NNP
York/NNP
yesterday/NN
,/,
retired/JJ
Justice/NNP
Lewis/NNP
Powell/NNP
contested/VBD
the/DT
notion/NN
that/IN
the/DT
last/JJ
Supreme/NNP
Court/NNP
term/NN
marked/VBD
a/DT
turn/NN
toward/IN
conservatism/NN
:/:
``/``
Commentators/NNS
who/WP
agreed/VBD
on/IN
little/JJ
else/RB
unanimously/RB
proclaimed/VBD
a/DT
`/``
shift/NN
in/IN
direction/NN
'/''
on/IN
the/DT
court/NN
.../:
./.
I/PRP
take/VBP
these/DT
pronouncements/NNS
,/,
like/IN
many/JJ
that/WDT
have/VBP
preceded/VBN
them/PRP
in/IN
past/JJ
years/NNS
,/,
with/IN
a/DT
grain/NN
of/IN
salt/NN
./.
In/IN
an/DT
era/NN
of/IN
`/``
sound/NN
bites/NNS
'/POS
and/CC
instant/JJ
opinion/NN
polls/VBZ
it/PRP
is/VBZ
dangerous/JJ
to/TO
apply/VB
broad/JJ
labels/NNS
to/TO
a/DT
single/JJ
term/NN
./.
''/''
its/PRP$
centennial/JJ
year/NN
,/,
The/DT
Wall/NNP
Street/NNP
Journal/NNP
will/MD
report/VB
events/NNS
of/IN
the/DT
past/JJ
century/NN
that/DT
stand/NN
as/IN
milestones/NNS
of/IN
American/JJ
business/NN
history/NN
./.
THE/DT
YOM/NNP
KIPPUR/NNP
WAR/NNP
,/,
WHEN/WRB
EGYPT/NNP
CRASHED/VBD
into/IN
Israel/NNP
on/IN
Oct./NNP
6/CD
,/,
1973/CD
,/,
the/DT
holiest/JJS
day/NN
in/IN
the/DT
Jewish/JJ
calendar/NN
,/,
lasted/VBD
barely/RB
a/DT
month/NN
./.
But/CC
one/CD
far-afield/JJ
effect/NN
is/VBZ
still/RB
with/IN
us/PRP
./.
The/DT
Arab/JJ
states/NNS
,/,
always/RB
bitterly/RB
resentful/JJ
of/IN
U.S./NNP
support/NN
toward/IN
Israel/NNP
,/,
realized/VBD
they/PRP
held/VBD
an/DT
irresistable/JJ
weapon/NN
--/:
oil/NN
./.
Early/RB
in/IN
October/NNP
,/,
six/CD
Arab/JJ
nations/NNS
in/IN
the/DT
Persian/NNP
Gulf/NNP
jacked/VBD
up/RP
prices/NNS
sharply/RB
./.
On/IN
Oct./NNP
22/CD
,/,
led/VBN
by/IN
Saudi/NNP
Arabia/NNP
,/,
the/DT
world/NN
's/POS
largest/JJS
exporter/NN
,/,
they/PRP
embargoed/VBD
oil/NN
shipments/NNS
to/TO
the/DT
U.S./NNP
and/CC
to/TO
the/DT
Netherlands/NNPS
,/,
Israel/NNP
's/POS
staunchest/JJS
European/JJ
ally/NN
./.
The/DT
timing/NN
was/VBD
perfect/JJ
./.
The/DT
Arabs/NNPS
had/VBD
tried/VBN
embargos/NNS
before/RB
./.
In/IN
1956/CD
,/,
when/WRB
Britain/NNP
,/,
France/NNP
and/CC
Israel/NNP
invaded/VBD
Egypt/NNP
to/TO
seize/VB
the/DT
Suez/NNP
Canal/NNP
,/,
Arab/JJ
producers/NNS
cut/VBD
off/RP
supplies/NNS
to/TO
Europe/NNP
./.
Texas/NNP
simply/RB
pumped/VBD
harder/RBR
./.
U.S./NNP
oil/NN
supplies/NNS
,/,
however/RB
,/,
had/VBD
peaked/VBN
in/IN
1970/CD
and/CC
1971/CD
and/CC
by/IN
1973/CD
were/VBD
declining/VBG
./.
Imports/NNS
,/,
then/RB
six/CD
million/CD
barrels/NNS
a/DT
day/NN
,/,
came/VBD
primarily/RB
from/IN
Venezuela/NNP
and/CC
Canada/NNP
./.
But/CC
Middle/NNP
East/NNP
supplies/NNS
were/VBD
growing/VBG
in/IN
importance/NN
./.
By/IN
1973/CD
,/,
the/DT
U.S./NNP
was/VBD
bringing/VBG
in/RP
two/CD
million/CD
barrels/NNS
of/IN
Arab/JJ
oil/NN
a/DT
day/NN
,/,
more/JJR
than/IN
10/CD
%/NN
of/IN
the/DT
17.3/CD
million/CD
barrels/NNS
consumed/VBN
daily/RB
./.
Politics/NNS
and/CC
economics/NNS
conspired/VBD
./.
Japan/NNP
and/CC
Europe/NNP
,/,
far/RB
more/RBR
dependent/JJ
on/IN
Mideast/JJ
oil/NN
than/IN
the/DT
U.S./NNP
,/,
would/MD
n't/RB
offend/VB
the/DT
Arabs/NNPS
or/CC
trade/VB
off/IN
their/PRP$
precious/JJ
supplies/NNS
./.
The/DT
U.S./NNP
did/VBD
manage/VB
to/TO
supply/VB
the/DT
Dutch/NNPS
with/IN
oil/NN
by/IN
relabeling/VBG
supplies/NNS
;/:
once/IN
oil/NN
is/VBZ
shipped/VBN
,/,
no/DT
one/NN
can/MD
tell/VB
its/PRP$
source/NN
./.
But/CC
car-happy/JJ
Americans/NNPS
panicked/VBD
,/,
and/CC
so/RB
did/VBD
the/DT
U.S./NNP
and/CC
other/JJ
oil-consuming/JJ
governments/NNS
./.
``/``
Shortage/NN
''/''
and/CC
``/``
crisis/NN
''/''
became/VBD
buzz/JJ
words/NNS
,/,
although/IN
neither/DT
really/RB
applied/VBD
./.
The/DT
spot/JJ
dislocations/NNS
that/WDT
showed/VBD
up/RP
were/VBD
largely/RB
the/DT
result/NN
of/IN
confusion/NN
it/PRP
in/IN
Washington/NNP
that/DT
was/VBD
cold/JJ
comfort/NN
for/IN
drivers/NNS
waiting/VBG
in/IN
mile-long/JJ
lines/NNS
at/IN
the/DT
gas/NN
pumps/NNS
./.
The/DT
embargo/NN
lasted/VBD
only/RB
six/CD
months/NNS
,/,
but/CC
the/DT
price/NN
hikes/NNS
became/VBD
a/DT
fact/NN
of/IN
life/NN
./.
What/WP
the/DT
Arabs/NNPS
started/VBD
,/,
inflation/NN
finished/VBD
./.
Once/RB
and/CC
for/IN
all/DT
,/,
$/$
5-a-barrel/JJ
crude/JJ
oil/NN
and/CC
35-cents-a-gallon/JJ
gasoline/NN
were/VBD
history/NN
./.
Times/NNP
may/MD
be/VB
tough/JJ
on/IN
Wall/NNP
Street/NNP
for/IN
some/DT
,/,
but/CC
a/DT
few/JJ
bosses/NNS
are/VBP
making/VBG
as/RB
much/JJ
as/IN
ever/RB
--/:
or/CC
more/JJR
./.
At/IN
Bear/NNP
Stearns/NNP
Cos./NNP
,/,
for/IN
example/NN
,/,
the/DT
15/CD
executive/JJ
officers/NNS
led/VBN
by/IN
Chairman/NNP
Alan/NNP
``/``
Ace/NNP
''/''
Greenberg/NNP
got/VBD
a/DT
pay/NN
increase/NN
to/TO
$/$
35.9/CD
million/CD
for/IN
the/DT
14-month/JJ
period/NN
ended/VBN
June/NNP
30/CD
from/IN
$/$
22.9/CD
million/CD
for/IN
the/DT
12/CD
months/NNS
ended/VBN
April/NNP
30/CD
,/,
1988/CD
./.
The/DT
figures/NNS
do/VBP
n't/RB
include/VB
substantial/JJ
dividends/NNS
on/IN
holdings/NNS
of/IN
Bear/NNP
Stearns/NNP
stock/NN
./.
Mr./NNP
Greenberg/NNP
himself/PRP
was/VBD
paid/VBN
$/$
4.5/CD
million/CD
,/,
before/IN
an/DT
estimated/JJ
$/$
1.5/CD
million/CD
in/IN
dividends/NNS
,/,
up/RB
from/IN
$/$
2.4/CD
million/CD
the/DT
year/NN
before/RB
./.
The/DT
increase/NN
is/VBZ
noted/VBN
in/IN
the/DT
brokerage/NN
firm/NN
's/POS
latest/JJS
proxy/JJ
statement/NN
filed/VBN
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
./.
Because/IN
it/PRP
operates/VBZ
on/IN
a/DT
fiscal/JJ
year/NN
,/,
Bear/NNP
Stearns/NNP
's/POS
yearly/JJ
filings/NNS
are/VBP
available/JJ
much/RB
earlier/RBR
than/IN
those/DT
of/IN
other/JJ
firms/NNS
./.
The/DT
latest/JJS
period/NN
includes/VBZ
14/CD
months/NNS
instead/RB
of/IN
12/CD
because/IN
Bear/NNP
Stearns/NNP
changed/VBD
to/TO
a/DT
fiscal/JJ
year/NN
ending/VBG
in/IN
June/NNP
instead/RB
of/IN
April/NNP
./.
Meanwhile/RB
,/,
Bear/NNP
Stearns/NNP
's/POS
650/CD
stock/NN
and/CC
bond/NN
salesmen/NNS
saw/VBD
thinner/JJR
paychecks/NNS
over/IN
the/DT
past/NN
year/NN
,/,
which/WDT
the/DT
company/NN
says/VBZ
reflected/VBD
lower/JJR
commission/NN
revenue/NN
caused/VBN
by/IN
a/DT
decline/NN
in/IN
investor/NN
activity/NN
in/IN
the/DT
markets/NNS
./.
However/RB
,/,
Bear/NNP
Stearns/NNP
on/IN
Monday/NNP
reported/VBD
improved/JJ
earnings/NNS
for/IN
its/PRP$
first/JJ
quarter/NN
,/,
ended/VBN
Sept./NNP
29/CD
,/,
partly/RB
because/IN
of/IN
a/DT
31/CD
%/NN
increase/NN
in/IN
commissions/NNS
during/IN
the/DT
quarter/NN
./.
William/NNP
J./NNP
Montgoris/NNP
,/,
chief/JJ
financial/JJ
officer/NN
,/,
defended/VBD
the/DT
lofty/JJ
salaries/NNS
at/IN
Bear/NNP
Stearns/NNP
./.
``/``
All/DT
of/IN
us/PRP
are/VBP
on/IN
a/DT
base/JJ
salary/NN
of/IN
$/$
200,000/CD
if/IN
the/DT
firm/NN
makes/VBZ
nothing/NN
--/:
and/CC
that/DT
's/VBZ
pretty/RB
low/JJ
as/RB
far/RB
as/IN
Wall/NNP
Street/NNP
goes/VBZ
,/,
''/''
Mr./NNP
Montgoris/NNP
said/VBD
./.
However/RB
,/,
Bear/NNP
Stearns/NNP
has/VBZ
never/RB
had/VBD
an/DT
unprofitable/JJ
year/NN
since/IN
its/PRP$
founding/NN
65/CD
years/NNS
ago/RB
./.
Four/CD
Bear/NNP
Stearns/NNP
executives/NNS
besides/IN
the/DT
62-year-old/JJ
Mr./NNP
Greenberg/NNP
were/VBD
paid/VBN
$/$
3/CD
million/CD
or/CC
more/JJR
before/IN
dividends/NNS
for/IN
the/DT
14/CD
months/NNS
ended/VBN
in/IN
June/NNP
./.
According/VBG
to/TO
the/DT
proxy/JJ
statement/NN
,/,
James/NNP
E./NNP
Cayne/NNP
,/,
55/CD
,/,
Bear/NNP
Stearns/NNP
's/POS
president/NN
,/,
made/VBD
$/$
3.9/CD
million/CD
;/:
an/DT
executive/JJ
vice/NN
president/NN
,/,
Michael/NNP
L./NNP
Tarnopol/NNP
,/,
53/CD
,/,
made/VBD
nearly/RB
$/$
3.4/CD
million/CD
;/:
and/CC
two/CD
executive/JJ
vice/NN
presidents/NNS
,/,
Vincent/NNP
J./NNP
Mattone/NNP
,/,
44/CD
,/,
and/CC
William/NNP
J./NNP
Michaelcheck/NNP
,/,
42/CD
,/,
made/VBN
about/RB
$/$
3.3/CD
million/CD
each/DT
./.
Mr./NNP
Montgoris/NNP
said/VBD
the/DT
firm/NN
has/VBZ
a/DT
``/``
straight/JJ
mathematical/JJ
formula/NN
''/''
for/IN
determining/VBG
compensation/NN
,/,
based/VBN
on/IN
the/DT
firm/NN
's/POS
earnings/NNS
./.
``/``
Just/RB
because/IN
a/DT
particular/JJ
element/NN
of/IN
the/DT
firm/NN
is/VBZ
down/RB
,/,
''/''
such/JJ
as/IN
stockbrokerage/NN
,/,
``/``
does/VBZ
n't/RB
mean/VB
the/DT
executive/JJ
committee/NN
should/MD
be/VB
paid/VBN
less/JJR
,/,
''/''
he/PRP
said/VBD
./.
Morgan/NNP
Grenfell/NNP
Group/NNP
PLC/NNP
said/VBD
John/NNP
Craven/NNP
,/,
group/NN
chief/NN
executive/NN
officer/NN
,/,
is/VBZ
taking/VBG
over/IN
the/DT
chairmanship/NN
of/IN
the/DT
merchant/NN
banking/VBG
group/NN
from/IN
Sir/NNP
Peter/NNP
Carey/NNP
,/,
who/WP
is/VBZ
retiring/VBG
./.
Mr./NNP
Carey/NNP
will/MD
remain/VB
a/DT
member/NN
of/IN
the/DT
merchant/NN
bank/NN
's/POS
board/NN
./.
Mr./NNP
Craven/NNP
is/VBZ
widely/RB
credited/VBN
with/IN
refocusing/NN
Morgan/NNP
Grenfell/NNP
's/POS
energies/NNS
on/IN
its/PRP$
core/NN
corporate/JJ
finance/NN
,/,
fund/NN
management/NN
and/CC
banking/VBG
activities/NNS
over/IN
the/DT
past/JJ
year/NN
./.
Last/JJ
year/NN
,/,
Morgan/NNP
Grenfell/NNP
shut/VBD
down/IN
its/PRP$
ailing/VBG
U.K./NN
securities/NNS
operations/NNS
./.
Mr./NNP
Craven/NNP
said/VBD
his/PRP$
move/NN
to/TO
the/DT
chairmanship/NN
means/VBZ
he/PRP
will/MD
take/VB
a/DT
less/RBR
active/JJ
role/NN
in/IN
the/DT
day-to-day/JJ
management/NN
of/IN
the/DT
group/NN
,/,
but/CC
he/PRP
added/VBD
that/IN
the/DT
merchant/NN
bank/NN
's/POS
strategic/JJ
focus/NN
remains/VBZ
unchanged/JJ
./.
Mr./NNP
Craven/NNP
joined/VBD
Morgan/NNP
Grenfell/NNP
as/IN
group/NN
chief/NN
executive/NN
in/IN
May/NNP
1987/CD
,/,
a/DT
few/JJ
months/NNS
after/IN
the/DT
resignations/NNS
of/IN
former/JJ
Chief/NNP
Executive/NNP
Christopher/NNP
Reeves/NNP
and/CC
other/JJ
top/JJ
officials/NNS
because/IN
of/IN
the/DT
merchant/NN
bank/NN
's/POS
role/NN
in/IN
Guinness/NNP
PLC/NNP
's/POS
controversial/JJ
takeover/NN
of/IN
Distiller/NN
's/POS
Co./NN
in/IN
1986/CD
./.
Morgan/NNP
Grenfell/NNP
had/VBD
advised/VBN
Guinness/NNP
on/IN
the/DT
bid/NN
,/,
which/WDT
was/VBD
surrounded/VBN
by/IN
allegations/NNS
that/IN
Guinness/NNP
used/VBD
artificial/NN
means/NNS
to/TO
support/VB
the/DT
bid/NN
's/POS
value/NN
./.
Morgan/NNP
Grenfell/NNP
said/VBD
Michael/NNP
Dobson/NNP
,/,
currently/RB
group/NN
deputy/NN
chief/NN
executive/NN
,/,
will/MD
assume/VB
the/DT
chief/JJ
executive/NN
position/NN
./.
The/DT
merchant/NN
bank/NN
also/RB
announced/VBD
that/IN
finance/NN
director/NN
David/NNP
Eward/NNP
is/VBZ
taking/VBG
early/JJ
retirement/NN
for/IN
personal/NN
reasons/NNS
./.
His/PRP$
duties/NNS
will/MD
be/VB
taken/VBN
over/IN
by/IN
Anthony/NNP
Richmond-Watson/NNP
,/,
who/WP
has/VBZ
been/VBN
elected/VBN
deputy/JJ
chairman/NN
./.
News/NNP
of/IN
Mr./NNP
Eward/NNP
's/POS
retirement/NN
comes/VBZ
one/CD
day/NN
after/IN
Morgan/NNP
said/VBD
that/IN
Christopher/NNP
Whittington/NNP
resigned/VBD
as/IN
chairman/NN
of/IN
Morgan/NNP
's/POS
banking/VBG
subsidiary/NN
to/TO
join/VB
a/DT
financial/JJ
services/NNS
firm/JJ
./.
Mr./NNP
Craven/NNP
said/VBD
both/DT
Messrs./NNP
Eward/NNP
and/CC
Whittington/NNP
had/VBD
planned/VBN
to/TO
leave/VB
the/DT
bank/NN
earlier/RB
,/,
but/CC
Mr./NNP
Craven/NNP
had/VBD
persuaded/VBN
them/PRP
to/TO
remain/VB
until/IN
the/DT
bank/NN
was/VBD
in/IN
a/DT
healthy/JJ
position/NN
./.
``/``
If/IN
there/EX
's/VBZ
any/DT
coincidence/NN
about/IN
the/DT
departures/NNS
it/PRP
's/POS
that/IN
they/PRP
are/VBP
leaving/VBG
at/IN
a/DT
time/NN
when/WRB
the/DT
business/NN
is/VBZ
in/IN
reasonably/RB
good/JJ
shape/NN
and/CC
going/VBG
forward/RB
very/RB
well/RB
./.
''/''
Last/JJ
month/NN
,/,
Morgan/NNP
Grenfell/NNP
announced/VBD
its/PRP$
pretax/NN
profit/NN
rose/VBD
49.6/CD
%/NN
to/TO
#/#
32.8/CD
million/CD
in/IN
the/DT
first/JJ
half/NN
,/,
boosted/VBN
by/IN
a/DT
healthy/JJ
growth/NN
in/IN
its/PRP$
domestic/JJ
and/CC
international/JJ
corporate/JJ
finance/NN
business/NN
./.
The/DT
following/JJ
were/VBD
among/IN
yesterday/NN
's/POS
offerings/NNS
and/CC
pricings/NNS
in/IN
the/DT
U.S./NNP
and/CC
non-U.S./JJ
capital/NN
markets/NNS
,/,
with/IN
terms/NNS
and/CC
syndicate/NN
manager/NN
,/,
as/IN
compiled/VBN
by/IN
Dow/NNP
Jones/NNP
Capital/NNP
Markets/NNP
Report/NNP
:/:
Lockheed/NNP
Corp./NNP
--/:
$/$
300/CD
million/CD
of/IN
9/CD
3\/8/CD
%/NN
notes/NNS
due/JJ
Oct./NNP
15/CD
,/,
1999/CD
,/,
priced/VBN
at/IN
99.90/CD
to/TO
yield/VB
9.39/CD
%/NN
./.
The/DT
issue/NN
was/VBD
priced/VBN
at/IN
a/DT
spread/NN
of/IN
137.5/CD
basis/NN
points/NNS
above/IN
the/DT
Treasury/NNP
's/POS
10-year/JJ
note/NN
./.
Rated/VBN
single-A-3/JJ
by/IN
Moody/NNP
's/POS
Investors/NNP
Service/NNP
Inc./NNP
and/CC
single-A/JJ
by/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NNP
,/,
the/DT
issue/NN
will/MD
be/VB
sold/VBN
through/IN
underwriters/NNS
led/VBN
by/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
./.
California/NNP
Health/NNP
Facilities/NNP
Financing/NNP
Authority/NNP
--/:
$/$
144.35/CD
million/CD
of/IN
revenue/NN
bonds/NNS
for/IN
Kaiser/NNP
Permanente/NNP
,/,
due/JJ
19931999/CD
,/,
2004/CD
,/,
2008/CD
,/,
2018/CD
and/CC
2019/CD
,/,
tentatively/RB
priced/VBN
by/IN
a/DT
PaineWebber/NNP
Inc./NNP
group/NN
to/TO
yield/VB
from/IN
6.25/CD
%/NN
in/IN
1993/CD
to/TO
7.227/CD
%/NN
in/IN
2018/CD
./.
Serial/JJ
bonds/NNS
were/VBD
priced/VBN
to/TO
yield/VB
to/TO
6.80/CD
%/NN
in/IN
1999/CD
./.
There/EX
are/VBP
about/RB
$/$
10/CD
million/CD
of/IN
7/CD
%/NN
bonds/NNS
priced/VBN
at/IN
99/CD
1\/4/CD
to/TO
yield/VB
7.081/CD
%/NN
in/IN
2004/CD
;/:
about/RB
$/$
15/CD
million/CD
of/IN
7/CD
%/NN
bonds/NNS
priced/VBN
at/IN
98/CD
1\/2/CD
to/TO
yield/VB
7.145/CD
%/NN
in/IN
2008/CD
;/:
about/RB
$/$
88.35/CD
million/CD
of/IN
7/CD
%/NN
bonds/NNS
priced/VBN
at/IN
97/CD
1\/4/CD
to/TO
yield/VB
7.227/CD
%/NN
in/IN
2018/CD
;/:
and/CC
about/RB
$/$
15/CD
million/CD
of/IN
6/CD
3\/4/CD
%/NN
bonds/NNS
priced/VBN
to/TO
yield/VB
7.15/CD
%/NN
in/IN
2019/CD
./.
The/DT
bonds/NNS
are/VBP
rated/VBN
double-A-2/JJ
by/IN
Moody/NNP
's/POS
and/CC
double-A/JJ
by/IN
S&P/NNP
,/,
according/VBG
to/TO
the/DT
lead/JJ
underwriter/NN
./.
Pennsylvania/NNP
Higher/NNP
Education/NNP
Facilities/NNP
Authority/NNP
--/:
approximately/RB
$/$
117/CD
million/CD
of/IN
revenue/NN
bonds/NNS
for/IN
Hahnemann/NNP
University/NNP
,/,
Series/NNP
1989/CD
,/,
due/JJ
1990-2002/CD
,/,
2009/CD
and/CC
2019/CD
,/,
priced/VBN
late/RB
Monday/NNP
by/IN
a/DT
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
group/NN
to/TO
yield/VB
from/IN
6/CD
%/NN
in/IN
1990/CD
to/TO
7.282/CD
%/NN
in/IN
2019/CD
./.
Serial/JJ
bonds/NNS
were/VBD
priced/VBN
to/TO
yield/VB
from/IN
6/CD
%/NN
in/IN
1990/CD
to/TO
7.10/CD
%/NN
in/IN
2002/CD
./.
There/EX
are/VBP
about/RB
$/$
25.6/CD
million/CD
of/IN
7.2/CD
%/NN
term/NN
bonds/NNS
due/JJ
2009/CD
,/,
priced/VBN
to/TO
yield/VB
7.25/CD
%/NN
,/,
and/CC
about/RB
$/$
66.8/CD
million/CD
of/IN
7.2/CD
%/NN
term/NN
bonds/NNS
due/JJ
2019/CD
,/,
priced/VBN
at/IN
99/CD
to/TO
yield/VB
7.282/CD
%/NN
./.
The/DT
bonds/NNS
are/VBP
insured/VBN
and/CC
rated/VBN
triple-A/JJ
by/IN
Moody/NNP
's/POS
and/CC
S&P/NNP
./.
Connecticut/NNP
--/:
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100.4/CD
million/CD
of/IN
general/JJ
obligation/NN
capital/NN
appreciation/NN
bonds/NNS
,/,
College/NNP
Savings/NNP
Plan/NNP
,/,
1989/CD
Series/NNP
B/NNP
,/,
priced/VBN
by/IN
a/DT
Prudential-Bache/NNP
Capital/NNP
Funding/NNP
group/NN
./.
The/DT
zero-coupon/JJ
bonds/NNS
were/VBD
priced/VBN
to/TO
yield/VB
to/TO
maturity/NN
from/IN
6.25/CD
%/NN
in/IN
1994/CD
to/TO
6.90/CD
%/NN
in/IN
2006/CD
,/,
2007/CD
and/CC
2009/CD
./.
The/DT
bonds/NNS
have/VBP
received/VBN
a/DT
rating/NN
of/IN
double-A-1/JJ
from/IN
Moody/NNP
's/POS
,/,
and/CC
a/DT
double-A-plus/JJ
rating/NN
is/VBZ
expected/VBN
from/IN
S&P/NNP
,/,
the/DT
underwriter/NN
said/VBD
./.
Oregon/NNP
--/:
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100/CD
million/CD
of/IN
general/JJ
obligation/NN
veterans/NNS
'/POS
tax/NN
notes/NNS
,/,
Series/NNP
1989/CD
,/,
dated/VBN
Nov./NNP
1/CD
,/,
1989/CD
,/,
and/CC
due/JJ
Nov./NNP
1/CD
,/,
1990/CD
,/,
through/IN
a/DT
Chemical/NNP
Securities/NNP
Inc./NNP
group/NN
./.
The/DT
group/NN
is/VBZ
offering/VBG
the/DT
notes/NNS
priced/VBN
as/IN
6/CD
3\/4/CD
%/NN
securities/NNS
to/TO
yield/VB
6.25/CD
%/NN
./.
The/DT
notes/NNS
are/VBP
rated/VBN
MIG-1/JJ
by/IN
Moody/NN
's/POS
and/CC
SP1-plus/JJ
by/IN
S&P/NNP
./.
University/NNP
of/IN
Medicine/NNP
and/CC
Dentistry/NNP
of/IN
New/NNP
Jersey/NNP
--/:
$/$
55.8/CD
million/CD
of/IN
Series/NNP
C/NNP
bonds/NNS
priced/VBN
by/IN
a/DT
Prudential-Bache/NNP
Capital/NNP
Funding/NNP
group/NN
./.
The/DT
bonds/NNS
,/,
rated/VBN
single-A/JJ
by/IN
Moody/NNP
's/POS
and/CC
double-A/JJ
by/IN
S&P/NNP
,/,
were/VBD
priced/VBN
to/TO
yield/VB
from/IN
6.20/CD
%/NN
in/IN
1992/CD
to/TO
7.26/CD
%/NN
in/IN
2019/CD
./.
All/DT
serial/JJ
bonds/NNS
are/VBP
being/VBG
offered/VBN
at/IN
par/NN
except/IN
those/DT
due/JJ
2002/CD
./.
Federal/NNP
Home/NNP
Loan/NNP
Mortgage/NNP
Corp./NNP
--/:
$/$
500/CD
million/CD
of/IN
Remic/NNP
mortgage/NN
securities/NNS
being/VBG
offered/VBN
in/IN
eight/CD
classes/NNS
by/IN
Salomon/NNP
Brothers/NNP
Inc/NNP
./.
The/DT
offering/NN
,/,
Series/NNP
104/CD
,/,
is/VBZ
backed/VBN
by/IN
Freddie/NNP
Mac/NNP
9/CD
%/NN
securities/NNS
./.
The/DT
issue/NN
used/VBD
at-market/JJ
pricing/NN
./.
Federal/NNP
National/NNP
Mortgage/NNP
Association/NNP
--/:
$/$
350/CD
million/CD
of/IN
Remic/NNP
mortgage/NN
securities/NNS
being/VBG
offered/VBN
in/IN
11/CD
classes/NNS
by/IN
Greenwich/NNP
Capital/NNP
Markets/NNP
./.
The/DT
offering/NN
,/,
Series/NNP
1989-82/CD
,/,
is/VBZ
backed/VBN
by/IN
Fannie/NNP
Mae/NNP
9/CD
1\/2/CD
%/NN
securities/NNS
and/CC
used/VBD
at-market/JJ
pricing/NN
./.
The/DT
issue/NN
brings/VBZ
Fannie/NNP
Mae/NNP
's/POS
1989/CD
Remic/NNP
issuance/NN
to/TO
$/$
30.2/CD
billion/CD
and/CC
its/PRP$
total/JJ
volume/NN
to/TO
$/$
42.3/CD
billion/CD
since/IN
the/DT
program/NN
began/VBD
in/IN
April/NNP
1987/CD
./.
Hanshin/NNP
Electric/NNP
Railway/NNP
Co/NNP
./.
Japan/NNP
$/$
150/CD
million/CD
of/IN
bonds/NNS
due/JJ
Nov./NNP
2/CD
,/,
1993/CD
,/,
with/IN
equity-purchase/JJ
warrants/NNS
,/,
indicating/VBG
a/DT
4/CD
%/NN
coupon/NN
at/IN
par/NN
,/,
via/IN
Nomura/NNP
International/NNP
Ltd/NNP
./.
Each/DT
$/$
5,000/CD
bond/NN
carries/VBZ
one/CD
warrant/NN
,/,
exercisable/JJ
from/IN
Nov./NNP
16/CD
,/,
1989/CD
,/,
through/IN
Oct./NNP
19/CD
,/,
1993/CD
,/,
to/TO
buy/VB
company/NN
shares/NNS
at/IN
an/DT
expected/JJ
premium/NN
of/IN
2/CD
1\/2/CD
%/NN
to/TO
the/DT
closing/NN
share/NN
price/NN
when/WRB
terms/NNS
are/VBP
fixed/VBN
Oct./NNP
24/CD
./.
Toyobo/NNP
Co/NNP
./.
Japan/NNP
$/$
150/CD
million/CD
of/IN
bonds/NNS
due/JJ
Nov./NNP
1/CD
,/,
1993/CD
,/,
with/IN
equity-purchase/JJ
warrants/NNS
,/,
indicating/VBG
a/DT
4/CD
%/NN
coupon/NN
at/IN
par/NN
,/,
via/IN
Daiwa/NNP
Europe/NNP
Ltd/NNP
./.
Each/DT
$/$
5000/CD
bond/NN
carries/VBZ
one/CD
warrant/NN
,/,
exercisable/JJ
from/IN
Nov./NNP
15/CD
,/,
1989/CD
,/,
to/TO
Oct./NNP
18/CD
,/,
1993/CD
,/,
to/TO
buy/VB
company/NN
shares/NNS
at/IN
an/DT
expected/JJ
premium/NN
of/IN
2/CD
1\/2/CD
%/NN
to/TO
the/DT
closing/NN
share/NN
price/NN
when/WRB
terms/NNS
are/VBP
fixed/VBN
Oct./NNP
23/CD
./.
Sammi/NNP
Steel/NNP
Co/NNP
./.
Korea/NNP
$/$
50/CD
million/CD
of/IN
bonds/NNS
due/JJ
Nov./NNP
8/CD
,/,
1994/CD
,/,
with/IN
equity-purchase/JJ
warrants/NNS
,/,
indicating/VBG
a/DT
1/CD
1\/4/CD
%/NN
to/TO
1/CD
3\/4/CD
%/NN
coupon/NN
at/IN
par/NN
,/,
via/IN
Merrill/NNP
Lynch/NNP
International/NNP
Ltd./NNP
and/CC
Dong/NNP
Suh/NNP
Securities/NNP
Co/NNP
./.
Each/DT
$/$
5,000/CD
bond/NN
carries/VBZ
one/CD
warrant/NN
,/,
exercisable/JJ
from/IN
May/NNP
8/CD
,/,
1991/CD
,/,
through/IN
Oct./NNP
8/CD
,/,
1994/CD
,/,
to/TO
buy/VB
company/NN
shares/NNS
at/IN
an/DT
expected/JJ
premium/NN
of/IN
75/CD
%/NN
to/TO
85/CD
%/NN
to/TO
the/DT
closing/NN
share/NN
price/NN
when/WRB
terms/NNS
are/VBP
fixed/VBN
Oct./NNP
18/CD
./.
Redland/NNP
International/NNP
Funding/NNP
PLC/NNP
U.K./NNP
parent/NN
150/CD
million/CD
Australian/JJ
dollars/NNS
of/IN
15/CD
3\/8/CD
%/NN
bonds/NNS
due/JJ
Nov./NNP
8/CD
,/,
1996/CD
,/,
priced/VBN
at/IN
101/CD
3\/4/CD
to/TO
yield/VB
15.44/CD
%/NN
less/CC
full/JJ
fees/NNS
,/,
via/IN
JP/NNP
Morgan/NNP
Securities/NNP
Ltd/NNP
./.
Guaranteed/VBN
by/IN
Redland/NNP
PLC/NNP
./.
Fees/NNS
2/CD
./.
Tennessee/NNP
Valley/NNP
Authority/NNP
--/:
A/DT
$/$
4/CD
billion/CD
,/,
three-part/JJ
offering/NN
of/IN
power/NN
bonds/NNS
priced/VBN
through/IN
an/DT
underwriting/NN
group/NN
led/VBN
by/IN
First/NNP
Boston/NNP
Corp/NNP
./.
The/DT
size/NN
of/IN
the/DT
issue/NN
was/VBD
increased/VBN
from/IN
an/DT
originally/RB
planned/VBN
$/$
3/CD
billion/CD
./.
The/DT
first/JJ
part/NN
,/,
consisting/VBG
of/IN
$/$
2/CD
billion/CD
of/IN
bonds/NNS
due/JJ
Oct./NNP
1/CD
,/,
2019/CD
,/,
with/IN
a/DT
five-year/JJ
non-call/JJ
provision/NN
,/,
was/VBD
priced/VBN
as/IN
8/CD
3\/4/CD
%/NN
securities/NNS
at/IN
96.808/CD
to/TO
yield/VB
9.06/CD
%/NN
./.
The/DT
30-year/JJ
issue/NN
was/VBD
priced/VBN
at/IN
a/DT
spread/NN
of/IN
105/CD
basis/NN
points/NNS
above/IN
the/DT
Treasury/NNP
's/POS
30-year/JJ
bellwether/JJ
bond/NN
./.
The/DT
second/JJ
part/NN
,/,
consisting/VBG
of/IN
$/$
1/CD
billion/CD
of/IN
noncallable/JJ
bonds/NNS
due/JJ
Oct./NNP
1/CD
,/,
1999/CD
,/,
was/VBD
priced/VBN
as/IN
8/CD
3\/8/CD
%/NN
securities/NNS
at/IN
99.691/CD
to/TO
yield/VB
8.42/CD
%/NN
./.
The/DT
10-year/JJ
issue/NN
was/VBD
priced/VBN
at/IN
a/DT
spread/NN
of/IN
43/CD
basis/NN
points/NNS
above/IN
the/DT
Treasury/NNP
's/POS
10-year/JJ
note/NN
./.
The/DT
third/JJ
part/NN
,/,
consisting/VBG
of/IN
$/$
1/CD
billion/CD
of/IN
noncallable/JJ
bonds/NNS
due/JJ
Oct./NNP
1/CD
,/,
1994/CD
,/,
was/VBD
priced/VBN
as/IN
8/CD
1\/4/CD
%/NN
securities/NNS
at/IN
99.672/CD
to/TO
yield/VB
8.33/CD
%/NN
./.
The/DT
five-year/JJ
issue/NN
was/VBD
priced/VBN
at/IN
a/DT
spread/NN
of/IN
43/CD
basis/NN
points/NNS
above/IN
the/DT
Treasury/NNP
's/POS
comparable/JJ
note/NN
./.
The/DT
issue/NN
is/VBZ
rated/VBN
triple-A/JJ
by/IN
Moody/NNP
's/POS
and/CC
triple-A/JJ
by/IN
S&P/NNP
./.
Par/NNP
Pharmaceutical/NNP
Inc./NNP
said/VBD
it/PRP
named/VBD
its/PRP$
interim/JJ
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
Kenneth/NNP
I./NNP
Sawyer/NNP
,/,
to/TO
those/DT
posts/NNS
permanently/RB
,/,
and/CC
elected/VBD
him/PRP
to/TO
the/DT
board/NN
./.
Par/NNP
also/RB
said/VBD
it/PRP
was/VBD
advised/VBN
by/IN
the/DT
U.S./NNP
attorney/NN
for/IN
Maryland/NN
that/IN
it/PRP
is/VBZ
one/CD
of/IN
a/DT
number/NN
of/IN
companies/NNS
being/VBG
investigated/VBN
by/IN
a/DT
federal/JJ
grand/JJ
jury/NN
for/IN
alleged/JJ
violations/NNS
of/IN
the/DT
federal/JJ
Food/NNP
,/,
Drug/NNP
and/CC
Cosmetic/NNP
Act/NNP
./.
Par/NNP
,/,
a/DT
generic-drug/NN
maker/NN
that/WDT
has/VBZ
been/VBN
plagued/VBN
by/IN
management/NN
problems/NNS
,/,
was/VBD
already/RB
the/DT
subject/NN
of/IN
a/DT
federal/JJ
criminal/JJ
inquiry/NN
into/IN
the/DT
drug-approval/JJ
process/NN
and/CC
a/DT
Food/NNP
and/CC
Drug/NNP
Administration/NNP
investigation/NN
./.
A/DT
Par/NNP
spokesman/NN
said/VBD
he/PRP
understood/VBD
the/DT
criminal/JJ
investigation/NN
in/IN
Maryland/NNP
relates/VBZ
to/TO
matters/NNS
Par/NNP
disclosed/VBD
in/IN
July/NNP
,/,
when/WRB
Par/NNP
said/VBD
it/PRP
filed/VBD
false/JJ
drug/NN
information/NN
with/IN
the/DT
FDA/NNP
./.
At/IN
the/DT
time/NN
,/,
the/DT
company/NN
said/VBD
it/PRP
was/VBD
recalling/VBG
one/CD
of/IN
its/PRP$
drugs/NNS
and/CC
had/VBD
stopped/VBN
selling/VBG
two/CD
others/NNS
./.
The/DT
spokesman/NN
said/VBD
he/PRP
also/RB
understood/VBD
that/IN
the/DT
inquiry/NN
related/VBD
to/TO
the/DT
existence/NN
of/IN
an/DT
``/``
off-the-record/JJ
''/''
production/NN
book/NN
./.
The/DT
book/NN
noted/VBD
changes/NNS
made/VBN
at/IN
the/DT
manufacturing/NN
level/NN
that/WDT
were/VBD
n't/RB
disclosed/VBN
to/TO
the/DT
FDA/NNP
./.
Par/NNP
said/VBD
it/PRP
is/VBZ
cooperating/VBG
in/IN
the/DT
investigation/NN
./.
Also/RB
yesterday/NN
,/,
Ashok/NNP
Patel/NNP
,/,
a/DT
former/JJ
Par/NNP
official/NN
who/WP
pleaded/VBD
guilty/JJ
to/TO
providing/VBG
an/DT
FDA/NNP
employee/NN
an/DT
illegal/JJ
gratuity/NN
of/IN
$/$
3,000/CD
,/,
was/VBD
sentenced/VBN
by/IN
a/DT
federal/JJ
judge/NN
in/IN
Baltimore/NNP
to/TO
one/CD
year/NN
of/IN
community/NN
service/NN
and/CC
a/DT
$/$
150,000/CD
fine/NN
./.
Mr./NNP
Patel/NNP
also/RB
was/VBD
placed/VBN
on/IN
three/CD
years/NNS
'/POS
probation/NN
./.
Mr./NNP
Patel/NNP
resigned/VBD
as/IN
senior/JJ
vice/NN
president/NN
of/IN
Par/NNP
in/IN
April/NNP
./.
In/IN
July/NNP
,/,
Par/NNP
and/CC
a/DT
60%-owned/JJ
unit/NN
agreed/VBD
to/TO
plead/VB
guilty/JJ
in/IN
that/DT
inquiry/NN
,/,
as/IN
did/VBD
another/DT
former/JJ
Par/NNP
official/NN
./.
Mr./NNP
Sawyer/NNP
began/VBD
running/VBG
the/DT
company/NN
on/IN
an/DT
interim/JJ
basis/NN
in/IN
late/JJ
September/NNP
./.
Par/NNP
said/VBD
it/PRP
selected/VBD
him/PRP
for/IN
the/DT
posts/NNS
of/IN
president/NN
and/CC
chief/JJ
executive/NN
on/IN
a/DT
permanent/JJ
basis/NN
because/IN
of/IN
his/PRP$
experience/NN
in/IN
the/DT
industry/NN
and/CC
his/PRP$
performance/NN
at/IN
Par/NNP
./.
Perry/NNP
Levine/NNP
,/,
chairman/NN
,/,
said/VBD
Mr./NNP
Sawyer/NNP
had/VBD
``/``
taken/VBN
significant/JJ
steps/NNS
''/''
to/TO
restore/VB
the/DT
company/NN
's/POS
credibility/NN
and/CC
sense/NN
of/IN
professionalism/NN
and/CC
integrity/NN
./.
Just/RB
after/IN
midnight/NN
Monday/NNP
,/,
federal/JJ
spending/NN
started/VBD
to/TO
drop/VB
by/IN
$/$
16/CD
billion/CD
./.
What/WP
do/VBP
you/PRP
say/VB
we/PRP
all/DT
close/VBP
down/RP
the/DT
poker/NN
game/NN
,/,
go/VBP
home/NN
and/CC
bank/VBP
the/DT
$/$
16/CD
billion/CD
?/.
That/DT
's/VBZ
essentially/RB
what/WP
budget/NN
director/NN
Richard/NNP
Darman/NNP
is/VBZ
suggesting/VBG
,/,
and/CC
we/PRP
think/VBP
he/PRP
deserves/VBZ
as/RB
much/JJ
support/NN
as/IN
he/PRP
can/MD
get/VB
./.
If/IN
human/JJ
beings/NNS
ca/MD
n't/RB
cut/VB
federal/JJ
spending/NN
honestly/RB
--/:
and/CC
they/PRP
ca/MD
n't/RB
--/:
let/VB
the/DT
computers/NNS
do/VB
it/PRP
./.
Congress/NNP
,/,
with/IN
a/DT
measure/NN
of/IN
White/NNP
House/NNP
complicity/NN
,/,
has/VBZ
been/VBN
manipulating/VBG
the/DT
spending/NN
accounts/NNS
for/IN
years/NNS
under/IN
the/DT
cover/NN
of/IN
omnibus/JJ
appropriations/NNS
bills/NNS
./.
earlier/JJR
manipulations/NNS
,/,
the/DT
current/NN
sequester/NN
of/IN
$/$
16/CD
billion/CD
would/MD
have/VB
been/VBN
even/RB
larger/JJR
./.
We/PRP
suspect/VBP
voters/NNS
are/VBP
fed/VBN
up/RP
with/IN
the/DT
finagling/NN
./.
Consider/VB
,/,
for/IN
instance/NN
,/,
that/IN
even/RB
yesterday/NN
's/VBZ
widely/RB
publicized/VBN
sequester/NN
is/VBZ
likely/JJ
to/TO
be/VB
traduced/VBN
if/IN
business/NN
as/IN
usual/JJ
is/VBZ
allowed/VBN
to/TO
prevail/VB
./.
Under/IN
the/DT
law/NN
,/,
Gramm-Rudman/NNP
's/POS
across-the-board-cuts/NNS
in/IN
federal/JJ
programs/NNS
are/VBP
supposed/VBN
to/TO
be/VB
permanent/JJ
./.
Social/NNP
Security/NNP
and/CC
spending/NN
for/IN
poor/JJ
people/NNS
are/VBP
exempted/VBN
./.
However/RB
,/,
the/DT
Associated/NNP
Press/NNP
's/POS
account/NN
of/IN
the/DT
Monday/NNP
sequester/NN
order/NN
signed/VBN
by/IN
President/NNP
Bush/NNP
neatly/RB
captured/VBD
the/DT
contempt/NN
Congress/NNP
shows/VBZ
toward/IN
the/DT
notion/NN
of/IN
a/DT
legally/RB
binding/JJ
commitment/NN
:/:
``/``
Lawmakers/NNS
have/VBP
been/VBN
saying/VBG
for/IN
weeks/NNS
that/IN
they/PRP
plan/VBP
to/TO
roll/VB
back/RP
the/DT
cuts/NNS
as/RB
soon/RB
as/IN
they/PRP
agree/VBP
to/TO
a/DT
compromise/NN
on/IN
a/DT
deficit-cutting/JJ
bill/NN
./.
''/''
Mr./NNP
Darman/NNP
's/POS
inclination/NN
to/TO
save/VB
the/DT
sequester/NN
was/VBD
backed/VBN
up/RP
yesterday/NN
by/IN
White/NNP
House/NNP
Press/NNP
Secretary/NNP
Marlin/NNP
Fitzwater/NNP
:/:
``/``
There/EX
is/VBZ
some/DT
feeling/NN
here/RB
that/IN
the/DT
cuts/NNS
are/VBP
the/DT
way/NN
to/TO
go/VB
./.
It/PRP
will/MD
reduce/VB
spending/NN
in/IN
a/DT
very/RB
effective/JJ
fashion/NN
./.
''/''
This/DT
attitude/NN
is/VBZ
being/VBG
waved/VBD
away/RP
by/IN
sophisticates/NNS
around/IN
Washington/NNP
as/RB
little/JJ
more/JJR
than/IN
tough/JJ
talk/NN
./.
It/PRP
looks/VBZ
to/TO
us/PRP
like/IN
a/DT
golden/JJ
opportunity/NN
for/IN
George/NNP
Bush/NNP
to/TO
chop/VB
off/RP
at/IN
the/DT
knees/NNS
all/PDT
this/DT
talk/NN
about/IN
a/DT
timid/JJ
,/,
unserious/JJ
presidency/NN
./.
Mr./NNP
Bush/NNP
would/MD
be/VB
acting/VBG
in/IN
the/DT
public/JJ
interest/NN
if/IN
he/PRP
let/VBD
the/DT
Washington/NNP
elites/NNS
who/WP
manipulate/VBP
these/DT
budgets/NNS
--/:
the/DT
bureaucrats/NNS
,/,
the/DT
lobbyists/NNS
,/,
the/DT
congressional/JJ
staffers/NNS
--/:
live/VB
for/IN
just/RB
one/CD
year/NN
on/IN
a/DT
restricted/JJ
diet/NN
./.
Ask/VB
Tommy/NNP
Lasorda/NNP
;/:
thin/JJ
is/VBZ
in/RB
./.
Senator/NNP
Phil/NNP
Gramm/NNP
pointed/VBD
out/RP
Monday/NNP
that/IN
in/IN
the/DT
20/CD
years/NNS
before/IN
Gramm-Rudman/NNP
was/VBD
enacted/VBN
in/IN
1985/CD
,/,
federal/JJ
spending/NN
grew/VBD
by/IN
about/RB
11/CD
%/NN
a/DT
year/NN
;/:
since/IN
the/DT
law/NN
,/,
it/PRP
's/VBZ
grown/VBN
at/IN
under/IN
5/CD
%/NN
annually/RB
./.
Another/DT
major/JJ
factor/NN
in/IN
this/DT
positive/JJ
trend/NN
was/VBD
Ronald/NNP
Reagan/NNP
's/POS
decision/NN
early/RB
in/IN
his/PRP$
presidency/NN
to/TO
fight/VB
the/DT
budget/NN
war/NN
on/IN
the/DT
expenditure/NN
side/NN
rather/RB
than/IN
raising/VBG
taxes/NNS
./.
George/NNP
Bush/NNP
's/POS
continued/JJ
support/NN
of/IN
the/DT
tax/NN
dam/NN
sustains/VBZ
this/DT
strategy/NN
of/IN
pressuring/VBG
Congress/NNP
to/TO
make/VB
choices/NNS
among/IN
competing/VBG
priorities/NNS
,/,
rather/RB
than/IN
just/RB
saying/VBG
yes/UH
to/TO
all/PDT
the/DT
grateful/JJ
special-interest/JJ
constituencies/NNS
that/WDT
fill/VBP
the/DT
PAC/NNP
trough/NN
./.
If/IN
Washington/NNP
's/POS
elites/NNS
ever/RB
succeed/VBP
in/IN
bursting/VBG
the/DT
tax/NN
dam/NN
,/,
Americans/NNPS
will/MD
be/VB
engulfed/VBN
in/IN
a/DT
red/JJ
sea/NN
of/IN
new/JJ
spending/NN
programs/NNS
,/,
such/JJ
as/IN
federalized/JJ
child/NN
care/NN
./.
Child/NN
care/NN
was/VBD
one/CD
of/IN
the/DT
many/JJ
``/``
extraneous/JJ
''/''
bills/NNS
pulled/VBN
out/IN
of/IN
the/DT
Senate/NNP
's/POS
reconciliation/NN
bill/NN
last/JJ
Friday/NNP
./.
Others/NNS
were/VBD
the/DT
capital-gains/NNS
cut/NN
,/,
Section/NNP
89/CD
repeal/NN
,/,
the/DT
disabled/JJ
workers/NNS
bill/NN
,/,
and/CC
the/DT
unprecedented/JJ
reconsideration/NN
of/IN
the/DT
catastrophic/JJ
health/NN
act/NN
./.
All/PDT
this/DT
stuff/NN
still/RB
is/VBZ
in/IN
the/DT
House/NNP
's/POS
1,878-page/JJ
reconciliation/NN
bill/NN
,/,
and/CC
many/JJ
Members/NNS
say/VBP
they/PRP
're/VBP
reluctant/JJ
to/TO
pull/VB
out/RP
cherished/JJ
bills/NNS
,/,
just/RB
to/TO
see/VB
them/PRP
die/VB
./.
Republicans/NNPS
especially/RB
want/VBP
a/DT
guarantee/NN
from/IN
the/DT
House/NNP
leadership/NN
that/IN
they/PRP
'll/MD
get/VB
an/DT
up-or-down/JJ
vote/NN
on/IN
the/DT
bills/NNS
./.
House/NNP
Speaker/NNP
Foley/NNP
ought/MD
to/TO
deliver/VB
that/DT
promise/NN
./.
This/DT
is/VBZ
the/DT
way/NN
government/NN
is/VBZ
supposed/VBN
to/TO
work/VB
,/,
with/IN
politicians/NNS
taking/VBG
responsibility/NN
for/IN
votes/NNS
that/IN
their/PRP$
constituents/NNS
can/MD
identify/VB
,/,
instead/RB
of/IN
concealing/VBG
them/PRP
in/IN
the/DT
great/JJ
reconciliation/NN
garbage/NN
truck/NN
./.
We/PRP
have/VBP
as/RB
much/JJ
nostalgia/NN
as/IN
anyone/NN
for/IN
those/DT
leafy/JJ
,/,
breezy/JJ
days/NNS
in/IN
Washington/NNP
when/WRB
honorable/JJ
men/NNS
and/CC
women/NNS
dickered/VBD
over/IN
budgets/NNS
and/CC
even/RB
log-rolled/VBD
a/DT
bit/NN
to/TO
see/VB
that/IN
the/DT
bridges/NNS
got/VBD
build/VBN
,/,
roads/NNS
paved/VBN
,/,
soldiers/NNS
paid/VBN
or/CC
that/IN
the/DT
desperately/RB
poor/JJ
were/VBD
cared/VBN
for/IN
./.
Those/DT
days/NNS
are/VBP
gone/VBN
./.
Nor/CC
do/VBP
we/PRP
see/VB
any/DT
reason/NN
to/TO
believe/VB
that/IN
a/DT
metropolitan/JJ
Washington/NNP
that/WDT
has/VBZ
gotten/VBN
fat/JJ
and/CC
rich/JJ
and/CC
lazy/JJ
in/IN
the/DT
shadow/NN
of/IN
the/DT
federal/JJ
colossus/NN
will/MD
change/VB
much/RB
on/IN
its/PRP$
own/JJ
initiative/NN
./.
Save/VB
the/DT
sequester/NN
,/,
and/CC
let/VB
Washington/NNP
scream/NN
./.
The/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
said/VBD
a/DT
seat/NN
sold/VBN
for/IN
$/$
436,000/CD
,/,
down/RB
$/$
39,000/CD
from/IN
the/DT
previous/JJ
sale/NN
Oct./NNP
4/CD
./.
Seats/NNS
are/VBP
currently/RB
quoted/VBN
at/IN
$/$
425,000/CD
bid/NN
and/CC
$/$
475,000/CD
offered/VBN
./.
The/DT
$/$
475,000/CD
sale/NN
price/NN
earlier/RBR
this/DT
month/NN
was/VBD
the/DT
lowest/JJS
in/IN
nearly/RB
three/CD
years/NNS
./.
Exchange/NN
seats/NNS
hit/VBD
a/DT
peak/NN
of/IN
$/$
1,150,000/CD
in/IN
September/NNP
1987/CD
./.
The/DT
Canadian/JJ
government/NN
auctioned/VBD
750/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
637.5/CD
million/CD
9.25/CD
%/NN
bonds/NNS
due/JJ
Dec./NNP
15/CD
,/,
1994/CD
./.
The/DT
average/JJ
accepted/JJ
yield/NN
bid/NN
was/VBD
9.617/CD
%/NN
for/IN
a/DT
price/NN
equivalent/NN
of/IN
98.523/CD
./.
Proceeds/NNS
of/IN
the/DT
sale/NN
will/MD
be/VB
used/VBN
to/TO
redeem/VB
C$/$
675/CD
million/CD
of/IN
government/NN
bonds/NNS
maturing/VBG
Nov./NNP
1/CD
and/CC
for/IN
general/JJ
government/NN
purposes/NNS
./.
Northern/NNP
Trust/NNP
Corp./NNP
said/VBD
its/PRP$
board/NN
adopted/VBD
a/DT
shareholder/NN
rights/NNS
plan/NN
aimed/VBN
at/IN
deterring/VBG
unwanted/JJ
takeover/NN
bids/NNS
,/,
but/CC
said/VBD
it/PRP
's/VBZ
not/RB
aware/JJ
of/IN
any/DT
plan/NN
to/TO
acquire/VB
the/DT
banking/NN
concern/NN
./.
Under/IN
Northern/NNP
Trust/NNP
's/POS
plan/NN
,/,
shareholders/NNS
were/VBD
issued/VBN
rights/NNS
that/IN
,/,
in/IN
the/DT
event/NN
of/IN
certain/JJ
attempted/VBN
takeovers/NNS
,/,
allow/VBP
holders/NNS
to/TO
buy/VB
shares/NNS
in/IN
the/DT
company/NN
at/IN
half/JJ
price/NN
./.
National/NNP
Patent/NNP
Development/NNP
Corp./NNP
said/VBD
it/PRP
plans/VBZ
to/TO
purchase/VB
as/RB
many/JJ
as/IN
200,000/CD
common/JJ
shares/NNS
of/IN
its/PRP$
81%-controlled/JJ
Interferon/NNP
Sciences/NNP
Inc./NNP
unit/NN
in/IN
periodic/JJ
,/,
open-market/JJ
purchases/NNS
./.
The/DT
200,000/CD
shares/NNS
are/VBP
about/RB
23/CD
%/NN
of/IN
Interferon/NNP
's/POS
common/JJ
shares/NNS
outstanding/JJ
,/,
excluding/VBG
National/NNP
Patent/NNP
's/POS
stake/NN
./.
Noting/VBG
the/DT
recent/JJ
Food/NNP
and/CC
Drug/NNP
Administration/NNP
approval/NN
of/IN
Interferon/NNP
's/POS
genital/JJ
warts/NNS
treatment/NN
,/,
National/NNP
Patent/NNP
said/VBD
it/PRP
believes/VBZ
Interferon/NNP
's/POS
stock/NN
is/VBZ
undervalued/JJ
./.
Japanese/JJ
investors/NNS
,/,
reassured/VBN
by/IN
Monday/NNP
's/POS
strong/JJ
rally/NN
on/IN
Wall/NNP
Street/NNP
,/,
erased/VBD
most/JJS
of/IN
that/DT
day/NN
's/POS
losses/NNS
on/IN
the/DT
Tokyo/NNP
Stock/NNP
Exchange/NNP
./.
But/CC
analysts/NNS
said/VBD
the/DT
rebound/NN
did/VBD
n't/RB
remove/VB
the/DT
cautious/JJ
mood/NN
from/IN
the/DT
market/NN
./.
In/IN
London/NNP
,/,
stocks/NNS
closed/VBD
lower/JJR
in/IN
volatile/JJ
trading/NN
as/IN
an/DT
opening/NN
rally/NN
was/VBD
obliterated/VBN
by/IN
worse-than-expected/JJ
U.S./NNP
trade/NN
figures/NNS
./.
Paris/NNP
shares/NNS
had/VBD
a/DT
similar/JJ
reaction/NN
,/,
but/CC
most/JJS
other/JJ
European/JJ
bourses/NNS
posted/VBD
gains/NNS
,/,
as/IN
did/VBD
all/PDT
major/JJ
Asian/JJ
and/CC
Pacific/JJ
stock/NN
markets/NNS
./.
Tokyo/NNP
's/POS
Nikkei/NNP
Index/NNP
of/IN
225/CD
stocks/NNS
jumped/VBD
527.39/CD
points/NNS
to/TO
close/VB
at/IN
34996.08/CD
./.
The/DT
rise/NN
came/VBD
a/DT
day/NN
after/IN
the/DT
year/NN
's/POS
biggest/JJS
drop/NN
on/IN
Monday/NNP
,/,
when/WRB
the/DT
Nikkei/NNP
fell/VBD
647.33/CD
,/,
or/CC
1.8/CD
%/NN
,/,
in/IN
response/NN
to/TO
Friday/NNP
's/POS
6.9/CD
%/NN
plunge/NN
on/IN
Wall/NNP
Street/NNP
./.
In/IN
early/JJ
trading/NN
Wednesday/NNP
in/IN
Tokyo/NNP
,/,
the/DT
Nikkei/NNP
index/NN
rose/VBD
19.30/CD
points/NNS
to/TO
35015.38/CD
./.
On/IN
Tuesday/NNP
,/,
the/DT
broader-based/JJ
Tokyo/NNP
Stock/NNP
Price/NNP
Index/NNP
of/IN
issues/NNS
listed/VBN
in/IN
the/DT
first/JJ
section/NN
,/,
which/WDT
fell/VBD
45.66/CD
Monday/NNP
,/,
rose/VBD
41.76/CD
,/,
or/CC
1.61/CD
%/NN
,/,
to/TO
2642.64/CD
./.
Trading/NN
was/VBD
relatively/RB
thin/JJ
at/IN
an/DT
estimated/JJ
650/CD
million/CD
shares/NNS
,/,
though/IN
brisker/JJR
than/IN
Monday/NNP
's/POS
526/CD
million/CD
./.
Advancing/VBG
issues/NNS
outnumbered/VBD
decliners/NNS
821-201/CD
,/,
with/IN
103/CD
unchanged/JJ
./.
``/``
We/PRP
're/VBP
back/RB
to/TO
square/NN
one/CD
,/,
''/''
said/VBD
Simon/NNP
Smithson/NNP
,/,
an/DT
analyst/NN
in/IN
Japan/NNP
for/IN
Kleinwort/NNP
Benson/NNP
International/NNP
Inc/NNP
./.
Japanese/JJ
domestic/JJ
institutions/NNS
,/,
including/VBG
trust/NN
banks/NNS
and/CC
investment/NN
management/NN
firms/NNS
,/,
that/WDT
had/VBD
been/VBN
on/IN
the/DT
sidelines/NNS
during/IN
Monday/NNP
's/POS
fall/NN
were/VBD
back/RB
in/IN
the/DT
market/NN
,/,
analysts/NNS
said/VBD
./.
Foreign/JJ
investors/NNS
reportedly/RB
started/VBD
off/RP
selling/VBG
but/CC
later/RB
joined/VBD
in/IN
the/DT
buying/NN
./.
The/DT
Tokyo/NNP
rally/NN
seemed/VBD
to/TO
confirm/VB
the/DT
view/NN
,/,
frequently/RB
expressed/VBN
in/IN
Japan/NNP
in/IN
the/DT
past/JJ
few/JJ
days/NNS
,/,
that/IN
the/DT
drop/NN
in/IN
New/NNP
York/NNP
was/VBD
a/DT
local/JJ
problem/NN
related/VBN
to/TO
merger/NN
and/CC
acquisition/NN
activity/NN
in/IN
the/DT
U.S/NNP
./.
``/``
This/DT
time/NN
we/PRP
do/VBP
n't/RB
really/RB
have/VB
to/TO
worry/VB
about/IN
Tokyo/NNP
,/,
''/''
said/VBD
an/DT
official/NN
at/IN
Daiwa/NNP
Securities/NNP
Co/NNP
./.
``/``
Nothing/NN
has/VBZ
changed/VBN
fundamentally/RB
in/IN
the/DT
Tokyo/NNP
market/NN
./.
''/''
But/CC
even/RB
though/IN
Tokyo/NNP
appears/VBZ
unharmed/JJ
by/IN
recent/JJ
market/NN
volatility/NN
,/,
analysts/NNS
and/CC
traders/NNS
say/VBP
there/EX
are/VBP
still/RB
a/DT
few/JJ
concerns/NNS
on/IN
the/DT
horizon/NN
./.
In/IN
particular/JJ
,/,
Japanese/JJ
investors/NNS
will/MD
be/VB
keeping/VBG
a/DT
wary/JJ
eye/NN
on/IN
Wall/NNP
Street/NNP
to/TO
see/VB
whether/IN
Monday/NNP
's/POS
88.12-point/JJ
rally/NN
holds/VBZ
up/RP
as/RB
fresh/JJ
U.S./NNP
economic/JJ
data/NNS
are/VBP
released/VBN
./.
``/``
People/NNS
are/VBP
placing/VBG
small/JJ
bets/NNS
./.
There/EX
's/VBZ
no/DT
huge/JJ
buying/NN
,/,
''/''
said/VBD
Stephen/NNP
Hill/NNP
,/,
head/NN
of/IN
equity/NN
sales/NNS
at/IN
Jardine/NNP
Fleming/NNP
Securities/NNP
Ltd./NNP
in/IN
Tokyo/NNP
./.
``/``
Really/RB
brave/JJ
views/NNS
right/RB
now/RB
would/MD
be/VB
foolhardy/JJ
./.
''/''
Yesterday/NN
's/POS
buyers/NNS
favored/VBD
real/JJ
estate/NN
,/,
construction/NN
and/CC
other/JJ
large-capitalization/JJ
issues/NNS
,/,
reflecting/VBG
the/DT
fact/NN
that/IN
many/JJ
Tokyo/NNP
investors/NNS
now/RB
feel/VBP
safer/JJR
with/IN
domestically/RB
oriented/VBN
stocks/NNS
,/,
analysts/NNS
said/VBD
./.
They/PRP
also/RB
are/VBP
concerned/JJ
about/IN
the/DT
persistent/JJ
strength/NN
of/IN
the/DT
dollar/NN
against/IN
the/DT
yen/NN
,/,
as/IN
a/DT
weaker/JJR
yen/NN
leads/VBZ
to/TO
higher/JJR
import/NN
prices/NNS
in/IN
Japan/NNP
and/CC
adds/VBZ
to/TO
domestic/JJ
inflationary/JJ
pressures/NNS
./.
Currency/NN
concerns/NNS
also/RB
weigh/VBP
heavily/RB
on/IN
interest/NN
rate-sensitive/JJ
stocks/NNS
such/JJ
as/IN
banking/NN
and/CC
other/JJ
financial/JJ
issues/NNS
because/IN
of/IN
fears/NNS
that/IN
Japanese/JJ
interest/NN
rates/NNS
might/MD
have/VB
to/TO
rise/VB
to/TO
keep/VB
the/DT
dollar/NN
in/IN
check/NN
./.
Among/IN
steel/NN
shares/NNS
,/,
NKK/NNP
rose/VBD
19/CD
to/TO
705/CD
yen/NN
$/$
4.97/CD
a/DT
share/NN
,/,
and/CC
Nippon/NNP
Steel/NNP
gained/VBD
17/CD
to/TO
735/CD
./.
Construction/NN
shares/NNS
that/WDT
gained/VBD
included/VBD
Shimizu/NNP
,/,
which/WDT
rose/VBD
130/CD
to/TO
2,080/CD
./.
In/IN
the/DT
real/JJ
estate/NN
sector/NN
,/,
Mitsui/NNP
Real/NNP
Estate/NNP
Development/NNP
was/VBD
up/RB
100/CD
at/IN
2,760/CD
,/,
and/CC
Mitsubishi/NNP
Estate/NNP
gained/VBD
80/CD
to/TO
2,360/CD
./.
London/NNP
's/POS
Financial/NNP
Times-Stock/NNP
Exchange/NNP
100-share/JJ
index/NN
fell/VBD
27.9/CD
points/NNS
to/TO
2135.5/CD
./.
It/PRP
was/VBD
down/RB
more/JJR
than/IN
40/CD
points/NNS
a/DT
half-hour/NN
before/IN
the/DT
close/NN
,/,
marking/VBG
a/DT
61.5-point/JJ
turnaround/NN
from/IN
its/PRP$
high/JJ
,/,
reached/VBN
in/IN
the/DT
first/JJ
15/CD
minutes/NNS
of/IN
trading/NN
./.
The/DT
narrower/JJR
Financial/NNP
Times/NNP
30-share/JJ
index/NN
fell/VBD
29.6/CD
to/TO
1730.7/CD
./.
Volume/NN
was/VBD
an/DT
active/JJ
643.3/CD
million/CD
shares/NNS
,/,
about/IN
double/RB
the/DT
recent/JJ
levels/NNS
but/CC
down/RB
from/IN
959.3/CD
million/CD
the/DT
previous/JJ
day/NN
,/,
which/WDT
U.K./NN
traders/NNS
have/VBP
dubbed/VBN
``/``
Manic/NNP
Monday/NNP
./.
''/''
Prices/NNS
opened/VBD
strongly/RB
on/IN
the/DT
basis/NN
of/IN
Monday/NNP
's/POS
Wall/NNP
Street/NNP
rally/NN
and/CC
yesterday/NN
's/POS
gains/NNS
in/IN
Tokyo/NNP
./.
But/CC
the/DT
advance/NN
faltered/VBD
as/IN
index-options/NNS
traders/NNS
and/CC
investors/NNS
jittery/JJ
about/IN
the/DT
U.K./NNP
economic/JJ
outlook/NN
took/VBD
over/RP
./.
The/DT
unexpectedly/RB
wide/JJ
U.S./NNP
August/NNP
trade/NN
deficit/NN
of/IN
$/$
10.77/CD
billion/CD
hit/VBD
an/DT
already/RB
jittery/JJ
U.K./NNP
market/NN
in/IN
midafternoon/NN
./.
Michael/NNP
Hicks/NNP
,/,
who/WP
manages/VBZ
sales/NNS
and/CC
trading/NN
for/IN
brokerage/NN
concern/NN
Societe/NNP
Generale/NNP
Strauss/NNP
Turnbull/NNP
,/,
said/VBD
:/:
``/``
It/PRP
's/VBZ
a/DT
nervous/JJ
market/NN
./.
It/PRP
was/VBD
all/RB
over/IN
the/DT
place/NN
./.
If/IN
you/PRP
bought/VBD
,/,
you/PRP
wish/VBP
you/PRP
had/VBD
n't/RB
,/,
and/CC
if/IN
you/PRP
sold/VBD
,/,
you/PRP
wish/VBP
you/PRP
had/VBD
n't/RB
./.
''/''
He/PRP
said/VBD
the/DT
current/JJ
market/NN
``/``
is/VBZ
all/RB
about/IN
sentiment/NN
,/,
and/CC
the/DT
sentiment/NN
in/IN
London/NNP
is/VBZ
90/CD
%/NN
anxiety/NN
and/CC
worry/NN
./.
''/''
Britain/NNP
's/POS
economic/JJ
fundamentals/NNS
,/,
he/PRP
said/VBD
,/,
``/``
do/VBP
n't/RB
look/VB
very/RB
bright/JJ
./.
''/''
Dealers/NNS
said/VBD
London/NNP
showed/VBD
signs/NNS
of/IN
calming/VBG
in/IN
midafternoon/NN
after/IN
Wall/NNP
Street/NNP
avoided/VBD
sharp/JJ
losses/NNS
despite/IN
the/DT
trade/NN
report/NN
,/,
but/CC
a/DT
wave/NN
of/IN
futures-related/JJ
selling/NN
later/RB
in/IN
the/DT
session/NN
sent/VBD
buyers/NNS
back/RB
to/TO
the/DT
sidelines/NNS
./.
Still/RB
,/,
some/DT
sectors/NNS
found/VBD
buying/NN
interest/NN
after/IN
being/VBG
actively/RB
sold/VBN
in/IN
recent/JJ
weeks/NNS
./.
Merchant/NN
banks/NNS
were/VBD
stronger/JJR
across/IN
the/DT
board/NN
./.
Morgan/NNP
Grenfell/NNP
,/,
which/WDT
has/VBZ
been/VBN
mentioned/VBN
in/IN
takeover/NN
rumors/NNS
,/,
rose/VBD
20/CD
to/TO
392/CD
pence/NNS
$/$
6.18/CD
a/DT
share/NN
./.
S.G./NNP
Warburg/NNP
,/,
a/DT
rumored/JJ
target/NN
of/IN
some/DT
European/JJ
banking/NN
concerns/NNS
,/,
finished/VBD
22/CD
higher/JJR
at/IN
400/CD
./.
Hambros/NNP
rose/VBD
5/CD
to/TO
204/CD
,/,
and/CC
Schroders/NNP
rose/VBD
25/CD
to/TO
#/#
12.75/CD
./.
On/IN
the/DT
corporate/JJ
front/NN
,/,
Ford/NNP
Motor/NNP
announced/VBD
that/IN
it/PRP
raised/VBD
its/PRP$
stake/NN
in/IN
U.K./NNP
luxury/NN
car/NN
maker/NN
Jaguar/NNP
to/TO
10.4/CD
%/NN
from/IN
5/CD
%/NN
./.
Jaguar/NNP
shares/NNS
jumped/VBD
23/CD
before/IN
easing/VBG
to/TO
close/VB
at/IN
654/CD
,/,
up/RB
6/CD
./.
Amstrad/NNP
,/,
a/DT
British/JJ
computer/NN
hardware/NN
and/CC
communications/NNS
equipment/NN
maker/NN
,/,
eased/VBD
4/CD
to/TO
47/CD
./.
It/PRP
announced/VBD
a/DT
52/CD
%/NN
plunge/NN
in/IN
pretax/JJ
profit/NN
for/IN
the/DT
latest/JJS
year/NN
./.
Brewery/NN
stocks/NNS
were/VBD
firm/JJ
to/TO
higher/JJR
on/IN
talk/NN
of/IN
early/JJ
bargain-hunting/NN
,/,
but/CC
most/JJS
ended/VBD
below/IN
their/PRP$
peaks/NNS
./.
Bass/NNP
ended/VBD
up/RP
3/CD
higher/JJR
at/IN
966/CD
,/,
Guinness/NNP
closed/VBD
at/IN
589/CD
,/,
down/RB
7/CD
,/,
and/CC
Scottish/NNP
&/CC
Newcastle/NNP
dropped/VBD
11/CD
to/TO
359/CD
,/,
but/CC
Whitbread/NNP
Class/NNP
A/DT
shares/NNS
rose/VBD
17/CD
to/TO
363/CD
./.
Dealers/NNS
said/VBD
there/EX
was/VBD
late/JJ
talk/NN
of/IN
a/DT
Whitbread/NNP
sale/NN
of/IN
brewing/NN
operations/NNS
to/TO
Scottish/NNP
&/CC
Newcastle/NNP
./.
The/DT
most/RBS
active/JJ
shares/NNS
were/VBD
major/JJ
blue-chips/NNS
,/,
particularly/RB
oils/NNS
and/CC
utilities/NNS
such/JJ
as/IN
British/NNP
Gas/NNP
and/CC
British/NNP
Telecommunications/NNP
./.
Traders/NNS
attributed/VBD
the/DT
action/NN
in/IN
them/PRP
largely/RB
to/TO
defensive/JJ
positioning/NN
in/IN
a/DT
volatile/JJ
market/NN
./.
British/NNP
Gas/NNP
finished/VBD
at/IN
197/CD
,/,
down/RB
2/CD
,/,
on/IN
13/CD
million/CD
shares/NNS
,/,
British/NNP
Petroleum/NNP
fell/VBD
8/CD
to/TO
291/CD
on/IN
9.4/CD
million/CD
shares/NNS
,/,
and/CC
British/NNP
Telecom/NNP
was/VBD
4/CD
lower/JJR
at/IN
261/CD
on/IN
turnover/NN
of/IN
10/CD
million/CD
shares/NNS
./.
Cable/NNP
&/CC
Wireless/NNP
fell/VBD
20/CD
to/TO
478/CD
./.
Also/RB
in/IN
active/JJ
trading/NN
,/,
British/NNP
Steel/NNP
fell/VBD
1/CD
to/TO
124/CD
as/IN
20/CD
million/CD
shares/NNS
changed/VBD
hands/NNS
./.
Racal/NNP
Electric/NNP
,/,
which/WDT
traded/VBD
11/CD
million/CD
shares/NNS
,/,
declined/VBD
12/CD
to/TO
218/CD
./.
In/IN
other/JJ
European/JJ
markets/NNS
,/,
share/NN
prices/NNS
closed/VBD
sharply/RB
higher/JJR
in/IN
Frankfurt/NNP
and/CC
Zurich/NNP
and/CC
posted/VBD
moderate/JJ
rises/NNS
in/IN
Stockholm/NNP
,/,
Amsterdam/NNP
and/CC
Milan/NNP
./.
Paris/NNP
closed/VBD
lower/JJR
,/,
and/CC
most/JJS
Brussels/NNS
shares/NNS
were/VBD
unable/JJ
to/TO
trade/VB
for/IN
a/DT
second/JJ
consecutive/JJ
day/NN
because/IN
of/IN
technical/JJ
problems/NNS
./.
South/JJ
African/JJ
gold/NN
stocks/NNS
closed/VBD
higher/JJR
./.
Elsewhere/RB
,/,
share/NN
prices/NNS
rebounded/VBD
in/IN
Hong/NNP
Kong/NNP
,/,
Sydney/NNP
,/,
Singapore/NNP
,/,
Wellington/NNP
,/,
Taipei/NNP
,/,
Manila/NNP
and/CC
Seoul/NNP
./.
In/IN
Hong/NNP
Kong/NNP
,/,
Sydney/NNP
and/CC
Singapore/NNP
--/:
the/DT
largest/JJS
of/IN
those/DT
exchanges/NNS
--/:
stocks/NNS
recovered/VBD
one-third/NN
to/TO
one-half/NN
of/IN
the/DT
ground/NN
they/PRP
lost/VBD
in/IN
Monday/NNP
's/POS
plunge/NN
,/,
with/IN
major/JJ
market/NN
indexes/NNS
posting/VBG
gains/NNS
of/IN
3.6/CD
%/NN
to/TO
4.4/CD
%/NN
./.
Here/RB
are/VBP
price/NN
trends/NNS
on/IN
the/DT
world/NN
's/POS
major/JJ
stock/NN
markets/NNS
,/,
as/IN
calculated/VBN
by/IN
Morgan/NNP
Stanley/NNP
Capital/NNP
International/NNP
Perspective/NNP
,/,
Geneva/NNP
./.
To/TO
make/VB
them/PRP
directly/RB
comparable/JJ
,/,
each/DT
index/NN
is/VBZ
based/VBN
on/IN
the/DT
close/NN
of/IN
1969/CD
equaling/VBG
100/CD
./.
The/DT
percentage/NN
change/NN
is/VBZ
since/IN
year-end/NN
./.
Zurn/NNP
Industries/NNP
Inc./NNP
said/VBD
it/PRP
received/VBD
approval/NN
to/TO
proceed/VB
on/IN
four/CD
separate/JJ
projects/NNS
with/IN
a/DT
total/JJ
contract/NN
value/NN
of/IN
$/$
59/CD
million/CD
./.
The/DT
projects/NNS
include/VBP
construction/NN
of/IN
a/DT
29,400/CD
kilowatt/NN
waste-to-energy/JJ
plant/NN
for/IN
Ada/NNP
Cogeneration/NNP
L.P./NNP
,/,
Ada/NNP
,/,
Mich./NNP
;/:
a/DT
steam/NN
generating/NN
plant/NN
at/IN
Ontario/NNP
,/,
Calif./NNP
,/,
that/DT
Zurn/NNP
will/MD
own/VB
and/CC
operate/VB
,/,
and/CC
two/CD
waste-water/NN
control/NN
projects/NNS
in/IN
Orange/NNP
County/NNP
,/,
Calif/NNP
./.
AVX/NNP
Corp./NNP
and/CC
Unitrode/NNP
Corp./NNP
said/VBD
they/PRP
completed/VBD
the/DT
previously/RB
reported/VBN
sale/NN
of/IN
Unitrode/NNP
's/POS
San/NNP
Diego-based/JJ
Passive/NNP
Components/NNP
division/NN
to/TO
AVX/NNP
./.
AVX/NNP
,/,
a/DT
New/NNP
York-based/JJ
maker/NN
of/IN
passive/JJ
electronic/JJ
products/NNS
,/,
paid/VBD
$/$
11/CD
million/CD
in/IN
cash/NN
to/TO
Unitrode/NNP
,/,
a/DT
Lexington-based/JJ
maker/NN
of/IN
semiconductor/NN
products/NNS
./.
Passive/NNP
Components/NNP
makes/VBZ
capacitors/NNS
and/CC
filters/NNS
used/VBN
to/TO
protect/VB
electronics/NNS
./.
Consolidated/NNP
Papers/NNP
Inc./NNP
said/VBD
it/PRP
plans/VBZ
to/TO
spend/VB
$/$
495/CD
million/CD
on/IN
new/JJ
paper-manufacturing/JJ
equipment/NN
and/CC
facilities/NNS
./.
The/DT
producer/NN
of/IN
paper/NN
used/VBN
in/IN
magazines/NNS
and/CC
by/IN
commercial/JJ
printers/NNS
said/VBD
spending/VBG
on/IN
the/DT
expansion/NN
is/VBZ
planned/VBN
to/TO
begin/VB
in/IN
the/DT
first/JJ
quarter/NN
of/IN
1990/CD
./.
The/DT
expansion/NN
is/VBZ
subject/JJ
to/TO
approval/NN
by/IN
federal/JJ
and/CC
Wisconsin/NNP
environmental/JJ
regulators/NNS
./.
THE/DT
STOCK/NN
of/IN
Applied/NNP
Power/NNP
Inc./NNP
,/,
which/WDT
split/VBD
2-for-1/JJ
in/IN
May/NNP
,/,
has/VBZ
risen/VBN
since/IN
August/NNP
1988/CD
./.
In/IN
yesterday/NN
's/POS
edition/NN
,/,
it/PRP
was/VBD
incorrectly/RB
stated/VBN
that/IN
the/DT
company/NN
's/POS
share/NN
price/NN
has/VBZ
softened/VBN
since/IN
August/NNP
1988/CD
./.
Who/WP
's/VBZ
News/NN
:/:
With/IN
One/CD
Turnaround/NN
Under/IN
His/PRP$
Belt/NN
,/,
Sim/NNP
Aims/VBZ
for/IN
Another/DT
at/IN
Barry/NNP
Wright/NNP
''/''
--/:
WSJ/NNP
Oct./NNP
17/CD
,/,
1989/CD
)/)
The/DT
stock/NN
market/NN
's/POS
dizzying/JJ
gyrations/NNS
during/IN
the/DT
past/JJ
few/JJ
days/NNS
have/VBP
made/VBN
a/DT
lot/NN
of/IN
individual/JJ
investors/NNS
wish/VB
they/PRP
could/MD
buy/VB
some/DT
sort/NN
of/IN
insurance/NN
./.
After/IN
all/DT
,/,
they/PRP
wo/MD
n't/RB
soon/RB
forget/VB
the/DT
stock/NN
bargains/NNS
that/WDT
became/VBD
available/JJ
after/IN
the/DT
October/NNP
1987/CD
crash/NN
./.
But/CC
while/IN
they/PRP
want/VBP
to/TO
be/VB
on/IN
the/DT
alert/NN
for/IN
similar/JJ
buying/NN
opportunities/NNS
now/RB
,/,
they/PRP
're/VBP
afraid/JJ
of/IN
being/VBG
hammered/VBN
by/IN
another/DT
terrifying/JJ
plunge/NN
./.
The/DT
solution/NN
,/,
at/IN
least/JJS
for/IN
some/DT
investors/NNS
,/,
may/MD
be/VB
a/DT
hedging/NN
technique/NN
that/WDT
's/VBZ
well/RB
known/VBN
to/TO
players/NNS
in/IN
the/DT
stock-options/NNS
market/NN
./.
Called/VBN
a/DT
``/``
married/JJ
put/NN
,/,
''/''
the/DT
technique/NN
is/VBZ
carried/VBN
out/RP
by/IN
purchasing/VBG
a/DT
stock/NN
and/CC
simultaneously/RB
buying/VBG
a/DT
put/NN
option/NN
on/IN
that/DT
stock/NN
./.
It/PRP
's/POS
like/IN
``/``
fire/NN
insurance/NN
,/,
''/''
says/VBZ
Harrison/NNP
Roth/NNP
,/,
the/DT
senior/JJ
options/NNS
strategist/NN
at/IN
Cowen/NNP
&/CC
Co/NNP
./.
Because/IN
a/DT
put/NN
option/NN
gives/VBZ
its/PRP$
owner/NN
the/DT
right/NN
,/,
but/CC
not/RB
the/DT
obligation/NN
,/,
to/TO
sell/VB
a/DT
fixed/JJ
number/NN
of/IN
shares/NNS
of/IN
the/DT
stock/NN
at/IN
a/DT
stated/JJ
price/NN
on/IN
or/CC
before/IN
the/DT
option/NN
's/POS
expiration/NN
date/NN
,/,
the/DT
investor/NN
is/VBZ
protected/VBN
against/IN
a/DT
sudden/JJ
drop/NN
in/IN
the/DT
stock/NN
's/POS
price/NN
./.
But/CC
most/JJS
investment/NN
advisers/NNS
do/VBP
n't/RB
recommend/VB
using/VBG
married/JJ
puts/NNS
all/PDT
the/DT
time/NN
./.
That/DT
's/VBZ
because/IN
the/DT
cost/NN
of/IN
buying/VBG
put/NN
options/NNS
eats/VBZ
into/IN
an/DT
investor/NN
's/POS
profit/NN
when/WRB
stock/NN
prices/NNS
rise/VBP
./.
``/``
This/DT
is/VBZ
the/DT
type/NN
of/IN
fire/NN
insurance/NN
you/PRP
only/RB
buy/VBP
when/WRB
the/DT
nearby/JJ
woods/NNS
are/VBP
on/IN
fire/NN
,/,
''/''
says/VBZ
Mr./NNP
Roth/NNP
./.
``/``
You/PRP
always/RB
want/VB
your/PRP$
house/NN
insured/VBN
,/,
but/CC
you/PRP
do/VBP
n't/RB
always/RB
feel/VB
the/DT
need/NN
for/IN
your/PRP$
investments/NNS
to/TO
be/VB
insured/VBN
./.
''/''
In/IN
addition/NN
to/TO
hedging/VBG
new/JJ
stock/NN
purchases/NNS
,/,
the/DT
married-put/JJ
technique/NN
can/MD
be/VB
used/VBN
to/TO
protect/VB
stocks/NNS
that/IN
an/DT
investor/NN
already/RB
owns/VBZ
./.
In/IN
either/DT
case/NN
,/,
the/DT
investor/NN
faces/VBZ
three/CD
possible/JJ
outcomes/NNS
:/:
--/:
If/IN
the/DT
stock/NN
goes/VBZ
up/RB
in/IN
price/NN
between/IN
now/RB
and/CC
the/DT
put/NN
's/POS
expiration/NN
date/NN
,/,
the/DT
put/NN
will/MD
probably/RB
expire/VB
worthless/JJ
./.
The/DT
investor/NN
will/MD
be/VB
out/IN
the/DT
cost/NN
of/IN
the/DT
put/NN
,/,
which/WDT
is/VBZ
called/VBN
the/DT
``/``
premium/NN
,/,
''/''
and/CC
this/DT
loss/NN
will/MD
reduce/VB
the/DT
stock-market/NN
profit/NN
./.
--/:
If/IN
the/DT
stock/NN
stays/VBZ
at/IN
the/DT
same/JJ
price/NN
between/IN
now/RB
and/CC
the/DT
put/NN
's/POS
expiration/NN
date/NN
,/,
the/DT
investor/NN
's/POS
loss/NN
will/MD
be/VB
limited/VBN
to/TO
the/DT
cost/NN
of/IN
the/DT
put/NN
,/,
less/CC
any/DT
amount/NN
realized/VBN
from/IN
a/DT
closing/NN
sale/NN
of/IN
the/DT
put/NN
./.
The/DT
worst-case/JJ
scenario/NN
would/MD
be/VB
if/IN
the/DT
put/NN
expires/VBZ
worthless/JJ
./.
--/:
If/IN
the/DT
price/NN
of/IN
the/DT
stock/NN
declines/VBZ
,/,
the/DT
put/NN
will/MD
increase/VB
in/IN
value/NN
./.
Once/IN
the/DT
stock/NN
price/NN
is/VBZ
less/JJR
than/IN
the/DT
exercise/NN
price/NN
,/,
or/CC
``/``
strike/NN
price/NN
,/,
''/''
of/IN
the/DT
put/NN
,/,
the/DT
gain/NN
will/MD
match/VB
the/DT
loss/NN
on/IN
the/DT
stock/NN
dollar/NN
for/IN
dollar/NN
./.
The/DT
put/NN
establishes/VBZ
a/DT
minimum/NN
selling/NN
price/NN
for/IN
the/DT
stock/NN
during/IN
its/PRP$
life/NN
./.
When/WRB
a/DT
stock/NN
falls/VBZ
below/IN
the/DT
put/NN
's/POS
strike/NN
price/NN
,/,
the/DT
investor/NN
simply/RB
sells/VBZ
the/DT
stock/NN
at/IN
a/DT
loss/NN
and/CC
simultaneously/RB
sells/VBZ
the/DT
put/NN
at/IN
a/DT
profit/NN
./.
Or/CC
,/,
the/DT
investor/NN
can/MD
exercise/VB
the/DT
put/NN
,/,
by/IN
tendering/VBG
the/DT
stock/NN
to/TO
his/PRP$
or/CC
her/PRP$
broker/NN
in/IN
return/NN
for/IN
payment/NN
from/IN
another/DT
investor/NN
who/WP
has/VBZ
sold/VBN
a/DT
put/NN
on/IN
the/DT
same/JJ
stock/NN
./.
Brokers/NNS
handle/VBP
such/JJ
transactions/NNS
through/IN
the/DT
Options/NNP
Clearing/NNP
Corp./NNP
,/,
which/WDT
guarantees/VBZ
all/DT
option/NN
trades/NNS
./.
The/DT
accompanying/JJ
table/NN
shows/VBZ
how/WRB
this/DT
strategy/NN
would/MD
work/VB
for/IN
three/CD
stocks/NNS
./.
Though/IN
not/RB
reflected/VBN
in/IN
the/DT
table/NN
,/,
an/DT
investor/NN
should/MD
know/VB
that/IN
the/DT
cost/NN
of/IN
the/DT
option/NN
insurance/NN
can/MD
be/VB
partially/RB
offset/VBN
by/IN
any/DT
dividends/NNS
that/WDT
the/DT
stock/NN
pays/VBZ
./.
For/IN
example/NN
,/,
Tenneco/NNP
Inc./NNP
pays/VBZ
a/DT
quarterly/JJ
dividend/NN
of/IN
76/CD
cents/NNS
,/,
which/WDT
would/MD
be/VB
received/VBN
before/IN
the/DT
February/NNP
option/NN
expires/VBZ
and/CC
,/,
thus/RB
,/,
reduce/VB
the/DT
cost/NN
of/IN
using/VBG
the/DT
technique/NN
by/IN
that/DT
amount/NN
./.
In/IN
this/DT
case/NN
,/,
the/DT
investor/NN
's/POS
risk/NN
would/MD
n't/RB
exceed/VB
3.6/CD
%/NN
of/IN
the/DT
total/JJ
investment/NN
./.
To/TO
simplify/VB
the/DT
calculations/NNS
,/,
commissions/NNS
on/IN
the/DT
option/NN
and/CC
underlying/JJ
stock/NN
are/VBP
n't/RB
included/VBN
in/IN
the/DT
table/NN
./.
There/EX
are/VBP
more/JJR
than/IN
650/CD
stocks/NNS
on/IN
which/WDT
options/NNS
may/MD
be/VB
bought/VBN
and/CC
sold/VBN
,/,
including/VBG
some/DT
over-the-counter/JJ
stocks/NNS
./.
But/CC
some/DT
investors/NNS
might/MD
prefer/VB
a/DT
simpler/JJR
strategy/NN
then/RB
hedging/VBG
their/PRP$
individual/JJ
holdings/NNS
./.
They/PRP
can/MD
do/VB
this/DT
by/IN
purchasing/VBG
``/``
index/NN
puts/VBZ
,/,
''/''
which/WDT
are/VBP
simply/RB
put/VBN
options/NNS
on/IN
indexes/NNS
that/WDT
match/VBP
broad/JJ
baskets/NNS
of/IN
stocks/NNS
./.
For/IN
instance/NN
,/,
the/DT
most/RBS
popular/JJ
index/NN
option/NN
is/VBZ
the/DT
S&P/NNP
100/CD
option/NN
,/,
commonly/RB
called/VBN
the/DT
OEX/NNP
./.
It/PRP
is/VBZ
based/VBN
on/IN
the/DT
stocks/NNS
that/WDT
make/VBP
up/RP
Standard/NNP
&/CC
Poor/NNP
's/POS
100-stock/CD
index/NN
./.
Unlike/IN
options/NNS
on/IN
individual/JJ
issues/NNS
,/,
index/NN
options/NNS
are/VBP
settled/VBN
only/RB
in/IN
cash/NN
,/,
and/CC
no/DT
stock/NN
is/VBZ
ever/RB
tendered/VBN
./.
But/CC
while/IN
index/NN
options/NNS
are/VBP
convenient/JJ
,/,
they/PRP
have/VBP
several/JJ
disadvantages/NNS
./.
For/IN
one/CD
thing/NN
,/,
an/DT
investor/NN
's/POS
portfolio/NN
might/MD
not/RB
closely/RB
match/VB
the/DT
S&P/NNP
100/CD
./.
As/IN
a/DT
result/NN
,/,
the/DT
OEX/NNP
insurance/NN
may/MD
or/CC
may/MD
not/RB
fully/RB
protect/VB
an/DT
investor/NN
's/POS
holdings/NNS
in/IN
the/DT
event/NN
of/IN
a/DT
market/NN
decline/NN
./.
In/IN
addition/NN
,/,
OEX/NNP
options/NNS
were/VBD
suspended/VBN
from/IN
trading/VBG
last/JJ
Friday/NNP
afternoon/NN
,/,
after/IN
the/DT
stock-market/NN
sell-off/NN
got/VBD
under/IN
way/NN
and/CC
trading/NN
in/IN
the/DT
S&P-500/NNP
futures/NNS
contract/NN
was/VBD
halted/VBN
./.
So/IN
an/DT
investor/NN
who/WP
wanted/VBD
to/TO
realize/VB
a/DT
profit/NN
on/IN
OEX/NNP
puts/NNS
after/IN
the/DT
trading/NN
suspension/NN
would/MD
have/VB
been/VBN
out/IN
of/IN
luck/NN
./.
On/IN
the/DT
other/JJ
hand/NN
,/,
only/RB
a/DT
handful/NN
of/IN
individual/JJ
issues/NNS
were/VBD
suspended/VBN
from/IN
trading/VBG|NN
on/IN
Friday/NNP
./.
Normally/RB
,/,
once/RB
the/DT
underlying/JJ
investment/NN
is/VBZ
suspended/VBN
from/IN
trading/VBG|NN
,/,
the/DT
options/NNS
on/IN
those/DT
investments/NNS
also/RB
do/VBP
n't/RB
trade/VB
./.
Ultimately/RB
,/,
whether/IN
the/DT
insurance/NN
provided/VBN
by/IN
purchasing/VBG
puts/NNS
is/VBZ
worthwhile/JJ
depends/VBZ
on/IN
the/DT
cost/NN
of/IN
the/DT
options/NNS
./.
That/DT
cost/NN
rises/VBZ
in/IN
times/NNS
of/IN
high/JJ
market/NN
volatility/NN
./.
But/CC
it/PRP
still/RB
might/MD
be/VB
cheaper/JJR
than/IN
taking/VBG
a/DT
major/JJ
hit/NN
./.
The/DT
protection/NN
from/IN
using/VBG
married/JJ
puts/NNS
is/VBZ
clearly/RB
superior/JJ
to/TO
that/DT
afforded/VBN
by/IN
another/DT
options/NNS
strategy/NN
some/DT
investors/NNS
consider/VBP
using/VBG
during/IN
troubled/JJ
times/NNS
:/:
selling/VBG
call/NN
options/NNS
on/IN
stocks/NNS
the/DT
investor/NN
owns/VBZ
./.
A/DT
call/NN
option/NN
is/VBZ
similar/JJ
to/TO
a/DT
put/NN
,/,
except/IN
that/IN
it/PRP
gives/VBZ
its/PRP$
owner/NN
the/DT
right/NN
to/TO
buy/VB
shares/NNS
at/IN
a/DT
stated/JJ
price/NN
until/IN
expiration/NN
./.
Selling/VBG
a/DT
call/NN
option/NN
gives/VBZ
an/DT
investor/NN
a/DT
small/JJ
buffer/NN
against/IN
a/DT
stock-market/NN
decline/NN
./.
That/DT
's/VBZ
because/IN
it/PRP
reduces/VBZ
the/DT
cost/NN
of/IN
the/DT
stock/NN
by/IN
the/DT
amount/NN
of/IN
premium/NN
received/VBN
from/IN
the/DT
sale/NN
of/IN
the/DT
call/NN
./.
But/CC
if/IN
the/DT
price/NN
of/IN
the/DT
stock/NN
rises/VBZ
above/IN
the/DT
strike/NN
price/NN
of/IN
the/DT
option/NN
,/,
the/DT
stock/NN
is/VBZ
almost/RB
certain/JJ
to/TO
be/VB
called/VBN
away/RP
./.
And/CC
in/IN
that/DT
case/NN
,/,
the/DT
investor/NN
misses/VBZ
out/RP
on/IN
any/DT
major/JJ
upside/JJ
gain/NN
./.
These/DT
calculations/NNS
exclude/VBP
the/DT
effect/NN
of/IN
commissions/NNS
paid/VBN
and/CC
dividends/NNS
received/VBN
from/IN
the/DT
stock/NN
./.
All/DT
prices/NNS
are/VBP
as/IN
of/IN
Monday/NNP
's/POS
close/NN
./.
Hopes/NNS
for/IN
quick/JJ
enactment/NN
of/IN
pending/VBG
deficit-reduction/NN
legislation/NN
faded/VBD
as/IN
efforts/NNS
to/TO
streamline/VB
the/DT
House/NNP
version/NN
in/IN
advance/NN
of/IN
a/DT
House-Senate/NNP
conference/NN
broke/VBD
down/RP
./.
House/NNP
leaders/NNS
had/VBD
hoped/VBN
to/TO
follow/VB
the/DT
Senate/NNP
's/POS
lead/NN
by/IN
getting/VBG
an/DT
agreement/NN
from/IN
House/NNP
committee/NN
chairmen/NNS
under/IN
which/WDT
they/PRP
would/MD
drop/VB
items/NNS
that/WDT
would/MD
n't/RB
reduce/VB
the/DT
fiscal/JJ
1990/CD
budget/NN
deficit/NN
from/IN
the/DT
House-passed/JJ
bill/NN
before/IN
the/DT
negotiations/NNS
with/IN
the/DT
Senate/NNP
began/VBD
./.
But/CC
the/DT
effort/NN
became/VBD
snagged/VBN
on/IN
the/DT
question/NN
of/IN
what/WP
would/MD
become/VB
of/IN
other/JJ
issues/NNS
,/,
ranging/VBG
from/IN
cutting/VBG
the/DT
capital-gains/NNS
tax/NN
to/TO
child/NN
care/NN
to/TO
repeal/NN
of/IN
catastrophic-illness/NN
insurance/NN
./.
``/``
Many/JJ
members/NNS
feel/VBP
there/EX
are/VBP
important/JJ
features/NNS
of/IN
the/DT
House/NNP
bill/NN
that/WDT
should/MD
be/VB
enacted/VBN
,/,
''/''
Speaker/NNP
Thomas/NNP
Foley/NNP
D./NNP
,/,
Wash/NNP
./.
``/``
If/IN
there/EX
is/VBZ
any/DT
support/NN
for/IN
reducing/VBG
the/DT
bill/NN
,/,
it/PRP
is/VBZ
conditioned/VBN
on/IN
their/PRP$
desire/NN
to/TO
see/VB
them/PRP
passed/VBN
in/IN
another/DT
form/NN
./.
''/''
Now/RB
those/DT
items/NNS
will/MD
be/VB
discussed/VBN
in/IN
a/DT
House-Senate/NNP
conference/NN
,/,
which/WDT
could/MD
begin/VB
as/RB
soon/RB
as/IN
today/NN
,/,
with/IN
the/DT
expectation/NN
that/IN
they/PRP
could/MD
either/CC
be/VB
resolved/VBN
there/RB
or/CC
placed/VBN
into/IN
other/JJ
legislation/NN
./.
``/``
You/PRP
've/VBP
got/VBN
to/TO
give/VB
these/DT
chairmen/NNS
the/DT
opportunity/NN
to/TO
see/VB
if/IN
they/PRP
can/MD
work/VB
things/NNS
out/RP
,/,
''/''
said/VBD
House/NNP
Budget/NNP
Committee/NNP
Chairman/NNP
Leon/NNP
Panetta/NNP
D./NNP
,/,
Calif/NNP
./.
``/``
This/DT
is/VBZ
a/DT
democratic/JJ
process/NN
--/:
you/PRP
ca/MD
n't/RB
slam-dunk/VB
anything/NN
around/IN
here/RB
./.
''/''
White/NNP
House/NNP
Budget/NNP
Director/NNP
Richard/NNP
Darman/NNP
has/VBZ
said/VBD
he/PRP
would/MD
continue/VB
to/TO
press/VB
to/TO
keep/VB
the/DT
capital-gains/NNS
provision/NN
in/IN
the/DT
final/JJ
version/NN
of/IN
the/DT
bill/NN
unless/IN
the/DT
House/NNP
drops/VBZ
many/JJ
of/IN
its/PRP$
costly/JJ
provisions/NNS
./.
Senate/NNP
leaders/NNS
had/VBD
hoped/VBN
to/TO
be/VB
able/JJ
to/TO
send/VB
a/DT
compromise/NN
version/NN
of/IN
the/DT
measure/NN
to/TO
President/NNP
Bush/NNP
by/IN
the/DT
end/NN
of/IN
the/DT
week/NN
,/,
but/CC
Speaker/NNP
Foley/NNP
said/VBD
that/DT
was/VBD
n't/RB
likely/JJ
./.
Failure/NN
to/TO
pass/VB
the/DT
bill/NN
meant/VBD
that/IN
$/$
16.1/CD
billion/CD
in/IN
across-the-board/JJ
spending/NN
cuts/NNS
took/VBD
effect/NN
Monday/NNP
under/IN
the/DT
Gramm-Rudman/NNP
budget/NN
law/NN
./.
The/DT
bill/NN
must/MD
be/VB
enacted/VBN
before/IN
the/DT
cuts/NNS
can/MD
be/VB
restored/VBN
./.
TRADING/NN
VOLUME/NN
in/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
500/CD
stock-index/NN
futures/NNS
contracts/NNS
on/IN
the/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
Monday/NNP
totaled/VBD
73,803/CD
contracts/NNS
./.
Yesterday/NN
's/POS
edition/NN
incorrectly/RB
reported/VBD
Monday/NNP
's/POS
trading/NN
volume/NN
as/IN
a/DT
record/NN
for/IN
the/DT
S&P/NNP
500/CD
contract/NN
./.
the/DT
Fall/NN
:/:
Stock-Index/NN
Futures/NNS
Provide/VBP
a/DT
Windfall/NN
for/IN
Some/DT
Traders/NNS
--/:
Chicago/NNP
Merc/NNP
's/POS
Trading/NN
Pit/NN
Gets/VBZ
Liquidity/NN
Infusion/NN
After/IN
a/DT
Two-Year/JJ
Wait/NN
''/''
--/:
WSJ/NNP
Oct./NNP
17/CD
,/,
1989/CD
)/)
NCNB/NNP
Corp./NNP
raised/VBD
$/$
1/CD
billion/CD
in/IN
new/JJ
capital/NN
during/IN
the/DT
third/JJ
quarter/NN
./.
In/IN
yesterday/NN
's/POS
edition/NN
,/,
the/DT
amount/NN
of/IN
new/JJ
capital/NN
was/VBD
misstated/VBN
./.
Morgan/NNP
Reports/VBZ
3rd-Period/JJ
Loss/NN
off/IN
$/$
1.82/CD
Billion/CD
--/:
NCNB/NNP
Says/VBZ
Net/NN
Doubled/VBD
,/,
While/IN
Security/NNP
Pacific/NNP
Posts/VBZ
10/CD
%/NN
Rise/NN
in/IN
Profit/NN
''/''
--/:
WSJ/NNP
Oct./NNP
17/CD
,/,
1989/CD
)/)
McCormick/NNP
Capital/NNP
Inc./NNP
said/VBD
its/PRP$
tender/NN
offer/NN
to/TO
buy/VB
back/RP
as/RB
many/JJ
as/IN
1.1/CD
million/CD
,/,
or/CC
44/CD
%/NN
,/,
of/IN
its/PRP$
common/JJ
shares/NNS
at/IN
$/$
3/CD
apiece/RB
,/,
which/WDT
expired/VBD
Friday/NNP
evening/NN
,/,
was/VBD
oversubscribed/VBN
./.
The/DT
developer/NN
and/CC
manager/NN
of/IN
futures-investment/JJ
limited/JJ
partnerships/NNS
said/VBD
preliminary/JJ
results/NNS
indicate/VBP
that/IN
about/RB
1,749,000/CD
shares/NNS
had/VBD
been/VBN
tendered/VBN
,/,
giving/VBG
a/DT
preliminary/JJ
proration/NN
factor/NN
of/IN
0.6287/CD
./.
The/DT
final/JJ
proration/NN
factor/NN
will/MD
be/VB
announced/VBN
Monday/NNP
./.
Northgate/NNP
Exploration/NNP
Ltd./NNP
said/VBD
it/PRP
is/VBZ
proposing/VBG
to/TO
amalgamate/VB
four/CD
of/IN
its/PRP$
associated/JJ
companies/NNS
./.
Under/IN
a/DT
proposed/VBN
two-step/JJ
amalgamation/NN
involving/VBG
share/NN
swaps/NNS
,/,
ABM/NNP
Gold/NNP
Corp./NNP
,/,
a/DT
gold/JJ
exploration/NN
and/CC
management/NN
company/NN
,/,
will/MD
merge/VB
with/IN
Neptune/NNP
Resources/NNP
Corp./NNP
,/,
United/NNP
Gold/NNP
Corp./NNP
and/CC
Inca/NNP
Resources/NNP
Inc/NNP
./.
ABM/NNP
will/MD
also/RB
increase/VB
its/PRP$
stake/NN
in/IN
Sonora/NNP
Gold/NNP
Corp./NNP
to/TO
42/CD
%/NN
from/IN
26/CD
%/NN
./.
Northgate/NNP
said/VBD
it/PRP
will/MD
own/VB
about/RB
50/CD
%/NN
of/IN
the/DT
equity/NN
and/CC
81/CD
%/NN
of/IN
the/DT
votes/NNS
of/IN
ABM/NNP
after/IN
the/DT
amalgamation/NN
./.
The/DT
amalgamations/NNS
are/VBP
subject/JJ
to/TO
regulatory/JJ
approval/NN
and/CC
require/VBP
approval/NN
by/IN
shareholders/NNS
of/IN
ABM/NNP
,/,
Inca/NNP
,/,
United/NNP
and/CC
Neptune/NNP
at/IN
special/JJ
meetings/NNS
on/IN
Nov./NNP
10/CD
./.
Steven/NNP
C./NNP
Walker/NNP
,/,
senior/JJ
vice/NN
president/NN
of/IN
this/DT
bank/NN
holding/NN
company/NN
,/,
was/VBD
named/VBN
president/NN
,/,
chief/JJ
executive/JJ
officer/NN
and/CC
a/DT
director/NN
of/IN
both/CC
Commercial/NNP
National/NNP
and/CC
Commercial/NNP
National/NNP
Bank/NNP
./.
He/PRP
succeeds/VBZ
James/NNP
E./NNP
Burt/NNP
III/NNP
,/,
who/WP
resigned/VBD
from/IN
all/DT
three/CD
posts/NNS
to/TO
pursue/VB
other/JJ
interests/NNS
./.
Cincinnati/NNP
Microwave/NNP
Inc./NNP
said/VBD
it/PRP
introduced/VBD
two/CD
radar/NN
detectors/NNS
./.
One/CD
unit/NN
,/,
called/VBD
the/DT
Escort/NNP
,/,
uses/VBZ
a/DT
new/JJ
digital/JJ
signal-processing/JJ
technology/NN
to/TO
detect/VB
radar/NN
signals/NNS
much/RB
sooner/RBR
than/IN
was/VBD
previously/RB
possible/JJ
,/,
the/DT
company/NN
said/VBD
./.
The/DT
other/JJ
,/,
called/VBN
the/DT
Solo/NNP
,/,
is/VBZ
battery/NN
operated/VBN
and/CC
is/VBZ
the/DT
first/JJ
high-performance/JJ
radar/NN
detector/NN
that/WDT
does/VBZ
n't/RB
need/VB
a/DT
power/NN
cord/NN
,/,
the/DT
company/NN
said/VBD
./.
A/DT
surprising/JJ
surge/NN
in/IN
the/DT
U.S./NNP
trade/NN
deficit/NN
raised/VBD
fears/NNS
that/IN
the/DT
nation/NN
's/POS
export/NN
drive/NN
has/VBZ
stalled/VBN
,/,
and/CC
caused/VBD
new/JJ
turmoil/NN
in/IN
financial/JJ
markets/NNS
./.
The/DT
merchandise/NN
trade/NN
deficit/NN
widened/VBD
in/IN
August/NNP
to/TO
$/$
10.77/CD
billion/CD
,/,
the/DT
Commerce/NNP
Department/NNP
reported/VBD
,/,
a/DT
sharp/JJ
deterioration/NN
from/IN
July/NNP
's/POS
$/$
8.24/CD
billion/CD
and/CC
the/DT
largest/JJS
deficit/NN
of/IN
any/DT
month/NN
this/DT
year/NN
./.
Exports/NNS
fell/VBD
for/IN
the/DT
second/JJ
month/NN
in/IN
a/DT
row/NN
,/,
while/IN
imports/NNS
rose/VBD
to/TO
a/DT
record/NN
./.
``/``
This/DT
is/VBZ
one/CD
of/IN
the/DT
worst/JJS
trade/NN
releases/NNS
we/PRP
've/VBP
had/VBN
since/IN
the/DT
dollar/NN
troughed/VBD
out/RP
in/IN
1987/CD
,/,
''/''
said/VBD
Geoffrey/NNP
Dennis/NNP
,/,
chief/JJ
international/JJ
economist/NN
at/IN
James/NNP
Capel/NNP
Inc/NNP
./.
Like/IN
most/JJS
analysts/NNS
,/,
Mr./NNP
Dennis/NNP
was/VBD
hesitant/JJ
to/TO
read/VB
too/RB
much/JJ
into/IN
one/CD
month/NN
's/POS
numbers/NNS
;/:
but/CC
he/PRP
said/VBD
,/,
``/``
It/PRP
indicates/VBZ
perhaps/RB
that/IN
the/DT
balance/NN
in/IN
the/DT
U.S./NNP
economy/NN
is/VBZ
not/RB
as/RB
good/JJ
as/IN
we/PRP
've/VBP
been/VBN
led/VBN
to/TO
believe/VB
./.
''/''
The/DT
number/NN
had/VBD
a/DT
troubling/JJ
effect/NN
on/IN
Wall/NNP
Street/NNP
,/,
suggesting/VBG
that/IN
more/RBR
fundamental/JJ
economic/JJ
problems/NNS
may/MD
underlie/VB
last/JJ
Friday/NNP
's/POS
stock/NN
market/NN
slide/NN
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
tumbled/VBD
more/JJR
than/IN
60/CD
points/NNS
after/IN
the/DT
report/NN
's/POS
release/NN
,/,
before/IN
recovering/VBG
to/TO
close/VB
18.65/CD
points/NNS
lower/JJR
at/IN
2638.73/CD
./.
``/``
This/DT
bad/JJ
trade/NN
number/NN
raises/VBZ
some/DT
deeper/JJR
issues/NNS
about/IN
the/DT
market/NN
decline/NN
,/,
''/''
said/VBD
Norman/NNP
Robertson/NNP
,/,
chief/JJ
economist/NN
for/IN
Mellon/NNP
Bank/NNP
./.
``/``
It/PRP
raises/VBZ
questions/NNS
about/IN
more/RBR
deep-seated/JJ
problems/NNS
,/,
the/DT
budget/NN
deficit/NN
and/CC
the/DT
trade/NN
deficit/NN
and/CC
the/DT
seeming/JJ
lack/NN
of/IN
ability/NN
to/TO
come/VB
to/TO
grips/NNS
with/IN
them/PRP
./.
''/''
The/DT
trade/NN
report/NN
drew/VBD
yet/RB
another/DT
unsettling/JJ
parallel/NN
to/TO
October/NNP
1987/CD
./.
On/IN
Oct./NNP
14/CD
of/IN
that/DT
year/NN
,/,
the/DT
announcement/NN
of/IN
an/DT
unusually/RB
large/JJ
August/NNP
trade/NN
deficit/NN
helped/VBD
trigger/NN
a/DT
steep/JJ
market/NN
decline/NN
./.
The/DT
slide/NN
continued/VBD
until/IN
the/DT
record/JJ
508-point/JJ
market/NN
drop/NN
on/IN
Oct./NNP
19/CD
./.
In/IN
1987/CD
,/,
however/RB
,/,
the/DT
news/NN
was/VBD
the/DT
latest/JJS
in/IN
a/DT
string/NN
of/IN
disappointments/NNS
on/IN
trade/NN
,/,
while/IN
the/DT
current/JJ
report/NN
comes/VBZ
after/IN
a/DT
period/NN
of/IN
improvement/NN
./.
The/DT
bleak/JJ
trade/NN
report/NN
was/VBD
played/VBN
down/RP
by/IN
the/DT
Bush/NNP
administration/NN
./.
Commerce/NNP
Secretary/NNP
Robert/NNP
Mosbacher/NNP
called/VBD
the/DT
worsening/VBG
trade/NN
figures/NNS
``/``
disappointing/JJ
after/IN
two/CD
very/RB
good/JJ
months/NNS
./.
''/''
And/CC
White/NNP
House/NNP
spokesman/NN
Marlin/NNP
Fitzwater/NNP
said/VBD
the/DT
deficit/NN
was/VBD
``/``
an/DT
unwelcome/JJ
increase/NN
,/,
''/''
adding/VBG
that/IN
``/``
we/PRP
're/VBP
hopeful/JJ
that/IN
it/PRP
simply/RB
is/VBZ
a/DT
one-month/JJ
situation/NN
and/CC
will/MD
turn/VB
around/RB
./.
''/''
But/CC
the/DT
figures/NNS
reinforced/VBD
the/DT
view/NN
of/IN
many/JJ
private/JJ
analysts/NNS
that/IN
the/DT
improvement/NN
in/IN
the/DT
U.S./NNP
trade/NN
deficit/NN
has/VBZ
run/VBN
out/IN
of/IN
steam/NN
./.
``/``
The/DT
figures/NNS
today/NN
add/VBP
further/JJ
evidence/NN
to/TO
support/VB
the/DT
view/NN
that/IN
the/DT
improvement/NN
in/IN
the/DT
U.S./NNP
trade/NN
deficit/NN
has/VBZ
essentially/RB
stalled/VBN
out/IN
at/IN
a/DT
level/NN
of/IN
about/RB
a/DT
$/$
110/CD
billion/CD
annual/JJ
rate/NN
,/,
''/''
said/VBD
Jeffrey/NNP
Scott/NNP
,/,
a/DT
research/NN
fellow/NN
at/IN
the/DT
Institute/NNP
for/IN
International/NNP
Economics/NNP
here/RB
./.
``/``
That/DT
's/VBZ
still/RB
an/DT
improvement/NN
over/IN
last/JJ
year/NN
,/,
but/CC
it/PRP
leads/VBZ
one/PRP
to/TO
conclude/VB
that/IN
basically/RB
we/PRP
've/VBP
gotten/VBN
all/PDT
the/DT
mileage/NN
we/PRP
can/MD
out/IN
of/IN
past/JJ
dollar/NN
depreciation/NN
and/CC
past/JJ
marginal/JJ
cuts/NNS
in/IN
the/DT
federal/JJ
budget/NN
deficit/NN
./.
''/''
Exports/NNS
declined/VBD
for/IN
the/DT
second/JJ
consecutive/JJ
month/NN
in/IN
August/NNP
,/,
slipping/VBG
0.2/CD
%/NN
to/TO
$/$
30.41/CD
billion/CD
,/,
the/DT
Commerce/NNP
Department/NNP
reported/VBD
./.
Imports/NNS
,/,
on/IN
the/DT
other/JJ
hand/NN
,/,
leaped/VBD
6.4/CD
%/NN
to/TO
a/DT
record/JJ
$/$
41.18/CD
billion/CD
./.
Not/RB
only/RB
was/VBD
August/NNP
's/POS
deficit/NN
far/RB
worse/JJR
than/IN
July/NNP
's/POS
,/,
but/CC
the/DT
government/NN
revised/VBD
the/DT
July/NNP
figure/NN
substantially/RB
from/IN
the/DT
$/$
7.58/CD
billion/CD
deficit/NN
it/PRP
had/VBD
initially/RB
reported/VBN
last/JJ
month/NN
./.
Many/JJ
economists/NNS
contend/VBP
that/IN
deep/JJ
cuts/NNS
in/IN
the/DT
U.S./NNP
budget/NN
deficit/NN
are/VBP
needed/VBN
before/IN
further/JJ
trade/NN
improvement/NN
can/MD
occur/VB
./.
That/DT
's/VBZ
because/IN
the/DT
budget/NN
deficit/NN
feeds/VBZ
an/DT
enormous/JJ
appetite/NN
in/IN
this/DT
country/NN
for/IN
both/CC
foreign/JJ
goods/NNS
and/CC
foreign/JJ
capital/NN
,/,
overwhelming/VBG
the/DT
nation/NN
's/POS
capacity/NN
to/TO
export/VB
./.
``/``
People/NNS
are/VBP
sick/JJ
and/CC
tired/JJ
of/IN
hearing/VBG
about/IN
these/DT
deficits/NNS
,/,
but/CC
the/DT
imbalances/NNS
are/VBP
still/RB
there/RB
and/CC
they/PRP
are/VBP
still/RB
a/DT
problem/NN
,/,
''/''
said/VBD
Mr./NNP
Robertson/NNP
./.
In/IN
addition/NN
,/,
the/DT
rise/NN
in/IN
the/DT
value/NN
of/IN
the/DT
dollar/NN
against/IN
foreign/JJ
currencies/NNS
over/IN
the/DT
past/JJ
several/JJ
months/NNS
has/VBZ
increased/VBN
the/DT
price/NN
of/IN
U.S./NNP
products/NNS
in/IN
overseas/JJ
markets/NNS
and/CC
hurt/VBN
the/DT
country/NN
's/POS
competitiveness/NN
./.
Since/IN
March/NNP
,/,
exports/NNS
have/VBP
been/VBN
virtually/RB
flat/JJ
./.
At/IN
the/DT
same/JJ
time/NN
,/,
William/NNP
T./NNP
Archey/NNP
,/,
international/JJ
vice/NN
president/NN
at/IN
the/DT
U.S./NNP
Chamber/NNP
of/IN
Commerce/NNP
,/,
notes/VBZ
:/:
``/``
Clearly/RB
the/DT
stronger/JJR
dollar/NN
has/VBZ
made/VBN
imports/NNS
more/RBR
attractive/JJ
''/''
by/IN
causing/VBG
their/PRP$
prices/NNS
to/TO
decline/VB
./.
Most/JJS
economists/NNS
expect/VBP
the/DT
slowing/VBG
U.S./NNP
economy/NN
to/TO
curb/VB
demand/NN
for/IN
imports/NNS
./.
But/CC
they/PRP
foresee/VBP
little/JJ
substantial/JJ
progress/NN
in/IN
exports/NNS
unless/IN
the/DT
dollar/NN
and/CC
the/DT
federal/JJ
budget/NN
deficit/NN
come/VBD
down/RB
./.
``/``
The/DT
best/JJS
result/NN
we/PRP
could/MD
get/VB
from/IN
these/DT
numbers/NNS
would/MD
be/VB
to/TO
see/VB
the/DT
administration/NN
and/CC
Congress/NNP
get/VB
serious/JJ
about/IN
putting/VBG
the/DT
U.S./NNP
on/IN
an/DT
internationally/RB
competitive/JJ
economic/JJ
footing/NN
,/,
''/''
said/VBD
Howard/NNP
Lewis/NNP
,/,
vice/NN
president/NN
of/IN
international/JJ
economic/JJ
affairs/NNS
at/IN
the/DT
National/NNP
Association/NNP
of/IN
Manufacturers/NNP
./.
``/``
That/DT
must/MD
start/VB
with/IN
cutting/VBG
the/DT
federal/JJ
budget/NN
deficit/NN
./.
''/''
August/NNP
's/POS
decline/NN
in/IN
exports/NNS
reflected/VBD
decreases/NNS
in/IN
sales/NNS
of/IN
industrial/JJ
supplies/NNS
,/,
capital/NN
goods/NNS
and/CC
food/NN
abroad/RB
and/CC
increases/NNS
in/IN
sales/NNS
of/IN
motor/NN
vehicles/NNS
,/,
parts/NNS
and/CC
engines/NNS
./.
The/DT
jump/NN
in/IN
imports/NNS
stemmed/VBD
from/IN
across-the-board/JJ
increases/NNS
in/IN
purchases/NNS
of/IN
foreign/JJ
goods/NNS
./.
The/DT
numbers/NNS
were/VBD
adjusted/VBN
for/IN
usual/JJ
seasonal/JJ
fluctuations/NNS
./.
Alan/NNP
Murray/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
billions/NNS
of/IN
U.S./NNP
dollars/NNS
,/,
not/RB
seasonally/RB
adjusted/VBN
)/)
\*/SYM
Newly/RB
industrialized/VBN
countries/NNS
:/:
Singapore/NNP
,/,
Hong/NNP
Kong/NNP
,/,
Taiwan/NNP
,/,
South/NNP
Korea/NNP
Source/NN
:/:
Commerce/NNP
Department/NNP
Steve/NNP
Jobs/NNP
took/VBD
a/DT
step/NN
back/RB
from/IN
the/DT
frontier/NN
of/IN
personal-computer/NN
technology/NN
in/IN
an/DT
effort/NN
to/TO
spur/VB
sales/NNS
of/IN
Next/NNP
Inc./NNP
's/POS
new/JJ
machine/NN
./.
Mr./NNP
Jobs/NNP
moved/VBD
to/TO
remedy/VB
a/DT
couple/NN
of/IN
his/PRP$
computer/NN
's/POS
drawbacks/NNS
yesterday/NN
by/IN
lowering/VBG
the/DT
entry-level/JJ
price/NN
for/IN
a/DT
Next/NNP
machine/NN
by/IN
$/$
1,500/CD
,/,
or/CC
23/CD
%/NN
,/,
if/IN
the/DT
buyer/NN
chooses/VBZ
a/DT
hard-disk/JJ
drive/NN
as/IN
an/DT
alternative/NN
to/TO
Next/NNP
's/POS
optical-storage/JJ
device/NN
./.
The/DT
hard/JJ
drive/NN
,/,
which/WDT
is/VBZ
the/DT
storage/NN
device/NN
of/IN
choice/NN
for/IN
virtually/RB
every/DT
desktop/JJ
computer/NN
user/NN
,/,
also/RB
now/RB
will/MD
supplement/VB
Next/NNP
's/POS
futuristic/JJ
optical/JJ
device/NN
if/IN
buyers/NNS
pay/VBP
full/JJ
price/NN
./.
Mr./NNP
Jobs/NNP
,/,
co-founder/NN
of/IN
Apple/NNP
Computer/NNP
Inc./NNP
,/,
founded/VBD
Next/NNP
four/CD
years/NNS
ago/RB
in/IN
the/DT
hopes/NNS
of/IN
fomenting/VBG
a/DT
revolution/NN
in/IN
the/DT
way/NN
desktop/JJ
computers/NNS
are/VBP
designed/VBN
and/CC
used/VBN
./.
His/PRP$
Next/NNP
computer/NN
,/,
introduced/VBN
about/IN
a/DT
year/NN
ago/RB
and/CC
aimed/VBD
primarily/RB
at/IN
university/NN
computer/NN
users/NNS
,/,
sports/VBZ
snazzy/JJ
graphics/NNS
,/,
digital/JJ
sound/NN
,/,
built-in/JJ
networking/NN
and/CC
a/DT
sleek/JJ
black/JJ
design/NN
./.
But/CC
the/DT
computer/NN
was/VBD
proving/VBG
a/DT
hard/JJ
sell/NN
because/IN
of/IN
its/PRP$
high/JJ
price/NN
,/,
a/DT
lack/NN
of/IN
software/NN
and/CC
an/DT
optical/JJ
data-storage/JJ
device/NN
that/WDT
was/VBD
too/RB
slow/JJ
./.
The/DT
machine/NN
began/VBD
shipping/VBG
at/IN
the/DT
end/NN
of/IN
last/JJ
year/NN
./.
The/DT
closely/RB
held/VBN
company/NN
has/VBZ
n't/RB
disclosed/VBN
sales/NNS
./.
However/RB
,/,
most/JJS
universities/NNS
that/WDT
have/VBP
bought/VBN
the/DT
machines/NNS
say/VBP
they/PRP
are/VBP
buying/VBG
small/JJ
numbers/NNS
for/IN
evaluation/NN
purposes/NNS
./.
Universities/NNS
can/MD
now/RB
buy/VB
a/DT
Next/NNP
computer/NN
without/IN
an/DT
optical/JJ
storage/NN
device/NN
for/IN
$/$
4,995/CD
./.
A/DT
computer/NN
with/IN
the/DT
optical/JJ
device/NN
will/MD
still/RB
cost/VB
$/$
6,495/CD
,/,
but/CC
from/IN
now/RB
on/RB
Next/NNP
will/MD
outfit/VB
every/DT
computer/NN
with/IN
a/DT
hard/JJ
drive/NN
and/CC
supply/VB
one/CD
at/IN
no/DT
cost/NN
to/TO
those/DT
who/WP
have/VBP
already/RB
bought/VBN
Next/NNP
machines/NNS
./.
Commercial/JJ
customers/NNS
can/MD
purchase/VB
the/DT
same/JJ
system/NN
through/IN
Businessland/NNP
Inc./NNP
,/,
a/DT
computer/NN
retailer/NN
based/VBN
in/IN
San/NNP
Jose/NNP
,/,
Calif./NNP
,/,
for/IN
roughly/RB
$/$
3,000/CD
more/JJR
./.
Mr./NNP
Jobs/NNP
said/VBD
the/DT
changes/NNS
were/VBD
prompted/VBN
by/IN
requests/NNS
from/IN
customers/NNS
who/WP
are/VBP
frustrated/VBN
with/IN
the/DT
performance/NN
of/IN
the/DT
optical/JJ
device/NN
,/,
which/WDT
is/VBZ
n't/RB
offered/VBN
as/IN
standard/JJ
equipment/NN
by/IN
any/DT
rivals/NNS
./.
Another/DT
factor/NN
was/VBD
that/IN
customers/NNS
were/VBD
asking/VBG
,/,
``/``
Why/WRB
do/VBP
n't/RB
you/PRP
give/VB
us/PRP
a/DT
cheaper/JJR
system/NN
?/.
''/''
Mr./NNP
Jobs/NNP
said/VBD
at/IN
a/DT
conference/NN
on/IN
university/NN
computing/NN
here/RB
./.
Optical-storage/JJ
devices/NNS
can/MD
handle/VB
very/RB
large/JJ
amounts/NNS
of/IN
data/NNS
and/CC
make/VB
it/PRP
far/RB
easier/JJR
to/TO
edit/VB
film/NN
clips/NNS
or/CC
audio/JJ
recordings/NNS
with/IN
a/DT
computer/NN
./.
But/CC
the/DT
technology/NN
,/,
while/IN
reliable/JJ
,/,
is/VBZ
far/RB
slower/JJR
than/IN
the/DT
widely/RB
used/VBN
hard/JJ
drives/NNS
./.
To/TO
get/VB
around/IN
the/DT
delays/NNS
caused/VBN
by/IN
the/DT
optical/JJ
device/NN
,/,
Businessland/NNP
,/,
which/WDT
is/VBZ
Next/NNP
's/POS
exclusive/JJ
dealer/NN
to/TO
corporations/NNS
,/,
has/VBZ
for/IN
months/NNS
been/VBN
advising/VBG
customers/NNS
to/TO
purchase/VB
hard/JJ
drives/NNS
with/IN
the/DT
machines/NNS
./.
Next/NNP
's/POS
decision/NN
to/TO
rely/VB
on/IN
the/DT
more-established/JJR
hard/JJ
drive/NN
in/IN
every/DT
Next/NNP
computer/NN
does/VBZ
n't/RB
signal/VB
a/DT
retreat/NN
from/IN
optical/JJ
storage/NN
,/,
said/VBD
Mr./NNP
Jobs/NNP
,/,
who/WP
for/IN
years/NNS
has/VBZ
said/VBD
this/DT
technology/NN
will/MD
play/VB
a/DT
crucial/JJ
role/NN
in/IN
the/DT
next/JJ
decade/NN
./.
``/``
We/PRP
're/VBP
extremely/RB
committed/VBN
to/TO
optical/JJ
storage/NN
technology/NN
''/''
he/PRP
said/VBD
./.
``/``
We/PRP
think/VBP
everything/NN
will/MD
go/VB
this/DT
way/NN
in/IN
a/DT
few/JJ
years/NNS
./.
''/''
He/PRP
said/VBD
that/IN
the/DT
next/JJ
generation/NN
of/IN
optical/JJ
drives/NNS
will/MD
be/VB
as/RB
fast/JJ
as/IN
hard/JJ
drives/NNS
,/,
but/CC
he/PRP
depends/VBZ
on/IN
outside/JJ
suppliers/NNS
for/IN
the/DT
devices/NNS
./.
But/CC
university/NN
computer/NN
specialists/NNS
,/,
who/WP
welcomed/VBD
the/DT
move/NN
,/,
called/VBD
it/PRP
a/DT
necessary/JJ
retreat/NN
from/IN
the/DT
cutting/NN
edge/NN
of/IN
technology/NN
and/CC
one/NN
that/WDT
's/VBZ
likely/JJ
to/TO
increase/VB
Next/NNP
's/POS
sales/NNS
on/IN
campuses/NNS
./.
``/``
From/IN
the/DT
standpoint/NN
of/IN
being/VBG
on/IN
the/DT
forefront/NN
of/IN
technology/NN
,/,
this/DT
is/VBZ
a/DT
step/NN
backward/RB
,/,
''/''
said/VBD
Jerry/NNP
W./NNP
Sprecher/NNP
,/,
a/DT
senior/JJ
computing/NN
manager/NN
for/IN
the/DT
California/NNP
state/NN
university/NN
system/NN
./.
``/``
But/CC
it/PRP
will/MD
definitely/RB
boost/VB
Next/NNP
's/POS
sales/NNS
./.
''/''
Universities/NNS
,/,
however/RB
,/,
say/VBP
Next/NNP
's/POS
prices/NNS
must/MD
go/VB
even/RB
lower/JJR
before/IN
large/JJ
numbers/NNS
of/IN
students/NNS
purchase/VBP
the/DT
machine/NN
./.
``/``
We/PRP
'd/MD
still/RB
like/VB
to/TO
see/VB
a/DT
student/NN
model/NN
,/,
''/''
priced/VBN
at/IN
about/RB
$/$
3,500/CD
,/,
said/VBD
Ronald/NNP
Johnson/NNP
,/,
director/NN
of/IN
academic/JJ
computing/NN
at/IN
Minnesota/NNP
's/POS
Gustavus/NNP
Adolphus/NNP
College/NNP
,/,
which/WDT
has/VBZ
bought/VBN
eight/CD
Next/NNP
machines/NNS
./.
Broad/JJ
acceptance/NN
of/IN
Next/NNP
's/POS
computer/NN
also/RB
is/VBZ
hindered/VBN
by/IN
difficulty/NN
in/IN
distributing/VBG
software/NN
for/IN
it/PRP
./.
Most/JJS
software/NN
is/VBZ
distributed/VBN
on/IN
cheap/JJ
floppy/JJ
disks/NNS
,/,
but/CC
the/DT
Next/NNP
computer/NN
does/VBZ
n't/RB
come/VB
with/IN
a/DT
device/NN
that/WDT
reads/VBZ
them/PRP
./.
Next/NNP
's/POS
computer/NN
also/RB
needs/VBZ
more/JJR
software/NN
applications/NNS
,/,
but/CC
Mr./NNP
Jobs/NNP
said/VBD
he/PRP
expects/VBZ
more/JJR
soon/RB
./.
He/PRP
said/VBD
he/PRP
expects/VBZ
Lotus/NNP
Development/NNP
Corp./NNP
to/TO
introduce/VB
a/DT
Next/NNP
version/NN
of/IN
its/PRP$
popular/JJ
1-2-3/JJ
spreadsheet/NN
program/NN
in/IN
1990/CD
./.
Educators/NNS
added/VBD
that/IN
Next/NNP
needs/NNS
to/TO
soon/RB
offer/VB
a/DT
color/JJ
version/NN
of/IN
its/PRP$
computer/NN
./.
Every/DT
major/JJ
maker/NN
offers/VBZ
computers/NNS
with/IN
color/NN
displays/NNS
./.
Next/NNP
wo/MD
n't/RB
comment/VB
on/IN
when/WRB
it/PRP
will/MD
do/VB
the/DT
same/JJ
,/,
but/CC
is/VBZ
believed/VBN
to/TO
have/VB
a/DT
color/JJ
model/NN
under/IN
development/NN
./.
Donald/NNP
J./NNP
Amaral/NNP
,/,
37/CD
years/NNS
old/JJ
,/,
was/VBD
named/VBN
president/NN
and/CC
chief/JJ
operating/NN
officer/NN
of/IN
this/DT
owner/NN
and/CC
operator/NN
of/IN
hospitals/NNS
,/,
nursing/NN
centers/NNS
and/CC
retirement/NN
hotels/NNS
./.
He/PRP
succeeds/VBZ
as/IN
president/NN
,/,
Don/NNP
Freeberg/NNP
,/,
who/WP
remains/VBZ
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
./.
The/DT
position/NN
of/IN
chief/JJ
operating/NN
officer/NN
is/VBZ
new/JJ
./.
Ashton-Tate/NNP
Corp./NNP
reported/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
19.4/CD
million/CD
,/,
or/CC
74/CD
cents/NNS
a/DT
share/NN
,/,
for/IN
the/DT
third/JJ
quarter/NN
,/,
which/WDT
was/VBD
burdened/VBN
by/IN
severance/NN
costs/NNS
and/CC
the/DT
expense/NN
of/IN
upgrading/VBG
its/PRP$
database/NN
software/NN
inventories/NNS
./.
The/DT
software/NN
company/NN
said/VBD
revenue/NN
slid/VBD
28/CD
%/NN
to/TO
$/$
53.9/CD
million/CD
./.
This/DT
contrasts/VBZ
with/IN
the/DT
year-ago/JJ
quarter/NN
,/,
when/WRB
the/DT
company/NN
had/VBD
net/JJ
income/NN
of/IN
$/$
11.7/CD
million/CD
,/,
or/CC
45/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
75.7/CD
million/CD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Ashton-Tate/NNP
had/VBD
a/DT
loss/NN
of/IN
$/$
27.6/CD
million/CD
,/,
or/CC
$/$
1.05/CD
a/DT
share/NN
./.
In/IN
the/DT
year-ago/JJ
period/NN
,/,
the/DT
company/NN
had/VBD
profit/NN
of/IN
$/$
34.3/CD
million/CD
,/,
or/CC
$/$
1.32/CD
a/DT
share/NN
./.
Revenue/NN
in/IN
the/DT
period/NN
slid/VBD
almost/RB
8/CD
%/NN
to/TO
$/$
203.2/CD
million/CD
from/IN
about/RB
$/$
220/CD
million/CD
last/JJ
year/NN
./.
Edward/NNP
M./NNP
Esber/NNP
,/,
chairman/NN
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
attributed/VBD
the/DT
decline/NN
to/TO
reduced/JJ
domestic/JJ
revenue/NN
because/IN
of/IN
$/$
4.9/CD
million/CD
spent/VBN
to/TO
upgrade/VB
existing/JJ
software/NN
inventories/NNS
to/TO
the/DT
new/JJ
database/NN
IV/NNP
Version/NNP
1.1/CD
,/,
and/CC
$/$
1.8/CD
million/CD
spent/VBN
on/IN
the/DT
recent/JJ
reduction/NN
in/IN
work/NN
force/NN
./.
He/PRP
said/VBD
the/DT
company/NN
was/VBD
``/``
encouraged/VBN
by/IN
feedback/NN
''/''
it/PRP
received/VBD
from/IN
selected/JJ
customers/NNS
now/RB
testing/VBG
Version/NNP
1.1/CD
./.
The/DT
red/JJ
ink/NN
came/VBD
as/IN
no/DT
surprise/NN
to/TO
Wall/NNP
Street/NNP
,/,
but/CC
analysts/NNS
said/VBD
they/PRP
saw/VBD
ominous/JJ
hints/NNS
of/IN
a/DT
further/JJ
delay/NN
in/IN
volume/NN
shipments/NNS
of/IN
Version/NNP
1.1/CD
,/,
a/DT
harbinger/NN
of/IN
continued/JJ
losses/NNS
in/IN
the/DT
fourth/JJ
quarter/NN
./.
``/``
The/DT
loss/NN
is/VBZ
in/IN
line/NN
with/IN
our/PRP$
expectations/NNS
,/,
''/''
said/VBD
John/NNP
C./NNP
Maxwell/NNP
III/NNP
,/,
an/DT
analyst/NN
with/IN
Dillon/NNP
,/,
Read/NNP
&/CC
Co./NNP
in/IN
New/NNP
York/NNP
./.
He/PRP
added/VBD
gross/JJ
margins/NNS
and/CC
operating/NN
profit/NN
``/``
eroded/VBD
quite/RB
dramatically/RB
''/''
from/IN
the/DT
prior/JJ
quarter/NN
,/,
along/IN
with/IN
sales/NNS
of/IN
existing/JJ
software/NN
product/NN
lines/NNS
like/IN
Multimate/NNP
and/CC
Framework/NNP
./.
``/``
The/DT
success/NN
of/IN
a/DT
new/JJ
product/NN
in/IN
the/DT
database/NN
line/NN
is/VBZ
needed/VBN
./.
And/CC
while/IN
the/DT
company/NN
has/VBZ
n't/RB
made/VBN
a/DT
definite/JJ
statement/NN
,/,
it/PRP
now/RB
looks/VBZ
like/IN
that/DT
's/VBZ
not/RB
going/VBG
to/TO
be/VB
anytime/RB
soon/RB
,/,
''/''
Mr./NNP
Maxwell/NNP
said/VBD
./.
The/DT
company/NN
said/VBD
in/IN
a/DT
statement/NN
that/IN
it/PRP
expects/VBZ
to/TO
ship/VB
new/JJ
products/NNS
``/``
during/IN
the/DT
next/JJ
two/CD
quarters/NNS
./.
''/''
``/``
It/PRP
now/RB
looks/VBZ
like/IN
database/NN
IV/NNP
Version/NNP
1.1/CD
is/VBZ
n't/RB
going/VBG
to/TO
be/VB
{/(
widely/RB
}/)
available/JJ
until/IN
the/DT
first/JJ
quarter/NN
of/IN
1990/CD
,/,
''/''
said/VBD
David/NNP
Bayer/NNP
,/,
an/DT
analyst/NN
with/IN
Montgomery/NNP
Securities/NNP
in/IN
San/NNP
Francisco/NNP
./.
``/``
This/DT
is/VBZ
the/DT
second/JJ
delay/NN
now/RB
in/IN
getting/VBG
the/DT
product/NN
out/IN
the/DT
door/NN
./.
It/PRP
does/VBZ
prolong/VB
the/DT
pain/NN
somewhat/RB
./.
''/''
Mr./NNP
Maxwell/NNP
said/VBD
unless/IN
the/DT
company/NN
can/MD
start/VB
shipments/NNS
of/IN
the/DT
new/JJ
product/NN
sometime/RB
this/DT
quarter/NN
,/,
the/DT
fourth-quarter/JJ
loss/NN
is/VBZ
likely/JJ
to/TO
be/VB
``/``
comparable/JJ
to/TO
the/DT
third/JJ
quarter/NN
's/POS
./.
''/''
If/IN
the/DT
company/NN
can/MD
start/VB
to/TO
ship/VB
during/IN
this/DT
quarter/NN
,/,
it/PRP
could/MD
stem/VB
some/DT
,/,
if/IN
not/RB
all/DT
of/IN
the/DT
red/JJ
ink/NN
,/,
he/PRP
said/VBD
./.
In/IN
national/JJ
over-the-counter/JJ
trading/NN
,/,
Ashton-Tate/NNP
closed/VBD
yesterday/NN
at/IN
$/$
10/CD
a/DT
share/NN
,/,
up/RB
62.5/CD
cents/NNS
./.
Tuesday/NNP
,/,
October/NNP
17/CD
,/,
1989/CD
The/DT
key/JJ
U.S./NNP
and/CC
foreign/JJ
annual/JJ
interest/NN
rates/NNS
below/RB
are/VBP
a/DT
guide/NN
to/TO
general/JJ
levels/NNS
but/CC
do/VBP
n't/RB
always/RB
represent/VB
actual/JJ
transactions/NNS
./.
PRIME/JJ
RATE/NN
:/:
10/CD
1\/2/CD
%/NN
./.
The/DT
base/NN
rate/NN
on/IN
corporate/JJ
loans/NNS
at/IN
large/JJ
U.S./NNP
money/NN
center/NN
commercial/JJ
banks/NNS
./.
FEDERAL/JJ
FUNDS/NNS
:/:
8/CD
11\/16/CD
%/NN
high/JJ
,/,
8/CD
5\/8/CD
%/NN
low/JJ
,/,
8/CD
5\/8/CD
%/NN
near/IN
closing/NN
bid/NN
,/,
8/CD
11\/16/CD
%/NN
offered/VBN
./.
Reserves/NNS
traded/VBD
among/IN
commercial/JJ
banks/NNS
for/IN
overnight/JJ
use/NN
in/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
or/CC
more/JJR
./.
Source/NN
:/:
Fulton/NNP
Prebon/NNP
U.S.A/NN
./.
Inc/NNP
./.
DISCOUNT/NN
RATE/NN
:/:
7/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
depository/JJ
institutions/NNS
by/IN
the/DT
New/NNP
York/NNP
Federal/NNP
Reserve/NNP
Bank/NNP
./.
CALL/JJ
MONEY/NN
:/:
9/CD
3\/4/CD
%/NN
to/TO
10/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
brokers/NNS
on/IN
stock/NN
exchange/NN
collateral/NN
./.
COMMERCIAL/JJ
PAPER/NN
placed/VBN
directly/RB
by/IN
General/NNP
Motors/NNP
Acceptance/NNP
Corp./NNP
:/:
8.40/CD
%/NN
30/CD
to/TO
44/CD
days/NNS
;/:
8.325/CD
%/NN
45/CD
to/TO
59/CD
days/NNS
;/:
8.10/CD
%/NN
60/CD
to/TO
89/CD
days/NNS
;/:
8/CD
%/NN
90/CD
to/TO
119/CD
days/NNS
;/:
7.85/CD
%/NN
120/CD
to/TO
149/CD
days/NNS
;/:
7.70/CD
%/NN
150/CD
to/TO
179/CD
days/NNS
;/:
7.375/CD
%/NN
180/CD
to/TO
270/CD
days/NNS
./.
COMMERCIAL/NNP
PAPER/NNP
:/:
High-grade/JJ
unsecured/JJ
notes/NNS
sold/VBN
through/IN
dealers/NNS
by/IN
major/JJ
corporations/NNS
in/IN
multiples/NNS
of/IN
$/$
1,000/CD
:/:
8.50/CD
%/NN
30/CD
days/NNS
;/:
8.40/CD
%/NN
60/CD
days/NNS
;/:
8.375/CD
%/NN
90/CD
days/NNS
./.
CERTIFICATES/NNS
OF/IN
DEPOSIT/NN
:/:
8.05/CD
%/NN
one/CD
month/NN
;/:
8.02/CD
%/NN
two/CD
months/NNS
;/:
8/CD
%/NN
three/CD
months/NNS
;/:
7.98/CD
%/NN
six/CD
months/NNS
;/:
7.95/CD
%/NN
one/CD
year/NN
./.
Average/JJ
of/IN
top/JJ
rates/NNS
paid/VBN
by/IN
major/JJ
New/NNP
York/NNP
banks/NNS
on/IN
primary/JJ
new/JJ
issues/NNS
of/IN
negotiable/JJ
C.D.s/NNS
,/,
usually/RB
on/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
and/CC
more/JJR
./.
The/DT
minimum/JJ
unit/NN
is/VBZ
$/$
100,000/CD
./.
Typical/JJ
rates/NNS
in/IN
the/DT
secondary/JJ
market/NN
:/:
8.50/CD
%/NN
one/CD
month/NN
;/:
8.50/CD
%/NN
three/CD
months/NNS
;/:
8.45/CD
%/NN
six/CD
months/NNS
./.
BANKERS/NNS
ACCEPTANCES/NNS
:/:
8.38/CD
%/NN
30/CD
days/NNS
;/:
8.28/CD
%/NN
60/CD
days/NNS
;/:
8.23/CD
%/NN
90/CD
days/NNS
;/:
8.13/CD
%/NN
120/CD
days/NNS
;/:
8.03/CD
%/NN
150/CD
days/NNS
;/:
7.93/CD
%/NN
180/CD
days/NNS
./.
Negotiable/JJ
,/,
bank-backed/JJ
business/NN
credit/NN
instruments/NNS
typically/RB
financing/VBG
an/DT
import/NN
order/NN
./.
LONDON/NNP
LATE/JJ
EURODOLLARS/NNS
:/:
8/CD
5\/8/CD
%/NN
to/TO
8/CD
1\/2/CD
%/NN
one/CD
month/NN
;/:
8/CD
9\/16/CD
%/NN
to/TO
8/CD
7\/16/CD
%/NN
two/CD
months/NNS
;/:
8/CD
9\/16/CD
%/NN
to/TO
8/CD
7\/16/CD
%/NN
three/CD
months/NNS
;/:
8/CD
1\/2/CD
%/NN
to/TO
8/CD
3\/8/CD
%/NN
four/CD
months/NNS
;/:
8/CD
7\/16/CD
%/NN
to/TO
8/CD
5\/16/CD
%/NN
five/CD
months/NNS
;/:
8/CD
7\/16/CD
%/NN
to/TO
8/CD
5\/16/CD
%/NN
six/CD
months/NNS
./.
LONDON/NNP
INTERBANK/JJ
OFFERED/VBN
RATES/NNS
LIBOR/NNP
8/CD
5\/8/CD
%/NN
one/CD
month/NN
;/:
8/CD
9\/16/CD
%/NN
three/CD
months/NNS
;/:
8/CD
7\/16/CD
%/NN
six/CD
months/NNS
;/:
8/CD
7\/16/CD
%/NN
one/CD
year/NN
./.
The/DT
average/NN
of/IN
interbank/NN
offered/VBN
rates/NNS
for/IN
dollar/NN
deposits/NNS
in/IN
the/DT
London/NNP
market/NN
based/VBN
on/IN
quotations/NNS
at/IN
five/CD
major/JJ
banks/NNS
./.
FOREIGN/JJ
PRIME/JJ
RATES/NNS
:/:
Canada/NNP
13.50/CD
%/NN
;/:
Germany/NNP
8.50/CD
%/NN
;/:
Japan/NNP
4.875/CD
%/NN
;/:
Switzerland/NNP
8.50/CD
%/NN
;/:
Britain/NNP
15/CD
%/NN
./.
These/DT
rate/NN
indications/NNS
are/VBP
n't/RB
directly/RB
comparable/JJ
;/:
lending/NN
practices/NNS
vary/VBP
widely/RB
by/IN
location/NN
./.
TREASURY/NN
BILLS/NNS
:/:
Results/NNS
of/IN
the/DT
Monday/NNP
,/,
October/NNP
16/CD
,/,
1989/CD
,/,
auction/NN
of/IN
short-term/JJ
U.S./NNP
government/NN
bills/NNS
,/,
sold/VBN
at/IN
a/DT
discount/NN
from/IN
face/NN
value/NN
in/IN
units/NNS
of/IN
$/$
10,000/CD
to/TO
$/$
1/CD
million/CD
:/:
7.37/CD
%/NN
13/CD
weeks/NNS
;/:
7.42/CD
%/NN
26/CD
weeks/NNS
./.
FEDERAL/NNP
HOME/NNP
LOAN/NNP
MORTGAGE/NNP
CORP/NNP
./.
Freddie/NNP
Mac/NNP
yields/NNS
on/IN
30-year/JJ
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
./.
9.88/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
7.875/CD
%/NN
,/,
2/CD
%/NN
rate/NN
capped/VBN
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNP
Inc/NNP
./.
FEDERAL/NNP
NATIONAL/NNP
MORTGAGE/NNP
ASSOCIATION/NNP
Fannie/NNP
Mae/NNP
yields/NNS
on/IN
30/CD
year/NN
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
par/NN
9.80/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
8.70/CD
%/NN
,/,
6\/2/CD
rate/NN
capped/VBN
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNP
Inc/NNP
./.
MERRILL/NNP
LYNCH/NNP
READY/NNP
ASSETS/NNP
TRUST/NNP
:/:
8.50/CD
%/NN
./.
Annualized/JJ
average/JJ
rate/NN
of/IN
return/NN
after/IN
expenses/NNS
for/IN
the/DT
past/JJ
30/CD
days/NNS
;/:
not/RB
a/DT
forecast/NN
of/IN
future/JJ
returns/NNS
./.
Ethyl/NNP
Corp./NNP
reported/VBD
that/IN
third-quarter/JJ
net/JJ
income/NN
fell/VBD
12/CD
%/NN
from/IN
a/DT
year-earlier/JJ
quarter/NN
helped/VBN
by/IN
a/DT
gain/NN
from/IN
discontinued/VBN
operations/NNS
./.
Profit/NN
from/IN
continuing/VBG
operations/NNS
rose/VBD
19/CD
%/NN
./.
The/DT
chemicals/NNS
and/CC
insurance/NN
company/NN
said/VBD
net/NN
in/IN
the/DT
latest/JJS
quarter/NN
was/VBD
$/$
54.8/CD
million/CD
,/,
or/CC
45/CD
cents/NNS
a/DT
share/NN
./.
In/IN
the/DT
year-earlier/JJ
quarter/NN
,/,
net/NN
was/VBD
$/$
62.2/CD
million/CD
,/,
or/CC
51/CD
cents/NNS
a/DT
share/NN
./.
The/DT
previous-year/JJ
quarter/NN
included/VBD
$/$
16.1/CD
million/CD
from/IN
businesses/NNS
spun/VBN
off/RP
as/IN
Tredegar/NNP
Industries/NNP
Inc/NNP
./.
Revenue/NN
was/VBD
$/$
613.7/CD
million/CD
,/,
up/RB
18/CD
%/NN
from/IN
$/$
521.2/CD
million/CD
a/DT
year/NN
ago/RB
./.
Ethyl/NNP
said/VBD
pretax/JJ
profit/NN
from/IN
its/PRP$
insurance/NN
segment/NN
,/,
excluding/VBG
investment/NN
gains/NNS
,/,
rose/VBD
28/CD
%/NN
in/IN
the/DT
latest/JJS
quarter/NN
to/TO
$/$
28.6/CD
million/CD
from/IN
$/$
22.4/CD
million/CD
./.
In/IN
the/DT
chemicals/NNS
segment/NN
,/,
pretax/JJ
profit/NN
rose/VBD
7/CD
%/NN
to/TO
$/$
69.2/CD
million/CD
from/IN
$/$
64.9/CD
million/CD
./.
The/DT
company/NN
's/POS
chemicals/NNS
interests/NNS
include/VBP
,/,
among/IN
other/JJ
things/NNS
,/,
petroleum/NN
additives/NNS
,/,
pharmaceuticals/NNS
ingredients/NNS
and/CC
polysilicon/NN
used/VBN
by/IN
the/DT
semiconductor/NN
industry/NN
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Ethyl/NNP
said/VBD
net/NN
fell/VBD
2/CD
%/NN
to/TO
$/$
168.7/CD
million/CD
,/,
or/CC
$/$
1.40/CD
a/DT
share/NN
,/,
from/IN
$/$
172.2/CD
million/CD
,/,
$/$
1.42/CD
a/DT
share/NN
,/,
a/DT
year/NN
ago/RB
./.
Net/NN
in/IN
the/DT
latest/JJS
period/NN
included/VBD
$/$
11.9/CD
million/CD
from/IN
discontinued/VBN
operations/NNS
and/CC
a/DT
charge/NN
of/IN
$/$
6.2/CD
million/CD
from/IN
a/DT
plant/NN
closing/NN
./.
In/IN
the/DT
year-ago/JJ
period/NN
,/,
net/NN
included/VBD
$/$
32.7/CD
million/CD
from/IN
discontinued/VBN
operations/NNS
./.
Revenue/NN
was/VBD
$/$
1.79/CD
billion/CD
,/,
up/RB
18/CD
%/NN
from/IN
$/$
1.52/CD
billion/CD
a/DT
year/NN
earlier/RBR
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Ethyl/NNP
closed/VBN
at/IN
$/$
25.875/CD
a/DT
share/NN
,/,
up/RB
12.5/CD
cents/NNS
./.
Tribune/NNP
Co./NNP
,/,
helped/VBN
by/IN
a/DT
hefty/JJ
boost/NN
in/IN
performance/NN
at/IN
its/PRP$
broadcasting/NN
and/CC
entertainment/NN
operations/NNS
,/,
said/VBD
net/JJ
income/NN
jumped/VBD
21/CD
%/NN
in/IN
its/PRP$
third/JJ
quarter/NN
ended/VBN
Sept./NNP
24/CD
on/IN
a/DT
3/CD
%/NN
increase/NN
in/IN
revenue/NN
./.
The/DT
broadcasting/NN
and/CC
newspaper/NN
concern/NN
,/,
based/VBN
in/IN
Chicago/NNP
,/,
said/VBD
net/NN
was/VBD
$/$
62.7/CD
million/CD
,/,
or/CC
77/CD
cents/NNS
a/DT
primary/JJ
share/NN
,/,
up/RB
from/IN
$/$
51.6/CD
million/CD
,/,
or/CC
69/CD
cents/NNS
a/DT
share/NN
./.
Per-share/JJ
figures/NNS
this/DT
year/NN
reflect/VBP
$/$
6.8/CD
million/CD
in/IN
preferred-share/JJ
dividends/NNS
;/:
the/DT
1988/CD
quarter/NN
did/VBD
n't/RB
have/VB
such/PDT
a/DT
payout/NN
./.
Revenue/NN
rose/VBD
to/TO
$/$
590.7/CD
million/CD
from/IN
$/$
575.1/CD
million/CD
./.
Nine-month/JJ
net/NN
climbed/VBD
19/CD
%/NN
to/TO
$/$
174.8/CD
million/CD
,/,
or/CC
$/$
2.21/CD
a/DT
primary/JJ
share/NN
,/,
from/IN
$/$
147.5/CD
million/CD
,/,
or/CC
$/$
1.94/CD
a/DT
share/NN
./.
Nine-month/JJ
per-share/JJ
figures/NNS
for/IN
1989/CD
reflect/VBP
$/$
12.9/CD
million/CD
in/IN
preferred/JJ
dividends/NNS
that/WDT
had/VBD
no/DT
counterpart/NN
in/IN
the/DT
year-earlier/JJ
quarter/NN
./.
Revenue/NN
rose/VBD
4/CD
%/NN
to/TO
$/$
1.79/CD
billion/CD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
Friday/NNP
,/,
Tribune/NNP
closed/VBD
at/IN
$/$
49.375/CD
,/,
down/RB
$/$
4.75/CD
./.
Enserch/NNP
Corp./NNP
said/VBD
about/RB
12/CD
million/CD
,/,
or/CC
93/CD
%/NN
,/,
of/IN
the/DT
publicly/RB
traded/VBN
units/NNS
of/IN
its/PRP$
limited/JJ
partnership/NN
,/,
Enserch/NNP
Exploration/NNP
Partners/NNP
Ltd./NNP
,/,
were/VBD
tendered/VBN
in/IN
response/NN
to/TO
an/DT
offer/NN
that/WDT
expired/VBD
Monday/NNP
./.
Enserch/NNP
said/VBD
the/DT
tendered/VBN
units/NNS
will/MD
raise/VB
its/PRP$
ownership/NN
of/IN
the/DT
partnership/NN
to/TO
more/JJR
than/IN
99/CD
%/NN
from/IN
87/CD
%/NN
./.
About/RB
900,000/CD
units/NNS
will/MD
continue/VB
to/TO
be/VB
publicly/RB
traded/VBN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Enserch/NNP
said/VBD
./.
Enserch/NNP
had/VBD
offered/VBN
one-half/NN
a/DT
share/NN
of/IN
its/PRP$
common/JJ
and/CC
$/$
1/CD
in/IN
cash/NN
for/IN
each/DT
unit/NN
./.
The/DT
public/JJ
sector/NN
borrowing/NN
requirement/NN
,/,
the/DT
most/RBS
widely/RB
used/VBN
measure/NN
of/IN
Britain/NNP
's/POS
government/NN
deficit/NN
or/CC
surplus/NN
,/,
showed/VBD
a/DT
deficit/NN
of/IN
#/#
200/CD
million/CD
in/IN
September/NNP
,/,
compared/VBN
with/IN
a/DT
deficit/NN
of/IN
#/#
765/CD
million/CD
in/IN
August/NNP
and/CC
a/DT
deficit/NN
of/IN
#/#
1.08/CD
billion/CD
in/IN
September/NNP
1988/CD
,/,
the/DT
Treasury/NNP
said/VBD
./.
In/IN
the/DT
six/CD
months/NNS
since/IN
the/DT
current/JJ
fiscal/JJ
year/NN
began/VBD
April/NNP
1/CD
,/,
the/DT
surplus/NN
totaled/VBD
#/#
500/CD
million/CD
,/,
compared/VBN
with/IN
a/DT
surplus/NN
of/IN
#/#
3.6/CD
billion/CD
in/IN
the/DT
year-earlier/JJ
period/NN
./.
The/DT
government/NN
is/VBZ
projecting/VBG
a/DT
#/#
14/CD
billion/CD
surplus/NN
for/IN
the/DT
fiscal/JJ
year/NN
./.
The/DT
reported/VBN
figures/NNS
for/IN
the/DT
public/JJ
sector/NN
borrowing/NN
requirement/NN
include/VBP
receipts/NNS
from/IN
the/DT
sale/NN
of/IN
state-owned/JJ
industries/NNS
./.
Excluding/VBG
those/DT
receipts/NNS
,/,
the/DT
government/NN
deficit/NN
would/MD
have/VB
totaled/VBN
about/RB
#/#
2.5/CD
billion/CD
in/IN
the/DT
first/JJ
six/CD
months/NNS
,/,
compared/VBN
with/IN
#/#
1.3/CD
billion/CD
a/DT
year/NN
earlier/RBR
,/,
the/DT
Treasury/NNP
said/VBD
./.
French/JJ
crude-steel/NN
production/NN
in/IN
September/NNP
was/VBD
1,616,000/CD
metric/JJ
tons/NNS
,/,
unchanged/JJ
from/IN
a/DT
year/NN
earlier/RBR
,/,
according/VBG
to/TO
the/DT
National/NNP
Steel/NNP
Manufacturers/NNP
'/POS
Association/NN
./.
The/DT
association/NN
said/VBD
the/DT
September/NNP
total/NN
brought/VBN
French/JJ
output/NN
for/IN
the/DT
first/JJ
nine/CD
months/NNS
this/DT
year/NN
to/TO
14,789,000/CD
tons/NNS
,/,
up/RB
4.5/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
./.
Prospect/NNP
Group/NNP
Inc./NNP
,/,
whose/WP$
recent/JJ
hostile/JJ
tender/NN
offer/NN
for/IN
Recognition/NNP
Equipment/NNP
Inc./NNP
failed/VBD
for/IN
lack/NN
of/IN
financing/NN
,/,
apparently/RB
has/VBZ
gained/VBN
a/DT
measure/NN
of/IN
control/NN
over/IN
the/DT
troubled/JJ
company/NN
anyway/RB
./.
As/IN
part/NN
of/IN
what/WP
a/DT
Recognition/NNP
spokeswoman/NN
termed/VBD
an/DT
``/``
amiable/JJ
agreement/NN
,/,
''/''
Prospect/NNP
Group/NNP
will/MD
wind/VB
up/RP
with/IN
control/NN
of/IN
top/JJ
management/NN
posts/NNS
and/CC
an/DT
increased/JJ
stake/NN
in/IN
the/DT
maker/NN
of/IN
data/NNS
management/NN
equipment/NN
./.
In/IN
a/DT
management/NN
restructuring/NN
,/,
Thomas/NNP
L./NNP
Ringer/NNP
resigned/VBD
as/IN
chairman/NN
,/,
chief/JJ
executive/NN
and/CC
a/DT
director/NN
,/,
while/IN
Israel/NNP
Sheinberg/NNP
resigned/VBD
as/IN
a/DT
director/NN
./.
Mr./NNP
Sheinberg/NNP
remains/VBZ
as/IN
executive/JJ
vice/NN
president/NN
./.
Thomas/NNP
M./NNP
Hurley/NNP
and/CC
Robert/NNP
A./NN
Vanourek/NNP
,/,
who/WP
had/VBD
been/VBN
designated/VBN
to/TO
take/VB
over/RP
Recognition/NNP
's/POS
top/JJ
spots/NNS
had/VBD
Prospect/NNP
's/POS
tender/NN
offer/NN
succeeded/VBN
,/,
were/VBD
named/VBN
co-chief/JJ
executives/NNS
and/CC
directors/NNS
./.
Mr./NNP
Hurley/NNP
was/VBD
formerly/RB
a/DT
vice/NN
president/NN
and/CC
general/JJ
manager/NN
of/IN
an/DT
Avery/NNP
International/NNP
division/NN
;/:
Mr./NNP
Vanourek/NNP
was/VBD
a/DT
former/JJ
group/NN
vice/NN
president/NN
of/IN
Pitney/NNP
Bowes/NNP
Inc/NNP
./.
In/IN
addition/NN
,/,
the/DT
agreement/NN
calls/VBZ
for/IN
Gilbert/NNP
H./NNP
Lamphere/NNP
,/,
chairman/NN
of/IN
Prospect/NNP
Group/NNP
's/POS
executive/JJ
committee/NN
,/,
to/TO
be/VB
named/VBN
chairman/NN
of/IN
a/DT
restructured/VBN
board/NN
that/WDT
will/MD
include/VB
four/CD
new/JJ
independent/JJ
directors/NNS
./.
Also/RB
named/VBN
to/TO
the/DT
revised/JJ
board/NN
was/VBD
Thomas/NNP
A./NNP
Loose/NNP
,/,
Recognition/NNP
's/POS
senior/JJ
vice/NN
president/NN
and/CC
general/JJ
counsel/NN
./.
Prospect/NNP
,/,
a/DT
New/NNP
York-based/JJ
leveraged/JJ
buy-out/NN
firm/NN
,/,
also/RB
agreed/VBD
to/TO
invest/VB
$/$
15/CD
million/CD
in/IN
Recognition/NNP
,/,
which/WDT
in/IN
turn/NN
agreed/VBD
to/TO
repurchase/VBN
as/RB
much/JJ
as/IN
$/$
20/CD
million/CD
of/IN
its/PRP$
stock/NN
./.
That/DT
would/MD
increase/VB
Prospect/NNP
's/POS
ownership/NN
of/IN
the/DT
company/NN
's/POS
fully-diluted/JJ
shares/NNS
outstanding/JJ
to/TO
20/CD
%/NN
from/IN
14.1/CD
%/NN
./.
Under/IN
the/DT
agreement/NN
,/,
Prospect/NNP
is/VBZ
permitted/VBN
to/TO
increase/VB
its/PRP$
stake/NN
in/IN
Recognition/NNP
to/TO
30/CD
%/NN
./.
Beyond/IN
that/DT
,/,
Prospect/NNP
said/VBD
it/PRP
would/MD
n't/RB
offer/VB
to/TO
acquire/VB
additional/JJ
shares/NNS
for/IN
less/JJR
than/IN
$/$
11.25/CD
a/DT
share/NN
during/IN
the/DT
next/JJ
year/NN
or/CC
less/JJR
than/IN
$/$
14.06/CD
a/DT
share/NN
during/IN
the/DT
subsequent/JJ
two/CD
years/NNS
./.
Recognition/NNP
also/RB
said/VBD
it/PRP
obtained/VBD
a/DT
commitment/NN
from/IN
Chemical/NNP
Bank/NNP
and/CC
Bank/NNP
of/IN
Boston/NNP
to/TO
convert/VB
an/DT
estimated/JJ
$/$
18/CD
million/CD
in/IN
bank/NN
debt/NN
to/TO
a/DT
new/JJ
,/,
24-month/JJ
secured/JJ
term/NN
loan/NN
to/TO
be/VB
repaid/VBN
through/IN
the/DT
sale/NN
of/IN
certain/JJ
assets/NNS
./.
In/IN
August/NNP
,/,
Recognition/NNP
said/VBD
it/PRP
was/VBD
in/IN
violation/NN
of/IN
certain/JJ
terms/NNS
of/IN
its/PRP$
debt/NN
agreements/NNS
with/IN
bank/NN
lenders/NNS
because/IN
of/IN
a/DT
$/$
3.9/CD
million/CD
loss/NN
for/IN
the/DT
third/JJ
quarter/NN
ended/VBN
July/NNP
31/CD
./.
The/DT
company/NN
attributed/VBD
the/DT
loss/NN
to/TO
declining/VBG
revenue/NN
and/CC
litigation/NN
costs/NNS
relating/VBG
to/TO
criminal/JJ
charges/NNS
against/IN
the/DT
company/NN
and/CC
two/CD
former/JJ
executives/NNS
,/,
William/NNP
G./NNP
Moore/NNP
Jr./NNP
and/CC
Robert/NNP
W./NNP
Reedy/NNP
./.
The/DT
former/JJ
executives/NNS
were/VBD
indicted/VBN
last/JJ
October/NNP
on/IN
charges/NNS
of/IN
fraud/NN
,/,
theft/NN
and/CC
conspiracy/NN
related/VBN
to/TO
efforts/NNS
by/IN
the/DT
company/NN
to/TO
win/VB
$/$
400/CD
million/CD
in/IN
Postal/NNP
Service/NNP
contracts/NNS
./.
Recognition/NNP
Equipment/NNP
said/VBD
it/PRP
expected/VBD
to/TO
put/VB
the/DT
agreement/NN
with/IN
Prospect/NNP
to/TO
a/DT
vote/NN
of/IN
its/PRP$
stockholders/NNS
at/IN
a/DT
special/JJ
meeting/NN
in/IN
January/NNP
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Recognition/NNP
rose/VBD
87.5/CD
cents/NNS
to/TO
$/$
6.625/CD
./.
Prospect/NNP
slipped/VBD
25/CD
cents/NNS
to/TO
$/$
10.50/CD
in/IN
national/JJ
over-the-counter/JJ
trading/NN
./.
General/NNP
Motors/NNP
Corp./NNP
's/POS
Chevrolet/NNP
division/NN
,/,
reacting/VBG
to/TO
slow/JJ
sales/NNS
,/,
said/VBD
it/PRP
will/MD
offer/VB
$/$
800/CD
rebates/NNS
on/IN
its/PRP$
1990/CD
Beretta/NNP
,/,
the/DT
two-door/JJ
version/NN
of/IN
its/PRP$
core/JJ
compact-car/NN
line/NN
./.
Sluggish/JJ
sales/NNS
of/IN
the/DT
Beretta/NNP
,/,
and/CC
its/PRP$
four-door/JJ
sister/JJ
car/NN
,/,
the/DT
Corsica/NNP
,/,
prompted/VBD
GM/NNP
to/TO
idle/VB
the/DT
two/CD
plants/NNS
that/WDT
build/VBP
the/DT
automobiles/NNS
for/IN
a/DT
total/NN
of/IN
three/CD
weeks/NNS
this/DT
month/NN
./.
The/DT
Corsica/NNP
and/CC
Beretta/NNP
make/VBP
up/RP
the/DT
highest-volume/JJ
car/NN
line/NN
at/IN
Chevrolet/NN
,/,
but/CC
sales/NNS
of/IN
the/DT
vehicles/NNS
are/VBP
off/RB
9.6/CD
%/NN
for/IN
the/DT
year/NN
,/,
and/CC
fell/VBD
a/DT
steep/JJ
34/CD
%/NN
during/IN
early/JJ
October/NNP
./.
Chevrolet/NNP
already/RB
is/VBZ
offering/VBG
an/DT
$/$
800/CD
rebate/NN
on/IN
the/DT
1990-model/NN
Corsica/NNP
./.
The/DT
latest/JJS
rebate/NN
is/VBZ
good/JJ
for/IN
all/DT
Beretta/NNP
models/NNS
./.
Chevrolet/NNP
buyers/NNS
can/MD
take/VB
the/DT
rebate/NN
,/,
or/CC
get/VB
discount/NN
financing/NN
at/IN
rates/NNS
ranging/VBG
from/IN
6.9/CD
%/NN
on/IN
24-month/JJ
loans/NNS
to/TO
10.9/CD
%/NN
on/IN
60-month/JJ
loans/NNS
./.
StatesWest/NNP
Airlines/NNP
said/VBD
it/PRP
submitted/VBD
an/DT
offer/NN
to/TO
the/DT
directors/NNS
of/IN
Mesa/NNP
Airlines/NNP
to/TO
acquire/VB
the/DT
Farmington/NNP
,/,
N.M./NNP
,/,
carrier/NN
./.
Except/IN
to/TO
characterize/VB
its/PRP$
offer/NN
as/IN
``/``
fair/JJ
and/CC
generous/JJ
and/CC
in/IN
the/DT
best/JJS
interests/NNS
of/IN
Mesa/NNP
shareholders/NNS
,/,
''/''
StatesWest/NNP
declined/VBD
to/TO
discuss/VB
details/NNS
of/IN
its/PRP$
proposal/NN
./.
It/PRP
also/RB
asked/VBD
Mesa/NNP
to/TO
keep/VB
the/DT
proposal/NN
confidential/JJ
./.
A/DT
Mesa/NNP
official/NN
confirmed/VBD
receipt/NN
of/IN
the/DT
offer/NN
and/CC
said/VBD
directors/NNS
would/MD
meet/VB
to/TO
consider/VB
it/PRP
./.
Last/JJ
week/NN
,/,
Mesa/NNP
rejected/VBD
a/DT
proposal/NN
by/IN
StatesWest/NNP
to/TO
acquire/VB
it/PRP
or/CC
merge/VB
./.
StatesWest/NNP
has/VBZ
a/DT
7.25/CD
%/NN
stake/NN
in/IN
Mesa/NNP
,/,
which/WDT
operates/VBZ
20/CD
twin-engine/JJ
and/CC
two/CD
single-engine/JJ
turboprops/NNS
among/IN
42/CD
cities/NNS
in/IN
New/NNP
Mexico/NNP
,/,
Arizona/NNP
,/,
Wyoming/NNP
,/,
Colorado/NNP
and/CC
Texas/NNP
./.
StatesWest/NNP
operates/VBZ
four/CD
twin-engine/JJ
turboprop/NN
aircraft/NN
,/,
connecting/VBG
10/CD
cities/NNS
in/IN
California/NNP
,/,
Arizona/NNP
and/CC
Nevada/NNP
./.
The/DT
carrier/NN
has/VBZ
n't/RB
yet/RB
turned/VBN
a/DT
profit/NN
./.
The/DT
former/JJ
president/NN
of/IN
FirstSouth/NNP
F.A./NNP
,/,
a/DT
defunct/JJ
Arkansas/NNP
thrift/NN
,/,
pleaded/VBD
guilty/JJ
to/TO
conspiring/VBG
to/TO
inflate/VB
the/DT
institution/NN
's/POS
earnings/NNS
by/IN
concealing/VBG
worthless/JJ
loan/NN
guarantees/NNS
./.
Roderick/NNP
D./NNP
Reed/NNP
III/NNP
,/,
who/WP
was/VBD
also/RB
chief/JJ
operating/NN
officer/NN
of/IN
FirstSouth/NNP
,/,
could/MD
receive/VB
a/DT
maximum/JJ
sentence/NN
of/IN
five/CD
years/NNS
in/IN
federal/JJ
prison/NN
and/CC
a/DT
$/$
250,000/CD
fine/NN
./.
A/DT
sentencing/NN
date/NN
has/VBZ
n't/RB
been/VBN
set/VBN
./.
Mr./NNP
Reed/NNP
admitted/VBD
he/PRP
conspired/VBD
to/TO
conceal/VB
an/DT
agreement/NN
not/RB
to/TO
enforce/VB
loan/NN
guarantees/NNS
executed/VBN
by/IN
Dallas/NNP
real-estate/NN
developers/NNS
A./NN
Starke/NNP
Taylor/NNP
III/NNP
and/CC
George/NNP
S./NNP
Watson/NNP
,/,
both/DT
of/IN
whom/WP
were/VBD
FirstSouth/NNP
stockholders/NNS
./.
Neither/CC
Mr./NNP
Taylor/NNP
nor/CC
Mr./NNP
Watson/NNP
have/VBP
been/VBN
charged/VBN
with/IN
criminal/JJ
wrongdoing/NN
./.
By/IN
concealing/VBG
the/DT
non-enforcement/JJ
agreement/NN
,/,
certain/JJ
transactions/NNS
with/IN
Messrs./NNP
Taylor/NNP
and/CC
Watson/NNP
were/VBD
entered/VBN
on/IN
FirstSouth/NNP
's/POS
books/NNS
as/IN
loans/NNS
,/,
allowing/VBG
the/DT
thrift/NN
to/TO
report/VB
fees/NNS
and/CC
interest/NN
as/IN
current/JJ
income/NN
,/,
according/VBG
to/TO
the/DT
U.S./NNP
attorney/NN
's/POS
office/NN
in/IN
Little/NNP
Rock/NNP
,/,
Ark/NNP
./.
The/DT
conspiracy/NN
was/VBD
part/NN
of/IN
an/DT
effort/NN
by/IN
Mr./NNP
Reed/NNP
to/TO
hide/VB
FirstSouth/NNP
's/POS
shaky/JJ
financial/JJ
condition/NN
from/IN
federal/JJ
regulators/NNS
,/,
according/VBG
to/TO
federal/JJ
prosecutors/NNS
and/CC
regulators/NNS
./.
The/DT
$/$
1.68/CD
billion/CD
thrift/NN
was/VBD
declared/VBN
insolvent/JJ
and/CC
closed/VBN|VBD
in/IN
December/NNP
1986/CD
./.
FirstSouth/NNP
's/POS
former/JJ
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
Howard/NNP
Weichern/NNP
,/,
is/VBZ
also/RB
charged/VBN
with/IN
conspiring/VBG
to/TO
conceal/VB
the/DT
agreements/NNS
with/IN
Messrs./NNPS
Watson/NNP
and/CC
Taylor/NNP
./.
Mr./NNP
Weichern/NNP
is/VBZ
scheduled/VBN
for/IN
trial/NN
Jan./NNP
3/CD
before/IN
federal/JJ
Judge/NNP
Stephen/NNP
Reasoner/NNP
of/IN
Little/NNP
Rock/NNP
./.
I/PRP
approached/VBD
``/``
Mastergate/NNP
,/,
''/''
Larry/NNP
Gelbart/NNP
's/POS
new/JJ
comedy/NN
at/IN
the/DT
Criterion/NNP
Center/NNP
,/,
with/IN
considerable/JJ
trepidation/NN
./.
Nothing/NNP
,/,
I/PRP
assumed/VBD
,/,
would/MD
be/VB
more/RBR
hopelessly/RB
dated/JJ
than/IN
a/DT
political/JJ
satire/NN
on/IN
the/DT
Iran-Contra/NNP
affair/NN
./.
I/PRP
had/VBD
underestimated/VBN
,/,
however/RB
,/,
both/CC
Mr./NNP
Gelbart/NNP
's/POS
wit/NN
and/CC
the/DT
persistence/NN
of/IN
scandal/NN
in/IN
Washington/NNP
./.
Though/IN
the/DT
play/NN
clearly/RB
is/VBZ
framed/VBN
around/IN
the/DT
events/NNS
of/IN
Iran-Contra/NNP
,/,
it/PRP
takes/VBZ
in/RP
the/DT
wide/JJ
sweep/NN
of/IN
scandals/NNS
over/IN
the/DT
past/JJ
30/CD
years/NNS
./.
In/IN
fact/NN
,/,
at/IN
one/CD
point/NN
Merry/NNP
Chase/NNP
Melinda/NNP
Mullins/NNP
a/DT
cool/JJ
,/,
carefully/RB
coiffed/JJ
television/NN
announcer/NN
,/,
recites/VBZ
a/DT
list/NN
of/IN
a/DT
dozen/NN
or/CC
more/JJR
scandals/NNS
of/IN
recent/JJ
years/NNS
,/,
concluding/VBG
with/IN
those/DT
affecting/VBG
the/DT
Department/NNP
of/IN
Housing/NNP
and/CC
Urban/NNP
Development/NNP
and/CC
the/DT
savings/NNS
and/CC
loan/NN
industry/NN
./.
Onstage/RB
,/,
a/DT
congressional/JJ
hearing/NN
is/VBZ
in/IN
progress/NN
,/,
complete/JJ
with/IN
elegant/JJ
crystal/NN
chandelier/NN
overhead/RB
and/CC
a/DT
lifesize/JJ
reproduction/NN
of/IN
the/DT
signing/NN
of/IN
the/DT
Constitution/NNP
in/IN
the/DT
background/NN
./.
The/DT
witness/NN
table/NN
is/VBZ
center/RB
stage/NN
and/CC
below/IN
it/PRP
,/,
the/DT
paraphernalia/NNS
for/IN
the/DT
ever-present/JJ
media/NNS
,/,
in/IN
this/DT
case/NN
TNN/NNP
,/,
the/DT
Total/NNP
News/NNP
Network/NNP
./.
Not/RB
only/RB
are/VBP
there/RB
camera/NN
operators/NNS
on/IN
all/DT
sides/NNS
,/,
but/CC
the/DT
proceedings/NNS
are/VBP
shown/VBN
on/IN
monitors/NNS
throughout/IN
the/DT
theater/NN
./.
The/DT
metaphor/NN
of/IN
theater/NN
is/VBZ
not/RB
entirely/RB
coincidental/JJ
./.
Mr./NNP
Gelbart/NNP
clearly/RB
feels/VBZ
that/IN
all/PDT
the/DT
participants/NNS
in/IN
a/DT
congressional/JJ
hearing/NN
--/:
the/DT
witnesses/NNS
,/,
the/DT
lawyers/NNS
,/,
the/DT
interrogators/NNS
and/CC
the/DT
news/NN
media/NNS
--/:
are/VBP
performers/NNS
./.
As/IN
the/DT
story/NN
of/IN
``/``
Mastergate/NNP
''/''
unfolds/VBZ
,/,
we/PRP
learn/VBP
that/IN
the/DT
Internal/NNP
Revenue/NNP
Service/NNP
confiscated/VBD
one/CD
of/IN
the/DT
properties/NNS
of/IN
a/DT
foreign/JJ
financier/NN
who/WP
owes/VBZ
the/DT
government/NN
millions/NNS
in/IN
taxes/NNS
./.
The/DT
man/NN
,/,
it/PRP
seems/VBZ
,/,
has/VBZ
a/DT
Lichtenstein/NNP
corporation/NN
,/,
licensed/VBN
in/IN
Libya/NNP
and/CC
sheltered/VBN
in/IN
the/DT
Bahamas/NNPS
./.
He/PRP
himself/PRP
lives/VBZ
in/IN
a/DT
``/``
consecutive/JJ
series/NN
of/IN
unnumbered/JJ
houses/NNS
in/IN
a/DT
town/NN
in/IN
Switzerland/NNP
./.
''/''
The/DT
property/NN
seized/VBN
by/IN
the/DT
IRS/NNP
is/VBZ
a/DT
Hollywood/NNP
film/NN
studio/NN
,/,
Master/NNP
Pictures/NNP
Incorporated/NNP
MPI/NNP
Supposedly/NNP
the/DT
IRS/NNP
will/MD
sell/VB
off/RP
the/DT
assets/NNS
of/IN
MPI/NNP
,/,
but/CC
before/IN
it/PRP
can/MD
,/,
a/DT
lowly/JJ
IRS/NNP
agent/NN
is/VBZ
called/VBN
into/IN
the/DT
hospital/NN
room/NN
of/IN
Wylie/NNP
Slaughter/NNP
,/,
the/DT
dying/VBG
head/NN
of/IN
the/DT
Central/NNP
Intelligence/NNP
Agency/NNP
./.
The/DT
lowly/JJ
agent/NN
,/,
Abel/NNP
Lamb/NNP
,/,
who/WP
as/IN
you/PRP
might/MD
guess/VB
,/,
is/VBZ
being/VBG
led/VBN
to/TO
the/DT
slaughter/NN
,/,
is/VBZ
ordered/VBN
to/TO
take/VB
over/RP
the/DT
studio/NN
./.
Soon/RB
the/DT
studio/NN
is/VBZ
producing/VBG
a/DT
$/$
40/CD
million/CD
picture/NN
called/VBN
``/``
Tet/NNP
,/,
the/DT
Motion/NNP
Picture/NNP
,/,
''/''
to/TO
distinguish/VB
it/PRP
from/IN
``/``
Tet/NNP
,/,
the/DT
Offensive/NNP
,/,
''/''
as/RB
well/RB
as/IN
``/``
Tet/NNP
,/,
the/DT
Book/NNP
''/''
and/CC
``/``
Tet/NNP
,/,
the/DT
Album/NNP
./.
''/''
The/DT
picture/NN
,/,
to/TO
be/VB
made/VBN
in/IN
the/DT
Central/JJ
American/JJ
country/NN
of/IN
San/NNP
Elvador/NNP
,/,
is/VBZ
a/DT
cover/NN
for/IN
sending/VBG
$/$
800/CD
million/CD
of/IN
arms/NNS
to/TO
Los/NNP
Otros/NNP
,/,
the/DT
rebel/JJ
group/NN
attempting/VBG
to/TO
regain/VB
neighboring/JJ
Ambigua/NNP
,/,
which/WDT
has/VBZ
been/VBN
taken/VBN
over/RP
by/IN
the/DT
leftist/JJ
dictator/NN
Dr./NNP
Overtega/NNP
,/,
a/DT
former/JJ
podiatrist/NN
,/,
who/WP
leads/VBZ
a/DT
revolutionary/JJ
band/NN
of/IN
foot/NN
soldiers/NNS
./.
The/DT
man/NN
handling/VBG
all/PDT
this/DT
for/IN
the/DT
now-deceased/JJ
Slaughter/NNP
is/VBZ
Major/NNP
Manley/NNP
Battle/NNP
,/,
Mr./NNP
Gelbart/NNP
's/POS
stand/NN
in/RP
for/IN
Col./NNP
Oliver/NNP
North/NNP
./.
Director/NNP
Michael/NNP
Engler/NNP
has/VBZ
assembled/VBN
a/DT
top-flight/JJ
cast/NN
to/TO
carry/VB
out/RP
the/DT
impersonations/NNS
of/IN
well-known/JJ
political/JJ
figures/NNS
and/CC
to/TO
play/VB
the/DT
stock/JJ
characters/NNS
who/WP
invariably/RB
show/VB
up/RP
at/IN
congressional/JJ
hearings/NNS
./.
Daniel/NNP
von/NNP
Bargen/NNP
is/VBZ
ramrod-stiff/JJ
but/CC
totally/RB
assured/JJ
as/IN
Major/NNP
Battle/NNP
,/,
mixing/VBG
just/RB
the/DT
right/JJ
brand/NN
of/IN
self-righteousness/NN
and/CC
patriotism/NN
;/:
Jeff/NNP
Weiss/NNP
is/VBZ
fire/NN
,/,
brimstone/NN
and/CC
teary-eyed/JJ
emotionalism/NN
as/IN
the/DT
far-right/JJ
senator/NN
who/WP
serves/VBZ
as/IN
a/DT
friendly/JJ
interrogator/NN
of/IN
Major/NNP
Battle/NNP
;/:
Zach/NNP
Grenier/NNP
is/VBZ
maddeningly/RB
officious/JJ
playing/VBG
a/DT
succession/NN
of/IN
lawyers/NNS
;/:
Joseph/NNP
Daly/NNP
has/VBZ
the/DT
perfect/JJ
``/``
aw/UH
,/,
shucks/UH
''/''
demeanor/NN
of/IN
George/NNP
Bush/NNP
in/IN
his/PRP$
portrayal/NN
of/IN
the/DT
vice/NN
president/NN
;/:
and/CC
Ann/NNP
McDonough/NNP
is/VBZ
first-rate/JJ
as/IN
a/DT
succession/NN
of/IN
witnesses/NNS
'/POS
wives/NNS
./.
With/IN
one/CD
she/PRP
is/VBZ
pregnant/JJ
,/,
with/IN
Major/NNP
Battle/NNP
she/PRP
is/VBZ
knitting/VBG
an/DT
American/JJ
flag/NN
,/,
and/CC
as/IN
the/DT
vice/NN
president/NN
's/POS
wife/NN
she/PRP
rushes/VBZ
in/RB
with/IN
white/JJ
hair/NN
,/,
wearing/VBG
a/DT
tailored/JJ
suit/NN
and/CC
pearls/NNS
,/,
imitating/VBG
Barbara/NNP
Bush/NNP
's/POS
gestures/NNS
down/IN
to/TO
the/DT
last/JJ
detail/NN
./.
Though/IN
it/PRP
's/VBZ
clear/JJ
that/IN
Mr./NNP
Gelbart/NNP
's/POS
sympathies/NNS
do/VBP
not/RB
lie/VB
with/IN
the/DT
far/RB
right/JJ
,/,
it/PRP
's/VBZ
also/RB
true/JJ
that/IN
he/PRP
is/VBZ
evenhanded/JJ
in/IN
dispensing/VBG
his/PRP$
satirical/JJ
jabs/NNS
,/,
taking/VBG
sharp/JJ
aim/NN
at/IN
senators/NNS
and/CC
congressmen/NNS
of/IN
all/DT
stripes/NNS
and/CC
particularly/RB
at/IN
the/DT
media/NNS
./.
Mr./NNP
Gelbart/NNP
also/RB
has/VBZ
fun/NN
with/IN
language/NN
./.
``/``
Mastergate/NNP
''/''
is/VBZ
subtitled/VBN
``/``
a/DT
play/NN
on/IN
words/NNS
,/,
''/''
and/CC
Mr./NNP
Gelbart/NNP
plays/VBZ
that/DT
game/NN
as/RB
well/RB
as/IN
anyone/NN
./.
He/PRP
describes/VBZ
a/DT
Mastergate/NNP
flunky/NN
as/IN
one/NN
who/WP
experienced/VBD
a/DT
``/``
meteoric/JJ
disappearance/NN
''/''
and/CC
found/VBD
himself/PRP
``/``
handling/VBG
blanket/NN|JJ
appeals/NNS
at/IN
the/DT
Bureau/NNP
of/IN
Indian/NNP
Affairs/NNP
./.
''/''
This/DT
interest/NN
in/IN
words/NNS
goes/VBZ
beyond/IN
puns/NNS
and/CC
playfulness/NN
,/,
however/RB
./.
Mr./NNP
Gelbart/NNP
deplores/VBZ
the/DT
obfuscation/NN
,/,
the/DT
circumlocution/NN
and/CC
the/DT
debasement/NN
of/IN
language/NN
he/PRP
sees/VBZ
on/IN
all/DT
sides/NNS
./.
As/IN
the/DT
hearings/NNS
begin/VBP
,/,
the/DT
self-important/JJ
Sen./NNP
Bowman/NNP
Jerome/NNP
Kilty/NNP
me/PRP
emphaticize/VB
one/CD
thing/NN
at/IN
the/DT
outset/NN
:/:
We/PRP
are/VBP
not/RB
looking/VBG
for/IN
hides/NNS
to/TO
skin/NN
nor/CC
goats/NNS
to/TO
scape/VB
./.
''/''
Major/NNP
Battle/NNP
himself/PRP
speaks/VBZ
in/IN
pure/JJ
Pentagonese/NNP
:/:
``/``
Without/IN
further/JJ
monetary-stroke-military/JJ
aid/NN
,/,
scores/NNS
of/IN
Ambiguan/JJ
freedom/NN
lovers/NNS
,/,
who/WP
had/VBD
gone/VBN
way/RB
out/IN
on/IN
their/PRP$
life/NN
and/CC
limbs/NNS
for/IN
us/PRP
,/,
were/VBD
literally/RB
cut/VBN
off/RP
at/IN
the/DT
knees/NNS
without/IN
a/DT
paddle/NN
./.
''/''
At/IN
another/DT
point/NN
he/PRP
intones/VBZ
:/:
``/``
Publicity/NN
is/VBZ
a/DT
small/JJ
price/NN
to/TO
pay/VB
for/IN
secrecy/NN
./.
''/''
The/DT
evening/NN
is/VBZ
short/JJ
--/:
95/CD
minutes/NNS
without/IN
an/DT
intermission/NN
--/:
but/CC
even/RB
so/RB
,/,
as/IN
the/DT
play/NN
progresses/VBZ
the/DT
thrust/NN
of/IN
Mr./NNP
Gelbart/NNP
's/POS
satire/NN
loses/VBZ
its/PRP$
sharpness/NN
as/IN
his/PRP$
targets/NNS
pop/VBP
up/RP
ever/RB
more/RBR
predictably/RB
./.
Most/RBS
of/IN
the/DT
evening/NN
,/,
though/RB
,/,
is/VBZ
filled/VBN
with/IN
rare/JJ
and/CC
welcome/JJ
wit/NN
./.
In/IN
``/``
Mastergate/NNP
,/,
''/''
Mr./NNP
Gelbart/NNP
has/VBZ
provided/VBN
us/PRP
not/RB
just/RB
one/CD
but/CC
two/CD
commodities/NNS
that/WDT
have/VBP
all/RB
but/RB
disappeared/VBD
from/IN
the/DT
Broadway/NNP
theater/NN
:/:
sharp/JJ
political/JJ
satire/NN
and/CC
an/DT
even/RB
sharper/JJR
appreciation/NN
of/IN
the/DT
value/NN
of/IN
language/NN
./.
The/DT
Federal/NNP
National/NNP
Mortgage/NNP
Association/NNP
set/VBD
up/RP
a/DT
three-member/JJ
office/NN
of/IN
the/DT
chairman/NN
and/CC
elected/VBD
James/NNP
A./NN
Johnson/NNP
as/IN
vice/NN
chairman/NN
,/,
effective/JJ
Jan./NNP
1/CD
./.
Mr./NNP
Johnson/NNP
has/VBZ
been/VBN
a/DT
managing/NN
director/NN
at/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
since/IN
1985/CD
,/,
and/CC
before/IN
that/DT
was/VBD
president/NN
of/IN
Public/NNP
Strategies/NNP
,/,
a/DT
Washington/NNP
consulting/NN
firm/NN
./.
He/PRP
is/VBZ
well-known/JJ
in/IN
Democratic/JJ
circles/NNS
,/,
having/VBG
been/VBN
executive/JJ
assistant/NN
to/TO
Vice/NNP
President/NNP
Walter/NNP
Mondale/NNP
and/CC
chairman/NN
of/IN
Mr./NNP
Mondale/NNP
's/POS
1984/CD
presidential/JJ
campaign/NN
./.
At/IN
Fannie/NNP
Mae/NNP
,/,
he/PRP
will/MD
take/VB
responsibility/NN
for/IN
the/DT
corporation/NN
's/POS
financial/JJ
and/CC
legal/JJ
areas/NNS
and/CC
will/MD
work/VB
with/IN
David/NNP
Maxwell/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
and/CC
Roger/NNP
Birk/NNP
,/,
president/NN
and/CC
chief/NN
operating/NN
officer/NN
,/,
on/IN
strategic/JJ
planning/NN
./.
Mr./NNP
Johnson/NNP
,/,
45/CD
years/NNS
old/JJ
,/,
has/VBZ
been/VBN
a/DT
consultant/NN
on/IN
strategy/NN
to/TO
Fannie/NNP
Mae/NNP
for/IN
the/DT
past/JJ
3/CD
1\/2/CD
years/NNS
./.
In/IN
an/DT
interview/NN
,/,
he/PRP
said/VBD
Fannie/NNP
Mae/NNP
faces/VBZ
a/DT
number/NN
of/IN
challenges/NNS
with/IN
the/DT
restructuring/NN
of/IN
the/DT
thrift/NN
industry/NN
and/CC
the/DT
push/NN
to/TO
broaden/VB
its/PRP$
activities/NNS
overseas/RB
./.
``/``
There/EX
's/VBZ
no/DT
shortage/NN
of/IN
major/JJ
things/NNS
to/TO
do/VB
,/,
''/''
he/PRP
said/VBD
./.
Fannie/NNP
Mae/NNP
also/RB
said/VBD
James/NNP
A./NNP
Aliber/NNP
,/,
chairman/NN
of/IN
First/NNP
Federal/NNP
of/IN
Michigan/NNP
and/CC
a/DT
director/NN
since/IN
1985/CD
,/,
moved/VBD
up/RP
the/DT
date/NN
of/IN
his/PRP$
retirement/NN
from/IN
the/DT
board/NN
to/TO
accommodate/VB
Mr./NNP
Johnson/NNP
's/POS
election/NN
as/IN
a/DT
director/NN
./.
The/DT
board/NN
has/VBZ
13/CD
members/NNS
elected/VBN
by/IN
holders/NNS
and/CC
five/CD
presidential/JJ
appointees/NNS
./.
Fannie/NNP
Mae/NNP
,/,
a/DT
federally/RB
chartered/JJ
,/,
shareholder-owned/JJ
corporation/NN
,/,
operates/VBZ
a/DT
secondary/JJ
market/NN
for/IN
mortgage/NN
loans/NNS
,/,
buying/VBG
loans/NNS
from/IN
lenders/NNS
,/,
packaging/VBG
some/DT
into/IN
securities/NNS
for/IN
sale/NN
to/TO
investors/NNS
and/CC
keeping/VBG
the/DT
rest/NN
in/IN
its/PRP$
portfolio/NN
./.
``/``
The/DT
New/JJ
Crowd/NN
''/''
by/IN
Judith/NNP
Ramsey/NNP
Ehrlich/NNP
and/CC
Barry/NNP
J./NNP
Rehfeld/NNP
Little/NNP
,/,
Brown/NNP
,/,
444/CD
pages/NNS
,/,
$/$
19.95/CD
the/DT
displacing/NN
of/IN
the/DT
old/JJ
``/``
our/PRP$
crowd/NN
''/''
Jewish/JJ
Wall/NNP
Street/NNP
banking/NN
grandees/NNS
by/IN
such/JJ
new/JJ
business/NN
barons/NNS
as/IN
Saul/NNP
Steinberg/NNP
,/,
Carl/NNP
Icahn/NNP
,/,
Sanford/NNP
Weill/NNP
and/CC
Bruce/NNP
Wasserstein/NNP
./.
Its/PRP$
many/JJ
lively/JJ
stories/NNS
include/VBP
the/DT
Gutfreund-Postel/NNP
holiday/NN
cheer/NN
imbroglio/NN
./.
These/DT
two/CD
New/NNP
Crowd/NNP
families/NNS
lived/VBD
in/IN
the/DT
same/JJ
apartment/NN
building/NN
,/,
with/IN
the/DT
Postel/NNP
penthouse/NN
perched/VBN
on/IN
top/NN
of/IN
the/DT
Gutfreund/NNP
duplex/NN
./.
The/DT
penthouse/NN
elevator/NN
started/VBD
up/RB
from/IN
the/DT
Gutfreund/NNP
landing/NN
,/,
and/CC
Susan/NNP
Gutfreund/NNP
used/VBD
to/TO
turn/VB
off/RP
its/PRP$
light/NN
,/,
to/TO
give/VB
the/DT
impression/NN
that/IN
there/EX
was/VBD
no/DT
higher/JJR
floor/NN
./.
Eventually/RB
,/,
Mr./NNP
Postel/NNP
broke/VBD
his/PRP$
toe/NN
in/IN
the/DT
dark/NN
./.
Then/RB
the/DT
Gutfreunds/NNPS
determined/VBD
to/TO
put/VB
up/RP
a/DT
22-foot/JJ
Christmas/NNP
tree/NN
,/,
weighing/VBG
a/DT
quarter/NN
of/IN
a/DT
ton/NN
,/,
to/TO
amaze/VB
their/PRP$
holiday/NN
guests/NNS
./.
For/IN
this/DT
,/,
a/DT
crane/NN
needed/VBD
to/TO
be/VB
mounted/VBN
on/IN
the/DT
Postels/NNPS
'/POS
terrace/NN
./.
The/DT
Postels/NNPS
did/VBD
not/RB
give/VB
permission/NN
./.
But/CC
the/DT
Gutfreund/NNP
workers/NNS
went/VBD
ahead/RB
anyway/RB
,/,
only/RB
to/TO
be/VB
captured/VBN
``/``
in/FW
flagrante/FW
''/''
by/IN
Joan/NNP
Postel/NNP
,/,
who/WP
called/VBD
the/DT
police/NN
./.
Before/IN
the/DT
Gutfreunds/NNPS
finally/RB
left/VBD
this/DT
unfriendly/JJ
environment/NN
for/IN
a/DT
prodigious/JJ
duplex/NN
on/IN
Fifth/NNP
Avenue/NNP
and/CC
an/DT
18th-century/JJ
mansion/NN
with/IN
a/DT
specially/RB
excavated/VBN
$/$
1/CD
million/CD
garage/NN
in/IN
Paris/NNP
,/,
the/DT
Postels/NNPS
had/VBD
obtained/VBN
an/DT
injunction/NN
to/TO
prevent/VB
any/DT
future/NN
hoisting/NN
of/IN
trees/NNS
,/,
and/CC
in/IN
a/DT
neighborly/JJ
spirit/NN
hit/VBD
both/DT
the/DT
Gutfreunds/NNPS
and/CC
the/DT
building/NN
with/IN
a/DT
$/$
35/CD
million/CD
lawsuit/NN
./.
Nothing/NN
less/RBR
,/,
it/PRP
seemed/VBD
,/,
could/MD
console/VB
them/PRP
for/IN
their/PRP$
traumas/NNS
./.
Where/WRB
had/VBD
all/PDT
the/DT
money/NN
come/VBN
from/IN
?/.
The/DT
young/JJ
John/NNP
Gutfreund/NNP
had/VBD
been/VBN
discovered/VBN
by/IN
Billy/NNP
Salomon/NNP
of/IN
Salomon/NNP
Bros./NNP
when/WRB
he/PRP
was/VBD
still/RB
a/DT
bearded/JJ
liberal/NN
,/,
and/CC
put/VBN
to/TO
work/VB
as/IN
a/DT
trader/NN
,/,
and/CC
then/RB
as/IN
a/DT
rough-and-tumble/JJ
syndicator/NN
./.
``/``
`/``
Get/VB
off/IN
your/PRP$
.../:
,/,
'/''
he/PRP
would/MD
bellow/VB
,/,
''/''
say/VBP
the/DT
authors/NNS
./.
Rising/VBG
in/IN
the/DT
firm/NN
,/,
he/PRP
became/VBD
powerful/JJ
and/CC
bland/JJ
,/,
though/IN
his/PRP$
new/JJ
wife/NN
,/,
Susan/NNP
,/,
made/VBD
him/PRP
shine/VB
in/IN
the/DT
gossip/NN
columns/NNS
with/IN
her/PRP$
profligate/JJ
spending/NN
habits/NNS
and/CC
flamboyant/JJ
frocks/NNS
./.
After/IN
he/PRP
had/VBD
been/VBN
head/NN
of/IN
the/DT
company/NN
for/IN
3/CD
1\/2/CD
years/NNS
,/,
he/PRP
and/CC
his/PRP$
partners/NNS
sold/VBD
it/PRP
to/TO
Phibro/NNP
,/,
a/DT
powerful/JJ
commodity/NN
trading/NN
outfit/NN
,/,
for/IN
$/$
550/CD
million/CD
in/IN
Phibro/NNP
stock/NN
./.
Limited/JJ
partner/NN
Billy/NNP
Salomon/NNP
,/,
whose/WP$
family/NN
name/NN
had/VBD
been/VBN
on/IN
the/DT
firm/NN
's/POS
door/NN
for/IN
70/CD
years/NNS
and/CC
who/WP
had/VBD
hoped/VBN
it/PRP
would/MD
be/VB
there/RB
forever/RB
,/,
was/VBD
not/RB
consulted/VBN
./.
Mr./NNP
Gutfreund/NNP
collected/VBD
$/$
32/CD
million/CD
,/,
while/IN
Billy/NNP
Salomon/NNP
got/VBD
$/$
10/CD
million/CD
,/,
much/RB
less/JJR
than/IN
if/IN
he/PRP
had/VBD
conducted/VBN
the/DT
sale/NN
./.
``/``
I/PRP
felt/VBD
betrayed/VBN
,/,
''/''
he/PRP
later/RB
said/VBD
./.
Worse/RBR|JJR
,/,
Salomon/NNP
's/POS
timing/NN
had/VBD
been/VBN
off/RB
./.
Its/PRP$
profits/NNS
,/,
unlike/IN
Phibro/NNP
's/POS
,/,
soared/VBD
over/IN
the/DT
next/JJ
two/CD
years/NNS
,/,
and/CC
had/VBD
it/PRP
held/VBN
out/RP
,/,
Salomon/NNP
could/MD
have/VB
gotten/VBN
an/DT
even/RB
bigger/JJR
bundle/NN
./.
The/DT
book/NN
also/RB
recounts/VBZ
the/DT
not/RB
dissimilar/JJ
maneuvers/NNS
surrounding/VBG
the/DT
changing/NN
of/IN
the/DT
guard/NN
at/IN
Lehman/NNP
Bros./NNP
and/CC
other/JJ
grand/JJ
old/JJ
firms/NNS
./.
Often/RB
the/DT
genteel/JJ
,/,
conservative/JJ
,/,
long-term-oriented/JJ
investment/NN
bankers/NNS
were/VBD
displaced/VBN
by/IN
crude/JJ
traders/NNS
:/:
``/``
When/WRB
angered/VBN
,/,
he/PRP
cursed/VBD
so/RB
forcefully/RB
that/IN
his/PRP$
face/NN
reddened/VB
and/CC
his/PRP$
pale-blue/JJ
eyes/NNS
narrowed/VBD
into/IN
tiny/JJ
slits/NNS
,/,
''/''
the/DT
authors/NNS
say/VBP
of/IN
Lehman/NNP
's/POS
Lewis/NNP
Glucksman/NNP
./.
The/DT
earlier/JJR
generation/NN
of/IN
``/``
our/PRP$
crowd/NN
''/''
bankers/NNS
--/:
Belmonts/NNPS
,/,
Warburgs/NNPS
,/,
Lehmans/NNPS
,/,
Baches/NNPS
and/CC
Schiffs/NNPS
--/:
had/VBD
stressed/VBN
above/IN
all/DT
probity/NN
,/,
tradition/NN
,/,
continuity/NN
and/CC
reputation/NN
./.
They/PRP
were/VBD
old-fashioned/JJ
elegant/JJ
gentlemen/NNS
,/,
who/WP
happened/VBD
to/TO
be/VB
of/IN
German/JJ
Jewish/JJ
extraction/NN
./.
But/CC
in/IN
the/DT
harsh/JJ
world/NN
of/IN
today/NN
's/POS
Wall/NNP
Street/NNP
they/PRP
have/VBP
lost/VBN
out/RP
to/TO
more/RBR
aggressive/JJ
and/CC
sometimes/RB
less/RBR
scrupulous/JJ
successors/NNS
./.
The/DT
cuckoo/NN
prefers/VBZ
the/DT
nests/NNS
of/IN
other/JJ
birds/NNS
and/CC
heaves/VBD
out/RP
their/PRP$
eggs/NNS
./.
But/CC
the/DT
old/JJ
guard/NN
hired/VBD
the/DT
New/NNP
Crowd/NNP
people/NNS
:/:
It/PRP
brought/VBD
in/IN
its/PRP$
own/JJ
cuckoos/NNS
./.
So/RB
,/,
as/IN
the/DT
Old/NNP
Crowd/NNP
toppled/VBD
from/IN
the/DT
branch/NN
,/,
it/PRP
should/MD
n't/RB
have/VB
been/VBN
too/RB
surprised/JJ
./.
The/DT
old/JJ
guard/NN
had/VBD
every/DT
right/NN
,/,
however/RB
,/,
to/TO
disdain/VB
the/DT
newcomers/NNS
'/POS
new/JJ
ways/NNS
of/IN
making/VBG
money/NN
,/,
such/JJ
as/IN
greenmail/NN
./.
A/DT
Fortune/NNP
article/NN
on/IN
Saul/NNP
Steinberg/NNP
was/VBD
entitled/VBN
,/,
``/``
Fear/NN
and/CC
Loathing/NN
in/IN
the/DT
Corporate/JJ
Boardrooms/NNS
./.
''/''
)/)
Their/PRP$
other/JJ
staple/NN
has/VBZ
been/VBN
corporate/JJ
takeovers/NNS
,/,
often/RB
hostile/JJ
and/CC
financed/VBN
by/IN
junk/NN
bonds/NNS
./.
Hostile/JJ
takeovers/NNS
are/VBP
quite/PDT
a/DT
new/JJ
phenomenon/NN
./.
Sometimes/RB
they/PRP
are/VBP
constructive/JJ
,/,
but/CC
often/RB
not/RB
./.
First/RB
,/,
by/IN
making/VBG
management/NN
focus/NN
on/IN
short-term/JJ
results/NNS
,/,
they/PRP
inhibit/VBP
building/VBG
for/IN
the/DT
future/NN
--/:
just/RB
the/DT
opposite/JJ
of/IN
Japan/NNP
./.
Second/RB
,/,
a/DT
long-term/JJ
shareholder/NN
of/IN
a/DT
good/JJ
company/NN
need/MD
n't/RB
worry/VB
too/RB
much/RB
when/WRB
the/DT
stock/NN
price/NN
drops/VBZ
temporarily/RB
:/:
It/PRP
will/MD
bounce/VB
back/RP
./.
But/CC
if/IN
a/DT
raider/NN
takes/VBZ
over/RP
when/WRB
the/DT
stock/NN
is/VBZ
weak/JJ
,/,
the/DT
shareholder/NN
never/RB
gets/VBZ
his/PRP$
recovery/NN
./.
The/DT
raiders/NNS
,/,
meanwhile/RB
,/,
have/VBP
evolved/VBN
their/PRP$
own/JJ
pattern/NN
for/IN
spending/VBG
their/PRP$
new/JJ
millions/NNS
./.
As/IN
described/VBN
in/IN
``/``
The/DT
New/JJ
Crowd/NN
,/,
''/''
they/PRP
take/VBP
on/RP
ambitious/JJ
new/JJ
wives/NNS
,/,
move/VBP
to/TO
Greenwich/NNP
,/,
Conn./NNP
,/,
or/CC
Bedford/NNP
,/,
N.Y./NNP
,/,
buy/VBP
OK/JJ
pictures/NNS
,/,
and/CC
let/VBP
their/PRP$
wives/NNS
share/VB
the/DT
wealth/NN
with/IN
decorators/NNS
./.
Having/VBG
donated/VBN
heavily/RB
to/TO
museums/NNS
,/,
they/PRP
demand/VBP
a/DT
place/NN
on/IN
their/PRP$
boards/NNS
./.
The/DT
book/NN
is/VBZ
patronizing/JJ
about/IN
this/DT
nouveau/JJ
riche/JJ
struggle/NN
for/IN
respectability/NN
,/,
which/WDT
has/VBZ
its/PRP$
tawdry/JJ
aspects/NNS
./.
However/RB
,/,
on/IN
balance/NN
,/,
the/DT
charity/NN
game/NN
helps/VBZ
America/NNP
./.
If/IN
those/DT
who/WP
have/VBP
the/DT
money/NN
do/VBP
n't/RB
get/VB
involved/JJ
with/IN
the/DT
museums/NNS
and/CC
the/DT
charities/NNS
,/,
then/RB
City/NNP
Hall/NNP
will/MD
do/VB
it/PRP
,/,
badly/RB
./.
It/PRP
has/VBZ
been/VBN
rightly/RB
observed/VBN
that/IN
the/DT
main/JJ
thing/NN
wrong/JJ
with/IN
tainted/JJ
money/NN
is/VBZ
,/,
t'/PRP
ai/VBZ
nt/RB

enough/NN
of/IN
it/PRP
./.
A/DT
handful/NN
of/IN
the/DT
New/NNP
Crowd/NNP
operators/NNS
have/VBP
crossed/VBN
the/DT
line/NN
from/IN
the/DT
immoral/JJ
to/TO
the/DT
illegal/JJ
,/,
and/CC
have/VBP
ended/VBN
up/RP
in/IN
the/DT
slammer/NN
or/CC
paying/VBG
huge/JJ
fines/NNS
:/:
Ivan/NNP
Boesky/NNP
,/,
Dennis/NNP
Levine/NNP
,/,
Martin/NNP
Siegel/NNP
,/,
Victor/NNP
and/CC
Steven/NNP
Posner/NNP
,/,
and/CC
now/RB
Michael/NNP
Milken/NNP
and/CC
perhaps/RB
Leona/NNP
Helmsley/NNP
./.
The/DT
glitzy/JJ
office/NN
that/WDT
Ivan/NNP
Boesky/NNP
vacated/VBD
for/IN
a/DT
prison/NN
cell/NN
had/VBD
previously/RB
contained/VBN
commodity/NN
operators/NNS
Marc/NNP
Rich/NNP
and/CC
``/``
Pinky/NNP
''/''
Green/NNP
,/,
today/NN
fugitives/NNS
from/IN
a/DT
potential/JJ
century/NN
apiece/RB
of/IN
jail/NN
sentences/NNS
./.
The/DT
Old/NNP
Crowd/NNP
is/VBZ
deeply/RB
concerned/JJ
by/IN
the/DT
backlash/NN
from/IN
all/PDT
this/DT
./.
However/RB
,/,
the/DT
phenomenon/NN
is/VBZ
not/RB
specifically/RB
Jewish/JJ
./.
It/PRP
has/VBZ
always/RB
been/VBN
true/JJ
that/IN
those/DT
outside/IN
the/DT
club/NN
want/VBP
to/TO
climb/VB
in/RB
,/,
and/CC
that/IN
a/DT
few/JJ
will/MD
cut/VB
corners/NNS
in/IN
the/DT
process/NN
./.
Some/DT
pretty/RB
seamy/JJ
stuff/NN
built/VBD
the/DT
turn-of-the-century/JJ
families/NNS
'/POS
Fifth/NNP
Avenue/NNP
and/CC
Newport/NNP
palazzi/NNS
and/CC
endowed/VBD
their/PRP$
daughters/NNS
'/POS
weddings/NNS
to/TO
foreign/JJ
noblemen/NNS
./.
Mr./NNP
Boesky/NNP
was/VBD
a/DT
piker/NN
compared/VBN
to/TO
Jay/NNP
Gould/NNP
and/CC
Jim/NNP
Fiske/NNP
,/,
and/CC
Commodore/NNP
Vanderbilt/NNP
thought/VBD
nothing/NN
of/IN
bribing/VBG
judges/NNS
and/CC
legislators/NNS
./.
So/RB
who/WP
knows/VBZ
?/.
In/IN
a/DT
generation/NN
or/CC
two/CD
some/DT
of/IN
the/DT
New/NNP
Crowd/NNP
may/MD
attain/VB
true/JJ
respectability/NN
,/,
perhaps/RB
to/TO
be/VB
displaced/VBN
in/IN
turn/NN
by/IN
a/DT
later/JJ
flock/NN
of/IN
unscrupulous/JJ
raptors/NNS
./.
Or/CC
perhaps/RB
Wall/NNP
Street/NNP
,/,
when/WRB
it/PRP
has/VBZ
suffered/VBN
enough/RB
,/,
will/MD
realize/VB
that/DT
finance/NN
is/VBZ
a/DT
service/NN
industry/NN
,/,
and/CC
change/VB
its/PRP$
ethos/NN
./.
Mr./NNP
Train/NNP
is/VBZ
president/NN
of/IN
Train/NNP
,/,
Smith/NNP
Investment/NNP
Counsel/NNP
,/,
New/NNP
York/NNP
./.
Dallas/NNP
investor/NN
Harold/NNP
C./NNP
Simmons/NNP
said/VBD
he/PRP
raised/VBD
his/PRP$
stake/NN
in/IN
Lockheed/NNP
Corp./NNP
to/TO
10.62/CD
%/NN
from/IN
10.43/CD
%/NN
of/IN
the/DT
aerospace/NN
and/CC
electronics/NN
concern/NN
's/POS
common/JJ
shares/NNS
./.
In/IN
a/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
filing/NN
,/,
Mr./NNP
Simmons/NNP
said/VBD
he/PRP
and/CC
companies/NNS
he/PRP
controls/VBZ
,/,
NL/NNP
Industries/NNP
Inc./NNP
and/CC
NL/NNP
Chemicals/NNP
Inc./NNP
,/,
hold/VBP
6,744,600/CD
shares/NNS
of/IN
Lockheed/NNP
,/,
of/IN
Calabasas/NNP
,/,
Calif/NNP
./.
They/PRP
include/VBP
122,700/CD
shares/NNS
bought/VBD
Friday/NNP
for/IN
between/IN
$/$
47.125/CD
and/CC
$/$
48/CD
each/DT
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Lockheed/NNP
closed/VBD
at/IN
$/$
46.125/CD
a/DT
share/NN
,/,
down/RB
12.5/CD
cents/NNS
./.
Earlier/RBR
this/DT
week/NN
,/,
Mr./NNP
Simmons/NNP
objected/VBD
to/TO
published/VBN
reports/NNS
quoting/VBG
him/PRP
as/IN
saying/VBG
he/PRP
planned/VBD
to/TO
sell/VB
his/PRP$
Lockheed/NNP
stake/NN
because/IN
``/``
the/DT
defense/NN
industry/NN
seems/VBZ
to/TO
be/VB
getting/VBG
more/RBR
uncertain/JJ
./.
''/''
Valhi/NNP
Inc./NNP
,/,
another/DT
of/IN
Mr./NNP
Simmons/NNP
'/POS
companies/NNS
,/,
responded/VBD
to/TO
an/DT
article/NN
Monday/NNP
in/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
,/,
which/WDT
credited/VBD
a/DT
story/NN
in/IN
the/DT
Sunday/NNP
Los/NNP
Angeles/NNP
Daily/NNP
News/NNP
./.
Valhi/NNP
said/VBD
the/DT
articles/NNS
did/VBD
n't/RB
accurately/RB
reflect/VB
Valhi/NNP
and/CC
its/PRP$
affiliates/NNS
'/POS
intentions/NNS
toward/IN
Lockheed/NNP
./.
Instead/RB
,/,
Valhi/NNP
said/VBD
,/,
they/PRP
may/MD
increase/VB
,/,
decrease/VB
or/CC
retain/VB
their/PRP$
Lockheed/NNP
holdings/NNS
,/,
depending/VBG
on/IN
a/DT
number/NN
of/IN
conditions/NNS
./.
Canada/NNP
,/,
which/WDT
is/VBZ
preparing/VBG
to/TO
speed/VB
up/RP
tariff/NN
cuts/NNS
with/IN
the/DT
U.S./NNP
,/,
recorded/VBD
a/DT
47/CD
%/NN
narrowing/NN
in/IN
its/PRP$
trade/NN
surplus/NN
with/IN
the/DT
U.S./NNP
in/IN
August/NNP
,/,
Statistics/NNP
Canada/NNP
,/,
a/DT
federal/JJ
agency/NN
,/,
reported/VBD
./.
U.S./NNP
exports/NNS
to/TO
Canada/NNP
jumped/VBD
11.2/CD
%/NN
in/IN
August/NNP
from/IN
July/NNP
while/IN
U.S./NNP
imports/NNS
from/IN
Canada/NNP
rose/VBD
only/RB
2.7/CD
%/NN
./.
As/IN
a/DT
result/NN
,/,
Canada/NNP
's/POS
trade/NN
surplus/NN
with/IN
the/DT
U.S./NNP
narrowed/VBD
to/TO
C$/$
656.5/CD
million/CD
US$/$
558/CD
million/CD
August/NNP
from/IN
C$/$
1.23/CD
billion/CD
US$/$
1.04/CD
billion/CD
July/NNP
./.
U.S./NNP
exports/NNS
benefited/VBD
in/IN
August/NNP
from/IN
heavy/JJ
Canadian/JJ
spending/NN
on/IN
new/JJ
plant/NN
and/CC
equipment/NN
and/CC
a/DT
pickup/NN
in/IN
Canadian/JJ
auto/NN
demand/NN
,/,
Canadian/JJ
officials/NNS
said/VBD
./.
The/DT
U.S./NNP
and/CC
Canada/NNP
,/,
which/WDT
do/VBP
more/JJR
trade/NN
than/IN
any/DT
other/JJ
pair/NN
of/IN
nations/NNS
,/,
are/VBP
to/TO
meet/VB
next/JJ
month/NN
to/TO
arrange/VB
an/DT
acceleration/NN
of/IN
planned/JJ
tariff/NN
cuts/NNS
under/IN
the/DT
U.S.-Canada/NNP
free/JJ
trade/NN
agreement/NN
./.
Industries/NNS
in/IN
both/DT
countries/NNS
have/VBP
requested/VBN
a/DT
speedup/NN
of/IN
tariff/NN
cuts/NNS
on/IN
hundreds/NNS
of/IN
products/NNS
./.
Some/DT
tariffs/NNS
were/VBD
eliminated/VBN
when/WRB
the/DT
trade/NN
pact/NN
took/VBD
effect/NN
Jan./NNP
1/CD
./.
The/DT
remainder/NN
were/VBD
to/TO
be/VB
phased/VBN
out/RP
in/IN
five/CD
or/CC
10/CD
annual/JJ
installments/NNS
,/,
with/IN
all/DT
tariffs/NNS
eliminated/VBN
by/IN
January/NNP
1998/CD
./.
The/DT
two/CD
countries/NNS
aim/VBP
to/TO
reach/VB
an/DT
agreement/NN
by/IN
early/JJ
December/NNP
on/IN
a/DT
package/NN
of/IN
accelerated/JJ
tariff/NN
cuts/NNS
that/WDT
would/MD
take/VB
effect/VB
early/RB
next/JJ
year/NN
./.
Canadian/JJ
officials/NNS
said/VBD
the/DT
trade/NN
pact/NN
has/VBZ
kindled/VBN
an/DT
export/NN
interest/NN
among/IN
many/JJ
small/JJ
Canadian/JJ
companies/NNS
that/WDT
previously/RB
had/VBD
little/JJ
or/CC
no/RB
foreign/JJ
sales/NNS
./.
For/IN
such/JJ
businessmen/NNS
,/,
the/DT
Canadian/JJ
government/NN
is/VBZ
organizing/VBG
55/CD
missions/NNS
this/DT
year/NN
to/TO
U.S./NNP
states/NNS
bordering/VBG
on/IN
Canada/NNP
./.
The/DT
businessmen/NNS
are/VBP
introduced/VBN
to/TO
potential/JJ
agents/NNS
and/CC
distributors/NNS
and/CC
instructed/VBN
in/IN
trade/NN
procedures/NNS
./.
The/DT
U.S./NNP
Commerce/NNP
Department/NNP
is/VBZ
planning/VBG
to/TO
try/VB
out/RP
similar/JJ
trips/NNS
on/IN
U.S./NNP
businessmen/NNS
in/IN
coming/JJ
months/NNS
under/IN
its/PRP$
Canada/NNP
First/NNP
!/.
Outreach/NNP
Program/NNP
./.
Participants/NNS
in/IN
the/DT
U.S./NNP
missions/NNS
to/TO
Canada/NNP
are/VBP
to/TO
be/VB
assisted/VBN
by/IN
members/NNS
of/IN
the/DT
Service/NNP
Corps/NNP
of/IN
Retired/NNP
Executives/NNP
,/,
a/DT
volunteer/NN
group/NN
,/,
in/IN
dealing/VBG
with/IN
their/PRP$
export/NN
challenges/NNS
./.
The/DT
Canadian/JJ
government/NN
also/RB
has/VBZ
recently/RB
opened/VBN
new/JJ
trade/NN
offices/NNS
in/IN
San/NNP
Diego/NNP
;/:
San/NNP
Juan/NNP
,/,
Puerto/NNP
Rico/NNP
;/:
Miami/NNP
;/:
Princeton/NNP
,/,
N.J./NNP
,/,
and/CC
Denver/NNP
,/,
bringing/VBG
the/DT
total/JJ
number/NN
of/IN
such/JJ
Canadian/JJ
offices/NNS
in/IN
the/DT
U.S./NNP
to/TO
27/CD
./.
The/DT
U.S./NNP
has/VBZ
six/CD
trade/NN
promotion/NN
offices/NNS
in/IN
Canada/NNP
./.
Canada/NNP
's/POS
export/NN
effort/NN
has/VBZ
been/VBN
blunted/VBN
by/IN
robust/JJ
home/NN
market/NN
demand/NN
and/CC
by/IN
an/DT
18/CD
%/NN
appreciation/NN
of/IN
the/DT
Canadian/JJ
dollar/NN
against/IN
its/PRP$
U.S./NNP
counterpart/NN
in/IN
the/DT
past/JJ
three/CD
years/NNS
that/WDT
has/VBZ
made/VBN
Canadian/JJ
goods/NNS
more/RBR
costly/JJ
in/IN
the/DT
U.S/NNP
./.
Canada/NNP
's/POS
trade/NN
surplus/NN
with/IN
all/DT
countries/NNS
narrowed/VBD
to/TO
C$/$
203.5/CD
million/CD
in/IN
August/NNP
from/IN
C$/$
528.3/CD
million/CD
in/IN
July/NNP
,/,
Statistics/NNP
Canada/NNP
said/VBD
./.
Loral/NNP
Corp./NNP
said/VBD
it/PRP
received/VBD
a/DT
$/$
325/CD
million/CD
order/NN
from/IN
Turkey/NNP
's/POS
Ministry/NNP
of/IN
Defense/NNP
,/,
the/DT
largest/JJS
contract/NN
the/DT
company/NN
ever/RB
has/VBZ
received/VBN
./.
Loral/NNP
will/MD
provide/VB
to/TO
Turkey/NNP
an/DT
electronic/JJ
countermeasures/NNS
system/NN
for/IN
its/PRP$
fleet/NN
of/IN
F-16/NNP
aircraft/NN
./.
The/DT
system/NN
provides/VBZ
radar-threat/JJ
warning/NN
and/CC
electronic/JJ
jamming/NN
capabilities/NNS
./.
The/DT
defense/NN
electronics/NNS
maker/NN
said/VBD
delivery/NN
will/MD
begin/VB
in/IN
October/NNP
1991/CD
and/CC
run/VB
through/IN
mid-1995/NN
./.
Loral/NNP
said/VBD
the/DT
contract/NN
with/IN
Turkey/NNP
will/MD
provide/VB
opportunities/NNS
for/IN
Loral/NNP
to/TO
supply/VB
that/DT
country/NN
with/IN
other/JJ
defense/NN
systems/NNS
./.
Crown/NNP
Resources/NNP
Corp./NNP
said/VBD
it/PRP
reached/VBD
a/DT
definitive/JJ
agreement/NN
to/TO
acquire/VB
the/DT
Gold/NNP
Texas/NNP
Resources/NNP
Ltd./NNP
shares/NNS
it/PRP
does/VBZ
n't/RB
already/RB
own/JJ
./.
Under/IN
the/DT
proposed/VBN
agreement/NN
,/,
Gold/NNP
Texas/NNP
holders/NNS
will/MD
receive/VB
1.43/CD
Crown/NNP
shares/NNS
for/IN
each/DT
of/IN
the/DT
1.1/CD
million/CD
Gold/NNP
Texas/NNP
shares/NNS
not/RB
owned/VBN
by/IN
Crown/NNP
,/,
which/WDT
already/RB
owns/VBZ
65/CD
%/NN
./.
The/DT
arrangement/NN
is/VBZ
subject/JJ
to/TO
approval/NN
by/IN
the/DT
Supreme/NNP
Court/NNP
of/IN
British/NNP
Columbia/NNP
province/NN
,/,
Crown/NNP
said/VBD
./.
Gold/NNP
Texas/NNP
is/VBZ
based/VBN
in/IN
Vancouver/NNP
,/,
British/NNP
Columbia/NNP
,/,
and/CC
Crown/NNP
Resources/NNP
is/VBZ
based/VBN
in/IN
Denver/NNP
./.
Both/DT
are/VBP
mining/NN
concerns/NNS
./.
Apogee/NNP
Robotics/NNP
Inc./NNP
said/VBD
its/PRP$
board/NN
extended/VBD
until/IN
Feb./NNP
1/CD
the/DT
exercise/NN
period/NN
of/IN
Apogee/NNP
's/POS
existing/JJ
stock/NN
purchase/NN
warrants/NNS
outstanding/JJ
./.
The/DT
expiration/NN
date/NN
had/VBD
been/VBN
Nov./NNP
3/CD
./.
Each/DT
of/IN
the/DT
1,075,000/CD
warrants/NNS
entitle/VBP
the/DT
holders/NNS
to/TO
purchase/VB
one/CD
share/NN
of/IN
Apogee/NNP
common/JJ
stock/NN
for/IN
$/$
2.25/CD
./.
Apogee/NNP
was/VBD
quoted/VBN
in/IN
the/DT
over-the-counter/JJ
market/NN
yesterday/NN
at/IN
$/$
2/CD
bid/NN
./.
Bank/NNP
of/IN
New/NNP
England/NNP
Corp./NNP
,/,
seeking/VBG
to/TO
streamline/VB
its/PRP$
business/NN
after/IN
a/DT
year/NN
of/IN
weak/JJ
earnings/NNS
and/CC
mounting/VBG
loan/NN
problems/NNS
,/,
said/VBD
it/PRP
will/MD
sell/VB
some/DT
operations/NNS
and/CC
lay/VB
off/RP
4/CD
%/NN
of/IN
its/PRP$
work/NN
force/NN
./.
The/DT
bank/NN
holding/NN
company/NN
also/RB
reported/VBD
that/IN
third-quarter/JJ
profit/NN
dropped/VBD
41/CD
%/NN
,/,
to/TO
$/$
42.7/CD
million/CD
,/,
or/CC
61/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
the/DT
year-earlier/JJ
$/$
72.3/CD
million/CD
,/,
or/CC
$/$
1.04/CD
a/DT
share/NN
./.
Among/IN
its/PRP$
restructuring/NN
measures/NNS
,/,
the/DT
company/NN
said/VBD
it/PRP
plans/VBZ
to/TO
sell/VB
53/CD
of/IN
its/PRP$
453/CD
branch/NN
offices/NNS
and/CC
to/TO
lay/VB
off/RP
800/CD
employees/NNS
./.
Altogether/RB
,/,
employment/NN
is/VBZ
expected/VBN
to/TO
decline/VB
to/TO
less/JJR
than/IN
16,000/CD
from/IN
the/DT
current/JJ
level/NN
of/IN
about/RB
18,000/CD
./.
Walter/NNP
Connolly/NNP
,/,
chairman/NN
,/,
said/VBD
in/IN
an/DT
interview/NN
that/IN
the/DT
company/NN
expects/VBZ
to/TO
record/VB
pretax/JJ
gains/NNS
of/IN
$/$
100/CD
million/CD
to/TO
$/$
125/CD
million/CD
from/IN
the/DT
sale/NN
of/IN
its/PRP$
leasing/NN
operations/NNS
and/CC
of/IN
certain/JJ
financial/JJ
processing/NN
services/NNS
./.
In/IN
a/DT
prepared/JJ
statement/NN
,/,
the/DT
company/NN
said/VBD
it/PRP
expects/VBZ
to/TO
realize/VB
those/DT
gains/NNS
before/IN
year/NN
end/NN
./.
Nonperforming/JJ
assets/NNS
continued/VBD
to/TO
pile/VB
up/RP
in/IN
the/DT
latest/JJS
quarter/NN
,/,
rising/VBG
to/TO
$/$
900/CD
million/CD
,/,
or/CC
3.52/CD
%/NN
of/IN
loans/NNS
and/CC
leases/NNS
,/,
from/IN
$/$
667/CD
million/CD
,/,
or/CC
2.68/CD
%/NN
,/,
at/IN
the/DT
end/NN
of/IN
the/DT
second/JJ
quarter/NN
./.
Some/RB
$/$
170/CD
million/CD
of/IN
the/DT
$/$
233/CD
million/CD
increase/NN
in/IN
nonperforming/JJ
loans/NNS
was/VBD
related/VBN
to/TO
real/JJ
estate/NN
,/,
and/CC
roughly/RB
three-quarters/NNS
of/IN
that/DT
was/VBD
in/IN
the/DT
troubled/JJ
New/NNP
England/NNP
market/NN
,/,
according/VBG
to/TO
Richard/NNP
Driscoll/NNP
,/,
vice/NN
chairman/NN
./.
Mr./NNP
Driscoll/NNP
said/VBD
that/IN
,/,
despite/IN
continued/JJ
weakness/NN
in/IN
the/DT
region/NN
's/POS
real/JJ
estate/NN
market/NN
,/,
Bank/NNP
of/IN
New/NNP
England/NNP
expects/VBZ
the/DT
rate/NN
of/IN
increase/NN
in/IN
nonperforming/JJ
assets/NNS
to/TO
slow/VB
in/IN
coming/JJ
quarters/NNS
./.
Mr./NNP
Connolly/NNP
noted/VBD
that/IN
net/JJ
third-quarter/JJ
charge-offs/NNS
,/,
at/IN
$/$
63/CD
million/CD
,/,
improved/VBD
slightly/RB
from/IN
the/DT
$/$
67/CD
million/CD
in/IN
the/DT
second/JJ
quarter/NN
./.
And/CC
he/PRP
indicated/VBD
that/IN
more/RBR
substantial/JJ
improvement/NN
is/VBZ
expected/VBN
in/IN
the/DT
next/JJ
couple/NN
of/IN
quarters/NNS
./.
The/DT
company/NN
increased/VBD
its/PRP$
loan/NN
loss/NN
reserve/NN
to/TO
$/$
354/CD
million/CD
from/IN
$/$
342/CD
million/CD
at/IN
the/DT
end/NN
of/IN
the/DT
second/JJ
quarter/NN
./.
Total/JJ
assets/NNS
slipped/VBD
to/TO
$/$
31.4/CD
billion/CD
,/,
from/IN
$/$
32/CD
billion/CD
as/IN
of/IN
June/NNP
30/CD
./.
Among/IN
other/JJ
restructuring/NN
measures/NNS
,/,
the/DT
bank/NN
said/VBD
it/PRP
will/MD
close/VB
its/PRP$
loan/NN
production/NN
offices/NNS
in/IN
Chicago/NNP
,/,
New/NNP
York/NNP
and/CC
Philadelphia/NNP
./.
The/DT
Chicago/NNP
office/NN
figured/VBD
prominently/RB
in/IN
the/DT
bank/NN
's/POS
problems/NNS
earlier/RBR
this/DT
year/NN
,/,
when/WRB
$/$
65/CD
million/CD
in/IN
loans/NNS
to/TO
Chicago/NNP
businessman/NN
William/NNP
Stoecker/NNP
went/VBD
sour/JJ
./.
In/IN
an/DT
internal/JJ
memorandum/NN
to/TO
employees/NNS
,/,
Messrs./NNPS
Connolly/NNP
and/CC
Driscoll/NNP
described/VBD
the/DT
restructuring/NN
as/IN
an/DT
effort/NN
to/TO
continue/VB
rationalizing/VBG
operations/NNS
assembled/VBN
during/IN
a/DT
series/NN
of/IN
mergers/NNS
over/IN
the/DT
past/JJ
five/CD
years/NNS
./.
Italy/NNP
's/POS
wholesale/JJ
price/NN
index/NN
rose/VBD
0.4/CD
%/NN
in/IN
August/NNP
from/IN
July/NNP
and/CC
was/VBD
up/RB
6.1/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
,/,
the/DT
state/NN
statistical/JJ
institute/NN
reported/VBD
./.
The/DT
index/NN
registered/VBD
196.1/CD
in/IN
August/NNP
,/,
compared/VBN
with/IN
195.4/CD
in/IN
July/NNP
and/CC
with/IN
184.9/CD
in/IN
August/NNP
1988/CD
./.
The/DT
year-on-year/JJ
rise/NN
in/IN
August/NNP
was/VBD
slightly/RB
down/RB
from/IN
the/DT
6.4/CD
%/NN
rate/NN
in/IN
July/NNP
./.
The/DT
index/NN
has/VBZ
a/DT
base/NN
of/IN
100/CD
set/NN
in/IN
1980/CD
and/CC
is/VBZ
n't/RB
seasonally/RB
adjusted/VBN
./.
U.S./NNP
steel/NN
imports/NNS
in/IN
August/NNP
fell/VBD
14/CD
%/NN
from/IN
a/DT
year/NN
earlier/JJR
to/TO
1,531,000/CD
tons/NNS
,/,
according/VBG
to/TO
the/DT
American/NNP
Iron/NNP
and/CC
Steel/NNP
Institute/NNP
./.
The/DT
trade/NN
group/NN
's/POS
compilation/NN
of/IN
Commerce/NNP
Department/NNP
data/NNS
showed/VBD
that/IN
August/NNP
imports/NNS
,/,
the/DT
second/JJ
largest/JJS
monthly/JJ
total/NN
of/IN
the/DT
year/NN
,/,
were/VBD
up/IN
5/CD
%/NN
from/IN
July/NNP
's/POS
1,458,000/CD
tons/NNS
but/CC
below/IN
last/JJ
year/NN
's/VBZ
high/JJ
of/IN
1,979,000/CD
tons/NNS
in/IN
June/NNP
1988/CD
./.
August/NNP
imports/NNS
claimed/VBD
18.5/CD
%/NN
of/IN
the/DT
U.S./NNP
market/NN
,/,
compared/VBN
with/IN
19.3/CD
%/NN
in/IN
July/NNP
and/CC
20.5/CD
%/NN
in/IN
August/NNP
1988/CD
./.
The/DT
latest/JJS
month/NN
's/POS
figures/NNS
show/VB
that/IN
imports/NNS
of/IN
steel/NN
from/IN
European/NNP
Community/NNP
nations/NNS
fell/VBD
to/TO
466,000/CD
tons/NNS
from/IN
481,000/CD
a/DT
month/NN
earlier/RB
,/,
while/IN
imports/NNS
from/IN
Japan/NNP
rose/VBD
to/TO
323,000/CD
tons/NNS
from/IN
288,000/CD
in/IN
July/NNP
./.
Imports/NNS
from/IN
Canada/NNP
rose/VBD
to/TO
272,000/CD
tons/NNS
in/IN
August/NNP
from/IN
209,000/CD
in/IN
July/NNP
./.
The/DT
American/NNP
Institute/NNP
for/IN
Imported/NNP
Steel/NNP
said/VBD
imports/NNS
for/IN
the/DT
first/JJ
eight/CD
months/NNS
of/IN
1989/CD
were/VBD
below/IN
the/DT
level/NN
allowed/VBN
by/IN
the/DT
Voluntary/NNP
Restraint/NNP
Agreement/NNP
program/NN
./.
The/DT
institute/NN
said/VBD
that/IN
,/,
excluding/VBG
semifinished/VBN
steel/NN
products/NNS
,/,
year-to-date/JJ
imports/NNS
represented/VBD
15.2/CD
%/NN
of/IN
consumption/NN
,/,
compared/VBN
with/IN
a/DT
permitted/VBN
maximum/NN
of/IN
18.5/CD
%/NN
./.
Japanese/JJ
machinery/NN
makers/NNS
received/VBD
orders/NNS
totaling/VBG
1.465/CD
trillion/CD
yen/NN
$/$
10.33/CD
billion/CD
August/NNP
,/,
up/RB
14/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
,/,
the/DT
Economic/NNP
Planning/NNP
Agency/NNP
said/VBD
./.
``/``
Equipment/NN
orders/NNS
on/IN
the/DT
domestic/JJ
side/NN
were/VBD
particularly/RB
strong/JJ
in/IN
shipping/NN
and/CC
power/NN
utilities/NNS
,/,
''/''
said/VBD
an/DT
agency/NN
official/NN
./.
The/DT
latest/JJS
report/NN
compares/VBZ
with/IN
a/DT
modest/JJ
9.9/CD
%/NN
increase/NN
in/IN
July/NNP
machinery/NN
orders/NNS
from/IN
a/DT
year/NN
earlier/RBR
./.
In/IN
August/NNP
,/,
soon/RB
after/IN
Wang/NNP
Laboratories/NNP
Inc./NNP
reported/VBD
a/DT
staggering/JJ
$/$
424.3/CD
million/CD
loss/NN
and/CC
replaced/VBD
its/PRP$
president/NN
,/,
two/CD
Boston/NNP
sales/NNS
representatives/NNS
sent/VBD
customers/NNS
a/DT
letter/NN
saying/VBG
:/:
``/``
We/PRP
fully/RB
expect/VBP
that/IN
you/PRP
will/MD
soon/RB
be/VB
reading/VBG
stories/NNS
in/IN
the/DT
press/NN
reporting/VBG
the/DT
`/``
Amazing/NNP
Comeback/NNP
at/IN
Wang/NNP
./.
'/''
''/''
How/WRB
soon/RB
Wang/NNP
will/MD
stage/VB
a/DT
comeback/NN
,/,
or/CC
if/IN
it/PRP
will/MD
at/IN
all/DT
,/,
are/VBP
still/RB
matters/NNS
of/IN
debate/NN
./.
But/CC
Wang/NNP
salespeople/NN
are/VBP
trying/VBG
to/TO
cope/VB
with/IN
the/DT
biggest/JJS
challenge/NN
any/DT
marketer/NN
can/MD
face/VB
:/:
selling/VBG
the/DT
products/NNS
of/IN
a/DT
company/NN
that/WDT
is/VBZ
on/IN
the/DT
ropes/NNS
./.
``/``
If/IN
your/PRP$
prospect/NN
is/VBZ
feeling/VBG
risk/VB
the/DT
whole/JJ
time/NN
and/CC
you/PRP
're/VBP
not/RB
feeling/VBG
as/IN
if/IN
you/PRP
're/VBP
backed/VBN
up/RP
by/IN
a/DT
stable/JJ
company/NN
,/,
you/PRP
've/VBP
lost/VBN
it/PRP
before/IN
you/PRP
've/VBP
begun/VBN
,/,
''/''
says/VBZ
Mary/NNP
Ann/NNP
Cluggish/NNP
,/,
a/DT
Wellesley/NNP
,/,
Mass./NNP
,/,
sales/NNS
trainer/NN
and/CC
consultant/NN
who/WP
works/VBZ
with/IN
high/JJ
technology/NN
companies/NNS
./.
It/PRP
can/MD
happen/VB
in/IN
any/DT
industry/NN
./.
Consider/VB
the/DT
difficulties/NNS
faced/VBN
by/IN
Audi/NNP
salespeople/NN
when/WRB
the/DT
car/NN
was/VBD
tainted/VBN
by/IN
false/JJ
charges/NNS
of/IN
sudden/JJ
acceleration/NN
,/,
or/CC
Exxon/NNP
dealers/NNS
'/POS
problems/NNS
in/IN
the/DT
wake/NN
of/IN
the/DT
Valdez/NNP
oil/NN
spill/NN
./.
Like/IN
thousands/NNS
of/IN
salespeople/NN
before/IN
them/PRP
,/,
Wang/NNP
's/POS
are/VBP
finding/VBG
ways/NNS
to/TO
combat/VB
the/DT
bad/JJ
news/NN
./.
``/``
It/PRP
's/VBZ
very/RB
important/JJ
that/IN
we/PRP
exude/VBP
confidence/NN
,/,
even/RB
though/IN
within/IN
the/DT
family/NN
we/PRP
know/VBP
there/EX
's/VBZ
a/DT
lot/NN
of/IN
hard/JJ
work/NN
ahead/RB
,/,
''/''
said/VBD
Richard/NNP
Miller/NNP
,/,
the/DT
Lowell/NNP
,/,
Mass./NNP
,/,
computer/NN
concern/NN
's/POS
new/JJ
president/NN
,/,
in/IN
a/DT
video/JJ
message/NN
to/TO
salespeople/NNS
a/DT
month/NN
after/IN
he/PRP
took/VBD
over/RP
./.
Wang/NNP
got/VBD
into/IN
financial/JJ
trouble/NN
because/IN
of/IN
bloated/JJ
overhead/NN
and/CC
overly/RB
optimistic/JJ
sales/NNS
forecasts/NNS
./.
Its/PRP$
mainline/JJ
minicomputers/NNS
and/CC
word/NN
processors/NNS
have/VBP
lost/VBN
ground/NN
to/TO
cheaper/JJR
personal/JJ
computers/NNS
./.
Last/JJ
year/NN
it/PRP
funded/VBD
its/PRP$
high/JJ
employment/NN
by/IN
heavy/JJ
borrowing/NN
,/,
and/CC
it/PRP
suffered/VBD
huge/JJ
losses/NNS
when/WRB
sales/NNS
turned/VBD
down/RB
instead/RB
of/IN
rising/VBG
./.
After/IN
the/DT
company/NN
reported/VBD
red/JJ
ink/NN
for/IN
the/DT
fiscal/JJ
third/JJ
quarter/NN
,/,
Wang/NNP
's/POS
marketing/NN
department/NN
provided/VBD
the/DT
sales/NNS
force/NN
answers/NNS
to/TO
questions/NNS
such/JJ
as/IN
``/``
How/WRB
could/MD
you/PRP
not/RB
have/VB
known/VBN
you/PRP
were/VBD
going/VBG
to/TO
lose/VB
$/$
55/CD
million/CD
?/.
''/''
and/CC
``/``
Is/VBZ
Wang/NNP
still/RB
a/DT
viable/JJ
company/NN
?/.
''/''
Salespeople/NNS
try/VBP
to/TO
push/VB
their/PRP$
products/NNS
and/CC
avoid/VB
discussions/NNS
of/IN
finances/NNS
./.
Responding/VBG
to/TO
such/JJ
questions/NNS
is/VBZ
``/``
defensive/JJ
,/,
''/''
says/VBZ
Kenneth/NNP
Olissa/NNP
,/,
Wang/NNP
's/POS
vice/NN
president/NN
,/,
marketing/NN
./.
``/``
That/DT
's/VBZ
antithetical/JJ
to/TO
the/DT
art/NN
of/IN
selling/VBG
./.
''/''
Moreover/RB
,/,
he/PRP
notes/VBZ
that/IN
analyzing/VBG
financial/JJ
results/NNS
``/``
poses/VBZ
a/DT
problem/NN
for/IN
a/DT
salesman/NN
who/WP
is/VBZ
n't/RB
particularly/RB
familiar/JJ
with/IN
a/DT
balance/NN
sheet/NN
./.
''/''
At/IN
one/CD
sales/NNS
strategy/NN
meeting/NN
,/,
an/DT
executive/NN
suggested/VBD
ordering/VBG
salespeople/NNS
to/TO
become/VB
experts/NNS
on/IN
the/DT
annual/JJ
report/NN
./.
Mr./NNP
Miller/NNP
vetoed/VBD
that/DT
:/:
``/``
Even/RB
I/PRP
ca/MD
n't/RB
understand/VB
all/PDT
the/DT
footnotes/NNS
,/,
''/''
he/PRP
says/VBZ
./.
Instead/RB
,/,
he/PRP
says/VBZ
,/,
if/IN
the/DT
salespeople/NNS
can/MD
get/VB
the/DT
customers/NNS
to/TO
consider/VB
Wang/NNP
's/POS
products/NNS
on/IN
their/PRP$
merits/NNS
,/,
he/PRP
or/CC
a/DT
top/JJ
financial/JJ
officer/NN
will/MD
try/VB
to/TO
assuage/VB
the/DT
fears/NNS
about/IN
finances/NNS
./.
Mike/NNP
Metschan/NNP
,/,
a/DT
salesman/NN
in/IN
Wang/NNP
's/POS
Austin/NNP
,/,
Texas/NNP
,/,
office/NN
,/,
has/VBZ
a/DT
breezier/JJR
method/NN
:/:
``/``
We/PRP
tell/VBP
them/PRP
$/$
3/CD
billion/CD
companies/NNS
do/VBP
n't/RB
go/VB
out/IN
of/IN
business/NN
./.
We/PRP
tell/VBP
them/PRP
all/PDT
the/DT
major/JJ
companies/NNS
are/VBP
having/VBG
financial/JJ
difficulties/NNS
./.
''/''
Numerous/JJ
computer/NN
companies/NNS
are/VBP
having/VBG
sales/NNS
slumps/NNS
and/CC
earnings/NNS
declines/NNS
,/,
but/CC
very/RB
few/JJ
have/VBP
had/VBN
losses/NNS
comparable/JJ
to/TO
Wang/NNP
's/POS
or/CC
are/VBP
carrying/VBG
such/PDT
a/DT
large/JJ
debt/NN
load/NN
./.
Mr./NNP
Miller/NNP
says/VBZ
that/IN
after/IN
a/DT
sharp/JJ
sales/NNS
slump/NN
in/IN
July/NNP
and/CC
August/NNP
,/,
sales/NNS
stabilized/VBD
in/IN
September/NNP
./.
Although/IN
Wang/NNP
will/MD
report/VB
a/DT
loss/NN
for/IN
the/DT
first/JJ
quarter/NN
ended/VBN
Sept./NNP
30/CD
and/CC
the/DT
full/JJ
fiscal/JJ
year/NN
,/,
Mr./NNP
Miller/NNP
says/VBZ
he/PRP
expects/VBZ
the/DT
company/NN
will/MD
return/VB
to/TO
profitability/NN
by/IN
the/DT
fourth/JJ
quarter/NN
./.
Experts/NNS
on/IN
sales/NNS
technique/NN
say/VBP
anyone/NN
representing/VBG
a/DT
troubled/JJ
company/NN
must/MD
walk/VB
a/DT
fine/JJ
line/NN
./.
``/``
If/IN
a/DT
salesman/NN
jeopardizes/VBZ
his/PRP$
credibility/NN
in/IN
this/DT
time/NN
of/IN
trouble/NN
,/,
it/PRP
will/MD
be/VB
a/DT
problem/NN
for/IN
the/DT
long/JJ
run/NN
,/,
''/''
says/VBZ
George/NNP
Palmatier/NNP
,/,
a/DT
Minden/NNP
,/,
Nev./NNP
,/,
sales/NNS
consultant/NN
and/CC
author/NN
of/IN
``/``
The/DT
Marketing/NN
Edge/NN
./.
''/''
Still/RB
,/,
says/VBZ
John/NNP
Sullivan/NNP
,/,
a/DT
management/NN
recruiter/NN
with/IN
Daniel/NNP
Roberts/NNP
Inc./NNP
of/IN
Boston/NNP
,/,
who/WP
has/VBZ
held/VBN
senior/JJ
sales/NNS
positions/NNS
at/IN
Polaroid/NNP
and/CC
Atari/NNP
:/:
``/``
The/DT
customer/NN
will/MD
react/VB
to/TO
strength/NN
./.
Ignore/VB
the/DT
present/JJ
condition/NN
./.
Show/VB
it/PRP
's/VBZ
business/NN
as/IN
usual/JJ
./.
''/''
That/DT
is/VBZ
n't/RB
easy/JJ
./.
Wang/NNP
's/POS
customers/NNS
are/VBP
data/NNS
processing/NN
managers/NNS
who/WP
want/VBP
to/TO
be/VB
sure/JJ
that/IN
their/PRP$
suppliers/NNS
are/VBP
stable/JJ
,/,
wellrun/JJ
companies/NNS
that/WDT
will/MD
be/VB
around/RB
to/TO
fix/VB
bugs/NNS
and/CC
upgrade/VB
computers/NNS
for/IN
years/NNS
to/TO
come/VB
./.
For/IN
buyers/NNS
,/,
``/``
these/DT
are/VBP
career-risking/JJ
decisions/NNS
,/,
''/''
says/VBZ
Jean/NNP
Conlin/NNP
,/,
who/WP
supervises/VBZ
a/DT
network/NN
of/IN
Wang/NNP
computers/NNS
in/IN
the/DT
admissions/NNS
department/NN
at/IN
Boston/NNP
University/NNP
./.
The/DT
university/NN
is/VBZ
considering/VBG
installing/VBG
a/DT
$/$
250,000/CD
system/NN
to/TO
store/VB
applications/NNS
electronically/RB
./.
``/``
Before/IN
the/DT
really/RB
bad/JJ
news/NN
,/,
we/PRP
were/VBD
looking/VBG
at/IN
Wang/NNP
fairly/RB
seriously/RB
,/,
''/''
she/PRP
says/VBZ
./.
But/CC
``/``
their/PRP$
present/JJ
financial/JJ
condition/NN
means/VBZ
I/PRP
'd/MD
have/VB
a/DT
hard/JJ
time/NN
convincing/VBG
the/DT
vice/NN
president/NN
in/IN
charge/NN
of/IN
purchasing/VBG|NN
./.
''/''
Ms./NNP
Conlin/NNP
adds/VBZ
:/:
``/``
At/IN
some/DT
point/NN
we/PRP
'd/MD
have/VB
to/TO
ask/VB
,/,
`/``
How/WRB
do/VBP
we/PRP
know/VB
that/IN
in/IN
three/CD
years/NNS
you/PRP
wo/MD
n't/RB
be/VB
in/IN
Chapter/NNP
11/CD
?/.
'/''
''/''
During/IN
the/DT
past/JJ
year/NN
,/,
Wang/NNP
has/VBZ
developed/VBN
new/JJ
products/NNS
and/CC
a/DT
new/JJ
strategy/NN
and/CC
hired/VBN
a/DT
new/JJ
president/NN
./.
Wang/NNP
's/POS
overall/JJ
product/NN
line/NN
is/VBZ
``/``
still/RB
not/RB
as/RB
good/JJ
as/IN
other/JJ
vendors/NNS
,/,
but/CC
they/PRP
've/VBP
come/VBN
a/DT
long/JJ
way/NN
,/,
''/''
says/VBZ
Steven/NNP
Wendler/NNP
,/,
a/DT
consultant/NN
with/IN
market/NN
researcher/NN
Gartner/NNP
Group/NNP
,/,
Stamford/NNP
,/,
Conn/NNP
./.
``/``
They/PRP
were/VBD
on/IN
the/DT
road/NN
to/TO
recovery/NN
in/IN
terms/NNS
of/IN
customer/NN
attitudes/NNS
until/IN
this/DT
bad/JJ
quarter/NN
happened/VBD
./.
''/''
The/DT
first/JJ
priority/NN
for/IN
Wang/NNP
's/POS
sales/NNS
force/NN
is/VBZ
to/TO
make/VB
sure/JJ
it/PRP
holds/VBZ
on/IN
to/TO
existing/JJ
customers/NNS
./.
Wang/NNP
's/POS
installed/JJ
base/NN
is/VBZ
one/CD
of/IN
its/PRP$
greatest/JJS
assets/NNS
,/,
and/CC
many/JJ
of/IN
those/DT
customers/NNS
remain/VBP
extremely/RB
loyal/JJ
./.
But/CC
even/RB
before/IN
Wang/NNP
's/POS
latest/JJS
financial/JJ
troubles/NNS
surfaced/VBD
,/,
some/DT
customers/NNS
``/``
were/VBD
trying/VBG
to/TO
wall/VB
off/RP
their/PRP$
Wang/NNP
installations/NNS
''/''
so/IN
other/JJ
departments/NNS
would/MD
n't/RB
add/VB
Wang/NNP
,/,
says/VBZ
Chris/NNP
Christiansen/NNP
,/,
a/DT
former/JJ
Wang/NNP
marketer/NN
who/WP
is/VBZ
now/RB
a/DT
market/NN
analyst/NN
with/IN
Meta/NNP
Group/NNP
,/,
a/DT
market/NN
research/NN
firm/NN
in/IN
Stamford/NNP
,/,
Conn/NNP
./.
One/CD
Wang/NNP
salesman/NN
who/WP
left/VBD
the/DT
company/NN
in/IN
July/NNP
recalls/VBZ
that/IN
when/WRB
he/PRP
tried/VBD
to/TO
sell/VB
products/NNS
to/TO
Eastman/NNP
Kodak/NNP
,/,
he/PRP
worked/VBD
``/``
to/TO
muster/VB
support/NN
from/IN
internal/JJ
allies/NNS
,/,
''/''
but/CC
``/``
those/DT
allies/NNS
became/VBD
skeptical/JJ
as/IN
they/PRP
saw/VBD
the/DT
downtrend/NN
./.
The/DT
more/RBR
recent/JJ
losses/NNS
were/VBD
really/RB
devastating/JJ
./.
''/''
New/JJ
customers/NNS
,/,
the/DT
source/NN
of/IN
higher/JJR
commissions/NNS
for/IN
salespeople/NN
and/CC
the/DT
key/NN
to/TO
Wang/NNP
's/POS
long-term/JJ
viability/NN
,/,
are/VBP
even/RB
tougher/JJR
./.
Rick/NNP
Lynch/NNP
,/,
a/DT
former/JJ
top/JJ
salesman/NN
in/IN
Wang/NNP
's/POS
Boston/NNP
office/NN
,/,
referring/VBG
to/TO
Wang/NNP
's/POS
mainstay/JJ
computer/NN
line/NN
,/,
says/VBZ
:/:
``/``
You/PRP
ca/MD
n't/RB
sell/VB
a/DT
VS/NNP
to/TO
a/DT
new/JJ
customer/NN
./.
''/''
Mr./NNP
Lynch/NNP
left/VBD
Wang/NNP
this/DT
summer/NN
for/IN
Oracle/NNP
Systems/NNP
Inc./NNP
,/,
a/DT
software/NN
vendor/NN
./.
The/DT
financial/JJ
problems/NNS
are/VBP
particularly/RB
frustrating/JJ
for/IN
salespeople/NNS
pushing/VBG
Wang/NNP
's/POS
image/NN
systems/NNS
,/,
which/WDT
convert/VBP
paper/NN
forms/NNS
to/TO
electronic/JJ
documents/NNS
./.
Consultants/NNS
say/VBP
that/IN
Wang/NNP
's/POS
technology/NN
is/VBZ
among/IN
the/DT
best/JJS
available/JJ
in/IN
the/DT
image/NN
market/NN
./.
But/CC
salespeople/NNS
often/RB
found/VBD
that/IN
news/NN
of/IN
Wang/NNP
's/POS
problems/NNS
superseded/VBD
their/PRP$
sales/NNS
efforts/NNS
./.
William/NNP
Tait/NNP
,/,
a/DT
former/JJ
sales/NNS
manager/NN
in/IN
Indianapolis/NNP
,/,
says/VBZ
that/IN
his/PRP$
office/NN
had/VBD
all/RB
but/RB
sold/VBD
a/DT
$/$
1.5/CD
million/CD
image/NN
system/NN
to/TO
pharmaceutical/JJ
maker/NN
Eli/NNP
Lilly/NNP
&/CC
Co/NNP
./.
``/``
When/WRB
they/PRP
were/VBD
making/VBG
the/DT
decision/NN
,/,
all/DT
hell/NN
broke/VBD
loose/RB|RP
with/IN
the/DT
finances/NNS
./.
''/''
He/PRP
says/VBZ
the/DT
Lilly/NNP
executives/NNS
told/VBD
him/PRP
they/PRP
could/MD
n't/RB
take/VB
the/DT
risk/NN
with/IN
Wang/NNP
./.
Mr./NNP
Tait/NNP
say/VB
he/PRP
does/VBZ
n't/RB
blame/VB
Lilly/RB
./.
Buyers/NNS
have/VBP
to/TO
rely/VB
on/IN
a/DT
supplier/NN
``/``
continually/RB
upgrading/VBG
and/CC
replacing/VBG
the/DT
product/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
When/WRB
a/DT
company/NN
realizes/VBZ
that/DT
,/,
it/PRP
's/VBZ
hard/JJ
to/TO
go/VB
with/IN
Wang/NNP
./.
''/''
For/IN
Mr./NNP
Tait/NNP
,/,
who/WP
says/VBZ
he/PRP
used/VBD
to/TO
earn/VB
as/RB
much/JJ
as/IN
$/$
150,000/CD
a/DT
year/NN
at/IN
Wang/NNP
,/,
it/PRP
was/VBD
one/CD
more/JJR
reason/NN
to/TO
quit/VB
./.
He/PRP
is/VBZ
now/RB
president/NN
of/IN
Eastate/NNP
Homes/NNP
Inc./NNP
,/,
an/DT
Indianapolis/NNP
contractor/NN
./.
It/PRP
can/MD
be/VB
hard/JJ
for/IN
a/DT
salesperson/NN
to/TO
fight/VB
off/RP
feelings/NNS
of/IN
discouragement/NN
./.
Brian/NNP
Petre/NNP
,/,
a/DT
former/JJ
Wang/NNP
salesman/NN
in/IN
upstate/JJ
New/NNP
York/NNP
,/,
says/VBZ
:/:
``/``
You/PRP
have/VBP
pride/NN
in/IN
your/PRP$
job/NN
./.
You/PRP
think/VBP
you/PRP
can/MD
go/VB
out/RB
and/CC
turn/VB
things/NNS
around/RB|RP
./.
It/PRP
's/VBZ
a/DT
tough/JJ
thing/NN
when/WRB
you/PRP
ca/MD
n't/RB
./.
The/DT
reason/NN
does/VBZ
n't/RB
relate/VB
to/TO
your/PRP$
selling/NN
skills/NNS
./.
''/''
Discouragement/NN
feeds/VBZ
on/IN
itself/PRP
./.
``/``
The/DT
problem/NN
is/VBZ
,/,
if/IN
people/NNS
get/VBP
down/IN
in/IN
the/DT
dumps/NNS
,/,
they/PRP
stop/VBP
selling/VBG
,/,
''/''
says/VBZ
Mike/NNP
Durcan/NNP
,/,
a/DT
laid-off/JJ
sales/NNS
manager/NN
in/IN
Wang/NNP
's/POS
Austin/NNP
office/NN
./.
One/CD
key/NN
for/IN
salespeople/NNS
is/VBZ
to/TO
boost/VB
their/PRP$
own/JJ
morale/NN
./.
Paul/NNP
Hellman/NNP
,/,
a/DT
Framingham/NNP
,/,
Mass./NNP
,/,
sales/NNS
and/CC
management/NN
consultant/NN
and/CC
author/NN
of/IN
``/``
Ready/JJ
,/,
Aim/VB
,/,
You/PRP
're/VBP
Hired/VBN
,/,
''/''
says/VBZ
:/:
``/``
The/DT
bad/JJ
news/NN
is/VBZ
,/,
you/PRP
'll/MD
be/VB
rejected/VBN
more/RBR
./.
The/DT
good/JJ
news/NN
is/VBZ
,/,
it/PRP
's/VBZ
not/RB
your/PRP$
fault/NN
./.
''/''
So/RB
,/,
he/PRP
advises/VBZ
,/,
make/VB
goals/NNS
achievable/JJ
./.
For/IN
instance/NN
,/,
he/PRP
suggests/VBZ
that/IN
salespeople/NNS
making/VBG
telephone/NN
calls/NNS
should/MD
say/VB
to/TO
themselves/PRP
:/:
``/``
All/DT
I/PRP
want/VBP
to/TO
do/VB
today/NN
is/VBZ
get/VB
50/CD
rejections/NNS
./.
''/''
But/CC
Mr./NNP
Miller/NNP
,/,
Wang/NNP
's/POS
new/JJ
president/NN
,/,
recently/RB
warned/VBD
his/PRP$
salespeople/NN
about/IN
negativism/NN
./.
``/``
Our/PRP$
customers/NNS
watch/VBP
us/PRP
for/IN
the/DT
hidden/JJ
message/NN
,/,
''/''
he/PRP
said/VBD
./.
``/``
Look/VB
a/DT
customer/NN
right/RB
in/IN
the/DT
eye/NN
and/CC
say/VB
,/,
`/``
I/PRP
'm/VBP
glad/JJ
to/TO
be/VB
at/IN
Wang/NNP
./.
'/''
''/''
Blinder/NNP
International/NNP
Enterprises/NNP
Inc./NNP
,/,
the/DT
parent/NN
of/IN
beleaguered/JJ
penny-stockbroker/NN
Blinder/NNP
,/,
Robinson/NNP
&/CC
Co./NNP
,/,
said/VBD
its/PRP$
shareholders/NNS
approved/VBD
a/DT
previously/RB
announced/VBN
name/NN
change/NN
to/TO
Intercontinental/NNP
Enterprises/NNP
Inc/NNP
./.
``/``
The/DT
parent/NN
company/NN
is/VBZ
diversifying/VBG
into/IN
other/JJ
industries/NNS
around/IN
the/DT
world/NN
,/,
''/''
said/VBD
president/NN
Meyer/NNP
Blinder/NNP
in/IN
explaining/VBG
the/DT
name/NN
change/NN
./.
``/``
Everytime/RB
we/PRP
talked/VBD
about/IN
Blinder/NNP
International/NNP
,/,
{/(
people/NNS
it/PRP
was/VBD
the/DT
brokerage/NN
house/NN
./.
''/''
Mr./NNP
Blinder/NNP
said/VBD
the/DT
change/NN
was/VBD
n't/RB
related/VBN
to/TO
the/DT
brokerage/NN
's/POS
recent/JJ
troubles/NNS
,/,
which/WDT
have/VBP
included/VBN
sharp/JJ
declines/NNS
in/IN
earnings/NNS
,/,
run-ins/NNS
with/IN
the/DT
securities/NNS
regulators/NNS
and/CC
lawsuits/NNS
by/IN
former/JJ
customers/NNS
./.
The/DT
company/NN
said/VBD
it/PRP
expects/VBZ
the/DT
name/NN
change/NN
to/TO
take/VB
effect/NN
within/IN
a/DT
week/NN
./.
Olin/NNP
Corp./NNP
said/VBD
third-quarter/JJ
net/JJ
income/NN
rose/VBD
26/CD
%/NN
on/IN
the/DT
strength/NN
of/IN
its/PRP$
chemical/NN
business/NN
./.
Net/NN
was/VBD
$/$
24/CD
million/CD
,/,
or/CC
$/$
1.15/CD
a/DT
share/NN
,/,
up/RB
from/IN
$/$
19/CD
million/CD
,/,
or/CC
90/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
rose/VBD
7.4/CD
%/NN
to/TO
$/$
580/CD
million/CD
from/IN
$/$
540/CD
million/CD
./.
Olin/NNP
said/VBD
its/PRP$
chemical/NN
segment/NN
had/VBD
profit/NN
of/IN
$/$
22/CD
million/CD
,/,
up/RB
from/IN
$/$
15/CD
million/CD
a/DT
year/NN
ago/RB
,/,
largely/RB
because/IN
of/IN
gains/NNS
in/IN
electrochemicals/NNS
such/JJ
as/IN
caustic/JJ
soda/NN
./.
The/DT
company/NN
said/VBD
the/DT
gains/NNS
were/VBD
tied/VBN
to/TO
volume/NN
increases/NNS
and/CC
higher/JJR
prices/NNS
./.
The/DT
market/NN
for/IN
electrochemicals/NNS
include/VBP
the/DT
paper/NN
,/,
water-purification/NN
and/CC
textile/JJ
industries/NNS
./.
The/DT
chemical/NN
segment/NN
had/VBD
a/DT
$/$
6/CD
million/CD
gain/NN
on/IN
the/DT
sale/NN
of/IN
ammonia/NN
and/CC
urea/NN
businesses/NNS
,/,
which/WDT
was/VBD
offset/VBN
by/IN
a/DT
$/$
6/CD
million/CD
charge/NN
for/IN
future/JJ
environmental/JJ
expenditures/NNS
./.
Profit/NNP
in/IN
Olin/NNP
's/POS
defense/NN
and/CC
ammunition/NN
segment/NN
rose/VBD
to/TO
$/$
8/CD
million/CD
from/IN
$/$
7/CD
million/CD
./.
The/DT
metals/NNS
segment/NN
,/,
hurt/VBN
by/IN
a/DT
strike/NN
,/,
had/VBD
break-even/JJ
results/NNS
,/,
against/IN
$/$
3/CD
million/CD
a/DT
year/NN
ago/RB
./.
In/IN
the/DT
first/JJ
nine/CD
months/NNS
,/,
net/NN
rose/VBD
21/CD
%/NN
to/TO
$/$
93/CD
million/CD
,/,
or/CC
$/$
4.52/CD
a/DT
share/NN
,/,
from/IN
$/$
77/CD
million/CD
,/,
or/CC
$/$
3.62/CD
a/DT
share/NN
a/DT
year/NN
ago/RB
./.
Sales/NNS
rose/VBD
13/CD
%/NN
to/TO
$/$
1.91/CD
billion/CD
from/IN
$/$
1.69/CD
billion/CD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Olin/NNP
closed/VBD
at/IN
$/$
58.50/CD
a/DT
share/NN
,/,
down/RB
25/CD
cents/NNS
./.
GTE/NNP
Corp./NNP
and/CC
MCI/NNP
Communications/NNP
Corp./NNP
reported/VBD
strong/JJ
earnings/NNS
gains/NNS
to/TO
record/JJ
levels/NNS
for/IN
the/DT
third/JJ
quarter/NN
./.
Southwestern/NNP
Bell/NNP
Corp./NNP
and/CC
Cincinnati/NNP
Bell/NNP
posted/VBD
slight/JJ
declines/NNS
./.
GTE/NNP
Corp/NNP
./.
GTE/NNP
said/VBD
net/JJ
income/NN
rose/VBD
18/CD
%/NN
,/,
aided/VBN
by/IN
higher/JJR
long-distance/JJ
calling/NN
volumes/NNS
and/CC
an/DT
increase/NN
in/IN
telephone/NN
lines/NNS
in/IN
service/NN
./.
Pretax/JJ
operating/NN
profit/NN
from/IN
telephone/NN
operations/NNS
rose/VBD
8.2/CD
%/NN
but/CC
profits/NNS
from/IN
telecommunications/NNS
products/NNS
and/CC
electrical/JJ
products/NNS
were/VBD
flat/JJ
./.
Revenues/NNS
rose/VBD
8.8/CD
%/NN
to/TO
$/$
4.35/CD
billion/CD
from/IN
$/$
4.0/CD
billion/CD
./.
The/DT
company/NN
said/VBD
the/DT
quarter/NN
included/VBD
a/DT
10/CD
%/NN
increase/NN
in/IN
local-exchange/JJ
usage/NN
for/IN
long-distance/JJ
calling/NN
and/CC
a/DT
5/CD
%/NN
increase/NN
in/IN
the/DT
number/NN
of/IN
access/NN
lines/NNS
in/IN
service/NN
./.
Earlier/JJR
rate/NN
reductions/NNS
in/IN
Texas/NNP
and/CC
California/NNP
reduced/VBD
the/DT
quarter/NN
's/POS
revenue/NN
and/CC
operating/NN
profit/NN
$/$
55/CD
million/CD
;/:
a/DT
year/NN
earlier/RBR
,/,
operating/NN
profit/NN
in/IN
telephone/NN
operations/NNS
was/VBD
reduced/VBN
by/IN
a/DT
similar/JJ
amount/NN
as/IN
a/DT
result/NN
of/IN
a/DT
provision/NN
for/IN
a/DT
reorganization/NN
./.
Revenue/NN
in/IN
the/DT
telecommunications/NN
products/NNS
and/CC
services/NNS
unit/NN
rose/VBD
27/CD
%/NN
to/TO
$/$
728.8/CD
million/CD
,/,
but/CC
operating/NN
profit/NN
was/VBD
unchanged/JJ
at/IN
$/$
26.3/CD
million/CD
,/,
partly/RB
because/IN
of/IN
start-up/JJ
expenses/NNS
./.
Electrical/JJ
products/NNS
'/POS
sales/NNS
fell/VBD
to/TO
$/$
496.7/CD
million/CD
from/IN
$/$
504.5/CD
million/CD
with/IN
higher/JJR
world-wide/JJ
lighting/NN
volume/NN
offset/VBN
by/IN
lower/JJR
domestic/JJ
prices/NNS
and/CC
the/DT
impact/NN
of/IN
weaker/JJR
currencies/NNS
in/IN
Europe/NNP
and/CC
South/NNP
America/NNP
./.
Operating/NN
profit/NN
of/IN
$/$
37.2/CD
million/CD
was/VBD
unchanged/JJ
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
GTE/NNP
rose/VBD
$/$
1.25/CD
to/TO
$/$
64.125/CD
./.
MCI/NNP
Communications/NNP
Corp/NNP
./.
MCI/NNP
,/,
which/WDT
stepped/VBD
up/RP
efforts/NNS
to/TO
sell/VB
long-distance/JJ
telephone/NN
service/NN
to/TO
residential/JJ
customers/NNS
,/,
reported/VBD
a/DT
59/CD
%/NN
jump/NN
in/IN
earnings/NNS
./.
Revenue/NN
rose/VBD
23/CD
%/NN
to/TO
$/$
1.67/CD
billion/CD
from/IN
$/$
1.36/CD
billion/CD
./.
Operating/NN
profit/NN
grew/VBD
57/CD
%/NN
to/TO
$/$
269/CD
million/CD
from/IN
$/$
171/CD
million/CD
,/,
while/IN
operating/VBG
margins/NNS
rose/VBD
to/TO
16.1/CD
%/NN
from/IN
15.9/CD
%/NN
the/DT
previous/JJ
quarter/NN
and/CC
12.6/CD
%/NN
a/DT
year/NN
ago/RB
./.
Daniel/NNP
Akerson/NNP
,/,
MCI/NNP
chief/JJ
financial/JJ
officer/NN
,/,
said/VBD
the/DT
company/NN
sees/VBZ
further/JJ
improvements/NNS
in/IN
operating/NN
margins/NNS
./.
``/``
We/PRP
think/VBP
we/PRP
can/MD
take/VB
it/PRP
to/TO
the/DT
18/CD
%/NN
range/NN
over/IN
next/JJ
18/CD
to/TO
24/CD
months/NNS
,/,
''/''
he/PRP
said/VBD
./.
In/IN
national/JJ
over-the-counter/JJ
trading/NN
,/,
MCI/NNP
fell/VBD
$/$
2.625/CD
to/TO
$/$
42.375/CD
./.
Charles/NNP
Schellke/NNP
,/,
an/DT
analyst/NN
with/IN
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
&/CC
Co./NNP
,/,
said/VBD
some/DT
investors/NNS
apparently/RB
expected/VB
slightly/RB
better/JJR
revenue/NN
growth/NN
./.
The/DT
company/NN
said/VBD
that/DT
residential/JJ
traffic/NN
grew/VBD
faster/RBR
than/IN
business/NN
traffic/NN
and/CC
attributed/VBD
that/DT
to/TO
its/PRP$
new/JJ
PrimeTime/NNP
calling/NN
plan/NN
that/WDT
competes/VBZ
with/IN
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
's/POS
Reach/NNP
Out/IN
America/NNP
plan/NN
./.
MCI/NNP
claims/VBZ
about/RB
12/CD
%/NN
of/IN
the/DT
overall/JJ
long-distance/JJ
telephone/NN
market/NN
but/CC
just/RB
under/IN
10/CD
%/NN
of/IN
the/DT
$/$
23/CD
billion/CD
residential/JJ
market/NN
./.
It/PRP
has/VBZ
been/VBN
trying/VBG
to/TO
improve/VB
its/PRP$
share/NN
of/IN
the/DT
residential/JJ
market/NN
./.
The/DT
company/NN
wants/VBZ
its/PRP$
business/NN
mix/NN
to/TO
more/RBR
closely/RB
match/VB
that/DT
of/IN
AT&T/NNP
--/:
a/DT
step/NN
it/PRP
says/VBZ
will/MD
help/VB
prevent/VB
cross/JJ
subsidization/NN
./.
Mr./NNP
Akerson/NNP
said/VBD
MCI/NNP
recorded/VBD
``/``
another/DT
solid/JJ
cash/NN
positive/JJ
quarter/NN
,/,
''/''
its/PRP$
fourth/JJ
in/IN
a/DT
row/NN
,/,
but/CC
declined/VBD
to/TO
comment/VB
on/IN
whether/IN
the/DT
company/NN
is/VBZ
considering/VBG
a/DT
dividend/NN
or/CC
is/VBZ
planning/VBG
any/DT
acquisition/NN
./.
The/DT
current/JJ
quarter/NN
,/,
he/PRP
said/VBD
,/,
``/``
looks/VBZ
fine/JJ
./.
We/PRP
think/VBP
revenue/NN
will/MD
continue/VB
to/TO
grow/VB
and/CC
that/IN
we/PRP
can/MD
control/VB
costs/NNS
and/CC
thus/RB
improve/VB
profitability/NN
./.
''/''
Southwestern/NNP
Bell/NNP
Corp/NNP
./.
Southwestern/NNP
Bell/NNP
Corp./NNP
said/VBD
net/NN
dropped/VBD
8.7/CD
%/NN
,/,
mainly/RB
the/DT
result/NN
of/IN
four/CD
extraordinary/JJ
items/NNS
:/:
a/DT
franchise/NN
tax/NN
refund/NN
that/IN
its/PRP$
Southwestern/NNP
Bell/NNP
Telephone/NNP
Co./NNP
unit/NN
received/VBD
last/JJ
year/NN
;/:
a/DT
production/NN
shift/NN
of/IN
several/JJ
Yellow/NNP
Pages/NNPS
directories/NNS
to/TO
the/DT
fourth/JJ
quarter/NN
from/IN
the/DT
third/JJ
;/:
a/DT
rate/NN
refund/NN
in/IN
Missouri/NNP
and/CC
a/DT
one-time/JJ
adjustment/NN
to/TO
phone/NN
company/NN
revenues/NNS
./.
Revenue/NN
slipped/VBD
1.2/CD
%/NN
to/TO
$/$
2.21/CD
billion/CD
from/IN
$/$
2.23/CD
billion/CD
./.
The/DT
earnings/NNS
drop/NN
had/VBD
been/VBN
expected/VBN
./.
Chairman/NNP
Zane/NNP
E./NNP
Barnes/NNP
said/VBD
Southwestern/NNP
Bell/NNP
's/POS
``/``
businesses/NNS
are/VBP
healthy/JJ
and/CC
are/VBP
continuing/VBG
to/TO
grow/VB
./.
''/''
The/DT
company/NN
reported/VBD
a/DT
3.1/CD
%/NN
increase/NN
in/IN
the/DT
number/NN
of/IN
access/NN
lines/NNS
in/IN
service/NN
,/,
and/CC
also/RB
said/VBD
its/PRP$
Southwestern/NNP
Bell/NNP
Mobile/NNP
Systems/NNP
unit/NN
added/VBD
30,000/CD
new/JJ
customers/NNS
,/,
with/IN
a/DT
current/JJ
total/NN
of/IN
about/RB
333,000/CD
./.
Southwestern/NNP
shares/NNS
fell/VBD
50/CD
cents/NNS
to/TO
$/$
55.875/CD
in/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
Cincinnati/NNP
Bell/NNP
Inc/NNP
./.
Cincinnati/NNP
Bell/NNP
Inc./NNP
said/VBD
net/NN
declined/VBD
1.8/CD
%/NN
./.
The/DT
company/NN
noted/VBD
that/IN
the/DT
year-ago/JJ
period/NN
was/VBD
particularly/RB
strong/JJ
,/,
with/IN
an/DT
increase/NN
of/IN
nearly/RB
70/CD
%/NN
./.
Revenue/NN
jumped/VBD
nearly/RB
17/CD
%/NN
to/TO
$/$
223.3/CD
million/CD
from/IN
$/$
191.4/CD
million/CD
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Cincinnati/NNP
Bell/NNP
fell/VBD
25/CD
cents/NNS
to/TO
$/$
29/CD
./.
The/DT
company/NN
said/VBD
that/IN
the/DT
number/NN
of/IN
access/NN
lines/NNS
dropped/VBD
slightly/RB
in/IN
the/DT
quarter/NN
,/,
a/DT
decline/NN
attributed/VBN
to/TO
seasonal/JJ
fluctuations/NNS
./.
For/IN
the/DT
year/NN
,/,
however/RB
,/,
access/NN
lines/NNS
in/IN
service/NN
have/VBP
increased/VBN
5.5/CD
%/NN
./.
Chairman/NNP
D.H./NNP
Hibbard/NNP
said/VBD
the/DT
company/NN
has/VBZ
set/VBN
a/DT
new/JJ
five/CD
year/NN
goal/NN
of/IN
doubling/VBG
revenues/NNS
to/TO
about/RB
$/$
1.8/CD
billion/CD
while/IN
steadily/RB
increasing/VBG
net/NN
./.
Rockwell/NNP
International/NNP
Corp./NNP
's/POS
Tulsa/NNP
unit/NN
said/VBD
it/PRP
signed/VBD
a/DT
tentative/JJ
agreement/NN
extending/VBG
its/PRP$
contract/NN
with/IN
Boeing/NNP
Co./NNP
to/TO
provide/VB
structural/JJ
parts/NNS
for/IN
Boeing/NNP
's/POS
747/CD
jetliners/NNS
./.
Rockwell/NNP
said/VBD
the/DT
agreement/NN
calls/VBZ
for/IN
it/PRP
to/TO
supply/VB
200/CD
additional/JJ
so-called/JJ
shipsets/NNS
for/IN
the/DT
planes/NNS
./.
These/DT
include/VBP
,/,
among/IN
other/JJ
parts/NNS
,/,
each/DT
jetliner/NN
's/POS
two/CD
major/JJ
bulkheads/NNS
,/,
a/DT
pressure/NN
floor/NN
,/,
torque/NN
box/NN
,/,
fixed/VBN
leading/VBG
edges/NNS
for/IN
the/DT
wings/NNS
and/CC
an/DT
aft/JJ
keel/NN
beam/NN
./.
Under/IN
the/DT
existing/VBG
contract/NN
,/,
Rockwell/NNP
said/VBD
,/,
it/PRP
has/VBZ
already/RB
delivered/VBN
793/CD
of/IN
the/DT
shipsets/NNS
to/TO
Boeing/NNP
./.
Rockwell/NNP
,/,
based/VBN
in/IN
El/NNP
Segundo/NNP
,/,
Calif./NNP
,/,
is/VBZ
an/DT
aerospace/NN
,/,
electronics/NNS
,/,
automotive/JJ
and/CC
graphics/NNS
concern/NN
./.
Frank/NNP
Carlucci/NNP
III/NNP
was/VBD
named/VBN
to/TO
this/DT
telecommunications/NNS
company/NN
's/POS
board/NN
,/,
filling/VBG
the/DT
vacancy/NN
created/VBN
by/IN
the/DT
death/NN
of/IN
William/NNP
Sobey/NNP
last/JJ
May/NNP
./.
Mr./NNP
Carlucci/NNP
,/,
59/CD
years/NNS
old/JJ
,/,
served/VBD
as/IN
defense/NN
secretary/NN
in/IN
the/DT
Reagan/NNP
administration/NN
./.
In/IN
January/NNP
,/,
he/PRP
accepted/VBD
the/DT
position/NN
of/IN
vice/NN
chairman/NN
of/IN
Carlyle/NNP
Group/NNP
,/,
a/DT
merchant/NN
banking/NN
concern/NN
./.
SHEARSON/NNP
LEHMAN/NNP
HUTTON/NNP
Inc/NNP
./.
Thomas/NNP
E./NNP
Meador/NNP
,/,
42/CD
years/NNS
old/JJ
,/,
was/VBD
named/VBN
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
of/IN
Balcor/NNP
Co./NNP
,/,
a/DT
Skokie/NNP
,/,
Ill./NNP
,/,
subsidiary/NN
of/IN
this/DT
New/NNP
York/NNP
investment/NN
banking/NN
firm/NN
./.
Balcor/NNP
,/,
which/WDT
has/VBZ
interests/NNS
in/IN
real/JJ
estate/NN
,/,
said/VBD
the/DT
position/NN
is/VBZ
newly/RB
created/VBN
./.
Mr./NNP
Meador/NNP
had/VBD
been/VBN
executive/JJ
vice/NN
president/NN
of/IN
Balcor/NNP
./.
In/IN
addition/NN
to/TO
his/PRP$
previous/JJ
real-estate/NN
investment/NN
and/CC
asset-management/NN
duties/NNS
,/,
Mr./NNP
Meador/NNP
takes/VBZ
responsibility/NN
for/IN
development/NN
and/CC
property/NN
management/NN
./.
Those/DT
duties/NNS
had/VBD
been/VBN
held/VBN
by/IN
Van/NNP
Pell/NNP
,/,
44/CD
,/,
who/WP
resigned/VBD
as/IN
an/DT
executive/JJ
vice/NN
president/NN
./.
Shearson/NNP
is/VBZ
about/IN
60%-held/JJ
by/IN
American/NNP
Express/NNP
Co/NNP
./.
Great/NNP
American/NNP
Bank/NNP
,/,
citing/VBG
depressed/JJ
Arizona/NNP
real/JJ
estate/NN
prices/NNS
,/,
posted/VBD
a/DT
third-quarter/NN
loss/NN
of/IN
$/$
59.4/CD
million/CD
,/,
or/CC
$/$
2.48/CD
a/DT
share/NN
./.
A/DT
year/NN
earlier/RBR
,/,
the/DT
savings/NNS
bank/NN
had/VBD
earnings/NNS
of/IN
$/$
8.1/CD
million/CD
,/,
or/CC
33/CD
cents/NNS
a/DT
share/NN
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
it/PRP
had/VBD
a/DT
loss/NN
of/IN
$/$
58.3/CD
million/CD
,/,
or/CC
$/$
2.44/CD
a/DT
share/NN
,/,
after/IN
earnings/NNS
of/IN
$/$
29.5/CD
million/CD
,/,
or/CC
$/$
1.20/CD
a/DT
share/NN
,/,
in/IN
the/DT
1988/CD
period/NN
./.
Great/NNP
American/NNP
said/VBD
it/PRP
increased/VBD
its/PRP$
loan-loss/NN
reserves/NNS
by/IN
$/$
93/CD
million/CD
after/IN
reviewing/VBG
its/PRP$
loan/NN
portfolio/NN
,/,
raising/VBG
its/PRP$
total/JJ
loan/NN
and/CC
real/JJ
estate/NN
reserves/NNS
to/TO
$/$
217/CD
million/CD
./.
Before/IN
the/DT
loan-loss/NN
addition/NN
,/,
it/PRP
said/VBD
,/,
it/PRP
had/VBD
operating/VBG
profit/NN
of/IN
$/$
10/CD
million/CD
for/IN
the/DT
quarter/NN
./.
The/DT
move/NN
followed/VBD
a/DT
round/NN
of/IN
similar/JJ
increases/NNS
by/IN
other/JJ
lenders/NNS
against/IN
Arizona/NNP
real/JJ
estate/NN
loans/NNS
,/,
reflecting/VBG
a/DT
continuing/VBG
decline/NN
in/IN
that/DT
market/NN
./.
In/IN
addition/NN
to/TO
the/DT
increased/VBN
reserve/NN
,/,
the/DT
savings/NNS
bank/NN
took/VBD
a/DT
special/JJ
charge/NN
of/IN
$/$
5/CD
million/CD
representing/VBG
general/JJ
and/CC
administrative/JJ
expenses/NNS
from/IN
staff/NN
reductions/NNS
and/CC
other/JJ
matters/NNS
,/,
and/CC
it/PRP
posted/VBD
a/DT
$/$
7.6/CD
million/CD
reduction/NN
in/IN
expected/VBN
mortgage/NN
servicing/VBG
fees/NNS
,/,
reflecting/VBG
the/DT
fact/NN
that/IN
more/JJR
borrowers/NNS
are/VBP
prepaying/VBG
their/PRP$
mortgages/NNS
./.
Arbitragers/NNS
were/VBD
n't/RB
the/DT
only/JJ
big/JJ
losers/NNS
in/IN
the/DT
collapse/NN
of/IN
UAL/NNP
Corp./NNP
stock/NN
./.
Look/VB
at/IN
what/WP
happened/VBD
to/TO
UAL/NNP
's/POS
chairman/NN
,/,
Stephen/NNP
M./NNP
Wolf/NNP
,/,
and/CC
its/PRP$
chief/NN
financial/JJ
officer/NN
,/,
John/NNP
C./NNP
Pope/NNP
./.
On/IN
a/DT
day/NN
some/DT
United/NNP
Airlines/NNPS
employees/NNS
wanted/VBD
Mr./NNP
Wolf/NNP
fired/VBD
and/CC
takeover/NN
stock/NN
speculators/NNS
wanted/VBD
his/PRP$
scalp/NN
,/,
Messrs./NNP
Wolf/NNP
and/CC
Pope/NNP
saw/VBD
their/PRP$
prospective/JJ
personal/JJ
fortunes/NNS
continue/VB
to/TO
plummet/VB
as/IN
shares/NNS
of/IN
UAL/NNP
,/,
United/NNP
's/POS
parent/NN
company/NN
,/,
dived/VBD
$/$
24.875/CD
on/IN
the/DT
Big/NNP
Board/NNP
to/TO
close/VB
at/IN
$/$
198/CD
./.
Including/NNP
Monday/NNP
's/POS
plunge/NN
,/,
that/WDT
has/VBZ
given/VBN
the/DT
two/CD
executives/NNS
paper/NN
losses/NNS
of/IN
$/$
49.5/CD
million/CD
,/,
based/VBN
on/IN
what/WP
they/PRP
would/MD
have/VB
realized/VBN
had/VBD
the/DT
pilots/NNS
and/CC
management-led/JJ
buy-out/NN
of/IN
UAL/NNP
gone/VBN
through/IN
at/IN
$/$
300/CD
a/DT
share/NN
./.
When/WRB
bank/NN
financing/NN
for/IN
the/DT
buy-out/NN
collapsed/VBD
last/JJ
week/NN
,/,
so/RB
did/VBD
UAL/NNP
's/POS
stock/NN
./.
Even/RB
if/IN
the/DT
banks/NNS
resurrect/VBP
a/DT
financing/VBG
package/NN
at/IN
$/$
250/CD
a/DT
share/NN
,/,
the/DT
two/CD
executives/NNS
would/MD
still/RB
get/VB
about/IN
$/$
25/CD
million/CD
less/JJR
than/IN
they/PRP
stood/VBD
to/TO
gain/VB
in/IN
the/DT
initial/JJ
transaction/NN
./.
Mr./NNP
Wolf/NNP
owns/VBZ
75,000/CD
UAL/NNP
shares/NNS
and/CC
has/VBZ
options/NNS
to/TO
buy/VB
another/DT
250,000/CD
at/IN
$/$
83.3125/CD
each/DT
./.
In/IN
the/DT
$/$
300-a-share/JJ
buyout/NN
,/,
that/WDT
totaled/VBD
about/IN
$/$
76.7/CD
million/CD
./.
By/IN
yesterday/NN
's/POS
close/NN
of/IN
trading/NN
,/,
it/PRP
was/VBD
good/JJ
for/IN
a/DT
paltry/JJ
$/$
43.5/CD
million/CD
./.
Of/IN
course/NN
,/,
Mr./NNP
Wolf/NNP
,/,
48/CD
years/NNS
old/JJ
,/,
has/VBZ
some/DT
savings/NNS
./.
He/PRP
left/VBD
his/PRP$
last/JJ
two/CD
jobs/NNS
at/IN
Republic/NNP
Airlines/NNPS
and/CC
Flying/NNP
Tiger/NNP
with/IN
combined/VBN
stock-option/NN
gains/NNS
of/IN
about/IN
$/$
22/CD
million/CD
,/,
and/CC
UAL/NNP
gave/VBD
him/PRP
a/DT
$/$
15/CD
million/CD
bonus/NN
when/WRB
it/PRP
hired/VBD
him/PRP
./.
His/PRP$
1988/CD
salary/NN
was/VBD
$/$
575,000/CD
,/,
with/IN
a/DT
$/$
575,000/CD
bonus/NN
./.
The/DT
40-year/JJ
old/JJ
Mr./NNP
Pope/NNP
has/VBZ
n't/RB
changed/VBN
jobs/NNS
enough/RB
--/:
at/IN
least/JJS
the/DT
right/JJ
ones/NNS
--/:
to/TO
stash/VB
away/RB
that/DT
kind/NN
of/IN
money/NN
./.
United/NNP
paid/VBD
him/PRP
a/DT
$/$
375,000/CD
bonus/NN
to/TO
lure/VB
him/PRP
away/RB
from/IN
American/NNP
Airlines/NNPS
,/,
and/CC
he/PRP
was/VBD
paid/VBN
a/DT
salary/NN
of/IN
$/$
342,122/CD
last/JJ
year/NN
with/IN
a/DT
$/$
280,000/CD
bonus/NN
./.
Mr./NNP
Pope/NNP
owns/VBZ
10,000/CD
UAL/NNP
shares/NNS
and/CC
has/VBZ
options/NNS
to/TO
buy/VB
another/DT
150,000/CD
at/IN
$/$
69/CD
each/DT
./.
That/DT
came/VBD
to/TO
a/DT
combined/VBN
$/$
37.7/CD
million/CD
under/IN
the/DT
$/$
300-a-share/JJ
buy-out/NN
,/,
but/CC
just/RB
$/$
21.3/CD
million/CD
at/IN
yesterday/NN
's/POS
close/NN
./.
Of/IN
the/DT
combined/VBN
$/$
114.4/CD
million/CD
the/DT
two/CD
men/NNS
were/VBD
scheduled/VBN
to/TO
reap/VB
under/IN
the/DT
buy-out/NN
,/,
they/PRP
agreed/VBD
to/TO
invest/VB
in/IN
the/DT
buy-out/NN
just/RB
$/$
15/CD
million/CD
,/,
angering/VBG
many/JJ
of/IN
the/DT
thousands/NNS
of/IN
workers/NNS
asked/VBD
to/TO
make/VB
pay/NN
concessions/NNS
so/IN
the/DT
buy-out/NN
would/MD
be/VB
a/DT
success/NN
./.
United/NNP
's/POS
directors/NNS
voted/VBD
themselves/PRP
,/,
and/CC
their/PRP$
spouses/NNS
,/,
lifetime/NN
access/NN
to/TO
the/DT
Friendly/NNP
Skies/NNPS
--/:
free/JJ
first-class/JJ
travel/NN
,/,
and/CC
$/$
20,000/CD
a/DT
year/NN
for/IN
life/NN
as/RB
well/RB
./.
Conceivably/RB
,/,
in/IN
a/DT
scaled-back/JJ
buy-out/NN
,/,
they/PRP
could/MD
be/VB
bumped/VBN
back/RB
to/TO
coach/NN
seats/NNS
for/IN
life/NN
./.
Thomas/NNP
H./NNP
Johnson/NNP
,/,
president/NN
of/IN
the/DT
Coatedboard/NNP
division/NN
of/IN
Mead/NNP
Corp./NNP
,/,
was/VBD
named/VBN
president/NN
of/IN
Manville/NNP
Forest/NNP
Products/NNPS
Corp./NNP
,/,
a/DT
Manville/NNP
unit/NN
,/,
and/CC
senior/JJ
vice/NN
president/NN
of/IN
Manville/NNP
Corp/NNP
./.
Mr./NNP
Johnson/NNP
succeeds/VBZ
Harry/NNP
W./NNP
Sherman/NNP
,/,
who/WP
resigned/VBD
to/TO
pursue/VB
other/JJ
interests/NNS
,/,
in/IN
both/DT
positions/NNS
./.
Manville/NNP
is/VBZ
a/DT
building/NN
and/CC
forest/NN
products/NNS
concern/NN
./.
US/NNP
Facilities/NNPS
Corp./NNP
said/VBD
Robert/NNP
J./NNP
Percival/NNP
agreed/VBD
to/TO
step/VB
down/IN
as/IN
vice/NN
chairman/NN
of/IN
the/DT
insurance/NN
holding/VBG
company/NN
./.
``/``
There/EX
was/VBD
a/DT
difference/NN
of/IN
opinion/NN
as/IN
to/TO
the/DT
future/JJ
direction/NN
of/IN
the/DT
company/NN
,/,
''/''
a/DT
spokeswoman/NN
said/VBD
./.
Mr./NNP
Percival/NNP
declined/VBD
to/TO
comment/VB
./.
In/IN
a/DT
statement/NN
,/,
US/NNP
Facilities/NNPS
said/VBD
Mr./NNP
Percival/NNP
's/POS
employment/NN
contract/NN
calls/VBZ
for/IN
him/PRP
to/TO
act/VB
as/IN
a/DT
consultant/NN
to/TO
the/DT
company/NN
for/IN
two/CD
years/NNS
./.
He/PRP
will/MD
also/RB
remain/VB
a/DT
director/NN
,/,
US/NNP
Facilities/NNPS
said/VBD
,/,
but/CC
wo/MD
n't/RB
serve/VB
on/IN
any/DT
board/NN
committees/NNS
./.
Mr./NNP
Percival/NNP
will/MD
be/VB
succeeded/VBN
on/IN
an/DT
interim/JJ
basis/NN
by/IN
George/NNP
Kadonada/NNP
,/,
US/NNP
Facilities/NNPS
chairman/NN
and/CC
president/NN
./.
In/IN
the/DT
same/JJ
statement/NN
,/,
US/NNP
Facilities/NNPS
also/RB
said/VBD
it/PRP
had/VBD
bought/VBN
back/RB
112,000/CD
of/IN
its/PRP$
common/JJ
shares/NNS
in/IN
a/DT
private/JJ
transaction/NN
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
The/DT
buy-back/NN
represents/VBZ
about/IN
3/CD
%/NN
of/IN
the/DT
company/NN
's/POS
shares/NNS
,/,
based/VBN
on/IN
the/DT
3.7/CD
million/CD
shares/NNS
outstanding/JJ
as/IN
of/IN
Sept./NNP
30/CD
./.
In/IN
national/JJ
over-the-counter/NN
trading/NN
yesterday/NN
,/,
US/NNP
Facilities/NNPS
closed/VBD
at/IN
$/$
3.625/CD
,/,
unchanged/JJ
./.
Three/CD
leading/VBG
drug/NN
companies/NNS
reported/VBD
robust/JJ
third-quarter/NN
earnings/NNS
,/,
bolstered/VBN
by/IN
strong/JJ
sales/NNS
of/IN
newer/JJR
,/,
big-selling/JJ
prescriptions/NNS
drugs/NNS
that/WDT
provide/VBP
hefty/JJ
profit/NN
margins/NNS
./.
Merck/NNP
&/CC
Co./NNP
reported/VBD
a/DT
25/CD
%/NN
increase/NN
in/IN
earnings/NNS
;/:
Warner-Lambert/NNP
Co./NNP
's/POS
profit/NN
rose/VBD
22/CD
%/NN
and/CC
Eli/NNP
Lilly/NNP
&/CC
Co./NNP
's/POS
net/JJ
income/NN
rose/VBD
24/CD
%/NN
./.
The/DT
results/NNS
were/VBD
in/IN
line/NN
with/IN
analysts/NNS
'/POS
expectations/NNS
./.
Merck/NNP
&/CC
Co/NNP
./.
Merck/NNP
,/,
Rahway/NNP
,/,
N.J./NNP
,/,
continued/VBD
to/TO
lead/VB
the/DT
industry/NN
with/IN
a/DT
strong/JJ
sales/NNS
performance/NN
in/IN
the/DT
human/NN
and/CC
animal/NN
health-products/NNS
segment/NN
./.
A/DT
stronger/JJR
U.S./NNP
dollar/NN
reduced/VBD
third-quarter/NN
and/CC
first-nine-month/JJ
sales/NNS
growth/NN
2/CD
%/NN
and/CC
3/CD
%/NN
,/,
respectively/RB
./.
International/JJ
sales/NNS
accounted/VBD
for/IN
47/CD
%/NN
of/IN
total/JJ
company/NN
sales/NNS
for/IN
the/DT
nine/CD
months/NNS
,/,
compared/VBN
with/IN
50/CD
%/NN
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
for/IN
the/DT
quarter/NN
rose/VBD
to/TO
$/$
1.63/CD
billion/CD
from/IN
$/$
1.47/CD
billion/CD
./.
Mevacor/NNP
,/,
Merck/NNP
's/POS
new/JJ
cholesterol-lowering/JJ
drug/NN
,/,
had/VBD
higher/JJR
sales/NNS
than/IN
any/DT
other/JJ
prescription/NN
medicine/NN
has/VBZ
ever/RB
achieved/VBN
in/IN
the/DT
U.S./NNP
in/IN
the/DT
year/NN
following/VBG
introduction/NN
,/,
the/DT
company/NN
said/VBD
./.
The/DT
drug/NN
was/VBD
introduced/VBN
in/IN
West/NNP
Germany/NNP
this/DT
year/NN
./.
Intense/JJ
competition/NN
,/,
however/RB
,/,
led/VBD
to/TO
unit/NN
sales/NNS
declines/NNS
for/IN
a/DT
group/NN
of/IN
Merck/NNP
's/POS
established/VBN
human/NN
and/CC
animal-health/NN
products/NNS
,/,
including/VBG
Aldomet/NNP
and/CC
Indocin/NNP
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
Merck/NN
shares/NNS
closed/VBD
at/IN
$/$
75.25/CD
,/,
up/IN
50/CD
cents/NNS
./.
Warner-Lambert/NNP
Co/NNP
./.
Warner-Lambert/NNP
,/,
Morris/NNP
Plains/NNP
,/,
N.J./NNP
,/,
reported/VBD
sales/NNS
that/WDT
were/VBD
a/DT
record/NN
for/IN
any/DT
quarter/NN
and/CC
the/DT
eighth/JJ
quarter/NN
in/IN
a/DT
row/NN
of/IN
20/CD
%/NN
or/CC
more/JJR
per-share/JJ
earnings/NNS
growth/NN
./.
Spurred/VBN
by/IN
growth/NN
in/IN
world-wide/JJ
sales/NNS
of/IN
the/DT
company/NN
's/POS
prescription/NN
drugs/NNS
,/,
Warner-Lambert/NNP
said/VBD
1989/CD
will/MD
be/VB
the/DT
best/JJS
year/NN
in/IN
its/PRP$
history/NN
,/,
with/IN
per-share/JJ
earnings/NNS
expected/VBN
to/TO
increase/VB
more/JJR
than/IN
20/CD
%/NN
to/TO
about/IN
$/$
6.10/CD
./.
Sales/NNS
for/IN
the/DT
quarter/NN
rose/VBD
to/TO
$/$
1.11/CD
billion/CD
from/IN
$/$
1.03/CD
billion/CD
./.
Prescription-drug/NN
world-wide/JJ
sales/NNS
rose/VBD
9/CD
%/NN
in/IN
the/DT
quarter/NN
to/TO
$/$
340/CD
million/CD
;/:
U.S./NNP
sales/NNS
rose/VBD
15/CD
%/NN
./.
The/DT
segment/NN
's/POS
growth/NN
was/VBD
led/VBN
by/IN
sales/NNS
of/IN
the/DT
cardiovascular/JJ
drugs/NNS
Lopid/NNP
,/,
a/DT
lipid/NN
regulator/NN
,/,
and/CC
Dilzem/NNP
,/,
a/DT
calcium/NN
channel/NN
blocker/NN
./.
World-wide/JJ
sales/NNS
of/IN
Warner-Lambert/NNP
's/POS
non-prescription/JJ
health-care/NN
products/NNS
,/,
such/JJ
as/IN
Halls/NNP
cough/NN
tablets/NNS
,/,
Rolaids/NNP
antacid/NN
,/,
and/CC
Lubriderm/NNP
skin/NN
lotion/NN
,/,
increased/VBD
3/CD
%/NN
to/TO
$/$
362/CD
million/CD
in/IN
the/DT
third/JJ
quarter/NN
;/:
U.S./NNP
sales/NNS
rose/VBD
5/CD
%/NN
./.
Confectionery/JJ
products/NNS
sales/NNS
also/RB
had/VBD
strong/JJ
growth/NN
in/IN
the/DT
quarter/NN
./.
World-wide/JJ
sales/NNS
of/IN
Trident/NNP
gum/NN
,/,
Certs/NNP
breath/NN
mints/NNS
,/,
and/CC
Clorets/NNP
gum/NN
and/CC
breath/NN
mints/NNS
,/,
increased/VB
12/CD
%/NN
to/TO
$/$
277/CD
million/CD
./.
Warner-Lambert/NNP
shares/NNS
closed/VBD
at/IN
$/$
109.50/CD
a/DT
share/NN
,/,
up/IN
$/$
1.50/CD
,/,
in/IN
Big/NNP
Board/NNP
composite/JJ
trading/NN
yesterday/NN
./.
Eli/NNP
Lilly/NNP
&/CC
Co/NNP
./.
Lilly/NNP
attributed/VBD
record/NN
third-quarter/JJ
and/CC
nine-month/JJ
results/NNS
to/TO
world-wide/JJ
gains/NNS
for/IN
pharmaceuticals/NNS
,/,
medical/JJ
instruments/NNS
and/CC
plant-science/NN
products/NNS
despite/IN
poor/JJ
exchange/NN
rates/NNS
for/IN
the/DT
dollar/NN
that/WDT
slowed/VBD
sales/NNS
abroad/RB
./.
Earnings/NNS
continued/VBD
to/TO
pace/VB
sales/NNS
because/IN
of/IN
a/DT
lower/JJR
tax/NN
rate/NN
,/,
profit/NN
from/IN
the/DT
renegotiation/NN
of/IN
the/DT
debt/NN
instrument/NN
received/VBN
from/IN
Faberge/NNP
Inc./NNP
in/IN
connection/NN
with/IN
Lilly/NNP
's/POS
sale/NN
of/IN
Elizabeth/NNP
Arden/NNP
Inc./NNP
in/IN
1987/CD
,/,
and/CC
net/JJ
proceeds/NNS
from/IN
the/DT
settlement/NN
of/IN
patent/NN
litigation/NN
at/IN
Lilly/NNP
's/POS
Hybritech/NNP
Inc./NNP
unit/NN
./.
Third-quarter/NN
sales/NNS
of/IN
the/DT
Indianapolis/NNP
,/,
Ind./NNP
,/,
company/NN
rose/VBD
11/CD
%/NN
to/TO
$/$
1.045/CD
billion/CD
from/IN
$/$
940.6/CD
million/CD
./.
Nine-month/JJ
sales/NNS
grew/VBD
12/CD
%/NN
to/TO
$/$
3.39/CD
billion/CD
from/IN
$/$
3.03/CD
billion/CD
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
of/IN
Prozac/NNP
,/,
an/DT
anti-depressant/NN
,/,
led/VBD
drug-sales/NNS
increases/NNS
./.
Higher/JJR
sales/NNS
of/IN
pesticides/NNS
and/CC
other/JJ
plant-science/NN
products/NNS
more/RBR
than/IN
offset/VBP
a/DT

slight/JJ
decline/NN
in/IN
the/DT
sales/NNS
of/IN
animal-health/NN
products/NNS
to/TO
fuel/VB
the/DT
increase/NN
in/IN
world-wide/JJ
agricultural/JJ
product/NN
sales/NNS
,/,
Lilly/NNP
said/VBD
./.
Advanced/NNP
Cardiovascular/NNP
Systems/NNPS
Inc./NNP
and/CC
Cardiac/NNP
Pacemakers/NNPS
Inc./NNP
units/NNS
led/VBD
growth/NN
in/IN
the/DT
medical-instrument/JJ
systems/NNS
division/NN
./.
Lilly/NNP
shares/NNS
closed/VBD
yesterday/NN
in/IN
composite/JJ
trading/NN
on/IN
the/DT
Big/NNP
Board/NNP
at/IN
$/$
62.25/CD
,/,
down/IN
12.5/CD
cents/NNS
./.
Reuben/NNP
Mark/NNP
,/,
chairman/NN
of/IN
Colgate-Palmolive/NNP
Co./NNP
,/,
said/VBD
he/PRP
is/VBZ
``/``
comfortable/JJ
''/''
with/IN
analysts/NNS
'/POS
estimates/NNS
that/IN
third-quarter/NN
earnings/NNS
rose/VBD
to/TO
between/IN
95/CD
cents/NNS
and/CC
$/$
1.05/CD
a/DT
share/NN
./.
That/DT
compares/VBZ
with/IN
per-share/JJ
earnings/NNS
from/IN
continuing/VBG
operations/NNS
of/IN
69/CD
cents/NNS
the/DT
year/NN
earlier/RBR
;/:
including/VBG
discontinued/VBN
operations/NNS
,/,
per-share/NN
was/VBD
88/CD
cents/NNS
a/DT
year/NN
ago/IN
./.
The/DT
per-share/JJ
estimates/NNS
mean/VBP
the/DT
consumer-products/NNS
company/NN
's/POS
net/NN
income/NN
,/,
increased/VBD
to/TO
between/IN
$/$
69.5/CD
million/CD
and/CC
$/$
76/CD
million/CD
,/,
from/IN
$/$
47.1/CD
million/CD
the/DT
year-before/JJ
period/NN
./.
Analysts/NNS
estimate/VBP
Colgate/NNP
's/POS
world-wide/JJ
third-quarter/NN
sales/NNS
rose/VBD
about/IN
8/CD
%/NN
to/TO
$/$
1.29/CD
billion/CD
./.
Mr./NNP
Mark/NNP
attributed/VBD
the/DT
earnings/NNS
growth/NN
to/TO
strong/JJ
sales/NNS
in/IN
Latin/NNP
America/NNP
,/,
Asia/NNP
and/CC
Europe/NNP
./.
Results/NNS
were/VBD
also/RB
bolstered/VBN
by/IN
``/``
a/DT
very/RB
meaningful/JJ
''/''
increase/NN
in/IN
operating/VBG
profit/NN
by/IN
Colgate/NNP
's/POS
U.S./NNP
business/NN
,/,
Mr./NNP
Mark/NNP
said/VBD
./.
Operating/VBG
profit/NN
at/IN
Colgate/NNP
's/POS
U.S./NNP
household/NN
products/NNS
and/CC
personal-care/JJ
businesses/NNS
jumped/VBD
25/CD
%/NN
in/IN
the/DT
quarter/NN
,/,
Mr./NNP
Mark/NNP
added/VBD
./.
He/PRP
said/VBD
the/DT
improvement/NN
was/VBD
a/DT
result/NN
of/IN
cost/NN
savings/NNS
achieved/VBN
by/IN
consolidating/VBG
manufacturing/VBG
operations/NNS
,/,
blending/VBG
two/CD
sales/NNS
organizations/NNS
and/CC
focusing/VBG
more/RBR
carefully/RB
the/DT
company/NN
's/POS
promotional/JJ
activities/NNS
./.
The/DT
estimated/VBN
improvement/NN
in/IN
Colgate/NNP
's/POS
U.S./NNP
operations/NNS
took/VBD
some/DT
analysts/NNS
by/IN
surprise/NN
./.
Colgate/NNP
's/POS
household/NN
products/NNS
business/NN
,/,
which/WDT
includes/VBZ
such/JJ
brands/NNS
as/IN
Fab/NNP
laundry/NN
detergent/NN
and/CC
Ajax/NNP
cleanser/NN
,/,
has/VBZ
been/VBN
a/DT
weak/JJ
performer/JJ
./.
Analysts/NNS
estimate/VBP
Colgate/NNP
's/POS
sales/NNS
of/IN
household/NN
products/NNS
in/IN
the/DT
U.S./NNP
were/VBD
flat/JJ
for/IN
the/DT
quarter/NN
,/,
and/CC
they/PRP
estimated/VBD
operating/VBG
margins/NNS
at/IN
only/RB
1/CD
%/NN
to/TO
3/CD
%/NN
./.
``/``
If/IN
you/PRP
could/MD
say/VB
their/PRP$
business/NN
in/IN
the/DT
U.S./NNP
was/VBD
mediocre/JJ
,/,
but/CC
great/RB
everywhere/RB
else/RB
,/,
that/IN
would/MD
be/VB
fine/JJ
,/,
''/''
says/VBZ
Bonita/NNP
Austin/NNP
,/,
an/DT
analyst/NN
with/IN
Wertheim/NNP
Schroder/NNP
&/CC
Co/NNP
./.
``/``
But/CC
it/PRP
's/VBZ
not/RB
mediocre/JJ
,/,
it/PRP
's/VBZ
a/DT
real/JJ
problem/NN
./.
''/''
Mr./NNP
Mark/NNP
conceded/VBD
that/DT
Colgate/NNP
's/POS
domestic/JJ
business/NN
,/,
apart/RB
from/IN
its/PRP$
highly/RB
profitable/JJ
Hill/NNP
's/POS
Pet/NNP
Products/NNPS
unit/NN
,/,
has/VBZ
lagged/VBN
./.
``/``
We/PRP
've/VBP
done/VBN
a/DT
lot/NN
to/TO
improve/VB
{/(
U.S/NNP
./.
a/DT
lot/NN
more/RBR
will/MD
be/VB
done/VBN
,/,
''/''
Mr./NNP
Mark/NNP
said/VBD
./.
``/``
Improving/VBG
profitability/NN
of/IN
U.S./NNP
operations/NNS
is/VBZ
an/DT
extremely/RB
high/JJ
priority/NN
in/IN
the/DT
company/NN
./.
''/''
To/TO
focus/VB
on/IN
its/PRP$
global/JJ
consumer-products/NNS
business/NN
,/,
Colgate/NNP
sold/VBD
its/PRP$
Kendall/NNP
health-care/NN
business/NN
in/IN
1988/CD
./.
H./NNP
Anthony/NNP
Ittleson/NNP
was/VBD
elected/VBN
a/DT
director/NN
of/IN
this/DT
company/NN
,/,
which/WDT
primarily/RB
has/VBZ
interests/NNS
in/IN
radio/NN
and/CC
television/NN
stations/NNS
,/,
increasing/VBG
the/DT
number/NN
of/IN
seats/NNS
to/TO
five/CD
./.
Osborn/NNP
also/RB
operates/VBZ
Muzak/NNP
franchises/NNS
,/,
entertainment/NN
properties/NNS
and/CC
small/JJ
cable-television/NN
systems/NNS
./.
Mr./NNP
Ittleson/NNP
is/VBZ
executive/JJ
,/,
special/JJ
projects/NNS
,/,
at/IN
CIT/NNP
Group/NNP
Holdings/NNP
Inc./NNP
,/,
which/WDT
is/VBZ
controlled/VBN
by/IN
Manufacturers/NNPS
Hanover/NNP
Corp/NNP
./.
The/DT
Boston/NNP
Globe/NNP
says/VBZ
its/PRP$
newly/RB
redesigned/VBN
pages/NNS
have/VBP
a/DT
``/``
crisper/NN
''/''
look/NN
with/IN
revamped/VBN
fixtures/NNS
aimed/VBN
at/IN
making/VBG
the/DT
paper/NN
``/``
more/RBR
consistent/JJ
''/''
and/CC
``/``
easier/JJR
to/TO
read/VB
./.
''/''
Maybe/RB
so/RB
--/:
if/IN
you/PRP
can/MD
find/VB
where/WRB
your/PRP$
favorite/JJ
writer/NN
went/VBD
./.
Beantown/NNP
scribes/NNS
,/,
who/WP
spare/VBP
no/DT
invective/NN
when/WRB
taking/VBG
on/IN
local/JJ
luminaries/NNS
such/JJ
as/IN
Michael/NNP
``/``
Pee/NNP
Wee/NNP
''/''
Dukakis/NNP
,/,
or/CC
New/NNP
England/NNP
Patriots/NNPS
Coach/NNP
Raymond/NNP
``/``
Rev./NNP
Ray/NNP
''/''
Berry/NN
,/,
yesterday/NN
poured/VBD
ridicule/NN
on/IN
new/JJ
drawings/NNS
of/IN
Globe/NNP
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that/WDT
replaced/VBD
old/JJ
photos/NNS
in/IN
the/DT
revamped/VBN
pages/NNS
this/DT
week/NN
./.
By/IN
late/JJ
last/JJ
night/NN
,/,
Globe/NNP
Managing/NNP
Editor/NNP
Thomas/NNP
Mulvoy/NNP
,/,
bending/VBG
to/TO
the/DT
will/NN
of/IN
his/PRP$
troops/NNS
,/,
scrapped/VBD
the/DT
new/JJ
drawings/NNS
./.
For/IN
a/DT
few/JJ
days/NNS
at/IN
least/JJS
,/,
he/PRP
says/VBZ
,/,
no/DT
pictures/NNS
or/CC
drawings/NNS
of/IN
any/DT
kind/NN
will/MD
adorn/VB
the/DT
columns/NNS
./.
Trouble/NN
was/VBD
,/,
nobody/NN
thought/VBD
they/PRP
looked/VBD
right/RB
./.
Globe/NNP
columnist/NN
Mike/NNP
Barnicle/NNP
--/:
in/IN
the/DT
second/JJ
attack/NN
on/IN
his/PRP$
employer/NN
in/IN
as/RB
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--/:
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,/,
it/PRP
looked/VBD
``/``
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a/DT
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you/PRP
'd/MD
find/VB
on/IN
a/DT
bottle/NN
of/IN
miracle/NN
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that/WDT
promises/VBZ
to/TO
do/VB
away/RB
with/IN
diarrhea/NN
in/IN
our/PRP$
lifetime/NN
./.
''/''
Mr./NNP
Barnicle/NNP
reminded/VBD
readers/NNS
that/IN
he/PRP
still/RB
has/VBZ
n't/RB
forgiven/VBN
Globe/NNP
management/NN
for/IN
questioning/VBG
a/DT
$/$
20/CD
expense/NN
chit/NN
he/PRP
submitted/VBD
for/IN
parking/VBG
his/PRP$
car/NN
while/IN
chasing/VBG
a/DT
story/NN
./.
``/``
I/PRP
thought/VBD
{/(
the/DT
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a/DT
cross/NN
between/IN
someone/NN
you/PRP
'd/MD
spot/VB
whipping/VBG
open/JJ
his/PRP$
trench/NN
coat/NN
.../:
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a/DT
guy/NN
who/WP
boasted/VBD
he/PRP
'd/VBD
been/VBN
Charles/NNP
Manson/NNP
's/POS
roommate/NN
for/IN
the/DT
last/JJ
19/CD
years/NNS
,/,
''/''
he/PRP
said/VBD
./.
Mr./NNP
Barnicle/NNP
was/VBD
hardly/RB
kinder/JJR
to/TO
the/DT
renderings/NNS
of/IN
colleagues/NNS
Michael/NNP
Madden/NNP
``/``
appears/NNS
to/TO
be/VB
a/DT
pervert/NN
''/''
)/)
,/,
Will/NNP
McDonough/NNP
``/``
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as/IN
if/IN
he/PRP
drove/VBD
for/IN
Abe/NNP
Lincoln/NNP
''/''
)/)
or/CC
Bella/NNP
English/NNP
,/,
whose/WP$
``/``
little/JJ
girl/NN
now/RB
screams/VBZ
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every/DT
time/NN
she/PRP
sees/VBZ
a/DT
newspaper/NN
./.
''/''
Lynn/NNP
Staley/NNP
,/,
the/DT
Globe/NNP
's/POS
assistant/NN
managing/VBG
editor/NN
for/IN
design/NN
,/,
acknowledges/VBZ
that/IN
the/DT
visages/NNS
were/VBD
``/``
on/IN
the/DT
low/JJ
end/NN
of/IN
the/DT
likeness/NN
spectrum/NN
./.
''/''
Rival/NNP
Boston/NNP
Herald/NNP
columnist/NN
Howie/NNP
Carr/NNP
,/,
who/WP
usually/RB
rails/VBZ
at/IN
Statehouse/NN
``/``
hacks/NNS
''/''
and/CC
nepotism/NN
,/,
argued/VBD
that/IN
the/DT
new/JJ
drawings/NNS
were/VBD
designed/VBN
to/TO
hide/VB
Mr./NNP
Madden/NNP
's/POS
``/``
rapidly/RB
growing/VBG
forehead/NN
''/''
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the/DT
facial/JJ
defects/NNS
of/IN
``/``
chinless/JJ
''/''
Dan/NNP
Shaughnessy/NNP
,/,
a/DT
Globe/NNP
sports/NNS
columnist/NN
./.
``/``
But/CC
think/VB
of/IN
the/DT
money/NN
you/PRP
,/,
the/DT
reader/NN
,/,
will/MD
save/VB
on/IN
Halloween/NNP
,/,
''/''
said/VBD
Mr./NNP
Barnicle/NNP
./.
``/``
Instead/RB
of/IN
buying/VBG
masks/NNS
for/IN
your/PRP$
kids/NNS
,/,
just/RB
cut/VB
out/IN
the/DT
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'/POS
pictures/NNS
.../:
./.
''/''
Deeply/RB
ingrained/JJ
in/IN
both/PDT
the/DT
book/NN
review/NN
``/``
Kissing/VBG
Nature/NN
Good-bye/NN
''/''
by/IN
Stephen/NNP
MacDonald/NNP
Leisure/NNP
&/CC
Arts/NNPS
,/,
Sept./NNP
27/CD
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books/NNS
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is/VBZ
the/DT
assumption/NN
that/IN
global/JJ
warming/NN
is/VBZ
entirely/RB
a/DT
result/NN
of/IN
human/JJ
activity/NN
./.
Is/VBZ
such/JJ
a/DT
view/NN
justified/VBN
?/.
In/IN
the/DT
absence/NN
of/IN
humans/NNS
,/,
would/MD
the/DT
Earth/NN
enjoy/VB
a/DT
constant/JJ
climate/NN
over/IN
the/DT
long/JJ
term/NN
?/.
Clearly/RB
not/RB
./.
About/IN
20,000/CD
years/NNS
ago/IN
the/DT
last/JJ
ice/NN
age/NN
ended/VBD
./.
Enormous/JJ
ice/NN
sheets/NNS
retreated/VBD
from/IN
the/DT
face/NN
of/IN
North/NNP
America/NNP
,/,
northern/JJ
Europe/NNP
and/CC
Asia/NNP
./.
This/DT
global/JJ
warming/NN
must/MD
have/VB
been/VBN
entirely/RB
natural/JJ
--/:
nobody/NN
would/MD
blame/VB
it/PRP
on/IN
a/DT
few/JJ
hundred/CD
thousand/CD
hunter-gatherers/NNS
hunting/VBG
mammoths/NNS
and/CC
scratching/VBG
around/IN
in/IN
caves/NNS
./.
Furthermore/RB
,/,
no/DT
bell/NN
has/VBZ
yet/RB
rung/VBN
to/TO
announce/VB
the/DT
end/NN
of/IN
this/DT
immense/JJ
episode/NN
of/IN
natural/JJ
global/JJ
warming/NN
./.
It/PRP
is/VBZ
probably/RB
continuing/VBG
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may/MD
well/RB
account/VB
for/IN
most/RBS
of/IN
,/,
or/CC
all/DT
of/IN
,/,
present-day/JJ
global/JJ
warming/NN
./.
I/PRP
bow/VBP
to/TO
no/DT
one/CD
in/IN
my/PRP$
regard/NN
for/IN
our/PRP$
terrestrial/JJ
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,/,
but/CC
if/IN
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about/IN
global/JJ
warming/NN
we/PRP
must/MD
look/VB
at/IN
the/DT
big/JJ
picture/NN
and/CC
not/RB
allow/VB
the/DT
Dominant/NNP
Culture/NNP
to/TO
lock/VB
us/PRP
into/IN
the/DT
capitalist-exploiters-greedy-American-consumers-global/JJ
warming/NN
scenario/NN
as/IN
the/DT
sole/JJ
model/NN
for/IN
discussion/NN
./.
Jocelyn/NNP
Tomkin/NNP
Astronomy/NNP
Department/NNP
University/NNP
of/IN
Texas/NNP
Austin/NNP
,/,
Texas/NNP
The/DT
Internal/NNP
Revenue/NNP
Service/NNP
plans/VBZ
to/TO
restructure/VB
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more/RBR
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a/DT
private/JJ
corporation/NN
./.
In/IN
addition/NN
,/,
the/DT
tax-collecting/JJ
agency/NN
says/VBZ
that/IN
it/PRP
will/MD
take/VB
the/DT
unusual/JJ
step/NN
of/IN
looking/VBG
to/TO
the/DT
private/JJ
sector/NN
to/TO
fill/VB
two/CD
new/JJ
high-level/JJ
positions/NNS
to/TO
guide/VB
the/DT
120,000-employee/JJ
agency/NN
:/:
a/DT
comptroller/NN
to/TO
oversee/VB
daily/JJ
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and/CC
a/DT
chief/NN
information/NN
officer/NN
to/TO
update/VB
the/DT
information/NN
system/NN
,/,
which/WDT
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probably/RB
the/DT
largest/JJS
computer/NN
data/NNS
base/NN
in/IN
the/DT
world/NN
./.
The/DT
IRS/NNP
also/RB
said/VBD
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it/PRP
would/MD
create/VB
the/DT
position/NN
of/IN
chief/NN
financial/JJ
officer/NN
,/,
who/WP
will/MD
be/VB
hired/VBN
from/IN
within/IN
the/DT
agency/NN
./.
IRS/NNP
Commissioner/NNP
Fred/NNP
T./NNP
Goldberg/NNP
said/VBD
the/DT
changes/NNS
are/VBP
intended/VBN
to/TO
bring/VB
``/``
accountability/NN
''/''
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the/DT
agency/NN
,/,
which/WDT
has/VBZ
an/DT
annual/JJ
budget/NN
of/IN
more/RBR
than/IN
$/$
5/CD
billion/CD
and/CC
collects/VBZ
about/IN
$/$
1/CD
trillion/CD
a/DT
year/NN
./.
``/``
My/PRP$
assessment/NN
and/CC
everyone/NN
's/POS
assessment/NN
is/VBZ
that/IN
we/PRP
do/VBP
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have/VB
the/DT
kinds/NNS
of/IN
information/NN
that/WDT
let/VBD
us/PRP
responsibly/RB
and/CC
effectively/RB
formulate/VB
and/CC
execute/VB
our/PRP$
budget/NN
,/,
''/''
Mr./NNP
Goldberg/NNP
said/VBD
./.
``/``
And/CC
we/PRP
do/VBP
n't/RB
have/VB
internal/JJ
controls/NNS
and/CC
discipline/NN
that/IN
we/PRP
need/VBP
to/TO
have/VB
to/TO
spend/VB
$/$
5/CD
billion/CD
properly/RB
./.
''/''
Mr./NNP
Goldberg/NNP
,/,
who/WP
took/VBD
over/IN
as/IN
head/NN
of/IN
the/DT
IRS/NNP
in/IN
July/NNP
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has/VBZ
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what/WP
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the/DT
inefficiency/NN
,/,
waste/NN
and/CC
lack/NN
of/IN
coordination/NN
among/IN
the/DT
branches/NNS
of/IN
the/DT
vast/JJ
federal/JJ
agency/NN
./.
The/DT
IRS/NNP
operates/VBZ
on/IN
a/DT
computer/NN
system/NN
designed/VBN
in/IN
1961/CD
,/,
which/WDT
it/PRP
has/VBZ
been/VBN
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to/TO
modernize/VB
for/IN
years/NNS
./.
And/CC
the/DT
agency/NN
,/,
which/WDT
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throughout/IN
fiscal/JJ
1989/CD
with/IN
a/DT
$/$
360/CD
million/CD
budget/NN
shortfall/NN
,/,
has/VBZ
been/VBN
under/IN
a/DT
hiring/VBG
freeze/NN
since/IN
last/JJ
fall/NN
./.
The/DT
new/JJ
commissioner/NN
says/VBZ
that/IN
closer/JJR
scrutiny/NN
of/IN
how/WRB
the/DT
agency/NN
uses/VBZ
its/PRP$
resources/NNS
will/MD
go/VB
a/DT
long/JJ
way/NN
toward/IN
enhancing/VBG
its/PRP$
ability/NN
to/TO
collect/VB
more/JJR
tax/NN
revenue/NN
./.
``/``
I/PRP
think/VBP
that/IN
you/PRP
will/MD
see/VB
a/DT
significant/JJ
improvement/NN
in/IN
the/DT
budget/NN
formulation/NN
and/CC
execution/NN
process/NN
which/WDT
,/,
in/IN
turn/NN
,/,
I/PRP
believe/VBP
will/MD
result/VB
in/IN
a/DT
significant/JJ
increase/NN
in/IN
revenue/NN
,/,
''/''
he/PRP
said/VBD
./.
The/DT
IRS/NNP
hopes/VBZ
to/TO
fill/VB
the/DT
new/JJ
positions/NNS
soon/RB
./.
Customarily/RB
,/,
it/PRP
would/MD
appoint/VB
career/NN
civil/JJ
servants/NNS
from/IN
within/IN
the/DT
agency/NN
,/,
but/CC
Mr./NNP
Goldberg/NNP
said/VBD
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to/TO
``/``
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the/DT
world/NN
''/''
for/IN
the/DT
chief/NN
information/NN
officer/NN
and/CC
the/DT
comptroller/NN
./.
Although/IN
the/DT
jobs/NNS
will/MD
probably/RB
pay/VB
between/IN
$/$
70,000/CD
and/CC
$/$
80,000/CD
a/DT
year/NN
,/,
IRS/NNP
officials/NNS
are/VBP
confident/JJ
that/IN
they/PRP
can/MD
attract/VB
top-notch/JJ
candidates/NNS
from/IN
the/DT
private/JJ
sector/NN
./.
``/``
You/PRP
're/VBP
telling/VBG
someone/NN
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can/MD
spend/VB
the/DT
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three/CD
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four/CD
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five/CD
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six/CD
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the/DT
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costly/JJ
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of/IN
an/DT
information/NN
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on/IN
the/DT
civil/JJ
side/NN
ever/RB
,/,
''/''
Mr./NNP
Goldberg/NNP
said/VBD
./.
``/``
On/IN
the/DT
comptroller/NN
side/NN
,/,
you/PRP
're/VBP
developing/VBG
and/CC
making/VBG
work/VB
financial/JJ
controls/NNS
governing/VBG
a/DT
$/$
6/CD
billion/CD
budget/NN
./.
''/''
When/WRB
Maj./NNP
Moises/NNP
Giroldi/NNP
,/,
the/DT
leader/NN
of/IN
the/DT
abortive/JJ
coup/NN
in/IN
Panama/NNP
,/,
was/VBD
buried/VBN
,/,
his/PRP$
body/NN
bore/VBD
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gunshot/NN
wounds/NNS
,/,
a/DT
cracked/VBN
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and/CC
broken/VBN
legs/NNS
and/CC
ribs/NNS
./.
They/PRP
were/VBD
the/DT
signature/NN
of/IN
his/PRP$
adversary/NN
,/,
Panamanian/JJ
leader/NN
Manuel/NNP
Antonio/NNP
Noriega/NNP
./.
The/DT
rebel/NN
officer/NN
's/POS
slow/JJ
and/CC
painful/JJ
death/NN
,/,
at/IN
the/DT
headquarters/NN
of/IN
Panama/NNP
's/POS
Battalion-2000/NN
squad/NN
,/,
was/VBD
personally/RB
supervised/VBN
by/IN
Gen./NNP
Noriega/NNP
,/,
says/VBZ
a/DT
U.S./NNP
official/NN
with/IN
access/NN
to/TO
intelligence/NN
reports/NNS
./.
Leaping/VBG
into/IN
rages/NNS
,/,
sinking/VBG
into/IN
bouts/NNS
of/IN
drunkenness/NN
and/CC
mistrust/NN
,/,
Mr./NNP
Noriega/NNP
has/VBZ
put/VBN
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death/NN
some/DT
70/CD
of/IN
his/PRP$
troops/NNS
involved/VBN
in/IN
the/DT
coup/NN
,/,
according/VBG
to/TO
U.S./NNP
officials/NNS
monitoring/VBG
crematoriums/NNS
and/CC
funeral/NN
parlors/NNS
in/IN
Panama/NNP
City/NNP
./.
He/PRP
is/VBZ
now/RB
changing/VBG
the/DT
place/NN
he/PRP
sleeps/VBZ
every/DT
night/NN
,/,
sometimes/RB
more/JJR
than/IN
once/RB
a/DT
night/NN
./.
His/PRP$
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often/RB
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by/IN
women/NNS
he/PRP
trusts/VBZ
--/:
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mistress/NN
,/,
Vicky/NNP
Amado/NNP
,/,
and/CC
her/PRP$
mother/NN
,/,
Norma/NNP
./.
And/CC
he/PRP
is/VBZ
collecting/VBG
the/DT
names/NNS
of/IN
those/DT
who/WP
telephoned/VBD
the/DT
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to/TO
congratulate/VB
them/PRP
during/IN
their/PRP$
brief/JJ
time/NN
in/IN
control/NN
of/IN
his/PRP$
headquarters/NNS
./.
More/JJR
enemies/NNS
to/TO
be/VB
dealt/VBN
with/IN
./.
In/IN
the/DT
two/CD
weeks/NNS
since/IN
the/DT
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,/,
which/WDT
the/DT
U.S./NNP
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Mr./NNP
Noriega/NNP
has/VBZ
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at/IN
his/PRP$
most/JJS
brutal/JJ
-/:
and/CC
efficient/JJ
-/:
in/IN
maintaining/VBG
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./.
Yet/RB
,/,
while/IN
the/DT
failed/VBN
coup/NN
is/VBZ
a/DT
major/JJ
U.S./NNP
foreign/JJ
policy/NN
embarrassment/NN
,/,
it/PRP
is/VBZ
merely/RB
the/DT
latest/JJS
chapter/NN
in/IN
a/DT
byzantine/JJ
relationship/NN
between/IN
Mr./NNP
Noriega/NNP
and/CC
Washington/NNP
that/WDT
stretches/VBZ
back/RB
three/CD
decades/NNS
./.
America/NNP
's/POS
war/NN
on/IN
the/DT
dictator/NN
over/IN
the/DT
past/JJ
two/CD
years/NNS
,/,
following/VBG
his/PRP$
indictment/NN
on/IN
drug/NN
charges/NNS
in/IN
February/NNP
1988/CD
,/,
is/VBZ
the/DT
legacy/NN
of/IN
that/DT
relationship/NN
./.
Before/IN
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policy/NN
set/VBD
out/IN
to/TO
destroy/VB
Noriega/NNP
,/,
it/PRP
helped/VBD
create/VB
him/PRP
out/IN
of/IN
the/DT
crucible/NN
of/IN
Panama/NNP
's/POS
long/JJ
history/NN
of/IN
conspirators/NNS
and/CC
pirates/NNS
./.
For/IN
most/JJS
of/IN
the/DT
past/JJ
30/CD
years/NNS
,/,
the/DT
marriage/NN
was/VBD
one/CD
of/IN
convenience/NN
./.
In/IN
1960/CD
,/,
for/IN
example/NN
,/,
when/WRB
Mr./NNP
Noriega/NNP
was/VBD
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a/DT
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at/IN
an/DT
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academy/NN
in/IN
Peru/NNP
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a/DT
spy-in-training/NN
for/IN
the/DT
U.S./NNP
Defense/NNP
Intelligence/NNP
Agency/NNP
,/,
he/PRP
was/VBD
detained/VBN
by/IN
Lima/NNP
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for/IN
allegedly/RB
raping/VBG
and/CC
savagely/RB
beating/VBG
a/DT
prostitute/NN
,/,
according/VBG
to/TO
a/DT
U.S./NNP
Embassy/NNP
cable/NN
from/IN
that/DT
period/NN
./.
The/DT
woman/NN
had/VBD
nearly/RB
died/VBN
./.
But/CC
U.S./NNP
intelligence/NN
,/,
rather/RB
than/IN
rein/VB
in/IN
or/CC
cut/VB
loose/JJ
its/PRP$
new/JJ
spy/NN
,/,
merely/RB
filed/VBD
the/DT
report/NN
away/RB
./.
Mr./NNP
Noriega/NNP
's/POS
tips/NNS
on/IN
emerging/VBG
leftists/NNS
at/IN
his/PRP$
school/NN
were/VBD
deemed/VBN
more/RBR
important/JJ
to/TO
U.S./NNP
interests/NNS
./.
From/IN
that/DT
point/NN
on/IN
,/,
the/DT
U.S./NNP
would/MD
make/VB
a/DT
practice/NN
of/IN
overlooking/VBG
the/DT
Panamanian/NNP
's/POS
misadventures/NNS
./.
The/DT
U.S./NNP
has/VBZ
befriended/VBN
and/CC
later/RB
turned/VBD
against/IN
many/JJ
dictators/NNS
,/,
but/CC
none/NN
quite/RB
so/RB
resourceful/JJ
./.
The/DT
55-year-old/JJ
Mr./NNP
Noriega/NNP
is/VBZ
n't/RB
as/RB
smooth/JJ
as/IN
the/DT
shah/NN
of/IN
Iran/NNP
,/,
as/RB
well-born/JJ
as/IN
Nicaragua/NNP
's/POS
Anastasio/NNP
Somoza/NNP
,/,
as/RB
imperial/JJ
as/IN
Ferdinand/NNP
Marcos/NNP
of/IN
the/DT
Philippines/NNP
or/CC
as/RB
bloody/JJ
as/IN
Haiti/NNP
's/POS
Baby/NNP
Doc/NNP
Duvalier/NNP
./.
Yet/CC
he/PRP
has/VBZ
proved/VBN
more/RBR
resilient/JJ
than/IN
any/DT
of/IN
them/PRP
./.
And/CC
out/IN
of/IN
necessity/NN
:/:
The/DT
U.S./NNP
can/MD
make/VB
mistakes/NNS
and/CC
still/RB
hope/VB
to/TO
remove/VB
him/PRP
from/IN
power/NN
,/,
but/CC
a/DT
single/JJ
error/NN
on/IN
his/PRP$
part/NN
could/MD
cost/VB
him/PRP
his/PRP$
life/NN
./.
``/``
The/DT
U.S./NNP
underestimated/VBD
Noriega/NNP
all/DT
along/IN
,/,
''/''
says/VBZ
Ambler/NNP
Moss/NNP
,/,
a/DT
former/JJ
Ambassador/NN
to/TO
Panama/NNP
./.
``/``
He/PRP
has/VBZ
mastered/VBN
the/DT
art/NN
of/IN
survival/NN
./.
''/''
In/IN
keeping/VBG
with/IN
America/NNP
's/POS
long/JJ
history/NN
of/IN
propping/VBG
up/IN
Mr./NNP
Noriega/NNP
,/,
recent/JJ
U.S./NNP
actions/NNS
have/VBP
extended/VBN
rather/RB
than/IN
shortened/VBN
his/PRP$
survival/NN
./.
Mr./NNP
Noriega/NNP
might/MD
have/VB
fallen/VBN
of/IN
his/PRP$
own/JJ
weight/NN
in/IN
1988/CD
because/IN
of/IN
Panama/NNP
's/POS
dire/JJ
economic/JJ
situation/NN
,/,
says/VBZ
Mr./NNP
Moss/NNP
,/,
but/CC
increasing/VBG
external/JJ
pressure/NN
has/VBZ
only/RB
given/VBN
him/PRP
additional/JJ
excuses/NNS
for/IN
repression/NN
,/,
and/CC
a/DT
scapegoat/NN
for/IN
his/PRP$
own/JJ
mismanagement/NN
./.
``/``
If/IN
the/DT
U.S./NNP
had/VBD
sat/VBN
back/RB
and/CC
done/VBN
nothing/NN
,/,
he/PRP
might/MD
not/RB
have/VB
made/VBN
it/PRP
through/IN
1988/CD
,/,
''/''
Mr./NNP
Moss/NNP
contends/VBZ
./.
Perhaps/RB
most/RBS
important/JJ
,/,
Mr./NNP
Noriega/NNP
's/POS
allies/NNS
have/VBP
intervened/VBN
to/TO
encourage/VB
--/:
in/IN
some/DT
cases/NNS
,/,
to/TO
demand/VB
--/:
that/IN
the/DT
dictator/NN
maintain/VB
his/PRP$
grip/NN
of/IN
the/DT
throne/NN
./.
One/CD
Colombian/JJ
drug/NN
boss/NN
,/,
upon/IN
hearing/NN
in/IN
1987/CD
that/IN
Gen./NNP
Noriega/NNP
was/VBD
negotiating/VBG
with/IN
the/DT
U.S./NNP
to/TO
abandon/VB
his/PRP$
command/NN
for/IN
a/DT
comfortable/JJ
exile/NN
,/,
sent/VBD
him/PRP
a/DT
hand-sized/JJ
mahogany/NN
coffin/NN
engraved/VBN
with/IN
his/PRP$
name/NN
./.
``/``
He/PRP
is/VBZ
cornered/JJ
,/,
''/''
says/VBZ
the/DT
Rev./NNP
Fernando/NNP
Guardia/NNP
,/,
who/WP
has/VBZ
led/VBN
Catholic/NNP
Church/NNP
opposition/NN
against/IN
Noriega/NNP
./.
``/``
The/DT
Americans/NNPS
have/VBP
left/VBN
him/PRP
without/IN
a/DT
way/NN
out/IN
./.
It/PRP
is/VBZ
easy/JJ
to/TO
fight/VB
when/WRB
you/PRP
do/VBP
n't/RB
have/VB
any/DT
other/JJ
option/NN
./.
''/''
His/PRP$
chief/NN
advantage/NN
in/IN
the/DT
fight/NN
:/:
his/PRP$
intimate/JJ
knowledge/NN
of/IN
American/JJ
ways/NNS
and/CC
weaknesses/NNS
./.
Mr./NNP
Noriega/NNP
often/RB
tells/VBZ
friends/NNS
that/IN
patience/NN
is/VBZ
the/DT
best/JJS
weapon/NN
against/IN
the/DT
gringos/NNS
,/,
who/WP
have/VBP
a/DT
short/JJ
attention/NN
span/NN
and/CC
little/JJ
stomach/NN
for/IN
lasting/VBG
confrontation/NN
./.
The/DT
U.S./NNP
discovered/VBD
the/DT
young/JJ
Tony/NNP
Noriega/NNP
in/IN
late/JJ
1959/CD
,/,
when/WRB
he/PRP
was/VBD
in/IN
his/PRP$
second/JJ
year/NN
at/IN
the/DT
Chorrillos/NNP
Military/NNP
Academy/NNP
in/IN
Lima/NNP
,/,
according/VBG
to/TO
former/JJ
U.S./NNP
intelligence/NN
officials/NNS
./.
The/DT
contact/NN
occurred/VBD
through/IN
Mr./NNP
Noriega/NNP
's/POS
half-brother/NN
,/,
a/DT
Panamanian/JJ
diplomat/NN
based/VBN
in/IN
Peru/NNP
named/VBN
Luis/NNP
Carlos/NNP
Noriega/NNP
Hurtado/NNP
./.
Luis/NNP
Carlos/NNP
,/,
knowing/VBG
that/IN
helping/VBG
the/DT
Americans/NNPS
could/MD
advance/VB
the/DT
career/NN
of/IN
any/DT
Panamanian/JJ
officer/NN
,/,
relayed/VBD
Tony/NNP
's/POS
reports/NNS
on/IN
the/DT
leftist/JJ
tendencies/NNS
he/PRP
observed/VBD
among/IN
his/PRP$
fellow/NN
students/NNS
and/CC
,/,
more/RBR
important/JJ
,/,
among/IN
his/PRP$
officers/NNS
and/CC
instructors/NNS
./.
A/DT
spy/NN
was/VBD
born/VBN
./.
It/PRP
was/VBD
a/DT
heady/JJ
experience/NN
for/IN
the/DT
pockmarked/VBN
and/CC
slightly/RB
built/VBN
Mr./NNP
Noriega/NNP
,/,
who/WP
was/VBD
known/VBN
to/TO
his/PRP$
friends/NNS
as/IN
Cara/NNP
la/DT
Pina/NNP
--/:
pineapple/NN
face/NN
./.
Born/VBN
the/DT
illegitimate/JJ
son/NN
of/IN
his/PRP$
father/NN
's/POS
maid/NN
,/,
he/PRP
was/VBD
raised/VBN
on/IN
the/DT
mean/JJ
streets/NNS
of/IN
the/DT
central/JJ
market/NN
district/NN
of/IN
Panama/NNP
City/NNP
./.
Tony/NNP
was/VBD
four/CD
years/NNS
older/JJR
than/IN
most/JJS
of/IN
his/PRP$
fellow/NN
cadets/NNS
,/,
and/CC
gained/VBD
admission/NN
to/TO
the/DT
academy/NN
because/IN
his/PRP$
brother/NN
had/VBD
falsified/VBN
his/PRP$
birth/NN
certificate/NN
./.
He/PRP
considered/VBD
himself/PRP
intellectually/RB
superior/JJ
to/TO
his/PRP$
Peruvian/JJ
peers/NNS
,/,
many/DT
of/IN
whom/WP
were/VBD
wayward/JJ
sons/NNS
sent/VBN
by/IN
their/PRP$
well-off/JJ
families/NNS
to/TO
the/DT
highly/RB
disciplined/VBN
,/,
French-modeled/JJ
academy/NN
as/IN
a/DT
sort/NN
of/IN
reform/NN
school/NN
./.
In/IN
his/PRP$
peaked/JJ
military/JJ
cap/NN
and/CC
neatly/RB
pressed/VBN
,/,
French-made/JJ
uniform/NN
,/,
Noriega/NNP
felt/VBD
more/RBR
respected/VBN
and/CC
powerful/JJ
than/IN
ever/RB
in/IN
his/PRP$
underprivileged/JJ
life/NN
,/,
friends/NNS
from/IN
the/DT
period/NN
say/VBP
./.
``/``
He/PRP
had/VBD
an/DT
elegant/JJ
uniform/NN
with/IN
gold/JJ
buttons/NNS
in/IN
a/DT
country/NN
where/WRB
there/EX
was/VBD
a/DT
cult/NN
of/IN
militarism/NN
,/,
where/WRB
officers/NNS
were/VBD
the/DT
elite/NN
with/IN
special/JJ
privileges/NNS
,/,
''/''
recalls/VBZ
Darien/NNP
Ayala/NNP
,/,
a/DT
fellow/NN
student/NN
in/IN
Peru/NNP
and/CC
a/DT
lifelong/JJ
friend/NN
./.
Mr./NNP
Noriega/NNP
's/POS
relationship/NN
to/TO
American/JJ
intelligence/NN
agencies/NNS
became/VBD
contractual/JJ
in/IN
either/DT
1966/CD
or/CC
1967/CD
,/,
intelligence/NN
officials/NNS
say/VBP
./.
His/PRP$
commanding/JJ
officer/NN
at/IN
the/DT
Chiriqui/NNP
Province/NNP
garrison/NN
,/,
Major/NNP
Omar/NNP
Torrijos/NNP
,/,
gave/VBD
him/PRP
an/DT
intriguing/JJ
assignment/NN
:/:
Mr./NNP
Noriega/NNP
would/MD
organize/VB
the/DT
province/NN
's/POS
first/JJ
intelligence/NN
service/NN
./.
The/DT
spy/NN
network/NN
would/MD
serve/VB
two/CD
clients/NNS
:/:
the/DT
Panamanian/JJ
government/NN
,/,
by/IN
monitoring/VBG
political/JJ
opponents/NNS
in/IN
the/DT
region/NN
,/,
and/CC
the/DT
U.S./NNP
,/,
by/IN
tracking/VBG
the/DT
growing/VBG
Communist/JJ
influence/NN
in/IN
the/DT
unions/NNS
organized/VBN
at/IN
United/NNP
Fruit/NNP
Co./NNP
's/POS
banana/NN
plantations/NNS
in/IN
Bocas/NNP
del/NNP
Toros/NNP
and/CC
Puerto/NNP
Armuelles/NNP
./.
United/NNP
Fruit/NNP
was/VBD
one/CD
of/IN
the/DT
two/CD
largest/JJS
contributors/NNS
to/TO
Panama/NNP
's/POS
national/JJ
income/NN
./.
Satisfying/VBG
its/PRP$
interests/NNS
was/VBD
a/DT
priority/NN
for/IN
any/DT
Panamanian/JJ
leader/NN
./.
Mr./NNP
Noriega/NNP
's/POS
initial/JJ
retainer/NN
was/VBD
only/RB
$/$
50/CD
to/TO
$/$
100/CD
a/DT
month/NN
,/,
plus/CC
occasional/JJ
gifts/NNS
of/IN
liquor/NN
or/CC
groceries/NNS
from/IN
the/DT
American/JJ
PX/NNP
,/,
a/DT
former/JJ
intelligence/NN
official/NN
says/VBZ
./.
It/PRP
was/VBD
modest/JJ
pay/NN
by/IN
American/JJ
standards/NNS
,/,
but/CC
a/DT
healthy/JJ
boost/NN
to/TO
his/PRP$
small/JJ
military/JJ
salary/NN
,/,
which/WDT
fellow/NN
officers/NNS
remember/VBP
as/IN
having/VBG
been/VBN
$/$
300/CD
to/TO
$/$
400/CD
monthly/RB
./.
``/``
He/PRP
did/VBD
it/PRP
very/RB
well/RB
,/,
''/''
recalls/VBZ
Boris/NNP
Martinez/NNP
,/,
a/DT
former/JJ
Panamanian/JJ
colonel/NN
who/WP
managed/VBD
Mr./NNP
Noriega/NNP
and/CC
his/PRP$
operation/NN
./.
``/``
He/PRP
started/VBD
building/VBG
the/DT
files/NNS
that/WDT
helped/VBD
him/PRP
gain/VB
power/NN
./.
''/''
A/DT
National/NNP
Guard/NNP
job/NN
assumed/VBN
by/IN
Capt./NNP
Noriega/NNP
in/IN
1964/CD
--/:
as/IN
chief/NN
of/IN
the/DT
transit/NN
police/NN
in/IN
David/NNP
City/NNP
,/,
capital/NN
of/IN
the/DT
Chiriqui/NNP
Province/NNP
--/:
was/VBD
tailor-made/JJ
for/IN
an/DT
aspiring/VBG
super-spy/NN
./.
By/IN
pressuring/VBG
taxi/NN
and/CC
bus/NN
drivers/NNS
who/WP
needed/VBD
licenses/NNS
,/,
he/PRP
gained/VBD
a/DT
ready/JJ
cache/NN
of/IN
information/NN
./.
He/PRP
knew/VBD
which/WDT
local/JJ
luminaries/NNS
had/VBD
been/VBN
caught/VBN
driving/VBG
drunk/NN
,/,
which/WDT
had/VBD
been/VBN
found/VBN
with/IN
their/PRP$
mistresses/NNS
./.
This/DT
proved/VBD
particularly/RB
valuable/JJ
to/TO
the/DT
Panamanian/JJ
government/NN
in/IN
1967/CD
,/,
when/WRB
union/NN
leaders/NNS
were/VBD
planning/VBG
a/DT
May/NNP
Day/NNP
march/NN
that/IN
the/DT
government/NN
feared/VBD
could/MD
turn/VB
violent/JJ
./.
Mr./NNP
Noriega/NNP
had/VBD
learned/VBN
that/IN
a/DT
local/JJ
union/NN
leader/NN
was/VBD
sleeping/VBG
with/IN
the/DT
wife/NN
of/IN
his/PRP$
deputy/NN
./.
So/IN
he/PRP
splashed/VBD
the/DT
information/NN
on/IN
handbills/NNS
that/IN
he/PRP
distributed/VBD
throughout/IN
the/DT
banana-exporting/JJ
city/NN
of/IN
Puerto/NNP
Armuelles/NNP
,/,
which/WDT
was/VBD
ruled/VBN
by/IN
United/NNP
Fruit/NNP
Co/NNP
./.
The/DT
campaign/NN
so/RB
divided/VBD
union/NN
leaders/NNS
that/IN
the/DT
government/NN
found/VBD
them/PRP
far/RB
easier/JJR
to/TO
control/VB
./.
``/``
It/PRP
was/VBD
like/IN
a/DT
play/NN
on/IN
Broadway/NNP
,/,
''/''
recalls/VBZ
Mr./NNP
Martinez/NNP
./.
``/``
Noriega/NNP
managed/VBD
the/DT
whole/JJ
thing/NN
./.
He/PRP
was/VBD
superb/JJ
./.
Noriega/NNP
was/VBD
an/DT
expert/NN
at/IN
bribing/VBG
and/CC
blackmailing/VBG
people/NNS
./.
''/''
During/IN
his/PRP$
years/NNS
in/IN
Chiriqui/NNP
,/,
however/RB
,/,
Mr./NNP
Noriega/NNP
also/RB
revealed/VBD
himself/PRP
as/IN
an/DT
officer/NN
as/RB
perverse/JJ
as/IN
he/PRP
was/VBD
ingenious/JJ
./.
Rodrigo/NNP
Miranda/NNP
,/,
a/DT
local/JJ
lawyer/NN
and/CC
human-rights/NN
monitor/NN
,/,
recalls/VBZ
an/DT
intoxicated/JJ
Noriega/NNP
visiting/VBG
prisoners/NNS
in/IN
their/PRP$
cells/NNS
at/IN
the/DT
5th/JJ
Zone/NNP
Garrison/NNP
headquarters/NN
in/IN
David/NNP
,/,
where/WRB
he/PRP
had/VBD
his/PRP$
offices/NNS
./.
Mr./NNP
Noriega/NNP
would/MD
order/VB
them/PRP
all/DT
to/TO
take/VB
off/IN
their/PRP$
clothes/NNS
and/CC
run/VB
around/IN
the/DT
courtyard/NN
naked/JJ
,/,
laughing/VBG
at/IN
them/PRP
and/CC
then/RB
retreating/VBG
to/TO
his/PRP$
office/NN
./.
``/``
People/NNS
started/VBD
wondering/VBG
if/IN
something/NN
was/VBD
wrong/JJ
with/IN
him/PRP
,/,
''/''
Mr./NNP
Miranda/NNP
recalls/VBZ
./.
But/CC
through/IN
this/DT
period/NN
,/,
so/RB
far/RB
as/IN
the/DT
U.S./NNP
military/NN
was/VBD
concerned/VBN
,/,
Mr./NNP
Noriega/NNP
was/VBD
a/DT
model/NN
recruit/NN
./.
He/PRP
signed/VBD
up/IN
for/IN
intelligence/NN
and/CC
counter-intelligence/JJ
training/NN
under/IN
American/JJ
officers/NNS
at/IN
Fort/NNP
Gulick/NNP
in/IN
Panama/NNP
in/IN
July/NNP
1967/CD
,/,
according/VBG
to/TO
a/DT
copy/NN
of/IN
a/DT
1983/CD
resume/NN
with/IN
details/NNS
Mr./NNP
Noriega/NNP
has/VBZ
since/IN
classified/VBN
as/IN
secret/JJ
./.
He/PRP
flew/VBD
to/TO
Fort/NNP
Bragg/NNP
,/,
N.C./NNP
,/,
in/IN
September/NNP
of/IN
that/DT
year/NN
for/IN
a/DT
course/NN
in/IN
psychological/JJ
operations/NNS
,/,
returning/VBG
to/TO
the/DT
School/NNP
of/IN
the/DT
Americas/NNPS
in/IN
Panama/NNP
for/IN
a/DT
two-month/JJ
course/NN
called/VBN
``/``
military/JJ
intelligence/NN
for/IN
officers/NNS
./.
''/''
Some/DT
American/JJ
officers/NNS
interpreted/VBD
his/PRP$
eagerness/NN
and/CC
studiousness/NN
as/IN
a/DT
sign/NN
of/IN
loyalty/NN
,/,
but/CC
they/PRP
did/VBD
so/RB
falsely/RB
./.
He/PRP
rose/VBD
to/TO
chief/NN
of/IN
intelligence/NN
in/IN
Panama/NNP
's/POS
socalled/VBN
G-2/NN
in/IN
1970/CD
after/IN
providing/VBG
populist/JJ
dictator/NN
Torrijos/NNP
the/DT
critical/JJ
support/NN
to/TO
defeat/VB
a/DT
coup/NN
attempt/NN
against/IN
him/PRP
a/DT
year/NN
earlier/RBR
./.
He/PRP
became/VBD
Gen./NNP
Torrijos/NNP
's/POS
inseparable/JJ
shadow/NN
,/,
and/CC
the/DT
holder/NN
of/IN
all/DT
Panama/NNP
's/POS
secrets/NNS
./.
Mr./NNP
Noriega/NNP
,/,
by/IN
now/RB
a/DT
lieutenant/NN
colonel/NN
,/,
expanded/VBD
his/PRP$
contacts/NNS
to/TO
include/VB
the/DT
Cubans/NNPS
--/:
not/RB
to/TO
mention/VB
the/DT
Israelis/NNPS
,/,
the/DT
Taiwanese/NNP
and/CC
any/DT
other/JJ
intelligence/NN
service/NN
that/WDT
came/VBD
knocking/VBG
./.
When/WRB
U.S./NNP
diplomats/NNS
complained/VBD
to/TO
the/DT
CIA/NNP
of/IN
Col./NNP
Noriega/NNP
's/POS
moonlighting/NN
,/,
intelligence/NN
experts/NNS
always/RB
insisted/VBD
that/DT
his/PRP$
allegiance/NN
was/VBD
first/RB
to/TO
the/DT
Americans/NNPS
./.
``/``
Early/RB
on/IN
in/IN
the/DT
State/NNP
Department/NNP
,/,
we/PRP
took/VBD
to/TO
calling/VBG
him/PRP
the/DT
rent-a-colonel/NN
,/,
in/IN
tribute/NN
to/TO
his/PRP$
ability/NN
to/TO
simultaneously/RB
milk/VB
the/DT
antagonistic/JJ
intelligence/NN
services/NNS
of/IN
Cuba/NNP
and/CC
the/DT
United/NNP
States/NNPS
,/,
''/''
recalls/VBZ
Francis/NNP
J./NNP
McNeil/NNP
,/,
who/WP
,/,
as/IN
deputy/JJ
assistant/JJ
secretary/NN
of/IN
state/NN
for/IN
inter-American/JJ
affairs/NNS
,/,
first/RB
ran/VBD
across/IN
reports/NNS
about/IN
Mr./NNP
Noriega/NNP
in/IN
1977/CD
./.
``/``
Some/DT
of/IN
us/PRP
wondered/VBD
how/WRB
our/PRP$
intelligence/NN
people/NNS
could/MD
put/VB
so/RB
much/JJ
stock/NN
in/IN
his/PRP$
information/NN
when/WRB
he/PRP
was/VBD
just/RB
as/RB
close/RB
to/TO
the/DT
Cubans/NNPS
./.
''/''
Even/RB
at/IN
this/DT
early/JJ
stage/NN
,/,
drugs/NNS
caused/VBD
additional/JJ
concerns/NNS
./.
During/IN
the/DT
Nixon/NNP
administration/NN
,/,
the/DT
Drug/NNP
Enforcement/NNP
Administration/NNP
became/VBD
dismayed/VBN
at/IN
the/DT
extent/NN
of/IN
the/DT
G-2/NN
's/POS
connections/NNS
to/TO
arrested/VBN
drug/NN
traffickers/NNS
./.
One/CD
DEA/NNP
agent/NN
drew/VBD
up/IN
a/DT
list/NN
of/IN
five/CD
options/NNS
for/IN
dealing/VBG
with/IN
Col./NNP
Noriega/NNP
,/,
one/CD
of/IN
which/WDT
was/VBD
assassination/NN
./.
The/DT
head/NN
of/IN
the/DT
DEA/NNP
at/IN
the/DT
time/NN
,/,
John/NNP
Ingersoll/NNP
,/,
scotched/VBD
the/DT
assassination/NN
plan/NN
./.
But/CC
he/PRP
did/VBD
fly/VB
to/TO
Panama/NNP
to/TO
scold/VB
dictator/NN
Torrijos/NNP
on/IN
the/DT
drug/NN
ties/NNS
of/IN
Panamanian/JJ
officials/NNS
,/,
including/VBG
Mr./NNP
Noriega/NNP
./.
Mr./NNP
Ingersoll/NNP
later/RB
recalled/VBD
that/IN
Gen./NNP
Torrijos/NNP
seemed/VBD
afraid/JJ
to/TO
act/VB
on/IN
the/DT
concerns/NNS
of/IN
the/DT
U.S/NNP
./.
``/``
Everybody/NN
was/VBD
afraid/JJ
of/IN
him/PRP
,/,
''/''
Mr./NNP
Ingersoll/NNP
says/VBZ
./.
Mr./NNP
Noriega/NNP
became/VBD
an/DT
even/RB
greater/JJR
threat/NN
in/IN
1976/CD
,/,
when/WRB
U.S./NNP
intelligence/NN
services/NNS
discovered/VBD
that/IN
he/PRP
had/VBD
been/VBN
buying/VBG
recordings/NNS
of/IN
electronically/RB
monitored/VBN
conversations/NNS
from/IN
three/CD
sergeants/NNS
working/VBG
for/IN
the/DT
U.S./NNP
Army/NNP
's/POS
470th/JJ
Military/NNP
Intelligence/NNP
Group/NNP
./.
The/DT
tapes/NNS
included/VBD
wiretaps/NNS
of/IN
Gen./NNP
Torrijos/NNP
's/POS
own/JJ
phone/NN
,/,
according/VBG
to/TO
American/JJ
intelligence/NN
officials/NNS
./.
``/``
We/PRP
caught/VBD
him/PRP
with/IN
his/PRP$
hands/NNS
on/IN
our/PRP$
cookie/NN
jar/NN
,/,
''/''
says/VBZ
former/JJ
CIA/NNP
Director/NNP
Stansfield/NNP
Turner/NNP
./.
For/IN
the/DT
first/JJ
time/NN
,/,
the/DT
U.S./NNP
considered/VBD
cutting/VBG
Mr./NNP
Noriega/NNP
from/IN
its/PRP$
intelligence/NN
payroll/NN
--/:
and/CC
the/DT
deliberations/NNS
were/VBD
intense/JJ
,/,
Mr./NNP
Turner/NNP
says/VBZ
./.
``/``
In/IN
the/DT
world/NN
of/IN
intelligence/NN
,/,
if/IN
you/PRP
want/VBP
to/TO
get/VB
information/NN
,/,
you/PRP
get/VBP
it/PRP
from/IN
seedy/JJ
characters/NNS
./.
The/DT
question/NN
is/VBZ
how/WRB
much/RB
you/PRP
get/VBP
tied/VBN
in/IN
with/IN
seedy/JJ
characters/NNS
so/IN
they/PRP
can/MD
extort/VB
you/PRP
./.
''/''
Intelligence/NN
officials/NNS
to/TO
this/DT
day/NN
worry/VBP
whether/IN
Mr./NNP
Noriega/NNP
sold/VBD
sensitive/JJ
information/NN
on/IN
the/DT
recordings/NNS
to/TO
the/DT
Cubans/NNPS
or/CC
others/NNS
./.
Mr./NNP
Turner/NNP
was/VBD
troubled/VBN
enough/RB
to/TO
cancel/VB
the/DT
U.S./NNP
contract/NN
with/IN
the/DT
rent-a-colonel/NN
at/IN
the/DT
beginning/NN
of/IN
the/DT
Carter/NNP
administration/NN
./.
The/DT
U.S./NNP
soon/RB
found/VBD
new/JJ
cause/NN
for/IN
concern/NN
:/:
gun-running/NN
./.
Prosecutors/NNS
in/IN
Southern/NNP
Florida/NNP
indicted/VBD
five/CD
Panamanians/NNPS
on/IN
charges/NNS
of/IN
illegally/RB
running/VBG
arms/NNS
to/TO
Sandinista/NNP
rebels/NNS
trying/VBG
to/TO
overthrow/VB
the/DT
Nicaraguan/JJ
government/NN
of/IN
Mr./NNP
Somoza/NNP
./.
They/PRP
included/VBD
one/CD
of/IN
Mr./NNP
Noriega/NNP
's/POS
closest/JJS
friends/NNS
and/CC
business/NN
partners/NNS
,/,
Carlos/NNP
Wittgreen/NNP
./.
And/CC
the/DT
investigators/NNS
were/VBD
quickly/RB
closing/VBG
in/IN
on/IN
Mr./NNP
Noriega/NNP
himself/PRP
./.
At/IN
the/DT
time/NN
,/,
though/RB
,/,
in/IN
1979/CD
,/,
the/DT
U.S./NNP
was/VBD
once/RB
again/RB
flirting/VBG
with/IN
its/PRP$
longtime/NN
Latin/NNP
American/NNP
spy/NN
./.
Mr./NNP
Noriega/NNP
made/VBD
plans/NNS
to/TO
fly/VB
to/TO
Washington/NNP
for/IN
a/DT
meeting/NN
with/IN
his/PRP$
counterpart/NN
at/IN
the/DT
Pentagon/NNP
./.
Dade/NNP
County/NNP
and/CC
federal/JJ
authorities/NNS
,/,
learning/VBG
that/IN
he/PRP
intended/VBD
to/TO
fly/VB
through/IN
Miami/NNP
,/,
made/VBN
plans/NNS
to/TO
arrest/VB
him/PRP
on/IN
the/DT
gun-running/JJ
charges/NNS
as/RB
soon/RB
as/IN
he/PRP
hit/VBD
U.S./NNP
soil/NN
./.
It/PRP
was/VBD
a/DT
Friday/NNP
in/IN
June/NNP
./.
The/DT
Pentagon/NNP
foiled/VBD
the/DT
plan/NN
./.
According/VBG
to/TO
military/JJ
officers/NNS
at/IN
the/DT
time/NN
,/,
word/NN
was/VBD
passed/VBN
to/TO
Mr./NNP
Noriega/NNP
by/IN
his/PRP$
American/JJ
hosts/NNS
that/IN
the/DT
police/NN
would/MD
be/VB
waiting/VBG
./.
On/IN
Monday/NNP
,/,
U.S./NNP
officials/NNS
received/VBD
a/DT
routine/JJ
,/,
unclassified/JJ
message/NN
from/IN
the/DT
military/JJ
group/NN
commander/NN
in/IN
Panama/NNP
./.
``/``
Due/JJ
to/TO
health/NN
reasons/NNS
,/,
Lt./NNP
Col./NNP
Noriega/NNP
has/VBZ
elected/VBN
to/TO
postpone/VB
his/PRP$
visit/NN
to/TO
Washington/NNP
,/,
''/''
it/PRP
read/VBD
./.
Prosecutors/NNS
in/IN
Miami/NNP
received/VBD
yet/RB
another/DT
setback/NN
./.
Their/PRP$
original/JJ
indictment/NN
against/IN
Mr./NNP
Wittgreen/NNP
,/,
the/DT
friend/NN
of/IN
Mr./NNP
Noriega/NNP
,/,
and/CC
the/DT
other/JJ
four/CD
was/VBD
dismissed/VBN
on/IN
a/DT
technicality/NN
./.
But/CC
now/RB
,/,
along/IN
with/IN
reindicting/VBG
Mr./NNP
Noriega/NNP
's/POS
pal/NN
,/,
they/PRP
intended/VBD
to/TO
charge/VB
Mr./NNP
Noriega/NNP
himself/PRP
,/,
on/IN
allegations/NNS
that/IN
he/PRP
was/VBD
involved/VBN
in/IN
the/DT
illegal/JJ
trading/NN
of/IN
some/DT
$/$
2/CD
million/CD
in/IN
arms/NNS
./.
In/IN
January/NNP
1980/CD
,/,
Jerome/NNP
Sanford/NNP
,/,
as/IN
assistant/JJ
U.S./NNP
attorney/NN
,/,
was/VBD
summoned/VBN
to/TO
a/DT
meeting/NN
with/IN
a/DT
Federal/NNP
Bureau/NNP
of/IN
Investigation/NNP
agent/NN
assigned/VBN
to/TO
the/DT
Bureau/NNP
of/IN
Alcohol/NNP
,/,
Tobacco/NNP
and/CC
Firearms/NNPS
in/IN
Miami/NNP
./.
Panamanian/JJ
dictator/NN
Torrijos/NNP
,/,
he/PRP
was/VBD
told/VBN
,/,
had/VBD
granted/VBN
the/DT
shah/NN
of/IN
Iran/NNP
asylum/NN
in/IN
Panama/NNP
as/IN
a/DT
favor/NN
to/TO
Washington/NNP
./.
Mr./NNP
Sanford/NNP
was/VBD
told/VBN
Mr./NNP
Noriega/NNP
's/POS
friend/NN
,/,
Mr./NNP
Wittgreen/NNP
,/,
would/MD
be/VB
handling/VBG
the/DT
shah/NN
's/POS
security/NN
./.
It/PRP
would/MD
n't/RB
be/VB
a/DT
good/JJ
idea/NN
to/TO
indict/VB
him/PRP
--/:
much/RB
less/JJR
Mr./NNP
Noriega/NNP
,/,
the/DT
prosecutor/NN
was/VBD
told/VBN
./.
After/IN
prodding/VBG
from/IN
Mr./NNP
Sanford/NNP
,/,
U.S./NNP
Attorney/NNP
Jack/NNP
Eskenazi/NNP
pleaded/VBD
with/IN
Justice/NNP
Department/NNP
officials/NNS
in/IN
Washington/NNP
to/TO
let/VB
the/DT
indictment/NN
proceed/VB
./.
``/``
Unfortunately/RB
,/,
''/''
Mr./NNP
Eskenazi/NNP
wrote/VBD
in/IN
a/DT
letter/NN
,/,
``/``
those/DT
of/IN
us/PRP
in/IN
law/NN
enforcement/NN
in/IN
Miami/NNP
find/VBP
ourselves/PRP
frequently/RB
attempting/VBG
to/TO
enforce/VB
the/DT
laws/NNS
of/IN
the/DT
United/NNP
States/NNPS
but/CC
simultaneously/RB
being/VBG
caught/VBN
between/IN
foreign/JJ
policy/NN
considerations/NNS
over/IN
which/WDT
we/PRP
have/VBP
no/DT
control/NN
./.
''/''
The/DT
letter/NN
,/,
along/IN
with/IN
a/DT
detailed/VBN
prosecution/NN
memo/NN
,/,
sat/VBD
on/IN
the/DT
desks/NNS
of/IN
Justice/NNP
officials/NNS
for/IN
months/NNS
before/IN
the/DT
case/NN
died/VBD
a/DT
quiet/JJ
death/NN
./.
``/``
I/PRP
think/VBP
if/IN
we/PRP
had/VBD
been/VBN
allowed/VBN
to/TO
go/VB
ahead/RB
then/RB
we/PRP
would/MD
n't/RB
have/VB
the/DT
problems/NNS
we/PRP
have/VBP
now/RB
,/,
''/''
Mr./NNP
Sanford/NNP
says/VBZ
./.
``/``
If/IN
he/PRP
had/VBD
been/VBN
found/VBN
guilty/JJ
,/,
we/PRP
could/MD
have/VB
stopped/VBN
him/PRP
./.
''/''
In/IN
August/NNP
1983/CD
,/,
Mr./NNP
Noriega/NNP
took/VBD
over/IN
as/IN
General/NNP
and/CC
de-facto/JJ
dictator/NN
of/IN
Panama/NNP
,/,
having/VBG
maneuvered/VBN
his/PRP$
way/NN
to/TO
the/DT
top/NN
only/RB
two/CD
years/NNS
after/IN
the/DT
mysterious/JJ
death/NN
in/IN
a/DT
plane/NN
crash/NN
of/IN
his/PRP$
old/JJ
boss/NN
Omar/NNP
Torrijos/NNP
./.
Soon/RB
,/,
the/DT
military/NN
became/VBD
a/DT
veritable/JJ
mafia/NN
controlling/VBG
legal/JJ
and/CC
illegal/JJ
businesses/NNS
./.
The/DT
Reagan/NNP
administration/NN
also/RB
put/VBD
Mr./NNP
Noriega/NNP
's/POS
G-2/NN
back/NN
on/IN
the/DT
U.S./NNP
payroll/NN
./.
Payments/NNS
averaged/VBD
nearly/RB
$/$
200,000/CD
a/DT
year/NN
from/IN
the/DT
U.S./NNP
Defense/NNP
Intelligence/NNP
Agency/NNP
and/CC
the/DT
CIA/NNP
./.
Although/IN
working/VBG
for/IN
U.S./NNP
intelligence/NN
,/,
Mr./NNP
Noriega/NNP
was/VBD
hardly/RB
helping/VBG
the/DT
U.S./NNP
exclusively/RB
./.
During/IN
the/DT
Reagan/NNP
years/NNS
he/PRP
expanded/VBD
his/PRP$
business/NN
and/CC
intelligence/NN
contacts/NNS
with/IN
the/DT
Cubans/NNPS
and/CC
the/DT
Sandinistas/NNPS
./.
He/PRP
allegedly/RB
entered/VBD
into/IN
Panama/NNP
's/POS
first/JJ
formal/JJ
business/NN
arrangement/NN
with/IN
Colombian/JJ
drug/NN
bosses/NNS
,/,
according/VBG
to/TO
Floyd/NNP
Carlton/NNP
,/,
a/DT
pilot/NN
who/WP
once/RB
worked/VBD
for/IN
Mr./NNP
Noriega/NNP
and/CC
who/WP
testified/VBD
before/IN
the/DT
U.S./NNP
grand/JJ
jury/NN
in/IN
Miami/NNP
that/WDT
would/MD
ultimately/RB
indict/VB
the/DT
Panamanian/NNP
on/IN
drug/NN
charges/NNS
./.
But/CC
Mr./NNP
Noriega/NNP
was/VBD
convinced/VBN
the/DT
Reagan/NNP
White/NNP
House/NNP
would/MD
n't/RB
act/VB
against/IN
him/PRP
,/,
recalls/VBZ
his/PRP$
close/JJ
ally/NN
Jose/NNP
Blandon/NNP
,/,
because/IN
he/PRP
had/VBD
an/DT
insurance/NN
policy/NN
:/:
his/PRP$
involvement/NN
with/IN
the/DT
Contra/NNP
rebels/NNS
in/IN
Nicaragua/NNP
./.
Mr./NNP
Blandon/NNP
says/VBZ
the/DT
general/NN
allowed/VBD
the/DT
Contras/NNPS
to/TO
set/VB
up/IN
a/DT
secret/JJ
training/NN
center/NN
in/IN
Panama/NNP
./.
Mr./NNP
Noriega/NNP
also/RB
conveyed/VBD
intelligence/NN
from/IN
his/PRP$
spy/NN
operation/NN
inside/IN
the/DT
Nicaraguan/JJ
capital/NN
of/IN
Managua/NNP
./.
And/CC
on/IN
at/IN
least/JJS
one/CD
occasion/NN
,/,
in/IN
the/DT
spring/NN
of/IN
1985/CD
,/,
he/PRP
helped/VBD
arrange/VB
a/DT
sabotage/NN
attack/NN
on/IN
a/DT
Sandinista/NNP
arsenal/NN
in/IN
Nicaragua/NNP
./.
Although/IN
,/,
his/PRP$
help/NN
for/IN
the/DT
Contra/NNP
cause/NN
was/VBD
limited/VBN
,/,
it/PRP
was/VBD
enough/JJ
to/TO
win/VB
him/PRP
important/JJ
protectors/NNS
in/IN
the/DT
Reagan/NNP
administration/NN
,/,
says/VBZ
Sen./NNP
Patrick/NNP
Leahy/NNP
,/,
a/DT
Vermont/NNP
Democrat/NNP
who/WP
then/RB
served/VBD
on/IN
the/DT
Senate/NNP
Intelligence/NNP
Committee/NNP
./.
``/``
Noriega/NNP
played/VBD
U.S./NNP
intelligence/NN
agencies/NNS
and/CC
the/DT
U.S./NNP
government/NN
like/IN
a/DT
violin/NN
,/,
''/''
he/PRP
says/VBZ
./.
An/DT
incident/NN
in/IN
1984/CD
suggested/VBD
one/CD
additional/JJ
means/NNS
by/IN
which/WDT
Mr./NNP
Noriega/NNP
might/MD
have/VB
maintained/VBN
such/JJ
influence/NN
with/IN
Washington/NNP
--/:
by/IN
compromising/VBG
U.S./NNP
officials/NNS
./.
Curtin/NNP
Windsor/NNP
,/,
then/RB
the/DT
ambassador/NN
to/TO
Costa/NNP
Rica/NNP
,/,
recalls/VBZ
being/VBG
invited/VBN
to/TO
Panama/NNP
by/IN
Mr./NNP
Noriega/NNP
's/POS
brother/NN
Luis/NNP
Carlos/NNP
for/IN
a/DT
weekend/NN
of/IN
deep/JJ
sea/NN
fishing/NN
and/CC
``/``
quiet/JJ
,/,
serious/JJ
conversation/NN
''/''
on/IN
the/DT
Aswara/NNP
Peninsula/NNP
./.
Mr./NNP
Windsor/NNP
notified/VBD
Everett/NNP
E./NNP
Briggs/NNP
,/,
the/DT
U.S./NNP
ambassador/NN
to/TO
Panama/NNP
,/,
of/IN
the/DT
invitation/NN
./.
``/``
Briggs/NNP
screamed/VBD
,/,
''/''
Mr./NNP
Windsor/NNP
recalls/VBZ
./.
He/PRP
says/VBZ
Mr./NNP
Briggs/NNP
told/VBD
him/PRP
he/PRP
was/VBD
being/VBG
set/VBN
up/IN
for/IN
a/DT
``/``
honey/NN
trap/NN
,/,
''/''
in/IN
which/WDT
Mr./NNP
Noriega/NNP
would/MD
try/VB
to/TO
involve/VB
him/PRP
in/IN
an/DT
orgy/NN
and/CC
then/RB
record/VB
the/DT
event/NN
``/``
with/IN
sound/NN
and/CC
video/NN
./.
''/''
Mr./NNP
Briggs/NNP
,/,
on/IN
vacation/NN
after/IN
resigning/VBG
his/PRP$
position/NN
at/IN
the/DT
National/NNP
Security/NNP
Council/NNP
,/,
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
As/IN
Mr./NNP
Noriega/NNP
's/POS
political/JJ
troubles/NNS
grew/VBD
,/,
so/RB
did/VBD
his/PRP$
offers/NNS
of/IN
assistance/NN
to/TO
the/DT
Contras/NNPS
,/,
an/DT
apparent/JJ
attempt/NN
to/TO
curry/VB
more/JJR
favor/NN
in/IN
Washington/NNP
./.
For/IN
instance/NN
,/,
he/PRP
helped/VBD
steal/VB
the/DT
May/NNP
1984/CD
Panamanian/JJ
elections/NNS
for/IN
the/DT
ruling/VBG
party/NN
./.
But/CC
just/RB
one/CD
month/NN
later/RB
,/,
he/PRP
also/RB
contributed/VBD
$/$
100,000/CD
to/TO
a/DT
Contra/NNP
leader/NN
,/,
according/VBG
to/TO
documents/NNS
released/VBN
for/IN
Oliver/NNP
North/NNP
's/POS
criminal/JJ
trial/NN
in/IN
Washington/NNP
,/,
D.C/NNP
./.
Yet/RB
,/,
his/PRP$
political/JJ
setbacks/NNS
mounted/VBD
./.
Mr./NNP
Noriega/NNP
was/VBD
accused/VBN
of/IN
ordering/VBG
in/IN
1985/CD
the/DT
beheading/NN
of/IN
Hugo/NNP
Spadafora/NNP
,/,
his/PRP$
most/JJS
outspoken/JJ
political/JJ
opponent/NN
and/CC
the/DT
first/JJ
man/NN
to/TO
publicly/RB
finger/VB
Mr./NNP
Noriega/NNP
on/IN
drug/NN
trafficking/NN
charges/NNS
./.
He/PRP
then/RB
ousted/VBD
President/NNP
Nicholas/NNP
Ardito/NNP
Barletta/NNP
,/,
a/DT
former/JJ
World/NNP
Bank/NNP
official/NN
with/IN
close/JJ
ties/NNS
to/TO
the/DT
U.S./NNP
,/,
after/IN
Mr./NNP
Barletta/NNP
tried/VBD
to/TO
create/VB
a/DT
commission/NN
to/TO
investigate/VB
the/DT
murder/NN
./.
And/CC
,/,
all/PDT
the/DT
while/NN
,/,
Panama/NNP
's/POS
debt/NN
problems/NNS
continued/VBD
to/TO
grow/VB
./.
Mr./NNP
Noriega/NNP
was/VBD
growing/VBG
desperate/JJ
./.
In/IN
late/JJ
1986/CD
,/,
he/PRP
made/VBD
an/DT
offer/NN
he/PRP
thought/VBD
the/DT
U.S./NNP
could/MD
n't/RB
refuse/VB
./.
As/IN
recounted/VBN
in/IN
a/DT
stipulation/NN
that/WDT
summarized/VBD
government/NN
documents/NNS
released/VBN
for/IN
the/DT
North/NNP
trial/NN
,/,
Mr./NNP
Noriega/NNP
offered/VBD
to/TO
assassinate/VB
the/DT
Sandinista/NNP
leadership/NN
in/IN
exchange/NN
``/``
for/IN
a/DT
promise/NN
to/TO
help/VB
clean/VB
up/IN
Noriega/NNP
's/POS
image/NN
and/CC
a/DT
commitment/NN
to/TO
lift/VB
the/DT
U.S/NNP
./.
ban/NN
on/IN
military/JJ
sales/NNS
to/TO
the/DT
Panamanian/NNP
Defense/NNP
Forces/NNPS
./.
''/''
``/``
North/NNP
,/,
''/''
the/DT
document/NN
went/VBD
on/IN
,/,
referring/VBG
to/TO
Oliver/NNP
North/NNP
,/,
``/``
has/VBZ
told/VBN
Noriega/NNP
's/POS
representative/NN
that/IN
U.S./NNP
law/NN
forbade/VBD
such/JJ
actions/NNS
./.
The/DT
representative/NN
responded/VBD
that/IN
Noriega/NNP
had/VBD
numerous/JJ
assets/NNS
in/IN
place/NN
in/IN
Nicaragua/NNP
and/CC
could/MD
accomplish/VB
many/JJ
essential/JJ
things/NNS
,/,
just/RB
as/IN
Noriega/NNP
had/VBD
helped/VBN
{/(
the/DT
U.S/NNP
./.
the/DT
previous/JJ
year/NN
in/IN
blowing/VBG
up/IN
a/DT
Sandinista/NNP
arsenal/NN
./.
''/''
Col./NNP
North/NNP
conveyed/VBD
the/DT
request/NN
to/TO
his/PRP$
superiors/NNS
and/CC
to/TO
Assistant/NNP
Secretary/NNP
of/IN
State/NNP
Elliot/NNP
Abrams/NNP
,/,
who/WP
relayed/VBD
it/PRP
to/TO
Secretary/NNP
of/IN
State/NNP
George/NNP
Shultz/NNP
./.
Mr./NNP
Noriega/NNP
's/POS
proposal/NN
was/VBD
turned/VBN
down/IN
./.
And/CC
Mr./NNP
Shultz/NNP
curtly/RB
told/VBD
Mr./NNP
Abrams/NNP
that/IN
the/DT
general/NN
should/MD
be/VB
told/VBN
that/IN
only/RB
he/PRP
could/MD
repair/VB
his/PRP$
tarnished/VBN
image/NN
./.
The/DT
end/NN
of/IN
the/DT
marriage/NN
was/VBD
at/IN
hand/NN
./.
Within/IN
weeks/NNS
the/DT
unfolding/VBG
Iran-Contra/NNP
scandal/NN
took/VBD
away/RB
Mr./NNP
Noriega/NNP
's/POS
insurance/NN
policy/NN
./.
The/DT
death/NN
of/IN
CIA/NNP
Director/NNP
William/NNP
Casey/NNP
and/CC
resignation/NN
of/IN
Oliver/NNP
North/NNP
allowed/VBD
anti-Noriega/JJ
political/JJ
forces/NNS
to/TO
gain/VB
influence/NN
./.
Public/JJ
protests/NNS
against/IN
him/PRP
were/VBD
triggered/VBN
in/IN
June/NNP
1987/CD
due/JJ
to/TO
charges/NNS
by/IN
Diaz/NNP
Herrera/NNP
,/,
his/PRP$
former/JJ
chief/NN
of/IN
staff/NN
,/,
that/IN
Mr./NNP
Noriega/NNP
had/VBD
stolen/VBN
the/DT
1984/CD
election/NN
and/CC
had/VBD
ordered/VBN
the/DT
killing/NN
of/IN
Messrs./NNP
Spadafora/NNP
and/CC
Torrijos/NNP
./.
Few/JJ
American/JJ
officials/NNS
were/VBD
willing/VBG
any/DT
longer/RB
to/TO
defend/VB
him/PRP
./.
Lawyers/NNS
in/IN
Miami/NNP
--/:
this/DT
time/NN
working/VBG
virtually/RB
without/IN
impediment/NN
--/:
prepared/VBD
to/TO
have/VB
him/PRP
indicted/VBN
on/IN
drug/NN
charges/NNS
in/IN
February/NNP
1988/CD
./.
During/IN
negotiations/NNS
with/IN
American/JJ
officials/NNS
in/IN
May/NNP
1988/CD
over/IN
proposals/NNS
to/TO
drop/VB
the/DT
U.S./NNP
indictments/NNS
in/IN
exchange/NN
for/IN
his/PRP$
resignation/NN
,/,
Mr./NNP
Noriega/NNP
often/RB
asked/VBD
almost/RB
plaintively/RB
how/WRB
the/DT
Americans/NNPS
,/,
whom/WP
he/PRP
had/VBD
helped/VBN
for/IN
so/RB
many/JJ
years/NNS
,/,
could/MD
turn/VB
against/IN
him/PRP
./.
Now/RB
,/,
neither/CC
side/NN
--/:
the/DT
U.S./NNP
nor/CC
Mr./NNP
Noriega/NNP
--/:
has/VBZ
an/DT
easy/JJ
out/NN
./.
President/NNP
Bush/NNP
has/VBZ
sworn/VBN
to/TO
bring/VB
him/PRP
to/TO
justice/NN
./.
Mr./NNP
Noriega/NNP
believes/VBZ
he/PRP
has/VBZ
n't/RB
any/DT
alternative/NN
but/CC
to/TO
continue/VB
clutching/VBG
to/TO
power/NN
./.
It/PRP
is/VBZ
a/DT
knock-out/JJ
battle/NN
--/:
perhaps/RB
to/TO
the/DT
death/NN
./.
In/IN
the/DT
end/NN
,/,
is/VBZ
Mr./NNP
Noriega/NNP
the/DT
political/JJ
equivalent/NN
of/IN
Frankenstein/NNP
's/POS
monster/NN
,/,
created/VBN
by/IN
a/DT
well-intentioned/JJ
but/CC
misguided/JJ
foreign/JJ
power/NN
?/.
Not/RB
quite/RB
,/,
Sen./NNP
Leahy/NNP
contends/VBZ
./.
``/``
For/IN
short-term/JJ
gains/NNS
,/,
people/NNS
were/VBD
willing/JJ
to/TO
put/VB
up/IN
with/IN
him/PRP
./.
That/DT
allowed/VB
him/PRP
to/TO
get/VB
stronger/JJR
and/CC
stronger/JJR
,/,
''/''
he/PRP
says/VBZ
./.
``/``
I/PRP
do/VBP
n't/RB
think/VB
we/PRP
created/VBD
him/PRP
as/RB
much/RB
as/IN
we/PRP
fed/VBD
him/PRP
,/,
nurtured/VBD
him/PRP
and/CC
let/VB
him/PRP
grow/VB
up/IN
to/TO
be/VB
big/JJ
and/CC
strong/JJ
./.
''/''
UPJOHN/NNP
Co./NNP
reported/VBD
that/IN
third-quarter/NN
net/JJ
income/NN
rose/VBD
to/TO
$/$
96/CD
million/CD
,/,
or/CC
52/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
89.6/CD
million/CD
,/,
or/CC
49/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Yesterday/NN
's/POS
edition/NN
provided/VBD
analysts/NNS
'/POS
estimates/NNS
for/IN
the/DT
company/NN
when/WRB
actual/JJ
earnings/NNS
were/VBD
available/JJ
./.
Industrial/JJ
production/NN
declined/VBD
0.1/CD
%/NN
in/IN
September/NNP
,/,
reinforcing/VBG
other/JJ
signs/NNS
that/IN
the/DT
manufacturing/VBG
sector/NN
continues/VBZ
its/PRP$
slowing/VBG
trend/NN
./.
The/DT
Federal/NNP
Reserve/NNP
Board/NNP
said/VBD
output/NN
of/IN
the/DT
nation/NN
's/POS
factories/NNS
,/,
mines/NNS
and/CC
utilities/NNS
expanded/VBD
at/IN
an/DT
annual/JJ
rate/NN
of/IN
1.3/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
substantially/RB
slower/JJR
than/IN
the/DT
3.3/CD
%/NN
annual/JJ
rate/NN
in/IN
the/DT
second/JJ
quarter/NN
./.
``/``
Capital/NN
spending/NN
and/CC
exports/NNS
,/,
which/WDT
have/VBP
been/VBN
the/DT
driving/VBG
force/NN
in/IN
this/DT
expansion/NN
,/,
are/VBP
showing/VBG
clear/JJ
signs/NNS
of/IN
having/VBG
the/DT
steam/NN
taken/VBN
out/IN
of/IN
them/PRP
,/,
''/''
said/VBD
Robert/NNP
Dederick/NNP
,/,
economist/NN
for/IN
Northern/NNP
Trust/NNP
Co./NNP
in/IN
Chicago/NNP
./.
The/DT
new/JJ
reports/NNS
of/IN
sluggishness/NN
,/,
which/WDT
were/VBD
foreshadowed/VBN
by/IN
an/DT
earlier/JJR
Labor/NNP
Department/NNP
report/NN
that/IN
manufacturing/VBG
payrolls/NNS
dropped/VBD
by/IN
105,000/CD
in/IN
September/NNP
,/,
give/VBP
the/DT
Fed/NNP
another/DT
reason/NN
to/TO
further/RB
ease/VB
its/PRP$
grip/NN
on/IN
credit/NN
and/CC
lower/VB
interest/NN
rates/NNS
./.
``/``
They/PRP
need/VBP
to/TO
do/VB
something/NN
about/IN
this/DT
,/,
''/''
said/VBD
Maury/NNP
Harris/NNP
,/,
economist/NN
at/IN
PaineWebber/NNP
Group/NNP
Inc/NNP
./.
The/DT
Fed/NNP
also/RB
said/VBD
U.S./NNP
industry/NN
operated/VBD
at/IN
83.6/CD
%/NN
of/IN
capacity/NN
last/JJ
month/NN
,/,
down/IN
from/IN
83.8/CD
%/NN
in/IN
August/NNP
./.
Measures/NNS
of/IN
manufacturing/VBG
activity/NN
fell/VBD
more/RBR
than/IN
the/DT
overall/JJ
measures/NNS
./.
Factory/NN
output/NN
dropped/VBD
0.2/CD
%/NN
,/,
its/PRP$
first/JJ
decline/NN
since/IN
February/NNP
,/,
after/IN
having/VBG
been/VBN
unchanged/JJ
in/IN
October/NNP
./.
Factories/NNS
operated/VBD
at/IN
83.7/CD
%/NN
of/IN
capacity/NN
,/,
the/DT
lowest/JJS
rate/NN
in/IN
more/JJR
than/IN
a/DT
year/NN
and/CC
down/IN
from/IN
84.1/CD
%/NN
in/IN
September/NNP
./.
The/DT
declines/NNS
mainly/RB
reflected/VBD
widespread/JJ
weakness/NN
in/IN
durable/JJ
goods/NNS
,/,
those/DT
intended/VBN
to/TO
last/VB
more/JJR
than/IN
three/CD
years/NNS
./.
The/DT
biggest/JJS
drop/NN
was/VBD
recorded/VBN
by/IN
primary/JJ
metals/NNS
producers/NNS
,/,
a/DT
category/NN
that/WDT
includes/VBZ
the/DT
steel/NN
industry/NN
./.
Output/NN
of/IN
business/NN
equipment/NN
was/VBD
unchanged/JJ
in/IN
September/NNP
./.
Production/NN
of/IN
factory/NN
equipment/NN
,/,
one/CD
indication/NN
of/IN
the/DT
strength/NN
of/IN
manufacturers/NNS
'/POS
investment/NN
spending/NN
,/,
fell/VBD
0.3/CD
%/NN
./.
Some/DT
economists/NNS
expect/VBP
further/JJ
declines/NNS
in/IN
investment/NN
spending/NN
./.
``/``
Whenever/WRB
corporate/JJ
profits/NNS
are/VBP
weak/JJ
that/WDT
means/VBZ
capital/NN
spending/NN
is/VBZ
going/VBG
to/TO
soften/VB
subsequently/RB
,/,
''/''
Mr./NNP
Harris/NNP
said/VBD
./.
``/``
You/PRP
have/VBP
n't/RB
seen/VBN
the/DT
full/JJ
effect/NN
of/IN
that/DT
yet/RB
./.
''/''
A/DT
decline/NN
in/IN
truck/NN
production/NN
more/RBR
than/IN
offset/VB
a/DT
sharp/JJ
rise/NN
in/IN
auto/NN
assemblies/NNS
,/,
the/DT
Fed/NNP
noted/VBD
./.
Analysts/NNS
do/VBP
n't/RB
expect/VB
the/DT
September/NNP
surge/NN
in/IN
auto/NN
production/NN
to/TO
be/VB
repeated/VBN
in/IN
the/DT
coming/VBG
months/NNS
./.
Here/RB
is/VBZ
a/DT
summary/NN
of/IN
the/DT
Federal/NNP
Reserve/NNP
Board/NNP
's/POS
report/NN
on/IN
industrial/JJ
production/NN
in/IN
September/NNP
./.
The/DT
figures/NNS
are/VBP
seasonally/RB
adjusted/VBN
./.
142.3/CD
%/NN
of/IN
the/DT
1977/CD
average/NN
./.
Robin/NNP
Honiss/NNP
,/,
president/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
this/DT
bank/NN
holding/VBG
company/NN
,/,
was/VBD
elected/VBN
to/TO
the/DT
additional/JJ
posts/NNS
of/IN
chairman/NN
,/,
president/NN
and/CC
chief/NN
executive/NN
of/IN
the/DT
company/NN
's/POS
New/NNP
England/NNP
Savings/NNP
Bank/NNP
subsidiary/NN
./.
William/NNP
R./NNP
Attridge/NNP
resigned/VBD
those/DT
posts/NNS
,/,
as/RB
well/RB
as/IN
a/DT
seat/NN
on/IN
NESB/NNP
's/POS
board/NN
./.
NESB/NNP
is/VBZ
also/RB
the/DT
parent/NN
of/IN
Omnibank/NNP
./.
Lung-cancer/NN
mortality/NN
rates/NNS
for/IN
people/NNS
under/IN
45/CD
years/NNS
of/IN
age/NN
have/VBP
begun/VBN
to/TO
decline/VB
,/,
federal/JJ
researchers/NNS
report/VBP
./.
The/DT
drop/NN
is/VBZ
particularly/RB
large/JJ
for/IN
white/JJ
males/NNS
,/,
although/IN
black/JJ
males/NNS
and/CC
white/JJ
and/CC
black/JJ
women/NNS
also/RB
show/VBP
lower/JJR
mortality/NN
rates/NNS
./.
A/DT
report/NN
in/IN
this/DT
week/NN
's/POS
issue/NN
of/IN
the/DT
Journal/NNP
of/IN
the/DT
National/NNP
Cancer/NNP
Institute/NNP
also/RB
projects/VBZ
that/IN
overall/JJ
U.S./NNP
mortality/NN
rates/NNS
from/IN
lung/NN
cancer/NN
,/,
the/DT
leading/VBG
cause/NN
of/IN
cancer/NN
death/NN
,/,
should/MD
begin/VB
to/TO
drop/VB
in/IN
several/JJ
years/NNS
if/IN
cigarette/NN
smoking/NN
continues/VBZ
to/TO
abate/VB
./.
The/DT
report/NN
,/,
which/WDT
comes/VBZ
25/CD
years/NNS
after/IN
the/DT
U.S./NNP
Surgeon/NNP
General/NNP
issued/VBD
a/DT
report/NN
warning/VBG
against/IN
the/DT
dangers/NNS
of/IN
smoking/NN
,/,
is/VBZ
the/DT
strongest/JJS
indication/NN
to/TO
date/NN
that/IN
the/DT
reduction/NN
in/IN
smoking/NN
is/VBZ
leading/VBG
to/TO
lower/JJR
death/NN
rates/NNS
from/IN
lung/NN
cancer/NN
./.
``/``
What/WP
this/DT
is/VBZ
saying/VBG
is/VBZ
that/IN
the/DT
surgeon/NN
general/NN
's/POS
message/NN
is/VBZ
having/VBG
an/DT
impact/NN
,/,
''/''
said/VBD
Melvyn/NNP
Tockman/NNP
,/,
an/DT
epidemiologist/NN
at/IN
the/DT
Johns/NNP
Hopkins/NNP
School/NNP
of/IN
Hygiene/NNP
and/CC
Public/NNP
Health/NNP
in/IN
Baltimore/NNP
./.
The/DT
National/NNP
Cancer/NNP
Institute/NNP
report/NN
compares/VBZ
mortality/NN
rates/NNS
of/IN
two/CD
groups/NNS
of/IN
people/NNS
between/IN
the/DT
ages/NNS
of/IN
35/CD
and/CC
44/CD
a/DT
decade/NN
apart/RB
./.
The/DT
death/NN
rate/NN
from/IN
lung/NN
cancer/NN
of/IN
white/JJ
males/NNS
aged/VBN
35/CD
to/TO
44/CD
in/IN
the/DT
mid-1970s/CD
was/VBD
13.4/CD
per/IN
100,000/CD
,/,
but/CC
the/DT
mortality/NN
rate/NN
of/IN
the/DT
same/JJ
age/NN
group/NN
in/IN
the/DT
mid-1980s/CD
was/VBD
9.6/CD
,/,
a/DT
decline/NN
of/IN
28.7/CD
%/NN
./.
Measured/VBN
the/DT
same/JJ
way/NN
,/,
the/DT
decline/NN
for/IN
black/JJ
males/NNS
was/VBD
14.2/CD
%/NN
./.
The/DT
drop/NN
in/IN
mortality/NN
rates/NNS
for/IN
women/NNS
was/VBD
less/RBR
steep/JJ
--/:
8.9/CD
%/NN
for/IN
blacks/NNS
and/CC
5.3/CD
%/NN
for/IN
whites/NNS
./.
The/DT
study/NN
,/,
by/IN
Susan/NNP
Devesa/NNP
,/,
William/NNP
Blot/NNP
and/CC
Joseph/NNP
Fraumeni/NNP
of/IN
the/DT
institute/NN
's/POS
staff/NN
,/,
also/RB
shows/VBZ
that/IN
the/DT
incidence/NN
of/IN
lung/NN
cancer/NN
as/RB
well/RB
as/IN
the/DT
death/NN
rate/NN
declined/VBD
over/IN
the/DT
decade/NN
for/IN
all/DT
groups/NNS
in/IN
the/DT
35-44/CD
age/NN
bracket/NN
,/,
except/IN
black/JJ
men/NNS
./.
Although/IN
lung-cancer/NN
mortality/NN
rates/NNS
are/VBP
increasing/VBG
for/IN
the/DT
nation/NN
as/IN
a/DT
whole/NN
,/,
the/DT
report/NN
projects/VBZ
that/IN
death/NN
rates/NNS
will/MD
begin/VB
to/TO
decline/VB
in/IN
the/DT
1990s/CD
for/IN
men/NNS
and/CC
after/IN
the/DT
year/NN
2000/CD
for/IN
women/NNS
./.
Lung-cancer/NN
mortality/NN
rates/NNS
increase/VBP
with/IN
age/NN
and/CC
are/VBP
continuing/VBG
to/TO
rise/VB
for/IN
all/DT
age/NN
groups/NNS
over/IN
55/CD
,/,
with/IN
sharp/JJ
increases/NNS
for/IN
everybody/NN
but/CC
white/JJ
men/NNS
./.
But/CC
Dr./NNP
Fraumeni/NNP
,/,
one/CD
of/IN
the/DT
authors/NNS
of/IN
the/DT
report/NN
,/,
said/VBD
``/``
the/DT
declining/VBG
rates/NNS
we/PRP
're/VBP
seeing/VBG
for/IN
younger/JJR
people/NNS
we/PRP
believe/VBP
may/MD
be/VB
a/DT
harbinger/NN
of/IN
declining/VBG
mortality/NN
in/IN
the/DT
future/NN
./.
''/''
However/RB
,/,
he/PRP
stressed/VBD
that/IN
the/DT
improvement/NN
depends/VBZ
on/IN
a/DT
continued/VBN
reduction/NN
in/IN
smoking/NN
./.
``/``
Even/RB
though/IN
these/DT
favorable/JJ
trends/NNS
in/IN
lung-cancer/NN
mortality/NN
affect/VBP
all/DT
sex/NN
and/CC
race/NN
groups/NNS
,/,
they/PRP
ca/MD
n't/RB
be/VB
taken/VBN
for/IN
granted/VBN
,/,
''/''
the/DT
report/NN
says/VBZ
./.
``/``
Smoking/NN
prevention/NN
programs/NNS
should/MD
reach/VB
larger/JJR
segments/NNS
of/IN
the/DT
population/NN
,/,
especially/RB
children/NNS
,/,
adolescents/NNS
and/CC
minorities/NNS
./.
''/''
An/DT
editorial/NN
in/IN
the/DT
NCI/NNP
Journal/NNP
says/VBZ
the/DT
report/NN
of/IN
declining/VBG
lung-cancer/NN
mortality/NN
``/``
among/IN
young/JJ
men/NNS
and/CC
women/NNS
in/IN
the/DT
U.S./NNP
indicates/VBZ
that/IN
we/PRP
finally/RB
may/MD
be/VB
winning/VBG
the/DT
battle/NN
--/:
this/DT
even/RB
in/IN
a/DT
country/NN
where/WRB
the/DT
tobacco/NN
industry/NN
spends/VBZ
over/IN
$/$
2/CD
billion/CD
a/DT
year/NN
for/IN
promotion/NN
of/IN
the/DT
addictive/JJ
habit/NN
of/IN
smoking/NN
./.
''/''
But/CC
the/DT
editorial/NN
,/,
by/IN
Jan/NNP
Stjernsward/NNP
of/IN
the/DT
World/NNP
Health/NNP
Organization/NNP
,/,
notes/VBZ
that/IN
tobacco/NN
consumption/NN
and/CC
lung-cancer/NN
mortality/NN
rates/NNS
are/VBP
rising/VBG
in/IN
developing/VBG
countries/NNS
./.
``/``
Non-smoking/NN
should/MD
be/VB
established/VBN
as/IN
the/DT
norm/NN
of/IN
social/JJ
behavior/NN
''/''
around/IN
the/DT
world/NN
,/,
the/DT
editorial/NN
says/VBZ
,/,
through/IN
the/DT
enactment/NN
of/IN
laws/NNS
that/WDT
limit/VBP
advertising/NN
,/,
boost/VBP
tobacco/NN
prices/NNS
and/CC
promote/VBP
anti-smoking/JJ
education/NN
./.
Asked/VBN
for/IN
comment/NN
,/,
Walker/NNP
Merryman/NNP
,/,
a/DT
vice/NN
president/NN
of/IN
the/DT
Tobacco/NNP
Institute/NNP
,/,
said/VBD
new/JJ
efforts/NNS
to/TO
restrict/VB
tobacco/NN
advertising/NN
in/IN
the/DT
U.S./NNP
could/MD
violate/VB
the/DT
First/NNP
Amendment/NNP
protection/NN
of/IN
free/JJ
speech/NN
./.
According/VBG
to/TO
the/DT
American/NNP
Cancer/NNP
Society/NNP
,/,
smoking/NN
is/VBZ
responsible/JJ
for/IN
85/CD
%/NN
of/IN
the/DT
lung-cancer/NN
cases/NNS
among/IN
men/NNS
and/CC
75/CD
%/NN
among/IN
women/NNS
./.
The/DT
NCI/NNP
report/NN
attributes/VBZ
the/DT
differences/NNS
in/IN
mortality/NN
rates/NNS
by/IN
race/NN
to/TO
different/JJ
smoking/NN
patterns/NNS
./.
A/DT
higher/JJR
proportion/NN
of/IN
black/JJ
men/NNS
smoke/VBP
than/IN
white/JJ
men/NNS
./.
While/IN
nearly/RB
equal/JJ
percentages/NNS
of/IN
black/JJ
and/CC
white/JJ
women/NNS
currently/RB
smoke/VBP
,/,
in/IN
both/DT
sexes/NNS
more/JJR
whites/NNS
have/VBP
given/VBN
up/IN
smoking/NN
than/IN
blacks/NNS
./.
In/IN
comparing/VBG
changes/NNS
in/IN
mortality/NN
rates/NNS
over/IN
the/DT
past/NN
decade/NN
,/,
the/DT
NCI/NNP
study/NN
looked/VBD
only/RB
at/IN
blacks/NNS
and/CC
whites/NNS
./.
Asians/NNPS
and/CC
native/JJ
Americans/NNPS
were/VBD
n't/RB
studied/VBN
;/:
Hispanics/NNPS
were/VBD
included/VBN
with/IN
whites/NNS
./.
Recent/JJ
changes/NNS
in/IN
average/JJ
annual/JJ
age-specific/JJ
lung-cancer/NN
rates/NNS
per/IN
100,000/CD
population/NN
by/IN
race/NN
and/CC
sex/NN
./.
White/NNP
Males/NNPS
White/NNP
Females/NNPS
Black/NNP
Males/NNPS
Black/NNP
Females/NNPS
Source/NN
:/:
Journal/NNP
of/IN
the/DT
National/NNP
Cancer/NNP
Institute/NNP
Directors/NNS
elected/VBD
R./NNP
Marvin/NNP
Womack/NNP
,/,
currently/RB
vice/NN
president\/product/NN
supply/NN
,/,
purchasing/NN
,/,
to/TO
head/VB
the/DT
company/NN
's/POS
Washington/NNP
,/,
D.C./NNP
,/,
office/NN
./.
As/IN
vice/NN
president\/national-government/NN
relations/NNS
,/,
Mr./NNP
Womack/NNP
will/MD
work/VB
with/IN
P&G/NNP
's/POS
top/JJ
management/NN
and/CC
with/IN
the/DT
company/NN
's/POS
government-relations/NNS
staff/NN
``/``
to/TO
represent/VB
P&G/NNP
's/POS
interests/NNS
at/IN
the/DT
federal/JJ
level/NN
,/,
''/''
said/VBD
John/NNP
G./NNP
Smale/NNP
,/,
chairman/NN
and/CC
chief/NN
executive/NN
officer/NN
./.
Mr./NNP
Smale/NNP
said/VBD
the/DT
appointment/NN
``/``
recognizes/VBZ
the/DT
growing/VBG
influence/NN
of/IN
government/NN
on/IN
our/PRP$
business/NN
./.
''/''
Mr./NNP
Womack/NNP
,/,
53/CD
years/NNS
old/JJ
,/,
has/VBZ
been/VBN
with/IN
the/DT
big/JJ
producer/NN
of/IN
household/NN
products/NNS
,/,
food/NN
and/CC
pharmaceuticals/NNS
for/IN
30/CD
years/NNS
./.
Traders/NNS
trying/VBG
to/TO
profit/VB
from/IN
the/DT
recent/JJ
volatility/NN
in/IN
financial/JJ
markets/NNS
invaded/VBD
the/DT
Nasdaq/NNP
over-the-counter/NN
market/NN
,/,
prompting/VBG
even/RB
more/JJR
swings/NNS
in/IN
stock/NN
prices/NNS
./.
After/IN
gaining/VBG
strength/NN
during/IN
a/DT
brief/JJ
run-up/NN
when/WRB
trading/NN
began/VBD
,/,
the/DT
Nasdaq/NNP
Composite/NNP
Index/NNP
weakened/VBD
under/IN
selling/VBG
pressure/NN
./.
The/DT
forces/NNS
at/IN
work/NN
included/VBD
computer-guided/JJ
trading/NN
,/,
as/RB
well/RB
as/IN
profit-driven/JJ
market/NN
makers/NNS
and/CC
institutional/JJ
investors/NNS
who/WP
had/VBD
bought/VBN
stock/NN
on/IN
the/DT
cheap/NN
during/IN
the/DT
recent/JJ
correction/NN
./.
During/IN
the/DT
last/JJ
two/CD
hours/NNS
of/IN
trading/NN
,/,
the/DT
composite/NN
almost/RB
drew/VBD
even/RB
on/IN
the/DT
day/NN
before/IN
slipping/VBG
again/RB
./.
The/DT
Nasdaq/NNP
Composite/NNP
closed/VBD
down/IN
1.05/CD
,/,
or/CC
0.2/CD
%/NN
,/,
to/TO
459.93/CD
./.
The/DT
action/NN
was/VBD
confined/VBN
to/TO
Nasdaq/NNP
's/POS
biggest/JJS
and/CC
most/RBS
liquid/JJ
stocks/NNS
,/,
traders/NNS
said/VBD
./.
The/DT
Nasdaq/NNP
100/CD
Index/NNP
began/VBD
the/DT
day/NN
at/IN
449.89/CD
,/,
lost/VBN
2/CD
%/NN
at/IN
one/CD
point/NN
,/,
and/CC
was/VBD
up/IN
0.4/CD
%/NN
at/IN
another/DT
./.
The/DT
barometer/NN
of/IN
the/DT
biggest/JJS
nonfinancial/JJ
stocks/NNS
settled/VBD
at/IN
448.49/CD
,/,
off/IN
1.40/CD
./.
Its/PRP$
counterpart/NN
,/,
the/DT
Nasdaq/NNP
Financial/NNP
Index/NNP
,/,
was/VBD
weak/JJ
for/IN
most/JJS
of/IN
the/DT
day/NN
,/,
sliding/VBG
2.51/CD
to/TO
453.57/CD
by/IN
the/DT
end/NN
of/IN
trading/NN
./.
The/DT
volatility/NN
was/VBD
dizzying/JJ
for/IN
traders/NNS
./.
``/``
The/DT
market/NN
must/MD
have/VB
turned/VBN
up/RB
and/CC
down/RB
15/CD
different/JJ
times/NNS
,/,
''/''
commented/VBD
Lance/NNP
Zipper/NNP
,/,
head/NN
of/IN
OTC/NN
trading/NN
at/IN
Kidder/NNP
Peabody/NNP
./.
``/``
Every/DT
time/NN
you/PRP
thought/VBD
it/PRP
was/VBD
going/VBG
into/IN
a/DT
rally/NN
it/PRP
gave/VBD
up/IN
,/,
and/CC
every/DT
time/NN
you/PRP
thought/VBD
it/PRP
would/MD
rally/VB
it/PRP
came/VBD
down/IN
./.
This/DT
is/VBZ
a/DT
tough/JJ
market/NN
./.
''/''
Mr./NNP
Zipper/NNP
said/VBD
the/DT
market/NN
is/VBZ
still/RB
settling/VBG
down/IN
after/IN
the/DT
recent/JJ
correction/NN
./.
Most/JJS
of/IN
trading/NN
action/NN
now/RB
is/VBZ
from/IN
professional/JJ
traders/NNS
who/WP
are/VBP
trying/VBG
to/TO
take/VB
advantage/NN
of/IN
the/DT
price/NN
swings/NNS
to/TO
turn/VB
a/DT
quick/JJ
profit/NN
,/,
he/PRP
and/CC
other/JJ
traders/NNS
said/VBD
./.
``/``
Everybody/NN
's/VBZ
confused/VBN
and/CC
no/DT
one/NN
has/VBZ
an/DT
opinion/NN
that/WDT
lasts/VBZ
longer/RB
than/IN
30/CD
seconds/NNS
,/,
''/''
said/VBD
Mr./NNP
Zipper/NNP
./.
``/``
A/DT
lot/NN
of/IN
the/DT
professional/JJ
traders/NNS
are/VBP
just/RB
going/VBG
back/RB
and/CC
forth/RB
./.
They/PRP
're/VBP
just/RB
as/RB
confused/VBN
./.
''/''
William/NNP
Rothe/NNP
,/,
head/NN
of/IN
OTC/NNP
trading/NN
at/IN
Alex/NNP
./.
Brown/NNP
&/CC
Sons/NNPS
,/,
in/IN
Baltimore/NNP
,/,
said/VBD
program/NN
trading/NN
is/VBZ
keeping/VBG
the/DT
markets/NNS
unsettled/VBN
./.
He/PRP
believes/VBZ
that/IN
the/DT
volatile/JJ
conditions/NNS
created/VBN
by/IN
program/NN
trading/NN
has/VBZ
``/``
thoroughly/RB
confused/VBN
''/''
investors/NNS
about/IN
where/WRB
the/DT
market/NN
is/VBZ
headed/VBN
./.
Program/NN
trading/NN
is/VBZ
``/``
benefiting/VBG
a/DT
few/JJ
to/TO
the/DT
detriment/NN
of/IN
many/JJ
and/CC
I/PRP
wish/VBP
someone/NN
would/MD
do/VB
something/NN
about/IN
it/PRP
,/,
''/''
he/PRP
complained/VBD
./.
Trading/NN
activity/NN
cooled/VBD
off/IN
from/IN
Monday/NNP
's/POS
sizzling/JJ
pace/NN
./.
Share/NN
turnover/NN
subsided/VBD
to/TO
161.5/CD
million/CD
./.
Advancing/VBG
and/CC
declining/VBG
issues/NNS
finished/VBD
about/IN
even/RB
./.
Of/IN
the/DT
4,345/CD
stocks/NNS
that/IN
changed/VBD
hands/NNS
,/,
1,174/CD
declined/VBD
and/CC
1,040/CD
advanced/VBD
./.
One/CD
big/JJ
technology/NN
issue/NN
,/,
Novell/NNP
,/,
rode/VBD
the/DT
roller/NN
coaster/NN
./.
The/DT
stock/NN
,/,
which/WDT
finished/VBD
Monday/NNP
at/IN
29/CD
1\/2/CD
,/,
traded/VBD
as/RB
high/JJ
as/IN
29/CD
3\/4/CD
and/CC
as/RB
low/JJ
as/IN
28/CD
3\/4/CD
before/IN
closing/VBG
at/IN
29/CD
1\/4/CD
,/,
down/IN
1\/4/CD
./.
It/PRP
was/VBD
a/DT
jarring/VBG
day/NN
for/IN
investors/NNS
in/IN
Genetics/NNP
Institute/NNP
./.
The/DT
stock/NN
tumbled/VBD
2/CD
3\/4/CD
on/IN
news/NN
that/IN
it/PRP
might/MD
have/VB
to/TO
take/VB
a/DT
charge/NN
against/IN
earnings/NNS
if/IN
it/PRP
ca/MD
n't/RB
successfully/RB
resolve/VB
a/DT
dispute/NN
with/IN
its/PRP$
European/JJ
licensee/NN
,/,
Boehringer/NNP
Mannheim/NNP
,/,
over/IN
its/PRP$
anti-anemia/NN
drug/NN
,/,
EPO/NNP
./.
The/DT
stock/NN
recovered/VBD
somewhat/RB
to/TO
finish/VB
1/CD
1\/4/CD
lower/JJR
at/IN
26/CD
1\/4/CD
./.
In/IN
a/DT
statement/NN
,/,
Genetics/NNP
Institute/NNP
said/VBD
the/DT
dispute/NN
with/IN
Boehringer/NNP
centers/VBZ
on/IN
questions/NNS
of/IN
the/DT
usability/NN
of/IN
certain/JJ
batches/NNS
of/IN
EPO/NNP
material/NN
valued/VBN
at/IN
$/$
13.6/CD
million/CD
./.
Earlier/RBR
this/DT
week/NN
,/,
Genetics/NNP
Institute/NNP
reported/VBD
wider/JJR
losses/NNS
in/IN
its/PRP$
fiscal/JJ
third/JJ
quarter/NN
ended/VBD
Aug./NNP
31/CD
./.
Price/NNP
Co./NNP
jumped/VBD
2/CD
1\/4/CD
to/TO
44/CD
on/IN
1.7/CD
million/CD
shares/NNS
./.
The/DT
wholesaler/NN
of/IN
cash/NN
and/CC
carry/NN
merchandise/NN
reported/VBD
fiscal/JJ
fourthquarter/NN
earnings/NNS
that/WDT
were/VBD
better/JJR
than/IN
analysts/NNS
had/VBD
expected/VBN
./.
The/DT
company/NN
also/RB
pleased/VBD
analysts/NNS
by/IN
announcing/VBG
four/CD
new/JJ
store/NN
openings/NNS
planned/VBN
for/IN
fiscal/JJ
1990/CD
,/,
ending/VBG
next/JJ
August/NNP
./.
That/DT
will/MD
bring/VB
the/DT
total/NN
for/IN
the/DT
year/NN
to/TO
10/CD
,/,
from/IN
five/CD
during/IN
fiscal/JJ
1989/CD
./.
``/``
Every/DT
year/NN
we/PRP
've/VBP
been/VBN
waiting/VBG
for/IN
stepped-up/JJ
expansion/NN
from/IN
the/DT
company/NN
./.
The/DT
news/NN
could/MD
n't/RB
have/VB
been/VBN
better/JJR
,/,
''/''
said/VBD
Linda/NNP
Kristiansen/NNP
,/,
a/DT
Dean/NNP
Witter/NNP
Reynolds/NNP
analyst/NN
,/,
in/IN
an/DT
interview/NN
./.
Intermec/NNP
,/,
a/DT
maker/NN
of/IN
optical/JJ
character-recognition/NN
devices/NNS
,/,
also/RB
reported/VBD
higher/JJR
third-quarter/NN
earnings/NNS
./.
Its/PRP$
shares/NNS
added/VBD
3\/4/CD
to/TO
30/CD
3\/4/CD
./.
But/CC
favorable/JJ
earnings/NNS
was/VBD
n't/RB
a/DT
guarantee/NN
that/IN
a/DT
stock/NN
's/POS
price/NN
would/MD
improve/VB
yesterday/NN
./.
MCI/NNP
Communications/NNP
tumbled/VBD
2/CD
5\/8/CD
to/TO
42/CD
3\/8/CD
on/IN
4.7/CD
million/CD
shares/NNS
even/RB
though/IN
the/DT
telecommunications/NNS
giant/NN
reported/VBD
a/DT
63/CD
%/NN
increase/NN
in/IN
third-quarter/NN
profit/NN
./.
CoreStates/NNPS
Financial/NNP
slipped/VBD
3\/8/CD
to/TO
43/CD
1\/8/CD
in/IN
active/JJ
trading/NN
after/IN
reporting/VBG
that/IN
third-quarter/NN
earnings/NNS
improved/VBD
to/TO
$/$
1.27/CD
a/DT
share/NN
from/IN
$/$
1.15/CD
a/DT
share/NN
a/DT
year/NN
earlier/RBR
./.
However/RB
,/,
the/DT
bank/NN
holding/VBG
company/NN
's/POS
loan-loss/NN
reserves/NNS
rose/VBD
to/TO
$/$
177.3/CD
million/CD
from/IN
$/$
154/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
A&W/NNP
Brands/NNPS
lost/VBD
1\/4/CD
to/TO
27/CD
./.
But/CC
its/PRP$
thirdquarter/NN
earnings/NNS
rose/VBD
to/TO
26/CD
cents/NNS
a/DT
share/NN
from/IN
18/CD
cents/NNS
a/DT
share/NN
last/JJ
year/NN
./.
Capital/NNP
Associates/NNPS
dropped/VBD
1/CD
to/TO
5/CD
3\/8/CD
./.
The/DT
company/NN
,/,
which/WDT
leases/VBZ
technology/NN
equipment/NN
,/,
reported/VBD
substantially/RB
lower/JJR
net/NN
income/NN
for/IN
its/PRP$
fiscal/JJ
first/JJ
quarter/NN
,/,
which/WDT
ended/VBD
Aug./NNP
31/CD
./.
Robert/NNP
M./NNP
Jelenic/NNP
,/,
39/CD
,/,
was/VBD
named/VBN
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
of/IN
this/DT
closely/RB
held/VBN
publisher/NN
./.
The/DT
post/NN
had/VBD
been/VBN
vacant/JJ
for/IN
more/RBR
than/IN
a/DT
year/NN
./.
Mr./NNP
Jelenic/NNP
had/VBD
been/VBN
executive/JJ
vice/NN
president/NN
for/IN
operations/NNS
./.
In/IN
addition/NN
,/,
Ralph/NNP
Ingersoll/NNP
II/NNP
,/,
43/CD
,/,
chairman/NN
and/CC
chief/NN
executive/NN
,/,
said/VBD
he/PRP
would/MD
take/VB
on/IN
additional/JJ
responsibilities/NNS
as/IN
editor/NN
in/IN
chief/NN
of/IN
the/DT
company/NN
./.
John/NNP
Wilpers/NNP
resigned/VBD
as/IN
editor/NN
in/IN
chief/NN
./.
Mr./NNP
Ingersoll/NNP
remains/VBZ
editor/NN
in/IN
chief/NN
of/IN
the/DT
company/NN
's/POS
recently/RB
launched/VBN
daily/RB
,/,
the/DT
St./NNP
Louis/NNP
Sun/NNP
./.
Also/RB
,/,
Jean/NNP
B./NNP
Clifton/NNP
,/,
28/CD
,/,
was/VBD
named/VBN
executive/JJ
vice/NN
president/NN
,/,
treasurer/NN
and/CC
chief/NN
financial/JJ
officer/NN
./.
Michael/NNP
Applebaum/NNP
resigned/VBD
after/IN
less/RBR
than/IN
a/DT
year/NN
in/IN
the/DT
posts/NNS
./.
Ms./NNP
Clifton/NNP
had/VBD
been/VBN
executive/JJ
financial/JJ
assistant/NN
to/TO
the/DT
chairman/NN
./.
Certainly/RB
conservative/JJ
environmentalists/NNS
can/MD
defend/VB
their/PRP$
limited/VBN
government/NN
position/NN
by/IN
differentiating/VBG
between/IN
Old/NNP
Environmentalism/NNP
and/CC
New/NNP
Environmentalism/NNP
``/``
Journalists/NNPS
and/CC
Others/NNPS
for/IN
Saving/NNP
the/DT
Planet/NNP
,/,
''/''
by/IN
David/NNP
Brooks/NNP
,/,
editorial/NN
page/NN
,/,
Oct./NNP
5/CD
Old/NNP
Environmentalism/NNP
involved/VBD
microbe/NN
hunters/NNS
and/CC
sanitationists/NNS
./.
It/PRP
started/VBD
with/IN
improvements/NNS
in/IN
hygiene/NN
made/VBN
possible/JJ
by/IN
affordable/JJ
soap/NN
and/CC
washable/JJ
underwear/NN
during/IN
the/DT
Industrial/NNP
Revolution/NNP
./.
Then/RB
cast-iron/JJ
sewer/NN
pipe/NN
and/CC
the/DT
flush/JJ
toilet/NN
were/VBD
followed/VBN
by/IN
sewage/NN
water-treatment/NN
plants/NNS
toward/IN
the/DT
end/NN
of/IN
the/DT
19th/JJ
century/NN
./.
Medicine/NN
in/IN
the/DT
19th/JJ
century/NN
was/VBD
dedicated/VBN
mostly/RB
to/TO
combating/VBG
sepsis/NN
and/CC
diagnostic/JJ
analysis/NN
./.
Then/RB
the/DT
20th/JJ
century/NN
saw/VBD
the/DT
evolution/NN
of/IN
private-sector/JJ
wonder/NN
drugs/NNS
,/,
which/WDT
promulgated/VBD
medical/JJ
therapy/NN
./.
The/DT
process/NN
dramatically/RB
increased/VBD
our/PRP$
average/JJ
life/NN
expectancy/NN
,/,
eliminated/VBD
much/JJ
pain/NN
and/CC
constantly/RB
improved/VBN
health/NN
and/CC
well-being/NN
./.
Most/JJS
public-health/NN
measures/NNS
were/VBD
handled/VBN
at/IN
the/DT
local/JJ
level/NN
./.
New/NNP
Environmentalism/NNP
probably/RB
started/VBD
in/IN
1962/CD
with/IN
the/DT
publication/NN
of/IN
Rachel/NNP
Carson/NNP
's/POS
book/NN
``/``
Silent/NNP
Spring/NNP
./.
''/''
Shortly/RB
thereafter/RB
,/,
hysterical/JJ
articles/NNS
began/VBD
to/TO
appear/VB
predicting/VBG
that/IN
advanced/VBN
industrial/JJ
societies/NNS
would/MD
produce/VB
a/DT
blackened/VBN
,/,
uninhabitable/JJ
planet/NN
possibly/RB
by/IN
the/DT
turn/NN
of/IN
the/DT
century/NN
./.
These/DT
apocalyptic/JJ
predictions/NNS
were/VBD
advanced/VBN
by/IN
such/JJ
stalwarts/NNS
as/IN
Paul/NNP
Ehrlich/NNP
,/,
Barry/NNP
Commoner/NNP
,/,
Rene/NNP
Dubois/NNP
and/CC
George/NNP
Wald/NNP
./.
Writing/VBG
in/IN
the/DT
1960s/CD
Ms./NNP
Carson/NNP
suggested/VBD
that/IN
the/DT
human/JJ
race/NN
could/MD
be/VB
eliminated/VBN
in/IN
20/CD
years/NNS
,/,
and/CC
Mr./NNP
Wald/NNP
suggested/VBD
that/DT
life/NN
on/IN
earth/NN
might/MD
end/VB
by/IN
1985/CD
./.
Mr./NNP
Ehrlich/NNP
predicted/VBD
unprecedented/JJ
famine/NN
by/IN
1980/CD
./.
There/EX
were/VBD
many/RB
more/JJR
./.
Thousands/NNS
of/IN
chemical/NN
products/NNS
were/VBD
categorized/VBN
as/IN
carcinogenic/JJ
,/,
with/IN
recommendations/NNS
that/IN
they/PRP
be/VB
banned/VBN
from/IN
industrial/JJ
use/NN
because/IN
they/PRP
produced/VBD
malignant/JJ
tumors/NNS
in/IN
overdosed/VBN
rats/NNS
./.
Unknown/JJ
before/IN
1960/CD
were/VBD
the/DT
inconclusive/JJ
effects/NNS
of/IN
acid/NN
rain/NN
,/,
greenhouse/NN
warming/NN
and/CC
ozone/NN
depletion/NN
,/,
all/DT
of/IN
which/WDT
required/VBD
burgeoning/VBG
political/JJ
power/NN
and/CC
gargantuan/JJ
expense/NN
./.
Meanwhile/RB
,/,
the/DT
New/NNP
Environmentalists/NNPS
systematically/RB
opposed/VBD
the/DT
methods/NNS
of/IN
the/DT
Old/NNP
Environmentalists/NNPS
./.
Local/JJ
pollution/NN
problems/NNS
require/VBP
cheap/JJ
energy/NN
and/CC
capital/NN
for/IN
their/PRP$
solution/NN
./.
But/CC
the/DT
New/NNP
Environmentalists/NNPS
oppose/VBP
private/JJ
wealth/NN
creation/NN
which/WDT
,/,
they/PRP
claim/VBP
,/,
depletes/VBZ
natural/JJ
resources/NNS
nuclear/JJ
power/NN
it/PRP
would/MD
counteract/VB
the/DT
greenhouse/NN
effect/NN
They/PRP
are/VBP
in/IN
the/DT
forefront/NN
of/IN
opposing/VBG
the/DT
search/NN
for/IN
new/JJ
landfills/NNS
and/CC
methods/NNS
of/IN
incineration/NN
and/CC
even/RB
oppose/VBP
new/JJ
methods/NNS
of/IN
research/NN
such/JJ
as/IN
genetic/JJ
engineering/NN
./.
New/NNP
Environmentalism/NNP
is/VBZ
an/DT
emotional/JJ
attack/NN
on/IN
proven/VBN
methods/NNS
of/IN
improving/VBG
our/PRP$
quality/NN
of/IN
life/NN
and/CC
a/DT
bid/NN
for/IN
political/JJ
power/NN
./.
Let/VB
's/PRP
rationalize/VB
our/PRP$
priorities/NNS
by/IN
solving/VBG
pollution/NN
problems/NNS
at/IN
the/DT
local/JJ
level/NN
as/RB
heretofore/RB
./.
Harry/NNP
Lee/NNP
Smith/NNP
Alpharetta/NNP
,/,
Ga/NNP
./.
Your/PRP$
story/NN
missed/VBD
some/DT
essential/JJ
points/NNS
of/IN
the/DT
conference/NN
on/IN
``/``
The/NNP
Global/NNP
Environment/NNP
:/:
Are/VBP
We/PRP
Overreacting/VBG
?/.
''/''
First/RB
and/CC
foremost/RB
,/,
the/DT
vignettes/NNS
presented/VBN
by/IN
the/DT
various/JJ
scientists/NNS
represent/VBP
a/DT
general/JJ
consensus/NN
among/IN
specialists/NNS
working/VBG
in/IN
the/DT
respective/JJ
aspects/NNS
of/IN
the/DT
global/JJ
environment/NN
./.
Consider/VB
,/,
for/IN
example/NN
,/,
the/DT
greenhouse/NN
effect/NN
and/CC
climate/NN
change/NN
;/:
numerous/JJ
blue-ribbon/JJ
scientific/JJ
committees/NNS
,/,
including/VBG
one/CD
from/IN
the/DT
National/NNP
Academy/NNP
of/IN
Science/NNP
,/,
judge/VBP
there/EX
is/VBZ
a/DT
greater/JJR
than/IN
50/CD
%/NN
probability/NN
of/IN
a/DT
grave/JJ
problem/NN
in/IN
the/DT
offing/NN
./.
The/DT
point/NN
was/VBD
to/TO
answer/VB
the/DT
question/NN
in/IN
the/DT
conference/NN
title/NN
,/,
not/RB
to/TO
try/VB
to/TO
create/VB
news/NN
stories/NNS
for/IN
the/DT
event/NN
itself/PRP
./.
Nor/CC
was/VBD
it/PRP
intended/VBN
to/TO
dictate/VB
a/DT
set/NN
of/IN
prescriptive/JJ
solutions/NNS
,/,
although/IN
various/JJ
points/NNS
were/VBD
raised/VBN
./.
Each/DT
speaker/NN
was/VBD
asked/VBN
to/TO
address/VB
a/DT
specific/JJ
topic/NN
,/,
not/RB
deliver/VB
a/DT
point/NN
of/IN
view/NN
./.
Each/DT
scientist/NN
independently/RB
concluded/VBD
society/NN
and/CC
government/NN
are/VBP
underreacting/VBG
when/WRB
it/PRP
comes/VBZ
to/TO
substantive/JJ
policy/NN
change/NN
./.
This/DT
leads/VBZ
to/TO
a/DT
very/RB
special/JJ
sense/NN
of/IN
urgency/NN
./.
If/IN
the/DT
media/NNS
decide/VBP
to/TO
work/VB
harder/RBR
at/IN
educating/VBG
the/DT
public/NN
about/IN
these/DT
complex/JJ
and/CC
technical/JJ
issues/NNS
,/,
that/WDT
hardly/RB
can/MD
be/VB
termed/VBN
non-objective/JJ
journalism/NN
./.
The/DT
environment/NN
can/MD
no/RB
longer/RB
be/VB
a/DT
normal/JJ
issue/NN
,/,
to/TO
be/VB
dealt/VBN
with/IN
on/IN
a/DT
business-as-usual/JJ
basis/NN
with/IN
comfortable/JJ
increments/NNS
of/IN
change/NN
./.
We/PRP
have/VBP
literally/RB
altered/VBN
the/DT
chemistry/NN
and/CC
physics/NNS
of/IN
our/PRP$
planet/NN
's/POS
atmosphere/NN
./.
This/DT
portends/VBZ
consequences/NNS
from/IN
what/WP
we/PRP
have/VBP
already/RB
done/VBN
that/WDT
will/MD
be/VB
very/RB
destabilizing/VBG
to/TO
social/JJ
and/CC
economic/JJ
systems/NNS
./.
The/DT
problems/NNS
of/IN
the/DT
environment/NN
are/VBP
so/RB
interrelated/JJ
,/,
so/RB
inextricably/RB
entwined/VBN
with/IN
our/PRP$
current/JJ
way/NN
of/IN
life/NN
and/CC
so/RB
large/JJ
that/IN
it/PRP
is/VBZ
unlikely/JJ
we/PRP
will/MD
be/VB
able/JJ
to/TO
address/VB
them/PRP
effectively/RB
unless/IN
major/JJ
changes/NNS
are/VBP
made/VBN
in/IN
less/RBR
than/IN
10/CD
years/NNS
./.
The/DT
consensus/NN
from/IN
the/DT
scientific/JJ
community/NN
is/VBZ
that/IN
there/EX
is/VBZ
sufficient/JJ
evidence/NN
to/TO
advise/VB
major/JJ
policy/NN
changes/NNS
./.
No/RB
,/,
we/PRP
are/VBP
not/RB
overreacting/VBG
./.
Thomas/NNP
E./NNP
Lovejoy/NNP
Assistant/NNP
Secretary/NNP
for/IN
External/NNP
Affairs/NNPS
Smithsonian/NNP
Institution/NNP
Washington/NNP
Coca-Cola/NNP
Enterprises/NNPS
Inc./NNP
,/,
fulfilling/VBG
its/PRP$
dismal/JJ
earnings/NNS
forecast/VBN
for/IN
1989/CD
,/,
said/VBD
its/PRP$
third-quarter/NN
net/NN
income/NN
fell/VBD
68/CD
%/NN
on/IN
flat/JJ
revenue/NN
./.
Stung/VBN
by/IN
higher/JJR
marketing/NN
costs/NNS
and/CC
slowing/VBG
volume/NN
growth/NN
,/,
the/DT
giant/JJ
Coke/NNP
bottling/NN
operation/NN
said/VBD
net/NN
fell/VBD
to/TO
$/$
12.7/CD
million/CD
,/,
or/CC
six/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
39.9/CD
million/CD
,/,
or/CC
26/CD
cents/NNS
a/DT
share/NN
,/,
the/DT
year/NN
earlier/RBR
./.
The/DT
results/NNS
met/VBD
estimates/NNS
of/IN
analysts/NNS
,/,
who/WP
had/VBD
already/RB
slashed/VBN
their/PRP$
projections/NNS
after/IN
the/DT
company/NN
said/VBD
in/IN
late/JJ
August/NNP
that/IN
its/PRP$
1989/CD
earnings/NNS
could/MD
tumble/VB
as/RB
much/RB
as/IN
37/CD
%/NN
./.
A/DT
company/NN
spokesman/NN
said/VBD
yesterday/NN
that/IN
Coca-Cola/NNP
Enterprises/NNPS
sticks/VBZ
by/IN
its/PRP$
1989/CD
forecast/NN
./.
Third-quarter/NN
revenue/NN
was/VBD
flat/JJ
at/IN
$/$
1.02/CD
billion/CD
./.
The/DT
year-ago/JJ
results/NNS
,/,
however/RB
,/,
included/VBD
the/DT
operations/NNS
of/IN
a/DT
bottling/NN
business/NN
,/,
which/WDT
was/VBD
sold/VBN
last/JJ
December/NNP
./.
Excluding/VBG
that/DT
bottling/NN
business/NN
,/,
Coca-Cola/NNP
Enterprises/NNPS
'/POS
volume/NN
,/,
measured/VBN
by/IN
cases/NNS
of/IN
soda/NN
,/,
rose/VBD
only/RB
1/CD
%/NN
./.
The/DT
volume/NN
is/VBZ
well/RB
below/IN
the/DT
industry/NN
's/POS
4/CD
%/NN
to/TO
5/CD
%/NN
growth/NN
rate/NN
of/IN
recent/JJ
years/NNS
,/,
but/CC
in/IN
line/NN
with/IN
other/JJ
soft-drink/JJ
companies/NNS
for/IN
the/DT
third/JJ
quarter/NN
./.
The/DT
latest/JJS
third-quarter/NN
volume/NN
also/RB
compares/VBZ
with/IN
a/DT
very/RB
strong/JJ
10/CD
%/NN
growth/NN
in/IN
the/DT
year-ago/JJ
quarter/NN
./.
Coca-Cola/NNP
Enterprises/NNPS
blamed/VBD
the/DT
lower/JJR
volume/NN
on/IN
its/PRP$
soft-drink/JJ
prices/NNS
,/,
which/WDT
were/VBD
about/IN
3/CD
%/NN
higher/JJR
in/IN
the/DT
third/JJ
quarter/NN
./.
Consumers/NNS
have/VBP
been/VBN
accustomed/VBN
to/TO
buying/VBG
soft-drinks/NNS
at/IN
discounted/VBN
prices/NNS
for/IN
several/JJ
years/NNS
./.
Coca-Cola/NNP
Enterprises/NNPS
said/VBD
it/PRP
had/VBD
to/TO
boost/VB
spending/VBG
for/IN
trade/NN
and/CC
dealer/NN
incentives/NNS
to/TO
try/VB
to/TO
keep/VB
volumes/NNS
from/IN
slipping/VBG
./.
The/DT
company/NN
said/VBD
it/PRP
expects/VBZ
consumers/NNS
will/MD
adjust/VB
to/TO
higher-priced/JJ
soft/JJ
drinks/NNS
./.
A/DT
spokesman/NN
attributed/VBD
the/DT
bulk/NN
of/IN
a/DT
14/CD
%/NN
increase/NN
in/IN
selling/VBG
,/,
administrative/JJ
and/CC
general/JJ
expenses/NNS
--/:
to/TO
$/$
324.9/CD
million/CD
--/:
to/TO
marketing/NN
costs/NNS
./.
``/``
They/PRP
're/VBP
out/IN
there/RB
promoting/VBG
like/IN
crazy/JJ
,/,
trying/VBG
to/TO
get/VB
prices/NNS
up/IN
by/IN
promotion/NN
,/,
''/''
said/VBD
Roy/NNP
Burry/NNP
,/,
an/DT
analyst/NN
with/IN
Kidder/NNP
,/,
Peabody/NNP
&/CC
Co/NNP
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Coca-Cola/NNP
Enterprises/NNPS
'/POS
net/NN
fell/VBD
31/CD
%/NN
to/TO
$/$
65/CD
million/CD
,/,
or/CC
39/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
93.8/CD
million/CD
,/,
or/CC
63/CD
cents/NNS
a/DT
share/NN
./.
Revenue/NN
was/VBD
flat/JJ
at/IN
about/IN
$/$
2.97/CD
billion/CD
./.
Coca-Cola/NNP
Enterprises/NNPS
,/,
which/WDT
is/VBZ
49%-owned/JJ
by/IN
Coca-Cola/NNP
Co./NNP
,/,
also/RB
said/VBD
it/PRP
repurchased/VBD
about/IN
1.2/CD
million/CD
of/IN
its/PRP$
common/JJ
shares/NNS
during/IN
the/DT
third/JJ
quarter/NN
./.
The/DT
buy-back/NN
is/VBZ
part/NN
of/IN
a/DT
25-million-share/JJ
repurchase/VBN
plan/NN
,/,
under/IN
which/WDT
Coca-Cola/NNP
Enterprises/NNPS
so/RB
far/RB
has/VBZ
acquired/VBN
a/DT
total/NN
of/IN
9.7/CD
million/CD
shares/NNS
./.
Separately/RB
,/,
Purchase/NNP
,/,
N.Y.-based/JJ
PepsiCo/NNP
Inc./NNP
,/,
as/IN
expected/VBN
,/,
said/VBD
fiscal/JJ
third-quarter/NN
net/NN
rose/VBD
11/CD
%/NN
to/TO
$/$
269.3/CD
million/CD
,/,
or/CC
$/$
1.02/CD
a/DT
share/NN
,/,
from/IN
$/$
241.6/CD
million/CD
,/,
or/CC
91/CD
cents/NNS
a/DT
share/NN
./.
Sales/NNS
rose/VBD
25/CD
%/NN
to/TO
$/$
3.90/CD
billion/CD
from/IN
$/$
3.13/CD
billion/CD
./.
The/DT
year-ago/JJ
quarter/NN
's/POS
results/NNS
include/VBP
an/DT
after-tax/JJ
charge/NN
of/IN
$/$
5.9/CD
million/CD
from/IN
the/DT
sale/NN
of/IN
a/DT
winery/NN
in/IN
Spain/NNP
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Coca-Cola/NNP
Enterprises/NNPS
closed/VBD
at/IN
$/$
16.375/CD
a/DT
share/NN
,/,
down/IN
62.5/CD
cents/NNS
./.
PepsiCo/NNP
closed/VBD
at/IN
$/$
58.50/CD
a/DT
share/NN
,/,
up/IN
$/$
1.375/CD
./.
L.J./NNP
Hooker/NNP
Corp./NNP
is/VBZ
expected/VBN
to/TO
reach/VB
an/DT
agreement/NN
in/IN
principle/NN
this/DT
week/NN
to/TO
sell/VB
Merksamer/NNP
Jewelers/NNPS
Inc./NNP
to/TO
management/NN
,/,
say/VBP
executives/NNS
familiar/JJ
with/IN
the/DT
talks/NNS
./.
L.J./NNP
Hooker/NNP
,/,
based/VBN
in/IN
Atlanta/NNP
,/,
filed/VBD
for/IN
Chapter/NN
11/CD
bankruptcy/NN
protection/NN
earlier/RBR
this/DT
year/NN
./.
Currently/RB
,/,
its/PRP$
parent/NN
company/NN
,/,
Hooker/NNP
Corp./NNP
of/IN
Sydney/NNP
,/,
Australia/NNP
,/,
is/VBZ
being/VBG
managed/VBN
by/IN
a/DT
court-appointed/JJ
liquidator/NN
./.
It/PRP
is/VBZ
expected/VBN
that/IN
GE/NNP
Capital/NNP
Corp./NNP
,/,
a/DT
financial-services/NNS
subsidiary/NN
of/IN
General/NNP
Electric/NNP
Co./NNP
,/,
will/MD
provide/VB
much/RB
of/IN
the/DT
funding/NN
for/IN
the/DT
proposed/VBN
leveraged/JJ
buy-out/NN
of/IN
Merksamer/NNP
,/,
based/VBN
in/IN
Sacramento/NNP
,/,
Calif/NNP
./.
A/DT
spokesman/NN
for/IN
GE/NNP
Capital/NNP
declined/VBD
to/TO
comment/VB
./.
GE/NNP
Capital/NNP
has/VBZ
a/DT
working/VBG
relationship/NN
with/IN
L.J./NNP
Hooker/NNP
./.
It/PRP
is/VBZ
providing/VBG
$/$
50/CD
million/CD
in/IN
emergency/NN
financing/NN
to/TO
the/DT
company/NN
and/CC
has/VBZ
agreed/VBN
to/TO
buy/VB
as/RB
much/RB
as/IN
$/$
75/CD
million/CD
in/IN
receivables/NN
from/IN
B./NNP
Altman/NNP
&/CC
Co./NNP
and/CC
Bonwit/NNP
Teller/NNP
,/,
L.J./NNP
Hooker/NNP
's/POS
two/CD
fully/RB
owned/VBN
department-store/NN
chains/NNS
./.
Sam/NNP
Merksamer/NNP
,/,
chief/NN
executive/NN
officer/NN
of/IN
the/DT
nationwide/JJ
jewelry/NN
chain/NN
,/,
and/CC
Sanford/NNP
Sigoloff/NNP
,/,
chief/NN
executive/NN
of/IN
L.J./NNP
Hooker/NNP
Corp./NNP
,/,
both/DT
declined/VBD
to/TO
comment/VB
./.
Currently/RB
,/,
Mr./NNP
Merksamer/NNP
owns/VBZ
20/CD
%/NN
of/IN
the/DT
company/NN
;/:
L.J./NNP
Hooker/NNP
acquired/VBD
its/PRP$
80/CD
%/NN
interest/NN
in/IN
the/DT
firm/NN
in/IN
May/NNP
1986/CD
./.
At/IN
the/DT
time/NN
,/,
the/DT
Merksamer/NNP
chain/NN
had/VBD
11/CD
stores/NNS
in/IN
operation/NN
./.
Today/NN
,/,
there/EX
are/VBP
77/CD
units/NNS
,/,
all/DT
located/VBN
in/IN
shopping/NN
malls/NNS
./.
In/IN
recent/JJ
weeks/NNS
Mr./NNP
Merksamer/NNP
has/VBZ
approached/VBN
a/DT
number/NN
of/IN
his/PRP$
suppliers/NNS
and/CC
asked/VBN
them/PRP
to/TO
provide/VB
letters/NNS
of/IN
intent/NN
saying/VBG
they/PRP
will/MD
continue/VB
shipping/VBG
merchandise/NN
to/TO
the/DT
chain/NN
following/VBG
the/DT
buy-out/NN
,/,
say/VBP
those/DT
familiar/JJ
with/IN
the/DT
situation/NN
./.
This/DT
year/NN
,/,
a/DT
number/NN
of/IN
retail/JJ
leveraged/JJ
buyouts/NNS
have/VBP
failed/VBN
,/,
causing/VBG
jitters/NNS
among/IN
suppliers/NNS
,/,
and/CC
Mr./NNP
Merksamer/NNP
apparently/RB
wanted/VBD
assurances/NNS
that/IN
he/PRP
wo/MD
n't/RB
have/VB
delivery/NN
problems/NNS
./.
For/IN
the/DT
year/NN
ended/VBD
June/NNP
30/CD
,/,
1989/CD
,/,
Merksamer/NNP
Jewelers/NNPS
had/VBD
$/$
62/CD
million/CD
of/IN
revenue/NN
and/CC
operating/VBG
profit/NN
of/IN
$/$
2.5/CD
million/CD
./.
The/DT
jewelery/NN
chain/NN
was/VBD
put/VBN
up/IN
for/IN
sale/NN
in/IN
June/NNP
./.
According/VBG
to/TO
those/DT
familiar/JJ
with/IN
the/DT
situation/NN
,/,
other/JJ
bidders/NNS
included/VBD
Ratners/NNP
Group/NNP
PLC/NNP
of/IN
London/NNP
and/CC
Kay/NNP
Jewelers/NNPS
Inc/NNP
./.
First/NNP
Boston/NNP
Corp./NNP
is/VBZ
advising/VBG
L.J./NNP
Hooker/NNP
on/IN
the/DT
sale/NN
of/IN
the/DT
Merksamer/NNP
business/NN
./.
Merksamer/NNP
was/VBD
the/DT
first/JJ
in/IN
a/DT
series/NN
of/IN
retail/JJ
acquisitions/NNS
made/VBN
by/IN
L.J./NNP
Hooker/NNP
./.
The/DT
company/NN
was/VBD
founded/VBN
in/IN
Sacramento/NNP
in/IN
1929/CD
by/IN
two/CD
brothers/NNS
,/,
Ralph/NNP
and/CC
Walter/NNP
Merksamer/NNP
,/,
who/WP
operated/VBD
as/IN
DeVon/NNP
's/POS
Jewelers/NNPS
./.
In/IN
1979/CD
,/,
the/DT
pair/NN
split/VBD
the/DT
company/NN
in/IN
half/DT
,/,
with/IN
Walter/NNP
and/CC
his/PRP$
son/NN
,/,
Sam/NNP
,/,
agreeing/VBG
to/TO
operate/VB
under/IN
the/DT
Merksamer/NNP
Jewelery/NNP
name/NN
./.
The/DT
sale/NN
of/IN
Merksamer/NNP
Jewelers/NNPS
is/VBZ
subject/JJ
to/TO
approval/NN
by/IN
Judge/NNP
Tina/NNP
Brozman/NNP
of/IN
U.S./NNP
Bankruptcy/NNP
Court/NNP
./.
As/IN
earlier/RBR
reported/VBN
,/,
L.J./NNP
Hooker/NNP
this/DT
week/NN
received/VBD
a/DT
$/$
409/CD
million/CD
bid/NN
for/IN
its/PRP$
three/CD
shopping/NN
malls/NNS
,/,
plus/CC
other/JJ
properties/NNS
from/IN
a/DT
consortium/NN
led/VBN
by/IN
Honolulu/NNP
real-estate/NN
investor/NN
Jay/NNP
Shidler/NNP
and/CC
A./NNP
Boyd/NNP
Simpson/NNP
,/,
an/DT
Atlanta/NNP
developer/NN
and/CC
former/JJ
L.J./NNP
Hooker/NNP
senior/JJ
executive/NN
./.
The/DT
offer/NN
,/,
which/WDT
did/VBD
n't/RB
include/VB
the/DT
Merksamer/NNP
chain/NN
,/,
is/VBZ
being/VBG
reviewed/VBN
by/IN
Mr./NNP
Sigoloff/NNP
./.
Robert/NNP
J./NNP
Regal/NNP
was/VBD
named/VBN
president/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
this/DT
company/NN
's/POS
Universal-Rundle/NNP
Corp./NNP
unit/NN
./.
Mr./NNP
Regal/NNP
had/VBD
been/VBN
president/NN
and/CC
chief/NN
executive/NN
of/IN
RBS/NNP
Industries/NNPS
Inc/NNP
./.
Robert/NNP
H./NNP
Carlson/NNP
,/,
previous/JJ
president/NN
and/CC
chief/NN
executive/NN
of/IN
Universal-Rundle/NNP
,/,
will/MD
assume/VB
the/DT
title/NN
of/IN
chairman/NN
of/IN
the/DT
unit/NN
,/,
a/DT
vitreous-china/NN
maker/NN
./.
The/DT
days/NNS
may/MD
be/VB
numbered/VBN
for/IN
animated/VBN
shows/NNS
featuring/VBG
Alf/NNP
,/,
the/DT
Karate/NNP
Kid/NNP
and/CC
the/DT
Chipmunks/NNPS
./.
NBC/NNP
,/,
a/DT
leader/NN
in/IN
morning/NN
,/,
prime-time/JJ
and/CC
late/JJ
night/NN
programs/NNS
but/CC
an/DT
also-ran/NN
on/IN
Saturday/NNP
mornings/NNS
,/,
when/WRB
children/NNS
rule/VB
the/DT
TV/NN
set/NN
,/,
is/VBZ
contemplating/VBG
getting/VBG
out/IN
of/IN
the/DT
cartoon/NN
business/NN
./.
Instead/RB
,/,
network/NN
officials/NNS
say/VBP
,/,
it/PRP
may/MD
``/``
counterprogram/VB
''/''
with/IN
shows/NNS
for/IN
an/DT
audience/NN
that/WDT
is/VBZ
virtually/RB
ignored/VBN
in/IN
that/DT
time/NN
period/NN
:/:
adults/NNS
./.
``/``
There/EX
is/VBZ
talk/NN
of/IN
some/DT
revamping/VBG
and/CC
we/PRP
're/VBP
certainly/RB
heading/VBG
in/IN
the/DT
direction/NN
of/IN
less/JJR
and/CC
less/JJR
animation/NN
,/,
''/''
said/VBD
Joseph/NNP
S./NNP
Cicero/NNP
,/,
vice/NN
president/NN
of/IN
finance/NN
and/CC
administration/NN
for/IN
National/NNP
Broadcasting/NNP
Co./NNP
,/,
a/DT
unit/NN
of/IN
General/NNP
Electric/NNP
Co/NNP
./.
Mr./NNP
Cicero/NNP
said/VBD
that/IN
NBC/NNP
Entertainment/NNP
president/NN
Brandon/NNP
Tartikoff/NNP
,/,
who/WP
declined/VBD
to/TO
be/VB
interviewed/VBN
,/,
is/VBZ
``/``
looking/VBG
at/IN
options/NNS
now/RB
and/CC
may/MD
put/VB
some/DT
things/NNS
into/IN
the/DT
schedule/NN
by/IN
mid-season/NN
./.
''/''
He/PRP
declined/VBD
to/TO
elaborate/VB
./.
NBC/NNP
's/POS
options/NNS
could/MD
range/VB
from/IN
news-oriented/JJ
programming/NN
to/TO
sports/NNS
shows/NNS
,/,
although/IN
the/DT
network/NN
declined/VBD
to/TO
comment/VB
./.
One/CD
major/JJ
NBC/NNP
affiliate/NN
,/,
KCRA/NNP
in/IN
Sacramento/NNP
,/,
plans/VBZ
to/TO
cancel/VB
the/DT
NBC/NNP
Saturday/NNP
morning/NN
line-up/NN
as/IN
of/IN
January/NNP
and/CC
replace/VB
it/PRP
with/IN
a/DT
local/JJ
newscast/NN
./.
The/DT
one-hour/JJ
program/NN
will/MD
be/VB
repeated/VBN
with/IN
updates/NNS
throughout/IN
Saturday/NNP
mornings/NNS
./.
``/``
We/PRP
feel/VBP
there/EX
is/VBZ
an/DT
opportunity/NN
for/IN
an/DT
audience/NN
that/WDT
is/VBZ
not/RB
being/VBG
served/VBN
by/IN
any/DT
network/NN
,/,
so/IN
we/PRP
want/VBP
to/TO
take/VB
the/DT
lead/NN
,/,
''/''
says/VBZ
KCRA/NNP
's/POS
general/JJ
manager/NN
,/,
John/NNP
Kueneke/NNP
./.
``/``
We/PRP
do/VBP
n't/RB
need/VB
cartoons/NNS
anymore/RB
./.
They/PRP
only/RB
accounted/VBD
for/IN
5/CD
%/NN
,/,
at/IN
best/JJS
,/,
of/IN
the/DT
station/NN
's/POS
total/JJ
revenues/NNS
./.
''/''
An/DT
NBC/NNP
spokesman/NN
says/VBZ
the/DT
network/NN
will/MD
``/``
closely/RB
monitor/VB
''/''
the/DT
Sacramento/NNP
situation/NN
,/,
and/CC
says/VBZ
it/PRP
is/VBZ
the/DT
only/JJ
station/NN
to/TO
defect/VB
./.
Spokesmen/NNS
for/IN
the/DT
television/NN
networks/NNS
of/IN
CBS/NNP
Inc./NNP
and/CC
Capital/NNP
Cities\/ABC/NNP
Inc./NNP
,/,
say/VBP
there/EX
are/VBP
no/DT
plans/NNS
to/TO
alter/VB
the/DT
children/NNS
's/POS
line-up/NN
on/IN
Saturday/NNP
mornings/NNS
./.
The/DT
youthful/JJ
audience/NN
for/IN
Saturday/NNP
programming/NN
is/VBZ
no/DT
longer/RB
dependent/JJ
on/IN
the/DT
networks/NNS
./.
There/EX
has/VBZ
been/VBN
a/DT
surge/NN
in/IN
syndicated/VBN
children/NNS
's/POS
shows/NNS
to/TO
independent/JJ
stations/NNS
,/,
as/RB
well/RB
as/IN
competition/NN
from/IN
videocassettes/NNS
for/IN
kids/NNS
and/CC
from/IN
cable/NN
outlets/NNS
such/JJ
as/IN
Nickelodeon/NNP
and/CC
the/DT
Disney/NNP
Channel/NNP
./.
At/IN
the/DT
same/JJ
time/NN
,/,
there/EX
appears/VBZ
to/TO
be/VB
a/DT
market/NN
for/IN
news-oriented/JJ
programming/NN
;/:
Turner/NNP
Broadcasting/NNP
System/NNP
Inc./NNP
's/POS
Cable/NNP
News/NNP
Network/NNP
has/VBZ
its/PRP$
highest/JJS
ratings/NNS
,/,
outside/IN
of/IN
prime/JJ
time/NN
,/,
on/IN
Saturday/NNP
mornings/NNS
./.
NBC/NNP
has/VBZ
on/IN
previous/JJ
occasions/NNS
considered/VBN
replacing/VBG
cartoons/NNS
with/IN
a/DT
Saturday/NNP
version/NN
of/IN
``/``
Today/NNP
,/,
''/''
which/WDT
is/VBZ
produced/VBN
by/IN
NBC/NNP
News/NNP
./.
The/DT
network/NN
's/POS
own/JJ
production/NN
company/NN
,/,
NBC/NNP
Productions/NNPS
,/,
supplies/VBZ
a/DT
half-hour/JJ
family-oriented/JJ
show/NN
titled/VBN
``/``
Saved/NNP
By/NNP
The/NNP
Bell/NNP
./.
''/''
NBC/NNP
Productions/NNPS
or/CC
NBC/NNP
News/NNP
could/MD
supply/VB
the/DT
network/NN
with/IN
other/JJ
Saturday/NNP
morning/NN
shows/NNS
,/,
a/DT
move/NN
that/WDT
would/MD
control/VB
costs/NNS
./.
Animated/JJ
shows/NNS
,/,
which/WDT
are/VBP
made/VBN
by/IN
outside/JJ
production/NN
companies/NNS
,/,
cost/VBD
the/DT
network/NN
about/IN
$/$
300,000/CD
per/IN
episode/NN
./.
Rohm/NNP
&/CC
Haas/NNP
Co./NNP
said/VBD
third-quarter/NN
net/NN
income/NN
skidded/VBD
35/CD
%/NN
to/TO
$/$
32.6/CD
million/CD
,/,
or/CC
49/CD
cents/NNS
a/DT
share/NN
./.
In/IN
the/DT
year-earlier/JJ
quarter/NN
,/,
the/DT
chemicals/NNS
company/NN
had/VBD
net/NN
of/IN
$/$
49.8/CD
million/CD
,/,
or/CC
75/CD
cents/NNS
a/DT
share/NN
./.
Sales/NNS
were/VBD
$/$
623/CD
million/CD
,/,
up/IN
0.5/CD
%/NN
from/IN
$/$
619.8/CD
million/CD
a/DT
year/NN
ago/IN
./.
Rohm/NNP
&/CC
Haas/NNP
,/,
which/WDT
plans/VBZ
to/TO
start/VB
operating/VBG
seven/CD
new/JJ
production/NN
units/NNS
this/DT
year/NN
,/,
attributed/VBD
the/DT
profit/NN
slide/NN
partly/RB
to/TO
higher/JJR
start-up/JJ
expense/NN
./.
The/DT
company/NN
also/RB
cited/VBD
the/DT
stronger/JJR
dollar/NN
,/,
which/WDT
cuts/VBZ
the/DT
value/NN
of/IN
overseas/JJ
profit/NN
when/WRB
it/PRP
is/VBZ
translated/VBN
into/IN
dollars/NNS
./.
In/IN
addition/NN
,/,
the/DT
company/NN
said/VBD
,/,
it/PRP
was/VBD
hurt/VBN
by/IN
higher/JJR
than/IN
previous-year/JJ
costs/NNS
for/IN
raw/JJ
materials/NNS
,/,
though/IN
those/DT
costs/NNS
have/VBP
declined/VBN
since/IN
the/DT
second/JJ
quarter/NN
./.
Incrementally/RB
higher/JJR
production/NN
of/IN
those/DT
chemicals/NNS
which/WDT
remain/VBP
in/IN
heavy/JJ
demand/NN
also/RB
has/VBZ
forced/VBN
up/IN
costs/NNS
,/,
such/JJ
as/IN
overtime/NN
pay/NN
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Rohm/NNP
&/CC
Haas/NNP
net/NN
totaled/VBD
$/$
155/CD
million/CD
,/,
or/CC
$/$
2.33/CD
a/DT
share/NN
,/,
down/IN
17/CD
%/NN
from/IN
$/$
187.8/CD
million/CD
,/,
or/CC
$/$
2.82/CD
a/DT
share/NN
,/,
a/DT
year/NN
ago/IN
./.
Sales/NNS
rose/VBD
5.2/CD
%/NN
to/TO
$/$
2.04/CD
billion/CD
from/IN
$/$
1.94/CD
billion/CD
the/DT
previous/JJ
year/NN
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Rohm/NNP
&/CC
Haas/NNP
closed/VBD
at/IN
$/$
33/CD
a/DT
share/NN
,/,
down/IN
$/$
1.75/CD
./.
Michael/NNP
A./NNP
Gaskin/NNP
,/,
55/CD
years/NNS
old/JJ
,/,
was/VBD
named/VBN
president/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
this/DT
manufacturer/NN
of/IN
industrial/JJ
robots/NNS
,/,
succeeding/VBG
Walter/NNP
K./NNP
Weisel/NNP
./.
Mr./NNP
Weisel/NNP
,/,
49/CD
,/,
resigned/VBD
as/IN
president/NN
and/CC
chief/NN
executive/NN
and/CC
will/MD
work/VB
on/IN
special/JJ
projects/NNS
,/,
said/VBD
John/NNP
J./NNP
Wallace/NNP
,/,
chairman/NN
./.
Mr./NNP
Gaskin/NNP
formerly/RB
was/VBD
president/NN
and/CC
chief/NN
executive/NN
of/IN
Taylor/NNP
&/CC
Gaskin/NNP
Inc./NNP
and/CC
was/VBD
a/DT
director/NN
of/IN
Prab/NNP
Robots/NNP
since/IN
1985/CD
./.
Stephen/NNP
N./NNP
Wertheimer/NNP
was/VBD
named/VBN
managing/VBG
director/NN
and/CC
group/NN
head/NN
of/IN
investment/NN
banking/NN
in/IN
Asia/NNP
,/,
based/VBN
in/IN
Tokyo/NNP
./.
Mr./NNP
Wertheimer/NNP
,/,
38/CD
years/NNS
old/JJ
,/,
had/VBD
been/VBN
a/DT
first/JJ
vice/NN
president/NN
in/IN
the/DT
industrial/JJ
group/NN
in/IN
investment/NN
banking/NN
./.
He/PRP
succeeds/VBZ
Everett/NNP
Meyers/NNP
,/,
who/WP
resigned/VBD
in/IN
May/NNP
./.
This/DT
is/VBZ
written/VBN
to/TO
correct/VB
a/DT
misquotation/NN
in/IN
your/PRP$
Oct./NN
3/CD
article/NN
``/``
Deaths/NNP
From/IN
Advanced/NNP
Colon/NNP
Cancer/NNP
Can/MD
Be/VB
Reduced/NNP
by/IN
Using/VBG
Two/CD
Drugs/NNP
./.
''/''
In/IN
this/DT
article/NN
,/,
I/PRP
was/VBD
alleged/VBN
to/TO
have/VB
said/VBN
,/,
``/``
Any/DT
patient/NN
with/IN
high-risk/JJ
colon/NN
cancer/NN
is/VBZ
really/RB
getting/VBG
short/JJ
shrift/NN
if/IN
he/PRP
's/VBZ
not/RB
getting/VBG
this/DT
therapy/NN
./.
''/''
I/PRP
did/VBD
n't/RB
say/VB
this/DT
,/,
and/CC
I/PRP
'm/VBP
totally/RB
opposed/VBN
to/TO
the/DT
philosophy/NN
expressed/VBN
by/IN
the/DT
quote/NN
./.
I/PRP
have/VBP
not/RB
offered/VBN
and/CC
will/MD
not/RB
offer/VB
routine/JJ
therapy/NN
with/IN
the/DT
two/CD
drugs/NNS
,/,
levamisole/NN
and/CC
5-fluorouracil/NN
,/,
to/TO
any/DT
of/IN
my/PRP$
colon-cancer/NN
patients/NNS
./.
With/IN
this/DT
treatment/NN
we/PRP
have/VBP
reduced/VBN
deaths/NNS
in/IN
high-risk/JJ
colon/NN
cancer/NN
by/IN
one-third/NN
--/:
but/CC
this/DT
leaves/VBZ
the/DT
two-thirds/NNS
who/WP
are/VBP
dying/VBG
of/IN
cancer/NN
./.
This/DT
is/VBZ
not/RB
nearly/RB
good/JJ
enough/RB
./.
I/PRP
believe/VBP
any/DT
physician/NN
who/WP
truly/RB
cares/VBZ
about/IN
cancer/NN
patients/NNS
,/,
both/DT
today/NN
and/CC
tomorrow/NN
,/,
should/MD
offer/VB
the/DT
hope/NN
of/IN
something/NN
better/JJR
than/IN
that/DT
./.
My/PRP$
statement/NN
,/,
read/VBD
verbatim/RB
from/IN
a/DT
printed/VBN
text/NN
available/JJ
to/TO
all/DT
reporters/NNS
attending/VBG
the/DT
National/NNP
Cancer/NNP
Institute/NNP
news/NN
conference/NN
,/,
was/VBD
the/DT
following/VBG
:/:
``/``
New/JJ
clinical/JJ
trials/NNS
are/VBP
already/RB
in/IN
operation/NN
seeking/VBG
to/TO
improve/VB
these/DT
results/NNS
./.
These/DT
research/NN
protocols/NNS
offer/VBP
to/TO
the/DT
patient/NN
not/RB
only/RB
the/DT
very/RB
best/JJS
therapy/NN
which/WDT
we/PRP
have/VBP
established/VBN
today/NN
but/CC
also/RB
the/DT
hope/NN
of/IN
something/NN
still/RB
better/JJR
./.
I/PRP
feel/VBP
any/DT
patient/NN
with/IN
high-risk/JJ
cancer/NN
is/VBZ
getting/VBG
short/JJ
shrift/NN
if/IN
he/PRP
is/VBZ
not/RB
offered/VBN
this/DT
opportunity/NN
./.
''/''
We/PRP
have/VBP
very/RB
exciting/JJ
prospects/NNS
for/IN
far/RB
more/RBR
impressive/JJ
advances/NNS
in/IN
the/DT
treatment/NN
of/IN
colon/NN
cancer/NN
during/IN
the/DT
years/NNS
immediately/RB
ahead/RB
./.
This/DT
hope/NN
,/,
however/RB
,/,
will/MD
never/RB
be/VB
realized/VBN
if/IN
we/PRP
use/VBP
levamisole/NN
and/CC
5-fluorouracil/NN
as/IN
a/DT
stopping/NN
point/NN
./.
Charles/NNP
G./NNP
Moertel/NNP
M.D/NNP
./.
Mayo/NNP
Clinic/NNP
Rochester/NNP
,/,
Minn/NNP
./.
The/DT
oil/NN
and/CC
auto/NN
industries/NNS
,/,
united/VBN
in/IN
their/PRP$
dislike/NN
of/IN
President/NNP
Bush/NNP
's/POS
proposal/NN
for/IN
cars/NNS
that/WDT
run/VBP
on/IN
alternative/JJ
fuels/NNS
,/,
announced/VBD
a/DT
joint/JJ
research/NN
program/NN
that/WDT
could/MD
turn/VB
up/IN
a/DT
cleaner-burning/JJ
gasoline/NN
./.
Officials/NNS
of/IN
the/DT
Big/NNP
Three/CD
auto/NN
makers/NNS
and/CC
14/CD
petroleum/NN
companies/NNS
said/VBD
they/PRP
are/VBP
setting/VBG
out/IN
to/TO
find/VB
the/DT
most/RBS
cost-effective/JJ
fuel/NN
for/IN
reducing/VBG
cities/NNS
'/POS
air-pollution/NN
problems/NNS
,/,
with/IN
no/DT
bias/NN
toward/IN
any/DT
fuel/NN
in/IN
particular/NN
./.
However/RB
,/,
their/PRP$
search/NN
notably/RB
wo/MD
n't/RB
include/VB
natural/JJ
gas/NN
or/CC
pure/JJ
methanol/NN
--/:
the/DT
two/CD
front-running/JJ
alternative/JJ
fuels/NNS
--/:
in/IN
tests/NNS
to/TO
be/VB
completed/VBN
by/IN
next/JJ
summer/NN
./.
Instead/RB
,/,
the/DT
tests/NNS
will/MD
focus/VB
heavily/RB
on/IN
new/JJ
blends/NNS
of/IN
gasoline/NN
,/,
which/WDT
are/VBP
still/RB
undeveloped/JJ
but/CC
which/WDT
the/DT
petroleum/NN
industry/NN
has/VBZ
been/VBN
touting/VBG
as/IN
a/DT
solution/NN
for/IN
automobile/NN
pollution/NN
that/WDT
is/VBZ
choking/VBG
urban/JJ
areas/NNS
./.
Environmentalists/NNS
criticized/VBD
the/DT
program/NN
as/IN
merely/RB
a/DT
public-relations/NNS
attempt/NN
to/TO
head/VB
off/IN
a/DT
White/NNP
House/NNP
proposal/NN
to/TO
require/VB
a/DT
million/CD
cars/NNS
a/DT
year/NN
that/WDT
run/VBD
on/IN
cleaner-burning/JJ
fuels/NNS
by/IN
1997/CD
./.
While/IN
major/JJ
oil/NN
companies/NNS
have/VBP
been/VBN
experimenting/VBG
with/IN
cleaner-burning/JJ
gasoline/NN
blends/NNS
for/IN
years/NNS
,/,
only/RB
Atlantic/NNP
Richfield/NNP
Co./NNP
is/VBZ
now/RB
marketing/VBG
a/DT
lower-emission/NN
gasoline/NN
for/IN
older/JJR
cars/NNS
currently/RB
running/VBG
on/IN
leaded/JJ
fuel/NN
./.
The/DT
initial/JJ
$/$
11/CD
million/CD
research/NN
program/NN
will/MD
conduct/VB
the/DT
most/RBS
extensive/JJ
testing/NN
to/TO
date/NN
of/IN
reformulated/VBN
gasolines/NNS
,/,
said/VBD
Joe/NNP
Colucci/NNP
,/,
head/NN
of/IN
fuels/NNS
and/CC
lubricants/NNS
at/IN
General/NNP
Motors/NNPS
Corp./NNP
research/NN
laboratories/NNS
./.
It/PRP
will/MD
compare/VB
21/CD
different/JJ
blends/NNS
of/IN
gasolines/NNS
with/IN
three/CD
mixtures/NNS
of/IN
up/IN
to/TO
85/CD
%/NN
methanol/NN
./.
A/DT
second/JJ
phase/NN
of/IN
research/NN
,/,
which/WDT
is/VBZ
still/RB
being/VBG
planned/VBN
,/,
will/MD
test/VB
reformulated/VBN
gasolines/NNS
on/IN
newer/JJR
engine/NN
technologies/NNS
now/RB
being/VBG
developed/VBN
for/IN
use/NN
in/IN
1992/CD
or/CC
1993/CD
cars/NNS
./.
There/EX
was/VBD
no/DT
cost/NN
estimate/NN
for/IN
the/DT
second/JJ
phase/NN
./.
``/``
The/DT
whole/JJ
idea/NN
here/RB
is/VBZ
the/DT
automobile/NN
and/CC
oil/NN
companies/NNS
have/VBP
joint/JJ
customers/NNS
,/,
''/''
said/VBD
Keith/NNP
McHenry/NNP
,/,
a/DT
senior/JJ
vice/NN
president/NN
of/IN
technology/NN
at/IN
Amoco/NNP
Corp/NNP
./.
``/``
And/CC
we/PRP
are/VBP
looking/VBG
for/IN
the/DT
most/RBS
cost-effective/JJ
way/NN
to/TO
clean/VB
up/IN
the/DT
air/NN
./.
''/''
But/CC
David/NNP
Hawkins/NNP
,/,
an/DT
environmental/JJ
lawyer/NN
with/IN
the/DT
Natural/NNP
Resources/NNPS
Defense/NNP
Council/NNP
,/,
said/VBD
the/DT
research/NN
appears/VBZ
merely/RB
to/TO
be/VB
a/DT
way/NN
to/TO
promote/VB
reformulated/VBN
gasoline/NN
./.
Oil/NN
and/CC
auto/NN
companies/NNS
supported/VBD
a/DT
move/NN
on/IN
Capitol/NNP
Hill/NNP
last/JJ
week/NN
to/TO
gut/VB
Mr./NNP
Bush/NNP
's/POS
plans/NNS
to/TO
require/VB
auto/NN
makers/NNS
to/TO
begin/VB
selling/VBG
alternative-fueled/JJ
cars/NNS
by/IN
1995/CD
./.
Instead/RB
,/,
a/DT
House/NNP
subcommittee/NN
adopted/VBD
a/DT
clean-fuels/NNS
program/NN
that/WDT
specifically/RB
mentions/VBZ
reformulated/VBN
gasoline/NN
as/IN
an/DT
alternative/NN
./.
The/DT
Bush/NNP
administration/NN
has/VBZ
said/VBN
it/PRP
will/MD
try/VB
to/TO
resurrect/VB
its/PRP$
plan/NN
when/WRB
the/DT
House/NNP
Energy/NNP
and/CC
Commerce/NNP
Committee/NNP
takes/VBZ
up/IN
a/DT
comprehensive/JJ
clean-air/JJ
bill/NN
./.
William/NNP
Seidman/NNP
,/,
chairman/NN
of/IN
the/DT
Federal/NNP
Deposit/NNP
Insurance/NNP
Corp./NNP
,/,
said/VBD
Lincoln/NNP
Savings/NNP
&/CC
Loan/NNP
Association/NNP
should/MD
have/VB
been/VBN
seized/VBN
by/IN
the/DT
government/NN
in/IN
1986/CD
to/TO
contain/VB
losses/NNS
that/IN
he/PRP
estimated/VBD
will/MD
cost/VB
taxpayers/NNS
as/RB
much/RB
as/IN
$/$
2/CD
billion/CD
./.
Mr./NNP
Seidman/NNP
,/,
who/WP
has/VBZ
been/VBN
the/DT
nation/NN
's/POS
top/JJ
bank/NN
regulator/NN
,/,
inherited/VBD
the/DT
problems/NNS
of/IN
Lincoln/NNP
,/,
based/VBN
in/IN
Irvine/NNP
,/,
Calif./NNP
,/,
after/IN
his/PRP$
regulatory/JJ
role/NN
was/VBD
expanded/VBN
by/IN
the/DT
new/JJ
savings-and-loan/JJ
bailout/NN
law/NN
./.
He/PRP
made/VBD
his/PRP$
comments/NNS
before/IN
House/NNP
Banking/NNP
Committee/NNP
hearings/NNS
to/TO
investigate/VB
what/WP
appears/VBZ
to/TO
be/VB
the/DT
biggest/JJS
thrift/NN
disaster/NN
in/IN
a/DT
scandal-ridden/JJ
industry/NN
./.
The/DT
inquiry/NN
also/RB
will/MD
cover/VB
the/DT
actions/NNS
of/IN
Charles/NNP
Keating/NNP
Jr./NNP
,/,
who/WP
is/VBZ
chairman/NN
of/IN
American/NNP
Continental/NNP
Corp./NNP
,/,
Lincoln/NNP
's/POS
parent/NN
,/,
and/CC
who/WP
contributed/VBD
heavily/RB
to/TO
several/JJ
U.S./NNP
senators/NNS
./.
Mr./NNP
Seidman/NNP
told/VBD
the/DT
committee/NN
that/IN
the/DT
Resolution/NNP
Trust/NNP
Corp./NNP
,/,
the/DT
agency/NN
created/VBD
to/TO
sell/VB
sick/JJ
thrifts/NNS
,/,
has/VBZ
studied/VBN
Lincoln/NN
's/POS
examination/NN
reports/NNS
by/IN
former/JJ
regulators/NNS
dating/VBG
back/RB
to/TO
1986/CD
./.
``/``
My/PRP$
staff/NN
indicated/VBD
that/IN
had/VBD
we/PRP
made/VBN
such/JJ
findings/NNS
in/IN
one/CD
of/IN
our/PRP$
own/JJ
institutions/NNS
,/,
we/PRP
would/MD
have/VB
sought/VBN
an/DT
immediate/JJ
cease-and-desist/JJ
order/NN
to/TO
stop/VB
the/DT
hazardous/JJ
operations/NNS
,/,
''/''
Mr./NNP
Seidman/NNP
said/VBD
./.
When/WRB
Lincoln/NNP
was/VBD
seized/VBN
by/IN
the/DT
government/NN
,/,
for/IN
example/NN
,/,
15/CD
%/NN
of/IN
its/PRP$
loans/NNS
,/,
or/CC
$/$
250/CD
million/CD
,/,
were/VBD
to/TO
borrowers/NNS
who/WP
were/VBD
buying/VBG
real/JJ
estate/NN
from/IN
one/CD
of/IN
American/NNP
Continental/NNP
's/POS
50/CD
other/JJ
subsidiaries/NNS
,/,
according/VBG
to/TO
Mr./NNP
Seidman/NNP
./.
But/CC
the/DT
government/NN
did/VBD
n't/RB
step/VB
in/IN
until/IN
six/CD
months/NNS
ago/IN
,/,
when/WRB
thrift/NN
officials/NNS
put/VBD
Lincoln/NNP
into/IN
conservatorship/NN
--/:
the/DT
day/NN
after/IN
American/NNP
Continental/NNP
filed/VBD
for/IN
Chapter/NN
11/CD
bankruptcy/NN
protection/NN
from/IN
creditors/NNS
./.
The/DT
bankruptcy/NN
filing/NN
,/,
the/DT
government/NN
has/VBZ
charged/VBN
in/IN
a/DT
$/$
1.1/CD
billion/CD
civil/JJ
lawsuit/NN
,/,
was/VBD
part/NN
of/IN
a/DT
pattern/NN
to/TO
shift/VB
insured/VBN
deposits/NNS
to/TO
the/DT
parent/NN
company/NN
,/,
which/WDT
used/VBD
the/DT
deposits/NNS
as/IN
a/DT
cache/NN
for/IN
real-estate/NN
deals/NNS
./.
The/DT
deposits/NNS
that/WDT
have/VBP
been/VBN
transferred/VBN
to/TO
other/JJ
subsidiaries/NNS
are/VBP
now/RB
under/IN
the/DT
jurisdiction/NN
of/IN
the/DT
bankruptcy/NN
court/NN
./.
``/``
I/PRP
think/VBP
it/PRP
's/VBZ
fairly/RB
clear/JJ
Mr./NNP
Keating/NNP
regulators/NNS
were/VBD
set/VBN
to/TO
seize/VB
Lincoln/NNP
,/,
Mr./NNP
Seidman/NNP
said/VBD
./.
Further/JJ
investigation/NN
,/,
he/PRP
said/VBD
,/,
may/MD
result/VB
in/IN
further/JJ
actions/NNS
against/IN
Lincoln/NNP
's/POS
executives/NNS
,/,
said/VBD
Mr./NNP
Seidman/NNP
,/,
``/``
including/VBG
fraud/NN
actions/NNS
./.
''/''
Mr./NNP
Keating/NNP
,/,
for/IN
his/PRP$
part/NN
,/,
has/VBZ
filed/VBN
suit/NN
alleging/VBG
that/IN
regulators/NNS
unlawfully/RB
seized/VBD
the/DT
thrift/NN
./.
Leonard/NNP
Bickwit/NNP
,/,
an/DT
attorney/NN
in/IN
Washington/NNP
for/IN
Mr./NNP
Keating/NNP
,/,
declined/VBD
to/TO
comment/VB
on/IN
the/DT
hearings/NNS
,/,
except/IN
to/TO
say/VB
,/,
``/``
We/PRP
will/MD
be/VB
responding/VBG
comprehensively/RB
in/IN
several/JJ
forums/NNS
to/TO
each/DT
of/IN
these/DT
allegations/NNS
at/IN
the/DT
appropriate/JJ
time/NN
./.
''/''
Lincoln/NNP
's/POS
treatment/NN
by/IN
former/JJ
thrift/NN
regulators/NNS
,/,
in/IN
an/DT
agency/NN
disbanded/VBN
by/IN
the/DT
new/JJ
law/NN
,/,
has/VBZ
proved/VBN
embarrassing/VBG
for/IN
five/CD
senators/NNS
who/WP
received/VBD
thousands/NNS
of/IN
dollars/NNS
in/IN
campaign/NN
contributions/NNS
from/IN
Mr./NNP
Keating/NNP
./.
Mr./NNP
Seidman/NNP
said/VBD
yesterday/NN
,/,
for/IN
example/NN
,/,
that/IN
Sen./NNP
Dennis/NNP
DeConcini/NNP
D./NNP
,/,
Ariz./NNP
who/WP
received/VBD
$/$
48,100/CD
in/IN
contributions/NNS
from/IN
Mr./NNP
Keating/NNP
,/,
phoned/VBD
Mr./NNP
Seidman/NNP
to/TO
request/VB
that/IN
he/PRP
push/VB
for/IN
a/DT
sale/NN
of/IN
Lincoln/NNP
before/IN
it/PRP
would/MD
be/VB
seized/VBN
./.
After/IN
the/DT
government/NN
lawsuit/NN
was/VBD
filed/VBN
against/IN
Lincoln/NNP
,/,
Sen./NNP
DeConcini/NNP
returned/VBD
the/DT
campaign/NN
contributions/NNS
./.
The/DT
senator/NN
's/POS
spokesman/NN
said/VBD
yesterday/NN
that/IN
he/PRP
pushed/VBD
for/IN
the/DT
sale/NN
of/IN
Lincoln/NNP
because/IN
``/``
hundreds/NNS
of/IN
Arizona/NNP
jobs/NNS
Lincoln/NNP
the/DT
line/NN
./.
''/''
Senate/NNP
Banking/NNP
Committee/NNP
Chairman/NNP
Donald/NNP
Riegle/NNP
D./NNP
,/,
Mich/NNP
./.
contributions/NNS
he/PRP
received/VBD
from/IN
Mr./NNP
Keating/NNP
a/DT
year/NN
ago/IN
./.
Sens./NNP
John/NNP
Glenn/NNP
D./NNP
,/,
Ohio/NNP
John/NNP
McCain/NNP
,/,
(/(
R./NNP
,/,
Ariz./NNP
Alan/NNP
Cranston/NNP
D./NNP
,/,
Calif./NNP
substantial/JJ
contributions/NNS
from/IN
Mr./NNP
Keating/NNP
and/CC
sought/VBD
to/TO
intervene/VB
on/IN
behalf/NN
of/IN
Lincoln/NNP
./.
House/NNP
Banking/NNP
Committee/NNP
Chairman/NNP
Henry/NNP
Gonzalez/NNP
D./NNP
,/,
Texas/NNP
Sen./NNP
Cranston/NNP
volunteered/VBD
to/TO
appear/VB
before/IN
the/DT
House/NNP
committee/NN
,/,
if/IN
necessary/JJ
./.
But/CC
a/DT
committee/NN
staff/NN
member/NN
said/VBD
the/DT
panel/NN
is/VBZ
unlikely/JJ
to/TO
pursue/VB
closely/RB
the/DT
role/NN
of/IN
the/DT
senators/NNS
./.
At/IN
the/DT
hearing/NN
,/,
Mr./NNP
Seidman/NNP
said/VBD
the/DT
RTC/NNP
has/VBZ
already/RB
pumped/VBN
$/$
729/CD
million/CD
into/IN
Lincoln/NNP
for/IN
liquidity/NN
./.
He/PRP
also/RB
held/VBD
out/IN
little/JJ
hope/NN
of/IN
restitution/NN
for/IN
purchasers/NNS
of/IN
$/$
225/CD
million/CD
in/IN
American/NNP
Continental/NNP
subordinated/VBD
debt/NN
./.
Some/DT
of/IN
those/DT
debtholders/NNS
have/VBP
filed/VBN
a/DT
suit/NN
,/,
saying/VBG
they/PRP
believed/VBD
they/PRP
were/VBD
buying/VBG
government-insured/JJ
certificates/NNS
of/IN
deposit/NN
./.
``/``
We/PRP
have/VBP
no/DT
plans/NNS
at/IN
this/DT
time/NN
to/TO
pay/VB
off/IN
those/DT
notes/NNS
,/,
''/''
he/PRP
said/VBD
./.
Eastern/NNP
Airlines/NNP
'/POS
creditors/NNS
committee/NN
,/,
unhappy/JJ
with/IN
the/DT
carrier/NN
's/POS
plans/NNS
for/IN
emerging/VBG
from/IN
bankruptcy-law/NN
proceedings/NNS
,/,
asked/VBD
its/PRP$
own/JJ
experts/NNS
to/TO
devise/VB
alternate/JJ
approaches/NNS
to/TO
a/DT
reorganization/NN
./.
Representatives/NNS
of/IN
the/DT
accounting/VBG
firm/NN
of/IN
Ernst/NNP
&/CC
Young/NNP
and/CC
the/DT
securities/NNS
firm/NN
of/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
,/,
hired/VBN
by/IN
creditors/NNS
to/TO
consult/VB
on/IN
Eastern/NNP
's/POS
financial/JJ
plans/NNS
,/,
told/VBD
the/DT
committee/NN
in/IN
a/DT
private/JJ
meeting/NN
yesterday/NN
that/IN
Eastern/NNP
's/POS
latest/JJS
plan/NN
to/TO
emerge/VB
from/IN
bankruptcy-law/NN
protection/NN
is/VBZ
far/RB
riskier/JJR
than/IN
an/DT
earlier/JJR
one/CD
which/WDT
won/VBD
the/DT
creditors/NNS
'/POS
approval/NN
./.
According/VBG
to/TO
one/CD
person/NN
present/JJ
at/IN
the/DT
meeting/NN
,/,
Eastern/NNP
's/POS
new/JJ
plan/NN
is/VBZ
financially/RB
``/``
overly/RB
optimistic/JJ
./.
''/''
Asked/VBN
about/IN
the/DT
consultants/NNS
'/POS
reports/NNS
,/,
an/DT
Eastern/NNP
spokeswoman/NN
said/VBD
``/``
we/PRP
totally/RB
disagree/VBP
./.
''/''
She/PRP
said/VBD
they/PRP
have/VBP
``/``

oversimplified/VBN
and/CC
made/VBN
some/DT
erroneous/JJ
assumptions/NNS
that/WDT
make/VBP
their/PRP$
analysis/NN
completely/RB
off-base/JJ
./.
''/''
At/IN
a/DT
later/JJ
news/NN
conference/NN
here/RB
,/,
Frank/NNP
Lorenzo/NNP
,/,
chairman/NN
of/IN
Eastern/NNP
's/POS
parent/NN
Texas/NNP
Air/NNP
Corp./NNP
,/,
said/VBD
Eastern/NNP
was/VBD
exceeding/VBG
its/PRP$
goals/NNS
for/IN
getting/VBG
back/NN
into/IN
operation/NN
and/CC
predicted/VBD
it/PRP
would/MD
emerge/VB
from/IN
Chapter/NN
11/CD
protection/NN
from/IN
creditors/NNS
early/RB
next/IN
year/NN
,/,
operating/VBG
with/IN
more/JJR
service/NN
than/IN
it/PRP
originally/RB
had/VBD
scheduled/VBN
./.
He/PRP
insisted/VBD
,/,
as/IN
he/PRP
has/VBZ
before/IN
,/,
that/IN
creditors/NNS
would/MD
be/VB
paid/VBN
in/IN
full/JJ
under/IN
the/DT
plan/NN
./.
Mr./NNP
Lorenzo/NNP
made/VBD
no/DT
mention/NN
of/IN
creditors/NNS
'/POS
negative/JJ
response/NN
to/TO
his/PRP$
plan/NN
./.
``/``
We/PRP
're/VBP
in/IN
the/DT
process/NN
of/IN
discussing/VBG
an/DT
amended/VBN
plan/NN
with/IN
the/DT
creditors/NNS
and/CC
anticipate/VBP
filing/VBG
that/IN
amended/VBN
plan/NN
shortly/RB
,/,
''/''
Mr./NNP
Lorenzo/NNP
told/VBD
reporters/NNS
./.
``/``
We/PRP
're/VBP
meeting/VBG
and/CC
surpassing/VBG
our/PRP$
goals/NNS
,/,
''/''
he/PRP
added/VBD
./.
In/IN
July/NNP
,/,
Eastern/NNP
and/CC
its/PRP$
creditors/NNS
agreed/VBD
on/IN
a/DT
reorganization/NN
plan/NN
that/WDT
called/VBD
for/IN
Eastern/NNP
to/TO
sell/VB
$/$
1.8/CD
billion/CD
in/IN
assets/NNS
and/CC
to/TO
emerge/VB
from/IN
bankruptcy-law/NN
protection/NN
at/IN
two-thirds/NNS
its/PRP$
former/JJ
size/NN
./.
But/CC
after/IN
selling/VBG
off/IN
pieces/NNS
such/JJ
as/IN
its/PRP$
East/NNP
Coast/NNP
shuttle/NN
,/,
its/PRP$
Philadelphia/NNP
hub/NN
and/CC
various/JJ
planes/NNS
,/,
Eastern/NNP
hit/VBD
a/DT
stumbling/VBG
block/NN
./.
It/PRP
could/MD
n't/RB
sell/VB
its/PRP$
South/NNP
American/NNP
routes/NNS
,/,
one/CD
of/IN
the/DT
major/JJ
assets/NNS
marked/VBN
for/IN
disposal/NN
./.
Those/DT
routes/NNS
,/,
valued/VBN
by/IN
the/DT
creditors/NNS
'/POS
professionals/NNS
at/IN
about/IN
$/$
400/CD
million/CD
,/,
were/VBD
to/TO
be/VB
sold/VBN
to/TO
AMR/NNP
Corp./NNP
's/POS
American/NNP
Airlines/NNPS
./.
A/DT
last-minute/JJ
snag/NN
in/IN
negotiations/NNS
with/IN
AMR/NNP
,/,
over/IN
an/DT
unrelated/JJ
lawsuit/NN
between/IN
American/NNP
and/CC
another/DT
Texas/NNP
Air/NNP
unit/NN
,/,
caused/VBD
the/DT
deal/NN
to/TO
collapse/VB
./.
Eastern/NNP
ultimately/RB
decided/VBD
it/PRP
would/MD
have/VB
to/TO
keep/VB
and/CC
operate/VB
the/DT
routes/NNS
itself/PRP
,/,
which/WDT
would/MD
leave/VB
it/PRP
with/IN
less/JJR
cash/NN
for/IN
its/PRP$
reorganization/NN
./.
It/PRP
also/RB
would/MD
leave/VB
Eastern/NNP
a/DT
bigger/JJR
carrier/NN
than/IN
the/DT
scaled-down/JJ
one/CD
proposed/VBN
under/IN
the/DT
initial/JJ
plan/NN
./.
Those/DT
changes/NNS
in/IN
its/PRP$
condition/NN
meant/VBD
the/DT
reorganization/NN
plan/NN
previously/RB
presented/VBN
to/TO
creditors/NNS
would/MD
have/VB
to/TO
be/VB
revamped/VBN
./.
Since/IN
then/RB
,/,
Eastern/NNP
has/VBZ
been/VBN
negotiating/VBG
with/IN
creditors/NNS
over/IN
revisions/NNS
,/,
but/CC
the/DT
creditors/NNS
committee/NN
has/VBZ
been/VBN
having/VBG
problems/NNS
with/IN
the/DT
revisions/NNS
./.
The/DT
committee/NN
has/VBZ
two/CD
groups/NNS
of/IN
experts/NNS
it/PRP
calls/VBZ
on/IN
to/TO
analyze/VB
Eastern/NNP
's/POS
plans/NNS
./.
Both/DT
said/VBD
the/DT
new/JJ
plan/NN
would/MD
n't/RB
work/VB
./.
Ernst/NNP
&/CC
Young/NNP
said/VBD
Eastern/NNP
's/POS
plans/NNS
will/MD
miss/VB
its/PRP$
projections/NNS
of/IN
earnings/NNS
before/IN
interest/NN
,/,
tax/NN
and/CC
depreciation/NN
by/IN
$/$
100/CD
million/CD
,/,
and/CC
that/IN
Eastern/NNP
's/POS
plan/NN
presented/VBD
no/DT
comfort/NN
level/NN
,/,
according/VBG
to/TO
a/DT
source/NN
present/NN
at/IN
yesterday/NN
's/POS
session/NN
./.
Experts/NNS
from/IN
Goldman/NNP
Sachs/NNP
estimated/VBD
Eastern/NNP
would/MD
miss/VB
the/DT
same/JJ
mark/NN
by/IN
$/$
120/CD
million/CD
to/TO
$/$
135/CD
million/CD
,/,
the/DT
source/NN
said/VBD
./.
The/DT
experts/NNS
said/VBD
they/PRP
expected/VBD
Eastern/NNP
would/MD
have/VB
to/TO
issue/VB
new/JJ
debt/NN
to/TO
cover/VB
its/PRP$
costs/NNS
,/,
and/CC
that/IN
it/PRP
would/MD
generate/VB
far/RB
less/JJR
cash/NN
than/IN
anticipated/VBN
./.
Other/JJ
costs/NNS
also/RB
would/MD
increase/VB
,/,
including/VBG
maintenance/NN
,/,
because/IN
Eastern/NNP
has/VBZ
an/DT
older/JJR
fleet/NN
./.
At/IN
the/DT
news/NN
conference/NN
,/,
Mr./NNP
Lorenzo/NNP
and/CC
Eastern/NNP
President/NNP
Phil/NNP
Bakes/NNP
presented/VBD
a/DT
far/JJ
rosier/JJR
assessment/NN
./.
Flanked/VBN
by/IN
flight/NN
attendants/NNS
,/,
pilots/NNS
and/CC
gate/NN
agents/NNS
dressed/VBN
in/IN
spiffy/JJ
new/JJ
blue/JJ
uniforms/NNS
,/,
they/PRP
said/VBD
Eastern/NNP
has/VBZ
exceeded/VBN
its/PRP$
operational/JJ
goals/NNS
and/CC
is/VBZ
filling/VBG
its/PRP$
seats/NNS
./.
Starting/VBG
next/JJ
month/NN
,/,
Eastern/NNP
will/MD
begin/VB
flying/VBG
775/CD
flights/NNS
daily/RB
instead/RB
of/IN
the/DT
previously/RB
announced/VBN
700/CD
,/,
they/PRP
said/VBD
./.
Mr./NNP
Bakes/NNP
declined/VBD
to/TO
give/VB
out/IN
Eastern/NNP
's/POS
daily/JJ
losses/NNS
,/,
but/CC
said/VBD
he/PRP
did/VBD
n't/RB
expect/VB
Eastern/NNP
would/MD
have/VB
to/TO
dip/VB
into/IN
the/DT
cash/NN
from/IN
asset/NN
sales/NNS
currently/RB
held/VBN
in/IN
escrow/NN
./.
These/DT
accounts/NNS
hold/VBP
several/JJ
hundred/CD
million/CD
dollars/NNS
,/,
primarily/RB
from/IN
asset/NN
sales/NNS
./.
The/DT
plan/NN
Eastern/NNP
hopes/VBZ
to/TO
pursue/VB
,/,
he/PRP
said/VBD
,/,
calls/NNS
for/IN
Eastern/NNP
to/TO
have/VB
$/$
390/CD
million/CD
in/IN
cash/NN
by/IN
year/NN
's/POS
end/NN
./.
Both/DT
he/PRP
and/CC
Mr./NNP
Lorenzo/NNP
predicted/VBD
that/DT
plan/NN
might/MD
be/VB
confirmed/VBN
in/IN
January/NNP
./.
As/IN
to/TO
negotiations/NNS
with/IN
creditors/NNS
,/,
Mr./NNP
Lorenzo/NNP
said/VBD
in/IN
remarks/NNS
after/IN
the/DT
conference/NN
``/``
we/PRP
'll/MD
have/VB
to/TO
see/VB
how/WRB
they/PRP
talks/NNS
''/''
However/RB
,/,
he/PRP
added/VBD
,/,
``/``
it/PRP
's/VBZ
not/RB
a/DT
requirement/NN
that/IN
the/DT
plan/NN
be/VB
accepted/VBN
by/IN
creditors/NNS
./.
It/PRP
must/MD
be/VB
accepted/VBN
by/IN
the/DT
court/NN
./.
''/''
Under/IN
bankruptcy/NN
law/NN
,/,
Eastern/NNP
has/VBZ
exclusive/JJ
rights/NNS
for/IN
a/DT
certain/JJ
period/NN
to/TO
develop/VB
its/PRP$
own/JJ
reorganization/NN
plan/NN
./.
That/DT
deadline/NN
has/VBZ
been/VBN
extended/VBN
once/RB
and/CC
could/MD
be/VB
extended/VBN
again/RB
./.
If/IN
Eastern/NNP
can/MD
get/VB
creditor/NN
support/NN
,/,
court/NN
confirmation/NN
of/IN
its/PRP$
plan/NN
could/MD
be/VB
relatively/RB
swift/JJ
./.
But/CC
creditors/NNS
are/VBP
free/JJ
to/TO
press/VB
for/IN
court/NN
approval/NN
of/IN
their/PRP$
own/JJ
plan/NN
,/,
or/CC
the/DT
court/NN
could/MD
ignore/VB
both/DT
sides/NNS
and/CC
draw/VB
its/PRP$
own/JJ
./.
In/IN
any/DT
event/NN
,/,
some/DT
people/NNS
familiar/JJ
with/IN
the/DT
case/NN
question/NN
whether/IN
the/DT
court/NN
will/MD
act/VB
by/IN
January/NNP
as/IN
forecast/VBN
by/IN
Mr./NNP
Lorenzo/NNP
and/CC
Mr./NNP
Bakes/NNP
./.
Eastern/NNP
sought/VBD
bankruptcy-law/NN
protection/NN
a/DT
few/JJ
days/NNS
after/IN
a/DT
crippling/JJ
strike/NN
began/VBD
March/NNP
4/CD
./.
Mr./NNP
Lorenzo/NNP
told/VBD
reporters/NNS
the/DT
reorganization/NN
Eastern/NNP
is/VBZ
pursuing/VBG
would/MD
create/VB
a/DT
carrier/NN
85/CD
%/NN
to/TO
90/CD
%/NN
of/IN
the/DT
size/NN
of/IN
the/DT
pre-bankruptcy/NN
Eastern/NNP
./.
He/PRP
projected/VBD
it/PRP
would/MD
be/VB
operating/VBG
about/IN
1,000/CD
flights/NNS
a/DT
day/NN
by/IN
late/JJ
spring/NN
,/,
only/RB
slightly/RB
fewer/JJR
than/IN
the/DT
carrier/NN
's/POS
old/JJ
volume/NN
of/IN
1,050/CD
a/DT
day/NN
./.
HOPES/NNS
OF/IN
SIMPLIFYING/VBG
the/DT
corporate/JJ
minimum/JJ
tax/NN
before/IN
1990/CD
are/VBP
weakening/VBG
./.
The/DT
method/NN
of/IN
calculating/VBG
the/DT
20/CD
%/NN
tax/NN
,/,
paid/VBN
if/IN
it/PRP
exceeds/VBZ
tax/NN
figured/VBN
the/DT
regular/JJ
way/NN
,/,
is/VBZ
due/JJ
for/IN
a/DT
change/NN
in/IN
1990/CD
,/,
thanks/NNS
to/TO
1986/CD
's/POS
tax/NN
act/NN
./.
But/CC
most/JJS
experts/NNS
agree/VBP
that/IN
the/DT
concept/NN
that/WDT
is/VBZ
to/TO
be/VB
introduced/VBN
drags/VBZ
in/IN
great/JJ
complexity/NN
;/:
they/PRP
have/VBP
been/VBN
trying/VBG
to/TO
head/VB
it/PRP
off/IN
this/DT
year/NN
./.
Ways/NNS
and/CC
Means/NNS
Chairman/NNP
Rostenkowski/NNP
backed/VBD
a/DT
simplification/NN
plan/NN
in/IN
the/DT
pending/VBG
House/NN
tax/NN
bill/NN
,/,
but/CC
the/DT
plan/NN
turns/VBZ
out/IN
to/TO
be/VB
a/DT
big/JJ
revenue/NN
loser/NN
./.
Now/RB
the/DT
Senate/NNP
's/POS
stripped-down/JJ
bill/NN
omits/VBZ
any/DT
proposal/NN
to/TO
deal/VB
with/IN
the/DT
corporate/JJ
tax/NN
./.
Proponents/NNS
of/IN
simplification/NN
fear/NN
that/IN
the/DT
chances/NNS
of/IN
getting/VBG
it/PRP
into/IN
the/DT
final/JJ
bill/NN
are/VBP
waning/VBG
./.
``/``
We/PRP
hear/VBP
it/PRP
has/VBZ
low/JJ
priority/NN
on/IN
the/DT
House/NN
side/NN
,/,
''/''
says/VBZ
Samuel/NNP
Starr/NNP
of/IN
Coopers/NNP
&/CC
Lybrand/NNP
,/,
CPAs/NNPS
./.
If/IN
the/DT
law/NN
is/VBZ
n't/RB
changed/VBN
,/,
he/PRP
says/VBZ
,/,
``/``
we/PRP
are/VBP
left/VBN
staring/VBG
at/IN
rules/NNS
that/WDT
are/VBP
almost/RB
impossible/JJ
to/TO
implement/VB
,/,
because/IN
there/EX
are/VBP
so/RB
many/JJ
complex/JJ
depreciation/NN
calculations/NNS
to/TO
do/VB
./.
''/''
But/CC
Congress/NNP
still/RB
could/MD
resolve/VB
the/DT
issue/NN
with/IN
other/JJ
legislation/NN
this/DT
year/NN
or/CC
next/JJ
,/,
Starr/NNP
adds/VBZ
./.
HUGO/NNP
'S/POS
RAVAGES/NNS
may/MD
be/VB
offset/VBN
by/IN
immediate/JJ
claims/NNS
for/IN
tax/NN
refunds/NNS
./.
This/DT
law/NN
aids/VBZ
hurricane-wracked/JJ
locales/NNS
named/VBN
by/IN
the/DT
president/NN
as/IN
disaster/NN
areas/NNS
,/,
as/RB
well/RB
as/IN
regions/NNS
so/RB
designated/VBN
after/IN
other/JJ
1989/CD
disasters/NNS
./.
It/PRP
lets/VBZ
victims/NNS
elect/VB
to/TO
deduct/VB
casualty/NN
losses/NNS
on/IN
either/DT
1989/CD
or/CC
amended/VBD
1988/CD
returns/NNS
,/,
whichever/WDT
offers/VBZ
the/DT
larger/JJR
tax/NN
benefit/NN
;/:
they/PRP
have/VBP
until/IN
April/NNP
16/CD
to/TO
choose/VB
./.
Amending/VBG
a/DT
1988/CD
return/NN
to/TO
claim/VB
a/DT
refund/NN
brings/VBZ
cash/NN
faster/RBR
;/:
but/CC
for/IN
personal/JJ
losses/NNS
,/,
there/EX
are/VBP
other/JJ
factors/NNS
to/TO
consider/VB
,/,
notes/VBZ
publisher/NN
Prentice/NNP
Hall/NNP
./.
A/DT
loss/NN
--/:
after/IN
insurance/NN
recoveries/NNS
--/:
is/VBZ
deductible/JJ
only/RB
to/TO
the/DT
extent/NN
that/IN
it/PRP
exceeds/VBZ
$/$
100/CD
and/CC
that/IN
the/DT
year/NN
's/POS
total/JJ
losses/NNS
exceed/VBP
10/CD
%/NN
of/IN
adjusted/VBN
gross/JJ
income/NN
;/:
victims/NNS
may/MD
pick/VB
the/DT
year/NN
when/WRB
income/NN
is/VBZ
lower/JJR
and/CC
deductions/NNS
higher/JJR
./.
In/IN
filing/VBG
an/DT
original/JJ
return/NN
,/,
a/DT
couple/NN
should/MD
consider/VB
whether/IN
damaged/VBN
property/NN
is/VBZ
owned/VBN
jointly/RB
or/CC
separately/RB
and/CC
whether/IN
one/CD
spouse/NN
has/VBZ
larger/JJR
income/NN
;/:
that/WDT
may/MD
determine/VB
whether/IN
they/PRP
should/MD
file/VB
jointly/RB
or/CC
separately/RB
./.
THE/DT
IRS/NNP
DELAYS/VBZ
several/JJ
deadlines/NNS
for/IN
Hugo/NNP
's/POS
victims/NNS
./.
Returns/NNS
for/IN
1988/CD
from/IN
people/NNS
with/IN
six-month/JJ
filing/NN
extensions/NNS
were/VBD
due/JJ
Monday/NNP
,/,
but/CC
the/DT
IRS/NNP
says/VBZ
people/NNS
in/IN
the/DT
disaster/NN
areas/NNS
wo/MD
n't/RB
be/VB
penalized/VBN
for/IN
late/JJ
filing/NN
if/IN
their/PRP$
returns/NNS
are/VBP
marked/VBN
``/``
Hugo/NNP
''/''
and/CC
postmarked/VBN
by/IN
Jan./NNP
16/CD
./.
Interest/NN
will/MD
be/VB
imposed/VBN
on/IN
unpaid/JJ
taxes/NNS
,/,
but/CC
late-payment/NN
penalties/NNS
on/IN
the/DT
returns/NNS
will/MD
be/VB
waived/VBN
if/IN
the/DT
balance/NN
due/JJ
and/CC
paid/VBN
is/VBZ
10/CD
%/NN
or/CC
less/JJR
of/IN
the/DT
liability/NN
./.
IRS/NNP
Notice/NN
89-136/CD
describes/VBZ
this/DT
and/CC
other/JJ
deadline/NN
relief/NN
for/IN
Hugo/NNP
's/POS
victims/NNS
./.
Among/IN
the/DT
provisions/NNS
:/:
Fiscal-year/JJ
taxpayers/NNS
with/IN
returns/NNS
due/JJ
last/JJ
Monday/NNP
wo/MD
n't/RB
be/VB
penalized/VBN
if/IN
they/PRP
file/VBP
--/:
or/CC
request/VBP
an/DT
extension/NN
--/:
and/CC
pay/VBP
tax/NN
due/JJ
by/IN
Nov./NNP
15/CD
./.
Excise-tax/JJ
returns/NNS
due/JJ
by/IN
Oct./NNP
31/CD
or/CC
Nov./NNP
30/CD
may/MD
be/VB
delayed/VBN
to/TO
Jan./NNP
16/CD
./.
Extensions/NNS
ca/MD
n't/RB
be/VB
granted/VBN
for/IN
filing/VBG
employment-tax/JJ
returns/NNS
due/JJ
Oct./NNP
31/CD
or/CC
for/IN
depositing/VBG
withheld/VBN
taxes/NNS
,/,
but/CC
late/JJ
penalties/NNS
will/MD
be/VB
abated/VBN
for/IN
deposits/NNS
made/VBN
by/IN
Nov./NNP
15/CD
./.
The/DT
notice/NN
also/RB
grants/VBZ
relief/NN
for/IN
certain/JJ
estate-tax/JJ
returns/NNS
./.
ONE-DAY/JJ
JAUNTS/NNS
in/IN
a/DT
chartered/JJ
boat/NN
were/VBD
perks/NNS
for/IN
permanent/JJ
staffers/NNS
of/IN
American/NNP
Business/NNP
Service/NNP
Corp./NNP
,/,
a/DT
Costa/NNP
Mesa/NNP
,/,
Calif./NNP
,/,
supplier/NN
of/IN
temporary/JJ
workers/NNS
./.
The/DT
IRS/NNP
denied/VBD
cost/NN
deductions/NNS
because/IN
few/JJ
of/IN
the/DT
temps/NNS
got/VBD
to/TO
go/VB
aboard/IN
./.
But/CC
the/DT
Tax/NNP
Court/NNP
said/VBD
the/DT
limitations/NNS
were/VBD
reasonable/JJ
and/CC
realistic/JJ
and/CC
allowed/VBD
the/DT
deductions/NNS
./.
USED-CAR/NN
BUYERS/NNS
who/WP
try/VBP
to/TO
avoid/VB
sales/JJ
tax/NN
by/IN
understating/VBG
prices/NNS
paid/VBN
in/IN
private/JJ
deals/NNS
are/VBP
the/DT
targets/NNS
of/IN
a/DT
New/NNP
York/NNP
drive/NN
./.
Estimating/VBG
that/IN
the/DT
state/NN
may/MD
lose/VB
$/$
15/CD
million/CD
a/DT
year/NN
,/,
officials/NNS
announced/VBD
the/DT
filing/NN
of/IN
15/CD
criminal/JJ
actions/NNS
and/CC
``/``
hundreds/NNS
''/''
of/IN
civil/JJ
penalties/NNS
./.
WHEN/WRB
AN/DT
IRA/NNP
OWNER/NNP
dies/VBZ
,/,
the/DT
trustee/NN
of/IN
the/DT
individual/JJ
retirement/NN
account/NN
must/MD
file/VB
forms/NNS
5498/CD
reporting/VBG
market/NN
values/NNS
relating/VBG
to/TO
the/DT
decedent/NN
and/CC
each/DT
beneficiary/NN
,/,
with/IN
copies/NNS
to/TO
the/DT
executor/NN
and/CC
beneficiaries/NNS
./.
IRS/NNP
Revenue/NNP
Procedure/NNP
89-52/CD
describes/VBZ
the/DT
reporting/VBG
requirements/NNS
./.
BIGGER/JJR
THAN/IN
A/DT
BREADBOX/NN
was/VBD
this/DT
cash/NN
hoarder/NN
's/POS
reputation/NN
for/IN
honesty/NN
./.
People/NNS
often/RB
cite/VBP
frugality/NN
and/CC
distrust/NN
of/IN
banks/NNS
to/TO
justify/VB
cash/NN
caches/NNS
to/TO
the/DT
IRS/NNP
./.
Gregory/NNP
Damonne/NNP
Brown/NNP
of/IN
Fremont/NNP
,/,
Calif./NNP
,/,
a/DT
hardworking/JJ
,/,
reclusive/JJ
young/JJ
bachelor/NN
,/,
told/VBD
that/DT
story/NN
to/TO
the/DT
Tax/NNP
Court/NNP
./.
But/CC
judges/NNS
usually/RB
find/VBP
the/DT
real/JJ
aim/NN
is/VBZ
to/TO
escape/VB
tax/NN
on/IN
hidden/JJ
income/NN
;/:
and/CC
the/DT
IRS/NNP
said/VBD
Brown/NNP
must/MD
have/VB
had/VBN
such/JJ
income/NN
--/:
although/IN
it/PRP
uncovered/VBD
no/DT
source/NN
--/:
because/IN
he/PRP
deposited/VBD
$/$
124,732/CD
in/IN
a/DT
bank/NN
account/NN
in/IN
1982-84/CD
while/IN
reporting/VBG
income/NN
of/IN
only/JJ
$/$
52,012/CD
./.
Brown/NNP
's/POS
story/NN
:/:
The/DT
deposits/NNS
came/VBD
from/IN
savings/NNS
kept/VBN
in/IN
a/DT
Tupperware/NNP
breadbox/NN
;/:
he/PRP
saved/VBD
$/$
47,000/CD
in/IN
1974-81/CD
by/IN
living/VBG
with/IN
family/NN
members/NNS
and/CC
pinching/VBG
pennies/NNS
and/CC
$/$
45,000/CD
of/IN
secret/JJ
gifts/NNS
from/IN
his/PRP$
remorseful/JJ
father/NN
,/,
who/WP
had/VBD
abandoned/VBN
the/DT
family/NN
in/IN
1955/CD
./.
Brown/NNP
had/VBD
no/DT
proof/NN
;/:
but/CC
testimony/NN
of/IN
his/PRP$
mother/NN
and/CC
stepmother/NN
about/IN
his/PRP$
father/NN
and/CC
of/IN
an/DT
ex-employer/NN
about/IN
his/PRP$
honesty/NN
and/CC
habits/NNS
satisfied/VBD
a/DT
judge/NN
that/IN
Brown/NNP
was/VBD
truthful/JJ
and/CC
his/PRP$
tale/NN
of/IN
gifts/NNS
was/VBD
possible/JJ
./.
The/DT
IRS/NNP
offered/VBD
no/DT
evidence/NN
of/IN
hidden/VBN
sources/NNS
of/IN
taxable/JJ
income/NN
,/,
so/IN
Judge/NNP
Shields/NNP
rejected/VBD
its/PRP$
claims/NNS
./.
BRIEFS/NNS
:/:
Asked/VBD
how/WRB
he/PRP
made/VBD
charitable/JJ
gifts/NNS
of/IN
$/$
26,350/CD
out/IN
of/IN
reported/VBN
two-year/JJ
income/NN
of/IN
$/$
46,892/CD
,/,
Thomas/NNP
H./NNP
McFall/NNP
of/IN
Bryan/NNP
,/,
Texas/NNP
,/,
told/VBD
the/DT
Tax/NNP
Court/NNP
he/PRP
had/VBD
understated/VBN
his/PRP$
income/NN
./.
The/DT
court/NN
rejected/VBD
his/PRP$
incredible/JJ
claims/NNS
,/,
denied/VBD
his/PRP$
deductions/NNS
,/,
and/CC
imposed/VBD
a/DT
negligence/NN
penalty/NN
.../:
./.
Rep./NNP
Schaefer/NNP
R./NNP
,/,
Colo./NNP
a/DT
bill/NN
to/TO
exempt/VB
from/IN
tax/NN
rewards/NNS
for/IN
tips/NNS
leading/VBG
to/TO
the/DT
arrest/NN
of/IN
violent/JJ
criminals/NNS
./.
Kay/NNP
Peterson/NNP
mounts/VBZ
her/PRP$
bicycle/NN
and/CC
grinds/VBZ
up/IN
yet/RB
another/DT
steep/NN
,/,
rocky/JJ
path/NN
seemingly/RB
suitable/JJ
only/RB
for/IN
mountain/NN
goats/NNS
./.
After/IN
a/DT
tortuous/JJ
climb/NN
,/,
she/PRP
is/VBZ
rewarded/VBN
by/IN
a/DT
picture-postcard/NN
vista/NN
:/:
a/DT
glade/NN
of/IN
golden/JJ
aspens/NNS
under/IN
an/DT
azure/JJ
Indian-summer/JJ
sky/NN
./.
This/DT
place/NN
is/VBZ
12/CD
miles/NNS
into/IN
the/DT
back/NN
country/NN
--/:
a/DT
day-long/JJ
trudge/NN
for/IN
a/DT
hiker/NN
,/,
but/CC
reached/VBN
by/IN
Ms./NNP
Peterson/NNP
and/CC
six/CD
others/NNS
in/IN
a/DT
mere/JJ
two/CD
hours/NNS
of/IN
pedaling/VBG
fat-tired/JJ
mountain/NN
bikes/NNS
./.
``/``
This/DT
,/,
''/''
says/VBZ
Ms./NNP
Peterson/NNP
,/,
``/``
is/VBZ
what/WP
it/PRP
's/VBZ
all/DT
about/IN
./.
''/''
Twelve/CD
hundred/CD
miles/NNS
away/RB
,/,
rangers/NNS
at/IN
a/DT
Napa/NNP
County/NNP
,/,
Calif./NNP
,/,
state/NN
park/NN
are/VBP
among/IN
the/DT
many/JJ
who/WP
do/VBP
n't/RB
quite/RB
share/VB
the/DT
enthusiasm/NN
./.
This/DT
summer/NN
,/,
speeding/VBG
bikers/NNS
were/VBD
blamed/VBN
for/IN
an/DT
accident/NN
in/IN
the/DT
Napa/NNP
County/NNP
park/NN
,/,
in/IN
which/WDT
a/DT
horse/NN
--/:
spooked/VBN
on/IN
a/DT
trail/NN
that/WDT
was/VBD
closed/VBN
to/TO
bikers/NNS
--/:
broke/VBD
its/PRP$
leg/NN
./.
The/DT
animal/NN
had/VBD
to/TO
be/VB
destroyed/VBN
;/:
the/DT
bikers/NNS
fled/VBD
and/CC
were/VBD
never/RB
found/VBN
./.
In/IN
numerous/JJ
parks/NNS
near/IN
San/NNP
Francisco/NNP
,/,
rangers/NNS
have/VBP
been/VBN

forced/VBN
to/TO
close/VB
trails/NNS
,/,
set/VB
up/IN
speed/NN
traps/NNS
and/CC
use/VB
radar/NN
guns/NNS
to/TO
curb/VB
fast/JJ
and/CC
reckless/JJ
riding/NN
./.
They/PRP
have/VBP
even/RB
sent/VBN
helicopters/NNS
in/IN
pursuit/NN
of/IN
bikers/NNS
after/IN
hikers/NNS
and/CC
equestrians/NNS
complained/VBD
they/PRP
were/VBD
being/VBG
driven/VBN
from/IN
trails/NNS
./.
``/``
We/PRP
were/VBD
being/VBG
overrun/NN
,/,
''/''
says/VBZ
Steve/NNP
Fiala/NNP
,/,
trails/NNS
coordinator/NN
of/IN
the/DT
East/NNP
Bay/NNP
Regional/NNP
Park/NNP
District/NNP
./.
Two/CD
years/NNS
ago/IN
,/,
the/DT
district/NN
decided/VBD
to/TO
limit/VB
the/DT
bikes/NNS
to/TO
fire/NN
roads/NNS
in/IN
its/PRP$
65,000/CD
hilly/JJ
acres/NNS
./.
From/IN
about/IN
200,000/CD
six/CD
years/NNS
ago/IN
,/,
the/DT
number/NN
of/IN
mountain/NN
bikes/NNS
in/IN
the/DT
U.S./NNP
is/VBZ
expected/VBN
to/TO
grow/VB
to/TO
10/CD
million/CD
in/IN
1990/CD
./.
At/IN
least/JJS
half/PDT
that/DT
growth/NN
will/MD
have/VB
come/VBN
in/IN
the/DT
past/JJ
three/CD
years/NNS
alone/RB
./.
The/DT
controversy/NN
kicked/VBD
up/IN
by/IN
the/DT
proliferation/NN
of/IN
these/DT
all-terrain/JJ
bicycles/NNS
is/VBZ
one/CD
of/IN
the/DT
most/RBS
divisive/JJ
storms/NNS
to/TO
blow/VB
through/IN
the/DT
national/JJ
conservation/NN
movement/NN
in/IN
recent/JJ
memory/NN
./.
Bikers/NNS
--/:
many/JJ
of/IN
them/PRP
ardent/JJ
environmentalists/NNS
--/:
proclaim/VBP
their/PRP$
sport/NN
an/DT
efficient/JJ
,/,
safe/JJ
,/,
fitness-promoting/JJ
way/NN
to/TO
get/VB
back/RB
to/TO
nature/NN
,/,
while/IN
asserting/VBG
a/DT
right/NN
,/,
as/IN
taxpayers/NNS
,/,
to/TO
pedal/VB
on/IN
public/JJ
lands/NNS
./.
But/CC
the/DT
bikes/NNS
'/POS
burgeoning/VBG
numbers/NNS
,/,
safety/NN
concerns/NNS
and/CC
fear/NN
that/IN
they/PRP
damage/VBP
fragile/JJ
landscapes/NNS
have/VBP
prompted/VBN
pleas/NNS
,/,
from/IN
the/DT
Sierras/NNPS
to/TO
the/DT
Eastern/NNP
Seaboard/NNP
,/,
to/TO
ban/VB
them/PRP
from/IN
the/DT
back/NN
country/NN
./.
Key/JJ
to/TO
the/DT
issue/NN
is/VBZ
that/IN
the/DT
bikes/NNS
,/,
in/IN
skillful/JJ
hands/NNS
,/,
can/MD
go/VB
virtually/RB
anywhere/RB
,/,
and/CC
in/IN
reckless/JJ
hands/NNS
can/MD
become/VB
vehicles/NNS
of/IN
terror/NN
./.
An/DT
adept/JJ
bicyclist/NN
can/MD
leap/VB
from/IN
a/DT
dead/JJ
stop/NN
to/TO
the/DT
top/NN
of/IN
a/DT
picnic/NN
table/NN
without/IN
losing/VBG
balance/NN
./.
Such/JJ
skills/NNS
allow/VBP
riders/NNS
to/TO
fly/VB
down/IN
treacherous/JJ
mountain/NN
grades/NNS
at/IN
speeds/NNS
of/IN
up/IN
to/TO
40/CD
miles/NNS
an/DT
hour/NN
--/:
a/DT
thrill/NN
for/IN
the/DT
cyclist/NN
but/CC
a/DT
nightmare/NN
for/IN
unsuspecting/JJ
hikers/NNS
or/CC
equestrians/NNS
./.
For/IN
harried/VBN
public-land/JJ
managers/NNS
across/IN
the/DT
nation/NN
,/,
the/DT
response/NN
is/VBZ
increasingly/RB
to/TO
shut/VB
the/DT
gates/NNS
./.
The/DT
state/NN
of/IN
California/NNP
,/,
following/VBG
the/DT
lead/NN
of/IN
some/DT
regional/JJ
parks/NNS
,/,
recently/RB
adopted/VBD
regulations/NNS
that/WDT
closed/VBD
nearly/RB
all/DT
hiking/NN
paths/NNS
in/IN
state/NN
parks/NNS
to/TO
mountain/NN
bicycles/NNS
./.
The/DT
move/NN
largely/RB
consigns/VBZ
them/PRP
to/TO
roads/NNS
used/VBN
by/IN
motorized/VBN
vehicles/NNS
./.
Most/JJS
other/JJ
states/NNS
have/VBP
enacted/VBN
similar/JJ
bans/NNS
./.
The/DT
bikes/NNS
are/VBP
unwelcome/JJ
on/IN
trails/NNS
in/IN
national/JJ
parks/NNS
./.
Even/RB
the/DT
U.S./NNP
Forest/NNP
Service/NNP
,/,
whose/WP$
lenient/JJ
``/``
multiple-use/JJ
''/''
philosophy/NN
permits/VBZ
motorized/VBN
vehicles/NNS
on/IN
thousands/NNS
of/IN
miles/NNS
of/IN
its/PRP$
trails/NNS
across/IN
the/DT
U.S./NNP
,/,
has/VBZ
begun/VBN
to/TO
close/VB
some/DT
lands/NNS
to/TO
the/DT
bikes/NNS
,/,
including/VBG
major/JJ
portions/NNS
of/IN
the/DT
popular/JJ
Pacific/NNP
Crest/NNP
Trail/NNP
,/,
which/WDT
stretches/VBZ
from/IN
California/NNP
to/TO
Canada/NNP
./.
Often/RB
these/DT
closings/NNS
come/VBP
after/IN
vigorous/JJ
anti-bike/JJ
lobbying/NN
by/IN
conservation/NN
organizations/NNS
,/,
the/DT
politically/RB
potent/JJ
Sierra/NNP
Club/NNP
among/IN
them/PRP
./.
Sierra/NNP
has/VBZ
been/VBN
instrumental/JJ
in/IN
securing/VBG
a/DT
number/NN
of/IN
the/DT
California/NNP
bans/NNS
./.
It/PRP
has/VBZ
been/VBN
waging/VBG
an/DT
all-out/JJ
campaign/NN
to/TO
beat/VB
back/RB
a/DT
proposal/NN
,/,
pushed/VBN
by/IN
Utah/NNP
bike/NN
groups/NNS
,/,
to/TO
allow/VB
the/DT
cycles/NNS
in/IN
federally/RB
designated/VBN
wilderness/NN
areas/NNS
,/,
where/WRB
they/PRP
are/VBP
now/RB
prohibited/VBN
./.
Yet/RB
Sierra/NNP
's/POS
hard-line/JJ
stance/NN
has/VBZ
created/VBN
something/NN
of/IN
a/DT
rift/NN
in/IN
the/DT
organization/NN
,/,
which/WDT
estimates/VBZ
that/IN
17/CD
%/NN
of/IN
its/PRP$
500,000/CD
members/NNS
own/JJ
mountain/NN
bikes/NNS
./.
Pressure/NN
from/IN
these/DT
members/NNS
prompted/VBD
the/DT
club/NN
recently/RB
to/TO
soften/VB
its/PRP$
anti-bike/JJ
rhetoric/NN
;/:
it/PRP
no/RB
longer/RB
,/,
for/IN
example/NN
,/,
lumps/VBZ
the/DT
bikes/NNS
into/IN
the/DT
same/JJ
category/NN
as/IN
motorcycles/NNS
and/CC
other/JJ
terrain-marring/JJ
off-road/JJ
vehicles/NNS
./.
But/CC
the/DT
club/NN
still/RB
insists/VBZ
that/IN
public/JJ
lands/NNS
ought/MD
to/TO
be/VB
closed/VBN
to/TO
the/DT
bikes/NNS
unless/IN
studies/NNS
indicate/VBP
the/DT
bikes/NNS
wo/MD
n't/RB
injure/VB
the/DT
environment/NN
or/CC
other/JJ
users/NNS
./.
``/``
I/PRP
have/VBP
a/DT
mountain/NN
bike/NN
,/,
yet/RB
as/IN
a/DT
hiker/NN
I/PRP
've/VBP
been/VBN
run/VBN
off/IN
the/DT
road/NN
by/IN
kids/NNS
careening/VBG
down/IN
a/DT
fire/NN
trail/NN
on/IN
them/PRP
,/,
''/''
says/VBZ
Gene/NNP
Coan/NNP
,/,
an/DT
official/NN
at/IN
Sierra/NNP
's/POS
headquarters/NN
in/IN
San/NNP
Francisco/NNP
,/,
echoing/VBG
the/DT
concerns/NNS
of/IN
many/JJ
members/NNS
./.
``/``
People/NNS
who/WP
feel/VBP
that/IN
cyclists/NNS
should/MD
be/VB
banned/VBN
from/IN
an/DT
area/NN
are/VBP
n't/RB
looking/VBG
at/IN
the/DT
whole/JJ
picture/NN
,/,
''/''
complains/VBZ
Mark/NNP
Langton/NNP
,/,
associate/JJ
editor/NN
of/IN
Mountain/NNP
and/CC
City/NNP
Biking/NNP
magazine/NN
in/IN
Canoga/NNP
Park/NNP
,/,
Calif/NNP
./.
Mr./NNP
Langton/NNP
is/VBZ
among/IN
the/DT
legions/NNS
of/IN
bikers/NNS
who/WP
got/VBD
their/PRP$
first/JJ
taste/NN
of/IN
wilderness/NN
as/IN
hikers/NNS
or/CC
backpackers/NNS
./.
He/PRP
says/VBZ
fellow/NN
bikers/NNS
show/VBP
the/DT
same/JJ
concern/NN
for/IN
the/DT
land/NN
that/IN
they/PRP
demonstrated/VBD
as/IN
hikers/NNS
;/:
many/DT
are/VBP
appalled/VBN
that/IN
the/DT
conservation/NN
community/NN
would/MD
suddenly/RB
consider/VB
them/PRP
the/DT
enemy/NN
./.
To/TO
fight/VB
back/RB
,/,
activists/NNS
such/JJ
as/IN
Mr./NNP
Langton/NNP
are/VBP
forming/VBG
groups/NNS
to/TO
lobby/VB
land/NN
managers/NNS
over/IN
access/NN
issues/NNS
and/CC
undertake/VB
education/NN
programs/NNS
to/TO
show/VB
that/IN
the/DT
bikes/NNS
can/MD
responsibly/RB
share/VB
trails/NNS
./.
Mr./NNP
Langton/NNP
's/POS
group/NN
,/,
Concerned/NNP
Off-Road/NNP
Bicyclists/NNPS
Association/NNP
,/,
mounted/VBN
petition/NN
drives/VBZ
to/TO
help/VB
keep/VB
open/JJ
certain/JJ
Santa/NNP
Monica/NNP
Mountain/NNP
trails/NNS
designated/VBN
for/IN
closing/VBG
./.
Biking/VBG
groups/NNS
in/IN
Montana/NNP
,/,
Idaho/NNP
,/,
Michigan/NNP
and/CC
Massachusetts/NNP
have/VBP
won/VBN
similar/JJ
concessions/NNS
,/,
says/VBZ
Tim/NNP
Blumenthal/NNP
,/,
mountain/NN
bike/NN
editor/NN
of/IN
Bicycling/NNP
magazine/NN
./.
These/DT
groups/NNS
have/VBP
been/VBN

trying/VBG
to/TO
improve/VB
the/DT
mountain/NN
biker/NN
's/POS
image/NN
;/:
in/IN
the/DT
San/NNP
Francisco-area/NNP
park/NN
district/NN
where/WRB
a/DT
ranger/NN
was/VBD
clobbered/VBN
by/IN
a/DT
cyclist/NN
this/DT
summer/NN
bikers/NNS
have/VBP
formed/VBN
a/DT
volunteer/NN
patrol/NN
to/TO
help/VB
rangers/NNS
enforce/VB
regulations/NNS
,/,
and/CC
to/TO
school/NN
riders/NNS
in/IN
proper/JJ
trail/NN
etiquette/NN
./.
Even/RB
staunch/JJ
anti-bike/JJ
Sierra/NNP
members/NNS
concede/VBP
that/IN
10/CD
%/NN
of/IN
all/DT
riders/NNS
cause/VBP
most/JJS
of/IN
the/DT
problems/NNS
./.
While/IN
some/DT
are/VBP
renegade/NN
riders/NNS
who/WP
simply/RB
scorn/VBP
regulations/NNS
,/,
much/RB
bad/JJ
riding/NN
simply/RB
reflects/VBZ
ignorance/NN
that/WDT
can/MD
be/VB
corrected/VBN
through/IN
``/``
education/NN
and/CC
peer/NN
pressure/NN
,/,
''/''
says/VBZ
Jim/NNP
Hasenauer/NNP
,/,
a/DT
director/NN
of/IN
the/DT
International/NNP
Mountain/NNP
Biking/NNP
Association/NNP
./.
``/``
I/PRP
think/VBP
we/PRP
're/VBP
making/VBG
progress/NN
./.
''/''
Few/JJ
would/MD
have/VB
foreseen/VBN
such/PDT
a/DT
furor/NN
when/WRB
,/,
a/DT
decade/NN
ago/IN
,/,
some/DT
Marin/NNP
County/NNP
bicycle/NN
enthusiasts/NNS
created/VBD
a/DT
hybrid/JJ
bike/NN
using/VBG
fat/JJ
tires/NNS
,/,
lightweight/JJ
metallurgy/NN
and/CC
multi-gear/JJ
technology/NN
./.
They/PRP
wanted/VBD
a/DT
machine/NN
that/WDT
would/MD
allow/VB
them/PRP
to/TO
pedal/VB
into/IN
rugged/JJ
terrain/NN
then/RB
inaccessible/JJ
to/TO
cycles/NNS
./.
They/PRP
got/VBD
a/DT
machine/NN
more/RBR
responsive/JJ
,/,
more/RBR
stable/JJ
and/CC
in/IN
many/JJ
ways/NNS
easier/JJR
to/TO
ride/VB
than/IN
the/DT
thin-tired/JJ
racing/NN
bikes/NNS
that/WDT
then/RB
were/VBD
the/DT
rage/NN
./.
When/WRB
the/DT
bikes/NNS
first/RB
entered/VBD
mass/JJ
production/NN
in/IN
1981/CD
,/,
they/PRP
were/VBD
dismissed/VBN
as/IN
a/DT
fad/NN
./.
Last/JJ
year/NN
,/,
25/CD
%/NN
of/IN
the/DT
10/CD
million/CD
bicycles/NNS
sold/VBN
in/IN
the/DT
U.S./NNP
were/VBD
mountain/NN
bikes/NNS
./.
In/IN
California/NNP
,/,
a/DT
bellwether/NN
market/NN
,/,
they/PRP
accounted/VBD
for/IN
more/RBR
than/IN
80/CD
%/NN
of/IN
all/DT
bike/NN
sales/NNS
./.
The/DT
majority/NN
of/IN
the/DT
bikes/NNS
never/RB
even/RB
make/VBP
it/PRP
into/IN
the/DT
high/JJ
country/NN
./.
City/NN
dwellers/NNS
love/VBP
them/PRP
because/IN
they/PRP
shift/VBP
smoothly/RB
in/IN
traffic/NN
,/,
bounce/VBP
easily/RB
over/IN
curbs/NNS
and/CC
roll/VBP
through/IN
road/NN
glass/NN
with/IN
far/RB
fewer/JJR
flat/JJ
tires/NNS
than/IN
racing/VBG
bikes/NNS
./.
Crested/NNP
Butte/NNP
,/,
population/NN
1,200/CD
,/,
is/VBZ
a/DT
bastion/NN
of/IN
the/DT
sport/NN
./.
By/IN
one/CD
estimate/NN
,/,
everyone/NN
here/RB
under/IN
50/CD
owns/VBZ
at/IN
least/JJS
one/CD
bike/NN
./.
The/DT
town/NN
is/VBZ
home/NN
to/TO
the/DT
Mountain/NNP
Bike/NNP
Hall/NNP
of/IN
Fame/NNP
and/CC
it/PRP
hosts/VBZ
the/DT
annual/JJ
Fat/NNP
Tire/NNP
Bike/NNP
Week/NNP
./.
This/DT
summer/NN
,/,
the/DT
jamboree/NN
attracted/VBD
more/JJR
visitors/NNS
than/IN
the/DT
busiest/JJS
week/NN
of/IN
the/DT
town/NN
's/POS
winter/NN
ski/NN
season/NN
./.
David/NNP
Lindsey/NNP
,/,
chairman/NN
of/IN
the/DT
Fat/NNP
Tire/NNP
Bike/NNP
celebration/NN
,/,
muses/VBZ
that/IN
the/DT
bike/NN
's/POS
popularity/NN
may/MD
be/VB
a/DT
combination/NN
of/IN
technology/NN
and/CC
nostalgia/NN
./.
``/``
The/DT
mountain/NN
bike/NN
feels/VBZ
as/RB
comfortable/JJ
as/IN
the/DT
`/``
paperboy/NN
'/''
bike/NN
you/PRP
had/VBD
as/IN
a/DT
kid/NN
,/,
but/CC
it/PRP
can/MD
do/VB
so/RB
much/RB
more/JJR
,/,
''/''
he/PRP
says/VBZ
./.
The/DT
following/VBG
issues/NNS
were/VBD
recently/RB
filed/VBN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
:/:
Canada/NNP
's/POS
Province/NNP
of/IN
Nova/NNP
Scotia/NNP
,/,
shelf/NN
offering/NN
of/IN
up/IN
to/TO
$/$
550/CD
million/CD
of/IN
debentures/NNS
./.
Golar/NNP
Gas/NNP
Holding/NNP
Co./NNP
,/,
a/DT
subsidiary/NN
of/IN
Gotaas-Larsen/NNP
Shipping/NNP
Corp./NNP
,/,
offering/VBG
of/IN
$/$
280/CD
million/CD
first/RB
preferred/VBD
ship/NN
mortgage/NN
notes/NNS
,/,
via/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNPS
./.
H.F./NNP
Ahmanson/NNP
&/CC
Co./NNP
,/,
offering/NN
of/IN
four/CD
million/CD
shares/NNS
of/IN
noncumulative/JJ
convertible/JJ
preferred/VBN
stock/NN
,/,
Series/NNP
B./NNP
,/,
via/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
,/,
First/NNP
Boston/NNP
Corp./NNP
,/,
and/CC
Merrill/NNP
Lynch/NNP
./.
Shared/NNP
Technologies/NNPS
Inc./NNP
,/,
offering/NN
of/IN
2.5/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
Smetek/NNP
,/,
Van/NNP
Horn/NNP
&/CC
Cormack/NNP
Inc./NNP
and/CC
Oakes/NNP
,/,
Fitzwilliams/NNP
&/CC
Co/NNP
./.
Stock-market/NN
tremors/NNS
again/RB
shook/VBD
bond/NN
prices/NNS
,/,
while/IN
the/DT
dollar/NN
turned/VBD
in/IN
a/DT
mixed/VBN
performance/NN
./.
Early/RB
yesterday/NN
,/,
investors/NNS
scrambled/VBD
to/TO
buy/VB
Treasury/NNP
bonds/NNS
for/IN
safety/NN
as/IN
stock/NN
prices/NNS
plummeted/VBD
and/CC
fears/NNS
mounted/VBD
of/IN
a/DT
replay/NN
of/IN
Friday/NNP
./.
But/CC
stocks/NNS
later/RB
recovered/VBD
,/,
erasing/VBG
most/JJS
of/IN
their/PRP$
early/JJ
declines/NNS
./.
That/DT
cut/VBD
short/RB
the/DT
rally/NN
in/IN
Treasury/NNP
bonds/NNS
and/CC
depressed/VBN
prices/NNS
moderately/RB
below/IN
late/JJ
Monday/NNP
's/POS
levels/NNS
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
,/,
down/IN
more/RBR
than/IN
60.25/CD
points/NNS
early/RB
in/IN
the/DT
day/NN
,/,
finished/VBD
18.65/CD
points/NNS
lower/JJR
at/IN
2638.73/CD
./.
Long-term/JJ
Treasury/NNP
issues/NNS
declined/VBD
about/IN
half/PDT
a/DT
point/NN
,/,
or/CC
$/$
5/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
./.
``/``
The/DT
stock/NN
market/NN
clearly/RB
is/VBZ
leading/VBG
the/DT
bond/NN
markets/NNS
,/,
''/''
said/VBD
Jack/NNP
Conlon/NNP
,/,
an/DT
executive/JJ
vice/NN
president/NN
at/IN
Nikko/NNP
Securities/NNPS
./.
``/``
People/NNS
are/VBP
breathing/VBG
a/DT
major/JJ
sigh/NN
of/IN
relief/NN
that/IN
the/DT
world/NN
did/VBD
n't/RB
end/VB
Monday/NNP
morning/NN
''/''
or/CC
yesterday/NN
./.
Gold/NN
,/,
a/DT
closely/RB
watched/VBN
barometer/NN
of/IN
investor/NN
anxiety/NN
,/,
was/VBD
little/RB
changed/VBN
./.
The/DT
dollar/NN
initially/RB
fell/VBD
against/IN
other/JJ
major/JJ
currencies/NNS
on/IN
news/NN
that/IN
the/DT
U.S./NNP
trade/NN
deficit/NN
surged/VBD
in/IN
August/NNP
to/TO
$/$
10.77/CD
billion/CD
./.
But/CC
the/DT
dollar/NN
later/RB
rebounded/VBD
,/,
finishing/VBG
slightly/RB
higher/JJR
against/IN
the/DT
yen/NN
although/IN
slightly/RB
lower/JJR
against/IN
the/DT
mark/NN
./.
Federal/NNP
Reserve/NNP
officials/NNS
sent/VBD
another/DT
signal/NN
of/IN
their/PRP$
determination/NN
to/TO
shore/VB
up/IN
investor/NN
confidence/NN
./.
In/IN
an/DT
apparent/JJ
attempt/NN
to/TO
keep/VB
a/DT
lid/NN
on/IN
short-term/JJ
interest/NN
rates/NNS
,/,
the/DT
Fed/NNP
once/RB
again/RB
pumped/VBD
money/NN
into/IN
the/DT
banking/NN
system/NN
./.
But/CC
the/DT
Fed/NNP
move/NN
was/VBD
a/DT
small/JJ
gesture/NN
,/,
traders/NNS
said/VBD
./.
Fed/NNP
officials/NNS
appear/VBP
reluctant/JJ
to/TO
ease/VB
their/PRP$
credit/NN
grip/NN
any/RB
further/RB
because/IN
a/DT
bold/JJ
move/NN
does/VBZ
n't/RB
appear/VB
necessary/JJ
,/,
several/JJ
investment/NN
managers/NNS
said/VBD
./.
The/DT
Fed/NNP
has/VBZ
allowed/VBN
a/DT
key/JJ
short-term/JJ
interest/NN
rate/NN
to/TO
decline/VB
about/IN
one-quarter/NN
percentage/NN
point/NN
./.
The/DT
federal/JJ
funds/NNS
rate/NN
on/IN
overnight/JJ
loans/NNS
between/IN
banks/NNS
has/VBZ
been/VBN
hovering/VBG
around/IN
8/CD
3\/4/CD
%/NN
,/,
down/IN
from/IN
9/CD
%/NN
previously/RB
./.
Although/IN
stocks/NNS
have/VBP
led/VBN
bonds/NNS
this/DT
week/NN
,/,
some/DT
traders/NNS
predict/VBP
that/IN
relationship/NN
will/MD
reverse/VB
during/IN
the/DT
next/JJ
few/JJ
weeks/NNS
./.
Nikko/NNP
's/POS
Mr./NNP
Conlon/NNP
fears/VBZ
a/DT
huge/JJ
wave/NN
of/IN
Treasury/NNP
borrowing/VBG
early/JJ
next/JJ
month/NN
will/MD
drive/VB
down/IN
Treasury/NNP
bond/NN
prices/NNS
./.
That/IN
,/,
coupled/VBN
with/IN
poor/JJ
third-quarter/NN
corporate-earnings/NNS
comparisons/NNS
,/,
``/``
will/MD
make/VB
trouble/NN
for/IN
the/DT
equity/NN
market/NN
for/IN
the/DT
next/JJ
two/CD
to/TO
three/CD
months/NNS
,/,
''/''
he/PRP
says/VBZ
./.
But/CC
several/JJ
other/JJ
traders/NNS
contend/VBP
investors/NNS
have/VBP
overreacted/VBN
to/TO
junk-bond/NN
jitters/NNS
,/,
and/CC
that/IN
stock/NN
prices/NNS
will/MD
continue/VB
to/TO
recover/VB
./.
``/``
They/PRP
shot/VBD
the/DT
whole/JJ
orchestra/NN
just/RB
because/IN
the/DT
piano/NN
player/NN
hit/VBD
a/DT
bad/JJ
note/NN
,/,
''/''
said/VBD
Laszlo/NNP
Birinyi/NNP
,/,
president/NN
of/IN
Birinyi/NNP
Associates/NNPS
Inc./NNP
,/,
referring/VBG
to/TO
the/DT
stock/NN
market/NN
's/POS
plunge/NN
Friday/NNP
on/IN
news/NN
of/IN
trouble/NN
in/IN
financing/VBG
the/DT
UAL/NNP
Corp/NNP
./.
buy-out/NN
./.
In/IN
major/JJ
market/NN
activity/NN
:/:
Treasury/NNP
bond/NN
prices/NNS
fell/VBD
./.
The/DT
yield/NN
on/IN
30-year/JJ
Treasury/NNP
bonds/NNS
climbed/VBD
back/RB
above/IN
8/CD
%/NN
,/,
ending/VBG
the/DT
day/NN
at/IN
8.03/CD
%/NN
./.
The/DT
dollar/NN
was/VBD
mixed/VBN
./.
Late/JJ
yesterday/NN
in/IN
New/NNP
York/NNP
,/,
the/DT
dollar/NN
rose/VBD
to/TO
142.75/CD
yen/NN
from/IN
141.80/CD
yen/NN
Monday/NNP
,/,
but/CC
fell/VBD
to/TO
1.8667/CD
marks/NNS
from/IN
1.8685/CD
marks/NNS
./.
The/DT
Consumer/NNP
News/NNP
and/CC
Business/NNP
Channel/NNP
cable/NN
network/NN
and/CC
U.S./NNP
News/NNP
&/CC
World/NNP
Report/NNP
have/VBP
formed/VBN
a/DT
joint/JJ
venture/NN
to/TO
produce/VB
cable/NN
program/NN
versions/NNS
of/IN
special/JJ
issues/NNS
of/IN
the/DT
magazine/NN
./.
The/DT
programs/NNS
will/MD
run/VB
on/IN
the/DT
cable/NN
network/NN
the/DT
Sunday/NNP
evening/NN
immediately/RB
prior/RB
to/TO
the/DT
release/NN
of/IN
the/DT
special/JJ
issue/NN
of/IN
U.S./NNP
News/NNP
&/CC
World/NNP
Report/NNP
./.
CNBC/NNP
is/VBZ
a/DT
joint/JJ
venture/NN
of/IN
the/DT
National/NNP
Broadcasting/NNP
Co./NNP
,/,
a/DT
unit/NN
of/IN
General/NNP
Electric/NNP
Co./NNP
,/,
and/CC
Cablevision/NNP
System/NNP
Corp/NNP
./.
Advertisers/NNS
will/MD
be/VB
offered/VBN
an/DT
advertising/NN
package/NN
,/,
which/WDT
for/IN
a/DT
single/JJ
price/NN
,/,
will/MD
include/VB
time/NN
on/IN
the/DT
CNBC/NNP
program/NN
and/CC
ad/NN
pages/NNS
in/IN
the/DT
special/JJ
guides/NNS
./.
CNBC/NNP
will/MD
produce/VB
six/CD
,/,
one-hour/JJ
programs/NNS
,/,
beginning/VBG
in/IN
April/NNP
1990/CD
./.
The/DT
first/JJ
program/NN
scheduled/VBN
in/IN
the/DT
joint/JJ
venture/NN
is/VBZ
``/``
The/NNP
1990/CD
Homeowner/NNP
's/POS
Guide/NNP
./.
''/''
Other/JJ
programs/NNS
and/CC
special/JJ
issues/NNS
will/MD
be/VB
based/VBN
on/IN
themes/NNS
of/IN
health/NN
,/,
jobs/NNS
,/,
personal/JJ
finance/NN
,/,
the/DT
best/JJS
colleges/NNS
,/,
and/CC
investments/NNS
./.
The/DT
programs/NNS
will/MD
be/VB
written/VBN
and/CC
produced/VBN
by/IN
CNBC/NNP
,/,
with/IN
background/NN
and/CC
research/NN
provided/VBN
by/IN
staff/NN
from/IN
U.S./NNP
News/NNP
&/CC
World/NNP
Report/NNP
./.
Skoal/NNP
Daze/NNP
I/PRP
've/VBP
learned/VBN
the/DT
hard/JJ
way/NN
that/IN
too/RB
much/JJ
booze/NN
Takes/VBZ
revenge/NN
the/DT
next/JJ
day/NN
about/IN
nine/CD
;/:
No/DT
wonder/NN
I/PRP
say/VBP
,/,
``/``
I/PRP
drink/VBP
to/TO
your/PRP$
health/NN
''/''
--/:
It/PRP
certainly/RB
is/VBZ
n't/RB
to/TO
mine/PRP
!/.
--/:
George/NNP
O./NNP
Ludcke/NNP
./.
Spaced/NNP
Out/NNP
Those/DT
supermarket/NN
tabloids/NNS
Make/VBP
me/PRP
feel/VB
slow/JJ
Because/IN
I/PRP
still/RB
have/VBP
n't/RB
seen/VBN
--/:
Bruce/NNP
Kafaroff/NNP
./.
Daffynition/NNP
Repression/NN
:/:
emote/VB
control/NN
./.
--/:
Daisy/NNP
Brown/NNP
./.
Weyerhaeuser/NNP
Co./NNP
reported/VBD
a/DT
one-time/JJ
gain/NN
and/CC
strong/JJ
wood-product/NN
sales/NNS
that/WDT
offset/VBP
weakness/NN
in/IN
pulp/NN
and/CC
paper/NN
to/TO
fuel/VB
a/DT
15/CD
%/NN
jump/NN
in/IN
third-quarter/NN
net/JJ
income/NN
to/TO
$/$
166.8/CD
million/CD
,/,
or/CC
78/CD
cents/NNS
a/DT
share/NN
./.
In/IN
the/DT
1988/CD
third/JJ
quarter/NN
,/,
the/DT
forest-products/NNS
company/NN
reported/VBD
profit/NN
of/IN
$/$
144.9/CD
million/CD
,/,
or/CC
69/CD
cents/NNS
a/DT
share/NN
./.
Sales/NNS
rose/VBD
9/CD
%/NN
to/TO
$/$
2.57/CD
billion/CD
from/IN
$/$
2.36/CD
billion/CD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
the/DT
company/NN
posted/VBD
a/DT
14/CD
%/NN
rise/NN
in/IN
profit/NN
to/TO
$/$
469.8/CD
million/CD
,/,
or/CC
$/$
2.21/CD
a/DT
share/NN
,/,
from/IN
$/$
410.3/CD
million/CD
,/,
or/CC
$/$
1.95/CD
a/DT
share/NN
./.
Sales/NNS
rose/VBD
9/CD
%/NN
to/TO
$/$
7.54/CD
billion/CD
from/IN
$/$
6.95/CD
billion/CD
./.
Results/NNS
for/IN
the/DT
1989/CD
third/JJ
quarter/NN
and/CC
nine/CD
months/NNS
include/VBP
a/DT
pretax/NN
loss/NN
of/IN
$/$
33/CD
million/CD
from/IN
the/DT
company/NN
's/POS
business/NN
improvement/NN
and/CC
refocusing/NN
program/NN
,/,
and/CC
a/DT
gain/NN
of/IN
$/$
49/CD
million/CD
on/IN
the/DT
sale/NN
of/IN
a/DT
subsidiary/NN
's/POS
common/JJ
stock/NN
./.
Forest-products/NNS
operations/NNS
strengthened/VBD
in/IN
the/DT
third/JJ
quarter/NN
,/,
while/IN
paper/NN
operations/NNS
were/VBD
dogged/VBN
by/IN
higher/JJR
costs/NNS
,/,
soft/JJ
newsprint/NN
exports/NNS
and/CC
a/DT
strong/JJ
Japanese/JJ
yen/NN
./.
Some/DT
competing/VBG
forest-products/NNS
firms/NNS
have/VBP
recently/RB
reported/VBN
improved/VBN
results/NNS
due/JJ
to/TO
strong/JJ
pulp/NN
and/CC
paper/NN
business/NN
./.
Weyerhaeuser/NNP
's/POS
pulp/NN
and/CC
paper/NN
operations/NNS
were/VBD
up/IN
for/IN
the/DT
nine/CD
months/NNS
,/,
but/CC
full-year/JJ
performance/NN
depends/VBZ
on/IN
the/DT
balance/NN
of/IN
operating/VBG
and/CC
maintenance/NN
costs/NNS
,/,
plus/CC
pricing/VBG
of/IN
certain/JJ
products/NNS
,/,
the/DT
company/NN
said/VBD
./.
Looking/VBG
ahead/RB
to/TO
the/DT
fourth/JJ
quarter/NN
,/,
the/DT
company/NN
said/VBD
export/JJ
log/NN
and/CC
lumber/NN
markets/NNS
will/MD
be/VB
weak/JJ
,/,
while/IN
panel/NN
and/CC
plywood/NN
markets/NNS
will/MD
be/VB
stronger/JJR
./.
Pulp/NN
and/CC
paper/NN
performance/NN
depends/VBZ
on/IN
cost/NN
and/CC
price/NN
variables/NNS
,/,
the/DT
company/NN
said/VBD
./.
Bankers/NNP
Trust/NNP
New/NNP
York/NNP
Corp./NNP
became/VBD
the/DT
latest/JJS
major/JJ
U.S./NNP
bank/NN
to/TO
increase/VB
reserves/NNS
for/IN
its/PRP$
loans/NNS
to/TO
less-developed/JJ
countries/NNS
,/,
making/VBG
a/DT
$/$
1.6/CD
billion/CD
third-quarter/NN
addition/NN
to/TO
its/PRP$
provision/NN
./.
The/DT
bank/NN
also/RB
said/VBD
it/PRP
expects/VBZ
to/TO
report/VB
a/DT
$/$
1.42/CD
billion/CD
loss/NN
for/IN
the/DT
third/JJ
quarter/NN
and/CC
a/DT
loss/NN
for/IN
the/DT
full/JJ
year/NN
./.
The/DT
new/JJ
reserves/NNS
bring/VBP
the/DT
company/NN
's/POS
provision/NN
for/IN
loans/NNS
to/TO
Third/NNP
World/NNP
countries/NNS
to/TO
$/$
2.6/CD
billion/CD
,/,
or/CC
85/CD
%/NN
of/IN
Bankers/NNP
Trust/NNP
's/POS
medium/NN
and/CC
long-term/JJ
loans/NNS
to/TO
these/DT
countries/NNS
./.
``/``
Step/VB
up/IN
to/TO
the/DT
plate/NN
and/CC
take/VB
the/DT
big/JJ
swing/NN
./.
Get/VB
the/DT
problem/NN
behind/IN
you/PRP
and/CC
do/VB
n't/RB
look/VB
back/RB
,/,
''/''
said/VBD
James/NNP
J./NNP
McDermott/NNP
,/,
analyst/NN
at/IN
Keefe/NNP
,/,
Bruyette/NNP
&/CC
Woods/NNP
,/,
in/IN
approving/VBG
of/IN
the/DT
move/NN
./.
Bankers/NNP
Trust/NNP
``/``
has/VBZ
had/VBN
the/DT
capacity/NN
to/TO
do/VB
this/DT
for/IN
some/DT
time/NN
,/,
''/''
the/DT
analyst/NN
said/VBD
./.
He/PRP
expects/VBZ
Citicorp/NNP
to/TO
take/VB
a/DT
similar/JJ
step/NN
this/DT
year/NN
./.
Citicorp/NNP
yesterday/NN
reported/VBD
a/DT
9/CD
%/NN
third-quarter/NN
earnings/NNS
drop/NN
,/,
which/WDT
analysts/NNS
called/VBD
a/DT
bit/NN
disappointing/JJ
,/,
while/IN
Manufacturers/NNP
Hanover/NNP
Corp./NNP
posted/VBD
a/DT
$/$
789/CD
million/CD
loss/NN
for/IN
the/DT
quarter/NN
after/IN
adding/VBG
$/$
950/CD
million/CD
to/TO
its/PRP$
reserve/NN
for/IN
loans/NNS
to/TO
less-developed/JJ
countries/NNS
./.
Three/CD
other/JJ
major/JJ
U.S./NNP
banks/NNS
posted/VBD
earnings/NNS
increases/NNS
./.
Wells/NNP
Fargo/NNP
&/CC
Co./NNP
of/IN
San/NNP
Francisco/NNP
posted/VBD
a/DT
17/CD
%/NN
jump/NN
./.
PNC/NNP
Financial/NNP
Corp./NNP
,/,
the/DT
parent/NN
of/IN
Pittsburgh/NNP
National/NNP
Bank/NNP
,/,
reported/VBD
net/JJ
income/NN
climbed/VBD
9.8/CD
%/NN
,/,
while/IN
net/NN
for/IN
Banc/NNP
One/NNP
Corp./NNP
of/IN
Columbus/NNP
,/,
Ohio/NNP
,/,
grew/VBD
3.8/CD
%/NN
./.
Citicorp/NNP
Analysts/NNS
were/VBD
only/RB
slightly/RB
disappointed/VBN
by/IN
Citicorp/NNP
's/POS
numbers/NNS
./.
``/``
There/EX
's/VBZ
nothing/NN
in/IN
here/RB
that/IN
's/VBZ
horrible/JJ
and/CC
nothing/NN
to/TO
make/VB
you/PRP
think/VB
they/PRP
're/VBP
setting/VBG
the/DT
world/NN
on/IN
fire/NN
,/,
''/''
said/VBD
Carole/NNP
Berger/NNP
,/,
analyst/NN
for/IN
C.J./NNP
Lawrence/NNP
,/,
Morgan/NNP
Grenfell/NNP
Inc/NNP
./.
Earnings/NNS
from/IN
the/DT
bank/NN
's/POS
global/JJ
consumer/NN
business/NN
grew/VBD
27/CD
%/NN
./.
``/``
The/DT
consumer/NN
business/NN
continues/VBZ
to/TO
drive/VB
the/DT
earnings/NNS
stream/NN
,/,
''/''
said/VBD
Mr./NNP
McDermott/NNP
of/IN
Keefe/NNP
,/,
Bruyette/NNP
&/CC
Woods/NNP
./.
Corporate/JJ
finance/NN
and/CC
trading/NN
results/NNS
in/IN
member/NN
countries/NNS
of/IN
the/DT
Organization/NNP
for/IN
Economic/NNP
Cooperation/NNP
and/CC
Development/NNP
were/VBD
``/``
relatively/RB
flat/JJ
,/,
sometimes/RB
choppy/JJ
,/,
''/''
the/DT
bank/NN
said/VBD
,/,
and/CC
profit/NN
for/IN
the/DT
area/NN
sank/VBD
27/CD
%/NN
./.
The/DT
cross-border/JJ
loan/NN
portfolio/NN
reflected/VBD
``/``
adjustment/NN
problems/NNS
and/CC
episodic/JJ
payment/NN
patterns/NNS
,/,
''/''
the/DT
bank/NN
said/VBD
no/DT
interest/NN
payments/NNS
from/IN
Argentina/NNP
in/IN
the/DT
nine/CD
months/NNS
and/CC
none/NN
from/IN
Brazil/NNP
in/IN
the/DT
third/JJ
quarter/NN
,/,
while/IN
Venezuela/NNP
brought/VBD
itself/PRP
``/``
substantially/RB
current/JJ
./.
''/''
Overall/RB
,/,
the/DT
portfolio/NN
narrowed/VBD
its/PRP$
quarterly/JJ
loss/NN
to/TO
$/$
70/CD
million/CD
from/IN
$/$
80/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
``/``
People/NNS
were/VBD
waiting/VBG
to/TO
see/VB
if/IN
we/PRP
would/MD
take/VB
an/DT
additional/JJ
provision/NN
''/''
for/IN
medium-term/JJ
and/CC
long-term/JJ
loans/NNS
to/TO
less-developed/JJ
countries/NNS
,/,
a/DT
Citicorp/NNP
spokesman/NN
said/VBD
./.
But/CC
he/PRP
reiterated/VBD
the/DT
bank/NN
's/POS
position/NN
that/IN
it/PRP
is/VBZ
comfortable/JJ
with/IN
the/DT
current/JJ
level/NN
of/IN
$/$
2.6/CD
billion/CD
,/,
covering/VBG
about/IN
30/CD
%/NN
of/IN
the/DT
$/$
8.9/CD
billion/CD
of/IN
such/JJ
loans/NNS
outstanding/JJ
./.
Ronald/NNP
I./NNP
Mandle/NNP
,/,
analyst/NN
at/IN
Sanford/NNP
C./NNP
Bernstein/NNP
&/CC
Co./NNP
,/,
called/VBD
Citicorp/NNP
's/POS
venture-capital/JJ
gains/NNS
of/IN
$/$
93/CD
million/CD
before/IN
taxes/NNS
``/``
strong/JJ
./.
''/''
A/DT
``/``
concerning/VBG
''/''
item/NN
the/DT
analyst/NN
cited/VBD
was/VBD
the/DT
10/CD
%/NN
jump/NN
in/IN
expenses/NNS
,/,
which/WDT
the/DT
bank/NN
attributes/VBZ
to/TO
costs/NNS
of/IN
expanding/VBG
both/PDT
its/PRP$
consumer/NN
credit-card/NN
operations/NNS
and/CC
its/PRP$
overseas/JJ
branch/NN
business/NN
./.
Citicorp/NNP
's/POS
spokesman/NN
said/VBD
,/,
however/RB
,/,
that/IN
the/DT
bank/NN
is/VBZ
maintaining/VBG
those/DT
expenses/NNS
in/IN
proportion/NN
to/TO
revenue/NN
growth/NN
./.
Wells/NNP
Fargo/NNP
Wells/NNP
Fargo/NNP
continued/VBD
to/TO
generate/VB
one/CD
of/IN
the/DT
highest/JJS
profit/NN
margins/NNS
among/IN
major/JJ
banks/NNS
,/,
minimizing/VBG
a/DT
drop/NN
in/IN
net/JJ
interest/NN
margin/NN
with/IN
13/CD
%/NN
third-quarter/NN
growth/NN
in/IN
high-yielding/JJ
business/NN
loans/NNS
and/CC
similar/JJ
growth/NN
in/IN
mortgages/NNS
./.
Its/PRP$
margin/NN
fell/VBD
only/RB
seven/CD
basis/NN
points/NNS
,/,
or/CC
7\/100ths/CD
of/IN
a/DT
percentage/NN
point/NN
,/,
from/IN
a/DT
year/NN
ago/IN
,/,
compared/VBN
with/IN
a/DT
13-point/JJ
drop/NN
at/IN
Security/NNP
Pacific/NNP
Corp./NNP
and/CC
much/JJ
larger/JJR
declines/NNS
among/IN
banks/NNS
in/IN
other/JJ
parts/NNS
of/IN
the/DT
country/NN
./.
As/IN
a/DT
result/NN
,/,
Wells/NNP
Fargo/NNP
's/POS
net/JJ
interest/NN
income/NN
rose/VBD
$/$
36.3/CD
million/CD
,/,
or/CC
7/CD
%/NN
,/,
to/TO
$/$
537/CD
million/CD
for/IN
the/DT
quarter/NN
./.
Non-interest/JJ
income/NN
fell/VBD
slightly/RB
to/TO
$/$
191.9/CD
million/CD
from/IN
$/$
193.3/CD
million/CD
,/,
while/IN
Wells/NNP
Fargo/NNP
continued/VBD
to/TO
rigorously/RB
control/VB
non-interest/JJ
expense/NN
,/,
which/WDT
was/VBD
almost/RB
flat/JJ
at/IN
$/$
393.4/CD
million/CD
./.
The/DT
combination/NN
of/IN
solid/JJ
loan/NN
growth/NN
with/IN
tight/JJ
expense/NN
control/NN
gave/VBD
Wells/NNP
Fargo/NNP
a/DT
1.25/CD
%/NN
return/NN
on/IN
average/JJ
assets/NNS
for/IN
the/DT
quarter/NN
,/,
about/IN
40/CD
%/NN
higher/JJR
than/IN
Security/NNP
Pacific/NNP
's/POS
and/CC
a/DT
profit/NN
ratio/NN
matched/VBN
by/IN
only/RB
two/CD
or/CC
three/CD
other/JJ
major/JJ
banks/NNS
in/IN
the/DT
U.S/NNP
./.
Wells/NNP
Fargo/NNP
's/POS
return/NN
on/IN
equity/NN
increased/VBD
to/TO
24.4/CD
%/NN
from/IN
23.8/CD
%/NN
./.
Wells/NNP
Fargo/NNP
has/VBZ
sold/VBN
all/DT
of/IN
its/PRP$
non-trade/JJ
loans/NNS
made/VBN
to/TO
less-developed/JJ
countries/NNS
,/,
and/CC
managed/VBD
to/TO
partly/RB
reverse/VB
the/DT
sharp/JJ
rise/NN
in/IN
domestic/JJ
non-accrual/JJ
loans/NNS
,/,
which/WDT
fell/VBD
8/CD
%/NN
from/IN
the/DT
previous/JJ
quarter/NN
to/TO
$/$
806.8/CD
million/CD
from/IN
$/$
880.9/CD
million/CD
./.
But/CC
the/DT
amount/NN
was/VBD
still/RB
39/CD
%/NN
higher/JJR
than/IN
the/DT
year-ago/JJ
level/NN
,/,
and/CC
25/CD
%/NN
higher/JJR
as/IN
a/DT
percentage/NN
of/IN
total/JJ
loans/NNS
./.
That/DT
trend/NN
,/,
and/CC
Wells/NNP
Fargo/NNP
's/POS
heavy/JJ
exposure/NN
to/TO
leveraged/JJ
buy-outs/NNS
,/,
are/VBP
about/IN
the/DT
only/JJ
worries/NNS
analysts/NNS
have/VBP
about/IN
Wells/NNP
Fargo/NNP
's/POS
financial/JJ
picture/NN
./.
Wells/NNP
Fargo/NNP
is/VBZ
rebuilding/VBG
its/PRP$
loan-loss/NN
reserve/NN
,/,
which/WDT
increased/VBD
to/TO
$/$
711/CD
million/CD
at/IN
Sept./NNP
30/CD
from/IN
$/$
664/CD
million/CD
the/DT
previous/JJ
quarter/NN
but/CC
was/VBD
down/IN
from/IN
$/$
852/CD
million/CD
a/DT
year/NN
ago/IN
,/,
when/WRB
the/DT
bank/NN
still/RB
had/VBD
some/DT
shaky/JJ
foreign/JJ
loans/NNS
./.
Manufacturers/NNPS
Hanover/NNP
Manufacturers/NNPS
Hanover/NNP
said/VBD
that/IN
excluding/VBG
the/DT
addition/NN
to/TO
its/PRP$
reserves/NNS
,/,
certain/JJ
tax/NN
benefits/NNS
,/,
and/CC
a/DT
one-time/JJ
$/$
16/CD
million/CD
gain/NN
on/IN
the/DT
sale/NN
of/IN
an/DT
interest/NN
in/IN
a/DT
foreign/JJ
leasing/NN
company/NN
,/,
third-quarter/NN
earnings/NNS
were/VBD
$/$
75/CD
million/CD
./.
The/DT
comparable/JJ
year-earlier/JJ
number/NN
was/VBD
$/$
56/CD
million/CD
,/,
a/DT
spokesman/NN
said/VBD
./.
The/DT
bank/NN
's/POS
additional/JJ
provisions/NNS
brought/VBD
reserves/NNS
for/IN
loans/NNS
to/TO
less-developed/JJ
countries/NNS
to/TO
$/$
2.4/CD
billion/CD
,/,
covering/VBG
36/CD
%/NN
of/IN
its/PRP$
medium/NN
and/CC
long-term/JJ
loans/NNS
outstanding/JJ
to/TO
these/DT
nations/NNS
./.
The/DT
net/JJ
interest/NN
margin/NN
-/:
the/DT
difference/NN
between/IN
the/DT
bank/NN
's/POS
cost/NN
of/IN
funds/NNS
and/CC
what/WP
it/PRP
receives/VBZ
as/IN
interest/NN
payments/NNS
--/:
improved/VBD
in/IN
the/DT
quarter/NN
,/,
as/IN
did/VBD
certain/JJ
areas/NNS
of/IN
wholesale/JJ
banking/NN
./.
Fees/NNS
from/IN
syndicating/VBG
loans/NNS
dropped/VBD
48/CD
%/NN
,/,
to/TO
$/$
21/CD
million/CD
./.
``/``
We/PRP
did/VBD
n't/RB
take/VB
part/NN
in/IN
a/DT
lot/NN
of/IN
deals/NNS
''/''
in/IN
the/DT
quarter/NN
``/``
because/IN
their/PRP$
credit/NN
quality/NN
was/VBD
poor/JJ
,/,
''/''
the/DT
spokesman/NN
said/VBD
./.
Expenses/NNS
unrelated/JJ
to/TO
interest/NN
rose/VBD
5.4/CD
%/NN
,/,
to/TO
$/$
541/CD
million/CD
./.
PNC/NNP
Financial/NNP
PNC/NNP
Financial/NNP
cited/VBD
higher/JJR
income/NN
from/IN
sources/NNS
unrelated/JJ
to/TO
interest/NN
and/CC
said/VBD
it/PRP
continues/VBZ
to/TO
cut/VB
costs/NNS
./.
Net/JJ
interest/NN
income/NN
in/IN
the/DT
third/JJ
quarter/NN
edged/VBD
up/IN
1.4/CD
%/NN
,/,
to/TO
$/$
317.7/CD
million/CD
./.
Trust/NN
income/NN
grew/VBD
15/CD
%/NN
,/,
to/TO
$/$
49.9/CD
million/CD
,/,
while/IN
service/NN
charges/NNS
,/,
fees/NNS
and/CC
commissions/NNS
increased/VBD
22/CD
%/NN
,/,
to/TO
$/$
79.4/CD
million/CD
./.
The/DT
bank/NN
's/POS
total/JJ
allowance/NN
for/IN
credit/NN
losses/NNS
was/VBD
$/$
502.1/CD
million/CD
,/,
or/CC
1.82/CD
%/NN
of/IN
total/JJ
loans/NNS
./.
Prime/NNP
Minister/NNP
Rajiv/NNP
Gandhi/NNP
set/VBD
a/DT
date/NN
next/IN
month/NN
for/IN
general/JJ
elections/NNS
that/IN
some/DT
analysts/NNS
say/VBP
could/MD
cost/VB
him/PRP
and/CC
his/PRP$
ruling/VBG
Congress/NNP
I/NN
Party/NN
control/NN
of/IN
the/DT
government/NN
./.
Other/JJ
analysts/NNS
say/VBP
the/DT
Indian/JJ
leader/NN
could/MD
retain/VB
control/NN
with/IN
a/DT
slim/JJ
majority/NN
or/CC
be/VB
forced/VBN
to/TO
rule/VB
as/IN
the/DT
dominant/JJ
partner/NN
in/IN
a/DT
coalition/NN
with/IN
other/JJ
parties/NNS
./.
Elections/NNS
in/IN
this/DT
large/JJ
,/,
diverse/JJ
and/CC
passionate/JJ
nation/NN
are/VBP
always/RB
hard/JJ
to/TO
predict/VB
./.
Much/RB
depends/VBZ
on/IN
the/DT
opposition/NN
,/,
a/DT
loose/JJ
group/NN
of/IN
regional/JJ
and/CC
ideological/JJ
parties/NNS
led/VBN
by/IN
former/JJ
Gandhi/NNP
cabinet/NN
minister/NN
Vishwanath/NNP
Pratap/NNP
Singh/NNP
./.
The/DT
biggest/JJS
certainty/NN
is/VBZ
that/IN
the/DT
elections/NNS
will/MD
be/VB
a/DT
vote/NN
for/IN
or/CC
against/IN
Mr./NNP
Gandhi/NNP
and/CC
his/PRP$
five/CD
years/NNS
in/IN
power/NN
--/:
five/CD
years/NNS
of/IN
ups/NNS
and/CC
downs/NNS
,/,
promises/NNS
and/CC
disappointments/NNS
and/CC
wide/JJ
fluctuations/NNS
in/IN
popularity/NN
./.
Yesterday/NN
,/,
four/CD
days/NNS
after/IN
an/DT
unusual/JJ
parliamentary/JJ
defeat/NN
for/IN
the/DT
ruling/VBG
party/NN
,/,
Mr./NNP
Gandhi/NNP
called/VBD
elections/NNS
for/IN
the/DT
lower/JJR
house/NN
of/IN
Parliament/NNP
on/IN
Nov./NNP
22/CD
and/CC
24/CD
./.
The/DT
elections/NNS
will/MD
be/VB
held/VBN
in/IN
different/JJ
states/NNS
on/IN
one/CD
of/IN
the/DT
two/CD
days/NNS
./.
The/DT
lower/JJR
house/NN
's/POS
five-year/JJ
term/NN
expires/VBZ
in/IN
January/NNP
;/:
the/DT
Parliament/NNP
's/POS
upper/JJ
house/NN
is/VBZ
appointed/VBN
./.
The/DT
elections/NNS
will/MD
be/VB
a/DT
rigorous/JJ
test/NN
for/IN
the/DT
45-year-old/JJ
prime/JJ
minister/NN
and/CC
Congress/NNP
I/NN
which/WDT
in/IN
various/JJ
forms/NNS
has/VBZ
ruled/VBN
for/IN
40/CD
of/IN
India/NNP
's/POS
42/CD
years/NNS
of/IN
independence/NN
./.
After/IN
a/DT
landslide/NN
win/NN
in/IN
1984/CD
in/IN
polls/NNS
held/VBN
after/IN
the/DT
assassination/NN
of/IN
his/PRP$
mother/NN
,/,
Indira/NNP
Gandhi/NNP
,/,
Mr./NNP
Gandhi/NNP
saw/VBD
his/PRP$
popularity/NN
begin/VB
a/DT
roller/NN
coaster/NN
ride/NN
./.
His/PRP$
early/JJ
promises/NNS
to/TO
make/VB
India/NNP
a/DT
modern/JJ
nation/NN
remain/VBP
bogged/VBD
down/IN
in/IN
bloated/JJ
bureaucracy/NN
./.
His/PRP$
pledge/NN
to/TO
clean/VB
up/IN
local/JJ
administration/NN
and/CC
Indian/JJ
politics/NNS
,/,
including/VBG
his/PRP$
own/JJ
party/NN
,/,
went/VBD
unfulfilled/JJ
./.
His/PRP$
``/``
Mr./NNP
Clean/NNP
''/''
image/NN
was/VBD
muddied/VBN
by/IN
an/DT
arms-kickback/NN
scandal/NN
,/,
which/WDT
will/MD
be/VB
a/DT
major/JJ
campaign/NN
issue/NN
./.
Some/DT
analysts/NNS
predict/VBP
that/DT
disappointment/NN
in/IN
Mr./NNP
Gandhi/NNP
's/POS
spent/VBN
pledge/NN
to/TO
reduce/VB
corruption/NN
and/CC
heavy-handed/JJ
local/JJ
government/NN
will/MD
crest/VB
at/IN
the/DT
polls/NNS
./.
``/``
There/EX
's/VBZ
a/DT
wide/JJ
feeling/NN
of/IN
indignation/NN
across/IN
the/DT
country/NN
,/,
''/''
says/VBZ
Bhabani/NNP
Sen/NNP
Gupta/NNP
of/IN
the/DT
Center/NNP
for/IN
Policy/NNP
Research/NNP
,/,
in/IN
New/NNP
Delhi/NNP
./.
``/``
I/PRP
think/VBP
the/DT
people/NNS
will/MD
be/VB
judging/VBG
the/DT
regime/NN
by/IN
a/DT
petty/JJ
policeman/NN
,/,
by/IN
a/DT
corrupt/JJ
revenue/NN
collector/NN
./.
This/DT
could/MD
be/VB
a/DT
big/JJ
protest/NN
against/IN
an/DT
administrative/JJ
failure/NN
./.
''/''
Even/RB
if/IN
the/DT
Congress/NNP
I/NN
control/NN
of/IN
the/DT
government/NN
,/,
Mr./NNP
Gandhi/NNP
's/POS
ability/NN
to/TO
push/VB
through/IN
major/JJ
initiatives/NNS
might/MD
be/VB
hobbled/VBN
by/IN
a/DT
thinner/JJR
majority/NN
./.
Economic/JJ
analysts/NNS
call/VBP
his/PRP$
trail-blazing/JJ
liberalization/NN
of/IN
the/DT
Indian/JJ
economy/NN
incomplete/JJ
,/,
and/CC
many/JJ
are/VBP
hoping/VBG
for/IN
major/JJ
new/JJ
liberalizations/NNS
if/IN
he/PRP
is/VBZ
returned/VBN
firmly/RB
to/TO
power/NN
./.
The/DT
Lok/NNP
Sabha/NNP
,/,
or/CC
lower/JJR
house/NN
of/IN
Parliament/NNP
,/,
has/VBZ
542/CD
elected/VBN
and/CC
two/CD
appointed/VBN
seats/NNS
./.
In/IN
1984/CD
,/,
the/DT
Congress/NNP
I/NN
405/CD
seats/NNS
,/,
the/DT
largest/JJS
victory/NN
in/IN
the/DT
history/NN
of/IN
Indian/JJ
democracy/NN
./.
The/DT
landslide/NN
was/VBD
fueled/VBN
by/IN
panic/NN
that/WDT
prevailed/VBD
in/IN
India/NNP
at/IN
the/DT
time/NN
./.
Mrs./NNP
Gandhi/NNP
had/VBD
been/VBN
assassinated/VBN
by/IN
separatist/JJ
Sikhs/NNPS
,/,
and/CC
many/JJ
Indians/NNPS
feared/VBD
their/PRP$
country/NN
might/MD
split/VB
apart/RB
./.
In/IN
the/DT
previous/JJ
three/CD
general/JJ
elections/NNS
,/,
similar/JJ
national/JJ
issues/NNS
clinched/VBD
the/DT
vote/NN
./.
In/IN
1971/CD
,/,
the/DT
Congress/NNP
Party/NNP
won/VBD
after/IN
India/NNP
's/POS
victory/NN
in/IN
the/DT
Bangladesh/NNP
war/NN
./.
In/IN
1977/CD
,/,
Mrs./NNP
Gandhi/NNP
was/VBD
thrown/VBN
out/IN
of/IN
office/NN
after/IN
her/PRP$
19-month/JJ
emergency/NN
rule/NN
,/,
and/CC
in/IN
1980/CD
,/,
after/IN
her/PRP$
successors/NNS
made/VBD
a/DT
mess/NN
of/IN
their/PRP$
three/CD
years/NNS
in/IN
power/NN
,/,
she/PRP
was/VBD
restored/VBN
to/TO
office/NN
./.
Most/RBS
political/JJ
analysts/NNS
say/VBP
that/IN
if/IN
Mr./NNP
Gandhi/NNP
's/POS
opposition/NN
unites/VBZ
to/TO
field/VB
single/JJ
candidates/NNS
in/IN
most/JJS
precincts/NNS
,/,
the/DT
Congress/NNP
I/NN
big/JJ
./.
But/CC
if/IN
the/DT
opposition/NN
remains/VBZ
fractured/VBN
,/,
the/DT
Congress/NNP
I/NN
a/DT
small/JJ
majority/NN
,/,
or/CC
lead/VB
a/DT
coalition/NN
government/NN
./.
Chimanbhai/NNP
Mehta/NNP
,/,
a/DT
parliamentarian/NN
and/CC
former/JJ
Gandhi/NNP
ally/NN
,/,
predicts/VBZ
Congress/NNP
I/NN
150/CD
seats/NNS
,/,
a/DT
quarter/NN
of/IN
the/DT
house/NN
,/,
if/IN
the/DT
opposition/NN
fields/VBZ
single/JJ
candidates/NNS
in/IN
80/CD
%/NN
of/IN
the/DT
races/NNS
./.
Analysts/NNS
say/VBP
the/DT
opposition/NN
will/MD
struggle/VB
this/DT
week/NN
to/TO
unite/VB
,/,
and/CC
its/PRP$
success/NN
will/MD
be/VB
clear/JJ
only/RB
when/WRB
it/PRP
announces/VBZ
its/PRP$
final/JJ
list/NN
of/IN
parliamentary/JJ
candidates/NNS
./.
The/DT
arms-kickback/NN
scandal/NN
is/VBZ
likely/JJ
to/TO
be/VB
one/CD
of/IN
the/DT
big/JJ
talking/VBG
points/NNS
in/IN
the/DT
campaign/NN
,/,
but/CC
it/PRP
's/VBZ
unclear/JJ
how/WRB
it/PRP
is/VBZ
viewed/VBN
by/IN
average/JJ
Indian/JJ
voters/NNS
./.
In/IN
1986/CD
,/,
India/NNP
signed/VBD
a/DT
$/$
1.4/CD
billion/CD
contract/NN
with/IN
AB/NNP
Bofors/NNP
,/,
a/DT
unit/NN
of/IN
Nobel/NNP
Industries/NNPS
Sweden/NNP
AB/NNP
,/,
to/TO
purchase/VB
400/CD
artillery/NN
pieces/NNS
./.
The/DT
contract/NN
was/VBD
negotiated/VBN
by/IN
the/DT
countries/NNS
'/POS
two/CD
prime/JJ
ministers/NNS
,/,
and/CC
was/VBD
supposed/VBN
to/TO
be/VB
free/JJ
of/IN
commissions/NNS
or/CC
agents/NNS
'/POS
costs/NNS
./.
In/IN
April/NNP
1987/CD
,/,
evidence/NN
surfaced/VBD
that/IN
commissions/NNS
were/VBD
paid/VBN
./.
The/DT
opposition/NN
charged/VBD
that/IN
the/DT
money/NN
was/VBD
used/VBN
to/TO
bribe/VB
Indian/JJ
government/NN
officials/NNS
,/,
an/DT
allegation/NN
denied/VBN
by/IN
Mr./NNP
Gandhi/NNP
's/POS
administration/NN
./.
But/CC
many/JJ
of/IN
his/PRP$
statements/NNS
on/IN
the/DT
issue/NN
in/IN
Parliament/NNP
subsequently/RB
were/VBD
proven/VBN
wrong/JJ
by/IN
documentary/JJ
evidence/NN
./.
The/DT
scandal/NN
has/VBZ
faded/VBN
and/CC
flared/VBN
,/,
but/CC
recent/JJ
disclosures/NNS
propelled/VBD
it/PRP
back/RB
onto/IN
the/DT
front/JJ
pages/NNS
,/,
and/CC
that/DT
has/VBZ
helped/VBN
galvanize/VB
the/DT
opposition/NN
,/,
which/WDT
last/JJ
week/NN
blocked/VBD
passage/NN
of/IN
two/CD
constitutional/JJ
amendment/NN
bills/NNS
./.
It/PRP
was/VBD
the/DT
first/JJ
time/NN
in/IN
20/CD
years/NNS
that/IN
such/JJ
government/NN
bills/NNS
were/VBD
defeated/VBN
./.
In/IN
a/DT
country/NN
where/WRB
a/DT
bribe/NN
is/VBZ
needed/VBN
to/TO
get/VB
a/DT
phone/NN
,/,
a/DT
job/NN
,/,
and/CC
even/RB
into/IN
a/DT
school/NN
,/,
the/DT
name/NN
Bofors/NNP
has/VBZ
become/VBN
a/DT
potent/JJ
rallying/NN
cry/NN
against/IN
the/DT
government/NN
./.
That/DT
illustrates/VBZ
the/DT
kind/NN
of/IN
disappointment/NN
many/JJ
Indians/NNPS
feel/VBP
toward/IN
Mr./NNP
Gandhi/NNP
,/,
whom/WP
they/PRP
zestfully/RB
elected/VBD
and/CC
enthusiastically/RB
supported/VBD
in/IN
his/PRP$
first/JJ
two/CD
years/NNS
in/IN
power/NN
./.
His/PRP$
term/NN
has/VBZ
produced/VBN
no/DT
spectacular/JJ
failures/NNS
in/IN
politics/NNS
,/,
in/IN
the/DT
economy/NN
or/CC
on/IN
the/DT
military/JJ
front/NN
,/,
and/CC
has/VBZ
chalked/VBN
up/IN
some/DT
successes/NNS
./.
But/CC
the/DT
average/JJ
Indian/NNP
had/VBD
tremendous/JJ
hope/NN
in/IN
the/DT
youthful/JJ
leader/NN
and/CC
his/PRP$
promise/NN
to/TO
make/VB
both/DT
government/NN
and/CC
the/DT
ruling/VBG
party/NN
more/JJR
effective/JJ
and/CC
less/RBR
corrupt/JJ
./.
His/PRP$
failures/NNS
in/IN
those/DT
two/CD
areas/NNS
deeply/RB
,/,
and/CC
sometimes/RB
bitterly/RB
,/,
disappointed/VBN
many/JJ
Indians/NNPS
./.
``/``
We/PRP
do/VBP
n't/RB
like/VB
the/DT
Congress/NNP
I/NN
Sooraji/NNP
Jath/NNP
,/,
a/DT
farmer/NN
in/IN
the/DT
western/JJ
state/NN
of/IN
Gujarat/NN
./.
``/``
The/DT
Congress/NNP
government/NN
is/VBZ
taking/VBG
the/DT
farmers/NNS
'/POS
bread/NN
and/CC
not/RB
giving/VBG
us/PRP
any/DT
support/NN
./.
When/WRB
there/EX
are/VBP
well/NN
problems/NNS
,/,
light/NN
problems/NNS
,/,
road/NN
problems/NNS
,/,
the/DT
government/NN
tells/VBZ
us/PRP
to/TO
forget/VB
it/PRP
./.
''/''
The/DT
greatest/JJS
thing/NN
going/VBG
for/IN
Mr./NNP
Gandhi/NNP
and/CC
the/DT
Congress/NNP
I/NN
Party/NN
is/VBZ
the/DT
poor/JJ
reputation/NN
of/IN
the/DT
opposition/NN
./.
Even/RB
if/IN
it/PRP
unites/VBZ
for/IN
the/DT
elections/NNS
,/,
its/PRP$
coherence/NN
is/VBZ
likely/JJ
to/TO
be/VB
temporary/JJ
./.
When/WRB
the/DT
Congress/NNP
I/NN
the/DT
1977/CD
election/NN
,/,
following/VBG
Mrs./NNP
Gandhi/NNP
's/POS
hated/VBN
emergency/NN
rule/NN
,/,
a/DT
similar/JJ
coalition/NN
took/VBD
power/NN
and/CC
then/RB
disintegrated/VBD
./.
Many/JJ
Indians/NNPS
fear/VBP
a/DT
repeat/NN
of/IN
that/DT
experience/NN
./.
March/NNP
24/CD
,/,
1986/CD
:/:
AB/NNP
Bofors/NNP
,/,
a/DT
unit/NN
of/IN
Nobel/NNP
Industries/NNPS
Sweden/NNP
AB/NNP
,/,
enters/VBZ
into/IN
a/DT
$/$
1.4/CD
billion/CD
contract/NN
with/IN
India/NNP
's/POS
Defense/NNP
Ministry/NNP
to/TO
supply/VB
400/CD
Bofors/NNP
FH-77B/NNP
155-mm/CD
field/NN
howitzer/NN
guns/NNS
./.
In/IN
1985/CD
,/,
Prime/NNP
Minister/NNP
Rajiv/NNP
Gandhi/NNP
,/,
in/IN
his/PRP$
talks/NNS
with/IN
then/JJ
Swedish/NNP
Prime/NNP
Minister/NNP
Olof/NNP
Palme/NNP
,/,
imposed/VBD
the/DT
condition/NN
that/IN
the/DT
contract/NN
have/VB
no/DT
middlemen/NNS
./.
April/NNP
16/CD
,/,
1987/CD
:/:
Swedish/NNP
National/NNP
Radio/NNP
reports/VBZ
that/IN
about/IN
$/$
40/CD
million/CD
--/:
nearly/RB
3/CD
%/NN
of/IN
the/DT
total/JJ
contract/NN
--/:
was/VBD
paid/VBN
by/IN
Bofors/NNP
as/IN
commissions/NNS
to/TO
middlemen/NNS
./.
June/NNP
1/CD
,/,
1987/CD
:/:
Sweden/NNP
's/POS
National/NNP
Audit/NNP
Bureau/NNP
releases/VBZ
its/PRP$
report/NN
confirming/VBG
payment/NN
of/IN
about/IN
$/$
40/CD
million/CD
to/TO
unidentified/JJ
Indians/NNPS
./.
The/DT
report/NN
says/VBZ
that/IN
investigations/NNS
were/VBD
severely/RB
hampered/VBN
by/IN
lack/NN
of/IN
cooperation/NN
from/IN
Bofors/NNP
./.
Bofors/NNP
says/VBZ
it/PRP
ca/MD
n't/RB
disclose/VB
the/DT
names/NNS
of/IN
the/DT
middlemen/NNS
because/IN
it/PRP
would/MD
jeopardize/VB
industrial/JJ
confidentiality/NN
./.
A/DT
portion/NN
of/IN
the/DT
report/NN
containing/VBG
names/NNS
of/IN
the/DT
middlemen/NNS
is/VBZ
withheld/VBN
by/IN
officials/NNS
citing/VBG
bank/NN
secrecy/NN
requirements/NNS
./.
Aug./NNP
6/CD
,/,
1987/CD
:/:
Prime/NNP
Minister/NNP
Gandhi/NNP
tells/VBZ
the/DT
Indian/NNP
Parliament/NNP
,/,
``/``
.../:
neither/CC
I/PRP
nor/CC
any/DT
member/NN
of/IN
my/PRP$
family/NN
has/VBZ
received/VBN
any/DT
consideration/NN
in/IN
these/DT
transactions/NNS
./.
That/DT
is/VBZ
the/DT
truth/NN
./.
''/''
Aug./NNP
26/CD
,/,
1987/CD
:/:
Bofors/NNP
admits/VBZ
payments/NNS
of/IN
$/$
41/CD
million/CD
to/TO
middlemen/NNS
./.
April/NNP
22/CD
,/,
1988/CD
:/:
The/DT
Hindu/NNP
newspaper/NN
publishes/VBZ
facsimiles/NNS
of/IN
bank/NN
documents/NNS
for/IN
foreign-exchange/JJ
remittances/NNS
and/CC
letters/NNS
between/IN
Bofors/NNP
and/CC
certain/JJ
private/JJ
companies/NNS
related/VBN
to/TO
the/DT
sale/NN
of/IN
the/DT
guns/NNS
to/TO
India/NNP
./.
April/NNP
26/CD
,/,
1988/CD
:/:
A/DT
parliamentary/JJ
investigative/JJ
committee/NN
dominated/VBN
by/IN
the/DT
Congress/NNP
I/NN
Party/NNP
concludes/VBZ
that/IN
there/EX
were/VBD
no/DT
middlemen/NNS
in/IN
the/DT
deal/NN
and/CC
no/DT
payment/NN
to/TO
any/DT
Indian/JJ
individual/NN
or/CC
company/NN
./.
July/NNP
18/CD
,/,
1989/CD
:/:
The/DT
comptroller/NN
and/CC
auditor-general/NN
of/IN
India/NNP
reports/VBZ
serious/JJ
lapses/NNS
in/IN
the/DT
government/NN
's/POS
technical/JJ
and/CC
financial/JJ
evaluation/NN
of/IN
the/DT
Bofors/NNP
deal/NN
./.
Sept./NNP
15/CD
,/,
1989/CD
:/:
Retired/VBN
army/NN
Chief/NNP
of/IN
Staff/NNP
Krishnaswami/NNP
Sundarji/NNP
discloses/VBZ
in/IN
an/DT
interview/NN
that/IN
he/PRP
suggested/VBD
in/IN
May/NNP
1987/CD
that/IN
the/DT
government/NN
cancel/VB
the/DT
Bofors/NNP
contract/NN
./.
According/VBG
to/TO
Gen./NNP
Sundarji/NNP
,/,
that/WDT
would/MD
have/VB
forced/VBN
Bofors/NNP
to/TO
disclose/VB
the/DT
names/NNS
of/IN
the/DT
middlemen/NNS
who/WP
received/VBD
kickbacks/NNS
from/IN
the/DT
company/NN
./.
His/PRP$
recommendation/NN
was/VBD
rejected/VBN
by/IN
the/DT
government/NN
./.
Oct./NNP
9./CD
1989/CD
:/:
The/DT
Hindu/NNP
newspaper/NN
publishes/VBZ
the/DT
withheld/VBN
portion/NN
of/IN
the/DT
Swedish/NNP
National/NNP
Audit/NNP
Bureau/NNP
's/POS
report/NN
./.
The/DT
disclosures/NNS
state/NN
that/IN
commissions/NNS
were/VBD
paid/VBN
by/IN
Bofors/NNP
to/TO
an/DT
Indian/JJ
agent/NN
of/IN
the/DT
arms/NNS
company/NN
./.
Parsow/NNP
Partnership/NNP
Ltd./NNP
and/CC
Elkhorn/NNP
Partners/NNPS
L.P./NNP
said/VBD
they/PRP
may/MD
seek/VB
proposals/NNS
from/IN
third/JJ
parties/NNS
relating/VBG
to/TO
a/DT
sale/NN
or/CC
restructuring/VBG
of/IN
CACI/NNP
International/NNP
Inc/NNP
./.
In/IN
a/DT
filing/NN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
,/,
Parsow/NNP
and/CC
Elkhorn/NNP
,/,
which/WDT
together/RB
hold/VBP
8.685/CD
%/NN
of/IN
CACI/NNP
's/POS
common/JJ
shares/NNS
,/,
said/VBD
they/PRP
think/VBP
it/PRP
is/VBZ
in/IN
the/DT
best/JJS
interest/NN
of/IN
CACI/NNP
stockholders/NNS
that/IN
the/DT
company/NN
be/VB
sold/VBN
./.
CACI/NNP
,/,
based/VBN
in/IN
Arlington/NNP
,/,
Va./NNP
,/,
said/VBD
it/PRP
had/VBD
n't/RB
seen/VBN
the/DT
filing/NN
by/IN
Parsow/NNP
and/CC
Elkhorn/NNP
and/CC
therefore/RB
had/VBD
no/DT
comment/NN
./.
The/DT
partnerships/NNS
said/VBD
they/PRP
may/MD
seek/VB
board/NN
representation/NN
,/,
and/CC
they/PRP
may/MD
seek/VB
the/DT
support/NN
of/IN
CACI/NNP
's/POS
board/NN
and/CC
other/JJ
major/JJ
shareholders/NNS
in/IN
connection/NN
with/IN
their/PRP$
plans/NNS
./.
According/VBG
to/TO
the/DT
filing/NN
,/,
Parsow/NNP
and/CC
Elkhorn/NNP
are/VBP
based/VBN
in/IN
Elkhorn/NNP
,/,
Neb./NNP
,/,
and/CC
are/VBP
controlled/VBN
by/IN
the/DT
same/JJ
general/JJ
partner/NN
,/,
Alan/NNP
S./NNP
Parsow/NNP
./.
Their/PRP$
combined/VBN
stake/NN
consists/VBZ
of/IN
880,500/CD
CACI/NNP
common/JJ
shares/NNS
,/,
including/VBG
86,500/CD
shares/NNS
bought/VBN
in/IN
the/DT
past/JJ
60/CD
days/NNS
at/IN
$/$
2.3125/CD
to/TO
$/$
2.4375/CD
a/DT
share/NN
./.
Additional/JJ
shares/NNS
may/MD
be/VB
bought/VBN
or/CC
sold/VBN
in/IN
the/DT
open/JJ
market/NN
,/,
in/IN
private/JJ
transactions/NNS
or/CC
otherwise/RB
,/,
depending/VBG
on/IN
market/NN
conditions/NNS
and/CC
other/JJ
factors/NNS
./.
The/DT
inverse/NN
trading/NN
relationship/NN
between/IN
bonds/NNS
and/CC
stocks/NNS
was/VBD
interrupted/VBN
yesterday/NN
as/IN
bonds/NNS
fell/VBD
despite/IN
a/DT
modest/JJ
decline/NN
in/IN
stock/NN
prices/NNS
./.
But/CC
bond/NN
investors/NNS
continue/VBP
to/TO
keep/VB
a/DT
close/JJ
watch/NN
on/IN
the/DT
jittery/JJ
stock/NN
market/NN
./.
In/IN
early/JJ
trading/NN
,/,
investors/NNS
were/VBD
bidding/VBG
bond/NN
prices/NNS
higher/JJR
as/IN
stocks/NNS
tumbled/VBD
and/CC
fears/NNS
mounted/VBD

that/IN
Friday/NNP
's/POS
stock/NN
market/NN
debacle/NN
would/MD
be/VB
repeated/VBN
./.
But/CC
a/DT
partial/JJ
recovery/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
,/,
which/WDT
had/VBD
been/VBN
down/IN
more/RBR
than/IN
60/CD
points/NNS
in/IN
midmorning/NN
,/,
dashed/VBD
those/DT
expectations/NNS
./.
Treasury/NN
bonds/NNS
also/RB
were/VBD
hurt/VBN
late/RB
in/IN
the/DT
day/NN
by/IN
a/DT
$/$
4/CD
billion/CD
offering/NN
by/IN
the/DT
Tennessee/NNP
Valley/NNP
Authority/NNP
and/CC
the/DT
prospect/NN
of/IN
a/DT
huge/JJ
amount/NN
of/IN
new/JJ
agency/NN
debt/NN
./.
``/``
Bond/NN
investors/NNS
were/VBD
hoping/VBG
that/IN
stock/NN
prices/NNS
would/MD
continue/VB
to/TO
fall/VB
,/,
''/''
said/VBD
Roger/NNP
Early/RB
,/,
a/DT
vice/NN
president/NN
at/IN
Federated/NNP
Investors/NNPS
Inc./NNP
,/,
Pittsburgh/NNP
./.
``/``
When/WRB
stocks/NNS
stabilized/VBD
,/,
that/DT
was/VBD
a/DT
disappointment/NN
./.
''/''
Meanwhile/RB
,/,
for/IN
the/DT
second/JJ
straight/JJ
day/NN
,/,
the/DT
bond/NN
market/NN
paid/VBD
little/JJ
attention/NN
to/TO
the/DT
Federal/NNP
Reserve/NNP
's/POS
open/JJ
market/NN
operations/NNS
./.
Fed/NNP
officials/NNS
injected/VBD
more/JJR
cash/NN
into/IN
the/DT
banking/NN
system/NN
by/IN
arranging/VBG
$/$
1.5/CD
billion/CD
of/IN
repurchase/VBN
agreements/NNS
during/IN
the/DT
usual/JJ
pre-noon/NN
intervention/NN
period/NN
./.
The/DT
move/NN
was/VBD
meant/VBN
to/TO
keep/VB
a/DT
lid/NN
on/IN
interest/NN
rates/NNS
and/CC
to/TO
boost/VB
investor/NN
confidence/NN
./.
``/``
The/DT
intervention/NN
has/VBZ
been/VBN
friendly/JJ
,/,
meaning/VBG
that/IN
they/PRP
really/RB
did/VBD
n't/RB
have/VB
to/TO
do/VB
it/PRP
,/,
''/''
said/VBD
Maria/NNP
Fiorini/NNP
Ramirez/NNP
,/,
money-market/NN
economist/NN
at/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc/NNP
./.
She/PRP
said/VBD
a/DT
more/RBR
aggressive/JJ
move/NN
was/VBD
n't/RB
needed/VBN
./.
The/DT
Fed/NNP
also/RB
appears/VBZ
reluctant/JJ
to/TO
ease/VB
credit/NN
conditions/NNS
further/RB
./.
It/PRP
already/RB
has/VBZ
allowed/VBN
the/DT
closely/RB
watched/VBN
federal/JJ
funds/NNS
rate/NN
to/TO
decline/VB
1\/4/CD
percentage/NN
point/NN
to/TO
about/IN
8/CD
3\/4/CD
%/NN
from/IN
its/PRP$
previous/JJ
target/NN
level/NN
of/IN
about/IN
9/CD
%/NN
./.
The/DT
rate/NN
,/,
which/WDT
banks/NNS
charge/VBP
each/DT
other/JJ
on/IN
overnight/JJ
loans/NNS
,/,
is/VBZ
considered/VBN
an/DT
early/JJ
signal/NN
of/IN
changes/NNS
in/IN
Fed/NNP
policy/NN
./.
It/PRP
ended/VBD
at/IN
about/IN
8/CD
11\/16/CD
%/NN
yesterday/NN
,/,
but/CC
was/VBD
as/RB
low/JJ
as/IN
8/CD
1\/2/CD
%/NN
Monday/NNP
./.
The/DT
Treasury/NNP
's/POS
benchmark/NN
30-year/JJ
bond/NN
fell/VBD
more/JJR
than/IN
1\/2/CD
point/NN
,/,
or/CC
over/IN
$/$
5/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
,/,
while/IN
the/DT
yield/NN
moved/VBD
above/IN
8/CD
%/NN
for/IN
the/DT
first/JJ
time/NN
since/IN
Thursday/NNP
./.
Investment-grade/JJ
corporate/JJ
,/,
municipal/JJ
and/CC
mortgage-backed/JJ
securities/NNS
also/RB
fell/VBD
./.
But/CC
most/JJS
junk/NN
bonds/NNS
closed/VBD
unchanged/JJ
after/IN
opening/VBG
slightly/RB
higher/JJR
on/IN
bargain-hunting/NN
by/IN
institutional/JJ
investors/NNS
./.
Some/DT
so-called/JJ
high-quality/NN
junk/NN
issues/NNS
,/,
such/JJ
as/IN
R.H./NNP
Macy/NNP
&/CC
Co./NNP
's/POS
14/CD
1\/2/CD
%/NN
subordinated/VBN
debentures/NNS
,/,
rose/VBD
./.
The/DT
Macy/NNP
's/POS
issue/NN
closed/VBD
up/IN
about/IN
one/CD
point/NN
at/IN
a/DT
bid/NN
price/NN
of/IN
97/CD
./.
The/DT
TVA/NNP
's/POS
public/JJ
debt/NN
offering/VBG
was/VBD
its/PRP$
first/JJ
in/IN
15/CD
years/NNS
./.
Strong/JJ
investor/NN
demand/NN
prompted/VBD
it/PRP
to/TO
boost/VB
the/DT
size/NN
of/IN
the/DT
issue/NN
from/IN
$/$
3/CD
billion/CD
./.
Traders/NNS
said/VBD
hedging/VBG
related/VBN
to/TO
the/DT
TVA/NNP
pricing/NN
also/RB
pressured/VBD
Treasury/NN
bonds/NNS
./.
``/``
Underwriters/NNS
of/IN
the/DT
TVA/NNP
bonds/NNS
reduced/VBD
their/PRP$
market/NN
risk/NN
by/IN
selling/VBG
Treasurys/NNS
to/TO
cover/VB
at/IN
least/JJS
part/NN
of/IN
their/PRP$
TVA/NNP
holdings/NNS
,/,
''/''
said/VBD
James/NNP
R./NNP
Capra/NNP
,/,
a/DT
senior/JJ
vice/NN
president/NN
at/IN
Shearson/NNP
Lehman/NNP
Government/NNP
Securities/NNPS
Inc/NNP
./.
The/DT
TVA/NNP
bonds/NNS
also/RB
``/``
served/VBD
to/TO
remind/VB
the/DT
market/NN
that/IN
there/EX
will/MD
be/VB
even/RB
more/RBR
new/JJ
supply/NN
,/,
''/''
said/VBD
Lawrence/NNP
N./NNP
Leuzzi/NNP
,/,
a/DT
managing/VBG
director/NN
at/IN
S.G./NNP
Warburg/NNP
Securities/NNPS
&/CC
Co/NNP
./.
Today/NN
the/DT
Treasury/NNP
will/MD
announce/VB
the/DT
size/NN
of/IN
its/PRP$
next/JJ
two-year/JJ
note/NN
sale/NN
and/CC
Resolution/NNP
Funding/NNP
Corp./NNP
will/MD
announce/VB
details/NNS
of/IN
its/PRP$
first/JJ
bond/NN
offering/NN
./.
Some/DT
traders/NNS
estimate/VBP
$/$
9.75/CD
billion/CD
of/IN
new/JJ
two-year/JJ
Treasurys/NNS
will/MD
be/VB
sold/VBN
next/JJ
week/NN
,/,
and/CC
they/PRP
expect/VBP
Refcorp/NNP
to/TO
offer/VB
$/$
4/CD
billion/CD
to/TO
$/$
6/CD
billion/CD
of/IN
long-term/JJ
``/``
bailout/NN
''/''
bonds/NNS
./.
Refcorp/NNP
was/VBD
created/VBN
to/TO
help/VB
fund/VB
the/DT
thrift/NN
bailout/NN
./.
Another/DT
agency/NN
issue/NN
came/VBD
to/TO
market/NN
yesterday/NN
./.
The/DT
Office/NNP
of/IN
Finance/NNP
of/IN
the/DT
Federal/NNP
Home/NNP
Loan/NNP
Banks/NNPS
said/VBD
it/PRP
priced/VBD
a/DT
four-part/JJ
$/$
2.27/CD
billion/CD
bond/NN
offering/VBG
for/IN
the/DT
banks/NNS
to/TO
yield/VB
from/IN
8.125/CD
%/NN
to/TO
8.375/CD
%/NN
./.
The/DT
release/NN
of/IN
several/JJ
economic/JJ
reports/NNS
had/VBD
little/JJ
impact/NN
on/IN
the/DT
market/NN
,/,
including/VBG
a/DT
report/NN
that/IN
the/DT
U.S./NNP
trade/NN
deficit/NN
expanded/VBN
to/TO
a/DT
surprisingly/RB
wide/JJ
$/$
10.77/CD
billion/CD
in/IN
August/NNP
,/,
up/IN
from/IN
a/DT
revised/VBN
$/$
8.24/CD
billion/CD
in/IN
July/NNP
./.
The/DT
August/NNP
gap/NN
was/VBD
expected/VBN
to/TO
have/VB
expanded/VBN
to/TO
$/$
9.1/CD
billion/CD
./.
Treasury/NNP
Securities/NNPS
Treasury/NN
securities/NNS
were/VBD
essentially/RB
flat/JJ
to/TO
about/IN
1\/2/CD
point/NN
lower/JJR
./.
The/DT
benchmark/NN
30-year/JJ
bond/NN
was/VBD
quoted/VBN
late/RB
at/IN
100/CD
28\/32/CD
to/TO
yield/VB
8.04/CD
%/NN
,/,
compared/VBN
with/IN
101/CD
19\/32/CD
to/TO
yield/VB
7.97/CD
%/NN
Monday/NNP
./.
The/DT
latest/JJS
10-year/JJ
notes/NNS
were/VBD
quoted/VBN
late/RB
at/IN
99/CD
25\/32/CD
to/TO
yield/VB
8.01/CD
%/NN
,/,
compared/VBN
with/IN
100/CD
1\/32/CD
to/TO
yield/VB
7.97/CD
%/NN
./.
Short-term/JJ
rates/NNS
increased/VBD
./.
The/DT
discount/NN
rate/NN
on/IN
three-month/JJ
bills/NNS
rose/VBD
to/TO
7.52/CD
%/NN
for/IN
a/DT
bond-equivalent/JJ
yield/NN
of/IN
7.75/CD
%/NN
./.
The/DT
rate/NN
on/IN
six-month/JJ
bills/NNS
rose/VBD
to/TO
7.53/CD
%/NN
for/IN
a/DT
bond-equivalent/JJ
yield/NN
of/IN
7.92/CD
%/NN
./.
Corporate/NNP
,/,
Other/NNP
Issues/NNPS
Investment-grade/JJ
corporate/JJ
bonds/NNS
ended/VBD
1\/4/CD
to/TO
1\/2/CD
point/NN
lower/JJR
,/,
while/IN
most/JJS
junk/NN
bonds/NNS
ended/VBD
unchanged/JJ
./.
The/DT
TVA/NNP
's/POS
huge/JJ
$/$
4/CD
billion/CD
offering/NN
dominated/VBD
attention/NN
in/IN
the/DT
new-issue/JJ
market/NN
./.
TVA/NNP
offered/VBD
$/$
2/CD
billion/CD
of/IN
30-year/JJ
bonds/NNS
priced/VBN
to/TO
yield/VB
9.06/CD
%/NN
;/:
$/$
1/CD
billion/CD
in/IN
10-year/JJ
notes/NNS
priced/VBN
to/TO
yield/VB
8.42/CD
%/NN
;/:
and/CC
$/$
1/CD
billion/CD
in/IN
five-year/JJ
notes/NNS
priced/VBN
to/TO
yield/VB
8.33/CD
%/NN
./.
The/DT
TVA/NNP
,/,
which/WDT
operates/VBZ
one/CD
of/IN
the/DT
nation/NN
's/POS
largest/JJS
electric/JJ
power/NN
systems/NNS
,/,
is/VBZ
a/DT
corporation/NN
wholly/RB
owned/VBN
by/IN
the/DT
U.S./NNP
government/NN
./.
Yesterday/NN
's/POS
bond/NN
sale/NN
was/VBD
part/NN
of/IN
a/DT
$/$
6.7/CD
billion/CD
refinancing/VBG
plan/NN
to/TO
pay/VB
off/IN
high-interest/JJ
debt/NN
the/DT
TVA/NNP
owes/VBZ
the/DT
Federal/NNP
Financing/NNP
Bank/NNP
,/,
an/DT
arm/NN
of/IN
the/DT
Treasury/NN
./.
Meanwhile/RB
,/,
Lockheed/NNP
Corp./NNP
priced/VBD
a/DT
$/$
300/CD
million/CD
note/NN
offering/VBG
to/TO
yield/VB
9.39/CD
%/NN
./.
Mortgage-Backed/NNP
Securities/NNPS
The/DT
derivative/JJ
mortgage-backed/JJ
market/NN
revived/VBD
after/IN
a/DT
brief/JJ
hiatus/NN
as/IN
two/CD
new/JJ
Remics/NNS
totaling/VBG
$/$
850/CD
million/CD
were/VBD
offered/VBN
and/CC
talk/NN
circulated/VBD
about/IN
two/CD
more/JJR
issues/NNS
that/WDT
could/MD
be/VB
priced/VBN
today/NN
./.
The/DT
revival/NN
of/IN
the/DT
real/JJ
estate/NN
mortgage/NN
investment/NN
conduit/NN
market/NN
reflected/VBD
the/DT
relative/JJ
calm/NN
in/IN
the/DT
mortgage/NN
market/NN
after/IN
two/CD
days/NNS
of/IN
volatile/JJ
trading/NN
./.
Dealers/NNS
noted/VBD
that/IN
it/PRP
's/VBZ
difficult/JJ
to/TO
structure/VB
new/JJ
Remics/NNS
when/WRB
prices/NNS
are/VBP
moving/VBG
widely/RB
./.
The/DT
two/CD
Remics/NNS
priced/VBN
were/VBD
a/DT
$/$
500/CD
million/CD
Federal/NNP
Home/NNP
Loan/NNP
Mortgage/NNP
Corp./NNP
issue/NN
underwritten/VBN
by/IN
Salomon/NNP
Brothers/NNPS
Inc./NNP
and/CC
a/DT
$/$
350/CD
million/CD
Federal/NNP
National/NNP
Mortgage/NNP
Association/NNP
deal/NN
underwritten/VBN
by/IN
Greenwich/NNP
Capital/NNP
Markets/NNPS
./.
The/DT
Remic/NNP
issuance/NN
supported/VBD
prices/NNS
of/IN
Freddie/NNP
Mac/NNP
and/CC
Fannie/NNP
Mae/NNP
securities/NNS
,/,
which/WDT
held/VBD
up/IN
better/RB
than/IN
Government/NNP
National/NNP
Mortgage/NNP
Association/NNP
securities/NNS
during/IN
an/DT
afternoon/NN
sell-off/NN
./.
Ginnie/NNP
Mae/NNP
9/CD
%/NN
securities/NNS
for/IN
November/NNP
delivery/NN
ended/VBD
at/IN
97/CD
29\/32/CD
,/,
down/IN
7\/32/CD
;/:
9/CD
1\/2/CD
%/NN
securities/NNS
at/IN
99/CD
31\/32/CD
,/,
down/IN
6\/32/CD
;/:
and/CC
10/CD
%/JJ
securities/NNS
at/IN
101/CD
29\/32/CD
,/,
down/IN
5\/32/CD
./.
Freddie/NNP
Mac/NNP
9/CD
%/NN
securities/NNS
were/VBD
at/IN
97/CD
5\/32/CD
,/,
down/IN
3\/32/CD
./.
The/DT
Ginnie/NNP
Mae/NNP
9/CD
%/NN
issue/NN
was/VBD
yielding/VBG
9.43/CD
%/NN
to/TO
a/DT
12-year/JJ
average/NN
life/NN
assumption/NN
,/,
as/IN
the/DT
spread/NN
above/IN
the/DT
Treasury/NN
10-year/JJ
note/NN
held/VBN
at/IN
1.42/CD
percentage/NN
points/NNS
./.
Municipals/NNS
Confusion/NN
over/IN
the/DT
near-term/JJ
trend/NN
for/IN
rates/NNS
dominated/VBD
the/DT
municipal/JJ
arena/NN
,/,
as/IN
gyrations/NNS
in/IN
the/DT
stock/NN
market/NN
continued/VBD
to/TO
buffet/VB
bonds/NNS
./.
Long/JJ
tax-exempt/JJ
dollar/NN
bonds/NNS
were/VBD
mostly/RB
flat/JJ
to/TO
3\/8/CD
point/NN
lower/JJR
after/IN
a/DT
whipsaw/NN
session/NN
of/IN
moving/VBG
inversely/RB
to/TO
stocks/NNS
in/IN
modest/JJ
dealer-led/JJ
trading/NN
./.
Prices/NNS
of/IN
pre-refunded/JJ
municipal/JJ
bonds/NNS
were/VBD
capped/VBN
by/IN
news/NN
that/IN
Chemical/NNP
Securities/NNPS
Inc./NNP
,/,
as/IN
agent/NN
for/IN
a/DT
customer/NN
,/,
will/MD
accept/VB
bids/NNS
today/NN
for/IN
two/CD
large/JJ
lists/NNS
of/IN
bonds/NNS
that/WDT
include/VBP
many/JJ
such/JJ
issues/NNS
./.
The/DT
lists/NNS
total/VBP
$/$
654.5/CD
million/CD
./.
Pre-refunded/JJ
bonds/NNS
are/VBP
called/VBN
at/IN
their/PRP$
earliest/JJS
call/NN
date/NN
with/IN
the/DT
escrowed/VBN
proceeds/NNS
of/IN
another/DT
bond/NN
issue/NN
./.
Meanwhile/RB
,/,
several/JJ
new/JJ
issues/NNS
were/VBD
priced/VBN
./.
Underwriters/NNS
led/VBN
by/IN
PaineWebber/NNP
Inc./NNP
set/VBD
preliminary/JJ
pricing/NN
for/IN
$/$
144.4/CD
million/CD
of/IN
California/NNP
Health/NNP
Facilities/NNPS
Financing/NNP
Authority/NNP
revenue/NN
bonds/NNS
for/IN
Kaiser/NNP
Permanente/NNP
./.
Tentative/JJ
reoffering/NN
yields/NNS
were/VBD
set/VBN
from/IN
6.25/CD
%/NN
in/IN
1993/CD
to/TO
7.227/CD
%/NN
in/IN
2018/CD
./.
As/IN
part/NN
of/IN
its/PRP$
College/NNP
Savings/NNP
Plan/NNP
,/,
Connecticut/NNP
offered/VBD
$/$
100.4/CD
million/CD
of/IN
general/JJ
obligation/NN
capital/NN
appreciation/NN
bonds/NNS
priced/VBN
to/TO
yield/VB
to/TO
maturity/NN
from/IN
6.25/CD
%/NN
in/IN
1994/CD
to/TO
6.90/CD
%/NN
in/IN
2006/CD
,/,
2007/CD
and/CC
2009/CD
./.
A/DT
Chemical/NNP
Securities/NNPS
group/NN
won/VBD
a/DT
$/$
100/CD
million/CD
Oregon/NNP
general/JJ
obligation/NN
veterans/NNS
'/POS
tax/NN
note/NN
issue/NN
due/JJ
Nov./NNP
1/CD
,/,
1990/CD
./.
The/DT
6/CD
3\/4/CD
%/NN
notes/NNS
yield/VBP
6.25/CD
%/NN
./.
Foreign/NNP
Bonds/NNPS
West/NNP
German/NNP
government/NN
bond/NN
prices/NNS
took/VBD
a/DT
wild/JJ
roller-coaster/NN
ride/NN
,/,
pulled/VBD
down/IN
by/IN
Monday/NNP
's/POS
U.S./NNP
stock/NN
market/NN
gains/NNS
then/RB
up/IN
by/IN
a/DT
wider-than-expected/JJ
U.S./NNP
trade/NN
deficit/NN
and/CC
falling/VBG
U.S./NNP
stock/NN
prices/NNS
./.
West/NNP
Germany/NNP
's/POS
7/CD
%/NN
bond/NN
due/JJ
October/NNP
1999/CD
was/VBD
at/IN
99.95/CD
late/JJ
yesterday/NN
,/,
off/IN
0.10/CD
point/NN
from/IN
Monday/NNP
,/,
to/TO
yield/VB
7.01/CD
%/NN
./.
The/DT
6/CD
3\/4/CD
%/NN
notes/NNS
due/JJ
April/NNP
1994/CD
were/VBD
up/IN
0.10/CD
point/NN
to/TO
97.85/CD
to/TO
yield/VB
7.31/CD
%/NN
./.
British/JJ
government/NN
bonds/NNS
surged/VBD
on/IN
renewed/VBN
volatility/NN
in/IN
the/DT
stock/NN
market/NN
./.
The/DT
Treasury/NNP
11/CD
3\/4/CD
%/NN
bond/NN
due/JJ
2003\/2007/CD
rose/VBD
23\/32/CD
to/TO
112/CD
10\/32/CD
to/TO
yield/VB
10.03/CD
%/NN
./.
But/CC
Japanese/JJ
bonds/NNS
ended/VBD
weaker/JJR
./.
The/DT
benchmark/NN
No./NN
111/CD
4.6/CD
%/NN
bond/NN
due/JJ
1998/CD
ended/VBD
on/IN
brokers/NNS
'/POS
screens/NNS
at/IN
a/DT
price/NN
of/IN
96/CD
,/,
off/IN
0.15/CD
point/NN
to/TO
yield/VB
5.27/CD
%/NN
./.
A/DT
House-Senate/NNP
conference/NN
approved/VBD
an/DT
estimated/VBN
$/$
67/CD
billion/CD
fiscal/JJ
1990/CD
spending/NN
bill/NN
that/WDT
provides/VBZ
a/DT
28/CD
%/NN
increase/NN
for/IN
space/NN
research/NN
and/CC
development/NN
and/CC
incorporates/VBZ
far-reaching/JJ
provisions/NNS
affecting/VBG
the/DT
federal/JJ
mortgage/NN
market/NN
./.
The/DT
current/JJ
ceiling/NN
on/IN
home/NN
loans/NNS
insured/VBN
by/IN
the/DT
Federal/NNP
Housing/NNP
Administration/NNP
would/MD
be/VB
increased/VBN
to/TO
$/$
124,875/CD
./.
Separately/RB
,/,
the/DT
bill/NN
gives/VBZ
authority/NN
to/TO
the/DT
Bush/NNP
administration/NN
to/TO
facilitate/VB
the/DT
refinancing/NN
of/IN
federally/RB
subsidized/VBN
loans/NNS
for/IN
low-income/NN
and/CC
moderate-income/NN
homeowners/NNS
./.
The/DT
second/JJ
provision/NN
,/,
affecting/VBG
so-called/JJ
235/CD
mortgages/NNS
,/,
has/VBZ
met/VBN
strong/JJ
opposition/NN
from/IN
investment/NN
bankers/NNS
represented/VBN
by/IN
the/DT
Public/NNP
Securities/NNPS
Association/NNP
./.
And/CC
a/DT
squad/NN
of/IN
influential/JJ
former/JJ
Senate/NNP
aides/NNS
employed/VBN
by/IN
the/DT
Wall/NNP
Street/NNP
firm/NN
Salomon/NNP
Brothers/NNPS
came/VBD
to/TO
the/DT
Capitol/NN
in/IN
a/DT
vain/JJ
attempt/NN
to/TO
strip/VB
the/DT
provision/NN
./.
By/IN
an/DT
11-2/CD
margin/NN
,/,
Senate/NNP
negotiators/NNS
voted/VBD
to/TO
preserve/VB
the/DT
235/CD
mortgage/NN
refinancing/NN
plan/NN
,/,
and/CC
despite/IN
powerful/JJ
allies/NNS
,/,
the/DT
opposition/NN
found/VBD
itself/PRP
undercut/JJ
by/IN
an/DT
unusual/JJ
alliance/NN
of/IN
liberals/NNS
and/CC
conservatives/NNS
./.
The/DT
government/NN
currently/RB
is/VBZ
subsidizing/VBG
an/DT
estimated/VBN
23,000/CD
loans/NNS
above/IN
11/CD
%/NN
under/IN
the/DT
235/CD
program/NN
,/,
and/CC
however/RB
disruptive/JJ
to/TO
private/JJ
investors/NNS
,/,
the/DT
refinancing/VBG
is/VBZ
expected/VBN
to/TO
yield/VB
at/IN
least/JJS
$/$
15/CD
million/CD
in/IN
savings/NNS
in/IN
fiscal/JJ
1990/CD
./.
This/DT
sum/NN
has/VBZ
been/VBN
guarded/VBN
jealously/RB
by/IN
appropriators/NNS
anxious/JJ
to/TO
offset/VB
spending/VBG
elsewhere/RB
,/,
and/CC
conservative/JJ
Sen./NNP
Phil/NNP
Gramm/NNP
cast/VBD
the/DT
fight/NN
as/IN
a/DT
populist/JJ
stand/NN
against/IN
monied/JJ
interests/NNS
./.
``/``
We/PRP
are/VBP
stewards/NNS
here/RB
,/,
not/RB
of/IN
the/DT
mortgage/NN
companies/NNS
,/,
but/CC
the/DT
taxpayers/NNS
,/,
''/''
said/VBD
the/DT
Texas/NNP
Republican/NNP
./.
The/DT
action/NN
came/VBD
as/IN
the/DT
administration/NN
won/VBD
final/JJ
congressional/JJ
approval/NN
of/IN
$/$
9/CD
million/CD
in/IN
assistance/NN
for/IN
elections/NNS
scheduled/VBN
in/IN
Nicaragua/NNP
in/IN
February/NNP
./.
The/DT
bulk/NN
of/IN
the/DT
money/NN
would/MD
be/VB
funneled/VBN
through/IN
the/DT
National/NNP
Endowment/NNP
for/IN
Democracy/NNP
,/,
but/CC
the/DT
legislation/NN
is/VBZ
so/RB
vaguely/RB
written/VBN
that/IN
it/PRP
has/VBZ
been/VBN
dogged/VBN
by/IN
questions/NNS
regarding/VBG
the/DT
money/NN
's/POS
true/JJ
purpose/NN
and/CC
its/PRP$
ultimate/JJ
destination/NN
./.
The/DT
Senate/NNP
had/VBD
refused/VBN
late/JJ
Friday/NNP
to/TO
invoke/VB
cloture/NN
and/CC
limit/VB
debate/NN
,/,
but/CC
behind/IN
the/DT
bipartisan/JJ
leadership/NN
,/,
a/DT
solid/JJ
majority/NN
took/VBD
shape/NN
yesterday/NN
and/CC
brushed/VBD
aside/RB
amendments/NNS
seeking/VBG
to/TO
cut/VB
the/DT
total/JJ
package/NN
or/CC
steer/VB
it/PRP
away/RB
from/IN
direct/JJ
aid/NN
to/TO
political/JJ
parties/NNS
./.
Final/JJ
approval/NN
--/:
on/IN
a/DT
64-35/CD
roll/NN
call/NN
--/:
was/VBD
never/RB
in/IN
doubt/NN
,/,
but/CC
the/DT
opposition/NN
drew/VBD
an/DT
unusual/JJ
mix/NN
of/IN
senators/NNS
,/,
including/VBG
Republicans/NNPS
Jesse/NNP
Helms/NNP
and/CC
Warren/NNP
Rudman/NNP
and/CC
Democrats/NNPS
Bill/NNP
Bradley/NNP
and/CC
John/NNP
Glenn/NNP
./.
The/DT
money/NN
will/MD
be/VB
applied/VBN
for/IN
voter/NN
registration/NN
and/CC
election/NN
monitoring/NN
,/,
but/CC
more/RBR
than/IN
half/DT
is/VBZ
likely/JJ
to/TO
go/VB
to/TO
the/DT
Union/NNP
Nacional/NNP
Opositora/NNP
party/NN
./.
Critics/NNS
warned/VBD
such/JJ
cash/NN
contributions/NNS
may/MD
only/RB
undercut/VB
the/DT
opposition/NN
party/NN
's/POS
standing/NN
,/,
and/CC
one/CD
irony/NN
is/VBZ
that/DT
under/IN
Nicaraguan/JJ
law/NN
a/DT
major/JJ
portion/NN
of/IN
the/DT
opposition/NN
party/NN
's/POS
funds/NNS
must/MD
be/VB
shared/VBN
with/IN
the/DT
government/NN
's/POS
Supreme/NNP
Electoral/NNP
Council/NNP
./.
Within/IN
the/DT
appropriations/NNS
conference/NN
yesterday/NN
,/,
the/DT
$/$
67/CD
billion/CD
measure/NN
is/VBZ
the/DT
second/RB
largest/JJS
of/IN
the/DT
annual/JJ
domestic/JJ
spending/NN
bills/NNS
and/CC
covers/VBZ
a/DT
disparate/JJ
collection/NN
of/IN
accounts/NNS
for/IN
science/NN
,/,
housing/NN
,/,
veterans/NNS
and/CC
the/DT
environment/NN
./.
The/DT
decision/NN
to/TO
raise/VB
the/DT
ceiling/NN
on/IN
FHA/NNP
home/NN
loans/NNS
still/RB
faces/VBZ
strong/JJ
opposition/NN
in/IN
the/DT
House/NN
./.
But/CC
it/PRP
is/VBZ
driven/VBN
by/IN
the/DT
same/JJ
fiscal/JJ
pressures/NNS
that/WDT
have/VBP
forced/VBN
lawmakers/NNS
to/TO
resort/VB
to/TO
various/JJ
bookkeeping/NN
devices/NNS
to/TO
juggle/VB
as/RB
much/RB
as/IN
$/$
1/CD
billion/CD
in/IN
spending/NN
that/WDT
would/MD
otherwise/RB
put/VB
the/DT
bill/NN
over/IN
budget/NN
./.
These/DT
costs/NNS
will/MD
complicate/VB
the/DT
budget/NN
picture/NN
in/IN
fiscal/JJ
1991/CD
,/,
and/CC
the/DT
measure/NN
further/RB
commits/VBZ
Congress/NNP
to/TO
a/DT
set/NN
of/IN
costly/JJ
projects/NNS
,/,
including/VBG
the/DT
first/JJ
construction/NN
funds/NNS
for/IN
the/DT
space/NN
station/NN
./.
The/DT
station/NN
is/VBZ
promised/VBN
$/$
1.8/CD
billion/CD
within/IN
the/DT
$/$
5.36/CD
billion/CD
provided/VBN
for/IN
research/NN
and/CC
development/NN
in/IN
the/DT
National/NNP
Aeronautics/NNP
and/CC
Space/NNP
Administration/NNP
,/,
and/CC
the/DT
nation/NN
's/POS
high-speed/JJ
aerospace/NN
plane/NN
--/:
cut/VBN
by/IN
the/DT
Senate/NNP
--/:
could/MD
receive/VB
as/RB
much/RB
as/IN
$/$
60/CD
million/CD
in/IN
new/JJ
funds/NNS
or/CC
transfers/NNS
./.
Similarly/RB
,/,
the/DT
House/NNP
agreed/VBD
to/TO
add/VB
back/RB
$/$
62/CD
million/CD
to/TO
continue/VB
work/NN
on/IN
the/DT
advanced/VBN
communications/NNS
technology/NN
satellite/NN
,/,
being/VBG
developed/VBN
by/IN
General/NNP
Electric/NNP
Co/NNP
./.
And/CC
while/IN
setting/VBG
a/DT
statutory/JJ
limit/NN
of/IN
$/$
1.6/CD
billion/CD
on/IN
the/DT
automated/VBN
space/NN
probe/NN
,/,
the/DT
conference/NN
appropriated/VBD
$/$
30/CD
million/CD
for/IN
the/DT
start-up/NN
of/IN
the/DT
CRAF-Cassini/NNP
mission/NN
,/,
a/DT
successor/NN
to/TO
the/DT
Voyager/NNP
space/NN
probe/NN
./.
Among/IN
major/JJ
domestic/JJ
agencies/NNS
,/,
the/DT
Environmental/NNP
Protection/NNP
Agency/NNP
stands/VBZ
to/TO
receive/VB
increases/NNS
significantly/RB
beyond/IN
those/DT
sought/VBN
by/IN
the/DT
administration/NN
,/,
with/IN
pollution/NN
abatement/NN
and/CC
control/NN
accounts/NNS
growing/VBG
by/IN
14/CD
%/NN
to/TO
about/IN
$/$
829.9/CD
million/CD
./.
An/DT
estimated/VBN
$/$
1.57/CD
billion/CD
is/VBZ
separately/RB
allocated/VBN
for/IN
the/DT
National/NNP
Science/NNP
Foundation/NNP
,/,
and/CC
within/IN
the/DT
Housing/NNP
and/CC
Urban/NNP
Development/NNP
Department/NNP
,/,
more/JJR
than/IN
$/$
9.2/CD
billion/CD
is/VBZ
provided/VBN
for/IN
federally/RB
assisted/VBN
housing/NN
,/,
including/VBG
an/DT
expanded/VBN
effort/NN
to/TO
modernize/VB
public/JJ
housing/NN
units/NNS
that/WDT
serve/VBP
the/DT
poorest/JJS
families/NNS
./.
To/TO
an/DT
unusual/JJ
degree/NN
,/,
the/DT
massive/JJ
bill/NN
has/VBZ
become/VBN
a/DT
vehicle/NN
for/IN
lawmakers/NNS
to/TO
earmark/VB
funds/NNS
for/IN
projects/NNS
in/IN
home/NN
states/NNS
./.
While/IN
the/DT
practice/NN
was/VBD
discouraged/VBN
in/IN
the/DT
past/NN
,/,
the/DT
conference/NN
agreement/NN
is/VBZ
laced/VBN
with/IN
veterans/NNS
'/POS
hospitals/NNS
,/,
environmental/JJ
projects/NNS
and/CC
urban/JJ
grants/NNS
designated/VBN
for/IN
specific/JJ
communities/NNS
./.
The/DT
most/RBS
striking/JJ
example/NN
yesterday/NN
may/MD
have/VB
been/VBN
in/IN
community/NN
development/NN
funds/NNS
,/,
where/WRB
the/DT
two/CD
houses/NNS
had/VBD
separately/RB
approved/VBN
a/DT
total/NN
of/IN
27/CD
projects/NNS
valued/VBN
at/IN
$/$
20/CD
million/CD
,/,
and/CC
the/DT
conference/NN
added/VBN
15/CD
more/RBR
valued/VBN
at/IN
$/$
8/CD
million/CD
to/TO
ostensibly/RB
preserve/VB
``/``
balance/NN
''/''
between/IN
the/DT
House/NNP
and/CC
Senate/NNP
./.
Yesterday/NN
's/POS
conference/NN
agreement/NN
is/VBZ
the/DT
second/JJ
major/JJ
bill/NN
to/TO
emerge/VB
from/IN
negotiations/NNS
this/DT
week/NN
,/,
as/IN
appropriators/NNS
approved/VBD
a/DT
fiscal/JJ
1990/CD
transportation/NN
bill/NN
late/JJ
Monday/NNP
that/WDT
includes/VBZ
a/DT
sweeping/VBG
ban/NN
on/IN
smoking/VBG
on/IN
most/JJS
domestic/JJ
airline/NN
flights/NNS
./.
An/DT
exemption/NN
will/MD
remain/VB
for/IN
flights/NNS
longer/JJR
than/IN
six/CD
hours/NNS
to/TO
Hawaii/NNP
and/CC
Alaska/NNP
,/,
but/CC
estimates/NNS
by/IN
the/DT
tobacco/NN
industry/NN
yesterday/NN
indicate/VBP
all/DT
but/CC
about/IN
30/CD
flights/NNS
would/MD
be/VB
covered/VBN
./.
Separately/RB
,/,
a/DT
third/JJ
conference/NN
report/NN
covering/VBG
an/DT
$/$
18.4/CD
billion/CD
Treasury/NNP
and/CC
Postal/NNP
Service/NNP
bill/NN
was/VBD
sent/VBN
to/TO
the/DT
Senate/NNP
after/IN
passing/VBG
the/DT
House/NNP
on/IN
a/DT
383-30/CD
roll/NN
call/NN
yesterday/NN
./.
And/CC
after/IN
weeks/NNS
of/IN
delay/NN
,/,
the/DT
appropriations/NNS
process/NN
is/VBZ
beginning/VBG
to/TO
take/VB
some/DT
final/JJ
shape/NN
./.
Defense/NN
and/CC
foreign/JJ
aid/NN
are/VBP
the/DT
two/CD
most/RBS
critical/JJ
areas/NNS
remaining/VBG
from/IN
the/DT
administration/NN
's/POS
standpoint/NN
./.
And/CC
among/IN
domestic/JJ
programs/NNS
,/,
the/DT
most/RBS
serious/JJ
threat/NN
is/VBZ
White/NNP
House/NNP
opposition/NN
to/TO
abortion/NN
riders/NNS
attached/VBD
to/TO
separate/JJ
bills/NNS
funding/VBG
the/DT
District/NNP
of/IN
Columbia/NNP
and/CC
Department/NNP
of/IN
Health/NNP
and/CC
Human/NNP
Services/NNPS
./.
The/DT
same/JJ
issue/NN
threatens/VBZ
to/TO
spill/VB
over/IN
to/TO
the/DT
foreign/JJ
aid/NN
debate/NN
,/,
and/CC
Mr./NNP
Bush/NNP
also/RB
is/VBZ
threatening/VBG
to/TO
veto/VB
any/DT
agreement/NN
that/WDT
preserves/VBZ
Senate-passed/JJ
provisions/NNS
renewing/VBG
U.S./NNP
support/NN
for/IN
the/DT
United/NNP
Nations/NNPS
Fund/NNP
for/IN
Population/NNP
Activities/NNPS
./.
In/IN
a/DT
sharply/RB
written/VBN
letter/NN
,/,
Rep./NNP
David/NNP
Obey/NNP
,/,
chairman/NN
of/IN
the/DT
House/NN
appropriations/NNS
subcommittee/NN
for/IN
foreign/JJ
operations/NNS
,/,
warned/VBD
Mr./NNP
Bush/NNP
that/IN
the/DT
result/NN
of/IN
his/PRP$
``/``
ultimatum/NN
''/''
could/MD
weaken/VB
efforts/NNS
to/TO
accommodate/VB
the/DT
administration/NN
elsewhere/RB
./.
``/``
As/IN
a/DT
result/NN
of/IN
your/PRP$
ultimatum/NN
,/,
''/''
writes/VBZ
the/DT
Wisconsin/NNP
Democrat/NNP
,/,
``/``
I/PRP
guess/VBP
there/EX
is/VBZ
no/DT
longer/RB
any/DT
point/NN
in/IN
taking/VBG
administration/NN
views/NNS
into/IN
account/NN
on/IN
other/JJ
items/NNS
in/IN
conference/NN
,/,
inasmuch/RB
regardless/RB
of/IN
their/PRP$
resolution/NN
you/PRP
apparently/RB
intend/VBP
to/TO
veto/VB
this/DT
bill/NN
./.
''/''
Markets/NNS
usually/RB
get/VBP
noticed/VBN
because/IN
they/PRP
soar/VBP
or/CC
plunge/VBP
./.
Gold/NN
,/,
which/WDT
has/VBZ
n't/RB
risen/VBN
or/CC
fallen/VBN
significantly/RB
in/IN
quite/RB
some/DT
time/NN
,/,
yesterday/NN
achieved/VBD
what/WP
may/MD
be/VB
a/DT
new/JJ
level/NN
of/IN
impassiveness/NN
:/:
The/DT
most/RBS
actively/RB
traded/VBN
futures/NNS
contracts/NNS
closed/VBD
unchanged/JJ
despite/IN
nervous/JJ
fluctuations/NNS
in/IN
both/PDT
the/DT
dollar/NN
and/CC
the/DT
stock/NN
market/NN
./.
The/DT
settlement/NN
prices/NNS
of/IN
the/DT
December/NNP
,/,
February/NNP
and/CC
April/NNP
gold/NN
contracts/NNS
were/VBD
even/RB
with/IN
Monday/NNP
's/POS
final/JJ
prices/NNS
./.
The/DT
December/NNP
1989/CD
contract/NN
,/,
which/WDT
has/VBZ
the/DT
greatest/JJS
trading/NN
volume/NN
,/,
ended/VBD
at/IN
$/$
371.20/CD
an/DT
ounce/NN
./.
The/DT
other/JJ
months/NNS
posted/VBD
advances/NNS
of/IN
10/CD
cents/NNS
to/TO
20/CD
cents/NNS
an/DT
ounce/NN
./.
According/VBG
to/TO
one/CD
analyst/NN
,/,
Bernard/NNP
Savaiko/NNP
of/IN
PaineWebber/NNP
,/,
New/NNP
York/NNP
,/,
the/DT
stock/NN
market/NN
's/POS
ability/NN
on/IN
Monday/NNP
to/TO
rally/VB
from/IN
last/JJ
Friday/NNP
's/POS
decline/NN
--/:
which/WDT
seemed/VBD
to/TO
indicate/VB
that/IN
the/DT
economy/NN
was/VBD
n't/RB
going/VBG
to/TO
fall/VB
either/DT
--/:
took/VBD
the/DT
starch/NN
out/IN
of/IN
precious/JJ
metals/NNS
prices/NNS
,/,
and/CC
out/IN
of/IN
gold/NN
's/POS
,/,
in/IN
particular/NN
./.
Yesterday/NN
,/,
gold/NN
traded/VBD
within/IN
a/DT
narrow/JJ
range/NN
./.
Gold/NN
tried/VBD
to/TO
rally/VB
on/IN
Monday/NNP
but/CC
ran/VBD
into/IN
the/DT
same/JJ
situation/NN
that/WDT
has/VBZ
subdued/VBN
gold/JJ
prices/NNS
for/IN
more/JJR
than/IN
a/DT
year/NN
:/:
selling/VBG
by/IN
gold/JJ
producers/NNS
,/,
who/WP
want/VBP
to/TO
fix/VB
the/DT
highest/JJS
possible/JJ
price/NN
for/IN
their/PRP$
gold/NN
./.
``/``
December/NNP
delivery/NN
gold/NN
is/VBZ
trading/VBG
in/IN
a/DT
range/NN
of/IN
$/$
365/CD
to/TO
$/$
375/CD
an/DT
ounce/NN
difficulty/NN
breaking/VBG
out/IN
above/IN
that/DT
,/,
''/''
Mr./NNP
Savaiko/NNP
said/VBD
./.
``/``
Producers/NNS
at/IN
the/DT
moment/NN
regard/NN
that/DT
area/NN
a/DT
good/JJ
one/CD
in/IN
which/WDT
to/TO
sell/VB
gold/NN
./.
''/''
Also/RB
,/,
Mr./NNP
Savaiko/NNP
noted/VBD
,/,
stock/NN
market/NN
investors/NNS
seeking/VBG
greater/JJR
safety/NN
are/VBP
veering/VBG
toward/IN
buying/VBG
bonds/NNS
rather/RB
than/IN
precious/JJ
metals/NNS
because/IN
``/``
we/PRP
are/VBP
tending/VBG
more/RBR
toward/IN
a/DT
disinflationary/JJ
economy/NN
that/WDT
does/VBZ
n't/RB
make/VB
gold/NN
and/CC
precious/JJ
metals/NNS
attractive/JJ
./.
''/''
Jeffrey/NNP
Nichols/NNP
,/,
president/NN
of/IN
APMS/NNP
Canada/NNP
,/,
Toronto/NNP
precious/JJ
metals/NNS
advisers/NNS
,/,
said/VBD
there/EX
is/VBZ
little/JJ
to/TO
motivate/VB
gold/JJ
traders/NNS
to/TO
buy/VB
the/DT
metal/NN
./.
``/``
Investors/NNPS
in/IN
the/DT
U.S./NNP
and/CC
Europe/NNP
are/VBP
comfortable/JJ
with/IN
the/DT
actions/NNS
of/IN
the/DT
Federal/NNP
Reserve/NNP
its/PRP$
willingness/NN
to/TO
supply/VB
liquidity/NN
to/TO
financial/JJ
system/NN
,/,
which/WDT
helped/VBD
the/DT
stock/NN
market/NN
rebound/NN
on/IN
Monday/NNP
,/,
''/''
he/PRP
said/VBD
./.
There/EX
is/VBZ
n't/RB
any/DT
rush/NN
on/IN
the/DT
part/NN
of/IN
investors/NNS
in/IN
the/DT
West/NN
to/TO
buy/VB
gold/NN
,/,
he/PRP
said/VBD
./.
``/``
They/PRP
still/RB
bear/VBP
the/DT
memory/NN
of/IN
October/NNP
1987/CD
,/,
when/WRB
they/PRP
bought/VBD
gold/NN
after/IN
the/DT
stock/NN
market/NN
crashed/VBD
and/CC
ended/VBD
up/IN
losing/VBG
money/NN
because/IN
gold/JJ
prices/NNS
subsequently/RB
fell/VBD
,/,
''/''
Mr./NNP
Nichols/NNP
said/VBD
./.
``/``
It/PRP
's/VBZ
an/DT
experience/NN
they/PRP
do/VBP
n't/RB
want/VB
to/TO
repeat/VB
./.
''/''
At/IN
the/DT
moment/NN
gold/NN
traders/NNS
are/VBP
n't/RB
concerned/VBN
about/IN
inflation/NN
,/,
he/PRP
said/VBD
,/,
and/CC
as/IN
for/IN
the/DT
dollar/NN
,/,
``/``
gold/NN
's/POS
association/NN
with/IN
the/DT
currency/NN
has/VBZ
been/VBN
diminishing/VBG
recently/RB
so/IN
drops/NNS
in/IN
the/DT
currency/NN
are/VBP
n't/RB
having/VBG
much/JJ
impact/NN
on/IN
gold/NN
./.
''/''
Dinsa/NNP
Mehta/NNP
,/,
chief/NN
bullion/NN
trader/NN
for/IN
Chase/NNP
Manhattan/NNP
Bank/NNP
,/,
said/VBD
:/:
``/``
There/EX
is/VBZ
little/JJ
incentive/NN
on/IN
the/DT
part/NN
of/IN
traders/NNS
to/TO
sell/VB
gold/NN
because/IN
the/DT
stock/NN
market/NN
may/MD
go/VB
lower/JJR
and/CC
gold/NN
may/MD
retain/VB
some/DT
of/IN
its/PRP$
`/``
flight/NN
to/TO
safety/NN
'/''
quality/NN
./.
There/EX
is/VBZ
little/RB
incentive/JJ
to/TO
buy/VB
gold/NN
because/IN
if/IN
the/DT
stock/NN
market/NN
goes/VBZ
higher/JJR
,/,
it/PRP
may/MD
be/VB
just/RB
a/DT
false/JJ
alarm/NN
./.
This/DT
is/VBZ
keeping/VBG
the/DT
gold/JJ
traders/NNS
handcuffed/VBN
./.
''/''
The/DT
most/RBS
remarkable/JJ
feature/NN
about/IN
yesterday/NN
's/POS
action/NN
was/VBD
that/IN
the/DT
price/NN
of/IN
roughly/RB
$/$
370/CD
an/DT
ounce/NN
was/VBD
regarded/VBN
as/IN
attractive/JJ
enough/RB
by/IN
gold/JJ
producers/NNS
around/IN
the/DT
world/NN
to/TO
aggressively/RB
sell/VB
gold/NN
,/,
Mr./NNP
Mehta/NNP
said/VBD
./.
``/``
I/PRP
do/VBP
n't/RB
know/VB
what/WP
it/PRP
means/VBZ
over/IN
the/DT
long/JJ
run/NN
,/,
but/CC
for/IN
the/DT
short/JJ
term/NN
,/,
it/PRP
appears/VBZ
that/IN
gold/JJ
producers/NNS
are/VBP
grateful/JJ
for/IN
the/DT
$/$
10/CD
or/CC
so/RB
that/DT
gold/NN
has/VBZ
risen/VBN
over/IN
the/DT
past/JJ
week/NN
or/CC
so/RB
,/,
''/''
he/PRP
said/VBD
./.
Previously/RB
,/,
he/PRP
noted/VBD
,/,
gold/JJ
producers/NNS
tended/VBD
to/TO
back/VB
off/IN
from/IN
a/DT
rising/VBG
gold/NN
market/NN
,/,
letting/VBG
prices/NNS
rise/VB
as/IN
much/RB
as/RB
possible/JJ
before/IN
selling/VBG
./.
Mr./NNP
Mehta/NNP
observed/VBD
that/IN
the/DT
U.S./NNP
merchandise/NN
trade/NN
deficit/NN
,/,
which/WDT
rose/VBD
sharply/RB
in/IN
August/NNP
,/,
according/VBG
to/TO
yesterday/NN
's/POS
report/NN
,/,
has/VBZ
been/VBN
having/VBG
less/JJR
and/CC
less/JJR
impact/NN
on/IN
the/DT
gold/NN
market/NN
./.
``/``
The/DT
dollar/NN
has/VBZ
n't/RB
reacted/VBD
much/RB
to/TO
it/PRP
,/,
so/RB
gold/JJ
has/VBZ
n't/RB
either/RB
,/,
''/''
he/PRP
said/VBD
./.
In/IN
other/JJ
commodity/NN
markets/NNS
yesterday/NN
:/:
ENERGY/NNP
:/:
Crude/JJ
oil/NN
prices/NNS
rose/VBD
slightly/RB
in/IN
lackluster/JJ
activity/NN
as/IN
traders/NNS
in/IN
the/DT
pits/NNS
tried/VBD
to/TO
assess/VB
action/NN
in/IN
the/DT
stock/NN
market/NN
./.
Since/IN
stock/NN
market/NN
indexes/NNS
plummeted/VBD
last/JJ
Friday/NNP
,/,
participants/NNS
in/IN
all/DT
markets/NNS
have/VBP
been/VBN
wary/JJ
./.
When/WRB
traders/NNS
become/VBP
confident/JJ
that/IN
the/DT
stock/NN
market/NN
has/VBZ
stabilized/VBN
,/,
oil/NN
prices/NNS
are/VBP
expected/VBN
to/TO
rise/VB
as/IN
supply/NN
and/CC
demand/NN
fundamentals/NNS
once/RB
again/RB
become/VBP
the/DT
major/JJ
consideration/NN
./.
Crude/JJ
oil/NN
for/IN
November/NNP
delivery/NN
edged/VBD
up/IN
by/IN
16/CD
cents/NNS
a/DT
barrel/NN
to/TO
$/$
20.75/CD
a/DT
barrel/NN
./.
Heating/VBG
oil/NN
prices/NNS
also/RB
rose/VBD
./.
November/NNP
gasoline/NN
slipped/VBD
slightly/RB
./.
SUGAR/NNP
:/:
Futures/NNS
prices/NNS
rose/VBD
on/IN
a/DT
report/NN
that/IN
Cuba/NNP
may/MD
seek/VB
to/TO
postpone/VB
some/DT
sugar/NN
shipments/NNS
./.
The/DT
March/NNP
contract/NN
advanced/VBD
0.14/CD
cent/NN
a/DT
pound/NN
to/TO
14.11/CD
cents/NNS
./.
According/VBG
to/TO
an/DT
analyst/NN
,/,
Cuba/NNP
ca/MD
n't/RB
meet/VB
all/PDT
its/PRP$
shipment/NN
commitments/NNS
and/CC
has/VBZ
asked/VBN
Japan/NNP
to/TO
accept/VB
a/DT
delay/NN
of/IN
shipments/NNS
scheduled/VBN
for/IN
later/RB
this/DT
year/NN
,/,
into/IN
early/JJ
next/JJ
year/NN
./.
``/``
Japan/NNP
is/VBZ
perceived/VBN
as/IN
a/DT
wealthy/JJ
nation/NN
that/WDT
can/MD
turn/VB
elsewhere/RB
in/IN
the/DT
world/NN
market/NN
and/CC
buy/VB
the/DT
sugar/NN
,/,
''/''
the/DT
analyst/NN
said/VBD
./.
It/PRP
was/VBD
the/DT
possibility/NN
of/IN
this/DT
demand/NN
that/WDT
helped/VBD
firm/VB
prices/NNS
,/,
the/DT
analyst/NN
said/VBD
./.
Another/DT
analyst/NN
noted/VBD
that/IN
Cuba/NNP
has/VBZ
been/VBN
deferring/VBG
shipments/NNS
in/IN
recent/JJ
years/NNS
./.
``/``
To/TO
the/DT
professionals/NNS
in/IN
the/DT
trade/NN
it/PRP
did/VBD
n't/RB
cause/VB
much/JJ
surprise/NN
./.
The/DT
March/NNP
futures/NNS
contract/NN
traded/VBD
as/RB
high/JJ
as/IN
14.24/CD
cents/NNS
,/,
but/CC
could/MD
n't/RB
sustain/VB
the/DT
advance/NN
,/,
''/''
he/PRP
said/VBD
./.
LIVESTOCK/NNP
AND/CC
MEATS/NNPS
:/:
The/DT
prices/NNS
of/IN
cattle/NNS
,/,
hogs/NNS
and/CC
pork/NN
belly/NN
futures/NNS
contracts/NNS
rebounded/VBD
as/IN
livestock/NN
traders/NNS
shook/VBD
off/IN
fears/NNS
that/IN
the/DT
Friday/NNP
stock/NN
market/NN
plunge/NN
would/MD
chill/VB
consumer/NN
spending/NN
,/,
which/WDT
in/IN
turn/NN
would/MD
hurt/VB
retail/JJ
sales/NNS
of/IN
beef/NN
and/CC
pork/NN
./.
The/DT
prices/NNS
of/IN
most/JJS
livestock/NN
futures/NNS
contracts/NNS
had/VBD
dropped/VBN
sharply/RB
Monday/NNP
./.
Cattle/NNS
futures/NNS
prices/NNS
were/VBD
also/RB
supported/VBN
yesterday/NN
by/IN
signs/NNS
that/IN
supermarket/NN
chains/NNS
are/VBP
making/VBG
plans/NNS
to/TO
increase/VB
their/PRP$
promotions/NNS
concerning/VBG
beef/NN
./.
GRAINS/NNPS
AND/CC
SOYBEANS/NNPS
:/:
The/DT
prices/NNS
of/IN
most/JJS
soybean/NN
and/CC
soybean-meal/NN
futures/NNS
contracts/NNS
rose/VBD
amid/IN
rumors/NNS
that/IN
the/DT
Soviet/NNP
Union/NNP
is/VBZ
interested/VBN
in/IN
buying/VBG
from/IN
the/DT
U.S./NNP
or/CC
South/NNP
America/NNP
about/IN
250,000/CD
metric/JJ
tons/NNS
of/IN
soybeans/NNS
and/CC
as/RB
many/JJ
as/IN
400,000/CD
metric/JJ
tons/NNS
of/IN
soybean/NN
meal/NN
./.
Traders/NNS
are/VBP
especially/RB
sensitive/JJ
to/TO
reports/NNS
of/IN
possible/JJ
U.S./NNP
soybean/NN
sales/NNS
because/IN
U.S./NNP
exports/NNS
are/VBP
lagging/VBG
./.
Since/IN
Sept./NNP
1/CD
,/,
about/IN
13/CD
million/CD
fewer/JJR
bushels/NNS
of/IN
U.S./NNP
soybeans/NNS
have/VBP
been/VBN
sold/VBN
overseas/RB
than/IN
for/IN
the/DT
same/JJ
period/NN
last/JJ
year/NN
./.
Corn/NN
futures/NNS
prices/NNS
rose/VBD
slightly/RB
while/IN
wheat/NN
prices/NNS
settled/VBD
mixed/VBN
./.
Moody/NNP
's/POS
Investors/NNPS
Service/NNP
Inc./NNP
,/,
fretting/VBG
about/IN
increasing/VBG
competitive/JJ
pressure/NN
on/IN
Ryder/NNP
,/,
placed/VBD
about/IN
$/$
2.8/CD
billion/CD
in/IN
company/NN
securities/NNS
under/IN
review/NN
for/IN
possible/JJ
downgrade/NN
./.
Ratings/NNS
under/IN
review/NN
are/VBP
Ryder/NNP
's/POS
A-1/NN
collateral/JJ
trust/NN
debentures/NNS
,/,
A-2/NN
senior/JJ
notes/NNS
and/CC
bonds/NNS
,/,
A-2/NN
preferred/VBN
stock/NN
and/CC
the/DT
company/NN
's/POS
Prime-1/NN
rating/NN
for/IN
commercial/JJ
paper/NN
./.
Moody/NNP
's/POS
said/VBD
it/PRP
is/VBZ
assessing/VBG
the/DT
strategies/NNS
Ryder/NNP
's/POS
management/NN
may/MD
follow/VB
in/IN
addressing/VBG
significant/JJ
challenges/NNS
in/IN
some/DT
major/JJ
markets/NNS
./.
The/DT
rating/NN
agency/NN
said/VBD
it/PRP
is/VBZ
focusing/VBG
especially/RB
on/IN
the/DT
transportation/NN
service/NN
company/NN
's/POS
efforts/NNS
to/TO
control/VB
costs/NNS
,/,
improve/VB
margins/NNS
and/CC
enhance/VB
its/PRP$
competitive/JJ
position/NN
in/IN
its/PRP$
primary/JJ
business/NN
,/,
vehicle/NN
leasing/NN
and/CC
rental/NN
./.
The/DT
nations/NNS
of/IN
southern/JJ
Africa/NNP
know/VBP
a/DT
lot/NN
about/IN
managing/VBG
elephants/NNS
;/:
their/PRP$
herds/NNS
are/VBP
thriving/VBG
./.
But/CC
the/DT
nations/NNS
of/IN
Europe/NNP
and/CC
North/NNP
America/NNP
have/VBP
decided/VBN
they/PRP
know/VBP
better/RB
./.
At/IN
this/DT
week/NN
's/POS
U.N./NNP
conference/NN
in/IN
Lausanne/NNP
,/,
they/PRP
imposed/VBD
a/DT
global/JJ
ivory/NN
ban/NN
that/WDT
seeks/VBZ
to/TO
overturn/VB
local/JJ
policies/NNS
./.
A/DT
Zimbabwean/NNP
delegate/NN
argued/VBD
that/IN
the/DT
ban/NN
would/MD
``/``
guarantee/VB
the/DT
extinction/NN
of/IN
the/DT
elephant/NN
./.
''/''
Legitimate/JJ
ranchers/NNS
,/,
who/WP
have/VBP
an/DT
interest/NN
in/IN
preserving/VBG
the/DT
herds/NNS
,/,
would/MD
go/VB
out/IN
of/IN
business/NN
./.
Poachers/NNS
would/MD
control/VB
the/DT
underground/JJ
trade/NN
./.
Many/JJ
delegates/NNS
were/VBD
willing/JJ
to/TO
craft/VB
a/DT
compromise/NN
,/,
but/CC
U.S./NNP
delegate/NN
Constance/NNP
Harriman/NNP
and/CC
others/NNS
thundered/VBD
that/DT
down/RP
./.
The/DT
Greens/NNP
from/IN
the/DT
First/NNP
World/NNP
wanted/VBD
a/DT
morality/NN
play/NN
,/,
not/RB
a/DT
negotiation/NN
./.
Fortunately/RB
,/,
the/DT
nations/NNS
of/IN
southern/JJ
Africa/NNP
have/VBP
n't/RB
totally/RB
surrendered/VBN
their/PRP$
sovereignty/NN
./.
Five/CD
countries/NNS
announced/VBD
they/PRP
would/MD
not/RB
honor/VB
what/WP
one/CD
Zimbabwean/JJ
delegate/NN
wryly/RB
called/VBD
the/DT
``/``
made/VBN
in/IN
Switzerland/NNP
''/''
solution/NN
./.
In/IN
fact/NN
,/,
they/PRP
seemed/VBD
a/DT
mite/NN
resentful/JJ
./.
The/DT
director/NN
of/IN
Zimbabwe/NNP
's/POS
Wildlife/NNP
Department/NNP
described/VBD
American/JJ
conservationists/NNS
as/IN
``/``
fat/JJ
little/JJ
puppies/NNS
from/IN
urban/JJ
environments/NNS
who/WP
do/VBP
n't/RB
know/VB
a/DT
thing/NN
about/IN
Africa/NNP
./.
''/''
That/DT
's/VBZ
not/RB
fair/JJ
;/:
they/PRP
're/VBP
not/RB
all/RB
fat/JJ
./.
HUGO'S/NNP
BLAST/NN
generates/VBZ
pleas/NNS
for/IN
aid/NN
from/IN
South/NNP
Carolina/NNP
small/JJ
businesses/NNS
./.
The/DT
Small/NNP
Business/NNP
Administration/NNP
has/VBZ
received/VBN
more/RBR
than/IN
5,000/CD
formal/JJ
requests/NNS
for/IN
disaster/NN
loans/NNS
because/IN
of/IN
the/DT
hurricane/NN
./.
About/IN
45/CD
%/NN
of/IN
requests/NNS
for/IN
SBA/NNP
relief/NN
loans/NNS
,/,
which/WDT
also/RB
are/VBP
available/JJ
to/TO
homeowners/NNS
,/,
come/VBD
from/IN
small/JJ
businesses/NNS
,/,
compared/VBN
with/IN
a/DT
25/CD
%/NN
business/NN
share/NN
after/IN
most/JJS
disasters/NNS
./.
The/DT
SBA/NNP
expects/VBZ
to/TO
make/VB
about/IN
$/$
1/CD
billion/CD
in/IN
Hurricane/NNP
Hugo/NNP
loans/NNS
./.
The/DT
disaster/NN
fund/NN
is/VBZ
replenished/VBN
by/IN
loan/NN
repayments/NNS
./.
Hardest/RBS
hit/VBN
by/IN
Hugo/NNP
in/IN
South/NNP
Carolina/NNP
were/VBD
small/JJ
retailers/NNS
tied/VBN
to/TO
the/DT
tourist/NN
industry/NN
and/CC
businesses/NNS
in/IN
agriculture/NN
and/CC
cultivated/VBN
seafood/NN
./.
The/DT
State/NNP
Development/NNP
Board/NNP
set/VBD
up/IN
a/DT
Hugo/NNP
Hotline/NNP
to/TO
accept/VB
business-to-business/JJ
help/NN
./.
After/IN
NBC/NNP
weather/NN
man/NN
Willard/NNP
Scott/NNP
broadcast/VBD
the/DT
hot-line/NN
number/NN
,/,
it/PRP
was/VBD
flooded/VBN
with/IN
10,000/CD
calls/NNS
./.
Last/JJ
week/NN
,/,
the/DT
U.S./NNP
Chamber/NNP
of/IN
Commerce/NNP
began/VBD
using/VBG
its/PRP$
national/JJ
TV/NN
show/NN
to/TO
seek/VB
help/NN
,/,
such/JJ
as/IN
equipment/NN
,/,
for/IN
business/NN
owners/NNS
./.
Local/JJ
bankers/NNS
and/CC
accountants/NNS
help/VBP
applicants/NNS
fill/VB
out/IN
forms/NNS
./.
``/``
It/PRP
helps/VBZ
us/PRP
,/,
and/CC
people/NNS
feel/VB
better/RB
talking/VBG
to/TO
someone/NN
who/WP
's/VBZ
gone/VBN
through/IN
the/DT
same/JJ
thing/NN
,/,
''/''
an/DT
SBA/NNP
official/NN
says/VBZ
./.
HEALTH/NN
BENEFITS/NNS
remain/VBP
a/DT
central/JJ
lobbying/VBG
effort/NN
,/,
even/RB
as/IN
Section/NN
89/CD
fades/NNS
./.
The/DT
Senate/NNP
,/,
after/IN
deleting/VBG
Section/NN
89/CD
repeal/NN
from/IN
its/PRP$
deficit-reduction/JJ
bill/NN
,/,
still/RB
is/VBZ
expected/VBN
to/TO
join/VB
the/DT
House/NN
in/IN
voting/VBG
to/TO
kill/VB
the/DT
law/NN
,/,
which/WDT
forces/VBZ
companies/NNS
to/TO
provide/VB
comparable/JJ
benefits/NNS
to/TO
laborers/NNS
and/CC
executives/NNS
alike/RB
./.
In/IN
lobbying/VBG
on/IN
other/JJ
health-coverage/NN
topics/NNS
,/,
the/DT
National/NNP
Federation/NNP
of/IN
Independent/NNP
Business/NNP
will/MD
press/VB
for/IN
legislation/NN
that/WDT
would/MD
give/VB
self-employed/JJ
people/NNS
a/DT
100/CD
%/NN
tax/NN
deduction/NN
for/IN
their/PRP$
own/JJ
health/NN
plans/NNS
,/,
up/IN
from/IN
25/CD
%/NN
currently/RB
./.
And/CC
the/DT
group/NN
will/MD
urge/VB
that/IN
the/DT
federal/JJ
government/NN
pre-empt/VB
state/NN
rules/NNS
on/IN
what/WP
must/MD
be/VB
covered/VBN
by/IN
employers/NNS
'/POS
health/NN
insurance/NN
./.
Small-business/NN
groups/NNS
also/RB
will/MD
fight/VB
the/DT
medical-leave/JJ
provision/NN
of/IN
legislation/NN
that/WDT
would/MD
expand/VB
parental/JJ
leaves/NNS
./.
And/CC
they/PRP
still/RB
oppose/VBP
as/IN
too/RB
costly/JJ
an/DT
employer-paid/JJ
health/NN
insurance/NN
bill/NN
sponsored/VBN
by/IN
Sen./NNP
Edward/NNP
Kennedy/NNP
D./NNP
,/,
Mass/NNP
./.
his/PRP$
proposal/NN
to/TO
phase/VB
in/IN
small/JJ
business/NN
only/RB
gradually/RB
./.
There/EX
is/VBZ
also/RB
worry/VB
that/IN
the/DT
Pepper/NNP
Commission/NNP
studying/VBG
long-term/JJ
health/NN
care/NN
will/MD
again/RB
push/VB
lawmakers/NNS
toward/IN
employerpaid/JJ
solutions/NNS
./.
The/DT
Section/NN
89/CD
victory/NN
could/MD
have/VB
a/DT
downside/NN
by/IN
making/VBG
it/PRP
harder/JJR
to/TO
oppose/VB
lawmakers/NNS
on/IN
other/JJ
health/NN
proposals/NNS
./.
``/``
With/IN
the/DT
repeal/NN
of/IN
Section/NN
89/CD
,/,
we/PRP
can/MD
no/RB
longer/RB
say/VB
they/PRP
're/VBP
discouraging/VBG
businesses/NNS
from/IN
offering/VBG
health/NN
plans/NNS
,/,
''/''
says/VBZ
Christine/NNP
Russell/NNP
,/,
the/DT
Chamber/NNP
of/IN
Commerce/NNP
's/POS
small-business/NN
advocate/NN
./.
JUMPING/NNP
THE/NNP
GUN/NNP
:/:
Sen./NNP
Lloyd/NNP
Bentsen/NNP
D./NNP
,/,
Texas/NNP
a/DT
private/JJ
word/NN
to/TO
John/NNP
Motley/NNP
,/,
lobbyist/NN
for/IN
the/DT
National/NNP
Federation/NNP
of/IN
Independent/NNP
Business/NNP
,/,
resulted/VBD
in/IN
a/DT
news/NN
release/NN
saying/VBG
that/IN
the/DT
Senate/NNP
Finance/NNP
Committee/NNP
chairman/NN
would/MD
recommend/VB
repeal/NN
of/IN
Section/NN
89/CD
./.
Even/RB
though/IN
the/DT
announcement/NN
was/VBD
true/JJ
in/IN
the/DT
end/NN
,/,
it/PRP
was/VBD
issued/VBN
without/IN
the/DT
senator/NN
's/POS
permission/NN
./.
``/``
I/PRP
blew/VBD
it/PRP
,/,
''/''
Mr./NNP
Motley/NNP
says/VBZ
apologetically/RB
./.
``/``
It/PRP
was/VBD
a/DT
timing/NN
mistake/NN
./.
''/''
PRISON-SHOP/NNP
BLUES/NNPS
:/:
Sen./NNP
Strom/NNP
Thurmond/NNP
R./NNP
,/,
S.C/NNP
./.
pending/VBG
legislation/NN
to/TO
end/VB
the/DT
preference/NN
that/IN
the/DT
federal/JJ
prison/NN
system/NN
gets/VBZ
in/IN
selling/VBG
prisoner-made/JJ
furniture/NN
and/CC
other/JJ
goods/NNS
to/TO
government/NN
agencies/NNS
./.
Small-business/NN
suppliers/NNS
want/VBP
prisons/NNS
to/TO
stop/VB
getting/VBG
high/JJ
priority/NN
,/,
especially/RB
as/IN
prison/NN
production/NN
grows/VBZ
with/IN
swelling/VBG
inmate/NN
populations/NNS
./.
Last/JJ
year/NN
,/,
the/DT
prisons/NNS
'/POS
sales/NNS
to/TO
the/DT
Pentagon/NNP
totaled/VBD
$/$
336/CD
million/CD
./.
REPAIR/NN
SHOPS/NNS
SCRAP/VBP
for/IN
more/JJR
access/NN
to/TO
work/VB
on/IN
auto-emissions/NNS
systems/NNS
./.
Groups/NNS
representing/VBG
some/DT
independent/JJ
auto-repair/JJ
shops/NNS
join/VBP
a/DT
compromise/NN
on/IN
the/DT
Clean/NNP
Air/NNP
legislation/NN
worked/VBD
out/IN
between/IN
environmentalists/NNS
and/CC
Rep./NNP
Henry/NNP
Waxman/NNP
D./NNP
,/,
Calif/NNP
./.
The/DT
plan/NN
would/MD
increase/VB
the/DT
warranty/NN
on/IN
auto-emission/NN
systems/NNS
to/TO
eight/CD
years/NNS
or/CC
80,000/CD
miles/NNS
from/IN
five/CD
years/NNS
or/CC
50,000/CD
for/IN
major/JJ
parts/NNS
./.
But/CC
the/DT
warranty/NN
on/IN
simpler/JJR
parts/NNS
would/MD
be/VB
lowered/VBN
to/TO
two/CD
years/NNS
or/CC
24,000/CD
miles/NNS
./.
The/DT
garage/NN
owners/NNS
say/VBP
they/PRP
would/MD
benefit/VB
because/IN
car/NN
owners/NNS
would/MD
be/VB
less/RBR
likely/JJ
to/TO
go/VB
back/RB
to/TO
dealers/NNS
for/IN
the/DT
simpler/JJR
repairs/NNS
after/IN
two/CD
years/NNS
./.
The/DT
repair/NN
shops/NNS
are/VBP
n't/RB
united/VBN
,/,
however/RB
./.
Shops/NNS
represented/VBN
by/IN
the/DT
Automotive/NNP
Service/NNP
Industry/NNP
Association/NNP
and/CC
the/DT
Motor/NNP
Equipment/NNP
Manufacturers/NNPS
Association/NNP
oppose/VBP
any/DT
increase/NN
in/IN
warranty/NN
length/NN
./.
They/PRP
say/VBP
the/DT
longer/JJR
the/DT
warranty/NN
,/,
the/DT
longer/JJR
customers/NNS
will/MD
automatically/RB
return/VB
to/TO
new-car/NN
dealers/NNS
,/,
which/WDT
then/RB
find/VBP
non-warranty/NN
work/NN
that/WDT
might/MD
otherwise/RB
go/VB
to/TO
repair/NN
shops/NNS
./.
The/DT
House/NNP
Energy/NNP
Committee/NNP
will/MD
debate/VB
the/DT
issue/NN
later/RB
this/DT
month/NN
./.
Stan/NNP
Hathcock/NNP
,/,
an/DT
Atlanta/NNP
garage/NN
owner/NN
who/WP
opposes/VBZ
a/DT
longer/JJR
warranty/NN
,/,
estimates/VBZ
that/IN
the/DT
current/JJ
plan/NN
costs/VBZ
him/PRP
as/RB
much/RB
as/IN
$/$
15,000/CD
a/DT
year/NN
in/IN
lost/VBN
business/NN
./.
SMALL/NNP
TALK/NNP
:/:
Some/DT
70/CD
%/NN
of/IN
graduates/NNS
who/WP
recently/RB
earned/VBD
an/DT
M.B.A./NN
degree/NN
say/VBP
they/PRP
'd/MD
prefer/VB
to/TO
work/VB
in/IN
or/CC
own/VB
a/DT
small/JJ
company/NN
,/,
yet/CC
most/JJS
take/VBP
jobs/NNS
with/IN
large/JJ
concerns/NNS
,/,
says/VBZ
a/DT
survey/NN
by/IN
the/DT
Foster/NNP
McKay/NNP
Group/NNP
,/,
a/DT
New/NNP
York/NNP
recruiting/VBG
firm/NN
.../:
./.
Cardinal/NNP
Scientific/NNP
Inc./NNP
of/IN
Waldorf/NNP
,/,
Md./NNP
,/,
seeks/VBZ
a/DT
Small/NNP
Business/NNP
Innovation/NNP
Research/NNP
grant/NN
to/TO
produce/VB
a/DT
``/``
nozzle/NN
assembly/NN
for/IN
an/DT
Army/NN
mass/NN
delousing/VBG
outfit/NN
./.
''/''
Banc/NNP
One/CD
Corp./NNP
said/VBD
Frank/NNP
E./NNP
McKinney/NNP
plans/VBZ
to/TO
retire/VB
as/IN
the/DT
bank/NN
holding/VBG
company/NN
's/POS
president/NN
effective/JJ
Jan./NNP
12/CD
./.
Banc/NNP
One/CD
said/VBD
``/``
it/PRP
is/VBZ
contemplated/VBN
''/''
that/IN
John/NNP
B./NNP
McCoy/NNP
,/,
chairman/NN
and/CC
chief/NN
executive/NN
officer/NN
,/,
will/MD
assume/VB
the/DT
additional/JJ
position/NN
of/IN
president/NN
upon/IN
Mr./NNP
McKinney/NNP
's/POS
retirement/NN
./.
Mr./NNP
McKinney/NNP
,/,
50/CD
years/NNS
old/JJ
,/,
was/VBD
chairman/NN
and/CC
chief/NN
executive/NN
of/IN
American/NNP
Fletcher/NNP
Corp./NNP
,/,
Indianapolis/NNP
,/,
when/WRB
that/DT
bank/NN
holding/VBG
company/NN
merged/VBD
into/IN
Banc/NNP
One/CD
in/IN
January/NNP
1987/CD
./.
The/DT
company/NN
said/VBD
Mr./NNP
McKinney/NNP
plans/VBZ
to/TO
retire/VB
because/IN
the/DT
process/NN
of/IN
affiliating/VBG
American/NNP
Fletcher/NNP
into/IN
Banc/NNP
One/CD
``/``
is/VBZ
considered/VBN
completed/VBN
./.
''/''
Mr./NNP
McKinney/NNP
will/MD
continue/VB
as/IN
chairman/NN
of/IN
the/DT
board/NN
and/CC
chairman/NN
of/IN
the/DT
executive/JJ
committee/NN
of/IN
Banc/NNP
One/CD
Indiana/NNP
Corp./NNP
,/,
the/DT
successor/NN
company/NN
to/TO
American/NNP
Fletcher/NNP
Corp./NNP
,/,
but/CC
will/MD
no/RB
longer/RB
be/VB
active/JJ
in/IN
day-to-day/JJ
management/NN
./.
He/PRP
will/MD
remain/VB
on/IN
the/DT
Banc/NNP
One/CD
board/NN
./.
The/DT
Treasury/NNP
plans/VBZ
to/TO
raise/VB
$/$
1.55/CD
billion/CD
in/IN
new/JJ
cash/NN
with/IN
the/DT
sale/NN
Monday/NNP
of/IN
about/IN
$/$
15.6/CD
billion/CD
in/IN
short-term/JJ
bills/NNS
to/TO
redeem/VB
$/$
14.1/CD
billion/CD
in/IN
maturing/VBG
bills/NNS
./.
The/DT
offering/NN
will/MD
be/VB
divided/VBN
evenly/RB
between/IN
13-week/JJ
and/CC
26-week/JJ
bills/NNS
maturing/VBG
on/IN
Jan./NNP
25/CD
,/,
1990/CD
,/,
and/CC
April/NNP
26/CD
,/,
1990/CD
,/,
respectively/RB
./.
Tenders/NNS
for/IN
the/DT
bills/NNS
,/,
available/JJ
in/IN
minimum/JJ
$/$
10,000/CD
denominations/NNS
,/,
must/MD
be/VB
received/VBN
by/IN
1/CD
p.m./NN
EDT/NNP
Monday/NNP
at/IN
the/DT
Treasury/NN
or/CC
at/IN
Federal/NNP
Reserve/NNP
banks/NNS
or/CC
branches/NNS
./.
Moody/NNP
's/POS
Investors/NNPS
Service/NNP
Inc./NNP
said/VBD
it/PRP
lowered/VBD
ratings/NNS
on/IN
about/IN
$/$
650/CD
million/CD
of/IN
Beatrice/NNP
Co./NNP
debt/NN
,/,
citing/VBG
the/DT
closely/RB
held/VBN
Chicago/NNP
food/NN
concern/NN
's/POS
proposed/VBN
recapitalization/NN
./.
The/DT
ratings/NNS
concern/NN
said/VBD
it/PRP
downgraded/VBD
Beatrice/NNP
notes/NNS
,/,
Euronotes/NNS
and/CC
certain/JJ
industrial/JJ
revenue/NN
bonds/NNS
to/TO
single-B-1/NN
from/IN
Ba-3/NN
and/CC
the/DT
company/NN
's/POS
subordinated/VBN
debentures/NNS
to/TO
single-B-3/NN
from/IN
single-B-2/NN
./.
Moody/NNP
's/POS
said/VBD
the/DT
proposed/VBN
recaptilization/NN
may/MD
``/``
limit/VB
the/DT
company/NN
's/POS
ability/NN
to/TO
realize/VB
its/PRP$
profit/NN
potential/NN
''/''
and/CC
that/IN
paying/VBG
dividends/NNS
from/IN
a/DT
new/JJ
series/NN
of/IN
preferred/VBN
could/MD
squeeze/VB
``/``
basic/JJ
business/NN
operations/NNS
./.
''/''
A/DT
Beatrice/NNP
spokesman/NN
did/VBD
n't/RB
return/VB
calls/NNS
seeking/VBG
comment/NN
./.
Beatrice/NNP
,/,
which/WDT
went/VBD
private/JJ
in/IN
an/DT
$/$
8.2/CD
billion/CD
leveraged/JJ
buy-out/NN
in/IN
1986/CD
,/,
said/VBD
last/JJ
month/NN
that/IN
it/PRP
might/MD
borrow/VB
again/RB
to/TO
help/VB
pay/VB
investors/NNS
as/RB
much/RB
as/IN
$/$
983/CD
million/CD
in/IN
preferred/VBN
stock/NN
and/CC
debt/NN
securities/NNS
./.
When/WRB
the/DT
Soviets/NNPS
announced/VBD
their/PRP$
last/JJ
soldier/NN
had/VBD
left/VBN
Afghanistan/NNP
in/IN
February/NNP
,/,
the/DT
voices/NNS
of/IN
skepticism/NN
were/VBD
all/DT
but/CC
drowned/VBD
out/IN
by/IN
an/DT
international/JJ
chorus/NN
of/IN
euphoria/NN
./.
It/PRP
was/VBD
``/``
the/DT
Soviets/NNPS
'/POS
Vietnam/NNP
./.
''/''
The/DT
Kabul/NNP
regime/NN
would/MD
fall/VB
./.
Millions/NNS
of/IN
refugees/NNS
would/MD
rush/VB
home/NN
./.
A/DT
resistance/NN
government/NN
would/MD
walk/VB
into/IN
Kabul/NNP
./.
Those/DT
who/WP
bought/VBD
that/DT
illusion/NN
are/VBP
now/RB
bewildered/VBN
./.
Eight/CD
months/NNS
after/IN
Gen./NNP
Boris/NNP
Gromov/NNP
walked/VBD
across/IN
the/DT
bridge/NN
into/IN
the/DT
U.S.S.R./NNP
,/,
a/DT
Soviet-controlled/JJ
regime/NN
remains/VBZ
in/IN
Kabul/NNP
,/,
the/DT
refugees/NNS
sit/VBP
in/IN
their/PRP$
camps/NNS
,/,
and/CC
the/DT
restoration/NN
of/IN
Afghan/JJ
freedom/NN
seems/VBZ
as/RB
far/RB
off/IN
as/RB
ever/RB
./.
But/CC
there/EX
never/RB
was/VBD
a/DT
chance/NN
that/IN
the/DT
Afghan/JJ
resistance/NN
would/MD
overthrow/VB
the/DT
Kabul/NNP
regime/NN
quickly/RB
and/CC
easily/RB
./.
Soviet/JJ
leaders/NNS
said/VBD
they/PRP
would/MD
support/VB
their/PRP$
Kabul/NNP
clients/NNS
by/IN
all/DT
means/NNS
necessary/JJ
--/:
and/CC
did/VBD
./.
The/DT
U.S./NNP
said/VBD
it/PRP
would/MD
fully/RB
support/VB
the/DT
resistance/NN
--/:
and/CC
did/VBD
n't/RB
./.
With/IN
the/DT
February/NNP
1987/CD
U.N./NNP
accords/NNS
``/``
relating/VBG
to/TO
Afghanistan/NNP
,/,
''/''
the/DT
Soviet/NNP
Union/NNP
got/VBD
everything/NN
it/PRP
needed/VBD
to/TO
consolidate/VB
permanent/JJ
control/NN
./.
The/DT
terms/NNS
of/IN
the/DT
Geneva/NNP
accords/NNS
leave/VBP
Moscow/NNP
free/JJ
to/TO
provide/VB
its/PRP$
clients/NNS
in/IN
Kabul/NNP
with/IN
assistance/NN
of/IN
any/DT
kind/NN
--/:
including/VBG
the/DT
return/NN
of/IN
Soviet/JJ
ground/NN
forces/NNS
--/:
while/IN
requiring/VBG
the/DT
U.S./NNP
and/CC
Pakistan/NNP
to/TO
cut/VB
off/IN
aid/NN
./.
The/DT
only/JJ
fly/NN
in/IN
the/DT
Soviet/JJ
ointment/NN
was/VBD
the/DT
last-minute/JJ
addition/NN
of/IN
a/DT
unilateral/JJ
American/JJ
caveat/NN
,/,
that/DT
U.S./NNP
aid/NN
to/TO
the/DT
resistance/NN
would/MD
continue/VB
as/RB
long/RB
as/IN
Soviet/JJ
aid/NN
to/TO
Kabul/NNP
did/VBD
./.
But/CC
as/RB
soon/RB
as/IN
the/DT
accords/NNS
were/VBD
signed/VBN
,/,
American/JJ
officials/NNS
sharply/RB
reduced/VBD
aid/NN
./.
In/IN
February/NNP
1989/CD
,/,
when/WRB
the/DT
Soviets/NNPS
said/VBD
they/PRP
had/VBD
completed/VBN
their/PRP$
pullout/NN
,/,
the/DT
U.S./NNP
cut/VBD
it/PRP
further/RB
./.
Not/RB
so/IN
the/DT
Soviets/NNPS
./.
Gen./NNP
Gromov/NNP
himself/PRP
said/VBD
Soviet/JJ
troops/NNS
expected/VBD
to/TO
leave/VB
behind/IN
more/RBR
than/IN
$/$
1/CD
billion/CD
of/IN
military/JJ
equipment/NN
and/CC
installations/NNS
for/IN
the/DT
Kabul/NNP
regime/NN
./.
Since/IN
the/DT
troop/NN
withdrawal/NN
,/,
Moscow/NNP
has/VBZ
poured/VBN
in/IN
an/DT
additional/JJ
$/$
200/CD
to/TO
$/$
300/CD
million/CD
worth/NN
per/IN
month/NN
--/:
nearly/RB
$/$
2/CD
billion/CD
since/IN
February/NNP
,/,
equivalent/JJ
to/TO
the/DT
total/JJ
U.S./NNP
aid/NN
to/TO
the/DT
resistance/NN
in/IN
nine/CD
years/NNS
./.
This/DT
includes/VBZ
what/WP
Deputy/NNP
Foreign/NNP
Minister/NNP
Yuli/NNP
Vorontsov/NNP
fetchingly/RB
called/VBD
``/``
new/JJ
peaceful/JJ
long-range/JJ
weapons/NNS
,/,
''/''
including/VBG
more/RBR
than/IN
800/CD
SCUD/NNP
missiles/NNS
./.
By/IN
early/JJ
May/NNP
,/,
Moscow/NNP
had/VBD
delivered/VBN
,/,
for/IN
example/NN
,/,
1,000/CD
trucks/NNS
,/,
about/IN
100/CD
tanks/NNS
,/,
artillery/NN
and/CC
hundreds/NNS
of/IN
other/JJ
combat/NN
vehicles/NNS
./.
Later/RB
that/DT
month/NN
,/,
it/PRP
added/VBD
an/DT
entire/JJ
tank/NN
brigade/NN
,/,
including/VBG
120/CD
T-72/NN
tanks/NNS
and/CC
more/JJR
than/IN
40/CD
BMP/NNP
state-of-the-art/JJ
infantry/NN
fighting/VBG
vehicles/NNS
./.
By/IN
September/NNP
,/,
a/DT
new/JJ
Reinforced/NNP
Motorized/NNP
Rifle/NNP
Brigade/NNP
with/IN
an/DT
additional/JJ
300/CD
combat/NN
vehicles/NNS
,/,
1,000/CD
more/JJR
trucks/NNS
and/CC
10,000/CD
Soviet-trained/JJ
Afghan/JJ

troops/NNS
had/VBD
arrived/VBN
in/IN
Kandahar/NNP
./.
In/IN
the/DT
last/JJ
few/JJ
weeks/NNS
,/,
Moscow/NNP
has/VBZ
added/VBN
FROG-7B/NN
missiles/NNS
,/,
the/DT
bomber/NN
version/NN
of/IN
the/DT
An-12/NN
,/,
MiG-23BN/NN
high-altitude/JJ
aircraft/NN
,/,
MiG-29s/NNS
,/,
which/WDT
can/MD
outfly/VB
Pakistan/NNP
's/POS
U.S.-built/JJ
F16s/NNS
,/,
and/CC
Sukhoi/NNP
SU-27/NN
fighter-bombers/NNS
,/,
which/WDT
can/MD
outfly/VB
the/DT
MiG-29s/NNS
./.
Moscow/NNP
claims/VBZ
this/DT
is/VBZ
all/DT
needed/VBN
to/TO
protect/VB
the/DT
Kabul/NNP
regime/NN
against/IN
the/DT
guerrilla/NN
resistance/NN
./.
It/PRP
is/VBZ
well-known/JJ
that/IN
the/DT
regular/JJ
Afghan/JJ
infantry/NN
is/VBZ
filled/VBN
with/IN
reluctant/JJ
conscripts/NNS
./.
But/CC
this/DT
is/VBZ
not/RB
the/DT
entire/JJ
Afghan/JJ
army/NN
,/,
and/CC
it/PRP
is/VBZ
no/DT
longer/JJR
Kabul/NNP
's/POS
only/JJ
military/JJ
force/NN
./.
Complete/JJ
units/NNS
have/VBP
been/VBN
trained/VBN
and/CC
indoctrinated/VBN
in/IN
the/DT
U.S.S.R./NNP
and/CC
other/JJ
East/NNP
bloc/NN
nations/NNS
;/:
30,000/CD
to/TO
40,000/CD
of/IN
these/DT
troops/NNS
have/VBP
returned/VBN
./.
In/IN
addition/NN
,/,
the/DT
regime/NN
has/VBZ
established/VBN
well-paid/JJ
paramilitary/JJ
forces/NNS
totaling/VBG
more/RBR
than/IN
100,000/CD
,/,
including/VBG
35,000/CD
Soviet-trained/JJ
troops/NNS
of/IN
the/DT
Interior/NNP
Ministry/NNP
KHAD\/WAD/NN
which/WDT
still/RB
is/VBZ
directed/VBN
by/IN
1,500/CD
Soviet/NNP
KGB/NNP
officers/NNS
./.
Even/RB
if/IN
not/RB
all/PDT
these/DT
forces/NNS
are/VBP
committed/VBN
to/TO
the/DT
regime/NN
,/,
they/PRP
are/VBP
now/RB
dependent/JJ
on/IN
it/PRP
./.
And/CC
thousands/NNS
of/IN
Afghan/JJ
children/NNS
have/VBP
been/VBN

taken/VBN
to/TO
the/DT
Soviet/NNP
Union/NNP
,/,
where/WRB
they/PRP
are/VBP
hostage/NN
for/IN
the/DT
behavior/NN
of/IN
their/PRP$
families/NNS
./.
Since/IN
1981/CD
,/,
Indian/JJ
military/JJ
advisers/NNS
have/VBP
been/VBN
assisting/VBG
the/DT
Kabul/NNP
regime/NN
./.
In/IN
preparation/NN
for/IN
the/DT
withdrawal/NN
,/,
Moscow/NNP
,/,
Kabul/NNP
and/CC
New/NNP
Delhi/NNP
signed/VBD
two/CD
agreements/NNS
for/IN
several/JJ
hundred/CD
newly/RB
civilian/JJ
Indian/JJ
experts/NNS
to/TO
replace/VB
some/DT
of/IN
the/DT
more/RBR
visible/JJ
Soviet/JJ
military/JJ
personnel/NNS
./.
Cuban/JJ
military/JJ
personnel/NNS
also/RB
have/VBP
been/VBN
active/JJ
in/IN
Afghanistan/NNP
since/IN
1979/CD
./.
The/DT
Soviets/NNPS
cut/VBD
a/DT
deal/NN
with/IN
Iran/NNP
:/:
a/DT
future/JJ
Iranian/JJ
role/NN
in/IN
Afghanistan/NNP
in/IN
exchange/NN
for/IN
Iranian/JJ
support/NN
of/IN
Soviet/JJ
policy/NN
./.
The/DT
deal/NN
was/VBD
symbolized/VBN
by/IN
the/DT
restoration/NN
of/IN
the/DT
Shi'ite/NNP
Sultan/NNP
Ali/NNP
Keshtmand/NNP
to/TO
the/DT
Afghan/JJ
prime/JJ
ministry/NN
./.
Moreover/RB
,/,
serious/JJ
questions/NNS
have/VBP
been/VBN
raised/VBN
about/IN
the/DT
claimed/VBN
withdrawal/NN
of/IN
Soviet/JJ
forces/NNS
./.
Before/IN
his/PRP$
assassination/NN
in/IN
1988/CD
,/,
President/NNP
Zia/NNP
of/IN
Pakistan/NNP
repeatedly/RB
stated/VBD
that/IN
fresh/JJ
Soviet/JJ
troops/NNS
were/VBD
being/VBG
inserted/VBN
into/IN
Afghanistan/NNP
even/RB
as/IN
others/NNS
were/VBD
ostentatiously/RB
withdrawn/VBN
./.
Rep./NNP
Bill/NNP
McCollum/NNP
R./NNP
,/,
Fla./NNP
these/DT
included/VBD
20,000/CD
to/TO
30,000/CD
Soviet/NNP
Central/NNP
Asian/NNP
KGB/NNP
Border/NNP
Guards/NNPS
,/,
ethnically/RB
indistinguishable/JJ
from/IN
Afghans/NNPS
and/CC
wearing/VBG
unmarked/JJ
uniforms/NNS
./.
Meanwhile/RB
,/,
the/DT
Kabul/NNP
regime/NN
is/VBZ
increasingly/RB
successful/JJ
at/IN
portraying/VBG
the/DT
resistance/NN
as/IN
bloody-minded/JJ
fanatics/NNS
./.
In/IN
this/DT
they/PRP
are/VBP
aided/VBN
by/IN
years/NNS
of/IN
American/JJ
,/,
European/JJ
,/,
Pakistani/JJ
and/CC
Saudi/JJ
support/NN
for/IN
the/DT
most/RBS
extreme/JJ
factions/NNS
--/:
radical/JJ
Islamic/JJ
fanatics/NNS
with/IN
leaders/NNS
whose/WP$
policies/NNS
are/VBP
anathema/NN
to/TO
the/DT
Afghan/JJ
public/NN
./.
This/DT
heavy/JJ
outside/JJ
support/NN
for/IN
the/DT
worst/JJS
has/VBZ
undermined/VBN
better/JJR
,/,
moderate/JJ
leaders/NNS
./.
In/IN
autumn/NN
last/JJ
year/NN
,/,
for/IN
example/NN
,/,
the/DT
regime/NN
garrison/NN
at/IN
Kandahar/NNP
was/VBD
prepared/VBN
to/TO
surrender/VB
the/DT
city/NN
to/TO
resistance/NN
moderates/NNS
./.
At/IN
the/DT
last/JJ
minute/NN
,/,
however/RB
,/,
Pakistani/JJ
officials/NNS
sent/VBD
in/IN
Gulbuddin/NNP
Hekhmatyar/NNP
,/,
perhaps/RB
the/DT
most/RBS
hated/VBN
and/CC
feared/VBN
of/IN
the/DT
extremists/NNS
,/,
with/IN
a/DT
demand/NN
that/IN
the/DT
surrender/NN
be/VB
made/VBN
to/TO
his/PRP$
forces/NNS
./.
The/DT
deal/NN
fell/VBD
through/IN
,/,
and/CC
Kandahar/NNP
remains/VBZ
a/DT
major/JJ
regime/NN
base/NN
./.
The/DT
resistance/NN
lacks/VBZ
not/RB
only/JJ
air/NN
power/NN
,/,
armor/NN
and/CC
expertise/NN
but/CC
often/RB
such/JJ
essentials/NNS
as/IN
maps/NNS
,/,
mine/NN
detectors/NNS
,/,
or/CC
even/RB
winter/NN
gloves/NNS
./.
Experienced/VBN
resistance/NN
commanders/NNS
wanted/VBD
to/TO
use/VB
guerrilla/NN
action/NN
and/CC
siege/NN
tactics/NNS
to/TO
wear/VB
down/IN
the/DT
regime/NN
./.
Instead/RB
,/,
they/PRP
were/VBD
pressured/JJ
by/IN
Pakistan/NNP
's/POS
ISI/NNP
,/,
the/DT
channel/NN
for/IN
their/PRP$
support/NN
,/,
into/IN
attacking/VBG
Jalalabad/NNP
./.
They/PRP
took/VBD
more/RBR
than/IN
25/CD
%/NN
casualties/NNS
;/:
journalists/NNS
report/VBP
that/IN
they/PRP
faced/VBD
minefields/NNS
without/IN
mine/NN
detectors/NNS
./.
The/DT
wonder/NN
is/VBZ
not/RB
that/IN
the/DT
resistance/NN
has/VBZ
failed/VBN
to/TO
topple/VB
the/DT
Kabul/NNP
regime/NN
,/,
but/CC
that/IN
it/PRP
continues/VBZ
to/TO
exist/VB
and/CC
fight/VB
at/IN
all/DT
./.
Last/JJ
summer/NN
,/,
in/IN
response/NN
to/TO
congressional/JJ
criticism/NN
,/,
the/DT
State/NNP
Department/NNP
and/CC
the/DT
CIA/NNP
said/VBD
they/PRP
had/VBD
resumed/VBN
military/JJ
aid/NN
to/TO
the/DT
resistance/NN
months/NNS
after/IN
it/PRP
was/VBD
cut/VBN
off/IN
;/:
but/CC
it/PRP
is/VBZ
not/RB
clear/JJ
how/WRB
much/RB
is/VBZ
being/VBG
sent/VBN
or/CC
when/WRB
it/PRP
will/MD
arrive/VB
./.
For/IN
months/NNS
the/DT
resistance/NN
has/VBZ
been/VBN
defenseless/JJ
against/IN
air/NN
attack/NN
./.
Thus/RB
far/RB
there/EX
is/VBZ
no/DT
indication/NN
that/IN
they/PRP
have/VBP
been/VBN
re-supplied/VBN
with/IN
Stingers/NNPS
or/CC
other/JJ
anti-aircraft/JJ
weapons/NNS
./.
Indeed/RB
,/,
U.S./NNP
officials/NNS
have/VBP
indicated/VBN
to/TO
the/DT
press/NN
that/IN
the/DT
continuation/NN
of/IN
aid/NN
depends/VBZ
on/IN
what/WDT
success/NN
the/DT
weakened/VBN
resistance/NN
achieves/VBZ
by/IN
the/DT
end/NN
of/IN
this/DT
year/NN
./.
Moscow/NNP
and/CC
Kabul/NNP
must/MD
have/VB
found/VBN
that/DT
information/NN
useful/JJ
./.
For/IN
a/DT
decade/NN
U.S./NNP
policy/NN
has/VBZ
been/VBN
incoherent/JJ
,/,
based/VBN
on/IN
miscalculation/NN
and/CC
the/DT
defense/NN
of/IN
bureaucratic/JJ
and/CC
political/JJ
turf/NN
./.
No/DT
settlement/NN
negotiated/VBN
by/IN
others/NNS
can/MD
force/VB
the/DT
Afghan/NNP
people/NNS
to/TO
give/VB
up/IN
their/PRP$
struggle/NN
./.
A/DT
cutoff/NN
of/IN
U.S./NNP
military/JJ
aid/NN
would/MD
merely/RB
abandon/VB
them/PRP
to/TO
die/VB
in/IN
vain/JJ
./.
Creation/NN
of/IN
a/DT
new/JJ
,/,
realistic/JJ
U.S./NNP
policy/NN
is/VBZ
long/RB
overdue/JJ
./.
Ms./NNP
Klass/NNP
,/,
editor/NN
and/CC
co-author/NN
of/IN
``/``
Afghanistan/NNP
:/:
The/NNP
Great/NNP
Game/NNP
Revisited/NNP
''/''
(/(
Freedom/NNP
House/NNP
the/DT
Freedom/NNP
House/NNP
program/NN
on/IN
Afghanistan\/Southwest/NNP
Asia/NNP
./.
Nothing/NN
stirred/VBD
the/DT
soul/NN
of/IN
Ronald/NNP
Reagan/NNP
and/CC
his/PRP$
disciples/NNS
as/RB
much/RB
as/IN
the/DT
crusade/NN
to/TO
aid/VB
Nicaragua/NNP
's/POS
Contra/NNP
rebels/NNS
,/,
or/CC
the/DT
dream/NN
of/IN
building/VBG
a/DT
space-based/JJ
defense/NN
shield/NN
to/TO
knock/VB
out/IN
Soviet/JJ
nuclear/JJ
missiles/NNS
./.
Yet/RB
under/IN
Mr./NNP
Reagan/NNP
's/POS
preferred/VBN
successor/NN
,/,
President/NNP
Bush/NNP
,/,
those/DT
two/CD
cherished/VBN
national-security/NN
causes/NNS
are/VBP
withering/VBG
on/IN
the/DT
vine/NN
./.
And/CC
,/,
surprisingly/RB
,/,
little/RB
more/RBR
than/IN
a/DT
whimper/NN
of/IN
protest/NN
is/VBZ
being/VBG
heard/VBN
,/,
even/RB
though/IN
Reaganauts/NNS
once/RB
breathed/VBD
fire/NN
supporting/VBG
the/DT
Contras/NNPS
and/CC
the/DT
Strategic/NNP
Defense/NNP
Initiative/NNP
./.
``/``
The/DT
programs/NNS
have/VBP
arthritis/NN
,/,
''/''
says/VBZ
Rep./NNP
Henry/NNP
Hyde/NNP
,/,
a/DT
conservative/JJ
Republican/NNP
from/IN
Illinois/NNP
./.
Yet/RB
,/,
he/PRP
asserts/VBZ
,/,
``/``
you/PRP
look/VBP
around/RB
.../:
and/CC
you/PRP
say/VBP
,/,
`/``
Who/WP
are/VBP
the/DT
leaders/NNS
?/.
Who/WP
is/VBZ
going/VBG
to/TO
carry/VB
the/DT
water/NN
?/.
'/''
''/''
It/PRP
is/VBZ
n't/RB
surprising/JJ
that/IN
President/NNP
Bush/NNP
has/VBZ
n't/RB
led/VBN
a/DT
crusade/NN
to/TO
pump/VB
up/IN
the/DT
Contras/NNPS
or/CC
SDI/NNP
./.
Though/IN
he/PRP
nominally/RB
supports/VBZ
both/DT
programs/NNS
,/,
Mr./NNP
Bush/NNP
has/VBZ
n't/RB
been/VBN
a/DT
passionate/JJ
champion/NN
of/IN
either/DT
cause/NN
,/,
as/IN
Mr./NNP
Reagan/NNP
was/VBD
./.
What/WP
's/VBZ
surprising/VBG
is/VBZ
that/IN
there/EX
is/VBZ
n't/RB
more/JJR
of/IN
a/DT
conservative/JJ
outcry/NN
as/IN
the/DT
Bush/NNP
administration/NN
lets/VBZ
the/DT
programs/NNS
slip/VB
down/IN
the/DT
national-priority/JJ
list/NN
./.
A/DT
combination/NN
of/IN
factors/NNS
--/:
a/DT
weariness/NN
among/IN
some/DT
conservatives/NNS
,/,
a/DT
decline/NN
in/IN
the/DT
perception/NN
of/IN
a/DT
Soviet/JJ
threat/NN
and/CC
a/DT
preoccupation/NN
with/IN
other/JJ
issues/NNS
--/:
seem/VBP
to/TO
explain/VB
the/DT
strange/JJ
tranquility/NN
./.
Above/IN
all/DT
,/,
though/RB
,/,
conservative/JJ
Republicans/NNPS
who/WP
have/VBP
championed/VBN
both/PDT
the/DT
Contras/NNPS
and/CC
SDI/NNP
are/VBP
reluctant/JJ
to/TO
attack/VB
a/DT
Republican/JJ
president/NN
for/IN
failing/VBG
to/TO
do/VB
more/RBR
--/:
though/IN
that/DT
reluctance/NN
may/MD
be/VB
receding/VBG
./.
``/``
We/PRP
want/VBP
to/TO
complain/VB
,/,
we/PRP
want/VBP
to/TO
say/VB
something/NN
about/IN
it/PRP
,/,
and/CC
we/PRP
're/VBP
going/VBG
to/TO
as/IN
it/PRP
gets/VBZ
worse/JJR
,/,
''/''
says/VBZ
Rep./NNP
Dan/NNP
Burton/NNP
,/,
an/DT
Indiana/NNP
Republican/NNP
who/WP
has/VBZ
been/VBN
a/DT
staunch/JJ
Contra/NNP
backer/NN
./.
``/``
But/CC
it/PRP
's/VBZ
like/IN
kicking/VBG
your/PRP$
father/NN
in/IN
the/DT
pants/NNS
./.
You/PRP
hate/VBP
to/TO
do/VB
it/PRP
because/IN
he/PRP
's/VBZ
your/PRP$
father/NN
./.
''/''
Mr./NNP
Burton/NNP
says/VBZ
conservatives/NNS
'/POS
unhappiness/NN
with/IN
Mr./NNP
Bush/NNP
's/POS
cautious/JJ
handling/NN
of/IN
the/DT
recent/JJ
unsuccessful/JJ
coup/NN
in/IN
Panama/NNP
will/MD
make/VB
them/PRP
more/RBR
willing/JJ
to/TO
speak/VB
out/IN
./.
Of/IN
course/NN
,/,
neither/DT
President/NNP
Bush/NNP
nor/CC
the/DT
Congress/NNP
has/VBZ
actually/RB
abandoned/VBN
the/DT
Contras/NNPS
or/CC
SDI/NNP
./.
Mr./NNP
Bush/NNP
has/VBZ
struck/VBN
a/DT
deal/NN
with/IN
congressional/JJ
leaders/NNS
to/TO
provide/VB
nonlethal/JJ
aid/NN
to/TO
the/DT
Contras/NNPS
until/IN
Nicaragua/NNP
holds/VBZ
national/JJ
elections/NNS
next/IN
February/NNP
./.
But/CC
the/DT
administration/NN
has/VBZ
dropped/VBN
any/DT
effort/NN
to/TO
win/VB
military/JJ
aid/NN
for/IN
the/DT
rebels/NNS
./.
And/CC
the/DT
administration/NN
's/POS
deal/NN
with/IN
Congress/NNP
gives/VBZ
several/JJ
congressional/JJ
committees/NNS
the/DT
right/NN
to/TO
cut/VB
off/IN
even/RB
humanitarian/JJ
aid/NN
next/IN
month/NN
,/,
though/IN
the/DT
committees/NNS
are/VBP
likely/JJ
to/TO
let/VB
aid/NN
continue/VB
until/IN
February/NNP
./.
Most/JJS
analysts/NNS
think/VBP
there/EX
's/POS
little/JJ
prospect/NN
the/DT
Contras/NNPS
can/MD
be/VB
a/DT
significant/JJ
fighting/NN
force/NN
without/IN
U.S./NNP
arms/NNS
,/,
and/CC
after/IN
the/DT
February/NNP
election/NN
their/PRP$
future/NN
in/IN
any/DT
form/NN
will/MD
be/VB
murky/JJ
at/IN
best/RB
./.
Instead/RB
of/IN
focusing/VBG
on/IN
the/DT
Contras/NNPS
,/,
Mr./NNP
Bush/NNP
has/VBZ
switched/VBN
to/TO
urging/VBG
members/NNS
of/IN
Congress/NNP
--/:
most/RBS
recently/RB
in/IN
a/DT
White/NNP
House/NNP
meeting/NN
yesterday/NN
--/:
to/TO
approve/VB
financing/NN
for/IN
the/DT
election/NN
campaign/NN
of/IN
political/JJ
opponents/NNS
of/IN
Nicaragua/NNP
's/POS
Sandinista/NNP
government/NN
./.
The/DT
administration/NN
continues/VBZ
to/TO
support/VB
SDI/NNP
,/,
or/CC
Star/NNP
Wars/NNPS
,/,
and/CC
it/PRP
recently/RB
lobbied/VBD
to/TO
persuade/VB
the/DT
Senate/NNP
to/TO
restore/VB
some/DT
of/IN
the/DT
funds/NNS
it/PRP
planned/VBD
to/TO
cut/VB
from/IN
the/DT
program/NN
./.
And/CC
just/RB
last/JJ
week/NN
,/,
Defense/NNP
Secretary/NNP
Dick/NNP
Cheney/NNP
gave/VBD
a/DT
strong/JJ
speech/NN
listing/VBG
``/``
compelling/JJ
reasons/NNS
''/''
to/TO
push/VB
ahead/RB
with/IN
SDI/NNP
and/CC
saying/VBG
he/PRP
'd/MD
urge/VB
President/NNP
Bush/NNP
to/TO
veto/VB
a/DT
defense/NN
bill/NN
with/IN
``/``
inadequate/JJ
''/''
funding/NN
for/IN
the/DT
program/NN
./.
But/CC
the/DT
strong/JJ
pitch/NN
by/IN
Mr./NNP
Cheney/NNP
may/MD
be/VB
too/RB
little/RB
too/RB
late/JJ
to/TO
prevent/VB
damage/NN
to/TO
SDI/NNP
./.
The/DT
House/NNP
has/VBZ
already/RB
voted/VBN
for/IN
a/DT
deep/JJ
cut/NN
in/IN
funding/NN
,/,
and/CC
in/IN
the/DT
end/NN
the/DT
program/NN
's/POS
backers/NNS
will/MD
be/VB
hard/RB
pressed/VBN
to/TO
head/VB
off/IN
some/DT
reduction/NN
in/IN
spending/VBG
next/JJ
year/NN
./.
And/CC
while/IN
the/DT
defense/NN
secretary/NN
is/VBZ
speaking/VBG
out/IN
,/,
President/NNP
Bush/NNP
himself/PRP
has/VBZ
n't/RB
launched/VBN
any/DT
high-visibility/NN
campaign/NN
to/TO
drum/VB
up/IN
support/NN
,/,
as/IN
President/NNP
Reagan/NNP
did/VBD
./.
The/DT
administration/NN
also/RB
acknowledges/VBZ
that/IN
it/PRP
is/VBZ
n't/RB
pursuing/VBG
Mr./NNP
Reagan/NNP
's/POS
original/JJ
vision/NN
of/IN
an/DT
``/``
impenetrable/JJ
shield/NN
''/''
protecting/VBG
the/DT
whole/JJ
U.S./NNP
,/,
but/CC
rather/RB
a/DT
more/RBR
modest/JJ
version/NN
./.
More/RBR
ominous/JJ
to/TO
SDI/NNP
supporters/NNS
,/,
the/DT
Bush/NNP
administration/NN
appears/VBZ
to/TO
have/VB
tacitly/RB
accepted/VBN
a/DT
new/JJ
arms-control/JJ
proposal/NN
from/IN
the/DT
Soviet/NNP
Union/NNP
that/WDT
spells/VBZ
long-term/JJ
trouble/NN
for/IN
Star/NNP
Wars/NNPS
./.
The/DT
Soviets/NNPS
have/VBP
agreed/VBN
to/TO
complete/VB
a/DT
treaty/NN
cutting/VBG
strategic/JJ
weapons/NNS
without/IN
including/VBG
restrictions/NNS
on/IN
space-based/JJ
defenses/NNS
./.
But/CC
the/DT
Soviets/NNPS
also/RB
are/VBP
insisting/VBG
that/IN
they/PRP
will/MD
reserve/VB
the/DT
right/NN
to/TO
withdraw/VB
from/IN
the/DT
completed/VBN
strategic-arms/NN
treaty/NN
later/RB
on/IN
if/IN
the/DT
U.S./NNP
does/VBZ
SDI/NNP
testing/NN
or/CC
deployment/NN
that/IN
the/DT
Soviets/NNPS
think/VBP
violates/VBZ
the/DT
existing/VBG
anti-ballistic-missile/JJ
treaty/NN
./.
It/PRP
will/MD
be/VB
hard/JJ
down/IN
the/DT
road/NN
to/TO
persuade/VB
Congress/NNP
to/TO
approve/VB
money/NN
for/IN
SDI/NNP
plans/NNS
if/IN
lawmakers/NNS
fear/VBP
those/DT
plans/NNS
could/MD
scuttle/VB
a/DT
completed/VBN
treaty/NN
./.
As/IN
a/DT
result/NN
,/,
Frank/NNP
Gaffney/NNP
,/,
a/DT
former/JJ
Reagan/NNP
Pentagon/NNP
aide/NN
who/WP
now/RB
heads/VBZ
the/DT
Center/NNP
for/IN
Security/NNP
Policy/NNP
,/,
charges/VBZ
that/IN
the/DT
administration/NN
's/POS
``/``
professions/NNS
of/IN
continued/VBN
commitment/NN
to/TO
development/NN
and/CC
deployment/NN
of/IN
the/DT
SDI/NNP
program/NN
strain/VBP
credulity/NN
./.
''/''
Still/RB
,/,
proponents/NNS
may/MD
be/VB
shying/VBG
away/RB
from/IN
more/JJR
drumbeating/NN
because/IN
they/PRP
sense/VBP
political/JJ
tides/NNS
have/VBP
turned/VBN
against/IN
arming/NN
the/DT
Nicaraguan/JJ
rebels/NNS
or/CC
boosting/VBG
spending/NN
on/IN
SDI/NNP
--/:
particularly/RB
when/WRB
the/DT
public/NN
perceives/VBZ
the/DT
Soviet/JJ
threat/NN
is/VBZ
declining/VBG
under/IN
Mikhail/NNP
Gorbachev/NNP
./.
In/IN
fact/NN
,/,
because/IN
communism/NN
seems/VBZ
to/TO
be/VB
beating/VBG
a/DT
global/JJ
retreat/NN
,/,
some/DT
conservatives/NNS
may/MD
simply/RB
be/VB
so/RB
pleased/VBN
that/IN
their/PRP$
anti-communist/JJ
philosophy/NN
is/VBZ
prevailing/VBG
that/IN
they/PRP
do/VBP
n't/RB
have/VB
the/DT
fire/NN
at/IN
the/DT
moment/NN
to/TO
push/VB
controversial/JJ
programs/NNS
./.
``/``
The/DT
short/JJ
of/IN
it/PRP
is/VBZ
that/IN
the/DT
most/RBS
hard-bitten/JJ
among/IN
us/PRP
can/MD
not/RB
get/VB
into/IN
too/RB
sour/JJ
a/DT
mood/NN
with/IN
communism/NN
collapsing/VBG
,/,
''/''
says/VBZ
Mitchell/NNP
Daniels/NNP
,/,
a/DT
former/JJ
Reagan/NNP
White/NNP
House/NNP
aide/NN
who/WP
now/RB
is/VBZ
president/NN
of/IN
the/DT
Hudson/NNP
Institute/NNP
./.
Some/DT
activists/NNS
are/VBP
toiling/VBG
to/TO
raise/VB
the/DT
profile/NN
of/IN
the/DT
two/CD
causes/NNS
./.
But/CC
they/PRP
say/VBP
they/PRP
ca/MD
n't/RB
make/VB
much/JJ
headway/NN
because/IN
of/IN
a/DT
lack/NN
of/IN
willing/JJ
leaders/NNS
in/IN
a/DT
position/NN
to/TO
turn/VB
the/DT
tide/NN
./.
One/CD
longtime/NN
champion/NN
of/IN
these/DT
programs/NNS
in/IN
Congress/NNP
,/,
Republican/NNP
whip/NN
Newt/NNP
Gingrich/NNP
of/IN
Georgia/NNP
,/,
is/VBZ
distracted/VBN
by/IN
questions/NNS
about/IN
his/PRP$
ethics/NNS
,/,
conservatives/NNS
note/VBP
./.
Other/JJ
conservative/JJ
champions/NNS
,/,
like/IN
Wyoming/NNP
Republican/NNP
Sen./NNP
Malcolm/NNP
Wallop/NNP
,/,
a/DT
longtime/NN
SDI/NNP
advocate/NN
,/,
do/VBP
n't/RB
have/VB
the/DT
clout/NN
with/IN
the/DT
Bush/NNP
White/NNP
House/NNP
that/IN
they/PRP
enjoyed/VBD
with/IN
President/NNP
Reagan/NNP
./.
Above/IN
all/DT
,/,
though/RB
,/,
proponents/NNS
say/VBP
neither/CC
the/DT
Contra/NNP
nor/CC
the/DT
SDI/NNP
cause/NN
can/MD
be/VB
pushed/VBN
much/RB
further/RB
without/IN
more/JJR
presidential/JJ
support/NN
./.
``/``
For/IN
there/EX
to/TO
be/VB
wind/NN
in/IN
the/DT
sails/NNS
of/IN
any/DT
program/NN
,/,
the/DT
chief/NN
executive/NN
has/VBZ
to/TO
be/VB
blowing/VBG
in/IN
the/DT
sails/NNS
,/,
''/''
says/VBZ
Rep./NNP
Burton/NNP
./.
All/PDT
this/DT
causes/VBZ
Rep./NNP
Hyde/NNP
to/TO
muse/VB
about/IN
an/DT
alternate/JJ
way/NN
to/TO
drum/VB
up/IN
more/JJR
enthusiasm/NN
./.
``/``
What/WP
I/PRP
'd/MD
like/VB
to/TO
see/VB
,/,
if/IN
he/PRP
is/VBZ
up/IN
to/TO
it/PRP
,/,
is/VBZ
for/IN
Reagan/NNP
to/TO
take/VB
to/TO
the/DT
hustings/NN
to/TO
regenerate/VB
enthusiasm/NN
for/IN
SDI/NNP
,/,
''/''
the/DT
congressman/NN
says/VBZ
./.
We/PRP
're/VBP
sorry/JJ
to/TO
report/VB
that/IN
on/IN
Monday/NNP
President/NNP
Bush/NNP
accepted/VBD
the/DT
resignation/NN
of/IN
William/NNP
Allen/NNP
as/IN
chairman/NN
of/IN
the/DT
U.S./NNP
Civil/NNP
Rights/NNPS
Commission/NNP
./.
Mr./NNP
Allen/NNP
,/,
appointed/VBN
by/IN
President/NNP
Reagan/NNP
,/,
grew/VBD
understandably/RB
tired/JJ
of/IN
dealing/VBG
with/IN
the/DT
guerrilla/NN
tactics/NNS
of/IN
his/PRP$
enemies/NNS
./.
His/PRP$
recent/JJ
speech/NN
,/,
provocatively/RB
titled/VBN
``/``
Blacks/NNS
?/.
Animals/NNS
?/.
Homosexuals/NNS
?/.
What/WP
is/VBZ
a/DT
Minority/NN
?/.
''/''
caused/VBD
an/DT
uproar/NN
when/WRB
its/PRP$
title/NN
leaked/VBD
out/IN
./.
Mr./NNP
Allen/NNP
's/POS
commissioners/NNS
voted/VBD
to/TO
call/VB
his/PRP$
unread/JJ
speech/NN
``/``
thoughtless/JJ
,/,
disgusting/JJ
and/CC
unnecessarily/RB
inflammatory/JJ
./.
''/''
Commissioner/NNP
Mary/NNP
Francis/NNP
Berry/NNP
said/VBD
it/PRP
was/VBD
``/``
another/DT
sad/JJ
episode/NN
in/IN
the/DT
saga/NN
of/IN
the/DT
unguided/JJ
missile/NN
who/WP
is/VBZ
chairman/NN
./.
''/''
Rep./NNP
Don/NNP
Edwards/NNP
,/,
the/DT
California/NNP
Democrat/NNP
,/,
warned/VBD
Mr./NNP
Allen/NNP
that/IN
the/DT
speech/NN
would/MD
be/VB
``/``
outside/IN
the/DT
scope/NN
of/IN
the/DT
commission/NN
's/POS
jurisdiction/NN
./.
''/''
Thomas/NNP
Stoddard/NNP
,/,
head/NN
of/IN
the/DT
Lambda/NNP
Legal/NNP
Defense/NNP
Fund/NNP
,/,
called/VBD
the/DT
prospect/NN
of/IN
the/DT
speech/NN
``/``
frankly/RB
shocking/JJ
./.
''/''
We/PRP
've/VBP
actually/RB
read/VBN
the/DT
speech/NN
./.
Mr./NNP
Allen/NNP
began/VBD
it/PRP
with/IN
a/DT
warning/NN
to/TO
his/PRP$
hosts/NNS
,/,
a/DT
California/NNP
church/NN
group/NN
that/WDT
opposes/VBZ
rights/NNS
for/IN
homosexuals/NNS
./.
He/PRP
said/VBD
that/IN
other/JJ
participants/NNS
in/IN
the/DT
conference/NN
``/``
do/VBP
not/RB
believe/VB
that/IN
the/DT
rights/NNS
of/IN
Americans/NNPS
should/MD
be/VB
guaranteed/VBN
to/TO
citizens/NNS
who/WP
are/VBP
homosexual/JJ
,/,
''/''
but/CC
that/IN
``/``
I/PRP
mean/VBP
to/TO
persuade/VB
you/PRP
to/TO
the/DT
opposite/JJ
view/NN
./.
''/''
He/PRP
recalled/VBD
to/TO
the/DT
audience/NN
a/DT
``/``
strange/JJ
,/,
infelicitous/JJ
''/''
analogy/NN
he/PRP
once/RB
heard/VBD
arguing/VBG
``/``
now/RB
that/IN
we/PRP
have/VBP
finally/RB
recognized/VBN
that/IN
American/JJ
blacks/NNS
have/VBP
rights/NNS
,/,
we/PRP
need/VBP
to/TO
do/VB
the/DT
same/JJ
for/IN
animals/NNS
./.
''/''
Mr./NNP
Allen/NNP
objected/VBD
to/TO
this/DT
analogy/NN
because/IN
it/PRP
seems/VBZ
to/TO
``/``
assimilate/VB
the/DT
status/NN
of/IN
blacks/NNS
to/TO
that/DT
of/IN
animals/NNS
--/:
as/IN
a/DT
mere/JJ
project/NN
of/IN
charity/NN
,/,
of/IN
humaneness/NN
./.
''/''
Rights/NNS
on/IN
such/PDT
a/DT
basis/NN
,/,
whether/IN
for/IN
blacks/NNS
or/CC
homosexuals/NNS
,/,
are/VBP
``/``
mere/JJ
indulgences/NNS
,/,
''/''
he/PRP
said/VBD
,/,
subject/JJ
to/TO
being/VBG
taken/VBN
back/RB
./.
He/PRP
says/VBZ
the/DT
title/NN
of/IN
his/PRP$
speech/NN
was/VBD
to/TO
make/VB
his/PRP$
point/NN
that/IN
Americans/NNPS
have/VBP
rights/NNS
as/IN
individuals/NNS
,/,
not/RB
as/IN
members/NNS
of/IN
certain/JJ
select/JJ
groups/NNS
./.
His/PRP$
speech/NN
criticized/VBD
the/DT
``/``
idiocy/NN
of/IN
notions/NNS
of/IN
protected/VBN
groups/NNS
in/IN
society/NN
''/''
as/IN
opposed/VBN
to/TO
individual/JJ
equality/NN
or/CC
,/,
as/IN
he/PRP
put/VBD
it/PRP
,/,
in/IN
``/``
a/DT
common/JJ
destiny/NN
as/IN
Americans/NNPS
./.
''/''
Instead/RB
of/IN
lobbying/VBG
for/IN
special/JJ
treatment/NN
,/,
Mr./NNP
Allen/NNP
said/VBD
that/IN
homosexuals/NNS
and/CC
others/NNS
should/MD
try/VB
to/TO
ensure/VB
equal/JJ
treatment/NN
under/IN
the/DT
law/NN
and/CC
not/RB
aim/VB
for/IN
special/JJ
privileges/NNS
that/WDT
would/MD
risk/VB
``/``
invidious/JJ
retrenchment/NN
with/IN
government/NN
complicity/NN
./.
''/''
This/DT
hardly/RB
sounds/VBZ
like/IN
an/DT
anti-homosexual/JJ
screed/NN
./.
What/WP
's/VBZ
really/RB
going/VBG
on/IN
here/RB
?/.
The/DT
three/CD
most/RBS
important/JJ
things/NNS
to/TO
understand/VB
about/IN
Mr./NNP
Allen/NNP
is/VBZ
that/IN
he/PRP
is/VBZ
a/DT
black/JJ
conservative/JJ
intellectual/NN
--/:
a/DT
triple/JJ
threat/NN
to/TO
the/DT
liberal/JJ
establishment/NN
./.
Mr./NNP
Allen/NNP
,/,
who/WP
teaches/VBZ
government/NN
at/IN
prestigious/JJ
Harvey/NNP
Mudd/NNP
College/NNP
in/IN
California/NNP
and/CC
will/MD
remain/VB
a/DT
member/NN
of/IN
the/DT
commission/NN
,/,
has/VBZ
spent/VBN
years/NNS
arguing/VBG
that/IN
civil/JJ
rights/NNS
are/VBP
individuals/NNS
'/POS
rights/NNS
./.
He/PRP
last/RB
made/VBD
waves/NNS
when/WRB
he/PRP
dared/VBD
to/TO
defend/VB
an/DT
Indian/JJ
girl/NN
who/WP
had/VBD
been/VBN
adopted/VBN
by/IN
non-Indian/JJ
parents/NNS
off/IN
her/PRP$
reservation/NN
./.
Mr./NNP
Allen/NNP
quickly/RB
ran/VBD
up/IN
against/IN
the/DT
liberal/JJ
establishment/NN
again/RB
,/,
which/WDT
somehow/RB
elevated/VBD
the/DT
vague/JJ
concept/NN
of/IN
``/``
Indian/NNP
rights/NNS
''/''
above/IN
the/DT
rights/NNS
of/IN
individual/JJ
Indians/NNPS
./.
There/EX
is/VBZ
a/DT
huge/JJ
divide/NN
between/IN
Mr./NNP
Allen/NNP
's/POS
we're-all-in-this-together/JJ
view/NN
and/CC
the/DT
divisive/JJ
litigation/NN
approach/NN
of/IN
the/DT
civil/JJ
rights/NNS
groups/NNS
./.
Indeed/RB
,/,
the/DT
gap/NN
is/VBZ
so/RB
large/JJ
that/IN
Mr./NNP
Allen/NNP
's/POS
critics/NNS
refuse/VBP
to/TO
engage/VB
the/DT
debate/NN
./.
Their/PRP$
ridicule/NN
of/IN
him/PRP
is/VBZ
no/DT
substitute/NN
for/IN
argument/NN
./.
Their/PRP$
effort/NN
to/TO
run/VB
him/PRP
out/IN
of/IN
Washington/NNP
is/VBZ
an/DT
embarrassment/NN
to/TO
the/DT
original/JJ
purpose/NN
of/IN
their/PRP$
own/JJ
movement/NN
./.
We/PRP
hope/VBP
the/DT
next/JJ
head/NN
of/IN
the/DT
Civil/NNP
Rights/NNPS
Commission/NNP
will/MD
be/VB
as/RB
brave/JJ
as/IN
Mr./NNP
Allen/NNP
in/IN
making/VBG
the/DT
case/NN
for/IN
equality/NN
of/IN
civil/JJ
rights/NNS
./.
Bearings/NNP
Inc./NNP
said/VBD
its/PRP$
chairman/NN
,/,
John/NNP
R./NNP
Cunin/NNP
,/,
will/MD
retire/VB
as/IN
an/DT
officer/NN
of/IN
the/DT
company/NN
on/IN
Jan./NNP
2/CD
./.
George/NNP
L./NNP
LaMore/NNP
,/,
president/NN
and/CC
chief/NN
executive/NN
officer/NN
,/,
will/MD
become/VB
chairman/NN
and/CC
chief/NN
executive/NN
upon/IN
Mr./NNP
Cunin/NNP
's/POS
retirement/NN
./.
John/NNP
C./NNP
Dannemiller/NNP
,/,
executive/JJ
vice/NN
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
,/,
will/MD
become/VB
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
./.
Mr./NNP
Cunin/NNP
,/,
65/CD
years/NNS
old/JJ
,/,
was/VBD
chief/NN
executive/NN
of/IN
the/DT
distributor/NN
of/IN
bearings/NNS
and/CC
power-transmission/JJ
products/NNS
from/IN
1982/CD
to/TO
1988/CD
./.
He/PRP
will/MD
continue/VB
as/IN
a/DT
director/NN
./.
Mr./NNP
LaMore/NNP
,/,
63/CD
,/,
a/DT
48-year/JJ
veteran/NN
at/IN
Bearings/NNP
,/,
has/VBZ
been/VBN
president/NN
since/IN
1983/CD
./.
Mr./NNP
Dannemiller/NNP
,/,
51/CD
,/,
joined/VBD
Bearings/NNP
in/IN
August/NNP
1988/CD
from/IN
Leaseway/NNP
Transportation/NNP
Corp./NNP
,/,
where/WRB
he/PRP
was/VBD
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
./.
He/PRP
has/VBZ
been/VBN
a/DT
Bearings/NNP
director/NN
since/IN
1985/CD
./.
The/DT
appointments/NNS
are/VBP
part/NN
of/IN
a/DT
planned/VBN
succession/NN
at/IN
the/DT
company/NN
./.
Soviet/JJ
leader/NN
Mikhail/NNP
Gorbachev/NNP
opened/VBD
a/DT
major/JJ
U.S./NNP
trade/NN
exhibition/NN
in/IN
Moscow/NNP
and/CC
spent/VBD
two/CD
hours/NNS
touring/VBG
some/DT
of/IN
the/DT
150/CD
stalls/NNS
representing/VBG
such/JJ
blue-chip/JJ
companies/NNS
as/IN
General/NNP
Motors/NNPS
Corp./NNP
,/,
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
and/CC
Johnson/NNP
&/CC
Johnson/NNP
./.
At/IN
the/DT
Archer-Daniels-Midland/NNP
Co./NNP
stand/NN
,/,
Mrs./NNP
Nelson/NNP
Rockefeller/NNP
,/,
a/DT
board/NN
member/NN
,/,
offered/VBD
him/PRP
a/DT
soy/NN
burger/NN
./.
He/PRP
did/VBD
n't/RB
bite/VB
./.
The/DT
exhibition/NN
by/IN
the/DT
U.S.-U.S.S.R./NNP
Trade/NNP
and/CC
Economic/NNP
Council/NNP
underscores/VBZ
the/DT
growing/VBG
U.S./NNP
interest/NN
in/IN
that/DT
nation/NN
's/POS
market/NN
,/,
though/IN
trade/NN
between/IN
the/DT
two/CD
countries/NNS
is/VBZ
a/DT
minuscule/JJ
$/$
3/CD
billion/CD
./.
The/DT
Soviet/JJ
president/NN
and/CC
his/PRP$
prime/JJ
minister/NN
,/,
Nikolai/NNP
Ryzhkov/NNP
,/,
spent/VBD
the/DT
longest/JJS
time/NN
,/,
about/IN
15/CD
minutes/NNS
,/,
at/IN
the/DT
IBM/NNP
stand/NN
,/,
where/WRB
they/PRP
got/VBD
souvenir/NN
computer-chip/JJ
key/NN
rings/NNS
./.
At/IN
the/DT
GM/NNP
stall/NN
,/,
they/PRP
barely/RB
looked/VBD
at/IN
a/DT
gleaming/VBG
Cadillac/NNP
,/,
preferring/VBG
to/TO
talk/VB
about/IN
cooperation/NN
possibilities/NNS
./.
In/IN
Beijing/NNP
,/,
meantime/NN
,/,
China/NNP
opened/VBD
an/DT
international/JJ
aviation/NN
show/NN
,/,
but/CC
the/DT
West/NN
's/POS
embargo/NN
on/IN
military/JJ
deals/NNS
and/CC
uncertainty/NN
about/IN
the/DT
nation/NN
's/POS
stability/NN
kept/VBD
many/JJ
foreign/JJ
exhibitors/NNS
away/RB
./.
Officials/NNS
said/VBD
91/CD
companies/NNS
from/IN
14/CD
countries/NNS
,/,
including/VBG
the/DT
U.S./NNP
,/,
had/VBD
displays/NNS
,/,
down/IN
from/IN
about/IN
260/CD
firms/NNS
from/IN
more/JJR
than/IN
20/CD
countries/NNS
at/IN
the/DT
last/JJ
show/NN
in/IN
Japanese/JJ
air-conditioner/NN
maker/NN
Daikin/NNP
Industries/NNPS
Ltd./NNP
was/VBD
fined/VBN
two/CD
million/CD
yen/NN
$/$
14,000/CD
the/DT
Soviet/NNP
Union/NNP
a/DT
chemical/NN
solution/NN
that/WDT
could/MD
be/VB
used/VBN
in/IN
missile-guidance/JJ
systems/NNS
./.
A/DT
Daikin/NNP
executive/NN
in/IN
charge/NN
of/IN
exports/NNS
when/WRB
the/DT
high-purity/NN
halogenated/VBD
hydrocarbon/NN
was/VBD
sold/VBN
to/TO
the/DT
Soviets/NNPS
in/IN
1986/CD
received/VBD
a/DT
suspended/VBN
10-month/JJ
jail/NN
sentence/NN
./.
Judge/NNP
Masaaki/NNP
Yoneyama/NNP
told/VBD
the/DT
Osaka/NNP
District/NNP
Court/NNP
Daikin/NNP
's/POS
``/``
responsibility/NN
is/VBZ
heavy/JJ
because/IN
illegal/JJ
exports/NNS
lowered/VBD
international/JJ
trust/NN
in/IN
Japan/NNP
./.
''/''
Sale/NN
of/IN
the/DT
solution/NN
in/IN
concentrated/VBN
form/NN
to/TO
Communist/NNP
countries/NNS
is/VBZ
prohibited/VBN
by/IN
Japanese/JJ
law/NN
and/CC
by/IN
international/JJ
agreement/NN
./.
A/DT
Soviet/JJ
legislative/JJ
panel/NN
rejected/VBD
as/RB
not/RB
radical/JJ
enough/RB
a/DT
government/NN
proposal/NN
on/IN
decentralizing/VBG
economic/JJ
control/NN
./.
The/DT
newspaper/NN
Leninskoye/NNP
Zamya/NNP
said/VBD
the/DT
committee/NN
decided/VBD
the/DT
plan/NN
to/TO
parcel/VB
out/IN
economic/JJ
powers/NNS
previously/RB
exercised/VBN
by/IN
Moscow/NNP
to/TO
the/DT
country/NN
's/POS
15/CD
republics/NNS
``/``
does/VBZ
n't/RB
reflect/VB
the/DT
radical/JJ
changes/NNS
in/IN
the/DT
Soviet/JJ
federation/NN
./.
''/''
The/DT
committee/NN
gave/VBD
the/DT
government/NN
until/IN
Nov./NNP
15/CD
to/TO
revise/VB
the/DT
proposal/NN
./.
The/DT
move/NN
reflected/VBD
the/DT
growing/VBG
confidence/NN
of/IN
the/DT
revamped/VBN
Supreme/NNP
Soviet/NNP
./.
Scott/NNP
Paper/NNP
Co./NNP
said/VBD
it/PRP
is/VBZ
abandoning/VBG
a/DT
proposed/VBN
$/$
650/CD
million/CD
tree-farming/JJ
project/NN
in/IN
Indonesia/NNP
because/IN
it/PRP
no/RB
longer/RB
expects/VBZ
to/TO
use/VB
as/IN
much/JJ
eucalyptus/NN
pulp/NN
as/RB
previously/RB
anticipated/VBN
./.
The/DT
eucalyptus/NN
plantation/NN
and/CC
pulp/NN
mill/NN
,/,
which/WDT
would/MD
have/VB
covered/VBN
about/IN
175,000/CD
acres/NNS
in/IN
the/DT
Irian/NNP
Jaya/NNP
region/NN
,/,
had/VBD
been/VBN
approved/VBN
by/IN
Indonesia/NNP
's/POS
investment/NN
board/NN
./.
But/CC
it/PRP
was/VBD
opposed/VBN
by/IN
some/DT
environmentalists/NNS
as/IN
a/DT
threat/NN
to/TO
Irian/NNP
Jaya/NNP
's/POS
forests/NNS
and/CC
a/DT
potential/JJ
source/NN
of/IN
social/JJ
unrest/NN
for/IN
the/DT
primitive/JJ
tribes/NNS
who/WP
inhabit/VBP
them/PRP
./.
Yaohan/NNP
Departmentstore/NNP
Co./NNP
of/IN
Japan/NNP
is/VBZ
moving/VBG
its/PRP$
international-operations/NNS
headquarters/NNS
and/CC
holding/VBG
company/NN
to/TO
Hong/NNP
Kong/NNP
to/TO
gain/VB
from/IN
the/DT
British/JJ
colony/NN
's/POS
economic/JJ
advantages/NNS
and/CC
tax/NN
structure/NN
./.
With/IN
funds/NNS
of/IN
5.56/CD
billion/CD
Hong/NNP
Kong/NNP
dollars/NNS
US$/$
712/CD
million/CD
the/DT
new/JJ
company/NN
,/,
Yaohan/NNP
International/NNP
Co./NNP
,/,
plans/VBZ
to/TO
acquire/VB
10/CD
of/IN
Hong/NNP
Kong/NNP
's/POS
top/JJ
restaurants/NNS
./.
It/PRP
also/RB
intends/VBZ
to/TO
set/VB
up/IN
an/DT
international/JJ
wholesale/JJ
market/NN
with/IN
the/DT
Singapore/NNP
government/NN
next/IN
May/NNP
and/CC
to/TO
open/VB
a/DT
department/NN
store/NN
in/IN
Bangkok/NNP
and/CC
shopping/NN
centers/NNS
in/IN
Malaysia/NNP
,/,
Taiwan/NNP
,/,
Canada/NNP
,/,
Chicago/NNP
and/CC
Seattle/NNP
by/IN
December/NNP
1990/CD
./.
The/DT
chain/NN
currently/RB
has/VBZ
90/CD
retail/JJ
outlets/NNS
in/IN
Japan/NNP
,/,
seven/CD
in/IN
the/DT
U.S./NNP
,/,
three/CD
in/IN
Hong/NNP
Kong/NNP
and/CC
a/DT
dozen/NN
more/JJR
scattered/VBN
around/IN
the/DT
globe/NN
./.
Major/JJ
European/JJ
auction/NN
houses/NNS
are/VBP
turning/VBG
increasingly/RB
to/TO
specialized/VBN
sales/NNS
./.
Christie/NNP
's/POS
will/MD
soon/RB
have/VB
a/DT
sale/NN
of/IN
Dada/NNP
and/CC
Symbolist/NNP
art/NN
while/NN
Sotheby/NNP
's/POS
is/VBZ
luring/VBG
collectors/NNS
with/IN
sales/NNS
of/IN
Swiss/JJ
,/,
German/JJ
,/,
Spanish/JJ
,/,
Australian/JJ
and/CC
Canadian/JJ
paintings/NNS
./.
In/IN
Brussels/NNP
,/,
Hotel/NNP
de/IN
Ventes/NNP
Horta/NNP
auctioned/VBD
pistols/NNS
and/CC
sabers/NNS
-/:
along/RB
with/IN
paintings/NNS
and/CC
jewels/NNS
./.
Berlin/NNP
's/POS
Villa/NNP
Grisebach/NNP
will/MD
auction/VB
art/NN
works/NNS
with/IN
pre-sale/JJ
estimates/NNS
of/IN
less/RBR
than/IN
$/$
1,600/CD
on/IN
Nov./NNP
25/CD
./.
The/DT
auction/NN
house/NN
,/,
known/VBN
for/IN
its/PRP$
sales/NNS
of/IN
top-drawer/NN
19th/JJ
and/CC
20th/JJ
century/NN
works/NNS
,/,
is/VBZ
providing/VBG
``/``
a/DT
service/NN
to/TO
clients/NNS
who/WP
do/VBP
n't/RB
want/VB
to/TO
sell/VB
just/RB
their/PRP$
fabulous/JJ
oil/NN
paintings/NNS
,/,
''/''
says/VBZ
Villa/NNP
Grisebach/NNP
's/POS
Vivien/NNP
Reuter/NNP
./.
Antwerp/NNP
auctioneer/NN
Campo/NNP
is/VBZ
less/RBR
concerned/VBN
with/IN
market/NN
niches/NNS
than/IN
with/IN
Belgium/NNP
's/POS
crushing/VBG
tax/NN
and/CC
auction-fee/JJ
burden/NN
./.
``/``
Everything/NN
has/VBZ
to/TO
be/VB
the/DT
same/JJ
between/IN
countries/NNS
,/,
''/''
says/VBZ
Campo/NNP
's/POS
Stefan/NNP
Campo/NNP
,/,
who/WP
is/VBZ
asking/VBG
clients/NNS
to/TO
sign/VB
protest/NN
petitions/NNS
./.
``/``
Then/RB
there/EX
'll/MD
be/VB
fair/JJ
competition/NN
./.
''/''
Ending/VBG
tax-free/JJ
shopping/NN
in/IN
the/DT
European/NNP
Community/NNP
after/IN
1992/CD
could/MD
threaten/VB
more/JJR
than/IN
3,000/CD
jobs/NNS
,/,
the/DT
International/NNP
Duty/NNP
Free/NNP
Confederation/NNP
said/VBD
./.
Instead/RB
of/IN
banning/VBG
such/JJ
shopping/NN
,/,
the/DT
confederation/NN
proposed/VBD
amending/VBG
controls/NNS
to/TO
be/VB
sure/JJ
the/DT
privilege/NN
is/VBZ
n't/RB
abused/VBN
.../:
./.
British/JJ
and/CC
Argentine/JJ
diplomats/NNS
opened/VBD
talks/NNS
in/IN
Madrid/NNP
aimed/VBN
at/IN
restoring/VBG
ties/NNS
severed/VBN
because/IN
of/IN
their/PRP$
1982/CD
war/NN
over/IN
the/DT
Falkland/NNP
Islands/NNPS
./.
Britain/NNP
's/POS
U.N./NNP
representative/NN
and/CC
delegation/NN
head/NN
Crispin/NNP
Tickell/NNP
called/VBD
the/DT
first/JJ
meeting/NN
``/``
good/JJ
,/,
interesting/JJ
and/CC
businesslike/JJ
./.
''/''
Polaroid/NNP
Corp./NNP
,/,
benefiting/VBG
from/IN
staff-reduction/NN
savings/NNS
,/,
reported/VBD
a/DT
strong/JJ
gain/NN
in/IN
third-quarter/NN
operating/VBG
results/NNS
and/CC
net/JJ
income/NN
of/IN
$/$
29.9/CD
million/CD
,/,
or/CC
40/CD
cents/NNS
a/DT
share/NN
,/,
after/IN
preferred-stock/JJ
requirements/NNS
./.
Analysts/NNS
said/VBD
the/DT
numbers/NNS
were/VBD
better/JJR
than/IN
expectations/NNS
,/,
partly/RB
because/IN
of/IN
strong/JJ
profit/NN
margins/NNS
and/CC
a/DT
positive/JJ
foreign-currency/NN
translation/NN
./.
However/RB
,/,
they/PRP
said/VBD
the/DT
company/NN
's/POS
flat/JJ
revenue/NN
was/VBD
a/DT
disappointment/NN
,/,
and/CC
an/DT
indication/NN
that/IN
sales/NNS
of/IN
Polaroid/NNP
's/POS
new/JJ
conventional/JJ
film/NN
in/IN
the/DT
U.S./NNP
have/VBP
been/VBN
sluggish/JJ
./.
Revenue/NN
in/IN
the/DT
third/JJ
quarter/NN
was/VBD
$/$
437.7/CD
million/CD
,/,
almost/RB
unchanged/JJ
from/IN
$/$
436.3/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
Polaroid/NNP
reported/VBD
operating/VBG
profit/NN
before/IN
taxes/NNS
and/CC
interest/NN
costs/NNS
of/IN
$/$
63.1/CD
million/CD
for/IN
the/DT
third/JJ
quarter/NN
,/,
more/RBR
than/IN
double/VB
the/DT
year-before/JJ
$/$
24/CD
million/CD
./.
Charges/NNS
for/IN
staff/NN
cuts/NNS
and/CC
other/JJ
restructuring/VBG
produced/VBN
a/DT
net/JJ
loss/NN
of/IN
$/$
54.1/CD
million/CD
,/,
or/CC
77/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
1988/CD
's/POS
third/JJ
quarter/NN
./.
``/``
I/PRP
'm/VBP
somewhat/RB
skeptical/JJ
about/IN
the/DT
underlying/VBG
demand/NN
''/''
for/IN
Polaroid/NNP
products/NNS
,/,
said/VBD
Michael/NNP
Ellmann/NNP
,/,
an/DT
analyst/NN
with/IN
Wertheim/NNP
Schroder/NNP
&/CC
Co/NNP
./.
``/``
If/IN
you/PRP
believe/VBP
that/IN
a/DT
good/JJ
performance/NN
next/JJ
year/NN
is/VBZ
contingent/JJ
on/IN
an/DT
acceleration/NN
of/IN
revenue/NN
,/,
there/EX
is/VBZ
n't/RB
a/DT
lot/NN
here/RB
to/TO
base/JJ
optimism/NN
on/IN
./.
''/''
Alex/NNP
Henderson/NNP
,/,
an/DT
analyst/NN
with/IN
Prudential-Bache/NNP
,/,
says/VBZ
Polaroid/NNP
officials/NNS
told/VBD
him/PRP
yesterday/NN
that/IN
U.S./NNP
sales/NNS
of/IN
the/DT
company/NN
's/POS
new/JJ
conventional/JJ
film/NN
product/NN
,/,
introduced/VBN
in/IN
the/DT
second/JJ
quarter/NN
,/,
have/VBP
been/VBN
``/``
disappointing/JJ
''/''
after/IN
a/DT
promising/JJ
start/NN
./.
Sam/NNP
Yanes/NNP
,/,
a/DT
Polaroid/NNP
spokesman/NN
,/,
said/VBD
``/``
I/PRP
do/VBP
n't/RB
know/VB
about/IN
disappointing/JJ
,/,
''/''
but/CC
added/VBD
that/IN
the/DT
company/NN
has/VBZ
n't/RB
been/VBN
able/JJ
to/TO
get/VB
the/DT
product/NN
on/IN
the/DT
shelves/NNS
of/IN
some/DT
mass-merchandise/NN
,/,
discount/NN
retailers/NNS
that/IN
it/PRP
had/VBD
hoped/VBN
would/MD
be/VB
carrying/VBG
the/DT
product/NN
already/RB
./.
Mr./NNP
Yanes/NNP
said/VBD
the/DT
film/NN
,/,
One/CD
Film/NNP
,/,
is/VBZ
currently/RB
carried/VBN
at/IN
about/IN
15,000/CD
retail/JJ
outlets/NNS
,/,
including/VBG
drugstores/NNS
and/CC
supermarkets/NNS
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Polaroid/NNP
reported/VBD
earnings/NNS
of/IN
$/$
98.5/CD
million/CD
,/,
or/CC
$/$
1.27/CD
a/DT
share/NN
./.
Last/JJ
year/NN
,/,
the/DT
company/NN
had/VBD
a/DT
nine-month/JJ
loss/NN
of/IN
$/$
15.1/CD
million/CD
,/,
or/CC
23/CD
cents/NNS
a/DT
share/NN
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Polaroid/NNP
closed/VBD
at/IN
$/$
47/CD
,/,
up/IN
$/$
1.125/CD
./.
Why/WRB
is/VBZ
the/DT
stock/NN
market/NN
suddenly/RB
so/RB
volatile/JJ
?/.
Yesterday/NN
,/,
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
did/VBD
a/DT
now/RB
familiar/JJ
dance/NN
:/:
It/PRP
plunged/VBD
60.25/CD
points/NNS
before/IN
lunch/NN
,/,
with/IN
most/JJS
of/IN
the/DT
drop/NN
occurring/VBG
in/IN
25/CD
minutes/NNS
./.
Then/RB
,/,
it/PRP
rebounded/VBD
to/TO
finish/VB
down/IN
only/RB
18.65/CD
points/NNS
./.
And/CC
those/DT
swings/NNS
paled/VB
beside/IN
Friday/NNP
's/POS
190.58-point/JJ
plunge/NN
and/CC
Monday/NNP
's/POS
88.12-point/JJ
recovery/NN
./.
``/``
It/PRP
's/VBZ
madness/NN
--/:
that/IN
in/IN
an/DT
hour/NN
you/PRP
can/MD
whack/VB
off/IN
so/RB
much/JJ
value/NN
,/,
''/''
says/VBZ
Stanford/NNP
Calderwood/NNP
,/,
chairman/NN
of/IN
Trinity/NNP
Investment/NNP
Management/NNP
Corp./NNP
,/,
Boston/NNP
./.
And/CC
,/,
apparently/RB
,/,
it/PRP
is/VBZ
here/RB
to/TO
stay/VB
./.
Richard/NNP
Bernstein/NNP
,/,
senior/JJ
quantitative/JJ
analyst/NN
at/IN
Merrill/NNP
Lynch/NNP
&/CC
Co/NNP
,/,
says/VBZ
,/,
``/``
My/PRP$
gut/NN
feel/NN
is/VBZ
that/IN
we/PRP
'll/MD
live/VB
with/IN
those/DT
swings/NNS
for/IN
a/DT
while/NN
./.
''/''
There/EX
are/VBP
many/JJ
reasons/NNS
for/IN
the/DT
market/NN
's/POS
jumpiness/NN
:/:
new/JJ
trading/NN
vehicles/NNS
such/JJ
as/IN
stock-index/JJ
futures/NNS
and/CC
options/NNS
;/:
computer-driven/JJ
strategies/NNS
like/IN
program/NN
trading/NN
;/:
and/CC
crowd/NN
psychology/NN
./.
But/CC
most/JJS
are/VBP
linked/VBN
by/IN
a/DT
single/JJ
theme/NN
:/:
liquidity/NN
--/:
the/DT
ability/NN
to/TO
get/VB
in/IN
and/CC
out/IN
of/IN
the/DT
market/NN
quickly/RB
./.
Prices/NNS
are/VBP
moving/VBG
up/IN
and/CC
down/IN
so/RB
fast/RB
because/IN
investors/NNS
are/VBP
employing/VBG
ways/NNS
to/TO
turn/VB
over/IN
shares/NNS
at/IN
ever-faster/JJ
rates/NNS
and/CC
increasingly/RB
acting/VBG
in/IN
concert/NN
./.
``/``
Institutions/NNS
are/VBP
herding/VBG
animals/NNS
,/,
''/''
says/VBZ
Peter/NNP
Anderson/NNP
,/,
who/WP
heads/VBZ
the/DT
pension-fund/JJ
management/NN
arm/NN
of/IN
IDS/NNP
Financial/NNP
Services/NNPS
Inc/NNP
./.
``/``
We/PRP
watch/VBP
the/DT
same/JJ
indicators/NNS
and/CC
listen/VBP
to/TO
the/DT
same/JJ
prognosticators/NNS
./.
Like/IN
lemmings/NNS
,/,
we/PRP
tend/VBP
to/TO
move/VB
in/IN
the/DT
same/JJ
direction/NN
at/IN
same/JJ
time/NN
./.
''/''
And/CC
that/IN
,/,
naturally/RB
,/,
exacerbates/VBZ
price/NN
movements/NNS
./.
Institutions/NNS
--/:
who/WP
now/RB
account/VBP
for/IN
most/JJS
trading/NN
--/:
count/VBP
on/IN
being/VBG
able/JJ
to/TO
buy/VB
and/CC
sell/VB
big/JJ
blocks/NNS
of/IN
stock/NN
at/IN
an/DT
eye-blink/NN
./.
But/CC
when/WRB
they/PRP
discover/VBP
that/IN
markets/NNS
are/VBP
n't/RB
always/RB
as/RB
liquid/JJ
as/IN
they/PRP
supposed/VBD
--/:
markets/NNS
jump/VBP
./.
On/IN
Monday/NNP
,/,
for/IN
instance/NN
,/,
Howard/NNP
Ward/NNP
,/,
a/DT
principal/NN
at/IN
Scudder/NNP
,/,
Stevens/NNP
&/CC
Clark/NNP
,/,
found/VBD
that/IN
``/``
you/PRP
could/MD
n't/RB
buy/VB
blue-chips/NNS
at/IN
quoted/VBN
prices/NNS
without/IN
paying/VBG
up/IN
./.
''/''
And/CC
when/WRB
many/JJ
firms/NNS
had/VBD
to/TO
``/``
pay/VB
up/IN
,/,
''/''
Monday/NNP
's/POS
sudden/JJ
rally/NN
was/VBD
sparked/VBN
./.
Trading/NN
in/IN
futures/NNS
and/CC
options/NNS
,/,
some/DT
people/NNS
believe/VBP
,/,
can/MD
add/VB
to/TO
volatility/NN
./.
Investors/NNS
believe/VBP
they/PRP
can/MD
can/MD
rely/VB
on/IN
such/JJ
derivative/JJ
securities/NNS
to/TO
get/VB
in/IN
and/CC
out/IN
of/IN
the/DT
stock/NN
market/NN
without/IN
actually/RB
selling/VBG
any/DT
stocks/NNS
;/:
that/DT
is/VBZ
,/,
a/DT
way/NN
of/IN
staying/VBG
liquid/JJ
even/RB
when/WRB
they/PRP
own/VBP
stocks/NNS
./.
These/DT
and/CC
other/JJ
modern/JJ
trading/NN
methods/NNS
``/``
tend/VBP
to/TO
promote/VB
dramatic/JJ
shifts/NNS
in/IN
assets/NNS
,/,
''/''
says/VBZ
George/NNP
Douglas/NNP
,/,
first/JJ
vice/NN
president/NN
at/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc/NNP
./.
``/``
It/PRP
's/VBZ
the/DT
idea/NN
that/IN
what/WP
goes/VBZ
in/IN
easy/RB
can/MD
come/VB
out/IN
easy/RB
''/''
--/:
so/IN
that/IN
bouts/NNS
of/IN
higher/JJR
volatility/NN
get/VBP
built/VBN
into/IN
the/DT
stock/NN
market/NN
./.
One/CD
new/JJ
investment/NN
style/NN
called/VBN
``/``
asset/NN
allocation/NN
''/''
shifts/VBZ
portfolio/NN
weightings/NNS
between/IN
stocks/NNS
,/,
bonds/NNS
and/CC
cash/NN
when/WRB
computer/NN
models/NNS
say/VBP
one/CD
is/VBZ
more/RBR
attractive/JJ
./.
For/IN
instance/NN
,/,
First/NNP
Quadrant/NNP
Corp./NNP
,/,
an/DT
asset/NN
allocator/NN
based/VBN
in/IN
Morristown/NNP
,/,
N.J./NNP
,/,
said/VBD
it/PRP
quickly/RB
boosted/VBD
stock/NN
positions/NNS
in/IN
its/PRP$
``/``
aggressive/JJ
''/''
accounts/NNS
to/TO
75/CD
%/NN
from/IN
55/CD
%/NN
to/TO
take/VB
advantage/NN
of/IN
plunging/VBG
prices/NNS
Friday/NNP
./.
It/PRP
added/VBD
another/DT
5/CD
%/NN
Monday/NNP
before/IN
stocks/NNS
rallied/VBD
./.
When/WRB
they/PRP
did/VBD
,/,
the/DT
firm/NN
reduced/VBD
those/DT

stock/NN
holdings/NNS
to/TO
about/IN
70/CD
%/NN
./.
A/DT
classic/JJ
example/NN
of/IN
institutions/NNS
'/POS
hunger/NN
for/IN
liquidity/NN
is/VBZ
portfolio/NN
insurance/NN
,/,
now/RB
widely/RB
discredited/VBN
./.
Before/IN
the/DT
1987/CD
crash/NN
,/,
an/DT
estimated/VBN
$/$
60/CD
billion/CD
in/IN
institutional/JJ
money/NN
was/VBD
managed/VBN
under/IN
this/DT
hedging/VBG
technique/NN
./.
The/DT
idea/NN
was/VBD
to/TO
``/``
insure/VB
''/''
the/DT
value/NN
of/IN
a/DT
portfolio/NN
by/IN
selling/VBG
futures/NNS
when/WRB
stock/NN
prices/NNS
dropped/VBD
--/:
eliminating/VBG
the/DT
need/NN
to/TO
sell/VB
the/DT
stocks/NNS
themselves/PRP
./.
But/CC
in/IN
October/NNP
1987/CD
,/,
when/WRB
portfolio/NN
insurers/NNS
rushed/VBD
to/TO
sell/VB
at/IN
the/DT
same/JJ
time/NN
,/,
they/PRP
overwhelmed/VBD
both/PDT
the/DT
stock/NN
and/CC
futures/NNS
markets/NNS
./.
Yet/RB
even/RB
today/NN
,/,
institutions/NNS
are/VBP
quietly/RB
practicing/VBG
forms/NNS
of/IN
portfolio/NN
insurance/NN
by/IN
nervously/RB
rushing/VBG
to/TO
and/CC
fro/RB
in/IN
the/DT
markets/NNS
./.
Others/NNS
are/VBP
doing/VBG
``/``
index/NN
arbitrage/NN
''/''
a/DT
strategy/NN
of/IN
taking/VBG
advantage/NN
of/IN
price/NN
discrepancies/NNS
between/IN
stocks/NNS
and/CC
futures/NNS
./.
Unlike/IN
traditional/JJ
buy-and-hold/JJ
strategies/NNS
,/,
all/DT
of/IN
the/DT
above/JJ
require/VBP
that/IN
market/NN
makers/NNS
be/VB
on/IN
hand/NN
to/TO
provide/VB
liquidity/NN
by/IN
buying/VBG
and/CC
selling/VBG
stocks/NNS
in/IN
a/DT
crunch/NN
./.
But/CC
institutions/NNS
say/VBP
Wall/NNP
Street/NNP
brokerage/NN
firms/NNS
are/VBP
less/RBR
willing/JJ
to/TO
make/VB
markets/NNS
./.
Brokers/NNS
do/VBP
n't/RB
deny/VB
that/IN
./.
Wall/NNP
Street/NNP
traders/NNS
say/VBP
that/IN
,/,
with/IN
institutional/JJ
brokerage/NN
commissions/NNS
far/RB
lower/JJR
than/IN
in/IN
the/DT
1970s/CD
,/,
securities/NNS
firms/NNS
ca/MD
n't/RB
afford/VB
to/TO
take/VB
the/DT
risk/NN
of/IN
buying/VBG
too/RB
much/JJ
stock/NN
./.
``/``
I/PRP
think/VBP
everyone/NN
's/VBZ
a/DT
little/RB
more/RBR
leery/JJ
,/,
''/''
says/VBZ
Jack/NNP
Baker/NNP
,/,
head/NN
of/IN
equity/NN
trading/NN
at/IN
Shearon/NNP
Lehman/NNP
Hutton/NNP
Inc/NNP
./.
``/``
The/DT
institutions/NNS
have/VBP
driven/VBN
(/(
commission/NN
the/DT
point/NN
where/WRB
it/PRP
makes/VBZ
no/DT
sense/NN
to/TO
commit/VB
capital/NN
,/,
''/''
says/VBZ
Tom/NNP
Gallagher/NNP
,/,
senior/JJ
executive/NN
vice/NN
president/NN
in/IN
charge/NN
of/IN
institutional/JJ
trading/NN
at/IN
Oppenheimer/NNP
&/CC
Co/NNP
./.
``/``
Why/WRB
should/MD
I/PRP
risk/VB
money/NN
for/IN
a/DT
guy/NN
for/IN
who/WP
's/VBZ
paying/VBG
me/PRP
five/CD
cents/NNS
a/DT
dance/NN
?/.
All/DT
you/PRP
get/VBP
is/VBZ
risk/NN
./.
''/''
Lack/NN
of/IN
liquidity/NN
can/MD
also/RB
result/VB
from/IN
exchange/NN
``/``
reforms/NNS
./.
''/''
Many/JJ
traders/NNS
say/VBP
that/IN
``/``
circuit/NN
breakers/NNS
''/''
put/VBN
in/IN
place/NN
to/TO
damp/VB
volatility/NN
after/IN
the/DT
1987/CD
crash/NN
actually/RB
added/VBD
to/TO
volatility/NN
when/WRB
the/DT
stock/NN
market/NN
plunged/VBD
Friday/NNP
./.
The/DT
circuit/NN
breakers/NNS
caused/VBD
a/DT
30-minute/JJ
shutdown/NN
in/IN
trading/NN
in/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
500-stock/JJ
index/NN
futures/NNS
contract/NN
as/IN
the/DT
markets/NNS
were/VBD
falling/VBG
./.
``/``
With/IN
the/DT
futures-trading/JJ
halt/NN
,/,
you/PRP
could/MD
only/RB
sell/VB
stocks/NNS
''/''
to/TO
cut/VB
exposure/NN
to/TO
the/DT
market/NN
,/,
says/VBZ
a/DT
money/NN
manager/NN
./.
``/``
It/PRP
was/VBD
scary/JJ
to/TO
people/NNS
thinking/VBG
that/IN
they/PRP
could/MD
n't/RB
get/VB
their/PRP$
trades/NNS
off/IN
./.
''/''
``/``
It/PRP
was/VBD
like/IN
they/PRP
put/VBD
you/PRP
in/IN
a/DT
room/NN
with/IN
a/DT
gorilla/NN
and/CC
told/VBD
you/PRP
there/EX
were/VBD
three/CD
doors/NNS
to/TO
exit/VB
,/,
''/''
said/VBD
one/CD
Chicago-based/JJ
futures/NNS
trader/NN
./.
``/``
Then/RB
they/PRP
said/VBD
,/,
`/``
By/IN
the/DT
way/NN
,/,
two/CD
of/IN
the/DT
doors/NNS
are/VBP
locked/VBN
./.
'/''
''/''
The/DT
takeover/NN
mania/NN
also/RB
adds/VBZ
to/TO
volatility/NN
./.
UAL/NNP
Corp./NNP
is/VBZ
a/DT
good/JJ
example/NN
./.
Valued/VBN
as/IN
a/DT
buy-out/NN
target/NN
,/,
the/DT
airline/NN
stock/NN
was/VBD
trading/VBG
at/IN
nearly/RB
$/$
280/CD
a/DT
share/NN
./.
When/WRB
the/DT
deal/NN
ran/VBD
into/IN
trouble/NN
,/,
the/DT
stock/NN
tumbled/VBD
;/:
it/PRP
closed/VBD
at/IN
$/$
198/CD
yesterday/NN
./.
Presumably/RB
,/,
UAL/NNP
is/VBZ
now/RB
trading/VBG
closer/JJR
to/TO
its/PRP$
value/NN
based/VBN
on/IN
earnings/NNS
./.
By/IN
contrast/NN
,/,
traditional/JJ
buy-and-hold/JJ
investors/NNS
are/VBP
unlikely/JJ
to/TO
generate/VB
sudden/JJ
price/NN
moves/NNS
./.
Scott/NNP
Black/NNP
,/,
a/DT
value-oriented/JJ
money/NN
manager/NN
who/WP
heads/VBZ
Delphi/NNP
Management/NNP
Inc./NNP
,/,
points/VBZ
out/IN
that/IN
for/IN
those/DT
who/WP
invest/VBP
on/IN
fundamentals/NNS
,/,
``/``
the/DT
value/NN
of/IN
a/DT
stock/NN
from/IN
day/NN
to/TO
day/NN
does/VBZ
n't/RB
change/VB
all/RB
that/RB
much/RB
./.
''/''
Some/DT
experts/NNS
say/VBP
markets/NNS
are/VBP
n't/RB
as/RB
volatile/JJ
as/IN
widely/RB
assumed/VBN
./.
Hans/NNP
Stoll/NNP
,/,
finance/NN
professor/NN
at/IN
Vanderbilt/NNP
University/NNP
,/,
says/VBZ
the/DT
current/JJ
volatility/NN
in/IN
U.S./NNP
markets/NNS
pales/VBZ
in/IN
comparison/NN
to/TO
the/DT
1930s/CD
,/,
decades/NNS
before/IN
derivative/JJ
instruments/NNS
such/JJ
as/IN
options/NNS
and/CC
futures/NNS
were/VBD
introduced/VBN
./.
``/``
I/PRP
just/RB
ca/MD
n't/RB
believe/VB
that/IN
the/DT
innovations/NNS
in/IN
the/DT
financial/JJ
market/NN
are/VBP
causing/VBG
any/DT
of/IN
this/DT
volatility/NN
,/,
''/''
he/PRP
says/VBZ
./.
And/CC
Robert/NNP
D./NNP
Arnott/NNP
,/,
president/NN
of/IN
asset/NN
allocator/NN
First/NNP
Quadrant/NNP
,/,
notes/VBZ
that/IN
before/IN
Friday/NNP
's/POS
tailspin/NN
,/,
daily/JJ
volatility/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
in/IN
recent/JJ
weeks/NNS
had/VBD
reached/VBN
``/``
historically/RB
low/JJ
levels/NNS
./.
''/''
Some/DT
people/NNS
tend/VBP
to/TO
ignore/VB
that/IN
a/DT
50-point/JJ
move/NN
is/VBZ
less/JJR
in/IN
percentage/NN
terms/NNS
than/IN
it/PRP
was/VBD
when/WRB
the/DT
stock/NN
market/NN
was/VBD
lower/JJR
./.
John/NNP
J./NNP
Phelan/NNP
Jr./NNP
,/,
chairman/NN
of/IN
the/DT
Big/NNP
Board/NNP
,/,
asserts/VBZ
that/IN
``/``
1988/CD
and/CC
1989/CD
have/VBP
been/VBN
two/CD
of/IN
the/DT
least/JJS
volatile/JJ
years/NNS
in/IN
the/DT
last/JJ
30/CD
or/CC
40/CD
years/NNS
./.
''/''
But/CC
the/DT
low/JJ
average/NN
volatility/NN
Mr./NNP
Phelan/NNP
is/VBZ
talking/VBG
about/IN
is/VBZ
n't/RB
any/DT
comfort/NN
in/IN
a/DT
period/NN
of/IN
rapid/JJ
stock-market/NN
moves/NNS
like/IN
the/DT
past/NN
week/NN
./.
In/IN
addition/NN
,/,
Sanford/NNP
Grossman/NNP
,/,
a/DT
Wharton/NNP
School/NNP
finance/NN
professor/NN
,/,
says/VBZ
volatile/JJ
jumps/NNS
in/IN
stock/NN
prices/NNS
will/MD
continue/VB
as/RB
long/RB
as/IN
liquidity/NN
falls/VBZ
short/RB
of/IN
the/DT
voracious/JJ
demands/NNS
of/IN
institutions/NNS
``/``
who/WP
can/MD
go/VB
out/IN
and/CC
say/VB
`/``
I/PRP
have/VBP
a/DT
billion/CD
dollars/NNS
of/IN
stocks/NNS
to/TO
sell/VB
./.
'/''
''/''
Some/DT
people/NNS
think/VBP
the/DT
search/NN
for/IN
liquidity/NN
is/VBZ
fruitless/JJ
./.
In/IN
1936/CD
,/,
John/NNP
Maynard/NNP
Keynes/NNP
wrote/VBD
that/IN
``/``
of/IN
the/DT
maxims/NNS
of/IN
orthodox/JJ
finance/NN
none/NN
,/,
surely/RB
,/,
is/VBZ
more/RBR
antisocial/JJ
than/IN
the/DT
fetish/NN
of/IN
liquidity/NN
./.
''/''
It/PRP
leads/VBZ
investors/NNS
to/TO
focus/VB
on/IN
short-term/JJ
price/NN
movements/NNS
--/:
``/``
a/DT
game/NN
of/IN
musical/JJ
chairs/NNS
,/,
''/''
he/PRP
called/VBD
it/PRP
--/:
rather/RB
than/IN
on/IN
long-term/JJ
fundamental/JJ
valuation/NN
./.
James/NNP
A./NNP
White/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
The/DT
National/NNP
Aeronautics/NNP
and/CC
Space/NNP
Administration/NNP
said/VBD
a/DT
computer/NN
virus/NN
has/VBZ
infected/VBN
one/CD
of/IN
its/PRP$
networks/NNS
and/CC
is/VBZ
spreading/VBG
anti-nuclear/JJ
messages/NNS
related/VBN
to/TO
its/PRP$
Galileo/NNP
space/NN
probe/NN
,/,
which/WDT
is/VBZ
to/TO
be/VB
launched/VBN
today/NN
./.
Charles/NNP
Redmond/NNP
,/,
a/DT
NASA/NNP
spokesman/NN
,/,
said/VBD
the/DT
agency/NN
discovered/VBD
the/DT
virus/NN
on/IN
Monday/NNP
on/IN
the/DT
collection/NN
of/IN
computer/NN
networks/NNS
collectively/RB
called/VBN
Internet/NN
and/CC
expected/VBD
100/CD
university/NN
centers/NNS
to/TO
be/VB
infected/VBN
by/IN
today/NN
./.
Although/IN
the/DT
network/NN
is/VBZ
n't/RB
connected/VBN
to/TO
the/DT
computer/NN
systems/NNS
that/WDT
operate/VBP
either/DT
Galileo/NNP
or/CC
the/DT
shuttle/NN
,/,
part/NN
of/IN
the/DT
network/NN
will/MD
carry/VB
analyses/NNS
of/IN
Galileo/NNP
data/NNS
once/IN
the/DT
craft/NN
gets/VBZ
spaceborn/JJ
./.
Mr./NNP
Redmond/NNP
said/VBD
the/DT
intruder/NN
had/VBD
n't/RB
yet/RB
done/VBN
any/DT
harm/NN
but/CC
the/DT
agency/NN
feared/VBD
``/``
garbage/NN
data/NNS
could/MD
be/VB
substituted/VBN
for/IN
real/JJ
data/NNS
./.
''/''
He/PRP
estimated/VBD
it/PRP
could/MD
take/VB
a/DT
day/NN
for/IN
a/DT
computer/NN
security/NN
manager/NN
to/TO
expunge/VB
the/DT
virus/NN
from/IN
a/DT
computer/NN
system/NN
./.
The/DT
intruder/NN
,/,
among/IN
the/DT
broadest/JJS
yet/RB
to/TO
hit/VB
a/DT
research/NN
network/NN
,/,
appeared/VBD
to/TO
affect/VB
only/JJ
Digital/NNP
Equipment/NNP
Corp./NNP
hardware/NN
that/WDT
uses/VBZ
Digital/NNP
's/POS
VAX\/VMS/NNP
operating/VBG
system/NN
./.
It/PRP
is/VBZ
unrelated/JJ
to/TO
the/DT
much-publicized/JJ
virus/NN
that/IN
last/JJ
year/NN
infected/VBD
Arpanet/NNP
,/,
a/DT
much/RB
larger/JJR
network/NN
used/VBN
by/IN
researchers/NNS
at/IN
universities/NNS
,/,
laboratories/NNS
and/CC
government/NN
agencies/NNS
around/IN
the/DT
world/NN
./.
In/IN
the/DT
lingo/NN
of/IN
computer/NN
security/NN
,/,
the/DT
NASA/NNP
intruder/NN
is/VBZ
technically/RB
a/DT
computer/NN
worm/NN
,/,
Mr./NNP
Redmond/NNP
said/VBD
./.
A/DT
worm/NN
resides/VBZ
in/IN
the/DT
operating/VBG
system/NN
of/IN
a/DT
computer/NN
and/CC
spreads/VBZ
by/IN
boring/VBG
into/IN
other/JJ
computers/NNS
contacted/VBN
through/IN
networks/NNS
./.
The/DT
Galileo/NNP
worm/NN
apparently/RB
was/VBD
hatched/VBN
on/IN
a/DT
computer/NN
in/IN
France/NNP
hooked/VBD
up/IN
to/TO
NASA/NNP
's/POS
Space/NNP
Physics/NNP
Analysis/NNP
Network/NNP
,/,
Mr./NNP
Redmond/NNP
said/VBD
./.
NASA/NNP
said/VBD
the/DT
Galileo/NNP
worm/NN
had/VBD
n't/RB
affected/VBN
its/PRP$
computers/NNS
or/CC
the/DT
computers/NNS
of/IN
other/JJ
government/NN
agencies/NNS
because/IN
they/PRP
had/VBD
modified/VBN
their/PRP$
systems/NNS
to/TO
reject/VB
worms/NNS
./.
But/CC
Mr./NNP
Redmond/NNP
said/VBD
the/DT
worm/NN
hit/VBD
universities/NNS
that/WDT
had/VBD
n't/RB
elected/VBN
to/TO
make/VB
the/DT
changes/NNS
./.
Michael/NNP
Alexander/NNP
,/,
a/DT
senior/JJ
editor/NN
at/IN
Computerworld/NNP
,/,
a/DT
trade/NN
publication/NN
,/,
said/VBD
he/PRP
was/VBD
told/VBN
that/IN
the/DT
worm/NN
gets/VBZ
into/IN
a/DT
computer/NN
center/NN
by/IN
looking/VBG
for/IN
obvious/JJ
passwords/NNS
--/:
such/JJ
as/IN
ones/NNS
that/WDT
are/VBP
the/DT
same/JJ
as/IN
the/DT
user/NN
's/POS
name/NN
./.
If/IN
it/PRP
finds/VBZ
one/CD
and/CC
gets/VBZ
into/IN
the/DT
system/NN
,/,
it/PRP
will/MD
display/VB
a/DT
screen/NN
when/WRB
a/DT
user/NN
logs/VBZ
on/IN
that/DT
says/VBZ
,/,
``/``
Worms/NNPS
Against/NNP
Nuclear/NNP
Killers/NNPS
.../:
./.
You/PRP
talk/VBP
of/IN
times/NNS
of/IN
peace/NN
for/IN
all/DT
,/,
and/CC
then/RB
prepare/VBP
for/IN
war/NN
./.
''/''
In/IN
addition/NN
,/,
Mr./NNP
Alexander/NNP
said/VBD
,/,
the/DT
worm/NN
sends/VBZ
strange/JJ
messages/NNS
to/TO
other/JJ
machines/NNS
at/IN
the/DT
center/NN
--/:
such/JJ
as/IN
,/,
``/``
George/NNP
Orwell/NNP
was/VBD
an/DT
optimist/NN
,/,
''/''
or/CC
``/``
Do/VB
n't/RB
feed/VB
the/DT
bats/NNS
tonight/RB
./.
''/''
The/DT
worm/NN
also/RB
looks/VBZ
for/IN
elementary/JJ
passwords/NNS
that/WDT
confer/VBP
more/JJR
privileges/NNS
on/IN
the/DT
user/NN
./.
The/DT
passwords/NNS
are/VBP
included/VBN
in/IN
the/DT
system/NN
software/NN
when/WRB
it/PRP
is/VBZ
installed/VBN
but/CC
are/VBP
supposed/VBN
to/TO
be/VB
replaced/VBN
as/RB
soon/RB
as/IN
the/DT
system/NN
is/VBZ
up/IN
and/CC
running/VBG
./.
If/IN
it/PRP
finds/VBZ
one/CD
of/IN
those/DT
passwords/NNS
,/,
Mr./NNP
Alexander/NNP
said/VBD
,/,
the/DT
worm/NN
will/MD
do/VB
such/JJ
things/NNS
as/IN
change/NN
users/NNS
'/POS
passwords/NNS
to/TO
a/DT
series/NN
of/IN
random/JJ
numbers/NNS
,/,
preventing/VBG
them/PRP
from/IN
signing/VBG
on/IN
to/TO
the/DT
network/NN
./.
NASA/NNP
estimated/VBD
that/IN
,/,
on/IN
Monday/NNP
,/,
about/IN
four/CD
computer/NN
centers/NNS
were/VBD
affected/VBN
./.
Yesterday/NN
,/,
the/DT
number/NN
grew/VBD
to/TO
40/CD
;/:
today/NN
the/DT
number/NN
is/VBZ
expected/VBN
to/TO
grow/VB
to/TO
100/CD
./.
NASA/NNP
said/VBD
it/PRP
will/MD
take/VB
about/IN
a/DT
week/NN
before/IN
it/PRP
knows/VBZ
exactly/RB
how/WRB
many/JJ
centers/NNS
of/IN
the/DT
6,000/CD
connected/VBN
to/TO
Internet/NNP
were/VBD
affected/VBN
and/CC
the/DT
extent/NN
of/IN
the/DT
damage/NN
,/,
if/IN
any/DT
./.
Anti-nuclear/JJ
activists/NNS
have/VBP
protested/VBN
the/DT
launch/NN
of/IN
the/DT
Galileo/NNP
space/NN
probe/NN
to/TO
Jupiter/NNP
because/IN
it/PRP
uses/VBZ
plutonium/NN
to/TO
generate/VB
the/DT
electricity/NN
needed/VBN
to/TO
run/VB
the/DT
craft/NN
./.
Activists/NNS
fear/VBP
that/IN
if/IN
the/DT
shuttle/NN
carrying/VBG
Galileo/NNP
into/IN
orbit/NN
should/MD
explode/VB
,/,
or/CC
if/IN
Galileo/NNP
itself/PRP
crashes/VBZ
into/IN
the/DT
Earth/NN
during/IN
the/DT
two/CD
times/NNS
it/PRP
flies/VBZ
close/RB
to/TO
the/DT
planet/NN
,/,
fatal/JJ
levels/NNS
of/IN
plutonium/NN
would/MD
be/VB
released/VBN
into/IN
the/DT
atmosphere/NN
./.
So/IN
far/RB
Galileo/NNP
has/VBZ
been/VBN
delayed/VBN
twice/RB
,/,
once/RB
because/IN
of/IN
a/DT
computer/NN
malfunction/NN
connected/VBN
with/IN
a/DT
space-shuttle/NN
engine/NN
,/,
and/CC
yesterday/NN
because/IN
of/IN
the/DT
weather/NN
./.
NASA/NNP
said/VBD
the/DT
Galileo/NNP
worm/NN
had/VBD
nothing/NN
to/TO
do/VB
with/IN
either/DT
delay/NN
./.
Mr./NNP
Alexander/NNP
of/IN
Computerworld/NNP
said/VBD
hackers/NNS
have/VBP
gone/VBN
after/IN
SPAN/NNP
before/IN
./.
He/PRP
said/VBD
the/DT
Chaos/NNP
Computer/NNP
Club/NNP
,/,
of/IN
West/NNP
Germany/NNP
,/,
once/RB
managed/VBD
to/TO
invade/VB
SPAN/NNP
and/CC
do/VB
such/JJ
things/NNS
as/IN
change/VB
the/DT
value/NN
of/IN
pi/NN
,/,
messing/VBG
up/IN
some/DT
calculations/NNS
./.
It/PRP
is/VBZ
now/RB
a/DT
commonplace/NN
that/IN
prosecutors/NNS
are/VBP
bringing/VBG
criminal/JJ
indictments/NNS
in/IN
cases/NNS
where/WRB
until/IN
a/DT
few/JJ
years/NNS
ago/IN
only/RB
a/DT
civil/JJ
action/NN
at/IN
most/RBS
would/MD
have/VB
been/VBN
brought/VBN
./.
Yet/CC
it/PRP
is/VBZ
also/RB
axiomatic/JJ
that/IN
the/DT
power/NN
to/TO
create/VB
new/JJ
crimes/NNS
belongs/VBZ
only/RB
to/TO
the/DT
legislature/NN
,/,
and/CC
not/RB
to/TO
courts/NNS
./.
Beginning/VBG
in/IN
the/DT
early/JJ
19th/JJ
century/NN
,/,
with/IN
U.S./NNP
v./CC
Hudson/NNP
and/CC
Goodwin/NNP
,/,
the/DT
Supreme/NNP
Court/NNP
has/VBZ
repeatedly/RB
held/VBN
that/IN
a/DT
judicial/JJ
power/NN
to/TO
declare/VB
conduct/NN
to/TO
be/VB
against/IN
the/DT
public/JJ
interest/NN
and/CC
hence/RB
criminal/JJ
,/,
while/IN
well/RB
established/VBN
in/IN
British/JJ
law/NN
,/,
would/MD
usurp/VB
legislative/JJ
authority/NN
under/IN
the/DT
doctrine/NN
of/IN
separation/NN
of/IN
powers/NNS
./.
That/DT
's/VBZ
the/DT
conventional/JJ
theory/NN
anyway/RB
./.
In/IN
practice/NN
,/,
however/RB
,/,
the/DT
line/NN
between/IN
interpretation/NN
and/CC
redefinition/NN
of/IN
the/DT
criminal/JJ
law/NN
long/RB
ago/RB
began/VBD
to/TO
blur/VB
./.
In/IN
particular/JJ
,/,
a/DT
common/JJ
law/NN
of/IN
white-collar/JJ
crime/NN
has/VBZ
developed/VBN
with/IN
surprising/JJ
rapidity/NN
over/IN
the/DT
past/JJ
decade/NN
./.
For/IN
example/NN
,/,
although/IN
insider/NN
trading/NN
has/VBZ
long/RB
been/VBN
criminal/JJ
,/,
it/PRP
has/VBZ
never/RB
been/VBN
statutorily/RB
defined/VBN
./.
In/IN
1983/CD
,/,
the/DT
Supreme/NNP
Court/NNP
tried/VBD
to/TO
supply/VB
a/DT
workable/JJ
definition/NN
in/IN
the/DT
Dirks/NNS
v./CC
SEC/NNP
decision/NN
,/,
which/WDT
found/VBD
that/DT
liability/NN
depended/VBD
on/IN
whether/IN
the/DT
tipper/NN
had/VBD
breached/VBN
his/PRP$
fiduciary/JJ
duty/NN
to/TO
the/DT
corporation/NN
in/IN
order/NN
to/TO
obtain/VB
``/``
some/DT
personal/JJ
gain/NN
''/''
and/CC
whether/IN
the/DT
tippee/NN
knew/VBD
or/CC
recklessly/RB
disregarded/VBD
this/DT
fact/NN
./.
Gradually/RB
,/,
however/RB
,/,
lower/JJR
courts/NNS
and/CC
prosecutors/NNS
have/VBP
pushed/VBN
this/DT
definition/NN
to/TO
its/PRP$
breaking/NN
point/NN
./.
Consider/VB
the/DT
facts/NNS
underlying/VBG
the/DT
1989/CD
conviction/NN
of/IN
Robert/NNP
Chestman/NNP
./.
Prior/RB
to/TO
a/DT
tender/NN
offer/NN
by/IN
A&P/NNP
for/IN
Waldbaum/NNP
Inc./NNP
in/IN
1986/CD
,/,
the/DT
founder/NN
of/IN
the/DT
Waldbaum/NNP
's/POS
supermarket/NN
chain/NN
called/VBD
an/DT
elderly/JJ
relative/NN
to/TO
tell/VB
her/PRP
to/TO
assemble/VB
her/PRP$
stock/NN
certificates/NNS
for/IN
delivery/NN
./.
She/PRP
called/VBD
her/PRP$
daughter/NN
to/TO
take/VB
her/PRP
to/TO
the/DT
bank/NN
,/,
who/WP
,/,
in/IN
turn/NN
,/,
persuaded/VBD
her/PRP
husband/NN
,/,
a/DT
Mr./NNP
Loeb/NNP
,/,
to/TO
run/VB
this/DT
errand/NN
./.
Hearing/VBG
of/IN
this/DT
information/NN
,/,
the/DT
husband/NN
discussed/VBD
it/PRP
with/IN
his/PRP$
broker/NN
,/,
Mr./NNP
Chestman/NNP
,/,
and/CC
Mr./NNP
Chestman/NNP
then/RB
bought/VBD
for/IN
his/PRP$
own/JJ
account/NN
and/CC
other/JJ
clients/NNS
./.
Basically/RB
,/,
Mr./NNP
Chestman/NNP
was/VBD
a/DT
fourth-level/JJ
tippee/NN
./.
Did/VBD
Mr./NNP
Loeb/NNP
,/,
his/PRP$
tipper/NN
,/,
breach/VB
a/DT
fiduciary/JJ
duty/NN
whom/WP
)/)
?/.
Did/VBD
Mr./NNP
Loeb/NNP
seek/VB
personal/JJ
gain/NN
)/)
?/.
Or/CC
did/VBD
Mr./NNP
Chestman/NNP
only/RB
hear/VB
a/DT
market/NN
rumor/NN
which/WDT
one/NN
may/MD
lawfully/RB
trade/VB
upon/IN
)/)
?/.
The/DT
line/NN
seems/VBZ
awfully/RB
thin/JJ
for/IN
criminal-law/NN
purposes/NNS
./.
A/DT
second/JJ
illustration/NN
is/VBZ
supplied/VBN
by/IN
the/DT
recent/JJ
guilty/JJ
plea/NN
entered/VBN
by/IN
Robert/NNP
Freeman/NNP
,/,
formerly/RB
head/NN
of/IN
arbitrage/NN
at/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
./.
Essentially/RB
,/,
Mr./NNP
Freeman/NNP
had/VBD
invested/VBN
heavily/RB
in/IN
the/DT
Beatrice/NNP
leveraged/JJ
buy-out/NN
,/,
when/WRB
he/PRP
was/VBD
told/VBN
by/IN
another/DT
prominent/JJ
trader/NN
,/,
Bernard/NNP
``/``
Bunny/NNP
''/''
Lasker/NNP
,/,
that/IN
the/DT
deal/NN
was/VBD
in/IN
trouble/NN
./.
After/IN
placing/VBG
orders/NNS
to/TO
sell/VB
,/,
Mr./NNP
Freeman/NNP
called/VBD
Martin/NNP
Siegel/NNP
,/,
an/DT
investment/NN
banker/NN
at/IN
Kidder/NNP
,/,
Peabody/NNP
&/CC
Co./NNP
,/,
who/WP
was/VBD
advising/VBG
on/IN
the/DT
deal/NN
,/,
to/TO
confirm/VB
these/DT
rumors/NNS
./.
Mr./NNP
Siegel/NNP
asked/VBD
Mr./NNP
Freeman/NNP
who/WP
his/PRP$
source/NN
was/VBD
and/CC
,/,
on/IN
hearing/NN
that/IN
it/PRP
was/VBD
Bunny/NNP
Lasker/NNP
,/,
responded/VBD
:/:
``/``
Well/UH
,/,
your/PRP$
bunny/NN
has/VBZ
a/DT
good/JJ
nose/NN
./.
''/''
The/DT
illegal/JJ
``/``
tip/NN
''/''
of/IN
the/DT
bunny/NN
's/POS
good/JJ
nose/NN
was/VBD
then/RB
largely/RB
a/DT
confirmation/NN
of/IN
rumors/NNS
already/RB
known/VBN
to/TO
many/JJ
in/IN
the/DT
market/NN
./.
Had/VBD
the/DT
case/NN
gone/VBN
to/TO
trial/NN
the/DT
same/JJ
issues/NNS
would/MD
have/VB
surfaced/VBN
:/:
Was/VBD
there/RB
a/DT
fiduciary/JJ
breach/NN
in/IN
order/NN
to/TO
obtain/VB
personal/JJ
gain/NN
?/.
Did/VBD
Mr./NNP
Freeman/NNP
have/VB
notice/VB
of/IN
this/DT
?/.
Finally/RB
,/,
was/VBD
the/DT
information/NN
material/NN
?/.
Yet/RB
,/,
all/PDT
these/DT
issues/NNS
are/VBP
subsidiary/JJ
to/TO
a/DT
more/JJR
central/JJ
issue/NN
:/:
Who/WP
is/VBZ
and/CC
who/WP
should/MD
be/VB
making/VBG
the/DT
criminal/JJ
law/NN
here/RB
?/.
It/PRP
is/VBZ
not/RB
my/PRP$
contention/NN
that/IN
either/DT
Mr./NNP
Chestman/NNP
or/CC
Mr./NNP
Freeman/NNP
was/VBD
an/DT
innocent/JJ
victim/NN
of/IN
prosecutorial/JJ
overzealousness/NN
./.
Arguably/RB
,/,
both/DT
were/VBD
on/IN
notice/NN
that/IN
their/PRP$
behavior/NN
was/VBD
at/IN
least/JJS
risky/JJ
./.
But/CC
even/RB
if/IN
they/PRP
behaved/VBD
recklessly/RB
,/,
reasons/NNS
still/RB
exist/VBP
to/TO
fear/VB
and/CC
resist/VB
this/DT
steady/JJ
process/NN
of/IN
case-by-case/JJ
judicial/JJ
extension/NN
of/IN
the/DT
law/NN
of/IN
insider/NN
trading/NN
./.
Courts/NNS
and/CC
legislatures/NNS
make/VBP
decisions/NNS
in/IN
very/JJ
different/JJ
ways/NNS
and/CC
are/VBP
each/DT
susceptible/JJ
to/TO
very/RB
different/JJ
kinds/NNS
of/IN
errors/NNS
./.
After-the-fact/JJ
judicial/JJ
examination/NN
of/IN
an/DT
actor/NN
's/POS
conduct/NN
has/VBZ
always/RB
been/VBN
the/DT
common/JJ
law/NN
's/POS
method/NN
./.
When/WRB
only/RB
civil/JJ
liability/NN
is/VBZ
involved/VBN
,/,
this/DT
method/NN
has/VBZ
the/DT
undeniable/JJ
strengths/NNS
of/IN
factual/JJ
specificity/NN
and/CC
avoidance/NN
of/IN
overgeneralization/NN
./.
Still/RB
,/,
case-by-case/JJ
retrospective/NN
decision/NN
making/NN
of/IN
this/DT
sort/NN
is/VBZ
vulnerable/JJ
to/TO
the/DT
tunnel/NN
vision/NN
caused/VBN
by/IN
a/DT
fixation/NN
on/IN
ad/FW
hoc/FW
sleazy/JJ
examples/NNS
./.
When/WRB
a/DT
court/NN
decides/VBZ
that/IN
a/DT
particular/JJ
actor/NN
's/POS
conduct/NN
was/VBD
culpable/JJ
and/CC
so/RB
extends/VBZ
the/DT
definition/NN
of/IN
insider/NN
trading/NN
to/TO
reach/VB
this/DT
conduct/NN
,/,
it/PRP
does/VBZ
not/RB
see/VB
the/DT
potentially/RB
enormous/JJ
number/NN
of/IN
other/JJ
cases/NNS
that/WDT
will/MD
be/VB
covered/VBN
by/IN
the/DT
expanded/VBN
rule/NN
./.
Thus/RB
,/,
a/DT
court/NN
is/VBZ
poorly/RB
positioned/VBN
to/TO
make/VB
judgments/NNS
about/IN
the/DT
social/JJ
utility/NN
of/IN
the/DT
expanded/VBN
rule/NN
./.
For/IN
example/NN
,/,
in/IN
focusing/VBG
on/IN
Mr./NNP
Freeman/NNP
's/POS
attempt/NN
to/TO
gain/VB
nonpublic/JJ
information/NN
about/IN
a/DT
deal/NN
's/POS
collapse/NN
,/,
one/NN
does/VBZ
not/RB
naturally/RB
think/VB
about/IN
the/DT
reverse/JJ
side/NN
of/IN
the/DT
coin/NN
:/:
What/WP
if/IN
the/DT
rumor/NN
had/VBD
been/VBN
false/JJ
?/.
Can/MD
a/DT
security/NN
analyst/NN
call/VB
an/DT
investment/NN
banker/NN
to/TO
make/VB
certain/JJ
that/IN
a/DT
seemingly/RB
improbable/JJ
rumor/NN
is/VBZ
in/IN
fact/NN
false/JJ
?/.
In/IN
the/DT
past/NN
,/,
not/RB
only/RB
would/MD
reputable/JJ
professionals/NNS
have/VBP
rushed/VBN
to/TO
check/VB
out/IN
such/JJ
rumors/NNS
with/IN
the/DT
company/NN
,/,
but/CC
companies/NNS
listed/VBN
on/IN
the/DT
major/JJ
stock/NN
exchanges/NNS
were/VBD
encouraged/VBN
by/IN
the/DT
exchanges/NNS
to/TO
respond/VB
openly/RB
to/TO
such/JJ
inquiries/NNS
from/IN
securities/NNS
analysts/NNS
./.
Today/NN
,/,
after/IN
Mr./NNP
Freeman/NNP
's/POS
plea/NN
,/,
there/EX
is/VBZ
an/DT
uncertainty/NN
that/WDT
is/VBZ
both/DT
unfair/JJ
and/CC
inefficient/JJ
./.
In/IN
this/DT
light/NN
,/,
the/DT
comparative/JJ
advantages/NNS
of/IN
legislative/JJ
law-making/NNS
become/VBP
clear/JJ
:/:
(/(
1/LS
it/PRP
acts/VBZ
,/,
the/DT
legislature/NN
typically/RB
will/MD
hear/VB
the/DT
views/NNS
of/IN
representatives/NNS
of/IN
all/PDT
those/DT
affected/VBN
by/IN
its/PRP$
decision/NN
,/,
not/RB
just/RB
the/DT
immediate/JJ
parties/NNS
before/IN
the/DT
court/NN
;/:
and/CC
(/(
2/LS
the/DT
legislature/NN
can/MD
frame/VB
``/``
bright/JJ
line/NN
''/''
standards/NNS
that/WDT
create/VBP
less/JJR
uncertainty/NN
than/IN
the/DT
fact-bound/JJ
decisions/NNS
of/IN
courts/NNS
./.
Although/IN
legislative/JJ
lines/NNS
can/MD
result/VB
in/IN
under-inclusion/NN
which/WDT
explains/VBZ
why/WRB
the/DT
SEC/NNP
has/VBZ
long/RB
resisted/VBN
a/DT
legislative/JJ
definition/NN
of/IN
insider/NN
trading/NN
)/)
,/,
judicial/JJ
lawmaking/NN
inevitably/RB
creates/VBZ
uncertainty/NN
because/IN
of/IN
the/DT
shadowy/JJ
outer/JJ
edges/NNS
and/CC
implications/NNS
of/IN
most/JJS
judicial/JJ
decisions/NNS
./.
At/IN
least/JJS
when/WRB
the/DT
stakes/NNS
are/VBP
high/JJ
,/,
uncertainty/NN
in/IN
turn/NN
results/VBZ
in/IN
overinclusion/NN
,/,
as/IN
individuals/NNS
do/VBP
not/RB
dare/VB
to/TO
approach/VB
an/DT
uncertain/JJ
line/NN
closely/RB
./.
The/DT
federal/JJ
mail/NN
and/CC
wire/NN
fraud/NN
statutes/NNS
provide/VBP
even/RB
better/JJR
illustrations/NNS
of/IN
the/DT
rapid/JJ
evolution/NN
of/IN
a/DT
federal/JJ
common/JJ
law/NN
of/IN
white-collar/JJ
crime/NN
./.
In/IN
1987/CD
,/,
the/DT
Supreme/NNP
Court/NNP
attempted/VBD
in/IN
McNally/RB
v./CC
U.S./NNP
to/TO
halt/VB
the/DT
inexorable/JJ
expansion/NN
of/IN
these/DT
statutes/NNS
by/IN
adopting/VBG
a/DT
rule/NN
of/IN
strict/JJ
construction/NN
for/IN
ambiguous/JJ
criminal/JJ
statues/NNS
./.
Yet/RB
,/,
late/JJ
last/JJ
year/NN
,/,
Congress/NNP
effectively/RB
reversed/VBD
this/DT
decision/NN
by/IN
enacting/VBG
a/DT
one-sentence/JJ
statute/NN
that/WDT
defined/VBD
fraud/NN
to/TO
include/VB
any/DT
scheme/NN
to/TO
deprive/VB
another/DT
of/IN
``/``
the/DT
intangible/JJ
right/NN
of/IN
honest/JJ
services/NNS
./.
''/''
At/IN
a/DT
stroke/NN
,/,
this/DT
may/MD
criminalize/VB
all/DT
fiduciary/JJ
breaches/NNS
all/DT
misrepresentations/NNS
by/IN
an/DT
agent/NN
or/CC
employee/NN
Such/PDT
a/DT
statute/NN
illustrates/VBZ
the/DT
fundamental/JJ
problem/NN
:/:
Congress/NNP
finds/VBZ
it/PRP
is/VBZ
easier/JJR
to/TO
pass/VB
sweepingly/RB
moralistic/JJ
prohibitions/NNS
,/,
which/WDT
the/DT
courts/NNS
must/MD
thereafter/RB
interpret/VB
,/,
than/IN
to/TO
engage/VB
in/IN
the/DT
difficult/JJ
line-drawing/JJ
distinctions/NNS
that/WDT
are/VBP
inherently/RB
its/PRP$
responsibility/NN
./.
We/PRP
are/VBP
confronted/VBN
less/RBR
with/IN
a/DT
judicial/JJ
power/NN
grab/NN
than/IN
with/IN
a/DT
legislative/JJ
giveaway/NN
./.
Predictably/RB
,/,
when/WRB
confronted/VBN
with/IN
morally/RB
dubious/JJ
behavior/NN
,/,
prosecutors/NNS
will/MD
exploit/VB
the/DT
latitude/NN
such/JJ
openended/VBN
statutes/NNS
give/VBP
them/PRP
./.
Over/IN
the/DT
long/JJ
run/NN
,/,
however/RB
,/,
sleazy/JJ
cases/NNS
will/MD
make/VB
bad/JJ
law/NN
./.
Mr./NNP
Coffee/NNP
is/VBZ
a/DT
professor/NN
at/IN
Columbia/NNP
Law/NNP
School/NNP
./.
Corning/NNP
Inc./NNP
posted/VBD
a/DT
38/CD
%/NN
decline/NN
in/IN
third-quarter/NN
net/JJ
income/NN
to/TO
$/$
76.5/CD
million/CD
,/,
or/CC
80/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
123.9/CD
million/CD
,/,
or/CC
$/$
1.37/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
The/DT
year-earlier/JJ
figure/NN
included/VBD
a/DT
one-time/JJ
gain/NN
of/IN
$/$
59.9/CD
million/CD
from/IN
the/DT
sale/NN
of/IN
Corning/NNP
's/POS
stakes/NNS
in/IN
Japanese/JJ
businesses/NNS
./.
Without/IN
the/DT
gain/NN
,/,
operating/VBG
profit/NN
was/VBD
$/$
64/CD
million/CD
,/,
or/CC
71/CD
cents/NNS
a/DT
share/NN
./.
The/DT
telecommunications/NNS
,/,
specialty/NN
glass/NN
,/,
ceramic/JJ
products/NNS
and/CC
laboratory-services/JJ
concern/NN
said/VBD
the/DT
latest/JJS
quarter/NN
included/VBD
a/DT
tax-loss/NN
carry-forward/NN
of/IN
$/$
600,000/CD
./.
A/DT
year/NN
earlier/RBR
,/,
net/NN
included/VBD
a/DT
$/$
700,000/CD
taxlow/NN
carry-forward/NN
./.
Sales/NNS
rose/VBD
14/CD
%/NN
to/TO
$/$
715/CD
million/CD
from/IN
$/$
625.4/CD
million/CD
./.
Corning/NNP
's/POS
chairman/NN
and/CC
chief/NN
executive/NN
officer/NN
,/,
James/NNP
R./NNP
Houghton/NNP
,/,
said/VBD
operating/VBG
performance/NN
continued/VBD
to/TO
be/VB
strong/JJ
in/IN
the/DT
telecommunications/NNS
and/CC
health/NN
and/CC
science/NN
segments/NNS
./.
But/CC
the/DT
specialty-material/JJ
segment/NN
slowed/VBD
somewhat/RB
and/CC
consumer/NN
products/NNS
continued/VBD
below/IN
expectations/NNS
./.
As/IN
for/IN
joint/JJ
ventures/NNS
,/,
Mr./NNP
Houghton/NNP
said/VBD
profit/NN
was/VBD
``/``
essentially/RB
flat/JJ
''/''
due/JJ
primarily/RB
to/TO
a/DT
slow/JJ
recovery/NN
at/IN
Samsung-Corning/NNP
Co./NNP
in/IN
Korea/NNP
following/VBG
a/DT
strike/NN
at/IN
a/DT
major/JJ
customer/NN
and/CC
the/DT
disruption/NN
of/IN
shipments/NNS
to/TO
China/NNP
./.
Also/RB
,/,
profit/NN
was/VBD
hurt/VBN
by/IN
the/DT
strength/NN
of/IN
the/DT
dollar/NN
overseas/NN
which/WDT
negatively/RB
affected/VBD
the/DT
company/NN
's/POS
currency-exchange/JJ
rate/NN
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
Corning/NNP
closed/VBD
at/IN
$/$
38.50/CD
,/,
down/IN
75/CD
cents/NNS
./.
UAL/NNP
,/,
the/DT
hair-trigger/JJ
stock/NN
that/WDT
exploded/VBD
Friday/NNP
's/POS
market/NN
bombshell/NN
,/,
briefly/NN
traumatized/VBD
traders/NNS
again/RB
yesterday/NN
./.
Within/IN
10/CD
minutes/NNS
after/IN
an/DT
11:13/CD
a.m./NN
trading/NN
halt/NN
in/IN
UAL/NNP
,/,
parent/NN
of/IN
United/NNP
Airlines/NNPS
,/,
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
plunged/VBD
nearly/RB
27/CD
points/NNS
to/TO
a/DT
60.25-point/JJ
deficit/NN
./.
Computer-guided/JJ
buying/NN
then/RB
kicked/VBD
in/IN
,/,
and/CC
the/DT
industrials/NNS
regained/VBD
27/CD
points/NNS
in/IN
five/CD
minutes/NNS
./.
The/DT
lightning/NN
moves/NNS
show/VBP
that/IN
the/DT
stock/NN
market/NN
remains/VBZ
fragile/JJ
and/CC
volatile/JJ
--/:
ready/JJ
to/TO
jump/VB
at/IN
the/DT
slightest/JJS
rumor/NN
--/:
a/DT
few/JJ
days/NNS
after/IN
its/PRP$
shocking/JJ
190.58-point/JJ
plunge/NN
./.
Nervous/JJ
investors/NNS
continued/VBD
to/TO
limit/VB
their/PRP$
buying/NN
to/TO
blue-chip/JJ
stocks/NNS
while/IN
dumping/VBG
takeover-related/JJ
issues/NNS
./.
The/DT
industrial/JJ
average/NN
closed/VBD
down/IN
18.65/CD
,/,
to/TO
2638.73/CD
./.
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
volume/NN
was/VBD
a/DT
heavy/JJ
224,070,000/CD
shares/NNS
./.
Decliners/NNS
on/IN
the/DT
Big/NNP
Board/NNP
outnumbered/VBD
advancers/NNS
,/,
931/CD
to/TO
658/CD
./.
UAL/NNP
was/VBD
watched/VBN
closely/RB
and/CC
traded/VBD
heavily/RB
./.
The/DT
stock/NN
tumbled/VBD
24/CD
7\/8/CD
to/TO
198/CD
on/IN
volume/NN
of/IN
2.8/CD
million/CD
shares/NNS
./.
The/DT
market/NN
is/VBZ
still/RB
very/RB
touchy/JJ
about/IN
rumors/NNS
and/CC
news/NN
on/IN
pending/VBG
takeovers/NNS
./.
UAL/NNP
,/,
which/WDT
is/VBZ
trying/VBG
to/TO
reconstruct/VB
a/DT
buy-out/NN
bid/NN
that/IN
banks/NNS
would/MD
n't/RB
finance/VB
,/,
represents/VBZ
the/DT
future/NN
of/IN
one/CD
of/IN
the/DT
most/RBS
powerful/JJ
ingredients/NNS
in/IN
the/DT
bull/NN
market/NN
-/:
corporate/JJ
restructuring/NN
./.
An/DT
important/JJ
element/NN
of/IN
this/DT
phenomenon/NN
--/:
the/DT
now-shaky/JJ
market/NN
for/IN
junk/NN
bonds/NNS
,/,
used/VBN
often/RB
to/TO
finance/VB
restructurings/NNS
and/CC
takeovers/NNS
--/:
continued/VBD
to/TO
cast/VB
a/DT
pall/NN
over/IN
stocks/NNS
./.
``/``
It/PRP
was/VBD
a/DT
very/RB
nervous/JJ
day/NN
,/,
''/''
said/VBD
John/NNP
Geary/NNP
,/,
partner/NN
of/IN
the/DT
Big/NNP
Board/NNP
specialist/NN
firm/NN
Ziebarth/NNP
,/,
Geary/NNP
./.
The/DT
volatility/NN
wo/MD
n't/RB
end/VB
soon/RB
./.
This/DT
Friday/NNP
brings/VBZ
the/DT
``/``
double/JJ
witching/NN
hour/NN
,/,
''/''
Wall/NNP
Street/NNP
's/POS
nickname/NN
for/IN
the/DT
monthly/JJ
simultaneous/JJ
expiration/NN
of/IN
a/DT
variety/NN
of/IN
stock/NN
index/NN
futures/NNS
,/,
index/NN
options/NNS
and/CC
options/NNS
on/IN
individual/JJ
stocks/NNS
./.
Traders/NNS
are/VBP
already/RB
buckling/VBG
their/PRP$
seat/NN
belts/NNS
./.
Previous/JJ
monthly/JJ
expirations/NNS
of/IN
the/DT
Major/NNP
Market/NNP
Index/NNP
futures/NNS
and/CC
Standard/NNP
&/CC
Poor/NNP
's/POS
100-stock/JJ
index/NN
options/NNS
have/VBP
produced/VBN
spectacular/JJ
volatility/NN
./.
``/``
We/PRP
are/VBP
in/IN
one/CD
of/IN
those/DT
phases/NNS
where/WRB
you/PRP
are/VBP
going/VBG
to/TO
get/VB
a/DT
lot/NN
of/IN
volatile/JJ
expiration/NN
action/NN
,/,
''/''
said/VBD
Donald/NNP
Selkin/NNP
,/,
head/NN
of/IN
stock-index/JJ
research/NN
at/IN
Prudential-Bache/NNP
Securities/NNPS
./.
Investors/NNS
were/VBD
buying/VBG
yesterday/NN
,/,
but/CC
they/PRP
were/VBD
running/VBG
scared/VBN
to/TO
premier/JJ
blue/JJ
chips/NNS
such/JJ
as/IN
Procter/NNP
&/CC
Gamble/NNP
,/,
which/WDT
jumped/VBD
3/CD
3\/8/CD
to/TO
127/CD
./.
Investors/NNS
``/``
are/VBP
buying/VBG
stocks/NNS
that/WDT
have/VBP
predictable/JJ
earnings/NNS
,/,
''/''
said/VBD
Edward/NNP
J./NNP
Laux/NNP
,/,
head/NN
of/IN
block/NN
trading/NN
at/IN
Kidder/NNP
Peabody/NNP
./.
Along/IN
the/DT
way/NN
,/,
investors/NNS
dumped/VBD
takeover/NN
stocks/NNS
and/CC
shares/NNS
of/IN
banks/NNS
that/WDT
have/VBP
leveraged-buy-out/JJ
debt/NN
and/CC
risky/JJ
real/JJ
estate/NN
loans/NNS
on/IN
their/PRP$
books/NNS
./.
``/``
These/DT
loans/NNS
are/VBP
more/JJR
of/IN
a/DT
focus/NN
than/IN
lesser-developed-country/JJ
debt/NN
now/RB
,/,
''/''
said/VBD
William/NNP
Bee/NNP
,/,
senior/JJ
block/NN
trader/NN
at/IN
Prudential-Bache/NNP
Securities/NNPS
./.
Chase/NNP
Manhattan/NNP
,/,
which/WDT
sold/VBD
14/CD
million/CD
additional/JJ
shares/NNS
at/IN
40/CD
1\/8/CD
Monday/NNP
through/IN
an/DT
underwriting/VBG
group/NN
led/VBN
by/IN
Goldman/NNP
Sachs/NNP
,/,
closed/VBN
down/IN
1\/8/CD
to/TO
40/CD
./.
Citicorp/NNP
fell/VBD
1\/2/CD
to/TO
32/CD
,/,
and/CC
Manufacturers/NNPS
Hanover/NNP
slipped/VBD
3\/8/CD
to/TO
40/CD
1\/4/CD
./.
Chase/NNP
and/CC
Citicorp/NNP
's/POS
Citibank/NNP
are/VBP
involved/VBN
in/IN
the/DT
UAL/NNP
buy-out/NN
financing/NN
./.
Both/DT
Citicorp/NNP
and/CC
Manufacturers/NNPS
Hanover/NNP
reported/VBD
earnings/NNS
yesterday/NN
./.
In/IN
the/DT
first/JJ
hour/NN
of/IN
trading/NN
,/,
about/IN
one/CD
million/CD
shares/NNS
a/DT
minute/NN
changed/VBD
hands/NNS
on/IN
the/DT
Big/NNP
Board/NNP
as/IN
big/JJ
stock-index/JJ
arbitrage/NN
sell/NN
programs/NNS
pushed/VBD
prices/NNS
lower/JJR
./.
stock-index/JJ
arbitrage/NN
,/,
traders/NNS
buy/VBP
or/CC
sell/VBP
big/JJ
baskets/NNS
of/IN
stocks/NNS
against/IN
offsetting/VBG
positions/NNS
in/IN
futures/NNS
./.
Traders/NNS
said/VBD
many/JJ
of/IN
the/DT
sell/NN
programs/NNS
are/VBP
positions/NNS
being/VBG
established/VBN
ahead/RB
of/IN
this/DT
Friday/NNP
's/POS
expiration/NN
./.
Aside/RB
from/IN
computer-guided/JJ
selling/NN
,/,
airline/NN
stocks/NNS
took/VBD
a/DT
beating/NN
as/RB
well/RB
./.
The/DT
Dow/NNP
Jones/NNP
Transportation/NNP
Average/NNP
fell/VBD
49.96/CD
to/TO
close/VB
at/IN
1254.27/CD
./.
AMR/NNP
,/,
the/DT
parent/NN
of/IN
American/NNP
Airlines/NNPS
,/,
continued/VBD
to/TO
retreat/VB
in/IN
the/DT
wake/NN
of/IN
New/NNP
York/NNP
developer/NN
Donald/NNP
Trump/NNP
's/POS
decision/NN
to/TO
withdraw/VB
his/PRP$
$/$
120-a-share/JJ
takeover/NN
bid/NN
./.
The/DT
stock/NN
fell/VBD
3/CD
1\/4/CD
to/TO
73/CD
1\/4/CD
on/IN
3.4/CD
million/CD
shares/NNS
./.
Delta/NNP
Air/NNP
Lines/NNPS
fell/VBD
1/CD
7\/8/CD
to/TO
67/CD
7\/8/CD
,/,
USAir/NNP
Group/NNP
dropped/VBD
3\/4/CD
to/TO
40/CD
1\/4/CD
,/,
Southwest/NNP
Airlines/NNPS
dipped/VBD
1\/2/CD
to/TO
25/CD
and/CC
Alaska/NNP
Air/NNP
Group/NNP
slid/VBD
3\/8/CD
to/TO
24/CD
1\/4/CD
./.
But/CC
Texas/NNP
Air/NNP
,/,
the/DT
owner/NN
of/IN
Continental/NNP
and/CC
Eastern/NNP
airlines/NNS
,/,
bucked/VBD
the/DT
group/NN
's/POS
decline/NN
by/IN
rising/VBG
7\/8/CD
to/TO
14/CD
5\/8/CD
in/IN
American/NNP
Stock/NNP
Exchange/NNP
trading/NN
./.
Eastern/NNP
said/VBD
it/PRP
is/VBZ
ahead/RB
of/IN
schedule/NN
in/IN
resuming/VBG
its/PRP$
operations/NNS
after/IN
filing/VBG
earlier/RBR
this/DT
year/NN
for/IN
Chapter/NN
11/CD
bankruptcy/NN
protection/NN
,/,
from/IN
which/WDT
it/PRP
expects/VBZ
to/TO
emerge/VB
early/JJ
next/JJ
year/NN
./.
Philip/NNP
Morris/NNP
,/,
the/DT
most/RBS
active/JJ
Big/NNP
Board/NNP
issue/NN
for/IN
the/DT
second/JJ
consecutive/JJ
session/NN
,/,
was/VBD
unchanged/JJ
at/IN
43/CD
1\/4/CD
on/IN
3.9/CD
million/CD
shares/NNS
./.
Other/JJ
blue-chip/JJ
consumer/NN
issues/NNS
also/RB
fared/VBD
relatively/RB
well/RB
:/:
PepsiCo/NNP
rose/VBD
1/CD
3\/8/CD
to/TO
58/CD
1\/2/CD
;/:
Coca-Cola/NNP
Co./NNP
was/VBD
unchanged/JJ
at/IN
66/CD
3\/4/CD
;/:
McDonald/NNP
's/POS
also/RB
closed/VBD
unchanged/JJ
at/IN
30/CD
1\/2/CD
,/,
and/CC
Merck/NNP
rose/VBD
1\/2/CD
to/TO
75/CD
1\/4/CD
./.
Broader/JJR
averages/NNS
also/RB
fell/VBD
./.
Standard/NNP
&/CC
Poor/NNP
's/POS
500-stock/JJ
index/NN
fell/VBD
1.69/CD
to/TO
341.16/CD
,/,
and/CC
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
Composite/NNP
Index/NNP
fell/VBD
0.88/CD
to/TO
188.89/CD
./.
Among/IN
the/DT
takeover-related/JJ
stocks/NNS
that/WDT
sold/VBD
off/IN
yesterday/NN
were/VBD
Disney/NNP
,/,
which/WDT
closed/VBD
down/IN
2/CD
1\/8/CD
to/TO
121/CD
1\/4/CD
./.
Philips/NNP
Industries/NNPS
tumbled/VBD
3\/8/CD
to/TO
22/CD
7\/8/CD
;/:
Hilton/NNP
Hotels/NNPS
fell/VBD
2/CD
1\/2/CD
to/TO
92/CD
and/CC
Holiday/NNP
Corp./NNP
fell/VBD
2/CD
1\/8/CD
to/TO
69/CD
7\/8/CD
./.
Among/IN
other/JJ
blue/JJ
chips/NNS
,/,
Exxon/NNP
gained/VBD
1\/8/CD
to/TO
45/CD
1\/2/CD
./.
International/NNP
Paper/NNP
fell/VBD
1/CD
3\/8/CD
to/TO
51/CD
1\/2/CD
,/,
Union/NNP
Carbide/NNP
eased/VBD
7\/8/CD
to/TO
25/CD
,/,
Chevron/NNP
gained/VBD
1\/8/CD
to/TO
64/CD
,/,
and/CC
Eastman/NNP
Kodak/NNP
closed/VBD
down/IN
3\/4/CD
to/TO
44/CD
1\/4/CD
./.
The/DT
only/JJ
industry/NN
group/NN
to/TO
show/VB
a/DT
gain/NN
from/IN
the/DT
industrial/JJ
average/NN
's/POS
record/NN
high/JJ
on/IN
Oct./NNP
9/CD
is/VBZ
restaurants/NNS
./.
Among/IN
the/DT
three/CD
worst-performing/JJ
groups/NNS
,/,
with/IN
declines/NNS
of/IN
10/CD
%/NN
to/TO
20/CD
%/NN
,/,
are/VBP
airlines/NNS
,/,
casinos/NNS
and/CC
securities/NNS
brokers/NNS
./.
Trading/NN
also/RB
was/VBD
heavy/JJ
in/IN
the/DT
over-the-counter/JJ
market/NN
./.
The/DT
Nasdaq/NNP
composite/JJ
index/NN
closed/VBD
down/IN
1.05/CD
to/TO
459.93/CD
on/IN
volume/NN
of/IN
161.5/CD
million/CD
shares/NNS
./.
``/``
The/DT
environment/NN
is/VBZ
a/DT
lot/NN
more/RBR
trading-oriented/JJ
,/,
''/''
said/VBD
Gary/NNP
Rosenbach/NNP
,/,
manager/NN
of/IN
equity/NN
trading/NN
at/IN
the/DT
OTC/NNP
stock/NN
firm/NN
Needham/NNP
&/CC
Co./NNP
in/IN
New/NNP
York/NNP
./.
``/``
Because/IN
there/EX
is/VBZ
a/DT
lot/RB
more/JJR
volatility/NN
now/RB
,/,
if/IN
guys/NNS
see/VBP
that/IN
they/PRP
can/MD
make/VB
a/DT
quick/JJ
10/CD
%/NN
or/CC
15/CD
%/NN
profit/NN
,/,
they/PRP
'll/MD
take/VB
it/PRP
./.
''/''
Compaq/NNP
Computer/NNP
gained/VBD
2/CD
1\/8/CD
to/TO
103/CD
3\/4/CD
on/IN
two/CD
million/CD
shares/NNS
,/,
reflecting/VBG
market/NN
optimism/NN
about/IN
the/DT
prospects/NNS
for/IN
its/PRP$
newly/RB
introduced/VBN
notebook-sized/JJ
computer/NN
./.
B.F./NNP
Goodrich/NNP
dropped/VBD
1/CD
3\/8/CD
to/TO
49/CD
1\/8/CD
./.
The/DT
company/NN
's/POS
third-quarter/NN
earnings/NNS
were/VBD
below/IN
both/DT
analysts/NNS
'/POS
forecasts/NNS
and/CC
the/DT
year-earlier/JJ
level/NN
./.
Blue/NNP
Arrow/NNP
added/VBD
1\/2/CD
to/TO
17/CD
1\/4/CD
./.
The/DT
British/JJ
company/NN
plans/VBZ
to/TO
change/VB
its/PRP$
name/NN
to/TO
Manpower/NNP
,/,
the/DT
name/NN
of/IN
its/PRP$
U.S./NNP
unit/NN
,/,
and/CC
write/VB
off/IN
part/NN
of/IN
nearly/RB
$/$
1.2/CD
billion/CD
in/IN
good/JJ
will/NN
as/IN
a/DT
possible/JJ
prelude/NN
to/TO
reincorporating/VBG
in/IN
the/DT
U.S/NNP
./.
Dravo/NNP
rose/VBD
5\/8/CD
to/TO
16/CD
1\/8/CD
./.
Shearson/NNP
Lehman/NNP
Hutton/NNP
began/VBD
its/PRP$
coverage/NN
of/IN
the/DT
company/NN
with/IN
favorable/JJ
ratings/NNS
./.
Intertan/NNP
jumped/VBD
2/CD
1\/4/CD
to/TO
56/CD
7\/8/CD
./.
The/DT
company/NN
reported/VBD
that/IN
earnings/NNS
from/IN
operations/NNS
for/IN
the/DT
September/NNP
quarter/NN
were/VBD
up/IN
about/IN
25/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
./.
Bay/NNP
Financial/NNP
,/,
which/WDT
said/VBD
it/PRP
may/MD
be/VB
forced/VBN
to/TO
file/VB
under/IN
Chapter/NN
11/CD
if/IN
it/PRP
ca/MD
n't/RB
reach/VB
an/DT
agreement/NN
with/IN
its/PRP$
lenders/NNS
to/TO
relieve/VB
its/PRP$
debt/NN
burden/NN
,/,
plunged/VBD
1/CD
3\/8/CD
to/TO
2/CD
1\/8/CD
./.
The/DT
Amex/NNP
Market/NNP
Value/NNP
Index/NNP
fell/VBD
1.25/CD
to/TO
375.16/CD
./.
Volume/NN
totaled/VBD
16,800,000/CD
shares/NNS
./.
Among/IN
active/JJ
Amex/NNP
issues/NNS
,/,
the/DT
American/NNP
depositary/NN
receipts/NNS
of/IN
B.A.T/NNP
Industries/NNPS
fell/VBD
1\/4/CD
to/TO
11/CD
3\/4/CD
on/IN
turnover/NN
of/IN
885,800/CD
./.
Investment/NN
bankers/NNS
and/CC
retailers/NNS
said/VBD
the/DT
turmoil/NN
on/IN
Wall/NNP
Street/NNP
may/MD
benefit/VB
managers/NNS
who/WP
plan/VBP
to/TO
bid/VB
for/IN
U.S./NNP
retailing/NN
units/NNS
of/IN
the/DT
British/JJ
firm/NN
because/IN
takeover/NN
prices/NNS
may/MD
not/RB
be/VB
as/RB
high/JJ
as/IN
before/IN
the/DT
recent/JJ
correction/NN
./.
Fruit/NNP
of/IN
the/DT
Loom/NNP
slipped/VBD
1\/8/CD
to/TO
12/CD
3\/8/CD
on/IN
501,200/CD
shares/NNS
./.
DWG/NNP
Corp./NNP
jumped/VBD
1/CD
1\/4/CD
to/TO
15/CD
on/IN
454,100/CD
shares/NNS
./.
Carnival/NNP
Cruise/NNP
Lines/NNPS
Class/NNP
A/NNP
dropped/VBD
1/CD
to/TO
21/CD
1\/8/CD
on/IN
331,400/CD
shares/NNS
./.
Amex/NNP
issues/NNS
with/IN
big/JJ
percentage/NN
price/NN
gains/NNS
included/VBD
two/CD
Eastern/NNP
Air/NNP
Lines/NNPS
preferred/VBN
stocks/NNS
,/,
reacting/VBG
to/TO
the/DT
news/NN
about/IN
improved/VBN
recovery/NN
in/IN
flight/NN
schedules/NNS
after/IN
the/DT
company/NN
filed/VBD
for/IN
bankruptcy/NN
protection/NN
./.
Eastern/NNP
's/POS
Class/NNP
F/NNP
preferred/VBN
rose/VBD
12/CD
%/NN
,/,
or/CC
1/CD
1\/4/CD
,/,
to/TO
11/CD
3\/4/CD
;/:
the/DT
Class/NNP
E/NNP
preferred/VBN
gained/VBD
7/CD
%/NN
,/,
or/CC
5\/8/CD
,/,
to/TO
10/CD
1\/4/CD
./.
The/DT
biggest/JJS
percentage/NN
gainer/NN
on/IN
the/DT
Amex/NNP
was/VBD
Enviropact/NNP
,/,
which/WDT
jumped/VBD
23/CD
%/NN
,/,
or/CC
5\/8/CD
,/,
to/TO
3/CD
3\/8/CD
on/IN
volume/NN
of/IN
29,000/CD
shares/NNS
./.
On/IN
Monday/NNP
,/,
the/DT
company/NN
,/,
a/DT
provider/NN
of/IN
environmental/JJ
consulting/VBG
services/NNS
,/,
reported/VBD
a/DT
wider/JJR
fiscal/JJ
fourth-quarter/NN
loss/NN
and/CC
predicted/VBD
a/DT
loss/NN
for/IN
its/PRP$
fiscal/JJ
1990/CD
first/JJ
quarter/NN
,/,
but/CC
said/VBD
a/DT
profit/NN
is/VBZ
expected/VBN
for/IN
all/DT
of/IN
fiscal/JJ
1990/CD
./.
But/CC
its/PRP$
auditor/NN
,/,
Ernst/NNP
&/CC
Young/NNP
,/,
said/VBD
Enviropact/NNP
's/POS
financial/JJ
situation/NN
raises/VBZ
``/``
substantial/JJ
doubt/NN
about/IN
its/PRP$
ability/NN
to/TO
continue/VB
as/IN
a/DT
going/VBG
concern/NN
./.
''/''
Mission/NNP
Resource/NNP
Partners/NNPS
advanced/VBD
8/CD
%/NN
,/,
or/CC
1/CD
3\/8/CD
,/,
to/TO
18/CD
7\/8/CD
./.
Sonja/NNP
Steptoe/NNP
and/CC
David/NNP
Wilson/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
ONE/CD
LIBERTY/NNP
PROPERTIES/NNPS
Inc./NNP
declared/VBD
a/DT
dividend/NN
of/IN
40/CD
cents/NNS
a/DT
share/NN
on/IN
its/PRP$
$/$
16.50/CD
cumulative/JJ
convertible/JJ
preferred/VBN
stock/NN
,/,
payable/JJ
Jan./NNP
2/CD
to/TO
stock/NN
of/IN
record/NN
Dec./NNP
8/CD
./.
But/CC
directors/NNS
of/IN
the/DT
Great/NNP
Neck/NNP
,/,
N.Y./NNP
,/,
real/JJ
estate/NN
investment/NN
trust/NN
did/VBD
n't/RB
act/VB
on/IN
the/DT
common/JJ
stock/NN
dividend/NN
./.
And/CC
they/PRP
wo/MD
n't/RB
consider/VB
such/PDT
a/DT
dividend/NN
,/,
the/DT
trust/NN
added/VBD
,/,
before/IN
results/NNS
are/VBP
available/JJ
for/IN
the/DT
first/JJ
quarter/NN
of/IN
1990/CD
./.
In/IN
part/NN
,/,
the/DT
trust/NN
cited/VBD
the/DT
need/NN
to/TO
retain/VB
cash/NN
for/IN
possible/JJ
acquisitions/NNS
./.
According/VBG
to/TO
a/DT
spokesman/NN
,/,
One/CD
Liberty/NNP
will/MD
have/VB
paid/VBN
out/IN
as/IN
dividends/NNS
the/DT
required/VBN
amount/NN
of/IN
its/PRP$
taxable/JJ
income/NN
to/TO
maintain/VB
its/PRP$
legal/JJ
status/NN
as/IN
a/DT
real/JJ
estate/NN
investment/NN
trust/NN
./.
Banks/NNS
are/VBP
continuing/VBG
to/TO
go/VB
after/IN
individual/JJ
investors/NNS
,/,
despite/IN
falling/VBG
interest/NN
rates/NNS
./.
Yields/NNS
on/IN
small-denomination/NN
certificates/NNS
of/IN
deposit/NN
fell/VBD
at/IN
about/IN
half/PDT
the/DT
rate/NN
of/IN
so-called/JJ
jumbo/JJ
CDs/NNS
this/DT
week/NN
,/,
according/VBG
to/TO
Banxquote/NNP
Money/NNP
Markets/NNPS
,/,
an/DT
information/NN
service/NN
based/VBN
here/RB
./.
Investors/NNS
can/MD
get/VB
slightly/RB
higher/JJR
yields/NNS
on/IN
deposits/NNS
below/IN
$/$
50,000/CD
than/IN
they/PRP
can/MD
on/IN
deposits/NNS
of/IN
$/$
90,000/CD
and/CC
up/IN
./.
``/``
Banks/NNS
want/VBP
to/TO
remain/VB
competitive/JJ
,/,
''/''
said/VBD
Norberto/NNP
Mehl/NNP
,/,
chairman/NN
of/IN
Banxquote/NNP
./.
``/``
October/NNP
is/VBZ
a/DT
big/JJ
rollover/NN
month/NN
and/CC
perhaps/RB
they/PRP
anticipate/VBP
greater/JJR
demand/NN
.../:
among/IN
people/NNS
leaving/VBG
the/DT
stock/NN
market/NN
./.
''/''
Some/DT
bankers/NNS
are/VBP
reporting/VBG
more/JJR
inquiries/NNS
than/IN
usual/JJ
about/IN
CDs/NNS
since/IN
Friday/NNP
./.
``/``
Reports/NNS
from/IN
branches/NNS
are/VBP
that/IN
there/EX
has/VBZ
been/VBN
greater/JJR
interest/NN
in/IN
the/DT
last/JJ
day/NN
or/CC
so/RB
,/,
''/''
said/VBD
Steven/NNP
Braitman/NNP
,/,
a/DT
vice/NN
president/NN
at/IN
Chemical/NNP
Bank/NNP
in/IN
New/NNP
York/NNP
./.
Chemical/NNP
said/VBD
deposits/NNS
Monday/NNP
were/VBD
about/IN
$/$
5/CD
million/CD
higher/JJR
than/IN
usual/JJ
and/CC
it/PRP
expects/VBZ
more/JJR
activity/NN
as/IN
investors/NNS
receive/VBP
the/DT
proceeds/NNS
from/IN
sales/NNS
of/IN
stock/NN
./.
``/``
This/DT
is/VBZ
no/DT
time/NN
to/TO
be/VB
playing/VBG
in/IN
the/DT
street/NN
.../:
the/DT
Dow/NNP
has/VBZ
more/JJR
ups/NNS
and/CC
downs/NNS
than/IN
an/DT
elevator/NN
,/,
''/''
proclaimed/VBD
an/DT
advertisement/NN
Monday/NNP
in/IN
New/NNP
York/NNP
newspapers/NNS
,/,
touting/VBG
Lincoln/NNP
Savings/NNP
Bank/NNP
's/POS
one-year/JJ
CD/NN
./.
Harold/NNP
Jones/NNP
,/,
Lincoln/NNP
's/POS
chief/NN
retail/JJ
banking/NN
officer/NN
,/,
said/VBD
there/EX
has/VBZ
n't/RB
yet/RB
been/VBN
``/``
a/DT
discernible/JJ
response/NN
,/,
''/''
although/IN
the/DT
ad/NN
included/VBD
a/DT
coupon/NN
that/WDT
could/MD
arrive/VB
later/RB
in/IN
the/DT
week/NN
./.
Friday/NNP
's/POS
market/NN
rout/NN
came/VBD
smack/RB
in/IN
the/DT
middle/NN
of/IN
the/DT
heaviest/JJS
month/NN
for/IN
CD/NN
rollovers/NNS
,/,
when/WRB
a/DT
number/NN
of/IN
banks/NNS
and/CC
thrifts/NNS
already/RB
have/VBP
promotions/NNS
under/IN
way/NN
./.
First/NNP
National/NNP
Bank/NNP
of/IN
Boston/NNP
,/,
for/IN
example/NN
,/,
is/VBZ
offering/VBG
certain/JJ
new/JJ
depositors/NNS
an/DT
extra/JJ
quarter/NN
of/IN
a/DT
percentage/NN
point/NN
on/IN
six-month/JJ
and/CC
12-month/JJ
CDs/NNS
./.
Some/DT
banks/NNS
actually/RB
boosted/VBD
yields/NNS
on/IN
the/DT
shortest/JJS
term/NN
CDs/NNS
in/IN
the/DT
latest/JJS
week/NN
./.
New/NNP
York/NNP
's/POS
Citibank/NNP
,/,
for/IN
instance/NN
,/,
increased/VBD
the/DT
yield/NN
on/IN
small-denomination/NN
three-month/JJ
CDs/NNS
to/TO
8/CD
%/NN
from/IN
7.9/CD
%/NN
./.
On/IN
average/NN
,/,
however/RB
,/,
three-month/JJ
CDs/NNS
at/IN
major/JJ
banks/NNS
are/VBP
yielding/VBG
a/DT
tenth/JJ
of/IN
a/DT
percentage/NN
point/NN
less/JJR
than/IN
they/PRP
were/VBD
a/DT
week/NN
ago/IN
./.
Average/JJ
yields/NNS
on/IN
CDs/NNS
aimed/VBD
at/IN
individual/JJ
investors/NNS
fell/VBD
less/JJR
than/IN
half/DT
as/RB
much/JJ
as/IN
yields/NNS
on/IN
Treasury/NN
bills/NNS
sold/VBN
at/IN
Monday/NNP
's/POS
auction/NN
./.
Six-month/JJ
CDs/NNS
of/IN
$/$
50,000/CD
and/CC
less/RBR
yielded/VBD
an/DT
average/JJ
8.02/CD
%/NN
in/IN
the/DT
week/NN
ended/VBD
Tuesday/NNP
,/,
down/IN
from/IN
8.10/CD
%/NN
,/,
according/VBG
to/TO
Banxquote/NNP
./.
The/DT
yield/NN
on/IN
six-month/JJ
T-bills/NNS
fell/VBD
to/TO
7.82/CD
%/NN
on/IN
Monday/NNP
,/,
from/IN
8.01/CD
%/NN
the/DT
week/NN
before/IN
./.
Meanwhile/RB
,/,
the/DT
average/JJ
yield/NN
on/IN
six-month/JJ
CDs/NNS
of/IN
more/RBR
than/IN
$/$
90,000/CD
fell/VBD
to/TO
7.93/CD
%/NN
in/IN
the/DT
latest/JJS
week/NN
,/,
according/VBG
to/TO
Banxquote/NNP
,/,
from/IN
8.10/CD
%/NN
the/DT
week/NN
before/IN
./.
Mr./NNP
Mehl/NNP
noted/VBD
that/IN
actual/JJ
rates/NNS
are/VBP
almost/RB
identical/JJ
on/IN
small/JJ
and/CC
large-denomination/NN
CDs/NNS
,/,
but/CC
yields/NNS
on/IN
CDs/NNS
aimed/VBD
at/IN
the/DT
individual/JJ
investor/NN
are/VBP
boosted/VBN
by/IN
more/RBR
frequent/JJ
compounding/NN
./.
CDs/NNS
sold/VBD
by/IN
major/JJ
brokerage/NN
houses/NNS
,/,
which/WDT
like/IN
jumbo/JJ
CDs/NNS
tend/VBP
to/TO
closely/RB
follow/VB
interest/NN
rate/NN
trends/NNS
,/,
also/RB
posted/VBN
larger/JJR
drops/NNS
in/IN
yields/NNS
./.
A/DT
six-month/JJ
,/,
broker-sold/JJ
CD/NN
,/,
for/IN
example/NN
,/,
was/VBD
yielding/VBG
an/DT
average/JJ
8.09/CD
%/NN
in/IN
the/DT
latest/JJS
week/NN
,/,
a/DT
fifth/JJ
of/IN
a/DT
percentage/NN
point/NN
lower/JJR
than/IN
the/DT
week/NN
before/IN
./.
In/IN
late/JJ
April/NNP
,/,
when/WRB
interest/NN
rates/NNS
were/VBD
at/IN
their/PRP$
recent/JJ
highs/NNS
,/,
short-term/NNP
CDs/NNS
sold/VBN
by/IN
brokers/NNS
were/VBD
offering/VBG
yields/NNS
half/PDT
a/DT
percentage/NN
point/NN
or/CC
more/RBR
higher/JJR
than/IN
banks/NNS
./.
CD/NN
yields/NNS
are/VBP
generally/RB
expected/VBN
to/TO
fall/VB
further/RB
in/IN
coming/VBG
weeks/NNS
./.
``/``
What/WP
happened/VBD
in/IN
the/DT
stock/NN
market/NN
and/CC
the/DT
bigger/JJR
trade/NN
deficit/NN
''/''
reported/VBN
yesterday/NN
``/``
make/VBP
it/PRP
unlikely/JJ
that/IN
short-term/JJ
interest/NN
rates/NNS
will/MD
rise/VB
''/''
any/DT
time/NN
soon/RB
,/,
said/VBD
Mr./NNP
Mehl/NNP
of/IN
Banxquote/NNP
./.
``/``
Even/RB
before/IN
the/DT
market/NN
drop/NN
,/,
rates/NNS
were/VBD
down/IN
about/IN
half/PDT
a/DT
percentage/NN
point/NN
,/,
''/''
said/VBD
Robert/NNP
J./NNP
Hutchinson/NNP
,/,
senior/JJ
vice/NN
president/NN
for/IN
retail/JJ
marketing/NN
at/IN
Manufacturers/NNPS
Hanover/NNP
Trust/NNP
Co./NNP
in/IN
New/NNP
York/NNP
./.
``/``
That/DT
puts/VBZ
pressure/NN
on/IN
CD/NN
rates/NNS
./.
''/''
Conservatives/NNS
have/VBP
an/DT
important/JJ
decision/NN
to/TO
make/VB
this/DT
fall/NN
./.
At/IN
the/DT
recent/JJ
meetings/NNS
of/IN
the/DT
World/NNP
Bank/NNP
and/CC
International/NNP
Monetary/NNP
Fund/NNP
,/,
the/DT
Bush/NNP
administration/NN
announced/VBD
its/PRP$
intention/NN
to/TO
decide/VB
by/IN
yearend/NN
the/DT
size/NN
of/IN
the/DT
next/JJ
increase/NN
in/IN
the/DT
IMF/NNP
's/POS
capital/NN
base/NN
./.
While/IN
the/DT
U.S./NNP
share/NN
of/IN
the/DT
increase/NN
probably/RB
will/MD
not/RB
reach/VB
the/DT
$/$
12/CD
billion/CD
or/CC
more/RBR
implicit/JJ
in/IN
the/DT
IMF/NNP
's/POS
request/NN
for/IN
a/DT
doubling/NN
of/IN
its/PRP$
$/$
90/CD
billion/CD
capital/NN
,/,
the/DT
administration/NN
probably/RB
will/MD
agree/VB
to/TO
a/DT
multibillion-dollar/JJ
increase/NN
./.
This/DT
would/MD
be/VB
consistent/JJ
with/IN
its/PRP$
unwavering/VBG
support/NN
for/IN
the/DT
Brady/NNP
Plan/NNP
and/CC
G-7/NNP
exchange-rate/JJ
intervention/NN
,/,
and/CC
with/IN
its/PRP$
financial/JJ
commitment/NN
to/TO
Mexico/NNP
,/,
Poland/NNP
and/CC
others/NNS
./.
The/DT
IMF/NNP
has/VBZ
several/JJ
reasons/NNS
for/IN
requesting/VBG
the/DT
increase/NN
./.
Its/PRP$
role/NN
in/IN
the/DT
economies/NNS
of/IN
developing/VBG
countries/NNS
has/VBZ
grown/VBN
steadily/RB
since/IN
the/DT
1970s/CD
./.
The/DT
size/NN
and/CC
pace/NN
of/IN
disbursements/NNS
will/MD
accelerate/VB
further/RB
under/IN
the/DT
Brady/NNP
Plan/NNP
,/,
which/WDT
promises/VBZ
larger/JJR
and/CC
earlier/JJR
disbursements/NNS
to/TO
approved/VBN
countries/NNS
./.
At/IN
least/JJS
three/CD
other/JJ
factors/NNS
have/VBP
encouraged/VBN
the/DT
IMF/NNP
to/TO
insist/VB
on/IN
increased/VBN
capital/NN
./.
First/JJ
,/,
it/PRP
argues/VBZ
that/IN
its/PRP$
capital/NN
base/NN
must/MD
be/VB
increased/VBN
in/IN
order/NN
to/TO
maintain/VB
its/PRP$
size/NN
relative/JJ
to/TO
world/NN
financial/JJ
markets/NNS
,/,
for/IN
which/WDT
it/PRP
feels/VBZ
some/DT
responsibility/NN
./.
Second/JJ
,/,
the/DT
World/NNP
Bank/NNP
's/POS
recent/JJ
$/$
75/CD
billion/CD
capital/NN
increase/NN
--/:
$/$
14/CD
billion/CD
from/IN
the/DT
U.S./NNP
--/:
has/VBZ
left/VBN
the/DT
IMF/NNP
feeling/VBG
less/JJR
than/IN
first/JJ
fiddle/NN
among/IN
international/JJ
financial/JJ
institutions/NNS
./.
Third/JJ
,/,
the/DT
IMF/NNP
would/MD
like/VB
to/TO
meet/VB
Japan/NNP
's/POS
request/NN
for/IN
increased/VBN
ownership/NN
4.5/CD
%/NN
Japan/NNP
has/VBZ
supported/VBN
a/DT
larger/JJR
role/NN
for/IN
the/DT
IMF/NNP
in/IN
developing-country/JJ
debt/NN
issues/NNS
,/,
and/CC
is/VBZ
an/DT
important/JJ
financial/JJ
resource/NN
for/IN
IMF-guided/JJ
programs/NNS
in/IN
developing/VBG
countries/NNS
./.
While/IN
international/JJ
politics/NNS
may/MD
argue/VB
for/IN
the/DT
capital/NN
increase/NN
,/,
there/EX
is/VBZ
a/DT
clear/JJ
economic/JJ
case/NN
against/IN
it/PRP
./.
Opponents/NNS
of/IN
the/DT
increase/NN
argue/VBP
that/IN
the/DT
IMF/NNP
practices/NNS
central/JJ
planning/NN
while/IN
supporting/VBG
ineffective/JJ
governments/NNS
./.
They/PRP
question/VBP
whether/IN
the/DT
IMF/NNP
has/VBZ
any/DT
role/NN
in/IN
developing/VBG
countries/NNS
,/,
given/VBN
its/PRP$
original/JJ
mandate/NN
to/TO
assist/VB
industrial/JJ
countries/NNS
in/IN
balance-of-payments/NNS
emergencies/NNS
./.
Opponents/NNS
show/VBP
that/IN
there/EX
are/VBP
already/RB
more/JJR
funds/NNS
available/JJ
than/IN
commendable/JJ
reform/NN
efforts/NNS
./.
They/PRP
worry/VBP
that/DT
new/JJ
IMF/NNP
funding/NN
of/IN
developing/VBG
countries/NNS
will/MD
simply/RB
end/VB
up/IN
substituting/VBG
IMF/NNP
debt/NN
for/IN
reschedulable/JJ
commercial/JJ
bank/NN
debt/NN
,/,
a/DT
bad/JJ
trade/NN
all/DT
around/IN
./.
They/PRP
believe/VBP
microeconomics/NNS
,/,
which/WDT
addresses/VBZ
the/DT
problems/NNS
of/IN
markets/NNS
,/,
investment/NN
climate/NN
and/CC
management/NN
practices/NNS
,/,
is/VBZ
the/DT
key/NN
to/TO
developing-country/JJ
growth/NN
,/,
not/RB
the/DT
IMF/NNP
's/POS
Keynesian/JJ
focus/NN
on/IN
trade/NN
deficits/NNS
,/,
quarterly/JJ
targets/NNS
and/CC
government/NN
debt/NN
./.
They/PRP
point/VBP
at/IN
the/DT
numerous/JJ
developing-country/JJ
governments/NNS
that/WDT
have/VBP
inflated/VBN
,/,
taxed/VBN
and/CC
regulated/VBN
themselves/PRP
into/IN
despair/NN
under/IN
successive/JJ
IMF/NNP
programs/NNS
./.
Decisions/NNS
on/IN
increases/NNS
in/IN
the/DT
IMF/NNP
's/POS
capital/NN
base/NN
traditionally/RB
are/VBP
made/VBN
by/IN
the/DT
administration/NN
,/,
with/IN
subsequent/JJ
authorization/NN
by/IN
Congress/NNP
./.
The/DT
last/JJ
U.S./NNP
congressional/JJ
authorization/NN
,/,
in/IN
1983/CD
,/,
was/VBD
a/DT
political/JJ
donnybrook/NN
and/CC
carried/VBD
a/DT
$/$
6/CD
billion/CD
housing/NN
program/NN
along/IN
with/IN
it/PRP
to/TO
secure/VB
adequate/JJ
votes/NNS
./.
The/DT
politics/NNS
of/IN
the/DT
1990/CD
congressional/JJ
authorization/NN
are/VBP
likely/JJ
to/TO
be/VB
similar/JJ
to/TO
those/DT
of/IN
previous/JJ
authorizations/NNS
./.
Liberals/NNS
may/MD
support/VB
the/DT
stabilizing/VBG
,/,
quasi-governmental/JJ
role/NN
of/IN
the/DT
IMF/NNP
on/IN
two/CD
conditions/NNS
:/:
that/IN
the/DT
administration/NN
give/VBP
assurances/NNS
that/IN
liberal/JJ
Democrats/NNPS
'/POS
support/NN
will/MD
not/RB
be/VB
used/VBN
against/IN
them/PRP
in/IN
congressional/JJ
re-election/NN
campaigns/NNS
;/:
and/CC
that/IN
the/DT
legislation/NN
address/NN
--/:
with/IN
dollars/NNS
--/:
social/JJ
and/CC
environmental/JJ
concerns/NNS
./.
Conservative/NNP
Republicans/NNPS
will/MD
be/VB
given/VBN
the/DT
choice/NN
of/IN
supporting/VBG
or/CC
fighting/VBG
their/PRP$
party/NN
's/POS
popular/JJ
president/NN
in/IN
an/DT
election/NN
year/NN
./.
A/DT
U.S./NNP
decision/NN
to/TO
refuse/VB
the/DT
IMF/NNP
its/PRP$
capital/NN
increase/NN
,/,
or/CC
limit/VB
it/PRP
to/TO
25/CD
%/NN
,/,
would/MD
bring/VB
a/DT
major/JJ
change/NN
in/IN
international/JJ
economic/JJ
policy/NN
,/,
and/CC
could/MD
not/RB
be/VB
taken/VBN
lightly/RB
./.
Commentators/NNS
would/MD
fret/VB
over/IN
the/DT
implications/NNS
for/IN
the/DT
G-7/NN
coordination/NN
process/NN
and/CC
the/DT
stability/NN
of/IN
world/NN
financial/JJ
markets/NNS
./.
Because/IN
commercial/JJ
banks/NNS
and/CC
the/DT
developing-country/JJ
governments/NNS
believe/VBP
they/PRP
will/MD
get/VB
a/DT
piece/NN
of/IN
any/DT
capital/NN
increase/NN
,/,
a/DT
scaled-down/JJ
IMF/NNP
mission/NN
would/MD
leave/VB
both/DT
feeling/VBG
shortchanged/VBN
./.
Furthermore/RB
,/,
a/DT
U.S./NNP
rejection/NN
of/IN
the/DT
capital/NN
increase/NN
transfer/NN
of/IN
shares/NNS
to/TO
Japan/NNP
Japan/NNP
an/DT
argument/NN
against/IN
future/JJ
calls/NNS
for/IN
economic/JJ
burden-sharing/NN
./.
On/IN
the/DT
other/JJ
hand/NN
,/,
a/DT
decision/NN
to/TO
increase/VB
the/DT
IMF/NNP
's/POS
capital/NN
would/MD
reinforce/VB
the/DT
central/JJ
economic/JJ
role/NN
of/IN
multilateral/JJ
institutions/NNS
in/IN
developing/VBG
countries/NNS
./.
With/IN
the/DT
increase/NN
,/,
even/RB
more/RBR
developing-country/JJ
energy/NN
and/CC
talent/NN
would/MD
be/VB
diverted/VBN
from/IN
creating/VBG
profitable/JJ
economic/JJ
systems/NNS
to/TO
setting/NN
up/IN
economic/JJ
planning/VBG
ministries/NNS
that/WDT
generate/VBP
IMF-approved/JJ
economic/JJ
plans/NNS
./.
Upping/VBG
the/DT
ante/NN
could/MD
slow/VB
economic/JJ
development/NN
even/RB
further/RB
,/,
as/IN
countries/NNS
delay/VBP
market-opening/JJ
steps/NNS
in/IN
anticipation/NN
of/IN
richer/JJR
multilateral/JJ
support/NN
./.
Conservatives/NNS
should/MD
take/VB
a/DT
position/NN
prior/RB
to/TO
the/DT
administration/NN
's/POS
year-end/JJ
deadline/NN
./.
The/DT
issues/NNS
are/VBP
too/RB
important/JJ
to/TO
be/VB
left/VBN
to/TO
the/DT
financial/JJ
and/CC
budget/NN
ministries/NNS
fighting/VBG
over/IN
the/DT
size/NN
of/IN
the/DT
capital/NN
increase/NN
,/,
rather/RB
than/IN
its/PRP$
purpose/NN
./.
If/IN
conservatives/NNS
do/VBP
n't/RB
support/VB
an/DT
increase/NN
in/IN
the/DT
IMF/NNP
's/POS
capital/NN
,/,
then/RB
it/PRP
is/VBZ
incumbent/JJ
on/IN
them/PRP
to/TO
speak/VB
up/IN
now/RB
and/CC
explain/VB
the/DT
alternative/NN
./.
Mr./NNP
Malpass/NNP
directs/VBZ
the/DT
Republican/JJ
staff/NN
of/IN
the/DT
Joint/NNP
Economic/NNP
Committee/NNP
of/IN
Congress/NNP
./.
The/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
fined/VBD
and/CC
suspended/VBD
two/CD
commodities/NNS
traders/NNS
accused/VBN
of/IN
making/VBG
prearranged/VBN
trades/NNS
with/IN
each/DT
other/JJ
that/IN
allegedly/RB
cheated/VBD
a/DT
customer/NN
./.
Merc/NNP
officials/NNS
said/VBD
Gary/NNP
N./NNP
Roberts/NNP
was/VBD
disciplined/VBN
following/VBG
the/DT
exchange/NN
's/POS
investigation/NN
of/IN
his/PRP$
trading/NN
in/IN
several/JJ
commodities/NNS
pits/NNS
from/IN
July/NNP
to/TO
November/NNP
1988/CD
./.
The/DT
Merc/NNP
said/VBD
Mr./NNP
Roberts/NNP
withheld/VBD
from/IN
the/DT
market/NN
certain/JJ
orders/NNS
in/IN
cooperation/NN
with/IN
another/DT
trader/NN
,/,
David/NNP
Stein/NNP
./.
The/DT
Merc/NNP
fined/VBD
Mr./NNP
Roberts/NNP
$/$
15,000/CD
and/CC
suspended/VBD
his/PRP$
trading/NN
membership/NN
for/IN
three/CD
years/NNS
./.
Also/RB
,/,
he/PRP
and/CC
Mr./NNP
Stein/NNP
were/VBD
ordered/VBN
to/TO
make/VB
restitution/NN
of/IN
$/$
35,000/CD
to/TO
a/DT
customer/NN
./.
Mr./NNP
Stein/NNP
was/VBD
fined/VBN
$/$
25,000/CD
and/CC
suspended/VBN
for/IN
three/CD
years/NNS
./.
Messrs./NNP
Roberts/NNP
and/CC
Stein/NNP
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
The/DT
Merc/NNP
said/VBD
that/IN
as/IN
part/NN
of/IN
the/DT
disciplinary/JJ
settlement/NN
,/,
neither/DT
man/NN
admitted/VBD
,/,
nor/CC
denied/VBD
the/DT
alleged/VBN
violations/NNS
./.
Neither/DT
was/VBD
among/IN
the/DT
46/CD
traders/NNS
indicted/VBN
last/JJ
August/NNP
in/IN
a/DT
federal/JJ
investigation/NN
of/IN
traders/NNS
at/IN
both/PDT
the/DT
Merc/NNP
and/CC
the/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
./.
In/IN
a/DT
move/NN
that/WDT
could/MD
pose/VB
a/DT
new/JJ
competitive/JJ
challenge/NN
to/TO
Time/NNP
Warner/NNP
Inc./NNP
's/POS
powerful/JJ
Home/NNP
Box/NNP
Office/NNP
,/,
cable/NN
giant/NN
Tele-Communications/NNPS
Inc./NNP
agreed/VBD
to/TO
buy/VB
half/DT
of/IN
Showtime/NNP
Networks/NNPS
Inc./NNP
from/IN
Viacom/NNP
Inc./NNP
for/IN
$/$
225/CD
million/CD
./.
The/DT
purchase/NN
comes/VBZ
after/IN
nearly/RB
three/CD
years/NNS
of/IN
on-again/JJ
off-again/JJ
talks/NNS
between/IN
TCI/NNP
and/CC
Viacom/NNP
,/,
which/WDT
has/VBZ
also/RB
discussed/VBN
the/DT
sale/NN
of/IN
an/DT
interest/NN
in/IN
Showtime/NNP
with/IN
other/JJ
cable/NN
operators/NNS
./.
Showtime/NNP
is/VBZ
a/DT
distant/JJ
No./NN
2/CD
to/TO
Home/NNP
Box/NNP
Office/NNP
,/,
and/CC
in/IN
May/NNP
filed/VBD
a/DT
$/$
2.5/CD
billion/CD
antitrust/JJ
suit/NN
against/IN
Time/NNP
Warner/NNP
,/,
charging/VBG
the/DT
company/NN
and/CC
its/PRP$
HBO/NNP
and/CC
American/NNP
Television/NNP
cable/NN
units/NNS
with/IN
conspiring/VBG
to/TO
monopolize/VB
the/DT
pay/NN
TV/NN
business/NN
./.
HBO/NNP
has/VBZ
close/RB
to/TO
24/CD
million/CD
subscribers/NNS
to/TO
its/PRP$
HBO/NNP
and/CC
Cinemax/NNP
networks/NNS
,/,
while/IN
Showtime/NNP
and/CC
its/PRP$
sister/NN
service/NN
,/,
The/NNP
Movie/NNP
Channel/NNP
,/,
have/VBP
only/RB
about/IN
10/CD
million/CD
,/,
according/VBG
to/TO
Paul/NNP
Kagan/NNP
Associates/NNPS
,/,
a/DT
Carmel/NNP
,/,
Calif./NNP
,/,
research/NN
firm/NN
./.
For/IN
TCI/NNP
,/,
the/DT
investment/NN
in/IN
Showtime/NNP
puts/VBZ
it/PRP
in/IN
an/DT
unusual/JJ
position/NN
;/:
as/IN
the/DT
largest/JJS
cable/NN
operator/NN
,/,
with/IN
control/NN
of/IN
close/NN
to/TO
12/CD
million/CD
of/IN
the/DT
nation/NN
's/POS
52/CD
million/CD
cable/NN
subscribers/NNS
,/,
TCI/NNP
is/VBZ
HBO/NNP
's/POS
largest/JJS
customer/NN
./.
But/CC
TCI/NNP
President/NNP
John/NNP
Malone/NNP
has/VBZ
long/RB
been/VBN
concerned/VBN
about/IN
HBO/NNP
's/POS
dominance/NN
of/IN
the/DT
pay/NN
TV/NN
business/NN
,/,
and/CC
has/VBZ
been/VBN
eager/JJ
to/TO
keep/VB
Showtime/NNP
as/IN
a/DT
healthy/JJ
competitor/NN
./.
``/``
It/PRP
is/VBZ
important/JJ
to/TO
the/DT
cable/NN
industry/NN
that/IN
we/PRP
have/VBP
a/DT
vibrant/JJ
and/CC
competitive/JJ
pay-television/NN
marketplace/NN
,/,
''/''
Mr./NNP
Malone/NNP
said/VBD
in/IN
a/DT
statement/NN
./.
In/IN
a/DT
telephone/NN
interview/NN
,/,
Robert/NNP
Thomson/NNP
,/,
TCI/NNP
senior/JJ
vice/NN
president/NN
,/,
said/VBD
Showtime/NNP
's/POS
suit/NN
against/IN
HBO/NNP
``/``
does/VBZ
n't/RB
involve/VB
us/PRP
,/,
and/CC
nothing/NN
we/PRP
're/VBP
doing/VBG
here/RB
bears/VBZ
any/DT
relationship/NN
to/TO
that/DT
./.
''/''
He/PRP
added/VBD
,/,
``/``
We/PRP
do/VBP
n't/RB
intend/VB
to/TO
be/VB
drawn/VBN
into/IN
it/PRP
,/,
''/''
noting/VBG
that/IN
TCI/NNP
wo/MD
n't/RB
play/VB
any/DT
active/JJ
role/NN
in/IN
the/DT
management/NN
of/IN
Showtime/NNP
./.
Linking/VBG
up/IN
Showtime/NNP
with/IN
the/DT
largest/JJS
cable/NN
operator/NN
in/IN
the/DT
U.S./NNP
could/MD
sharply/RB
boost/VB
its/PRP$
subscribers/NNS
./.
TCI/NNP
said/VBD
it/PRP
may/MD
bring/VB
in/IN
other/JJ
cable/NN
operators/NNS
as/IN
investors/NNS
,/,
a/DT
practice/NN
it/PRP
has/VBZ
employed/VBN
in/IN
the/DT
past/NN
with/IN
investments/NNS
in/IN
other/JJ
cable/NN
networks/NNS
,/,
such/JJ
as/IN
The/NNP
Discovery/NNP
Channel/NNP
./.
Additional/JJ
cable/NN
partners/NNS
could/MD
boost/VB
subscribers/NNS
even/RB
further/RB
./.
Time/NNP
Warner/NNP
declined/VBD
comment/NN
./.
In/IN
addition/NN
to/TO
owning/VBG
HBO/NNP
,/,
Time/NNP
Warner/NNP
owns/VBZ
American/NNP
Television/NNP
&/CC
Communications/NNPS
Inc./NNP
,/,
the/DT
nation/NN
's/POS
second/JJ
largest/JJS
cable/NN
operator/NN
after/IN
TCI/NNP
./.
Viacom/NNP
also/RB
owns/VBZ
cable/NN
systems/NNS
,/,
but/CC
it/PRP
is/VBZ
the/DT
14th/JJ
largest/JJS
operator/NN
of/IN
such/JJ
systems/NNS
,/,
with/IN
less/RBR
than/IN
one/CD
million/CD
subscribers/NNS
./.
The/DT
TCI/NNP
investment/NN
is/VBZ
a/DT
big/JJ
victory/NN
for/IN
Viacom/NNP
's/POS
chief/NN
executive/NN
officer/NN
,/,
Frank/NNP
Biondi/NNP
,/,
and/CC
Winston/NNP
H./NNP
Cox/NNP
,/,
president/NN
of/IN
the/DT
Showtime/NNP
unit/NN
./.
``/``
This/DT
takes/VBZ
any/DT
question/NN
of/IN
Showtime/NNP
's/POS
viability/NN
and/CC
puts/VBZ
it/PRP
away/RB
once/RB
and/CC
for/IN
all/DT
,/,
''/''
Mr./NNP
Biondi/NNP
said/VBD
in/IN
a/DT
telephone/NN
interview/NN
./.
The/DT
fight/NN
between/IN
HBO/NNP
and/CC
Showtime/NNP
is/VBZ
particularly/RB
acrimonious/JJ
because/IN
Mr./NNP
Biondi/NNP
is/VBZ
the/DT
former/JJ
chief/NN
executive/NN
of/IN
HBO/NNP
,/,
and/CC
Mr./NNP
Cox/NNP
served/VBD
as/IN
chief/NN
of/IN
marketing/NN
for/IN
the/DT
service/NN
./.
They/PRP
were/VBD
both/DT
hired/VBN
by/IN
Sumner/NNP
Redstone/NNP
,/,
the/DT
Boston/NNP
billionaire/NN
who/WP
took/VBD
control/NN
of/IN
Viacom/NNP
three/CD
years/NNS
ago/IN
in/IN
a/DT
leveraged/JJ
buy-out/NN
./.
Time/NNP
Warner/NNP
has/VBZ
vigorously/RB
denied/VBN
all/DT
of/IN
Viacom/NNP
's/POS
allegations/NNS
./.
Boeing/NNP
Co./NNP
,/,
already/RB
struck/VBN
by/IN
its/PRP$
Machinists/NNS
union/NN
,/,
briefly/NN
called/VBD
off/IN
contract/NN
talks/NNS
with/IN
its/PRP$
engineers/NNS
and/CC
labeled/VBD
their/PRP$
demands/NNS
``/``
grossly/RB
excessive/JJ
./.
''/''
Later/RB
,/,
however/RB
,/,
the/DT
company/NN
agreed/VBD
to/TO
meet/VB
on/IN
Monday/NNP
with/IN
the/DT
Seattle/NNP
Professional/NNP
Engineering/NNP
Employees/NNPS
Association/NNP
after/IN
a/DT
federal/JJ
mediator/NN
intervened/VBD
,/,
according/VBG
to/TO
the/DT
union/NN
./.
A/DT
spokesman/NN
for/IN
the/DT
engineers/NNS
said/VBD
the/DT
company/NN
asked/VBD
the/DT
union/NN
to/TO
reduce/VB
its/PRP$
demands/NNS
,/,
which/WDT
included/VBD
a/DT
19/CD
%/NN
pay/NN
hike/NN
in/IN
the/DT
first/JJ
year/NN
and/CC
8/CD
%/NN
in/IN
the/DT
second/JJ
and/CC
third/JJ
years/NNS
./.
The/DT
union/NN
represents/VBZ
about/IN
28,000/CD
engineers/NNS
and/CC
technical/JJ
workers/NNS
./.
Its/PRP$
contract/NN
expires/VBZ
Dec./NNP
1/CD
./.
Meanwhile/RB
,/,
a/DT
federal/JJ
mediator/NN
is/VBZ
scheduled/VBN
to/TO
meet/VB
today/NN
with/IN
Boeing/NNP
officials/NNS
and/CC
representatives/NNS
of/IN
55,000/CD
striking/JJ
Machinists/NNS
./.
``/``
It/PRP
will/MD
take/VB
several/JJ
meetings/NNS
to/TO
resolve/VB
this/DT
,/,
''/''
said/VBD
a/DT
spokesman/NN
for/IN
the/DT
Machinists/NNS
union/NN
./.
``/``
We/PRP
do/VBP
n't/RB
want/VB
to/TO
bring/VB
back/RB
something/NN
the/DT
members/NNS
will/MD
reject/VB
./.
''/''
Machinists/NNS
already/RB
have/VBP
rejected/VBN
a/DT
package/NN
that/WDT
would/MD
have/VB
provided/VBN
a/DT
10/CD
%/NN
pay/NN
raise/NN
plus/CC
bonuses/NNS
over/IN
the/DT
three-year/JJ
life/NN
of/IN
the/DT
contract/NN
./.
It/PRP
also/RB
would/MD
have/VB
reduced/VBN
mandatory/JJ
overtime/NN
./.
Investor/NNP
Asher/NNP
Edelman/NNP
increased/VBD
his/PRP$
stake/NN
in/IN
Intelogic/NNP
Trace/NNP
Inc./NNP
and/CC
cleared/VBD
the/DT
way/NN
for/IN
additional/JJ
purchases/NNS
./.
It/PRP
was/VBD
n't/RB
clear/JJ
,/,
however/RB
,/,
whether/IN
the/DT
actions/NNS
were/VBD
related/VBN
to/TO
a/DT
battle/NN
between/IN
the/DT
corporate/JJ
raider/NN
and/CC
New/NNP
York/NNP
attorney/NN
Martin/NNP
Ackerman/NNP
for/IN
control/NN
of/IN
Datapoint/NNP
Corp./NNP
,/,
a/DT
San/NNP
Antonio/NNP
,/,
Texas-based/JJ
data-processing/NN
systems/NNS
maker/NN
./.
Intelogic/NNP
Trace/NNP
,/,
a/DT
computer/NN
services/NNS
company/NN
,/,
was/VBD
spun/VBN
off/IN
to/TO
Datapoint/NNP
holders/NNS
in/IN
1985/CD
,/,
after/IN
Mr./NNP
Edelman/NNP
gained/VBD
control/NN
./.
After/IN
Mr./NNP
Ackerman/NNP
announced/VBD
he/PRP
was/VBD
soliciting/VBG
consents/NNS
from/IN
shareholders/NNS
in/IN
order/NN
to/TO
wrest/VB
control/NN
of/IN
Datapoint/NNP
from/IN
Mr./NNP
Edelman/NNP
,/,
the/DT
corporate/JJ
raider/NN
purchased/VBD
30/CD
%/NN
of/IN
Datapoint/NNP
's/POS
shares/NNS
./.
In/IN
a/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
filing/NN
,/,
Mr./NNP
Edelman/NNP
said/VBD
from/IN
Sept./NNP
29/CD
to/TO
Oct./NNP
13/CD
,/,
he/PRP
acquired/VBD
309,500/CD
shares/NNS
of/IN
Intelogic/NNP
common/JJ
shares/NNS
for/IN
$/$
2.25/CD
to/TO
$/$
2.375/CD
each/DT
./.
The/DT
purchases/NNS
increased/VBD
his/PRP$
stake/NN
to/TO
16.2/CD
%/NN
of/IN
the/DT
shares/NNS
outstanding/JJ
./.
The/DT
filing/NN
also/RB
said/VBD
certain/JJ
provisions/NNS
which/WDT
apply/VBP
to/TO
persons/NNS
acquiring/VBG
20/CD
%/NN
or/CC
more/JJR
of/IN
Intelogic/NNP
common/JJ
stock/NN
,/,
were/VBD
waived/VBN
by/IN
Intelogic/NNP
for/IN
Mr./NNP
Edelman/NNP
,/,
who/WP
is/VBZ
chairman/NN
of/IN
the/DT
company/NN
./.
Mr./NNP
Edelman/NNP
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
The/DT
federal/JJ
government/NN
should/MD
make/VB
free/JJ
,/,
voluntary/JJ
testing/NN
for/IN
the/DT
AIDS/NNP
virus/NN
the/DT
cornerstone/NN
of/IN
an/DT
expanded/VBN
campaign/NN
to/TO
stop/VB
the/DT
spread/NN
of/IN
acquired/VBN
immune/JJ
deficiency/NN
syndrome/NN
,/,
the/DT
Hudson/NNP
Institute/NNP
recommended/VBD
./.
``/``
By/IN
encouraging/JJ
massive/JJ
,/,
routine/JJ
,/,
voluntary/JJ
testing/NN
we/PRP
can/MD
enable/VB
society/NN
to/TO
voluntarily/RB
segregate/VB
itself/PRP
sexually/RB
into/IN
two/CD
groups/NNS
:/:
those/DT
who/WP
carry/VBP
the/DT
virus/NN
and/CC
those/DT
who/WP
do/VBP
not/RB
,/,
''/''
the/DT
Indianapolis/NNP
research/NN
organization/NN
said/VBD
in/IN
a/DT
new/JJ
report/NN
./.
The/DT
report/NN
takes/VBZ
a/DT
more/RBR
alarmed/JJ
view/NN
of/IN
AIDS/NNP
and/CC
recommends/VBZ
a/DT
more/RBR
sweeping/JJ
response/NN
than/IN
many/JJ
other/JJ
analyses/NNS
./.
It/PRP
warns/VBZ
that/IN
the/DT
AIDS/NNP
epidemic/NN
``/``
may/MD
reduce/VB
the/DT
rate/NN
of/IN
growth/NN
of/IN
the/DT
work/NN
force/NN
,/,
curb/VB
productivity/NN
gains/NNS
and/CC
slow/VB
economic/JJ
growth/NN
./.
''/''
It/PRP
contends/VBZ
that/IN
current/JJ
government/NN
policy/NN
is/VBZ
failing/VBG
to/TO
stem/VB
the/DT
AIDS/NNP
epidemic/NN
because/IN
it/PRP
suggests/VBZ
the/DT
use/NN
of/IN
condoms/NNS
can/MD
make/VB
sex/NN
``/``
safe/JJ
./.
''/''
But/CC
the/DT
report/NN
says/VBZ
:/:
``/``
The/DT
only/RB
safe/JJ
sex/NN
is/VBZ
sex/NN
between/IN
uninfected/JJ
partners/NNS
,/,
''/''
and/CC
testing/NN
is/VBZ
the/DT
only/JJ
way/NN
to/TO
learn/VB
of/IN
infection/NN
./.
Hudson/NNP
's/POS
researchers/NNS
estimated/VBD
that/IN
it/PRP
would/MD
cost/VB
less/RBR
than/IN
$/$
650/CD
million/CD
a/DT
year/NN
to/TO
test/VB
the/DT
entire/JJ
population/NN
between/IN
the/DT
ages/NNS
of/IN
12/CD
and/CC
65/CD
years/NNS
old/JJ
./.
In/IN
addition/NN
,/,
the/DT
report/NN
recommends/VBZ
that/IN
federal/JJ
and/CC
state/NN
governments/NNS
provide/VB
free/JJ
treatment/NN
to/TO
all/DT
who/WP
test/VBP
positive/JJ
./.
An/DT
unexpectedly/RB
sharp/JJ
widening/NN
in/IN
the/DT
U.S./NNP
trade/NN
gap/NN
for/IN
August/NNP
dragged/VBD
the/DT
dollar/NN
lower/JJR
Tuesday/NNP
,/,
but/CC
profit-taking/NNS
on/IN
short/JJ
positions/NNS
helped/VBD
the/DT
currency/NN
rebound/NN
to/TO
close/VB
mixed/VBN
against/IN
major/JJ
counterparts/NNS
./.
While/IN
the/DT
market/NN
kept/VBD
careful/JJ
tabs/NNS
on/IN
Wall/NNP
Street/NNP
's/POS
gyrations/NNS
,/,
it/PRP
shrugged/VBD
off/IN
a/DT
modest/JJ
downturn/NN
in/IN
equities/NNS
to/TO
bid/VB
the/DT
dollar/NN
well/RB
above/IN
the/DT
day/NN
's/POS
lows/NNS
./.
Soon/RB
after/IN
the/DT
release/NN
of/IN
the/DT
U.S./NNP
trade/NN
figures/NNS
,/,
the/DT
dollar/NN
plunged/VBD
to/TO
an/DT
intraday/NN
low/JJ
of/IN
140.95/CD
yen/NN
./.
It/PRP
also/RB
declined/VBD
against/IN
the/DT
mark/NN
but/CC
did/VBD
n't/RB
reach/VB
its/PRP$
intraday/NN
low/JJ
of/IN
1.8435/CD
marks/NNS
until/IN
two/CD
hours/NNS
later/RB
./.
The/DT
unit/NN
stabilized/VBD
about/IN
midday/NN
New/NNP
York/NNP
time/NN
at/IN
around/IN
1.85/CD
marks/NNS
and/CC
141/CD
yen/NN
,/,
prompting/VBG
unconfirmed/JJ
rumors/NNS
that/IN
the/DT
U.S./NNP
Federal/NNP
Reserve/NNP
had/VBD
intervened/VBN
to/TO
blunt/VB
the/DT
unit/NN
's/POS
tumble/NN
./.
The/DT
dollar/NN
finished/VBD
at/IN
its/PRP$
intraday/NN
highs/NNS
./.
Dealers/NNS
noted/VBD
that/IN
the/DT
foreign/JJ
exchange/NN
market/NN
's/POS
initial/JJ
bearish/JJ
reaction/NN
to/TO
the/DT
U.S./NNP
trade/NN
figures/NNS
was/VBD
tempered/VBN
later/RB
by/IN
a/DT
``/``
calmer/JJR
reassessment/NN
of/IN
the/DT
data/NNS
./.
''/''
The/DT
U.S./NNP
Commerce/NNP
Department/NNP
reported/VBD
a/DT
$/$
10.77/CD
billion/CD
deficit/NN
in/IN
August/NNP
,/,
compared/VBN
with/IN
a/DT
revised/VBN
July/NNP
deficit/NN
of/IN
$/$
8.24/CD
billion/CD
./.
Economists/NNS
had/VBD
expected/VBN
a/DT
$/$
9.1/CD
billion/CD
gap/NN
./.
The/DT
August/NNP
figure/NN
reflected/VBD
a/DT
6.4/CD
%/NN
rise/NN
in/IN
imports/NNS
and/CC
a/DT
0.2/CD
%/NN
drop/NN
in/IN
exports/NNS
./.
Marc/NNP
M./NNP
Goloven/NNP
,/,
an/DT
economist/NN
with/IN
Manufacturers/NNPS
Hanover/NNP
Trust/NNP
in/IN
New/NNP
York/NNP
,/,
said/VBD
that/IN
while/IN
the/DT
figures/NNS
appear/VBP
to/TO
indicate/VB
a/DT
sadly/RB
deteriorating/VBG
U.S./NNP
trade/NN
performance/NN
,/,
there/EX
's/VBZ
still/RB
enough/RB
positive/JJ
news/NN
in/IN
the/DT
data/NNS
to/TO
justify/VB
buying/VBG
dollars/NNS
./.
He/PRP
said/VBD
that/IN
while/IN
the/DT
U.S./NNP
trade/NN
gap/NN
with/IN
Canada/NNP
has/VBZ
widened/VBN
significantly/RB
,/,
the/DT
trade/NN
deficit/NN
with/IN
Western/NNP
Europe/NNP
and/CC
Japan/NNP
continues/VBZ
to/TO
narrow/VB
./.
And/CC
he/PRP
added/VBD
that/IN
manufactured/VBN
goods/NNS
exports/NNS
are/VBP
still/RB
rising/VBG
./.
The/DT
dollar/NN
's/POS
near-term/JJ
path/NN
remains/VBZ
foggy/JJ
,/,
according/VBG
to/TO
currencny/NN
analysts/NNS
,/,
who/WP
characterize/VBP
the/DT
market/NN
as/IN
``/``
bewildering/VBG
./.
''/''
In/IN
late/JJ
New/NNP
York/NNP
trading/NN
yesterday/NN
,/,
the/DT
dollar/NN
was/VBD
quoted/VBN
at/IN
1.8667/CD
marks/NNS
,/,
down/IN
from/IN
1.8685/CD
marks/NNS
late/JJ
Monday/NNP
,/,
and/CC
at/IN
142.75/CD
yen/NN
,/,
up/IN
from/IN
141.85/CD
yen/NN
late/JJ
Monday/NNP
./.
Sterling/NN
was/VBD
unchanged/JJ
at/IN
$/$
1.5753/CD
./.
In/IN
Tokyo/NNP
Wednesday/NNP
,/,
the/DT
U.S./NNP
currency/NN
opened/VBD
for/IN
trading/VBG
at/IN
142.55/CD
yen/NN
,/,
unchanged/JJ
from/IN
Tuesday/NNP
's/POS
Tokyo/NNP
close/NN
./.
Later/RB
,/,
the/DT
U.S./NNP
currency/NN
fell/VBD
to/TO
about/IN
142.25/CD
yen/NN
on/IN
news/NN
reports/NNS
of/IN
the/DT
San/NNP
Francisco/NNP
earthquake/NN
./.
Some/DT
analysts/NNS
remain/VBP
bullish/JJ
and/CC
point/NN
out/IN
that/IN
the/DT
dollar/NN
continues/VBZ
to/TO
be/VB
well/RB
bid/VBN
despite/IN
key/JJ
rate/NN
increases/NNS
in/IN
Europe/NNP
and/CC
Japan/NNP
,/,
several/JJ
weeks/NNS
of/IN
aggressive/JJ
dollar/NN
sales/NNS
by/IN
the/DT
world/NN
central/JJ
banks/NNS
--/:
some/DT
traders/NNS
estimate/VBP
that/IN
the/DT
barrage/NN
of/IN
sales/NNS
topped/VBD
$/$
12/CD
billion/CD
--/:
and/CC
a/DT
190-point/JJ
plunge/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
They/PRP
note/VBP
that/IN
the/DT
U.S./NNP
unit/NN
is/VBZ
trading/VBG
at/IN
the/DT
upper/JJ
end/NN
of/IN
the/DT
presumed/VBN
target/NN
zones/NNS
established/VBN
by/IN
the/DT
Group/NNP
of/IN
Seven/CD
trading/NN
partners/NNS
./.
The/DT
G-7/NN
comprises/VBZ
West/NNP
Germany/NNP
,/,
the/DT
U.S./NNP
,/,
France/NNP
,/,
the/DT
U.K./NNP
,/,
Italy/NNP
,/,
Canada/NNP
and/CC
Japan/NNP
./.
The/DT
so-called/JJ
Louvre/NNP
accord/NN
was/VBD
seen/VBN
to/TO
have/VB
set/VBN
ranges/NNS
of/IN
1.70/CD
marks/NNS
to/TO
1.90/CD
marks/NNS
and/CC
120/CD
yen/NN
to/TO
140/CD
yen/NN
./.
They/PRP
say/VBP
that/IN
the/DT
recent/JJ
injection/NN
of/IN
liquidity/NN
into/IN
the/DT
U.S./NNP
banking/NN
system/NN
has/VBZ
been/VBN
modest/JJ
,/,
and/CC
they/PRP
do/VBP
n't/RB
anticipate/VB
significant/JJ
easing/NN
by/IN
the/DT
U.S./NNP
Federal/NNP
Reserve/NNP
./.
The/DT
Fed/NNP
arranged/VBD
$/$
1.5/CD
billion/CD
of/IN
customer/NN
repurchase/VBD
agreements/NNS
Tuesday/NNP
,/,
the/DT
second/JJ
repurchase/JJ
agreement/NN
in/IN
two/CD
days/NNS
./.
The/DT
move/NN
,/,
which/WDT
injects/VBZ
capital/NN
into/IN
the/DT
system/NN
,/,
is/VBZ
seen/VBN
as/IN
an/DT
effort/NN
to/TO
reassure/VB
the/DT
finanicial/JJ
markets/NNS
that/IN
the/DT
U.S./NNP
central/JJ
bank/NN
is/VBZ
ready/JJ
to/TO
provide/VB
the/DT
ample/JJ
liquidity/NN
./.
But/CC
other/JJ
analysts/NNS
contend/VBP
that/IN
while/IN
the/DT
Fed/NNP
's/POS
move/NN
to/TO
loosen/VB
credit/NN
has/VBZ
n't/RB
been/VBN
aggressive/JJ
,/,
it/PRP
nevertheless/RB
sends/VBZ
a/DT
clear/JJ
signal/NN
that/IN
,/,
at/IN
least/JJS
for/IN
now/RB
,/,
the/DT
Fed/NNP
has/VBZ
relaxed/VBN
its/PRP$
grip/NN
on/IN
credit/NN
./.
They/PRP
add/VBP
that/IN
the/DT
Fed/NNP
has/VBZ
allowed/VBN
the/DT
key/JJ
federal/JJ
funds/NNS
interest/NN
rate/NN
to/TO
dip/VB
to/TO
about/IN
8/CD
5\/8/CD
%/NN
from/IN
its/PRP$
levels/NNS
of/IN
just/RB
below/IN
9/CD
%/NN
last/JJ
week/NN
./.
The/DT
federal/JJ
funds/NNS
rate/NN
is/VBZ
the/DT
overnight/JJ
lending/NN
rate/NN
that/IN
banks/NNS
charge/VBP
each/DT
other/JJ
./.
Market/NN
participants/NNS
said/VBD
that/IN
the/DT
mark/NN
continues/VBZ
to/TO
post/VB
the/DT
most/RBS
significant/JJ
gains/NNS
against/IN
the/DT
dollar/NN
./.
On/IN
the/DT
Commodity/NNP
Exchange/NNP
in/IN
New/NNP
York/NNP
,/,
gold/NN
for/IN
current/JJ
delivery/NN
settled/VBN
at/IN
$/$
367.40/CD
an/DT
ounce/NN
,/,
up/IN
10/CD
cents/NNS
./.
Estimated/VBN
volume/NN
was/VBD
a/DT
moderate/JJ
3.5/CD
million/CD
ounces/NNS
./.
In/IN
early/JJ
trading/NN
in/IN
Hong/NNP
Kong/NNP
Wednesday/NNP
,/,
gold/NN
was/VBD
at/IN
$/$
366.55/CD
an/DT
ounce/NN
./.
National/NNP
Semiconductor/NNP
Corp./NNP
said/VBD
it/PRP
settled/VBD
a/DT
four-year-old/JJ
patent/NN
infringement/NN
case/NN
against/IN
Linear/NNP
Technology/NNP
Corp./NNP
by/IN
accepting/VBG
a/DT
$/$
3/CD
million/CD
payment/NN
from/IN
Linear/NNP
in/IN
exchange/NN
for/IN
granting/VBG
Linear/NNP
irrevocable/JJ
licenses/NNS
for/IN
all/DT
products/NNS
involved/VBN
./.
The/DT
two/CD
companies/NNS
also/RB
agreed/VBD
to/TO
settle/VB
any/DT
future/JJ
property/NN
rights/NNS
issues/NNS
over/IN
the/DT
next/JJ
10/CD
years/NNS
through/IN
binding/VBG
arbitration/NN
,/,
both/DT
companies/NNS
said/VBD
./.
The/DT
products/NNS
are/VBP
so-called/JJ
analog/JJ
integrated/VBN
circuits/NNS
that/WDT
have/VBP
applications/NNS
in/IN
the/DT
consumer/NN
electronics/NNS
,/,
automobile/NN
and/CC
electronic/JJ
instrumentation/NN
markets/NNS
./.
Linear/NNP
Technology/NNP
,/,
Milpitas/NNP
,/,
Calif./NNP
,/,
called/VBD
the/DT
settlement/NN
``/``
positive/JJ
,/,
''/''
since/IN
products/NNS
covered/VBN
by/IN
the/DT
disputed/VBN
patents/NNS
account/VBP
for/IN
about/IN
20/CD
%/NN
of/IN
its/PRP$
annual/JJ
sales/NNS
./.
The/DT
electronics/NNS
concern/NN
said/VBD
it/PRP
already/RB
has/VBZ
paid/VBN
$/$
2/CD
million/CD
of/IN
the/DT
settlement/NN
to/TO
National/NNP
Semiconductor/NNP
,/,
Santa/NNP
Clara/NNP
,/,
Calif./NNP
,/,
and/CC
will/MD
pay/VB
the/DT
remaining/VBG
$/$
1/CD
million/CD
in/IN
equal/JJ
installments/NNS
over/IN
the/DT
next/JJ
eight/CD
quarters/NNS
./.
The/DT
payments/NNS
are/VBP
n't/RB
expected/VBN
to/TO
have/VB
an/DT
impact/NN
on/IN
coming/VBG
operating/VBG
results/NNS
,/,
Linear/NNP
added/VBD
./.
NBC/NNP
's/POS
winning/VBG
streak/NN
has/VBZ
been/VBN
canceled/VBN
./.
The/DT
National/NNP
Broadcasting/NNP
Co./NNP
,/,
a/DT
unit/NN
of/IN
General/NNP
Electric/NNP
Co./NNP
,/,
had/VBD
its/PRP$
record-breaking/JJ
68-week/JJ
reign/NN
as/IN
the/DT
prime-time/JJ
ratings/NNS
leader/NN
snapped/VBD
yesterday/NN
by/IN
ABC-TV/NNP
,/,
a/DT
subsidiary/NN
of/IN
Capital/NNP
Cities\/ABC/NNP
Inc/NNP
./.
In/IN
the/DT
ratings/NNS
compiled/VBN
by/IN
the/DT
A.C./NNP
Nielsen/NNP
Co./NNP
,/,
ABC/NNP
,/,
which/WDT
broadcast/VBD
the/DT
World/NNP
Series/NNP
,/,
topped/VBD
the/DT
competition/NN
with/IN
a/DT
14.8/CD
rating/NN
and/CC
25/CD
share/NN
./.
NBC/NNP
was/VBD
second/JJ
with/IN
a/DT
13.9/CD
rating/NN
and/CC
24/CD
share/NN
followed/VBN
by/IN
CBS/NNP
Inc./NNP
's/POS
television/NN
network/NN
with/IN
a/DT
12.5/CD
rating/NN
and/CC
21/CD
share/NN
./.
A/DT
ratings/NNS
point/NN
represents/VBZ
904,000/CD
television/NN
households/NNS
;/:
shares/NNS
indicate/VBP
the/DT
percentage/NN
of/IN
sets/NNS
in/IN
use/NN
./.
The/DT
first/JJ
two/CD
games/NNS
of/IN
the/DT
World/NNP
Series/NNP
between/IN
the/DT
Oakland/NNP
Athletics/NNP
and/CC
San/NNP
Francisco/NNP
Giants/NNPS
did/VBD
n't/RB
finish/VB
in/IN
the/DT
top/JJ
10/CD
;/:
instead/RB
they/PRP
landed/VBD
in/IN
16th/JJ
and/CC
18th/JJ
place/NN
./.
The/DT
highest-rated/JJ
show/NN
continues/VBZ
to/TO
be/VB
ABC/NNP
's/POS
``/``
Roseanne/NNP
./.
''/''
NBC/NNP
had/VBD
five/CD
of/IN
the/DT
top/JJ
10/CD
shows/NNS
;/:
ABC/NNP
had/VBD
four/CD
and/CC
CBS/NNP
had/VBD
one/CD
./.
CBS/NNP
held/VBD
the/DT
previous/JJ
record/NN
for/IN
consecutive/JJ
No./NNP
1/CD
victories/NNS
--/:
46/CD
weeks/NNS
--/:
during/IN
the/DT
1962-63/CD
season/NN
./.
Procter/NNP
&/CC
Gamble/NNP
Co./NNP
,/,
Cincinnati/NNP
,/,
expanding/VBG
its/PRP$
presence/NN
in/IN
the/DT
food/NN
service/NN
market/NN
,/,
said/VBD
it/PRP
acquired/VBD
Maryland/NNP
Club/NNP
Foods/NNPS
,/,
a/DT
coffee/NN
supplier/NN
,/,
from/IN
an/DT
investor/NN
group/NN
led/VBN
by/IN
F./NNP
Philip/NNP
Handy/NNP
of/IN
Winter/NNP
Park/NNP
,/,
Fla/NNP
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Houston-based/JJ
Maryland/NNP
Club/NNP
Foods/NNPS
,/,
which/WDT
had/VBD
sales/NNS
of/IN
about/IN
$/$
200/CD
million/CD
last/JJ
year/NN
,/,
sells/VBZ
coffee/NN
under/IN
the/DT
Maryland/NNP
Club/NNP
and/CC
Butter-Nut/NNP
brands/NNS
to/TO
restaurants/NNS
,/,
hotels/NNS
,/,
offices/NNS
and/CC
airlines/NNS
./.
The/DT
acquisition/NN
``/``
gives/VBZ
us/PRP
additional/JJ
production/NN
capacity/NN
for/IN
the/DT
food/NN
service/NN
coffee/NN
business/NN
and/CC
a/DT
stronger/JJR
distribution/NN
network/NN
,/,
''/''
a/DT
P&G/NNP
spokesman/NN
said/VBD
./.
P&G/NNP
already/RB
sells/VBZ
its/PRP$
Folgers/NNP
ground/NN
roast/NN
coffee/NN
to/TO
food/NN
service/NN
concerns/NNS
,/,
but/CC
not/RB
to/TO
as/RB
many/JJ
markets/NNS
as/IN
Maryland/NNP
Club/NNP
./.
For/IN
example/NN
,/,
P&G/NNP
up/IN
until/IN
now/RB
has/VBZ
n't/RB
sold/VBN
coffee/NN
to/TO
airlines/NNS
and/CC
does/VBZ
only/RB
limited/VBN
business/NN
with/IN
hotels/NNS
and/CC
large/JJ
restaurant/NN
chains/NNS
./.
Maryland/NNP
Club/NNP
also/RB
distributes/VBZ
tea/NN
,/,
which/WDT
fits/VBZ
well/RB
with/IN
P&G/NNP
's/POS
Tender/NNP
Leaf/NNP
brand/NN
,/,
and/CC
hot/JJ
cocoa/NN
products/NNS
./.
The/DT
company/NN
said/VBD
the/DT
acquisition/NN
has/VBZ
been/VBN
completed/VBN
and/CC
reviewed/VBN
by/IN
the/DT
Federal/NNP
Trade/NNP
Commission/NNP
./.
The/DT
purchase/NN
includes/VBZ
a/DT
coffee-roasting/JJ
plant/NN
in/IN
Omaha/NNP
,/,
Neb./NNP
,/,
and/CC
a/DT
leased/VBN
facility/NN
in/IN
Houston/NNP
./.
MACMILLAN/NNP
BLOEDEL/NNP
Ltd./NNP
said/VBD
it/PRP
borrowed/VBD
215/CD
million/CD
Dutch/JJ
guilders/NNS
US$/$
102/CD
million/CD
a/DT
group/NN
of/IN
Dutch/JJ
institutional/JJ
investors/NNS
./.
MacMillan/NNP
Bloedel/NNP
,/,
a/DT
Vancouver/NNP
,/,
British/NNP
Columbia/NNP
,/,
forest/NN
products/NNS
concern/NN
,/,
said/VBD
the/DT
8.1/CD
%/NN
loan/NN
is/VBZ
due/JJ
Oct./NNP
16/CD
,/,
1996/CD
./.
Funds/NNS
will/MD
be/VB
used/VBN
to/TO
repay/VB
existing/VBG
short-term/JJ
debt/NN
and/CC
to/TO
finance/VB
capital/NN
spending/NN
,/,
it/PRP
said/VBD
./.
President/NNP
Bush/NNP
will/MD
veto/VB
a/DT
bill/NN
funding/VBG
the/DT
Departments/NNPS
of/IN
Labor/NNP
,/,
Education/NNP
and/CC
Health/NNP
and/CC
Human/NNP
Services/NNPS
because/IN
it/PRP
would/MD
allow/VB
federal/JJ
funding/NN
of/IN
abortions/NNS
for/IN
victims/NNS
of/IN
rape/NN
and/CC
incest/NN
,/,
the/DT
White/NNP
House/NNP
said/VBD
./.
Mr./NNP
Bush/NNP
had/VBD
threatened/VBN
a/DT
veto/NN
previously/RB
./.
But/CC
he/PRP
put/VBD
off/IN
a/DT
firm/JJ
decision/NN
while/IN
his/PRP$
aides/NNS
and/CC
legislators/NNS
searched/VBD
for/IN
a/DT
compromise/NN
that/WDT
would/MD
tighten/VB
requirements/NNS
for/IN
such/JJ
abortions/NNS
in/IN
a/DT
way/NN
acceptable/JJ
to/TO
the/DT
president/NN
./.
White/NNP
House/NNP
Press/NNP
Secretary/NNP
Marlin/NNP
Fitzwater/NNP
said/VBD
negotiations/NNS
between/IN
Bush/NNP
aides/NNS
and/CC
lawmakers/NNS
ended/VBD
Monday/NNP
without/IN
success/NN
./.
Most/JJS
lawmakers/NNS
think/VBP
it/PRP
will/MD
be/VB
extremely/RB
difficult/JJ
for/IN
Mr./NNP
Bush/NNP
's/POS
opponents/NNS
on/IN
the/DT
abortion/NN
issue/NN
to/TO
round/VB
up/IN
the/DT
votes/NNS
needed/VBN
to/TO
override/VB
the/DT
veto/NN
./.
But/CC
there/EX
still/RB
may/MD
be/VB
prolonged/VBN
debate/NN
and/CC
political/JJ
maneuvering/NN
that/WDT
holds/VBZ
up/IN
the/DT
$/$
156.7/CD
billion/CD
funding/NN
bill/NN
for/IN
the/DT
fiscal/JJ
year/NN
that/WDT
began/VBD
Oct./NNP
1/CD
./.
Mr./NNP
Bush/NNP
has/VBZ
said/VBN
he/PRP
personally/RB
approves/VBZ
of/IN
abortions/NNS
in/IN
the/DT
cases/NNS
of/IN
rape/NN
,/,
incest/NN
and/CC
danger/NN
to/TO
the/DT
life/NN
of/IN
the/DT
mother/NN
./.
But/CC
he/PRP
has/VBZ
opposed/VBN
Medicaid/NNP
funding/NN
of/IN
abortions/NNS
for/IN
poor/JJ
women/NNS
who/WP
say/VBP
they/PRP
are/VBP
victims/NNS
of/IN
rape/NN
and/CC
incest/NN
,/,
arguing/VBG
that/IN
those/DT
exceptions/NNS
are/VBP
enforced/VBN
so/RB
loosely/RB
that/IN
they/PRP
open/VBP
the/DT
way/NN
for/IN
abortions/NNS
for/IN
other/JJ
women/NNS
./.
NEWSPAPERS/NNPS
:/:
Media/NNP
General/NNP
Inc./NNP
intends/VBZ
to/TO
sell/VB
two/CD
of/IN
its/PRP$
West/NNP
Coast/NNP
weekly/JJ
newspaper/NN
chains/NNS
,/,
Golden/NNP
West/NNP
Publishing/NNP
Inc./NNP
and/CC
Highlander/NNP
Publications/NNPS
,/,
which/WDT
together/RB
comprise/VBP
31/CD
papers/NNS
./.
Media/NNP
General/NNP
said/VBD
it/PRP
has/VBZ
had/VBN
inquiries/NNS
from/IN
potential/JJ
buyers/NNS
and/CC
expects/VBZ
to/TO
complete/VB
a/DT
sale/NN
in/IN
1989/CD
./.
It/PRP
would/MD
n't/RB
discuss/VB
a/DT
price/NN
./.
Lee/NNP
Dirks/NNP
&/CC
Associates/NNPS
is/VBZ
to/TO
sell/VB
the/DT
chains/NNS
./.
J.P./NNP
Morgan/NNP
&/CC
Co./NNP
,/,
New/NNP
York/NNP
,/,
will/MD
help/VB
the/DT
statutory/JJ
managers/NNS
of/IN
DFC/NNP
New/NNP
Zealand/NNP
Ltd./NNP
to/TO
evaluate/VB
the/DT
failed/VBN
investment/NN
bank/NN
's/POS
condition/NN
./.
Earlier/RBR
this/DT
month/NN
,/,
the/DT
Reserve/NNP
Bank/NNP
of/IN
New/NNP
Zealand/NNP
,/,
the/DT
country/NN
's/POS
central/JJ
bank/NN
,/,
appointed/VBD
the/DT
managers/NNS
to/TO
run/VB
the/DT
investment/NN
bank/NN
and/CC
pay/NN
creditors/NNS
./.
DFC/NNP
asked/VBD
the/DT
central/JJ
bank/NN
to/TO
appoint/VB
managers/NNS
after/IN
it/PRP
revised/VBD
loan-loss/NN
provisions/NNS
to/TO
around/IN
the/DT
same/JJ
level/NN
of/IN
shareholders/NNS
'/POS
funds/NNS
of/IN
180/CD
million/CD
New/NNP
Zealand/NNP
dollars/NNS
US$/$
105.4/CD
million/CD
DFC/NNP
is/VBZ
held/VBN
80/CD
%/NN
by/IN
National/NNP
Provident/NNP
Fund/NNP
,/,
New/NNP
Zealand/NNP
's/POS
largest/JJS
pension/NN
fund/NN
,/,
and/CC
20/CD
%/NN
by/IN
Salomon/NNP
Brothers/NNPS
Inc./NNP
,/,
the/DT
investment-bank/JJ
and/CC
securities-firm/JJ
subsidiary/NN
of/IN
Salomon/NNP
Inc./NNP
in/IN
New/NNP
York/NNP
./.
A/DT
spokeswoman/NN
for/IN
J.P./NNP
Morgan/NNP
,/,
parent/NN
of/IN
the/DT
bank/NN
Morgan/NNP
Guaranty/NNP
Trust/NNP
Co./NNP
,/,
confirmed/VBD
its/PRP$
appointment/NN
to/TO
assist/VB
the/DT
managers/NNS
but/CC
declined/VBD
to/TO
elaborate/VB
./.
The/DT
managers/NNS
said/VBD
in/IN
a/DT
brief/JJ
statement/NN
yesterday/NN
that/DT
Morgan/NNP
will/MD
help/VB
evaluate/VB
DFC/NNP
's/POS
position/NN
and/CC
help/VB
determine/VB
alternatives/NNS
./.
The/DT
managers/NNS
do/VBP
n't/RB
expect/VB
to/TO
complete/VB
the/DT
evaluation/NN
until/IN
Nov./NNP
30/CD
./.
An/DT
experimental/JJ
vaccine/NN
can/MD
alter/VB
the/DT
immune/JJ
response/NN
of/IN
people/NNS
infected/VBN
with/IN
the/DT
AIDS/NNP
virus/NN
,/,
a/DT
prominent/JJ
U.S./NNP
scientist/NN
said/VBD
./.
However/RB
,/,
that/DT
does/VBZ
n't/RB
mean/VB
they/PRP
can/MD
benefit/VB
from/IN
the/DT
vaccine/NN
./.
Its/PRP$
effectiveness/NN
ca/MD
n't/RB
be/VB
determined/VBN
until/IN
a/DT
large/JJ
clinical/JJ
trial/NN
is/VBZ
undertaken/VBN
by/IN
the/DT
Army/NNP
in/IN
January/NNP
,/,
according/VBG
to/TO
Robert/NNP
Redfield/NNP
,/,
chief/NN
of/IN
acquired/VBN
immune/JJ
deficiency/NN
syndrome/NN
research/NN
at/IN
Walter/NNP
Reed/NNP
Army/NNP
Institute/NNP
of/IN
Research/NNP
./.
Dr./NNP
Redfield/NNP
's/POS
report/NN
on/IN
early/JJ
experiments/NNS
using/VBG
an/DT
AIDS/NNP
vaccine/NN
made/VBD
by/IN
MicroGeneSys/NNP
Inc./NNP
of/IN
West/NNP
Haven/NNP
,/,
Conn./NNP
,/,
came/VBD
at/IN
a/DT
meeting/NN
of/IN
AIDS/NNP
vaccine/NN
researchers/NNS
in/IN
Florida/NNP
late/JJ
Monday/NNP
./.
The/DT
vaccine/NN
,/,
VaxSyn/NNP
HIV-1/NNP
,/,
has/VBZ
been/VBN
safely/RB
given/VBN
to/TO
14/CD
people/NNS
,/,
some/DT
of/IN
whom/WP
are/VBP
experiencing/VBG
substantial/JJ
increases/NNS
in/IN
certain/JJ
antibodies/NNS
./.
``/``
The/DT
conventional/JJ
wisdom/NN
used/VBN
to/TO
be/VB
that/IN
you/PRP
could/MD
n't/RB
modify/VB
the/DT
immune/JJ
response/NN
of/IN
an/DT
infected/JJ
individual/NN
''/''
by/IN
innoculating/VBG
them/PRP
with/IN
synthetic/JJ
viral/JJ
proteins/NNS
,/,
Dr./NNP
Redfield/NNP
said/VBD
./.
``/``
We/PRP
've/VBP
demonstrated/VBN
that/IN
you/PRP
can/MD
./.
''/''
He/PRP
said/VBD
certain/JJ
volunteers/NNS
developed/VBD
kinds/NNS
of/IN
antibodies/NNS
associated/VBN
with/IN
early/JJ
AIDS/NNP
./.
Other/JJ
antibodies/NNS
sparked/VBN
by/IN
the/DT
preparation/NN
are/VBP
of/IN
a/DT
sort/NN
rarely/RB
present/JJ
in/IN
large/JJ
quantities/NNS
in/IN
infected/JJ
or/CC
ill/JJ
individuals/NNS
,/,
he/PRP
added/VBD
./.
One/CD
of/IN
the/DT
mysteries/NNS
of/IN
AIDS/NNP
remains/VBZ
why/WRB
infected/JJ
people/NNS
produce/VBP
large/JJ
quantities/NNS
of/IN
antibodies/NNS
,/,
but/CC
deteriorate/VBP
nonetheless/RB
./.
Cross/NNP
&/CC
Trecker/NNP
Corp./NNP
said/VBD
it/PRP
reached/VBD
an/DT
agreement/NN
to/TO
sell/VB
its/PRP$
Wiedemann/NNP
division/NN
to/TO
recently/RB
created/VBN
Murata/NNP
Wiedemann/NNP
Inc./NNP
,/,
a/DT
U.S./NNP
affiliate/NN
of/IN
Murata/NNP
Machinery/NNP
Ltd./NNP
of/IN
Kyoto/NNP
,/,
Japan/NNP
./.
The/DT
agreement/NN
also/RB
includes/VBZ
the/DT
purchase/NN
of/IN
Cross/NNP
&/CC
Trecker/NNP
's/POS
Warner/NNP
&/CC
Swasey/NNP
Switzerland/NNP
AG/NNP
unit/NN
by/IN
a/DT
European/JJ
affiliate/NN
of/IN
Murata/NNP
Machinery/NNP
./.
Cross/NNP
&/CC
Trecker/NNP
is/VBZ
also/RB
selling/VBG
its/PRP$
equity/NN
interest/NN
in/IN
a/DT
Japanese/JJ
joint/NN
venture/NN
,/,
Murata/NNP
Warner/NNP
Swasey/NNP
,/,
to/TO
Murata/NNP
Machinery/NNP
./.
Cross/NNP
&/CC
Trecker/NNP
,/,
a/DT
Bloomfield/NNP
Hills/NNPS
,/,
Mich./NNP
,/,
machine-tool/JJ
maker/NN
,/,
said/VBD
the/DT
net/JJ
sales/NNS
price/NN
of/IN
the/DT
total/JJ
transaction/NN
is/VBZ
$/$
24/CD
million/CD
./.
The/DT
Wiedemann/NNP
division/NN
was/VBD
one/CD
of/IN
three/CD
businesses/NNS
put/VBN
up/IN
for/IN
sale/NN
in/IN
Cross/NNP
&/CC
Trecker/NNP
's/POS
restructuring/VBG
program/NN
announced/VBN
in/IN
July/NNP
./.
Cross/NNP
&/CC
Trecker/NNP
said/VBD
negotiations/NNS
are/VBP
under/IN
way/NN
for/IN
the/DT
sale/NN
of/IN
another/DT
company/NN
,/,
RobertsCorp/NNP
./.
The/DT
average/JJ
interest/NN
rate/NN
fell/VBD
to/TO
8.292/CD
%/NN
at/IN
Citicorp/NNP
's/POS
$/$
50/CD
million/CD
weekly/JJ
auction/NN
of/IN
91-day/JJ
commercial/JJ
paper/NN
,/,
or/CC
corporate/JJ
IOUs/NNS
,/,
from/IN
8.483/CD
%/NN
at/IN
last/JJ
week/NN
's/POS
sale/NN
./.
Bids/NNS
totaling/VBG
$/$
465/CD
million/CD
were/VBD
submitted/VBN
,/,
and/CC
accepted/VBN
bids/NNS
were/VBD
at/IN
8.292/CD
%/NN
./.
Citicorp/NNP
also/RB
said/VBD
that/IN
the/DT
average/JJ
rate/NN
fell/VBD
to/TO
7.986/CD
%/NN
at/IN
its/PRP$
$/$
50/CD
million/CD
auction/NN
of/IN
182-day/JJ
commercial/JJ
paper/NN
from/IN
8.1255/CD
%/NN
at/IN
last/JJ
week/NN
's/POS
sale/NN
./.
Bids/NNS
totaling/VBG
$/$
415/CD
million/CD
were/VBD
submitted/VBN
,/,
and/CC
accepted/VBN
bids/NNS
were/VBD
at/IN
7.986/CD
%/NN
./.
The/DT
bank/NN
holding/VBG
company/NN
will/MD
auction/VB
another/DT
$/$
50/CD
million/CD
of/IN
commercial/JJ
paper/NN
in/IN
each/DT
maturity/NN
next/IN
Tuesday/NNP
./.
Matra/NNP
S.A./NNP
reported/VBD
its/PRP$
1989/CD
first-half/NN
profit/NN
soared/VBD
88/CD
%/NN
,/,
and/CC
indicated/VBD
that/IN
its/PRP$
previous/JJ
estimate/NN
of/IN
a/DT
50/CD
%/NN
rise/NN
in/IN
earnings/NNS
for/IN
all/DT
of/IN
1989/CD
will/MD
be/VB
exceeded/VBN
by/IN
a/DT
wide/JJ
margin/NN
./.
The/DT
French/JJ
electronics/NNS
and/CC
defense/NN
group/NN
said/VBD
attributable/JJ
consolidated/VBN
net/JJ
profit/NN
for/IN
the/DT
first/JJ
six/CD
months/NNS
of/IN
1989/CD
totaled/VBD
244/CD
million/CD
francs/NNS
$/$
38.4/CD
million/CD
130/CD
million/CD
francs/NNS
$/$
20.5/CD
million/CD
the/DT
corresponding/JJ
period/NN
of/IN
Operating/VBG
profit/NN
climbed/VBD
51/CD
%/NN
,/,
to/TO
572/CD
million/CD
francs/NNS
from/IN
378/CD
million/CD
in/IN
the/DT
first/JJ
half/DT
of/IN
1988/CD
./.
Matra/NNP
said/VBD
the/DT
sharp/JJ
improvement/NN
in/IN
net/JJ
profit/NN
partly/RB
reflected/VBD
a/DT
decline/NN
of/IN
59/CD
million/CD
francs/NNS
in/IN
the/DT
group/NN
's/POS
net/JJ
loss/NN
from/IN
nonrecurring/VBG
items/NNS
in/IN
the/DT
first/JJ
half/DT
of/IN
this/DT
year/NN
to/TO
104/CD
million/CD
francs/NNS
from/IN
163/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
There/EX
was/VBD
also/RB
a/DT
decline/NN
in/IN
the/DT
group/NN
's/POS
net/JJ
financial/JJ
costs/NNS
to/TO
25/CD
million/CD
francs/NNS
from/IN
50/CD
million/CD
a/DT
year/NN
before/IN
./.
These/DT
movements/NNS
were/VBD
offset/VBN
,/,
however/RB
,/,
by/IN
a/DT
steep/JJ
rise/NN
in/IN
corporate/JJ
income/NN
tax/NN
payments/NNS
to/TO
199/CD
million/CD
francs/NNS
from/IN
35/CD
million/CD
in/IN
the/DT
first/JJ
six/CD
months/NNS
of/IN
1988/CD
./.
Matra/NNP
said/VBD
the/DT
sharp/JJ
rise/NN
in/IN
its/PRP$
first-half/JJ
earnings/NNS
was/VBD
based/VBN
on/IN
a/DT
15/CD
%/NN
gain/NN
in/IN
consolidated/JJ
revenue/NN
to/TO
10.16/CD
billion/CD
francs/NNS
from/IN
8.85/CD
billion/CD
a/DT
year/NN
earlier/RBR
./.
Rep./NNP
Lee/NNP
Hamilton/NNP
D./NNP
,/,
Ind/NNP
./.
he/PRP
and/CC
Rep./NNP
Byron/NNP
Dorgan/NNP
D./NNP
,/,
N.D/NNP
./.
their/PRP$
proposal/NN
to/TO
make/VB
the/DT
Treasury/NNP
Secretary/NNP
a/DT
voting/VBG
member/NN
of/IN
the/DT
Federal/NNP
Reserve/NNP
panel/NN
that/WDT
sets/VBZ
monetary/JJ
policy/NN
./.
Rep./NNP
Hamilton/NNP
said/VBD
the/DT
bill/NN
will/MD
be/VB
modified/VBN
substantially/RB
to/TO
call/VB
for/IN
two/CD
meetings/NNS
each/DT
year/NN
between/IN
the/DT
Fed/NNP
's/POS
open/JJ
market/NN
committee/NN
and/CC
the/DT
Treasury/NNP
Secretary/NNP
,/,
the/DT
chairman/NN
of/IN
the/DT
Council/NNP
of/IN
Economic/NNP
Advisers/NNPS
and/CC
the/DT
director/NN
of/IN
the/DT
Office/NNP
of/IN
Management/NNP
and/CC
Budget/NNP
./.
The/DT
original/JJ
bill/NN
was/VBD
strongly/RB
opposed/VBN
by/IN
the/DT
Fed/NNP
and/CC
publicly/RB
criticized/VBN
by/IN
friends/NNS
of/IN
the/DT
Fed/NNP
as/IN
an/DT
attempt/NN
to/TO
undermine/VB
the/DT
central/JJ
bank/NN
's/POS
independence/NN
./.
Fed/NNP
critics/NNS
,/,
however/RB
,/,
hailed/VBD
it/PRP
as/IN
a/DT
long/JJ
overdue/JJ
attempt/NN
to/TO
bring/VB
a/DT
measure/NN
of/IN
openness/NN
and/CC
democracy/NN
to/TO
the/DT
setting/NN
of/IN
monetary/JJ
policy/NN
./.
Rep./NNP
Hamilton/NNP
said/VBD
the/DT
purpose/NN
of/IN
the/DT
meetings/NNS
would/MD
be/VB
to/TO
``/``
improve/VB
communications/NNS
and/CC
perhaps/RB
coordination/NN
between/IN
the/DT
executive/JJ
branch/NN
and/CC
the/DT
Fed/NNP
./.
''/''
Fed/NNP
Chairman/NNP
Alan/NNP
Greenspan/NNP
meets/VBZ
regularly/RB
for/IN
lunch/NN
with/IN
Treasury/NNP
Secretary/NNP
Nicholas/NNP
Brady/NNP
and/CC
talks/VBZ
frequently/RB
with/IN
Budget/NNP
Director/NNP
Richard/NNP
Darman/NNP
and/CC
Michael/NNP
Boskin/NNP
,/,
chairman/NN
of/IN
the/DT
Council/NNP
of/IN
Economic/NNP
Advisers/NNPS
./.
The/DT
administration/NN
officials/NNS
do/VBP
n't/RB
ordinarily/RB
meet/VB
with/IN
the/DT
entire/JJ
membership/NN
of/IN
the/DT
open/JJ
market/NN
committee/NN
./.
B.F./NNP
Goodrich/NNP
Co./NNP
said/VBD
third-quarter/JJ
profits/NNS
dropped/VBD
34/CD
%/NN
because/IN
of/IN
lower/JJR
prices/NNS
for/IN
polyvinyl/NN
chloride/NN
materials/NNS
,/,
the/DT
company/NN
's/POS
largest/JJS
product/NN
group/NN
./.
Net/NN
fell/VBD
to/TO
$/$
40.1/CD
million/CD
,/,
or/CC
$/$
1.50/CD
a/DT
share/NN
,/,
from/IN
$/$
60.7/CD
million/CD
,/,
or/CC
$/$
2.32/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
for/IN
the/DT
quarter/NN
slipped/VBD
2.7/CD
%/NN
to/TO
$/$
601.3/CD
million/CD
from/IN
$/$
618.1/CD
million/CD
./.
Polyvinyl/NN
chloride/NN
capacity/NN
``/``
has/VBZ
overtaken/VBN
demand/NN
and/CC
we/PRP
are/VBP
experiencing/VBG
reduced/VBN
profit/NN
margins/NNS
as/IN
a/DT
result/NN
,/,
''/''
said/VBD
John/NNP
D./NNP
Ong/NNP
,/,
chairman/NN
and/CC
chief/NN
executive/NN
./.
Prices/NNS
for/IN
general-purpose/JJ
PVC/NNP
resin/NN
have/VBP
dropped/VBN
more/RBR
than/IN
15/CD
%/NN
since/IN
last/JJ
December/NNP
,/,
he/PRP
said/VBD
./.
The/DT
plastic/JJ
resin/NN
is/VBZ
used/VBN
in/IN
a/DT
wide/JJ
range/NN
of/IN
products/NNS
,/,
including/VBG
siding/NN
,/,
pipe/NN
and/CC
electrical/JJ
wire/NN
insulation/NN
./.
Goodrich/NNP
's/POS
vinyl-products/NNS
segment/NN
reported/VBD
operating/VBG
profit/NN
for/IN
the/DT
quarter/NN
of/IN
$/$
30.1/CD
million/CD
,/,
less/JJR
than/IN
half/PDT
the/DT
$/$
64.1/CD
million/CD
of/IN
the/DT
year-earlier/JJ
quarter/NN
./.
Third-quarter/JJ
operating/VBG
profit/NN
of/IN
the/DT
specialty-chemicals/NNS
group/NN
declined/VBD
slightly/RB
to/TO
$/$
24.3/CD
million/CD
from/IN
$/$
24.9/CD
million/CD
./.
But/CC
operating/VBG
profit/NN
from/IN
aerospace/NN
products/NNS
rose/VBD
nearly/RB
50/CD
%/NN
to/TO
$/$
15/CD
million/CD
from/IN
$/$
10.1/CD
million/CD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
shares/NNS
of/IN
the/DT
Akron/NNP
,/,
Ohio-based/JJ
company/NN
fell/VBD
$/$
1.375/CD
to/TO
$/$
49.125/CD
./.
Fiat/NNP
S.p/NNP
./.
A./NNP
,/,
Italy/NNP
's/POS
leading/VBG
industrial/JJ
group/NN
,/,
is/VBZ
conducting/VBG
``/``
concrete/JJ
''/''
talks/NNS
with/IN
West/NNP
Germany/NNP
's/POS
Daimler-Benz/NNP
AG/NNP
on/IN
a/DT
series/NN
of/IN
projects/NNS
in/IN
the/DT
aerospace/NN
sector/NN
,/,
Fiat/NNP
officials/NNS
said/VBD
./.
However/RB
,/,
the/DT
officials/NNS
said/VBD
it/PRP
was/VBD
too/RB
early/JJ
to/TO
disclose/VB
the/DT
nature/NN
of/IN
the/DT
proposed/VBN
projects/NNS
or/CC
indicate/VB
when/WRB
the/DT
talks/NNS
might/MD
be/VB
concluded/VBN
./.
Daimler-Benz/NNP
Chairman/NNP
Edzard/NNP
Reuter/NNP
told/VBD
Milan/NNP
's/POS
financial/JJ
daily/JJ
Il/NNP
Sole/NNP
24/CD
Ore/NNP
that/IN
talks/NNS
are/VBP
taking/VBG
place/NN
between/IN
both/DT
companies/NNS
'/POS
aerospace/NN
units/NNS
./.
``/``
While/IN
Mr./NNP
Reuter/NNP
's/POS
comments/NNS
please/VBP
us/PRP
very/RB
much/RB
,/,
there/EX
currently/RB
are/VBP
no/DT
talks/NNS
in/IN
progress/NN
regarding/VBG
the/DT
automotive/JJ
industry/NN
,/,
''/''
a/DT
Fiat/NNP
spokeswoman/NN
said/VBD
./.
In/IN
the/DT
interview/NN
,/,
Mr./NNP
Reuter/NNP
said/VBD
he/PRP
is/VBZ
thinking/VBG
foremost/RB
of/IN
cooperation/NN
in/IN
the/DT
truck/NN
sector/NN
,/,
but/CC
``/``
in/IN
the/DT
long/JJ
run/NN
,/,
I/PRP
do/VBP
n't/RB
want/VB
to/TO
rule/VB
out/IN
that/IN
we/PRP
can/MD
also/RB
come/VB
a/DT
bit/NN
closer/RBR
in/IN
personal/JJ
cars/NNS
./.
''/''
Roberto/NNP
Morelli/NNP
,/,
Italy/NNP
analyst/NN
for/IN
County/NNP
Natwest/NNP
Securities/NNPS
in/IN
London/NNP
,/,
said/VBD
that/IN
right/RB
now/RB
``/``
the/DT
market/NN
is/VBZ
n't/RB
being/VBG
influenced/VBN
by/IN
that/DT
kind/NN
of/IN
news/NN
,/,
''/''
referring/VBG
to/TO
the/DT
conditional/JJ
nature/NN
of/IN
the/DT
talks/NNS
mentioned/VBN
by/IN
Mr./NNP
Reuter/NNP
and/CC
by/IN
the/DT
uncertainty/NN
surrounding/VBG
world/NN
stock/NN
exchanges/NNS
this/DT
week/NN
./.
Paul/NNP
Tanner/NNP
was/VBD
named/VBN
president/NN
,/,
chief/NN
executive/NN
officer/NN
and/CC
chairman/NN
of/IN
this/DT
oil/NN
and/CC
natural/JJ
gas/NN
company/NN
./.
He/PRP
succeeds/VBZ
John/NNP
A./NNP
Boudreau/NNP
,/,
who/WP
resigned/VBD
for/IN
personal/JJ
reasons/NNS
./.
Mr./NNP
Tanner/NNP
had/VBD
been/VBN
president/NN
of/IN
Penn/NNP
Pacific/NNP
's/POS
National/NNP
Southwest/NNP
Capital/NNP
Group/NNP
subsidiary/NN
./.
Mr./NNP
Boudreau/NNP
will/MD
remain/VB
with/IN
Penn/NNP
Pacific/NNP
as/IN
a/DT
director/NN
and/CC
a/DT
member/NN
of/IN
the/DT
executive/JJ
committee/NN
./.
He/PRP
has/VBZ
also/RB
agreed/VBN
to/TO
become/VB
president/NN
of/IN
a/DT
new/JJ
subsidiary/NN
to/TO
be/VB
formed/VBN
to/TO
make/VB
future/JJ
acquisitions/NNS
,/,
the/DT
company/NN
said/VBD
./.
Spooked/VBN
investors/NNS
,/,
despite/IN
their/PRP$
stampede/NN
to/TO
dump/VB
takeover/NN
stocks/NNS
,/,
should/MD
hold/VB
on/IN
tight/RB
to/TO
their/PRP$
Jaguar/NNP
shares/NNS
./.
That/DT
's/VBZ
the/DT
view/NN
of/IN
some/DT
analysts/NNS
here/RB
who/WP
argue/VBP
that/IN
Britain/NNP
's/POS
leading/VBG
maker/NN
of/IN
luxury/NN
cars/NNS
still/RB
may/MD
have/VB
two/CD
U.S./NNP
auto/NN
giants/NNS
battling/VBG
for/IN
it/PRP
./.
Yesterday/NN
,/,
Ford/NNP
Motor/NNP
disclosed/VBD
that/IN
it/PRP
has/VBZ
raised/VBN
its/PRP$
holding/NN
in/IN
Jaguar/NNP
to/TO
10.4/CD
%/NN
from/IN
5/CD
%/NN
./.
Both/DT
Ford/NNP
and/CC
its/PRP$
rival/NN
General/NNP
Motors/NNPS
recently/RB
set/VBD
their/PRP$
sights/NNS
on/IN
grabbing/VBG
significant/JJ
minority/NN
stakes/NNS
in/IN
the/DT
British/JJ
company/NN
./.
Ford/NNP
's/POS
latest/JJS
move/NN
increases/VBZ
the/DT
pressure/NN
on/IN
GM/NNP
to/TO
complete/VB
its/PRP$
current/JJ
talks/NNS
with/IN
Jaguar/NNP
quickly/RB
./.
GM/NNP
is/VBZ
likely/JJ
to/TO
reach/VB
the/DT
cooperative/JJ
operating/VBG
pact/NN
it/PRP
has/VBZ
been/VBN
seeking/VBG
in/IN
about/IN
two/CD
weeks/NNS
,/,
knowledgeable/JJ
individuals/NNS
say/VBP
./.
At/IN
that/DT
point/NN
investors/NNS
may/MD
face/VB
a/DT
long/JJ
,/,
bumpy/JJ
ride/NN
./.
A/DT
victor/NN
in/IN
the/DT
fight/NN
for/IN
Jaguar/NNP
may/MD
not/RB
emerge/VB
until/IN
after/IN
the/DT
expiration/NN
late/JJ
next/JJ
year/NN
of/IN
British/JJ
government/NN
takeover/NN
restrictions/NNS
./.
The/DT
curbs/NNS
prevent/VBP
a/DT
buyer/NN
from/IN
purchasing/VBG
more/RBR
than/IN
15/CD
%/NN
of/IN
Jaguar/NNP
shares/NNS
without/IN
permission/NN
./.
``/``
This/DT
is/VBZ
an/DT
exceptionally/RB
odd/JJ
takeover/NN
battle/NN
,/,
''/''
says/VBZ
London/NNP
analyst/NN
Christopher/NNP
Will/NNP
of/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
./.
Jaguar/NNP
's/POS
American/JJ
depositary/NN
receipts/NNS
were/VBD
up/IN
3\/8/CD
yesterday/NN
in/IN
a/DT
down/NN
market/NN
,/,
closing/VBG
at/IN
10/CD
3\/8/CD
./.
Jaguar/NNP
's/POS
ADRs/NNS
make/VBP
the/DT
company/NN
one/CD
of/IN
the/DT
most/RBS
widely/RB
held/VBN
United/NNP
Kingdom/NNP
stocks/NNS
in/IN
the/DT
U.S./NNP
,/,
with/IN
more/RBR
than/IN
one-fourth/NN
of/IN
its/PRP$
shares/NNS
owned/VBN
there/RB
./.
Jaguar/NNP
topped/VBD
the/DT
most-active/JJ
list/NN
for/IN
the/DT
U.S./NNP
over-the-counter/JJ
market/NN
Monday/NNP
./.
And/CC
on/IN
London/NNP
's/POS
Stock/NNP
Exchange/NNP
Monday/NNP
,/,
18.5/CD
million/CD
shares/NNS
were/VBD
traded/VBN
,/,
far/RB
above/IN
the/DT
usual/JJ
volume/NN
./.
Ford/NNP
's/POS
share/NN
purchases/NNS
undoubtedly/RB
accounted/VBD
for/IN
much/RB
of/IN
Monday/NNP
's/POS
heavy/JJ
trading/NN
./.
Last/JJ
week/NN
,/,
many/JJ
Jaguar/NNP
shareholders/NNS
took/VBD
their/PRP$
money/NN
and/CC
ran/VBD
./.
Fears/NNS
that/IN
Ford/NNP
's/POS
ardor/NN
might/MD
be/VB
cooling/VBG
put/VBP
Jaguar/NNP
shares/NNS
into/IN
reverse/NN
after/IN
GM/NNP
confirmed/VBD
its/PRP$
friendly/JJ
negotiations/NNS
with/IN
Jaguar/NNP
./.
But/CC
yesterday/NN
's/POS
announcement/NN
indicates/VBZ
that/IN
Ford/NNP
has/VBZ
n't/RB
lost/VBN
interest/NN
./.
Both/DT
Shearson/NNP
's/POS
Mr/NNP
./.
Will/NNP
and/CC
Stephen/NNP
Reitman/NNP
,/,
European/JJ
auto/NN
analyst/NN
at/IN
the/DT
London/NNP
brokerage/NN
firm/NN
UBS-Phillips/NNP
&/CC
Drew/NNP
,/,
recently/RB
switched/VBD
their/PRP$
Jaguar/NNP
recommendations/NNS
to/TO
hold/VB
from/IN
buy/NN
./.
``/``
Sit/VB
tight/RB
''/''
through/IN
the/DT
coming/VBG
volatility/NN
,/,
Mr./NNP
Reitman/NNP
suggests/VBZ
,/,
though/IN
he/PRP
concedes/VBZ
that/IN
many/JJ
small/JJ
investors/NNS
will/MD
find/VB
Jaguar/NNP
's/POS
zigzags/NNS
``/``
too/RB
hard/JJ
to/TO
swallow/VB
./.
''/''
But/CC
a/DT
crucial/JJ
point/NN
is/VBZ
how/WRB
Ford/NNP
reacts/VBZ
when/WRB
GM/NNP
,/,
the/DT
world/NN
's/POS
largest/JJS
auto/NN
maker/NN
,/,
firms/NNS
up/IN
its/PRP$
proposed/VBN
deal/NN
with/IN
Jaguar/NNP
./.
At/IN
the/DT
moment/NN
,/,
Ford/NNP
executives/NNS
will/MD
say/VB
little/JJ
beyond/IN
reiterating/VBG
their/PRP$
desire/NN
to/TO
raise/VB
Ford/NNP
's/POS
Jaguar/NNP
stake/NN
to/TO
about/IN
15/CD
%/NN
./.
GM/NNP
is/VBZ
expected/VBN
to/TO
inject/VB
roughly/RB
#/#
200/CD
million/CD
$/$
316/CD
million/CD
some/DT
Jaguar/NNP
shares/NNS
,/,
and/CC
then/RB
win/VB
Jaguar/NNP
management/NN
's/POS
promise/NN
of/IN
an/DT
eventual/JJ
30/CD
%/NN
stake/NN
./.
Analysts/NNS
believe/VBP
the/DT
car/NN
makers/NNS
also/RB
will/MD
create/VB
joint/JJ
ventures/NNS
to/TO
develop/VB
new/JJ
executive/NN
models/NNS
,/,
doubling/VBG
Jaguar/NNP
's/POS
yearly/JJ
output/NN
of/IN
50,000/CD
cars/NNS
./.
Jaguar/NNP
shareholders/NNS
would/MD
have/VB
to/TO
bless/VB
such/PDT
a/DT
far-reaching/JJ
accord/NN
./.
Ford/NNP
might/MD
challenge/VB
the/DT
proposal/NN
by/IN
offering/VBG
a/DT
full/JJ
bid/NN
if/IN
holders/NNS
and/CC
the/DT
U.K./NNP
government/NN
agreed/VBD
to/TO
drop/VB
the/DT
anti-takeover/NN
barrier/NN
early/RB
./.
``/``
I/PRP
think/VBP
Ford/NNP
is/VBZ
going/VBG
to/TO
come/VB
out/IN
with/IN
full/JJ
guns/NNS
blazing/VBG
,/,
''/''
Mr./NNP
Reitman/NNP
says/VBZ
./.
``/``
Ford/NNP
wants/VBZ
{/(
Jaguar/NNP
''/''
U.S./NNP
takeover-stock/JJ
speculators/NNS
,/,
who/WP
may/MD
own/VB
between/IN
20/CD
%/NN
and/CC
30/CD
%/NN
of/IN
Jaguar/NNP
,/,
could/MD
give/VB
Ford/NNP
enough/RB
votes/NNS
to/TO
block/VB
the/DT
GM/NNP
deal/NN
./.
GM/NNP
might/NN
counterbid/NN
./.
Then/RB
,/,
Mr/NNP
./.
Will/NNP
says/VBZ
,/,
``/``
you/PRP
get/VBP
a/DT
bidding/NN
war/NN
between/IN
two/CD
very/RB
rich/JJ
,/,
very/RB
determined/VBN
international/JJ
companies/NNS
./.
''/''
He/PRP
believes/VBZ
Jaguar/NNP
's/POS
share/NN
price/NN
could/MD
zoom/VB
to/TO
between/IN
#/#
8/CD
and/CC
#/#
10/CD
$/$
12.60/CD
to/TO
$/$
15.80/CD
``/``
There/EX
's/VBZ
quite/RB
a/DT
bit/NN
of/IN
value/NN
left/VBN
in/IN
the/DT
Jaguar/NNP
shares/NNS
here/RB
even/RB
though/IN
they/PRP
have/VBP
run/VBN
up/IN
''/''
lately/RB
,/,
says/VBZ
Doug/NNP
Johnson/NNP
,/,
a/DT
fund/NN
manager/NN
for/IN
Seattle-based/JJ
Safeco/NNP
Asset/NNP
Management/NNP
./.
At/IN
the/DT
moment/NN
,/,
he/PRP
intends/VBZ
to/TO
keep/VB
the/DT
firm/NN
's/POS
180,000/CD
Jaguar/NNP
shares/NNS
./.
The/DT
risk/NN
is/VBZ
that/IN
Jaguar/NNP
's/POS
share/NN
price/NN
could/MD
slump/VB
if/IN
GM/NNP
's/POS
agreement/NN
with/IN
Jaguar/NNP
effectively/RB
locks/VBZ
out/IN
its/PRP$
U.S./NNP
rival/NN
./.
``/``
Ford/NNP
's/POS
appetite/NN
to/TO
attack/VB
{/(
Jaguar/NNP
time/NN
,/,
particularly/RB
if/IN
Saab/NNP
is/VBZ
a/DT
reasonably/RB
attractive/JJ
proposition/NN
,/,
''/''
says/VBZ
John/NNP
Lawson/NNP
,/,
an/DT
auto/NN
analyst/NN
at/IN
London/NNP
's/POS
Nomura/NNP
Research/NNP
Institute/NNP
./.
He/PRP
thinks/VBZ
Saab-Scania/NNP
AB/NNP
on/IN
Friday/NNP
will/MD
announce/VB
the/DT
sale/NN
of/IN
50/CD
%/NN
of/IN
its/PRP$
car/NN
division/NN
to/TO
Ford/NNP
;/:
the/DT
companies/NNS
have/VBP
been/VBN
discussing/VBG
closer/JJR
cooperation/NN
for/IN
months/NNS
./.
Clifford/NNP
Stahl/NNP
,/,
president/NN
and/CC
chief/NN
investment/NN
officer/NN
of/IN
C-S/NNP
Capital/NNP
Advisors/NNPS
Inc./NNP
,/,
two/CD
weeks/NNS
ago/IN
sold/VBD
his/PRP$
Cincinnati/NNP
firm/NN
's/POS
107,100/CD
Jaguar/NNP
ADRs/NNPS
at/IN
about/IN
10/CD
each/DT
,/,
making/VBG
a/DT
tidy/JJ
profit/NN
on/IN
a/DT
holding/NN
purchased/VBN
at/IN
4/CD
7\/8/CD
in/IN
early/JJ
May/NNP
./.
``/``
I/PRP
thought/VBD
the/DT
probabilities/NNS
of/IN
{/(
a/DT
bidding/NN
war/NN
he/PRP
says/VBZ
./.
Of/IN
course/NN
,/,
that/WDT
was/VBD
before/IN
Ford/NNP
's/POS
latest/JJS
move/NN
./.
Jaguar/NNP
OTC/NNP
;/:
Symbol/NN
:/:
JAGRY/NNP
Business/NN
:/:
Luxury/NN
cars/NNS
Year/NN
ended/VBD
Dec./NNP
31/CD
,/,
1988/CD
:/:
Revenue/NN
:/:
$/$
1.71/CD
billion/CD
Net/JJ
income/NN
:/:
$/$
44.9/CD
million/CD
;/:
or/CC
25/CD
cents/NNS
a/DT
share/NN
First/JJ
half/DT
ended/VBD
,/,
June/NNP
30/CD
,/,
1989/CD
:/:
Net/JJ
loss/NN
:/:
$/$
1.7/CD
million/CD
vs./CC
net/JJ
income/NN
:/:
$/$
21.2/CD
million/CD
;/:
or/CC
12/CD
cents/NNS
a/DT
share/NN
Averae/NNP
daily/RB
trading/NN
volume/NN
:/:
Ordinary/JJ
shares/NNS
outstanding/JJ
:/:
182.9/CD
million/CD
NOTE/NN
:/:
All/DT
figures/NNS
are/VBP
translated/VBN
into/IN
U.S./NNP
dollars/NNS
based/VBN
on/IN
current/JJ
exchange/NN
rates/NNS
./.
A.F./NNP
Sloan/NNP
,/,
60/CD
years/NNS
old/JJ
,/,
announced/VBD
that/IN
he/PRP
will/MD
retire/VB
next/JJ
April/NNP
as/IN
chairman/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
this/DT
snack/NN
food/NN
and/CC
bakery/NN
products/NNS
maker/NN
./.
No/DT
replacement/NN
was/VBD
immediately/RB
named/VBN
./.
Mr./NNP
Sloan/NNP
plans/VBZ
to/TO
remain/VB
on/IN
the/DT
board/NN
until/IN
his/PRP$
current/JJ
term/NN
expires/VBZ
in/IN
April/NNP
1991/CD
,/,
a/DT
Lance/NNP
spokesman/NN
said/VBD
./.
Newport/NNP
Electronics/NNP
Inc./NNP
of/IN
Santa/NNP
Ana/NNP
,/,
Calif./NNP
,/,
said/VBD
Milton/NNP
B./NNP
Hollander/NNP
,/,
who/WP
holds/VBZ
a/DT
49.4/CD
%/NN
stake/NN
,/,
requested/VBD
a/DT
special/JJ
shareholders/NNS
'/POS
meeting/NN
next/IN
Wednesday/NNP
to/TO
remove/VB
four/CD
current/JJ
directors/NNS
and/CC
elect/VB
an/DT
alternative/JJ
slate/NN
./.
Mr./NNP
Hollander/NNP
's/POS
High/NNP
Technology/NNP
Holding/NNP
Co./NNP
of/IN
Stamford/NNP
,/,
Conn./NNP
,/,
acquired/VBD
most/JJS
of/IN
its/PRP$
stake/NN
last/JJ
August/NNP
in/IN
an/DT
$/$
11-a-share/JJ
tender/NN
offer/NN
for/IN
Newport/NNP
,/,
a/DT
maker/NN
of/IN
electronic-measuring/JJ
devices/NNS
./.
Newport/NNP
said/VBD
Mr./NNP
Hollander/NNP
is/VBZ
asking/VBG
shareholders/NNS
to/TO
retain/VB
only/RB
one/CD
director/NN
,/,
James/NNP
R./NNP
Lees/NNP
,/,
a/DT
Newport/NNP
vice/NN
president/NN
./.
The/DT
board/NN
is/VBZ
n't/RB
proposing/VBG
a/DT
slate/NN
of/IN
its/PRP$
own/JJ
and/CC
the/DT
other/JJ
four/CD
current/JJ
directors/NNS
do/VBP
n't/RB
want/VB
to/TO
serve/VB
beyond/IN
the/DT
special/JJ
meeting/NN
date/NN
,/,
Newport/NNP
said/VBD
./.
Mr./NNP
Hollander/NNP
``/``
is/VBZ
the/DT
new/JJ
owner/NN
and/CC
wants/VBZ
to/TO
exercise/VB
control/NN
,/,
''/''
said/VBD
Barret/NNP
B./NNP
Weekes/NNP
,/,
Newport/NNP
's/POS
chairman/NN
./.
Sandoz/NNP
AG/NNP
,/,
a/DT
major/JJ
Swiss/NNP
chemical/NN
and/CC
pharmaceutical/JJ
group/NN
,/,
said/VBD
that/DT
its/PRP$
group/NN
sales/NNS
rose/VBD
25/CD
%/NN
to/TO
9.482/CD
billion/CD
francs/NNS
$/$
5.80/CD
billion/CD
the/DT
first/JJ
nine/CD
months/NNS
of/IN
this/DT
year/NN
,/,
with/IN
strong/JJ
gains/NNS
in/IN
all/DT
divisions/NNS
./.
A/DT
year/NN
earlier/JJR
sales/NNS
totaled/VBD
7.567/CD
billion/CD
francs/NNS
./.
Positive/JJ
currency/NN
rates/NNS
and/CC
strong/JJ
sales/NNS
growth/NN
led/VBD
to/TO
a/DT
substantial/JJ
rise/NN
in/IN
consolidated/JJ
profit/NN
in/IN
the/DT
period/NN
,/,
although/IN
the/DT
company/NN
did/VBD
n't/RB
provide/VB
figures/NNS
,/,
as/IN
is/VBZ
customary/JJ
with/IN
Swiss/NNP
companies/NNS
./.
Sandoz/NNP
said/VBD
it/PRP
expects/VBZ
a/DT
``/``
substantial/JJ
increase/NN
''/''
in/IN
consolidated/JJ
profit/NN
for/IN
the/DT
full/JJ
year/NN
,/,
barring/VBG
major/JJ
currency/NN
rate/NN
changes/NNS
./.
Amstrad/NNP
PLC/NNP
,/,
a/DT
British/JJ
maker/NN
of/IN
computer/NN
hardware/NN
and/CC
communications/NNS
equipment/NN
,/,
posted/VBD
a/DT
52/CD
%/NN
plunge/NN
in/IN
pretax/NN
profit/NN
for/IN
the/DT
latest/JJS
year/NN
./.
The/DT
#/#
76.6/CD
million/CD
$/$
120.6/CD
million/CD
pretax/NN
profit/NN
for/IN
the/DT
12/CD
months/NNS
to/TO
June/NNP
30/CD
was/VBD
down/IN
from/IN
#/#
160/CD
million/CD
$/$
252/CD
million/CD
a/DT
year/NN
earlier/RBR
and/CC
below/IN
market/NN
expectations/NNS
of/IN
#/#
80/CD
million/CD
and/CC
#/#
90/CD
million/CD
./.
The/DT
slump/NN
in/IN
profit/NN
,/,
which/WDT
came/VBD
despite/IN
steady/JJ
sales/NNS
,/,
was/VBD
attributed/VBN
to/TO
increased/VBN
costs/NNS
for/IN
parts/NNS
and/CC
problems/NNS
with/IN
model/NN
introductions/NNS
./.
Amstrad/NNP
's/POS
profit/NN
after/IN
taxes/NNS
fell/VBD
a/DT
similarly/RB
steep/JJ
51/CD
%/NN
,/,
to/TO
#/#
51.1/CD
million/CD
from/IN
#/#
105/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
Sales/NNS
edged/VBD
up/IN
fractionally/RB
to/TO
#/#
626.3/CD
million/CD
from/IN
#/#
625.4/CD

million/CD
a/DT
year/NN
earlier/RBR
./.
Microsoft/NNP
Corp./NNP
's/POS
earnings/NNS
growth/NN
continued/VBD
to/TO
outstrip/VB
that/IN
of/IN
most/JJS
of/IN
its/PRP$
competitors/NNS
and/CC
customers/NNS
in/IN
the/DT
personal-computer/NN
industry/NN
,/,
as/IN
it/PRP
reported/VBD
a/DT
36/CD
%/NN
jump/NN
in/IN
fiscal/JJ
first-quarter/NN
earnings/NNS
on/IN
a/DT
33/CD
%/NN
revenue/NN
gain/NN
./.
The/DT
Redmond/NNP
,/,
Wash./NNP
company/NN
,/,
a/DT
bellwether/NN
provider/NN
of/IN
operating/VBG
systems/NNS
and/CC
software/NN
for/IN
personal-computer/NN
makers/NNS
and/CC
users/NNS
,/,
reported/VBD
net/JJ
income/NN
for/IN
the/DT
quarter/NN
ended/VBD
Sept./NNP
30/CD
of/IN
$/$
49.6/CD
million/CD
,/,
or/CC
87/CD
cents/NNS
a/DT
share/NN
,/,
up/IN
from/IN
$/$
36.6/CD
million/CD
,/,
or/CC
65/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
year-ago/JJ
period/NN
./.
Revenue/NN
rose/VBD
to/TO
$/$
235.2/CD
million/CD
,/,
from/IN
$/$
176.4/CD
million/CD
./.
Microsoft/NNP
previously/RB
indicated/VBD
it/PRP
would/MD
have/VB
a/DT
strong/JJ
quarter/NN
by/IN
forecasting/VBG
its/PRP$
revenue/NN
gain/NN
on/IN
Oct./NNP
4/CD
,/,
causing/VBG
a/DT
$/$
6.50/CD
a/DT
share/NN
jump/NN
in/IN
its/PRP$
stock/NN
./.
But/CC
its/PRP$
stock/NN
jumped/VBD
again/RB
yesterday/NN
as/IN
it/PRP
disclosed/VBD
surprisingly/RB
strong/JJ
margins/NNS
on/IN
those/DT
sales/NNS
./.
Microsoft/NNP
's/POS
stock/NN
rose/VBD
$/$
2.875/CD
a/DT
share/NN
in/IN
national/JJ
over-the-counter/JJ
trading/NN
to/TO
$/$
78.625/CD
./.
The/DT
stock/NN
had/VBD
hit/VBN
a/DT
high/JJ
of/IN
$/$
81/CD
a/DT
share/NN
early/JJ
last/JJ
week/NN
but/CC
collapsed/VBD
to/TO
$/$
73.50/CD
in/IN
the/DT
Friday/NNP
stock/NN
plunge/NN
./.
The/DT
company/NN
had/VBD
been/VBN
experiencing/VBG
softening/VBG
margins/NNS
because/IN
of/IN
increased/VBN
sales/NNS
of/IN
software/NN
applications/NNS
,/,
which/WDT
have/VBP
lower/JJR
margins/NNS
than/IN
do/VBP
operating/VBG
systems/NNS
./.
But/CC
the/DT
company/NN
said/VBD
that/DT
trend/NN
was/VBD
offset/VBN
in/IN
the/DT
first/JJ
quarter/NN
by/IN
better/JJR
economies/NNS
of/IN
scale/NN
and/CC
efficiencies/NNS
in/IN
manufacturing/NN
./.
As/IN
a/DT
result/NN
,/,
Microsoft/NNP
's/POS
cost/NN
of/IN
goods/NNS
,/,
as/IN
a/DT
percentage/NN
of/IN
sales/NNS
,/,
fell/VBD
17/CD
%/NN
from/IN
the/DT
year-ago/JJ
quarter/NN
and/CC
13/CD
%/NN
from/IN
the/DT
previous/JJ
period/NN
./.
The/DT
trend/NN
drove/VBD
up/IN
the/DT
aftertax/NN
margin/NN
--/:
net/JJ
income/NN
as/IN
a/DT
percentage/NN
of/IN
revenues/NNS
--/:
to/TO
21.1/CD
%/NN
in/IN
the/DT
quarter/NN
,/,
compared/VBN
with/IN
20.7/CD
%/NN
a/DT
year/NN
earlier/RBR
./.
Microsoft/NNP
officials/NNS
said/VBD
the/DT
strong/JJ
results/NNS
also/RB
reflected/VBD
continuing/VBG
high/JJ
demand/NN
for/IN
its/PRP$
software/NN
applications/NNS
and/CC
operating/VBG
systems/NNS
./.
While/IN
it/PRP
has/VBZ
predicted/VBN
that/IN
overall/JJ
growth/NN
in/IN
unit/NN
sales/NNS
of/IN
personal/JJ
computers/NNS
is/VBZ
slowing/VBG
to/TO
about/IN
a/DT
10/CD
%/NN
yearly/JJ
rate/NN
,/,
its/PRP$
own/JJ
products/NNS
are/VBP
selling/VBG
at/IN
a/DT
much/JJ
faster/JJR
rate/NN
because/IN
many/JJ
are/VBP
geared/VBN
to/TO
the/DT
high-performance/NN
end/NN
of/IN
the/DT
market/NN
./.
That/DT
segment/NN
continues/VBZ
to/TO
post/VB
strong/JJ
quarter-to-quarter/JJ
gains/NNS
,/,
while/IN
the/DT
low-end/NN
,/,
or/CC
commodity/NN
segment/NN
,/,
of/IN
the/DT
industry/NN
is/VBZ
experiencing/VBG
sluggish/JJ
growth/NN
or/CC
even/JJ
sales/NNS
declines/NNS
./.
Compared/VBN
with/IN
its/PRP$
previous/JJ
quarter/NN
,/,
the/DT
final/JJ
period/NN
of/IN
its/PRP$
1989/CD
fiscal/JJ
year/NN
,/,
net/NN
rose/VBD
9/CD
%/NN
,/,
and/CC
sales/NNS
rose/VBD
7/CD
%/NN
./.
Control/NNP
Data/NNP
Corp./NNP
,/,
Minneapolis/NNP
,/,
signed/VBD
a/DT
joint/JJ
development/NN
agreement/NN
with/IN
MIPS/NNP
Computer/NNP
Systems/NNPS
Inc./NNP
to/TO
incorporate/VB
an/DT
emerging/VBG
computing/VBG
architecture/NN
in/IN
future/JJ
machines/NNS
./.
MIPS/NNP
is/VBZ
a/DT
leader/NN
in/IN
what/WP
is/VBZ
known/VBN
as/IN
reduced-instruction/NN
set/NN
computing/NN
,/,
or/CC
RISC/NNP
,/,
a/DT
technology/NN
combining/VBG
microprocessors/NNS
and/CC
sophisticated/JJ
software/NN
./.
In/IN
joining/VBG
MIPS/NNP
,/,
Control/NNP
Data/NNP
follows/VBZ
several/JJ
competitors/NNS
in/IN
embracing/VBG
RISC/NNP
as/IN
a/DT
new/JJ
design/NN
approach/NN
./.
Digital/NNP
Equipment/NNP
Corp./NNP
,/,
Tandem/NNP
Computers/NNPS
Inc./NNP
,/,
NEC/NNP
Corp./NNP
and/CC
Group/NNP
Bull/NNP
,/,
among/IN
others/NNS
,/,
have/VBP
similar/JJ
arrangements/NNS
with/IN
MIPs/NNP
,/,
based/VBN
in/IN
Sunnyvale/NNP
,/,
Calif/NNP
./.
Control/NNP
Data/NNP
said/VBD
it/PRP
expects/VBZ
its/PRP$
first/JJ
RISC-based/JJ
mainframe/JJ
machine/NN
to/TO
be/VB
introduced/VBN
next/JJ
year/NN
./.
The/DT
accord/NN
with/IN
MIPS/NNP
calls/VBZ
for/IN
Control/NNP
Data/NNP
to/TO
share/VB
its/PRP$
expertise/NN
in/IN
data/NNS
storage/NN
,/,
the/DT
companies/NNS
said/VBD
./.
Control/NNP
Data/NNP
also/RB
said/VBD
it/PRP
is/VBZ
developing/VBG
what/WP
it/PRP
called/VBD
a/DT
``/``
supermainframe/NN
''/''
computer/NN
,/,
the/DT
Cyber/NNP
2000/CD
,/,
intended/VBN
for/IN
scientists/NNS
,/,
engineers/NNS
and/CC
other/JJ
users/NNS
of/IN
generalpurpose/JJ
high-performance/JJ
computers/NNS
./.
UAL'S/NNP
STOCK/NN
SKIDDED/VBD
an/DT
additional/JJ
$/$
24.875/CD
,/,
to/TO
$/$
198/CD
,/,
as/IN
British/NNP
Airways/NNPS
indicated/VBD
it/PRP
may/MD
balk/VB
at/IN
any/DT
hastily/RB
revised/VBN
version/NN
of/IN
the/DT
aborted/VBN
$/$
6.79/CD
billion/CD
buy-out/NN
of/IN
United/NNP
Air/NNP
's/POS
parent/NN
./.
UAL/NNP
has/VBZ
fallen/VBN
$/$
87.25/CD
,/,
or/CC
31/CD
%/NN
,/,
in/IN
the/DT
three/CD
trading/NN
days/NNS
since/IN
disclosure/NN
of/IN
the/DT
buy-out/NN
's/POS
collapse/NN
jolted/VBD
the/DT
stock/NN
market/NN
./.
Meanwhile/RB
,/,
investor/NN
Marvin/NNP
Davis/NNP
said/VBD
he/PRP
remains/VBZ
interested/VBN
in/IN
UAL/NNP
,/,
but/CC
he/PRP
dropped/VBD
his/PRP$
earlier/JJR
$/$
300-a-share/JJ
back-up/NN
bid/NN
./.
Stock/NN
prices/NNS
fell/VBD
broadly/RB
in/IN
heavy/JJ
trading/NN
,/,
dominated/VBN
by/IN
futures-related/JJ
program/NN
selling/NN
and/CC
further/JJ
declines/NNS
by/IN
UAL/NNP
and/CC
other/JJ
airline/NN
stocks/NNS
./.
The/DT
Dow/NNP
Jones/NNP
industrials/NNS
closed/VBD
off/IN
18.65/CD
points/NNS
,/,
at/IN
2638.73/CD
,/,
after/IN
plunging/VBG
over/IN
60.25/CD
points/NNS
in/IN
the/DT
morning/NN
./.
Bond/NN
prices/NNS
ended/VBD
lower/JJR
after/IN
an/DT
early/JJ
rally/NN
,/,
while/IN
the/DT
dollar/NN
was/VBD
mixed/VBN
./.
The/DT
U.S./NNP
trade/NN
deficit/NN
swelled/VBD
to/TO
$/$
10.77/CD
billion/CD
in/IN
August/NNP
,/,
prompting/VBG
worries/NNS
that/IN
the/DT
nation/NN
's/POS
export/NN
drive/NN
had/VBD
stalled/VBN
./.
Exports/NNS
declined/VBD
for/IN
the/DT
second/JJ
month/NN
in/IN
a/DT
row/NN
,/,
while/IN
imports/NNS
rose/VBD
to/TO
a/DT
record/NN
./.
An/DT
analyst/NN
called/VBD
it/PRP
one/CD
of/IN
the/DT
worst/JJS
trade/NN
reports/NNS
since/IN
the/DT
dollar/NN
bottomed/VBD
out/IN
in/IN
Industrial/JJ
output/NN
fell/VBD
0.1/CD
%/NN
in/IN
September/NNP
,/,
the/DT
latest/JJS
sign/NN
manufacturing/NN
is/VBZ
slowing/VBG
./.
An/DT
analyst/NN
cited/VBD
weaker/JJR
capital/NN
spending/NN
and/CC
exports/NNS
./.
Bankers/NNPS
Trust/NNP
added/VBD
$/$
1.6/CD
billion/CD
to/TO
reserves/NNS
for/IN
Third/NNP
World/NNP
loans/NNS
,/,
the/DT
latest/JJS
big/JJ
bank/NN
to/TO
take/VB
such/PDT
a/DT
step/NN
./.
It/PRP
expects/VBZ
a/DT
$/$
1.42/CD
billion/CD
quarterly/JJ
loss/NN
./.
Citicorp/NNP
posted/VBD
a/DT
9/CD
%/NN
drop/NN
in/IN
quarterly/JJ
profit/NN
./.
Manufacturers/NNPS
Hanover/NNP
had/VBD
a/DT
loss/NN
due/JJ
to/TO
a/DT
big/JJ
reserve/NN
addition/NN
./.
Bank/NNP
of/IN
New/NNP
England/NNP
plans/VBZ
to/TO
sell/VB
some/DT
operations/NNS
and/CC
lay/VB
off/IN
4/CD
%/NN
of/IN
its/PRP$
work/NN
force/NN
after/IN
a/DT
year/NN
of/IN
weak/JJ
earnings/NNS
and/CC
mounting/VBG
loan/NN
problems/NNS
./.
Eastern/NNP
Airlines/NNPS
'/POS
creditors/NNS
have/VBP
begun/VBN
exploring/VBG
alternative/JJ
approaches/NNS
to/TO
a/DT
Chapter/NN
11/CD
reorganization/NN
because/IN
they/PRP
are/VBP
unhappy/JJ
with/IN
the/DT
carrier/NN
's/POS
latest/JJS
proposal/NN
./.
Tele-Communications/NNPS
agreed/VBD
to/TO
buy/VB
half/DT
of/IN
Showtime/NNP
Networks/NNPS
from/IN
Viacom/NNP
for/IN
$/$
225/CD
million/CD
./.
The/DT
move/NN
could/MD
pose/VB
a/DT
new/JJ
challenge/NN
to/TO
Time/NNP
Warner/NNP
's/POS
Home/NNP
Box/NNP
Office/NNP
./.
The/DT
CFTC/NNP
plans/NNS
to/TO
curb/VB
dual/JJ
trading/NN
on/IN
commodities/NNS
markets/NNS
,/,
in/IN
which/WDT
traders/NNS
buy/VBP
and/CC
sell/VBP
both/DT
for/IN
their/PRP$
own/JJ
account/NN
and/CC
for/IN
clients/NNS
./.
The/DT
move/NN
is/VBZ
likely/JJ
to/TO
anger/NN
traders/NNS
./.
FDIC/NNP
Chairman/NNP
Seidman/NNP
said/VBD
that/IN
Lincoln/NNP
Savings/NNP
&/CC
Loan/NNP
of/IN
California/NNP
should/MD
have/VB
been/VBN
seized/VBN
in/IN
1986/CD
to/TO
contain/VB
losses/NNS
he/PRP
estimated/VBD
will/MD
cost/VB
taxpayers/NNS
as/RB
much/RB
as/IN
$/$
2/CD
billion/CD
./.
A/DT
$/$
67/CD
billion/CD
spending/VBG
bill/NN
was/VBD
approved/VBN
by/IN
House-Senate/NNP
conferees/NNS
that/WDT
includes/VBZ
major/JJ
provisions/NNS
affecting/VBG
the/DT
federal/JJ
mortgage/NN
market/NN
./.
Hooker/NNP
's/POS
U.S./NNP
unit/NN
is/VBZ
expected/VBN
to/TO
agree/VB
in/IN
principle/NN
this/DT
week/NN
to/TO
sell/VB
its/PRP$
Merksamer/NNP
Jewelers/NNPS
chain/NN
to/TO
management/NN
,/,
according/VBG
to/TO
executives/NNS
./.
The/DT
deficit-reduction/NN
bill/NN
became/VBD
snagged/VBN
over/IN
efforts/NNS
to/TO
streamline/VB
the/DT
House/NN
version/NN
of/IN
the/DT
legislation/NN
in/IN
advance/NN
of/IN
a/DT
House-Senate/NNP
conference/NN
./.
Integrated/NNP
Resources/NNPS
said/VBD
talks/NNS
have/VBP
ended/VBN
with/IN
another/DT
potential/JJ
buyer/NN
of/IN
its/PRP$
core/NN
businesses/NNS
./.
Three/CD
big/JJ
drug/NN
makers/NNS
posted/VBD
robust/JJ
third-quarter/NN
earnings/NNS
./.
Merck/NNP
's/POS
profit/NN
climbed/VBD
25/CD
%/NN
,/,
Warner-Lambert/NNP
's/POS
22/CD
%/NN
and/CC
Eli/NNP
Lilly/NNP
's/POS
24/CD
%/NN
./.
Markets/NNS
--/:
Stocks/NNS
:/:
Volume/NN
224,070,000/CD
shares/NNS
./.
Dow/NNP
Jones/NNP
industrials/NNS
2638.73/CD
,/,
off/IN
18.65/CD
;/:
transportation/NN
1254.27/CD
,/,
off/IN
49.96/CD
;/:
utilities/NNS
214.54/CD
,/,
off/IN
0.19/CD
./.
Bonds/NNS
:/:
Shearson/NNP
Lehman/NNP
Hutton/NNP
Treasury/NNP
index/NN
3377.43/CD
,/,
off/IN
Commodities/NNS
:/:
Dow/NNP
Jones/NNP
futures/NNS
index/NN
129.72/CD
,/,
unchanged/JJ
;/:
spot/NN
index/NN
129.97/CD
,/,
off/IN
0.19/CD
./.
Dollar/NN
:/:
142.75/CD
yen/NN
,/,
up/IN
0.95/CD
;/:
1.8667/CD
marks/NNS
,/,
off/IN
0.0018/CD
./.
Paul/NNP
Ely/NNP
,/,
general/JJ
partner/NN
of/IN
Alpha/NNP
Partners/NNPS
,/,
a/DT
venture-capital/JJ
firm/NN
based/VBN
in/IN
Menlo/NNP
Park/NNP
,/,
Calif./NNP
,/,
was/VBD
named/VBN
a/DT
director/NN
of/IN
this/DT
computer/NN
company/NN
./.
Mr./NNP
Ely/NNP
,/,
57/CD
years/NNS
old/JJ
,/,
temporarily/RB
increases/VBZ
the/DT
board/NN
to/TO
seven/CD
members/NNS
./.
However/RB
,/,
director/NN
Thomas/NNP
O'Rourke/NNP
has/VBZ
said/VBN
he/PRP
wo/MD
n't/RB
seek/VB
re-election/NN
at/IN
the/DT
company/NN
's/POS
annual/JJ
meeting/NN
next/IN
month/NN
./.
BroadBeach/NNP
Associates/NNPS
Inc./NNP
,/,
the/DT
Los/NNP
Angeles/NNP
investment/NN
partnership/NN
whose/WP$
$/$
62-a-share/JJ
bid/NN
for/IN
McGill/NNP
Manufacturing/NNP
Co./NNP
was/VBD
topped/VBN
recently/RB
by/IN
a/DT
competing/VBG
offer/NN
from/IN
a/DT
Swedish/JJ
concern/NN
,/,
disclosed/VBD
that/IN
it/PRP
sold/VBD
its/PRP$
entire/JJ
7/CD
%/NN
McGill/NNP
stake/NN
./.
McGill/NNP
,/,
a/DT
Valparaiso/NNP
,/,
Ind./NNP
,/,
ball-bearing/NN
manufacturer/NN
,/,
had/VBD
rebuffed/VBN
BroadBeach/NNP
's/POS
proposal/NN
./.
It/PRP
has/VBZ
since/IN
asked/VBN
holders/NNS
not/RB
to/TO
immediately/RB
tender/VB
their/PRP$
shares/NNS
under/IN
a/DT
recent/JJ
$/$
72-a-share/JJ
,/,
or/CC
$/$
104/CD
million/CD
,/,
bid/NN
from/IN
AB/NNP
SKF/NNP
of/IN
Sweden/NNP
,/,
until/IN
McGill/NNP
directors/NNS
have/VBP
completed/VBN
their/PRP$
evaluation/NN
./.
In/IN
a/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
filing/NN
,/,
BroadBeach/NNP
said/VBD
it/PRP
sold/VBD
the/DT
101,000/CD
McGill/NNP
shares/NNS
for/IN
$/$
7.3/CD
million/CD
in/IN
a/DT
private/JJ
transaction/NN
on/IN
Oct./NNP
12/CD
./.
BroadBeach/NNP
did/VBD
n't/RB
identify/VB
the/DT
buyer/NN
of/IN
the/DT
shares/NNS
,/,
but/CC
the/DT
date/NN
of/IN
the/DT
selloff/NN
followed/VBN
by/IN
one/CD
day/NN
the/DT
Swedish/JJ
concern/NN
's/POS
tender/NN
offer/NN
,/,
and/CC
the/DT
indicated/VBN
price/NN
of/IN
the/DT
shares/NNS
sold/VBN
equals/VBZ
SKF/NNP
's/POS
$/$
72-a-share/JJ
tender/NN
offer/NN
price/NN
./.
A/DT
BroadBeach/NNP
spokeswoman/NN
said/VBD
the/DT
company/NN
sold/VBD
the/DT
stock/NN
in/IN
the/DT
open/JJ
market/NN
and/CC
thus/RB
could/MD
n't/RB
identify/VB
the/DT
buyer/NN
or/CC
buyers/NNS
./.
Luis/NNP
Nogales/NNP
,/,
45/CD
years/NNS
old/JJ
,/,
has/VBZ
been/VBN
elected/VBN
to/TO
the/DT
board/NN
of/IN
this/DT
brewer/NN
./.
Mr./NNP
Nogales/NNP
,/,
former/JJ
president/NN
of/IN
United/NNP
Press/NNP
International/NNP
and/CC
the/DT
Univision/NNP
Spanish-language/NNP
network/NN
,/,
most/RBS
recently/RB
co-founded/VBD
Nogales/NNP
Castro/NNP
Partners/NNPS
,/,
a/DT
California-based/JJ
media/NNS
acquisition/NN
firm/NN
./.
Mr./NNP
Nogales/NNP
,/,
the/DT
first/RB
Hispanic/JJ
person/NN
to/TO
serve/VB
as/IN
a/DT
Coors/NNP
director/NN
,/,
is/VBZ
an/DT
addition/NN
to/TO
the/DT
board/NN
,/,
increasing/VBG
its/PRP$
membership/NN
to/TO
nine/CD
./.
Hachette/NNP
S.A./NNP
,/,
a/DT
European/JJ
media/NNS
and/CC
publishing/NN
group/NN
,/,
reported/VBD
a/DT
small/JJ
rise/NN
in/IN
its/PRP$
attributable/JJ
first-half/JJ
group/NN
profit/NN
,/,
excluding/VBG
exceptional/JJ
items/NNS
,/,
to/TO
133.8/CD
million/CD
francs/NNS
$/$
21.1/CD
million/CD
130.1/CD
million/CD
francs/NNS
a/DT
year/NN
earlier/RBR
./.
The/DT
Paris-based/JJ
group/NN
said/VBD
its/PRP$
earlier/JJR
projection/NN
--/:
that/IN
group/NN
profit/NN
for/IN
all/DT
of/IN
1989/CD
would/MD
be/VB
close/JJ
to/TO
the/DT
322.7/CD
million/CD
francs/NNS
posted/VBN
for/IN
1988/CD
--/:
remains/VBZ
valid/JJ
./.
Taking/VBG
into/IN
account/NN
nonrecurring/VBG
gains/NNS
and/CC
losses/NNS
,/,
Hachette/NNP
's/POS
group/NN
net/NN
income/NN
for/IN
the/DT
first/JJ
six/CD
months/NNS
of/IN
this/DT
year/NN
totaled/VBD
246.6/CD
million/CD
francs/NNS
,/,
practically/RB
double/RB
the/DT
year-earlier/JJ
figure/NN
of/IN
124.5/CD
million/CD
francs/NNS
./.
Analysts/NNS
said/VBD
Hachette/NNP
's/POS
earnings/NNS
in/IN
the/DT
second/JJ
half/DT
might/MD
be/VB
boosted/VBN
by/IN
a/DT
capital/NN
gain/NN
from/IN
the/DT
sale/NN
of/IN
the/DT
Paris/NNP
headquarters/NN
of/IN
a/DT
newspaper-delivery/NN
company/NN
that/WDT
is/VBZ
49/CD
%/NN
owned/VBN
by/IN
Hachette/NNP
./.
Oncor/NNP
Inc./NNP
,/,
Gaithersburg/NNP
,/,
Md./NNP
,/,
said/VBD
it/PRP
received/VBD
approval/NN
from/IN
the/DT
U.S./NNP
Food/NNP
and/CC
Drug/NNP
Administration/NNP
to/TO
market/VB
a/DT
genetic/JJ
test/NN
that/WDT
will/MD
assist/VB
in/IN
diagnosis/NN
and/CC
treatment/NN
of/IN
leukemia/NN
and/CC
lymph/NN
cancer/NN
./.
The/DT
B\/T/NNP
gene/NN
rearrangement/NN
test/NN
is/VBZ
more/RBR
accurate/JJ
than/IN
existing/VBG
tests/NNS
for/IN
diagnosing/VBG
the/DT
type/NN
of/IN
cancer/NN
,/,
whether/IN
it/PRP
has/VBZ
spread/VBN
or/CC
whether/IN
there/EX
is/VBZ
a/DT
recurrence/NN
following/VBG
treatment/NN
,/,
said/VBD
Oncor/NNP
President/NNP
Stephen/NNP
Turner/NNP
./.
Mr./NNP
Turner/NNP
said/VBD
the/DT
test/NN
initially/RB
will/MD
be/VB
used/VBN
in/IN
conjunction/NN
with/IN
biopsies/NNS
and/CC
other/JJ
tests/NNS
,/,
but/CC
eventually/RB
might/MD
become/VB
the/DT
benchmark/NN
for/IN
tumor/NN
analysis/NN
./.
Mr./NNP
Turner/NNP
said/VBD
the/DT
test/NN
will/MD
be/VB
shipped/VBN
in/IN
45/CD
days/NNS
to/TO
hospitals/NNS
and/CC
clinical/JJ
laboratories/NNS
./.
Dr./NNP
Wyndham/NNP
Wilson/NNP
,/,
a/DT
cancer/NN
treatment/NN
specialist/NN
at/IN
the/DT
National/NNP
Cancer/NNP
Institute/NNP
,/,
said/VBD
the/DT
test/NN
is/VBZ
widely/RB
used/VBN
in/IN
research/NN
centers/NNS
but/CC
is/VBZ
n't/RB
having/VBG
a/DT
major/JJ
impact/NN
because/IN
it/PRP
is/VBZ
only/RB
occasionally/RB
useful/JJ
in/IN
choosing/VBG
the/DT
most/JJS
effective/JJ
treatment/NN
./.
But/CC
the/DT
test/NN
may/MD
prove/VB
to/TO
be/VB
more/RBR
sensitive/JJ
in/IN
determining/VBG
whether/IN
a/DT
tumor/NN
has/VBZ
spread/VBN
or/CC
returned/VBN
following/VBG
treatment/NN
,/,
Dr./NNP
Wilson/NNP
said/VBD
./.
``/``
We/PRP
do/VBP
n't/RB
know/VB
yet/RB
how/WRB
useful/JJ
it/PRP
's/VBZ
going/VBG
to/TO
be/VB
,/,
''/''
he/PRP
said/VBD
./.
Oncor/NNP
,/,
a/DT
six-year-old/JJ
developer/NN
of/IN
genetic/JJ
medical/JJ
tests/NNS
,/,
projects/VBZ
that/IN
the/DT
cancer/NN
test/NN
will/MD
help/VB
it/PRP
to/TO
post/VB
its/PRP$
first-ever/JJ
profit/NN
during/IN
the/DT
first/JJ
quarter/NN
of/IN
1990/CD
,/,
Mr./NNP
Turner/NNP
said/VBD
./.
The/DT
company/NN
will/MD
charge/VB
$/$
35/CD
for/IN
a/DT
test/NN
and/CC
projects/VBZ
about/IN
$/$
2/CD
million/CD
in/IN
revenue/NN
from/IN
the/DT
test/NN
during/IN
the/DT
first/JJ
12/CD
months/NNS
of/IN
marketing/NN
,/,
he/PRP
said/VBD
./.
Unilab/NNP
Corp./NNP
,/,
Norcross/NNP
,/,
Ga./NNP
,/,
said/VBD
it/PRP
acquired/VBD
the/DT
clinical/JJ
laboratories/NNS
of/IN
closely/RB
held/VBN
Central/NNP
Diagnostic/NNP
Laboratory/NNP
Inc./NNP
in/IN
a/DT
cash/NN
and/CC
securities/NNS
transaction/NN
valued/VBN
at/IN
$/$
85/CD
million/CD
./.
Unilab/NNP
said/VBD
its/PRP$
wholly/RB
owned/VBN
MetWest/NNP
Inc./NNP
unit/NN
paid/VBD
$/$
25/CD
million/CD
in/IN
cash/NN
,/,
provided/VBN
$/$
30/CD
million/CD
in/IN
notes/NNS
and/CC
$/$
30/CD
million/CD
in/IN
preferred/VBN
stock/NN
to/TO
acquire/VB
Central/NNP
's/POS
labs/NNS
in/IN
the/DT
Western/NNP
U.S/NNP
./.
Unilab/NNP
,/,
which/WDT
provides/VBZ
clinical/JJ
laboratory/NN
services/NNS
,/,
competed/VBD
with/IN
Central/NNP
,/,
based/VBN
in/IN
Tarzana/NNP
,/,
Calif./NNP
,/,
in/IN
a/DT
number/NN
of/IN
areas/NNS
./.
Beyond/IN
removing/VBG
a/DT
competitor/NN
,/,
the/DT
combination/NN
should/MD
provide/VB
``/``
synergies/NNS
,/,
''/''
said/VBD
Fred/NNP
Harlow/NNP
,/,
Unilab/NNP
's/POS
chief/NN
financial/JJ
officer/NN
./.
It/PRP
also/RB
will/MD
hand/VB
Unilab/NNP
new/JJ
markets/NNS
./.
In/IN
Los/NNP
Angeles/NNP
,/,
for/IN
example/NN
,/,
Central/NNP
has/VBZ
had/VBN
a/DT
strong/JJ
market/NN
position/NN
while/IN
Unilab/NNP
's/POS
presence/NN
has/VBZ
been/VBN
less/RBR
prominent/JJ
,/,
according/VBG
to/TO
Mr./NNP
Harlow/NNP
./.
Consumers/NNS
may/MD
want/VB
to/TO
move/VB
their/PRP$
telephones/NNS
a/DT
little/RB
closer/RBR
to/TO
the/DT
TV/NN
set/NN
./.
Couch-potato/NN
jocks/NNS
watching/VBG
ABC/NNP
's/POS
``/``
Monday/NNP
Night/NNP
Football/NNP
''/''
can/MD
now/RB
vote/VB
during/IN
halftime/NN
for/IN
the/DT
greatest/JJS
play/NN
in/IN
20/CD
years/NNS
from/IN
among/IN
four/CD
or/CC
five/CD
filmed/VBN
replays/NNS
./.
Two/CD
weeks/NNS
ago/RB
,/,
viewers/NNS
of/IN
several/JJ
NBC/NNP
daytime/JJ
consumer/NN
segments/NNS
started/VBD
calling/VBG
a/DT
900/CD
number/NN
for/IN
advice/NN
on/IN
various/JJ
life-style/NN
issues/NNS
./.
And/CC
the/DT
new/JJ
syndicated/JJ
``/``
reality/NN
''/''
show/NN
``/``
Hard/NNP
Copy/NNP
''/''
records/VBZ
viewers/NNS
'/POS
opinions/NNS
for/IN
possible/JJ
airing/NN
on/IN
the/DT
next/JJ
day/NN
's/POS
show/NN
./.
Interactive/JJ
telephone/NN
technology/NN
has/VBZ
taken/VBN
a/DT
new/JJ
leap/NN
in/IN
sophistication/NN
,/,
and/CC
television/NN
programmers/NNS
are/VBP
racing/VBG
to/TO
exploit/VB
the/DT
possibilities/NNS
./.
Eventually/RB
viewers/NNS
may/MD
grow/VB
bored/VBN
with/IN
the/DT
technology/NN
and/CC
resent/VB
the/DT
cost/NN
./.
But/CC
right/RB
now/RB
programmers/NNS
are/VBP
figuring/VBG
that/IN
viewers/NNS
who/WP
are/VBP
busy/JJ
dialing/NN
up/IN
a/DT
range/NN
of/IN
services/NNS
may/MD
put/VB
down/RP
their/PRP$
remote/JJ
control/NN
zappers/NNS
and/CC
stay/VB
tuned/VBN
./.
``/``
We/PRP
've/VBP
been/VBN
spending/VBG
a/DT
lot/NN
of/IN
time/NN
in/IN
Los/NNP
Angeles/NNP
talking/VBG
to/TO
TV/NN
production/NN
people/NNS
,/,
''/''
says/VBZ
Mike/NNP
Parks/NNP
,/,
president/NN
of/IN
Call/NNP
Interactive/NNP
,/,
which/WDT
supplied/VBD
technology/NN
for/IN
both/DT
ABC/NNP
Sports/NNPS
and/CC
NBC/NNP
's/POS
consumer/NN
minutes/NNS
./.
``/``
With/IN
the/DT
competitiveness/NN
of/IN
the/DT
television/NN
market/NN
these/DT
days/NNS
,/,
everyone/NN
is/VBZ
looking/VBG
for/IN
a/DT
way/NN
to/TO
get/VB
viewers/NNS
more/RBR
excited/JJ
./.
''/''
One/CD
of/IN
the/DT
leaders/NNS
behind/IN
the/DT
expanded/VBN
use/NN
of/IN
900/CD
numbers/NNS
is/VBZ
Call/NNP
Interactive/NNP
,/,
a/DT
joint/JJ
venture/NN
of/IN
giants/NNS
American/NNP
Express/NNP
Co./NNP
and/CC
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
Co/NNP
./.
Formed/VBN
in/IN
August/NNP
,/,
the/DT
venture/NN
weds/VBZ
AT&T/NNP
's/POS
newly/RB
expanded/VBN
900/CD
service/NN
with/IN
200/CD
voice-activated/JJ
computers/NNS
in/IN
American/NNP
Express/NNP
's/POS
Omaha/NNP
,/,
Neb./NNP
,/,
service/NN
center/NN
./.
Other/JJ
long-distance/NN
carriers/NNS
have/VBP
also/RB
begun/VBN
marketing/NN
enhanced/VBN
900/CD
service/NN
,/,
and/CC
special/JJ
consultants/NNS
are/VBP
springing/VBG
up/RB
to/TO
exploit/VB
the/DT
new/JJ
tool/NN
./.
Blair/NNP
Entertainment/NNP
,/,
a/DT
New/NNP
York/NNP
firm/NN
that/WDT
advises/VBZ
TV/NN
stations/NNS
and/CC
sells/VBZ
ads/NNS
for/IN
them/PRP
,/,
has/VBZ
just/RB
formed/VBN
a/DT
subsidiary/NN
--/:
900/CD
Blair/NNP
--/:
to/TO
apply/VB
the/DT
technology/NN
to/TO
television/NN
./.
The/DT
use/NN
of/IN
900/CD
toll/NN
numbers/NNS
has/VBZ
been/VBN
expanding/VBG
rapidly/RB
in/IN
recent/JJ
years/NNS
./.
For/IN
a/DT
while/NN
,/,
high-cost/JJ
pornography/NN
lines/NNS
and/CC
services/NNS
that/WDT
tempt/VBP
children/NNS
to/TO
dial/VB
(/(
and/CC
redial/VB
movie/NN
or/CC
music/NN
information/NN
earned/VBD
the/DT
service/NN
a/DT
somewhat/RB
sleazy/JJ
image/NN
,/,
but/CC
new/JJ
legal/JJ
restrictions/NNS
are/VBP
aimed/VBN
at/IN
trimming/VBG
excesses/NNS
./.
The/DT
cost/NN
of/IN
a/DT
900/CD
call/NN
is/VBZ
set/VBN
by/IN
the/DT
originator/NN
--/:
ABC/NNP
Sports/NNPS
,/,
for/IN
example/NN
--/:
with/IN
the/DT
cheapest/JJS
starting/NN
at/IN
75/CD
cents/NNS
./.
Billing/NN
is/VBZ
included/VBN
in/IN
a/DT
caller/NN
's/POS
regular/JJ
phone/NN
bill/NN
./.
From/IN
the/DT
fee/NN
,/,
the/DT
local/JJ
phone/NN
company/NN
and/CC
the/DT
long-distance/NN
carrier/NN
extract/VB
their/PRP$
costs/NNS
to/TO
carry/VB
the/DT
call/NN
,/,
passing/VBG
the/DT
rest/NN
of/IN
the/DT
money/NN
to/TO
the/DT
originator/NN
,/,
which/WDT
must/MD
cover/VB
advertising/NN
and/CC
other/JJ
costs/NNS
./.
In/IN
recent/JJ
months/NNS
,/,
the/DT
technology/NN
has/VBZ
become/VBN
more/RBR
flexible/JJ
and/CC
able/JJ
to/TO
handle/VB
much/RB
more/JJR
volume/NN
./.
Before/IN
,/,
callers/NNS
of/IN
900/CD
numbers/NNS
would/MD
just/RB
listen/VB
and/CC
not/RB
talk/VB
,/,
or/CC
they/PRP
'd/MD
vote/VB
``/``
yes/UH
''/''
or/CC
``/``
no/UH
''/''
by/IN
calling/VBG
one/CD
of/IN
two/CD
numbers/NNS
./.
People/NNS
in/IN
the/DT
phone/NN
business/NN
call/VBP
this/DT
technology/NN
``/``
900/CD
click/NN
./.
''/''
)/)
Now/RB
,/,
callers/NNS
are/VBP
led/VBN
through/IN
complex/JJ
menus/NNS
of/IN
choices/NNS
to/TO
retrieve/VB
information/NN
they/PRP
want/VBP
,/,
and/CC
the/DT
hardware/NN
can/MD
process/VB
10,000/CD
calls/NNS
in/IN
90/CD
seconds/NNS
./.
Up/IN
to/TO
now/RB
,/,
900/CD
numbers/NNS
have/VBP
mainly/RB
been/VBN
used/VBN
on/IN
local/JJ
TV/NN
stations/NNS
and/CC
cable/NN
channels/NNS
./.
MTV/NNP
used/VBD
one/NN
to/TO
give/VB
away/RB
the/DT
house/NN
that/DT
rock/NN
star/NN
Jon/NNP
Bon/NNP
Jovi/NNP
grew/VBD
up/IN
in/RB
./.
For/IN
several/JJ
years/NNS
,/,
Turner/NNP
Broadcasting/NNP
System/NNP
's/POS
Cable/NNP
News/NNP
Network/NNP
has/VBZ
invited/VBN
viewers/NNS
to/TO
respond/VB
nightly/RB
to/TO
topical/JJ
issues/NNS
``/``
Should/NNP
the/DT
U.S./NNP
military/NN
intervene/VB
in/IN
Panama/NNP
?/.
''/''
)/)
,/,
but/CC
even/RB
the/DT
hottest/JJS
controversies/NNS
on/IN
CNN/NNP
log/VBP
only/RB
about/IN
10,000/CD
calls/NNS
./.
The/DT
newest/JJS
uses/NNS
of/IN
the/DT
900-interactive/JJ
technology/NN
demonstrate/VBP
the/DT
growing/VBG
variety/NN
of/IN
applications/NNS
./.
Capital/NNP
Cities\/ABC/NNP

Inc./NNP
,/,
CBS/NNP
Inc./NNP
and/CC
General/NNP
Electric/NNP
Co./NNP
's/POS
National/NNP
Broadcasting/NNP
Co./NNP
unit/NN
are/VBP
expected/VBN
to/TO
announce/VB
soon/RB
a/DT
joint/JJ
campaign/NN
to/TO
raise/VB
awareness/NN
about/IN
hunger/NN
./.
The/DT
subject/NN
will/MD
be/VB
written/VBN
into/IN
the/DT
plots/NNS
of/IN
prime-time/JJ
shows/NNS
,/,
and/CC
viewers/NNS
will/MD
be/VB
given/VBN
a/DT
900/CD
number/NN
to/TO
call/VB
./.
Callers/NNS
will/MD
be/VB
sent/VBN
educational/JJ
booklets/NNS
,/,
and/CC
the/DT
call/NN
's/POS
modest/JJ
cost/NN
will/MD
be/VB
an/DT
immediate/JJ
method/NN
of/IN
raising/VBG
money/NN
./.
Other/JJ
network/NN
applications/NNS
have/VBP
very/RB
different/JJ
goals/NNS
./.
ABC/NNP
Sports/NNPS
was/VBD
looking/VBG
for/IN
ways/NNS
to/TO
lift/VB
deflated/VBN
halftime/NN
ratings/NNS
for/IN
``/``
Monday/NNP
Night/NNP
Football/NNP
./.
''/''
Kurt/NNP
Sanger/NNP
,/,
ABC/NNP
Sports/NNP
's/POS
marketing/NN
director/NN
,/,
says/VBZ
that/IN
now/RB
``/``
tens/NNS
of/IN
thousands/NNS
''/''
of/IN
fans/NNS
call/VBP
its/PRP$
900/CD
number/NN
each/DT
week/NN
to/TO
vote/VB
for/IN
the/DT
best/JJS
punt/NN
return/NN
,/,
quarterback/NN
sack/NN
,/,
etc/FW
./.
Profit/NN
from/IN
the/DT
calls/NNS
goes/VBZ
to/TO
charity/NN
,/,
but/CC
ABC/NNP
Sports/NNPS
also/RB
uses/VBZ
the/DT
calls/NNS
as/IN
a/DT
sales/NNS
tool/NN
:/:
After/IN
thanking/VBG
callers/NNS
for/IN
voting/NN
,/,
Frank/NNP
Gifford/NNP
offers/VBZ
a/DT
football/NN
videotape/NN
for/IN
$/$
19.95/CD
,/,
and/CC
5/CD
%/NN
of/IN
callers/NNS
stay/VBP
on/IN
the/DT
line/NN
to/TO
order/VB
it/PRP
./.
Jackets/NNS
may/MD
be/VB
sold/VBN
next/RB
./.
Meanwhile/RB
,/,
NBC/NNP
Sports/NNPS
recently/RB
began/VBD
``/``
Scores/NNPS
Plus/NNP
,/,
''/''
a/DT
year-round/JJ
,/,
24-hour/JJ
900/CD
line/NN
providing/VBG
a/DT
complex/JJ
array/NN
of/IN
scores/NNS
,/,
analysis/NN
and/CC
fan/NN
news/NN
./.
A/DT
spokesman/NN
said/VBD
its/PRP$
purpose/NN
is/VBZ
``/``
to/TO
bolster/VB
the/DT
impression/NN
that/IN
NBC/NNP
Sports/NNP
is/VBZ
always/RB
there/RB
for/IN
people/NNS
./.
''/''
NBC/NNP
's/POS
``/``
On-Line/JJ
''/''
consumer/NN
minutes/NNS
have/VBP
increased/VBN
advertiser/NN
spending/NN
during/IN
the/DT
day/NN
,/,
the/DT
network/NN
's/POS
weakest/JJS
period/NN
./.
Each/DT
weekday/NN
matches/VBZ
a/DT
sponsor/NN
and/CC
a/DT
topic/NN
:/:
On/IN
Mondays/NNPS
,/,
Unilever/NNP
N.V./NNP
's/POS
Lever/NNP
Bros./NNPS
sponsors/VBZ
tips/NNS
on/IN
diet/NN
and/CC
exercise/NN
,/,
followed/VBN
by/IN
a/DT
30-second/JJ
Lever/NNP
Bros./NNPS
commercial/NN
./.
Viewers/NNS
can/MD
call/VB
a/DT
900/CD
number/NN
for/IN
additional/JJ
advice/NN
,/,
which/WDT
will/MD
be/VB
tailored/VBN
to/TO
their/PRP$
needs/NNS
based/VBN
on/IN
the/DT
numbers/NNS
they/PRP
punch/VBP
(/(
``/``
Press/VB
one/CD
if/IN
you/PRP
're/VBP
pregnant/JJ
,/,
''/''
etc/FW
./.
If/IN
the/DT
caller/NN
stays/VBZ
on/IN
the/DT
line/NN
and/CC
leaves/VBZ
a/DT
name/NN
and/CC
address/NN
for/IN
the/DT
sponsor/NN
,/,
coupons/NNS
and/CC
a/DT
newsletter/NN
will/MD
be/VB
mailed/VBN
,/,
and/CC
the/DT
sponsor/NN
will/MD
be/VB
able/JJ
to/TO
gather/VB
a/DT
list/NN
of/IN
desirable/JJ
potential/JJ
customers/NNS
./.
Diane/NNP
Seaman/NNP
,/,
an/DT
NBC-TV/NNP
vice/NN
president/NN
,/,
says/VBZ
NBC/NNP
has/VBZ
been/VBN
able/JJ
to/TO
charge/VB
premium/JJ
rates/NNS
for/IN
this/DT
ad/NN
time/NN
./.
She/PRP
would/MD
n't/RB
say/VB
what/WP
the/DT
premium/NN
is/VBZ
,/,
but/CC
it/PRP
's/VBZ
believed/VBN
to/TO
be/VB
about/IN
40/CD
%/NN
above/IN
regular/JJ
daytime/JJ
rates/NNS
./.
``/``
We/PRP
were/VBD
able/JJ
to/TO
get/VB
advertisers/NNS
to/TO
use/VB
their/PRP$
promotion/NN
budget/NN
for/IN
this/DT
,/,
because/IN
they/PRP
get/VBP
a/DT
chance/NN
to/TO
do/VB
couponing/NN
,/,
''/''
says/VBZ
Ms./NNP
Seaman/NNP
./.
``/``
And/CC
we/PRP
were/VBD
able/JJ
to/TO
attract/VB
some/DT
new/JJ
advertisers/NNS
because/IN
this/DT
is/VBZ
something/NN
new/JJ
./.
''/''
Mr./NNP
Parks/NNP
of/IN
Call/NNP
Interactive/NNP
says/VBZ
TV/NN
executives/NNS
are/VBP
considering/VBG
the/DT
use/NN
of/IN
900/CD
numbers/NNS
for/IN
``/``
talk/NN
shows/NNS
,/,
game/NN
shows/NNS
,/,
news/NN
and/CC
opinion/NN
surveys/NNS
./.
''/''
Experts/NNS
are/VBP
predicting/VBG
a/DT
big/JJ
influx/NN
of/IN
new/JJ
shows/NNS
in/IN
1990/CD
,/,
when/WRB
a/DT
service/NN
called/VBN
``/``
automatic/JJ
number/NN
information/NN
''/''
will/MD
become/VB
widely/RB
available/JJ
./.
This/DT
service/NN
identifies/VBZ
each/DT
caller/NN
's/POS
phone/NN
number/NN
,/,
and/CC
it/PRP
can/MD
be/VB
used/VBN
to/TO
generate/VB
instant/JJ
mailing/NN
lists/NNS
./.
``/``
Hard/NNP
Copy/NNP
,/,
''/''
the/DT
new/JJ
syndicated/JJ
tabloid/JJ
show/NN
from/IN
Paramount/NNP
Pictures/NNPS
,/,
will/MD
use/VB
its/PRP$
900/CD
number/NN
for/IN
additional/JJ
purposes/NNS
that/WDT
include/VBP
research/NN
,/,
says/VBZ
executive/NN
producer/NN
Mark/NNP
B./NNP
von/NNP
S./NNP
Monsky/NNP
./.
``/``
For/IN
a/DT
piece/NN
on/IN
local/JJ
heroes/NNS
of/IN
World/NNP
War/NNP
II/NNP
,/,
we/PRP
can/MD
ask/VB
people/NNS
to/TO
leave/VB
the/DT
name/NN
and/CC
number/NN
of/IN
anyone/NN
they/PRP
know/VBP
who/WP
won/VBD
a/DT
medal/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
That/DT
'll/MD
save/VB
us/PRP
time/NN
and/CC
get/VB
people/NNS
involved/VBN
./.
''/''
But/CC
Mr./NNP
Monsky/NNP
sees/VBZ
much/RB
bigger/JJR
changes/NNS
ahead/RB
./.
``/``
These/DT
are/VBP
just/RB
baby/NN
steps/NNS
toward/IN
real/JJ
interactive/JJ
video/NN
,/,
which/WDT
I/PRP
believe/VBP
will/MD
be/VB
the/DT
biggest/JJS
thing/NN
yet/RB
to/TO
affect/VB
television/NN
,/,
''/''
he/PRP
says/VBZ
./.
Although/IN
it/PRP
would/MD
be/VB
costly/JJ
to/TO
shoot/VB
multiple/JJ
versions/NNS
,/,
TV/NN
programmers/NNS
could/MD
let/VB
audiences/NNS
vote/VB
on/IN
different/JJ
endings/NNS
for/IN
a/DT
movie/NN
./.
Fox/NNP
Broadcasting/NNP
experimented/VBD
with/IN
this/DT
concept/NN
last/JJ
year/NN
when/WRB
viewers/NNS
of/IN
``/``
Married/JJ
.../:
With/IN
Children/NNP
''/''
voted/VBD
on/IN
whether/IN
Al/NNP
should/MD
say/VB
``/``
I/PRP
love/VBP
you/PRP
''/''
to/TO
Peg/NNP
on/IN
Valentine/NNP
's/POS
Day/NNP
./.
Someday/RB
,/,
viewers/NNS
may/MD
also/RB
choose/VB
different/JJ
depths/NNS
of/IN
news/NN
coverage/NN
./.
``/``
A/DT
menu/NN
by/IN
phone/NN
could/MD
let/VB
you/PRP
decide/VB
,/,
`/``
I/PRP
'm/VBP
interested/JJ
in/IN
just/RB
the/DT
beginning/NN
of/IN
story/NN
No./NN
1/CD
,/,
and/CC
I/PRP
want/VBP
story/NN
No./NN
2/CD
in/IN
depth/NN
,/,
''/''
Mr./NNP
Monsky/NNP
says/VBZ
./.
``/``
You/PRP
'll/MD
start/VB
to/TO
see/VB
shows/NNS
where/WRB
viewers/NNS
program/VBP
the/DT
program/NN
./.
''/''
Integrated/NNP
Resources/NNPS
Inc./NNP
,/,
the/DT
troubled/JJ
financial-services/NNS
company/NN
that/WDT
has/VBZ
been/VBN
trying/VBG
to/TO
sell/VB
its/PRP$
core/NN
companies/NNS
to/TO
restructure/VB
debt/NN
,/,
said/VBD
talks/NNS
with/IN
a/DT
potential/JJ
buyer/NN
ended/VBN
./.
Integrated/NNP
did/VBD
n't/RB
identify/VB
the/DT
party/NN
or/CC
say/VB
why/WRB
the/DT
talks/NNS
failed/VBD
./.
Last/JJ
week/NN
another/DT
potential/JJ
buyer/NN
,/,
Whitehall/NNP
Financial/NNP
Group/NNP
--/:
which/WDT
had/VBD
agreed/VBN
in/IN
August/NNP
to/TO
purchase/VB
most/JJS
of/IN
Integrated/NNP
's/POS
core/NN
companies/NNS
for/IN
$/$
310/CD
million/CD
--/:
ended/VBN
talks/NNS
with/IN
Integrated/NNP
./.
Integrated/NNP
said/VBD
that/IN
it/PRP
would/MD
continue/VB
to/TO
pursue/VB
``/``
other/JJ
alternatives/NNS
''/''
to/TO
sell/VB
the/DT
five/CD
core/NN
companies/NNS
and/CC
that/IN
a/DT
group/NN
of/IN
senior/JJ
executives/NNS
plans/NNS
to/TO
make/VB
a/DT
proposal/NN
to/TO
purchase/VB
three/CD
of/IN
the/DT
companies/NNS
--/:
Integrated/NNP
Resources/NNPS
Equity/NNP
Corp./NNP
,/,
Resources/NNPS
Trust/NNP
Co./NNP
and/CC
Integrated/NNP
Resources/NNPS
Asset/NNP
Management/NNP
Corp/NNP
./.
A/DT
price/NN
was/VBD
n't/RB
disclosed/VBN
./.
Integrated/NNP
also/RB
said/VBD
it/PRP
expects/VBZ
to/TO
report/VB
a/DT
second-quarter/JJ
loss/NN
wider/JJR
than/IN
the/DT
earlier/JJR
estimate/NN
of/IN
about/IN
$/$
600/CD
million/CD
./.
The/DT
company/NN
did/VBD
n't/RB
disclose/VB
the/DT
new/JJ
estimate/NN
but/CC
said/VBD
the/DT
change/NN
was/VBD
related/VBN
to/TO
Integrated/NNP
's/POS
failure/NN
to/TO
sell/VB
its/PRP$
core/NN
businesses/NNS
,/,
as/RB
well/RB
as/IN
``/``
other/JJ
events/NNS
,/,
''/''
which/WDT
it/PRP
did/VBD
n't/RB
detail/NN
,/,
that/WDT
occurred/VBD
after/IN
its/PRP$
announcement/NN
last/JJ
week/NN
that/IN
it/PRP
was/VBD
in/IN
talks/NNS
with/IN
the/DT
unidentified/JJ
prospective/JJ
buyer/NN
./.
Meanwhile/RB
,/,
a/DT
number/NN
of/IN
top/JJ
sales/NNS
producers/NNS
from/IN
Integrated/NNP
Resources/NNPS
Equity/NNP
will/MD
meet/VB
this/DT
afternoon/NN
in/IN
Chicago/NNP
to/TO
discuss/VB
their/PRP$
options/NNS
./.
The/DT
unit/NN
is/VBZ
a/DT
loosely/RB
constructed/VBN
group/NN
of/IN
about/IN
3,900/CD
independent/JJ
brokers/NNS
and/CC
financial/JJ
planners/NNS
who/WP
sell/VBP
insurance/NN
,/,
annuities/NNS
,/,
limited/JJ
partnerships/NNS
,/,
mutual/JJ
funds/NNS
and/CC
other/JJ
investments/NNS
for/IN
Integrated/NNP
and/CC
other/JJ
firms/NNS
./.
The/DT
sales/NNS
force/NN
is/VBZ
viewed/VBN
as/IN
a/DT
critical/JJ
asset/NN
in/IN
Integrated/NNP
's/POS
attempt/NN
to/TO
sell/VB
its/PRP$
core/NN
companies/NNS
./.
Whitehall/NNP
cited/VBD
concerns/NNS
about/IN
how/WRB
long/RB
Integrated/NNP
would/MD
be/VB
able/JJ
to/TO
hold/VB
together/RB
the/DT
sales/NNS
force/NN
as/IN
one/CD
reason/NN
its/PRP$
talks/NNS
with/IN
Integrated/NNP
failed/VBD
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
yesterday/NN
,/,
Integrated/NNP
closed/VBD
at/IN
$/$
1.25/CD
a/DT
share/NN
,/,
down/RB
25/CD
cents/NNS
./.
Integrated/NNP
has/VBZ
been/VBN
struggling/VBG
to/TO
avoid/VB
a/DT
bankruptcy-law/NN
filing/NN
since/IN
June/NNP
,/,
when/WRB
it/PRP
failed/VBD
to/TO
make/VB
interest/NN
payments/NNS
on/IN
nearly/RB
$/$
1/CD
billion/CD
of/IN
debt/NN
./.
Integrated/NNP
senior/JJ
and/CC
junior/JJ
creditors/NNS
are/VBP
owed/VBN
a/DT
total/NN
of/IN
about/IN
$/$
1.8/CD
billion/CD
./.
AN/DT
EARTHQUAKE/NN
STRUCK/VBD
Northern/JJ
California/NNP
,/,
killing/VBG
more/JJR
than/IN
50/CD
people/NNS
./.
The/DT
violent/JJ
temblor/NN
,/,
which/WDT
lasted/VBD
about/IN
15/CD
seconds/NNS
and/CC
registered/VBD
6.9/CD
on/IN
the/DT
Richter/NNP
scale/NN
,/,
also/RB
caused/VBD
the/DT
collapse/NN
of/IN
a/DT
30-foot/JJ
section/NN
of/IN
the/DT
San/NNP
Francisco-Oakland/NNP
Bay/NNP
Bridge/NNP
and/CC
shook/VBD
Candlestick/NNP
Park/NNP
./.
The/DT
tremor/NN
was/VBD
centered/VBN
near/IN
Hollister/NNP
,/,
southeast/NN
of/IN
San/NNP
Francisco/NNP
,/,
and/CC
was/VBD
felt/VBN
as/RB
far/RB
as/IN
200/CD
miles/NNS
away/RB
./.
Numerous/JJ
injuries/NNS
were/VBD
reported/VBN
./.
Some/DT
buildings/NNS
collapsed/VBD
,/,
gas/NN
and/CC
water/NN
lines/NNS
ruptured/VBD
and/CC
fires/NNS
raged/VBD
./.
The/DT
quake/NN
,/,
which/WDT
also/RB
caused/VBD
damage/NN
in/IN
San/NNP
Jose/NNP
and/CC
Berkeley/NNP
,/,
knocked/VBD
out/RP
electricity/NN
and/CC
telephones/NNS
,/,
cracked/VBD
roadways/NNS
and/CC
disrupted/VBD
subway/NN
service/NN
in/IN
the/DT
Bay/NNP
Area/NN
./.
Major/JJ
injuries/NNS
were/VBD
n't/RB
reported/VBN
at/IN
Candlestick/NNP
Park/NNP
,/,
where/WRB
the/DT
third/JJ
game/NN
of/IN
baseball/NN
's/POS
World/NNP
Series/NNP
was/VBD
canceled/VBN
and/CC
fans/NNS
evacuated/VBN
from/IN
the/DT
stadium/NN
./.
Bush/NNP
vowed/VBD
to/TO
veto/VB
a/DT
bill/NN
allowing/VBG
federal/JJ
financing/NN
for/IN
abortions/NNS
in/IN
cases/NNS
of/IN
rape/NN
and/CC
incest/NN
,/,
saying/VBG
tax/NN
dollars/NNS
should/MD
n't/RB
be/VB
used/VBN
to/TO
``/``
compound/VB
a/DT
violent/JJ
act/NN
with/IN
the/DT
taking/NN
of/IN
an/DT
unborn/JJ
life/NN
./.
''/''
His/PRP$
pledge/NN
,/,
in/IN
a/DT
letter/NN
to/TO
Democratic/JJ
Sen./NNP
Byrd/NNP
,/,
came/VBD
ahead/RB
of/IN
an/DT
expected/JJ
Senate/NNP
vote/NN
on/IN
spending/NN
legislation/NN
containing/VBG
the/DT
provision/NN
./.
East/NNP
Germany/NNP
's/POS
Politburo/NNP
met/VBD
amid/IN
speculation/NN
that/IN
the/DT
ruling/NN
body/NN
would/MD
oust/VB
hard-line/JJ
leader/NN
Honecker/NNP
,/,
whose/WP$
rule/NN
has/VBZ
been/VBN
challenged/VBN
by/IN
mass/JJ
emigration/NN
and/CC
calls/NNS
for/IN
democratic/JJ
freedoms/NNS
./.
Meanwhile/RB
,/,
about/IN
125/CD
refugees/NNS
flew/VBD
to/TO
Duesseldorf/NNP
,/,
West/NNP
Germany/NNP
,/,
from/IN
Warsaw/NNP
,/,
the/DT
first/JJ
airlift/NN
in/IN
East/NNP
Germany/NNP
's/POS
refugee/NN
exodus/NN
./.
The/DT
World/NNP
Psychiatric/NNP
Association/NNP
voted/VBD
at/IN
an/DT
Athens/NNP
parley/NN
to/TO
conditionally/RB
readmit/VB
the/DT
Soviet/NNP
Union/NNP
./.
Moscow/NNP
,/,
which/WDT
left/VBD
the/DT
group/NN
in/IN
1983/CD
to/TO
avoid/VB
explusion/NN
over/IN
allegations/NNS
that/IN
political/JJ
dissidents/NNS
were/VBD
being/VBG
certified/VBN
as/IN
insane/JJ
,/,
could/MD
be/VB
suspended/VBN
if/IN
the/DT
misuse/NN
of/IN
psychiatry/NN
against/IN
dissenters/NNS
is/VBZ
discovered/VBN
during/IN
a/DT
review/NN
within/IN
a/DT
year/NN
./.
NASA/NNP
postponed/VBD
the/DT
liftoff/NN
of/IN
the/DT
space/NN
shuttle/NN
Atlantis/NNP
because/RB
of/IN
rain/NN
near/IN
the/DT
site/NN
of/IN
the/DT
launch/NN
pad/NN
in/IN
Cape/NNP
Canaveral/NNP
,/,
Fla/NNP
./.
The/DT
flight/NN
was/VBD
rescheduled/VBN
for/IN
today/NN
./.
The/DT
spacecraft/NN
's/POS
five/CD
astronauts/NNS
are/VBP
to/TO
dispatch/VB
the/DT
nuclear-powered/JJ
Galileo/NNP
space/NN
probe/NN
on/IN
an/DT
exploratory/JJ
mission/NN
to/TO
Jupiter/NNP
./.
Senate/NNP
Democratic/JJ
leaders/NNS
said/VBD
they/PRP
had/VBD
enough/RB
votes/NNS
to/TO
defeat/VB
a/DT
proposed/VBN
constitutional/JJ
amendment/NN
to/TO
ban/VB
flag/NN
burning/NN
./.
The/DT
amendment/NN
is/VBZ
aimed/VBN
at/IN
skirting/VBG
a/DT
Supreme/NNP
Court/NNP
ruling/NN
that/WDT
threw/VBD
out/RP
the/DT
conviction/NN
of/IN
a/DT
Texas/NNP
flag-burner/NN
on/IN
grounds/NNS
that/IN
his/PRP$
freedom/NN
of/IN
speech/NN
was/VBD
violated/VBN
./.
Federal/JJ
researchers/NNS
said/VBD
lung-cancer/NN
mortality/NN
rates/NNS
for/IN
people/NNS
under/IN
45/CD
years/NNS
of/IN
age/NN
have/VBP
begun/VBN
to/TO
decline/VB
,/,
particularly/RB
for/IN
white/JJ
males/NNS
./.
The/DT
National/NNP
Cancer/NNP
Institute/NNP
also/RB
projected/VBD
that/DT
overall/JJ
U.S./NNP
mortality/NN
rates/NNS
from/IN
lung/NN
cancer/NN
should/MD
begin/VB
to/TO
drop/VB
in/IN
several/JJ
years/NNS
if/IN
cigarette/NN
smoking/NN
continues/VBZ
to/TO
abate/VB
./.
Bush/NNP
met/VBD
with/IN
South/JJ
Korean/JJ
President/NNP
Roh/NNP
,/,
who/WP
indicated/VBD
that/IN
Seoul/NNP
plans/VBZ
to/TO
further/RBR
ease/VB
trade/NN
rules/NNS
to/TO
ensure/VB
that/DT
its/PRP$
economy/NN
becomes/VBZ
as/RB
open/JJ
as/IN
the/DT
other/JJ
industrialized/JJ
nations/NNS
by/IN
the/DT
mid-1990s/NNS
./.
Bush/NNP
assured/VBD
Roh/NNP
that/IN
the/DT
U.S./NNP
would/MD
stand/VB
by/IN
its/PRP$
security/NN
commitments/NNS
``/``
as/RB
long/RB
as/IN
there/EX
is/VBZ
a/DT
threat/NN
''/''
from/IN
Communist/NNP
North/NNP
Korea/NNP
./.
The/DT
Bush/NNP
administration/NN
is/VBZ
seeking/VBG
an/DT
understanding/NN
with/IN
Congress/NNP
to/TO
ease/VB
restrictions/NNS
on/IN
U.S./NNP
involvement/NN
in/IN
foreign/JJ
coups/NNS
that/WDT
might/MD
result/VB
in/IN
the/DT
death/NN
of/IN
a/DT
country/NN
's/POS
leader/NN
./.
A/DT
White/NNP
House/NNP
spokesman/NN
said/VBD
that/IN
while/IN
Bush/NNP
would/MD
n't/RB
alter/VB
a/DT
longstanding/JJ
ban/NN
on/IN
such/JJ
involvement/NN
,/,
``/``
there/EX
's/VBZ
a/DT
clarification/NN
needed/VBN
''/''
on/IN
its/PRP$
interpretation/NN
./.
India/NNP
's/POS
Gandhi/NNP
called/VBD
for/IN
parliamentary/JJ
elections/NNS
next/IN
month/NN
./.
The/DT
balloting/NN
,/,
considered/VBN
a/DT
test/NN
for/IN
the/DT
prime/JJ
minister/NN
and/CC
the/DT
ruling/JJ
Congress/NNP
I/NNP
Party/NNP
,/,
comes/VBZ
amid/IN
charges/NNS
of/IN
inept/JJ
leadership/NN
and/CC
government/NN
corruption/NN
./.
Gandhi/NNP
's/POS
family/NN
has/VBZ
ruled/VBN
independent/JJ
India/NNP
for/IN
all/DT
but/CC
five/CD
years/NNS
of/IN
its/PRP$
42-year/JJ
history/NN
./.
The/DT
Soviet/NNP
Union/NNP
abstained/VBD
from/IN
a/DT
U.N./NNP
General/NNP
Assembly/NNP
vote/NN
to/TO
reject/VB
Israel/NNP
's/POS
credentials/NNS
./.
It/PRP
was/VBD
the/DT
first/JJ
time/NN
in/IN
seven/CD
years/NNS
that/IN
Moscow/NNP
has/VBZ
n't/RB
joined/VBN
efforts/NNS
,/,
led/VBN
by/IN
Moslem/NNP
nations/NNS
,/,
to/TO
expel/VB
Israel/NNP
from/IN
the/DT
world/NN
body/NN
,/,
and/CC
was/VBD
viewed/VBN
as/IN
a/DT
sign/NN
of/IN
improving/VBG
Soviet-Israeli/JJ
ties/NNS
./.
Israel/NNP
was/VBD
seated/VBN
by/IN
a/DT
vote/NN
of/IN
95-37/CD
,/,
with/IN
15/CD
abstentions/NNS
./.
Black/JJ
activist/NN
Walter/NNP
Sisulu/NNP
said/VBD
the/DT
African/NNP
National/NNP
Congress/NNP
would/MD
n't/RB
reject/VB
violence/NN
as/IN
a/DT
way/NN
to/TO
pressure/NN
the/DT
South/JJ
African/JJ
government/NN
into/IN
concessions/NNS
that/WDT
might/MD
lead/VB
to/TO
negotiations/NNS
over/IN
apartheid/NN
./.
The/DT
77-year-old/JJ
Sisulu/NNP
was/VBD
among/IN
eight/CD
black/JJ
political/JJ
activists/NNS
freed/VBN
Sunday/NNP
from/IN
prison/NN
./.
London/NNP
has/VBZ
concluded/VBN
that/IN
Austrian/JJ
President/NNP
Waldheim/NNP
was/VBD
n't/RB
responsible/JJ
for/IN
the/DT
execution/NN
of/IN
six/CD
British/JJ
commandos/NNS
in/IN
World/NNP
War/NNP
II/NNP
,/,
although/IN
he/PRP
probably/RB
was/VBD
aware/JJ
of/IN
the/DT
slayings/NNS
./.
The/DT
report/NN
by/IN
the/DT
Defense/NNP
Ministry/NNP
also/RB
rejected/VBD
allegations/NNS
that/IN
Britain/NNP
covered/VBD
up/RP
evidence/NN
of/IN
Waldheim/NNP
's/POS
activities/NNS
as/IN
a/DT
German/JJ
army/NN
officer/NN
./.
An/DT
international/JJ
group/NN
approved/VBD
a/DT
formal/JJ
ban/NN
on/IN
ivory/JJ
trade/NN
despite/IN
objections/NNS
from/IN
southern/JJ
African/JJ
governments/NNS
,/,
which/WDT
threatened/VBD
to/TO
find/VB
alternative/JJ
channels/NNS
for/IN
selling/VBG
elephant/NN
tusks/NNS
./.
The/DT
move/NN
by/IN
the/DT
Convention/NN
on/IN
Trade/NNP
in/IN
Endangered/NNP
Species/NNPS
,/,
meeting/VBG
in/IN
Switzerland/NNP
,/,
places/VBZ
the/DT
elephant/NN
on/IN
the/DT
endangered-species/NNS
list/NN
./.
An/DT
assassin/NN
in/IN
Colombia/NNP
killed/VBD
a/DT
federal/JJ
judge/NN
on/IN
a/DT
Medellin/NNP
street/NN
./.
An/DT
anonymous/JJ
caller/NN
to/TO
a/DT
local/JJ
radio/NN
station/NN
said/VBD
cocaine/NN
traffickers/NNS
had/VBD
slain/VBN
the/DT
magistrate/NN
in/IN
retaliation/NN
for/IN
the/DT
extraditions/NNS
of/IN
Colombians/NNPS
wanted/VBN
on/IN
drug/NN
charges/NNS
in/IN
the/DT
U.S/NNP
./.
Libyan/JJ
leader/NN
Gadhafi/NNP
met/VBN
with/IN
Egypt/NNP
's/POS
President/NNP
Mubarak/NNP
,/,
and/CC
the/DT
two/CD
officials/NNS
pledged/VBD
to/TO
respect/VB
each/DT
other/JJ
's/POS
laws/NNS
,/,
security/NN
and/CC
stability/NN
./.
They/PRP
stopped/VBD
short/RB
of/IN
resuming/VBG
diplomatic/JJ
ties/NNS
,/,
severed/VBN
in/IN
1979/CD
./.
The/DT
reconciliation/NN
talks/NNS
in/IN
the/DT
Libyan/JJ
desert/NN
town/NN
of/IN
Tobruk/NNP
followed/VBD
a/DT
meeting/NN
Monday/NNP
in/IN
the/DT
Egyptian/JJ
resort/NN
of/IN
Mersa/NNP
Metruh/NNP
./.
Alpine/NNP
Group/NNP
Inc./NNP
revised/VBD
its/PRP$
exchange/NN
offer/NN
for/IN
$/$
43.7/CD
million/CD
face/NN
amount/NN
of/IN
13.5/CD
%/NN
senior/JJ
subordinated/JJ
debt/NN
due/JJ
1996/CD
and/CC
extended/VBD
the/DT
offer/NN
to/TO
Oct./NNP
27/CD
from/IN
Oct./NNP
12/CD
./.
The/DT
Hackensack/NNP
,/,
N.J./NNP
,/,
company/NN
said/VBD
holders/NNS
would/MD
receive/VB
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
,/,
$/$
750/CD
face/NN
amount/NN
of/IN
a/DT
new/JJ
issue/NN
of/IN
secured/JJ
senior/JJ
subordinated/JJ
notes/NNS
,/,
convertible/JJ
into/IN
common/JJ
stock/NN
at/IN
an/DT
initial/JJ
rate/NN
of/IN
$/$
6.50/CD
a/DT
share/NN
,/,
and/CC
50/CD
common/JJ
shares/NNS
./.
The/DT
new/JJ
notes/NNS
will/MD
bear/VB
interest/NN
at/IN
5.5/CD
%/NN
through/IN
July/NNP
31/CD
,/,
1991/CD
,/,
and/CC
thereafter/RB
at/IN
10/CD
%/NN
./.
Under/IN
the/DT
original/JJ
proposal/NN
,/,
the/DT
maker/NN
of/IN
specialty/NN
coatings/NNS
and/CC
a/DT
developer/NN
of/IN
information-display/NN
technologies/NNS
offered/VBD
$/$
400/CD
of/IN
notes/NNS
due/JJ
1996/CD
,/,
10/CD
common/JJ
shares/NNS
and/CC
$/$
175/CD
in/IN
cash/NN
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
./.
Completion/NN
of/IN
the/DT
exchange/NN
offer/NN
is/VBZ
subject/JJ
to/TO
the/DT
tender/NN
of/IN
at/IN
least/JJS
80/CD
%/NN
of/IN
the/DT
debt/NN
,/,
among/IN
other/JJ
things/NNS
./.
Alpine/NNP
,/,
which/WDT
said/VBD
it/PRP
does/VBZ
n't/RB
plan/VB
to/TO
further/RBR
extend/VB
the/DT
offer/NN
,/,
said/VBD
it/PRP
received/VBD
$/$
615,000/CD
face/JJ
amount/NN
of/IN
debt/NN
under/IN
the/DT
original/JJ
offer/NN
./.
The/DT
stock/NN
of/IN
UAL/NNP
Corp./NNP
continued/VBD
to/TO
be/VB
pounded/VBN
amid/IN
signs/NNS
that/IN
British/NNP
Airways/NNPS
may/MD
balk/VB
at/IN
any/DT
hasty/JJ
reformulation/NN
of/IN
the/DT
aborted/JJ
$/$
6.79/CD
billion/CD
buy-out/NN
of/IN
United/NNP
Airlines/NNPS
'/POS
parent/NN
./.
UAL/NNP
stock/NN
plummeted/VBD
a/DT
further/JJ
$/$
24.875/CD
to/TO
$/$
198/CD
on/IN
volume/NN
of/IN
more/JJR
than/IN
2.8/CD
million/CD
shares/NNS
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
The/DT
plunge/NN
followed/VBD
a/DT
drop/NN
of/IN
$/$
56.875/CD
Monday/NNP
,/,
amid/IN
indications/NNS
the/DT
takeover/NN
may/MD
take/VB
weeks/NNS
to/TO
be/VB
revived/VBN
./.
The/DT
stock/NN
has/VBZ
fallen/VBN
$/$
87.25/CD
,/,
or/CC
31/CD
%/NN
,/,
in/IN
the/DT
three/CD
trading/NN
days/NNS
since/IN
announcement/NN
of/IN
the/DT
collapse/NN
of/IN
the/DT
$/$
300-a-share/JJ
takeover/NN
jolted/VBD
the/DT
entire/JJ
stock/NN
market/NN
into/IN
its/PRP$
second-worst/JJ
plunge/NN
ever/RB
./.
``/``
This/DT
is/VBZ
a/DT
total/JJ
bloodbath/NN
''/''
for/IN
takeover-stock/NN
traders/NNS
,/,
one/CD
investment/NN
banker/NN
said/VBD
./.
Los/NNP
Angeles/NNP
financier/NN
Marvin/NNP
Davis/NNP
,/,
who/WP
put/VBD
United/NNP
in/IN
play/NN
with/IN
a/DT
$/$
5.4/CD
billion/CD
bid/NN
two/CD
months/NNS
ago/RB
,/,
last/JJ
night/NN
proffered/VBD
both/DT
a/DT
ray/NN
of/IN
hope/NN
and/CC
an/DT
extra/JJ
element/NN
of/IN
uncertainty/NN
by/IN
saying/VBG
he/PRP
remains/VBZ
interested/JJ
in/IN
acquiring/VBG
UAL/NNP
./.
But/CC
he/PRP
dropped/VBD
his/PRP$
earlier/JJ
$/$
300-a-share/JJ
back-up/NN
bid/NN
,/,
saying/VBG
he/PRP
must/MD
first/RB
explore/VB
bank/NN
financing/NN
./.
Even/RB
as/IN
Citicorp/NNP
and/CC
Chase/NNP
Manhattan/NNP
Corp./NNP
scrambled/VBD
to/TO
line/VB
up/RP
bank/NN
financing/NN
for/IN
a/DT
revised/JJ
version/NN
of/IN
the/DT
lapsed/JJ
labor-management/NN
bid/NN
,/,
British/NNP
Airways/NNPS
,/,
a/DT
15/CD
%/NN
partner/NN
in/IN
the/DT
buying/NN
group/NN
,/,
indicated/VBD
it/PRP
wants/VBZ
to/TO
start/VB
from/IN
scratch/NN
./.
Its/PRP$
partners/NNS
are/VBP
United/NNP
's/POS
pilots/NNS
,/,
who/WP
were/VBD
to/TO
own/VB
75/CD
%/NN
,/,
and/CC
UAL/NNP
management/NN
at/IN
10/CD
%/NN
./.
Adding/VBG
insult/NN
to/TO
injury/NN
,/,
United/NNP
's/POS
25,000-member/JJ
Machinists/NNS
'/POS
union/NN
,/,
which/WDT
helped/VBD
scuttle/VB
financing/NN
for/IN
the/DT
first/JJ
bid/NN
,/,
yesterday/NN
asked/VBD
UAL/NNP
Chairman/NNP
Stephen/NNP
Wolf/NNP
and/CC
other/JJ
UAL/NNP
directors/NNS
to/TO
resign/VB
./.
A/DT
similar/JJ
demand/NN
was/VBD
made/VBN
by/IN
a/DT
group/NN
that/WDT
represents/VBZ
some/DT
of/IN
United/NNP
's/POS
26,000/CD
noncontract/JJ
employees/NNS
./.
John/NNP
Peterpaul/NNP
,/,
Machinists/NNS
union/NN
general/JJ
vice/NN
president/NN
,/,
attacked/VBD
Mr./NNP
Wolf/NNP
as/IN
``/``
greedy/JJ
and/CC
irresponsible/JJ
''/''
for/IN
pursuing/VBG
the/DT
buy-out/NN
./.
Although/IN
Mr./NNP
Wolf/NNP
and/CC
John/NNP
Pope/NNP
,/,
UAL/NNP
's/POS
chief/JJ
financial/JJ
officer/NN
,/,
stood/VBD
to/TO
pocket/VB
$/$
114.3/CD
million/CD
for/IN
stock/NN
and/CC
options/NNS
in/IN
the/DT
buy-out/NN
,/,
UAL/NNP
executives/NNS
planned/VBD
to/TO
reinvest/VB
only/RB
$/$
15/CD
million/CD
in/IN
the/DT
new/JJ
company/NN
./.
The/DT
blue-collar/JJ
machinists/NNS
,/,
longtime/NN
rivals/NNS
of/IN
the/DT
white-collar/JJ
pilots/NNS
,/,
say/VBP
the/DT
buyout/NN
would/MD
load/VB
the/DT
company/NN
with/IN
debt/NN
and/CC
weaken/VB
its/PRP$
finances/NNS
./.
Confusion/NN
about/IN
the/DT
two/CD
banks/NNS
'/POS
hurried/JJ
efforts/NNS
to/TO
round/VB
up/RP
financing/NN
for/IN
a/DT
new/JJ
bid/NN
that/IN
the/DT
UAL/NNP
board/NN
has/VBZ
n't/RB
even/RB
seen/VBN
yet/CC
helped/VBD
send/VB
UAL/NNP
stock/NN
spiraling/VBG
downward/RB
./.
And/CC
rumors/NNS
of/IN
forced/JJ
selling/NN
by/IN
takeover-stock/NN
traders/NNS
triggered/VBD
a/DT
25-point/JJ
downdraft/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
around/IN
11:15/CD
a.m./RB
EDT/NNP
yesterday/NN
./.
Yesterday/NN
's/POS
selling/NN
began/VBD
after/IN
a/DT
Japanese/JJ
news/NN
agency/NN
reported/VBD
that/IN
Japanese/JJ
banks/NNS
,/,
which/WDT
balked/VBD
at/IN
the/DT
first/JJ
bid/NN
,/,
were/VBD
ready/JJ
to/TO
reject/VB
a/DT
revised/VBN
version/NN
at/IN
around/IN
$/$
250/CD
a/DT
share/NN
,/,
or/CC
$/$
5.65/CD
billion/CD
./.
Several/JJ
reports/NNS
as/IN
the/DT
day/NN
progressed/VBD
gave/VBD
vague/JJ
or/CC
conflicting/JJ
indications/NNS
about/IN
whether/IN
banks/NNS
would/MD
sign/VB
up/RB
./.
Citicorp/NNP
,/,
for/IN
example/NN
,/,
said/VBD
only/RB
that/IN
it/PRP
had/VBD
``/``
expressions/NNS
of/IN
interest/NN
of/IN
a/DT
transaction/NN
from/IN
both/DT
the/DT
borrowers/NNS
and/CC
the/DT
banks/NNS
,/,
''/''
but/CC
did/VBD
n't/RB
have/VB
an/DT
agreement/NN
./.
Late/RB
in/IN
the/DT
day/NN
,/,
Mr./NNP
Wolf/NNP
issued/VBD
a/DT
onepage/JJ
statement/NN
calling/VBG
Mr./NNP
Peterpaul/NNP
's/POS
blast/NN
``/``
divisive/JJ
and/CC
uncalled/JJ
for/IN
./.
''/''
But/CC
he/PRP
gave/VBD
few/JJ
details/NNS
on/IN
the/DT
progress/NN
toward/IN
a/DT
new/JJ
bid/NN
,/,
saying/VBG
only/RB
,/,
``/``
We/PRP
are/VBP
working/VBG
toward/IN
a/DT
revised/VBN
proposal/NN
for/IN
majority/NN
employee/NN
ownership/NN
./.
''/''
Meanwhile/RB
,/,
in/IN
another/DT
sign/NN
that/IN
a/DT
new/JJ
bid/NN
is/VBZ
n't/RB
imminent/JJ
,/,
it/PRP
was/VBD
learned/VBN
that/IN
the/DT
UAL/NNP
board/NN
held/VBD
a/DT
telephone/NN
meeting/NN
Monday/NNP
to/TO
hear/VB
an/DT
update/NN
on/IN
the/DT
situation/NN
,/,
but/CC
that/IN
a/DT
formal/JJ
board/NN
meeting/NN
is/VBZ
n't/RB
likely/JJ
to/TO
be/VB
convened/VBN
until/IN
early/JJ
next/JJ
week/NN
./.
In/IN
London/NNP
,/,
British/NNP
Airways/NNPS
Chairman/NN
Lord/NNP
King/NNP
was/VBD
quoted/VBN
in/IN
the/DT
Times/NNP
as/IN
declaring/VBG
he/PRP
is/VBZ
``/``
not/RB
prepared/JJ
to/TO
take/VB
my/PRP$
shareholders/NNS
into/IN
a/DT
hasty/JJ
deal/NN
./.
''/''
Observers/NNS
said/VBD
it/PRP
appeared/VBD
that/IN
British/NNP
Air/NNP
was/VBD
angered/VBN
at/IN
the/DT
way/NN
the/DT
bid/NN
has/VBZ
degenerated/VBN
into/IN
confusion/NN
,/,
as/RB
well/RB
as/IN
by/IN
the/DT
banks/NNS
'/POS
effort/NN
to/TO
round/VB
up/RP
financing/NN
for/IN
what/WP
one/PRP
called/VBD
``/``
a/DT
deal/NN
that/WDT
is/VBZ
n't/RB
a/DT
deal/NN
./.
''/''
The/DT
effort/NN
to/TO
revive/VB
the/DT
bid/NN
was/VBD
complicated/VBN
by/IN
the/DT
unwieldy/JJ
nature/NN
of/IN
the/DT
three-party/JJ
buying/NN
group/NN
./.
The/DT
pilots/NNS
were/VBD
meeting/VBG
outside/IN
Chicago/NNP
yesterday/NN
./.
But/CC
British/NNP
Air/NNP
,/,
which/WDT
was/VBD
to/TO
have/VB
supplied/VBN
$/$
750/CD
million/CD
out/IN
of/IN
$/$
965/CD
million/CD
in/IN
equity/NN
financing/NN
,/,
apparently/RB
was/VBD
n't/RB
involved/JJ
in/IN
the/DT
second/JJ
proposal/NN
and/CC
could/MD
well/RB
reject/VB
it/PRP
even/RB
if/IN
banks/NNS
obtain/VBP
financing/NN
./.
A/DT
group/NN
of/IN
United/NNP
's/POS
noncontract/JJ
employees/NNS
said/VBD
in/IN
a/DT
statement/NN
,/,
``/``
The/DT
fact/NN
that/DT
Wolf/NNP
and/CC
other/JJ
officers/NNS
were/VBD
going/VBG
to/TO
line/VB
their/PRP$
pockets/NNS
with/IN
literally/RB
millions/NNS
of/IN
dollars/NNS
while/IN
instituting/VBG
severe/JJ
pay/NN
cuts/NNS
on/IN
the/DT
nonunion/JJ
employees/NNS
of/IN
United/NNP
is/VBZ
not/RB
only/RB
deplorable/JJ
but/CC
inexcusable/JJ
./.
''/''
The/DT
machinists/NNS
also/RB
asked/VBD
for/IN
an/DT
investigation/NN
by/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
into/IN
possible/JJ
securities-law/NN
violations/NNS
in/IN
the/DT
original/JJ
bid/NN
for/IN
UAL/NNP
by/IN
Mr./NNP
Davis/NNP
,/,
as/RB
well/RB
as/IN
in/IN
the/DT
response/NN
by/IN
UAL/NNP
./.
Last/JJ
week/NN
,/,
just/RB
before/IN
the/DT
bank/NN
commitments/NNS
were/VBD
due/JJ
,/,
the/DT
union/NN
asked/VBD
the/DT
U.S./NNP
Labor/NNP
Department/NNP
to/TO
study/VB
whether/IN
the/DT
bid/NN
violated/VBD
legal/JJ
standards/NNS
of/IN
fairness/NN
governing/VBG
employee/NN
investment/NN
funds/NNS
./.
In/IN
his/PRP$
statement/NN
,/,
Mr./NNP
Wolf/NNP
said/VBD
,/,
``/``
We/PRP
continue/VBP
to/TO
believe/VB
our/PRP$
approach/NN
is/VBZ
sound/JJ
,/,
and/CC
that/IN
it/PRP
is/VBZ
far/RB
better/JJR
for/IN
all/DT
employees/NNS
than/IN
the/DT
alternative/NN
of/IN
having/VBG
an/DT
outsider/NN
own/VB
the/DT
company/NN
with/IN
employees/NNS
paying/VBG
for/IN
it/PRP
just/RB
the/DT
same/JJ
./.
''/''
Mr./NNP
Wolf/NNP
has/VBZ
eschewed/VBN
merger/NN
advice/NN
from/IN
a/DT
major/JJ
Wall/NNP
Street/NNP
securities/NNS
firm/NN
,/,
relying/VBG
instead/RB
only/RB
on/IN
a/DT
takeover/NN
lawyer/NN
,/,
Peter/NNP
Atkins/NNP
of/IN
Skadden/NNP
Arps/NNP
Slate/NNP
Meagher/NNP
&/CC
Flom/NNP
./.
The/DT
huge/JJ
drop/NN
in/IN
UAL/NNP
stock/NN
prompted/VBD
one/CD
takeover/NN
stock/NN
trader/NN
,/,
George/NNP
Kellner/NNP
,/,
managing/NN
partner/NN
of/IN
Kellner/NNP
,/,
DiLeo/NNP
&/CC
Co./NNP
,/,
to/TO
deny/VB
publicly/RB
rumors/NNS
that/IN
his/PRP$
firm/NN
was/VBD
going/VBG
out/IN
of/IN
business/NN
./.
Mr./NNP
Kellner/NNP
said/VBD
that/IN
despite/IN
losses/NNS
on/IN
UAL/NNP
stock/NN
,/,
his/PRP$
firm/NN
's/POS
health/NN
is/VBZ
``/``
excellent/JJ
./.
''/''
The/DT
stock/NN
's/POS
decline/NN
also/RB
has/VBZ
left/VBN
the/DT
UAL/NNP
board/NN
in/IN
a/DT
quandary/NN
./.
Although/IN
it/PRP
may/MD
not/RB
be/VB
legally/RB
obligated/VBN
to/TO
sell/VB
the/DT
company/NN
if/IN
the/DT
buy-out/NN
group/NN
ca/MD
n't/RB
revive/VB
its/PRP$
bid/NN
,/,
it/PRP
may/MD
have/VB
to/TO
explore/VB
alternatives/NNS
if/IN
the/DT
buyers/NNS
come/VBP
back/RB
with/IN
a/DT
bid/NN
much/RB
lower/JJR
than/IN
the/DT
group/NN
's/POS
original/JJ
$/$
300-a-share/JJ
proposal/NN
./.
At/IN
a/DT
meeting/NN
Sept./NNP
1/CD
to/TO
consider/VB
the/DT
labor-management/NN
bid/NN
,/,
the/DT
board/NN
also/RB
was/VBD
informed/VBN
by/IN
its/PRP$
investment/NN
adviser/NN
,/,
First/NNP
Boston/NNP
Corp./NNP
,/,
of/IN
interest/NN
expressed/VBN
by/IN
buy-out/NN
funds/NNS
including/VBG
Kohlberg/NNP
Kravis/NNP
Roberts/NNP
&/CC
Co./NNP
and/CC
Forstmann/NNP
Little/NNP
&/CC
Co./NNP
,/,
as/RB
well/RB
as/IN
by/IN
Robert/NNP
Bass/NNP
,/,
Morgan/NNP
Stanley/NNP
's/POS
buy-out/NN
fund/NN
,/,
and/CC
Pan/NNP
Am/NNP
Corp/NNP
./.
The/DT
takeover-stock/NN
traders/NNS
were/VBD
hoping/VBG
that/IN
Mr./NNP
Davis/NNP
or/CC
one/CD
of/IN
the/DT
other/JJ
interested/JJ
parties/NNS
might/MD
re-emerge/VB
with/IN
the/DT
situation/NN
in/IN
disarray/NN
,/,
or/CC
that/IN
the/DT
board/NN
might/MD
consider/VB
a/DT
recapitalization/NN
./.
Meanwhile/RB
,/,
Japanese/JJ
bankers/NNS
said/VBD
they/PRP
were/VBD
still/RB
hesitant/JJ
about/IN
accepting/VBG
Citicorp/NNP
's/POS
latest/JJS
proposal/NN
./.
Macmillan/NNP
Inc./NNP
said/VBD
it/PRP
plans/VBZ
a/DT
public/JJ
offering/NN
of/IN
8.4/CD
million/CD
shares/NNS
of/IN
its/PRP$
Berlitz/NNP
International/NNP
Inc./NNP
unit/NN
at/IN
$/$
19/CD
to/TO
$/$
21/CD
a/DT
share/NN
./.
The/DT
offering/NN
for/IN
the/DT
language/NN
school/NN
unit/NN
was/VBD
announced/VBN
by/IN
Robert/NNP
Maxwell/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
of/IN
London-based/JJ
Maxwell/NNP
Communication/NNP
Corp./NNP
,/,
which/WDT
owns/VBZ
Macmillan/NNP
./.
After/IN
the/DT
offering/NN
is/VBZ
completed/VBN
,/,
Macmillan/NNP
will/MD
own/VB
about/IN
56/CD
%/NN
of/IN
the/DT
Berlitz/NNP
common/JJ
stock/NN
outstanding/JJ
./.
Five/CD
million/CD
shares/NNS
will/MD
be/VB
offered/VBN
in/IN
the/DT
U.S./NNP
,/,
and/CC
3.4/CD
million/CD
additional/JJ
shares/NNS
will/MD
be/VB
offered/VBN
in/IN
concurrent/JJ
international/JJ
offerings/NNS
outside/IN
the/DT
U.S/NNP
./.
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
will/MD
manage/VB
the/DT
offering/NN
./.
Macmillan/NNP
said/VBD
Berlitz/NNP
intends/VBZ
to/TO
pay/VB
quarterly/JJ
dividends/NNS
on/IN
the/DT
stock/NN
./.
The/DT
company/NN
said/VBD
it/PRP
expects/VBZ
to/TO
pay/VB
the/DT
first/JJ
dividend/NN
,/,
of/IN
12.5/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
1990/CD
first/JJ
quarter/NN
./.
Berlitz/NNP
will/MD
borrow/VB
an/DT
amount/NN
equal/JJ
to/TO
its/PRP$
expected/JJ
net/JJ
proceeds/NNS
from/IN
the/DT
offerings/NNS
,/,
plus/CC
$/$
50/CD
million/CD
,/,
in/IN
connection/NN
with/IN
a/DT
credit/NN
agreement/NN
with/IN
lenders/NNS
./.
The/DT
total/JJ
borrowing/NN
will/MD
be/VB
about/IN
$/$
208/CD
million/CD
,/,
the/DT
company/NN
said/VBD
./.
Proceeds/NNS
from/IN
the/DT
borrowings/NNS
under/IN
the/DT
credit/NN
agreement/NN
will/MD
be/VB
used/VBN
to/TO
pay/VB
an/DT
$/$
80/CD
million/CD
cash/NN
dividend/NN
to/TO
Macmillan/NNP
and/CC
to/TO
lend/VB
the/DT
remainder/NN
of/IN
about/IN
$/$
128/CD
million/CD
to/TO
Maxwell/NNP
Communications/NNPS
in/IN
connection/NN
with/IN
a/DT
promissory/JJ
note/NN
./.
Proceeds/NNS
from/IN
the/DT
offering/NN
will/MD
be/VB
used/VBN
to/TO
repay/VB
borrowings/NNS
under/IN
the/DT
short-term/JJ
parts/NNS
of/IN
a/DT
credit/NN
agreement/NN
./.
Berlitz/NNP
,/,
which/WDT
is/VBZ
based/VBN
in/IN
Princeton/NNP
,/,
N.J./NNP
,/,
provides/VBZ
language/NN
instruction/NN
and/CC
translation/NN
services/NNS
through/IN
more/JJR
than/IN
260/CD
language/NN
centers/NNS
in/IN
25/CD
countries/NNS
./.
In/IN
the/DT
past/JJ
five/CD
years/NNS
,/,
more/JJR
than/IN
68/CD
%/NN
of/IN
its/PRP$
sales/NNS
have/VBP
been/VBN
outside/IN
the/DT
U.S/NNP
./.
Macmillan/NNP
has/VBZ
owned/VBN
Berlitz/NNP
since/IN
1966/CD
./.
In/IN
the/DT
first/JJ
six/CD
months/NNS
of/IN
this/DT
year/NN
,/,
Berlitz/NNP
posted/VBD
net/JJ
income/NN
of/IN
$/$
7.6/CD
million/CD
on/IN
sales/NNS
of/IN
$/$
106.2/CD
million/CD
,/,
compared/VBN
with/IN
net/JJ
income/NN
of/IN
$/$
8.2/CD
million/CD
on/IN
sales/NNS
of/IN
$/$
90.6/CD
million/CD
./.
Right/RB
away/RB
you/PRP
notice/VBP
the/DT
following/VBG
things/NNS
about/IN
a/DT
Philip/NNP
Glass/NNP
concert/NN
./.
It/PRP
attracts/VBZ
people/NNS
with/IN
funny/JJ
hair/NN
no/DT
hair/NN
--/:
in/IN
front/NN
of/IN
me/PRP
a/DT
girl/NN
with/IN
spiked/JJ
locks/NNS
sat/VBD
beside/IN
a/DT
boy/NN
who/WP
had/VBD
shaved/VBN
his/PRP$
Whoever/WP
constitute/VB
the/DT
local/JJ
Left/NNP
Bank/NNP
come/VB
out/RB
in/IN
force/NN
,/,
dressed/VBN
in/IN
black/JJ
,/,
along/IN
with/IN
a/DT
smattering/NN
of/IN
yuppies/NNS
who/WP
want/VBP
to/TO
be/VB
on/IN
the/DT
cutting/JJ
edge/NN
./.
People/NNS
in/IN
Glass/NNP
houses/NNS
tend/VBP
to/TO
look/VB
stoned/VBN
./.
And/CC
,/,
if/IN
still/RB
conscious/JJ
at/IN
the/DT
evening/NN
's/POS
end/NN
,/,
you/PRP
notice/VBP
something/NN
else/RB
:/:
The/DT
audience/NN
,/,
at/IN
first/JJ
entranced/VBN
and/CC
hypnotized/VBN
by/IN
the/DT
music/NN
,/,
releases/VBZ
its/PRP$
pent-up/JJ
feelings/NNS
in/IN
collective/JJ
gratitude/NN
./.
Currently/RB
in/IN
the/DT
middle/NN
of/IN
a/DT
four-week/JJ
,/,
20-city/JJ
tour/NN
as/IN
a/DT
solo/NN
pianist/NN
,/,
Mr./NNP
Glass/NNP
has/VBZ
left/VBN
behind/IN
his/PRP$
synthesizers/NNS
,/,
equipment/NN
and/CC
collaborators/NNS
in/IN
favor/NN
of/IN
going/VBG
it/PRP
alone/RB
./.
He/PRP
sits/VBZ
down/RB
at/IN
the/DT
piano/NN
and/CC
plays/NNS
./.
And/CC
plays/NNS
./.
Either/CC
one/NN
likes/VBZ
it/PRP
or/CC
one/NN
does/VBZ
n't/RB
./.
The/DT
typical/JJ
Glass/NNP
audience/NN
,/,
which/WDT
is/VBZ
more/RBR
likely/JJ
to/TO
be/VB
composed/VBN
of/IN
music/NN
students/NNS
than/IN
their/PRP$
teachers/NNS
,/,
certainly/RB
does/VBZ
./.
The/DT
work/NN
,/,
though/RB
,/,
sounds/VBZ
like/IN
Muzak/NNP
for/IN
spaceships/NNS
./.
Philip/NNP
Glass/NNP
is/VBZ
the/DT
emperor/NN
,/,
and/CC
his/PRP$
music/NN
the/DT
new/JJ
clothes/NNS
,/,
of/IN
the/DT
avant-garde/NN
./.
His/PRP$
success/NN
is/VBZ
easy/JJ
to/TO
understand/VB
./.
Softly/RB
introducing/VBG
and/CC
explaining/VBG
his/PRP$
pieces/NNS
,/,
Mr./NNP
Glass/NNP
looks/VBZ
and/CC
sounds/VBZ
more/JJR
like/IN
a/DT
shaggy/JJ
poet/NN
describing/VBG
his/PRP$
work/NN
than/IN
a/DT
classical/JJ
pianist/NN
playing/VBG
a/DT
recital/NN
./.
The/DT
piano/NN
compositions/NNS
,/,
which/WDT
have/VBP
been/VBN
labeled/VBN
variously/RB
as/IN
minimalist/JJ
,/,
Oriental/JJ
,/,
repetitive/JJ
,/,
cyclical/JJ
,/,
monophonic/JJ
and/CC
hypnotic/JJ
,/,
are/VBP
relentlessly/RB
tonal/JJ
rhythmic/JJ
soporific/JJ
unmelodic/JJ
both/DT
pretty/JJ
and/CC
unconventional/JJ
It/PRP
is/VBZ
music/NN
for/IN
people/NNS
who/WP
want/VBP
to/TO
hear/VB
something/NN
different/JJ
but/CC
do/VBP
n't/RB
want/VB
to/TO
work/VB
especially/RB
hard/RB
at/IN
the/DT
task/NN
./.
It/PRP
is/VBZ
E-Z/JJ
listening/NN
for/IN
the/DT
now/JJ
generation/NN
./.
Mr./NNP
Glass/NNP
has/VBZ
inverted/VBN
the/DT
famous/JJ
modernist/NN
dictum/NN
``/``
less/JJR
is/VBZ
more/JJR
./.
''/''
His/PRP$
more/JJR
is/VBZ
always/RB
less/JJR
./.
Far/RB
from/IN
being/VBG
minimalist/NN
,/,
the/DT
music/NN
unabatingly/RB
torments/VBZ
us/PRP
with/IN
apparent/JJ
novelties/NNS
not/RB
so/RB
cleverly/RB
disguised/VBN
in/IN
the/DT
simplicities/NNS
of/IN
4\/4/CD
time/NN
,/,
octave/JJ
intervals/NNS
,/,
and/CC
ragtime/NN
or/CC
gospel/NN
chord/NN
progressions/NNS
./.
But/CC
the/DT
music/NN
has/VBZ
its/PRP$
charm/NN
,/,
and/CC
Mr./NNP
Glass/NNP
has/VBZ
constructed/VBN
his/PRP$
solo/NN
program/NN
around/IN
a/DT
move/NN
from/IN
the/DT
simple/NN
to/TO
the/DT
relatively/RB
complex/JJ
./.
``/``
Opening/NN
''/''
(/(
1981/CD
Glassworks/NNP
,/,
introduces/VBZ
the/DT
audience/NN
to/TO
the/DT
Glass/NNP
technique/NN
:/:
Never/RB
straying/VBG
too/RB
far/RB
from/IN
the/DT
piano/NN
's/POS
center/NN
,/,
Mr./NNP
Glass/NNP
works/VBZ
in/IN
the/DT
two/CD
octaves/NNS
on/IN
either/DT
side/NN
of/IN
middle/JJ
C/NNP
,/,
and/CC
his/PRP$
fingers/NNS
seldom/RB
leave/VBP
the/DT
keys/NNS
./.
There/EX
is/VBZ
a/DT
recognizable/JJ
musical/JJ
style/NN
here/RB
,/,
but/CC
not/RB
a/DT
particular/JJ
performance/NN
style/NN
./.
The/DT
music/NN
is/VBZ
not/RB
especially/RB
pianistic/JJ
;/:
indeed/RB
,/,
it/PRP
's/VBZ
hard/JJ
to/TO
imagine/VB
a/DT
bad/JJ
performance/NN
of/IN
it/PRP
./.
Nothing/NN
bravura/NN
,/,
no/DT
arpeggios/NNS
,/,
no/DT
ticklish/JJ
fingering/NN
problems/NNS
challenge/VBP
the/DT
performer/NN
./.
We/PRP
hear/VBP
,/,
we/PRP
may/MD
think/VB
,/,
inner/JJ
voices/NNS
,/,
but/CC
they/PRP
all/DT
seem/VBP
to/TO
be/VB
saying/VBG
the/DT
same/JJ
thing/NN
./.
With/IN
``/``
Planet/NN
News/NN
,/,
''/''
music/NN
meant/VBN
to/TO
accompany/VB
readings/NNS
of/IN
Allen/NNP
Ginsberg/NNP
's/POS
``/``
Wichita/NNP
Vortex/NN
Sutra/NN
,/,
''/''
Mr./NNP
Glass/NNP
gets/VBZ
going/VBG
./.
His/PRP$
hands/NNS
sit/VBP
farther/RBR
apart/RB
on/IN
the/DT
keyboard/NN
./.
Seventh/JJ
chords/NNS
make/VBP
you/PRP
feel/VB
as/IN
though/IN
he/PRP
may/MD
break/VB
into/IN
a/DT
very/RB
slow/JJ
improvisatory/JJ
riff/NN
./.
The/DT
chords/NNS
modulate/VBP
,/,
but/CC
there/EX
is/VBZ
little/RB
filigree/JJ
even/RB
though/IN
his/PRP$
fingers/NNS
begin/VBP
to/TO
wander/VB
over/IN
more/JJR
of/IN
the/DT
keys/NNS
./.
Contrasts/NNS
predictably/RB
accumulate/VBP
:/:
First/RB
the/DT
music/NN
is/VBZ
loud/JJ
,/,
then/RB
it/PRP
becomes/VBZ
soft/JJ
,/,
then/RB
(/(
you/PRP
realize/VBP
)/)
it/PRP
becomes/VBZ
louder/JJR
again/RB
./.
``/``
The/DT
Fourth/JJ
Knee/NN
Play/NN
,/,
''/''
an/DT
interlude/NN
from/IN
``/``
Einstein/NNP
on/IN
the/DT
Beach/NN
,/,
''/''
is/VBZ
like/IN
a/DT
toccata/NN
but/CC
it/PRP
does/VBZ
n't/RB
seem/VB
to/TO
move/VB
much/RB
beyond/IN
its/PRP$
left-hand/JJ
ground/NN
in/IN
``/``
Three/CD
Blind/JJ
Mice/NNS
./.
''/''
When/WRB
Mr./NNP
Glass/NNP
decides/VBZ
to/TO
get/VB
really/RB
fancy/JJ
,/,
he/PRP
crosses/VBZ
his/PRP$
hands/NNS
and/CC
hits/VBZ
a/DT
resonant/JJ
bass/NN
note/NN
with/IN
his/PRP$
right/JJ
hand/NN
./.
He/PRP
does/VBZ
this/DT
in/IN
at/IN
least/JJS
three/CD
of/IN
his/PRP$
solo/NN
pieces/NNS
./.
You/PRP
might/MD
call/VB
it/PRP
a/DT
leitmotif/NN
or/CC
a/DT
virtuoso/NN
accomplishment/NN
./.
In/IN
``/``
Mad/JJ
Rush/NN
,/,
''/''
which/WDT
came/VBD
from/IN
a/DT
commission/NN
to/TO
write/VB
a/DT
piece/NN
of/IN
indeterminate/JJ
length/NN
Mr./NNP
Glass/NNP
charmingly/RB
,/,
and/CC
tellingly/RB
,/,
confessed/VBD
that/IN
``/``
this/DT
was/VBD
no/DT
problem/NN
for/IN
me/PRP
''/''
)/)
,/,
an/DT
A/NNP
section/,
alternates/NNS
with/IN
a/DT
B/NN
section/NN
several/JJ
times/NNS
before/IN
the/DT
piece/NN
ends/VBZ
unresolved/JJ
./.
Not/RB
only/RB
is/VBZ
the/DT
typical/JJ
Glasswork/NNP
open-ended/JJ
,/,
it/PRP
is/VBZ
also/RB
often/RB
multiple/JJ
in/IN
its/PRP$
context/NN
(/(
s/PRP
``/``
Mad/JJ
Rush/NN
''/''
began/VBD
its/PRP$
life/NN
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the/DT
accompaniment/NN
to/TO
the/DT
Dalai/NNP
Lama/NNP
's/POS
first/JJ
public/JJ
address/NN
in/IN
the/DT
U.S./NNP
,/,
when/WRB
Mr./NNP
Glass/NNP
played/VBD
it/PRP
on/IN
the/DT
organ/NN
at/IN
New/NNP
York/NNP
's/POS
Cathedral/NNP
of/IN
St./NNP
John/NNP
the/DT
Divine/NNP
./.
Later/RB
it/PRP
was/VBD
performed/VBN
on/IN
Radio/NNP
Bremen/NNP
in/IN
Germany/NNP
,/,
and/CC
then/RB
Lucinda/NNP
Childs/NNP
took/VBD
it/PRP
for/IN
one/CD
of/IN
her/PRP$
dance/NN
pieces/NNS
./.
The/DT
point/NN
is/VBZ
that/IN
any/DT
piece/NN
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used/VBN
as/IN
background/NN
music/NN
for/IN
virtually/JJ
anything/NN
./.
The/DT
evening/NN
ended/VBD
with/IN
Mr./NNP
Glass/NNP
's/POS
``/``
Metamorphosis/NN
,/,
''/''
another/DT
multiple/JJ
work/NN
./.
Parts/NNS
1/CD
,/,
2/CD
,/,
and/CC
5/CD
come/VBN
from/IN
the/DT
soundtrack/NN
of/IN
Errol/NNP
Morris/NNP
's/POS
acclaimed/JJ
film/NN
,/,
``/``
The/DT
Thin/JJ
Blue/JJ
Line/NN
,/,
''/''
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the/DT
two/CD
other/JJ
parts/NNS
from/IN
incidental/JJ
music/NN
to/TO
two/CD
separate/JJ
dramatizations/NNS
of/IN
the/DT
Kafka/NNP
story/NN
of/IN
the/DT
same/JJ
name/NN
./.
When/WRB
used/VBN
as/IN
background/NN
in/IN
this/DT
way/NN
,/,
the/DT
music/NN
has/VBZ
an/DT
appropriate/JJ
eeriness/NN
,/,
as/IN
when/WRB
a/DT
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phrase/NN
,/,
a/DT
descending/VBG
minor/JJ
third/NN
,/,
accompanies/VBZ
the/DT
seemingly/RB
endless/JJ
litany/NN
of/IN
reports/NNS
,/,
interviews/NNS
and/CC
confessions/NNS
of/IN
witnesses/NNS
in/IN
the/DT
Morris/NNP
film/NN
./.
Served/VBN
up/IN
as/IN
a/DT
solo/NN
,/,
however/RB
,/,
the/DT
music/NN
lacks/VBZ
the/DT
resonance/NN
provided/VBN
by/IN
a/DT
context/NN
within/IN
another/DT
medium/NN
./.
Admirers/NNS
of/IN
Mr./NNP
Glass/NNP
may/MD
agree/VB
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the/DT
critic/NN
Richard/NNP
Kostelanetz/NNP
's/POS
sense/NN
that/IN
the/DT
1974/CD
``/``
Music/NN
in/IN
Twelve/CD
Parts/NNS
''/''
is/VBZ
as/RB
encyclopedic/JJ
and/CC
weighty/JJ
as/IN
``/``
The/DT
Well-Tempered/JJ
Clavier/NN
./.
''/''
But/CC
while/IN
making/VBG
the/DT
obvious/JJ
point/NN
that/IN
both/DT
composers/NNS
develop/VBP
variations/NNS
from/IN
themes/NNS
,/,
this/DT
comparison/NN
ignores/VBZ
the/DT
intensely/RB
claustrophobic/JJ
nature/NN
of/IN
Mr./NNP
Glass/NNP
's/POS
music/NN
./.
Its/PRP$
supposedly/RB
austere/JJ
minimalism/NN
overlays/VBZ
a/DT
bombast/NN
that/WDT
makes/VBZ
one/CD
yearn/NN
for/IN
the/DT
astringency/NN
of/IN
neoclassical/JJ
Stravinsky/NNP
,/,
the/DT
genuinely/RB
radical/JJ
minimalism/NN
of/IN
Berg/NNP
and/CC
Webern/NNP
,/,
and/CC
what/WP
in/IN
retrospect/NN
even/RB
seems/VBZ
like/IN
concision/NN
in/IN
Mahler/NNP
./.
Mr./NNP
Spiegelman/NNP
is/VBZ
professor/NN
of/IN
English/NNP
at/IN
Southern/NNP
Methodist/NNP
University/NNP
and/CC
editor/NN
of/IN
the/DT
Southwest/NNP
Review/NNP
./.
Honeywell/NNP
Inc./NNP
said/VBD
it/PRP
hopes/VBZ
to/TO
complete/VB
shortly/RB
the/DT
first/JJ
of/IN
two/CD
sales/NNS
of/IN
shares/NNS
in/IN
its/PRP$
Japanese/JJ
joint/JJ
venture/NN
,/,
Yamatake-Honeywell/NNP
,/,
for/IN
about/IN
$/$
280/CD
million/CD
./.
The/DT
company/NN
would/MD
n't/RB
disclose/VB
the/DT
buyer/NN
of/IN
the/DT
initial/JJ
16/CD
%/NN
stake/NN
./.
Proceeds/NNS
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the/DT
sale/NN
,/,
expected/VBN
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be/VB
completed/VBN
next/JJ
week/NN
,/,
would/MD
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used/VBN
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repurchase/VB
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as/IN
10/CD
million/CD
shares/NNS
of/IN
Honeywell/NNP
stock/NN
,/,
the/DT
company/NN
said/VBD
./.
Honeywell/NNP
said/VBD
it/PRP
is/VBZ
negotiating/VBG
the/DT
sale/NN
of/IN
a/DT
second/JJ
stake/NN
in/IN
Yamatake-Honeywell/NNP
,/,
but/CC
indicated/VBD
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hold/VB
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least/JJS
20/CD
%/NN
of/IN
the/DT
joint/JJ
venture/NN
's/POS
stock/NN
long/JJ
term/NN
./.
A/DT
20/CD
%/NN
stake/NN
would/MD
allow/VB
Honeywell/NNP
to/TO
include/VB
Yamatake/NNP
earnings/NNS
in/IN
its/PRP$
results/NNS
./.
Honeywell/NNP
previously/RB
said/VBD
it/PRP
intended/VBD
to/TO
reduce/VB
its/PRP$
holding/NN
in/IN
the/DT
Japanese/JJ
concern/NN
as/IN
part/NN
of/IN
a/DT
restructuring/NN
plan/NN
which/WDT
also/RB
calls/VBZ
for/IN
a/DT
reduction/NN
of/IN
dependence/NN
on/IN
weapons/NNS
sales/NNS
./.
Yesterday/NN
a/DT
spokeswoman/NN
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the/DT
company/NN
was/VBD
``/``
pleased/JJ
with/IN
our/PRP$
progress/NN
''/''
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that/DT
regard/NN
and/CC
``/``
hopes/VBZ
to/TO
provide/VB
additional/JJ
details/NNS
soon/RB
./.
''/''
Honeywell/NNP
said/VBD
its/PRP$
Defense/NN
and/CC
Marine/NN
Systems/NNS
group/NN
incurred/VBD
delays/NNS
in/IN
shipping/VBG
some/DT
undisclosed/JJ
contracts/NNS
during/IN
the/DT
third/JJ
quarter/NN
,/,
resulting/VBG
in/IN
lower/JJR
operating/NN
profit/NN
for/IN
that/DT
business/NN
./.
Overall/RB
,/,
Honeywell/NNP
reported/VBD
earnings/NNS
of/IN
$/$
74.4/CD
million/CD
,/,
or/CC
$/$
1.73/CD
a/DT
share/NN
,/,
for/IN
the/DT
three/CD
months/NNS
ended/VBN
Oct./NNP
1/CD
compared/VBN
with/IN
a/DT
loss/NN
of/IN
$/$
41.4/CD
million/CD
,/,
or/CC
98/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
./.
The/DT
previous/JJ
period/NN
's/POS
results/NNS
included/VBD
a/DT
$/$
108/CD
million/CD
pretax/JJ
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related/VBN
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unrecoverable/JJ
contract/NN
costs/NNS
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a/DT
$/$
12.3/CD
million/CD
pretax/JJ
gain/NN
on/IN
real/JJ
estate/NN
sales/NNS
./.
Sales/NNS
for/IN
the/DT
latest/JJS
quarter/NN
were/VBD
flat/JJ
,/,
at/IN
$/$
1.72/CD
billion/CD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
Honeywell/NNP
reported/VBD
earnings/NNS
of/IN
$/$
212.1/CD
million/CD
,/,
or/CC
$/$
4.92/CD
a/DT
share/NN
,/,
compared/VBN
with/IN
earnings/NNS
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$/$
47.9/CD
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,/,
or/CC
$/$
1.13/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
./.
Sales/NNS
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$/$
5.17/CD
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./.
Once/RB
again/RB
,/,
your/PRP$
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page/NN
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law/NN
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conform/VB
to/TO
your/PRP$
almost/RB
beatific/JJ
misperceptions/NNS
./.
In/IN
an/DT
excursus/NN
of/IN
little/JJ
relevance/NN
to/TO
his/PRP$
central/JJ
point/NN
about/IN
private/JJ
enforcement/NN
suits/NNS
by/IN
environmental/JJ
groups/NNS
,/,
Michael/NNP
S./NNP
Greve/NNP
informs/VBZ
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readers/NNS
,/,
``/``
.../:
the/DT
Clean/NNP
Water/NNP
Act/NNP
is/VBZ
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upon/IN
the/DT
presumption/NN
--/:
the/DT
pretense/NN
,/,
rather/RB
--/:
that/IN
nothing/NN
but/CC
zero/CD
risk/NN
will/MD
do/VB
;/:
it/PRP
establishes/VBZ
a/DT
legal/JJ
standard/NN
of/IN
zero/CD
discharge/NN
''/''
(/(
``/``
Congress's/NNP
Environmental/JJ
Buccaneers/NNS
,/,
''/''
Sept./NNP
18/CD
This/DT
statement/NN
surely/RB
buttresses/VBZ
your/PRP$
editorial/NN
viewpoint/NN
that/IN
environmental/JJ
protection/NN
is/VBZ
generally/RB
silly/JJ
or/CC
excessive/JJ
,/,
but/CC
it/PRP
is/VBZ
simply/RB
wrong/JJ
./.
The/DT
Clean/NNP
Water/NNP
Act/NNP
contains/VBZ
no/DT
``/``
legal/JJ
standard/NN
''/''
of/IN
zero/CD
discharge/NN
./.
It/PRP
requires/VBZ
that/IN
``/``
discharges/NNS
of/IN
pollutants/NNS
''/''
into/IN
the/DT
``/``
waters/NNS
of/IN
the/DT
United/NNP
States/NNPS
''/''
be/VB
authorized/VBN
by/IN
permits/NNS
that/WDT
reflect/VBP
the/DT
effluent/JJ
limitations/NNS
developed/VBN
under/IN
section/NN
301/CD
./.
Whatever/WDT
may/MD
be/VB
the/DT
problems/NNS
with/IN
this/DT
system/NN
,/,
it/PRP
scarcely/RB
reflects/VBZ
``/``
zero/CD
risk/NN
''/''
or/CC
``/``
zero/CD
discharge/NN
./.
''/''
Perhaps/RB
Mr./NNP
Greve/NNP
was/VBD
confused/VBN
by/IN
Congress/NNP
's/POS
meaningless/JJ
statement/NN
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``/``
the/DT
national/JJ
goal/NN
''/''
in/IN
section/NN
101/CD
,/,
which/WDT
indeed/RB
calls/VBZ
for/IN
the/DT
elimination/NN
of/IN
discharges/NNS
--/:
by/IN
1985/CD
,/,
no/DT
less/JJR
./.
This/DT
fatuous/JJ
statement/NN
was/VBD
not/RB
taken/VBN
seriously/RB
when/WRB
enacted/VBN
in/IN
1972/CD
,/,
and/CC
should/MD
not/RB
now/RB
be/VB
confused/VBN
with/IN
the/DT
operative/JJ
provisions/NNS
of/IN
the/DT
statute/NN
./.
Thus/RB
,/,
you/PRP
do/VBP
the/DT
public/NN
a/DT
great/JJ
disservice/NN
when/WRB
Mr./NNP
Greve/NNP
suggests/VBZ
,/,
even/RB
facetiously/RB
,/,
that/IN
the/DT
Clean/NNP
Water/NNP
Act/NNP
prohibits/VBZ
the/DT
preparation/NN
of/IN
a/DT
scotch/NN
and/CC
water/NN
;/:
your/PRP$
tippling/JJ
readers/NNS
may/MD
be/VB
led/VBN
to/TO
believe/VB
that/IN
nothing/NN
but/CC
chance/NN
or/CC
oversight/NN
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them/PRP
,/,
as/IN
they/PRP
cower/VBP
in/IN
the/DT
night/NN
with/IN
their/PRP$
scotch/NN
and/CC
waters/NNS
,/,
from/IN
the/DT
hairyknuckled/JJ
knock/NN
of/IN
the/DT
Sierra/NNP
Club/NNP
at/IN
their/PRP$
doors/NNS
./.
Robert/NNP
J./NNP
McManus/NNP
Washington/NNP
National/NNP
Geographic/NNP
,/,
the/DT
sixth-largest/JJ
U.S./NNP
magazine/NN
,/,
is/VBZ
attracting/VBG
more/JJR
readers/NNS
than/IN
ever/RB
and/CC
offers/VBZ
the/DT
glossy/JJ
,/,
high-toned/JJ
pages/NNS
that/IN
upscale/JJ
advertisers/NNS
love/VBP
./.
So/RB
why/WRB
did/VBD
advertising/NN
pages/NNS
plunge/VBP
by/IN
almost/RB
10/CD
%/NN
and/CC
ad/NN
revenue/NN
by/IN
7.2/CD
%/NN
in/IN
the/DT
first/JJ
half/NN
?/.
To/TO
hear/VB
advertisers/NNS
tell/VB
it/PRP
,/,
the/DT
magazine/NN
just/RB
has/VBZ
n't/RB
kept/VBD
up/RB
with/IN
the/DT
times/NNS
./.
Despite/IN
renewed/VBN
interest/NN
by/IN
the/DT
public/NN
in/IN
such/JJ
topics/NNS
as/IN
the/DT
environment/NN
and/CC
the/DT
Third/NNP
World/NNP
,/,
it/PRP
has/VBZ
n't/RB
been/VBN
able/JJ
to/TO
shake/VB
its/PRP$
reputation/NN
as/IN
a/DT
magazine/NN
boys/NNS
like/VBP
to/TO
flip/VB
through/RB
in/IN
search/NN
of/IN
topless/JJ
tribe/NN
women/NNS
./.
Worse/JJR
,/,
it/PRP
lagged/VBD
behind/IN
competitors/NNS
in/IN
offering/VBG
now-standard/JJ
gimmicks/NNS
,/,
from/IN
regional/JJ
editions/NNS
to/TO
discounts/NNS
for/IN
frequent/JJ
advertisers/NNS
./.
But/CC
now/RB
,/,
the/DT
magazine/NN
is/VBZ
attempting/VBG
to/TO
fight/VB
back/RB
,/,
with/IN
an/DT
ambitious/JJ
plan/NN
including/VBG
a/DT
revamped/VBN
sales/NNS
strategy/NN
and/CC
a/DT
surprisingly/RB
aggressive/JJ
ad/NN
campaign/NN
./.
Advertisers/NNS
do/VBP
n't/RB
think/VB
of/IN
the/DT
magazine/NN
first/RB
,/,
says/VBZ
Joan/NNP
McCraw/NNP
,/,
who/WP
joined/VBD
in/IN
April/NNP
as/IN
national/JJ
advertising/NN
director/NN
./.
``/``
What/WP
we/PRP
want/VBP
to/TO
do/VB
is/VBZ
take/VB
a/DT
more/RBR
aggressive/JJ
stance/NN
./.
People/NNS
did/VBD
n't/RB
believe/VB
we/PRP
were/VBD
in/IN
tune/NN
with/IN
the/DT
marketplace/NN
,/,
and/CC
in/IN
many/JJ
ways/NNS
we/PRP
were/VBD
n't/RB
./.
''/''
The/DT
101-year-old/JJ
magazine/NN
has/VBZ
never/RB
had/VBN
to/TO
woo/VB
advertisers/NNS
with/IN
quite/RB
so/RB
much/JJ
fervor/NN
before/RB
./.
It/PRP
largely/RB
rested/VBD
on/IN
its/PRP$
hard-to-fault/JJ
demographics/NNS
:/:
10.8/CD
million/CD
subscribers/NNS
in/IN
the/DT
first/JJ
half/NN
,/,
up/RB
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10.5/CD
million/CD
a/DT
year/NN
ago/RB
;/:
an/DT
average/JJ
age/NN
of/IN
42/CD
for/IN
readers/NNS
--/:
at/IN
the/DT
height/NN
of/IN
their/PRP$
consuming/NN
years/NNS
;/:
loyalty/NN
to/TO
the/DT
tune/NN
of/IN
an/DT
85/CD
%/NN
average/JJ
subscription/NN
renewal/NN
rate/NN
./.
The/DT
magazine/NN
had/VBD
its/PRP$
best/JJS
year/NN
yet/RB
in/IN
1988/CD
,/,
when/WRB
it/PRP
celebrated/VBD
its/PRP$
centennial/NN
and/CC
racked/VBD
up/RP
a/DT
17/CD
%/NN
gain/NN
in/IN
ad/NN
pages/NNS
,/,
to/TO
283/CD
./.
But/CC
this/DT
year/NN
,/,
when/WRB
the/DT
hullabaloo/NN
surrounding/VBG
its/PRP$
centennial/NN
died/VBD
,/,
so/RB
too/RB
did/VBD
some/DT
advertiser/NN
interest/NN
./.
The/DT
reason/NN
,/,
ad/NN
executives/NNS
say/VBP
,/,
is/VBZ
that/IN
the/DT
entire/JJ
magazine/NN
business/NN
has/VBZ
been/VBN
soft/JJ
--/:
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National/NNP
Geographic/NNP
has/VBZ
some/DT
quirks/NNS
that/WDT
make/VBP
it/PRP
especially/RB
unattractive/JJ
during/IN
a/DT
soft/JJ
market/NN
./.
Perhaps/RB
the/DT
biggest/JJS
of/IN
those/DT
factors/NNS
is/VBZ
its/PRP$
high/JJ
ad/NN
prices/NNS
--/:
$/$
130,000/CD
for/IN
a/DT
four-color/JJ
page/NN
,/,
vs./FW
$/$
47,000/CD
for/IN
the/DT
Smithsonian/NNP
,/,
a/DT
comparable/JJ
publication/NN
with/IN
a/DT
far/RB
smaller/JJR
circulation/NN
./.
When/WRB
ad/NN
dollars/NNS
are/VBP
tight/JJ
,/,
the/DT
high/JJ
page/NN
cost/NN
is/VBZ
a/DT
major/JJ
deterrent/NN
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advertisers/NNS
,/,
who/WP
generally/RB
want/VBP
to/TO
appear/VB
regularly/RB
in/IN
a/DT
publication/NN
or/CC
not/RB
at/IN
all/DT
./.
Even/RB
though/IN
National/NNP
Geographic/NNP
offers/VBZ
far/RB
more/JJR
readers/NNS
than/IN
does/VBZ
a/DT
magazine/NN
like/IN
Smithsonian/NNP
,/,
``/``
the/DT
page/NN
costs/VBZ
you/PRP
an/DT
arm/NN
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a/DT
leg/NN
to/TO
develop/VB
any/DT
frequency/NN
,/,
''/''
says/VBZ
Harry/NNP
Glass/NNP
,/,
New/NNP
York/NNP
media/NNS
manager/NN
for/IN
Bozell/NNP
Inc/NNP
./.
To/TO
combat/VB
that/DT
problem/NN
,/,
National/NNP
Geographic/NNP
,/,
like/IN
other/JJ
magazines/NNS
,/,
began/VBD
offering/VBG
regional/JJ
editions/NNS
allowing/VBG
advertisers/NNS
to/TO
appear/VB
in/IN
only/RB
a/DT
portion/NN
of/IN
its/PRP$
magazines/NNS
--/:
for/IN
example/NN
,/,
ads/NNS
can/MD
run/VB
only/RB
in/IN
the/DT
magazines/NNS
sent/VBN
to/TO
subscribers/NNS
in/IN
the/DT
largest/JJS
25/CD
markets/NNS
./.
But/CC
the/DT
magazine/NN
was/VBD
slower/JJR
than/IN
its/PRP$
competitors/NNS
to/TO
come/VB
up/RB
with/IN
its/PRP$
regional/JJ
editions/NNS
,/,
and/CC
until/IN
last/JJ
year/NN
offered/VBD
fewer/JJR
of/IN
them/PRP
than/IN
did/VBD
competitors/NNS
./.
Time/NNP
magazine/NN
,/,
for/IN
example/NN
,/,
has/VBZ
more/JJR
than/IN
100/CD
separate/JJ
editions/NNS
going/VBG
to/TO
different/JJ
regions/NNS
,/,
top/JJ
management/NN
,/,
and/CC
other/JJ
groups/NNS
./.
Another/DT
sticking/JJ
point/NN
for/IN
advertisers/NNS
was/VBD
National/NNP
Geographic/NNP
's/POS
tradition/NN
of/IN
lumping/VBG
its/PRP$
ads/NNS
together/RB
,/,
usually/RB
at/IN
the/DT
beginning/NN
or/CC
end/NN
of/IN
the/DT
magazine/NN
,/,
rather/RB
than/IN
spreading/VBG
ads/NNS
out/RP
among/IN
its/PRP$
articles/NNS
,/,
as/IN
most/JJS
magazines/NNS
do/VBP
./.
And/CC
National/NNP
Geographic/NNP
's/POS
smaller-than-average/JJ
size/NN
means/VBZ
extra/JJ
production/NN
costs/NNS
for/IN
advertisers/NNS
./.
But/CC
Ms./NNP
McCraw/NNP
says/VBZ
the/DT
magazine/NN
is/VBZ
fighting/VBG
back/RB
./.
It/PRP
now/RB
offers/VBZ
30/CD
regional/JJ
editions/NNS
,/,
it/PRP
very/RB
recently/RB
began/VBD
running/VBG
ads/NNS
adjacent/JJ
to/TO
articles/NNS
,/,
and/CC
it/PRP
has/VBZ
been/VBN
beefing/VBG
up/RP
its/PRP$
sales/NNS
force/NN
./.
And/CC
it/PRP
just/RB
launched/VBD
a/DT
promotional/JJ
campaign/NN
to/TO
tell/VB
chief/JJ
executives/NNS
,/,
marketing/NN
directors/NNS
,/,
and/CC
media/NNS
executives/NNS
just/RB
that/DT
./.
The/DT
centerpiece/NN
of/IN
the/DT
promotion/NN
is/VBZ
its/PRP$
new/JJ
ad/NN
campaign/NN
,/,
into/IN
which/WDT
the/DT
magazine/NN
will/MD
pour/VB
about/IN
$/$
500,000/CD
,/,
mostly/RB
in/IN
the/DT
next/JJ
few/JJ
weeks/NNS
./.
The/DT
campaign/NN
,/,
created/VBN
by/IN
Omnicom/NNP
Group/NNP
's/POS
DDB/NNP
Needham/NNP
agency/NN
,/,
takes/VBZ
advantage/NN
of/IN
the/DT
eye-catching/JJ
photography/NN
that/IN
National/NNP
Geographic/NNP
is/VBZ
known/VBN
for/IN
./.
In/IN
one/CD
ad/NN
,/,
a/DT
photo/NN
of/IN
the/DT
interior/NN
of/IN
the/DT
Sainte-Chapelle/NNP
in/IN
Paris/NNP
is/VBZ
paired/VBN
with/IN
the/DT
headline/NN
,/,
``/``
The/DT
only/JJ
book/NN
more/RBR
respected/JJ
than/IN
ours/JJ
does/VBZ
n't/RB
accept/VB
advertising/NN
./.
''/''
Another/DT
ad/NN
pictures/VBZ
a/DT
tree/NN
ant/NN
,/,
magnified/VBN
80/CD
times/NNS
,/,
with/IN
the/DT
headline/NN
,/,
``/``
For/IN
impact/NN
far/RB
beyond/IN
your/PRP$
size/NN
consider/VB
our/PRP$
regional/JJ
editions/NNS
./.
''/''
Ms./NNP
McCraw/NNP
says/VBZ
she/PRP
wants/VBZ
the/DT
campaign/NN
to/TO
help/VB
attract/VB
advertisers/NNS
in/IN
10/CD
categories/NNS
,/,
including/VBG
corporate/JJ
,/,
financial/JJ
services/NNS
,/,
consumer/NN
electronics/NNS
,/,
insurance/NN
and/CC
food/NN
./.
Her/PRP$
goal/NN
:/:
to/TO
top/VB
300/CD
ad/NN
pages/NNS
in/IN
1990/CD
,/,
up/RB
from/IN
about/IN
274/CD
this/DT
year/NN
./.
Whether/IN
she/PRP
can/MD
meet/VB
that/DT
ambitious/JJ
goal/NN
is/VBZ
still/RB
far/RB
from/IN
certain/JJ
./.
``/``
The/DT
ad/NN
campaign/NN
is/VBZ
meant/VBN
to/TO
contemporize/VB
the/DT
thought/NN
of/IN
National/NNP
Geographic/NNP
,/,
''/''
she/PRP
says/VBZ
./.
``/``
We/PRP
want/VBP
it/PRP
to/TO
be/VB
a/DT
'90s/NNS
kind/NN
of/IN
image/NN
./.
''/''
WCRS/NNP
Plans/VBZ
Ad-Unit/NN
Sale/NN
WCRS/NNP
Group/NNP
hopes/VBZ
to/TO
announce/VB
,/,
perhaps/RB
today/NN
,/,
an/DT
agreement/NN
to/TO
sell/VB
the/DT
majority/NN
of/IN
its/PRP$
ad/NN
unit/NN
to/TO
Paris-based/JJ
Eurocom/NNP
,/,
a/DT
European/JJ
ad/NN
executive/NN
said/VBD
./.
WCRS/NNP
has/VBZ
been/VBN
in/IN
discussions/NNS
with/IN
Eurocom/NNP
for/IN
several/JJ
months/NNS
./.
However/RB
,/,
when/WRB
negotiations/NNS
bogged/VBD
down/RB
recently/RB
,/,
WCRS/NNP
's/POS
chief/JJ
executive/NN
,/,
Peter/NNP
Scott/NNP
,/,
met/VBD
in/IN
Paris/NNP
with/IN
another/DT
French/JJ
firm/NN
,/,
Boulet/NNP
Dru/NNP
Dupuy/NNP
Petit/NNP
,/,
or/CC
BDDP/NNP
./.
According/VBG
to/TO
the/DT
executive/NN
,/,
BDDP/NNP
's/POS
involvement/NN
prompted/VBD
renewed/VBN
vigor/NN
in/IN
the/DT
WCRS-Eurocom/JJ
talks/NNS
and/CC
the/DT
two/CD
agencies/NNS
were/VBD
hoping/VBG
to/TO
hammer/VB
out/RP
details/NNS
by/IN
today/NN
./.
Executives/NNS
of/IN
the/DT
two/CD
agencies/NNS
could/MD
n't/RB
be/VB
reached/VBN
last/JJ
night/NN
./.
Ad/NN
Notes/NNS
.../:
./.
NEW/JJ
ACCOUNT/NN
:/:
Procter/NNP
&/CC
Gamble/NNP
Co./NNP
,/,
Cincinnati/NNP
,/,
awarded/VBD
the/DT
ad/NN
accounts/NNS
for/IN
its/PRP$
line/NN
of/IN
Professional/NNP
Crisco/NNP
vegetable/NN
shortening/NN
and/CC
oil/NN
products/NNS
to/TO
Northlich/NNP
,/,
Stolley/NNP
,/,
LaWarre/NNP
,/,
Cincinnati/NNP
./.
Billings/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Professional/JJ
Crisco/NNP
products/NNS
are/VBP
specially/RB
made/VBN
for/IN
the/DT
foodservice/NN
industry/NN
./.
WHO/WP
'S/VBZ
NEWS/NN
:/:
Stephen/NNP
Novick/NNP
,/,
49/CD
,/,
was/VBD
named/VBN
executive/NN
vice/NN
president/NN
,/,
deputy/NN
creative/JJ
director/NN
at/IN
Grey/NNP
Advertising/NNP
,/,
New/NNP
York/NNP
./.
He/PRP
was/VBD
executive/NN
vice/NN
president/NN
,/,
director/NN
of/IN
broadcast/NN
production/NN
./.
The/DT
Commodity/NNP
Futures/NNPS
Trading/NNP
Commission/NNP
plans/VBZ
to/TO
restrict/VB
dual/JJ
trading/NN
on/IN
commodity/NN
exchanges/NNS
,/,
a/DT
move/NN
almost/RB
certain/JJ
to/TO
infuriate/VB
exchange/NN
officials/NNS
and/CC
traders/NNS
./.
The/DT
CFTC/NNP
said/VBD
it/PRP
will/MD
propose/VB
the/DT
restrictions/NNS
after/IN
the/DT
release/NN
of/IN
a/DT
study/NN
that/WDT
shows/VBZ
little/JJ
economic/JJ
benefit/NN
resulting/VBG
from/IN
dual/JJ
trading/NN
and/CC
cites/VBZ
``/``
problems/NNS
''/''
associated/JJ
with/IN
the/DT
practice/NN
./.
Dual/JJ
trading/NN
gives/VBZ
an/DT
exchange/NN
trader/NN
the/DT
right/NN
to/TO
trade/VB
both/DT
for/IN
his/PRP$
own/JJ
account/NN
and/CC
for/IN
customers/NNS
./.
The/DT
issue/NN
exploded/VBD
this/DT
year/NN
after/IN
a/DT
Federal/NNP
Bureau/NNP
of/IN
Investigation/NNP
operation/NN
led/VBD
to/TO
charges/NNS
of/IN
widespread/JJ
trading/NN
abuses/NNS
at/IN
the/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
and/CC
Chicago/NNP
Mercantile/NNP
Exchange/NNP
./.
While/IN
not/RB
specifically/RB
mentioned/VBN
in/IN
the/DT
FBI/NNP
charges/NNS
,/,
dual/JJ
trading/NN
became/VBD
a/DT
focus/NN
of/IN
attempts/NNS
to/TO
tighten/VB
industry/NN
regulations/NNS
./.
Critics/NNS
contend/VBP
that/IN
traders/NNS
were/VBD
putting/VBG
buying/NN
or/CC
selling/NN
for/IN
their/PRP$
own/JJ
accounts/NNS
ahead/RB
of/IN
other/JJ
traders/NNS
'/POS
customer/NN
orders/NNS
./.
Traders/NNS
are/VBP
likely/JJ
to/TO
oppose/VB
such/JJ
restrictions/NNS
because/IN
dual/JJ
trading/NN
provides/VBZ
a/DT
way/NN
to/TO
make/VB
money/NN
in/IN
slower/JJR
markets/NNS
where/WRB
there/EX
is/VBZ
a/DT
shortage/NN
of/IN
customer/NN
orders/NNS
./.
The/DT
exchanges/NNS
contend/VBP
that/IN
dual/JJ
trading/NN
improves/VBZ
liquidity/NN
in/IN
the/DT
markets/NNS
because/IN
traders/NNS
can/MD
buy/VB
or/CC
sell/VB
even/RB
when/WRB
they/PRP
do/VBP
n't/RB
have/VB
a/DT
customer/NN
order/NN
in/IN
hand/NN
./.
The/DT
exchanges/NNS
say/VBP
liquidity/NN
becomes/VBZ
a/DT
severe/JJ
problem/NN
for/IN
thinly/RB
traded/JJ
contracts/NNS
such/JJ
as/IN
those/DT
with/IN
a/DT
long/JJ
time/NN
remaining/VBG
before/IN
expiration/NN
./.
The/DT
CFTC/NNP
may/MD
take/VB
those/DT
arguments/NNS
into/IN
account/NN
by/IN
allowing/VBG
exceptions/NNS
to/TO
its/PRP$
restrictions/NNS
./.
The/DT
agency/NN
did/VBD
n't/RB
cite/VB
specific/JJ
situations/NNS
where/WRB
dual/JJ
trading/NN
might/MD
be/VB
allowed/VBN
,/,
but/CC
smaller/JJR
exchanges/NNS
or/CC
contracts/NNS
that/WDT
need/VBP
additional/JJ
liquidity/NN
are/VBP
expected/VBN
to/TO
be/VB
among/IN
them/PRP
./.
Wendy/NNP
Gramm/NNP
,/,
the/DT
agency/NN
's/POS
chairman/NN
,/,
told/VBD
the/DT
Senate/NNP
Agriculture/NNP
Committee/NNP
that/IN
she/PRP
expects/VBZ
the/DT
study/NN
to/TO
be/VB
released/VBN
within/IN
two/CD
weeks/NNS
and/CC
the/DT
rule/NN
changes/NNS
to/TO
be/VB
completed/VBN
by/IN
Thanksgiving/NNP
./.
The/DT
study/NN
,/,
by/IN
the/DT
CFTC/NNP
's/POS
division/NN
of/IN
economic/JJ
analysis/NN
,/,
shows/VBZ
that/IN
``/``
a/DT
trade/NN
is/VBZ
a/DT
trade/NN
,/,
''/''
a/DT
member/NN
of/IN
the/DT
study/NN
team/NN
said/VBD
./.
Whether/IN
a/DT
trade/NN
is/VBZ
done/VBN
on/IN
a/DT
dual/JJ
or/CC
non-dual/JJ
basis/NN
,/,
the/DT
member/NN
said/VBD
,/,
``/``
does/VBZ
n't/RB
seem/VB
to/TO
have/VB
much/JJ
economic/JJ
impact/NN
./.
''/''
Currently/RB
,/,
most/JJS
traders/NNS
on/IN
commodity/NN
exchanges/NNS
specialize/VBP
in/IN
trading/NN
either/CC
for/IN
customer/NN
accounts/NNS
,/,
which/WDT
makes/VBZ
them/PRP
brokers/NNS
,/,
or/CC
for/IN
their/PRP$
own/JJ
accounts/NNS
as/IN
socalled/JJ
locals/NNS
./.
``/``
The/DT
tests/NNS
indicate/VBP
that/IN
dual/JJ
and/CC
non-dual/JJ
traders/NNS
are/VBP
similar/JJ
in/IN
terms/NNS
of/IN
the/DT
trade/NN
executions/NNS
and/CC
liquidity/NN
they/PRP
provide/VBP
to/TO
the/DT
market/NN
,/,
''/''
Mrs./NNP
Gramm/NNP
told/VBD
the/DT
Senate/NNP
panel/NN
./.
Members/NNS
of/IN
Congress/NNP
have/VBP
proposed/VBN
restricting/VBG
dual/JJ
trading/NN
in/IN
bills/NNS
to/TO
reauthorize/VB
CFTC/NNP
operations/NNS
./.
The/DT
House/NNP
's/POS
bill/NN
would/MD
prohibit/VB
dual/JJ
trading/NN
in/IN
markets/NNS
with/IN
daily/JJ
average/JJ
volume/NN
of/IN
7,000/CD
contracts/NNS
or/CC
more/JJR
,/,
comprising/VBG
those/DT
considered/VBN
too/RB
difficult/JJ
to/TO
track/VB
without/IN
a/DT
sophisticated/JJ
computer/NN
system/NN
./.
The/DT
Senate/NNP
bill/NN
would/MD
force/VB
the/DT
CFTC/NNP
to/TO
suspend/VB
dual/JJ
trading/NN
if/IN
an/DT
exchange/NN
ca/MD
n't/RB
show/VB
that/DT
its/PRP$
oversight/NN
system/NN
can/MD
detect/VB
dual-trading/NN

abuses/NNS
./.
So/RB
far/RB
,/,
one/CD
test/NN
of/IN
restricting/VBG
dual/JJ
trading/NN
has/VBZ
worked/VBN
well/RB
./.
The/DT
Chicago/NNP
Merc/NNP
banned/VBD
dual/JJ
trading/NN
in/IN
its/PRP$
Standard/NNP
&/CC
Poor/NNP
's/POS
500-stock/JJ
index/NN
futures/NNS
pit/NN
in/IN
1987/CD
./.
Under/IN
the/DT
rules/NNS
,/,
traders/NNS
decide/VBP
before/IN
a/DT
session/NN
begins/VBZ
whether/IN
they/PRP
will/MD
trade/VB
for/IN
their/PRP$
own/JJ
account/NN
or/CC
for/IN
customers/NNS
./.
Traders/NNS
who/WP
stand/VBP
on/IN
the/DT
pit/NN
's/POS
top/NN
step/NN
,/,
where/WRB
most/JJS
customer/NN
orders/NNS
are/VBP
executed/VBN
,/,
ca/MD
n't/RB
trade/VB
for/IN
themselves/PRP
./.
A/DT
Merc/NNP
spokesman/NN
said/VBD
the/DT
plan/NN
has/VBZ
n't/RB
made/VBD
much/JJ
difference/NN
in/IN
liquidity/NN
in/IN
the/DT
pit/NN
./.
``/``
It/PRP
's/VBZ
too/RB
soon/RB
to/TO
tell/VB
.../:
but/CC
people/NNS
do/VBP
n't/RB
seem/VB
to/TO
be/VB
unhappy/JJ
with/IN
it/PRP
,/,
''/''
he/PRP
said/VBD
./.
He/PRP
said/VBD
he/PRP
would/MD
n't/RB
comment/VB
on/IN
the/DT
CFTC/NNP
plan/NN
until/IN
the/DT
exchange/NN
has/VBZ
seen/VBN
the/DT
full/JJ
proposal/NN
./.
But/CC
at/IN
a/DT
meeting/NN
last/JJ
week/NN
,/,
Tom/NNP
Donovan/NNP
,/,
the/DT
Board/NNP
of/IN
Trade/NNP
's/POS
president/NN
,/,
told/VBD
commodity/NN
lawyers/NNS
:/:
``/``
Dual/JJ
trading/NN
is/VBZ
definitely/RB
worth/JJ
saving/NN
./.
It/PRP
adds/VBZ
something/NN
to/TO
the/DT
market/NN
./.
''/''
Japanese/JJ
Firms/NNS
Push/VBP
Posh/JJ
Car/NN
Showrooms/NNS
JAPANESE/JJ
luxury-car/NN
makers/NNS
are/VBP
trying/VBG
to/TO
set/VB
strict/JJ
design/NN
standards/NNS
for/IN
their/PRP$
dealerships/NNS
./.
But/CC
some/DT
dealers/NNS
are/VBP
negotiating/VBG
looser/JJR
terms/NNS
,/,
while/IN
others/NNS
decline/VBP
to/TO
deal/VB
at/IN
all/DT
./.
Nissan/NNP
Motor/NNP
Co./NNP
's/POS
Infiniti/NNP
division/NN
likes/VBZ
to/TO
insist/VB
that/IN
every/DT
dealer/NN
construct/VB
and/CC
furnish/VB
a/DT
building/NN
in/IN
a/DT
Japanese/JJ
style/NN
./.
Specifications/NNS
include/VBP
a/DT
polished/JJ
bronze/NN
sculpture/NN
at/IN
the/DT
center/NN
of/IN
each/DT
showroom/NN
and/CC
a/DT
tile/NN
bridge/NN
spanning/VBG
a/DT
stream/NN
that/WDT
flows/VBZ
into/IN
the/DT
building/NN
from/IN
outside/RB
./.
``/``
Infiniti/NNP
has/VBZ
it/PRP
down/RB
to/TO
the/DT
ashtrays/NNS
,/,
''/''
says/VBZ
Jay/NNP
Ferron/NNP
,/,
a/DT
partner/NN
at/IN
J.D./NNP
Power/NNP
&/CC
Associates/NNPS
,/,
an/DT
auto/NN
research/NN
firm/NN
./.
Toyota/NNP
Motor/NNP
Corp./NNP
's/POS
Lexus/NNP
division/NN
also/RB
provides/VBZ
specifications/NNS
./.
But/CC
only/JJ
two-thirds/NNS
of/IN
Lexus/NNP
dealers/NNS
are/VBP
constructing/VBG
new/JJ
buildings/NNS
according/VBG
to/TO
the/DT
Lexus/NNP
specs/NNS
./.
Some/DT
are/VBP
even/RB
coming/VBG
up/RB
with/IN
their/PRP$
own/JJ
novel/NN
designs/NNS
./.
In/IN
Louisville/NNP
,/,
Ky./NNP
,/,
for/IN
example/NN
,/,
David/NNP
Peterson/NNP
has/VBZ
built/VBN
a/DT
Lexus/NNP
dealership/NN
with/IN
the/DT
showroom/NN
on/IN
the/DT
second/JJ
floor/NN
./.
Yet/CC
some/DT
dealers/NNS
have/VBP
turned/VBN

down/RP
Infiniti/NNP
or/CC
Lexus/NNP
franchises/NNS
because/IN
they/PRP
were/VBD
unwilling/JJ
or/CC
unable/JJ
to/TO
meet/VB
the/DT
design/NN
requirements/NNS
./.
Lee/NNP
Seidman/NNP
of/IN
Cleveland/NNP
says/VBZ
Infiniti/NNP
``/``
was/VBD
a/DT
bear/NN
on/IN
interiors/NNS
''/''
but/CC
at/IN
least/JJS
let/VB
him/PRP
retrofit/VB
an/DT
existing/VBG
building/NN
--/:
without/IN
the/DT
stream/NN
./.
Mr./NNP
Seidman/NNP
says/VBZ
he/PRP
turned/VBD
down/RP
a/DT
Lexus/NNP
franchise/NN
in/IN
part/NN
because/IN
``/``
the/DT
building/NN
was/VBD
gorgeous/JJ
but/CC
very/RB
expensive/JJ
./.
''/''
To/TO
head/VB
off/RP
arguments/NNS
,/,
Infiniti/NNP
offers/VBZ
dealers/NNS
cash/NN
bonuses/NNS
and/CC
low-interest/JJ
construction/NN
loans/NNS
./.
Dictation/NN
Device/NN
's/POS
Saga/NN
Plays/VBZ
Back/RB
a/DT
Lesson/NN
PRODUCTS/NNS
DON'T/VB
have/VBP
to/TO
be/VB
first/JJ
to/TO
be/VB
winners/NNS
./.
That/DT
's/VBZ
the/DT
lesson/NN
offered/VBN
through/IN
one/CD
case/NN
study/NN
featured/VBN
in/IN
a/DT
design/NN
exhibit/NN
./.
Dictaphone/NNP
Corp./NNP
was/VBD
caught/VBN
off/IN
guard/NN
in/IN
1974/CD
when/WRB
its/PRP$
main/JJ
competitor/NN
,/,
Lanier/NNP
Office/NNP
Products/NNPS
of/IN
Japan/NNP
,/,
introduced/VBD
a/DT
microcassette/NN
dictation/NN
recorder/NN
half/PDT
the/DT
size/NN
of/IN
standard/JJ
cassette/NN
devices/NNS
./.
Blocked/VBN
by/IN
patent/NN
protection/NN
from/IN
following/VBG
suit/RB
,/,
Dictaphone/NNP
decided/VBD
to/TO
go/VB
a/DT
step/NN
further/RBR
and/CC
cut/VB
the/DT
cassette/NN
in/IN
half/NN
again/RB
--/:
down/IN
to/TO
the/DT
length/NN
of/IN
a/DT
paperclip/NN
./.
By/IN
1979/CD
,/,
designers/NNS
and/CC
engineers/NNS
at/IN
Dictaphone/NNP
,/,
a/DT
Pitney/NNP
Bowes/NNP
subsidiary/NN
,/,
had/VBD
produced/VBN
a/DT
working/JJ
model/NN
of/IN
a/DT
``/``
picocassette/NN
''/''
recorder/NN
./.
By/IN
1982/CD
,/,
however/RB
,/,
the/DT
patent/NN
status/NN
of/IN
the/DT
Lanier/NNP
microcassette/NN
had/VBD
changed/VBN
,/,
permitting/VBG
Dictaphone/NN
to/TO
develop/VB
its/PRP$
own/JJ
competitive/JJ
micro/JJ
system/NN
,/,
which/WDT
it/PRP
did/VBD
./.
Marketing/NN
and/CC
sales/NNS
departments/NNS
then/RB
urged/VBD
abandonment/NN
of/IN
the/DT
pico/NN
project/NN
./.
But/CC
others/NNS
said/VBD
pico/NN
should/MD
proceed/VB
./.
Both/DT
were/VBD
right/JJ
./.
Dictaphone/NNP
went/VBD
ahead/RB
and/CC
introduced/VBD
the/DT
pico/NN
in/IN
1985/CD
,/,
but/CC
it/PRP
has/VBZ
n't/RB
sold/VBN
well/RB
./.
To/TO
date/NN
,/,
says/VBZ
Emil/NNP
Jachmann/NNP
,/,
a/DT
Dictaphone/NNP
vice/NN
president/NN
,/,
it/PRP
has/VBZ
``/``
broken/VBN
even/RB
or/CC
shown/VBN
a/DT
small/JJ
loss/NN
./.
''/''
Nevertheless/RB
,/,
the/DT
device/NN
has/VBZ
been/VBN
successful/JJ
in/IN
other/JJ
ways/NNS
./.
It/PRP
helped/VBD
Dictaphone/NNP
attract/VB
better/JJR
engineers/NNS
,/,
and/CC
it/PRP
provided/VBD
new/JJ
technology/NN
for/IN
other/JJ
company/NN
products/NNS
./.
The/DT
picocassette/NN
recorder/NN
also/RB
helped/VBD
transform/VB
the/DT
company/NN
's/POS
reputation/NN
from/IN
follower/NN
to/TO
leading-edge/JJ
innovator/NN
./.
``/``
It/PRP
gave/VBD
me/PRP
great/JJ
pride/NN
to/TO
see/VB
the/DT
inventor/NN
of/IN
the/DT
microcassette/NN
in/IN
Japan/NNP
look/VB
at/IN
the/DT
pico/NN
and/CC
shake/VB
his/PRP$
head/NN
and/CC
say/VB
`/``
unbelievable/JJ
,/,
'/''
''/''
says/VBZ
Mr./NNP
Jachmann/NNP
./.
Dictaphone/NNP
's/POS
picocassette/NN
recorder/NN
is/VBZ
one/CD
of/IN
13/CD
case/NN
studies/NNS
in/IN
the/DT
TRIAD/NNP
Design/NNP
Project/NNP
,/,
sponsored/VBN
by/IN
the/DT
Design/NNP
Management/NNP
Institute/NNP
of/IN
Boston/NNP
and/CC
Harvard/NNP
Business/NNP
School/NNP
./.
The/DT
studies/NNS
are/VBP
on/IN
exhibit/NN
at/IN
Harvard/NNP
this/DT
month/NN
and/CC
will/MD
travel/VB
to/TO
Chicago/NNP
's/POS
Institute/NNP
of/IN
Design/NNP
and/CC
the/DT
University/NNP
of/IN
California/NNP
at/IN
Berkeley/NN
./.
A/DT
Rake/NN
's/POS
Progress/NN
Means/VBZ
Branching/NNP
Out/RB
ONE/CD
DAY/NNP
Carl/NNP
Barrett/NNP
of/IN
Mobile/NNP
,/,
Ala./NNP
,/,
was/VBD
raking/VBG
some/DT
sycamore/NN
leaves/NNS
,/,
but/CC
the/DT
rake/NN
kept/VBD
riding/VBG
up/IN
over/IN
the/DT
piles/NN
./.
The/DT
harder/RBR
he/PRP
tried/VBD
to/TO
push/VB
them/PRP
into/IN
large/JJ
piles/NNS
,/,
the/DT
closer/RBR
he/PRP
came/VBD
to/TO
breaking/VBG
the/DT
rake/NN
and/CC
straining/VBG
his/PRP$
back/NN
./.
So/RB
Mr./NNP
Barrett/NNP
,/,
then/RB
vice/NN
president/NN
of/IN
the/DT
Alabama/NNP
Steamship/NNP
Association/NNP
,/,
took/VBD
a/DT
steel-toothed/JJ
garden/NN
rake/NN
and/CC
taped/VBD
it/PRP
to/TO
the/DT
underside/NN
of/IN
a/DT
leaf/NN
rake/NN
about/IN
nine/CD
inches/NNS
up/RB
./.
His/PRP$
crude/JJ
device/NN
worked/VBD
:/:
The/DT
lower/JJR
teeth/NNS
gathered/VBD
the/DT
leaves/NNS
into/IN
a/DT
pile/NN
,/,
while/IN
the/DT
higher/JJR
,/,
harder/JJR
teeth/NNS
moved/VBD
the/DT
top/NN
of/IN
the/DT
pile/NN
./.
Now/RB
incorporated/JJ
into/IN
a/DT
polypropylene/NN
rake/NN
,/,
the/DT
four-inch/JJ
prongs/NNS
,/,
or/CC
``/``
wonderbars/NNS
,/,
''/''
also/RB
are/VBP
supposed/VBN
to/TO
aid/VB
in/IN
picking/VBG
up/RP
leaves/NNS
./.
One/CD
customer/NN
,/,
Donald/NNP
Blaggs/NNP
of/IN
Mobile/NNP
,/,
says/VBZ
the/DT
Barrett/NNP
Rake/NN
allowed/VBD
him/PRP
to/TO
do/VB
his/PRP$
lawn/NN
in/IN
2/CD
1\/2/CD
hours/NNS
,/,
two/CD
hours/NNS
less/JJR
than/IN
usual/JJ
./.
But/CC
other/JJ
rake/NN
makers/NNS
have/VBP
their/PRP$
doubts/NNS
./.
Richard/NNP
Mason/NNP
,/,
president/NN
of/IN
Ames/NNP
Co./NNP
in/IN
Parkersburg/NNP
,/,
W./NNP
Va./NNP
,/,
says/VBZ
the/DT
Barrett/NNP
rake/NN
``/``
makes/VBZ
sense/NN
,/,
''/''
but/CC
it/PRP
would/MD
be/VB
``/``
tough/JJ
''/''
to/TO
explain/VB
to/TO
consumers/NNS
./.
John/NNP
Stoner/NNP
,/,
marketing/NN
director/NN
for/IN
True/NNP
Temper/NNP
Corp./NNP
,/,
a/DT
subsidiary/NN
of/IN
Black/NNP
&/CC
Decker/NNP
,/,
says/VBZ
people/NNS
do/VBP
n't/RB
want/VB
to/TO
move/VB
a/DT
leaf/NN
pile/NN
./.
``/``
They/PRP
either/RB
pick/VBP
it/PRP
up/RP
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
or/CC
they/PRP
start/VBP
pulling/VBG
from/IN
a/DT
fresh/JJ
direction/NN
./.
''/''
Odds/NNS
and/CC
Ends/NNS
NO/DT
MORE/RB

STUBBED/VBN
toes/NNS
or/CC
bruised/VBN
shins/NNS
,/,
promises/VBZ
Geste/NNP
Corp./NNP
of/IN
Goshen/NNP
,/,
Ind./NNP
,/,
the/DT
designer/NN
of/IN
a/DT
bed/NN
support/NN
to/TO
replace/VB
traditional/JJ
frames/NNS
./.
Four/CD
tubular/JJ
steel/NN
``/``
Bedfellows/NNS
,/,
''/''
each/DT
roughly/RB
in/IN
the/DT
shape/NN
of/IN
a/DT
``/``
W/NNP
,/,
''/''
are/VBP
attached/VBN
to/TO
the/DT
bottom/NN
of/IN
the/DT
box/NN
spring/NN
in/IN
a/DT
recessed/VBN
position/NN
.../:
./.
Nearly/RB
half/NN
of/IN
U.S./NNP
consumers/NNS
say/VBP
they/PRP
'll/MD
pay/VB
up/RB
to/TO
5/CD
%/NN
more/JJR
for/IN
packaging/NN
that/DT
can/MD
be/VB
recycled/VBN
or/CC
is/VBZ
biodegradable/JJ
,/,
according/VBG
to/TO
a/DT
survey/NN
commissioned/VBN
by/IN
the/DT
Michael/NNP
Peters/NNP
Group/NNP
,/,
a/DT
design/NN
consultant/NN
./.
The/DT
Pentagon/NNP
is/VBZ
a/DT
haunted/JJ
house/NN
./.
Living/VBG
there/RB
for/IN
six/CD
years/NNS
was/VBD
really/RB
scary/JJ
./.
The/DT
ghosts/NNS
of/IN
the/DT
past/NN
are/VBP
everywhere/RB
:/:
They/PRP
are/VBP
kept/VBN
at/IN
bay/NN
only/RB
by/IN
feeding/VBG
them/PRP
vast/JJ
quantities/NNS
of/IN
our/PRP$
defense/NN
budget/NN
./.
Some/DT
can/MD
be/VB
bought/VBN
off/RB
relatively/RB
cheaply/RB
./.
During/IN
the/DT
Korean/NNP
War/NNP
,/,
Gen./NNP
Douglas/NNP
MacArthur/NNP
demanded/VBD
and/CC
got/VBD
,/,
in/IN
addition/NN
to/TO
his/PRP$
U.N./NNP
command/NN
in/IN
Korea/NNP
,/,
his/PRP$
own/JJ
naval/JJ
command/NN
in/IN
Japan/NNP
,/,
NavforJapan/NNP
./.
Those/DT
obsolete/JJ
operations/NNS
cost/VBP
less/JJR
than/IN
$/$
2/CD
billion/CD
a/DT
year/NN
,/,
and/CC
keep/VBP
Mac/NNP
's/POS
ghost/NN
quiet/JJ
./.
That/DT
's/VBZ
about/IN
all/DT
it/PRP
costs/VBZ
to/TO
appease/VB
Adm./NNP
Erich/NNP
Raeder/NNP
's/POS
ghost/NN
./.
In/IN
1941/CD
,/,
Raeder/NNP
and/CC
the/DT
German/JJ
navy/NN
threatened/VBD
to/TO
attack/VB
the/DT
Panama/NNP
Canal/NNP
,/,
so/RB
we/PRP
created/VBD
the/DT
Southern/NNP
Command/NNP
in/IN
Panama/NNP
./.
The/DT
Southern/NNP
Command/NNP
has/VBZ
grown/VBN
even/RB
bigger/RBR
since/IN
the/DT
war/NN
because/IN
Raeder/NNP
's/POS
ghost/NN
sometimes/RB
runs/VBZ
through/IN
the/DT
E/NN
ring/NN
dressed/VBN
like/IN
Gen./NNP
Noriega/NNP
./.
The/DT
Command/NNP
's/POS
huge/JJ
bureaucracy/NN
is/VBZ
needed/VBN
to/TO
analyze/VB
whether/IN
leaders/NNS
of/IN
coups/NNS
against/IN
Gen./NNP
Noriega/NNP
meet/VBP
the/DT
War/NNP
Powers/NNP
Act/NNP
's/POS
six/CD
points/NNS
,/,
Cap/NNP
Weinberger/NNP
's/POS
seven/CD
points/NNS
,/,
the/DT
Intelligence/NNP
Committee/NNP
's/POS
32/CD
points/NNS
and/CC
Woodrow/NNP
Wilson/NNP
's/POS
14/CD
points/NNS
necessary/JJ
to/TO
justify/VB
U.S./NNP
support/NN
./.
So/IN
far/RB
no/DT
one/NN
has/VBZ
./.
The/DT
ghost/NN
of/IN
the/DT
Soviet/JJ
brigade/NN
discovered/VBD
in/IN
Cuba/NNP
back/RB
in/IN
the/DT
'70s/NNS
costs/VBZ
just/RB
a/DT
few/JJ
hundred/CD
million/CD
:/:
the/DT
price/NN
of/IN
the/DT
Caribbean/NNP
Command/NNP
in/IN
Key/NNP
West/NNP
that/IN
President/NNP
Carter/NNP
created/VBD
in/IN
1980/CD
./.
The/DT
brigade/NN
has/VBZ
n't/RB
been/VBN
heard/VBN
from/IN
since/RB
,/,
but/CC
we/PRP
keep/VBP
the/DT
staff/NN
around/RB
just/RB
in/IN
case/NN
./.
George/NNP
Marshall/NNP
's/POS
ghost/NN
is/VBZ
much/RB
more/RBR
difficult/JJ
to/TO
keep/VB
happy/JJ
./.
We/PRP
keep/VBP
a/DT
lot/NN
of/IN
shrines/NNS
to/TO
him/PRP
around/IN
the/DT
Pentagon/NNP
:/:
statues/NNS
,/,
busts/NNS
,/,
relics/NNS
and/CC
such/JJ
./.
The/DT
Army/NNP
headquarters/NN
on/IN
the/DT
third/JJ
deck/NN
of/IN
the/DT
Pentagon/NNP
used/VBD
to/TO
burn/VB
a/DT
lot/NN
of/IN
incense/NN
to/TO
him/PRP
,/,
but/CC
the/DT
Navy/NNP
headquarters/NN
on/IN
the/DT
fourth/JJ
deck/NN
made/VBD
them/PRP
stop/VB
it/PRP
./.
You/PRP
see/VBP
,/,
Marshall/NNP
had/VBD
this/DT
thing/NN
about/IN
the/DT
Navy/NNP
and/CC
the/DT
Marines/NNPS
--/:
he/PRP
wanted/VBD
to/TO
make/VB
them/PRP
part/NN
of/IN
the/DT
Army/NNP
but/CC
Secretary/NNP
of/IN
the/DT
Navy/NNP
James/NNP
Forrestal/NNP
blocked/VBD
him/PRP
./.
Now/RB
his/PRP$
ghost/NN
wo/MD
n't/RB
let/VB
up/RB
till/IN
it/PRP
's/VBZ
done/VBN
./.
To/TO
keep/VB
him/PRP
quiet/VB
we/PRP
invent/VBP
a/DT
new/JJ
unified/JJ
command/NN
every/DT
year/NN
or/CC
so/RB
run/VB
by/IN
the/DT
Army/NNP
or/CC
the/DT
Air/NNP
Force/NNP
and/CC
put/VBD
more/JJR
of/IN
the/DT
Navy/NNP
and/CC
Marines/NNPS
under/IN
it/PRP
./.
But/CC
we/PRP
still/RB
hear/VBP
him/PRP
moaning/VBG
at/IN
night/NN
because/IN
the/DT
Navy/NNP
has/VBZ
a/DT
few/JJ
ships/NNS
left/VBN
,/,
and/CC
to/TO
satisfy/VB
him/PRP
the/DT
Navy/NNP
's/POS
sea/NN
lift/NN
forces/NNS
were/VBD
given/VBN
to/TO
a/DT
new/JJ
Air/NNP
Force/NNP
bureaucracy/NN
in/IN
Illinois/NNP
,/,
its/PRP$
space/NN
operations/NNS
to/TO
another/DT
command/NN
in/IN
Colorado/NNP
,/,
the/DT
frogmen/NNS
to/TO
a/DT
new/JJ
Army/NNP
bureaucracy/NN
in/IN
Fort/NNP
Bragg/NNP
,/,
and/CC
the/DT
Navy/NNP
's/POS
Indian/NNP
Ocean/NNP
and/CC
Persian/NNP
Gulf/NNP
forces/NNS
to/TO
an/DT
Army/NNP
bureaucracy/NN
in/IN
Florida/NNP
./.
Which/WDT
brings/VBZ
up/RB
the/DT
worst/JJS
and/CC
meanest/JJS
ghost/NN
of/IN
all/DT
--/:
the/DT
ghost/NN
of/IN
the/DT
shah/NN
of/IN
Iran/NNP
./.
When/WRB
the/DT
shah/NN
died/VBD
,/,
President/NNP
Carter/NNP
was/VBD
so/RB
scared/VBN
that/IN
the/DT
shah/NN
's/POS
ghost/NN
would/MD
blame/VB
him/PRP
for/IN
shoving/VBG
him/PRP
out/RP
to/TO
make/VB
way/NN
for/IN
the/DT
ayatollah/NN
that/IN
he/PRP
declared/VBD
the/DT
Carter/NNP
Doctrine/NNP
./.
Mr./NNP
Carter/NNP
said/VBD
he/PRP
would/MD
go/VB
to/TO
war/NN
to/TO
stop/VB
anyone/NN
from/IN
trying/VBG
to/TO
grab/VB
Iran/NNP
./.
But/CC
that/DT
ghost/NN
would/MD
n't/RB
settle/VB
for/IN
words/NNS
,/,
he/PRP
wanted/VBD
money/NN
and/CC
people/NNS
--/:
lots/NNS
./.
So/RB
Mr./NNP
Carter/NNP
formed/VBD
three/CD
new/JJ
Army/NNP
divisions/NNS
and/CC
gave/VBD
them/PRP
to/TO
a/DT
new/JJ
bureaucracy/NN
in/IN
Tampa/NNP
called/VBN
the/DT
Rapid/NNP
Deployment/NNP
Force/NNP
./.
But/CC
that/DT
ghost/NN
was/VBD
n't/RB
fooled/VBN
;/:
he/PRP
knew/VBD
the/DT
RDF/NNP
was/VBD
neither/CC
rapid/JJ
nor/CC
deployable/JJ
nor/CC
a/DT
force/NN
--/:
even/RB
though/IN
it/PRP
cost/VBD
$/$
8/CD
billion/CD
or/CC
$/$
10/CD
billion/CD
a/DT
year/NN
./.
After/IN
Mr./NNP
Carter/NNP
was/VBD
defeated/VBN
in/IN
1980/CD
,/,
the/DT
shah/NN
's/POS
ghost/NN
claimed/VBD
the/DT
credit/NN
and/CC
then/RB
went/VBD
after/IN
President/NNP
Reagan/NNP
and/CC
Cap/NNP
Weinberger/NNP
./.
I/PRP
saw/VBD
what/WP
he/PRP
did/VBD
to/TO
them/PRP
firsthand/RB
./.
It/PRP
made/VBD
my/PRP$
shoelaces/NNS
dance/VB
with/IN
terror/NN
./.
Why/WRB
,/,
he/PRP
used/VBD
to/TO
lay/VB
in/IN
wait/NN
for/IN
Cap/NNP
;/:
suddenly/RB
he/PRP
'd/MD
leap/VB
from/IN
behind/IN
some/DT
statue/NN
of/IN
Marshall/NNP
onto/IN
Cap/NNP
's/POS
chest/NN
and/CC
grab/VB
him/PRP
by/IN
the/DT
throat/NN
and/CC
choke/VB
him/PRP
till/IN
he/PRP
coughed/VBD
up/RP
an/DT
additional/JJ
$/$
2/CD
billion/CD
or/CC
so/RB
./.
Cap/NNP
added/VBD
four/CD
more/JJR
divisions/NNS
to/TO
the/DT
Army/NNP
,/,
two/CD
active/JJ
and/CC
two/CD
reserve/JJ
;/:
two/CD
carrier/NN
groups/NNS
to/TO
the/DT
Navy/NNP
;/:
a/DT
division/NN
--/:
equivalent/JJ
to/TO
the/DT
Marines/NNPS
;/:
and/CC
the/DT
C-5B/NN
,/,
KC-10/NN
,/,
C-17/NN
and/CC
a/DT
thousand/CD
tactical/JJ
aircraft/NN
to/TO
the/DT
Air/NNP
Force/NNP
./.
He/PRP
bought/VBD
$/$
4/CD
billion/CD
in/IN
prepositioning/JJ
ships/NNS
and/CC
$/$
7/CD
billion/CD
in/IN
ammo/NN
and/CC
equipment/NN
to/TO
fill/VB
them/PRP
,/,
and/CC
parked/VBD
them/PRP
at/IN
a/DT
new/JJ
$/$
6/CD
billion/CD
base/NN
at/IN
Diego/NNP
Garcia/NNP
in/IN
the/DT
middle/NN
of/IN
the/DT
Indian/NNP
Ocean/NNP
./.
He/PRP
dedicated/VBD
all/PDT
these/DT
new/JJ
forces/NNS
to/TO
the/DT
Persian/NNP
Gulf/NNP
./.
One/CD
night/NN
both/DT
Marshall/NNP
's/POS
ghost/NN
and/CC
the/DT
shah/NN
's/POS
ghost/NN
together/RB
caught/VBN
Cap/NNP
and/CC
threw/VBD
him/PRP
to/TO
the/DT
ground/NN
./.
Before/IN
they/PRP
let/VB
him/PRP
go/VB
he/PRP
added/VBD
a/DT
thousand/CD
bureaucrats/NNS
to/TO
the/DT
RDF/NNP
in/IN
Tampa/NNP
and/CC
renamed/VBD
it/PRP
Central/NNP
Command/NNP
./.
He/PRP
gave/VBD
those/DT
bureaucrats/NNS
charge/NN
of/IN
all/DT
naval/JJ
operations/NNS
in/IN
the/DT
Persian/NNP
Gulf/NNP
and/CC
Indian/NNP
Ocean/NNP
./.
Marshall/NNP
figured/VBD
it/PRP
would/MD
be/VB
good/JJ
training/NN
for/IN
those/DT
soldiers/NNS
--/:
someday/RB
maybe/RB
they/PRP
would/MD
get/VB
the/DT
whole/JJ
Navy/NNP
./.
They/PRP
had/VBD
fun/NN
moving/VBG
the/DT
carriers/NNS
around/RP
,/,
but/CC
it/PRP
turned/VBD
out/RB
that/IN
they/PRP
had/VBD
forgotten/VBN
all/DT
about/IN
mine/JJ
sweepers/NNS
./.
But/CC
the/DT
shah/NN
still/RB
kept/VBD
leaping/VBG
out/IN
at/IN
Cap/NNP
,/,
so/RB
Cap/NNP
bought/VBD
a/DT
hundred/CD
merchant/NN
ships/NNS
more/JJR
and/CC
$/$
7/CD
billion/CD
of/IN
loading/NN
barges/NNS
,/,
ramps/NNS
,/,
etc./FW
,/,
in/IN
order/NN
that/IN
those/DT
seven/CD
new/JJ
Army/NNP
divisions/NNS
and/CC
three/CD
Marine/NNP
brigades/NNS
could/MD
unload/VB
from/IN
all/PDT
those/DT
new/JJ
ships/NNS
and/CC
aircraft/NN
and/CC
go/VB
to/TO
war/NN
in/IN
the/DT
Zagros/NNP
mountains/NNS
./.
Then/RB
suddenly/RB
Ike/NNP
's/POS
ghost/NN
came/VBD
to/TO
visit/VB
and/CC
said/VBD
,/,
``/``
What/WP
the/DT
hell/NN
are/VBP
you/PRP
doing/VBG
planning/VBG
for/IN
a/DT
land/NN
war/NN
in/IN
Asia/NNP
12,000/CD
miles/NNS
away/RB
?/.
We/PRP
'd/MD
get/VB
our/PRP$
asses/NNS
kicked/VBN
./.
''/''
Lucky/JJ
for/IN
Cap/NNP
,/,
Ike/NNP
was/VBD
easygoing/JJ
and/CC
soon/RB
went/VBD
away/RB
,/,
while/IN
the/DT
shah/NN
--/:
he/PRP
kept/VBD
coming/VBG
back/RB
./.
So/RB
the/DT
U.S./NNP
found/VBD
itself/PRP
paying/VBG
about/IN
$/$
2/CD
billion/CD
in/IN
baksheesh/NN
to/TO
various/JJ
Arab/JJ
potentates/NNS
for/IN
basing/VBG
rights/NNS
around/IN
the/DT
Indian/NNP
Ocean/NNP
./.
We/PRP
had/VBD
great/JJ
success/NN
in/IN
Somalia/NNP
./.
But/CC
then/RB
it/PRP
turned/VBD
out/RB
that/IN
President/NNP
Siad/NNP
Barrah/NNP
was/VBD
not/RB
at/IN
all/DT
a/DT
nice/JJ
person/NN
and/CC
the/DT
Navy/NNP
pointed/VBD
out/RB
that/IN
the/DT
base/NN
he/PRP
promised/VBD
us/PRP
in/IN
Berbera/NNP
had/VBD
silted/VBN
up/RB
about/IN
a/DT
hundred/CD
years/NNS
ago/RB
and/CC
anyway/RB
was/VBD
1,244/CD
miles/NNS
from/IN
the/DT
mouth/NN
of/IN
the/DT
Gulf/NNP
./.
who/WP
's/VBZ
counting/VBG
./.
Berbera/NNP
was/VBD
the/DT
best/JJS
we/PRP
could/MD
get/VB
,/,
so/RB
we/PRP
stay/VBP
in/IN
bed/NN
with/IN
President/NNP
Barrah/NNP
./.
All/PDT
these/DT
reports/NNS
about/IN
him/PRP
committing/VBG
genocide/NN
are/VBP
probably/RB
exaggerated/JJ
anyway/RB
./.
But/CC
would/MD
n't/RB
you/PRP
know/VB
,/,
now/RB
that/IN
we/PRP
are/VBP
spending/VBG
jillions/NNS
of/IN
dollars/NNS
,/,
and/CC
have/VBP
built/VBN
those/DT
new/JJ
divisions/NNS
and/CC
new/JJ
air/NN
wings/NNS
,/,
and/CC
have/VBP
positioned/VBN
all/PDT
these/DT
ships/NNS
and/CC
supplies/NNS
to/TO
fight/VB
the/DT
Russians/NNPS
in/IN
Iran/NNP
,/,
the/DT
Russians/NNPS
seem/VBP
to/TO
have/VB
lost/VBN
interest/NN
in/IN
the/DT
whole/JJ
subject/NN
./.
Meanwhile/RB
,/,
Congress/NNP
is/VBZ
cutting/VBG
huge/JJ
chunks/NNS
out/IN
of/IN
the/DT
rest/NN
of/IN
the/DT
defense/NN
budget/NN
./.
Predictably/RB
,/,
some/DT
Navy/NNP
guys/NNS
said/VBD
:/:
``/``
Do/VB
we/PRP
still/RB
need/VB
to/TO
keep/VB
all/DT
18/CD
Army/NNP
divisions/NNS
on/IN
active/JJ
duty/NN
and/CC
all/PDT
those/DT
extra/JJ
land-based/JJ
aircraft/NN
without/IN
bases/NNS
and/CC
all/PDT
those/DT
Army/NNP
guys/NNS
playing/VBG
admiral/NN
in/IN
Tampa/NNP
?/.
Could/MD
n't/RB
we/PRP
save/VB
$/$
20/CD
billion/CD
or/CC
$/$
30/CD
billion/CD
a/DT
year/NN
by/IN
shifting/VBG
that/DT
stuff/NN
to/TO
the/DT
reserves/NNS
?/.
And/CC
why/WRB
not/RB
save/VB
the/DT
costs/NNS
of/IN
a/DT
thousand/CD
bureaucrats/NNS
by/IN
abolishing/VBG
Central/NNP
Command/NNP
and/CC
putting/VBG
responsibility/NN
for/IN
Gulf/NNP
naval/JJ
operations/NNS
back/RB
where/WRB
it/PRP
belongs/VBZ
,/,
afloat/RB
with/IN
the/DT
task/NN
force/NN
commander/NN
in/IN
the/DT
Gulf/NNP
?/.
And/CC
where/WRB
were/VBD
all/RB
our/PRP$
handsomely/RB
paid/VBN
Indian/NNP
Ocean/NNP
allies/NNS
last/JJ
year/NN
when/WRB
our/PRP$
convoys/NNS
were/VBD
being/VBG
attacked/VBN
?/.
''/''
Questions/NNS
like/JJ
that/DT
really/RB
stir/VBP
up/RP
Marshall/NNP
's/POS
ghost/NN
./.
He/PRP
appeared/VBD
late/JJ
one/CD
night/NN
in/IN
the/DT
bedroom/NN
of/IN
the/DT
new/JJ
defense/NN
secretary/NN
,/,
Dick/NNP
Cheney/NNP
./.
Marshall/NNP
came/VBD
clanking/VBG
in/IN
like/JJ
Marley/NNP
's/POS
ghost/NN
dragging/VBG
those/DT
chains/NNS
of/IN
brigades/NNS
and/CC
air/NN
wings/NNS
and/CC
links/NNS
with/IN
Arab/JJ
despots/NNS
./.
He/PRP
would/MD
n't/RB
leave/VB
until/IN
Mr./NNP
Cheney/NNP
promised/VBD
to/TO
do/VB
whatever/WDT
the/DT
Pentagon/NNP
systems/NNS
analysts/NNS
told/VBD
him/PRP
./.
So/RB
next/JJ
day/NN
Mr./NNP
Cheney/NNP
went/VBD
out/RB
and/CC
did/VBD
just/RB
that/DT
:/:
He/PRP
canceled/VBD
the/DT
600-ship/JJ
Navy/NNP
and/CC
cut/VBD
back/RB
one/CD
carrier/NN
and/CC
20/CD
frigates/NNS
./.
Then/RB
he/PRP
canceled/VBD
production/NN
of/IN
the/DT
Navy/NNP
's/POS
most/RBS
important/JJ
carrier/NN
aircraft/NN
,/,
the/DT
F-14/NN
and/CC
the/DT
A-6/NN
./.
On/IN
the/DT
other/JJ
hand/NN
,/,
Mr./NNP
Cheney/NNP
retained/VBD
all/PDT
those/DT
new/JJ
land/NN
forces/NNS
./.
Marshall/NNP
's/POS
ghost/NN
is/VBZ
satisfied/JJ
for/IN
now/RB
,/,
but/CC
he/PRP
'll/MD
be/VB
back/RB
./.
What/WP
with/IN
Halloween/NNP
coming/VBG
and/CC
bigger/JJR
defense/NN
cuts/NNS
looming/VBG
,/,
more/JJR
and/CC
more/JJR
Pentagon/NNP
bureaucrats/NNS
are/VBP
crawling/VBG
under/IN
their/PRP$
desks/NNS
./.
They/PRP
know/VBP
that/IN
they/PRP
can/MD
hold/VB
off/RP
the/DT
ghosts/NNS
only/RB
a/DT
little/JJ
while/NN
longer/RB
by/IN
cutting/VBG
carriers/NNS
and/CC
ships/NNS
./.
Then/RB
the/DT
whole/JJ
thing/NN
will/MD
start/VB
to/TO
collapse/VB
,/,
just/RB
as/IN
it/PRP
did/VBD
in/IN
the/DT
1970s/NNS
,/,
and/CC
the/DT
ghosts/NNS
and/CC
banshees/NNS
will/MD
be/VB
howling/VBG
through/IN
the/DT
place/NN
turning/VBG
people/NNS
's/POS
hair/NN
white/JJ
./.
Gives/VBZ
me/PRP
the/DT
willies/NNS
just/RB
thinking/VBG
about/IN
it/PRP
./.
Mr./NNP
Lehman/NNP
,/,
a/DT
Reagan/NNP
Navy/NNP
secretary/NN
,/,
is/VBZ
a/DT
managing/NN
director/NN
of/IN
PaineWebber/NNP
./.
The/DT
metal/NN
and/CC
marble/NN
lobby/NN
of/IN
CenTrust/NNP
Bank/NNP
's/POS
headquarters/NN
is/VBZ
grander/JJR
than/IN
your/PRP$
average/JJ
savings/NNS
and/CC
loan/NN
./.
For/IN
one/CD
thing/NN
,/,
there/EX
is/VBZ
an/DT
old/JJ
master/NN
on/IN
the/DT
wall/NN
--/:
``/``
Samuel/NNP
Anointing/VBG
David/NNP
,/,
''/''
a/DT
big/JJ
baroque/JJ
canvas/NN
painted/VBN
by/IN
Mattia/NNP
Preti/NNP
,/,
a/DT
17th-century/JJ
Neapolitan/NNP
./.
At/IN
the/DT
moment/NN
,/,
however/RB
,/,
the/DT
painting/NN
is/VBZ
a/DT
nagging/VBG
reminder/NN
of/IN
the/DT
problems/NNS
that/WDT
have/VBP
engulfed/VBN
CenTrust/NNP
and/CC
its/PRP$
flamboyant/JJ
chairman/NN
and/CC
chief/JJ
executive/NN
,/,
David/NNP
L./NNP
Paul/NNP
./.
In/IN
an/DT
international/JJ
buying/NN
spree/NN
that/WDT
began/VBD
barely/RB
two/CD
years/NNS
ago/RB
,/,
Mr./NNP
Paul/NNP
amassed/VBD
a/DT
collection/NN
of/IN
about/IN
30/CD
pre-18th-century/JJ
works/NNS
,/,
including/VBG
the/DT
Preti/NNP
,/,
at/IN
a/DT
total/JJ
cost/NN
of/IN
$/$
28/CD
million/CD
./.
By/IN
midnight/NN
Oct./NNP
6/CD
,/,
all/DT
of/IN
the/DT
paintings/NNS
were/VBD
supposed/VBN
to/TO
have/VB
been/VBN
sold/VBN
off/RB
,/,
under/IN
orders/NNS
from/IN
Florida/NNP
's/POS
comptroller/NN
,/,
whose/WP$
office/NN
regulates/VBZ
the/DT
state/NN
's/POS
S&Ls/NNS
./.
CenTrust/NNP
did/VBD
n't/RB
meet/VB
the/DT
deadline/NN
./.
The/DT
collection/NN
was/VBD
at/IN
the/DT
heart/NN
of/IN
a/DT
grandiose/JJ
plan/NN
Mr./NNP
Paul/NNP
had/VBD
in/IN
which/WDT
the/DT
art/NN
was/VBD
to/TO
do/VB
double/JJ
duty/NN
--/:
as/IN
an/DT
investment/NN
for/IN
CenTrust/NNP
and/CC
as/IN
decoration/NN
for/IN
the/DT
S&L/NNP
's/POS
new/JJ
office/NN
tower/NN
,/,
designed/VBN
by/IN
I.M./NNP
Pei/NNP
./.
The/DT
rub/NN
is/VBZ
that/IN
the/DT
$/$
28/CD
million/CD
was/VBD
plucked/VBN
from/IN
the/DT
funds/NNS
of/IN
this/DT
federally/RB
insured/JJ
institution/NN
even/RB
as/IN
CenTrust/NNP
was/VBD
losing/VBG
money/NN
hand/RB
over/IN
fist/RB
./.
Mr./NNP
Paul/NNP
had/VBD
no/DT
right/NN
to/TO
buy/VB
art/NN
for/IN
the/DT
S&L/NN
in/IN
the/DT
first/JJ
place/NN
--/:
it/PRP
is/VBZ
n't/RB
on/IN
the/DT
comptroller/NN
's/POS
``/``
permissible/JJ
''/''
list/NN
--/:
without/IN
seeking/VBG
a/DT
special/JJ
dispensation/NN
,/,
which/WDT
he/PRP
did/VBD
not/RB
do/VB
./.
Besides/IN
that/DT
,/,
some/DT
of/IN
the/DT
paintings/NNS
that/WDT
were/VBD
to/TO
grace/VB
the/DT
walls/NNS
of/IN
CenTrust/NNP
actually/RB
ended/VBD
up/RB
hanging/VBG
in/IN
the/DT
chairman/NN
's/POS
estate/NN
on/IN
La/NNP
Gorce/NNP
Isle/NNP
off/IN
Miami/NNP
Beach/NNP
./.
Last/JJ
spring/NN
,/,
the/DT
comptroller/NN
's/POS
office/NN
called/VBD
a/DT
halt/NN
to/TO
Mr./NNP
Paul/NNP
's/POS
fling/NN
,/,
giving/VBG
him/PRP
six/CD
months/NNS
to/TO
sell/VB
the/DT
paintings/NNS
./.
The/DT
acquisitions/NNS
,/,
officials/NNS
said/VBD
in/IN
a/DT
letter/NN
to/TO
Mr./NNP
Paul/NNP
,/,
were/VBD
``/``
unsafe/JJ
,/,
unsound/JJ
and/CC
unauthorized/JJ
./.
''/''
So/RB
far/RB
,/,
Mr./NNP
Paul/NNP
has/VBZ
unloaded/VBN
but/CC
three/CD
of/IN
his/PRP$
masterpieces/NNS
,/,
he/PRP
wo/MD
n't/RB
say/VB
to/TO
whom/WP
./.
The/DT
comptroller/NN
's/POS
office/NN
says/VBZ
it/PRP
is/VBZ
``/``
monitoring/VBG
the/DT
situation/NN
./.
''/''
Though/IN
the/DT
agency/NN
could/MD
remove/VB
Mr./NNP
Paul/NNP
,/,
it/PRP
has/VBZ
no/DT
current/JJ
intention/NN
to/TO
do/VB
that/DT
./.
``/``
It/PRP
's/VBZ
not/RB
like/IN
selling/VBG
Chevrolets/NNPS
,/,
''/''
Mr./NNP
Paul/NNP
says/VBZ
,/,
as/IN
he/PRP
takes/VBZ
a/DT
drag/NN
on/IN
a/DT
goldbanded/VBN
St./NNP
Moritz/NNP
cigarette/NN
./.
``/``
The/DT
last/JJ
six/CD
months/NNS
has/VBZ
established/VBN
the/DT
quality/NN
of/IN
the/DT
collection/NN
./.
There/EX
's/VBZ
no/DT
fire/NN
sale/NN
here/RB
./.
''/''
Despite/IN
Mr./NNP
Paul/NNP
's/POS
characteristic/JJ
hauteur/NN
,/,
the/DT
50-year-old/JJ
,/,
chain-smoking/NN
dynamo/NN
is/VBZ
finding/VBG
that/IN
getting/VBG
CenTrust/NNP
--/:
Florida/NNP
's/POS
largest/JJS
thrift/NN
institution/NN
--/:
out/IN
of/IN
its/PRP$
riskiest/JJS
investments/NNS
is/VBZ
much/RB
tougher/JJR
than/IN
getting/VBG
into/IN
them/PRP
had/VBD
been/VBN
./.
Paintings/NNS
are/VBP
just/RB
part/NN
of/IN
the/DT
picture/NN
./.
Although/IN
Mr./NNP
Paul/NNP
has/VBZ
pared/VBN
a/DT
$/$
1.35/CD
billion/CD
junk-bond/NN
portfolio/NN
to/TO
less/JJR
than/IN
$/$
900/CD
million/CD
since/IN
April/NNP
,/,
the/DT
high-yield/JJ
debt/NN
market/NN
has/VBZ
plummeted/VBN
./.
Divesting/VBG
itself/PRP
of/IN
what/WP
is/VBZ
left/VBN
,/,
as/IN
is/VBZ
required/VBN
of/IN
all/DT
thrift/NN
institutions/NNS
by/IN
July/NNP
1994/CD
under/IN
the/DT
new/JJ
federal/JJ
S&L/NN
bailout/NN
law/NN
,/,
may/MD
well/RB
prove/VB
difficult/JJ
./.
And/CC
CenTrust/NNP
has/VBZ
other/JJ
problems/NNS
./.
Late/RB
last/JJ
week/NN
federal/JJ
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thrift/NN
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to/TO
stop/VB
paying/VBG
dividends/NNS
on/IN
its/PRP$
preferred/JJ
stock/NN
--/:
a/DT
move/NN
that/WDT
suggests/VBZ
deep/JJ
concern/NN
about/IN
an/DT
institution/NN
./.
Mr./NNP
Paul/NNP
has/VBZ
a/DT
plan/NN
to/TO
bring/VB
in/IN
$/$
150/CD
million/CD
by/IN
selling/VBG
off/RP
63/CD
of/IN
CenTrust/NNP
's/POS
71/CD
branches/NNS
,/,
but/CC
it/PRP
has/VBZ
yet/RB
to/TO
be/VB
approved/VBN
by/IN
regulators/NNS
./.
It/PRP
is/VBZ
Mr./NNP
Paul/NNP
's/POS
art/NN
venture/NN
,/,
however/RB
,/,
that/WDT
has/VBZ
drawn/VBN
the/DT
most/JJS
attention/NN
from/IN
investors/NNS
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regulators/NNS
,/,
not/RB
to/TO
mention/VB
galleries/NNS
throughout/IN
the/DT
world/NN
./.
Embittered/JJ
shareholders/NNS
some/DT
of/IN
whom/WP
are/VBP
suing/VBG
)/)
say/VB
the/DT
chairman/NN
and/CC
his/PRP$
collection/NN
epitomize/VBP
the/DT
excesses/NNS
of/IN
speculation/NN
that/IN
set/VBN
off/RP
the/DT
national/JJ
S&L/NN
crisis/NN
./.
CenTrust/NNP
shares/NNS
have/VBP
fallen/VBN
sharply/RB
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price/NN
from/IN
a/DT
high/JJ
of/IN
$/$
15.125/CD
in/IN
1986/CD
to/TO
close/VB
yesterday/NN
at/IN
$/$
2.875/CD
./.
Gallery/NN
directors/NNS
,/,
meanwhile/RB
,/,
say/VBP
Mr./NNP
Paul/NNP
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others/NNS
of/IN
his/PRP$
ilk/NN
have/VBP
left/VBN
an/DT
indelible/JJ
mark/NN
on/IN
the/DT
art/NN
world/NN
--/:
and/CC
not/RB
for/IN
the/DT
better/RBR
./.
Collectors/NNS
do/VBP
n't/RB
say/VB
``/``
It/PRP
's/VBZ
a/DT
van/NNP
Gogh/NNP
''/''
anymore/RB
,/,
laments/VBZ
Harry/NNP
Brooks/NNP
,/,
the/DT
president/NN
of/IN
Wildenstein/NNP
&/CC
Co./NNP
,/,
a/DT
New/NNP
York/NNP
gallery/NN
./.
``/``
They/PRP
say/VBP
,/,
`/``
Johnny/NNP
Payson/NNP
got/VBD
$/$
53/CD
million/CD
for/IN
his/PRP$
,/,
so/RB
certainly/RB
$/$
10/CD
million/CD
is/VBZ
n't/RB
too/RB
much/JJ
for/IN
mine/NN
./.
'/''
The/DT
great/JJ
collectors/NNS
we/PRP
depended/VBD
on/IN
,/,
such/JJ
as/IN
Paul/NNP
Mellon/NNP
or/CC
Norton/NNP
Simon/NNP
,/,
have/VBP
stopped/VBN
buying/VBG
,/,
and/CC
the/DT
new/JJ
buyers/NNS
are/VBP
brilliant/JJ
men/NNS
who/WP
made/VBD
money/NN
in/IN
the/DT
stock/NN
market/NN
or/CC
in/IN
takeovers/NNS
and/CC
rushed/VBD
into/IN
collecting/VBG
.../:
./.
''/''
Mr./NNP
Payson/NNP
,/,
an/DT
art/NN
dealer/NN
and/CC
collector/NN
,/,
sold/VBD
Vincent/NNP
van/NNP
Gogh/NNP
's/POS
``/``
Irises/NNS
''/''
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a/DT
Sotheby/NNP
's/POS
auction/NN
in/IN
November/NNP
1987/CD
to/TO
Australian/JJ
businessman/NN
Alan/NNP
Bond/NNP
./.
Trouble/NN
is/VBZ
,/,
Mr./NNP
Bond/NNP
has/VBZ
yet/RB
to/TO
pay/VB
up/RB
,/,
and/CC
until/IN
he/PRP
does/VBZ
,/,
Sotheby/NNP
's/POS
has/VBZ
the/DT
painting/NN
under/IN
lock/NN
and/CC
key/NN
./.
When/WRB
Mr./NNP
Paul/NNP
moved/VBD
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on/IN
the/DT
art/NN
market/NN
,/,
he/PRP
let/VBD
it/PRP
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known/VBN
that/IN
virtually/RB
no/DT
piece/NN
was/VBD
too/RB
costly/JJ
to/TO
be/VB
considered/VBN
by/IN
CenTrust/NNP
./.
He/PRP
established/VBD
his/PRP$
reputation/NN
as/IN
a/DT
freespender/NN
in/IN
January/NNP
last/JJ
year/NN
at/IN
Sotheby/NNP
's/POS
auction/NN
of/IN
the/DT
Linda/NNP
and/CC
Gerald/NNP
Guterman/NNP
collection/NN
in/IN
New/NNP
York/NNP
./.
There/RB
,/,
on/IN
one/CD
of/IN
his/PRP$
first/JJ
shopping/NN
trips/NNS
,/,
Mr./NNP
Paul/NNP
picked/VBD
up/RP
several/JJ
paintings/NNS
at/IN
stunning/JJ
prices/NNS
./.
He/PRP
paid/VBD
$/$
2.2/CD
million/CD
,/,
for/IN
instance/NN
,/,
for/IN
a/DT
still/JJ
life/NN
by/IN
Jan/NNP
Jansz./NNP
den/NN
Uyl/NNP
that/WDT
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expected/VBN
to/TO
fetch/VB
perhaps/RB
$/$
700,000/CD
./.
The/DT
price/NN
paid/VBN
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a/DT
record/NN
for/IN
the/DT
artist/NN
./.
Some/DT
64/CD
%/NN
of/IN
items/NNS
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at/IN
the/DT
Guterman/NNP
auction/NN
were/VBD
sold/VBN
,/,
at/IN
an/DT
average/JJ
price/NN
of/IN
$/$
343,333/CD
./.
The/DT
rest/NN
were/VBD
withdrawn/VBN
for/IN
lack/NN
of/IN
acceptable/JJ
bids/NNS
./.
Mr./NNP
Paul/NNP
is/VBZ
said/VBD
by/IN
Mr./NNP
Guterman/NNP
to/TO
have/VB
phoned/VBN
Mr./NNP
Guterman/NNP
,/,
the/DT
New/NNP
York/NNP
developer/NN
selling/VBG
the/DT
collection/NN
,/,
and/CC
gloated/VBD
./.
``/``
He/PRP
says/VBZ
he/PRP
`/``
stole/VBD
them/PRP
,/,
'/''
''/''
recalls/VBZ
Mr./NNP
Guterman/NNP
./.
``/``
And/CC
he/PRP
tells/VBZ
me/PRP
,/,
`/``
If/IN
you/PRP
want/VBP
to/TO
see/VB
your/PRP$
paintings/NNS
,/,
you/PRP
'll/MD
have/VB
to/TO
come/VB
to/TO
my/PRP$
house/NN
in/IN
Florida/NNP
./.
'/''
''/''
Mr./NNP
Paul/NNP
denies/VBZ
phoning/VBG
and/CC
gloating/VBG
./.
``/``
It/PRP
's/VBZ
just/RB
not/RB
true/JJ
,/,
''/''
he/PRP
says/VBZ
./.
Mr./NNP
Paul/NNP
quickly/RB
became/VBD
more/RBR
aggressive/JJ
in/IN
his/PRP$
collecting/NN
,/,
with/IN
the/DT
help/NN
of/IN
George/NNP
Wachter/NNP
,/,
a/DT
Sotheby/NNP
's/POS
expert/NN
in/IN
old/JJ
masters/NNS
whom/WP
he/PRP
met/VBD
at/IN
an/DT
exhibition/NN
of/IN
the/DT
Guterman/NNP
items/NNS
./.
Mr./NNP
Wachter/NNP
,/,
who/WP
became/VBD
his/PRP$
principal/JJ
adviser/NN
,/,
searched/VBD
galleries/NNS
in/IN
London/NNP
,/,
Paris/NNP
and/CC
Monaco/NNP
./.
And/CC
,/,
according/VBG
to/TO
one/CD
dealer/NN
,/,
Mr./NNP
Wachter/NNP
had/VBD
a/DT
penchant/NN
for/IN
introducing/VBG
Mr./NNP
Paul/NNP
with/IN
the/DT
phrase/NN
:/:
``/``
He/PRP
can/MD
buy/VB
anything/NN
./.
''/''
Nicholas/NNP
Hall/NNP
,/,
the/DT
president/NN
of/IN
the/DT
Colnaghi/NNP
U.S.A./NNP
Ltd./NNP
gallery/NN
in/IN
New/NNP
York/NNP
,/,
sold/VBD
Mr./NNP
Paul/NNP
``/``
Abraham/NNP
and/CC
Sarah/NNP
in/IN
the/DT
Wilderness/NN
''/''
by/IN
Giovanni/NNP
Battista/NNP
Tiepolo/NNP
./.
Mr./NNP
Hall/NNP
says/VBZ
Mr./NNP
Paul/NNP
``/``
was/VBD
known/VBN
to/TO
spend/VB
a/DT
lot/NN
of/IN
money/NN
./.
People/NNS
were/VBD
interested/JJ
in/IN
seeing/VBG
him/PRP
,/,
but/CC
it/PRP
was/VBD
recognized/VBN
that/IN
the/DT
route/NN
was/VBD
through/IN
Sotheby/NNP
's/POS
and/CC
particularly/RB
George/NNP
Wachter/NNP
./.
''/''
Mr./NNP
Paul/NNP
thus/RB
developed/VBD
a/DT
close/JJ
,/,
symbiotic/JJ
relationship/NN
with/IN
Sotheby/NNP
's/POS
./.
Mr./NNP
Paul/NNP
was/VBD
eager/JJ
to/TO
assemble/VB
a/DT
collection/NN
for/IN
the/DT
headquarters/NN
CenTrust/NNP
has/VBZ
been/VBN
moving/VBG
into/IN
for/IN
the/DT
greater/JJR
part/NN
of/IN
a/DT
year/NN
./.
Sotheby/NNP
's/POS
,/,
the/DT
auction/NN
house/NN
founded/VBN
in/IN
London/NNP
1744/CD
and/CC
now/RB
under/IN
the/DT
umbrella/NN
of/IN
Sotheby/NNP
's/POS
Holdings/NNPS
Inc./NNP
,/,
was/VBD
hoping/VBG
to/TO
stir/VB
up/RP
interest/NN
in/IN
old/JJ
masters/NNS
as/IN
it/PRP
strove/VBD
to/TO
build/VB
its/PRP$
U.S./NNP
business/NN
./.
European/JJ
dealers/NNS
continued/VBD
to/TO
dominate/VB
the/DT
action/NN
in/IN
old/JJ
masters/NNS
,/,
which/WDT
Sotheby/NNP
's/POS
North/NNP
America/NNP
had/VBD
lately/RB
been/VBN
touting/VBG
in/IN
this/DT
country/NN
./.
For/IN
several/JJ
months/NNS
,/,
there/EX
was/VBD
optimism/NN
all/DT
around/RB
./.
Last/JJ
October/NNP
,/,
Mr./NNP
Paul/NNP
paid/VBD
out/RP
$/$
12/CD
million/CD
of/IN
CenTrust/NNP
's/POS
cash/NN
--/:
plus/CC
a/DT
$/$
1.2/CD
million/CD
commission/NN
--/:
for/IN
``/``
Portrait/NN
of/IN
a/DT
Man/NN
as/IN
Mars/NNP
./.
''/''
The/DT
painting/NN
,/,
attributed/VBN
to/TO
Flemish/JJ
artist/NN
Peter/NNP
Paul/NNP
Rubens/NNP
,/,
was/VBD
purchased/VBN
privately/RB
through/IN
Sotheby/NNP
's/POS
,/,
not/RB
at/IN
auction/NN
./.
In/IN
March/NNP
1989/CD
,/,
just/RB
15/CD
months/NNS
into/IN
his/PRP$
campaign/NN
,/,
Mr./NNP
Paul/NNP
was/VBD
named/VBN
by/IN
Art/NNP
&/CC
Antiques/NNPS
magazine/NN
as/IN
one/CD
of/IN
the/DT
top/JJ
100/CD
individual/JJ
collectors/NNS
in/IN
the/DT
U.S/NNP
./.
``/``
An/DT
unknown/JJ
quantity/NN
to/TO
most/JJS
of/IN
the/DT
art/NN
world/NN
,/,
Paul/NNP
is/VBZ
no/DT
stranger/NN
to/TO
lavish/JJ
spending/NN
,/,
''/''
the/DT
magazine/NN
said/VBD
,/,
noting/VBG
that/IN
he/PRP
does/VBZ
n't/RB
stop/VB
at/IN
paint/NN
on/IN
canvas/NN
but/CC
also/RB
spends/VBZ
big/JJ
on/IN
art/NN
you/PRP
can/MD
eat/VB
./.
``/``
He/PRP
recently/RB
bid/VBD
$/$
30,000/CD
at/IN
a/DT
Paris/NNP
charity/NN
auction/NN
for/IN
a/DT
dinner/NN
cooked/VBN
by/IN
six/CD
of/IN
the/DT
world/NN
's/POS
great/JJ
chefs/NNS
,/,
but/CC
the/DT
final/JJ
party/NN
cost/VB
closer/RBR
to/TO
$/$
100,000/CD
./.
''/''
(/(
Mr./NNP
Paul/NNP
says/VBZ
it/PRP
was/VBD
n't/RB
that/IN
high/JJ
./.
The/DT
art/NN
collection/NN
might/MD
have/VB
come/VBN
to/TO
rival/VB
the/DT
Medicis/NNPS
'/POS
had/VBD
the/DT
Florida/NNP
comptroller/NN
's/POS
office/NN
not/RB
got/VBD
wind/NN
of/IN
Mr./NNP
Paul/NNP
's/POS
aesthetic/JJ
adventure/NN
./.
In/IN
its/PRP$
letter/NN
to/TO
him/PRP
,/,
dated/VBN
March/NNP
2/CD
and/CC
shared/VBN
with/IN
reporters/NNS
,/,
Alex/NNP
Hager/NNP
,/,
the/DT
chief/NN
of/IN
the/DT
thrift-institution/NN
bureau/NN
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the/DT
comptroller/NN
's/POS
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,/,
expressed/VBD
puzzlement/NN
that/IN
the/DT
S&L/NN
could/MD
be/VB
so/RB
profligate/JJ
when/WRB
it/PRP
had/VBD
reported/VBN
losses/NNS
of/IN
more/JJR
than/IN
$/$
13/CD
million/CD
in/IN
its/PRP$
two/CD
preceding/VBG
quarters/NNS
./.
The/DT
state/NN
gave/VBD
CenTrust/NNP
30/CD
days/NNS
to/TO
sell/VB
the/DT
Rubens/NNP
./.
The/DT
comptroller/NN
's/POS
office/NN
eventually/RB
extended/VBD
the/DT
deadline/NN
to/TO
six/CD
months/NNS
but/CC
broadened/VBD
its/PRP$
demands/NNS
,/,
ordering/VBG
that/IN
the/DT
``/``
book/NN
value/NN
of/IN
the/DT
collection/NN
zero/CD
./.
''/''
In/IN
other/JJ
words/NNS
:/:
Get/VB
rid/JJ
of/IN
all/PDT
the/DT
pictures/NNS
./.
The/DT
state/NN
obliquely/RB
noted/VBD
that/IN
unsafe/JJ
banking/NN
practices/NNS
are/VBP
grounds/NNS
for/IN
removing/VBG
an/DT
officer/NN
or/CC
director/NN
and/CC
closed/VBD
with/IN
the/DT
admonition/NN
to/TO
Mr./NNP
Paul/NNP
:/:
``/``
Govern/VB
yourself/PRP
accordingly/RB
./.
''/''
The/DT
state/NN
agency/NN
was/VBD
particularly/RB
vexed/VBN
to/TO
learn/VB
that/IN
the/DT
Rubens/NNP
and/CC
a/DT
half-dozen/NN
other/JJ
paintings/NNS
listed/VBN
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the/DT
bank/NN
's/POS
``/``
furniture/NN
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fixtures/NNS
,/,
''/''
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actually/RB
hanging/VBG
in/IN
the/DT
chairman/NN
's/POS
house/NN
./.
Mr./NNP
Paul/NNP
says/VBZ
that/IN
at/IN
one/CD
point/NN
he/PRP
did/VBD
indeed/RB
have/VB
eight/CD
or/CC
nine/CD
of/IN
the/DT
paintings/NNS
at/IN
home/NN
and/CC
that/IN
the/DT
rest/NN
were/VBD
in/IN
storage/NN
at/IN
Sotheby/NNP
's/POS
./.
He/PRP
explains/VBZ
that/IN
he/PRP
was/VBD
``/``
merely/RB
storing/VBG
the/DT
paintings/NNS
at/IN
home/NN
--/:
with/IN
some/DT
display/NN
--/:
because/IN
of/IN
the/DT
special/JJ
dehumidified/JJ
environment/NN
''/''
required/VBN
for/IN
their/PRP$
safekeeping/NN
,/,
until/IN
CenTrust/NNP
's/POS
new/JJ
building/NN
was/VBD
ready/JJ
for/IN
them/PRP
./.
Still/RB
,/,
the/DT
incident/NN
was/VBD
embarrassing/JJ
./.
It/PRP
came/VBD
on/IN
the/DT
heels/NNS
of/IN
a/DT
number/NN
of/IN
local/JJ
newspaper/NN
articles/NNS
suggesting/VBG
that/IN
Mr./NNP
Paul/NNP
has/VBZ
benefited/VBN
handsomely/RB
from/IN
his/PRP$
association/NN
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CenTrust/NNP
./.
For/IN
instance/NN
,/,
he/PRP
got/VBD
a/DT
$/$
3/CD
million/CD
loan/NN
from/IN
the/DT
S&L/NN
,/,
negotiated/VBN
at/IN
a/DT
below-market/JJ
rate/NN
./.
He/PRP
owns/VBZ
43/CD
%/NN
of/IN
CenTrust/NNP
's/POS
shares/NNS
./.
Adding/VBG
to/TO
Mr./NNP
Paul/NNP
's/POS
problems/NNS
,/,
dealers/NNS
some/DT
with/IN
vested/JJ
interests/NNS
he/PRP
,/,
relying/VBG
rather/RB
too/RB
heavily/RB
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Sotheby/NNP
's/POS
advice/NN
,/,
paid/VBN
much/RB
too/RB
much/RB
for/IN
several/JJ
pieces/NNS
in/IN
the/DT
CenTrust/NNP
collection/NN
./.
The/DT
$/$
12/CD
million/CD
lavished/VBN
on/IN
the/DT
Rubens/NNP
,/,
for/IN
example/NN
,/,
was/VBD
a/DT
record/NN
price/NN
for/IN
the/DT
artist/NN
and/CC
maybe/RB
twice/RB
its/PRP$
value/NN
,/,
given/VBN
a/DT
dispute/NN
among/IN
scholars/NNS
about/IN
its/PRP$
provenance/NN
./.
David/NNP
Tunick/NNP
,/,
the/DT
president/NN
of/IN
David/NNP
Tunick/NNP
Inc./NNP
,/,
a/DT
New/NNP
York/NNP
gallery/NN
,/,
says/VBZ
scholars/NNS
question/VBP
the/DT
authenticity/NN
of/IN
the/DT
Rubens/NNP
./.
It/PRP
may/MD
have/VB
been/VBN
painted/VBN
instead/RB
by/IN
a/DT
Rubens/NNP
associate/NN
./.
``/``
The/DT
feeling/NN
among/IN
many/JJ
experts/NNS
on/IN
the/DT
commercial/JJ
side/NN
is/VBZ
that/IN
the/DT
price/NN
paid/VBN
at/IN
the/DT
time/NN
was/VBD
excessive/JJ
in/IN
any/DT
event/NN
,/,
''/''
Mr./NNP
Tunick/NNP
says/VBZ
./.
``/``
It/PRP
sounds/VBZ
like/IN
with/IN
the/DT
Rubens/NNP
he/PRP
got/VBD
absolutely/RB
taken/VBN
to/TO
the/DT
cleaners/NNS
./.
''/''
Victor/NNP
Wiener/NNP
,/,
the/DT
executive/NN
director/NN
of/IN
the/DT
Appraisers/NNPS
Association/NNP
of/IN
America/NNP
,/,
agrees/VBZ
that/IN
Mr./NNP
Paul/NNP
paid/VBD
very/RB
dearly/RB
for/IN
the/DT
Rubens/NNP
and/CC
adds/VBZ
that/IN
getting/VBG
rid/JJ
of/IN
it/PRP
any/DT
time/NN
soon/RB
for/IN
a/DT
similar/JJ
sum/NN
would/MD
be/VB
quite/RB
a/DT
feat/NN
./.
``/``
It/PRP
's/VBZ
not/RB
beyond/IN
credibility/NN
the/DT
Rubens/NNP
will/MD
someday/RB
be/VB
worth/JJ
$/$
12/CD
million/CD
,/,
but/CC
whether/IN
it/PRP
could/MD
be/VB
sold/VBN
for/IN
that/DT
amount/NN
tomorrow/NN
remains/VBZ
to/TO
be/VB
seen/VBN
./.
''/''
Still/RB
,/,
predicting/NN
is/VBZ
tricky/JJ
./.
``/``
I/PRP
'm/VBP
forever/RB
dumbfounded/JJ
by/IN
what/WP
I/PRP
see/VBP
making/VBG
these/DT
high/JJ
prices/NNS
./.
''/''
Jonathan/NNP
H./NNP
Kress/NNP
,/,
the/DT
son/NN
of/IN
the/DT
painting/NN
's/POS
former/JJ
owner/NN
,/,
Mrs./NNP
Rush/NNP
Kress/NNP
,/,
dismisses/VBZ
the/DT
price/NN
talk/NN
as/IN
``/``
sour/JJ
grapes/NNS
./.
''/''
Dealers/NNS
contemptuous/JJ
of/IN
the/DT
purchase/NN
price/NN
,/,
he/PRP
says/VBZ
,/,
were/VBD
themselves/PRP
interested/JJ
in/IN
buying/VBG
the/DT
Rubens/NNP
but/CC
lost/VBN
out/RB
./.
Mr./NNP
Paul/NNP
,/,
for/IN
his/PRP$
part/NN
,/,
defends/VBZ
the/DT
Rubens/NNP
price/NN
,/,
saying/VBG
a/DT
lot/NN
of/IN
the/DT
experts/NNS
have/VBP
never/RB
seen/VBN
the/DT
thing/NN
itself/PRP
./.
``/``
Most/JJS
of/IN
them/PRP
were/VBD
n't/RB
even/RB
born/VBN
the/DT
last/JJ
time/NN
the/DT
painting/NN
was/VBD
displayed/VBN
publicly/RB
,/,
''/''
he/PRP
says/VBZ
./.
Art/NN
prices/NNS
are/VBP
skyrocketing/VBG
,/,
but/CC
a/DT
good/JJ
deal/NN
of/IN
legerdemain/NN
is/VBZ
involved/VBN
in/IN
compiling/VBG
statistics/NNS
on/IN
sales/NNS
./.
Salomon/NNP
Brothers/NNPS
Inc./NNP
,/,
the/DT
investment-banking/NN
firm/NN
,/,
in/IN
its/PRP$
annual/JJ
tally/NN
of/IN
investment/NN
returns/NNS
,/,
reported/VBD
that/IN
old/JJ
masters/NNS
appreciated/VBD
51/CD
%/NN
in/IN
the/DT
year/NN
ended/VBN
June/NNP
1/CD
,/,
the/DT
greatest/JJS
return/NN
of/IN
any/DT
of/IN
13/CD
assets/NNS
it/PRP
tracked/VBD
./.
Impressionist/JJ
and/CC
modern/JJ
paintings/NNS
,/,
not/RB
tracked/VBN
by/IN
Salomon/NNP
,/,
are/VBP
ranked/VBN
even/RB
higher/RBR
at/IN
74/CD
%/NN
by/IN
Sotheby/NNP
's/POS
./.
Salomon/NNP
,/,
moreover/RB
,/,
gets/VBZ
its/PRP$
data/NNS
on/IN
art/NN
appreciation/NN
from/IN
Sotheby/NNP
's/POS
,/,
whose/WP$
prices/NNS
go/VBP
up/RB
with/IN
clients/NNS
like/IN
Mr./NNP
Paul/NNP
in/IN
its/PRP$
thrall/NN
./.
The/DT
percentages/NNS
omit/VBP
from/IN
consideration/NN
the/DT
many/JJ
paintings/NNS
that/WDT
go/VBP
begging/VBG
at/IN
auction/NN
./.
Art/NN
indexes/NNS
track/VBP
winners/NNS
,/,
not/RB
losers/NNS
./.
But/CC
art/NN
that/WDT
has/VBZ
fallen/VBN
sharply/RB
in/IN
value/NN
is/VBZ
rarely/RB
put/VBN
up/IN
for/IN
sale/NN
./.
Also/RB
,/,
at/IN
any/DT
of/IN
Sotheby/NNP
's/POS
auctions/NNS
of/IN
old/JJ
masters/NNS
,/,
roughly/RB
one-third/NN
to/TO
one-fifth/NN
of/IN
what/WP
is/VBZ
offered/VBN
does/VBZ
n't/RB
sell/VB
at/IN
any/DT
price/NN
./.
It/PRP
's/VBZ
not/RB
that/IN
there/EX
are/VBP
n't/RB
any/DT
bids/NNS
,/,
but/CC
the/DT
bids/NNS
do/VBP
n't/RB
meet/VB
the/DT
minimum/JJ
``/``
reserve/NN
''/''
prices/NNS
set/VBN
by/IN
the/DT
sellers/NNS
./.
In/IN
January/NNP
,/,
the/DT
Preti/NNP
painting/NN
that/WDT
now/RB
hangs/VBZ
at/IN
CenTrust/NNP
was/VBD
expected/VBN
to/TO
bring/VB
no/DT
more/RBR
than/IN
$/$
700,000/CD
at/IN
auction/NN
until/IN
Mr./NNP
Paul/NNP
came/VBD
along/RB
with/IN
his/PRP$
$/$
1.15/CD
million/CD
./.
Mr./NNP
Hall/NNP
of/IN
the/DT
Colnaghi/NNP
gallery/NN
says/VBZ
$/$
1.15/CD
million/CD
``/``
would/MD
have/VB
been/VBN
an/DT
impossible/JJ
price/NN
for/IN
anyone/NN
to/TO
ask/VB
for/IN
a/DT
Preti/NNP
four/CD
years/NNS
ago/RB
./.
''/''
But/CC
from/IN
his/PRP$
vantage/NN
point/NN
,/,
it/PRP
is/VBZ
n't/RB
that/IN
Mr./NNP
Paul/NNP
,/,
a/DT
customer/NN
of/IN
his/PRP$
too/RB
,/,
overpaid/VBD
for/IN
the/DT
work/NN
,/,
``/``
a/DT
gargantuan/JJ
painting/NN
by/IN
an/DT
artist/NN
who/WP
is/VBZ
not/RB
a/DT
household/JJ
word/NN
./.
''/''
(/(
The/DT
painting/NN
is/VBZ
10/CD
feet/NNS
wide/JJ
,/,
seven/CD
feet/NNS
high/JJ
./.
It/PRP
just/RB
shows/VBZ
things/NNS
have/VBP
changed/VBN
./.
''/''
Mr./NNP
Paul/NNP
boasts/VBZ
that/IN
he/PRP
spotted/VBD
bargains/NNS
in/IN
old/JJ
masters/NNS
just/RB
before/IN
they/PRP
took/VBD
an/DT
upward/JJ
turn/NN
./.
``/``
They/PRP
went/VBD
up/RB
51/CD
%/NN
last/JJ
year/NN
,/,
and/CC
they/PRP
'll/MD
do/VB
it/PRP
again/RB
this/DT
year/NN
,/,
''/''
he/PRP
declares/VBZ
./.
``/``
They/PRP
were/VBD
a/DT
sleeper/NN
./.
Everybody/NN
was/VBD
out/IN
buying/VBG
Monets/NNPS
./.
''/''
Sotheby/NNP
's/POS
vice/NN
president/NN
Diana/NNP
Levitt/NNP
says/VBZ
the/DT
auction/NN
house/NN
has/VBZ
been/VBN
``/``
assisting/VBG
''/''
Mr./NNP
Paul/NNP
in/IN
selling/VBG
the/DT
paintings/NNS
./.
And/CC
while/IN
Sotheby/NNP
's/POS
chief/JJ
rivals/NNS
in/IN
the/DT
art/NN
world/NN
,/,
private/JJ
art/NN
dealers/NNS
,/,
``/``
wo/MD
n't/RB
be/VB
happy/JJ
to/TO
hear/VB
it/PRP
,/,
''/''
she/PRP
adds/VBZ
,/,
``/``
a/DT
number/NN
of/IN
{/(
the/DT
artworks/NNS
a/DT
substantial/JJ
profit/NN
./.
''/''
Mr./NNP
Paul/NNP
claims/VBZ
to/TO
have/VB
sold/VBN
three/CD
paintings/NNS
,/,
at/IN
more/JJR
than/IN
a/DT
10/CD
%/NN
profit/NN
./.
That/DT
is/VBZ
n't/RB
51/CD
%/NN
,/,
and/CC
the/DT
claim/NN
is/VBZ
n't/RB
documented/VBN
./.
He/PRP
furthermore/RB
denies/VBZ
that/IN
he/PRP
relied/VBD
too/RB
heavily/RB
on/IN
Sotheby/NNP
's/POS
or/CC
Mr./NNP
Wachter/NNP
./.
Mr./NNP
Paul/NNP
says/VBZ
he/PRP
had/VBD
not/RB
one/CD
but/CC
four/CD
advisers/NNS
and/CC
that/IN
he/PRP
never/RB
bid/VBD
impulsively/RB
./.
After/IN
all/DT
,/,
he/PRP
had/VBD
the/DT
counsel/NN
of/IN
``/``
curators/NNS
from/IN
the/DT
most/RBS
reputable/JJ
museums/NNS
in/IN
the/DT
world/NN
./.
''/''
He/PRP
says/VBZ
he/PRP
expects/VBZ
to/TO
sell/VB
the/DT
collection/NN
--/:
including/VBG
the/DT
controversial/JJ
Rubens/NNP
--/:
``/``
carefully/RB
and/CC
prudently/RB
,/,
just/RB
as/IN
it/PRP
was/VBD
put/VBN
together/RB
./.
''/''
But/CC
in/IN
art-world/NN
parlance/NN
,/,
Mr./NNP
Paul/NNP
's/POS
holdings/NNS
are/VBP
``/``
burnt/JJ
./.
''/''
That/DT
is/VBZ
,/,
he/PRP
is/VBZ
being/VBG
compelled/VBN
to/TO
put/VB
them/PRP
on/IN
the/DT
market/NN
too/RB
soon/RB
,/,
and/CC
has/VBZ
already/RB
gotten/VBN
offers/NNS
that/WDT
are/VBP
less/JJR
than/IN
he/PRP
paid/VBD
for/IN
some/DT
of/IN
the/DT
art/NN
works/NNS
./.
``/``
After/IN
a/DT
few/JJ
years/NNS
,/,
you/PRP
can/MD
argue/VB
there/EX
has/VBZ
been/VBN
natural/JJ
appreciation/NN
,/,
''/''
says/VBZ
Susan/NNP
Theran/NNP
,/,
the/DT
publisher/NN
of/IN
Leonard/NN
's/POS
Annual/NNP
Price/NNP
Index/NNP
of/IN
Art/NNP
Auctions/NNPS
./.
But/CC
quick/JJ
turnover/NN
in/IN
artwork/NN
is/VBZ
``/``
like/IN
pawning/VBG
your/PRP$
jewelry/NN
--/:
you/PRP
end/VB
up/RB
with/IN
50/CD
%/NN
./.
People/NNS
hold/VBP
out/RB
and/CC
try/VBP
to/TO
get/VB
a/DT
bargain/NN
./.
''/''
Sotheby/NNP
's/POS
defends/VBZ
itself/PRP
and/CC
Mr./NNP
Paul/NNP
in/IN
the/DT
matter/NN
./.
Mr./NNP
Wachter/NNP
says/VBZ
Mr./NNP
Paul/NNP
was/VBD
a/DT
quick/JJ
study/NN
who/WP
worked/VBD
intensely/RB
and/CC
bought/VBD
the/DT
best/JJS
pictures/NNS
available/JJ
at/IN
the/DT
moment/NN
./.
``/``
On/IN
occasion/NN
,/,
he/PRP
paid/VBD
a/DT
high/JJ
price/NN
,/,
''/''
Mr./NNP
Wachter/NNP
concedes/VBZ
,/,
but/CC
he/PRP
says/VBZ
those/DT
who/WP
bid/VBD
less/RBR
and/CC
dropped/VBD
out/RB
were/VBD
dealers/NNS
who/WP
would/MD
then/RB
have/VB
marked/VBN
up/RP
the/DT
paintings/NNS
to/TO
resell/VB
them/PRP
at/IN
a/DT
profit/NN
to/TO
collectors/NNS
./.
Naomi/NNP
Bernhard/NNP
Levinson/NNP
,/,
a/DT
fine-arts/NNS
appraiser/NN
at/IN
Bernhard/NNP
Associates/NNPS
in/IN
San/NNP
Francisco/NNP
,/,
considers/VBZ
it/PRP
``/``
definite/JJ
conflict/NN
of/IN
interest/NN
for/IN
an/DT
auction/NN
house/NN
to/TO
both/DT
advise/VB
a/DT
client/NN
on/IN
purchases/NNS
and/CC
to/TO
set/VB
price/NN
estimates/NNS
on/IN
the/DT
paintings/NNS
to/TO
be/VB
purchased/VBN
./.
''/''
Sotheby/NNP
's/POS
,/,
she/PRP
says/VBZ
,/,
is/VBZ
``/``
wearing/VBG
both/DT
hats/NNS
./.
''/''
``/``
I/PRP
ca/MD
n't/RB
see/VB
why/WRB
there/EX
would/MD
be/VB
a/DT
conflict/NN
of/IN
interest/NN
,/,
''/''
says/VBZ
Sotheby/NNP
's/POS
Ms./NNP
Levitt/NNP
./.
``/``
Estimates/NNS
are/VBP
based/VBN
on/IN
the/DT
previous/JJ
price/NN
of/IN
similar/JJ
works/NNS
sold/VBN
at/IN
auction/NN
and/CC
current/JJ
market/NN
conditions/NNS
,/,
and/CC
are/VBP
not/RB
affected/JJ
by/IN
any/DT
knowledge/NN
of/IN
who/WP
the/DT
potential/JJ
buyer/NN
could/MD
be/VB
./.
''/''
Frequently/RB
,/,
clients/NNS
express/VBP
interest/NN
in/IN
paintings/NNS
but/CC
do/VBP
n't/RB
end/VB
up/RB
bidding/NN
,/,
she/PRP
adds/VBZ
,/,
``/``
so/RB
we/PRP
do/VBP
n't/RB
know/VB
who/WP
the/DT
potential/JJ
buyer/NN
will/MD
be/VB
./.
''/''
Mr./NNP
Paul/NNP
,/,
in/IN
selling/VBG
off/RP
his/PRP$
paintings/NNS
,/,
is/VBZ
seeking/VBG
at/IN
least/JJS
a/DT
15/CD
%/NN
return/NN
on/IN
the/DT
bank/NN
's/POS
investment/NN
,/,
so/IN
as/IN
to/TO
prove/VB
that/IN
the/DT
venture/NN
was/VBD
sound/JJ
./.
Mr./NNP
Paul/NNP
says/VBZ
that/IN
he/PRP
has/VBZ
feelers/NNS
out/IN
over/IN
much/JJ
of/IN
the/DT
globe/NN
and/CC
that/IN
potential/JJ
buyers/NNS
from/IN
as/RB
far/RB
away/RB
as/IN
Japan/NNP
and/CC
Italy/NNP
have/VBP
examined/VBN
the/DT
collection/NN
./.
Because/IN
of/IN
the/DT
pressure/NN
on/IN
CenTrust/NNP
to/TO
sell/VB
,/,
dealers/NNS
and/CC
collectors/NNS
have/VBP
been/VBN
trying/VBG
to/TO
get/VB
the/DT
paintings/NNS
at/IN
bargain-basement/JJ
prices/NNS
./.
But/CC
so/RB
far/RB
,/,
Mr./NNP
Paul/NNP
and/CC
his/PRP$
advisers/NNS
are/VBP
holding/VBG
fast/RB
./.
One/CD
dealer/NN
,/,
Martin/NNP
Zimet/NNP
of/IN
French/NNP
&/CC
Co./NNP
in/IN
New/NNP
York/NNP
,/,
says/VBZ
he/PRP
``/``
would/MD
have/VB
loved/VBD
to/TO
buy/VB
''/''
a/DT
Jan/NNP
Davids/NNP
de/FW
Heem/NNP
painting/NN
from/IN
the/DT
bank/NN
./.
``/``
I/PRP
tried/VBD
to/TO
steal/VB
the/DT
picture/NN
--/:
to/TO
buy/VB
it/PRP
attractively/RB
--/:
and/CC
{/(
Sotheby/NNP
's/POS
it/PRP
./.
They/PRP
were/VBD
protecting/VBG
his/PRP$
interests/NNS
./.
''/''
Meanwhile/RB
,/,
Mr./NNP
Paul/NNP
and/CC
CenTrust/NNP
executives/NNS
are/VBP
getting/VBG
squeamish/JJ
about/IN
opulence/NN
./.
Mr./NNP
Paul/NNP
has/VBZ
been/VBN
characterized/VBN
as/IN
``/``
the/DT
Great/NNP
Gatsby/NNP
or/CC
something/NN
,/,
''/''
complains/VBZ
Karen/NNP
E./NNP
Brinkman/NNP
,/,
an/DT
executive/NN
vice/NN
president/NN
of/IN
CenTrust/NNP
./.
she/PRP
says/VBZ
,/,
have/VB
distorted/VBN
his/PRP$
personal/JJ
life/NN
./.
Mr./NNP
Paul/NNP
nods/VBZ
in/IN
agreement/NN
./.
``/``
I/PRP
do/VBP
n't/RB
think/VB
I/PRP
have/VBP
a/DT
life/NN
style/NN
that/WDT
is/VBZ
,/,
frankly/RB
,/,
so/RB
flamboyant/JJ
,/,
''/''
he/PRP
says/VBZ
./.
But/CC
at/IN
just/RB
that/DT
moment/NN
,/,
he/PRP
is/VBZ
interrupted/VBN
in/IN
his/PRP$
office/NN
by/IN
a/DT
servant/NN
in/IN
tuxedo/NN
who/WP
pours/VBZ
coffee/NN
from/IN
silver/NN
into/IN
a/DT
cup/NN
of/IN
china/NN
and/CC
dabs/VBZ
the/DT
brim/NN
with/IN
linen/NN
./.
Mr./NNP
Paul/NNP
says/VBZ
,/,
yes/UH
,/,
the/DT
ceiling/NN
in/IN
his/PRP$
executive/NN
suite/NN
is/VBZ
gold-leaf/NN
inlay/NN
./.
The/DT
offices/NNS
are/VBP
done/VBN
in/IN
hardwood/NN
and/CC
oriental/JJ
rugs/NNS
,/,
leatherbound/NN
books/NNS
and/CC
,/,
of/IN
course/NN
,/,
a/DT
$/$
12/CD
million/CD
Rubens/NNP
./.
But/CC
he/PRP
implores/VBZ
that/IN
the/DT
splendor/NN
be/VB
played/VBN
down/RP
./.
``/``
Do/VBP
n't/RB
say/VB
it/PRP
's/VBZ
a/DT
gold/JJ
ceiling/NN
./.
Just/RB
say/VB
the/DT
offices/NNS
are/VBP
tastefully/RB
appointed/JJ
,/,
''/''
he/PRP
says/VBZ
./.
``/``
Otherwise/RB
,/,
the/DT
regulators/NNS
will/MD
take/VB
it/PRP
for/IN
decadence/NN
,/,
and/CC
nowadays/RB
everything/NN
's/VBZ
got/VBD
to/TO
be/VB
pristine/JJ
./.
''/''
Figures/NNS
do/VBP
n't/RB
include/VB
taxes/NNS
or/CC
transaction/NN
costs/NNS
./.
Companies/NNS
listed/VBN
below/RB
reported/VBD
quarterly/JJ
profit/NN
substantially/RB
different/JJ
from/IN
the/DT
average/NN
of/IN
analysts/NNS
'/POS
estimates/NNS
./.
The/DT
companies/NNS
are/VBP
followed/VBN
by/IN
at/IN
least/JJS
three/CD
analysts/NNS
,/,
and/CC
had/VBD
a/DT
minimum/JJ
five-cent/JJ
change/NN
in/IN
actual/JJ
earnings/NNS
per/IN
share/NN
./.
Estimated/VBN

and/CC
actual/JJ
results/NNS
involving/VBG
losses/NNS
are/VBP
omitted/VBN
./.
The/DT
percent/NN
difference/NN
compares/VBZ
actual/JJ
profit/NN
with/IN
the/DT
30-day/JJ
estimate/NN
where/WRB
at/IN
least/JJS
three/CD
analysts/NNS
have/VBP
issues/NNS
forecasts/NNS
in/IN
the/DT
past/JJ
30/CD
days/NNS
./.
Otherwise/RB
,/,
actual/JJ
profit/NN
is/VBZ
compared/VBN
with/IN
the/DT
300-day/JJ
estimate/NN
./.
Source/NN
:/:
Zacks/NNP
Investment/NNP
Research/NNP
its/PRP$
centennial/NN
year/NN
,/,
The/DT
Wall/NNP
Street/NNP
Journal/NNP
will/MD
report/VB
events/NNS
of/IN
the/DT
past/JJ
century/NN
that/DT
stand/NN
as/IN
milestones/NNS
of/IN
American/JJ
business/NN
history/NN
./.
CREATIVE/JJ
ACCOUNTING/NN
,/,
mostly/RB
by/IN
conglomerates/NNS
,/,
forced/VBD
CPAs/NNS
to/TO
change/VB
their/PRP$
way/NN
of/IN
setting/VBG
standards/NNS
to/TO
be/VB
followed/VBN
by/IN
corporations/NNS
reporting/VBG
financial/JJ
results/NNS
,/,
standards/NNS
that/WDT
had/VBD
become/VBN
all/RB
too/RB
flexible/JJ
./.
The/DT
new/JJ
Financial/NNP
Accounting/NNP
Standards/NNPS
Board/NNP
FASB/NNP
1972/CD
to/TO
replace/VB
the/DT
Accounting/NNP
Principles/NNPS
Board/NNP
of/IN
the/DT
American/NNP
Institute/NNP
of/IN
Certified/NNP
Public/NNP
Accountants/NNPS
./.
All/DT
of/IN
the/DT
former/JJ
board/NN
's/POS
members/NNS
were/VBD
CPAs/NNS
,/,
provoking/VBG
conflict-of-interest/NN
criticism/NN
because/IN
they/PRP
were/VBD
writing/VBG
rules/NNS
while/IN
handling/VBG
clients/NNS
'/POS
books/NNS
at/IN
the/DT
same/JJ
time/NN
./.
The/DT
new/JJ
board/NN
's/POS
seven-member/JJ
structure/NN
kept/VBD
four/CD
CPAs/NNS
,/,
but/CC
the/DT
others/NNS
were/VBD
from/IN
industry/NN
and/CC
academia/NN
./.
Francis/NNP
M./NNP
Wheat/NNP
,/,
a/DT
former/JJ
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
member/NN
,/,
headed/VBD
the/DT
panel/NN
that/WDT
had/VBD
studied/VBN
the/DT
issues/NNS
for/IN
a/DT
year/NN
and/CC
proposed/VBD
the/DT
FASB/NNP
on/IN
March/NNP
30/CD
,/,
1972/CD
./.
The/DT
former/JJ
board/NN
had/VBD
produced/VBN
``/``
21/CD
opinions/NNS
and/CC
1,000/CD
critics/NNS
''/''
in/IN
its/PRP$
12-year/JJ
life/NN
,/,
its/PRP$
chairman/NN
had/VBD
conceded/VBN
./.
The/DT
climate/NN
was/VBD
right/JJ
for/IN
the/DT
new/JJ
FASB/NNP
./.
In/IN
the/DT
late/JJ
1960s/NNS
some/DT
CPAs/NNS
failed/VBD
to/TO
correct/VB
such/JJ
abuses/NNS
as/IN
clients/NNS
picking/VBG
permissive/JJ
rules/NNS
that/IN
hyped/VBD
earnings/NNS
and/CC
stock/NN
prices/NNS
./.
And/CC
in/IN
November/NNP
1970/CD
Congress/NNP
had/VBD
passed/VBN
a/DT
special/JJ
act/NN
to/TO
overrule/VB
one/CD
board/NN
rule/NN
./.
Also/RB
,/,
James/NNP
Needham/NNP
,/,
an/DT
SEC/NNP
commissioner/NN
,/,
in/IN
April/NNP
1972/CD
had/VBD
warned/VBN
that/IN
the/DT
industry/NN
might/MD
face/VB
a/DT
``/``
federal/JJ
agency/NN
writing/VBG
accounting/NN
rules/NNS
''/''
if/IN
they/PRP
rejected/VBD
the/DT
FASB/NNP
idea/NN
./.
Keepers/NNS
of/IN
the/DT
books/NNS
,/,
dubbed/VBN
``/``
figure/NN
filberts/NNS
,/,
''/''
loathed/VBD
the/DT
threat/NN
./.
The/DT
FASB/NNP
had/VBD
its/PRP$
initial/JJ
meeting/NN
on/IN
March/NNP
28/CD
,/,
1973/CD
./.
On/IN
Dec./NNP
13/CD
,/,
1973/CD
,/,
it/PRP
issued/VBD
its/PRP$
first/JJ
rule/NN
;/:
it/PRP
required/VBD
companies/NNS
to/TO
disclose/VB
foreign/JJ
currency/NN
translations/NNS
in/IN
U.S./NNP
dollars/NNS
./.
The/DT
FASB/NNP
since/IN
then/RB
has/VBZ
issued/VBN
102/CD
rules/NNS
,/,
and/CC
some/DT
still/RB
rile/VBP
industry/NN
./.
Since/IN
late/RB
1987/CD
,/,
for/IN
example/NN
,/,
it/PRP
has/VBZ
put/VBN
off/RP
a/DT
rule/NN
dealing/VBG
with/IN
deferred/JJ
income/NN
taxes/NNS
because/RB
of/IN
the/DT
continuing/VBG
controversy/NN
over/IN
the/DT
issue/NN
./.
Amcast/NNP
Industrial/NNP
Corp./NNP
said/VBD
it/PRP
plans/VBZ
to/TO
repurchase/VBD
500,000/CD
shares/NNS
,/,
or/CC
about/IN
7/CD
%/NN
of/IN
its/PRP$
shares/NNS
outstanding/JJ
,/,
in/IN
open/JJ
market/NN
transactions/NNS
./.
The/DT
metal/NN
products/NNS
concern/NN
currently/RB
has/VBZ
7.2/CD
million/CD
common/JJ
shares/NNS
outstanding/JJ
./.
Amcast/NNP
previously/RB
had/VBD
said/VBN
it/PRP
planned/VBD
to/TO
repurchase/VB
shares/NNS
,/,
but/CC
did/VBD
n't/RB
disclose/VB
when/WRB
or/CC
how/WRB
many/JJ
shares/NNS
it/PRP
intended/VBD
to/TO
buy/VB
back/RB
./.
The/DT
company/NN
named/VBN
Dillon/NNP
Read/NNP
&/CC
Co./NNP
as/IN
its/PRP$
exclusive/JJ
agent/NN
for/IN
the/DT
stock/NN
buy-back/NN
program/NN
./.
A/DT
seat/NN
on/IN
the/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
was/VBD
sold/VBN
for/IN
$/$
390,000/CD
,/,
down/RB
$/$
5,000/CD
from/IN
the/DT
previous/JJ
sale/NN
last/JJ
Tuesday/NNP
./.
Seats/NNS
currently/RB
are/VBP
quoted/VBN
at/IN
$/$
353,500/CD
bid/NN
,/,
$/$
405,000/CD
asked/VBN
./.
The/DT
record/NN
price/NN
for/IN
a/DT
full/JJ
membership/NN
on/IN
the/DT
exchange/NN
is/VBZ
$/$
550,000/CD
,/,
set/VBN
Aug./NNP
31/CD
,/,
1987/CD
./.
An/DT
associate/NN
member/NN
seat/NN
was/VBD
sold/VBN
for/IN
$/$
228,000/CD
,/,
up/IN
$/$
8,000/CD
from/IN
the/DT
previous/JJ
sale/NN
Oct./NNP
4/CD
./.
Associate/JJ
member/NN
seats/NNS
currently/RB
are/VBP
quoted/VBN
at/IN
$/$
225,000/CD
bid/NN
,/,
$/$
256,000/CD
asked/VBN
./.
The/DT
record/NN
price/NN
for/IN
associate/JJ
membership/NN
is/VBZ
$/$
275,000/CD
,/,
set/VBN
Aug./NNP
30/CD
,/,
1988/CD
./.
CAE/NNP
Industries/NNPS
Ltd./NNP
said/VBD
its/PRP$
Link/NN
Flight/NN
Simulation/NN
division/NN
was/VBD
awarded/VBN
a/DT
contract/NN
by/IN
the/DT
U.S./NNP
Army/NNP
for/IN
two/CD
helicopter/NN
simulators/NNS
,/,
which/WDT
the/DT
company/NN
valued/VBN
at/IN
as/RB
much/JJ
as/IN
37/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
31.5/CD
million/CD
CAE/NNP
said/VBD
the/DT
fixed/VBN
price/NN
for/IN
the/DT
first/JJ
of/IN
the/DT
AH-64/NN
Apache/NNP
combat/NN
mission/NN
simulators/NNS
is/VBZ
C$/$
19/CD
million/CD
./.
It/PRP
is/VBZ
scheduled/VBN
for/IN
delivery/NN
in/IN
late/JJ
1991/CD
./.
The/DT
price/NN
of/IN
the/DT
second/JJ
simulator/NN
ranges/VBZ
between/IN
C$/$
16.4/CD
million/CD
and/CC
C$/$
18/CD
million/CD
,/,
CAE/NNP
said/VBD
,/,
depending/VBG
on/IN
when/WRB
the/DT
Army/NNP
exercises/VBZ
its/PRP$
option/NN
./.
CAE/NNP
is/VBZ
a/DT
Toronto-based/JJ
maker/NN
of/IN
commercial/JJ
and/CC
military/JJ
aircraft/NN
simulators/NNS
and/CC
training/NN
equipment/NN
./.
Helionetics/NNP
Inc./NNP
said/VBD
it/PRP
agreed/VBD
to/TO
team/VB
with/IN
a/DT
unit/NN
of/IN
Minneapolis-based/JJ
Honeywell/NNP
Inc./NNP
to/TO
provide/VB
power/NN
amplifiers/NNS
for/IN
a/DT
new/JJ
military/JJ
sonar/NN
system/NN
being/NN
proposed/VBN
by/IN
Honeywell/NNP
./.
Total/JJ
value/NN
of/IN
the/DT
contract/NN
could/MD
be/VB
$/$
100/CD
million/CD
,/,
Helionetics/NNP
said/VBD
,/,
and/CC
work/VB
on/IN
the/DT
project/NN
would/MD
be/VB
about/IN
evenly/RB
divided/VBN
./.
As/IN
previously/RB
reported/VBN
,/,
Helionetics/NNP
emerged/VBD
from/IN
Chapter/NN
11/CD
bankruptcy-law/NN
protection/NN
in/IN
February/NNP
./.
This/DT
Los/NNP
Angeles/NNP
company/NN
and/CC
its/PRP$
Union/NNP
Federal/NNP
Savings/NNPS
Bank/NNP
subsidiary/NN
said/VBD
more/JJR
than/IN
99/CD
%/NN
of/IN
their/PRP$
7/CD
1\/4/CD
%/NN
convertible/JJ
subordinated/JJ
debentures/NNS
due/JJ
2011/CD
were/VBD
tendered/VBN
for/IN
conversion/NN
into/IN
UnionFed/NNP
common/JJ
stock/NN
./.
The/DT
conversion/NN
increased/VBD
total/JJ
equity/NN
capital/NN
by/IN
about/IN
$/$
38.5/CD
million/CD
to/TO
a/DT
total/NN
of/IN
$/$
156.8/CD
million/CD
./.
Union/NNP
Federal/NNP
,/,
a/DT
federally/RB
insured/JJ
savings/NNS
bank/NN
,/,
has/VBZ
$/$
2.4/CD
billion/CD
in/IN
assets/NNS
./.
David/NNP
D./NNP
Lung/NNP
was/VBD
appointed/VBN
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
of/IN
this/DT
maker/NN
of/IN
building/NN
materials/NNS
for/IN
manufactured/JJ
homes/NNS
and/CC
recreational/JJ
vehicles/NNS
./.
As/IN
president/NN
,/,
Mr./NNP
Lung/NNP
,/,
42/CD
years/NNS
old/JJ
,/,
succeeds/VBZ
his/PRP$
father/NN
,/,
Mervin/NNP
D./NNP
Lung/NNP
,/,
66/CD
,/,
who/WP
founded/VBD
the/DT
company/NN
in/IN
1959/CD
./.
Mervin/NNP
Lung/NNP
remains/VBZ
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
./.
David/NNP
Lung/NNP
has/VBZ
been/VBN
with/IN
Patrick/NNP
since/IN
1970/CD
,/,
and/CC
has/VBZ
served/VBN
as/IN
vice/NN
president/NN
for/IN
administration/NN
and/CC
purchasing/NN
since/IN
1987/CD
./.
General/NNP
Dynamics/NNPS
Services/NNP
Co./NNP
,/,
a/DT
unit/NN
of/IN
General/NNP
Dynamics/NNPS
Corp./NNP
,/,
won/VBD
a/DT
$/$
48.2/CD
million/CD
Army/NNP
contract/NN
to/TO
establish/VB
maintenance/NN
facilities/NNS
for/IN
tracked/JJ
vehicles/NNS
in/IN
Pakistan/NNP
./.
Grumman/NNP
Corp./NNP
was/VBD
given/VBN
a/DT
$/$
15/CD
million/CD
Navy/NNP
contract/NN
for/IN
aircraft-electronics/NN
improvements/NNS
./.
Hughes/NNP
Aircraft/NNP
Co./NNP
,/,
a/DT
unit/NN
of/IN
General/NNP
Motors/NNPS
Corp./NNP
,/,
got/VBD
a/DT
$/$
10.3/CD
million/CD
Air/NNP
Force/NNP
contract/NN
for/IN
airborne-radar/NN
equipment/NN
./.
Reynolds/NNP
Metals/NNPS
Co./NNP
said/VBD
third-quarter/JJ
net/JJ
income/NN
dropped/VBD
nearly/RB
10/CD
%/NN
to/TO
$/$
123.7/CD
million/CD
,/,
or/CC
$/$
2.10/CD
a/DT
share/NN
,/,
from/IN
$/$
137.2/CD
million/CD
,/,
or/CC
$/$
2.56/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
./.
The/DT
latest/JJS
earnings/NNS
reflect/VBP
an/DT
increase/NN
of/IN
about/IN
5.5/CD
million/CD
in/IN
common/JJ
shares/NNS
outstanding/JJ
./.
Revenue/NN
rose/VBD
3/CD
%/NN
to/TO
$/$
1.52/CD
billion/CD
from/IN
$/$
1.48/CD
billion/CD
./.
Reynolds/NNP
is/VBZ
the/DT
third/JJ
big/JJ
aluminum/NN
company/NN
since/IN
Friday/NNP
to/TO
report/VB
disappointing/JJ
earnings/NNS
./.
The/DT
No./NN
1/CD
domestic/JJ
aluminum/NN
producer/NN
,/,
Aluminum/NNP
Co./NNP
of/IN
America/NNP
,/,
Friday/NNP
said/VBD
its/PRP$
earnings/NNS
fell/VBD
3.2/CD
%/NN
to/TO
$/$
219/CD
million/CD
,/,
or/CC
$/$
2.46/CD
a/DT
share/NN
./.
And/CC
Alcan/NNP
Aluminium/NNP
Ltd./NNP
yesterday/NN
reported/VBD
net/JJ
income/NN
slid/VBD
30/CD
%/NN
to/TO
$/$
180/CD
million/CD
,/,
or/CC
77/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
258/CD
million/CD
,/,
or/CC
$/$
1.07/CD
a/DT
share/NN
./.
Analysts/NNS
on/IN
average/NN
had/VBD
been/VBN
expecting/VBG
about/IN
$/$
2.70/CD
for/IN
Alcoa/NNP
and/CC
$/$
1/CD
for/IN
Alcan/NNP
./.
``/``
It/PRP
's/VBZ
a/DT
good/JJ
indication/NN
that/DT
level/NN
of/IN
profitability/NN
has/VBZ
peaked/VBN
for/IN
the/DT
industry/NN
,/,
''/''
says/VBZ
Vahid/NNP
Fathi/NNP
,/,
metals/NNS
analyst/NN
with/IN
Prescott/NNP
,/,
Ball/NNP
&/CC
Turben/NNP
Inc./NNP
,/,
who/WP
had/VBD
estimated/VBN
Reynolds/NNP
would/MD
earn/VB
about/IN
$/$
2.35/CD
a/DT
share/NN
./.
The/DT
nation/NN
's/POS
No./NN
2/CD
aluminum/NN
company/NN
said/VBD
earnings/NNS
were/VBD
hurt/VBN
by/IN
lower/JJR
prices/NNS
for/IN
certain/JJ
fabricated/VBN
aluminum/NN
products/NNS
,/,
which/WDT
typically/RB
follow/VBP
price/NN
fluctuations/NNS
of/IN
primary/JJ
ingots/NNS
./.
The/DT
base/JJ
metal/NN
price/NN
has/VBZ
dropped/VBN
30.3/CD
%/NN
from/IN
a/DT
year/NN
earlier/RB
to/TO
78/CD
cents/NNS
a/DT
pound/NN
./.
Much/RB
of/IN
the/DT
price/NN
decline/NN
has/VBZ
been/VBN
blamed/VBN
on/IN
a/DT
slowing/VBG
economy/NN
and/CC
the/DT
third/JJ
quarter/NN
is/VBZ
typically/RB
the/DT
industry/NN
's/POS
slowest/JJS
period/NN
./.
But/CC
William/NNP
O./NNP
Bourke/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
,/,
said/VBD
the/DT
ingot/NN
price/NN
``/``
appears/VBZ
to/TO
have/VB
bottomed/VBN
out/RB
./.
''/''
He/PRP
said/VBD
shipments/NNS
are/VBP
continuing/VBG
at/IN
a/DT
``/``
healthy/JJ
''/''
pace/NN
and/CC
the/DT
company/NN
has/VBZ
no/DT
excess/JJ
inventory/NN
./.
Aluminum/NN
shipments/NNS
of/IN
329,600/CD
metric/JJ
tons/NNS
were/VBD
nearly/RB
equal/JJ
to/TO
the/DT
year-earlier/JJ
period/NN
,/,
the/DT
company/NN
said/VBD
./.
Nevertheless/RB
,/,
the/DT
company/NN
said/VBD
that/IN
in/IN
the/DT
latest/JJS
quarter/NN
there/RB
were/VBD
increased/VBN
material/NN
and/CC
labor/NN
costs/NNS
,/,
including/VBG
a/DT
new/JJ
employee/NN
profit-sharing/NN
plan/NN
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Reynolds/NNP
closed/VBD
at/IN
$/$
55.375/CD
,/,
up/RB
$/$
1.25/CD
./.
No/DT
strikeout/NN
,/,
but/CC
certainly/RB
no/DT
home/NN
run/NN
./.
That/DT
's/VBZ
how/WRB
the/DT
stock-picking/NN
game/NN
is/VBZ
shaping/VBG
up/RB
for/IN
the/DT
months/NNS
ahead/RB
,/,
according/VBG
to/TO
money/NN
managers/NNS
and/CC
a/DT
few/JJ
brokers/NNS
./.
Yesterday/NN
's/POS
88-point/JJ
recovery/NN
from/IN
Friday/NNP
's/POS
megadrop/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
industrials/NNS
had/VBD
many/JJ
brokerage/NN
houses/NNS
proclaiming/VBG
that/IN
stocks/NNS
are/VBP
a/DT
good/JJ
bargain/NN
again/RB
./.
But/CC
quite/RB
a/DT
few/JJ
money/NN
managers/NNS
are/VBP
n't/RB
buying/VBG
it/PRP
./.
Weakening/VBG
corporate/JJ
earnings/NNS
,/,
they/PRP
say/VBP
,/,
are/VBP
no/DT
prescription/NN
for/IN
a/DT
bull/NN
market/NN
./.
``/``
The/DT
stock/NN
market/NN
ai/VBP
n't/RB
going/VBG
to/TO
do/VB
much/RB
of/IN
anything/NN
''/''
for/IN
a/DT
while/NN
,/,
says/VBZ
John/NNP
Neff/NNP
of/IN
Wellington/NNP
Management/NNP
,/,
who/WP
runs/VBZ
the/DT
$/$
8.3/CD
billion/CD
Windsor/NNP
Fund/NNP
./.
He/PRP
suspects/VBZ
that/IN
Friday/NNP
's/POS
market/NN
decline/NN
may/MD
have/VB
a/DT
second/JJ
leg/NN
,/,
perhaps/RB
a/DT
10/CD
%/NN
to/TO
15/CD
%/NN
drop/NN
later/RB
on/RB
./.
Mr./NNP
Neff/NNP
says/VBZ
the/DT
stock/NN
market/NN
has/VBZ
lost/VBN
some/DT
powerful/JJ
driving/NN
forces/NNS
,/,
namely/RB
earnings/NNS
growth/NN
and/CC
the/DT
``/``
LBO/NNP
sweepstakes/NNS
''/''
--/:
buy-out/NN
fever/NN
that/IN
induced/VBN
investors/NNS
to/TO
bid/VB
up/RP
whole/RP
groups/NNS
of/IN
stocks/NNS
,/,
such/JJ
as/IN
media/NNS
and/CC
airlines/NNS
./.
After/IN
sitting/VBG
with/IN
20/CD
%/NN
of/IN
his/PRP$
fund/NN
in/IN
cash/NN
before/IN
Friday/NNP
's/POS
sell-off/NN
,/,
Mr./NNP
Neff/NNP
says/VBZ
he/PRP
bought/VBD
``/``
a/DT
narrow/JJ
list/NN
of/IN
stocks/NNS
''/''
yesterday/NN
./.
With/IN
flat/JJ
corporate/JJ
profits/NNS
on/IN
the/DT
horizon/NN
for/IN
1990/CD
,/,
money/NN
managers/NNS
say/VBP
price-earnings/NNS
multiples/NNS
that/WDT
look/VBP
cheap/JJ
today/NN
might/MD
go/VB
on/IN
being/VBG
cheap/JJ
for/IN
a/DT
long/JJ
time/NN
./.
``/``
This/DT
is/VBZ
not/RB
a/DT
grossly/RB
overvalued/VBN
market/NN
,/,
but/CC
it/PRP
's/VBZ
not/RB
cheap/JJ
either/RB
,/,
''/''
says/VBZ
George/NNP
Collins/NNP
,/,
president/NN
of/IN
the/DT
mutual/JJ
fund/NN
company/NN
T./NNP
Rowe/NNP
Price/NNP
Associates/NNPS
in/IN
Baltimore/NNP
./.
According/VBG
to/TO
Institutional/NNP
Brokers/NNPS
Estimate/NNP
System/NNP
,/,
Wall/NNP
Street/NNP
market/NN
strategists/NNS
see/VBP
only/RB
a/DT
2.4/CD
%/NN
jump/NN
in/IN
company/NN
profits/NNS
in/IN
1990/CD
--/:
unlike/IN
in/IN
1987/CD
,/,
when/WRB
profits/NNS
a/DT
year/NN
out/RB
looked/VBN
good/JJ
they/PRP
did/VBD
soar/VB
36/CD
%/NN
in/IN
1988/CD
Bulls/NNS
say/VBP
the/DT
market/NN
is/VBZ
an/DT
incredible/JJ
bargain/NN
,/,
priced/VBN
at/IN
only/RB
about/IN
12/CD
times/NNS
estimated/VBN
1989/CD
earnings/NNS
for/IN
stocks/NNS
in/IN
the/DT
Standard/NNP
&/CC
Poor/NNP
's/POS
500/CD
index/NN
./.
Before/IN
the/DT
1987/CD
crash/NN
,/,
the/DT
P\/E/NNP
was/VBD
more/JJR
than/IN
20/CD
./.
The/DT
common/JJ
view/NN
,/,
says/VBZ
Abby/NNP
Cohen/NNP
,/,
strategist/NN
for/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
,/,
is/VBZ
that/IN
there/EX
will/MD
be/VB
``/``
mild/JJ
economic/JJ
growth/NN
,/,
modest/JJ
profit/NN
expansion/NN
,/,
and/CC
things/NNS
are/VBP
going/VBG
to/TO
be/VB
hunky-dory/JJ
./.
Our/PRP$
view/NN
is/VBZ
that/IN
we/PRP
may/MD
see/VB
a/DT
profit/NN
decline/NN
./.
''/''
Some/DT
think/VBP
investors/NNS
should/MD
sell/VB
into/IN
rallies/NNS
./.
The/DT
market/NN
``/``
is/VBZ
going/VBG
to/TO
wind/VB
down/RB
,/,
''/''
says/VBZ
Gerald/NNP
W./NNP
Perritt/NNP
,/,
a/DT
Chicago/NNP
money/NN
manager/NN
./.
``/``
Things/NNS
are/VBP
a/DT
little/RB
less/RBR
overpriced/JJ
''/''
after/IN
Friday/NNP
's/POS
jolt/NN
in/IN
the/DT
market/NN
./.
He/PRP
expects/VBZ
stocks/NNS
to/TO
decline/VB
an/DT
additional/JJ
5/CD
%/NN
to/TO
30/CD
%/NN
,/,
with/IN
the/DT
Dow/NNP
perhaps/RB
bottoming/VBG
out/RB
between/IN
2000/CD
and/CC
2100/CD
``/``
between/IN
now/RB
and/CC
June/NNP
./.
''/''
After/IN
Friday/NNP
's/POS
decline/NN
,/,
Mr./NNP
Perritt/NNP
's/POS
firm/NN
ran/VBD
statistical/JJ
tests/NNS
on/IN
100/CD
high-quality/NN
stocks/NNS
,/,
using/VBG
old-fashioned/JJ
value/NN
criteria/NNS
devised/VBN
by/IN
Benjamin/NNP
Graham/NNP
,/,
an/DT
analyst/NN
and/CC
author/NN
in/IN
the/DT
1930s/NNS
and/CC
1940s/NNS
who/WP
is/VBZ
widely/RB
considered/JJ
to/TO
be/VB
the/DT
father/NN
of/IN
modern/JJ
securities/NNS
analysis/NN
./.
He/PRP
found/VBD
85/CD
still/RB
overvalued/VBN
and/CC
15/CD
fairly/RB
valued/VBN
./.
Nicholas/NNP
Parks/NNP
,/,
a/DT
New/NNP
York/NNP
money/NN
manager/NN
,/,
expects/VBZ
the/DT
market/NN
to/TO
decline/VB
about/IN
15/CD
%/NN
./.
``/``
I/PRP
've/VBP
been/VBN
two-thirds/NNS
in/IN
cash/NN
since/IN
July/NNP
,/,
and/CC
I/PRP
continue/VBP
to/TO
think/VB
that/IN
having/VBG
a/DT
defensive/JJ
position/NN
is/VBZ
appropriate/JJ
,/,
''/''
he/PRP
says/VBZ
./.
Companies/NNS
that/WDT
piled/VBD
on/IN
debt/NN
in/IN
leveraged/JJ
buy-outs/NNS
during/IN
the/DT
past/JJ
two/CD
years/NNS
``/``
will/MD
continue/VB
to/TO
surface/VB
as/IN
business/NN
problems/NNS
./.
''/''
``/``
Generalizations/NNS
about/IN
value/NN
are/VBP
n't/RB
useful/JJ
,/,
''/''
says/VBZ
New/NNP
York/NNP
money/NN
manager/NN
John/NNP
LeFrere/NNP
of/IN
Delta/NNP
Capital/NNP
Management/NNP
./.
For/IN
instance/NN
,/,
he/PRP
says/VBZ
,/,
International/NNP
Business/NNP
Machines/NNPS
and/CC
Unisys/NNP
might/MD
look/VB
cheap/JJ
,/,
but/CC
investors/NNS
might/MD
continue/VB
to/TO
do/VB
better/RB
with/IN
stocks/NNS
like/IN
Walt/NNP
Disney/NNP
,/,
Procter/NNP
&/CC
Gamble/NNP
and/CC
Coca-Cola/NNP
,/,
strong/JJ
performers/NNS
in/IN
recent/JJ
years/NNS
./.
Money/NN
manager/NN
Robert/NNP
Ross/NNP
,/,
head/NN
of/IN
Duncan/NNP
Ross/NNP
Associates/NNPS
Ltd./NNP
in/IN
Vancouver/NNP
,/,
British/NNP
Columbia/NNP
,/,
says/VBZ
stocks/NNS
would/MD
have/VB
to/TO
fall/VB
15/CD
%/NN
to/TO
20/CD
%/NN
before/IN
they/PRP
are/VBP
competitive/JJ
with/IN
less/RBR
risky/JJ
investment/NN
alternatives/NNS
./.
Fredric/NNP
Russell/NNP
,/,
a/DT
money/NN
manager/NN
in/IN
Tulsa/NNP
,/,
Okla./NNP
,/,
says/VBZ
Friday/NNP
's/POS
cave-in/NN
``/``
is/VBZ
going/VBG
to/TO
have/VB
more/JJR
of/IN
a/DT
permanent/JJ
impact/NN
on/IN
the/DT
psyche/NN
of/IN
many/JJ
investors/NNS
than/IN
Wall/NNP
Street/NNP
would/MD
want/VB
to/TO
admit/VB
./.
''/''
There/EX
are/VBP
still/RB
bulls/NNS
out/IN
there/RB
./.
``/``
I/PRP
still/RB
think/VBP
we/PRP
will/MD
have/VB
a/DT
3000/CD
Dow/NNP
,/,
whether/IN
it/PRP
's/VBZ
six/CD
months/NNS
or/CC
12/CD
months/NNS
from/IN
now/RB
I/PRP
do/VBP
n't/RB
know/VB
,/,
''/''
says/VBZ
David/NNP
Dreman/NNP
,/,
managing/NN
partner/NN
of/IN
Dreman/NNP
Value/NNP
Management/NNP
in/IN
New/NNP
York/NNP
./.
``/``
We/PRP
're/VBP
doing/VBG
a/DT
little/JJ
buying/NN
''/''
in/IN
some/DT
stocks/NNS
``/``
that/WDT
have/VBP
really/RB
been/VBN
smashed/VBN
down/RB
./.
''/''
Many/JJ
brokerage/NN
house/NN
officials/NNS
also/RB
are/VBP
optimistic/JJ
./.
Yesterday/NN
,/,
Goldman/NNP
Sachs/NNP
,/,
Merrill/NNP
Lynch/NNP
and/CC
Dean/NNP
Witter/NNP
all/DT
increased/VBD
the/DT
proportion/NN
of/IN
assets/NNS
they/PRP
recommend/VBP
investors/NNS
commit/VBP
to/TO
stocks/NNS
./.
Dean/NNP
Witter/NNP
now/RB
recommends/VBZ
85/CD
%/NN
,/,
Goldman/NNP
65/CD
%/NN
and/CC
Merrill/NNP
Lynch/NNP
50/CD
%/NN
./.
Some/DT
investors/NNS
say/VBP
Friday/NNP
's/POS
sell-off/NN
was/VBD
a/DT
good/JJ
thing/NN
,/,
because/IN
it/PRP
deflated/VBD
a/DT
lot/NN
of/IN
crazy/JJ
takeover/NN
speculation/NN
./.
``/``
It/PRP
was/VBD
a/DT
healthy/JJ
cleansing/NN
,/,
''/''
says/VBZ
Michael/NNP
Holland/NNP
,/,
who/WP
runs/VBZ
Salomon/NNP
Brothers/NNPS
Asset/NNP
Management/NNP
in/IN
New/NNP
York/NNP
./.
From/IN
here/RB
out/RB
,/,
these/DT
investors/NNS
see/VBP
a/DT
return/NN
to/TO
old-fashioned/JJ
investing/NN
,/,
based/VBN
on/IN
a/DT
company/NN
's/POS
ability/NN
to/TO
show/VB
profit/NN
growth/NN
./.
``/``
The/DT
fundamentals/NNS
are/VBP
pretty/RB
strong/JJ
,/,
''/''
Mr./NNP
Dreman/NNP
says/VBZ
./.
``/``
I/PRP
do/VBP
n't/RB
see/VB
this/DT
as/IN
a/DT
bear/NN
market/NN
at/IN
all/DT
./.
It/PRP
's/VBZ
a/DT
recognition/NN
that/IN
there/EX
was/VBD
much/RB
too/RB
much/JJ
fluff/NN
in/IN
the/DT
LBO/NNP
market/NN
./.
''/''
Friday/NNP
's/POS
big/JJ
fall/NN
was/VBD
``/``
just/RB
a/DT
blunder/NN
by/IN
the/DT
stock/NN
market/NN
,/,
''/''
says/VBZ
John/NNP
Connolly/NNP
,/,
chief/JJ
strategist/NN
for/IN
Dean/NNP
Witter/NNP
./.
``/``
It/PRP
was/VBD
an/DT
overreaction/NN
to/TO
an/DT
event/NN
the/DT
failure/NN
of/IN
a/DT
management/NN
and/CC
union/NN
group/NN
to/TO
get/VB
bank/NN
financing/NN
for/IN
a/DT
takeover/NN
of/IN
UAL/NNP
that/WDT
does/VBZ
n't/RB
mean/VB
that/IN
much/JJ
to/TO
lots/NNS
of/IN
stocks/NNS
./.
''/''
Many/JJ
investors/NNS
have/VBP
nagging/JJ
worries/NNS
,/,
however/RB
./.
Newspapers/NNS
are/VBP
full/JJ
of/IN
headlines/NNS
about/IN
companies/NNS
defaulting/VBG
on/IN
their/PRP$
debts/NNS
and/CC
banks/NNS
writing/VBG
off/RP
real/JJ
estate/NN
loans/NNS
./.
That/DT
hurts/VBZ
investors/NNS
'/POS
confidence/NN
in/IN
the/DT
economy/NN
and/CC
stocks/NNS
./.
Not/RB
even/RB
all/PDT
the/DT
brokerage/NN
firms/NNS
see/VBP
clear/JJ
sailing/NN
ahead/RB
./.
``/``
Disappointing/JJ
profits/NNS
are/VBP
likely/JJ
to/TO
get/VB
worse/RBR
in/IN
the/DT
next/JJ
two/CD
quarters/NNS
,/,
''/''
says/VBZ
Mary/NNP
Farrell/NNP
,/,
a/DT
market/NN
strategist/NN
at/IN
PaineWebber/NNP
./.
She/PRP
thinks/VBZ
the/DT
market/NN
could/MD
drop/VB
about/IN
10/CD
%/NN
in/IN
the/DT
next/JJ
few/JJ
months/NNS
,/,
then/RB
recover/VBP
and/CC
go/VBP
higher/JJR
./.
Companies/NNS
with/IN
steady/JJ
earnings/NNS
growth/NN
could/MD
do/VB
well/RB
,/,
she/PRP
says/VBZ
,/,
while/IN
others/NNS
with/IN
high/JJ
debt/NN
or/CC
poor/JJ
earnings/NNS
could/MD
see/VB
their/PRP$
shares/NNS
decline/VBP
far/RB
more/JJR
than/IN
10/CD
%/NN
./.
The/DT
turmoil/NN
on/IN
Wall/NNP
Street/NNP
may/MD
benefit/VB
some/DT
retailers/NNS
attempting/VBG
to/TO
lead/VB
leveraged/JJ
buy-outs/NNS
of/IN
their/PRP$
specialty/NN
and/CC
department-store/NN
chains/NNS
,/,
investment/NN
bankers/NNS
and/CC
retailers/NNS
said/VBD
./.
Managers/NNS
at/IN
five/CD
chains/NNS
have/VBP
said/VBN
in/IN
recent/JJ
weeks/NNS
that/IN
they/PRP
intend/VBP
to/TO
bid/VB
for/IN
their/PRP$
companies/NNS
./.
The/DT
chains/NNS
include/VBP
Bloomingdale/NNP
's/POS
,/,
owned/VBN
by/IN
Campeau/NNP
Corp./NNP
,/,
Toronto/NNP
;/:
Saks/NNP
Fifth/NNP
Avenue/NNP
and/CC
Marshall/NNP
Field/NNP
's/POS
,/,
owned/VBN
by/IN
B.A.T/NNP
Industries/NNPS
PLC/NNP
,/,
London/NNP
;/:
and/CC
B./NNP
Altman/NNP
&/CC
Co./NNP
and/CC
Sakowitz/NNP
Inc./NNP
,/,
owned/VBN
by/IN
Hooker/NNP
Corp./NNP
,/,
which/WDT
is/VBZ
now/RB
being/VBG
managed/VBN
by/IN
a/DT
court-appointed/JJ
provisional/JJ
liquidator/NN
./.
Hooker/NNP
is/VBZ
based/VBN
in/IN
Sydney/NNP
,/,
Australia/NNP
./.
The/DT
combination/NN
of/IN
so/RB
many/JJ
chains/NNS
available/JJ
for/IN
sale/NN
,/,
the/DT
recent/JJ
failures/NNS
of/IN
such/JJ
retailing/NN
LBO/NN
's/POS
as/RB
Miller/NNP
&/CC
Rhoads/NNP
Inc./NNP
and/CC
declining/VBG
investor/NN
confidence/NN
will/MD
drive/VB
down/RP
prices/NNS
,/,
retailing/NN
observers/NNS
said/VBD
./.
``/``
The/DT
pricing/NN
will/MD
become/VB
more/RBR
realistic/JJ
,/,
which/WDT
should/MD
help/VB
management/NN
,/,
''/''
said/VBD
Bruce/NNP
Rosenthal/NNP
,/,
a/DT
New/NNP
York/NNP
investment/NN
banker/NN
with/IN
Nathan/NNP
S./NNP
Jonas/NNP
&/CC
Co/NNP
./.
``/``
Investors/NNS
are/VBP
n't/RB
going/VBG
to/TO
be/VB
throwing/VBG
money/NN
at/IN
any/DT
of/IN
the/DT
proposed/VBN
LBOs/NNS
,/,
but/CC
doing/VBG
deals/NNS
on/IN
the/DT
basis/NN
of/IN
ridiculous/JJ
assumptions/NNS
never/RB
made/VBN
sense/NN
,/,
either/RB
./.
''/''
Earlier/RB
this/DT
year/NN
,/,
bankers/NNS
and/CC
other/JJ
investors/NNS
were/VBD
willing/JJ
to/TO
provide/VB
financing/NN
because/IN
they/PRP
assumed/VBD
there/EX
would/MD
be/VB
major/JJ
gains/NNS
in/IN
both/DT
profitability/NN
and/CC
sales/NNS
,/,
Mr./NNP
Rosenthal/NNP
added/VBD
./.
Those/DT
days/NNS
are/VBP
over/RB
now/RB
,/,
he/PRP
believes/VBZ
./.
``/``
Competition/NN
from/IN
third/JJ
parties/NNS
who/WP
have/VBP
cash/NN
and/CC
are/VBP
prepared/JJ
to/TO
buy/VB
has/VBZ
always/RB
existed/VBN
and/CC
will/MD
continue/VB
,/,
''/''
added/VBD
Mr./NNP
Rosenthal/NNP
./.
``/``
But/CC
when/WRB
prices/NNS
were/VBD
crazy/JJ
,/,
it/PRP
was/VBD
even/RB
harder/JJR
to/TO
do/VB
an/DT
LBO/NN
./.
Bankers/NNS
believed/VBD
in/IN
the/DT
greater-fool/JJR
theory/NN
that/WDT
says/VBZ
somebody/NN
else/JJ
is/VBZ
always/RB
willing/JJ
to/TO
pay/VB
more/RBR
./.
This/DT
is/VBZ
no/DT
longer/RB
true/JJ
today/NN
./.
''/''
At/IN
Saks/NNP
Fifth/NNP
Avenue/NNP
,/,
Paul/NNP
Leblang/NNP
,/,
senior/JJ
vice/NN
president/NN
,/,
marketing/NN
,/,
agreed/VBD
that/IN
lower/JJR
prices/NNS
will/MD
help/VB
his/PRP$
management/NN
team/NN
in/IN
their/PRP$
proposed/VBN
LBO/NN
./.
``/``
Having/VBG
to/TO
take/VB
on/IN
less/JJR
debt/NN
would/MD
certainly/RB
be/VB
an/DT
advantage/NN
,/,
''/''
said/VBD
Mr./NNP
Leblang/NNP
./.
``/``
It/PRP
would/MD
also/RB
help/VB
us/PRP
in/IN
our/PRP$
search/NN
for/IN
equity/NN
partners/NNS
./.
To/TO
make/VB
an/DT
LBO/NN
work/NN
,/,
now/RB
we/PRP
are/VBP
going/VBG
to/TO
need/VB
more/RBR
than/IN
just/RB
junk/NN
bonds/NNS
./.
''/''
None/NN
believe/VBP
the/DT
proposed/VBN
management/NN
LBOs/NNS
will/MD
be/VB
easy/JJ
to/TO
complete/VB
,/,
especially/RB
at/IN
B./NNP
Altman/NNP
&/CC
Co./NNP
,/,
which/WDT
is/VBZ
under/IN
Chapter/NN
11/CD
bankruptcy/NN
protection/NN
./.
Not/RB
only/RB
could/MD
the/DT
Wall/NNP
Street/NNP
gyrations/NNS
damp/VBP
Christmas/NNP
sales/NNS
if/IN
consumers/NNS
lose/VBP
confidence/NN
in/IN
the/DT
economy/NN
,/,
but/CC
potential/JJ
junk-bond/NN
buyers/NNS
are/VBP
sure/JJ
to/TO
demand/VB
even/RB
stronger/JJR
covenants/NNS
and/CC
greater/JJR
management/NN
equity/NN
participation/NN
./.
Further/RB
,/,
many/JJ
institutions/NNS
today/NN
holding/VBG
troubled/JJ
retailers/NNS
'/POS
debt/NN
securities/NNS
will/MD
be/VB
reticent/JJ
to/TO
consider/VB
additional/JJ
retailing/NN
investments/NNS
./.
``/``
It/PRP
's/VBZ
called/VBN
bad/JJ
money/NN
driving/VBG
out/RP
good/JJ
money/NN
,/,
''/''
said/VBD
one/CD
retailing/NN
observer/NN
./.
``/``
Institutions/NNS
that/WDT
usually/RB
buy/VBP
retail/JJ
paper/NN
have/VBP
to/TO
be/VB
more/RBR
concerned/JJ
./.
''/''
However/RB
,/,
the/DT
lower/JJR
prices/NNS
these/DT
retail/JJ
chains/NNS
are/VBP
now/RB
expected/VBN
to/TO
bring/VB
should/MD
make/VB
it/PRP
easier/RB
for/IN
managers/NNS
to/TO
raise/VB
the/DT
necessary/JJ
capital/NN
and/CC
pay/VB
back/RB
the/DT
resulting/VBG
debt/NN
./.
In/IN
addition/NN
,/,
the/DT
fall/NN
selling/VBG
season/NN
has/VBZ
generally/RB
been/VBN
a/DT
good/JJ
one/NN
,/,
especially/RB
for/IN
those/DT
retailers/NNS
dependent/JJ
on/IN
apparel/NN
sales/NNS
for/IN
the/DT
majority/NN
of/IN
their/PRP$
revenues/NNS
./.
``/``
What/WP
's/VBZ
encouraging/VBG
about/IN
this/DT
is/VBZ
that/IN
retail/JJ
chains/NNS
will/MD
be/VB
sold/VBN
on/IN
the/DT
basis/NN
of/IN
their/PRP$
sales/NNS
and/CC
earnings/NNS
,/,
not/RB
liquidation/NN
values/NNS
,/,
''/''
said/VBD
Joseph/NNP
E./NNP
Brooks/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
of/IN
Ann/NNP
Taylor/NNP
Inc./NNP
,/,
a/DT
specialty/NN
chain/NN
./.
``/``
Retailers/NNS
who/WP
had/VBD
good/JJ
track/NN
records/NNS
of/IN
producing/VBG
profits/NNS
will/MD
have/VB
a/DT
better/JJR
chance/NN
to/TO
buy/VB
back/RB
their/PRP$
companies/NNS
./.
''/''
Still/RB
,/,
most/JJS
retailing/NN
observers/NNS
expect/VBP
that/IN
all/PDT
the/DT
proposed/VBN
retailing/NN
LBOs/NNS
will/MD
depend/VB
partly/RB
on/IN
the/DT
sale/NN
of/IN
junk/NN
bonds/NNS
,/,
a/DT
market/NN
already/RB
in/IN
tumult/NN
,/,
in/IN
part/NN
because/IN
of/IN
concerns/NNS
associated/VBN
with/IN
bonds/NNS
issued/VBN
by/IN
the/DT
Federated/NNP
and/CC
Allied/NNP
units/NNS
of/IN
Campeau/NNP
./.
``/``
Prices/NNS
for/IN
retail/JJ
chains/NNS
are/VBP
lower/JJR
today/NN
than/IN
they/PRP
were/VBD
last/JJ
week/NN
,/,
which/WDT
will/MD
help/VB
management/NN
,/,
''/''
said/VBD
Gilbert/NNP
Harrison/NNP
,/,
chairman/NN
of/IN
Financo/NNP
Inc./NNP
,/,
an/DT
investment-banking/NN
firm/NN
specializing/VBG
in/IN
retailing/NN
acquisitions/NNS
./.
``/``
But/CC
the/DT
hurdle/NN
of/IN
financing/NN
still/RB
has/VBZ
to/TO
be/VB
resolved/VBN
./.
Potential/JJ
bondholders/NNS
will/MD
either/RB
look/VBP
for/IN
greater/JJR
equity/NN
participation/NN
on/IN
behalf/NN
of/IN
management/NN
,/,
or/CC
insist/VBP
the/DT
equity/NN
component/NN
of/IN
the/DT
deals/NNS
be/VB
substantially/RB
greater/JJR
than/IN
in/IN
the/DT
past/NN
./.
''/''
Sony/NNP
Corp./NNP
won/VBD
a/DT
pretrial/JJ
order/NN
blocking/VBG
U.S./NNP
sales/NNS
of/IN
Justin/NNP
Products/NNPS
Inc./NNP
's/POS
``/``
My/PRP$
Own/JJ
''/''
line/NN
of/IN
portable/JJ
audio/JJ
players/NNS
for/IN
children/NNS
./.
Judge/NNP
John/NNP
E./NNP
Sprizzo/NNP
issued/VBD
the/DT
order/NN
in/IN
Manhattan/NNP
federal/JJ
court/NN
,/,
where/WRB
Sony/NNP
has/VBZ
accused/VBN
the/DT
tiny/JJ
company/NN
of/IN
illegally/RB
knocking/VBG
off/IN
the/DT
``/``
My/PRP$
First/JJ
Sony/NNP
''/''
line/NN
./.
The/DT
judge/NN
held/VBD
that/IN
the/DT
combination/NN
of/IN
colors/NNS
used/VBN
for/IN
the/DT
Sony/NNP
products/NNS
is/VBZ
distinctive/JJ
and/CC
subject/NN
to/TO
protection/NN
under/IN
New/NNP
York/NNP
state/NN
law/NN
,/,
rather/RB
than/IN
federal/JJ
law/NN
./.
The/DT
legal/JJ
fight/NN
was/VBD
the/DT
subject/NN
of/IN
a/DT
Wall/NNP
Street/NNP
Journal/NNP
story/NN
yesterday/NN
./.
Justin/NNP
's/POS
attorney/NN
,/,
Charles/NNP
E./NNP
Baxley/NNP
,/,
said/VBD
Justin/NNP
would/MD
ask/VB
an/DT
appeals/NNS
court/NN
to/TO
set/VB
aside/RB
the/DT
order/NN
temporarily/RB
,/,
pending/VBG
an/DT
expedited/VBN
appeal/NN
./.
He/PRP
also/RB
repeated/VBD
Justin/NNP
's/POS
denial/NN
of/IN
Sony/NNP
's/POS
charges/NNS
./.
``/``
Their/PRP$
likelihood/NN
of/IN
reversing/VBG
us/PRP
is/VBZ
very/RB
slim/JJ
,/,
''/''
said/VBD
Lewis/NNP
H./NNP
Eslinger/NNP
,/,
Sony/NNP
's/POS
attorney/NN
,/,
who/WP
said/VBD
he/PRP
doubts/VBZ
Justin/NNP
will/MD
go/VB
ahead/RB
with/IN
a/DT
trial/NN
./.
CONTINENTAL/NNP
MORTGAGE/NNP
&/CC
EQUITY/NNP
TRUST/NNP
said/VBD
it/PRP
will/MD
resume/VB
dividend/NN
payments/NNS
with/IN
a/DT
10-cent-a-share/JJ
payout/NN
on/IN
Nov./NNP
6/CD
to/TO
shares/NNS
of/IN
record/NN
Oct./NNP
25/CD
./.
The/DT
Dallas/NNP
real/JJ
estate/NN
investment/NN
trust/NN
last/RB
paid/VBD
a/DT
dividend/NN
on/IN
Dec./NNP
31/CD
,/,
1987/CD
,/,
when/WRB
shareholders/NNS
received/VBD
$/$
1/CD
a/DT
share/NN
./.
Despite/IN
continuing/VBG
troubles/NNS
with/IN
problem/NN
assets/NNS
and/CC
nonperforming/VBG
loans/NNS
,/,
the/DT
trust/NN
said/VBD
it/PRP
expects/VBZ
to/TO
be/VB
able/JJ
to/TO
maintain/VB
or/CC
increase/VB
the/DT
rate/NN
of/IN
distributions/NNS
because/IN
of/IN
operations/NNS
of/IN
joint-venture/NN
properties/NNS
./.
A/DT
federal/JJ
appeals/NNS
court/NN
struck/VBD
down/IN
a/DT
natural-gas/NN
regulation/NN
that/WDT
had/VBD
prevented/VBN
pipeline/NN
companies/NNS
from/IN
passing/VBG
to/TO
customers/NNS
part/NN
of/IN
$/$
1/CD
billion/CD
in/IN
costs/NNS
from/IN
controversial/JJ
``/``
take-or-pay/JJ
''/''
contracts/NNS
./.
The/DT
court/NN
,/,
in/IN
a/DT
3-0/CD
ruling/NN
,/,
threw/VBD
out/IN
a/DT
deadline/NN
set/VBN
by/IN
the/DT
Federal/NNP
Energy/NNP
Regulatory/NNP
Commission/NNP
for/IN
settling/VBG
old/JJ
contract/NN
disputes/NNS
over/IN
gas/NN
that/IN
the/DT
pipeline/NN
companies/NNS
reserved/VBN
but/CC
did/VBD
n't/RB
use/VB
./.
FERC/NNP
's/POS
regulation/NN
had/VBD
given/VBN
pipelines/NNS
until/IN
March/NNP
31/CD
,/,
1989/CD
,/,
to/TO
pass/VB
on/IN
to/TO
customers/NNS
as/RB
much/RB
as/IN
50/CD
%/NN
of/IN
the/DT
costs/NNS
of/IN
buying/VBG
out/RP
their/PRP$
broken/JJ
contracts/NNS
,/,
which/WDT
were/VBD
made/VBN
with/IN
producers/NNS
when/WRB
gas/NN
prices/NNS
were/VBD
high/JJ
and/CC
supplies/NNS
short/JJ
./.
A/DT
majority/NN
of/IN
old/JJ
contracts/NNS
were/VBD
renegotiated/VBN
by/IN
the/DT
deadline/NN
and/CC
settled/VBD
at/IN
steep/JJ
discounts/NNS
./.
But/CC
pipeline/NN
companies/NNS
estimate/VBP
they/PRP
still/RB
face/VBP
$/$
2.4/CD
billion/CD
in/IN
liabilities/NNS
from/IN
unresolved/JJ
disputes/NNS
,/,
including/VBG
$/$
1/CD
billion/CD
they/PRP
fear/VBP
they/PRP
wo/MD
n't/RB
be/VB
able/JJ
to/TO
pass/VB
on/IN
to/TO
customers/NNS
./.
According/VBG
to/TO
industry/NN
lawyers/NNS
,/,
the/DT
ruling/NN
gives/VBZ
pipeline/NN
companies/NNS
an/DT
important/JJ
second/JJ
chance/NN
to/TO
resolve/VB
remaining/VBG
disputes/NNS
and/CC
take/VB
advantage/NN
of/IN
the/DT
cost-sharing/NN
mechanism/NN
./.
The/DT
court/NN
left/VBD
open/RB
whether/IN
FERC/NNP
could/MD
reimpose/VB
a/DT
new/JJ
deadline/NN
later/RB
./.
The/DT
court/NN
,/,
agreeing/VBG
with/IN
pipeline/NN
companies/NNS
,/,
found/VBD
the/DT
March/NNP
31/CD
deadline/NN
was/VBD
``/``
arbitrary/JJ
and/CC
capricious/JJ
''/''
and/CC
``/``
highly/RB
prejudicial/JJ
to/TO
the/DT
bargaining/NN
power/NN
of/IN
pipelines/NNS
''/''
that/WDT
were/VBD
forced/VBN
to/TO
negotiate/VB
settlement/NN
of/IN
the/DT
old/JJ
take-or-pay/JJ
contracts/NNS
to/TO
meet/VB
the/DT
deadline/NN
./.
A/DT
report/NN
last/JJ
month/NN
by/IN
the/DT
Interstate/NNP
Natural/NNP
Gas/NNP
Association/NNP
of/IN
America/NNP
found/VBD
that/IN
pipelines/NNS
'/POS
settlement/NN
costs/NNS
had/VBD
jumped/VBN
in/IN
the/DT
three/CD
months/NNS
before/IN
the/DT
deadline/NN
to/TO
39/CD
cents/NNS
on/IN
the/DT
dollar/NN
,/,
from/IN
22/CD
cents/NNS
on/IN
the/DT
dollar/NN
in/IN
1988/CD
./.
The/DT
court/NN
ordered/VBD
FERC/NNP
to/TO
justify/VB
within/IN
60/CD
days/NNS
not/RB
only/RB
its/PRP$
cost-sharing/NN
deadline/NN
,/,
but/CC
other/JJ
major/JJ
elements/NNS
of/IN
its/PRP$
proposed/VBN
regulation/NN
for/IN
introducing/VBG
more/JJR
competition/NN
into/IN
natural-gas/NN
transportation/NN
./.
The/DT
court/NN
also/RB
questioned/VBD
a/DT
crediting/NN
mechanism/NN
that/WDT
could/MD
be/VB
used/VBN
to/TO
resolve/VB
take-or-pay/JJ
liabilities/NNS
./.
The/DT
complex/JJ
regulation/NN
,/,
known/VBN
in/IN
the/DT
industry/NN
as/IN
Order/NN
500/CD
,/,
has/VBZ
been/VBN
hotly/RB
contested/JJ
by/IN
all/DT
sides/NNS
,/,
including/VBG
natural-gas/NN
producers/NNS
,/,
pipelines/NNS
,/,
local/JJ
distribution/NN
companies/NNS
and/CC
consumers/NNS
./.
The/DT
court/NN
's/POS
decision/NN
would/MD
allow/VB
FERC/NNP
to/TO
change/VB
some/DT
of/IN
its/PRP$
provisions/NNS
,/,
but/CC
ensures/VBZ
it/PRP
will/MD
be/VB
reviewed/VBN
again/RB
quickly/RB
by/IN
the/DT
court/NN
./.
MEDUSA/NNP
Corp./NNP
said/VBD
it/PRP
voluntarily/RB
prepaid/VB
$/$
7/CD
million/CD
on/IN
its/PRP$
original/JJ
$/$
75/CD
million/CD
term/NN
loan/NN
,/,
bringing/VBG
the/DT
total/JJ
debt/NN
reduction/NN
for/IN
the/DT
year/NN
to/TO
$/$
18/CD
million/CD
./.
After/IN
the/DT
payment/NN
,/,
the/DT
Cleveland/NNP
company/NN
owes/VBZ
$/$
57/CD
million/CD
on/IN
the/DT
loan/NN
./.
The/DT
cement/NN
producer/NN
said/VBD
the/DT
payment/NN
was/VBD
made/VBN
from/IN
excess/JJ
cash/NN
flow/NN
./.
NATIONAL/NNP
INCOME/NNP
REALTY/NNP
TRUST/NNP
said/VBD
it/PRP
will/MD
resume/VB
dividend/NN
payments/NNS
with/IN
a/DT
12-cent-a-share/JJ
dividend/NN
to/TO
be/VB
paid/VBN
Nov./NNP
6/CD
to/TO
shares/NNS
of/IN
record/NN
Oct./NNP
25/CD
./.
The/DT
mortgage/NN
and/CC
equity/NN
real/JJ
estate/NN
investment/NN
trust/NN
last/RB
paid/VBD
a/DT
dividend/NN
on/IN
Aug./NNP
1/CD
,/,
1988/CD
,/,
when/WRB
holders/NNS
received/VBD
75/CD
cents/NNS
a/DT
share/NN
./.
Despite/IN
continuing/VBG
troubles/NNS
with/IN
problem/NN
properties/NNS
and/CC
nonperforming/VBG
loans/NNS
,/,
the/DT
Dallas/NNP
trust/NN
said/VBD
it/PRP
has/VBZ
rebuilt/VBN
reserves/NNS
,/,
abandoned/VBN
properties/NNS
with/IN
little/JJ
potential/NN
and/CC
experienced/VBD
improved/VBN
operating/NN
results/NNS
from/IN
joint/JJ
ventures/NNS
./.
MLX/NNP
Corp./NNP
said/VBD
it/PRP
reached/VBD
a/DT
preliminary/JJ
agreement/NN
with/IN
senior/JJ
lenders/NNS
to/TO
its/PRP$
refrigeration/NN
and/CC
air-conditioning/NN
group/NN
to/TO
restructure/VB
the/DT
$/$
188.5/CD
million/CD
of/IN
credit/NN
facilities/NNS
the/DT
lenders/NNS
provide/VBP
to/TO
the/DT
group/NN
./.
MLX/NNP
,/,
which/WDT
also/RB
makes/VBZ
aircraft/NN
and/CC
heavy-duty/JJ
truck/NN
parts/NNS
,/,
said/VBD
the/DT
debt/NN
was/VBD
accumulated/VBN
during/IN
its/PRP$
acquisition/NN
of/IN
nine/CD
businesses/NNS
that/WDT
make/VBP
up/RP
the/DT
group/NN
,/,
the/DT
biggest/JJS
portion/NN
of/IN
which/WDT
was/VBD
related/VBN
to/TO
the/DT
1986/CD
purchase/NN
of/IN
a/DT
Hillman/NNP
Co./NNP
unit/NN
./.
Among/IN
other/JJ
things/NNS
,/,
the/DT
restructured/VBN
facilities/NNS
will/MD
substantially/RB
reduce/VB
the/DT
group/NN
's/POS
required/VBN
amortization/NN
of/IN
the/DT
term/NN
loan/NN
portion/NN
of/IN
the/DT
credit/NN
facilities/NNS
through/IN
September/NNP
1992/CD
,/,
MLX/NNP
said/VBD
./.
Certain/JJ
details/NNS
of/IN
the/DT
restructured/VBN
facilities/NNS
remain/VBP
to/TO
be/VB
negotiated/VBN
./.
The/DT
agreement/NN
is/VBZ
subject/JJ
to/TO
completion/NN
of/IN
a/DT
definitive/JJ
amendment/NN
and/CC
appropriate/JJ
approvals/NNS
./.
William/NNP
P./NNP
Panny/NNP
,/,
MLX/NNP
chairman/NN
and/CC
chief/JJ
executive/NN
,/,
said/VBD
the/DT
pact/NN
``/``
will/MD
provide/VB
MLX/NNP
with/IN
the/DT
additional/JJ
time/NN
and/CC
flexibility/NN
necessary/JJ
to/TO
complete/VB
the/DT
restructuring/NN
of/IN
the/DT
company/NN
's/POS
capital/NN
structure/NN
./.
''/''
MLX/NNP
has/VBZ
filed/VBN
a/DT
registration/NN
statement/NN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
covering/VBG
a/DT
proposed/VBN
offering/NN
of/IN
$/$
120/CD
million/CD
in/IN
long-term/JJ
senior/JJ
subordinated/VBN
notes/NNS
and/CC
warrants/NNS
./.
Dow/NNP
Jones/NNP
&/CC
Co./NNP
said/VBD
it/PRP
acquired/VBD
a/DT
15/CD
%/NN
interest/NN
in/IN
DataTimes/NNP
Corp./NNP
,/,
a/DT
subsidiary/NN
of/IN
Oklahoma/NNP
Publishing/NNP
Co./NNP
,/,
Oklahoma/NNP
City/NNP
,/,
that/WDT
provides/VBZ
electronic/JJ
research/NN
services/NNS
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Customers/NNS
of/IN
either/DT
DataTimes/NNP
or/CC
Dow/NNP
Jones/NNP
News\/Retrieval/NNP
are/VBP
able/JJ
to/TO
access/VB
the/DT
information/NN
on/IN
both/DT
services/NNS
./.
Dow/NNP
Jones/NNP
is/VBZ
the/DT
publisher/NN
of/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
./.
Flowers/NNPS
Industries/NNPS
Inc./NNP
said/VBD
it/PRP
will/MD
report/VB
a/DT
charge/NN
of/IN
eight/CD
cents/NNS
to/TO
10/CD
cents/NNS
a/DT
share/NN
for/IN
its/PRP$
fiscal/JJ
first/JJ
quarter/NN
,/,
ended/VBD
Sept./NNP
23/CD
,/,
from/IN
the/DT
sale/NN
of/IN
two/CD
bakeries/NNS
,/,
in/IN
High/NNP
Point/NNP
,/,
N.C./NNP
,/,
and/CC
Gadsden/NNP
,/,
Ala/NNP
./.
The/DT
convenience-food/NN
company/NN
said/VBD
it/PRP
sold/VBD
the/DT
bakeries/NNS
to/TO
Mills/NNP
Family/NNP
Bakery/NNP
for/IN
an/DT
undisclosed/JJ
amount/NN
./.
It/PRP
said/VBD
the/DT
sales/NNS
were/VBD
part/NN
of/IN
a/DT
1983/CD
Federal/NNP
Trade/NNP
Commission/NNP
Consent/NNP
Order/NNP
./.
A/DT
year/NN
earlier/RB
,/,
Flowers/NNS
had/VBD
fiscal/JJ
first-quarter/JJ
net/JJ
income/NN
of/IN
$/$
8/CD
million/CD
,/,
or/CC
23/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
170.4/CD
million/CD
./.
Raw-steel/JJ
production/NN
by/IN
the/DT
nation/NN
's/POS
mills/NNS
decreased/VBD
0.8/CD
%/NN
last/JJ
week/NN
to/TO
1,828,000/CD
tons/NNS
from/IN
1,843,000/CD
tons/NNS
the/DT
previous/JJ
week/NN
,/,
the/DT
American/NNP
Iron/NNP
and/CC
Steel/NNP
Institute/NNP
said/VBD
./.
Last/JJ
week/NN
's/POS
output/NN
rose/VBD
1.4/CD
%/NN
from/IN
the/DT
1,802,000/CD
tons/NNS
produced/VBD
a/DT
year/NN
earlier/RB
./.
The/DT
industry/NN
used/VBN
82.2/CD
%/NN
of/IN
its/PRP$
capability/NN
last/JJ
week/NN
,/,
compared/VBN
with/IN
82.8/CD
%/NN
the/DT
previous/JJ
week/NN
and/CC
84/CD
%/NN
a/DT
year/NN
ago/RB
./.
The/DT
capability/NN
utilization/NN
rate/NN
is/VBZ
a/DT
calculation/NN
designed/VBN
to/TO
indicate/VB
at/IN
what/WP
percent/NN
of/IN
its/PRP$
production/NN
capability/NN
the/DT
industry/NN
is/VBZ
operating/VBG
in/IN
a/DT
given/VBN
week/NN
./.
Selwyn/NNP
B./NNP
Kossuth/NNP
was/VBD
named/VBN
executive/NN
director/NN
of/IN
the/DT
commission/NN
,/,
effective/JJ
early/JJ
November/NNP
./.
Mr./NNP
Kossuth/NNP
,/,
52/CD
years/NNS
old/JJ
,/,
succeeds/VBZ
Ermanno/NNP
Pascutto/NNP
,/,
36/CD
,/,
who/WP
resigned/VBD
to/TO
join/VB
Hong/NNP
Kong/NNP
's/POS
Securities/NNPS
and/CC
Futures/NNPS
Commission/NNP
./.
Mr./NNP
Kossuth/NNP
was/VBD
vice/NN
president/NN
and/CC
director/NN
,/,
corporate/JJ
finance/NN
,/,
of/IN
Nesbitt/NNP
Thomson/NNP
Deacon/NNP
Inc./NNP
,/,
a/DT
Toronto/NNP
investment/NN
dealer/NN
./.
Dun/NNP
&/CC
Bradstreet/NNP
Corp./NNP
's/POS
Market/NNP
Data/NNP
Retrieval/NNP
unit/NN
said/VBD
it/PRP
acquired/VBD
School/NNP
and/CC
College/NNP
Construction/NNP
Reports/NNPS
service/NN
from/IN
Intelligence/NNP
for/IN
Education/NNP
Inc/NNP
./.
Terms/NNS
were/VBD
n't/RB
disclosed/JJ
./.
The/DT
service/NN
supplies/VBZ
weekly/JJ
reports/NNS
on/IN
school/NN
and/CC
college/NN
construction/NN
plans/NNS
./.
Market/NNP
Data/NNP
Retrieval/NNP
is/VBZ
a/DT
compiler/NN
of/IN
educational/JJ
information/NN
and/CC
provides/VBZ
related/JJ
services/NNS
./.
Closely/RB
held/JJ
Intelligence/NNP
in/IN
Education/NNP
,/,
of/IN
Larchmont/NNP
,/,
N.Y./NNP
,/,
is/VBZ
an/DT
educational/JJ
publisher/NN
and/CC
consultant/NN
./.
A/DT
battle/NN
is/VBZ
raging/VBG
in/IN
Venice/NNP
over/IN
plans/NNS
to/TO
have/VB
the/DT
1,200-year-old/JJ
Italian/JJ
city/NN
be/VB
the/DT
site/NN
for/IN
a/DT
universal/JJ
exposition/NN
in/IN
2000/CD
./.
The/DT
plans/NNS
include/VBP
a/DT
subway/NN
system/NN
,/,
a/DT
congress/NN
center/NN
,/,
floating/JJ
trees/NNS
,/,
fanciful/JJ
fountains/NNS
--/:
and/CC
as/RB
many/JJ
as/IN
60,000/CD
additional/JJ
tourists/NNS
a/DT
day/NN
./.
Expo/NN
enthusiasts/NNS
argue/VBP
that/IN
holding/VBG
the/DT
fair/NN
would/MD
attract/VB
businesses/NNS
,/,
create/VBP
jobs/NNS
and/CC
help/VB
renovate/VB
abandoned/VBN
sections/NNS
of/IN
town/NN
./.
But/CC
opponents/NNS
fear/VBP
overcrowding/JJ
./.
``/``
This/DT
city/NN
already/RB
has/VBZ
too/RB
many/JJ
tourists/NNS
,/,
and/CC
it/PRP
ca/MD
n't/RB
hold/VB
them/PRP
all/DT
,/,
''/''
says/VBZ
Pierluigi/NNP
Beggiato/NNP
,/,
the/DT
president/NN
of/IN
the/DT
Venice/NNP
hoteliers/NNS
association/NN
./.
About/IN
40/CD
Italian/JJ
businesses/NNS
,/,
including/VBG
Fiat/NNP
S.p/NNP
./.
A./NNP
and/CC
Ing/NNP
./.
C./NNP
Olivetti/NNP
&/CC
Co./NNP
,/,
have/VBP
formed/VBN
a/DT
consortium/NN
to/TO
lobby/NN
for/IN
holding/VBG
the/DT
expo/NN
in/IN
Venice/NNP
./.
Three/CD
gambling/NN
casinos/NNS
have/VBP
opened/VBN
in/IN
Poland/NNP
./.
The/DT
three/CD
establishments/NNS
--/:
two/CD
in/IN
Warsaw/NNP
and/CC
one/CD
in/IN
Krakow/NNP
--/:
accept/VB
only/JJ
foreign/JJ
currency/NN
and/CC
are/VBP
joint/JJ
ventures/NNS
between/IN
Polish/JJ
firms/NNS
and/CC
Western/JJ
companies/NNS
./.
Not/RB
all/DT
Poles/NNPS
are/VBP
pleased/VBN
./.
``/``
What/WP
do/VBP
we/PRP
want/VBP
casinos/NNS
for/IN
when/WRB
we/PRP
have/VBP
n't/RB
got/VBN
anything/NN
in/IN
the/DT
shops/NNS
?/.
''/''
one/CD
housewife/NN
asked/VBD
./.
But/CC
Bogdan/NNP
Gumkowski/NNP
,/,
who/WP
runs/VBZ
the/DT
casino/NN
at/IN
Warsaw/NNP
's/POS
Marriott/NNP
Hotel/NNP
,/,
said/VBD
the/DT
ventures/NNS
would/MD
help/VB
Poland/NNP
service/NN
its/PRP$
$/$
39/CD
billion/CD
foreign/JJ
debt/NN
by/IN
pouring/VBG
dollars/NNS
into/IN
the/DT
state/NN
firms/NNS
in/IN
the/DT
joint/JJ
ventures/NNS
--/:
the/DT
LOT/NNP
airline/NN
and/CC
Orbis/NNP
tourist/NN
organization/NN
./.
Algeria/NNP
plans/VBZ
to/TO
increase/VB
natural-gas/NN
sales/NNS
to/TO
Europe/NNP
and/CC
the/DT
U.S/NNP
./.
According/VBG
to/TO
the/DT
Middle/NNP
East/NNP
Economic/NNP
Survey/NNP
,/,
the/DT
North/JJ
African/JJ
nation/NN
is/VBZ
holding/VBG
talks/NNS
with/IN
Italy/NNP
for/IN
adding/VBG
a/DT
fourth/JJ
pipe/NN
to/TO
a/DT
section/NN
of/IN
the/DT
Trans-Mediterranean/NNP
pipeline/NN
,/,
expanding/VBG
capacity/NN
by/IN
up/IN
to/TO
six/CD
billion/CD
cubic/JJ
meters/NNS
a/DT
year/NN
from/IN
12.5/CD
billion/CD
./.
Algeria/NNP
also/RB
wants/VBZ
to/TO
build/VB
a/DT
pipeline/NN
through/IN
Morocco/NNP
and/CC
across/IN
the/DT
Strait/NNP
of/IN
Gibraltar/NNP
to/TO
supply/VB
Spain/NNP
,/,
France/NNP
and/CC
West/NNP
Germany/NNP
with/IN
up/IN
to/TO
15/CD
billion/CD
cubic/JJ
meters/NNS
a/DT
year/NN
by/IN
the/DT
late/JJ
1990s/NNS
./.
South/NNP
Africa/NNP
's/POS
National/NNP
Union/NNP
of/IN
Mineworkers/NNPS
agreed/VBD
to/TO
suspend/VB
the/DT
strike/NN
by/IN
diamond/NN
workers/NNS
and/CC
resume/VB
negotiations/NNS
with/IN
De/NNP
Beers/NNP
Consolidated/NNP
Mines/NNPS
Ltd./NNP
over/IN
their/PRP$
wage/NN
dispute/NN
,/,
De/NNP
Beers/NNP
said/VBD
./.
It/PRP
also/RB
said/VBD
the/DT
union/NN
had/VBD
agreed/VBN
to/TO
meet/VB
the/DT
company/NN
for/IN
further/JJ
talks/NNS
tomorrow/NN
./.
The/DT
strike/NN
at/IN
five/CD
De/NNP
Beers/NNP
mines/NNS
began/VBD
last/JJ
Thursday/NNP
,/,
with/IN
9,500/CD
out/IN
of/IN
a/DT
total/JJ
10,000/CD
NUM/NNP
members/NNS
employed/VBN
on/IN
De/NNP
Beers/NNP
mines/NNS
participating/VBG
,/,
according/VBG
to/TO
the/DT
union/NN
,/,
while/IN
De/NNP
Beers/NNP
said/VBD
there/EX
were/VBD
7,800/CD
participants/NNS
./.
The/DT
union/NN
has/VBZ
demanded/VBN
a/DT
37.6/CD
%/NN
increase/NN
in/IN
the/DT
minimum/NN
wage/NN
while/IN
De/NNP
Beers/NNP
's/POS
final/JJ
offer/NN
was/VBD
an/DT
increase/NN
of/IN
17/CD
%/NN
./.
A/DT
35-nation/JJ
environmental/JJ
conference/NN
opened/VBN
in/IN
Sofia/NNP
,/,
Bulgaria/NNP
./.
The/DT
gathering/NN
is/VBZ
expected/VBN
to/TO
focus/VB
on/IN
curbing/VBG
the/DT
fouling/NN
of/IN
rivers/NNS
and/CC
lakes/NNS
,/,
limiting/VBG
damage/NN
from/IN
industrial/JJ
accidents/NNS
and/CC
improving/VBG
the/DT
handling/NN
of/IN
harmful/JJ
chemicals/NNS
./.
West/JJ
German/JJ
Environment/NNP
Minister/NNP
Klaus/NNP
Toepfer/NNP
said/VBD
Bonn/NNP
is/VBZ
convinced/VBN
of/IN
the/DT
need/NN
for/IN
cooperation/NN
,/,
``/``
especially/RB
with/IN
our/PRP$
neighbors/NNS
in/IN
the/DT
East/NNP
,/,
because/IN
we/PRP
are/VBP
directly/RB
affected/JJ
by/IN
their/PRP$
ecological/JJ
progress/NN
or/CC
lack/NN
of/IN
it/PRP
./.
''/''
The/DT
U.S./NNP
and/CC
Canada/NNP
joined/VBD
every/DT
European/JJ
country/NN
except/IN
Albania/NNP
at/IN
the/DT
meeting/NN
./.
The/DT
Swedish/JJ
publishers/NNS
of/IN
a/DT
new/JJ
Estonian-language/JJ

newspaper/NN
rushed/VBD
an/DT
extra/JJ
edition/NN
across/IN
the/DT
Baltic/NNP
on/IN
Oct./NNP
10/CD
after/IN
the/DT
first/JJ
run/NN
sold/VBN
out/RB
in/IN
one/CD
day/NN
./.
Editor/NNP
Hasse/NNP
Olsson/NNP
said/VBD
plans/NNS
had/VBD
called/VBN
for/IN
7,000/CD
copies/NNS
of/IN
the/DT
monthly/JJ
Are/NNP
Paev/NNP
Business/NNP
Paper/NNP
newsstands/NNS
and/CC
an/DT
additional/JJ
3,000/CD
promotion/NN
issues/NNS
to/TO
be/VB
sent/VBN
by/IN
direct/JJ
mail/NN
./.
He/PRP
said/VBD
13,000/CD
more/JJR
copies/NNS
were/VBD
sent/VBN
to/TO
Estonia/NNP
because/IN
of/IN
strong/JJ
sales/NNS
./.
The/DT
Swedish/JJ
publishing/NN
company/NN
Bonniers/NNP
owns/VBZ
51/CD
%/NN
of/IN
Are/NNP
Paev/NNP
,/,
and/CC
the/DT
Estonian/JJ
management/NN
company/NN
Minor/NNP
owns/VBZ
49/CD
%/NN
./.
Angel/NNP
Gurria/NNP
,/,
Mexico/NNP
's/POS
top/JJ
debt/NN
negotiator/NN
,/,
said/VBD
the/DT
country/NN
's/POS
creditor/NN
banks/NNS
are/VBP
responding/VBG
positively/RB
to/TO
Mexico/NNP
's/POS
debt-reduction/NN
package/NN
./.
Mr./NNP
Gurria/NNP
's/POS
optimism/NN
contrasts/VBZ
with/IN
some/DT
bankers/NNS
'/POS
views/NNS
that/IN
the/DT
deal/NN
may/MD
require/VB
a/DT
lot/NN
of/IN
arm/NN
twisting/NN
by/IN
the/DT
U.S./NNP
Treasury/NNP
in/IN
order/NN
to/TO
succeed/VB
./.
Mr./NNP
Gurria/NNP
,/,
Mexico/NNP
's/POS
under-secretary/NN
of/IN
the/DT
ministry/NN
of/IN
finance/NN
,/,
met/VBD
yesterday/NN
with/IN
European/JJ
bankers/NNS
in/IN
London/NNP
,/,
at/IN
the/DT
half-way/JJ
point/NN
on/IN
a/DT
so-called/JJ
road/NN
show/NN
to/TO
market/VB
the/DT
package/NN
around/IN
the/DT
world/NN
./.
An/DT
increasing/VBG
number/NN
of/IN
banks/NNS
appear/VBP
to/TO
be/VB
considering/VBG
the/DT
option/NN
under/IN
the/DT
deal/NN
whereby/WRB
they/PRP
can/MD
swap/VB
their/PRP$
Mexican/JJ
loans/NNS
for/IN
30-year/JJ
bonds/NNS
with/IN
a/DT
face/NN
value/NN
discounted/VBN
by/IN
35/CD
%/NN
,/,
Mr./NNP
Gurria/NNP
said/VBD
./.
The/DT
other/JJ
two/CD
options/NNS
consist/VBP
of/IN
swapping/VBG
loans/NNS
for/IN
bonds/NNS
with/IN
6.25/CD
%/NN
interest/NN
rates/NNS
,/,
or/CC
providing/VBG
fresh/JJ
loans/NNS
./.
The/DT
accord/NN
,/,
which/WDT
covers/VBZ
$/$
52.7/CD
billion/CD
of/IN
Mexico/NNP
's/POS
medium/NN
long-term/JJ
debt/NN
,/,
is/VBZ
expected/VBN
to/TO
go/VB
into/IN
effect/NN
in/IN
early/JJ
China/NNP
's/POS
top/JJ
film/NN
actress/NN
,/,
Liu/NNP
Xiaoqing/NNP
,/,
paid/VBD
$/$
4,555/CD
in/IN
back/JJ
taxes/NNS
and/CC
fines/NNS
in/IN
Shandong/NNP
province/NN
,/,
the/DT
People/NNPS
's/POS
Daily/NNP
reported/VBD
./.
The/DT
amount/NN
is/VBZ
equal/JJ
to/TO
about/IN
30/CD
years/NNS
earnings/NNS
for/IN
the/DT
average/JJ
peasant/NN
,/,
who/WP
makes/VBZ
$/$
145/CD
a/DT
year/NN
.../:
./.
China/NNP
will/MD
spend/VB
$/$
9.45/CD
million/CD
for/IN
urgent/JJ
maintenance/NN
on/IN
Tibet/NNP
's/POS
Potala/NNP
Palace/NNP
,/,
former/JJ
home/NN
of/IN
the/DT
Dalai/NNP
Lama/NNP
,/,
the/DT
China/NNP
News/NNP
Service/NNP
said/VBD
./.
The/DT
Dalai/NNP
Lama/NNP
,/,
who/WP
was/VBD
just/RB
awarded/VBN
the/DT
Nobel/NNP
Peace/NNP
Prize/NNP
,/,
lives/VBZ
in/IN
exile/NN
in/IN
India/NNP
./.
George/NNP
W./NNP
Koch/NNP
,/,
63/CD
years/NNS
old/JJ
,/,
president/NN
and/CC
chief/JJ
executive/NN
officer/NN
of/IN
Grocery/NNP
Manufacturers/NNPS
of/IN
America/NNP
Inc./NNP
,/,
was/VBD
elected/VBN
a/DT
director/NN
of/IN
this/DT
maker/NN
of/IN
spices/NNS
,/,
seasonings/NNS
and/CC
specialty/NN
foods/NNS
,/,
succeeding/VBG
Erskin/NNP
N./NNP
White/NNP
Jr./NNP
,/,
65/CD
,/,
who/WP
resigned/VBD
./.
American/NNP
Business/NNP
Computer/NNP
Corp./NNP
said/VBD
it/PRP
privately/RB
placed/VBD
1,035,000/CD
common/JJ
shares/NNS
at/IN
$/$
2.50/CD
a/DT
share/NN
./.
The/DT
placement/NN
was/VBD
made/VBN
through/IN
Gray/NNP
Seifert/NNP
Securities/NNPS
,/,
New/NNP
York/NNP
,/,
to/TO
institutional/JJ
investors/NNS
./.
Proceeds/NNS
will/MD
be/VB
used/VBN
to/TO
commercialize/VB
recently/RB
patented/VBN
technology/NN
and/CC
support/VB
the/DT
company/NN
's/POS
international/JJ
expansion/NN
./.
The/DT
company/NN
develops/VBZ
and/CC
markets/VBZ
products/NNS
for/IN
the/DT
food/NN
service/NN
industry/NN
./.
THE/DT
R.H./NNP
MACY/NNP
&/CC
CO/NNP
./.
department-store/NN
chain/NN
is/VBZ
n't/RB
for/IN
sale/NN
./.
In/IN
yesterday/NN
's/POS
edition/NN
,/,
it/PRP
was/VBD
incorrectly/RB
included/VBN
with/IN
a/DT
list/NN
of/IN
New/NNP
York/NNP
chains/NNS
up/IN
for/IN
sale/NN
./.
Media/NN
:/:
Third-Quarter/NN
Results/NNS
Mixed/VBN
At/IN
Newspapers/NNS
--/:
Newsprint/NN
Prices/NNS
Favorable/JJ
,/,
But/CC
Advertising/NN
Linage/NN
Was/VBD
Flat/JJ
or/CC
Declining/JJ
''/''
--/:
WSJ/NNP
Oct./NNP
16/CD
,/,
1989/CD
)/)
Korean/JJ
car/NN
exports/NNS
have/VBP
slid/VBN
about/IN
40/CD
%/NN
so/RB
far/RB
this/DT
year/NN
,/,
but/CC
auto/NN
makers/NNS
here/RB
are/VBP
n't/RB
panicking/VBG
./.
They/PRP
are/VBP
enjoying/VBG
domestic/JJ
sales/NNS
that/WDT
are/VBP
more/RBR
than/IN
making/VBG
up/RB
for/IN
lost/VBN
overseas/JJ
sales/NNS
./.
South/JJ
Korean/JJ
consumers/NNS
are/VBP
expected/VBN
to/TO
buy/VB
almost/RB
500,000/CD
passenger/NN
cars/NNS
this/DT
year/NN
,/,
up/RB
60/CD
%/NN
from/IN
1988/CD
./.
In/IN
fact/NN
,/,
some/DT
auto/NN
executives/NNS
suggest/VBP
that/IN
slackened/VBN
demand/NN
for/IN
their/PRP$
cars/NNS
in/IN
the/DT
U.S./NNP
and/CC
Canada/NNP
is/VBZ
a/DT
blessing/NN
;/:
otherwise/RB
they/PRP
would/MD
n't/RB
be/VB
able/JJ
to/TO
keep/VB
up/RB
with/IN
demand/NN
in/IN
the/DT
more/RBR
profitable/JJ
local/JJ
market/NN
./.
``/``
We/PRP
are/VBP
very/RB
lucky/JJ
to/TO
easily/RB
change/VB
an/DT
export/NN
loss/NN
to/TO
domestic/JJ
plus/NN
,/,
''/''
says/VBZ
Hong/NNP
Tu/NNP
Pyo/NNP
,/,
managing/NN
director/NN
of/IN
domestic/JJ
marketing/NN
for/IN
Hyundai/NNP
Motor/NNP
Co/NNP
./.
As/IN
it/PRP
is/VBZ
,/,
waiting/NN
lists/NNS
of/IN
a/DT
month/NN
are/VBP
n't/RB
unusual/JJ
for/IN
popular/JJ
models/NNS
./.
Demand/NN
is/VBZ
so/RB
strong/JJ
that/IN
all/DT
of/IN
the/DT
domestic/JJ
makers/NNS
--/:
Hyundai/NNP
,/,
Kia/NNP
Motors/NNPS
Corp./NNP
,/,
Daewoo/NNP
Motor/NNP
Co./NNP
and/CC
even/RB
upstart/JJ
SsangYong/NNP
Motor/NNP
Co./NNP
--/:
plan/VBP
to/TO
build/VB
more/JJR
factories/NNS
./.
Industry/NN
analysts/NNS
predict/VBP
that/IN
by/IN
1995/CD
,/,
South/NNP
Korea/NNP
will/MD
be/VB
building/VBG
three/CD
million/CD
cars/NNS
a/DT
year/NN
--/:
about/IN
half/NN
of/IN
that/DT
for/IN
export/NN
./.
It/PRP
's/VBZ
an/DT
optimistic/JJ
move/NN
in/IN
a/DT
industry/NN
already/RB
facing/VBG
world-wide/JJ
overcapacity/NN
./.
But/CC
South/NNP
Korean/NNP
auto/NN
makers/NNS
are/VBP
confident/JJ
that/IN
the/DT
export/NN
market/NN
will/MD
bounce/VB
back/RB
and/CC
that/DT
demand/NN
in/IN
Korea/NNP
will/MD
stay/VB
strong/JJ
./.
Currently/RB
only/RB
one/CD
in/IN
38/CD
South/NNPS
Koreans/NNPS
owns/VBZ
a/DT
car/NN
,/,
up/RB
from/IN
one/CD
in/IN
200/CD
a/DT
decade/NN
ago/RB
./.
``/``
In/IN
the/DT
year/NN
2000/CD
it/PRP
will/MD
be/VB
one/CD
car/NN
per/IN
family/NN
./.
At/IN
that/DT
point/NN
domestic/JJ
sales/NNS
will/MD
slow/VB
down/RB
,/,
''/''
says/VBZ
Kim/NNP
Yoon/NNP
Kwon/NNP
,/,
director/NN
of/IN
marketing/NN
for/IN
Daewoo/NNP
Motor/NNP
./.
The/DT
reason/NN
for/IN
the/DT
tremendous/JJ
demand/NN
is/VBZ
simple/NN
:/:
South/NNPS
Koreans/NNPS
suddenly/RB
have/VBP
a/DT
lot/NN
more/JJR
money/NN
./.
``/``
We/PRP
never/RB
thought/VBD
we/PRP
'd/MD
own/VB
a/DT
car/NN
,/,
''/''
says/VBZ
Kwang/NNP
Ok/NN
Kyong/NNP
,/,
who/WP
just/RB
bought/VBD
a/DT
Daewoo/NNP
LeMans/NNP
on/IN
a/DT
five-year/JJ
loan/NN
./.
She/PRP
and/CC
her/PRP$
husband/NN
started/VBD
a/DT
small/JJ
printing/NN
business/NN
and/CC
need/VBP
the/DT
car/NN
for/IN
work/NN
as/RB
well/RB
as/IN
for/IN
weekend/NN
jaunts/NNS
./.
Pay/NN
raises/NNS
of/IN
60/CD
%/NN
over/IN
the/DT
past/JJ
three/CD
years/NNS
have/VBP
given/VBN
many/JJ
South/NNPS
Koreans/NNPS
the/DT
money/NN
to/TO
enjoy/VB
the/DT
things/NNS
they/PRP
were/VBD
supplying/VBG
the/DT
rest/NN
of/IN
the/DT
world/NN
./.
The/DT
success/NN
of/IN
newcomer/NN
SsangYong/NNP
Motor/NNP
shows/VBZ
the/DT
strength/NN
of/IN
the/DT
auto/NN
market/NN
and/CC
its/PRP$
growing/VBG
diversity/NN
./.
A/DT
part/NN
of/IN
the/DT
construction-oriented/JJ
conglomerate/NN
SsangYong/NNP
Group/NNP
,/,
it/PRP
took/VBD
over/IN
the/DT
dying/VBG
Dong-A/NNP
Motor/NNP
Co./NNP
in/IN
1986/CD
./.
SsangYong/NNP
began/VBD
making/VBG
variations/NNS
of/IN
the/DT
Jeep-like/JJ
``/``
Korando/NNP
''/''
vehicle/NN
./.
Dong-A/NNP
had/VBD
had/VBN
a/DT
technology/NN
agreement/NN
with/IN
Jeep/NN
maker/NN
American/NNP
Motors/NNPS
Corp./NNP
,/,
now/RB
a/DT
part/NN
of/IN
Chrysler/NNP
Corp/NNP
./.
The/DT
most/RBS
popular/JJ
style/NN
is/VBZ
the/DT
stretched/JJ
``/``
Family/NNP
,/,
''/''
which/WDT
resembles/VBZ
a/DT
Ford/NNP
Bronco/NNP
or/CC
Chevy/NNP
Blazer/NNP
./.
The/DT
four-wheel-drive/NN
vehicles/NNS
start/VBP
at/IN
$/$
15,000/CD
;/:
a/DT
Family/NNP
can/MD
cost/VB
over/IN
$/$
25,000/CD
./.
SsangYong/NNP
,/,
which/WDT
has/VBZ
only/RB
about/IN
3/CD
%/NN
of/IN
the/DT
domestic/JJ
market/NN
,/,
will/MD
sell/VB
about/IN
18,000/CD
of/IN
its/PRP$
models/NNS
this/DT
year/NN
,/,
twice/RB
as/RB
many/JJ
as/IN
last/JJ
year/NN
./.
It/PRP
sees/VBZ
sales/NNS
rising/VBG
45/CD
%/NN
to/TO
26,000/CD
units/NNS
next/JJ
year/NN
./.
The/DT
company/NN
plans/VBZ
to/TO
expand/VB
plant/NN
capacity/NN
50/CD
%/NN
by/IN
1991/CD
./.
By/IN
then/RB
it/PRP
also/RB
hopes/VBZ
to/TO
begin/VB
producing/VBG
a/DT
passenger/NN
car/NN
based/VBN
on/IN
the/DT
Volvo/NNP
240/CD
and/CC
selling/VBG
for/IN
about/IN
$/$
20,000/CD
./.
Hyundai/NNP
and/CC
Daewoo/NNP
seem/VBP
unconcerned/JJ
about/IN
the/DT
SsangYong/NNP
threat/NN
,/,
but/CC
Kia/NNP
,/,
the/DT
scrappy/JJ
No.3/JJ
auto/NN
maker/NN
,/,
is/VBZ
selling/VBG
four-wheel-drive/NN
vehicles/NNS
through/IN
its/PRP$
Asia/NNP
unit/NN
./.
It/PRP
plans/VBZ
to/TO
sell/VB
1,700/CD
units/NNS
in/IN
1989/CD
./.
Kia/NNP
,/,
the/DT
only/JJ
Korean/JJ
car/NN
maker/NN
that/WDT
has/VBZ
seen/VBN
its/PRP$
overseas/JJ
sales/NNS
grow/VB
in/IN
1989/CD
,/,
aims/VBZ
at/IN
Korea/NNP
's/POS
common/JJ
man/NN
./.
Its/PRP$
advantage/NN
has/VBZ
been/VBN
the/DT
peppy/JJ
little/JJ
Pride/NNP
,/,
sold/VBN
as/IN
the/DT
Ford/NNP
Festiva/NNP
in/IN
the/DT
U.S/NNP
./.
At/IN
3.8/CD
million/CD
won/NN
,/,
or/CC
$/$
5,700/CD
,/,
the/DT
econobox/NN
is/VBZ
the/DT
lowest-priced/JJ
car/NN
in/IN
South/NNP
Korea/NNP
./.
Along/IN
with/IN
two/CD
larger/JJR
models/NNS
,/,
the/DT
company/NN
claims/VBZ
18/CD
%/NN
of/IN
the/DT
domestic/JJ
market/NN
./.
Ford/NNP
Motor/NNP
Co./NNP
and/CC
Japan/NNP
's/POS
Mazda/NNP
Motor/NNP
Corp./NNP
have/VBP
equity/NN
interests/NNS
in/IN
Kia/NNP
./.
Kia/NNP
is/VBZ
the/DT
most/RBS
aggressive/JJ
of/IN
the/DT
Korean/NNP
Big/NNP
Three/NNP
in/IN
offering/VBG
financing/NN
./.
Loans/NNS
for/IN
as/RB
long/JJ
as/IN
five/CD
years/NNS
make/VBP
the/DT
cars/NNS
very/RB
accessible/JJ
,/,
with/IN
monthly/JJ
payments/NNS
as/RB
low/RB
as/IN
80,000/CD
won/NN
,/,
or/CC
$/$
120/CD
./.
Daewoo/NNP
Motor/NNP
,/,
a/DT
50-50/CD
joint/NN
venture/NN
with/IN
General/NNP
Motors/NNPS
Corp./NNP
and/CC
the/DT
Daewoo/NNP
Group/NNP
conglomerate/NN
,/,
is/VBZ
the/DT
only/JJ
auto/NN
maker/NN
that/WDT
appears/VBZ
to/TO
be/VB
hurting/VBG
./.
Shipments/NNS
of/IN
its/PRP$
Lemans/NNP
to/TO
GM/NNP
's/POS
Pontiac/NNP
division/NN
are/VBP
off/RB
about/IN
65/CD
%/NN
from/IN
a/DT
year/NN
ago/RB
,/,
versus/FW
a/DT
44/CD
%/NN
decline/NN
for/IN
Hyundai/NNP
and/CC
an/DT
18/CD
%/NN
increase/NN
for/IN
Kia/NNP
./.
Moreover/RB
,/,
Daewoo/NNP
's/POS
domestic/JJ
sales/NNS
have/VBP
grown/VBN
half/NN
as/RB
fast/RB
as/IN
sales/NNS
of/IN
its/PRP$
rivals/NNS
./.
The/DT
big/JJ
problem/NN
for/IN
Daewoo/NNP
,/,
which/WDT
holds/VBZ
about/IN
21/CD
%/NN
of/IN
the/DT
market/NN
,/,
is/VBZ
the/DT
long/JJ
series/NN
of/IN
labor/NN
disruptions/NNS
it/PRP
suffered/VBD
this/DT
year/NN
./.
But/CC
Daewoo/NNP
is/VBZ
expanding/VBG
too/RB
./.
In/IN
fact/NN
,/,
a/DT
sister/NN
company/NN
,/,
Daewoo/NNP
Shipbuilding/NNP
and/CC
Heavy/NNP
Machinery/NNP
,/,
plans/VBZ
to/TO
build/VB
240,000/CD
minicars/NNS
by/IN
the/DT
mid-1990s/NNS
./.
Hyundai/NNP
,/,
the/DT
Korean/JJ
market/NN
leader/NN
with/IN
a/DT
58/CD
%/NN
share/NN
,/,
also/RB
plans/VBZ
to/TO
jump/VB
into/IN
minicars/NNS
at/IN
the/DT
same/JJ
time/NN
./.
It/PRP
has/VBZ
a/DT
similar/JJ
project/NN
for/IN
200,000/CD
cars/NNS
a/DT
year/NN
./.
Kia/NNP
is/VBZ
reportedly/RB
also/RB
considering/VBG
such/JJ
a/DT
plan/NN
./.
Even/RB
giant/JJ
Samsung/NNP
Group/NNP
is/VBZ
rumored/VBN
in/IN
the/DT
Korean/JJ
press/NN
to/TO
be/VB
considering/VBG
getting/VBG
into/IN
the/DT
auto-making/NN
business/NN
;/:
a/DT
company/NN
spokesman/NN
had/VBD
no/DT
comment/NN
./.
Robert/NNP
P./NNP
Bulseco/NNP
,/,
44/CD
years/NNS
old/JJ
,/,
was/VBD
named/VBN
president/NN
and/CC
chief/JJ
administrative/JJ
officer/NN
of/IN
this/DT
regional/JJ
commercial/JJ
bank/NN
./.
Both/DT
posts/NNS
had/VBD
been/VBN
vacant/JJ
./.
Robert/NNP
Robie/NNP
,/,
51/CD
,/,
was/VBD
named/VBN
to/TO
the/DT
new/JJ
positions/NNS
of/IN
vice/NN
chairman/NN
and/CC
chief/JJ
credit/NN
officer/NN
./.
Many/JJ
skittish/JJ
mutual/JJ
fund/NN
investors/NNS
picked/VBD
up/RP
the/DT
phone/NN
yesterday/NN
,/,
but/CC
decided/VBD
not/RB
to/TO
cash/VB
in/IN
their/PRP$
chips/NNS
after/IN
all/DT
./.
As/IN
the/DT
stock/NN
market/NN
bounced/VBD
back/RB
,/,
withdrawals/NNS
of/IN
money/NN
from/IN
stock/NN
funds/NNS
amounted/VBD
to/TO
a/DT
mere/JJ
trickle/NN
compared/VBN
with/IN
Black/NNP
Monday/NNP
,/,
when/WRB
investors/NNS
dumped/VBD
$/$
2.3/CD
billion/CD
,/,
or/CC
about/IN
2/CD
%/NN
of/IN
stock-fund/NN
assets/NNS
./.
Fidelity/NNP
Investments/NNPS
,/,
the/DT
nation/NN
's/POS
largest/JJS
fund/NN
company/NN
,/,
said/VBD
phone/NN
volume/NN
was/VBD
more/RBR
than/IN
double/JJ
its/PRP$
typical/JJ
level/NN
,/,
but/CC
still/RB
half/NN
that/DT
of/IN
Oct./NNP
19/CD
,/,
1987/CD
./.
Net/JJ
outflows/NNS
from/IN
Fidelity/NNP
's/POS
stock/NN
funds/NNS
stood/VBD
at/IN
less/JJR
than/IN
$/$
300/CD
million/CD
,/,
or/CC
below/IN
15/CD
%/NN
of/IN
the/DT
$/$
2/CD
billion/CD
cash/NN
position/NN
of/IN
the/DT
firm/NN
's/POS
stock/NN
portfolios/NNS
./.
Much/RB
of/IN
the/DT
money/NN
was/VBD
switched/VBN
into/IN
the/DT
firm/NN
's/POS
money/NN
market/NN
funds/NNS
./.
Outflows/NNS
since/IN
the/DT
close/NN
of/IN
trading/NN
Friday/NNP
remain/VBP
below/IN
one-third/NN
their/PRP$
level/NN
of/IN
two/CD
years/NNS
ago/RB
,/,
Fidelity/NNP
said/VBD
./.
Other/JJ
mutual/JJ
fund/NN
companies/NNS
reported/VBD
even/RB
lighter/JJR
withdrawal/NN
requests/NNS
./.
And/CC
some/DT
investors/NNS
at/IN
Fidelity/NNP
and/CC
elsewhere/RB
even/RB
began/VBD
buying/VBG
stock/NN
funds/NNS
during/IN
the/DT
day/NN
./.
``/``
Two/CD
years/NNS
ago/RB
,/,
there/EX
was/VBD
a/DT
lot/NN
of/IN
redemption/NN
activity/NN
and/CC
trouble/NN
with/IN
people/NNS
getting/VBG
through/RB
on/IN
the/DT
phone/NN
,/,
''/''
said/VBD
Kathryn/NNP
McGrath/NNP
,/,
head/NN
of/IN
the/DT
investment/NN
management/NN
division/NN
of/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
./.
This/DT
time/NN
,/,
``/``
We/PRP
do/VBP
n't/RB
have/VB
that/DT
at/IN
all/DT
./.
''/''
Of/IN
course/NN
,/,
the/DT
relative/JJ
calm/NN
could/MD
be/VB
jolted/VBN
if/IN
the/DT
market/NN
plunges/VBZ
again/RB
./.
And/CC
any/DT
strong/JJ
surge/NN
in/IN
redemptions/NNS
could/MD
force/VB
some/DT
funds/NNS
to/TO
dump/VB
stocks/NNS
to/TO
raise/VB
cash/NN
,/,
as/IN
some/DT
did/VBD
during/IN
Black/NNP
Monday/NNP
./.
But/CC
funds/NNS
generally/RB
are/VBP
better/RBR
prepared/JJ
this/DT
time/NN
around/RB
./.
As/IN
a/DT
group/NN
,/,
their/PRP$
cash/NN
position/NN
of/IN
10.2/CD
%/NN
of/IN
assets/NNS
in/IN
August/NNP
--/:
the/DT
latest/JJS
figure/NN
available/JJ
--/:
is/VBZ
14/CD
%/NN
higher/JJR
than/IN
two/CD
years/NNS
earlier/RB
./.
Many/JJ
fund/NN
managers/NNS
have/VBP
boosted/VBN
their/PRP$
cash/NN
levels/NNS
in/IN
recent/JJ
weeks/NNS
./.
The/DT
biggest/JJS
flurry/NN
of/IN
investor/NN
activity/NN
came/VBD
early/RB
in/IN
the/DT
day/NN
./.
Vanguard/NNP
Group/NNP
Inc./NNP
saw/VBD
heavy/JJ
exchanges/NNS
from/IN
stock/NN
funds/NNS
into/IN
money/NN
market/NN
funds/NNS
after/IN
the/DT
telephone/NN
lines/NNS
opened/VBN
at/IN
8:30/CD
a.m/RB
./.
``/``
In/IN
the/DT
first/JJ
hour/NN
,/,
the/DT
real/JJ
nervous/JJ
folks/NNS
came/VBD
along/RB
,/,
''/''
a/DT
spokesman/NN
said/VBD
./.
``/``
But/CC
the/DT
horrendous/JJ
pace/NN
of/IN
call/NN
volume/NN
in/IN
the/DT
first/JJ
half-hour/JJ
slowed/VBD
considerably/RB
./.
''/''
At/IN
Scudder/NNP
,/,
Stevens/NNP
&/CC
Clark/NNP
Inc./NNP
,/,
phone/NN
calls/NNS
came/VBD
in/IN
at/IN
40/CD
%/NN
more/JJR
than/IN
the/DT
normal/JJ
pace/NN
through/IN
early/JJ
afternoon/NN
./.
Most/JJS
of/IN
that/DT
increase/NN
came/VBD
in/IN
the/DT
first/JJ
hour/NN
after/IN
the/DT
phone/NN
lines/NNS
opened/VBN
at/IN
8/CD
a.m/RB
./.
As/IN
stocks/NNS
rose/VBD
,/,
in/IN
fact/NN
,/,
some/DT
investors/NNS
changed/VBD
course/NN
and/CC
reversed/VBD
their/PRP$
sell/NN
orders/NNS
./.
Many/JJ
funds/NNS
allow/VBP
investors/NNS
to/TO
void/VB
orders/NNS
before/IN
the/DT
close/NN
of/IN
trading/NN
./.
At/IN
Scudder/NNP
and/CC
at/IN
the/DT
smaller/JJR
Ivy/NNP
funds/NNS
group/NN
in/IN
Hingham/NNP
,/,
Mass./NNP
,/,
for/IN
instance/NN
,/,
some/DT
shareholders/NNS
called/VBD
early/RB
in/IN
the/DT
morning/NN
to/TO
switch/VB
money/NN
from/IN
stock/NN
funds/NNS
to/TO
money/NN
market/NN
funds/NNS
,/,
but/CC
later/RB
called/VBN
back/RB
to/TO
reverse/VB
the/DT
switches/NNS
./.
Because/IN
mutual/JJ
fund/NN
trades/NNS
do/VBP
n't/RB
take/VB
effect/NN
until/IN
the/DT
market/NN
close/RB
--/:
in/IN
this/DT
case/NN
,/,
at/IN
4/CD
p.m./RB
--/:
these/DT
shareholders/NNS
effectively/RB
stayed/VBD
put/VBN
./.
At/IN
Fidelity/NNP
's/POS
office/NN
in/IN
downtown/NN
Boston/NNP
,/,
Gerald/NNP
Sherman/NNP
walked/VBD
in/RB
shortly/RB
after/IN
7:30/CD
a.m./RB
and/CC
placed/VBD
an/DT
order/NN
to/TO
switch/VB
his/PRP$
retirement/NN
accounts/NNS
out/IN
of/IN
three/CD
stock/NN
funds/NNS
and/CC
into/IN
a/DT
money/NN
market/NN
fund/NN
./.
But/CC
by/IN
3:15/CD
p.m./RB
,/,
with/IN
the/DT
market/NN
comfortably/RB
ahead/RB
for/IN
the/DT
day/NN
,/,
Mr./NNP
Sherman/NNP
was/VBD
preparing/VBG
to/TO
undo/VB
his/PRP$
switch/NN
./.
``/``
It/PRP
's/VBZ
a/DT
nice/JJ
feeling/NN
to/TO
know/VB
that/IN
things/NNS
stabilized/VBD
,/,
''/''
said/VBD
Mr./NNP
Sherman/NNP
,/,
the/DT
51-year-old/JJ
co-owner/NN
of/IN
a/DT
discount/NN
department/NN
store/NN
./.
But/CC
some/DT
investors/NNS
continued/VBD
to/TO
switch/VB
out/RB
of/IN
high-risk/CD
,/,
high-yield/JJ
junk/NN
funds/NNS
despite/IN
yesterday/NN
's/POS
rebound/NN
from/IN
that/DT
market/NN
's/POS
recent/JJ
price/NN
declines/NNS
./.
Shareholders/NNS
have/VBP
been/VBN
steadily/RB
bailing/VBG
out/RB
of/IN
several/JJ
big/JJ
junk/NN
funds/NNS
the/DT
past/JJ
several/JJ
weeks/NNS
as/IN
the/DT
$/$
200/CD
billion/CD
market/NN
was/VBD
jolted/VBN
by/IN
a/DT
cash/NN
crunch/NN
at/IN
Campeau/NNP
Corp./NNP
and/CC
steadily/RB
declining/VBG
prices/NNS
./.
Much/RB
of/IN
the/DT
money/NN
has/VBZ
been/VBN
switched/VBN
into/IN
money/NN
market/NN
funds/NNS
,/,
fund/NN
executives/NNS
say/VBP
./.
Instead/RB
of/IN
selling/VBG
bonds/NNS
to/TO
meet/VB
redemptions/NNS
,/,
however/RB
,/,
some/DT
funds/NNS
have/VBP
borrowed/VBN
from/IN
banks/NNS
to/TO
meet/VB
withdrawal/NN
requests/NNS
./.
This/DT
avoids/VBZ
knocking/VBG
down/RP
prices/NNS
further/RBR
./.
The/DT
$/$
1.1/CD
billion/CD
T./NNP
Rowe/NNP
Price/NNP
High/NNP
Yield/NNP
Fund/NNP
was/VBD
among/IN
the/DT
funds/NNS
that/WDT
borrowed/VBD
during/IN
the/DT
Campeau/NNP
crisis/NN
,/,
says/VBZ
George/NNP
J./NNP
Collins/NNP
,/,
president/NN
of/IN
T./NNP
Rowe/NNP
Price/NNP
Associates/NNPS
Inc/NNP
./.
That/DT
way/NN
,/,
Mr./NNP
Collins/NNP
says/VBZ
,/,
``/``
We/PRP
did/VBD
n't/RB
have/VB
to/TO
sell/VB
securities/NNS
in/IN
a/DT
sloppy/JJ
market/NN
./.
''/''
When/WRB
the/DT
market/NN
stabilized/VBN
,/,
he/PRP
added/VBD
,/,
the/DT
firm/NN
sold/VBD
the/DT
bonds/NNS
and/CC
quickly/RB
paid/VBD
the/DT
loans/NNS
back/RB
./.
Tom/NNP
Herman/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Amcore/NNP
Financial/NNP
Inc./NNP
said/VBD
it/PRP
agreed/VBD
to/TO
acquire/VB
Central/NNP
of/IN
Illinois/NNP
Inc./NNP
in/IN
a/DT
stock/NN
swap/NN
./.
Shareholders/NNS
of/IN
Central/NNP
,/,
a/DT
bank/NN
holding/VBG
company/NN
based/VBN
in/IN
Sterling/NNP
,/,
Ill./NNP
,/,
will/MD
receive/VB
Amcore/NNP
stock/NN
equal/JJ
to/TO
10/CD
times/NNS
Central/NNP
's/POS
1989/CD
earnings/NNS
,/,
Amcore/NNP
said/VBD
./.
For/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
1989/CD
,/,
Central/NNP
earned/VBD
$/$
2/CD
million/CD
./.
Amcore/NNP
,/,
also/RB
a/DT
bank/NN
holding/VBG
company/NN
,/,
has/VBZ
assets/NNS
of/IN
$/$
1.06/CD
billion/CD
./.
Central/NNP
's/POS
assets/NNS
are/VBP
$/$
240/CD
million/CD
./.
its/PRP$
centennial/NN
year/NN
,/,
The/DT
Wall/NNP
Street/NNP
Journal/NNP
will/MD
report/VB
events/NNS
of/IN
the/DT
past/JJ
century/NN
that/DT
stand/VBP
as/IN
milestones/NNS
of/IN
American/JJ
business/NN
history/NN
./.
SOFT/JJ
CONTACT/NN
LENSES/NNS
WON/VBP
federal/JJ
blessing/NN
on/IN
March/NNP
18/CD
,/,
1971/CD
,/,
and/CC
quickly/RB
became/VBD
eye/NN
openers/NNS
for/IN
their/PRP$
makers/NNS
./.
The/DT
Food/NNP
and/CC
Drug/NNP
Administration/NNP
that/DT
day/NN
said/VBD
Bausch/NNP
&/CC
Lomb/NNP
could/MD
start/VB
selling/VBG
them/PRP
in/IN
the/DT
U.S/NNP
./.
The/DT
cornflake-size/JJ
product/NN
was/VBD
more/RBR
comfortable/JJ
and/CC
less/RBR
prone/JJ
to/TO
falling/VBG
out/RB
than/IN
hard/JJ
contact/NN
lenses/NNS
,/,
which/WDT
had/VBD
been/VBN
around/IN
since/IN
1939/CD
./.
Bausch/NNP
&/CC
Lomb/NNP
sold/VBD
the/DT
softies/NNS
under/IN
a/DT
sublicense/NN
from/IN
National/NNP
Patent/NNP
Development/NNP
,/,
which/WDT
had/VBD
gained/VBN
the/DT
rights/NNS
from/IN
the/DT
Czechoslovakia/NNP
Academy/NNP
of/IN
Sciences/NNPS
./.
Otto/NNP
Wichterle/NNP
,/,
a/DT
Czech/NNP
,/,
invented/VBD
them/PRP
in/IN
1962/CD
./.
The/DT
plastic/JJ
lens/NN
wraps/VBZ
itself/PRP
over/IN
the/DT
cornea/NN
,/,
absorbing/VBG
eye/NN
moisture/NN
while/IN
permitting/VBG
oxygen/NN
to/TO
pass/VB
through/RB
./.
But/CC
the/DT
new/JJ
lens/NN
became/VBD
the/DT
eye/NN
of/IN
a/DT
storm/NN
./.
In/IN
September/NNP
1971/CD
California/NNP
officials/NNS
seized/VBD
``/``
bootlegged/VBN
''/''
lenses/NNS
--/:
made/VBN
by/IN
unlicensed/JJ
companies/NNS
--/:
after/IN
some/DT
showed/VBD
traces/NNS
of/IN
bacteria/NNS
./.
In/IN
October/NNP
doctors/NNS
were/VBD
debating/VBG
the/DT
product/NN
's/POS
safety/NN
,/,
some/DT
claiming/VBG
it/PRP
caused/VBD
infections/NNS
./.
And/CC
there/EX
were/VBD
Senate/NNP
hearings/NNS
on/IN
the/DT
questions/NNS
in/IN
July/NNP
1972/CD
./.
The/DT
product/NN
overcame/VBD
the/DT
bad/JJ
publicity/NN
and/CC
kept/VBD
evolving/VBG
./.
The/DT
early/JJ
soft/JJ
lenses/NNS
,/,
which/WDT
cost/VBD
$/$
300/CD
a/DT
set/NN
,/,
were/VBD
expected/VBN
to/TO
last/VB
for/IN
a/DT
year/NN
./.
In/IN
1983/CD
``/``
extended/JJ
wear/NN
''/''
versions/NNS
,/,
designed/VBN
to/TO
be/VB
worn/VBN
for/IN
30/CD
days/NNS
at/IN
a/DT
time/NN
,/,
wree/NN
offered/VBD
./.
Eighteen/CD
months/NNS
ago/RB
a/DT
``/``
disposable/JJ
''/''
seven-day/JJ
model/NN
bowed/VBD
;/:
a/DT
year/NN
's/POS
supply/NN
costs/VBZ
about/IN
$/$
500/CD
./.
Last/JJ
month/NN
the/DT
FDA/NNP
and/CC
Contact/NNP
Lens/NNP
Institute/NNP
cautioned/VBD
users/NNS
that/IN
serious/JJ
eye/NN
infections/NNS
could/MD
result/VB
from/IN
wearing/VBG
lenses/NNS
more/JJR
than/IN
seven/CD
days/NNS
at/IN
a/DT
stretch/NN
./.
Today/NN
20/CD
million/CD
of/IN
the/DT
25/CD
million/CD
Americans/NNPS
using/VBG
contact/NN
lenses/NNS
are/VBP
using/VBG
the/DT
soft/JJ
type/NN
./.
Including/VBG
the/DT
accesory/NN
eye/NN
care/NN
products/NNS
,/,
contacts/NNS
account/VBP
for/IN
$/$
2/CD
billion/CD
in/IN
annual/JJ
retail/JJ
sales/NNS
./.
Although/IN
Bausch/NNP
remains/VBZ
the/DT
leader/NN
among/IN
the/DT
six/CD
majors/NNS
,/,
Johnson/NNP
&/CC
Johnson/NNP
,/,
with/IN
its/PRP$
new/JJ
disposables/NNS
,/,
is/VBZ
coming/VBG
on/RB
fast/RB
./.
The/DT
roller-coaster/NN
stock/NN
market/NN
is/VBZ
making/VBG
life/NN
tougher/JJR
for/IN
small/JJ
companies/NNS
trying/VBG
to/TO
raise/VB
money/NN
./.
In/IN
the/DT
wake/NN
of/IN
Friday/NNP
's/POS
plunge/NN
and/CC
yesterday/NN
's/POS
rebound/NN
,/,
some/DT
companies/NNS
are/VBP
already/RB
postponing/VBG
deals/NNS
,/,
and/CC
others/NNS
wish/VBP
they/PRP
could/MD
./.
As/IN
in/IN
other/JJ
jittery/JJ
times/NNS
,/,
many/JJ
small/JJ
businesses/NNS
expect/VBP
a/DT
particularly/RB
rough/JJ
time/NN
raising/VBG
funds/NNS
as/IN
investors/NNS
shun/VBP
risky/JJ
deals/NNS
,/,
seeking/VBG
safety/NN
in/IN
bigger/JJR
companies/NNS
./.
Even/RB
if/IN
stock/NN
prices/NNS
fully/RB
recover/VBP
from/IN
Friday/NNP
's/POS
sharp/JJ
decline/NN
,/,
the/DT
unsettled/JJ
conditions/NNS
will/MD
frighten/VB
many/JJ
investors/NNS
./.
``/``
The/DT
implication/NN
of/IN
an/DT
unsettled/JJ
situation/NN
is/VBZ
that/IN
the/DT
thing/NN
could/MD
drop/VB
dramatically/RB
,/,
''/''
says/VBZ
Henry/NNP
Linsert/NNP
Jr./NNP
,/,
chairman/NN
of/IN
Martek/NNP
Corp./NNP
,/,
a/DT
four-year-old/JJ
biotechnology/NN
company/NN
that/WDT
is/VBZ
planning/VBG
a/DT
private/JJ
placement/NN
of/IN
stock/NN
./.
``/``
The/DT
more/JJR
variables/NNS
that/WDT
indicate/VBP
risk/NN
,/,
the/DT
more/JJR
the/DT
investor/NN
is/VBZ
going/VBG
to/TO
drive/VB
a/DT
hard/JJ
bargain/NN
./.
''/''
Earlier/RB
this/DT
month/NN
,/,
Staples/NNP
Inc./NNP
,/,
a/DT
Newton/NNP
,/,
Mass./NNP
,/,
office-supplies/NNS
discounter/NN
,/,
said/VBD
it/PRP
would/MD
accelerate/VB
expansion/NN
plans/NNS
nationwide/JJ
and/CC
offer/VB
more/JJR
of/IN
its/PRP$
stock/NN
to/TO
the/DT
public/NN
./.
At/IN
the/DT
time/NN
,/,
its/PRP$
shares/NNS
were/VBD
selling/VBG
above/IN
their/PRP$
initial/JJ
offering/NN
price/NN
of/IN
$/$
19/CD
,/,
and/CC
bankers/NNS
believed/VBD
Staples/NNP
would/MD
sell/VB
new/JJ
stock/NN
without/IN
a/DT
hitch/NN
./.
But/CC
with/IN
the/DT
company/NN
's/POS
shares/NNS
standing/VBG
at/IN
$/$
15/CD
yesterday/NN
,/,
a/DT
new/JJ
offering/NN
seems/VBZ
unlikely/JJ
,/,
company/NN
officials/NNS
say/VBP
./.
Business/NN
,/,
however/RB
,/,
continues/VBZ
to/TO
be/VB
``/``
robust/JJ
,/,
''/''
and/CC
the/DT
stock/NN
market/NN
has/VBZ
n't/RB
affected/VBN
the/DT
concern/NN
's/POS
expansion/NN
plans/NNS
,/,
says/VBZ
Todd/NNP
Krasnow/NNP
,/,
a/DT
senior/JJ
executive/NN
./.
Other/JJ
companies/NNS
figure/VBP
they/PRP
ca/MD
n't/RB
avoid/VB
the/DT
market/NN
./.
``/``
We/PRP
have/VBP
capital/NN
requirements/NNS
,/,
''/''
says/VBZ
Mr./NNP
Linsert/NNP
,/,
``/``
so/IN
we/PRP
have/VBP
to/TO
go/VB
ahead/RB
''/''
with/IN
a/DT
planned/JJ
$/$
1.5/CD
billion/CD
private/JJ
placement/NN
./.
Unless/IN
the/DT
market/NN
goes/VBZ
right/RB
back/RB
up/RB
,/,
he/PRP
says/VBZ
,/,
``/``
it/PRP
may/MD
take/VB
us/PRP
six/CD
to/TO
nine/CD
months/NNS
to/TO
find/VB
the/DT
money/NN
,/,
instead/RB
of/IN
three/CD
./.
''/''
And/CC
the/DT
Columbia/NNP
,/,
Md./NNP
,/,
company/NN
may/MD
have/VB
to/TO
settle/VB
for/IN
a/DT
lower/JJR
price/NN
,/,
he/PRP
adds/VBZ
./.
Life/NN
is/VBZ
particularly/RB
nerve-racking/JJ
for/IN
companies/NNS
that/WDT
had/VBD
planned/VBN
to/TO
go/VB
public/NN
this/DT
week/NN
./.
Hand-holding/NN
is/VBZ
becoming/VBG
an/DT
investment-banking/NN
job/NN
requirement/NN
./.
Robertson/NNP
,/,
Stephens/NNP
&/CC
Co./NNP
,/,
a/DT
San/NNP
Francisco/NNP
investment/NN
banking/NN
concern/NN
,/,
has/VBZ
a/DT
client/NN
that/WDT
looked/VBD
forward/RB
to/TO
making/VBG
its/PRP$
initial/JJ
public/NN
offering/NN
yesterday/NN
./.
Officers/NNS
of/IN
the/DT
company/NN
,/,
a/DT
health-care/NN
concern/NN
,/,
``/``
were/VBD
very/RB
discouraged/JJ
on/IN
Friday/NNP
and/CC
felt/VBD
they/PRP
should/MD
n't/RB
go/VB
public/JJ
;/:
we/PRP
felt/VBD
they/PRP
should/MD
,/,
''/''
says/VBZ
Sanford/NNP
Robertson/NNP
,/,
partner/NN
in/IN
the/DT
banking/NN
concern/NN
./.
As/IN
the/DT
market/NN
dropped/VBD
Friday/NNP
,/,
Robertson/NNP
Stephens/NNP
slashed/VBD
the/DT
value/NN
of/IN
the/DT
offering/NN
by/IN
7/CD
%/NN
./.
Yesterday/NN
,/,
when/WRB
similar/JJ
securities/NNS
rebounded/NN
,/,
it/PRP
bumped/VBD
the/DT
valuation/NN
up/RP
again/RB
./.
As/IN
of/IN
late/JJ
yesterday/NN
,/,
the/DT
IPO/NN
was/VBD
still/RB
on/RP
./.
For/IN
many/JJ
,/,
the/DT
situation/NN
is/VBZ
especially/RB
discouraging/JJ
because/IN
the/DT
market/NN
for/IN
IPOs/NNS
was/VBD
showing/VBG
signs/NNS
of/IN
strengthening/VBG
after/IN
several/JJ
years/NNS
of/IN
weakness/NN
./.
``/``
We/PRP
were/VBD
just/RB
beginning/VBG
to/TO
look/VB
at/IN
the/DT
increase/NN
in/IN
IPOs/NNS
,/,
seeing/VBG
the/DT
light/NN
at/IN
the/DT
end/NN
of/IN
the/DT
tunnel/NN
,/,
''/''
says/VBZ
Frank/NNP
Kline/NNP
Jr./NNP
,/,
partner/NN
in/IN
Lambda/NNP
Funds/NNPS
,/,
a/DT
Beverly/NNP
Hills/NNPS
,/,
Calif./NNP
,/,
venture/JJ
capital/NN
concern/NN
./.
``/``
But/CC
the/DT
tunnel/NN
's/VBZ
just/RB
gotten/VBN
longer/RBR
./.
''/''
Companies/NNS
planning/VBG
to/TO
go/VB
public/JJ
``/``
are/VBP
definitely/RB
taking/VBG
a/DT
second/JJ
look/NN
,/,
''/''
says/VBZ
Allen/NNP
Hadhazy/NNP
,/,
senior/JJ
analyst/NN
at/IN
the/DT
Institute/NNP
for/IN
Econometric/NNP
Research/NNP
,/,
Fort/NNP
Lauderdale/NNP
,/,
Fla./NNP
,/,
which/WDT
publishes/VBZ
the/DT
New/NNP
Issues/NNPS
newsletter/NN
on/IN
IPOs/NNS
./.
He/PRP
calculates/VBZ
that/IN
the/DT
recent/JJ
market/NN
slide/NN
translated/VBN
into/IN
a/DT
5/CD
%/NN
to/TO
7/CD
%/NN
reduction/NN
in/IN
IPO/NN
proceeds/NNS
to/TO
companies/NNS
./.
Many/JJ
companies/NNS
are/VBP
hesitating/VBG
./.
Exabyte/NNP
Corp./NNP
had/VBD
been/VBN
planning/VBG
to/TO
sell/VB
10/CD
%/NN
of/IN
its/PRP$
stock/NN
this/DT
week/NN
in/IN
an/DT
IPO/NN
that/WDT
would/MD
raise/VB
up/IN
to/TO
$/$
28.5/CD
million/CD
./.
But/CC
now/RB
,/,
Peter/NNP
Behrendt/NNP
,/,
president/NN
,/,
says/VBZ
,/,
``/``
We/PRP
're/VBP
making/VBG
decisions/NNS
on/IN
a/DT
day-to-day/JJ
basis/NN
./.
''/''
Debt-free/JJ
and/CC
profitable/JJ
,/,
the/DT
Boulder/NNP
,/,
Colo./NNP
,/,
computer-products/NNS
concern/NN
could/MD
borrow/VB
funds/NNS
if/IN
it/PRP
decides/VBZ
against/IN
an/DT
IPO/NN
now/RB
,/,
he/PRP
says/VBZ
./.
KnowledgeWare/NNP
Inc./NNP
,/,
an/DT
Atlanta/NNP
computer-software/NN
concern/NN
,/,
says/VBZ
it/PRP
is/VBZ
still/RB
planning/VBG
to/TO
go/VB
ahead/RB
with/IN
its/PRP$
IPO/NN
this/DT
week/NN
or/CC
next/JJ
--/:
unless/IN
conditions/NNS
change/VBP
./.
``/``
It/PRP
's/VBZ
a/DT
wait-and-see/JJ
situation/NN
right/RB
now/RB
,/,
''/''
says/VBZ
Terry/NNP
McGowan/NNP
,/,
president/NN
./.
Delayed/JJ
financings/NNS
also/RB
would/MD
affect/VB
the/DT
operations/NNS
of/IN
many/JJ
companies/NNS
./.
Sierra/NNP
Tucson/NNP
Cos./NNP
,/,
a/DT
Tucson/NNP
,/,
Ariz./NNP
,/,
operator/NN
of/IN
addiction-treatment/NN
centers/NNS
,/,
has/VBZ
a/DT
planned/JJ
doubling/NN
of/IN
capacity/NN
riding/VBG
on/IN
an/DT
IPO/NN
scheduled/VBN
for/IN
next/JJ
week/NN
./.
William/NNP
O'Donnell/NNP
,/,
president/NN
,/,
says/VBZ
he/PRP
still/RB
thinks/VBZ
the/DT
IPO/NN
will/MD
succeed/VB
./.
If/IN
it/PRP
does/VBZ
n't/RB
,/,
he/PRP
says/VBZ
,/,
the/DT
company/NN
would/MD
have/VB
to/TO
change/VB
its/PRP$
expansion/NN
timetable/NN
./.
But/CC
the/DT
market/NN
turmoil/NN
could/MD
be/VB
partially/RB
beneficial/JJ
for/IN
some/DT
small/JJ
businesses/NNS
./.
In/IN
a/DT
sagging/VBG
market/NN
,/,
the/DT
Federal/NNP
Reserve/NNP
System/NNP
``/``
might/MD
flood/VB
the/DT
market/NN
with/IN
funds/NNS
,/,
and/CC
that/DT
should/MD
bring/VB
interest/NN
rates/NNS
down/RB
,/,
''/''
says/VBZ
Leonard/NNP
T./NNP
Anctil/NNP
,/,
vice/NN
president/NN
of/IN
the/DT
Bank/NNP
of/IN
New/NNP
England/NNP
,/,
Boston/NNP
./.
James/NNP
G./NNP
Zafris/NNP
,/,
president/NN
of/IN
Danvers/NNP
Savings/NNPS
Bank/NNP
,/,
Danvers/NNP
,/,
Mass./NNP
,/,
says/VBZ
the/DT
market/NN
turmoil/NN
``/``
is/VBZ
an/DT
absolute/JJ
non-event/NN
for/IN
small/JJ
business/NN
./.
''/''
For/IN
small/JJ
companies/NNS
,/,
he/PRP
says/VBZ
,/,
interest/NN
rates/NNS
are/VBP
far/RB
more/RBR
important/JJ
than/IN
what/WP
happens/VBZ
on/IN
stock/NN
exchanges/NNS
./.
Mr./NNP
Zafris/NNP
thinks/VBZ
rates/NNS
are/VBP
heading/VBG
down/RB
,/,
helping/VBG
small/JJ
companies/NNS
./.
Peter/NNP
Drake/NNP
,/,
biotechnology/NN
analyst/NN
for/IN
Vector/NNP
Securities/NNPS
International/NNP
,/,
Chicago/NNP
,/,
thinks/VBZ
market/NN
uncertainty/NN
may/MD
encourage/VB
small/JJ
companies/NNS
to/TO
form/VB
more/RBR
strategic/JJ
alliances/NNS
with/IN
big/JJ
corporations/NNS
./.
Partly/RB
because/IN
the/DT
1987/CD
market/NN
crash/NN
made/VBD
it/PRP
harder/JJR
for/IN
them/PRP
to/TO
find/VB
financing/NN
,/,
many/JJ
high-technology/NN
concerns/NNS
have/VBP
made/VBN
such/JJ
alliances/NNS
recently/RB
./.
Some/DT
even/RB
see/VBP
a/DT
silver/NN
lining/NN
in/IN
the/DT
dark/JJ
clouds/NNS
./.
Alan/NNP
Wells/NNP
,/,
president/NN
of/IN
Bollinger/NNP
,/,
Wells/NNP
,/,
Lett/NNP
&/CC
Co./NNP
,/,
a/DT
New/NNP
York/NNP
merger/NN
specialist/NN
,/,
thinks/VBZ
panicky/JJ
investors/NNS
may/MD
lose/VB
their/PRP$
enthusiasm/NN
for/IN
leveraged/JJ
buy-out/NN
and/CC
giant/JJ
takeover/NN
deals/NNS
./.
Instead/RB
,/,
they/PRP
could/MD
turn/VB
to/TO
investing/VBG
in/IN
smaller/JJR
deals/NNS
involving/VBG
smaller/JJR
companies/NNS
,/,
he/PRP
says/VBZ
./.
And/CC
William/NNP
E./NNP
Wetzel/NNP
Jr./NNP
,/,
a/DT
University/NNP
of/IN
New/NNP
Hampshire/NNP
management/NN
professor/NN
and/CC
director/NN
of/IN
Venture/NNP
Capital/NNP
Network/NNP
Inc./NNP
,/,
says/VBZ
the/DT
market/NN
's/POS
gyrations/NNS
will/MD
underline/VB
the/DT
investors/NNS
'/POS
lack/NN
of/IN
control/NN
in/IN
big/JJ
stock/NN
investments/NNS
./.
This/DT
will/MD
add/VB
to/TO
the/DT
appeal/NN
of/IN
small/JJ
business/NN
,/,
he/PRP
says/VBZ
,/,
where/WRB
investors/NNS
often/RB
have/VBP
a/DT
degree/NN
of/IN
influence/NN
./.
Bay/NNP
Financial/NNP
Corp./NNP
,/,
hurt/VBN
by/IN
high/JJ
debts/NNS
and/CC
deteriorating/VBG
real/JJ
estate/NN
investments/NNS
,/,
reported/VBD
a/DT
wider/JJR
loss/NN
for/IN
the/DT
fourth/JJ
quarter/NN
and/CC
said/VBD
it/PRP
might/MD
be/VB
forced/VBN
to/TO
seek/VB
a/DT
bankruptcy-court/NN
reorganization/NN
if/IN
it/PRP
ca/MD
n't/RB
renegotiate/VB
its/PRP$
borrowings/NNS
./.
Bay/NNP
said/VBD
a/DT
``/``
substantial/JJ
part/NN
''/''
of/IN
its/PRP$
debt/NN
outstanding/JJ
is/VBZ
in/IN
default/NN
as/IN
a/DT
result/NN
of/IN
inability/NN
to/TO
sell/VB
certain/JJ
properties/NNS
quickly/RB
and/CC
lower-than-expected/JJ
prices/NNS
for/IN
sales/NNS
made/VBN
./.
The/DT
company/NN
said/VBD
its/PRP$
real/JJ
estate/NN
portfolio/NN
is/VBZ
``/``
highly/RB
leveraged/JJ
,/,
''/''
while/IN
about/IN
two-thirds/NNS
of/IN
its/PRP$
investments/NNS
are/VBP
n't/RB
income-producing/JJ
./.
Thus/RB
it/PRP
is/VBZ
coming/VBG
up/RP
short/RB
on/IN
a/DT
big/JJ
bet/NN
that/IN
quick/JJ
sales/NNS
at/IN
higher/JJR
prices/NNS
would/MD
enable/VB
it/PRP
to/TO
keep/VB
up/RB
with/IN
mortgage/NN
and/CC
other/JJ
debt/NN
payments/NNS
./.
According/VBG
to/TO
its/PRP$
latest/JJS
annual/JJ
report/NN
,/,
about/IN
a/DT
quarter/NN
of/IN
the/DT
company/NN
's/POS
holdings/NNS
are/VBP
in/IN
Massachusetts/NNP
,/,
in/IN
the/DT
midst/NN
of/IN
a/DT
real-estate/NN
slump/NN
./.
The/DT
company/NN
said/VBD
it/PRP
had/VBD
a/DT
net/JJ
loss/NN
in/IN
its/PRP$
fourth/JJ
quarter/NN
ended/VBN
June/NNP
30/CD
of/IN
$/$
36.2/CD
million/CD
,/,
or/CC
$/$
9.33/CD
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
13.1/CD
million/CD
./.
A/DT
year/NN
earlier/RB
,/,
the/DT
company/NN
had/VBD
a/DT
loss/NN
of/IN
$/$
10.8/CD
million/CD
,/,
or/CC
$/$
3.04/CD
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
10.8/CD
million/CD
./.
For/IN
the/DT
year/NN
,/,
it/PRP
had/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
62/CD
million/CD
,/,
or/CC
$/$
15.97/CD
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
44.3/CD
million/CD
./.
In/IN
the/DT
previous/JJ
year/NN
,/,
it/PRP
had/VBD
a/DT
loss/NN
of/IN
$/$
22.5/CD
million/CD
,/,
or/CC
$/$
6.52/CD
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
41.1/CD
million/CD
./.
Although/IN
it/PRP
is/VBZ
having/VBG
serious/JJ
cash-flow/NN
problems/NNS
,/,
Bay/NNP
said/VBD
the/DT
fair-market/JJ
value/NN
of/IN
its/PRP$
holdings/NNS
,/,
minus/CC
debt/NN
,/,
was/VBD
equal/JJ
to/TO
$/$
6.02/CD
a/DT
share/NN
at/IN
June/NNP
30/CD
based/VBN
on/IN
a/DT
recent/JJ
appraisal/NN
./.
Book/NN
value/NN
per/IN
share/NN
,/,
which/WDT
is/VBZ
based/VBN
on/IN
investments/NNS
at/IN
cost/NN
,/,
was/VBD
a/DT
negative/JJ
$/$
6.69/CD
a/DT
share/NN
./.
A/DT
year/NN
earlier/RB
,/,
fair-market/JJ
value/NN
per/IN
share/NN
was/VBD
$/$
26.02/CD
and/CC
book/NN
value/NN
was/VBD
$/$
9.43/CD
a/DT
share/NN
./.
Annualized/VBN
interest/NN
rates/NNS
on/IN
certain/JJ
investments/NNS
as/IN
reported/VBN
by/IN
the/DT
Federal/NNP
Reserve/NNP
Board/NNP
on/IN
a/DT
weekly-average/JJ
basis/NN
:/:
1989/CD
and/CC
Wednesday/NNP
October/NNP
4/CD
,/,
1989/CD
./.
c-Yields/NNS
,/,
adjusted/VBN
for/IN
constant/JJ
maturity/NN
./.
TRW/NNP
Inc./NNP
reported/VBD
a/DT
12/CD
%/NN
decline/NN
in/IN
third-quarter/JJ
net/JJ
income/NN
,/,
but/CC
the/DT
company/NN
said/VBD
that/IN
excluding/VBG
unusual/JJ
gains/NNS
in/IN
both/DT
quarters/NNS
,/,
operating/NN
profit/NN
rose/VBD
16/CD
%/NN
./.
The/DT
electronics/NNS
,/,
automotive/JJ
and/CC
aerospace/NN
concern/NN
said/VBD
third-quarter/JJ
net/NN
was/VBD
$/$
60/CD
million/CD
,/,
or/CC
98/CD
cents/NNS
a/DT
share/NN
,/,
down/RB
from/IN
$/$
68/CD
million/CD
,/,
or/CC
$/$
1.11/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
./.
Share/NN
earnings/NNS
are/VBP
reported/VBN
on/IN
a/DT
fully/RB
diluted/JJ
basis/NN
,/,
by/IN
company/NN
tradition/NN
./.
Results/NNS
for/IN
the/DT
1988/CD
quarter/NN
included/VBD
a/DT
gain/NN
of/IN
$/$
1.05/CD
a/DT
share/NN
from/IN
sale/NN
of/IN
the/DT
Reda/NNP
Pump/NNP
and/CC
Oilwell/NNP
Cable/NNP
units/NNS
,/,
partly/RB
offset/VBN
by/IN
a/DT
charge/NN
of/IN
69/CD
cents/NNS
a/DT
share/NN
for/IN
recall/NN
of/IN
faulty/JJ
truck/NN
steering/NN
systems/NNS
./.
The/DT
latest/JJS
quarter/NN
included/VBD
a/DT
gain/NN
of/IN
11/CD
cents/NNS
a/DT
share/NN
as/IN
a/DT
partial/JJ
reversal/NN
of/IN
the/DT
recall/NN
charge/NN
,/,
because/IN
the/DT
reserve/NN
established/VBN
last/JJ
year/NN
exceeded/VBD
the/DT
actual/JJ
recall/NN
costs/NNS
./.
Sales/NNS
for/IN
the/DT
quarter/NN
rose/VBD
8.3/CD
%/NN
to/TO
$/$
1.79/CD
billion/CD
,/,
from/IN
$/$
1.65/CD
billion/CD
,/,
with/IN
all/DT
three/CD
major/JJ
product/NN
groups/NNS
reporting/VBG
gains/NNS
./.
The/DT
company/NN
said/VBD
aerospace/NN
and/CC
defense/NN
sales/NNS
were/VBD
up/IN
2/CD
%/NN
for/IN
the/DT
quarter/NN
to/TO
$/$
802/CD
million/CD
,/,
and/CC
operating/NN
profit/NN
climbed/VBD
6/CD
%/NN
to/TO
$/$
61/CD
million/CD
,/,
mainly/RB
because/IN
of/IN
improved/JJ
program/NN
performance/NN
in/IN
spacecraft/NN
and/CC
advanced-technology/NN
contracts/NNS
./.
Automotive/JJ
sales/NNS
jumped/VBD
16/CD
%/NN
to/TO
$/$
791/CD
million/CD
,/,
mainly/RB
because/IN
of/IN
higher/JJR
sales/NNS
of/IN
air/NN
bags/NNS
and/CC
other/JJ
passenger/NN
restraint/NN
systems/NNS
,/,
TRW/NNP
said/VBD
./.
The/DT
group/NN
had/VBD
an/DT
operating/NN
profit/NN
of/IN
$/$
65/CD
million/CD
,/,
against/IN
a/DT
loss/NN
of/IN
$/$
13/CD
million/CD
a/DT
year/NN
earlier/RB
./.
However/RB
,/,
excluding/VBG
the/DT
year-earlier/JJ
charge/NN
for/IN
recall/NN
of/IN
steering/NN
gear/NN
,/,
operating/NN
profit/NN
in/IN
the/DT
latest/JJS
quarter/NN
declined/VBD
14/CD
%/NN
,/,
reflecting/VBG
higher/JJR
start-up/NN
and/CC
product/NN
development/NN
expenses/NNS
in/IN
passenger-restraint/NN
systems/NNS
./.
Materials/NNS
and/CC
production/NN
costs/NNS
also/RB
rose/VBD
,/,
TRW/NNP
said/VBD
./.
The/DT
information/NN
systems/NNS
segment/NN
had/VBD
a/DT
44/CD
%/NN
jump/NN
sales/NNS
to/TO
$/$
196/CD
million/CD
./.
An/DT
acquisition/NN
accounted/VBD
for/IN
half/PDT
the/DT
sales/NNS
rise/NN
,/,
TRW/NNP
said/VBD
./.
Operating/NN
profit/NN
rose/VBD
threefold/RB
to/TO
$/$
18/CD
million/CD
,/,
from/IN
$/$
6/CD
million/CD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
TRW/NNP
's/POS
net/NN
was/VBD
$/$
199/CD
million/CD
,/,
or/CC
$/$
3.22/CD
a/DT
share/NN
,/,
down/RB
3/CD
%/NN
from/IN
$/$
205/CD
million/CD
,/,
or/CC
$/$
3.33/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
./.
Sales/NNS
rose/VBD
2.9/CD
%/NN
to/TO
$/$
5.42/CD
billion/CD
,/,
from/IN
$/$
5.27/CD
billion/CD
./.
a/DT
tragicomic/JJ
monologue/NN
by/IN
an/DT
idealistic/JJ
,/,
not/RB
unheroic/JJ
,/,
though/IN
sadly/RB
self-deceived/JJ
English/JJ
butler/NN
in/IN
his/PRP$
sixties/NNS
--/:
proceeds/VBZ
as/IN
if/IN
the/DT
realistic/JJ
English/JJ
novel/NN
of/IN
manners/NNS
,/,
like/IN
Britannia/NNP
herself/PRP
,/,
still/RB
ruled/VBD
the/DT
waves/NNS
./.
In/IN
fact/NN
,/,
Kazuo/NNP
Ishiguro/NNP
's/POS
``/``
The/DT
Remains/NNS
of/IN
the/DT
Day/NN
''/''
(/(
Knopf/NNP
,/,
245/CD
pages/NNS
,/,
$/$
18.95/CD
both/DT
an/DT
homage/NN
to/TO
traditional/JJ
English/JJ
forms/NNS
and/CC
a/DT
dramatic/JJ
critique/NN
of/IN
them/PRP
./.
It/PRP
implies/VBZ
that/IN
the/DT
British/NNP
Empire/NNP
was/VBD
rooted/VBN
in/IN
its/PRP$
subjects/NNS
'/POS
minds/NNS
,/,
manners/NNS
and/CC
morals/NNS
,/,
and/CC
argues/VBZ
,/,
tacitly/RB
,/,
that/IN
its/PRP$
self-destructive/JJ
flaws/NNS
were/VBD
embodied/VBN
in/IN
the/DT
defensive/JJ
snobbery/NN
,/,
willful/JJ
blindness/NN
,/,
role-playing/NN
and/CC
especially/RB
the/DT
locutions/NNS
of/IN
its/PRP$
domestic/JJ
servants/NNS
./.
As/IN
the/DT
narrator/NN
Stevens/NNP
,/,
the/DT
solitary/JJ
butler/NN
of/IN
Darlington/NNP
Hall/NNP
,/,
mulls/VBZ
over/IN
such/JJ
hallowed/JJ
terms/NNS
as/IN
``/``
greatness/NN
,/,
''/''
``/``
dignity/NN
,/,
''/''
``/``
service/NN
''/''
and/CC
``/``
loyalty/NN
,/,
''/''
we/PRP
see/VBP
how/WRB
pious/JJ
cant/NN
subverts/VBZ
the/DT
soul/NN
./.
Stevens/NNP
's/POS
dutiful/JJ
conflation/NN
of/IN
the/DT
public/JJ
and/CC
private/JJ
realms/NNS
--/:
like/IN
his/PRP$
beloved/JJ
master/NN
's/POS
--/:
destroys/VBZ
all/DT
it/PRP
was/VBD
designed/VBN
to/TO
preserve/VB
./.
Such/JJ
armor/NN
crushes/VBZ
the/DT
soldier/NN
./.
The/DT
mask/NN
cuts/VBZ
to/TO
the/DT
quick/JJ
./.
It/PRP
's/VBZ
1956/CD
,/,
the/DT
year/NN
the/DT
Suez/NNP
crisis/NN
marked/VBD
the/DT
final/JJ
end/NN
of/IN
Empire/NN
./.
As/IN
he/PRP
stands/VBZ
on/IN
a/DT
hill/NN
at/IN
the/DT
beginning/NN
of/IN
a/DT
six-day/JJ
motor/NN
expedition/NN
from/IN
Oxfordshire/NNP
to/TO
Cornwall/NNP
,/,
where/WRB
a/DT
former/JJ
housekeeper/NN
resides/VBZ
,/,
perhaps/RB
the/DT
victim/NN
of/IN
an/DT
unhappy/JJ
20-year/JJ
marriage/NN
,/,
perhaps/RB
(/(
he/PRP
hopes/VBZ
with/IN
more/JJR
fervor/NN
than/IN
he/PRP
will/MD
ever/RB
acknowledge/VB
)/)
not/RB
disinclined/JJ
to/TO
return/VB
to/TO
domestic/JJ
service/NN
,/,
Stevens/NNP
surveys/NNS
the/DT
view/NN
and/CC
thereby/RB
provides/VBZ
a/DT
self-portrait/NN
,/,
a/DT
credo/NN
and/CC
the/DT
author/NN
's/POS
metaphor/NN
for/IN
the/DT
aesthetic/NN
of/IN
the/DT
novel/NN
we/PRP
're/VBP
reading/VBG
:/:
``/``
We/PRP
call/VBP
this/DT
land/NN
of/IN
ours/JJ
Great/NNP
Britain/NNP
,/,
and/CC
there/EX
may/MD
be/VB
those/DT
who/WP
believe/VBP
this/DT
a/DT
somewhat/RB
immodest/JJ
practice/NN
./.
Yet/RB
I/PRP
would/MD
venture/VB
that/IN
the/DT
landscape/NN
of/IN
our/PRP$
country/NN
alone/RB
would/MD
justify/VB
the/DT
use/NN
of/IN
this/DT
lofty/JJ
adjective/NN
.../:
./.
It/PRP
is/VBZ
the/DT
very/JJ
lack/NN
of/IN
obvious/JJ
drama/NN
or/CC
spectacle/NN
that/WDT
sets/VBZ
the/DT
beauty/NN
of/IN
our/PRP$
land/NN
apart/RB
./.
What/WP
is/VBZ
pertinent/JJ
is/VBZ
the/DT
calmness/NN
of/IN
that/DT
beauty/NN
,/,
its/PRP$
sense/NN
of/IN
restraint/NN
./.
It/PRP
is/VBZ
as/IN
though/IN
the/DT
land/NN
knows/VBZ
of/IN
its/PRP$
own/JJ
beauty/NN
,/,
of/IN
its/PRP$
own/JJ
greatness/NN
,/,
and/CC
feels/VBZ
no/DT
need/NN
to/TO
shout/VB
it/PRP
./.
In/IN
comparison/NN
,/,
the/DT
sorts/NNS
of/IN
sights/NNS
offered/VBN
in/IN
such/JJ
places/NNS
as/IN
Africa/NNP
and/CC
America/NNP
,/,
though/IN
undoubtedly/RB
very/RB
exciting/JJ
,/,
would/MD
,/,
I/PRP
am/VBP
sure/JJ
,/,
strike/VB
the/DT
objective/JJ
viewer/NN
as/IN
inferior/JJ
on/IN
account/NN
of/IN
their/PRP$
unseemly/JJ
demonstrativeness/NN
./.
''/''
An/DT
effusive/JJ
landscape/NN
?/.
An/DT
ill-mannered/JJ
mountain/NN
?/.
But/CC
let/VB
Stevens/NNP
continue/VB
in/IN
his/PRP$
unwitting/JJ
comic/JJ
manner/NN
his/PRP$
conscious/JJ
efforts/NNS
at/IN
``/``
banter/NN
''/''
always/RB
fail/VB
--/:
most/RBS
comically/RB
)/)
:/:
``/``
This/DT
whole/JJ
question/NN
is/VBZ
very/RB
akin/JJ
to/TO
the/DT
question/NN
that/WDT
has/VBZ
caused/VBN
much/JJ
debate/NN
in/IN
our/PRP$
profession/NN
over/IN
the/DT
years/NNS
:/:
what/WP
is/VBZ
a/DT
`/``
great/JJ
'/''
butler/NN
?/.
''/''
His/PRP$
answer/NN
is/VBZ
one/NN
``/``
possessed/VBN
of/IN
a/DT
dignity/NN
in/IN
keeping/VBG
with/IN
his/PRP$
position/NN
./.
''/''
Such/JJ
dignity/NN
``/``
has/VBZ
to/TO
do/VB
crucially/RB
with/IN
a/DT
butler/NN
's/POS
ability/NN
not/RB
to/TO
abandon/VB
the/DT
professional/JJ
being/NN
he/PRP
inhabits/VBZ
./.
''/''
He/PRP
``/``
will/MD
not/RB
be/VB
shaken/VBN
out/RB
by/IN
external/JJ
events/NNS
,/,
however/RB
surprising/JJ
,/,
alarming/JJ
or/CC
vexing/JJ
.../:
./.
Continentals/NNS
are/VBP
unable/JJ
to/TO
be/VB
butlers/NNS
because/IN
they/PRP
are/VBP
as/IN
a/DT
breed/NN
incapable/JJ
of/IN
the/DT
emotional/JJ
restraint/NN
which/WDT
only/RB
the/DT
English/JJ
race/NN
are/VBP
capable/JJ
of/IN
./.
''/''
Despite/IN
his/PRP$
racial/JJ
advantage/NN
,/,
to/TO
be/VB
a/DT
great/JJ
butler/NN
is/VBZ
a/DT
heroic/JJ
calling/NN
;/:
one/PRP
's/POS
pantry/NN
is/VBZ
``/``
not/RB
unlike/IN
general/NN
's/POS
headquarters/NN
during/IN
a/DT
battle/NN
./.
''/''
If/IN
,/,
for/IN
example/NN
,/,
in/IN
the/DT
midst/NN
of/IN
a/DT
great/JJ
social/JJ
occasion/NN
an/DT
international/JJ
conference/NN
on/IN
revising/VBG
the/DT
Versailles/NNP
Treaty/NNP
in/IN
1923/CD
one/PRP
's/POS
72-yearold/CD
father/NN
,/,
himself/PRP
a/DT
great/JJ
butler/NN
once/RB
,/,
should/MD
happen/VB
to/TO
die/VB
of/IN
a/DT
stroke/NN
,/,
one/PRP
must/MD
continue/VB
to/TO
serve/VB
the/DT
port/NN
:/:
``/``
Please/VB
do/VBP
n't/RB
think/VB
me/PRP
unduly/RB
improper/JJ
in/IN
not/RB
ascending/VBG
to/TO
see/VB
my/PRP$
father/NN
in/IN
his/PRP$
deceased/JJ
condition/NN
just/RB
at/IN
this/DT
moment/NN
./.
You/PRP
see/VBP
,/,
I/PRP
know/VBP
my/PRP$
father/NN
would/MD
have/VB
wished/VBD
me/PRP
to/TO
carry/VB
on/RB
just/RB
now/RB
./.
''/''
It/PRP
is/VBZ
this/DT
kind/NN
of/IN
dignity/NN
and/CC
restraint/NN
that/WDT
allows/VBZ
Stevens/NNP
to/TO
declare/VB
:/:
``/``
For/IN
all/DT
its/PRP$
sad/JJ
associations/NNS
,/,
whenever/WRB
I/PRP
recall/VBP
that/DT
evening/NN
today/NN
,/,
I/PRP
find/VBP
I/PRP
do/VBP
so/RB
with/IN
a/DT
large/JJ
sense/NN
of/IN
triumph/NN
./.
''/''
We/PRP
note/VBP
the/DT
imperial/JJ
public/JJ
word/NN
used/VBN
to/TO
deny/VB
private/JJ
rage/NN
and/CC
sorrow/NN
./.
That/IN
Stevens/NNP
himself/PRP
is/VBZ
not/RB
grotesque/JJ
or/CC
repellent/JJ
,/,
but/CC
funny/JJ
and/CC
sad/JJ
and/CC
enlightening/JJ
,/,
is/VBZ
entirely/RB
the/DT
author/NN
's/POS
triumph/NN
./.
Mr./NNP
Ishiguro/NNP
's/POS
ability/NN
to/TO
create/VB
a/DT
fallible/JJ
narrative/NN
voice/NN
that/WDT
permits/VBZ
him/PRP
to/TO
explore/VB
such/JJ
intertwining/VBG
domestic/JJ
,/,
cultural/JJ
and/CC
political/JJ
themes/NNS
was/VBD
abundantly/RB
clear/JJ
in/IN
his/PRP$
previous/JJ
novel/NN
,/,
``/``
An/DT
Artist/NN
of/IN
the/DT
Floating/JJ
World/NN
,/,
''/''
set/VBN
in/IN
Japan/NNP
after/IN
the/DT
war/NN
./.
Now/RB
shifting/VBG
his/PRP$
scene/NN
from/IN
the/DT
country/NN
he/PRP
left/VBD
at/IN
five/CD
to/TO
the/DT
England/NNP
he/PRP
has/VBZ
lived/VBN
in/IN
for/IN
nearly/RB
30/CD
years/NNS
,/,
he/PRP
has/VBZ
fashioned/VBN
a/DT
novel/NN
in/IN
the/DT
mode/NN
of/IN
Henry/NNP
James/NNP
and/CC
E.M./NNP
Forster/NNP
./.
With/IN
great/JJ
aplomb/NN
he/PRP
considers/VBZ
not/RB
only/RB
filial/JJ
devotion/NN
and/CC
(/(
utterly/RB
repressed/JJ
)/)
sexual/JJ
love/NN
,/,
but/CC
British/JJ
anti-Semitism/NNP
,/,
the/DT
gentry/NN
's/POS
impatience/NN
with/IN
democracy/NN
and/CC
support/NN
of/IN
Hitler/NNP
,/,
and/CC
the/DT
moral/JJ
problematics/NNS
of/IN
loyalty/NN
:/:
``/``
It/PRP
is/VBZ
,/,
in/IN
practice/NN
,/,
simply/RB
not/RB
possible/JJ
to/TO
adopt/VB
such/JJ
a/DT
critical/JJ
attitude/NN
towards/IN
an/DT
employer/NN
and/CC
at/IN
the/DT
same/JJ
time/NN
provide/VB
good/JJ
service/NN
.../:
./.
`/``
This/DT
employer/NN
embodies/VBZ
all/DT
that/IN
I/PRP
find/VBP
noble/JJ
and/CC
admirable/JJ
./.
I/PRP
will/MD
hereafter/RB
devote/VB
myself/PRP
to/TO
serving/VBG
him/PRP
./.
'/''
This/DT
is/VBZ
loyalty/NN
intelligently/RB
bestowed/VBN
./.
''/''
In/IN
the/DT
end/NN
,/,
after/IN
meeting/NN
with/IN
the/DT
former/JJ
housekeeper/NN
,/,
Stevens/NNP
sits/VBZ
by/IN
the/DT
seashore/NN
at/IN
dusk/NN
,/,
thinking/VBG
of/IN
her/PRP
and/CC
of/IN
his/PRP$
employer/NN
,/,
and/CC
declares/VBZ
``/``
I/PRP
trusted/VBD
./.
I/PRP
trusted/VBD
in/IN
his/PRP$
lordship/NN
's/POS
wisdom/NN
.../:
./.
I/PRP
ca/MD
n't/RB
even/RB
say/VB
I/PRP
made/VBD
my/PRP$
own/JJ
mistakes/NNS
./.
Really/RB
--/:
one/PRP
has/VBZ
to/TO
ask/VB
oneself/PRP
--/:
what/WP
dignity/NN
is/VBZ
there/RB
in/IN
that/DT
?/.
''/''
The/DT
loyal/JJ
servant/NN
has/VBZ
come/VBN
full/JJ
circle/NN
./.
What/WP
is/VBZ
greatness/NN
?/.
What/WP
is/VBZ
dignity/NN
?/.
We/PRP
understand/VB
such/JJ
rueful/JJ
wisdom/NN
must/MD
be/VB
retrospective/JJ
:/:
The/DT
owl/NN
of/IN
Minerva/NNP
only/RB
spreads/VBZ
her/PRP$
wings/NNS
at/IN
dusk/NN
./.
But/CC
as/IN
``/``
The/DT
Remains/NNS
of/IN
the/DT
Day/NN
''/''
so/RB
eloquently/RB
demonstrates/VBZ
with/IN
quiet/JJ
virtuosity/NN
,/,
such/JJ
wisdom/NN
can/MD
be/VB
movingly/RB
embodied/VBN
in/IN
art/NN
./.
Mr./NNP
Locke/NNP
teaches/VBZ
English/NNP
and/CC
comparative/JJ
literature/NN
at/IN
Columbia/NNP
University/NNP
./.
UGI/NNP
Corp./NNP
said/VBD
its/PRP$
AmeriGas/NNP
subsidiary/NN
completed/VBD
the/DT
previously/RB
announced/JJ
sale/NN
of/IN
its/PRP$
air/NN
separation/NN
plant/NN
and/CC
related/JJ
assets/NNS
in/IN
Waukesha/NNP
,/,
Wis./NNP
,/,
to/TO
AGA/NNP
Gas/NNP
Inc./NNP
,/,
Cleveland/NNP
./.
The/DT
price/NN
was/VBD
n't/RB
disclosed/VBN
./.
The/DT
transaction/NN
is/VBZ
part/NN
of/IN
UGI/NNP
's/POS
continuing/VBG
program/NN
to/TO
shed/VB
AmeriGas/NNP
's/POS
industrial/JJ
gas/NN
interests/NNS
and/CC
expand/VB
the/DT
subsidiary/NN
's/POS
propane/NN
business/NN
./.
Since/IN
June/NNP
,/,
AmeriGas/NNP
has/VBZ
netted/VBN
more/JJR
than/IN
$/$
100/CD
million/CD
from/IN
industrial/JJ
gas/NN
divestitures/NNS
and/CC
reinvested/VBD
more/JJR
than/IN
$/$
50/CD
million/CD
to/TO
acquire/VB
three/CD
propane/NN
distributors/NNS
./.
UGI/NNP
is/VBZ
a/DT
gas/NN
and/CC
electric/JJ
utility/NN
and/CC
distributes/VBZ
propane/NN
nationally/RB
through/IN
its/PRP$
AmeriGas/NNP
subsidiary/NN
./.
Stanislav/NNP
Ovcharenko/NNP
,/,
who/WP
represents/VBZ
the/DT
Soviet/JJ
airline/NN
Aeroflot/NNP
here/RB
,/,
has/VBZ
some/DT
visions/NNS
that/WDT
are/VBP
wild/JJ
even/RB
by/IN
the/DT
current/JJ
standards/NNS
of/IN
perestroika/FW
./.
In/IN
his/PRP$
office/NN
overlooking/VBG
the/DT
runway/NN
of/IN
Shannon/NNP
Airport/NNP
,/,
Mr./NNP
Ovcharenko/NNP
enthusiastically/RB
throws/VBZ
out/RP
what/WP
he/PRP
calls/VBZ
``/``
just/RB
ideas/NNS
''/''
:/:
First/RB
,/,
he/PRP
suggests/VBZ
,/,
GPA/NNP
Group/NNP
Ltd./NNP
,/,
the/DT
international/JJ
aircraft/NN
leasing/NN
company/NN
based/VBN
in/IN
Ireland/NNP
,/,
could/MD
lease/VB
some/DT
of/IN
its/PRP$
Boeing/NNP
jetliners/NNS
to/TO
the/DT
Soviet/JJ
airline/NN
./.
Then/RB
Aer/NNP
Lingus/NNP
,/,
the/DT
Irish/JJ
flag/NN
carrier/NN
,/,
could/MD
teach/VB
Aeroflot/NNP
pilots/NNS
to/TO
fly/VB
the/DT
Boeings/NNPS
,/,
and/CC
the/DT
fleet/NN
could/MD
be/VB
based/VBN
here/RB
at/IN
Shannon/NNP
Airport/NNP
./.
That/DT
's/VBZ
not/RB
all/DT
,/,
he/PRP
says/VBZ
./.
Aer/NNP
Rianta/NNP
,/,
the/DT
Irish/JJ
airport/NN
authority/NN
,/,
could/MD
build/VB
a/DT
cargo/NN
terminal/NN
in/IN
the/DT
Soviet/NNP
Union/NNP
./.
Aeroflot/NNP
could/MD
lease/VB
some/DT
of/IN
its/PRP$
cargo/NN
planes/NNS
to/TO
Aer/NNP
Lingus/NNP
,/,
through/IN
GPA/NNP
,/,
for/IN
a/DT
joint-venture/NN
cargo/NN
airline/NN
./.
And/CC
then/RB
there/EX
is/VBZ
his/PRP$
notion/NN
of/IN
an/DT
Irish-Soviet/JJ
charter/NN
airline/NN
to/TO
ferry/VB
Armenians/NNPS
to/TO
Los/NNP
Angeles/NNP
via/IN
Shannon/NNP
./.
Have/VBP
the/DT
freedoms/NNS
of/IN
glasnost/FW
gone/VBN
to/TO
Mr./NNP
Ovcharenko/NNP
's/POS
head/NN
?/.
Hardly/RB
./.
The/DT
Irish-Soviet/JJ
aviation/NN
connection/NN
is/VBZ
alive/JJ
and/CC
well/JJ
here/RB
at/IN
Shannon/NNP
Airport/NNP
./.
GPA/NNP
is/VBZ
indeed/RB
talking/VBG
about/IN
leasing/VBG
Western/JJ
planes/NNS
to/TO
Aeroflot/NNP
and/CC
even/RB
about/IN
buying/VBG
Soviet-built/JJ
Tupolev/NNP
204s/NNS
./.
Aer/NNP
Lingus/NNP
is/VBZ
in/IN
discussions/NNS
with/IN
the/DT
Soviet/JJ
carrier/NN
about/IN
a/DT
cargo/NN
venture/NN
and/CC
other/JJ
possibilities/NNS
./.
Aer/NNP
Rianta/NNP
already/RB
has/VBZ
so/RB
many/JJ
ventures/NNS
with/IN
Aeroflot/NNP
that/IN
its/PRP$
chief/JJ
executive/NN
is/VBZ
studying/VBG
Russian/NNP
./.
Unlikely/RB
as/IN
it/PRP
may/MD
seem/VB
,/,
tiny/JJ
,/,
politically/RB
neutral/JJ
Ireland/NNP
has/VBZ
penetrated/VBN
the/DT
mighty/JJ
Soviet/JJ
airline/NN
bureaucracy/NN
./.
And/CC
as/IN
Aeroflot/NNP
struggles/VBZ
to/TO
boost/VB
its/PRP$
service/NN
standards/NNS
,/,
upgrade/VB
its/PRP$
fleet/NN
and/CC
pursue/VB
commercial/JJ
opportunities/NNS
,/,
the/DT
Irish/JJ
aviation/NN
industry/NN
seems/VBZ
poised/VBN
to/TO
benefit/VB
./.
``/``
Irish/JJ
and/CC
Soviet/JJ
people/NNS
are/VBP
similar/JJ
,/,
''/''
says/VBZ
Mr./NNP
Ovcharenko/NNP
./.
``/``
They/PRP
look/VBP
the/DT
same/JJ
./.
They/PRP
're/VBP
very/RB
friendly/JJ
./.
''/''
Moreover/RB
,/,
he/PRP
says/VBZ
,/,
Irish/JJ
companies/NNS
are/VBP
small/JJ
but/CC
spunky/NN
./.
``/``
We/PRP
have/VBP
to/TO
study/VB
their/PRP$
experience/NN
very/RB
well/RB
,/,
''/''
he/PRP
says/VBZ
./.
``/``
We/PRP
must/MD
find/VB
any/DT
way/NN
to/TO
get/VB
business/NN
./.
''/''
The/DT
two/CD
groups/NNS
have/VBP
been/VBN
working/VBG
together/RB
since/IN
the/DT
late/JJ
1970s/NNS
,/,
long/RB
before/IN
Soviet/JJ
joint/NN
ventures/NNS
were/VBD
the/DT
rage/NN
in/IN
the/DT
West/NNP
./.
Aeroflot/NNP
carried/VBD
about/IN
125/CD
million/CD
passengers/NNS
last/JJ
year/NN
,/,
and/CC
Shannon/NNP
Airport/NNP
,/,
the/DT
airline/NN
's/POS
largest/JJS
transit/NN
airport/NN
outside/IN
the/DT
Soviet/NNP
Union/NNP
,/,
saw/VBD
1,400/CD
Aeroflot/NNP
flights/NNS
and/CC
250,000/CD
passengers/NNS
pass/VB
through/RB
./.
An/DT
apartment/NN
complex/NN
down/IN
the/DT
road/NN
is/VBZ
the/DT
crew-rest/NN
and/CC
staging/NN
area/NN
for/IN
more/JJR
than/IN
130/CD
Aeroflot/NNP
pilots/NNS
and/CC
flight/NN
attendants/NNS
./.
The/DT
airport/NN
's/POS
biggest/JJS
supplier/NN
of/IN
aircraft/NN
fuel/NN
is/VBZ
the/DT
Soviet/NNP
Union/NNP
./.
Tankers/NNS
from/IN
the/DT
Latvian/JJ
port/NN
of/IN
Ventspils/NNP
each/DT
year/NN
unload/VBP
25/CD
million/CD
gallons/NNS
of/IN
fuel/NN
into/IN
a/DT
special/JJ
tank/NN
farm/NN
at/IN
the/DT
airport/NN
./.
What/WP
Aeroflot/NNP
does/VBZ
n't/RB
pour/VB
into/IN
its/PRP$
own/JJ
gas-guzzling/JJ
Ilyushins/NNPS
is/VBZ
bartered/VBN
to/TO
the/DT
airport/NN
authority/NN
,/,
which/WDT
resells/VBZ
it/PRP
to/TO
11/CD
Western/JJ
carriers/NNS
including/VBG
Air/NNP
France/NNP
,/,
Trans/NNP
World/NNP
Airlines/NNPS
and/CC
Pakistan/NNP
International/NNP
Airlines/NNPS
./.
Aeroflot/NNP
thus/RB
pays/VBZ
its/PRP$
landing/NN
fees/NNS
,/,
ground-handling/NN
and/CC
catering/NN
bills/NNS
with/IN
fuel/NN
,/,
preserving/VBG
its/PRP$
hard/JJ
currency/NN
./.
That/DT
is/VBZ
n't/RB
all/DT
./.
Last/JJ
year/NN
,/,
the/DT
Irish/JJ
airport/NN
authority/NN
,/,
in/IN
a/DT
joint/JJ
venture/NN
with/IN
Aeroflot/NNP
,/,
opened/VBD
four/CD
hard-currency/JJ
duty-free/JJ
shops/NNS
at/IN
Moscow/NNP
's/POS
Sheremetyevo/NNP
Airport/NNP
./.
Aer/NNP
Rianta/NNP
now/RB
manages/VBZ
duty-free/JJ
sales/NNS
on/IN
all/DT
Aeroflot/NNP
international/JJ
flights/NNS
out/IN
of/IN
Moscow/NNP
./.
Duty-free/JJ
shops/NNS
in/IN
Leningrad/NNP
's/POS
Pulkova/NNP
Airport/NNP
opened/VBN
in/IN
July/NNP
,/,
and/CC
hard-currency/JJ
shops/NNS
in/IN
Leningrad/NNP
hotels/NNS
and/CC
on/IN
the/DT
Soviet-Finnish/JJ
frontier/NN
are/VBP
coming/VBG
soon/RB
./.
Aer/NNP
Rianta/NNP
is/VBZ
talking/VBG
about/IN
similar/JJ
joint/JJ
ventures/NNS
in/IN
Tashkent/NNP
and/CC
in/IN
Sochi/NNP
,/,
a/DT
Black/NNP
Sea/NNP
resort/NN
,/,
and/CC
even/RB
has/VBZ
a/DT
computer-assembly/NN
project/NN
cooking/VBG
with/IN
the/DT
Georgian/JJ
city/NN
of/IN
Tbilisi/NNP
./.
Aeroflot/NNP
's/POS
international/JJ
fleet/NN
of/IN
285/CD
planes/NNS
is/VBZ
being/VBG
repainted/VBN
and/CC
refurbished/VBN
at/IN
Shannon/NNP
Airport/NNP
./.
Thanks/NNS
to/TO
a/DT
new/JJ
air-traffic/NN
agreement/NN
and/CC
the/DT
ability/NN
of/IN
Irish/JJ
travel/NN
agents/NNS
to/TO
issue/VB
Aeroflot/JJ
tickets/NNS
,/,
tourists/NNS
here/RB
are/VBP
taking/VBG
advantage/NN
of/IN
Aeroflot/NNP
's/POS
reasonable/JJ
prices/NNS
to/TO
board/VB
flights/NNS
in/IN
Shannon/NNP
for/IN
holidays/NNS
in/IN
Havana/NNP
,/,
Kingston/NNP
and/CC
Mexico/NNP
City/NNP
./.
The/DT
round-trip/NN
fare/NN
to/TO
Havana/NNP
is/VBZ
410/CD
Irish/JJ
punts/NNS
$/$
578/CD
Jamaica/NNP
costs/VBZ
504/CD
punts/NNS
./.
A/DT
formal/JJ
blessing/NN
of/IN
sorts/NNS
was/VBD
bestowed/VBN
on/IN
this/DT
friendship/NN
in/IN
April/NNP
when/WRB
Mikhail/NNP
and/CC
Raisa/NNP
Gorbachev/NNP
stopped/VBD
here/RB
for/IN
talks/NNS
with/IN
Irish/JJ
Prime/NNP
Minister/NNP
Charles/NNP
Haughey/NNP
./.
New/JJ
trade/NN
accords/NNS
were/VBD
signed/VBN
./.
It/PRP
all/DT
started/VBN
with/IN
geography/NN
./.
When/WRB
it/PRP
opened/VBN
in/IN
1939/CD
,/,
Shannon/NNP
was/VBD
the/DT
first/JJ
landfall/NN
in/IN
Europe/NNP
for/IN
thirsty/JJ
airplanes/NNS
flying/VBG
from/IN
North/NNP
America/NNP
./.
Advances/NNS
in/IN
aircraft/NN
fuel/NN
efficiency/NN
over/IN
the/DT
years/NNS
made/VBD
a/DT
Shannon/NNP
stop/NN
unnecessary/JJ
for/IN
most/JJS
Western/JJ
air/NN
fleets/VBZ
,/,
but/CC
Aeroflot/NNP
still/RB
flies/VBZ
inefficient/JJ
Ilyushins/NNPS
that/WDT
ca/MD
n't/RB
make/VB
it/PRP
from/IN
Moscow/NNP
to/TO
Managua/NNP
on/IN
one/CD
hop/NN
./.
As/IN
a/DT
result/NN
,/,
Ireland/NNP
did/VBD
n't/RB
spurn/VB
the/DT
Soviets/NNPS
after/IN
they/PRP
shot/VBD
down/RP
a/DT
Korean/NNP
Air/NNP
Lines/NNP
jetliner/NN
over/IN
the/DT
Sea/NNP
of/IN
Japan/NNP
in/IN
1983/CD
,/,
though/IN
it/PRP
suspended/VBD
direct/JJ
Moscow-Shannon/JJ
flights/NNS
for/IN
two/CD
months/NNS
./.
In/IN
fact/NN
,/,
Aer/NNP
Lingus/NNP
started/VBD
ferrying/VBG
Russians/NNPS
from/IN
Shannon/NNP
to/TO
New/NNP
York/NNP
when/WRB
Washington/NNP
stripped/VBD
Aeroflot/NNP
of/IN
its/PRP$
U.S./NNP
landing/NN
rights/NNS
./.
Today/NN
,/,
Aer/NNP
Rianta/NNP
is/VBZ
making/VBG
a/DT
heap/NN
of/IN
money/NN
from/IN
its/PRP$
Soviet/NNP
friendship/NN
./.
And/CC
,/,
with/IN
those/DT
contacts/NNS
in/IN
place/NN
,/,
it/PRP
could/MD
be/VB
relatively/RB
simple/JJ
to/TO
add/VB
Aer/NNP
Lingus/NNP
and/CC
GPA/NNP
to/TO
the/DT
team/NN
./.
Then/RB
,/,
perhaps/RB
,/,
Mr./NNP
Ovcharenko/NNP
's/POS
ideas/NNS
would/MD
n't/RB
sound/VB
like/IN
so/RB
much/JJ
blarney/NN
./.
Britain/NNP
's/POS
industrial/JJ
production/NN
rose/VBD
1.5/CD
%/NN
in/IN
August/NNP
from/IN
July/NNP
and/CC
was/VBD
up/IN
0.9/CD
%/NN
from/IN
August/NNP
1988/CD
,/,
according/VBG
to/TO
provisional/JJ
data/NNS
from/IN
the/DT
Central/NNP
Statistical/NNP
Office/NNP
./.
Output/NN
in/IN
the/DT
energy/NN
sector/NN
,/,
which/WDT
can/MD
vary/VB
greatly/RB
with/IN
swings/NNS
in/IN
the/DT
oil/NN
market/NN
,/,
rose/VBD
3.8/CD
%/NN
in/IN
August/NNP
from/IN
May/NNP
but/CC
was/VBD
down/RB
7.1/CD
%/NN
from/IN
a/DT
year/NN
earlier/RB
./.
The/DT
latest/JJS
figures/NNS
compare/VBP
with/IN
July/NNP
's/POS
4.5/CD
%/NN
month-to-month/JJ
rise/NN
and/CC
11.3/CD
%/NN
year-to-year/JJ
fall/NN
./.
When/WRB
Nucor/NNP
Corp./NNP
begins/VBZ
shipping/VBG
steel/NN
from/IN
the/DT
world/NN
's/POS
first/JJ
thin-slab/JJ
plant/NN
this/DT
month/NN
,/,
it/PRP
will/MD
begin/VB
testing/VBG
the/DT
competitive/JJ
mettle/NN
of/IN
its/PRP$
giant/JJ
competitors/NNS
./.
The/DT
new/JJ
technology/NN
,/,
which/WDT
creates/VBZ
a/DT
very/RB
thin/JJ
piece/NN
of/IN
steel/NN
,/,
radically/RB
reduces/VBZ
the/DT
costs/NNS
of/IN
making/VBG
flat-rolled/JJ
sheets/NNS
./.
An/DT
ebullient/JJ
Kenneth/NNP
Iverson/NNP
,/,
Nucor/NNP
's/POS
chairman/NN
,/,
says/VBZ
the/DT
company/NN
's/POS
plant/NN
eventually/RB
will/MD
make/VB
a/DT
ton/NN
of/IN
steel/NN
in/IN
1.5/CD
man/NN
hours/NNS
,/,
compared/VBN
with/IN
four/CD
to/TO
six/CD
man/NN
hours/NNS
at/IN
a/DT
conventional/JJ
mill/NN
./.
``/``
We/PRP
've/VBP
had/VBD
the/DT
Russians/NNPS
and/CC
Chinese/NNPS
,/,
and/CC
people/NNS
from/IN
India/NNP
visiting/VBG
us/PRP
,/,
''/''
Mr./NNP
Iverson/NNP
beams/VBZ
./.
``/``
Everyone/NN
in/IN
the/DT
world/NN
is/VBZ
watching/VBG
us/PRP
very/RB
closely/RB
./.
''/''
Especially/RB
his/PRP$
neighbors/NNS
,/,
the/DT
major/JJ
U.S./NNP
steelmakers/NNS
./.
Already/RB
,/,
USX/NNP
Corp./NNP
and/CC
Armco/NNP
Inc./NNP
are/VBP
studying/VBG
Nucor/NNP
's/POS
technology/NN
to/TO
see/VB
if/IN
they/PRP
can/MD
adopt/VB
it/PRP
./.
Says/VBZ
the/DT
chief/JJ
executive/NN
officer/NN
of/IN
a/DT
major/JJ
Midwest/NNP
steel/NN
company/NN
:/:
``/``
It/PRP
's/VBZ
damn/RB
worrisome/JJ
./.
''/''
The/DT
once-staid/JJ

steel/NN
industry/NN
is/VBZ
about/IN
to/TO
be/VB
turned/VBN
topsy-turvy/RB
by/IN
a/DT
1990s/NNS
technology/NN
revolution/NN
./.
New/JJ
,/,
efficient/JJ
and/CC
sophisticated/JJ
processes/NNS
make/VBP
it/PRP
easier/RBR
for/IN
smaller/JJR
,/,
less/RBR
cash-rich/JJ
companies/NNS
to/TO
make/VB
steel/NN
at/IN
a/DT
fraction/NN
of/IN
what/WP
Big/NNP
Steel/NNP
paid/VBD
decades/NNS
ago/RB
./.
It/PRP
also/RB
enables/VBZ
minimills/NNS
finally/RB
to/TO
get/VB
a/DT
toehold/NN
in/IN
the/DT
flat-rolled/JJ
steel/NN
market/NN
--/:
the/DT
major/JJ
steelmakers/NNS
'/POS
largest/JJS
,/,
most/RBS
prized/JJ
,/,
and/CC
until/IN
now/RB
,/,
untouchable/JJ
,/,
market/NN
./.
But/CC
such/JJ
thin-slab/JJ
technology/NN
is/VBZ
only/RB
the/DT
beginning/NN
./.
Eager/JJ
engineers/NNS
espouse/VBP
direct-steelmaking/NN
and/CC
direct/JJ
casting/NN
,/,
which/WDT
by/IN
the/DT
end/NN
of/IN
the/DT
1990s/NNS
will/MD
enable/VB
production/NN
without/IN
coke/NN
ovens/NNS
and/CC
blast/NN
furnaces/NNS
./.
Those/DT
massive/JJ
structures/NNS
,/,
while/IN
posing/VBG
cost/NN
and/CC
environmental/JJ
headaches/NNS
,/,
effectively/RB
locked/VBD
out/RB
all/DT
but/CC
deep-pocketed/JJ
giants/NNS
from/IN
steelmaking/NN
./.
``/``
There/EX
's/VBZ
a/DT
revolution/NN
ahead/RB
of/IN
us/PRP
that/WDT
will/MD
ultimately/RB
change/VB
the/DT
way/NN
we/PRP
market/VBP
and/CC
distribute/VBP
steel/NN
,/,
''/''
says/VBZ
William/NNP
Dennis/NNP
,/,
vice/NN
president/NN
,/,
manufacturing/NN
and/CC
technology/NN
,/,
for/IN
the/DT
American/NNP
Iron/NNP
Ore/NNP
and/CC
Steel/NNP
Institute/NNP
./.
It/PRP
is/VBZ
n't/RB
that/RB
major/JJ
steelmakers/NNS
have/VBP
blithely/RB
ignored/VBN
high/JJ
technology/NN
./.
In/IN
fact/NN
,/,
they/PRP
've/VBP
spent/VBN
billions/NNS
of/IN
dollars/NNS
to/TO
boost/VB
the/DT
percentage/NN
of/IN
continously/RB
cast/VBN
steel/NN
to/TO
60.9/CD
%/NN
in/IN
1988/CD
,/,
from/IN
39.6/CD
%/NN
five/CD
years/NNS
before/RB
./.
Moreover/RB
,/,
their/PRP$
balance/NN
sheets/NNS
are/VBP
rich/JJ
with/IN
diversity/NN
,/,
their/PRP$
old/JJ
plants/NNS
shuttered/JJ
,/,
and/CC
work/NN
forces/NNS
lean/JJ
./.
But/CC
that/DT
wo/MD
n't/RB
suffice/VB
./.
``/``
It/PRP
's/VBZ
no/RB
longer/RB
enough/JJ
to/TO
beat/VB
the/DT
guy/NN
down/IN
the/DT
street/NN
./.
You/PRP
have/VBP
to/TO
beat/VB
everyone/NN
around/IN
the/DT
world/NN
,/,
''/''
says/VBZ
Mr./NNP
Dennis/NNP
./.
He/PRP
wants/VBZ
to/TO
see/VB
steelmakers/NNS
more/RBR
involved/JJ
in/IN
computers/NNS
and/CC
artificial/JJ
intelligence/NN
./.
The/DT
problem/NN
:/:
They/PRP
're/VBP
saddled/VBN
with/IN
huge/JJ
plants/NNS
that/WDT
require/VBP
costly/JJ
maintenance/NN
./.
And/CC
try/VB
plying/VBG
new/JJ
dollars/NNS
free/RB
in/IN
a/DT
market/NN
that/WDT
is/VBZ
softening/VBG
,/,
hurt/JJ
by/IN
a/DT
strong/JJ
dollar/NN
and/CC
concerned/JJ
about/IN
overcapacity/NN
--/:
the/DT
industry/NN
's/POS
Darth/NNP
Vadar/NNP
./.
``/``
The/DT
technology/NN
revolution/NN
is/VBZ
going/VBG
to/TO
be/VB
very/RB
threatening/JJ
to/TO
established/JJ
producers/NNS
,/,
''/''
says/VBZ
Peter/NNP
Marcus/NNP
,/,
an/DT
analyst/NN
with/IN
PaineWebber/NNP
Inc/NNP
./.
``/``
They/PRP
've/VBP
got/VBN
too/RB
much/RB
invested/VBN
in/IN
the/DT
old/JJ
stuff/NN
and/CC
they/PRP
ca/MD
n't/RB
get/VB
their/PRP$
workers/NNS
to/TO
be/VB
flexible/JJ
./.
''/''
No/DT
one/NN
expects/VBZ
minimills/NNS
to/TO
eclipse/VB
major/JJ
integrated/JJ
steelmakers/NNS
,/,
who/WP
remain/VBP
the/DT
undisputed/JJ
kings/NNS
of/IN
highest-quality/JJS
steel/NN
used/VBN
for/IN
autos/NNS
and/CC
refrigerators/NNS
./.
Nucor/NNP
's/POS
plant/NN
in/IN
Crawfordsville/NNP
,/,
Ind./NNP
,/,
ultimately/RB
will/MD
produce/VB
only/RB
one/CD
million/CD
tons/NNS
annually/RB
,/,
a/DT
drop/NN
in/IN
the/DT
40-million-ton-a-year/JJ
flat-rolled/JJ
steel/NN
bucket/NN
,/,
and/CC
it/PRP
will/MD
be/VB
years/NNS
before/IN
such/JJ
plants/NNS
can/MD
compete/VB
in/IN
the/DT
high-profit/JJ
market/NN
./.
Still/RB
,/,
flat-rolled/JJ
is/VBZ
the/DT
steel/NN
industry/NN
's/POS
bread/NN
and/CC
butter/NN
,/,
representing/VBG
about/IN
half/NN
of/IN
the/DT
80/CD
million/CD
tons/NNS
of/IN
steel/NN
expected/VBN
to/TO
be/VB
shipped/VBN
this/DT
year/NN
./.
Moreover/RB
,/,
the/DT
process/NN
is/VBZ
n't/RB
without/IN
its/PRP$
headaches/NNS
./.
Because/IN
all/DT
operations/NNS
are/VBP
connected/VBN
,/,
one/CD
equipment/NN
failure/NN
forces/VBZ
a/DT
complete/JJ
plant/NN
shutdown/NN
./.
On/IN
some/DT
days/NNS
,/,
the/DT
Nucor/NNP
plant/NN
does/VBZ
n't/RB
produce/VB
anything/NN
./.
``/``
At/IN
this/DT
point/NN
,/,
the/DT
minimill/NN
capacity/NN
wo/MD
n't/RB
make/VB
a/DT
great/JJ
dent/NN
in/IN
the/DT
integrated/JJ
market/NN
,/,
but/CC
it/PRP
does/VBZ
challenge/VB
them/PRP
to/TO
develop/VB
new/JJ
markets/NNS
,/,
''/''
says/VBZ
James/NNP
McCall/NNP
,/,
vice/NN
president/NN
,/,
materials/NNS
,/,
at/IN
Battelle/NNP
,/,
a/DT
technology/NN
and/CC
management-research/NN
giant/NN
based/VBN
in/IN
Columbus/NNP
,/,
Ohio/NNP
./.
Indeed/RB
,/,
with/IN
demand/NN
for/IN
steel/NN
not/RB
growing/VBG
fast/RB
enough/RB
to/TO
absorb/VB
capacity/NN
,/,
steelmakers/NNS
will/MD
have/VB
to/TO
change/VB
the/DT
way/NN
they/PRP
do/VBP
business/NN
./.
In/IN
the/DT
past/NN
,/,
says/VBZ
Armco/NNP
's/POS
chief/JJ
economist/NN
John/NNP
Corey/NNP
,/,
steelmakers/NNS
made/VBD
a/DT
product/NN
and/CC
set/VBD
it/PRP
out/RP
on/IN
the/DT
loading/NN
dock/NN
./.
``/``
We/PRP
said/VBD
:/:
`/``
We/PRP
've/VBP
got/VBN
a/DT
product/NN
:/:
if/IN
you/PRP
want/VBP
it/PRP
,/,
you/PRP
can/MD
buy/VB
it/PRP
,/,
'/''
''/''
he/PRP
says/VBZ
,/,
adding/VBG
:/:
``/``
Now/RB
we/PRP
're/VBP
figuring/VBG
out/RP
what/WP
people/NNS
need/VBP
,/,
and/CC
are/VBP
going/VBG
back/RB
to/TO
make/VB
it/PRP
./.
''/''
Armco/NNP
's/POS
sales/NNS
representatives/NNS
visit/VBP
the/DT
General/NNP
Motors/NNP
Corp./NNP
's/POS
Fairfax/NN
assembly/NN
plant/NN
in/IN
Kansas/NNP
City/NNP
,/,
Mo./NNP
,/,
two/CD
or/CC
three/CD
days/NNS
a/DT
week/NN
./.
When/WRB
they/PRP
determined/VBD
that/IN
GM/NNP
needed/VBD
parts/NNS
more/RBR
quickly/RB
,/,
Armco/NNP
convinced/VBD
a/DT
steel/NN
service/NN
center/NN
to/TO
build/VB
a/DT
processing/NN
plant/NN
nearby/RB
so/IN
shipments/NNS
could/MD
be/VB
delivered/VBN
within/IN
15/CD
minutes/NNS
./.
Cementing/VBG
such/JJ
relationships/NNS
with/IN
major/JJ
clients/NNS
--/:
car/NN
and/CC
appliance/NN
makers/NNS
--/:
is/VBZ
a/DT
means/NN
of/IN
survival/NN
,/,
especially/RB
when/WRB
those/DT
key/JJ
clients/NNS
are/VBP
relying/VBG
on/IN
a/DT
smaller/JJR
pool/NN
of/IN
producers/NNS
and/CC
flirting/VBG
with/IN
plastic/NN
and/CC
aluminum/NN
makers/NNS
./.
For/IN
example/NN
,/,
when/WRB
Detroit/NNP
began/VBD
talking/VBG
about/IN
plastic-bodied/JJ
cars/NNS
,/,
the/DT
American/NNP
Iron/NNP
and/CC
Steel/NNP
Institute/NNP
began/VBD
a/DT
major/JJ
lobbying/NN
effort/NN
to/TO
show/VB
auto/NN
makers/NNS
how/WRB
they/PRP
could/MD
use/VB
steel/NN
more/RBR
efficiently/RB
by/IN
simply/RB
redesigning/VBG
how/WRB
a/DT
car/NN
door/NN
is/VBZ
assembled/VBN
./.
But/CC
steelmakers/NNS
must/MD
also/RB
find/VB
new/JJ
markets/NNS
./.
After/IN
letting/VBG
aluminum-makers/NNS
take/VB
the/DT
recycling/NN
lead/NN
,/,
a/DT
group/NN
of/IN
the/DT
nation/NN
's/POS
largest/JJS
steelmakers/NNS
started/VBD
a/DT
recycling/NN
institute/NN
to/TO
promote/VB
steel/NN
cans/NNS
to/TO
an/DT
environmentally/RB
conscious/JJ
nation/NN
./.
Battelle/NNP
's/POS
Mr./NNP
McCall/NNP
thinks/VBZ
steelmakers/NNS
should/MD
concentrate/VB
more/RBR
on/IN
construction/NN
./.
Weirton/NNP
Steel/NNP
Corp./NNP
,/,
Weirton/NNP
,/,
W./NNP
Va./NNP
,/,
for/IN
example/NN
,/,
is/VBZ
touting/VBG
to/TO
homeowners/NNS
fashionable/JJ
steel/NN
doors/NNS
,/,
with/IN
leaded/JJ
glass/NN
inserts/NNS
,/,
as/IN
a/DT
secure/JJ
and/CC
energy-efficient/JJ
alternative/NN
to/TO
wooden/JJ
or/CC
aluminum/JJ
ones/NNS
./.
Other/JJ
steelmakers/NNS
envision/VBP
steel/NN
roofs/NNS
covering/VBG
suburbia/NN
./.
Still/RB
others/NNS
are/VBP
looking/VBG
at/IN
overseas/JJ
markets/NNS
./.
USX/NNP
is/VBZ
funneling/VBG
drilling/NN
pipe/NN
to/TO
steel-hungry/JJ
Soviet/NNP
Union/NNP
./.
This/DT
year/NN
,/,
the/DT
nation/NN
's/POS
largest/JJS
steelmaker/NN
reactivated/VBD
its/PRP$
overseas/JJ
sales/NNS
operation/NN
./.
Producers/NNS
also/RB
are/VBP
trying/VBG
to/TO
differentiate/VB
by/IN
concentrating/VBG
on/IN
higher-profit/JJR
output/NN
,/,
such/JJ
as/IN
coated/JJ
and/CC
electrogalvanized/JJ
products/NNS
,/,
which/WDT
remain/VBP
beyond/IN
the/DT
reach/NN
of/IN
minimills/NNS
./.
Almost/RB
all/DT
capital-improvement/NN
programs/NNS
announced/VBN
by/IN
major/JJ
steelmakers/NNS
within/IN
the/DT
past/NN
year/NN
involve/VBP
building/VBG
electrogalvanizing/VBG
lines/NNS
,/,
used/VBN
to/TO
produce/VB
steel/NN
for/IN
such/JJ
products/NNS
as/IN
household/NN
appliances/NNS
and/CC
car/NN
doors/NNS
./.
But/CC
unfortunately/RB
,/,
that/IN
segment/NN
is/VBZ
much/RB
smaller/JJR
than/IN
the/DT
bread-and-butter/JJ
flat-rolled/JJ
steel/NN
./.
``/``
It/PRP
's/VBZ
like/IN
everyone/NN
climbing/VBG
out/IN
of/IN
the/DT
QE/NNP
II/NNP
and/CC
getting/VBG
into/IN
a/DT
lifeboat/NN
,/,
''/''
says/VBZ
John/NNP
Jacobson/NNP
,/,
an/DT
analyst/NN
with/IN
AUS/NNP
Consultants/NNP
./.
``/``
After/IN
a/DT
while/NN
,/,
someone/NN
has/VBZ
to/TO
go/VB
over/IN
the/DT
side/NN
./.
''/''
Although/IN
he/PRP
does/VBZ
n't/RB
expect/VB
any/DT
bankruptcies/NNS
,/,
he/PRP
does/VBZ
see/VB
more/JJR
plants/NNS
being/VBG
sold/VBN
or/CC
closed/VBN
./.
Robert/NNP
Crandall/NNP
,/,
with/IN
the/DT
Brookings/NNP
Institute/NNP
,/,
agrees/VBZ
./.
``/``
Unless/IN
there/EX
is/VBZ
an/DT
enormous/JJ
rate/NN
of/IN
economic/JJ
growth/NN
or/CC
a/DT
further/JJR
drop/NN
in/IN
the/DT
dollar/NN
,/,
it/PRP
's/VBZ
unlikely/JJ
that/IN
consumption/NN
of/IN
U.S./NNP
produced/VBN
steel/NN
will/MD
grow/VB
sufficiently/RB
to/TO
offset/VB
the/DT
growth/NN
of/IN
minimills/NNS
./.
''/''
Not/RB
to/TO
mention/VB
the/DT
incursion/NN
of/IN
imports/NNS
./.
Japanese/JJ
and/CC
European/JJ
steelmakers/NNS
,/,
which/WDT
have/VBP
led/VBN
the/DT
recent/JJ
technology/NN
developments/NNS
,/,
are/VBP
anxiously/RB
awaiting/VBG
the/DT
lifting/NN
of/IN
trade/NN
restraints/NNS
in/IN
1992/CD
./.
Moreover/RB
,/,
the/DT
U.S./NNP
can/MD
expect/VB
more/JJR
competition/NN
from/IN
low-cost/JJ
producing/VBG
Pacific/NNP
Rim/NNP
and/CC
Latin/JJ
American/JJ
countries/NNS
./.
A/DT
Taiwanese/JJ
steelmaker/NN
recently/RB
announced/VBD
plans/NNS
to/TO
build/VB
a/DT
Nucor-like/JJ
plant/NN
./.
``/``
People/NNS
think/VBP
of/IN
the/DT
steel/NN
business/NN
as/IN
an/DT
old/JJ
and/CC
mundane/JJ
smokestack/NN
business/NN
,/,
''/''
says/VBZ
Mr./NNP
Iverson/NNP
./.
``/``
They/PRP
're/VBP
dead/RB
wrong/JJ
./.
''/''
\*/SYM
USX/NNP
,/,
LTV/NNP
,/,
Bethlehem/NNP
,/,
Inland/NNP
,/,
Armco/NNP
,/,
National/NNP
Steel/NNP
\*\*/SYM
Projected/VBN
Source/NN
:/:
WEFA/NNP
Group/NNP
Polaroid/NNP
Corp./NNP
's/POS
patent-infringement/NN
damages/NNS
case/NN
against/IN
Eastman/NNP
Kodak/NNP
Co./NNP
,/,
one/CD
of/IN
the/DT
highest/JJS
stakes/NNS
corporate/JJ
trials/NNS
ever/RB
,/,
is/VBZ
getting/VBG
scant/JJ
attention/NN
on/IN
Wall/NNP
Street/NNP
./.
After/IN
78/CD
days/NNS
of/IN
mind-numbing/JJ
testimony/NN
in/IN
federal/JJ
court/NN
in/IN
Boston/NNP
,/,
the/DT
trial/NN
is/VBZ
being/VBG
all/DT
but/CC
ignored/VBN
by/IN
analysts/NNS
and/CC
patent/NN
attorneys/NNS
./.
Most/JJS
have/VBP
read/VBN
the/DT
pre-trial/NN
documents/NNS
,/,
however/RB
,/,
and/CC
estimate/VBP
Kodak/NNP
will/MD
be/VB
ordered/VBN
to/TO
pay/VB
$/$
1/CD
billion/CD
to/TO
$/$
1.5/CD
billion/CD
for/IN
infringing/VBG
on/IN
seven/CD
Polaroid/NNP
patents/NNS
./.
That/DT
may/MD
be/VB
the/DT
largest/JJS
patent/NN
award/NN
ever/RB
,/,
but/CC
it/PRP
is/VBZ
well/RB
below/IN
the/DT
$/$
12/CD
billion/CD
Polaroid/NNP
seeks/VBZ
./.
The/DT
highest/JJS
patent/NN
damage/NN
award/NN
to/TO
date/NN
was/VBD
in/IN
1986/CD
,/,
when/WRB
Smith/NNP
International/NNP
Inc./NNP
was/VBD
ordered/VBN
to/TO
pay/VB
$/$
205/CD
million/CD
to/TO
Baker/NNP
Hughes/NNP
Inc./NNP
for/IN
infringing/VBG
on/IN
a/DT
patent/NN
on/IN
an/DT
oil/NN
drilling/NN
bit/NN
seal/NN
./.
The/DT
two/CD
companies/NNS
later/RB
agreed/VBD
to/TO
settle/VB
for/IN
$/$
95/CD
million/CD
./.
Few/JJ
analysts/NNS
think/VBP
it/PRP
is/VBZ
worth/JJ
their/PRP$
time/NN
to/TO
slog/VB
through/IN
the/DT
Polaroid/NNP
trial/NN
testimony/NN
./.
``/``
It/PRP
's/VBZ
like/IN
panning/VBG
for/IN
gold/JJ
outside/NN
of/IN
Grand/NNP
Central/NNP
Station/NNP
./.
You/PRP
might/MD
find/VB
something/NN
,/,
but/CC
the/DT
chances/NNS
are/VBP
low/JJ
,/,
''/''
said/VBD
Michael/NNP
Ellman/NNP
,/,
an/DT
analyst/NN
at/IN
Wertheim/NNP
Schroder/NNP
&/CC
Co/NNP
./.
And/CC
Eugene/NNP
Glazer/NNP
,/,
an/DT
analyst/NN
at/IN
Dean/NNP
Witter/NNP
Reynolds/NNP
Inc./NNP
,/,
said/VBD
:/:
``/``
If/IN
you/PRP
hired/VBD
an/DT
attorney/NN
to/TO
be/VB
there/RB
all/PDT
the/DT
time/NN
and/CC
give/VB
you/PRP
a/DT
prediction/NN
the/DT
eventual/JJ
award/NN
,/,
I/PRP
would/MD
be/VB
willing/JJ
to/TO
bet/VB
that/IN
he/PRP
would/MD
be/VB
off/RP
''/''
by/IN
a/DT
lot/NN
./.
A/DT
75-day/JJ
trial/NN
in/IN
the/DT
early/JJ
1980s/NNS
determined/VBD
that/DT
Kodak/NNP
,/,
based/VBN
in/IN
Rochester/NNP
,/,
N.Y./NNP
,/,
infringed/VBD
on/IN
patents/NNS
of/IN
Polaroid/NNP
,/,
of/IN
Cambridge/NNP
,/,
Mass/NNP
./.
The/DT
main/JJ
issues/NNS
remaining/VBG
are/VBP
how/WRB
to/TO
calculate/VB
damages/NNS
and/CC
whether/IN
the/DT
infringement/NN
was/VBD
``/``
willful/JJ
and/CC
deliberate/JJ
./.
''/''
If/IN
so/RB
,/,
the/DT
damages/NNS
could/MD
be/VB
tripled/VBN
./.
Two/CD
analysts/NNS
who/WP
have/VBP
read/VBN
the/DT
transcripts/NNS
,/,
David/NNP
Nelson/NNP
of/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
and/CC
Calvert/NNP
D./NNP
Crary/NNP
,/,
a/DT
litigation/NN
analyst/NN
at/IN
Labe/NNP
,/,
Simpson/NNP
&/CC
Co./NNP
,/,
think/VBP
Judge/NNP
A./NN
David/NNP
Mazzone/NNP
will/MD
decide/VB
in/IN
Kodak/NNP
's/POS
favor/NN
on/IN
the/DT
``/``
willful/JJ
and/CC
deliberate/JJ
''/''
issue/NN
./.
Mr./NNP
Crary/NNP
said/VBD
testimony/NN
by/IN
Kodak/NNP
's/POS
patent/NN
counsel/NN
,/,
Francis/NNP
T./NNP
Carr/NNP
of/IN
Kenyon/NNP
&/CC
Kenyon/NNP
,/,
showed/VBD
that/IN
``/``
he/PRP
worked/VBD
with/IN
Kodak/NNP
continuously/RB
from/IN
the/DT
outset/NN
of/IN
the/DT
project/NN
''/''
in/IN
an/DT
effort/NN
to/TO
avoid/VB
infringement/NN
./.
``/``
Carr/NNP
told/VBD
Kodak/NNP
on/IN
many/JJ
occasions/NNS
to/TO
avoid/VB
various/JJ
features/NNS
because/IN
of/IN
Polaroid/NNP
's/POS
patent/NN
positions/NNS
,/,
''/''
and/CC
Kodak/NNP
followed/VBD
his/PRP$
advice/NN
in/IN
every/DT
instance/NN
,/,
Mr./NNP
Crary/NNP
said/VBD
./.
But/CC
Irving/NNP
Kayton/NNP
,/,
a/DT
patent/NN
expert/NN
at/IN
George/NNP
Mason/NNP
University/NNP
School/NNP
of/IN
Law/NNP
who/WP
is/VBZ
familiar/JJ
with/IN
the/DT
case/NN
,/,
said/VBD
the/DT
fact/NN
that/IN
seven/CD
patents/NNS
were/VBD
infringed/VBN
``/``
suggests/VBZ
that/DT
infringement/NN
was/VBD
willful/JJ
./.
It/PRP
's/VBZ
difficult/JJ
to/TO
be/VB
that/IN
consistently/RB
wrong/JJ
./.
''/''
Observers/NNS
also/RB
wonder/VBP
whether/IN
Judge/NNP
Mazzone/NNP
will/MD
use/VB
the/DT
lost-profits/JJ
method/NN
of/IN
determining/VBG
damages/NNS
,/,
which/WDT
Polaroid/NNP
favors/VBZ
because/IN
it/PRP
would/MD
result/VB
in/IN
a/DT
larger/JJR
award/NN
,/,
or/CC
the/DT
reasonable/JJ
royalty/NN
method/NN
./.
Polaroid/NNP
claims/VBZ
it/PRP
could/MD
have/VB
manufactured/VBN
and/CC
sold/VBN
all/PDT
the/DT
instant/NN
cameras/NNS
and/CC
film/NN
sold/VBN
by/IN
Kodak/NNP
if/IN
Kodak/NNP
had/VBD
n't/RB
entered/VBN
the/DT
market/NN
./.
Moreover/RB
,/,
Polaroid/NNP
contends/VBZ
it/PRP
could/MD
have/VB
sold/VBN
them/PRP
at/IN
a/DT
higher/JJR
price/NN
--/:
and/CC
thus/RB
made/VBD
higher/JJR
profits/NNS
--/:
because/IN
it/PRP
would/MD
n't/RB
have/VB
been/VBN
forced/VBN
to/TO
match/VB
Kodak/NNP
's/POS
lower/JJR
prices/NNS
./.
Each/DT
side/NN
has/VBZ
called/VBN
a/DT
Harvard/NNP
Business/NNP
School/NNP
professor/NN
to/TO
testify/VB
on/IN
that/DT
issue/NN
./.
Kodak/NN
hired/VBD
Robert/NNP
Buzzell/NNP
and/CC
Polaroid/NNP
brought/VBD
in/RP
Robert/NNP
J./NNP
Dolan/NNP
./.
``/``
There/EX
's/VBZ
nothing/NN
that/WDT
says/VBZ
that/IN
people/NNS
at/IN
Harvard/NNP
Business/NNP
school/NN
have/VBP
to/TO
agree/VB
with/IN
each/DT
other/JJ
,/,
''/''
said/VBD
Mr./NNP
Buzzell/NNP
./.
Testimony/NN
is/VBZ
expected/VBN
to/TO
continue/VB
until/IN
early/JJ
December/NNP
./.
A/DT
decision/NN
is/VBZ
n't/RB
expected/VBN
until/IN
some/DT
time/NN
next/IN
year/NN
./.
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
said/VBD
earnings/NNS
tumbled/VBD
30/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
even/RB
a/DT
bit/RB
further/RBR
than/IN
expected/VBN
,/,
rendering/VBG
the/DT
outlook/NN
doubtful/JJ
for/IN
the/DT
next/JJ
few/JJ
quarters/NNS
./.
The/DT
main/JJ
reason/NN
was/VBD
a/DT
delay/NN
in/IN
shipment/NN
of/IN
new/JJ
high-end/JJ
disk/NN
drives/NNS
,/,
a/DT
business/NN
that/WDT
accounts/VBZ
for/IN
some/DT
10/CD
%/NN
of/IN
IBM/NNP
's/POS
$/$
60/CD
billion/CD
of/IN
annual/JJ
revenue/NN
./.
IBM/NNP
,/,
which/WDT
telegraphed/VBD
the/DT
poor/JJ
results/NNS
three/CD
weeks/NNS
ago/RB
,/,
also/RB
cited/VBD
an/DT
increase/NN
in/IN
its/PRP$
leasing/NN
business/NN
,/,
which/WDT
tends/VBZ
to/TO
lock/VB
in/IN
business/NN
long-term/NNS
but/CC
cut/VBN
revenue/NN
in/IN
the/DT
near/JJ
term/NN
./.
In/IN
addition/NN
,/,
IBM/NNP
noted/VBD
that/IN
the/DT
stronger/JJR
dollar/NN
has/VBZ
cut/VBN
the/DT
value/NN
of/IN
overseas/JJ
revenue/NN
and/CC
earnings/NNS
when/WRB
they/PRP
are/VBP
translated/VBN
into/IN
dollars/NNS
./.
Earnings/NNS
fell/VBD
to/TO
$/$
877/CD
million/CD
,/,
or/CC
$/$
1.51/CD
a/DT
share/NN
,/,
somewhat/RB
below/IN
securities/NNS
analysts/NNS
'/POS
revised/JJ
expectations/NNS
of/IN
around/IN
$/$
1.60/CD
a/DT
share/NN
./.
That/IN
compared/VBN
with/IN
the/DT
year-earlier/JJ
$/$
1.25/CD
billion/CD
,/,
or/CC
$/$
2.10/CD
a/DT
share/NN
--/:
which/WDT
was/VBD
inflated/VBN
by/IN
a/DT
15-cents-a-share/JJ
gain/NN
from/IN
the/DT
sale/NN
of/IN
some/DT
MCI/NNP
Communications/NNPS
Corp./NNP
stock/NN
and/CC
by/IN
an/DT
unspecified/JJ
amount/NN
from/IN
a/DT
payment/NN
by/IN
Fujitsu/NNP
Ltd./NNP
relating/VBG
to/TO
a/DT
software/NN
dispute/NN
./.
Revenue/NN
climbed/VBD
4.3/CD
%/NN
to/TO
$/$
14.31/CD
billion/CD
from/IN
$/$
13.71/CD
billion/CD
./.
IBM/NNP
,/,
Armonk/NNP
,/,
N.Y./NNP
,/,
remained/VBD
upbeat/JJ
./.
The/DT
computer/NN
giant/NN
,/,
whose/WP$
U.S./NNP
results/NNS
have/VBP
been/VBN
dismal/JJ
for/IN
years/NNS
,/,
noted/VBN
that/DT
revenue/NN
rose/VBD
again/RB
in/IN
the/DT
U.S./NNP
in/IN
the/DT
third/JJ
quarter/NN
,/,
following/VBG
an/DT
increase/NN
in/IN
the/DT
second/JJ
period/NN
./.
The/DT
company/NN
said/VBD
in/IN
a/DT
statement/NN
that/IN
``/``
demand/NN
for/IN
IBM/NNP
products/NNS
and/CC
services/NNS
continues/VBZ
to/TO
be/VB
good/JJ
world-wide/RB
./.
We/PRP
do/VBP
not/RB
see/VB
anything/NN
in/IN
the/DT
fundamentals/NNS
of/IN
our/PRP$
business/NN
that/WDT
would/MD
cause/VB
us/PRP
to/TO
change/VB
our/PRP$
strategy/NN
of/IN
investing/VBG
for/IN
profitable/JJ
growth/NN
./.
''/''
Securities/NNS
analysts/NNS
,/,
however/RB
,/,
remained/VBD
downbeat/JJ
./.
``/``
I/PRP
think/VBP
1990/CD
will/MD
be/VB
another/DT
mediocre/JJ
year/NN
,/,
''/''
said/VBD
Steve/NNP
Milunovich/NNP
of/IN
First/NNP
Boston/NNP
./.
Jay/NNP
Stevens/NNP
of/IN
Dean/NNP
Witter/NNP
actually/RB
cut/VBD
his/PRP$
per-share/JJ
earnings/NNS
estimate/NN
to/TO
$/$
9/CD
from/IN
$/$
9.50/CD
for/IN
1989/CD
and/CC
to/TO
$/$
9.50/CD
from/IN
$/$
10.35/CD
in/IN
1990/CD
because/IN
he/PRP
decided/VBD
sales/NNS
would/MD
be/VB
even/RB
weaker/JJR
than/IN
he/PRP
had/VBD
expected/VBN
./.
Both/DT
estimates/NNS
would/MD
mark/VB
declines/NNS
from/IN
the/DT
1988/CD
net/NN
of/IN
$/$
5.81/CD
billion/CD
,/,
or/CC
$/$
9.80/CD
a/DT
share/NN
,/,
which/WDT
itself/PRP
was/VBD
well/RB
below/IN
the/DT
record/NN
IBM/NNP
set/VBD
in/IN
1984/CD
./.
Mr./NNP
Stevens/NNP
said/VBD
he/PRP
kept/VBD
a/DT
``/``
buy\/hold/JJ
''/''
recommendation/NN
on/IN
the/DT
stock/NN
only/RB
because/IN
``/``
all/PDT
the/DT
damage/NN
has/VBZ
been/VBN
done/VBN
./.
''/''
He/PRP
said/VBD
the/DT
stock/NN
has/VBZ
n't/RB
traded/VBN
below/IN
1/CD
1\/2/CD
times/CC
book/NN
value/NN
over/IN
the/DT
past/JJ
10/CD
years/NNS
,/,
which/WDT
at/IN
the/DT
moment/NN
computes/VBZ
to/TO
a/DT
stock/NN
price/NN
of/IN
$/$
100/CD
./.
The/DT
stock/NN
closed/VBD
yesterday/NN
at/IN
$/$
103/CD
a/DT
share/NN
,/,
up/RB
just/RB
$/$
1/CD
in/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
as/IN
the/DT
market/NN
surged/VBD
./.
Analysts/NNS
worry/VBP
that/IN
the/DT
disk-drive/NN
and/CC
leasing/NN
problems/NNS
will/MD
last/VB
at/IN
least/JJS
through/IN
the/DT
first/JJ
quarter/NN
./.
``/``
A/DT
key/JJ
part/NN
of/IN
the/DT
question/NN
is/VBZ
,/,
how/WRB
soon/RB
does/VBZ
this/DT
disk-drive/NN
come/VB
and/CC
how/WRB
soon/RB
does/VBZ
production/NN
ramp/VB
up/RB
?/.
''/''
said/VBD
Steve/NNP
Cohen/NNP
at/IN
SoundView/NNP
Financial/NNP
Group/NNP
./.
``/``
And/CC
the/DT
input/NN
I/PRP
've/VBP
had/VBN
from/IN
customers/NNS
is/VBZ
that/IN
it/PRP
still/RB
could/MD
be/VB
a/DT
while/NN
./.
''/''
On/IN
leasing/NN
,/,
Bob/NNP
Djurdjevic/NNP
at/IN
Annex/NNP
Research/NNP
said/VBD
he/PRP
thinks/VBZ
IBM/NNP
has/VBZ
hurt/VBN
itself/PRP
unnecessarily/RB
./.
He/PRP
said/VBD
IBM/NNP
has/VBZ
priced/VBN
its/PRP$
leases/NNS
aggressively/RB
,/,
thinking/VBG
that/DT
would/MD
help/VB
win/VB
business/NN
./.
But/CC
he/PRP
said/VBD
IBM/NNP
would/MD
have/VB
won/VBN
the/DT
business/NN
anyway/RB
as/IN
a/DT
sale/NN
to/TO
a/DT
third/JJ
party/NN
that/WDT
would/MD
have/VB
then/RB
leased/VBN
the/DT
equipment/NN
to/TO
the/DT
customer/NN
./.
He/PRP
said/VBD
IBM/NNP
has/VBZ
not/RB
only/RB
hurt/VB
its/PRP$
short-term/JJ
revenue/NN
outlook/NN
but/CC
has/VBZ
also/RB
been/VBN
losing/VBG
money/NN
on/IN
its/PRP$
leases/NNS
./.
Bob/NNP
Bardagy/NNP
,/,
executive/NN
vice/NN
president/NN
of/IN
marketing/NN
at/IN
Comdisco/NNP
Inc./NNP
,/,
a/DT
huge/JJ
leasing/NN
firm/NN
,/,
said/VBD
:/:
``/``
To/TO
put/VB
it/PRP
mildly/RB
,/,
IBM/NNP
Credit/NNP
has/VBZ
been/VBN
doing/VBG
some/DT
of/IN
the/DT
worst/JJS
economic/JJ
deals/NNS
of/IN
any/DT
leasing/NN
company/NN
we/PRP
have/VBP
ever/RB
seen/VBN
./.
''/''
IBM/NNP
is/VBZ
expected/VBN
to/TO
get/VB
a/DT
boost/NN
soon/RB
when/WRB
it/PRP
announces/VBZ
some/DT
new/JJ
versions/NNS
of/IN
its/PRP$
mainframes/NNS
./.
But/CC
the/DT
basic/JJ
technology/NN
in/IN
the/DT
line/NN
is/VBZ
almost/RB
five/CD
years/NNS
old/JJ
,/,
which/WDT
means/VBZ
it/PRP
is/VBZ
long/JJ
in/IN
the/DT
tooth/NN
,/,
and/CC
competitors/NNS
are/VBP
rolling/VBG
out/RP
strong/JJ
products/NNS
of/IN
their/PRP$
own/JJ
./.
IBM/NNP
is/VBZ
gaining/VBG
momentum/NN
in/IN
the/DT
personal-computer/NN
market/NN
,/,
and/CC
is/VBZ
expected/VBN
to/TO
introduce/VB
some/DT
impressive/JJ
workstations/NNS
early/JJ
next/JJ
year/NN
./.
But/CC
it/PRP
's/VBZ
hard/JJ
to/TO
squeeze/VB
much/JJ
profit/NN
out/IN
of/IN
the/DT
personal-computer/NN
business/NN
these/DT
days/NNS
,/,
and/CC
the/DT
workstation/NN
market/NN
,/,
while/IN
important/JJ
,/,
is/VBZ
too/RB
small/JJ
to/TO
rely/VB
on/IN
for/IN
much/JJ
growth/NN
./.
The/DT
disk/NN
drives/NNS
will/MD
doubtless/RB
sell/VB
well/RB
when/WRB
they/PRP
finally/RB
become/VBP
available/JJ
./.
But/CC
the/DT
AS\/400/NN
,/,
IBM/NNP
's/POS
highly/RB
successful/JJ
minicomputer/NN
line/NN
,/,
is/VBZ
losing/VBG
its/PRP$
momentum/NN
,/,
and/CC
some/DT
analysts/NNS
said/VBD
sales/NNS
could/MD
even/RB
decline/VB
in/IN
the/DT
fourth/JJ
quarter/NN
./.
In/IN
addition/NN
,/,
IBM/NNP
's/POS
growth/NN
in/IN
software/NN
in/IN
the/DT
third/JJ
quarter/NN
was/VBD
just/RB
8.8/CD
%/NN
,/,
well/RB
below/IN
historical/JJ
levels/NNS
even/RB
when/WRB
adjusted/VBN
to/TO
reflect/VB
last/JJ
year/NN
's/POS
payment/NN
from/IN
Fujitsu/NNP
and/CC
the/DT
stronger/JJR
dollar/NN
./.
And/CC
expenses/NNS
,/,
up/RB
7.9/CD
%/NN
in/IN
the/DT
quarter/NN
,/,
have/VBP
stayed/VBN
stubbornly/RB
high/JJ
./.
In/IN
the/DT
nine/CD
months/NNS
,/,
IBM/NNP
earned/VBD
$/$
3.17/CD
billion/CD
,/,
or/CC
$/$
5.43/CD
a/DT
share/NN
,/,
down/RB
8.4/CD
%/NN
from/IN
the/DT
year-earlier/JJ
$/$
3.46/CD
billion/CD
,/,
or/CC
$/$
5.83/CD
a/DT
share/NN
./.
Revenue/NN
increased/VBN
6.5/CD
%/NN
to/TO
$/$
42.25/CD
billion/CD
from/IN
$/$
39.68/CD
billion/CD
./.
PepsiCo/NNP
Inc./NNP
's/POS
chairman/NN
said/VBD
he/PRP
is/VBZ
``/``
more/RBR
than/IN
comfortable/JJ
with/IN
''/''
analysts/NNS
'/POS
estimates/NNS
that/IN
third-quarter/JJ
earnings/NNS
rose/VBD
to/TO
at/IN
least/JJS
98/CD
cents/NNS
to/TO
$/$
1/CD
a/DT
share/NN
from/IN
91/CD
cents/NNS
the/DT
year/NN
earlier/RB
./.
D./NNP
Wayne/NNP
Calloway/NNP
,/,
also/RB
chief/JJ
executive/NN
officer/NN
of/IN
the/DT
company/NN
,/,
indicated/VBD
that/IN
he/PRP
expects/VBZ
analysts/NNS
to/TO
raise/VB
their/PRP$
forecasts/NNS
for/IN
1989/CD
after/IN
the/DT
company/NN
releases/VBZ
its/PRP$
earnings/NNS
today/NN
./.
So/RB
far/RB
,/,
analysts/NNS
have/VBP
said/VBN
they/PRP
are/VBP
looking/VBG
for/IN
$/$
3.30/CD
to/TO
$/$
3.35/CD
a/DT
share/NN
./.
After/IN
today/NN
's/POS
announcement/NN
,/,
that/DT
range/NN
could/MD
increase/VB
to/TO
$/$
3.35/CD
to/TO
$/$
3.40/CD
a/DT
share/NN
./.
The/DT
official/NN
said/VBD
he/PRP
also/RB
would/MD
be/VB
comfortable/JJ
with/IN
that/DT
new/JJ
range/NN
./.
In/IN
1988/CD
,/,
the/DT
soft-drink/NN
giant/NN
earned/VBN
$/$
2.90/CD
a/DT
share/NN
./.
Results/NNS
for/IN
1989/CD
will/MD
include/VB
about/IN
40/CD
cents/NNS
a/DT
share/NN
from/IN
the/DT
dilutive/JJ
effects/NNS
of/IN
snack-food/NN
and/CC
bottling/NN
company/NN
acquisitions/NNS
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
the/DT
company/NN
closed/VBD
yesterday/NN
at/IN
$/$
57.125/CD
a/DT
share/NN
,/,
up/RB
$/$
3.125/CD
./.
The/DT
company/NN
said/VBD
third-quarter/JJ
sales/NNS
are/VBP
expected/VBN
to/TO
increase/VB
25/CD
%/NN
from/IN
$/$
3.12/CD
billion/CD
of/IN
last/JJ
year/NN
's/POS
third/JJ
quarter/NN
./.
Domestic/JJ
soft-drink/NN
bottler/NN
case/NN
sales/NNS
are/VBP
estimated/VBN
to/TO
have/VB
risen/VBN
only/RB
1/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
--/:
well/RB
below/IN
the/DT
4/CD
%/NN
to/TO
5/CD
%/NN
growth/NN
of/IN
recent/JJ
years/NNS
--/:
but/CC
about/IN
in/IN
line/NN
with/IN
the/DT
rest/NN
of/IN
the/DT
soft-drink/NN
industry/NN
./.
Mr./NNP
Calloway/NNP
blamed/VBD
the/DT
slower/JJR
volume/NN
on/IN
rainier/JJR
weather/NN
,/,
a/DT
dearth/NN
of/IN
new/JJ
products/NNS
in/IN
the/DT
industry/NN
and/CC
--/:
to/TO
a/DT
much/RB
lesser/JJR
extent/NN
--/:
pricing/NN
./.
PepsiCo/NNP
said/VBD
its/PRP$
soft-drink/NN
prices/NNS
were/VBD
about/IN
2/CD
%/NN
higher/JJR
in/IN
the/DT
quarter/NN
./.
Mr./NNP
Calloway/NNP
also/RB
noted/VBD
that/DT
soft-drink/NN
volume/NN
rose/VBD
a/DT
hefty/JJ
9/CD
%/NN
in/IN
last/JJ
year/NN
's/POS
third/JJ
quarter/NN
,/,
making/VBG
the/DT
comparison/NN
more/RBR
difficult/JJ
./.
International/JJ
soft-drink/NN
volume/NN
was/VBD
up/RB
about/IN
6/CD
%/NN
./.
Snack-food/NN
tonnage/NN
increased/VBD
a/DT
strong/JJ
7/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
while/IN
domestic/JJ
profit/NN
increased/VBN
in/IN
double/JJ
digits/NNS
,/,
Mr./NNP
Calloway/NNP
said/VBD
./.
Excluding/NNP
the/DT
British/JJ
snack-food/NN
business/NN
acquired/VBN
in/IN
July/NNP
,/,
snack-food/NN
international/JJ
tonnage/NN
jumped/VBD
40/CD
%/NN
,/,
with/IN
sales/NNS
strong/JJ
in/IN
Spain/NNP
,/,
Mexico/NNP
and/CC
Brazil/NNP
./.
Total/JJ
snack-food/NN
profit/NN
rose/VBD
30/CD
%/NN
./.
Led/VBN
by/IN
Pizza/NNP
Hut/NNP
and/CC
Taco/NNP
Bell/NNP
,/,
restaurant/NN
earnings/NNS
increased/VBN
about/IN
25/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
on/IN
a/DT
22/CD
%/NN
sales/NNS
increase/NN
./.
Same-store/JJ
sales/NNS
for/IN
Pizza/NNP
Hut/NNP
rose/VBD
about/IN
13/CD
%/NN
,/,
while/IN
Taco/NNP
Bell/NNP
's/POS
increased/VBN
22/CD
%/NN
,/,
as/IN
the/DT
chain/NN
continues/VBZ
to/TO
benefit/VB
from/IN
its/PRP$
price-value/NN
strategy/NN
./.
Taco/NNP
Bell/NNP
has/VBZ
turned/VBN
around/IN
declining/VBG
customer/NN
counts/NNS
by/IN
permanently/RB
lowering/VBG
the/DT
price/NN
of/IN
its/PRP$
tacos/NNS
./.
Same/JJ
store-sales/NN
for/IN
Kentucky/NNP
Fried/NNP
Chicken/NNP
,/,
which/WDT
has/VBZ
struggled/VBN
with/IN
increased/VBN
competition/NN
in/IN
the/DT
fast-food/NN
chicken/NN
market/NN
and/CC
a/DT
lack/NN
of/IN
new/JJ
products/NNS
,/,
rose/VBD
only/RB
1/CD
%/NN
./.
The/DT
operation/NN
,/,
which/WDT
has/VBZ
been/VBN
slow/JJ
to/TO
respond/VB
to/TO
consumers/NNS
'/POS
shifting/VBG
tastes/NNS
away/RB
from/IN
fried/JJ
foods/NNS
,/,
has/VBZ
been/VBN
developing/VBG
a/DT
grilled-chicken/JJ
product/NN
that/WDT
may/MD
be/VB
introduced/VBN
nationally/RB
at/IN
the/DT
end/NN
of/IN
next/JJ
year/NN
./.
The/DT
new/JJ
product/NN
has/VBZ
performed/VBN
well/RB
in/IN
a/DT
market/NN
test/NN
in/IN
Las/NNP
Vegas/NNP
,/,
Nev./NNP
,/,
Mr./NNP
Calloway/NNP
said/VBD
./.
After/IN
a/DT
four-year/JJ
,/,
$/$
7.7/CD
billion/CD
acquisition/NN
binge/NN
that/WDT
brought/VBD
a/DT
major/JJ
soft-drink/NN
company/NN
,/,
soda/NN
bottlers/NNS
,/,
a/DT
fast-food/NN
chain/NN
and/CC
an/DT
overseas/JJ
snack-food/NN
giant/NN
to/TO
Pepsi/NNP
,/,
Mr./NNP
Calloway/NNP
said/VBD
he/PRP
does/VBZ
n't/RB
expect/VB
any/DT
major/JJ
acquisition/NN
in/IN
the/DT
next/JJ
year/NN
or/CC
so/RB
./.
But/CC
,/,
``/``
You/PRP
never/RB
can/MD
tell/VB
,/,
''/''
he/PRP
added/VBD
,/,
``/``
you/PRP
have/VBP
to/TO
take/VB
advantage/NN
of/IN
opportunities/NNS
./.
''/''
President/NNP
Bush/NNP
chose/VBD
Martin/NNP
Allday/NNP
,/,
a/DT
longtime/JJ
friend/NN
from/IN
Texas/NNP
,/,
to/TO
be/VB
chairman/NN
of/IN
the/DT
Federal/NNP
Energy/NNP
Regulatory/NNP
Commission/NNP
./.
Mr./NNP
Allday/NNP
would/MD
succeed/VB
Martha/NNP
Hesse/NNP
,/,
who/WP
is/VBZ
resigning/VBG
./.
The/DT
White/NNP
House/NNP
said/VBD
Ms./NNP
Hesse/NNP
,/,
a/DT
Chicago/NNP
businesswoman/NN
who/WP
previously/RB
held/VBD
posts/NNS
at/IN
the/DT
Energy/NNP
Department/NNP
and/CC
FERC/NNP
,/,
is/VBZ
leaving/VBG
to/TO
become/VB
a/DT
vice/NN
president/NN
of/IN
First/NNP
Chicago/NNP
Corp/NNP
./.
Mr./NNP
Allday/NNP
,/,
an/DT
attorney/NN
in/IN
Midland/NNP
,/,
Texas/NNP
,/,
has/VBZ
been/VBN
solicitor/NN
at/IN
the/DT
Interior/NNP
Department/NNP
./.
He/PRP
met/VBD
Mr./NNP
Bush/NNP
in/IN
the/DT
1950s/NNS
,/,
when/WRB
the/DT
president/NN
was/VBD
a/DT
young/JJ
oil/NN
man/NN
in/IN
Midland/NNP
and/CC
Mr./NNP
Allday/NNP
was/VBD
a/DT
lawyer/NN
for/IN
an/DT
oil/NN
firm/NN
./.
The/DT
FERC/NNP
is/VBZ
a/DT
five-member/JJ
commission/NN
that/WDT
regulates/VBZ
billions/NNS
of/IN
dollars/NNS
of/IN
interstate/JJ
wholesale/JJ
energy/NN
transactions/NNS
./.
Mr./NNP
Allday/NNP
's/POS
appointment/NN
is/VBZ
subject/JJ
to/TO
confirmation/NN
by/IN
the/DT
Senate/NNP
./.
Administration/NN
officials/NNS
said/VBD
a/DT
date/NN
for/IN
Ms./NNP
Hesse/NNP
's/POS
departure/NN
has/VBZ
n't/RB
been/VBN
set/VBN
./.
CALIFORNIA/NNP
REAL/NNP
ESTATE/NNP
INVESTMENT/NNP
Corp./NNP
said/VBD
its/PRP$
directors/NNS
declared/VBD
a/DT
dividend/NN
of/IN
five/CD
cents/NNS
per/IN
Class/NN
A/NNP
common/JJ
stock/NN
payable/JJ
Nov./NNP
6/CD
to/TO
stock/VB
of/IN
record/NN
Oct./NNP
16/CD
./.
The/DT
dividend/NN
represents/VBZ
the/DT
balance/NN
of/IN
its/PRP$
regular/JJ
quarterly/JJ
payout/NN
of/IN
10/CD
cents/NNS
a/DT
share/NN
,/,
of/IN
which/WDT
half/NN
was/VBD
paid/VBN
July/NNP
17/CD
in/IN
a/DT
final/JJ
distribution/NN
prior/RB
to/TO
its/PRP$
merger/NN
with/IN
B.B./NNP
Real/NNP
Estate/NNP
Investment/NNP
Corp./NNP
,/,
also/RB
in/IN
July/NNP
./.
The/DT
company/NN
said/VBD
it/PRP
hopes/VBZ
to/TO
resume/VB
its/PRP$
schedule/NN
of/IN
regular/JJ
quarterly/JJ
dividends/NNS
at/IN
the/DT
end/NN
of/IN
this/DT
year/NN
./.
Hydro-Quebec/NNP
said/VBD
it/PRP
notified/VBD
Central/NNP
Maine/NNP
Power/NNP
Co./NNP
it/PRP
will/MD
cancel/VB
a/DT
$/$
4/CD
billion/CD
contract/NN
to/TO
supply/VB
electricity/NN
to/TO
the/DT
Maine/NNP
utility/NN
./.
The/DT
provincially/RB
owned/VBN
utility/NN
said/VBD
it/PRP
is/VBZ
tearing/VBG
up/RP
the/DT
deal/NN
because/IN
``/``
the/DT
contract/NN
's/POS
objectives/NNS
ca/MD
n't/RB
be/VB
fulfilled/VBN
./.
''/''
Hydro-Quebec/NNP
said/VBD
Maine/NNP
regulators/NNS
'/POS
refusal/NN
to/TO
approve/VB
the/DT
contract/NN
earlier/RB
this/DT
year/NN
halted/VBD
work/NN
on/IN
transmission/NN
lines/NNS
and/CC
stopped/VBD
negotiations/NNS
for/IN
resale/NN
of/IN
electricity/NN
carried/VBN
through/IN
Maine/NNP
to/TO
other/JJ
utilities/NNS
./.
``/``
It/PRP
would/MD
now/RB
be/VB
physically/RB
impossible/JJ
to/TO
begin/VB
deliveries/NNS
in/IN
1992/CD
,/,
''/''
a/DT
Hydro-Quebec/NNP
official/NN
said/VBD
./.
The/DT
contract/NN
was/VBD
to/TO
run/VB
from/IN
1992/CD
to/TO
2020/CD
./.
Under/IN
the/DT
contract/NN
Hydro-Quebec/NNP
was/VBD
to/TO
supply/VB
400/CD
megawatts/NNS
of/IN
power/NN
to/TO
Central/NNP
Maine/NNP
Power/NNP
starting/VBG
in/IN
1992/CD
,/,
600/CD
megawatts/NNS
starting/VBG
in/IN
1995/CD
and/CC
900/CD
megawatts/NNS
starting/VBG
in/IN
Hydro-Quebec/NNP
said/VBD
Maine/NNP
regulators/NNS
'/POS
refusal/NN
to/TO
approve/VB
the/DT
contract/NN
means/VBZ
Central/NNP
Maine/NNP
Power/NNP
has/VBZ
lost/VBN
its/PRP$
place/NN
in/IN
line/NN
./.
``/``
We/PRP
wo/MD
n't/RB
sign/VB
any/DT
new/JJ
contracts/NNS
deliveries/NNS
2000/CD
,/,
''/''
the/DT
Hydro-Quebec/NNP
official/NN
said/VBD
./.
He/PRP
said/VBD
Hydro-Quebec/NNP
already/RB
has/VBZ
some/DT
``/``
customers/NNS
in/IN
mind/NN
''/''
for/IN
the/DT
power/NN
that/WDT
was/VBD
to/TO
be/VB
delivered/VBN
to/TO
Maine/NNP
./.
``/``
Nothing/NN
has/VBZ
happened/VBN
since/IN
we/PRP
signed/VBD
the/DT
contract/NN
to/TO
undermine/VB
our/PRP$
conviction/NN
that/IN
Hydro-Quebec/NNP
was/VBD
the/DT
lowest-cost/JJS
,/,
most/RBS
environmentally/RB
acceptable/JJ
choice/NN
for/IN
meeting/VBG
a/DT
part/NN
of/IN
our/PRP$
customers/NNS
'/POS
energy/NN
needs/NNS
through/IN
the/DT
year/NN
2020/CD
,/,
''/''
said/VBD
Central/NNP
Maine/NNP
senior/JJ
vice/NN
president/NN
Donald/NNP
F./NNP
Kelly/NNP
./.
Central/NNP
Maine/NNP
said/VBD
it/PRP
is/VBZ
evaluating/VBG
``/``
many/JJ
energy/NN
options/NNS
''/''
to/TO
make/VB
up/RP
for/IN
the/DT
lost/VBN
future/NN
power/NN
,/,
including/VBG
new/JJ
energy/NN
generation/NN
and/CC
management/NN
proposals/NNS
from/IN
New/NNP
England/NNP
,/,
and/CC
possibly/RB
new/JJ
Canadian/JJ
purchases/NNS
./.
CHICAGO/NNP
Options/NNS
traders/NNS
were/VBD
among/IN
the/DT
big/JJ
victims/NNS
of/IN
Friday/NNP
's/POS
plunging/VBG
stock/NN
market/NN
,/,
including/VBG
one/CD
small/JJ
firm/NN
that/WDT
required/VBD
an/DT
emergency/NN
$/$
50/CD
million/CD
bailout/NN
./.
While/IN
Monday/NNP
's/POS
rebounding/VBG
markets/NNS
helped/VBD
other/JJ
investors/NNS
recoup/VB
losses/NNS
,/,
many/JJ
options/NNS
customers/NNS
and/CC
professional/JJ
traders/NNS
in/IN
stock-index/NN
options/NNS
and/CC
the/DT
options/NNS
on/IN
takeover/NN
stocks/NNS
were/VBD
left/VBN
with/IN
multimillion-dollar/JJ
losses/NNS
,/,
traders/NNS
here/RB
and/CC
in/IN
New/NNP
York/NNP
said/VBD
./.
Options/NNS
traders/NNS
were/VBD
hurt/VBN
worse/RBR
than/IN
others/NNS
on/IN
Friday/NNP
because/IN
of/IN
the/DT
highly/RB
volatile/JJ
nature/NN
of/IN
options/NNS
,/,
which/WDT
often/RB
rise/VBP
or/CC
fall/VBP
in/IN
value/NN
several/JJ
times/NNS
the/DT
amount/NN
of/IN
the/DT
price/NN
change/NN
in/IN
the/DT
individual/JJ
stock/NN
or/CC
index/NN
of/IN
stocks/NNS
on/IN
which/WDT
they/PRP
are/VBP
based/VBN
./.
Thus/RB
,/,
options/NNS
traders/NNS
Friday/NNP
were/VBD
stuck/VBN
with/IN
losses/NNS
that/WDT
also/RB
were/VBD
several/JJ
times/NNS
larger/JJR
than/IN
those/DT
suffered/VBN
by/IN
many/JJ
stock/NN
traders/NNS
in/IN
New/NNP
York/NNP
./.
Jeffrey/NNP
Miller/NNP
of/IN
Miller/NNP
Tabak/NNP
Hirsch/NNP
&/CC
Co./NNP
said/VBD
that/IN
given/VBN
the/DT
high/JJ
degree/NN
of/IN
leverage/NN
in/IN
the/DT
options/NNS
market/NN
,/,
it/PRP
is/VBZ
``/``
very/RB
easy/RB
for/IN
these/DT
guys/NNS
to/TO
get/VB
wiped/VBN
out/RB
./.
That/DT
may/MD
just/RB
be/VB
the/DT
nature/NN
of/IN
these/DT
highly/RB
leveraged/JJ
little/JJ
creatures/NNS
./.
''/''
An/DT
options/NNS
contract/NN
gives/VBZ
the/DT
holder/NN
the/DT
right/NN
to/TO
buy/VB
(/(
call/VB
)/)
or/CC
sell/VB
(/(
put/VB
)/)
a/DT
specific/JJ
amount/NN
of/IN
stock/NN
,/,
or/CC
in/IN
this/DT
case/NN
the/DT
value/NN
of/IN
a/DT
stock/NN
index/NN
,/,
based/VBN
on/IN
a/DT
predetermined/VBN
price/NN
within/IN
a/DT
given/VBN
time/NN
period/NN
./.
Options/NNS
traders/NNS
who/WP
,/,
in/IN
return/NN
for/IN
a/DT
small/JJ
fee/NN
,/,
or/CC
premium/NN
,/,
had/VBD
previously/RB
sold/VBN
put/JJ
options/NNS
on/IN
stocks/NNS
or/CC
stock/NN
indexes/NNS
were/VBD
forced/VBN
on/IN
Friday/NNP
to/TO
buy/VB
those/DT
contracts/NNS
back/RB
at/IN
the/DT
previously/RB
agreed/VBN
prices/NNS
,/,
which/WDT
were/VBD
substantially/RB
above/IN
those/DT
in/IN
the/DT
market/NN
as/IN
it/PRP
was/VBD
falling/VBG
./.
They/PRP
then/RB
had/VBD
no/DT
choice/NN
in/IN
many/JJ
cases/NNS
but/CC
to/TO
sell/VB
the/DT
contracts/NNS
at/IN
prevailing/VBG
prices/NNS
--/:
in/IN
most/JJS
cases/NNS
at/IN
a/DT
substantial/JJ
loss/NN
./.
The/DT
latest/JJS
round/NN
of/IN
losses/NNS
is/VBZ
likely/JJ
to/TO
be/VB
a/DT
serious/JJ
blow/NN
to/TO
the/DT
Chicago/NNP
Board/NNP
Options/NNPS
Exchange/NNP
,/,
which/WDT
has/VBZ
never/RB
fully/RB
recovered/VBN
from/IN
the/DT
aftershock/NN
of/IN
Black/NNP
Monday/NNP
,/,
when/WRB
investors/NNS
fled/VBD
the/DT
market/NN
because/IN
of/IN
huge/JJ
losses/NNS
./.
Making/VBG
matters/NNS
worse/RBR
was/VBD
the/DT
fact/NN
that/IN
late/JJ
Friday/NNP
afternoon/NN
the/DT
CBOE/NNP
halted/VBD
stock-index/NN
options/NNS
trading/NN
in/IN
step/NN
with/IN
the/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
's/POS
halt/NN
in/IN
stock-index/NN
futures/NNS
./.
But/CC
while/IN
the/DT
Merc/NNP
reopened/VBD
a/DT
half/NN
hour/NN
later/RB
,/,
the/DT
CBOE/NNP
remained/VBD
closed/JJ
,/,
leaving/VBG
many/JJ
options/NNS
traders/NNS
unable/JJ
to/TO
make/VB
trades/NNS
that/WDT
might/MD
have/VB
reduced/VBN
the/DT
losses/NNS
./.
CBOE/NNP
Chairman/NNP
Alger/NNP
``/``
Duke/NNP
''/''
Chapman/NN
,/,
said/VBD
that/IN
,/,
unlike/IN
the/DT
futures/NNS
market/NN
,/,
the/DT
options/NNS
exchange/NN
has/VBZ
to/TO
open/VB
in/IN
a/DT
rotation/NN
that/WDT
allows/VBZ
each/DT
different/JJ
options/NNS
series/NN
to/TO
trade/NN
./.
Exchange/NN
officials/NNS
reasoned/VBD
that/IN
they/PRP
would/MD
n't/RB
have/VB
been/VBN
able/JJ
to/TO
make/VB
such/JJ
a/DT
rotation/NN
with/IN
the/DT
time/NN
remaining/VBG
Friday/NNP
afternoon/NN
,/,
and/CC
with/IN
the/DT
stock-index/NN
futures/NNS
on/IN
the/DT
verge/NN
of/IN
closing/VBG
for/IN
a/DT
second/JJ
and/CC
final/JJ
time/NN
,/,
the/DT
CBOE/NNP
reasoned/VBD
that/IN
its/PRP$
best/JJS
course/NN
was/VBD
to/TO
remain/VB
closed/JJ
./.
The/DT
damage/NN
was/VBD
so/RB
bad/JJ
at/IN
Fossett/NNP
Corp./NNP
,/,
an/DT
options/NNS
trading/NN
firm/NN
here/RB
,/,
that/IN
it/PRP
was/VBD
forced/VBN
to/TO
transfer/VB
its/PRP$
accounts/NNS
to/TO
First/NNP
Options/NNPS
of/IN
Chicago/NNP
,/,
a/DT
unit/NN
of/IN
Continental/NNP
Bank/NNP
Corp./NNP
,/,
as/IN
a/DT
result/NN
of/IN
options/NNS
trading/NN
losses/NNS
./.
Fosset/NNP
so/RB
far/RB
is/VBZ
the/DT
only/JJ
member/NN
of/IN
a/DT
financial/JJ
exchange/NN
to/TO
be/VB
forced/VBN
to/TO
be/VB
taken/VBN
over/RB
by/IN
another/DT
firm/NN
as/IN
a/DT
result/NN
of/IN
Friday/NNP
's/POS
rout/NN
./.
Fossett/NNP
still/RB
had/VBD
several/JJ
million/CD
dollars/NNS
in/IN
capital/NN
left/VBN
after/IN
Friday/NNP
's/POS
close/NN
of/IN
trading/NN
,/,
but/CC
not/RB
enough/RB
that/IN
regulators/NNS
,/,
worried/VBN
about/IN
another/DT
potential/JJ
market/NN
plunge/NN
yesterday/NN
,/,
would/MD
let/VB
it/PRP
reopen/VB
for/IN
trading/NN
,/,
options/NNS
exchange/NN
officials/NNS
said/VBD
./.
Thus/RB
,/,
in/IN
an/DT
unprecedented/JJ
arrangement/NN
underscoring/VBG
the/DT
seriousness/NN
of/IN
the/DT
transfer/NN
,/,
the/DT
CBOE/NNP
,/,
the/DT
American/NNP
Stock/NNP
Exchange/NNP
and/CC
the/DT
Options/NNPS
Clearing/NNP
Corp./NNP
,/,
as/RB
well/RB
as/IN
the/DT
firm/NN
's/POS
owner/NN
,/,
Stephen/NNP
Fossett/NNP
,/,
put/VBN
up/IN
a/DT
total/NN
of/IN
$/$
50/CD
million/CD
to/TO
guarantee/VB
the/DT
customer/NN
positions/NNS
being/VBG
transferred/VBN
to/TO
the/DT
bank/NN
holding/VBG
company/NN
subsidiary/NN
in/IN
case/NN
the/DT
market/NN
plunged/VBD
again/RB
yesterday/RB
./.
S./NNP
Waite/NNP
Rawls/NNP
III/NNP
,/,
vice/NN
chairman/NN
of/IN
Continental/NNP
Bank/NNP
,/,
First/NNP
Options/NNP
'/POS
parent/NN
company/NN
,/,
said/VBD
the/DT
firm/NN
took/VBD
on/RP
about/IN
160/CD
accounts/NNS
formerly/RB
held/VBN
by/IN
Fossett/NNP
,/,
almost/RB
all/DT
of/IN
them/PRP
belonging/VBG
to/TO
professional/JJ
floor/NN
traders/NNS
./.
``/``
Steve/NNP
and/CC
his/PRP$
firm/NN
were/VBD
still/RB
worth/JJ
a/DT
lot/NN
of/IN
money/NN
,/,
''/''
Mr./NNP
Rawls/NNP
said/VBD
./.
``/``
A/DT
package/NN
of/IN
credit/NN
support/NN
was/VBD
put/VBN
together/RB
--/:
including/VBG
the/DT
assets/NNS
of/IN
Steve/NNP
and/CC
his/PRP$
firm/NN
./.
''/''
The/DT
bailout/NN
was/VBD
cobbled/VBN
together/RB
over/IN
the/DT
weekend/NN
,/,
with/IN
officials/NNS
from/IN
the/DT
Federal/NNP
Reserve/NNP
Board/NNP
,/,
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
,/,
Comptroller/NNP
of/IN
the/DT
Currency/NNP
and/CC
Treasury/NNP
as/RB
well/RB
as/IN
the/DT
options/NNS
exchanges/NNS
./.
``/``
It/PRP
was/VBD
great/JJ
to/TO
have/VB
the/DT
luxury/NN
of/IN
time/NN
,/,
''/''
Mr./NNP
Rawls/NNP
said/VBD
./.
At/IN
one/CD
point/NN
,/,
an/DT
options/NNS
industry/NN
official/NN
had/VBD
to/TO
talk/VB
the/DT
Federal/NNP
Reserve/NNP
Bank/NNP
of/IN
Chicago/NNP
's/POS
night/NN
watchman/NN
into/IN
giving/VBG
him/PRP
the/DT
home/NN
phone/NN
number/NN
of/IN
Silas/NNP
Keene/NNP
,/,
Chicago/NNP
Fed/NNP
president/NN
./.
First/NNP
Options/NNP
did/VBD
n't/RB
have/VB
to/TO
put/VB
any/DT
money/NN
into/IN
the/DT
bailout/NN
./.
Yesterday/NN
's/POS
rally/NN
in/IN
the/DT
stock/NN
,/,
futures/NNS
and/CC
options/NNS
markets/NNS
led/VBD
CBOE/NNP
and/CC
Amex/NNP
officials/NNS
to/TO
conclude/VB
that/IN
the/DT
$/$
50/CD
million/CD
in/IN
guarantees/NNS
almost/RB
certainly/RB
wo/MD
n't/RB
need/VB
to/TO
be/VB
tapped/VBN
by/IN
First/NNP
Options/NNPS
./.
The/DT
Fossett/NNP
firm/NN
had/VBD
some/DT
losses/NNS
and/CC
liquidity/NN
problems/NNS
during/IN
the/DT
October/NNP
1987/CD
crash/NN
as/IN
well/RB
,/,
Mr./NNP
Rawls/NNP
said/VBD
./.
A/DT
federal/JJ
official/NN
said/VBD
that/IN
Continental/NNP
Bank/NNP
worked/VBD
with/IN
securities/NNS
and/CC
banking/NN
regulators/NNS
over/IN
the/DT
weekend/NN
to/TO
fashion/VB
the/DT
Fossett/NNP
bailout/NN
,/,
but/CC
that/IN
conditions/NNS
were/VBD
n't/RB
dictated/VBN
by/IN
those/DT
agencies/NNS
./.
``/``
It/PRP
was/VBD
their/PRP$
business/NN
decision/NN
,/,
''/''
the/DT
official/NN
said/VBD
./.
Officials/NNS
at/IN
Options/NNPS
Clearing/NNP
Corp./NNP
,/,
which/WDT
processes/VBZ
all/DT
options/NNS
trades/NNS
for/IN
U.S./NNP
exchanges/NNS
,/,
said/VBD
that/IN
the/DT
$/$
50/CD
million/CD
guarantee/NN
was/VBD
unprecedented/JJ
,/,
but/CC
was/VBD
necessary/JJ
to/TO
help/VB
insure/VB
the/DT
integrity/NN
of/IN
the/DT
options/NNS
markets/NNS
./.
``/``
It/PRP
was/VBD
an/DT
extraordinary/JJ
situation/NN
that/WDT
needed/VBD
extraordinary/JJ
steps/NNS
,/,
''/''
said/VBD
Paul/NNP
Stevens/NNP
,/,
OCC/NNP
president/NN
and/CC
chief/JJ
operating/VBG
officer/NN
./.
Mr./NNP
Stevens/NNP
declined/VBD
to/TO
give/VB
the/DT
specific/JJ
contributions/NNS
to/TO
the/DT
$/$
50/CD
million/CD
guarantee/NN
from/IN
each/DT
participant/NN
./.
But/CC
CBOE/NNP
and/CC
Amex/NNP
officials/NNS
said/VBD
that/IN
Options/NNPS
Clearing/NNP
Corp./NNP
contributed/VBD
$/$
20/CD
million/CD
to/TO
the/DT
guarantee/NN
,/,
the/DT
CBOE/NNP
put/VBD
up/RP
$/$
8/CD
million/CD
,/,
the/DT
Amex/NNP
added/VBD
$/$
4/CD
million/CD
and/CC
$/$
18/CD
million/CD
came/VBD
from/IN
Mr./NNP
Fossett/NNP
's/POS
own/JJ
assets/NNS
./.
Mr./NNP
Fossett/NNP
could/MD
n't/RB
be/VB
reached/VBN
to/TO
comment/VB
./.
Debora/NNP
Foster/NNP
takes/VBZ
off/RP
her/PRP$
necklace/NN
,/,
settles/VBZ
herself/PRP
on/IN
a/DT
padded/JJ
chair/NN
and/CC
gently/RB
leans/VBZ
forward/RB
./.
With/IN
a/DT
jazz-piano/JJ
tape/NN
playing/VBG
softly/RB
in/IN
the/DT
background/NN
,/,
the/DT
soothing/VBG
hands/NNS
of/IN
Sabina/NNP
Vidunas/NNP
begin/VBP
to/TO
work/VB
on/IN
Ms./NNP
Foster/NNP
's/POS
neck/NN
and/CC
shoulders/NNS
./.
``/``
It/PRP
's/VBZ
like/IN
an/DT
oasis/NN
in/IN
this/DT
room/NN
,/,
''/''
Ms./NNP
Foster/NNP
purrs/VBZ
./.
The/DT
room/NN
in/IN
question/NN
is/VBZ
the/DT
directors/NNS
'/POS
lounge/NN
of/IN
H.J./NNP
Heinz/NNP
Co./NNP
,/,
60/CD
floors/NNS
above/IN
the/DT
bustle/NN
of/IN
Pittsburgh/NNP
./.
There/RB
,/,
amid/IN
oil/NN
paintings/NNS
and/CC
marble/NN
tables/NNS
,/,
massages/NNS
are/VBP
administered/VBN
every/DT
Wednesday/NNP
./.
``/``
On/IN
days/NNS
that/IN
I/PRP
'm/VBP
really/RB
busy/JJ
,/,
''/''
says/VBZ
Ms./NNP
Foster/NNP
,/,
who/WP
works/VBZ
in/IN
public/JJ
relations/NNS
for/IN
the/DT
company/NN
,/,
``/``
it/PRP
seems/VBZ
decadent/JJ
to/TO
take/VB
time/NN
off/RP
for/IN
a/DT
massage/NN
./.
''/''
Although/IN
such/JJ
sessions/NNS
may/MD
never/RB
replace/VB
coffee/NN
breaks/NNS
,/,
on-site/JJ
massage/NN
,/,
as/IN
it/PRP
is/VBZ
known/VBN
in/IN
the/DT
trade/NN
,/,
is/VBZ
certainly/RB
infiltrating/VBG
corporate/JJ
America/NNP
./.
In/IN
some/DT
companies/NNS
middle/JJ
managers/NNS
sneak/VBP
massage/NN
therapists/NNS
into/IN
the/DT
office/NN
,/,
fearful/JJ
that/IN
upper-level/JJ
executives/NNS
wo/MD
n't/RB
approve/VB
./.
Ms./NNP
Foster/NNP
's/POS
indulgence/NN
is/VBZ
nothing/NN
like/IN
the/DT
oily/JJ
,/,
hour-long/JJ
rubfests/NNS
enjoyed/VBN
by/IN
spa/NN
visitors/NNS
./.
Nor/CC
does/VBZ
it/PRP
at/IN
all/DT
resemble/VB
(/(
despite/IN
what/WP
some/DT
executives/NNS
think/VBP
)/)
the/DT
more/RBR
intimate/JJ
variety/NN
offered/VBN
at/IN
specialty/NN
parlors/NNS
in/IN
bad/JJ
parts/NNS
of/IN
town/NN
./.
On/IN
the/DT
contrary/NN
,/,
office/NN
rubdowns/NNS
usually/RB
take/VBP
place/NN
in/IN
dimly/RB
lighted/JJ
conference/NN
rooms/NNS
,/,
where/WRB
stressed-out/JJ
employees/NNS
relax/VBP
in/IN
specially/RB
designed/VBN
chairs/NNS
,/,
fully/RB
clothed/VBN
./.
The/DT
massages/NNS
last/VBP
15/CD
minutes/NNS
and/CC
typically/RB
cost/VBP
about/IN
$/$
10/CD
./.
Some/DT
companies/NNS
,/,
including/VBG
Heinz/NNP
,/,
even/RB
pay/VBP
part/NN
of/IN
the/DT
fee/NN
./.
Ms./NNP
Vidunas/NNP
has/VBZ
been/VBN
seeing/VBG
some/DT
15/CD
clients/NNS
a/DT
visit/NN
since/IN
the/DT
program/NN
was/VBD
started/VBN
at/IN
Heinz/NNP
last/JJ
year/NN
./.
Anthony/NNP
J.F./NNP
O'Reilly/NNP
,/,
the/DT
company/NN
's/POS
chairman/NN
,/,
swears/VBZ
by/IN
her/PRP$
firm/JJ
touch/NN
,/,
saying/VBG
regular/JJ
massages/NNS
are/VBP
a/DT
balm/NN
for/IN
his/PRP$
old/JJ
football/NN
injuries/NNS
./.
Massage/NN
advocates/NNS
say/VBP
that/IN
kneading/VBG
the/DT
head/NN
,/,
shoulders/NNS
,/,
neck/NN
and/CC
back/NN
can/MD
go/VB
a/DT
long/JJ
way/NN
toward/IN
easing/VBG
tension/NN
and/CC
improving/VBG
morale/NN
./.
They/PRP
also/RB
insist/VBP
that/IN
touching/VBG
is/VBZ
a/DT
basic/JJ
need/NN
,/,
as/RB
powerful/JJ
as/IN
the/DT
need/NN
for/IN
food/NN
or/CC
sleep/NN
,/,
and/CC
that/IN
the/DT
office/NN
is/VBZ
as/RB
good/JJ
a/DT
place/NN
as/IN
any/DT
to/TO
do/VB
it/PRP
./.
``/``
The/DT
blood/NN
flows/VBZ
to/TO
your/PRP$
head/NN
,/,
you/PRP
feel/VBP
lightheaded/JJ
and/CC
you/PRP
do/VBP
n't/RB
feel/VB
tension/NN
around/IN
the/DT
head/NN
or/CC
neck/NN
,/,
''/''
says/VBZ
Minnie/NNP
Morey/NNP
,/,
an/DT
operations/NNS
supervisor/NN
at/IN
the/DT
Social/NNP
Security/NNP
office/NN
in/IN
Grand/NNP
Rapids/NNPS
,/,
Mich./NNP
,/,
where/WRB
massages/NNS
began/VBD
last/JJ
month/NN
./.
``/``
When/WRB
you/PRP
leave/VBP
the/DT
room/NN
after/IN
your/PRP$
massage/NN
,/,
people/NNS
say/VBP
you/PRP
look/VBP
like/IN
you/PRP
're/VBP
glowing/VBG
./.
''/''
Adds/VBZ
Candice/NNP
Ohlman/NNP
,/,
the/DT
35-year-old/JJ
masseuse/NN
who/WP
plies/VBZ
her/PRP$
trade/NN
in/IN
the/DT
Grand/NNP
Rapids/NNPS
office/NN
,/,
``/``
They/PRP
fall/VBP
in/IN
love/NN
with/IN
my/PRP$
hands/NNS
./.
''/''
Not/RB
everyone/NN
,/,
however/RB
,/,
is/VBZ
at/IN
ease/NN
with/IN
office/NN
massage/NN
./.
Three/CD
years/NNS
ago/RB
,/,
the/DT
Internal/NNP
Revenue/NNP
Service/NNP
's/POS
office/NN
in/IN
San/NNP
Jose/NNP
,/,
Calif./NNP
,/,
opened/VBD
its/PRP$
doors/NNS
to/TO
on-site/JJ
massage/NN
./.
And/CC
even/RB
though/IN
employees/NNS
paid/VBD
the/DT
bill/NN
,/,
taxpayers/NNS
grumbled/VBD
./.
``/``
Sometimes/RB
,/,
with/IN
the/DT
release/NN
of/IN
stress/NN
,/,
you/PRP
hear/VBP
`/``
oohs/UH
'/:
and/CC
`/``
ahs/UH
'/:
coming/VBG
out/IN
of/IN
the/DT
room/NN
,/,
''/''
explains/VBZ
Morgan/NNP
Banks/NNP
,/,
the/DT
agency/NN
's/POS
health/NN
specialist/NN
./.
``/``
And/CC
you/PRP
ca/MD
n't/RB
have/VB
taxpayers/NNS
coming/VBG
into/IN
an/DT
audit/NN
hearing/VBG
`/``
oohs/UH
'/:
and/CC
`/``
ahs/UH
./.
'/''
''/''
Last/JJ
month/NN
,/,
the/DT
complaints/NNS
intensified/VBN
and/CC
the/DT
massages/NNS
ended/VBN
./.
``/``
Now/RB
we/PRP
're/VBP
looking/VBG
for/IN
a/DT
room/NN
with/IN
thicker/JJR
walls/NNS
,/,
''/''
Ms./NNP
Banks/NNP
says/VBZ
./.
Massage/NN
also/RB
has/VBZ
an/DT
image/NN
problem/NN
to/TO
contend/VB
with/IN
./.
Some/DT
masseurs/NNS
have/VBP
tried/VBN
to/TO
get/VB
around/IN
this/DT
by/IN
calling/VBG
themselves/PRP
``/``
bodyworkers/NNS
''/''
and/CC
describing/VBG
their/PRP$
office/NN
visits/NNS
as/IN
``/``
reinvigoration/NN
breaks/NNS
./.
''/''
But/CC
massage/NN
,/,
no/DT
matter/NN
how/WRB
chaste/JJ
,/,
is/VBZ
still/RB
associated/JJ
in/IN
many/JJ
minds/NNS
with/IN
seedy/JJ
fronts/NNS
for/IN
prostitution/NN
,/,
and/CC
that/DT
makes/VBZ
some/DT
executives/NNS
nervous/JJ
./.
Last/JJ
year/NN
,/,
the/DT
research/NN
and/CC
development/NN
division/NN
of/IN
Weyerhaeuser/NNP
Co./NNP
,/,
the/DT
large/JJ
wood-products/NNS
concern/NN
,/,
invited/VBD
a/DT
masseuse/NN
to/TO
its/PRP$
Tacoma/NNP
,/,
Wash./NNP
,/,
offices/NNS
./.
Phil/NNP
Harms/NNP
,/,
a/DT
software/NN
engineer/NN
,/,
was/VBD
an/DT
eager/JJ
customer/NN
./.
``/``
You/PRP
build/VBP
up/RP
a/DT
lot/NN
of/IN
tension/NN
working/VBG
at/IN
a/DT
terminal/NN
all/DT
day/NN
,/,
''/''
he/PRP
says/VBZ
./.
But/CC
after/IN
about/IN
eight/CD
months/NNS
,/,
the/DT
vice/NN
president/NN
of/IN
the/DT
division/NN
,/,
Ed/NNP
Soule/NNP
,/,
learned/VBD
about/IN
the/DT
sessions/NNS
and/CC
brought/VBD
them/PRP
to/TO
a/DT
halt/NN
./.
Mr./NNP
Soule/NNP
says/VBZ
his/PRP$
only/JJ
beef/NN
was/VBD
that/IN
the/DT
massages/NNS
were/VBD
being/VBG
given/VBN
in/IN
a/DT
company/NN
conference/NN
room/NN
;/:
the/DT
department/NN
's/POS
supervised/JJ
health/NN
facility/NN
would/MD
have/VB
been/VBN
fine/JJ
./.
``/``
In/IN
my/PRP$
view/NN
,/,
{/(
massages/NNS
an/DT
appropriate/JJ
mixture/NN
of/IN
males/NNS
and/CC
females/NNS
around/IN
,/,
''/''
he/PRP
says/VBZ
./.
Given/VBN
such/JJ
attitudes/NNS
,/,
some/DT
corporate/JJ
masseurs/NNS
prefer/VBP
to/TO
go/VB
about/IN
their/PRP$
business/NN
quietly/RB
./.
Russell/NNP
Borner/NNP
of/IN
Park/NNP
Ridge/NNP
,/,
N.J./NNP
,/,
says/VBZ
he/PRP
has/VBZ
been/VBN
working/VBG
for/IN
the/DT
past/JJ
year/NN
at/IN
a/DT
huge/JJ
chemical/NN
and/CC
manufacturing/NN
concern/NN
in/IN
New/NNP
York/NNP
--/:
unbeknownst/JJ
to/TO
the/DT
company/NN
's/POS
executives/NNS
./.
He/PRP
visits/VBZ
the/DT
same/JJ
department/NN
every/DT
two/CD
or/CC
three/CD
weeks/NNS
./.
His/PRP$
massage/NN
chair/NN
is/VBZ
kept/VBN
in/IN
a/DT
closet/NN
,/,
and/CC
a/DT
secretary/NN
escorts/VBZ
him/PRP
past/RB
security/NN
./.
``/``
This/DT
is/VBZ
common/JJ
with/IN
a/DT
lot/NN
of/IN
large/JJ
companies/NNS
,/,
''/''
says/VBZ
Mr./NNP
Borner/NNP
,/,
who/WP
worked/VBD
for/IN
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
Co./NNP
for/IN
23/CD
years/NNS
before/IN
choosing/VBG
his/PRP$
current/JJ
trade/NN
./.
Managers/NNS
,/,
he/PRP
contends/VBZ
,/,
``/``
are/VBP
afraid/JJ
how/WRB
they/PRP
're/VBP
going/VBG
to/TO
look/VB
in/IN
the/DT
eyes/NNS
of/IN
their/PRP$
peers/NNS
./.
My/PRP$
vision/NN
is/VBZ
to/TO
change/VB
human/JJ
consciousness/NN
towards/IN
touch/NN
./.
My/PRP$
attitude/NN
is/VBZ
:/:
Let/VB
's/PRP
come/VB
out/IN
of/IN
the/DT
closet/NN
./.
''/''
Occasionally/RB
,/,
all/DT
that/WDT
's/VBZ
needed/VBN
is/VBZ
a/DT
little/RB
coaxing/VBG
./.
Elisa/NNP
Byler/NNP
,/,
a/DT
St./NNP
Louis/NNP
masseuse/NN
,/,
won/VBN
over/IN
officials/NNS
at/IN
Emerson/NNP
Electric/NNP
Co./NNP
,/,
a/DT
maker/NN
of/IN
electrical/JJ
and/CC
electronic/JJ
equipment/NN
,/,
by/IN
providing/VBG
documents/NNS
and/CC
other/JJ
articles/NNS
trumpeting/VBG
the/DT
therapeutic/JJ
benefits/NNS
of/IN
massage/NN
./.
She/PRP
notes/VBZ
that/IN
she/PRP
also/RB
stresses/VBZ
professionalism/NN
during/IN
her/PRP$
weekly/JJ
visits/NNS
./.
``/``
I/PRP
pull/VBP
my/PRP$
hair/NN
back/RB
,/,
wear/VBP
a/DT
little/JJ
makeup/NN
and/CC
look/VBP
corporate/JJ
,/,
''/''
says/VBZ
Ms./NNP
Byler/NNP
,/,
who/WP
has/VBZ
been/VBN
visiting/VBG
Emerson/NNP
since/IN
January/NNP
./.
``/``
If/IN
I/PRP
go/VBP
in/IN
there/RB
as/IN
I/PRP
normally/RB
dress/VBP
,/,
they/PRP
'd/MD
ask/VB
,/,
`/``
Who/WP
is/VBZ
this/DT
hippie/NN
?/.
'/''
''/''
The/DT
self-proclaimed/JJ
father/NN
of/IN
on-site/JJ
massage/NN
is/VBZ
David/NNP
Palmer/NNP
,/,
a/DT
41-year-old/JJ
San/NNP
Francisco/NNP
masseur/NN
whose/WP$
mission/NN
is/VBZ
to/TO
save/VB
the/DT
touch-starved/JJ
masses/NNS
./.
To/TO
help/VB
do/VB
this/DT
,/,
Mr./NNP
Palmer/NNP
developed/VBD
a/DT
portable/JJ
massage/NN
chair/NN
three/CD
years/NNS
ago/RB
that/IN
he/PRP
hopes/VBZ
will/MD
bring/VB
``/``
structured/JJ
touching/NN
''/''
into/IN
mainstream/NN
America/NNP
./.
``/``
The/DT
culture/NN
is/VBZ
not/RB
ready/JJ
to/TO
take/VB
off/RP
its/PRP$
clothes/NNS
,/,
lie/VB
down/RB
and/CC
be/VB
touched/VBN
for/IN
an/DT
hour/NN
for/IN
$/$
45/CD
,/,
''/''
he/PRP
says/VBZ
./.
``/``
The/DT
idea/NN
is/VBZ
to/TO
keep/VB
the/DT
clothes/NNS
on/RP
and/CC
to/TO
keep/VB
people/NNS
seated/VBN
./.
The/DT
chair/NN
is/VBZ
a/DT
way/NN
to/TO
package/VB
massage/NN
./.
''/''
Sitting/VBG
in/IN
one/CD
of/IN
Mr./NNP
Palmer/NNP
's/POS
chairs/NNS
,/,
which/WDT
cost/VBD
$/$
425/CD
and/CC
have/VBP
since/IN
been/VBN
copied/VBN
by/IN
others/NNS
,/,
is/VBZ
a/DT
bit/NN
like/IN
straddling/VBG
a/DT
recliner/NN
./.
Customers/NNS
lean/VBP
forward/RB
,/,
rest/VBP
their/PRP$
knees/NNS
on/IN
side/NN
supports/NNS
and/CC
bury/VBP
their/PRP$
face/NN
in/IN
padding/NN
on/IN
the/DT
back/NN
of/IN
the/DT
chair/NN
./.
Ms./NNP
Ohlman/NNP
,/,
the/DT
Grand/NNP
Rapids/NNP
masseuse/NN
,/,
says/VBZ
she/PRP
has/VBZ
heard/VBN
the/DT
odd-looking/JJ
contraption/NN
compared/VBN
to/TO
something/NN
out/IN
of/IN
the/DT
Spanish/NNP
Inquisition/NNP
./.
Mr./NNP
Palmer/NNP
,/,
who/WP
serves/VBZ
as/IN
president/NN
of/IN
the/DT
On-Site/NNP
Massage/NNP
Association/NNP
and/CC
writes/VBZ
an/DT
industry/NN
newsletter/NN
,/,
says/VBZ
some/DT
4,000/CD
practitioners/NNS
--/:
out/IN
of/IN
about/IN
50,000/CD
certified/JJ
masseurs/NNS
across/IN
the/DT
country/NN
--/:
now/RB
use/VBP
massage/NN
chairs/NNS
in/IN
the/DT
workplace/NN
,/,
as/RB
well/RB
as/IN
on/IN
street/NN
corners/NNS
,/,
in/IN
airports/NNS
and/CC
malls/NNS
,/,
and/CC
at/IN
conventions/NNS
and/CC
other/JJ
gatherings/NNS
where/WRB
weary/JJ
people/NNS
can/MD
be/VB
found/VBN
./.
Scot/NNP
MacInnis/NNP
,/,
a/DT
masseur/NN
in/IN
Boulder/NNP
,/,
Colo./NNP
,/,
had/VBD
a/DT
scary/JJ
experience/NN
while/IN
massaging/VBG
a/DT
man/NN
in/IN
a/DT
natural-foods/NNS
supermarket/NN
as/IN
part/NN
of/IN
a/DT
store/NN
promotion/NN
./.
Three/CD
minutes/NNS
into/IN
the/DT
massage/NN
,/,
the/DT
man/NN
curled/VBD
up/RB
,/,
began/VBD
shaking/VBG
and/CC
turned/VBD
red/JJ
./.
Paramedics/NNS
were/VBD
called/VBN
./.
A/DT
week/NN
later/RB
,/,
the/DT
man/NN
told/VBD
Mr./NNP
MacInnis/NNP
he/PRP
had/VBD
suffered/VBN
a/DT
mild/JJ
heart/NN
attack/NN
unrelated/JJ
to/TO
the/DT
massage/NN
./.
``/``
It/PRP
was/VBD
a/DT
powerful/JJ
point/NN
in/IN
my/PRP$
career/NN
,/,
''/''
says/VBZ
the/DT
31-year-old/JJ
Mr./NNP
MacInnis/NNP
,/,
who/WP
has/VBZ
since/IN
taken/VBN
out/RP
a/DT
$/$
1/CD
million/CD
liability/NN
policy/NN
for/IN
his/PRP$
business/NN
./.
``/``
But/CC
he/PRP
pulled/VBD
through/RB
,/,
and/CC
after/IN
the/DT
ambulance/NN
left/VBD
,/,
there/EX
were/VBD
still/RB
six/CD
people/NNS
in/IN
line/NN
waiting/VBG
for/IN
a/DT
massage/NN
./.
The/DT
next/JJ
woman/NN
was/VBD
older/JJR
,/,
and/CC
I/PRP
was/VBD
afraid/JJ
to/TO
touch/VB
her/PRP
./.
But/CC
it/PRP
's/VBZ
like/IN
falling/VBG
off/RB
a/DT
horse/NN
and/CC
getting/VBG
back/RB
on/RB
./.
''/''
Despite/IN
the/DT
number/NN
of/IN
fans/NNS
that/IN
office/NN
massage/NN
has/VBZ
won/VBN
,/,
some/DT
purists/NNS
look/VBP
down/RB
on/IN
it/PRP
,/,
arguing/VBG
that/IN
naked/JJ
,/,
full-body/JJ
rubs/NNS
are/VBP
the/DT
only/JJ
way/NN
to/TO
go/VB
./.
Linda/NNP
Aldridge/NNP
,/,
who/WP
does/VBZ
full-body/JJ
work/NN
in/IN
Pittsburgh/NNP
,/,
says/VBZ
that/IN
while/IN
on-site/JJ
massage/NN
is/VBZ
better/JJR
than/IN
nothing/NN
,/,
tired/JJ
workers/NNS
should/MD
realize/VB
it/PRP
is/VBZ
only/RB
the/DT
tip/NN
of/IN
the/DT
iceberg/NN
./.
``/``
Whole/JJ
areas/NNS
of/IN
their/PRP$
bodies/NNS
are/VBP
neglected/VBN
,/,
''/''
she/PRP
says/VBZ
,/,
adding/VBG
that/IN
clothes/NNS
ruin/VBP
the/DT
experience/NN
./.
``/``
There/EX
's/VBZ
nothing/NN
like/IN
skin/NN
to/TO
skin/NN
./.
''/''
In/IN
what/WP
is/VBZ
believed/VBN
to/TO
be/VB
the/DT
first/JJ
cancellation/NN
of/IN
a/DT
loan/NN
to/TO
China/NNP
since/IN
the/DT
June/NNP
4/CD
killings/NNS
in/IN
Beijing/NNP
,/,
an/DT
international/JJ
bank/NN
syndicate/NN
has/VBZ
terminated/VBN
a/DT
$/$
55/CD
million/CD
credit/NN
for/IN
a/DT
Shanghai/NNP
property/NN
project/NN
./.
The/DT
syndicate/NN
,/,
led/VBN
by/IN
Schroders/NNP
Asia/NNP
Ltd./NNP
,/,
agreed/VBD
last/JJ
November/NNP
to/TO
provide/VB
the/DT
loan/NN
to/TO
Asia/NNP
Development/NNP
Corp./NNP
,/,
a/DT
U.S./NNP
property/NN
developer/NN
./.
But/CC
several/JJ
weeks/NNS
ago/RB
,/,
in/IN
the/DT
wake/NN
of/IN
the/DT
Beijing/NNP
killings/NNS
,/,
the/DT
loan/NN
was/VBD
canceled/VBN
,/,
according/VBG
to/TO
bankers/NNS
and/CC
executives/NNS
close/RB
to/TO
the/DT
project/NN
./.
Asia/NNP
Development/NNP
and/CC
Schroders/NNP
declined/VBD
to/TO
comment/VB
on/IN
the/DT
move/NN
./.
Lenders/NNS
had/VBD
doubts/NNS
about/IN
the/DT
project/NN
even/RB
before/IN
June/NNP
4/CD
,/,
but/CC
the/DT
harsh/JJ
crackdown/NN
,/,
which/WDT
caused/VBD
many/JJ
businesses/NNS
to/TO
reassess/VB
their/PRP$
China/NNP
transactions/NNS
,/,
``/``
gave/VBD
the/DT
banks/NNS
the/DT
out/NN
they/PRP
wanted/VBD
,/,
''/''
says/VBZ
an/DT
official/JJ
close/RB
to/TO
the/DT
Shanghai/NNP
venture/NN
./.
The/DT
decision/NN
to/TO
cancel/VB
the/DT
loan/NN
exemplifies/VBZ
the/DT
tough/JJ
attitude/NN
bankers/NNS
have/VBP
taken/VBN
toward/IN
China/NNP
since/IN
June/NNP
4/CD
./.
While/IN
some/DT
commercial/JJ
lending/NN
has/VBZ
resumed/VBN
,/,
international/JJ
lenders/NNS
remain/VBP
nervous/JJ
about/IN
China/NNP
's/POS
economic/JJ
troubles/NNS
and/CC
foreign/JJ
debt/NN
--/:
$/$
40/CD
billion/CD
at/IN
the/DT
end/NN
of/IN
1988/CD
./.
Many/JJ
loans/NNS
are/VBP
being/VBG
renegotiated/VBN
,/,
especially/RB
those/DT
tied/VBN
to/TO
the/DT
hotel/NN
sector/NN
,/,
which/WDT
has/VBZ
been/VBN
hit/VBN
hard/RB
by/IN
a/DT
post-June/JJ
4/CD
tourism/NN
slump/NN
./.
Many/JJ
bankers/NNS
view/VBP
property-sector/NN
loans/NNS
as/RB
particularly/RB
risky/JJ
./.
The/DT
canceled/JJ
Shanghai/NNP
loan/NN
leaves/VBZ
Asia/NNP
Development/NNP
,/,
a/DT
small/JJ
concern/NN
,/,
saddled/VBN
with/IN
a/DT
half-completed/JJ
32-story/JJ
apartment/NN
building/NN
and/CC
heavy/JJ
debts/NNS
./.
The/DT
company/NN
owes/VBZ
$/$
11/CD
million/CD
to/TO
the/DT
Shui/NNP
On/NNP
Group/NNP
,/,
the/DT
project/NN
's/POS
Hong/NNP
Kong/NNP
contractor/NN
,/,
and/CC
a/DT
significant/JJ
,/,
though/IN
unspecified/JJ
,/,
amount/NN
in/IN
legal/JJ
fees/NNS
to/TO
Coudert/NNP
Brothers/NNPS
,/,
a/DT
U.S./NNP
law/NN
firm/NN
,/,
the/DT
sources/NNS
say/VBP
./.
The/DT
project/NN
,/,
known/VBN
as/IN
Lotus/NNP
Mansion/NNP
,/,
has/VBZ
been/VBN
mired/VBN
in/IN
controversy/NN
./.
When/WRB
the/DT
loan/NN
agreement/NN
was/VBD
announced/VBN
,/,
it/PRP
was/VBD
hailed/VBN
as/IN
one/CD
of/IN
the/DT
first/JJ
Western-style/JJ
financing/NN
transactions/NNS
ever/RB
used/VBN
in/IN
China/NNP
./.
Unlike/IN
most/JJS
loans/NNS
to/TO
China/NNP
,/,
there/EX
was/VBD
no/DT
Chinese/JJ
guarantor/NN
./.
Instead/RB
,/,
the/DT
banks/NNS
secured/VBD
a/DT
promise/NN
from/IN
state-owned/JJ
Bank/NNP
of/IN
Communications/NNPS
that/IN
it/PRP
would/MD
lend/VB
Asia/NNP
Development/NNP
the/DT
entire/JJ
$/$
55/CD
million/CD
at/IN
maturity/NN
to/TO
finance/VB
repayment/NN
of/IN
the/DT
original/JJ
borrowing/NN
./.
The/DT
loan/NN
was/VBD
to/TO
have/VB
matured/VBN
in/IN
just/RB
two/CD
to/TO
three/CD
years/NNS
,/,
as/RB
soon/RB
as/IN
construction/NN
was/VBD
completed/VBN
./.
But/CC
in/IN
a/DT
letter/NN
sent/VBN
in/IN
August/NNP
to/TO
Asia/NNP
Development/NNP
,/,
Schroders/NNP
said/VBD
the/DT
loan/NN
was/VBD
terminated/VBN
because/IN
the/DT
developer/NN
had/VBD
failed/VBN
to/TO
deliver/VB
adequate/JJ
financial/JJ
data/NNS
and/CC
pay/VB
certain/JJ
fees/NNS
to/TO
the/DT
loan-management/NN
committee/NN
on/IN
time/NN
,/,
according/VBG
to/TO
officials/NNS
close/RB
to/TO
the/DT
project/NN
./.
Creditors/NNS
involved/JJ
in/IN
the/DT
project/NN
contend/VBP
,/,
however/RB
,/,
that/IN
the/DT
termination/NN
actually/RB
had/VBD
nothing/NN
to/TO
do/VB
with/IN
these/DT
technical/JJ
violations/NNS
./.
Instead/RB
,/,
the/DT
creditors/NNS
say/VBP
,/,
the/DT
loan/NN
fell/VBN
victim/NN
to/TO
nervousness/NN
about/IN
China/NNP
's/POS
political/JJ
turmoil/NN
,/,
as/RB
well/RB
as/IN
to/TO
concern/VB
about/IN
the/DT
loan/NN
's/POS
security/NN
./.
The/DT
bank/NN
syndicate/NN
is/VBZ
made/VBN
up/IN
mostly/RB
of/IN
European/JJ
banks/NNS
,/,
but/CC
it/PRP
includes/VBZ
China/NNP
's/POS
state-owned/JJ
Citic/NNP
Industrial/NNP
Bank/NNP
./.
The/DT
11/CD
banks/NNS
in/IN
the/DT
syndicate/NN
sustained/VBD
no/DT
monetary/JJ
losses/NNS
because/IN
none/NN
of/IN
the/DT
credit/NN
facility/NN
had/VBD
been/VBN
drawn/VBN
down/RB
./.
K/NNP
mart/NN
Corp./NNP
agreed/VBD
to/TO
acquire/VB
Pace/NNP
Membership/NNP
Warehouse/NNP
Inc./NNP
for/IN
$/$
23/CD
a/DT
share/NN
,/,
or/CC
$/$
322/CD
million/CD
,/,
in/IN
a/DT
move/NN
to/TO
expand/VB
its/PRP$
presence/NN
in/IN
the/DT
rapidly/RB
growing/VBG
warehouse-club/NN
business/NN
./.
The/DT
proposed/VBN
merger/NN
comes/VBZ
as/IN
K/NNP
mart/NN
's/POS
profit/NN
is/VBZ
declining/VBG
and/CC
sales/NNS
at/IN
its/PRP$
core/NN
discount/NN
stores/NNS
are/VBP
rising/VBG
more/RBR
slowly/RB
than/IN
at/IN
such/JJ
competitors/NNS
as/IN
Wal-Mart/NNP
Stores/NNPS
Inc/NNP
./.
K/NNP
mart/NN
,/,
based/VBN
in/IN
Troy/NNP
,/,
Mich./NNP
,/,
recently/RB
said/VBD
net/JJ
income/NN
would/MD
fall/VB
for/IN
the/DT
third/JJ
consecutive/JJ
quarter/NN
,/,
after/IN
a/DT
16/CD
%/NN
drop/NN
in/IN
the/DT
first/JJ
half/NN
of/IN
its/PRP$
current/JJ
fiscal/JJ
year/NN
./.
``/``
The/DT
membership/NN
warehouse-club/NN
concept/NN
has/VBZ
great/JJ
potential/JJ
,/,
''/''
the/DT
company/NN
's/POS
chairman/NN
,/,
Joseph/NNP
E./NNP
Antonini/NNP
,/,
said/VBD
in/IN
a/DT
statement/NN
./.
Warehouse/NN
clubs/NNS
typically/RB
carry/VBP
general/JJ
merchandise/NN
and/CC
food/NN
products/NNS
,/,
which/WDT
they/PRP
sell/VBP
for/IN
close/RB
to/TO
wholesale/JJ
prices/NNS
in/IN
no-frills/JJ
stores/NNS
./.
Shoppers/NNS
,/,
many/DT
of/IN
whom/WP
operate/VBP
small/JJ
businesses/NNS
,/,
pay/VBP
annual/JJ
membership/NN
fees/NNS
,/,
which/WDT
provide/VBP
an/DT
income/NN
base/NN
for/IN
the/DT
stores/NNS
./.
K/NNP
mart/NN
tested/VBD
the/DT
warehouse-club/NN
sector/NN
last/JJ
year/NN
with/IN
its/PRP$
acquisition/NN
of/IN
a/DT
51/CD
%/NN
interest/NN
in/IN
Makro/NNP
Inc/NNP
./.
But/CC
the/DT
Makro/NNP
chain/NN
,/,
which/WDT
operates/VBZ
as/IN
a/DT
joint/JJ
venture/NN
between/IN
K/NNP
mart/NN
and/CC
SHV/NNP
Holdings/NNPS
N.V./NNP
of/IN
the/DT
Netherlands/NNP
,/,
has/VBZ
only/RB
six/CD
stores/NNS
and/CC
annual/JJ
sales/NNS
that/IN
one/CD
analyst/NN
estimated/VBN
at/IN
about/IN
$/$
300/CD
million/CD
./.
Six-year-old/JJ
Pace/NNP
,/,
based/VBN
in/IN
Aurora/NNP
,/,
Colo./NNP
,/,
operates/VBZ
41/CD
warehouse-club/NN
stores/NNS
./.
The/DT
company/NN
had/VBD
losses/NNS
for/IN
several/JJ
years/NNS
before/IN
turning/VBG
profitable/JJ
in/IN
fiscal/JJ
1988/CD
./.
In/IN
the/DT
year/NN
ended/VBN
Jan./NNP
31/CD
,/,
Pace/NNP
rang/VBD
up/RP
profit/NN
of/IN
$/$
9.4/CD
million/CD
,/,
or/CC
72/CD
cents/NNS
a/DT
share/NN
,/,
after/IN
a/DT
tax-loss/NN
carry-forward/NN
,/,
on/IN
sales/NNS
of/IN
$/$
1.3/CD
billion/CD
,/,
and/CC
analysts/NNS
expect/VBP
its/PRP$
results/NNS
to/TO
continue/VB
to/TO
improve/VB
./.
``/``
The/DT
company/NN
turned/VBD
the/DT
corner/NN
fairly/RB
recently/RB
in/IN
profitability/NN
,/,
''/''
said/VBD
Margo/NNP
McGlade/NNP
of/IN
PaineWebber/NNP
Inc./NNP
,/,
who/WP
had/VBD
been/VBN
forecasting/VBG
a/DT
46/CD
%/NN
jump/NN
in/IN
Pace/NNP
's/POS
net/JJ
income/NN
from/IN
operations/NNS
this/DT
year/NN
and/CC
another/DT
42/CD
%/NN
increase/NN
next/JJ
year/NN
./.
``/``
Warehouse/NN
productivity/NN
is/VBZ
really/RB
beginning/VBG
to/TO
take/VB
off/RB
./.
''/''
But/CC
some/DT
analysts/NNS
contend/VBP
K/NNP
mart/NN
has/VBZ
agreed/VBN
to/TO
pay/VB
too/RB
much/JJ
for/IN
Pace/NNP
./.
``/``
Even/RB
if/IN
you/PRP
look/VBP
at/IN
it/PRP
as/IN
a/DT
turnaround/NN
situation/NN
,/,
it/PRP
's/VBZ
expensive/JJ
,/,
''/''
said/VBD
Wayne/NNP
Hood/NNP
of/IN
Prudential-Bache/NNP
Securities/NNPS
Inc/NNP
./.
``/``
In/IN
my/PRP$
opinion/NN
,/,
you/PRP
would/MD
only/RB
pay/VB
that/DT
kind/NN
of/IN
price/NN
if/IN
you/PRP
were/VBD
getting/VBG
a/DT
premier/JJ
player/NN
in/IN
the/DT
industry/NN
./.
''/''
Ms./NNP
McGlade/NNP
of/IN
PaineWebber/NNP
raised/VBD
a/DT
more/RBR
fundamental/JJ
question/NN
about/IN
the/DT
deal/NN
./.
``/``
If/IN
K/NNP
mart/NN
ca/MD
n't/RB
get/VB
its/PRP$
act/NN
together/RB
in/IN
discounting/NN
,/,
why/WRB
is/VBZ
it/PRP
spending/VBG
time/NN
worrying/VBG
about/IN
other/JJ
growing/VBG
markets/NNS
?/.
''/''
She/PRP
said/VBD
,/,
``/``
I/PRP
would/MD
say/VB
K/NNP
mart/NN
's/POS
number/NN
one/CD
job/NN
is/VBZ
to/TO
address/VB
its/PRP$
market-share/NN
loss/NN
discount/NN
stores/NNS
which/WDT
longer-term/JJR
will/MD
lead/VB
to/TO
improved/JJ
profit/NN
margins/NNS
./.
At/IN
that/DT
point/NN
,/,
perhaps/RB
diversification/NN
would/MD
be/VB
appropriate/JJ
./.
''/''
But/CC
K/NNP
mart/NN
's/POS
Mr./NNP
Antonini/NNP
is/VBZ
intent/JJ
on/IN
pushing/VBG
the/DT
company/NN
into/IN
new/JJ
retail/JJ
businesses/NNS
./.
For/IN
instance/NN
,/,
K/NNP
mart/NN
is/VBZ
opening/VBG
big/JJ
food/NN
and/CC
general/JJ
merchandise/NN
stores/NNS
,/,
called/VBN
hypermarkets/NNS
,/,
and/CC
warehouse-type/NN
stores/NNS
specializing/VBG
in/IN
office/NN
products/NNS
and/CC
sporting/NN
goods/NNS
./.
It/PRP
also/RB
operates/VBZ
Waldenbooks/NNP
,/,
Pay/NNP
Less/NNP
Drug/NN
Stores/NNS
and/CC
Builders/NNPS
Square/NNP
home/NN
improvement/NN
stores/NNS
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
K/NNP
mart/NN
closed/VBD
yesterday/NN
at/IN
$/$
36/CD
a/DT
share/NN
,/,
up/RB
12.5/CD
cents/NNS
./.
Pace/NNP
rose/VBD
$/$
2.625/CD
to/TO
close/VB
at/IN
$/$
22.125/CD
a/DT
share/NN
in/IN
national/JJ
over-the-counter/JJ
trading/NN
./.
A/DT
K/NNP
mart/NN
spokesman/NN
said/VBD
the/DT
acquisition/NN
would/MD
be/VB
financed/VBN
with/IN
short-term/JJ
borrowings/NNS
./.
Under/IN
terms/NNS
of/IN
the/DT
agreement/NN
,/,
a/DT
K/NN
mart/NN
subsidiary/NN
will/MD
soon/RB
make/VB
a/DT
tender/NN
offer/NN
for/IN
Pace/NNP
shares/NNS
./.
Among/IN
the/DT
conditions/NNS
of/IN
the/DT
offer/NN
is/VBZ
that/IN
Pace/NNP
shareholders/NNS
tender/VBP
a/DT
majority/NN
of/IN
the/DT
company/NN
's/POS
shares/NNS
outstanding/JJ
./.
The/DT
companies/NNS
said/VBD
Pace/NNP
would/MD
ill/RB
continue/VB
to/TO
operate/VB
under/IN
its/PRP$
present/JJ
management/NN
./.
G./NNP
William/NNP
Ryan/NNP
,/,
president/NN
of/IN
Post-Newsweek/NNP
Stations/NNPS
,/,
was/VBD
named/VBN
chief/JJ
executive/NN
officer/NN
of/IN
the/DT
unit/NN
of/IN
this/DT
media/NNS
company/NN
,/,
effective/JJ
Jan./NNP
1/CD
./.
He/PRP
will/MD
succeed/VB
Joel/NNP
Chaseman/NNP
,/,
who/WP
will/MD
remain/VB
a/DT
vice/NN
president/NN
of/IN
the/DT
company/NN
and/CC
continue/VB
to/TO
represent/VB
Post-Newsweek/NNP
stations/NNS
in/IN
several/JJ
industry/NN
organizations/NNS
,/,
the/DT
company/NN
said/VBD
./.
literally/RB
./.
Traders/NNS
nervously/RB
watching/VBG
their/PRP$
Quotron/NNP
electronic-data/NN|NNS
machines/NNS
yesterday/NN
morning/NN
were/VBD
stunned/VBN
to/TO
see/VB
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
plummet/VB
99/CD
points/NNS
in/IN
seconds/NNS
./.
A/DT
minute/NN
later/RB
it/PRP
soared/VBD
128/CD
points/NNS
,/,
then/RB
zoomed/VBN
back/RB
down/RB
113/CD
points/NNS
,/,
69/CD
below/IN
Friday/NNP
's/POS
close/NN
./.
``/``
It/PRP
was/VBD
crazy/JJ
,/,
''/''
said/VBD
Neil/NNP
Weisman/NNP
,/,
general/JJ
partner/NN
of/IN
Chilmark/NNP
Capital/NNP
Corp/NNP
./.
``/``
It/PRP
was/VBD
like/IN
flying/VBG
without/IN
a/DT
pilot/NN
in/IN
the/DT
front/NN
of/IN
the/DT
plane/NN
./.
''/''
But/CC
those/DT
who/WP
said/VBD
``/``
This/DT
ca/MD
n't/RB
be/VB
happening/VBG
''/''
were/VBD
right/JJ
./.
The/DT
Quotrons/NNPS
were/VBD
wrong/JJ
./.
Quotron/NNP
Systems/NNPS
Inc./NNP
,/,
a/DT
Citicorp/NNP
unit/NN
,/,
blamed/VBD
the/DT
30-minute/JJ
foul-up/NN
on/IN
``/``
a/DT
timing/NN
problem/NN
in/IN
our/PRP$
software/NN
''/''
caused/VBN
by/IN
the/DT
enormous/JJ
early/JJ
volume/NN
--/:
about/IN
145/CD
million/CD
shares/NNS
in/IN
the/DT
first/JJ
hour/NN
of/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
trading/NN
./.
The/DT
prices/NNS
of/IN
the/DT
individual/JJ
stocks/NNS
that/WDT
make/VBP
up/RP
the/DT
average/NN
were/VBD
correct/JJ
,/,
Quotron/NNP
said/VBD
,/,
but/CC
the/DT
average/NN
was/VBD
wrong/JJ
./.
Meanwhile/RB
,/,
there/EX
was/VBD
an/DT
awful/JJ
lot/NN
of/IN
confusion/NN
./.
At/IN
about/IN
10:40/CD
a.m./RB
on/IN
the/DT
over-the-counter/JJ
trading/NN
desk/NN
at/IN
a/DT
major/JJ
brokerage/NN
firm/NN
,/,
a/DT
veteran/JJ
trader/NN
who/WP
buys/VBZ
and/CC
sells/VBZ
some/DT
of/IN
the/DT
most/RBS
active/JJ
stocks/NNS
looked/VBD
at/IN
a/DT
senior/JJ
official/NN
and/CC
asked/VBD
,/,
``/``
What/WP
's/VBZ
going/VBG
on/RP
?/.
Is/VBZ
the/DT
market/NN
up/RB
or/CC
down/RB
?/.
''/''
At/IN
the/DT
time/NN
,/,
Quotron/NNP
was/VBD
reporting/VBG
that/IN
the/DT
industrial/JJ
average/NN
was/VBD
down/RB
70/CD
points/NNS
./.
In/IN
fact/NN
,/,
it/PRP
was/VBD
up/RB
24/CD
./.
Holly/NNP
Stark/NNP
,/,
a/DT
vice/NN
president/NN
who/WP
heads/VBZ
the/DT
trading/NN
desk/NN
at/IN
Dillon/NNP
Read/NNP
Capital/NNP
Corp./NNP
,/,
said/VBD
that/IN
once/IN
she/PRP
figured/VBD
out/IN
the/DT
Quotron/NNP
numbers/NNS
were/VBD
wrong/JJ
,/,
she/PRP
called/VBD
brokers/NNS
to/TO
tell/VB
them/PRP
./.
``/``
It/PRP
's/VBZ
been/VBN
kind/NN
of/IN
annoying/JJ
,/,
to/TO
say/VB
the/DT
least/JJS
,/,
''/''
she/PRP
said/VBD
./.
To/TO
confuse/VB
matters/NNS
further/RBR
,/,
when/WRB
UAL/NNP
Corp./NNP
stock/NN
finally/RB
opened/VBN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
at/IN
11:08/CD
a.m./RB
,/,
the/DT
price/NN
was/VBD
listed/VBN
at/IN
$/$
324.75/CD
a/DT
share/NN
,/,
up/RB
about/IN
$/$
45/CD
from/IN
Friday/NNP
;/:
in/IN
fact/NN
,/,
its/PRP$
true/JJ
price/NN
was/VBD
$/$
224.75/CD
,/,
down/RB
$/$
55/CD
./.
That/DT
was/VBD
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
's/POS
blooper/NN
./.
A/DT
spokesman/NN
cited/VBD
a/DT
``/``
technical/JJ
error/NN
''/''
and/CC
declined/VBD
to/TO
elaborate/VB
./.
And/CC
there/EX
were/VBD
other/JJ
blunders/NNS
./.
When/WRB
the/DT
market/NN
opened/VBN
at/IN
9:30/CD
a.m./RB
EST/NNP
,/,
a/DT
reporter/NN
for/IN
the/DT
Reuters/NNP
newswire/NN
miscalculated/VBD
the/DT
industrial/JJ
average/NN
's/POS
drop/NN
as/IN
a/DT
4/CD
%/NN
decline/NN
when/WRB
it/PRP
really/RB
was/VBD
down/RB
0.7/CD
%/NN
./.
``/``
It/PRP
was/VBD
a/DT
case/NN
of/IN
human/JJ
error/NN
,/,
which/WDT
we/PRP
found/VBD
almost/RB
immediately/RB
and/CC
corrected/VBD
,/,
''/''
a/DT
spokesman/NN
for/IN
Reuter/NNP
in/IN
New/NNP
York/NNP
said/VBD
./.
Meanwhile/RB
,/,
some/DT
currency/NN
traders/NNS
at/IN
West/JJ
German/JJ
banks/NNS
in/IN
Frankfurt/NNP
said/VBD
they/PRP
sold/VBD
dollars/NNS
on/IN
the/DT
news/NN
and/CC
had/VBD
to/TO
buy/VB
them/PRP
back/RB
later/RB
at/IN
higher/JJR
prices/NNS
./.
But/CC
it/PRP
was/VBD
the/DT
Quotron/NNP
problems/NNS
that/WDT
had/VBD
lingering/VBG
effects/NNS
./.
Dillon/NNP
Read/NNP
's/POS
Ms./NNP
Stark/NNP
said/VBD
in/IN
early/JJ
afternoon/NN
that/IN
she/PRP
was/VBD
still/RB
viewing/VBG
prices/NNS
and/CC
other/JJ
data/NNS
as/IN
subject/NN
to/TO
verification/NN
,/,
and/CC
she/PRP
said/VBD
portfolio/NN
managers/NNS
continued/VBD
to/TO
question/VB
the/DT
numbers/NNS
they/PRP
saw/VBD
on/IN
the/DT
screen/NN
./.
It/PRP
was/VBD
the/DT
second/JJ
time/NN
in/IN
less/JJR
than/IN
a/DT
week/NN
that/DT
Quotron/NNP
has/VBZ
had/VBN
problems/NNS
calculating/VBG
the/DT
industrial/JJ
average/NN
./.
At/IN
the/DT
start/NN
of/IN
trading/NN
last/JJ
Wednesday/NNP
,/,
the/DT
average/NN
appeared/VBD
to/TO
plunge/VB
more/JJR
than/IN
200/CD
points/NNS
./.
Actually/RB
,/,
it/PRP
was/VBD
down/RB
only/RB
a/DT
few/JJ
points/NNS
at/IN
the/DT
time/NN
./.
Quotron/NNP
said/VBD
that/DT
snafu/NN
,/,
which/WDT
lasted/VBD
nine/CD
minutes/NNS
,/,
resulted/VBN
from/IN
a/DT
failure/NN
to/TO
adjust/VB
for/IN
a/DT
4-for-1/JJ
stock/NN
split/NN
at/IN
Philip/NNP
Morris/NNP
Cos/NNPS
./.
A/DT
Quotron/NNP
spokeswoman/NN
said/VBD
recent/JJ
software/NN
changes/NNS
may/MD
have/VB
contributed/VBN
to/TO
yesterday/NN
's/POS
problems/NNS
./.
She/PRP
said/VBD
Quotron/NNP
switched/VBD
to/TO
a/DT
backup/NN
system/NN
until/IN
the/DT
problems/NNS
were/VBD
corrected/VBN
./.
``/``
Today/NN
of/IN
all/DT
days/NNS
,/,
''/''
she/PRP
lamented/VBD
./.
``/``
The/DT
eyes/NNS
of/IN
the/DT
world/NN
were/VBD
watching/VBG
us/PRP
./.
''/''
Steven/NNP
F./NNP
Kaplan/NNP
was/VBD
named/VBN
a/DT
senior/JJ
vice/NN
president/NN
of/IN
this/DT
graphics/NNS
equipment/NN
company/NN
./.
He/PRP
retains/VBZ
his/PRP$
current/JJ
positions/NNS
as/IN
chief/JJ
strategic/JJ
officer/NN
of/IN
AM/VBP
International/NNP
and/CC
president/NN
of/IN
AM/NNP
Ventures/NNPS
./.
Houston/NNP
attorney/NN
Dale/NNP
Friend/NNP
,/,
representing/VBG
a/DT
plaintiff/NN
in/IN
a/DT
damage/NN
suit/NN
,/,
says/VBZ
he/PRP
has/VBZ
negotiated/VBN
a/DT
settlement/NN
that/WDT
will/MD
strike/VB
a/DT
blow/NN
for/IN
his/PRP$
client/NN
./.
Literally/RB
./.
It/PRP
turns/VBZ
out/IN
Mr./NNP
Friend/NNP
's/POS
client/NN
,/,
Machelle/NNP
Parks/NNP
of/IN
Cincinnati/NNP
,/,
did/VBD
n't/RB
like/IN
the/DT
way/NN
defense/NN
attorney/NN
Tom/NNP
Alexander/NNP
acted/VBD
during/IN
the/DT
legal/JJ
proceedings/NNS
./.
So/RB
she/PRP
has/VBZ
agreed/VBN
to/TO
forgo/VB
monetary/JJ
damages/NNS
against/IN
Mr./NNP
Alexander/NNP
's/POS
client/NN
in/IN
return/NN
for/IN
the/DT
right/NN
to/TO
punch/VB
the/DT
attorney/NN
./.
Ms./NNP
Parks/NNP
's/POS
mother/NN
also/RB
gets/VBZ
to/TO
cuff/VB
Mr./NNP
Alexander/NNP
./.
So/RB
does/VBZ
Mr./NNP
Friend/NNP
and/CC
his/PRP$
law/NN
partner/NN
,/,
Nick/NNP
Nichols/NNP
./.
The/DT
bizarre/JJ
arrangement/NN
grows/VBZ
out/IN
of/IN
Mr./NNP
Alexander/NNP
's/POS
representation/NN
of/IN
Derr/NNP
Construction/NNP
Co./NNP
,/,
one/CD
of/IN
several/JJ
defendants/NNS
in/IN
a/DT
wrongful/JJ
death/NN
lawsuit/NN
brought/VBN
by/IN
Ms./NNP
Parks/NNP
,/,
the/DT
widow/NN
of/IN
a/DT
construction/NN
worker/NN
killed/VBN
in/IN
January/NNP
1987/CD
while/IN
working/VBG
on/IN
a/DT
new/JJ
Houston/NNP
convention/NN
center/NN
./.
Last/JJ
month/NN
,/,
Mr./NNP
Friend/NNP
says/VBZ
,/,
Mr./NNP
Alexander/NNP
's/POS
associate/NN
agreed/VBD
that/IN
Derr/NNP
would/MD
pay/VB
$/$
50,000/CD
as/IN
part/NN
of/IN
an/DT
overall/JJ
settlement/NN
./.
But/CC
Mr./NNP
Alexander/NNP
scuttled/VBD
the/DT
deal/NN
at/IN
the/DT
last/JJ
minute/NN
,/,
angering/VBG
the/DT
plaintiff/NN
's/POS
side/NN
./.
``/``
I/PRP
never/RB
agreed/VBD
to/TO
it/PRP
,/,
''/''
Mr./NNP
Alexander/NNP
says/VBZ
,/,
adding/VBG
that/IN
``/``
it/PRP
's/VBZ
not/RB
necessary/JJ
to/TO
pay/VB
these/DT
nuisance/JJ
settlements/NNS
./.
''/''
When/WRB
Ms./NNP
Parks/NNP
and/CC
her/PRP$
mother/NN
heard/VBD
about/IN
what/WP
had/VBD
happened/VBN
,/,
Mr./NNP
Friend/NNP
says/VBZ
,/,
they/PRP
volunteered/VBD
that/IN
they/PRP
would/MD
like/VB
to/TO
give/VB
Mr./NNP
Alexander/NNP
a/DT
good/JJ
walloping/NN
./.
Mr./NNP
Friend/NNP
says/VBZ
he/PRP
passed/VBD
that/IN
along/IN
to/TO
his/PRP$
adversary/NN
,/,
and/CC
soon/RB
they/PRP
were/VBD
talking/VBG
about/IN
the/DT
ground/NN
rules/NNS
under/IN
which/WDT
Derr/NNP
could/MD
keep/VB
its/PRP$
money/NN
and/CC
the/DT
plaintiffs/NNS
could/MD
take/VB
a/DT
shot/NN
at/IN
Mr./NNP
Alexander/NNP
./.
Although/IN
time/NN
and/CC
place/NN
have/VBP
yet/RB
to/TO
be/VB
determined/VBN
,/,
some/DT
details/NNS
are/VBP
in/IN
place/NN
./.
Mr./NNP
Friend/NNP
says/VBZ
he/PRP
agreed/VBD
to/TO
strike/VB
Mr./NNP
Alexander/NNP
above/IN
the/DT
belt/NN
./.
Ms./NNP
Parks/NNP
and/CC
her/PRP$
mother/NN
indicated/VBD
they/PRP
want/VBP
to/TO
``/``
catch/VB
him/PRP
unawares/RB
from/IN
behind/NN
,/,
''/''
he/PRP
says/VBZ
./.
Mr./NNP
Alexander/NNP
,/,
for/IN
his/PRP$
part/NN
,/,
insisted/VBD
that/IN
the/DT
punchers/NNS
ca/MD
n't/RB
assign/VB
their/PRP$
pummeling/NN
rights/NNS
to/TO
anyone/NN
else/RB
,/,
ca/MD
n't/RB
use/VB
a/DT
blunt/JJ
instrument/NN
and/CC
ca/MD
n't/RB
take/VB
a/DT
running/JJ
start/NN
./.
Mr./NNP
Alexander/NNP
says/VBZ
he/PRP
regards/VBZ
the/DT
agreement/NN
,/,
which/WDT
has/VBZ
n't/RB
been/VBN
submitted/VBN
to/TO
a/DT
judge/NN
,/,
as/IN
something/NN
of/IN
a/DT
joke/NN
./.
However/RB
,/,
he/PRP
acknowledges/VBZ
they/PRP
``/``
have/VBP
the/DT
option/NN
of/IN
taking/VBG
a/DT
swat/NN
at/IN
me/PRP
if/IN
they/PRP
really/RB
want/VBP
to/TO
./.
''/''
Mr./NNP
Friend/NNP
says/VBZ
his/PRP$
side/NN
is/VBZ
``/``
dead/RB
serious/JJ
./.
''/''
Although/IN
they/PRP
do/VBP
n't/RB
contemplate/VB
delivering/VBG
any/DT
disabling/VBG
blows/NNS
,/,
he/PRP
says/VBZ
that/IN
Mr./NNP
Alexander/NNP
will/MD
be/VB
asked/VBN
to/TO
sign/VB
a/DT
release/NN
from/IN
liability/NN
,/,
just/RB
in/IN
case/NN
./.
After/IN
two/CD
years/NNS
of/IN
drought/NN
,/,
it/PRP
rained/VBD
money/NN
in/IN
the/DT
stock-index/NN
futures/NNS
markets/NNS
yesterday/NN
./.
As/IN
financial/JJ
markets/NNS
rebounded/VBD
,/,
trading/NN
volume/NN
in/IN
the/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
's/POS
huge/JJ
Standard/NNP
&/CC
Poor/NNP
's/POS
500/CD
stock-index/NN
futures/NNS
pit/NN
soared/VBD
,/,
reaching/VBG
near-record/JJ
levels/NNS
for/IN
the/DT
first/JJ
time/NN
since/IN
October/NNP
1987/CD
./.
The/DT
sudden/JJ
influx/NN
of/IN
liquidity/NN
enabled/VBD
several/JJ
traders/NNS
to/TO
reap/VB
six-figure/JJ
windfalls/NNS
in/IN
a/DT
matter/NN
of/IN
minutes/NNS
as/IN
prices/NNS
soared/VBD
,/,
traders/NNS
said/VBD
./.
``/``
Guys/NNS
were/VBD
minting/VBG
money/NN
in/IN
there/RB
today/NN
,/,
''/''
said/VBD
John/NNP
Legittino/NNP
,/,
a/DT
futures/NNS
broker/NN
for/IN
Elders/NNP
Futures/NNPS
Inc./NNP
in/IN
Chicago/NNP
./.
The/DT
S&P/NNP
500/CD
futures/NNS
contract/NN
,/,
which/WDT
moves/VBZ
in/IN
fractions/NNS
of/IN
an/DT
index/NN
point/NN
under/IN
normal/JJ
conditions/NNS
,/,
jumped/VBD
two/CD
to/TO
three/CD
points/NNS
in/IN
seconds/NNS
early/JJ
yesterday/NN
after/IN
an/DT
initial/JJ
downturn/NN
,/,
then/RB
moved/VBD
strongly/RB
higher/RBR
the/DT
rest/NN
of/IN
the/DT
day/NN
./.
Each/DT
index/NN
point/NN
represents/VBZ
a/DT
$/$
500/CD
profit/NN
for/IN
each/DT
S&P/NNP
500/CD
contract/NN
held/VBD
./.
For/IN
the/DT
first/JJ
time/NN
since/IN
the/DT
1987/CD
crash/NN
,/,
traders/NNS
said/VBD
that/IN
they/PRP
were/VBD
able/JJ
to/TO
trade/VB
several/JJ
hundred/CD
S&P/NNP
500/CD
contracts/NNS
at/IN
a/DT
time/NN
in/IN
a/DT
highly/RB
liquid/JJ
market/NN
./.
Many/JJ
institutions/NNS
and/CC
individual/NN
investors/NNS
have/VBP
shied/VBN
away/RB
from/IN
stock-index/NN
futures/NNS
,/,
blaming/VBG
them/PRP
for/IN
speeding/VBG
the/DT
stock/NN
market/NN
crash/NN
on/IN
Black/NNP
Monday/NNP
two/CD
years/NNS
ago/RB
./.
Since/IN
the/DT
crash/NN
,/,
many/JJ
futures/NNS
traders/NNS
have/VBP
n't/RB
assumed/VBN
large/JJ
positions/NNS
for/IN
fear/NN
that/IN
the/DT
S&P/NN
500/CD
market/NN
,/,
with/IN
much/RB
of/IN
its/PRP$
customer/NN
order/NN
flow/NN
missing/VBG
,/,
would/MD
dry/VB
up/RB
if/IN
prices/NNS
turned/VBD
against/IN
them/PRP
./.
More/JJR
than/IN
400/CD
traders/NNS
jammed/VBD
the/DT
S&P/NN
500/CD
futures/NNS
pit/VB
to/TO
await/VB
the/DT
opening/NN
bell/NN
./.
Traders/NNS
were/VBD
shouting/VBG
bids/NNS
and/CC
offers/VBZ
a/DT
full/JJ
five/CD
minutes/NNS
before/IN
the/DT
start/NN
of/IN
trading/NN
at/IN
8:30/CD
am/RB
The/DT
contract/NN
fell/VBD
five/CD
points/NNS
at/IN
the/DT
open/NN
to/TO
323.85/CD
,/,
the/DT
maximum/JJ
opening/NN
move/NN
allowed/VBN
under/IN
safeguards/NNS
adopted/VBN
by/IN
the/DT
Merc/NNP
to/TO
stem/VB
a/DT
market/NN
slide/NN
./.
But/CC
several/JJ
traders/NNS
quickly/RB
stepped/VBD
up/RB
and/CC
bid/VB
for/IN
contracts/NNS
,/,
driving/VBG
prices/NNS
sharply/RB
higher/RBR
./.
The/DT
market/NN
hovered/VBD
near/IN
Friday/NNP
's/POS
closing/NN
price/NN
of/IN
328.85/CD
for/IN
about/IN
a/DT
half/JJ
hour/NN
,/,
moving/VBG
several/JJ
index/NN
points/NNS
higher/RBR
or/CC
lower/RBR
in/IN
seconds/NNS
,/,
then/RB
broke/VBD
higher/RBR
and/CC
did/VBD
n't/RB
look/VB
back/RB
./.
The/DT
S&P/NNP
500/CD
contract/NN
that/WDT
expires/VBZ
in/IN
December/NNP
closed/VBD
up/RB
a/DT
record/NN
15.65/CD
points/NNS
on/IN
volume/NN
of/IN
nearly/RB
80,000/CD
contracts/NNS
./.
``/``
Traders/NNS
five/CD
feet/NNS
from/IN
each/DT
other/JJ
were/VBD
making/VBG
bids/NNS
and/CC
offers/VBZ
that/DT
were/VBD
a/DT
full/JJ
point/NN
apart/RB
,/,
''/''
said/VBD
one/CD
S&P/NN
500/CD
broker/NN
./.
``/``
You/PRP
could/MD
buy/VB
at/IN
the/DT
bid/NN
and/CC
sell/VB
at/IN
the/DT
offer/NN
and/CC
make/VB
a/DT
fortune/NN
,/,
''/''
he/PRP
marveled/VBD
./.
Several/JJ
of/IN
Wall/NNP
Street/NNP
's/POS
largest/JJS
securities/NNS
firms/NNS
,/,
including/VBG
Salomon/NNP
Brothers/NNPS
Inc./NNP
and/CC
PaineWebber/NNP
Inc./NNP
,/,
were/VBD
also/RB
large/JJ
buyers/NNS
,/,
traders/NNS
said/VBD
./.
Salomon/NNP
Brothers/NNPS
was/VBD
among/IN
the/DT
largest/JJS
sellers/NNS
of/IN
stock-index/NN
futures/NNS
last/JJ
week/NN
,/,
traders/NNS
said/VBD
./.
Brokerage/NN
firms/NNS
as/IN
a/DT
rule/NN
do/VBP
n't/RB
comment/VB
on/IN
their/PRP$
market/NN
activity/NN
./.
Unlike/IN
the/DT
week/NN
following/VBG
Black/NNP
Monday/NNP
two/CD
years/NNS
ago/RB
,/,
individual/JJ
traders/NNS
in/IN
the/DT
S&P/NN
500/CD
pit/NN
were/VBD
also/RB
being/VBG
uncharacteristically/RB
circumspect/JJ
about/IN
their/PRP$
one-day/JJ
profits/NNS
./.
``/``
With/IN
the/DT
FBI/NNP
around/IN
here/RB
,/,
bragging/NN
rights/NNS
are/VBP
a/DT
thing/NN
of/IN
the/DT
past/NN
,/,
''/''
said/VBD
one/CD
trader/NN
,/,
referring/VBG
to/TO
the/DT
federal/JJ
investigation/NN
of/IN
futures/NNS
trading/NN
that/IN
so/RB
far/RB
has/VBZ
resulted/VBN
in/IN
46/CD
indictments/NNS
lodged/VBN
against/IN
individuals/NNS
on/IN
the/DT
Merc/NNP
and/CC
the/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
./.
The/DT
market/NN
for/IN
$/$
200/CD
billion/CD
of/IN
high-yield/JJ
junk/NN
bonds/NNS
regained/VBD
some/DT
of/IN
its/PRP$
footing/NN
as/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
rebounded/VBD
from/IN
Friday/NNP
's/POS
plunge/NN
./.
But/CC
the/DT
junk/NN
recovery/NN
,/,
led/VBN
by/IN
the/DT
bellwether/NN
RJR/NNP
Holdings/NNPS
bonds/NNS
,/,
was/VBD
precarious/JJ
./.
No/DT
trading/VBG
existed/VBD
for/IN
the/DT
vast/JJ
majority/NN
of/IN
junk/NN
bonds/NNS
,/,
securities/NNS
industry/NN
officials/NNS
said/VBD
./.
On/IN
Friday/NNP
,/,
trading/NN
in/IN
practically/RB
every/DT
issue/NN
ground/VBD
to/TO
a/DT
halt/NN
as/IN
potential/JJ
buyers/NNS
fled/VBD
and/CC
brokerage/NN
firms/NNS
were/VBD
unwilling/JJ
to/TO
provide/VB
bid/NN
and/CC
offer/NN
prices/NNS
for/IN
most/JJS
issues/NNS
./.
``/``
Nothing/NN
traded/VBN
on/IN
Friday/NNP
,/,
and/CC
people/NNS
were/VBD
n't/RB
really/RB
sure/JJ
where/WRB
the/DT
market/NN
should/MD
have/VB
opened/VBN
''/''
yesterday/NN
,/,
said/VBD
Raymond/NNP
Minella/NNP
,/,
co-head/NN
of/IN
merchant/NN
banking/NN
at/IN
Merrill/NNP
Lynch/NNP
&/CC
Co/NNP
./.
``/``
But/CC
we/PRP
had/VBD
a/DT
fairly/RB
active/JJ
day/NN
yesterday/NN
./.
''/''
At/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
,/,
the/DT
leading/VBG
underwriter/NN
of/IN
junk/NN
bonds/NNS
,/,
``/``
I/PRP
was/VBD
prepared/JJ
to/TO
be/VB
in/IN
a/DT
very/RB
bad/JJ
mood/NN
tonight/NN
,/,
''/''
said/VBD
David/NNP
Feinman/NNP
,/,
a/DT
junk/NN
bond/NN
trader/NN
./.
``/``
Now/RB
,/,
I/PRP
feel/VBP
maybe/RB
there/EX
's/VBZ
a/DT
little/JJ
bit/NN
of/IN
euphoria/NN
./.
''/''
But/CC
before/IN
the/DT
stock/NN
market/NN
rebounded/VBD
from/IN
a/DT
sharp/JJ
early/JJ
sell-off/NN
yesterday/NN
,/,
he/PRP
said/VBD
,/,
``/``
You/PRP
could/MD
n't/RB
buy/VB
{/(
junk/NN
bonds/NNS
you/PRP
could/MD
n't/RB
give/VB
them/PRP
away/RB
./.
''/''
Yesterday/NN
's/POS
rally/NN
was/VBD
led/VBN
by/IN
RJR/NNP
Holdings/NNPS
13/CD
3\/4/CD
%/NN
bonds/NNS
,/,
which/WDT
initially/RB
tumbled/VBD
three/CD
points/NNS
,/,
or/CC
$/$
30/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
,/,
to/TO
96/CD
1\/4/CD
before/IN
rebounding/VBG
to/TO
99/CD
3\/4/CD
./.
Bonds/NNS
issued/VBN
by/IN
Kroger/NNP
,/,
Duracell/NNP
,/,
Safeway/NNP
and/CC
American/NNP
Standard/NNP
also/RB
showed/VBD
big/JJ
gains/NNS
,/,
recovering/VBG
almost/RB
all/DT
their/PRP$
losses/NNS
from/IN
Friday/NNP
and/CC
early/JJ
yesterday/NN
./.
But/CC
traders/NNS
said/VBD
the/DT
junk/NN
bond/NN
market/NN
increasingly/RB
is/VBZ
separating/VBG
into/IN
a/DT
top-tier/JJ
group/NN
,/,
in/IN
which/WDT
trades/NNS
can/MD
be/VB
executed/VBN
easily/RB
,/,
and/CC
a/DT
larger/JJR
group/NN
of/IN
lower-quality/JJR
bonds/NNS
in/IN
which/WDT
liquidity/NN
--/:
or/CC
the/DT
ability/NN
to/TO
trade/VB
without/IN
too/RB
much/JJ
difficulty/NN
--/:
has/VBZ
steadily/RB
deteriorated/VBN
this/DT
year/NN
./.
``/``
Liquidity/NN
has/VBZ
n't/RB
returned/VBD
to/TO
the/DT
vast/JJ
middle/JJ
ground/NN
of/IN
the/DT
market/NN
,/,
''/''
said/VBD
Mr./NNP
Minella/NNP
of/IN
Merrill/NNP
./.
``/``
The/DT
deadbeats/NNS
are/VBP
still/RB
deadbeats/NNS
,/,
''/''
said/VBD
Mr./NNP
Feinman/NNP
of/IN
Drexel/NNP
./.
Analysts/NNS
are/VBP
concerned/JJ
that/IN
much/JJ
of/IN
the/DT
high-yield/JJ
market/NN
will/MD
remain/VB
treacherous/JJ
for/IN
investors/NNS
./.
Paul/NNP
Asquith/NNP
,/,
associate/NN
professor/NN
at/IN
the/DT
Massachusetts/NNP
Institute/NNP
of/IN
Technology/NNP
's/POS
Sloan/NNP
School/NNP
of/IN
Management/NNP
,/,
citing/VBG
a/DT
pattern/NN
of/IN
junk-bond/NN
default/NN
rates/NNS
that/WDT
are/VBP
low/JJ
in/IN
the/DT
early/JJ
years/NNS
after/IN
issuance/NN
and/CC
rise/VBP
later/RB
,/,
says/VBZ
,/,
``/``
We/PRP
're/VBP
now/RB
in/IN
a/DT
period/NN
where/WRB
we/PRP
're/VBP
starting/VBG
to/TO
see/VB
defaults/NNS
from/IN
the/DT
big/JJ
issue/NN
years/NNS
of/IN
1984/CD
to/TO
1986/CD
./.
''/''
Mark/NNP
Bachmann/NNP
,/,
a/DT
senior/JJ
vice/NN
president/NN
at/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NN
,/,
confirms/VBZ
that/IN
there/EX
is/VBZ
``/``
increasing/VBG
concern/NN
about/IN
the/DT
future/JJ
liquidity/NN
of/IN
the/DT
junk/NN
bond/NN
market/NN
./.
''/''
``/``
Junk/NN
bonds/NNS
are/VBP
a/DT
highly/RB
stratified/JJ
market/NN
,/,
''/''
said/VBD
Lewis/NNP
Glucksman/NNP
,/,
vice/NN
chairman/NN
of/IN
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
&/CC
Co/NNP
./.
``/``
There/EX
's/VBZ
a/DT
whole/JJ
bunch/NN
of/IN
stuff/NN
that/WDT
's/VBZ
money/NN
good/JJ
and/CC
a/DT
whole/JJ
bunch/NN
of/IN
stuff/NN
that/WDT
's/VBZ
not/RB
so/RB
good/JJ
./.
''/''
Analysts/NNS
at/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
say/VBP
junk/NN
bond/NN
offerings/NNS
by/IN
``/``
tightly/RB
stretched/JJ
''/''
issuers/NNS
seem/VBP
to/TO
be/VB
growing/VBG
./.
Almost/RB
$/$
8/CD
billion/CD
of/IN
junk/NN
bonds/NNS
that/WDT
are/VBP
considered/VBN
untradeable/JJ
include/VBP
issues/NNS
from/IN
SCI/NNP
TV/NNP
,/,
Gillette/NNP
Holdings/NNPS
Gillette/NNP
Co./NNP
Interco/NNP
,/,
Seaman/NNP
Furniture/NNP
,/,
Allied/NNP
Stores/NNPS
,/,
Federated/NNP
Department/NNP
Stores/NNPS
,/,
National/NNP
Gypsum/NNP
,/,
M.D.C./NNP
Holdings/NNPS
,/,
Micropolis/NNP
,/,
Leaseway/NNP
Transportation/NNP
and/CC
Price/NNP
Communications/NNPS
./.
``/``
You/PRP
could/MD
still/RB
have/VB
some/DT
very/RB
bad/JJ
times/NNS
ahead/RB
,/,
''/''
said/VBD
Mr./NNP
Bachmann/NNP
./.
``/``
It/PRP
's/VBZ
possible/JJ
to/TO
have/VB
a/DT
10/CD
%/NN
default/NN
rate/NN
in/IN
one/CD
year/NN
,/,
because/IN
we/PRP
're/VBP
already/RB
seeing/VBG
big/JJ
problems/NNS
in/IN
the/DT
midst/NN
of/IN
a/DT
pretty/RB
strong/JJ
economy/NN
./.
I/PRP
'm/VBP
certainly/RB
not/RB
comfortable/JJ
saying/VBG
we/PRP
've/VBP
seen/VBN
the/DT
bottom/NN
./.
''/''
But/CC
yesterday/NN
's/POS
rally/NN
among/IN
``/``
good/JJ
''/''
junk/NN
was/VBD
a/DT
badly/RB
needed/JJ
tonic/NN
for/IN
the/DT
market/NN
./.
Many/JJ
issues/NNS
``/``
bounced/VBD
off/IN
the/DT
floor/NN
,/,
''/''
Mr./NNP
Minella/NNP
said/VBD
,/,
and/CC
benchmark/JJ
junk/NN
issues/NNS
``/``
recovered/VBD
all/DT
of/IN
their/PRP$
losses/NNS
''/''
from/IN
Friday/NNP
and/CC
early/JJ
yesterday/NN
./.
In/IN
contrast/NN
,/,
he/PRP
says/VBZ
,/,
``/``
The/DT
stock/NN
market/NN
gained/VBD
back/RB
only/RB
about/IN
half/NN
what/WP
it/PRP
lost/VBN
Friday/NNP
,/,
and/CC
the/DT
government/NN
bond/NN
market/NN
lost/VBN
about/IN
half/NN
what/WP
it/PRP
gained/VBN
Friday/NNP
./.
''/''
Traders/NNS
said/VBD
yesterday/NN
's/POS
rally/NN
was/VBD
fueled/VBN
by/IN
insurance/NN
companies/NNS
looking/VBG
for/IN
bargains/NNS
after/IN
a/DT
drastic/JJ
slide/NN
in/IN
prices/NNS
the/DT
past/JJ
month/NN
./.
In/IN
addition/NN
,/,
mutual/JJ
funds/NNS
did/VBD
n't/RB
appear/VB
to/TO
be/VB
major/JJ
sellers/NNS
of/IN
high-yield/NN
securities/NNS
as/IN
was/VBD
expected/VBN
./.
``/``
Sometimes/RB
a/DT
shakeout/NN
is/VBZ
healthy/JJ
,/,
''/''
said/VBD
Drexel/NNP
's/POS
Mr./NNP
Feinman/NNP
./.
``/``
People/NNS
will/MD
learn/VB
to/TO
be/VB
more/RBR
circumspect/JJ
./.
If/IN
they/PRP
do/VBP
good/JJ
credit/NN
analysis/NN
,/,
they/PRP
will/MD
avoid/VB
the/DT
hand/NN
grenades/NNS
./.
I/PRP
think/VBP
the/DT
market/NN
is/VBZ
in/IN
good/JJ
shape/NN
./.
''/''
Should/MD
you/PRP
really/RB
own/VB
stocks/NNS
?/.
That/DT
's/VBZ
a/DT
question/NN
a/DT
lot/NN
of/IN
people/NNS
are/VBP
asking/VBG
,/,
following/VBG
the/DT
stock/NN
market/NN
's/POS
stunning/JJ
display/NN
of/IN
volatility/NN
./.
Whipsawed/JJ
financially/RB
and/CC
emotionally/RB
by/IN
Friday/NNP
's/POS
heartstopping/JJ
190-point/JJ
drop/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
and/CC
yesterday/NN
's/POS
88-point/JJ
rebound/NN
,/,
they/PRP
're/VBP
wondering/VBG
if/IN
an/DT
individual/NN
has/VBZ
any/DT
business/NN
being/VBG
in/IN
the/DT
market/NN
./.
The/DT
answer/NN
,/,
say/VBP
academic/JJ
researchers/NNS
,/,
money/NN
managers/NNS
and/CC
investment/NN
specialists/NNS
,/,
is/VBZ
yes/UH
--/:
as/RB
long/RB
as/IN
you/PRP
approach/VBP
the/DT
stock/NN
market/NN
as/IN
an/DT
investor/NN
./.
But/CC
,/,
they/PRP
say/VBP
,/,
people/NNS
should/MD
n't/RB
try/VB
to/TO
be/VB
traders/NNS
,/,
who/WP
buy/VBP
and/CC
sell/VBP
in/IN
an/DT
effort/NN
to/TO
ride/VB
the/DT
latest/JJS
economic/JJ
trend/NN
or/CC
catch/VB
the/DT
next/JJ
hot/JJ
stock/NN
./.
The/DT
case/NN
for/IN
owning/VBG
stocks/NNS
over/IN
the/DT
long-term/NN
is/VBZ
compelling/JJ
./.
``/``
If/IN
you/PRP
look/VBP
at/IN
75/CD
years/NNS
worth/JJ
of/IN
investment/NN
history/NN
--/:
including/VBG
the/DT
Great/JJ
Depression/NNP
and/CC
every/DT
bear/NN
market/NN
since/IN
--/:
stocks/NNS
have/VBP
outperformed/VBN
almost/RB
everything/NN
an/DT
individual/NN
could/MD
have/VB
owned/VBN
by/IN
a/DT
long/JJ
shot/NN
,/,
''/''
says/VBZ
Barry/NNP
Berlin/NNP
,/,
vice/NN
president/NN
at/IN
First/NNP
Wachovia/NNP
Capital/NNP
Management/NNP
./.
A/DT
dollar/NN
invested/VBN
in/IN
the/DT
stock/NN
market/NN
in/IN
1926/CD
would/MD
have/VB
grown/VBN
to/TO
$/$
473.29/CD
by/IN
the/DT
end/NN
of/IN
last/JJ
June/NNP
,/,
according/VBG
to/TO
Laurence/NNP
Siegel/NNP
,/,
managing/NN
director/NN
at/IN
Ibbotson/NNP
Associates/NNPS
Inc/NNP
./.
But/CC
a/DT
dollar/NN
invested/VBN
in/IN
long-term/JJ
bonds/NNS
in/IN
1926/CD
would/MD
have/VB
grown/VBN
to/TO
only/RB
$/$
16.56/CD
,/,
and/CC
a/DT
dollar/NN
put/VBN
in/IN
Treasury/NNP
bills/NNS
would/MD
equal/VB
a/DT
meager/JJ
$/$
9.29/CD
./.
The/DT
longer/JJR
the/DT
time/NN
period/NN
,/,
the/DT
less/JJR
risk/NN
there/RB
is/VBZ
of/IN
losing/VBG
money/NN
in/IN
the/DT
stock/NN
market/NN
./.
Over/IN
time/NN
,/,
the/DT
odds/NNS
increasingly/RB
favor/VBP
the/DT
investor/NN
with/IN
a/DT
diversified/JJ
portfolio/NN
./.
For/IN
instance/NN
,/,
Ken/NNP
Gregory/NNP
,/,
a/DT
San/NNP
Francisco/NNP
money/NN
manager/NN
,/,
calculates/VBZ
that/IN
if/IN
an/DT
investor/NN
holds/VBZ
a/DT
basket/NN
of/IN
stocks/NNS
that/WDT
tracks/VBZ
the/DT
Standard/NNP
&/CC
Poor/NNP
's/POS
500-stock/JJ
index/NN
,/,
the/DT
chance/NN
of/IN
losing/VBG
money/NN
is/VBZ
3/CD
%/NN
to/TO
4/CD
%/NN
over/IN
a/DT
10-year/JJ
period/NN
,/,
compared/VBN
with/IN
15/CD
%/NN
over/IN
three/CD
years/NNS
and/CC
30/CD
%/NN
over/IN
one/CD
year/NN
./.
``/``
If/IN
you/PRP
do/VBP
n't/RB
need/VB
the/DT
money/NN
for/IN
10/CD
years/NNS
,/,
there/EX
's/VBZ
a/DT
clear-cut/JJ
case/NN
for/IN
sticking/VBG
to/TO
a/DT
steady/JJ
core/NN
of/IN
stocks/NNS
,/,
''/''
Mr./NNP
Gregory/NNP
says/VBZ
./.
Stock-market/NN
investments/NNS
also/RB
help/VBP
balance/VB
the/DT
other/JJ
assets/NNS
an/DT
individual/NN
owns/VBZ
,/,
says/VBZ
John/NNP
Blankenship/NNP
Jr./NNP
,/,
president/NN
of/IN
the/DT
Institute/NNP
of/IN
Certified/NNP
Financial/NNP
Planners/NNPS
./.
Stocks/NNS
have/VBP
a/DT
place/NN
in/IN
an/DT
investors/NNS
'/POS
portfolio/NN
along/IN
with/IN
real/JJ
estate/NN
,/,
bonds/NNS
,/,
international/JJ
securities/NNS
and/CC
cash/NN
,/,
he/PRP
says/VBZ
./.
There/EX
are/VBP
some/DT
important/JJ
caveats/NNS
:/:
Before/IN
investing/VBG
in/IN
stocks/NNS
,/,
individuals/NNS
should/MD
have/VB
at/IN
least/JJS
three/CD
to/TO
six/CD
months/NNS
of/IN
living/NN
expenses/NNS
set/VBN
aside/RB
in/IN
the/DT
bank/NN
,/,
most/JJS
investment/NN
advisers/NNS
say/VBP
./.
Individuals/NNS
also/RB
should/MD
focus/VB
on/IN
building/VBG
equity/NN
in/IN
a/DT
home/NN
,/,
which/WDT
provides/VBZ
some/DT
protection/NN
against/IN
inflation/NN
,/,
as/RB
well/RB
as/IN
a/DT
nest-egg/NN
that/WDT
can/MD
be/VB
cashed/VBN
in/IN
late/RB
in/IN
life/NN
to/TO
help/VB
cover/VB
the/DT
cost/NN
of/IN
retirement/NN
living/NN
./.
People/NNS
also/RB
should/MD
n't/RB
invest/VB
money/NN
in/IN
stocks/NNS
that/IN
they/PRP
'll/MD
need/VB
in/IN
the/DT
near/JJ
future/NN
--/:
for/IN
example/NN
,/,
for/IN
college/NN
tuition/NN
payments/NNS
or/CC
retirement/NN
expenses/NNS
./.
``/``
You/PRP
may/MD
have/VB
to/TO
sell/VB
your/PRP$
stocks/NNS
at/IN
a/DT
time/NN
when/WRB
the/DT
market/NN
takes/VBZ
a/DT
plunge/NN
,/,
''/''
says/VBZ
Mr./NNP
Blankenship/NNP
,/,
a/DT
Del/NNP
Mar/NNP
,/,
Calif./NNP
financial/JJ
planner/NN
./.
But/CC
once/RB
the/DT
basics/NNS
are/VBP
covered/VBN
,/,
``/``
then/RB
I/PRP
would/MD
start/VB
to/TO
invest/VB
,/,
even/RB
if/IN
it/PRP
's/VBZ
as/RB
little/JJ
as/IN
$/$
1,000/CD
,/,
''/''
says/VBZ
Michael/NNP
Lipper/NNP
,/,
president/NN
of/IN
Lipper/NNP
Analytical/NNP
Services/NNPS
Inc/NNP
./.
He/PRP
says/VBZ
individuals/NNS
should/MD
consider/VB
not/RB
just/RB
stocks/NNS
,/,
but/CC
other/JJ
long-term/JJ
investments/NNS
,/,
such/JJ
as/IN
high-quality/JJ
bonds/NNS
./.
Despite/IN
the/DT
strong/JJ
case/NN
for/IN
stocks/NNS
,/,
however/RB
,/,
most/JJS
pros/NNS
warn/VBP
that/IN
individuals/NNS
should/MD
n't/RB
try/VB
to/TO
profit/VB
from/IN
short-term/JJ
developments/NNS
./.
``/``
It/PRP
's/VBZ
very/RB
difficult/JJ
to/TO
do/VB
,/,
''/''
says/VBZ
Donald/NNP
Holt/NNP
,/,
a/DT
market/NN
strategist/NN
for/IN
Wedbush/NNP
Morgan/NNP
Securities/NNPS
,/,
a/DT
Los/NNP
Angeles/NNP
brokerage/NN
firm/NN
./.
``/``
Our/PRP$
markets/NNS
move/VBP
so/RB
fast/RB
and/CC
they/PRP
are/VBP
so/RB
volatile/JJ
,/,
there/EX
's/VBZ
no/DT
way/NN
the/DT
average/JJ
investor/NN
can/MD
compete/VB
with/IN
the/DT
pros/NNS
./.
''/''
Individual/JJ
investors/NNS
face/VBP
high/JJ
transaction/NN
costs/NNS
of/IN
moving/VBG
in/IN
and/CC
out/IN
of/IN
the/DT
market/NN
./.
The/DT
cost/NN
of/IN
executing/VBG
stock/NN
orders/NNS
varies/VBZ
from/IN
brokerage/NN
to/TO
brokerage/NN
and/CC
with/IN
the/DT
size/NN
of/IN
the/DT
order/NN
,/,
but/CC
2/CD
%/NN
of/IN
the/DT
order/NN
's/POS
value/NN
is/VBZ
an/DT
average/NN
,/,
says/VBZ
Stephen/NNP
Boesel/NNP
,/,
manager/NN
of/IN
T./NNP
Rowe/NNP
Price/NNP
's/POS
Growth/NNP
and/CC
Income/NNP
mutual/JJ
fund/NN
./.
And/CC
assuming/VBG
their/PRP$
first/JJ
investment/NN
is/VBZ
successful/JJ
,/,
investors/NNS
will/MD
have/VB
to/TO
pay/VB
taxes/NNS
on/IN
their/PRP$
gains/NNS
./.
That/DT
can/MD
reduce/VB
returns/NNS
by/IN
a/DT
third/NN
or/CC
more/JJR
,/,
once/IN
local/JJ
taxes/NNS
are/VBP
included/VBN
,/,
Mr./NNP
Lipper/NNP
says/VBZ
./.
After/IN
that/DT
,/,
individual/JJ
traders/NNS
face/VBP
the/DT
risk/NN
that/IN
the/DT
new/JJ
investment/NN
they/PRP
choose/VBP
wo/MD
n't/RB
perform/VB
well/RB
--/:
so/RB
their/PRP$
trading/NN
costs/NNS
could/MD
be/VB
sustained/VBN
for/IN
nothing/NN
./.
``/``
It/PRP
's/VBZ
very/RB
tough/JJ
for/IN
most/JJS
individuals/NNS
to/TO
out-trade/VB
the/DT
mutual/JJ
funds/NNS
or/CC
the/DT
market/NN
,/,
''/''
says/VBZ
Mr./NNP
Lipper/NNP
./.
``/``
You/PRP
should/MD
really/RB
think/VB
twice/RB
if/IN
you/PRP
think/VB
you/PRP
can/MD
out-smart/VB
the/DT
system/NN
./.
''/''
Then/RB
,/,
too/RB
,/,
many/JJ
individual/JJ
investors/NNS
lack/VBP
the/DT
sturdy/JJ
emotional/JJ
makeup/NN
professionals/NNS
say/VBP
is/VBZ
needed/VBN
to/TO
plunge/VB
in/IN
and/CC
out/IN
of/IN
the/DT
market/NN
./.
So/RB
what/WP
's/VBZ
the/DT
best/JJS
way/NN
to/TO
buy/VB
stocks/NNS
?/.
``/``
Unless/IN
an/DT
individual/NN
has/VBZ
a/DT
minimum/NN
of/IN
between/IN
$/$
50,000/CD
and/CC
$/$
100,000/CD
to/TO
invest/VB
in/IN
stocks/NNS
,/,
he/PRP
's/VBZ
still/RB
better/JJR
off/RP
in/IN
mutual/JJ
funds/NNS
than/IN
in/IN
individual/JJ
stocks/NNS
,/,
in/IN
terms/NNS
of/IN
getting/VBG
enough/JJ
attention/NN
from/IN
a/DT
competent/JJ
broker/NN
,/,
''/''
says/VBZ
Mr./NNP
Lipper/NNP
./.
Still/RB
,/,
he/PRP
adds/VBZ
,/,
``/``
I/PRP
could/MD
see/VB
owning/VBG
both/DT
,/,
given/VBN
that/IN
individuals/NNS
often/RB
have/VBP
an/DT
advantage/NN
over/IN
big/JJ
investors/NNS
in/IN
spotting/VBG
special/JJ
situations/NNS
based/VBN
on/IN
their/PRP$
own/JJ
insights/NNS
,/,
''/''
he/PRP
adds/VBZ
./.
George/NNP
Douglas/NNP
,/,
first/JJ
vice/NN
president/NN
at/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
,/,
says/VBZ
that/IN
individuals/NNS
have/VBP
a/DT
particular/JJ
edge/NN
now/RB
in/IN
``/``
small/JJ
to/TO
medium-size/JJ
niche/NN
companies/NNS
with/IN
exciting/JJ
earnings/NNS
prospects/NNS
''/''
--/:
a/DT
traditional/JJ
stomping/NN
ground/NN
for/IN
small/JJ
investors/NNS
./.
This/DT
growth/NN
sector/NN
,/,
which/WDT
usually/RB
carries/VBZ
a/DT
price\/earnings/NNS
multiple/NN
about/IN
twice/RB
that/IN
of/IN
the/DT
Standard/NNP
&/CC
Poor/NNP
's/POS
500/CD
,/,
happens/VBZ
to/TO
include/VB
some/DT
of/IN
the/DT
market/NN
's/POS
most/RBS
attractive/JJ
bargains/NNS
right/RB
now/RB
./.
``/``
It/PRP
's/VBZ
now/RB
selling/VBG
at/IN
a/DT
multiple/JJ
about/IN
even/RB
with/IN
the/DT
market/NN
,/,
''/''
says/VBZ
Mr./NNP
Douglas/NNP
./.
Moreover/RB
,/,
Mr./NNP
Douglas/NNP
sees/VBZ
a/DT
revival/NN
of/IN
institutional/JJ
interest/NN
in/IN
smaller/JJR
growth/JJ
stocks/NNS
that/WDT
could/MD
boost/VB
the/DT
performance/NN
of/IN
these/DT
stocks/NNS
in/IN
the/DT
medium/JJ
term/NN
./.
Many/JJ
big/JJ
Wall/NNP
Street/NNP
brokerage/NN
firms/NNS
who/WP
eliminated/VBD
their/PRP$
research/NN
effort/NN
in/IN
stocks/NNS
of/IN
emerging/VBG
growth/NN
companies/NNS
a/DT
few/JJ
years/NNS
ago/RB
are/VBP
now/RB
resuming/VBG
coverage/NN
of/IN
this/DT
area/NN
,/,
he/PRP
notes/VBZ
./.
``/``
We/PRP
're/VBP
seeing/VBG
a/DT
real/JJ
turnaround/NN
in/IN
interest/NN
in/IN
small/JJ
growth/NN
stocks/NNS
,/,
''/''
he/PRP
says/VBZ
./.
The/DT
pros/NNS
strenuously/RB
advise/VBP
individuals/NNS
to/TO
stay/VB
away/RB
from/IN
the/DT
latest/JJS
investment/NN
fad/NN
./.
They/PRP
say/VBP
that/DT
's/VBZ
especially/RB
important/JJ
this/DT
late/JJ
in/IN
the/DT
growth/NN
phase/NN
of/IN
the/DT
economic/JJ
cycle/NN
,/,
when/WRB
there/EX
's/VBZ
no/DT
robust/JJ
bull/NN
market/NN
to/TO
bail/VB
investors/NNS
out/IN
of/IN
their/PRP$
mistakes/NNS
./.
Friday/NNP
's/POS
correction/NN
presents/VBZ
``/``
a/DT
pretty/RB
good/JJ
buying/NN
opportunity/NN
,/,
but/CC
let/VB
's/PRP
not/RB
speculate/VB
at/IN
this/DT
point/NN
in/IN
the/DT
business/NN
cycle/NN
,/,
''/''
says/VBZ
Carmine/NNP
Grigoli/NNP
,/,
chief/JJ
equity/NN
portfolio/NN
strategist/NN
at/IN
First/NNP
Boston/NNP
Corp/NNP
./.
``/``
Buy/VB
stocks/NNS
on/IN
weakness/NN
for/IN
their/PRP$
long-term/JJ
fundamentals/NNS
,/,
''/''
he/PRP
says/VBZ
./.
In/IN
the/DT
long/JJ
run/NN
,/,
investment/NN
advisers/NNS
say/VBP
,/,
most/JJS
investors/NNS
will/MD
be/VB
better/JJR
off/RP
using/VBG
the/DT
dollar-cost/NN
averaging/NN
method/NN
of/IN
buying/VBG
stocks/NNS
./.
In/IN
this/DT
method/NN
,/,
a/DT
person/NN
invests/VBZ
a/DT
regular/JJ
amount/NN
every/DT
month/NN
or/CC
quarter/NN
into/IN
the/DT
stock/NN
market/NN
whether/IN
the/DT
market/NN
is/VBZ
up/RB
or/CC
down/RB
./.
That/DT
cuts/VBZ
the/DT
risk/NN
,/,
Mr./NNP
Gregory/NNP
,/,
the/DT
San/NNP
Francisco/NNP
money/NN
manager/NN
,/,
points/VBZ
out/RB
./.
``/``
When/WRB
the/DT
market/NN
is/VBZ
low/JJ
,/,
you/PRP
are/VBP
buying/VBG
more/JJR
shares/NNS
,/,
and/CC
when/WRB
it/PRP
's/VBZ
high/JJ
,/,
you/PRP
're/VBP
buying/VBG
fewer/JJR
shares/NNS
,/,
''/''
he/PRP
says/VBZ
./.
Otherwise/RB
,/,
if/IN
you/PRP
put/VBP
all/DT
your/PRP$
money/NN
in/RP
at/IN
one/CD
time/NN
,/,
by/IN
sheer/JJ
bad/JJ
luck/NN
,/,
you/PRP
might/MD
pick/VB
a/DT
terrible/JJ
time/NN
,/,
and/CC
have/VB
to/TO
wait/VB
three/CD
years/NNS
to/TO
get/VB
even/RB
,/,
Mr./NNP
Gregory/NNP
says/VBZ
./.
A/DT
disciplined/JJ
program/NN
will/MD
work/VB
the/DT
best/RBS
,/,
Mr./NNP
Boesel/NNP
says/VBZ
./.
``/``
One/CD
of/IN
the/DT
hardest/JJS
things/NNS
to/TO
do/VB
is/VBZ
to/TO
buy/VB
stocks/NNS
when/WRB
the/DT
market/NN
is/VBZ
down/RP
,/,
''/''
he/PRP
says/VBZ
./.
``/``
But/CC
that/IN
's/VBZ
just/RB
the/DT
time/NN
when/WRB
you/PRP
should/MD
be/VB
buying/VBG
them/PRP
./.
''/''
Compound/JJ
annual/JJ
returns/NNS
,/,
including/VBG
price/NN
changes/NNS
and/CC
income/NN
from/IN
interest/NN
and/CC
dividends/NNS
\*/SYM
Actual/JJ
performance/NN
,/,
not/RB
annualized/VBN
Source/NN
:/:
Ibbotson/NNP
Associates/NNPS
Inc/NNP
./.
The/DT
following/JJ
issues/NNS
were/VBD
recently/RB
filed/VBN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
:/:
Gehl/NNP
Co./NNP
,/,
initial/JJ
public/JJ
offering/NN
of/IN
two/CD
million/CD
shares/NNS
of/IN
common/JJ
stock/NN
,/,
of/IN
which/WDT
1,450,635/CD
shares/NNS
are/VBP
being/VBG
offered/VBN
by/IN
the/DT
company/NN
and/CC
549,365/CD
shares/NNS
by/IN
holders/NNS
,/,
via/IN
Blunt/NNP
,/,
Ellis/NNP
&/CC
Loewi/NNP
Inc./NNP
and/CC
Robert/NNP
W./NNP
Baird/NNP
&/CC
Co/NNP
./.
Giant/NNP
Industries/NNPS
Inc./NNP
,/,
initial/JJ
public/JJ
offering/NN
of/IN
3,111,000/CD
common/JJ
shares/NNS
,/,
of/IN
which/WDT
2,425,000/CD
will/MD
be/VB
sold/VBN
by/IN
the/DT
company/NN
,/,
and/CC
the/DT
rest/NN
by/IN
holders/NNS
,/,
via/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
and/CC
Hanifen/NNP
,/,
Imhoff/NNP
Inc/NNP
./.
Inefficient-Market/NNP
Fund/NNP
Inc./NNP
,/,
initial/JJ
offering/NN
of/IN
five/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
&/CC
Co/NNP
./.
Jason/NNP
Overseas/NNP
Ltd./NNP
,/,
initial/JJ
offering/NN
of/IN
four/CD
million/CD
common/JJ
shares/NNS
,/,
of/IN
which/WDT
3.2/CD
million/CD
will/MD
be/VB
sold/VBN
in/IN
the/DT
U.S./NNP
,/,
and/CC
the/DT
balance/NN
outside/IN
the/DT
U.S./NNP
,/,
via/IN
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
&/CC
Co./NNP
and/CC
Mabon/NNP
,/,
Nugent/NNP
&/CC
Co/NNP
./.
Donald/NNP
Trump/NNP
,/,
who/WP
faced/VBD
rising/VBG
doubt/NN
about/IN
his/PRP$
bid/NN
for/IN
American/NNP
Airlines/NNPS
parent/NN
AMR/NNP
Corp./NNP
even/RB
before/IN
a/DT
United/NNP
Airlines/NNPS
buy-out/NN
came/VBD
apart/RB
Friday/NNP
,/,
withdrew/VBD
his/PRP$
$/$
7.54/CD
billion/CD
offer/NN
./.
Separately/RB
,/,
bankers/NNS
representing/VBG
the/DT
group/NN
trying/VBG
to/TO
buy/VB
United/NNP
's/POS
parent/NN
UAL/NNP
Corp./NNP
met/VBD
with/IN
other/JJ
banks/NNS
about/IN
reviving/VBG
that/DT
purchase/NN
at/IN
a/DT
lower/JJR
price/NN
,/,
possibly/RB
around/IN
$/$
250/CD
a/DT
share/NN
,/,
or/CC
$/$
5.65/CD
billion/CD
./.
But/CC
a/DT
lower/JJR
bid/NN
could/MD
face/VB
rejection/NN
by/IN
the/DT
UAL/NNP
board/NN
./.
Mr./NNP
Trump/NNP
,/,
who/WP
vowed/VBD
Wednesday/NNP
to/TO
``/``
go/VB
forward/RB
''/''
with/IN
the/DT
bid/NN
,/,
said/VBD
he/PRP
was/VBD
dropping/VBG
it/PRP
``/``
in/IN
light/NN
of/IN
the/DT
recent/JJ
change/NN
in/IN
market/NN
conditions/NNS
./.
''/''
He/PRP
said/VBD
he/PRP
might/MD
now/RB
sell/VB
his/PRP$
AMR/NNP
stake/NN
,/,
buy/VB
more/JJR
shares/NNS
,/,
or/CC
make/VB
another/DT
offer/NN
at/IN
a/DT
lower/JJR
price/NN
./.
The/DT
Manhattan/NNP
real-estate/NN
developer/NN
acted/VBD
after/IN
the/DT
UAL/NNP
buyers/NNS
failed/VBD
to/TO
obtain/VB
financing/NN
for/IN
their/PRP$
earlier/JJR
$/$
300-a-share/JJ
bid/NN
,/,
which/WDT
sparked/VBD
a/DT
selling/NN
panic/NN
among/IN
that/DT
snowballed/VBD
into/IN
a/DT
190-point/JJ
drop/NN
Friday/NNP
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
./.
News/NN
about/IN
UAL/NNP
and/CC
AMR/NNP
,/,
whose/WP$
shares/NNS
never/RB
reopened/VBN
after/IN
trading/NN
was/VBD
halted/VBN
Friday/NNP
for/IN
the/DT
UAL/NNP
announcement/NN
,/,
sent/VBD
both/DT
stocks/NNS
nosediving/VBG
in/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
UAL/NNP
tumbled/VBD
$/$
56.875/CD
to/TO
$/$
222.875/CD
on/IN
volume/NN
of/IN
2.3/CD
million/CD
shares/NNS
,/,
and/CC
AMR/NNP
declined/VBN
by/IN
$/$
22.125/CD
to/TO
$/$
76.50/CD
as/IN
4.7/CD
million/CD
shares/NNS
changed/VBD
hands/NNS
./.
Together/RB
,/,
the/DT
two/CD
stocks/NNS
wreaked/VBD
havoc/NN
among/IN
takeover/NN
stock/NN
traders/NNS
,/,
and/CC
caused/VBD
a/DT
7.3/CD
%/NN
drop/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Transportation/NNP
Average/NNP
,/,
second/JJ
in/IN
size/NN
only/RB
to/TO
the/DT
stock-market/NN
crash/NN
of/IN
Oct./NNP
19/CD
,/,
1987/CD
./.
Some/DT
said/VBD
Friday/NNP
's/POS
market/NN
debacle/NN
had/VBD
given/VBN
Mr./NNP
Trump/NNP
an/DT
excuse/NN
to/TO
bail/VB
out/RB
of/IN
an/DT
offer/NN
that/WDT
showed/VBD
signs/NNS
of/IN
stalling/VBG
even/RB
before/IN
problems/NNS
emerged/VBD
with/IN
the/DT
UAL/NNP
deal/NN
./.
After/IN
reaching/VBG
an/DT
intraday/JJ
high/NN
of/IN
$/$
107.50/CD
the/DT
day/NN
Mr./NNP
Trump/NNP
disclosed/VBD
his/PRP$
bid/NN
Oct./NNP
5/CD
,/,
AMR/NNP
's/POS
stock/NN
had/VBD
retreated/VBN
as/RB
low/RB
as/IN
$/$
97.75/CD
last/JJ
week/NN
./.
Some/DT
takeover/NN
stock/NN
traders/NNS
had/VBD
been/VBN
betting/VBG
against/IN
Mr./NNP
Trump/NNP
because/IN
he/PRP
has/VBZ
a/DT
record/NN
of/IN
disclosing/VBG
stakes/NNS
in/IN
companies/NNS
that/WDT
are/VBP
potential/JJ
takeover/NN
targets/NNS
,/,
then/RB
selling/VBG
at/IN
a/DT
profit/NN
without/IN
making/VBG
a/DT
bid/NN
./.
``/``
He/PRP
still/RB
has/VBZ
n't/RB
proven/VBN
his/PRP$
mettle/NN
as/IN
a/DT
big-league/JJ
take-out/NN
artist/NN
,/,
''/''
said/VBD
airline/NN
analyst/NN
Kevin/NNP
Murphy/NNP
of/IN
Morgan/NNP
Stanley/NNP
&/CC
Co/NNP
./.
``/``
He/PRP
's/VBZ
done/VBN
this/DT
thing/NN
where/WRB
he/PRP
'll/MD
buy/VB
a/DT
little/JJ
bit/NN
of/IN
a/DT
company/NN
and/CC
then/RB
trade/VB
out/IN
of/IN
it/PRP
./.
He/PRP
's/VBZ
written/VBN
this/DT
book/NN
,/,
`/``
The/DT
Art/NN
of/IN
the/DT
Deal/NN
./.
'/''
Why/WRB
does/VBZ
n't/RB
he/PRP
just/RB
follow/VB
through/RB
on/IN
one/CD
of/IN
these/DT
things/NNS
?/.
''/''
Mr./NNP
Trump/NNP
withdrew/VBD
his/PRP$
bid/NN
before/IN
the/DT
AMR/NNP
board/NN
,/,
which/WDT
is/VBZ
due/JJ
to/TO
meet/VB
tomorrow/NN
,/,
ever/RB
formally/RB
considered/VBD
it/PRP
./.
AMR/NNP
had/VBD
weighed/VBN
a/DT
wide/JJ
range/NN
of/IN
possible/JJ
responses/NNS
,/,
from/IN
flat/JJ
rejection/NN
to/TO
recapitalizations/NNS
and/CC
leveraged/JJ
buy-outs/NNS
that/WDT
might/MD
have/VB
included/VBN
either/DT
employees/NNS
,/,
a/DT
friendlier/JJR
buyer/NN
such/JJ
as/IN
Texas/NNP
billionaire/NN
Robert/NNP
Bass/NNP
,/,
or/CC
both/DT
./.
AMR/NNP
had/VBD
also/RB
sought/VBN
to/TO
foil/VB
Mr./NNP
Trump/NNP
in/IN
Congress/NNP
by/IN
lobbying/VBG
for/IN
legislation/NN
that/WDT
would/MD
have/VB
bolstered/VBN
the/DT
authority/NN
of/IN
the/DT
Transportation/NNP
Department/NNP
to/TO
reject/VB
airline/NN
buy-outs/NNS
./.
Yesterday/NN
,/,
Mr./NNP
Trump/NNP
tried/VBD
to/TO
put/VB
the/DT
blame/NN
for/IN
the/DT
collapse/NN
of/IN
the/DT
UAL/NNP
deal/NN
on/IN
Congress/NNP
,/,
saying/VBG
it/PRP
was/VBD
rushing/VBG
through/IN
a/DT
bill/NN
to/TO
protect/VB
AMR/NNP
executives/NNS
./.
``/``
I/PRP
believe/VBP
that/IN
the/DT
perception/NN
that/DT
legislation/NN
in/IN
this/DT
area/NN
may/MD
be/VB
hastily/RB
approved/VBN
contributed/VBD
to/TO
the/DT
collapse/NN
of/IN
the/DT
UAL/NNP
transaction/NN
,/,
and/CC
the/DT
resulting/VBG
disruption/NN
in/IN
the/DT
financial/JJ
markets/NNS
experienced/VBN
this/DT
past/JJ
Friday/NNP
,/,
''/''
Mr./NNP
Trump/NNP
wrote/VBD
members/NNS
of/IN
Congress/NNP
./.
AMR/NNP
declined/VBD
to/TO
comment/VB
,/,
and/CC
Mr./NNP
Trump/NNP
did/VBD
n't/RB
respond/VB
to/TO
requests/NNS
for/IN
interviews/NNS
./.
Mr./NNP
Trump/NNP
never/RB
said/VBD
how/WRB
much/JJ
AMR/NNP
stock/NN
he/PRP
had/VBD
bought/VBN
,/,
only/RB
that/IN
his/PRP$
holdings/NNS
were/VBD
``/``
substantial/JJ
./.
''/''
However/RB
,/,
he/PRP
only/RB
received/VBD
federal/JJ
clearance/NN
to/TO
buy/VB
more/JJR
than/IN
$/$
15/CD
million/CD
of/IN
the/DT
stock/NN
on/IN
Sept./NNP
20/CD
,/,
when/WRB
the/DT
price/NN
rose/VBD
$/$
2/CD
a/DT
share/NN
to/TO
$/$
78.50/CD
./.
Between/IN
then/RB
and/CC
his/PRP$
bid/NN
on/IN
Oct./NNP
5/CD
,/,
the/DT
price/NN
fluctuated/VBD
between/IN
$/$
75.625/CD
and/CC
$/$
87.375/CD
./.
In/IN
an/DT
attempt/NN
to/TO
persuade/VB
investors/NNS
that/IN
his/PRP$
bid/NN
was/VBD
n't/RB
just/RB
``/``
a/DT
stock/NN
play/NN
,/,
''/''
Mr./NNP
Trump/NNP
promised/VBD
last/JJ
week/NN
to/TO
notify/VB
the/DT
market/NN
before/IN
selling/VBG
any/DT
shares/NNS
./.
AMR/NNP
was/VBD
trading/VBG
at/IN
around/IN
$/$
84/CD
yesterday/NN
before/IN
his/PRP$
withdrawal/NN
announcement/NN
,/,
then/RB
immediately/RB
fell/VBD
to/TO
about/IN
$/$
76/CD
./.
Assuming/VBG
that/IN
he/PRP
paid/VBD
a/DT
rough/JJ
average/JJ
price/NN
of/IN
$/$
80/CD
a/DT
share/NN
,/,
and/CC
assuming/VBG
he/PRP
did/VBD
n't/RB
sell/VB
before/IN
his/PRP$
announcement/NN
reached/VBD
the/DT
market/NN
,/,
Mr./NNP
Trump/NNP
could/MD
be/VB
sitting/VBG
with/IN
a/DT
modest/JJ
loss/NN
with/IN
the/DT
stock/NN
at/IN
$/$
76.50/CD
./.
Some/DT
analysts/NNS
said/VBD
AMR/NNP
Chairman/NN
Robert/NNP
Crandall/NNP
might/MD
seize/VB
the/DT
opportunity/NN
presented/VBN
by/IN
the/DT
stock/NN
price/NN
drop/NN
to/TO
protect/VB
the/DT
nation/NN
's/POS
largest/JJS
airline/NN
with/IN
a/DT
defensive/JJ
transaction/NN
,/,
such/JJ
as/IN
the/DT
sale/NN
of/IN
stock/NN
to/TO
a/DT
friendly/JJ
holder/NN
or/CC
company/NN
employees/NNS
./.
However/RB
,/,
other/JJ
knowledgeable/JJ
observers/NNS
said/VBD
they/PRP
believed/VBD
Mr./NNP
Crandall/NNP
and/CC
the/DT
AMR/NNP
board/NN
might/MD
well/RB
decide/VB
to/TO
tough/VB
it/PRP
out/RB
without/IN
taking/VBG
any/DT
extra/JJ
steps/NNS
./.
Some/DT
analysts/NNS
said/VBD
they/PRP
believed/VBD
Mr./NNP
Trump/NNP
,/,
whose/WP$
towering/JJ
ego/NN
had/VBD
been/VBN
viewed/VBN
by/IN
some/DT
as/IN
a/DT
reason/NN
to/TO
believe/VB
he/PRP
would/MD
n't/RB
back/VB
out/RB
,/,
might/MD
come/VB
back/RB
with/IN
a/DT
lower/JJR
bid/NN
./.
Ray/NNP
Neidl/NNP
of/IN
Dillon/NNP
Read/NNP
&/CC
Co./NNP
said/VBD
Mr./NNP
Trump/NNP
``/``
is/VBZ
stepping/VBG
back/RB
and/CC
waiting/VBG
for/IN
the/DT
dust/NN
to/TO
settle/VB
./.
I/PRP
'm/VBP
sure/JJ
he/PRP
still/RB
wants/VBZ
AMR/NNP
./.
''/''
But/CC
others/NNS
remained/VBD
skeptical/JJ
./.
``/``
I/PRP
was/VBD
never/RB
sure/JJ
Donald/NNP
Trump/NNP
really/RB
wanted/VBD
to/TO
take/VB
AMR/NNP
,/,
''/''
said/VBD
John/NNP
Mattis/NNP
,/,
a/DT
bond/NN
analyst/NN
with/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc/NNP
./.
``/``
What/WP
happened/VBD
with/IN
United/NNP
was/VBD
a/DT
gracious/JJ
way/NN
for/IN
him/PRP
to/TO
bow/VB
out/RB
./.
''/''
Mr./NNP
Trump/NNP
never/RB
obtained/VBD
financing/NN
for/IN
his/PRP$
bid/NN
./.
That/DT
skepticism/NN
would/MD
leave/VB
him/PRP
with/IN
an/DT
even/RB
greater/JJR
credibility/NN
problem/NN
should/MD
he/PRP
return/VB
that/WDT
would/MD
handicap/VB
him/PRP
in/IN
any/DT
effort/NN
to/TO
oust/VB
the/DT
board/NN
in/IN
a/DT
proxy/NN
fight/NN
./.
Meanwhile/RB
,/,
Citicorp/NNP
and/CC
Chase/NNP
Manhattan/NNP
Corp./NNP
,/,
the/DT
two/CD
lead/JJ
lenders/NNS
on/IN
the/DT
UAL/NNP
buy-out/NN
,/,
met/VBD
with/IN
other/JJ
banks/NNS
yesterday/NN
to/TO
determine/VB
if/IN
they/PRP
would/MD
be/VB
willing/JJ
to/TO
finance/VB
the/DT
buy-out/NN
at/IN
a/DT
lower/JJR
price/NN
./.
Officials/NNS
familiar/JJ
with/IN
the/DT
talks/NNS
said/VBD
Citicorp/NNP
had/VBD
discussed/VBN
lowering/VBG
the/DT
offer/NN
to/TO
$/$
250/CD
a/DT
share/NN
,/,
but/CC
said/VBD
that/DT
price/NN
was/VBD
a/DT
talking/NN
point/NN
and/CC
that/IN
no/DT
decision/NN
has/VBZ
been/VBN
made/VBN
./.
At/IN
$/$
250/CD
a/DT
share/NN
,/,
the/DT
group/NN
would/MD
have/VB
to/TO
borrow/VB
about/IN
$/$
6.1/CD
billion/CD
from/IN
banks/NNS
./.
The/DT
first/JJ
UAL/NNP
deal/NN
unraveled/VBN
after/IN
Citibank/NNP
and/CC
Chase/NNP
could/MD
n't/RB
raise/VB
$/$
7.2/CD
billion/CD
./.
Citibank/NNP
and/CC
Chase/NNP
had/VBD
agreed/VBN
to/TO
commit/VB
$/$
3/CD
billion/CD
,/,
and/CC
said/VBD
they/PRP
were/VBD
``/``
highly/RB
confident/JJ
''/''
of/IN
raising/VBG
another/DT
$/$
4.2/CD
billion/CD
./.
Together/RB
,/,
Citicorp/NNP
and/CC
Chase/NNP
received/VBD
$/$
8/CD
million/CD
in/IN
fees/NNS
to/TO
raise/VB
the/DT
rest/NN
of/IN
the/DT
financing/NN
./.
But/CC
other/JJ
banks/NNS
balked/VBD
at/IN
the/DT
low/JJ
interest/NN
rate/NN
and/CC
banking/NN
fees/NNS
the/DT
UAL/NNP
group/NN
was/VBD
willing/JJ
to/TO
pay/VB
them/PRP
./.
Officials/NNS
familiar/JJ
with/IN
the/DT
bank/NN
talks/NNS
said/VBD
the/DT
UAL/NNP
buy-out/NN
group/NN
--/:
UAL/NNP
pilots/NNS
,/,
management/NN
,/,
and/CC
British/NNP
Airways/NNPS
PLC/NNP
--/:
is/VBZ
now/RB
willing/JJ
to/TO
pay/VB
higher/JJR
bank/NN
fees/NNS
and/CC
interest/NN
,/,
but/CC
is/VBZ
n't/RB
likely/JJ
to/TO
boost/VB
its/PRP$
$/$
965/CD
million/CD
equity/NN
contribution/NN
./.
Nor/CC
is/VBZ
the/DT
group/NN
likely/JJ
to/TO
come/VB
forward/RB
with/IN
a/DT
revised/VBN
offer/NN
within/IN
the/DT
next/JJ
48/CD
hours/NNS
despite/IN
the/DT
hopes/NNS
of/IN
many/JJ
traders/NNS
./.
The/DT
group/NN
's/POS
advisers/NNS
want/VBP
to/TO
make/VB
certain/JJ
they/PRP
have/VBP
firm/JJ
bank/NN
commitments/NNS
the/DT
second/JJ
time/NN
around/RB
./.
Even/RB
if/IN
the/DT
buy-out/NN
group/NN
is/VBZ
able/JJ
to/TO
obtain/VB
financing/NN
,/,
the/DT
transaction/NN
still/RB
faces/VBZ
obstacles/NNS
./.
UAL/NNP
's/POS
board/NN
could/MD
reject/VB
the/DT
new/JJ
price/NN
as/RB
too/RB
low/JJ
,/,
especially/RB
since/IN
there/EX
are/VBP
n't/RB
any/DT
competing/VBG
bids/NNS
./.
Los/NNP
Angeles/NNP
investor/NN
Marvin/NNP
Davis/NNP
,/,
whose/WP$
$/$
275-a-share/JJ
offer/NN
was/VBD
rejected/VBN
by/IN
UAL/NNP
's/POS
board/NN
,/,
has/VBZ
n't/RB
shown/VBN
signs/NNS
of/IN
pursuing/VBG
a/DT
$/$
300-a-share/JJ
back-up/NN
bid/NN
he/PRP
made/VBD
last/JJ
month/NN
./.
In/IN
addition/NN
,/,
the/DT
coalition/NN
of/IN
labor/NN
and/CC
management/NN
,/,
longtime/JJ
enemies/NNS
who/WP
joined/VBD
forces/NNS
only/RB
under/IN
the/DT
threat/NN
of/IN
Mr./NNP
Davis/NNP
's/POS
bid/NN
,/,
could/MD
break/VB
apart/RB
now/RB
./.
The/DT
group/NN
's/POS
resilience/NN
gets/VBZ
its/PRP$
first/JJ
test/NN
today/NN
when/WRB
30/CD
top/JJ
pilot/NN
union/NN
leaders/NNS
convene/VBP
outside/IN
Chicago/NNP
in/IN
a/DT
previously/RB
scheduled/JJ
meeting/NN
./.
Union/NNP
Chairman/NNP
F.C/NNP
./.
Rick/NNP
Dubinsky/NNP
faces/VBZ
the/DT
tough/JJ
task/NN
of/IN
explaining/VBG
why/WRB
banks/NNS
refused/VBD
to/TO
finance/VB
a/DT
buy-out/NN
the/DT
members/NNS
approved/VBD
overwhelmingly/RB
last/JJ
week/NN
./.
The/DT
pilot/NN
union/NN
is/VBZ
vowing/VBG
to/TO
pursue/VB
an/DT
acquisition/NN
whatever/WDT
the/DT
board/NN
decides/VBZ
./.
But/CC
if/IN
the/DT
board/NN
rejects/VBZ
a/DT
reduced/VBN
bid/NN
and/CC
decides/VBZ
to/TO
explore/VB
other/JJ
alternatives/NNS
,/,
it/PRP
could/MD
transform/VB
what/WP
has/VBZ
been/VBN
a/DT
harmonious/JJ
process/NN
into/IN
an/DT
adversarial/JJ
one/NN
./.
The/DT
pilots/NNS
could/MD
play/VB
hardball/NN
by/IN
noting/VBG
they/PRP
are/VBP
crucial/JJ
to/TO
any/DT
sale/NN
or/CC
restructuring/NN
because/IN
they/PRP
can/MD
refuse/VB
to/TO
fly/VB
the/DT
airplanes/NNS
./.
If/IN
they/PRP
were/VBD
to/TO
insist/VB
on/IN
a/DT
low/JJ
bid/NN
of/IN
,/,
say/VB
$/$
200/CD
a/DT
share/NN
,/,
the/DT
board/NN
might/MD
n't/RB
be/VB
able/JJ
to/TO
obtain/VB
a/DT
higher/JJR
offer/NN
from/IN
other/JJ
bidders/NNS
because/IN
banks/NNS
might/MD
hesitate/VB
to/TO
finance/VB
a/DT
transaction/NN
the/DT
pilots/NNS
oppose/VBP
./.
Also/RB
,/,
because/IN
UAL/NNP
Chairman/NNP
Stephen/NNP
Wolf/NNP
and/CC
other/JJ
UAL/NNP
executives/NNS
have/VBP
joined/VBN
the/DT
pilots/NNS
'/POS
bid/NN
,/,
the/DT
board/NN
might/MD
be/VB
forced/VBN
to/TO
exclude/VB
him/PRP
from/IN
its/PRP$
deliberations/NNS
in/IN
order/NN
to/TO
be/VB
fair/JJ
to/TO
other/JJ
bidders/NNS
./.
That/DT
could/MD
cost/VB
him/PRP
the/DT
chance/NN
to/TO
influence/VB
the/DT
outcome/NN
and/CC
perhaps/RB
join/VB
the/DT
winning/VBG
bidder/NN
./.
The/DT
White/NNP
House/NNP
budget/NN
director/NN
,/,
prodding/VBG
Congress/NNP
to/TO
finish/VB
work/NN
quickly/RB
on/IN
1990/CD
budget/NN
bills/NNS
,/,
is/VBZ
trying/VBG
to/TO
put/VB
some/DT
sting/NN
into/IN
the/DT
little-feared/JJ
spending/NN
cuts/NNS
that/WDT
were/VBD
triggered/VBN
yesterday/NN
under/IN
the/DT
Gramm-Rudman/NNP
deficit-reduction/NN
law/NN
./.
To/TO
impose/VB
``/``
a/DT
little/JJ
bit/NN
more/JJR
discipline/NN
''/''
on/IN
the/DT
budget/NN
process/NN
,/,
Budget/NNP
Director/NNP
Richard/NNP
Darman/NNP
said/VBD
he/PRP
wo/MD
n't/RB
give/VB
agencies/NNS
much/JJ
flexibility/NN
to/TO
shift/VB
funds/NNS
among/IN
different/JJ
programs/NNS
as/IN
a/DT
means/NN
of/IN
coping/VBG
with/IN
the/DT
law/NN
's/POS
requirements/NNS
./.
Some/DT
government/NN
budget/NN
experts/NNS
suggested/VBD
that/IN
Mr./NNP
Darman/NNP
's/POS
maneuver/NN
does/VBZ
n't/RB
amount/VB
to/TO
much/RB
more/JJR
than/IN
tough/JJ
talk/NN
./.
Nevertheless/RB
,/,
it/PRP
may/MD
add/VB
to/TO
pressure/NN
on/IN
the/DT
House/NNP
to/TO
follow/VB
the/DT
Senate/NNP
's/POS
lead/NN
and/CC
strip/VB
from/IN
pending/VBG
budget/NN
legislation/NN
scores/NNS
of/IN
costly/JJ
,/,
extraneous/JJ
provisions/NNS
./.
House/NNP
Speaker/NNP
Thomas/NNP
Foley/NNP
met/VBD
with/IN
committee/NN
chairmen/NNS
yesterday/NN
to/TO
try/VB
to/TO
move/VB
in/IN
that/DT
direction/NN
./.
``/``
We/PRP
are/VBP
going/VBG
to/TO
try/VB
to/TO
make/VB
an/DT
agreement/NN
with/IN
the/DT
Senate/NNP
that/IN
the/DT
president/NN
would/MD
sign/VB
,/,
''/''
the/DT
Washington/NNP
state/NN
Democrat/NNP
told/VBD
reporters/NNS
./.
The/DT
talks/NNS
are/VBP
to/TO
continue/VB
today/NN
./.
House/NNP
Republicans/NNPS
also/RB
are/VBP
reluctant/JJ
to/TO
pare/VB
down/RP
the/DT
1,878-page/JJ
measure/NN
--/:
at/IN
least/JJS
until/IN
they/PRP
are/VBP
guaranteed/JJ
that/IN
the/DT
provisions/NNS
they/PRP
care/VBP
about/IN
will/MD
get/VB
another/DT
vote/NN
./.
``/``
A/DT
lot/NN
of/IN
the/DT
guys/NNS
.../:
do/VBP
n't/RB
want/VB
it/PRP
all/DT
to/TO
just/RB
die/VB
,/,
''/''
said/VBD
House/NNP
GOP/NNP
leader/NN
Robert/NNP
Michel/NNP
R./NNP
,/,
Ill/NNP
./.
The/DT
House/NNP
did/VBD
n't/RB
move/NN
quickly/RB
enough/RB
to/TO
meet/VB
the/DT
Gramm-Rudman/NNP
deadline/NN
for/IN
passing/VBG
legislation/NN
to/TO
bring/VB
the/DT
projected/VBN
fiscal/JJ
1990/CD
deficit/NN
below/IN
the/DT
$/$
110/CD
billion/CD
target/NN
./.
As/IN
the/DT
law/NN
requires/VBZ
,/,
President/NNP
Bush/NNP
yesterday/NN
signed/VBD
an/DT
order/NN
cutting/VBG
federal/JJ
spending/NN
across/IN
the/DT
board/NN
by/IN
$/$
16.1/CD
billion/CD
./.
If/IN
removed/VBN
from/IN
the/DT
budget/NN
legislation/NN
,/,
the/DT
extraneous/JJ
provisions/NNS
in/IN
the/DT
House/NNP
bill/NN
--/:
including/VBG
ones/NNS
to/TO
cut/VB
capital-gains/NNS
taxes/NNS
,/,
provide/VB
new/JJ
aid/NN
for/IN
child/NN
care/NN
and/CC
repeal/VB
the/DT
catastrophic-illness/NN
insurance/NN
program/NN
--/:
could/MD
be/VB
reintroduced/VBN
as/IN
separate/JJ
bills/NNS
./.
``/``
What/WP
we/PRP
're/VBP
trying/VBG
to/TO
explore/VB
now/RB
is/VBZ
how/WRB
to/TO
protect/VB
these/DT
other/JJ
issues/NNS
,/,
''/''
said/VBD
House/NNP
Budget/NNP
Committee/NNP
Chairman/NNP
Leon/NNP
Panetta/NNP
D./NNP
,/,
Calif/NNP
./.
``/``
We/PRP
're/VBP
not/RB
going/VBG
to/TO
suddenly/RB
abandon/VB
them/PRP
./.
''/''
Reps./NNPS
Foley/NNP
and/CC
Michel/NNP
had/VBD
agreed/VBN
to/TO
streamline/VB
the/DT
deficit-reduction/NN
bill/NN
before/IN
the/DT
House/NNP
even/RB
took/VBD
it/PRP
up/RP
,/,
but/CC
Mr./NNP
Darman/NNP
and/CC
White/NNP
House/NNP
Chief/NNP
of/IN
Staff/NNP
John/NNP
Sununu/NNP
had/VBD
torpedoed/VBN
that/DT
plan/NN
in/IN
order/NN
to/TO
press/VB
their/PRP$
fight/NN
for/IN
a/DT
cut/NN
in/IN
capital-gains/NNS
taxes/NNS
./.
Congressional/JJ
leaders/NNS
rejected/VBD
suggestions/NNS
that/IN
their/PRP$
attempts/NNS
to/TO
speed/VB
the/DT
deficit-reduction/NN
bill/NN
had/VBD
anything/NN
to/TO
do/VB
with/IN
Friday/NNP
's/POS
stock/NN
market/NN
decline/NN
./.
``/``
We/PRP
are/VBP
responding/VBG
to/TO
our/PRP$
responsibility/NN
under/IN
the/DT
budget/NN
act/NN
,/,
''/''
Rep./NNP
Foley/NNP
said/VBD
./.
Even/RB
before/IN
the/DT
size/NN
of/IN
yesterday/NN
's/POS
rebound/NN
in/IN
stock/NN
prices/NNS
was/VBD
known/VBN
,/,
Mr./NNP
Darman/NNP
said/VBD
that/IN
Friday/NNP
's/POS
plunge/NN
``/``
would/MD
have/VB
no/DT
significant/JJ
effect/NN
on/IN
the/DT
budget/NN
process/NN
./.
''/''
When/WRB
the/DT
fiscal/JJ
year/NN
began/VBD
on/IN
Oct./NNP
1/CD
,/,
the/DT
Office/NNP
of/IN
Management/NNP
and/CC
Budget/NNP
began/VBD
withholding/VBG
4.3/CD
%/NN
of/IN
the/DT
Pentagon/NNP
's/POS
money/NN
and/CC
5.3/CD
%/NN
of/IN
other/JJ
agencies/NNS
'/POS
money/NN
,/,
as/IN
the/DT
Gramm-Rudman/NNP
law/NN
requires/VBZ
./.
Those/DT
cuts/NNS
,/,
known/VBN
as/IN
a/DT
``/``
sequester/NN
''/''
in/IN
budget/NN
jargon/NN
,/,
became/VBD
permanent/JJ
yesterday/NN
,/,
although/IN
Congress/NNP
could/MD
cancel/VB
or/CC
rescind/VB
them/PRP
whenever/WRB
it/PRP
wants/VBZ
to/TO
./.
Under/IN
a/DT
special/JJ
provision/NN
of/IN
the/DT
law/NN
,/,
the/DT
government/NN
yesterday/RB
began/VBD
slicing/VBG
2/CD
%/NN
from/IN
Medicare/NNP
payments/NNS
made/VBN
to/TO
doctors/NNS
and/CC
hospitals/NNS
./.
Nearly/RB
two-thirds/NNS
of/IN
all/DT
federal/JJ
spending/NN
--/:
including/VBG
Social/NNP
Security/NNP
payments/NNS
and/CC
salaries/NNS
of/IN
current/JJ
federal/JJ
employees/NNS
--/:
is/VBZ
exempt/JJ
from/IN
the/DT
Gramm-Rudman/NNP
cuts/NNS
./.
The/DT
rest/NN
of/IN
the/DT
government/NN
will/MD
be/VB
pinched/VBN
,/,
perhaps/RB
within/IN
a/DT
month/NN
,/,
if/IN
the/DT
cut/JJ
funds/NNS
are/VBP
n't/RB
restored/VBN
./.
Taking/VBG
a/DT
tough/JJ
bargaining/NN
position/NN
,/,
Mr./NNP
Darman/NNP
said/VBD
he/PRP
opposes/VBZ
restoring/VBG
the/DT
funds/NNS
when/WRB
Congress/NNP
finally/RB
wraps/VBZ
up/RP
its/PRP$
work/NN
on/IN
1990/CD
spending/NN
./.
The/DT
Gramm-Rudman/NNP
penalty/NN
wo/MD
n't/RB
be/VB
taken/VBN
seriously/RB
if/IN
agencies/NNS
merely/RB
``/``
figure/VBP
out/RB
how/WRB
to/TO
juggle/VB
the/DT
accounts/NNS
,/,
trusting/VBG
that/IN
Congress/NNP
is/VBZ
going/VBG
to/TO
restore/VB
all/PDT
the/DT
money/NN
a/DT
little/JJ
bit/NN
later/RB
,/,
''/''
he/PRP
said/VBD
./.
Congressional/JJ
Democrats/NNPS
were/VBD
quick/JJ
to/TO
disagree/VB
./.
Senate/NNP
Budget/NNP
Chairman/NNP
James/NNP
Sasser/NNP
D./NNP
,/,
Tenn/NNP
./.
We/PRP
do/VBP
n't/RB
do/VB
the/DT
American/JJ
people/NNS
any/RB
good/JJ
whatsoever/RB
by/IN
standing/VBG
by/RB
and/CC
letting/VBG
these/DT
automatic/JJ
cuts/NNS
go/VBP
into/IN
effect/NN
./.
''/''
To/TO
quicken/VB
the/DT
pain/NN
that/IN
the/DT
spending/NN
cuts/NNS
are/VBP
intended/VBN
to/TO
inflict/VB
,/,
Mr./NNP
Darman/NNP
said/VBD
the/DT
OMB/NNP
is/VBZ
making/VBG
the/DT
cuts/NNS
from/IN
each/DT
individual/JJ
program/NN
,/,
project/NN
or/CC
activity/NN
in/IN
the/DT
budget/NN
./.
Until/IN
yesterday/RB
,/,
OMB/NNP
had/VBD
indicated/VBN
it/PRP
would/MD
cut/VB
at/IN
the/DT
``/``
account/NN
''/''
level/NN
;/:
each/DT
account/NN
is/VBZ
comprised/VBN
of/IN
many/JJ
programs/NNS
,/,
projects/NNS
or/CC
activities/NNS
./.
Mr./NNP
Darman/NNP
said/VBD
the/DT
new/JJ
approach/NN
will/MD
give/VB
agencies/NNS
``/``
less/JJR
ability/NN
to/TO
shift/VB
from/IN
one/CD
area/NN
to/TO
another/NN
.../:
to/TO
fudge/VB
over/IN
things/NNS
./.
''/''
But/CC
at/IN
least/JJS
for/IN
some/DT
major/JJ
spending/NN
programs/NNS
,/,
government/NN
budget/NN
experts/NNS
said/VBD
,/,
OMB/NNP
has/VBZ
n't/RB
any/DT
significant/JJ
control/NN
of/IN
individual/JJ
programs/NNS
,/,
projects/NNS
or/CC
activities/NNS
./.
First/RB
to/TO
suffer/VB
from/IN
the/DT
spending/NN
cuts/NNS
will/MD
be/VB
programs/NNS
that/WDT
spend/VBP
most/JJS
of/IN
their/PRP$
money/NN
on/IN
personnel/NNS
,/,
Mr./NNP
Darman/NNP
said/VBD
./.
He/PRP
would/MD
n't/RB
predict/VB
how/WRB
long/JJ
it/PRP
would/MD
be/VB
before/IN
the/DT
first/JJ
layoffs/NNS
,/,
if/IN
any/DT
,/,
occur/VBP
./.
Under/IN
the/DT
law/NN
,/,
President/NNP
Bush/NNP
may/MD
exempt/VB
military/JJ
personnel/NNS
accounts/NNS
from/IN
the/DT
spending/NN
cuts/NNS
./.
He/PRP
has/VBZ
n't/RB
yet/RB
done/VBN
so/RB
./.
Mr./NNP
Darman/NNP
also/RB
said/VBD
yesterday/NN
that/IN
although/IN
the/DT
administration/NN
is/VBZ
n't/RB
any/RB
longer/RB
pushing/VBG
to/TO
include/VB
a/DT
cut/NN
in/IN
capital-gains/NNS
taxes/NNS
as/IN
part/NN
of/IN
the/DT
1990/CD
budget/NN
legislation/NN
,/,
the/DT
odds/NNS
are/VBP
8-to-5/JJ
in/IN
favor/NN
of/IN
winning/VBG
approval/NN
for/IN
capital/NN
gains/NNS
taxes/NNS
this/DT
year/NN
./.
E./NNP
Robert/NNP
Wallach/NNP
,/,
former/JJ
personal/JJ
legal/JJ
adviser/NN
to/TO
ex-Attorney/NNP
General/NNP
Edwin/NNP
Meese/NNP
,/,
was/VBD
sentenced/VBN
to/TO
six/CD
years/NNS
in/IN
prison/NN
and/CC
fined/VBN
$/$
250,000/CD
for/IN
his/PRP$
role/NN
in/IN
the/DT
Wedtech/NNP
Corp./NNP
scandal/NN
./.
Mr./NNP
Wallach/NNP
,/,
55/CD
years/NNS
old/JJ
,/,
was/VBD
convicted/VBN
in/IN
August/NNP
of/IN
racketeering/NN
and/CC
conspiring/VBG
to/TO
commit/VB
fraud/NN
./.
The/DT
charges/NNS
involved/VBD
$/$
425,000/CD
in/IN
payments/NNS
he/PRP
got/VBD
from/IN
Wedtech/NNP
in/IN
return/NN
for/IN
promising/VBG
to/TO
use/VB
his/PRP$
influence/NN
with/IN
Mr./NNP
Meese/NNP
and/CC
other/JJ
federal/JJ
officials/NNS
on/IN
behalf/NN
of/IN
the/DT
now-defunct/JJ
defense/NN
contractor/NN
./.
Though/IN
Mr./NNP
Wallach/NNP
's/POS
attorney/NN
,/,
Gary/NNP
Naftalis/NNP
,/,
described/VBD
the/DT
defendant/NN
as/IN
``/``
a/DT
relatively/RB
minor/JJ
player/NN
''/''
in/IN
the/DT
Wedtech/NNP
political-corruption/NN
case/NN
,/,
U.S./NNP
District/NNP
Judge/NNP
Richard/NNP
Owen/NNP
strongly/RB
disagreed/VBD
./.
At/IN
the/DT
sentencing/NN
in/IN
federal/JJ
court/NN
in/IN
New/NNP
York/NNP
,/,
Judge/NNP
Owen/NNP
told/VBD
Mr./NNP
Wallach/NNP
:/:
``/``
You/PRP
sold/VBD
your/PRP$
federal/JJ
office/NN
and/CC
the/DT
integrity/NN
of/IN
your/PRP$
federal/JJ
office/NN
for/IN
$/$
300,000/CD
before/IN
you/PRP
even/RB
got/VBD
the/DT
office/NN
./.
''/''
The/DT
money/NN
was/VBD
allegedly/RB
paid/VBN
to/TO
Mr./NNP
Wallach/NNP
in/IN
anticipation/NN
of/IN
his/PRP$
being/VBG
appointed/VBN
to/TO
a/DT
top/JJ
position/NN
in/IN
the/DT
Justice/NNP
Department/NNP
,/,
but/CC
that/DT
appointment/NN
was/VBD
never/RB
made/VBN
./.
Wedtech/NNP
,/,
a/DT
minority-owned/JJ
company/NN
in/IN
New/NNP
York/NNP
City/NNP
's/POS
South/NNP
Bronx/NNP
,/,
accounted/VBD
for/IN
the/DT
payments/NNS
as/IN
consulting/NN
fees/NNS
,/,
though/IN
no/DT
services/NNS
were/VBD
actually/RB
provided/VBN
,/,
the/DT
government/NN
charged/VBD
./.
Mr./NNP
Wallach/NNP
's/POS
co-defendants/NNS
,/,
W./NNP
Franklyn/NNP
Chinn/NNP
and/CC
R./NNP
Kent/NNP
London/NNP
,/,
were/VBD
also/RB
sentenced/VBN
./.
Mr./NNP
Chinn/NNP
,/,
formerly/RB
a/DT
financial/JJ
adviser/NN
to/TO
Mr./NNP
Meese/NNP
,/,
was/VBD
sentenced/VBN
to/TO
three/CD
years/NNS
and/CC
fined/VBN
$/$
100,000/CD
./.
Mr./NNP
London/NNP
,/,
who/WP
along/IN
with/IN
Mr./NNP
Chinn/NNP
worked/VBD
as/IN
a/DT
financial/JJ
consultant/NN
to/TO
Wedtech/NNP
,/,
was/VBD
sentenced/VBN
to/TO
five/CD
years/NNS
and/CC
fined/VBN
$/$
250,000/CD
./.
The/DT
defendants/NNS
,/,
who/WP
remain/VBP
free/JJ
on/IN
bail/NN
pending/VBG
their/PRP$
appeals/NNS
,/,
would/MD
have/VB
to/TO
serve/VB
a/DT
third/JJ
of/IN
their/PRP$
sentences/NNS
before/IN
being/VBG
eligible/NN
for/IN
parole/NN
./.
Lawyers/NNS
for/IN
the/DT
three/CD
defendants/NNS
have/VBP
said/VBD
they/PRP
plan/VBP
to/TO
appeal/VB
./.
Before/IN
issuing/VBG
the/DT
sentences/NNS
,/,
Judge/NNP
Owen/NNP
criticized/VBD
Mr./NNP
Wallach/NNP
for/IN
a/DT
host/NN
of/IN
alleged/VBN
ethical/JJ
and/CC
legal/JJ
improprieties/NNS
,/,
some/DT
of/IN
which/WDT
had/VBD
nothing/NN
to/TO
do/VB
with/IN
the/DT
Wedtech/NNP
case/NN
and/CC
most/JJS
of/IN
which/WDT
involved/VBD
Mr./NNP
Meese/NNP
./.
The/DT
judge/NN
also/RB
suggested/VBD
that/IN
Mr./NNP
Wallach/NNP
tried/VBD
to/TO
influence/VB
the/DT
jury/NN
in/IN
August/NNP
when/WRB
the/DT
verdict/NN
was/VBD
being/VBG
read/VBN
./.
About/IN
halfway/RB
through/IN
the/DT
verdict/NN
,/,
Mr./NNP
London/NNP
's/POS
mother/NN
had/VBD
a/DT
seizure/NN
and/CC
collapsed/VBD
in/IN
the/DT
front/JJ
row/NN
of/IN
the/DT
courtroom/NN
./.
As/IN
court/NN
officers/NNS
sought/VBD
to/TO
get/VB
help/NN
for/IN
the/DT
woman/NN
,/,
the/DT
judge/NN
said/VBD
,/,
Mr./NNP
Wallach/NNP
``/``
charged/VBD
at/IN
the/DT
jury/NN
and/CC
screamed/VBD
,/,
`/``
You/PRP
see/VBP
what/WP
you/PRP
have/VBP
done/VBN
./.
'/''
''/''
The/DT
judge/NN
said/VBD
he/PRP
did/VBD
n't/RB
understand/VB
why/WRB
Mr./NNP
Wallach/NNP
,/,
an/DT
experienced/JJ
trial/NN
lawyer/NN
,/,
would/MD
commit/VB
such/JJ
an/DT
outburst/NN
,/,
but/CC
he/PRP
said/VBD
Mr./NNP
Wallach/NNP
may/MD
have/VB
hoped/VBN
the/DT
jury/NN
would/MD
be/VB
unable/JJ
to/TO
continue/VB
with/IN
its/PRP$
verdict/NN
./.
After/IN
the/DT
sentencing/NN
,/,
Mr./NNP
Wallach/NNP
blamed/VBD
his/PRP$
Wedtech/NNP
woes/NNS
on/IN
his/PRP$
longtime/JJ
friendship/NN
with/IN
Mr./NNP
Meese/NNP
./.
He/PRP
said/VBD
prosecutors/NNS
``/``
were/VBD
looking/VBG
for/IN
a/DT
man/NN
between/IN
Ed/NNP
Meese/NNP
and/CC
Wedtech/NNP
.../:
./.
If/IN
they/PRP
could/MD
have/VB
gotten/VBN
Ed/NNP
Meese/NNP
that/WDT
would/MD
have/VB
been/VBN
the/DT
fulfillment/NN
of/IN
the/DT
dreams/NNS
./.
''/''
The/DT
defendants/NNS
also/RB
face/VBP
stiff/JJ
forfeiture/NN
penalties/NNS
because/IN
they/PRP
were/VBD
convicted/VBN
under/IN
the/DT
Racketeer/NNP
Influenced/NNP
and/CC
Corrupt/NNP
Organizations/NNP
law/NN
./.
The/DT
judge/NN
ordered/VBD
that/IN
the/DT
defendants/NNS
turn/VB
over/RP
all/PDT
the/DT
money/NN
earned/VBN
through/IN
the/DT
racketeering/NN
enterprise/NN
./.
For/IN
Mr./NNP
Wallach/NNP
,/,
the/DT
amount/NN
is/VBZ
$/$
425,000/CD
./.
Mr./NNP
London/NNP
must/MD
forfeit/VB
$/$
99,000/CD
,/,
and/CC
Mr./NNP
Chinn/NNP
must/MD
forfeit/VB
$/$
20,000/CD
;/:
together/RB
,/,
Mr./NNP
Chinn/NNP
and/CC
Mr./NNP
London/NNP
must/MD
jointly/RB
forfeit/VB
an/DT
additional/JJ
$/$
1.14/CD
million/CD
./.
Mr./NNP
Naftalis/NNP
said/VBD
Mr./NNP
Wallach/NNP
had/VBD
been/VBN
``/``
financially/RB
devastated/JJ
''/''
by/IN
the/DT
Wedtech/NNP
scandal/NN
./.
According/VBG
to/TO
a/DT
corrected/JJ
pre-sentencing/JJ
report/NN
,/,
Mr./NNP
Wallach/NNP
currently/RB
has/VBZ
a/DT
negative/JJ
net/JJ
worth/NN
of/IN
$/$
273,000/CD
./.
TEAMSTERS/NNPS
ELECTIONS/NNS
will/MD
be/VB
supervised/VBN
by/IN
court-appointed/JJ
officer/NN
./.
U.S./NNP
District/NNP
Judge/NNP
David/NNP
Edelstein/NNP
of/IN
New/NNP
York/NNP
ruled/VBD
that/IN
the/DT
elections/NNS
officer/NN
will/MD
play/VB
an/DT
extensive/JJ
role/NN
in/IN
all/DT
phases/NNS
of/IN
the/DT
International/NNP
Brotherhood/NNP
of/IN
Teamsters/NNPS
'/POS
1991/CD
election/NN
of/IN
top/JJ
union/NN
officials/NNS
./.
The/DT
government/NN
hailed/VBD
the/DT
ruling/NN
as/IN
a/DT
major/JJ
victory/NN
in/IN
its/PRP$
quest/NN
to/TO
achieve/VB
broad/JJ
reforms/NNS
in/IN
the/DT
union/NN
,/,
particularly/RB
the/DT
election/NN
of/IN
top/JJ
officials/NNS
by/IN
the/DT
rank/NN
and/CC
file/NN
./.
But/CC
Teamsters/NNPS
counsel/NN
James/NNP
Grady/NNP
claimed/VBD
that/IN
the/DT
power/NN
bestowed/VBN
upon/IN
the/DT
court-appointed/JJ
officer/NN
was/VBD
a/DT
departure/NN
from/IN
the/DT
terms/NNS
of/IN
the/DT
union/NN
's/POS
agreement/NN
with/IN
the/DT
government/NN
earlier/RB
this/DT
year/NN
./.
Mr./NNP
Grady/NNP
added/VBD
that/IN
to/TO
fund/VB
the/DT
type/NN
of/IN
supervision/NN
Judge/NNP
Edelstein/NNP
described/VBD
would/MD
cost/VB
the/DT
union/NN
at/IN
least/JJS
$/$
3.5/CD
million/CD
./.
In/IN
March/NNP
,/,
the/DT
Teamsters/NNPS
agreed/VBD
to/TO
a/DT
settlement/NN
of/IN
civil/JJ
racketeering/NN
charges/NNS
brought/VBN
by/IN
the/DT
U.S./NNP
attorney/NN
's/POS
office/NN
in/IN
Manhattan/NNP
./.
In/IN
its/PRP$
suit/NN
,/,
the/DT
government/NN
claimed/VBD
organized/JJ
crime/NN
figures/NNS
had/VBD
routinely/RB
picked/VBN
top/JJ
union/NN
officials/NNS
./.
Under/IN
the/DT
settlement/NN
terms/NNS
,/,
union/NN
leaders/NNS
agreed/VBD
that/IN
a/DT
court-appointed/JJ
administrator/NN
,/,
investigator/NN
and/CC
elections/NNS
official/NN
would/MD
oversee/VB
union/NN
activities/NNS
for/IN
three/CD
years/NNS
./.
Also/RB
,/,
the/DT
union/NN
agreed/VBD
to/TO
pay/VB
all/DT
expenses/NNS
related/VBN
to/TO
the/DT
officers/NNS
'/POS
oversight/NN
./.
But/CC
in/IN
his/PRP$
first/JJ
progress/NN
report/NN
,/,
filed/VBD
two/CD
weeks/NNS
ago/RB
,/,
Administrator/NNP
Frederick/NNP
B./NNP
Lacey/NNP
revealed/VBD
some/DT
disagreements/NNS
over/IN
the/DT
scope/NN
of/IN
such/JJ
oversight/NN
,/,
the/DT
interpretation/NN
of/IN
the/DT
settlement/NN
,/,
and/CC
financial/JJ
support/NN
./.
After/IN
the/DT
judge/NN
's/POS
ruling/NN
,/,
Mr./NNP
Grady/NNP
said/VBD
,/,
``/``
We/PRP
gave/VBD
up/RB
our/PRP$
right/NN
to/TO
a/DT
trial/NN
for/IN
the/DT
terms/NNS
of/IN
the/DT
agreement/NN
we/PRP
believe/VBP
that/IN
anything/NN
that/WDT
modifies/VBZ
those/DT
terms/NNS
is/VBZ
completely/RB
inappropriate/JJ
./.
''/''
JUDGE'S/NN

COMMENTS/NNS
on/IN
homosexual/JJ
murder/NN
victims/NNS
are/VBP
scrutinized/VBN
./.
A/DT
special/JJ
master/NN
,/,
appointed/VBN
by/IN
the/DT
Texas/NNP
Supreme/NNP
Court/NNP
,/,
received/VBD
evidence/NN
yesterday/NN
about/IN
comments/NNS
made/VBN
by/IN
Dallas/NNP
District/NNP
Judge/NNP
Jack/NNP
Hampton/NNP
in/IN
the/DT
wake/NN
of/IN
a/DT
murder/NN
trial/NN
in/IN
December/NNP
./.
Judge/NNP
Hampton/NNP
sentenced/VBD
the/DT
18-year-old/JJ
defendant/NN
to/TO
30/CD
years/NNS
in/IN
state/NN
prison/NN
for/IN
killing/VBG
two/CD
homosexual/JJ
men/NNS
in/IN
a/DT
city/NN
park/NN
./.
The/DT
judge/NN
was/VBD
then/RB
quoted/VBN
in/IN
the/DT
Dallas/NNP
Times/NNP
Herald/NNP
as/IN
referring/VBG
to/TO
the/DT
victims/NNS
as/IN
``/``
queers/NNS
''/''
and/CC
saying/VBG
``/``
these/DT
guys/NNS
would/MD
n't/RB
have/VB
been/VBN
killed/VBN
if/IN
they/PRP
had/VBD
n't/RB
been/VBN
cruising/VBG
the/DT
streets/NNS
picking/VBG
up/RP
teen-age/JJ
boys/NNS
./.
''/''
The/DT
comments/NNS
touched/VBD
off/RP
a/DT
furor/NN
in/IN
the/DT
Dallas/NNP
gay/JJ
community/NN
and/CC
prompted/VBD
several/JJ
complaints/NNS
about/IN
Judge/NNP
Hampton/NNP
to/TO
the/DT
State/NNP
Commission/NNP
on/IN
Judicial/NNP
Conduct/NNP
./.
The/DT
commission/NN
,/,
which/WDT
could/MD
remove/VB
Judge/NNP
Hampton/NNP
from/IN
the/DT
bench/NN
,/,
will/MD
act/VB
after/IN
reviewing/VBG
findings/NNS
to/TO
be/VB
submitted/VBN
within/IN
two/CD
weeks/NNS
by/IN
special/JJ
master/NN
Robert/NNP
R./NNP
Murray/NNP
of/IN
San/NNP
Antonio/NNP
./.
At/IN
a/DT
hearing/NN
yesterday/NN
,/,
Judge/NNP
Hampton/NNP
's/POS
defense/NN
team/NN
,/,
which/WDT
included/VBD
former/JJ
Dallas/NNP
County/NNP
District/NNP
Attorney/NNP
Henry/NNP
Wade/NNP
and/CC
former/JJ
U.S./NNP
Attorney/NNP
Jim/NNP
Rolfe/NNP
,/,
accused/VBD
the/DT
Times/NNP
Herald/NNP
reporter/NN
of/IN
misquoting/VBG
the/DT
judge/NN
./.
The/DT
defense/NN
lawyers/NNS
also/RB
argued/VBD
that/IN
it/PRP
was/VBD
appropriate/JJ
for/IN
the/DT
judge/NN
to/TO
consider/VB
whether/IN
the/DT
murder/NN
victims/NNS
were/VBD
committing/VBG
a/DT
crime/NN
at/IN
the/DT
time/NN
they/PRP
were/VBD
killed/VBN
./.
But/CC
Bill/NNP
Hornung/NNP
,/,
general/JJ
counsel/NN
for/IN
the/DT
judicial-conduct/NN
commission/NN
,/,
said/VBD
the/DT
defense/NN
team/NN
was/VBD
sidestepping/VBG
the/DT
focus/NN
of/IN
the/DT
inquiry/NN
--/:
whether/IN
Judge/NNP
Hampton/NNP
violated/VBD
judicial/JJ
ethics/NNS
by/IN
commenting/VBG
to/TO
the/DT
public/NN
while/IN
a/DT
motion/NN
for/IN
new/JJ
trial/NN
was/VBD
pending/VBG
./.
``/``
The/DT
place/NN
where/WRB
a/DT
judge/NN
can/MD
comment/VB
and/CC
explain/VB
his/PRP$
rationale/NN
the/DT
bench/NN
.../:
not/RB
in/IN
the/DT
privacy/NN
of/IN
a/DT
little/JJ
impromptu/JJ
press/NN
conference/NN
,/,
''/''
Mr./NNP
Hornung/NNP
said/VBD
./.
SENATE/NNP
JUDICIARY/NNP
COMMITTEE/NNP
gets/VBZ
legislation/NN
to/TO
limit/VB
death-penalty/NN
appeals/NNS
./.
Sen./NNP
Joseph/NNP
Biden/NNP
D./NNP
,/,
Del./NNP
committee/NN
chairman/NN
,/,
proposed/VBD
legislation/NN
that/WDT
would/MD
carry/VB
out/RB
the/DT
streamlining/NN
of/IN
death-penalty/NN
appeals/NNS
in/IN
federal/JJ
court/NN
that/WDT
was/VBD
proposed/VBN
last/JJ
month/NN
by/IN
a/DT
special/JJ
task/NN
force/NN
appointed/VBN
by/IN
Chief/NNP
Justice/NNP
of/IN
the/DT
U.S./NNP
William/NNP
Rehnquist/NNP
./.
Sen./NNP
Biden/NNP
proposed/VBD
the/DT
legislation/NN
to/TO
comply/VB
with/IN
a/DT
law/NN
passed/VBN
last/JJ
year/NN
requiring/VBG
the/DT
Senate/NNP
to/TO
expedite/VB
consideration/NN
of/IN
proposals/NNS
made/VBN
by/IN
the/DT
task/NN
force/NN
,/,
led/VBN
by/IN
retired/JJ
Supreme/NNP
Court/NNP
Justice/NNP
Lewis/NNP
Powell/NNP
./.
The/DT
task/NN
force/NN
proposed/VBN
that/IN
states/NNS
provide/VBP
lawyers/NNS
to/TO
death-row/NN
inmates/NNS
for/IN
civil/JJ
,/,
post-conviction/JJ
lawsuits/NNS
,/,
called/VBN
habeas/NNS
corpus/NN
cases/NNS
,/,
in/IN
which/WDT
they/PRP
challenge/VBP
the/DT
constitutionality/NN
of/IN
their/PRP$
convictions/NNS
./.
In/IN
exchange/NN
,/,
the/DT
number/NN
of/IN
such/JJ
lawsuits/NNS
each/DT
inmate/NN
may/MD
file/VB
would/MD
be/VB
sharply/RB
curtailed/VBN
,/,
allowing/VBG
states/NNS
greater/JJR
certainty/NN
of/IN
being/VBG
able/JJ
to/TO
execute/VB
those/DT
on/IN
death/NN
row/NN
./.
When/WRB
Chief/NNP
Justice/NNP
Rehnquist/NNP
sent/VBD
the/DT
report/NN
to/TO
Congress/NNP
,/,
a/DT
majority/NN
of/IN
federal/JJ
judges/NNS
on/IN
the/DT
policy-making/NN
Judicial/NNP
Conference/NNP
complained/VBD
they/PRP
had/VBD
n't/RB
been/VBN
given/VBN
a/DT
chance/NN
to/TO
consider/VB
the/DT
recommendations/NNS
./.
The/DT
legislation/NN
introduced/VBN
by/IN
Sen./NNP
Biden/NNP
adopts/VBZ
the/DT
same/JJ
approach/NN
as/IN
the/DT
Powell/NNP
report/NN
:/:
state-provided/JJ
lawyers/NNS
,/,
in/IN
exchange/NN
for/IN
limiting/VBG
appeals/NNS
./.
But/CC
the/DT
senator/NN
's/POS
bill/NN
eases/VBZ
a/DT
number/NN
of/IN
the/DT
restrictions/NNS
./.
Leslie/NNP
Harris/NNP
,/,
an/DT
American/NNP
Civil/NNP
Liberties/NNPS
Union/NNP
spokeswoman/NN
criticized/VBD
the/DT
Powell/NNP
proposals/NNS
,/,
but/CC
said/VBD
the/DT
Biden/NNP
legislation/NN
is/VBZ
``/``
a/DT
more/RBR
moderate/JJ
,/,
thoughtful/JJ
approach/NN
,/,
''/''
although/IN
the/DT
group/NN
will/MD
likely/RB
oppose/VB
it/PRP
./.
APPLE/NNP
COMPUTER/NNP
Inc./NNP
's/POS
former/JJ
general/JJ
counsel/NN
John/NNP
P./NNP
Karalis/NNP
joined/VBD
the/DT
Phoenix/NNP
,/,
Ariz./NNP
,/,
law/NN
firm/NN
of/IN
Brown/NNP
&/CC
Bain/NNP
./.
Mr./NNP
Karalis/NNP
,/,
51/CD
,/,
will/MD
specialize/VB
in/IN
corporate/JJ
law/NN
and/CC
international/JJ
law/NN
at/IN
the/DT
110-lawyer/JJ
firm/NN
./.
Before/IN
joining/VBG
Apple/NNP
in/IN
1986/CD
,/,
he/PRP
served/VBD
as/IN
general/JJ
counsel/NN
at/IN
Sperry/NNP
Corp/NNP
./.
A/DT
surge/NN
in/IN
sales/NNS
in/IN
August/NNP
helped/VBD
trim/VB
inventory/NN
levels/NNS
of/IN
U.S./NNP
businesses/NNS
,/,
Commerce/NNP
Department/NNP
figures/NNS
show/VBP
./.
Sales/NNS
at/IN
factories/NNS
,/,
retailers/NNS
and/CC
wholesalers/NNS
jumped/VBD
3.1/CD
%/NN
in/IN
August/NNP
,/,
the/DT
department/NN
reported/VBD
,/,
far/RB
outstripping/VBG
a/DT
0.3/CD
%/NN
climb/NN
in/IN
inventories/NNS
./.
As/IN
a/DT
result/NN
,/,
inventories/NNS
fell/VBD
back/RB
to/TO
the/DT
equivalent/NN
of/IN
1.5/CD
months/NNS
of/IN
sales/NNS
./.
Inventories/NNS
had/VBD
been/VBN
running/VBG
at/IN
about/IN
this/DT
level/NN
--/:
one/CC
that/IN
economists/NNS
regard/VBP
as/RB
manageable/JJ
--/:
for/IN
much/RB
of/IN
the/DT
year/NN
before/IN
they/PRP
jumped/VBD
to/TO
1.54/CD
months/NNS
in/IN
July/NNP
./.
The/DT
numbers/NNS
are/VBP
reassuring/JJ
news/NN
for/IN
the/DT
economy/NN
./.
If/IN
goods/NNS
on/IN
shelves/NNS
and/CC
backlots/NNS
pile/VBP
up/RB
too/RB
high/JJ
,/,
retailers/NNS
often/RB
cut/VBP
back/RB
on/IN
orders/NNS
and/CC
factories/NNS
on/IN
production/NN
./.
The/DT
chain/NN
reaction/NN
can/MD
lead/VB
to/TO
layoffs/NNS
and/CC
ultimately/RB
a/DT
recession/NN
./.
In/IN
July/NNP
,/,
business/NN
inventories/NNS
had/VBD
climbed/VBN
0.9/CD
%/NN
,/,
a/DT
number/NN
the/DT
department/NN
revised/VBN
from/IN
its/PRP$
initial/JJ
report/NN
of/IN
0.6/CD
%/NN
./.
Sales/NNS
,/,
meanwhile/RB
,/,
dropped/VBD
0.9/CD
%/NN
./.
In/IN
August/NNP
,/,
business/NN
inventories/NNS
totaled/VBD
$/$
789.87/CD
billion/CD
,/,
while/IN
sales/NNS
grew/VBD
to/TO
$/$
526.79/CD
billion/CD
,/,
the/DT
department/NN
said/VBD
./.
Manufacturers/NNS
showed/VBD
the/DT
biggest/JJS
sales/NNS
gains/NNS
;/:
their/PRP$
sales/NNS
rose/VBD
5.6/CD
%/NN
,/,
while/IN
factory/NN
inventories/NNS
only/RB
grew/VBD
0.3/CD
%/NN
./.
Retailers/NNS
'/POS
sales/NNS
increased/VBD
0.7/CD
%/NN
,/,
as/IN
did/VBD
their/PRP$
inventories/NNS
./.
Wholesalers/NNS
'/POS
sales/NNS
climbed/VBD
1.5/CD
%/NN
,/,
while/IN
their/PRP$
inventories/NNS
dropped/VBD
0.1/CD
%/NN
./.
Here/RB
is/VBZ
a/DT
summary/NN
of/IN
the/DT
Commerce/NNP
Department/NNP
's/POS
report/NN
on/IN
business/NN
inventories/NNS
and/CC
sales/NNS
in/IN
in/IN
August/NNP
./.
The/DT
figures/NNS
are/VBP
in/IN
billions/NNS
of/IN
dollars/NNS
,/,
seasonally/RB
adjusted/JJ
:/:
Pall/NNP
Corp./NNP
said/VBD
it/PRP
expects/VBZ
a/DT
reduction/NN
in/IN
net/JJ
income/NN
for/IN
the/DT
first/JJ
quarter/NN
ended/VBN
Oct./NNP
28/CD
of/IN
about/IN
$/$
2/CD
million/CD
,/,
or/CC
five/CD
cents/NNS
a/DT
share/NN
,/,
as/IN
a/DT
result/NN
of/IN
Hurricane/NNP
Hugo/NNP
./.
The/DT
maker/NN
of/IN
disposable/JJ
filters/NNS
said/VBD
revenue/NN
will/MD
be/VB
reduced/VBN
about/IN
$/$
3/CD
million/CD
because/IN
of/IN
damage/NN
done/VBN
by/IN
the/DT
hurricane/NN
to/TO
the/DT
company/NN
's/POS
three/CD
plants/NNS
in/IN
Puerto/NNP
Rico/NNP
./.
In/IN
the/DT
year-earlier/JJ
quarter/NN
,/,
Pall/NNP
had/VBD
net/NN
of/IN
$/$
8.3/CD
million/CD
,/,
or/CC
22/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
100.5/CD
million/CD
./.
The/DT
bulls/NNS
are/VBP
back/RB
in/IN
the/DT
art-auction/NN
china/NN
shops/NNS
,/,
predicting/VBG
higher/JJR
prices/NNS
and/CC
higher/JJR
volume/NN
than/IN
ever/RB
before/RB
./.
Christie/NNP
's/POS
and/CC
Sotheby/NNP
's/POS
,/,
the/DT
two/CD
major/JJ
New/NNP
York/NNP
houses/NNS
,/,
are/VBP
about/IN
to/TO
offer/VB
a/DT
large/JJ
number/NN
of/IN
impressionist/NN
and/CC
modern/JJ
paintings/NNS
at/IN
estimates/NNS
unheard/JJ
of/IN
even/RB
five/CD
years/NNS
ago/RB
./.
They/PRP
are/VBP
betting/VBG
that/DT
demand/NN
for/IN
these/DT
pictures/NNS
will/MD
be/VB
so/RB
strong/JJ
that/IN
the/DT
market/NN
will/MD
swallow/VB
everything/NN
that/WDT
is/VBZ
thrown/VBN
at/IN
it/PRP
and/CC
prices/NNS
still/RB
will/MD
rise/VB
--/:
a/DT
lot/NN
./.
As/IN
art/NN
dealer/NN
Richard/NNP
Feigen/NNP
sees/VBZ
it/PRP
,/,
``/``
There/EX
is/VBZ
unlimited/JJ
money/NN
trying/VBG
to/TO
absorb/VB
itself/PRP
in/IN
art/NN
./.
''/''
Step/VB
right/RB
this/DT
way/NN
./.
More/JJR
than/IN
$/$
600/CD
million/CD
of/IN
impressionist/NN
and/CC
modern/JJ
paintings/NNS
are/VBP
about/IN
to/TO
hit/VB
the/DT
New/NNP
York/NNP
auction/NN
block/NN
--/:
far/RB
outstripping/VBG
May/NNP
's/POS
four-day/JJ
$/$
400/CD
million/CD
bonanza/NN
./.
This/DT
season/NN
Lorinda/NNP
de/FW
Roulet/NNP
sister/NN
of/IN
John/NNP
Whitney/NNP
Payson/NNP
,/,
for/IN
whom/WP
``/``
Irises/NNS
''/''
by/IN
Vincent/NNP
van/NNP
Gogh/NNP
was/VBD
sold/VBN
for/IN
$/$
53.9/CD
million/CD
in/IN
November/NNP
of/IN
1987/CD
,/,
to/TO
the/DT
Australian/NNP
Alan/NNP
Bond/NNP
,/,
who/WP
still/RB
has/VBZ
n't/RB
taken/VBN
possession/NN
because/IN
he/PRP
has/VBZ
n't/RB
yet/RB
paid/VBN
off/RP
the/DT
loan/NN
Sotheby/NNP
's/POS
offered/VBN
him/PRP
at/IN
the/DT
sale/NN
another/DT
biggie/NN
to/TO
Sotheby/NNP
's/POS
./.
``/``
Au/FW
Lapin/FW
Agile/FW
''/''
is/VBZ
a/DT
1905/CD
Rose/NNP
Period/NNP
Picasso/NNP
being/VBG
billed/VBN
as/IN
``/``
the/DT
most/RBS
important/JJ
20th-century/JJ
picture/NN
ever/RB
to/TO
come/VB
up/RB
for/IN
auction/NN
./.
''/''
It/PRP
may/MD
sell/VB
for/IN
more/JJR
than/IN
any/DT
previous/JJ
Picasso/NNP
--/:
the/DT
record/NN
is/VBZ
$/$
47.85/CD
million/CD
set/VBN
in/IN
May/NNP
for/IN
``/``
Self/NN
Portrait/NN
:/:
Yo/NNP
Picasso/NNP
./.
''/''
Sotheby/NNP
's/POS
also/RB
weighs/VBZ
in/RB
with/IN
the/DT
John/NNP
T./NNP
Dorrance/NNP
Jr./NNP
collection/NN
of/IN
impressionists/NNS
at/IN
an/DT
estimated/VBN
$/$
100/CD
million-plus/NNS
tomorrow/NN
a/DT
juicy/JJ
assortment/NN
of/IN
paintings/NNS
from/IN
other/JJ
sources/NNS
,/,
more/JJR
than/IN
35/CD
of/IN
which/WDT
are/VBP
expected/VBN
to/TO
sell/VB
in/IN
November/NNP
for/IN
at/IN
least/JJS
$/$
1/CD
million/CD
each/DT
./.
Christie/NNP
's/POS
has/VBZ
snagged/VBN
the/DT
15/CD
impressionist/NN
and/CC
modern/JJ
paintings/NNS
being/VBG
pruned/VBN
from/IN
Paul/NNP
Mellon/NNP
's/POS
vast/JJ
collection/NN
,/,
including/VBG
the/DT
probable/JJ
$/$
30/CD
million-plus/NN
``/``
Rue/NN
Mosnier/NN
,/,
Paris/NNP
,/,
Decorated/VBN
With/IN
Flags/NNS
on/IN
June/NNP
30/CD
,/,
1878/CD
''/''
by/IN
Edouard/NNP
Manet/NNP
Mellon/NNP
at/IN
the/DT
Jacob/NNP
Goldschmidt/NNP
sale/NN
in/IN
London/NNP
in/IN
1958/CD
for/IN
$/$
316,400/CD
a/DT
van/NNP
Gogh/NNP
,/,
``/``
Trunk/NN
of/IN
an/DT
Old/JJ
Yew/NN
Tree/NN
,/,
Arles/NN
,/,
''/''
estimated/VBN
at/IN
$/$
25/CD
million-plus/NN
./.
Other/JJ
one-owner/JJ
collections/NNS
include/VBP
Billy/NNP
Wilder/NNP
's/POS
more/RBR
modest/JJ
but/CC
choice/JJ
offerings/NNS
,/,
and/CC
the/DT
George/NNP
N./NNP
Richard/NNP
collection/NN
--/:
piled/VBN
on/IN
top/NN
of/IN
Christie/NNP
's/POS
estimated/VBN
$/$
150/CD
million/CD
--/:
$/$
200/CD
million/CD
of/IN
other/JJ
impressionist/NN
goodies/NNS
./.
All/PDT
these/DT
will/MD
go/VB
under/IN
the/DT
hammer/NN
on/IN
Nov./NNP
13/CD
and/CC
14/CD
./.
``/``
A/DT
strong/JJ
art/NN
market/NN
is/VBZ
bringing/VBG
out/RP
paintings/NNS
I/PRP
never/RB
expected/VBD
to/TO
see/VB
on/IN
the/DT
market/NN
,/,
''/''
says/VBZ
David/NNP
Nash/NNP
,/,
director/NN
of/IN
Sotheby/NNP
's/POS
Fine/JJ
Arts/NNS
Division/NN
./.
Some/DT
museum/NN
directors/NNS
never/RB
expected/VBD
to/TO
see/VB
them/PRP
there/RB
either/RB
./.
But/CC
since/IN
the/DT
1986/CD
tax/NN
laws/NNS
drastically/RB
reduced/VBD
deductions/NNS
for/IN
the/DT
donation/NN
of/IN
appreciated/VBN
property/NN
and/CC
reduced/VBD
overall/JJ
tax/NN
rates/NNS
deductions/NNS
less/RBR
significant/JJ
)/)
,/,
charitable/JJ
donations/NNS
to/TO
museums/NNS
,/,
when/WRB
anyone/NN
makes/VBZ
them/PRP
,/,
are/VBP
very/RB
charitable/JJ
indeed/RB
./.
And/CC
given/VBN
the/DT
seductive/JJ
prices/NNS
held/VBD
out/RB
by/IN
the/DT
auction/NN
houses/NNS
,/,
the/DT
urge/NN
to/TO
sell/VB
can/MD
--/:
and/CC
apparently/RB
has/VBZ
--/:
become/VB
irresistible/JJ
./.
Of/IN
the/DT
current/JJ
group/NN
of/IN
paintings/NNS
,/,
it/PRP
's/VBZ
hard/JJ
to/TO
say/VB
which/WDT
,/,
in/IN
the/DT
days/NNS
before/IN
tax/NN
reform/NN
,/,
might/MD
have/VB
been/VBN
donated/VBN
instead/RB
of/IN
sold/VBN
./.
No/DT
museum/NN
director/NN
will/MD
risk/VB
offending/VBG
potential/JJ
patrons/NNS
by/IN
publicly/RB
airing/VBG
disappointed/JJ
hopes/NNS
./.
Philadelphia/NNP
Museum/NNP
head/NN
Anne/NNP
d'Harnoncourt/NNP
insists/VBZ
that/IN
even/RB
though/IN
John/NNP
Dorrance/NNP
may/MD
have/VB
been/VBN
the/DT
chairman/NN
of/IN
her/PRP$
Board/NN
of/IN
Trustees/NNS
,/,
``/``
We/PRP
were/VBD
n't/RB
expecting/VBG
the/DT
pictures/NNS
we/PRP
did/VBD
n't/RB
get/VB
./.
''/''
Although/IN
Sotheby/NNP
's/POS
points/VBZ
out/RB
that/IN
it/PRP
is/VBZ
``/``
an/DT
international/JJ
organization/NN
''/''
not/RB
specifically/RB
concerned/VBN
with/IN
potential/JJ
losses/NNS
to/TO
American/JJ
museums/NNS
,/,
others/NNS
are/VBP
up/IN
in/IN
arms/NNS
:/:
``/``
Donations/NNS
have/VBP
always/RB
been/VBN
the/DT
main/JJ
source/NN
of/IN
increased/VBN
museum/NN
collections/NNS
,/,
''/''
says/VBZ
Edward/NNP
H./NNP
Able/NNP
Jr./NNP
,/,
executive/NN
director/NN
of/IN
the/DT
American/NNP
Association/NNP
of/IN
Museums/NNPS
./.
``/``
Now/RB
there/EX
is/VBZ
a/DT
hemorrhaging/NN
of/IN
this/DT
country/NN
's/POS
patrimony/NN
./.
''/''
According/VBG
to/TO
a/DT
study/NN
conducted/VBN
by/IN
the/DT
Association/NNP
of/IN
Art/NNP
Museum/NNP
Directors/NNPS
,/,
the/DT
drop/NN
in/IN
the/DT
dollar/NN
value/NN
of/IN
donated/VBN
works/NNS
of/IN
art/NN
since/IN
1986/CD
is/VBZ
more/JJR
than/IN
50/CD
%/NN
./.
``/``
This/DT
is/VBZ
just/RB
the/DT
tip/NN
of/IN
the/DT
iceberg/NN
,/,
because/IN
no/DT
major/JJ
collector/NN
has/VBZ
died/VBN
recently/RB
,/,
''/''
says/VBZ
Christopher/NNP
Burge/NNP
,/,
president/NN
of/IN
Christie/NNP
's/POS
America/NNP
./.
``/``
The/DT
next/JJ
10/CD
years/NNS
are/VBP
going/VBG
to/TO
be/VB
a/DT
wasteland/NN
for/IN
American/JJ
museums/NNS
./.
''/''
But/CC
not/RB
for/IN
auction/NN
houses/NNS
./.
Their/PRP$
sales/NNS
have/VBP
turned/VBN
into/IN
theater/NN
for/IN
a/DT
world/NN
audience/NN
./.
Even/RB
before/IN
the/DT
sales/NNS
,/,
the/DT
hoopla/NN
is/VBZ
well/RB
under/IN
way/NN
./.
Major/JJ
attractions/NNS
have/VBP
out-of-town/JJ
tryouts/NNS
./.
``/``
Au/FW
Lapin/FW
Agile/FW
,/,
''/''
some/DT
of/IN
the/DT
Mellon/NNP
paintings/NNS
,/,
and/CC
others/NNS
went/VBD
around/IN
the/DT
world/NN
on/IN
a/DT
series/NN
of/IN
whistle-stop/JJ
exhibition/NN
tours/NNS
;/:
Billy/NNP
Wilder/NNP
's/POS
pictures/NNS
went/VBD
to/TO
a/DT
party/NN
at/IN
the/DT
Beverly/NNP
Hills/NNPS
Hotel/NNP
;/:
and/CC
the/DT
Dorrance/NNP
paintings/NNS
hung/VBD
for/IN
five/CD
days/NNS
in/IN
the/DT
Philadelphia/NNP
Museum/NNP
of/IN
Art/NNP
./.
Sotheby/NNP
's/POS
PR/NNP
department/NN
could/MD
n't/RB
have/VB
pulled/VBD
that/IN
one/NN
off/RP
;/:
Dorrance/NNP
's/POS
executors/NNS
``/``
requested/VBD
''/''
it/PRP
./.
At/IN
last/JJ
,/,
however/RB
,/,
the/DT
warmup/NN
is/VBZ
done/VBN
and/CC
the/DT
action/NN
is/VBZ
about/IN
to/TO
begin/VB
./.
And/CC
it/PRP
will/MD
soon/RB
be/VB
clear/JJ
whether/IN
enough/JJ
people/NNS
will/MD
be/VB
raising/VBG
those/DT
little/JJ
bidding/NN
paddles/NNS
,/,
no/DT
matter/NN
what/WP
the/DT
cost/NN
./.
The/DT
weak/JJ
dollar/NN
makes/VBZ
our/PRP$
market/NN
a/DT
playground/NN
for/IN
foreign/JJ
bidders/NNS
,/,
and/CC
our/PRP$
sorry/JJ
balance/NN
of/IN
trade/NN
has/VBZ
given/VBN
them/PRP
plenty/NN
of/IN
dollars/NNS
to/TO
play/VB
with/IN
./.
``/``
In/IN
many/JJ
ways/NNS
the/DT
Japanese/NNPS
--/:
particularly/RB
Japanese/JJ
corporations/NNS
--/:
dictate/VBP
art/NN
price/NN
levels/NNS
,/,
''/''
says/VBZ
Susan/NNP
Seidel/NNP
of/IN
William/NNP
Beadleston/NNP
,/,
a/DT
New/NNP
York/NNP
private/JJ
dealing/NN
concern/NN
./.
``/``
They/PRP
are/VBP
willing/JJ
to/TO
pay/VB
almost/RB
anything/NN
./.
''/''
But/CC
why/WRB
art/NN
?/.
Are/VBP
we/PRP
talking/VBG
pure/JJ
aesthetic/JJ
appreciation/NN
here/RB
?/.
For/IN
many/JJ
buyers/NNS
,/,
that/WDT
still/RB
is/VBZ
major/JJ
motivation/NN
./.
But/CC
the/DT
stakes/NNS
are/VBP
now/RB
very/RB
high/JJ
and/CC
for/IN
your/PRP$
$/$
40/CD
million/CD
you/PRP
can/MD
buy/VB
only/RB
the/DT
best/JJS
of/IN
what/WP
is/VBZ
available/JJ
--/:
which/WDT
may/MD
not/RB
be/VB
the/DT
best/JJS
there/EX
is/VBZ
./.
But/CC
at/IN
least/JJS
the/DT
auction/NN
process/NN
illustrates/VBZ
so/RB
beautifully/RB
that/IN
everybody/NN
else/JJ
wanted/VBD
to/TO
have/VB
it/PRP
too/RB
./.
For/IN
some/DT
,/,
the/DT
social/JJ
status/NN
that/WDT
can/MD
be/VB
acquired/VBN
in/IN
this/DT
way/NN
is/VBZ
the/DT
point/NN
of/IN
the/DT
game/NN
./.
``/``
They/PRP
buy/VBP
the/DT
co-op/NN
,/,
they/PRP
buy/VBP
the/DT
cars/NNS
,/,
''/''
says/VBZ
Ms./NNP
Seidel/NNP
./.
``/``
Then/RB
they/PRP
buy/VBP
`/``
brand/NN
names/NNS
'/POS
like/JJ
Picasso/NN
to/TO
put/VB
on/IN
the/DT
wall/NN
./.
''/''
But/CC
at/IN
these/DT
price/NN
levels/NNS
,/,
confidence/NN
in/IN
the/DT
``/``
investment/NN
''/''
potential/NN
of/IN
major/JJ
paintings/NNS
must/MD
be/VB
playing/VBG
a/DT
part/NN
in/IN
fueling/VBG
the/DT
collecting/NN
frenzy/NN
./.
Big-bucks/JJ
buyers/NNS
trust/VBP
that/IN
the/DT
market/NN
will/MD
continue/VB
its/PRP$
strong/JJ
surge/NN
./.
``/``
In/IN
October/NNP
of/IN
'87/CD
people/NNS
saw/VBD
that/IN
everything/NN
else/RB
went/VBD
down/RB
but/CC
art/NN
went/VBD
up/RB
,/,
''/''
Desmond/NNP
Corcoran/NNP
of/IN
London/NNP
's/POS
Alex/NNP
Reid/NNP
&/CC
Lefevre/NNP
Ltd./NNP
gallery/NN
points/VBZ
out/RB
./.
Since/IN
then/RB
,/,
the/DT
market/NN
has/VBZ
continued/VBN
to/TO
rise/VB
,/,
but/CC
now/RB
the/DT
size/NN
of/IN
the/DT
estimates/NNS
seems/VBZ
to/TO
be/VB
making/VBG
some/DT
people/NNS
nervous/JJ
./.
``/``
Zey/PRP
are/VBP
crazee/JJ
!/.
''/''
shrieked/VBD
one/CD
French/JJ
dealer/NN
,/,
reeling/VBG
from/IN
auction/NN
estimate/NN
sticker/NN
shock/NN
./.
In/IN
a/DT
lower/JJR
key/NN
,/,
Mr./NNP
Corcoran/NNP
finds/VBZ
the/DT
world/NN
``/``
full/JJ
of/IN
strange/JJ
speculators/NNS
''/''
and/CC
the/DT
auction/NN
estimates/NNS
``/``
incredible/JJ
,/,
''/''
and/CC
suggests/VBZ
the/DT
Dorrance/NNP
sale/NN
as/IN
a/DT
sort/NN
of/IN
early/JJ
warning/NN
system/NN
:/:
``/``
These/DT
pictures/NNS
are/VBP
not/RB
absolutely/RB
top/JJ
quality/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
So/RB
if/IN
the/DT
market/NN
absorbs/VBZ
those/DT
,/,
what/WP
comes/VBZ
three/CD
weeks/NNS
later/RB
will/MD
do/VB
just/RB
fine/JJ
./.
''/''
If/IN
all/DT
goes/VBZ
well/RB
,/,
if/IN
the/DT
Picasso/NNP
hits/VBZ
$/$
75/CD
million/CD
,/,
and/CC
Mellon/NNP
,/,
Dorrance/NNP
,/,
Wilder/NNP
and/CC
the/DT
rest/NN
get/VBP
what/WP
they/PRP
bargained/VBD
for/IN
,/,
the/DT
uncomfortable/JJ
,/,
questioning/JJ
buzz/NN
in/IN
the/DT
art/NN
marketplace/NN
will/MD
trail/VB
off/RB
into/IN
sighs/NNS
of/IN
relief/NN
,/,
only/RB
to/TO
begin/VB
anew/RB
slightly/RB
louder/RBR
than/IN
before/RB
,/,
as/IN
the/DT
cycle/NN
starts/VBZ
over/RP
in/IN
the/DT
spring/NN
./.
Because/IN
for/IN
some/DT
,/,
the/DT
art/NN
market/NN
has/VBZ
become/VBN
a/DT
sort/NN
of/IN
magic/JJ
beanstalk/NN
rising/VBG
into/IN
the/DT
clouds/NNS
at/IN
a/DT
cartoon/NN
rate/NN
of/IN
speed/NN
./.
Nobody/NN
knows/VBZ
what/WP
is/VBZ
at/IN
the/DT
top/NN
,/,
but/CC
they/PRP
are/VBP
hoping/VBG
it/PRP
is/VBZ
very/RB
far/RB
away/RB
./.
Ms./NNP
Berman/NNP
covers/VBZ
the/DT
auction/NN
scene/NN
./.
Motorola/NNP
Inc./NNP
said/VBD
it/PRP
will/MD
sell/VB
its/PRP$
Tegal/NNP
Corp./NNP
unit/NN
to/TO
a/DT
Tegal/NNP
management/NN
group/NN
for/IN
a/DT
sum/NN
that/DT
was/VBD
n't/RB
disclosed/VBN
./.
A/DT
spokesman/NN
for/IN
the/DT
maker/NN
of/IN
electronic/JJ
equipment/NN
and/CC
semiconductors/NNS
said/VBD
Motorola/NNP
does/VBZ
n't/RB
expect/VB
the/DT
transaction/NN
to/TO
have/VB
a/DT
material/NN
impact/NN
on/IN
earnings/NNS
./.
Tegal/NNP
,/,
a/DT
Petaluma/NNP
,/,
Calif./NNP
,/,
supplier/NN
to/TO
the/DT
semiconductor/NN
industry/NN
,/,
has/VBZ
annual/JJ
sales/NNS
of/IN
about/IN
$/$
55/CD
million/CD
./.
While/IN
investors/NNS
were/VBD
keeping/VBG
a/DT
close/JJ
eye/NN
on/IN
stock-market/NN
indicators/NNS
yesterday/NN
,/,
securities/NNS
regulators/NNS
focused/VBD
on/IN
Wall/NNP
Street/NNP
's/POS
back/NN
offices/NNS
to/TO
ensure/VB
that/IN
customer/NN
funds/NNS
were/VBD
safe/JJ
./.
Securities/NNS
and/CC
Exchange/NNP
Commission/NNP
officials/NNS
said/VBD
they/PRP
called/VBD
heads/NNS
of/IN
firms/NNS
,/,
traders/NNS
and/CC
other/JJ
brokerage/NN
staffers/NNS
to/TO
make/VB
sure/JJ
the/DT
houses/NNS
had/VBD
enough/JJ
capital/NN
and/CC
back-office/NN
resources/NNS
to/TO
handle/VB
the/DT
crush/NN
of/IN
sell/NN
orders/NNS
during/IN
the/DT
first/JJ
few/JJ
hours/NNS
of/IN
trading/NN
yesterday/NN
./.
``/``
We/PRP
're/VBP
very/RB
concerned/JJ
about/IN
the/DT
financial/JJ
well-being/NN
of/IN
the/DT
firms/NNS
,/,
''/''
said/VBD
Martin/NNP
Kuperberg/NNP
,/,
who/WP
runs/VBZ
the/DT
SEC/NNP
's/POS
New/NNP
York/NNP
broker-dealer/JJ
unit/NN
./.
``/``
We/PRP
've/VBP
spoken/VBN
to/TO
a/DT
number/NN
of/IN
people/NNS
both/DT
at/IN
the/DT
exchanges/NNS
the/DT
firms/NNS
./.
''/''
Meanwhile/RB
,/,
SEC/NNP
officials/NNS
in/IN
Washington/NNP
held/VBD
a/DT
series/NN
of/IN
discussions/NNS
with/IN
officials/NNS
from/IN
the/DT
Treasury/NNP
,/,
the/DT
Federal/NNP
Reserve/NNP
,/,
the/DT
exchanges/NNS
,/,
the/DT
Commodity/NNP
Futures/NNPS
Trading/NNP
Commission/NNP
and/CC
the/DT
Council/NNP
of/IN
Economic/NNP
Advisers/NNPS
to/TO
see/VB
whether/IN
market/NN
mechanisms/NNS
were/VBD
working/VBG
properly/RB
./.
In/IN
his/PRP$
first/JJ
statement/NN
since/IN
the/DT
recent/JJ
market/NN
gyrations/NNS
began/VBD
,/,
Richard/NNP
Breeden/NNP
,/,
who/WP
was/VBD
sworn/VBN
in/RB
as/IN
SEC/NNP
chairman/NN
last/JJ
week/NN
,/,
said/VBD
the/DT
``/``
markets/NNS
'/POS
trading/NN
and/CC
order/NN
routing/NN
systems/NNS
generally/RB
operated/VBD|VBN
quite/RB
smoothly/RB
./.
Today/NN
's/POS
developments/NNS
demonstrate/VBP
the/DT
value/NN
of/IN
the/DT
significant/JJ
improvements/NNS
that/WDT
have/VBP
been/VBN
made/VBN
in/IN
trading/NN
systems/NNS
over/IN
the/DT
past/JJ
two/CD
years/NNS
./.
''/''
Back/JJ
offices/NNS
are/VBP
the/DT
huge/JJ
,/,
behind-the-scenes/JJ
operations/NNS
that/WDT
support/VBP
the/DT
brokerages/NNS
'/POS
sales/NNS
and/CC
trading/NN
departments/NNS
./.
Key/JJ
back-office/NN
functions/NNS
are/VBP
to/TO
organize/VB
and/CC
maintain/VB
securities/NNS
owned/VBN
by/IN
a/DT
firm/NN
and/CC
its/PRP$
customers/NNS
and/CC
to/TO
monitor/VB
the/DT
firm/NN
's/POS
capital/NN
position/NN
./.
The/DT
default/NN
of/IN
several/JJ
Wall/NNP
Street/NNP
houses/NNS
that/WDT
ran/VBD
short/RB
of/IN
liquidity/NN
during/IN
the/DT
1987/CD
crash/NN
is/VBZ
a/DT
fresh/JJ
memory/NN
for/IN
regulators/NNS
and/CC
the/DT
exchanges/NNS
./.
So/RB
the/DT
SEC/NNP
recently/RB
renewed/VBD
its/PRP$
attacks/NNS
on/IN
firms/NNS
that/WDT
violate/VBP
back-office/NN
regulations/NNS
./.
Two/CD
weeks/NNS
ago/RB
,/,
for/IN
example/NN
,/,
the/DT
agency/NN
censured/VBD
Prudential/NNP
Insurance/NNP
Co./NNP
of/IN
America/NNP
's/POS
Prudential-Bache/NNP
Securities/NNPS
Inc./NNP
for/IN
failing/VBG
to/TO
adequately/RB
keep/VB
customers/NNS
'/POS
funds/NNS
./.
The/DT
move/NN
was/VBD
in/IN
part/NN
a/DT
warning/NN
to/TO
firms/NNS
that/IN
the/DT
SEC/NNP
will/MD
try/VB
to/TO
crack/VB
down/RP
on/IN
firms/NNS
if/IN
their/PRP$
back/JJ
offices/NNS
are/VBP
n't/RB
in/IN
order/NN
and/CC
become/VB
a/DT
danger/NN
in/IN
the/DT
event/NN
of/IN
a/DT
major/JJ
market/NN
move/NN
./.
``/``
It/PRP
notifies/VBZ
the/DT
broker-dealer/JJ
community/NN
that/IN
we/PRP
wo/MD
n't/RB
tolerate/VB
this/DT
kind/NN
of/IN
action/NN
,/,
''/''
Mr./NNP
Kuperberg/NNP
said/VBD
./.
Separately/RB
,/,
the/DT
National/NNP
Association/NNP
of/IN
Securities/NNPS
Dealers/NNPS
dispatched/VBD
25/CD
examiners/NNS
into/IN
brokerages/NNS
'/POS
trading/NN
rooms/NNS
to/TO
make/VB
sure/JJ
brokers/NNS
were/VBD
answering/VBG
phones/NNS
and/CC
handling/VBG
customer/NN
orders/NNS
properly/RB
./.
Two/CD
years/NNS
ago/RB
,/,
many/JJ
market/NN
makers/NNS
refused/VBD
to/TO
answer/VB
their/PRP$
phones/NNS
,/,
creating/VBG
frustration/NN
and/CC
losses/NNS
among/IN
investors/NNS
looking/VBG
to/TO
sell/VB
stocks/NNS
./.
``/``
The/DT
market-making/NN
firms/NNS
responded/VBD
pretty/RB
well/RB
,/,
''/''
said/VBD
Joseph/NNP
Hardiman/NNP
,/,
Nasdaq/NNP
president/NN
./.
``/``
We/PRP
've/VBP
had/VBD
little/JJ
to/TO
no/DT
complaints/NNS
./.
''/''
Storage/NNP
Technology/NNP
Corp./NNP
said/VBD
it/PRP
signed/VBD
a/DT
letter/NN
of/IN
intent/NN
to/TO
acquire/VB
M4/NNP
Data/NNP
Inc./NNP
of/IN
Britain/NNP
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Storage/NNP
Technology/NNP
said/VBD
M4/NNP
's/POS
magnetic/JJ
tape/NN
storage/NN
equipment/NN
will/MD
complement/VB
its/PRP$
tape/NN
cartridge/NN
products/NNS
./.
M4/NNP
sells/VBZ
to/TO
the/DT
original/JJ
equipment/NN
manufacturer/NN
market/NN
world-wide/JJ
and/CC
has/VBZ
about/IN
$/$
20/CD
million/CD
in/IN
annual/JJ
sales/NNS
./.
A/DT
Storage/NNP
Technology/NNP
spokesman/NN
said/VBD
the/DT
transaction/NN
should/MD
be/VB
completed/VBN
in/IN
one/CD
to/TO
two/CD
months/NNS
./.
Martha/NNP
O./NNP
Hesse/NNP
,/,
chairman/NN
of/IN
the/DT
Federal/NNP
Energy/NNP
Regulatory/NNP
Commission/NNP
since/IN
1986/CD
,/,
was/VBD
named/VBN
senior/JJ
vice/NN
president/NN
for/IN
corporate/JJ
affairs/NNS
,/,
effective/JJ
about/IN
the/DT
beginning/NN
of/IN
next/JJ
year/NN
./.
The/DT
banking/NN
company/NN
said/VBD
her/PRP$
duties/NNS
will/MD
include/VB
corporate/JJ
advertising/NN
and/CC
investor/NN
relations/NNS
./.
Cleveland/NNP
Museum/NNP
of/IN
Art/NNP
:/:
``/``
American/JJ
Cities/NNS
:/:
The/DT
Artist/NN
's/POS
View/NN
''/''
--/:
Nearly/RB
50/CD
prints/NNS
,/,
drawings/NNS
,/,
paintings/NNS
and/CC
photographs/NNS
dating/VBG
from/IN
the/DT
1850s/NNS
to/TO
the/DT
present/NN
explore/VBP
how/WRB
different/JJ
artists/NNS
have/VBP
interpreted/VBN
the/DT
urban/JJ
scene/NN
./.
Included/VBN
are/VBP
Joseph/NNP
Pennell/NNP
's/POS
lithographs/NNS
of/IN
New/NNP
York/NNP
City/NNP
in/IN
the/DT
1900s/NNS
;/:
six/CD
black-and-white/JJ
photos/NNS
of/IN
Cleveland/NNP
steel/NN
mills/NNS
by/IN
Margaret/NNP
Bourke-White/NNP
;/:
and/CC
Wayne/NNP
Thiebaud/NNP
's/POS
contemporary/JJ
views/NNS
of/IN
San/NNP
Francisco/NNP
./.
11150/CD
East/NNP
Boulevard/NNP
./.
Through/IN
Jan./NNP
7/CD
./.
Pennsylvania/NNP
Academy/NNP
of/IN
the/DT
Fine/NNPS
Arts/NNPS
,/,
Philadelphia/NNP
:/:
``/``
Making/VBG
Their/PRP$
Mark/NN
:/:
Women/NNS
Artists/NNS
Move/VBP
Into/IN
the/DT
Mainstream/NN
1970-85/CD
''/''
--/:
More/JJR
than/IN
160/CD
works/NNS
by/IN
painters/NNS
,/,
sculptors/NNS
and/CC
photographers/NNS
,/,
as/RB
well/RB
as/IN
tapes/NNS
and/CC
documentation/NN
by/IN
33/CD
video/NN
and/CC
performance/NN
artists/NNS
./.
Among/IN
the/DT
artist/NN
represented/VBN
:/:
Laurie/NNP
Anderson/NNP
,/,
Alice/NNP
Aycock/NNP
,/,
Nancy/NNP
Graves/NNP
and/CC
Elizabeth/NNP
Murray/NNP
./.
Broad/NNP
and/CC
Cherry/NNP
Streets/NNP
,/,
Oct./NNP
20Dec/NNP
./.
31/CD
./.
Metropolitan/NNP
Museum/NNP
,/,
New/NNP
York/NNP
:/:
``/``
Gold/NN
of/IN
Africa/NNP
:/:
The/DT
Barbier-Mueller/NNP
Collection/NNP
''/''
showcases/NNS
a/DT
king/NN
's/POS
ransom/NN
of/IN
West/JJ
African/JJ
artifacts/NNS
culled/VBN
from/IN
a/DT
renowned/JJ
Swiss/JJ
collection/NN
./.
The/DT
130/CD
objects/NNS
on/IN
display/NN
range/NN
from/IN
a/DT
whimsical/JJ
bestiary/NN
of/IN
gilded/JJ
sword/NN
ornaments/NNS
to/TO
the/DT
dazzling/JJ
raiment/NN
of/IN
Ghanaian/JJ
rulers/NNS
./.
82nd/JJ

St./NNP
and/CC
Fifth/NNP
Ave/NNP
./.
Through/IN
March/NNP
11/CD
./.
Cavin-Morris/NNP
Gallery/NNP
,/,
New/NNP
York/NNP
:/:
``/``
Gregory/NNP
Van/NNP
Maanen/NNP
''/''
--/:
Many/JJ
of/IN
the/DT
forceful/JJ
,/,
heavily/RB
symbolic/JJ
images/NNS
of/IN
this/DT
self-taught/JJ
artist/NN
were/VBD
partly/RB
inspired/VBN
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his/PRP$
service/NN
in/IN
Vietnam/NNP
,/,
and/CC
carry/VBP
titles/NNS
such/JJ
as/IN
``/``
Death/NN
in/IN
Flight/NN
''/''
and/CC
``/``
Germans/NNS
Are/VBP
Born/VBN
With/IN
Helmet/NN
Shaped/JJ
Skulls/NNS
./.
''/''
100/CD
Hudson/NNP
St./NNP
,/,
Oct./NNP
19-Nov/NNP
./.
25/CD
./.
Joffrey/NNP
Ballet/NNP
:/:
The/DT
company/NN
's/POS
six-week/JJ
Manhattan/NNP
season/NN
features/VBZ
a/DT
pair/NN
of/IN
premieres/NNS
--/:
``/``
Les/FW
Noces/FW
,/,
''/''
Bronislava/NNP
Nijinska/NNP
's/POS
celebrated/JJ
1923/CD
collaboration/NN
with/IN
Stravinsky/NNP
;/:
and/CC
``/``
The/DT
Pantages/NNS
and/CC
the/DT
Palace/NN
Present/NN
TWO-A-DAY/JJ
,/,
''/''
artistic/JJ
director/NN
Gerald/NNP
Arpino/NNP
's/POS
salute/NN
to/TO
vaudeville/NN
./.
Other/JJ
highlights/NNS
include/VBP
the/DT
revival/NN
of/IN
``/``
Trinity/NN
,/,
''/''
Mr./NNP
Arpino/NNP
's/POS
rock-scored/JJ
salute/NN
to/TO
the/DT
Sixties/NNS
,/,
and/CC
,/,
beginning/VBG
Nov./NNP
24/CD
,/,
the/DT
late/JJ
Robert/NNP
Joffrey/NNP
's/POS
version/NN
of/IN
``/``
The/DT
Nutcracker/NN
./.
''/''
City/NNP
Center/NNP
,/,
131/CD
West/NNP
55th/NNP
St./NNP
,/,
Oct./NNP
24-Dec/NNP
./.
2/CD
./.
212/CD
581-7907/CD
./.
San/NNP
Diego/NNP
Opera/NNP
opens/VBZ
its/PRP$
25th/JJ
season/NN
with/IN
Mussorgsky/NNP
's/POS
``/``
Boris/NNP
Godunov/NNP
,/,
''/''
featuring/VBG
five/CD
leading/VBG
singers/NNS
and/CC
a/DT
conductor/NN
from/IN
the/DT
Soviet/NNP
Union/NNP
./.
The/DT
opera/NN
also/RB
opens/VBZ
the/DT
San/NNP
Diego/NNP
Arts/NNPS
Festival/NNP
:/:
Treasures/NNS
of/IN
the/DT
Soviet/NNP
Union/NNP
./.
Bass/NN
Alexander/NNP
Morozov/NNP
of/IN
the/DT
Leningrad/NNP
Kirov/NNP
Opera/NNP
sings/VBZ
the/DT
title/NN
role/NN
;/:
mezzo/NN
soprano/NN
Irina/NNP
Bogacheva/NNP
is/VBZ
the/DT
scheming/VBG
Polish/JJ
princess/NN
Marina/NNP
./.
Civic/NNP
Theatre/NNP
,/,
3rdand/CD

B/NNP
Streets/NNPS
./.
Oct./NNP
21/CD
,/,
24/CD
,/,
27/CD
,/,
29/CD
and/CC
31/CD
./.
619/CD
236-6510/CD
./.
Bel/NN
canto/NN
tenor/NN
Raul/NNP
Gimenez/NNP
makes/VBZ
his/PRP$
U.S./NNP
recital/NN
debut/NN
at/IN
Alice/NNP
Tully/NNP
Hall/NNP
,/,
(/(
Lincoln/NNP
Center/NNP
,/,
65th/JJ
and/CC
Broadway/NNP
Oct./NNP
24/CD
./.
He/PRP
then/RB
heads/VBZ
for/IN
the/DT
Lone/NNP
Star/NNP
State/NNP
to/TO
make/VB
his/PRP$
U.S./NNP
opera/NN
debut/NN
at/IN
the/DT
Dallas/NNP
Opera/NNP
in/IN
``/``
Don/NNP
Pasquale/NNP
./.
''/''
Dec./NNP
7/CD
,/,
10/CD
,/,
13/CD
and/CC
16/CD
./.
Jeff/NNP
Beck/NNP
and/CC
Stevie/NNP
Ray/NNP
Vaughan/NNP
:/:
For/IN
many/JJ
rock/NN
fans/NNS
,/,
this/DT
double/JJ
bill/NN
of/IN
the/DT
rarely/RB
seen/JJ
British/JJ
legend/NN
Beck/NNP
and/CC
Texas/NNP
tornado/NN
Vaughan/NNP
will/MD
spell/VB
guitar/NN
heaven/NN
:/:
Minneapolis/NNS
Northrop/NNP
Memorial/NNP
Auditorium/NNP
Oct./NNP
25/CD
;/:
Milwaukee/NNP
Mecca/NNP
Auditorium/NNP
Oct./NNP
27/CD
;/:
Chicago/NNP
UIC/NNP
Pavillion/NNP
Oct./NNP
28/CD
;/:
St./NNP
Louis/NNP
Fox/NNP
Theatre/NNP
Oct./NNP
29/CD
;/:
Columbus/NNP
,/,
Ohio/NNP
Ohio/NNP
Theatre/NNP
Oct./NNP
31/CD
;/:
Toronto/NNP
Sky/NNP
Dome/NNP
Nov./NNP
2/CD
;/:
Detroit/NNP
Cobo/NNP
Arena/NNP
Nov./NNP
3/CD
;/:
Pittsburgh/NNP
Palumbo/NNP
Center/NNP
Nov./NNP
4/CD
;/:
Landover/NNP
,/,
Md/NNP
./.
Capitol/NNP
Centre/NNP
Nov./NNP
6/CD
;/:
Philadelphia/NNP
Spectrum/NNP
Nov./NNP
7/CD
;/:
Worcester/NNP
,/,
Mass/NNP
./.
Centrum/NNP
Nov./NNP
8/CD
;/:
Manhattan/NNP
Madison/NNP
Square/NNP
Garden/NNP
Nov./NNP
11/CD
;/:
Cleveland/NNP
Public/NNP
Hall/NNP
Nov./NNP
14/CD
;/:
Dayton/NNP
,/,
Ohio/NNP
Hara/NNP
Arena/NNP
Nov./NNP
15/CD
;/:
Louisville/NNP
,/,
Ky/NNP
./.
Louisville/NNP
Gardens/NNPS
Nov./NNP
16/CD
;/:
Birmingham/NNP
,/,
Ala/NNP
./.
Boutwell/NNP
Auditorium/NNP
Nov./NNP
18/CD
;/:
Atlanta/NNP
Omni/NNP
Nov./NNP
19/CD
;/:
Miami/NNP
The/NNP
Arena/NNP
Nov./NNP
21/CD
;/:
Tampa/NNP
Sundome/NNP
Nov./NNP
22/CD
;/:
Houston/NNP
Sam/NNP
Houston/NNP
Arena/NNP
Nov./NNP
24/CD
;/:
Dallas/NNP
State/NNP
Fair/NNP
Coliseum/NNP
Nov./NNP
25/CD
;/:
Austin/NNP
Frank/NNP
Irwin/NNP
Center/NNP
Nov./NNP
26/CD
;/:
Albuquerque/NNP
,/,
N.M/NNP
./.
Tingley/NNP
Arena/NNP
Nov./NNP
28/CD
;/:
Denver/NNP
McNichols/NNP
Arena/NNP
Nov./NNP
29/CD
;/:
Los/NNP
Angeles/NNP
Sports/NNPS
Arena/NNP
Dec./NNP
1/CD
;/:
Oakland/NNP
,/,
Calif/NNP
./.
Oakland/NNP
Coliseum/NNP
Dec./NNP
3/CD
./.
Being/VBG
the/DT
No./NN
2/CD
newspaper/NN
in/IN
town/NN
just/RB
got/VBD
tougher/RBR
./.
The/DT
Dallas/NNP
Morning/NNP
News/NNP
,/,
the/DT
No./NN
1/CD
paper/NN
in/IN
town/NN
,/,
has/VBZ
secured/VBN
exclusive/JJ
rights/NNS
here/RB
to/TO
Universal/NNP
Press/NNP
Syndicate/NNP
's/POS
features/NNS
,/,
including/VBG
26/CD
previously/RB
carried/VBN
by/IN
its/PRP$
struggling/JJ
rival/NN
,/,
the/DT
Dallas/NNP
Times/NNP
Herald/NNP
./.
The/DT
News/NNP
agreed/VBD
to/TO
pay/VB
a/DT
minimum/NN
of/IN
$/$
100,000/CD
annually/RB
for/IN
five/CD
years/NNS
for/IN
the/DT
features/NNS
,/,
and/CC
an/DT
unusual/JJ
$/$
500,000/CD
fee/NN
,/,
mostly/RB
up/RB
front/RB
,/,
to/TO
keep/VB
all/DT
current/JJ
and/CC
future/JJ
Universal/NNP
offerings/NNS
for/IN
itself/PRP
in/IN
the/DT
Dallas/NNP
area/NN
./.
The/DT
move/NN
was/VBD
a/DT
stunning/JJ
coup/NN
,/,
nabbing/VBG
some/DT
of/IN
the/DT
Times/NNP
Herald/NNP
's/POS
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draws/NNS
,/,
including/VBG
``/``
Dear/NNP
Abby/NNP
,/,
''/''
``/``
Doonesbury/NNP
,/,
''/''
Erma/NNP
Bombeck/NNP
's/POS
column/NN
and/CC
``/``
The/DT
Far/NNP
Side/NNP
./.
''/''
It/PRP
also/RB
reignited/VBD
a/DT
long-running/JJ
newspaper/NN
war/NN
that/WDT
had/VBD
cooled/VBN
last/JJ
year/NN
after/IN
closely/RB
held/JJ
DTH/NNP
Media/NNP
Inc./NNP
bought/VBD
the/DT
Times/NNP
Herald/NNP
./.
Universal/NNP
argues/VBZ
that/IN
special/JJ
circumstances/NNS
led/VBD
to/TO
the/DT
agreement/NN
./.
But/CC
if/IN
the/DT
syndicate/NN
's/POS
contract/NN
with/IN
the/DT
Morning/NNP
News/NNP
survives/VBZ
the/DT
Times/NNP
Herald/NNP
's/POS
court/NN
challenge/NN
,/,
other/JJ
second-place/JJ
newspapers/NNS
worry/VBP
that/IN
they/PRP
,/,
too/RB
,/,
may/MD
see/VB
their/PRP$
best/JJS
features/NNS
snatched/VBN
away/RB
by/IN
bigger/JJR
,/,
wealthier/JJR
rivals/NNS
./.
``/``
We/PRP
're/VBP
very/RB
concerned/JJ
,/,
''/''
says/VBZ
Tom/NNP
King/NNP
,/,
the/DT
editor/NN
and/CC
president/NN
of/IN
the/DT
El/NNP
Paso/NNP
Herald-Post/NNP
,/,
a/DT
Scripps/NNP
Howard/NNP
newspaper/NN
that/WDT
competes/VBZ
with/IN
a/DT
Gannett/NNP
Corp./NNP
paper/NN
./.
``/``
It/PRP
certainly/RB
looks/VBZ
like/IN
it/PRP
could/MD
lead/VB
to/TO
bidding/NN
wars/NNS
./.
''/''
One/CD
effect/NN
,/,
syndicate/NN
executives/NNS
say/VBP
,/,
is/VBZ
that/IN
some/DT
newspapers/NNS
in/IN
competing/VBG
markets/NNS
are/VBP
considering/VBG
seeking/VBG
long-term/JJ
contracts/NNS
for/IN
their/PRP$
favorite/JJ
features/NNS
instead/RB
of/IN
the/DT
usual/JJ
pacts/NNS
that/WDT
let/VBP
the/DT
syndicate/NN
cancel/NN
with/IN
30/CD
to/TO
90/CD
days/NNS
'/POS
notice/NN
./.
For/IN
smaller/JJR
newspapers/NNS
,/,
syndicated/JJ
features/NNS
can/MD
be/VB
crucial/JJ
./.
Industry/NN
executives/NNS
say/VBP
the/DT
columns/NNS
and/CC
cartoons/NNS
give/VBP
newspapers/NNS
consistency/NN
and/CC
build/VBP
fierce/JJ
reader/NN
loyalty/NN
./.
``/``
I/PRP
have/VBP
people/NNS
tell/VB
me/PRP
that/IN
Garfield/NNP
is/VBZ
the/DT
only/JJ
reason/NN
they/PRP
read/VBP
the/DT
Arkansas/NNP
Walter/NNP
E./NNP
Hussman/NNP
,/,
the/DT
publisher/NN
of/IN
the/DT
competing/VBG
Arkansas/NNP
Democrat/NNP
./.
Syndicates/NNS
have/VBP
traditionally/RB
turned/VBN
down/RP
fatter/JJR
fees/NNS
from/IN
competitors/NNS
,/,
switching/VBG
only/RB
when/WRB
a/DT
newspaper/NN
dropped/VBD
a/DT
feature/NN
or/CC
some/DT
unusual/JJ
ownership/NN
change/NN
occurred/VBD
./.
In/IN
1984/CD
,/,
the/DT
Boston/NNP
Herald/NNP
stole/VBD
about/IN
10/CD
features/NNS
from/IN
the/DT
bigger/JJR
Boston/NNP
Globe/NNP
,/,
but/CC
only/RB
after/IN
the/DT
Herald/NNP
's/POS
owner/NN
,/,
Rupert/NNP
Murdoch/NNP
,/,
bought/VBD
the/DT
features/NNS
'/POS
syndicator/NN
./.
In/IN
1977/CD
,/,
Universal/NNP
pulled/VBD
its/PRP$
features/NNS
from/IN
the/DT
now-defunct/JJ
Philadelphia/NNP
Bulletin/NNP
because/IN
of/IN
a/DT
contract/NN
dispute/NN
and/CC
because/IN
``/``
there/EX
was/VBD
no/DT
growth/NN
there/RB
Universal/NNP
,/,
''/''
says/VBZ
John/NNP
McMeel/NNP
,/,
president/NN
and/CC
co-owner/NN
of/IN
Universal/NNP
./.
Growth/NN
was/VBD
also/RB
a/DT
consideration/NN
in/IN
Dallas/NNP
./.
The/DT
Times/NNP
Herald/NNP
's/POS
circulation/NN
had/VBD
been/VBN
slipping/VBG
for/IN
several/JJ
years/NNS
,/,
and/CC
its/PRP$
audited/VBN
daily/JJ
circulation/NN
now/RB
stands/VBZ
at/IN
222,000/CD
,/,
compared/VBN
with/IN
the/DT
Morning/NNP
News/NNP
's/POS
370,000/CD
./.
But/CC
the/DT
main/JJ
reason/NN
for/IN
the/DT
move/NN
,/,
Mr./NNP
McMeel/NNP
says/VBZ
,/,
is/VBZ
a/DT
joint/JJ
venture/NN
between/IN
Universal/NNP
and/CC
A.H./NNP
Belo/NNP
Corp./NNP
,/,
the/DT
Morning/NNP
News/NNP
's/POS
parent/NN
and/CC
the/DT
owner/NN
of/IN
five/CD
television/NN
stations/NNS
./.
Plans/NNS
call/VBP
for/IN
the/DT
two/CD
to/TO
explore/VB
TV/NN
programming/NN
drawn/VBN
from/IN
the/DT
syndicate/NN
's/POS
and/CC
others/NNS
'/POS
characters/NNS
,/,
as/RB
well/RB
as/IN
to/TO
develop/VB
TV/NN
ads/NNS
for/IN
newspapers/NNS
using/VBG
Universal/NNP
's/POS
characters/NNS
./.
Universal/JJ
says/VBZ
that/IN
it/PRP
wanted/VBD
all/DT
its/PRP$
creators/NNS
to/TO
share/VB
in/IN
the/DT
television/NN
venture/NN
and/CC
Belo/NNP
would/MD
n't/RB
promote/VB
features/NNS
appearing/VBG
in/IN
its/PRP$
competition/NN
./.
Belo/NNP
declined/VBD
comment/NN
,/,
citing/VBG
the/DT
litigation/NN
./.
The/DT
Times/NNP
Herald/NNP
charges/VBZ
that/IN
the/DT
venture/NN
is/VBZ
a/DT
smokescreen/NN
,/,
created/VBN
to/TO
hide/VB
the/DT
News/NNP
's/POS
plan/NN
to/TO
buy/VB
the/DT
features/NNS
away/RB
./.
``/``
We/PRP
're/VBP
very/RB
skeptical/JJ
of/IN
a/DT
venture/NN
in/IN
which/WDT
no/DT
one/NN
has/VBZ
invested/VBN
a/DT
dollar/NN
,/,
in/IN
which/WDT
no/DT
one/NN
has/VBZ
any/DT
experience/NN
in/IN
syndicating/VBG
animated/JJ
features/NNS
and/CC
game/NN
shows/NNS
and/CC
for/IN
which/WDT
there/EX
was/VBD
not/RB
prior/JJ
{/(
market/NN
research/NN
,/,
''/''
says/VBZ
Roy/NNP
E./NNP
Bode/NNP
,/,
the/DT
Times/NNP
Herald/NNP
's/POS
editor/NN
./.
Some/DT
syndicate/NN
executives/NNS
apparently/RB
prefer/VBP
not/RB
to/TO
discuss/VB
the/DT
episode/NN
in/IN
public/NN
./.
Willard/NNP
Colston/NNP
,/,
chairman/NN
of/IN
the/DT
Los/NNP
Angeles/NNP
Times/NNP
Syndicate/NNP
and/CC
program/NN
director/NN
of/IN
the/DT
National/NNP
Features/NNPS
Council/NNP
,/,
wanted/VBD
the/DT
group/NN
to/TO
sponsor/VB
a/DT
panel/NN
discussion/NN
on/IN
the/DT
pact/NN
at/IN
its/PRP$
annual/JJ
meeting/NN
in/IN
Dallas/NNP
last/JJ
week/NN
./.
Initially/RB
a/DT
majority/NN
of/IN
the/DT
directors/NNS
,/,
made/VBD
up/RP
of/IN
syndicate/NN
executives/NNS
,/,
editors/NNS
,/,
cartoonists/NNS
and/CC
columnists/NNS
,/,
supported/VBD
the/DT
idea/NN
./.
But/CC
Universal/NNP
's/POS
Mr./NNP
McMeel/NNP
,/,
the/DT
council/NN
's/POS
president/NN
,/,
asked/VBD
directors/NNS
to/TO
reconsider/VB
,/,
and/CC
they/PRP
voted/VBD
down/RP
the/DT
discussion/NN
13-12/CD
,/,
Mr./NNP
Colston/NNP
says/VBZ
./.
Meanwhile/RB
,/,
the/DT
Times/NNP
Herald/NNP
is/VBZ
just/RB
hoping/VBG
to/TO
survive/VB
this/DT
latest/JJS
blow/NN
./.
A/DT
Houston/NNP
state/NN
district/NN
judge/NN
refused/VBD
to/TO
enjoin/VB
the/DT
syndicate/NN
from/IN
moving/VBG
the/DT
features/NNS
,/,
and/CC
the/DT
Morning/NNP
News/NNP
began/VBD
running/VBG
most/JJS
of/IN
them/PRP
a/DT
few/JJ
weeks/NNS
ago/RB
./.
A/DT
trial/NN
on/IN
breach/NN
of/IN
contract/NN
and/CC
antitrust/JJ
charges/NNS
is/VBZ
n't/RB
expected/VBN
for/IN
a/DT
few/JJ
months/NNS
./.
Mr./NNP
Bode/NNP
acknowledges/VBZ
that/IN
some/DT
subscriptions/NNS
have/VBP
been/VBN
canceled/VBN
./.
The/DT
Universal-Morning/NNP
News/NNP
deal/NN
also/RB
troubles/VBZ
syndicated/JJ
writers/NNS
and/CC
artists/NNS
,/,
who/WP
fear/VBP
that/IN
they/PRP
wo/MD
n't/RB
get/VB
their/PRP$
cut/NN
from/IN
this/DT
new/JJ
type/NN
of/IN
exclusivity/NN
payment/NN
./.
Creators/NNS
of/IN
syndicated/JJ
features/NNS
generally/RB
receive/VBP
about/IN
half/PDT
the/DT
fee/NN
a/DT
newspaper/NN
pays/VBZ
for/IN
their/PRP$
work/NN
./.
Mr./NNP
McMeel/NNP
says/VBZ
some/DT
of/IN
the/DT
exclusivity/NN
payment/NN
fee/NN
will/MD
be/VB
used/VBN
for/IN
future/JJ
development/NN
of/IN
features/NNS
and/CC
promises/VBZ
that/IN
those/DT
whose/WP$
work/NN
appears/VBZ
in/IN
the/DT
Morning/NNP
News/NNP
will/MD
see/VB
``/``
substantial/JJ
immediate/JJ
increases/NNS
''/''
in/IN
pay/NN
./.
But/CC
he/PRP
concedes/VBZ
that/IN
they/PRP
have/VBP
n't/RB
been/VBN
notified/VBN
yet/RB
./.
The/DT
uncertainty/NN
already/RB
has/VBZ
some/DT
in/IN
the/DT
business/NN
plotting/VBG
new/JJ
strategy/NN
./.
Arnold/NNP
Schwartzman/NNP
,/,
a/DT
Dayton/NNP
,/,
Ohio/NNP
,/,
lawyer/NN
who/WP
has/VBZ
represented/VBN
about/IN
50/CD
writers/NNS
and/CC
artists/NNS
,/,
says/VBZ
that/IN
any/DT
new/JJ
contract/NN
or/CC
renewal/NN
he/PRP
negotiates/VBZ
will/MD
require/VB
that/IN
special/JJ
payments/NNS
be/VB
shared/VBN
with/IN
his/PRP$
clients/NNS
./.
``/``
It/PRP
's/VBZ
not/RB
something/NN
I/PRP
'm/VBP
considering/VBG
;/:
it/PRP
'll/MD
become/VB
part/NN
of/IN
my/PRP$
boilerplate/NN
,/,
''/''
he/PRP
says/VBZ
./.
Insurance-industry/NN
consultant/NN
Benjamin/NNP
Zycher/NNP
's/POS
attack/NN
on/IN
Proposition/NN
103/CD
,/,
the/DT
landmark/NN
insurance-reform/NN
initiative/NN
approved/VBN
by/IN
Californians/NNPS
last/JJ
November/NNP
``/``
Insurance/NN
Fraud/NN
,/,
California/NNP
Style/NN
,/,
''/''
Oct./NNP
9/CD
the/DT
industry/NN
's/POS
unsuccessful/JJ
$/$
80/CD
million/CD
campaign/NN
against/IN
the/DT
measure/NN
:/:
distorted/JJ
and/CC
often/RB
dishonest/JJ
./.
Prop/NN
103/CD
eliminates/VBZ
many/JJ
barriers/NNS
to/TO
competition/NN
in/IN
the/DT
industry/NN
,/,
including/VBG
the/DT
insurers/NNS
'/POS
unjustified/JJ
exemption/NN
from/IN
the/DT
antitrust/JJ
laws/NNS
./.
Insurers/NNS
are/VBP
permitted/VBN
to/TO
share/VB
some/DT
historical-claims/NNS
data/NNS
in/IN
order/IN
to/TO
enhance/VB
the/DT
competitiveness/NN
of/IN
small/JJ
companies/NNS
./.
Mr./NNP
Zycher/NNP
says/VBZ
the/DT
industry/NN
does/VBZ
n't/RB
need/VB
the/DT
exemption/NN
;/:
if/IN
that/DT
's/VBZ
so/RB
,/,
why/WRB
do/VBP
its/PRP$
lobbyists/NNS
so/RB
bitterly/RB
oppose/VB
state/NN
and/CC
federal/JJ
efforts/NNS
to/TO
eliminate/VB
it/PRP
?/.
Mr./NNP
Zycher/NNP
also/RB
criticizes/VBZ
103/CD
's/POS
requirement/NN
that/IN
auto-insurance/NN
rates/NNS
be/VB
based/VBN
primarily/RB
on/IN
a/DT
motorist/NN
's/POS
safety/NN
record/NN
and/CC
driving/NN
habits/NNS
rather/RB
than/IN
upon/IN
zip/NN
code/NN
./.
Proposition/NN
103/CD
does/VBZ
not/RB
prohibit/VB
any/DT
use/NN
of/IN
territorial/NN
rating/NN
,/,
but/CC
requires/VBZ
insurers/NNS
to/TO
justify/VB
it/PRP
scientifically/RB
./.
So/RB
far/RB
,/,
they/PRP
've/VBP
been/VBN
unable/JJ
to/TO
do/VB
so/RB
./.
The/DT
most/RBS
controversial/JJ
provision/NN
of/IN
103/CD
requires/VBZ
a/DT
20/CD
%/NN
rollback/NN
in/IN
all/DT
auto/NN
,/,
home/NN
and/CC
business/NN
liability/NN
premiums/NNS
to/TO
offset/VB
excessive/JJ
rates/NNS
--/:
the/DT
product/NN
of/IN
years/NNS
of/IN
lax/JJ
regulation/NN
and/CC
insulation/NN
from/IN
competition/NN
./.
Mr./NNP
Zycher/NNP
quotes/VBZ
me/PRP
as/IN
saying/VBG
something/NN
I/PRP
never/RB
said/VBD
--/:
that/IN
the/DT
20/CD
%/NN
figure/NN
was/VBD
arbitrary/JJ
and/CC
hence/RB
the/DT
rollback/NN
unjustified/JJ
./.
In/IN
fact/NN
,/,
simply/RB
using/VBG
the/DT
insurers/NNS
own/JJ
self-serving/JJ
profitability/NN
standards/NNS
,/,
the/DT
California/NNP
Insurance/NNP
Commissioner/NNP
--/:
an/DT
opponent/NN
of/IN
103/CD
--/:
has/VBZ
already/RB
called/VBN
for/IN
more/JJR
than/IN
$/$
800/CD
million/CD
in/IN
rollbacks/NNS
./.
Hearings/NNS
to/TO
begin/VB
this/DT
month/NN
will/MD
allow/VB
us/PRP
to/TO
introduce/VB
evidence/NN
of/IN
the/DT
industry/NN
's/POS
inflated/JJ
reserves/NNS
,/,
excess/JJ
surplus/NN
,/,
gross/JJ
waste/NN
and/CC
inefficiency/NN
that/WDT
will/MD
justify/VB
more/JJR
than/IN
a/DT
20/CD
%/NN
rollback/NN
./.
Insurance-reform/NN
efforts/NNS
are/VBP
under/IN
way/NN
in/IN
35/CD
states/NNS
./.
Like/IN
Mr./NNP
Zycher/NNP
,/,
the/DT
industry/NN
's/POS
response/NN
is/VBZ
to/TO
make/VB
war/NN
against/IN
the/DT
reformers/NNS
./.
But/CC
until/IN
the/DT
industry/NN
acknowledges/VBZ
the/DT
reality/NN
that/DT
reform/NN
is/VBZ
necessary/JJ
,/,
it/PRP
will/MD
remain/VB
its/PRP$
own/JJ
worst/JJS
enemy/NN
./.
Harvey/NNP
Rosenfield/NNP
Voter/NN
Revolt/NN
Los/NNP
Angeles/NNP
The/DT
nine/CD
major/JJ
domestic/JJ
auto/NN
makers/NNS
plan/VBP
to/TO
build/VB
10.4/CD
%/JJ
fewer/JJR
cars/NNS
in/IN
this/DT
year/NN
's/POS
fourth/JJ
quarter/NN
than/IN
they/PRP
built/VBD
a/DT
year/NN
ago/RB
,/,
with/IN
the/JJ
Big/NNP
Three/CD
accounting/NN
for/IN
nearly/RB
all/DT
of/IN
the/DT
decline/NN
./.
Continuing/VBG
a/DT
trend/NN
that/WDT
is/VBZ
putting/VBG
intense/JJ
pressure/NN
on/IN
General/NNP
Motors/NNPS
Corp./NNP
,/,
Ford/NNP
Motor/NNP
Co./NNP
and/CC
Chrysler/NNP
Corp./NNP
,/,
output/NN
at/IN
Japanese-owned/JJ
and/CC
managed/JJ
plants/NNS
will/MD
rise/VB
42/CD
%/NN
from/IN
year-earlier/JJ
levels/NNS
to/TO
an/DT
estimated/VBN
296,187/CD
cars/NNS
./.
Production/NN
at/IN
Big/JJ
Three/CD
plants/NNS
is/VBZ
forecast/VBN
to/TO
fall/VB
17/CD
%/NN
to/TO
1,402,000/CD
cars/NNS
./.
Some/DT
of/IN
the/DT
decline/NN
at/IN
the/DT
Big/JJ
Three/CD
is/VBZ
production/NN
shifted/VBN
to/TO
the/DT
``/``
transplants/NNS
''/''
:/:
Diamond-Star/NNP
Motors/NNPS
Corp./NNP
builds/VBZ
cars/NNS
sold/VBN
by/IN
Chrysler/NNP
as/RB
well/RB
as/IN
Mitsubishi/NNP
Motors/NNPS
Corp/NNP
./.
Mazda/NNP
Motor/NNP
Corp./NNP
's/POS
U.S./NNP
plant/NN
builds/VBZ
cars/NNS
for/IN
its/PRP$
own/JJ
and/CC
Ford/NNP
dealers/NNS
./.
New/NNP
United/NNP
Motor/NNP
Manufacturing/NNP
Inc./NNP
supplies/VBZ
GM/NNP
's/POS
Chevrolet/NNP
and/CC
Toyota/NNP
Motor/NNP
Corp./NNP
's/POS
U.S./NNP
dealer/NN
networks/NNS
./.
The/DT
only/JJ
transplants/NNS
to/TO
drop/VB
below/IN
1988/CD
levels/NNS
are/VBP
owned/VBN
by/IN
Mazda/NNP
and/CC
Honda/NNP
Motor/NNP
Co/NNP
./.
Part/NN
of/IN
the/DT
Mazda/NNP
decline/NN
reflects/VBZ
``/``
trying/VBG
to/TO
anticipate/VB
what/WP
sales/NNS
''/''
are/VBP
going/VBG
to/TO
be/VB
,/,
said/VBD
a/DT
spokesman/NN
./.
Mazda/NNP
also/RB
is/VBZ
adding/VBG
the/DT
Mazda/NNP
626/CD
car/NN
at/IN
its/PRP$
Flat/NNP
Rock/NNP
,/,
Mich./NNP
,/,
plant/NN
,/,
slowing/VBG
output/NN
./.
Honda/NNP
is/VBZ
accelerating/VBG
production/NN
after/IN
retooling/VBG
its/PRP$
Marysville/NNP
,/,
Ohio/NNP
,/,
plant/NN
to/TO
build/VB
the/DT
redesigned/VBN
Accord/NNP
./.
The/DT
overall/JJ
decline/NN
in/IN
car/NN
production/NN
is/VBZ
matched/VBN
by/IN
an/DT
almost/RB
equal/JJ
drop/NN
of/IN
10.6/CD
%/NN
in/IN
expected/JJ
truck/NN
output/NN
at/IN
GM/NNP
,/,
Ford/NNP
,/,
Chrysler/NNP
and/CC
Nissan/NNP
Motor/NNP
Corp/NNP
./.
Car/NN
and/CC
truck/NN
sales/NNS
are/VBP
expected/VBN
to/TO
soften/VB
during/IN
the/DT
remainder/NN
of/IN
the/DT
year/NN
from/IN
unusually/RB
high/JJ
,/,
incentive-buoyed/JJ
levels/NNS
in/IN
August/NNP
and/CC
September/NNP
./.
``/``
None/NN
of/IN
it/PRP
is/VBZ
a/DT
surprise/NN
,/,
''/''
said/VBD
Edward/NNP
Sullivan/NNP
,/,
vice/NN
president/NN
of/IN
automotive/JJ
consulting/NN
at/IN
the/DT
WEFA/NNP
Group/NNP
,/,
a/DT
market/NN
analysis/NN
firm/NN
in/IN
Bala/NNP
Cynwyd/NNP
,/,
Pa/NNP
./.
``/``
Strong/JJ
third-quarter/JJ
sales/NNS
stole/VBD
from/IN
fourth-quarter/JJ
sales/NNS
./.
''/''
He/PRP
said/VBD
schedules/NNS
at/IN
GM/NNP
,/,
in/IN
particular/JJ
,/,
are/VBP
still/RB
too/RB
high/RB
given/VBN
market/NN
expectations/NNS
,/,
which/WDT
will/MD
likely/RB
mean/VB
some/DT
trimming/NN
./.
But/CC
``/``
if/IN
the/DT
cuts/NNS
are/VBP
going/VBG
to/TO
come/VB
,/,
they/PRP
'll/MD
have/VB
to/TO
come/VB
pretty/RB
soon/RB
,/,
''/''
he/PRP
added/VBD
./.
``/``
Once/RB
you/PRP
get/VBP
into/IN
November/NNP
there/EX
's/VBZ
not/RB
a/DT
whole/JJ
lot/NN
of/IN
flexibility/NN
./.
''/''
The/DT
recent/JJ
gyrations/NNS
in/IN
the/DT
stock/NN
market/NN
did/VBD
n't/RB
have/VB
any/DT
immediate/JJ
impact/NN
on/IN
the/DT
auto/NN
makers/NNS
'/POS
schedules/NNS
./.
``/``
Based/VBN
on/IN
the/DT
minimal/JJ
impact/NN
that/IN
the/DT
1987/CD
event/NN
had/VBN
on/IN
car/NN
sales/NNS
,/,
this/DT
little/JJ
hiccup/NN
is/VBZ
unlikely/JJ
to/TO
have/VB
any/DT
influence/NN
,/,
''/''
said/VBD
a/DT
Ford/NNP
spokesman/NN
./.
Here/RB
are/VBP
industry/NN
forecasts/NNS
for/IN
the/DT
fourth/JJ
quarter/NN
:/:
Much/JJ
of/IN
the/DT
difference/NN
in/IN
Chrysler/NNP
's/POS
car/NN
output/NN
compared/VBN
with/IN
a/DT
year/NN
ago/RB
comes/VBZ
from/IN
having/VBG
two/CD
fewer/JJR
plants/NNS
;/:
Chrysler/NNP
's/POS
now-shuttered/JJ
facilities/NNS
in/IN
Kenosha/NNP
,/,
Wis./NNP
,/,
turned/VBD
out/RP
51,000/CD
subcompacts/NNS
and/CC
mid-size/JJ
cars/NNS
in/IN
the/DT
1988/CD
fourth-quarter/NN
before/IN
it/PRP
closed/VBD
in/IN
December/NNP
./.
More/JJR
than/IN
half/PDT
the/DT
decline/NN
in/IN
Ford/NNP
's/POS
expected/JJ
car/NN
output/NN
comes/VBZ
from/IN
closing/VBG
its/PRP$
Escort/NNP
plant/NN
in/IN
Wayne/NNP
,/,
Mich./NNP
,/,
as/IN
of/IN
Nov./NNP
22/CD
to/TO
prepare/VB
for/IN
production/NN
of/IN
the/DT
next/JJ
generation/NN
of/IN
the/DT
popular/JJ
subcompact/NN
./.
The/DT
plant/NN
wo/MD
n't/RB
reopen/VB
until/IN
late/JJ
February/NNP
or/CC
early/JJ
March/NNP
,/,
the/DT
company/NN
spokesman/NN
said/VBD
./.
The/DT
lower/JJR
output/NN
will/MD
likely/RB
mean/VB
the/DT
subcompacts/NNS
will/MD
lose/VB
for/IN
the/DT
first/JJ
time/NN
since/IN
the/DT
1985/CD
model/NN
year/NN
their/PRP$
distinction/NN
as/IN
the/DT
best-selling/JJS
car/NN
in/IN
the/DT
U.S/NNP
./.
Honda/NNP
's/POS
Accord/NNP
,/,
made/VBN
in/IN
the/DT
U.S./NNP
and/CC
Japan/NNP
,/,
was/VBD
a/DT
close/JJ
second/NN
to/TO
Escort/NNP
in/IN
the/DT
just-ended/JJ
1989/CD
model/NN
year/NN
./.
If/IN
Accord/NNP
were/VBD
to/TO
top/VB
the/DT
list/NN
in/IN
1990/CD
,/,
it/PRP
would/MD
be/VB
the/DT
first/JJ
vehicle/NN
from/IN
a/DT
foreign/JJ
auto/NN
maker/NN
ever/RB
to/TO
hold/VB
that/DT
spot/NN
./.
BRIDGEPORT/NNP
,/,
Conn./NNP
Christopher/NNP
Kimball/NNP
,/,
founder/NN
,/,
president/NN
and/CC
publisher/NN
of/IN
Cook/NNP
's/POS
magazine/NN
,/,
said/VBD
he/PRP
is/VBZ
leaving/VBG
the/DT
magazine/NN
by/IN
year/NN
end/NN
to/TO
launch/VB
a/DT
new/JJ
men/NNS
's/POS
consumer/NN
magazine/NN
./.
The/DT
new/JJ
magazine/NN
,/,
whose/WP$
name/NN
Mr./NNP
Kimball/NNP
wo/MD
n't/RB
reveal/VB
,/,
will/MD
be/VB
a/DT
service/NN
magazine/NN
``/``
at/IN
its/PRP$
core/NN
,/,
''/''
covering/VBG
subjects/NNS
such/JJ
as/IN
health/NN
,/,
clothing/NN
,/,
food/NN
,/,
travel/NN
and/CC
gifts/NNS
for/IN
women/NNS
./.
Mr./NNP
Kimball/NNP
said/VBD
he/PRP
will/MD
launch/VB
the/DT
magazine/NN
as/IN
a/DT
bi-monthly/JJ
in/IN
September/NNP
1990/CD
with/IN
250,000/CD
circulation/NN
./.
Mr./NNP
Kimball/NNP
said/VBD
he/PRP
will/MD
be/VB
a/DT
partner/NN
in/IN
the/DT
magazine/NN
with/IN
an/DT
``/``
experienced/JJ
''/''
editor/NN
,/,
whose/WP$
name/NN
will/MD
be/VB
revealed/VBN
later/RB
./.
Mr./NNP
Kimball/NNP
started/VBD
Cook/NNP
's/POS
,/,
a/DT
glossy/JJ
epicurean/NN
magazine/NN
,/,
in/IN
1979/CD
and/CC
it/PRP
was/VBD
purchased/VBN
in/IN
1983/CD
by/IN
the/DT
New/NNP
Yorker/NNP
Magazine/NNP
./.
The/DT
New/NNP
Yorker/NNP
's/POS
parent/NN
,/,
Advance/NNP
Publications/NNPS
Inc./NNP
,/,
sold/VBD
it/PRP
to/TO
Sweden/NNP
's/POS
Bonnier/NNP
Magazine/NNP
Group/NNP
in/IN
1986/CD
./.
The/DT
magazine/NN
is/VBZ
now/RB
published/VBN
by/IN
Pennington/NNP
Publishing/NNP
,/,
a/DT
subsidiary/NN
of/IN
Bonnier/NNP
based/VBN
in/IN
Bridgeport/NNP
,/,
Conn/NNP
./.
It/PRP
has/VBZ
200,000/CD
circulation/NN
./.
As/IN
stocks/NNS
recovered/VBD
,/,
the/DT
U.S./NNP
dollar/NN
rebounded/VBD
,/,
but/CC
bond/NN
prices/NNS
plunged/VBD
and/CC
Treasury/NNP
bill/NN
rates/NNS
soared/VBD
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
's/POS
88.12-point/JJ
bounce/NN
back/RB
from/IN
Friday/NNP
's/POS
190-point/JJ
dive/NN
helped/VBD
calm/VB
investor/NN
fears/NNS
of/IN
a/DT
financial/JJ
Armageddon/NN
./.
However/RB
,/,
gold/JJ
prices/NNS
rose/VBD
despite/IN
the/DT
dollar/NN
's/POS
resilience/NN
,/,
reflecting/VBG
continued/JJ
nervousness/NN
about/IN
the/DT
markets/NNS
'/POS
manic/JJ
behavior/NN
./.
Early/RB
yesterday/RB
,/,
strategists/NNS
at/IN
several/JJ
investment/NN
firms/NNS
,/,
including/VBG
Merrill/NNP
Lynch/NNP
and/CC
Dean/NNP
Witter/NNP
Reynolds/NNP
,/,
urged/VBD
customers/NNS
to/TO
buy/VB
stocks/NNS
and/CC
cut/VB
back/RB
on/IN
bonds/NNS
./.
Treasury/NNP
bond/NN
prices/NNS
dropped/VBD
the/DT
most/JJS
for/IN
any/DT
single/JJ
day/NN
in/IN
more/JJR
than/IN
two/CD
months/NNS
./.
The/DT
30-year/JJ
bond/NN
lost/VBD
1/CD
3\/4/CD
points/NNS
,/,
or/CC
$/$
17.50/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
./.
Treasury/NNP
bill/NN
rates/NNS
,/,
which/WDT
fell/VBD
nearly/RB
three-quarters/NNS
of/IN
a/DT
percentage/NN
point/NN
Friday/NNP
as/IN
investors/NNS
sought/VBD
a/DT
safe/JJ
haven/NN
from/IN
plunging/VBG
stocks/NNS
,/,
jumped/VBD
more/JJR
than/IN
half/PDT
a/DT
percentage/NN
point/NN
yesterday/NN
./.
``/``
Investors/NNS
had/VBD
expected/VBN
the/DT
worst/JJS
from/IN
the/DT
stock/NN
market/NN
,/,
and/CC
so/IN
they/PRP
piled/VBD
into/IN
government/NN
bonds/NNS
last/JJ
Friday/NNP
,/,
''/''
said/VBD
Steven/NNP
Einhorn/NNP
,/,
chairman/NN
of/IN
the/DT
investment/NN
policy/NN
committee/NN
at/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
./.
``/``
But/CC
when/WRB
we/PRP
did/VBD
n't/RB
get/VB
the/DT
worst/JJS
,/,
there/EX
was/VBD
some/DT
movement/NN
out/IN
of/IN
bonds/NNS
and/CC
back/RB
into/IN
stocks/NNS
''/''
yesterday/NN
./.
Mr./NNP
Einhorn/NNP
early/JJ
yesterday/NN
told/VBD
Goldman/NNP
traders/NNS
and/CC
salesmen/NNS
that/IN
he/PRP
recommends/VBZ
investors/NNS
increase/VB
their/PRP$
stock/NN
holdings/NNS
./.
Speculation/NN
that/IN
the/DT
Federal/NNP
Reserve/NNP
stands/VBZ
ready/JJ
to/TO
act/VB
as/IN
a/DT
safety/NN
net/NN
for/IN
the/DT
financial/JJ
system/NN
helped/VBD
restore/VB
investor/NN
confidence/NN
yesterday/NN
,/,
said/VBD
Mitchell/NNP
Shivers/NNP
,/,
president/NN
of/IN
Kleinwort/NNP
Benson/NNP
Government/NNP
Securities/NNPS
Inc/NNP
./.
Many/JJ
investment/NN
managers/NNS
expect/VBP
the/DT
Fed/NNP
to/TO
ease/VB
credit/NN
further/RBR
in/IN
coming/VBG
weeks/NNS
to/TO
bolster/VB
the/DT
economy/NN
./.
In/IN
major/JJ
market/NN
activity/NN
:/:
Bond/NN
prices/NNS
plummeted/VBD
,/,
reversing/VBG
Friday/NNP
's/POS
big/JJ
gains/NNS
./.
The/DT
yield/NN
on/IN
the/DT
Treasury/NNP
's/POS
benchmark/JJ
30-year/JJ
issue/NN
rose/VBD
to/TO
7.97/CD
%/NN
./.
The/DT
dollar/NN
bounced/VBD
back/RB
in/IN
the/DT
currency/NN
markets/NNS
./.
In/IN
New/NNP
York/NNP
very/RB
late/RB
yesterday/RB
,/,
it/PRP
was/VBD
quoted/VBN
at/IN
141.80/CD
Japanese/JJ
yen/NNS
and/CC
1.8685/CD
West/JJ
German/JJ
marks/NNS
,/,
up/IN
from/IN
141.50/CD
yen/NNS
and/CC
1.8655/CD
marks/NNS
late/JJ
Friday/NNP
./.
Despite/IN
turmoil/NN
created/VBN
by/IN
a/DT
costly/JJ
S&L/NN
bailout/NN
and/CC
the/DT
growing/VBG
realization/NN
that/IN
a/DT
government/NN
guarantee/NN
may/MD
become/VB
a/DT
taxpayer/NN
liability/NN
,/,
some/DT
members/NNS
of/IN
Congress/NNP
are/VBP
insistent/JJ
on/IN
using/VBG
tax/NN
dollars/NNS
as/IN
collateral/NN
for/IN
risky/JJ
and/CC
unnecessary/JJ
government-backed/JJ
deals/NNS
./.
This/DT
appears/VBZ
to/TO
be/VB
the/DT
case/NN
with/IN
the/DT
Federal/NNP
Housing/NNP
Administration/NNP
's/POS
mortgage/NN
guarantee/NN
program/NN
./.
A/DT
program/NN
created/VBD
to/TO
assist/VB
low/JJ
moderate-income/JJ
people/NNS
,/,
it/PRP
may/MD
soon/RB
be/VB
expanded/VBN
to/TO
accommodate/VB
much/JJ
higher/JJR
loan/NN
amounts/NNS
for/IN
well-to-do/JJ
home/NN
purchasers/NNS
./.
The/DT
FHA/NNP
now/RB
holds/VBZ
a/DT
50/CD
%/NN
share/NN
of/IN
the/DT
mortgage/NN
insurance/NN
market/NN
,/,
while/IN
mismanagement/NN
prevails/VBZ
throughout/IN
the/DT
agency/NN
./.
The/DT
General/NNP
Accounting/NNP
Office/NNP
has/VBZ
just/RB
completed/VBN
an/DT
FHA/NNP
financial/JJ
audit/NN
showing/VBG
a/DT
loss/NN
of/IN
$/$
4.2/CD
billion/CD
for/IN
fiscal/JJ
1988/CD
./.
Significant/JJ
losses/NNS
are/VBP
also/RB
expected/VBN
for/IN
the/DT
fiscal/JJ
year/NN
just/RB
ended/VBN
./.
Congress/NNP
should/MD
not/RB
consider/VB
any/DT
expansion/NN
of/IN
FHA/NNP
until/IN
a/DT
comprehensive/JJ
,/,
proven/JJ
plan/NN
for/IN
FHA/NNP
solvency/NN
and/CC
reform/NN
is/VBZ
established/VBN
./.
Ignoring/VBG
the/DT
FHA/NNP
losses/NNS
,/,
a/DT
few/JJ
of/IN
my/PRP$
colleagues/NNS
have/VBP
pushed/VBN
for/IN
expansion/NN
of/IN
FHA/NNP
mortgage/NN
guarantees/NNS
by/IN
including/VBG
wealthier/JJR
home/NN
purchasers/NNS
in/IN
the/DT
program/NN
./.
The/DT
National/NNP
Affordable/NNP
Housing/NNP
Act/NNP
Cranston-D'Amato/NNP
this/DT
year/NN
,/,
erases/VBZ
the/DT
current/JJ
mortgage/NN
guarantee/NN
ceiling/NN
of/IN
$/$
101,250/CD
and/CC
places/VBZ
a/DT
``/``
floating/JJ
cap/NN
''/''
at/IN
95/CD
%/NN
of/IN
the/DT
median/JJ
home/NN
price/NN
in/IN
higher-cost/JJR
areas/NNS
./.
While/IN
it/PRP
increases/VBZ
FHA/NNP
loan-guarantee/NN
amounts/NNS
,/,
this/DT
bill/NN
also/RB
calls/VBZ
for/IN
the/DT
reduction/NN
of/IN
down-payment/NN
requirements/NNS
./.
Legislation/NN
of/IN
this/DT
nature/NN
can/MD
be/VB
likened/VBN
to/TO
fueling/VBG
a/DT
runaway/JJ
locomotive/NN
headed/VBN
in/IN
the/DT
wrong/JJ
direction/NN
./.
Studies/NNS
consistently/RB
show/VBP
,/,
and/CC
the/DT
GAO/NNP
has/VBZ
admitted/VBN
,/,
that/IN
increasing/VBG
loan-to-value/JJ
ratios/NNS
--/:
making/VBG
higher/JJR
loans/NNS
without/IN
higher/JJR
down-payment/NN
requirements/NNS
--/:
increases/VBZ
the/DT
risk/NN
of/IN
default/NN
./.
Taxpayers/NNS
will/MD
be/VB
saddled/VBN
with/IN
a/DT
tremendous/JJ
financial/JJ
burden/NN
if/IN
these/DT
fundamental/JJ
data/NNS
are/VBP
not/RB
heeded/VBN
./.
Recently/RB
,/,
a/DT
Senate/NNP
Appropriations/NNPS
bill/NN
similarly/RB
removed/VBD
the/DT
current/JJ
FHA/NNP
mortgage/NN
guarantee/NN
ceiling/NN
and/CC
increased/VBD
it/PRP
to/TO
95/CD
%/NN
of/IN
the/DT
median/JJ
home/NN
price/NN
in/IN
higher-cost/JJR
areas/NNS
./.
This/DT
provision/NN
would/MD
have/VB
nearly/RB
doubled/VBN
FHA/NNP
loan/NN
exposure/NN
in/IN
skyrocketing/VBG
markets/NNS
where/WRB
median/JJ
home/NN
prices/NNS
can/MD
range/VB
to/TO
$/$
200,000/CD
or/CC
more/JJR
./.
Out/IN
of/IN
concern/NN
for/IN
the/DT
potentially/RB
damaging/JJ
effects/NNS
of/IN
this/DT
proposal/NN
,/,
and/CC
still/RB
awaiting/VBG
the/DT
GAO/NNP
report/NN
on/IN
FHA/NNP
losses/NNS
,/,
I/PRP
suggested/VBD
the/DT
Senate/NNP
instead/RB
work/VB
on/IN
ways/NNS
to/TO
eliminate/VB
or/CC
substantially/RB
curtail/VB
this/DT
vast/JJ
loan-guarantee/NN
expansion/NN
./.
After/IN
several/JJ
hours/NNS
of/IN
floor/NN
debate/NN
and/CC
three/CD
roll-call/NN
votes/NNS
,/,
we/PRP
reached/VBD
a/DT
compromise/NN
,/,
placing/VBG
the/DT
FHA/NNP
loan-guarantee/NN
ceiling/NN
at/IN
$/$
124,875/CD
./.
Although/IN
my/PRP$
desire/NN
to/TO
retain/VB
the/DT
present/JJ
ceiling/NN
was/VBD
exceeded/VBN
by/IN
$/$
23,625/CD
,/,
a/DT
firm/JJ
limit/NN
on/IN
loan/NN
guarantees/NNS
did/VBD
provide/VB
some/DT
consolation/NN
in/IN
the/DT
face/NN
of/IN
allowing/VBG
a/DT
haphazard/JJ
floating/JJ
cap/NN
to/TO
remain/VB
in/IN
the/DT
bill/NN
./.
Not/RB
only/RB
is/VBZ
such/JJ
an/DT
FHA/NNP
expansion/NN
risky/JJ
,/,
it/PRP
is/VBZ
also/RB
a/DT
direct/JJ
government/NN
intrusion/NN
into/IN
a/DT
market/NN
already/RB
served/VBN
by/IN
private/JJ
mortgage/NN
insurers/NNS
./.
Private/JJ
mortgage/NN
insurers/NNS
also/RB
happen/VBP
to/TO
be/VB
solvent/JJ
./.
Yes/RB
,/,
they/PRP
have/VBP
higher/JJR
down-payment/NN
requirements/NNS
./.
But/CC
people/NNS
who/WP
can/MD
afford/VB
payments/NNS
on/IN
a/DT
$/$
200,000/CD
home/NN
should/MD
be/VB
expected/VBN
to/TO
put/VB
more/JJR
money/NN
down/RP
./.
It/PRP
would/MD
be/VB
difficult/JJ
to/TO
explain/VB
to/TO
average/JJ
American/JJ
workers/NNS
that/IN
their/PRP$
tax/NN
dollars/NNS
were/VBD
being/VBG
used/VBN
to/TO
guarantee/VB
mortgages/NNS
on/IN
$/$
200,000/CD
homes/NNS
./.
If/IN
an/DT
FHA/NNP
expansion/NN
is/VBZ
such/JJ
a/DT
great/JJ
idea/NN
,/,
why/WRB
not/RB
have/VB
the/DT
federal/JJ
government/NN
guarantee/VB
all/DT
home/NN
mortgages/NNS
?/.
Congress/NNP
can/MD
not/RB
expect/VB
taxpayers/NNS
to/TO
continue/VB
bearing/VBG
the/DT
burden/NN
of/IN
well-intended/JJ
government/NN
guarantees/NNS
./.
When/WRB
Congress/NNP
increased/VBD
federal/JJ
deposit/NN
insurance/NN
to/TO
$/$
100,000/CD
from/IN
$/$
40,000/CD
,/,
it/PRP
seemed/VBD
like/IN
a/DT
good/JJ
idea/NN
./.
It/PRP
gave/VBD
the/DT
appearance/NN
of/IN
a/DT
more/RBR
stable/JJ
financial/JJ
industry/NN
./.
It/PRP
was/VBD
easy/JJ
to/TO
extend/VB
a/DT
government/NN
guarantee/NN
to/TO
cover/VB
apparent/JJ
problems/NNS
./.
But/CC
postponing/VBG
problems/NNS
soon/RB
gave/VBD
way/NN
to/TO
a/DT
nightmarish/JJ
taxpayer/NN
bailout/NN
to/TO
the/DT
tune/NN
of/IN
over/IN
$/$
200/CD
billion/CD
./.
The/DT
problems/NNS
surrounding/VBG
the/DT
FHA/NNP
must/MD
be/VB
addressed/VBN
./.
Significant/JJ
reforms/NNS
must/MD
be/VB
made/VBN
./.
The/DT
high-risk/JJ
venture/NN
of/IN
unnecessarily/RB
expanding/VBG
FHA/NNP
mortgage/NN
guarantees/NNS
without/IN
reform/NN
is/VBZ
ludicrous/JJ
./.
Sen./NNP
Nickles/NNP
R./NNP
,/,
Okla/NNP
./.
the/DT
Appropriations/NNPS
and/CC
Budget/NNP
committees/NNS
./.
story/NN
:/:
``/``
The/DT
Home/NN
Builders/NNS
'/POS
Wish-List/NN
''/''
--/:
WSJ/NNP
Oct./NNP
17/CD
,/,
1989/CD
)/)
Your/PRP$
James/NNP
P./NNP
Sterba/NNP
thought/VBD
that/DT
our/PRP$
James/NNP
P./NNP
Sterba/NNP
was/VBD
an/DT
impostor/NN
?/.
``/``
Will/MD
the/DT
Real/JJ
Jim/NNP
Please/RB
Stand/VB
Up/RB
?/.
''/''
Leisure/NN
&/CC
Arts/NNS
,/,
Sept./NNP
27/CD
./.
preposterous/JJ
!/.
I/PRP
always/RB
thought/VBD
your/PRP$
Sterba/NNP
was/VBD
the/DT
charlatan/NN
./.
But/CC
wait/VB
,/,
perhaps/RB
the/DT
two/CD
Sterbas/NNPS
are/VBP
one/NN
and/CC
the/DT
same/JJ
./.
Or/CC
are/VBP
they/PRP
two/CD
manifestations/NNS
of/IN
the/DT
one/NN
?/.
But/CC
that/DT
gets/VBZ
too/RB
philosophical/JJ
,/,
and/CC
since/IN
there/EX
are/VBP
no/DT
libraries/NNS
in/IN
New/NNP
York/NNP
City/NNP
either/DT
,/,
who/WP
can/MD
solve/VB
the/DT
riddle/NN
of/IN
the/DT
two/CD
Sterbas/NNPS
?/.
Seems/VBZ
to/TO
me/PRP
,/,
empirical/JJ
verification/NN
is/VBZ
indeed/RB
needed/JJ
./.
Jurgen/NNP
Brauer/NNP
Visiting/VBG
Faculty/NN
Fellow/NN
University/NNP
of/IN
Notre/NNP
Dame/NNP
Notre/NNP
Dame/NNP
,/,
Ind/NNP
./.
The/DT
dollar/NN
rose/VBD
yesterday/NN
but/CC
careened/VBD
like/IN
a/DT
roller-coaster/NN
in/IN
a/DT
market/NN
that/IN
traders/NNS
described/VBD
as/RB
volatile/JJ
,/,
confused/JJ
and/CC
at/IN
times/NNS
frightening/JJ
./.
And/CC
while/IN
the/DT
U.S./NNP
currency/NN
recovered/VBD
much/JJ
of/IN
the/DT
lost/VBN
ground/NN
from/IN
its/PRP$
collapse/NN
on/IN
Friday/NNP
,/,
several/JJ
dealers/NNS
contend/VBP
that/DT
its/PRP$
potential/NN
to/TO
climb/VB
further/RBR
could/MD
be/VB
limited/JJ
./.
In/IN
late/JJ
New/NNP
York/NNP
trading/NN
,/,
the/DT
dollar/NN
stood/VBD
at/IN
1.8685/CD
West/JJ
German/JJ
marks/NNS
and/CC
141.80/CD
yen/NNS
,/,
compared/VBN
with/IN
1.8655/CD
marks/NNS
and/CC
141.50/CD
yen/NNS
late/JJ
Friday/NNP
./.
The/DT
British/JJ
pound/NN
declined/VBD
to/TO
$/$
1.5755/CD
from/IN
$/$
1.5840/CD
before/IN
the/DT
weekend/NN
./.
In/IN
early/RB
trading/NN
in/IN
Tokyo/NNP
Tuesday/NNP
,/,
the/DT
U.S./NNP
currency/NN
was/VBD
changing/VBG
hands/NNS
at/IN
about/IN
142.15/CD
yen/NNS
,/,
up/RB
from/IN
Tokyo/NNP
's/POS
Monday/NNP
close/NN
of/IN
140.74/CD
yen/NNS
,/,
and/CC
at/IN
about/IN
1.8665/CD
marks/NNS
,/,
down/RB
a/DT
bit/NN
from/IN
late/JJ
trading/NN
Monday/NNP
in/IN
New/NNP
York/NNP
./.
At/IN
times/NNS
on/IN
Monday/NNP
,/,
the/DT
dollar/NN
followed/VBD
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
like/IN
a/DT
dog/NN
on/IN
a/DT
leash/NN
,/,
but/CC
only/RB
so/RB
far/RB
./.
``/``
Trading/NN
in/IN
dollar\/mark/JJ
looked/VBD
like/IN
the/DT
Dow/NNP
's/POS
shadow/NN
,/,
to/TO
a/DT
point/NN
,/,
''/''
said/VBD
Jeffrey/NNP
M./NNP
Mondschein/NNP
,/,
managing/NN
director/NN
in/IN
charge/NN
of/IN
foreign-exchange/NN
operations/NNS
at/IN
Continental/NNP
Bank/NNP
in/IN
Chicago/NNP
./.
He/PRP
said/VBD
the/DT
U.S./NNP
currency/NN
was/VBD
having/VBG
difficulty/NN
rising/VBG
above/IN
the/DT
1.87-mark/JJ
level/NN
./.
``/``
If/IN
you/PRP
take/VBP
away/RB
the/DT
stock-market/NN
brouhaha/NN
of/IN
the/DT
last/JJ
few/JJ
days/NNS
,/,
you/PRP
still/RB
have/VBP
lower/JJR
U.S/NNP
./.
interest/NN
rates/NNS
,/,
lower/JJR
U.S/NNP
./.
capacity/NN
utilization/NN
,/,
and/CC
concern/NN
about/IN
quarterly/JJ
earnings/NNS
and/CC
general/JJ
economic/JJ
strength/NN
--/:
or/CC
lack/NN
thereof/RB
,/,
''/''
said/VBD
Mr./NNP
Mondschein/NNP
,/,
``/``
so/IN
you/PRP
wonder/VBP
what/WP
the/DT
level/NN
of/IN
the/DT
dollar/NN
should/MD
be/VB
./.
''/''
Moreover/RB
,/,
forecasters/NNS
predict/VBP
that/IN
the/DT
trade/NN
deficit/NN
for/IN
August/NNP
,/,
to/TO
be/VB
released/VBN
today/NN
,/,
will/MD
worsen/VB
to/TO
more/JJR
than/IN
$/$
9/CD
billion/CD
from/IN
$/$
7.6/CD
billion/CD
the/DT
previous/JJ
month/NN
./.
The/DT
dollar/NN
's/POS
bumpy/JJ
journey/NN
began/VBD
late/JJ
Sunday/NNP
night/NN
in/IN
Far/JJ
Eastern/JJ
trading/NN
where/WRB
panic/NN
selling/NN
in/IN
a/DT
thin/JJ
market/NN
initially/RB
pushed/VBD
it/PRP
as/RB
low/JJ
as/IN
1.8305/CD
marks/NNS
and/CC
139.10/CD
yen/NNS
./.
By/IN
the/DT
end/NN
of/IN
trading/NN
in/IN
Tokyo/NNP
,/,
the/DT
dollar/NN
was/VBD
quoted/VBN
at/IN
1.8470/CD
and/CC
140.73/CD
yen/NNS
./.
But/CC
the/DT
real/JJ
fireworks/NNS
began/VBD
in/IN
European/JJ
and/CC
early/JJ
New/NNP
York/NNP
activity/NN
where/WRB
traders/NNS
were/VBD
whipsawed/VBN
by/IN
an/DT
inaccurate/JJ
report/NN
of/IN
the/DT
stock/NN
market/NN
's/POS
opening/NN
and/CC
a/DT
statement/NN
by/IN
Federal/NNP
Reserve/NNP
Board/NNP
Chairman/NNP
Alan/NNP
Greenspan/NNP
./.
Initially/RB
,/,
Reuters/NNP
reported/VBD
that/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
opened/VBD
down/RB
4/CD
%/NN
,/,
instead/RB
of/IN
the/DT
actual/JJ
0.7/CD
%/NN
decline/NN
./.
The/DT
mistake/NN
was/VBD
quickly/RB
corrected/VBN
./.
But/CC
the/DT
news/NN
prompted/VBD
traders/NNS
to/TO
dump/VB
dollars/NNS
and/CC
then/RB
almost/RB
immediately/RB
buy/VB
them/PRP
back/RB
./.
On/IN
its/PRP$
rebound/NN
,/,
the/DT
dollar/NN
soared/VBD
from/IN
about/IN
1.8480/CD
marks/NNS
to/TO
1.8735/CD
,/,
or/CC
1.4/CD
%/NN
,/,
within/IN
two-and-a-half/JJ
minutes/NNS
./.
A/DT
spokesman/NN
for/IN
Reuters/NNP
in/IN
New/NNP
York/NNP
confirmed/VBD
there/EX
was/VBD
an/DT
error/NN
and/CC
that/IN
it/PRP
was/VBD
quickly/RB
corrected/VBN
./.
Nonetheless/RB
,/,
Peter/NNP
Stein/NNP
,/,
a/DT
trader/NN
at/IN
Commerzbank/NNP
in/IN
Frankfurt/NNP
,/,
said/VBD
:/:
``/``
It/PRP
's/VBZ
crazy/JJ
;/:
it/PRP
's/POS
absolute/JJ
madness/NN
./.
''/''
Later/RB
,/,
news/NN
wires/NNS
reported/VBD
that/IN
Mr./NNP
Greenspan/NNP
said/VBD
a/DT
speech/NN
he/PRP
delivered/VBD
last/JJ
week/NN
in/IN
Moscow/NNP
had/VBD
been/VBN
misinterpreted/VBN
./.
At/IN
the/DT
time/NN
,/,
many/JJ
traders/NNS
took/VBD
it/PRP
to/TO
be/VB
a/DT
signal/NN
that/IN
the/DT
Fed/NNP
would/MD
n't/RB
lower/VB
interest/NN
rates/NNS
to/TO
weaken/VB
the/DT
dollar/NN
,/,
and/CC
that/IN
the/DT
U.S./NNP
was/VBD
at/IN
odds/NNS
with/IN
its/PRP$
major/JJ
trading/NN
partners/NNS
in/IN
seeking/VBG
to/TO
stabilize/VB
a/DT
high-flying/JJ
U.S./NNP
currency/NN
at/IN
a/DT
lower/JJR
level/NN
./.
The/DT
dollar/NN
promptly/RB
fell/VBD
nearly/RB
two/CD
pfennig/NN
to/TO
1.8560/CD
./.
``/``
It/PRP
was/VBD
up/RB
and/CC
down/RB
,/,
up/RB
and/CC
down/RB
,/,
up/RB
and/CC
down/RB
,/,
''/''
said/VBD
Marcus/NNP
Croonen/NNP
,/,
a/DT
trader/NN
at/IN
DG/NNP
Bank/NNP
in/IN
Frankfurt/NNP
./.
``/``
It/PRP
was/VBD
a/DT
bad/JJ
day/NN
./.
''/''
Indeed/RB
,/,
the/DT
dollar/NN
dropped/VBD
4.4/CD
%/NN
against/IN
the/DT
mark/NN
from/IN
its/PRP$
highs/NNS
on/IN
Friday/NNP
to/TO
its/PRP$
Sunday/NNP
night/NN
lows/NNS
only/RB
to/TO
shoot/VB
back/RB
up/RB
2.4/CD
%/NN
to/TO
its/PRP$
high/JJ
point/NN
yesterday/NN
./.
During/IN
the/DT
hectic/JJ
activity/NN
,/,
traders/NNS
said/VBD
the/DT
Danish/JJ
and/CC
Italian/JJ
central/JJ
banks/NNS
intervened/VBD
to/TO
defend/VB
their/PRP$
respective/JJ
currencies/NNS
against/IN
the/DT
strengthening/VBG
mark/NN
./.
Roberto/NNP
Bianchi/NNP
,/,
a/DT
vice/NN
president/NN
at/IN
Union/NNP
Bank/NNP
of/IN
Switzerland/NNP
,/,
described/VBD
the/DT
market/NN
's/POS
mood/NN
as/IN
confused/JJ
./.
``/``
Everybody/NN
keeps/VBZ
repeating/VBG
that/IN
it/PRP
's/VBZ
OK/UH
,/,
it/PRP
's/VBZ
not/RB
the/DT
same/JJ
as/IN
1987/CD
,/,
the/DT
central/JJ
banks/NNS
stand/VBP
ready/RB
to/TO
stabilize/VB
the/DT
market/NN
,/,
and/CC
yet/RB
there/EX
is/VBZ
a/DT
lot/NN
of/IN
uncertainty/NN
./.
''/''
Mr./NNP
Bianchi/NNP
said/VBD
some/DT
big/JJ
European/JJ
institutional/JJ
investors/NNS
were/VBD
selling/VBG
dollars/NNS
in/IN
lots/NNS
of/IN
$/$
100/CD
million/CD
to/TO
$/$
200/CD
million/CD
./.
``/``
Investors/NNS
who/WP
had/VBD
been/VBN
in/IN
dollars/NNS
for/IN
a/DT
long/JJ
time/NN
got/VBD
out/RB
./.
That/IN
led/VBN
to/TO
nervousness/NN
in/IN
the/DT
trading/NN
room/NN
,/,
''/''
said/VBD
Mr./NNP
Bianchi/NNP
./.
Yet/CC
Heiko/NNP
Thieme/NNP
,/,
an/DT
investment/NN
strategist/NN
for/IN
Deutsche/NNP
Bank/NNP
in/IN
New/NNP
York/NNP
,/,
contended/VBD
that/IN
Europeans/NNPS
had/VBD
n't/RB
purchased/VBN
many/JJ
American/JJ
shares/NNS
this/DT
year/NN
./.
Even/RB
so/RB
,/,
he/PRP
's/VBZ
bullish/JJ
./.
``/``
In/IN
my/PRP$
view/NN
,/,
the/DT
dollar/NN
is/VBZ
n't/RB
vulnerable/JJ
at/IN
all/DT
./.
On/IN
a/DT
fundamental/JJ
basis/NN
,/,
I/PRP
'm/VBP
not/RB
afraid/JJ
about/IN
the/DT
dollar/NN
,/,
which/WDT
runs/VBZ
more/JJR
of/IN
a/DT
risk/NN
of/IN
being/VBG
too/RB
strong/JJ
than/IN
too/RB
weak/JJ
,/,
''/''
said/VBD
Mr./NNP
Thieme/NNP
./.
He/PRP
expects/VBZ
the/DT
U.S./NNP
trade/NN
deficit/NN
to/TO
keep/VB
improving/VBG
and/CC
the/DT
U.S./NNP
economy/NN
to/TO
expand/VB
at/IN
2/CD
%/NN
to/TO
2.5/CD
%/NN
next/JJ
year/NN
./.
``/``
The/DT
recession/NN
fears/NNS
are/VBP
overdone/VBN
and/CC
inflation/NN
hysteria/NN
totally/RB
unfounded/JJ
,/,
''/''
Mr./NNP
Thieme/NNP
argued/VBD
./.
He/PRP
also/RB
said/VBD
that/IN
at/IN
about/IN
3/CD
%/NN
of/IN
the/DT
total/JJ
output/NN
of/IN
goods/NNS
and/CC
services/NNS
,/,
the/DT
U.S./NNP
budget/NN
deficit/NN
is/VBZ
manageable/JJ
./.
Thus/RB
,/,
with/IN
little/JJ
risk/NN
of/IN
losing/VBG
profits/NNS
through/IN
a/DT
deteriorating/VBG
currency/NN
,/,
``/``
what/WP
you/PRP
have/VBP
here/RB
is/VBZ
a/DT
unique/JJ
buying/NN
opportunity/NN
,/,
''/''
said/VBD
Mr./NNP
Thieme/NNP
of/IN
the/DT
U.S./NNP
stock/NN
market/NN
./.
George/NNP
Kuster/NNP
,/,
a/DT
manager/NN
at/IN
Gulf/NNP
&/CC
Occidental/NNP
Investment/NNP
S.A./NNP
in/IN
Geneva/NNP
,/,
agrees/VBZ
but/CC
only/RB
to/TO
a/DT
point/NN
./.
Unlike/IN
October/NNP
1987/CD
,/,
``/``
this/DT
time/NN
I/PRP
was/VBD
laughing/VBG
./.
I/PRP
'm/VBP
convinced/VBN
that/IN
this/DT
stock/NN
market/NN
he/PRP
said/VBD
./.
Nonetheless/RB
,/,
Mr./NNP
Kuster/NNP
added/VBD
:/:
``/``
I/PRP
do/VBP
n't/RB
trust/VB
the/DT
U.S./NNP
market/NN
that/IN
much/JJ
''/''
because/IN
of/IN
the/DT
dollar/NN
's/POS
volatility/NN
./.
``/``
My/PRP$
clients/NNS
lost/VBD
a/DT
lot/NN
of/IN
money/NN
in/IN
the/DT
1970s/NNS
because/RB
of/IN
the/DT
dollar/NN
,/,
so/IN
I/PRP
can/MD
afford/VB
not/RB
to/TO
gain/VB
''/''
from/IN
U.S./NNP
equities/NNS
./.
Instead/RB
,/,
the/DT
Swiss/JJ
money/NN
manager/NN
sees/VBZ
better/JJR
opportunities/NNS
in/IN
the/DT
Japanese/JJ
,/,
West/JJ
German/JJ
and/CC
French/JJ
markets/NNS
./.
On/IN
the/DT
Commodity/NNP
Exchange/NNP
in/IN
New/NNP
York/NNP
,/,
gold/NN
for/IN
current/JJ
delivery/NN
rose/VBD
$/$
4/CD
to/TO
$/$
367.30/CD
an/DT
ounce/NN
in/IN
moderate/JJ
trading/NN
./.
Estimated/VBN
volume/NN
was/VBD
4.5/CD
million/CD
ounces/NNS
./.
In/IN
early/RB
trading/NN
in/IN
Hong/NNP
Kong/NNP
Tuesday/NNP
,/,
gold/NN
was/VBD
quoted/VBN
at/IN
about/IN
$/$
366.27/CD
an/DT
ounce/NN
,/,
down/RB
$/$
2/CD
an/DT
ounce/NN
from/IN
Monday/NNP
./.
In/IN
all/PDT
the/DT
finger-pointing/NN
in/IN
the/DT
wake/NN
of/IN
Friday/NNP
's/POS
stock-market/NN
plunge/NN
,/,
you/PRP
'd/MD
think/VB
the/DT
Transportation/NNP
Department/NNP
,/,
of/IN
all/DT
agencies/NNS
,/,
would/MD
be/VB
safe/JJ
./.
Look/VB
again/RB
./.
Some/DT
people/NNS
on/IN
Wall/NNP
Street/NNP
--/:
and/CC
even/RB
some/DT
in/IN
the/DT
Bush/NNP
administration/NN
--/:
think/VBP
that/IN
Transportation/NNP
Secretary/NNP
Samuel/NNP
Skinner/NNP
may/MD
have/VB
played/VBN
a/DT
second-hand/JJ
role/NN
in/IN
the/DT
stock/NN
slide/NN
./.
His/PRP$
drumbeat/NN
of/IN
warnings/NNS
on/IN
the/DT
perils/NNS
of/IN
airline/NN
leveraged/JJ
buy-outs/NNS
,/,
this/DT
theory/NN
goes/VBZ
,/,
spooked/VBD
major/JJ
banks/NNS
out/IN
of/IN
bankrolling/VBG
the/DT
buy-out/NN
of/IN
UAL/NNP
Inc/NNP
./.
And/CC
that/IN
,/,
in/IN
turn/NN
,/,
sent/VBD
the/DT
market/NN
into/IN
Friday/NNP
's/POS
tailspin/NN
./.
Mr./NNP
Skinner/NNP
's/POS
LBO/NNP
comments/NNS
``/``
probably/RB
helped/VBD
discourage/VB
some/DT
of/IN
the/DT
banks/NNS
from/IN
participating/VBG
''/''
in/IN
the/DT
UAL/NNP
deal/NN
,/,
says/VBZ
Louis/NNP
Marckesano/NNP
,/,
airline/NN
analyst/NN
for/IN
Janney/NNP
Montgomery/NNP
Scott/NNP
Inc./NNP
,/,
a/DT
Philadelphia/NNP
brokerage/NN
house/NN
./.
``/``
The/DT
government/NN
is/VBZ
putting/VBG
its/PRP$
nose/NN
where/WRB
it/PRP
does/VBZ
n't/RB
belong/VB
,/,
and/CC
Skinner/NNP
is/VBZ
at/IN
the/DT
head/NN
of/IN
the/DT
pack/NN
./.
''/''
Many/JJ
others/NNS
--/:
indeed/RB
,/,
most/JJS
industry/NN
officials/NNS
and/CC
members/NNS
of/IN
Congress/NNP
--/:
absolve/VBP
Mr./NNP
Skinner/NNP
,/,
saying/VBG
that/IN
the/DT
UAL/NNP
deal/NN
was/VBD
flawed/VBN
from/IN
the/DT
start/NN
./.
But/CC
whether/IN
he/PRP
single-handedly/RB
sparked/VBD
the/DT
crash/NN
or/CC
had/VBD
nothing/NN
to/TO
do/VB
with/IN
it/PRP
,/,
one/CD
thing/NN
is/VBZ
clear/JJ
in/IN
the/DT
aftermath/NN
of/IN
the/DT
price/NN
slide/NN
:/:
Sam/NNP
Skinner/NNP
,/,
by/IN
his/PRP$
repeated/JJ
jawboning/NN
on/IN
the/DT
buy-out/NN
issue/NN
,/,
has/VBZ
irritated/VBN
some/DT
in/IN
the/DT
Bush/NNP
administration/NN
,/,
so/RB
much/RB
so/RB
that/IN
some/DT
White/NNP
House/NNP
officials/NNS
want/VBP
to/TO
rein/VB
him/PRP
in/RP
./.
Yesterday/NN
,/,
for/IN
example/NN
,/,
the/DT
administration/NN
came/VBD
out/RB
in/IN
opposition/NN
to/TO
legislation/NN
to/TO
strengthen/VB
the/DT
Transportation/NNP
Department/NNP
's/POS
hand/NN
in/IN
blocking/VBG
leveraged/JJ
buy-outs/NNS
--/:
despite/IN
statements/NNS
by/IN
Mr./NNP
Skinner/NNP
to/TO
Congress/NNP
that/WDT
suggested/VBD
he/PRP
looked/VBD
favorably/RB
on/IN
it/PRP
,/,
without/IN
explicitly/RB
endorsing/VBG
it/PRP
./.
Moreover/RB
,/,
administration/NN
officials/NNS
say/VBP
that/IN
Office/NNP
of/IN
Management/NNP
and/CC
Budget/NNP
Director/NNP
Richard/NNP
Darman/NNP
,/,
Treasury/NNP
Secretary/NNP
Nicholas/NNP
Brady/NNP
,/,
Council/NNP
of/IN
Economic/NNP
Advisers/NNP
Michael/NNP
Boskin/NNP
and/CC
U.S./NNP
Trade/NNP
Representative/NNP
Carla/NNP
Hills/NNP
all/DT
have/VBP
had/VBD
problems/NNS
with/IN
Mr./NNP
Skinner/NNP
's/POS
jawboning/NN
./.
Secretary/NNP
Skinner/NNP
,/,
for/IN
his/PRP$
part/NN
,/,
says/VBZ
``/``
it/PRP
's/VBZ
silly/JJ
''/''
to/TO
blame/VB
him/PRP
for/IN
the/DT
market/NN
crash/NN
./.
``/``
The/DT
banks/NNS
in/IN
this/DT
country/NN
and/CC
in/IN
Japan/NNP
could/MD
n't/RB
put/VB
the/DT
financing/NN
together/RB
on/IN
the/DT
terms/NNS
offered/VBN
,/,
''/''
he/PRP
said/VBD
in/IN
a/DT
telephone/NN
interview/NN
from/IN
Detroit/NNP
,/,
where/WRB
he/PRP
was/VBD
speaking/VBG
to/TO
the/DT
Economic/NNP
Club/NNP
of/IN
Detroit/NNP
./.
``/``
They/PRP
have/VBP
the/DT
same/JJ
kind/NN
of/IN
questions/NNS
that/IN
I/PRP
raised/VBD
about/IN
the/DT
financial/JJ
aspects/NNS
of/IN
the/DT
transaction/NN
./.
''/''
At/IN
the/DT
very/RB
least/JJS
,/,
the/DT
administration/NN
has/VBZ
been/VBN
sending/VBG
mixed/JJ
signals/NNS
about/IN
leveraged/JJ
buy-outs/NNS
and/CC
foreign/JJ
ownership/NN
of/IN
U.S./NNP
airlines/NNS
./.
Last/JJ
month/NN
,/,
Mr./NNP
Skinner/NNP
forced/VBD
Northwest/NNP
Airlines/NNPS
to/TO
reduce/VB
a/DT
stake/NN
held/VBN
by/IN
KLM/NNP
Royal/NNP
Dutch/NNP
Airlines/NNPS
to/TO
ensure/VB
,/,
he/PRP
said/VBD
,/,
that/IN
the/DT
foreign/JJ
airline/NN
would/MD
n't/RB
illegally/RB
control/VB
Northwest/NNP
./.
But/CC
it/PRP
is/VBZ
n't/RB
clear/JJ
how/WRB
he/PRP
would/MD
treat/VB
other/JJ
leveraged/JJ
buy-outs/NNS
./.
Each/DT
deal/NN
,/,
he/PRP
insists/VBZ
,/,
must/MD
be/VB
handled/VBN
separately/RB
,/,
on/IN
a/DT
``/``
case-by-case/JJ
''/''
basis/NN
./.
That/DT
gives/VBZ
Mr./NNP
Skinner/NNP
lots/NNS
of/IN
wiggle/NN
room/NN
,/,
but/CC
critics/NNS
say/VBP
it/PRP
does/VBZ
n't/RB
provide/VB
a/DT
clear/JJ
picture/NN
to/TO
the/DT
business/NN
community/NN
of/IN
what/WP
would/MD
pass/VB
government/NN
muster/NN
./.
``/``
It/PRP
's/VBZ
a/DT
regulatory/JJ
scandal/NN
,/,
''/''
says/VBZ
Timothy/NNP
Pettee/NNP
,/,
a/DT
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
airline/NN
analyst/NN
,/,
who/WP
contends/VBZ
that/IN
the/DT
lack/NN
of/IN
clear/JJ
standards/NNS
raises/VBZ
the/DT
specter/NN
of/IN
inconsistent/JJ
decision-making/NN
and/CC
unfair/JJ
treatment/NN
./.
Mr./NNP
Skinner/NNP
says/VBZ
he/PRP
has/VBZ
n't/RB
spelled/VBN
out/RP
a/DT
policy/NN
for/IN
leveraged/JJ
buy-outs/NNS
because/IN
Wall/NNP
Street/NNP
bankers/NNS
and/CC
lawyers/NNS
would/MD
simply/RB
find/VB
ways/NNS
to/TO
circumvent/VB
it/PRP
./.
But/CC
others/NNS
say/VBP
Mr./NNP
Skinner/NNP
is/VBZ
gagged/VBN
until/IN
the/DT
Economic/NNP
Policy/NNP
Council/NNP
,/,
a/DT
cabinet-level/JJ
group/NN
that/WDT
makes/VBZ
decisions/NNS
on/IN
national/JJ
economic/JJ
issues/NNS
,/,
finishes/VBZ
its/PRP$
ruminations/NNS
on/IN
the/DT
issue/NN
./.
The/DT
group/NN
is/VBZ
scheduled/VBN
to/TO
discuss/VB
airline/NN
buy-outs/NNS
again/RB
today/NN
./.
But/CC
although/IN
the/DT
administration/NN
has/VBZ
yet/RB
to/TO
reach/VB
a/DT
decision/NN
on/IN
airline/NN
buy-outs/NNS
,/,
President/NNP
Bush/NNP
and/CC
Treasury/NNP
Secretary/NNP
Brady/NNP
in/IN
general/JJ
do/VBP
n't/RB
have/VB
philosophical/JJ
problems/NNS
with/IN
leveraged/JJ
buy-outs/NNS
or/CC
foreign/JJ
investment/NN
involving/VBG
non-airline/JJ
companies/NNS
,/,
and/CC
do/VBP
n't/RB
appear/VB
inclined/VBN
to/TO
block/VB
them/PRP
./.
Mr./NNP
Bush/NNP
has/VBZ
n't/RB
yet/RB
focused/VBD
on/IN
the/DT
airline/NN
buy-out/NN
question/NN
./.
The/DT
buy-out/NN
issue/NN
is/VBZ
politically/RB
and/CC
financially/RB
complex/JJ
because/RB
of/IN
two/CD
separate/JJ
but/CC
intertwining/JJ
questions/NNS
--/:
foreign/JJ
ownership/NN
and/CC
debt/NN
levels/NNS
./.
Foreign/JJ
companies/NNS
are/VBP
barred/VBN
by/IN
law/NN
from/IN
holding/VBG
more/JJR
than/IN
25/CD
%/NN
voting/NN
stock/NN
,/,
or/CC
exerting/VBG
actual/JJ
control/NN
,/,
over/IN
U.S./NNP
airlines/NNS
./.
Under/IN
the/DT
original/JJ
Northwest/NNP
Airlines/NNPS
bid/NN
,/,
KLM/NNP
would/MD
have/VB
contributed/VBN
57/CD
%/NN
of/IN
the/DT
equity/NN
but/CC
received/VBD
only/RB
5/CD
%/NN
of/IN
the/DT
voting/NN
stock/NN
./.
The/DT
Transportation/NNP
Department/NNP
concluded/VBD
that/DT
was/VBD
a/DT
violation/NN
of/IN
the/DT
spirit/NN
,/,
if/IN
not/RB
the/DT
letter/NN
,/,
of/IN
the/DT
law/NN
,/,
and/CC
persuaded/VBD
Northwest/NNP
to/TO
restructure/VB
the/DT
deal/NN
./.
Among/IN
other/JJ
things/NNS
,/,
the/DT
Economic/NNP
Policy/NNP
Council/NNP
is/VBZ
discussing/VBG
the/DT
department/NN
's/POS
interpretation/NN
of/IN
the/DT
law/NN
./.
It/PRP
appears/VBZ
that/IN
some/DT
leading/VBG
administration/NN
officials/NNS
believe/VBP
the/DT
Northwest/NNP
decision/NN
leaves/VBZ
the/DT
U.S./NNP
open/RB
to/TO
charges/NNS
of/IN
protectionism/NN
and/CC
could/MD
undermine/VB
the/DT
U.S./NNP
position/NN
in/IN
international/JJ
trade/NN
talks/NNS
./.
Mr./NNP
Skinner/NNP
,/,
they/PRP
complain/VBP
,/,
went/VBD
too/RB
far/RB
in/IN
defining/VBG
``/``
control/NN
''/''
by/IN
American/JJ
citizens/NNS
and/CC
should/MD
be/VB
discouraged/VBN
from/IN
applying/VBG
the/DT
same/JJ
reasoning/NN
to/TO
future/JJ
buy-outs/NNS
./.
Mr./NNP
Skinner/NNP
plays/VBZ
down/RP
any/DT
rift/NN
in/IN
the/DT
administration/NN
on/IN
the/DT
foreign-ownership/NN
question/NN
./.
``/``
I/PRP
think/VBP
that/IN
Darman/NNP
,/,
Brady/NNP
,/,
Boskin/NNP
and/CC
I/PRP
all/DT
have/VBP
the/DT
same/JJ
basic/JJ
understanding/NN
of/IN
the/DT
importance/NN
of/IN
foreign/JJ
investment/NN
in/IN
this/DT
country/NN
,/,
''/''
he/PRP
said/VBD
yesterday/RB
./.
``/``
And/CC
they/PRP
all/DT
understand/VB
I/PRP
have/VBP
a/DT
statutory/JJ
duty/NN
to/TO
enforce/VB
safety/NN
and/CC
existing/VBG
law/NN
regarding/VBG
foreign/JJ
ownership/NN
./.
''/''
He/PRP
and/CC
other/JJ
department/NN
officials/NNS
argue/VBP
that/IN
it/PRP
would/MD
be/VB
foolish/JJ
to/TO
open/VB
U.S./NNP
markets/NNS
to/TO
foreign/JJ
carriers/NNS
through/IN
investments/NNS
,/,
when/WRB
other/JJ
countries/NNS
are/VBP
blocking/VBG
expanded/JJ
service/NN
by/IN
American/JJ
carriers/NNS
overseas/RB
./.
The/DT
debt/NN
issue/NN
also/RB
is/VBZ
contentious/JJ
./.
Mr./NNP
Skinner/NNP
says/VBZ
he/PRP
is/VBZ
concerned/JJ
that/IN
heavily/RB
leveraged/JJ
airlines/NNS
may/MD
be/VB
so/RB
stretched/VBN
for/IN
funds/NNS
that/DT
safety/NN
will/MD
suffer/VB
./.
``/``
I/PRP
have/VBP
to/TO
make/VB
sure/JJ
that/IN
every/DT
company/NN
spends/VBZ
the/DT
right/JJ
amount/NN
on/IN
maintenance/NN
,/,
''/''
he/PRP
says/VBZ
./.
But/CC
some/DT
experts/NNS
say/VBP
that/IN
there/EX
is/VBZ
n't/RB
a/DT
correlation/NN
between/IN
an/DT
airline/NN
's/POS
debt/NN
load/NN
and/CC
its/PRP$
safety/NN
record/NN
./.
``/``
No/DT
systematic/JJ
link/NN
between/IN
finances/NNS
and/CC
safety/NN
has/VBZ
ever/RB
been/VBN
demonstrated/VBN
,/,
''/''
says/VBZ
Michael/NNP
Levine/NNP
,/,
dean/NN
of/IN
the/DT
Yale/NNP
University/NNP
School/NNP
of/IN
Organization/NNP
and/CC
Management/NNP
and/CC
formerly/RB
a/DT
top/JJ
official/NN
with/IN
the/DT
Civil/NNP
Aeronautics/NNP
Board/NNP
./.
Mr./NNP
Skinner/NNP
satisfied/VBD
his/PRP$
safety/NN
concerns/NNS
on/IN
the/DT
Northwest/NNP
deal/NN
by/IN
requiring/VBG
the/DT
airline/NN
to/TO
file/VB
certain/JJ
financial/JJ
information/NN
that/WDT
could/MD
affect/VB
safety/NN
,/,
including/VBG
maintenance/NN
expenditures/NNS
./.
But/CC
now/RB
he/PRP
is/VBZ
under/IN
pressure/NN
by/IN
some/DT
in/IN
Congress/NNP
to/TO
extend/VB
those/DT
reporting/VBG
requirements/NNS
to/TO
other/JJ
debt-laden/JJ
airlines/NNS
that/WDT
have/VBP
n't/RB
been/VBN
involved/VBN
in/IN
recent/JJ
buy-outs/NNS
./.
A/DT
final/JJ
dispute/NN
involved/VBN
in/IN
the/DT
leveraged/JJ
buy-out/NN
issue/NN
is/VBZ
how/WRB
much/JJ
authority/NN
the/DT
Transportation/NNP
Department/NNP
should/MD
have/VB
in/IN
dealing/VBG
with/IN
LBOs/NNS
./.
Several/JJ
members/NNS
of/IN
Congress/NNP
,/,
generally/RB
delighted/JJ
with/IN
Mr./NNP
Skinner/NNP
's/POS
activist/JJ
approach/NN
to/TO
buy-outs/NNS
,/,
want/VBP
the/DT
department/NN
to/TO
be/VB
able/JJ
to/TO
block/VB
the/DT
deals/NNS
before/IN
they/PRP
become/VBP
final/JJ
./.
But/CC
the/DT
administration/NN
told/VBD
lawmakers/NNS
yesterday/NN
that/IN
it/PRP
opposed/VBD
the/DT
legislation/NN
,/,
saying/VBG
the/DT
government/NN
already/RB
has/VBZ
enough/JJ
authority/NN
./.
Currently/RB
,/,
however/RB
,/,
the/DT
Transportation/NNP
Department/NNP
's/POS
authority/NN
over/IN
leveraged/JJ
buy-outs/NNS
appears/VBZ
to/TO
some/DT
to/TO
be/VB
a/DT
case/NN
of/IN
too/RB
much/JJ
,/,
too/RB
late/RB
./.
The/DT
department/NN
does/VBZ
n't/RB
have/VB
prior-review/JJ
authority/NN
./.
In/IN
addition/NN
,/,
if/IN
it/PRP
ca/MD
n't/RB
persuade/VB
a/DT
company/NN
to/TO
restructure/VB
an/DT
unacceptable/JJ
buy-out/NN
plan/NN
,/,
its/PRP$
only/JJ
recourse/NN
is/VBZ
to/TO
revoke/VB
the/DT
airline/NN
's/POS
certificate/NN
--/:
in/IN
effect/NN
grounding/VBG
the/DT
carrier/NN
./.
That/IN
,/,
says/VBZ
House/NNP
Aviation/NNP
Subcommittee/NNP
Chairman/NNP
James/NNP
Oberstar/NNP
,/,
a/DT
Minnesota/NNP
Democrat/NNP
,/,
is/VBZ
like/IN
``/``
using/VBG
a/DT
howitzer/NN
to/TO
go/VB
deer/NNS
hunting/NN
./.
''/''
In/IN
a/DT
sign/NN
of/IN
its/PRP$
continuing/VBG
problems/NNS
in/IN
the/DT
U.S./NNP
auto/NN
market/NN
,/,
General/NNP
Motors/NNPS
Corp./NNP
acknowledged/VBD
that/IN
a/DT
key/JJ
midsized-car/NN
plant/NN
will/MD
shut/VB
down/RB
for/IN
two/CD
weeks/NNS
to/TO
cut/VB
bulging/VBG
inventories/NNS
of/IN
Pontiac/NNP
Grand/NNP
Prix/NNP
models/NNS
./.
Meanwhile/RB
,/,
GM/NNP
Chairman/NNP
Roger/NNP
B./NNP
Smith/NNP
said/VBD
it/PRP
should/MD
be/VB
``/``
no/DT
surprise/NN
''/''
the/DT
auto/NN
maker/NN
is/VBZ
moving/VBG
to/TO
close/VB
permanently/RB
more/JJR
North/JJ
American/JJ
assembly/NN
plants/NNS
./.
At/IN
an/DT
Economic/NNP
Club/NNP
of/IN
Detroit/NNP
luncheon/NN
,/,
Mr./NNP
Smith/NNP
said/VBD
announcements/NNS
last/JJ
week/NN
that/WDT
indicated/VBD
at/IN
least/JJS
three/CD
and/CC
perhaps/RB
five/CD
more/JJR
GM/NNP
plants/NNS
in/IN
the/DT
U.S./NNP
and/CC
Canada/NNP
may/MD
close/VB
by/IN
the/DT
early/JJ
1990s/NNS
reflect/VBP
``/``
a/DT
carefully/RB
conceived/JJ
,/,
calculated/JJ
and/CC
executed/JJ
strategic/JJ
plan/NN
./.
''/''
Mr./NNP
Smith/NNP
said/VBD
GM/NNP
is/VBZ
looking/VBG
for/IN
ways/NNS
to/TO
save/VB
some/DT
of/IN
the/DT
five/CD
older/JJR
plants/NNS
targeted/VBN
last/JJ
week/NN
./.
``/``
I/PRP
'm/VBP
hoping/VBG
we/PRP
'll/MD
need/VB
another/DT
plant/NN
for/IN
the/DT
APV/NNP
,/,
''/''
a/DT
new/JJ
plastic-bodied/JJ
minivan/NN
now/RB
being/VBG
assembled/VBN
at/IN
a/DT
single/JJ
plant/NN
in/IN
Tarrytown/NNP
,/,
N.Y./NNP
,/,
he/PRP
said/VBD
./.
However/RB
,/,
Mr./NNP
Smith/NNP
said/VBD
that/IN
as/IN
a/DT
result/NN
of/IN
a/DT
$/$
70/CD
billion/CD
factory-modernization/NN
program/NN
undertaken/VBN
over/IN
the/DT
last/JJ
decade/NN
,/,
``/``
we/PRP
can/MD
produce/VB
more/JJR
in/IN
the/DT
new/JJ
plants/NNS
than/IN
we/PRP
could/MD
in/IN
the/DT
old/JJ
plants/NNS
./.
''/''
But/CC
GM/NNP
is/VBZ
also/RB
struggling/VBG
with/IN
a/DT
steep/JJ
decline/NN
in/IN
U.S./NNP
car-market/NN
share/NN
that/IN
was/VBD
n't/RB
part/NN
of/IN
the/DT
company/NN
's/POS
strategic/JJ
plans/NNS
when/WRB
it/PRP
began/VBD
the/DT
modernization/NN
program/NN
./.
The/DT
latest/JJS
evidence/NN
of/IN
that/DT
is/VBZ
the/DT
decision/NN
to/TO
idle/VB
the/DT
Fairfax/NNP
,/,
Kan./NNP
,/,
plant/NN
that/WDT
makes/VBZ
the/DT
Grand/NNP
Prix/NNP
less/JJR
than/IN
three/CD
weeks/NNS
into/IN
the/DT
new/JJ
model/NN
year/NN
./.
The/DT
Grand/NNP
Prix/NNP
is/VBZ
one/CD
of/IN
GM/NNP
's/POS
newest/JJS
lines/NNS
of/IN
cars/NNS
,/,
the/DT
so-called/JJ
GM-10/NN
midsized/JJ
cars/NNS
./.
This/DT
fall/NN
,/,
GM/NNP
introduced/VBD
the/DT
first/JJ
four-door/JJ
versions/NNS
of/IN
the/DT
cars/NNS
--/:
a/DT
move/NN
that/WDT
was/VBD
supposed/VBN
to/TO
spur/VB
sales/NNS
of/IN
the/DT
models/NNS
,/,
which/WDT
have/VBP
been/VBN
disappointing/JJ
so/RB
far/RB
./.
But/CC
GM/NNP
officials/NNS
confirmed/VBD
they/PRP
will/MD
close/VB
the/DT
Fairfax/NNP
plant/NN
for/IN
two/CD
weeks/NNS
beginning/VBG
Oct./NNP
30/CD
because/IN
of/IN
slow/JJ
sales/NNS
,/,
bringing/VBG
to/TO
10/CD
the/DT
number/NN
of/IN
weeks/NNS
it/PRP
will/MD
have/VB
been/VBN
closed/JJ
since/IN
early/JJ
June/NNP
./.
U.S./NNP
car/NN
dealers/NNS
had/VBD
a/DT
92-day/JJ
supply/NN
of/IN
the/DT
cars/NNS
at/IN
the/DT
end/NN
of/IN
September/NNP
,/,
according/VBG
to/TO
industry/NN
trade/NN
publication/NN
Wards/NNP
Automotive/NNP
Reports/NNPS
./.
That/DT
's/VBZ
about/IN
50/CD
%/NN
higher/JJR
than/IN
the/DT
60-to-65-day/JJ
supply/NN
considered/VBN
normal/JJ
in/IN
the/DT
industry/NN
./.
Union/NN
officials/NNS
at/IN
the/DT
Fairfax/NNP
plant/NN
said/VBD
the/DT
company/NN
is/VBZ
studying/VBG
the/DT
feasibility/NN
of/IN
giving/VBG
the/DT
plant/NN
another/DT
product/NN
to/TO
build/VB
,/,
contrary/JJ
to/TO
GM/NNP
's/POS
original/JJ
plan/NN
./.
Company/NN
officials/NNS
declined/VBD
to/TO
comment/VB
on/IN
this/DT
issue/NN
,/,
calling/VBG
the/DT
talk/NN
``/``
speculation/NN
./.
''/''
Louisiana-Pacific/NNP
Corp./NNP
and/CC
Pope/NNP
&/CC
Talbot/NNP
Inc./NNP
posted/VBD
strong/JJ
third-quarter/JJ
profit/NN
gains/NNS
,/,
citing/VBG
continued/VBN
strong/JJ
demand/NN
and/CC
firm/JJ
prices/NNS
in/IN
the/DT
forest-products/NNS
business/NN
./.
Louisiana-Pacific/NNP
reported/VBD
a/DT
40/CD
%/NN
increase/NN
in/IN
net/JJ
income/NN
to/TO
$/$
51.5/CD
million/CD
,/,
or/CC
$/$
1.34/CD
a/DT
share/NN
,/,
from/IN
$/$
36.8/CD
million/CD
,/,
or/CC
97/CD
cents/NNS
a/DT
share/NN
,/,
the/DT
year/NN
earlier/RB
./.
Sales/NNS
in/IN
the/DT
period/NN
increased/VBN
about/IN
10/CD
%/NN
to/TO
$/$
510.1/CD
million/CD
from/IN
$/$
462.9/CD
million/CD
./.
Harry/NNP
A./NN
Merlo/NNP
,/,
chairman/NN
and/CC
president/NN
,/,
credited/VBN
strong/JJ
demand/NN
for/IN
plywood/NN
and/CC
other/JJ
building/NN
products/NNS
./.
The/DT
record/NN
results/NNS
came/VBD
despite/IN
a/DT
decline/NN
in/IN
operating/NN
results/NNS
for/IN
the/DT
company/NN
's/POS
pulp/NN
business/NN
,/,
he/PRP
added/VBD
./.
This/DT
was/VBD
due/JJ
in/IN
large/JJ
measure/NN
to/TO
a/DT
drought-related/JJ
production/NN
curtailment/NN
at/IN
its/PRP$
Ketchikan/NNP
,/,
Alaska/NNP
,/,
pulp/NN
mill/NN
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
the/DT
company/NN
posted/VBD
a/DT
34/CD
%/NN
gain/NN
in/IN
net/NN
to/TO
$/$
139.8/CD
million/CD
,/,
or/CC
$/$
3.66/CD
a/DT
share/NN
,/,
from/IN
$/$
104.1/CD
million/CD
,/,
or/CC
$/$
2.73/CD
a/DT
share/NN
./.
The/DT
company/NN
said/VBD
it/PRP
had/VBD
an/DT
11/CD
%/NN
sales/NNS
increase/NN
to/TO
$/$
1.50/CD
billion/CD
from/IN
$/$
1.35/CD
billion/CD
the/DT
year/NN
earlier/RB
./.
The/DT
company/NN
's/POS
1988/CD
results/NNS
do/VBP
n't/RB
include/VB
a/DT
non-recurring/JJ
gain/NN
on/IN
the/DT
final/JJ
settlement/NN
of/IN
the/DT
Redwood/NNP
National/NNP
Park/NNP
condemnation/NN
in/IN
1988/CD
's/POS
first/JJ
quarter/NN
./.
Pope/NNP
&/CC
Talbot/NNP
said/VBD
healthy/JJ
demand/NN
and/CC
prices/NNS
,/,
especially/RB
for/IN
consumer/NN
products/NNS
,/,
led/VBN
to/TO
a/DT
55/CD
%/NN
increase/NN
in/IN
third-quarter/JJ
net/NN
to/TO
$/$
13.2/CD
million/CD
,/,
or/CC
$/$
1.11/CD
a/DT
share/NN
,/,
from/IN
$/$
8.5/CD
million/CD
,/,
or/CC
71/CD
cents/NNS
a/DT
share/NN
./.
The/DT
1989/CD
results/NNS
include/VBP
a/DT
gain/NN
of/IN
$/$
3.5/CD
million/CD
,/,
or/CC
29/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
the/DT
sale/NN
of/IN
a/DT
sawmill/NN
./.
Sales/NNS
in/IN
the/DT
quarter/NN
rose/VBD
20/CD
%/NN
to/TO
$/$
162.1/CD
million/CD
from/IN
$/$
135.3/CD
million/CD
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
the/DT
company/NN
posted/VBD
profit/NN
of/IN
$/$
33.8/CD
million/CD
,/,
or/CC
$/$
2.86/CD
a/DT
share/NN
,/,
including/VBG
the/DT
gain/NN
on/IN
the/DT
sawmill/NN
's/POS
sale/NN
./.
That/DT
was/VBD
up/RB
45/CD
%/NN
from/IN
$/$
23.3/CD
million/CD
,/,
or/CC
$/$
1.95/CD
a/DT
share/NN
,/,
the/DT
year/NN
earlier/RB
./.
Nine-month/JJ
sales/NNS
grew/VBD
26/CD
%/NN
to/TO
$/$
471.1/CD
million/CD
from/IN
$/$
373/CD
million/CD
./.
Looking/VBG
ahead/RB
,/,
Pope/NNP
&/CC
Talbot/NNP
said/VBD
it/PRP
expects/VBZ
all/DT
of/IN
1989/CD
to/TO
be/VB
a/DT
record/NN
year/NN
./.
Louisiana-Pacific/NNP
said/VBD
fourth-quarter/JJ
performance/NN
is/VBZ
usually/RB
hampered/VBN
by/IN
weather-related/JJ
construction/NN
slowdowns/NNS
,/,
but/CC
that/IN
``/``
many/JJ
positive/JJ
factors/NNS
''/''
should/MD
help/VB
the/DT
period/NN
's/POS
results/NNS
./.
Some/DT
nervous/JJ
market/NN
makers/NNS
in/IN
Nasdaq/NNP
over-the-counter/JJ
stocks/NNS
lowered/VBD
prices/NNS
severely/RB
at/IN
the/DT
start/NN
of/IN
trading/NN
in/IN
response/NN
to/TO
Friday/NNP
's/POS
sell-off/NN
./.
The/DT
markdowns/NNS
were/VBD
excessive/JJ
,/,
some/DT
traders/NNS
groused/VBD
,/,
and/CC
indeed/RB
the/DT
market/NN
closed/VBD
lower/RBR
despite/IN
heavy/JJ
buying/NN
of/IN
its/PRP$
leading/VBG
technology/NN
stocks/NNS
./.
After/IN
plummeting/VBG
nearly/RB
19/CD
points/NNS
almost/RB
immediately/RB
after/IN
trading/NN
began/VBD
,/,
the/DT
Nasdaq/NNP
Composite/NNP
Index/NNP
staged/VBD
a/DT
comeback/NN
,/,
but/CC
still/RB
closed/VBD
off/IN
6.31/CD
,/,
or/CC
1.4/CD
%/NN
,/,
at/IN
460.98/CD
./.
Volume/NN
was/VBD
an/DT
astonishing/JJ
242.8/CD
million/CD
shares/NNS
,/,
33/CD
%/NN
more/JJR
than/IN
the/DT
turnover/NN
on/IN
May/NNP
19/CD
,/,
which/WDT
had/VBD
been/VBN
this/DT
year/NN
's/POS
busiest/JJS
day/NN
./.
Many/JJ
observers/NNS
said/VBD
yesterday/NN
afternoon/NN
that/IN
the/DT
price-slashing/NN
by/IN
some/DT
market/NN
makers/NNS
during/IN
the/DT
last/JJ
hour/NN
of/IN
trading/NN
Friday/NNP
and/CC
before/IN
the/DT
market/NN
opened/VBN
yesterday/NN
was/VBD
overdone/VBN
./.
It/PRP
was/VBD
,/,
they/PRP
said/VBD
,/,
a/DT
factor/NN
in/IN
why/WRB
the/DT
market/NN
did/VBD
n't/RB
rally/VB
as/RB
strongly/RB
as/IN
the/DT
biggest/JJS
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
issues/NNS
./.
The/DT
Dow/NNP
Jones/NNP
industrials/NNS
rose/VBD
3.4/CD
%/NN
./.
``/``
Bids/NNS
were/VBD
lowered/VBN
too/RB
much/RB
,/,
''/''
said/VBD
Gary/NNP
Rosenbach/NNP
,/,
a/DT
market/NN
maker/NN
and/CC
manager/NN
of/IN
equity/NN
trading/NN
at/IN
Needham/NNP
&/CC
Co/NNP
./.
On/IN
Friday/NNP
,/,
the/DT
market/NN
makers/NNS
,/,
who/WP
must/MD
be/VB
prepared/JJ
to/TO
buy/VB
stock/NN
when/WRB
no/DT
one/NN
else/RB
will/MD
,/,
were/VBD
frantically/RB
cutting/VBG
the/DT
prices/NNS
at/IN
which/WDT
they/PRP
would/MD
take/VB
stocks/NNS
off/IN
sellers/NNS
'/POS
hands/NNS
,/,
in/IN
reaction/NN
to/TO
plunging/VBG
prices/NNS
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
according/VBG
to/TO
Mr./NNP
Rosenbach/NNP
./.
Yesterday/NN
,/,
they/PRP
again/RB
lowered/VBD
their/PRP$
bids/NNS
before/IN
trading/NN
began/VBD
,/,
in/IN
anticipation/NN
of/IN
another/DT
wave/NN
of/IN
selling/NN
./.
Joseph/NNP
Hardiman/NNP
,/,
president/NN
of/IN
the/DT
National/NNP
Association/NNP
of/IN
Securities/NNPS
Dealers/NNPS
,/,
which/WDT
oversees/VBZ
trading/NN
on/IN
Nasdaq/NNP
,/,
said/VBD
that/IN
between/IN
9/CD
a.m./RB
and/CC
9:30/CD
a.m./RB
,/,
the/DT
market/NN
's/POS
Small/NNP
Order/NNP
Execution/NNP
System/NNP
was/VBD
deluged/VBN
with/IN
six/CD
times/NNS
the/DT
normal/JJ
volume/NN
of/IN
quotation/NN
updates/NNS
from/IN
market/NN
makers/NNS
and/CC
had/VBD
to/TO
be/VB
shut/VBN
down/RB
for/IN
nearly/RB
25/CD
minutes/NNS
after/IN
trading/NN
began/VBD
so/IN
computers/NNS
could/MD
digest/VB
the/DT
data/NNS|NN
./.
Mr./NNP
Hardiman/NNP
said/VBD
the/DT
system/NN
received/VBN
about/IN
102,000/CD
updated/VBN
quotes/NNS
by/IN
10/CD
a.m./RB
,/,
compared/VBN
with/IN
20,000/CD
normally/RB
./.
He/PRP
said/VBD
total/JJ
volume/NN
on/IN
the/DT
system/NN
,/,
used/VBN
for/IN
trades/NNS
of/IN
1,000/CD
shares/NNS
or/CC
less/JJR
by/IN
non-professional/JJ
investors/NNS
,/,
was/VBD
2.5/CD
times/NNS
busier/JJR
than/IN
usual/JJ
./.
But/CC
,/,
Mr./NNP
Hardiman/NNP
was/VBD
n't/RB
complaining/VBG
./.
``/``
It/PRP
meant/VBD
that/IN
market/NN
makers/NNS
were/VBD
dynamically/RB
updating/VBG
their/PRP$
quotes/NNS
,/,
rather/RB
than/IN
sitting/VBG
there/EX
frozen/VBN
./.
''/''
Market/NN
makers/NNS
defended/VBD
their/PRP$
actions/NNS
./.
They/PRP
said/VBD
it/PRP
was/VBD
reasonable/JJ
to/TO
expect/VB
a/DT
rash/NN
of/IN
selling/NN
and/CC
to/TO
lower/VB
prices/NNS
in/IN
anticipation/NN
of/IN
it/PRP
./.
``/``
Market/NN
makers/NNS
saw/VBD
sell/JJ
orders/NNS
first/RB
and/CC
that/DT
's/VBZ
why/WRB
they/PRP
bids/NNS
Brian/NNP
Finnerty/NNP
,/,
a/DT
Shearson/NNP
Lehman/NNP
Hutton/NNP
market/NN
maker/NN
./.
``/``
The/DT
buyers/NNS
sat/VBD
back/RB
and/CC
did/VBD
n't/RB
come/VBN
in/RB
until/IN
a/DT
half/JJ
hour/NN
or/CC
45/CD
minutes/NNS
later/RB
./.
''/''
E.E./NNP
``/``
Buzzy/NNP
''/''
Geduld/NNP
,/,
president/NN
of/IN
Herzog/NNP
,/,
Heine/NNP
,/,
Geduld/NNP
,/,
a/DT
giant/JJ
market-making/NN
firm/NN
,/,
said/VBD
,/,
``/``
Stocks/NNS
looked/VBD
ugly/JJ
at/IN
9:30/CD
./.
It/PRP
was/VBD
shades/NNS
of/IN
October/NNP
1987/CD
until/IN
it/PRP
turned/VBD
and/CC
stabilized/VBD
at/IN
about/IN
11:30/CD
./.
Nobody/NN
made/VBD
a/DT
fortune/NN
on/IN
this/DT
market/NN
./.
''/''
Some/DT
of/IN
the/DT
biggest/JJS
stocks/NNS
were/VBD
snapped/VBD
up/RB
by/IN
bargain/NN
hunters/NNS
and/CC
fared/VBD
much/RB
better/RBR
./.
Intel/NNP
rose/VBD
1/CD
1\/4/CD
to/TO
33/CD
on/IN
3.7/CD
million/CD
shares/NNS
./.
Tele-Communications/NNPS
gained/VBD
1/CD
to/TO
19/CD
5\/8/CD
on/IN
3.7/CD
million/CD
shares/NNS
./.
MCI/NNP
Communications/NNPS
added/VBD
1/CD
1\/2/CD
to/TO
45/CD
on/IN
5.6/CD
million/CD
shares/NNS
./.
Apple/NNP
Computer/NNP
advanced/VBD
1/CD
to/TO
46/CD
3\/4/CD
on/IN
3.8/CD
million/CD
shares/NNS
./.
Microsoft/NNP
jumped/VBD
2/CD
1\/4/CD
to/TO
75/CD
3\/4/CD
on/IN
1.8/CD
million/CD
shares/NNS
./.
But/CC
Sun/NNP
Microsystems/NNPS
eased/VBD
1\/4/CD
to/TO
17/CD
1\/4/CD
on/IN
3.6/CD
million/CD
shares/NNS
and/CC
Lotus/NNP
Development/NNP
was/VBD
unchanged/JJ
at/IN
29/CD
7\/8/CD
./.
The/DT
result/NN
was/VBD
that/IN
the/DT
Nasdaq/NNP
100/CD
Index/NNP
of/IN
the/DT
big/JJ
non-financial/JJ
issues/NNS
rose/VBD
0.56/CD
,/,
to/TO
449.89/CD
./.
The/DT
biggest/JJS
financial/JJ
issues/NNS
,/,
tracked/VBN
by/IN
the/DT
Nasdaq/NNP
Financial/NNP
Index/NNP
,/,
were/VBD
n't/RB
as/RB
popular/JJ
,/,
falling/VBG
6.90/CD
,/,
to/TO
456.08/CD
./.
There/EX
was/VBD
some/DT
favorable/JJ
takeover/NN
news/NN
,/,
in/IN
stark/JJ
contrast/NN
to/TO
Friday/NNP
,/,
when/WRB
nervousness/NN
about/IN
the/DT
future/NN
of/IN
leveraged/JJ
buy-outs/NNS
hurt/VB
takeover-related/JJ
issues/NNS
./.
National/NNP
Pizza/NNP
said/VBD
it/PRP
signed/VBD
a/DT
definitive/JJ
agreement/NN
to/TO
acquire/VB
Skipper/NNP
's/POS
for/IN
$/$
11.50/CD
a/DT
share/NN
./.
The/DT
company/NN
said/VBD
the/DT
acquisition/NN
,/,
valued/VBN
at/IN
about/IN
$/$
31.3/CD
million/CD
,/,
is/VBZ
subject/JJ
to/TO
the/DT
condition/NN
that/IN
at/IN
least/JJS
two-thirds/NNS
of/IN
the/DT
Skipper/NNP
's/POS
shares/NNS
outstanding/JJ
are/VBP
tendered/JJ
./.
National/NNP
Pizza/NNP
also/RB
said/VBD
it/PRP
settled/VBD
its/PRP$
dispute/NN
with/IN
PepsiCo/NNP
's/POS
Pizza/NNP
Hut/NNP
unit/NN
that/WDT
had/VBD
threatened/VBN
to/TO
scuttle/VB
the/DT
proposed/VBN
acquisition/NN
./.
Skipper/NNP
's/POS
rose/VBD
1\/2/CD
to/TO
11/CD
and/CC
National/NNP
Pizza/NNP
was/VBD
unchanged/JJ
at/IN
17/CD
./.
Among/IN
other/JJ
takeover-related/JJ
issues/NNS
,/,
LIN/NNP
Broadcasting/NNP
fell/VBD
2/CD
3\/4/CD
to/TO
104/CD
3\/4/CD
./.
McCaw/NNP
Cellular/NNP
Communications/NNPS
,/,
a/DT
LIN/NNP
suitor/NN
,/,
rose/VBD
1/CD
1\/4/CD
to/TO
41/CD
1\/4/CD
./.
The/DT
biggest/JJS
percentage/NN
advancer/NN
was/VBD
Grayhound/NNP
Electronics/NNPS
,/,
which/WDT
jumped/VBD
73/CD
%/NN
,/,
or/CC
7/CD
3\/8/CD
,/,
to/TO
17/CD
1\/2/CD
./.
The/DT
stock/NN
rose/VBD
after/IN
Grayhound/NNP
said/VBD
it/PRP
agreed/VBD
to/TO
enter/VB
into/IN
a/DT
five-year/JJ
joint/JJ
venture/NN
with/IN
Lermer/NNP
Corp./NNP
,/,
a/DT
maker/NN
of/IN
airline-interior/JJ
equipment/NN
./.
Soviet/JJ
leader/NN
Mikhail/NNP
Gorbachev/NNP
wants/VBZ
to/TO
bring/VB
the/DT
nation/NN
's/POS
reformist/NN
press/NN
back/RB
into/IN
line/NN
,/,
blaming/VBG
it/PRP
for/IN
contributing/VBG
to/TO
the/DT
many/JJ
problems/NNS
he/PRP
faces/VBZ
and/CC
even/RB
suggesting/VBG
that/IN
one/CD
liberal/JJ
editor/NN
resign/VB
./.
Mr./NNP
Gorbachev/NNP
's/POS
comments/NNS
,/,
made/VBN
at/IN
a/DT
meeting/NN
with/IN
Soviet/JJ
national/JJ
editors/NNS
and/CC
media/NNS
executives/NNS
Friday/NNP
,/,
indicate/VBP
his/PRP$
growing/VBG
frustration/NN
with/IN
the/DT
nation/NN
's/POS
mounting/VBG
problems/NNS
./.
According/VBG
to/TO
people/NNS
who/WP
attended/VBD
,/,
he/PRP
did/VBD
n't/RB
advocate/VB
an/DT
end/NN
to/TO
glasnost/FW
,/,
his/PRP$
policy/NN
of/IN
openness/NN
./.
But/CC
he/PRP
made/VBD
clear/JJ
that/IN
the/DT
press/NN
should/MD
show/VB
greater/JJR
responsibility/NN
in/IN
its/PRP$
reporting/NN
and/CC
cut/VBD
back/RB
on/IN
criticism/NN
of/IN
his/PRP$
reforms/NNS
./.
The/DT
text/NN
of/IN
his/PRP$
remarks/NNS
has/VBZ
n't/RB
been/VBN
published/VBN
,/,
and/CC
editors/NNS
say/VBP
they/PRP
have/VBP
no/DT
instructions/NNS
as/IN
to/TO
whether/IN
it/PRP
will/MD
be/VB
./.
Accounts/NNS
of/IN
previous/JJ
such/JJ
meetings/NNS
with/IN
media/NNS
and/CC
other/JJ
groups/NNS
have/VBP
been/VBN
printed/VBN
,/,
sometimes/RB
after/IN
a/DT
delay/NN
of/IN
several/JJ
days/NNS
./.
Although/IN
glasnost/FW
has/VBZ
given/VBN
the/DT
government-controlled/JJ
media/NNS
here/RB
much/RB
greater/JJR
freedom/NN
to/TO
report/VB
and/CC
criticize/VB
,/,
Mr./NNP
Gorbachev/NNP
and/CC
other/JJ
Soviet/JJ
leaders/NNS
still/RB
regard/VBP
newspapers/NNS
and/CC
TV/NN
as/IN
important/JJ
propaganda/NN
tools/NNS
they/PRP
can/MD
use/VB
at/IN
will/NN
./.
According/VBG
to/TO
participants/NNS
at/IN
the/DT
meeting/NN
and/CC
Soviet/JJ
journalists/NNS
who/WP
were/VBD
later/RB
briefed/VBN
by/IN
their/PRP$
editors/NNS
,/,
Mr./NNP
Gorbachev/NNP
blamed/VBD
the/DT
press/NN
for/IN
fueling/VBG
a/DT
nationwide/JJ
mood/NN
of/IN
despondency/NN
./.
In/IN
particular/JJ
,/,
he/PRP
complained/VBD
about/IN
some/DT
articles/NNS
this/DT
summer/NN
that/WDT
openly/RB
discussed/VBD
the/DT
possibility/NN
of/IN
a/DT
coup/NN
or/CC
civil/JJ
war/NN
in/IN
the/DT
Soviet/NNP
Union/NNP
,/,
and/CC
accused/VBD
the/DT
media/NNS
of/IN
fueling/VBG
panic/NN
buying/NN
of/IN
goods/NNS
by/IN
printing/VBG
stories/NNS
about/IN
impending/VBG
shortages/NNS
./.
He/PRP
singled/VBD
out/RP
the/DT
daily/JJ
Izvestia/NNP
and/CC
the/DT
weekly/JJ
Argumenty/NNP
i/NNS
Fakty/NNP
,/,
and/CC
also/RB
gave/VBD
stinging/JJ
criticism/NN
of/IN
Yuri/NNP
Afanasyev/NNP
,/,
a/DT
leading/VBG
reformist/NN
historian/NN
who/WP
has/VBZ
written/VBN
articles/NNS
attacking/VBG
the/DT
Communist/NNP
Party/NNP
./.
Among/IN
other/JJ
things/NNS
,/,
Mr./NNP
Gorbachev/NNP
questioned/VBD
whether/IN
Mr./NNP
Afanasyev/NNP
should/MD
remain/VB
in/IN
the/DT
party/NN
./.
The/DT
meeting/NN
lasted/VBD
a/DT
little/JJ
under/IN
two/CD
hours/NNS
and/CC
was/VBD
attended/VBN
by/IN
most/JJS
members/NNS
of/IN
the/DT
ruling/VBG
Politburo/NNP
./.
There/EX
was/VBD
no/DT
other/JJ
speaker/NN
apart/RB
from/IN
the/DT
Soviet/JJ
leader/NN
,/,
and/CC
those/DT
attacked/VBN
were/VBD
n't/RB
given/VBN
the/DT
opportunity/NN
to/TO
defend/VB
themselves/PRP
./.
Mr./NNP
Afanasyev/NNP
,/,
who/WP
is/VBZ
n't/RB
an/DT
editor/NN
,/,
did/VBD
n't/RB
attend/VB
./.
According/VBG
to/TO
participants/NNS
,/,
Mr./NNP
Gorbachev/NNP
was/VBD
particularly/RB
incensed/JJ
by/IN
an/DT
article/NN
on/IN
the/DT
front/JJ
page/NN
of/IN
Argumenty/NNP
i/NNP
Fakty/NNP
this/DT
month/NN
that/WDT
examined/VBD
the/DT
popularity/NN
of/IN
members/NNS
of/IN
the/DT
Soviet/NNP
Parliament/NNP
./.
The/DT
piece/NN
was/VBD
based/VBN
on/IN
a/DT
survey/NN
of/IN
1,500/CD
readers/NNS
'/POS
letters/NNS
and/CC
contained/VBD
some/DT
criticism/NN
of/IN
Mr./NNP
Gorbachev/NNP
himself/PRP
./.
The/DT
newspaper/NN
wrote/VBD
that/IN
readers/NNS
assessed/VBD
his/PRP$
role/NN
both/DT
positively/RB
and/CC
negatively/RB
./.
It/PRP
said/VBD
many/JJ
thanked/VBD
the/DT
Soviet/JJ
leader/NN
for/IN
his/PRP$
``/``
self-control/NN
,/,
modesty/NN
,/,
culture/NN
and/CC
ability/NN
to/TO
hear/VB
a/DT
speaker/NN
out/RP
./.
''/''
But/CC
others/NNS
criticized/VBD
him/PRP
,/,
``/``
for/IN
imposing/VBG
his/PRP$
opinion/NN
on/IN
other/JJ
deputies/NNS
,/,
giving/VBG
commentaries/NNS
to/TO
many/JJ
speeches/NNS
,/,
holding/VBG
elections/NNS
with/IN
no/DT
choice/NN
of/IN
candidate/NN
,/,
putting/VBG
pressure/NN
on/IN
the/DT
voting/NN
process/NN
and/CC
maneuvering/VBG
between/IN
the/DT
right/JJ
and/CC
left/JJ
wings/NNS
''/''
of/IN
the/DT
Parliament/NNP
./.
All/PDT
this/DT
,/,
the/DT
paper/NN
quoted/VBD
readers/NNS
as/IN
saying/VBG
,/,
``/``
has/VBZ
seriously/RB
weakened/VBN
his/PRP$
authority/NN
./.
''/''
The/DT
Soviet/JJ
leader/NN
apparently/RB
suggested/VBN
to/TO
Argumenty/NNP
i/NNP
Fakty/NNP
's/POS
editor/NN
,/,
Vyacheslav/NNP
Starkov/NNP
,/,
that/IN
he/PRP
should/MD
resign/VB
./.
The/DT
comment/NN
,/,
which/WDT
Mr./NNP
Starkov/NNP
relayed/VBD
to/TO
his/PRP$
staff/NN
,/,
has/VBZ
sparked/VBN
anger/NN
and/CC
bitterness/NN
at/IN
the/DT
paper/NN
./.
Mr./NNP
Starkov/NNP
has/VBZ
been/VBN
summoned/VBN
to/TO
see/VB
the/DT
Kremlin/NNP
's/POS
ideology/NN
chief/NN
,/,
Vadim/NNP
Medvedev/NNP
,/,
in/IN
the/DT
near/JJ
future/NN
,/,
and/CC
may/MD
discover/VB
then/RB
if/IN
he/PRP
is/VBZ
to/TO
be/VB
fired/VBN
./.
Izvestia/NNP
was/VBD
criticized/VBN
for/IN
a/DT
front-page/NN
article/NN
last/JJ
Wednesday/NNP
that/WDT
took/VBD
a/DT
sharp/JJ
look/NN
at/IN
the/DT
Parliament/NNP
's/POS
activities/NNS
./.
It/PRP
attacked/VBD
the/DT
level/NN
of/IN
a/DT
debate/NN
on/IN
the/DT
private-sector/NN
cooperative/JJ
movement/NN
,/,
saying/VBG
``/``
the/DT
discussion/NN
was/VBD
more/JJR
like/IN
a/DT
riot/NN
than/IN
a/DT
civilized/JJ
exchange/NN
of/IN
points/NNS
of/IN
view/NN
./.
''/''
And/CC
it/PRP
questioned/VBD
the/DT
speed/NN
with/IN
which/WDT
the/DT
Parliament/NNP
was/VBD
adopting/VBG
new/JJ
legislation/NN
,/,
often/RB
with/IN
a/DT
minimum/NN
of/IN
debate/NN
./.
Speaking/VBG
to/TO
foreign/JJ
reporters/NNS
,/,
Ivan/NNP
Laptev/NNP
,/,
Izvestia/NNP
's/POS
editor/NN
,/,
sought/VBD
to/TO
play/VB
down/RP
Mr./NNP
Gorbachev/NNP
's/POS
criticism/NN
,/,
but/CC
he/PRP
acknowledged/VBD
that/IN
his/PRP$
paper/NN
had/VBD
been/VBN
singled/VBN
out/RB
./.
The/DT
Parliament/NNP
yesterday/NN
approved/VBD
legislation/NN
that/WDT
imposes/VBZ
new/JJ
restrictions/NNS
on/IN
the/DT
cooperative/JJ
movement/NN
,/,
enabling/VBG
local/JJ
authorities/NNS
to/TO
set/VB
ceilings/NNS
for/IN
prices/NNS
and/CC
preventing/VBG
the/DT
``/``
speculative/JJ
''/''
sale/NN
of/IN
goods/NNS
in/IN
short/JJ
supply/NN
for/IN
prices/NNS
higher/JJR
than/IN
that/IN
charged/VBN
by/IN
the/DT
state/NN
./.
Damon/NNP
Darlin/NNP
is/VBZ
a/DT
fine/JJ
reporter/NN
of/IN
serious/JJ
topics/NNS
./.
Do/VBP
n't/RB
waste/VB
his/PRP$
talents/NNS
with/IN
fatuous/JJ
assignments/NNS
such/JJ
as/IN
the/DT
Sept./NNP
20/CD
page-one/NN
article/NN
about/IN
gift-giving/NN
in/IN
Korea/NNP
./.
You/PRP
sunk/VBD
just/RB
about/IN
as/RB
low/JJ
as/IN
NBC/NNP
did/VBD
in/IN
its/PRP$
reporting/NN
on/IN
Korean/JJ
life/NN
during/IN
last/JJ
year/NN
's/POS
Olympics/NNPS
./.
You/PRP
media/NNS
folks/NNS
do/VBP
n't/RB
get/VB
it/PRP
,/,
do/VBP
you/PRP
?/.
About/IN
the/DT
Big/JJ
Picture/NN
in/IN
Korea/NNP
,/,
I/PRP
mean/VBP
./.
Your/PRP$
``/``
Tee/UH
Hee/UH
''/''
treatment/NN
of/IN
the/DT
dramatically/RB
improved/JJ
life/NN
style/NN
that/IN
the/DT
Koreans/NNPS
have/VBP
forged/VBN
,/,
particularly/RB
in/IN
the/DT
past/JJ
10/CD
years/NNS
,/,
is/VBZ
insulting/VBG
to/TO
the/DT
strong/JJ
bonds/NNS
between/IN
our/PRP$
two/CD
nations/NNS
./.
Non-``/``
Saturday/NNP
Night/NNP
Live/NNP
''/''
journalists/NNS
might/MD
have/VB
analyzed/VBN
that/IN
embedded/VBN
in/IN
the/DT
commercial/JJ
hype/NN
of/IN
the/DT
``/``
Tae/NNP
Porum/NNP
''/''
gift-giving/NN
season/NN
is/VBZ
an/DT
immense/JJ
compliment/NN
to/TO
American/JJ
assistance/NN
to/TO
Korea/NNP
./.
Some/DT
of/IN
us/PRP
,/,
who/WP
were/VBD
personal/JJ
or/CC
official/JJ
participants/NNS
in/IN
the/DT
days/NNS
when/WRB
the/DT
U.S./NNP
was/VBD
able/JJ
to/TO
supply/VB
needed/JJ
material/NN
and/CC
morale/NN
boosts/NNS
to/TO
a/DT
destitute/JJ
nation/NN
,/,
now/RB
rejoice/VBP
that/IN
the/DT
better/JJR
life/NN
we/PRP
thought/VBD
possible/JJ
for/IN
Korea/NNP
has/VBZ
come/VBN
to/TO
fruition/NN
./.
A/DT
Korean/JJ
farmer/NN
toiled/VBD
with/IN
a/DT
wooden/JJ
plow/NN
in/IN
his/PRP$
field/NN
behind/IN
a/DT
bullock/NN
in/IN
1964/CD
./.
He/PRP
now/RB
has/VBZ
a/DT
son/NN
who/WP
sells/VBZ
his/PRP$
nation/NN
's/POS
autos/NNS
,/,
computers/NNS
and/CC
a/DT
hundred/CD
other/JJ
products/NNS
to/TO
a/DT
declining/VBG
American/JJ
manufacturing-sector/NN
work/NN
force/NN
./.
If/IN
we/PRP
and/CC
the/DT
Koreans/NNPS
gaze/VBP
at/IN
the/DT
same/JJ
full/JJ
harvest/NN
moon/NN
during/IN
``/``
Tae/NNP
Porum/NNP
''/''
today/NN
,/,
which/WDT
side/NN
has/VBZ
uneasy/JJ
visions/NNS
of/IN
future/JJ
bitter/JJ
harvests/NNS
?/.
J./NNP
Richard/NNP
Overturf/NNP
Oceanside/NNP
,/,
Calif/NNP
./.
James/NNP
T./NNP
Boone/NNP
was/VBD
named/VBN
to/TO
the/DT
new/JJ
position/NN
of/IN
chief/JJ
administrative/JJ
officer/NN
,/,
becoming/VBG
second/JJ
in/IN
command/NN
at/IN
this/DT
bank/NN
holding/VBG
company/NN
./.
Mr./NNP
Boone/NNP
had/VBD
been/VBN
president/NN
and/CC
chief/JJ
executive/NN
officer/NN
of/IN
Sunburst/NNP
Bank/NNP
,/,
Louisiana/NNP
,/,
one/CD
of/IN
the/DT
company/NN
's/POS
two/CD
banks/NNS
./.
R.E./NNP
Kennington/NNP
II/NNP
continues/VBZ
as/IN
chairman/NN
and/CC
chief/JJ
executive/NN
officer/NN
./.
Robert/NNP
D./NNP
Paster/NNP
,/,
49/CD
years/NNS
old/JJ
,/,
vice/NN
president/NN
and/CC
Space/NN
Shuttle/NN
Main/JJ
Engine/NN
program/NN
manager/NN
,/,
was/VBD
named/VBN
president/NN
of/IN
the/DT
Rocketdyne/NNP
division/NN
of/IN
this/DT
aerospace/NN
concern/NN
,/,
succeeding/VBG
Richard/NNP
Schwartz/NNP
,/,
who/WP
resigned/VBD
to/TO
become/VB
president/NN
of/IN
Hercules/NNP
Aerospace/NNP
Co./NNP
,/,
Wilmington/NNP
,/,
Del/NNP
./.
Wall/NNP
Street/NNP
's/POS
takeover-stock/NN
speculators/NNS
yesterday/NN
suffered/VBD
their/PRP$
worst/JJS
bloodbath/NN
since/IN
the/DT
Black/NNP
Monday/NNP
crash/NN
of/IN
October/NNP
1987/CD
./.
Even/RB
as/IN
the/DT
stock/NN
market/NN
rebounded/VBD
from/IN
Friday/NNP
's/POS
190.58-point/JJ
rout/NN
,/,
takeover/NN
traders/NNS
were/VBD
hammered/VBN
by/IN
setbacks/NNS
in/IN
two/CD
big/JJ
airline/NN
takeover/NN
deals/NNS
./.
Some/DT
analysts/NNS
estimated/VBD
that/IN
paper/NN
losses/NNS
could/MD
total/VB
$/$
500/CD
million/CD
for/IN
the/DT
takeover/NN
traders/NNS
,/,
known/VBN
as/IN
risk/NN
arbitragers/NNS
,/,
or/CC
``/``
arbs/NNS
./.
''/''
Nearly/RB
all/DT
of/IN
the/DT
big/JJ
paper/NN
losses/NNS
were/VBD
caused/VBN
by/IN
declines/NNS
of/IN
more/JJR
than/IN
20/CD
%/NN
in/IN
two/CD
airline/NN
stocks/NNS
,/,
UAL/NNP
Corp./NNP
and/CC
AMR/NNP
Corp/NNP
./.
Wall/NNP
Street/NNP
's/POS
arbitrage/NN
desks/NNS
had/VBD
loaded/VBN
up/RB
on/IN
stocks/NNS
of/IN
both/DT
companies/NNS
after/IN
each/DT
had/VBD
received/VBN
takeover/NN
proposals/NNS
from/IN
investors/NNS
./.
The/DT
bid/NN
for/IN
UAL/NNP
came/VBD
from/IN
Marvis/NNP
Davis/NNP
of/IN
Beverly/NNP
Hills/NNPS
,/,
Calif./NNP
,/,
and/CC
the/DT
bid/NN
for/IN
AMR/NNP
came/VBD
from/IN
Donald/NNP
Trump/NNP
of/IN
New/NNP
York/NNP
./.
But/CC
in/IN
the/DT
wake/NN
of/IN
Friday/NNP
's/POS
announcement/NN
that/IN
a/DT
UAL/NNP
management-union/NN
group/NN
could/MD
n't/RB
obtain/VB
bank/NN
financing/NN
for/IN
its/PRP$
agreement/NN
to/TO
buy/VB
UAL/NNP
at/IN
$/$
300/CD
a/DT
share/NN
,/,
UAL/NNP
stock/NN
plunged/VBD
$/$
56.875/CD
yesterday/NN
to/TO
close/VB
at/IN
$/$
222.875/CD
a/DT
share/NN
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
of/IN
nearly/RB
2.3/CD
million/CD
shares/NNS
./.
On/IN
Friday/NNP
,/,
the/DT
stock/NN
did/VBD
n't/RB
trade/NN
after/IN
the/DT
buy-out/NN
group/NN
announced/VBD
its/PRP$
financing/NN
troubles/NNS
./.
That/DT
was/VBD
bad/JJ
enough/RB
for/IN
the/DT
arbs/NNS
./.
``/``
On/IN
balance/NN
,/,
the/DT
Street/NN
's/POS
biggest/JJS
position/NN
has/VBZ
been/VBN
UAL/NNP
,/,
mostly/RB
{/(
bought/VBD
}/)
in/IN
the/DT
$/$
280/CD
range/NN
,/,
''/''
said/VBD
Frank/NNP
Gallagher/NNP
,/,
director/NN
of/IN
Phoenix/NNP
Capital/NNP
Markets/NNPS
,/,
who/WP
follows/VBZ
arbitrage/NN
activity/NN
./.
But/CC
the/DT
arbs/NNS
were/VBD
quickly/RB
hit/VBN
with/IN
another/DT
dose/NN
of/IN
bad/JJ
news/NN
when/WRB
Mr./NNP
Trump/NNP
announced/VBD
that/IN
he/PRP
was/VBD
withdrawing/VBG
his/PRP$
proposal/NN
to/TO
buy/VB
AMR/NNP
at/IN
$/$
120/CD
a/DT
share/NN
./.
After/IN
trading/NN
in/IN
AMR/NNP
resumed/VBN
,/,
the/DT
stock/NN
fell/VBD
sharply/RB
to/TO
close/VB
at/IN
$/$
76.50/CD
a/DT
share/NN
,/,
down/RB
$/$
22.125/CD
on/IN
the/DT
day/NN
in/IN
Big/NNP
Board/NNP
composite/JJ
trading/NN
of/IN
more/JJR
than/IN
4.7/CD
million/CD
shares/NNS
./.
Mr./NNP
Gallagher/NNP
estimates/VBZ
that/IN
arbitragers/NNS
owned/VBD
the/DT
equivalent/NN
of/IN
nearly/RB
30/CD
%/NN
of/IN
UAL/NNP
's/POS
stock/NN
,/,
or/CC
about/IN
six/CD
million/CD
shares/NNS
,/,
indicating/VBG
losses/NNS
of/IN
about/IN
$/$
350/CD
million/CD
./.
He/PRP
estimates/VBZ
that/IN
arbs/NNS
own/VBP
the/DT
equivalent/NN
of/IN
about/IN
10/CD
%/NN
of/IN
AMR/NNP
's/POS
stock/NN
,/,
also/RB
about/IN
six/CD
million/CD
shares/NNS
,/,
indicating/VBG
an/DT
additional/JJ
$/$
130/CD
million/CD
in/IN
losses/NNS
./.
Several/JJ
other/JJ
stocks/NNS
owned/VBN
by/IN
takeover/NN
traders/NNS
continued/VBD
to/TO
fall/VB
./.
Many/JJ
takeover/NN
stocks/NNS
rebounded/VBD
somewhat/RB
yeterday/NN
,/,
but/CC
none/NN
made/VBD
up/RP
all/DT
of/IN
their/PRP$
sharp/JJ
declines/NNS
on/IN
Friday/NNP
./.
Despite/IN
the/DT
losses/NNS
,/,
there/EX
have/VBP
n't/RB
been/VBN
any/DT
reports/NNS
of/IN
arbitrage/NN
or/CC
brokerage/NN
firms/NNS
that/WDT
have/VBP
encountered/VBN
serious/JJ
financial/JJ
difficulties/NNS
./.
For/IN
most/JJS
takeover-stock/NN
traders/NNS
,/,
huge/JJ
profits/NNS
from/IN
booming/JJ
takeover/NN
activity/NN
last/JJ
year/NN
would/MD
provide/VB
a/DT
cushion/NN
against/IN
current/JJ
losses/NNS
./.
Arbitragers/NNS
at/IN
several/JJ
major/JJ
Wall/NNP
Street/NNP
securities/NNS
firms/NNS
said/VBD
that/IN
UAL/NNP
was/VBD
by/IN
far/RB
the/DT
biggest/JJS
stock/NN
position/NN
that/IN
they/PRP
owned/VBD
./.
They/PRP
also/RB
believe/VBP
that/IN
UAL/NNP
was/VBD
the/DT
biggest/JJS
position/NN
for/IN
most/JJS
other/JJ
arbs/NNS
./.
``/``
In/IN
the/DT
arbitrage/NN
community/NN
,/,
UAL/NNP
was/VBD
viewed/VBN
as/IN
being/VBG
a/DT
very/RB
safe/JJ
deal/NN
,/,
''/''
said/VBD
one/CD
trader/NN
./.
Arbs/NNS
believed/VBD
that/IN
major/JJ
banks/NNS
would/MD
easily/RB
finance/VB
the/DT
UAL/NNP
buy-out/NN
group/NN
's/POS
$/$
6.79/CD
billion/CD
bid/NN
,/,
and/CC
were/VBD
stunned/VBN
on/IN
Friday/NNP
when/WRB
the/DT
group/NN
could/MD
n't/RB
obtain/VB
the/DT
necessary/JJ
loans/NNS
./.
Several/JJ
traders/NNS
said/VBD
they/PRP
were/VBD
n't/RB
selling/VBG
UAL/NNP
shares/NNS
because/IN
they/PRP
believe/VBP
the/DT
buy-out/NN
group/NN
will/MD
be/VB
able/JJ
to/TO
obtain/VB
financing/NN
to/TO
complete/VB
the/DT
acquisition/NN
eventually/RB
,/,
although/IN
perhaps/RB
at/IN
a/DT
price/NN
of/IN
less/JJR
than/IN
$/$
300/CD
a/DT
share/NN
./.
Mr./NNP
Gallagher/NNP
thinks/VBZ
that/IN
much/JJ
of/IN
the/DT
heavy/JJ
trading/NN
in/IN
UAL/NNP
shares/NNS
was/VBD
``/``
one/CD
arb/NN
passing/VBG
it/PRP
on/RP
to/TO
another/DT
./.
I/PRP
do/VBP
n't/RB
think/VB
you/PRP
have/VBP
institutional/JJ
investors/NNS
buying/VBG
the/DT
stock/NN
./.
''/''
Gainers/NNS
among/IN
the/DT
arb/NN
's/POS
favorite/JJ
stocks/NNS
included/VBD
Hilton/NNP
Hotels/NNPS
Corp./NNP
,/,
which/WDT
rose/VBD
$/$
9.50/CD
a/DT
share/NN
to/TO
close/VB
at/IN
$/$
94.50/CD
in/IN
Big/NNP
Board/NNP
composite/JJ
trading/NN
,/,
and/CC
Warner/NNP
Communications/NNPS
Inc./NNP
,/,
which/WDT
rose/VBD
$/$
1.875/CD
to/TO
close/VB
at/IN
$/$
63.375/CD
./.
Hilton/NNP
is/VBZ
soliciting/VBG
bids/NNS
for/IN
some/DT
or/CC
all/DT
of/IN
its/PRP$
hotel/NN
and/CC
casino/NN
operations/NNS
;/:
Warner/NNP
is/VBZ
being/VBG
acquired/VBN
by/IN
Time/NN
Warner/NNP
Inc./NNP
,/,
which/WDT
already/RB
owns/VBZ
about/IN
58/CD
%/NN
of/IN
Warner/NNP
./.
The/DT
past/JJ
two/CD
trading/NN
days/NNS
,/,
while/IN
painful/JJ
,/,
have/VBP
n't/RB
been/VBN
as/RB
disastrous/JJ
for/IN
the/DT
arbs/NNS
as/IN
the/DT
October/NNP
1987/CD
market/NN
crash/NN
because/IN
takeover-related/JJ
stocks/NNS
have/VBP
n't/RB
dropped/VBN
as/RB
sharply/RB
as/IN
they/PRP
did/VBD
two/CD
years/NNS
ago/RB
,/,
and/CC
traders/NNS
are/VBP
n't/RB
as/RB
deeply/RB
in/IN
debt/NN
as/IN
they/PRP
were/VBD
then/RB
./.
On/IN
Friday/NNP
and/CC
yesterday/NN
,/,
the/DT
worst/JJS
price/NN
declines/NNS
among/IN
takeover-related/JJ
stocks/NNS
were/VBD
about/IN
20/CD
%/NN
,/,
with/IN
most/JJS
takeover/NN
stocks/NNS
falling/VBG
between/IN
5/CD
%/NN
and/CC
15/CD
%/NN
./.
In/IN
October/NNP
1987/CD
,/,
however/RB
,/,
stocks/NNS
of/IN
some/DT
potential/JJ
takeover/NN
targets/NNS
,/,
such/JJ
as/IN
Dayton/NNP
Hudson/NNP
Corp./NNP
,/,
fell/VBD
about/IN
50/CD
%/NN
,/,
Mr./NNP
Gallagher/NNP
said/VBD
./.
A/DT
trader/NN
at/IN
one/CD
major/JJ
Wall/NNP
Street/NNP
firm/NN
said/VBD
his/PRP$
arbitrage/NN
desk/NN
had/VBD
about/IN
30/CD
%/NN
of/IN
its/PRP$
capital/NN
currently/RB
invested/VBN
in/IN
cash/NN
./.
Two/CD
years/NNS
ago/RB
,/,
he/PRP
said/VBD
,/,
his/PRP$
firm/NN
had/VBD
borrowed/VBN
an/DT
amount/NN
equal/JJ
to/TO
about/IN
30/CD
%/NN
of/IN
its/PRP$
capital/NN
so/IN
that/IN
it/PRP
could/MD
buy/VB
more/JJR
stocks/NNS
./.
Mr./NNP
Gallagher/NNP
said/VBD
he/PRP
believes/VBZ
that/IN
situation/NN
is/VBZ
typical/JJ
of/IN
the/DT
more/RBR
conservative/JJ
strategies/NNS
that/IN
many/JJ
arbitragers/NNS
adopted/VBN
after/IN
the/DT
crash/NN
./.
When/WRB
traders/NNS
borrow/VBP
money/NN
to/TO
buy/VB
additional/JJ
amounts/NNS
of/IN
stock/NN
,/,
they/PRP
run/VBP
the/DT
risk/NN
of/IN
having/VBG
to/TO
sell/VB
stocks/NNS
after/IN
a/DT
sharp/JJ
price/NN
decline/NN
such/JJ
as/IN
yesterday/NN
's/POS
to/TO
meet/VB
margin/NN
calls/NNS
./.
Margin/NN
calls/NNS
are/VBP
demands/NNS
by/IN
lenders/NNS
that/IN
traders/NNS
put/VBN
up/RP
more/JJR
cash/NN
to/TO
make/VB
up/RB
for/IN
declines/NNS
in/IN
the/DT
value/NN
of/IN
stocks/NNS
that/WDT
serve/VBP
as/IN
collateral/NN
for/IN
loans/NNS
./.
One/CD
trader/NN
,/,
however/RB
,/,
said/VBD
he/PRP
believes/VBZ
that/IN
most/JJS
of/IN
the/DT
selling/NN
in/IN
takeover-related/JJ
stocks/NNS
in/IN
the/DT
past/JJ
two/CD
trading/NN
days/NNS
has/VBZ
been/VBN
the/DT
result/NN
of/IN
judgments/NNS
by/IN
traders/NNS
that/IN
takeover/NN
bids/NNS
are/VBP
less/RBR
likely/JJ
to/TO
be/VB
completed/VBN
,/,
rather/RB
than/IN
selling/NN
prompted/VBN
by/IN
margin/NN
calls/NNS
./.
Stocks/NNS
in/IN
which/WDT
`/``
risk/NN
arbitrage/NN
'/''
speculators/NNS
have/VBP
large/JJ
positions/NNS
In/IN
response/NN
to/TO
your/PRP$
extracts/NNS
from/IN
David/NNP
Fenton/NNP
's/POS
memo/NN
``/``
How/WRB
a/DT
PR/NNP
Firm/NN
Executed/VBD
the/DT
Alar/NN
Scare/NN
,/,
''/''
editorial/NN
page/NN
,/,
Oct./NNP
3/CD
the/DT
past/JJ
10/CD
years/NNS
,/,
the/DT
Environmental/NNP
Protection/NNP
Agency/NNP
has/VBZ
known/VBN
about/IN
the/DT
carcinogenic/JJ
hazards/NNS
of/IN
Alar/NN
,/,
and/CC
has/VBZ
carried/VBN
on/RP
proceedings/NNS
to/TO
remove/VB
the/DT
chemical/NN
from/IN
the/DT
market/NN
./.
Yet/RB
until/IN
recently/RB
,/,
no/DT
significant/JJ
progress/NN
had/VBD
occurred/VBN
because/IN
the/DT
pesticide/NN
manufacturers/NNS
and/CC
other/JJ
special/JJ
interests/NNS
have/VBP
blocked/VBN
necessary/JJ
congressional/JJ
reform/NN
,/,
stymied/VBN
EPA/NNP
actions/NNS
to/TO
cancel/VB
Alar/NNP
and/CC
other/JJ
hazardous/JJ
pesticides/NNS
,/,
and/CC
kept/VBN
the/DT
public/NN
in/IN
the/DT
dark/NN
about/IN
the/DT
threat/NN
of/IN
pesticides/NNS
./.
In/IN
this/DT
country/NN
,/,
major/JJ
reforms/NNS
occur/VBP
only/RB
when/WRB
substantial/JJ
public/JJ
pressure/NN
is/VBZ
applied/VBN
to/TO
the/DT
government/NN
and/CC
Congress/NNP
in/IN
order/NN
to/TO
counteract/VB
the/DT
lockhold/NN
of/IN
special/JJ
interests/NNS
./.
Therefore/RB
,/,
the/DT
Natural/NNP
Resources/NNPS
Defense/NNP
Council/NNP
specifically/RB
chose/VBD
to/TO
inform/VB
the/DT
public/NN
about/IN
the/DT
risks/NNS
posed/VBN
by/IN
pesticides/NNS
in/IN
foods/NNS
./.
To/TO
move/VB
the/DT
pesticide-reform/NN
agenda/NN
,/,
NRDC/NNP
--/:
like/IN
any/DT
major/JJ
corporation/NN
or/CC
the/DT
government/NN
--/:
used/VBN
the/DT
professional/JJ
communication/NN
skills/NNS
of/IN
a/DT
public-relations/NNS
firm/NN
to/TO
educate/VB
the/DT
public/NN
about/IN
the/DT
results/NNS
of/IN
our/PRP$
two-year-long/JJ
scientific/JJ
study/NN
on/IN
pesticides/NNS
residues/NNS
in/IN
children/NNS
's/POS
food/NN
./.
NRDC/NNP
offers/VBZ
no/DT
apologies/NNS
for/IN
making/VBG
public/RB
the/DT
results/NNS
of/IN
our/PRP$
report/NN
on/IN
pesticides/NNS
in/IN
the/DT
diet/NN
of/IN
preschoolers/NNS
./.
We/PRP
will/MD
continue/VB
to/TO
present/VB
the/DT
facts/NNS
about/IN
pesticides/NNS
in/IN
food/NN
to/TO
the/DT
broadest/JJS
possible/JJ
segment/NN
of/IN
society/NN
./.
Americans/NNPS
have/VBP
a/DT
right/NN
to/TO
know/VB
what/WP
is/VBZ
in/IN
their/PRP$
food/NN
and/CC
to/TO
do/VB
something/NN
about/IN
it/PRP
if/IN
they/PRP
choose/VBP
./.
Until/IN
the/DT
food/NN
supply/NN
is/VBZ
safe/JJ
,/,
especially/RB
for/IN
children/NNS
,/,
NRDC/NNP
will/MD
keep/VB
doing/VBG
everything/NN
we/PRP
can/MD
to/TO
educate/VB
the/DT
public/NN
about/IN
the/DT
unnecessary/JJ
and/CC
intolerable/JJ
risk/NN
of/IN
pesticides/NNS
./.
John/NNP
H./NNP
Adams/NNP
Executive/NN
Director/NN
National/NNP
Resources/NNPS
Defense/NNP
Council/NNP
New/NNP
York/NNP
Mr./NNP
Fenton/NNP
's/POS
PR/NNP
firm/NN
has/VBZ
abused/VBN
the/DT
trust/NN
of/IN
the/DT
media/NNS
and/CC
done/VBN
the/DT
public/NN
no/DT
favor/NN
./.
Just/RB
as/IN
you/PRP
can/MD
yell/VB
``/``
wolf/NN
''/''
only/RB
so/RB
many/JJ
times/NNS
before/IN
people/NNS
cease/VBP
to/TO
heed/VB
you/PRP
,/,
a/DT
PR/NNP
firm/NN
can/MD
manipulate/VB
the/DT
press/NN
only/RB
once/RB
,/,
and/CC
then/RB
it/PRP
loses/VBZ
all/DT
credibility/NN
./.
Such/JJ
firms/NNS
go/VBP
quickly/RB
bankrupt/JJ
./.
C./NNP
Brian/NNP
Maddox/NNP
New/NNP
York/NNP
I/PRP
was/VBD
fascinated/VBN
to/TO
read/VB
political/JJ
publicist/NN
David/NNP
Fenton/NNP
's/POS
self-serving/JJ
celebration/NN
of/IN
his/PRP$
own/JJ
work/NN
in/IN
creating/VBG
the/DT
illusion/NN
that/IN
Alar/NN
was/VBD
``/``
an/DT
intolerable/JJ
risk/NN
''/''
to/TO
Americans/NNPS
--/:
particularly/RB
American/NNP
children/NNS
--/:
when/WRB
used/VBN
on/IN
apples/JJ
./.
The/DT
one/CD
``/``
fact/NN
''/''
that/WDT
caught/VBD
my/PRP$
eye/NN
--/:
the/DT
alleged/VBN
$/$
700,000/CD
paid/VBN
by/IN
the/DT
apple/NN
growers/NNS
to/TO
Hill/NNP
&/CC
Knowlton/NNP
--/:
was/VBD
overstated/VBN
by/IN
more/JJR
than/IN
a/DT
factor/NN
of/IN
two/CD
./.
While/IN
I/PRP
doubt/VBP
the/DT
media/NNS
were/VBD
as/RB
gullible/JJ
and/CC
malleable/JJ
as/IN
Mr./NNP
Fenton/NNP
's/POS
memo/NN
suggests/VBZ
,/,
the/DT
Alar/NN
scare/NN
was/VBD
created/VBN
,/,
mostly/RB
out/IN
of/IN
thin/JJ
air/NN
,/,
just/RB
as/IN
Mr./NNP
Fenton/NNP
claims/VBZ
,/,
and/CC
the/DT
media/NNS
that/WDT
were/VBD
taken/VBN
in/RB
can/MD
learn/VB
something/NN
from/IN
this/DT
episode/NN
./.
So/RB
,/,
for/IN
that/DT
matter/NN
,/,
can/MD
other/JJ
industries/NNS
subject/JJ
to/TO
this/DT
kind/NN
of/IN
guerrilla/NN
PR/NNP
attack/NN
./.
Robert/NNP
L./NNP
Dilenschneider/NNP
President/NN
and/CC
CEO/NN
Hill/NNP
&/CC
Knowlton/NNP
Inc/NNP
./.
New/NNP
York/NNP
Mr./NNP
Fenton/NNP
says/VBZ
it/PRP
was/VBD
not/RB
the/DT
intent/NN
of/IN
the/DT
NRDC/NNP
to/TO
have/VB
school/NN
systems/NNS
ban/VB
apples/NNS
./.
Am/VBP
I/PRP
also/RB
to/TO
believe/VB
that/IN
Meryl/NNP
Streep/NNP
did/VBD
not/RB
intend/VB
to/TO
harm/VB
apple/NN
growers/NNS
by/IN
condemning/VBG
the/DT
use/NN
of/IN
Alar/NN
?/.
Well/RB
,/,
apple/NN
growers/NNS
were/VBD
hurt/VBN
and/CC
many/JJ
others/NNS
were/VBD
needlessly/RB
frightened/JJ
by/IN
this/DT
news/NN
story/NN
./.
Scientific/JJ
fact/NN
was/VBD
replaced/VBN
with/IN
media/NNS
hype/NN
produced/VBN
by/IN
genuinely/RB
concerned/JJ
but/CC
irrational/JJ
people/NNS
who/WP
created/VBD
a/DT
dangerous/JJ
phenomenon/NN
when/WRB
,/,
by/IN
using/VBG
bad/JJ
information/NN
and/CC
bad/JJ
logic/NN
,/,
they/PRP
skillfully/RB
frightened/VBD
people/NNS
about/IN
agricultural/JJ
chemicals/NNS
./.
My/PRP$
family/NN
and/CC
I/PRP
will/MD
continue/VB
to/TO
believe/VB
the/DT
FDA/NNP
,/,
USDA/NNP
,/,
EPA/NNP
and/CC
the/DT
surgeon/NN
general/NN
and/CC
follow/VB
their/PRP$
nutritional/JJ
guidelines/NNS
to/TO
eat/VB
a/DT
balanced/JJ
diet/NN
that/WDT
includes/VBZ
many/JJ
fresh/JJ
fruits/NNS
and/CC
vegetables/NNS
./.
Frederick/NNP
Walsifer/NNP
Jr/NNP
./.
Colts/NNP
Neck/NNP
,/,
N.J/NNP
./.
Influential/JJ
members/NNS
of/IN
the/DT
House/NNP
Ways/NNP
and/CC
Means/NNP
Committee/NNP
introduced/VBD
legislation/NN
that/WDT
would/MD
restrict/VB
how/WRB
the/DT
new/JJ
savings-and-loan/NN
bailout/NN
agency/NN
can/MD
raise/VB
capital/NN
,/,
creating/VBG
another/DT
potential/JJ
obstacle/NN
to/TO
the/DT
government/NN
's/POS
sale/NN
of/IN
sick/JJ
thrifts/NNS
./.
The/DT
bill/NN
,/,
whose/WP$
backers/NNS
include/VBP
Chairman/NNP
Dan/NNP
Rostenkowski/NNP
D./NNP
,/,
Ill./NNP
the/DT
Resolution/NNP
Trust/NNP
Corp./NNP
from/IN
raising/VBG
temporary/JJ
working/VBG
capital/NN
by/IN
having/VBG
an/DT
RTC-owned/JJ
bank/NN
or/CC
thrift/NN
issue/NN
debt/NN
that/WDT
would/MD
n't/RB
be/VB
counted/VBN
on/IN
the/DT
federal/JJ
budget/NN
./.
The/DT
bill/NN
intends/VBZ
to/TO
restrict/VB
the/DT
RTC/NNP
to/TO
Treasury/NNP
borrowings/NNS
only/RB
,/,
unless/IN
the/DT
agency/NN
receives/VBZ
specific/JJ
congressional/JJ
authorization/NN
./.
``/``
Such/JJ
agency/NN
`/``
self-help/NN
'/''
borrowing/NN
is/VBZ
unauthorized/JJ
and/CC
expensive/JJ
,/,
far/RB
more/RBR
expensive/JJ
than/IN
direct/JJ
Treasury/NNP
borrowing/NN
,/,
''/''
said/VBD
Rep./NNP
Fortney/NNP
Stark/NNP
D./NNP
,/,
Calif./NNP
the/DT
bill/NN
's/POS
chief/JJ
sponsor/NN
./.
The/DT
complex/JJ
financing/NN
plan/NN
in/IN
the/DT
S&L/NN
bailout/NN
law/NN
includes/VBZ
raising/VBG
$/$
30/CD
billion/CD
from/IN
debt/NN
issued/VBN
by/IN
the/DT
newly/RB
created/VBN
RTC/NNP
./.
This/DT
financing/NN
system/NN
was/VBD
created/VBN
in/IN
the/DT
new/JJ
law/NN
in/IN
order/NN
to/TO
keep/VB
the/DT
bailout/NN
spending/NN
from/IN
swelling/VBG
the/DT
budget/NN
deficit/NN
./.
Another/DT
$/$
20/CD
billion/CD
would/MD
be/VB
raised/VBN
through/IN
Treasury/NNP
bonds/NNS
,/,
which/WDT
pay/VBP
lower/JJR
interest/NN
rates/NNS
./.
But/CC
the/DT
RTC/NNP
also/RB
requires/VBZ
``/``
working/NN
''/''
capital/NN
to/TO
maintain/VB
the/DT
bad/JJ
assets/NNS
of/IN
thrifts/NNS
that/WDT
are/VBP
sold/VBN
,/,
until/IN
the/DT
assets/NNS
can/MD
be/VB
sold/VBN
separately/RB
./.
That/DT
debt/NN
would/MD
be/VB
paid/VBN
off/RP
as/IN
the/DT
assets/NNS
are/VBP
sold/VBN
,/,
leaving/VBG
the/DT
total/JJ
spending/NN
for/IN
the/DT
bailout/NN
at/IN
$/$
50/CD
billion/CD
,/,
or/CC
$/$
166/CD
billion/CD
including/VBG
interest/NN
over/IN
10/CD
years/NNS
./.
``/``
It/PRP
's/VBZ
a/DT
problem/NN
that/WDT
clearly/RB
has/VBZ
to/TO
be/VB
resolved/VBN
,/,
''/''
said/VBD
David/NNP
Cooke/NNP
,/,
executive/JJ
director/NN
of/IN
the/DT
RTC/NNP
./.
The/DT
agency/NN
has/VBZ
already/RB
spent/VBN
roughly/RB
$/$
19/CD
billion/CD
selling/VBG
34/CD
insolvent/JJ
S&Ls/NNS
,/,
and/CC
it/PRP
is/VBZ
likely/JJ
to/TO
sell/VB
or/CC
merge/VB
600/CD
by/IN
the/DT
time/NN
the/DT
bailout/NN
concludes/VBZ
./.
Absent/VB
other/JJ
working/NN
capital/NN
,/,
he/PRP
said/VBD
,/,
the/DT
RTC/NNP
would/MD
be/VB
forced/VBN
to/TO
delay/VB
other/JJ
thrift/NN
resolutions/NNS
until/IN
cash/NN
could/MD
be/VB
raised/VBN
by/IN
selling/VBG
the/DT
bad/JJ
assets/NNS
./.
``/``
We/PRP
would/MD
have/VB
to/TO
wait/VB
until/IN
we/PRP
have/VBP
collected/VBN
on/IN
those/DT
assets/NNS
before/IN
we/PRP
can/MD
move/VB
forward/RB
,/,
''/''
he/PRP
said/VBD
./.
The/DT
complicated/VBN
language/NN
in/IN
the/DT
huge/JJ
new/JJ
law/NN
has/VBZ
muddied/VBN
the/DT
fight/NN
./.
The/DT
law/NN
does/VBZ
allow/VB
the/DT
RTC/NNP
to/TO
borrow/VB
from/IN
the/DT
Treasury/NNP
up/IN
to/TO
$/$
5/CD
billion/CD
at/IN
any/DT
time/NN
./.
Moreover/RB
,/,
it/PRP
says/VBZ
the/DT
RTC/NNP
's/POS
total/JJ
obligations/NNS
may/MD
not/RB
exceed/VB
$/$
50/CD
billion/CD
,/,
but/CC
that/DT
figure/NN
is/VBZ
derived/VBN
after/IN
including/VBG
notes/NNS
and/CC
other/JJ
debt/NN
,/,
and/CC
subtracting/VBG
from/IN
it/PRP
the/DT
market/NN
value/NN
of/IN
the/DT
assets/NNS
the/DT
RTC/NNP
holds/VBZ
./.
But/CC
Congress/NNP
did/VBD
n't/RB
anticipate/VB
or/CC
intend/VB
more/JJR
public/JJ
debt/NN
,/,
say/VBP
opponents/NNS
of/IN
the/DT
RTC/NNP
's/POS
working-capital/JJ
plan/NN
,/,
and/CC
Rep./NNP
Charles/NNP
Schumer/NNP
D./NNP
,/,
N.Y/NNP
./.
the/DT
RTC/NNP
Oversight/NNP
Board/NNP
has/VBZ
been/VBN
remiss/JJ
in/IN
not/RB
keeping/VBG
Congress/NNP
informed/VBN
./.
``/``
That/DT
secrecy/NN
leads/VBZ
to/TO
a/DT
proposal/NN
like/IN
the/DT
one/CD
from/IN
Ways/NNP
and/CC
Means/NNP
,/,
which/WDT
seems/VBZ
to/TO
me/PRP
sort/NN
of/IN
draconian/JJ
,/,
''/''
he/PRP
said/VBD
./.
``/``
The/DT
RTC/NNP
is/VBZ
going/VBG
to/TO
have/VB
to/TO
pay/VB
a/DT
price/NN
of/IN
prior/JJ
consultation/NN
on/IN
the/DT
Hill/NNP
if/IN
they/PRP
want/VBP
that/DT
kind/NN
of/IN
flexibility/NN
./.
''/''
The/DT
Ways/NNP
and/CC
Means/NNP
Committee/NNP
will/MD
hold/VB
a/DT
hearing/NN
on/IN
the/DT
bill/NN
next/IN
Tuesday/NNP
./.
We/PRP
're/VBP
about/IN
to/TO
see/VB
if/IN
advertising/NN
works/VBZ
./.
Hard/RB
on/IN
the/DT
heels/NNS
of/IN
Friday/NNP
's/POS
190-point/JJ
stock-market/NN
plunge/NN
and/CC
the/DT
uncertainty/NN
that/WDT
's/VBZ
followed/VBN
,/,
a/DT
few/JJ
big/JJ
brokerage/NN
firms/NNS
are/VBP
rolling/VBG
out/RP
new/JJ
ads/NNS
trumpeting/VBG
a/DT
familiar/JJ
message/NN
:/:
Keep/VB
on/RP
investing/VBG
,/,
the/DT
market/NN
's/VBZ
just/RB
fine/JJ
./.
Their/PRP$
mission/NN
is/VBZ
to/TO
keep/VB
clients/NNS
from/IN
fleeing/VBG
the/DT
market/NN
,/,
as/IN
individual/JJ
investors/NNS
did/VBD
in/IN
droves/NNS
after/IN
the/DT
crash/NN
in/IN
October/NNP
Just/RB
days/NNS
after/IN
the/DT
1987/CD
crash/NN
,/,
major/JJ
brokerage/NN
firms/NNS
rushed/VBN
out/RP
ads/NNS
to/TO
calm/VB
investors/NNS
./.
This/DT
time/NN
around/RP
,/,
they/PRP
're/VBP
moving/VBG
even/RB
faster/RBR
./.
PaineWebber/NNP
Inc./NNP
filmed/VBD
a/DT
new/JJ
television/NN
commercial/NN
at/IN
4/CD
p.m./NN
EDT/NNP
yesterday/NN
and/CC
had/VBD
it/PRP
on/IN
the/DT
air/NN
by/IN
last/JJ
night/NN
./.
Fidelity/NNP
Investments/NNP
placed/VBD
new/JJ
ads/NNS
in/IN
newspapers/NNS
yesterday/NN
,/,
and/CC
wrote/VBD
another/DT
new/JJ
ad/NN
appearing/VBG
today/NN
./.
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
by/IN
yesterday/NN
afternoon/NN
had/VBD
already/RB
written/VBN
new/JJ
TV/NN
ads/NNS
./.
It/PRP
considered/VBD
running/VBG
them/PRP
during/IN
tomorrow/NN
night/NN
's/POS
World/NNP
Series/NNP
broadcast/NN
but/CC
decided/VBD
not/RB
to/TO
when/WRB
the/DT
market/NN
recovered/VBD
yesterday/NN
./.
Other/JJ
brokerage/NN
firms/NNS
,/,
including/VBG
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
,/,
were/VBD
plotting/VBG
out/RP
potential/JJ
new/JJ
ad/NN
strategies/NNS
./.
The/DT
brokerage/NN
firms/NNS
learned/VBD
a/DT
lesson/NN
the/DT
last/JJ
time/NN
around/RP
,/,
when/WRB
frightened/JJ
investors/NNS
flooded/VBD
the/DT
phone/NN
lines/NNS
and/CC
fled/VBD
the/DT
market/NN
in/IN
a/DT
panic/NN
./.
This/DT
time/NN
,/,
the/DT
firms/NNS
were/VBD
ready/JJ
./.
Fidelity/NNP
,/,
for/IN
example/NN
,/,
prepared/VBN
ads/NNS
several/JJ
months/NNS
ago/RB
in/IN
case/NN
of/IN
a/DT
market/NN
plunge/NN
./.
When/WRB
the/DT
market/NN
went/VBD
into/IN
its/PRP$
free/JJ
fall/NN
Friday/NNP
afternoon/NN
,/,
the/DT
investment/NN
firm/NN
ordered/VBD
full/JJ
pages/NNS
in/IN
the/DT
Monday/NNP
editions/NNS
of/IN
half/PDT
a/DT
dozen/NN
newspapers/NNS
./.
The/DT
ads/NNS
touted/VBD
Fidelity/NNP
's/POS
automated/VBN
800-number/NN
beneath/IN
the/DT
huge/JJ
headline/NN
,/,
``/``
Fidelity/NNP
Is/VBZ
Ready/JJ
For/IN
Your/PRP$
Call/NN
./.
''/''
A/DT
Fidelity/NNP
spokesman/NN
says/VBZ
the/DT
800-line/NN
,/,
which/WDT
already/RB
was/VBD
operating/VBG
but/CC
which/WDT
many/JJ
clients/NNS
did/VBD
n't/RB
know/VB
about/IN
,/,
received/VBN
about/RB
double/RB
the/DT
usual/JJ
volume/NN
of/IN
calls/NNS
over/IN
the/DT
weekend/NN
./.
``/``
A/DT
lot/NN
of/IN
investor/NN
confidence/NN
comes/VBZ
from/IN
the/DT
fact/NN
that/IN
they/PRP
can/MD
speak/VB
to/TO
us/PRP
,/,
''/''
he/PRP
says/VBZ
./.
``/``
To/TO
maintain/VB
that/DT
dialogue/NN
is/VBZ
absolutely/RB
crucial/JJ
./.
It/PRP
would/MD
have/VB
been/VBN
too/RB
late/JJ
to/TO
think/VB
about/IN
on/IN
Friday/NNP
./.
We/PRP
had/VBD
to/TO
think/VB
about/IN
it/PRP
ahead/RB
of/IN
time/NN
./.
''/''
Today/NN
's/POS
Fidelity/NNP
ad/NN
goes/VBZ
a/DT
step/NN
further/RBR
,/,
encouraging/VBG
investors/NNS
to/TO
stay/VB
in/IN
the/DT
market/NN
or/CC
even/RB
to/TO
plunge/VB
in/IN
with/IN
Fidelity/NNP
./.
Underneath/IN
the/DT
headline/NN
``/``
Diversification/NN
,/,
''/''
it/PRP
counsels/VBZ
,/,
``/``
Based/VBN
on/IN
the/DT
events/NNS
of/IN
the/DT
past/JJ
week/NN
,/,
all/DT
investors/NNS
need/VBP
to/TO
know/VB
their/PRP$
portfolios/NNS
are/VBP
balanced/VBN
to/TO
help/VB
protect/VB
them/PRP
against/IN
the/DT
market/NN
's/POS
volatility/NN
./.
''/''
It/PRP
goes/VBZ
on/RB
to/TO
plug/VB
a/DT
few/JJ
diversified/JJ
Fidelity/NNP
funds/NNS
by/IN
name/NN
./.
PaineWebber/NN
also/RB
was/VBD
able/JJ
to/TO
gear/VB
up/RP
quickly/RB
thanks/NNS
to/TO
the/DT
1987/CD
crash/NN
./.
In/IN
the/DT
aftermath/NN
of/IN
the/DT
1987/CD
debacle/NN
,/,
the/DT
brokerage/NN
firm/NN
began/VBD
taping/VBG
commercials/NNS
in-house/JJ
,/,
ultimately/RB
getting/VBG
its/PRP$
timing/NN
down/RP
fast/JJ
enough/RB
to/TO
tape/VB
a/DT
commercial/NN
after/IN
the/DT
market/NN
closed/VBN
and/CC
rush/VB
it/PRP
on/IN
the/DT
air/NN
that/DT
night/NN
./.
It/PRP
also/RB
negotiated/VBD
an/DT
arrangement/NN
with/IN
Cable/NNP
News/NNP
Network/NNP
under/IN
which/WDT
CNN/NNP
would/MD
agree/VB
to/TO
air/VB
its/PRP$
last-minute/JJ
creations/NNS
./.
The/DT
new/JJ
PaineWebber/NNP
commercial/NN
,/,
created/VBN
with/IN
ad/NN
agency/NN
Saatchi/NNP
&/CC
Saatchi/NNP
Co./NNP
,/,
features/VBZ
Mary/NNP
Farrell/NNP
,/,
one/CD
of/IN
the/DT
firm/NN
's/VBZ
most/RBS
visible/JJ
investment/NN
strategists/NNS
,/,
sounding/VBG
particularly/RB
bullish/JJ
./.
Taped/VBN
just/RB
as/IN
the/DT
market/NN
closed/VBD
yesterday/NN
,/,
it/PRP
offers/VBZ
Ms./NNP
Farrell/NNP
advising/NN
,/,
``/``
We/PRP
view/VBP
the/DT
market/NN
here/RB
as/IN
going/VBG
through/IN
a/DT
relatively/RB
normal/JJ
cycle/NN
.../:
./.
We/PRP
continue/VBP
to/TO
feel/VB
that/IN
the/DT
stock/NN
market/NN
is/VBZ
still/RB
the/DT
place/NN
to/TO
be/VB
for/IN
long-term/JJ
appreciation/NN
./.
''/''
The/DT
spot/NN
was/VBD
scheduled/VBN
to/TO
appear/VB
three/CD
times/NNS
on/IN
CNN/NNP
last/JJ
night/NN
./.
PaineWebber/NNP
considered/VBD
an/DT
even/RB
harder/JJR
sell/NN
,/,
recommending/VBG
specific/JJ
stocks/NNS
./.
Instead/RB
,/,
it/PRP
settled/VBD
on/RP
just/RB
urging/VBG
the/DT
clients/NNS
who/WP
are/VBP
its/PRP$
lifeline/NN
to/TO
keep/VB
that/DT
money/NN
in/IN
the/DT
market/NN
./.
``/``
We/PRP
're/VBP
saying/VBG
the/DT
worst/JJS
thing/NN
that/IN
anyone/NN
can/MD
do/VB
is/VBZ
to/TO
see/VB
the/DT
market/NN
go/VB
down/RB
and/CC
dump/VB
everything/NN
,/,
which/WDT
just/RB
drives/VBZ
the/DT
prices/NNS
down/IN
further/RBR
,/,
''/''
says/VBZ
John/NNP
Lampe/NNP
,/,
PaineWebber/NNP
's/POS
director/NN
of/IN
advertising/NN
./.
``/``
If/IN
you/PRP
owned/VBD
it/PRP
and/CC
liked/VBD
it/PRP
Friday/NNP
,/,
the/DT
true/JJ
value/NN
has/VBZ
n't/RB
changed/VBD
./.
''/''
He/PRP
adds/VBZ
,/,
``/``
This/DT
is/VBZ
n't/RB
1987/CD
revisited/VBN
./.
''/''
With/IN
the/DT
market/NN
fluctuating/VBG
and/CC
then/RB
closing/VBG
up/RB
more/RBR
than/IN
88/CD
points/NNS
yesterday/NN
,/,
investment/NN
firms/NNS
had/VBD
to/TO
constantly/RB
revise/VB
their/PRP$
approach/NN
./.
At/IN
Shearson/NNP
Lehman/NNP
,/,
executives/NNS
created/VBD
potential/JJ
new/JJ
commercials/NNS
Friday/NNP
night/NN
and/CC
throughout/IN
the/DT
weekend/NN
,/,
then/RB
had/VBD
to/TO
regroup/VB
yesterday/NN
afternoon/NN
./.
The/DT
plan/NN
had/VBD
been/VBN
to/TO
make/VB
one/CD
of/IN
Shearson/NNP
's/POS
easy-to-film/JJ
,/,
black-and-white/JJ
``/``
Where/WRB
We/PRP
Stand/VBP
''/''
commercials/NNS
,/,
which/WDT
have/VBP
been/VBN
running/VBG
occasionally/RB
in/IN
response/NN
to/TO
news/NN
events/NNS
since/IN
1985/CD
./.
The/DT
ad/NN
would/MD
have/VB
run/VBN
during/IN
the/DT
World/NNP
Series/NNP
tomorrow/NN
,/,
replacing/VBG
the/DT
debut/NN
commercial/NN
of/IN
Shearson/NNP
's/POS
new/JJ
ad/NN
campaign/NN
,/,
``/``
Leadership/NN
by/IN
Example/NN
./.
''/''
But/CC
in/IN
a/DT
meeting/NN
after/IN
the/DT
market/NN
closed/VBD
yesterday/NN
,/,
Shearson/NNP
executives/NNS
decided/VBD
not/RB
to/TO
go/VB
ahead/RB
with/IN
the/DT
stock-market/NN
ad/NN
./.
``/``
We/PRP
do/VBP
n't/RB
think/VB
at/IN
this/DT
point/NN
anything/NN
needs/VBZ
to/TO
be/VB
said/VBD
./.
The/DT
market/NN
seems/VBZ
to/TO
be/VB
straightening/VBG
out/RP
;/:
we/PRP
're/VBP
taking/VBG
a/DT
wait-and-see/JJ
attitude/NN
,/,
''/''
says/VBZ
Cathleen/NNP
B./NNP
Stewart/NNP
,/,
executive/JJ
vice/NN
president/NN
of/IN
marketing/NN
./.
In/IN
any/DT
case/NN
,/,
the/DT
brokerage/NN
firms/NNS
are/VBP
clearly/RB
moving/VBG
faster/RBR
to/TO
create/VB
new/JJ
ads/NNS
than/IN
they/PRP
did/VBD
in/IN
the/DT
fall/NN
of/IN
1987/CD
./.
But/CC
it/PRP
remains/VBZ
to/TO
be/VB
seen/VBN
whether/IN
their/PRP$
ads/NNS
will/MD
be/VB
any/DT
more/RBR
effective/JJ
./.
In/IN
1987/CD
,/,
despite/IN
a/DT
barrage/NN
of/IN
ads/NNS
from/IN
most/JJS
of/IN
the/DT
major/JJ
investment/NN
firms/NNS
,/,
individuals/NNS
ran/VBD
from/IN
the/DT
market/NN
en/FW
masse/FW
./.
Now/RB
the/DT
firms/NNS
must/MD
try/VB
their/PRP$
hardest/JJS
to/TO
prove/VB
that/DT
advertising/NN
can/MD
work/VB
this/DT
time/NN
around/RP
./.
Ad/NN
Notes/NNS
.../:
./.
ARNOLD/NNP
ADVERTISING/NNP
:/:
Edward/NNP
Eskandarian/NNP
,/,
former/JJ
chairman/NN
of/IN
Della/NNP
Femina/NNP
,/,
McNamee/NNP
WCRS\/Boston/NNP
,/,
reached/VBD
an/DT
agreement/NN
in/IN
principle/NN
to/TO
acquire/VB
a/DT
majority/JJ
stake/NN
in/IN
Arnold/NNP
Advertising/NNP
,/,
a/DT
small/JJ
Boston/NNP
shop/NN
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
Mr./NNP
Eskandarian/NNP
,/,
who/WP
resigned/VBD
his/PRP$
Della/NNP
Femina/NNP
post/NN
in/IN
September/NNP
,/,
becomes/VBZ
chairman/NN
and/CC
chief/JJ
executive/NN
of/IN
Arnold/NNP
./.
John/NNP
Verret/NNP
,/,
the/DT
agency/NN
's/POS
president/NN
and/CC
chief/JJ
executive/NN
,/,
will/MD
retain/VB
the/DT
title/NN
of/IN
president/NN
./.
Separately/NNP
,/,
McDonald/NNP
's/POS
Corp./NNP
,/,
Oak/NNP
Brook/NNP
,/,
Ill./NNP
,/,
named/VBD
Arnold/NNP
to/TO
handle/VB
its/PRP$
estimated/VBN
$/$
4/CD
million/CD
cooperative/JJ
ad/NN
account/NN
for/IN
the/DT
Hartford/NNP
,/,
Conn./NNP
,/,
area/NN
./.
That/DT
account/NN
had/VBD
been/VBN
handled/VBN
by/IN
Della/NNP
Femina/NNP
,/,
McNamee/NNP
WCRS/NNP
./.
EDUCATION/NN
ADS/NNS
:/:
A/DT
142-page/JJ
ad/NN
supplement/NN
to/TO
Business/NNP
Week/NNP
's/POS
special/JJ
``/``
Corporate/NNP
Elite/NNP
''/''
issue/NN
calls/VBZ
on/IN
business/NN
leaders/NNS
to/TO
use/VB
their/PRP$
clout/NN
to/TO
help/VB
solve/VB
the/DT
nation/NN
's/POS
education/NN
crisis/NN
./.
The/DT
supplement/NN
,/,
the/DT
largest/JJS
ever/RB
for/IN
the/DT
magazine/NN
,/,
includes/VBZ
ads/NNS
from/IN
52/CD
corporate/JJ
advertisers/NNS
and/CC
kicks/NNS
off/RP
a/DT
two-year/JJ
Business/NNP
Week/NNP
initiative/NN
on/IN
education/NN
./.
The/DT
magazine/NN
will/MD
distribute/VB
10/CD
%/NN
of/IN
the/DT
gross/JJ
revenues/NNS
from/IN
the/DT
supplement/NN
as/IN
grants/NNS
to/TO
innovative/JJ
teachers/NNS
./.
You/PRP
know/VBP
what/WP
the/DT
law/NN
of/IN
averages/NNS
is/VBZ
,/,
do/VBP
n't/RB
you/PRP
?/.
It/PRP
's/VBZ
what/WP
1/LS
we/PRP
are/VBP
like/JJ
,/,
well/RB
,/,
ourselves/PRP
rather/RB
than/IN
Bo/NNP
Jackson/NNP
;/:
2/LS
it/PRP
's/VBZ
possible/JJ
to/TO
drown/VB
in/IN
a/DT
lake/NN
that/WDT
averages/VBZ
two/CD
feet/NNS
deep/RB
;/:
and/CC
3/LS
10,000/CD
monkeys/NNS
placed/VBN
before/IN
10,000/CD
pianos/NNS
would/MD
produce/VB
1,118/CD
publishable/JJ
rock/NN
'n'/CC
roll/NN
tunes/NNS
./.
Baseball/NN
,/,
that/DT
game/NN
of/IN
the/DT
long/JJ
haul/NN
,/,
is/VBZ
the/DT
quintessential/JJ
sport/NN
of/IN
the/DT
mean/NN
,/,
and/CC
the/DT
mean/JJ
ol'/JJ
law/NN
caught/VBD
up/RP
with/IN
the/DT
San/NNP
Francisco/NNP
Giants/NNP
in/IN
the/DT
World/NNP
Series/NNP
last/JJ
weekend/NN
./.
The/DT
team/NN
that/WDT
dumped/VBD
runs/NNS
by/IN
the/DT
bushel/NN
on/IN
the/DT
Chicago/NNP
Cubs/NNP
in/IN
the/DT
National/NNP
League/NNP
playoffs/NNS
was/VBD
held/VBN
to/TO
just/RB
one/CD
in/IN
two/CD
games/NNS
by/IN
the/DT
home-team/JJ
Oakland/NNP
A/NNP
's/NNP
,/,
the/DT
gang/NN
that/WDT
had/VBD
been/VBN
done/VBN
unto/RP
similarly/RB
by/IN
the/DT
Los/NNP
Angeles/NNP
Dodgers/NNP
and/CC
Orel/NNP
Hershiser/NNP
in/IN
last/JJ
year/NN
's/POS
tournament/NN
./.
Morever/RB
,/,
much/JJ
of/IN
the/DT
damage/NN
was/VBD
accomplished/VBN
by/IN
A/NNP
's/NNP
who/WP
had/VBD
some/DT
catching/VBG
up/RP
to/TO
do/VB
./.
In/IN
game/NN
two/CD
,/,
on/IN
a/DT
cool/JJ
Sunday/NNP
evening/NN
in/IN
this/DT
land/NN
of/IN
perpetual/JJ
autumn/NN
,/,
a/DT
lot/NN
of/IN
the/DT
catching/VBG
up/RP
was/VBD
done/VBN
by/IN
the/DT
A/NNP
's/NNP
catcher/NN
,/,
Terry/NNP
Steinbach/NNP
./.
He/PRP
hit/VBD
a/DT
2-0/CD
pitch/NN
from/IN
Rick/NNP
Reuschel/NNP
into/IN
the/DT
left-field/JJ
stands/NNS
in/IN
inning/NN
four/CD
to/TO
stretch/VB
his/PRP$
team/NN
's/POS
lead/NN
from/IN
2-1/CD
to/TO
a/DT
decisive/JJ
5-1/CD
,/,
where/WRB
it/PRP
stayed/VBD
./.
So/RB
what/WP
if/IN
Steinbach/NNP
had/VBD
struck/VBN
just/RB
seven/CD
home/NN
runs/NNS
in/IN
130/CD
regular-season/JJ
games/NNS
,/,
and/CC
batted/VBD
in/IN
the/DT
seventh/JJ
position/NN
of/IN
the/DT
A/NNP
's/NNP
lineup/NN
./.
``/``
If/IN
you/PRP
get/VBP
your/PRP$
pitch/NN
,/,
and/CC
take/VBP
a/DT
good/JJ
swing/NN
,/,
anything/NN
can/MD
happen/VB
,/,
''/''
he/PRP
later/RBR
remarked/VBD
./.
On/IN
Saturday/NNP
night/NN
,/,
quite/RB
a/DT
few/JJ
of/IN
the/DT
boys/NNS
in/IN
green/NN
and/CC
gold/NN
salted/VBD
away/RB
successes/NNS
to/TO
salve/VB
the/DT
pain/NN
of/IN
past/JJ
and/CC
,/,
no/DT
doubt/NN
,/,
future/JJ
droughts/NNS
./.
Mark/NNP
McGwire/NNP
,/,
the/DT
big/JJ
,/,
red-haired/JJ
Oakland/NNP
first/JJ
baseman/NN
,/,
had/VBD
three/CD
hits/NNS
in/IN
four/CD
at/NN
bats/NNS
,/,
two/CD
more/JJR
than/IN
he/PRP
'd/VBD
had/VBN
in/IN
the/DT
five-game/JJ
Dodger/NNP
series/NN
in/IN
which/WDT
he/PRP
'd/MD
gone/VBN
1-for-17/NN
./.
The/DT
A-men/NNS
batting/VBG
Nos./NNS
6/CD
through/IN
9/CD
,/,
a.k.a./JJ
the/DT
``/``
bottom/NN
of/IN
the/DT
order/NN
,/,
''/''
got/VBD
seven/CD
of/IN
their/PRP$
team/NN
's/POS
11/CD
hits/NNS
and/CC
scored/VBD
four/CD
of/IN
its/PRP$
runs/NNS
in/IN
a/DT
5-0/CD
decision/NN
./.
Right-hander/JJ
Dave/NNP
Stewart/NNP
held/VBD
the/DT
Giants/NNP
to/TO
five/CD
hits/NNS
to/TO
account/VB
for/IN
the/DT
zero/NN
on/IN
the/DT
other/JJ
side/NN
of/IN
the/DT
Saturday/NNP
ledger/NN
./.
That/IN
he/PRP
was/VBD
the/DT
A/NNP
's/NNP
winningest/JJS
pitcher/NN
during/IN
its/PRP$
American/NNP
League/NNP
campaign/NN
with/IN
a/DT
21-9/CD
mark/NN
,/,
plus/IN
two/CD
wins/NNS
over/IN
Toronto/NNP
in/IN
the/DT
playoffs/NNS
,/,
indicates/VBZ
he/PRP
may/MD
have/VB
some/DT
evening/NN
up/RP
coming/VBG
,/,
but/CC
with/IN
the/DT
way/NN
his/PRP$
split-fingered/JJ
fastball/NN
is/VBZ
behaving/VBG
,/,
that/IN
might/MD
not/RB
be/VB
this/DT
week/NN
./.
The/DT
same/JJ
goes/VBZ
for/IN
Mike/NNP
Moore/NNP
,/,
another/DT
veteran/NN
who/WP
overcame/VBD
early/JJ
struggles/NNS
to/TO
permit/VB
the/DT
Giants/NNP
but/RB
a/DT
run/NN
and/CC
four/CD
hits/NNS
in/IN
seven/CD
innings/NNS
in/IN
Sunday/NNP
's/POS
contest/NN
./.
``/``
Every/DT
guy/NN
they/PRP
put/VBD
out/RB
there/RB
had/VBD
a/DT
better/JJR
split-finger/NN
than/IN
the/DT
guy/NN
before/RB
,/,
''/''
marveled/VBD
Giant/JJ
manager/NN
Roger/NNP
Craig/NNP
./.
He/PRP
's/VBZ
an/DT
ex-hurler/NN
who/WP
's/VBZ
one/CD
of/IN
the/DT
leading/VBG
gurus/NNS
of/IN
the/DT
fashionable/JJ
delivery/NN
,/,
which/WDT
looks/VBZ
like/IN
a/DT
fastball/NN
until/IN
it/PRP
dives/VBZ
beneath/IN
the/DT
lunging/VBG
bat/NN
./.
The/DT
upshot/NN
of/IN
the/DT
downshoot/NN
is/VBZ
that/IN
the/DT
A/NNP
's/NNP
go/VBP
into/IN
San/NNP
Francisco/NNP
's/POS
Candlestick/NNP
Park/NNP
tonight/RB
up/IN
two/CD
games/NNS
to/TO
none/NN
in/IN
the/DT
best-of-seven/JJ
fest/NN
./.
The/DT
stat/NN
to/TO
reckon/VB
with/RP
here/RB
says/VBZ
that/IN
about/RB
three/CD
of/IN
four/CD
clubs/NNS
29/CD
of/IN
39/CD
that/WDT
took/VBD
2-0/CD
Series/NNP
leads/NNS
went/VBD
on/RB
to/TO
win/VB
it/PRP
all/DT
./.
That/DT
's/VBZ
not/RB
an/DT
average/NN
to/TO
soothe/VB
Giant/NNP
rooters/NNS
./.
One/NN
might/MD
think/VB
that/IN
the/DT
home/NN
fans/NNS
in/IN
this/DT
Series/NNP
of/IN
the/DT
Subway/NNP
Called/VBN
BART/NNP
that/DT
's/VBZ
a/DT
better/JJR
name/NN
for/IN
a/DT
public/JJ
conveyance/NN
than/IN
``/``
Desire/NN
,/,
''/''
do/VBP
n't/RB
you/PRP
think/VBP
?/.
the/DT
proceedings/NNS
,/,
but/CC
they/PRP
observe/VBP
them/PRP
in/IN
relative/JJ
calm/NN
./.
Partisans/NNS
of/IN
the/DT
two/CD
combatants/NNS
sat/VBD
side/NN
by/IN
side/NN
in/IN
the/DT
49,000-plus/JJ
seats/NNS
of/IN
Oakland/NNP
Coliseum/NNP
,/,
and/CC
while/IN
they/PRP
cheered/VBD
their/PRP$
favorites/NNS
and/CC
booed/VBD
the/DT
opposition/NN
,/,
hostilities/NNS
advanced/VBD
no/DT
further/RBR
,/,
at/IN
least/JJS
as/RB
far/RB
as/IN
I/PRP
could/MD
see/VB
./.
A/DT
few/JJ
folks/NNS
even/RB
showed/VBD
up/RP
wearing/VBG
caps/NNS
bearing/VBG
the/DT
colors/NNS
and/CC
emblems/NNS
of/IN
both/DT
teams/NNS
./.
``/``
I/PRP
'm/VBP
for/IN
the/DT
Giants/NNP
today/NN
,/,
but/CC
only/RB
because/IN
they/PRP
lost/VBD
yesterday/NN
./.
I/PRP
love/VBP
'em/PRP
both/DT
./.
The/DT
only/JJ
thing/NN
I/PRP
'm/VBP
rooting/VBG
for/IN
is/VBZ
for/IN
the/DT
Series/NNP
to/TO
go/VB
seven/CD
games/NNS
,/,
''/''
said/VBD
David/NNP
Williams/NNP
,/,
a/DT
Sacramento/NNP
septuagenarian/NN
,/,
at/IN
the/DT
Coliseum/NN
before/IN
Sunday/NNP
's/POS
go/NN
./.
The/DT
above/JJ
represents/VBZ
a/DT
triumph/NN
of/IN
either/DT
apathy/NN
or/CC
civility/NN
./.
I/PRP
choose/VBP
to/TO
believe/VB
it/PRP
's/VBZ
the/DT
latter/JJ
,/,
although/IN
it/PRP
probably/RB
springs/VBZ
from/IN
the/DT
fact/NN
that/IN
just/RB
about/RB
everyone/NN
out/IN
here/RB
,/,
including/VBG
the/DT
A/NNP
's/NNP
and/CC
Giants/NNP
,/,
is/VBZ
originally/RB
from/IN
somewhere/RB
else/RB
./.
Suffice/VB
it/PRP
to/TO
say/VB
that/IN
if/IN
this/DT
were/VBD
a/DT
New/NNP
York/NNP
Yankees-Mets/JJ
series/NN
,/,
or/CC
one/CD
between/IN
the/DT
Chicago/NNP
Cubs/NNP
and/CC
White/NNP
Sox/NNP
(/(
hey/UH
,/,
it/PRP
's/VBZ
possible/JJ
)/)
,/,
you/PRP
'd/MD
need/VB
uniformed/JJ
police/NNS
in/IN
every/DT
other/JJ
seat/NN
to/TO
separate/VB
opposing/VBG
fans/NNS
,/,
and/CC
only/RB
the/DT
suicidal/JJ
would/MD
bifurcate/VB
their/PRP$
bonnets/NNS
./.
Anyway/RB
,/,
the/DT
A/NNP
's/NNP
gave/VBD
you/PRP
a/DT
lot/NN
of/IN
heroes/NNS
to/TO
root/VB
for/RP
./.
In/IN
the/DT
opening/JJ
game/NN
,/,
besides/IN
Steinbach/NNP
and/CC
Stewart/NNP
,/,
there/EX
was/VBD
Walt/NNP
Weiss/NNP
,/,
a/DT
twiggy-looking/JJ
,/,
second-year/JJ
shortstop/NN
who/WP
had/VBD
lost/VBN
a/DT
couple/NN
months/NNS
of/IN
the/DT
season/NN
to/TO
knee/NN
surgery/NN
./.
He/PRP
was/VBD
flawless/JJ
afield/RB
(/(
ditto/NN
in/IN
game/NN
two/CD
a/DT
runner/NN
along/IN
in/IN
the/DT
A/NNP
's/NNP
three-run/JJ
second/JJ
inning/NN
,/,
and/CC
homered/VBD
for/IN
his/PRP$
team/NN
's/POS
final/JJ
tally/NN
./.
Such/JJ
is/VBZ
his/PRP$
reputation/NN
among/IN
the/DT
East/NNP
Bay/NNP
Bashers/NNP
that/IN
when/WRB
he/PRP
hit/VBD
his/PRP$
first/JJ
career/NN
home/NN
run/NN
last/JJ
season/NN
,/,
the/DT
fan/NN
who/WP
caught/VBD
it/PRP
agreed/VBD
to/TO
turn/VB
the/DT
ball/NN
over/IN
to/TO
him/PRP
in/IN
return/NN
for/IN
an/DT
autograph/NN
./.
Not/RB
his/PRP$
autograph/NN
;/:
power-hitter/NN
McGwire/NN
's/POS
./.
An/DT
A/NNP
's/NNP
co-hero/NN
of/IN
the/DT
second/JJ
game/NN
was/VBD
Rickey/NNP
Henderson/NNP
,/,
who/WP
exemplifies/VBZ
the/DT
hot/JJ
side/NN
of/IN
the/DT
hot-cold/JJ
equation/NN
./.
He/PRP
smoked/VBD
Toronto/NNP
in/IN
the/DT
playoffs/NNS
with/IN
six/CD
hits/NNS
,/,
seven/CD
walks/NNS
and/CC
eight/CD
stolen/VBN
bases/NNS
in/IN
22/CD
at/IN
bats/NNS
,/,
and/CC
continued/VBD
that/DT
by/IN
going/VBG
3-for-3/JJ
at/IN
the/DT
plate/NN
Sunday/NNP
,/,
along/IN
with/IN
walking/VBG
,/,
stealing/VBG
a/DT
base/NN
and/CC
scoring/VBG
a/DT
run/NN
./.
``/``
When/WRB
you/PRP
're/VBP
in/IN
the/DT
groove/NN
,/,
you/PRP
see/VBP
every/DT
ball/NN
tremendously/RB
,/,
''/''
he/PRP
lectured/VBD
./.
The/DT
cold/JJ
guys/NNS
in/IN
the/DT
set/NN
were/VBD
Will/NNP
Clark/NNP
,/,
Kevin/NNP
Mitchell/NNP
and/CC
Matt/NNP
Williams/NNP
,/,
the/DT
Giants/NNP
'/POS
3-4-5/CD
hitters/NNS
./.
They/PRP
combined/VBD
for/IN
25/CD
hits/NNS
,/,
six/CD
home/NN
runs/NNS
and/CC
24/CD
runs/NNS
batted/VBN
in/RP
in/IN
the/DT
five/CD
games/NNS
against/IN
the/DT
Cubs/NNP
./.
They/PRP
went/VBD
a/DT
collective/JJ
5-for-24/CD
here/RB
,/,
with/IN
zero/CD
homers/NNS
and/CC
ribbies/NNS
./.
It/PRP
's/POS
that/DT
last/JJ
set/NN
of/IN
numbers/NNS
,/,
as/RB
much/JJ
as/IN
anything/NN
else/RB
,/,
that/WDT
gives/VBZ
the/DT
Giants/NNP
hope/NN
in/IN
the/DT
Series/NNP
games/NNS
to/TO
come/VB
./.
``/``
I/PRP
believe/VBP
in/IN
the/DT
law/NN
of/IN
averages/NNS
,/,
''/''
declared/VBD
San/NNP
Francisco/NNP
batting/NN
coach/NN
Dusty/NNP
Baker/NNP
after/IN
game/NN
two/CD
./.
``/``
I/PRP
'd/MD
rather/RB
see/VB
a/DT
so-so/JJ
hitter/NN
who/WP
's/VBZ
hot/JJ
come/VB
up/RP
for/IN
the/DT
other/JJ
side/NN
than/IN
a/DT
good/JJ
hitter/NN
who/WP
's/VBZ
cold/JJ
./.
''/''
But/CC
the/DT
old/JJ
Dodger/NNP
slugger/NN
wisely/RB
offered/VBD
no/DT
prediction/NN
about/IN
when/WRB
good/JJ
times/NNS
would/MD
return/VB
to/TO
his/PRP$
side/NN
./.
``/``
When/WRB
it/PRP
goes/VBZ
,/,
you/PRP
never/RB
know/VBP
when/WRB
you/PRP
'll/MD
get/VB
it/PRP
back/RB
,/,
''/''
he/PRP
said/VBD
./.
``/``
That/DT
's/VBZ
baseball/NN
./.
''/''
NCR/NNP
Corp./NNP
reported/VBD
a/DT
10/CD
%/NN
drop/NN
in/IN
third-quarter/JJ
net/JJ
income/NN
,/,
citing/VBG
intense/JJ
competition/NN
that/WDT
caused/VBD
its/PRP$
gross/JJ
profit/NN
margins/NNS
to/TO
dip/VB
./.
Net/JJ
income/NN
for/IN
the/DT
quarter/NN
fell/VBD
to/TO
$/$
93.1/CD
million/CD
from/IN
$/$
103.1/CD
million/CD
,/,
roughly/RB
what/WP
analysts/NNS
had/VBD
expected/VBN
./.
But/CC
per-share/JJ
profit/NN
dropped/VBD
only/RB
2/CD
%/NN
to/TO
$/$
1.23/CD
a/DT
share/NN
from/IN
$/$
1.26/CD
a/DT
share/NN
,/,
as/IN
the/DT
company/NN
continued/VBD
its/PRP$
stock/NN
buy-back/JJ
plan/NN
./.
Average/JJ
shares/NNS
outstanding/JJ
dropped/VBD
to/TO
75.8/CD
million/CD
from/IN
82.1/CD
million/CD
./.
Revenue/NN
fell/VBD
1/CD
%/NN
to/TO
$/$
1.39/CD
billion/CD
from/IN
$/$
1.41/CD
billion/CD
./.
The/DT
computer/NN
maker/NN
,/,
which/WDT
sells/VBZ
more/JJR
than/IN
half/NN
its/PRP$
goods/NNS
outside/IN
the/DT
U.S./NNP
,/,
also/RB
said/VBD
the/DT
negative/JJ
effect/NN
of/IN
a/DT
stronger/JJR
U.S./NNP
dollar/NN
will/MD
``/``
adversely/RB
affect/VB
''/''
its/PRP$
fourth-quarter/JJ
performance/NN
and/CC
``/``
make/VB
it/PRP
difficult/JJ
''/''
to/TO
better/VB
1988/CD
results/NNS
./.
NCR/NNP
said/VBD
revenue/NN
declined/VBD
both/DT
in/IN
the/DT
U.S./NNP
and/CC
overseas/RB
,/,
reflecting/VBG
a/DT
world-wide/JJ
softening/NN
of/IN
the/DT
computer/NN
markets/NNS
./.
The/DT
company/NN
,/,
however/RB
,/,
said/VBD
orders/NNS
in/IN
the/DT
U.S./NNP
showed/VBD
``/``
good/JJ
gains/NNS
''/''
during/IN
the/DT
latest/JJS
quarter/NN
./.
Analysts/NNS
estimate/VBP
those/DT
gains/NNS
at/IN
12/CD
%/NN
to/TO
13/CD
%/NN
,/,
a/DT
good/JJ
part/NN
of/IN
it/PRP
coming/VBG
from/IN
large/JJ
orders/NNS
placed/VBN
by/IN
a/DT
few/JJ
of/IN
NCR/NNP
's/POS
major/JJ
customers/NNS
./.
In/IN
addition/NN
to/TO
a/DT
general/JJ
slowing/NN
of/IN
the/DT
computer/NN
industry/NN
,/,
NCR/NNP
,/,
which/WDT
sells/VBZ
automated/VBN
teller/NN
machines/NNS
and/CC
computerized/VBN
cash/NN
registers/NNS
,/,
is/VBZ
also/RB
affected/VBN
by/IN
the/DT
retail/JJ
and/CC
financial/JJ
sectors/NNS
,/,
``/``
areas/NNS
of/IN
the/DT
economy/NN
that/WDT
have/VBP
generally/RB
not/RB
been/VBN
robust/JJ
,/,
''/''
notes/VBZ
Sanjiv/NNP
G./NNP
Hingorani/NNP
,/,
an/DT
analyst/NN
for/IN
Salomon/NNP
Brothers/NNP
Inc/NNP
./.
These/DT
factors/NNS
,/,
combined/VBN
with/IN
a/DT
strong/JJ
dollar/NN
,/,
should/MD
negatively/RB
affect/VB
the/DT
current/JJ
quarter/NN
's/POS
results/NNS
,/,
NCR/NNP
said/VBD
./.
In/IN
the/DT
year-earlier/JJ
fourth/JJ
quarter/NN
,/,
NCR/NNP
had/VBD
profit/NN
of/IN
$/$
149.6/CD
million/CD
,/,
or/CC
$/$
1.85/CD
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
1.8/CD
billion/CD
./.
Mr./NNP
Hingorani/NNP
said/VBD
he/PRP
lowered/VBD
his/PRP$
full-year/JJ
estimates/NNS
for/IN
1989/CD
to/TO
$/$
5.35/CD
a/DT
share/NN
from/IN
$/$
5.50/CD
a/DT
share/NN
./.
Revenue/NN
projections/NNS
were/VBD
slashed/VBN
to/TO
$/$
6.03/CD
billion/CD
from/IN
$/$
6.20/CD
billion/CD
./.
Last/JJ
year/NN
,/,
NCR/NNP
had/VBD
net/JJ
income/NN
of/IN
$/$
439.3/CD
million/CD
,/,
or/CC
$/$
5.33/CD
a/DT
share/NN
,/,
on/IN
$/$
5.99/CD
billion/CD
in/IN
revenue/NN
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
the/DT
company/NN
's/POS
earnings/NNS
fell/VBD
9/CD
%/NN
to/TO
$/$
264.6/CD
million/CD
,/,
or/CC
$/$
3.40/CD
a/DT
share/NN
,/,
from/IN
$/$
289.7/CD
million/CD
,/,
or/CC
$/$
3.49/CD
a/DT
share/NN
./.
Revenues/NNS
declined/VBD
1/CD
%/NN
to/TO
$/$
4.17/CD
billion/CD
from/IN
$/$
4.19/CD
billion/CD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/NN
trading/NN
yesterday/NN
,/,
NCR/NNP
shares/NNS
fell/VBD
75/CD
cents/NNS
to/TO
close/VB
at/IN
$/$
57/CD
./.
Concerning/VBG
your/PRP$
Sept./NNP
19/CD
article/NN
``/``
Wall/NNP
Street/NNP
Firms/NNP
Link/VBP
Analysts/NNP
'/POS
Pay/NN
to/TO
Performance/NN
,/,
''/''
I/PRP
'm/VBP
delighted/VBN
that/IN
Wall/NNP
Street/NNP
is/VBZ
finally/RB
tuning/VBG
in/RP
to/TO
the/DT
hard/JJ
,/,
cold/JJ
facts/NNS
of/IN
the/DT
real/JJ
working/NN
world/NN
./.
If/IN
the/DT
firms/NNS
are/VBP
serious/JJ
,/,
however/RB
,/,
why/WRB
limit/VB
the/DT
practice/NN
to/TO
the/DT
poor/JJ
,/,
maligned/VBN
analysts/NNS
whose/WP$
ability/NN
to/TO
see/VB
into/IN
the/DT
future/NN
is/VBZ
fragile/JJ
at/IN
best/RBS
?/.
Why/WRB
not/RB
extend/VB
the/DT
same/JJ
harsh/JJ
standards/NNS
to/TO
the/DT
sales/NNS
force/NN
,/,
and/CC
pay/VB
brokers/NNS
a/DT
base/NN
salary/NN
with/IN
annual/JJ
bonus/NN
based/VBN
on/IN
how/WRB
much/JJ
money/NN
they/PRP
made/VBD
for/IN
their/PRP$
clients/NNS
during/IN
the/DT
year/NN
?/.
That/DT
should/MD
stop/VB
a/DT
lot/NN
of/IN
account-churning/NN
,/,
and/CC
produce/VB
a/DT
stock/NN
market/NN
driven/VBN
only/RB
by/IN
professional/JJ
concern/NN
,/,
careful/JJ
thought/NN
and/CC
good/JJ
sense/NN
./.
Now/RB
,/,
would/MD
n't/RB
that/DT
be/VB
a/DT
novelty/NN
./.
Phyllis/NNP
Kyle/NNP
Stephenson/NNP
Newport/NNP
News/NNP
,/,
Va/NNP
./.
Steve/NNP
Clark/NNP
,/,
a/DT
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
trader/NN
,/,
reported/VBD
for/IN
work/NN
at/IN
5/CD
a.m./NN
,/,
two/CD
and/CC
a/DT
half/NN
hours/NNS
before/IN
the/DT
usual/JJ
Monday/NNP
morning/NN
strategy/NN
meeting/NN
./.
At/IN
Jefferies/NNP
&/CC
Co./NNP
,/,
J./NNP
Francis/NNP
Palamara/NNP
did/VBD
n't/RB
reach/VB
the/DT
office/NN
until/IN
5:30/CD
a.m./NN
,/,
but/CC
then/RB
he/PRP
had/VBD
been/VBN
up/RB
most/RBS
of/IN
the/DT
night/NN
at/IN
home/NN
./.
``/``
I/PRP
had/VBD
calls/NNS
all/DT
night/NN
long/RB
from/IN
the/DT
States/NNP
,/,
''/''
he/PRP
said/VBD
./.
``/``
I/PRP
was/VBD
woken/VBN
up/RP
every/DT
hour/NN
--/:
1:30/CD
,/,
2:30/CD
,/,
3:30/CD
,/,
4:30/CD
./.
People/NNS
are/VBP
looking/VBG
for/IN
possible/JJ
opportunities/NNS
to/TO
buy/VB
,/,
but/CC
nobody/NN
wants/VBZ
to/TO
stick/VB
their/PRP$
chin/NN
out/RP
./.
''/''
For/IN
many/JJ
of/IN
London/NNP
's/POS
securities/NNS
traders/NNS
,/,
it/PRP
was/VBD
a/DT
day/NN
that/WDT
started/VBD
nervously/RB
in/IN
the/DT
small/JJ
hours/NNS
./.
By/IN
lunchtime/NN
,/,
the/DT
selling/NN
was/VBD
at/IN
near-panic/JJ
fever/NN
./.
But/CC
as/IN
the/DT
day/NN
ended/VBD
in/IN
a/DT
frantic/JJ
Wall/NNP
Street-inspired/JJ
rally/NN
,/,
the/DT
City/NNP
breathed/VBD
a/DT
sigh/NN
of/IN
relief/NN
./.
So/IN
it/PRP
went/VBD
yesterday/NN
in/IN
the/DT
trading/NN
rooms/NNS
of/IN
London/NNP
's/POS
financial/JJ
district/NN
./.
In/IN
the/DT
wake/NN
of/IN
Wall/NNP
Street/NNP
's/POS
plunge/NN
last/JJ
Friday/NNP
,/,
the/DT
London/NNP
market/NN
was/VBD
considered/VBN
especially/RB
vulnerable/JJ
./.
And/CC
before/IN
the/DT
opening/NN
of/IN
trading/NN
here/RB
yesterday/NN
,/,
all/DT
eyes/NNS
were/VBD
on/IN
early/JJ
trading/NN
in/IN
Tokyo/NNP
for/IN
a/DT
clue/NN
as/IN
to/TO
how/WRB
widespread/JJ
the/DT
fallout/NN
might/MD
be/VB
./.
By/IN
the/DT
time/NN
trading/NN
officially/RB
got/VBD
under/IN
way/NN
at/IN
9/CD
a.m./NN
,/,
the/DT
news/NN
from/IN
Asia/NNP
was/VBD
in/RB
./.
And/CC
it/PRP
left/VBD
mixed/JJ
signals/NNS
for/IN
London/NNP
./.
Tokyo/NNP
stocks/NNS
closed/VBN
off/JJ
a/DT
significant/JJ
but/CC
less-than-alarming/JJ
1.8/CD
%/NN
on/IN
thin/JJ
volume/NN
;/:
Hong/NNP
Kong/NNP
stocks/NNS
declined/VBD
6.5/CD
%/NN
in/IN
orderly/JJ
trading/NN
./.
At/IN
Jefferies/NNP
'/POS
trading/VBG
room/NN
on/IN
Finsbury/NNP
Circus/NNP
,/,
a/DT
stately/JJ
circle/NN
at/IN
the/DT
edge/NN
of/IN
the/DT
financial/JJ
district/NN
,/,
desktop/NN
computer/NN
screens/NNS
displayed/VBD
the/DT
London/NNP
market/NN
's/POS
major/JJ
barometer/NN
--/:
the/DT
Financial/NNP
Times-Stock/NNP

Exchange/NNP
100/CD
Share/NNP
Index/NNP
./.
Red/JJ
figures/NNS
on/IN
the/DT
screens/NNS
indicated/VBD
falling/VBG
stocks/NNS
;/:
blue/JJ
figures/NNS
,/,
rising/VBG
stocks/NNS
./.
Right/RB
away/RB
,/,
the/DT
reds/NNS
outnumbered/VBD
the/DT
blues/NNS
,/,
80/CD
to/TO
20/CD
,/,
as/IN
the/DT
index/NN
opened/VBD
at/IN
2076.8/CD
,/,
off/IN
157.1/CD
points/NNS
,/,
or/CC
7/CD
%/NN
./.
``/``
I/PRP
see/VBP
concern/NN
,/,
but/CC
I/PRP
do/VBP
n't/RB
see/VB
any/DT
panic/NN
,/,
''/''
said/VBD
Mr./NNP
Palamara/NNP
,/,
a/DT
big/JJ
,/,
good-humored/JJ
New/NNP
York/NNP
native/NN
who/WP
runs/VBZ
the/DT
15-trader/JJ
office/NN
./.
The/DT
Jefferies/NNP
office/NN
,/,
a/DT
branch/NN
of/IN
the/DT
Los/NNP
Angeles-based/JJ
firm/NN
,/,
played/VBD
it/PRP
conservatively/RB
,/,
seeking/VBG
to/TO
avoid/VB
risk/NN
./.
``/``
This/DT
is/VBZ
not/RB
the/DT
sort/NN
of/IN
market/NN
to/TO
have/VB
a/DT
big/JJ
position/NN
in/IN
,/,
''/''
said/VBD
David/NNP
Smith/NNP
,/,
who/WP
heads/VBZ
trading/NN
in/IN
all/DT
non-U.S./JJ
stocks/NNS
./.
``/``
We/PRP
tend/VBP
to/TO
run/VB
a/DT
very/RB
tight/JJ
book/NN
./.
''/''
Jefferies/NNP
spent/VBD
most/JJS
of/IN
its/PRP$
energies/NNS
in/IN
the/DT
morning/NN
trying/VBG
to/TO
match/VB
buyers/NNS
and/CC
sellers/NNS
,/,
and/CC
there/EX
were/VBD
n't/RB
many/JJ
buyers/NNS
./.
``/``
All/DT
the/DT
takeover/NN
stocks/NNS
--/:
Scottish/NNP
&/CC
Newcastle/NNP
,/,
B.A.T/NNP
,/,
DRG/NNP
--/:
are/VBP
getting/VBG
pretty/RB
well/RB
pasted/VBN
this/DT
morning/NN
,/,
''/''
Mr./NNP
Smith/NNP
said/VBD
./.
Seconds/NNS
later/RBR
,/,
a/DT
7,500-share/JJ
``/``
sell/NN
''/''
order/NN
for/IN
Scottish/NNP
&/CC
Newcastle/NNP
came/VBD
in/RP
./.
For/IN
the/DT
third/JJ
time/NN
in/IN
15/CD
minutes/NNS
,/,
a/DT
trader/NN
next/JJ
to/TO
Mr./NNP
Smith/NNP
left/VBD
the/DT
no-smoking/JJ
area/NN
to/TO
have/VB
a/DT
cigarette/NN
./.
On/IN
the/DT
screens/NNS
,/,
only/RB
two/CD
forlorn/JJ
blue/JJ
figures/NNS
remained/VBD
,/,
but/CC
the/DT
index/NN
had/VBD
recovered/VBN
a/DT
few/JJ
points/NNS
and/CC
was/VBD
off/RB
about/RB
140/CD
./.
``/``
Because/IN
Tokyo/NNP
did/VBD
n't/RB
collapse/VB
,/,
let/VB
's/POS
pick/VB
up/IN
a/DT
little/JJ
stock/NN
,/,
''/''
Mr./NNP
Smith/NNP
said/VBD
./.
He/PRP
targeted/VBD
7,500/CD
shares/NNS
of/IN
Reuters/NNP
and/CC
punched/VBD
a/DT
button/NN
to/TO
call/VB
up/RP
on/IN
his/PRP$
screen/NN
other/JJ
dealers/NNS
'/POS
price/NN
quotes/NNS
./.
The/DT
vivid/JJ
yellow/JJ
figures/NNS
showed/VBD
the/DT
best/JJS
price/NN
at/IN
845/CD
pence/NN
,/,
(/(
$/$
13.27/CD
Mr./NNP
Smith/NNP
's/POS
traders/NNS
started/VBD
putting/VBG
out/RP
feelers/NNS
./.
But/CC
the/DT
market/NN
sensed/VBD
a/DT
serious/JJ
buyer/NN
on/IN
a/DT
day/NN
dominated/VBN
by/IN
selling/NN
,/,
and/CC
the/DT
quotes/NNS
immediately/RB
jumped/VBD
to/TO
850/CD
pence/NN
./.
``/``
When/WRB
I/PRP
want/VBP
to/TO
buy/VB
,/,
they/PRP
run/VBP
from/IN
you/PRP
--/:
they/PRP
keep/VBP
changing/VBG
their/PRP$
prices/NNS
,/,
''/''
Mr./NNP
Smith/NNP
said/VBD
./.
``/``
It/PRP
's/VBZ
very/RB
frustrating/JJ
./.
''/''
He/PRP
temporarily/RB
abandoned/VBD
his/PRP$
search/NN
for/IN
the/DT
Reuters/NNP
shares/NNS
./.
By/IN
this/DT
time/NN
,/,
it/PRP
was/VBD
4:30/CD
a.m./NN
in/IN
New/NNP
York/NNP
,/,
and/CC
Mr./NNP
Smith/NNP
fielded/VBD
a/DT
call/NN
from/IN
a/DT
New/NNP
York/NNP
customer/NN
wanting/VBG
an/DT
opinion/NN
on/IN
the/DT
British/JJ
stock/NN
market/NN
,/,
which/WDT
had/VBD
been/VBN
having/VBG
troubles/NNS
of/IN
its/PRP$
own/JJ
even/RB
before/IN
Friday/NNP
's/POS
New/NNP
York/NNP
market/NN
break/NN
./.
``/``
Fundamentally/RB
dangerous/JJ
.../:
,/,
''/''
Mr./NNP
Smith/NNP
said/VBD
,/,
almost/RB
in/IN
a/DT
whisper/NN
,/,
``/``
.../:
./.
fundamentally/RB
weak/JJ
.../:
fairly/RB
vulnerable/JJ
still/RB
.../:
extremely/RB
dangerously/RB
poised/VBN
.../:
we/PRP
're/VBP
in/IN
for/IN
a/DT
lot/NN
of/IN
turbulence/NN
.../:
./.
''/''
He/PRP
was/VBD
right/JJ
./.
By/IN
midday/NN
,/,
the/DT
London/NNP
market/NN
was/VBD
in/IN
full/JJ
retreat/NN
./.
``/``
It/PRP
's/VBZ
falling/VBG
like/IN
a/DT
stone/NN
,/,
''/''
said/VBD
Danny/NNP
Linger/NNP
,/,
a/DT
pit/NN
trader/NN
who/WP
was/VBD
standing/VBG
outside/IN
the/DT
London/NNP
International/NNP
Financial/NNP
Futures/NNP
Exchange/NNP
./.
Only/RB
half/NN
the/DT
usual/JJ
lunchtime/NN
crowd/NN
gathered/VBD
at/IN
the/DT
tony/JJ
Corney/NNP
&/CC
Barrow/NNP
wine/NN
bar/NN
on/IN
Old/NNP
Broad/NNP
Street/NNP
nearby/RB
./.
Conversation/NN
was/VBD
subdued/JJ
as/IN
most/JJS
patrons/NNS
watched/VBD
the/DT
latest/JJS
market/NN
statistics/NNS
on/IN
television/NN
./.
At/IN
12:49/CD
p.m./NN
,/,
the/DT
index/NN
hit/VBD
its/PRP$
low/JJ
,/,
2029.7/CD
,/,
off/IN
204.2/CD
points/NNS
./.
``/``
France/NNP
opened/VBD
the/DT
limit/NN
down/RB
,/,
off/IN
at/IN
least/JJS
10/CD
%/NN
if/IN
you/PRP
could/MD
calculate/VB
the/DT
index/NN
,/,
which/WDT
you/PRP
could/MD
n't/RB
,/,
''/''
Mr./NNP
Clark/NNP
,/,
the/DT
Shearson/NNP
trader/NN
,/,
said/VBD
early/RB
in/IN
the/DT
afternoon/NN
./.
``/``
Spain/NNP
is/VBZ
down/RB
10/CD
%/NN
and/CC
suspended/VBN
,/,
Sweden/NNP
's/VBZ
down/RB
8/CD
%/NN
,/,
Norway/NNP
11/CD
%/NN
./.
This/DT
market/NN
has/VBZ
been/VBN
very/RB
badly/RB
damaged/VBN
./.
''/''
As/IN
2:30/CD
p.m./NN
--/:
Wall/NNP
Street/NNP
's/POS
opening/VBG
time/NN
--/:
neared/VBD
,/,
Shearson/NNP
traders/NNS
and/CC
salesmen/NNS
traded/VBD
bets/NNS
on/IN
how/WRB
low/JJ
the/DT
New/NNP
York/NNP
market/NN
would/MD
open/VB
./.
In/IN
the/DT
center/NN
of/IN
the/DT
trading/NN
floor/NN
,/,
chief/JJ
trader/NN
Roger/NNP
Streeter/NNP
and/CC
two/CD
colleagues/NNS
scrambled/VBD
for/IN
the/DT
telephones/NNS
as/RB
soon/RB
as/IN
the/DT
New/NNP
York/NNP
market/NN
opened/VBD
--/:
plummeting/VBG
more/RBR
than/IN
60/CD
points/NNS
in/IN
the/DT
first/JJ
few/JJ
minutes/NNS
./.
They/PRP
saw/VBD
an/DT
opportunity/NN
created/VBN
by/IN
the/DT
sell-off/NN
./.
As/IN
Wall/NNP
Street/NNP
traders/NNS
dumped/VBD
American/NNP
Depositary/NNP
Receipts/NNP
in/IN
Jaguar/NNP
PLC/NNP
,/,
Mr./NNP
Streeter/NNP
and/CC
trader/NN
Sam/NNP
Ruiz/NNP
bought/VBD
them/PRP
to/TO
resell/VB
in/IN
the/DT
U.K/NNP
./.
Investors/NNS
here/RB
still/RB
expect/VB
Ford/NNP
Motor/NNP
Co./NNP
or/CC
General/NNP
Motors/NNP
Corp./NNP
to/TO
bid/VB
for/IN
Jaguar/NNP
./.
Suddenly/RB
,/,
after/IN
about/RB
45/CD
minutes/NNS
,/,
the/DT
U.S./NNP
markets/NNS
rallied/VBD
./.
``/``
The/DT
MMI/NNP
has/VBZ
gone/VBN
better/RBR
,/,
''/''
shouted/VBD
one/CD
trader/NN
at/IN
about/RB
3:15/CD
London/NNP
time/NN
,/,
as/IN
the/DT
U.S./NNP
Major/NNP
Markets/NNP
Index/NNP
contract/NN
suddenly/RB
indicated/VBD
a/DT
turnabout/NN
./.
As/IN
Wall/NNP
Street/NNP
strengthened/VBD
,/,
the/DT
London/NNP
trading/NN
room/NN
went/VBD
wild/JJ
./.
Traders/NNS
shouted/VBD
as/IN
their/PRP$
screens/NNS
posted/VBD
an/DT
ever-narrowing/JJ
loss/NN
on/IN
Wall/NNP
Street/NNP
./.
Then/RB
,/,
nine/CD
minutes/NNS
later/RBR
,/,
Wall/NNP
Street/NNP
suddenly/RB
rebounded/VBD
to/TO
a/DT
gain/NN
on/IN
the/DT
day/NN
./.
``/``
Rally/NN
!/.
Rally/NN
!/.
Rally/NN
!/.
''/''
shouted/VBD
Shearson/NNP
trader/NN
Andy/NNP
Rosen/NNP
,/,
selling/VBG
more/JJR
Jaguar/NNP
shares/NNS
./.
``/``
This/DT
is/VBZ
panic/NN
buying/NN
!/.
''/''
As/IN
the/DT
London/NNP
market/NN
rallied/VBD
,/,
some/DT
wondered/VBD
whether/IN
the/DT
weekend/NN
of/IN
worrying/VBG
and/CC
jitters/NNS
had/VBD
been/VBN
worth/JJ
it/PRP
./.
The/DT
London/NNP
index/NN
closed/VBD
at/IN
2163.4/CD
,/,
its/PRP$
high/NN
for/IN
the/DT
day/NN
,/,
off/IN
70.5/CD
,/,
or/CC
about/RB
3.3/CD
%/NN
./.
Ambassador/NNP
Paul/NNP
Nitze/NNP
's/POS
statement/NN
Notable/NNP
&/CC
Quotable/NNP
,/,
Sept./NNP
20/CD
you/PRP
have/VBP
a/DT
million/CD
people/NNS
working/VBG
for/IN
you/PRP
,/,
every/DT
bad/JJ
thing/NN
that/WDT
has/VBZ
one/CD
chance/NN
in/IN
a/DT
million/CD
of/IN
going/VBG
wrong/NN
will/MD
go/VB
wrong/JJ
at/IN
least/JJS
once/IN
a/DT
year/NN
,/,
''/''
is/VBZ
a/DT
pretty/RB
negative/JJ
way/NN
of/IN
looking/VBG
at/IN
things/NNS
./.
Is/VBZ
n't/RB
it/PRP
just/RB
as/RB
fair/JJ
to/TO
say/VB
that/IN
if/IN
you/PRP
have/VBP
a/DT
million/CD
people/NNS
working/VBG
for/IN
you/PRP
,/,
every/DT
good/JJ
thing/NN
that/WDT
has/VBZ
one/CD
chance/NN
in/IN
a/DT
million/CD
of/IN
going/VBG
right/NN
will/MD
go/VB
right/RB
at/IN
least/JJS
once/IN
a/DT
year/NN
?/.
Do/VBP
n't/RB
be/VB
such/JJ
a/DT
pessimist/NN
,/,
Mr./NNP
Ambassador/NNP
./.
Frank/NNP
Tremdine/NNP
South/NNP
Bristol/NNP
,/,
Maine/NNP
The/DT
House/NNP
Aviation/NNP
Subcommittee/NNP
approved/VBD
a/DT
bill/NN
that/WDT
would/MD
give/VB
the/DT
transportation/NN
secretary/NN
authority/NN
to/TO
review/VB
and/CC
approve/VB
leveraged/VBN
buy-outs/NNS
of/IN
major/JJ
U.S./NNP
airlines/NNS
./.
The/DT
collapsed/VBN
plan/NN
to/TO
acquire/VB
UAL/NNP
Corp./NNP
,/,
parent/NN
of/IN
United/NNP
Airlines/NNP
,/,
spurred/VBD
quick/JJ
action/NN
on/IN
the/DT
legislation/NN
,/,
introduced/VBD
Wednesday/NNP
and/CC
approved/VBD
by/IN
the/DT
subcommittee/NN
on/IN
a/DT
voice/NN
vote/NN
yesterday/NN
./.
The/DT
bill/NN
is/VBZ
expected/VBN
to/TO
be/VB
taken/VBN
up/RP
by/IN
the/DT
Public/NNP
Works/NNP
and/CC
Transportation/NNP
Committee/NNP
tomorrow/NN
,/,
and/CC
a/DT
floor/NN
vote/NN
by/IN
next/JJ
week/NN
will/MD
be/VB
urged/VBN
./.
The/DT
measure/NN
drew/VBD
criticism/NN
from/IN
the/DT
Bush/NNP
administration/NN
and/CC
a/DT
parting/VBG
shot/NN
from/IN
financier/NN
Donald/NNP
Trump/NNP
,/,
who/WP
yesterday/NN
withdrew/VBD
his/PRP$
takeover/NN
bid/NN
for/IN
AMR/NNP
Corp./NNP
,/,
the/DT
parent/NN
of/IN
American/NNP
Airlines/NNP
./.
In/IN
a/DT
letter/NN
to/TO
subcommittee/NN
Chairman/NNP
James/NNP
Oberstar/NNP
D./NNP
,/,
Minn./NNP
Mr./NNP
Trump/NNP
criticized/VBD
the/DT
bill/NN
as/IN
an/DT
explicit/JJ
effort/NN
to/TO
thwart/VB
his/PRP$
bid/NN
for/IN
AMR/NNP
,/,
and/CC
said/VBD
it/PRP
contributed/VBD
to/TO
the/DT
collapse/NN
of/IN
the/DT
deal/NN
./.
Elaine/NNP
Chao/NNP
,/,
deputy/NN
transportation/NN
secretary/NN
,/,
also/RB
sent/VBD
a/DT
letter/NN
to/TO
express/VB
the/DT
administration/NN
's/POS
opposition/NN
to/TO
the/DT
bill/NN
``/``
in/IN
its/PRP$
present/JJ
form/NN
./.
''/''
Rep./NNP
Oberstar/NNP
brushed/VBD
off/RP
Mr./NNP
Trump/NNP
's/POS
allegations/NNS
as/IN
an/DT
``/``
excuse/NN
for/IN
his/PRP$
own/JJ
deal/NN
failing/VBG
./.
''/''
He/PRP
also/RB
said/VBD
the/DT
fact/NN
that/IN
the/DT
other/JJ
letter/NN
had/VBD
n't/RB
come/VBN
from/IN
Transportation/NNP
Secretary/NNP
Samuel/NNP
Skinner/NNP
indicated/VBD
there/EX
is/VBZ
``/``
wiggle/NN
room/NN
''/''
in/IN
the/DT
administration/NN
's/POS
position/NN
./.
Mr./NNP
Oberstar/NNP
and/CC
other/JJ
committee/NN
members/NNS
repeatedly/RB
stressed/VBD
that/IN
the/DT
legislation/NN
was/VBD
n't/RB
a/DT
response/NN
to/TO
any/DT
particular/JJ
market/NN
situation/NN
./.
But/CC
they/PRP
cited/VBD
the/DT
UAL/NNP
and/CC
AMR/NNP
examples/NNS
as/IN
reasons/NNS
to/TO
move/VB
quickly/RB
to/TO
enact/VB
this/DT
legislation/NN
./.
Aides/NNS
both/DT
in/IN
the/DT
House/NNP
and/CC
Senate/NNP
said/VBD
the/DT
withdrawal/NN
of/IN
the/DT
Trump/NNP
bid/NN
for/IN
AMR/NNP
is/VBZ
n't/RB
likely/JJ
to/TO
deflate/VB
efforts/NNS
to/TO
push/VB
the/DT
legislation/NN
./.
``/``
It/PRP
's/VBZ
still/RB
on/IN
the/DT
fast/JJ
track/NN
and/CC
we/PRP
still/RB
want/VBP
to/TO
do/VB
it/PRP
,/,
''/''
said/VBD
one/CD
Senate/NNP
aide/NN
./.
The/DT
bill/NN
is/VBZ
aimed/VBN
at/IN
addressing/VBG
the/DT
concern/NN
that/IN
an/DT
airline/NN
might/MD
sacrifice/VB
costly/JJ
safety/NN
measures/NNS
to/TO
pay/VB
off/RP
the/DT
debt/NN
incurred/VBN
in/IN
a/DT
leveraged/VBN
buy-out/NN
./.
Currently/RB
,/,
the/DT
transportation/NN
secretary/NN
does/VBZ
n't/RB
have/VB
clearly/RB
established/VBN
authority/NN
to/TO
block/NN
mergers/NNS
,/,
but/CC
can/MD
take/VB
the/DT
drastic/JJ
step/NN
of/IN
revoking/VBG
the/DT
operating/NN
certificate/NN
of/IN
any/DT
carrier/NN
the/DT
official/NN
considers/VBZ
unfit/JJ
./.
Supporters/NNS
of/IN
the/DT
legislation/NN
view/VBP
the/DT
bill/NN
as/IN
an/DT
effort/NN
to/TO
add/VB
stability/NN
and/CC
certainty/NN
to/TO
the/DT
airline-acquisition/JJ
process/NN
,/,
and/CC
to/TO
preserve/VB
the/DT
safety/NN
and/CC
fitness/NN
of/IN
the/DT
industry/NN
./.
In/IN
general/JJ
,/,
the/DT
bill/NN
would/MD
give/VB
the/DT
Transportation/NNP
Department/NNP
a/DT
30-day/JJ
review/NN
period/NN
before/IN
15/CD
%/NN
or/CC
more/JJR
of/IN
the/DT
voting/NN
stock/NN
of/IN
a/DT
major/JJ
U.S./NNP
air/NN
carrier/NN
could/MD
be/VB
acquired/VBN
./.
It/PRP
also/RB
would/MD
require/VB
the/DT
acquiring/VBG
party/NN
to/TO
notify/VB
the/DT
transportation/NN
secretary/NN
and/CC
to/TO
provide/VB
all/DT
information/NN
relevant/JJ
to/TO
determining/VBG
the/DT
intent/NN
of/IN
the/DT
acquisition/NN
./.
The/DT
bill/NN
would/MD
allow/VB
the/DT
secretary/NN
to/TO
reject/VB
a/DT
buy-out/NN
if/IN
sufficient/JJ
information/NN
has/VBZ
n't/RB
been/VBN
provided/VBN
,/,
or/CC
if/IN
the/DT
buy-out/NN
is/VBZ
likely/JJ
to/TO
weaken/VB
the/DT
carrier/NN
financially/RB
,/,
result/VB
in/IN
a/DT
substantial/JJ
reduction/NN
in/IN
size/NN
of/IN
the/DT
airline/NN
through/IN
disposal/NN
of/IN
assets/NNS
,/,
or/CC
give/VB
control/NN
to/TO
a/DT
foreign/JJ
interest/NN
./.
If/IN
more/JJR
information/NN
is/VBZ
needed/VBN
,/,
the/DT
secretary/NN
would/MD
have/VB
authority/NN
to/TO
extend/VB
the/DT
review/NN
period/NN
20/CD
days/NNS
./.
All/DT
the/DT
witnesses/NNS
,/,
both/DT
congressmen/NNS
and/CC
industry/NN
experts/NNS
,/,
expressed/VBD
support/NN
for/IN
the/DT
bill/NN
in/IN
order/NN
to/TO
prevent/VB
profiteers/NNS
from/IN
cashing/VBG
in/RP
on/IN
airline/NN
profits/NNS
at/IN
the/DT
expense/NN
of/IN
safe/JJ
,/,
cost-effective/JJ
service/NN
./.
But/CC
several/JJ
committee/NN
members/NNS
disapproved/VBD
,/,
some/DT
backing/VBG
Mr./NNP
Trump/NNP
's/POS
claim/NN
that/IN
the/DT
threat/NN
of/IN
regulation/NN
caused/VBD
the/DT
failure/NN
of/IN
the/DT
UAL/NNP
deal/NN
and/CC
the/DT
stock-market/NN
plunge/NN
./.
One/CD
of/IN
the/DT
major/JJ
concerns/NNS
expressed/VBN
by/IN
the/DT
dissenters/NNS
was/VBD
that/IN
large/JJ
airlines/NNS
would/MD
be/VB
prohibited/VBN
from/IN
divesting/VBG
themselves/PRP
of/IN
smaller/JJR
entities/NNS
and/CC
producing/VBG
independent/JJ
spin-off/JJ
companies/NNS
./.
In/IN
a/DT
possible/JJ
prelude/NN
to/TO
the/DT
resumption/NN
of/IN
talks/NNS
between/IN
Boeing/NNP
Co./NNP
and/CC
striking/VBG
Machinists/NNS
union/NN
members/NNS
,/,
a/DT
federal/JJ
mediator/NN
said/VBD
representatives/NNS
of/IN
the/DT
two/CD
sides/NNS
will/MD
meet/VB
with/IN
him/PRP
tomorrow/NN
./.
``/``
It/PRP
could/MD
be/VB
a/DT
long/JJ
meeting/NN
or/CC
it/PRP
could/MD
be/VB
a/DT
short/JJ
one/CD
,/,
''/''
said/VBD
Doug/NNP
Hammond/NNP
,/,
the/DT
mediator/NN
,/,
who/WP
called/VBD
the/DT
agreement/NN
to/TO
meet/VB
a/DT
first/JJ
step/NN
toward/IN
a/DT
resumption/NN
of/IN
negotiations/NNS
./.
``/``
We/PRP
're/VBP
encouraged/VBN
that/IN
talks/NNS
are/VBP
scheduled/VBN
again/RB
but/CC
beyond/IN
that/DT
,/,
we/PRP
have/VBP
made/VBN
no/DT
expression/NN
of/IN
expectations/NNS
,/,
''/''
a/DT
Boeing/VBG
spokesman/NN
said/VBD
./.
The/DT
Machinists/NNP
union/NN
has/VBZ
rejected/VBN
a/DT
three-year/JJ
contract/NN
offer/NN
that/WDT
would/MD
have/VB
provided/VBN
a/DT
10/CD
%/NN
wage/NN
increase/NN
over/IN
the/DT
life/NN
of/IN
the/DT
pact/NN
,/,
plus/CC
some/DT
bonuses/NNS
./.
Currently/RB
,/,
average/JJ
pay/NN
for/IN
machinists/NNS
is/VBZ
$/$
13.39/CD
an/DT
hour/NN
,/,
Boeing/VBG
said/VBD
./.
Now/RB
in/IN
its/PRP$
13th/JJ
day/NN
,/,
the/DT
strike/NN
has/VBZ
idled/VBN
about/RB
55,000/CD
machinists/NNS
and/CC
has/VBZ
started/VBN
to/TO
delay/VB
delivery/NN
of/IN
some/DT
jetliners/NNS
./.
With/IN
a/DT
strike/NN
fund/NN
of/IN
about/RB
$/$
100/CD
million/CD
,/,
the/DT
union/NN
had/VBD
said/VBD
it/PRP
was/VBD
prepared/VBN
for/IN
a/DT
long/JJ
strike/NN
./.
After/IN
the/DT
third/JJ
week/NN
on/IN
strike/NN
,/,
union/NN
members/NNS
will/MD
begin/VB
receiving/VBG
$/$
100/CD
a/DT
week/NN
from/IN
the/DT
fund/NN
./.
Work/NN
at/IN
Boeing/NNP
continues/VBZ
with/IN
supervisors/NNS
and/CC
other/JJ
non-striking/JJ
personnel/NNS
manning/VBG
the/DT
lines/NNS
./.
And/CC
at/IN
the/DT
company/NN
's/POS
Wichita/NNP
,/,
Kan./NNP
,/,
plant/NN
,/,
about/RB
2,400/CD
of/IN
the/DT
11,700/CD
machinists/NNS
still/RB
are/VBP
working/VBG
,/,
Boeing/NNP
said/VBD
./.
Under/IN
Kansas/NNP
right-to-work/JJ
laws/NNS
,/,
contracts/NNS
can/MD
not/RB
require/VB
workers/NNS
to/TO
be/VB
union/NN
members/NNS
./.
Boeing/NNP
has/VBZ
declined/VBN
to/TO
say/VB
how/WRB
many/JJ
employees/NNS
are/VBP
working/VBG
at/IN
its/PRP$
giant/JJ
Renton/NNP
,/,
Wash./NNP
,/,
plant/NN
./.
Union/NN
officials/NNS
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
DPC/NNP
Acquisition/NNP
Partners/NNP
,/,
a/DT
hostile/JJ
suitor/NN
for/IN
Dataproducts/NNP
Corp./NNP
,/,
said/VBD
it/PRP
intends/VBZ
to/TO
launch/VB
a/DT
tender/NN
offer/NN
for/IN
the/DT
computer/NN
printer/NN
maker/NN
's/POS
common/JJ
stock/NN
./.
DPC/NNP
,/,
a/DT
group/NN
led/VBD
by/IN
the/DT
New/NNP
York/NNP
investment/NN
firm/NN
Crescott/NNP
Inc./NNP
,/,
also/RB
said/VBD
it/PRP
plans/VBZ
to/TO
file/VB
preliminary/JJ
materials/NNS
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
regarding/VBG
a/DT
shareholder/NN
solicitation/NN
to/TO
oust/VB
Dataproducts/NNP
'/POS
board/NN
./.
DPC/NNP
holds/VBZ
a/DT
7.8/CD
%/NN
stake/NN
in/IN
Dataproducts/NNP
and/CC
made/VBD
a/DT
$/$
15-a-share/JJ
bid/NN
for/IN
the/DT
company/NN
in/IN
May/NNP
,/,
but/CC
Dataproducts/NNP
management/NN
considered/VBD
the/DT
$/$
283.7/CD
million/CD
proposal/NN
unacceptable/JJ
./.
A/DT
DPC/NNP
spokesman/NN
declined/VBD
to/TO
elaborate/VB
on/IN
the/DT
group/NN
's/POS
new/JJ
plan/NN
./.
In/IN
American/NNP
Stock/NNP
Exchange/NNP
composite/NN
trading/NN
yesterday/NN
,/,
Dataproducts/NNP
shares/NNS
jumped/VBD
62.5/CD
cents/NNS
to/TO
close/VB
at/IN
$/$
9.375/CD
./.
Dataproducts/NNP
,/,
which/WDT
had/VBD
been/VBN
seeking/VBG
a/DT
buyer/NN
for/IN
several/JJ
months/NNS
,/,
announced/VBD
a/DT
restructuring/NN
plan/NN
in/IN
September/NNP
and/CC
took/VBD
itself/PRP
off/IN
the/DT
auction/NN
block/NN
./.
The/DT
company/NN
's/POS
restructuring/NN
includes/VBZ
plans/NNS
to/TO
split/VB
into/IN
three/CD
sectors/NNS
,/,
to/TO
phase/NN
out/IN
domestic/JJ
printer/NN
manufacturing/VBG
operations/NNS
and/CC
to/TO
sell/VB
its/PRP$
New/NNP
England/NNP
subsidiary/NN
./.
As/IN
part/NN
of/IN
the/DT
plan/NN
,/,
Dataproducts/NNP
announced/VBD
a/DT
pact/NN
to/TO
sell/VB
$/$
63/CD
million/CD
of/IN
its/PRP$
real/JJ
estate/NN
holdings/NNS
to/TO
Trizec/NNP
Properties/NNP
Inc./NNP
,/,
a/DT
unit/NN
of/IN
Canada/NNP
's/POS
Trizec/NNP
Corp/NNP
./.
Jack/NNP
Davis/NNP
,/,
Dataproducts/NNP
'/POS
president/NN
,/,
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
said/VBD
the/DT
company/NN
``/``
is/VBZ
at/IN
a/DT
loss/NN
to/TO
understand/VB
DPC/NNP
's/POS
intentions/NNS
./.
''/''
He/PRP
called/VBD
today/NN
's/POS
announcement/NN
``/``
opportunistic/JJ
and/CC
disruptive/JJ
''/''
and/CC
said/VBD
the/DT
company/NN
intends/VBZ
to/TO
proceed/VB
with/IN
its/PRP$
restructuring/NN
./.
Share/NN
prices/NNS
plummeted/VBD
across/IN
Europe/NNP
yesterday/NN
in/IN
response/NN
to/TO
Friday/NNP
's/POS
New/NNP
York/NNP
sell-off/NN
,/,
but/CC
some/DT
issues/NNS
staged/VBD
a/DT
late/JJ
comeback/NN
after/IN
Wall/NNP
Street/NNP
opened/VBD
without/IN
another/DT
rout/NN
./.
European/JJ
investors/NNS
have/VBP
further/JJ
reason/NN
for/IN
optimism/NN
today/NN
,/,
after/IN
the/DT
U.S./NNP
rebound/NN
./.
The/DT
Frankfurt/NNP
Stock/NNP
Exchange/NNP
,/,
which/WDT
closed/VBD
before/IN
the/DT
New/NNP
York/NNP
exchanges/NNS
opened/VBD
,/,
was/VBD
the/DT
hardest/JJS
hit/NN
of/IN
the/DT
major/JJ
European/JJ
markets/NNS
,/,
with/IN
the/DT
DAX/NNP
Index/NNP
dropping/VBG
12.8/CD
%/NN
./.
In/IN
London/NNP
,/,
prices/NNS
plummeted/VBD
in/IN
early/JJ
trading/NN
and/CC
were/VBD
off/JJ
as/RB
much/JJ
as/IN
9/CD
%/NN
before/IN
coming/VBG
back/RB
strong/JJ
after/IN
the/DT
New/NNP
York/NNP
opening/NN
to/TO
close/VB
down/RB
only/RB
3.2/CD
%/NN
./.
West/JJ
German/JJ
Economics/NNP
Minister/NNP
Helmut/NNP
Haussmann/NNP
said/VBD
,/,
``/``
In/IN
my/PRP$
view/NN
,/,
the/DT
stock/NN
market/NN
will/MD
stabilize/VB
relatively/RB
quickly/RB
./.
There/EX
may/MD
be/VB
one/CD
or/CC
other/JJ
psychological/JJ
or/CC
technical/JJ
reactions/NNS
,/,
but/CC
they/PRP
are/VBP
n't/RB
based/VBN
on/IN
fundamentals/NNS
./.
The/DT
economy/NN
of/IN
West/NNP
Germany/NNP
and/CC
the/DT
EC/NNP
European/NNP
Community/NNP
''/''
Paris/NNP
,/,
which/WDT
has/VBZ
been/VBN
the/DT
center/NN
of/IN
speculation/NN
fever/NN
in/IN
recent/JJ
weeks/NNS
,/,
also/RB
was/VBD
hard/RB
hit/VBN
./.
Share/NN
prices/NNS
fell/VBD
in/IN
Milan/NNP
,/,
Amsterdam/NNP
,/,
Zurich/NNP
,/,
Madrid/NNP
and/CC
Stockholm/NNP
./.
Prices/NNP
in/IN
Brussels/NNP
,/,
where/WRB
a/DT
computer/NN
breakdown/NN
disrupted/VBD
trading/NN
,/,
also/RB
tumbled/VBD
./.
Following/VBG
is/VBZ
a/DT
breakdown/NN
of/IN
major/JJ
market/NN
activity/NN
:/:
FRANKFURT/NNP
:/:
One/CD
of/IN
the/DT
sharpest/JJS
declines/NNS
came/VBD
in/IN
the/DT
financial/JJ
center/NN
of/IN
Europe/NNP
's/POS
strongest/JJS
economy/NN
./.
The/DT
DAX/NNP
Index/NNP
of/IN
30/CD
West/JJ
German/JJ
blue/JJ
chips/NNS
plunged/VBD
12.8/CD
%/NN
,/,
a/DT
one-day/JJ
record/NN
,/,
wiping/VBG
out/RP
the/DT
summer/NN
's/POS
gains/NNS
./.
The/DT
index/NN
closed/VBD
at/IN
1385.72/CD
,/,
down/RB
203.56/CD
points/NNS
./.
By/IN
comparison/NN
,/,
two/CD
years/NNS
ago/RB
on/IN
Black/NNP
Monday/NNP
,/,
the/DT
new/JJ
index/NN
would/MD
have/VB
dropped/VBN
9.4/CD
%/NN
,/,
according/VBG
to/TO
a/DT
projection/NN
by/IN
the/DT
exchange/NN
./.
Investors/NNS
may/MD
have/VB
reacted/VBD
so/RB
strongly/RB
to/TO
Friday/NNP
's/POS
U.S./NNP
stock/NN
market/NN
loss/NN
because/IN
they/PRP
had/VBD
vivid/JJ
memories/NNS
of/IN
the/DT
Frankfurt/NNP
exchange/NN
's/POS
losing/VBG
35/CD
%/NN
of/IN
its/PRP$
value/NN
in/IN
the/DT
1987/CD
crash/NN
and/CC
its/PRP$
wake/NN
./.
This/DT
time/NN
,/,
however/RB
,/,
many/JJ
small/JJ
investors/NNS
may/MD
have/VB
been/VBN
hurt/VBN
by/IN
acting/VBG
so/RB
swiftly/RB
./.
``/``
They/PRP
all/DT
went/VBD
in/IN
the/DT
wrong/JJ
direction/NN
,/,
''/''
said/VBD
Andreas/NNP
Insam/NNP
,/,
an/DT
investment/NN
adviser/NN
for/IN
the/DT
Bank/NNP
in/IN
Liechtenstein/NNP
's/POS
Frankfurt/NNP
branch/NN
./.
He/PRP
said/VBD
he/PRP
told/VBD
clients/NNS
to/TO
buy/VB
selected/VBN
West/JJ
German/JJ
blue/JJ
chips/NNS
after/IN
they/PRP
fell/VBD
by/IN
about/RB
10/CD
%/NN
./.
After/IN
the/DT
opening/NN
was/VBD
delayed/VBN
30/CD
minutes/NNS
because/RB
of/IN
the/DT
crush/NN
of/IN
sell/NN
orders/NNS
,/,
Frankfurt/NNP
's/POS
normal/JJ
two-hour/JJ
trading/NN
session/NN
was/VBD
extended/VBN
75/CD
minutes/NNS
to/TO
handle/VB
the/DT
heavy/JJ
volume/NN
./.
``/``
The/DT
beginning/NN
was/VBD
chaotic/JJ
,/,
''/''
said/VBD
Nigel/NNP
Longley/NNP
,/,
a/DT
broker/NN
for/IN
Commerzbank/NNP
AG/NNP
./.
``/``
It/PRP
took/VBD
three-quarters/NNS
of/IN
an/DT
hour/NN
before/IN
enough/JJ
prices/NNS
could/MD
be/VB
worked/VBN
out/RP
to/TO
get/VB
a/DT
reading/NN
on/IN
the/DT
market/NN
./.
''/''
Institutional/JJ
investors/NNS
and/CC
bankers/NNS
,/,
many/DT
of/IN
whom/WP
spent/VBD
the/DT
night/NN
before/RB
in/IN
their/PRP$
offices/NNS
watching/VBG
Far/JJ
Eastern/JJ
markets/NNS
,/,
were/VBD
cautiously/RB
optimistic/JJ
after/IN
the/DT
mild/JJ
1.8/CD
%/NN
decline/NN
in/IN
Tokyo/NNP
stock/NN
prices/NNS
./.
``/``
Everybody/NN
was/VBD
still/RB
confident/JJ
,/,
including/VBG
most/JJS
institutional/JJ
investors/NNS
./.
That/DT
is/VBZ
why/WRB
everybody/NN
was/VBD
a/DT
little/RB
surprised/VBN
by/IN
the/DT
storm/NN
of/IN
sell/NN
orders/NNS
from/IN
small/JJ
private/JJ
investors/NNS
,/,
''/''
said/VBD
Norbert/NNP
Braeuer/NNP
,/,
a/DT
senior/JJ
trader/NN
for/IN
Hessische/NNP
Landesbank/NNP
./.
Some/DT
big/JJ
institutions/NNS
,/,
including/VBG
banks/NNS
,/,
began/VBD
picking/VBG
up/RP
lower-priced/JJ
shares/NNS
late/RB
yesterday/NN
,/,
but/CC
most/JJS
investors/NNS
wanted/VBD
to/TO
see/VB
what/WP
would/MD
happen/VB
in/IN
New/NNP
York/NNP
before/IN
acting/VBG
./.
But/CC
even/RB
if/IN
Wall/NNP
Street/NNP
continues/VBZ
to/TO
stabilize/VB
,/,
analysts/NNS
here/RB
say/VBP
the/DT
latest/JJS
blow/NN
to/TO
investor/NN
confidence/NN
could/MD
inhibit/VB
a/DT
swift/NN
recovery/NN
for/IN
the/DT
Frankfurt/NNP
exchange/NN
,/,
which/WDT
already/RB
was/VBD
showing/VBG
signs/NNS
of/IN
weakness/NN
after/IN
the/DT
DAX/NNP
had/VBD
slipped/VBN
from/IN
a/DT
1989/CD
high/NN
of/IN
1657.61/CD
on/IN
Sept./NNP
8/CD
./.
Some/DT
of/IN
West/NNP
Germany/NNP
's/POS
bluest/JJS
chips/NNS
took/VBD
some/DT
of/IN
the/DT
biggest/JJS
hits/NNS
./.
A/DT
16.3/CD
%/NN
drop/NN
for/IN
Mannesmann/NNP
AG/NNP
and/CC
Dresdner/NNP
Bank/NNP
AG/NNP
's/POS
9.6/CD
%/NN
decline/NN
were/VBD
especially/RB
problematic/JJ
for/IN
their/PRP$
respective/JJ
boards/NNS
,/,
whose/WP$
plans/NNS
for/IN
major/JJ
rights/NNS
issues/NNS
in/IN
November/NNP
could/MD
now/RB
be/VB
in/IN
jeopardy/NN
./.
Dresdner/NNP
Bank/NNP
last/JJ
month/NN
said/VBD
it/PRP
hoped/VBD
to/TO
raise/VB
1.2/CD
billion/CD
marks/NNS
$/$
642.2/CD
million/CD
four/CD
million/CD
shares/NNS
at/IN
300/CD
marks/NNS
each/DT
./.
Yet/RB
yesterday/NN
's/POS
market/NN
cropped/VBD
Dresdner/NNP
's/POS
share/NN
price/NN
by/IN
33/CD
marks/NNS
to/TO
309/CD
marks/NNS
a/DT
share/NN
,/,
leaving/VBG
little/JJ
incentive/NN
for/IN
investors/NNS
to/TO
subscribe/VB
to/TO
the/DT
standing/NN
price/NN
unless/IN
the/DT
market/NN
recovers/VBZ
quickly/RB
./.
LONDON/NNP
:/:
Headed/VBN
toward/IN
a/DT
record/NN
drop/NN
at/IN
midday/NN
,/,
the/DT
London/NNP
stock/NN
market/NN
recouped/VBD
two-thirds/NNS
of/IN
its/PRP$
losses/NNS
in/IN
the/DT
wake/NN
of/IN
New/NNP
York/NNP
's/POS
early/JJ
rally/NN
./.
The/DT
Financial/NNP
Times-Stock/NNP
Exchange/NNP
100/CD
Share/NNP
Index/NNP
closed/VBD
off/IN
70.5/CD
points/NNS
,/,
at/IN
2163.4/CD
,/,
its/PRP$
high/NN
for/IN
the/DT
day/NN
,/,
after/IN
having/VBG
plunged/VBD
204.2/CD
points/NNS
at/IN
12:49/CD
p.m/NN
./.
It/PRP
was/VBD
big/JJ
institutions/NNS
such/JJ
as/IN
Norwich/NNP
Union/NNP
Insurance/NNP
Group/NNP
,/,
Scottish/NNP
Amicable/NNP
Investment/NNP
Managers/NNP
and/CC
Standard/NNP
Life/NNP
Assurance/NNP
Co./NNP
that/WDT
spearheaded/VBD
the/DT
rally/NN
./.
Attracted/VBN
by/IN
low/JJ
prices/NNS
and/CC
encouraged/VBN
by/IN
New/NNP
York/NNP
's/POS
performance/NN
,/,
they/PRP
scooped/VBD
up/RP
equities/NNS
across/IN
the/DT
board/NN
./.
Volume/NN
was/VBD
959.3/CD
million/CD
shares/NNS
,/,
more/JJR
than/IN
triple/JJ
recent/JJ
levels/NNS
./.
PARIS/NNP
:/:
Late/JJ
buying/NN
gave/VBD
the/DT
Paris/NNP
Bourse/NNP
a/DT
parachute/NN
after/IN
its/PRP$
free/JJ
fall/NN
early/RB
in/IN
the/DT
day/NN
./.
The/DT
CAC/NNP
General/NNP
Index/NNP
ended/VBD
down/RB
5.4/CD
%/NN
at/IN
523.6/CD
,/,
a/DT
drop/NN
of/IN
29.6/CD
points/NNS
from/IN
Friday/NNP
./.
``/``
There/EX
was/VBD
a/DT
volatility/NN
in/IN
the/DT
market/NN
that/IN
I/PRP
have/VBP
never/RB
seen/VBN
before/RB
,/,
''/''
said/VBD
Michel/NNP
Vigier/NNP
,/,
a/DT
partner/NN
in/IN
brokerage/NN
firm/NN
Cholet/NNP
Dupont/NNP
./.
``/``
When/WRB
Wall/NNP
Street/NNP
turned/VBD
around/IN
shortly/RB
after/IN
the/DT
opening/NN
,/,
there/EX
was/VBD
panic/NN
buying/NN
in/IN
Paris/NNP
./.
''/''
Brokers/NNS
said/VBD
that/IN
as/IN
the/DT
news/NN
spread/VBD
that/IN
Wall/NNP
Street/NNP
was/VBD
moving/VBG
up/RB
,/,
traders/NNS
who/WP
had/VBD
called/VBN
to/TO
place/VB
sell/NN
orders/NNS
changed/VBD
their/PRP$
line/NN
in/IN
mid-conversation/NN
,/,
ordering/VBG
buys/NNS
instead/RB
./.
Trading/NN
was/VBD
driven/VBN
primarily/RB
by/IN
small/JJ
investors/NNS
and/CC
speculators/NNS
,/,
with/IN
large/JJ
institutions/NNS
waiting/VBG
on/IN
the/DT
sidelines/NNS
until/IN
late/JJ
in/IN
the/DT
day/NN
./.
When/WRB
Wall/NNP
Street/NNP
turned/VBD
,/,
however/RB
,/,
the/DT
big/JJ
boys/NNS
entered/VBD
the/DT
market/NN
,/,
looking/VBG
for/IN
bargains/NNS
./.
J.P./NNP
Morgan/NNP
&/CC
Co./NNP
swung/VBD
to/TO
a/DT
loss/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
while/IN
NCNB/NNP
Corp./NNP
reported/VBD
net/JJ
income/NN
more/RBR
than/IN
doubled/VBD
,/,
and/CC
Security/NNP
Pacific/NNP
Corp./NNP
net/NN
rose/VBD
10/CD
%/NN
./.
J.P./NNP
Morgan/NNP
&/CC
Co/NNP
./.
J.P./NNP
Morgan/NNP
,/,
as/IN
expected/VBN
,/,
posted/VBD
a/DT
$/$
1.82/CD
billion/CD
net/NN
loss/NN
for/IN
the/DT
quarter/NN
,/,
reflecting/VBG
the/DT
New/NNP
York/NNP
bank/NN
's/POS
decision/NN
last/JJ
month/NN
to/TO
add/VB
$/$
2/CD
billion/CD
to/TO
reserves/NNS
for/IN
losses/NNS
on/IN
loans/NNS
to/TO
less-developed/JJ
countries/NNS
./.
The/DT
reserve/NN
addition/NN
placed/VBD
the/DT
parent/NN
of/IN
Morgan/NNP
Guaranty/NNP
Trust/NNP
Co./NNP
among/IN
a/DT
few/JJ
major/JJ
U.S./NNP
banks/NNS
that/WDT
have/VBP
covered/VBN
nearly/RB
all/DT
their/PRP$
medium/NN
and/CC
long-term/JJ
portfolios/NNS
to/TO
less-developed/JJ
countries/NNS
with/IN
reserves/NNS
./.
The/DT
latest/JJS
quarter/NN
's/POS
loss/NN
equals/VBZ
$/$
9.92/CD
a/DT
share/NN
./.
In/IN
the/DT
year-earlier/JJ
quarter/NN
,/,
Morgan/NNP
earned/VBD
$/$
233.6/CD
million/CD
,/,
or/CC
$/$
1.25/CD
a/DT
share/NN
./.
George/NNP
M./NNP
Salem/NNP
,/,
analyst/NN
at/IN
Prudential-Bache/NNP
Securities/NNP
Inc./NNP
,/,
called/VBD
the/DT
results/NNS
``/``
mildly/RB
disappointing/JJ
./.
''/''
Excluding/VBG
the/DT
$/$
2/CD
billion/CD
provision/NN
and/CC
allowing/VBG
for/IN
the/DT
taxes/NNS
Morgan/NNP
paid/VBD
,/,
earnings/NNS
were/VBD
about/RB
65/CD
cents/NNS
a/DT
share/NN
,/,
Mr./NNP
Salem/NNP
said/VBD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/NN
trading/NN
yesterday/NN
,/,
Morgan/NNP
climbed/VBD
$/$
1.50/CD
a/DT
share/NN
to/TO
$/$
44.125/CD
./.
Net/JJ
interest/NN
income/NN
sank/VBD
27/CD
%/NN
in/IN
the/DT
quarter/NN
to/TO
$/$
254/CD
million/CD
from/IN
$/$
347/CD
million/CD
./.
The/DT
interest/NN
rate/NN
on/IN
short-term/JJ
funds/NNS
,/,
which/WDT
banks/NNS
borrow/VBP
to/TO
finance/VB
longer-term/JJ
loans/NNS
to/TO
customers/NNS
,/,
was/VBD
``/``
sharply/RB
higher/JJR
,/,
''/''
Morgan/NNP
said/VBD
./.
Morgan/NNP
received/VBD
$/$
2/CD
million/CD
of/IN
interest/NN
payments/NNS
on/IN
its/PRP$
medium/JJ
and/CC
long-term/JJ
Brazilian/JJ
loans/NNS
;/:
had/VBD
they/PRP
been/VBN
accruing/VBG
interest/NN
,/,
net/JJ
interest/NN
income/NN
would/MD
have/VB
been/VBN
$/$
35/CD
million/CD
higher/JJR
in/IN
the/DT
quarter/NN
,/,
Morgan/NNP
said/VBD
./.
Such/JJ
loans/NNS
to/TO
Argentina/NNP
also/RB
remain/VBP
classified/JJ
as/IN
non-accruing/JJ
,/,
costing/VBG
the/DT
bank/NN
$/$
10/CD
million/CD
of/IN
interest/NN
income/NN
in/IN
the/DT
third/JJ
period/NN
./.
Income/NN
from/IN
sources/NNS
other/JJ
than/IN
interest/NN
climbed/VBD
12/CD
%/NN
to/TO
$/$
414/CD
million/CD
,/,
reflecting/VBG
higher/JJR
corporate-finance/NN
and/CC
other/JJ
fees/NNS
and/CC
gains/NNS
on/IN
sales/NNS
of/IN
investment/NN
securities/NNS
./.
``/``
These/DT
increases/NNS
were/VBD
partly/RB
offset/VBN
by/IN
lower/JJR
trading-related/JJ
''/''
income/NN
,/,
the/DT
bank/NN
said/VBD
./.
Non-interest/JJ
expenses/NNS
grew/VBD
16/CD
%/NN
to/TO
$/$
496/CD
million/CD
./.
NCNB/NNP
Corp/NNP
./.
NCNB/NNP
Corp./NNP
's/POS
net/JJ
income/NN
more/RBR
than/IN
doubled/VBD
in/IN
the/DT
period/NN
,/,
largely/RB
because/IN
of/IN
continued/VBN
strong/JJ
performance/NN
by/IN
the/DT
bank/NN
's/POS
Texas/NNP
operations/NNS
./.
The/DT
Charlotte/NNP
,/,
N.C./NNP
,/,
company/NN
said/VBD
earnings/NNS
rose/VBD
to/TO
$/$
143.6/CD
million/CD
,/,
or/CC
$/$
1.45/CD
a/DT
share/NN
,/,
from/IN
$/$
58.9/CD
million/CD
,/,
or/CC
69/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
The/DT
latest/JJS
quarter/NN
included/VBD
a/DT
gain/NN
of/IN
$/$
56.1/CD
million/CD
,/,
or/CC
59/CD
cents/NNS
a/DT
share/NN
,/,
related/VBN
to/TO
the/DT
purchase/NN
of/IN
the/DT
remaining/JJ
51/CD
%/NN
of/IN
NCNB/NNP
Texas/NNP
National/NNP
Bank/NNP
from/IN
the/DT
Federal/NNP
Deposit/NNP
Insurance/NNP
Corp/NNP
./.
The/DT
strong/JJ
performance/NN
,/,
however/RB
,/,
contrasted/VBD
with/IN
an/DT
unexpectedly/RB
large/JJ
increase/NN
in/IN
the/DT
size/NN
of/IN
NCNB/NNP
's/POS
problem/NN
loans/NNS
,/,
particularly/RB
in/IN
the/DT
Southeast/NNP
./.
In/IN
the/DT
third/JJ
quarter/NN
,/,
nonperforming/VBG
assets/NNS
jumped/VBD
to/TO
$/$
474.1/CD
million/CD
,/,
or/CC
1.43/CD
%/NN
of/IN
net/JJ
loans/NNS
and/CC
leases/NNS
,/,
from/IN
$/$
232.8/CD
million/CD
,/,
or/CC
1.13/CD
%/NN
in/IN
the/DT
second/JJ
quarter/NN
./.
Nonperformers/NNS
totaled/VBD
$/$
230.8/CD
million/CD
,/,
or/CC
1.27/CD
%/NN
in/IN
the/DT
year-ago/JJ
third/JJ
quarter/NN
./.
Included/VBN
in/IN
the/DT
increase/NN
in/IN
the/DT
most/RBS
recent/JJ
quarter/NN
is/VBZ
a/DT
$/$
33/CD
million/CD
loan/NN
,/,
which/WDT
NCNB/NNP
said/VBD
it/PRP
``/``
expects/VBZ
to/TO
be/VB
fully/RB
repaid/VBN
,/,
with/IN
no/DT
loss/NN
,/,
early/RB
in/IN
the/DT
fourth/JJ
quarter/NN
./.
''/''
The/DT
deterioration/NN
in/IN
credit/NN
quality/NN
offset/VBD
strong/JJ
loan/NN
growth/NN
of/IN
17/CD
%/NN
in/IN
NCNB/NNP
's/POS
Southeast/NNP
operations/NNS
,/,
as/RB
well/RB
as/IN
a/DT
28/CD
%/NN
growth/NN
in/IN
deposits/NNS
resulting/VBG
from/IN
an/DT
aggressive/JJ
marketing/NN
campaign/NN
./.
The/DT
higher/JJR
rates/NNS
paid/VBN
on/IN
deposits/NNS
also/RB
helped/VBD
squeeze/VB
NCNB/NNP
's/POS
net/JJ
interest/NN
margin/NN
in/IN
the/DT
Southeast/NNP
to/TO
3.38/CD
%/NN
from/IN
3.80/CD
%/NN
a/DT
year/NN
earlier/RBR
./.
In/IN
Big/NNP
Board/NNP
composite/NN
trading/NN
yesterday/NN
,/,
NCNB/NNP
jumped/VBD
$/$
3.50/CD
a/DT
share/NN
,/,
to/TO
$/$
51/CD
./.
Results/NNS
were/VBD
released/VBN
after/IN
the/DT
market/NN
closed/VBD
./.
NCNB/NNP
Texas/NNP
National/NNP
,/,
formed/VBN
from/IN
the/DT
remnants/NNS
of/IN
of/IN
the/DT
failed/VBN
First/NNP
RepublicBank/NNP
Corp./NNP
of/IN
Dallas/NNP
,/,
contributed/VBD
$/$
76.9/CD
million/CD
to/TO
NCNB/NNP
's/POS
bottom/JJ
line/NN
in/IN
the/DT
third/JJ
quarter/NN
./.
NCNB/NNP
said/VBD
its/PRP$
third-quarter/NN
results/NNS
reflect/VBP
100/CD
%/NN
of/IN
earnings/NNS
of/IN
the/DT
Texas/NNP
operation/NN
since/IN
Aug./NNP
1/CD
./.
NCNB/NNP
raised/VBD
some/DT
$/$
1.9/CD
billion/CD
in/IN
new/JJ
capital/NN
during/IN
the/DT
quarter/NN
to/TO
complete/VB
the/DT
NCNB/NNP
Texas/NNP
purchase/NN
,/,
and/CC
to/TO
acquire/VB
several/JJ
small/JJ
failed/VBN
thrifts/NNS
to/TO
fill/VB
out/RP
its/PRP$
regional/JJ
franchise/NN
./.
Last/JJ
week/NN
,/,
the/DT
banking/NN
company/NN
said/VBD
it/PRP
purchased/VBD
both/DT
Freedom/NNP
Savings/NNP
&/CC
Loan/NNP
Association/NNP
,/,
Tampa/NNP
,/,
Fla./NNP
,/,
and/CC
University/NNP
Federal/NNP
Savings/NNP
Association/NNP
of/IN
San/NNP
Antonio/NNP
,/,
Texas/NNP
,/,
for/IN
$/$
169.4/CD
million/CD
./.
In/IN
the/DT
first/JJ
nine/CD
months/NNS
,/,
NCNB/NNP
's/POS
net/JJ
income/NN
climbed/VBD
65/CD
%/NN
to/TO
$/$
310.9/CD
million/CD
,/,
or/CC
$/$
3.30/CD
a/DT
share/NN
,/,
from/IN
$/$
188.2/CD
million/CD
,/,
or/CC
$/$
2.22/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Security/NNP
Pacific/NNP
Corp/NNP
./.
Security/NNP
Pacific/NNP
's/POS
earnings/NNS
growth/NN
slowed/VBD
in/IN
the/DT
third/JJ
quarter/NN
,/,
but/CC
the/DT
Los/NNP
Angeles/NNP
bank/NN
holding/VBG
company/NN
was/VBD
still/RB
able/JJ
to/TO
post/VB
a/DT
10/CD
%/NN
increase/NN
in/IN
net/JJ
income/NN
because/IN
of/IN
robust/JJ
growth/NN
in/IN
residential/JJ
real-estate/NN
and/CC
consumer/NN
loans/NNS
./.
Net/JJ
rose/VBD
to/TO
$/$
185.1/CD
million/CD
,/,
or/CC
$/$
1.55/CD
a/DT
share/NN
,/,
from/IN
$/$
167.9/CD
million/CD
,/,
or/CC
$/$
1.47/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
The/DT
company/NN
said/VBD
the/DT
gain/NN
resulted/VBD
mainly/RB
from/IN
a/DT
$/$
54/CD
million/CD
increase/NN
in/IN
net/JJ
interest/NN
income/NN
,/,
reflecting/VBG
a/DT
33/CD
%/NN
increase/NN
in/IN
real/NN
estate/NN
loans/NNS
residential/JJ
a/DT
19/CD
%/NN
rise/NN
in/IN
consumer/NN
loans/NNS
./.
These/DT
high-yielding/JJ
loans/NNS
in/IN
effect/NN
replaced/VBD
some/DT
low-yielding/JJ
assets/NNS
such/JJ
as/IN
inter-bank/JJ
loans/NNS
,/,
which/WDT
were/VBD
allowed/VBN
to/TO
decrease/VB
./.
As/IN
a/DT
result/NN
,/,
Security/NNP
Pacific/NNP
's/POS
net/JJ
interest/NN
margin/NN
fell/VBD
only/RB
13/CD
basis/NN
points/NNS
,/,
a/DT
more/RBR
mild/JJ
decrease/NN
than/IN
some/DT
major/JJ
banks/NNS
outside/IN
California/NNP
,/,
which/WDT
have/VBP
been/VBN
reporting/VBG
more/RBR
sluggish/JJ
earnings/NNS
./.
Security/NNP
Pacific/NNP
shares/NNS
closed/VBD
at/IN
$/$
44.625/CD
,/,
down/RB
37.5/CD
cents/NNS
,/,
in/IN
Big/NNP
Board/NNP
composite/JJ
trading/NN
./.
The/DT
earnings/NNS
represent/VBP
a/DT
0.89/CD
%/NN
return/NN
on/IN
assets/NNS
for/IN
Security/NNP
Pacific/NNP
,/,
and/CC
an/DT
18.9/CD
%/NN
return/NN
on/IN
equity/NN
./.
The/DT
loan/NN
growth/NN
offset/VBD
continuing/VBG
real-estate/NN
loan/NN
losses/NNS
in/IN
the/DT
depressed/VBN
Arizona/NNP
market/NN
./.
Security/NNP
Pacific/NNP
reported/VBD
a/DT
33/CD
%/NN
increase/NN
in/IN
net/JJ
credit/NN
losses/NNS
for/IN
the/DT
quarter/NN
,/,
to/TO
$/$
109/CD
million/CD
from/IN
$/$
81.9/CD
million/CD
in/IN
the/DT
year-ago/JJ
period/NN
./.
Nonperforming/VBG
loans/NNS
grew/VBD
slightly/RB
to/TO
$/$
1.75/CD
billion/CD
at/IN
Sept./NNP
30/CD
,/,
from/IN
$/$
1.7/CD
billion/CD
a/DT
year/NN
ago/RB
./.
Security/NNP
Pacific/NNP
's/POS
loan-loss/JJ
provision/NN
was/VBD
down/RB
22/CD
%/NN
,/,
or/CC
$/$
30.4/CD
million/CD
,/,
because/IN
it/PRP
added/VBD
to/TO
its/PRP$
foreign-debt/JJ
reserve/NN
the/DT
year/NN
before/RB
./.
Non-interest/JJ
income/NN
fell/VBD
6/CD
%/NN
in/IN
the/DT
quarter/NN
,/,
mainly/RB
because/IN
of/IN
an/DT
unusual/JJ
gain/NN
a/DT
year/NN
earlier/RBR
from/IN
the/DT
sale/NN
of/IN
Hong/NNP
Kong/NNP
banking/NN
operations/NNS
./.
Non-interest/JJ
expense/NN
grew/VBD
only/RB
4/CD
%/NN
in/IN
the/DT
period/NN
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
net/JJ
rose/VBD
17/CD
%/NN
to/TO
$/$
548.9/CD
million/CD
,/,
or/CC
$/$
4.67/CD
a/DT
share/NN
,/,
from/IN
$/$
469.4/CD
million/CD
,/,
or/CC
$/$
4.13/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
LIN/NNP
Broadcasting/NNP
Corp./NNP
said/VBD
it/PRP
wo/MD
n't/RB
take/VB
a/DT
position/NN
on/IN
a/DT
revised/VBN
tender/NN
offer/NN
by/IN
McCaw/NNP
Cellular/NNP
Communications/NNP
Inc./NNP
to/TO
buy/VB
LIN/NNP
and/CC
has/VBZ
asked/VBN
for/IN
clarification/NN
of/IN
the/DT
offer/NN
./.
The/DT
new/JJ
offer/NN
,/,
which/WDT
seeks/VBZ
50.3/CD
%/NN
of/IN
the/DT
cellular/JJ
and/CC
broadcasting/NN
concern/NN
,/,
is/VBZ
for/IN
$/$
125/CD
a/DT
share/NN
for/IN
22/CD
million/CD
LIN/NNP
shares/NNS
./.
McCaw/NNP
's/POS
revised/VBN
tender/NN
offer/NN
would/MD
require/VB
McCaw/NNP
to/TO
begin/VB
an/DT
auction/NN
process/NN
in/IN
July/NNP
1994/CD
that/WDT
would/MD
buy/VB
out/RP
remaining/JJ
holders/NNS
at/IN
a/DT
per-share/JJ
price/NN
roughly/RB
equivalent/JJ
to/TO
what/WP
a/DT
third/JJ
party/NN
might/MD
then/RB
have/VB
to/TO
pay/VB
for/IN
all/DT
of/IN
LIN/NNP
./.
LIN/NNP
is/VBZ
asking/VBG
McCaw/NNP
to/TO
clarify/VB
its/PRP$
tender/NN
offer/NN
,/,
which/WDT
challenges/VBZ
an/DT
agreement/NN
between/IN
BellSouth/NNP
Corp./NNP
and/CC
LIN/NNP
to/TO
merge/VB
their/PRP$
cellular-telephone/JJ
businesses/NNS
./.
BellSouth/NNP
has/VBZ
notified/VBN
LIN/NNP
that/IN
it/PRP
would/MD
``/``
shortly/RB
respond/VB
to/TO
the/DT
McCaw/NNP
proposal/NN
in/IN
as/RB
full/JJ
and/CC
effective/JJ
a/DT
manner/NN
as/IN
is/VBZ
warranted/VBN
./.
''/''
The/DT
LIN/NNP
board/NN
said/VBD
holders/NNS
may/MD
be/VB
misled/VBN
by/IN
the/DT
provision/NN
in/IN
the/DT
McCaw/NNP
proposal/NN
that/IN
``/``
guarantees/NNS
''/''
private/JJ
market/NN
value/NN
after/IN
five/CD
years/NNS
for/IN
the/DT
remaining/JJ
shares/NNS
./.
McCaw/NNP
has/VBZ
``/``
no/DT
obligation/NN
to/TO
purchase/NN
and/CC
the/DT
definition/NN
of/IN
private/JJ
market/NN
value/NN
is/VBZ
uncertain/JJ
,/,
''/''
the/DT
LIN/NNP
board/NN
said/VBD
./.
The/DT
board/NN
added/VBD
that/IN
McCaw/NNP
would/MD
be/VB
able/JJ
to/TO
control/VB
LIN/NNP
's/POS
operations/NNS
and/CC
could/MD
,/,
``/``
therefore/RB
,/,
operate/VB
LIN/NNP
in/IN
a/DT
manner/NN
which/WDT
could/MD
diminish/VB
its/PRP$
private/JJ
market/NN
value/NN
and/CC
attractiveness/NN
to/TO
a/DT
third-party/JJ
purchaser/NN
in/IN
five/CD
years/NNS
./.
''/''
In/IN
national/JJ
over-the-counter/JJ
trading/NN
,/,
LIN/NNP
closed/VBD
at/IN
$/$
104.75/CD
,/,
down/RB
$/$
2.75/CD
./.
A/DT
group/NN
of/IN
institutional/JJ
investors/NNS
in/IN
Telerate/NNP
Inc./NNP
said/VBD
that/IN
Dow/NNP
Jones/NNP
&/CC
Co./NNP
's/POS
$/$
18-a-share/JJ
offer/NN
for/IN
the/DT
electronic/JJ
financial/JJ
information/NN
services/NNS
company/NN
is/VBZ
``/``
grossly/RB
inadequate/JJ
./.
''/''
In/IN
a/DT
letter/NN
filed/VBN
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
,/,
the/DT
group/NN
,/,
which/WDT
holds/VBZ
about/RB
4.5/CD
million/CD
Telerate/NNP
shares/NNS
,/,
or/CC
about/RB
4.7/CD
%/NN
of/IN
the/DT
shares/NNS
outstanding/JJ
,/,
said/VBD
``/``
.../:
at/IN
present/JJ
none/NN
of/IN
us/PRP
believes/VBZ
an/DT
offer/NN
for/IN
less/JJR
than/IN
$/$
25/CD
per/IN
share/NN
would/MD
be/VB
fair/JJ
and/CC
some/DT
believe/VBP
that/DT
$/$
25/CD
is/VBZ
too/RB
low/JJ
./.
''/''
The/DT
letter/NN
was/VBD
dated/VBN
Oct./NNP
6/CD
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Telerate/NNP
shares/NNS
closed/VBD
yesterday/NN
at/IN
$/$
18.875/CD
,/,
down/RB
75/CD
cents/NNS
a/DT
share/NN
./.
Dow/NNP
Jones/NNP
,/,
publisher/NN
of/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
,/,
has/VBZ
launched/VBN
an/DT
$/$
18-a-share/JJ
,/,
or/CC
$/$
576/CD
million/CD
,/,
tender/NN
offer/NN
to/TO
acquire/VB
the/DT
remaining/JJ
Telerate/NNP
shares/NNS
outstanding/JJ
;/:
Dow/NNP
Jones/NNP
owns/VBZ
67/CD
%/NN
of/IN
Telerate/NNP
./.
Telerate/NNP
has/VBZ
rejected/VBN
the/DT
offer/NN
,/,
which/WDT
expires/VBZ
Nov./NNP
3/CD
./.
The/DT
group/NN
includes/VBZ
Putnam/NNP
Cos./NNP
and/CC
various/JJ
affiliates/NNS
based/VBN
in/IN
Boston/NNP
;/:
Wells/NNP
Fargo/NNP
Bank/NNP
,/,
San/NNP
Francisco/NNP
;/:
the/DT
California/NNP
Public/NNP
Employees/NNP
Retirement/NNP
System/NNP
,/,
Sacramento/NNP
,/,
Calif./NNP
,/,
and/CC
T./NNP
Rowe/NNP
Price/NNP
Associates/NNP
Inc./NNP
,/,
Baltimore/NNP
./.
Among/IN
other/JJ
issues/NNS
,/,
the/DT
group/NN
's/POS
letter/NN
said/VBD
it/PRP
has/VBZ
``/``
concerns/VBZ
as/IN
to/TO
whether/IN
Dow/NNP
Jones/NNP
's/POS
offer/NN
meets/VBZ
the/DT
applicable/JJ
requirements/NNS
of/IN
procedural/JJ
fairness/NN
./.
''/''
A/DT
spokesman/NN
for/IN
Dow/NNP
Jones/NNP
said/VBD
he/PRP
had/VBD
n't/RB
seen/VBN
the/DT
group/NN
's/POS
filing/NN
,/,
but/CC
added/VBD
,/,
``/``
obviously/RB
Dow/NNP
Jones/NNP
disagrees/VBZ
with/IN
their/PRP$
conclusions/NNS
./.
Our/PRP$
offer/NN
is/VBZ
to/TO
buy/VB
any/DT
and/CC
all/DT
shares/NNS
tendered/VBN
at/IN
$/$
18/CD
a/DT
share/NN
./.
''/''
U.S./NNP
Trade/NNP
Representative/NNP
Carla/NNP
Hills/NNP
said/VBD
the/DT
first/JJ
dispute-settlement/JJ
panel/NN
set/VBD
up/RP
under/IN
the/DT
U.S.-Canadian/JJ
``/``
free/JJ
trade/NN
''/''
agreement/NN
has/VBZ
ruled/VBN
that/IN
Canada/NNP
's/POS
restrictions/NNS
on/IN
exports/NNS
of/IN
Pacific/NNP
salmon/NN
and/CC
herring/NN
violate/VBP
the/DT
accord/NN
./.
Mrs./NNP
Hills/NNP
said/VBD
the/DT
U.S./NNP
and/CC
Canada/NNP
have/VBP
until/IN
Nov./NNP
13/CD
to/TO
resolve/VB
the/DT
dispute/NN
./.
If/IN
a/DT
solution/NN
is/VBZ
n't/RB
reached/VBN
by/IN
then/RB
,/,
she/PRP
said/VBD
,/,
the/DT
U.S./NNP
would/MD
have/VB
the/DT
right/NN
to/TO
suspend/VB
some/DT
trade/NN
concessions/NNS
to/TO
Canada/NNP
equivalent/NN
in/IN
value/NN
to/TO
the/DT
losses/NNS
suffered/VBN
by/IN
U.S./NNP
fish-processing/JJ
companies/NNS
in/IN
Alaska/NNP
and/CC
the/DT
Pacific/NNP
Northwest/NNP
./.
However/RB
,/,
in/IN
Ottawa/NNP
,/,
Canadian/NNP
Trade/NNP
Minister/NNP
John/NNP
Crosbie/NNP
said/VBD
the/DT
dispute-settlement/JJ
panel/NN
accepted/VBD
the/DT
``/``
legitimacy/NN
of/IN
Canada/NNP
's/POS
position/NN
on/IN
the/DT
use/NN
of/IN
these/DT
landing/NN
requirements/NNS
to/TO
conserve/VB
and/CC
manage/VB
these/DT
important/JJ
fisheries/NNS
./.
''/''
Questioned/VBN
about/IN
the/DT
seeming/JJ
contradiction/NN
in/IN
the/DT
U.S./NNP
and/CC
Canadian/JJ
government/NN
views/NNS
of/IN
the/DT
panel/NN
's/POS
report/NN
,/,
an/DT
aide/NN
for/IN
Mrs./NNP
Hills/NNP
said/VBD
the/DT
panel/NN
had/VBD
clearly/RB
ruled/VBN
that/IN
the/DT
Canadian/JJ
trade/NN
restrictions/NNS
``/``
are/VBP
illegal/JJ
./.
''/''
The/DT
U.S./NNP
trade/NN
representative/NN
declined/VBD
to/TO
put/VB
a/DT
dollar/NN
estimate/NN
on/IN
the/DT
losses/NNS
resulting/VBG
from/IN
the/DT
Canadian/JJ
export/NN
restrictions/NNS
./.
Canada/NNP
initially/RB
had/VBD
an/DT
export/NN
prohibition/NN
that/WDT
was/VBD
replaced/VBN
by/IN
regulations/NNS
requiring/VBG
that/DT
such/JJ
fish/NN
had/VBD
to/TO
be/VB
brought/VBN
ashore/RB
in/IN
British/NNP
Columbia/NNP
by/IN
commercial/JJ
fishermen/NNS
prior/RB
to/TO
export/VB
./.
This/DT
action/NN
was/VBD
defended/VBN
by/IN
the/DT
Canadian/JJ
government/NN
on/IN
conservation/NN
grounds/NNS
./.
Mrs./NNP
Hills/NNP
said/VBD
yesterday/NN
that/IN
the/DT
dispute-settlement/JJ
panel/NN
rejected/VBD
this/DT
Canadian/JJ
government/NN
argument/NN
./.
``/``
We/PRP
fully/RB
expect/VBP
that/IN
Canada/NNP
will/MD
comply/VB
with/IN
the/DT
panel/NN
's/POS
ruling/NN
''/''
that/IN
the/DT
``/``
landing/NN
requirement/NN
''/''
also/RB
must/MD
be/VB
ended/VBN
,/,
she/PRP
said/VBD
./.
Earlier/RBR
,/,
an/DT
international/JJ
panel/NN
set/VBN
up/NNP
under/IN
the/DT
rules/NNS
of/IN
the/DT
General/NNP
Agreement/NNP
on/IN
Tariffs/NNP
and/CC
Trade/NNP
in/IN
Geneva/NNP
determined/VBD
that/IN
the/DT
original/JJ
Canadian/JJ
fish-export/JJ
restrictions/NNS
violated/VBD
GATT/NNP
rules/NNS
./.
Mrs./NNP
Hills/NNP
said/VBD
the/DT
U.S./NNP
wo/MD
n't/RB
accept/VB
any/DT
delays/NNS
after/IN
Nov./NNP
13/CD
because/IN
U.S./NNP
fish-processing/JJ
firms/NNS
enter/VBP
into/IN
contracts/NNS
in/IN
the/DT
fall/NN
to/TO
purchase/VB
the/DT
next/JJ
season/NN
's/POS
catch/NN
./.
She/PRP
said/VBD
the/DT
Canadian/JJ
restrictions/NNS
must/MD
be/VB
removed/VBN
before/IN
such/JJ
contracts/NNS
are/VBP
concluded/VBN
./.
Idle/JJ
Thought/NN
To/TO
spend/VB
a/DT
carefree/JJ
,/,
idle/JJ
day/NN
,/,
When/WRB
duty/NN
calls/VBZ
,/,
to/TO
pay/VB
no/DT
heed/NN
,/,
To/TO
while/VB
the/DT
precious/JJ
hours/NNS
away/RB
--/:
Character/NN
is/VBZ
what/WP
you/PRP
need/VBP
./.
--/:
May/NNP
Richstone/NNP
./.
Telecussed/VBD
The/DT
guy/NN
who/WP
throws/VBZ
an/DT
intercept/NN
'Cause/IN
his/PRP$
receiver/NN
slips/VBZ
Should/MD
somehow/RB
be/VB
advised/VBN
that/IN
we/PRP
At/IN
home/NN
can/MD
read/VB
his/PRP$
lips/NNS
./.
--/:
Dick/NNP
Emmons/NNP
./.
BancOklahoma/NNP
Corp./NNP
said/VBD
it/PRP
completed/VBD
a/DT
restructuring/NN
agreement/NN
previously/RB
agreed/VBN
to/TO
by/IN
the/DT
Federal/NNP
Deposit/NNP
Insurance/NNP
Corp./NNP
,/,
creditor/NN
banks/NNS
and/CC
subordinated/VBN
debenture/NN
holders/NNS
./.
The/DT
plan/NN
would/MD
permit/VB
the/DT
bank/NN
holding/VBG
company/NN
to/TO
retire/VB
its/PRP$
bank/NN
and/CC
debenture/NN
obligations/NNS
through/IN
exchanges/NNS
of/IN
cash/NN
and/CC
equity/NN
./.
The/DT
FDIC/NNP
,/,
which/WDT
in/IN
1986/CD
provided/VBD
$/$
130/CD
million/CD
in/IN
open-bank/JJ
assistance/NN
to/TO
BancOklahoma/NNP
's/POS
Bank/NNP
of/IN
Oklahoma/NNP
,/,
Tulsa/NNP
,/,
unit/NN
will/MD
continue/VB
to/TO
maintain/VB
$/$
90/CD
million/CD
in/IN
preferred/VBN
stock/NN
in/IN
the/DT
Tulsa/NNP
bank/NN
unit/NN
./.
In/IN
exchange/NN
for/IN
the/DT
other/JJ
$/$
40/CD
million/CD
,/,
the/DT
FDIC/NNP
will/MD
receive/VB
additional/JJ
warrants/NNS
entitling/VBG
it/PRP
to/TO
buy/VB
60/CD
%/NN
of/IN
BancOklahoma/NNP
's/POS
common/JJ
stock/NN
outstanding/JJ
,/,
up/RB
from/IN
the/DT
55/CD
%/NN
option/NN
the/DT
FDIC/NNP
received/VBD
under/IN
terms/NNS
of/IN
the/DT
1986/CD
capital/NN
infusion/NN
./.
In/IN
exchange/NN
for/IN
the/DT
$/$
76/CD
million/CD
they/PRP
are/VBP
owed/VBN
,/,
creditor/NN
banks/NNS
will/MD
receive/VB
3.9/CD
million/CD
shares/NNS
of/IN
BancOklahoma/NNP
common/JJ
stock/NN
and/CC
the/DT
proceeds/NNS
from/IN
the/DT
future/JJ
sales/NNS
of/IN
four/CD
subsidiary/JJ
banks/NNS
to/TO
private/JJ
buyers/NNS
,/,
the/DT
bank/NN
holding/VBG
company/NN
said/VBD
./.
Also/RB
under/IN
the/DT
agreement/NN
,/,
debenture/NN
holders/NNS
will/MD
get/VB
one/CD
million/CD
shares/NNS
of/IN
common/JJ
stock/NN
in/IN
exchange/NN
for/IN
$/$
7.7/CD
million/CD
in/IN
debentures/NNS
and/CC
holders/NNS
of/IN
BancOklahoma/NNP
's/POS
series/NN
A/DT
preferred/JJ
stock/NN
will/MD
receive/VB
1.25/CD
shares/NNS
of/IN
common/JJ
stock/NN
for/IN
every/DT
share/NN
of/IN
preferred/VBN
they/PRP
own/VBP
,/,
the/DT
company/NN
said/VBD
./.
Bear/NNP
Stearns/NNP
's/POS
chief/JJ
economist/NN
,/,
Lawrence/NNP
Kudlow/NNP
,/,
in/IN
the/DT
Sept./NNP
29/CD
issue/NN
of/IN
the/DT
firm/NN
's/POS
Global/NNP
Spectator/NNP
:/:
Were/VB
it/PRP
true/JJ
that/IN
a/DT
weak/JJ
currency/NN
paves/VBZ
the/DT
way/NN
for/IN
trade/NN
surpluses/NNS
,/,
then/RB
presumably/RB
Argentina/NN
would/MD
be/VB
the/DT
center/NN
of/IN
today/NN
's/POS
global/JJ
economy/NN
./.
BSN/NNP
Corp./NNP
said/VBD
it/PRP
will/MD
begin/VB
an/DT
offer/NN
tomorrow/NN
to/TO
exchange/VB
up/IN
to/TO
one/CD
million/CD
of/IN
its/PRP$
common/JJ
shares/NNS
and/CC
all/DT
of/IN
its/PRP$
$/$
16.6/CD
million/CD
in/IN
7/CD
3\/4/CD
%/NN
convertible/JJ
debentures/NNS
due/JJ
2001/CD
for/IN
a/DT
package/NN
of/IN
new/JJ
debt/NN
and/CC
common/JJ
stock/NN
warrants/NNS
./.
Under/IN
terms/NNS
of/IN
the/DT
offer/NN
,/,
the/DT
sporting/NN
goods/NNS
maker/NN
will/MD
swap/VB
$/$
9/CD
face/NN
amount/NN
of/IN
9/CD
1\/4/CD
%/NN
subordinated/VBD
notes/NNS
due/JJ
1996/CD
and/CC
one/CD
warrant/NN
for/IN
each/DT
common/JJ
share/NN
./.
Each/DT
warrant/NN
allows/VBZ
the/DT
holder/NN
to/TO
buy/VB
one/CD
BSN/NNP
share/NN
for/IN
$/$
10.75/CD
a/DT
share/NN
at/IN
any/DT
time/NN
over/IN
the/DT
next/JJ
seven/CD
years/NNS
./.
BSN/NNP
currently/RB
has/VBZ
4.6/CD
million/CD
common/JJ
shares/NNS
outstanding/JJ
./.
BSN/NNP
also/RB
is/VBZ
offering/VBG
$/$
850/CD
face/NN
amount/NN
of/IN
new/JJ
notes/NNS
and/CC
64/CD
common-stock/JJ
warrants/NNS
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
of/IN
its/PRP$
convertible/JJ
debt/NN
outstanding/JJ
./.
The/DT
company/NN
said/VBD
it/PRP
can/MD
redeem/VB
the/DT
warrants/NNS
at/IN
its/PRP$
option/NN
for/IN
$/$
1/CD
each/DT
./.
The/DT
offer/NN
is/VBZ
n't/RB
contingent/JJ
on/IN
a/DT
certain/JJ
amount/NN
of/IN
debt/NN
or/CC
stock/NN
being/VBG
exchanged/VBN
./.
BSN/NNP
said/VBD
it/PRP
is/VBZ
making/VBG
the/DT
offer/NN
to/TO
shrink/VB
its/PRP$
capital/NN
and/CC
increase/VB
shareholder/NN
value/NN
./.
If/IN
all/DT
the/DT
bondholders/NNS
and/CC
holders/NNS
of/IN
one/CD
million/CD
common/JJ
shares/NNS
accept/VBP
the/DT
offer/NN
,/,
BSN/NNP
will/MD
increase/VB
its/PRP$
debt/NN
by/IN
$/$
9/CD
million/CD
,/,
but/CC
it/PRP
also/RB
will/MD
recognize/VB
a/DT
$/$
2/CD
million/CD
gain/NN
from/IN
retiring/VBG
the/DT
old/JJ
debt/NN
,/,
said/VBD
Michael/NNP
J./NNP
Blumenfeld/NNP
,/,
president/NN
./.
``/``
We/PRP
have/VBP
sufficient/JJ
cash/NN
flow/NN
to/TO
handle/VB
that/DT
,/,
''/''
he/PRP
said/VBD
./.
The/DT
offers/NNS
are/VBP
scheduled/VBN
to/TO
expire/VB
in/IN
mid/JJ
to/TO
late/JJ
November/NNP
./.
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
's/POS
net/JJ
income/NN
dropped/VBD
37/CD
%/NN
,/,
while/IN
Bear/NNP
Stearns/NNP
Cos./NNP
posted/VBD
a/DT
7.5/CD
%/NN
gain/NN
in/IN
net/JJ
,/,
and/CC
PaineWebber/NNP
Group/NNP
Inc./NNP
's/POS
profit/NN
fell/VBD
,/,
but/CC
would/MD
have/VB
risen/VBN
without/IN
a/DT
special/JJ
gain/NN
a/DT
year/NN
ago/RB
./.
At/IN
Merrill/NNP
Lynch/NNP
,/,
third-period/JJ
net/JJ
was/VBD
$/$
41/CD
million/CD
,/,
or/CC
34/CD
cents/NNS
a/DT
share/NN
,/,
down/RB
from/IN
$/$
65.6/CD
million/CD
,/,
or/CC
58/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
ago/RB
./.
Total/JJ
revenue/NN
reached/VBN
$/$
2.83/CD
billion/CD
,/,
up/RB
10/CD
%/NN
from/IN
$/$
2.57/CD
billion/CD
./.
The/DT
firm/NN
's/POS
drop/NN
in/IN
net/JJ
reflected/VBD
weaker/JJR
revenue/NN
in/IN
transactions/NNS
for/IN
its/PRP$
own/JJ
account/NN
--/:
a/DT
decline/NN
of/IN
19/CD
%/NN
to/TO
$/$
314.6/CD
million/CD
on/IN
reduced/VBN
revenue/NN
from/IN
trading/VBG
fixed-income/JJ
securities/NNS
./.
Investment/NN
banking/VBG
revenue/NN
fell/VBD
22/CD
%/NN
to/TO
$/$
296.6/CD
million/CD
on/IN
fewer/JJR
equity/NN
and/CC
municipal/JJ
underwritings/NNS
./.
Merrill/NNP
Lynch/NNP
's/POS
commission/NN
revenue/NN
grew/VBD
21/CD
%/NN
,/,
however/RB
,/,
to/TO
$/$
462.8/CD
million/CD
,/,
on/IN
higher/JJR
share/NN
prices/NNS
and/CC
volume/NN
and/CC
on/IN
strong/JJ
sales/NNS
of/IN
mutual/JJ
funds/NNS
./.
Revenue/NN
derived/VBN
from/IN
interest/NN
and/CC
dividends/NNS
jumped/VBD
30/CD
%/NN
to/TO
$/$
1.4/CD
billion/CD
./.
Asset-management/JJ
fee/NN
revenue/NN
grew/VBD
12/CD
%/NN
to/TO
$/$
151/CD
million/CD
./.
The/DT
brokerage/NN
also/RB
reported/VBD
a/DT
loss/NN
of/IN
$/$
2.2/CD
million/CD
from/IN
the/DT
discontinued/VBN
operations/NNS
and/CC
disposal/NN
of/IN
its/PRP$
Fine/NNP
Homes/NNP
International/NNP
Limited/NNP
Partnership/NNP
real-estate/NN
subsidiary/NN
./.
Bear/NNP
Stearns/NNP
said/VBD
net/NN
in/IN
the/DT
first/JJ
quarter/NN
ended/VBN
Sept./NNP
29/CD
reached/VBD
$/$
22.1/CD
million/CD
,/,
or/CC
23/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
20.5/CD
million/CD
,/,
or/CC
20/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
year-earlier/JJ
quarter/NN
./.
Gross/JJ
revenue/NN
rose/VBD
21/CD
%/NN
to/TO
$/$
580.4/CD
million/CD
from/IN
$/$
478.9/CD
million/CD
./.
Profit/NN
from/IN
trading/NN
for/IN
its/PRP$
own/JJ
account/NN
dropped/VBD
,/,
the/DT
securities/NNS
firm/NN
said/VBD
./.
Investment/NN
banking/NN
revenue/NN
climbed/VBD
25/CD
%/NN
,/,
while/IN
commission/NN
revenue/NN
advanced/VBD
31/CD
%/NN
on/IN
a/DT
stronger/JJR
retail/JJ
market/NN
./.
Bear/NNP
Stearns/NNP
is/VBZ
the/DT
holding/VBG
company/NN
for/IN
Bear/NNP
,/,
Stearns/NNP
&/CC
Co./NNP
,/,
the/DT
investment/NN
banking/NN
and/CC
brokerage/NN
firm/NN
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/NN
trading/NN
yesterday/NN
,/,
Bear/NNP
Stearns/NNP
shares/NNS
closed/VBD
at/IN
$/$
13.625/CD
,/,
down/RB
25/CD
cents/NNS
./.
Separately/RB
,/,
PaineWebber/NNP
posted/VBD
net/JJ
income/NN
for/IN
the/DT
third/JJ
quarter/NN
of/IN
$/$
16.8/CD
million/CD
,/,
or/CC
41/CD
cents/NNS
a/DT
share/NN
,/,
reflecting/VBG
a/DT
``/``
broad-based/JJ
improvement/NN
''/''
in/IN
the/DT
company/NN
's/POS
core/NN
businesses/NNS
./.
Retail/JJ
profit/NN
surged/VBD
,/,
but/CC
the/DT
company/NN
said/VBD
it/PRP
was/VBD
only/RB
a/DT
``/``
modest/JJ
contributor/NN
''/''
to/TO
third-quarter/JJ
results/NNS
./.
A/DT
year/NN
ago/RB
,/,
net/NN
at/IN
the/DT
New/NNP
York/NNP
investment/NN
banking/VBG
firm/NN
was/VBD
$/$
20.9/CD
million/CD
,/,
or/CC
50/CD
cents/NNS
a/DT
share/NN
,/,
including/VBG
a/DT
special/JJ
pretax/JJ
gain/NN
of/IN
$/$
46.3/CD
million/CD
from/IN
the/DT
sale/NN
of/IN
the/DT
company/NN
's/POS
interest/NN
in/IN
National/NNP
Car/NNP
Rental/NNP
Systems/NNP
Inc/NNP
./.
Revenue/NN
was/VBD
$/$
444.9/CD
million/CD
,/,
including/VBG
net/JJ
interest/NN
,/,
down/RB
slightly/RB
from/IN
$/$
450.7/CD
million/CD
./.
In/IN
Big/NNP
Board/NNP
composite/NN
trading/NN
yesterday/RB
,/,
PaineWebber/NNP
closed/VBD
at/IN
$/$
18.50/CD
,/,
up/RB
75/CD
cents/NNS
./.
Seafirst/NNP
Corp./NNP
said/VBD
it/PRP
signed/VBD
an/DT
agreement/NN
with/IN
builder/NN
Martin/NNP
Selig/NNP
to/TO
purchase/VB
its/PRP$
headquarters/NN
building/NN
,/,
the/DT
Columbia/NNP
Seafirst/NNP
Center/NNP
,/,
for/IN
$/$
354/CD
million/CD
./.
Purchase/NN
of/IN
the/DT
76-story/JJ
structure/NN
is/VBZ
subject/JJ
to/TO
execution/NN
of/IN
a/DT
definitive/JJ
agreement/NN
,/,
approval/NN
by/IN
the/DT
boards/NNS
of/IN
Seafirst/NNP
and/CC
its/PRP$
parent/NN
company/NN
BankAmerica/NNP
Corp./NNP
,/,
and/CC
approval/NN
by/IN
regulators/NNS
./.
The/DT
market/NN
upheaval/NN
apparently/RB
has/VBZ
n't/RB
triggered/VBN
any/DT
cash/NN
crunch/NN
--/:
yet/RB
./.
Individual/JJ
investors/NNS
,/,
investment/NN
firms/NNS
and/CC
arbitragers/NNS
who/WP
speculate/VBP
in/IN
the/DT
stocks/NNS
of/IN
takeover/NN
candidates/NNS
can/MD
suffer/VB
liquidity/NN
and/CC
payment/NN
problems/NNS
when/WRB
stocks/NNS
dive/VBP
;/:
those/DT
investors/NNS
often/RB
borrow/VBP
heavily/RB
to/TO
buy/VB
their/PRP$
holdings/NNS
and/CC
use/VB
the/DT
stocks/NNS
as/IN
collateral/NN
for/IN
loans/NNS
./.
But/CC
several/JJ
large/JJ
banks/NNS
said/VBD
yesterday/NN
they/PRP
detected/VBD
no/DT
signs/NNS
of/IN
unusual/JJ
demand/NN
for/IN
credit/NN
that/WDT
would/MD
signal/VB
such/JJ
difficulties/NNS
./.
``/``
We/PRP
're/VBP
seeing/VBG
nothing/NN
out/IN
of/IN
the/DT
ordinary/JJ
,/,
''/''
said/VBD
one/CD
official/NN
at/IN
a/DT
Top/JJ
10/CD
bank/NN
./.
``/``
That/DT
's/VBZ
good/JJ
news/NN
,/,
because/IN
we/PRP
all/DT
swim/VBP
in/IN
this/DT
water/NN
./.
''/''
Added/VBD
another/DT
executive/NN
at/IN
a/DT
big/JJ
bank/NN
:/:
``/``
We/PRP
were/VBD
all/DT
a/DT
little/JJ
goosey/JJ
over/IN
the/DT
weekend/NN
trying/VBG
to/TO
forecast/VB
what/WP
would/MD
happen/VB
{/(
Monday/NNP
it/PRP
's/VBZ
been/VBN
very/RB
quiet/JJ
./.
Now/RB
,/,
as/IN
for/IN
tomorrow/NN
,/,
hell/UH
,/,
who/WP
knows/VBZ
?/.
''/''
What/WP
happened/VBD
Friday/NNP
shows/VBZ
that/IN
financial/JJ
markets/NNS
are/VBP
not/RB
yet/RB
sufficiently/RB
coordinated/VBN
to/TO
handle/VB
another/DT
meltdown/NN
in/IN
prices/NNS
./.
No/DT
fiddling/NN
with/IN
systems/NNS
and/CC
procedures/NNS
will/MD
ever/RB
prevent/VB
markets/NNS
from/IN
suffering/VBG
a/DT
panic/NN
wave/NN
of/IN
selling/NN
./.
But/CC
markets/NNS
can/MD
operate/VB
with/IN
greater/JJR
or/CC
lesser/JJR
efficiency/NN
./.
After/IN
the/DT
1987/CD
plunge/NN
,/,
markets/NNS
agreed/VBD
that/IN
it/PRP
would/MD
be/VB
wise/JJ
to/TO
halt/VB
trading/NN
whenever/WRB
panic/NN
conditions/NNS
arose/VBD
./.
The/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
adopted/VBD
two/CD
specific/JJ
circuit/NN
breakers/NNS
:/:
If/IN
the/DT
Dow/NNP
Jones/NNP
index/NN
falls/VBZ
250/CD
points/NNS
in/IN
a/DT
day/NN
,/,
the/DT
exchange/NN
will/MD
halt/NN
trading/VBG
for/IN
one/CD
hour/NN
;/:
if/IN
the/DT
decline/NN
hits/VBZ
400/CD
points/NNS
,/,
the/DT
exchange/NN
will/MD
close/VB
for/IN
an/DT
additional/JJ
two/CD
hours/NNS
./.
The/DT
rationale/NN
is/VBZ
that/IN
an/DT
interruption/NN
of/IN
trading/NN
will/MD
allow/VB
investors/NNS
to/TO
reconsider/VB
their/PRP$
strategies/NNS
,/,
calm/VB
sellers/NNS
and/CC
lead/VB
buyers/NNS
to/TO
enter/VB
the/DT
market/NN
at/IN
indicated/VBN
new/JJ
price/NN
levels/NNS
./.
It/PRP
is/VBZ
impossible/JJ
to/TO
know/VB
whether/IN
that/DT
theory/NN
is/VBZ
realistic/JJ
./.
A/DT
temporary/JJ
cessation/NN
of/IN
trading/NN
may/MD
indeed/RB
discourage/VB
a/DT
selling/NN
panic/NN
from/IN
feeding/VBG
on/IN
itself/PRP
./.
But/CC
there/EX
is/VBZ
also/RB
the/DT
possibility/NN
that/IN
shutting/VBG
down/RP
markets/NNS
will/MD
intensify/VB
fears/NNS
and/CC
cause/VB
an/DT
even/RB
more/RBR
abrupt/JJ
slide/NN
in/IN
prices/NNS
./.
What/WP
happened/VBD
Friday/NNP
was/VBD
the/DT
worst/JJS
of/IN
all/DT
worlds/NNS
./.
The/DT
futures/NNS
exchanges/NNS
followed/VBD
their/PRP$
own/JJ
pre-set/JJ
circuit/NN
breakers/NNS
and/CC
shut/VBD
down/RP
at/IN
about/RB
3/CD
p.m./NN
for/IN
30/CD
minutes/NNS
,/,
after/IN
the/DT
Standard/NNP
&/CC
Poor/NNP
's/POS
500/CD
stock/NN
index/NN
had/VBD
fallen/VBN
12/CD
points/NNS
,/,
or/CC
about/RB
100/CD
points/NNS
on/IN
the/DT
Dow/NNP
Jones/NNP
index/NN
./.
Options/NNS
markets/NNS
stopped/VBD
trading/NN
in/IN
many/JJ
securities/NNS
./.
The/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
under/IN
its/PRP$
own/JJ
rules/NNS
,/,
remained/VBD
open/JJ
./.
With/IN
nowhere/RB
else/RB
to/TO
go/VB
,/,
sellers/NNS
,/,
and/CC
particularly/RB
program/NN
traders/NNS
,/,
focused/VBD
all/DT
their/PRP$
selling/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
As/IN
liquidity/NN
on/IN
that/DT
market/NN
weakened/VBD
,/,
prices/NNS
fell/VBD
sharply/RB
./.
Had/VBD
the/DT
futures/NNS
and/CC
options/NNS
markets/NNS
been/VBN
open/JJ
,/,
additional/JJ
liquidity/NN
would/MD
have/VB
been/VBN
provided/VBN
and/CC
the/DT
decline/NN
,/,
most/RBS
probably/RB
,/,
would/MD
have/VB
been/VBN
less/RBR
intense/JJ
./.
At/IN
3:30/CD
,/,
after/IN
intense/JJ
telephone/NN
negotiations/NNS
between/IN
the/DT
trading/NN
markets/NNS
and/CC
Washington/NNP
,/,
the/DT
futures/NNS
exchanges/NNS
reopened/VBD
./.
Futures/NNS
trading/NN
,/,
however/RB
,/,
was/VBD
halted/VBN
altogether/RB
at/IN
3:45/CD
,/,
after/IN
the/DT
futures/NNS
markets/NNS
had/VBD
dropped/VBN
an/DT
additional/JJ
30/CD
points/NNS
,/,
which/WDT
is/VBZ
the/DT
daily/JJ
limit/NN
for/IN
price/NN
declines/NNS
./.
At/IN
this/DT
point/NN
,/,
the/DT
options/NNS
markets/NNS
also/RB
shut/VBD
down/RP
and/CC
once/RB
more/RBR
left/VBD
all/DT
sales/NNS
to/TO
be/VB
handled/VBN
by/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
It/PRP
is/VBZ
time/NN
to/TO
recognize/VB
that/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
the/DT
futures/NNS
markets/NNS
and/CC
the/DT
options/NNS
markets/NNS
,/,
though/IN
physically/RB
separate/JJ
,/,
have/VBP
actually/RB
become/VBN
so/RB
closely/RB
intertwined/VBN
as/IN
to/TO
constitute/VB
one/CD
market/NN
effectively/RB
./.
Traders/NNS
can/MD
vary/VB
their/PRP$
strategies/NNS
and/CC
execute/VB
their/PRP$
orders/NNS
in/IN
any/DT
one/CD
of/IN
them/PRP
./.
It/PRP
therefore/RB
makes/VBZ
no/DT
sense/NN
for/IN
each/DT
market/NN
to/TO
adopt/VB
different/JJ
circuit/NN
breakers/NNS
./.
To/TO
achieve/VB
maximum/NN
liquidity/NN
and/CC
minimize/VB
price/NN
volatility/NN
,/,
either/CC
all/DT
markets/NNS
should/MD
be/VB
open/JJ
to/TO
trading/NN
or/CC
none/NN
./.
Synchronized/VBN
circuit/NN
breakers/NNS
would/MD
not/RB
have/VB
halted/VBN
the/DT
slide/NN
in/IN
prices/NNS
on/IN
Friday/NNP
,/,
but/CC
they/PRP
probably/RB
would/MD
have/VB
made/VBN
for/IN
smoother/JJR
,/,
less/RBR
volatile/JJ
executions/NNS
./.
It/PRP
's/POS
time/NN
for/IN
the/DT
exchanges/NNS
and/CC
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
to/TO
agree/VB
on/IN
joint/JJ
conditions/NNS
for/IN
halting/VBG
trading/NN
or/CC
staying/VBG
open/JJ
./.
Let/VB
's/PRP
not/RB
have/VB
one/CD
market/NN
shut/VBD
down/RP
for/IN
30/CD
minutes/NNS
when/WRB
the/DT
Dow/NNP
declines/VBZ
100/CD
points/NNS
and/CC
another/DT
shut/VBD
down/RP
for/IN
an/DT
hour/NN
after/IN
a/DT
250-point/JJ
decline/NN
./.
The/DT
need/NN
for/IN
hurried/JJ
last-minute/JJ
telephone/NN
negotiations/NNS
among/IN
market/NN
officials/NNS
will/MD
disappear/VB
once/IN
rules/NNS
are/VBP
in/IN
place/NN
that/WDT
synchronize/VBP
circuit/NN
breakers/NNS
in/IN
all/DT
markets/NNS
./.
The/DT
new/JJ
circuit/NN
breakers/NNS
,/,
if/IN
they/PRP
are/VBP
to/TO
be/VB
applied/VBN
at/IN
all/DT
,/,
will/MD
require/VB
that/IN
futures/NNS
and/CC
options/NNS
trading/NN
continue/VB
as/RB
long/RB
as/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
remains/VBZ
open/JJ
./.
The/DT
rules/NNS
should/MD
be/VB
established/VBN
by/IN
agreement/NN
of/IN
the/DT
officials/NNS
of/IN
all/DT
affected/VBN
exchanges/NNS
acting/VBG
under/IN
the/DT
oversight/NN
and/CC
with/IN
the/DT
approval/NN
of/IN
the/DT
government/NN
regulatory/JJ
agencies/NNS
./.
Should/MD
the/DT
SEC/NNP
and/CC
the/DT
Commodities/NNP
Futures/NNP
Trading/NNP
Commission/NNP
which/WDT
,/,
with/IN
the/DT
SEC/NNP
,/,
regulates/VBZ
the/DT
Chicago/NNP
stock-index/JJ
markets/NNS
)/)
be/VB
unable/JJ
to/TO
agree/VB
,/,
the/DT
issue/NN
may/MD
have/VB
to/TO
be/VB
resolved/VBN
by/IN
decision/NN
of/IN
the/DT
Treasury/NNP
secretary/NN
./.
In/IN
many/JJ
ways/NNS
,/,
our/PRP$
financial/JJ
markets/NNS
are/VBP
better/RBR
prepared/VBN
today/RB
to/TO
handle/VB
a/DT
decline/NN
than/IN
they/PRP
were/VBD
two/CD
years/NNS
ago/RB
./.
The/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
now/RB
has/VBZ
the/DT
capacity/NN
to/TO
handle/VB
a/DT
volume/NN
of/IN
nearly/RB
a/DT
billion/CD
shares/NNS
a/DT
day/NN
./.
Telephone/NN
service/NN
has/VBZ
been/VBN
improved/VBN
for/IN
customers/NNS
trying/VBG
to/TO
reach/VB
their/PRP$
brokers/NNS
,/,
and/CC
specialists/NNS
--/:
who/WP
I/PRP
believe/VBP
should/MD
stay/VB
,/,
despite/IN
the/DT
urgings/NNS
of/IN
some/DT
post-crash/JJ
critics/NNS
--/:
have/VB
larger/JJR
capital/NN
positions/NNS
./.
course/NN
,/,
specialists/NNS
'/POS
actions/NNS
alone/RB
can/MD
never/RB
prevent/VB
a/DT
major/JJ
crack/NN
in/IN
stock/NN
prices/NNS
./.
Witness/VB
the/DT
fact/NN
that/IN
trading/NN
in/IN
some/DT
stocks/NNS
closed/VBD
early/JJ
Friday/NNP
and/CC
opened/VBD
late/JJ
Monday/NNP
because/IN
of/IN
an/DT
excess/NN
of/IN
sell/NN
orders/NNS
./.
the/DT
task/NN
of/IN
improving/VBG
market/NN
performance/NN
remains/VBZ
unfinished/JJ
./.
Mr./NNP
Freund/NNP
,/,
former/JJ
chief/JJ
economist/NN
of/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
is/VBZ
a/DT
professor/NN
of/IN
economics/NNS
at/IN
Pace/NNP
University/NNP
's/POS
business/NN
school/NN
in/IN
New/NNP
York/NNP
./.
A/DT
UNIFIED/JJ
EUROPE/NNP
poses/VBZ
labor/NN
problems/NNS
and/CC
prospects/NNS
for/IN
U.S./NNP
firms/NNS
./.
The/DT
``/``
social/JJ
dimension/NN
''/''
--/:
worker/NN
concerns/NNS
--/:
of/IN
the/DT
European/NNP
Community/NNP
's/POS
plan/NN
to/TO
open/VB
its/PRP$
internal/JJ
borders/NNS
in/IN
1992/CD
could/MD
set/VB
the/DT
effort/NN
``/``
off/IN
the/DT
rails/NNS
''/''
if/IN
not/RB
done/VBN
reasonably/RB
,/,
says/VBZ
General/NNP
Electric/NNP
senior/JJ
vice/NN
president/NN
Frank/NNP
Doyle/NNP
./.
U.S./NNP
companies/NNS
wanting/VBG
to/TO
expand/VB
in/IN
Europe/NNP
face/VBP
``/``
tough/JJ
pressure/NN
''/''
from/IN
unions/NNS
in/IN
nations/NNS
such/JJ
as/IN
West/NNP
Germany/NNP
,/,
which/WDT
play/VBP
a/DT
big/JJ
consulting/NN
role/NN
in/IN
management/NN
decisions/NNS
,/,
he/PRP
says/VBZ
./.
FMC/NNP
Corp./NNP
and/CC
Baxter/NNP
International/NNP
say/VBP
unions/NNS
also/RB
wo/MD
n't/RB
like/VB
plant/NN
relocations/NNS
and/CC
needed/VBN
restructuring/NN
,/,
which/WDT
means/VBZ
layoffs/NNS
./.
Many/JJ
employers/NNS
have/VBP
already/RB
begun/VBN
moving/VBG
to/TO
southern/JJ
countries/NNS
such/JJ
as/IN
Spain/NNP
and/CC
Italy/NNP
,/,
where/WRB
wages/NNS
are/VBP
low/JJ
and/CC
unions/NNS
are/VBP
weaker/JJR
;/:
demand/NN
for/IN
trained/VBN
labor/NN
and/CC
managers/NNS
will/MD
rise/VB
there/RB
,/,
FMC/NNP
says/VBZ
./.
Pfizer/NNP
,/,
Fluor/NNP
and/CC
GE/NNP
see/VBP
big/JJ
``/``
EC/NNP
92/CD
''/''
pluses/NNS
:/:
a/DT
push/NN
for/IN
job/NN
training/NN
and/CC
ease/NN
in/IN
moving/VBG
and/CC
finding/VBG
workers/NNS
./.
CLUBBING/VBG
A/DT
FAN/NN
was/VBD
n't/RB
the/DT
Baltimore/NNP
Orioles/NNP
'/POS
fault/NN
./.
So/RB
said/VBD
a/DT
federal/JJ
judge/NN
,/,
in/IN
a/DT
case/NN
involving/VBG
two/CD
players/NNS
for/IN
the/DT
minor/JJ
league/NN
Bluefield/NNP
,/,
Va./NNP
,/,
Orioles/NNP
,/,
a/DT
Baltimore/NNP
farm/NN
team/NN
./.
The/DT
players/NNS
were/VBD
heckled/VBN
by/IN
a/DT
patron/NN
during/IN
a/DT
July/NNP
4/CD
,/,
1988/CD
,/,
game/NN
with/IN
the/DT
Martinsville/NNP
Phillies/NNP
./.
Like/IN
its/PRP$
parent/NN
that/DT
year/NN
,/,
``/``
Bluefield/NNP
was/VBD
not/RB
having/VBG
a/DT
good/JJ
year/NN
,/,
''/''
the/DT
judge/NN
said/VBD
./.
After/IN
the/DT
game/NN
``/``
Bluefield/NNP
lost/VBD
,/,
9-8/CD
,/,
stranding/VBG
three/CD
runners/NNS
in/IN
.../:
the/DT
ninth/JJ
,/,
''/''
he/PRP
noted/VBD
)/)
,/,
trouble/NN
began/VBD
./.
More/JJR
taunting/NN
in/IN
the/DT
parking/NN
lot/NN
,/,
the/DT
players/NNS
said/VBD
,/,
led/VBD
to/TO
a/DT
fight/NN
./.
The/DT
fan/NN
said/VBD
he/PRP
was/VBD
punched/VBN
and/CC
kicked/VBN
by/IN
one/CD
player/NN
and/CC
that/IN
the/DT
other/JJ
broke/VBD
his/PRP$
jaw/NN
with/IN
a/DT
baseball/NN
bat/NN
./.
The/DT
judge/NN
dismissed/VBD
the/DT
fan/NN
's/POS
suit/NN
against/IN
the/DT
team/NN
,/,
however/RB
,/,
ruling/VBG
the/DT
Orioles/NNP
innocent/JJ
of/IN
negligent/JJ
hiring/NN
,/,
and/CC
not/RB
responsible/JJ
for/IN
a/DT
fight/NN
that/WDT
was/VBD
outside/IN
the/DT
players/NNS
'/POS
employment/NN
./.
PROPOSALS/NNS
ARISE/VBP
for/IN
coping/VBG
with/IN
the/DT
shortage/NN
of/IN
nurses/NNS
./.
An/DT
Association/NNP
of/IN
Academic/NNP
Health/NNP
Centers/NNP
report/NN
urges/VBZ
freeing/VBG
nurses/NNS
from/IN
duties/NNS
that/WDT
do/VBP
n't/RB
require/VB
special/JJ
skills/NNS
./.
It/PRP
also/RB
recommends/VBZ
better/JJR
retirement/NN
and/CC
day-care/NN
benefits/NNS
,/,
and/CC
basing/VBG
pay/NN
on/IN
education/NN
,/,
experience/NN
and/CC
nurses/NNS
'/POS
demanding/JJ
work/NN
schedules/NNS
./.
But/CC
it/PRP
opposes/VBZ
an/DT
American/NNP
Medical/NNP
Association/NNP
proposal/NN
for/IN
creating/VBG
a/DT
``/``
registered/JJ
care/NN
technologist/NN
,/,
''/''
as/IN
``/``
potentially/RB
divisive/JJ
''/''
;/:
it/PRP
says/VBZ
the/DT
job/NN
would/MD
entail/VB
an/DT
unwanted/JJ
new/JJ
doctor/NN
's/POS
``/``
bedside/NN
''/''
extension/NN
./.
Over/IN
a/DT
third/JJ
of/IN
618/CD
hospitals/NNS
surveyed/VBN
by/IN
consultant/NN
Hewitt/NNP
Associates/NNP
use/VBP
a/DT
``/``
clinical/JJ
ladder/NN
,/,
''/''
basing/VBG
advancement/NN
on/IN
performance/NN
and/CC
education/NN
./.
Many/RB
also/RB
use/VB
recruiting/VBG
bonuses/NNS
,/,
tuition/NN
reimbursement/NN
,/,
loan/NN
repayment/NN
or/CC
child-care/JJ
help/NN
./.
Some/DT
give/VBP
lump-sum/JJ
incentives/NNS
./.
MRA/NNP
Staffing/NNP
Systems/NNP
signs/VBZ
up/RP
nurses/NNS
for/IN
paid/VBN
travel/NN
,/,
promising/VBG
annual/JJ
income/NN
up/IN
to/TO
$/$
50,000/CD
and/CC
free/JJ
or/CC
subsidized/VBN
housing/NN
./.
TREATING/VBG
EMPLOYEES/NNS
with/IN
respect/NN
is/VBZ
crucial/JJ
for/IN
managers/NNS
,/,
says/VBZ
consultant/NN
Hay/NNP
Group/NNP
after/IN
surveys/NNS
of/IN
a/DT
million/CD
workers/NNS
./.
It/PRP
's/VBZ
in/IN
their/PRP$
top/JJ
five/CD
``/``
work/NN
values/NNS
./.
''/''
Fully/RB
80/CD
%/NN
of/IN
employees/NNS
who/WP
say/VBP
their/PRP$
bosses/NNS
treat/VBP
them/PRP
with/IN
respect/NN
,/,
but/CC
only/RB
a/DT
third/JJ
of/IN
those/DT
who/WP
do/VBP
n't/RB
feel/VB
respected/VBN
say/VBP
they/PRP
're/VBP
satisfied/VBN
with/IN
where/WRB
they/PRP
work/VBP
./.
SPRUCING/VBG
UP/RP
THE/DT
DIGS/NNS
:/:
About/RB
200/CD
employees/NNS
of/IN
the/DT
Maryland/NNP
Department/NNP
of/IN
Economic/NNP
and/CC
Employment/NNP
Development/NNP
for/IN
four/CD
months/NNS
painted/VBD
walls/NNS
,/,
polished/VBD
and/CC
carpeted/VBD
floors/NNS
,/,
bought/VBD
plants/NNS
,/,
cleaned/VBD
windows/NNS
and/CC
blinds/NNS
,/,
and/CC
hung/VBD
pictures/NNS
at/IN
the/DT
agency/NN
's/POS
Baltimore/NNP
office/NN
./.
The/DT
3,000/CD
hours/NNS
of/IN
work/NN
will/MD
save/VB
the/DT
state/NN
$/$
55,000/CD
./.
CURBING/VBG
WAGE/NN
BOOSTS/NNS
will/MD
get/VB
high/JJ
priority/NN
again/RB
in/IN
1990/CD
collective/JJ
bargaining/NN
,/,
a/DT
Bureau/NNP
of/IN
National/NNP
Affairs/NNP
survey/NN
of/IN
250/CD
companies/NNS
with/IN
pacts/NNS
expiring/VBG
next/JJ
year/NN
indicates/VBZ
./.
Despite/IN
labor-shortage/NN
warnings/NNS
,/,
80/CD
%/NN
aim/VBP
for/IN
first-year/JJ
wage/NN
increases/NNS
of/IN
under/IN
4/CD
%/NN
;/:
and/CC
77/CD
%/NN
say/VBP
they/PRP
'd/MD
try/VB
to/TO
replace/VB
workers/NNS
,/,
if/IN
struck/VBN
,/,
or/CC
would/MD
consider/VB
it/PRP
./.
TEMPORARY/JJ
WORKERS/NNS
have/VBP
good/JJ
educations/NNS
,/,
the/DT
National/NNP
Association/NNP
of/IN
Temporary/NNP
Services/NNP
says/VBZ
;/:
its/PRP$
survey/NN
of/IN
2,508/CD
such/JJ
employees/NNS
shows/VBZ
82/CD
%/NN
with/IN
more/JJR
than/IN
a/DT
high-school/JJ
education/NN
,/,
and/CC
31/CD
%/NN
with/IN
college/NN
degrees/NNS
./.
About/RB
12/CD
%/NN
have/VBP
retired/VBN
from/IN
a/DT
full-time/JJ
job/NN
,/,
while/IN
54/CD
%/NN
were/VBD
asked/VBN
to/TO
stay/VB
on/IN
full/JJ
time/NN
./.
HOME-SALE/JJ
LOSSES/NNS
rise/VBP
,/,
but/CC
they/PRP
're/VBP
often/RB
covered/VBN
by/IN
employers/NNS
./.
But/CC
they/PRP
search/VBP
for/IN
ways/NNS
to/TO
limit/VB
the/DT
damage/NN
./.
A/DT
third/JJ
of/IN
439/CD
companies/NNS
surveyed/VBN
by/IN
the/DT
Employee/NNP
Relocation/NNP
Council/NNP
report/VBP
a/DT
rise/NN
in/IN
1988/CD
sales/NNS
losses/NNS
over/IN
1987/CD
./.
About/RB
72/CD
%/NN
reimburse/VBP
for/IN
all/DT
or/CC
some/DT
losses/NNS
./.
Since/IN
1984/CD
,/,
more/JJR
companies/NNS
give/VBP
sales-loss/JJ
aid/NN
,/,
as/IN
many/JJ
real-estate/NN
values/NNS
depreciated/VBD
,/,
the/DT
council/NN
says/VBZ
./.
RJR/NNP
Nabisco/NNP
pays/VBZ
up/IN
to/TO
$/$
30,000/CD
of/IN
losses/NNS
,/,
including/VBG
improvements/NNS
./.
Goodrich/NNP
wo/MD
n't/RB
ensure/VB
loss/NN
coverage/NN
,/,
but/CC
will/MD
prevent/VB
a/DT
``/``
catastrophic/JJ
loss/NN
''/''
;/:
it/PRP
has/VBZ
given/VBN
some/DT
employees/NNS
the/DT
full/JJ
purchase/NN
price/NN
when/WRB
values/NNS
fell/VBD
from/IN
concern/NN
over/IN
dangers/NNS
posed/VBN
by/IN
a/DT
disposal/NN
site/NN
./.
Federal/NNP
Express/NNP
,/,
Dow/NNP
Chemical/NNP
,/,
Ford/NNP
and/CC
National/NNP
City/NNP
Corp./NNP
will/MD
buy/VB
the/DT
home/NN
or/CC
let/VB
the/DT
worker/NN
sell/VB
to/TO
an/DT
outside/JJ
firm/NN
,/,
but/CC
usually/RB
wo/MD
n't/RB
cover/VB
a/DT
loss/NN
./.
Since/IN
1984/CD
,/,
firms/NNS
offering/VBG
prepurchase/JJ
house/NN
appraisals/NNS
,/,
to/TO
deter/VB
overpaying/VBG
,/,
rose/VBD
to/TO
40/CD
%/NN
of/IN
those/DT
the/DT
council/NN
polled/VBD
,/,
from/IN
28/CD
%/NN
./.
THE/DT
CHECKOFF/NN
:/:
The/DT
National/NNP
Academy/NNP
of/IN
Engineering/NNP
gives/VBZ
two/CD
inventors/NNS
of/IN
the/DT
semiconductor/NN
microchip/NN
a/DT
$/$
350,000/CD
achievement/NN
award/NN
.../:
./.
Now/RB
,/,
that/DT
's/VBZ
reactionary/JJ
:/:
Letter/NNP
Carriers/NNP
union/NN
president/NN
Vincent/NNP
Sombrotto/NNP
accuses/VBZ
Philadelphia/NNP
postmaster/NN
Charles/NNP
James/NNP
of/IN
``/``
12th/JJ
century/NN
.../:
oppressive/JJ
management/NN
tactics/NNS
./.
''/''
Yesterday/NN
was/VBD
,/,
in/IN
the/DT
words/NNS
of/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
Chairman/NNP
John/NNP
J./NNP
Phelan/NNP
Jr./NNP
,/,
just/RB
your/PRP$
``/``
reasonably/RB
normal/JJ
,/,
400/CD
million-share/JJ
,/,
up/RB
88-points/JJ
day/NN
./.
''/''
When/WRB
it/PRP
was/VBD
all/DT
over/RB
and/CC
stocks/NNS
had/VBD
staged/VBN
a/DT
huge/JJ
recovery/NN
,/,
Big/NNP
Board/NNP
officials/NNS
were/VBD
self-congratulatory/JJ
about/IN
how/WRB
well/RB
the/DT
day/NN
had/VBD
gone/VBN
./.
They/PRP
said/VBD
the/DT
exchange/NN
's/POS
trading/NN
procedures/NNS
,/,
personnel/NNS
,/,
equipment/NN
and/CC
links/NNS
with/IN
other/JJ
exchanges/NNS
could/MD
n't/RB
have/VB
performed/VBN
better/RBR
./.
``/``
We/PRP
had/VBD
no/DT
operating/NN
problems/NNS
at/IN
all/DT
,/,
''/''
Mr./NNP
Phelan/NNP
said/VBD
after/IN
the/DT
market/NN
closed/VBD
./.
``/``
All/DT
the/DT
things/NNS
that/IN
we/PRP
set/VBD
up/RP
to/TO
slow/VB
down/RP
the/DT
process/NN
,/,
to/TO
let/VB
people/NNS
know/VB
that/IN
the/DT
market/NN
was/VBD
in/IN
an/DT
extreme/JJ
position/NN
,/,
worked/VBD
extremely/RB
well/RB
./.
''/''
Prices/NNS
for/IN
the/DT
416.3/CD
million/CD
shares/NNS
that/WDT
changed/VBD
hands/NNS
during/IN
the/DT
session/NN
were/VBD
carried/VBN
on/IN
the/DT
exchange/NN
's/POS
trading/NN
tape/NN
with/IN
barely/RB
a/DT
delay/NN
,/,
officials/NNS
said/VBD
./.
While/IN
reaching/VBG
blockbuster/NN
proportions/NNS
yesterday/NN
,/,
the/DT
volume/NN
was/VBD
still/RB
well/RB
within/IN
the/DT
600/CD
million-share/JJ
capacity/NN
that/IN
the/DT
exchange/NN
has/VBZ
said/VBD
it/PRP
can/MD
handle/VB
daily/RB
since/IN
beefing/VBG
up/RP
its/PRP$
computers/NNS
after/IN
the/DT
October/NNP
1987/CD
crash/NN
./.
The/DT
so-called/JJ
circuit/NN
breakers/NNS
devised/VBN
by/IN
the/DT
Big/NNP
Board/NNP
and/CC
the/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
to/TO
quell/VB
free/JJ
falls/NNS
in/IN
stock/NN
and/CC
futures/NNS
prices/NNS
were/VBD
n't/RB
triggered/VBN
yesterday/NN
because/IN
the/DT
markets/NNS
were/VBD
higher/JJR
for/IN
most/RBS
of/IN
the/DT
day/NN
./.
Despite/IN
traders/NNS
'/POS
complaints/NNS
,/,
Mr./NNP
Phelan/NNP
said/VBD
the/DT
links/NNS
with/IN
the/DT
Chicago/NNP
futures/NNS
market/NN
worked/VBD
as/RB
planned/VBN
in/IN
Friday/NNP
's/POS
rout/NN
to/TO
provide/VB
a/DT
cooling-off/JJ
period/NN
./.
Of/IN
greater/JJR
help/NN
,/,
the/DT
Big/NNP
Board/NNP
chairman/NN
said/VBD
,/,
was/VBD
the/DT
``/``
natural/JJ
circuit/NN
breaker/NN
''/''
of/IN
the/DT
weekend/NN
,/,
that/WDT
provided/VBD
a/DT
breathing/NN
period/NN
that/IN
``/``
brought/VBN
rationality/NN
back/RB
to/TO
the/DT
market/NN
./.
''/''
Chicken/NN
Chains/NNS
Ruffled/VBN
By/IN
Loss/NN
of/IN
Customers/NNS
FAST-FOOD/NN
chicken/NN
chains/NNS
,/,
faced/VBN
with/IN
a/DT
worsening/VBG
business/NN
slump/NN
,/,
are/VBP
struggling/VBG
to/TO
hatch/VB
some/DT
new/JJ
marketing/NN
strategies/NNS
./.
The/DT
Crest/NNP
Report/NNP
,/,
which/WDT
tracks/VBZ
consumer/NN
purchases/NNS
,/,
says/VBZ
customer/NN
traffic/NN
at/IN
chicken/NN
restaurants/NNS
fell/VBD
10/CD
%/NN
in/IN
the/DT
second/JJ
quarter/NN
,/,
while/IN
the/DT
overall/JJ
fast-food/NN
customer/NN
count/NN
was/VBD
down/RB
2/CD
%/NN
./.
Chicken/NN
business/NN
is/VBZ
off/JJ
largely/RB
because/IN
of/IN
more/JJR
competition/NN
from/IN
grocery-store/JJ
convenience/NN
food/NN
,/,
home-delivered/JJ
pizza/NN
and/CC
other/JJ
takeout/NN
fare/NN
,/,
says/VBZ
a/DT
spokesman/NN
for/IN
the/DT
report/NN
,/,
a/DT
publication/NN
of/IN
NPD/NNP
Group/NNP
,/,
a/DT
market/NN
research/NN
firm/NN
in/IN
Port/NNP
Washington/NNP
,/,
N.Y/NNP
./.
The/DT
loss/NN
of/IN
more/JJR
customers/NNS
is/VBZ
the/DT
latest/JJS
in/IN
a/DT
string/NN
of/IN
problems/NNS
./.
Church/NNP
's/POS
Fried/NNP
Chicken/NNP
Inc./NNP
and/CC
Popeye/NNP
's/POS
Famous/NNP
Fried/NNP
Chicken/NNP
Inc./NNP
,/,
which/WDT
have/VBP
merged/VBN
,/,
are/VBP
still/RB
troubled/VBN
by/IN
overlapping/JJ
restaurant/NN
locations/NNS
./.
Chicken/NN
chains/NNS
also/RB
are/VBP
feeling/VBG
more/JJR
pressure/NN
from/IN
McDonald/NNP
's/POS
Corp./NNP
,/,
which/WDT
introduced/VBD
its/PRP$
McChicken/NNP
sandwich/NN
this/DT
year/NN
and/CC
recently/RB
tested/VBD
the/DT
sale/NN
of/IN
individual/JJ
pieces/NNS
of/IN
chicken/NN
./.
New/JJ
management/NN
at/IN
Kentucky/NNP
Fried/NNP
Chicken/NNP
,/,
a/DT
unit/NN
of/IN
PepsiCo/NNP
Inc./NNP
,/,
has/VBZ
fought/VBN
back/RB
with/IN
new/JJ
medium/NN
and/CC
large/JJ
chicken/NN
sandwiches/NNS
for/IN
the/DT
lunch/NN
crowd/NN
./.
And/CC
the/DT
chain/NN
is/VBZ
testing/VBG
products/NNS
that/WDT
are/VBP
n't/RB
fried/VBN
,/,
such/JJ
as/IN
``/``
char-grilled/JJ
''/''
chicken/NN
,/,
to/TO
try/VB
to/TO
win/VB
health-conscious/JJ
consumers/NNS
./.
Kentucky/NNP
Fried/NNP
Chicken/NNP
also/RB
is/VBZ
testing/VBG
home-delivery/NN
of/IN
chicken/NN
,/,
which/WDT
could/MD
be/VB
a/DT
hit/NN
with/IN
stay-at-home/JJ
diners/NNS
./.
But/CC
some/DT
fast-food/NN
industry/NN
analysts/NNS
say/VBP
problems/NNS
with/IN
keeping/VBG
chicken/NN
warm/JJ
and/CC
fresh/JJ
must/MD
be/VB
solved/VBN
first/RB
./.
A/DT
Kentucky/NNP
Fried/NNP
Chicken/NNP
spokesman/NN
,/,
however/RB
,/,
disputed/VBD
the/DT
notion/NN
that/IN
the/DT
delivery/NN
service/NN
experienced/VBD
problems/NNS
in/IN
some/DT
markets/NNS
where/WRB
testing/NN
has/VBZ
been/VBN
discontinued/VBN
./.
He/PRP
says/VBZ
the/DT
test/NN
is/VBZ
continuing/VBG
in/IN
Chicago/NNP
,/,
Columbus/NNP
,/,
Ohio/NNP
,/,
and/CC
a/DT
few/JJ
other/JJ
cities/NNS
./.
The/DT
advertising/NN
industry/NN
is/VBZ
buzzing/VBG
with/IN
rumors/NNS
that/IN
Kentucky/NNP
Fried/NNP
Chicken/NNP
will/MD
drop/VB
Young/NNP
&/CC
Rubicam/NNP
and/CC
seek/VB
a/DT
new/JJ
ad/NN
agency/NN
./.
But/CC
the/DT
company/NN
declines/VBZ
to/TO
comment/VB
./.
Emanuel/NNP
Goldman/NNP
,/,
a/DT
PaineWebber/NNP
Inc./NNP
analyst/NN
,/,
predicts/VBZ
Kentucky/NNP
Fried/NNP
Chicken/NNP
will/MD
post/VB
an/DT
11/CD
%/NN
drop/NN
in/IN
1989/CD
net/JJ
income/NN
./.
``/``
They/PRP
've/VBP
been/VBN
laggard/JJ
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
but/CC
they/PRP
'll/MD
have/VB
to/TO
become/VB
more/RBR
aggressive/JJ
./.
''/''
Reluctant/JJ
Advertisers/NNS
Try/VBP
Soft-Sell/JJ
Spots/NNS
CALL/VB
IT/PRP
un-advertising/NN
./.
Pittsburgh/NNP
consultant/NN
David/NNP
Bear/NNP
is/VBZ
selling/VBG
a/DT
soft/JJ
approach/NN
to/TO
clients/NNS
who/WP
want/VBP
exposure/NN
yet/CC
shun/VBP
pushy/JJ
ads/NNS
./.
His/PRP$
ploy/NN
:/:
60-second/JJ
radio/NN
spots/NNS
that/WDT
offer/VBP
helpful/JJ
hints/NNS
./.
The/DT
only/JJ
plug/NN
for/IN
the/DT
sponsor/NN
is/VBZ
a/DT
brief/JJ
mention/NN
at/IN
the/DT
end/NN
of/IN
the/DT
spot/NN
./.
The/DT
messages/NNS
resemble/VBP
the/DT
Business/NNP
Traveler/NNP
,/,
a/DT
daily/JJ
dose/NN
of/IN
travel/NN
tips/NNS
developed/VBN
by/IN
Mr./NNP
Bear/NNP
and/CC
sponsored/VBN
by/IN
travel/NN
agencies/NNS
in/IN
several/JJ
major/JJ
cities/NNS
./.
New/JJ
un-advertisers/NNS
include/VBP
Burt/NNP
Hill/NNP
Kosar/NNP
Rittlemann/NNP
Associates/NNP
,/,
a/DT
Butler/NNP
,/,
Pa./NNP
,/,
architectural/JJ
firm/NN
./.
Its/PRP$
radio/NN
series/NN
features/VBZ
such/JJ
spots/NNS
as/IN
``/``
Floodlights/NNP
:/:
Evening/NNP
Wear/NNP
for/IN
Urban/NNP
Structures/NNP
''/''
and/CC
``/``
Building/VBG
a/DT
Place/NN
to/TO
Park/VB
./.
''/''
A/DT
harder/JJR
sell/NN
,/,
says/VBZ
John/NNP
Kosar/NNP
,/,
the/DT
firm/NN
's/POS
president/NN
,/,
would/MD
``/``
detract/VB
from/IN
the/DT
profession/NN
./.
''/''
Hospitals/NNS
have/VBP
signed/VBN
up/RP
to/TO
use/VB
the/DT
messages/NNS
to/TO
promote/VB
fundraisers/NNS
,/,
and/CC
Equitable/NNP
Gas/NNP
Co./NNP
is/VBZ
considering/VBG
the/DT
format/NN
to/TO
offer/VB
energy/NN
tips/NNS
to/TO
consumers/NNS
./.
But/CC
such/JJ
spots/NNS
can/MD
be/VB
too/RB
soft/JJ
./.
``/``
There/EX
's/VBZ
always/RB
a/DT
risk/NN
of/IN
lost/VBN
messages/NNS
,/,
''/''
says/VBZ
John/NNP
Fitzgerald/NNP
,/,
chairman/NN
of/IN
Ketchum/NNP
Advertising/NNP
USA/NNP
,/,
which/WDT
created/VBD
similar/JJ
radio/NN
spots/NNS
for/IN
Pittsburgh/NNP
National/NNP
Bank/NNP
./.
``/``
It/PRP
's/VBZ
a/DT
question/NN
of/IN
how/WRB
much/JJ
credibility/NN
you/PRP
gain/VBP
for/IN
the/DT
possible/JJ
loss/NN
of/IN
recognition/NN
./.
''/''
Retailer/NN
Sees/VBZ
Pitfalls/NNS
In/IN
Environmental/JJ
Push/NN
HERE/RB
'S/VBZ
a/DT
retailer/NN
that/WDT
's/VBZ
getting/VBG
tough/JJ
in/IN
the/DT
push/NN
for/IN
environmentally/RB
safe/JJ
packaging/NN
and/CC
products/NNS
./.
Big/NNP
Bear/NNP
Supermarkets/NNP
Inc./NNP
,/,
a/DT
grocery/NN
chain/NN
based/VBN
in/IN
San/NNP
Diego/NNP
,/,
plans/VBZ
to/TO
display/VB
shelf/NN
cards/NNS
and/CC
distribute/VB
pamphlets/NNS
recommending/VBG
products/NNS
deemed/VBN
safe/JJ
for/IN
the/DT
environment/NN
./.
The/DT
choices/NNS
will/MD
be/VB
based/VBN
on/IN
research/NN
by/IN
the/DT
San/NNP
Diego/NNP
Environmental/NNP
Health/NNP
Coalition/NNP
and/CC
will/MD
include/VB
products/NNS
like/IN
Murphy/NNP
's/POS
Oil/NNP
Soap/NNP
and/CC
other/JJ
noncorrosive/JJ
cleaners/NNS
./.
But/CC
the/DT
chain/NN
is/VBZ
quickly/RB
realizing/VBG
the/DT
pitfalls/NNS
of/IN
such/JJ
endorsements/NNS
./.
For/IN
example/NN
,/,
it/PRP
recommends/VBZ
nonchlorinated/JJ
dishwasher/NN
detergent/NN
and/CC
puts/VBZ
Sunlight/NNP
on/IN
its/PRP$
environmentally/RB
safe/JJ
list/NN
./.
That/DT
does/VBZ
n't/RB
thrill/VB
Procter/NNP
&/CC
Gamble/NNP
Co./NNP
,/,
maker/NN
of/IN
Cascade/NNP
dishwasher/NN
detergent/NN
./.
A/DT
company/NN
spokesman/NN
questioned/VBD
the/DT
validity/NN
of/IN
the/DT
list/NN
,/,
noting/VBG
that/DT
chlorine/NN
is/VBZ
present/JJ
in/IN
all/DT
major/JJ
dishwasher/NN
detergents/NNS
./.
In/IN
fact/NN
,/,
Lever/NNP
Bros./NNP
confirms/VBZ
that/IN
its/PRP$
Sunlight/NNP
brand/NN
does/VBZ
contain/VB
chlorine/NN
bleach/NN
,/,
even/RB
though/IN
it/PRP
is/VBZ
n't/RB
listed/VBN
on/IN
the/DT
label/NN
for/IN
the/DT
powder/NN
version/NN
./.
Thomas/NNP
G./NNP
Dahlen/NNP
,/,
Big/NNP
Bear/NNP
's/POS
executive/JJ
vice/NN
president/NN
,/,
said/VBD
the/DT
chain/NN
is/VBZ
still/RB
reviewing/VBG
its/PRP$
product/NN
list/NN
to/TO
avoid/VB
such/JJ
problems/NNS
./.
``/``
Our/PRP$
intent/NN
is/VBZ
to/TO
promote/VB
the/DT
best/JJS
alternative/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
And/CC
it/PRP
's/VBZ
important/JJ
that/IN
we/PRP
be/VB
accurate/JJ
./.
''/''
But/CC
in/IN
the/DT
end/NN
,/,
customers/NNS
'/POS
wishes/NNS
are/VBP
what/WP
will/MD
prevail/VB
./.
Big/NNP
Bear/NNP
does/VBZ
n't/RB
care/VB
for/IN
disposable/JJ
diapers/NNS
,/,
which/WDT
are/VBP
n't/RB
biodegradable/JJ
./.
Yet/CC
parents/NNS
demand/VBP
them/PRP
./.
Says/VBZ
Mr./NNP
Dahlen/NNP
,/,
``/``
We/PRP
'll/MD
still/RB
be/VB
forced/VBN
to/TO
sell/VB
items/NNS
we/PRP
might/MD
not/RB
philosophically/RB
agree/VB
with/IN
./.
''/''
Odds/NNS
and/CC
Ends/NNS
NEATNESS/NN
does/VBZ
count/VB
--/:
at/IN
least/JJS
in/IN
the/DT
grocery/NN
store/NN
./.
A/DT
study/NN
by/IN
Safeway/NNP
's/POS
Scanner/NNP
Marketing/NNP
Research/NNP
shows/VBZ
soap/NN
sales/NNS
climbed/VBD
5/CD
%/NN
when/WRB
bars/NNS
were/VBD
neatly/RB
stacked/VBN
on/IN
shelves/NNS
instead/RB
of/IN
dumped/VBD
in/IN
a/DT
wire/NN
basket/NN
.../:
./.
Which/WDT
celebrity/NN
endorsers/NNS
are/VBP
most/RBS
believable/JJ
?/.
For/IN
the/DT
third/JJ
year/NN
in/IN
a/DT
row/NN
,/,
consumers/NNS
voted/VBD
Bill/NNP
Cosby/NNP
first/JJ
and/CC
James/NNP
Garner/NNP
second/JJ
in/IN
persuasiveness/NN
as/IN
spokesmen/NNS
in/IN
TV/NN
commercials/NNS
,/,
according/VBG
to/TO
Video/NNP
Storyboard/NNP
Tests/NNP
,/,
New/NNP
York/NNP
./.
Michael/NNP
J./NNP
Fox/NNP
replaced/VBD
Bruce/NNP
Willis/NNP
in/IN
third/JJ
place/NN
;/:
Cher/NNP
placed/VBD
fourth/JJ
for/IN
the/DT
second/JJ
time/NN
./.
Health/NNP
and/CC
Human/NNP
Services/NNP
Secretary/NNP
Louis/NNP
Sullivan/NNP
has/VBZ
chosen/VBN
Antonia/NNP
Novello/NNP
to/TO
be/VB
the/DT
next/JJ
surgeon/NN
general/NN
,/,
Bush/NNP
administration/NN
officials/NNS
said/VBD
./.
If/IN
she/PRP
is/VBZ
nominated/VBN
by/IN
President/NNP
Bush/NNP
and/CC
confirmed/VBN
by/IN
the/DT
Senate/NNP
,/,
Dr./NNP
Novello/NNP
would/MD
succeed/VB
C./NNP
Everett/NNP
Koop/NNP
,/,
who/WP
rattled/VBD
liberals/NNS
and/CC
conservatives/NNS
alike/RB
with/IN
his/PRP$
outspoken/JJ
views/NNS
on/IN
a/DT
range/NN
of/IN
health/NN
issues/NNS
./.
Dr./NNP
Novello/NNP
,/,
an/DT
expert/NN
on/IN
pediatric/JJ
kidney/NN
diseases/NNS
,/,
is/VBZ
deputy/JJ
director/NN
of/IN
the/DT
National/NNP
Institute/NNP
of/IN
Child/NNP
Health/NNP
and/CC
Human/NNP
Development/NNP
./.
She/PRP
has/VBZ
also/RB
served/VBN
on/IN
several/JJ
task/NN
forces/NNS
on/IN
acquired/VBN
immune/JJ
deficiency/NN
syndrome/NN
./.
Dr./NNP
Novello/NNP
's/POS
office/NN
said/VBD
she/PRP
would/MD
n't/RB
talk/VB
with/IN
reporters/NNS
,/,
and/CC
it/PRP
refused/VBD
to/TO
release/VB
any/DT
information/NN
about/IN
her/PRP
./.
The/DT
newsletter/NN
Medicine/NNP
&/CC
Health/NNP
,/,
which/WDT
first/RB
disclosed/VBD
her/PRP$
selection/NN
by/IN
Dr./NNP
Sullivan/NNP
,/,
said/VBD
she/PRP
is/VBZ
44/CD
years/NNS
old/JJ
and/CC
she/PRP
studied/VBD
at/IN
the/DT
University/NNP
of/IN
Puerto/NNP
Rico/NNP
School/NNP
of/IN
Medicine/NNP
./.
The/DT
continuing/VBG
series/NN
of/IN
HUD/NNP
scandals/NNS
is/VBZ
a/DT
sadly/RB
predictable/JJ
result/NN
of/IN
pork-barrel/NN
politics/NNS
./.
Nevertheless/RB
,/,
lobbies/NNS
such/JJ
as/IN
the/DT
National/NNP
Association/NNP
of/IN
Home/NNP
Builders/NNP
NAHB/NNP
Capitol/NNP
Hill/NNP
for/IN
more/JJR
special-interest/JJ
spending/NN
./.
Kent/NNP
Colton/NNP
,/,
NAHB/NNP
executive/JJ
vice/NN
president/NN
,/,
argues/VBZ
that/IN
the/DT
U.S./NNP
faces/VBZ
a/DT
multifaceted/JJ
housing/NN
crisis/NN
--/:
reduced/VBN
affordability/NN
of/IN
homes/NNS
for/IN
first-time/JJ
buyers/NNS
,/,
increased/VBN
homelessness/NN
,/,
and/CC
lower/JJR
apartment/NN
construction/NN
rates/NNS
--/:
that/DT
will/MD
be/VB
``/``
very/RB
difficult/JJ
''/''
to/TO
solve/VB
``/``
without/IN
expanded/VBN
federal/JJ
resources/NNS
./.
''/''
There/EX
's/VBZ
nothing/NN
unusual/JJ
about/IN
business/NN
groups/NNS
pushing/VBG
for/IN
more/JJR
government/NN
spending/NN
./.
But/CC
the/DT
NAHB/NNP
was/VBD
created/VBN
in/IN
1943/CD
out/IN
of/IN
an/DT
organization/NN
that/WDT
made/VBD
its/PRP$
name/NN
fighting/VBG
a/DT
Roosevelt/NNP
administration/NN
proposal/NN
to/TO
take/VB
over/RP
all/DT
defense/NN
housing/NN
production/NN
./.
Through/IN
the/DT
years/NNS
the/DT
association/NN
has/VBZ
been/VBN
an/DT
active/JJ
member/NN
of/IN
the/DT
taxpayer/NN
's/POS
coalition/NN
,/,
pushing/VBG
for/IN
such/JJ
initiatives/NNS
as/IN
the/DT
balanced-budget/JJ
amendment/NN
./.
Yet/RB
on/IN
matters/NNS
close/JJ
to/TO
,/,
er/UH
,/,
home/NN
.../:
``/``
The/DT
HUD/NNP
budget/NN
has/VBZ
dropped/VBN
by/IN
more/JJ
than/IN
70/CD
%/NN
since/IN
1980/CD
,/,
''/''
argues/VBZ
Mr./NNP
Colton/NNP
./.
``/``
We/PRP
've/VBP
taken/VBN
more/JJR
than/IN
our/PRP$
fair/JJ
share/NN
./.
I/PRP
would/MD
n't/RB
have/VB
a/DT
problem/NN
if/IN
other/JJ
programs/NNS
had/VBD
taken/VBN
a/DT
similar/JJ
hit/NN
./.
''/''
But/CC
NAHB/NNP
support/NN
for/IN
subsidies/NNS
is/VBZ
not/RB
related/VBN
to/TO
the/DT
current/JJ
housing/NN
crunch/NN
;/:
over/IN
the/DT
years/NNS
the/DT
NAHB/NNP
has/VBZ
backed/VBN
a/DT
host/NN
of/IN
public/JJ
programs/NNS
./.
It/PRP
once/RB
pushed/VBD
for/IN
a/DT
national/JJ
housing/NN
production/NN
goal/NN
set/VBN
by/IN
the/DT
federal/JJ
government/NN
and/CC
has/VBZ
regularly/RB
advanced/VBN
anti-recession/JJ
housing/NN
measures/NNS
./.
Moreover/RB
,/,
explains/VBZ
one/CD
HUD/NNP
official/NN
,/,
the/DT
NAHB/NNP
remains/VBZ
susceptible/JJ
to/TO
internal/JJ
pressure/NN
from/IN
members/NNS
that/WDT
specialize/VBP
in/IN
subsidized/VBN
production/NN
./.
The/DT
association/NN
is/VBZ
pushing/VBG
an/DT
extensive/JJ
and/CC
expensive/JJ
wish-list/NN
,/,
which/WDT
would/MD
substantially/RB
boost/VB
spending/NN
above/IN
the/DT
current/JJ
level/NN
of/IN
more/JJ
than/IN
$/$
15/CD
billion/CD
annually/RB
./.
It/PRP
would/MD
like/VB
to/TO
peg/VB
the/DT
ceiling/NN
on/IN
Federal/NNP
Housing/NNP
Administration/NNP
mortgage/NN
guarantees/NNS
to/TO
95/CD
%/NN
of/IN
the/DT
median/JJ
price/NN
in/IN
a/DT
particular/JJ
market/NN
,/,
instead/RB
of/IN
limiting/VBG
it/PRP
to/TO
$/$
101,250/CD
;/:
reduce/VB
(/(
or/CC
even/RB
eliminate/VB
)/)
FHA/NNP
down-payment/NN
requirements/NNS
and/CC
increase/VB
the/DT
availability/NN
of/IN
variable-rate/JJ
mortgages/NNS
;/:
expand/VB
the/DT
Veterans/NNP
Affairs/NNP
Department/NNP
loan/NN
guarantee/NN
program/NN
;/:
provide/VB
``/``
adequate/JJ
''/''
funding/NN
for/IN
the/DT
Farmers/NNP
Home/NNP
Administration/NNP
FmHA/NNP
federal/JJ
funding/NN
and/CC
tax/NN
incentives/NNS
for/IN
the/DT
construction/NN
of/IN
low-income/JJ
and/CC
rental/NN
housing/NN
,/,
including/VBG
$/$
4/CD
billion/CD
in/IN
block/NN
grants/NNS
to/TO
states/NNS
and/CC
localities/NNS
;/:
and/CC
``/``
fully/RB
fund/VB
''/''
the/DT
McKinney/NNP
Act/NNP
,/,
a/DT
$/$
656/CD
million/CD
potpourri/NN
for/IN
the/DT
homeless/JJ
./.
Direct/JJ
federal/JJ
subsidies/NNS
for/IN
housing/NN
construction/NN
have/VBP
proved/VBN
intolerably/RB
expensive/JJ
in/IN
the/DT
past/NN
,/,
and/CC
inevitably/RB
are/VBP
twisted/VBN
to/TO
the/DT
benefit/NN
of/IN
well-connected/JJ
developers/NNS
and/CC
lobbyists/NNS
,/,
as/IN
demonstrated/VBN
by/IN
the/DT
ongoing/JJ
HUD/NNP
scandal/NN
,/,
or/CC
congressmen/NNS
./.
Indirect/JJ
subsidies/NNS
,/,
through/IN
the/DT
FHA/NNP
,/,
for/IN
instance/NN
,/,
are/VBP
little/RB
better/JJR
./.
Though/NNP
Mr./NNP
Colton/NNP
says/VBZ
expanding/VBG
FHA/NNP
lending/NN
would/MD
result/VB
in/IN
``/``
no/DT
cost/NN
to/TO
the/DT
government/NN
,/,
''/''
the/DT
mere/JJ
diversion/NN
of/IN
funds/NNS
from/IN
other/JJ
parts/NNS
of/IN
the/DT
economy/NN
and/CC
from/IN
other/JJ
forms/NNS
of/IN
housing/NN
(/(
such/JJ
as/IN
low-income/NN
the/DT
single-family/JJ
home/NN
market/NN
would/MD
result/VB
in/IN
a/DT
major/JJ
expense/NN
./.
More/RBR
important/JJ
,/,
housing/NN
programs/NNS
run/VBN
by/IN
HUD/NNP
,/,
the/DT
VA/NNP
,/,
and/CC
FmHA/NNP
are/VBP
awash/RB
in/IN
red/JJ
ink/NN
./.
The/DT
FHA/NNP
alone/RB
lost/VBD
$/$
4.2/CD
billion/CD
in/IN
fiscal/JJ
1988/CD
;/:
the/DT
government/NN
's/POS
equity/NN
in/IN
the/DT
agency/NN
,/,
essentially/RB
its/PRP$
reserve/NN
fund/NN
,/,
fell/VBD
to/TO
minus/IN
$/$
2.9/CD
billion/CD
./.
The/DT
federal/JJ
government/NN
has/VBZ
had/VBD
to/TO
pump/VB
in/RB
$/$
2.28/CD
billion/CD
into/IN
the/DT
VA/NNP
housing/NN
program/NN
since/IN
1984/CD
to/TO
keep/VB
the/DT
fund/NN
afloat/RB
and/CC
the/DT
VA/NNP
requested/VBD
an/DT
additional/JJ
$/$
120/CD
million/CD
for/IN
the/DT
fiscal/JJ
year/NN
just/RB
ended/VBD
./.
All/DT
told/VBD
,/,
the/DT
federal/JJ
government/NN
already/RB
guarantees/VBZ
more/JJR
than/IN
$/$
900/CD
billion/CD
of/IN
mortgages/NNS
./.
In/IN
its/PRP$
nicely/RB
produced/VBN
publication/NN
``/``
Where/WRB
Will/MD
Our/PRP$
Children/NNS
Live/VB
?/.
''/''
the/DT
NAHB/NNP
does/VBZ
acknowledge/VB
that/IN
``/``
of/IN
course/NN
,/,
the/DT
full/JJ
measure/NN
of/IN
housing/NN
affordability/NN
can/MD
not/RB
be/VB
provided/VBN
by/IN
the/DT
federal/JJ
government/NN
./.
''/''
It/PRP
points/VBZ
to/TO
the/DT
pernicious/JJ
impact/NN
of/IN
local/JJ
government/NN
regulation/NN
,/,
particularly/RB
zoning/NN
and/CC
building/NN
fees/NNS
,/,
which/WDT
pushes/VBZ
the/DT
price/NN
of/IN
housing/NN
out/IN
of/IN
the/DT
reach/NN
of/IN
low-/JJ
and/CC
middle-income/JJ
people/NNS
./.
But/CC
while/IN
the/DT
NAHB/NNP
has/VBZ
suggested/VBN
actions/NNS
that/IN
states/NNS
and/CC
localities/NNS
should/MD
take/VB
to/TO
reduce/VB
regulatory/JJ
barriers/NNS
,/,
the/DT
association/NN
has/VBZ
proposed/VBN
no/DT
activist/JJ
legislative/JJ
program/NN
--/:
comparable/JJ
to/TO
,/,
say/VB
,/,
its/PRP$
detailed/VBN
request/NN
for/IN
more/JJR
federal/JJ
subsidies/NNS
--/:
to/TO
eliminate/VB
counterproductive/JJ
controls/NNS
./.
The/DT
association/NN
,/,
a/DT
majority/NN
of/IN
whose/WP$
156,000/CD
members/NNS
build/VBP
fewer/JJR
than/IN
25/CD
units/NNS
a/DT
year/NN
,/,
is/VBZ
like/IN
many/JJ
other/JJ
business/NN
lobbies/NNS
./.
Explains/VBZ
Sheila/NNP
MacDonald/NNP
of/IN
the/DT
National/NNP
Taxpayers/NNP
Union/NNP
:/:
``/``
It/PRP
treads/VBZ
in/IN
two/CD
worlds/NNS
./.
The/DT
builders/NNS
like/VBP
the/DT
subsidies/NNS
,/,
but/CC
at/IN
the/DT
same/JJ
time/NN
they/PRP
tend/VBP
to/TO
be/VB
fiscal/JJ
conservatives/NNS
in/IN
terms/NNS
of/IN
major/JJ
issues/NNS
,/,
such/JJ
as/IN
the/DT
balanced-budget/JJ
amendment/NN
./.
''/''
Unfortunately/RB
,/,
the/DT
organization/NN
's/POS
desire/NN
for/IN
pork/NN
tends/VBZ
to/TO
override/VB
its/PRP$
commitment/NN
to/TO
overall/JJ
fiscal/JJ
responsibility/NN
./.
Two/CD
years/NNS
ago/RB
when/WRB
the/DT
NAHB/NNP
lobbied/VBD
for/IN
the/DT
$/$
19/CD
billion/CD
omnibus/NN
housing/NN
bill/NN
,/,
the/DT
organization/NN
``/``
basically/RB
dropped/VBD
out/RP
of/IN
the/DT
taxpayers/NNS
'/POS
coalition/NN
,/,
''/''
says/VBZ
Ms./NNP
MacDonald/NNP
./.
As/IN
Mr./NNP
Colton/NNP
of/IN
the/DT
NAHB/NNP
acknowledges/VBZ
:/:
``/``
Government/NNP
is/VBZ
not/RB
going/VBG
to/TO
solve/VB
the/DT
problem/NN
.../:
./.
The/DT
real/JJ
key/NN
is/VBZ
to/TO
have/VB
the/DT
economy/NN
working/VBG
and/CC
interest/NN
rates/NNS
down/RB
./.
''/''
More/JJR
money/NN
for/IN
HUD/NNP
will/MD
increase/VB
the/DT
deficit/NN
and/CC
destabilize/VB
the/DT
economy/NN
;/:
more/JJR
money/NN
to/TO
municipalities/NNS
that/WDT
are/VBP
wrecking/VBG
their/PRP$
local/JJ
housing/NN
markets/NNS
will/MD
further/RBR
insulate/VB
them/PRP
from/IN
the/DT
destructive/JJ
effects/NNS
of/IN
their/PRP$
policies/NNS
./.
Is/VBZ
this/DT
what/WP
the/DT
home/NN
builders/NNS
want/VBP
?/.
Mr./NNP
Bandow/NNP
is/VBZ
a/DT
Cato/NNP
Institute/NNP
fellow/NN
./.
story/NN
:/:
``/``
And/CC
Bills/NNS
to/TO
Make/VB
Wishes/NNS
Come/VB
True/JJ
''/''
--/:
WSJ/NNP
Oct./NNP
17/CD
,/,
1989/CD
./.
)/)
In/IN
an/DT
attempt/NN
to/TO
give/VB
new/JJ
momentum/NN
to/TO
European/NNP
Community/NNP
plans/NNS
for/IN
a/DT
single/JJ
currency/NN
,/,
EC/NNP
government/NN
leaders/NNS
are/VBP
likely/JJ
to/TO
agree/VB
to/TO
set/VB
a/DT
date/NN
for/IN
starting/VBG
formal/JJ
talks/NNS
on/IN
amending/VBG
the/DT
EC/NNP
's/POS
founding/NN
Treaty/NNP
of/IN
Rome/NNP
./.
According/VBG
to/TO
diplomatic/JJ
sources/NNS
in/IN
Brussels/NNP
,/,
most/JJS
EC/NNP
leaders/NNS
agree/VBP
that/IN
talks/NNS
should/MD
begin/VB
in/IN
the/DT
second/JJ
half/NN
of/IN
1990/CD
,/,
and/CC
will/MD
make/VB
a/DT
declaration/NN
on/IN
that/DT
during/IN
a/DT
summit/NN
meeting/NN
in/IN
Strasbourg/NNP
,/,
France/NNP
,/,
on/IN
Dec./NNP
8/CD
and/CC
9/CD
./.
The/DT
only/JJ
strong/JJ
opposition/NN
to/TO
changing/VBG
the/DT
EC/NNP
treaty/NN
comes/VBZ
from/IN
British/NNP
Prime/NNP
Minister/NNP
Margaret/NNP
Thatcher/NNP
,/,
who/WP
is/VBZ
opposed/VBN
to/TO
creating/VBG
a/DT
single/JJ
EC/NNP
currency/NN
./.
But/CC
the/DT
process/NN
of/IN
convening/VBG
the/DT
intergovernmental/JJ
conference/NN
does/VBZ
n't/RB
require/VB
unanimity/NN
./.
Setting/VBG
a/DT
date/NN
to/TO
start/VB
treaty/NN
negotiations/NNS
has/VBZ
no/DT
legal/JJ
significance/NN
in/IN
itself/PRP
,/,
but/CC
could/MD
be/VB
viewed/VBN
as/IN
an/DT
important/JJ
psychological/JJ
push/NN
./.
French/NNP
President/NNP
Francois/NNP
Mitterrand/NNP
fought/VBD
to/TO
set/VB
a/DT
date/NN
for/IN
the/DT
conference/NN
during/IN
the/DT
EC/NNP
summit/NN
in/IN
Madrid/NNP
last/JJ
June/NNP
,/,
but/CC
the/DT
move/NN
was/VBD
scuttled/VBN
because/RB
of/IN
opposition/NN
by/IN
Mrs./NNP
Thatcher/NNP
and/CC
West/NNP
German/NNP
Chancellor/NNP
Helmut/NNP
Kohl/NNP
./.
Diplomatic/JJ
sources/NNS
said/VBD
Mr./NNP
Kohl/NNP
may/MD
now/RB
agree/VB
to/TO
set/VB
a/DT
date/NN
for/IN
the/DT
conference/NN
to/TO
make/VB
it/PRP
clear/JJ
that/IN
West/NNP
Germany/NNP
is/VBZ
still/RB
committed/VBN
to/TO
EC/NNP
unity/NN
./.
The/DT
latest/JJS
crewcut/NN
in/IN
the/DT
equities/NNS
markets/NNS
reminds/VBZ
me/PRP
of/IN
the/DT
joke/NN
T./NNP
Boone/NNP
Pickens/NNP
tells/VBZ
about/IN
the/DT
guy/NN
who/WP
was/VBD
run/VBN
over/RP
by/IN
the/DT
parade/NN
./.
When/WRB
asked/VBD
``/``
What/WP
went/VBD
wrong/JJ
?/.
''/''
the/DT
unfortunate/JJ
victim/NN
replied/VBD
,/,
``/``
It/PRP
was/VBD
a/DT
combination/NN
of/IN
things/NNS
./.
''/''
And/CC
so/IN
it/PRP
was/VBD
on/IN
Gray/NNP
Friday/NNP
./.
The/DT
grand/JJ
marshal/NN
of/IN
this/DT
parade/NN
would/MD
appear/VB
to/TO
have/VB
been/VBN
excess/JJ
leverage/NN
./.
Even/RB
if/IN
that/DT
is/VBZ
so/RB
,/,
however/RB
,/,
it/PRP
's/VBZ
probably/RB
the/DT
case/NN
that/IN
no/DT
barriers/NNS
should/MD
have/VB
been/VBN
erected/VBN
to/TO
stop/VB
the/DT
procession/NN
before/IN
the/DT
end/NN
of/IN
the/DT
rout/NN
e/NN
The/DT
ceremonies/NNS
began/VBD
Friday/NNP
afternoon/NN
when/WRB
word/NN
spread/VBD
that/IN
the/DT
UAL/NNP
buy-out/NN
was/VBD
collapsing/VBG
./.
Although/IN
the/DT
union-bidder/NN
expects/VBZ
to/TO
patch/VB
together/RB
a/DT
substitute/JJ
offer/NN
,/,
consisting/VBG
of/IN
less/JJR
cash/NN
,/,
the/DT
failure/NN
to/TO
get/VB
cash/NN
from/IN
Japanese/JJ
and/CC
American/JJ
banks/NNS
confirmed/VBD
a/DT
growing/VBG
fear/NN
among/IN
arbitragers/NNS
that/IN
the/DT
pageant/NN
of/IN
high-leverage/JJ
takeover/NN
deals/NNS
is/VBZ
ending/VBG
./.
Lots/NNS
of/IN
other/JJ
entries/NNS
made/VBN
up/RP
the/DT
parade/NN
,/,
of/IN
course/NN
--/:
notably/RB
a/DT
surprisingly/RB
large/JJ
increase/NN
in/IN
producer/NN
prices/NNS
,/,
signalling/VBG
Federal/NNP
Reserve/NNP
tightness/NN
;/:
and/CC
the/DT
Bush/NNP
administration/NN
's/POS
defeat/NN
in/IN
trying/VBG
to/TO
lower/VB
the/DT
capital-gains/NNS
tax/NN
./.
As/IN
usual/JJ
,/,
few/JJ
favorable/JJ
reviews/NNS
were/VBD
heard/VBN
for/IN
that/DT
ever-present/JJ
marching/VBG
band/NN
of/IN
program/NN
traders/NNS
,/,
although/IN
most/JJS
serious/JJ
studies/NNS
suggest/VBP
they/PRP
only/RB
play/VB
the/DT
music/NN
that/WDT
others/NNS
write/VBP
./.
What/WP
really/RB
spooked/VBD
the/DT
crowds/NNS
along/IN
Wall/NNP
Street/NNP
,/,
however/RB
,/,
was/VBD
the/DT
sudden/JJ
concern/NN
that/IN
,/,
whatever/WDT
the/DT
reason/NN
,/,
the/DT
pool/NN
of/IN
debt/NN
capital/NN
is/VBZ
drying/VBG
up/RP
./.
Gray/NNP
Friday/NNP
reflects/VBZ
a/DT
panic/NN
mainly/RB
by/IN
the/DT
takeover/NN
arbitragers/NNS
,/,
rather/RB
than/IN
the/DT
small/JJ
investor/NN
,/,
as/RB
their/PRP$
highly/RB
margined/VBN
investments/NNS
in/IN
the/DT
``/``
deal/NN
''/''
stocks/NNS
are/VBP
jeopardized/VBN
by/IN
the/DT
unexpected/JJ
drying/VBG
up/RP
of/IN
the/DT
lubricant/NN
for/IN
deal/NN
financing/NN
./.
Deal/NN
stocks/NNS
led/VBD
the/DT
market/NN
down/RB
as/IN
they/PRP
absorbed/VBD
the/DT
heaviest/JJS
losses/NNS
./.
UAL/NNP
,/,
which/WDT
triggered/VBD
the/DT
slide/NN
,/,
opened/VBD
Monday/NNP
at/IN
$/$
224/CD
,/,
down/RB
about/RB
20/CD
%/NN
from/IN
Thursday/NNP
's/POS
close/NN
./.
AMR/NNP
opened/VBD
Monday/NNP
at/IN
$/$
80/CD
,/,
down/RB
nearly/RB
20/CD
%/NN
from/IN
Thursday/NNP
's/POS
close/NN
./.
Both/DT
took/VBD
further/JJ
hits/NNS
yesterday/NN
./.
Hilton/NNP
lost/VBD
20/CD
%/NN
on/IN
Friday/NNP
;/:
Paramount/NNP
lost/VBD
almost/RB
11/CD
%/NN
./.
A/DT
careful/JJ
look/NN
reveals/VBZ
that/IN
where/WRB
deal/NN
financing/NN
has/VBZ
been/VBN
secured/VBN
,/,
the/DT
target/NN
's/POS
stock/NN
price/NN
was/VBD
not/RB
affected/VBN
on/IN
Friday/NNP
./.
The/DT
multibillion-dollar/JJ
prospects/NNS
,/,
where/WRB
the/DT
bidder/NN
must/MD
line/VB
up/RP
a/DT
consortium/NN
of/IN
banks/NNS
and\/or/CC
issue/NN
billions/NNS
in/IN
high-yield/JJ
debt/NN
,/,
were/VBD
where/WRB
the/DT
damage/NN
was/VBD
concentrated/VBN
./.
The/DT
market/NN
for/IN
so-called/JJ
junk/NN
bonds/NNS
has/VBZ
been/VBN
setting/VBG
the/DT
stage/NN
for/IN
Friday/NNP
's/POS
dramatic/JJ
march/NN
for/IN
several/JJ
weeks/NNS
./.
The/DT
growing/VBG
financial/JJ
difficulties/NNS
of/IN
recent/JJ
high-leverage/JJ
restructurings/NNS
or/CC
takeovers/NNS
,/,
such/JJ
as/IN
Resorts/NNP
International/NNP
,/,
Integrated/NNP
Resources/NNP
,/,
and/CC
Campeau/NNP
's/POS
retailing/NN
empire/NN
,/,
have/VBP
cast/VBN
a/DT
pall/NN
over/IN
the/DT
entire/JJ
market/NN
for/IN
high-yield/JJ
securities/NNS
./.
Investors/NNS
have/VBP
reacted/VBN
by/IN
ignoring/VBG
recent/JJ
efforts/NNS
to/TO
float/VB
junk/NN
bonds/NNS
by/IN
Ohio/NNP
Mattress/NNP
and/CC
by/IN
forcing/VBG
Ramada/NNP
to/TO
postpone/VB
indefinitely/RB
its/PRP$
planned/VBN
junk-bond/NN
sale/NN
and/CC
restructuring/NN
./.
As/IN
a/DT
result/NN
,/,
high-yield/JJ
mutual/JJ
funds/NNS
have/VBP
declined/VBN
across/IN
the/DT
board/NN
and/CC
the/DT
many/JJ
firms/NNS
planning/VBG
to/TO
sell/VB
$/$
11/CD
billion/CD
in/IN
junk/NN
bonds/NNS
before/IN
year-end/NN
are/VBP
experiencing/VBG
anxious/JJ
times/NNS
./.
These/DT
are/VBP
all/DT
market/NN
excesses/NNS
the/DT
artificial/JJ
boosts/NNS
that/IN
the/DT
tax/NN
code/NN
gives/VBZ
to/TO
debt/NN
over/IN
equity/NN
what/WP
we/PRP
've/VBP
seen/VBN
is/VBZ
the/DT
market/NN
reining/VBG
them/PRP
in/RP
./.
Of/IN
course/NN
,/,
Washington/NNP
had/VBD
n't/RB
been/VBN
silent/JJ
in/IN
the/DT
days/NNS
leading/VBG
up/IN
to/TO
the/DT
debacle/NN
,/,
and/CC
its/PRP$
tendency/NN
to/TO
meddle/VB
in/IN
the/DT
leverage/NN
equation/NN
remains/VBZ
a/DT
troublesome/JJ
prospect/NN
,/,
but/CC
those/DT
preliminary/JJ
steps/NNS
should/MD
n't/RB
distract/VB
us/PRP
from/IN
the/DT
basic/JJ
market/NN
fundamentalism/NN
that/WDT
was/VBD
at/IN
work/NN
on/IN
Friday/NNP
./.
If/IN
it/PRP
is/VBZ
correct/JJ
to/TO
find/VB
that/IN
concerns/NNS
over/IN
corporate/JJ
debt/NN
and/CC
LBOs/NNS
caused/VBD
Gray/NNP
Friday/NNP
,/,
what/WP
are/VBP
the/DT
implications/NNS
for/IN
policy/NN
makers/NNS
?/.
After/IN
all/DT
,/,
the/DT
stock/NN
market/NN
's/POS
response/NN
to/TO
the/DT
collapse/NN
of/IN
the/DT
UAL/NNP
deal/NN
might/MD
be/VB
taken/VBN
to/TO
confirm/VB
the/DT
anti-debt/JJ
direction/NN
of/IN
regulators/NNS
./.
Is/VBZ
this/DT
a/DT
case/NN
where/WRB
private/JJ
markets/NNS
are/VBP
approving/VBG
of/IN
Washington/NNP
's/POS
bashing/NN
of/IN
Wall/NNP
Street/NNP
?/.
Absolutely/RB
not/RB
./.
To/TO
the/DT
extent/NN
that/IN
Friday/NNP
's/POS
sell-off/NN
reflected/VBD
a/DT
sudden/JJ
reappraisal/NN
of/IN
the/DT
excesses/NNS
of/IN
leverage/NN
,/,
the/DT
message/NN
is/VBZ
that/DT
Wall/NNP
Street/NNP
and/CC
the/DT
private/JJ
markets/NNS
are/VBP
fully/RB
capable/JJ
of/IN
imposing/VBG
the/DT
appropriate/JJ
incentives/NNS
and/CC
sanctions/NNS
on/IN
corporate/JJ
behavior/NN
./.
The/DT
national/JJ
economic/JJ
interests/NNS
are/VBP
much/RB
better/RB
served/VBN
allowing/VBG
the/DT
private/JJ
interests/NNS
of/IN
bankers/NNS
and/CC
investors/NNS
be/VB
the/DT
ultimate/JJ
judges/NNS
of/IN
the/DT
investment/NN
quality/NN
of/IN
various/JJ
LBO/NNP
deals/NNS
and/CC
leveraged/VBN
restructurings/NNS
./.
The/DT
recent/JJ
difficulties/NNS
in/IN
the/DT
junk-bond/NN
markets/NNS
and/CC
the/DT
scarcity/NN
of/IN
bank/NN
capital/NN
for/IN
recent/JJ
deals/NNS
underscores/VBZ
the/DT
wisdom/NN
of/IN
letting/VBG
the/DT
free/JJ
markets/NNS
operate/VB
./.
If/IN
takeover/NN
premiums/NNS
become/VBP
excessive/JJ
,/,
if/IN
LBO/NNP
dealmakers/NNS
become/VBP
too/RB
aggressive/JJ
,/,
then/RB
the/DT
private/JJ
market/NN
will/MD
recognize/VB
these/DT
problems/NNS
more/RBR
quickly/RB
and/CC
accurately/RB
than/IN
will/MD
policy/NN
makers/NNS
,/,
and/CC
the/DT
markets/NNS
will/MD
move/VB
with/IN
lightning/NN
speed/NN
to/TO
impose/VB
appropriate/JJ
sanctions/NNS
./.
Yes/UH
,/,
the/DT
broader/JJR
exchanges/NNS
got/VBD
caught/VBN
up/RP
in/IN
the/DT
spiral/NN
,/,
but/CC
they/PRP
rode/VBD
the/DT
tiger/NN
up/RB
all/DT
year/NN
./.
Not/RB
surprisingly/RB
,/,
he/PRP
sometimes/RB
bites/VBZ
./.
The/DT
arbitragers/NNS
and/CC
takeover/NN
initiatiors/NNS
got/VBD
killed/VBN
on/IN
Gray/NNP
Friday/NNP
,/,
while/IN
the/DT
besieged/VBN
managers/NNS
of/IN
prospective/JJ
targets/NNS
cheered/VBD
lustily/RB
./.
If/IN
you/PRP
identify/VBP
with/IN
the/DT
besieged/JJ
managers/NNS
,/,
you/PRP
must/MD
concede/VB
that/IN
speedy/JJ
and/CC
effective/JJ
relief/NN
from/IN
the/DT
excesses/NNS
of/IN
the/DT
takeover/NN
market/NN
is/VBZ
more/RBR
likely/JJ
to/TO
come/VB
from/IN
the/DT
marketplace/NN
than/IN
from/IN
Washington/NNP
./.
If/IN
you/PRP
side/VBP
with/IN
the/DT
arbitragers/NNS
and/CC
raiders/NNS
,/,
you/PRP
clearly/RB
have/VBP
more/JJR
to/TO
fear/VB
from/IN
private/JJ
investors/NNS
than/IN
from/IN
regulators/NNS
,/,
although/IN
the/DT
Delaware/NNP
courts/NNS
should/MD
never/RB
be/VB
underestimated/VBN
./.
The/DT
truth/NN
is/VBZ
,/,
Washington/NNP
understands/VBZ
politics/NNS
better/JJR
than/IN
economics/NNS
./.
Although/IN
the/DT
average/JJ
citizen/NN
is/VBZ
probably/RB
not/RB
harmed/VBN
too/RB
much/RB
from/IN
Washington/NNP
's/POS
rhetorical/JJ
war/NN
against/IN
Wall/NNP
Street/NNP
regarding/VBG
excessive/JJ
financial/JJ
leveraging/VBG
,/,
actual/JJ
legislation/NN
would/MD
probably/RB
impose/VB
considerable/JJ
harm/NN
./.
Any/DT
such/JJ
attempt/NN
to/TO
distinguish/VB
``/``
good/JJ
debt/NN
''/''
from/IN
``/``
bad/JJ
debt/NN
,/,
''/''
or/CC
to/TO
draw/VB
the/DT
line/NN
at/IN
a/DT
particular/JJ
industry/NN
,/,
such/JJ
as/IN
the/DT
airlines/NNS
,/,
is/VBZ
likely/JJ
to/TO
blunt/VB
the/DT
spur/NN
that/IN
the/DT
proper/JJ
amount/NN
of/IN
leverage/NN
provides/VBZ
both/DT
to/TO
equity/NN
markets/NNS
and/CC
economic/JJ
efficiency/NN
in/IN
general/NN
./.
Far/RB
better/RBR
for/IN
policy/NN
makers/NNS
to/TO
concentrate/VB
on/IN
the/DT
war/NN
against/IN
drugs/NNS
,/,
Panama/NNP
and/CC
the/DT
deficit/NN
,/,
all/DT
of/IN
them/DT
parades/NNS
that/WDT
seem/VBP
never/RB
to/TO
end/VB
./.
Mr./NNP
Jarrell/NNP
,/,
former/JJ
top/JJ
economist/NN
at/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
,/,
teaches/VBZ
at/IN
the/DT
University/NNP
of/IN
Rochester/NNP
's/POS
Simon/NNP
Business/NNP
School/NNP
./.
Tokyo/NNP
share/NN
prices/NNS
rebounded/VBD
Tuesday/NNP
morning/NN
,/,
with/IN
the/DT
Nikkei/NNP
index/NN
of/IN
225/CD
selected/VBN
stocks/NNS
rising/VBG
618.69/CD
points/NNS
to/TO
close/VB
the/DT
morning/NN
session/NN
at/IN
35087.38/CD
./.
The/DT
index/NN
slid/VBD
647.33/CD
points/NNS
,/,
or/CC
1.8/CD
%/NN
,/,
on/IN
Monday/NNP
./.
In/IN
the/DT
first/JJ
25/CD
minutes/NNS
of/IN
Tuesday/NNP
's/POS
trading/NN
the/DT
Nikkei/NNP
index/NN
soared/VBD
664.83/CD
points/NNS
,/,
to/TO
35133.83/CD
./.
By/IN
10/CD
a.m./RB
Tokyo/NNP
time/NN
,/,
the/DT
index/NN
was/VBD
up/RB
435.11/CD
points/NNS
,/,
to/TO
34903.80/CD
as/IN
investors/NNS
hailed/VBD
New/NNP
York/NNP
's/POS
overnight/JJ
rally/NN
./.
Monday/NNP
's/POS
slide/NN
came/VBD
in/IN
a/DT
relatively/RB
calm/JJ
session/NN
that/WDT
did/VBD
n't/RB
provide/VB
much/JJ
direction/NN
for/IN
other/JJ
markets/NNS
./.
Shares/NNS
also/RB
closed/VBN
sharply/RB
lower/RBR
across/IN
Europe/NNP
,/,
particularly/RB
in/IN
Frankfurt/NNP
,/,
although/IN
London/NNP
and/CC
a/DT
few/JJ
other/JJ
markets/NNS
recovered/VBD
some/DT
ground/NN
after/IN
stocks/NNS
began/VBD
to/TO
rebound/VB
in/IN
New/NNP
York/NNP
./.
Other/JJ
Asian/JJ
and/CC
Pacific/JJ
markets/NNS
had/VBD
sharper/JJR
losses/NNS
than/IN
Tokyo/NNP
,/,
but/CC
the/DT
selling/NN
wave/NN
stopped/VBD
short/RB
of/IN
precipitating/VBG
another/DT
market/NN
crash/NN
./.
All/DT
eyes/NNS
were/VBD
on/IN
Tokyo/NNP
at/IN
the/DT
opening/NN
because/IN
it/PRP
was/VBD
the/DT
first/JJ
major/JJ
market/NN
to/TO
trade/VB
since/IN
Friday/NNP
's/POS
190.58-point/JJ
plunge/NN
on/IN
Wall/NNP
Street/NNP
./.
But/CC
rather/RB
than/IN
set/VB
the/DT
tone/NN
for/IN
other/JJ
markets/NNS
,/,
Japan/NNP
's/POS
major/JJ
institutional/JJ
investors/NNS
chose/VBD
to/TO
remain/VB
on/IN
the/DT
sidelines/NNS
./.
Still/RB
,/,
despite/IN
the/DT
sudden/JJ
reappearance/NN
of/IN
stock-market/JJ
turbulence/NN
,/,
managers/NNS
of/IN
Japanese/JJ
investment/NN
funds/NNS
said/VBD
they/PRP
were/VBD
n't/RB
planning/VBG
to/TO
unload/VB
U.S./NNP
or/CC
European/JJ
equities/NNS
./.
``/``
We/PRP
did/VBD
n't/RB
trade/VB
much/JJ
today/NN
,/,
as/IN
our/PRP$
policy/NN
now/RB
is/VBZ
to/TO
wait/VB
and/CC
see/VB
,/,
''/''
said/VBD
a/DT
fund/NN
manager/NN
at/IN
Taisho/NNP
Life/NNP
Insurance/NNP
Co/NNP
./.
``/``
We/PRP
would/MD
like/VB
to/TO
wait/VB
and/CC
see/VB
until/IN
trading/NN
goes/VBZ
around/IN
through/IN
Europe/NNP
and/CC
New/NNP
York/NNP
./.
''/''
The/DT
institutions/NNS
appeared/VBD
confident/JJ
that/IN
Japanese/JJ
regulators/NNS
would/MD
step/VB
in/RB
to/TO
ensure/VB
orderly/JJ
trading/NN
if/IN
necessary/JJ
,/,
and/CC
there/EX
was/VBD
considerable/JJ
speculation/NN
during/IN
the/DT
day/NN
that/IN
the/DT
Finance/NNP
Ministry/NNP
was/VBD
working/VBG
behind/IN
the/DT
scenes/NNS
to/TO
do/VB
just/RB
that/DT
./.
But/CC
in/IN
the/DT
absence/NN
of/IN
panicky/JJ
trading/NN
,/,
its/PRP$
presence/NN
was/VBD
never/RB
overtly/RB
felt/VBN
./.
At/IN
the/DT
close/NN
,/,
the/DT
Nikkei/NNP
average/NN
of/IN
225/CD
stocks/NNS
stood/VBD
at/IN
34468.69/CD
,/,
down/RB
647.33/CD
points/NNS
,/,
or/CC
1.8/CD
%/NN
./.
The/DT
broader/JJR
Tokyo/NNP
Stock/NNP
Price/NNP
Index/NNP
sank/VBD
45.66/CD
,/,
or/CC
1.7/CD
%/NN
,/,
to/TO
2600.88/CD
./.
The/DT
day/NN
's/POS
decline/NN
was/VBD
generally/RB
in/IN
line/NN
with/IN
analysts/NNS
'/POS
weekend/NN
predictions/NNS
./.
Declining/VBG
issues/NNS
swamped/VBD
advancers/NNS
,/,
941-105/CD
./.
But/CC
volume/NN
was/VBD
thin/JJ
at/IN
526.2/CD
million/CD
shares/NNS
,/,
compared/VBN
with/IN
574.7/CD
million/CD
Friday/NNP
./.
The/DT
market/NN
opened/VBD
sharply/RB
lower/RBR
,/,
with/IN
the/DT
Nikkei/NNP
average/NN
down/RB
nearly/RB
600/CD
after/IN
20/CD
minutes/NNS
./.
A/DT
midmorning/NN
rebound/NN
brought/VBD
it/PRP
back/RB
to/TO
show/VB
a/DT
gain/NN
of/IN
about/RB
200/CD
at/IN
the/DT
end/NN
of/IN
the/DT
morning/NN
session/NN
,/,
but/CC
the/DT
rally/NN
failed/VBD
in/IN
the/DT
afternoon/NN
,/,
and/CC
the/DT
market/NN
closed/VBD
near/IN
the/DT
day/NN
's/POS
low/NN
./.
The/DT
smaller/JJR
stocks/NNS
in/IN
the/DT
Tokyo/NNP
market/NN
's/POS
second/JJ
section/NN
also/RB
posted/VBD
their/PRP$
biggest/JJS
decline/NN
of/IN
the/DT
year/NN
./.
The/DT
Tokyo/NNP
Stock/NNP
Exchange/NNP
index/NN
for/IN
the/DT
second/JJ
section/NN
fell/VBD
100.96/CD
,/,
or/CC
2.7/CD
%/NN
,/,
to/TO
3655.40/CD
./.
Many/JJ
investors/NNS
,/,
trying/VBG
to/TO
outperform/VB
the/DT
market/NN
's/POS
major/JJ
indexes/NNS
,/,
have/VBP
flocked/VBN
to/TO
these/DT
small/JJ
issues/NNS
in/IN
recent/JJ
weeks/NNS
./.
Japanese/JJ
investors/NNS
and/CC
traders/NNS
expressed/VBD
relief/NN
that/IN
the/DT
Tokyo/NNP
market/NN
did/VBD
n't/RB
fall/VB
more/RBR
sharply/RB
./.
But/CC
its/PRP$
performance/NN
did/VBD
bear/VB
some/DT
resemblance/NN
to/TO
events/NNS
of/IN
two/CD
years/NNS
ago/RB
,/,
during/IN
the/DT
October/NNP
1987/CD
global/JJ
stock/NN
market/NN
crash/NN
./.
On/IN
Oct./NNP
16/CD
,/,
1987/CD
--/:
the/DT
Friday/NNP
before/IN
the/DT
Black/NNP
Monday/NNP
crash/NN
--/:
the/DT
New/NNP
York/NNP
market/NN
dropped/VBD
4.6/CD
%/NN
,/,
and/CC
Tokyo/NNP
followed/VBD
on/IN
Monday/NNP
with/IN
a/DT
2.4/CD
%/NN
drop/NN
./.
This/DT
time/NN
,/,
Wall/NNP
Street/NNP
's/POS
plunge/NN
of/IN
6.9/CD
%/NN
Friday/NNP
was/VBD
followed/VBN
by/IN
yesterday/NN
's/POS
1.8/CD
%/NN
loss/NN
in/IN
Tokyo/NNP
./.
Two/CD
years/NNS
ago/RB
,/,
Tokyo/NNP
's/POS
biggest/JJS
fall/NN
came/VBD
the/DT
day/NN
after/IN
New/NNP
York/NNP
's/POS
22.6/CD
%/NN
Black/NNP
Monday/NNP
plunge/NN
,/,
when/WRB
the/DT
Nikkei/NNP
average/NN
fell/VBD
14.9/CD
%/NN
./.
Thus/RB
,/,
market/NN
participants/NNS
yesterday/NN
were/VBD
looking/VBG
ahead/RB
nervously/RB
to/TO
Wall/NNP
Street/NNP
's/POS
opening/NN
./.
But/CC
in/IN
New/NNP
York/NNP
yesterday/NN
,/,
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
surged/VBD
88.12/CD
to/TO
close/VB
at/IN
2657.38/CD
on/IN
heavy/JJ
volume/NN
of/IN
416,290,000/CD
shares/NNS
,/,
although/IN
declining/VBG
issues/NNS
still/RB
outnumbered/VBD
advancing/VBG
ones/NNS
on/IN
the/DT
broad/JJ
market/NN
./.
Nobuto/NNP
Yasuda/NNP
,/,
a/DT
director/NN
at/IN
Yamaichi/NNP
Investment/NNP
Trust/NNP
&/CC
Management/NNP
Co./NNP
,/,
called/VBD
yesterday/NN
's/POS
session/NN
``/``
a/DT
good/JJ
scenario/NN
''/''
for/IN
Japan/NNP
./.
``/``
Now/RB
we/PRP
are/VBP
looking/VBG
for/IN
the/DT
time/NN
to/TO
place/VB
buy/NN
orders/NNS
,/,
''/''
he/PRP
said/VBD
./.
``/``
For/IN
us/PRP
institutional/JJ
investors/NNS
,/,
the/DT
chance/NN
for/IN
buying/VBG
has/VBZ
come/VBN
./.
''/''
Isao/NNP
Ushikubo/NNP
,/,
general/JJ
manager/NN
of/IN
the/DT
investment/NN
research/NN
department/NN
at/IN
Toyo/NNP
Trust/NNP
&/CC
Banking/NNP
Co./NNP
,/,
also/RB
was/VBD
optimistic/JJ
./.
He/PRP
described/VBD
Friday/NNP
's/POS
plunge/NN
in/IN
the/DT
U.S./NNP
as/IN
a/DT
``/``
fleeting/JJ
''/''
event/NN
resulting/VBG
in/IN
part/NN
from/IN
excessive/JJ
merger/NN
and/CC
acquisition/NN
activity/NN
./.
``/``
Unless/IN
there/EX
is/VBZ
a/DT
panic/NN
,/,
this/DT
is/VBZ
the/DT
best/JJS
time/NN
to/TO
buy/VB
,/,
as/IN
was/VBD
the/DT
case/NN
two/CD
years/NNS
ago/RB
,/,
''/''
he/PRP
said/VBD
./.
``/``
Those/DT
shares/NNS
which/WDT
had/VBD
posted/VBN
gains/NNS
on/IN
M&A/NNP
speculation/NN
were/VBD
dashed/VBN
with/IN
cold/JJ
water/NN
,/,
but/CC
as/RB
far/RB
as/IN
major/JJ
stocks/NNS
are/VBP
concerned/VBN
,/,
there/EX
is/VBZ
n't/RB
much/JJ
impact/NN
./.
''/''
Other/JJ
fund/NN
managers/NNS
were/VBD
similarly/RB
sanguine/JJ
./.
``/``
We/PRP
have/VBP
no/DT
plans/NNS
to/TO
adjust/VB
our/PRP$
asset/NN
allocation/NN
in/IN
foreign/JJ
equities/NNS
,/,
''/''
said/VBD
Masato/NNP
Murakami/NNP
,/,
chief/JJ
portfolio/NN
manager/NN
in/IN
the/DT
pension/NN
fund/NN
management/NN
department/NN
at/IN
Yasuda/NNP
Trust/NNP
&/CC
Banking/NNP
Co/NNP
./.
He/PRP
said/VBD
Friday/NNP
's/POS
Wall/NNP
Street/NNP
decline/NN
was/VBD
``/``
well/RB
within/IN
the/DT
range/NN
of/IN
volatility/NN
''/''
that/IN
Yasuda/NNP
Trust/NNP
plans/VBZ
for/IN
when/WRB
it/PRP
charts/VBZ
its/PRP$
overseas/JJ
investment/NN
strategy/NN
./.
Among/IN
other/JJ
Asian/JJ
and/CC
Pacific/JJ
markets/NNS
,/,
Malaysia/NNP
and/CC
Singapore/NNP
had/VBD
the/DT
biggest/JJS
losses/NNS
,/,
with/IN
the/DT
Kuala/NNP
Lumpur/NNP
composite/JJ
index/NN
in/IN
Malaysia/NNP
falling/VBG
11.5/CD
%/NN
and/CC
Singapore/NNP
's/POS
Straits/NNP
Times/NNP
Industrial/NNP
Index/NNP
down/RB
10/CD
%/NN
./.
Major/JJ
indexes/NNS
declined/VBD
more/JJR
than/IN
8/CD
%/NN
in/IN
Australia/NNP
and/CC
New/NNP
Zealand/NNP
and/CC
6.5/CD
%/NN
in/IN
Hong/NNP
Kong/NNP
./.
Bangkok/NNP
,/,
Manila/NNP
,/,
Seoul/NNP
,/,
Taipei/NNP
and/CC
Jakarta/NNP
escaped/VBD
with/IN
slightly/RB
smaller/JJR
losses/NNS
./.
Brokers/NNS
and/CC
fund/NN
managers/NNS
said/VBD
the/DT
region/NN
's/POS
markets/NNS
were/VBD
reacting/VBG
to/TO
Friday/NNP
's/POS
Wall/NNP
Street/NNP
plunge/NN
even/RB
though/IN
that/DT
decline/NN
was/VBD
due/JJ
to/TO
local/JJ
factors/NNS
such/JJ
as/IN
failed/VBN
corporate/JJ
buy-outs/NNS
and/CC
a/DT
deteriorating/VBG
junk-bond/NN
market/NN
./.
``/``
It/PRP
's/VBZ
pure/JJ
psychology/NN
,/,
''/''
said/VBD
William/NNP
Au/NNP
Yeung/NNP
,/,
an/DT
account/NN
executive/NN
for/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
HK/NNP
Ltd./NNP
in/IN
Hong/NNP
Kong/NNP
./.
``/``
Markets/NNS
in/IN
this/DT
region/NN
are/VBP
n't/RB
so/RB
geared/VBN
to/TO
leveraged/VBN
buy-outs/NNS
,/,
and/CC
their/PRP$
economies/NNS
generally/RB
are/VBP
in/IN
good/JJ
shape/NN
,/,
but/CC
there/EX
's/VBZ
no/DT
doubt/NN
that/DT
Asia/NNP
is/VBZ
still/RB
following/VBG
America/NNP
's/POS
lead/NN
./.
''/''
Several/JJ
analysts/NNS
said/VBD
Malaysia/NNP
and/CC
Singapore/NNP
had/VBD
the/DT
biggest/JJS
losses/NNS
because/IN
they/PRP
are/VBP
relatively/RB
open/JJ
to/TO
rapid/JJ
cash/NN
flows/NNS
./.
Hong/NNP
Kong/NNP
is/VBZ
the/DT
region/NN
's/POS
next/JJ
most/RBS
open/JJ
market/NN
,/,
but/CC
many/JJ
foreign/JJ
investors/NNS
have/VBP
been/VBN
staying/VBG
away/RB
from/IN
it/PRP
since/IN
it/PRP
plunged/VBD
in/IN
June/NNP
amid/IN
political/JJ
turmoil/NN
in/IN
China/NNP
./.
``/``
Singapore/NNP
took/VBD
the/DT
hit/NN
because/RB
when/WRB
people/NNS
want/VBP
to/TO
get/VB
out/RB
,/,
they/PRP
tend/VBP
to/TO
go/VB
where/WRB
the/DT
liquidity/NN
is/VBZ
,/,
''/''
said/VBD
Elizabeth/NNP
Hambrecht/NNP
,/,
a/DT
regional/JJ
analyst/NN
with/IN
Baring/NNP
Securities/NNP
Hong/NNP
Kong/NNP
Ltd/NNP
./.
She/PRP
pointed/VBD
out/RP
that/IN
even/RB
after/IN
Monday/NNP
's/POS
10/CD
%/NN
decline/NN
,/,
the/DT
Straits/NNP
Times/NNP
index/NN
is/VBZ
up/RB
24/CD

%/NN
this/DT
year/NN
,/,
so/IN
investors/NNS
who/WP
bailed/VBD
out/RP
generally/RB
did/VBD
so/RB
profitably/RB
./.
Similarly/RB
,/,
Kuala/NNP
Lumpur/NNP
's/POS
composite/JJ
index/NN
yesterday/NN
ended/VBD
27.5/CD
%/NN
above/IN
its/PRP$
1988/CD
close/NN
./.
In/IN
Hong/NNP
Kong/NNP
,/,
the/DT
Hang/NNP
Seng/NNP
Index/NNP
fell/VBD
180.60/CD
to/TO
finish/VB
at/IN
2601.70/CD
./.
Trading/NN
was/VBD
heavy/JJ
at/IN
about/RB
one/CD
billion/CD
shares/NNS
,/,
compared/VBN
with/IN
473.9/CD
million/CD
Friday/NNP
./.
But/CC
the/DT
session/NN
was/VBD
orderly/JJ
,/,
in/IN
contrast/NN
to/TO
the/DT
market/NN
's/POS
four-day/JJ
closure/NN
after/IN
the/DT
1987/CD
crash/NN
./.
Richard/NNP
Chenevix-Trench/NNP
,/,
a/DT
director/NN
at/IN
Hong/NNP
Kong-based/JJ
Baring/NNP
International/NNP
Fund/NNP
Managers/NNP
Ltd./NNP
,/,
said/VBD
the/DT
market/NN
probably/RB
has/VBZ
n't/RB
hit/VBD
bottom/NN
yet/RB
but/CC
is/VBZ
close/JJ
./.
``/``
If/IN
New/NNP
York/NNP
does/VBZ
n't/RB
collapse/VB
,/,
I/PRP
see/VBP
maybe/RB
another/DT
5/CD
%/NN
on/IN
the/DT
downside/NN
,/,
not/RB
counting/VBG
the/DT
risk/NN
of/IN
bad/JJ
news/NN
out/IN
of/IN
China/NNP
,/,
''/''
he/PRP
said/VBD
./.
In/IN
Australia/NNP
,/,
Sydney/NNP
's/POS
All/DT
Ordinaries/NNP
index/NN
closed/VBD
at/IN
1601.5/CD
,/,
down/RB
8.1/CD
%/NN
,/,
its/PRP$
biggest/JJS
drop/NN
since/IN
October/NNP
1987/CD
./.
But/CC
volume/NN
rose/VBD
only/RB
to/TO
162/CD
million/CD
shares/NNS
from/IN
143/CD
million/CD
Friday/NNP
./.
Nestor/NNP
Hinzack/NNP
,/,
an/DT
analyst/NN
at/IN
brokerage/NN
firm/NN
Burdett/NNP
,/,
Buckeridge/NNP
&/CC
Young/NNP
Ltd./NNP
,/,
described/VBD
the/DT
market/NN
's/POS
performance/NN
as/IN
``/``
sheep-like/JJ
''/''
as/IN
investors/NNS
fled/VBD
to/TO
bluechip/JJ
Australian/JJ
stocks/NNS
and/CC
shunned/VBD
entrepreneurial/JJ
companies/NNS
they/PRP
perceived/VBD
as/IN
having/VBG
any/DT
takeover/NN
premium/NN
built/VBN
into/IN
the/DT
price/NN
./.
London/NNP
's/POS
Financial/NNP
Times-Stock/NNP

Exchange/NNP
100-share/JJ
index/NN
,/,
the/DT
most/RBS
closely/RB
watched/VBN
market/NN
barometer/NN
,/,
ended/VBD
at/IN
its/PRP$
intraday/JJ
high/NN
of/IN
2163.4/CD
,/,
down/RB
70.5/CD
,/,
or/CC
3.2/CD
%/NN
./.
At/IN
its/PRP$
low/JJ
,/,
shortly/RB
before/IN
Wall/NNP
Street/NNP
opened/VBD
,/,
it/PRP
was/VBD
off/JJ
more/RBR
than/IN
130/CD
points/NNS
./.
The/DT
Financial/NNP
Times/NNP
30-share/JJ
index/NN
closed/VBD
79.3/CD
points/NNS
lower/RBR
at/IN
1738.7/CD
./.
Volume/NN
more/RBR
than/IN
doubled/VBD
to/TO
959.3/CD
million/CD
shares/NNS
from/IN
457.7/CD
million/CD
Friday/NNP
./.
Prices/NNS
on/IN
the/DT
Frankfurt/NNP
Stock/NNP
Exchange/NNP
tumbled/VBD
in/IN
heavy/JJ
trading/NN
./.
The/DT
decline/NN
in/IN
the/DT
German/JJ
Stock/NNP
Index/NNP
of/IN
203.56/CD
points/NNS
,/,
or/CC
12.8/CD
%/NN
,/,
to/TO
1385.72/CD
was/VBD
the/DT
Frankfurt/NNP
market/NN
's/POS
steepest/JJS
fall/NN
ever/RB
./.
Retail/JJ
investors/NNS
dumped/VBD
holdings/NNS
on/IN
a/DT
massive/JJ
scale/NN
,/,
pushing/VBG
some/DT
blue-chip/JJ
shares/NNS
down/RB
as/RB
much/JJ
as/IN
20/CD
%/NN
./.
Analysts/NNS
cited/VBD
memories/NNS
of/IN
two/CD
years/NNS
ago/RB
,/,
when/WRB
many/JJ
small/JJ
investors/NNS
held/VBD
on/IN
to/TO
their/PRP$
shares/NNS
after/IN
the/DT
October/NNP
crash/NN
but/CC
the/DT
West/JJ
German/JJ
market/NN
continued/VBD
to/TO
decline/VB
steeply/RB
for/IN
the/DT
next/JJ
three/CD
months/NNS
./.
Here/RB
are/VBP
price/NN
trends/NNS
on/IN
the/DT
world/NN
's/POS
major/JJ
stock/NN
markets/NNS
,/,
as/IN
calculated/VBN
by/IN
Morgan/NNP
Stanley/NNP
Capital/NNP
International/NNP
Perspective/NNP
,/,
Geneva/NNP
./.
To/TO
make/VB
them/PRP
directly/RB
comparable/JJ
,/,
each/DT
index/NN
is/VBZ
based/VBN
on/IN
the/DT
close/NN
of/IN
1969/CD
equaling/VBG
100/CD
./.
The/DT
percentage/NN
change/NN
is/VBZ
since/IN
year-end/NN
./.
Last/JJ
week/NN
's/VBZ
best/JJS
and/CC
worst/JJS
performing/VBG
stocks/NNS
among/IN
those/DT
issues/NNS
that/WDT
make/VBP
up/RP
80/CD
%/NN
of/IN
the/DT
world/NN
's/POS
stock/NN
market/NN
capitalization/NN
local/JJ
currency/NN
)/)
Frank/NNP
Lloyd/NNP
Wright/NNP
is/VBZ
reported/VBN
to/TO
have/VB
said/VBD
once/RB
that/IN
if/IN
you/PRP
tipped/VBD
the/DT
world/NN
on/IN
its/PRP$
side/NN
,/,
everything/NN
loose/JJ
would/MD
end/VB
up/RP
in/IN
California/NNP
./.
We/PRP
've/VBP
always/RB
thought/VBN
that/IN
Mr./NNP
Wright/NNP
underestimated/VBD
California/NNP
's/POS
vitality/NN
,/,
but/CC
maybe/RB
the/DT
state/NN
's/POS
la-la/JJ
factions/NNS
are/VBP
starting/VBG
to/TO
overwhelm/VB
the/DT
forces/NNS
that/WDT
made/VBD
it/PRP
such/JJ
a/DT
significant/JJ
place/NN
./.
What/WP
else/RB
is/VBZ
one/PRP
to/TO
make/VB
of/IN
the/DT
whacky/JJ
save-the-earth/JJ
initiative/NN
just/RB
proposed/VBN
by/IN
several/JJ
major/JJ
environmental/JJ
groups/NNS
and/CC
organized/VBN
by/IN
the/DT
state/NN
's/POS
attorney/NN
general/NN
?/.
If/IN
passed/VBN
by/IN
the/DT
voters/NNS
,/,
the/DT
recently/RB
announced/VBN
initiative/NN
would/MD
phase/VB
out/RP
major/JJ
pesticides/NNS
,/,
reduce/VB
carbon/NN
dioxide/NN
emissions/NNS
by/IN
40/CD
%/NN
,/,
ban/VB
new/JJ
offshore/JJ
drilling/NN
,/,
ban/VB
chemicals/NNS
thought/VBN
to/TO
deplete/VB
the/DT
ozone/NN
layer/NN
,/,
and/CC
create/VB
a/DT
new/JJ
state/NN
environmental/JJ
officer/NN
armed/VBN
with/IN
a/DT
$/$
40/CD
million/CD
budget/NN
to/TO
sue/VB
any/DT
firm/NN
or/CC
agency/NN
he/PRP
thinks/VBZ
is/VBZ
being/VBG
too/RB
dirty/JJ
./.
The/DT
initiative/NN
is/VBZ
based/VBN
largely/RB
on/IN
the/DT
wish-lists/NNS
of/IN
the/DT
green/JJ
lobby/NN
:/:
the/DT
Sierra/NNP
Club/NNP
,/,
the/DT
League/NNP
of/IN
Conservation/NNP
Voters/NNP
,/,
the/DT
Natural/NNP
Resources/NNP
Defense/NNP
Council/NNP
,/,
the/DT
National/NNP
Toxics/NNP
Campaign/NNP
and/CC
the/DT
Citizens/NNP
for/IN
a/DT
Better/NNP
Environment/NNP
./.
Interestingly/RB
,/,
the/DT
Environmental/NNP
Defense/NNP
Fund/NNP
is/VBZ
having/VBG
nothing/NN
to/TO
do/VB
with/IN
this/DT
one/CD
./.
Not/RB
only/JJ
Californians/NNS
but/CC
all/DT
Americans/NNS
would/MD
pay/VB
if/IN
this/DT
thing/NN
passed/VBD
./.
The/DT
initiative/NN
bars/VBZ
the/DT
sale/NN
of/IN
any/DT
crops/NNS
in/IN
California/NNP
that/WDT
do/VBP
n't/RB
meet/VB
the/DT
initiative/NN
's/POS
standards/NNS
./.
Kansas/NNP
wheat/NN
farmers/NNS
and/CC
Florida/NNP
fruit/NN
growers/NNS
would/MD
have/VB
to/TO
adjust/VB
or/CC
give/VB
up/RP
the/DT
California/NNP
market/NN
./.
In/IN
other/JJ
words/NNS
,/,
California/NNP
is/VBZ
presuming/VBG
to/TO
take/VB
control/NN
of/IN
the/DT
nation/NN
's/POS
farm/NN
policy/NN
./.
As/IN
usual/RB
the/DT
green/JJ
lobby/NN
's/POS
proposal/NN
is/VBZ
disconnected/VBN
from/IN
scientific/JJ
reality/NN
./.
Consider/VB
the/DT
greenhouse-effect/JJ
provision/NN
./.
The/DT
proposed/VBN
initiative/NN
would/MD
mandate/VB
a/DT
reduction/NN
of/IN
carbon/NN
dioxide/NN
of/IN
40/CD
%/NN
./.
Even/RB
if/IN
one/PRP
buys/VBZ
into/IN
the/DT
whole/JJ
greenhouse/NN
theory/NN
,/,
it/PRP
is/VBZ
inconceivable/JJ
that/IN
reductions/NNS
in/IN
a/DT
single/JJ
state/NN
could/MD
have/VB
any/DT
impact/NN
on/IN
what/WP
is/VBZ
billed/VBN
as/IN
a/DT
global/JJ
problem/NN
./.
But/CC
if/IN
rational/JJ
science/NN
and/CC
economics/NNS
have/VBP
nothing/NN
to/TO
do/VB
with/IN
the/DT
new/JJ
environment/NN
initiative/NN
,/,
what/WP
is/VBZ
going/VBG
on/RP
?/.
The/DT
first/JJ
place/NN
to/TO
look/VB
under/IN
these/DT
circumstances/NNS
is/VBZ
at/IN
the/DT
ways/NNS
in/IN
which/WDT
the/DT
sponsors/NNS
themselves/PRP
will/MD
benefit/VB
./.
The/DT
key/NN
here/RB
is/VBZ
the/DT
ambition/NN
of/IN
state/NN
Attorney/NNP
General/NNP
John/NNP
Van/NNP
de/NNP
Kamp/NNP
./.
He/PRP
's/VBZ
running/VBG
for/IN
governor/NN
./.
Mr./NNP
Van/NNP
de/NNP
Kamp/NNP
is/VBZ
the/DT
one/CD
who/WP
collected/VBD
the/DT
plans/NNS
from/IN
the/DT
various/JJ
radical/JJ
environmental/JJ
groups/NNS
and/CC
cobbled/VBD
them/PRP
into/IN
a/DT
single/JJ
unwieldy/JJ
initiative/NN
to/TO
be/VB
placed/VBN
on/IN
the/DT
ballot/NN
for/IN
election/NN
on/IN
Nov./NNP
6/CD
,/,
1990/CD
./.
That/DT
's/VBZ
also/RB
the/DT
day/NN
of/IN
the/DT
gubernatorial/JJ
election/NN
./.
The/DT
initiative/NN
seems/VBZ
to/TO
have/VB
been/VBN
crafted/VBN
to/TO
include/VB
all/DT
the/DT
hot/JJ
issues/NNS
that/WDT
set/VBD
off/IN
the/DT
wealthy/JJ
Hollywood/NNP
weepers/NNS
who/WP
donate/VBP
money/NN
./.
And/CC
it/PRP
allows/VBZ
Mr./NNP
Van/NNP
de/NNP
Kamp/NNP
to/TO
get/VB
around/RP
campaign/NN
spending/NN
limits/NNS
./.
He/PRP
can/MD
spend/VB
the/DT
legal/JJ
maximum/NN
for/IN
his/PRP$
campaign/NN
;/:
all/DT
the/DT
spending/NN
for/IN
the/DT
Van/NNP
de/NNP
Kamp/NNP
initiative/NN
which/WDT
there/EX
are/VBP
no/DT
limits/NNS
gravy/NN
./.
This/DT
initiative/NN
is/VBZ
being/VBG
labeled/VBN
The/DT
Big/NNP
Green/NNP
,/,
but/CC
maybe/RB
it/PRP
should/MD
be/VB
called/VBN
The/DT
Big/NNP
Greenback/NNP
./.
The/DT
Republican/JJ
candidate/NN
,/,
Sen./NNP
Pete/NNP
Wilson/NNP
,/,
is/VBZ
playing/VBG
the/DT
initiative/NN
fundraising/VBG
game/NN
too/RB
,/,
sponsoring/VBG
his/PRP$
own/JJ
crime/NN
initiative/NN
./.
While/IN
it/PRP
is/VBZ
possible/JJ
that/IN
the/DT
Big/NNP
Green/NNP
initiative/NN
will/MD
be/VB
ruled/VBN
unconstitutional/JJ
,/,
it/PRP
is/VBZ
of/IN
course/NN
conceivable/JJ
that/IN
in/IN
modern/JJ
California/NNP
it/PRP
could/MD
slide/VB
through/RB
./.
This/DT
is/VBZ
the/DT
state/NN
that/WDT
recently/RB
passed/VBD
the/DT
Prop./NNP
65/CD
anti-toxic/JJ
initiative/NN
./.
If/IN
this/DT
new/JJ
proposal/NN
ever/RB
does/VBZ
become/VBN
law/NN
,/,
the/DT
green/JJ
lobby/NN
will/MD
benefit/VB
directly/RB
./.
The/DT
initiative/NN
creates/VBZ
a/DT
free/JJ
floating/JJ
state/NN
environmental/JJ
officer/NN
to/TO
sue/VB
companies/NNS
or/CC
government/NN
agencies/NNS
that/WDT
do/VBP
things/NNS
he/PRP
does/VBZ
n't/RB
like/VB
./.
That/DT
means/VBZ
the/DT
NRDC/NNP
and/CC
such/JJ
groups/NNS
no/RB
longer/RBR
would/MD
have/VB
to/TO
spend/VB
as/IN
much/JJ
money/NN
on/IN
litigation/NN
;/:
taxpayers/NNS
would/MD
bear/VB
the/DT
cost/NN
./.
Mr./NNP
Van/NNP
de/NNP
Kamp/NNP
and/CC
his/PRP$
allies/NNS
may/MD
be/VB
hoping/VBG
that/IN
the/DT
environment/NN
is/VBZ
such/JJ
a/DT
mom/NN
and/CC
apple-pie/NN
issue/NN
among/IN
certain/JJ
segments/NNS
of/IN
California/NNP
's/POS
population/NN
now/RB
that/IN
almost/RB
any/DT
collection/NN
of/IN
anti-scientific/JJ
,/,
anti-pocketbook/JJ
nonsense/NN
can/MD
pass/VB
under/IN
its/PRP$
rubric/NN
./.
Of/IN
course/NN
the/DT
state/NN
's/POS
liberals/NNS
are/VBP
not/RB
yet/RB
a/DT
nation/NN
unto/IN
themselves/PRP
./.
George/NNP
Bush/NNP
,/,
for/IN
example/NN
,/,
may/MD
decide/VB
that/IN
he/PRP
does/VBZ
n't/RB
want/VB
to/TO
be/VB
the/DT
President/NNP
who/WP
lost/VBD
control/NN
of/IN
interstate/JJ
commerce/NN
to/TO
an/DT
attorney/NN
general/JJ
from/IN
California/NNP
./.
And/CC
some/DT
other/JJ
segments/NNS
of/IN
California/NNP
's/POS
political/JJ
and/CC
media/NNS
culture/NN
may/MD
yet/RB
start/VB
to/TO
point/VB
out/RP
that/IN
the/DT
initiative/NN
would/MD
impose/VB
significant/JJ
costs/NNS
on/IN
the/DT
state/NN
's/POS
less/RBR
affluent/JJ
citizens/NNS
in/IN
the/DT
form/NN
of/IN
higher/JJR
food/NN
prices/NNS
and/CC
lost/VBN
jobs/NNS
./.
This/DT
grandiose/JJ
initiative/NN
will/MD
help/VB
California/NNP
define/VB
itself/PRP
for/IN
the/DT
future/NN
either/CC
as/IN
a/DT
state/NN
still/RB
tethered/VBN
to/TO
economic/JJ
and/CC
scientific/JJ
reality/NN
,/,
or/CC
as/IN
one/CD
being/VBG
led/VBN
to/TO
wherever/WRB
its/PRP$
la-la/JJ
activists/NNS
want/VBP
to/TO
take/VB
it/PRP
./.
First/RB
,/,
there/EX
was/VBD
a/DT
death/NN
watch/NN
./.
Then/RB
exhilaration/NN
./.
Spurred/VBN
by/IN
waves/NNS
of/IN
large-scale/JJ
buying/NN
in/IN
blue-chip/JJ
stocks/NNS
,/,
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
rallied/VBD
yesterday/NN
and/CC
erased/VBN
about/RB
a/DT
half/NN
of/IN
Friday/NNP
's/POS
190.58-point/JJ
plunge/NN
,/,
gaining/VBG
88.12/CD
to/TO
2657.38/CD
./.
It/PRP
was/VBD
the/DT
fourth-biggest/JJ
advance/NN
for/IN
the/DT
average/NN
of/IN
30/CD
blue/JJ
chips/NNS
,/,
on/IN
frenetic/JJ
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
volume/NN
of/IN
416,290,000/CD
shares/NNS
--/:
the/DT
highest/JJS
since/IN
the/DT
days/NNS
after/IN
the/DT
1987/CD
crash/NN
./.
While/IN
the/DT
advance/NN
cheered/VBD
investors/NNS
who/WP
feared/VBD
a/DT
1987-style/JJ
crash/NN
would/MD
occur/VB
yesterday/NN
,/,
it/PRP
was/VBD
strictly/RB
a/DT
big-stock/JJ
rally/NN
fed/VBN
by/IN
huge/JJ
buying/NN
by/IN
bargain-hunting/JJ
institutions/NNS
and/CC
program/NN
traders/NNS
./.
A/DT
troubling/VBG
sign/NN
:/:
Declining/VBG
stocks/NNS
on/IN
the/DT
Big/NNP
Board/NNP
outnumbered/VBD
advancers/NNS
,/,
975/CD
to/TO
749/CD
,/,
and/CC
the/DT
over-the-counter/JJ
market/NN
that/WDT
includes/VBZ
many/JJ
smaller/JJR
stocks/NNS
suffered/VBD
aftershocks/NNS
of/IN
Friday/NNP
's/POS
late/JJ
Big/NNP
Board/NNP
plunge/NN
./.
The/DT
Nasdaq/NNP
OTC/NNP
index/NN
closed/VBN
down/RB
6.31/CD
to/TO
460.98/CD
./.
Meanwhile/RB
,/,
in/IN
a/DT
divergence/NN
in/IN
two/CD
of/IN
the/DT
market/NN
's/POS
most/RBS
important/JJ
indicators/NNS
,/,
the/DT
Dow/NNP
industrials/NNS
'/POS
sister/NN
average/NN
,/,
the/DT
20-stock/JJ
Dow/NNP
Jones/NNP
Transportation/NNP
Average/NNP
,/,
tumbled/VBD
102.06/CD
to/TO
1304.23/CD
--/:
its/PRP$
second-worst/JJ
decline/NN
next/JJ
to/TO
the/DT
164.78-point/JJ
fall/NN
during/IN
the/DT
1987/CD
crash/NN
./.
Transports/NNS
plunged/VBD
on/IN
takeover/NN
disappointments/NNS
in/IN
two/CD
airline/NN
stocks/NNS
,/,
UAL/NNP
and/CC
AMR/NNP
,/,
which/WDT
each/DT
fell/VBD
more/RBR
than/IN
20/CD
%/NN
when/WRB
they/PRP
reopened/VBD
for/IN
trading/NN
yesterday/NN
after/IN
being/VBG
suspended/VBN
Friday/NNP
afternoon/NN
./.
UAL/NNP
,/,
the/DT
takeover/NN
stock/NN
at/IN
the/DT
center/NN
of/IN
Friday/NNP
's/POS
190.58-point/JJ
market/NN
plunge/NN
,/,
fell/VBD
56/CD
7\/8/CD
to/TO
222/CD
7\/8/CD
on/IN
nearly/RB
2.3/CD
million/CD
shares/NNS
./.
Overall/RB
,/,
``/``
this/DT
is/VBZ
a/DT
pleasant/JJ
rally/NN
but/CC
it/PRP
's/VBZ
very/RB
selective/JJ
,/,
''/''
said/VBD
Arthur/NNP
Cashin/NNP
Jr./NNP
,/,
a/DT
veteran/JJ
PaineWebber/NNP
Inc./NNP
trader/NN
at/IN
the/DT
Big/NNP
Board/NNP
./.
``/``
Everyone/NN
was/VBD
a/DT
little/RB
concerned/VBN
about/IN
the/DT
general/JJ
narrowness/NN
of/IN
the/DT
rally/NN
and/CC
failure/NN
of/IN
the/DT
OTC/NNP
market/NN
to/TO
get/VB
into/IN
plus/JJ
territory/NN
./.
It/PRP
's/VBZ
just/RB
a/DT
strange/JJ
feeling/NN
./.
I/PRP
do/VBP
n't/RB
think/VBP
anyone/NN
left/VBD
the/DT
place/NN
whistling/VBG
Dixie/NNP
./.
''/''
The/DT
rally/NN
gave/VBD
credence/NN
,/,
at/IN
least/JJS
for/IN
now/RB
,/,
to/TO
the/DT
pre-trading/JJ
declaration/NN
of/IN
Big/NNP
Board/NNP
Chairman/NNP
John/NNP
J./NNP
Phelan/NNP
Jr./NNP
that/IN
Friday/NNP
's/POS
market/NN
debacle/NN
was/VBD
``/``
an/DT
abnormal/JJ
condition/NN
,/,
and/CC
not/RB
a/DT
disaster/NN
./.
''/''
But/CC
to/TO
traders/NNS
,/,
it/PRP
looked/VBD
like/IN
disaster/NN
on/IN
the/DT
9:30/CD
a.m./NN
opening/VBG
bell/NN
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
opened/VBD
down/RB
1.64/CD
shortly/RB
after/IN
9:30/CD
./.
But/CC
most/JJS
of/IN
the/DT
30/CD
blue-chip/JJ
stocks/NNS
in/IN
the/DT
average/NN
,/,
including/VBG
Eastman/NNP
Kodak/NNP
and/CC
General/NNP
Motors/NNP
,/,
could/MD
n't/RB
trade/VB
because/RB
of/IN
the/DT
heavy/JJ
backlog/NN
of/IN
sell/NN
orders/NNS
left/VBD
over/RP
from/IN
Friday/NNP
's/POS
late-afternoon/JJ
rout/NN
./.
At/IN
9:45/CD
,/,
Procter/NNP
&/CC
Gamble/NNP
--/:
one/CD
of/IN
the/DT
most/RBS
important/JJ
Dow/NNP
bellwethers/NNS
of/IN
late/JJ
--/:
opened/VBN
down/RB
2/CD
3\/4/CD
to/TO
117/CD
./.
The/DT
Dow/NNP
dropped/VBD
to/TO
a/DT
quick/JJ
27-point/JJ
loss/NN
,/,
and/CC
to/TO
many/JJ
traders/NNS
it/PRP
looked/VBD
as/IN
if/IN
stocks/NNS
were/VBD
headed/VBN
for/IN
yet/RB
another/DT
big/JJ
tumble/NN
./.
More/JJR
stocks/NNS
opened/VBN
over/IN
the/DT
ensuing/VBG
half/JJ
hour/NN
,/,
as/IN
the/DT
49/CD
Big/NNP
Board/NNP
specialist/NN
firms/NNS
in/IN
charge/NN
of/IN
keeping/VBG
the/DT
market/NN
orderly/RB
groped/VBD
to/TO
find/VB
buy/NN
orders/NNS
from/IN
major/JJ
brokerage/NN
firms/NNS
to/TO
match/VB
the/DT
selling/NN
flood/NN
./.
Then/RB
,/,
to/TO
make/VB
matters/NNS
worse/JJR
,/,
computerized/VBN
sell/NN
programs/NNS
kicked/VBD
in/RP
,/,
hammering/VBG
stocks/NNS
into/IN
steeper/JJR
losses/NNS
./.
There/EX
was/VBD
heavy/JJ
stock-index/JJ
arbitrage/NN
,/,
as/IN
traders/NNS
sold/VBD
big/JJ
baskets/NNS
of/IN
stock/NN
and/CC
bought/VBD
stock-index/JJ
futures/NNS
to/TO
profit/VB
from/IN
the/DT
price/NN
discrepancies/NNS
between/IN
the/DT
two/CD
markets/NNS
./.
This/DT
was/VBD
a/DT
hangover/NN
from/IN
Friday/NNP
,/,
when/WRB
Standard/NNP
&/CC
Poor/NNP
's/POS
500-stock/JJ
index/NN
futures/NNS
had/VBD
closed/VBN
at/IN
a/DT
sharp/JJ
discount/NN
to/TO
stocks/NNS
./.
The/DT
onslaught/NN
of/IN
the/DT
program/NN
selling/NN
dashed/VBN
any/DT
hopes/NNS
that/IN
some/DT
of/IN
the/DT
big/JJ
program/NN
trading/NN
firms/NNS
would/MD
hold/VB
off/RP
until/IN
the/DT
market/NN
stabilized/VBD
./.
They/PRP
did/VBD
n't/RB
./.
The/DT
Dow/NNP
accelerated/VBD
its/PRP$
slide/NN
,/,
losing/VBG
63.52/CD
in/IN
the/DT
first/JJ
40/CD
minutes/NNS
of/IN
trading/NN
./.
With/IN
program/NN
traders/NNS
seemingly/RB
in/IN
charge/NN
,/,
buyers/NNS
backed/VBD
away/RB
from/IN
the/DT
market/NN
and/CC
watched/VBD
stocks/NNS
fall/VB
./.
Then/RB
at/IN
10:15/CD
the/DT
Dow/NNP
suddenly/RB
started/VBD
to/TO
rebound/VB
,/,
and/CC
when/WRB
it/PRP
shot/VBD
upward/RB
it/PRP
did/VBD
so/RB
even/RB
faster/RBR
than/IN
the/DT
early-morning/JJ
fall/NN
./.
And/CC
this/DT
time/NN
,/,
it/PRP
was/VBD
n't/RB
just/RB
the/DT
program/NN
traders/NNS
who/WP
were/VBD
responsible/JJ
./.
All/DT
the/DT
selling/NN
had/VBD
pushed/VBN
stocks/NNS
to/TO
such/JJ
cheap/JJ
values/NNS
that/IN
big/JJ
investment/NN
banks/NNS
and/CC
major/JJ
money/NN
management/NN
firms/NNS
started/VBD
buying/VBG
stocks/NNS
heavily/RB
./.
The/DT
program/NN
traders/NNS
were/VBD
in/RB
there/RB
,/,
too/RB
,/,
of/IN
course/NN
./.
But/CC
according/VBG
to/TO
one/CD
trader/NN
,/,
the/DT
programmers/NNS
``/``
did/VBD
n't/RB
look/VB
as/RB
dominant/JJ
on/IN
the/DT
upside/RB
as/IN
on/IN
the/DT
downside/NN
because/IN
there/EX
was/VBD
{/(
also/RB
}/)
a/DT
lot/NN
of/IN
bargain-hunting/NN
''/''
by/IN
institutions/NNS
./.
Roland/NNP
M./NNP
Machold/NNP
,/,
director/NN
of/IN
the/DT
New/NNP
Jersey/NNP
Division/NNP
of/IN
Investment/NNP
,/,
which/WDT
oversees/VBZ
$/$
29/CD
billion/CD
in/IN
investments/NNS
,/,
said/VBD
the/DT
``/``
first/JJ
thing/NN
we/PRP
did/VBD
was/VBD
to/TO
double/VB
our/PRP$
orders/NNS
''/''
yesterday/NN
morning/NN
./.
``/``
With/IN
the/DT
market/NN
down/RB
like/IN
this/DT
,/,
we/PRP
'll/MD
probably/RB
take/VB
another/DT
$/$
50/CD
million/CD
and/CC
put/VBD
it/PRP
in/IN
''/''
the/DT
market/NN
./.
Trading/NN
in/IN
Walt/NNP
Disney/NNP
Co./NNP
particularly/RB
caught/VBD
traders/NNS
'/POS
eyes/NNS
./.
According/VBG
to/TO
Big/NNP
Board/NNP
officials/NNS
,/,
Disney/NNP
had/VBD
one/CD
of/IN
the/DT
biggest/JJS
sell-order/JJ
imbalances/NNS
on/IN
Friday/NNP
;/:
it/PRP
was/VBD
one/CD
of/IN
the/DT
seven/CD
stocks/NNS
that/WDT
could/MD
n't/RB
finish/VB
trading/NN
that/DT
day/NN
./.
The/DT
stock/NN
opened/VBD
late/RB
at/IN
114/CD
1\/2/CD
,/,
down/RB
8/CD
1\/2/CD
./.
But/CC
then/RB
it/PRP
shot/VBD
upward/RB
7/CD
1\/2/CD
as/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
stepped/VBD
in/RB
and/CC
bought/VBD
,/,
traders/NNS
said/VBD
./.
However/RB
,/,
Disney/NNP
specialist/NN
Robert/NNP
Fagenson/NNP
said/VBD
:/:
``/``
I/PRP
would/MD
be/VB
surprised/VBN
if/IN
Goldman/NNP
represented/VBD
4/CD
%/NN
of/IN
the/DT
opening/NN
volume/NN
./.
''/''
Around/IN
Wall/NNP
Street/NNP
,/,
trading/NN
desks/NNS
were/VBD
relieved/VBN
that/IN
they/PRP
could/MD
at/IN
least/JJS
play/VB
the/DT
market/NN
yesterday/NN
,/,
in/IN
contrast/NN
to/TO
Friday/NNP
's/POS
gridlock/NN
./.
At/IN
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
Inc./NNP
,/,
head/NN
equity/NN
trader/NN
Dudley/NNP
Eppel/NNP
said/VBD
:/:
``/``
I/PRP
think/VBP
the/DT
opening/NN
was/VBD
constructive/JJ
./.
It/PRP
was/VBD
orderly/JJ
./.
We/PRP
put/VBP
some/DT
orders/NNS
together/RB
./.
There/RB
was/VBD
n't/RB
a/DT
lot/NN
of/IN
panic/NN
selling/NN
,/,
either/DT
domestically/RB
or/CC
internationally/RB
.../:
./.
Not/RB
like/IN
Friday/NNP
where/WRB
they/PRP
just/RB
took/VBD
{/(
the/DT
market/NN
''/''
Still/RB
,/,
the/DT
market/NN
had/VBD
n't/RB
yet/RB
crossed/VBN
into/IN
positive/JJ
territory/NN
,/,
and/CC
traders/NNS
were/VBD
glum/JJ
./.
But/CC
in/IN
another/DT
dramatic/JJ
burst/NN
,/,
the/DT
Dow/NNP
tacked/VBD
on/RP
42/CD
points/NNS
in/IN
five/CD
minutes/NNS
,/,
and/CC
at/IN
10:25/CD
the/DT
index/NN
showed/VBD
a/DT
gain/NN
of/IN
5.74/CD
./.
On/IN
the/DT
Big/NNP
Board/NNP
floor/NN
and/CC
on/IN
trading/NN
desks/NNS
,/,
traders/NNS
yelped/VBD
their/PRP$
approval/NN
./.
Grinned/VBD
Griffith/NNP
Peck/NNP
,/,
a/DT
trader/NN
in/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
's/POS
OTC/NNP
department/NN
:/:
``/``
I/PRP
tell/VBP
you/PRP
,/,
this/DT
market/NN
acts/VBZ
healthy/JJ
./.
''/''
Around/IN
him/PRP
,/,
scores/NNS
of/IN
traders/NNS
seemed/VBD
to/TO
get/VB
a/DT
burst/NN
of/IN
energy/NN
;/:
their/PRP$
boss/NN
broke/VBD
out/RP
bottles/NNS
of/IN
Perrier/NNP
water/NN
to/TO
cool/VB
them/PRP
off/RP
./.
Among/IN
Big/NNP
Board/NNP
specialists/NNS
,/,
the/DT
cry/NN
was/VBD
``/``
Pull/VB
your/PRP$
offers/NNS
''/''
--/:
meaning/VBG
that/IN
specialists/NNS
soon/RB
expected/VBN
to/TO
get/VB
higher/JJR
prices/NNS
for/IN
their/PRP$
shares/NNS
./.
``/``
It/PRP
was/VBD
bedlam/NN
on/IN
the/DT
upside/JJ
,/,
''/''
said/VBD
one/CD
Big/NNP
Board/NNP
specialist/NN
./.
But/CC
not/RB
everybody/NN
was/VBD
making/VBG
money/NN
./.
The/DT
carnage/NN
on/IN
the/DT
Chicago/NNP
Board/NNP
Options/NNP
Exchange/NNP
,/,
the/DT
nation/NN
's/POS
major/JJ
options/NNS
market/NN
,/,
was/VBD
heavy/JJ
after/IN
the/DT
trading/NN
in/IN
S&P/NNP
100/CD
stock-index/JJ
options/NNS
was/VBD
halted/VBN
Friday/NNP
./.
Many/JJ
market/NN
makers/NNS
in/IN
the/DT
S&P/NNP
100/CD
index/NN
options/NNS
contract/NN
had/VBD
bullish/JJ
positions/NNS
Friday/NNP
,/,
and/CC
when/WRB
the/DT
shutdown/NN
came/VBD
they/PRP
were/VBD
frozen/VBN
with/IN
huge/JJ
losses/NNS
./.
Over/IN
the/DT
weekend/NN
,/,
clearing/NN
firms/NNS
told/VBD
the/DT
Chicago/NNP
market/NN
makers/NNS
to/TO
get/VB
out/IN
of/IN
their/PRP$
positions/NNS
at/IN
any/DT
cost/NN
Monday/NNP
morning/NN
./.
``/``
They/PRP
were/VBD
absolutely/RB
killed/VBN
,/,
slaughtered/VBN
,/,
''/''
said/VBD
one/CD
Chicago-based/JJ
options/NNS
trader/NN
./.
Some/DT
traders/NNS
said/VBD
that/IN
the/DT
closely/RB
watched/VBN
Major/NNP
Market/NNP
Index/NNP
,/,
whose/WP$
20/CD
stocks/NNS
mimic/VBP
the/DT
Dow/NNP
industrials/NNS
,/,
did/VBD
n't/RB
lead/VB
yesterday/NN
's/POS
big/JJ
rally/NN
./.
James/NNP
Gallagher/NNP
,/,
a/DT
partner/NN
at/IN
specialist/NN
Fowler/NNP
&/CC
Rosenau/NNP
,/,
said/VBD
,/,
``/``
The/DT
difference/NN
between/IN
today/NN
and/CC
two/CD
years/NNS
ago/RB
''/''
--/:
``/``
Terrible/NNP
Tuesday/NNP
,/,
''/''
Oct./NNP
20/CD
,/,
1987/CD
--/:
``/``
is/VBZ
that/DT
then/RB
we/PRP
needed/VBD
a/DT
savior/NN
to/TO
go/VB
into/IN
the/DT
Major/NNP
Market/NNP
Index/NNP
,/,
spend/VB
$/$
2/CD
million/CD
and/CC
get/VB
the/DT
program/NN
rally/NN
started/VBD
./.
This/DT
time/NN
institutions/NNS
the/DT
programs/NNS
coming/VBG
and/CC
backed/VBD
away/RB
and/CC
backed/VBD
away/RB
./.
Then/RB
when/WRB
the/DT
market/NN
was/VBD
at/IN
a/DT
technical/JJ
level/NN
to/TO
buy/VB
,/,
they/PRP
came/VBD
in/RB
with/IN
a/DT
vengeance/NN
./.
''/''
However/RB
,/,
according/VBG
to/TO
one/CD
analyst/NN
,/,
the/DT
timing/NN
of/IN
Major/NNP
Market/NNP
Index/NNP
futures/NNS
buying/NN
just/RB
before/IN
the/DT
turnaround/NN
was/VBD
similar/JJ
to/TO
that/DT
of/IN
Terrible/NNP
Tuesday/NNP
./.
``/``
Futures/NNS
were/VBD
pulling/VBG
the/DT
stock/NN
market/NN
higher/RBR
,/,
''/''
said/VBD
Donald/NNP
Selkin/NNP
,/,
head/NN
of/IN
stock-index/JJ
futures/NNS
research/NN
at/IN
Prudential-Bache/NNP
Securities/NNP
Inc/NNP
./.
Although/IN
the/DT
Big/NNP
Board/NNP
's/POS
specialist/NN
firms/NNS
struggled/VBD
through/IN
another/DT
highly/RB
volatile/JJ
trading/NN
session/NN
,/,
their/PRP$
performance/NN
yesterday/NN
was/VBD
better/RBR
than/IN
during/IN
Friday/NNP
's/POS
late-afternoon/JJ
chaos/NN
,/,
according/VBG
to/TO
traders/NNS
and/CC
brokers/NNS
who/WP
work/VBP
with/IN
them/PRP
./.
Specialists/NNS
were/VBD
criticized/VBN
for/IN
their/PRP$
inability/NN
to/TO
maintain/VB
orderly/JJ
markets/NNS
during/IN
the/DT
Friday/NNP
plunge/NN
./.
But/CC
yesterday/NN
,/,
even/RB
with/IN
halts/NNS
in/IN
such/JJ
major/JJ
blue-chip/JJ
stocks/NNS
as/IN
Merck/NNP
,/,
``/``
we/PRP
expected/VBD
(/(
the/DT
halts/NNS
it/PRP
was/VBD
n't/RB
too/RB
bad/JJ
,/,
''/''
said/VBD
Donaldson/NNP
's/POS
Mr./NNP
Eppel/NNP
,/,
who/WP
had/VBD
been/VBN
critical/JJ
of/IN
the/DT
specialists/NNS
'/POS
performance/NN
on/IN
Friday/NNP
./.
According/VBG
to/TO
a/DT
Big/NNP
Board/NNP
official/NN
,/,
while/IN
many/JJ
stocks/NNS
opened/VBD
late/RB
,/,
there/EX
were/VBD
subsequent/JJ
trading/VBG
halts/NNS
in/IN
only/RB
three/CD
issues/NNS
--/:
AMR/NNP
,/,
Merck/NNP
and/CC
Valero/NNP
Energy/NNP
./.
Merck/NNP
is/VBZ
one/CD
of/IN
the/DT
most/RBS
important/JJ
stocks/NNS
in/IN
the/DT
Major/NNP
Market/NNP
Index/NNP
./.
No/DT
sector/NN
of/IN
the/DT
market/NN
has/VBZ
been/VBN
spared/VBN
during/IN
the/DT
past/JJ
two/CD
days/NNS
'/POS
gyrations/NNS
./.
Yet/RB
from/IN
the/DT
Dow/NNP
industrials/NNS
'/POS
high/NN
on/IN
Oct./NNP
9/CD
through/IN
Friday/NNP
's/POS
plunge/NN
,/,
relatively/RB
good/JJ
performances/NNS
have/VBP
been/VBN
turned/VBN
in/RP
by/IN
real-estate/NN
,/,
utilities/NNS
,/,
precious/JJ
metals/NNS
and/CC
life/NN
insurance/NN
stocks/NNS
./.
And/CC
yesterday/NN
,/,
the/DT
top/JJ
performing/NN
industry/NN
group/NN
was/VBD
oil/NN
field/NN
equipment/NN
issues/NNS
./.
For/IN
example/NN
,/,
Halliburton/NNP
jumped/VBD
3/CD
1\/4/CD
to/TO
38/CD
,/,
Schlumberger/NNP
rose/VBD
2/CD
1\/2/CD
to/TO
43/CD
1\/4/CD
and/CC
Baker/NNP
Hughes/NNP
rose/VBD
1/CD
1\/8/CD
to/TO
22/CD
./.
Because/IN
of/IN
the/DT
UAL/NNP
and/CC
AMR/NNP
tumbles/NNS
,/,
airlines/NNS
were/VBD
the/DT
weakest/JJS
sector/NN
of/IN
the/DT
market/NN
yesterday/NN
./.
Philip/NNP
Morris/NNP
was/VBD
the/DT
Big/NNP
Board/NNP
's/POS
most/RBS
active/JJ
issue/NN
,/,
rising/VBG
2/CD
1\/4/CD
to/TO
43/CD
1\/4/CD
on/IN
nearly/RB
eight/CD
million/CD
shares/NNS
./.
Among/IN
other/JJ
major/JJ
issues/NNS
,/,
Coca-Cola/NNP
Co./NNP
closed/VBD
up/RB
2/CD
at/IN
66/CD
3\/4/CD
on/IN
1.7/CD
million/CD
shares/NNS
and/CC
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
rose/VBD
3/CD
1\/4/CD
to/TO
43/CD
on/IN
nearly/RB
7.8/CD
million/CD
shares/NNS
./.
Shares/NNP
of/IN
International/NNP
Business/NNP
Machines/NNP
,/,
which/WDT
reported/VBD
earnings/NNS
yesterday/NN
,/,
finished/VBN
at/IN
103/CD
,/,
up/RB
1/CD
,/,
after/IN
slipping/VBG
below/IN
100/CD
during/IN
Friday/NNP
's/POS
session/NN
for/IN
the/DT
first/JJ
time/NN
in/IN
five/CD
years/NNS
./.
Shares/NNS
of/IN
three/CD
brokerage/NN
firms/NNS
rose/VBD
after/IN
they/PRP
reported/VBD
earnings/NNS
./.
Merrill/NNP
Lynch/NNP
added/VBD
1/CD
3\/4/CD
to/TO
28/CD
,/,
PaineWebber/NNP
rose/VBD
3\/4/CD
to/TO
18/CD
1\/2/CD
and/CC
Bear/NNP
Stearns/NNP
rose/VBD
3\/8/CD
to/TO
14/CD
1\/4/CD
./.
Federal/NNP
National/NNP
Mortgage/NNP
Association/NNP
,/,
a/DT
recently/RB
hot/JJ
stock/NN
,/,
climbed/VBD
4/CD
to/TO
124/CD
on/IN
nearly/RB
1.6/CD
million/CD
shares/NNS
./.
At/IN
a/DT
news/NN
conference/NN
after/IN
the/DT
close/NN
of/IN
trading/NN
yesterday/NN
,/,
the/DT
Big/NNP
Board/NNP
's/POS
Mr./NNP
Phelan/NNP
and/CC
other/JJ
exchange/NN
officials/NNS
praised/VBD
the/DT
performance/NN
of/IN
their/PRP$
computers/NNS
and/CC
personnel/NNS
./.
Mr./NNP
Phelan/NNP
said/VBD
that/DT
program/NN
trading/NN
strategies/NNS
were/VBD
n't/RB
responsible/JJ
for/IN
triggering/VBG
Friday/NNP
's/POS
decline/NN
despite/IN
a/DT
jump/NN
in/IN
the/DT
use/NN
of/IN
the/DT
computer-driven/JJ
strategies/NNS
in/IN
recent/JJ
months/NNS
./.
Some/DT
24/CD
million/CD
of/IN
the/DT
more/JJR
than/IN
100/CD
million/CD
shares/NNS
traded/VBN
in/IN
the/DT
final/JJ
90/CD
minutes/NNS
of/IN
Friday/NNP
's/POS
session/NN
,/,
when/WRB
the/DT
plunge/NN
in/IN
stock/NN
prices/NNS
was/VBD
concentrated/VBN
,/,
were/VBD
program-related/JJ
,/,
he/PRP
said/VBD
./.
Program/NN
trades/NNS
make/VBP
up/RP
10/CD
%/NN
of/IN
the/DT
exchange/NN
's/POS
volume/NN
on/IN
an/DT
average/JJ
day/NN
,/,
but/CC
despite/IN
the/DT
increase/NN
Friday/NNP
,/,
it/PRP
was/VBD
``/``
certainly/RB
not/RB
something/NN
you/PRP
would/MD
say/VB
precipitated/VBD
the/DT
market/NN
decline/NN
,/,
''/''
Mr./NNP
Phelan/NNP
said/VBD
./.
Mr./NNP
Phelan/NNP
expressed/VBD
relief/NN
that/IN
the/DT
market/NN
rebounded/VBD
yesterday/NN
./.
``/``
Obviously/RB
,/,
every/DT
time/NN
we/PRP
get/VBP
this/DT
kind/NN
of/IN
reaction/NN
,/,
it/PRP
's/VBZ
going/VBG
to/TO
make/VB
everybody/NN
nervous/JJ
,/,
including/VBG
me/PRP
,/,
''/''
he/PRP
said/VBD
./.
He/PRP
said/VBD
that/IN
exchange/NN
officials/NNS
had/VBD
conversations/NNS
with/IN
Wall/NNP
Street/NNP
firms/NNS
throughout/IN
the/DT
weekend/NN
and/CC
that/IN
``/``
all/DT
the/DT
participants/NNS
behaved/VBD
very/RB
,/,
very/RB
responsibly/RB
today/NN
./.
''/''
Meanwhile/RB
,/,
Peter/NNP
DaPuzzo/NNP
,/,
Shearson/NNP
's/POS
head/NN
of/IN
retail/JJ
equity/NN
trading/NN
,/,
praised/VBD
institutional/JJ
investors/NNS
in/IN
the/DT
OTC/NNP
market/NN
,/,
who/WP
were/VBD
heavy/JJ
buyers/NNS
of/IN
the/DT
Nasdaq/NNP
's/POS
biggest/JJS
technology/NN
issues/NNS
yesterday/NN
amid/IN
a/DT
flood/NN
of/IN
selling/NN
by/IN
other/JJ
investors/NNS
./.
``/``
The/DT
institutions/NNS
ca/MD
n't/RB
be/VB
criticized/VBN
for/IN
their/PRP$
behavior/NN
,/,
''/''
Mr./NNP
DaPuzzo/NNP
said/VBD
in/IN
an/DT
interview/NN
./.
``/``
It/PRP
was/VBD
the/DT
opposite/NN
of/IN
what/WP
happened/VBD
on/IN
Oct./NNP
19/CD
./.
They/PRP
used/VBD
their/PRP$
judgment/NN
./.
They/PRP
did/VBD
n't/RB
panic/NN
during/IN
the/DT
first/JJ
round/NN
of/IN
selling/NN
this/DT
morning/NN
./.
Instead/RB
,/,
they/PRP
bought/VBD
on/IN
weakness/NN
and/CC
sold/VBD
into/IN
the/DT
strength/NN
,/,
which/WDT
kept/VBD
the/DT
market/NN
orderly/JJ
./.
Maybe/RB
they/PRP
learned/VBD
from/IN
experience/NN
./.
''/''
Mr./NNP
Phelan/NNP
said/VBD
the/DT
performance/NN
of/IN
specialists/NNS
during/IN
Friday/NNP
's/POS
plunge/NN
was/VBD
admirable/JJ
,/,
because/IN
out/IN
of/IN
1,640/CD
Big/NNP
Board/NNP
common/JJ
stocks/NNS
traded/VBN
during/IN
the/DT
day/NN
only/RB
seven/CD
were/VBD
closed/VBN
and/CC
were/VBD
n't/RB
reopened/VBN
before/IN
the/DT
close/NN
./.
``/``
They/PRP
did/VBD
an/DT
excellent/JJ
job/NN
,/,
''/''
Mr./NNP
Phelan/NNP
said/VBD
of/IN
the/DT
specialists/NNS
./.
Wall/NNP
Street/NNP
traders/NNS
on/IN
Friday/NNP
had/VBD
complained/VBN
about/IN
the/DT
trading/VBG
suspensions/NNS
./.
James/NNP
A./NNP
White/NNP
and/CC
Sonja/NNP
Steptoe/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
West/NNP
Germany/NNP
's/POS
Green/NNP
Party/NNP
joined/VBD
its/PRP$
ideological/JJ
soulmates/NNS
Jeremy/NNP
Rifkin/NNP
and/CC
the/DT
Christic/NNP
Institute/NNP
in/IN
the/DT
legal/JJ
battle/NN
to/TO
ground/VB
the/DT
Atlantis/NNP
shuttle/NN
and/CC
its/PRP$
plutonium-powered/JJ
Galileo/NNP
probe/NN
to/TO
Jupiter/NNP
./.
The/DT
anti-defense/JJ
Greens/NNS
wanted/VBD
a/DT
Washington/NNP
federal/JJ
appeals/NNS
court/NN
to/TO
block/VB
today/NN
's/POS
scheduled/VBN
liftoff/NN
long/RB
enough/RB
for/IN
them/PRP
to/TO
ask/VB
the/DT
World/NNP
Court/NNP
to/TO
``/``
order/VB
''/''
a/DT
permanent/JJ
cancellation/NN
of/IN
the/DT
$/$
1.5/CD
billion/CD
flight/NN
./.
A/DT
three-judge/JJ
appeals/NNS
panel/NN
yesterday/NN
refused/VBD
to/TO
comply/VB
,/,
though/IN
liberal/JJ
Judge/NNP
Pat/NNP
Wald/NNP
went/VBD
out/IN
of/IN
her/PRP$
way/NN
to/TO
deny/VB
that/IN
this/DT
was/VBD
a/DT
``/``
frivolous/JJ
''/''
case/NN
./.
Of/IN
course/NN
it/PRP
was/VBD
./.
NASA/NNP
should/MD
now/RB
sue/VB
for/IN
fines/NNS
against/IN
all/DT
three/CD
politico-plaintiffs/NNS
,/,
foreign/JJ
and/CC
domestic/JJ
,/,
for/IN
bringing/VBG
this/DT
mischievous/JJ
case/NN
./.
A/DT
House-Senate/JJ
conference/NN
approved/VBD
a/DT
permanent/JJ
smoking/NN
ban/NN
on/IN
all/DT
domestic/JJ
airline/NN
routes/NNS
within/IN
the/DT
continental/JJ
U.S./NNP
and/CC
on/IN
all/DT
flights/NNS
of/IN
six/CD
hours/NNS
or/CC
less/JJR
to/TO
Alaska/NNP
and/CC
Hawaii/NNP
./.
The/DT
restrictions/NNS
would/MD
cover/VB
all/DT
but/CC
a/DT
small/JJ
percentage/NN
of/IN
domestic/JJ
air/NN
traffic/NN
,/,
and/CC
represent/VB
a/DT
major/JJ
expansion/NN
of/IN
the/DT
current/JJ
smoking/NN
ban/NN
on/IN
flights/NNS
of/IN
two/CD
hours/NNS
or/CC
less/JJR
./.
The/DT
exemption/NN
allowed/VBN
on/IN
longer/JJR
flights/NNS
to/TO
Alaska/NNP
and/CC
Hawaii/NNP
appears/VBZ
to/TO
be/VB
largely/RB
a/DT
face-saving/JJ
concession/NN
for/IN
the/DT
traditionally/RB
powerful/JJ
tobacco/NN
industry/NN
,/,
which/WDT
has/VBZ
found/VBN
itself/PRP
increasingly/RB
isolated/VBN
in/IN
the/DT
face/NN
of/IN
public/JJ
pressure/NN
in/IN
recent/JJ
years/NNS
./.
By/IN
a/DT
6-4/CD
margin/NN
,/,
House/NNP
negotiators/NNS
initially/RB
rejected/VBD
last/JJ
night/NN
a/DT
Senate/NNP
provision/NN
covering/VBG
all/DT
domestic/JJ
flights/NNS
./.
But/CC
the/DT
six-hour/JJ
compromise/NN
was/VBD
soon/RB
agreed/VBN
to/TO
in/IN
subsequent/JJ
discussions/NNS
./.
As/IN
a/DT
practical/JJ
matter/NN
,/,
flights/NNS
from/IN
the/DT
West/NNP
Coast/NNP
to/TO
Hawaii/NNP
would/MD
be/VB
covered/VBN
as/IN
they/PRP
are/VBP
under/IN
the/DT
time/NN
limit/NN
,/,
but/CC
the/DT
language/NN
would/MD
exempt/VB
longer/JJR
routes/NNS
beginning/VBG
,/,
for/IN
example/NN
,/,
in/IN
Chicago/NNP
or/CC
on/IN
the/DT
East/NNP
Coast/NNP
./.
Within/IN
the/DT
Senate/NNP
,/,
the/DT
ban/NN
has/VBZ
had/VBD
aggressive/JJ
support/NN
from/IN
Sen./NNP
Frank/NNP
Lautenberg/NNP
D./NNP
,/,
N.J./NNP
who/WP
has/VBZ
used/VBN
his/PRP$
position/NN
as/IN
a/DT
Senate/NNP
Appropriations/NNP
subcommittee/NN
chairman/NN
to/TO
garner/VB
votes/NNS
for/IN
the/DT
initiative/NN
./.
The/DT
measure/NN
is/VBZ
attached/VBN
to/TO
the/DT
more/JJR
than/IN
$/$
26/CD
billion/CD
fiscal/JJ
1990/CD
transportation/NN
bill/NN
within/IN
Mr./NNP
Lautenberg/NNP
's/POS
jurisdiction/NN
,/,
and/CC
the/DT
final/JJ
compromise/NN
is/VBZ
laced/VBN
with/IN
more/JJR
than/IN
$/$
205/CD
million/CD
in/IN
road/NN
projects/NNS
earmarked/VBN
by/IN
members/NNS
as/RB
well/RB
as/IN
funds/NNS
sought/VBD
by/IN
major/JJ
airports/NNS
,/,
including/VBG
Denver/NNP
./.
From/IN
the/DT
outset/NN
,/,
the/DT
tobacco/NN
industry/NN
has/VBZ
been/VBN
uncertain/JJ
as/IN
to/TO
what/WP
strategy/NN
to/TO
follow/VB
./.
But/CC
the/DT
industry/NN
retains/VBZ
support/NN
in/IN
the/DT
House/NNP
leadership/NN
through/IN
the/DT
influence/NN
of/IN
grower/NN
states/NNS
,/,
such/JJ
as/IN
North/NNP
Carolina/NNP
./.
Majority/NNP
Whip/NNP
William/NNP
Gray/NNP
owes/VBZ
a/DT
political/JJ
debt/NN
to/TO
Southern/JJ
agriculture/NN
lawmakers/NNS
for/IN
his/PRP$
rise/NN
in/IN
the/DT
House/NNP
,/,
and/CC
the/DT
Philadelphia/NNP
Democrat/NNP
used/VBD
his/PRP$
position/NN
in/IN
the/DT
conference/NN
to/TO
salvage/VB
the/DT
exemption/NN
from/IN
a/DT
total/JJ
ban/NN
./.
Although/IN
the/DT
smoking/NN
provision/NN
has/VBZ
attracted/VBN
the/DT
most/RBS
public/JJ
interest/NN
,/,
the/DT
underlying/JJ
bill/NN
was/VBD
the/DT
subject/NN
of/IN
behind-the-scenes/JJ
lobbying/VBG
because/IN
of/IN
its/PRP$
impact/NN
on/IN
air/NN
transportation/NN
and/CC
the/DT
more/RBR
mundane/JJ
,/,
but/CC
politically/RB
important/JJ
,/,
projects/NNS
of/IN
members/NNS
./.
In/IN
a/DT
stark/JJ
lesson/NN
in/IN
the/DT
power/NN
of/IN
the/DT
appropriations/NNS
committees/NNS
,/,
the/DT
House/NNP
deliberately/RB
killed/VBD
a/DT
handful/NN
of/IN
projects/NNS
backed/VBN
by/IN
lawmakers/NNS
in/IN
Florida/NNP
,/,
Illinois/NNP
and/CC
Pennsylvania/NNP
who/WP
had/VBD
voted/VBN
against/IN
the/DT
panel/NN
leadership/NN
on/IN
the/DT
House/NNP
floor/NN
./.
``/``
Anybody/NN
can/MD
vote/VB
as/IN
they/PRP
want/VBP
,/,
''/''
said/VBD
Rep./NNP
William/NNP
Lehman/NNP
D./NNP
,/,
Fla./NNP
head/NN
of/IN
the/DT
House/NNP
conferees/NNS
./.
``/``
But/CC
if/IN
you/PRP
make/VBP
a/DT
request/NN
,/,
you/PRP
should/MD
support/VB
the/DT
committee/NN
./.
''/''
Within/IN
the/DT
Federal/NNP
Aviation/NNP
Administration/NNP
,/,
the/DT
final/JJ
bill/NN
promises/VBZ
to/TO
increase/VB
spending/NN
for/IN
facilities/NNS
and/CC
equipment/NN
by/IN
more/JJR
than/IN
20/CD
%/NN
from/IN
last/JJ
year/NN
,/,
and/CC
total/JJ
operations/NNS
would/MD
rise/VB
to/TO
$/$
3.84/CD
billion/CD
--/:
a/DT
12/CD
%/NN
boost/NN
./.
The/DT
facilities/NNS
account/NN
includes/VBZ
$/$
40/CD
million/CD
for/IN
Denver/NNP
's/POS
ambitious/JJ
new/JJ
airport/NN
,/,
and/CC
the/DT
competition/NN
for/IN
these/DT
funds/NNS
created/VBD
shifting/VBG
alliances/NNS
between/IN
urban/JJ
lawmakers/NNS
representing/VBG
established/VBN
airports/NNS
in/IN
Philadelphia/NNP
and/CC
Michigan/NNP
and/CC
the/DT
major/JJ
carriers/NNS
to/TO
Denver/NNP
,/,
United/NNP
and/CC
Continental/NNP
./.
Leery/JJ
of/IN
the/DT
costs/NNS
--/:
and/CC
,/,
critics/NNS
say/VBP
,/,
competition/NN
--/:
the/DT
airlines/NNS
have/VBP
sought/VBN
to/TO
gain/VB
leverage/NN
over/IN
the/DT
city/NN
of/IN
Denver/NNP
./.
Texas/NNP
Air/NNP
Corp./NNP
,/,
which/WDT
owns/VBZ
Continental/NNP
,/,
and/CC
the/DT
Air/NNP
Transport/NNP
Association/NNP
were/VBD
prominent/JJ
in/IN
the/DT
lobbying/VBG
./.
The/DT
industry/NN
sought/VBD
to/TO
impose/VB
conditions/NNS
that/WDT
would/MD
have/VB
delayed/VBN
funds/NNS
for/IN
the/DT
project/NN
until/IN
Denver/NNP
and/CC
the/DT
airlines/NNS
had/VBD
agreed/VBN
to/TO
leases/NNS
for/IN
50/CD
%/NN
of/IN
the/DT
gates/NNS
./.
But/CC
this/DT
was/VBD
rejected/VBN
in/IN
favor/NN
of/IN
much/RB
looser/JJR
language/NN
directing/VBG
the/DT
Transportation/NNP
Department/NNP
to/TO
review/VB
the/DT
costs/NNS
of/IN
the/DT
first/JJ
phase/NN
,/,
expected/VBN
to/TO
cost/VB
about/RB
$/$
2/CD
billion/CD
./.
Though/IN
smaller/JJR
in/IN
total/JJ
dollars/NNS
,/,
the/DT
conference/NN
agreed/VBD
to/TO
preserve/VB
an/DT
estimated/VBN
$/$
30.6/CD
million/CD
in/IN
controversial/JJ
subsidies/NNS
to/TO
carriers/NNS
serving/VBG
rural/JJ
or/CC
isolated/VBN
airports/NNS
./.
The/DT
sum/NN
is/VBZ
more/RBR
than/IN
double/RB
what/WP
the/DT
House/NNP
had/VBD
approved/VBN
for/IN
the/DT
program/NN
,/,
but/CC
the/DT
list/NN
of/IN
qualified/VBN
airports/NNS
would/MD
be/VB
cut/VBN
by/IN
22/CD
under/IN
new/JJ
distance/NN
requirements/NNS
and/CC
limits/NNS
on/IN
the/DT
level/NN
of/IN
subsidy/NN
./.
Congress/NNP
previously/RB
cut/VBD
six/CD
airports/NNS
this/DT
year/NN
./.
The/DT
impact/NN
of/IN
the/DT
changes/NNS
is/VBZ
to/TO
eliminate/VB
many/JJ
of/IN
the/DT
most/RBS
excessive/JJ
cases/NNS
where/WRB
the/DT
government/NN
has/VBZ
been/VBN
paying/VBG
more/JJR
than/IN
$/$
200/CD
for/IN
each/DT
passenger/NN
in/IN
subsidies/NNS
./.
Among/IN
rail/NN
and/CC
highway/NN
accounts/NNS
,/,
the/DT
agreement/NN
provides/VBZ
$/$
615/CD
million/CD
for/IN
Amtrak/NNP
,/,
including/VBG
$/$
85/CD
million/CD
for/IN
capital/NN
improvements/NNS
./.
And/CC
federal-formula/JJ
grants/NNS
for/IN
mass/NN
transit/NN
would/MD
be/VB
effectively/RB
frozen/VBN
at/IN
$/$
1.625/CD
billion/CD
,/,
or/CC
$/$
20/CD
million/CD
more/JJR
than/IN
last/JJ
fiscal/JJ
year/NN
./.
Enjoying/VBG
several/JJ
blockbuster/NN
movie/NN
hits/NNS
including/VBG
``/``
Batman/NNP
,/,
''/''
Los/NNP
Angeles-based/JJ
Guber-Peters/NNP
Entertainment/NNP
Co./NNP
reported/VBD
earnings/NNS
for/IN
the/DT
first/JJ
quarter/NN
ended/VBN
Aug./NNP
31/CD
of/IN
$/$
5.8/CD
million/CD
,/,
or/CC
50/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
a/DT
year-earlier/JJ
loss/NN
./.
Sony/NNP
Corp./NNP
,/,
which/WDT
has/VBZ
offered/VBN
to/TO
acquire/VB
the/DT
movie-production/JJ
company/NN
,/,
is/VBZ
seeking/VBG
to/TO
free/VB
its/PRP$
top/JJ
executives/NNS
,/,
Peter/NNP
Guber/NNP
and/CC
Jon/NNP
Peters/NNP
,/,
from/IN
an/DT
exclusive/JJ
agreement/NN
with/IN
Time/NNP
Warner/NNP
Inc./NNP
's/POS
Warner/NNP
Communications/NNP
Inc./NNP
so/IN
they/PRP
can/MD
run/VB
Columbia/NNP
Pictures/NNP
Entertainment/NNP
Inc/NNP
./.
Sony/NNP
two/CD
weeks/NNS
ago/RB
agreed/VBD
to/TO
acquire/VB
Columbia/NNP
for/IN
$/$
3.4/CD
billion/CD
,/,
or/CC
$/$
27/CD
a/DT
share/NN
./.
Warner/NNP
sued/VBD
Sony/NNP
and/CC
Guber-Peters/NNS
late/JJ
last/JJ
week/NN
;/:
Sony/NNP
and/CC
Guber-Peters/NNS
have/VBP
countersued/VBN
,/,
charging/VBG
Warner/NNP
with/IN
attempting/VBG
to/TO
interfere/VB
in/IN
Sony/NNP
's/POS
acquisition/NN
of/IN
the/DT
two/CD
companies/NNS
./.
Guber-Peters/NNS
's/POS
net/JJ
income/NN
in/IN
the/DT
latest/JJS
quarter/NN
compared/VBN
with/IN
a/DT
net/JJ
loss/NN
of/IN
$/$
6.9/CD
million/CD
,/,
or/CC
62/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
year-earlier/JJ
period/NN
./.
The/DT
company/NN
said/VBD
revenue/NN
rose/VBD
138/CD
%/NN
,/,
to/TO
$/$
10.9/CD
million/CD
from/IN
$/$
4.6/CD
million/CD
,/,
reflecting/VBG
the/DT
success/NN
of/IN
its/PRP$
movies/NNS
``/``
Gorillas/NNP
in/IN
the/DT
Mist/NNP
''/''
and/CC
``/``
Rainman/NNP
,/,
''/''
as/RB
well/RB
as/IN
the/DT
box-office/NN
smash/NN
``/``
Batman/NNP
./.
''/''
A/DT
group/NN
including/VBG
Jon/NNP
M./NNP
Huntsman/NNP
of/IN
Salt/NNP
Lake/NNP
City/NNP
,/,
said/VBD
it/PRP
boosted/VBD
its/PRP$
stake/NN
in/IN
Aristech/NNP
Chemical/NNP
Corp./NNP
to/TO
8.36/CD
%/NN
of/IN
the/DT
the/DT
common/JJ
shares/NNS
outstanding/JJ
./.
As/IN
previously/RB
reported/VBN
,/,
Huntsman/NNP
Holdings/NNP
Corp./NNP
,/,
owned/VBN
by/IN
Jon/NNP
M./NNP
Huntsman/NNP
and/CC
other/JJ
members/NNS
of/IN
his/PRP$
family/NN
,/,
proposed/VBD
that/IN
Banstar/NNP
Corp./NNP
,/,
an/DT
affiliate/NN
of/IN
Huntsman/NNP
Holdings/NNP
,/,
acquire/VB
Aristech/NNP
in/IN
a/DT
friendly/JJ
transaction/NN
for/IN
$/$
25-a-share/JJ
in/IN
cash/NN
,/,
or/CC
$/$
817.5/CD
million/CD
./.
In/IN
a/DT
filing/NN
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
,/,
the/DT
Huntsman/NNP
group/NN
said/VBD
it/PRP
controls/VBZ
2,720,675/CD
Aristech/NNP
common/JJ
shares/NNS
,/,
including/VBG
306,000/CD
shares/NNS
bought/VBN
from/IN
Aug./NNP
21/CD
to/TO
Oct./NNP
13/CD
for/IN
$/$
20/CD
to/TO
$/$
20.875/CD
per/IN
share/NN
./.
Officials/NNS
at/IN
Aristech/NNP
,/,
based/VBN
in/IN
Pittsburgh/NNP
,/,
declined/VBD
comment/NN
./.
Congress/NNP
has/VBZ
been/VBN
critical/JJ
of/IN
the/DT
Bush/NNP
administration/NN
for/IN
not/RB
sending/VBG
enough/JJ
aid/NN
to/TO
Poland/NNP
,/,
so/IN
it/PRP
is/VBZ
getting/VBG
ready/JJ
to/TO
send/VB
its/PRP$
own/JJ
version/NN
of/IN
a/DT
CARE/NNP
package/NN
./.
Last/JJ
month/NN
,/,
the/DT
Senate/NNP
voted/VBD
to/TO
send/VB
a/DT
delegation/NN
of/IN
congressional/JJ
staffers/NNS
to/TO
Poland/NNP
to/TO
assist/VB
its/PRP$
legislature/NN
,/,
the/DT
Sejm/NNP
,/,
in/IN
democratic/JJ
procedures/NNS
./.
Senator/NNP
Pete/NNP
Domenici/NNP
calls/VBZ
this/DT
effort/NN
``/``
the/DT
first/JJ
gift/NN
of/IN
democracy/NN
./.
''/''
The/DT
Poles/NNS
might/MD
do/VB
better/RBR
to/TO
view/VB
it/PRP
as/IN
a/DT
Trojan/NNP
Horse/NNP
./.
It/PRP
is/VBZ
the/DT
vast/JJ
shadow/NN
government/NN
of/IN
15,000/CD
congressional/JJ
staffers/NNS
that/IN
helps/VBZ
create/VB
such/JJ
legislative/JJ
atrocities/NNS
as/IN
the/DT
1,376/CD
page/NN
,/,
13-pound/JJ
reconciliation/NN
bill/NN
that/WDT
claimed/VBD
to/TO
be/VB
the/DT
budget/NN
of/IN
the/DT
United/NNP
States/NNP
./.
Maybe/RB
after/IN
the/DT
staffers/NNS
explain/VBP
their/PRP$
work/NN
to/TO
the/DT
Poles/NNS
,/,
they/PRP
'd/MD
be/VB
willing/JJ
to/TO
come/VB
back/RB
and/CC
do/VB
the/DT
same/JJ
for/IN
the/DT
American/JJ
people/NNS
./.
Waterford/NNP
Wedgwood/NNP
PLC/NNP
,/,
a/DT
financially/RB
troubled/VBN
Irish/JJ
maker/NN
of/IN
fine/JJ
crystal/NN
and/CC
Wedgwood/NNP
china/NN
,/,
reported/VBD
that/DT
its/PRP$
pretax/JJ
loss/NN
for/IN
the/DT
first/JJ
six/CD
months/NNS
widened/VBD
to/TO
10.6/CD
million/CD
Irish/JJ
punts/NNS
$/$
14.9/CD
million/CD
5.8/CD
million/CD
Irish/JJ
punts/NNS
a/DT
year/NN
earlier/RBR
./.
The/DT
results/NNS
for/IN
the/DT
half/NN
were/VBD
worse/JJR
than/IN
market/NN
expectations/NNS
,/,
which/WDT
suggested/VBD
an/DT
interim/JJ
loss/NN
of/IN
around/RB
10/CD
million/CD
Irish/JJ
punts/NNS
./.
In/IN
a/DT
sharply/RB
weaker/JJR
London/NNP
market/NN
yesterday/NN
,/,
Waterford/NNP
shares/NNS
were/VBD
down/RB
15/CD
pence/NNS
at/IN
50/CD
pence/NNS
79/CD
cents/NNS
The/DT
company/NN
reported/VBD
a/DT
loss/NN
after/IN
taxation/NN
and/CC
minority/NN
interests/NNS
of/IN
14/CD
million/CD
Irish/JJ
punts/NNS
,/,
compared/VBN
with/IN
a/DT
loss/NN
of/IN
9.3/CD
million/JJ
Irish/NNP
punts/NNS
for/IN
the/DT
year-earlier/JJ
period/NN
./.
There/EX
were/VBD
n't/RB
any/DT
extraordinary/JJ
items/NNS
./.
Sales/NNS
for/IN
the/DT
total/JJ
group/NN
rose/VBD
27/CD
%/NN
to/TO
168.1/CD
million/CD
Irish/JJ
punts/NNS
compared/VBN
with/IN
132.6/CD
million/CD
Irish/JJ
punts/NNS
a/DT
year/NN
ago/RB
./.
Waterford/NNP
has/VBZ
decided/VBN
against/IN
paying/VBG
an/DT
interim/JJ
dividend/NN
./.
Waterford/NNP
said/VBD
the/DT
appointment/NN
of/IN
a/DT
new/JJ
management/NN
team/NN
and/CC
the/DT
signing/NN
of/IN
a/DT
comprehensive/JJ
labor/NN
agreement/NN
are/VBP
expected/VBN
to/TO
enhance/VB
the/DT
company/NN
's/POS
long-term/JJ
prospects/NNS
./.
The/DT
sudden/JJ
``/``
flight/NN
to/TO
quality/NN
''/''
that/WDT
triggered/VBD
Friday/NNP
's/POS
explosive/JJ
bond-market/JJ
rally/NN
was/VBD
reversed/VBN
yesterday/NN
in/IN
a/DT
``/``
flight/NN
from/IN
quality/NN
''/''
rout/NN
./.
The/DT
setback/NN
,/,
in/IN
which/WDT
Treasury/NNP
bond/NN
prices/NNS
plummeted/VBD
,/,
reflected/VBD
a/DT
rebound/NN
in/IN
the/DT
stock/NN
market/NN
and/CC
profit-taking/NN
./.
``/``
It/PRP
was/VBD
a/DT
pretty/RB
wild/JJ
day/NN
./.
Our/PRP$
markets/NNS
were/VBD
closely/RB
tied/VBN
to/TO
the/DT
stock/NN
market/NN
,/,
''/''
said/VBD
Joel/NNP
Kazis/NNP
,/,
manager/NN
of/IN
trading/NN
at/IN
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
&/CC
Co/NNP
./.
``/``
Friday/NNP
's/POS
flight/NN
to/TO
quality/NN
was/VBD
no/DT
longer/RBR
needed/VBN
once/IN
the/DT
stock/NN
market/NN
found/VBD
its/PRP$
legs/NNS
,/,
''/''
he/PRP
said/VBD
./.
Some/DT
fixed-income/JJ
investors/NNS
had/VBD
expected/VBN
a/DT
further/JJ
drop/NN
in/IN
stock/NN
prices/NNS
after/IN
the/DT
nearly/RB
200-point/JJ
drop/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
on/IN
Friday/NNP
./.
That/IN
caused/VBN
investors/NNS
to/TO
flee/VB
stocks/NNS
and/CC
buy/VB
high-quality/JJ
Treasury/NNP
bonds/NNS
,/,
which/WDT
are/VBP
safer/JJR
than/IN
other/JJ
types/NNS
of/IN
securities/NNS
./.
But/CC
when/WRB
stocks/NNS
began/VBD
to/TO
climb/VB
instead/RB
,/,
prices/NNS
of/IN
Treasury/NNP
bonds/NNS
declined/VBD
./.
Contributing/VBG
to/TO
the/DT
selling/NN
pressure/NN
were/VBD
dispatches/NNS
by/IN
several/JJ
investment/NN
firms/NNS
advising/VBG
clients/NNS
to/TO
boost/VB
their/PRP$
stock/NN
holdings/NNS
and/CC
reduce/VB
the/DT
size/NN
of/IN
their/PRP$
cash/NN
or/CC
bond/NN
portfolios/NNS
./.
Among/IN
the/DT
firms/NNS
were/VBD
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
and/CC
Dean/NNP
Witter/NNP
Reynolds/NNP
Inc/NNP
./.
The/DT
bond/NN
market/NN
seemed/VBD
to/TO
ignore/VB
evidence/NN
that/IN
the/DT
Federal/NNP
Reserve/NNP
eased/VBD
credit/NN
conditions/NNS
slightly/RB
by/IN
allowing/VBG
the/DT
federal/JJ
funds/NNS
rate/NN
to/TO
drift/VB
as/RB
low/JJ
as/IN
8/CD
1\/2/CD
%/NN
./.
The/DT
closely/RB
watched/VBN
rate/NN
on/IN
federal/JJ
funds/NNS
,/,
or/CC
overnight/JJ
loans/NNS
between/IN
banks/NNS
,/,
slid/VBD
to/TO
about/RB
8/CD
3\/4/CD
%/NN
last/JJ
week/NN
,/,
down/RB
from/IN
its/PRP$
perceived/VBN
target/NN
level/NN
of/IN
about/RB
9/CD
%/NN
./.
The/DT
rate/NN
is/VBZ
considered/VBN
an/DT
early/JJ
signal/NN
of/IN
changes/NNS
in/IN
Fed/NNP
policy/NN
./.
Traders/NNS
said/VBD
yesterday/NN
's/POS
modest/JJ
easing/NN
did/VBD
n't/RB
stir/VB
much/JJ
enthusiasm/NN
because/IN
it/PRP
had/VBD
been/VBN
widely/RB
expected/VBN
./.
In/IN
fact/NN
,/,
some/DT
economists/NNS
contend/VBP
that/IN
the/DT
latest/JJS
easing/NN
started/VBD
last/JJ
week/NN
./.
Others/NNS
note/VBP
that/IN
some/DT
investors/NNS
were/VBD
disappointed/VBN
because/IN
they/PRP
had/VBD
expected/VBN
a/DT
more/RBR
aggressive/JJ
easing/NN
./.
The/DT
Treasury/NNP
's/POS
benchmark/NN
30-year/JJ
bond/NN
,/,
ended/VBD
about/RB
1/CD
3\/4/CD
points/NNS
lower/RBR
,/,
or/CC
down/RB
about/RB
$/$
17.50/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
./.
The/DT
reversal/NN
was/VBD
even/RB
more/RBR
evident/JJ
among/IN
shorter-term/JJ
Treasury/NNP
securities/NNS
./.
After/IN
Treasury/NNP
bill/NN
rates/NNS
plummeted/VBD
as/RB
much/RB
as/IN
0.70/CD
percentage/NN
point/NN
on/IN
Friday/NNP
,/,
they/PRP
gave/VBD
back/RB
three-fourths/JJ
of/IN
that/DT
amount/NN
yesterday/NN
./.
The/DT
bond-equivalent/JJ
yield/NN
on/IN
three-month/JJ
Treasury/NNP
bills/NNS
,/,
for/IN
example/NN
,/,
was/VBD
quoted/VBN
late/JJ
yesterday/NN
at/IN
7.72/CD
%/NN
,/,
compared/VBN
with/IN
7.16/CD
%/NN
Friday/NNP
./.
Investment-grade/JJ
corporate/JJ
bonds/NNS
,/,
mortgage-backed/JJ
securities/NNS
and/CC
municipal/JJ
bonds/NNS
also/RB
fell/VBD
./.
But/CC
prices/NNS
of/IN
junk/NN
bonds/NNS
,/,
which/WDT
were/VBD
battered/VBN
Friday/NNP
in/IN
near/JJ
standstill/JJ
trading/NN
,/,
rebounded/VBD
to/TO
post/VB
small/JJ
gains/NNS
after/IN
a/DT
volatile/JJ
trading/NN
session/NN
./.
Junk/NN
bonds/NNS
opened/VBD
as/RB
much/RB
as/IN
four/CD
points/NNS
lower/RBR
but/CC
staged/VBD
a/DT
modest/JJ
comeback/NN
as/IN
stock/NN
prices/NNS
firmed/VBD
./.
Some/DT
traders/NNS
said/VBD
the/DT
high-yield/JJ
market/NN
was/VBD
helped/VBN
by/IN
active/JJ
institutional/JJ
buying/NN
./.
In/IN
particular/JJ
,/,
they/PRP
said/VBD
,/,
firms/NNS
such/JJ
as/IN
First/NNP
Boston/NNP
Corp./NNP
and/CC
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
began/VBD
making/VBG
a/DT
market/NN
in/IN
junk/NN
issues/NNS
early/RB
in/IN
the/DT
session/NN
when/WRB
prices/NNS
hit/VBD
severely/RB
depressed/VBN
levels/NNS
./.
``/``
I/PRP
think/VBP
the/DT
willingness/NN
of/IN
securities/NNS
companies/NNS
to/TO
make/VB
markets/NNS
for/IN
high-yield/JJ
issues/NNS
improved/VBD
the/DT
sentiment/NN
for/IN
junk/NN
bonds/NNS
,/,
''/''
said/VBD
John/NNP
Lonski/NNP
,/,
an/DT
economist/NN
at/IN
Moody/NNP
's/POS
Investors/NNP
Service/NNP
Inc/NNP
./.
U.S./NNP
Treasury/NNP
bonds/NNS
were/VBD
higher/JJR
in/IN
overnight/JJ
trading/NN
in/IN
Japan/NNP
,/,
which/WDT
opened/VBD
at/IN
about/RB
7:30/CD
p.m./NN
EDT/NNP
./.
The/DT
benchmark/NN
30-year/JJ
bond/NN
,/,
for/IN
example/NN
rose/VBD
one/CD
point/NN
in/IN
early/JJ
Japanese/JJ
trading/NN
in/IN
reaction/NN
to/TO
a/DT
quick/JJ
600-point/JJ
drop/NN
in/IN
the/DT
Tokyo/NNP
stock/NN
market/NN
./.
But/CC
as/IN
Japanese/JJ
stocks/NNS
rebounded/VBD
,/,
Treasurys/NNPS
retreated/VBD
and/CC
ended/VBD
just/RB
modestly/RB
higher/RBR
./.
Many/JJ
U.S./NNP
trading/NN
operations/NNS
,/,
wanting/VBG
to/TO
keep/VB
a/DT
watchful/JJ
eye/NN
on/IN
Japanese/JJ
trading/NN
as/IN
an/DT
indication/NN
of/IN
where/WRB
U.S./NNP
trading/NN
would/MD
begin/VB
,/,
were/VBD
fully/RB
staffed/VBN
during/IN
the/DT
Tokyo/NNP
trading/NN
session/NN
./.
``/``
Most/JJS
of/IN
the/DT
action/NN
was/VBD
during/IN
the/DT
night/NN
session/NN
,/,
''/''
said/VBD
Michael/NNP
Moore/NNP
,/,
trading/NN
manager/NN
at/IN
Continental/NNP
Bank/NNP
./.
Jay/NNP
Goldinger/NNP
,/,
who/WP
often/RB
trades/VBZ
overnight/RB
for/IN
Capital/NNP
Insight/NNP
Inc./NNP
,/,
Beverly/NNP
Hills/NNP
,/,
Calif./NNP
,/,
said/VBD
trading/NN
in/IN
Tokyo/NNP
was/VBD
``/``
very/RB
active/JJ
''/''
but/CC
highly/RB
volatile/JJ
./.
``/``
We/PRP
went/VBD
down/RB
3\/4/CD
point/NN
in/IN
10/CD
minutes/NNS
right/RB
before/IN
lunch/NN
,/,
then/RB
after/IN
lunch/NN
we/PRP
went/VBD
up/RB
3\/4/CD
point/NN
in/IN
12/CD
minutes/NNS
,/,
''/''
he/PRP
said/VBD
./.
In/IN
Tokyo/NNP
,/,
trading/NN
is/VBZ
halted/VBN
during/IN
lunchtime/NN
./.
Tokyo/NNP
's/POS
market/NN
turned/VBD
out/RP
to/TO
be/VB
a/DT
bad/JJ
bellwether/NN
for/IN
U.S./NNP
trading/NN
./.
When/WRB
the/DT
market/NN
opened/VBD
here/RB
,/,
bonds/NNS
prices/NNS
fell/VBD
as/IN
the/DT
stock/NN
market/NN
regained/VBD
strength/NN
./.
The/DT
bond/NN
market/NN
's/POS
focus/NN
on/IN
stock/NN
activity/NN
was/VBD
so/RB
strong/JJ
yesterday/NN
that/IN
it/PRP
overshadowed/VBD
today/NN
's/POS
slate/NN
of/IN
economic/JJ
data/NNS
,/,
which/WDT
includes/VBZ
the/DT
government/NN
's/POS
report/NN
on/IN
August/NNP
U.S./NNP
merchandise/NN
trade/NN
and/CC
September/NNP
industrial/JJ
production/NN
./.
Industrial/JJ
production/NN
is/VBZ
expected/VBN
to/TO
have/VB
declined/VBN
0.2/CD
%/NN
,/,
according/VBG
to/TO
a/DT
consensus/NN
of/IN
economists/NNS
surveyed/VBN
by/IN
Dow/NNP
Jones/NNP
Capital/NNP
Markets/NNP
Report/NNP
./.
The/DT
August/NNP
trade/NN
deficit/NN
is/VBZ
expected/VBN
to/TO
have/VB
widened/VBN
to/TO
$/$
9.1/CD
billion/CD
from/IN
$/$
7.58/CD
billion/CD
in/IN
July/NNP
./.
A/DT
widening/NN
of/IN
that/DT
magnitude/NN
,/,
said/VBD
one/CD
New/NNP
York/NNP
trader/NN
,/,
is/VBZ
``/``
not/RB
a/DT
favorable/JJ
number/NN
.../:
./.
It/PRP
could/MD
do/VB
damage/NN
to/TO
us/PRP
./.
''/''
Meanwhile/RB
,/,
agency/NN
supply/NN
is/VBZ
expected/VBN
to/TO
weigh/VB
heavily/RB
on/IN
the/DT
market/NN
today/NN
when/WRB
the/DT
Federal/NNP
Home/NNP
Loan/NNP
Bank/NNP
prices/VBZ
a/DT
$/$
2.3/CD
billion/CD
offering/NN
of/IN
one-year/JJ
,/,
three-year/JJ
,/,
five-year/JJ
and/CC
10-year/JJ
maturities/NNS
./.
Tomorrow/NN
,/,
the/DT
Resolution/NNP
Funding/NNP
Corp./NNP
will/MD
provide/VB
details/NNS
of/IN
its/PRP$
first/JJ
bond/NN
issue/NN
,/,
which/WDT
is/VBZ
expected/VBN
to/TO
total/VB
between/IN
$/$
4/CD
billion/CD
and/CC
$/$
6/CD
billion/CD
and/CC
carry/VB
a/DT
maturity/NN
greater/JJR
than/IN
20/CD
years/NNS
./.
Resolution/NNP
Funding/NNP
is/VBZ
a/DT
division/NN
of/IN
Resolution/NNP
Trust/NNP
Corp./NNP
,/,
the/DT
new/JJ
federal/JJ
agency/NN
created/VBN
to/TO
bail/VB
out/RP
the/DT
nation/NN
's/POS
troubled/VBN
thrifts/NNS
./.
And/CC
this/DT
week/NN
the/DT
Tennessee/NNP
Valley/NNP
Authority/NNP
plans/VBZ
to/TO
price/VB
a/DT
$/$
3/CD
billion/CD
offering/NN
,/,
its/PRP$
first/JJ
public/NN
debt/NN
borrowing/NN
in/IN
15/CD
years/NNS
./.
``/``
There/EX
's/POS
lots/NNS
of/IN
supply/NN
,/,
''/''
the/DT
New/NNP
York/NNP
trader/NN
said/VBD
./.
``/``
We/PRP
have/VBP
a/DT
couple/NN
or/CC
three/CD
tough/JJ
weeks/NNS
coming/VBG
./.
''/''
Treasury/NNP
Securities/NNP
Prices/NNP
of/IN
Treasury/NNP
bonds/NNS
tumbled/VBD
in/IN
moderate/JJ
to/TO
active/JJ
trading/NN
./.
The/DT
benchmark/NN
30-year/JJ
Treasury/NNP
bond/NN
was/VBD
quoted/VBN
late/RB
at/IN
a/DT
price/NN
of/IN
101/CD
19\/32/CD
,/,
compared/VBN
with/IN
a/DT
closing/NN
price/NN
of/IN
103/CD
12\/32/CD
Friday/NNP
./.
The/DT
yield/NN
on/IN
the/DT
benchmark/NN
issue/NN
rose/VBD
to/TO
7.97/CD
%/NN
from/IN
7.82/CD
%/NN
./.
The/DT
latest/JJS
10-year/JJ
notes/NNS
were/VBD
quoted/VBN
late/RB
at/IN
100/CD
3\/32/CD
for/IN
a/DT
yield/NN
of/IN
7.97/CD
%/NN
,/,
compared/VBN
with/IN
101/CD
9\/32/CD
to/TO
yield/VB
7.84/CD
%/NN
./.
Short-term/JJ
interest/NN
rates/NNS
fell/VBD
yesterday/NN
at/IN
the/DT
government/NN
's/POS
weekly/JJ
Treasury/NNP
bill/NN
auction/NN
./.
The/DT
average/JJ
discount/NN
rate/NN
on/IN
new/JJ
three-month/JJ
Treasury/NNP
bills/NNS
was/VBD
7.37/CD
%/NN
,/,
the/DT
lowest/JJS
since/IN
the/DT
average/NN
of/IN
7.36/CD
%/NN
at/IN
the/DT
auction/NN
on/IN
Oct./NNP
17/CD
,/,
1988/CD
./.
The/DT
average/JJ
discount/NN
rate/NN
was/VBD
7.42/CD
%/NN
on/IN
new/JJ
six-month/JJ
bills/NNS
,/,
the/DT
lowest/JJS
since/IN
the/DT
average/NN
of/IN
7.35/CD
%/NN
at/IN
the/DT
auction/NN
on/IN
July/NNP
31/CD
,/,
1989/CD
./.
Here/RB
are/VBP
auction/NN
details/NNS
:/:
Rates/NNS
are/VBP
determined/VBN
by/IN
the/DT
difference/NN
between/IN
the/DT
purchase/NN
price/NN
and/CC
face/NN
value/NN
./.
Thus/RB
,/,
higher/JJR
bidding/NN
narrows/VBZ
the/DT
investor/NN
's/POS
return/NN
while/IN
lower/JJR
bidding/NN
widens/VBZ
it/PRP
./.
The/DT
percentage/NN
rates/NNS
are/VBP
calculated/VBN
on/IN
a/DT
360-day/JJ
year/NN
,/,
while/IN
the/DT
coupon-equivalent/JJ
yield/NN
is/VBZ
based/VBN
on/IN
a/DT
365-day/JJ
year/NN
./.
Both/DT
issues/NNS
are/VBP
dated/VBN
Oct./NNP
19/CD
./.
The/DT
13-week/JJ
bills/NNS
mature/VBP
Jan./NN
18/CD
,/,
1990/CD
,/,
and/CC
the/DT
26-week/JJ
bills/NNS
mature/VBP
April/NNP
19/CD
,/,
1990/CD
./.
Corporate/JJ
Issues/NNS
Investment-grade/JJ
corporate/JJ
bonds/NNS
ended/VBD
one/CD
to/TO
1/CD
1\/2/CD
point/NN
lower/RBR
./.
There/EX
were/VBD
no/DT
new/JJ
issues/NNS
./.
Foreign/JJ
Bonds/NNS
Foreign/JJ
bonds/NNS
surged/VBD
as/IN
the/DT
dollar/NN
weakened/VBD
against/IN
most/JJS
major/JJ
currencies/NNS
./.
Among/IN
benchmark/NN
issues/NNS
:/:
--/:
Japan/NNP
's/POS
No./NN
111/CD
4.6/CD
%/NN
bond/NN
due/JJ
1998/CD
ended/VBD
on/IN
brokers/NNS
screens/NNS
at/IN
96.15/CD
,/,
up/RB
1.17/CD
point/NN
./.
The/DT
yield/NN
was/VBD
5.245/CD
%/NN
./.
--/:
West/NNP
Germany/NNP
's/POS
6/CD
3\/4/CD
%/NN
issue/NN
due/JJ
June/NNP
1999/CD
ended/VBD
at/IN
98.30/CD
,/,
up/RB
0.91/CD
point/NN
to/TO
yield/VB
6.99/CD
%/NN
./.
--/:
Britain/NNP
's/POS
11/CD
3\/4/CD
%/NN
bond/NN
due/JJ
2003\/2007/CD
ended/VBD
1/CD
1\/8/CD
higher/RBR
at/IN
111/CD
19\/32/CD
to/TO
yield/VB
10.12/CD
%/NN
,/,
while/IN
the/DT
11/CD
3\/4/CD
%/NN
notes/NNS
due/JJ
1991/CD
rose/VBD
21\/32/CD
to/TO
98/CD
26\/32/CD
to/TO
yield/VB
12.74/CD
%/NN
./.
Mortgage-Backed/JJ
Securities/NNS
Mortgage/NN
securities/NNS
gave/VBD
up/RP
most/JJS
of/IN
Friday/NNP
's/POS
gains/NNS
as/IN
active/JJ
issues/NNS
ended/VBD
24\/32/CD
to/TO
30\/32/CD
point/NN
lower/RBR
./.
Dealers/NNS
said/VBD
morning/NN
activity/NN
was/VBD
hectic/JJ
as/IN
prices/NNS
dropped/VBD
in/IN
response/NN
to/TO
gains/NNS
in/IN
the/DT
stock/NN
market/NN
and/CC
losses/NNS
in/IN
Treasury/NNP
securities/NNS
,/,
but/CC
trading/NN
slowed/VBD
to/TO
moderate/JJ
levels/NNS
in/IN
the/DT
afternoon/NN
./.
Government/NNP
National/NNP
Mortgage/NNP
Association/NNP
9/CD
%/NN
securities/NNS
for/IN
November/NNP
delivery/NN
were/VBD
quoted/VBN
late/JJ
yesterday/NN
at/IN
98/CD
4\/32/CD
,/,
down/RB
30\/32/CD
from/IN
Friday/NNP
;/:
9/CD
1\/2/CD
%/NN
securities/NNS
were/VBD
down/RB
27\/32/CD
at/IN
100/CD
5\/32/CD
;/:
and/CC
10/CD
%/NN
securities/NNS
were/VBD
at/IN
102/CD
2\/32/CD
,/,
off/JJ
24\/32/CD
./.
Federal/NNP
Home/NNP
Loan/NNP
Mortgage/NNP
Corp./NNP
9/CD
%/NN
securities/NNS
were/VBD
at/IN
97/CD
1\/4/CD
,/,
down/RB
3\/4/CD
./.
On/IN
Friday/NNP
,/,
mortgage/NN
issues/NNS
gained/VBD
as/RB
much/RB
as/IN
1/CD
5\/32/CD
./.
Late/JJ
yesterday/NN
Ginnie/NNP
Mae/NNP
9/CD
%/NN
securities/NNS
were/VBD
yielding/VBG
9.39/CD
%/NN
to/TO
a/DT
12-year/JJ
average/NN
life/NN
assumption/NN
,/,
as/IN
the/DT
spread/NN
above/IN
the/DT
Treasury/NNP
10-year/JJ
note/NN
narrowed/VBD
0.01/CD
percentage/NN
point/NN
to/TO
1.42/CD
./.
Traders/NNS
said/VBD
there/EX
were/VBD
some/DT
busy/JJ
dealings/NNS
in/IN
Freddie/NNP
Mac/NNP
and/CC
Federal/NNP
National/NNP
Mortgage/NNP
Association/NNP
securities/NNS
because/IN
underwriters/NNS
from/IN
last/JJ
week/NN
's/POS
heavy/JJ
slate/NN
of/IN
real/JJ
estate/NN
mortgage/NN
investment/NN
conduit/NN
issues/NNS
moved/VBD
to/TO
gather/VB
collateral/NN
for/IN
new/JJ
deals/NNS
./.
Offsetting/VBG
the/DT
Remic-related/JJ
purchases/NNS
were/VBD
continued/VBN
heavy/JJ
sales/NNS
by/IN
mortgage/NN
originators/NNS
,/,
which/WDT
are/VBP
producing/VBG
increased/VBN
amounts/NNS
of/IN
fixed-rate/JJ
mortgage-backed/JJ
issues/NNS
with/IN
lower/JJR
rates/NNS
./.
There/EX
was/VBD
no/DT
new-issue/JJ
activity/NN
in/IN
the/DT
derivative/JJ
market/NN
./.
Municipals/NNS
Rebounding/VBG
stocks/NNS
and/CC
weaker/JJR
Treasury/NNP
prices/NNS
drove/VBD
municipal/JJ
bonds/NNS
1\/4/CD
to/TO
3\/4/CD
point/NN
lower/RBR
in/IN
late/JJ
dealings/NNS
./.
The/DT
session/NN
losses/NNS
left/VBD
municipal/JJ
dollar/NN
bonds/NNS
close/JJ
to/TO
where/WRB
they/PRP
were/VBD
before/IN
the/DT
190.58-point/JJ
drop/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
Friday/NNP
prompted/VBD
a/DT
capital/NN
markets/NNS
rally/NN
./.
Trading/NN
was/VBD
hectic/JJ
during/IN
the/DT
morning/NN
,/,
with/IN
players/NNS
trying/VBG
to/TO
gauge/VB
whether/IN
equities/NNS
would/MD
continue/VB
Friday/NNP
's/POS
free/JJ
fall/NN
or/CC
stabilize/VB
after/IN
a/DT
brief/JJ
spot/NN
of/IN
weakness/NN
./.
Tax-exempts/NNS
started/VBD
the/DT
session/NN
flat/JJ
to/TO
a/DT
touch/NN
higher/RBR
on/IN
anticipation/NN
of/IN
further/JJ
stock/NN
market/NN
erosion/NN
,/,
but/CC
bond/NN
prices/NNS
rapidly/RB
turned/VBD
south/JJ
as/IN
it/PRP
became/VBD
more/RBR
clear/JJ
that/IN
a/DT
repeat/NN
of/IN
the/DT
October/NNP
1987/CD
crash/NN
was/VBD
n't/RB
at/IN
hand/NN
./.
Professionals/NNS
dominated/VBD
municipal/JJ
trading/NN
throughout/IN
the/DT
session/NN
./.
Traders/NNS
said/VBD
retail/JJ
investors/NNS
seemed/VBD
to/TO
be/VB
hugging/VBG
the/DT
sidelines/NNS
until/IN
a/DT
measure/NN
of/IN
volatility/NN
is/VBZ
wrung/VB
out/RB
of/IN
the/DT
market/NN
./.
New/NNP
Jersey/NNP
Turnpike/NNP
Authority/NNP
's/POS
7.20/CD
%/NN
issue/NN
of/IN
2018/CD
was/VBD
off/JJ
3\/4/CD
at/IN
98/CD
1\/2/CD
bid/NN
,/,
yielding/VBG
7.32/CD
%/NN
,/,
up/RB
0.07/CD
percentage/NN
point/NN
from/IN
late/JJ
Friday/NNP
./.
Florida/NNP
Board/NNP
of/IN
Education/NNP
's/POS
7/CD
1\/4/CD
%/NN
issue/NN
of/IN
2023/CD
was/VBD
5\/8/CD
point/NN
weaker/JJR
at/IN
99/CD
1\/2/CD
bid/NN
./.
The/DT
7/CD
1\/8/CD
%/NN
issue/NN
of/IN
Triborough/NNP
Bridge/NNP
and/CC
Tunnel/NNP
Authority/NNP
of/IN
New/NNP
York/NNP
,/,
due/JJ
2019/CD
,/,
was/VBD
off/JJ
5\/8/CD
at/IN
98/CD
1\/8/CD
bid/NN
./.
And/CC
Fairfax/NNP
County/NNP
,/,
Va./NNP
,/,
Water/NNP
Authority/NNP
's/POS
7/CD
1\/4/CD
%/NN
issue/NN
of/IN
2027/CD
was/VBD
down/RB
3\/4/CD
at/IN
99/CD
7\/8/CD
bid/NN
./.
Serial/JJ
bond/NN
yields/NNS
were/VBD
up/RB
about/RB
0.05/CD
percentage/NN
point/NN
./.
BMA/NNP
Corp./NNP
,/,
Kansas/NNP
City/NNP
,/,
Mo./NNP
,/,
said/VBD
it/PRP
's/VBZ
weighing/VBG
``/``
strategic/JJ
alternatives/NNS
,/,
''/''
for/IN
its/PRP$
Business/NNP
Men/NNP
's/POS
Assurance/NNP
Co./NNP
unit/NN
,/,
and/CC
is/VBZ
contacting/VBG
possible/JJ
buyers/NNS
of/IN
the/DT
life/NN
and/CC
health/NN
insurance/NN
operation/NN
./.
A/DT
BMA/NNP
spokesman/NN
said/VBD
``/``
runaway/JJ
medical/JJ
costs/NNS
''/''
have/VBP
made/VBN
health/NN
insurance/NN
``/``
a/DT
significant/JJ
challenge/NN
,/,
''/''
and/CC
margins/NNS
also/RB
have/VBP
been/VBN
pinched/VBN
by/IN
changes/NNS
in/IN
the/DT
mix/NN
of/IN
life-insurance/JJ
products/NNS
consumers/NNS
now/RB
demand/VBP
./.
The/DT
Business/NNP
Men/NNP
's/POS
Assurance/NNP
unit/NN
represented/VBD
about/RB
$/$
288/CD
million/CD
of/IN
the/DT
company/NN
's/POS
$/$
488/CD
million/CD
in/IN
1988/CD
revenue/NN
,/,
and/CC
the/DT
unit/NN
's/POS
operating/VBG
income/NN
was/VBD
about/RB
$/$
10/CD
million/CD
,/,
said/VBD
the/DT
spokesman/NN
./.
BMA/NNP
's/POS
investment/NN
banker/NN
,/,
Alex/NNP
./.
Brown/NNP
&/CC
Sons/NNP
Inc./NNP
,/,
has/VBZ
been/VBN
authorized/VBN
to/TO
contact/VB
possible/JJ
buyers/NNS
for/IN
the/DT
unit/NN
./.
Laidlaw/NNP
Transportation/NNP
Ltd./NNP
said/VBD
it/PRP
raised/VBD
its/PRP$
stake/NN
in/IN
ADT/NNP
Ltd./NNP
of/IN
Bermuda/NNP
to/TO
29.4/CD
%/NN
from/IN
28/CD
%/NN
./.
A/DT
spokesman/NN
for/IN
Laidlaw/NNP
declined/VBD
to/TO
disclose/VB
the/DT
price/NN
the/DT
Toronto/NNP
transportation/NN
and/CC
waste/NN
services/NNS
concern/NN
paid/VBD
for/IN
the/DT
additional/JJ
shares/NNS
,/,
which/WDT
he/PRP
said/VBD
were/VBD
acquired/VBD
``/``
over/IN
the/DT
last/JJ
couple/NN
of/IN
weeks/NNS
./.
''/''
The/DT
spokesman/NN
said/VBD
Laidlaw/NNP
would/MD
n't/RB
increase/VB
its/PRP$
stake/NN
in/IN
ADT/NNP
beyond/IN
30/CD
%/NN
``/``
without/IN
a/DT
great/JJ
deal/NN
of/IN
thought/NN
''/''
because/IN
of/IN
British/JJ
takeover/NN
regulations/NNS
that/WDT
require/VBP
a/DT
company/NN
acquiring/VBG
more/JJR
than/IN
30/CD
%/NN
to/TO
extend/VB
an/DT
offer/NN
to/TO
the/DT
rest/NN
of/IN
the/DT
company/NN
's/POS
shareholders/NNS
./.
ADT/NNP
,/,
a/DT
security/NN
services/NNS
and/CC
auctions/NNS
company/NN
,/,
trades/VBZ
on/IN
London/NNP
's/POS
Stock/NNP
Exchange/NNP
./.
Laidlaw/NNP
is/VBZ
47%-controlled/CD
by/IN
Canadian/NNP
Pacific/NNP
Ltd./NNP
,/,
a/DT
Montreal/NNP
transportation/NN
,/,
resources/NNS
and/CC
industrial/JJ
holding/VBG
concern/NN
./.
Nintendo/NNP
Co./NNP
,/,
a/DT
Japanese/JJ
maker/NN
of/IN
video/JJ
games/NNS
,/,
electronic/JJ
information/NN
systems/NNS
and/CC
playing/NN
cards/NNS
,/,
posted/VBD
a/DT
23/CD
%/NN
unconsolidated/VBD
surge/NN
in/IN
pretax/JJ
profit/NN
to/TO
61.41/CD
billion/CD
yen/NNS
$/$
429/CD
million/CD
50/CD
billion/CD
yen/NNS
$/$
349.9/CD
million/CD
the/DT
fiscal/JJ
year/NN
ended/VBN
Aug./NNP
31/CD
./.
Sales/NNS
surged/VBD
40/CD
%/NN
to/TO
250.17/CD
billion/CD
yen/NNS
from/IN
178.61/CD
billion/CD
./.
Net/JJ
income/NN
rose/VBD
11/CD
%/NN
to/TO
29.62/CD
billion/CD
yen/NNS
from/IN
26.68/CD
billion/CD
./.
Pershare/JJ
net/JJ
fell/VBD
to/TO
423.3/CD
yen/NNS
from/IN
457.7/CD
yen/NNS
because/IN
of/IN
expenses/NNS
and/CC
capital/NN
adjustments/NNS
./.
Without/IN
detailing/VBG
specific/JJ
product/NN
breakdowns/NNS
,/,
Nintendo/NNP
credited/VBD
its/PRP$
bullish/JJ
upsurge/NN
in/IN
sales/NNS
--/:
including/VBG
advanced/VBN
computer/NN
games/NNS
and/CC
television/NN
entertainment/NN
systems/NNS
--/:
to/TO
surging/JJ
``/``
leisure-oriented/JJ
''/''
sales/NNS
in/IN
foreign/JJ
markets/NNS
./.
Export/NN
sales/NNS
for/IN
leisure/NN
items/NNS
alone/RB
,/,
for/IN
instance/NN
,/,
totaled/VBD
184.74/CD
billion/CD
yen/NNS
in/IN
the/DT
12/CD
months/NNS
,/,
up/RB
from/IN
106.06/CD
billion/CD
in/IN
the/DT
previous/JJ
fiscal/JJ
year/NN
./.
Domestic/JJ
leisure/NN
sales/NNS
,/,
however/RB
,/,
were/VBD
lower/JJR
./.
Hertz/NNP
Corp./NNP
of/IN
Park/NNP
Ridge/NNP
,/,
N.J./NNP
,/,
said/VBD
it/PRP
retained/VBD
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
to/TO
sell/VB
its/PRP$
Hertz/NNP
Equipment/NNP
Rental/NNP
Corp./NNP
unit/NN
./.
``/``
There/EX
is/VBZ
no/DT
pressing/VBG
need/NN
to/TO
sell/VB
the/DT
unit/NN
,/,
but/CC
we/PRP
are/VBP
doing/VBG
it/PRP
so/IN
we/PRP
can/MD
concentrate/VB
on/IN
our/PRP$
core/NN
business/NN
,/,
renting/VBG
automobiles/NNS
in/IN
the/DT
U.S./NNP
and/CC
abroad/RB
,/,
''/''
said/VBD
William/NNP
Slider/NNP
,/,
Hertz/NNP
's/POS
executive/JJ
vice/NN
president/NN
./.
``/``
We/PRP
are/VBP
only/RB
going/VBG
to/TO
sell/VB
at/IN
the/DT
right/JJ
price/NN
./.
''/''
Hertz/NNP
Equipment/NNP
had/VBD
operating/NN
profit/NN
before/IN
depreciation/NN
of/IN
$/$
90/CD
million/CD
on/IN
revenue/NN
of/IN
$/$
150/CD
million/CD
in/IN
1988/CD
./.
The/DT
closely/RB
held/VBN
Hertz/NNP
Corp./NNP
had/VBD
annual/JJ
revenue/NN
of/IN
close/JJ
to/TO
$/$
2/CD
billion/CD
in/IN
1988/CD
,/,
of/IN
which/WDT
$/$
1.7/CD
billion/CD
was/VBD
contributed/VBN
by/IN
its/PRP$
Hertz/NNP
Rent/NNP
A/DT
Car/NNP
operations/NNS
world-wide/JJ
./.
Hertz/NNP
Equipment/NNP
is/VBZ
a/DT
major/JJ
supplier/NN
of/IN
rental/JJ
equipment/NN
in/IN
the/DT
U.S./NNP
,/,
France/NNP
,/,
Spain/NNP
and/CC
the/DT
U.K/NNP
./.
It/PRP
supplies/VBZ
commercial/JJ
and/CC
industrial/JJ
equipment/NN
including/VBG
earth-moving/JJ
,/,
aerial/JJ
,/,
compaction/NN
and/CC
electrical/JJ
equipment/NN
,/,
compressors/NNS
,/,
cranes/NNS
,/,
forklifts/NNS
and/CC
trucks/NNS
./.
Interspec/NNP
Inc./NNP
reported/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
2.4/CD
million/CD
for/IN
the/DT
fiscal/JJ
third/JJ
quarter/NN
ended/VBN
Aug./NNP
31/CD
./.
It/PRP
said/VBD
the/DT
loss/NN
resulted/VBD
from/IN
startup/NN
and/CC
introduction/NN
costs/NNS
related/VBN
to/TO
a/DT
new/JJ
medical/JJ
ultrasound/NN
equipment/NN
system/NN
./.
In/IN
the/DT
year-earlier/JJ
quarter/NN
,/,
the/DT
company/NN
reported/VBD
net/JJ
income/NN
of/IN
$/$
955,000/CD
,/,
or/CC
15/CD
cents/NNS
a/DT
share/NN
./.
The/DT
manufacturer/NN
of/IN
ultrasound/NN
diagnostic/JJ
systems/NNS
,/,
based/VBN
in/IN
Ambler/NNP
,/,
Pa./NNP
,/,
reported/VBD
a/DT
nine-month/JJ
net/JJ
loss/NN
of/IN
$/$
2.43/CD
million/CD
compared/VBN
with/IN
net/JJ
income/NN
of/IN
$/$
2.71/CD
million/CD
,/,
or/CC
44/CD
cents/NNS
a/DT
share/NN
,/,
for/IN
the/DT
nine-month/JJ
period/NN
a/DT
year/NN
earlier/RBR
./.
In/IN
over-the-counter/JJ
trading/NN
,/,
Interspec/NNP
fell/VBD
37.5/CD
cents/NNS
to/TO
$/$
4.25/CD
./.
Allegheny/NNP
Ludlum/NNP
Corp./NNP
expects/VBZ
to/TO
report/VB
third-quarter/JJ
net/JJ
of/IN
about/RB
$/$
34/CD
million/CD
,/,
or/CC
$/$
1.50/CD
a/DT
share/NN
,/,
down/RB
from/IN
$/$
38.4/CD
million/CD
,/,
or/CC
$/$
1.70/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RB
,/,
Richard/NNP
P./NNP
Simmons/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
told/VBD
institutional/JJ
investors/NNS
in/IN
New/NNP
York/NNP
./.
Sales/NNS
for/IN
the/DT
Pittsburgh-based/JJ
producer/NN
of/IN
specialty/NN
steels/NNS
and/CC
other/JJ
materials/NNS
fell/VBD
to/TO
about/RB
$/$
265/CD
million/CD
in/IN
the/DT
third/JJ
quarter/NN
from/IN
$/$
320.5/CD
million/CD
a/DT
year/NN
earlier/RBR
,/,
he/PRP
said/VBD
./.
He/PRP
said/VBD
the/DT
third-quarter/JJ
estimate/NN
indicates/VBZ
profit/NN
for/IN
the/DT
nine/CD
months/NNS
of/IN
$/$
4.65/CD
a/DT
share/NN
,/,
``/``
almost/RB
equal/JJ
to/TO
the/DT
full-year/JJ
1988/CD
earnings/NNS
''/''
of/IN
$/$
108.6/CD
million/CD
,/,
or/CC
$/$
4.81/CD
a/DT
share/NN
./.
In/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
1988/CD
,/,
net/JJ
was/VBD
$/$
85/CD
million/CD
,/,
or/CC
$/$
3.76/CD
a/DT
share/NN
./.
Mr./NNP
Simmons/NNP
said/VBD
the/DT
third-quarter/JJ
results/NNS
reflect/VBP
continued/VBN
improvements/NNS
in/IN
productivity/NN
and/CC
operating/NN
margins/NNS
./.
He/PRP
said/VBD
capital/NN
spending/NN
next/JJ
year/NN
will/MD
rise/VB
to/TO
about/RB
$/$
45/CD
million/CD
from/IN
about/RB
$/$
35/CD
million/CD
this/DT
year/NN
./.
U.S./NNP
Banknote/NNP
Co./NNP
said/VBD
it/PRP
again/RB
extended/VBD
the/DT
expiration/NN
date/NN
of/IN
its/PRP$
$/$
7-a-share/JJ
tender/NN
offer/NN
for/IN
International/NNP
Banknote/NNP
Co./NNP
to/TO
Nov./VB
15/CD
./.
U.S./NNP
Banknote/NNP
said/VBD
it/PRP
is/VBZ
in/IN
negotiations/NNS
to/TO
sell/VB
``/``
certain/JJ
facilities/NNS
,/,
''/''
which/WDT
it/PRP
did/VBD
n't/RB
name/VB
,/,
to/TO
a/DT
third/JJ
party/NN
,/,
and/CC
it/PRP
needs/VBZ
the/DT
extension/NN
to/TO
try/VB
to/TO
reach/VB
a/DT
definitive/JJ
agreement/NN
on/IN
the/DT
sale/NN
./.
U.S./NNP
Banknote/NNP
said/VBD
it/PRP
believes/VBZ
the/DT
sale/NN
,/,
if/IN
completed/VBN
,/,
apparently/RB
would/MD
satisfy/VB
antitrust/JJ
issues/NNS
raised/VBN
by/IN
the/DT
U.S./NNP
Justice/NNP
Department/NNP
about/IN
U.S./NNP
Banknote/NNP
's/POS
offer/NN
to/TO
buy/VB
International/NNP
Banknote/NNP
./.
Both/DT
of/IN
the/DT
New/NNP
York-based/JJ
companies/NNS
print/VBP
stock/NN
certificates/NNS
and/CC
currency/NN
./.
U.S./NNP
Banknote/NNP
said/VBD
``/``
there/EX
can/MD
be/VB
no/DT
assurance/NN
''/''
a/DT
sale/NN
agreement/NN
would/MD
be/VB
concluded/VBN
./.
It/PRP
also/RB
said/VBD
the/DT
tender/NN
offer/NN
would/MD
probably/RB
have/VB
to/TO
be/VB
extended/VBN
further/RBR
to/TO
complete/VB
financing/NN
arrangements/NNS
./.
U.S./NNP
Banknote/NNP
said/VBD
Citibank/NNP
extended/VBD
the/DT
expiration/NN
date/NN
of/IN
its/PRP$
commitment/NN
for/IN
senior/JJ
secured/VBN
financing/NN
to/TO
Nov./NNP
15/CD
./.
The/DT
offer/NN
,/,
made/VBD
June/NNP
1/CD
,/,
has/VBZ
been/VBN
extended/VBN
several/JJ
times/NNS
./.
Closely/RB
held/VBN
U.S./NNP
Banknote/NNP
offered/VBD
the/DT
$/$
7/CD
a/DT
share/NN
,/,
or/CC
$/$
126/CD
million/CD
,/,
for/IN
as/RB
many/JJ
as/IN
14.9/CD
million/CD
shares/NNS
,/,
or/CC
78.6/CD
%/NN
,/,
of/IN
International/NNP
Banknote/NNP
's/POS
shares/NNS
outstanding/JJ
./.
U.S./NNP
Banknote/NNP
said/VBD
that/IN
as/IN
of/IN
Oct./NNP
13/CD
,/,
16.1/CD
million/CD
shares/NNS
,/,
or/CC
about/RB
84.3/CD
%/NN
of/IN
the/DT
fully/RB
diluted/VBN
shares/NNS
outstanding/JJ
,/,
had/VBD
been/VBN
tendered/VBN
./.
Gitano/NNP
Group/NNP
Inc./NNP
said/VBD
it/PRP
agreed/VBD
to/TO
buy/VB
50/CD
%/NN
of/IN
Regatta/NNP
Sport/NNP
Ltd./NNP
,/,
a/DT
closely/RB
held/VBN
apparel/NN
maker/NN
,/,
with/IN
the/DT
assumption/NN
of/IN
$/$
3/CD
million/CD
of/IN
contingent/JJ
debt/NN
./.
Under/IN
the/DT
terms/NNS
of/IN
the/DT
contract/NN
,/,
New/NNP
York-based/JJ
Gitano/NNP
has/VBZ
the/DT
option/NN
to/TO
acquire/VB
the/DT
remaining/JJ
50/CD
%/NN
of/IN
Regatta/NNP
,/,
a/DT
maker/NN
of/IN
men/NNS
's/POS
and/CC
women/NNS
's/POS
clothes/NNS
sold/VBN
primarily/RB
in/IN
department/NN
stores/NNS
,/,
under/IN
certain/JJ
conditions/NNS
./.
That/DT
50/CD
%/NN
is/VBZ
now/RB
held/VBN
by/IN
Clifford/NNP
Parker/NNP
,/,
Regatta/NNP
's/POS
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
who/WP
will/MD
continue/VB
to/TO
manage/VB
Regatta/NNP
's/POS
operations/NNS
under/IN
Gitano/NNP
./.
In/IN
1989/CD
,/,
Regatta/NNP
will/MD
have/VB
sales/NNS
``/``
in/IN
excess/NN
of/IN
$/$
10/CD
million/CD
''/''
and/CC
will/MD
show/VB
a/DT
profit/NN
,/,
Mr./NNP
Parker/NNP
said/VBD
./.
Gitano/NNP
,/,
which/WDT
makes/VBZ
budget-priced/JJ
apparel/NN
sold/VBN
mainly/RB
through/IN
mass/NN
merchandisers/NNS
like/IN
K/NNP
mart/NNP
and/CC
Wal-Mart/NNP
,/,
said/VBD
the/DT
Regatta/NNP
acquisition/NN
will/MD
enhance/VB
its/PRP$
strategy/NN
to/TO
expand/VB
into/IN
department/NN
stores/NNS
./.
This/DT
fall/NN
,/,
Gitano/NNP
began/VBD
manufacturing/VBG
moderately/RB
priced/VBN
clothes/NNS
aimed/VBN
at/IN
department/NN
stores/NNS
under/IN
the/DT
Gloria/NNP
Vanderbilt/NNP
trademark/NN
,/,
which/WDT
Gitano/NNP
recently/RB
acquired/VBD
./.
Enron/NNP
Corp./NNP
,/,
Houston/NNP
,/,
said/VBD
the/DT
sale/NN
of/IN
preference/NN
units/NNS
of/IN
its/PRP$
newly/RB
formed/VBN
Enron/NNP
NGL/NNP
Partners/NNP
L.P./NNP
master/NN
limited/VBN
partnership/NN
subsidiary/NN
will/MD
result/VB
in/IN
an/DT
undetermined/JJ
gain/NN
in/IN
the/DT
fourth/JJ
quarter/NN
./.
In/IN
the/DT
year-ago/JJ
quarter/NN
,/,
the/DT
natural/JJ
gas/NN
concern/NN
had/VBD
net/JJ
income/NN
of/IN
$/$
25.2/CD
million/CD
,/,
or/CC
34/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
about/RB
$/$
1.46/CD
billion/CD
./.
Those/DT
results/NNS
included/VBD
a/DT
$/$
2.7/CD
million/CD
charge/NN
related/VBN
to/TO
the/DT
retirement/NN
of/IN
debt/NN
./.
In/IN
a/DT
related/VBN
move/NN
,/,
Enron/NNP
said/VBD
it/PRP
increased/VBD
the/DT
number/NN
of/IN
the/DT
partnership/NN
's/POS
units/NNS
it/PRP
will/MD
offer/VB
to/TO
6,930,000/CD
from/IN
5,500,000/CD
./.
The/DT
old/JJ
and/CC
revised/VBN
numbers/NNS
both/DT
include/VBP
over-allotment/JJ
provisions/NNS
./.
Enron/NNP
said/VBD
each/DT
unit/NN
will/MD
be/VB
priced/VBN
in/IN
the/DT
$/$
19-to-$21/JJ
range/NN
and/CC
will/MD
represent/VB
about/RB
80/CD
%/NN
of/IN
the/DT
partnership/NN
equity/NN
./.
Net/JJ
proceeds/NNS
from/IN
the/DT
offering/NN
are/VBP
expected/VBN
to/TO
be/VB
close/JJ
to/TO
$/$
200/CD
million/CD
./.
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
,/,
and/CC
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
are/VBP
lead/JJ
underwriters/NNS
./.
Arthur/NNP
M./NNP
Goldberg/NNP
said/VBD
he/PRP
extended/VBD
his/PRP$
unsolicited/JJ
tender/NN
offer/NN
of/IN
$/$
32/CD
a/DT
share/NN
tender/NN
offer/NN
,/,
or/CC
$/$
154.3/CD
million/CD
,/,
for/IN
Di/NNP
Giorgio/NNP
Corp./NNP
to/TO
Nov./NNP
1/CD
./.
DIG/NNP
Acquisition/NNP
Corp./NNP
,/,
the/DT
New/NNP
Jersey/NNP
investor/NN
's/POS
acquisition/NN
vehicle/NN
,/,
said/VBD
that/IN
as/IN
of/IN
the/DT
close/NN
of/IN
business/NN
yesterday/NN
,/,
560,839/CD
shares/NNS
had/VBD
been/VBN
tendered/VBN
./.
Including/VBG
the/DT
stake/NN
DIG/NNP
already/RB
held/VBD
,/,
DIG/NNP
holds/VBZ
a/DT
total/NN
of/IN
about/RB
25/CD
%/NN
of/IN
Di/NNP
Giorgio/NNP
's/POS
shares/NNS
on/IN
a/DT
fully/RB
diluted/VBN
basis/NN
./.
The/DT
offer/NN
,/,
which/WDT
also/RB
includes/VBZ
common/JJ
and/CC
preferred/VBN
stock/NN
purchase/NN
rights/NNS
,/,
was/VBD
to/TO
expire/VB
last/JJ
night/NN
at/IN
midnight/NN
./.
The/DT
new/JJ
expiration/NN
date/NN
is/VBZ
the/DT
date/NN
on/IN
which/WDT
DIG/NNP
's/POS
financing/VBG
commitments/NNS
,/,
which/WDT
total/VBP
about/RB
$/$
240/CD
million/CD
,/,
are/VBP
to/TO
expire/VB
./.
DIG/NNP
is/VBZ
a/DT
unit/NN
of/IN
DIG/NNP
Holding/NNP
Corp./NNP
,/,
a/DT
unit/NN
of/IN
Rose/NNP
Partners/NNP
L.P/NNP
./.
Mr./NNP
Goldberg/NNP
is/VBZ
the/DT
sole/JJ
general/JJ
partner/NN
in/IN
Rose/NNP
Partners/NNP
./.
In/IN
August/NNP
,/,
Di/NNP
Giorgio/NNP
,/,
a/DT
San/NNP
Francisco/NNP
food/NN
products/NNS
and/CC
building/NN
materials/NNS
marketing/NN
and/CC
distribution/NN
company/NN
,/,
rejected/VBD
Mr./NNP
Goldberg/NNP
's/POS
offer/NN
as/IN
inadequate/JJ
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/NN
trading/NN
yesterday/NN
,/,
Di/NNP
Giorgio/NNP
closed/VBD
at/IN
$/$
31.50/CD
a/DT
share/NN
,/,
down/RB
$/$
1.75/CD
./.
What/WP
does/VBZ
n't/RB
belong/VB
here/RB
?/.
A./LS
manual/JJ
typewriters/NNS
,/,
B./LS
black-and-white/JJ
snapshots/NNS
,/,
C./LS
radio/NN
adventure/NN
shows/NNS
./.
If/IN
you/PRP
guessed/VBD
black-and-white/JJ
snapshots/NNS
,/,
you/PRP
're/VBP
right/JJ
./.
After/IN
years/NNS
of/IN
fading/NN
into/IN
the/DT
background/NN
,/,
two-tone/JJ
photography/NN
is/VBZ
coming/VBG
back/RB
./.
Trendy/JJ
magazine/NN
advertisements/NNS
feature/VBP
stark/JJ
black-and-white/JJ
photos/NNS
of/IN
Hollywood/NNP
celebrities/NNS
pitching/VBG
jeans/NNS
,/,
shoes/NNS
and/CC
liquor/NN
./.
Portrait/NN
studios/NNS
accustomed/VBN
to/TO
shooting/VBG
only/RB
in/IN
color/NN
report/VBP
a/DT
rush/NN
to/TO
black-and-white/JJ
portrait/NN
orders/NNS
./.
And/CC
black-and-white/JJ
photography/NN
classes/NNS
are/VBP
crowded/VBN
with/IN
students/NNS
./.
What/WP
's/VBZ
happening/VBG
in/IN
photography/NN
mirrors/VBZ
the/DT
popularity/NN
of/IN
black/JJ
and/CC
white/JJ
in/IN
fashion/NN
,/,
home/NN
furnishings/NNS
and/CC
cinematography/NN
./.
On/IN
Seventh/NNP
Avenue/NNP
,/,
designers/NNS
have/VBP
been/VBN
advancing/VBG
the/DT
monochrome/JJ
look/NN
with/IN
clothing/NN
collections/NNS
done/VBN
entirely/RB
in/IN
black/JJ
and/CC
white/JJ
./.
And/CC
classic/JJ
black-and-white/JJ
movies/NNS
are/VBP
enjoying/VBG
a/DT
comeback/NN
on/IN
videocassette/NN
tapes/NNS
,/,
spurred/VBD
,/,
in/IN
part/NN
,/,
by/IN
the/DT
backlash/NN
against/IN
colorization/NN
of/IN
old/JJ
films/NNS
./.
``/``
The/DT
pendulum/NN
is/VBZ
swinging/VBG
back/RB
to/TO
black/NN
and/CC
white/NN
,/,
''/''
says/VBZ
Richard/NNP
DeMoulin/NNP
,/,
the/DT
general/JJ
manager/NN
of/IN
Eastman/NNP
Kodak/NNP
Co./NNP
's/POS
professional/JJ
photography/NN
division/NN
./.
Until/IN
two/CD
years/NNS
ago/RB
,/,
sales/NNS
of/IN
black-and-white/JJ
film/NN
had/VBD
been/VBN
declining/VBG
steadily/RB
since/IN
the/DT
1960s/CD
./.
But/CC
last/JJ
year/NN
,/,
buoyed/VBN
by/IN
increased/VBN
use/NN
in/IN
advertising/VBG
and/CC
other/JJ
commercial/JJ
applications/NNS
,/,
sales/NNS
increased/VBD
5/CD
%/NN
,/,
and/CC
they/PRP
are/VBP
expected/VBN
to/TO
jump/VB
at/IN
least/JJS
that/DT
much/RB
again/RB
this/DT
year/NN
./.
Photographic/JJ
companies/NNS
are/VBP
scrambling/VBG
to/TO
tap/VB
the/DT
resurging/VBG
market/NN
,/,
reviving/VBG
some/DT
black-and-white/JJ
product/NN
lines/NNS
and/CC
developing/VBG
new/JJ
ones/NNS
./.
At/IN
Kodak/NNP
,/,
which/WDT
largely/RB
ignored/VBD
the/DT
market/NN
for/IN
years/NNS
,/,
black-and-white/JJ
film/NN
sales/NNS
now/RB
account/VBP
for/IN
nearly/RB
15/CD
%/NN
of/IN
the/DT
company/NN
's/POS
$/$
3/CD
billion/CD
in/IN
film/NN
and/CC
paper/NN
sales/NNS
annually/RB
,/,
up/IN
from/IN
10/CD
%/NN
three/CD
years/NNS
ago/RB
./.
The/DT
Rochester/NNP
,/,
N.Y./NNP
,/,
photographic/JJ
giant/NN
recently/RB
began/VBD
marketing/VBG
T-Max/NNP
3200/CD
,/,
one/CD
of/IN
the/DT
fastest/JJS
and/CC
most/RBS
sensitive/JJ
monochrome/JJ
films/NNS
./.
Aimed/VBN
at/IN
commercial/JJ
photographers/NNS
,/,
the/DT
film/NN
can/MD
be/VB
used/VBN
in/IN
very/RB
low/JJ
light/NN
without/IN
sacrificing/VBG
quality/NN
,/,
says/VBZ
Donald/NNP
Franz/NNP
of/IN
Photofinishing/NNP
Newsletter/NNP
./.
Also/RB
trying/VBG
to/TO
snare/VB
a/DT
portion/NN
of/IN
the/DT
$/$
2/CD
billion-a-year/JJ
industry/NN
is/VBZ
Agfa/NNP
Corp./NNP
,/,
a/DT
unit/NN
of/IN
Bayer/NNP
AG/NNP
./.
Agfa/NNP
recently/RB
signed/VBD
Olympic/JJ
gold/NN
medalist/NN
Florence/NNP
Griffith-Joyner/NNP
to/TO
endorse/VB
a/DT
new/JJ
line/NN
of/IN
black-and-white/JJ
paper/NN
that/WDT
's/VBZ
geared/VBN
to/TO
consumers/NNS
and/CC
will/MD
compete/VB
directly/RB
with/IN
Kodak/NNP
's/POS
papers/NNS
./.
Slated/VBN
for/IN
market/NN
by/IN
the/DT
end/NN
of/IN
the/DT
year/NN
,/,
the/DT
paper/NN
``/``
could/MD
have/VB
been/VBN
introduced/VBN
a/DT
long/JJ
time/NN
ago/RB
but/CC
the/DT
market/NN
was/VBD
n't/RB
there/RB
then/RB
,/,
''/''
says/VBZ
an/DT
Agfa/NNP
spokesman/NN
./.
The/DT
biggest/JJS
beneficiary/NN
of/IN
the/DT
black-and-white/JJ
revival/NN
is/VBZ
likely/JJ
to/TO
be/VB
International/NNP
Paper/NNP
Co./NNP
's/POS
Ilford/NNP
division/NN
,/,
known/VBN
in/IN
the/DT
industry/NN
for/IN
its/PRP$
premium/NN
products/NNS
./.
Sales/NNS
of/IN
Ilford/NNP
's/POS
four/CD
varieties/NNS
of/IN
black-and-white/JJ
film/NN
this/DT
year/NN
are/VBP
outpacing/VBG
growth/NN
in/IN
the/DT
overall/JJ
market/NN
,/,
although/IN
the/DT
company/NN
wo/MD
n't/RB
say/VB
by/IN
exactly/RB
how/WRB
much/JJ
./.
``/``
We/PRP
hope/VBP
the/DT
trend/NN
lasts/VBZ
,/,
''/''
says/VBZ
Laurie/NNP
DiCara/NNP
,/,
Ilford/NNP
's/POS
marketing/NN
communications/NNS
director/NN
./.
Why/WRB
all/DT
the/DT
interest/NN
?/.
For/IN
baby/NN
boomers/NNS
who/WP
grew/VBD
up/RP
being/VBG
photographed/VBN
in/IN
color/NN
,/,
black/NN
and/CC
white/NN
seems/VBZ
eye-catching/JJ
and/CC
exotic/JJ
./.
``/``
It/PRP
has/VBZ
an/DT
archival/JJ
,/,
almost/RB
nostalgic/JJ
quality/NN
to/TO
it/PRP
,/,
''/''
says/VBZ
Owen/NNP
B./NNP
Butler/NNP
,/,
the/DT
chairman/NN
of/IN
the/DT
applied/VBN
photography/NN
department/NN
at/IN
Rochester/NNP
Institute/NNP
of/IN
Technology/NNP
./.
``/``
You/PRP
can/MD
shift/VB
out/IN
of/IN
reality/NN
with/IN
black/NN
and/CC
white/NN
,/,
''/''
he/PRP
adds/VBZ
./.
Such/JJ
features/NNS
have/VBP
been/VBN
especially/RB
attractive/JJ
to/TO
professional/JJ
photographers/NNS
and/CC
marketing/NN
executives/NNS
,/,
who/WP
have/VBP
been/VBN
steadily/RB
increasing/VBG
their/PRP$
use/NN
of/IN
black/NN
and/CC
white/NN
in/IN
advertising/NN
./.
Processing/VBG
of/IN
black-and-white/JJ
commercial/JJ
film/NN
jumped/VBD
24/CD
%/NN
last/JJ
year/NN
to/TO
18.7/CD
million/CD
rolls/NNS
./.
Consider/VB
Gap/NNP
Inc./NNP
,/,
whose/WP$
latest/JJS
ad/NN
campaign/NN
features/VBZ
black-and-white/JJ
shots/NNS
of/IN
Hollywood/NNP
stars/NNS
,/,
artists/NNS
and/CC
other/JJ
well-known/JJ
personalities/NNS
modeling/VBG
the/DT
retailer/NN
's/POS
jeans/NNS
and/CC
T-shirts/NNS
./.
Richard/NNP
Crisman/NNP
,/,
the/DT
account/NN
manager/NN
for/IN
the/DT
campaign/NN
,/,
says/VBZ
Gap/NNP
did/VBD
n't/RB
intentionally/RB
choose/VB
black/JJ
and/CC
white/JJ
to/TO
distinguish/VB
its/PRP$
ads/NNS
from/IN
the/DT
color/NN
spreads/NNS
of/IN
competitors/NNS
./.
``/``
We/PRP
wanted/VBD
to/TO
highlight/VB
the/DT
individual/NN
,/,
not/RB
the/DT
environment/NN
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
and/CC
black/NN
and/CC
white/NN
allows/VBZ
you/PRP
to/TO
do/VB
that/DT
better/RBR
than/IN
color/NN
./.
''/''
The/DT
campaign/NN
won/VBD
a/DT
Cleo/NNP
award/NN
as/IN
this/DT
year/NN
's/POS
best/JJS
ad/NN
by/IN
a/DT
specialty/NN
retailer/NN
./.
Even/RB
food/NN
products/NNS
and/CC
automobiles/NNS
,/,
which/WDT
have/VBP
long/RB
depended/VBN
on/IN
color/NN
,/,
are/VBP
making/VBG
the/DT
switch/NN
./.
Companies/NNS
``/``
feel/VBP
black/NN
and/CC
white/NN
will/MD
convey/VB
a/DT
stronger/JJR
statement/NN
,/,
''/''
says/VBZ
Marc/NNP
L./NNP
Hauser/NNP
,/,
a/DT
Chicago/NNP
photographer/NN
who/WP
is/VBZ
working/VBG
on/IN
a/DT
black-and-white/JJ
print/NN
ad/NN
for/IN
Stouffer/NNP
Food/NNP
Corp./NNP
's/POS
Lean/NNP
Cuisine/NNP
./.
Other/JJ
companies/NNS
that/WDT
are/VBP
currently/RB
using/VBG
two-tone/JJ
ads/NNS
include/VBP
American/NNP
Express/NNP
Co./NNP
and/CC
Epson/NNP
America/NNP
Inc/NNP
./.
Portrait/NN
studios/NNS
have/VBP
also/RB
latched/VBN
onto/IN
the/DT
trend/NN
./.
Using/VBG
black/NN
and/CC
white/NN
,/,
``/``
we/PRP
can/MD
make/VB
housewives/NNS
look/VB
like/IN
stars/NNS
,/,
''/''
says/VBZ
John/NNP
Perrin/NNP
./.
His/PRP$
On-Broadway/NNP
Photography/NNP
studio/NN
in/IN
Portland/NNP
,/,
Ore./NNP
,/,
doubled/VBD
its/PRP$
business/NN
last/JJ
year/NN
and/CC
,/,
he/PRP
says/VBZ
,/,
is/VBZ
booked/VBN
solid/JJ
for/IN
the/DT
next/JJ
five/CD
./.
One/CD
customer/NN
,/,
Dayna/NNP
Brunsdon/NNP
,/,
says/VBZ
she/PRP
spurned/VBD
a/DT
color/NN
portrait/NN
for/IN
black/JJ
and/CC
white/JJ
because/IN
``/``
it/PRP
's/VBZ
more/RBR
dramatic/JJ
./.
I/PRP
show/VBP
it/PRP
to/TO
my/PRP$
friends/NNS
,/,
and/CC
they/PRP
all/DT
say/VBP
`/``
wow/UH
./.
'/''
It/PRP
is/VBZ
n't/RB
ordinary/JJ
like/IN
color/NN
./.
''/''
Still/RB
,/,
most/JJS
consumers/NNS
are/VBP
n't/RB
plunking/VBG
black-and-white/JJ
film/NN
into/IN
their/PRP$
cameras/NNS
to/TO
take/VB
family/NN
snapshots/NNS
./.
One/CD
big/JJ
obstacle/NN
is/VBZ
that/IN
few/JJ
drugstores/NNS
develop/VBP
the/DT
film/NN
anymore/RB
./.
Typically/RB
,/,
it/PRP
must/MD
be/VB
mailed/VBN
to/TO
a/DT
handful/NN
of/IN
processors/NNS
and/CC
may/MD
take/VB
a/DT
week/NN
or/CC
more/JJR
to/TO
be/VB
processed/VBN
and/CC
returned/VBN
./.
Black-and-white/JJ
film/NN
costs/VBZ
consumers/NNS
a/DT
little/RB
less/JJR
than/IN
color/NN
film/NN
,/,
and/CC
processing/NN
costs/VBZ
the/DT
same/JJ
./.
But/CC
for/IN
photofinishers/NNS
,/,
developing/NN
costs/NNS
for/IN
black-and-white/JJ
film/NN
are/VBP
higher/JJR
./.
Some/DT
companies/NNS
are/VBP
starting/VBG
to/TO
tackle/VB
that/DT
problem/NN
./.
Ilford/NNP
,/,
for/IN
example/NN
,/,
recently/RB
introduced/VBD
a/DT
black-and-white/JJ
film/NN
that/WDT
can/MD
be/VB
processed/VBN
quickly/RB
by/IN
color/NN
labs/NNS
./.
Intent/NN
on/IN
wooing/VBG
customers/NNS
,/,
the/DT
company/NN
is/VBZ
also/RB
increasing/VBG
its/PRP$
sponsorship/NN
of/IN
black-and-white/JJ
photography/NN
classes/NNS
./.
Similarly/RB
,/,
Agfa/NNP
is/VBZ
sponsoring/VBG
scores/NNS
of/IN
photography/NN
contests/NNS
at/IN
high/JJ
schools/NNS
and/CC
colleges/NNS
,/,
offering/VBG
free/JJ
black-and-white/JJ
film/NN
and/CC
paper/NN
as/IN
prizes/NNS
./.
And/CC
Kodak/NNP
is/VBZ
distributing/VBG
an/DT
instructional/JJ
video/NN
to/TO
processors/NNS
on/IN
how/WRB
to/TO
develop/VB
its/PRP$
monochrome/JJ
film/NN
more/RBR
efficiently/RB
./.
Other/JJ
companies/NNS
are/VBP
introducing/VBG
related/VBN
products/NNS
./.
Charles/NNP
Beseler/NNP
Co./NNP
,/,
a/DT
leading/VBG
maker/NN
of/IN
photographic/JJ
enlargers/NNS
,/,
introduced/VBD
last/JJ
month/NN
a/DT
complete/JJ
darkroom/NN
starter/NN
kit/NN
targeted/VBN
at/IN
teen-agers/NNS
who/WP
want/VBP
to/TO
process/VB
their/PRP$
own/JJ
black-and-white/JJ
photographs/NNS
./.
The/DT
kit/NN
,/,
which/WDT
has/VBZ
a/DT
suggested/VBN
retail/JJ
price/NN
of/IN
$/$
250/CD
and/CC
has/VBZ
already/RB
become/VBN
a/DT
bestseller/NN
,/,
was/VBD
introduced/VBN
after/IN
retailers/NNS
noticed/VBD
numerous/JJ
requests/NNS
from/IN
parents/NNS
for/IN
children/NNS
's/POS
photography/NN
equipment/NN
./.
``/``
It/PRP
seems/VBZ
computers/NNS
as/IN
hobbies/NNS
have/VBP
waned/VBN
,/,
''/''
says/VBZ
Ian/NNP
Brightman/NNP
,/,
Beseler/NNP
's/POS
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
./.
But/CC
some/DT
industry/NN
observers/NNS
believe/VBP
the/DT
resurgence/NN
of/IN
black/NN
and/CC
white/NN
is/VBZ
only/RB
a/DT
fad/NN
./.
They/PRP
cite/VBP
the/DT
emergence/NN
of/IN
still/JJ
electronic/JJ
photography/NN
,/,
more/JJR
newspapers/NNS
turning/VBG
to/TO
color/VB
on/IN
their/PRP$
pages/NNS
and/CC
measurable/JJ
improvements/NNS
in/IN
the/DT
quality/NN
of/IN
color/NN
prints/NNS
./.
``/``
Black/NN
and/CC
white/NN
has/VBZ
n't/RB
made/VBD
the/DT
same/JJ
quantum/NN
leaps/NNS
in/IN
technological/JJ
development/NN
as/IN
color/NN
,/,
''/''
says/VBZ
Mr./NNP
Butler/NNP
of/IN
the/DT
Rochester/NNP
Institute/NNP
./.
``/``
The/DT
color/NN
print/NN
today/NN
is/VBZ
far/RB
superior/JJ
to/TO
prints/NNS
of/IN
10/CD
years/NNS
ago/RB
./.
You/PRP
ca/MD
n't/RB
say/VB
the/DT
same/JJ
with/IN
black/JJ
and/CC
white/JJ
./.
''/''
But/CC
when/WRB
Popular/NNP
Photography/NNP
,/,
a/DT
leading/VBG
magazine/NN
for/IN
photographers/NNS
,/,
selected/VBD
15/CD
of/IN
the/DT
greatest/JJS
photos/NNS
ever/RB
made/VBN
for/IN
its/PRP$
latest/JJS
issue/NN
celebrating/VBG
photography/NN
's/POS
150th/JJ
anniversary/NN
,/,
all/DT
were/VBD
black/NN
and/CC
white/NN
./.
``/``
It/PRP
's/VBZ
got/VBD
a/DT
classic/JJ
spirit/NN
and/CC
carries/VBZ
over/RP
emotionally/RB
,/,
''/''
says/VBZ
Alfred/NNP
DeBat/NNP
of/IN
Professional/NNP
Photographers/NNP
of/IN
America/NNP
./.
``/``
That/DT
's/VBZ
the/DT
appeal/NN
./.
''/''
McClatchy/NNP
Newspapers/NNP
Inc./NNP
said/VBD
improvements/NNS
in/IN
advertising/NN
and/CC
subscription/NN
revenue/NN
led/VBD
to/TO
a/DT
21/CD
%/NN
gain/NN
in/IN
third-quarter/JJ
profit/NN
to/TO
$/$
8.8/CD
million/CD
,/,
or/CC
31/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
7.2/CD
million/CD
,/,
or/CC
25/CD
cents/NNS
a/DT
share/NN
./.
Sales/NNS
rose/VBD
more/RBR
than/IN
7/CD
%/NN
to/TO
$/$
94.9/CD
million/CD
from/IN
$/$
88.3/CD
million/CD
./.
The/DT
Sacramento/NNP
,/,
Calif./NNP
,/,
company/NN
also/RB
attributed/VBD
improved/VBN
performance/NN
to/TO
a/DT
lower/JJR
effective/JJ
tax/NN
rate/NN
and/CC
higher/JJR
interest/NN
income/NN
./.
For/IN
the/DT
nine/CD
months/NNS
,/,
the/DT
newspaper/NN
chain/NN
had/VBD
almost/RB
a/DT
23/CD
%/NN
increase/NN
in/IN
profit/NN
to/TO
$/$
23.6/CD
million/CD
,/,
or/CC
83/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
19.2/CD
million/CD
,/,
or/CC
68/CD
cents/NNS
a/DT
share/NN
./.
Sales/NNS
grew/VBD
almost/RB
7/CD
%/NN
to/TO
$/$
279.1/CD
million/CD
from/IN
$/$
261.3/CD
million/CD
./.
McClatchy/NNP
publishes/VBZ
the/DT
Sacramento/NNP
Calif/NNP
./.
Bee/NNP
and/CC
Tacoma/NNP
Wash/NNP
./.
News/NNP
Tribune/NNP
,/,
and/CC
other/JJ
papers/NNS
in/IN
Western/JJ
states/NNS
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
the/DT
company/NN
closed/VBD
at/IN
$/$
25.25/CD
a/DT
share/NN
,/,
down/RB
25/CD
cents/NNS
./.
Agip/NNP
S.p/NNP
./.
A./NNP
and/CC
Societe/NNP
National/NNP
Elf/NNP
Aquitaine/NNP
,/,
the/DT
state/NN
oil/NN
companies/NNS
of/IN
Italy/NNP
and/CC
France/NNP
,/,
respectively/RB
,/,
submitted/VBD
an/DT
offer/NN
to/TO
buy/VB
Gatoil/NNP
Suisse/NNP
S.A/NNP
./.
The/DT
price/NN
was/VBD
n't/RB
disclosed/VBD
./.
A/DT
spokesman/NN
for/IN
Gatoil/NNP
said/VBD
that/IN
the/DT
Swiss/NNP
oil/NN
concern/NN
was/VBD
examining/VBG
the/DT
offer/NN
,/,
submitted/VBD
last/JJ
Friday/NNP
,/,
along/IN
with/IN
two/CD
other/JJ
offers/NNS
,/,
also/RB
submitted/VBN
last/JJ
week/NN
./.
Those/DT
two/CD
offers/NNS
were/VBD
private/JJ
and/CC
the/DT
spokesman/NN
refused/VBD
to/TO
identify/VB
the/DT
bidding/VBG
companies/NNS
./.
The/DT
spokesman/NN
further/RBR
said/VBD
that/IN
at/IN
least/JJS
two/CD
more/JJR
offers/NNS
are/VBP
expected/VBN
from/IN
other/JJ
companies/NNS
within/IN
two/CD
weeks/NNS
./.
Gatoil/NNP
Suisse/NNP
owns/VBZ
an/DT
oil/NN
refinery/NN
in/IN
Switzerland/NNP
with/IN
a/DT
capacity/NN
of/IN
70,000/CD
barrels/NNS
a/DT
day/NN
,/,
along/IN
with/IN
a/DT
network/NN
of/IN
gasoline/NN
retailing/VBG
outlets/NNS
./.
While/IN
Friday/NNP
's/POS
plunging/VBG
stock/NN
market/NN
prompted/VBD
new/JJ
fears/NNS
about/IN
the/DT
economy/NN
's/POS
prospects/NNS
,/,
a/DT
little-known/JJ
indicator/NN
that/WDT
has/VBZ
faithfully/RB
foreshadowed/VBN
the/DT
economy/NN
's/POS
ups/NNS
and/CC
downs/NNS
by/IN
exceptionally/RB
long/JJ
lead/NN
times/NNS
points/VBZ
to/TO
a/DT
sustained/JJ
rise/NN
in/IN
overall/JJ
business/NN
activity/NN
./.
The/DT
barometer/NN
,/,
developed/VBN
by/IN
analysts/NNS
at/IN
Columbia/NNP
University/NNP
's/POS
Center/NNP
for/IN
International/NNP
Business/NNP
Cycle/NNP
Research/NNP
here/RB
,/,
reached/VBD
a/DT
record/NN
high/JJ
of/IN
223.0/CD
in/IN
August/NNP
,/,
the/DT
latest/JJS
month/NN
available/JJ
,/,
and/CC
the/DT
Columbia/NNP
researchers/NNS
estimate/VBP
that/IN
it/PRP
has/VBZ
moved/VBN
even/RB
higher/RBR
since/IN
then/RB
./.
The/DT
latest/JJS
reading/NN
of/IN
223.0/CD
was/VBD
up/RB
from/IN
222.3/CD
in/IN
July/NNP
and/CC
215.3/CD
as/RB
recently/RB
as/IN
March/NNP
./.
The/DT
August/NNP
rise/NN
marked/VBD
the/DT
fifth/JJ
straight/JJ
monthly/JJ
gain/NN
for/IN
the/DT
indicator/NN
,/,
which/WDT
uses/VBZ
the/DT
1967/CD
average/NN
as/IN
a/DT
base/NN
of/IN
100/CD
./.
In/IN
contrast/NN
,/,
the/DT
Commerce/NNP
Department/NNP
's/POS
widely/RB
followed/VBN
index/NN
of/IN
leading/VBG
indicators/NNS
,/,
while/IN
up/RB
in/IN
August/NNP
,/,
has/VBZ
fallen/VBN
repeatedly/RB
since/IN
reaching/VBG
a/DT
high/JJ
early/RB
this/DT
year/NN
./.
Its/PRP$
ragged/JJ
behavior/NN
through/IN
much/JJ
of/IN
1989/CD
has/VBZ
prompted/VBN
some/DT
forecasters/NNS
to/TO
anticipate/VB
the/DT
start/NN
of/IN
a/DT
new/JJ
recession/NN
perhaps/RB
before/IN
year/NN
's/POS
end/NN
./.
But/CC
the/DT
far/RB
stronger/JJR
showing/NN
of/IN
the/DT
Columbia/NNP
index/NN
``/``
makes/VBZ
a/DT
recession/NN
any/DT
time/NN
soon/RB
highly/RB
unlikely/JJ
,/,
''/''
says/VBZ
Geoffrey/NNP
H./NNP
Moore/NNP
,/,
the/DT
director/NN
of/IN
the/DT
Columbia/NNP
facility/NN
./.
A/DT
leading/VBG
authority/NN
on/IN
the/DT
business/NN
cycle/NN
,/,
Mr./NNP
Moore/NNP
also/RB
is/VBZ
a/DT
member/NN
of/IN
the/DT
Business/NNP
Cycle/NNP
Dating/NNP
Group/NNP
,/,
the/DT
panel/NN
of/IN
private/JJ
economists/NNS
that/WDT
decides/VBZ
for/IN
the/DT
government/NN
when/WRB
expansions/NNS
and/CC
recessions/NNS
begin/VBP
and/CC
end/VBP
./.
The/DT
group/NN
normally/RB
convenes/VBZ
only/RB
when/WRB
a/DT
change/NN
in/IN
the/DT
economy/NN
's/POS
general/JJ
course/NN
seems/VBZ
likely/RB
./.
``/``
No/DT
meeting/NN
is/VBZ
scheduled/VBN
because/IN
the/DT
expansion/NN
shows/VBZ
no/DT
sign/NN
of/IN
going/VBG
off/IN
the/DT
tracks/NNS
,/,
''/''
Mr./NNP
Moore/NNP
reports/VBZ
./.
Based/VBN
largely/RB
on/IN
the/DT
recent/JJ
strength/NN
in/IN
their/PRP$
index/NN
,/,
called/VBN
the/DT
long/JJ
leading/VBG
indicator/NN
,/,
the/DT
Columbia/NNP
analysts/NNS
foresee/VBP
uninterrupted/JJ
economic/JJ
growth/NN
through/IN
the/DT
rest/NN
of/IN
this/DT
year/NN
and/CC
next/JJ
year/NN
as/RB
well/RB
./.
They/PRP
expect/VBP
a/DT
2.6/CD
%/NN
rise/NN
in/IN
1990/CD
in/IN
the/DT
gross/JJ
national/JJ
product/NN
,/,
after/IN
adjustment/NN
for/IN
inflation/NN
./.
Underlying/VBG
this/DT
optimism/NN
is/VBZ
the/DT
index/NN
's/POS
longstanding/JJ
ability/NN
to/TO
signal/VB
recessions/NNS
or/CC
recoveries/NNS
,/,
as/IN
the/DT
case/NN
may/MD
be/VB
,/,
by/IN
substantially/RB
greater/JJR
periods/NNS
than/IN
the/DT
Commerce/NNP
Department/NNP
's/POS
index/NN
of/IN
leading/VBG
indicators/NNS
./.
Over/IN
the/DT
full/JJ
post-World/NNP

War/NNP
II/NNP
era/NN
,/,
the/DT
Columbia/NNP
index/NN
,/,
on/IN
the/DT
average/NN
,/,
has/VBZ
entered/VBN
sustained/VBN
declines/NNS
14/CD
months/NNS
before/IN
the/DT
onset/NN
of/IN
recessions/NNS
and/CC
turned/VBD
up/RP
eight/CD
months/NNS
before/IN
recoveries/NNS
./.
The/DT
comparable/JJ
lead/NN
times/NNS
for/IN
the/DT
Commerce/NNP
index/NN
,/,
whose/WP$
components/NNS
include/VBP
the/DT
stock/NN
market/NN
,/,
are/VBP
far/RB
shorter/JJR
--/:
10/CD
months/NNS
before/IN
recessions/NNS
and/CC
only/RB
three/CD
months/NNS
before/IN
recoveries/NNS
./.
The/DT
Columbia/NNP
economists/NNS
also/RB
have/VBP
reconstructed/VBN
how/WRB
the/DT
long/JJ
leading/VBG
index/NN
would/MD
have/VB
behaved/VBN
,/,
had/VBD
it/PRP
existed/VBD
,/,
in/IN
1929/CD
,/,
before/IN
the/DT
stock/NN
market/NN
crash/NN
in/IN
October/NNP
that/WDT
ushered/VBD
in/IN
the/DT
Great/NNP
Depression/NNP
./.
The/DT
indicator/NN
reached/VBD
a/DT
peak/NN
in/IN
January/NNP
1929/CD
and/CC
then/RB
fell/VBD
steadily/RB
up/IN
to/TO
and/CC
through/IN
the/DT
crash/NN
./.
``/``
It/PRP
was/VBD
an/DT
entirely/RB
different/JJ
pattern/NN
from/IN
what/WP
we/PRP
're/VBP
seeing/VBG
now/RB
,/,
''/''
Mr./NNP
Moore/NNP
says/VBZ
./.
A/DT
major/JJ
source/NN
of/IN
the/DT
recent/JJ
strength/NN
in/IN
the/DT
long/JJ
leading/VBG
indicator/NN
has/VBZ
been/VBN
the/DT
performance/NN
of/IN
the/DT
Dow/NNP
Jones/NNP
corporate/JJ
bond-price/JJ
index/NN
,/,
which/WDT
is/VBZ
not/RB
a/DT
part/NN
of/IN
the/DT
Commerce/NNP
index/NN
./.
In/IN
August/NNP
,/,
the/DT
bond/NN
measure/NN
was/VBD
at/IN
its/PRP$
highest/JJS
monthly/JJ
average/NN
since/IN
early/JJ
1987/CD
./.
It/PRP
also/RB
rose/VBD
last/JJ
Friday/NNP
,/,
while/IN
the/DT
stock/NN
market/NN
sagged/VBD
./.
Other/JJ
components/NNS
of/IN
the/DT
long/JJ
leading/VBG
indicator/NN
include/VBP
a/DT
ratio/NN
of/IN
prices/NNS
to/TO
unit/NN
labor/NN
costs/NNS
in/IN
manufacturing/VBG
industries/NNS
,/,
the/DT
M2/CD
version/NN
of/IN
the/DT
money/NN
supply/NN
,/,
adjusted/VBN
for/IN
inflation/NN
,/,
and/CC
the/DT
volume/NN
of/IN
new/JJ
home-building/JJ
permits/NNS
./.
Notably/RB
absent/JJ
from/IN
the/DT
Columbia/NNP
index/NN
is/VBZ
the/DT
stock/NN
market/NN
,/,
which/WDT
Mr./NNP
Moore/NNP
says/VBZ
``/``
is/VBZ
simply/RB
no/DT
longer/RBR
such/JJ
a/DT
good/JJ
indicator/NN
of/IN
the/DT
economy/NN
's/POS
long-range/JJ
prospects/NNS
,/,
though/IN
it/PRP
still/RB
is/VBZ
useful/JJ
for/IN
anticipating/VBG
some/DT
short-run/JJ
twists/NNS
and/CC
turns/NNS
./.
''/''
As/RB
recently/RB
as/IN
1975/CD
,/,
the/DT
stock/NN
market/NN
--/:
as/IN
reflected/VBN
in/IN
the/DT
Standard/NNP
&/CC
Poor/NNP
's/POS
index/NN
of/IN
500/CD
common/JJ
stocks/NNS
--/:
was/VBD
rated/VBN
by/IN
the/DT
National/NNP
Bureau/NNP
of/IN
Economic/NNP
Research/NNP
as/IN
the/DT
best/JJS
of/IN
the/DT
12/CD
leading/VBG
indicators/NNS
that/WDT
then/RB
made/VBD
up/RP
the/DT
Commerce/NNP
index/NN
./.
It/PRP
was/VBD
assigned/VBN
a/DT
mark/NN
of/IN
80/CD
out/IN
of/IN
a/DT
possible/JJ
100/CD
,/,
compared/VBN
with/IN
scores/NNS
ranging/VBG
as/RB
low/JJ
as/IN
69/CD
for/IN
the/DT
other/JJ
components/NNS
./.
The/DT
stock/NN
market/NN
has/VBZ
lost/VBN
some/DT
precursory/JJ
power/NN
,/,
analysts/NNS
at/IN
the/DT
Columbia/NNP
center/NN
claim/NN
,/,
because/IN
of/IN
the/DT
growing/VBG
impact/NN
of/IN
international/JJ
developments/NNS
./.
``/``
Stocks/NNS
have/VBP
become/VBN
more/RBR
sensitive/JJ
to/TO
factors/NNS
not/RB
directly/RB
tied/VBN
to/TO
the/DT
domestic/JJ
economy/NN
,/,
''/''
Mr./NNP
Moore/NNP
says/VBZ
,/,
citing/VBG
the/DT
exchange/NN
rate/NN
for/IN
the/DT
dollar/NN
on/IN
currency/NN
markets/NNS
,/,
the/DT
foreign-trade/JJ
balance/NN
and/CC
inflows/NNS
of/IN
foreign/JJ
capital/NN
./.
He/PRP
also/RB
feels/VBZ
that/IN
the/DT
rise/NN
of/IN
such/JJ
computer-based/JJ
practices/NNS
as/IN
program/NN
trading/NN
has/VBZ
diminished/VBN
the/DT
stock/NN
market/NN
's/POS
relevancy/NN
to/TO
the/DT
economic/JJ
outlook/NN
./.
BSN/NNP
S.A./NNP
,/,
a/DT
leading/VBG
French/JJ
food/NN
group/NN
,/,
said/VBD
it/PRP
agreed/VBD
to/TO
acquire/VB
Birkel/NNP
G.m.b/NNP
./.
H./NNP
,/,
a/DT
West/JJ
German/JJ
pasta/NN
maker/NN
./.
The/DT
value/NN
of/IN
the/DT
acquisition/NN
was/VBD
n't/RB
disclosed/VBD
./.
The/DT
move/NN
is/VBZ
in/IN
line/NN
with/IN
BSN/NNP
's/POS
strategy/NN
of/IN
gradually/RB
building/VBG
its/PRP$
share/NN
of/IN
the/DT
European/JJ
pasta/NN
market/NN
through/IN
external/JJ
growth/NN
./.
BSN/NNP
will/MD
initially/RB
acquire/VB
a/DT
15/CD
%/NN
interest/NN
in/IN
Birkel/NNP
,/,
a/DT
closely/RB
held/VBN
concern/NN
./.
The/DT
French/JJ
group/NN
has/VBZ
an/DT
agreement/NN
giving/VBG
it/PRP
the/DT
right/NN
to/TO
buy/VB
all/DT
the/DT
shares/NNS
outstanding/JJ
,/,
and/CC
this/DT
could/MD
be/VB
completed/VBN
within/IN
a/DT
few/JJ
months/NNS
,/,
a/DT
BSN/NNP
spokeswoman/NN
said/VBD
./.
The/DT
takeover/NN
was/VBD
submitted/VBN
for/IN
approval/NN
by/IN
the/DT
West/JJ
German/JJ
cartel/NN
office/NN
,/,
BSN/NNP
said/VBD
./.
Birkel/NNP
is/VBZ
West/NNP
Germany/NNP
's/POS
second-biggest/JJ
producer/NN
of/IN
pasta/NN
,/,
with/IN
sales/NNS
of/IN
250/CD
million/CD
marks/NNS
$/$
133.4/CD
million/CD
1988/CD
./.
It/PRP
has/VBZ
750/CD
workers/NNS
at/IN
three/CD
production/NN
units/NNS
in/IN
southwest/JJS
Germany/NNP
,/,
and/CC
is/VBZ
that/DT
nation/NN
's/POS
leading/VBG
producer/NN
of/IN
pasta/NN
sauces/NNS
./.
The/DT
acquisition/NN
strengthens/VBZ
BSN/NNP
's/POS
position/NN
in/IN
the/DT
European/JJ
pasta/NN
market/NN
./.
The/DT
French/JJ
group/NN
currently/RB
ranks/VBZ
second/JJ
after/IN
Barilla/NNP
Group/NNP
of/IN
Italy/NNP
,/,
whose/WP$
sales/NNS
are/VBP
chiefly/RB
in/IN
the/DT
Italian/JJ
market/NN
./.
Moody/NNP
's/POS
Investors/NNP
Service/NNP
Inc./NNP
said/VBD
it/PRP
reduced/VBD
its/PRP$
rating/NN
on/IN
$/$
281/CD
million/CD
of/IN
senior/JJ
and/CC
subordinated/VBN
debt/NN
of/IN
this/DT
thrift/NN
holding/VBG
company/NN
,/,
to/TO
C/NNP
from/IN
Ca/NNP
,/,
saying/VBG
it/PRP
believes/VBZ
bondholders/NNS
will/MD
recover/VB
only/RB
``/``
negligible/JJ
principal/NN
./.
''/''
The/DT
agency/NN
said/VBD
it/PRP
confirmed/VBD
American/NNP
Continental/NNP
's/POS
preferred/VBN
stock/NN
rating/NN
at/IN
C/NNP
./.
American/NNP
Continental/NNP
's/POS
thrift/NN
unit/NN
,/,
Los/NNP
Angeles-based/JJ
Lincoln/NNP
Savings/NNP
&/CC
Loan/NNP
Association/NNP
,/,
is/VBZ
in/IN
receivership/NN
and/CC
the/DT
parent/NN
company/NN
has/VBZ
filed/VBN
for/IN
protection/NN
from/IN
creditor/NN
lawsuits/NNS
under/IN
Chapter/NNP
11/CD
of/IN
the/DT
federal/JJ
Bankruptcy/NNP
Code/NNP
./.
CENTRUST/NNP
SAVINGS/NNP
BANK/NNP
Miami/NNP
Moody/NNP
's/POS
Investors/NNP
Service/NNP
Inc./NNP
downgraded/VBD
its/PRP$
ratings/NNS
on/IN
the/DT
subordinated/VBN
debt/NN
of/IN
CenTrust/NNP
to/TO
Caa/NNP
from/IN
B-3/NNP
./.
The/DT
rating/NN
agency/NN
also/RB
reduced/VBD
the/DT
ratings/NNS
for/IN
long-term/JJ
deposits/NNS
to/TO
B-3/NNP
from/IN
Ba-3/CD
and/CC
for/IN
preferred/VBN
stock/NN
to/TO
Ca/NNP
from/IN
Caa/NNP
./.
The/DT
rating/NN
agency/NN
said/VBD
about/RB
$/$
85/CD
million/CD
in/IN
securities/NNS
was/VBD
affected/VBN
./.
The/DT
downgrades/NNS
were/VBD
prompted/VBN
,/,
Moody/NNP
's/POS
said/VBD
,/,
by/IN
the/DT
continuing/VBG
turmoil/NN
in/IN
the/DT
junk/NN
bond/NN
market/NN
and/CC
the/DT
suspension/NN
of/IN
dividends/NNS
on/IN
CenTrust/NNP
's/POS
preferred/VBN
stock/NN
./.
Moody/NNP
's/POS
also/RB
said/VBD
it/PRP
believed/VBD
the/DT
proposed/VBN
sale/NN
of/IN
63/CD
CenTrust/NNP
branches/NNS
to/TO
Great/JJ
Western/NNP
Bank/NNP
could/MD
,/,
if/IN
completed/VBN
,/,
endanger/VB
the/DT
thrift/NN
's/POS
funding/NN
and/CC
market/NN
position/NN
./.
THE/DT
STOCK/NN
MARKET/NN
AVOIDED/VBD
a/DT
repeat/NN
of/IN
Black/NNP
Monday/NNP
as/IN
prices/NNS
recovered/VBD
from/IN
an/DT
early/JJ
slide/NN
,/,
spurred/VBN
by/IN
bargain-hunting/JJ
institutions/NNS
and/CC
program/NN
traders/NNS
./.
The/DT
Dow/NNP
Jones/NNP
industrials/NNS
closed/VBD
up/RB
88.12/CD
points/NNS
,/,
at/IN
2657.38/CD
,/,
the/DT
fourth-biggest/JJ
gain/NN
ever/RB
,/,
after/IN
being/VBG
down/RB
as/RB
much/JJ
as/IN
63.52/CD
points/NNS
in/IN
the/DT
morning/NN
./.
The/DT
rally/NN
erased/VBN
about/RB
half/NN
of/IN
Friday/NNP
's/POS
190.58-point/JJ
plunge/NN
,/,
but/CC
analysts/NNS
are/VBP
cautious/JJ
about/IN
the/DT
market/NN
's/POS
outlook/NN
./.
The/DT
dollar/NN
also/RB
rebounded/VBD
,/,
while/IN
bond/NN
prices/NNS
plummeted/VBD
and/CC
Treasury/NNP
bill/NN
rates/NNS
soared/VBD
./.
Junk/NN
bonds/NNS
also/RB
recovered/VBD
somewhat/RB
,/,
though/IN
trading/NN
remained/VBD
stalled/JJ
./.
Gold/NNP
also/RB
rose/VBD
./.
Tokyo/NNP
stock/NN
prices/NNS
bounced/VBD
back/RB
in/IN
early/JJ
trading/NN
Tuesday/NNP
following/VBG
a/DT
1.8/CD
%/NN
plunge/NN
on/IN
Monday/NNP
./.
The/DT
dollar/NN
also/RB
moved/VBD
higher/RBR
in/IN
Tokyo/NNP
./.
Donald/NNP
Trump/NNP
withdrew/VBD
his/PRP$
$/$
7.54/CD
billion/CD
offer/NN
for/IN
American/NNP
Air/NNP
,/,
citing/VBG
the/DT
``/``
recent/JJ
change/NN
in/IN
market/NN
conditions/NNS
./.
''/''
AMR/NNP
slid/VBD
$/$
22.125/CD
,/,
to/TO
$/$
76.50/CD
./.
Also/RB
,/,
a/DT
UAL/NNP
group/NN
tried/VBD
to/TO
get/VB
financing/NN
for/IN
a/DT
lower/JJR
bid/NN
,/,
possibly/RB
$/$
250/CD
a/DT
share/NN
./.
UAL/NNP
fell/VBD
$/$
56.875/CD
,/,
to/TO
$/$
222.875/CD
./.
Leveraged/VBN
buy-outs/NNS
of/IN
airlines/NNS
would/MD
be/VB
subject/JJ
to/TO
approval/NN
by/IN
the/DT
transportation/NN
secretary/NN
under/IN
a/DT
bill/NN
passed/VBN
by/IN
a/DT
House/NNP
subcommittee/NN
./.
IBM/NNP
's/POS
earnings/NNS
tumbled/VBD
30/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
,/,
slightly/RB
more/JJR
than/IN
expected/VBN
./.
The/DT
computer/NN
giant/NN
partly/RB
cited/VBD
a/DT
stronger/JJR
dollar/NN
and/CC
a/DT
delay/NN
in/IN
shipping/VBG
a/DT
new/JJ
high-end/JJ
disk/NN
drive/NN
./.
Analysts/NNS
are/VBP
downbeat/JJ
about/IN
IBM/NNP
's/POS
outlook/NN
for/IN
the/DT
next/JJ
few/JJ
quarters/NNS
./.
U.S./NNP
auto/NN
makers/NNS
plan/VBP
to/TO
decrease/VB
car/NN
production/NN
10.4/CD
%/NN
in/IN
the/DT
fourth/JJ
quarter/NN
,/,
with/IN
virtually/RB
all/DT
the/DT
decline/NN
coming/VBG
from/IN
the/DT
Big/NNP
Three/CD
./.
Output/NN
at/IN
Japanese-owned/JJ
and/CC
managed/VBN
plants/NNS
in/IN
the/DT
U.S./NNP
is/VBZ
due/JJ
to/TO
rise/VB
42/CD
%/NN
./.
Budget/NN
director/NN
Darman/NNP
said/VBD
he/PRP
wo/MD
n't/RB
give/VB
federal/JJ
agencies/NNS
much/JJ
leeway/NN
in/IN
coping/VBG
with/IN
Gramm-Rudman/NNP
spending/NN
cuts/NNS
,/,
which/WDT
took/VBD
effect/NN
yesterday/NN
./.
Darman/NNP
hopes/VBZ
to/TO
prod/VB
Congress/NNP
to/TO
finish/VB
a/DT
deficit/NN
plan/NN
./.
The/DT
S&L/NNP
bailout/NN
agency/NN
would/MD
be/VB
restricted/VBN
by/IN
a/DT
new/JJ
bill/NN
in/IN
how/WRB
it/PRP
raises/VBZ
capital/NN
./.
The/DT
Ways/NNP
and/CC
Means/NNP
plan/NN
would/MD
create/VB
another/DT
possible/JJ
obstacle/NN
to/TO
selling/VBG
sick/JJ
thrifts/NNS
./.
A/DT
natural/JJ
gas/NN
rule/NN
was/VBD
struck/VBN
down/RP
by/IN
a/DT
federal/JJ
appeals/NNS
court/NN
./.
The/DT
regulation/NN
had/VBD
prevented/VBN
pipeline/NN
firms/NNS
from/IN
passing/VBG
part/NN
of/IN
$/$
1/CD
billion/CD
in/IN
costs/NNS
along/IN
to/TO
customers/NNS
./.
The/DT
Supreme/NNP
Court/NNP
agreed/VBD
to/TO
decide/VB
whether/IN
a/DT
federal/JJ
court/NN
may/MD
dismantle/VB
a/DT
merger/NN
that/WDT
has/VBZ
won/VBN
regulatory/JJ
approval/NN
but/CC
been/VBN
ruled/VBN
anticompetitive/JJ
in/IN
a/DT
private/JJ
suit/NN
./.
Merrill/NNP
Lynch/NNP
's/POS
profit/NN
slid/VBD
37/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
./.
Bear/NNP
Stearns/NNP
posted/VBD
a/DT
7.5/CD
%/NN
gain/NN
,/,
while/IN
PaineWebber/NNP
had/VBD
a/DT
decline/NN
due/JJ
to/TO
a/DT
year-ago/JJ
gain/NN
./.
Blue/NNP
Arrow/NNP
of/IN
Britain/NNP
plans/VBZ
to/TO
return/VB
to/TO
the/DT
name/NN
Manpower/NNP
and/CC
take/VB
a/DT
big/JJ
write-off/NN
./.
The/DT
moves/NNS
may/MD
help/VB
the/DT
firm/NN
solidify/VB
its/PRP$
dominance/NN
of/IN
the/DT
U.S./NNP
temporary-help/JJ
market/NN
./.
J.P./NNP
Morgan/NNP
posted/VBD
a/DT
$/$
1.82/CD
billion/CD
loss/NN
for/IN
the/DT
third/JJ
quarter/NN
,/,
reflecting/VBG
a/DT
big/JJ
addition/NN
to/TO
loan-loss/JJ
reserves/NNS
./.
NCNB/NNP
's/POS
profit/NN
more/RBR
than/IN
doubled/VBD
./.
K/NNP
mart/NNP
agreed/VBD
to/TO
acquire/VB
Pace/NNP
Membership/NNP
Warehouse/NNP
for/IN
$/$
322/CD
million/CD
,/,
expanding/VBG
its/PRP$
presence/NN
in/IN
the/DT
growing/VBG
wholesale-store/JJ
business/NN
./.
Markets/NNS
--/:
Stocks/NNS
:/:
Volume/NN
416,290,000/CD
shares/NNS
./.
Dow/NNP
Jones/NNP
industrials/NNS
2657.38/CD
,/,
up/RB
88.12/CD
;/:
transportation/NN
1304.23/CD
,/,
off/JJ
102.06/CD
;/:
utilities/NNS
214.73/CD
,/,
up/RB
2.77/CD
./.
Bonds/NNS
:/:
Shearson/NNP
Lehman/NNP
Hutton/NNP
Treasury/NNP
index/NN
3393.51/CD
,/,
off/JJ
Commodities/NNS
:/:
Dow/NNP
Jones/NNP
futures/NNS
index/NN
129.72/CD
,/,
off/JJ
0.15/CD
;/:
spot/NN
index/NN
130.16/CD
,/,
up/RB
0.91/CD
./.
Dollar/NN
:/:
141.85/CD
yen/NNS
,/,
off/IN
0.25/CD
;/:
1.8685/CD
marks/NNS
,/,
off/IN
0.0055/CD
./.
Monday/NNP
,/,
October/NNP
16/CD
,/,
1989/CD
The/DT
key/JJ
U.S./NNP
and/CC
foreign/JJ
annual/JJ
interest/NN
rates/NNS
below/RB
are/VBP
a/DT
guide/NN
to/TO
general/JJ
levels/NNS
but/CC
do/VBP
n't/RB
always/RB
represent/VB
actual/JJ
transactions/NNS
./.
PRIME/NNP
RATE/NNP
:/:
10/CD
1\/2/CD
%/NN
./.
The/DT
base/NN
rate/NN
on/IN
corporate/JJ
loans/NNS
at/IN
large/JJ
U.S./NNP
money/NN
center/NN
commercial/JJ
banks/NNS
./.
FEDERAL/NNP
FUNDS/NNP
:/:
8/CD
3\/4/CD
%/NN
high/JJ
,/,
8/CD
1\/2/CD
%/NN
low/JJ
,/,
8/CD
5\/8/CD
%/NN
near/IN
closing/VBG
bid/NN
,/,
8/CD
3\/4/CD
%/NN
offered/VBN
./.
Reserves/NNS
traded/VBN
among/IN
commercial/JJ
banks/NNS
for/IN
overnight/JJ
use/NN
in/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
or/CC
more/JJR
./.
Source/NN
:/:
Fulton/NNP
Prebon/NNP
U.S.A/NNP
./.
Inc/NNP
./.
DISCOUNT/NNP
RATE/NNP
:/:
7/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
depository/JJ
institutions/NNS
by/IN
the/DT
New/NNP
York/NNP
Federal/NNP
Reserve/NNP
Bank/NNP
./.
CALL/NN
MONEY/NN
:/:
9/CD
3\/4/CD
%/NN
to/TO
10/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
brokers/NNS
on/IN
stock/NN
exchange/NN
collateral/NN
./.
COMMERCIAL/JJ
PAPER/NN
placed/VBN
directly/RB
by/IN
General/NNP
Motors/NNP
Acceptance/NNP
Corp./NNP
:/:
8.30/CD
%/NN
5/CD
to/TO
44/CD
days/NNS
;/:
8.20/CD
%/NN
45/CD
to/TO
59/CD
days/NNS
;/:
8/CD
%/NN
60/CD
to/TO
89/CD
days/NNS
;/:
7.875/CD
%/NN
90/CD
to/TO
119/CD
days/NNS
;/:
7.75/CD
%/NN
120/CD
to/TO
149/CD
days/NNS
;/:
7.625/CD
%/NN
150/CD
to/TO
179/CD
days/NNS
;/:
7.375/CD
%/NN
180/CD
to/TO
270/CD
days/NNS
./.
COMMERCIAL/JJ
PAPER/NN
:/:
High-grade/JJ
unsecured/JJ
notes/NNS
sold/VBN
through/IN
dealers/NNS
by/IN
major/JJ
corporations/NNS
in/IN
multiples/NNS
of/IN
$/$
1,000/CD
:/:
8.40/CD
%/NN
30/CD
days/NNS
;/:
8.33/CD
%/NN
60/CD
days/NNS
;/:
8.26/CD
%/NN
90/CD
days/NNS
./.
CERTIFICATES/NNS
OF/IN
DEPOSIT/NN
:/:
8.05/CD
%/NN
one/CD
month/NN
;/:
8.02/CD
%/NN
two/CD
months/NNS
;/:
8/CD
%/NN
three/CD
months/NNS
;/:
7.98/CD
%/NN
six/CD
months/NNS
;/:
7.95/CD
%/NN
one/CD
year/NN
./.
Average/NN
of/IN
top/JJ
rates/NNS
paid/VBN
by/IN
major/JJ
New/NNP
York/NNP
banks/NNS
on/IN
primary/JJ
new/JJ
issues/NNS
of/IN
negotiable/JJ
C.D.s/NNS
,/,
usually/RB
on/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
and/CC
more/JJR
./.
The/DT
minimum/NN
unit/NN
is/VBZ
$/$
100,000/CD
./.
Typical/JJ
rates/NNS
in/IN
the/DT
secondary/JJ
market/NN
:/:
8.40/CD
%/NN
one/CD
month/NN
;/:
8.40/CD
%/NN
three/CD
months/NNS
;/:
8.40/CD
%/NN
six/CD
months/NNS
./.
BANKERS/NNS
ACCEPTANCES/NNS
:/:
8.40/CD
%/NN
30/CD
days/NNS
;/:
8.35/CD
%/NN
60/CD
days/NNS
;/:
8.27/CD
%/NN
90/CD
days/NNS
;/:
8.20/CD
%/NN
120/CD
days/NNS
;/:
8.15/CD
%/NN
150/CD
days/NNS
;/:
8.02/CD
%/NN
180/CD
days/NNS
./.
Negotiable/JJ
,/,
bank-backed/JJ
business/NN
credit/NN
instruments/NNS
typically/RB
financing/VBG
an/DT
import/NN
order/NN
./.
LONDON/NNP
LATE/JJ
EURODOLLARS/NNS
:/:
8/CD
5\/8/CD
%/NN
to/TO
8/CD
1\/2/CD
%/NN
one/CD
month/NN
;/:
8/CD
5\/8/CD
%/NN
to/TO
8/CD
1\/2/CD
%/NN
two/CD
months/NNS
;/:
8/CD
9\/16/CD
%/NN
to/TO
8/CD
7\/16/CD
%/NN
three/CD
months/NNS
;/:
8/CD
1\/2/CD
%/NN
to/TO
8/CD
3\/8/CD
%/NN
four/CD
months/NNS
;/:
8/CD
1\/2/CD
%/NN
to/TO
8/CD
3\/8/CD
%/NN
five/CD
months/NNS
;/:
8/CD
1\/2/CD
%/NN
to/TO
8/CD
3\/8/CD
%/NN
six/CD
months/NNS
./.
LONDON/NNP
INTERBANK/NNP
OFFERED/VBN
RATES/NNS
LIBOR/NNP
8/CD
1\/2/CD
%/NN
one/CD
month/NN
;/:
8/CD
1\/2/CD
%/NN
three/CD
months/NNS
;/:
8/CD
7\/16/CD
%/NN
six/CD
months/NNS
;/:
8/CD
3\/8/CD
%/NN
one/CD
year/NN
./.
The/DT
average/NN
of/IN
interbank/NN
offered/VBN
rates/NNS
for/IN
dollar/NN
deposits/NNS
in/IN
the/DT
London/NNP
market/NN
based/VBN
on/IN
quotations/NNS
at/IN
five/CD
major/JJ
banks/NNS
./.
FOREIGN/NNP
PRIME/NNP
RATES/NNP
:/:
Canada/NNP
13.50/CD
%/NN
;/:
Germany/NNP
8.50/CD
%/NN
;/:
Japan/NNP
4.875/CD
%/NN
;/:
Switzerland/NNP
8.50/CD
%/NN
;/:
Britain/NNP
15/CD
%/NN
./.
These/DT
rate/NN
indications/NNS
are/VBP
n't/RB
directly/RB
comparable/JJ
;/:
lending/NN
practices/NNS
vary/VBP
widely/RB
by/IN
location/NN
./.
TREASURY/NNP
BILLS/NNS
:/:
Results/NNS
of/IN
the/DT
Monday/NNP
,/,
October/NNP
16/CD
,/,
1989/CD
,/,
auction/NN
of/IN
short-term/JJ
U.S./NNP
government/NN
bills/NNS
,/,
sold/VBN
at/IN
a/DT
discount/NN
from/IN
face/NN
value/NN
in/IN
units/NNS
of/IN
$/$
10,000/CD
to/TO
$/$
1/CD
million/CD
:/:
7.37/CD
%/NN
,/,
13/CD
weeks/NNS
;/:
7.42/CD
%/NN
,/,
26/CD
weeks/NNS
./.
FEDERAL/NNP
HOME/NNP
LOAN/NNP
MORTGAGE/NNP
CORP/NNP
./.
Freddie/NNP
Mac/NNP
yields/NNS
on/IN
30-year/CD
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days./NNS
9.83/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixedrate/JJ
mortgages/NNS
;/:
7.875/CD
%/NN
,/,
2/CD
%/NN
rate/NN
capped/VBD
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNP
Inc/NNP
./.
FEDERAL/NNP
NATIONAL/NNP
MORTGAGE/NNP
ASSOCIATION/NNP
Fannie/NNP
Mae/NNP
yields/NNS
on/IN
30/CD
year/NN
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
par/NN
.9.82/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed/VBN
rate-mortgages/NN
;/:
8.70/CD
%/NN
,/,
6\/2/CD
rate/NN
capped/VBN
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNP
Inc/NNP
./.
MERRILL/NNP
LYNCH/NNP
READY/NNP
ASSETS/NNP
TRUST/NNP
:/:
8.49/CD
%/NN
./.
Annualized/VBN
average/JJ
rate/NN
of/IN
return/NN
after/IN
expenses/NNS
for/IN
the/DT
past/JJ
30/CD
days/NNS
;/:
not/RB
a/DT
forecast/NN
of/IN
future/JJ
returns/NNS
./.
Intel/NNP
Corp./NNP
said/VBD
it/PRP
reached/VBD
an/DT
agreement/NN
with/IN
Alliant/NNP
Computer/NNP
Systems/NNP
Corp./NNP
to/TO
develop/VB
software/NN
standards/NNS
for/IN
Intel/NNP
's/POS
i860/NN
microprocessor/NN
./.
The/DT
i860/NN
,/,
introduced/VBN
earlier/RBR
this/DT
year/NN
,/,
is/VBZ
Intel/NNP
's/POS
entry/NN
in/IN
the/DT
crowded/VBN
market/NN
for/IN
reduced/VBN
instruction/NN
set/NN
computing/VBG
,/,
or/CC
RISC/NNP
,/,
computers/NNS
./.
Intel/NNP
,/,
based/VBN
in/IN
Santa/NNP
Clara/NNP
,/,
Calif./NNP
,/,
is/VBZ
the/DT
market/NN
leader/NN
for/IN
traditional/JJ
microprocessors/NNS
with/IN
its/PRP$
8086/CD
family/NN
that/WDT
forms/VBZ
the/DT
heart/NN
of/IN
IBM-compatible/JJ
personal/JJ
computers/NNS
./.
Under/IN
the/DT
agreement/NN
,/,
Intel/NNP
will/MD
invest/VB
$/$
3/CD
million/CD
to/TO
acquire/VB
a/DT
4/CD
%/NN
stake/NN
in/IN
Alliant/NNP
,/,
a/DT
maker/NN
of/IN
minisupercomputers/NNS
for/IN
scientists/NNS
and/CC
engineers/NNS
./.
Alliant/NNP
,/,
based/VBN
in/IN
Littleton/NNP
,/,
Mass./NNP
,/,
will/MD
license/VB
its/PRP$
parallel-computing/JJ
technologies/NNS
to/TO
Intel/NNP
,/,
providing/VBG
users/NNS
a/DT
way/NN
to/TO
let/VB
many/JJ
i860/NN
microprocessors/NNS
in/IN
a/DT
single/JJ
computer/NN
work/VB
on/IN
a/DT
problem/NN
simultaneously/RB
./.
Alliant/NNP
said/VBD
it/PRP
plans/VBZ
to/TO
use/VB
the/DT
microprocessor/NN
in/IN
future/JJ
products/NNS
./.
It/PRP
declined/VBD
to/TO
discuss/VB
its/PRP$
plans/NNS
for/IN
upgrading/VBG
its/PRP$
current/JJ
product/NN
line/NN
./.
Omnicare/NNP
Inc./NNP
,/,
which/WDT
intends/VBZ
to/TO
expand/VB
its/PRP$
position/NN
in/IN
the/DT
medical/JJ
and/CC
dental/JJ
markets/NNS
,/,
said/VBD
it/PRP
acquired/VBD
a/DT
cotton/NN
and/CC
gauze/NN
products/NNS
division/NN
from/IN
closely/RB
held/VBN
Sterile/NNP
Products/NNP
Corp./NNP
for/IN
$/$
8.2/CD
million/CD
./.
Omnicare/NNP
said/VBD
it/PRP
expects/VBZ
the/DT
division/NN
to/TO
add/VB
``/``
substantial/JJ
sales/NNS
volume/NN
and/CC
to/TO
make/VB
a/DT
positive/JJ
contribution/NN
to/TO
our/PRP$
earnings/NNS
in/IN
1990/CD
and/CC
beyond/IN
./.
''/''
In/IN
1988/CD
the/DT
Cincinnati/NNP
company/NN
earned/VBD
$/$
3.1/CD
million/CD
,/,
or/CC
32/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
148.5/CD
million/CD
./.
Omnicare/NNP
said/VBD
the/DT
division/NN
operates/VBZ
under/IN
the/DT
trade/NN
name/NN
ACCO/NNP
and/CC
supplies/VBZ
the/DT
medical/JJ
and/CC
dental/JJ
markets/NNS
./.
The/DT
business/NN
,/,
based/VBN
in/IN
St./NNP
Louis/NNP
,/,
had/VBD
sales/NNS
of/IN
more/JJR
than/IN
$/$
14/CD
million/CD
in/IN
the/DT
fiscal/JJ
year/NN
ended/VBN
March/NNP
31/CD
,/,
Omnicare/NNP
said/VBD
./.
Burmah/NNP
Oil/NNP
PLC/NNP
,/,
a/DT
British/NNP
independent/JJ
oil/NN
and/CC
specialty/NN
chemicals/NNS
marketing/NN
concern/NN
,/,
said/VBD
SHV/NNP
Holdings/NNP
N.V./NNP
of/IN
the/DT
Netherlands/NNP
has/VBZ
built/VBN
up/RP
a/DT
6.7/CD
%/NN
stake/NN
in/IN
the/DT
company/NN
./.
James/NNP
Alexander/NNP
,/,
a/DT
Burmah/NNP
spokesman/NN
,/,
said/VBD
SHV/NNP
had/VBD
previously/RB
owned/VBN
``/``
a/DT
little/JJ
under/IN
5/CD
%/NN
''/''
of/IN
Burmah/NNP
for/IN
about/RB
two/CD
years/NNS
./.
The/DT
Dutch/NNP
company/NN
had/VBD
n't/RB
notified/VBN
Burmah/NNP
of/IN
its/PRP$
reason/NN
for/IN
increasing/VBG
the/DT
stake/NN
,/,
he/PRP
said/VBD
./.
SHV/NNP
,/,
which/WDT
last/JJ
year/NN
merged/VBD
its/PRP$
North/NNP
Sea/NNP
oil/NN
and/CC
gas/NN
operations/NNS
with/IN
those/DT
of/IN
Calor/NNP
Group/NNP
PLC/NNP
,/,
has/VBZ
been/VBN
pegged/VBN
by/IN
speculators/NNS
as/IN
a/DT
possible/JJ
suitor/NN
for/IN
Burmah/NNP
Oil/NNP
in/IN
recent/JJ
weeks/NNS
./.
SHV/NNP
also/RB
owns/VBZ
40/CD
%/NN
of/IN
Calor/NNP
./.
Burmah/NNP
,/,
which/WDT
owns/VBZ
the/DT
Castrol/NNP
brand/NN
of/IN
lubricant/JJ
oils/NNS
,/,
reported/VBD
a/DT
17/CD
%/NN
rise/NN
in/IN
net/JJ
income/NN
to/TO
#/#
43.5/CD
million/CD
$/$
68.3/CD
million/CD
the/DT
first/JJ
half/NN
./.
J.P./NNP
Industries/NNP
Inc./NNP
said/VBD
it/PRP
signed/VBD
a/DT
definitive/JJ
agreement/NN
to/TO
sell/VB
its/PRP$
Builders/NNP
'/POS
Hardware/NNP
Group/NNP
to/TO
closely/RB
held/VBN
Nalcor/NNP
Inc./NNP
of/IN
Beverly/NNP
Hills/NNP
,/,
Calif/NNP
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
,/,
but/CC
a/DT
J.P./NNP
Industries/NNP
spokesman/NN
said/VBD
the/DT
amount/NN
J.P./NNP
Industries/NNP
will/MD
get/VB
for/IN
the/DT
group/NN
is/VBZ
``/``
a/DT
little/RB
better/RBR
than/IN
expected/VBN
by/IN
the/DT
marketplace/NN
,/,
and/CC
the/DT
marketplace/NN
had/VBD
been/VBN
expecting/VBG
$/$
25/CD
million/CD
to/TO
$/$
30/CD
million/CD
./.
''/''
The/DT
group/NN
consists/VBZ
of/IN
Weslock/NNP
Corp./NNP
and/CC
JPI/NNP
Modern/NNP
Inc/NNP
./.
J.P./NNP
Industries/NNP
,/,
which/WDT
is/VBZ
based/VBN
in/IN
Ann/NNP
Arbor/NNP
,/,
Mich./NNP
,/,
said/VBD
the/DT
sale/NN
completes/VBZ
a/DT
previously/RB
announced/VBN
program/NN
to/TO
divest/VB
itself/PRP
of/IN
its/PRP$
hardware/NN
and/CC
plumbing/NN
supplies/NNS
operations/NNS
./.
The/DT
company/NN
's/POS
remaining/JJ
business/NN
is/VBZ
the/DT
manufacture/NN
and/CC
sale/NN
of/IN
engine/NN
and/CC
transmissions/NNS
products/NNS
for/IN
industrial/JJ
and/CC
transportation/NN
applications/NNS
./.
Citing/VBG
a/DT
$/$
3.1/CD
million/CD
provision/NN
for/IN
doubtful/JJ
accounts/NNS
,/,
Dallas-based/JJ
National/NNP
Heritage/NNP
Inc./NNP
posted/VBD
a/DT
loss/NN
for/IN
its/PRP$
fourth/JJ
quarter/NN
ended/VBN
June/NNP
30/CD
./.
A/DT
unit/NN
of/IN
troubled/VBN
Southmark/NNP
Corp./NNP
,/,
the/DT
operator/NN
of/IN
nursing/NN
homes/NNS
and/CC
retirement/NN
centers/NNS
said/VBD
it/PRP
sustained/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
1.6/CD
million/CD
,/,
or/CC
nine/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
net/JJ
income/NN
of/IN
$/$
1.3/CD
million/CD
,/,
or/CC
eight/CD
cents/NNS
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Operating/NN
revenue/NN
rose/VBD
13/CD
%/NN
to/TO
$/$
22.2/CD
million/CD
from/IN
$/$
19.7/CD
million/CD
in/IN
the/DT
year-earlier/JJ
quarter/NN
./.
The/DT
company/NN
said/VBD
the/DT
$/$
3.1/CD
million/CD
reserve/NN
was/VBD
created/VBN
to/TO
reflect/VB
doubt/NN
about/IN
the/DT
collectability/NN
of/IN
receivables/NNS
owed/VBN
to/TO
National/NNP
Heritage/NNP
by/IN
some/DT
of/IN
the/DT
real/JJ
estate/NN
partnerships/NNS
it/PRP
manages/VBZ
./.
The/DT
company/NN
also/RB
said/VBD
expenses/NNS
incurred/VBN
by/IN
the/DT
previous/JJ
board/NN
and/CC
management/NN
in/IN
the/DT
recent/JJ
contest/NN
for/IN
control/NN
were/VBD
recognized/VBN
primarily/RB
in/IN
the/DT
first/JJ
quarter/NN
ended/VBN
Sept./NNP
30/CD
./.
National/NNP
Heritage/NNP
stock/NN
fell/VBD
12.5/CD
cents/NNS
yesterday/NN
to/TO
close/VB
at/IN
$/$
1.375/CD
a/DT
share/NN
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
United/NNP
Biscuits/NNP
Holdings/NNP
PLC/NNP
,/,
a/DT
British/JJ
food/NN
producer/NN
,/,
announced/VBD
the/DT
creation/NN
of/IN
a/DT
European/JJ
group/NN
to/TO
bring/VB
together/RB
its/PRP$
trading/NN
interests/NNS
in/IN
the/DT
region/NN
./.
The/DT
new/JJ
group/NN
will/MD
comprise/VB
all/DT
of/IN
United/NNP
Biscuit/NNP
's/POS
manufacturing/NN
and/CC
marketing/NN
operations/NNS
in/IN
the/DT
food/NN
sector/NN
apart/RB
from/IN
those/DT
based/VBN
in/IN
the/DT
U.S/NNP
./.
United/NNP
Biscuits/NNP
said/VBD
the/DT
combined/VBN
group/NN
,/,
which/WDT
will/MD
include/VB
businesses/NNS
such/JJ
as/IN
McVities/NNP
biscuits/NNS
and/CC
Terry/NNP
's/POS
confectionery/NN
,/,
will/MD
have/VB
annual/JJ
sales/NNS
of/IN
more/JJR
than/IN
#/#
1.5/CD
billion/CD
$/$
2.35/CD
billion/CD
trading/NN
profit/NN
of/IN
more/JJR
than/IN
#/#
160/CD
million/CD
$/$
251/CD
million/CD
``/``
The/DT
new/JJ
structure/NN
will/MD
enable/VB
United/NNP
Biscuits/NNP
to/TO
focus/VB
clearly/RB
upon/IN
opportunities/NNS
for/IN
planned/VBN
growth/NN
during/IN
the/DT
1990s/NNS
,/,
''/''
said/VBD
Bob/NNP
Clarke/NNP
,/,
deputy/JJ
chairman/NN
and/CC
group/NN
chief/JJ
executive/NN
./.
Last/JJ
month/NN
,/,
United/NNP
Biscuits/NNP
agreed/VBD
to/TO
sell/VB
its/PRP$
entire/JJ
restaurant/NN
operations/NNS
to/TO
Grand/NNP
Metropolitan/NNP
PLC/NNP
for/IN
#/#
180/CD
million/CD
./.
An/DT
American/JJ
journalist/NN
now/RB
is/VBZ
standing/VBG
trial/NN
in/IN
Namibia/NNP
./.
This/DT
is/VBZ
the/DT
place/NN
that/DT
world/NN
opinion/NN
has/VBZ
been/VBN
celebrating/VBG
over/IN
in/IN
the/DT
expectation/NN
that/IN
it/PRP
's/VBZ
going/VBG
to/TO
hold/VB
an/DT
election/NN
./.
The/DT
most/RBS
likely/JJ
winner/NN
will/MD
be/VB
the/DT
Marxist-dominated/JJ
SWAPO/NNP
rebels/NNS
./.
The/DT
U.S./NNP
journalist/NN
's/POS
``/``
crime/NN
''/''
was/VBD
writing/VBG
that/IN
the/DT
head/NN
of/IN
the/DT
commission/NN
charged/VBN
with/IN
overseeing/VBG
the/DT
election/NN
's/POS
fairness/NN
,/,
Bryan/NNP
O'Linn/NNP
,/,
was/VBD
openly/RB
sympathetic/JJ
to/TO
SWAPO/NNP
./.
Shortly/RB
after/IN
that/DT
,/,
Mr./NNP
O'Linn/NNP
had/VBD
Scott/NNP
Stanley/NNP
arrested/VBN
and/CC
his/PRP$
passport/NN
confiscated/VBN
./.
Mr./NNP
Stanley/NNP
is/VBZ
on/IN
trial/NN
over/IN
charges/NNS
that/IN
he/PRP
violated/VBD
a/DT
proclamation/NN
,/,
issued/VBN
by/IN
the/DT
South/JJ
African/JJ
administrator/NN
general/NN
earlier/RBR
this/DT
year/NN
,/,
which/WDT
made/VBD
it/PRP
a/DT
crime/NN
punishable/JJ
by/IN
two/CD
years/NNS
in/IN
prison/NN
for/IN
any/DT
person/NN
to/TO
``/``
insult/VB
,/,
disparate/JJ
or/CC
belittle/VB
''/''
the/DT
election/NN
commission/NN
./.
The/DT
Stanley/NNP
affair/NN
does/VBZ
n't/RB
bode/VB
well/RB
for/IN
the/DT
future/NN
of/IN
democracy/NN
or/CC
freedom/NN
of/IN
anything/NN
in/IN
Namibia/NNP
when/WRB
SWAPO/NNP
starts/VBZ
running/VBG
the/DT
government/NN
./.
To/TO
the/DT
extent/NN
Mr./NNP
Stanley/NNP
has/VBZ
done/VBN
anything/NN
wrong/JJ
,/,
it/PRP
may/MD
be/VB
that/IN
he/PRP
is/VBZ
out/IN
of/IN
step/NN
with/IN
the/DT
consensus/NN
of/IN
world/NN
intellectuals/NNS
that/IN
the/DT
Namibian/JJ
guerrillas/NNS
were/VBD
above/IN
all/DT
else/RB
the/DT
victims/NNS
of/IN
suppression/NN
by/IN
neighboring/JJ
South/NNP
Africa/NNP
./.
SWAPO/NNP
has/VBZ
enjoyed/VBN
favorable/JJ
Western/JJ
media/NNS
treatment/NN
ever/RB
since/IN
the/DT
U.N./NNP
General/NNP
Assembly/NNP
declared/VBD
it/PRP
the/DT
``/``
sole/JJ
,/,
authentic/JJ
representative/NN
''/''
of/IN
Namibia/NNP
's/POS
people/NNS
in/IN
Last/JJ
year/NN
,/,
the/DT
U.S./NNP
brokered/VBD
a/DT
peace/NN
settlement/NN
to/TO
remove/VB
Cuba/NNP
's/POS
``/``
Afrika/NNP
Korps/NNP
''/''
from/IN
Angola/NNP
and/CC
hold/VB
``/``
free/JJ
and/CC
fair/JJ
''/''
elections/NNS
that/WDT
would/MD
end/VB
South/NNP
Africa/NNP
's/POS
control/NN
of/IN
Namibia/NNP
./.
The/DT
elections/NNS
are/VBP
set/VBN
for/IN
Nov./NNP
7/CD
./.
In/IN
July/NNP
,/,
Mr./NNP
Stanley/NNP
,/,
editor/NN
of/IN
American/NNP
Press/NNP
International/NNP
,/,
a/DT
Washington/NNP
D.C.-based/JJ
conservative/JJ
wire/NN
service/NN
,/,
visited/VBD
Namibia/NNP
to/TO
report/VB
on/IN
the/DT
U.N.-monitored/JJ
election/NN
campaign/NN
./.
He/PRP
interviewed/VBD
Mr./NNP
O'Linn/NNP
,/,
head/NN
of/IN
a/DT
commission/NN
charged/VBN
with/IN
investigating/VBG
electoral/JJ
intimidation/NN
,/,
and/CC
reported/VBD
that/IN
Mr./NNP
O'Linn/NNP
was/VBD
openly/RB
sympathetic/JJ
to/TO
SWAPO/NNP
and/CC
indeed/RB
had/VBD
defended/VBN
its/PRP$
leaders/NNS
in/IN
court/NN
./.
After/IN
Mr./NNP
Stanley/NNP
's/POS
article/NN
was/VBD
published/VBN
in/IN
two/CD
Namibian/JJ
newspapers/NNS
,/,
Mr./NNP
O'Linn/NNP
had/VBD
criminal/JJ
charges/NNS
brought/VBN
against/IN
their/PRP$
editors/NNS
,/,
publisher/NN
and/CC
lawyer/NN
./.
Mr./NNP
Stanley/NNP
was/VBD
arrested/VBN
and/CC
charged/VBN
along/IN
with/IN
the/DT
others/NNS
when/WRB
he/PRP
returned/VBD
to/TO
Namibia/NNP
this/DT
month/NN
./.
Both/DT
the/DT
State/NNP
Department/NNP
and/CC
the/DT
Lawyers/NNP
Committee/NNP
for/IN
Freedom/NNP
of/IN
the/DT
Press/NNP
have/VBP
protested/VBN
Mr./NNP
Stanley/NNP
's/POS
detention/NN
./.
Mr./NNP
Stanley/NNP
's/POS
arrest/NN
is/VBZ
the/DT
latest/JJS
in/IN
a/DT
series/NN
of/IN
incidents/NNS
that/WDT
threaten/VBP
to/TO
derail/VB
Namibia/NNP
's/POS
elections/NNS
./.
Both/DT
South/NNP
African/NNP
and/CC
SWAPO/NNP
extremists/NNS
are/VBP
intimidating/VBG
voters/NNS
./.
The/DT
U.S./NNP
is/VBZ
in/IN
the/DT
habit/NN
of/IN
arranging/VBG
peace/NN
settlements/NNS
and/CC
then/RB
washing/VBG
its/PRP$
hands/NNS
over/IN
the/DT
tragic/JJ
results/NNS
./.
It/PRP
now/RB
has/VBZ
the/DT
chance/NN
to/TO
redress/VB
that/DT
record/NN
in/IN
Namibia/NNP
./.
State/NNP
and/CC
the/DT
human-rights/JJ
community/NN
should/MD
insist/VB
that/IN
Mr./NNP
Stanley/NNP
and/CC
his/PRP$
fellow/JJ
defendants/NNS
be/VB
released/VBN
and/CC
that/IN
the/DT
United/NNP
Nation/NNP
's/POS
monitors/NNS
make/VB
certain/JJ
that/IN
Mr./NNP
O'Linn's/NNP
commission/NN
investigates/VBZ
election/NN
complaints/NNS
from/IN
all/DT
sides/NNS
./.
Commodity/NN
futures/NNS
prices/NNS
generally/RB
reflected/VBD
the/DT
stability/NN
of/IN
the/DT
stock/NN
market/NN
following/VBG
its/PRP$
plunge/NN
Friday/NNP
./.
Yesterday/NN
,/,
the/DT
stock/NN
market/NN
's/POS
influence/NN
at/IN
first/JJ
created/VBD
nervousness/NN
./.
Later/RB
,/,
however/RB
,/,
it/PRP
became/VBD
more/JJR
of/IN
an/DT
undercurrent/NN
than/IN
a/DT
dominating/JJ
force/NN
as/IN
individual/JJ
markets/NNS
reacted/VBD
more/RBR
to/TO
their/PRP$
own/JJ
factors/NNS
./.
Gold/NNP
,/,
the/DT
traditional/JJ
haven/NN
in/IN
times/NNS
of/IN
financial/JJ
crisis/NN
,/,
continued/VBD
its/PRP$
inverse/JJ
lockstep/NN
with/IN
the/DT
dollar/NN
,/,
rising/VBG
early/RB
in/IN
the/DT
day/NN
as/IN
the/DT
currency/NN
fell/VBD
,/,
and/CC
then/RB
giving/VBG
up/RP
some/DT
of/IN
its/PRP$
gains/NNS
as/IN
the/DT
dollar/NN
recovered/VBD
./.
Copper/NN
and/CC
crude/NN
oil/NN
reacted/VBD
sharply/RB
to/TO
the/DT
concern/NN
that/IN
a/DT
crash/NN
yesterday/NN
could/MD
have/VB
a/DT
potentially/RB
devastating/VBG
effect/NN
on/IN
the/DT
economy/NN
./.
Copper/NNP
fell/VBD
and/CC
showed/VBD
little/JJ
rebound/NN
through/IN
the/DT
day/NN
as/IN
one/CD
of/IN
the/DT
major/JJ
supply/NN
problems/NNS
that/WDT
had/VBD
been/VBN
supporting/VBG
prices/NNS
appeared/VBD
to/TO
be/VB
solved/VBN
./.
Crude/JJ
oil/NN
declined/VBD
early/RB
,/,
but/CC
as/IN
the/DT
stock/NN
market/NN
retained/VBD
early/JJ
gains/NNS
,/,
it/PRP
,/,
too/RB
,/,
became/VBD
stronger/JJR
,/,
ending/VBG
with/IN
a/DT
small/JJ
net/NN
loss/NN
./.
Trading/NN
in/IN
cotton/NN
and/CC
sugar/NN
was/VBD
nervous/JJ
and/CC
showed/VBD
small/JJ
declines/NNS
./.
In/IN
Chicago/NNP
,/,
grain/NN
and/CC
soybean/NN
prices/NNS
rose/VBD
slightly/RB
./.
Livestock/NN
and/CC
meat/NN
prices/NNS
,/,
however/RB
,/,
dropped/VBD
on/IN
concern/NN
that/IN
a/DT
financial/JJ
crisis/NN
would/MD
cut/VB
consumption/NN
of/IN
beef/NN
and/CC
pork/NN
./.
In/IN
commodity/NN
markets/NNS
yesterday/NN
:/:
PRECIOUS/JJ
METALS/NNS
:/:
Futures/NNS
prices/NNS
were/VBD
moderately/RB
higher/JJR
as/IN
gold/NN
gave/VBD
up/RP
some/DT
of/IN
its/PRP$
early/JJ
gains/NNS
and/CC
platinum/NN
behaved/VBD
independently/RB
,/,
first/RB
falling/VBG
and/CC
then/RB
later/RBR
rising/VBG
./.
Silver/NN
performed/VBD
quietly/RB
./.
The/DT
spot/NN
October/NNP
gold/NN
price/NN
rose/VBD
$/$
4/CD
to/TO
$/$
367.30/CD
an/DT
ounce/NN
./.
The/DT
more/RBR
active/JJ
December/NNP
delivery/NN
gold/NN
settled/VBN
with/IN
a/DT
gain/NN
of/IN
$/$
3.90/CD
an/DT
ounce/NN
at/IN
$/$
371.20/CD
,/,
after/IN
trading/VBG
as/RB
high/JJ
as/IN
$/$
374/CD
./.
December/NNP
silver/NN
was/VBD
up/RB
2.3/CD
cents/NNS
an/DT
ounce/NN
at/IN
$/$
5.163/CD
./.
Platinum/NN
behaved/VBD
more/RBR
like/IN
an/DT
industrial/JJ
metal/NN
,/,
easing/VBG
early/RB
on/IN
concern/NN
over/IN
a/DT
possible/JJ
weaker/JJR
economy/NN
,/,
but/CC
recovering/VBG
later/RBR
,/,
as/IN
the/DT
stock/NN
market/NN
strengthened/VBD
./.
Gold/NNP
was/VBD
nowhere/RB
the/DT
spectacular/JJ
performer/JJ
it/PRP
was/VBD
two/CD
years/NNS
ago/RB
on/IN
Black/NNP
Monday/NNP
./.
For/IN
one/CD
thing/NN
,/,
last/JJ
Friday/NNP
,/,
precious/JJ
metals/NNS
markets/NNS
closed/VBD
before/IN
the/DT
stock/NN
market/NN
went/VBD
into/IN
its/PRP$
late-in-the-day/JJ
nose/NN
dive/NN
,/,
so/IN
it/PRP
could/MD
n't/RB
react/VB
to/TO
it/PRP
./.
Back/RB
on/IN
Friday/NNP
,/,
Oct./NNP
16/CD
,/,
l987/CD
,/,
the/DT
stock/NN
market/NN
declined/VBD
during/IN
the/DT
day/NN
,/,
and/CC
gold/JJ
prices/NNS
surged/VBD
as/IN
the/DT
stock/NN
market/NN
fell/VBD
./.
The/DT
October/NNP
1987/CD
contract/NN
that/DT
day/NN
rose/VBD
as/RB
much/RB
as/IN
$/$
8.70/CD
to/TO
as/RB
high/JJ
as/IN
$/$
471.60/CD
,/,
and/CC
the/DT
more/RBR
deferred/JJ
positions/NNS
,/,
due/JJ
to/TO
mature/VB
as/RB
late/RB
as/IN
March/NNP
1989/CD
,/,
rose/VBD
as/RB
much/RB
as/IN
$/$
9.60/CD
./.
On/IN
Black/NNP
Monday/NNP
,/,
Oct./NNP
19/CD
,/,
1987/CD
,/,
the/DT
October/NNP
contract/NN
tacked/VBD
on/IN
further/JJ
gains/NNS
,/,
rising/VBG
to/TO
as/RB
high/JJ
as/IN
$/$
491.50/CD
for/IN
a/DT
gain/NN
of/IN
almost/RB
$/$
20/CD
on/IN
top/NN
of/IN
the/DT
Friday/NNP
advances/NNS
,/,
before/IN
giving/VBG
up/RP
almost/RB
$/$
10/CD
of/IN
that/DT
at/IN
the/DT
close/NN
./.
Yesterday/NN
's/POS
October/NNP
gain/NN
of/IN
$/$
4/CD
was/VBD
miniscule/NN
compared/VBN
with/IN
that/DT
./.
One/CD
analyst/NN
,/,
Peter/NNP
Cardillo/NNP
of/IN
Josephthal/NNP
&/CC
Co./NNP
,/,
New/NNP
York/NNP
,/,
said/VBD
the/DT
gold/NN
market/NN
already/RB
had/VBD
some/DT
good/JJ
price-supporting/JJ
technical/JJ
factors/NNS
that/WDT
would/MD
have/VB
caused/VBN
prices/NNS
to/TO
rise/VB
,/,
with/IN
or/CC
without/IN
the/DT
stock/NN
market/NN
./.
``/``
What/WP
the/DT
stock/NN
market/NN
did/VBD
was/VBD
cause/VB
the/DT
rise/NN
to/TO
take/VB
place/NN
earlier/RBR
than/IN
it/PRP
would/MD
have/VB
happened/VBN
,/,
''/''
said/VBD
Mr./NNP
Cardillo/NNP
./.
There/EX
's/VBZ
a/DT
good/JJ
chance/NN
that/DT
gold/NN
will/MD
retain/VB
its/PRP$
gains/NNS
and/CC
rise/VB
further/RBR
,/,
he/PRP
said/VBD
./.
He/PRP
expects/VBZ
a/DT
drop/NN
in/IN
interest/NN
rates/NNS
,/,
which/WDT
would/MD
help/VB
gold/NN
by/IN
keeping/VBG
the/DT
dollar/NN
from/IN
rising/VBG
./.
Finally/RB
,/,
according/VBG
to/TO
Mr./NNP
Cardillo/NNP
,/,
the/DT
impact/NN
of/IN
the/DT
strong/JJ
dollar/NN
should/MD
be/VB
reflected/VBN
in/IN
reduced/VBN
exports/NNS
in/IN
the/DT
August/NNP
merchandise/NN
trade/NN
deficit/NN
,/,
when/WRB
the/DT
figures/NNS
are/VBP
released/VBN
today/NN
./.
This/DT
would/MD
be/VB
damaging/VBG
to/TO
the/DT
dollar/NN
and/CC
supportive/JJ
for/IN
gold/NN
,/,
he/PRP
said/VBD
./.
ENERGY/NNP
:/:
Worried/VBN
that/IN
Friday/NNP
's/POS
190-point/JJ
stock/NN
market/NN
plunge/NN
might/MD
be/VB
a/DT
harbinger/NN
of/IN
things/NNS
to/TO
come/VB
for/IN
the/DT
economy/NN
,/,
petroleum/NN
futures/NNS
traders/NNS
called/VBD
a/DT
halt/NN
to/TO
the/DT
recent/JJ
string/NN
of/IN
increases/NNS
in/IN
crude/JJ
oil/NN
futures/NNS
prices/NNS
./.
The/DT
U.S./NNP
benchmark/NN
crude/NN
,/,
West/NNP
Texas/NNP
Intermediate/NNP
,/,
closed/VBD
at/IN
$/$
20.59/CD
a/DT
barrel/NN
for/IN
November/NNP
delivery/NN
,/,
down/RB
30/CD
cents/NNS
./.
Some/DT
analysts/NNS
said/VBD
crude/NN
was/VBD
due/JJ
for/IN
a/DT
correction/NN
anyhow/RB
,/,
following/VBG
several/JJ
days/NNS
of/IN
significant/JJ
gains/NNS
./.
But/CC
most/JJS
market/NN
observers/NNS
agreed/VBD
that/IN
Friday/NNP
's/POS
stock/NN
market/NN
drop/NN
is/VBZ
what/WP
dampened/VBD
spirits/NNS
in/IN
the/DT
petroleum/NN
pits/NNS
yesterday/NN
./.
Until/IN
yesterday/NN
,/,
futures/NNS
prices/NNS
had/VBD
been/VBN
headed/VBN
up/RB
on/IN
expectations/NNS
that/IN
world/NN
oil/NN
demand/NN
will/MD
continue/VB
to/TO
be/VB
strong/JJ
./.
The/DT
Organization/NNP
of/IN
Petroleum/NNP
Exporting/NNP
Countries/NNP
increased/VBD
its/PRP$
production/NN
ceiling/NN
for/IN
the/DT
fourth/JJ
quarter/NN
based/VBN
on/IN
projections/NNS
of/IN
robust/JJ
demand/NN
./.
So/IN
any/DT
bearish/JJ
indicator/NN
,/,
such/JJ
as/IN
Friday/NNP
's/POS
precipitous/JJ
drop/NN
in/IN
the/DT
stock/NN
market/NN
,/,
sends/VBZ
shivers/NNS
through/IN
the/DT
oil/NN
markets/NNS
as/RB
well/RB
./.
Indeed/RB
,/,
after/IN
reacting/VBG
early/RB
in/IN
the/DT
trading/NN
day/NN
to/TO
Friday/NNP
's/POS
plummet/NN
,/,
futures/NNS
prices/NNS
firmed/VBD
up/RP
again/RB
as/IN
traders/NNS
took/VBD
note/NN
of/IN
the/DT
stock/NN
market/NN
's/POS
partial/JJ
recovery/NN
yesterday/NN
./.
COPPER/NN
:/:
Futures/NNS
prices/NNS
fell/VBD
and/CC
showed/VBD
little/JJ
rebound/NN
as/IN
one/CD
major/JJ
labor/NN
problem/NN
that/WDT
had/VBD
been/VBN
underpinning/VBG
prices/NNS
appeared/VBD
to/TO
be/VB
solved/VBN
./.
The/DT
December/NNP
contract/NN
declined/VBD
3.05/CD
cents/NNS
a/DT
pound/NN
to/TO
$/$
1.2745/CD
./.
Prices/NNS
were/VBD
down/RB
from/IN
the/DT
outset/NN
of/IN
trading/NN
on/IN
concern/NN
that/IN
a/DT
drop/NN
in/IN
the/DT
stock/NN
market/NN
might/MD
create/VB
a/DT
weakened/VBN
economy/NN
and/CC
a/DT
consequent/JJ
reduction/NN
in/IN
copper/NN
use/NN
./.
But/CC
the/DT
recovery/NN
in/IN
the/DT
stock/NN
market/NN
provided/VBD
little/JJ
help/NN
for/IN
copper/NN
as/IN
word/NN
spread/VBD
that/IN
a/DT
three-month/JJ
strike/NN
at/IN
the/DT
Highland/NNP
Valley/NNP
mine/NN
in/IN
British/NNP
Columbia/NNP
was/VBD
about/RB
over/RB
,/,
according/VBG
to/TO
an/DT
analyst/NN
./.
Highland/NNP
Valley/NNP
is/VBZ
a/DT
large/JJ
Canadian/JJ
producer/NN
and/CC
principal/JJ
supplier/NN
to/TO
Japan/NNP
,/,
which/WDT
recently/RB
began/VBD
seeking/VBG
copper/NN
elsewhere/RB
as/IN
its/PRP$
inventories/NNS
shrank/VBD
./.
Last/JJ
week/NN
it/PRP
was/VBD
reported/VBN
that/IN
company/NN
and/CC
union/NN
negotiations/NNS
had/VBD
overcome/VBN
the/DT
major/JJ
hurdle/NN
,/,
the/DT
contracting/NN
out/RP
of/IN
work/NN
by/IN
the/DT
company/NN
./.
Now/RB
,/,
the/DT
analyst/NN
said/VBD
,/,
only/RB
minor/JJ
points/NNS
remain/VBP
to/TO
be/VB
cleaned/VBN
up/RP
./.
``/``
For/IN
all/DT
intents/NNS
and/CC
purposes/NNS
,/,
an/DT
agreement/NN
appears/VBZ
to/TO
have/VB
been/VBN
achieved/VBN
,/,
''/''
he/PRP
said/VBD
./.
Copper/NN
inventories/NNS
in/IN
New/NNP
York/NNP
's/POS
Commodity/NNP
Exchange/NNP
warehouses/NNS
rose/VBD
yesterday/NN
by/IN
516/CD
tons/NNS
,/,
to/TO
10,004/CD
tons/NNS
./.
London/NNP
Metal/NNP
Exchange/NNP
copper/NN
inventories/NNS
last/JJ
week/NN
declined/VBD
13,575/CD
tons/NNS
,/,
to/TO
89,300/CD
tons/NNS
./.
The/DT
LME/NNP
stocks/NNS
decline/NN
was/VBD
about/RB
as/RB
expected/VBN
,/,
but/CC
the/DT
Comex/NNP
gain/NN
was/VBD
n't/RB
./.
However/RB
,/,
this/DT
was/VBD
brushed/VBN
aside/RB
by/IN
concern/NN
over/IN
the/DT
stock/NN
market/NN
,/,
the/DT
analyst/NN
said/VBD
./.
At/IN
one/CD
point/NN
in/IN
futures/NNS
trading/NN
,/,
as/IN
the/DT
stock/NN
market/NN
firmed/VBD
,/,
the/DT
December/NNP
contract/NN
rose/VBD
to/TO
as/RB
high/JJ
as/IN
$/$
1.2965/CD
,/,
but/CC
it/PRP
was/VBD
n't/RB
able/JJ
to/TO
sustain/VB
the/DT
gain/NN
./.
``/``
It/PRP
was/VBD
simply/RB
overbought/VBN
,/,
''/''
he/PRP
said/VBD
,/,
and/CC
selling/VBG
by/IN
funds/NNS
that/WDT
are/VBP
computer/NN
guided/VBN
helped/VBD
depress/VB
prices/NNS
./.
COTTON/NNP
:/:
Futures/NNS
prices/NNS
eased/VBD
,/,
more/RBR
in/IN
reaction/NN
to/TO
Hurricane/NNP
Jerry/NNP
than/IN
to/TO
any/DT
influence/NN
of/IN
the/DT
stock/NN
market/NN
./.
The/DT
December/NNP
contract/NN
ended/VBD
with/IN
a/DT
loss/NN
of/IN
0.22/CD
cent/NN
a/DT
pound/NN
,/,
at/IN
74.48/CD
cents/NNS
./.
Technical/JJ
considerations/NNS
following/VBG
the/DT
hurricane/NN
,/,
which/WDT
was/VBD
a/DT
factor/NN
in/IN
the/DT
market/NN
Friday/NNP
,/,
caused/VBD
prices/NNS
to/TO
decline/VB
yesterday/NN
,/,
said/VBD
Ernest/NNP
Simon/NNP
,/,
cotton/NN
specialist/NN
for/IN
Prudential-Bache/NNP
Securities/NNP
,/,
New/NNP
York/NNP
./.
Prices/NNS
rose/VBD
sharply/RB
Friday/NNP
as/IN
the/DT
storm/NN
approached/VBD
Texas/NNP
and/CC
Louisiana/NNP
,/,
which/WDT
is/VBZ
part/NN
of/IN
the/DT
Mississippi/NNP
Delta/NNP
cotton-growing/JJ
area/NN
./.
However/RB
,/,
after/IN
absorbing/VBG
the/DT
potential/JJ
effect/NN
of/IN
the/DT
hurricane/NN
,/,
prices/NNS
began/VBD
to/TO
slip/VB
late/JJ
Friday/NNP
,/,
Mr./NNP
Simon/NNP
said/VBD
./.
That/DT
selling/NN
continued/VBD
yesterday/NN
and/CC
kept/VBD
prices/NNS
under/IN
pressure/NN
,/,
he/PRP
said/VBD
./.
Colder/JJR
weather/NN
is/VBZ
being/VBG
predicted/VBN
for/IN
the/DT
high/JJ
plains/NNS
of/IN
Texas/NNP
and/CC
the/DT
northern/JJ
states/NNS
of/IN
the/DT
Delta/NNP
during/IN
the/DT
coming/VBG
weekend/NN
,/,
Mr./NNP
Simon/NNP
said/VBD
./.
That/DT
has/VBZ
n't/RB
yet/RB
captured/VBN
traders/NNS
'/POS
attention/NN
,/,
he/PRP
added/VBD
./.
SUGAR/NN
:/:
Futures/NNS
prices/NNS
declined/VBD
./.
The/DT
March/NNP
contract/NN
was/VBD
off/JJ
0.32/CD
cent/NN
a/DT
pound/NN
at/IN
13.97/CD
cents/NNS
./.
At/IN
one/CD
point/NN
in/IN
early/RB
trading/NN
the/DT
March/NNP
price/NN
rose/VBD
to/TO
as/RB
high/JJ
as/IN
14.22/CD
cents/NNS
when/WRB
the/DT
stock/NN
market/NN
recovered/VBN
,/,
but/CC
the/DT
price/NN
then/RB
fell/VBD
back/RB
./.
A/DT
price-depressing/JJ
factor/NN
,/,
one/CD
analyst/NN
said/VBD
,/,
was/VBD
that/IN
India/NNP
,/,
which/WDT
had/VBD
been/VBN
expected/VBN
to/TO
buy/VB
around/RB
200,000/CD
tons/NNS
of/IN
sugar/NN
in/IN
the/DT
world/NN
market/NN
,/,
did/VBD
n't/RB
make/VB
any/DT
purchases/NNS
./.
India/NNP
recently/RB
bought/VBD
200,000/CD
tons/NNS
and/CC
was/VBD
expected/VBN
to/TO
buy/VB
more/JJR
,/,
the/DT
analyst/NN
said/VBD
./.
Another/DT
analyst/NN
thought/VBD
that/IN
India/NNP
may/MD
have/VB
pulled/VBN
back/RB
because/IN
of/IN
the/DT
concern/NN
over/IN
the/DT
stock/NN
market/NN
./.
``/``
India/NNP
may/MD
have/VB
felt/VBD
that/IN
if/IN
there/EX
was/VBD
a/DT
severe/JJ
drop/NN
in/IN
the/DT
stock/NN
market/NN
and/CC
it/PRP
affected/VBD
sugar/NN
,/,
it/PRP
could/MD
buy/VB
at/IN
lower/JJR
prices/NNS
,/,
''/''
said/VBD
Judith/NNP
Ganes/NNP
,/,
analyst/NN
for/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
,/,
New/NNP
York/NNP
./.
At/IN
any/DT
rate/NN
,/,
she/PRP
added/VBD
,/,
``/``
India/NNP
needs/VBZ
the/DT
sugar/NN
,/,
so/IN
it/PRP
will/MD
be/VB
in/RB
sooner/RBR
or/CC
later/RBR
to/TO
buy/VB
it/PRP
./.
''/''
FARM/NN
PRODUCTS/NNS
:/:
The/DT
prices/NNS
of/IN
cattle/NNS
and/CC
hog/NN
futures/NNS
contracts/NNS
dropped/VBD
sharply/RB
because/IN
traders/NNS
speculated/VBD
that/IN
the/DT
stock/NN
market/NN
plunge/NN
Friday/NNP
will/MD
linger/VB
in/IN
the/DT
minds/NNS
of/IN
U.S./NNP
consumers/NNS
long/RB
enough/RB
to/TO
prompt/VB
them/PRP
to/TO
rein/VB
in/IN
their/PRP$
spending/NN
at/IN
the/DT
supermarket/NN
,/,
which/WDT
would/MD
hurt/VB
demand/NN
for/IN
beef/NN
and/CC
pork/NN
./.
The/DT
price/NN
of/IN
the/DT
hog/NN
contract/NN
for/IN
October/NNP
delivery/NN
dropped/VBD
its/PRP$
maximum/NN
permissible/JJ
daily/JJ
limit/NN
of/IN
1.5/CD
cents/NNS
a/DT
pound/NN
./.
The/DT
prices/NNS
of/IN
most/JJS
grain/NN
futures/NNS
contracts/NNS
rose/VBD
slightly/RB
yesterday/NN
out/IN
of/IN
relief/NN
that/IN
the/DT
stock/NN
market/NN
was/VBD
showing/VBG
signs/NNS
of/IN
recovering/VBG
./.
Earlier/RBR
in/IN
the/DT
session/NN
,/,
the/DT
prices/NNS
of/IN
several/JJ
soybean/NN
contracts/NNS
set/VBD
new/JJ
lows/NNS
./.
A/DT
broad/JJ
rally/NN
began/VBD
when/WRB
several/JJ
major/JJ
processors/NNS
began/VBD
buying/VBG
futures/NNS
contracts/NNS
,/,
apparently/RB
to/TO
take/VB
advantage/NN
of/IN
the/DT
price/NN
dip/NN
./.
Knight-Ridder/NNP
Inc./NNP
said/VBD
it/PRP
would/MD
report/VB
increased/VBN
earnings/NNS
per/IN
share/NN
for/IN
the/DT
third/JJ
quarter/NN
,/,
contrary/JJ
to/TO
reported/VBN
analysts/NNS
'/POS
comments/NNS
that/IN
the/DT
publishing/VBG
company/NN
's/POS
earnings/NNS
would/MD
be/VB
down/RB
./.
A/DT
company/NN
spokesman/NN
said/VBD
he/PRP
believed/VBD
the/DT
confusion/NN
was/VBD
caused/VBN
when/WRB
James/NNP
Batten/NNP
,/,
Knight-Ridder/NNP
's/POS
chairman/NN
and/CC
chief/JJ
executive/NN
,/,
told/VBD
New/NNP
York/NNP
analysts/NNS
two/CD
weeks/NNS
ago/RB
that/IN
Knight-Ridder/NNP
's/POS
earnings/NNS
per/IN
share/NN
for/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
1989/CD
would/MD
``/``
be/VB
behind/IN
a/DT
little/JJ
bit/NN
''/''
from/IN
like/JJ
period/NN
of/IN
The/DT
Knight-Ridder/NNP
spokesman/NN
said/VBD
the/DT
third-quarter/JJ
earnings/NNS
that/IN
the/DT
company/NN
plans/VBZ
to/TO
report/VB
Oct./NNP
24/CD
are/VBP
expected/VBN
to/TO
be/VB
up/RB
./.
The/DT
spokesman/NN
said/VBD
he/PRP
was/VBD
``/``
comfortable/JJ
''/''
with/IN
revised/VBN
analysts/NNS
'/POS
projections/NNS
that/IN
the/DT
company/NN
would/MD
report/VB
earnings/NNS
of/IN
between/IN
62/CD
cents/NNS
and/CC
64/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
the/DT
53/CD
cents/NNS
a/DT
share/NN
it/PRP
reported/VBD
for/IN
the/DT
1988/CD
third/JJ
quarter/NN
./.
Knight-Ridder/NNP
said/VBD
it/PRP
agreed/VBD
with/IN
estimates/NNS
that/IN
net/JJ
income/NN
for/IN
all/DT
of/IN
1989/CD
would/MD
be/VB
around/RB
$/$
2.86/CD
a/DT
share/NN
,/,
compared/VBN
with/IN
$/$
2.59/CD
a/DT
share/NN
a/DT
year/NN
earlier/RBR
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
yesterday/NN
,/,
Knight-Ridder/NNP
closed/VBD
at/IN
$/$
51.75/CD
,/,
down/RB
37.5/CD
cents/NNS
./.
DD/NNP
Acquisition/NNP
Corp./NNP
said/VBD
it/PRP
extended/VBD
its/PRP$
$/$
45-a-share/JJ
offer/NN
for/IN
Dunkin/NNP
'/''
Donuts/NNP
Inc./NNP
to/TO
Nov./NNP
1/CD
from/IN
yesterday/NN
./.
The/DT
offer/NN
has/VBZ
an/DT
indicated/VBN
value/NN
of/IN
$/$
268/CD
million/CD
./.
DD/NNP
Acquisition/NNP
is/VBZ
a/DT
partnership/NN
of/IN
Unicorp/NNP
Canada/NNP
Corp./NNP
's/POS
Kingsbridge/NNP
Capital/NNP
Group/NNP
unit/NN
and/CC
Cara/NNP
Operations/NNP
Ltd/NNP
./.
As/IN
previously/RB
reported/VBN
,/,
under/IN
the/DT
terms/NNS
of/IN
a/DT
confidentiality/NN
agreement/NN
with/IN
Dunkin/NNP
'/''
Donuts/NNP
,/,
the/DT
partners/NNS
agreed/VBD
to/TO
keep/VB
their/PRP$
offer/NN
open/JJ
until/IN
Nov./NNP
1/CD
,/,
and/CC
not/RB
to/TO
acquire/VB
any/DT
additional/JJ
shares/NNS
except/IN
through/IN
a/DT
tender/NN
offer/NN
expiring/VBG
on/IN
that/DT
date/NN
./.
DD/NNP
Acquisition/NNP
said/VBD
that/IN
it/PRP
already/RB
owns/VBZ
15/CD
%/NN
of/IN
the/DT
common/JJ
shares/NNS
of/IN
the/DT
doughnut/NN
shop/NN
chain/NN
and/CC
that/IN
as/RB
of/IN
the/DT
close/NN
of/IN
business/NN
Friday/NNP
an/DT
additional/JJ
11/CD
%/NN
had/VBD
been/VBN
tendered/VBN
to/TO
its/PRP$
offer/NN
./.
Dunkin/NNP
'/''
Donuts/NNP
is/VBZ
based/VBN
in/IN
Randolph/NNP
,/,
Mass/NNP
./.
Cara/NNP
Operations/NNP
,/,
a/DT
food/NN
services/NNS
concern/NN
,/,
and/CC
Unicorp/NNP
,/,
a/DT
holding/VBG
company/NN
with/IN
interests/NNS
in/IN
oil/NN
and/CC
natural/JJ
gas/NN
and/CC
financial/JJ
services/NNS
,/,
are/VBP
based/VBN
in/IN
Toronto/NNP
./.
Golden/NNP
West/NNP
Financial/NNP
Corp./NNP
,/,
riding/VBG
above/IN
the/DT
turbulence/NN
that/WDT
has/VBZ
troubled/VBN
most/JJS
of/IN
the/DT
thrift/NN
industry/NN
,/,
posted/VBD
a/DT
16/CD
%/NN
increase/NN
of/IN
third-quarter/JJ
earnings/NNS
to/TO
$/$
41.8/CD
millon/NN
,/,
or/CC
66/CD
cents/NNS
a/DT
share/NN
./.
The/DT
company/NN
earned/VBD
$/$
36/CD
million/CD
,/,
or/CC
57/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
year-ago/JJ
quarter/NN
./.
Herbert/NNP
M./NNP
Sandler/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
the/DT
Oakland/NNP
,/,
Calif./NNP
,/,
savings-and-loan/JJ
holding/VBG
company/NN
,/,
credited/VBD
the/DT
high/JJ
number/NN
of/IN
loans/NNS
added/VBN
to/TO
the/DT
company/NN
's/POS
portfolio/NN
over/IN
the/DT
last/JJ
12/CD
months/NNS
for/IN
broadening/VBG
its/PRP$
earning/NN
asset/NN
base/NN
and/CC
improving/VBG
profit/NN
performance/NN
./.
However/RB
,/,
the/DT
executive/NN
noted/VBD
that/IN
slackening/VBG
demand/NN
for/IN
new/JJ
mortgages/NNS
depressed/VBD
new/JJ
loan/NN
originations/NNS
to/TO
$/$
1/CD
billion/CD
,/,
30/CD
%/NN
below/IN
the/DT
same/JJ
period/NN
last/JJ
year/NN
./.
In/IN
savings/NN
activity/NN
,/,
Mr./NNP
Sandler/NNP
said/VBD
consumer/NN
deposits/NNS
have/VBP
enjoyed/VBN
a/DT
steady/JJ
increase/NN
throughout/IN
1989/CD
,/,
and/CC
topped/VBD
$/$
11/CD
billion/CD
at/IN
quarter/NN
's/POS
end/NN
for/IN
the/DT
first/JJ
time/NN
in/IN
the/DT
company/NN
's/POS
history/NN
./.
Deposit/NN
growth/NN
amounted/VBD
to/TO
$/$
393/CD
million/CD
,/,
more/RBR
than/IN
double/RB
the/DT
year-ago/JJ
figure/NN
./.
Whirlpool/NNP
Corp./NNP
,/,
Benton/NNP
Harbor/NNP
,/,
Mich./NNP
,/,
said/VBD
it/PRP
has/VBZ
developed/VBN
a/DT
process/NN
to/TO
recover/VB
environmentally/RB
harmful/JJ
chlorofluorocarbons/NNS
,/,
or/CC
CFCs/NNS
,/,
that/WDT
previously/RB
entered/VBD
the/DT
atmosphere/NN
during/IN
in-home/JJ
repair/NN
of/IN
refrigerators/NNS
and/CC
freezers/NNS
./.
The/DT
maker/NN
of/IN
home/NN
appliances/NNS
said/VBD
the/DT
process/NN
,/,
which/WDT
involves/VBZ
the/DT
use/NN
of/IN
a/DT
multilayer/JJ
plastic/NN
bag/NN
during/IN
repairs/NNS
to/TO
capture/VB
the/DT
gaseous/JJ
substance/NN
and/CC
transport/NN
it/PRP
to/TO
a/DT
recycling/VBG
center/NN
,/,
is/VBZ
already/RB
in/IN
use/NN
at/IN
a/DT
number/NN
of/IN
its/PRP$
service/NN
centers/NNS
,/,
and/CC
will/MD
be/VB
available/JJ
to/TO
all/DT
authorized/VBN
repair/NN
centers/NNS
by/IN
spring/NN
./.
Earlier/JJR
repairs/NNS
vented/VBD
the/DT
CFCs/NNS
out/IN
of/IN
the/DT
home/NN
through/IN
a/DT
hose/NN
directly/RB
into/IN
the/DT
atmosphere/NN
./.
CFCs/NNS
are/VBP
widely/RB
used/VBN
as/IN
solvents/NNS
,/,
coolants/NNS
and/CC
fire/NN
suppressants/NNS
./.
But/CC
their/PRP$
use/NN
has/VBZ
been/VBN
linked/VBN
to/TO
a/DT
potentially/RB
dangerous/JJ
depletion/NN
of/IN
the/DT
Earth/NNP
's/POS
ozone/NN
layer/NN
,/,
and/CC
a/DT
number/NN
of/IN
companies/NNS
are/VBP
seeking/VBG
to/TO
curtail/VB
use/NN
,/,
or/CC
at/IN
least/JJS
emission/NN
,/,
of/IN
the/DT
substance/NN
./.
Whirpool/NNP
said/VBD
,/,
``/``
We/PRP
see/VBP
this/DT
process/NN
as/IN
a/DT
small/JJ
but/CC
important/JJ
step/NN
toward/IN
eventual/JJ
elimination/NN
of/IN
CFC/NNP
use/NN
in/IN
appliance/NN
manufacture/NN
./.
''/''
Maxus/NNP
Energy/NNP
Corp./NNP
,/,
Dallas/NNP
,/,
said/VBD
it/PRP
discovered/VBD
a/DT
new/JJ
oil/NN
field/NN
northeast/NN
of/IN
its/PRP$
previously/RB
discovered/VBN
Intan/NNP
Field/NNP
in/IN
the/DT
southeast/JJ
Sumatra/NNP
area/NN
of/IN
Indonesia/NNP
./.
Maxus/NNP
said/VBD
it/PRP
did/VBD
n't/RB
run/VB
a/DT
production/NN
test/NN
on/IN
the/DT
three/CD
discovery/NN
wells/NNS
it/PRP
drilled/VBD
in/IN
the/DT
field/NN
,/,
which/WDT
is/VBZ
about/RB
1.6/CD
miles/NNS
from/IN
the/DT
Intan/NNP
Field/NNP
,/,
because/IN
the/DT
wells/NNS
are/VBP
similar/JJ
to/TO
others/NNS
drilled/VBN
at/IN
its/PRP$
Intan/NNP
and/CC
Widuri/NNP
fields/NNS
./.
However/RB
,/,
Maxus/NNP
said/VBD
it/PRP
believes/VBZ
the/DT
reserves/NNS
in/IN
the/DT
field/NN
are/VBP
about/RB
10/CD
million/CD
barrels/NNS
of/IN
oil/NN
./.
The/DT
Intan/NNP
Field/NNP
has/VBZ
estimated/VBN
reserves/NNS
of/IN
50/CD
million/CD
barrels/NNS
and/CC
the/DT
Widuri/NNP
Field/NNP
has/VBZ
estimated/VBN
reserves/NNS
of/IN
225/CD
million/CD
barrels/NNS
./.
Maxus/NNP
,/,
an/DT
independent/JJ
oil/NN
and/CC
gas/NN
concern/NN
,/,
is/VBZ
the/DT
operator/NN
and/CC
owns/VBZ
a/DT
56/CD
%/NN
interest/NN
in/IN
the/DT
new/JJ
field/NN
,/,
called/VBD
Northeast/NNP
Intan/NNP
./.
Other/JJ
interests/NNS
are/VBP
owned/VBN
by/IN
BP/NNP
Petroleum/NNP
Development/NNP
SES/NNP
Ltd./NNP
,/,
C./NNP
Itoh/NNP
Energy/NNP
Co./NNP
Ltd./NNP
,/,
Deminex/NNP
Sumatra/NNP
OEL/NNP
G.m.b/NNP
./.
H./NNP
,/,
Hispanoil/NNP
Sumatra/NNP
Production/NNP
Ltd./NNP
,/,
Hudbay/NNP
Oil/NNP
Indonesia/NNP
Ltd./NNP
,/,
Inpex/NNP
Sumatra/NNP
Co./NNP
Ltd./NNP
,/,
Lasmo/NNP
Sumatra/NNP
Ltd./NNP
,/,
Sunda/NNP
Shell/NNP
,/,
TCR/NNP
Sumat/NNP
A.G./NNP
and/CC
Warrior/NNP
Oil/NNP
Co/NNP
./.
The/DT
production-sharing/JJ
contract/NN
area/NN
is/VBZ
held/VBN
with/IN
Pertamina/NNP
,/,
the/DT
Indonesian/JJ
state/NN
oil/NN
company/NN
./.
Environmental/NNP
Systems/NNP
Co./NNP
said/VBD
it/PRP
is/VBZ
restating/VBG
its/PRP$
results/NNS
to/TO
reduce/VB
its/PRP$
reported/VBN
net/JJ
income/NN
for/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
its/PRP$
fiscal/JJ
year/NN
after/IN
discovering/VBG
it/PRP
took/VBD
tax/NN
credits/NNS
that/WDT
already/RB
had/VBD
been/VBN
taken/VBN
last/JJ
year/NN
./.
The/DT
Little/NNP
Rock/NNP
,/,
Ark./NNP
,/,
hazardous-waste/JJ
services/NNS
company/NN
said/VBD
the/DT
restatement/NN
will/MD
reduce/VB
its/PRP$
net/JJ
for/IN
the/DT
nine/CD
months/NNS
ended/VBN
July/NNP
31/CD
to/TO
$/$
2.5/CD
million/CD
,/,
or/CC
17/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
3.7/CD
million/CD
,/,
or/CC
26/CD
cents/NNS
a/DT
share/NN
./.
Net/JJ
for/IN
the/DT
third/JJ
quarter/NN
,/,
restated/VBN
,/,
is/VBZ
$/$
1.6/CD
million/CD
,/,
or/CC
10/CD
cents/NNS
a/DT
share/NN
./.
The/DT
company/NN
previously/RB
reported/VBN
net/JJ
of/IN
$/$
2.3/CD
million/CD
,/,
or/CC
15/CD
cents/NNS
a/DT
share/NN
./.
The/DT
company/NN
said/VBD
that/IN
for/IN
financial/JJ
reporting/NN
purposes/NNS
last/JJ
year/NN
it/PRP
took/VBD
tax/NN
credits/NNS
that/WDT
will/MD
be/VB
recognized/VBN
for/IN
tax/NN
purposes/NNS
this/DT
year/NN
./.
But/CC
because/IN
of/IN
confusion/NN
,/,
it/PRP
took/VBD
those/DT
credits/NNS
again/RB
in/IN
reporting/VBG
its/PRP$
results/NNS
through/IN
the/DT
first/JJ
nine/CD
months/NNS
./.
Jack/NNP
W./NNP
Forrest/NNP
,/,
Environmental/NNP
Systems/NNP
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
said/VBD
the/DT
change/NN
increases/VBZ
the/DT
company/NN
's/POS
effective/JJ
tax/NN
rate/NN
to/TO
about/RB
35/CD
%/NN
from/IN
20/CD
%/NN
./.
Memotec/NNP
Data/NNP
Inc./NNP
said/VBD
it/PRP
signed/VBD
a/DT
definitive/JJ
merger/NN
agreement/NN
with/IN
ISI/NNP
Systems/NNP
Inc./NNP
under/IN
which/WDT
Memotec/NNP
will/MD
acquire/VB
ISI/NNP
for/IN
$/$
20/CD
U.S/NNP
./.
a/DT
share/NN
,/,
or/CC
about/RB
$/$
130/CD
million/CD
,/,
in/IN
cash/NN
and/CC
securities/NNS
./.
In/IN
American/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
ISI/NNP
closed/VBD
up/RB
$/$
3.125/CD
at/IN
$/$
18.625/CD
./.
In/IN
Montreal/NNP
Exchange/NNP
trading/NN
,/,
Memotec/NNP
closed/VBD
unchanged/JJ
at/IN
10.625/CD
Canadian/JJ
dollars/NNS
US$/$
9.05/CD
Memotec/NNP
said/VBD
under/IN
the/DT
agreement/NN
,/,
ISI/NNP
,/,
a/DT
Braintree/NNP
,/,
Mass./NNP
,/,
provider/NN
of/IN
computer/NN
software/NN
and/CC
services/NNS
to/TO
the/DT
insurance/NN
industry/NN
,/,
will/MD
merge/VB
with/IN
a/DT
U.S./NNP
unit/NN
of/IN
Memotec/NNP
created/VBN
for/IN
that/DT
purpose/NN
./.
Memotec/NNP
is/VBZ
a/DT
Montreal-based/JJ
maker/NN
of/IN
telecommunications/NNS
products/NNS
and/CC
provider/NN
of/IN
telecommunications/NNS
and/CC
computer/NN
services/NNS
./.
Memotec/NNP
said/VBD
the/DT
agreement/NN
calls/VBZ
for/IN
it/PRP
to/TO
make/VB
a/DT
$/$
20-a-share/JJ
cash/NN
tender/NN
offer/NN
for/IN
all/DT
shares/NNS
outstanding/JJ
of/IN
ISI/NNP
./.
But/CC
it/PRP
said/VBD
Charles/NNP
Johnston/NNP
,/,
ISI/NNP
chairman/NN
and/CC
president/NN
,/,
agreed/VBD
to/TO
sell/VB
his/PRP$
60/CD
%/NN
stake/NN
in/IN
ISI/NNP
to/TO
Memotec/NNP
upon/IN
completion/NN
of/IN
the/DT
tender/NN
offer/NN
for/IN
a/DT
combination/NN
of/IN
cash/NN
,/,
Memotec/NNP
stock/NN
and/CC
debentures/NNS
./.
Memotec/NNP
said/VBD
the/DT
tender/NN
offer/NN
is/VBZ
conditioned/VBN
on/IN
,/,
among/IN
other/JJ
things/NNS
,/,
holders/NNS
tendering/VBG
at/IN
least/JJS
15/CD
%/NN
of/IN
the/DT
shares/NNS
outstanding/JJ
,/,
other/JJ
than/IN
the/DT
shares/NNS
held/VBN
by/IN
Mr./NNP
Johnston/NNP
./.
ISI/NNP
said/VBD
its/PRP$
board/NN
has/VBZ
instructed/VBN
management/NN
to/TO
accept/VB
inquiries/NNS
from/IN
any/DT
others/NNS
interested/VBN
in/IN
making/VBG
a/DT
bid/NN
./.
ISI/NNP
said/VBD
it/PRP
can/MD
withdraw/VB
from/IN
the/DT
merger/NN
agreement/NN
with/IN
Memotec/NNP
if/IN
a/DT
better/JJR
bid/NN
surfaces/VBZ
./.
CMS/NNP
Energy/NNP
Corp./NNP
,/,
Jackson/NNP
,/,
Mich./NNP
,/,
said/VBD
it/PRP
has/VBZ
resumed/VBN
the/DT
purchase/NN
of/IN
its/PRP$
common/JJ
stock/NN
under/IN
a/DT
program/NN
approved/VBN
by/IN
its/PRP$
directors/NNS
in/IN
1987/CD
./.
At/IN
the/DT
time/NN
of/IN
the/DT
original/JJ
announcement/NN
,/,
CMS/NNP
said/VBD
its/PRP$
board/NN
authorized/VBD
the/DT
purchase/NN
of/IN
as/RB
many/JJ
as/IN
five/CD
million/CD
of/IN
its/PRP$
shares/NNS
./.
A/DT
spokesman/NN
said/VBD
2.6/CD
million/CD
shares/NNS
have/VBP
been/VBN
purchased/VBN
since/IN
then/RB
./.
The/DT
company/NN
said/VBD
it/PRP
will/MD
buy/VB
additional/JJ
shares/NNS
``/``
from/IN
time/NN
to/TO
time/NN
in/IN
the/DT
open/JJ
market/NN
or/CC
in/IN
private/JJ
transactions/NNS
at/IN
prevailing/VBG
market/NN
prices/NNS
./.
''/''
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
CMS/NNP
Energy/NNP
closed/VBD
at/IN
$/$
34.375/CD
a/DT
share/NN
,/,
down/RB
62.5/CD
cents/NNS
,/,
from/IN
the/DT
closing/VBG
price/NN
of/IN
$/$
37.375/CD
a/DT
share/NN
on/IN
Thursday/NNP
,/,
before/IN
Friday/NNP
's/POS
plunge/NN
./.
The/DT
utility/NN
company/NN
currently/RB
has/VBZ
about/RB
82.1/CD
million/CD
shares/NNS
outstanding/JJ
./.
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
will/MD
act/VB
as/IN
the/DT
exclusive/JJ
broker/NN
for/IN
the/DT
repurchase/NN
./.
Hughes/NNP
Aircraft/NNP
Co./NNP
,/,
a/DT
unit/NN
of/IN
General/NNP
Motors/NNP
Corp./NNP
,/,
said/VBD
it/PRP
agreed/VBD
to/TO
purchase/VB
the/DT
Electro-Optics/NNP
Technology/NNP
division/NN
of/IN
Perkin-Elmer/NNP
Corp/NNP
./.
Terms/NNS
of/IN
the/DT
agreement/NN
were/VBD
n't/RB
disclosed/VBN
./.
But/CC
for/IN
the/DT
fiscal/JJ
year/NN
ended/VBN
July/NNP
31/CD
,/,
1988/CD
,/,
the/DT
most/RBS
recent/JJ
period/NN
for/IN
which/WDT
results/NNS
were/VBD
broken/VBN
out/RP
,/,
the/DT
Perkin-Elmer/NNP
unit/NN
accounted/VBD
for/IN
more/JJR
than/IN
half/PDT
the/DT
$/$
145/CD
million/CD
in/IN
sales/NNS
recorded/VBN
by/IN
the/DT
company/NN
's/POS
government/NN
systems/NNS
sector/NN
./.
Perkin-Elmer/NNP
,/,
which/WDT
is/VBZ
based/VBN
in/IN
Norwalk/NNP
,/,
Conn./NNP
,/,
said/VBD
the/DT
sale/NN
of/IN
the/DT
Danbury/NNP
,/,
Conn./NNP
,/,
unit/NN
is/VBZ
consistent/JJ
with/IN
its/PRP$
restructuring/VBG
strategy/NN
announced/VBD
in/IN
April/NNP
./.
In/IN
addition/NN
to/TO
making/VBG
electro-optical/JJ
systems/NNS
,/,
the/DT
unit/NN
also/RB
makes/VBZ
laser/NN
warning/NN
receivers/NNS
./.
These/DT
are/VBP
used/VBN
aboard/IN
military/JJ
helicopters/NNS
to/TO
warn/VB
pilots/NNS
that/IN
a/DT
laser/NN
weapon/NN
has/VBZ
been/VBN
focused/VBN
on/IN
them/PRP
./.
Hughes/NNP
of/IN
Los/NNP
Angeles/NNP
said/VBD
the/DT
PerkinElmer/NNP
unit/NN
's/POS
work/NN
complements/VBZ
efforts/NNS
by/IN
its/PRP$
Electro-Optical/NNP
and/CC
Data/NNP
Systems/NNP
group/NN
,/,
which/WDT
makes/VBZ
infrared/JJ
sensors/NNS
,/,
military/JJ
lasers/NNS
and/CC
night/NN
vision/NN
equipment/NN
./.
Hughes/NNP
said/VBD
it/PRP
expects/VBZ
the/DT
sale/NN
to/TO
close/VB
by/IN
year/NN
end/NN
./.
The/DT
Communications/NNP
Workers/NNP
of/IN
America/NNP
ratified/VBD
a/DT
new/JJ
regional/JJ
contract/NN
and/CC
all/DT
but/CC
one/CD
of/IN
the/DT
local/JJ
agreements/NNS
with/IN
Bell/NNP
Atlantic/NNP
Corp/NNP
./.
CWA/NNP
's/POS
New/NNP
Jersey/NNP
Commercial/NNP
local/NN
,/,
which/WDT
represents/VBZ
about/RB
2,500/CD
service/NN
representatives/NNS
and/CC
marketing/NN
employees/NNS
,/,
rejected/VBD
the/DT
tentative/JJ
agreement/NN
./.
Both/DT
the/DT
union/NN
and/CC
the/DT
regional/JJ
telephone/NN
company/NN
said/VBD
they/PRP
were/VBD
working/VBG
together/RB
to/TO
resolve/VB
differences/NNS
./.
The/DT
new/JJ
three-year/JJ
contracts/NNS
,/,
which/WDT
replace/VBP
ones/NNS
that/WDT
expired/VBD
Aug./NNP
5/CD
,/,
cover/VBP
41,000/CD
Bell/NNP
Atlantic/NNP
employees/NNS
./.
The/DT
ratification/NN
follows/VBZ
a/DT
23-day/JJ
strike/NN
against/IN
the/DT
Philadelphia-based/JJ
company/NN
./.
Meanwhile/RB
,/,
CWA/NNP
and/CC
International/NNP
Brotherhood/NNP
of/IN
Electrical/NNP
Workers/NNP
members/NNS
remain/VBP
on/IN
strike/NN
against/IN
Nynex/NNP
Corp./NNP
,/,
the/DT
New/NNP
York-based/JJ
regional/JJ
phone/NN
company/NN
./.
The/DT
unions/NNS
and/CC
the/DT
company/NN
last/JJ
week/NN
agreed/VBD
to/TO
mediation/NN
./.
The/DT
CWA/NNP
represents/VBZ
40,000/CD
Nynex/NNP
workers/NNS
and/CC
the/DT
IBEW/NNP
represents/VBZ
20,000/CD
workers/NNS
./.
For/IN
the/DT
moment/NN
,/,
at/IN
least/JJS
,/,
euphoria/NN
has/VBZ
replaced/VBN
anxiety/NN
on/IN
Wall/NNP
Street/NNP
./.
The/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
jumped/VBD
sharply/RB
yesterday/NN
to/TO
close/VB
at/IN
2657.38/CD
,/,
panic/NN
did/VBD
n't/RB
sweep/VB
the/DT
world/NN
's/POS
markets/NNS
,/,
and/CC
investors/NNS
large/JJ
and/CC
small/JJ
seemed/VBD
to/TO
accept/VB
Friday/NNP
's/POS
dizzying/VBG
190-point/JJ
plunge/NN
as/IN
a/DT
sharp/JJ
correction/NN
,/,
not/RB
a/DT
calamity/NN
./.
Many/JJ
went/VBD
bargain-hunting/NN
./.
Among/IN
those/DT
sighing/VBG
with/IN
relief/NN
was/VBD
John/NNP
H./NNP
Gutfreund/NNP
,/,
chairman/NN
of/IN
Salomon/NNP
Brothers/NNP
,/,
who/WP
took/VBD
to/TO
the/DT
firm/NN
's/POS
trading/NN
floor/NN
to/TO
monitor/VB
yesterday/NN
's/POS
events/NNS
./.
As/IN
the/DT
rally/NN
gained/VBD
strength/NN
at/IN
3:15/CD
p.m./NN
,/,
he/PRP
smiled/VBD
broadly/RB
,/,
brandished/VBD
his/PRP$
unlit/NN
cigar/NN
and/CC
slapped/VBD
Stanley/NNP
Shopkorn/NNP
,/,
his/PRP$
top/JJ
stock/NN
trader/NN
,/,
on/IN
the/DT
back/NN
./.
At/IN
first/JJ
,/,
it/PRP
seemed/VBD
as/IN
if/IN
history/NN
might/MD
repeat/VB
itself/PRP
./.
As/IN
trading/NN
opened/VBD
yesterday/NN
morning/NN
on/IN
the/DT
Big/NNP
Board/NNP
,/,
stocks/NNS
of/IN
many/JJ
of/IN
the/DT
nation/NN
's/POS
biggest/JJS
companies/NNS
could/MD
n't/RB
open/VB
for/IN
trading/NN
because/IN
a/DT
wave/NN
of/IN
sell/NN
orders/NNS
was/VBD
overwhelming/VBG
buyers/NNS
./.
By/IN
10:10/CD
,/,
the/DT
Dow/NNP
Industrials/NNP
were/VBD
off/JJ
63.52/CD
points/NNS
,/,
and/CC
the/DT
stock/NN
of/IN
UAL/NNP
Corp./NNP
,/,
whose/WP$
troubles/NNS
had/VBD
kicked/VBN
off/RP
Friday/NNP
's/POS
plunge/NN
,/,
still/RB
had/VBD
n't/RB
opened/VBN
./.
But/CC
then/RB
,/,
as/RB
quickly/RB
as/IN
the/DT
Dow/NNP
had/VBD
fallen/VBN
,/,
it/PRP
began/VBD
to/TO
turn/VB
around/RP
./.
It/PRP
ended/VBD
with/IN
a/DT
gain/NN
of/IN
88.12/CD
points/NNS
./.
By/IN
the/DT
market/NN
's/POS
close/NN
,/,
volume/NN
on/IN
the/DT
New/NNP
York/NNP
exchange/NN
totaled/VBD
more/JJR
than/IN
416/CD
million/CD
,/,
the/DT
fourth/JJ
highest/JJS
on/IN
record/NN
./.
The/DT
Big/NNP
Board/NNP
handled/VBD
the/DT
huge/JJ
volume/NN
without/IN
any/DT
obvious/JJ
strain/NN
,/,
in/IN
sharp/JJ
contrast/NN
to/TO
Black/NNP
Monday/NNP
of/IN
1987/CD
./.
But/CC
the/DT
rally/NN
was/VBD
largely/RB
confined/VBN
to/TO
the/DT
blue-chip/JJ
stocks/NNS
,/,
which/WDT
had/VBD
been/VBN
hard/RB
hit/VBN
during/IN
Friday/NNP
's/POS
selling/NN
frenzy/NN
./.
Overall/JJ
,/,
more/JJR
Big/NNP
Board/NNP
stocks/NNS
lost/VBD
money/NN
than/IN
gained/VBN
./.
And/CC
many/JJ
arbitragers/NNS
,/,
already/RB
reeling/VBG
from/IN
Friday/NNP
's/POS
collapse/NN
of/IN
the/DT
UAL/NNP
deal/NN
,/,
were/VBD
further/RBR
hurt/VBN
yesterday/NN
when/WRB
a/DT
proposed/VBN
takeover/NN
of/IN
AMR/NNP
Corp./NNP
,/,
the/DT
parent/NN
of/IN
American/NNP
Airlines/NNP
,/,
collapsed/VBD
./.
Indeed/RB
,/,
the/DT
Dow/NNP
Jones/NNP
Transportation/NNP
Average/NNP
plunged/VBD
102.06/CD
points/NNS
,/,
its/PRP$
second-worst/JJ
drop/NN
in/IN
history/NN
./.
World-wide/JJ
,/,
trading/NN
was/VBD
generally/RB
manageable/JJ
./.
The/DT
Frankfurt/NNP
stock/NN
exchange/NN
was/VBD
hardest/RBS
hit/VBN
of/IN
the/DT
major/JJ
markets/NNS
,/,
with/IN
blue/JJ
chips/NNS
there/RB
falling/VBG
12.8/CD
%/NN
./.
In/IN
London/NNP
,/,
a/DT
midday/NN
rally/NN
left/VBD
the/DT
market/NN
's/POS
major/JJ
index/NN
off/IN
3.2/CD
%/NN
,/,
and/CC
Tokyo/NNP
's/POS
leading/VBG
stock/NN
index/NN
fell/VBD
only/RB
1.8/CD
%/NN
in/IN
surprisingly/RB
lackluster/NN
trading/NN
./.
Other/JJ
,/,
more/RBR
thinly/RB
traded/VBN
Asian/JJ
markets/NNS
were/VBD
hit/VBN
harder/RBR
than/IN
Tokyo/NNP
's/POS
,/,
but/CC
there/EX
were/VBD
no/DT
free-fall/JJ
declines/NNS
./.
Investors/NNS
big/JJ
and/CC
small/JJ
say/VBP
they/PRP
learned/VBD
valuable/JJ
lessons/NNS
since/IN
the/DT
1987/CD
crash/NN
:/:
In/IN
this/DT
age/NN
of/IN
computerized/VBN
trading/NN
,/,
huge/JJ
corrections/NNS
or/CC
runups/NNS
in/IN
a/DT
few/JJ
hours/NNS
'/POS
time/NN
must/MD
be/VB
expected/VBN
./.
What/WP
's/VBZ
more/JJR
,/,
such/JJ
short-term/JJ
cataclysms/NNS
are/VBP
survivable/JJ
and/CC
are/VBP
no/DT
cause/NN
for/IN
panic/NN
selling/NN
./.
Stephen/NNP
Boesel/NNP
,/,
a/DT
major/JJ
money/NN
manager/NN
for/IN
T./NNP
Rowe/NNP
Price/NNP
in/IN
Baltimore/NNP
,/,
says/VBZ
,/,
``/``
There/EX
was/VBD
less/JJR
panic/NN
than/IN
in/IN
1987/CD
:/:
We/PRP
had/VBD
been/VBN
through/IN
it/PRP
once/RB
./.
''/''
In/IN
Somerset/NNP
,/,
Wis./NNP
,/,
Adrian/NNP
Sween/NNP
,/,
who/WP
owns/VBZ
a/DT
supplier/NN
of/IN
nursing-home/NN
equipment/NN
and/CC
is/VBZ
n't/RB
active/JJ
in/IN
the/DT
stock/NN
market/NN
,/,
agrees/VBZ
./.
``/``
I/PRP
look/VBP
at/IN
it/PRP
as/IN
a/DT
ho-hum/JJ
matter/NN
,/,
''/''
he/PRP
says/VBZ
./.
Many/JJ
other/JJ
factors/NNS
played/VBD
a/DT
part/NN
in/IN
yesterday/NN
's/POS
comeback/NN
./.
The/DT
Federal/NNP
Reserve/NNP
signaled/VBD
its/PRP$
willingness/NN
to/TO
provide/VB
liquidity/NN
;/:
the/DT
interest/NN
rate/NN
on/IN
its/PRP$
loans/NNS
to/TO
major/JJ
banks/NNS
inched/VBD
downward/RB
early/JJ
in/IN
the/DT
day/NN
./.
Foreign/JJ
stock/NN
markets/NNS
,/,
which/WDT
kicked/VBD
off/RP
Black/NNP
Monday/NNP
with/IN
a/DT
huge/JJ
selling/NN
spree/NN
,/,
began/VBD
the/DT
day/NN
off/JJ
by/IN
relatively/RB
modest/JJ
amounts/NNS
./.
The/DT
dollar/NN
,/,
after/IN
falling/VBG
sharply/RB
in/IN
overnight/JJ
trading/NN
to/TO
139.10/CD
yen/NNS
,/,
bounced/VBD
back/RB
strongly/RB
to/TO
141.8/CD
,/,
thus/RB
easing/VBG
fears/NNS
that/IN
foreigners/NNS
would/MD
unload/VB
U.S./NNP
stocks/NNS
./.
And/CC
the/DT
widely/RB
disseminated/VBN
opinion/NN
among/IN
most/JJS
market/NN
experts/NNS
that/IN
a/DT
crash/NN
was/VBD
n't/RB
in/IN
store/NN
also/RB
helped/VBD
calm/VB
investors/NNS
./.
Many/JJ
major/JJ
institutions/NNS
,/,
for/IN
example/NN
,/,
came/VBD
into/IN
work/NN
yesterday/NN
ready/JJ
to/TO
buy/VB
some/DT
of/IN
the/DT
blue/JJ
chips/NNS
they/PRP
felt/VBD
had/VBD
been/VBN
sharply/RB
undervalued/VBN
on/IN
Friday/NNP
./.
Still/RB
,/,
amid/IN
all/DT
the/DT
backslapping/VBG
and/CC
signs/NNS
of/IN
relief/NN
over/IN
yesterday/NN
's/POS
events/NNS
,/,
some/DT
market/NN
professionals/NNS
cautioned/VBD
that/IN
there/EX
is/VBZ
nothing/NN
present/JJ
in/IN
the/DT
current/JJ
market/NN
system/NN
to/TO
prevent/VB
another/DT
dizzying/JJ
drop/NN
such/JJ
as/IN
Friday/NNP
's/POS
./.
``/``
There/EX
is/VBZ
too/RB
much/JJ
complacency/NN
,/,
''/''
says/VBZ
money/NN
manager/NN
Barry/NNP
Schrager/NNP
./.
Computers/NNS
have/VBP
increasingly/RB
connected/JJ
securities/NNS
markets/NNS
world-wide/JJ
,/,
so/RB
that/IN
a/DT
buying/NN
or/CC
selling/NN
wave/NN
in/IN
one/CD
market/NN
is/VBZ
often/RB
passed/VBN
around/IN
the/DT
globe/NN
./.
So/RB
investors/NNS
everywhere/RB
nervously/RB
eyed/VBD
yesterday/NN
's/POS
opening/NN
in/IN
Tokyo/NNP
,/,
where/WRB
the/DT
Nikkei/NNP
average/NN
of/IN
225/CD
blue-chip/JJ
stocks/NNS
got/VBD
off/RP
to/TO
a/DT
rocky/JJ
start/NN
./.
The/DT
average/NN
plunged/VBD
some/DT
600/CD
points/NNS
,/,
or/CC
1.7/CD
%/NN
,/,
in/IN
the/DT
first/JJ
20/CD
minutes/NNS
of/IN
trading/NN
./.
But/CC
the/DT
selling/NN
wave/NN
had/VBD
no/DT
conviction/NN
,/,
and/CC
the/DT
market/NN
first/RB
surged/VBD
upward/RB
by/IN
200/CD
points/NNS
,/,
then/RB
drifted/VBD
lower/RBR
,/,
closing/VBG
down/RB
647/CD
./.
Unlike/IN
two/CD
years/NNS
ago/RB
,/,
most/JJS
of/IN
Japan/NNP
's/POS
major/JJ
investors/NNS
chose/VBD
to/TO
sit/VB
this/DT
calamity/NN
out/RP
./.
In/IN
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
's/POS
Tokyo/NNP
trading/NN
room/NN
,/,
some/DT
40/CD
traders/NNS
and/CC
assistants/NNS
sat/VBD
quietly/RB
,/,
with/IN
few/JJ
orders/NNS
to/TO
process/NN
./.
Clients/NNS
``/``
are/VBP
all/DT
staying/VBG
out/IN
''/''
of/IN
the/DT
market/NN
,/,
one/CD
Merrill/NNP
trader/NN
says/VBZ
./.
The/DT
relative/JJ
calm/NN
in/IN
Tokyo/NNP
proved/VBD
little/JJ
comfort/NN
to/TO
markets/NNS
opening/VBG
up/RP
in/IN
Europe/NNP
./.
Frankfurt/NNP
's/POS
opening/NN
was/VBD
delayed/VBN
a/DT
half/JJ
hour/NN
because/IN
of/IN
a/DT
crush/NN
of/IN
sell/NN
orders/NNS
./.
``/``
The/DT
beginning/NN
was/VBD
chaotic/JJ
,/,
''/''
says/VBZ
Nigel/NNP
Longley/NNP
,/,
a/DT
broker/NN
for/IN
Commerzbank/NNP
In/IN
London/NNP
,/,
the/DT
view/NN
from/IN
the/DT
trading/NN
floor/NN
of/IN
an/DT
American/JJ
securities/NNS
firm/NN
,/,
Jefferies/NNP
&/CC
Co./NNP
,/,
also/RB
was/VBD
troubling/JJ
./.
A/DT
computer/NN
screen/NN
displaying/VBG
100/CD
blue-chip/JJ
stocks/NNS
colors/NNS
each/DT
one/CD
red/NN
when/WRB
its/PRP$
price/NN
is/VBZ
falling/VBG
./.
The/DT
screen/NN
was/VBD
a/DT
sea/NN
of/IN
red/NN
./.
``/``
I/PRP
see/VBP
concern/NN
,/,
but/CC
I/PRP
do/VBP
n't/RB
see/VB
panic/NN
,/,
''/''
says/VBZ
J./NNP
Francis/NNP
Palamara/NNP
,/,
a/DT
New/NNP
Yorker/NNP
who/WP
runs/VBZ
the/DT
15-trader/JJ
office/NN
./.
London/NNP
's/POS
blue-chip/JJ
stock/NN
index/NN
turned/VBD
up/RB
just/RB
before/IN
8/CD
a.m/NN
./.
New/NNP
York/NNP
time/NN
,/,
sending/VBG
an/DT
encouraging/JJ
message/NN
to/TO
Wall/NNP
Street/NNP
./.
When/WRB
trading/NN
opened/VBD
in/IN
New/NNP
York/NNP
at/IN
9:30/CD
a.m./NN
EDT/NNP
,/,
stocks/NNS
fell/VBD
sharply/RB
--/:
as/IN
expected/VBN
./.
Futures/NNS
markets/NNS
in/IN
Chicago/NNP
had/VBD
opened/VBN
at/IN
a/DT
level/NN
suggesting/VBG
the/DT
Dow/NNP
would/MD
fall/VB
by/IN
about/RB
60/CD
points/NNS
./.
With/IN
sell/NN
orders/NNS
piled/VBD
up/RP
from/IN
Friday/NNP
,/,
about/RB
half/PDT
the/DT
stocks/NNS
in/IN
the/DT
Dow/NNP
could/MD
n't/RB
open/VB
on/IN
time/NN
./.
By/IN
9:45/CD
,/,
the/DT
industrial/JJ
average/NN
had/VBD
dropped/VBN
27/CD
points/NNS
./.
By/IN
10/CD
a.m./NN
,/,
it/PRP
was/VBD
down/RB
49/CD
./.
Ten/CD
minutes/NNS
later/RBR
,/,
the/DT
Dow/NNP
hit/VBD
bottom/NN
-/:
down/RB

63.52/CD
points/NNS
,/,
another/DT
2.5/CD
%/NN
./.
But/CC
shortly/RB
before/IN
then/RB
,/,
some/DT
of/IN
Wall/NNP
Street/NNP
's/POS
sharpest/JJS
traders/NNS
say/VBP
,/,
they/PRP
sensed/VBD
a/DT
turn/NN
./.
``/``
The/DT
first/JJ
thing/NN
that/WDT
caught/VBD
my/PRP$
eye/NN
that/WDT
was/VBD
encouraging/VBG
was/VBD
Treasury/NNP
bonds/NNS
were/VBD
off/RB
,/,
''/''
says/VBZ
Austin/NNP
George/NNP
,/,
head/NN
of/IN
stock/NN
trading/VBG
at/IN
T./NNP
Rowe/NNP
Price/NNP
./.
``/``
It/PRP
meant/VBD
that/IN
people/NNS
were/VBD
n't/RB
running/VBG
pell-mell/NN
to/TO
the/DT
safety/NN
of/IN
bonds/NNS
./.
''/''
Shortly/RB
after/IN
10/CD
a.m./NN
,/,
the/DT
Major/NNP
Market/NNP
Index/NNP
,/,
a/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
futures/NNS
contract/VB
of/IN
20/CD
stocks/NNS
designed/VBN
to/TO
mimic/VB
the/DT
DJIA/NNP
,/,
exploded/VBD
upward/RB
./.
Stock/NN
traders/NNS
were/VBD
buoyed/VBN
--/:
because/IN
an/DT
upturn/NN
in/IN
the/DT
MMI/NNP
had/VBD
also/RB
started/VBN
the/DT
recovery/NN
in/IN
stocks/NNS
on/IN
the/DT
Tuesday/NNP
following/NN
Black/NNP
Monday/NNP
./.
``/``
The/DT
MMI/NNP
has/VBZ
gone/VBN
better/RB
,/,
''/''
shouted/VBD
a/DT
trader/NN
in/IN
the/DT
London/NNP
office/NN
of/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
./.
Shearson/NNP
's/POS
London/NNP
trading/VBG
room/NN
went/VBD
wild/JJ
./.
Traders/NNS
shouted/VBD
out/IN
as/RB
their/PRP$
Reuters/NNP
,/,
Quotron/NNP
and/CC
Telerate/NNP
screens/NNS
posted/VBD
an/DT
ever-narrowing/JJ
loss/NN
on/IN
Wall/NNP
Street/NNP
./.
Then/RB
,/,
nine/CD
minutes/NNS
later/RB
,/,
Wall/NNP
Street/NNP
suddenly/RB
rebounded/VB
to/TO
a/DT
gain/NN
on/IN
the/DT
day/NN
./.
``/``
Rally/VB
,/,
rally/VB
,/,
rally/VB
,/,
''/''
shouted/VBD
Shearson/NNP
's/POS
Andy/NNP
Rosen/NNP
./.
``/``
This/DT
is/VBZ
panic/NN
buying/NN
./.
''/''
Major/JJ
blue-chip/JJ
stocks/NNS
like/IN
Philip/NNP
Morris/NNP
,/,
General/NNP
Motors/NNP
and/CC
Proctor/NNP
&/CC
Gamble/NNP
led/VBD
the/DT
rally/NN
./.
Japanese/NNP
were/VBD
said/VBD
to/TO
be/VB
heavy/NN
buyers/NNS
./.
German/NNP
and/CC
Dutch/NNP
investors/NNS
reportedly/RB
loaded/VBD
up/IN
on/IN
Kellogg/NNP
Co/NNP
./.
Then/RB
,/,
traders/NNS
say/VB
,/,
corporations/NNS
with/IN
share/NN
buy-back/JJ
programs/NNS
kicked/VBN
into/IN
high/JJ
gear/NN
,/,
triggering/VBG
gains/NNS
in/IN
,/,
among/IN
other/JJ
issues/NNS
,/,
Alcan/NNP
Aluminium/NNP
and/CC
McDonald/NNP
's/POS
./.
Walt/NNP
Disney/NNP
Co./NNP
,/,
which/WDT
had/VBD
one/NN
of/IN
the/DT
biggest/JJS
sell-order/JJ
imbalances/NNS
on/IN
Friday/NNP
and/CC
was/VBD
one/CD
of/IN
seven/CD
stocks/NNS
that/WDT
halted/VBD
trading/NN
and/CC
never/RB
reopened/VBD
that/DT
day/NN
,/,
opened/VBD
yesterday/NN
late/RB
at/IN
114.5/CD
,/,
down/RB
8.5/CD
./.
But/CC
then/RB
it/PRP
suddenly/RB
burst/VBD
upward/RB
7.5/CD
as/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
stepped/VBD
in/RB
and/CC
bought/VBD
almost/RB
every/DT
share/NN
offer/NN
,/,
traders/NNS
said/VBD
./.
By/IN
10:25/CD
,/,
the/DT
Dow/NNP
had/VBD
turned/VBN
up/IN
for/IN
the/DT
day/NN
,/,
prompting/VBG
cheers/NNS
on/IN
trading/VBG
desks/NNS
and/CC
exchange/NN
floors/NNS
./.
Among/IN
Big/NNP
Board/NNP
specialists/NNS
,/,
the/DT
cry/NN
was/VBD
``/``
Pull/VB
your/PRP$
offers/NNS
''/''
--/:
meaning/NN
that/IN
specialists/NNS
soon/RB
expected/VBN
to/TO
get/VB
higher/JJR
prices/NNS
for/IN
their/PRP$
shares/NNS
./.
``/``
It/PRP
was/VBD
bedlam/NN
on/IN
the/DT
upside/RB
,/,
''/''
said/VBD
one/CD
Big/NNP
Board/NNP
specialist/NN
./.
``/``
What/WP
we/PRP
had/VBD
was/VBD
a/DT
real/JJ
,/,
old-fashioned/JJ
rally/NN
./.
''/''
This/DT
technical/JJ
strength/NN
spurred/VBD
buying/NN
from/IN
Wall/NNP
Street/NNP
's/POS
``/``
black/JJ
boxes/NNS
,/,
''/''
computer/NN
programs/NNS
designed/VBN
to/TO
trigger/VB
large/JJ
stock/NN
purchases/NNS
during/IN
bullish/JJ
periods/NNS
./.
Typical/JJ
,/,
perhaps/RB
,/,
was/VBD
Batterymarch/NNP
's/POS
Dean/NNP
LeBaron/NNP
./.
Mr./NNP
LeBaron/NNP
,/,
who/WP
manages/VBZ
$/$
10/CD
billion/CD
,/,
says/VBZ
,/,
``/``
We/PRP
turned/VBD
the/DT
trading/NN
system/NN
on/RP
,/,
and/CC
it/PRP
did/VBD
whatever/WDT
it/PRP
was/VBD
programmed/VBN
to/TO
do/VB
./.
''/''
Asked/VBN
what/WP
stocks/VBZ
the/DT
computer/NN
bought/VBD
,/,
the/DT
money/NN
manager/NN
says/VBZ
,/,
``/``
I/PRP
do/VBP
n't/RB
know/VB
./.
''/''
Not/RB
everybody/NN
was/VBD
making/VBG
money/NN
./.
The/DT
carnage/NN
on/IN
the/DT
Chicago/NNP
Board/NNP
Options/NNP
Exchange/NNP
,/,
the/DT
nation/NN
's/POS
major/JJ
options/NNS
market/NN
,/,
was/VBD
heavy/JJ
after/IN
the/DT
trading/NN
in/IN
S&P/NNP
100/CD
stock-index/JJ
options/NNS
was/VBD
halted/VBN
Friday/NNP
./.
Many/JJ
market/NN
makers/NNS
in/IN
the/DT
S&P/NNP
100/CD
index/NN
options/NNS
contract/NN
had/VBD
bullish/JJ
positions/NNS
Friday/NNP
,/,
and/CC
when/WRB
the/DT
shutdown/NN
came/VBD
they/PRP
were/VBD
frozen/VBN
with/IN
huge/JJ
losses/NNS
./.
Over/IN
the/DT
weekend/NN
,/,
clearing/NN
firms/NNS
told/VBD
the/DT
Chicago/NNP
market/NN
makers/NNS
to/TO
get/VB
out/IN
of/IN
their/PRP$
positions/NNS
at/IN
any/DT
cost/NN
Monday/NNP
morning/NN
./.
``/``
They/PRP
were/VBD
absolutely/RB
killed/VBN
,/,
slaughtered/VBN
,/,
''/''
said/VBD
one/CD
Chicago-based/JJ
options/NNS
trader/NN
./.
Meanwhile/RB
,/,
a/DT
test/NN
of/IN
the/DT
stock/NN
market/NN
's/POS
rally/NN
came/VBD
at/IN
about/RB
2/CD
p.m./NN
,/,
with/IN
the/DT
Dow/NNP
at/IN
2600/CD
,/,
up/RB
31/CD
points/NNS
on/IN
the/DT
day/NN
./.
Charles/NNP
Clough/NNP
,/,
a/DT
strategist/NN
at/IN
Merrill/NNP
Lynch/NNP
,/,
says/VBZ
bargain/NN
hunting/NN
had/VBD
explained/VBN
the/DT
Dow/NNP
's/POS
strength/NN
up/IN
to/TO
that/DT
point/NN
and/CC
that/DT
many/JJ
market/NN
professionals/NNS
were/VBD
anticipating/VBG
a/DT
drop/NN
in/IN
the/DT
Dow/NNP
./.
Moreover/RB
,/,
the/DT
announcement/NN
that/IN
real/JJ
estate/NN
magnate/NN
and/CC
sometime/JJ
raider/NN
Donald/NNP
Trump/NNP
was/VBD
withdrawing/VBG
his/PRP$
offer/NN
for/IN
AMR/NNP
Corp./NNP
might/MD
have/VB
been/VBN
expected/VBN
to/TO
rattle/VB
traders/NNS
./.
Instead/RB
,/,
the/DT
rally/NN
only/RB
paused/VBD
for/IN
about/RB
25/CD
minutes/NNS
and/CC
then/RB
steamed/VBD
forward/RB
as/IN
institutions/NNS
resumed/VBD
buying/VBG
./.
The/DT
market/NN
closed/VBD
minutes/NNS
after/IN
reaching/VBG
its/PRP$
high/NN
for/IN
the/DT
day/NN
of/IN
Across/IN
the/DT
country/NN
,/,
many/JJ
people/NNS
took/VBD
yesterday/NN
's/POS
events/NNS
in/IN
stride/NN
,/,
while/IN
remaining/VBG
generally/RB
uneasy/JJ
about/IN
the/DT
stock/NN
market/NN
in/IN
general/NN
./.
Says/VBZ
James/NNP
Norman/NNP
,/,
the/DT
mayor/NN
of/IN
Ava/NNP
,/,
Mo./NNP
:/:
``/``
I/PRP
do/VBP
n't/RB
invest/VB
in/IN
stocks/NNS
./.
I/PRP
much/RB
prefer/VBP
money/NN
I/PRP
can/MD
put/VB
my/PRP$
hands/NNS
on/IN
./.
''/''
While/IN
Mayor/NNP
Norman/NNP
found/VBD
the/DT
market/NN
's/POS
performance/NN
Monday/NNP
reassuring/VBG
,/,
he/PRP
says/VBZ
,/,
he/PRP
remains/VBZ
uneasy/JJ
./.
``/``
We/PRP
have/VBP
half/PDT
the/DT
experts/NNS
saying/VBG
one/CD
thing/NN
and/CC
half/NN
the/DT
other/JJ
''/''
about/IN
the/DT
course/NN
of/IN
the/DT
economy/NN
./.
Ralph/NNP
Holzfaster/NNP
,/,
a/DT
farmer/NN
and/CC
farm-supply/JJ
store/NN
operator/NN
in/IN
Ogallala/NNP
,/,
Neb./NNP
,/,
says/VBZ
of/IN
the/DT
last/JJ
few/JJ
days/NNS
events/NNS
,/,
``/``
If/IN
anything/NN
good/JJ
comes/VBZ
out/IN
of/IN
this/DT
,/,
it/PRP
might/MD
be/VB
that/IN
it/PRP
puts/VBZ
some/DT
of/IN
these/DT
LBOs/NNS
on/IN
the/DT
skids/NNS
./.
''/''
Says/VBZ
Gordon/NNP
Fines/NNP
,/,
a/DT
money/NN
manager/NN
at/IN
IDS/NNP
Financial/NNP
Services/NNP
in/IN
Minneapolis/NNP
,/,
``/``
You/PRP
're/VBP
on/IN
a/DT
roller/NN
coaster/NN
,/,
and/CC
that/DT
may/MD
last/VB
./.
The/DT
public/NN
is/VBZ
still/RB
cautious/JJ
./.
''/''
Skipper/NNP
's/POS
Inc./NNP
,/,
Bellevue/NNP
,/,
Wash./NNP
,/,
said/VBD
it/PRP
signed/VBD
a/DT
definitive/JJ
merger/NN
agreement/NN
for/IN
a/DT
National/NNP
Pizza/NNP
Corp./NNP
unit/NN
to/TO
acquire/VB
the/DT
90.6/CD
%/NN
of/IN
Skipper/NNP
's/POS
Inc./NNP
it/PRP
does/VBZ
n't/RB
own/VB
for/IN
$/$
11.50/CD
a/DT
share/NN
,/,
or/CC
about/RB
$/$
28.1/CD
million/CD
./.
NP/NNP
Acquisition/NNP
Co./NNP
,/,
a/DT
National/NNP
Pizza/NNP
unit/NN
,/,
plans/VBZ
to/TO
begin/VB
a/DT
tender/NN
offer/NN
for/IN
Skipper/NNP
's/POS
on/IN
Friday/NNP
,/,
conditioned/VBN
on/IN
at/IN
least/JJS
two-thirds/NNS
of/IN
Skipper/NNP
's/POS
shares/NNS
being/VBG
tendered/VBN
./.
Pittsburg/NNP
,/,
Kan.-based/JJ
National/NNP
Pizza/NNP
said/VBD
the/DT
transaction/NN
will/MD
be/VB
financed/VBN
under/IN
its/PRP$
revolving/JJ
credit/NN
agreement/NN
./.
In/IN
national/JJ
over-the-counter/JJ
trading/NN
,/,
Skipper/NNP
's/POS
shares/NNS
rose/VBD
50/CD
cents/NNS
to/TO
$/$
11/CD
./.
Skipper/NNP
's/POS
said/VBD
the/DT
merger/NN
will/MD
help/VB
finance/VB
remodeling/NN
and/CC
future/JJ
growth/NN
./.
Skipper/NNP
's/POS
previously/RB
turned/VBD
down/RP
a/DT
$/$
10-a-share/JJ
proposal/NN
from/IN
National/NNP
Pizza/NNP
and/CC
Pizza/NNP
Hut/NNP
Inc./NNP
questioned/VBD
whether/IN
the/DT
purchase/NN
would/MD
violate/VB
National/NNP
Pizza/NNP
's/POS
franchise/NN
agreements/NNS
./.
National/NNP
Pizza/NNP
said/VBD
it/PRP
settled/VBD
its/PRP$
dispute/NN
with/IN
Pizza/NNP
Hut/NNP
,/,
allowing/VBG
it/PRP
to/TO
make/VB
the/DT
purchase/NN
./.
Also/RB
,/,
Skipper/NNP
's/POS
results/NNS
began/VBD
to/TO
turn/VB
around/RP
,/,
permitting/VBG
a/DT
higher/JJR
offer/NN
,/,
National/NNP
Pizza/NNP
said/VBD
./.
For/IN
the/DT
12/CD
weeks/NNS
ended/VBN
Sept./NNP
3/CD
,/,
Skipper/NNP
's/POS
had/VBD
net/JJ
income/NN
of/IN
$/$
361,000/CD
,/,
or/CC
13/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
a/DT
net/JJ
loss/NN
a/DT
year/NN
earlier/RBR
./.
Revenue/NN
was/VBD
$/$
19.9/CD
million/CD
./.
EAST/NNS
GERMANS/NNS
RALLIED/VBD
as/IN
officials/NNS
reportedly/RB
sought/VBD
Honecker/NNP
's/POS
ouster/NN
./.
In/IN
what/WP
was/VBD
considered/VBN
the/DT
largest/JJS
protest/NN
in/IN
the/DT
Communist/JJ
state/NN
's/POS
40-year/JJ
history/NN
,/,
at/IN
least/JJS
120,000/CD
demonstrators/NNS
marched/VBN
through/IN
the/DT
southern/JJ
city/NN
of/IN
Leipzig/NNP
to/TO
press/VB
demands/NNS
for/IN
democratic/JJ
freedoms/NNS
,/,
opposition/NN
activists/NNS
said/VBD
./.
Police/NNS
did/VBD
n't/RB
intervene/VB
./.
Meanwhile/RB
,/,
as/IN
the/DT
first/JJ
of/IN
more/JJR
than/IN
1,300/CD
East/NNS
Germans/NNS
trying/VBG
to/TO
flee/VB
to/TO
the/DT
West/NNP
through/IN
Poland/NNP
renounced/VBD
their/PRP$
citizenship/NN
,/,
a/DT
West/JJ
German/JJ
newspaper/NN
reported/VBD
that/IN
regional/JJ
Communist/JJ
officials/NNS
demanded/VBD
the/DT
dismissal/NN
of/IN
hard-line/JJ
leader/NN
Honecker/NNP
./.
Secretary/NNP
of/IN
State/NNP
Baker/NNP
,/,
in/IN
a/DT
foreign/JJ
policy/NN
speech/NN
,/,
called/VBD
for/IN
the/DT
reunification/NN
of/IN
Germany/NNP
,/,
saying/VBG
it/PRP
was/VBD
the/DT
``/``
legitimate/JJ
right/NN
''/''
of/IN
the/DT
German/JJ
people/NNS
./.
Gorbachev/NNP
blamed/VBD
the/DT
Soviet/NNP
Union/NNP
's/POS
press/NN
for/IN
contributing/VBG
to/TO
the/DT
nation/NN
's/POS
mounting/VBG
problems/NNS
./.
At/IN
a/DT
meeting/NN
Friday/NNP
,/,
the/DT
Kremlin/NNP
leader/NN
complained/VBD
about/IN
recent/JJ
articles/NNS
that/WDT
raised/VBD
the/DT
possiblity/NN
of/IN
civil/JJ
unrest/NN
,/,
and/CC
accused/VBD
the/DT
media/NNS
of/IN
fueling/VBG
panic/NN
buying/VBG
of/IN
goods/NNS
by/IN
publishing/VBG
stories/NNS
about/IN
impending/VBG
shortages/NNS
./.
House-Senate/JJ
conferees/NNS
approved/VBD
a/DT
permanent/JJ
smoking/NN
ban/NN
on/IN
domestic/JJ
airline/NN
routes/NNS
within/IN
the/DT
continental/JJ
U.S./NNP
and/CC
on/IN
flights/NNS
of/IN
less/JJR
than/IN
six/CD
hours/NNS
to/TO
Alaska/NNP
and/CC
Hawaii/NNP
./.
The/DT
curbs/NNS
would/MD
cover/VB
all/DT
but/CC
a/DT
small/JJ
percentage/NN
of/IN
flights/NNS
,/,
and/CC
represent/VB
an/DT
expansion/NN
of/IN
the/DT
current/JJ
ban/NN
on/IN
flights/NNS
of/IN
less/JJR
than/IN
two/CD
hours/NNS
./.
E./NNP
Robert/NNP
Wallach/NNP
was/VBD
sentenced/VBN
by/IN
a/DT
U.S./NNP
judge/NN
in/IN
New/NNP
York/NNP
to/TO
six/CD
years/NNS
in/IN
prison/NN
and/CC
fined/VBN
$/$
250,000/CD
for/IN
his/PRP$
racketeering/NN
conviction/NN
in/IN
the/DT
Wedtech/NNP
scandal/NN
./.
Wallach/NNP
,/,
an/DT
associate/NN
of/IN
ex-Attorney/NNP

General/NNP
Meese/NNP
,/,
was/VBD
found/VBN
guilty/JJ
in/IN
August/NNP
of/IN
taking/VBG
$/$
425,000/CD
in/IN
illegal/JJ
payoffs/NNS
from/IN
the/DT
now-defunct/JJ
defense/NN
contractor/NN
./.
NASA/NNP
resumed/VBD
the/DT
countdown/NN
for/IN
today/NN
's/POS
launch/NN
of/IN
the/DT
space/NN
shuttle/NN
Atlantis/NNP
,/,
and/CC
a/DT
federal/JJ
appeals/NNS
court/NN
in/IN
Washington/NNP
dismissed/VBD
a/DT
lawsuit/NN
by/IN
anti-nuclear/JJ
groups/NNS
to/TO
delay/VB
the/DT
flight/NN
because/IN
the/DT
plutonium-powered/JJ
Galileo/NNP
space/NN
probe/NN
was/VBD
aboard/RB
./.
The/DT
space/NN
agency/NN
said/VBD
it/PRP
did/VBD
n't/RB
expect/VB
weather/NN
or/CC
protesters/NNS
to/TO
block/VB
the/DT
liftoff/NN
./.
The/DT
Bush/NNP
administration/NN
is/VBZ
preparing/VBG
to/TO
extend/VB
a/DT
ban/NN
on/IN
federal/JJ
financing/NN
of/IN
research/NN
using/VBG
fetal/JJ
tissue/NN
,/,
government/NN
sources/NNS
said/VBD
./.
A/DT
temporary/JJ
prohibition/NN
was/VBD
imposed/VBN
in/IN
March/NNP
1988/CD
./.
While/IN
anti-abortion/JJ
groups/NNS
are/VBP
opposed/VBN
to/TO
such/JJ
research/NN
,/,
scientists/NNS
have/VBP
said/VBD
transplanting/VBG
such/JJ
tissue/NN
could/MD
be/VB
effective/JJ
in/IN
treating/VBG
diabetes/NN
./.
Delegates/NNS
from/IN
91/CD
nations/NNS
endorsed/VBD
a/DT
ban/NN
on/IN
world/NN
ivory/NN
trade/NN
in/IN
an/DT
attempt/NN
to/TO
rescue/VB
the/DT
endangered/VBN
elephant/NN
from/IN
extinction/NN
./.
Five/CD
African/JJ
nations/NNS
,/,
however/RB
,/,
said/VBD
they/PRP
would/MD
continue/VB
selling/VBG
the/DT
valuable/JJ
tusks/NNS
./.
Mubarak/NNP
held/VBD
reconciliation/NN
talks/NNS
with/IN
Gadhafi/NNP
at/IN
the/DT
Egyptian/JJ
resort/NN
of/IN
Mersa/NNP
Metruh/NNP
./.
It/PRP
was/VBD
the/DT
Libyan/JJ
leader/NN
's/POS
first/JJ
trip/NN
to/TO
Egypt/NNP
in/IN
16/CD
years/NNS
./.
They/PRP
announced/VBD
a/DT
reduction/NN
in/IN
formalities/NNS
for/IN
travel/NN
,/,
but/CC
did/VBD
n't/RB
show/VB
any/DT
real/JJ
signs/NNS
of/IN
resuming/VBG
full/JJ
diplomatic/JJ
ties/NNS
./.
The/DT
Egyptian/JJ
president/NN
said/VBD
he/PRP
would/MD
visit/VB
Libya/NNP
today/NN
to/TO
resume/VB
the/DT
talks/NNS
./.
Seoul/NNP
and/CC
Pyongyang/NNP
reached/VBD
a/DT
tentative/JJ
agreement/NN
to/TO
allow/VB
visits/NNS
between/IN
families/NNS
on/IN
the/DT
divided/VBN
Korean/JJ
peninsula/NN
./.
Such/JJ
family/NN
reunions/NNS
would/MD
be/VB
the/DT
second/JJ
since/IN
1945/CD
./.
Differences/NNS
remained/VBD
between/IN
the/DT
North/JJ
and/CC
South/JJ
Korean/JJ
governments/NNS
,/,
however/RB
,/,
over/IN
conditions/NNS
for/IN
the/DT
exchanges/NNS
./.
Freed/VBN
black/JJ
nationalists/NNS
resumed/VBD
political/JJ
activity/NN
in/IN
South/NNP
Africa/NNP
and/CC
vowed/VBD
to/TO
fight/VB
against/IN
apartheid/NN
,/,
raising/VBG
fears/NNS
of/IN
a/DT
possible/JJ
white/JJ
backlash/NN
./.
The/DT
nation/NN
's/POS
main/JJ
white/JJ
opposition/NN
party/NN
warned/VBD
that/IN
the/DT
government/NN
's/POS
release/NN
Sunday/NNP
of/IN
eight/CD
black/JJ
political/JJ
prisoners/NNS
risked/VBD
bringing/VBG
chaos/NN
and/CC
eventual/JJ
black/JJ
Marxist/JJ
rule/NN
to/TO
the/DT
nation/NN
./.
The/DT
White/NNP
House/NNP
said/VBD
Bush/NNP
is/VBZ
``/``
fully/RB
satisfied/VBN
''/''
with/IN
CIA/NNP
Director/NNP
Webster/NNP
and/CC
the/DT
intelligence/NN
agency/NN
's/POS
performance/NN
during/IN
the/DT
Oct./NNP
3/CD
failed/VBN
coup/NN
in/IN
Panama/NNP
./.
The/DT
Washington/NNP
Post/NNP
reported/VBD
that/IN
unidentified/JJ
senior/JJ
administration/NN
officials/NNS
were/VBD
frustrated/VBN
with/IN
Webster/NNP
's/POS
low-profile/JJ
activities/NNS
during/IN
the/DT
insurrection/NN
and/CC
wanted/VBD
him/PRP
replaced/VBN
./.
Poland/NNP
's/POS
legislature/NN
approved/VBD
limits/NNS
on/IN
automatic/JJ
wage/NN
increases/NNS
without/IN
special/JJ
provisions/NNS
for/IN
food/NN
price/NN
rises/NNS
./.
The/DT
vote/NN
was/VBD
considered/VBN
a/DT
test/NN
of/IN
the/DT
Solidarity-led/JJ
government/NN
's/POS
resolve/NN
to/TO
proceed/VB
with/IN
a/DT
harsh/JJ
economic-restructuring/JJ
program/NN
./.
Norway/NNP
's/POS
King/NNP
Olav/NNP
V/NNP
installed/VBD
a/DT
three-party/JJ
non-Socialist/JJ
government/NN
as/IN
Gro/NNP
Harlem/NNP
Brundtland/NNP
's/POS
three-year-old/JJ
Labor/NNP
regime/NN
relinquished/VBD
power/NN
./.
The/DT
19-member/JJ
cabinet/NN
is/VBZ
led/VBN
by/IN
Prime/NNP
Minister/NNP
Jan/NNP
Syse/NNP
,/,
who/WP
acknowledged/VBD
a/DT
``/``
difficult/JJ
situation/NN
''/''
since/IN
the/DT
coalition/NN
controls/VBZ
only/RB
62/CD
seats/NNS
in/IN
Oslo/NN
's/POS
165-member/JJ
legislature/NN
./.
El/NNP
Salvador/NNP
's/POS
government/NN
opened/VBD
a/DT
new/JJ
round/NN
of/IN
talks/NNS
with/IN
the/DT
country/NN
's/POS
leftist/JJ
rebels/NNS
in/IN
an/DT
effort/NN
to/TO
end/VB
a/DT
decade-long/JJ
civil/JJ
war/NN
./.
A/DT
spokesman/NN
said/VBD
the/DT
guerrillas/NNS
would/MD
present/VB
a/DT
cease-fire/NN
proposal/NN
during/IN
the/DT
negotiations/NNS
in/IN
Costa/NNP
Rica/NNP
that/WDT
includes/VBZ
constitutional/JJ
and/CC
economic/JJ
changes/NNS
./.
The/DT
State/NNP
Department/NNP
said/VBD
there/EX
was/VBD
a/DT
``/``
possibility/NN
''/''
that/IN
some/DT
Nicaraguan/JJ
rebels/NNS
were/VBD
selling/VBG
their/PRP$
U.S.-supplied/JJ
arms/NNS
to/TO
Salvadoran/JJ
guerrillas/NNS
,/,
but/CC
insisted/VBD
it/PRP
was/VBD
n't/RB
an/DT
organized/VBN
effort/NN
./.
Separately/RB
,/,
Secretary/NNP
of/IN
State/NNP
Baker/NNP
complained/VBD
about/IN
a/DT
U.N./NNP
aide/NN
who/WP
last/JJ
week/NN
told/VBD
the/DT
Contras/NNS
to/TO
disband/VB
as/IN
part/NN
of/IN
a/DT
regional/JJ
peace/NN
accord/NN
./.
Died/VBN
:/:
Cornel/NNP
Wilde/NNP
,/,
74/CD
,/,
actor/NN
and/CC
director/NN
,/,
in/IN
Los/NNP
Angeles/NNP
,/,
of/IN
leukemia/NN
.../:
./.
Danilo/NNP
Kis/NNP
,/,
54/CD
,/,
Yugoslav-born/JJ
novelist/NN
and/CC
essayist/NN
,/,
Sunday/NNP
,/,
in/IN
Paris/NNP
,/,
of/IN
cancer/NN
./.
British/JJ
retail/JJ
sales/NNS
volume/NN
rose/VBD
a/DT
provisional/JJ
0.4/CD
%/NN
in/IN
September/NNP
from/IN
August/NNP
and/CC
was/VBD
up/RB
2.2/CD
%/NN
from/IN
September/NNP
1988/CD
,/,
the/DT
Department/NNP
of/IN
Trade/NNP
and/CC
Industry/NNP
said/VBD
./.
For/IN
the/DT
three/CD
months/NNS
ended/VBN
in/IN
September/NNP
,/,
retail/JJ
sales/NNS
volume/NN
was/VBD
down/RB
0.5/CD
%/NN
from/IN
the/DT
previous/JJ
three/CD
months/NNS
and/CC
up/RB
1.2/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
./.
Chicago/NNP
investor/NN
William/NNP
Farley/NNP
agreed/VBD
to/TO
sell/VB
three/CD
divisions/NNS
of/IN
Cluett/NNP
Peabody/NNP
&/CC
Co./NNP
for/IN
about/RB
$/$
600/CD
million/CD
to/TO
Bidermann/NNP
S.A./NNP
,/,
a/DT
closely/RB
held/VBN
clothing/NN
maker/NN
based/VBN
in/IN
Paris/NNP
./.
Shortly/RB
after/IN
completing/VBG
the/DT
$/$
1.56/CD
billion/CD
acquisition/NN
of/IN
West/NNP
Point-Pepperell/NNP

Inc./NNP
in/IN
April/NNP
,/,
Mr./NNP
Farley/NNP
's/POS
holding/VBG
company/NN
,/,
Farley/NNP
Inc./NNP
,/,
said/VBD
it/PRP
was/VBD
considering/VBG
the/DT
sale/NN
of/IN
Cluett/NNP
,/,
a/DT
leading/JJ
shirt/NN
maker/NN
and/CC
one/CD
of/IN
West/NNP
Point-Pepperell/NNP
's/POS

biggest/JJS
units/NNS
./.
Included/VBN
in/IN
the/DT
sale/NN
are/VBP
Cluett/NNP
units/NNS
that/WDT
make/VBP
men/NNS
's/POS
shirts/NNS
under/IN
the/DT
Arrow/NNP
name/NN
,/,
socks/NNS
under/IN
the/DT
Gold/NNP
Toe/NNP
name/NN
and/CC
menswear/NN
through/IN
the/DT
Schoeneman/NNP
division/NN
./.
The/DT
companies/NNS
said/VBD
the/DT
agreement/NN
is/VBZ
subject/JJ
to/TO
Bidermann/NNP
's/POS
receipt/NN
of/IN
financing/NN
and/CC
to/TO
regulatory/JJ
and/CC
other/JJ
approvals/NNS
./.
They/PRP
said/VBD
the/DT
sale/NN
is/VBZ
expected/VBN
to/TO
be/VB
concluded/VBN
by/IN
the/DT
end/NN
of/IN
November/NNP
./.
Mr./NNP
Farley/NNP
said/VBD
the/DT
sale/NN
of/IN
three/CD
of/IN
Cluett/NNP
's/POS
four/CD
main/JJ
divisions/NNS
plus/CC
other/JJ
``/``
anticipated/VBN
''/''
West/NNP
Point-Pepperell/NNP

asset/NN
sales/NNS
by/IN
December/NNP
,/,
should/MD
bring/VB
in/IN
a/DT
total/NN
of/IN
about/RB
$/$
700/CD
million/CD
./.
He/PRP
did/VBD
n't/RB
elaborate/VB
on/IN
other/JJ
asset/NN
sales/NNS
being/VBG
considered/VBN
./.
Mr./NNP
Farley/NNP
followed/VBD
a/DT
similar/JJ
pattern/NN
when/WRB
he/PRP
acquired/VBD
Northwest/NNP
Industries/NNP
Inc./NNP
and/CC
then/RB
sold/VBN
much/JJ
of/IN
its/PRP$
assets/NNS
./.
But/CC
he/PRP
kept/VBD
Fruit/NNP
of/IN
the/DT
Loom/NNP
Inc./NNP
,/,
the/DT
underwear/NN
maker/NN
that/IN
he/PRP
still/RB
controls/VBZ
and/CC
serves/VBZ
as/IN
chairman/NN
and/CC
chief/JJ
executive/NN
./.
Cluett/NNP
was/VBD
an/DT
independent/JJ
company/NN
until/IN
West/NNP
Point-Pepperell/NNP
acquired/VBD
it/PRP
for/IN
$/$
375/CD
million/CD
in/IN
cash/NN
and/CC
stock/NN
in/IN
1986/CD
./.
In/IN
the/DT
fiscal/JJ
year/NN
ended/VBN
Sept./NNP
30/CD
,/,
1988/CD
,/,
Cluett/NNP
had/VBD
operating/NN
profit/NN
of/IN
$/$
37/CD
million/CD
on/IN
sales/NNS
of/IN
$/$
757/CD
million/CD
./.
Bidermann/NNP
sells/VBZ
clothes/NNS
under/IN
various/JJ
labels/NNS
,/,
including/VBG
Yves/NNP
Saint/NNP
Laurent/NNP
and/CC
Bill/NNP
Robinson/NNP
for/IN
men/NNS
and/CC
Ralph/NNP
Lauren/NNP
for/IN
women/NNS
./.
A/DT
spokesman/NN
said/VBD
the/DT
company/NN
had/VBD
sales/NNS
of/IN
$/$
400/CD
million/CD
in/IN
1988/CD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
,/,
West/NNP
Point-Pepperell/NNP
fell/VBD
25/CD
cents/NNS
to/TO
$/$
53.875/CD
./.
Britain/NNP
's/POS
Blue/NNP
Arrow/NNP
PLC/NNP
intends/VBZ
to/TO
change/VB
its/PRP$
name/NN
to/TO
Manpower/NNP
PLC/NNP
and/CC
write/VB
off/RP
a/DT
chunk/NN
of/IN
the/DT
nearly/RB
$/$
1.2/CD
billion/CD
in/IN
good/JJ
will/NN
realized/VBN
in/IN
the/DT
takeover/NN
of/IN
U.S.-based/JJ
Manpower/NNP
Inc/NNP
./.
Blue/NNP
Arrow/NNP
Chairman/NNP
Mitchell/NNP
Fromstein/NNP
said/VBD
in/IN
an/DT
interview/NN
that/IN
the/DT
two/CD
steps/NNS
may/MD
be/VB
a/DT
prelude/NN
to/TO
reincorporating/VBG
the/DT
world/NN
's/POS
biggest/JJS
employment-services/JJ
group/NN
in/IN
the/DT
U.S/NNP
./.
Mr./NNP
Fromstein/NNP
disclosed/VBD
the/DT
planned/VBN
steps/NNS
,/,
expected/VBN
within/IN
a/DT
few/JJ
months/NNS
,/,
as/IN
Blue/NNP
Arrow/NNP
posted/VBD
a/DT
2.5/CD
%/NN
drop/NN
in/IN
its/PRP$
third-quarter/JJ
pretax/JJ
earnings/NNS
./.
The/DT
name/NN
change/NN
and/CC
good/JJ
will/NN
write-off/NN
could/MD
help/VB
solidify/VB
Blue/NNP
Arrow/NNP
's/POS
dominance/NN
of/IN
the/DT
U.S./NNP
temporary-help/JJ
market/NN
and/CC
give/VB
it/PRP
a/DT
more/RBR
American/JJ
image/NN
as/IN
U.S./NNP
investors/NNS
turn/VBP
jittery/JJ
about/IN
foreign/JJ
stocks/NNS
after/IN
Friday/NNP
's/POS
market/NN
plunge/NN
./.
U.S./NNP
holders/NNS
now/RB
own/VBP
more/JJR
than/IN
60/CD
%/NN
of/IN
Blue/NNP
Arrow/NNP
compared/VBN
with/IN
9/CD
%/NN
last/JJ
January/NNP
./.
``/``
In/IN
the/DT
U.S./NNP
market/NN
,/,
the/DT
recognition/NN
of/IN
the/DT
Manpower/NNP
name/NN
is/VBZ
infinitely/RB
stronger/JJR
than/IN
Blue/NNP
Arrow/NNP
,/,
''/''
Mr./NNP
Fromstein/NNP
said/VBD
./.
The/DT
moves/NNS
also/RB
could/MD
erase/VB
shareholders/NNS
'/POS
perception/NN
of/IN
Blue/NNP
Arrow/NNP
as/IN
a/DT
company/NN
in/IN
turmoil/NN
./.
``/``
It/PRP
further/RBR
reinforces/VBZ
the/DT
concept/NN
that/IN
Blue/NNP
Arrow/NNP
is/VBZ
a/DT
thing/NN
of/IN
the/DT
past/NN
,/,
''/''
said/VBD
Doug/NNP
Arthur/NNP
,/,
an/DT
analyst/NN
at/IN
Kidder/NNP
Peabody/NNP
&/CC
Co./NNP
in/IN
New/NNP
York/NNP
./.
The/DT
proposed/VBN
changes/NNS
``/``
all/DT
make/VBP
a/DT
lot/NN
of/IN
sense/NN
to/TO
me/PRP
,/,
''/''
he/PRP
added/VBD
./.
In/IN
a/DT
widely/RB
publicized/VBN
boardroom/NN
coup/NN
,/,
Mr./NNP
Fromstein/NNP
ousted/VBD
Antony/NNP
Berry/NNP
as/IN
Blue/NNP
Arrow/NNP
chief/JJ
executive/NN
in/IN
January/NNP
,/,
a/DT
month/NN
after/IN
Mr./NNP
Berry/NNP
had/VBD
forced/VBN
Mr./NNP
Fromstein/NNP
out/RB
as/IN
the/DT
$/$
1/CD
million-a-year/JJ
chief/NN
of/IN
Milwaukee-based/JJ
Manpower/NNP
./.
Mr./NNP
Fromstein/NNP
solidified/VBD
his/PRP$
control/NN
in/IN
April/NNP
by/IN
taking/VBG
over/RP
from/IN
Mr./NNP
Berry/NNP
as/IN
chairman/NN
./.
But/CC
the/DT
Blue/NNP
Arrow/NNP
tumult/NN
is/VBZ
n't/RB
over/RB
yet/RB
,/,
as/IN
the/DT
British/JJ
government/NN
is/VBZ
investigating/VBG
a/DT
disputed/VBN
#/#
25/CD
million/CD
$/$
39.4/CD
million/CD
loan/NN
which/WDT
Mr./NNP
Fromstein/NNP
has/VBZ
said/VBD
was/VBD
made/VBN
under/IN
Mr./NNP
Berry/NNP
's/POS
direction/NN
./.
Blue/NNP
Arrow/NNP
was/VBD
able/JJ
to/TO
pull/VB
off/RP
the/DT
$/$
1.34/CD
billion/CD
takeover/NN
of/IN
Manpower/NNP
in/IN
1987/CD
largely/RB
because/IN
different/JJ
British/JJ
and/CC
American/JJ
accounting/NN
standards/NNS
produce/VBP
higher/JJR
reported/VBN
earnings/NNS
for/IN
British/JJ
companies/NNS
./.
Under/IN
British/JJ
rules/NNS
,/,
Blue/NNP
Arrow/NNP
was/VBD
able/JJ
to/TO
write/VB
off/RP
at/IN
once/RB
the/DT
$/$
1.15/CD
billion/CD
in/IN
good/JJ
will/NN
arising/VBG
from/IN
the/DT
purchase/NN
./.
As/IN
a/DT
U.S.-based/JJ
company/NN
,/,
Blue/NNP
Arrow/NNP
would/MD
have/VB
to/TO
amortize/VB
the/DT
good/JJ
will/NN
over/IN
as/RB
many/JJ
as/IN
40/CD
years/NNS
,/,
creating/VBG
a/DT
continuing/VBG
drag/NN
on/IN
reported/VBN
earnings/NNS
./.
Good/JJ
will/NN
is/VBZ
the/DT
excess/NN
of/IN
cost/NN
of/IN
an/DT
acquired/VBN
firm/NN
,/,
operating/VBG
unit/NN
or/CC
assets/NNS
over/IN
the/DT
current/JJ
or/CC
fair/JJ
market/NN
value/NN
of/IN
those/DT
assets/NNS
./.
But/CC
with/IN
so/RB
many/JJ
shares/NNS
now/RB
held/VBN
in/IN
the/DT
U.S./NNP
,/,
Blue/NNP
Arrow/NNP
reports/VBZ
its/PRP$
earnings/NNS
two/CD
ways/NNS
,/,
based/VBN
on/IN
both/DT
U.K./NNP
and/CC
U.S./NNP
accounting/NN
standards/NNS
./.
``/``
Our/PRP$
balance/NN
sheets/NNS
look/VBP
like/IN
they/PRP
came/VBD
from/IN
Alice/NNP
's/POS
wonderland/NN
,/,
''/''
Mr./NNP
Fromstein/NNP
said/VBD
./.
The/DT
British/JJ
version/NN
shows/VBZ
``/``
a/DT
handful/NN
of/IN
pounds/NNS
of/IN
net/JJ
worth/NN
''/''
following/VBG
the/DT
1987/CD
write-off/NN
of/IN
good/JJ
will/NN
,/,
while/IN
the/DT
American/JJ
version/NN
reflects/VBZ
``/``
$/$
1/CD
billion/CD
of/IN
net/JJ
worth/NN
because/IN
almost/RB
none/NN
of/IN
{/(
the/DT
good/NN
will/NN
}/)
has/VBZ
been/VBN
written/VBN
off/RP
./.
''/''
Mr./NNP
Fromstein/NNP
said/VBD
he/PRP
hopes/VBZ
to/TO
eradicate/VB
some/DT
of/IN
the/DT
good/JJ
will/NN
left/VBN
on/IN
Blue/NNP
Arrow/NNP
's/POS
U.S./NNP
books/NNS
in/IN
one/CD
fell/JJ
swoop/NN
,/,
but/CC
would/MD
n't/RB
specify/VB
how/WRB
much/RB
./.
People/NNS
close/JJ
to/TO
Blue/NNP
Arrow/NNP
suggested/VBD
the/DT
write-down/NN
would/MD
represent/VB
a/DT
sizable/JJ
chunk/NN
,/,
with/IN
executives/NNS
claiming/VBG
prior/JJ
management/NN
overstated/VBD
the/DT
extent/NN
of/IN
Manpower/NNP
's/POS
good/JJ
will/NN
./.
That/DT
move/NN
,/,
along/IN
with/IN
the/DT
return/NN
to/TO
the/DT
Manpower/NNP
name/NN
,/,
could/MD
bolster/VB
the/DT
company/NN
's/POS
prospects/NNS
during/IN
possibly/RB
difficult/JJ
times/NNS
for/IN
temporary/JJ
help/NN
./.
The/DT
number/NN
of/IN
U.S./NNP
temporary/JJ
workers/NNS
fell/VBD
about/RB
1/CD
%/NN
in/IN
the/DT
12/CD
months/NNS
ending/VBG
Aug./NNP
31/CD
,/,
after/IN
sliding/VBG
nearly/RB
3.5/CD
%/NN
in/IN
July/NNP
,/,
said/VBD
Kidder/NNP
Peabody/NNP
's/POS
Mr./NNP
Arthur/NNP
./.
Blue/NNP
Arrow/NNP
blamed/VBD
the/DT
pretax/JJ
profit/NN
drop/NN
in/IN
the/DT
quarter/NN
ended/VBN
July/NNP
31/CD
partly/RB
on/IN
slower/JJR
earnings/NNS
growth/NN
of/IN
non-Manpower/JJ
units/NNS
in/IN
Britain/NNP
./.
Overall/RB
,/,
pretax/JJ
profit/NN
slid/VBD
to/TO
#/#
18.49/CD
million/CD
in/IN
the/DT
quarter/NN
from/IN
#/#
18.98/CD
million/CD
a/DT
year/NN
earlier/RBR
./.
Richard/NNP
G./NNP
Sim/NNP
,/,
the/DT
man/NN
credited/VBN
with/IN
transforming/VBG
Applied/NNP
Power/NNP
Inc./NNP
from/IN
an/DT
underachiever/NN
into/IN
a/DT
feisty/JJ
player/NN
in/IN
the/DT
global/JJ
market/NN
for/IN
hydraulic/JJ
tools/NNS
,/,
hopes/VBZ
to/TO
guide/VB
a/DT
similar/JJ
turnaround/NN
at/IN
the/DT
company/NN
's/POS
latest/JJS
acquisition/NN
,/,
Barry/NNP
Wright/NNP
Corp/NNP
./.
The/DT
45-year-old/JJ
former/JJ
General/NNP
Electric/NNP
Co./NNP
executive/NN
figures/VBZ
it/PRP
will/MD
be/VB
easier/JJR
this/DT
time/NN
./.
But/CC
analysts/NNS
,/,
while/IN
applauding/VBG
the/DT
acquisition/NN
,/,
say/VBP
Applied/NNP
's/POS
chief/JJ
executive/NN
faces/VBZ
a/DT
tough/JJ
challenge/NN
in/IN
integrating/VBG
the/DT
two/CD
companies/NNS
./.
Barry/NNP
Wright/NNP
,/,
acquired/VBN
by/IN
Applied/NNP
for/IN
$/$
147/CD
million/CD
,/,
makes/VBZ
computer-room/JJ
equipment/NN
and/CC
vibration-control/JJ
systems/NNS
./.
The/DT
Watertown/NNP
,/,
Mass./NNP
,/,
company/NN
's/POS
sales/NNS
have/VBP
been/VBN
dormant/JJ
and/CC
its/PRP$
profits/NNS
have/VBP
dropped/VBN
./.
Last/JJ
year/NN
's/POS
earnings/NNS
of/IN
$/$
1.3/CD
million/CD
,/,
including/VBG
$/$
815,000/CD
from/IN
a/DT
restructuring/NN
gain/NN
,/,
were/VBD
far/RB
below/IN
the/DT
year-earlier/JJ
$/$
8.4/CD
million/CD
./.
Besides/IN
spurring/VBG
Barry/NNP
Wright/NNP
's/POS
sales/NNS
,/,
which/WDT
were/VBD
$/$
201.7/CD
million/CD
in/IN
1988/CD
,/,
Mr./NNP
Sim/NNP
must/MD
pare/VB
its/PRP$
costs/NNS
and/CC
product/NN
line/NN
./.
``/``
The/DT
question/NN
is/VBZ
how/WRB
long/JJ
it/PRP
's/VBZ
going/VBG
to/TO
take/VB
Barry/NNP
Wright/NNP
to/TO
make/VB
a/DT
contribution/NN
,/,
''/''
says/VBZ
F./NNP
John/NNP
Mirek/NNP
,/,
an/DT
analyst/NN
at/IN
Blunt/NNP
Ellis/NNP
Loewi/NNP
in/IN
Milwaukee/NNP
./.
The/DT
answer/NN
will/MD
help/VB
determine/VB
whether/IN
Applied/VBN
continues/VBZ
to/TO
reach/VB
the/DT
ambitious/JJ
goals/NNS
set/VBN
by/IN
Mr./NNP
Sim/NNP
./.
The/DT
Butler/NNP
,/,
Wis./NNP
,/,
manufacturer/NN
went/VBD
public/JJ
at/IN
$/$
15.75/CD
a/DT
share/NN
in/IN
August/NNP
1987/CD
,/,
and/CC
Mr./NNP
Sim/NNP
's/POS
goal/NN
then/RB
was/VBD
a/DT
$/$
29/CD
per-share/JJ
price/NN
by/IN
1992/CD
./.
Strong/JJ
earnings/NNS
growth/NN
helped/VBD
achieve/VB
that/DT
price/NN
far/RB
ahead/RB
of/IN
schedule/NN
,/,
in/IN
August/NNP
1988/CD
./.
The/DT
stock/NN
has/VBZ
since/IN
softened/VBN
,/,
trading/VBG
around/RB
$/$
25/CD
a/DT
share/NN
last/JJ
week/NN
and/CC
closing/VBG
yesterday/NN
at/IN
$/$
23.00/CD
in/IN
national/JJ
over-the-counter/JJ
trading/NN
./.
But/CC
Mr./NNP
Sim/NNP
has/VBZ
set/VBN
a/DT
fresh/JJ
target/NN
of/IN
$/$
50/CD
a/DT
share/NN
by/IN
the/DT
end/NN
of/IN
Reaching/VBG
that/DT
goal/NN
,/,
says/VBZ
Robert/NNP
T./NNP
Foote/NNP
,/,
Applied/NNP
's/POS
chief/JJ
financial/JJ
officer/NN
,/,
will/MD
require/VB
``/``
efficient/JJ
reinvestment/NN
''/''
of/IN
cash/NN
by/IN
Applied/NNP
and/CC
continuation/NN
of/IN
its/PRP$
healthy/JJ
19/CD
%/NN
rate/NN
of/IN
return/NN
on/IN
operating/NN
capital/NN
./.
In/IN
Barry/NNP
Wright/NNP
,/,
Mr./NNP
Sim/NNP
sees/VBZ
a/DT
situation/NN
``/``
very/RB
similar/JJ
''/''
to/TO
the/DT
one/CD
he/PRP
faced/VBD
when/WRB
he/PRP
joined/VBD
Applied/NNP
as/IN
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
in/IN
1985/CD
./.
Applied/NNP
,/,
then/RB
a/DT
closely/RB
held/VBN
company/NN
,/,
was/VBD
stagnating/VBG
under/IN
the/DT
management/NN
of/IN
its/PRP$
controlling/VBG
family/NN
./.
While/IN
profitable/JJ
,/,
it/PRP
``/``
was/VBD
n't/RB
growing/VBG
and/CC
was/VBD
n't/RB
providing/VBG
a/DT
satisfactory/JJ
return/NN
on/IN
invested/VBN
capital/NN
,/,
''/''
he/PRP
says/VBZ
./.
Mr./NNP
Sim/NNP
is/VBZ
confident/JJ
that/IN
the/DT
drive/NN
to/TO
dominate/VB
certain/JJ
niche/NN
markets/NNS
will/MD
work/VB
at/IN
Barry/NNP
Wright/NNP
as/IN
it/PRP
has/VBZ
at/IN
Applied/NNP
./.
He/PRP
also/RB
professes/VBZ
an/DT
``/``
evangelical/JJ
''/''
fervor/NN
to/TO
develop/VB
a/DT
corporate/JJ
culture/NN
that/WDT
rewards/VBZ
managers/NNS
who/WP
produce/VBP
and/CC
where/WRB
decision-making/NN
is/VBZ
shared/VBN
./.
Mr./NNP
Sim/NNP
considers/VBZ
the/DT
new/JJ
unit/NN
's/POS
operations/NNS
``/``
fundamentally/RB
sound/JJ
''/''
and/CC
adds/VBZ
that/IN
Barry/NNP
Wright/NNP
has/VBZ
been/VBN
fairly/RB
successful/JJ
in/IN
moving/VBG
into/IN
markets/NNS
that/WDT
have/VBP
n't/RB
interested/VBN
larger/JJR
competitors/NNS
./.
``/``
With/IN
a/DT
little/JJ
patience/NN
,/,
these/DT
businesses/NNS
will/MD
perform/VB
very/RB
satisfactorily/RB
,/,
''/''
Mr./NNP
Sim/NNP
says/VBZ
./.
Within/IN
about/RB
six/CD
months/NNS
,/,
``/``
things/NNS
will/MD
be/VB
moving/VBG
in/IN
the/DT
right/JJ
direction/NN
,/,
''/''
he/PRP
predicts/VBZ
./.
Mr./NNP
Sim/NNP
figures/VBZ
it/PRP
will/MD
be/VB
easier/JJR
to/TO
turn/VB
Barry/NNP
Wright/NNP
around/IN
since/IN
he/PRP
's/VBZ
now/RB
in/IN
the/DT
driver/NN
's/POS
seat/NN
./.
When/WRB
he/PRP
came/VBD
to/TO
Applied/NNP
,/,
``/``
I/PRP
did/VBD
n't/RB
have/VB
the/DT
power/NN
to/TO
execute/VB
as/IN
I/PRP
do/VBP
today/NN
,/,
''/''
he/PRP
says/VBZ
./.
He/PRP
was/VBD
named/VBN
chief/JJ
executive/JJ
officer/NN
of/IN
Applied/NNP
in/IN
1986/CD
and/CC
became/VBD
chairman/NN
last/JJ
November/NNP
./.
At/IN
Applied/NNP
,/,
Mr./NNP
Sim/NNP
set/VBD
growth/NN
as/IN
his/PRP$
first/JJ
objective/NN
./.
He/PRP
took/VBD
the/DT
company/NN
public/NN
in/IN
an/DT
offering/NN
that/WDT
netted/VBD
Applied/NNP
about/RB
$/$
12.6/CD
million/CD
,/,
which/WDT
helped/VBD
launch/VB
the/DT
company/NN
's/POS
acquisition/NN
program/NN
./.
Sales/NNS
climbed/VBD
to/TO
an/DT
estimated/VBN
$/$
245/CD
million/CD
in/IN
fiscal/JJ
1989/CD
,/,
ended/VBN
Aug./NNP
31/CD
,/,
from/IN
$/$
99.9/CD
million/CD
in/IN
fiscal/JJ
1985/CD
./.
The/DT
company/NN
expects/VBZ
that/IN
earnings/NNS
,/,
which/WDT
have/VBP
marched/VBN
steadily/RB
upward/RB
in/IN
recent/JJ
years/NNS
,/,
reached/VBD
about/RB
$/$
20.8/CD
million/CD
,/,
or/CC
$/$
1.58/CD
a/DT
share/NN
,/,
in/IN
the/DT
fiscal/JJ
year/NN
just/RB
ended/VBD
,/,
up/RB
from/IN
$/$
15.2/CD
million/CD
in/IN
fiscal/JJ
1988/CD
and/CC
$/$
3.9/CD
million/CD
in/IN
1985/CD
./.
The/DT
Supreme/NNP
Court/NNP
agreed/VBD
to/TO
decide/VB
whether/IN
a/DT
federal/JJ
court/NN
,/,
in/IN
an/DT
antitrust/JJ
lawsuit/NN
filed/VBN
by/IN
state/NN
officials/NNS
or/CC
private/JJ
parties/NNS
,/,
may/MD
dismantle/VB
a/DT
merger/NN
that/IN
it/PRP
has/VBZ
ruled/VBN
anti-competitive/JJ
./.
The/DT
high/JJ
court/NN
agreed/VBD
to/TO
hear/VB
the/DT
state/NN
of/IN
California/NNP
's/POS
challenge/NN
to/TO
the/DT
legality/NN
of/IN
the/DT
acquisition/NN
of/IN
Lucky/NNP
Stores/NNP
Inc./NNP
,/,
a/DT
supermarket/NN
chain/NN
,/,
by/IN
American/NNP
Stores/NNP
Co./NNP
which/WDT
owns/VBZ
another/DT
chain/NN
,/,
Alpha/NNP
Beta/NNP
Stores/NNP
Inc/NNP
./.
Under/IN
federal/JJ
antitrust/JJ
law/NN
,/,
the/DT
Federal/NNP
Trade/NNP
Commission/NNP
and/CC
the/DT
Justice/NNP
Department/NNP
have/VBP
the/DT
authority/NN
to/TO
ask/VB
a/DT
federal/JJ
court/NN
to/TO
order/VB
the/DT
divestiture/NN
of/IN
a/DT
merger/NN
that/WDT
has/VBZ
been/VBN
completed/VBN
but/CC
has/VBZ
been/VBN
found/VBN
to/TO
be/VB
anticompetitive/JJ
./.
But/CC
even/RB
after/IN
the/DT
federal/JJ
agencies/NNS
have/VBP
approved/VBN
a/DT
merger/NN
,/,
federal/JJ
antitrust/JJ
law/NN
allows/VBZ
states/NNS
or/CC
other/JJ
affected/VBN
parties/NNS
to/TO
sue/VB
to/TO
challenge/VB
the/DT
merger/NN
on/IN
the/DT
grounds/NNS
that/IN
it/PRP
is/VBZ
anticompetitive/JJ
./.
Federal/JJ
appeals/NNS
courts/NNS
,/,
however/RB
,/,
disagree/VBP
whether/IN
federal/JJ
courts/NNS
have/VBP
the/DT
authority/NN
to/TO
order/VB
the/DT
break/NN
up/RP
of/IN
completed/VBN
mergers/NNS
in/IN
such/JJ
private/JJ
antitrust/JJ
lawsuits/NNS
./.
While/IN
the/DT
high/JJ
court/NN
tries/VBZ
to/TO
resolve/VB
the/DT
disparate/JJ
views/NNS
of/IN
the/DT
appeals/NNS
courts/NNS
,/,
American/NNP
Stores/NNP
remains/VBZ
under/IN
a/DT
temporary/JJ
order/NN
to/TO
operate/VB
the/DT
two/CD
supermarket/NN
chains/NNS
as/IN
separate/JJ
businesses/NNS
./.
American/NNP
Stores/NNP
'/POS
bid/NN
for/IN
Lucky/NNP
Stores/NNP
began/VBD
as/IN
a/DT
hostile/JJ
offer/NN
./.
But/CC
when/WRB
the/DT
tender/NN
offer/NN
was/VBD
increased/VBN
,/,
Lucky/NNP
's/POS
directors/NNS
approved/VBD
the/DT
merger/NN
and/CC
,/,
in/IN
June/NNP
1988/CD
,/,
American/NNP
Stores/NNP
'/POS
$/$
2.5/CD
billion/CD
purchase/NN
of/IN
Lucky/NNP
Stores/NNP
was/VBD
completed/VBN
./.
The/DT
FTC/NNP
reviewed/VBD
the/DT
merger/NN
and/CC
,/,
in/IN
August/NNP
1988/CD
,/,
approved/VBD
a/DT
settlement/NN
between/IN
the/DT
FTC/NNP
staff/NN
and/CC
American/NNP
Stores/NNP
./.
While/IN
the/DT
settlement/NN
was/VBD
under/IN
review/NN
by/IN
the/DT
FTC/NNP
,/,
the/DT
staff/NN
required/VBD
American/NNP
Stores/NNP
to/TO
run/VB
the/DT
Lucky/NNP
and/CC
Alpha/NNP
Beta/NNP
chains/NNS
separately/RB
./.
Meanwhile/RB
,/,
California/NNP
officials/NNS
,/,
arguing/VBG
that/IN
the/DT
merger/NN
would/MD
cost/VB
the/DT
state/NN
's/POS
consumers/NNS
$/$
400/CD
million/CD
annually/RB
in/IN
higher/JJR
prices/NNS
,/,
sued/VBD
in/IN
federal/JJ
court/NN
in/IN
September/NNP
1988/CD
./.
A/DT
federal/JJ
judge/NN
in/IN
Los/NNP
Angeles/NNP
,/,
after/IN
a/DT
hearing/NN
but/CC
before/IN
a/DT
trial/NN
was/VBD
held/VBN
,/,
reached/VBD
an/DT
initial/JJ
conclusion/NN
that/IN
the/DT
merger/NN
was/VBD
anti-competitive/JJ
./.
He/PRP
then/RB
issued/VBD
a/DT
preliminary/JJ
injunction/NN
ordering/VBG
American/NNP
Stores/NNP
to/TO
continue/VB
to/TO
run/VB
the/DT
two/CD
chains/NNS
separately/RB
./.
A/DT
federal/JJ
appeals/NNS
court/NN
in/IN
San/NNP
Francisco/NNP
ruled/VBD
in/IN
March/NNP
that/IN
the/DT
district/NN
court/NN
's/POS
order/NN
had/VBD
the/DT
same/JJ
effect/NN
as/IN
requiring/VBG
divestiture/NN
of/IN
one/CD
chain/NN
by/IN
American/NNP
Stores/NNP
./.
The/DT
appeals/NNS
court/NN
said/VBD
federal/JJ
courts/NNS
lack/VBP
the/DT
authority/NN
to/TO
require/VB
divestiture/NN
in/IN
private/JJ
antitrust/JJ
lawsuits/NNS
./.
In/IN
August/NNP
,/,
Supreme/NNP
Court/NNP
Justice/NNP
Sandra/NNP
O'Connor/NNP
issued/VBD
a/DT
temporary/JJ
stay/NN
,/,
requiring/VBG
the/DT
separate/JJ
operations/NNS
to/TO
continue/VB
until/IN
the/DT
high/JJ
court/NN
could/MD
decide/VB
whether/IN
to/TO
hear/VB
the/DT
case/NN
./.
California/NNP
vs./IN
American/NNP
Stores/NNP
Co/NNP
./.
Court/NNP
in/IN
Brief/NNP
In/IN
other/JJ
action/NN
yesterday/NN
,/,
the/DT
high/JJ
court/NN
:/:
--/:
Agreed/VBD
to/TO
decide/VB
whether/IN
people/NNS
arrested/VBN
for/IN
drunken/JJ
driving/NN
must/MD
be/VB
advised/VBN
of/IN
their/PRP$
right/NN
to/TO
decline/VB
to/TO
answer/NN
questions/NNS
and/CC
to/TO
consult/VB
a/DT
lawyer/NN
before/IN
police/NNS
may/MD
videotape/VB
them/PRP
to/TO
preserve/VB
a/DT
record/NN
of/IN
their/PRP$
condition/NN
./.
Pennsylvania/NNP
vs./IN
Muniz/NNP
--/:
Agreed/VBD
to/TO
decide/VB
whether/IN
a/DT
federal/JJ
court/NN
may/MD
fine/VB
a/DT
lawyer/NN
for/IN
filing/VBG
a/DT
frivolous/JJ
lawsuit/NN
although/IN
the/DT
lawyer/NN
and/CC
client/NN
voluntarily/RB
dismiss/VBP
the/DT
lawsuit/NN
./.
Cooper/NNP
&/CC
Gell/NNP
vs./IN
Hartmarx/NNP
Corp/NNP
./.
Right-to-Die/JJ
Appeal/NN
The/DT
Bush/NNP
administration/NN
,/,
in/IN
a/DT
friend-of-the-court/JJ
brief/NN
,/,
said/VBD
that/IN
the/DT
Constitution/NNP
gives/VBZ
states/NNS
broad/JJ
flexibility/NN
to/TO
require/VB
that/IN
medical/JJ
patients/NNS
in/IN
permanent/JJ
,/,
vegetative/JJ
conditions/NNS
continue/VBP
to/TO
receive/VB
artificial/JJ
feeding/NN
and/CC
fluids/NNS
./.
The/DT
brief/NN
,/,
filed/VBN
by/IN
Solicitor/NNP
General/NNP
Kenneth/NNP
Starr/NNP
,/,
said/VBD
the/DT
family/NN
of/IN
a/DT
Missouri/NNP
woman/NN
in/IN
such/JJ
a/DT
vegetative/JJ
state/NN
does/VBZ
n't/RB
have/VB
the/DT
constitutional/JJ
right/NN
to/TO
insist/VB
the/DT
state/NN
cut/VB
off/RP
artificial/JJ
feeding/NN
./.
The/DT
brief/NN
makes/VBZ
roughly/RB
the/DT
same/JJ
argument/NN
the/DT
government/NN
made/VBD
last/JJ
week/NN
in/IN
a/DT
brief/NN
urging/VBG
more/JJR
leeway/NN
for/IN
states/NNS
to/TO
restrict/VB
abortions/NNS
./.
The/DT
brief/NN
filed/VBN
yesterday/NN
says/VBZ
state/NN
regulations/NNS
need/MD
only/RB
be/VB
``/``
reasonable/JJ
''/''
to/TO
withstand/VB
federal/JJ
court/NN
review/NN
,/,
an/DT
easy/JJ
standard/NN
for/IN
states/NNS
to/TO
satisfy/VB
./.
Moreover/RB
,/,
the/DT
brief/NN
is/VBZ
critical/JJ
of/IN
arguments/NNS
for/IN
a/DT
constitutional/JJ
right/NN
to/TO
privacy/NN
,/,
saying/VBG
any/DT
right/NN
for/IN
competent/JJ
individuals/NNS
to/TO
refuse/VB
medical/JJ
treatment/NN
should/MD
be/VB
rooted/VBN
in/IN
tradition/NN
and/CC
based/VBN
on/IN
the/DT
14th/JJ
Amendment/NNP
``/``
due/JJ
process/NN
''/''
protection/NN
of/IN
``/``
liberty/NN
,/,
''/''
not/RB
on/IN
``/``
abstract/JJ
notions/NNS
''/''
of/IN
privacy/NN
,/,
which/WDT
the/DT
Constitution/NNP
does/VBZ
n't/RB
mention/VB
./.
Abortion/NN
Case/NN
Organizations/NNS
supporting/VBG
the/DT
constitutional/JJ
right/NN
to/TO
abortion/NN
filed/VBD
a/DT
friend-of-the-court/JJ
brief/NN
in/IN
two/CD
Supreme/NNP
Court/NNP
cases/NNS
in/IN
behalf/NN
of/IN
an/DT
unprecedented/JJ
number/NN
of/IN
groups/NNS
./.
The/DT
brief/NN
,/,
coordinated/VBN
by/IN
the/DT
American/NNP
Civil/NNP
Liberties/NNP
Union/NNP
and/CC
Planned/NNP
Parenthood/NNP
Federation/NNP
of/IN
America/NNP
,/,
was/VBD
filed/VBN
in/IN
behalf/NN
of/IN
274/CD
groups/NNS
,/,
although/IN
many/JJ
of/IN
them/PRP
were/VBD
small/JJ
community/NN
religious/JJ
organizations/NNS
rather/RB
than/IN
national/JJ
in/IN
membership/NN
./.
The/DT
brief/NN
argued/VBD
that/IN
the/DT
1973/CD
decision/NN
recognizing/VBG
the/DT
right/NN
to/TO
abortion/NN
,/,
Roe/NNP
vs./IN
Wade/NNP
,/,
was/VBD
correct/JJ
and/CC
should/MD
n't/RB
be/VB
reconsidered/VBN
./.
After/IN
a/DT
long/JJ
day/NN
tending/VBG
the/DT
searing/VBG
,/,
blackened/VBN
furnaces/NNS
of/IN
the/DT
Panzhihua/NNP
Iron/NNP
&/CC
Steel/NNP
Co./NNP
,/,
Li/NNP
Wankui/NNP
would/MD
like/VB
to/TO
relax/VB
away/RB
from/IN
the/DT
factory/NN
./.
But/CC
in/IN
these/DT
parts/NNS
,/,
the/DT
factory/NN
is/VBZ
everywhere/RB
./.
It/PRP
is/VBZ
employer/NN
,/,
political/JJ
czar/NN
and/CC
dance-committee/JJ
chairman/NN
./.
Inside/IN
the/DT
sprawling/VBG
compounds/NNS
that/WDT
house/VBP
55,000/CD
workers/NNS
and/CC
their/PRP$
families/NNS
,/,
the/DT
factory/NN
operates/VBZ
the/DT
schools/NNS
,/,
restaurants/NNS
,/,
hospital/NN
and/CC
activities/NNS
center/NN
./.
The/DT
factory/NN
sells/VBZ
Mr./NNP
Li/NNP
his/PRP$
food/NN
and/CC
furniture/NN
and/CC
publishes/VBZ
his/PRP$
newspaper/NN
./.
It/PRP
even/RB
restricts/VBZ
him/PRP
and/CC
his/PRP$
wife/NN
to/TO
one/CD
child/NN
./.
Sitting/VBG
at/IN
home/NN
with/IN
his/PRP$
family/NN
around/IN
the/DT
dining/NN
table/NN
,/,
Mr./NNP
Li/NNP
turns/VBZ
on/IN
the/DT
evening/NN
news/NN
./.
``/``
This/DT
is/VBZ
the/DT
Panzhihua/NNP
Factory/NNP
broadcasting/NN
station/NN
,/,
''/''
a/DT
perky/JJ
anchorwoman/NN
says/VBZ
./.
``/``
And/CC
here/RB
's/VBZ
what/WP
happened/VBD
today/NN
at/IN
our/PRP$
factory/NN
./.
''/''
Panzhihua/NNP
is/VBZ
the/DT
ultimate/JJ
company/NN
town/NN
./.
Nestled/VBN
in/IN
the/DT
remote/JJ
mountains/NNS
of/IN
southern/JJ
Sichuan/NNP
province/NN
about/RB
1,200/CD
miles/NNS
southwest/RB
of/IN
Beijing/NNP
,/,
it/PRP
is/VBZ
virtually/RB
cut/VBN
off/RP
from/IN
the/DT
rest/NN
of/IN
China/NNP
./.
With/IN
few/JJ
businesses/NNS
nearby/RB
,/,
it/PRP
's/VBZ
up/RP
to/TO
factory/NN
leaders/NNS
to/TO
build/VB
high-rise/JJ
housing/NN
and/CC
organize/VB
sports/NNS
meets/NNS
./.
They/PRP
truck/VBP
in/IN
fresh/JJ
fish/NN
from/IN
the/DT
east/JJ
coast/NN
and/CC
import/VBP
television/NN
sets/NNS
from/IN
Japan/NNP
./.
``/``
A/DT
Chinese/JJ
factory/NN
director/NN
could/MD
be/VB
a/DT
mayor/NN
in/IN
the/DT
U.S./NNP
,/,
''/''
says/VBZ
Mr./NNP
Li/NNP
./.
``/``
But/CC
I/PRP
do/VBP
n't/RB
think/VB
an/DT
American/JJ
mayor/NN
could/MD
handle/VB
a/DT
Chinese/JJ
factory/NN
./.
''/''
Despite/IN
a/DT
decade-long/JJ
attempt/NN
to/TO
revamp/VB
the/DT
socialist/JJ
economy/NN
,/,
China/NNP
's/POS
mega-welfare/JJ
state/NN
is/VBZ
alive/JJ
and/CC
well/RB
./.
Health/NN
care/NN
is/VBZ
free/JJ
,/,
housing/NN
costs/VBZ
just/RB
pennies/NNS
and/CC
food/NN
is/VBZ
heavily/RB
subsidized/VBN
./.
At/IN
Panzhihua/NNP
,/,
as/IN
in/IN
other/JJ
big/JJ
state-run/JJ
factories/NNS
,/,
workers/NNS
still/RB
can/MD
count/VB
on/IN
a/DT
cradle-to-grave/JJ
safety/NN
net/NN
./.
Factory/NN
officials/NNS
estimate/VBP
that/IN
more/JJR
than/IN
10/CD
%/NN
of/IN
the/DT
work/NN
force/NN
here/RB
is/VBZ
redundant/JJ
,/,
but/CC
layoffs/NNS
are/VBP
n't/RB
allowed/VBN
./.
Even/RB
factory/NN
workers/NNS
'/POS
children/NNS
are/VBP
guaranteed/VBN
jobs/NNS
./.
The/DT
industrial/JJ
monoliths/NNS
are/VBP
so/RB
deeply/RB
involved/VBN
in/IN
the/DT
welfare/NN
system/NN
that/IN
China/NNP
's/POS
leaders/NNS
may/MD
never/RB
be/VB
able/JJ
to/TO
modernize/VB
them/PRP
,/,
despite/IN
their/PRP$
glaring/JJ
economic/JJ
inefficiency/NN
./.
Though/NNP
the/DT
Panzhihua/NNP
factory/NN
itself/PRP
is/VBZ
profitable/JJ
,/,
many/JJ
such/JJ
enterprises/NNS
are/VBP
n't/RB
./.
Subsidies/NNS
for/IN
money-losing/JJ
enterprises/NNS
totaled/VBD
$/$
18/CD
billion/CD
last/JJ
year/NN
,/,
or/CC
about/RB
one-third/JJ
the/DT
total/JJ
state/NN
revenue/NN
./.
Life/NNP
in/IN
the/DT
Panzhihua/NNP
factory/NN
beats/VBZ
a/DT
regular/JJ
rhythm/NN
,/,
and/CC
fully/RB
absorbs/VBZ
workers/NNS
such/JJ
as/IN
Mr./NNP
Li/NNP
./.
A/DT
muscular/JJ
38-year-old/JJ
,/,
he/PRP
rises/VBZ
each/DT
morning/NN
at/IN
6/CD
a.m./NN
to/TO
prepare/VB
for/IN
his/PRP$
shift/NN
./.
He/PRP
is/VBZ
entitled/VBN
to/TO
one/CD
day/NN
off/RP
after/IN
each/DT
seven/CD
days/NNS
of/IN
work/NN
./.
Throwing/VBG
on/IN
sweat/NN
pants/NNS
and/CC
a/DT
T-shirt/NN
,/,
he/PRP
pops/VBZ
downstairs/NN
to/TO
a/DT
food/NN
shop/NN
,/,
one/CD
of/IN
dozens/NNS
run/VBN
by/IN
the/DT
factory/NN
in/IN
Panzhihua/NNP
's/POS
residential/JJ
area/NN
./.
Mr./NNP
Li/NNP
,/,
whose/WP$
pay/NN
is/VBZ
the/DT
equivalent/NN
of/IN
about/RB
$/$
80/CD
a/DT
month/NN
,/,
buys/VBZ
steamed/VBN
buns/NNS
and/CC
rice/NN
porridge/NN
for/IN
his/PRP$
family/NN
./.
Breakfast/NN
for/IN
three/CD
costs/VBZ
a/DT
quarter/NN
./.
After/IN
eating/VBG
,/,
he/PRP
heads/VBZ
to/TO
the/DT
factory/NN
./.
Panzhihua/NNP
provides/VBZ
free/JJ
bus/NN
service/NN
,/,
but/CC
he/PRP
prefers/VBZ
the/DT
20-minute/JJ
walk/NN
./.
At/IN
the/DT
gate/NN
of/IN
the/DT
factory/NN
,/,
a/DT
huge/JJ
sign/NN
greets/VBZ
Mr./NNP
Li/NNP
and/CC
his/PRP$
co-workers/NNS
:/:
``/``
Happily/RB
,/,
happily/RB
come/VB
to/TO
work/VB
!/.
''/''
Donning/VBG
denims/NNS
and/CC
a/DT
hard/JJ
hat/NN
,/,
he/PRP
heads/VBZ
to/TO
the/DT
steel-making/JJ
furnace/NN
./.
Since/IN
the/DT
temperature/NN
next/JJ
to/TO
it/PRP
can/MD
reach/VB
540/CD
degrees/NNS
Fahrenheit/NNP
,/,
Panzhihua/NNP
Iron/NNP
&/CC
Steel/NNP
provides/VBZ
workers/NNS
as/IN
many/JJ
free/JJ
orange-flavored/JJ
soft/JJ
drinks/NNS
as/IN
they/PRP
want/VBP
./.
The/DT
factory/NN
produces/VBZ
the/DT
drinks/NNS
in-house/JJ
./.
At/IN
lunchtime/NN
,/,
Mr./NNP
Li/NNP
walks/VBZ
to/TO
one/CD
of/IN
the/DT
59/CD
cafeterias/NNS
the/DT
factory/NN
operates/VBZ
./.
It/PRP
's/VBZ
a/DT
chaotic/JJ
scene/NN
./.
Scraps/NNS
of/IN
meat/NN
and/CC
bones/NNS
litter/VBP
the/DT
bare/JJ
concrete/NN
floor/NN
./.
A/DT
slop-bucket/NN
at/IN
the/DT
doorway/NN
is/VBZ
filled/VBN
with/IN
a/DT
liquid/NN
turned/VBD
blood-red/NN
from/IN
Sichuan/NNP
peppers/NNS
and/CC
hot/JJ
sauce/NN
./.
The/DT
place/NN
does/VBZ
n't/RB
look/VB
like/IN
much/JJ
,/,
but/CC
the/DT
food/NN
is/VBZ
good/JJ
,/,
and/CC
cheap/JJ
./.
For/IN
about/RB
30/CD
cents/NNS
,/,
Mr./NNP
Li/NNP
buys/VBZ
a/DT
bowl/NN
of/IN
pork/NN
,/,
vegetables/NNS
and/CC
rice/NN
./.
At/IN
the/DT
end/NN
of/IN
Mr./NNP
Li/NNP
's/POS
workday/NN
,/,
as/IN
a/DT
new/JJ
shift/NN
prepares/VBZ
to/TO
take/VB
over/RP
,/,
the/DT
factory/NN
's/POS
propaganda/NN
officials/NNS
go/VBP
to/TO
work/VB
./.
For/IN
half/PDT
an/DT
hour/NN
they/PRP
relate/VBP
to/TO
groups/NNS
of/IN
workers/NNS
the/DT
latest/JJS
news/NN
and/CC
views/NNS
from/IN
the/DT
Communist/NNP
Party/NNP
./.
They/PRP
read/VBP
speeches/NNS
from/IN
top/JJ
leaders/NNS
and/CC
slam/VBP
U.S./NNP
sanctions/NNS
on/IN
China/NNP
imposed/VBN
after/IN
the/DT
June/NNP
4/CD
massacre/NN
of/IN
pro-democracy/JJ
protesters/NNS
in/IN
Beijing/NNP
./.
``/``
We/PRP
want/VBP
to/TO
make/VB
sure/JJ
that/IN
workers/NNS
have/VBP
a/DT
correct/JJ
opinion/NN
about/IN
events/NNS
,/,
''/''
says/VBZ
Yuan/NNP
Changyong/NNP
,/,
the/DT
local/JJ
Party/NNP
chief/NN
./.
The/DT
propagandists/NNS
also/RB
do/VBP
their/PRP$
part/NN
in/IN
the/DT
national/JJ
effort/NN
to/TO
limit/VB
births/NNS
./.
Teams/NNS
of/IN
officials/NNS
track/VBP
the/DT
contraceptive/JJ
methods/NNS
their/PRP$
workers/NNS
employ/VBP
and/CC
even/RB
chart/VBP
menstrual/JJ
cycles/NNS
of/IN
female/JJ
employees/NNS
./.
They/PRP
work/VBP
by/IN
persuasion/NN
and/CC
coercion/NN
,/,
alternating/VBG
doses/NNS
of/IN
propaganda/NN
with/IN
threats/NNS
of/IN
financial/JJ
penalties/NNS
for/IN
``/``
unplanned/JJ
''/''
second/JJ
births/NNS
./.
Zhang/NNP
Shanyun/NNP
,/,
one/CD
of/IN
Mr./NNP
Li/NNP
's/POS
bosses/NNS
,/,
knows/VBZ
the/DT
system/NN
well/RB
./.
Like/IN
many/JJ
married/VBN
workers/NNS
,/,
Mr./NNP
Zhang/NNP
lives/VBZ
alone/RB
at/IN
the/DT
factory/NN
./.
His/PRP$
wife/NN
remains/VBZ
in/IN
the/DT
countryside/NN
,/,
tending/VBG
the/DT
farm/NN
land/NN
they/PRP
possess/VBP
./.
Whenever/WRB
Mr./NNP
Zhang/NNP
wants/VBZ
to/TO
return/VB
to/TO
his/PRP$
farm/NN
,/,
he/PRP
must/MD
fill/VB
out/RP
a/DT
form/NN
detailing/VBG
what/WP
kind/NN
of/IN
birth-control/JJ
device/NN
he/PRP
and/CC
his/PRP$
wife/NN
will/MD
use/VB
./.
The/DT
document/NN
must/MD
be/VB
certified/VBN
by/IN
factory/NN
officials/NNS
and/CC
shown/VBN
to/TO
leaders/NNS
in/IN
his/PRP$
wife/NN
's/POS
village/NN
./.
``/``
No/DT
document/NN
,/,
no/DT
visit/NN
,/,
''/''
smiles/VBZ
Li/NNP
Jihong/NNP
,/,
who/WP
heads/VBZ
birth-control/JJ
efforts/NNS
at/IN
the/DT
factory/NN
./.
Mr./NNP
Li/NNP
,/,
however/RB
,/,
is/VBZ
able/JJ
to/TO
live/VB
with/IN
his/PRP$
wife/NN
full-time/JJ
./.
When/WRB
he/PRP
returns/VBZ
home/NN
,/,
he/PRP
ties/VBZ
on/IN
an/DT
apron/NN
and/CC
begins/VBZ
to/TO
prepare/VB
dinner/NN
for/IN
his/PRP$
family/NN
./.
Most/JJS
of/IN
the/DT
food/NN
comes/VBZ
to/TO
him/PRP
via/IN
the/DT
factory/NN
,/,
which/WDT
buys/VBZ
80/CD
million/CD
tons/NNS
of/IN
produce/NN
a/DT
year/NN
./.
The/DT
factory/NN
sells/VBZ
to/TO
workers/NNS
at/IN
cost/NN
,/,
which/WDT
means/VBZ
prices/NNS
are/VBP
about/RB
50/CD
%/NN
below/IN
what/WP
the/DT
handful/NN
of/IN
independent/JJ
local/JJ
merchants/NNS
charge/VBP
./.
For/IN
big/JJ
occasions/NNS
,/,
the/DT
factory/NN
brings/VBZ
in/IN
special/JJ
treats/NNS
./.
Earlier/RBR
this/DT
year/NN
,/,
officials/NNS
shipped/VBD
in/RB
fresh/JJ
crabs/NNS
from/IN
Guangdong/NNP
province/NN
./.
It/PRP
turned/VBD
out/RP
that/IN
few/JJ
workers/NNS
here/RB
in/IN
the/DT
hills/NNS
of/IN
Sichuan/NNP
had/VBD
ever/RB
seen/VBN
them/PRP
,/,
so/IN
the/DT
factory/NN
TV/NN
station/NN
ran/VBD
a/DT
broadcast/NN
on/IN
the/DT
correct/JJ
way/NN
to/TO
eat/VB
Guangdong/NNP
crabs/NNS
./.
The/DT
Li/NNP
family/NN
home/NN
is/VBZ
a/DT
simple/JJ
,/,
two-room/JJ
apartment/NN
with/IN
bare/JJ
concrete/NN
floors/NNS
and/CC
whitewashed/VBN
walls/NNS
./.
The/DT
basic/JJ
furniture/NN
is/VBZ
provided/VBN
by/IN
the/DT
factory/NN
,/,
for/IN
five/CD
cents/NNS
a/DT
month/NN
./.
Most/JJS
workers/NNS
get/VBP
a/DT
bed/NN
,/,
desk/NN
and/CC
bureau/NN
./.
Engineers/NNS
also/RB
get/VBP
a/DT
bookcase/NN
./.
Mr./NNP
Li/NNP
's/POS
wife/NN
,/,
Xia/NNP
Huaqiong/NNP
,/,
also/RB
works/VBZ
at/IN
the/DT
factory/NN
,/,
tending/VBG
the/DT
water/NN
meters/NNS
during/IN
the/DT
graveyard/NN
shift/NN
./.
There/EX
are/VBP
few/JJ
prospects/NNS
for/IN
upward/JJ
mobility/NN
,/,
and/CC
Mr./NNP
Li/NNP
's/POS
daughter/NN
,/,
seven-year-old/JJ
Li/NNP
Shu/NNP
,/,
is/VBZ
certain/JJ
to/TO
toil/VB
at/IN
the/DT
factory/NN
too/RB
someday/RB
,/,
as/IN
are/VBP
more/JJR
than/IN
10,000/CD
of/IN
the/DT
workers/NNS
'/POS
children/NNS
./.
Li/NNP
Shu/NNP
is/VBZ
in/IN
the/DT
second/JJ
grade/NN
at/IN
the/DT
Xiangyang/NNP
Village/NNP
Elementary/NNP
School/NNP
for/IN
Workers/NNP
'/POS
Children/NNS
,/,
one/CD
of/IN
31/CD
schools/NNS
subsidized/VBN
by/IN
the/DT
factory/NN
at/IN
a/DT
cost/NN
of/IN
more/JJR
than/IN
half/PDT
a/DT
million/CD
dollars/NNS
a/DT
year/NN
./.
Her/PRP$
tuition/NN
is/VBZ
about/RB
$/$
1/CD
a/DT
semester/NN
./.
Mr./NNP
Li/NNP
says/VBZ
he/PRP
is/VBZ
content/JJ
living/VBG
in/IN
this/DT
one-company/JJ
town/NN
./.
But/CC
he/PRP
concedes/VBZ
that/IN
the/DT
pressures/NNS
of/IN
the/DT
all-powerful/JJ
factory/NN
sometimes/RB
are/VBP
tough/JJ
to/TO
bear/VB
./.
He/PRP
could/MD
do/VB
with/IN
more/JJR
excitement/NN
,/,
he/PRP
says/VBZ
./.
Most/JJS
evenings/NNS
after/IN
the/DT
news/NN
,/,
he/PRP
leaves/VBZ
his/PRP$
wife/NN
in/IN
front/NN
of/IN
the/DT
TV/NN
set/NN
and/CC
wanders/VBZ
restlessly/RB
around/IN
his/PRP$
quiet/JJ
neighborhood/NN
./.
He/PRP
pauses/VBZ
frequently/RB
to/TO
greet/VB
familiar/JJ
faces/NNS
:/:
co-workers/NNS
from/IN
the/DT
factory/NN
./.
Inevitably/RB
,/,
he/PRP
is/VBZ
drawn/VBN
to/TO
the/DT
Cultural/NNP
Center/NNP
,/,
a/DT
drab/JJ
,/,
five-story/JJ
structure/NN
with/IN
meeting/NN
rooms/NNS
,/,
stores/NNS
,/,
coffee/NN
shops/NNS
,/,
a/DT
large/JJ
swimming/VBG
pool/NN
and/CC
a/DT
dance/NN
hall/NN
./.
The/DT
center/NN
,/,
built/VBN
and/CC
run/VBN
by/IN
Panzhihua/NNP
Iron/NNP
&/CC
Steel/NNP
,/,
is/VBZ
the/DT
beginning/NN
and/CC
end/NN
of/IN
social/JJ
life/NN
in/IN
this/DT
town/NN
./.
Mr./NNP
Li/NNP
walks/VBZ
upstairs/NN
to/TO
the/DT
center/NN
's/POS
second-floor/JJ
library/NN
,/,
a/DT
poorly/RB
lit/VBN
room/NN
where/WRB
he/PRP
spends/VBZ
many/JJ
hours/NNS
leafing/VBG
through/IN
a/DT
thin/JJ
selection/NN
of/IN
state-controlled/JJ
periodicals/NNS
./.
He/PRP
pulls/VBZ
out/IN
a/DT
newspaper/NN
:/:
The/DT
Panzhihua/NNP
Iron/NNP
&/CC
Steel/NNP
Co/NNP
./.
Daily/NNP
./.
``/``
It/PRP
's/VBZ
a/DT
good/JJ
read/NN
,/,
''/''
Mr./NNP
Li/NNP
says/VBZ
./.
``/``
Quite/RB
informative/JJ
./.
''/''
Today/NN
's/POS
lead/JJ
story/NN
:/:
``/``
Manager/NNP
Zhao/NNP
Inspects/VBZ
Operation/NN
of/IN
No./NN
4/CD
Furnace/NN
./.
''/''
Not/RB
surprisingly/RB
in/IN
this/DT
remote/JJ
outpost/NN
,/,
many/JJ
of/IN
the/DT
single/JJ
factory/NN
workers/NNS
here/RB
fall/VBP
in/IN
love/NN
with/IN
each/DT
other/JJ
./.
``/``
We/PRP
have/VBP
a/DT
very/RB
small/JJ
social/JJ
circle/NN
,/,
''/''
says/VBZ
Ma/NNP
Yongjian/NNP
,/,
the/DT
company/NN
secretary/NN
general/NN
./.
``/``
A/DT
lot/NN
of/IN
the/DT
young/JJ
workers/NNS
end/VBP
up/RP
getting/VBG
married/VBN
./.
''/''
To/TO
facilitate/VB
such/JJ
productive/JJ
arrangements/NNS
,/,
the/DT
factory/NN
organizes/VBZ
dances/NNS
each/DT
night/NN
,/,
often/RB
outdoors/RB
on/IN
a/DT
concrete/JJ
promenade/NN
along/IN
the/DT
banks/NNS
of/IN
the/DT
Jinshajiang/NNP
River/NNP
./.
On/IN
this/DT
evening/NN
,/,
the/DT
dancers/NNS
seem/VBP
reluctant/JJ
,/,
as/IN
a/DT
sour/JJ
eight-piece/JJ
band/NN
plods/VBZ
through/IN
a/DT
series/NN
of/IN
Chinese/JJ
pop/NN
songs/NNS
./.
But/CC
things/NNS
come/VBP
to/TO
life/NN
when/WRB
a/DT
slender/JJ
woman/NN
in/IN
a/DT
slinky/JJ
black/JJ
dress/NN
takes/VBZ
the/DT
microphone/NN
./.
The/DT
band/NN
starts/VBZ
in/RP
,/,
and/CC
she/PRP
begins/VBZ
to/TO
sing/VB
``/``
Happy/JJ
birthday/NN
to/TO
you/PRP
,/,
''/''
even/RB
though/IN
it/PRP
is/VBZ
n't/RB
anyone/NN
's/POS
birthday/NN
./.
Immediately/RB
,/,
hundreds/NNS
of/IN
couples/NNS
leap/VBP
to/TO
their/PRP$
feet/NNS
and/CC
rush/VBP
onto/IN
the/DT
floor/NN
,/,
dancing/VBG
their/PRP$
well-rehearsed/JJ
three-step/NN
,/,
cheek-to-cheek/JJ
./.
Happy/NNP
Birthday/NNP
,/,
apparently/RB
a/DT
big/JJ
hit/NN
in/IN
Panzhihua/NNP
,/,
lasts/VBZ
for/IN
10/CD
glorious/JJ
minutes/NNS
./.
As/IN
the/DT
band/NN
plays/VBZ
,/,
and/CC
with/IN
romance/NN
in/IN
the/DT
air/NN
,/,
Mr./NNP
Li/NNP
recalls/VBZ
how/WRB
he/PRP
came/VBD
to/TO
Panzhihua/NNP
./.
The/DT
factory/NN
,/,
one/CD
of/IN
Chairman/NNP
Mao/NNP
's/POS
oddest/JJS
follies/NNS
,/,
dates/VBZ
to/TO
1965/CD
./.
Mao/NNP
was/VBD
sure/JJ
that/IN
the/DT
U.S./NNP
,/,
or/CC
perhaps/RB
the/DT
Soviet/NNP
Union/NNP
,/,
was/VBD
planning/VBG
to/TO
attack/VB
China/NNP
's/POS
coast/NN
,/,
so/IN
he/PRP
decided/VBD
to/TO
set/VB
up/IN
vital/JJ
industries/NNS
deep/JJ
in/IN
the/DT
remote/JJ
interior/NN
./.
Like/IN
tens/NNS
of/IN
thousands/NNS
of/IN
others/NNS
,/,
Mr./NNP
Li/NNP
was/VBD
ordered/VBN
to/TO
go/VB
to/TO
Panzhihua/NNP
,/,
in/IN
1971/CD
./.
``/``
I/PRP
lived/VBD
in/IN
a/DT
straw-and-mud/JJ
house/NN
at/IN
the/DT
time/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
But/CC
I/PRP
was/VBD
happy/JJ
to/TO
be/VB
here/RB
,/,
to/TO
carry/VB
on/IN
the/DT
fight/NN
against/IN
the/DT
imperialists/NNS
and/CC
the/DT
revisionists/NNS
./.
''/''
Today/NN
the/DT
perceived/VBN
threat/NN
has/VBZ
passed/VBN
,/,
but/CC
the/DT
factory/NN
is/VBZ
thriving/VBG
./.
What/WP
keeps/VBZ
Mr./NNP
Li/NNP
in/IN
Panzhihua/NNP
?/.
Partly/RB
the/DT
system/NN
./.
While/IN
workers/NNS
ca/MD
n't/RB
easily/RB
be/VB
fired/VBN
,/,
they/PRP
also/RB
ca/MD
n't/RB
easily/RB
quit/VB
to/TO
find/VB
jobs/NNS
elsewhere/RB
./.
The/DT
Li/NNP
family/NN
could/MD
apply/VB
for/IN
permission/NN
to/TO
do/VB
so/RB
,/,
but/CC
has/VBZ
n't/RB
tried/VBD
./.
``/``
I/PRP
expect/VBP
I/PRP
'll/MD
be/VB
in/IN
Panzhihua/NNP
for/IN
the/DT
rest/NN
of/IN
my/PRP$
life/NN
,/,
''/''
Mr./NNP
Li/NNP
says/VBZ
./.
``/``
The/DT
No./NN
1/CD
high/JJ
school/NN
is/VBZ
pretty/RB
good/JJ
,/,
and/CC
I/PRP
have/VBP
to/TO
think/VB
of/IN
my/PRP$
daughter/NN
's/POS
future/NN
./.
''/''
Others/NNS
have/VBP
fled/VBN
the/DT
remote/JJ
factory/NN
./.
Beginning/VBG
in/IN
1979/CD
,/,
it/PRP
offered/VBD
its/PRP$
original/JJ
settlers/NNS
a/DT
chance/NN
to/TO
leave/VB
./.
Many/JJ
had/VBD
been/VBN
forced/VBN
to/TO
come/VB
,/,
often/RB
leaving/VBG
their/PRP$
families/NNS
and/CC
possessions/NNS
behind/RB
./.
When/WRB
the/DT
opportunity/NN
finally/RB
arose/VBD
,/,
thousands/NNS
of/IN
workers/NNS
departed/VBD
,/,
including/VBG
virtually/RB
all/DT
of/IN
the/DT
factory/NN
's/POS
college/NN
graduates/NNS
and/CC
senior/JJ
engineers/NNS
./.
Ma/NNP
Zhijie/NNP
,/,
deputy/JJ
general/JJ
manager/NN
of/IN
the/DT
factory/NN
's/POS
trading/NN
department/NN
,/,
wants/VBZ
his/PRP$
eight-year-old/JJ
son/NN
to/TO
have/VB
broader/JJR
horizons/NNS
,/,
and/CC
believes/VBZ
education/NN
is/VBZ
the/DT
best/JJS
ticket/NN
out/IN
of/IN
Panzhihua/NNP
./.
He/PRP
is/VBZ
pushing/VBG
his/PRP$
child/NN
to/TO
excel/VB
in/IN
school/NN
and/CC
teaches/VBZ
him/PRP
English/NNP
at/IN
home/NN
./.
``/``
I/PRP
dream/VBP
that/IN
my/PRP$
son/NN
will/MD
attend/VB
college/NN
and/CC
find/VB
a/DT
good/JJ
job/NN
somewhere/RB
else/RB
,/,
''/''
Mr./NNP
Ma/NNP
says/VBZ
./.
Panzhihua/NNP
's/POS
isolation/NN
is/VBZ
immediately/RB
apparent/JJ
./.
The/DT
area/NN
was/VBD
off/IN
limits/NNS
to/TO
foreign/JJ
visitors/NNS
and/CC
reporters/NNS
until/IN
1987/CD
,/,
and/CC
remains/VBZ
effectively/RB
sealed/VBN
off/RP
from/IN
contact/NN
with/IN
the/DT
outside/NN
./.
What/WP
the/DT
factory/NN
's/POS
workers/NNS
know/VBP
of/IN
the/DT
world/NN
comes/VBZ
filtered/VBN
through/IN
the/DT
propaganda/NN
machine/NN
of/IN
official/JJ
newspapers/NNS
and/CC
television/NN
,/,
as/RB
well/RB
as/IN
political/JJ
study/NN
sessions/NNS
./.
Workers/NNS
have/VBP
a/DT
very/RB
sketchy/JJ
knowledge/NN
,/,
for/IN
example/NN
,/,
about/IN
the/DT
pro-democracy/JJ
movement/NN
,/,
and/CC
its/PRP$
bloody/JJ
suppression/NN
,/,
in/IN
Beijing/NNP
this/DT
spring/NN
./.
At/IN
one/CD
point/NN
,/,
Mr./NNP
Li/NNP
repeats/VBZ
the/DT
theme/NN
of/IN
a/DT
recent/JJ
political/JJ
study/NN
class/NN
and/CC
harangues/VBZ
his/PRP$
American/JJ
visitor/NN
about/IN
U.S./NNP
sanctions/NNS
against/IN
China/NNP
./.
``/``
The/DT
Chinese/NNS
and/CC
American/JJ
people/NNS
have/VBP
great/JJ
warmth/NN
for/IN
each/DT
other/JJ
,/,
''/''
Mr./NNP
Li/NNP
says/VBZ
,/,
``/``
but/CC
I/PRP
must/MD
tell/VB
you/PRP
frankly/RB
that/IN
I/PRP
disagree/VBP
with/IN
President/NNP
Bush/NNP
's/POS
policy/NN
toward/IN
China/NNP
./.
''/''
His/PRP$
visitor/NN
explains/VBZ
that/IN
,/,
to/TO
many/JJ
in/IN
the/DT
U.S./NNP
,/,
the/DT
sanctions/NNS
were/VBD
considered/VBN
too/RB
moderate/JJ
./.
Many/JJ
of/IN
these/DT
Americans/NNS
were/VBD
incensed/VBN
by/IN
the/DT
killings/NNS
in/IN
Beijing/NNP
and/CC
denounced/VBD
the/DT
Chinese/JJ
government/NN
./.
``/``
Well/RB
,/,
I/PRP
certainly/RB
did/VBD
n't/RB
know/VB
any/DT
of/IN
that/DT
,/,
''/''
Mr./NNP
Li/NNP
says/VBZ
,/,
and/CC
abruptly/RB
closes/VBZ
the/DT
conversation/NN
./.
As/IN
Mr./NNP
Li/NNP
begins/VBZ
his/PRP$
walk/NN
back/RB
home/NN
,/,
he/PRP
displays/VBZ
a/DT
slight/JJ
limp/NN
,/,
the/DT
result/NN
of/IN
a/DT
back/NN
injury/NN
./.
Last/JJ
year/NN
,/,
the/DT
factory/NN
sent/VBD
him/PRP
to/TO
northeast/JJ
China/NNP
to/TO
recuperate/VB
for/IN
six/CD
months/NNS
,/,
all/DT
expenses/NNS
paid/VBN
./.
The/DT
factory/NN
provides/VBZ
free/JJ
medical/JJ
care/NN
to/TO
all/DT
workers/NNS
and/CC
their/PRP$
families/NNS
./.
It/PRP
runs/VBZ
a/DT
modern/JJ
,/,
500-bed/JJ
hospital/NN
and/CC
eight/CD
clinics/NNS
,/,
supported/VBN
by/IN
$/$
2.5/CD
million/CD
a/DT
year/NN
in/IN
subsidies/NNS
./.
When/WRB
Mr./NNP
Li/NNP
dies/VBZ
,/,
Panzhihua/NNP
Iron/NNP
&/CC
Steel/NNP
will/MD
pay/VB
for/IN
his/PRP$
cremation/NN
./.
And/CC
the/DT
next/JJ
generation/NN
will/MD
carry/VB
on/RP
./.
At/IN
the/DT
hospital/NN
,/,
Zhong/NNP
Desheng/NNP
,/,
the/DT
director/NN
,/,
dons/VBZ
a/DT
doctor/NN
's/POS
smock/NN
and/CC
leads/VBZ
a/DT
visitor/NN
into/IN
the/DT
maternity/NN
ward/NN
./.
A/DT
factory/NN
worker/NN
who/WP
has/VBZ
just/RB
given/VBN
birth/NN
to/TO
a/DT
baby/NN
girl/NN
lies/VBZ
on/IN
a/DT
bed/NN
,/,
looking/VBG
bewildered/VBN
./.
Her/PRP$
baby/NN
has/VBZ
been/VBN
snatched/VBN
up/RP
by/IN
the/DT
nurses/NNS
and/CC
placed/VBN
alongside/IN
nine/CD
others/NNS
,/,
each/DT
tied/VBD
up/RP
in/IN
a/DT
tight/JJ
cotton/NN
bundle/NN
./.
Mr./NNP
Zhong/NNP
motions/VBZ
to/TO
the/DT
wriggling/VBG
bundles/NNS
./.
``/``
These/DT
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
are/VBP
the/DT
future/JJ
workers/NNS
of/IN
Panzhihua/NNP
Iron/NNP
&/CC
Steel/NNP
./.
''/''
Four/CD
of/IN
Britain/NNP
's/POS
biggest/JJS
banks/NNS
said/VBD
they/PRP
plan/VBP
to/TO
sell/VB
jointly/RB
owned/VBN
Yorkshire/NNP
Bank/NNP
Group/NNP
in/IN
an/DT
auction/NN
that/WDT
could/MD
raise/VB
between/IN
#/#
850/CD
million/CD
$/$
1.33/CD
billion/CD
1/CD
billion/CD
$/$
1.57/CD
billion/CD
National/NNP
Westminster/NNP
Bank/NNP
PLC/NNP
,/,
Yorkshire/NNP
Bank/NNP
's/POS
biggest/JJS
holder/NN
with/IN
a/DT
40/CD
%/NN
stake/NN
,/,
said/VBD
it/PRP
,/,
Barclays/NNP
PLC/NNP
,/,
Lloyds/NNP
Bank/NNP
PLC/NNP
and/CC
Royal/NNP
Bank/NNP
of/IN
Scotland/NNP
Group/NNP
PLC/NNP
decided/VBD
to/TO
sell/VB
the/DT
250-branch/JJ
U.K./NNP
bank/NN
after/IN
receiving/VBG
``/``
a/DT
number/NN
of/IN
approaches/NNS
''/''
from/IN
potential/JJ
purchasers/NNS
./.
They/PRP
declined/VBD
to/TO
identify/VB
possible/JJ
bidders/NNS
./.
At/IN
a/DT
news/NN
conference/NN
here/RB
yesterday/NN
,/,
NatWest/NNP
officials/NNS
said/VBD
they/PRP
expect/VBP
potential/JJ
interest/NN
from/IN
banks/NNS
throughout/IN
continental/JJ
Europe/NNP
,/,
Australia/NNP
and/CC
the/DT
U.S/NNP
./.
Yorkshire/NNP
Bank/NNP
,/,
which/WDT
had/VBD
pretax/JJ
profit/NN
of/IN
#/#
100.4/CD
million/CD
and/CC
#/#
3.19/CD
billion/CD
in/IN
assets/NNS
last/JJ
year/NN
,/,
has/VBZ
Britain/NNP
's/POS
ninth-largest/JJ
branch/NN
network/NN
./.
It/PRP
is/VBZ
viewed/VBN
by/IN
market/NN
analysts/NNS
as/IN
a/DT
potential/JJ
target/NN
for/IN
banks/NNS
aiming/VBG
to/TO
boost/VB
their/PRP$
U.K./NNP
presence/NN
prior/RB
to/TO
the/DT
1992/CD
development/NN
of/IN
a/DT
single/JJ
market/NN
in/IN
financial/JJ
services/NNS
in/IN
the/DT
European/NNP
Community/NNP
./.
Analysts/NNS
have/VBP
said/VBD
the/DT
bank/NN
could/MD
fetch/VB
a/DT
price/NN
of/IN
between/IN
8.5/CD
and/CC
10/CD
times/NNS
pretax/JJ
profit/NN
--/:
or/CC
between/IN
#/#
850/CD
million/CD
and/CC
#/#
1/CD
billion/CD
./.
Bill/NNP
Barron/NNP
,/,
a/DT
NatWest/NNP
general/JJ
manager/NN
,/,
said/VBD
the/DT
banks/NNS
decided/VBD
to/TO
push/VB
ahead/RB
with/IN
the/DT
sale/NN
despite/IN
yesterday/NN
's/POS
sharp/JJ
stock-market/JJ
fall/NN
in/IN
London/NNP
because/IN
the/DT
decision/NN
was/VBD
strategic/JJ
and/CC
independent/JJ
of/IN
market/NN
valuations/NNS
./.
The/DT
consortium-ownership/NN
arrangement/NN
,/,
which/WDT
dates/VBZ
from/IN
a/DT
financial/JJ
reconstruction/NN
of/IN
Yorkshire/NNP
Bank/NNP
in/IN
1911/CD
,/,
is/VBZ
outmoded/VBN
for/IN
the/DT
increasingly/RB
competitive/JJ
U.K./NNP
market/NN
,/,
analysts/NNS
say/VBP
./.
Barclays/NNP
owns/VBZ
32/CD
%/NN
,/,
Lloyds/NNP
owns/VBZ
20/CD
%/NN
and/CC
Royal/NNP
Bank/NNP
of/IN
Scotland/NNP
owns/VBZ
8/CD
%/NN
of/IN
Yorkshire/NNP
Bank/NNP
./.
The/DT
Federal/NNP
Reserve/NNP
gave/VBD
comfort/NN
to/TO
the/DT
financial/JJ
markets/NNS
yesterday/NN
by/IN
allowing/VBG
a/DT
key/JJ
interest/NN
rate/NN
to/TO
drift/VB
downward/RB
./.
In/IN
addition/NN
,/,
Fed/NNP
Chairman/NNP
Alan/NNP
Greenspan/NNP
attempted/VBD
to/TO
calm/VB
the/DT
markets/NNS
by/IN
denying/VBG
reports/NNS
he/PRP
was/VBD
publicly/RB
feuding/VBG
with/IN
the/DT
Treasury/NNP
./.
The/DT
Fed/NNP
allowed/VBD
the/DT
key/JJ
federal/JJ
funds/NNS
interest/NN
rate/NN
to/TO
dip/VB
to/TO
about/RB
8/CD
5\/8/CD
%/NN
from/IN
its/PRP$
levels/NNS
of/IN
just/RB
below/IN
9/CD
%/NN
last/JJ
week/NN
./.
That/DT
was/VBD
a/DT
sign/NN
to/TO
financial/JJ
markets/NNS
that/IN
,/,
at/IN
least/JJS
for/IN
now/RB
,/,
the/DT
Fed/NNP
was/VBD
easing/VBG
its/PRP$
grip/NN
on/IN
credit/NN
./.
Because/IN
the/DT
markets/NNS
remained/VBD
relatively/RB
calm/JJ
,/,
however/RB
,/,
the/DT
Fed/NNP
did/VBD
n't/RB
have/VB
to/TO
inject/VB
massive/JJ
amounts/NNS
of/IN
money/NN
into/IN
the/DT
banking/NN
system/NN
,/,
as/IN
it/PRP
did/VBD
in/IN
October/NNP
1987/CD
./.
The/DT
fed/VBN
funds/NNS
rate/NN
is/VBZ
the/DT
rate/NN
banks/NNS
charge/VBP
on/IN
loans/NNS
to/TO
each/DT
other/JJ
./.
The/DT
Federal/NNP
Reserve/NNP
can/MD
heavily/RB
influence/VBP
that/DT
rate/NN
by/IN
buying/VBG
and/CC
selling/VBG
securities/NNS
to/TO
financial/JJ
institutions/NNS
./.
``/``
I/PRP
view/VBP
this/DT
morning/NN
's/POS
action/NN
as/IN
hand/NN
holding/VBG
for/IN
the/DT
financial/JJ
markets/NNS
,/,
''/''
said/VBD
Steven/NNP
Wood/NNP
,/,
an/DT
economist/NN
with/IN
Bank/NNP
of/IN
America/NNP
./.
He/PRP
said/VBD
the/DT
Fed/NNP
showed/VBD
it/PRP
was/VBD
willing/JJ
to/TO
provide/VB
more/JJR
money/NN
to/TO
the/DT
financial/JJ
system/NN
,/,
but/CC
it/PRP
was/VBD
n't/RB
clear/JJ
``/``
how/WRB
much/JJ
or/CC
for/IN
how/WRB
long/JJ
./.
''/''
Mr./NNP
Greenspan/NNP
appeared/VBD
in/IN
public/JJ
briefly/RB
yesterday/NN
morning/NN
to/TO
deliver/VB
a/DT
speech/NN
to/TO
the/DT
American/NNP
Bankers/NNP
Association/NNP
convention/NN
here/RB
./.
In/IN
a/DT
brief/JJ
comment/NN
before/IN
the/DT
speech/NN
,/,
he/PRP
said/VBD
he/PRP
was/VBD
``/``
surprised/VBN
''/''
that/IN
some/DT
people/NNS
interpreted/VBD
his/PRP$
recent/JJ
comments/NNS
in/IN
Moscow/NNP
``/``
as/IN
endeavoring/VBG
to/TO
say/VB
something/NN
about/IN
current/JJ
monetary/JJ
or/CC
foreign/JJ
exchange/NN
policies/NNS
./.
''/''
While/IN
visiting/VBG
Moscow/NNP
last/JJ
week/NN
,/,
the/DT
Fed/NNP
chairman/NN
had/VBD
warned/VBN
that/IN
``/``
attempts/NNS
to/TO
maintain/VB
unrealistic/JJ
exchange/NN
rates/NNS
''/''
may/MD
be/VB
destabilizing/VBG
--/:
a/DT
comment/NN
some/RB
interpreted/VBD
as/IN
criticism/NN
of/IN
the/DT
Treasury/NNP
's/POS
efforts/NNS
to/TO
push/VB
down/RB
the/DT
dollar/NN
./.
``/``
I/PRP
hope/VBP
my/PRP$
colleagues/NNS
at/IN
the/DT
Gosbank/NNP
the/DT
Soviet/JJ
central/NN
bank/NN
anything/NN
I/PRP
said/VBD
today/NN
,/,
''/''
the/DT
Fed/NNP
chairman/NN
joked/VBD
before/IN
beginning/VBG
the/DT
prepared/VBN
text/NN
of/IN
his/PRP$
speech/NN
./.
Mr./NNP
Greenspan/NNP
also/RB
tried/VBD
to/TO
reassure/VB
the/DT
markets/NNS
by/IN
saying/VBG
that/IN
``/``
we/PRP
at/IN
the/DT
Federal/NNP
Reserve/NNP
are/VBP
watching/VBG
the/DT
financial/JJ
markets/NNS
rather/RB
closely/RB
./.
''/''
He/PRP
said/VBD
the/DT
Fed/NNP
was/VBD
coordinating/VBG
its/PRP$
activities/NNS
with/IN
foreign/JJ
officials/NNS
,/,
and/CC
that/IN
``/``
coordination/NN
exists/VBZ
at/IN
a/DT
detailed/VBN
level/NN
here/RB
in/IN
the/DT
U.S./NNP
among/IN
the/DT
Federal/NNP
Reserve/NNP
,/,
the/DT
SEC/NNP
,/,
the/DT
CFTC/NNP
and/CC
the/DT
Treasury/NNP
./.
''/''
The/DT
Fed/NNP
's/POS
move/NN
to/TO
ease/VB
credit/NN
was/VBD
n't/RB
an/DT
aggressive/JJ
one/CD
,/,
but/CC
it/PRP
did/VBD
signal/VB
a/DT
clear/JJ
change/NN
of/IN
policy/NN
from/IN
before/IN
the/DT
stock/NN
market/NN
's/POS
swoon/NN
./.
Government/NNP
officials/NNS
say/VBP
it/PRP
's/VBZ
unclear/JJ
,/,
however/RB
,/,
where/WRB
the/DT
bellwether/NN
fed/JJ
funds/NNS
rate/NN
,/,
which/WDT
influences/VBZ
other/JJ
interest/NN
rates/NNS
,/,
will/MD
come/VB
to/TO
rest/VB
./.
If/IN
the/DT
financial/JJ
markets/NNS
continue/VBP
to/TO
show/VB
nervousness/NN
,/,
the/DT
Fed/NNP
may/MD
keep/VB
it/PRP
close/RB
to/TO
8/CD
5\/8/CD
%/NN
./.
If/IN
problems/NNS
quickly/RB
disappear/VBP
,/,
the/DT
Fed/NNP
may/MD
nudge/VB
the/DT
rate/NN
up/RB
to/TO
8/CD
3\/4/CD
./.
Bush/NNP
administration/NN
officials/NNS
were/VBD
pleased/VBN
with/IN
the/DT
Fed/NNP
's/POS
action/NN
,/,
and/CC
shared/VBD
Mr./NNP
Greenspan/NNP
's/POS
view/NN
that/IN
there/EX
was/VBD
close/JJ
coordination/NN
among/IN
the/DT
various/JJ
government/NN
agencies/NNS
./.
On/IN
Sunday/NNP
,/,
for/IN
instance/NN
,/,
Treasury/NNP
Secretary/NNP
Nicholas/NNP
Brady/NNP
held/VBD
a/DT
lengthy/JJ
meeting/NN
with/IN
Mr./NNP
Greenspan/NNP
and/CC
SEC/NNP
Chairman/NNP
Richard/NNP
Breeden/NNP
to/TO
evaluate/VB
information/NN
on/IN
Friday/NNP
's/POS
market/NN
plunge/NN
./.
At/IN
that/DT
time/NN
,/,
they/PRP
concluded/VBD
that/IN
the/DT
drop/NN
was/VBD
concentrated/VBN
among/IN
takeover/NN
stocks/NNS
,/,
and/CC
that/IN
there/EX
were/VBD
no/DT
fundamental/JJ
reasons/NNS
it/PRP
should/MD
turn/VB
into/IN
a/DT
rout/NN
Monday/NNP
morning/NN
./.
The/DT
administration/NN
also/RB
benefited/VBD
from/IN
the/DT
expertise/NN
of/IN
Treasury/NNP
Undersecretary/NNP
Robert/NNP
Glauber/NNP
and/CC
Assistant/NNP
Secretary/NNP
David/NNP
Mullins/NNP
,/,
two/CD
former/JJ
Harvard/NNP
professors/NNS
who/WP
had/VBD
headed/VBN
up/RP
the/DT
Brady/NNP
Commission/NNP
's/POS
effort/NN
to/TO
investigate/VB
the/DT
1987/CD
crash/NN
./.
The/DT
two/CD
men/NNS
studied/VBD
the/DT
order/NN
imbalances/NNS
in/IN
the/DT
stock/NN
markets/NNS
and/CC
the/DT
level/NN
of/IN
stock/NN
index/NN
futures/NNS
to/TO
determine/VB
what/WP
might/MD
happen/VB
Monday/NNP
morning/NN
./.
That/WDT
led/VBD
administration/NN
officials/NNS
to/TO
predict/VB
,/,
accurately/RB
,/,
that/IN
on/IN
Monday/NNP
the/DT
market/NN
would/MD
have/VB
to/TO
drop/VB
60/CD
to/TO
100/CD
points/NNS
before/IN
any/DT
recovery/NN
could/MD
begin/VB
./.
Some/DT
analysts/NNS
have/VBP
said/VBD
disagreements/NNS
between/IN
the/DT
Treasury/NNP
and/CC
the/DT
Fed/NNP
added/VBD
to/TO
an/DT
environment/NN
that/WDT
allowed/VBD
Friday/NNP
's/POS
steep/JJ
market/NN
decline/NN
to/TO
occur/VB
./.
For/IN
weeks/NNS
prior/RB
to/TO
the/DT
market/NN
's/POS
drop/NN
,/,
the/DT
Treasury/NNP
had/VBD
been/VBN
urging/VBG
the/DT
Fed/NNP
to/TO
bring/VB
down/RB
short-term/JJ
interest/NN
rates/NNS
,/,
and/CC
the/DT
Fed/NNP
had/VBD
been/VBN
resisting/VBG
./.
Also/RB
,/,
Fed/NNP
Vice/NNP
Chairman/NNP
Manuel/NNP
Johnson/NNP
and/CC
Wayne/NNP
Angell/NNP
,/,
another/DT
member/NN
of/IN
the/DT
reserve/NN
board/NN
,/,
had/VBD
objected/VBN
,/,
in/IN
a/DT
vote/NN
made/VBD
public/JJ
Oct./NNP
6/CD
,/,
to/TO
the/DT
Treasury/NNP
's/POS
efforts/NNS
to/TO
push/VB
down/RB
the/DT
dollar/NN
by/IN
selling/VBG
currency/NN
in/IN
foreign/JJ
exchange/NN
markets/NNS
./.
Mr./NNP
Greenspan/NNP
was/VBD
also/RB
known/VBN
to/TO
be/VB
privately/RB
unenthusiastic/JJ
about/IN
the/DT
Treasury/NNP
's/POS
orders/NNS
for/IN
massive/JJ
dollar/NN
sales/NNS
./.
His/PRP$
comments/NNS
in/IN
Moscow/NNP
last/JJ
week/NN
were/VBD
interpreted/VBN
by/IN
some/DT
as/IN
a/DT
subtle/JJ
attempt/NN
to/TO
make/VB
those/DT
concerns/NNS
public/JJ
./.
Separately/NNP
,/,
David/NNP
Ruder/NNP
,/,
who/WP
left/VBD
the/DT
chairmanship/NN
of/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
two/CD
weeks/NNS
ago/RB
,/,
says/VBZ
investors/NNS
should/MD
view/VB
market/NN
volatility/NN
as/IN
a/DT
fact/NN
of/IN
modern/JJ
market/NN
life/NN
./.
``/``
I/PRP
do/VBP
not/RB
regard/VB
the/DT
amount/NN
of/IN
the/DT
decline/NN
on/IN
Friday/NNP
as/IN
unexpected/JJ
or/CC
unlikely/JJ
,/,
''/''
he/PRP
said/VBD
in/IN
a/DT
telephone/NN
interview/NN
./.
``/``
With/IN
the/DT
market/NN
being/VBG
up/IN
to/TO
2,700/CD
or/CC
2,800/CD
and/CC
the/DT
existence/NN
of/IN
derivative/JJ
products/NNS
.../:
one/PRP
can/MD
expect/VB
volatility/NN
of/IN
the/DT
magnitude/NN
we/PRP
had/VBD
./.
''/''
But/CC
he/PRP
asked/VBD
that/IN
institutional/JJ
investors/NNS
take/VBP
a/DT
socially/RB
responsible/JJ
role/NN
in/IN
supporting/VBG
the/DT
market/NN
./.
``/``
Institutional/JJ
investors/NNS
bear/VBP
a/DT
responsibility/NN
to/TO
not/RB
only/RB
not/RB
sell/VB
but/CC
to/TO
step/VB
up/RP
and/CC
buy/VB
without/IN
waiting/VBG
for/IN
the/DT
market/NN
to/TO
bottom/VB
,/,
''/''
Mr./NNP
Ruder/NNP
said/VBD
./.
Mr./NNP
Ruder/NNP
,/,
now/RB
a/DT
professor/NN
at/IN
the/DT
Northwestern/NNP
University/NNP
School/NNP
of/IN
Law/NNP
in/IN
Chicago/NNP
,/,
also/RB
expressed/VBN
concern/NN
about/IN
two/CD
pauses/NNS
in/IN
the/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
futures/NNS
pits/NNS
after/IN
prices/NNS
had/VBD
fallen/VBN
and/CC
circuit/NN
breakers/NNS
kicked/VBN
in/RP
./.
Noting/VBG
that/IN
the/DT
Dow/NNP
Jones/NNP
industrials/NNS
continued/VBD
to/TO
fall/VB
as/IN
the/DT
futures/NNS
were/VBD
spared/VBN
further/JJ
carnage/NN
,/,
Mr./NNP
Ruder/NNP
said/VBD
,/,
``/``
I/PRP
think/VBP
that/DT
's/VBZ
something/NN
that/WDT
needs/VBZ
to/TO
be/VB
looked/VBN
at/IN
very/RB
carefully/RB
./.
''/''
Kevin/NNP
G./NNP
Salwen/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Congressman/NNP
Lee/NNP
Hamilton/NNP
,/,
an/DT
Indiana/NNP
Democrat/NNP
who/WP
chairs/VBZ
the/DT
the/DT
Joint/NNP
Economic/NNP
Committee/NNP
,/,
plans/VBZ
hearings/NNS
next/IN
week/NN
on/IN
his/PRP$
bill/NN
to/TO
subject/VB
the/DT
Fed/NNP
to/TO
greater/JJR
political/JJ
control/NN
./.
The/DT
Fed/NNP
already/RB
is/VBZ
experiencing/VBG
political/JJ
pressure/NN
to/TO
supply/VB
lower/JJR
interest/NN
rates/NNS
and/CC
easy/JJ
money/NN
./.
Former/NNP
Senator/NNP
William/NNP
Proxmire/NNP
has/VBZ
called/VBN
the/DT
Hamilton/NNP
bill/NN
the/DT
most/RBS
dangerous/JJ
economic/JJ
legislation/NN
now/RB
before/IN
Congress/NNP
,/,
because/IN
it/PRP
would/MD
give/VB
U.S./NNP
economic/JJ
policy/NN
a/DT
further/JJ
inflationary/JJ
bias/NN
./.
It/PRP
is/VBZ
n't/RB
given/VBN
much/JJ
chance/NN
of/IN
passing/VBG
,/,
but/CC
its/PRP$
mere/JJ
existence/NN
is/VBZ
cause/NN
for/IN
anxiety/NN
./.
The/DT
U.S./NNP
and/CC
the/DT
world/NN
are/VBP
not/RB
in/IN
need/NN
of/IN
new/JJ
doubts/NNS
about/IN
the/DT
future/JJ
soundness/NN
of/IN
the/DT
dollar/NN
./.
Attempts/NNS
in/IN
late/JJ
September/NNP
to/TO
drive/VB
the/DT
dollar/NN
down/RB
through/IN
central/JJ
bank/NN
interventions/NNS
were/VBD
ill-timed/JJ
,/,
particularly/RB
since/IN
we/PRP
now/RB
know/VBP
that/IN
the/DT
dollar/NN
was/VBD
then/RB
in/IN
the/DT
process/NN
of/IN
taking/VBG
another/DT
dive/NN
relative/JJ
to/TO
oil/NN
and/CC
other/JJ
producer/NN
goods/NNS
./.
The/DT
sharp/JJ
rise/NN
in/IN
the/DT
September/NNP
Producer-Price/NNP
Index/NNP
announced/VBN
Friday/NNP
fueled/VBD
the/DT
stock/NN
market/NN
debacle/NN
./.
The/DT
Hamilton/NNP
bill/NN
would/MD
put/VB
the/DT
Treasury/NNP
Secretary/NNP
on/IN
the/DT
Fed/NNP
's/POS
board/NN
and/CC
Open/NNP
Market/NNP
Committee/NNP
,/,
which/WDT
charts/VBZ
monetary/JJ
policy/NN
./.
More/RBR
worrisome/JJ
,/,
Congress/NNP
would/MD
have/VB
a/DT
stronger/JJR
supervisory/JJ
role/NN
,/,
with/IN
the/DT
Fed/NNP
audited/VBD
by/IN
the/DT
General/NNP
Accounting/NNP
Office/NNP
,/,
which/WDT
Congress/NNP
runs/VBZ
./.
Those/DT
sound/VBP
like/IN
innocuous/JJ
changes/NNS
,/,
but/CC
they/PRP
're/VBP
not/RB
./.
Both/DT
the/DT
Treasury/NNP
and/CC
Congress/NNP
traditionally/RB
have/VB
pushed/VBN
for/IN
easy/JJ
money/NN
,/,
the/DT
Treasury/NNP
to/TO
reduce/VB
its/PRP$
debt/NN
management/NN
problems/NNS
and/CC
Congress/NNP
to/TO
satisfy/VB
powerful/JJ
producer/NN
constituencies/NNS
who/WP
want/VBP
a/DT
weak/JJ
dollar/NN
for/IN
short-term/JJ
competitive/JJ
gains/NNS
in/IN
world/NN
markets/NNS
./.
Congressional/JJ
pressures/NNS
on/IN
the/DT
Fed/NNP
similar/JJ
to/TO
those/DT
that/WDT
produced/VBD
the/DT
savings/NNS
and/CC
loan/NN
mess/NN
are/VBP
an/DT
awful/JJ
thought/NN
./.
Even/RB
now/RB
,/,
the/DT
Fed/NNP
can/MD
not/RB
simply/RB
thumb/VB
its/PRP$
nose/NN
at/IN
the/DT
President/NNP
and/CC
Congress/NNP
./.
But/CC
it/PRP
can/MD
resist/VB
./.
Paul/NNP
Volcker/NNP
found/VBD
subtle/JJ
ways/NNS
to/TO
take/VB
his/PRP$
case/NN
to/TO
the/DT
people/NNS
,/,
with/IN
good/JJ
results/NNS
./.
Easy/JJ
money/NN
advocates/NNS
,/,
however/RB
,/,
are/VBP
adept/JJ
at/IN
spreading/VBG
economic/JJ
myths/NNS
./.
There/EX
is/VBZ
the/DT
constant/JJ
insistence/NN
that/IN
the/DT
Fed/NNP
could/MD
lower/VB
interest/NN
rates/NNS
were/VBD
it/PRP
not/RB
so/RB
obstinate/JJ
./.
The/DT
Fed/NNP
indeed/RB
can/MD
lower/VB
short-term/JJ
interest/NN
rates/NNS
by/IN
pumping/VBG
reserves/NNS
into/IN
the/DT
banks/NNS
,/,
but/CC
it/PRP
ca/MD
n't/RB
do/VB
much/JJ
about/IN
them/PRP
from/IN
there/RB
on/RB
./.
If/IN
the/DT
reserves/NNS
generate/VBP
inflation/NN
,/,
which/WDT
is/VBZ
what/WP
the/DT
Fed/NNP
fears/VBZ
most/RBS
right/RB
now/RB
,/,
interest/NN
rates/NNS
will/MD
go/VB
up/RB
as/IN
lenders/NNS
demand/VBP
a/DT
premium/NN
./.
Enough/JJ
inflation/NN
can/MD
ultimately/RB
even/RB
wipe/VB
out/RP
the/DT
bond/NN
market/NN
,/,
as/IN
it/PRP
did/VBD
in/IN
Britain/NNP
in/IN
the/DT
1970s/CD
,/,
thereby/RB
crippling/VBG
the/DT
economy/NN
./.
The/DT
other/JJ
myth/NN
is/VBZ
that/IN
inflation/NN
generates/VBZ
economic/JJ
growth/NN
./.
It/PRP
may/MD
do/VB
that/DT
temporarily/RB
but/CC
it/PRP
also/RB
sows/VBZ
the/DT
seeds/NNS
for/IN
stagnation/NN
./.
These/DT
two/CD
myths/NNS
have/VBP
caused/VBN
the/DT
republic/NN
untold/JJ
damage/NN
./.
The/DT
U.S./NNP
economy/NN
took/VBD
on/IN
an/DT
inflationary/JJ
bias/NN
when/WRB
the/DT
Fed/NNP
was/VBD
forced/VBN
to/TO
finance/VB
an/DT
incredible/JJ
spending/NN
spree/NN
by/IN
Lyndon/NNP
Johnson/NNP
./.
Richard/NNP
Nixon/NNP
exacerbated/VBD
the/DT
problem/NN
when/WRB
,/,
in/IN
response/NN
to/TO
pressures/NNS
from/IN
Congress/NNP
,/,
he/PRP
applied/VBD
price/NN
and/CC
wage/NN
controls/NNS
in/IN
August/NNP
1971/CD
,/,
thereby/RB
discouraging/VBG
production/NN
./.
Jimmy/NNP
Carter/NNP
ultimately/RB
hired/VBD
Mr./NNP
Volcker/NNP
to/TO
kill/VB
inflation/NN
,/,
which/WDT
was/VBD
reaching/VBG
dangerous/JJ
levels/NNS
./.
He/PRP
did/VBD
,/,
too/RB
late/JJ
to/TO
save/VB
Mr./NNP
Carter/NNP
from/IN
forced/VBN
retirement/NN
./.
But/CC
all/DT
that/DT
was/VBD
a/DT
long/JJ
time/NN
ago/RB
and/CC
politicians/NNS
have/VBP
a/DT
way/NN
of/IN
forgetting/VBG
such/JJ
things/NNS
./.
The/DT
1970s/NNS
inflation/NN
yielded/VBD
great/JJ
benefits/NNS
to/TO
some/DT
producer/NN
interests/NNS
,/,
including/VBG
Arab/JJ
sheiks/NNS
,/,
at/IN
the/DT
expense/NN
of/IN
the/DT
American/JJ
middle/NN
class/NN
./.
It/PRP
was/VBD
a/DT
classic/JJ
example/NN
of/IN
how/WRB
inflation/NN
transfers/VBZ
income/NN
to/TO
the/DT
wealthy/JJ
from/IN
the/DT
middle/JJ
class/NN
./.
That/DT
explains/VBZ
why/WRB
there/EX
are/VBP
always/RB
powerful/JJ
political/JJ
interests/NNS
pushing/VBG
for/IN
a/DT
soft/JJ
currency/NN
./.
In/IN
some/DT
countries/NNS
,/,
Argentina/NNP
for/IN
example/NN
,/,
those/DT
interests/NNS
have/VBP
overwhelmed/VBN
the/DT
government/NN
and/CC
what/WP
remains/VBZ
of/IN
a/DT
middle/JJ
class/NN
./.
The/DT
claim/NN
that/IN
inflation/NN
generates/VBZ
economic/JJ
growth/NN
is/VBZ
seductive/JJ
./.
In/IN
fact/NN
it/PRP
does/VBZ
the/DT
opposite/NN
./.
As/IN
the/DT
charts/NNS
show/VBP
,/,
the/DT
1975-80/CD
inflation/NN
destroyed/VBD
both/DT
productivity/NN
and/CC
economic/JJ
growth/NN
charts/NNS
--/:
WSJ/NNP
Oct./NNP
17/CD
,/,
1989/CD
It/PRP
was/VBD
only/RB
after/IN
Mr./NNP
Volcker/NNP
killed/VBD
inflation/NN
,/,
at/IN
the/DT
cost/NN
of/IN
a/DT
sharp/JJ
but/CC
brief/JJ
recession/NN
,/,
that/IN
growth/NN
and/CC
productivity/NN
started/VBD
rising/VBG
once/RB
more/RBR
./.
Producers/NNS
were/VBD
forced/VBN
by/IN
the/DT
discipline/NN
of/IN
sound/JJ
money/NN
to/TO
slash/VB
away/RB
organizational/JJ
fat/NN
and/CC
acquire/VB
more/RBR
efficient/JJ
equipment/NN
./.
After/IN
having/VBG
performed/VBD
that/DT
admirable/JJ
feat/NN
,/,
however/RB
,/,
they/PRP
were/VBD
back/RB
in/IN
1985/CD
demanding/VBG
a/DT
dollar/NN
devaluation/NN
that/WDT
would/MD
make/VB
it/PRP
still/RB
easier/RBR
for/IN
them/PRP
to/TO
compete/VB
in/IN
international/JJ
markets/NNS
./.
They/PRP
got/VBD
the/DT
devaluation/NN
and/CC
,/,
as/IN
is/VBZ
usually/RB
the/DT
case/NN
,/,
began/VBD
picking/VBG
up/RP
fat/NN
again/RB
./.
So/RB
now/RB
they/PRP
want/VBP
another/DT
one/CD
./.
Many/JJ
corporate/JJ
executives/NNS
do/VBP
n't/RB
understand/VB
or/CC
do/VBP
n't/RB
want/VB
to/TO
understand/VB
that/IN
their/PRP$
own/JJ
companies/NNS
eventually/RB
become/VBP
victims/NNS
of/IN
such/JJ
policies/NNS
./.
Inflation/NN
destroys/VBZ
capital/NN
investment/NN
./.
Corporate/JJ
depreciation/NN
reserves/NNS
lose/VBP
value/NN
relative/JJ
to/TO
equipment/NN
replacement/NN
costs/NNS
./.
Investors/NNS
are/VBP
reluctant/JJ
to/TO
invest/VB
long/JJ
term/NN
./.
Corporations/NNS
,/,
in/IN
effect/NN
,/,
decapitalize/VBP
themselves/PRP
./.
That/DT
was/VBD
reflected/VBN
in/IN
the/DT
stagnant/JJ
stock/NN
market/NN
of/IN
the/DT
1970s/NNS
./.
Strikes/NNS
increase/VBP
as/IN
workers/NNS
demand/VBP
raises/NNS
to/TO
cope/VB
with/IN
rising/VBG
prices/NNS
,/,
make/VB
up/RP
for/IN
what/WP
they/PRP
already/RB
have/VBP
lost/VBN
and/CC
hedge/VB
against/IN
what/WP
they/PRP
will/MD
lose/VB
in/IN
the/DT
months/NNS
ahead/RB
./.
Productivity/NN
falls/VBZ
,/,
and/CC
weaker/JJR
production/NN
further/RBR
fans/VBZ
inflation/NN
./.
The/DT
middle/JJ
class/NN
gets/VBZ
poorer/RBR
,/,
and/CC
the/DT
poor/JJ
feel/NN
greater/JJR
pain/NN
than/IN
ever/RB
./.
All/DT
of/IN
which/WDT
explains/VBZ
why/WRB
stock/NN
and/CC
foreign/JJ
exchange/NN
markets/NNS
get/VBP
jittery/JJ
when/WRB
the/DT
Fed/NNP
comes/VBZ
under/IN
political/JJ
pressure/NN
./.
Particularly/RB
so/RB
when/WRB
it/PRP
comes/VBZ
at/IN
a/DT
time/NN
when/WRB
the/DT
Fed/NNP
has/VBZ
done/VBN
well/RB
./.
When/WRB
it/PRP
tightened/VBD
up/RP
last/JJ
spring/NN
,/,
the/DT
price/NN
indexes/NNS
fell/VBD
and/CC
the/DT
economy/NN
began/VBD
to/TO
pick/VB
up/RP
speed/NN
again/RB
,/,
which/WDT
is/VBZ
of/IN
course/NN
exactly/RB
counter/RB
to/TO
the/DT
``/``
inflation-fuels-growth/JJ
''/''
theory/NN
./.
But/CC
not/RB
all/DT
the/DT
news/NN
is/VBZ
bad/JJ
./.
Rep./NNP
Stephen/NNP
Neal/NNP
D./NNP
,/,
N.C/NNP
./.
Congress/NNP
to/TO
instruct/VB
the/DT
Fed/NNP
to/TO
do/VB
one/CD
thing/NN
:/:
prevent/VB
inflation/NN
./.
Nothing/NN
could/MD
be/VB
more/JJR
to/TO
the/DT
point/NN
./.
LAC/NNP
Minerals/NNP
Ltd./NNP
said/VBD
it/PRP
agreed/VBD
to/TO
buy/VB
65/CD
%/NN
of/IN
Denver-based/JJ
Bond/NNP
International/NNP
Gold/NNP
Inc./NNP
for/IN
$/$
10/CD
a/DT
share/NN
,/,
or/CC
$/$
373.8/CD
million/CD
./.
The/DT
stake/NN
in/IN
the/DT
gold-mining/JJ
company/NN
is/VBZ
held/VBN
by/IN
companies/NNS
controlled/VBN
by/IN
Australian/JJ
financier/NN
Alan/NNP
Bond/NNP
,/,
who/WP
has/VBZ
been/VBN
selling/VBG
assets/NNS
to/TO
reduce/VB
debt/NN
./.
LAC/NNP
,/,
a/DT
gold-mining/JJ
company/NN
,/,
said/VBD
the/DT
transaction/NN
is/VBZ
to/TO
close/VB
Nov./NNP
21/CD
,/,
subject/JJ
to/TO
regulatory/JJ
approval/NN
and/CC
other/JJ
customary/JJ
conditions/NNS
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Bond/NNP
International/NNP
closed/VBD
unchanged/JJ
at/IN
$/$
8.75/CD
./.
The/DT
purchase/NN
helps/VBZ
LAC/NNP
make/VB
up/RP
for/IN
a/DT
court/NN
decision/NN
earlier/RBR
this/DT
year/NN
in/IN
which/WDT
it/PRP
lost/VBD
a/DT
long/JJ
legal/JJ
battle/NN
with/IN
Toronto-based/JJ
Corona/NNP
Corp./NNP
for/IN
control/NN
of/IN
Canada/NNP
's/POS
richest/JJS
gold/NN
mine/NN
./.
The/DT
Bond/NNP
International/NNP
stake/NN
would/MD
roughly/RB
double/VB
LAC/NNP
's/POS
gold/NN
production/NN
and/CC
substantially/RB
reduce/VB
its/PRP$
average/JJ
cost/NN
of/IN
producing/VBG
gold/NN
./.
Bond/NNP
International/NNP
is/VBZ
expected/VBN
to/TO
produce/VB
about/RB
600,000/CD
ounces/NNS
of/IN
gold/NN
in/IN
the/DT
fiscal/JJ
year/NN
ending/VBG
June/NNP
30/CD
,/,
of/IN
which/WDT
roughly/RB
two-thirds/NNS
would/MD
be/VB
attributable/JJ
to/TO
LAC/NNP
from/IN
the/DT
date/NN
the/DT
acquisition/NN
is/VBZ
completed/VBN
./.
LAC/NNP
itself/PRP
is/VBZ
expected/VBN
to/TO
produce/VB
about/RB
400,000/CD
ounces/NNS
this/DT
year/NN
./.
Last/JJ
year/NN
,/,
Bond/NNP
International/NNP
spent/VBD
an/DT
average/NN
$/$
204/CD
to/TO
produce/VB
an/DT
ounce/NN
of/IN
gold/NN
at/IN
mines/NNS
in/IN
North/NNP
and/CC
South/NNP
America/NNP
and/CC
in/IN
Australia/NNP
,/,
significantly/RB
lower/JJR
than/IN
LAC/NNP
's/POS
own/JJ
average/JJ
cost/NN
of/IN
$/$
260/CD
an/DT
ounce/NN
./.
Analysts/NNS
say/VBP
the/DT
real/JJ
jewel/NN
in/IN
the/DT
Bond/NNP
International/NNP
crown/NN
is/VBZ
its/PRP$
83/CD
%/NN
stake/NN
in/IN
Chile/NNP
's/POS
El/NNP
Indio/NNP
mine/NN
,/,
which/WDT
they/PRP
say/VBP
had/VBD
production/NN
costs/NNS
of/IN
below/IN
$/$
100/CD
an/DT
ounce/NN
./.
A/DT
LAC/NNP
spokesman/NN
said/VBD
the/DT
company/NN
has/VBZ
``/``
enough/JJ
cash/NN
''/''
to/TO
pay/VB
for/IN
the/DT
Bond/NNP
International/NNP
stake/NN
without/IN
borrowing/VBG
./.
The/DT
spokesman/NN
said/VBD
LAC/NNP
has/VBZ
no/DT
intentions/NNS
``/``
right/RB
now/RB
''/''
to/TO
further/RBR
increase/VB
its/PRP$
stake/NN
in/IN
Bond/NNP
International/NNP
./.
Dallas/NNP
investor/NN
Harold/NNP
Simmons/NNP
says/VBZ
he/PRP
has/VBZ
n't/RB
decided/VBD
to/TO
sell/VB
his/PRP$
Lockheed/NNP
Corp./NNP
shares/NNS
,/,
after/IN
all/DT
./.
In/IN
a/DT
terse/JJ
news/NN
release/NN
responding/VBG
to/TO
an/DT
article/NN
yesterday/NN
in/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
,/,
which/WDT
credited/VBD
a/DT
front-page/JJ
interview/NN
story/NN
in/IN
the/DT
Sunday/NNP
Los/NNP
Angeles/NNP
Daily/NNP
News/NNP
,/,
Valhi/NNP
Inc./NNP
said/VBD
the/DT
quotes/NNS
in/IN
the/DT
articles/NNS
``/``
do/VBP
not/RB
accurately/RB
reflect/VB
Valhi/NNP
's/POS
and/CC
Mr./NNP
Simmons/NNP
's/POS
intentions/NNS
''/''
concerning/VBG
their/PRP$
interests/NNS
in/IN
Lockheed/NNP
./.
Through/IN
Valhi/NNP
and/CC
its/PRP$
affiliates/NNS
,/,
Mr./NNP
Simmons/NNP
holds/VBZ
a/DT
10.43/CD
%/NN
stake/NN
in/IN
the/DT
aerospace/NN
and/CC
electronics/NNS
concern/NN
,/,
and/CC
his/PRP$
plans/NNS
concerning/VBG
Lockheed/NNP
have/VBP
been/VBN
the/DT
subject/NN
of/IN
much/JJ
speculation/NN
among/IN
securities/NNS
analysts/NNS
./.
In/IN
the/DT
Daily/NNP
News/NNP
story/NN
,/,
Mr./NNP
Simmons/NNP
was/VBD
quoted/VBN
as/IN
saying/VBG
,/,
among/IN
other/JJ
things/NNS
:/:
``/``
Actually/RB
,/,
I/PRP
wish/VBP
I/PRP
were/VBD
out/IN
of/IN
Lockheed/NNP
./.
The/DT
defense/NN
industry/NN
seems/VBZ
to/TO
be/VB
getting/VBG
more/RBR
uncertain/JJ
all/DT
the/DT
time/NN
./.
So/IN
I/PRP
'm/VBP
a/DT
seller/NN
./.
Put/VB
it/PRP
in/IN
big/JJ
black/JJ
letters/NNS
and/CC
underline/VB
it/PRP
./.
''/''
Yesterday/NN
's/POS
statement/NN
by/IN
Valhi/NNP
said/VBD
the/DT
quotes/NNS
``/``
take/VBP
out/IN
of/IN
context/NN
and/CC
paraphrase/VBP
statements/NNS
made/VBN
by/IN
Mr./NNP
Simmons/NNP
in/IN
jest/NN
at/IN
the/DT
conclusion/NN
of/IN
a/DT
lengthy/JJ
interview/NN
./.
''/''
The/DT
true/JJ
position/NN
is/VBZ
that/IN
Valhi/NNP
and/CC
its/PRP$
affiliates/NNS
,/,
as/IN
they/PRP
have/VBP
said/VBD
in/IN
public/JJ
filings/NNS
,/,
``/``
may/MD
increase/VB
,/,
decrease/VB
or/CC
retain/VB
their/PRP$
Lockheed/NNP
holdings/NNS
''/''
depending/VBG
on/IN
a/DT
number/NN
of/IN
conditions/NNS
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Lockheed/NNP
shares/NNS
closed/VBD
yesterday/NN
at/IN
$/$
46.25/CD
a/DT
share/NN
,/,
off/IN
$/$
1.75/CD
./.
Douglas/NNP
R./NNP
Dowie/NNP
,/,
Daily/NNP
News/NNP
managing/VBG
editor/NN
for/IN
news/NN
,/,
said/VBD
``/``
the/DT
quotes/NNS
in/IN
the/DT
Daily/NNP
News/NNP
were/VBD
in/IN
context/NN
and/CC
were/VBD
not/RB
in/IN
jest/NN
./.
''/''
The/DT
report/NN
of/IN
the/DT
interview/NN
,/,
which/WDT
was/VBD
recorded/VBN
,/,
was/VBD
``/``
absolutely/RB
correct/JJ
,/,
''/''
he/PRP
added/VBD
./.
A/DT
spokesman/NN
for/IN
Mr./NNP
Simmons/NNP
declined/VBD
to/TO
elaborate/VB
on/IN
the/DT
Valhi/NNP
statement/NN
,/,
and/CC
said/VBD
Mr./NNP
Simmons/NNP
would/MD
n't/RB
be/VB
available/JJ
to/TO
answer/VB
questions/NNS
about/IN
his/PRP$
remarks/NNS
to/TO
the/DT
Daily/NNP
News/NNP
./.
Tokyo/NNP
share/NN
prices/NNS
dropped/VBD
sharply/RB
in/IN
early/JJ
Monday/NNP
morning/NN
trading/NN
following/VBG
Wall/NNP
Street/NNP
's/POS
plunge/NN
on/IN
Friday/NNP
./.
After/IN
the/DT
initial/JJ
slide/NN
,/,
the/DT
market/NN
appeared/VBD
to/TO
be/VB
turning/VBG
around/RP
but/CC
by/IN
early/JJ
afternoon/NN
was/VBD
headed/VBN
lower/RBR
./.
At/IN
1:30/CD
p.m/NN
./.
Tokyo/NNP
time/NN
,/,
the/DT
Nikkei/NNP
index/NN
of/IN
225/CD
selected/VBN
stocks/NNS
was/VBD
off/JJ
1.4/CD
%/NN
,/,
or/CC
482.39/CD
points/NNS
,/,
to/TO
34633.63/CD
./.
In/IN
the/DT
first/JJ
20/CD
minutes/NNS
of/IN
trading/NN
in/IN
the/DT
morning/NN
,/,
the/DT
Nikkei/NNP
index/NN
had/VBD
fallen/VBN
611.62/CD
points/NNS
or/CC
1.7/CD
%/NN
,/,
as/IN
nervous/JJ
investors/NNS
sold/VBD
large/JJ
capital/NN
issues/NNS
./.
Traders/NNS
remained/VBD
guarded/JJ
./.
Yoshiro/NNP
Inoue/NNP
,/,
an/DT
analyst/NN
at/IN
Nomura/NNP
Securities/NNP
Co./NNP
,/,
described/VBD
the/DT
steep/JJ
decline/NN
in/IN
the/DT
beginning/NN
as/IN
``/``
a/DT
New/NNP
York/NNP
shock/NN
./.
''/''
He/PRP
predicted/VBD
that/IN
``/``
there/EX
would/MD
be/VB
no/DT
steep/JJ
recovery/NN
but/CC
at/IN
the/DT
same/JJ
time/NN
there/EX
would/MD
be/VB
no/DT
further/JJ
decline/NN
./.
''/''
Said/VBD
a/DT
Japanese/JJ
equities/NNS
trader/NN
at/IN
Jardine/NNP
Flemings/NNP
Securities/NNP
Ltd./NNP
,/,
in/IN
Tokyo/NNP
:/:
``/``
There/EX
is/VBZ
still/RB
a/DT
lot/NN
of/IN
weakness/NN
and/CC
nervousness/NN
in/IN
the/DT
market/NN
./.
''/''
Last/JJ
Friday/NNP
,/,
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
plunged/VBD
190.58/CD
points/NNS
to/TO
close/VB
at/IN
2569.26/CD
,/,
its/PRP$
worst/JJS
loss/NN
in/IN
points/NNS
since/IN
the/DT
October/NNP
1987/CD
crash/NN
./.
The/DT
announcement/NN
that/IN
a/DT
group/NN
of/IN
takeover/NN
bidders/NNS
for/IN
UAL/NNP
Corp./NNP
had/VBD
failed/VBN
to/TO
raise/VB
enough/JJ
money/NN
to/TO
acquire/VB
the/DT
U.S./NNP
airline/NN
was/VBD
one/CD
of/IN
the/DT
main/JJ
factors/NNS
that/WDT
triggered/VBD
the/DT
sell-off/NN
,/,
analysts/NNS
said/VBD
./.
World/NN
stock/NN
markets/NNS
,/,
bracing/VBG
over/IN
the/DT
weekend/NN
for/IN
a/DT
sharp/JJ
fall/NN
in/IN
share/NN
prices/NNS
Monday/NNP
,/,
were/VBD
watching/VBG
Tokyo/NNP
closely/RB
for/IN
signals/NNS
./.
How/WRB
far/JJ
share/NN
prices/NNS
fall/VBP
in/IN
other/JJ
markets/NNS
will/MD
depend/VB
to/TO
a/DT
great/JJ
extent/NN
on/IN
how/WRB
the/DT
Tokyo/NNP
market/NN
reacts/VBZ
,/,
analysts/NNS
and/CC
investors/NNS
said/VBD
./.
``/``
I/PRP
'm/VBP
hoping/VBG
Japan/NNP
holds/VBZ
tight/JJ
,/,
''/''
said/VBD
Allen/NNP
Wheat/NNP
,/,
head/NN
of/IN
trading/NN
at/IN
Bankers/NNP
Trust/NNP
Co./NNP
in/IN
London/NNP
,/,
before/IN
the/DT
Tokyo/NNP
opening/NN
./.
``/``
But/CC
if/IN
Japan/NNP
is/VBZ
wobbly/JJ
,/,
London/NNP
will/MD
probably/RB
take/VB
a/DT
beating/NN
./.
''/''
Prior/RB
to/TO
the/DT
Tokyo/NNP
opening/NN
,/,
few/JJ
were/VBD
expecting/VBG
panic/NN
to/TO
set/VB
in/RP
,/,
mainly/RB
because/IN
today/NN
's/POS
market/NN
conditions/NNS
are/VBP
different/JJ
from/IN
those/DT
that/WDT
led/VBD
to/TO
the/DT
world-wide/JJ
downward/JJ
spiral/NN
in/IN
October/NNP
1987/CD
./.
The/DT
French/NNP
market/NN
could/MD
be/VB
harder/RBR
hit/VBN
than/IN
the/DT
London/NNP
market/NN
,/,
European/JJ
analysts/NNS
said/VBD
,/,
because/IN
recent/JJ
unmaterialized/VBN
takeover/NN
speculation/NN
in/IN
Paris/NNP
has/VBZ
left/VBN
some/DT
blue-chip/JJ
stocks/NNS
poised/VBN
for/IN
markdowns/NNS
./.
``/``
Paris/NNP
has/VBZ
had/VBD
an/DT
awful/JJ
lot/NN
of/IN
froth/NN
in/IN
the/DT
past/JJ
two/CD
weeks/NNS
and/CC
so/RB
is/VBZ
probably/RB
going/VBG
to/TO
be/VB
hit/VBN
a/DT
bit/NN
worse/JJR
than/IN
London/NNP
,/,
''/''
said/VBD
David/NNP
Band/NNP
,/,
chief/JJ
executive/NN
officer/NN
of/IN
Barclays/NNP
Bank/NNP
PLC/NNP
's/POS
Barclays/NNP
de/NNP
Zoete/NNP
Wedd/NNP
investment/NN
banking/NN
unit/NN
./.
The/DT
Tokyo/NNP
market/NN
's/POS
opening/NN
behavior/NN
seemed/VBD
to/TO
be/VB
in/IN
line/NN
with/IN
predictions/NNS
that/IN
a/DT
blood/NN
bath/NN
could/MD
be/VB
avoided/VBN
./.
Analysts/NNS
in/IN
Tokyo/NNP
had/VBD
said/VBD
over/IN
the/DT
weekend/NN
that/IN
a/DT
drop/NN
is/VBZ
unavoidable/JJ
,/,
but/CC
they/PRP
predicted/VBD
that/IN
Japan/NNP
's/VBZ
traditionally/RB
cautious/JJ
institutional/JJ
investors/NNS
will/MD
keep/VB
things/NNS
from/IN
spinning/VBG
out/IN
of/IN
control/NN
./.
``/``
The/DT
Tokyo/NNP
market/NN
ca/MD
n't/RB
help/VB
but/CC
go/VB
down/RB
,/,
''/''
said/VBD
Hiroaki/NNP
Hanao/NNP
,/,
deputy/JJ
general/JJ
manager/NN
of/IN
the/DT
equity/NN
department/NN
at/IN
Daiwa/NNP
Securities/NNP
Co/NNP
./.
``/``
But/CC
it/PRP
wo/MD
n't/RB
be/VB
such/JJ
a/DT
big/JJ
crash/NN
./.
''/''
The/DT
Ministry/NNP
of/IN
Finance/NNP
and/CC
the/DT
Bank/NNP
of/IN
Japan/NNP
appear/VBP
to/TO
be/VB
eager/JJ
to/TO
put/VB
out/RP
the/DT
fire/NN
before/IN
it/PRP
spreads/VBZ
./.
Japanese/JJ
newspapers/NNS
reported/VBD
Saturday/NNP
that/IN
the/DT
Ministry/NNP
of/IN
Finance/NNP
and/CC
the/DT
Bank/NNP
of/IN
Japan/NNP
view/NN
the/DT
plunge/NN
on/IN
Wall/NNP
Street/NNP
as/IN
a/DT
result/NN
of/IN
U.S./NNP
domestic/JJ
concerns/NNS
about/IN
financing/VBG
acquisitions/NNS
,/,
not/RB
as/IN
a/DT
sign/NN
of/IN
weak/JJ
economic/JJ
fundamentals/NNS
./.
There/EX
were/VBD
also/RB
rumors/NNS
that/IN
the/DT
Japanese/JJ
financial/JJ
authorities/NNS
warned/VBD
large/JJ
brokerage/NN
firms/NNS
and/CC
institutional/JJ
investors/NNS
over/IN
the/DT
weekend/NN
against/IN
taking/VBG
any/DT
hasty/JJ
actions/NNS
Monday/NNP
./.
How/WRB
effective/JJ
such/JJ
guidance/NN
might/MD
be/VB
remains/VBZ
to/TO
be/VB
seen/VBN
./.
One/CD
analyst/NN
said/VBD
that/IN
with/IN
all/DT
eyes/NNS
on/IN
the/DT
Japanese/JJ
market/NN
it/PRP
will/MD
be/VB
difficult/JJ
this/DT
time/NN
for/IN
the/DT
Finance/NNP
Ministry/NNP
to/TO
try/VB
anything/NN
that/WDT
could/MD
be/VB
seen/VBN
as/RB
artificially/RB
propping/VBG
up/RP
the/DT
market/NN
./.
As/IN
Japanese/JJ
investors/NNS
prepare/VBP
for/IN
some/DT
rough/JJ
waters/NNS
this/DT
week/NN
,/,
they/PRP
will/MD
be/VB
paying/VBG
close/JJ
attention/NN
to/TO
the/DT
foreign/JJ
exchange/NN
markets/NNS
./.
``/``
Tokyo/NNP
is/VBZ
most/RBS
worried/VBN
about/IN
the/DT
currency/NN
,/,
''/''
said/VBD
Daiwa/NNP
Securities/NNP
'/POS
Mr./NNP
Hanao/NNP
./.
If/IN
the/DT
yen/NN
rebounds/NNS
against/IN
the/DT
dollar/NN
,/,
he/PRP
said/VBD
,/,
there/EX
is/VBZ
less/JJR
chance/NN
of/IN
an/DT
additional/JJ
increase/NN
in/IN
interest/NN
rates/NNS
,/,
which/WDT
could/MD
help/VB
stabilize/VB
Tokyo/NNP
share/NN
prices/NNS
./.
Last/JJ
Wednesday/NNP
,/,
the/DT
Bank/NNP
of/IN
Japan/NNP
raised/VBD
the/DT
discount/NN
rate/NN
0.5/CD
percentage/NN
point/NN
to/TO
3.75/CD
%/NN
to/TO
stem/VB
the/DT
dollar/NN
's/POS
rise/NN
./.
Of/IN
ficials/NNS
said/VBD
they/PRP
were/VBD
concerned/VBN
that/IN
a/DT
weaker/JJR
yen/NN
will/MD
contribute/VB
to/TO
greater/JJR
inflation/NN
in/IN
Japan/NNP
./.
In/IN
New/NNP
York/NNP
trading/NN
on/IN
Friday/NNP
the/DT
dollar/NN
dropped/VBD
1.4/CD
%/NN
to/TO
close/VB
at/IN
142.10/CD
yen/NNS
./.
Dealers/NNS
are/VBP
expecting/VBG
the/DT
dollar/NN
to/TO
be/VB
skittish/JJ
,/,
as/IN
the/DT
market/NN
waits/VBZ
for/IN
U.S./NNP
authorities/NNS
to/TO
indicate/VB
their/PRP$
monetary/JJ
policy/NN
plans/NNS
./.
The/DT
dollar/NN
opened/VBD
in/IN
Tokyo/NNP
at/IN
139.95/CD
,/,
down/RB
4.05/CD
from/IN
last/JJ
Friday/NNP
's/POS
Tokyo/NNP
finish/NN
./.
Despite/IN
currency/NN
market/NN
concerns/NNS
,/,
analysts/NNS
stressed/VBD
that/IN
Tokyo/NNP
market/NN
conditions/NNS
today/NN
are/VBP
n't/RB
what/WP
they/PRP
were/VBD
in/IN
1987/CD
./.
Then/RB
,/,
many/JJ
market/NN
watchers/NNS
in/IN
the/DT
U.S./NNP
worried/VBD
that/IN
the/DT
highly/RB
speculative/JJ
Tokyo/NNP
market/NN
would/MD
be/VB
the/DT
one/CD
to/TO
send/VB
world/NN
markets/NNS
reeling/VBG
./.
Now/RB
,/,
many/NNS
look/VBP
to/TO
Tokyo/NNP
as/IN
a/DT
potential/JJ
stabilizing/VBG
factor/NN
because/IN
of/IN
its/PRP$
resilience/NN
and/CC
quick/JJ
recovery/NN
following/VBG
Black/NNP
Monday/NNP
./.
Analysts/NNS
say/VBP
one/CD
point/NN
in/IN
Tokyo/NNP
's/POS
favor/NN
this/DT
time/NN
is/VBZ
the/DT
fact/NN
that/IN
for/IN
the/DT
past/JJ
several/JJ
weeks/NNS
the/DT
market/NN
has/VBZ
been/VBN
in/IN
relatively/RB
low/JJ
gear/NN
,/,
driven/VBN
by/IN
fundamental/JJ
concerns/NNS
about/IN
earnings/NNS
and/CC
interest/NN
rates/NNS
rather/RB
than/IN
wild/JJ
speculation/NN
./.
On/IN
Friday/NNP
,/,
the/DT
Nikkei/NNP
index/NN
rose/VBD
320.97/CD
to/TO
close/VB
at/IN
35116.02/CD
./.
Trading/NN
volume/NN
has/VBZ
also/RB
fallen/VBN
off/RP
in/IN
recent/JJ
weeks/NNS
./.
``/``
A/DT
lot/NN
of/IN
the/DT
speculative/JJ
fat/NN
has/VBZ
been/VBN
trimmed/VBN
,/,
''/''
said/VBD
one/CD
analyst/NN
./.
Some/DT
analysts/NNS
predict/VBP
that/IN
Japanese/JJ
institutions/NNS
may/MD
look/VB
at/IN
this/DT
as/IN
a/DT
good/JJ
time/NN
to/TO
hunt/VB
for/IN
bargains/NNS
./.
Many/JJ
Japanese/JJ
funds/NNS
,/,
which/WDT
closed/VBD
their/PRP$
books/NNS
at/IN
the/DT
end/NN
of/IN
September/NNP
,/,
now/RB
have/VBP
huge/JJ
cash/NN
positions/NNS
./.
``/``
There/EX
's/VBZ
still/RB
lots/NNS
of/IN
idle/JJ
money/NN
sitting/VBG
around/IN
here/RB
,/,
''/''
said/VBD
Hiroshi/NNP
Ohira/NNP
,/,
chief/JJ
analyst/NN
at/IN
New/NNP
Japan/NNP
Securities/NNP
Co./NNP
,/,
citing/VBG
a/DT
frequently/RB
stated/VBN
reason/NN
for/IN
Tokyo/NNP
's/POS
strength/NN
./.
Said/VBD
another/DT
foreign/JJ
stock/NN
analyst/NN
:/:
``/``
All/DT
the/DT
Japanese/JJ
brokers/NNS
will/MD
try/VB
to/TO
look/VB
for/IN
the/DT
positive/JJ
aspects/NNS
of/IN
this/DT
./.
''/''
Whatever/WDT
happens/VBZ
in/IN
Tokyo/NNP
,/,
the/DT
powerful/JJ
ripple/NN
effects/NNS
are/VBP
sure/JJ
to/TO
be/VB
felt/VBN
first/RB
in/IN
other/JJ
Asian/JJ
markets/NNS
./.
A/DT
severe/JJ
drop/NN
in/IN
Japanese/JJ
stock/NN
prices/NNS
or/CC
a/DT
steep/JJ
fall/NN
in/IN
the/DT
dollar/NN
would/MD
exacerbate/VB
price/NN
declines/NNS
in/IN
smaller/JJR
markets/NNS
such/JJ
as/IN
Hong/NNP
Kong/NNP
,/,
money/NN
managers/NNS
say/VBP
./.
In/IN
Hong/NNP
Kong/NNP
,/,
brokers/NNS
and/CC
fund/NN
managers/NNS
expect/VBP
the/DT
widely/RB
watched/VBN
Hang/NNP
Seng/NNP
index/NN
,/,
which/WDT
closed/VBD
Friday/NNP
at/IN
2782.30/CD
,/,
to/TO
shed/VB
at/IN
least/JJS
100/CD
points/NNS
,/,
or/CC
5/CD
%/NN
./.
Some/DT
think/VBP
a/DT
sharper/JJR
decline/NN
is/VBZ
possible/JJ
./.
The/DT
Hang/NNP
Seng/NNP
index/NN
opened/VBD
at/IN
2736/CD
,/,
down/RB
46.3/CD
points/NNS
,/,
or/CC
1.7/CD
%/NN
./.
Investors/NNS
have/VBP
already/RB
been/VBN
treating/VBG
the/DT
market/NN
with/IN
some/DT
caution/NN
./.
In/IN
late/JJ
May/NNP
and/CC
early/JJ
June/NNP
,/,
when/WRB
political/JJ
turmoil/NN
overwhelmed/VBD
China/NNP
,/,
the/DT
Hang/NNP
Seng/NNP
index/NN
plummeted/VBD
37/CD
%/NN
to/TO
2093/CD
./.
Hong/NNP
Kong/NNP
reverts/VBZ
to/TO
China/NNP
in/IN
1997/CD
./.
international/JJ
fund/NN
managers/NNS
decreased/VBD
their/PRP$
exposure/NN
to/TO
the/DT
market/NN
and/CC
only/RB
recently/RB
have/VBP
begun/VBN
to/TO
tiptoe/VB
back/RB
in/IN
./.
``/``
It/PRP
's/VBZ
not/RB
like/IN
the/DT
crash/NN
in/IN
October/NNP
1987/CD
,/,
when/WRB
there/EX
was/VBD
lots/NNS
of/IN
optimism/NN
,/,
''/''
said/VBD
Phillip/NNP
Niem/NNP
,/,
research/NN
director/NN
in/IN
Hong/NNP
Kong/NNP
for/IN
British-based/JJ
Hoare/NNP
Govette/NNP
Asia/NNP
Ltd/NNP
./.
``/``
This/DT
time/NN
around/RP
there/EX
's/POS
lots/NNS
of/IN
caution/NN
./.
People/NNS
are/VBP
already/RB
scared/VBN
./.
Institutions/NNS
'/POS
weighting/NN
in/IN
Hong/NNP
Kong/NNP
are/VBP
low/RB
now/RB
anyway/RB
./.
''/''
After/IN
a/DT
108-point/JJ
decline/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
industrials/VBZ
on/IN
Friday/NNP
,/,
Oct./NNP
16/CD
,/,
1987/CD
,/,
the/DT
Hang/NNP
Seng/NNP
index/NN
plunged/VBD
420.81/CD
points/NNS
,/,
or/CC
11.3/CD
%/NN
,/,
the/DT
following/VBG
Monday/NNP
./.
Later/RBR
that/IN
day/NN
Black/NNP
Monday/NNP
unfolded/VBD
in/IN
New/NNP
York/NNP
,/,
and/CC
officials/NNS
closed/VBD
the/DT
Hong/NNP
Kong/NNP
exchange/NN
for/IN
four/CD
days/NNS
,/,
a/DT
move/NN
that/WDT
shook/VBD
investor/NN
confidence/NN
in/IN
the/DT
market/NN
./.
This/DT
time/NN
around/RB
,/,
government/NN
and/CC
market/NN
officials/NNS
said/VBD
,/,
the/DT
territory/NN
's/POS
revamped/VBN
equity/NN
market/NN
will/MD
remain/VB
open/JJ
regardless/RB
of/IN
what/WP
happens/VBZ
in/IN
New/NNP
York/NNP
today/NN
./.
London/NNP
's/POS
stock/NN
market/NN
,/,
already/RB
wheezing/VBG
under/IN
stresses/NNS
of/IN
its/PRP$
own/JJ
,/,
is/VBZ
also/RB
casting/VBG
a/DT
nervous/JJ
eye/NN
toward/IN
Tokyo/NNP
and/CC
bracing/VBG
for/IN
a/DT
shock/NN
./.
Many/JJ
London/NNP
traders/NNS
planned/VBD
an/DT
allnight/JJ
vigil/NN
on/IN
developments/NNS
in/IN
the/DT
Tokyo/NNP
market/NN
./.
``/``
A/DT
lot/NN
of/IN
our/PRP$
guys/NNS
will/MD
be/VB
sitting/VBG
up/RP
all/DT
night/NN
at/IN
home/NN
,/,
and/CC
a/DT
couple/NN
of/IN
our/PRP$
guys/NNS
will/MD
be/VB
in/IN
the/DT
office/NN
overnight/RB
,/,
''/''
said/VBD
Mr./NNP
Wheat/NNP
of/IN
Bankers/NNP
Trust/NNP
./.
Authorities/NNS
,/,
including/VBG
the/DT
Bank/NNP
of/IN
England/NNP
and/CC
the/DT
Securities/NNP
Association/NNP
,/,
are/VBP
gearing/VBG
up/RP
in/IN
case/NN
a/DT
crisis/NN
wallops/VBZ
the/DT
London/NNP
market/NN
./.
The/DT
bank/NN
was/VBD
in/IN
touch/NN
with/IN
other/JJ
major/JJ
central/JJ
banks/NNS
over/IN
the/DT
weekend/NN
and/CC
was/VBD
preparing/VBG
to/TO
make/VB
capital/NN
available/JJ
to/TO
dealers/NNS
if/IN
needed/VBN
,/,
as/IN
it/PRP
did/VBD
in/IN
the/DT
1987/CD
crash/NN
,/,
according/VBG
to/TO
people/NNS
familiar/JJ
with/IN
the/DT
bank/NN
's/POS
strategy/NN
./.
However/RB
,/,
in/IN
an/DT
unusual/JJ
public/NN
statement/NN
,/,
the/DT
bank/NN
sought/VBD
to/TO
play/VB
down/RB
any/DT
note/NN
of/IN
crisis/NN
./.
Said/VBD
a/DT
spokesman/NN
:/:
``/``
There/EX
's/VBZ
no/DT
reason/NN
for/IN
such/JJ
an/DT
exaggerated/VBN
fall/NN
in/IN
London/NNP
,/,
where/WRB
share/NN
values/NNS
are/VBP
n't/RB
underpinned/VBN
in/IN
the/DT
same/JJ
degree/NN
as/IN
New/NNP
York/NNP
by/IN
highly/RB
leveraged/VBN
situations/NNS
./.
''/''
The/DT
Securities/NNP
Association/NNP
,/,
which/WDT
regulates/VBZ
London/NNP
's/POS
stock/NN
markets/NNS
,/,
said/VBD
that/IN
if/IN
prices/NNS
plunge/VBP
today/NN
all/DT
dealers/NNS
will/MD
be/VB
ordered/VBN
to/TO
report/VB
their/PRP$
capital/NN
and/CC
market/NN
positions/NNS
daily/RB
./.
``/``
We/PRP
're/VBP
monitoring/VBG
things/NNS
very/RB
closely/RB
,/,
''/''
a/DT
spokeswoman/NN
said/VBD
./.
Even/RB
before/IN
Friday/NNP
's/POS
New/NNP
York/NNP
nosedive/NN
,/,
the/DT
London/NNP
market/NN
had/VBD
been/VBN
facing/VBG
heavy/JJ
uncertainty/NN
because/IN
of/IN
worries/NNS
over/IN
the/DT
British/JJ
economy/NN
./.
After/IN
the/DT
one-point/JJ
rise/NN
Oct./NNP
5/CD
to/TO
15/CD
%/NN
,/,
Britain/NNP
's/POS
base/NN
interest/NN
rate/NN
stands/VBZ
at/IN
its/PRP$
highest/JJS
level/NN
in/IN
eight/CD
years/NNS
./.
Many/JJ
economists/NNS
have/VBP
been/VBN
predicting/VBG
that/IN
the/DT
country/NN
's/POS
economic/JJ
growth/NN
will/MD
be/VB
little/JJ
more/JJR
than/IN
1/CD
%/NN
in/IN
Responding/VBG
to/TO
the/DT
developments/NNS
,/,
the/DT
Financial/NNP
Times/NNP
100-share/JJ
index/NN
,/,
which/WDT
had/VBD
been/VBN
slightly/RB
higher/JJR
most/RBS
of/IN
the/DT
day/NN
,/,
closed/VBN
at/IN
2233.9/CD
,/,
down/RB
3.9/CD
points/NNS
from/IN
Thursday/NNP
./.
The/DT
impending/JJ
stock/NN
market/NN
troubles/NNS
could/MD
pose/VB
a/DT
dilemma/NN
for/IN
already/RB
embattled/VBN
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
Nigel/NNP
Lawson/NNP
./.
A/DT
market/NN
plunge/NN
in/IN
Britain/NNP
could/MD
bring/VB
pressure/NN
for/IN
him/PRP
to/TO
lower/VB
interest/NN
rates/NNS
./.
But/CC
a/DT
rate/NN
cut/NN
could/MD
weaken/VB
the/DT
recently/RB
depressed/VBN
pound/NN
,/,
which/WDT
late/RB
Friday/NNP
staged/VBD
a/DT
sharp/JJ
rally/NN
against/IN
the/DT
dollar/NN
after/IN
news/NN
of/IN
the/DT
New/NNP
York/NNP
market/NN
sell-off/NN
./.
One/CD
person/NN
who/WP
firmly/RB
believes/VBZ
London/NNP
is/VBZ
headed/VBN
for/IN
trouble/NN
no/DT
matter/NN
what/WP
happens/VBZ
elsewhere/RB
is/VBZ
Peter/NNP
Thompson/NNP
./.
This/DT
widely/RB
followed/VBN
stock/NN
market/NN
forecaster/NN
achieved/VBD
fame/NN
by/IN
predicting/VBG
,/,
in/IN
July/NNP
1987/CD
,/,
the/DT
October/NNP
crash/NN
of/IN
that/DT
year/NN
./.
Mr./NNP
Thompson/NNP
,/,
a/DT
consultant/NN
to/TO
Barclay/NNP
de/IN
Zoete/NNP
Wedd/NNP
Securities/NNP
Ltd./NNP
,/,
jolted/VBD
the/DT
London/NNP
market/NN
last/JJ
Monday/NNP
by/IN
predicting/VBG
that/IN
another/DT
bear/NN
market/NN
is/VBZ
at/IN
hand/NN
./.
``/``
London/NNP
will/MD
open/VB
lower/RBR
today/NN
Tokyo/NNP
opens/VBZ
lower/RBR
,/,
''/''
Mr./NNP
Thompson/NNP
said/VBD
in/IN
an/DT
interview/NN
./.
``/``
Market/NN
makers/NNS
will/MD
mark/VB
down/RB
prices/NNS
so/IN
bears/NNS
ca/MD
n't/RB
go/VB
short/JJ
to/TO
them/PRP
at/IN
too/RB
advantageous/JJ
a/DT
price/NN
./.
''/''
By/IN
going/VBG
short/JJ
,/,
a/DT
market/NN
pessimist/NN
sells/VBZ
borrowed/VBN
shares/NNS
in/IN
the/DT
hope/NN
of/IN
buying/VBG
them/PRP
back/RB
later/RBR
at/IN
a/DT
profit/NN
./.
Any/DT
big/JJ
drop/NN
in/IN
London/NNP
prices/NNS
will/MD
further/RBR
cool/VB
the/DT
already/RB
jaded/JJ
British/JJ
appetite/NN
for/IN
leveraged/VBN
buy-outs/NNS
,/,
analysts/NNS
said/VBD
./.
Here/RB
are/VBP
price/NN
trends/NNS
on/IN
the/DT
world/NN
's/POS
major/JJ
stock/NN
markets/NNS
,/,
as/IN
calculated/VBN
by/IN
Morgan/NNP
Stanley/NNP
Capital/NNP
International/NNP
Perspective/NNP
,/,
Geneva/NNP
./.
To/TO
make/VB
them/PRP
directly/RB
comparable/JJ
,/,
each/DT
index/NN
is/VBZ
based/VBN
on/IN
the/DT
close/NN
of/IN
1969/CD
equaling/VBG
100/CD
./.
The/DT
percentage/NN
change/NN
is/VBZ
since/IN
year-end/NN
./.
John/NNP
W./NNP
Day/NNP
,/,
president/NN
of/IN
Allied-Signal/NNP
Automotive/NNP
and/CC
executive/JJ
vice/NN
president/NN
of/IN
Allied-Signal/NNP
Inc./NNP
,/,
has/VBZ
been/VBN
named/VBN
to/TO
the/DT
board/NN
of/IN
this/DT
bank/NN
holding/VBG
company/NN
./.
Mr./NNP
Day/NNP
,/,
56/CD
years/NNS
old/JJ
,/,
succeeds/VBZ
J./NNP
Mason/NNP
Reynolds/NNP
,/,
who/WP
retired/VBD
./.
Dallas/NNP
investor/NN
Harold/NNP
Simmons/NNP
,/,
who/WP
has/VBZ
been/VBN
gobbling/VBG
up/IN
Lockheed/NNP
Corp./NNP
shares/NNS
and/CC
only/RB
two/CD
months/NNS
ago/RB
told/VBD
this/DT
newspaper/NN
that/IN
he/PRP
was/VBD
in/IN
the/DT
stock/NN
for/IN
the/DT
long/JJ
term/NN
,/,
now/RB
insists/VBZ
he/PRP
wants/VBZ
to/TO
sell/VB
./.
In/IN
an/DT
interview/NN
published/VBD
yesterday/NN
with/IN
the/DT
Los/NNP
Angeles/NNP
Daily/NNP
News/NNP
,/,
Mr./NNP
Simmons/NNP
said/VBD
:/:
``/``
Lockheed/NNP
is/VBZ
actually/RB
just/RB
a/DT
decoy/NN
./.
I/PRP
have/VBP
several/JJ
decoys/NNS
out/IN
there/RB
because/IN
there/EX
's/VBZ
really/RB
something/NN
else/RB
that/IN
I/PRP
want/VBP
to/TO
slip/VB
up/RP
on/IN
./.
You/PRP
've/VBP
got/VBD
to/TO
put/VB
out/RB
misinformation/NN
if/IN
you/PRP
really/RB
want/VBP
to/TO
buy/VB
something/NN
for/IN
a/DT
fair/JJ
price/NN
./.
''/''
Mr./NNP
Simmons/NNP
,/,
who/WP
holds/VBZ
6.6/CD
million/CD
shares/NNS
,/,
or/CC
a/DT
10.43/CD
%/NN
stake/NN
,/,
in/IN
Lockheed/NNP
,/,
added/VBD
that/IN
he/PRP
is/VBZ
n't/RB
at/IN
all/DT
interested/VBN
in/IN
taking/VBG
over/RP
the/DT
Calabasas/NNP
,/,
Calif./NNP
,/,
aerospace/NN
concern/NN
./.
``/``
Not/RB
now/RB
and/CC
not/RB
ever/RB
,/,
''/''
he/PRP
told/VBD
the/DT
newspaper/NN
./.
``/``
Actually/RB
,/,
I/PRP
wish/VBP
I/PRP
were/VB
out/IN
of/IN
Lockheed/NNP
./.
The/DT
defense/NN
industry/NN
seems/VBZ
to/TO
be/VB
getting/VBG
more/RBR
uncertain/JJ
all/DT
the/DT
time/NN
./.
So/IN
I/PRP
'm/VBP
a/DT
seller/NN
./.
Put/VB
it/PRP
in/IN
big/JJ
black/JJ
letters/NNS
and/CC
underline/VB
it/PRP
./.
''/''
Lockheed/NNP
's/POS
share/NN
price/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
has/VBZ
been/VBN
propped/VBN
up/RP
in/IN
recent/JJ
weeks/NNS
,/,
despite/IN
disappointing/JJ
earnings/NNS
,/,
because/IN
of/IN
Mr./NNP
Simmons/NNP
's/POS
interest/NN
in/IN
the/DT
company/NN
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Lockheed/NNP
slipped/VBD
$/$
1/CD
in/IN
Friday/NNP
's/POS
market/NN
slump/NN
to/TO
close/VB
at/IN
$/$
48/CD
a/DT
share/NN
./.
Michael/NNP
Lamb/NNP
,/,
who/WP
closely/RB
tracks/VBZ
Mr./NNP
Simmons/NNP
's/POS
holdings/NNS
for/IN
a/DT
Kansas/NNP
City/NNP
,/,
Mo./NNP
,/,
firm/NN
called/VBD
Wealth/NNP
Monitors/NNP
,/,
said/VBD
he/PRP
is/VBZ
skeptical/JJ
about/IN
the/DT
stated/VBN
intention/NN
to/TO
sell/VB
off/RP
Lockheed/NNP
shares/NNS
./.
He/PRP
added/VBD
that/IN
while/IN
one/CD
Simmons/NNP
holding/VBG
company/NN
,/,
Valhi/NNP
Inc./NNP
,/,
has/VBZ
sold/VBN
272,000/CD
Lockheed/NNP
shares/NNS
in/IN
recent/JJ
months/NNS
,/,
his/PRP$
other/JJ
companies/NNS
have/VBP
bought/VBN
up/RP
880,000/CD
./.
``/``
Does/VBZ
that/DT
sound/VB
like/IN
a/DT
seller/NN
to/TO
you/PRP
?/.
''/''
Mr./NNP
Lamb/NNP
said/VBD
yesterday/NN
./.
``/``
It/PRP
just/RB
does/VBZ
n't/RB
make/VB
any/DT
sense/NN
./.
''/''
Mr./NNP
Simmons/NNP
could/MD
n't/RB
be/VB
reached/VBN
to/TO
elaborate/VB
,/,
and/CC
Lockheed/NNP
officials/NNS
could/MD
n't/RB
be/VB
reached/VBN
to/TO
comment/VB
on/IN
the/DT
Daily/NNP
News/NNP
article/NN
./.
But/CC
Mr./NNP
Lamb/NNP
said/VBD
it/PRP
's/POS
Mr./NNP
Simmons/NNP
's/POS
style/NN
to/TO
try/VB
and/CC
leave/VB
Wall/NNP
Street/NNP
befuddled/VBD
./.
He/PRP
said/VBD
Mr./NNP
Simmons/NNP
knows/VBZ
the/DT
arbitrage/NN
community/NN
``/``
can/MD
be/VB
a/DT
detriment/NN
by/IN
driving/VBG
the/DT
share/NN
price/NN
up/RB
./.
''/''
Mr./NNP
Lamb/NNP
said/VBD
if/IN
the/DT
arbitrageurs/NNS
get/VBP
confused/VBN
,/,
maybe/RB
they/PRP
'll/MD
move/VB
out/IN
of/IN
the/DT
stock/NN
and/CC
leave/VB
more/JJR
for/IN
Mr./NNP
Simmons/NNP
to/TO
grab/VB
./.
Vitro/NNP
S.A./NNP
said/VBD
it/PRP
signed/VBD
a/DT
definitive/JJ
agreement/NN
to/TO
acquire/VB
Anchor/NNP
Glass/NNP
Container/NNP
Corp./NNP
for/IN
$/$
21.25/CD
a/DT
share/NN
,/,
or/CC
$/$
265/CD
million/CD
,/,
in/IN
the/DT
largest/JJS
takeover/NN
of/IN
an/DT
American/JJ
company/NN
by/IN
a/DT
Mexican/JJ
concern/NN
./.
Anchor/NNP
was/VBD
relatively/RB
unaffected/JJ
by/IN
Friday/NNP
's/POS
market/NN
plunge/NN
,/,
perhaps/RB
because/IN
Vitro/NNP
was/VBD
bidding/VBG
for/IN
the/DT
company/NN
./.
In/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
Anchor/NNP
closed/VBD
at/IN
$/$
18.375/CD
,/,
down/RB
$/$
1.375/CD
./.
Yesterday/NN
's/POS
announcement/NN
of/IN
the/DT
accord/NN
culminated/VBD
a/DT
two-month/JJ
long/JJ
battle/NN
for/IN
the/DT
Tampa/NNP
,/,
Fla./NNP
,/,
maker/NN
of/IN
bottles/NNS
and/CC
other/JJ
glass/NN
containers/NNS
./.
Anchor/NNP
had/VBD
been/VBN
fighting/VBG
Vitro/NNP
's/POS
earlier/JJR
$/$
20-a-share/JJ
tender/NN
offer/NN
and/CC
agreed/VBD
to/TO
the/DT
sweetened/VBN
bid/NN
after/IN
a/DT
special/JJ
committee/NN
of/IN
Anchor/NNP
's/POS
board/NN
put/VBD
the/DT
company/NN
on/IN
the/DT
block/NN
./.
Anchor/NNP
said/VBD
previously/RB
that/IN
it/PRP
held/VBD
talks/NNS
with/IN
other/JJ
parties/NNS
,/,
but/CC
no/DT
other/JJ
bids/NNS
emerged/VBD
./.
Vitro/NNP
,/,
which/WDT
already/RB
owns/VBZ
1,430,000/CD
Anchor/NNP
shares/NNS
,/,
agreed/VBD
to/TO
buy/VB
the/DT
remaining/JJ
12,470,000/CD
shares/NNS
outstanding/JJ
through/IN
THR/NNP
Corp./NNP
,/,
an/DT
indirect/JJ
subsidiary/NN
of/IN
Vitro/NNP
./.
The/DT
Monterrey/NNP
,/,
Mexico/NNP
,/,
conglomerate/NN
also/RB
confirmed/VBD
a/DT
previous/JJ
announcement/NN
that/IN
it/PRP
would/MD
acquire/VB
closely/RB
held/VBN
Latchford/NNP
Glass/NNP
Co./NNP
of/IN
Huntington/NNP
Park/NNP
,/,
Calif./NNP
,/,
in/IN
a/DT
separate/JJ
transaction/NN
expected/VBN
to/TO
close/VB
at/IN
the/DT
same/JJ
time/NN
as/IN
the/DT
completion/NN
of/IN
the/DT
Anchor/NNP
takeover/NN
./.
The/DT
purchase/NN
price/NN
of/IN
the/DT
Latchford/NNP
transaction/NN
was/VBD
n't/RB
disclosed/VBD
./.
Vitro/NNP
said/VBD
Security/NNP
Pacific/NNP
National/NNP
Bank/NNP
committed/VBD
$/$
139/CD
million/CD
to/TO
finance/VB
the/DT
purchase/NN
of/IN
Anchor/NNP
and/CC
an/DT
affiliate/NN
of/IN
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
Securities/NNP
Corp./NNP
committed/VBD
$/$
155/CD
million/CD
in/IN
a/DT
bridge/NN
loan/NN
to/TO
finance/VB
the/DT
Anchor/NNP
and/CC
Latchford/NNP
acquisitions/NNS
./.
Ernesto/NNP
Martens/NNP
R./NNP
,/,
Vitro/NNP
's/POS
chief/JJ
executive/NN
officer/NN
,/,
said/VBD
the/DT
company/NN
intends/VBZ
to/TO
keep/VB
Anchor/NNP
based/VBN
in/IN
Tampa/NNP
and/CC
that/IN
the/DT
unit/NN
would/MD
be/VB
run/VBN
independently/RB
by/IN
U.S./NNP
managers/NNS
./.
Mr./NNP
Martens/NNP
called/VBD
the/DT
takeover/NN
a/DT
``/``
unique/JJ
strategic/JJ
opportunity/NN
''/''
for/IN
Vitro/NNP
to/TO
become/VB
``/``
a/DT
world/NN
player/NN
''/''
in/IN
the/DT
glass-container/JJ
industry/NN
./.
Among/IN
other/JJ
things/NNS
,/,
Vitro/NNP
makes/VBZ
glass/NN
containers/NNS
,/,
flat/JJ
glass/NN
and/CC
glass-making/JJ
machinery/NN
./.
From/IN
the/DT
professional/JJ
money/NN
manager/NN
to/TO
the/DT
big/JJ
overseas/JJ
currency/NN
player/NN
to/TO
the/DT
little/JJ
guy/NN
with/IN
his/PRP$
IRA/NNP
in/IN
a/DT
mutual/JJ
fund/NN
,/,
the/DT
bulletin/NN
from/IN
Wall/NNP
Street/NNP
came/VBD
as/IN
a/DT
shock/NN
--/:
followed/VBD
swiftly/RB
by/IN
a/DT
sickening/JJ
recollection/NN
of/IN
the/DT
pattern/NN
played/VBD
out/RP
in/IN
the/DT
'87/CD
crash/NN
:/:
a/DT
100-point-plus/JJ
plunge/NN
on/IN
a/DT
Friday/NNP
,/,
a/DT
weekend/NN
of/IN
worrying/VBG
in/IN
between/IN
,/,
and/CC
then/RB
disaster/NN
on/IN
Monday/NNP
./.
Who/WP
could/MD
be/VB
blamed/VBN
for/IN
wondering/VBG
if/IN
it/PRP
is/VBZ
all/DT
happening/VBG
again/RB
,/,
in/IN
another/DT
nervous/JJ
October/NNP
?/.
``/``
It/PRP
's/VBZ
scaring/VBG
the/DT
hell/NN
out/IN
of/IN
me/PRP
,/,
''/''
says/VBZ
Tom/NNP
Loughlin/NNP
,/,
a/DT
systems/NNS
analyst/NN
and/CC
small/JJ
investor/NN
in/IN
Boston/NNP
./.
Friday/NNP
's/POS
events/NNS
demonstrate/VBP
that/IN
despite/IN
all/DT
the/DT
post-1987/JJ
studies/NNS
and/CC
reforms/NNS
,/,
the/DT
stock/NN
market/NN
can/MD
still/RB
plunge/VB
with/IN
dizzying/JJ
steepness/NN
./.
The/DT
190.58-point/JJ
drop/NN
was/VBD
the/DT
second-largest/JJ
in/IN
magnitude/NN
ever/RB
,/,
and/CC
the/DT
12th/JJ
worst/JJS
on/IN
a/DT
percentage/NN
basis/NN
./.
But/CC
what/WP
was/VBD
most/RBS
terrifying/JJ
was/VBD
its/PRP$
speed/NN
:/:
The/DT
market/NN
dropped/VBD
154/CD
points/NNS
in/IN
only/RB
65/CD
minutes/NNS
,/,
pausing/VBG
only/RB
as/IN
the/DT
close/NN
neared/VBD
./.
Moreover/RB
,/,
this/DT
plunge/NN
came/VBD
in/IN
a/DT
time/NN
of/IN
relatively/RB
benign/JJ
economic/JJ
conditions/NNS
,/,
raising/VBG
the/DT
question/NN
of/IN
how/WRB
the/DT
markets/NNS
might/MD
react/VB
when/WRB
a/DT
serious/JJ
economic/JJ
upset/NN
,/,
such/JJ
as/IN
a/DT
recession/NN
,/,
is/VBZ
on/IN
the/DT
horizon/NN
./.
But/CC
despite/IN
its/PRP$
hair-trigger/JJ
edginess/NN
,/,
whether/IN
the/DT
market/NN
today/NN
will/MD
in/IN
fact/NN
mirror/VB
1987/CD
with/IN
a/DT
further/JJ
dive/NN
is/VBZ
a/DT
far/RB
different/JJ
matter/NN
./.
There/EX
are/VBP
many/JJ
reasons/NNS
to/TO
think/VB
that/IN
what/WP
appeared/VBD
Friday/NNP
is/VBZ
another/DT
species/NN
of/IN
bear/NN
,/,
and/CC
a/DT
less/RBR
vicious/JJ
one/CD
./.
The/DT
reasons/NNS
include/VBP
the/DT
obvious/JJ
differences/NNS
in/IN
the/DT
market/NN
between/IN
this/DT
fall/NN
and/CC
1987/CD
:/:
Interest/NN
rates/NNS
have/VBP
n't/RB
been/VBN
rising/VBG
this/DT
time/NN
,/,
as/IN
they/PRP
were/VBD
in/IN
1987/CD
;/:
the/DT
dollar/NN
,/,
though/RB
hit/VBD
Friday/NNP
,/,
has/VBZ
n't/RB
been/VBN
eroding/VBG
dangerously/RB
;/:
the/DT
economy/NN
is/VBZ
n't/RB
overheating/VBG
;/:
and/CC
,/,
above/IN
all/DT
,/,
stocks/NNS
are/VBP
far/RB
from/IN
being/VBG
as/RB
wildly/RB
overpriced/VBN
:/:
They/PRP
are/VBP
selling/VBG
at/IN
only/RB
about/RB
13/CD
times/NNS
per-share/JJ
earnings/NNS
,/,
compared/VBN
with/IN
about/RB
20/CD
two/CD
years/NNS
ago/RB
./.
And/CC
this/DT
time/NN
,/,
the/DT
regulators/NNS
are/VBP
moving/VBG
with/IN
more/JJR
dispatch/NN
./.
The/DT
Federal/NNP
Reserve/NNP
has/VBZ
already/RB
indicated/VBN
that/IN
it/PRP
will/MD
provide/VB
the/DT
credit/NN
needed/VBD
to/TO
see/VB
that/IN
there/EX
is/VBZ
n't/RB
a/DT
liquidity/NN
squeeze/NN
today/NN
./.
Many/JJ
traders/NNS
think/VBP
the/DT
Fed/NNP
will/MD
quickly/RB
lower/VB
interest/NN
rates/NNS
,/,
a/DT
move/NN
that/WDT
would/MD
be/VB
a/DT
plus/NN
for/IN
stocks/NNS
./.
--/:
The/DT
levels/NNS
of/IN
selling/NN
of/IN
U.S/NNP
and/CC
foreign/JJ
stocks/NNS
in/IN
Asian/JJ
and/CC
European/JJ
markets/NNS
,/,
which/WDT
open/VBP
well/RB
before/IN
New/NNP
York/NNP
's/POS
./.
In/IN
early/RB
trading/NN
in/IN
Tokyo/NNP
Monday/NNP
,/,
share/NN
prices/NNS
fell/VBD
1.7/CD
%/NN
./.
After/IN
the/DT
initial/JJ
slide/NN
,/,
the/DT
market/NN
appeared/VBD
to/TO
be/VB
turning/VBG
around/RP
but/CC
by/IN
early/JJ
afternoon/NN
was/VBD
headed/VBN
lower/RBR
./.
--/:
Whether/IN
the/DT
buy-out/NN
of/IN
United/NNP
Airlines/NNP
parent/NN
UAL/NNP
Corp./NNP
,/,
whose/WP$
financing/NN
failure/NN
triggered/VBD
Friday/NNP
's/POS
free/JJ
fall/NN
,/,
can/MD
be/VB
put/VBN
back/RB
together/RB
./.
Late/RB
yesterday/NN
,/,
it/PRP
was/VBD
n't/RB
clear/JJ
the/DT
buyers/NNS
could/MD
make/VB
a/DT
new/JJ
bid/NN
by/IN
today/NN
./.
The/DT
lower/JJR
UAL/NNP
opens/VBZ
,/,
the/DT
more/JJR
traders/NNS
who/WP
've/VBP
bought/VBN
with/IN
borrowed/VBN
money/NN
will/MD
have/VB
to/TO
sell/VB
UAL/NNP
and/CC
other/JJ
takeover/NN
stocks/NNS
to/TO
meet/VB
margin/NN
calls/NNS
./.
--/:
The/DT
levels/NNS
of/IN
early/JJ
stock-index/JJ
futures/NNS
trading/VBG
in/IN
Chicago/NNP
./.
That/DT
market/NN
shut/VBD
down/RP
early/RB
on/IN
Friday/NNP
,/,
leaving/VBG
millions/NNS
of/IN
dollars/NNS
of/IN
sell/NN
orders/NNS
unexecuted/VBN
./.
Heavy/JJ
index-futures/NNS
selling/NN
often/RB
pulls/VBZ
the/DT
stock/NN
market/NN
down/RB
./.
--/:
The/DT
pressures/NNS
on/IN
mutual-fund/JJ
companies/NNS
to/TO
sell/VB
stock/NN
in/IN
order/NN
to/TO
meet/VB
demands/NNS
from/IN
customers/NNS
for/IN
redemptions/NNS
./.
On/IN
Black/NNP
Monday/NNP
,/,
some/DT
funds/NNS
sold/VBD
hundreds/NNS
of/IN
millions/NNS
of/IN
dollars/NNS
in/IN
stocks/NNS
after/IN
being/VBG
inundated/VBN
with/IN
redemptions/NNS
./.
But/CC
late/RB
yesterday/NN
,/,
the/DT
biggest/JJS
fund/NN
group/NN
,/,
Fidelity/NNP
Investments/NNP
,/,
said/VBD
this/DT
weekend/NN
's/POS
redemptions/NNS
were/VBD
running/VBG
at/IN
under/IN
one-third/JJ
the/DT
level/NN
before/IN
Oct./NNP
19/CD
,/,
1987/CD
./.
--/:
Any/DT
action/NN
by/IN
the/DT
Federal/NNP
Reserve/NNP
./.
Any/DT
move/NN
to/TO
lower/VB
interest/NN
rates/NNS
,/,
for/IN
example/NN
,/,
would/MD
be/VB
a/DT
positive/NN
for/IN
stocks/NNS
,/,
by/IN
making/VBG
fixed-income/JJ
investments/NNS
less/RBR
competitive/JJ
with/IN
them/PRP
./.
Much/RB
as/IN
in/IN
the/DT
1987/CD
crash/NN
,/,
the/DT
spark/NN
that/WDT
lit/VBD
the/DT
fuse/NN
on/IN
Friday/NNP
was/VBD
a/DT
news/NN
announcement/NN
that/IN
,/,
at/IN
first/JJ
blush/NN
,/,
seemed/VBD
to/TO
have/VB
little/JJ
bearing/NN
on/IN
the/DT
market/NN
as/IN
a/DT
whole/NN
./.
When/WRB
the/DT
UAL/NNP
buy-out/NN
group/NN
said/VBD
it/PRP
could/MD
n't/RB
get/VB
bank/NN
financing/NN
for/IN
its/PRP$
$/$
6.79/CD
billion/CD
deal/NN
,/,
the/DT
announcement/NN
sent/VBD
takeover-stock/JJ
traders/NNS
scrambling/VBG
to/TO
sell/VB
United/NNP
,/,
other/JJ
airline/NN
stocks/NNS
and/CC
then/RB
other/JJ
real/JJ
or/CC
rumored/VBN
takeover/NN
stocks/NNS
./.
The/DT
Standard/NNP
&/CC
Poor/NNP
's/POS
500-stock/JJ
index/NN
futures/NNS
took/VBD
only/RB
15/CD
minutes/NNS
from/IN
the/DT
UAL/NNP
announcement/NN
,/,
at/IN
2:54/CD
p.m./NN
,/,
to/TO
hit/VB
their/PRP$
first/JJ
``/``
circuit/NN
breaker/NN
,/,
''/''
a/DT
30-minute/JJ
trading/NN
halt/NN
that/WDT
kicks/VBZ
in/RP
when/WRB
the/DT
futures/NNS
drop/VBP
the/DT
equivalent/NN
of/IN
100/CD
points/NNS
on/IN
the/DT
Dow/NNP
./.
When/WRB
the/DT
futures/NNS
reopened/VBD
at/IN
3:30/CD
,/,
it/PRP
took/VBD
only/RB
15/CD
minutes/NNS
more/JJR
for/IN
them/PRP
to/TO
hit/VB
the/DT
next/JJ
100-point-equivalency/JJ
limit/NN
,/,
when/WRB
S&P/NNP
trading/NN
halted/VBD
for/IN
the/DT
day/NN
./.
At/IN
the/DT
stock/NN
market/NN
's/POS
4/CD
p.m./NN
close/NN
,/,
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
average/NN
was/VBD
withing/IN
60/CD
points/NNS
of/IN
another/DT
circuit/NN
breaker/NN
./.
Had/VBD
the/DT
Dow/NNP
fallen/VBN
250/CD
points/NNS
,/,
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
would/MD
have/VB
been/VBN
halted/VBN
for/IN
an/DT
hour/NN
./.
Many/JJ
investors/NNS
say/VBP
the/DT
circuit/NN
breakers/NNS
,/,
instituted/VBN
following/VBG
the/DT
1987/CD
collapse/NN
,/,
provided/VBN
little/JJ
reassurance/NN
./.
One/CD
Big/NNP
Board/NNP
specialist/NN
complains/VBZ
that/IN
the/DT
Friday/NNP
futures/NNS
halt/NN
,/,
which/WDT
was/VBD
supposed/VBN
to/TO
give/VB
the/DT
markets/NNS
time/NN
to/TO
regain/VB
their/PRP$
equilibrium/NN
because/IN
futures/NNS
prices/NNS
are/VBP
reported/VBN
faster/RBR
,/,
was/VBD
``/``
ridiculous/JJ
;/:
anything/NN
artificial/JJ
that/WDT
gets/VBZ
in/IN
the/DT
way/NN
of/IN
this/DT
market/NN
is/VBZ
very/RB
hard/JJ
to/TO
work/VB
with/IN
./.
''/''
Some/DT
traders/NNS
fear/VBP
circuit/NN
breakers/NNS
hold/VBP
the/DT
risk/NN
of/IN
making/VBG
matters/NNS
worse/JJR
,/,
especially/RB
if/IN
they/PRP
should/MD
halt/VB
stock/NN
trading/NN
./.
But/CC
Big/NNP
Board/NNP
Chairman/NNP
John/NNP
J./NNP
Phelan/NNP
Jr./NNP
maintains/VBZ
that/IN
the/DT
safeguards/NNS
were/VBD
a/DT
success/NN
Friday/NNP
./.
There/EX
were/VBD
also/RB
complaints/NNS
that/IN
the/DT
specialists/NNS
on/IN
the/DT
floor/NN
of/IN
the/DT
Big/NNP
Board/NNP
,/,
who/WP
are/VBP
charged/VBN
with/IN
making/VBG
markets/NNS
in/IN
individual/JJ
stocks/NNS
,/,
performed/VBD
poorly/RB
during/IN
the/DT
plunge/NN
./.
Trading/NN
was/VBD
halted/VBN
in/IN
10/CD
stocks/NNS
when/WRB
specialists/NNS
could/MD
n't/RB
balance/VB
buy/NN
and/CC
sell/NN
orders/NNS
in/IN
some/DT
stocks/NNS
,/,
such/JJ
as/IN
entertainment/NN
giant/NN
Walt/NNP
Disney/NNP
Co/NNP
./.
Seven/CD
never/RB
reopened/VBD
./.
One/CD
futures/NNS
executive/NN
,/,
Christopher/NNP
Pedersen/NNP
of/IN
Twenty-First/NNP
Securities/NNP
Corp./NNP
,/,
says/VBZ
the/DT
specialists/NNS
``/``
were/VBD
not/RB
able/JJ
to/TO
handle/VB
the/DT
imbalances/NNS
on/IN
the/DT
floor/NN
of/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
''/''
But/CC
James/NNP
Maguire/NNP
,/,
chairman/NN
of/IN
Henderson/NNP
Brothers/NNP
Inc./NNP
,/,
a/DT
Big/NNP
Board/NNP
specialist/NN
,/,
retorts/VBZ
:/:
``/``
It/PRP
is/VBZ
easy/JJ
to/TO
say/VB
the/DT
specialist/NN
is/VBZ
n't/RB
doing/VBG
his/PRP$
job/NN
./.
When/WRB
the/DT
dollar/NN
is/VBZ
in/IN
free/JJ
fall/NN
,/,
even/RB
central/JJ
banks/NNS
ca/MD
n't/RB
stop/VB
it/PRP
./.
''/''
One/CD
of/IN
the/DT
most/RBS
puzzling/JJ
aspects/NNS
of/IN
Friday/NNP
's/POS
drop/NN
was/VBD
the/DT
speed/NN
with/IN
which/WDT
the/DT
damage/NN
to/TO
UAL/NNP
spilled/VBD
over/IN
to/TO
other/JJ
stocks/NNS
./.
Market/NN
professionals/NNS
say/VBP
that/IN
major/JJ
arbitragers/NNS
and/CC
others/NNS
such/JJ
as/IN
hedge/JJ
funds/NNS
,/,
which/WDT
were/VBD
heavily/RB
invested/VBN
in/IN
UAL/NNP
and/CC
highly/RB
leveraged/VBN
,/,
could/MD
n't/RB
get/VB
any/DT
cash/NN
out/IN
of/IN
their/PRP$
UAL/NNP
positions/NNS
because/IN
trading/NN
halted/VBD
./.
Once/RB
UAL/NNP
were/VBD
to/TO
reopen/VB
,/,
such/JJ
speculators/NNS
faced/VBD
the/DT
likelihood/NN
of/IN
margin/NN
calls/NNS
--/:
demands/NNS
from/IN
lenders/NNS
to/TO
put/VB
up/RP
more/JJR
cash/NN
for/IN
stock/NN
positions/NNS
bought/VBN
with/IN
borrowed/VBN
funds/NNS
./.
So/RB
such/JJ
traders/NNS
quickly/RB
tried/VBD
to/TO
raise/VB
cash/NN
by/IN
selling/VBG
other/JJ
so-called/JJ
deal/NN
stocks/NNS
,/,
like/IN
AMR/NNP
American/NNP
Airlines/NNP
USAir/NNP
./.
But/CC
then/RB
trading/NN
was/VBD
halted/VBN
because/RB
of/IN
order/NN
imbalances/NNS
--/:
there/EX
were/VBD
far/RB
more/JJR
sellers/NNS
than/IN
buyers/NNS
./.
So/IN
the/DT
``/``
arbs/NNS
''/''
started/VBN
dumping/VBG
positions/NNS
in/IN
their/PRP$
entire/JJ
portfolios/NNS
,/,
including/VBG
major/JJ
blue-chip/JJ
stocks/NNS
that/WDT
have/VBP
had/VBD
large/JJ
price/NN
runups/NNS
this/DT
year/NN
,/,
in/IN
a/DT
desperate/JJ
race/NN
for/IN
cash/NN
./.
AMR/NNP
,/,
subject/NN
of/IN
a/DT
$/$
120-a-share/JJ
bid/NN
from/IN
Donald/NNP
Trump/NNP
,/,
saw/VBD
trading/NN
in/IN
its/PRP$
stock/NN
halted/VBN
at/IN
$/$
98.625/CD
a/DT
share/NN
,/,
down/RB
$/$
.125/CD
,/,
but/CC
was/VBD
quoted/VBN
in/IN
off-exchange/JJ
trading/NN
at/IN
only/RB
$/$
81.50/CD
./.
Paramount/NNP
Communications/NNP
Inc./NNP
,/,
the/DT
subject/NN
of/IN
takeover/NN
whispers/NNS
,/,
plunged/VBD
$/$
6.625/CD
a/DT
share/NN
to/TO
$/$
56.625/CD
./.
Shares/NNP
of/IN
Hilton/NNP
Hotels/NNP
Corp./NNP
,/,
which/WDT
has/VBZ
put/VBN
itself/PRP
up/IN
for/IN
sale/NN
,/,
nosedived/VBD
$/$
21.50/CD
to/TO
$/$
85/CD
a/DT
share/NN
./.
The/DT
deluge/NN
left/VBD
some/DT
investors/NNS
shaken/JJ
and/CC
angry/JJ
./.
``/``
Do/VBP
n't/RB
ask/VB
me/PRP
how/WRB
I/PRP
am/VBP
,/,
''/''
said/VBD
Marshall/NNP
Front/NNP
,/,
a/DT
money/NN
manager/NN
at/IN
Stein/NNP
Roe/NNP
&/CC
Farnham/NNP
Inc./NNP
in/IN
Chicago/NNP
./.
``/``
This/DT
is/VBZ
incredible/JJ
./.
You/PRP
have/VBP
a/DT
classic/JJ
panic/NN
./.
''/''
Frederick/NNP
A./NNP
Moran/NNP
,/,
president/NN
of/IN
Moran/NNP
Asset/NNP
Management/NNP
in/IN
Greenwich/NNP
,/,
Conn./NNP
,/,
said/VBD
computer-aided/JJ
``/``
program/NN
traders/NNS
are/VBP
the/DT
reason/NN
we/PRP
had/VBD
the/DT
last/JJ
crash/NN
,/,
they/PRP
're/VBP
the/DT
reason/NN
we/PRP
're/VBP
having/VBG
this/DT
crash/NN
,/,
and/CC
they/PRP
're/VBP
why/WRB
we/PRP
'll/MD
have/VB
the/DT
next/JJ
crash/NN
./.
They/PRP
're/VBP
a/DT
total/JJ
outrage/NN
./.
''/''
Stephen/NNP
B./NNP
Timbers/NNP
,/,
chief/JJ
investment/NN
officer/NN
of/IN
Kemper/NNP
Financial/NNP
Services/NNP
Inc./NNP
in/IN
Chicago/NNP
,/,
agrees/VBZ
that/IN
none/NN
of/IN
Friday/NNP
's/POS
events/NNS
by/IN
themselves/PRP
added/VBD
up/RP
to/TO
a/DT
190-point/JJ
decline/NN
./.
``/``
Programs/NNS
took/VBD
it/PRP
down/RB
./.
Without/IN
the/DT
programs/NNS
,/,
I/PRP
ca/MD
n't/RB
imagine/VB
it/PRP
would/MD
have/VB
been/VBN
down/RB
50/CD
,/,
''/''
he/PRP
says/VBZ
./.
Many/JJ
market/NN
professionals/NNS
say/VBP
it/PRP
is/VBZ
still/RB
too/RB
soon/RB
to/TO
know/VB
whether/IN
it/PRP
was/VBD
program/NN
traders/NNS
,/,
per/FW
se/FW
,/,
who/WP
were/VBD
to/TO
blame/VB
,/,
but/CC
they/PRP
generally/RB
agree/VB
that/IN
the/DT
computerized/VBN
trading/NN
programs/NNS
that/WDT
have/VBP
now/RB
been/VBN
embraced/VBN
by/IN
an/DT
array/NN
of/IN
professional/JJ
investors/NNS
and/CC
money/NN
managers/NNS
accounted/VBD
for/IN
the/DT
speed/NN
of/IN
the/DT
drop/NN
./.
Traders/NNS
say/VBP
that/IN
Friday/NNP
's/POS
big/JJ
sellers/NNS
included/VBD
Salomon/NNP
Brothers/NNP
Inc./NNP
,/,
which/WDT
was/VBD
reportedly/RB
executing/VBG
trades/NNS
for/IN
a/DT
client/NN
switching/VBG
from/IN
stocks/NNS
to/TO
bonds/NNS
,/,
and/CC
Tudor/NNP
Investments/NNP
,/,
a/DT
prominent/JJ
player/NN
in/IN
the/DT
futures/NNS
markets/NNS
./.
Tudor/NNP
would/MD
n't/RB
comment/VB
;/:
a/DT
spokesman/NN
for/IN
Salomon/NNP
denied/VBD
that/IN
it/PRP
was/VBD
a/DT
heavy/JJ
seller/NN
./.
Michael/NNP
Steinhardt/NNP
,/,
who/WP
only/RB
last/JJ
Monday/NNP
was/VBD
threatening/VBG
a/DT
takeover/NN
of/IN
USAir/NNP
using/VBG
his/PRP$
8.4/CD
%/NN
stake/NN
as/IN
a/DT
club/NN
,/,
says/VBZ
he/PRP
wished/VBD
he/PRP
did/VBD
n't/RB
own/VB
the/DT
stock/NN
when/WRB
Friday/NNP
's/POS
market/NN
left/VBD
him/PRP
with/IN
a/DT
$/$
12.9/CD
million/CD
paper/NN
loss/NN
./.
``/``
This/DT
market/NN
is/VBZ
a/DT
mile/NN
wide/JJ
and/CC
an/DT
inch/NN
deep/JJ
,/,
''/''
he/PRP
says/VBZ
./.
But/CC
Mr./NNP
Steinhardt/NNP
disputed/VBD
that/IN
he/PRP
had/VBD
been/VBN
a/DT
heavy/JJ
seller/NN
of/IN
other/JJ
stocks/NNS
Friday/NNP
to/TO
make/VB
up/RP
for/IN
the/DT
USAir/NNP
losses/NNS
./.
Several/JJ
big/JJ
firms/NNS
that/WDT
do/VBP
index/NN
arbitrage/NN
,/,
in/IN
which/WDT
traders/NNS
buy/VBP
and/CC
sell/VBP
stocks/NNS
and/CC
stock-index/JJ
futures/NNS
simultaneously/RB
to/TO
take/VB
advantage/NN
of/IN
price/NN
differentials/NNS
,/,
say/VBP
they/PRP
could/MD
n't/RB
execute/VB
trades/NNS
because/IN
they/PRP
could/MD
n't/RB
be/VB
sure/JJ
of/IN
prices/NNS
they/PRP
would/MD
get/VB
on/IN
the/DT
stock/NN
exchange/NN
floor/NN
./.
One/CD
takeover/NN
stock/NN
speculator/NN
says/VBZ
that/IN
with/IN
individual/JJ
investors/NNS
frightened/VBN
away/RB
from/IN
the/DT
market/NN
,/,
the/DT
remaining/JJ
participants/NNS
are/VBP
mainly/RB
institutions/NNS
,/,
all/DT
with/IN
instant/JJ
access/NN
to/TO
the/DT
same/JJ
information/NN
,/,
and/CC
the/DT
same/JJ
ability/NN
to/TO
sell/VB
in/IN
an/DT
instant/NN
--/:
that/DT
is/VBZ
,/,
until/IN
all/DT
try/VBP
to/TO
sell/VB
at/IN
once/RB
./.
``/``
If/IN
this/DT
is/VBZ
something/NN
that/WDT
had/VBD
happened/VBN
over/IN
the/DT
last/JJ
few/JJ
weeks/NNS
,/,
nobody/NN
would/MD
have/VB
noticed/VBN
,/,
''/''
the/DT
speculator/NN
says/VBZ
./.
``/``
But/CC
now/RB
it/PRP
just/RB
happens/VBZ
in/IN
an/DT
hour/NN
./.
The/DT
information/NN
is/VBZ
very/RB
quick/JJ
;/:
it/PRP
's/VBZ
often/RB
inaccurate/JJ
;/:
and/CC
reactions/NNS
can/MD
be/VB
irrational/JJ
./.
''/''
The/DT
speed/NN
of/IN
Friday/NNP
's/POS
drop/NN
is/VBZ
likely/JJ
to/TO
reinforce/VB
the/DT
perception/NN
of/IN
many/JJ
small/JJ
investors/NNS
that/IN
the/DT
markets/NNS
are/VBP
even/RB
more/JJR
of/IN
a/DT
casino/NN
and/CC
have/VBP
n't/RB
devised/VBN
a/DT
manner/NN
for/IN
comfortably/RB
handling/VBG
the/DT
awesome/JJ
forces/NNS
that/DT
technology/NN
has/VBZ
heaped/VBN
upon/IN
them/PRP
./.
Despite/IN
two/CD
years/NNS
of/IN
study/NN
,/,
the/DT
marketplace/NN
remains/VBZ
one/CD
where/WRB
ever-anxious/JJ
large/JJ
investors/NNS
,/,
haunted/VBN
by/IN
memories/NNS
of/IN
the/DT
508-point/JJ
plunge/NN
in/IN
1987/CD
and/CC
aided/VBN
by/IN
powerful/JJ
computers/NNS
,/,
can/MD
turn/VB
minor/JJ
market/NN
upsets/NNS
into/IN
major/JJ
calamities/NNS
in/IN
the/DT
space/NN
of/IN
a/DT
few/JJ
hours/NNS
./.
Many/JJ
are/VBP
quick/JJ
to/TO
emphasize/VB
that/IN
just/RB
because/IN
the/DT
market/NN
can/MD
fall/VB
as/RB
fast/JJ
as/IN
it/PRP
did/VBD
Friday/NNP
does/VBZ
n't/RB
mean/VB
it/PRP
will/MD
tank/VB
again/RB
,/,
despite/IN
some/DT
disquieting/JJ
similarities/NNS
between/IN
now/RB
and/CC
October/NNP
1987/CD
./.
As/IN
in/IN
1987/CD
,/,
this/DT
latest/JJS
market/NN
slide/NN
was/VBD
preceded/VBN
by/IN
sparring/VBG
between/IN
nations/NNS
and/CC
government/NN
officials/NNS
over/IN
the/DT
dollar/NN
./.
In/IN
1987/CD
,/,
then-Treasury/JJ
Secretary/NNP
James/NNP
Baker/NNP
was/VBD
threatening/VBG
a/DT
big/JJ
drop/NN
in/IN
the/DT
dollar/NN
if/IN
West/NNP
Germany/NNP
raised/VBD
interest/NN
rates/NNS
./.
This/DT
year/NN
,/,
Federal/NNP
Reserve/NNP
Chairman/NNP
Alan/NNP
Greenspan/NNP
seemed/VBD
to/TO
warn/VB
he/PRP
would/MD
n't/RB
lower/VB
interest/NN
rates/NNS
merely/RB
to/TO
keep/VB
the/DT
dollar/NN
within/IN
an/DT
agreed-on/JJ
exchange/NN
range/NN
./.
In/IN
another/DT
similarity/NN
to/TO
1987/CD
,/,
the/DT
government/NN
was/VBD
threatening/VBG
a/DT
crackdown/NN
on/IN
highly/RB
leveraged/VBN
takeovers/NNS
./.
Then/RB
it/PRP
was/VBD
House/NNP
Budget/NNP
Committee/NNP
Chairman/NNP
Daniel/NNP
Rostenkowski/NNP
threatening/VBG
to/TO
eliminate/VB
the/DT
tax/NN
deductibility/NN
of/IN
interest/NN
for/IN
certain/JJ
debt-financed/JJ
takeovers/NNS
./.
This/DT
year/NN
it/PRP
was/VBD
Transportation/NNP
Secretary/NNP
Samuel/NNP
Skinner/NNP
voicing/VBG
concern/NN
about/IN
airline/NN
buy-outs/NNS
and/CC
threatening/VBG
to/TO
force/VB
changes/NNS
in/IN
the/DT
United/NNP
deal/NN
./.
Some/DT
think/VBP
another/DT
Washington/NNP
factor/NN
this/DT
time/NN
was/VBD
the/DT
Senate/NNP
's/POS
failure/NN
to/TO
pass/VB
capital-gains/NNS
tax/NN
cut/NN
./.
But/CC
market/NN
observers/NNS
point/VBP
out/IN
that/IN
long-term/JJ
government/NN
bond/NN
interest/NN
rates/NNS
,/,
currently/RB
at/IN
7.85/CD
%/NN
,/,
are/VBP
2.5/CD
percentage/NN
points/NNS
lower/JJR
than/IN
the/DT
level/NN
that/WDT
prevailed/VBD
in/IN
October/NNP
1987/CD
,/,
when/WRB
interest/NN
rates/NNS
had/VBD
been/VBN
rising/VBG
for/IN
most/JJS
of/IN
the/DT
year/NN
./.
Another/DT
difference/NN
this/DT
year/NN
is/VBZ
that/DT
stocks/NNS
'/POS
price-earnings/JJ
ratios/NNS
are/VBP
much/RB
lower/JJR
,/,
which/WDT
implies/VBZ
that/IN
they/PRP
may/MD
not/RB
be/VB
so/RB
overpriced/VBN
./.
In/IN
1987/CD
,/,
the/DT
average/JJ
P-E/NNP
ratio/NN
fell/VBD
from/IN
a/DT
peak/NN
of/IN
more/JJR
than/IN
20/CD
to/TO
about/RB
13/CD
just/RB
after/IN
the/DT
crash/NN
./.
This/DT
year/NN
,/,
the/DT
average/JJ
ratio/NN
was/VBD
14/CD
at/IN
the/DT
market/NN
peak/NN
one/CD
week/NN
ago/RB
,/,
and/CC
finished/VBD
Friday/NNP
at/IN
13/CD
./.
On/IN
the/DT
other/JJ
hand/NN
,/,
one/CD
reason/NN
those/DT
ratios/NNS
were/VBD
so/RB
high/JJ
in/IN
1987/CD
was/VBD
that/IN
the/DT
stock/NN
market/NN
had/VBD
been/VBN
anticipating/VBG
an/DT
enormous/JJ
rise/NN
in/IN
corporate/JJ
earnings/NNS
,/,
which/WDT
did/VBD
in/IN
fact/NN
occur/VB
./.
Between/IN
1987/CD
and/CC
1989/CD
,/,
those/DT
profits/NNS
were/VBD
projected/VBN
to/TO
rise/VB
by/IN
50/CD
%/NN
./.
But/CC
now/RB
those/DT
earnings/NNS
are/VBP
hitting/VBG
a/DT
plateau/NN
./.
Just/RB
last/JJ
week/NN
a/DT
string/NN
of/IN
earnings/NNS
disappointments/NNS
unnerved/VBD
some/DT
market/NN
participants/NNS
./.
Next/JJ
year/NN
,/,
earnings/NNS
are/VBP
expected/VBN
to/TO
inch/VB
up/RB
only/RB
2.4/CD
%/NN
./.
Another/DT
factor/NN
that/WDT
has/VBZ
been/VBN
dominating/VBG
the/DT
thinking/NN
of/IN
many/JJ
stock/NN
analysts/NNS
is/VBZ
the/DT
current/JJ
plight/NN
of/IN
the/DT
junk-bond/NN
market/NN
./.
Although/IN
UAL/NNP
,/,
the/DT
second-largest/JJ
leveraged/VBN
buy-out/NN
ever/RB
,/,
was/VBD
to/TO
have/VB
been/VBN
financed/VBN
with/IN
bank/NN
debt/NN
instead/RB
of/IN
junk/NN
bonds/NNS
,/,
its/PRP$
failure/NN
to/TO
obtain/VB
financing/NN
focused/VBN
attention/NN
on/IN
the/DT
entire/NN
market/NN
for/IN
leveraged/NN
deals/NNS
,/,
underscoring/VBG
just/RB
how/WRB
dependent/JJ
the/DT
entire/JJ
market/NN
has/VBZ
become/VBN
on/IN
junk/NN
bonds/NNS
./.
Many/JJ
stocks/NNS
owe/VBP
at/IN
least/JJS
part/NN
of/IN
their/PRP$
market/NN
valuation/NN
to/TO
the/DT
perception/NN
that/IN
they/PRP
could/MD
soon/RB
be/VB
the/DT
subject/NN
of/IN
a/DT
takeover/NN
or/CC
buy-out/NN
./.
Attention/NN
is/VBZ
focused/VBN
on/IN
the/DT
so-called/JJ
breakup/NN
value/NN
of/IN
the/DT
stock/NN
in/IN
the/DT
hands/NNS
of/IN
an/DT
imagined/VBN
acquirer/NN
who/WP
would/MD
buy/VB
the/DT
company/NN
at/IN
a/DT
big/JJ
premium/NN
,/,
perhaps/RB
planning/VBG
to/TO
sell/VB
it/PRP
piece/NN
by/IN
piece/NN
./.
Takeover/NN
specialist/NN
Carl/NNP
Icahn/NNP
,/,
whose/WP$
13.1/CD
%/NN
stake/NN
in/IN
USX/NNP
Corp./NNP
lost/VBD
$/$
151.2/CD
million/CD
in/IN
value/NN
on/IN
Friday/NNP
,/,
says/VBZ
the/DT
stock/NN
market/NN
's/POS
downturn/NN
may/MD
reflect/VB
the/DT
end/NN
of/IN
a/DT
speculative/JJ
period/NN
that/WDT
has/VBZ
generated/VBN
many/JJ
leveraged/VBN
buy-outs/NNS
that/WDT
now/RB
face/VBP
problems/NNS
as/IN
a/DT
result/NN
of/IN
weakness/NN
in/IN
the/DT
junk-bond/NN
market/NN
./.
``/``
While/IN
a/DT
number/NN
of/IN
LBOs/NNS
are/VBP
fine/JJ
,/,
there/EX
are/VBP
also/RB
many/JJ
where/WRB
the/DT
cash/NN
flow/NN
can/MD
not/RB
pay/VB
the/DT
interest/NN
,/,
but/CC
{/(
that/DT
the/DT
buyer/NN
selling/VBG
divisions/NNS
to/TO
a/DT
greater/JJR
fool/NN
to/TO
pay/VB
off/RP
the/DT
debt/NN
,/,
''/''
Mr./NNP
Icahn/NNP
says/VBZ
./.
However/RB
,/,
Mario/NNP
Gabelli/NNP
,/,
a/DT
takeover-stock/JJ
investor/NN
,/,
says/VBZ
that/IN
while/IN
some/DT
of/IN
the/DT
most/RBS
speculative/JJ
deals/NNS
may/MD
now/RB
prove/VB
impossible/JJ
to/TO
finance/VB
,/,
``/``
Companies/NNS
are/VBP
still/RB
going/VBG
to/TO
buy/VB
companies/NNS
around/IN
the/DT
world/NN
./.
''/''
As/IN
on/IN
any/DT
day/NN
on/IN
Wall/NNP
Street/NNP
,/,
there/EX
are/VBP
plenty/RB
of/IN
people/NNS
who/WP
think/VBP
the/DT
market/NN
will/MD
go/VB
up/RB
,/,
and/CC
plenty/NN
who/WP
predict/VBP
a/DT
downturn/NN
./.
``/``
My/PRP$
advice/NN
is/VBZ
to/TO
buy/VB
,/,
''/''
says/VBZ
Elaine/NNP
Garzarelli/NNP
,/,
a/DT
market-timing/JJ
expert/NN
at/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
,/,
who/WP
warned/VBD
clients/NNS
of/IN
danger/NN
just/RB
before/IN
the/DT
1987/CD
crash/NN
./.
She/PRP
compares/VBZ
the/DT
current/JJ
drop-off/NN
to/TO
10%-12/CD
%/NN
corrections/NNS
in/IN
1978/CD
and/CC
1979/CD
./.
And/CC
Treasury/NNP
Secretary/NNP
Nicholas/NNP
Brady/NNP
says/VBZ
the/DT
market/NN
's/POS
drop/NN
Friday/NNP
ought/MD
to/TO
be/VB
seen/VBN
in/IN
the/DT
context/NN
of/IN
a/DT
28.7/CD
%/NN
runup/NN
in/IN
the/DT
Dow/NNP
since/IN
Jan./NNP
1/CD
of/IN
this/DT
year/NN
./.
In/IN
addition/NN
,/,
the/DT
stocks/NNS
as/IN
a/DT
whole/NN
are/VBP
up/RB
60/CD
%/NN
from/IN
the/DT
day/NN
after/IN
the/DT
1987/CD
crash/NN
./.
Since/IN
the/DT
market/NN
hit/VBD
a/DT
record/NN
level/NN
of/IN
2791.41/CD
on/IN
Monday/NNP
,/,
it/PRP
has/VBZ
declined/VBN
by/IN
222.15/CD
points/NNS
,/,
or/CC
8/CD
%/NN
./.
Most/JJS
of/IN
that/DT
occurred/VBD
on/IN
Friday/NNP
./.
Some/DT
think/VBP
the/DT
selling/NN
has/VBZ
a/DT
way/NN
to/TO
go/VB
./.
James/NNP
Awad/NNP
,/,
president/NN
of/IN
BMI/NNP
Capital/NNP
Corp./NNP
in/IN
New/NNP
York/NNP
,/,
says/VBZ
that/IN
despite/IN
the/DT
more/RBR
favorable/JJ
valuation/NN
levels/NNS
,/,
stocks/NNS
could/MD
still/RB
tumble/VB
several/JJ
hundred/CD
points/NNS
in/IN
the/DT
event/NN
of/IN
a/DT
breakdown/NN
in/IN
``/``
the/DT
internal/JJ
structure/NN
of/IN
the/DT
market/NN
./.
''/''
Although/IN
professionals/NNS
were/VBD
bracing/VBG
themselves/PRP
for/IN
some/DT
heavy/JJ
early/RB
selling/NN
on/IN
overseas/JJ
markets/NNS
,/,
many/JJ
did/VBD
n't/RB
detect/VB
any/DT
widespread/JJ
panic/NN
over/IN
the/DT
weekend/NN
among/IN
U.S./NNP
institutions/NNS
and/CC
individual/JJ
investors/NNS
./.
Many/JJ
mutual/JJ
funds/NNS
have/VBP
big/JJ
cash/NN
reserves/NNS
--/:
which/WDT
they/PRP
lacked/VBD
in/IN
1987/CD
--/:
as/IN
a/DT
cushion/NN
against/IN
a/DT
possible/JJ
cascade/NN
of/IN
telephone/NN
sell/NN
orders/NNS
today/NN
./.
Fidelity/NNP
,/,
which/WDT
was/VBD
forced/VBN
to/TO
sell/VB
$/$
800/CD
million/CD
of/IN
stocks/NNS
in/IN
the/DT
1987/CD
crash/NN
,/,
has/VBZ
quadrupled/VBN
the/DT
cash/NN
level/NN
of/IN
the/DT
giant/JJ
Magellan/NNP
fund/NN
./.
The/DT
Boston/NNP
firm/NN
says/VBZ
redemptions/NNS
in/IN
stock/NN
funds/NNS
since/IN
the/DT
Friday/NNP
market/NN
drop/NN
have/VBP
equaled/VBN
less/JJR
than/IN
15/CD
%/NN
of/IN
those/DT
funds/NNS
'/POS
total/JJ
cash/NN
position/NN
of/IN
about/RB
$/$
2/CD
billion/CD
./.
``/``
Two/CD
years/NNS
ago/RB
there/EX
were/VBD
massive/JJ
redemption/NN
levels/NNS
over/IN
the/DT
weekend/NN
and/CC
a/DT
lot/NN
of/IN
fear/NN
around/RP
,/,
''/''
says/VBZ
C./NNP
Bruce/NNP
Johnstone/NNP
,/,
who/WP
runs/VBZ
Fidelity/NNP
's/POS
$/$
5/CD
billion/CD
Equity-Income/NNP
Fund/NNP
./.
``/``
This/DT
feels/VBZ
more/RBR
like/IN
a/DT
one-shot/JJ
deal/NN
--/:
people/NNS
are/VBP
n't/RB
panicking/VBG
./.
''/''
Liquidity/NN
also/RB
appears/VBZ
to/TO
be/VB
far/RB
healthier/JJR
than/IN
it/PRP
was/VBD
in/IN
1987/CD
,/,
when/WRB
a/DT
lack/NN
of/IN
it/PRP
brought/VBD
the/DT
financial/JJ
system/NN
close/JJ
to/TO
break-down/NN
./.
Over/IN
the/DT
weekend/NN
,/,
Federal/NNP
Reserve/NNP
Chairman/NNP
Greenspan/NNP
phoned/VBD
officials/NNS
in/IN
the/DT
U.S./NNP
and/CC
abroad/RB
to/TO
reassure/VB
them/PRP
that/IN
the/DT
Fed/NNP
was/VBD
prepared/VBN
to/TO
inject/VB
massive/JJ
amounts/NNS
of/IN
money/NN
into/IN
the/DT
banking/VBG
system/NN
if/IN
needed/VBN
to/TO
prevent/VB
a/DT
financial/JJ
crisis/NN
./.
And/CC
Mr./NNP
Phelan/NNP
,/,
the/DT
Big/NNP
Board/NNP
's/POS
chairman/NN
,/,
says/VBZ
that/IN
the/DT
exchange/NN
has/VBZ
n't/RB
turned/VBN
up/RP
any/DT
capital/NN
problems/NNS
among/IN
its/PRP$
49/CD
specialist/NN
firms/NNS
,/,
suggesting/VBG
that/IN
the/DT
Big/NNP
Board/NNP
will/MD
have/VB
the/DT
capacity/NN
to/TO
make/VB
orderly/JJ
markets/NNS
even/RB
if/IN
volume/NN
is/VBZ
heavy/JJ
./.
Carl/NNP
N./NNP
Singer/NNP
was/VBD
named/VBN
chairman/NN
of/IN
this/DT
communications/NNS
and/CC
electronics/NNS
equipment/NN
supplier/NN
,/,
succeeding/VBG
Louis/NNP
H./NNP
Wolcott/NNP
,/,
who/WP
resigned/VBD
from/IN
the/DT
board/NN
./.
Mr./NNP
Singer/NNP
will/MD
continue/VB
in/IN
his/PRP$
current/JJ
positions/NNS
as/IN
chairman/NN
of/IN
Miami-based/JJ
Fundamental/NNP
Management/NNP
Corp./NNP
,/,
Microdyne/NNP
's/POS
largest/JJS
stockholder/NN
,/,
and/CC
chairman/NN
of/IN
Mineola/NNP
,/,
N.Y.-based/JJ
Robeson/NNP
Industries/NNP
Corp/NNP
./.
Robert/NNP
P./NNP
Adelman/NNP
,/,
former/JJ
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
Rogers/NNP
Group/NNP
,/,
was/VBD
named/VBN
to/TO
the/DT
Microdyne/NNP
board/NN
slot/NN
vacated/VBN
by/IN
Mr./NNP
Wolcott/NNP
,/,
who/WP
will/MD
continue/VB
with/IN
Microdyne/NNP
as/IN
an/DT
assistant/NN
to/TO
the/DT
president/NN
./.
If/IN
one/CD
thing/NN
was/VBD
clear/JJ
in/IN
the/DT
chaos/NN
of/IN
Friday/NNP
's/POS
market/NN
sell-off/NN
,/,
it/PRP
was/VBD
that/IN
the/DT
collapse/NN
of/IN
the/DT
buy-out/NN
of/IN
UAL/NNP
Corp./NNP
set/VBD
the/DT
whole/JJ
thing/NN
off/RP
./.
But/CC
,/,
it/PRP
turns/VBZ
out/RP
,/,
Wall/NNP
Street/NNP
--/:
quick/JJ
to/TO
read/VB
tea/NN
leaves/NNS
and/CC
quick/JJ
to/TO
panic/VB
--/:
may/MD
have/VB
reached/VBN
the/DT
wrong/JJ
conclusion/NN
about/IN
the/DT
buy-out/NN
's/POS
unraveling/NN
./.
As/IN
word/NN
spread/VBD
Friday/NNP
that/IN
many/JJ
of/IN
the/DT
world/NN
's/POS
biggest/JJS
banks/NNS
had/VBD
refused/VBN
to/TO
participate/VB
in/IN
the/DT
$/$
6.79/CD
billion/CD
leveraged/VBN
transaction/NN
,/,
the/DT
financial/JJ
markets/NNS
assumed/VBD
the/DT
worst/JJS
:/:
If/IN
the/DT
management/NN
of/IN
a/DT
blue-chip/JJ
outfit/NN
like/IN
the/DT
parent/NN
of/IN
United/NNP
Airlines/NNP
ca/MD
n't/RB
get/VB
financing/NN
,/,
then/RB
takeovers/NNS
in/IN
general/JJ
must/MD
be/VB
headed/VBN
toward/IN
extinction/NN
./.
The/DT
market/NN
,/,
already/RB
chastened/VBN
by/IN
a/DT
number/NN
of/IN
leveraged/VBN
buy-outs/NNS
gone/VBN
bad/JJ
,/,
responded/VBD
in/IN
a/DT
flood/NN
of/IN
sell/NN
orders/NNS
./.
Yet/RB
interviews/NNS
with/IN
the/DT
bankers/NNS
who/WP
turned/VBD
down/RP
the/DT
UAL/NNP
proposal/NN
suggest/VBP
the/DT
market/NN
may/MD
have/VB
misinterpreted/VBN
its/PRP$
significance/NN
./.
The/DT
buy-out/NN
of/IN
UAL/NNP
by/IN
a/DT
group/NN
made/VBD
up/RP
of/IN
management/NN
,/,
the/DT
pilots/NNS
union/NN
and/CC
British/NNP
Airways/NNP
PLC/NNP
,/,
ran/VBD
into/IN
difficulty/NN
because/IN
of/IN
its/PRP$
own/JJ
unique/JJ
problems/NNS
,/,
they/PRP
say/VBP
./.
Banks/NNS
did/VBD
n't/RB
suddenly/RB
become/VBN
unwilling/JJ
to/TO
finance/VB
takeovers/NNS
,/,
they/PRP
just/RB
did/VBD
n't/RB
like/VB
the/DT
looks/NNS
of/IN
this/DT
particular/JJ
deal/NN
./.
Specifically/RB
,/,
the/DT
bankers/NNS
said/VBD
that/IN
UAL/NNP
's/POS
management/NN
and/CC
advisers/NNS
pushed/VBD
too/RB
hard/JJ
,/,
trying/VBG
to/TO
keep/VB
too/RB
much/JJ
of/IN
the/DT
potential/JJ
profit/NN
for/IN
themselves/PRP
./.
The/DT
airline/NN
's/POS
top/JJ
two/CD
officers/NNS
,/,
chief/JJ
executive/NN
Stephen/NNP
M./NNP
Wolf/NNP
and/CC
chief/JJ
financial/JJ
officer/NN
John/NNP
C./NNP
Pope/NNP
,/,
for/IN
example/NN
,/,
would/MD
have/VB
made/VBN
a/DT
total/NN
of/IN
more/JJR
than/IN
$/$
100/CD
million/CD
on/IN
the/DT
buy-out/NN
through/IN
stock/NN
options/NNS
they/PRP
hold/VBP
,/,
even/RB
though/IN
their/PRP$
proposal/NN
called/VBD
for/IN
them/PRP
to/TO
put/VB
only/RB
$/$
15/CD
million/CD
of/IN
their/PRP$
own/JJ
funds/NNS
into/IN
the/DT
deal/NN
./.
Moreover/RB
,/,
fees/NNS
and/CC
interest/NN
rates/NNS
paid/VBN
to/TO
the/DT
banks/NNS
would/MD
have/VB
been/VBN
stingy/JJ
--/:
far/RB
below/IN
those/DT
in/IN
comparable/JJ
takeovers/NNS
./.
The/DT
banks/NNS
also/RB
said/VBD
they/PRP
were/VBD
worried/VBN
that/IN
United/VBN
's/POS
rosy/JJ
projections/NNS
of/IN
future/JJ
income/NN
--/:
and/CC
therefore/RB
its/PRP$
ability/NN
to/TO
pay/VB
off/RP
the/DT
debt/NN
--/:
did/VBD
n't/RB
adequately/RB
take/VB
into/IN
account/NN
the/DT
bumpy/JJ
nature/NN
of/IN
the/DT
airline/NN
industry/NN
./.
From/IN
a/DT
lender/NN
's/POS
point/NN
of/IN
view/NN
,/,
``/``
it/PRP
's/VBZ
one/CD
of/IN
the/DT
worst/JJS
big/JJ
takeover/NN
proposals/NNS
we/PRP
've/VBP
seen/VBN
,/,
''/''
said/VBD
an/DT
official/NN
of/IN
First/NNP
Chicago/NNP
Corp./NNP
,/,
one/CD
of/IN
the/DT
banks/NNS
asked/VBN
to/TO
finance/VB
the/DT
buy-out/NN
,/,
which/WDT
notably/RB
did/VBD
n't/RB
include/VB
junk/NN
bonds/NNS
./.
Even/RB
so/RB
,/,
banks/NNS
such/JJ
as/IN
First/NNP
Chicago/NNP
,/,
which/WDT
has/VBZ
a/DT
long/JJ
history/NN
of/IN
ties/NNS
to/TO
UAL/NNP
,/,
stretched/VBD
their/PRP$
lending/NN
guidelines/NNS
as/RB
far/RB
as/IN
possible/JJ
in/IN
hopes/NNS
of/IN
making/VBG
the/DT
proposal/NN
work/VB
./.
``/``
We/PRP
really/RB
gave/VBD
this/DT
thing/NN
nine/CD
looks/NNS
,/,
''/''
the/DT
First/NNP
Chicago/NNP
officer/NN
said/VBD
./.
It/PRP
was/VBD
the/DT
job/NN
of/IN
A.D./NNP
Frazier/NNP
,/,
First/NNP
Chicago/NNP
's/POS
commercial/JJ
lending/NN
chief/NN
,/,
to/TO
call/VB
the/DT
buy-out/NN
group/NN
and/CC
put/VBD
the/DT
best/JJS
possible/JJ
face/NN
on/IN
the/DT
news/NN
./.
``/``
We/PRP
called/VBD
them/PRP
back/RB
and/CC
said/VBD
if/IN
they/PRP
needed/VBD
us/PRP
--/:
if/IN
it/PRP
would/MD
make/VB
a/DT
difference/NN
--/:
we/PRP
'd/MD
come/VB
in/RB
,/,
''/''
another/DT
officer/NN
familiar/JJ
with/IN
the/DT
matter/NN
said/VBD
./.
Of/IN
course/NN
,/,
it/PRP
was/VBD
n't/RB
even/RB
close/JJ
./.
Other/JJ
U.S./NNP
banks/NNS
and/CC
,/,
more/RBR
importantly/RB
,/,
those/DT
in/IN
Japan/NNP
,/,
also/RB
said/VBD
no/UH
./.
In/IN
the/DT
end/NN
,/,
the/DT
proposal/NN
never/RB
got/VBD
far/RB
beyond/IN
the/DT
original/JJ
financing/NN
promises/NNS
made/VBN
by/IN
Citicorp/NNP
and/CC
Chase/NNP
Manhattan/NNP
Corp./NNP
,/,
which/WDT
together/RB
had/VBD
agreed/VBN
to/TO
commit/VB
$/$
3/CD
billion/CD
and/CC
said/VBD
they/PRP
were/VBD
``/``
highly/RB
confident/JJ
''/''
they/PRP
could/MD
raise/VB
an/DT
additional/JJ
$/$
4.2/CD
billion/CD
./.
Representatives/NNS
and/CC
advisers/NNS
to/TO
the/DT
buy-out/NN
group/NN
,/,
called/VBD
Airline/NNP
Acquisition/NNP
Corp./NNP
,/,
met/VBD
throughout/IN
the/DT
weekend/NN
in/IN
an/DT
effort/NN
to/TO
revise/VB
their/PRP$
$/$
300-a-share/JJ
offer/NN
./.
But/CC
prospects/NNS
of/IN
quickly/RB
putting/VBG
together/RB
a/DT
new/JJ
deal/NN
appeared/VBD
bleak/JJ
./.
It/PRP
is/VBZ
``/``
still/RB
unclear/JJ
whether/IN
this/DT
can/MD
be/VB
easily/RB
fixed/VBN
,/,
''/''
one/CD
official/NN
close/JJ
to/TO
the/DT
transaction/NN
said/VBD
yesterday/NN
afternoon/NN
./.
A/DT
pilots/NNS
union/NN
official/NN
said/VBD
the/DT
group/NN
is/VBZ
likely/JJ
to/TO
wait/VB
and/CC
see/VB
what/WP
the/DT
stock/NN
market/NN
does/VBZ
Monday/NNP
before/IN
making/VBG
any/DT
decisions/NNS
./.
``/``
We/PRP
've/VBP
got/VB
a/DT
lot/NN
of/IN
homework/NN
to/TO
do/VB
,/,
a/DT
lot/NN
of/IN
work/NN
ahead/RB
of/IN
us/PRP
,/,
''/''
said/VBD
H./NNP
Bruce/NNP
Bernstein/NNP
,/,
a/DT
lawyer/NN
at/IN
Sidley/NNP
&/CC
Austin/NNP
in/IN
Chicago/NNP
,/,
which/WDT
is/VBZ
representing/VBG
the/DT
bank/NN
group/NN
./.
Both/DT
the/DT
banks/NNS
'/POS
decision/NN
to/TO
decline/VB
financing/NN
and/CC
the/DT
stock/NN
market/NN
's/POS
reaction/NN
caught/VBD
the/DT
buy-out/NN
group/NN
off/IN
guard/NN
./.
Friday/NNP
's/POS
dominoes/NN
began/VBD
falling/VBG
at/IN
2:30/CD
p.m./NN
,/,
when/WRB
the/DT
stock/NN
exchange/NN
halted/VBD
trading/NN
in/IN
UAL/NNP
,/,
pending/VBG
news/NN
./.
The/DT
news/NN
came/VBD
at/IN
2:54/CD
./.
Funds/NNS
committed/VBN
by/IN
banks/NNS
for/IN
the/DT
buy-out/NN
``/``
are/VBP
not/RB
sufficient/JJ
,/,
''/''
the/DT
acquisition/NN
group/NN
announced/VBD
./.
UAL/NNP
was/VBD
trading/VBG
at/IN
$/$
279.75/CD
at/IN
the/DT
time/NN
of/IN
the/DT
halt/NN
and/CC
never/RB
reopened/VBD
for/IN
trading/NN
Friday/NNP
./.
However/RB
,/,
it/PRP
was/VBD
later/RBR
quoted/VBN
by/IN
off-exchange/JJ
market/NN
makers/NNS
at/IN
as/RB
low/JJ
as/IN
$/$
230/CD
a/DT
share/NN
./.
At/IN
3:30/CD
,/,
with/IN
the/DT
market/NN
now/RB
in/IN
a/DT
free/JJ
fall/NN
,/,
representatives/NNS
of/IN
the/DT
buy-out/NN
group/NN
scrambled/VBD
to/TO
a/DT
hastily/RB
called/VBN
meeting/NN
at/IN
Citicorp/NNP
's/POS
offices/NNS
at/IN
399/CD
Park/NNP
Avenue/NNP
in/IN
New/NNP
York/NNP
./.
The/DT
group/NN
was/VBD
trying/VBG
to/TO
assess/VB
what/WP
it/PRP
would/MD
take/VB
to/TO
resuscitate/VB
the/DT
deal/NN
./.
On/IN
the/DT
way/NN
to/TO
the/DT
session/NN
,/,
some/DT
huddled/VBD
around/IN
a/DT
Quotron/NNP
machine/NN
that/WDT
was/VBD
in/IN
the/DT
hallway/NN
outside/IN
the/DT
meeting/NN
room/NN
./.
``/``
The/DT
Dow/NNP
's/VBZ
going/VBG
down/RB
,/,
down/RB
,/,
down/RB
,/,
''/''
said/VBD
one/CD
observer/NN
in/IN
amazement/NN
./.
The/DT
meeting/NN
itself/PRP
,/,
held/VBN
in/IN
the/DT
corporate/JJ
finance/NN
department/NN
on/IN
the/DT
ninth/JJ
floor/NN
,/,
was/VBD
disorganized/JJ
,/,
as/IN
members/NNS
of/IN
Citicorp/NNP
's/POS
and/CC
Chase/NNP
's/POS
syndication/NN
departments/NNS
called/VBD
other/JJ
banks/NNS
trying/VBG
to/TO
figure/VB
out/RP
why/WRB
they/PRP
had/VBD
rejected/VBN
the/DT
deal/NN
./.
At/IN
3:55/CD
,/,
five/CD
minutes/NNS
before/IN
the/DT
market/NN
closed/VBD
,/,
the/DT
meeting/NN
began/VBD
./.
Gathered/VBN
around/IN
a/DT
long/JJ
table/NN
that/WDT
filled/VBD
the/DT
huge/JJ
conference/NN
room/NN
were/VBD
about/RB
30/CD
people/NNS
,/,
including/VBG
representatives/NNS
of/IN
Citicorp/NNP
,/,
Chase/NNP
Manhattan/NNP
,/,
United/NNP
Airlines/NNP
,/,
British/NNP
Airways/NNP
,/,
Lazard/NNP
Freres/NNP
&/CC
Co./NNP
,/,
Salomon/NNP
Brothers/NNP
Inc./NNP
,/,
Skadden/NNP
Arps/NNP
Mr./NNP
Wolf/NNP
's/POS
counsel/NN
Paul/NNP
Weiss/NNP
lawyer/NN
for/IN
the/DT
pilots/NNS
union/NN
One/CD
person/NN
who/WP
was/VBD
n't/RB
present/JJ
:/:
Mr./NNP
Wolf/NNP
himself/PRP
who/WP
,/,
confident/JJ
that/IN
the/DT
deal/NN
would/MD
go/VB
through/RP
,/,
was/VBD
returning/VBG
from/IN
Europe/NNP
,/,
where/WRB
he/PRP
had/VBD
pitched/VBN
the/DT
proposal/NN
to/TO
several/JJ
big/JJ
European/JJ
banks/NNS
./.
``/``
People/NNS
were/VBD
surprised/VBN
,/,
shocked/VBN
and/CC
upset/VBN
,/,
''/''
said/VBD
an/DT
official/NN
at/IN
the/DT
meeting/NN
./.
Mr./NNP
Wolf/NNP
,/,
reached/VBN
at/IN
his/PRP$
Chicago/NNP
home/NN
Saturday/NNP
,/,
declined/VBD
to/TO
comment/VB
./.
As/IN
they/PRP
met/VBD
to/TO
review/VB
what/WP
had/VBD
gone/VBN
wrong/JJ
,/,
the/DT
buy-out/NN
group/NN
quickly/RB
discovered/VBD
that/IN
one/CD
of/IN
the/DT
big/JJ
roadblocks/NNS
had/VBD
been/VBN
Japanese/JJ
lenders/NNS
./.
Although/IN
they/PRP
had/VBD
provided/VBN
the/DT
lion/NN
's/POS
share/NN
of/IN
the/DT
financing/NN
on/IN
the/DT
Northwest/NNP
Airlines/NNP
buy-out/NN
just/RB
a/DT
few/JJ
months/NNS
before/IN
,/,
Japanese/JJ
banks/NNS
had/VBD
said/VBD
no/UH
to/TO
UAL/NNP
./.
The/DT
Japanese/NNS
apparently/RB
balked/VBD
at/IN
several/JJ
aspects/NNS
of/IN
the/DT
proposal/NN
./.
A/DT
senior/JJ
executive/NN
at/IN
one/CD
of/IN
Japan/NNP
's/POS
biggest/JJS
banks/NNS
says/VBZ
the/DT
UAL/NNP
deal/NN
``/``
was/VBD
stretched/VBN
./.
It/PRP
's/VBZ
a/DT
cyclical/JJ
industry/NN
,/,
and/CC
all/DT
the/DT
projections/NNS
that/IN
the/DT
banks/NNS
are/VBP
working/VBG
off/RP
are/VBP
straight/RB
up/RB
./.
So/RB
where/WRB
's/VBZ
the/DT
cycle/NN
?/.
''/''
Japanese/JJ
lenders/NNS
also/RB
recently/RB
have/VBP
grown/VBN
more/RBR
conservative/JJ
toward/IN
highly/RB
leveraged/JJ
transactions/NNS
,/,
partly/RB
because/IN
of/IN
the/DT
recent/JJ
cash-squeeze/NN
at/IN
Canada/NNP
's/POS
Campeau/NNP
Corp./NNP
following/VBG
its/PRP$
leveraged/VBN
purchase/NN
of/IN
Federated/NNP
Department/NNP
Stores/NNP
Inc./NNP
last/JJ
year/NN
./.
Japanese/JJ
banks/NNS
are/VBP
worried/VBN
that/IN
the/DT
government/NN
might/MD
issue/VB
restrictive/JJ
guidelines/NNS
unless/IN
the/DT
banks/NNS
hold/VBP
down/RB
the/DT
number/NN
of/IN
risky/JJ
leveraged-buy-out/JJ
loans/NNS
they/PRP
make/VBP
,/,
says/VBZ
a/DT
Japanese/JJ
monetary/JJ
official/NN
./.
``/``
So/RB
,/,
they/PRP
are/VBP
very/RB
cautious/JJ
,/,
''/''
he/PRP
says/VBZ
./.
A/DT
third/JJ
problem/NN
was/VBD
the/DT
potential/NN
for/IN
labor/NN
unrest/NN
at/IN
UAL/NNP
,/,
something/NN
that/WDT
makes/VBZ
the/DT
Japanese/NNS
particularly/RB
skittish/JJ
./.
The/DT
Japanese/JJ
banks/NNS
were/VBD
reminded/VBN
of/IN
the/DT
labor/NN
tensions/NNS
at/IN
UAL/NNP
all/RB
last/JJ
week/NN
./.
On/IN
Wednesday/NNP
,/,
the/DT
machinists/NNS
union/NN
asked/VBD
the/DT
U.S./NNP
Labor/NNP
Department/NNP
to/TO
step/VB
in/RB
to/TO
stop/VB
the/DT
buy-out/NN
./.
On/IN
Thursday/NNP
,/,
at/IN
their/PRP$
national/JJ
convention/NN
in/IN
Las/NNP
Vegas/NNP
,/,
machinists/NNS
union/NN
leaders/NNS
discussed/VBD
launching/VBG
an/DT
allout/JJ
campaign/NN
against/IN
UAL/NNP
Chairman/NNP
Wolf/NNP
specifically/RB
./.
The/DT
machinists/NNS
have/VBP
opposed/VBN
the/DT
buy-out/NN
because/IN
they/PRP
were/VBD
n't/RB
invited/VBN
to/TO
participate/VB
in/IN
the/DT
deal/NN
and/CC
because/IN
they/PRP
fear/VBP
all/DT
the/DT
debt/NN
that/WDT
would/MD
be/VB
taken/VBN
on/RP
in/IN
the/DT
transaction/NN
would/MD
overburden/VB
the/DT
company/NN
./.
Machinists/NNS
union/NN
leader/NN
John/NNP
Peterpaul/NNP
also/RB
made/VBD
the/DT
union/NN
's/POS
views/NNS
known/VBN
in/IN
telephone/NN
conversations/NNS
with/IN
representatives/NNS
of/IN
Mitsubishi/NNP
Bank/NNP
,/,
one/CD
of/IN
the/DT
Japanese/JJ
banks/NNS
that/WDT
was/VBD
considering/VBG
participating/VBG
in/IN
the/DT
financing/NN
./.
In/IN
those/DT
conversations/NNS
,/,
he/PRP
reiterated/VBD
the/DT
union/NN
's/POS
position/NN
that/IN
it/PRP
would/MD
seek/VB
significant/JJ
wage/NN
increases/NNS
in/IN
the/DT
round/NN
of/IN
contract/NN
talks/NNS
set/VBN
to/TO
begin/VB
next/JJ
month/NN
./.
The/DT
Japanese/JJ
banks/NNS
,/,
however/RB
,/,
were/VBD
n't/RB
the/DT
only/JJ
ones/NNS
worried/JJ
./.
At/IN
First/NNP
Chicago/NNP
,/,
executives/NNS
were/VBD
sharply/RB
divided/VBN
on/IN
whether/IN
the/DT
bank/NN
should/MD
participate/VB
--/:
and/CC
what/WP
consequences/NNS
there/EX
would/MD
be/VB
if/IN
it/PRP
rejected/VBD
its/PRP$
longtime/JJ
client/NN
./.
Among/IN
other/JJ
things/NNS
,/,
the/DT
bank/NN
feared/VBD
``/``
we/PRP
'd/MD
look/VB
like/IN
dogs/NNS
''/''
if/IN
United/NNP
was/VBD
able/JJ
to/TO
piece/VB
together/RB
the/DT
financing/NN
and/CC
First/NNP
Chicago/NNP
was/VBD
absent/JJ
,/,
a/DT
top/JJ
lending/NN
officer/NN
said/VBD
./.
United/NNP
's/POS
Mr./NNP
Pope/NNP
was/VBD
warning/VBG
that/IN
just/RB
that/DT
could/MD
happen/VB
./.
``/``
Pope/NNP
told/VBD
us/PRP
there/EX
's/VBZ
no/DT
question/NN
the/DT
banks/NNS
are/VBP
going/VBG
to/TO
sign/VB
up/RP
./.
''/''
As/IN
the/DT
Thursday/NNP
afternoon/NN
deadline/NN
for/IN
banks/NNS
neared/VBD
,/,
some/DT
lending/NN
officers/NNS
at/IN
First/NNP
Chicago/NNP
remained/VBD
in/IN
favor/NN
of/IN
joining/VBG
the/DT
financing/NN
group/NN
,/,
but/CC
the/DT
bank/NN
's/POS
``/``
credit/NN
police/NNS
''/''
were/VBD
opposed/VBN
,/,
citing/VBG
the/DT
high/JJ
degree/NN
of/IN
risk/NN
associated/VBN
with/IN
the/DT
loan/NN
./.
A/DT
vote/NN
of/IN
top/JJ
officers/NNS
,/,
including/VBG
Chairman/NNP
Barry/NNP
F./NNP
Sullivan/NNP
,/,
Thursday/NNP
morning/NN
was/VBD
strongly/RB
against/IN
the/DT
loan/NN
./.
One/CD
official/NN
close/JJ
to/TO
the/DT
transaction/NN
said/VBD
banks/NNS
were/VBD
worried/VBN
about/IN
the/DT
amount/NN
of/IN
assets/NNS
the/DT
buy-out/NN
group/NN
had/VBD
to/TO
cover/VB
the/DT
loans/NNS
./.
He/PRP
said/VBD
in/IN
the/DT
NWA/NNP
Inc./NNP
acquisition/NN
,/,
banks/NNS
were/VBD
secured/VBN
with/IN
well/RB
over/IN
$/$
1/CD
in/IN
assets/NNS
for/IN
every/DT
$/$
1/CD
of/IN
loan/NN
exposure/NN
./.
In/IN
the/DT
UAL/NNP
transaction/NN
,/,
however/RB
,/,
a/DT
banker/NN
's/POS
loans/NNS
would/MD
have/VB
been/VBN
secured/VBN
with/IN
less/JJR
than/IN
$/$
1/CD
in/IN
assets/NNS
for/IN
every/DT
dollar/NN
of/IN
loans/NNS
./.
Another/DT
problem/NN
:/:
The/DT
buy-out/NN
group/NN
's/POS
financial/JJ
projections/NNS
did/VBD
n't/RB
assume/VB
any/DT
type/NN
of/IN
recession/NN
in/IN
the/DT
near/JJ
future/NN
./.
For/IN
instance/NN
,/,
the/DT
group/NN
projected/VBD
that/DT
revenue/NN
would/MD
increase/VB
nearly/RB
10/CD
%/NN
annually/RB
over/IN
the/DT
next/JJ
few/JJ
years/NNS
./.
It/PRP
estimated/VBD
that/IN
yields/NNS
--/:
the/DT
amount/NN
of/IN
income/NN
the/DT
airline/NN
takes/VBZ
in/RP
on/IN
ticket/NN
sales/NNS
--/:
would/MD
increase/VB
an/DT
average/NN
of/IN
3.5/CD
%/NN
a/DT
year/NN
,/,
despite/IN
the/DT
ups/NNS
and/CC
downs/NNS
the/DT
industry/NN
has/VBZ
suffered/VBN
in/IN
the/DT
last/JJ
10/CD
years/NNS
./.
The/DT
projections/NNS
also/RB
assumed/VBD
that/IN
load/NN
factors/NNS
--/:
the/DT
number/NN
of/IN
seats/NNS
filled/VBN
per/IN
aircraft/NN
--/:
would/MD
remain/VB
a/DT
stable/JJ
66.7/CD
%/NN
or/CC
thereabouts/RB
,/,
even/RB
though/IN
domestic/JJ
travel/NN
has/VBZ
been/VBN
weakening/VBG
./.
According/VBG
to/TO
a/DT
machinists/NNS
union/NN
analysis/NN
of/IN
the/DT
transaction/NN
that/WDT
will/MD
be/VB
presented/VBN
to/TO
the/DT
Department/NNP
of/IN
Transportation/NNP
and/CC
a/DT
House/NNP
Aviation/NNP
subcommittee/NN
later/RBR
this/DT
week/NN
,/,
a/DT
``/``
mild/JJ
recession/NN
''/''
would/MD
result/VB
in/IN
the/DT
company/NN
's/POS
taking/VBG
in/IN
$/$
3.5/CD
billion/CD
less/JJR
cash/NN
in/IN
the/DT
next/JJ
four/CD
years/NNS
than/IN
forecast/VBN
by/IN
the/DT
buy-out/NN
group/NN
./.
Clearly/RB
,/,
any/DT
new/JJ
bid/NN
will/MD
have/VB
to/TO
include/VB
more/JJR
profit/NN
for/IN
lenders/NNS
and/CC
that/WDT
probably/RB
means/VBZ
less/JJR
cash/NN
for/IN
UAL/NNP
shareholders/NNS
,/,
including/VBG
the/DT
heavily/RB
stock-optioned/JJ
Messrs./NNP
Wolf/NNP
and/CC
Pope/NNP
./.
Citicorp/NNP
,/,
the/DT
lead/NN
bank/NN
on/IN
the/DT
financing/NN
proposal/NN
,/,
meanwhile/RB
,/,
has/VBZ
a/DT
resounding/JJ
flop/NN
on/IN
its/PRP$
hands/NNS
./.
It/PRP
agreed/VBD
to/TO
put/VB
up/RP
$/$
2/CD
billion/CD
itself/PRP
,/,
while/IN
co-lead/JJ
Chase/NNP
Manhattan/NNP
agreed/VBD
to/TO
provide/VB
$/$
1/CD
billion/CD
./.
The/DT
two/CD
New/NNP
York/NNP
banks/NNS
have/VBP
already/RB
been/VBN
paid/VBN
combined/VBN
fees/NNS
of/IN
$/$
8/CD
million/CD
for/IN
the/DT
commitments/NNS
./.
Citicorp/NNP
and/CC
Chase/NNP
told/VBD
the/DT
buy-out/NN
group/NN
they/PRP
were/VBD
``/``
highly/RB
confident/JJ
''/''
they/PRP
could/MD
raise/VB
the/DT
remaining/JJ
$/$
4.2/CD
billion/CD
needed/VBN
to/TO
finance/VB
the/DT
deal/NN
./.
The/DT
$/$
7.2/CD
billion/CD
the/DT
banks/NNS
said/VBD
they/PRP
needed/VBD
includes/VBZ
some/DT
refinancing/NN
of/IN
existing/VBG
debt/NN
,/,
and/CC
is/VBZ
therefore/RB
greater/JJR
than/IN
the/DT
$/$
6.79/CD
billion/CD
offered/VBD
for/IN
UAL/NNP
./.
Citibank/NNP
's/POS
confidence/NN
was/VBD
bolstered/VBN
as/RB
recently/RB
as/IN
10/CD
days/NNS
ago/RB
when/WRB
representatives/NNS
of/IN
120/CD
banks/NNS
that/WDT
had/VBD
expressed/VBN
interest/NN
in/IN
the/DT
UAL/NNP
transaction/NN
attended/VBD
a/DT
meeting/NN
with/IN
Citibank/NNP
representatives/NNS
./.
``/``
Ninety/CD
percent/NN
of/IN
the/DT
questions/NNS
asked/VBN
were/VBD
friendly/JJ
,/,
''/''
said/VBD
a/DT
person/NN
who/WP
attended/VBD
./.
``/``
There/EX
were/VBD
a/DT
lot/NN
of/IN
indications/NNS
both/DT
before/IN
and/CC
after/IN
that/IN
this/DT
was/VBD
a/DT
deal/NN
people/NNS
thought/VBD
well/RB
of/IN
./.
''/''
But/CC
Citibank/NNP
's/POS
confidence/NN
may/MD
also/RB
have/VB
bordered/VBN
on/IN
arrogance/NN
,/,
other/JJ
bankers/NNS
contend/VBP
./.
The/DT
recent/JJ
buy-out/NN
financing/NN
of/IN
NWA/NNP
,/,
Northwest/NNP
Airlines/NNP
'/POS
parent/NN
,/,
for/IN
instance/NN
,/,
was/VBD
a/DT
much/RB
more/RBR
collaborative/JJ
effort/NN
among/IN
several/JJ
U.S./NNP
banks/NNS
./.
It/PRP
was/VBD
a/DT
far/RB
safer/JJR
deal/NN
for/IN
lenders/NNS
,/,
since/IN
NWA/NNP
had/VBD
a/DT
healthier/JJR
cash/NN
flow/NN
and/CC
more/JJR
collateral/NN
on/IN
hand/NN
./.
And/CC
banks/NNS
'/POS
fees/NNS
were/VBD
much/RB
higher/JJR
as/IN
well/RB
./.
No/DT
wonder/NN
,/,
then/RB
,/,
that/IN
lenders/NNS
lined/VBD
up/RP
to/TO
participate/VB
./.
``/``
Perhaps/RB
lenders/NNS
are/VBP
finally/RB
recognizing/VBG
that/IN
the/DT
stream/NN
of/IN
airline/NN
cash/NN
flow/NN
may/MD
be/VB
less/RBR
predictable/JJ
and/CC
a/DT
higher/JJR
risk/NN
than/IN
previously/RB
considered/VBN
,/,
''/''
said/VBD
Karen/NNP
Firestone/NNP
,/,
a/DT
money/NN
manager/NN
at/IN
Fidelity/NNP
Investments/NNP
in/IN
Boston/NNP
./.
Ms./NNP
Firestone/NNP
added/VBD
,/,
``/``
In/IN
the/DT
same/JJ
week/NN
that/DT
USAir/NNP
announces/VBZ
they/PRP
might/MD
lose/VB
money/NN
in/IN
the/DT
quarter/NN
,/,
United/NNP
is/VBZ
trying/VBG
to/TO
get/VB
money/NN
for/IN
a/DT
$/$
300-a-share/JJ
buy-out/NN
./.
It/PRP
's/VBZ
kind/NN
of/IN
like/IN
,/,
what/WP
's/VBZ
wrong/JJ
with/IN
this/DT
picture/NN
?/.
''/''
According/VBG
to/TO
bankers/NNS
and/CC
others/NNS
familiar/JJ
with/IN
the/DT
financing/NN
proposal/NN
,/,
several/JJ
things/NNS
need/VBP
to/TO
be/VB
fixed/VBN
:/:
Fees/NNS
paid/VBN
to/TO
the/DT
banks/NNS
,/,
set/VBN
at/IN
about/RB
1.5/CD
%/NN
of/IN
loans/NNS
,/,
are/VBP
low/JJ
compared/VBN
with/IN
other/JJ
buy-outs/NNS
,/,
which/WDT
have/VBP
paid/VBN
2/CD
%/NN
to/TO
2.5/CD
%/NN
./.
Because/IN
buy-out/NN
loans/NNS
often/RB
get/VB
refinanced/VBN
--/:
and/CC
thus/RB
paid/VBD
off/RP
--/:
ahead/RB
of/IN
schedule/NN
,/,
banks/NNS
ca/MD
n't/RB
count/VB
on/IN
years/NNS
of/IN
interest/NN
income/NN
from/IN
these/DT
loans/NNS
./.
They/PRP
like/VBP
deals/NNS
to/TO
be/VB
``/``
front-loaded/JJ
''/''
with/IN
fees/NNS
./.
What/WP
's/VBZ
more/JJR
,/,
fees/NNS
in/IN
the/DT
UAL/NNP
proposal/NN
were/VBD
n't/RB
structured/VBN
to/TO
encourage/VB
banks/NNS
to/TO
commit/VB
to/TO
lending/VBG
large/JJ
amounts/NNS
of/IN
money/NN
./.
The/DT
interest/NN
rate/NN
promised/VBD
the/DT
banks/NNS
was/VBD
also/RB
relatively/RB
low/JJ
;/:
2/CD
%/NN
over/IN
the/DT
rate/NN
banks/NNS
charge/VBP
each/DT
other/JJ
in/IN
London/NNP
,/,
known/VBN
as/IN
LIBOR/NNP
./.
And/CC
bankers/NNS
were/VBD
concerned/VBN
that/IN
there/EX
were/VBD
n't/RB
any/DT
junk/NN
bondholders/NNS
or/CC
other/JJ
buyers/NNS
of/IN
subordinated/VBN
debt/NN
standing/VBG
between/IN
potential/JJ
losses/NNS
and/CC
the/DT
banks/NNS
'/POS
senior/JJ
loans/NNS
./.
``/``
Most/JJS
of/IN
these/DT
leveraged/VBN
deals/NNS
have/VBP
been/VBN
done/VBN
with/IN
a/DT
pretty/JJ
heavy/JJ
layer/NN
of/IN
junk/NN
,/,
''/''
a/DT
First/NNP
Chicago/NNP
executive/NN
said/VBD
./.
``/``
This/DT
one/CD
has/VBZ
zippo/NN
./.
''/''
Because/IN
the/DT
junk/NN
bond/NN
market/NN
has/VBZ
ground/VBN
to/TO
a/DT
halt/NN
since/IN
Campeau/NNP
's/POS
problems/NNS
were/VBD
made/VBN
manifest/JJ
,/,
so-called/JJ
bridge/NN
loans/NNS
from/IN
Wall/NNP
Street/NNP
firms/NNS
or/CC
other/JJ
sources/NNS
could/MD
be/VB
used/VBN
for/IN
subordinated/VBN
debt/NN
in/IN
the/DT
UAL/NNP
deal/NN
./.
In/IN
the/DT
meantime/NN
,/,
though/RB
,/,
airline/NN
executives/NNS
,/,
union/NN
officials/NNS
,/,
lawyers/NNS
,/,
investment/NN
bankers/NNS
and/CC
even/RB
the/DT
machinists/NNS
will/MD
have/VB
one/CD
eye/NN
on/IN
United/NNP
and/CC
one/CD
eye/NN
on/IN
the/DT
stock/NN
market/NN
they/PRP
helped/VBD
to/TO
tank/VB
./.
Says/VBZ
an/DT
official/NN
working/VBG
on/IN
the/DT
buy-out/NN
:/:
``/``
As/IN
time/NN
goes/VBZ
by/RB
,/,
you/PRP
have/VBP
to/TO
get/VB
more/RBR
worried/VBN
./.
''/''
Randall/NNP
Smith/NNP
and/CC
Michael/NNP
R./NNP
Sesit/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
The/DT
dollar/NN
's/POS
fall/NN
on/IN
Friday/NNP
could/MD
signal/VB
a/DT
new/JJ
bout/NN
of/IN
weakness/NN
for/IN
the/DT
U.S./NNP
currency/NN
and/CC
--/:
if/IN
it/PRP
declines/VBZ
much/RB
further/RBR
--/:
possibly/RB
the/DT
end/NN
of/IN
the/DT
U.S./NNP
currency/NN
's/POS
long-term/JJ
climb/NN
that/WDT
began/VBD
in/IN
early/JJ
1988/CD
./.
``/``
The/DT
entire/JJ
sentiment/NN
has/VBZ
changed/VBN
;/:
the/DT
dollar/NN
bulls/NNS
definitely/RB
have/VBP
been/VBN
shaken/VBN
,/,
''/''
says/VBZ
Jack/NNP
Kessler/NNP
,/,
senior/JJ
vice/NN
president/NN
in/IN
charge/NN
of/IN
New/NNP
York/NNP
foreign-exchange/JJ
operations/NNS
for/IN
Chase/NNP
Manhattan/NNP
Bank/NNP
./.
He/PRP
and/CC
others/NNS
cite/VBP
Friday/NNP
's/POS
plunge/NN
in/IN
U.S./NNP
stock/NN
prices/NNS
and/CC
the/DT
narrowing/VBG
difference/NN
between/IN
interest/NN
rates/NNS
in/IN
the/DT
U.S./NNP
and/CC
some/DT
of/IN
its/PRP$
major/JJ
trading/NN
partners/NNS
,/,
particularly/RB
West/NNP
Germany/NNP
and/CC
Japan/NNP
./.
Many/JJ
analysts/NNS
also/RB
suspect/VBP
that/IN
the/DT
Federal/NNP
Reserve/NNP
has/VBZ
begun/VBN
to/TO
reduce/VB
interest/NN
rates/NNS
and/CC
could/MD
go/VB
further/RBR
./.
Lower/JJR
interest/NN
rates/NNS
usually/RB
diminish/VBP
a/DT
currency/NN
's/POS
appeal/NN
to/TO
international/JJ
investors/NNS
and/CC
speculators/NNS
./.
By/IN
very/RB
late/RB
in/IN
New/NNP
York/NNP
on/IN
Friday/NNP
,/,
the/DT
dollar/NN
had/VBD
tumbled/VBN
to/TO
1.8655/CD
West/JJ
German/JJ
marks/NNS
and/CC
141.50/CD
yen/NNS
--/:
its/PRP$
lows/NNS
for/IN
the/DT
day/NN
--/:
from/IN
1.9083/CD
marks/NNS
and/CC
144.17/CD
yen/NNS
on/IN
Thursday/NNP
./.
The/DT
British/JJ
pound/NN
rose/VBD
to/TO
$/$
1.5840/CD
from/IN
$/$
1.5523/CD
a/DT
day/NN
earlier/RBR
./.
In/IN
Tokyo/NNP
Monday/NNP
,/,
the/DT
dollar/NN
opened/VBD
for/IN
trading/NN
at/IN
139.30/CD
yen/NNS
,/,
down/RB
from/IN
Friday/NNP
's/POS
Tokyo/NNP
close/NN
of/IN
144/CD
yen/NNS
,/,
and/CC
1.8340/CD
marks/NNS
down/RB
from/IN
Friday/NNP
's/POS
close/NN
of/IN
1.8720/CD
./.
By/IN
late/JJ
morning/NN
,/,
the/DT
dollar/NN
had/VBD
recovered/VBN
somewhat/RB
and/CC
was/VBD
trading/VBG
at/IN
140.90/CD
yen/NNS
and/CC
1.8535/CD
marks/NNS
./.
``/``
If/IN
the/DT
stock/NN
market/NN
keeps/VBZ
going/VBG
down/RB
on/IN
Monday/NNP
,/,
you/PRP
're/VBP
going/VBG
to/TO
see/VB
a/DT
lot/NN
of/IN
people/NNS
selling/VBG
dollars/NNS
,/,
''/''
says/VBZ
Robert/NNP
Fio/NNP
Rito/NNP
,/,
a/DT
trader/NN
at/IN
Harris/NNP
Trust/NNP
&/CC
Savings/NNP
Bank/NNP
in/IN
Chicago/NNP
./.
He/PRP
added/VBD
:/:
``/``
The/DT
mark/NN
is/VBZ
a/DT
good/JJ
place/NN
to/TO
be/VB
./.
''/''
In/IN
the/DT
short-run/NN
,/,
the/DT
dollar/NN
's/POS
fate/NN
depends/VBZ
largely/RB
on/IN
the/DT
performance/NN
of/IN
the/DT
U.S./NNP
stock/NN
market/NN
today/NN
as/RB
well/RB
as/IN
the/DT
Fed/NNP
's/POS
and/CC
other/JJ
central/JJ
banks/NNS
'/POS
reaction/NN
to/TO
what/WP
happens/VBZ
in/IN
all/DT
world/NN
equity/NN
markets/NNS
,/,
say/VBP
traders/NNS
and/CC
analysts/NNS
./.
Not/RB
only/RB
does/VBZ
the/DT
dollar/NN
play/VB
a/DT
key/JJ
role/NN
in/IN
determining/VBG
the/DT
direction/NN
and/CC
health/NN
of/IN
the/DT
U.S./NNP
economy/NN
,/,
but/CC
the/DT
speed/NN
with/IN
which/WDT
it/PRP
rises/VBZ
or/CC
falls/VBZ
is/VBZ
also/RB
of/IN
major/JJ
concern/NN
to/TO
U.S./NNP
and/CC
foreign/JJ
policy/NN
makers/NNS
./.
A/DT
precipitous/JJ
fall/NN
by/IN
the/DT
dollar/NN
could/MD
reignite/NN
U.S./NNP
inflationary/JJ
pressures/NNS
by/IN
raising/VBG
the/DT
price/NN
of/IN
imports/NNS
and/CC
prompting/VBG
U.S./NNP
manufacturers/NNS
to/TO
increase/VB
domestic/JJ
prices/NNS
./.
But/CC
if/IN
the/DT
U.S./NNP
currency/NN
were/VB
to/TO
decline/VB
in/IN
a/DT
controlled/VBN
manner/NN
,/,
it/PRP
would/MD
contribute/VB
to/TO
the/DT
four-year/JJ
effort/NN
by/IN
the/DT
U.S./NNP
and/CC
its/PRP$
major/JJ
trading/NN
partners/NNS
to/TO
reduce/VB
the/DT
U.S./NNP
trade/NN
deficit/NN
and/CC
correspondingly/RB
large/JJ
Japanese/JJ
and/CC
West/JJ
German/JJ
surpluses/NNS
./.
That/DT
's/VBZ
because/IN
a/DT
weaker/JJR
dollar/NN
makes/VBZ
U.S./NNP
exports/NNS
less/RBR
expensive/JJ
while/IN
raising/VBG
the/DT
price/NN
of/IN
imports/NNS
to/TO
American/JJ
consumers/NNS
./.
Furthermore/RB
,/,
in/IN
the/DT
current/JJ
stock/NN
market/NN
climate/NN
,/,
the/DT
dollar/NN
is/VBZ
the/DT
wire/NN
through/IN
which/WDT
foreigners/NNS
telegraph/VBP
their/PRP$
preference/NN
--/:
or/CC
distaste/NN
--/:
for/IN
U.S./NNP
securities/NNS
and/CC
signal/VBP
their/PRP$
confidence/NN
in/IN
the/DT
American/JJ
economy/NN
and/CC
financial/JJ
system/NN
./.
If/IN
foreigners/NNS
dump/VBP
U.S./NNP
stocks/NNS
and/CC
return/VBP
to/TO
the/DT
safety/NN
of/IN
their/PRP$
home/NN
markets/NNS
--/:
as/IN
they/PRP
did/VBD
in/IN
October/NNP
1987/CD
--/:
they/PRP
must/MD
simultaneously/RB
also/RB
sell/VB
dollars/NNS
for/IN
their/PRP$
own/JJ
currencies/NNS
./.
Those/DT
transactions/NNS
,/,
in/IN
turn/NN
,/,
could/MD
weaken/VB
the/DT
dollar/NN
./.
Even/RB
if/IN
foreigners/NNS
just/RB
withhold/VBP
from/IN
buying/VBG
additional/JJ
U.S./NNP
securities/NNS
,/,
they/PRP
reduce/VBP
the/DT
demand/NN
for/IN
dollars/NNS
./.
Conversely/RB
,/,
when/WRB
foreigners/NNS
buy/VBP
American/JJ
securities/NNS
,/,
they/PRP
increase/VBP
the/DT
demand/NN
for/IN
the/DT
U.S./NNP
currency/NN
./.
However/RB
,/,
foreigners/NNS
who/WP
merely/RB
sell/VBP
their/PRP$
American/JJ
shares/NNS
and/CC
buy/VBP
U.S./NNP
bonds/NNS
do/VBP
n't/RB
affect/VB
the/DT
exchange/NN
rate/NN
./.
Initially/RB
on/IN
Friday/NNP
,/,
the/DT
dollar/NN
shot/VBD
up/RB
in/IN
early/JJ
New/NNP
York/NNP
activity/NN
after/IN
both/DT
the/DT
producer/NN
price/NN
index/NN
and/CC
retail/JJ
sales/NNS
for/IN
September/NNP
came/VBD
out/RP
higher/RBR
than/IN
most/JJS
analysts/NNS
expected/VBD
./.
Traders/NNS
concluded/VBD
that/IN
U.S./NNP
interest/NN
rates/NNS
would/MD
remain/VB
firm/JJ
,/,
and/CC
the/DT
dollar/NN
quickly/RB
climbed/VBD
to/TO
its/PRP$
intraday/JJ
highs/NNS
of/IN
1.9140/CD
marks/NNS
and/CC
144.80/CD
yen/NNS
./.
But/CC
the/DT
rally/NN
quickly/RB
fizzled/VBD
under/IN
the/DT
weight/NN
of/IN
trader/NN
chagrin/NN
that/IN
the/DT
currency/NN
had/VBD
n't/RB
risen/VBN
further/RBR
,/,
profit-taking/NN
and/CC
unconfirmed/JJ
reports/NNS
that/IN
the/DT
Fed/NNP
was/VBD
selling/VBG
dollars/NNS
./.
A/DT
few/JJ
hours/NNS
later/RBR
with/IN
the/DT
dollar/NN
trading/VBG
at/IN
1.8895/CD
marks/NNS
and/CC
143/CD
yen/NNS
,/,
the/DT
stock/NN
market/NN
began/VBD
plunging/VBG
,/,
taking/VBG
the/DT
U.S./NNP
currency/NN
with/IN
it/PRP
./.
Surprisingly/RB
,/,
while/IN
trading/NN
was/VBD
hectic/JJ
,/,
dealers/NNS
say/VBP
that/IN
volume/NN
was/VBD
unexpectedly/RB
moderate/JJ
./.
``/``
You/PRP
're/VBP
talking/VBG
about/IN
a/DT
really/RB
thin/JJ
and/CC
volatile/JJ
Friday/NNP
the/DT
13th/JJ
,/,
''/''
says/VBZ
Carmine/NNP
Rotondo/NNP
,/,
chief/JJ
corporate/JJ
dealer/NN
for/IN
Security/NNP
Pacific/NNP
National/NNP
Bank/NNP
./.
``/``
The/DT
decline/NN
of/IN
the/DT
dollar/NN
was/VBD
more/RBR
a/DT
function/NN
of/IN
market/NN
makers/NNS
dragging/VBG
bids/NNS
down/RB
than/IN
people/NNS
massively/RB
selling/VBG
,/,
''/''
adds/VBZ
Richard/NNP
Witten/NNP
,/,
vice/NN
president/NN
in/IN
charge/NN
of/IN
foreign-exchange/JJ
operations/NNS
at/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
./.
From/IN
its/PRP$
intraday/JJ
highs/NNS
four/CD
weeks/NNS
ago/RB
,/,
the/DT
U.S./NNP
currency/NN
has/VBZ
fallen/VBN
almost/RB
7/CD
%/NN
against/IN
the/DT
mark/NN
and/CC
5/CD
%/NN
against/IN
the/DT
yen/NN
./.
In/IN
Friday/NNP
's/POS
trading/NN
alone/RB
the/DT
dollar/NN
fell/VBD
more/RBR
than/IN
2.5/CD
%/NN
against/IN
the/DT
mark/NN
and/CC
2.3/CD
%/NN
against/IN
the/DT
yen/NN
from/IN
its/PRP$
high/JJ
in/IN
early/JJ
New/NNP
York/NNP
trading/NN
./.
Currently/RB
,/,
the/DT
dollar/NN
stands/VBZ
close/RB
to/TO
the/DT
upper/JJ
limits/NNS
of/IN
its/PRP$
so-called/JJ
Louvre/NNP
trading/NN
ranges/NNS
of/IN
1.70-to-1.90/CD
marks/NNS
and/CC
120-140/CD
yen/NNS
,/,
within/IN
which/WDT
most/JJS
traders/NNS
and/CC
economists/NNS
believe/VBP
the/DT
Group/NNP
of/IN
Seven/CD
major/JJ
industrial/JJ
countries/NNS
have/VBP
tried/VBN
to/TO
keep/VB
it/PRP
since/IN
February/NNP
1987/CD
./.
The/DT
G-7/NNP
includes/VBZ
the/DT
U.S./NNP
,/,
Japan/NNP
,/,
West/NNP
Germany/NNP
,/,
France/NNP
,/,
Britain/NNP
,/,
Italy/NNP
and/CC
Canada/NNP
./.
``/``
For/IN
all/DT
of/IN
its/PRP$
unfortunate/JJ
aspects/NNS
,/,
Friday/NNP
's/POS
events/NNS
make/VBP
it/PRP
easier/JJR
for/IN
the/DT
G-7/CD
process/NN
to/TO
continue/VB
,/,
''/''
says/VBZ
Robert/NNP
Feldman/NNP
,/,
an/DT
international/JJ
economist/NN
at/IN
Salomon/NNP
Brothers/NNP
Inc/NNP
./.
He/PRP
added/VBD
:/:
``/``
Until/NNP
Friday/NNP
morning/NN
,/,
market/NN
people/NNS
were/VBD
contending/VBG
that/IN
further/JJ
interest-rate/NN
hikes/NNS
were/VBD
necessary/JJ
to/TO
keep/VB
the/DT
dollar/NN
bulls/NNS
from/IN
running/VBG
over/IN
{/(
the/DT
central/NN
banks/NNS
there/EX
seemed/VBD
to/TO
be/VB
a/DT
sense/NN
of/IN
the/DT
dollar/NN
bulls/NNS
coming/VBG
back/RB
and/CC
taking/VBG
control/NN
again/RB
./.
''/''
In/IN
the/DT
past/JJ
week/NN
and/CC
a/DT
half/NN
,/,
major/JJ
European/JJ
countries/NNS
--/:
led/VBN
by/IN
West/NNP
Germany/NNP
and/CC
Japan/NNP
--/:
raised/VBD
official/JJ
domestic/JJ
interest/NN
rates/NNS
,/,
mostly/RB
to/TO
keep/VB
their/PRP$
currencies/NNS
from/IN
falling/VBG
further/RBR
and/CC
to/TO
stem/VB
the/DT
inflationary/JJ
impact/NN
of/IN
those/DT
declines/NNS
./.
Mr./NNP
Feldman/NNP
added/VBD
:/:
``/``
But/CC
that/DT
's/VBZ
not/RB
the/DT
way/NN
things/NNS
look/VBP
now/RB
;/:
the/DT
G-7/CD
have/VBP
some/DT
breathing/NN
room/NN
./.
''/''
Analysts/NNS
say/VBP
that/IN
the/DT
dollar/NN
's/POS
future/NN
depends/VBZ
on/IN
whether/IN
U.S./NNP
stock/NN
prices/NNS
keep/VBP
falling/VBG
;/:
whether/IN
the/DT
Fed/NNP
is/VBZ
forced/VBN
to/TO
ease/VB
credit/NN
to/TO
ease/VB
any/DT
crisis/NN
;/:
whether/IN
foreign/JJ
equity/NN
markets/NNS
also/RB
fall/VBP
,/,
and/CC
how/WRB
central/JJ
banks/NNS
abroad/RB
react/VBP
to/TO
those/DT
circumstances/NNS
./.
Many/JJ
dealers/NNS
are/VBP
betting/VBG
that/IN
the/DT
Fed/NNP
will/MD
have/VB
to/TO
ease/VB
monetary/JJ
policy/NN
,/,
if/IN
it/PRP
has/VBZ
n't/RB
already/RB
./.
The/DT
questions/NNS
are/VBP
how/WRB
much/JJ
and/CC
under/IN
what/WP
circumstances/NNS
./.
``/``
If/IN
nothing/NN
happens/VBZ
abroad/RB
and/CC
the/DT
Fed/NNP
is/VBZ
forced/VBN
to/TO
ease/VB
here/RB
to/TO
calm/VB
markets/NNS
,/,
the/DT
dollar/NN
is/VBZ
going/VBG
to/TO
go/VB
down/RB
;/:
there/EX
would/MD
be/VB
a/DT
flight/NN
to/TO
quality/NN
as/IN
people/NNS
start/VBP
to/TO
worry/VB
about/IN
the/DT
U.S./NNP
financial/JJ
system/NN
,/,
''/''
says/VBZ
Michael/NNP
D./NNP
Andrews/NNP
,/,
a/DT
vice/NN
president/NN
at/IN
Merrill/NNP
Lynch/NNP
&/CC
Co/NNP
./.
The/DT
dollar/NN
,/,
he/PRP
adds/VBZ
,/,
``/``
could/MD
take/VB
a/DT
pretty/RB
big/JJ
hit/NN
,/,
''/''
if/IN
the/DT
Fed/NNP
were/VBD
perceived/VBN
as/IN
``/``
being/VBG
in/IN
a/DT
very/RB
difficult/JJ
situation/NN
where/WRB
it/PRP
was/VBD
fighting/VBG
a/DT
fire/NN
./.
''/''
In/IN
fact/NN
,/,
Mr./NNP
Andrews/NNP
and/CC
some/DT
other/JJ
traders/NNS
and/CC
analysts/NNS
say/VBP
that/IN
it/PRP
is/VBZ
n't/RB
impossible/JJ
to/TO
paint/VB
a/DT
scenario/NN
where/WRB
the/DT
Fed/NNP
might/MD
have/VB
to/TO
intervene/VB
to/TO
support/VB
the/DT
dollar/NN
./.
Analysts/NNS
believe/VBP
that/IN
the/DT
Fed/NNP
can/MD
tolerate/VB
a/DT
dollar/NN
as/RB
low/RB
as/IN
1.80/CD
marks/NNS
,/,
a/DT
level/NN
at/IN
which/WDT
U.S./NNP
companies/NNS
are/VBP
competitive/JJ
in/IN
overseas/JJ
markets/NNS
and/CC
yet/RB
is/VBZ
n't/RB
too/RB
inflationary/JJ
domestically/RB
./.
Much/JJ
depends/VBZ
on/IN
how/WRB
foreigners/NNS
react/VBP
./.
If/IN
they/PRP
merely/RB
sell/VBP
American/JJ
shares/NNS
and/CC
buy/VBP
U.S./NNP
bonds/NNS
,/,
that/WDT
wo/MD
n't/RB
affect/VB
the/DT
dollar/NN
./.
But/CC
if/IN
,/,
as/IN
in/IN
October/NNP
1987/CD
,/,
they/PRP
dump/VBP
dollar-denominated/JJ
securities/NNS
and/CC
run/VBP
to/TO
foreign/JJ
markets/NNS
,/,
they/PRP
will/MD
increase/VB
pressure/NN
on/IN
the/DT
dollar/NN
to/TO
fall/VB
./.
Some/DT
of/IN
that/WDT
already/RB
began/VBD
on/IN
Friday/NNP
./.
``/``
Many/DT
of/IN
the/DT
banks/NNS
in/IN
the/DT
U.S./NNP
called/VBD
their/PRP$
counterparts/NNS
in/IN
the/DT
Far/NNP
East/NNP
and/CC
Europe/NNP
,/,
''/''
says/VBZ
Chase/NNP
Manhattan/NNP
's/POS
Mr./NNP
Kessler/NNP
./.
``/``
And/CC
dealers/NNS
who/WP
had/VBD
gone/VBN
home/NN
in/IN
the/DT
Far/NNP
East/NNP
and/CC
Europe/NNP
long/JJ
dollars/NNS
started/VBD
selling/VBG
when/WRB
they/PRP
were/VBD
awakened/VBN
during/IN
the/DT
night/NN
and/CC
told/VBD
that/IN
the/DT
stock/NN
market/NN
was/VBD
down/RB
,/,
that/IN
Fed/NNP
funds/NNS
were/VBD
at/IN
8/CD
3\/4/CD
%/NN
and/CC
that/IN
the/DT
Fed/NNP
might/MD
begin/VB
to/TO
ease/VB
,/,
''/''
Mr./NNP
Kessler/NNP
adds/VBZ
./.
Salomon/NNP
Brothers/NNP
'/POS
Mr./NNP
Feldman/NNP
says/VBZ
that/IN
further/JJ
evidence/NN
of/IN
foreign/JJ
selling/NN
was/VBD
the/DT
dollar/NN
's/POS
plunge/NN
Friday/NNP
at/IN
the/DT
same/JJ
time/NN
the/DT
bond/NN
market/NN
was/VBD
rallying/VBG
--/:
which/WDT
has/VBZ
n't/RB
occurred/VBD
in/IN
months/NNS
./.
``/``
That/DT
may/MD
be/VB
a/DT
signal/NN
of/IN
a/DT
turning/NN
point/NN
in/IN
the/DT
strategies/NNS
of/IN
international/JJ
portfolio/NN
managers/NNS
,/,
''/''
he/PRP
says/VBZ
./.
Harris/NNP
Trust/NNP
's/POS
Mr./NNP
Fio/NNP
Rito/NNP
predicts/VBZ
that/IN
``/``
an/DT
equity/NN
market/NN
hit/NN
will/MD
trigger/VB
further/JJ
liquidation/NN
;/:
with/IN
the/DT
Japanese/NNS
and/CC
Germans/NNS
raising/VBG
{/(
interest/NN
rates/NNS
,/,
the/DT
fundamentals/NNS
changed/VBN
for/IN
the/DT
dollar/NN
./.
''/''
Indeed/RB
,/,
Salomon/NNP
's/POS
Mr./NNP
Feldman/NNP
notes/VBZ
that/IN
in/IN
September/NNP
yields/NNS
on/IN
three-month/JJ
Eurodollar/JJ
deposits/NNS
were/VBD
1.5/CD
percentage/NN
points/NNS
more/JJR
than/IN
on/IN
three-month/JJ
marks/NNS
./.
By/IN
late/JJ
Friday/NNP
,/,
that/WDT
spread/VBD
had/VBD
narrowed/VBN
to/TO
0.19/CD
percentage/NN
point/NN
./.
``/``
People/NNS
began/VBD
to/TO
question/VB
shifting/VBG
{/(
funds/NNS
differences/NNS
this/DT
small/JJ
,/,
''/''
he/PRP
adds/VBZ
./.
Many/JJ
dealers/NNS
are/VBP
looking/VBG
to/TO
see/VB
if/IN
the/DT
dollar/NN
tumbles/VBZ
below/IN
1.85/CD
marks/NNS
,/,
a/DT
key/JJ
psychological/JJ
and/CC
technical/JJ
level/NN
to/TO
the/DT
many/JJ
traders/NNS
who/WP
use/VBP
charts/NNS
to/TO
predict/VB
currency/NN
movements/NNS
./.
``/``
It/PRP
breaks/VBZ
through/IN
1.85/CD
,/,
then/RB
you/PRP
begin/VBP
to/TO
question/VB
whether/IN
the/DT
dollar/NN
's/POS
long-term/JJ
uptrend/NN
that/WDT
began/VBD
in/IN
early/RB
1988/CD
is/VBZ
still/RB
in/IN
place/NN
,/,
''/''
says/VBZ
Merrill/NNP
Lynch/NNP
's/POS
Mr./NNP
Andrews/NNP
./.
The/DT
dollar/NN
is/VBZ
n't/RB
without/IN
its/PRP$
boosters/NNS
,/,
who/WP
point/VBP
to/TO
reduced/VBN
U.S./NNP
budget/NN
and/CC
trade/NN
deficits/NNS
as/RB
well/RB
as/IN
its/PRP$
value/NN
as/IN
a/DT
so-called/JJ
haven/NN
currency/NN
in/IN
a/DT
world/NN
rife/JJ
with/IN
political/JJ
instability/NN
./.
``/``
I/PRP
see/VBP
a/DT
stronger/JJR
dollar/NN
mid/JJ
to/TO
long-term/NN
,/,
''/''
says/VBZ
Gilles/NNP
Bazy-Sire/NNP
,/,
a/DT
first/JJ
vice/NN
president/NN
at/IN
Societe/NNP
Generale/NNP
Securities/NNP
Corp./NNP
in/IN
New/NNP
York/NNP
./.
He/PRP
says/VBZ
that/IN
based/VBN
on/IN
the/DT
price/NN
of/IN
a/DT
similar/JJ
basket/NN
of/IN
goods/NNS
and/CC
services/NNS
in/IN
major/JJ
industrial/JJ
countries/NNS
,/,
the/DT
dollar/NN
currently/RB
``/``
is/VBZ
very/RB
cheap/JJ
./.
''/''
That/DT
,/,
he/PRP
says/VBZ
,/,
``/``
should/MD
increase/VB
the/DT
demand/NN
for/IN
dollars/NNS
''/''
by/IN
investors/NNS
who/WP
want/VBP
to/TO
buy/VB
real/JJ
U.S./NNP
assets/NNS
,/,
such/JJ
as/IN
real/JJ
estate/NN
and/CC
companies/NNS
./.
Dollar/NN
doubters/NNS
point/VBP
to/TO
the/DT
prospects/NNS
of/IN
a/DT
bumpy/JJ
U.S./NNP
stock/NN
market/NN
at/IN
best/JJS
,/,
and/CC
the/DT
prospect/NN
of/IN
lower/JJR
U.S./NNP
interest/NN
rates/NNS
./.
What/WP
's/VBZ
more/JJR
,/,
many/JJ
forecasters/NNS
predict/VBP
that/IN
the/DT
U.S./NNP
trade/NN
deficit/NN
will/MD
begin/VB
to/TO
widen/VB
again/RB
in/IN
1990/CD
./.
In/IN
fact/NN
,/,
many/JJ
analysts/NNS
estimate/VBP
that/IN
the/DT
trade/NN
gap/NN
for/IN
August/NNP
--/:
to/TO
be/VB
released/VBN
tomorrow/NN
--/:
widened/VBD
to/TO
as/RB
much/JJ
as/IN
$/$
9.6/CD
billion/CD
from/IN
$/$
7.6/CD
billion/CD
the/DT
previous/JJ
month/NN
./.
Barring/VBG
a/DT
catastrophe/NN
in/IN
the/DT
U.S./NNP
stock/NN
market/NN
,/,
Mr./NNP
Kessler/NNP
believes/VBZ
that/IN
the/DT
dollar/NN
in/IN
the/DT
near/JJ
term/NN
should/MD
weaken/VB
further/RBR
to/TO
about/RB
1.8650-1.8850/CD
marks/NNS
and/CC
142-143.50/CD
yen/NNS
./.
But/CC
he/PRP
adds/VBZ
:/:
``/``
My/PRP$
gut/NN
feeling/NN
is/VBZ
that/IN
we/PRP
can/MD
even/RB
see/VB
it/PRP
go/VB
lower/RBR
./.
''/''
On/IN
the/DT
Commodity/NNP
Exchange/NNP
in/IN
New/NNP
York/NNP
Friday/NNP
,/,
gold/NN
for/IN
current/JJ
delivery/NN
settled/VBD
at/IN
$/$
363.30/CD
an/DT
ounce/NN
,/,
down/RB
10/CD
cents/NNS
./.
Estimated/VBN
volume/NN
was/VBD
a/DT
light/JJ
two/CD
million/CD
ounces/NNS
./.
In/IN
early/RB
trading/NN
in/IN
Hong/NNP
Kong/NNP
Monday/NNP
,/,
gold/NN
was/VBD
quoted/VBN
at/IN
about/RB
$/$
368.27/CD
an/DT
ounce/NN
,/,
up/RB
$/$
2.81/CD
an/DT
ounce/NN
from/IN
Saturday/NNP
's/POS
close/NN
of/IN
$/$
365.46/CD
./.
ARBITRAGE/NN
:/:
Technically/RB
,/,
the/DT
simultaneous/JJ
buying/NN
and/CC
selling/NN
of/IN
related/VBN
securities/NNS
to/TO
take/VB
advantage/NN
of/IN
small/JJ
differences/NNS
in/IN
price/NN
./.
The/DT
term/NN
has/VBZ
come/VBN
to/TO
be/VB
applied/VBN
to/TO
buying/VBG
stocks/NNS
in/IN
companies/NNS
that/WDT
are/VBP
,/,
or/CC
are/VBP
rumored/VBN
to/TO
be/VB
,/,
takeover/NN
targets/NNS
./.
INDEX/NN
ARBITRAGE/NN
:/:
The/DT
simultaneous/JJ
trading/NN
in/IN
stock-index/JJ
markets/NNS
and/CC
the/DT
underlying/VBG
groups/NNS
of/IN
stocks/NNS
to/TO
take/VB
advantage/NN
of/IN
temporary/JJ
discrepancies/NNS
in/IN
prices/NNS
./.
JUNK/NN
BONDS/NNS
:/:
High-yielding/JJ
,/,
high-risk/JJ
debt/NN
securities/NNS
rated/VBN
double-B/JJ
or/CC
lower/JJR
by/IN
the/DT
credit-rating/JJ
agencies/NNS
./.
LEVERAGED/VBN
BUY-OUT/NN
:/:
The/DT
purchase/NN
of/IN
a/DT
company/NN
by/IN
a/DT
small/JJ
group/NN
of/IN
investors/NNS
financed/VBN
largely/RB
by/IN
debt/NN
,/,
often/RB
junk/NN
bonds/NNS
./.
MARGIN/NN
CALL/NN
:/:
A/DT
demand/NN
upon/IN
an/DT
investor/NN
to/TO
put/VB
up/RP
more/JJR
collateral/NN
for/IN
securities/NNS
bought/VBN
on/IN
credit/NN
./.
The/DT
lender/NN
,/,
usually/RB
a/DT
bank/NN
or/CC
brokerage/NN
firm/NN
,/,
makes/VBZ
the/DT
call/NN
when/WRB
the/DT
equity/NN
in/IN
the/DT
investor/NN
's/POS
account/NN
falls/VBZ
below/IN
a/DT
standard/NN
set/VBN
by/IN
a/DT
stock/NN
exchange/NN
or/CC
firm/NN
./.
OPTIONS/NNS
:/:
A/DT
``/``
put/VBN
''/''
option/NN
permits/VBZ
a/DT
holder/NN
to/TO
sell/VB
a/DT
stock/NN
at/IN
a/DT
specified/VBN
price/NN
within/IN
a/DT
limited/VBN
period/NN
./.
A/DT
``/``
call/NN
''/''
option/NN
permits/VBZ
an/DT
investor/NN
to/TO
buy/VB
stock/NN
at/IN
a/DT
specified/VBN
price/NN
within/IN
a/DT
limited/VBN
period/NN
./.
An/DT
index/NN
option/NN
lets/VBZ
the/DT
investor/NN
buy/VB
or/CC
sell/VB
the/DT
``/``
basket/NN
''/''
of/IN
stocks/NNS
represented/VBN
by/IN
a/DT
stock-market/NN
index/NN
./.
PORTFOLIO/NN
INSURANCE/NN
:/:
A/DT
method/NN
of/IN
hedging/VBG
a/DT
stock/NN
portfolio/NN
,/,
usually/RB
by/IN
selling/VBG
futures/NNS
contracts/NNS
on/IN
stock/NN
indexes/NNS
when/WRB
the/DT
market/NN
falls/VBZ
./.
STOCK-INDEX/NN
FUTURES/NNS
:/:
Contracts/NNS
for/IN
future/JJ
delivery/NN
of/IN
an/DT
amount/NN
of/IN
cash/NN
based/VBN
on/IN
an/DT
index/NN
of/IN
stock/NN
prices/NNS
,/,
such/JJ
as/IN
the/DT
Standard/NNP
&/CC
Poor/NNP
's/POS
500/CD
index/NN
or/CC
the/DT
Major/NNP
Market/NNP
Index/NNP
./.
A/DT
trader/NN
buying/VBG
a/DT
December/NNP
S&P/NNP
500/CD
stock-index/JJ
futures/NNS
contract/NN
at/IN
a/DT
price/NN
of/IN
$/$
200/CD
today/NN
,/,
for/IN
instance/NN
,/,
would/MD
be/VB
agreeing/VBG
to/TO
take/VB
delivery/NN
next/JJ
month/NN
of/IN
500/CD
times/NNS
that/WDT
amount/VBP
in/IN
cash/NN
,/,
or/CC
$/$
100,000/CD
./.
Traders/NNS
would/MD
almost/RB
always/RB
close/VB
out/RP
that/DT
position/NN
by/IN
selling/VBG
an/DT
offsetting/VBG
futures/NNS
contract/NN
./.
If/IN
the/DT
stock/NN
market/NN
--/:
and/CC
correspondingly/RB
the/DT
stock/NN
index/NN
--/:
rose/VBD
before/IN
the/DT
trader/NN
closed/VBD
out/RP
his/PRP$
position/NN
,/,
he/PRP
would/MD
make/VB
a/DT
profit/NN
because/IN
he/PRP
could/MD
sell/VB
an/DT
offsetting/VBG
contract/NN
at/IN
a/DT
higher/JJR
price/NN
,/,
taking/VBG
in/IN
more/JJR
money/NN
than/IN
he/PRP
had/VBD
to/TO
spend/VB
./.
If/IN
the/DT
market/NN
fell/VBD
,/,
the/DT
trader/NN
would/MD
lose/VB
money/NN
because/IN
he/PRP
would/MD
have/VB
to/TO
sell/VB
an/DT
offsetting/VBG
contract/NN
at/IN
a/DT
lower/JJR
price/NN
./.
Futures/NNS
are/VBP
used/VBN
to/TO
hedge/VB
against/IN
fluctuations/NNS
in/IN
stock/NN
prices/NNS
or/CC
to/TO
speculate/VB
on/IN
market/NN
moves/NNS
./.
The/DT
Major/NNP
Market/NNP
Index/NNP
encompasses/VBZ
20/CD
blue-chip/JJ
stocks/NNS
,/,
including/VBG
17/CD
that/WDT
are/VBP
also/RB
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
./.
Futures/NNS
on/IN
the/DT
MMI/NNP
are/VBP
traded/VBN
on/IN
the/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
./.
Options/NNS
on/IN
the/DT
index/NN
are/VBP
traded/VBN
on/IN
the/DT
American/JJ
Stock/NNP
Exchange/NNP
./.
)/)
``/``
Circuit-breaker/JJ
''/''
trading/NN
halts/NNS
on/IN
this/DT
city/NN
's/POS
futures/NNS
and/CC
options/NNS
exchanges/NNS
may/MD
have/VB
speeded/VBD
the/DT
stock/NN
market/NN
's/POS
fall/NN
on/IN
Friday/NNP
./.
Stock-index/JJ
futures/NNS
trading/NN
on/IN
the/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
and/CC
stock-index/JJ
options/NNS
trading/NN
on/IN
the/DT
Chicago/NNP
Board/NNP
Options/NNP
Exchange/NNP
initially/RB
closed/VBD
within/IN
a/DT
few/JJ
minutes/NNS
of/IN
each/DT
other/JJ
Friday/NNP
afternoon/NN
./.
But/CC
trading/NN
in/IN
the/DT
nation/NN
's/VBZ
most/RBS
active/JJ
stock-index/JJ
option/NN
on/IN
the/DT
CBOE/NNP
did/VBD
n't/RB
reopen/VB
for/IN
the/DT
day/NN
./.
As/IN
a/DT
result/NN
,/,
options/NNS
traders/NNS
were/VBD
forced/VBN
to/TO
sell/VB
elsewhere/RB
,/,
driving/VBG
futures/NNS
and/CC
stock/NN
prices/NNS
lower/RBR
,/,
traders/NNS
said/VBD
./.
And/CC
when/WRB
trading/NN
in/IN
the/DT
Chicago/NNP
Merc/NNP
's/POS
stock-index/JJ
futures/NNS
had/VBD
finally/RB
halted/VBN
for/IN
the/DT
day/NN
as/IN
well/RB
,/,
sell/NN
orders/NNS
cascaded/VBD
onto/IN
the/DT
floor/NN
of/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
adding/VBG
to/TO
the/DT
rout/NN
./.
What/WP
's/VBZ
more/JJR
,/,
in/IN
anticipation/NN
of/IN
the/DT
trading/NN
halts/NNS
many/JJ
traders/NNS
--/:
worried/VBN
about/IN
being/VBG
unable/JJ
to/TO
trade/VB
at/IN
lower/JJR
prices/NNS
--/:
sold/VBN
futures/NNS
and/CC
options/NNS
contracts/NNS
,/,
thereby/RB
knocking/VBG
prices/NNS
still/RB
lower/RBR
./.
The/DT
wildly/RB
fluctuating/VBG
markets/NNS
appeared/VBD
to/TO
have/VB
claimed/VBN
at/IN
least/JJS
one/CD
victim/NN
./.
Fossett/NNP
Corp./NNP
,/,
an/DT
options-trading/JJ
firm/NN
,/,
said/VBD
last/JJ
night/NN
that/IN
it/PRP
is/VBZ
transferring/VBG
all/DT
of/IN
its/PRP$
customer/NN
accounts/NNS
to/TO
First/NNP
Options/NNP
of/IN
Chicago/NNP
./.
Stephen/NNP
Fossett/NNP
,/,
president/NN
and/CC
sole/JJ
owner/NN
of/IN
the/DT
company/NN
,/,
said/VBD
that/IN
he/PRP
was/VBD
making/VBG
the/DT
transfers/NNS
as/IN
a/DT
result/NN
of/IN
a/DT
substantial/JJ
cash/NN
squeeze/NN
stemming/VBG
from/IN
numerous/JJ
calls/NNS
for/IN
cash/NN
and/CC
margin/NN
money/NN
on/IN
Friday/NNP
by/IN
several/JJ
stock-option/JJ
and/CC
futures/NNS
exchanges/NNS
./.
``/``
All/DT
of/IN
our/PRP$
obligations/NNS
were/VBD
met/VBN
,/,
''/''
Mr./NNP
Fossett/NNP
said/VBD
./.
Although/IN
few/JJ
other/JJ
trading/NN
firms/NNS
here/RB
or/CC
in/IN
New/NNP
York/NNP
appeared/VBD
to/TO
be/VB
in/IN
immediate/JJ
financial/JJ
difficulty/NN
,/,
Friday/NNP
's/POS
volatility/NN
also/RB
underscored/VBD
the/DT
need/NN
for/IN
exchanges/NNS
in/IN
Chicago/NNP
to/TO
hasten/VB
the/DT
common/JJ
clearing/NN
of/IN
futures/NNS
and/CC
options/NNS
contracts/NNS
,/,
traders/NNS
said/VBD
./.
``/``
I/PRP
'm/VBP
very/RB
disappointed/VBN
./.
The/DT
trading/NN
halts/NNS
in/IN
futures/NNS
and/CC
options/NNS
may/MD
have/VB
done/VBN
more/JJR
harm/NN
than/IN
good/NN
,/,
''/''
said/VBD
Jeffrey/NNP
Tabak/NNP
,/,
a/DT
partner/NN
in/IN
the/DT
investment/NN
firm/NN
of/IN
Miller/NNP
Tabak/NNP
Hirsch/NNP
&/CC
Co./NNP
,/,
and/CC
a/DT
member/NN
of/IN
the/DT
presidential/JJ
commission/NN
that/WDT
recommended/VBD
intermarket/JJ
circuit/NN
breakers/NNS
be/VB
adopted/VBN
./.
The/DT
situation/NN
``/``
is/VBZ
clearly/RB
uncorrected/JJ
,/,
''/''
said/VBD
Glenn/NNP
W./NNP
Clark/NNP
,/,
a/DT
Washington/NNP
,/,
D.C./NNP
,/,
author/NN
on/IN
the/DT
futures/NNS
markets/NNS
./.
``/``
All/DT
a/DT
trading/NN
halt/NN
the/DT
movement/NN
./.
''/''
The/DT
stock-index/JJ
futures/NNS
and/CC
options/NNS
also/RB
are/VBP
likely/JJ
to/TO
weigh/VB
heavily/RB
on/IN
the/DT
stock/NN
market/NN
this/DT
morning/NN
./.
The/DT
S&P/NNP
500/CD
index/NN
future/NN
that/WDT
expires/VBZ
in/IN
December/NNP
closed/VBD
at/IN
328.85/CD
,/,
nearly/RB
five/CD
index/NN
points/NNS
below/IN
the/DT
333.65/CD
closing/NN
price/NN
of/IN
the/DT
S&P/NNP
500/CD
index/NN
itself/PRP
,/,
which/WDT
is/VBZ
based/VBN
on/IN
the/DT
value/NN
of/IN
the/DT
500/CD
stocks/NNS
in/IN
the/DT
index/NN
./.
The/DT
wide/JJ
discount/NN
of/IN
the/DT
index/NN
futures/NNS
price/NN
against/IN
the/DT
actual/JJ
index/NN
may/MD
tempt/VB
program/NN
traders/NNS
,/,
who/WP
profit/VBP
from/IN
price/NN
discrepancies/NNS
between/IN
stocks/NNS
and/CC
futures/NNS
,/,
to/TO
buy/VB
the/DT
relatively/RB
cheap/JJ
futures/NNS
and/CC
sell/VB
stocks/NNS
,/,
sending/VBG
the/DT
stock/NN
market/NN
still/RB
lower/RBR
./.
That/DT
selling/NN
could/MD
pull/VB
futures/NNS
prices/NNS
lower/RBR
as/IN
well/RB
,/,
triggering/VBG
another/DT
round/NN
of/IN
program/NN
selling/NN
./.
Traders/NNS
emphasized/VBD
,/,
however/RB
,/,
that/IN
the/DT
price/NN
relationship/NN
between/IN
stocks/NNS
and/CC
futures/NNS
could/MD
change/VB
substantially/RB
by/IN
this/DT
morning/NN
's/POS
start/NN
of/IN
trading/NN
,/,
based/VBN
on/IN
trading/NN
overnight/RB
in/IN
Japan/NNP
,/,
an/DT
influx/NN
of/IN
new/JJ
orders/NNS
or/CC
other/JJ
events/NNS
./.
Trading/NN
first/RB
halted/VBD
in/IN
the/DT
Standard/NNP
&/CC
Poor/NNP
's/POS
500-stock/JJ
index/NN
futures/NNS
contract/NN
on/IN
the/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
at/IN
2:07/CD
p.m./NN
CST/NNP
,/,
after/IN
the/DT
contract/NN
had/VBD
fallen/VBN
12/CD
index/NN
points/NNS
./.
It/PRP
reopened/VBD
at/IN
2:30/CD
p.m./NN
,/,
but/CC
traded/VBD
freely/RB
for/IN
only/RB
15/CD
minutes/NNS
before/IN
hitting/VBG
its/PRP$
daily/JJ
limit/NN
of/IN
30/CD
points/NNS
below/IN
the/DT
previous/JJ
day/NN
's/POS
close/NN
./.
Sporadic/JJ
trading/NN
occurred/VBD
at/IN
that/DT
level/NN
for/IN
the/DT
next/JJ
half-hour/NN
until/IN
the/DT
contract/NN
's/POS
normal/JJ
closing/NN
time/NN
of/IN
3:15/CD
p.m/NN
./.
The/DT
trading/NN
halts/NNS
'/POS
main/JJ
effect/NN
,/,
as/IN
designed/VBN
,/,
was/VBD
to/TO
permit/VB
the/DT
stock/NN
market/NN
to/TO
catch/VB
up/RP
with/IN
the/DT
futures/NNS
markets/NNS
./.
When/WRB
the/DT
Merc/NNP
imposed/VBD
its/PRP$
first/JJ
halt/NN
in/IN
the/DT
S&P/NN
500/CD
futures/NNS
contract/NN
after/IN
the/DT
12-point/JJ
drop/NN
,/,
the/DT
stock/NN
index/NN
on/IN
which/WDT
the/DT
contract/NN
is/VBZ
based/VBN
went/VBD
down/RB
from/IN
eight/CD
points/NNS
to/TO
13/CD
points/NNS
,/,
roughly/RB
in/IN
line/NN
with/IN
the/DT
futures/NNS
contract/NN
./.
But/CC
conflicting/VBG
steps/NNS
by/IN
some/DT
Chicago/NNP
exchanges/NNS
caused/VBD
consternation/NN
among/IN
traders/NNS
./.
Chicago/NNP
Board/NNP
Options/NNP
Exchange/NNP
officials/NNS
,/,
for/IN
instance/NN
,/,
halted/VBD
trading/NN
in/IN
their/PRP$
S&P/NNP
100-stock/JJ
index/NN
option/NN
contract/NN
,/,
as/IN
expected/VBN
,/,
shortly/RB
after/IN
the/DT
Merc/NNP
imposed/VBD
its/PRP$
initial/JJ
trading/NN
halt/NN
./.
The/DT
CBOE/NNP
decided/VBD
not/RB
to/TO
reopen/VB
the/DT
nation/NN
's/POS
largest/JJS
stock-index/JJ
option/NN
market/NN
after/IN
the/DT
S&P/NNP
500/CD
index/NN
contract/NN
reopened/VBD
and/CC
halted/VBD
again/RB
a/DT
short/JJ
time/NN
later/RBR
./.
The/DT
CBOE/NNP
said/VBD
in/IN
a/DT
statement/NN
that/IN
``/``
the/DT
interests/NNS
of/IN
fair/JJ
and/CC
orderly/JJ
markets/NNS
would/MD
n't/RB
be/VB
served/VBN
by/IN
a/DT
resumption/NN
of/IN
trading/NN
./.
''/''
But/CC
some/DT
options/NNS
traders/NNS
said/VBD
they/PRP
were/VBD
furious/JJ
that/IN
they/PRP
had/VBD
been/VBN
denied/VBN
a/DT
chance/NN
to/TO
trade/VB
while/IN
other/JJ
markets/NNS
were/VBD
open/JJ
./.
The/DT
CBOE/NNP
action/NN
also/RB
may/MD
have/VB
driven/VBN
prices/NNS
lower/RBR
in/IN
the/DT
Chicago/NNP
Merc/NNP
's/POS
huge/JJ
S&P/NNP
500/CD
index/NN
futures/NNS
pit/NN
,/,
traders/NNS
said/VBD
./.
As/RB
much/JJ
as/IN
25/CD
%/NN
of/IN
the/DT
volume/NN
in/IN
S&P/NNP
500/CD
futures/NNS
on/IN
most/JJS
days/NNS
comes/VBZ
from/IN
CBOE/NNP
traders/NNS
hedging/VBG
their/PRP$
risks/NNS
in/IN
the/DT
options/NNS
markets/NNS
./.
With/IN
their/PRP$
own/JJ
market/NN
closed/VBN
late/JJ
Friday/NNP
,/,
some/DT
options/NNS
traders/NNS
deluged/VBD
the/DT
S&P/NNP
500/CD
futures/NNS
pit/NN
with/IN
sell/NN
orders/NNS
to/TO
hedge/VB
their/PRP$
frozen/VBN
options/NNS
positions/NNS
,/,
traders/NNS
said/VBD
./.
As/IN
a/DT
result/NN
,/,
one/CD
of/IN
the/DT
largest/JJS
options-trading/JJ
firms/NNS
in/IN
the/DT
country/NN
offered/VBD
to/TO
sell/VB
1,000/CD
S&P/NNP
500/CD
contracts/NNS
at/IN
the/DT
limit/NN
of/IN
30/CD
index/NN
points/NNS
below/IN
the/DT
previous/JJ
day/NN
's/POS
close/NN
,/,
an/DT
S&P/NNP
500/CD
futures/NNS
trader/NN
said/VBD
./.
That/DT
offer/NN
and/CC
others/NNS
like/IN
it/PRP
killed/VBD
any/DT
chance/NN
of/IN
a/DT
late/JJ
rally/NN
and/CC
drove/VBD
down/RB
stock-index/JJ
futures/NNS
prices/NNS
to/TO
the/DT
daily/JJ
limit/NN
,/,
the/DT
trader/NN
added/VBD
./.
With/IN
the/DT
Chicago/NNP
markets/NNS
closed/VBN
,/,
traders/NNS
were/VBD
left/VBN
with/IN
no/DT
choice/NN
but/CC
to/TO
``/``
bang/VB
the/DT
bids/NNS
stocks/NNS
New/NNP
York/NNP
,/,
''/''
Mr./NNP
Tabak/NNP
said/VBD
./.
The/DT
Major/NNP
Market/NNP
Index/NNP
futures/NNS
contract/NN
on/IN
the/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
,/,
traded/VBD
much/RB
less/RBR
actively/RB
,/,
touched/VBD
its/PRP$
daily/JJ
limit/NN
of/IN
50/CD
points/NNS
below/IN
the/DT
previous/JJ
day/NN
's/POS
close/NN
several/JJ
times/NNS
Friday/NNP
,/,
but/CC
bounced/VBD
back/RB
slightly/RB
and/CC
never/RB
halted/VBD
trading/NN
./.
To/TO
provide/VB
an/DT
added/VBN
cash/NN
cushion/NN
to/TO
compensate/VB
for/IN
the/DT
increased/VBN
price/NN
volatility/NN
in/IN
their/PRP$
markets/NNS
,/,
the/DT
Chicago/NNP
Merc/NNP
required/VBD
traders/NNS
to/TO
increase/VB
the/DT
margin/NN
,/,
or/CC
amount/NN
of/IN
cash/NN
they/PRP
put/VBD
up/RP
to/TO
trade/VB
S&P/NN
500/CD
contracts/NNS
,/,
by/IN
one-third/JJ
to/TO
$/$
12,000/CD
a/DT
contract/NN
from/IN
$/$
9,000/CD
,/,
effective/JJ
this/DT
morning/NN
./.
The/DT
Board/NNP
of/IN
Trade/NNP
doubled/VBD
margin/NN
requirements/NNS
for/IN
the/DT
Major/NNP
Market/NNP
Index/NNP
futures/NNS
to/TO
$/$
8,000/CD
a/DT
contract/NN
./.
Officials/NNS
of/IN
the/DT
exchanges/NNS
said/VBD
they/PRP
communicated/VBD
well/RB
with/IN
each/DT
other/JJ
and/CC
with/IN
government/NN
regulators/NNS
during/IN
Fri/NNP
day/NN
's/POS
sell-off/NN
,/,
compared/VBN
with/IN
the/DT
sense/NN
of/IN
chaos/NN
that/WDT
prevailed/VBD
at/IN
times/NNS
on/IN
Black/NNP
Monday/NNP
two/CD
years/NNS
ago/RB
./.
But/CC
while/IN
top/JJ
offi/NNS
cials/NNS
are/VBP
talking/VBG
,/,
the/DT
exchange/NN
's/POS
clearing/VBG
arms/NNS
are/VBP
still/RB
largely/RB
in/IN
the/DT
dark/NN
about/IN
the/DT
financial/JJ
risks/NNS
their/PRP$
members/NNS
may/MD
be/VB
exposed/VBN
to/TO
in/IN
other/JJ
markets/NNS
./.
The/DT
Chicago/NNP
Merc/NNP
has/VBZ
begun/VBN
limited/VBN
cross-margining/NN
of/IN
stock-index/JJ
futures/NNS
accounts/NNS
with/IN
the/DT
Options/NNP
Clearing/NNP
Corp./NNP
,/,
which/WDT
processes/VBZ
all/DT
options/NNS
trades/NNS
for/IN
U.S./NNP
exchanges/NNS
./.
But/CC
for/IN
the/DT
most/JJS
part/NN
,/,
stock/NN
,/,
options/NNS
and/CC
futures/NNS
markets/NNS
still/RB
each/DT
have/VBP
different/JJ
clearing/NN
and/CC
margin/NN
systems/NNS
./.
That/DT
means/VBZ
that/IN
brokers/NNS
and/CC
institutions/NNS
trading/VBG
on/IN
several/JJ
exchanges/NNS
face/VBP
different/JJ
cash/NN
requirements/NNS
on/IN
each/DT
,/,
making/VBG
it/PRP
extremely/RB
difficult/JJ
during/IN
a/DT
crisis/NN
for/IN
an/DT
exchange/NN
to/TO
ascertain/VB
a/DT
firm/NN
's/POS
overall/JJ
,/,
or/CC
net/JJ
,/,
financial/JJ
position/NN
./.
Just/RB
such/JJ
a/DT
cash/NN
squeeze/NN
two/CD
years/NNS
ago/RB
,/,
at/IN
a/DT
leading/JJ
Wall/NNP
Street/NNP
firm/NN
that/WDT
was/VBD
facing/VBG
duplicate/JJ
margin/NN
calls/NNS
for/IN
futures/NNS
and/CC
options/NNS
positions/NNS
,/,
led/VBD
several/JJ
studies/NNS
of/IN
the/DT
markets/NNS
to/TO
call/VB
for/IN
the/DT
coordinated/VBN
margining/VBG
of/IN
positions/NNS
in/IN
different/JJ
markets/NNS
./.
Take/VB
$/$
10/CD
out/IN
of/IN
your/PRP$
wallet/NN
./.
That/DT
's/VBZ
how/WRB
much/JJ
the/DT
collapse/NN
of/IN
Lincoln/NNP
Savings/NNP
&/CC
Loan/NNP
will/MD
cost/VB
you/PRP
and/CC
every/DT
other/JJ
American/NNP
./.
Liquidating/VBG
the/DT
Irvine/NNP
,/,
Calif./NNP
,/,
thrift/NN
will/MD
drain/VB
the/DT
federal/JJ
deposit/NN
insurance/NN
fund/NN
by/IN
more/JJR
than/IN
$/$
2.5/CD
billion/CD
,/,
making/VBG
it/PRP
the/DT
largest/JJS
thrift/NN
failure/NN
in/IN
history/NN
./.
Now/RB
,/,
finally/RB
,/,
there/EX
may/MD
be/VB
an/DT
investigation/NN
to/TO
explore/VB
how/WRB
five/CD
senatorial/JJ
shills/NNS
helped/VBD
perpetuate/VB
this/DT
fiscal/JJ
black/JJ
hole/NN
./.
Back/RB
in/IN
June/NNP
,/,
we/PRP
recounted/VBD
how/WRB
five/CD
U.S./NNP
Senators/NNP
--/:
Alan/NNP
Cranston/NNP
of/IN
California/NNP
,/,
Dennis/NNP
DeConcini/NNP
and/CC
John/NNP
McCain/NNP
of/IN
Arizona/NNP
,/,
John/NNP
Glenn/NNP
of/IN
Ohio/NNP
and/CC
Donald/NNP
Riegle/NNP
of/IN
Michigan/NNP
--/:
intervened/VBD
with/IN
regulators/NNS
to/TO
ease/VB
up/RP
on/IN
Lincoln/NNP
,/,
whose/WP$
risk-fraught/JJ
loans/NNS
were/VBD
more/RBR
worthy/JJ
of/IN
a/DT
casino/NN
than/IN
a/DT
federally/RB
insured/VBN
thrift/NN
./.
Last/JJ
Friday/NNP
,/,
Common/NNP
Cause/NNP
,/,
a/DT
political-reform/JJ
lobby/NN
,/,
asked/VBD
for/IN
a/DT
Senate/NNP
Ethics/NNP
Committee/NNP
probe/NN
of/IN
the/DT
five/CD
Senators/NNS
./.
It/PRP
wants/VBZ
both/DT
an/DT
outside/JJ
counsel/NN
to/TO
conduct/VB
the/DT
probe/NN
and/CC
a/DT
parallel/JJ
Justice/NNP
Department/NNP
investigation/NN
,/,
things/NNS
it/PRP
has/VBZ
not/RB
initially/RB
asked/VBD
for/IN
in/IN
previous/JJ
ethics/NNS
cases/NNS
./.
Perhaps/RB
Common/NNP
Cause/NNP
has/VBZ
come/VBN
to/TO
recognize/VB
that/IN
Congress/NNP
is/VBZ
generally/RB
incapable/JJ
of/IN
investigating/VBG
itself/PRP
./.
Charles/NNP
Keating/NNP
Jr./NNP
,/,
the/DT
chairman/NN
of/IN
American/NNP
Continental/NNP
,/,
Lincoln/NNP
's/POS
parent/NN
company/NN
,/,
needed/VBD
the/DT
Senators/NNS
'/POS
help/NN
in/IN
his/PRP$
running/VBG
battle/NN
with/IN
federal/JJ
regulators/NNS
./.
He/PRP
admits/VBZ
he/PRP
made/VBD
large/JJ
contributions/NNS
to/TO
each/DT
of/IN
them/PRP
so/IN
they/PRP
would/MD
``/``
take/VB
up/IN
my/PRP$
cause/NN
./.
''/''
In/IN
one/CD
case/NN
,/,
57/CD
Keating/NNP
executives/NNS
gave/VBD
$/$
66,100/CD
to/TO
Senator/NNP
Riegle/NNP
at/IN
the/DT
same/JJ
March/NNP
1987/CD
fund-raiser/NN
./.
Mr./NNP
Riegle/NNP
later/RBR
returned/VBD
the/DT
money/NN
./.
In/IN
April/NNP
1987/CD
,/,
the/DT
Senators/NNS
,/,
,/,
absent/VB
Mr./NNP
Riegle/NNP
,/,
asked/VBD
to/TO
meet/VB
with/IN
Ed/NNP
Gray/NNP
,/,
then/RB
head/NN
of/IN
the/DT
Federal/NNP
Home/NNP
Loan/NNP
Bank/NNP
Board/NNP
,/,
and/CC
according/VBG
to/TO
Mr./NNP
Gray/NNP
,/,
unsuccessfully/RB
pressed/VBD
him/PRP
to/TO
drop/VB
a/DT
key/JJ
regulation/NN
detrimental/JJ
to/TO
Lincoln/NNP
--/:
``/``
a/DT
clear/JJ
subversion/NN
of/IN
the/DT
regulatory/JJ
process/NN
./.
''/''
Senator/NNP
McCain/NNP
now/RB
calls/VBZ
the/DT
meeting/NN
``/``
improper/JJ
''/''
and/CC
after/IN
several/JJ
previous/JJ
denials/NNS
,/,
Senator/NNP
Cranston/NNP
now/RB
admits/VBZ
the/DT
regulation/NN
probably/RB
came/VBD
up/RP
./.
Days/NNS
later/RBR
,/,
the/DT
four/CD
senators/NNS
--/:
joined/VBN
by/IN
Mr./NNP
Riegle/NNP
--/:
met/VBD
with/IN
other/JJ
regulators/NNS
to/TO
press/VB
Lincoln/NNP
's/POS
case/NN
./.
Senators/NNP
Glenn/NNP
,/,
Riegle/NNP
and/CC
McCain/NNP
apparently/RB
stopped/VBD
doing/VBG
favors/NNS
for/IN
Mr./NNP
Keating/NNP
after/IN
that/DT
,/,
but/CC
Senators/NNP
Cranston/NNP
and/CC
DeConcini/NNP
persisted/VBD
,/,
intervening/VBG
on/IN
behalf/NN
of/IN
Lincoln/NNP
until/IN
just/RB
before/IN
its/PRP$
closure/NN
this/DT
year/NN
./.
It/PRP
now/RB
turns/VBZ
out/RP
that/DT
at/IN
least/JJS
four/CD
of/IN
the/DT
five/CD
Senators/NNS
may/MD
have/VB
been/VBN
indebted/JJ
to/TO
Mr./NNP
Keating/NNP
far/RB
beyond/IN
mere/JJ
campaign/NN
contributions/NNS
:/:
--/:
The/DT
Arizona/NNP
Republic/NNP
reports/VBZ
that/IN
two/CD
of/IN
Senator/NNP
DeConcini/NNP
's/POS
top/JJ
aides/NNS
received/VBD
more/JJR
than/IN
$/$
50/CD
million/CD
in/IN
real-estate/NN
loans/NNS
from/IN
Lincoln/NNP
./.
--/:
Senator/NNP
McCain/NNP
recently/RB
reimbursed/VBD
Mr./NNP
Keating/NNP
for/IN
$/$
13,400/CD
in/IN
previously/RB
unreported/JJ
airplane/NN
trips/NNS
,/,
and/CC
revealed/VBD
that/DT
his/PRP$
wife/NN
and/CC
father-in-law/NN
invested/VBD
$/$
359,100/CD
in/IN
a/DT
Keating/NNP
shopping-center/NN
partnership/NN
in/IN
1986/CD
./.
--/:
Senator/NNP
Cranston/NNP
solicited/VBD
$/$
850,000/CD
in/IN
contributions/NNS
from/IN
Mr./NNP
Keating/NNP
for/IN
three/CD
``/``
nonpartisan/JJ
''/''
voter-registration/JJ
groups/NNS
,/,
which/WDT
some/DT
former/JJ
employees/NNS
now/RB
say/VBP
were/VBD
fronts/NNS
for/IN
the/DT
Democratic/NNP
Party/NNP
./.
--/:
Senator/NNP
Glenn/NNP
solicited/VBD
$/$
200,000/CD
in/IN
contributions/NNS
from/IN
Mr./NNP
Keating/NNP
for/IN
a/DT
political/JJ
committee/NN
he/PRP
controlled/VBN
that/IN
paid/VBD
him/PRP
to/TO
travel/VB
around/IN
the/DT
country/NN
./.
Some/DT
$/$
43,000/CD
was/VBD
used/VBN
for/IN
the/DT
Glenn/NNP
Senate/NNP
campaign/NN
--/:
a/DT
possible/JJ
violation/NN
of/IN
federal/JJ
election/NN
law/NN
./.
The/DT
lack/NN
of/IN
attention/NN
to/TO
the/DT
Keating/NNP
drama/NN
is/VBZ
astonishing/JJ
in/IN
light/NN
of/IN
the/DT
magnitude/NN
of/IN
the/DT
savings-and-loan/NN
disaster/NN
./.
The/DT
S&L/NNP
bailout/NN
promises/VBZ
to/TO
cost/VB
the/DT
taxpayers/NNS
some/DT
$/$
200/CD
billion/CD
,/,
with/IN
Lincoln/NNP
accounting/VBG
for/IN
$/$
2.5/CD
billion/CD
alone/RB
./.
By/IN
contrast/NN
,/,
the/DT
extensively/RB
covered/VBN
HUD/NNP
political/JJ
scandals/NNS
may/MD
cost/VB
the/DT
taxpayers/NNS
$/$
2.0/CD
billion/CD
,/,
the/DT
centerpiece/NN
being/VBG
a/DT
$/$
0.0003/CD
billion/CD
check/NN
to/TO
James/NNP
Watt/NNP
,/,
the/DT
legality/NN
of/IN
which/WDT
seems/VBZ
to/TO
be/VB
uncontested/JJ
./.
Similarly/RB
,/,
the/DT
spate/NN
of/IN
dubious/JJ
prosecutions/NNS
in/IN
finance/NN
obscures/VBZ
the/DT
seriousness/NN
of/IN
the/DT
allegations/NNS
against/IN
Mr./NNP
Keating/NNP
and/CC
his/PRP$
associates/NNS
./.
This/DT
is/VBZ
not/RB
a/DT
matter/NN
of/IN
whispering/VBG
``/``
bunny/NN
./.
''/''
The/DT
160-page/JJ
civil/JJ
suit/NN
filed/VBN
against/IN
Mr./NNP
Keating/NNP
last/JJ
month/NN
by/IN
the/DT
Resolution/NNP
Trust/NNP
Corp./NNP
,/,
the/DT
vehicle/NN
for/IN
the/DT
S&L/NNP
bailout/NN
,/,
traces/VBZ
a/DT
clear/JJ
thread/NN
./.
Money/NN
was/VBD
taken/VBN
into/IN
Lincoln/NNP
,/,
for/IN
example/NN
by/IN
selling/VBG
$/$
250/CD
million/CD
in/IN
uninsured/JJ
debentures/NNS
near/IN
retirement/NN
communities/NNS
,/,
and/CC
allegedly/RB
taken/VBN
out/IN
of/IN
the/DT
parent/NN
company/NN
by/IN
insiders/NNS
,/,
for/IN
example/NN
by/IN
the/DT
sale/NN
of/IN
their/PRP$
personal/JJ
stock/NN
to/TO
the/DT
company/NN
's/POS
employee/NN
stock/NN
ownership/NN
plan/NN
./.
The/DT
case/NN
remains/VBZ
to/TO
be/VB
tested/VBN
in/IN
court/NN
,/,
of/IN
course/NN
,/,
but/CC
if/IN
the/DT
allegations/NNS
hold/VBP
up/RP
the/DT
Senators/NNS
were/VBD
defending/VBG
a/DT
classic/JJ
scam/NN
./.
Common/NNP
Cause/NNP
is/VBZ
n't/RB
the/DT
only/JJ
body/NN
that/WDT
thinks/VBZ
the/DT
Keating/NNP
Five/CD
's/POS
interventions/NNS
deserve/VBP
scrutiny/NN
./.
The/DT
House/NNP
Banking/NNP
Committee/NNP
has/VBZ
voted/VBN
to/TO
subpoena/VB
Mr./NNP
Keating/NNP
and/CC
top/JJ
federal/JJ
regulators/NNS
to/TO
testify/VB
about/IN
Lincoln/NNP
./.
The/DT
hearings/NNS
begin/VBP
tomorrow/NN
,/,
and/CC
will/MD
focus/VB
on/IN
why/WRB
thrift/NN
regulator/NN
M./NNP
Danny/NNP
Wall/NNP
,/,
a/DT
former/JJ
Senate/NNP
staffer/NN
,/,
overruled/VBD
staff/NN
recommendations/NNS
to/TO
close/VB
Lincoln/NNP
and/CC
transferred/VBD
regulatory/JJ
oversight/NN
of/IN
Lincoln/NNP
to/TO
Washington/NNP
./.
Between/IN
April/NNP
,/,
1987/CD
,/,
when/WRB
the/DT
five/CD
senators/NNS
intervened/VBD
,/,
and/CC
April/NNP
,/,
1988/CD
,/,
when/WRB
Lincoln/NNP
was/VBD
finally/RB
closed/VBN
,/,
the/DT
losses/NNS
to/TO
taxpayers/NNS
grew/VBD
by/IN
some/DT
$/$
1.5/CD
billion/CD
./.
It/PRP
was/VBD
Common/NNP
Cause/NNP
's/POS
demand/NN
last/JJ
year/NN
for/IN
a/DT
House/NNP
Ethics/NNP
Committee/NNP
probe/NN
of/IN
Speaker/NNP
Jim/NNP
Wright/NNP
that/WDT
prompted/VBD
the/DT
committee/NN
to/TO
hire/VB
Richard/NNP
Phelan/NNP
as/IN
an/DT
outside/JJ
counsel/NN
./.
Mr./NNP
Phelan/NNP
found/VBD
that/IN
Mr./NNP
Wright/NNP
had/VBD
improperly/RB
intervened/VBN
with/IN
federal/JJ
regulators/NNS
on/IN
behalf/NN
of/IN
S&Ls/NNS
,/,
but/CC
the/DT
Ethics/NNP
Committee/NNP
disagreed/VBD
,/,
saying/VBG
such/JJ
actions/NNS
were/VBD
an/DT
integral/JJ
part/NN
of/IN
a/DT
Member/NNP
's/POS
job/NN
and/CC
it/PRP
could/MD
not/RB
second-guess/VB
``/``
the/DT
technique/NN
and/CC
personality/NN
of/IN
the/DT
legislator/NN
./.
''/''
If/IN
the/DT
Senate/NNP
Ethics/NNP
Committee/NNP
chooses/VBZ
to/TO
investigate/VB
,/,
it/PRP
will/MD
be/VB
interesting/JJ
to/TO
see/VB
if/IN
it/PRP
reaches/VBZ
the/DT
same/JJ
conclusion/NN
in/IN
the/DT
case/NN
of/IN
the/DT
five/CD
Senators/NNS
./.
No/RB
,/,
it/PRP
was/VBD
n't/RB
Black/NNP
Monday/NNP
./.
But/CC
while/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
did/VBD
n't/RB
fall/VB
apart/RB
Friday/NNP
as/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
plunged/VBD
190.58/CD
points/NNS
--/:
most/JJS
of/IN
it/PRP
in/IN
the/DT
final/JJ
hour/NN
--/:
it/PRP
barely/RB
managed/VBD
to/TO
stay/VB
this/DT
side/NN
of/IN
chaos/NN
./.
Some/DT
``/``
circuit/NN
breakers/NNS
''/''
installed/VBN
after/IN
the/DT
October/NNP
1987/CD
crash/NN
failed/VBD
their/PRP$
first/JJ
test/NN
,/,
traders/NNS
say/VBP
,/,
unable/JJ
to/TO
cool/VB
the/DT
selling/NN
panic/NN
in/IN
both/DT
stocks/NNS
and/CC
futures/NNS
./.
The/DT
49/CD
stock/NN
specialist/NN
firms/NNS
on/IN
the/DT
Big/NNP
Board/NNP
floor/NN
--/:
the/DT
buyers/NNS
and/CC
sellers/NNS
of/IN
last/JJ
resort/NN
who/WP
were/VBD
criticized/VBN
after/IN
the/DT
1987/CD
crash/NN
--/:
once/RB
again/RB
could/MD
n't/RB
handle/VB
the/DT
selling/NN
pressure/NN
./.
Big/JJ
investment/NN
banks/NNS
refused/VBD
to/TO
step/VB
up/IN
to/TO
the/DT
plate/NN
to/TO
support/VB
the/DT
beleaguered/JJ
floor/NN
traders/NNS
by/IN
buying/VBG
big/JJ
blocks/NNS
of/IN
stock/NN
,/,
traders/NNS
say/VBP
./.
Heavy/JJ
selling/NN
of/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
500-stock/JJ
index/NN
futures/NNS
in/IN
Chicago/NNP
relentlessly/RB
beat/VBD
stocks/NNS
downward/RB
./.
Seven/CD
Big/NNP
Board/NNP
stocks/NNS
--/:
UAL/NNP
,/,
AMR/NNP
,/,
BankAmerica/NNP
,/,
Walt/NNP
Disney/NNP
,/,
Capital/NNP
Cities\/ABC/NNP
,/,
Philip/NNP
Morris/NNP
and/CC
Pacific/NNP
Telesis/NNP
Group/NNP
--/:
stopped/VBD
trading/VBG
and/CC
never/RB
resumed/VBD
./.
The/DT
finger-pointing/NN
has/VBZ
already/RB
begun/VBN
./.
``/``
The/DT
equity/NN
market/NN
was/VBD
illiquid/JJ
./.
Once/RB
again/RB
{/(
the/DT
specialists/NNS
the/DT
imbalances/NNS
on/IN
the/DT
floor/NN
of/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
''/''
said/VBD
Christopher/NNP
Pedersen/NNP
,/,
senior/JJ
vice/NN
president/NN
at/IN
Twenty-First/NNP
Securities/NNP
Corp/NNP
./.
Countered/VBD
James/NNP
Maguire/NNP
,/,
chairman/NN
of/IN
specialists/NNS
Henderson/NNP
Brothers/NNP
Inc./NNP
:/:
``/``
It/PRP
is/VBZ
easy/JJ
to/TO
say/VB
the/DT
specialist/NN
is/VBZ
n't/RB
doing/VBG
his/PRP$
job/NN
./.
When/WRB
the/DT
dollar/NN
is/VBZ
in/IN
a/DT
free-fall/NN
,/,
even/RB
central/JJ
banks/NNS
ca/MD
n't/RB
stop/VB
it/PRP
./.
Speculators/NNS
are/VBP
calling/VBG
for/IN
a/DT
degree/NN
of/IN
liquidity/NN
that/WDT
is/VBZ
not/RB
there/RB
in/IN
the/DT
market/NN
./.
''/''
Many/JJ
money/NN
managers/NNS
and/CC
some/DT
traders/NNS
had/VBD
already/RB
left/VBN
their/PRP$
offices/NNS
early/RB
Friday/NNP
afternoon/NN
on/IN
a/DT
warm/JJ
autumn/NN
day/NN
--/:
because/IN
the/DT
stock/NN
market/NN
was/VBD
so/RB
quiet/JJ
./.
Then/RB
in/IN
a/DT
lightning/NN
plunge/NN
,/,
the/DT
Dow/NNP
Jones/NNP
industrials/NNS
in/IN
barely/RB
an/DT
hour/NN
surrendered/VBD
about/RB
a/DT
third/JJ
of/IN
their/PRP$
gains/NNS
this/DT
year/NN
,/,
chalking/VBG
up/RP
a/DT
190.58-point/JJ
,/,
or/CC
6.9/CD
%/NN
,/,
loss/NN
on/IN
the/DT
day/NN
in/IN
gargantuan/JJ
trading/NN
volume/NN
./.
Final-hour/JJ
trading/NN
accelerated/VBD
to/TO
108.1/CD
million/CD
shares/NNS
,/,
a/DT
record/NN
for/IN
the/DT
Big/NNP
Board/NNP
./.
At/IN
the/DT
end/NN
of/IN
the/DT
day/NN
,/,
251.2/CD
million/CD
shares/NNS
were/VBD
traded/VBN
./.
The/DT
Dow/NNP
Jones/NNP
industrials/NNS
closed/VBD
at/IN
2569.26/CD
./.
The/DT
Dow/NNP
's/POS
decline/NN
was/VBD
second/JJ
in/IN
point/NN
terms/NNS
only/RB
to/TO
the/DT
508-point/JJ
Black/NNP
Monday/NNP
crash/NN
that/WDT
occurred/VBD
Oct./NNP
19/CD
,/,
1987/CD
./.
In/IN
percentage/NN
terms/NNS
,/,
however/RB
,/,
the/DT
Dow/NNP
's/POS
dive/NN
was/VBD
the/DT
12th-worst/JJ
ever/RB
and/CC
the/DT
sharpest/JJS
since/IN
the/DT
market/NN
fell/VBD
156.83/CD
,/,
or/CC
8/CD
%/NN
,/,
a/DT
week/NN
after/IN
Black/NNP
Monday/NNP
./.
The/DT
Dow/NNP
fell/VBD
22.6/CD
%/NN
on/IN
Black/NNP
Monday/NNP
./.
Shares/NNP
of/IN
UAL/NNP
,/,
the/DT
parent/NN
of/IN
United/NNP
Airlines/NNP
,/,
were/VBD
extremely/RB
active/JJ
all/DT
day/NN
Friday/NNP
,/,
reacting/VBG
to/TO
news/NN
and/CC
rumors/NNS
about/IN
the/DT
proposed/VBN
$/$
6.79/CD
billion/CD
buy-out/NN
of/IN
the/DT
airline/NN
by/IN
an/DT
employee-management/JJ
group/NN
./.
Wall/NNP
Street/NNP
's/POS
takeover-stock/JJ
speculators/NNS
,/,
or/CC
``/``
risk/NN
arbitragers/NNS
,/,
''/''
had/VBD
placed/VBN
unusually/RB
large/JJ
bets/NNS
that/IN
a/DT
takeover/NN
would/MD
succeed/VB
and/CC
UAL/NNP
stock/NN
would/MD
rise/VB
./.
At/IN
2:43/CD
p.m./RB
EDT/NNP
,/,
came/VBD
the/DT
sickening/JJ
news/NN
:/:
The/DT
Big/NNP
Board/NNP
was/VBD
halting/VBG
trading/VBG
in/IN
UAL/NNP
,/,
``/``
pending/VBG
news/NN
./.
''/''
On/IN
the/DT
exchange/NN
floor/NN
,/,
``/``
as/RB
soon/RB
as/IN
UAL/NNP
stopped/VBD
trading/VBG
,/,
we/PRP
braced/VBD
for/IN
a/DT
panic/NN
,/,
''/''
said/VBD
one/CD
top/JJ
floor/NN
trader/NN
./.
Several/JJ
traders/NNS
could/MD
be/VB
seen/VBN
shaking/VBG
their/PRP$
heads/NNS
when/WRB
the/DT
news/NN
flashed/VBD
./.
For/IN
weeks/NNS
,/,
the/DT
market/NN
had/VBD
been/VBN
nervous/JJ
about/IN
takeovers/NNS
,/,
after/IN
Campeau/NNP
Corp./NNP
's/POS
cash/NN
crunch/NN
spurred/VBD
concern/NN
about/IN
the/DT
prospects/NNS
for/IN
future/JJ
highly/RB
leveraged/JJ
takeovers/NNS
./.
And/CC
10/CD
minutes/NNS
after/IN
the/DT
UAL/NNP
trading/NN
halt/NN
came/VBD
news/NN
that/IN
the/DT
UAL/NNP
group/NN
could/MD
n't/RB
get/VB
financing/NN
for/IN
its/PRP$
bid/NN
./.
At/IN
this/DT
point/NN
,/,
the/DT
Dow/NNP
was/VBD
down/RB
about/RB
35/CD
points/NNS
./.
The/DT
market/NN
crumbled/VBD
./.
Arbitragers/NNS
could/MD
n't/RB
dump/VB
their/PRP$
UAL/NNP
stock/NN
--/:
but/CC
they/PRP
rid/VBD
themselves/PRP
of/IN
nearly/RB
every/DT
``/``
rumor/NN
''/''
stock/NN
they/PRP
had/VBD
./.
For/IN
example/NN
,/,
their/PRP$
selling/NN
caused/VBD
trading/NN
halts/NNS
to/TO
be/VB
declared/VBN
in/IN
USAir/NNP
Group/NNP
,/,
which/WDT
closed/VBD
down/RB
3/CD
7\/8/CD
to/TO
41/CD
1\/2/CD
,/,
Delta/NNP
Air/NNP
Lines/NNP
,/,
which/WDT
fell/VBD
7/CD
3\/4/CD
to/TO
69/CD
1\/4/CD
,/,
and/CC
Philips/NNP
Industries/NNP
,/,
which/WDT
sank/VBD
3/CD
to/TO
21/CD
1\/2/CD
./.
These/DT
stocks/NNS
eventually/RB
reopened/VBD
./.
But/CC
as/IN
panic/NN
spread/VBD
,/,
speculators/NNS
began/VBD
to/TO
sell/VB
blue-chip/JJ
stocks/NNS
such/JJ
as/IN
Philip/NNP
Morris/NNP
and/CC
International/NNP
Business/NNP
Machines/NNP
to/TO
offset/VB
their/PRP$
losses/NNS
./.
When/WRB
trading/NN
was/VBD
halted/VBN
in/IN
Philip/NNP
Morris/NNP
,/,
the/DT
stock/NN
was/VBD
trading/VBG
at/IN
41/CD
,/,
down/RB
3/CD
3\/8/CD
,/,
while/IN
IBM/NNP
closed/VBD
5/CD
5\/8/CD
lower/JJR
at/IN
102/CD
./.
Selling/NN
snowballed/VBD
because/IN
of/IN
waves/NNS
of/IN
automatic/JJ
``/``
stop-loss/JJ
''/''
orders/NNS
,/,
which/WDT
are/VBP
triggered/VBN
by/IN
computer/NN
when/WRB
prices/NNS
fall/VBP
to/TO
certain/JJ
levels/NNS
./.
Most/JJS
of/IN
the/DT
stock/NN
selling/NN
pressure/NN
came/VBD
from/IN
Wall/NNP
Street/NNP
professionals/NNS
,/,
including/VBG
computer-guided/JJ
program/NN
traders/NNS
./.
Traders/NNS
said/VBD
most/JJS
of/IN
their/PRP$
major/JJ
institutional/JJ
investors/NNS
,/,
on/IN
the/DT
other/JJ
hand/NN
,/,
sat/VBD
tight/RB
./.
Now/RB
,/,
at/IN
3:07/CD
,/,
one/CD
of/IN
the/DT
market/NN
's/POS
post-crash/JJ
``/``
reforms/NNS
''/''
took/VBD
hold/NN
as/IN
the/DT
S&P/NNP
500/CD
futures/NNS
contract/NN
had/VBD
plunged/VBN
12/CD
points/NNS
,/,
equivalent/JJ
to/TO
around/IN
a/DT
100-point/JJ
drop/NN
in/IN
the/DT
Dow/NNP
industrials/NNS
./.
Under/IN
an/DT
agreement/NN
signed/VBN
by/IN
the/DT
Big/NNP
Board/NNP
and/CC
the/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
,/,
trading/NN
was/VBD
temporarily/RB
halted/VBN
in/IN
Chicago/NNP
./.
After/IN
the/DT
trading/NN
halt/NN
in/IN
the/DT
S&P/NNP
500/CD
pit/NN
in/IN
Chicago/NNP
,/,
waves/NNS
of/IN
selling/NN
continued/VBD
to/TO
hit/VB
stocks/NNS
themselves/PRP
on/IN
the/DT
Big/NNP
Board/NNP
,/,
and/CC
specialists/NNS
continued/VBD
to/TO
notch/VB
prices/NNS
down/RP
./.
As/IN
a/DT
result/NN
,/,
the/DT
link/NN
between/IN
the/DT
futures/NNS
and/CC
stock/NN
markets/NNS
ripped/VBD
apart/RB
./.
Without/IN
the/DT
guidepost/NN
of/IN
stock-index/JJ
futures/NNS
--/:
the/DT
barometer/NN
of/IN
where/WRB
traders/NNS
think/VBP
the/DT
overall/JJ
stock/NN
market/NN
is/VBZ
headed/VBN
--/:
many/JJ
traders/NNS
were/VBD
afraid/JJ
to/TO
trust/VB
stock/NN
prices/NNS
quoted/VBN
on/IN
the/DT
Big/NNP
Board/NNP
./.
The/DT
futures/NNS
halt/NN
was/VBD
even/RB
assailed/VBN
by/IN
Big/NNP
Board/NNP
floor/NN
traders/NNS
./.
``/``
It/PRP
screwed/VBD
things/NNS
up/RP
,/,
''/''
said/VBD
one/CD
major/JJ
specialist/NN
./.
This/DT
confusion/NN
effectively/RB
halted/VBD
one/CD
form/NN
of/IN
program/NN
trading/NN
,/,
stock/NN
index/NN
arbitrage/NN
,/,
that/WDT
closely/RB
links/VBZ
the/DT
futures/NNS
and/CC
stock/NN
markets/NNS
,/,
and/CC
has/VBZ
been/VBN
blamed/VBN
by/IN
some/DT
for/IN
the/DT
market/NN
's/POS
big/JJ
swings/NNS
./.
a/DT
stock-index/JJ
arbitrage/NN
sell/NN
program/NN
,/,
traders/NNS
buy/VBP
or/CC
sell/VBP
big/JJ
baskets/NNS
of/IN
stocks/NNS
and/CC
offset/VBP
the/DT
trade/NN
in/IN
futures/NNS
to/TO
lock/VB
in/RP
a/DT
price/NN
difference/NN
./.
``/``
When/WRB
the/DT
airline/NN
information/NN
came/VBD
through/RP
,/,
it/PRP
cracked/VBD
every/DT
model/NN
we/PRP
had/VBD
for/IN
the/DT
marketplace/NN
,/,
''/''
said/VBD
a/DT
managing/NN
director/NN
at/IN
one/CD
of/IN
the/DT
largest/JJS
program-trading/NN
firms/NNS
./.
``/``
We/PRP
did/VBD
n't/RB
even/RB
get/VB
a/DT
chance/NN
to/TO
do/VB
the/DT
programs/NNS
we/PRP
wanted/VBD
to/TO
do/VB
./.
''/''
But/CC
stocks/NNS
kept/VBD
falling/VBG
./.
The/DT
Dow/NNP
industrials/NNS
were/VBD
down/RB
55/CD
points/NNS
at/IN
3/CD
p.m./RB
before/IN
the/DT
futures-trading/JJ
halt/NN
./.
At/IN
3:30/CD
p.m./RB
,/,
at/IN
the/DT
end/NN
of/IN
the/DT
``/``
cooling/VBG
off/RP
''/''
period/NN
,/,
the/DT
average/NN
was/VBD
down/RB
114.76/CD
points/NNS
./.
Meanwhile/RB
,/,
during/IN
the/DT
the/DT
S&P/NNP
trading/NN
halt/NN
,/,
S&P/NNP
futures/NNS
sell/NN
orders/NNS
began/VBD
piling/VBG
up/RP
,/,
while/IN
stocks/NNS
in/IN
New/NNP
York/NNP
kept/VBD
falling/VBG
sharply/RB
./.
Big/NNP
Board/NNP
Chairman/NNP
John/NNP
J./NNP
Phelan/NNP
said/VBD
yesterday/NN
the/DT
circuit/NN
breaker/NN
``/``
worked/VBD
well/RB
mechanically/RB
./.
I/PRP
just/RB
think/VBP
it/PRP
's/VBZ
nonproductive/JJ
at/IN
this/DT
point/NN
to/TO
get/VB
into/IN
a/DT
debate/NN
if/IN
index/NN
arbitrage/NN
would/MD
have/VB
helped/VBN
or/CC
hurt/VBN
things/NNS
./.
''/''
Under/IN
another/DT
post-crash/JJ
system/NN
,/,
Big/NNP
Board/NNP
President/NNP
Richard/NNP
Grasso/NNP
Mr./NNP
Phelan/NNP
was/VBD
flying/VBG
to/TO
Bangkok/NNP
as/IN
the/DT
market/NN
was/VBD
falling/VBG
)/)
was/VBD
talking/VBG
on/IN
an/DT
``/``
inter-exchange/JJ
hot/JJ
line/NN
''/''
to/TO
the/DT
other/JJ
exchanges/NNS
,/,
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
and/CC
the/DT
Federal/NNP
Reserve/NNP
Board/NNP
./.
He/PRP
camped/VBD
out/RP
at/IN
a/DT
high-tech/JJ
nerve/NN
center/NN
on/IN
the/DT
floor/NN
of/IN
the/DT
Big/NNP
Board/NNP
,/,
where/WRB
he/PRP
could/MD
watch/VB
updates/NNS
on/IN
prices/NNS
and/CC
pending/VBG
stock/NN
orders/NNS
./.
At/IN
about/RB
3:30/CD
p.m./RB
EDT/NNP
,/,
S&P/NNP
futures/NNS
resumed/VBD
trading/VBG
,/,
and/CC
for/IN
a/DT
brief/JJ
time/NN
the/DT
futures/NNS
and/CC
stock/NN
markets/NNS
started/VBD
to/TO
come/VB
back/RB
in/IN
line/NN
./.
Buyers/NNS
stepped/VBD
in/IN
to/TO
the/DT
futures/NNS
pit/NN
./.
But/CC
the/DT
build-up/NN
of/IN
S&P/NNP
futures/NNS
sell/NN
orders/NNS
weighed/VBD
on/IN
the/DT
market/NN
,/,
and/CC
the/DT
link/NN
with/IN
stocks/NNS
began/VBD
to/TO
fray/VB
again/RB
./.
At/IN
about/RB
3:45/CD
,/,
the/DT
S&P/NNP
market/NN
careened/VBD
to/TO
still/RB
another/DT
limit/NN
,/,
of/IN
30/CD
points/NNS
down/RB
,/,
and/CC
trading/NN
was/VBD
locked/VBN
again/RB
./.
Futures/NNS
traders/NNS
say/VBP
the/DT
S&P/NNP
was/VBD
signaling/VBG
that/IN
the/DT
Dow/NNP
could/MD
fall/VB
as/RB
much/JJ
as/IN
200/CD
points/NNS
./.
During/IN
this/DT
time/NN
,/,
small/JJ
investors/NNS
began/VBD
ringing/VBG
their/PRP$
brokers/NNS
,/,
wondering/VBG
whether/IN
another/DT
crash/NN
had/VBD
begun/VBN
./.
At/IN
Prudential-Bache/NNP
Securities/NNP
Inc./NNP
,/,
which/WDT
is/VBZ
trying/VBG
to/TO
cater/VB
to/TO
small/JJ
investors/NNS
,/,
some/DT
demoralized/JJ
brokers/NNS
thought/VBD
this/DT
would/MD
be/VB
the/DT
final/JJ
confidence-crusher/NN
./.
That/DT
's/VBZ
when/WRB
George/NNP
L./NNP
Ball/NNP
,/,
chairman/NN
of/IN
the/DT
Prudential/NNP
Insurance/NNP
Co./NNP
of/IN
America/NNP
unit/NN
,/,
took/VBD
to/TO
the/DT
internal/JJ
intercom/NN
system/NN
to/TO
declare/VB
that/IN
the/DT
plunge/NN
was/VBD
only/RB
``/``
mechanical/JJ
./.
''/''
``/``
I/PRP
have/VBP
a/DT
hunch/NN
that/IN
this/DT
particular/JJ
decline/NN
today/NN
is/VBZ
something/NN
`/``
more/JJR
ado/NN
about/IN
less/JJR
./.
'/''
It/PRP
would/MD
be/VB
my/PRP$
inclination/NN
to/TO
advise/VB
clients/NNS
not/RB
to/TO
sell/VB
,/,
to/TO
look/VB
for/IN
an/DT
opportunity/NN
to/TO
buy/VB
,/,
''/''
Mr./NNP
Ball/NNP
told/VBD
the/DT
brokers/NNS
./.
At/IN
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
,/,
the/DT
nation/NN
's/POS
biggest/JJS
brokerage/NN
firm/NN
,/,
a/DT
news/NN
release/NN
was/VBD
prepared/VBN
headlined/VBN
``/``
Merrill/NNP
Lynch/NNP
Comments/NNP
on/IN
Market/NNP
Drop/NNP
./.
''/''
The/DT
release/NN
cautioned/VBD
that/IN
``/``
there/EX
are/VBP
significant/JJ
differences/NNS
between/IN
the/DT
current/JJ
environment/NN
and/CC
that/IN
of/IN
October/NNP
1987/CD
''/''
and/CC
that/IN
there/EX
are/VBP
still/RB
``/``
attractive/JJ
investment/NN
opportunities/NNS
''/''
in/IN
the/DT
stock/NN
market/NN
./.
However/RB
,/,
Jeffrey/NNP
B./NNP
Lane/NNP
,/,
president/NN
of/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
,/,
said/VBD
that/IN
Friday/NNP
's/POS
plunge/NN
is/VBZ
``/``
going/VBG
to/TO
set/VB
back/RP
''/''
relations/NNS
with/IN
customers/NNS
,/,
``/``
because/IN
it/PRP
reinforces/VBZ
the/DT
concern/NN
of/IN
volatility/NN
./.
And/CC
I/PRP
think/VBP
a/DT
lot/NN
of/IN
people/NNS
will/MD
harp/VB
on/IN
program/NN
trading/NN
./.
It/PRP
's/VBZ
going/VBG
to/TO
bring/VB
the/DT
debate/NN
right/RB
back/RB
to/TO
the/DT
forefront/NN
./.
''/''
As/IN
the/DT
Dow/NNP
average/JJ
ground/NN
to/TO
its/PRP$
final/JJ
190.58/CD
loss/NN
Friday/NNP
,/,
the/DT
S&P/NNP
pit/NN
stayed/VBD
locked/JJ
at/IN
its/PRP$
30-point/JJ
trading/NN
limit/NN
./.
Jeffrey/NNP
Yass/NNP
of/IN
program/NN
trader/NN
Susquehanna/NNP
Investment/NNP
Group/NNP
said/VBD
2,000/CD
S&P/NNP
contracts/NNS
were/VBD
for/IN
sale/NN
on/IN
the/DT
close/NN
,/,
the/DT
equivalent/NN
of/IN
$/$
330/CD
million/CD
in/IN
stock/NN
./.
But/CC
there/EX
were/VBD
no/DT
buyers/NNS
./.
While/IN
Friday/NNP
's/POS
debacle/NN
involved/VB
mainly/RB
professional/JJ
traders/NNS
rather/RB
than/IN
investors/NNS
,/,
it/PRP
left/VBD
the/DT
market/NN
vulnerable/JJ
to/TO
continued/JJ
selling/NN
this/DT
morning/NN
,/,
traders/NNS
said/VBD
./.
Stock-index/JJ
futures/NNS
contracts/NNS
settled/VBD
at/IN
much/RB
lower/JJR
prices/NNS
than/IN
indexes/NNS
of/IN
the/DT
stock/NN
market/NN
itself/PRP
./.
At/IN
those/DT
levels/NNS
,/,
stocks/NNS
are/VBP
set/VBN
up/RP
to/TO
be/VB
hammered/VBN
by/IN
index/NN
arbitragers/NNS
,/,
who/WP
lock/VBP
in/IN
profits/NNS
by/IN
buying/VBG
futures/NNS
when/WRB
futures/NNS
prices/NNS
fall/VBP
,/,
and/CC
simultaneously/RB
sell/VBP
off/RP
stocks/NNS
./.
But/CC
nobody/NN
knows/VBZ
at/IN
what/WP
level/NN
the/DT
futures/NNS
and/CC
stocks/NNS
will/MD
open/VB
today/NN
./.
The/DT
de-linkage/NN
between/IN
the/DT
stock/NN
and/CC
futures/NNS
markets/NNS
Friday/NNP
will/MD
undoubtedly/RB
cause/NN
renewed/JJ
debate/NN
about/IN
whether/IN
Wall/NNP
Street/NNP
is/VBZ
properly/RB
prepared/JJ
for/IN
another/DT
crash/NN
situation/NN
./.
The/DT
Big/NNP
Board/NNP
's/POS
Mr./NNP
Grasso/NNP
said/VBD
,/,
``/``
Our/PRP$
systemic/JJ
performance/NN
was/VBD
good/JJ
./.
''/''
But/CC
the/DT
exchange/NN
will/MD
``/``
look/VB
at/IN
the/DT
performance/NN
of/IN
all/DT
specialists/NNS
in/IN
all/DT
stocks/NNS
./.
Obviously/RB
we/PRP
'll/MD
take/VB
a/DT
close/JJ
look/NN
at/IN
any/DT
situation/NN
in/IN
which/WDT
we/PRP
think/VBP
the/DT
dealer-community/JJ
obligations/NNS
were/VBD
n't/RB
met/VBN
,/,
''/''
he/PRP
said/VBD
./.
story/NN
:/:
``/``
Fed/NNP
Ready/JJ
to/TO
Inject/VB
Big/JJ
Funds/NNS
''/''
--/:
WSJ/NNP
Oct./NNP
16/CD
,/,
1989/CD
But/CC
specialists/NNS
complain/VBP
privately/RB
that/IN
just/RB
as/IN
in/IN
the/DT
1987/CD
crash/NN
,/,
the/DT
``/``
upstairs/JJ
''/''
firms/NNS
--/:
big/JJ
investment/NN
banks/NNS
that/WDT
support/VBP
the/DT
market/NN
by/IN
trading/VBG
big/JJ
blocks/NNS
of/IN
stock/NN
--/:
stayed/VBD
on/IN
the/DT
sidelines/NNS
during/IN
Friday/NNP
's/POS
blood-letting/NN
./.
Mr./NNP
Phelan/NNP
said/VBD
,/,
``/``
It/PRP
will/MD
take/VB
another/DT
day/NN
or/CC
two/CD
''/''
to/TO
analyze/VB
who/WP
was/VBD
buying/VBG
and/CC
selling/VBG
Friday/NNP
./.
story/NN
:/:
``/``
Fed/NNP
Is/VBZ
Prepared/JJ
To/TO
Offer/VB
Banks/NNS
Massive/JJ
Funds/NNS
''/''
--/:
WSJ/NNP
Oct./NNP
16/CD
,/,
1989/CD
)/)
Concerning/VBG
your/PRP$
Sept./NNP
21/CD
page-one/JJ
article/NN
on/IN
Prince/NNP
Charles/NNP
and/CC
the/DT
leeches/NNS
:/:
It/PRP
's/VBZ
a/DT
few/JJ
hundred/CD
years/NNS
since/IN
England/NNP
has/VBZ
been/VBN
a/DT
kingdom/NN
./.
It/PRP
's/VBZ
now/RB
the/DT
United/NNP
Kingdom/NNP
of/IN
Great/NNP
Britain/NNP
and/CC
Northern/NNP
Ireland/NNP
,/,
comprising/VBG
Wales/NNP
,/,
Northern/NNP
Ireland/NNP
,/,
Scotland/NNP
,/,
and/CC
.../:
oh/UH
yes/UH
,/,
England/NNP
,/,
too/RB
./.
Just/RB
thought/VBD
you/PRP
'd/MD
like/VB
to/TO
know/VB
./.
George/NNP
Morton/NNP
San/NNP
Diego/NNP
Ports/NNP
of/IN
Call/NNP
Inc./NNP
reached/VBD
agreements/NNS
to/TO
sell/VB
its/PRP$
remaining/VBG
seven/CD
aircraft/NN
to/TO
buyers/NNS
that/WDT
were/VBD
n't/RB
disclosed/VBN
./.
The/DT
agreements/NNS
bring/VBP
to/TO
a/DT
total/NN
of/IN
nine/CD
the/DT
number/NN
of/IN
planes/NNS
the/DT
travel/NN
company/NN
has/VBZ
sold/VBN
this/DT
year/NN
as/IN
part/NN
of/IN
a/DT
restructuring/NN
./.
The/DT
company/NN
said/VBD
a/DT
portion/NN
of/IN
the/DT
$/$
32/CD
million/CD
realized/VBN
from/IN
the/DT
sales/NNS
will/MD
be/VB
used/VBN
to/TO
repay/VB
its/PRP$
bank/NN
debt/NN
and/CC
other/JJ
obligations/NNS
resulting/VBG
from/IN
the/DT
currently/RB
suspended/VBN
air-charter/JJ
operations/NNS
./.
Earlier/RBR
the/DT
company/NN
announced/VBD
it/PRP
would/MD
sell/VB
its/PRP$
aging/VBG
fleet/NN
of/IN
Boeing/NNP
Co./NNP
707s/NNPS
because/IN
of/IN
increasing/VBG
maintenance/NN
costs/NNS
./.
A/DT
consortium/NN
of/IN
private/JJ
investors/NNS
operating/VBG
as/IN
LJH/NNP
Funding/NNP
Co./NNP
said/VBD
it/PRP
has/VBZ
made/VBN
a/DT
$/$
409/CD
million/CD
cash/NN
bid/NN
for/IN
most/JJS
of/IN
L.J./NNP
Hooker/NNP
Corp./NNP
's/POS
real-estate/NN
and/CC
shopping-center/NN
holdings/NNS
./.
The/DT
$/$
409/CD
million/CD
bid/NN
includes/VBZ
the/DT
assumption/NN
of/IN
an/DT
estimated/JJ
$/$
300/CD
million/CD
in/IN
secured/JJ
liabilities/NNS
on/IN
those/DT
properties/NNS
,/,
according/VBG
to/TO
those/DT
making/VBG
the/DT
bid/NN
./.
The/DT
group/NN
is/VBZ
led/VBN
by/IN
Jay/NNP
Shidler/NNP
,/,
chief/JJ
executive/JJ
officer/NN
of/IN
Shidler/NNP
Investment/NNP
Corp./NNP
in/IN
Honolulu/NNP
,/,
and/CC
A./NNP
Boyd/NNP
Simpson/NNP
,/,
chief/JJ
executive/NN
of/IN
the/DT
Atlanta-based/JJ
Simpson/NNP
Organization/NNP
Inc/NNP
./.
Mr./NNP
Shidler/NNP
's/POS
company/NN
specializes/VBZ
in/IN
commercial/JJ
real-estate/NN
investment/NN
and/CC
claims/VBZ
to/TO
have/VB
$/$
1/CD
billion/CD
in/IN
assets/NNS
;/:
Mr./NNP
Simpson/NNP
is/VBZ
a/DT
developer/NN
and/CC
a/DT
former/JJ
senior/JJ
executive/NN
of/IN
L.J./NNP
Hooker/NNP
./.
``/``
The/DT
assets/NNS
are/VBP
good/JJ
,/,
but/CC
they/PRP
require/VBP
more/JJR
money/NN
and/CC
management/NN
''/''
than/IN
can/MD
be/VB
provided/VBN
in/IN
L.J./NNP
Hooker/NNP
's/POS
current/JJ
situation/NN
,/,
said/VBD
Mr./NNP
Simpson/NNP
in/IN
an/DT
interview/NN
./.
``/``
Hooker/NNP
's/POS
philosophy/NN
was/VBD
to/TO
build/VB
and/CC
sell/VB
./.
We/PRP
want/VBP
to/TO
build/VB
and/CC
hold/VB
./.
''/''
L.J./NNP
Hooker/NNP
,/,
based/VBN
in/IN
Atlanta/NNP
,/,
is/VBZ
operating/VBG
with/IN
protection/NN
from/IN
its/PRP$
creditors/NNS
under/IN
Chapter/NNP
11/CD
of/IN
the/DT
U.S./NNP
Bankruptcy/NNP
Code/NNP
./.
Its/PRP$
parent/NN
company/NN
,/,
Hooker/NNP
Corp./NNP
of/IN
Sydney/NNP
,/,
Australia/NNP
,/,
is/VBZ
currently/RB
being/VBG
managed/VBN
by/IN
a/DT
court-appointed/JJ
provisional/JJ
liquidator/NN
./.
Sanford/NNP
Sigoloff/NNP
,/,
chief/JJ
executive/NN
of/IN
L.J./NNP
Hooker/NNP
,/,
said/VBD
yesterday/NN
in/IN
a/DT
statement/NN
that/IN
he/PRP
has/VBZ
not/RB
yet/RB
seen/VBN
the/DT
bid/NN
but/CC
that/IN
he/PRP
would/MD
review/VB
it/PRP
and/CC
bring/VB
it/PRP
to/TO
the/DT
attention/NN
of/IN
the/DT
creditors/NNS
committee/NN
./.
The/DT
$/$
409/CD
million/CD
bid/NN
is/VBZ
estimated/VBN
by/IN
Mr./NNP
Simpson/NNP
as/IN
representing/VBG
75/CD
%/NN
of/IN
the/DT
value/NN
of/IN
all/DT
Hooker/NNP
real-estate/NN
holdings/NNS
in/IN
the/DT
U.S/NNP
./.
Not/RB
included/VBN
in/IN
the/DT
bid/NN
are/VBP
Bonwit/NNP
Teller/NNP
or/CC
B./NNP
Altman/NNP
&/CC
Co./NNP
,/,
L.J./NNP
Hooker/NNP
's/POS
department-store/NN
chains/NNS
./.
The/DT
offer/NN
covers/VBZ
the/DT
massive/JJ
1.8/CD
million-square-foot/JJ
Forest/NNP
Fair/NNP
Mall/NNP
in/IN
Cincinnati/NNP
,/,
the/DT
800,000/CD
square-foot/JJ
Richland/NNP
Fashion/NNP
Mall/NNP
in/IN
Columbia/NNP
,/,
S.C./NNP
,/,
and/CC
the/DT
700,000/CD
square-foot/JJ
Thornton/NNP
Town/NNP
Center/NNP
mall/NN
in/IN
Thornton/NNP
,/,
Colo/NNP
./.
The/DT
Thornton/NNP
mall/NN
opened/VBD
Sept./NNP
19/CD
with/IN
a/DT
Bigg/NNP
's/POS
hypermarket/NN
as/IN
its/PRP$
anchor/NN
;/:
the/DT
Columbia/NNP
mall/NN
is/VBZ
expected/VBN
to/TO
open/VB
Nov./NNP
15/CD
./.
Other/JJ
Hooker/NNP
properties/NNS
included/VBN
are/VBP
a/DT
20-story/JJ
office/NN
tower/NN
in/IN
midtown/JJ
Atlanta/NNP
,/,
expected/VBN
to/TO
be/VB
completed/VBN
next/IN
February/NNP
;/:
vacant/JJ
land/NN
sites/NNS
in/IN
Florida/NNP
and/CC
Ohio/NNP
;/:
L.J./NNP
Hooker/NNP
International/NNP
,/,
the/DT
commercial/JJ
real-estate/NN
brokerage/NN
company/NN
that/WDT
once/RB
did/VBD
business/NN
as/IN
Merrill/NNP
Lynch/NNP
Commercial/NNP
Real/NNP
Estate/NNP
,/,
plus/CC
other/JJ
shopping/NN
centers/NNS
./.
The/DT
consortium/NN
was/VBD
put/VBN
together/RB
by/IN
Hoare/NNP
Govett/NNP
,/,
the/DT
London-based/JJ
investment/NN
banking/NN
company/NN
that/WDT
is/VBZ
a/DT
subsidiary/NN
of/IN
Security/NNP
Pacific/NNP
Corp/NNP
./.
``/``
We/PRP
do/VBP
n't/RB
anticipate/VB
any/DT
problems/NNS
in/IN
raising/VBG
the/DT
funding/NN
for/IN
the/DT
bid/NN
,/,
''/''
said/VBD
Allan/NNP
Campbell/NNP
,/,
the/DT
head/NN
of/IN
mergers/NNS
and/CC
acquisitions/NNS
at/IN
Hoare/NNP
Govett/NNP
,/,
in/IN
an/DT
interview/NN
./.
Hoare/NNP
Govett/NNP
is/VBZ
acting/VBG
as/IN
the/DT
consortium/NN
's/POS
investment/NN
bankers/NNS
./.
According/VBG
to/TO
people/NNS
familiar/JJ
with/IN
the/DT
consortium/NN
,/,
the/DT
bid/NN
was/VBD
code-named/JJ
Project/NNP
Klute/NNP
,/,
a/DT
reference/NN
to/TO
the/DT
film/NN
``/``
Klute/NNP
''/''
in/IN
which/WDT
a/DT
prostitute/NN
played/VBN
by/IN
actress/NN
Jane/NNP
Fonda/NNP
is/VBZ
saved/VBN
from/IN
a/DT
psychotic/JJ
businessman/NN
by/IN
a/DT
police/NN
officer/NN
named/VBN
John/NNP
Klute/NNP
./.
L.J./NNP
Hooker/NNP
was/VBD
a/DT
small/JJ
home-building/JJ
company/NN
based/VBN
in/IN
Atlanta/NNP
in/IN
1979/CD
when/WRB
Mr./NNP
Simpson/NNP
was/VBD
hired/VBN
to/TO
push/VB
it/PRP
into/IN
commercial/JJ
development/NN
./.
The/DT
company/NN
grew/VBD
modestly/RB
until/IN
1986/CD
,/,
when/WRB
a/DT
majority/NN
position/NN
in/IN
Hooker/NNP
Corp./NNP
was/VBD
acquired/VBN
by/IN
Australian/JJ
developer/NN
George/NNP
Herscu/NNP
,/,
currently/RB
Hooker/NNP
's/POS
chairman/NN
./.
Mr./NNP
Herscu/NNP
proceeded/VBD
to/TO
launch/VB
an/DT
ambitious/JJ
,/,
but/CC
ill-fated/JJ
,/,
$/$
1/CD
billion/CD
acquisition/NN
binge/NN
that/WDT
included/VBD
Bonwit/NNP
Teller/NNP
and/CC
B./NNP
Altman/NNP
&/CC
Co./NNP
,/,
as/RB
well/RB
as/IN
majority/NN
positions/NNS
in/IN
Merksamer/NNP
Jewelers/NNP
,/,
a/DT
Sacramento/NNP
chain/NN
;/:
Sakowitz/NNP
Inc./NNP
,/,
the/DT
Houston-based/JJ
retailer/NN
,/,
and/CC
Parisian/NNP
Inc./NNP
,/,
the/DT
Southeast/NNP
department-store/NN
chain/NN
./.
Eventually/RB
Mr./NNP
Simpson/NNP
and/CC
Mr./NNP
Herscu/NNP
had/VBD
a/DT
falling/NN
out/RP
over/IN
the/DT
direction/NN
of/IN
the/DT
company/NN
,/,
and/CC
Mr./NNP
Simpson/NNP
said/VBD
he/PRP
resigned/VBD
in/IN
1988/CD
./.
Since/IN
then/RB
,/,
Hooker/NNP
Corp./NNP
has/VBZ
sold/VBN
its/PRP$
interest/NN
in/IN
the/DT
Parisian/JJ
chain/NN
back/RB
to/TO
Parisian/JJ
's/POS
management/NN
and/CC
is/VBZ
currently/RB
attempting/VBG
to/TO
sell/VB
the/DT
B./NNP
Altman/NNP
&/CC
Co./NNP
chain/NN
./.
In/IN
addition/NN
,/,
Robert/NNP
Sakowitz/NNP
,/,
chief/JJ
executive/NN
of/IN
the/DT
Sakowitz/NNP
chain/NN
,/,
is/VBZ
seeking/VBG
funds/NNS
to/TO
buy/VB
out/RP
the/DT
Hooker/NNP
interest/NN
in/IN
his/PRP$
company/NN
./.
The/DT
Merksamer/NNP
chain/NN
is/VBZ
currently/RB
being/VBG
offered/VBN
for/IN
sale/NN
by/IN
First/NNP
Boston/NNP
Corp/NNP
./.
Reached/VBN
in/IN
Honolulu/NNP
,/,
Mr./NNP
Shidler/NNP
said/VBD
that/IN
he/PRP
believes/VBZ
the/DT
various/JJ
Hooker/NNP
malls/NNS
can/MD
become/VB
profitable/JJ
with/IN
new/JJ
management/NN
./.
``/``
These/DT
are/VBP
n't/RB
mature/JJ
assets/NNS
,/,
but/CC
they/PRP
have/VBP
the/DT
potential/NN
to/TO
be/VB
so/RB
,/,
''/''
said/VBD
Mr./NNP
Shidler/NNP
./.
``/``
Managed/VBN
properly/RB
,/,
and/CC
with/IN
a/DT
long-term/JJ
outlook/NN
,/,
these/DT
can/MD
become/VB
investment-grade/JJ
quality/NN
properties/NNS
./.
''/''
Canadian/JJ
steel-ingot/NN
production/NN
totaled/VBD
291,890/CD
metric/JJ
tons/NNS
in/IN
the/DT
week/NN
ended/VBN
Oct./NNP
7/CD
,/,
up/RB
14.8/CD
%/NN
from/IN
the/DT
preceding/JJ
week/NN
's/POS
total/NN
of/IN
254,280/CD
tons/NNS
,/,
Statistics/NNP
Canada/NNP
,/,
a/DT
federal/JJ
agency/NN
,/,
said/VBD
./.
The/DT
week/NN
's/POS
total/NN
was/VBD
up/RB
6.2/CD
%/NN
from/IN
274,963/CD
tons/NNS
a/DT
year/NN
earlier/RBR
./.
The/DT
year-to-date/JJ
total/NN
was/VBD
12,006,883/CD
tons/NNS
,/,
up/RB
7.8/CD
%/NN
from/IN
11,141,711/CD
tons/NNS
a/DT
year/NN
earlier/RBR
./.
The/DT
Treasury/NNP
plans/NNS
to/TO
raise/VB
$/$
175/CD
million/CD
in/IN
new/JJ
cash/NN
Thursday/NNP
by/IN
selling/VBG
about/RB
$/$
9.75/CD
billion/CD
of/IN
52-week/JJ
bills/NNS
and/CC
redeeming/VBG
$/$
9.58/CD
billion/CD
of/IN
maturing/VBG
bills/NNS
./.
The/DT
bills/NNS
will/MD
be/VB
dated/VBN
Oct./NNP
26/CD
and/CC
will/MD
mature/VB
Oct./NNP
25/CD
,/,
1990/CD
./.
They/PRP
will/MD
be/VB
available/JJ
in/IN
minimum/JJ
denominations/NNS
of/IN
$/$
10,000/CD
./.
Bids/NNS
must/MD
be/VB
received/VBN
by/IN
1/CD
p.m./RB
EDT/NNP
Thursday/NNP
at/IN
the/DT
Treasury/NNP
or/CC
at/IN
Federal/NNP
Reserve/NNP
banks/NNS
or/CC
branches/NNS
./.
As/IN
small/JJ
investors/NNS
peppered/VBD
their/PRP$
mutual/JJ
funds/NNS
with/IN
phone/NN
calls/NNS
over/IN
the/DT
weekend/NN
,/,
big/JJ
fund/NN
managers/NNS
said/VBD
they/PRP
have/VBP
a/DT
strong/JJ
defense/NN
against/IN
any/DT
wave/NN
of/IN
withdrawals/NNS
:/:
cash/NN
./.
Unlike/IN
the/DT
weekend/NN
before/IN
Black/NNP
Monday/NNP
,/,
the/DT
funds/NNS
were/VBD
n't/RB
swamped/VBN
with/IN
heavy/JJ
withdrawal/NN
requests/NNS
./.
And/CC
many/JJ
fund/NN
managers/NNS
have/VBP
built/VBN
up/RP
cash/NN
levels/NNS
and/CC
say/VBP
they/PRP
will/MD
be/VB
buying/VBG
stock/NN
this/DT
week/NN
./.
At/IN
Fidelity/NNP
Investments/NNP
,/,
the/DT
nation/NN
's/POS
largest/JJS
fund/NN
company/NN
,/,
telephone/NN
volume/NN
was/VBD
up/RB
sharply/RB
,/,
but/CC
it/PRP
was/VBD
still/RB
at/IN
just/RB
half/PDT
the/DT
level/NN
of/IN
the/DT
weekend/NN
preceding/VBG
Black/NNP
Monday/NNP
in/IN
1987/CD
./.
The/DT
Boston/NNP
firm/NN
said/VBD
stock-fund/NN
redemptions/NNS
were/VBD
running/VBG
at/IN
less/JJR
than/IN
one-third/NN
the/DT
level/NN
two/CD
years/NNS
ago/RB
./.
As/IN
of/IN
yesterday/NN
afternoon/NN
,/,
the/DT
redemptions/NNS
represented/VBD
less/JJR
than/IN
15/CD
%/NN
of/IN
the/DT
total/JJ
cash/NN
position/NN
of/IN
about/RB
$/$
2/CD
billion/CD
of/IN
Fidelity/NNP
's/POS
stock/NN
funds/NNS
./.
``/``
Two/CD
years/NNS
ago/RB
there/EX
were/VBD
massive/JJ
redemption/NN
levels/NNS
over/IN
the/DT
weekend/NN
and/CC
a/DT
lot/NN
of/IN
fear/NN
around/RB
,/,
''/''
said/VBD
C./NNP
Bruce/NNP
Johnstone/NNP
,/,
who/WP
runs/VBZ
Fidelity/NNP
Investments/NNP
'/POS
$/$
5/CD
billion/CD
Equity-Income/NNP
Fund/NNP
./.
``/``
This/DT
feels/VBZ
more/RBR
like/IN
a/DT
one-shot/JJ
deal/NN
./.
People/NNS
are/VBP
n't/RB
panicking/VBG
./.
''/''
The/DT
test/NN
may/MD
come/VB
today/NN
./.
Friday/NNP
's/POS
stock/NN
market/NN
sell-off/NN
came/VBD
too/RB
late/RB
for/IN
many/JJ
investors/NNS
to/TO
act/VB
./.
Some/DT
shareholders/NNS
have/VBP
held/VBN
off/RP
until/IN
today/NN
because/IN
any/DT
fund/NN
exchanges/NNS
made/VBN
after/IN
Friday/NNP
's/POS
close/NN
would/MD
take/VB
place/NN
at/IN
today/NN
's/POS
closing/NN
prices/NNS
./.
Stock/NN
fund/NN
redemptions/NNS
during/IN
the/DT
1987/CD
debacle/NN
did/VBD
n't/RB
begin/VB
to/TO
snowball/VB
until/IN
after/IN
the/DT
market/NN
opened/VBD
on/IN
Black/NNP
Monday/NNP
./.
But/CC
fund/NN
managers/NNS
say/VBP
they/PRP
're/VBP
ready/JJ
./.
Many/JJ
have/VBP
raised/VBN
cash/NN
levels/NNS
,/,
which/WDT
act/VBP
as/IN
a/DT
buffer/NN
against/IN
steep/JJ
market/NN
declines/NNS
./.
Mario/NNP
Gabelli/NNP
,/,
for/IN
instance/NN
,/,
holds/VBZ
cash/NN
positions/NNS
well/RB
above/IN
20/CD
%/NN
in/IN
several/JJ
of/IN
his/PRP$
funds/NNS
./.
Windsor/NNP
Fund/NNP
's/POS
John/NNP
Neff/NNP
and/CC
Mutual/NNP
Series/NNP
'/POS
Michael/NNP
Price/NNP
said/VBD
they/PRP
had/VBD
raised/VBN
their/PRP$
cash/NN
levels/NNS
to/TO
more/JJR
than/IN
20/CD
%/NN
and/CC
30/CD
%/NN
,/,
respectively/RB
,/,
this/DT
year/NN
./.
Even/RB
Peter/NNP
Lynch/NNP
,/,
manager/NN
of/IN
Fidelity/NNP
's/POS
$/$
12.7/CD
billion/CD
Magellan/NNP
Fund/NNP
,/,
the/DT
nation/NN
's/POS
largest/JJS
stock/NN
fund/NN
,/,
built/VBD
up/RP
cash/NN
to/TO
7/CD
%/NN
or/CC
$/$
850/CD
million/CD
./.
One/CD
reason/NN
is/VBZ
that/DT
after/IN
two/CD
years/NNS
of/IN
monthly/JJ
net/JJ
redemptions/NNS
,/,
the/DT
fund/NN
posted/VBD
net/JJ
inflows/NNS
of/IN
money/NN
from/IN
investors/NNS
in/IN
August/NNP
and/CC
September/NNP
./.
``/``
I/PRP
've/VBP
let/VBD
the/DT
money/NN
build/VB
up/RP
,/,
''/''
Mr./NNP
Lynch/NNP
said/VBD
,/,
who/WP
added/VBD
that/IN
he/PRP
has/VBZ
had/VBN
trouble/NN
finding/VBG
stocks/NNS
he/PRP
likes/VBZ
./.
Not/RB
all/DT
funds/NNS
have/VBP
raised/VBN
cash/NN
levels/NNS
,/,
of/IN
course/NN
./.
As/IN
a/DT
group/NN
,/,
stock/NN
funds/NNS
held/VBD
10.2/CD
%/NN
of/IN
assets/NNS
in/IN
cash/NN
as/IN
of/IN
August/NNP
,/,
the/DT
latest/JJS
figures/NNS
available/JJ
from/IN
the/DT
Investment/NNP
Company/NNP
Institute/NNP
./.
That/DT
was/VBD
modestly/RB
higher/JJR
than/IN
the/DT
8.8/CD
%/NN
and/CC
9.2/CD
%/JJ
levels/NNS
in/IN
August/NNP
and/CC
September/NNP
of/IN
1987/CD
./.
Also/RB
,/,
persistent/JJ
redemptions/NNS
would/MD
force/VB
some/DT
fund/NN
managers/NNS
to/TO
dump/VB
stocks/NNS
to/TO
raise/VB
cash/NN
./.
But/CC
a/DT
strong/JJ
level/NN
of/IN
investor/NN
withdrawals/NNS
is/VBZ
much/RB
more/RBR
unlikely/JJ
this/DT
time/NN
around/RB
,/,
fund/NN
managers/NNS
said/VBD
./.
A/DT
major/JJ
reason/NN
is/VBZ
that/IN
investors/NNS
already/RB
have/VBP
sharply/RB
scaled/VBN
back/RP
their/PRP$
purchases/NNS
of/IN
stock/NN
funds/NNS
since/IN
Black/NNP
Monday/NNP
./.
Stock-fund/JJ
sales/NNS
have/VBP
rebounded/VBN
in/IN
recent/JJ
months/NNS
,/,
but/CC
monthly/JJ
net/JJ
purchases/NNS
are/VBP
still/RB
running/VBG
at/IN
less/JJR
than/IN
half/NN
1987/CD
levels/NNS
./.
``/``
There/EX
's/VBZ
not/RB
nearly/RB
as/IN
much/JJ
froth/NN
,/,
''/''
said/VBD
John/NNP
Bogle/NNP
,/,
chairman/NN
of/IN
Vanguard/NNP
Group/NNP
Inc./NNP
,/,
a/DT
big/JJ
Valley/NNP
Forge/NNP
,/,
Pa./NNP
,/,
fund/NN
company/NN
./.
Many/JJ
fund/NN
managers/NNS
argue/VBP
that/IN
now/RB
's/VBZ
the/DT
time/NN
to/TO
buy/VB
./.
Vincent/NNP
Bajakian/NNP
,/,
manager/NN
of/IN
the/DT
$/$
1.8/CD
billion/CD
Wellington/NNP
Fund/NNP
,/,
added/VBD
to/TO
his/PRP$
positions/NNS
in/IN
Bristol-Myers/NNP
Squibb/NNP
,/,
Woolworth/NNP
and/CC
Dun/NNP
&/CC
Bradstreet/NNP
Friday/NNP
./.
And/CC
today/NN
he/PRP
'll/MD
be/VB
looking/VBG
to/TO
buy/VB
drug/NN
stocks/NNS
like/IN
Eli/NNP
Lilly/NNP
,/,
Pfizer/NNP
and/CC
American/NNP
Home/NNP
Products/NNP
whose/WP$
dividend/NN
yields/NNS
have/VBP
been/VBN
bolstered/VBN
by/IN
stock/NN
declines/NNS
./.
Fidelity/NNP
's/POS
Mr./NNP
Lynch/NNP
,/,
for/IN
his/PRP$
part/NN
,/,
snapped/VBD
up/RP
Southern/NNP
Co./NNP
shares/NNS
Friday/NNP
after/IN
the/DT
stock/NN
got/VBD
hammered/VBN
./.
If/IN
the/DT
market/NN
drops/VBZ
further/RBR
today/NN
,/,
he/PRP
said/VBD
he/PRP
'll/MD
be/VB
buying/VBG
blue/JJ
chips/NNS
such/JJ
as/IN
Bristol-Myers/NNP
and/CC
Kellogg/NNP
./.
``/``
If/IN
they/PRP
croak/VBP
stocks/NNS
like/IN
that/DT
,/,
''/''
he/PRP
said/VBD
,/,
it/PRP
presents/VBZ
an/DT
opportunity/NN
that/WDT
is/VBZ
``/``
the/DT
kind/NN
of/IN
thing/NN
you/PRP
dream/VBP
about/IN
./.
''/''
Major/JJ
mutual-fund/NN
groups/NNS
said/VBD
phone/NN
calls/NNS
were/VBD
arriving/VBG
at/IN
twice/RB
the/DT
normal/JJ
weekend/NN
pace/NN
yesterday/NN
./.
But/CC
most/JJS
investors/NNS
were/VBD
seeking/VBG
share/NN
prices/NNS
and/CC
other/JJ
information/NN
./.
Trading/NN
volume/NN
was/VBD
only/RB
modestly/RB
higher/JJR
than/IN
normal/JJ
./.
Still/RB
,/,
fund/NN
groups/NNS
are/VBP
n't/RB
taking/VBG
any/DT
chances/NNS
./.
They/PRP
hope/VBP
to/TO
avoid/VB
the/DT
jammed/JJ
phone/NN
lines/NNS
and/CC
other/JJ
snags/NNS
that/WDT
infuriated/VBD
some/DT
fund/NN
investors/NNS
in/IN
October/NNP
1987/CD
./.
Fidelity/NNP
on/IN
Saturday/NNP
opened/VBD
its/PRP$
54/CD
walk-in/JJ
investor/NN
centers/NNS
across/IN
the/DT
country/NN
./.
The/DT
centers/NNS
normally/RB
are/VBP
closed/JJ
through/IN
the/DT
weekend/NN
./.
In/IN
addition/NN
,/,
East/NNP
Coast/NNP
centers/NNS
will/MD
open/VB
at/IN
7:30/CD
EDT/NNP
this/DT
morning/NN
,/,
instead/RB
of/IN
the/DT
normal/JJ
8:30/CD
./.
T./NNP
Rowe/NNP
Price/NNP
Associates/NNP
Inc./NNP
increased/VBD
its/PRP$
staff/NN
of/IN
phone/NN
representatives/NNS
to/TO
handle/VB
investor/NN
requests/NNS
./.
The/DT
Baltimore-based/JJ
group/NN
noted/VBD
that/IN
some/DT
investors/NNS
moved/VBD
money/NN
from/IN
stock/NN
funds/NNS
to/TO
money-market/NN
funds/NNS
./.
But/CC
most/JJS
investors/NNS
seemed/VBD
to/TO
be/VB
``/``
in/IN
an/DT
information/NN
mode/NN
rather/RB
than/IN
in/IN
a/DT
transaction/NN
mode/NN
,/,
''/''
said/VBD
Steven/NNP
Norwitz/NNP
,/,
a/DT
vice/NN
president/NN
./.
And/CC
Vanguard/NNP
,/,
among/IN
other/JJ
groups/NNS
,/,
said/VBD
it/PRP
was/VBD
adding/VBG
more/JJR
phone/NN
representatives/NNS
today/NN
to/TO
help/VB
investors/NNS
get/VB
through/RP
./.
In/IN
an/DT
unusual/JJ
move/NN
,/,
several/JJ
funds/NNS
moved/VBD
to/TO
calm/VB
investors/NNS
with/IN
recordings/NNS
on/IN
their/PRP$
toll-free/JJ
phone/NN
lines/NNS
./.
``/``
We/PRP
view/VBP
{/(
Friday/NNP
's/POS
market/NN
decline/NN
as/IN
offering/VBG
us/PRP
a/DT
buying/NN
opportunity/NN
as/IN
long-term/JJ
investors/NNS
,/,
''/''
a/DT
recording/NN
at/IN
Gabelli/NNP
&/CC
Co./NNP
funds/NNS
said/VBD
over/IN
the/DT
weekend/NN
./.
The/DT
Janus/NNP
Group/NNP
had/VBD
a/DT
similar/JJ
recording/NN
for/IN
investors/NNS
./.
Several/JJ
fund/NN
managers/NNS
expect/VBP
a/DT
rough/JJ
market/NN
this/DT
morning/NN
before/IN
prices/NNS
stabilize/VBP
./.
Some/DT
early/JJ
selling/NN
is/VBZ
likely/JJ
to/TO
stem/VB
from/IN
investors/NNS
and/CC
portfolio/NN
managers/NNS
who/WP
want/VBP
to/TO
lock/VB
in/RP
this/DT
year/NN
's/POS
fat/JJ
profits/NNS
./.
Stock/NN
funds/NNS
have/VBP
averaged/VBN
a/DT
staggering/JJ
gain/NN
of/IN
25/CD
%/NN
through/IN
September/NNP
,/,
according/VBG
to/TO
Lipper/NNP
Analytical/NNP
Services/NNP
Inc/NNP
./.
Elaine/NNP
Garzarelli/NNP
,/,
who/WP
runs/VBZ
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
's/POS
$/$
335/CD
million/CD
Sector/NNP
Analysis/NNP
Portfolio/NNP
,/,
predicts/VBZ
the/DT
market/NN
will/MD
open/VB
down/RB
at/IN
least/JJS
50/CD
points/NNS
on/IN
technical/JJ
factors/NNS
and/CC
``/``
some/DT
panic/NN
selling/NN
./.
''/''
But/CC
she/PRP
expects/VBZ
prices/NNS
to/TO
rebound/VB
soon/RB
and/CC
is/VBZ
telling/VBG
investors/NNS
she/PRP
expects/VBZ
the/DT
stock/NN
market/NN
wo/MD
n't/RB
decline/VB
more/JJR
than/IN
10/CD
%/NN
to/TO
15/CD
%/NN
from/IN
recent/JJ
highs/NNS
./.
``/``
This/DT
is/VBZ
not/RB
a/DT
major/JJ
crash/NN
,/,
''/''
she/PRP
said/VBD
./.
Nevertheless/RB
,/,
Ms./NNP
Garzarelli/NNP
said/VBD
she/PRP
was/VBD
swamped/VBN
with/IN
phone/NN
calls/NNS
over/IN
the/DT
weekend/NN
from/IN
nervous/JJ
shareholders/NNS
./.
``/``
Half/NN
of/IN
them/PRP
are/VBP
really/RB
scared/JJ
and/CC
want/VB
to/TO
sell/VB
,/,
''/''
she/PRP
said/VBD
,/,
``/``
but/CC
I/PRP
'm/VBP
trying/VBG
to/TO
talk/VB
them/PRP
out/IN
of/IN
it/PRP
./.
''/''
She/PRP
added/VBD
,/,
``/``
If/IN
they/PRP
all/DT
were/VBD
bullish/JJ
,/,
I/PRP
'd/MD
really/RB
be/VB
upset/JJ
./.
''/''
The/DT
backdrop/NN
to/TO
Friday/NNP
's/POS
slide/NN
was/VBD
markedly/RB
different/JJ
from/IN
that/DT
of/IN
the/DT
October/NNP
1987/CD
crash/NN
,/,
fund/NN
managers/NNS
argue/VBP
./.
Two/CD
years/NNS
ago/RB
,/,
unlike/IN
today/NN
,/,
the/DT
dollar/NN
was/VBD
weak/JJ
,/,
interest/NN
rates/NNS
were/VBD
rising/VBG
and/CC
the/DT
market/NN
was/VBD
very/RB
overvalued/JJ
,/,
they/PRP
say/VBP
./.
``/``
From/IN
the/DT
investors/NNS
'/POS
standpoint/NN
,/,
institutions/NNS
and/CC
individuals/NNS
learned/VBD
a/DT
painful/JJ
lesson/NN
.../:
by/IN
selling/VBG
at/IN
the/DT
lows/NNS
''/''
on/IN
Black/NNP
Monday/NNP
,/,
said/VBD
Stephen/NNP
Boesel/NNP
,/,
manager/NN
of/IN
the/DT
$/$
580/CD
million/CD
T./NNP
Rowe/NNP
Price/NNP
Growth/NNP
and/CC
Income/NNP
Fund/NNP
./.
This/DT
time/NN
,/,
``/``
I/PRP
do/VBP
n't/RB
think/VB
we/PRP
'll/MD
get/VB
a/DT
panic/NN
reaction/NN
./.
''/''
Newport/NNP
Corp./NNP
said/VBD
it/PRP
expects/VBZ
to/TO
report/VB
fiscal-first-quarter/JJ
earnings/NNS
of/IN
between/IN
15/CD
cents/NNS
and/CC
19/CD
cents/NNS
a/DT
share/NN
,/,
somewhat/RB
below/IN
analysts/NNS
'/POS
estimates/NNS
of/IN
19/CD
cents/NNS
to/TO
23/CD
cents/NNS
./.
The/DT
maker/NN
of/IN
scientific/JJ
instruments/NNS
and/CC
laser/NN
parts/NNS
said/VBD
orders/NNS
fell/VBD
below/IN
expectations/NNS
in/IN
recent/JJ
months/NNS
./.
A/DT
spokesman/NN
added/VBD
that/IN
sales/NNS
in/IN
the/DT
current/JJ
quarter/NN
will/NN
about/RB
equal/VB
the/DT
yearearlier/JJ
quarter/NN
's/POS
figure/NN
,/,
when/WRB
Newport/NNP
reported/VBD
net/JJ
income/NN
of/IN
$/$
1.7/CD
million/CD
,/,
or/CC
21/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
$/$
14.1/CD
million/CD
in/IN
sales/NNS
./.
Ripples/NNS
from/IN
the/DT
strike/NN
by/IN
55,000/CD
Machinists/NNPS
union/NN
members/NNS
against/IN
Boeing/NNP
Co./NNP
reached/VBD
air/NN
carriers/NNS
Friday/NNP
as/IN
America/NNP
West/NNP
Airlines/NNP
announced/VBD
it/PRP
will/MD
postpone/VB
its/PRP$
new/JJ
service/NN
out/IN
of/IN
Houston/NNP
because/IN
of/IN
delays/NNS
in/IN
receiving/VBG
aircraft/NN
from/IN
the/DT
Seattle/NNP
jet/NN
maker/NN
./.
Peter/NNP
Otradovec/NNP
,/,
vice/NN
president/NN
for/IN
planning/NN
at/IN
the/DT
Phoenix/NNP
,/,
Ariz./NNP
,/,
carrier/NN
,/,
said/VBD
in/IN
an/DT
interview/NN
that/IN
the/DT
work/NN
stoppage/NN
at/IN
Boeing/NNP
,/,
now/RB
entering/VBG
its/PRP$
13th/JJ
day/NN
,/,
``/``
has/VBZ
caused/VBN
some/DT
turmoil/NN
in/IN
our/PRP$
scheduling/NN
''/''
and/CC
that/IN
more/JJR
than/IN
500/CD
passengers/NNS
who/WP
were/VBD
booked/VBN
to/TO
fly/VB
out/IN
of/IN
Houston/NNP
on/IN
America/NNP
West/NNP
would/MD
now/RB
be/VB
put/VBN
on/IN
other/JJ
airlines/NNS
./.
Mr./NNP
Otradovec/NNP
said/VBD
Boeing/NNP
told/VBD
America/NNP
West/NNP
that/IN
the/DT
757/NNP
it/PRP
was/VBD
supposed/VBN
to/TO
get/VB
this/DT
Thursday/NNP
would/MD
n't/RB
be/VB
delivered/VBN
until/IN
Nov./NNP
7/CD
--/:
the/DT
day/NN
after/IN
the/DT
airline/NN
had/VBD
been/VBN
planning/VBG
to/TO
initiate/VB
service/NN
at/IN
Houston/NNP
with/IN
four/CD
daily/JJ
flights/NNS
,/,
including/VBG
three/CD
nonstops/NNS
to/TO
Phoenix/NNP
and/CC
one/CD
nonstop/NN
to/TO
Las/NNP
Vegas/NNP
./.
Now/RB
,/,
those/DT
routes/NNS
are/VBP
n't/RB
expected/VBN
to/TO
begin/VB
until/IN
Jan/NNP
./.
Boeing/NNP
is/VBZ
also/RB
supposed/VBN
to/TO
send/VB
to/TO
America/NNP
West/NNP
another/DT
757/CD
twin-engine/JJ
aircraft/NN
as/RB
well/RB
as/IN
a/DT
737/CD
by/IN
year/NN
's/POS
end/NN
./.
Those/DT
,/,
too/RB
,/,
are/VBP
almost/RB
certain/JJ
to/TO
arrive/VB
late/RB
./.
At/IN
this/DT
point/NN
,/,
no/DT
other/JJ
America/NNP
West/NNP
flights/NNS
--/:
including/VBG
its/PRP$
new/JJ
service/NN
at/IN
San/NNP
Antonio/NNP
,/,
Texas/NNP
;/:
Newark/NNP
,/,
N.J./NNP
;/:
and/CC
Palmdale/NNP
,/,
Calif./NNP
--/:
have/VBP
been/VBN
affected/VBN
by/IN
the/DT
delays/NNS
in/IN
Boeing/NNP
deliveries/NNS
./.
Nevertheless/RB
,/,
the/DT
company/NN
's/POS
reaction/NN
underscores/VBZ
the/DT
domino/NN
effect/NN
that/IN
a/DT
huge/JJ
manufacturer/NN
such/JJ
as/IN
Boeing/NNP
can/MD
have/VB
on/IN
other/JJ
parts/NNS
of/IN
the/DT
economy/NN
./.
It/PRP
also/RB
is/VBZ
sure/JJ
to/TO
help/VB
the/DT
machinists/NNS
put/VB
added/JJ
pressure/NN
on/IN
the/DT
company/NN
./.
``/``
I/PRP
just/RB
do/VBP
n't/RB
feel/VB
that/IN
the/DT
company/NN
can/MD
really/RB
stand/VB
or/CC
would/MD
want/VB
a/DT
prolonged/JJ
walkout/NN
,/,
''/''
Tom/NNP
Baker/NNP
,/,
president/NN
of/IN
Machinists/NNP
'/POS
District/NNP
751/CD
,/,
said/VBD
in/IN
an/DT
interview/NN
yesterday/NN
./.
``/``
I/PRP
do/VBP
n't/RB
think/VB
their/PRP$
customers/NNS
would/MD
like/VB
it/PRP
very/RB
much/RB
./.
''/''
America/NNP
West/NNP
,/,
though/RB
,/,
is/VBZ
a/DT
smaller/JJR
airline/NN
and/CC
therefore/RB
more/RBR
affected/VBN
by/IN
the/DT
delayed/JJ
delivery/NN
of/IN
a/DT
single/JJ
plane/NN
than/IN
many/JJ
of/IN
its/PRP$
competitors/NNS
would/MD
be/VB
./.
``/``
I/PRP
figure/VBP
that/IN
American/NNP
and/CC
United/NNP
probably/RB
have/VBP
such/PDT
a/DT
hard/JJ
time/NN
counting/VBG
all/PDT
the/DT
planes/NNS
in/IN
their/PRP$
fleets/NNS
,/,
they/PRP
might/MD
not/RB
miss/VB
one/CD
at/IN
all/DT
,/,
''/''
Mr./NNP
Otradovec/NNP
said/VBD
./.
Indeed/RB
,/,
a/DT
random/JJ
check/NN
Friday/NNP
did/VBD
n't/RB
seem/VB
to/TO
indicate/VB
that/IN
the/DT
strike/NN
was/VBD
having/VBG
much/JJ
of/IN
an/DT
effect/NN
on/IN
other/JJ
airline/NN
operations/NNS
./.
Southwest/NNP
Airlines/NNP
has/VBZ
a/DT
Boeing/NNP
737-300/NNP
set/NN
for/IN
delivery/NN
at/IN
the/DT
end/NN
of/IN
this/DT
month/NN
and/CC
expects/VBZ
to/TO
have/VB
the/DT
plane/NN
on/IN
time/NN
./.
``/``
It/PRP
's/VBZ
so/RB
close/RB
to/TO
completion/NN
,/,
Boeing/NNP
's/VBZ
told/VBN
us/PRP
there/EX
wo/MD
n't/RB
be/VB
a/DT
problem/NN
,/,
''/''
said/VBD
a/DT
Southwest/NNP
spokesman/NN
./.
A/DT
spokesman/NN
for/IN
AMR/NNP
Corp./NNP
said/VBD
Boeing/NNP
has/VBZ
assured/VBN
American/NNP
Airlines/NNP
it/PRP
will/MD
deliver/VB
a/DT
757/NNP
on/IN
time/NN
later/RB
this/DT
month/NN
./.
American/NNP
is/VBZ
preparing/VBG
to/TO
take/VB
delivery/NN
of/IN
another/DT
757/NNP
in/IN
early/JJ
December/NNP
and/CC
20/CD
more/JJR
next/JJ
year/NN
and/CC
is/VBZ
n't/RB
anticipating/VBG
any/DT
changes/NNS
in/IN
that/DT
timetable/NN
./.
In/IN
Seattle/NNP
,/,
a/DT
Boeing/NNP
spokesman/NN
explained/VBD
that/IN
the/DT
company/NN
has/VBZ
been/VBN
in/IN
constant/JJ
communication/NN
with/IN
all/DT
of/IN
its/PRP$
customers/NNS
and/CC
that/IN
it/PRP
was/VBD
impossible/JJ
to/TO
predict/VB
what/WP
further/JJ
disruptions/NNS
might/MD
be/VB
triggered/VBN
by/IN
the/DT
strike/NN
./.
Meanwhile/RB
,/,
supervisors/NNS
and/CC
non-striking/JJ
employees/NNS
have/VBP
been/VBN
trying/VBG
to/TO
finish/VB
some/RB
40/CD
aircraft/NNS
--/:
mostly/RB
747/NNP
and/CC
767/NNP
jumbo/JJ
jets/NNS
at/IN
the/DT
company/NN
's/POS
Everett/NNP
,/,
Wash./NNP
,/,
plant/NN
--/:
that/WDT
were/VBD
all/RB
but/RB
completed/VBN
before/IN
the/DT
walkout/NN
./.
As/IN
of/IN
Friday/NNP
,/,
four/CD
had/VBD
been/VBN
delivered/VBN
and/CC
a/DT
fifth/JJ
plane/NN
,/,
a/DT
747-400/NNP
,/,
was/VBD
supposed/VBN
to/TO
be/VB
flown/VBN
out/RP
over/IN
the/DT
weekend/NN
to/TO
Air/NNP
China/NNP
./.
No/DT
date/NN
has/VBZ
yet/RB
been/VBN
set/VBN
to/TO
get/VB
back/RB
to/TO
the/DT
bargaining/NN
table/NN
./.
``/``
We/PRP
want/VBP
to/TO
make/VB
sure/JJ
they/PRP
know/VBP
what/WP
they/PRP
want/VBP
before/IN
they/PRP
come/VBP
back/RP
,/,
''/''
said/VBD
Doug/NNP
Hammond/NNP
,/,
the/DT
federal/JJ
mediator/NN
who/WP
has/VBZ
been/VBN
in/IN
contact/NN
with/IN
both/DT
sides/NNS
since/IN
the/DT
strike/NN
began/VBD
./.
The/DT
investment/NN
community/NN
,/,
for/IN
one/CD
,/,
has/VBZ
been/VBN
anticipating/VBG
a/DT
speedy/JJ
resolution/NN
./.
Though/NNP
Boeing/NNP
's/POS
stock/NN
price/NN
was/VBD
battered/VBN
along/IN
with/IN
the/DT
rest/NN
of/IN
the/DT
market/NN
Friday/NNP
,/,
it/PRP
actually/RB
has/VBZ
risen/VBN
over/IN
the/DT
last/JJ
two/CD
weeks/NNS
on/IN
the/DT
strength/NN
of/IN
new/JJ
orders/NNS
./.
``/``
The/DT
market/NN
has/VBZ
taken/VBN
two/CD
views/NNS
:/:
that/IN
the/DT
labor/NN
situation/NN
will/MD
get/VB
settled/VBN
in/IN
the/DT
short/JJ
term/NN
and/CC
that/IN
things/NNS
look/VBP
very/RB
rosy/JJ
for/IN
Boeing/NNP
in/IN
the/DT
long/JJ
term/NN
,/,
''/''
said/VBD
Howard/NNP
Rubel/NNP
,/,
an/DT
analyst/NN
at/IN
Cyrus/NNP
J./NNP
Lawrence/NNP
Inc/NNP
./.
Boeing/NNP
's/POS
shares/NNS
fell/VBD
$/$
4/CD
Friday/NNP
to/TO
close/VB
at/IN
$/$
57.375/CD
in/IN
composite/JJ
trading/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
./.
But/CC
Mr./NNP
Baker/NNP
said/VBD
he/PRP
thinks/VBZ
the/DT
earliest/RBS
a/DT
pact/NN
could/MD
be/VB
struck/VBN
would/MD
be/VB
the/DT
end/NN
of/IN
this/DT
month/NN
,/,
hinting/VBG
that/IN
the/DT
company/NN
and/CC
union/NN
may/MD
resume/VB
negotiations/NNS
as/RB
early/RB
as/IN
this/DT
week/NN
./.
Still/RB
,/,
he/PRP
said/VBD
,/,
it/PRP
's/VBZ
possible/JJ
that/IN
the/DT
strike/NN
could/MD
last/VB
considerably/RB
longer/RBR
./.
``/``
I/PRP
would/MD
n't/RB
expect/VB
an/DT
immediate/JJ
resolution/NN
to/TO
anything/NN
./.
''/''
Last/JJ
week/NN
,/,
Boeing/NNP
Chairman/NNP
Frank/NNP
Shrontz/NNP
sent/VBD
striking/VBG
workers/NNS
a/DT
letter/NN
,/,
saying/VBG
that/IN
``/``
to/TO
my/PRP$
knowledge/NN
,/,
Boeing/NNP
's/POS
offer/NN
represents/VBZ
the/DT
best/JJS
overall/JJ
three-year/JJ
contract/NN
of/IN
any/DT
major/JJ
U.S./NNP
industrial/JJ
firm/NN
in/IN
recent/JJ
history/NN
./.
''/''
But/CC
Mr./NNP
Baker/NNP
called/VBD
the/DT
letter/NN
--/:
and/CC
the/DT
company/NN
's/POS
offer/NN
of/IN
a/DT
10/CD
%/NN
wage/NN
increase/NN
over/IN
the/DT
life/NN
of/IN
the/DT
pact/NN
,/,
plus/CC
bonuses/NNS
--/:
``/``
very/RB
weak/JJ
./.
''/''
He/PRP
added/VBD
that/IN
the/DT
company/NN
miscalculated/VBD
the/DT
union/NN
's/POS
resolve/NN
and/CC
the/DT
workers/NNS
'/POS
disgust/NN
with/IN
being/VBG
forced/VBN
to/TO
work/VB
many/JJ
hours/NNS
overtime/RB
./.
In/IN
separate/JJ
developments/NNS
:/:
--/:
Talks/NNS
have/VBP
broken/VBN
off/RP
between/IN
Machinists/NNPS
representatives/NNS
at/IN
Lockheed/NNP
Corp./NNP
and/CC
the/DT
Calabasas/NNP
,/,
Calif./NNP
,/,
aerospace/NN
company/NN
./.
The/DT
union/NN
is/VBZ
continuing/VBG
to/TO
work/VB
through/IN
its/PRP$
expired/JJ
contract/NN
,/,
however/RB
./.
It/PRP
had/VBD
planned/VBN
a/DT
strike/NN
vote/NN
for/IN
next/JJ
Sunday/NNP
,/,
but/CC
that/IN
has/VBZ
been/VBN
pushed/VBN
back/RP
indefinitely/RB
./.
--/:
United/NNP
Auto/NNP
Workers/NNP
Local/NNP
1069/NNP
,/,
which/WDT
represents/VBZ
3,000/CD
workers/NNS
at/IN
Boeing/NNP
's/POS
helicopter/NN
unit/NN
in/IN
Delaware/NNP
County/NNP
,/,
Pa./NNP
,/,
said/VBD
it/PRP
agreed/VBD
to/TO
extend/VB
its/PRP$
contract/NN
on/IN
a/DT
day-by-day/JJ
basis/NN
,/,
with/IN
a/DT
10-day/JJ
notification/NN
to/TO
cancel/VB
,/,
while/IN
it/PRP
continues/VBZ
bargaining/VBG
./.
The/DT
accord/NN
expired/VBD
yesterday/NN
./.
--/:
And/CC
Boeing/NNP
on/IN
Friday/NNP
said/VBD
it/PRP
received/VBD
an/DT
order/NN
from/IN
Martinair/NNP
Holland/NNP
for/IN
four/CD
model/JJ
767-300/NNP
wide-body/JJ
jetliners/NNS
valued/VBN
at/IN
a/DT
total/NN
of/IN
about/RB
$/$
326/CD
million/CD
./.
The/DT
planes/NNS
,/,
long/JJ
range/NN
versions/NNS
of/IN
the/DT
medium-haul/JJ
twin-jet/NN
,/,
will/MD
be/VB
delivered/VBN
with/IN
Pratt/NNP
&/CC
Whitney/NNP
PW4060/NNP
engines/NNS
./.
Pratt/NNP
&/CC
Whitney/NNP
is/VBZ
a/DT
unit/NN
of/IN
United/NNP
Technologies/NNP
Inc/NNP
./.
Martinair/NNP
Holland/NNP
is/VBZ
based/VBN
in/IN
Amsterdam/NNP
./.
A/DT
Boeing/NNP
spokeswoman/NN
said/VBD
a/DT
delivery/NN
date/NN
for/IN
the/DT
planes/NNS
is/VBZ
still/RB
being/VBG
worked/VBD
out/RP
``/``
for/IN
a/DT
variety/NN
of/IN
reasons/NNS
,/,
but/CC
not/RB
because/IN
of/IN
the/DT
strike/NN
./.
''/''
Bridget/NNP
O'Brian/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Atco/NNP
Ltd./NNP
said/VBD
its/PRP$
utilities/NNS
arm/NN
is/VBZ
considering/VBG
building/VBG
new/JJ
electric/JJ
power/NN
plants/NNS
,/,
some/DT
valued/VBN
at/IN
more/JJR
than/IN
one/CD
billion/CD
Canadian/JJ
dollars/NNS
US$/$
851/CD
million/CD
Great/NNP
Britain/NNP
and/CC
elsewhere/RB
./.
C.S./NNP
Richardson/NNP
,/,
Atco/NNP
's/POS
senior/JJ
vice/NN
president/NN
,/,
finance/NN
,/,
said/VBD
its/PRP$
50.1%-owned/JJ
Canadian/NNP
Utilities/NNP
Ltd./NNP
unit/NN
is/VBZ
reviewing/VBG
cogeneration/NN
projects/NNS
in/IN
eastern/JJ
Canada/NNP
,/,
and/CC
conventional/JJ
electric/JJ
power/NN
generating/NN
plants/NNS
elsewhere/RB
,/,
including/VBG
Britain/NNP
,/,
where/WRB
the/DT
British/JJ
government/NN
plans/NNS
to/TO
allow/VB
limited/JJ
competition/NN
in/IN
electrical/JJ
generation/NN
from/IN
private-sector/JJ
suppliers/NNS
as/IN
part/NN
of/IN
its/PRP$
privatization/NN
program/NN
./.
``/``
The/DT
projects/NNS
are/VBP
big/JJ
./.
They/PRP
can/MD
be/VB
C$/$
1/CD
billion/CD
plus/RB
,/,
''/''
Mr./NNP
Richardson/NNP
said/VBD
./.
``/``
But/CC
we/PRP
would/MD
n't/RB
go/VB
into/IN
them/PRP
alone/RB
,/,
''/''
and/CC
Canadian/NNP
Utilities/NNP
'/POS
equity/NN
stake/NN
would/MD
be/VB
small/JJ
,/,
he/PRP
said/VBD
./.
``/``
Ideally/RB
,/,
we/PRP
'd/MD
like/VB
to/TO
be/VB
the/DT
operator/NN
the/DT
project/NN
a/DT
modest/JJ
equity/NN
investor/NN
./.
Our/PRP$
long/JJ
suit/NN
is/VBZ
our/PRP$
proven/JJ
ability/NN
to/TO
operate/VB
''/''
power/NN
plants/NNS
,/,
he/PRP
said/VBD
./.
Mr./NNP
Richardson/NNP
would/MD
n't/RB
offer/VB
specifics/NNS
regarding/VBG
Atco/NNP
's/VBZ
proposed/VBN
British/JJ
project/NN
,/,
but/CC
he/PRP
said/VBD
it/PRP
would/MD
compete/VB
for/IN
customers/NNS
with/IN
two/CD
huge/JJ
British/JJ
power/NN
generating/NN
companies/NNS
that/WDT
would/MD
be/VB
formed/VBN
under/IN
the/DT
country/NN
's/POS
plan/NN
to/TO
privatize/VB
its/PRP$
massive/JJ
water/NN
and/CC
electric/JJ
utilities/NNS
./.
Britain/NNP
's/POS
government/NN
plans/VBZ
to/TO
raise/VB
about/RB
#/#
20/CD
billion/CD
$/$
31.05/CD
billion/CD
the/DT
sale/NN
of/IN
most/JJS
of/IN
its/PRP$
giant/JJ
water/NN
and/CC
electric/JJ
utilities/NNS
,/,
beginning/VBG
next/JJ
month/NN
./.
The/DT
planned/JJ
electric/JJ
utility/NN
sale/NN
,/,
scheduled/VBN
for/IN
next/JJ
year/NN
,/,
is/VBZ
alone/RB
expected/VBN
to/TO
raise/VB
#/#
13/CD
billion/CD
,/,
making/VBG
it/PRP
the/DT
world/NN
's/POS
largest/JJS
public/JJ
offering/NN
./.
Under/IN
terms/NNS
of/IN
the/DT
plan/NN
,/,
independent/JJ
generators/NNS
would/MD
be/VB
able/JJ
to/TO
compete/VB
for/IN
15/CD
%/NN
of/IN
customers/NNS
until/IN
1994/CD
,/,
and/CC
for/IN
another/DT
10/CD
%/NN
between/IN
1994/CD
and/CC
1998/CD
./.
Canadian/NNP
Utilities/NNP
had/VBD
1988/CD
revenue/NN
of/IN
C$/$
1.16/CD
billion/CD
,/,
mainly/RB
from/IN
its/PRP$
natural/JJ
gas/NN
and/CC
electric/JJ
utility/NN
businesses/NNS
in/IN
Alberta/NNP
,/,
where/WRB
the/DT
company/NN
serves/VBZ
about/RB
800,000/CD
customers/NNS
./.
``/``
There/EX
seems/VBZ
to/TO
be/VB
a/DT
move/NN
around/IN
the/DT
world/NN
to/TO
deregulate/VB
the/DT
generation/NN
of/IN
electricity/NN
,/,
''/''
Mr./NNP
Richardson/NNP
said/VBD
,/,
and/CC
Canadian/NNP
Utilities/NNP
hopes/VBZ
to/TO
capitalize/VB
on/IN
it/PRP
./.
``/``
This/DT
is/VBZ
a/DT
real/JJ
thrust/NN
on/IN
our/PRP$
utility/NN
side/NN
,/,
''/''
he/PRP
said/VBD
,/,
adding/VBG
that/IN
Canadian/NNP
Utilities/NNP
is/VBZ
also/RB
mulling/VBG
projects/NNS
in/IN
underdeveloped/JJ
countries/NNS
,/,
though/IN
he/PRP
would/MD
be/VB
specific/JJ
./.
Canadian/NNP
Utilities/NNP
is/VBZ
n't/RB
alone/RB
in/IN
exploring/VBG
power/NN
generation/NN
opportunities/NNS
in/IN
Britain/NNP
,/,
in/IN
anticipation/NN
of/IN
the/DT
privatization/NN
program/NN
./.
``/``
We/PRP
're/VBP
certainly/RB
looking/VBG
at/IN
some/DT
power/NN
generating/NN
projects/NNS
in/IN
England/NNP
,/,
''/''
said/VBD
Bruce/NNP
Stram/NNP
,/,
vice/NN
president/NN
,/,
corporate/JJ
strategy/NN
and/CC
corporate/JJ
planning/NN
,/,
with/IN
Enron/NNP
Corp./NNP
,/,
Houston/NNP
,/,
a/DT
big/JJ
natural/JJ
gas/NN
producer/NN
and/CC
pipeline/NN
operator/NN
./.
Mr./NNP
Stram/NNP
said/VBD
Enron/NNP
is/VBZ
considering/VBG
building/VBG
gas-fired/JJ
power/NN
plants/NNS
in/IN
the/DT
U.K./NNP
capable/JJ
of/IN
producing/VBG
about/RB
500/CD
megawatts/NNS
of/IN
power/NN
at/IN
a/DT
cost/NN
of/IN
about/RB
$/$
300/CD
million/CD
to/TO
$/$
400/CD
million/CD
./.
PSE/NNP
Inc./NNP
said/VBD
it/PRP
expects/VBZ
to/TO
report/VB
third/JJ
earnings/NNS
of/IN
$/$
1.3/CD
million/CD
to/TO
$/$
1.7/CD
million/CD
,/,
or/CC
14/CD
cents/NNS
to/TO
18/CD
cents/NNS
a/DT
share/NN
./.
In/IN
the/DT
year-ago/JJ
quarter/NN
,/,
the/DT
designer/NN
and/CC
operator/NN
of/IN
cogeneration/NN
and/CC
waste/NN
heat/NN
recovery/NN
plants/NNS
had/VBD
net/JJ
income/NN
of/IN
$/$
326,000/CD
,/,
or/CC
four/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
about/RB
$/$
41.4/CD
million/CD
./.
The/DT
company/NN
said/VBD
the/DT
improvement/NN
is/VBZ
related/VBN
to/TO
additional/JJ
cogeneration/NN
facilities/NNS
that/WDT
have/VBP
been/VBN
put/VBN
into/IN
operation/NN
./.
CONCORDE/NNP
trans-Atlantic/JJ
flights/NNS
are/VBP
$/$
2,400/CD
to/TO
Paris/NNP
and/CC
$/$
3,200/CD
to/TO
London/NNP
./.
In/IN
a/DT
Centennial/NNP
Journal/NNP
article/NN
Oct./NNP
5/CD
,/,
the/DT
fares/NNS
were/VBD
reversed/VBN
./.
Centennial/NNP
Journal/NNP
:/:
100/CD
Years/NNS
in/IN
Business/NN
--/:
Look/VB
,/,
Up/IN
in/IN
the/DT
Sky/NNP
,/,
It/PRP
's/VBZ
a/DT
.../:
SST/NNP
,/,
1969/CD
''/''
--/:
WSJ/NNP
Oct./NNP
5/CD
,/,
1989/CD
)/)
Diamond/NNP
Shamrock/NNP
Offshore/NNP
Partners/NNP
said/VBD
it/PRP
had/VBD
discovered/VBN
gas/NN
offshore/RB
Louisiana/NNP
./.
The/DT
well/RB
flowed/VBD
at/IN
a/DT
rate/NN
of/IN
2.016/CD
million/CD
cubic/JJ
feet/NNS
of/IN
gas/NN
a/DT
day/NN
through/IN
a/DT
16/CD
64-inch/JJ
opening/NN
at/IN
depths/NNS
between/IN
5,782/CD
and/CC
5,824/CD
feet/NNS
./.
Diamond/NNP
Shamrock/NNP
is/VBZ
the/DT
operator/NN
,/,
with/IN
a/DT
100/CD
%/NN
interest/NN
in/IN
the/DT
well/NN
./.
Diamond/NNP
Shamrock/NNP
Offshore/NNP
's/POS
stock/NN
rose/VBD
12.5/CD
cents/NNS
Friday/NNP
to/TO
close/VB
at/IN
$/$
8.25/CD
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
./.
Kaufman/NNP
&/CC
Broad/NNP
Home/NNP
Corp./NNP
said/VBD
it/PRP
formed/VBD
a/DT
$/$
53.4/CD
million/CD
limited/JJ
partnership/NN
subsidiary/NN
to/TO
buy/VB
land/NN
in/IN
California/NNP
suitable/JJ
for/IN
residential/JJ
development/NN
./.
The/DT
partnership/NN
,/,
Kaufman/NNP
&/CC
Broad/NNP
Land/NNP
Development/NNP
Venture/NNP
Limited/NNP
Partnership/NNP
,/,
is/VBZ
a/DT
50-50/JJ
joint/JJ
venture/NN
with/IN
a/DT
trust/NN
created/VBN
by/IN
institutional/JJ
clients/NNS
of/IN
Heitman/NNP
Advisory/NNP
Corp./NNP
,/,
a/DT
unit/NN
of/IN
Heitman/NNP
Financial/NNP
Corp./NNP
,/,
a/DT
real/JJ
estate/NN
advisory/NN
,/,
management/NN
and/CC
development/NN
company/NN
with/IN
offices/NNS
in/IN
Chicago/NNP
and/CC
Beverly/NNP
Hills/NNP
,/,
Calif/NNP
./.
Kaufman/NNP
&/CC
Broad/NNP
,/,
a/DT
home/NN
building/NN
company/NN
,/,
declined/VBD
to/TO
identify/VB
the/DT
institutional/JJ
investors/NNS
./.
The/DT
land/NN
to/TO
be/VB
purchased/VBN
by/IN
the/DT
joint/JJ
venture/NN
has/VBZ
n't/RB
yet/RB
received/VBD
zoning/NN
and/CC
other/JJ
approvals/NNS
required/VBN
for/IN
development/NN
,/,
and/CC
part/NN
of/IN
Kaufman/NNP
&/CC
Broad/NNP
's/POS
job/NN
will/MD
be/VB
to/TO
obtain/VB
such/JJ
approvals/NNS
./.
The/DT
partnership/NN
runs/VBZ
the/DT
risk/NN
that/IN
it/PRP
may/MD
not/RB
get/VB
the/DT
approvals/NNS
for/IN
development/NN
,/,
but/CC
in/IN
return/NN
,/,
it/PRP
can/MD
buy/VB
land/NN
at/IN
wholesale/JJ
rather/RB
than/IN
retail/JJ
prices/NNS
,/,
which/WDT
can/MD
result/VB
in/IN
sizable/JJ
savings/NNS
,/,
said/VBD
Bruce/NNP
Karatz/NNP
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
Kaufman/NNP
&/CC
Broad/NNP
./.
``/``
There/EX
are/VBP
really/RB
very/RB
few/JJ
companies/NNS
that/WDT
have/VBP
adequate/JJ
capital/NN
to/TO
buy/VB
properties/NNS
in/IN
a/DT
raw/JJ
state/NN
for/IN
cash/NN
./.
Typically/RB
,/,
developers/NNS
option/VBP
property/NN
,/,
and/CC
then/RB
once/IN
they/PRP
get/VBP
the/DT
administrative/JJ
approvals/NNS
,/,
they/PRP
buy/VBP
it/PRP
,/,
''/''
said/VBD
Mr./NNP
Karatz/NNP
,/,
adding/VBG
that/IN
he/PRP
believes/VBZ
the/DT
joint/JJ
venture/NN
is/VBZ
the/DT
first/JJ
of/IN
its/PRP$
kind/NN
./.
``/``
We/PRP
usually/RB
operate/VBP
in/IN
that/DT
conservative/JJ
manner/NN
./.
''/''
By/IN
setting/VBG
up/RP
the/DT
joint/JJ
venture/NN
,/,
Kaufman/NNP
&/CC
Broad/NNP
can/MD
take/VB
the/DT
more/RBR
aggressive/JJ
approach/NN
of/IN
buying/VBG
raw/JJ
land/NN
,/,
while/IN
avoiding/VBG
the/DT
negative/JJ
impacts/NNS
to/TO
its/PRP$
own/JJ
balance/NN
sheet/NN
,/,
Mr./NNP
Karatz/NNP
said/VBD
./.
The/DT
company/NN
is/VBZ
putting/VBG
up/RP
only/RB
10/CD
%/NN
of/IN
the/DT
capital/NN
,/,
although/IN
it/PRP
is/VBZ
responsible/JJ
for/IN
providing/VBG
management/NN
,/,
planning/NN
and/CC
processing/NN
services/NNS
to/TO
the/DT
joint/JJ
venture/NN
./.
``/``
This/DT
is/VBZ
one/CD
of/IN
the/DT
best/JJS
ways/NNS
to/TO
assure/VB
a/DT
pipeline/NN
of/IN
land/NN
to/TO
fuel/VB
our/PRP$
growth/NN
at/IN
a/DT
minimum/JJ
risk/NN
to/TO
our/PRP$
company/NN
,/,
''/''
Mr./NNP
Karatz/NNP
said/VBD
./.
When/WRB
the/DT
price/NN
of/IN
plastics/NNS
took/VBD
off/RP
in/IN
1987/CD
,/,
Quantum/NNP
Chemical/NNP
Corp./NNP
went/VBD
along/RB
for/IN
the/DT
ride/NN
./.
The/DT
timing/NN
of/IN
Quantum/NNP
's/POS
chief/JJ
executive/JJ
officer/NN
,/,
John/NNP
Hoyt/NNP
Stookey/NNP
,/,
appeared/VBD
to/TO
be/VB
nothing/NN
less/RBR
than/IN
inspired/VBN
,/,
because/IN
he/PRP
had/VBD
just/RB
increased/VBN
Quantum/NNP
's/POS
reliance/NN
on/IN
plastics/NNS
./.
The/DT
company/NN
outpaced/VBD
much/JJ
of/IN
the/DT
chemical/JJ
industry/NN
as/IN
annual/JJ
profit/NN
grew/VBD
fivefold/JJ
in/IN
two/CD
years/NNS
./.
Mr./NNP
Stookey/NNP
said/VBD
of/IN
the/DT
boom/NN
,/,
``/``
It/PRP
's/VBZ
going/VBG
to/TO
last/VB
a/DT
whole/JJ
lot/NN
longer/RBR
than/IN
anybody/NN
thinks/VBZ
./.
''/''
But/CC
now/RB
prices/NNS
have/VBP
nose-dived/VBN
and/CC
Quantum/NNP
's/POS
profit/NN
is/VBZ
plummeting/VBG
./.
Some/DT
securities/NNS
analysts/NNS
are/VBP
looking/VBG
for/IN
no/RB
better/JJR
than/IN
break-even/JJ
results/NNS
from/IN
the/DT
company/NN
for/IN
the/DT
third/JJ
quarter/NN
,/,
compared/VBN
with/IN
year-earlier/JJ
profit/NN
of/IN
$/$
99.8/CD
million/CD
,/,
or/CC
$/$
3.92/CD
a/DT
share/NN
,/,
on/IN
sales/NNS
of/IN
$/$
724.4/CD
million/CD
./.
The/DT
stock/NN
,/,
having/VBG
lost/VBN
nearly/RB
a/DT
quarter/NN
of/IN
its/PRP$
value/NN
since/IN
Sept./NNP
1/CD
,/,
closed/VBD
at/IN
$/$
34.375/CD
share/NN
,/,
down/RB
$/$
1.125/CD
,/,
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
Friday/NNP
./.
To/TO
a/DT
degree/NN
,/,
Quantum/NNP
represents/VBZ
the/DT
new/JJ
times/NNS
that/WDT
have/VBP
arrived/VBN
for/IN
producers/NNS
of/IN
the/DT
so-called/JJ
commodity/NN
plastics/NNS
that/WDT
pervade/VBP
modern/JJ
life/NN
./.
Having/VBG
just/RB
passed/VBN
through/IN
one/CD
of/IN
the/DT
most/RBS
profitable/JJ
periods/NNS
in/IN
their/PRP$
history/NN
,/,
these/DT
producers/NNS
now/RB
see/VBP
their/PRP$
prices/NNS
eroding/VBG
./.
Pricing/NN
cycles/NNS
,/,
to/TO
be/VB
sure/JJ
,/,
are/VBP
nothing/NN
new/JJ
for/IN
plastics/NNS
producers/NNS
./.
And/CC
the/DT
financial/JJ
decline/NN
of/IN
some/DT
looks/VBZ
steep/JJ
only/RB
in/IN
comparison/NN
with/IN
the/DT
heady/JJ
period/NN
that/WDT
is/VBZ
just/RB
behind/IN
them/PRP
./.
``/``
We/PRP
were/VBD
all/DT
wonderful/JJ
heroes/NNS
last/JJ
year/NN
,/,
''/''
says/VBZ
an/DT
executive/NN
at/IN
one/CD
of/IN
Quantum/NNP
's/POS
competitors/NNS
./.
``/``
Now/RB
we/PRP
're/VBP
at/IN
the/DT
bottom/NN
of/IN
the/DT
heap/NN
./.
''/''
At/IN
Quantum/NNP
,/,
which/WDT
is/VBZ
based/VBN
in/IN
New/NNP
York/NNP
,/,
the/DT
trouble/NN
is/VBZ
magnified/VBN
by/IN
the/DT
company/NN
's/POS
heavy/JJ
dependence/NN
on/IN
plastics/NNS
./.
Once/RB
known/VBN
as/IN
National/NNP
Distillers/NNP
&/CC
Chemical/NNP
Corp./NNP
,/,
the/DT
company/NN
exited/VBD
the/DT
wine/NN
and/CC
spirits/NNS
business/NN
and/CC
plowed/VBD
more/JJR
of/IN
its/PRP$
resources/NNS
into/IN
plastics/NNS
after/IN
Mr./NNP
Stookey/NNP
took/VBD
the/DT
chief/JJ
executive/NN
's/POS
job/NN
in/IN
1986/CD
./.
Mr./NNP
Stookey/NNP
,/,
59/CD
years/NNS
old/JJ
,/,
declined/VBD
to/TO
be/VB
interviewed/VBN
for/IN
this/DT
article/NN
,/,
but/CC
he/PRP
has/VBZ
consistently/RB
argued/VBN
that/IN
over/IN
the/DT
long/JJ
haul/NN
--/:
across/IN
both/DT
the/DT
peaks/NNS
and/CC
the/DT
troughs/NNS
of/IN
the/DT
plastics/NNS
market/NN
--/:
Quantum/NNP
will/MD
prosper/VB
through/IN
its/PRP$
new/JJ
direction/NN
./.
Quantum/NNP
's/POS
lot/NN
is/VBZ
mostly/RB
tied/VBN
to/TO
polyethylene/NN
resin/NN
,/,
used/VBN
to/TO
make/VB
garbage/NN
bags/NNS
,/,
milk/NN
jugs/NNS
,/,
housewares/NNS
,/,
toys/NNS
and/CC
meat/NN
packaging/NN
,/,
among/IN
other/JJ
items/NNS
./.
In/IN
the/DT
U.S./NNP
polyethylene/NN
market/NN
,/,
Quantum/NNP
has/VBZ
claimed/VBN
the/DT
largest/JJS
share/NN
,/,
about/RB
20/CD
%/NN
./.
But/CC
its/PRP$
competitors/NNS
--/:
including/VBG
Dow/NNP
Chemical/NNP
Co./NNP
,/,
Union/NNP
Carbide/NNP
Corp./NNP
and/CC
several/JJ
oil/NN
giants/NNS
--/:
have/VBP
much/RB
broader/JJR
business/NN
interests/NNS
and/CC
so/RB
are/VBP
better/RBR
cushioned/VBN
against/IN
price/NN
swings/NNS
./.
When/WRB
the/DT
price/NN
of/IN
polyethylene/NN
moves/VBZ
a/DT
mere/JJ
penny/NN
a/DT
pound/NN
,/,
Quantum/NNP
's/POS
annual/JJ
profit/NN
fluctuates/VBZ
by/IN
about/RB
85/CD
cents/NNS
a/DT
share/NN
,/,
provided/VBN
no/DT
other/JJ
variables/NNS
are/VBP
changing/VBG
./.
In/IN
recent/JJ
months/NNS
the/DT
price/NN
of/IN
polyethylene/NN
,/,
even/RB
more/RBR
than/IN
that/DT
of/IN
other/JJ
commodity/NN
plastics/NNS
,/,
has/VBZ
taken/VBN
a/DT
dive/NN
./.
Benchmark/JJ
grades/NNS
,/,
which/WDT
still/RB
sold/VBD
for/IN
as/RB
much/JJ
as/IN
50/CD
cents/NNS
a/DT
pound/NN
last/JJ
spring/NN
,/,
have/VBP
skidded/VBN
to/TO
between/IN
35/CD
cents/NNS
and/CC
40/CD
cents/NNS
./.
Meanwhile/RB
,/,
the/DT
price/NN
of/IN
ethylene/NN
,/,
the/DT
chemical/JJ
building/NN
block/NN
of/IN
polyethylene/NN
,/,
has/VBZ
n't/RB
dropped/VBN
nearly/RB
so/RB
fast/RB
./.
That/DT
discrepancy/NN
hurts/VBZ
Quantum/NNP
badly/RB
,/,
because/IN
its/PRP$
own/JJ
plants/NNS
cover/VBP
only/RB
about/RB
half/NN
of/IN
its/PRP$
ethylene/NN
needs/NNS
./.
By/IN
many/JJ
accounts/NNS
,/,
an/DT
early/JJ
hint/NN
of/IN
a/DT
price/NN
rout/NN
in/IN
the/DT
making/NN
came/VBD
at/IN
the/DT
start/NN
of/IN
this/DT
year/NN
./.
China/NNP
,/,
which/WDT
had/VBD
been/VBN
putting/VBG
in/RP
huge/JJ
orders/NNS
for/IN
polyethylene/NN
,/,
abruptly/RB
halted/VBD
them/PRP
./.
Calculating/VBG
that/DT
excess/JJ
polyethylene/NN
would/MD
soon/RB
be/VB
sloshing/VBG
around/IN
the/DT
world/NN
,/,
other/JJ
buyers/NNS
then/RB
bet/VBD
that/IN
prices/NNS
had/VBD
peaked/JJ
and/CC
so/RB
began/VBD
to/TO
draw/VB
down/RP
inventories/NNS
rather/RB
than/IN
order/VB
new/JJ
product/NN
./.
Kenneth/NNP
Mitchell/NNP
,/,
director/NN
of/IN
Dow/NNP
's/POS
polyethylene/NN
business/NN
,/,
says/VBZ
producers/NNS
were/VBD
surprised/VBN
to/TO
learn/VB
how/WRB
much/RB
inventories/NNS
had/VBD
swelled/VBN
throughout/IN
the/DT
distribution/NN
chain/NN
as/IN
prices/NNS
spiraled/VBD
up/RB
./.
``/``
People/NNS
were/VBD
even/RB
hoarding/VBG
bags/NNS
,/,
''/''
he/PRP
says/VBZ
./.
Now/RB
producers/NNS
hope/VBP
prices/NNS
have/VBP
hit/VBN
bottom/NN
./.
They/PRP
recently/RB
announced/VBD
increases/NNS
of/IN
a/DT
few/JJ
cents/NNS
a/DT
pound/NN
to/TO
take/VB
effect/NN
in/IN
the/DT
next/JJ
several/JJ
weeks/NNS
./.
No/DT
one/NN
knows/VBZ
,/,
however/RB
,/,
whether/IN
the/DT
new/JJ
posted/JJ
prices/NNS
will/MD
stick/VB
once/IN
producers/NNS
and/CC
customers/NNS
start/VBP
to/TO
haggle/VB
./.
One/CD
doubter/NN
is/VBZ
George/NNP
Krug/NNP
,/,
a/DT
chemical-industry/NN
analyst/NN
at/IN
Oppenheimer/NNP
&/CC
Co./NNP
and/CC
a/DT
bear/NN
on/IN
plastics/NNS
stocks/NNS
./.
Noting/VBG
others/NNS
'/POS
estimates/NNS
of/IN
when/WRB
price/NN
increases/NNS
can/MD
be/VB
sustained/VBN
,/,
he/PRP
remarks/VBZ
,/,
``/``
Some/DT
say/VBP
October/NNP
./.
Some/DT
say/VBP
November/NNP
./.
I/PRP
say/VBP
1992/CD
./.
''/''
He/PRP
argues/VBZ
that/IN
efforts/NNS
to/TO
firm/VB
up/RP
prices/NNS
will/MD
be/VB
undermined/VBN
by/IN
producers/NNS
'/POS
plans/NNS
to/TO
expand/VB
production/NN
capacity/NN
./.
A/DT
quick/JJ
turnaround/NN
is/VBZ
crucial/JJ
to/TO
Quantum/NNP
because/IN
its/PRP$
cash/NN
requirements/NNS
remain/VBP
heavy/JJ
./.
The/DT
company/NN
is/VBZ
trying/VBG
to/TO
carry/VB
out/RP
a/DT
three-year/JJ
,/,
$/$
1.3/CD
billion/CD
plant-expansion/JJ
program/NN
started/VBD
this/DT
year/NN
./.
At/IN
the/DT
same/JJ
time/NN
,/,
its/PRP$
annual/JJ
payments/NNS
on/IN
long-term/JJ
debt/NN
will/MD
more/RBR
than/IN
double/VB
from/IN
a/DT
year/NN
ago/RB
to/TO
about/RB
$/$
240/CD
million/CD
,/,
largely/RB
because/IN
of/IN
debt/NN
taken/VBN
on/RP
to/TO
pay/VB
a/DT
$/$
50-a-share/JJ
special/JJ
dividend/NN
earlier/RBR
this/DT
year/NN
./.
Quantum/NNP
described/VBD
the/DT
payout/NN
at/IN
the/DT
time/NN
as/IN
a/DT
way/NN
for/IN
it/PRP
to/TO
share/VB
the/DT
bonanza/NN
with/IN
its/PRP$
holders/NNS
,/,
because/IN
its/PRP$
stock/NN
price/NN
was/VBD
n't/RB
reflecting/VBG
the/DT
huge/JJ
profit/NN
increases/NNS
./.
Some/DT
analysts/NNS
saw/VBD
the/DT
payment/NN
as/IN
an/DT
effort/NN
also/RB
to/TO
dispel/VB
takeover/NN
speculation/NN
./.
Whether/IN
a/DT
cash/NN
crunch/NN
might/MD
eventually/RB
force/VB
the/DT
company/NN
to/TO
cut/VB
its/PRP$
quarterly/JJ
dividend/NN
,/,
raised/VBD
36/CD
%/NN
to/TO
75/CD
cents/NNS
a/DT
share/NN
only/RB
a/DT
year/NN
ago/RB
,/,
has/VBZ
become/VBN
a/DT
topic/NN
of/IN
intense/JJ
speculation/NN
on/IN
Wall/NNP
Street/NNP
since/IN
Mr./NNP
Stookey/NNP
deflected/VBD
dividend/NN
questions/NNS
in/IN
a/DT
Sept./NNP
29/CD
meeting/NN
with/IN
analysts/NNS
./.
Some/DT
viewed/VBD
his/PRP$
response/NN
--/:
that/IN
company/NN
directors/NNS
review/VB
the/DT
dividend/NN
regularly/RB
--/:
as/IN
nothing/NN
more/JJR
than/IN
the/DT
standard/JJ
line/NN
from/IN
executives/NNS
./.
But/CC
others/NNS
came/VBD
away/RB
thinking/VBG
he/PRP
had/VBD
given/VBN
something/NN
less/JJR
than/IN
his/PRP$
usual/JJ
straight-from-the-shoulder/JJ
performance/NN
./.
In/IN
any/DT
case/NN
,/,
on/IN
the/DT
day/NN
of/IN
the/DT
meeting/NN
,/,
Quantum/NNP
's/POS
shares/NNS
slid/VBD
$/$
2.625/CD
to/TO
$/$
36.625/CD
in/IN
Big/NNP
Board/NNP
trading/NN
./.
On/IN
top/NN
of/IN
everything/NN
else/RB
,/,
Quantum/NNP
confronts/VBZ
a/DT
disaster/NN
at/IN
its/PRP$
plant/NN
in/IN
Morris/NNP
,/,
Ill/NNP
./.
After/IN
an/DT
explosion/NN
idled/VBD
the/DT
plant/NN
in/IN
June/NNP
,/,
the/DT
company/NN
progressed/VBD
in/IN
September/NNP
to/TO
within/IN
12/CD
hours/NNS
of/IN
completing/VBG
the/DT
drawn-out/JJ
process/NN
of/IN
restarting/VBG
it/PRP
./.
Then/RB
a/DT
second/JJ
explosion/NN
occurred/VBD
./.
Two/CD
workers/NNS
died/VBD
and/CC
six/CD
remain/VBP
in/IN
the/DT
hospital/NN
./.
This/DT
human/JJ
toll/NN
adds/VBZ
the/DT
most/RBS
painful/JJ
dimension/NN
yet/RB
to/TO
the/DT
sudden/JJ
change/NN
in/IN
Quantum/NNP
's/POS
fortunes/NNS
./.
Until/IN
this/DT
year/NN
,/,
the/DT
company/NN
had/VBD
been/VBN
steadily/RB
lowering/VBG
its/PRP$
accident/NN
rate/NN
and/CC
picking/VBG
up/RP
trade-group/NN
safety/NN
awards/NNS
./.
A/DT
prolonged/JJ
production/NN
halt/NN
at/IN
the/DT
plant/NN
could/MD
introduce/VB
another/DT
imponderable/NN
into/IN
Quantum/NNP
's/POS
financial/JJ
future/NN
./.
When/WRB
a/DT
plant/NN
has/VBZ
just/RB
been/VBN
running/VBG
flat/RB
out/RB
to/TO
meet/VB
demand/NN
,/,
calculating/VBG
lost/JJ
profit/NN
and/CC
thus/RB
claims/NNS
under/IN
business-interruption/JJ
insurance/NN
is/VBZ
straightforward/JJ
./.
But/CC
the/DT
numbers/NNS
become/VBP
trickier/JJR
--/:
and/CC
subject/JJ
to/TO
dickering/NN
between/IN
insured/NN
and/CC
insurer/NN
--/:
when/WRB
demand/NN
is/VBZ
shifting/VBG
./.
``/``
You/PRP
say/VBP
you/PRP
could/MD
have/VB
sold/VBN
X/NN
percent/NN
of/IN
this/DT
product/NN
and/CC
Y/NN
percent/NN
of/IN
that/DT
,/,
''/''
recalls/VBZ
Theodore/NNP
Semegran/NNP
,/,
an/DT
analyst/NN
at/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
who/WP
went/VBD
through/IN
this/DT
exercise/NN
during/IN
his/PRP$
former/JJ
career/NN
as/IN
a/DT
chemical/JJ
engineer/NN
./.
``/``
And/CC
then/RB
you/PRP
still/RB
have/VB
to/TO
negotiate/VB
./.
''/''
Quantum/NNP
hopes/VBZ
the/DT
Morris/NNP
plant/NN
,/,
where/WRB
limited/VBN
production/NN
got/VBD
under/IN
way/NN
last/JJ
week/NN
,/,
will/MD
resume/VB
full/JJ
operation/NN
by/IN
year/NN
's/POS
end/NN
./.
The/DT
plant/NN
usually/RB
accounts/VBZ
for/IN
20/CD
%/NN
to/TO
25/CD
%/NN
of/IN
Quantum/NNP
's/POS
polyethylene/NN
production/NN
and/CC
50/CD
%/NN
of/IN
its/PRP$
ethylene/NN
production/NN
./.
Not/RB
everything/NN
looks/VBZ
grim/JJ
for/IN
Quantum/NNP
./.
The/DT
plant/NN
expansion/NN
should/MD
strengthen/VB
the/DT
company/NN
's/POS
sway/NN
in/IN
the/DT
polyethylene/NN
business/NN
,/,
where/WRB
market/NN
share/NN
is/VBZ
often/RB
taken/VBN
through/IN
sheer/NN
capacity/NN
./.
By/IN
lifting/VBG
ethylene/NN
production/NN
,/,
the/DT
expansion/NN
will/MD
also/RB
lower/VB
the/DT
company/NN
's/POS
raw/JJ
material/NN
costs/NNS
./.
Quantum/NNP
is/VBZ
also/RB
tightening/VBG
its/PRP$
grip/NN
on/IN
its/PRP$
one/CD
large/JJ
business/NN
outside/IN
chemicals/NNS
,/,
propane/NN
marketing/NN
./.
Through/IN
a/DT
venture/NN
with/IN
its/PRP$
investment/NN
banker/NN
,/,
First/NNP
Boston/NNP
Corp./NNP
,/,
Quantum/NNP
completed/VBD
in/IN
August/NNP
an/DT
acquisition/NN
of/IN
Petrolane/NNP
Inc./NNP
in/IN
a/DT
transaction/NN
valued/VBN
at/IN
$/$
1.18/CD
billion/CD
./.
Petrolane/NNP
is/VBZ
the/DT
second-largest/JJ
propane/NN
distributor/NN
in/IN
the/DT
U.S/NNP
./.
The/DT
largest/JJS
,/,
Suburban/NNP
Propane/NNP
,/,
was/VBD
already/RB
owned/VBN
by/IN
Quantum/NNP
./.
Still/RB
,/,
Quantum/NNP
has/VBZ
a/DT
crisis/NN
to/TO
get/VB
past/IN
right/RB
now/RB
./.
Some/DT
analysts/NNS
speculate/VBP
the/DT
weakening/VBG
stock/NN
may/MD
yet/RB
attract/VB
a/DT
suitor/NN
./.
The/DT
name/NN
surfacing/VBG
in/IN
rumors/NNS
is/VBZ
British/NNP
Petroleum/NNP
Co./NNP
,/,
which/WDT
is/VBZ
looking/VBG
to/TO
expand/VB
its/PRP$
polyethylene/NN
business/NN
in/IN
the/DT
U.S/NNP
./.
Asked/VBN
about/IN
a/DT
bid/NN
for/IN
Quantum/NNP
,/,
a/DT
BP/NNP
spokesman/NN
says/VBZ
,/,
``/``
We/PRP
pretty/RB
much/RB
have/VBP
a/DT
policy/NN
of/IN
not/RB
commenting/VBG
on/IN
rumors/NNS
,/,
and/CC
I/PRP
think/VBP
that/IN
falls/VBZ
in/IN
that/DT
category/NN
./.
''/''
RJR/NNP
Nabisco/NNP
Inc./NNP
is/VBZ
disbanding/VBG
its/PRP$
division/NN
responsible/JJ
for/IN
buying/VBG
network/NN
advertising/NN
time/NN
,/,
just/RB
a/DT
month/NN
after/IN
moving/VBG
11/CD
of/IN
the/DT
group/NN
's/POS
14/CD
employees/NNS
to/TO
New/NNP
York/NNP
from/IN
Atlanta/NNP
./.
A/DT
spokesman/NN
for/IN
the/DT
New/NNP
York-based/JJ
food/NN
and/CC
tobacco/NN
giant/NN
,/,
taken/VBN
private/JJ
earlier/RBR
this/DT
year/NN
in/IN
a/DT
$/$
25/CD
billion/CD
leveraged/JJ
buy-out/NN
by/IN
Kohlberg/NNP
Kravis/NNP
Roberts/NNP
&/CC
Co./NNP
,/,
confirmed/VBD
that/IN
it/PRP
is/VBZ
shutting/VBG
down/RP
the/DT
RJR/NNP
Nabisco/NNP
Broadcast/NNP
unit/NN
,/,
and/CC
dismissing/VBG
its/PRP$
14/CD
employees/NNS
,/,
in/IN
a/DT
move/NN
to/TO
save/VB
money/NN
./.
The/DT
spokesman/NN
said/VBD
RJR/NNP
is/VBZ
discussing/VBG
its/PRP$
network-buying/JJ
plans/NNS
with/IN
its/PRP$
two/CD
main/JJ
advertising/NN
firms/NNS
,/,
FCB\/Leber/NNP
Katz/NNP
and/CC
McCann/NNP
Erickson/NNP
./.
``/``
We/PRP
found/VBD
with/IN
the/DT
size/NN
of/IN
our/PRP$
media/NNS
purchases/NNS
that/IN
an/DT
ad/NN
agency/NN
could/MD
do/VB
just/RB
as/RB
good/JJ
a/DT
job/NN
at/IN
significantly/RB
lower/JJR
cost/NN
,/,
''/''
said/VBD
the/DT
spokesman/NN
,/,
who/WP
declined/VBD
to/TO
specify/VB
how/WRB
much/JJ
RJR/NNP
spends/VBZ
on/IN
network/NN
television/NN
time/NN
./.
An/DT
executive/NN
close/RB
to/TO
the/DT
company/NN
said/VBD
RJR/NNP
is/VBZ
spending/VBG
about/RB
$/$
140/CD
million/CD
on/IN
network/NN
television/NN
time/NN
this/DT
year/NN
,/,
down/RB
from/IN
roughly/RB
$/$
200/CD
million/CD
last/JJ
year/NN
./.
The/DT
spokesman/NN
said/VBD
the/DT
broadcast/NN
unit/NN
will/MD
be/VB
disbanded/VBN
Dec./NNP
1/CD
,/,
and/CC
the/DT
move/NN
wo/MD
n't/RB
affect/VB
RJR/NNP
's/POS
print/NN
,/,
radio/NN
and/CC
spot-television/JJ
buying/NN
practices/NNS
./.
The/DT
broadcast/NN
group/NN
had/VBD
been/VBN
based/VBN
in/IN
New/NNP
York/NNP
until/IN
a/DT
year/NN
ago/RB
,/,
when/WRB
RJR/NNP
's/POS
previous/JJ
management/NN
moved/VBD
it/PRP
to/TO
Atlanta/NNP
,/,
the/DT
company/NN
's/POS
headquarters/NN
before/IN
this/DT
summer/NN
./.
One/CD
employee/NN
with/IN
the/DT
group/NN
said/VBD
RJR/NNP
moved/VBD
11/CD
employees/NNS
of/IN
the/DT
group/NN
back/RB
to/TO
New/NNP
York/NNP
in/IN
September/NNP
because/IN
``/``
there/EX
was/VBD
supposed/VBN
to/TO
be/VB
a/DT
future/NN
./.
''/''
He/PRP
said/VBD
the/DT
company/NN
hired/VBD
three/CD
more/JJR
buyers/NNS
for/IN
the/DT
unit/NN
within/IN
the/DT
past/JJ
two/CD
weeks/NNS
,/,
wooing/VBG
them/PRP
from/IN
jobs/NNS
with/IN
advertising/NN
agencies/NNS
./.
The/DT
RJR/NNP
spokesman/NN
said/VBD
the/DT
company/NN
moved/VBD
the/DT
11/CD
employees/NNS
to/TO
New/NNP
York/NNP
last/JJ
month/NN
because/IN
the/DT
group/NN
had/VBD
then/RB
been/VBN
in/IN
the/DT
midst/NN
of/IN
purchasing/VBG
ad/NN
time/NN
for/IN
the/DT
networks/NNS
'/POS
upcoming/JJ
season/NN
./.
``/``
The/DT
studies/NNS
the/DT
unit/NN
he/PRP
said/VBD
./.
The/DT
group/NN
's/POS
president/NN
,/,
Peter/NNP
Chrisanthopoulos/NNP
,/,
was/VBD
n't/RB
in/IN
his/PRP$
office/NN
Friday/NNP
afternoon/NN
to/TO
comment/VB
./.
The/DT
U.S./NNP
,/,
which/WDT
is/VBZ
finalizing/VBG
its/PRP$
steel-import/JJ
quotas/NNS
,/,
is/VBZ
allocating/VBG
a/DT
larger/JJR
share/NN
of/IN
its/PRP$
steel/NN
market/NN
to/TO
developing/JJ
and/CC
newly/RB
industrialized/JJ
countries/NNS
which/WDT
have/VBP
relatively/RB
unsubsidized/JJ
steel/NN
industries/NNS
./.
Meanwhile/RB
,/,
the/DT
U.S./NNP
has/VBZ
negotiated/VBN
a/DT
significant/JJ
cut/NN
in/IN
Japan/NNP
's/POS
steel/NN
quota/NN
,/,
and/CC
made/VBN
only/RB
a/DT
minor/JJ
increase/NN
to/TO
the/DT
steel/NN
allotment/NN
for/IN
the/DT
European/NNP
Community/NNP
./.
Brazil/NNP
,/,
similar/JJ
to/TO
Mexico/NNP
and/CC
South/NNP
Korea/NNP
,/,
is/VBZ
expected/VBN
to/TO
negotiate/VB
a/DT
somewhat/RB
bigger/JJR
share/NN
of/IN
the/DT
U.S./NNP
market/NN
than/IN
it/PRP
had/VBD
under/IN
the/DT
previous/JJ
five-year/JJ
steel/NN
quotas/NNS
,/,
which/WDT
expired/VBD
Sept./NNP
30/CD
./.
Brazil/NNP
and/CC
Venezuela/NNP
are/VBP
the/DT
only/JJ
two/CD
countries/NNS
that/WDT
have/VBP
n't/RB
completed/VBN
steel/NN
talks/NNS
with/IN
the/DT
U.S./NNP
for/IN
the/DT
year/NN
ending/VBG
Oct./NNP
1/CD
,/,
1990/CD
./.
In/IN
recent/JJ
years/NNS
,/,
U.S./NNP
steelmakers/NNS
have/VBP
supplied/VBN
about/RB
80/CD
%/NN
of/IN
the/DT
100/CD
million/CD
tons/NNS
of/IN
steel/NN
used/VBN
annually/RB
by/IN
the/DT
nation/NN
./.
Of/IN
the/DT
remaining/VBG
20/CD
%/NN
needed/VBN
,/,
the/DT
steel-quota/NN
negotiations/NNS
allocate/VBP
about/RB
15/CD
%/NN
to/TO
foreign/JJ
suppliers/NNS
,/,
with/IN
the/DT
difference/NN
supplied/VBN
mainly/RB
by/IN
Canada/NNP
--/:
which/WDT
is/VBZ
n't/RB
included/VBN
in/IN
the/DT
quota/NN
program/NN
./.
Other/JJ
countries/NNS
that/WDT
do/VBP
n't/RB
have/VB
formal/JJ
steel/NN
quotas/NNS
with/IN
the/DT
U.S./NNP
,/,
such/JJ
as/IN
Taiwan/NNP
,/,
Sweden/NNP
and/CC
Argentina/NNP
,/,
also/RB
have/VBP
supplied/VBN
steel/NN
./.
Some/DT
of/IN
these/DT
countries/NNS
have/VBP
in/IN
recent/JJ
years/NNS
made/VBD
informal/JJ
agreements/NNS
with/IN
the/DT
U.S./NNP
that/WDT
are/VBP
similar/JJ
to/TO
quotas/NNS
./.
The/DT
Bush/NNP
administration/NN
earlier/RBR
this/DT
year/NN
said/VBD
it/PRP
would/MD
extend/VB
steel/NN
quotas/NNS
,/,
known/VBN
as/IN
voluntary/JJ
restraint/NN
agreements/NNS
,/,
until/IN
March/NNP
31/CD
,/,
1992/CD
./.
It/PRP
also/RB
said/VBD
it/PRP
would/MD
use/VB
that/DT
two-and-a-half/JJ
year/NN
period/NN
to/TO
work/VB
toward/IN
an/DT
international/JJ
consensus/NN
on/IN
freeing/VBG
up/RP
the/DT
international/JJ
steel/NN
trade/NN
,/,
which/WDT
has/VBZ
been/VBN
notoriously/RB
managed/VBN
,/,
subsidized/VBN
and/CC
protected/VBN
by/IN
governments/NNS
./.
The/DT
U.S./NNP
termed/VBD
its/PRP$
plan/NN
,/,
a/DT
``/``
trade/NN
liberalization/NN
program/NN
,/,
''/''
despite/IN
the/DT
fact/NN
that/IN
it/PRP
is/VBZ
merely/RB
an/DT
extension/NN
./.
Mexico/NNP
,/,
which/WDT
was/VBD
one/CD
of/IN
the/DT
first/JJ
countries/NNS
to/TO
conclude/VB
its/PRP$
steel/NN
talks/NNS
with/IN
the/DT
U.S./NNP
,/,
virtually/RB
doubled/VBD
its/PRP$
quota/NN
to/TO
0.95/CD
%/NN
of/IN
the/DT
U.S./NNP
steel/NN
market/NN
from/IN
0.48/CD
%/NN
under/IN
the/DT
previous/JJ
quotas/NNS
./.
South/NNP
Korea/NNP
,/,
which/WDT
had/VBD
1.9/CD
%/NN
under/IN
the/DT
previous/JJ
quotas/NNS
,/,
is/VBZ
set/VBN
to/TO
get/VB
a/DT
small/JJ
increase/NN
to/TO
about/RB
1.95/CD
%/NN
./.
That/DT
increase/NN
rises/VBZ
to/TO
slightly/RB
more/JJR
than/IN
2/CD
%/NN
of/IN
the/DT
U.S./NNP
market/NN
if/IN
a/DT
joint/JJ
Korean-U.S./NNP
steel/NN
project/NN
is/VBZ
included/VBN
./.
Meanwhile/RB
,/,
Brazil/NNP
is/VBZ
expected/VBN
to/TO
increase/VB
its/PRP$
allowance/NN
from/IN
the/DT
1.43/CD
%/NN
share/NN
it/PRP
has/VBZ
had/VBN
in/IN
recent/JJ
years/NNS
./.
The/DT
EC/NNP
and/CC
Japan/NNP
--/:
the/DT
U.S./NNP
's/POS
largest/JJS
steel/NN
suppliers/NNS
--/:
have/VBP
n't/RB
been/VBN
filling/VBG
their/PRP$
quotas/NNS
to/TO
the/DT
full/JJ
extent/NN
./.
The/DT
EC/NNP
steel/NN
industry/NN
,/,
which/WDT
has/VBZ
been/VBN
coping/VBG
with/IN
strong/JJ
European/JJ
demand/NN
,/,
has/VBZ
been/VBN
supplying/VBG
about/RB
5/CD
%/NN
of/IN
the/DT
U.S./NNP
market/NN
compared/VBN
with/IN
recent/JJ
quotas/NNS
of/IN
about/RB
6.7/CD
%/NN
./.
Japan/NNP
has/VBZ
been/VBN
shipping/VBG
steel/NN
to/TO
total/VB
about/RB
4.5/CD
%/NN
of/IN
the/DT
U.S./NNP
market/NN
compared/VBN
with/IN
a/DT
quota/NN
of/IN
5.9/CD
%/NN
./.
In/IN
the/DT
recent/JJ
talks/NNS
,/,
the/DT
EC/NNP
had/VBD
its/PRP$
quota/NN
increased/VBN
about/RB
300,000/CD
tons/NNS
,/,
to/TO
7/CD
%/NN
of/IN
the/DT
U.S./NNP
market/NN
from/IN
6.7/CD
%/NN
in/IN
1988/CD
./.
But/CC
its/PRP$
quota/NN
has/VBZ
been/VBN
as/RB
high/JJ
as/IN
6.9/CD
%/NN
in/IN
1984/CD
./.
Japan/NNP
,/,
however/RB
,/,
has/VBZ
agreed/VBN
to/TO
cut/VB
its/PRP$
quota/NN
to/TO
about/RB
5/CD
%/NN
from/IN
5.9/CD
%/NN
previously/RB
./.
Japan/NNP
,/,
the/DT
EC/NNP
,/,
Brazil/NNP
,/,
Mexico/NNP
and/CC
South/NNP
Korea/NNP
provide/VBP
about/RB
80/CD
%/NN
of/IN
the/DT
steel/NN
imported/VBN
to/TO
the/DT
U.S./NNP
under/IN
the/DT
quota/NN
program/NN
./.
The/DT
balance/NN
is/VBZ
supplied/VBN
by/IN
a/DT
host/NN
of/IN
smaller/JJR
exporters/NNS
,/,
such/JJ
as/IN
Australia/NNP
and/CC
Venezuela/NNP
./.
The/DT
U.S./NNP
had/VBD
about/RB
an/DT
extra/JJ
2/CD
%/NN
of/IN
the/DT
domestic/JJ
steel/NN
market/NN
to/TO
give/VB
to/TO
foreign/JJ
suppliers/NNS
in/IN
its/PRP$
quota/NN
talks/NNS
./.
That/DT
was/VBD
essentially/RB
made/VBN
up/RP
of/IN
a/DT
1/CD
%/NN
increase/NN
in/IN
the/DT
overall/JJ
quota/NN
program/NN
and/CC
1/CD
%/NN
from/IN
cutting/VBG
Japan/NNP
's/POS
allowance/NN
./.
Negotiators/NNS
from/IN
the/DT
White/NNP
House/NNP
trade/NN
office/NN
will/MD
repeat/VB
these/DT
quota/NN
negotiations/NNS
next/IN
year/NN
when/WRB
they/PRP
will/MD
have/VB
another/DT
1/CD
%/NN
of/IN
the/DT
U.S./NNP
steel/NN
market/NN
to/TO
allocate/VB
./.
These/DT
optional/JJ
1%-a-year/JJ
increases/NNS
to/TO
the/DT
steel/NN
quota/NN
program/NN
are/VBP
built/VBN
into/IN
the/DT
Bush/NNP
administration/NN
's/POS
steel-quota/NN
program/NN
to/TO
give/VB
its/PRP$
negotiators/NNS
leverage/NN
with/IN
foreign/JJ
steel/NN
suppliers/NNS
to/TO
try/VB
to/TO
get/VB
them/PRP
to/TO
withdraw/VB
subsidies/NNS
and/CC
protectionism/NN
from/IN
their/PRP$
own/JJ
steel/NN
industries/NNS
./.
Elcotel/NNP
Inc./NNP
expects/VBZ
fiscal/JJ
second-quarter/JJ
earnings/NNS
to/TO
trail/VB
1988/CD
results/NNS
,/,
but/CC
anticipates/VBZ
that/IN
several/JJ
new/JJ
products/NNS
will/MD
lead/VB
to/TO
a/DT
``/``
much/RB
stronger/JJR
''/''
performance/NN
in/IN
its/PRP$
second/JJ
half/NN
./.
Elcotel/NNP
,/,
a/DT
telecommunications/NN
company/NN
,/,
had/VBD
net/JJ
income/NN
of/IN
$/$
272,000/CD
,/,
or/CC
five/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
its/PRP$
year-earlier/JJ
second/NN
quarter/NN
,/,
ended/VBN
Sept./NNP
30/CD
./.
Revenue/NN
totaled/VBD
$/$
5/CD
million/CD
./.
George/NNP
Pierce/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
said/VBD
in/IN
an/DT
interview/NN
that/IN
earnings/NNS
in/IN
the/DT
most/RBS
recent/JJ
quarter/NN
will/MD
be/VB
about/RB
two/CD
cents/NNS
a/DT
share/NN
on/IN
revenue/NN
of/IN
just/RB
under/IN
$/$
4/CD
million/CD
./.
The/DT
lower/JJR
results/NNS
,/,
Mr./NNP
Pierce/NNP
said/VBD
,/,
reflect/VBP
a/DT
12-month/JJ
decline/NN
in/IN
industry/NN
sales/NNS
of/IN
privately/RB
owned/VBN
pay/NN
telephones/NNS
,/,
Elcotel/NNP
's/POS
primary/JJ
business/NN
./.
Although/IN
Mr./NNP
Pierce/NNP
expects/VBZ
that/IN
line/NN
of/IN
business/NN
to/TO
strengthen/VB
in/IN
the/DT
next/JJ
year/NN
,/,
he/PRP
said/VBD
Elcotel/NNP
will/MD
also/RB
benefit/VB
from/IN
moving/VBG
into/IN
other/JJ
areas/NNS
./.
Foremost/RB
among/IN
those/DT
is/VBZ
the/DT
company/NN
's/POS
entrance/NN
into/IN
the/DT
public/JJ
facsimile/NN
business/NN
,/,
Mr./NNP
Pierce/NNP
said/VBD
./.
Within/IN
the/DT
next/JJ
year/NN
,/,
Elcotel/NNP
expects/VBZ
to/TO
place/VB
10,000/CD
fax/NN
machines/NNS
,/,
made/VBN
by/IN
Minolta/NNP
in/IN
Japan/NNP
,/,
in/IN
hotels/NNS
,/,
municipal/JJ
buildings/NNS
,/,
drugstores/NNS
and/CC
other/JJ
public/JJ
settings/NNS
around/IN
the/DT
country/NN
./.
Elcotel/NNP
will/MD
provide/VB
a/DT
credit-card/NN
reader/NN
for/IN
the/DT
machines/NNS
to/TO
collect/VB
,/,
store/VB
and/CC
forward/VB
billing/NN
data/NNS
./.
Mr./NNP
Pierce/NNP
said/VBD
Elcotel/NNP
should/MD
realize/VB
a/DT
minimum/NN
of/IN
$/$
10/CD
of/IN
recurring/VBG
net/JJ
earnings/NNS
for/IN
each/DT
machine/NN
each/DT
month/NN
./.
Elcotel/NNP
has/VBZ
also/RB
developed/VBN
an/DT
automatic/JJ
call/NN
processor/NN
that/WDT
will/MD
make/VB
further/JJ
use/NN
of/IN
the/DT
company/NN
's/POS
system/NN
for/IN
automating/VBG
and/CC
handling/VBG
credit-card/NN
calls/NNS
and/CC
collect/JJ
calls/NNS
./.
Automatic/JJ
call/NN
processors/NNS
will/MD
provide/VB
that/DT
system/NN
for/IN
virtually/RB
any/DT
telephone/NN
,/,
Mr./NNP
Pierce/NNP
said/VBD
,/,
not/RB
just/RB
phones/VBZ
produced/VBN
by/IN
Elcotel/NNP
./.
The/DT
company/NN
will/MD
also/RB
be/VB
producing/VBG
a/DT
new/JJ
line/NN
of/IN
convenience/NN
telephones/NNS
,/,
which/WDT
do/VBP
n't/RB
accept/VB
coins/NNS
,/,
for/IN
use/NN
in/IN
hotel/NN
lobbies/NNS
,/,
office/NN
lobbies/NNS
,/,
hospitality/NN
lounges/NNS
and/CC
similar/JJ
settings/NNS
./.
Mr./NNP
Pierce/NNP
estimated/VBD
that/IN
the/DT
processors/NNS
and/CC
convenience/NN
phones/NNS
would/MD
produce/VB
about/RB
$/$
5/CD
of/IN
recurring/VBG
net/JJ
earnings/NNS
for/IN
each/DT
machine/NN
each/DT
month/NN
./.
Britain/NNP
's/POS
retail/JJ
price/NN
index/NN
rose/VBD
0.7/CD
%/NN
in/IN
September/NNP
from/IN
August/NNP
and/CC
was/VBD
up/RB
7.6/CD
%/NN
for/IN
the/DT
year/NN
,/,
the/DT
Central/NNP
Statistical/NNP
Office/NNP
said/VBD
./.
Quest/NNP
Medical/NNP
Inc./NNP
said/VBD
it/PRP
adopted/VBD
a/DT
shareholders/NNS
'/POS
rights/NNS
plan/NN
in/IN
which/WDT
rights/NNS
to/TO
purchase/VB
shares/NNS
of/IN
common/JJ
stock/NN
will/MD
be/VB
distributed/VBN
as/IN
a/DT
dividend/NN
to/TO
shareholders/NNS
of/IN
record/NN
as/IN
of/IN
Oct./NNP
23/CD
./.
The/DT
company/NN
said/VBD
the/DT
plan/NN
was/VBD
n't/RB
adopted/VBN
in/IN
response/NN
to/TO
any/DT
known/VBN
offers/NNS
for/IN
Quest/NNP
,/,
a/DT
maker/NN
and/CC
marketer/NN
of/IN
hospital/NN
products/NNS
./.
The/DT
rights/NNS
allow/VBP
shareholders/NNS
to/TO
purchase/VB
Quest/NNP
stock/NN
at/IN
a/DT
discount/NN
if/IN
any/DT
person/NN
or/CC
group/NN
acquires/VBZ
more/JJR
than/IN
15/CD
%/NN
of/IN
the/DT
company/NN
's/POS
common/JJ
stock/NN
or/CC
announces/VBZ
a/DT
tender/NN
offer/NN
./.
Measuring/NN
cups/NNS
may/MD
soon/RB
be/VB
replaced/VBN
by/IN
tablespoons/NNS
in/IN
the/DT
laundry/NN
room/NN
./.
Procter/NNP
&/CC
Gamble/NNP
Co./NNP
plans/VBZ
to/TO
begin/VB
testing/VBG
next/JJ
month/NN
a/DT
superconcentrated/JJ
detergent/NN
that/WDT
will/MD
require/VB
only/RB
a/DT
few/JJ
spoonfuls/NNS
per/IN
washload/NN
./.
The/DT
move/NN
stems/VBZ
from/IN
lessons/NNS
learned/VBN
in/IN
Japan/NNP
where/WRB
local/JJ
competitors/NNS
have/VBP
had/VBD
phenomenal/JJ
success/NN
with/IN
concentrated/JJ
soapsuds/NNS
./.
It/PRP
also/RB
marks/VBZ
P&G/NNP
's/POS
growing/VBG
concern/NN
that/IN
its/PRP$
Japanese/JJ
rivals/NNS
,/,
such/JJ
as/IN
Kao/NNP
Corp./NNP
,/,
may/MD
bring/VB
their/PRP$
superconcentrates/NNS
to/TO
the/DT
U.S/NNP
./.
The/DT
Cincinnati/NNP
consumer-products/NNS
giant/NN
got/VBD
clobbered/VBN
two/CD
years/NNS
ago/RB
in/IN
Japan/NNP
when/WRB
Kao/NNP
introduced/VBD
a/DT
powerful/JJ
detergent/NN
,/,
called/VBN
Attack/NNP
,/,
which/WDT
quickly/RB
won/VBD
a/DT
30/CD
%/NN
stake/NN
in/IN
the/DT
Japanese/JJ
markets/NNS
./.
``/``
They/PRP
do/VBP
n't/RB
want/VB
to/TO
get/VB
caught/VBN
again/RB
,/,
''/''
says/VBZ
one/CD
industry/NN
watcher/NN
./.
Retailers/NNP
in/IN
Phoenix/NNP
,/,
Ariz./NNP
,/,
say/VBP
P&G/NNP
's/POS
new/JJ
powdered/JJ
detergent/NN
--/:
to/TO
be/VB
called/VBN
Cheer/NNP
with/IN
Color/NNP
Guard/NNP
--/:
will/MD
be/VB
on/IN
shelves/NNS
in/IN
that/DT
market/NN
by/IN
early/JJ
November/NNP
./.
A/DT
P&G/NNP
spokeswoman/NN
confirmed/VBD
that/IN
shipments/NNS
to/TO
Phoenix/NNP
started/VBD
late/RB
last/JJ
month/NN
./.
She/PRP
said/VBD
the/DT
company/NN
will/MD
study/VB
results/NNS
from/IN
this/DT
market/NN
before/IN
expanding/VBG
to/TO
others/NNS
./.
Superconcentrates/NNS
are/VBP
n't/RB
entirely/RB
new/JJ
for/IN
P&G/NNP
./.
The/DT
company/NN
introduced/VBD
a/DT
superconcentrated/JJ
Lemon/NNP
Cheer/NNP
in/IN
Japan/NNP
after/IN
watching/VBG
the/DT
success/NN
of/IN
Attack/NNP
./.
When/WRB
Attack/NNP
hit/VBD
the/DT
shelves/NNS
in/IN
1987/CD
,/,
P&G/NNP
's/POS
share/NN
of/IN
the/DT
Japanese/JJ
market/NN
fell/VBD
to/TO
about/RB
8/CD
%/NN
from/IN
more/JJR
than/IN
20/CD
%/NN
./.
With/IN
the/DT
help/NN
of/IN
Lemon/NNP
Cheer/NNP
,/,
P&G/NNP
's/POS
share/NN
is/VBZ
now/RB
estimated/VBN
to/TO
be/VB
12/CD
%/NN
./.
While/IN
the/DT
Japanese/NNPS
have/VBP
embraced/VBN
the/DT
compact/JJ
packaging/NN
and/CC
convenience/NN
of/IN
concentrated/JJ
products/NNS
,/,
the/DT
true/JJ
test/NN
for/IN
P&G/NNP
will/MD
be/VB
in/IN
the/DT
$/$
4/CD
billion/CD
U.S./NNP
detergent/NN
market/NN
,/,
where/WRB
growth/NN
is/VBZ
slow/JJ
and/CC
liquids/NNS
have/VBP
gained/VBN
prominence/NN
over/IN
powders/NNS
./.
The/DT
company/NN
may/MD
have/VB
chosen/VBN
to/TO
market/VB
the/DT
product/NN
under/IN
the/DT
Cheer/NNP
name/NN
since/IN
it/PRP
's/VBZ
already/RB
expanded/VBN
its/PRP$
best-selling/JJ
Tide/NNP
into/IN
16/CD
different/JJ
varieties/NNS
,/,
including/VBG
this/DT
year/NN
's/POS
big/JJ
hit/NN
,/,
Tide/NNP
with/IN
Bleach/NN
./.
With/IN
superconcentrates/NNS
,/,
however/RB
,/,
it/PRP
is/VBZ
n't/RB
always/RB
easy/JJ
to/TO
persuade/VB
consumers/NNS
that/WDT
less/JJR
is/VBZ
more/JJR
;/:
many/JJ
people/NNS
tend/VBP
to/TO
dump/VB
too/RB
much/JJ
detergent/NN
into/IN
the/DT
washing/NN
machine/NN
,/,
believing/VBG
that/IN
it/PRP
takes/VBZ
a/DT
cup/NN
of/IN
powder/NN
to/TO
really/RB
clean/VB
the/DT
laundry/NN
./.
In/IN
the/DT
early/JJ
1980s/NNS
,/,
P&G/NNP
tried/VBD
to/TO
launch/VB
here/RB
a/DT
concentrated/JJ
detergent/NN
under/IN
the/DT
Ariel/NNP
brand/NN
name/NN
that/IN
it/PRP
markets/VBZ
in/IN
Europe/NNP
./.
But/CC
the/DT
product/NN
,/,
which/WDT
was/VBD
n't/RB
as/RB
concentrated/JJ
as/IN
the/DT
new/JJ
Cheer/NNP
,/,
bombed/VBD
in/IN
a/DT
market/NN
test/NN
in/IN
Denver/NNP
and/CC
was/VBD
dropped/VBN
./.
P&G/NNP
and/CC
others/NNS
also/RB
have/VBP
tried/VBN
repeatedly/RB
to/TO
hook/VB
consumers/NNS
on/IN
detergent/NN
and/CC
fabric/NN
softener/NN
combinations/NNS
in/IN
pouches/NNS
,/,
but/CC
they/PRP
have/VBP
n't/RB
sold/VBN
well/RB
,/,
despite/IN
the/DT
convenience/NN
./.
But/CC
P&G/NNP
contends/VBZ
the/DT
new/JJ
Cheer/NNP
is/VBZ
a/DT
unique/JJ
formula/NN
that/WDT
also/RB
offers/VBZ
an/DT
ingredient/NN
that/WDT
prevents/VBZ
colors/NNS
from/IN
fading/VBG
./.
And/CC
retailers/NNS
are/VBP
expected/VBN
to/TO
embrace/VB
the/DT
product/NN
,/,
in/IN
part/NN
because/IN
it/PRP
will/MD
take/VB
up/RP
less/JJR
shelf/NN
space/NN
./.
``/``
When/WRB
shelf/NN
space/NN
was/VBD
cheap/JJ
,/,
bigger/JJR
was/VBD
better/JJR
,/,
''/''
says/VBZ
Hugh/NNP
Zurkuhlen/NNP
,/,
an/DT
analyst/NN
at/IN
Salomon/NNP
Bros/NNP
./.
But/CC
with/IN
so/RB
many/JJ
brands/NNS
vying/VBG
for/IN
space/NN
,/,
that/DT
's/VBZ
no/RB
longer/RBR
the/DT
case/NN
./.
If/IN
the/DT
new/JJ
Cheer/NNP
sells/VBZ
well/RB
,/,
the/DT
trend/NN
toward/IN
smaller/JJR
packaging/NN
is/VBZ
likely/JJ
to/TO
accelerate/VB
as/IN
competitors/NNS
follow/VBP
with/IN
their/PRP$
own/JJ
superconcentrates/NNS
./.
Then/RB
retailers/NNS
``/``
will/MD
probably/RB
push/VB
the/DT
less-established/JJ
he/PRP
says/VBZ
./.
Competition/NN
is/VBZ
bound/JJ
to/TO
get/VB
tougher/JJR
if/IN
Kao/NNP
introduces/VBZ
a/DT
product/NN
like/IN
Attack/NNP
in/IN
the/DT
U.S/NNP
./.
To/TO
be/VB
sure/JJ
,/,
Kao/NNP
would/MD
n't/RB
have/VB
an/DT
easy/JJ
time/NN
taking/VBG
U.S./NNP
market/NN
share/NN
away/RB
from/IN
the/DT
mighty/JJ
P&G/NNP
,/,
which/WDT
has/VBZ
about/RB
23/CD
%/NN
of/IN
the/DT
market/NN
./.
Kao/NNP
officials/NNS
previously/RB
have/VBP
said/VBN
they/PRP
are/VBP
interested/JJ
in/IN
selling/VBG
detergents/NNS
in/IN
the/DT
U.S./NNP
,/,
but/CC
so/RB
far/RB
the/DT
company/NN
has/VBZ
focused/VBN
on/IN
acquisitions/NNS
,/,
such/JJ
as/IN
last/JJ
year/NN
's/POS
purchase/NN
of/IN
Andrew/NNP
Jergens/NNP
Co./NNP
,/,
a/DT
Cincinnati/NNP
hand-lotion/NN
maker/NN
./.
It/PRP
also/RB
has/VBZ
a/DT
product-testing/NN
facility/NN
in/IN
California/NNP
./.
Some/DT
believe/VBP
P&G/NNP
's/POS
interest/NN
in/IN
a/DT
superconcentrated/JJ
detergent/NN
goes/VBZ
beyond/IN
the/DT
concern/NN
for/IN
the/DT
Japanese/NNPS
./.
``/``
This/DT
is/VBZ
something/NN
P&G/NNP
would/MD
do/VB
with/IN
or/CC
without/IN
Kao/NNP
,/,
''/''
says/VBZ
Mr./NNP
Zurkuhlen/NNP
./.
With/IN
economic/JJ
tension/NN
between/IN
the/DT
U.S./NNP
and/CC
Japan/NNP
worsening/VBG
,/,
many/JJ
Japanese/VBP
had/VBD
feared/VBN
last/JJ
week/NN
's/POS
visit/NN
from/IN
U.S./NNP
Trade/NNP
Representative/NNP
Carla/NNP
Hills/NNP
./.
They/PRP
expected/VBD
a/DT
new/JJ
barrage/NN
of/IN
demands/NNS
that/IN
Japan/NNP
do/VB
something/NN
quickly/RB
to/TO
reduce/VB
its/PRP$
trade/NN
surplus/NN
with/IN
the/DT
U.S/NNP
./.
Instead/RB
,/,
they/PRP
got/VBD
a/DT
discussion/NN
of/IN
the/DT
need/NN
for/IN
the/DT
U.S./NNP
and/CC
Japan/NNP
to/TO
work/VB
together/RB
and/CC
of/IN
the/DT
importance/NN
of/IN
the/DT
long-term/JJ
view/NN
./.
Mrs./NNP
Hills/NNP
'/POS
first/JJ
trip/NN
to/TO
Japan/NNP
as/IN
America/NNP
's/POS
chief/JJ
trade/NN
negotiator/NN
had/VBD
a/DT
completely/RB
different/JJ
tone/NN
from/IN
last/JJ
month/NN
's/POS
visit/NN
by/IN
Commerce/NNP
Secretary/NNP
Robert/NNP
A./NNP
Mosbacher/NNP
./.
Mr./NNP
Mosbacher/NNP
called/VBD
for/IN
concrete/JJ
results/NNS
by/IN
next/JJ
spring/NN
in/IN
negotiations/NNS
over/IN
fundamental/JJ
Japanese/JJ
business/NN
practices/NNS
that/WDT
supposedly/RB
inhibit/VBP
free/JJ
trade/NN
./.
He/PRP
said/VBD
such/JJ
results/NNS
should/MD
be/VB
``/``
measurable/JJ
in/IN
dollars/NNS
and/CC
cents/NNS
''/''
in/IN
reducing/VBG
the/DT
U.S./NNP
trade/NN
deficit/NN
with/IN
Japan/NNP
./.
But/CC
Mrs./NNP
Hills/NNP
,/,
speaking/VBG
at/IN
a/DT
breakfast/NN
meeting/NN
of/IN
the/DT
American/NNP
Chamber/NNP
of/IN
Commerce/NNP
in/IN
Japan/NNP
on/IN
Saturday/NNP
,/,
stressed/VBD
that/IN
the/DT
objective/NN
``/``
is/VBZ
not/RB
to/TO
get/VB
definitive/JJ
action/NN
by/IN
spring/NN
or/CC
summer/NN
,/,
it/PRP
is/VBZ
rather/RB
to/TO
have/VB
a/DT
blueprint/NN
for/IN
action/NN
./.
''/''
She/PRP
added/VBD
that/IN
she/PRP
expected/VBD
``/``
perhaps/RB
to/TO
have/VB
a/DT
down/JJ
payment/NN
.../:
some/DT
small/JJ
step/NN
to/TO
convince/VB
the/DT
American/JJ
people/NNS
and/CC
the/DT
Japanese/JJ
people/NNS
that/IN
we/PRP
're/VBP
moving/VBG
in/IN
earnest/NN
./.
''/''
How/WRB
such/JJ
remarks/NNS
translate/VBP
into/IN
policy/NN
wo/MD
n't/RB
become/VB
clear/JJ
for/IN
months/NNS
./.
American/JJ
and/CC
Japanese/JJ
officials/NNS
offered/VBD
several/JJ
theories/NNS
for/IN
the/DT
difference/NN
in/IN
approach/NN
betwen/NN
Mr./NNP
Mosbacher/NNP
and/CC
Mrs./NNP
Hills/NNP
./.
Many/JJ
called/VBD
it/PRP
simply/RB
a/DT
contrast/NN
in/IN
styles/NNS
./.
But/CC
some/DT
saw/VBD
it/PRP
as/IN
a/DT
classic/JJ
negotiating/NN
tactic/NN
./.
Others/NNS
said/VBD
the/DT
Bush/NNP
administration/NN
may/MD
feel/VB
the/DT
rhetoric/NN
on/IN
both/DT
sides/NNS
is/VBZ
getting/VBG
out/IN
of/IN
hand/NN
./.
And/CC
some/DT
said/VBD
it/PRP
reflected/VBD
the/DT
growing/VBG
debate/NN
in/IN
Washington/NNP
over/IN
pursuing/VBG
free/JJ
trade/NN
with/IN
Japan/NNP
versus/IN
some/DT
kind/NN
of/IN
managed/JJ
trade/NN
./.
Asked/VBD
to/TO
compare/VB
her/PRP
visit/NN
to/TO
Mr./NNP
Mosbacher/NNP
's/POS
,/,
Mrs./NNP
Hills/NNP
replied/VBD
:/:
``/``
I/PRP
did/VBD
n't/RB
hear/VB
every/DT
word/NN
he/PRP
spoke/VBD
,/,
but/CC
as/IN
a/DT
general/JJ
proposition/NN
,/,
I/PRP
think/VBP
we/PRP
have/VBP
a/DT
very/RB
consistent/JJ
trade/NN
strategy/NN
in/IN
the/DT
Bush/NNP
administration/NN
./.
''/''
Yet/RB
more/JJR
than/IN
one/CD
American/JJ
official/NN
who/WP
sat/VBD
in/RP
with/IN
her/PRP
during/IN
three/CD
days/NNS
of/IN
talks/NNS
with/IN
Japanese/JJ
officials/NNS
said/VBD
her/PRP$
tone/NN
often/RB
was/VBD
surprisingly/RB
``/``
conciliatory/JJ
./.
''/''
``/``
I/PRP
think/VBP
my/PRP$
line/NN
has/VBZ
been/VBN
very/RB
consistent/JJ
,/,
''/''
Mrs./NNP
Hills/NNP
said/VBD
at/IN
a/DT
news/NN
conference/NN
Saturday/NNP
afternoon/NN
./.
``/``
I/PRP
am/VBP
painted/VBN
sometimes/RB
as/IN
ferocious/JJ
,/,
perhaps/RB
because/IN
I/PRP
have/VBP
a/DT
ferocious/JJ
list/NN
of/IN
statutes/NNS
to/TO
implement/VB
./.
I/PRP
do/VBP
n't/RB
feel/VB
very/RB
ferocious/JJ
./.
I/PRP
do/VBP
n't/RB
feel/VB
either/CC
hard/JJ
or/CC
soft/JJ
./.
I/PRP
feel/VBP
committed/JJ
to/TO
the/DT
program/NN
of/IN
opening/VBG
markets/NNS
and/CC
expanding/VBG
trade/NN
./.
''/''
When/WRB
she/PRP
met/VBD
the/DT
local/JJ
press/NN
for/IN
the/DT
first/JJ
time/NN
on/IN
Friday/NNP
,/,
Mrs./NNP
Hills/NNP
firmly/RB
reiterated/VBD
the/DT
need/NN
for/IN
progress/NN
in/IN
removing/VBG
barriers/NNS
to/TO
trade/NN
in/IN
forest/NN
products/NNS
,/,
satellites/NNS
and/CC
supercomputers/NNS
,/,
three/CD
areas/NNS
targeted/VBN
under/IN
the/DT
Super/NNP
301/NNP
provision/NN
of/IN
the/DT
1988/CD
trade/NN
bill/NN
./.
She/PRP
highlighted/VBD
exclusionary/JJ
business/NN
practices/NNS
that/IN
the/DT
U.S./NNP
government/NN
has/VBZ
identified/VBN
./.
But/CC
her/PRP$
main/JJ
thrust/NN
was/VBD
to/TO
promote/VB
the/DT
importance/NN
of/IN
world-wide/JJ
free/JJ
trade/NN
and/CC
open/JJ
competition/NN
./.
She/PRP
said/VBD
the/DT
trade/NN
imbalance/NN
was/VBD
mainly/RB
due/JJ
to/TO
macroeconomic/JJ
factors/NNS
and/CC
should/MD
n't/RB
be/VB
tackled/VBN
by/IN
setting/VBG
quantitative/JJ
targets/NNS
./.
At/IN
her/PRP$
news/NN
conference/NN
for/IN
Japanese/JJ
reporters/NNS
,/,
one/CD
economics/NN
journalist/NN
summed/VBD
up/RP
the/DT
Japanese/JJ
sense/NN
of/IN
relief/NN
./.
``/``
My/PRP$
impression/NN
was/VBD
that/IN
you/PRP
would/MD
be/VB
a/DT
scary/JJ
old/JJ
lady/NN
,/,
''/''
he/PRP
said/VBD
,/,
drawing/VBG
a/DT
few/JJ
nervous/JJ
chuckles/NNS
from/IN
his/PRP$
colleagues/NNS
./.
``/``
But/CC
I/PRP
am/VBP
relieved/JJ
to/TO
see/VB
that/IN
you/PRP
are/VBP
beautiful/JJ
and/CC
gentle/JJ
and/CC
intelligent/JJ
and/CC
a/DT
person/NN
of/IN
integrity/NN
./.
''/''
Mrs./NNP
Hills/NNP
'/POS
remarks/NNS
did/VBD
raise/NN
questions/NNS
,/,
at/IN
least/JJS
among/IN
some/DT
U.S./NNP
officials/NNS
,/,
about/IN
what/WP
exactly/RB
her/PRP$
stance/NN
is/VBZ
on/IN
U.S./NNP
access/NN
to/TO
the/DT
Japanese/JJ
semiconductor/NN
market/NN
./.
The/DT
U.S./NNP
share/NN
of/IN
the/DT
Japanese/JJ
market/NN
has/VBZ
been/VBN
stuck/JJ
around/IN
10/CD
%/NN
for/IN
years/NNS
./.
Many/JJ
Americans/NNPS
have/VBP
interpreted/VBN
a/DT
1986/CD
agreement/NN
as/IN
assuring/VBG
U.S./NNP
companies/NNS
a/DT
20/CD
%/NN
share/NN
by/IN
1991/CD
,/,
but/CC
the/DT
Japanese/NNPS
have/VBP
denied/VBN
making/VBG
any/DT
such/JJ
promise/NN
./.
At/IN
one/CD
of/IN
her/PRP$
news/NN
conferences/NNS
,/,
Mrs./NNP
Hills/NNP
said/VBD
,/,
``/``
I/PRP
believe/VBP
we/PRP
can/MD
do/VB
much/RB
better/RBR
than/IN
20/CD
%/NN
./.
''/''
But/CC
she/PRP
stressed/VBD
,/,
``/``
I/PRP
am/VBP
against/IN
managed/JJ
trade/NN
./.
I/PRP
will/MD
not/RB
enter/VB
into/IN
an/DT
agreement/NN
that/WDT
stipulates/VBZ
to/TO
a/DT
percentage/NN
of/IN
the/DT
market/NN
./.
''/''
Traditional/NNP
Industries/NNP
Inc./NNP
said/VBD
it/PRP
expects/VBZ
to/TO
report/VB
a/DT
net/JJ
loss/NN
for/IN
the/DT
fourth/JJ
quarter/NN
that/WDT
ended/VBD
June/NNP
30/CD
and/CC
is/VBZ
seeking/VBG
new/JJ
financing/NN
./.
The/DT
seller/NN
of/IN
photographic/JJ
products/NNS
and/CC
services/NNS
said/VBD
it/PRP
is/VBZ
considering/VBG
a/DT
number/NN
of/IN
financing/NN
alternatives/NNS
,/,
including/VBG
seeking/VBG
increases/NNS
in/IN
its/PRP$
credit/NN
lines/NNS
./.
Traditional/NNP
declined/VBD
to/TO
estimate/VB
the/DT
amount/NN
of/IN
the/DT
loss/NN
and/CC
would/MD
n't/RB
say/VB
if/IN
it/PRP
expects/VBZ
to/TO
show/VB
a/DT
profit/NN
for/IN
the/DT
year/NN
./.
In/IN
the/DT
year/NN
ended/VBN
June/NNP
30/CD
,/,
1988/CD
,/,
Traditional/NNP
reported/VBD
net/JJ
income/NN
of/IN
$/$
4.9/CD
million/CD
,/,
or/CC
$/$
1.21/CD
a/DT
share/NN
./.
The/DT
company/NN
did/VBD
n't/RB
break/VB
out/RP
its/PRP$
fourth-quarter/JJ
results/NNS
./.
In/IN
the/DT
latest/JJS
nine/CD
months/NNS
net/JJ
income/NN
was/VBD
$/$
4.7/CD
million/CD
,/,
or/CC
$/$
1.31/CD
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
44.3/CD
million/CD
./.
Separately/RB
,/,
the/DT
company/NN
said/VBD
it/PRP
would/MD
file/VB
a/DT
delayed/JJ
fiscal-year/NN
report/NN
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
``/``
within/IN
approximately/RB
45/CD
days/NNS
./.
''/''
It/PRP
said/VBD
the/DT
delay/NN
resulted/VBD
from/IN
difficulties/NNS
in/IN
resolving/VBG
its/PRP$
accounting/NN
of/IN
a/DT
settlement/NN
with/IN
the/DT
Federal/NNP
Trade/NNP
Commission/NNP
./.
Under/IN
an/DT
agreement/NN
filed/VBN
in/IN
federal/JJ
court/NN
in/IN
August/NNP
to/TO
settle/VB
FTC/NNP
objections/NNS
to/TO
some/DT
Traditional/NNP
sales/NNS
practices/NNS
,/,
Traditional/NNP
said/VBD
it/PRP
would/MD
establish/VB
a/DT
$/$
250,000/CD
trust/NN
fund/NN
to/TO
provide/VB
refunds/NNS
to/TO
certain/JJ
customers/NNS
./.
Information/NNP
International/NNP
Inc./NNP
said/VBD
it/PRP
was/VBD
sued/VBN
by/IN
a/DT
buyer/NN
of/IN
its/PRP$
computerized/JJ
newspaper-publishing/JJ
system/NN
,/,
alleging/VBG
that/IN
the/DT
company/NN
failed/VBD
to/TO
correct/VB
deficiencies/NNS
in/IN
the/DT
system/NN
./.
A/DT
spokesman/NN
for/IN
Information/NNP
International/NNP
said/VBD
the/DT
lawsuit/NN
by/IN
two/CD
units/NNS
of/IN
Morris/NNP
Communications/NNP
Corp./NNP
seeks/VBZ
restitution/NN
of/IN
the/DT
system/NN
's/VBZ
about/RB
$/$
3/CD
million/CD
purchase/NN
price/NN
and/CC
cancellation/NN
of/IN
a/DT
software/NN
license/NN
provided/VBN
by/IN
the/DT
Morris/NNP
units/NNS
to/TO
Information/NNP
International/NNP
for/IN
alleged/JJ
failure/NN
to/TO
pay/VB
royalties/NNS
./.
Information/NNP
International/NNP
said/VBD
it/PRP
believes/VBZ
that/IN
the/DT
complaints/NNS
,/,
filed/VBN
in/IN
federal/JJ
court/NN
in/IN
Georgia/NNP
,/,
are/VBP
without/IN
merit/NN
./.
Closely/RB
held/VBN
Morris/NNP
Communications/NNP
is/VBZ
based/VBN
in/IN
Augusta/NNP
,/,
Ga/NNP
./.
The/DT
units/NNS
that/WDT
filed/VBD
the/DT
suit/NN
are/VBP
Southeastern/NNP
Newspapers/NNP
Corp./NNP
and/CC
Florida/NNP
Publishing/NNP
Co/NNP
./.
Syms/NNP
Corp./NNP
completed/VBD
the/DT
sale/NN
of/IN
its/PRP$
A./NNP
Sulka/NNP
&/CC
Co./NNP
subsidiary/NN
,/,
a/DT
men/NNS
's/POS
luxury/NN
haberdashery/NN
,/,
to/TO
Luxco/NNP
Investments/NNP
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
./.
As/IN
Syms/NNP
's/POS
``/``
core/JJ
business/NN
of/IN
off-price/JJ
retailing/NN
grows/VBZ
,/,
a/DT
small/JJ
subsidiary/NN
that/WDT
is/VBZ
operationally/RB
unrelated/JJ
becomes/VBZ
a/DT
difficult/JJ
distraction/NN
,/,
''/''
said/VBD
Marcy/NNP
Syms/NNP
,/,
president/NN
of/IN
the/DT
parent/NN
,/,
in/IN
a/DT
statement/NN
./.
A/DT
spokeswoman/NN
said/VBD
Sulka/NNP
operates/VBZ
a/DT
total/NN
of/IN
seven/CD
stores/NNS
in/IN
the/DT
U.S./NNP
and/CC
overseas/RB
./.
Syms/NNS
operates/VBZ
25/CD
off-price/JJ
apparel/NN
stores/NNS
in/IN
the/DT
U.S/NNP
./.
The/DT
oil/NN
industry/NN
's/POS
middling/JJ
profits/NNS
could/MD
persist/VB
through/IN
the/DT
rest/NN
of/IN
the/DT
year/NN
./.
Major/JJ
oil/NN
companies/NNS
in/IN
the/DT
next/JJ
few/JJ
days/NNS
are/VBP
expected/VBN
to/TO
report/VB
much/RB
less/RBR
robust/JJ
earnings/NNS
than/IN
they/PRP
did/VBD
for/IN
the/DT
third/JJ
quarter/NN
a/DT
year/NN
ago/RB
,/,
largely/RB
reflecting/VBG
deteriorating/VBG
chemical/NN
prices/NNS
and/CC
gasoline/NN
profitability/NN
./.
The/DT
gasoline/NN
picture/NN
may/MD
improve/VB
this/DT
quarter/NN
,/,
but/CC
chemicals/NNS
are/VBP
likely/JJ
to/TO
remain/VB
weak/JJ
,/,
industry/NN
executives/NNS
and/CC
analysts/NNS
say/VBP
,/,
reducing/VBG
chances/NNS
that/IN
profits/NNS
could/MD
equal/VB
their/PRP$
year-earlier/JJ
performance/NN
./.
The/DT
industry/NN
is/VBZ
``/``
seeing/VBG
a/DT
softening/NN
somewhat/RB
in/IN
volume/NN
and/CC
certainly/RB
in/IN
price/NN
in/IN
petrochemicals/NNS
,/,
''/''
Glenn/NNP
Cox/NNP
,/,
president/NN
of/IN
Phillips/NNP
Petroleum/NNP
Co./NNP
,/,
said/VBD
in/IN
an/DT
interview/NN
./.
``/``
That/DT
change/NN
will/MD
obviously/RB
impact/VB
third/JJ
and/CC
fourth/JJ
quarter/NN
earnings/NNS
''/''
for/IN
the/DT
industry/NN
in/IN
general/JJ
,/,
he/PRP
added/VBD
./.
He/PRP
did/VBD
n't/RB
forecast/VBN
Phillips/NNP
's/POS
results/NNS
./.
But/CC
securities/NNS
analysts/NNS
say/VBP
Phillips/NNS
will/MD
be/VB
among/IN
the/DT
companies/NNS
hard-hit/JJ
by/IN
weak/JJ
chemical/NN
prices/NNS
and/CC
will/MD
probably/RB
post/VB
a/DT
drop/NN
in/IN
third-quarter/JJ
earnings/NNS
./.
So/RB
,/,
too/RB
,/,
many/JJ
analysts/NNS
predict/VBP
,/,
will/MD
Exxon/NNP
Corp./NNP
,/,
Chevron/NNP
Corp./NNP
and/CC
Amoco/NNP
Corp/NNP
./.
Typical/JJ
is/VBZ
what/WP
happened/VBD
to/TO
the/DT
price/NN
of/IN
ethylene/NN
,/,
a/DT
major/JJ
commodity/NN
chemical/NN
produced/VBN
in/IN
vast/JJ
amounts/NNS
by/IN
many/JJ
oil/NN
companies/NNS
./.
It/PRP
has/VBZ
plunged/VBN
13/CD
%/NN
since/IN
July/NNP
to/TO
around/IN
26/CD
cents/NNS
a/DT
pound/NN
./.
A/DT
year/NN
ago/RB
ethylene/NN
sold/VBD
for/IN
33/CD
cents/NNS
,/,
peaking/VBG
at/IN
about/RB
34/CD
cents/NNS
last/JJ
December/NNP
./.
A/DT
big/JJ
reason/NN
for/IN
the/DT
chemical/NN
price/NN
retreat/NN
is/VBZ
overexpansion/NN
./.
Beginning/VBG
in/IN
mid-1987/NN
,/,
prices/NNS
began/VBD
accelerating/VBG
as/IN
a/DT
growing/VBG
U.S./NNP
economy/NN
and/CC
the/DT
weak/JJ
dollar/NN
spurred/VBD
demand/NN
./.
Companies/NNS
added/VBD
capacity/NN
furiously/RB
./.
Now/RB
,/,
greatly/RB
increased/VBN|JJ
supplies/NNS
are/VBP
on/IN
the/DT
market/NN
,/,
while/IN
the/DT
dollar/NN
is/VBZ
stronger/JJR
,/,
and/CC
domestic/JJ
economic/JJ
growth/NN
is/VBZ
slower/JJR
./.
Third-quarter/JJ
profits/NNS
from/IN
gasoline/NN
were/VBD
weaker/JJR
./.
``/``
Refining/NN
margins/NNS
were/VBD
so/RB
good/JJ
in/IN
the/DT
third/JJ
quarter/NN
of/IN
last/JJ
year/NN
and/CC
generally/RB
not/RB
very/RB
good/JJ
this/DT
year/NN
,/,
''/''
said/VBD
William/NNP
Randol/NNP
,/,
a/DT
securities/NNS
analyst/NN
at/IN
First/NNP
Boston/NNP
Corp/NNP
./.
Oil/NN
company/NN
refineries/NNS
ran/VBD
flat/RB
out/RB
to/TO
prepare/VB
for/IN
a/DT
robust/JJ
holiday/NN
driving/NN
season/NN
in/IN
July/NNP
and/CC
August/NNP
that/WDT
did/VBD
n't/RB
materialize/VB
./.
The/DT
excess/JJ
supply/NN
pushed/VBD
gasoline/NN
prices/NNS
down/RP
in/IN
that/DT
period/NN
./.
In/IN
addition/NN
,/,
crude/JJ
oil/NN
prices/NNS
were/VBD
up/RB
some/DT
from/IN
a/DT
year/NN
earlier/RBR
,/,
further/RB
pressuring/VBG
profitability/NN
./.
Refiners/NNS
say/VBP
margins/NNS
picked/VBD
up/RP
in/IN
September/NNP
,/,
and/CC
many/JJ
industry/NN
officials/NNS
believe/VBP
gasoline/NN
profits/NNS
will/MD
rebound/VB
this/DT
quarter/NN
,/,
though/IN
still/RB
not/RB
to/TO
the/DT
level/NN
of/IN
1988/CD
's/POS
fourth/JJ
quarter/NN
./.
During/IN
the/DT
1988/CD
second/JJ
half/NN
,/,
many/JJ
companies/NNS
posted/VBD
record/JJ
gasoline/NN
and/CC
chemical/NN
profits/NNS
./.
Crude/JJ
oil/NN
production/NN
may/MD
turn/VB
out/RP
to/TO
be/VB
the/DT
most/RBS
surprising/JJ
element/NN
of/IN
companies/NNS
'/POS
earnings/NNS
this/DT
year/NN
./.
Prices/NNS
--/:
averaging/VBG
roughly/RB
$/$
2/CD
a/DT
barrel/NN
higher/JJR
in/IN
the/DT
third/JJ
quarter/NN
than/IN
a/DT
year/NN
earlier/RBR
--/:
have/VBP
stayed/VBN
well/RB
above/IN
most/JJS
companies/NNS
'/POS
expectations/NNS
./.
Demand/NN
has/VBZ
been/VBN
much/RB
stronger/JJR
than/IN
anticipated/VBN
,/,
and/CC
it/PRP
typically/RB
accelerates/VBZ
in/IN
the/DT
fourth/JJ
quarter/NN
./.
``/``
We/PRP
could/MD
see/VB
higher/JJR
oil/NN
prices/NNS
this/DT
year/NN
,/,
''/''
said/VBD
Bryan/NNP
Jacoboski/NNP
,/,
an/DT
analyst/NN
at/IN
PaineWebber/NNP
Inc/NNP
./.
That/DT
will/MD
translate/VB
into/IN
sharply/RB
higher/JJR
production/NN
profits/NNS
,/,
particularly/RB
compared/VBN
with/IN
last/JJ
year/NN
when/WRB
oil/NN
prices/NNS
steadily/RB
fell/VBD
to/TO
below/IN
$/$
13/CD
a/DT
barrel/NN
in/IN
the/DT
fourth/JJ
quarter/NN
./.
While/IN
oil/NN
prices/NNS
have/VBP
been/VBN
better/JJR
than/IN
expected/VBN
,/,
natural/JJ
gas/NN
prices/NNS
have/VBP
been/VBN
worse/JJR
./.
In/IN
the/DT
third/JJ
quarter/NN
,/,
they/PRP
averaged/VBD
about/RB
5/CD
%/NN
less/JJR
than/IN
they/PRP
were/VBD
in/IN
1988/CD
./.
The/DT
main/JJ
reason/NN
remains/VBZ
weather/NN
./.
Last/JJ
summer/NN
was/VBD
notable/JJ
for/IN
a/DT
heat/NN
wave/NN
and/CC
drought/NN
that/WDT
caused/VBD
utilities/NNS
to/TO
burn/VB
more/JJR
natural/JJ
gas/NN
to/TO
feed/VB
increased/JJ
electrical/JJ
demand/NN
from/IN
air/NN
conditioning/NN
use/NN
./.
This/DT
summer/NN
,/,
on/IN
the/DT
other/JJ
hand/NN
,/,
had/VBD
milder/JJR
weather/NN
than/IN
usual/JJ
./.
``/``
We/PRP
've/VBP
been/VBN
very/RB
disappointed/JJ
in/IN
the/DT
performance/NN
of/IN
natural/JJ
gas/NN
prices/NNS
,/,
''/''
said/VBD
Mr./NNP
Cox/NNP
,/,
Phillips/NNP
's/POS
president/NN
./.
``/``
The/DT
lagging/VBG
gas/NN
price/NN
is/VBZ
not/RB
going/VBG
to/TO
assist/VB
fourth/JJ
quarter/NN
performance/NN
as/IN
many/JJ
had/VBD
expected/VBN
./.
''/''
Going/VBG
into/IN
the/DT
fourth/JJ
quarter/NN
,/,
natural/JJ
gas/NN
prices/NNS
are/VBP
anywhere/RB
from/IN
8/CD
%/NN
to/TO
17/CD
%/NN
lower/JJR
than/IN
a/DT
year/NN
earlier/RBR
./.
For/IN
instance/NN
,/,
natural/JJ
gas/NN
currently/RB
produced/VBN
along/IN
the/DT
Gulf/NNP
Coast/NNP
is/VBZ
selling/VBG
on/IN
the/DT
spot/JJ
market/NN
for/IN
around/IN
$/$
1.47/CD
a/DT
thousand/CD
cubic/JJ
feet/NNS
,/,
down/RB
13/CD
%/NN
from/IN
$/$
1.69/CD
a/DT
thousand/CD
cubic/JJ
feet/NNS
a/DT
year/NN
ago/RB
./.
The/DT
Bush/NNP
administration/NN
,/,
trying/VBG
to/TO
blunt/JJ
growing/VBG
demands/NNS
from/IN
Western/NNP
Europe/NNP
for/IN
a/DT
relaxation/NN
of/IN
controls/NNS
on/IN
exports/NNS
to/TO
the/DT
Soviet/JJ
bloc/NN
,/,
is/VBZ
questioning/VBG
whether/IN
Italy/NNP
's/POS
Ing/NNP
./.
C./NNP
Olivetti/NNP
&/CC
Co./NNP
supplied/VBD
militarily/RB
valuable/JJ
technology/NN
to/TO
the/DT
Soviets/NNPS
./.
Most/JJS
of/IN
the/DT
Western/JJ
European/NNP

members/NNS
of/IN
Coordinating/NNP
Committee/NNP
on/IN
Multilateral/NNP
Export/NNP
Controls/NNP
,/,
the/DT
unofficial/JJ
forum/NN
through/IN
which/WDT
the/DT
U.S./NNP
and/CC
its/PRP$
allies/NNS
align/VBP
their/PRP$
export-control/JJ
policies/NNS
,/,
are/VBP
expected/VBN
to/TO
argue/VB
for/IN
more/RBR
liberal/JJ
export/NN
rules/NNS
at/IN
a/DT
meeting/NN
to/TO
be/VB
held/VBN
in/IN
Paris/NNP
Oct./NNP
25/CD
and/CC
26/CD
./.
They/PRP
plan/VBP
to/TO
press/VB
specifically/RB
for/IN
a/DT
relaxation/NN
of/IN
rules/NNS
governing/VBG
exports/NNS
of/IN
machine/NN
tools/NNS
,/,
computers/NNS
and/CC
other/JJ
high-technology/NN
products/NNS
./.
But/CC
the/DT
Bush/NNP
administration/NN
says/VBZ
it/PRP
wants/VBZ
to/TO
see/VB
evidence/NN
that/IN
all/DT
Cocom/NNP
members/NNS
are/VBP
complying/VBG
fully/RB
with/IN
existing/JJ
export-control/JJ
procedures/NNS
before/IN
it/PRP
will/MD
support/VB
further/JJ
liberalization/NN
./.
To/TO
make/VB
its/PRP$
point/NN
,/,
it/PRP
is/VBZ
challenging/VBG
the/DT
Italian/JJ
government/NN
to/TO
explain/VB
reports/NNS
that/IN
Olivetti/NNP
may/MD
have/VB
supplied/VBN
the/DT
Soviet/NNP
Union/NNP
with/IN
sophisticated/JJ
computer-driven/JJ
devices/NNS
that/WDT
could/MD
be/VB
used/VBN
to/TO
build/VB
parts/NNS
for/IN
combat/NN
aircraft/NN
./.
The/DT
London/NNP
Sunday/NNP
Times/NNP
,/,
which/WDT
first/RB
reported/VBD
the/DT
U.S./NNP
concerns/NNS
,/,
cited/VBD
a/DT
U.S./NNP
intelligence/NN
report/NN
as/IN
the/DT
source/NN
of/IN
the/DT
allegations/NNS
that/IN
Olivetti/NNP
exported/VBD
$/$
25/CD
million/CD
in/IN
``/``
embargoed/JJ
,/,
state-of-the-art/JJ
,/,
flexible/JJ
manufacturing/NN
systems/NNS
to/TO
the/DT
Soviet/JJ
aviation/NN
industry/NN
./.
''/''
Olivetti/NNP
reportedly/RB
began/VBD
shipping/VBG
these/DT
tools/NNS
in/IN
1984/CD
./.
A/DT
State/NNP
Department/NNP
spokesman/NN
acknowledged/VBD
that/IN
the/DT
U.S./NNP
is/VBZ
discussing/VBG
the/DT
allegations/NNS
with/IN
the/DT
Italian/JJ
government/NN
and/CC
Cocom/NNP
,/,
but/CC
declined/VBD
to/TO
confirm/VB
any/DT
details/NNS
./.
Italian/JJ
President/NNP
Francesco/NNP
Cossiga/NNP
promised/VBD
a/DT
quick/JJ
investigation/NN
into/IN
whether/IN
Olivetti/NNP
broke/VBD
Cocom/NNP
rules/NNS
./.
President/NNP
Bush/NNP
called/VBD
his/PRP$
attention/NN
to/TO
the/DT
matter/NN
during/IN
the/DT
Italian/JJ
leader/NN
's/POS
visit/NN
here/RB
last/JJ
week/NN
./.
Olivetti/NNP
has/VBZ
denied/VBN
that/IN
it/PRP
violated/VBD
Cocom/NNP
rules/NNS
,/,
asserting/VBG
that/IN
the/DT
reported/JJ
shipments/NNS
were/VBD
properly/RB
licensed/VBN
by/IN
the/DT
Italian/JJ
authorities/NNS
./.
Although/IN
the/DT
legality/NN
of/IN
these/DT
sales/NNS
is/VBZ
still/RB
an/DT
open/JJ
question/NN
,/,
the/DT
disclosure/NN
could/MD
n't/RB
be/VB
better/RBR
timed/VBN
to/TO
support/VB
the/DT
position/NN
of/IN
export-control/JJ
hawks/NNS
in/IN
the/DT
Pentagon/NNP
and/CC
the/DT
intelligence/NN
community/NN
./.
``/``
It/PRP
seems/VBZ
to/TO
me/PRP
that/IN
a/DT
story/NN
like/IN
this/DT
breaks/VBZ
just/RB
before/IN
every/DT
important/JJ
Cocom/NNP
meeting/NN
,/,
''/''
said/VBD
a/DT
Washington/NNP
lobbyist/NN
for/IN
a/DT
number/NN
of/IN
U.S./NNP
computer/NN
companies/NNS
./.
The/DT
Bush/NNP
administration/NN
has/VBZ
sent/VBN
conflicting/JJ
signals/NNS
about/IN
its/PRP$
export-control/JJ
policies/NNS
,/,
reflecting/VBG
unhealed/JJ
divisions/NNS
among/IN
several/JJ
competing/VBG
agencies/NNS
./.
Last/JJ
summer/NN
,/,
Mr./NNP
Bush/NNP
moved/VBD
the/DT
administration/NN
in/IN
the/DT
direction/NN
of/IN
gradual/JJ
liberalization/NN
when/WRB
he/PRP
told/VBD
a/DT
North/NNP
Atlantic/NNP
Treaty/NNP
Organization/NNP
meeting/NN
that/IN
he/PRP
would/MD
allow/VB
some/DT
exceptions/NNS
to/TO
the/DT
Cocom/NNP
embargo/NN
of/IN
strategic/JJ
goods/NNS
./.
But/CC
more/RBR
recently/RB
,/,
the/DT
Pentagon/NNP
and/CC
the/DT
Commerce/NNP
Department/NNP
openly/RB
feuded/VBD
over/IN
the/DT
extent/NN
to/TO
which/WDT
Cocom/NNP
should/MD
liberalize/VB
exports/NNS
of/IN
personal/JJ
computers/NNS
to/TO
the/DT
bloc/NN
./.
However/RB
,/,
these/DT
agencies/NNS
generally/RB
agree/VBP
that/IN
the/DT
West/NNP
should/MD
be/VB
cautious/JJ
about/IN
any/DT
further/JJ
liberalization/NN
./.
``/``
There/EX
's/VBZ
no/DT
evidence/NN
that/IN
the/DT
Soviet/JJ
program/NN
to/TO
(/(
illegally/RB
)/)
acquire/VB
Western/JJ
technology/NN
has/VBZ
diminished/VBN
,/,
''/''
said/VBD
a/DT
State/NNP
Department/NNP
spokesman/NN
./.
Salomon/NNP
Brothers/NNP
International/NNP
Ltd./NNP
,/,
a/DT
British/JJ
subsidiary/NN
of/IN
Salomon/NNP
Inc./NNP
,/,
announced/VBD
it/PRP
will/MD
issue/VB
warrants/NNS
on/IN
shares/NNS
of/IN
Hong/NNP
Kong/NNP
Telecommunications/NNP
Ltd/NNP
./.
The/DT
move/NN
closely/RB
follows/VBZ
a/DT
similar/JJ
offer/NN
by/IN
Salomon/NNP
of/IN
warrants/NNS
for/IN
shares/NNS
of/IN
Hongkong/NNP
&/CC
Shanghai/NNP
Banking/NNP
Corp/NNP
./.
Under/IN
the/DT
latest/JJS
offer/NN
,/,
HK$/$
62.5/CD
million/CD
US$/$
8/CD
million/CD
three-year/JJ
warrants/NNS
will/MD
be/VB
issued/VBN
in/IN
London/NNP
,/,
each/DT
giving/VBG
buyers/NNS
the/DT
right/NN
to/TO
buy/VB
one/CD
Hong/NNP
Kong/NNP
Telecommunications/NNP
share/NN
at/IN
a/DT
price/NN
to/TO
be/VB
determined/VBN
Friday/NNP
./.
The/DT
50/CD
million/CD
warrants/NNS
will/MD
be/VB
priced/VBN
at/IN
HK$/$
1.25/CD
each/DT
and/CC
are/VBP
expected/VBN
to/TO
carry/VB
a/DT
premium/NN
to/TO
the/DT
share/NN
price/NN
of/IN
about/RB
26/CD
%/NN
./.
In/IN
trading/VBG
on/IN
the/DT
Stock/NNP
Exchange/NNP
of/IN
Hong/NNP
Kong/NNP
,/,
the/DT
shares/NNS
closed/VBD
Wednesday/NNP
at/IN
HK$/$
4.80/CD
each/DT
./.
At/IN
this/DT
price/NN
,/,
the/DT
shares/NNS
would/MD
have/VB
to/TO
rise/VB
above/IN
HK$/$
6.05/CD
for/IN
subscribers/NNS
to/TO
Salomon/NNP
's/POS
issue/NN
to/TO
profitably/RB
convert/VB
their/PRP$
warrants/NNS
./.
While/IN
Hong/NNP
Kong/NNP
companies/NNS
have/VBP
in/IN
the/DT
past/NN
issued/VBD
warrants/NNS
on/IN
their/PRP$
own/JJ
shares/NNS
,/,
Salomon/NNP
's/POS
warrants/NNS
are/VBP
the/DT
first/JJ
here/RB
to/TO
be/VB
issued/VBN
by/IN
a/DT
third/JJ
party/NN
./.
Salomon/NNP
will/MD
``/``
cover/VB
''/''
the/DT
warrants/NNS
by/IN
buying/VBG
sufficient/JJ
shares/NNS
,/,
or/CC
options/NNS
to/TO
purchase/NN
shares/NNS
,/,
to/TO
cover/VB
its/PRP$
entire/JJ
position/NN
./.
Bankers/NNS
said/VBD
warrants/NNS
for/IN
Hong/NNP
Kong/NNP
stocks/NNS
are/VBP
attractive/JJ
because/IN
they/PRP
give/VBP
foreign/JJ
investors/NNS
,/,
wary/JJ
of/IN
volatility/NN
in/IN
the/DT
colony/NN
's/POS
stock/NN
market/NN
,/,
an/DT
opportunity/NN
to/TO
buy/VB
shares/NNS
without/IN
taking/VBG
too/RB
great/JJ
a/DT
risk/NN
./.
The/DT
Hong/NNP
Kong/NNP
Telecommunications/NNP
warrants/NNS
should/MD
be/VB
attractive/JJ
to/TO
buyers/NNS
in/IN
Europe/NNP
,/,
the/DT
bankers/NNS
added/VBD
,/,
because/IN
the/DT
group/NN
is/VBZ
one/CD
of/IN
a/DT
handful/NN
of/IN
blue-chip/JJ
stocks/NNS
on/IN
the/DT
Hong/NNP
Kong/NNP
market/NN
that/WDT
has/VBZ
international/JJ
appeal/NN
./.
Financial/NNP
Corp./NNP
of/IN
Santa/NNP
Barbara/NNP
filed/VBD
suit/NN
against/IN
former/JJ
stock/NN
speculator/NN
Ivan/NNP
F./NNP
Boesky/NNP
and/CC
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
,/,
charging/VBG
they/PRP
defrauded/VBD
the/DT
thrift/NN
by/IN
concealing/VBG
their/PRP$
relationship/NN
when/WRB
persuading/VBG
it/PRP
to/TO
buy/VB
$/$
284/CD
million/CD
in/IN
high-yield/JJ
,/,
high-risk/JJ
junk/NN
bonds/NNS
./.
In/IN
a/DT
suit/NN
filed/VBN
in/IN
federal/JJ
court/NN
Thursday/NNP
,/,
the/DT
S&L/NNP
alleged/VBD
that/IN
a/DT
``/``
disproportionate/JJ
number/NN
''/''
of/IN
the/DT
bonds/NNS
it/PRP
purchased/VBD
in/IN
1984/CD
declined/VBD
in/IN
value/NN
./.
Financial/NNP
Corp./NNP
purchased/VBD
the/DT
bonds/NNS
,/,
the/DT
suit/NN
alleged/VBD
,/,
after/IN
Mr./NNP
Boesky/NNP
and/CC
Drexel/NNP
negotiated/VBD
an/DT
agreement/NN
for/IN
Vagabond/NNP
Hotels/NNP
to/TO
purchase/VB
a/DT
51/CD
%/NN
stake/NN
in/IN
the/DT
thrift/NN
for/IN
about/RB
$/$
34/CD
million/CD
./.
Vagabond/NNP
Hotels/NNP
was/VBD
controlled/VBN
by/IN
Mr./NNP
Boesky/NNP
,/,
who/WP
currently/RB
is/VBZ
serving/VBG
a/DT
prison/NN
term/NN
for/IN
securities/NNS
violations/NNS
./.
Officials/NNS
at/IN
Drexel/NNP
said/VBD
they/PRP
had/VBD
n't/RB
seen/VBN
the/DT
suit/NN
and/CC
thus/RB
could/MD
n't/RB
comment/VB
./.
In/IN
addition/NN
to/TO
$/$
33/CD
million/CD
compensatory/JJ
damages/NNS
,/,
the/DT
suit/NN
seeks/VBZ
$/$
100/CD
million/CD
in/IN
punitive/JJ
damages/NNS
./.
Also/RB
named/VBN
in/IN
the/DT
suit/NN
is/VBZ
Ivan/NNP
F./NNP
Boesky/NNP
Corp./NNP
and/CC
Northview/NNP
Corp./NNP
,/,
the/DT
successor/NN
company/NN
to/TO
Vagabonds/NNP
Hotels/NNP
./.
Northview/NNP
officials/NNS
could/MD
n't/RB
be/VB
located/VBN
./.
Financial/NNP
Corp./NNP
said/VBD
it/PRP
agreed/VBD
to/TO
buy/VB
the/DT
bonds/NNS
after/IN
a/DT
representative/NN
of/IN
Ivan/NNP
F./NNP
Boesky/NNP
Corp./NNP
visited/VBD
it/PRP
in/IN
November/NNP
1983/CD
and/CC
said/VBD
Financial/NNP
Corp./NNP
could/MD
improve/VB
its/PRP$
financial/JJ
condition/NN
by/IN
purchasing/VBG
the/DT
bonds/NNS
./.
Shortly/RB
before/IN
the/DT
visit/NN
,/,
Mr./NNP
Boesky/NNP
and/CC
Drexel/NNP
representives/NNS
had/VBD
met/VBN
with/IN
Financial/NNP
Corp./NNP
officials/NNS
and/CC
had/VBD
signed/VBN
a/DT
letter/NN
of/IN
intent/NN
to/TO
acquire/VB
the/DT
51/CD
%/NN
stake/NN
in/IN
the/DT
company/NN
./.
However/RB
,/,
the/DT
agreement/NN
was/VBD
canceled/VBN
in/IN
June/NNP
1984/CD
./.
Financial/NNP
Corp./NNP
purchased/VBD
the/DT
bonds/NNS
in/IN
at/IN
least/JJS
70/CD
different/JJ
transactions/NNS
in/IN
1984/CD
and/CC
since/IN
then/RB
has/VBZ
realized/VBN
$/$
11/CD
million/CD
in/IN
losses/NNS
on/IN
them/PRP
,/,
the/DT
company/NN
said/VBD
./.
Ideal/NNP
Basic/NNP
Industries/NNP
Inc./NNP
said/VBD
its/PRP$
directors/NNS
reached/VBD
an/DT
agreement/NN
in/IN
principle/NN
calling/VBG
for/IN
HOFI/NNP
North/NNP
America/NNP
Inc./NNP
to/TO
combine/VB
its/PRP$
North/JJ
American/JJ
cement/NN
holdings/NNS
with/IN
Ideal/NNP
in/IN
a/DT
transaction/NN
that/WDT
will/MD
leave/VB
Ideal/NNP
's/POS
minority/NN
shareholders/NNS
with/IN
12.8/CD
%/NN
of/IN
the/DT
combined/JJ
company/NN
./.
HOFI/NNP
,/,
the/DT
North/JJ
American/JJ
holding/NN
company/NN
of/IN
Swiss/JJ
concern/NN
Holderbank/NNP
Financiere/NNP
Glaris/NNP
Ltd./NNP
,/,
previously/RB
proposed/VBD
combining/VBG
its/PRP$
100/CD
%/NN
stake/NN
in/IN
St./NNP
Lawrence/NNP
Cement/NNP
Inc./NNP
and/CC
its/PRP$
60/CD
%/NN
stake/NN
in/IN
Dundee/NNP
Cement/NNP
Co./NNP
with/IN
its/PRP$
67/CD
%/NN
stake/NN
in/IN
Ideal/NN
./.
But/CC
HOFI/NNP
's/POS
first/JJ
offer/NN
would/MD
have/VB
given/VBN
Ideal/NNP
's/POS
other/JJ
shareholders/NNS
about/RB
10/CD
%/NN
of/IN
the/DT
combined/JJ
company/NN
./.
Ideal/NNP
's/POS
directors/NNS
rejected/VBD
that/DT
offer/NN
,/,
although/IN
they/PRP
said/VBD
they/PRP
endorsed/VBD
the/DT
merger/NN
proposal/NN
./.
Under/IN
the/DT
agreement/NN
,/,
HOFI/NNP
will/MD
own/VB
87.2/CD
%/NN
of/IN
the/DT
combined/JJ
company/NN
./.
Ideal/NNP
's/POS
current/JJ
operations/NNS
will/MD
represent/VB
about/RB
39.2/CD
%/NN
of/IN
the/DT
combined/JJ
company/NN
./.
The/DT
transaction/NN
is/VBZ
subject/JJ
to/TO
a/DT
definitive/JJ
agreement/NN
and/CC
approval/NN
by/IN
Ideal/NNP
shareholders/NNS
./.
Ideal/NNP
said/VBD
it/PRP
expects/VBZ
to/TO
complete/VB
the/DT
transaction/NN
early/RB
next/JJ
year/NN
./.
While/IN
corn/NN
and/CC
soybean/NN
prices/NNS
have/VBP
slumped/VBN
well/RB
below/IN
their/PRP$
drought-induced/JJ
peaks/NNS
of/IN
1988/CD
,/,
wheat/NN
prices/NNS
remain/VBP
stubbornly/RB
high/JJ
./.
And/CC
they/PRP
're/VBP
likely/JJ
to/TO
stay/VB
that/DT
way/NN
for/IN
months/NNS
to/TO
come/VB
,/,
analysts/NNS
say/VBP
./.
For/IN
one/CD
thing/NN
,/,
even/RB
with/IN
many/JJ
farmers/NNS
planting/VBG
more/JJR
winter/NN
wheat/NN
this/DT
year/NN
than/IN
last/JJ
,/,
tight/JJ
wheat/NN
supplies/NNS
are/VBP
likely/JJ
to/TO
support/VB
prices/NNS
well/RB
into/IN
1990/CD
,/,
the/DT
analysts/NNS
say/VBP
./.
And/CC
if/IN
rain/NN
does/VBZ
n't/RB
fall/VB
soon/RB
across/IN
many/JJ
of/IN
the/DT
Great/NNP
Plains/NNP
'/POS
wheat-growing/JJ
areas/NNS
,/,
yields/NNS
in/IN
the/DT
crop/NN
now/RB
being/VBG
planted/VBN
could/MD
be/VB
reduced/VBN
,/,
further/RB
squeezing/VBG
supplies/NNS
./.
Also/RB
supporting/VBG
prices/NNS
are/VBP
expectations/NNS
that/IN
the/DT
Soviet/NNP
Union/NNP
will/MD
place/VB
substantial/JJ
buying/NN
orders/NNS
over/IN
the/DT
next/JJ
few/JJ
months/NNS
./.
By/IN
next/JJ
May/NNP
31/CD
,/,
stocks/NNS
of/IN
U.S./NNP
wheat/NN
to/TO
be/VB
carried/VBN
over/RP
into/IN
the/DT
next/JJ
season/NN
--/:
before/IN
the/DT
winter/NN
wheat/NN
now/RB
being/VBG
planted/VBN
is/VBZ
harvested/VBN
--/:
are/VBP
projected/VBN
to/TO
drop/VB
to/TO
443/CD
million/CD
bushels/NNS
./.
That/DT
would/MD
be/VB
the/DT
lowest/JJS
level/NN
since/IN
the/DT
early/JJ
1970s/NNS
./.
Stocks/NNS
were/VBD
698/CD
million/CD
bushels/NNS
on/IN
May/NNP
31/CD
of/IN
this/DT
year/NN
./.
In/IN
response/NN
to/TO
dwindling/VBG
domestic/JJ
supplies/NNS
,/,
Agriculture/NNP
Secretary/NNP
Clayton/NNP
Yeutter/NNP
last/JJ
month/NN
said/VBD
the/DT
U.S./NNP
government/NN
would/MD
slightly/RB
increase/VB
the/DT
number/NN
of/IN
acres/NNS
farmers/NNS
can/MD
plant/VB
in/IN
wheat/NN
for/IN
next/JJ
year/NN
and/CC
still/RB
qualify/VB
for/IN
federal/JJ
support/NN
payments/NNS
./.
The/DT
government/NN
estimates/VBZ
that/IN
the/DT
new/JJ
plan/NN
will/MD
boost/VB
production/NN
next/JJ
year/NN
by/IN
about/RB
66/CD
million/CD
bushels/NNS
./.
It/PRP
now/RB
estimates/VBZ
production/NN
for/IN
next/JJ
year/NN
at/IN
just/RB
under/IN
2.6/CD
billion/CD
bushels/NNS
,/,
compared/VBN
with/IN
this/DT
year/NN
's/VBZ
estimated/JJ
2.04/CD
billion/CD
and/CC
a/DT
drought-stunted/JJ
1.81/CD
billion/CD
in/IN
1988/CD
./.
But/CC
the/DT
full/JJ
effect/NN
on/IN
prices/NNS
of/IN
the/DT
winter/NN
wheat/NN
now/RB
being/VBG
planted/VBN
wo/MD
n't/RB
be/VB
felt/VBN
until/IN
the/DT
second/JJ
half/NN
of/IN
next/JJ
year/NN
./.
Until/IN
then/RB
,/,
limited/JJ
stocks/NNS
are/VBP
likely/JJ
to/TO
keep/VB
prices/NNS
near/IN
the/DT
$/$
4-a-bushel/JJ
level/NN
,/,
analysts/NNS
say/VBP
./.
On/IN
the/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
Friday/NNP
,/,
wheat/NN
for/IN
December/NNP
delivery/NN
settled/VBD
at/IN
$/$
4.0675/CD
a/DT
bushel/NN
,/,
unchanged/JJ
./.
In/IN
theory/NN
at/IN
least/JJS
,/,
tight/JJ
supplies/NNS
next/JJ
spring/NN
could/MD
leave/VB
the/DT
wheat/NN
futures/NNS
market/NN
susceptible/JJ
to/TO
a/DT
supply-demand/JJ
squeeze/NN
,/,
said/VBD
Daniel/NNP
Basse/NNP
,/,
a/DT
futures/NNS
analyst/NN
with/IN
AgResource/NNP
Co./NNP
in/IN
Chicago/NNP
./.
Such/PDT
a/DT
situation/NN
can/MD
wreak/VB
havoc/NN
,/,
as/IN
was/VBD
shown/VBN
by/IN
the/DT
emergency/NN
that/WDT
developed/VBD
in/IN
soybean/NN
futures/NNS
trading/NN
this/DT
summer/NN
on/IN
the/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
./.
In/IN
July/NNP
,/,
the/DT
CBOT/NNP
ordered/VBD
Ferruzzi/NNP
Finanziaria/NNP
S.p/NNP
./.
A./NNP
to/TO
liquidate/VB
futures/NNS
positions/NNS
equal/JJ
to/TO
about/RB
23/CD
million/CD
bushels/NNS
of/IN
soybeans/NNS
./.
The/DT
exchange/NN
said/VBD
it/PRP
feared/VBD
that/IN
some/DT
members/NNS
would/MD
n't/RB
be/VB
able/JJ
to/TO
find/VB
enough/JJ
soybeans/NNS
to/TO
deliver/VB
and/CC
would/MD
have/VB
to/TO
default/VB
on/IN
their/PRP$
contractual/JJ
obligation/NN
to/TO
the/DT
Italian/JJ
conglomerate/NN
,/,
which/WDT
had/VBD
refused/VBN
requests/NNS
to/TO
reduce/VB
its/PRP$
holdings/NNS
./.
Ferruzzi/NNP
has/VBZ
denied/VBN
it/PRP
was/VBD
trying/VBG
to/TO
manipulate/VB
the/DT
soybean/NN
futures/NNS
market/NN
./.
Unseasonably/RB
hot/JJ
,/,
dry/JJ
weather/NN
across/IN
large/JJ
portions/NNS
of/IN
the/DT
Great/NNP
Plains/NNP
and/CC
in/IN
wheat-growing/JJ
areas/NNS
in/IN
Washington/NNP
and/CC
Oregon/NNP
is/VBZ
threatening/VBG
to/TO
reduce/VB
the/DT
yield/NN
from/IN
this/DT
season/NN
's/POS
winter/NN
wheat/NN
crop/NN
,/,
said/VBD
Conrad/NNP
Leslie/NNP
,/,
a/DT
futures/NNS
analyst/NN
and/CC
head/NN
of/IN
Leslie/NNP
Analytical/NNP
in/IN
Chicago/NNP
./.
For/IN
example/NN
,/,
in/IN
the/DT
Oklahoma/NNP
panhandle/NN
,/,
40/CD
%/NN
or/CC
more/JJR
of/IN
the/DT
topsoil/NN
is/VBZ
short/JJ
of/IN
moisture/NN
./.
That/DT
figure/NN
climbs/VBZ
to/TO
about/RB
47/CD
%/NN
in/IN
wheat-growing/JJ
portions/NNS
of/IN
Kansas/NNP
,/,
he/PRP
said/VBD
./.
The/DT
Soviet/NNP
Union/NNP
has/VBZ
n't/RB
given/VBN
any/DT
clear/JJ
indication/NN
of/IN
its/PRP$
wheat/NN
purchase/NN
plans/NNS
,/,
but/CC
many/JJ
analysts/NNS
expect/VBP
Moscow/NNP
to/TO
place/VB
sizable/JJ
orders/NNS
for/IN
U.S./NNP
wheat/NN
in/IN
the/DT
next/JJ
few/JJ
months/NNS
,/,
further/RB
supporting/VBG
prices/NNS
./.
``/``
Wheat/JJ
prices/NNS
will/MD
increasingly/RB
pivot/VB
off/IN
of/IN
Soviet/JJ
demand/NN
''/''
in/IN
coming/JJ
weeks/NNS
,/,
predicted/VBD
Richard/NNP
Feltes/NNP
,/,
vice/NN
president/NN
,/,
research/NN
,/,
for/IN
Refco/NNP
Inc./NNP
in/IN
Chicago/NNP
./.
Looking/VBG
ahead/RB
to/TO
other/JJ
commodity/NN
markets/NNS
this/DT
week/NN
:/:
Orange/NN
Juice/NN
Traders/NNS
will/MD
be/VB
watching/VBG
to/TO
see/VB
how/WRB
long/RB
and/CC
how/WRB
far/RB
the/DT
price/NN
decline/NN
that/WDT
began/VBD
Friday/NNP
will/MD
go/VB
./.
Late/RB
Thursday/NNP
,/,
after/IN
the/DT
close/NN
of/IN
trading/NN
,/,
the/DT
market/NN
received/VBD
what/WP
would/MD
normally/RB
have/VB
been/VBN
a/DT
bullish/JJ
U.S./NNP
Department/NNP
of/IN
Agriculture/NNP
estimate/NN
of/IN
the/DT
1989-90/CD
Florida/NNP
orange/NN
crop/NN
./.
It/PRP
was/VBD
near/IN
the/DT
low/JJ
range/NN
of/IN
estimates/NNS
,/,
at/IN
130/CD
million/CD
90-pound/JJ
boxes/NNS
,/,
compared/VBN
with/IN
146.6/CD
million/CD
boxes/NNS
last/JJ
season/NN
./.
However/RB
,/,
as/IN
expected/VBN
,/,
Brazil/NNP
waited/VBD
for/IN
the/DT
crop/NN
estimate/NN
to/TO
come/VB
out/RP
and/CC
then/RB
cut/VB
the/DT
export/NN
price/NN
of/IN
its/PRP$
juice/NN
concentrate/NN
to/TO
about/RB
$/$
1.34/CD
a/DT
pound/NN
from/IN
around/IN
$/$
1.55/CD
./.
Friday/NNP
's/POS
consequent/JJ
selling/NN
of/IN
futures/NNS
contracts/NNS
erased/VBD
whatever/WDT
supportive/JJ
effect/NN
the/DT
U.S./NNP
report/NN
might/MD
have/VB
had/VBD
and/CC
sent/VBD
the/DT
November/NNP
orange/NN
juice/NN
contract/NN
down/RB
as/RB
much/JJ
as/IN
6.55/CD
cents/NNS
a/DT
pound/NN
at/IN
one/CD
time/NN
./.
It/PRP
settled/VBD
with/IN
a/DT
loss/NN
of/IN
4.95/CD
cents/NNS
at/IN
$/$
1.3210/CD
a/DT
pound/NN
./.
Brazilian/JJ
juice/NN
,/,
after/IN
a/DT
delay/NN
caused/VBN
by/IN
drought/NN
at/IN
the/DT
start/NN
of/IN
its/PRP$
crop/NN
season/NN
,/,
is/VBZ
beginning/VBG
to/TO
arrive/VB
in/IN
the/DT
U.S./NNP
in/IN
large/JJ
quantities/NNS
./.
Brazil/NNP
wants/VBZ
to/TO
stimulate/VB
demand/NN
for/IN
its/PRP$
product/NN
,/,
which/WDT
is/VBZ
going/VBG
to/TO
be/VB
in/IN
plentiful/JJ
supply/NN
./.
The/DT
price/NN
cut/NN
,/,
one/CD
analyst/NN
said/VBD
,/,
appeared/VBD
to/TO
be/VB
aimed/VBN
even/RB
more/RBR
at/IN
Europe/NNP
,/,
where/WRB
consumption/NN
of/IN
Brazilian/JJ
juice/NN
has/VBZ
fallen/VBN
./.
It/PRP
's/VBZ
a/DT
dollar-priced/JJ
product/NN
,/,
and/CC
the/DT
strong/JJ
dollar/NN
has/VBZ
made/VBN
it/PRP
more/RBR
expensive/JJ
in/IN
Europe/NNP
,/,
the/DT
analyst/NN
said/VBD
./.
New/NNP
York/NNP
futures/NNS
prices/NNS
have/VBP
dropped/VBN
significantly/RB
from/IN
more/JJR
than/IN
$/$
2/CD
a/DT
pound/NN
at/IN
midyear/NN
./.
Barring/VBG
a/DT
cold/JJ
snap/NN
or/CC
other/JJ
crop/NN
problems/NNS
in/IN
the/DT
growing/NN
areas/NNS
,/,
downward/JJ
pressure/NN
on/IN
prices/NNS
is/VBZ
likely/JJ
to/TO
continue/VB
into/IN
January/NNP
,/,
when/WRB
harvesting/NN
and/CC
processing/NN
of/IN
oranges/NNS
in/IN
Florida/NNP
reach/VBP
their/PRP$
peak/NN
,/,
the/DT
analyst/NN
said/VBD
./.
Energy/NN
Although/IN
some/DT
analysts/NNS
look/VBP
for/IN
profit-taking/NN
in/IN
the/DT
wake/NN
of/IN
Friday/NNP
's/POS
leap/NN
in/IN
crude/JJ
oil/NN
prices/NNS
,/,
last/JJ
week/NN
's/POS
rally/NN
is/VBZ
generally/RB
expected/VBN
to/TO
continue/VB
this/DT
week/NN
./.
``/``
I/PRP
would/MD
continue/VB
to/TO
look/VB
for/IN
a/DT
stable/JJ
crude/NN
market/NN
,/,
at/IN
least/JJS
in/IN
futures/NNS
''/''
trading/NN
,/,
said/VBD
William/NNP
Hinton/NNP
,/,
an/DT
energy/NN
futures/NNS
broker/NN
with/IN
Stotler/NNP
&/CC
Co/NNP
./.
Friday/NNP
capped/VBD
a/DT
week/NN
of/IN
steadily/RB
rising/VBG
crude/JJ
oil/NN
prices/NNS
in/IN
both/CC
futures/NNS
and/CC
spot/NN
markets/NNS
./.
On/IN
the/DT
New/NNP
York/NNP
Mercantile/NNP
Exchange/NNP
,/,
West/NNP
Texas/NNP
Intermediate/NNP
crude/NN
for/IN
November/NNP
delivery/NN
finished/VBD
at/IN
$/$
20.89/CD
a/DT
barrel/NN
,/,
up/RB
42/CD
cents/NNS
on/IN
the/DT
day/NN
./.
On/IN
European/JJ
markets/NNS
,/,
meanwhile/RB
,/,
spot/NN
prices/NNS
of/IN
North/NNP
Sea/NNP
crudes/NNS
were/VBD
up/RB
35/CD
to/TO
75/CD
cents/NNS
a/DT
barrel/NN
./.
``/``
This/DT
market/NN
still/RB
wants/VBZ
to/TO
go/VB
higher/RBR
,/,
''/''
said/VBD
Nauman/NNP
Barakat/NNP
,/,
a/DT
first/JJ
vice/NN
president/NN
at/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc/NNP
./.
He/PRP
predicted/VBD
that/IN
the/DT
November/NNP
contract/NN
will/MD
reach/VB
$/$
21.50/CD
a/DT
barrel/NN
or/CC
more/JJR
on/IN
the/DT
New/NNP
York/NNP
Mercantile/NNP
Exchange/NNP
./.
There/EX
has/VBZ
been/VBN
little/JJ
news/NN
to/TO
account/VB
for/IN
such/JJ
buoyancy/NN
in/IN
the/DT
oil/NN
markets/NNS
./.
Analysts/NNS
generally/RB
cite/VBP
a/DT
lack/NN
of/IN
bearish/JJ
developments/NNS
as/RB
well/RB
as/IN
rumors/NNS
of/IN
a/DT
possible/JJ
tightening/NN
of/IN
supplies/NNS
of/IN
some/DT
fuels/NNS
and/CC
crudes/NNS
./.
There/EX
also/RB
are/VBP
recurring/VBG
reports/NNS
that/IN
the/DT
Soviet/NNP
Union/NNP
is/VBZ
having/VBG
difficulties/NNS
with/IN
its/PRP$
oil/NN
exports/NNS
and/CC
that/IN
Nigeria/NNP
has/VBZ
about/RB
reached/VBN
its/PRP$
production/NN
limit/NN
and/CC
ca/MD
n't/RB
produce/VB
as/RB
much/JJ
as/IN
it/PRP
could/MD
sell/VB
./.
Many/JJ
traders/NNS
foresee/VBP
a/DT
tightening/NN
of/IN
near-term/JJ
supplies/NNS
,/,
particularly/RB
of/IN
high-quality/JJ
crudes/NNS
such/JJ
as/IN
those/DT
produced/VBN
in/IN
the/DT
North/NNP
Sea/NNP
and/CC
in/IN
Nigeria/NNP
./.
If/IN
a/DT
hostile/JJ
predator/NN
emerges/VBZ
for/IN
Saatchi/NNP
&/CC
Saatchi/NNP
Co./NNP
,/,
co-founders/NNS
Charles/NNP
and/CC
Maurice/NNP
Saatchi/NNP
will/MD
lead/VB
a/DT
management/NN
buy-out/NN
attempt/NN
,/,
an/DT
official/JJ
close/NN
to/TO
the/DT
company/NN
said/VBD
./.
Financing/NN
for/IN
any/DT
takeover/NN
attempt/NN
may/MD
be/VB
problematic/JJ
in/IN
the/DT
wake/NN
of/IN
Friday/NNP
's/POS
stock-market/NN
sell-off/NN
in/IN
New/NNP
York/NNP
and/CC
turmoil/NN
in/IN
the/DT
junk-bond/NN
market/NN
./.
But/CC
the/DT
beleaguered/JJ
British/JJ
advertising/NN
and/CC
consulting/NN
giant/NN
,/,
which/WDT
last/JJ
week/NN
named/VBD
a/DT
new/JJ
chief/JJ
executive/JJ
officer/NN
to/TO
replace/VB
Maurice/NNP
Saatchi/NNP
,/,
has/VBZ
been/VBN
the/DT
subject/NN
of/IN
intense/JJ
takeover/NN
speculation/NN
for/IN
weeks/NNS
./.
Last/JJ
week/NN
,/,
Saatchi/NNP
's/POS
largest/JJS
shareholder/NN
,/,
Southeastern/NNP
Asset/NNP
Management/NNP
,/,
said/VBD
it/PRP
had/VBD
been/VBN
approached/VBN
by/IN
one/CD
or/CC
more/JJR
third/JJ
parties/NNS
interested/JJ
in/IN
a/DT
possible/JJ
restructuring/NN
./.
And/CC
Carl/NNP
Spielvogel/NNP
,/,
chief/JJ
executive/JJ
officer/NN
of/IN
Saatchi/NNP
's/POS
big/JJ
Backer/NNP
Spielvogel/NNP
Bates/NNP
advertising/NN
unit/NN
,/,
said/VBD
he/PRP
had/VBD
offered/VBN
to/TO
lead/VB
a/DT
management/NN
buy-out/NN
of/IN
the/DT
company/NN
,/,
but/CC
was/VBD
rebuffed/VBN
by/IN
Charles/NNP
Saatchi/NNP
./.
Mr./NNP
Spielvogel/NNP
said/VBD
he/PRP
would/MD
n't/RB
launch/VB
a/DT
hostile/JJ
bid/NN
./.
The/DT
executive/NN
close/RB
to/TO
Saatchi/NNP
&/CC
Saatchi/NNP
said/VBD
that/IN
``/``
if/IN
a/DT
bidder/NN
came/VBD
up/RP
with/IN
a/DT
ludicrously/RB
high/JJ
offer/NN
,/,
a/DT
crazy/JJ
offer/NN
which/WDT
Saatchi/NNP
knew/VBD
it/PRP
could/MD
n't/RB
beat/VB
,/,
it/PRP
would/MD
have/VB
no/DT
choice/NN
but/CC
to/TO
recommend/VB
it/PRP
to/TO
shareholders/NNS
./.
But/CC
{/(
otherwise/RB
}/)
it/PRP
would/MD
undoubtedly/RB
come/VB
back/RP
''/''
with/IN
an/DT
offer/NN
by/IN
management/NN
./.
The/DT
executive/NN
said/VBD
any/DT
buy-out/NN
would/MD
be/VB
led/VBN
by/IN
the/DT
current/JJ
board/NN
,/,
whose/WP$
chairman/NN
is/VBZ
Maurice/NNP
Saatchi/NNP
and/CC
whose/WP$
strategic/JJ
guiding/JJ
force/NN
is/VBZ
believed/VBN
to/TO
be/VB
Charles/NNP
Saatchi/NNP
./.
Mr./NNP
Spielvogel/NNP
is/VBZ
n't/RB
part/NN
of/IN
the/DT
board/NN
,/,
nor/CC
are/VBP
any/DT
of/IN
the/DT
other/JJ
heads/NNS
of/IN
Saatchi/NNP
's/POS
big/JJ
U.S.-based/JJ
ad/NN
agencies/NNS
./.
The/DT
executive/NN
did/VBD
n't/RB
name/VB
any/DT
price/NN
,/,
but/CC
securities/NNS
analysts/NNS
have/VBP
said/VBD
Saatchi/NNS
would/MD
fetch/VB
upward/RB
of/IN
$/$
1.3/CD
billion/CD
./.
The/DT
executive/NN
denied/VBD
speculation/NN
that/IN
Saatchi/NNP
was/VBD
bringing/VBG
in/RP
the/DT
new/JJ
chief/JJ
executive/JJ
officer/NN
only/RB
to/TO
clean/VB
up/RP
the/DT
company/NN
financially/RB
so/IN
that/IN
the/DT
brothers/NNS
could/MD
lead/VB
a/DT
buy-back/NN
./.
That/DT
speculation/NN
abounded/VBD
Friday/NNP
as/IN
industry/NN
executives/NNS
analyzed/VBD
the/DT
appointment/NN
of/IN
the/DT
new/JJ
chief/JJ
executive/NN
,/,
Robert/NNP
Louis-Dreyfus/NNP
,/,
who/WP
joins/VBZ
Saatchi/NNP
and/CC
becomes/VBZ
a/DT
member/NN
of/IN
its/PRP$
board/NN
on/IN
Jan./NNP
1/CD
./.
Mr./NNP
Louis-Dreyfus/NNP
,/,
formerly/RB
chief/JJ
executive/NN
of/IN
the/DT
pharmaceutical/JJ
research/NN
firm/NN
IMS/NNP
International/NNP
Inc./NNP
,/,
has/VBZ
a/DT
reputation/NN
as/IN
a/DT
savvy/JJ
financial/JJ
manager/NN
,/,
and/CC
will/MD
be/VB
charged/VBN
largely/RB
with/IN
repairing/VBG
Saatchi/NNP
's/POS
poor/JJ
financial/JJ
state/NN
./.
Asked/VBN
about/IN
the/DT
speculation/NN
that/IN
Mr./NNP
Louis-Dreyfus/NNP
has/VBZ
been/VBN
hired/VBN
to/TO
pave/VB
the/DT
way/NN
for/IN
a/DT
buy-out/NN
by/IN
the/DT
brothers/NNS
,/,
the/DT
executive/NN
replied/VBD
,/,
``/``
That/DT
is/VBZ
n't/RB
the/DT
reason/NN
Dreyfus/NNP
has/VBZ
been/VBN
brought/VBN
in/RP
./.
He/PRP
was/VBD
brought/VBN
in/RP
to/TO
turn/VB
around/RP
the/DT
company/NN
./.
''/''
Separately/RB
,/,
several/JJ
Saatchi/NNP
agency/NN
clients/NNS
said/VBD
they/PRP
believe/VBP
the/DT
company/NN
's/POS
management/NN
shakeup/NN
will/MD
have/VB
little/JJ
affect/NN
on/IN
them/PRP
./.
``/``
It/PRP
has/VBZ
n't/RB
had/VBN
any/DT
impact/NN
on/IN
us/PRP
,/,
nor/CC
do/VBP
we/PRP
expect/VB
it/PRP
to/TO
,/,
''/''
said/VBD
a/DT
spokeswoman/NN
for/IN
Miller/NNP
Brewing/NNP
Co./NNP
,/,
a/DT
major/JJ
client/NN
of/IN
Backer/NNP
Spielvogel/NNP
./.
John/NNP
Lampe/NNP
,/,
director/NN
of/IN
advertising/NN
at/IN
PaineWebber/NNP
Inc./NNP
,/,
a/DT
Saatchi/NNP
&/CC
Saatchi/NNP
Advertising/NNP
client/NN
,/,
said/VBD
:/:
``/``
We/PRP
have/VBP
no/DT
problem/NN
with/IN
the/DT
announcement/NN
,/,
because/IN
we/PRP
do/VBP
n't/RB
know/VB
what/WP
change/NN
it/PRP
's/VBZ
going/VBG
to/TO
bring/VB
about/RP
./.
We/PRP
are/VBP
n't/RB
going/VBG
to/TO
change/VB
agencies/NNS
because/IN
of/IN
a/DT
change/NN
in/IN
London/NNP
./.
''/''
Executives/NNS
at/IN
Backer/NNP
Spielvogel/NNP
client/NN
Avis/NNP
Inc./NNP
,/,
as/RB
well/RB
as/IN
at/IN
Saatchi/NNS
client/NN
Philips/NNP
Lighting/NNP
Co./NNP
,/,
also/RB
said/VBD
they/PRP
saw/VBD
no/DT
effect/NN
./.
Executives/NNS
at/IN
Prudential-Bache/NNP
Securities/NNP
Inc./NNP
,/,
a/DT
Backer/NNP
Spielvogel/NNP
client/NN
that/WDT
is/VBZ
reviewing/VBG
its/PRP$
account/NN
,/,
declined/VBD
comment/NN
./.
Mr./NNP
Spielvogel/NNP
had/VBD
said/VBD
that/IN
Prudential-Bache/NNP
was/VBD
prepared/VBN
to/TO
finance/VB
either/CC
a/DT
management/NN
buy-out/NN
and/CC
restructuring/NN
,/,
or/CC
a/DT
buy-out/NN
of/IN
Backer/NNP
Spielvogel/NNP
alone/RB
,/,
led/VBN
by/IN
him/PRP
./.
Ad/NN
Notes/NNS
.../:
./.
NEW/JJ
ACCOUNT/NN
:/:
California/NNP
's/POS
Glendale/NNP
Federal/NNP
Bank/NNP
awarded/VBD
its/PRP$
$/$
12/CD
million/CD
to/TO
$/$
15/CD
million/CD
account/NN
to/TO
the/DT
Los/NNP
Angeles/NNP
office/NN
of/IN
Omnicom/NNP
Group/NNP
's/POS
BBDO/NNP
agency/NN
./.
The/DT
account/NN
was/VBD
previously/RB
handled/VBN
by/IN
Davis/NNP
,/,
Ball/NNP
&/CC
Colombatto/NNP
Advertising/NNP
Inc./NNP
,/,
a/DT
Los/NNP
Angeles/NNP
agency/NN
./.
ACCOUNT/NNP
REVIEW/NNP
:/:
Royal/NNP
Crown/NNP
Cola/NNP
Co./NNP
has/VBZ
ended/VBN
its/PRP$
relationship/NN
with/IN
the/DT
Boston/NNP
office/NN
of/IN
Hill/NNP
,/,
Holliday/NNP
,/,
Connors/NNP
,/,
Cosmopulos/NNP
./.
The/DT
account/NN
had/VBD
billed/VBN
about/RB
$/$
6/CD
million/CD
in/IN
1988/CD
,/,
according/VBG
to/TO
Leading/NNP
National/NNP
Advertisers/NNP
./.
NOT-GUILTY/JJ
PLEA/NN
:/:
As/IN
expected/VBN
,/,
Young/NNP
&/CC
Rubicam/NNP
Inc./NNP
along/IN
with/IN
two/CD
senior/JJ
executives/NNS
and/CC
a/DT
former/JJ
employee/NN
,/,
pleaded/VBD
not/RB
guilty/JJ
in/IN
federal/JJ
court/NN
in/IN
New/NNP
Haven/NNP
,/,
Conn./NNP
,/,
to/TO
conspiracy/NN
and/CC
racketeering/NN
charges/NNS
./.
The/DT
government/NN
has/VBZ
charged/VBN
that/IN
they/PRP
bribed/VBD
Jamaican/JJ
officials/NNS
to/TO
win/VB
the/DT
Jamaica/NNP
Tourist/NNP
Board/NNP
ad/NN
account/NN
in/IN
1981/CD
./.
A/DT
spokesman/NN
for/IN
the/DT
U.S./NNP
Attorney/NNP
's/POS
office/NN
said/VBD
extradition/NN
proceedings/NNS
are/VBP
``/``
just/RB
beginning/VBG
''/''
for/IN
the/DT
other/JJ
two/CD
defendants/NNS
in/IN
the/DT
case/NN
,/,
Eric/NNP
Anthony/NNP
Abrahams/NNP
,/,
former/JJ
Jamaican/JJ
tourism/NN
minister/NN
,/,
and/CC
Jamaican/JJ
businessman/NN
Arnold/NNP
Foote/NNP
Jr/NNP
./.
KOREAN/JJ
AGENCY/NN
:/:
The/DT
Samsung/NNP
Group/NNP
and/CC
Bozell/NNP
Inc./NNP
agreed/VBD
to/TO
establish/VB
a/DT
joint/JJ
venture/NN
advertising/NN
agency/NN
in/IN
South/NNP
Korea/NNP
./.
Bozell/NNP
Cheil/NNP
Corp./NNP
,/,
as/IN
the/DT
new/JJ
agency/NN
will/MD
be/VB
called/VBN
,/,
will/MD
be/VB
based/VBN
in/IN
Seoul/NNP
and/CC
is/VBZ
70/CD
%/NN
owned/VBN
by/IN
Samsung/NNP
and/CC
30/CD
%/NN
owned/VBN
by/IN
Bozell/NNP
./.
Samsung/NNP
already/RB
owns/VBZ
Korea/NNP
First/NNP
Advertising/NNP
Co./NNP
,/,
that/DT
country/NN
's/POS
largest/JJS
agency/NN
./.
Bozell/NNP
joins/VBZ
Backer/NNP
Spielvogel/NNP
Bates/NNP
and/CC
Ogilvy/NNP
Group/NNP
as/IN
U.S./NNP
agencies/NNS
with/IN
interests/NNS
in/IN
Korean/JJ
agencies/NNS
./.
Citing/VBG
a/DT
payment/NN
from/IN
a/DT
supplier/NN
and/CC
strong/JJ
sales/NNS
of/IN
certain/JJ
data-storage/JJ
products/NNS
,/,
Maxtor/NNP
Corp./NNP
said/VBD
earnings/NNS
and/CC
revenue/NN
jumped/VBD
in/IN
its/PRP$
second/JJ
quarter/NN
ended/VBN
Sept./NNP
24/CD
./.
The/DT
maker/NN
of/IN
computer-data-storage/JJ
products/NNS
said/VBD
net/JJ
income/NN
rose/VBD
to/TO
$/$
4.8/CD
million/CD
,/,
or/CC
23/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
year-earlier/JJ
net/NN
of/IN
$/$
1.1/CD
million/CD
,/,
or/CC
five/CD
cents/NNS
a/DT
share/NN
./.
Revenue/NN
soared/VBD
to/TO
$/$
117/CD
million/CD
from/IN
$/$
81.5/CD
million/CD
./.
Maxtor/NNP
said/VBD
its/PRP$
results/NNS
were/VBD
boosted/VBN
by/IN
$/$
2/CD
million/CD
in/IN
payments/NNS
received/VBN
from/IN
a/DT
supplier/NN
,/,
for/IN
a/DT
certain/JJ
line/NN
of/IN
products/NNS
that/IN
Maxtor/NNP
is/VBZ
n't/RB
going/VBG
to/TO
sell/VB
anymore/RB
./.
Maxtor/NNP
said/VBD
effects/NNS
from/IN
discontinuing/VBG
the/DT
line/NN
may/MD
have/VB
a/DT
positive/JJ
effect/NN
on/IN
future/JJ
earnings/NNS
and/CC
revenue/NN
./.
A/DT
spokeswoman/NN
would/MD
n't/RB
elaborate/VB
,/,
but/CC
the/DT
company/NN
said/VBD
the/DT
discontinued/VBN
product/NN
has/VBZ
never/RB
been/VBN
a/DT
major/JJ
source/NN
of/IN
revenue/NN
or/CC
profit/NN
./.
Operationally/RB
,/,
Maxtor/NNP
benefited/VBD
from/IN
robust/JJ
sales/NNS
of/IN
products/NNS
that/WDT
store/VBP
data/NNS
for/IN
high-end/JJ
personal/JJ
computers/NNS
and/CC
computer/NN
workstations/NNS
./.
In/IN
the/DT
fiscal/JJ
first/JJ
half/NN
,/,
net/NN
was/VBD
$/$
7/CD
million/CD
,/,
or/CC
34/CD
cents/NNS
a/DT
share/NN
,/,
up/RB
from/IN
the/DT
year-earlier/JJ
$/$
3.1/CD
million/CD
,/,
or/CC
15/CD
cents/NNS
a/DT
share/NN
./.
Revenue/NN
rose/VBD
to/TO
$/$
225.5/CD
million/CD
from/IN
$/$
161.8/CD
million/CD
./.
Robert/NNP
G./NNP
Walden/NNP
,/,
62/CD
years/NNS
old/JJ
,/,
was/VBD
elected/VBN
a/DT
director/NN
of/IN
this/DT
provider/NN
of/IN
advanced/JJ
technology/NN
systems/NNS
and/CC
services/NNS
,/,
increasing/VBG
the/DT
board/NN
to/TO
eight/CD
members/NNS
./.
He/PRP
retired/VBD
as/IN
senior/JJ
vice/NN
president/NN
,/,
finance/NN
and/CC
administration/NN
,/,
and/CC
chief/JJ
financial/JJ
officer/NN
of/IN
the/DT
company/NN
Oct./NNP
1/CD
./.
Southmark/NNP
Corp./NNP
said/VBD
that/IN
it/PRP
filed/VBD
part/NN
of/IN
its/PRP$
10-K/JJ
report/NN
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
,/,
but/CC
that/IN
the/DT
filing/NN
does/VBZ
n't/RB
include/VB
its/PRP$
audited/JJ
financial/JJ
statements/NNS
and/CC
related/JJ
information/NN
./.
The/DT
real/JJ
estate/NN
and/CC
thrift/NN
concern/NN
,/,
operating/VBG
under/IN
bankruptcy-law/NN
proceedings/NNS
,/,
said/VBD
it/PRP
told/VBD
the/DT
SEC/NNP
it/PRP
could/MD
n't/RB
provide/VB
financial/JJ
statements/NNS
by/IN
the/DT
end/NN
of/IN
its/PRP$
first/JJ
extension/NN
``/``
without/IN
unreasonable/JJ
burden/NN
or/CC
expense/NN
./.
''/''
The/DT
company/NN
asked/VBD
for/IN
a/DT
15-day/JJ
extension/NN
Sept./NNP
30/CD
,/,
when/WRB
the/DT
financial/JJ
reports/NNS
were/VBD
due/JJ
./.
Southmark/NNP
said/VBD
it/PRP
plans/VBZ
to/TO
amend/VB
its/PRP$
10K/JJ
to/TO
provide/VB
financial/JJ
results/NNS
as/RB
soon/RB
as/IN
its/PRP$
audit/NN
is/VBZ
completed/VBN
./.
Alan/NNP
Seelenfreund/NNP
,/,
52/CD
years/NNS
old/JJ
,/,
was/VBD
named/VBN
chairman/NN
of/IN
this/DT
processor/NN
of/IN
prescription/NN
claims/NNS
,/,
succeeding/VBG
Thomas/NNP
W./NNP
Field/NNP
Jr./NNP
,/,
55/CD
,/,
who/WP
resigned/VBD
last/JJ
month/NN
./.
Mr./NNP
Field/NNP
also/RB
had/VBD
been/VBN
chairman/NN
of/IN
McKesson/NNP
Corp./NNP
,/,
resigning/VBG
that/DT
post/NN
after/IN
a/DT
dispute/NN
with/IN
the/DT
board/NN
over/IN
corporate/JJ
strategy/NN
./.
Mr./NNP
Seelenfreund/NNP
is/VBZ
executive/JJ
vice/NN
president/NN
and/CC
chief/JJ
financial/JJ
officer/NN
of/IN
McKesson/NNP
and/CC
will/MD
continue/VB
in/IN
those/DT
roles/NNS
./.
PCS/NNP
also/RB
named/VBD
Rex/NNP
R./NNP
Malson/NNP
,/,
57/CD
,/,
executive/JJ
vice/NN
president/NN
at/IN
McKesson/NNP
,/,
as/IN
a/DT
director/NN
,/,
filling/VBG
the/DT
seat/NN
vacated/VBN
by/IN
Mr./NNP
Field/NNP
./.
Messrs./NNP
Malson/NNP
and/CC
Seelenfreund/NNP
are/VBP
directors/NNS
of/IN
McKesson/NNP
,/,
which/WDT
has/VBZ
an/DT
86/CD
%/NN
stake/NN
in/IN
PCS/NNP
./.
MedChem/NNP
Products/NNP
Inc./NNP
said/VBD
a/DT
U.S./NNP
District/NNP
Court/NNP
in/IN
Boston/NNP
ruled/VBD
that/IN
a/DT
challenge/NN
by/IN
MedChem/NNP
to/TO
the/DT
validity/NN
of/IN
a/DT
U.S./NNP
patent/NN
held/VBN
by/IN
Pharmacia/NNP
Inc./NNP
was/VBD
``/``
without/IN
merit/NN
./.
''/''
Pharmacia/NNP
,/,
based/VBN
in/IN
Upsala/NNP
,/,
Sweden/NNP
,/,
had/VBD
charged/VBN
in/IN
a/DT
lawsuit/NN
against/IN
MedChem/NNP
that/IN
MedChem/NNP
's/POS
AMVISC/NNP
product/NN
line/NN
infringes/VBZ
on/IN
the/DT
Pharmacia/NNP
patent/NN
./.
The/DT
patent/NN
is/VBZ
related/VBN
to/TO
hyaluronic/JJ
acid/NN
,/,
a/DT
rooster-comb/NN
extract/NN
used/VBN
in/IN
eye/NN
surgery/NN
./.
In/IN
its/PRP$
lawsuit/NN
,/,
Pharmacia/NNP
is/VBZ
seeking/VBG
unspecified/JJ
damages/NNS
and/CC
a/DT
preliminary/JJ
injunction/NN
to/TO
block/VB
MedChem/NNP
from/IN
selling/VBG
the/DT
AMVISC/NNP
products/NNS
./.
A/DT
MedChem/NNP
spokesman/NN
said/VBD
the/DT
products/NNS
contribute/VBP
about/RB
a/DT
third/JJ
of/IN
MedChem/NNP
's/POS
sales/NNS
and/CC
10/CD
%/NN
to/TO
20/CD
%/NN
of/IN
its/PRP$
earnings/NNS
./.
In/IN
the/DT
year/NN
ended/VBN
Aug./NNP
31/CD
,/,
1988/CD
,/,
MedChem/NNP
earned/VBD
$/$
2.9/CD
million/CD
,/,
or/CC
72/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
sales/NNS
of/IN
$/$
17.4/CD
million/CD
./.
MedChem/NNP
said/VBD
the/DT
court/NN
's/POS
ruling/NN
was/VBD
issued/VBN
as/IN
part/NN
of/IN
a/DT
``/``
first-phase/JJ
trial/NN
''/''
in/IN
the/DT
patent-infringement/NN
proceedings/NNS
and/CC
concerns/VBZ
only/RB
one/CD
of/IN
its/PRP$
defenses/NNS
in/IN
the/DT
case/NN
./.
It/PRP
said/VBD
it/PRP
is/VBZ
considering/VBG
``/``
all/DT
of/IN
its/PRP$
options/NNS
in/IN
light/NN
of/IN
the/DT
decision/NN
,/,
including/VBG
a/DT
possible/JJ
appeal/NN
./.
''/''
The/DT
medical-products/NNS
company/NN
added/VBD
that/IN
it/PRP
plans/VBZ
to/TO
``/``
assert/VB
its/PRP$
other/JJ
defenses/NNS
''/''
against/IN
Pharmacia/NNP
's/POS
lawsuit/NN
,/,
including/VBG
the/DT
claim/NN
that/IN
it/PRP
has/VBZ
n't/RB
infringed/VBN
on/IN
Pharmacia/NNP
's/POS
patent/NN
./.
MedChem/NNP
said/VBD
that/IN
the/DT
court/NN
scheduled/VBD
a/DT
conference/NN
for/IN
next/JJ
Monday/NNP
--/:
to/TO
set/VB
a/DT
date/NN
for/IN
proceedings/NNS
on/IN
Pharmacia/NNP
's/POS
motion/NN
for/IN
a/DT
preliminary/JJ
injunction/NN
./.
Newspaper/NN
publishers/NNS
are/VBP
reporting/VBG
mixed/JJ
third-quarter/JJ
results/NNS
,/,
aided/VBN
by/IN
favorable/JJ
newsprint/NN
prices/NNS
and/CC
hampered/VBN
by/IN
flat/JJ
or/CC
declining/JJ
advertising/NN
linage/NN
,/,
especially/RB
in/IN
the/DT
Northeast/NNP
./.
Adding/VBG
to/TO
unsteadiness/NN
in/IN
the/DT
industry/NN
,/,
seasonal/JJ
retail/JJ
ad/NN
spending/NN
patterns/NNS
in/IN
newspapers/NNS
have/VBP
been/VBN
upset/VBN
by/IN
shifts/NNS
in/IN
ownership/NN
and/CC
general/JJ
hardships/NNS
within/IN
the/DT
retail/JJ
industry/NN
./.
In/IN
New/NNP
York/NNP
,/,
the/DT
Bonwit/NNP
Teller/NNP
and/CC
B./NNP
Altman/NNP
&/CC
Co./NNP
department/NN
stores/NNS
have/VBP
filed/VBN
for/IN
protection/NN
from/IN
creditors/NNS
under/IN
Chapter/NNP
11/CD
of/IN
the/DT
federal/JJ
Bankruptcy/NNP
Code/NNP
,/,
while/IN
the/DT
R.H./NNP
Macy/NNP
&/CC
Co./NNP
,/,
Bloomingdale/NNP
's/POS
and/CC
Saks/NNP
Fifth/NNP
Avenue/NNP
department-store/NN
chains/NNS
are/VBP
for/IN
sale/NN
./.
Many/JJ
papers/NNS
throughout/IN
the/DT
country/NN
are/VBP
also/RB
faced/VBN
with/IN
a/DT
slowdown/NN
in/IN
classified-ad/NN
spending/NN
,/,
a/DT
booming/JJ
category/NN
for/IN
newspapers/NNS
in/IN
recent/JJ
years/NNS
./.
Until/IN
recently/RB
,/,
industry/NN
analysts/NNS
believed/VBD
decreases/NNS
in/IN
retail/JJ
ad/NN
spending/NN
had/VBD
bottomed/VBN
out/RP
and/CC
would/MD
in/IN
fact/NN
increase/VB
in/IN
this/DT
year/NN
's/POS
third/JJ
and/CC
fourth/JJ
quarters/NNS
./.
All/DT
bets/NNS
are/VBP
off/RB
,/,
analysts/NNS
say/VBP
,/,
because/IN
of/IN
the/DT
shifting/JJ
ownership/NN
of/IN
the/DT
retail/JJ
chains/NNS
./.
``/``
Improved/JJ
paper/NN
prices/NNS
will/MD
help/VB
offset/VB
weakness/NN
in/IN
linage/NN
,/,
but/CC
the/DT
retailers/NNS
'/POS
problems/NNS
have/VBP
affected/VBN
the/DT
amount/NN
of/IN
ad/NN
linage/NN
they/PRP
usually/RB
run/VBP
,/,
''/''
said/VBD
Edward/NNP
J./NNP
Atorino/NNP
,/,
industry/NN
analyst/NN
for/IN
Salomon/NNP
Brothers/NNP
Inc/NNP
./.
``/``
Retailers/NNS
are/VBP
just/RB
in/IN
disarray/NN
./.
''/''
For/IN
instance/NN
,/,
Gannett/NNP
Co./NNP
posted/VBD
an/DT
11/CD
%/NN
gain/NN
in/IN
net/JJ
income/NN
,/,
as/IN
total/JJ
ad/NN
pages/NNS
dropped/VBD
at/IN
USA/NNP
Today/NNP
,/,
but/CC
advertising/NN
revenue/NN
rose/VBD
because/IN
of/IN
a/DT
higher/JJR
circulation/NN
rate/NN
base/NN
and/CC
increased/JJ
rates/NNS
./.
Gannett/NNP
's/POS
83/CD
daily/JJ
and/CC
35/CD
non-daily/JJ
newspapers/NNS
reported/VBD
a/DT
3/CD
%/NN
increase/NN
in/IN
advertising/NN
and/CC
circulation/NN
revenue/NN
./.
Total/JJ
advertising/NN
linage/NN
was/VBD
``/``
modestly/RB
''/''
lower/JJR
as/IN
classified-ad/NN
volume/NN
increased/VBD
,/,
while/IN
there/EX
was/VBD
``/``
softer/JJR
demand/NN
''/''
for/IN
retail/JJ
and/CC
national/JJ
ad/NN
linage/NN
,/,
said/VBD
John/NNP
Curley/NNP
,/,
Gannett/NNP
's/POS
chief/JJ
executive/JJ
officer/NN
./.
At/IN
USA/NNP
Today/NNP
,/,
ad/NN
pages/NNS
totaled/VBD
785/CD
for/IN
the/DT
quarter/NN
,/,
down/RB
9.2/CD
%/NN
from/IN
the/DT
1988/CD
period/NN
,/,
which/WDT
was/VBD
helped/VBN
by/IN
increased/JJ
ad/NN
spending/NN
from/IN
the/DT
Summer/NNP
Olympics/NNPS
./.
While/IN
USA/NNP
Today/NNP
's/POS
total/JJ
paid/JJ
ad/NN
pages/NNS
for/IN
the/DT
year/NN
to/TO
date/NN
totaled/VBD
2,735/CD
,/,
a/DT
decrease/NN
of/IN
4/CD
%/NN
from/IN
last/JJ
year/NN
,/,
the/DT
paper/NN
's/POS
ad/NN
revenue/NN
increased/VBD
8/CD
%/NN
in/IN
the/DT
quarter/NN
and/CC
13/CD
%/NN
in/IN
the/DT
nine/CD
months/NNS
./.
In/IN
the/DT
nine/CD
months/NNS
,/,
Gannett/NNP
's/POS
net/NN
rose/VBD
9.5/CD
%/NN
to/TO
$/$
270/CD
million/CD
,/,
or/CC
$/$
1.68/CD
a/DT
share/NN
,/,
from/IN
$/$
247/CD
million/CD
,/,
or/CC
$/$
1.52/CD
a/DT
share/NN
./.
Revenue/NN
gained/VBD
6/CD
%/NN
to/TO
$/$
2.55/CD
billion/CD
from/IN
$/$
2.4/CD
billion/CD
./.
At/IN
Dow/NNP
Jones/NNP
&/CC
Co./NNP
,/,
third-quarter/JJ
net/NN
income/NN
fell/VBD
9.9/CD
%/NN
from/IN
the/DT
year-earlier/JJ
period/NN
./.
Net/NN
fell/VBD
to/TO
$/$
28.8/CD
million/CD
,/,
or/CC
29/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
32/CD
million/CD
,/,
or/CC
33/CD
cents/NNS
a/DT
share/NN
./.
The/DT
year-earlier/JJ
period/NN
included/VBD
a/DT
one-time/JJ
gain/NN
of/IN
$/$
3.5/CD
million/CD
,/,
or/CC
four/CD
cents/NNS
a/DT
share/NN
./.
Revenue/NN
gained/VB
5.3/CD
%/NN
to/TO
$/$
404.1/CD
million/CD
from/IN
$/$
383.8/CD
million/CD
./.
The/DT
drop/NN
in/IN
profit/NN
reflected/VBD
,/,
in/IN
part/NN
,/,
continued/JJ
softness/NN
in/IN
financial/JJ
advertising/NN
at/IN
The/DT
Wall/NNP
Street/NNP
Journal/NNP
and/CC
Barron/NNP
's/POS
magazine/NN
./.
Ad/NN
linage/NN
at/IN
the/DT
Journal/NNP
fell/VBD
6.1/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
./.
Affiliated/NNP
Publications/NNP
Inc./NNP
reversed/VBD
a/DT
year-earlier/JJ
third/JJ
quarter/NN
net/JJ
loss/NN
./.
The/DT
publisher/NN
of/IN
the/DT
Boston/NNP
Globe/NNP
reported/VBD
net/NN
of/IN
$/$
8.5/CD
million/CD
,/,
or/CC
12/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
a/DT
loss/NN
of/IN
$/$
26.5/CD
million/CD
,/,
or/CC
38/CD
cents/NNS
a/DT
share/NN
,/,
for/IN
the/DT
third/JJ
quarter/NN
in/IN
1988/CD
./.
William/NNP
O./NNP
Taylor/NNP
,/,
the/DT
parent/NN
's/POS
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
said/VBD
earnings/NNS
continued/VBD
to/TO
be/VB
hurt/VBN
by/IN
softness/NN
in/IN
ad/NN
volume/NN
at/IN
the/DT
Boston/NNP
newspaper/NN
./.
Third-quarter/JJ
profit/NN
estimates/NNS
for/IN
several/JJ
companies/NNS
are/VBP
being/VBG
strongly/RB
affected/VBN
by/IN
the/DT
price/NN
of/IN
newsprint/NN
,/,
which/WDT
in/IN
the/DT
last/JJ
two/CD
years/NNS
has/VBZ
had/VBD
several/JJ
price/NN
increases/NNS
./.
After/IN
a/DT
supply/NN
crunch/NN
caused/VBD
prices/NNS
to/TO
rise/VB
14/CD
%/NN
since/IN
1986/CD
to/TO
$/$
650/CD
a/DT
metric/JJ
ton/NN
,/,
analysts/NNS
are/VBP
encouraged/JJ
,/,
because/IN
they/PRP
do/VBP
n't/RB
expect/VB
a/DT
price/NN
increase/NN
for/IN
the/DT
rest/NN
of/IN
this/DT
year/NN
./.
Companies/NNS
with/IN
daily/JJ
newspapers/NNS
in/IN
the/DT
Northeast/NNP
will/MD
need/VB
the/DT
stable/JJ
newsprint/NN
prices/NNS
to/TO
ease/VB
damage/NN
from/IN
weak/JJ
ad/NN
linage/NN
./.
Mr./NNP
Atorino/NNP
at/IN
Salomon/NNP
Brothers/NNP
said/VBD
he/PRP
estimates/VBZ
that/IN
Times/NNP
Mirror/NNP
Co./NNP
's/POS
earnings/NNS
were/VBD
down/RB
for/IN
the/DT
third/JJ
quarter/NN
,/,
because/IN
of/IN
soft/JJ
advertising/NN
levels/NNS
at/IN
its/PRP$
Long/NNP
Island/NNP
Newsday/NNP
and/CC
Hartford/NNP
Courant/NNP
newspapers/NNS
./.
Trouble/NN
on/IN
the/DT
East/NNP
Coast/NNP
was/VBD
likely/RB
offset/VBN
by/IN
improved/JJ
ad/NN
linage/NN
at/IN
the/DT
Los/NNP
Angeles/NNP
Times/NNP
,/,
which/WDT
this/DT
week/NN
also/RB
unveiled/VBD
a/DT
redesign/NN
./.
New/NNP
York/NNP
Times/NNP
Co./NNP
is/VBZ
expected/VBN
to/TO
report/VB
lower/JJR
earnings/NNS
for/IN
the/DT
third/JJ
quarter/NN
because/IN
of/IN
continued/JJ
weak/JJ
advertising/NN
levels/NNS
at/IN
its/PRP$
flagship/NN
New/NNP
York/NNP
Times/NNP
and/CC
deep/RB
discounting/NN
of/IN
newsprint/NN
at/IN
its/PRP$
affiliate/NN
,/,
Forest/NNP
Products/NNP
Group/NNP
./.
``/``
Times/NNP
Co./NNP
's/POS
regional/JJ
daily/JJ
newspapers/NNS
are/VBP
holding/VBG
up/RP
well/RB
,/,
but/CC
there/EX
is/VBZ
little/JJ
sign/NN
that/IN
things/NNS
will/MD
improve/VB
in/IN
the/DT
New/NNP
York/NNP
market/NN
,/,
''/''
said/VBD
Alan/NNP
Kassan/NNP
,/,
an/DT
analyst/NN
with/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
./.
Washington/NNP
Post/NNP
Co./NNP
is/VBZ
expected/VBN
to/TO
report/VB
improved/JJ
earnings/NNS
,/,
largely/RB
because/IN
of/IN
increased/JJ
cable/NN
revenue/NN
and/CC
publishing/NN
revenue/NN
helped/VBN
by/IN
an/DT
improved/JJ
retail/JJ
market/NN
in/IN
the/DT
Washington/NNP
area/NN
./.
According/VBG
to/TO
analysts/NNS
,/,
profits/NNS
were/VBD
also/RB
helped/VBN
by/IN
successful/JJ
cost-cutting/JJ
measures/NNS
at/IN
Newsweek/NNP
./.
The/DT
news-weekly/NN
has/VBZ
faced/VBN
heightened/JJ
competition/NN
from/IN
rival/JJ
Time/NNP
magazine/NN
and/CC
a/DT
relatively/RB
flat/JJ
magazine/NN
advertising/NN
market/NN
./.
Knight-Ridder/NNP
Inc./NNP
is/VBZ
faced/VBN
with/IN
continued/JJ
uncertainty/NN
over/IN
the/DT
pending/VBG
joint/JJ
operating/NN
agreement/NN
between/IN
its/PRP$
Detroit/NNP
Free/NNP
Press/NNP
and/CC
Gannett/NNP
's/POS
Detroit/NNP
News/NNP
,/,
and/CC
has/VBZ
told/VBN
analysts/NNS
that/IN
earnings/NNS
were/VBD
down/RB
in/IN
the/DT
third/JJ
quarter/NN
./.
However/RB
,/,
analysts/NNS
point/VBP
to/TO
positive/JJ
advertising/NN
spending/NN
at/IN
several/JJ
of/IN
its/PRP$
major/JJ
daily/JJ
newspapers/NNS
,/,
such/JJ
as/IN
the/DT
Miami/NNP
Herald/NNP
and/CC
San/NNP
Jose/NNP
Mercury/NNP
News/NNP
./.
``/``
The/DT
Miami/NNP
market/NN
is/VBZ
coming/VBG
back/RB
strong/JJ
after/IN
a/DT
tough/JJ
couple/NN
of/IN
years/NNS
''/''
when/WRB
Knight-Ridder/NNP
``/``
was/VBD
starting/VBG
up/RP
a/DT
Hispanic/JJ
edition/NN
and/CC
circulation/NN
was/VBD
falling/VBG
,/,
''/''
said/VBD
Bruce/NNP
Thorp/NNP
,/,
an/DT
analyst/NN
for/IN
Provident/NNP
National/NNP
Bank/NNP
./.
General/NNP
Motors/NNP
Corp./NNP
,/,
in/IN
a/DT
series/NN
of/IN
moves/NNS
that/WDT
angered/VBD
union/NN
officials/NNS
in/IN
the/DT
U.S./NNP
and/CC
Canada/NNP
,/,
has/VBZ
signaled/VBN
that/IN
as/RB
many/JJ
as/IN
five/CD
North/JJ
American/JJ
assembly/NN
plants/NNS
may/MD
not/RB
survive/VB
the/DT
mid-1990s/NNS
as/IN
the/DT
corporation/NN
struggles/VBZ
to/TO
cut/VB
its/PRP$
excess/JJ
vehicle-making/JJ
capacity/NN
./.
In/IN
announcements/NNS
to/TO
workers/NNS
late/RB
last/JJ
week/NN
,/,
GM/NNP
effectively/RB
signed/VBD
death/NN
notices/NNS
for/IN
two/CD
full-sized/JJ
van/NN
assembly/NN
plants/NNS
,/,
and/CC
cast/VBD
serious/JJ
doubt/NN
on/IN
the/DT
futures/NNS
of/IN
three/CD
U.S./NNP
car/NN
factories/NNS
./.
GM/NNP
is/VBZ
under/IN
intense/JJ
pressure/NN
to/TO
close/VB
factories/NNS
that/WDT
became/VBD
unprofitable/JJ
as/IN
the/DT
giant/JJ
auto/NN
maker/NN
's/POS
U.S./NNP
market/NN
share/NN
skidded/VBD
during/IN
the/DT
past/JJ
decade/NN
./.
The/DT
company/NN
,/,
currently/RB
using/VBG
about/RB
80/CD
%/NN
of/IN
its/PRP$
North/JJ
American/JJ
vehicle/NN
capacity/NN
,/,
has/VBZ
vowed/VBN
it/PRP
will/MD
run/VB
at/IN
100/CD
%/NN
of/IN
capacity/NN
by/IN
1992/CD
./.
Just/RB
a/DT
month/NN
ago/RB
,/,
GM/NNP
announced/VBD
it/PRP
would/MD
make/VB
an/DT
aging/VBG
assembly/NN
plant/NN
in/IN
Lakewood/NNP
,/,
Ga./NNP
,/,
the/DT
eighth/JJ
U.S./NNP
assembly/NN
facility/NN
to/TO
close/VB
since/IN
1987/CD
./.
Now/RB
,/,
GM/NNP
appears/VBZ
to/TO
be/VB
stepping/VBG
up/RP
the/DT
pace/NN
of/IN
its/PRP$
factory/NN
consolidation/NN
to/TO
get/VB
in/IN
shape/NN
for/IN
the/DT
1990s/NNS
./.
One/CD
reason/NN
is/VBZ
mounting/VBG
competition/NN
from/IN
new/JJ
Japanese/JJ
car/NN
plants/NNS
in/IN
the/DT
U.S./NNP
that/WDT
are/VBP
pouring/VBG
out/RP
more/JJR
than/IN
one/CD
million/CD
vehicles/NNS
a/DT
year/NN
at/IN
costs/NNS
lower/JJR
than/IN
GM/NNP
can/MD
match/VB
./.
Another/DT
is/VBZ
that/IN
United/NNP
Auto/NNP
Workers/NNPS
union/NN
officials/NNS
have/VBP
signaled/VBN
they/PRP
want/VBP
tighter/JJR
no-layoff/JJ
provisions/NNS
in/IN
the/DT
new/JJ
Big/NNP
Three/CD
national/JJ
contract/NN
that/WDT
will/MD
be/VB
negotiated/VBN
next/JJ
year/NN
./.
GM/NNP
officials/NNS
want/VBP
to/TO
get/VB
their/PRP$
strategy/NN
to/TO
reduce/VB
capacity/NN
and/CC
the/DT
work/NN
force/NN
in/IN
place/NN
before/IN
those/DT
talks/NNS
begin/VBP
./.
The/DT
problem/NN
,/,
however/RB
,/,
is/VBZ
that/IN
GM/NNP
's/POS
moves/NNS
are/VBP
coming/VBG
at/IN
a/DT
time/NN
when/WRB
UAW/NNP
leaders/NNS
are/VBP
trying/VBG
to/TO
silence/VB
dissidents/NNS
who/WP
charge/VBP
the/DT
union/NN
is/VBZ
too/RB
passive/JJ
in/IN
the/DT
face/NN
of/IN
GM/NNP
layoffs/NNS
./.
Against/IN
that/DT
backdrop/NN
,/,
UAW/NNP
Vice/NNP
President/NNP
Stephen/NNP
P./NNP
Yokich/NNP
,/,
who/WP
recently/RB
became/VBD
head/NN
of/IN
the/DT
union/NN
's/POS
GM/NNP
department/NN
,/,
issued/VBD
a/DT
statement/NN
Friday/NNP
blasting/VBG
GM/NNP
's/POS
``/``
flagrant/JJ
insensitivity/NN
''/''
toward/IN
union/NN
members/NNS
./.
The/DT
auto/NN
maker/NN
's/POS
decision/NN
to/TO
let/VB
word/NN
of/IN
the/DT
latest/JJS
shutdowns/NNS
and/CC
product/NN
reassignments/NNS
trickle/VBP
out/RP
in/IN
separate/JJ
communiques/NNS
to/TO
the/DT
affected/JJ
plants/NNS
showed/VBD
``/``
disarray/NN
''/''
and/CC
an/DT
``/``
inability/NN
or/CC
unwillingness/NN
to/TO
provide/VB
consistent/JJ
information/NN
,/,
''/''
Mr./NNP
Yokich/NNP
said/VBD
./.
GM/NNP
officials/NNS
told/VBD
workers/NNS
late/RB
last/JJ
week/NN
of/IN
the/DT
following/JJ
moves/NNS
:/:
Production/NN
of/IN
full-sized/JJ
vans/NNS
will/MD
be/VB
consolidated/VBN
into/IN
a/DT
single/JJ
plant/NN
in/IN
Flint/NNP
,/,
Mich/NNP
./.
That/DT
means/VBZ
two/CD
plants/NNS
--/:
one/CD
in/IN
Scarborough/NNP
,/,
Ontario/NNP
,/,
and/CC
the/DT
other/JJ
in/IN
Lordstown/NNP
,/,
Ohio/NNP
--/:
probably/RB
will/MD
be/VB
shut/VBN
down/RP
after/IN
the/DT
end/NN
of/IN
1991/CD
./.
The/DT
shutdowns/NNS
will/MD
idle/VB
about/RB
3,000/CD
Canadian/JJ
assembly/NN
workers/NNS
and/CC
about/JJ
2,500/CD
workers/NNS
in/IN
Ohio/NNP
./.
Robert/NNP
White/NNP
,/,
Canadian/NNP
Auto/NNP
Workers/NNP
union/NN
president/NN
,/,
used/VBD
the/DT
impending/JJ
Scarborough/NNP
shutdown/NN
to/TO
criticize/VB
the/DT
U.S.-Canada/NNP
free/JJ
trade/NN
agreement/NN
and/CC
its/PRP$
champion/NN
,/,
Prime/NNP
Minister/NNP
Brian/NNP
Mulroney/NNP
./.
But/CC
Canadian/JJ
auto/NN
workers/NNS
may/MD
benefit/VB
from/IN
a/DT
separate/JJ
GM/NNP
move/NN
that/WDT
affects/VBZ
three/CD
U.S./NNP
car/NN
plants/NNS
and/CC
one/CD
in/IN
Quebec/NN
./.
Workers/NNS
at/IN
plants/NNS
in/IN
Van/NNP
Nuys/NNP
,/,
Calif./NNP
,/,
Oklahoma/NNP
City/NNP
and/CC
Pontiac/NNP
,/,
Mich./NNP
,/,
were/VBD
told/VBN
their/PRP$
facilities/NNS
are/VBP
no/RB
longer/RBR
being/NN
considered/VBN
to/TO
build/VB
the/DT
next/JJ
generation/NN
of/IN
the/DT
Pontiac/NNP
Firebird/NNP
and/CC
Chevrolet/NNP
Camaro/NNP
muscle/NN
cars/NNS
./.
GM/NNP
is/VBZ
studying/VBG
whether/IN
it/PRP
can/MD
build/VB
the/DT
new/JJ
Camaro-Firebird/NNP
profitably/RB
at/IN
a/DT
plant/NN
in/IN
St./NNP
Therese/NNP
,/,
Quebec/NNP
,/,
company/NN
and/CC
union/NN
officials/NNS
said/VBD
./.
That/DT
announcement/NN
left/VBD
union/NN
officials/NNS
in/IN
Van/NNP
Nuys/NNP
and/CC
Oklahoma/NNP
City/NNP
uncertain/JJ
about/IN
their/PRP$
futures/NNS
./.
The/DT
Van/NNP
Nuys/NNP
plant/NN
,/,
which/WDT
employs/VBZ
about/RB
3,000/CD
workers/NNS
,/,
does/VBZ
n't/RB
have/VB
a/DT
product/NN
to/TO
build/VB
after/IN
1993/CD
./.
Jerry/NNP
Shrieves/NNP
,/,
UAW/NNP
local/JJ
president/NN
,/,
said/VBD
the/DT
facility/NN
was/VBD
asked/VBN
to/TO
draw/VB
up/RP
plans/NNS
to/TO
continue/VB
working/VBG
as/IN
a/DT
``/``
flex/JJ
plant/NN
,/,
''/''
which/WDT
could/MD
build/VB
several/JJ
different/JJ
types/NNS
of/IN
products/NNS
on/IN
short/JJ
notice/NN
to/TO
satisfy/VB
demand/NN
./.
At/IN
the/DT
Oklahoma/NNP
City/NNP
plant/NN
,/,
which/WDT
employs/VBZ
about/RB
6,000/CD
workers/NNS
building/VBG
the/DT
eight-year-old/JJ
A-body/JJ
mid-sized/JJ
cars/NNS
,/,
Steve/NNP
Featherston/NNP
,/,
UAW/NNP
local/JJ
vice/NN
president/NN
,/,
said/VBD
the/DT
plant/NN
has/VBZ
no/DT
new/JJ
product/NN
lined/VBN
up/RP
,/,
and/CC
``/``
none/NN
of/IN
us/PRP
knows/VBZ
''/''
when/WRB
the/DT
A-body/JJ
cars/NNS
will/MD
die/VB
./.
He/PRP
said/VBD
he/PRP
believes/VBZ
GM/NNP
has/VBZ
plans/NNS
to/TO
keep/VB
building/VBG
A-body/JJ
cars/NNS
into/IN
the/DT
mid-1990s/NNS
./.
At/IN
Pontiac/NNP
,/,
however/RB
,/,
the/DT
Camaro-Firebird/NNP
decision/NN
appears/VBZ
to/TO
erase/VB
UAW/NNP
hopes/NNS
that/IN
GM/NNP
would/MD
reopen/VB
the/DT
shuttered/JJ
assembly/NN
plant/NN
that/WDT
last/RB
built/VBD
the/DT
plastic-bodied/JJ
,/,
two-seater/JJ
Pontiac/NNP
Fiero/NNP
model/NN
./.
The/DT
Fiero/NNP
plant/NN
was/VBD
viewed/VBN
as/IN
a/DT
model/NN
of/IN
union-management/JJ
cooperation/NN
at/IN
GM/NNP
before/IN
slow/JJ
sales/NNS
of/IN
the/DT
Fiero/NNP
forced/VBD
the/DT
company/NN
to/TO
close/VB
the/DT
factory/NN
last/JJ
year/NN
./.
Union/NN
officials/NNS
have/VB
taken/VBN
a/DT
beating/NN
politically/RB
as/IN
a/DT
result/NN
./.
Dissident/NNP
UAW/NNP
members/NNS
have/VBP
used/VBN
the/DT
Fiero/NNP
plant/NN
as/IN
a/DT
symbol/NN
of/IN
labor-management/JJ
cooperation/NN
's/POS
failure/NN
./.
Institut/NNP
Merieux/NNP
S.A./NNP
of/IN
France/NNP
said/VBD
the/DT
Canadian/JJ
government/NN
raised/VBD
an/DT
obstacle/NN
to/TO
its/PRP$
proposed/JJ
acquisition/NN
of/IN
Connaught/NNP
BioSciences/NNP
Inc./NNP
for/IN
942/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
801.6/CD
million/CD
Merieux/NNP
said/VBD
the/DT
government/NN
's/POS
minister/NN
of/IN
industry/NN
,/,
science/NN
and/CC
technology/NN
told/VBD
it/PRP
that/IN
he/PRP
was/VBD
n't/RB
convinced/JJ
that/IN
the/DT
purchase/NN
is/VBZ
likely/JJ
to/TO
be/VB
of/IN
``/``
net/JJ
benefit/NN
''/''
to/TO
Canada/NNP
./.
Canadian/JJ
investment/NN
rules/NNS
require/VBP
that/IN
big/JJ
foreign/JJ
takeovers/NNS
meet/VB
that/DT
standard/NN
./.
The/DT
French/JJ
company/NN
said/VBD
the/DT
government/NN
gave/VBD
it/PRP
30/CD
days/NNS
in/IN
which/WDT
to/TO
submit/VB
information/NN
to/TO
further/RB
support/VB
its/PRP$
takeover/NN
plan/NN
./.
Both/DT
Merieux/NNP
and/CC
Connaught/NNP
are/VBP
biotechnology/NN
research/NN
and/CC
vaccine/NN
manufacturing/NN
concerns/NNS
./.
The/DT
government/NN
's/POS
action/NN
was/VBD
unusual/JJ
./.
Alan/NNP
Nymark/NNP
,/,
executive/JJ
vice/NN
president/NN
of/IN
Investment/NNP
Canada/NNP
,/,
which/WDT
oversees/VBZ
foreign/JJ
takeovers/NNS
,/,
said/VBD
it/PRP
marked/VBD
the/DT
first/JJ
time/NN
in/IN
its/PRP$
four-year/JJ
history/NN
that/IN
the/DT
agency/NN
has/VBZ
made/VBN
an/DT
adverse/JJ
net-benefit/JJ
decision/NN
about/IN
the/DT
acquisition/NN
of/IN
a/DT
publicly/RB
traded/VBN
company/NN
./.
He/PRP
said/VBD
it/PRP
has/VBZ
reached/VBN
the/DT
same/JJ
conclusions/NNS
about/IN
some/DT
attempts/NNS
to/TO
buy/VB
closely/RB
held/VBN
concerns/NNS
,/,
but/CC
eventually/RB
allowed/VBD
those/DT
acquisitions/NNS
to/TO
proceed/VB
./.
``/``
This/DT
is/VBZ
n't/RB
a/DT
change/NN
in/IN
government/NN
policy/NN
;/:
this/DT
provision/NN
has/VBZ
been/VBN
used/VBN
before/RB
,/,
''/''
said/VBD
Jodi/NNP
Redmond/NNP
,/,
press/NN
secretary/NN
for/IN
Harvie/NNP
Andre/NNP
,/,
Canada/NNP
's/POS
minister/NN
of/IN
industry/NN
,/,
science/NN
and/CC
technology/NN
./.
Mr./NNP
Andre/NNP
issued/VBD
the/DT
ruling/NN
based/VBN
on/IN
a/DT
recommendation/NN
by/IN
Investment/NNP
Canada/NNP
./.
Spokesmen/NNP
for/IN
Merieux/NNP
and/CC
Connaught/NNP
said/VBD
they/PRP
had/VBD
n't/RB
been/VBN
informed/VBN
of/IN
specific/JJ
areas/NNS
of/IN
concern/NN
by/IN
either/CC
the/DT
government/NN
or/CC
Investment/NNP
Canada/NNP
,/,
but/CC
added/VBD
they/PRP
hope/VBP
to/TO
have/VB
more/JJR
information/NN
early/RB
this/DT
week/NN
./.
Investment/NNP
Canada/NNP
declined/VBD
to/TO
comment/VB
on/IN
the/DT
reasons/NNS
for/IN
the/DT
government/NN
decision/NN
./.
Viren/NNP
Mehta/NNP
,/,
a/DT
partner/NN
with/IN
Mehta/NNP
&/CC
Isaly/NNP
,/,
a/DT
New/NNP
York-based/JJ
pharmaceutical/JJ
industry/NN
research/NN
firm/NN
,/,
said/VBD
the/DT
government/NN
's/POS
ruling/NN
was/VBD
n't/RB
unexpected/JJ
./.
``/``
This/DT
has/VBZ
become/VBN
a/DT
very/RB
politicized/JJ
deal/NN
,/,
concerning/VBG
Canada/NNP
's/POS
only/JJ
large/JJ
,/,
world-class/JJ
bio-research/NN
or/CC
pharmaceutical/JJ
company/NN
,/,
''/''
Mr./NNP
Mehta/NNP
said/VBD
./.
Mr./NNP
Mehta/NNP
said/VBD
the/DT
move/NN
that/WDT
could/MD
allow/VB
the/DT
transaction/NN
to/TO
go/VB
ahead/RB
as/IN
planned/VBN
could/MD
be/VB
an/DT
out-of-court/JJ
settlement/NN
of/IN
Connaught/NNP
's/POS
dispute/NN
with/IN
the/DT
University/NNP
of/IN
Toronto/NNP
./.
The/DT
University/NNP
is/VBZ
seeking/VBG
to/TO
block/VB
the/DT
acquisition/NN
of/IN
Connaught/NNP
by/IN
foreign/JJ
interests/NNS
,/,
citing/VBG
concerns/NNS
about/IN
the/DT
amount/NN
of/IN
research/NN
that/WDT
would/MD
be/VB
done/VBN
in/IN
Canada/NNP
./.
The/DT
university/NN
is/VBZ
considering/VBG
a/DT
settlement/NN
proposal/NN
made/VBN
by/IN
Connaught/NNP
./.
While/IN
neither/DT
side/NN
will/MD
disclose/VB
its/PRP$
contents/NNS
,/,
Mr./NNP
Mehta/NNP
expects/VBZ
it/PRP
to/TO
contain/VB
more/RBR|JJR
specific/JJ
guarantees/NNS
on/IN
research/NN
and/CC
development/NN
spending/NN
levels/NNS
in/IN
Canada/NNP
than/IN
Merieux/NNP
offered/VBD
to/TO
Investment/NNP
Canada/NNP
./.
Some/DT
analysts/NNS
,/,
such/JJ
as/IN
Murray/NNP
Grossner/NNP
of/IN
Toronto-based/JJ
Richardson/NNP
Greenshields/NNP
Inc./NNP
,/,
believe/VBP
the/DT
government/NN
ruling/NN
leaves/VBZ
the/DT
door/NN
open/JJ
for/IN
other/JJ
bidders/NNS
,/,
such/JJ
as/IN
Switzerland/NNP
's/POS
Ciba-Geigy/NNP
and/CC
Chiron/NNP
Corp./NNP
of/IN
Emeryville/NNP
,/,
Calif/NNP
./.
Officials/NNS
for/IN
the/DT
two/CD
concerns/NNS
,/,
which/WDT
are/VBP
bidding/VBG
C$/$
30/CD
a/DT
share/NN
for/IN
Connaught/NNP
,/,
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
French/JJ
state-owned/JJ
Rhone-Poulenc/NNP
S.A./NNP
holds/VBZ
51/CD
%/NN
of/IN
Merieux/NNP
./.
Weatherford/NNP
International/NNP
Inc./NNP
said/VBD
it/PRP
canceled/VBD
plans/NNS
for/IN
a/DT
preferred-stock/NN
swap/NN
but/CC
may/MD
resume/VB
payment/NN
of/IN
dividends/NNS
on/IN
the/DT
stock/NN
,/,
and/CC
added/VBD
that/IN
it/PRP
expects/VBZ
to/TO
publicly/RB
offer/VB
about/RB
10/CD
million/CD
common/JJ
shares/NNS
./.
The/DT
company/NN
said/VBD
it/PRP
planned/VBD
to/TO
offer/VB
an/DT
undetermined/JJ
number/NN
of/IN
common/JJ
shares/NNS
in/IN
exchange/NN
for/IN
the/DT
585,000/CD
shares/NNS
of/IN
its/PRP$
preferred/JJ
stock/NN
outstanding/JJ
./.
The/DT
exchange/NN
ratio/NN
was/VBD
never/RB
established/VBN
./.
Weatherford/NNP
said/VBD
market/NN
conditions/NNS
led/VBD
to/TO
the/DT
cancellation/NN
of/IN
the/DT
planned/JJ
exchange/NN
./.
The/DT
energy-services/NNS
concern/NN
said/VBD
,/,
however/RB
,/,
that/IN
in/IN
January/NNP
1990/CD
,/,
it/PRP
may/MD
resume/VB
payments/NNS
of/IN
dividends/NNS
on/IN
the/DT
preferred/JJ
stock/NN
./.
Weatherford/NNP
suspended/VBD
its/PRP$
preferred-dividend/JJ
payment/NN
in/IN
October/NNP
1985/CD
and/CC
said/VBD
it/PRP
has/VBZ
n't/RB
any/DT
plans/NNS
to/TO
catch/VB
up/RP
on/IN
dividends/NNS
in/IN
arrears/NNS
about/RB
$/$
6/CD
million/CD
,/,
but/CC
will/MD
do/VB
so/RB
some/DT
time/NN
in/IN
the/DT
future/NN
./.
Additionally/RB
,/,
the/DT
company/NN
said/VBD
it/PRP
filed/VBD
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
for/IN
the/DT
proposed/JJ
offering/NN
of/IN
10/CD
million/CD
shares/NNS
of/IN
common/JJ
stock/NN
,/,
expected/VBN
to/TO
be/VB
offered/VBN
in/IN
November/NNP
./.
The/DT
company/NN
said/VBD
Salomon/NNP
Brothers/NNP
Inc./NNP
and/CC
Howard/NNP
,/,
Weil/NNP
,/,
Labouisse/NNP
,/,
Friedrichs/NNP
Inc./NNP
,/,
underwriters/NNS
for/IN
the/DT
offering/NN
,/,
were/VBD
granted/VBN
an/DT
option/NN
to/TO
buy/VB
as/RB
much/JJ
as/IN
an/DT
additional/JJ
1.5/CD
million/CD
shares/NNS
to/TO
cover/VB
over-allotments/NNS
./.
Proceeds/NNS
will/MD
be/VB
used/VBN
to/TO
eliminate/VB
and/CC
restructure/VB
bank/NN
debt/NN
./.
Weatherford/NNP
currently/RB
has/VBZ
approximately/RB
11.1/CD
million/CD
common/JJ
shares/NNS
outstanding/JJ
./.
Earnings/NNS
for/IN
most/JJS
of/IN
the/DT
nation/NN
's/POS
major/JJ
pharmaceutical/JJ
makers/NNS
are/VBP
believed/VBN
to/TO
have/VB
moved/VBN
ahead/RB
briskly/RB
in/IN
the/DT
third/JJ
quarter/NN
,/,
as/IN
companies/NNS
with/IN
newer/JJR
,/,
big-selling/JJ
prescription/NN
drugs/NNS
fared/VBD
especially/RB
well/RB
./.
For/IN
the/DT
third/JJ
consecutive/JJ
quarter/NN
,/,
however/RB
,/,
most/JJS
of/IN
the/DT
companies/NNS
'/POS
revenues/NNS
were/VBD
battered/VBN
by/IN
adverse/JJ
foreign-currency/NN
translations/NNS
as/IN
a/DT
result/NN
of/IN
the/DT
strong/JJ
dollar/NN
abroad/RB
./.
Analysts/NNS
said/VBD
that/IN
Merck/NNP
&/CC
Co./NNP
,/,
Eli/NNP
Lilly/NNP
&/CC
Co./NNP
,/,
Warner-Lambert/NNP
Co./NNP
and/CC
the/DT
Squibb/NNP
Corp./NNP
unit/NN
of/IN
Bristol-Myers/NNP
Squibb/NNP
Co./NNP
all/DT
benefited/VBD
from/IN
strong/JJ
sales/NNS
of/IN
relatively/RB
new/JJ
,/,
higher-priced/JJ
medicines/NNS
that/WDT
provide/VBP
wide/JJ
profit/NN
margins/NNS
./.
Less/RBR
robust/JJ
earnings/NNS
at/IN
Pfizer/NNP
Inc./NNP
and/CC
Upjohn/NNP
Co./NNP
were/VBD
attributed/VBN
to/TO
those/DT
companies/NNS
'/POS
older/JJR
products/NNS
,/,
many/JJ
of/IN
which/WDT
face/VBP
stiffening/JJ
competition/NN
from/IN
generic/JJ
drugs/NNS
and/CC
other/JJ
medicines/NNS
./.
Joseph/NNP
Riccardo/NNP
,/,
an/DT
analyst/NN
with/IN
Bear/NNP
,/,
Stearns/NNP
&/CC
Co./NNP
,/,
said/VBD
that/IN
over/IN
the/DT
past/JJ
few/JJ
years/NNS
most/JJS
drug/NN
makers/NNS
have/VBP
shed/VBN
their/PRP$
slow-growing/JJ
businesses/NNS
and/CC
instituted/VBN
other/JJ
cost/NN
savings/NNS
,/,
such/JJ
as/IN
consolidating/VBG
manufacturing/NN
plants/NNS
and/CC
administrative/JJ
staffs/NNS
./.
As/IN
a/DT
result/NN
,/,
``/``
major/JJ
new/JJ
products/NNS
are/VBP
having/VBG
significant/JJ
impact/NN
,/,
even/RB
on/IN
a/DT
company/NN
with/IN
very/RB
large/JJ
revenues/NNS
,/,
''/''
Mr./NNP
Riccardo/NNP
said/VBD
./.
Analysts/NNS
said/VBD
profit/NN
for/IN
the/DT
dozen/NN
or/CC
so/RB
big/JJ
drug/NN
makers/NNS
,/,
as/IN
a/DT
group/NN
,/,
is/VBZ
estimated/VBN
to/TO
have/VB
climbed/VBN
between/IN
11/CD
%/NN
and/CC
14/CD
%/NN
./.
While/IN
that/DT
's/VBZ
not/RB
spectacular/JJ
,/,
Neil/NNP
Sweig/NNP
,/,
an/DT
analyst/NN
with/IN
Prudential/NNP
Bache/NNP
,/,
said/VBD
that/IN
the/DT
rate/NN
of/IN
growth/NN
will/MD
``/``
look/VB
especially/RB
good/JJ
as/IN
compared/VBN
to/TO
other/JJ
companies/NNS
if/IN
the/DT
economy/NN
turns/VBZ
downward/RB
./.
''/''
Mr./NNP
Sweig/NNP
estimated/VBD
that/IN
Merck/NNP
's/POS
profit/NN
for/IN
the/DT
quarter/NN
rose/VBD
by/IN
about/RB
22/CD
%/NN
,/,
propelled/VBN
by/IN
sales/NNS
of/IN
its/PRP$
line-up/NN
of/IN
fast-growing/JJ
prescription/NN
drugs/NNS
,/,
including/VBG
its/PRP$
anti-cholesterol/JJ
drug/NN
,/,
Mevacor/NNP
;/:
a/DT
high/JJ
blood/NN
pressure/NN
medicine/NN
,/,
Vasotec/NNP
;/:
Primaxin/NNP
,/,
an/DT
antibiotic/NN
,/,
and/CC
Pepcid/NNP
,/,
an/DT
anti-ulcer/JJ
medication/NN
./.
Profit/NN
climbed/VBD
even/RB
though/IN
Merck/NNP
's/POS
sales/NNS
were/VBD
reduced/VBN
by/IN
``/``
one/CD
to/TO
three/CD
percentage/NN
points/NNS
''/''
as/IN
a/DT
result/NN
of/IN
the/DT
strong/JJ
dollar/NN
,/,
Mr./NNP
Sweig/NNP
said/VBD
./.
In/IN
the/DT
third/JJ
quarter/NN
of/IN
1988/CD
,/,
Merck/NNP
earned/VBD
$/$
311.8/CD
million/CD
,/,
or/CC
79/CD
cents/NNS
a/DT
share/NN
./.
In/IN
Rahway/NNP
,/,
N.J./NNP
,/,
a/DT
Merck/NNP
spokesman/NN
said/VBD
the/DT
company/NN
does/VBZ
n't/RB
make/VB
earnings/NN
projections/NNS
./.
Mr./NNP
Sweig/NNP
said/VBD
he/PRP
estimated/VBD
that/IN
Lilly/NNP
's/POS
earnings/NNS
for/IN
the/DT
quarter/NN
jumped/VBD
about/RB
20/CD
%/NN
,/,
largely/RB
because/IN
of/IN
the/DT
performance/NN
of/IN
its/PRP$
new/JJ
anti-depressant/NN
Prozac/NNP
./.
The/DT
drug/NN
,/,
introduced/VBD
last/JJ
year/NN
,/,
is/VBZ
expected/VBN
to/TO
generate/VB
sales/NNS
of/IN
about/RB
$/$
300/CD
million/CD
this/DT
year/NN
./.
``/``
It/PRP
's/VBZ
turning/VBG
out/RP
to/TO
be/VB
a/DT
real/JJ
blockbuster/NN
,/,
''/''
Mr./NNP
Sweig/NNP
said/VBD
./.
In/IN
last/JJ
year/NN
's/POS
third/JJ
quarter/NN
,/,
Lilly/NNP
earned/VBD
$/$
171.4/CD
million/CD
,/,
or/CC
$/$
1.20/CD
a/DT
share/NN
./.
In/IN
Indianapolis/NNP
,/,
Lilly/NNP
declined/VBD
comment/NN
./.
Several/JJ
analysts/NNS
said/VBD
they/PRP
expected/VBD
Warner-Lambert/NNP
's/POS
profit/NN
also/RB
to/TO
increase/VB
by/IN
more/JJR
than/IN
20/CD
%/NN
from/IN
$/$
87.7/CD
million/CD
,/,
or/CC
$/$
1.25/CD
a/DT
share/NN
,/,
it/PRP
reported/VBD
in/IN
the/DT
like/JJ
period/NN
last/JJ
year/NN
./.
The/DT
company/NN
is/VBZ
praised/VBN
by/IN
analysts/NNS
for/IN
sharply/RB
lowering/VBG
its/PRP$
costs/NNS
in/IN
recent/JJ
years/NNS
and/CC
shedding/VBG
numerous/JJ
companies/NNS
with/IN
low/JJ
profit/NN
margins/NNS
./.
The/DT
company/NN
's/POS
lean/JJ
operation/NN
,/,
analysts/NNS
said/VBD
,/,
allowed/VBD
sharp-rising/JJ
sales/NNS
from/IN
its/PRP$
cholesterol/NN
drug/NN
,/,
Lopid/NNP
,/,
to/TO
power/VB
earnings/NNS
growth/NN
./.
Lopid/NNP
sales/NNS
are/VBP
expected/VBN
to/TO
be/VB
about/RB
$/$
300/CD
million/CD
this/DT
year/NN
,/,
up/RB
from/IN
$/$
190/CD
million/CD
in/IN
1988/CD
./.
In/IN
Morris/NNP
Plains/NNP
,/,
N.J./NNP
,/,
a/DT
spokesman/NN
for/IN
the/DT
company/NN
said/VBD
the/DT
analysts/NNS
'/POS
projections/NNS
are/VBP
``/``
in/IN
the/DT
ballpark/NN
./.
''/''
Squibb/NNP
's/POS
profit/NN
,/,
estimated/VBN
by/IN
analysts/NNS
to/TO
be/VB
about/RB
18/CD
%/NN
above/IN
the/DT
$/$
123/CD
million/CD
,/,
or/CC
$/$
1.25/CD
a/DT
share/NN
,/,
it/PRP
earned/VBD
in/IN
the/DT
third/JJ
quarter/NN
of/IN
1988/CD
,/,
was/VBD
the/DT
result/NN
of/IN
especially/RB
strong/JJ
sales/NNS
of/IN
its/PRP$
Capoten/NNP
drug/NN
for/IN
treating/VBG
high/JJ
blood/NN
pressure/NN
and/CC
other/JJ
heart/NN
disease/NN
./.
The/DT
company/NN
was/VBD
officially/RB
merged/VBN
with/IN
Bristol-Myers/NNP
Co./NNP
earlier/RBR
this/DT
month/NN
./.
Bristol-Myers/NNP
declined/VBD
to/TO
comment/VB
./.
Mr./NNP
Riccardo/NNP
of/IN
Bear/NNP
Stearns/NNP
said/VBD
that/IN
Schering-Plough/NNP
Corp./NNP
's/POS
expected/JJ
profit/NN
rise/NN
of/IN
about/RB
18/CD
%/NN
to/TO
20/CD
%/NN
,/,
and/CC
Bristol-Meyers/NNP
's/POS
expected/JJ
profit/NN
increase/NN
of/IN
about/RB
13/CD
%/NN
are/VBP
largely/RB
because/IN
``/``
those/DT
companies/NNS
are/VBP
really/RB
managed/VBN
well/RB
./.
''/''
ScheringPlough/NN
earned/VBD
$/$
94.4/CD
million/CD
,/,
or/CC
84/CD
cents/NNS
a/DT
share/NN
,/,
while/IN
Bristol-Myers/NNP
earned/VBD
$/$
232.3/CD
million/CD
,/,
or/CC
81/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
like/JJ
period/NN
a/DT
year/NN
earlier/RBR
./.
In/IN
Madison/NNP
,/,
N.J./NNP
,/,
a/DT
spokesman/NN
for/IN
Schering-Plough/NNP
said/VBD
the/DT
company/NN
has/VBZ
``/``
no/DT
problems/NNS
''/''
with/IN
the/DT
average/JJ
estimate/NN
by/IN
a/DT
analysts/NNS
that/IN
third-quarter/JJ
earnings/NNS
per/IN
share/NN
rose/VBD
by/IN
about/RB
19/CD
%/NN
,/,
to/TO
$/$
1/CD
./.
The/DT
company/NN
expects/VBZ
to/TO
achieve/VB
the/DT
20/CD
%/NN
increase/NN
in/IN
full-year/JJ
earnings/NNS
per/IN
share/NN
,/,
as/IN
it/PRP
projected/VBD
in/IN
the/DT
spring/NN
,/,
the/DT
spokesman/NN
said/VBD
./.
Meanwhile/RB
,/,
analysts/NNS
said/VBD
Pfizer/NNP
's/POS
recent/JJ
string/NN
of/IN
lackluster/JJ
quarterly/JJ
performances/NNS
continued/VBD
,/,
as/IN
earnings/NNS
in/IN
the/DT
quarter/NN
were/VBD
expected/VBN
to/TO
decline/VB
by/IN
about/RB
5/CD
%/NN
./.
Sales/NNP
of/IN
Pfizer/NNP
's/POS
important/JJ
drugs/NNS
,/,
Feldene/NNP
for/IN
treating/VBG
arthritis/NN
,/,
and/CC
Procardia/NNP
,/,
a/DT
heart/NN
medicine/NN
,/,
have/VBP
shrunk/VBN
because/RB
of/IN
increased/JJ
competition/NN
./.
``/``
The/DT
strong/JJ
dollar/NN
hurt/VBD
Pfizer/NNP
a/DT
lot/NN
,/,
too/RB
,/,
''/''
Mr./NNP
Sweig/NNP
said/VBD
./.
In/IN
the/DT
third/JJ
quarter/NN
last/JJ
year/NN
,/,
Pfizer/NNP
earned/VBD
$/$
216.8/CD
million/CD
,/,
or/CC
$/$
1.29/CD
a/DT
share/NN
./.
In/IN
New/NNP
York/NNP
,/,
the/DT
company/NN
declined/VBD
comment/NN
./.
Analysts/NNS
said/VBD
they/PRP
expected/VBD
Upjohn/NNP
's/POS
profit/NN
to/TO
be/VB
flat/JJ
or/CC
rise/VB
by/IN
only/RB
about/RB
2/CD
%/NN
to/TO
4/CD
%/NN
as/IN
compared/VBN
with/IN
$/$
89.6/CD
million/CD
,/,
or/CC
49/CD
cents/NNS
a/DT
share/NN
,/,
it/PRP
earned/VBD
a/DT
year/NN
ago/RB
./.
Upjohn/NNP
's/POS
biggest-selling/JJ
drugs/NNS
are/VBP
Xanax/NNP
,/,
a/DT
tranquilizer/NN
,/,
and/CC
Halcion/NNP
,/,
a/DT
sedative/NN
./.
Sales/NNS
of/IN
both/DT
drugs/NNS
have/VBP
been/VBN
hurt/VBN
by/IN
new/JJ
state/NN
laws/NNS
restricting/VBG
the/DT
prescriptions/NNS
of/IN
certain/JJ
tranquilizing/JJ
medicines/NNS
and/CC
adverse/JJ
publicity/NN
about/IN
the/DT
excessive/JJ
use/NN
of/IN
the/DT
drugs/NNS
./.
Also/RB
,/,
the/DT
company/NN
's/POS
hair-growing/JJ
drug/NN
,/,
Rogaine/NNP
,/,
is/VBZ
selling/VBG
well/RB
--/:
at/IN
about/RB
$/$
125/CD
million/CD
for/IN
the/DT
year/NN
,/,
but/CC
the/DT
company/NN
's/POS
profit/NN
from/IN
the/DT
drug/NN
has/VBZ
been/VBN
reduced/VBN
by/IN
Upjohn/NNP
's/POS
expensive/JJ
print/NN
and/CC
television/NN
campaigns/NNS
for/IN
advertising/VBG|NN
,/,
analysts/NNS
said/VBD
./.
In/IN
Kalamazoo/NNP
,/,
Mich./NNP
,/,
Upjohn/NNP
declined/VBD
comment/NN
./.
Amid/IN
a/DT
crowd/NN
of/IN
crashing/VBG
stocks/NNS
,/,
Relational/NNP
Technology/NNP
Inc./NNP
's/POS
stock/NN
fell/VBD
particularly/RB
hard/RB
Friday/NNP
,/,
dropping/VBG
23/CD
%/NN
because/IN
its/PRP$
problems/NNS
were/VBD
compounded/VBN
by/IN
disclosure/NN
of/IN
an/DT
unexpected/JJ
loss/NN
for/IN
its/PRP$
fiscal/JJ
first/JJ
quarter/NN
./.
The/DT
database/NN
software/NN
company/NN
said/VBD
it/PRP
expects/VBZ
a/DT
$/$
2/CD
million/CD
net/JJ
loss/NN
for/IN
the/DT
fiscal/JJ
first/JJ
quarter/NN
ended/VBN
Sept./NNP
30/CD
./.
It/PRP
said/VBD
analysts/NNS
had/VBD
been/VBN
expecting/VBG
a/DT
small/JJ
profit/NN
for/IN
the/DT
period/NN
./.
Revenue/NN
is/VBZ
expected/VBN
to/TO
be/VB
``/``
up/RB
modestly/RB
''/''
from/IN
the/DT
$/$
26.5/CD
million/CD
reported/VBN
a/DT
year/NN
ago/RB
./.
Relational/NNP
Technology/NNP
reported/VBD
net/JJ
income/NN
of/IN
$/$
1.5/CD
million/CD
,/,
or/CC
12/CD
cents/NNS
a/DT
share/NN
,/,
in/IN
the/DT
year-earlier/JJ
period/NN
./.
``/``
While/IN
our/PRP$
international/JJ
operations/NNS
showed/VBD
strong/JJ
growth/NN
,/,
our/PRP$
domestic/JJ
business/NN
was/VBD
substantially/RB
below/IN
expectations/NNS
,/,
''/''
said/VBD
Paul/NNP
Newton/NNP
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
./.
A/DT
spokesman/NN
said/VBD
the/DT
company/NN
's/POS
first/JJ
quarter/NN
is/VBZ
historically/RB
soft/JJ
,/,
and/CC
computer/NN
companies/NNS
in/IN
general/JJ
are/VBP
experiencing/VBG
slower/JJR
sales/NNS
./.
Mr./NNP
Newton/NNP
said/VBD
he/PRP
accepted/VBD
the/DT
resignation/NN
of/IN
Thomas/NNP
Wilson/NNP
,/,
vice/NN
president/NN
of/IN
corporate/JJ
sales/NNS
,/,
and/CC
that/IN
his/PRP$
marketing/NN
responsibilities/NNS
have/VBP
been/VBN
reassigned/VBN
./.
The/DT
company/NN
said/VBD
Mr./NNP
Wilson/NNP
's/POS
resignation/NN
was/VBD
n't/RB
related/VBN
to/TO
the/DT
sales/NNS
shortfall/NN
./.
Relational/NNP
Technology/NNP
went/VBD
public/NN
in/IN
May/NNP
1988/CD
at/IN
$/$
14/CD
a/DT
share/NN
./.
It/PRP
fell/VBD
$/$
1.875/CD
a/DT
share/NN
Friday/NNP
,/,
to/TO
$/$
6.25/CD
,/,
a/DT
new/JJ
low/JJ
,/,
in/IN
over-the-counter/JJ
trading/NN
./.
Its/PRP$
high/NN
for/IN
the/DT
past/JJ
year/NN
was/VBD
$/$
16.375/CD
a/DT
share/NN
./.
In/IN
the/DT
previous/JJ
quarter/NN
,/,
the/DT
company/NN
earned/VBD
$/$
4.5/CD
million/CD
,/,
or/CC
37/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
sales/NNS
of/IN
$/$
47.2/CD
million/CD
./.
The/DT
Bronx/NNP
has/VBZ
a/DT
wonderful/JJ
botanical/JJ
garden/NN
,/,
a/DT
great/JJ
zoo/NN
,/,
its/PRP$
own/JJ
charming/JJ
Little/NNP
Italy/NNP
Arthur/NNP
Avenue/NNP
course/NN
,/,
the/DT
Yankees/NNPS
./.
However/RB
,/,
most/JJS
people/NNS
,/,
having/VBG
been/VBN
subjected/VBN
to/TO
news/NN
footage/NN
of/IN
the/DT
devastated/JJ
South/NNP
Bronx/NNP
,/,
look/VBP
at/IN
the/DT
borough/NN
the/DT
way/NN
Tom/NNP
Wolfe/NNP
's/POS
Sherman/NNP
McCoy/NNP
did/VBD
in/IN
``/``
Bonfire/NN
of/IN
the/DT
Vanities/NNS
''/''
--/:
as/IN
a/DT
wrong/JJ
turn/NN
into/IN
hell/NN
./.
But/CC
Laura/NNP
Cunningham/NNP
's/POS
Bronx/NNP
,/,
her/PRP$
childhood/NN
Bronx/NNP
of/IN
the/DT
'50s/NNS
,/,
is/VBZ
something/NN
else/RB
altogether/RB
./.
In/IN
a/DT
lovely/JJ
,/,
novelistic/JJ
memoir/NN
,/,
``/``
Sleeping/NN
Arrangements/NNS
''/''
(/(
Knopf/NNP
,/,
195/CD
pages/NNS
,/,
$/$
18.95/CD
she/PRP
remembers/VBZ
an/DT
exotic/JJ
playground/NN
,/,
peopled/VBN
mainly/RB
by/IN
Jewish/JJ
eccentrics/NNS
and/CC
the/DT
occasional/JJ
Catholic/NNP
real/JJ
oddballs/NNS
like/IN
her/PRP$
sexpot/NN
friend/NN
,/,
the/DT
hell-kitten/NN
Diana/NNP
,/,
age/NN
five/CD
Ms./NNP
Cunningham/NNP
,/,
a/DT
novelist/NN
and/CC
playwright/NN
,/,
has/VBZ
a/DT
vivid/JJ
and/CC
dramatically/RB
outsized/JJ
sense/NN
of/IN
recall/NN
./.
She/PRP
transforms/VBZ
her/PRP
``/``
Bronx/NNP
of/IN
the/DT
emotions/NNS
,/,
a/DT
place/NN
where/WRB
the/DT
flats/NNS
of/IN
mediocrity/NN
are/VBP
only/RB
relieved/VBN
by/IN
steep/JJ
descents/NNS
into/IN
hysteria/NN
''/''
into/IN
the/DT
``/``
Babylonian/NNP
Bronx/NNP
,/,
''/''
a/DT
world/NN
simmering/VBG
with/IN
sex/NN
and/CC
death/NN
and/CC
intrigue/NN
./.
In/IN
the/DT
Babylonian/NNP
Bronx/NNP
,/,
Jewish/JJ
working-class/JJ
people/NNS
lived/VBD
in/IN
drab/JJ
,/,
Soviet-style/JJ
buildings/NNS
``/``
glamorized/VBN
''/''
with/IN
names/NNS
like/IN
AnaMor/NNP
Towers/NNP
owners/NNS
Anna/NNP
and/CC
Morris/NNP
Snezak/NNP
whose/WP$
lobbies/NNS
and/CC
hallways/NNS
were/VBD
decorated/VBN
with/IN
murals/NNS
of/IN
ancient/JJ
Syrians/NNPS
and/CC
Greeks/NNPS
,/,
friezes/NNS
of/IN
Pompeii/NNP
./.
For/IN
Ms./NNP
Cunningham/NNP
the/DT
architectural/JJ
discombobulation/NN
matched/VBD
the/DT
discrepancy/NN
she/PRP
felt/VBD
living/VBG
in/IN
the/DT
AnaMor/NNP
Towers/NNP
as/IN
a/DT
little/JJ
girl/NN
:/:
``/``
.../:
outwardly/RB
ordinary/JJ
,/,
inwardly/RB
ornate/JJ
,/,
owing/VBG
all/DT
inspiration/NN
to/TO
heathen/JJ
cultures/NNS
./.
''/''
Sharp-witted/JJ
and/CC
funny/JJ
but/CC
never/RB
mean/JJ
,/,
she/PRP
's/VBZ
a/DT
memorialist/NN
a/DT
bit/NN
like/IN
Truman/NNP
Capote/NNP
,/,
if/IN
he/PRP
'd/MD
been/VBN
Jewish/JJ
and/CC
female/JJ
and/CC
less/RBR
bitchy/JJ
./.
Little/NNP
Lily/NNP
,/,
as/IN
Ms./NNP
Cunningham/NNP
calls/VBZ
herself/PRP
in/IN
the/DT
book/NN
,/,
really/RB
was/VBD
n't/RB
ordinary/JJ
./.
She/PRP
was/VBD
raised/VBN
,/,
for/IN
the/DT
first/JJ
eight/CD
years/NNS
,/,
by/IN
her/PRP$
mother/NN
,/,
Rosie/NNP
,/,
whom/WP
she/PRP
remembers/VBZ
as/IN
a/DT
loving/JJ
liar/NN
,/,
who/WP
realigned/VBD
history/NN
to/TO
explain/VB
why/WRB
Lily/NNP
's/POS
father/NN
did/VBD
n't/RB
live/VB
with/IN
them/PRP
./.
Rosie/NNP
reinvented/VBD
this/DT
man/NN
,/,
who/WP
may/MD
or/CC
may/MD
not/RB
have/VB
known/VBN
about/IN
his/PRP$
child/NN
,/,
as/IN
a/DT
war/NN
hero/NN
for/IN
Lily/NNP
's/POS
benefit/NN
./.
Rosie/NN
died/VBD
young/JJ
and/CC
Lily/NNP
has/VBZ
remembered/VBN
her/PRP
as/IN
a/DT
romantic/JJ
figure/NN
,/,
who/WP
did/VBD
n't/RB
interfere/VB
much/RB
with/IN
her/PRP$
child/NN
's/POS
education/NN
on/IN
the/DT
streets/NNS
./.
The/DT
games/NNS
Bronx/NNP
children/NNS
played/VBD
(/(
holding/VBG
kids/NNS
down/RP
and/CC
stripping/VBG
them/PRP
,/,
for/IN
example/NN
tame/JJ
by/IN
today/NN
's/POS
crack/NN
standards/NNS
,/,
but/CC
Ms./NNP
Cunningham/NNP
makes/VBZ
it/PRP
all/DT
sound/VB
like/IN
a/DT
great/JJ
adventure/NN
./.
``/``
Without/IN
official/JJ
knowledge/NN
of/IN
sex/NN
or/CC
death/NN
,/,
we/PRP
flirted/VBD
with/IN
both/DT
,/,
''/''
she/PRP
writes/VBZ
./.
She/PRP
analyzed/VBD
families/NNS
by/IN
their/PRP$
sleeping/NN
arrangements/NNS
./.
Her/PRP$
friend/NN
Susan/NNP
,/,
whose/WP$
parents/NNS
kept/VBD
reminding/VBG
her/PRP
she/PRP
was/VBD
unwanted/JJ
,/,
slept/VBD
on/IN
a/DT
narrow/JJ
bed/NN
wedged/VBN
into/IN
her/PRP$
parents/NNS
'/POS
bedroom/NN
,/,
as/IN
though/IN
she/PRP
were/VBD
a/DT
temporary/JJ
visitor/NN
./.
Her/PRP$
friend/NN
Diana/NNP
's/POS
father/NN
was/VBD
a/DT
professional/JJ
thief/NN
;/:
they/PRP
did/VBD
n't/RB
seem/VB
to/TO
have/VB
any/DT
bedrooms/NNS
at/IN
all/DT
./.
Maybe/RB
Lily/NNP
became/VBD
so/RB
obsessed/JJ
with/IN
where/WRB
people/NNS
slept/VBD
and/CC
how/WRB
because/IN
her/PRP$
own/JJ
arrangements/NNS
kept/VBD
shifting/VBG
./.
When/WRB
Rosie/NNP
died/VBD
,/,
her/PRP$
uncles/NNS
moved/VBD
in/RP
--/:
and/CC
let/VB
her/PRP
make/VB
the/DT
sleeping/NN
and/CC
other/JJ
household/NN
arrangements/NNS
./.
They/PRP
painted/VBD
the/DT
apartment/NN
orange/JJ
,/,
pink/JJ
and/CC
white/JJ
,/,
according/VBG
to/TO
her/PRP$
instructions/NNS
./.
With/IN
loving/JJ
detail/NN
she/PRP
recalls/VBZ
her/PRP$
Uncle/NNP
Gabe/NNP
,/,
an/DT
Orthodox/NNP
Jew/NNP
and/CC
song/NN
lyricist/NN
who/WP
rhymed/VBD
river/NN
with/IN
liver/NN
in/IN
a/DT
love/NN
song/NN
Uncle/NNP
Len/NNP
,/,
a/DT
mysterious/JJ
part-time/JJ
investigator/NN
who/WP
looked/VBD
like/IN
Lincoln/NNP
and/CC
carried/VBD
a/DT
change/NN
of/IN
clothing/NN
in/IN
a/DT
Manila/NNP
envelope/NN
,/,
like/IN
an/DT
``/``
undercover/JJ
President/NN
on/IN
a/DT
good-will/JJ
mission/NN
./.
''/''
They/PRP
came/VBD
by/IN
their/PRP$
strangeness/NN
honestly/RB
./.
Lily/NNP
's/POS
grandmother/NN
,/,
no/DT
cookie/NN
baker/NN
,/,
excised/VBD
the/DT
heads/NNS
of/IN
disliked/JJ
relatives/NNS
from/IN
the/DT
family/NN
album/NN
,/,
and/CC
lugged/VBD
around/RP
her/PRP$
perennial/JJ
work-in-progress/NN
,/,
``/``
Philosophy/NN
for/IN
Women/NNS
./.
''/''
The/DT
book/NN
loses/VBZ
some/DT
momentum/NN
toward/IN
the/DT
end/NN
,/,
when/WRB
Lily/NNP
becomes/VBZ
more/RBR
preoccupied/JJ
with/IN
dating/VBG
boys/NNS
and/CC
less/RBR
with/IN
her/PRP
delightfully/RB
weird/JJ
family/NN
./.
For/IN
the/DT
most/JJS
part/NN
,/,
though/RB
,/,
there/EX
's/POS
much/JJ
pleasure/NN
in/IN
her/PRP$
saucy/JJ
,/,
poignant/JJ
probe/NN
into/IN
the/DT
mysteries/NNS
of/IN
the/DT
Babylonian/NNP
Bronx/NNP
./.
The/DT
Bronx/NNP
also/RB
figures/VBZ
in/IN
Bruce/NNP
Jay/NNP
Friedman/NNP
's/POS
latest/JJS
novel/NN
,/,
which/WDT
flashes/VBZ
back/RB
to/TO
the/DT
New/NNP
York/NNP
of/IN
the/DT
'50s/NNS
./.
But/CC
both/DT
the/DT
past/NN
and/CC
present/JJ
worlds/NNS
of/IN
``/``
The/DT
Current/JJ
Climate/NN
''/''
(/(
Atlantic/NNP
Monthly/NNP
Press/NNP
,/,
200/CD
pages/NNS
,/,
$/$
18.95/CD
cramped/JJ
and/CC
static/JJ
./.
For/IN
his/PRP$
sixth/JJ
novel/NN
,/,
Mr./NNP
Friedman/NNP
tried/VBD
to/TO
resuscitate/VB
the/DT
protagonist/NN
of/IN
his/PRP$
1972/CD
work/NN
,/,
``/``
About/IN
Harry/NNP
Towns/NNP
./.
''/''
Harry/NNP
is/VBZ
now/RB
a/DT
57-year-old/JJ
writer/NN
,/,
whose/WP$
continuing/VBG
flirtation/NN
with/IN
drugs/NNS
and/CC
marginal/JJ
types/NNS
in/IN
Hollywood/NNP
and/CC
New/NNP
York/NNP
seems/VBZ
quaintly/RB
out-of-synch/JJ
./.
Harry/NNP
fondly/RB
remembers/VBZ
the/DT
``/``
old/JJ
''/''
days/NNS
of/IN
the/DT
early/JJ
'70s/NNS
,/,
when/WRB
people/NNS
like/IN
his/PRP$
friend/NN
Travis/NNP
would/MD
take/VB
a/DT
psychiatrist/NN
on/IN
a/DT
date/NN
to/TO
analyze/VB
what/WP
Travis/NNP
was/VBD
doing/VBG
wrong/JJ
./.
``/``
An/DT
L.A./NNP
solution/NN
,/,
''/''
explains/VBZ
Mr./NNP
Friedman/NNP
./.
Line/NN
by/IN
line/NN
Mr./NNP
Friedman/NNP
's/POS
weary/JJ
cynicism/NN
can/MD
be/VB
amusing/JJ
,/,
especially/RB
when/WRB
he/PRP
's/VBZ
riffing/VBG
on/IN
the/DT
Hollywood/NNP
social/JJ
scheme/NN
--/:
the/DT
way/NN
people/NNS
size/VBP
each/DT
other/JJ
up/RP
,/,
immediately/RB
canceling/VBG
the/DT
desperate/JJ
ones/NNS
who/WP
merely/RB
almost/RB
made/VBD
it/PRP
./.
Harry/NNP
has/VBZ
avoided/VBN
all/PDT
that/DT
by/IN
living/VBG
in/IN
a/DT
Long/NNP
Island/NNP
suburb/NN
with/IN
his/PRP$
wife/NN
,/,
who/WP
's/VBZ
so/RB
addicted/JJ
to/TO
soap/NN
operas/NNS
and/CC
mystery/NN
novels/NNS
she/PRP
barely/RB
seems/VBZ
to/TO
notice/VB
when/WRB
her/PRP$
husband/NN
disappears/VBZ
for/IN
drug-seeking/JJ
forays/NNS
into/IN
Manhattan/NNP
./.
But/CC
it/PRP
does/VBZ
n't/RB
take/VB
too/RB
many/JJ
lines/NNS
to/TO
figure/VB
Harry/NNP
out/RP
./.
He/PRP
's/VBZ
a/DT
bore/NN
./.
Gulf/NNP
Resources/NNP
&/CC
Chemical/NNP
Corp./NNP
said/VBD
it/PRP
agreed/VBD
to/TO
pay/VB
$/$
1.5/CD
million/CD
as/IN
part/NN
of/IN
an/DT
accord/NN
with/IN
the/DT
Environmental/NNP
Protection/NNP
Agency/NNP
regarding/VBG
an/DT
environmental/JJ
cleanup/NN
of/IN
a/DT
defunct/JJ
smelter/NN
the/DT
company/NN
formerly/RB
operated/VBD
in/IN
Idaho/NNP
./.
In/IN
1984/CD
the/DT
EPA/NNP
notified/VBD
Gulf/NNP
Resources/NNP
,/,
which/WDT
was/VBD
a/DT
part-owner/NN
of/IN
the/DT
smelter/NN
,/,
that/IN
it/PRP
was/VBD
potentially/RB
liable/JJ
for/IN
sharing/VBG
cleanup/NN
costs/NNS
at/IN
the/DT
site/NN
under/IN
the/DT
federal/JJ
Superfund/NNP
program/NN
./.
The/DT
21-square-mile/JJ
area/NN
is/VBZ
contaminated/JJ
with/IN
lead/NN
,/,
zinc/NN
and/CC
other/JJ
metals/NNS
./.
Gulf/NNP
Resources/NNP
earlier/RBR
this/DT
year/NN
proposed/VBD
a/DT
reorganization/NN
plan/NN
that/WDT
would/MD
make/VB
it/PRP
a/DT
unit/NN
of/IN
a/DT
Bermuda/NNP
concern/NN
,/,
potentially/RB
exempting/VBG
it/PRP
from/IN
liability/NN
for/IN
the/DT
smelter/NN
's/POS
cleanup/NN
costs/NNS
./.
The/DT
company/NN
said/VBD
that/IN
as/IN
part/NN
of/IN
its/PRP$
agreement/NN
with/IN
the/DT
EPA/NNP
,/,
it/PRP
``/``
made/VBD
certain/JJ
voluntary/JJ
undertakings/NNS
with/IN
respect/NN
to/TO
intercorporate/JJ
transactions/NNS
entered/VBN
into/IN
after/IN
the/DT
reorganization/NN
./.
''/''
The/DT
company/NN
,/,
which/WDT
issued/VBD
a/DT
statement/NN
on/IN
the/DT
agreement/NN
late/RB
Friday/NNP
,/,
said/VBD
that/IN
$/$
1/CD
million/CD
of/IN
the/DT
payment/NN
was/VBD
previously/RB
provided/VBN
for/IN
in/IN
its/PRP$
financial/JJ
statements/NNS
and/CC
that/DT
$/$
500,000/CD
will/MD
be/VB
recognized/VBN
in/IN
its/PRP$
1989/CD
third-quarter/JJ
statement/NN
./.
The/DT
agreement/NN
and/CC
consent/NN
decree/NN
are/VBP
subject/JJ
to/TO
court/NN
approval/NN
,/,
the/DT
company/NN
said/VBD
./.
Gulf/NNP
Resources/NNP
added/VBD
that/IN
it/PRP
``/``
will/MD
seek/VB
to/TO
recover/VB
equitable/JJ
contribution/NN
from/IN
others/NNS
for/IN
both/CC
the/DT
amount/NN
of/IN
the/DT
settlement/NN
and/CC
any/DT
other/JJ
liabilities/NNS
it/PRP
may/MD
incur/VB
under/IN
the/DT
Superfund/NNP
law/NN
./.
''/''
Under/IN
the/DT
agreement/NN
,/,
Gulf/NNP
must/MD
give/VB
the/DT
U.S./NNP
government/NN
45/CD
days/NNS
'/POS
advance/JJ
written/JJ
notice/NN
before/IN
issuing/VBG
any/DT
dividends/NNS
on/IN
common/JJ
stock/NN
./.
The/DT
company/NN
's/POS
net/JJ
worth/NN
can/MD
not/RB
fall/VB
below/IN
$/$
185/CD
million/CD
after/IN
the/DT
dividends/NNS
are/VBP
issued/VBN
./.
``/``
The/DT
terms/NNS
of/IN
that/DT
agreement/NN
only/RB
become/VBP
effective/JJ
the/DT
date/NN
of/IN
Gulf/NNP
's/POS
reorganization/NN
,/,
which/WDT
we/PRP
anticipate/VBP
will/MD
occur/VB
sometime/RB
in/IN
early/JJ
1990/CD
,/,
''/''
said/VBD
Lawrence/NNP
R./NNP
Mehl/NNP
,/,
Gulf/NNP
's/POS
general/JJ
counsel/NN
./.
In/IN
addition/NN
,/,
Gulf/NNP
must/MD
give/VB
the/DT
government/NN
20/CD
days/NNS
'/POS
advance/JJ
written/JJ
notice/NN
of/IN
any/DT
loans/NNS
exceeding/VBG
$/$
50/CD
million/CD
that/WDT
are/VBP
made/VBN
to/TO
the/DT
Bermuda-based/JJ
holding/NN
company/NN
./.
Gulf/NNP
's/POS
net/JJ
worth/NN
after/IN
those/DT
transaction/NN
must/MD
be/VB
at/IN
least/JJS
$/$
150/CD
million/CD
./.
Separately/RB
,/,
the/DT
company/NN
said/VBD
it/PRP
expects/VBZ
to/TO
hold/VB
a/DT
special/JJ
meeting/NN
for/IN
shareholders/NNS
in/IN
early/JJ
1990/CD
to/TO
vote/VB
on/IN
its/PRP$
proposed/VBN
reorganization/NN
./.
Many/JJ
of/IN
the/DT
nation/NN
's/POS
highest-ranking/JJ
executives/NNS
saluted/VBD
Friday/NNP
's/POS
market/NN
plunge/NN
as/IN
an/DT
overdue/JJ
comeuppance/NN
for/IN
speculators/NNS
and/CC
takeover/NN
players/NNS
./.
Assuming/VBG
that/IN
the/DT
market/NN
does/VBZ
n't/RB
head/VB
into/IN
a/DT
bottomless/JJ
free/JJ
fall/NN
,/,
some/DT
executives/NNS
think/VBP
Friday/NNP
's/POS
action/NN
could/MD
prove/VB
a/DT
harbinger/NN
of/IN
good/JJ
news/NN
--/:
as/IN
a/DT
sign/NN
that/IN
the/DT
leveraged/JJ
buy-out/NN
and/CC
takeover/NN
frenzy/NN
of/IN
recent/JJ
years/NNS
may/MD
be/VB
abating/VBG
./.
``/``
This/DT
is/VBZ
a/DT
reaction/NN
to/TO
artificial/JJ
LBO/NNP
valuations/NNS
,/,
rather/RB
than/IN
to/TO
any/DT
fundamentals/NNS
,/,
''/''
said/VBD
John/NNP
Young/NNP
,/,
chairman/NN
of/IN
Hewlett-Packard/NNP
Co./NNP
,/,
whose/WP$
shares/NNS
dropped/VBD
$/$
3.125/CD
to/TO
$/$
48.125/CD
./.
``/``
If/IN
we/PRP
get/VBP
rid/JJ
of/IN
a/DT
lot/NN
of/IN
that/DT
nonsense/NN
,/,
it/PRP
will/MD
be/VB
a/DT
big/JJ
plus/NN
./.
''/''
A/DT
few/JJ
of/IN
the/DT
executives/NNS
here/RB
for/IN
the/DT
fall/NN
meeting/NN
of/IN
the/DT
Business/NNP
Council/NNP
,/,
a/DT
group/NN
that/WDT
meets/VBZ
to/TO
discuss/VB
national/JJ
issues/NNS
,/,
were/VBD
only/RB
too/RB
happy/JJ
to/TO
personalize/VB
their/PRP$
criticism/NN
./.
``/``
People/NNS
wish/VBP
the/DT
government/NN
would/MD
do/VB
something/NN
about/IN
leveraged/JJ
buy-outs/NNS
,/,
do/VB
something/NN
about/IN
takeovers/NNS
,/,
do/VB
something/NN
about/IN
Donald/NNP
Trump/NNP
,/,
''/''
said/VBD
Rand/NNP
Araskog/NNP
,/,
chairman/NN
of/IN
ITT/NNP
Corp./NNP
,/,
whose/WP$
stock/NN
dropped/VBD
$/$
3.375/CD
./.
``/``
Where/WRB
's/VBZ
the/DT
leadership/NN
?/.
Where/WRB
's/VBZ
the/DT
guy/NN
who/WP
can/MD
say/VB
:/:
`/``
Enough/JJ
is/VBZ
enough/JJ
'/''
''/''
?/.
The/DT
executives/NNS
were/VBD
remarkably/RB
unperturbed/JJ
by/IN
the/DT
plunge/NN
even/RB
though/IN
it/PRP
lopped/VBD
billions/NNS
of/IN
dollars/NNS
off/IN
the/DT
value/NN
of/IN
their/PRP$
companies/NNS
--/:
and/CC
millions/NNS
off/IN
their/PRP$
personal/JJ
fortunes/NNS
./.
``/``
I/PRP
'm/VBP
not/RB
going/VBG
to/TO
worry/VB
about/IN
one/CD
day/NN
's/POS
decline/NN
,/,
''/''
said/VBD
Kenneth/NNP
Olsen/NNP
,/,
Digital/NNP
Equipment/NNP
Corp./NNP
president/NN
,/,
who/WP
was/VBD
leisurely/RB
strolling/VBG
through/IN
the/DT
bright/JJ
orange/NN
and/CC
yellow/JJ
leaves/NNS
of/IN
the/DT
mountains/NNS
here/RB
after/IN
his/PRP$
company/NN
's/POS
shares/NNS
plunged/VBD
$/$
5.75/CD
to/TO
close/VB
at/IN
$/$
86.50/CD
./.
``/``
I/PRP
did/VBD
n't/RB
bother/VB
calling/VBG
anybody/NN
;/:
I/PRP
did/VBD
n't/RB
even/RB
turn/NN
on/IN
TV/NN
./.
''/''
``/``
There/RB
has/VBZ
n't/RB
been/VBN
any/DT
fundamental/JJ
change/NN
in/IN
the/DT
economy/NN
,/,
''/''
added/VBD
John/NNP
Smale/NNP
,/,
whose/WP$
Procter/NNP
&/CC
Gamble/NNP
Co./NNP
took/VBD
an/DT
$/$
8.75/CD
slide/NN
to/TO
close/VB
at/IN
$/$
120.75/CD
./.
``/``
The/DT
fact/NN
that/IN
this/DT
happened/VBD
two/CD
years/NNS
ago/RB
and/CC
there/EX
was/VBD
a/DT
recovery/NN
gives/VBZ
people/NNS
some/DT
comfort/NN
that/IN
this/DT
wo/MD
n't/RB
be/VB
a/DT
problem/NN
./.
''/''
Of/IN
course/NN
,/,
established/JJ
corporate/JJ
managements/NNS
often/RB
tend/VBP
to/TO
applaud/VB
the/DT
setbacks/NNS
of/IN
stock/NN
speculators/NNS
and/CC
takeover/NN
artists/NNS
./.
Indeed/RB
,/,
one/CD
chief/JJ
executive/NN
who/WP
was/VBD
downright/RB
delighted/JJ
by/IN
Friday/NNP
's/POS
events/NNS
was/VBD
Robert/NNP
Crandall/NNP
,/,
chairman/NN
of/IN
AMR/NNP
Corp./NNP
,/,
the/DT
parent/NN
of/IN
American/NNP
Airlines/NNP
and/CC
the/DT
target/NN
of/IN
a/DT
takeover/NN
offer/NN
by/IN
Mr./NNP
Trump/NNP
./.
Asked/VBN
whether/IN
Friday/NNP
's/POS
action/NN
could/MD
help/VB
him/PRP
avoid/VB
being/VBG
Trumped/VBN
by/IN
the/DT
New/NNP
York/NNP
real/JJ
estate/NN
magnate/NN
,/,
Mr./NNP
Crandall/NNP
smiled/VBD
broadly/RB
and/CC
said/VBD
:/:
``/``
No/DT
comment/NN
./.
''/''
On/IN
Friday/NNP
morning/NN
,/,
before/IN
the/DT
market/NN
's/POS
sell-off/NN
,/,
the/DT
business/NN
leaders/NNS
issued/VBD
a/DT
report/NN
predicting/VBG
the/DT
economy/NN
would/MD
grow/VB
at/IN
roughly/RB
an/DT
inflation-adjusted/JJ
2/CD
%/NN
annual/JJ
rate/NN
,/,
through/IN
next/JJ
year/NN
,/,
then/RB
accelerate/VB
anew/RB
in/IN
1991/CD
./.
Of/IN
the/DT
19/CD
economists/NNS
who/WP
worked/VBD
on/IN
the/DT
Business/NNP
Council/NNP
forecast/NN
,/,
only/RB
two/CD
projected/VBD
periods/NNS
of/IN
decline/NN
in/IN
the/DT
nation/NN
's/POS
output/NN
over/IN
the/DT
next/JJ
two/CD
years/NNS
,/,
and/CC
in/IN
``/``
both/DT
instances/NNS
the/DT
declines/NNS
are/VBP
too/RB
modest/JJ
to/TO
warrant/VB
the/DT
phrase/NN
recession/NN
,/,
''/''
said/VBD
Lewis/NNP
Preston/NNP
,/,
chairman/NN
of/IN
J.P./NNP
Morgan/NNP
&/CC
Co./NNP
and/CC
vice/NN
chairman/NN
of/IN
the/DT
Business/NNP
Council/NNP
./.
The/DT
real/JJ
estate/NN
slump/NN
that/WDT
's/VBZ
pushing/VBG
down/RP
the/DT
price/NN
of/IN
New/NNP
York/NNP
office/NN
space/NN
and/CC
housing/NN
is/VBZ
also/RB
affecting/VBG
the/DT
city/NN
's/POS
retail/JJ
real/JJ
estate/NN
market/NN
./.
In/IN
Manhattan/NNP
,/,
once-desirable/JJ
store/NN
sites/NNS
sit/VBP
vacant/JJ
and/CC
newly/RB
constructed/VBN
space/NN
has/VBZ
been/VBN
slow/JJ
to/TO
fill/VB
./.
Retail/JJ
real/JJ
estate/NN
brokers/NNS
say/VBP
tenants/NNS
are/VBP
reluctant/JJ
to/TO
sign/VB
leases/NNS
because/IN
of/IN
uncertainty/NN
about/IN
the/DT
local/JJ
economy/NN
,/,
turmoil/NN
in/IN
their/PRP$
own/JJ
industries/NNS
and/CC
a/DT
belief/NN
that/IN
rents/NNS
have/VBP
not/RB
yet/RB
hit/VBN
bottom/NN
./.
``/``
There/EX
is/VBZ
an/DT
unbelievable/JJ
amount/NN
of/IN
space/NN
available/JJ
,/,
''/''
says/VBZ
Faith/NNP
Consolo/NNP
,/,
senior/JJ
vice/NN
president/NN
at/IN
Garrick-Aug/NNP
Associates/NNP
Store/NNP
Leasing/NNP
Inc/NNP
./.
There/EX
are/VBP
about/RB
2,000/CD
stores/NNS
for/IN
rent/NN
,/,
up/RB
from/IN
a/DT
more/RBR
typical/JJ
range/NN
of/IN
1,200/CD
to/TO
1,500/CD
./.
``/``
This/DT
further/RB
confuses/VBZ
retailers/NNS
,/,
''/''
she/PRP
says/VBZ
./.
``/``
They/PRP
wonder/VBP
should/MD
they/PRP
sign/VB
a/DT
lease/NN
if/IN
prices/NNS
are/VBP
still/RB
coming/VBG
down/RB
?/.
Is/VBZ
this/DT
the/DT
wrong/JJ
time/NN
to/TO
open/VB
a/DT
store/NN
?/.
Who/WP
is/VBZ
going/VBG
to/TO
be/VB
in/IN
the/DT
space/NN
next/IN
door/NN
?/.
''/''
In/IN
addition/NN
,/,
Ms./NNP
Consolo/NNP
says/VBZ
,/,
tenants/NNS
usually/RB
can/MD
negotiate/VB
to/TO
pay/VB
rents/NNS
that/WDT
are/VBP
about/RB
one-quarter/NN
lower/JJR
than/IN
landlords/NNS
'/POS
initial/JJ
asking/NN
price/NN
./.
A/DT
handful/NN
of/IN
hot/JJ
retail/JJ
locations/NNS
,/,
such/JJ
as/IN
the/DT
57th/NNP
Street/NNP
and/CC
Madison/NNP
and/CC
Fifth/NNP
Avenue/NNP
areas/NNS
,/,
have/VBP
been/VBN
able/JJ
to/TO
sustain/VB
what/WP
many/DT
see/VBP
as/IN
astronomical/JJ
rents/NNS
./.
And/CC
,/,
in/IN
some/DT
neighborhoods/NNS
,/,
rents/NNS
have/VBP
merely/RB
hit/VBN
a/DT
plateau/NN
./.
But/CC
on/IN
average/NN
,/,
Manhattan/NNP
retail/JJ
rents/NNS
have/VBP
dropped/VBN
10/CD
%/NN
to/TO
15/CD
%/NN
in/IN
the/DT
past/JJ
six/CD
months/NNS
alone/RB
,/,
experts/NNS
say/VBP
./.
That/DT
follows/VBZ
a/DT
more/RBR
subtle/JJ
decline/NN
in/IN
the/DT
prior/JJ
six/CD
months/NNS
,/,
after/IN
Manhattan/NNP
rents/NNS
had/VBD
run/VBN
up/RP
rapidly/RB
since/IN
1986/CD
./.
The/DT
same/JJ
factors/NNS
limiting/VBG
demand/NN
for/IN
office/NN
space/NN
have/VBP
affected/VBN
retailing/NN
./.
``/``
As/IN
businesses/NNS
contract/VBP
or/CC
depart/VBP
,/,
the/DT
number/NN
of/IN
employees/NNS
who/WP
might/MD
use/VB
retail/JJ
services/NNS
shrinks/VBZ
,/,
''/''
says/VBZ
Edward/NNP
A./NN
Friedman/NNP
,/,
senior/JJ
vice/NN
president/NN
of/IN
Helmsley/NNP
Spear/NNP
Inc/NNP
./.
He/PRP
says/VBZ
financial/JJ
problems/NNS
plaguing/VBG
electronics/NNS
,/,
fur/NN
and/CC
furniture/NN
companies/NNS
--/:
key/JJ
categories/NNS
in/IN
the/DT
local/JJ
retail/JJ
economy/NN
--/:
have/VBP
further/RB
deflated/VBN
the/DT
market/NN
./.
Hardest/JJS
hit/NN
are/VBP
what/WP
he/PRP
calls/VBZ
``/``
secondary/JJ
''/''
sites/NNS
that/WDT
primarily/RB
serve/VBP
neighborhood/NN
residents/NNS
./.
In/IN
these/DT
locations/NNS
,/,
Mr./NNP
Friedman/NNP
says/VBZ
,/,
``/``
Retailers/NNS
are/VBP
increasingly/RB
cautious/JJ
about/RB
expanding/VBG
and/CC
rents/NNS
have/VBP
remained/VBN
steady/RB
or/CC
in/IN
some/DT
cases/NNS
have/VBP
declined/VBN
./.
''/''
Weakness/NN
in/IN
the/DT
restaurant/NN
industry/NN
,/,
which/WDT
is/VBZ
leaving/VBG
retail/JJ
space/NN
vacant/JJ
,/,
exacerbates/VBZ
the/DT
problem/NN
for/IN
landlords/NNS
./.
It/PRP
is/VBZ
also/RB
no/DT
comfort/NN
to/TO
landlords/NNS
and/CC
small/JJ
New/NNP
York/NNP
retailers/NNS
when/WRB
the/DT
future/NN
of/IN
larger/JJR
department/NN
stores/NNS
,/,
which/WDT
anchor/VBP
retail/JJ
neighborhoods/NNS
,/,
are/VBP
in/IN
doubt/NN
./.
Hooker/NNP
Corp./NNP
,/,
parent/NN
of/IN
Bonwit/NNP
Teller/NNP
and/CC
B./NNP
Altman/NNP
's/POS
,/,
is/VBZ
mired/VBN
in/IN
bankruptcy/NN
proceedings/NNS
and/CC
Bloomingdale/NNP
's/POS
is/VBZ
for/IN
sale/NN
by/IN
its/PRP$
owner/NN
,/,
Campeau/NNP
Corp/NNP
./.
The/DT
trend/NN
toward/IN
lower/JJR
rents/NNS
may/MD
seem/VB
surprising/JJ
given/VBN
that/IN
some/DT
communities/NNS
in/IN
New/NNP
York/NNP
are/VBP
bemoaning/VBG
the/DT
loss/NN
of/IN
favorite/JJ
local/JJ
businesses/NNS
to/TO
high/JJ
rents/NNS
./.
But/CC
,/,
despite/IN
the/DT
recent/JJ
softening/NN
,/,
for/IN
many/DT
of/IN
these/DT
retailers/NNS
there/EX
's/VBZ
still/RB
been/VBN
too/RB
big/JJ
a/DT
jump/NN
from/IN
the/DT
rental/JJ
rates/NNS
of/IN
the/DT
late/JJ
1970s/NNS
,/,
when/WRB
their/PRP$
leases/NNS
were/VBD
signed/VBN
./.
Certainly/RB
,/,
the/DT
recent/JJ
drop/NN
in/IN
prices/NNS
does/VBZ
n't/RB
mean/VB
Manhattan/NNP
comes/VBZ
cheap/JJ
./.
New/NNP
York/NNP
retail/JJ
rents/NNS
still/RB
run/VBP
well/RB
above/IN
the/DT
going/JJ
rate/NN
in/IN
other/JJ
U.S./NNP
cities/NNS
./.
Madison/NNP
and/CC
Fifth/NNP
Avenues/NNP
and/CC
East/NNP
57th/NNP
Street/NNP
can/MD
command/VB
rents/NNS
of/IN
up/RB
to/TO
$/$
500/CD
a/DT
square/JJ
foot/NN
,/,
and/CC
$/$
250/CD
is/VBZ
not/RB
uncommon/JJ
./.
The/DT
thriving/VBG
34th/NNP
Street/NNP
area/NN
offers/VBZ
rents/NNS
of/IN
about/RB
$/$
100/CD
a/DT
square/JJ
foot/NN
,/,
as/IN
do/VB
up-and-coming/JJ
locations/NNS
along/IN
lower/JJR
Fifth/NNP
Avenue/NNP
./.
By/IN
contrast/NN
,/,
rentals/NNS
in/IN
the/DT
best/JJS
retail/JJ
locations/NNS
in/IN
Boston/NNP
,/,
San/NNP
Francisco/NNP
and/CC
Chicago/NNP
rarely/RB
top/VBP
$/$
100/CD
a/DT
square/JJ
foot/NN
./.
And/CC
rents/NNS
on/IN
Beverly/NNP
Hills/NNP
'/POS
Rodeo/NNP
Drive/NNP
generally/RB
do/VBP
n't/RB
exceed/VB
about/RB
$/$
125/CD
a/DT
square/JJ
foot/NN
./.
The/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
said/VBD
two/CD
securities/NNS
will/MD
begin/VB
trading/VBG
this/DT
week/NN
./.
Precision/NNP
Castparts/NNP
Corp./NNP
,/,
Portland/NNP
,/,
Ore./NNP
,/,
will/MD
begin/VB
trading/VBG
with/IN
the/DT
symbol/NN
PCP/NNP
./.
It/PRP
makes/VBZ
investment/NN
castings/NNS
and/CC
has/VBZ
traded/VBN
over-the-counter/RB
./.
Royal/NNP
Bank/NNP
of/IN
Scotland/NNP
Group/NNP
PLC/NNP
,/,
an/DT
Edinburgh/NNP
,/,
Scotland/NNP
,/,
financial/JJ
services/NNS
company/NN
,/,
will/MD
list/VB
American/JJ
depositary/JJ
shares/NNS
,/,
representing/VBG
preferred/JJ
shares/NNS
,/,
with/IN
the/DT
symbol/NN
RBSPr/NNP
./.
It/PRP
will/MD
continue/VB
to/TO
trade/VB
on/IN
the/DT
International/NNP
Stock/NNP
Exchange/NNP
,/,
London/NNP
./.
The/DT
American/NNP
Stock/NNP
Exchange/NNP
listed/VBD
shares/NNS
of/IN
two/CD
companies/NNS
./.
AIM/NNP
Telephones/NNP
Inc./NNP
,/,
a/DT
Parsippany/NNP
,/,
N.J./NNP
,/,
telecommunications/NNS
equipment/NN
supply/NN
company/NN
,/,
started/VBD
trading/VBG
with/IN
the/DT
symbol/NN
AIM/NNP
./.
It/PRP
had/VBD
traded/VBN
over-the-counter/RB
./.
Columbia/NNP
Laboratories/NNP
Inc./NNP
,/,
Miami/NNP
,/,
began/VBD
trading/VBG
with/IN
the/DT
symbol/NN
COB/NNP
./.
The/DT
pharmaceuticals/NNS
maker/NN
had/VBD
traded/VBN
over-the-counter/RB
./.
The/DT
National/NNP
Market/NNP
System/NNP
of/IN
the/DT
Nasdaq/NNP
over-the-counter/JJ
market/NN
listed/VBD
shares/NNS
of/IN
one/CD
company/NN
./.
Employee/NNP
Benefit/NNP
Plans/NNP
Inc./NNP
,/,
a/DT
Minneapolis/NNS
health-care/NN
services/NNS
company/NN
,/,
was/VBD
listed/VBN
with/IN
the/DT
symbol/NN
EBPI/NNP
./.
When/WRB
Justice/NNP
William/NNP
Brennan/NNP
marks/VBZ
the/DT
start/NN
of/IN
his/PRP$
34th/JJ
year/NN
on/IN
the/DT
Supreme/NNP
Court/NNP
today/NN
,/,
the/DT
occasion/NN
will/MD
differ/VB
sharply/RB
from/IN
previous/JJ
anniversaries/NNS
of/IN
his/PRP$
tenure/NN
./.
For/IN
the/DT
first/JJ
time/NN
,/,
the/DT
83-year-old/JJ
justice/NN
finds/VBZ
his/PRP$
influence/NN
almost/RB
exclusively/RB
in/IN
dissent/NN
,/,
rather/RB
than/IN
as/IN
a/DT
force/NN
in/IN
the/DT
high/JJ
court/NN
's/POS
majority/NN
./.
This/DT
role/NN
reversal/NN
holds/VBZ
true/JJ
,/,
as/IN
well/RB
,/,
for/IN
his/PRP$
three/CD
liberal/JJ
and/CC
moderate/JJ
allies/NNS
,/,
Justices/NNP
Thurgood/NNP
Marshall/NNP
,/,
Harry/NNP
Blackmun/NNP
and/CC
John/NNP
Stevens/NNP
./.
But/CC
are/VBP
these/DT
four/CD
players/NNS
,/,
three/CD
of/IN
them/PRP
in/IN
their/PRP$
80s/NNS
,/,
ready/JJ
to/TO
assume/VB
a/DT
different/JJ
role/NN
after/IN
88/CD
years/NNS
,/,
collectively/RB
,/,
of/IN
service/NN
on/IN
the/DT
high/JJ
court/NN
?/.
Every/DT
indication/NN
is/VBZ
that/IN
the/DT
four/CD
are/VBP
prepared/JJ
to/TO
accept/VB
this/DT
new/JJ
role/NN
,/,
and/CC
the/DT
frustrations/NNS
that/WDT
go/VBP
with/IN
it/PRP
,/,
but/CC
in/IN
different/JJ
ways/NNS
./.
Justices/NNPS
Brennan/NNP
and/CC
Stevens/NNP
appear/VBP
philosophical/JJ
about/IN
it/PRP
;/:
Justices/NNPS
Marshall/NNP
and/CC
Blackmun/NNP
appear/VBP
fighting/NN
mad/JJ
./.
The/DT
four/CD
justices/NNS
are/VBP
no/DT
newcomers/NNS
to/TO
dissent/NN
,/,
often/RB
joining/VBG
forces/NNS
in/IN
the/DT
past/JJ
decade/NN
to/TO
criticize/VB
the/DT
court/NN
's/POS
conservative/JJ
drift/NN
./.
But/CC
always/RB
,/,
in/IN
years/NNS
past/JJ
,/,
they/PRP
have/VBP
bucked/VBN
the/DT
trend/NN
and/CC
have/VBP
been/VBP
able/JJ
to/TO
pick/VB
up/RP
a/DT
fifth/JJ
vote/NN
to/TO
eke/VB
out/RP
a/DT
number/NN
of/IN
major/JJ
victories/NNS
in/IN
civil/JJ
rights/NNS
and/CC
liberties/NNS
cases/NNS
./.
Now/RB
,/,
however/RB
,/,
as/IN
the/DT
court/NN
's/POS
new/JJ
five-member/JJ
conservative/JJ
majority/NN
continues/VBZ
to/TO
solidify/VB
,/,
victories/NNS
for/IN
the/DT
liberals/NNS
are/VBP
rare/JJ
./.
The/DT
change/NN
is/VBZ
most/RBS
dramatic/JJ
for/IN
Justice/NNP
Brennan/NNP
,/,
the/DT
last/JJ
survivor/NN
of/IN
the/DT
mid-1960s/NNS
liberal/JJ
majority/NN
under/IN
Chief/NNP
Justice/NNP
Earl/NNP
Warren/NNP
./.
In/IN
the/DT
seven/CD
Supreme/NNP
Court/NNP
terms/NNS
from/IN
the/DT
fall/NN
of/IN
1962/CD
through/IN
the/DT
spring/NN
of/IN
1967/CD
,/,
the/DT
height/NN
of/IN
the/DT
Warren/NNP
Court/NNP
's/POS
power/NN
,/,
Justice/NNP
Brennan/NNP
cast/VBD
only/RB
25/CD
dissenting/JJ
votes/NNS
in/IN
555/CD
cases/NNS
decided/VBN
by/IN
the/DT
court/NN
./.
Last/JJ
term/NN
alone/RB
he/PRP
cast/VBD
52/CD
dissenting/JJ
votes/NNS
in/IN
133/CD
decisions/NNS
,/,
with/IN
the/DT
contentious/JJ
flag-burning/NN
ruling/NN
as/IN
his/PRP$
only/JJ
big/JJ
victory/NN
./.
But/CC
Justice/NNP
Brennan/NNP
foresaw/VBD
his/PRP$
new/JJ
role/NN
,/,
strongly/RB
defending/VBG
the/DT
importance/NN
of/IN
dissents/NNS
in/IN
a/DT
1985/CD
speech/NN
./.
``/``
Each/DT
time/NN
the/DT
court/NN
revisits/VBZ
an/DT
issue/NN
,/,
the/DT
justices/NNS
will/MD
be/VB
forced/VBN
by/IN
a/DT
dissent/NN
to/TO
reconsider/VB
the/DT
fundamental/JJ
questions/NNS
and/CC
to/TO
rethink/VB
the/DT
result/NN
,/,
''/''
he/PRP
said/VBD
./.
Moreover/RB
,/,
in/IN
recent/JJ
months/NNS
he/PRP
has/VBZ
said/VBD
that/IN
when/WRB
he/PRP
was/VBD
on/IN
the/DT
winning/VBG
side/NN
in/IN
the/DT
1960s/NNS
,/,
he/PRP
knew/VBD
that/IN
the/DT
tables/NNS
might/MD
turn/VB
in/IN
the/DT
future/NN
./.
He/PRP
has/VBZ
said/VBD
that/IN
he/PRP
now/RB
knows/VBZ
how/WRB
Justice/NNP
John/NNP
Harlan/NNP
felt/VBD
,/,
a/DT
reference/NN
to/TO
the/DT
late/JJ
conservative/JJ
justice/NN
who/WP
was/VBD
the/DT
most/RBS
frequent/JJ
dissenter/NN
from/IN
the/DT
Warren/NNP
Court/NNP
's/POS
opinions/NNS
./.
Associates/NNS
of/IN
81-year-old/JJ
Justice/NNP
Marshall/NNP
say/VB
he/PRP
was/VBD
``/``
depressed/JJ
''/''
about/IN
the/DT
court/NN
's/POS
direction/NN
last/JJ
spring/NN
,/,
but/CC
is/VBZ
feisty/JJ
about/IN
his/PRP$
role/NN
and/CC
determined/JJ
to/TO
speak/VB
out/RP
against/IN
the/DT
court/NN
's/POS
cutbacks/NNS
in/IN
civil/JJ
rights/NNS
./.
``/``
We/PRP
could/MD
sweep/VB
it/PRP
under/IN
the/DT
rug/NN
and/CC
hide/VB
it/PRP
,/,
but/CC
I/PRP
'm/VBP
not/RB
going/VBG
to/TO
do/VB
it/PRP
,/,
''/''
he/PRP
said/VBD
in/IN
a/DT
speech/NN
last/JJ
month/NN
./.
He/PRP
,/,
like/IN
Justice/NNP
Brennan/NNP
,/,
considers/VBZ
dissents/NNS
highly/RB
important/JJ
for/IN
the/DT
future/NN
,/,
a/DT
point/NN
that/DT
has/VBZ
n't/RB
escaped/VBN
legal/JJ
scholars/NNS
./.
Harvard/NNP
Law/NNP
School/NNP
Professor/NNP
Laurence/NNP
Tribe/NNP
says/VBZ
there/EX
is/VBZ
a/DT
``/``
generation-skipping/JJ
''/''
flavor/NN
to/TO
current/JJ
dissents/NNS
./.
The/DT
dissenters/NNS
in/IN
the/DT
Warren/NNP
Court/NNP
,/,
he/PRP
says/VBZ
,/,
appeared/VBD
to/TO
be/VB
writing/VBG
for/IN
the/DT
short-term/NN
,/,
suggesting/VBG
that/IN
the/DT
court/NN
's/POS
direction/NN
might/MD
change/VB
soon/RB
./.
``/``
Brennan/NNP
and/CC
Marshall/NNP
are/VBP
speaking/VBG
in/IN
their/PRP$
dissents/NNS
to/TO
a/DT
more/RBR
distant/JJ
future/NN
,/,
''/''
he/PRP
says/VBZ
./.
Justice/NNP
Blackmun/NNP
,/,
who/WP
will/MD
turn/VB
81/CD
next/JJ
month/NN
,/,
also/RB
seems/VBZ
feisty/JJ
about/IN
his/PRP$
new/JJ
role/NN
./.
Associates/NNS
say/VBP
he/PRP
takes/VBZ
some/DT
defeats/NNS
more/RBR
personally/RB
than/IN
his/PRP$
colleagues/NNS
,/,
especially/RB
attempts/NNS
to/TO
curtail/VB
the/DT
right/NN
to/TO
abortion/NN
first/RB
recognized/VBN
in/IN
his/PRP$
1973/CD
opinion/NN
,/,
Roe/NNP
vs./IN
Wade/NNP
./.
Friends/NNS
and/CC
associates/NNS
who/WP
saw/VBD
Justice/NNP
Blackmun/NNP
during/IN
the/DT
summer/NN
said/VBD
he/PRP
was/VBD
no/DT
more/RBR
discouraged/JJ
about/IN
the/DT
court/NN
than/IN
in/IN
recent/JJ
years/NNS
./.
And/CC
his/PRP$
outlook/NN
improved/VBD
after/IN
successful/JJ
cataract/NN
surgery/NN
in/IN
August/NNP
./.
But/CC
his/PRP$
level/NN
of/IN
frustration/NN
showed/VBD
in/IN
a/DT
recent/JJ
,/,
impassioned/JJ
speech/NN
to/TO
a/DT
group/NN
of/IN
hundreds/NNS
of/IN
lawyers/NNS
in/IN
Chicago/NNP
./.
He/PRP
concluded/VBD
his/PRP$
remarks/NNS
by/IN
quoting/VBG
,/,
emotionally/RB
and/CC
at/IN
some/DT
length/NN
,/,
according/VBG
to/TO
those/DT
present/JJ
,/,
the/DT
late/JJ
Martin/NNP
Luther/NNP
King/NNP
's/POS
famous/JJ
``/``
I/PRP
Have/VBP
a/DT
Dream/NN
''/''
speech/NN
from/IN
the/DT
1963/CD
March/NNP
on/IN
Washington/NNP
./.
Justice/NNP
Stevens/NNP
,/,
69/CD
,/,
is/VBZ
probably/RB
the/DT
most/RBS
philosophical/JJ
of/IN
the/DT
dissenters/NNS
about/IN
his/PRP$
role/NN
,/,
in/IN
part/NN
because/IN
he/PRP
may/MD
be/VB
the/DT
least/JJS
liberal/NN
of/IN
the/DT
four/CD
,/,
but/CC
also/RB
because/IN
he/PRP
enjoys/VBZ
the/DT
intellectual/JJ
challenge/NN
of/IN
arguing/VBG
with/IN
the/DT
majority/NN
more/RBR
than/IN
the/DT
others/NNS
./.
If/IN
the/DT
role/NN
these/DT
four/CD
dissenters/NNS
are/VBP
assuming/VBG
is/VBZ
a/DT
familiar/JJ
one/CD
in/IN
modern/JJ
Supreme/NNP
Court/NNP
history/NN
,/,
it/PRP
also/RB
differs/VBZ
in/IN
an/DT
important/JJ
way/NN
from/IN
recent/JJ
history/NN
,/,
court/NN
watchers/NNS
say/VBP
./.
``/``
The/DT
dissenters/NNS
of/IN
the/DT
Warren/NNP
Court/NNP
were/VBD
often/RB
defending/VBG
a/DT
legal/JJ
legacy/NN
that/IN
they/PRP
inherited/VBD
,/,
''/''
says/VBZ
Prof./NNP
A.E./NNP
Dick/NNP
Howard/NNP
of/IN
the/DT
University/NNP
of/IN
Virginia/NNP
Law/NNP
School/NNP
,/,
``/``
but/CC
the/DT
dissenters/NNS
today/NN
are/VBP
defending/VBG
a/DT
legacy/NN
that/IN
they/PRP
created/VBD
./.
''/''
The/DT
government/NN
sold/VBD
the/DT
deposits/NNS
of/IN
four/CD
savings-and-loan/JJ
institutions/NNS
,/,
in/IN
its/PRP$
first/JJ
wave/NN
of/IN
sales/NNS
of/IN
big/JJ
,/,
sick/JJ
thrifts/NNS
,/,
but/CC
low/JJ
bids/NNS
prevented/VBD
the/DT
sale/NN
of/IN
a/DT
fifth/JJ
./.
The/DT
four/CD
S&Ls/NNS
were/VBD
sold/VBN
to/TO
large/JJ
banks/NNS
,/,
as/IN
was/VBD
the/DT
case/NN
with/IN
most/JJS
of/IN
the/DT
28/CD
previous/JJ
transactions/NNS
initiated/VBN
by/IN
the/DT
Resolution/NNP
Trust/NNP
Corp./NNP
since/IN
it/PRP
was/VBD
created/VBN
in/IN
the/DT
S&L/NN
bailout/NN
legislation/NN
two/CD
months/NNS
ago/RB
./.
Two/CD
of/IN
the/DT
four/CD
big/JJ
thrifts/NNS
were/VBD
sold/VBN
to/TO
NCNB/NNP
Corp./NNP
,/,
Charlotte/NNP
,/,
N.C./NNP
,/,
which/WDT
has/VBZ
aggressively/RB
expanded/VBN
its/PRP$
markets/NNS
,/,
particularly/RB
in/IN
Texas/NNP
and/CC
Florida/NNP
./.
A/DT
Canadian/JJ
bank/NN
bought/VBD
another/DT
thrift/NN
,/,
in/IN
the/DT
first/JJ
RTC/NNP
transaction/NN
with/IN
a/DT
foreign/JJ
bank/NN
./.
Under/IN
these/DT
deals/NNS
,/,
the/DT
RTC/NNP
sells/VBZ
just/RB
the/DT
deposits/NNS
and/CC
the/DT
healthy/JJ
assets/NNS
./.
These/DT
``/``
clean-bank/JJ
''/''
transactions/NNS
leave/VBP
the/DT
bulk/NN
of/IN
bad/JJ
assets/NNS
,/,
mostly/RB
real/JJ
estate/NN
,/,
with/IN
the/DT
government/NN
,/,
to/TO
be/VB
sold/VBN
later/RB
./.
In/IN
these/DT
four/CD
,/,
for/IN
instance/NN
,/,
the/DT
RTC/NNP
is/VBZ
stuck/VBN
with/IN
$/$
4.51/CD
billion/CD
in/IN
bad/JJ
assets/NNS
./.
Acquirers/NNS
paid/VBD
premiums/NNS
ranging/VBG
from/IN
1.5/CD
%/NN
to/TO
3.7/CD
%/NN
for/IN
the/DT
deposits/NNS
and/CC
branch/NN
systems/NNS
,/,
roughly/RB
in/IN
line/NN
with/IN
what/WP
analysts/NNS
were/VBD
expecting/VBG
./.
The/DT
buyers/NNS
will/MD
also/RB
be/VB
locked/VBN
into/IN
deposit/NN
rates/NNS
for/IN
just/RB
two/CD
weeks/NNS
,/,
as/IN
has/VBZ
been/VBN
the/DT
case/NN
with/IN
previous/JJ
deals/NNS
./.
After/IN
that/DT
,/,
the/DT
buyers/NNS
may/MD
repudiate/VB
the/DT
rates/NNS
paid/VBN
by/IN
the/DT
former/JJ
thrifts/NNS
./.
But/CC
it/PRP
's/VBZ
uncertain/JJ
whether/IN
these/DT
institutions/NNS
will/MD
take/VB
those/DT
steps/NNS
./.
NCNB/NNP
,/,
for/IN
example/NN
,/,
has/VBZ
been/VBN
one/CD
of/IN
the/DT
highest/JJS
rate/NN
payers/NNS
in/IN
the/DT
Texas/NNP
market/NN
,/,
and/CC
in/IN
Florida/NNP
,/,
rates/NNS
are/VBP
especially/RB
sensitive/JJ
in/IN
retirement/NN
communities/NNS
./.
The/DT
RTC/NNP
had/VBD
previously/RB
targeted/VBN
five/CD
thrifts/NNS
for/IN
quick/JJ
sales/NNS
in/IN
order/NN
to/TO
spend/VB
cash/NN
by/IN
certain/JJ
budgetary/JJ
deadlines/NNS
,/,
but/CC
the/DT
delays/NNS
illustrate/VBP
the/DT
tough/JJ
chore/NN
facing/VBG
the/DT
agency/NN
./.
``/``
These/DT
thrifts/NNS
are/VBP
beached/JJ
whales/NNS
,/,
''/''
said/VBD
Bert/NNP
Ely/NNP
,/,
an/DT
industry/NN
consultant/NN
based/VBN
in/IN
Alexandria/NNP
,/,
Va/NNP
./.
For/IN
example/NN
,/,
the/DT
delay/NN
in/IN
selling/VBG
People/NNP
's/POS
Heritage/NNP
Savings/NNP
,/,
Salina/NNP
,/,
Kan./NNP
,/,
with/IN
$/$
1.7/CD
billion/CD
in/IN
assets/NNS
,/,
has/VBZ
forced/VBN
the/DT
RTC/NNP
to/TO
consider/VB
selling/VBG
off/RP
the/DT
thrift/NN
branch-by-branch/RB
,/,
instead/RB
of/IN
as/IN
a/DT
whole/JJ
institution/NN
./.
NCNB/NNP
continued/VBD
its/PRP$
foray/NN
into/IN
the/DT
Florida/NNP
and/CC
Texas/NNP
markets/NNS
./.
NCNB/NNP
will/MD
acquire/VB
University/NNP
Federal/NNP
Savings/NNP
Association/NNP
,/,
Houston/NNP
,/,
which/WDT
had/VBD
assets/NNS
of/IN
$/$
2.8/CD
billion/CD
./.
NCNB/NNP
Texas/NNP
National/NNP
Bank/NNP
will/MD
pay/VB
the/DT
RTC/NNP
a/DT
premium/NN
of/IN
$/$
129/CD
million/CD
for/IN
$/$
3.5/CD
billion/CD
in/IN
deposits/NNS
./.
As/IN
a/DT
measure/NN
of/IN
the/DT
depths/NNS
to/TO
which/WDT
the/DT
Texas/NNP
real/JJ
estate/NN
market/NN
has/VBZ
sunk/VBN
,/,
the/DT
RTC/NNP
will/MD
pay/VB
$/$
3.8/CD
billion/CD
to/TO
NCNB/NNP
to/TO
take/VB
$/$
750/CD
million/CD
of/IN
bad/JJ
assets/NNS
./.
NCNB/NNP
also/RB
acquired/VBD
Freedom/NNP
Savings/NNP
&/CC
Loan/NNP
Association/NNP
,/,
Tampa/NNP
,/,
Fla./NNP
,/,
which/WDT
had/VBD
total/JJ
assets/NNS
of/IN
$/$
900/CD
million/CD
./.
NCNB/NNP
will/MD
pay/VB
the/DT
RTC/NNP
a/DT
premium/NN
of/IN
$/$
40.4/CD
million/CD
for/IN
$/$
1.1/CD
billion/CD
in/IN
deposits/NNS
./.
NCNB/NNP
will/MD
also/RB
acquire/VB
$/$
266/CD
million/CD
of/IN
Freedom/NNP
's/POS
assets/NNS
from/IN
the/DT
RTC/NNP
,/,
which/WDT
will/MD
require/VB
$/$
875/CD
million/CD
in/IN
assistance/NN
./.
Meridian/NNP
Bancorp/NNP
Inc./NNP
,/,
Reading/NN
,/,
Pa./NNP
,/,
will/MD
acquire/VB
Hill/NNP
Financial/NNP
Savings/NNP
Association/NNP
,/,
Red/NNP
Hill/NNP
,/,
Pa./NNP
,/,
which/WDT
had/VBD
$/$
2.3/CD
billion/CD
in/IN
assets/NNS
./.
Meridian/NNP
will/MD
pay/VB
a/DT
premium/NN
of/IN
$/$
30.5/CD
million/CD
to/TO
assume/VB
$/$
2/CD
billion/CD
in/IN
deposits/NNS
./.
It/PRP
will/MD
also/RB
purchase/VB
$/$
845/CD
million/CD
of/IN
the/DT
thrift/NN
's/POS
assets/NNS
,/,
with/IN
$/$
1.9/CD
billion/CD
in/IN
RTC/NNP
assistance/NN
./.
In/IN
the/DT
first/JJ
RTC/NNP
transaction/NN
with/IN
a/DT
foreign/JJ
buyer/NN
,/,
Royal/NNP
Trustco/NNP
Ltd./NNP
,/,
Toronto/NNP
,/,
will/MD
acquire/VB
Pacific/NNP
Savings/NNP
Bank/NNP
,/,
Costa/NNP
Mesa/NNP
,/,
Calif./NNP
,/,
which/WDT
had/VBD
$/$
949/CD
million/CD
in/IN
assets/NNS
./.
Royal/NNP
Trustco/NNP
will/MD
pay/VB
the/DT
RTC/NNP
$/$
25/CD
million/CD
to/TO
assume/VB
$/$
989/CD
million/CD
in/IN
deposits/NNS
./.
It/PRP
will/MD
also/RB
purchase/VB
$/$
473/CD
million/CD
in/IN
assets/NNS
,/,
and/CC
receive/VB
$/$
550/CD
million/CD
in/IN
assistance/NN
from/IN
the/DT
RTC/NNP
./.
The/DT
following/JJ
issues/NNS
were/VBD
recently/RB
filed/VBN
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
:/:
American/NNP
Cyanamid/NNP
Co./NNP
,/,
offering/NN
of/IN
1,250,000/CD
common/JJ
shares/NNS
,/,
via/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
./.
Limited/NNP
Inc./NNP
,/,
offering/NN
of/IN
up/IN
to/TO
$/$
300/CD
million/CD
of/IN
debt/NN
securities/NNS
and/CC
warrants/NNS
./.
Nuveen/NNP
California/NNP
Performance/NNP
Plus/NNP
Municipal/NNP
Fund/NNP
Inc./NNP
,/,
initial/JJ
offering/NN
of/IN
five/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
Alex/NNP
./.
Brown/NNP
&/CC
Sons/NNP
Inc./NNP
,/,
John/NNP
Nuveen/NNP
&/CC
Co./NNP
,/,
Prudential-Bache/NNP
Capital/NNP
Funding/NNP
,/,
and/CC
Bateman/NNP
Eichler/NNP
,/,
Hill/NNP
Richards/NNP
./.
PacifiCare/NNP
Health/NNP
Systems/NNP
Inc./NNP
,/,
proposed/VBN
offering/NN
of/IN
1.5/CD
million/CD
common/JJ
shares/NNS
,/,
of/IN
which/WDT
700,000/CD
shares/NNS
will/MD
be/VB
offered/VBN
by/IN
PacifiCare/NNP
and/CC
800,000/CD
shares/NNS
by/IN
UniHealth/NNP
America/NNP
Inc/NNP
./.
PacifiCare/NNP
's/POS
71/CD
%/NN
Dillon/NNP
,/,
Read/NNP
&/CC
Co./NNP
Inc./NNP
,/,
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
and/CC
Dean/NNP
Witter/NNP
Reynolds/NNP
Inc/NNP
./.
Pricor/NNP
Inc./NNP
,/,
offering/NN
of/IN
one/CD
million/CD
new/JJ
shares/NNS
of/IN
common/JJ
stock/NN
and/CC
300,000/CD
shares/NNS
by/IN
holders/NNS
,/,
via/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
and/CC
J.C./NNP
Bradford/NNP
&/CC
Co/NNP
./.
Trans/NNP
World/NNP
Airlines/NNP
Inc./NNP
,/,
offering/NN
of/IN
$/$
150/CD
million/CD
senior/JJ
notes/NNS
,/,
via/IN
Drexel/NNP
Burnham/NNP
./.
Time/NNP
magazine/NN
,/,
in/IN
a/DT
move/NN
to/TO
reduce/VB
the/DT
costs/NNS
of/IN
wooing/VBG
new/JJ
subscribers/NNS
,/,
is/VBZ
lowering/VBG
its/PRP$
circulation/NN
guarantee/NN
to/TO
advertisers/NNS
for/IN
the/DT
second/JJ
consecutive/JJ
year/NN
,/,
increasing/VBG
its/PRP$
subscription/NN
rates/NNS
and/CC
cutting/VBG
back/RP
on/IN
merchandise/NN
giveaways/NNS
./.
In/IN
an/DT
announcement/NN
to/TO
its/PRP$
staff/NN
last/JJ
week/NN
,/,
executives/NNS
at/IN
Time/NNP
Warner/NNP
Inc./NNP
's/POS
weekly/JJ
magazine/NN
said/VBD
Time/NNP
will/MD
``/``
dramatically/RB
de-emphasize/VB
''/''
its/PRP$
use/NN
of/IN
electronic/JJ
giveaways/NNS
such/JJ
as/IN
telephones/NNS
in/IN
television/NN
subscription/NN
drives/NNS
;/:
cut/VB
the/DT
circulation/NN
it/PRP
guarantees/VBZ
advertisers/NNS
by/IN
300,000/CD
,/,
to/TO
four/CD
million/CD
;/:
and/CC
increase/VB
the/DT
cost/NN
of/IN
its/PRP$
annual/JJ
subscription/NN
rate/NN
by/IN
about/RB
$/$
4/CD
to/TO
$/$
55/CD
./.
In/IN
a/DT
related/JJ
development/NN
,/,
the/DT
news-weekly/NN
,/,
for/IN
the/DT
fourth/JJ
year/NN
in/IN
a/DT
row/NN
,/,
said/VBD
it/PRP
wo/MD
n't/RB
increase/VB
its/PRP$
advertising/NN
rates/NNS
in/IN
1990/CD
;/:
a/DT
full/JJ
,/,
four-color/JJ
page/NN
in/IN
the/DT
magazine/NN
costs/VBZ
about/RB
$/$
120,000/CD
./.
However/RB
,/,
because/IN
the/DT
guaranteed/VBN
circulation/NN
base/NN
is/VBZ
being/VBG
lowered/VBN
,/,
ad/NN
rates/NNS
will/MD
be/VB
effectively/RB
7.5/CD
%/NN
higher/JJR
per/IN
subscriber/NN
,/,
according/VBG
to/TO
Richard/NNP
Heinemann/NNP
,/,
Time/NNP
associate/JJ
publisher/NN
./.
Time/NNP
is/VBZ
following/VBG
the/DT
course/NN
of/IN
some/DT
other/JJ
mass-circulation/JJ
magazines/NNS
that/IN
in/IN
recent/JJ
years/NNS
have/VBP
challenged/VBN
the/DT
publishing/NN
myth/NN
that/IN
maintaining/VBG
artificially/RB
high/JJ
,/,
and/CC
expensive/JJ
,/,
circulations/NNS
is/VBZ
the/DT
way/NN
to/TO
draw/VB
advertisers/NNS
./.
In/IN
recent/JJ
years/NNS
,/,
Reader/NNP
's/POS
Digest/NNP
,/,
New/NNP
York/NNP
Times/NNP
Co./NNP
's/POS
McCall/NNP
's/POS
,/,
and/CC
most/RBS
recently/RB
News/NNP
Corp./NNP
's/POS
TV/NNP
Guide/NNP
,/,
have/VBP
cut/VBN
their/PRP$
massive/JJ
circulation/NN
rate/NN
bases/NNS
to/TO
eliminate/VB
marginal/JJ
circulation/NN
and/CC
hold/VB
down/RP
rates/NNS
for/IN
advertisers/NNS
./.
Deep/JJ
discounts/NNS
in/IN
subscriptions/NNS
and/CC
offers/NNS
of/IN
free/JJ
clock/NN
radios/NNS
and/CC
watches/NNS
have/VBP
become/VBN
accepted/JJ
forms/NNS
of/IN
attracting/VBG
new/JJ
subscribers/NNS
in/IN
the/DT
hyper-competitive/JJ
world/NN
of/IN
magazine/NN
news-weeklies/NNS
./.
But/CC
Time/NNP
,/,
as/IN
part/NN
of/IN
the/DT
more/RBR
cost-conscious/JJ
Time/NNP
Warner/NNP
,/,
wants/VBZ
to/TO
wean/VB
itself/PRP
away/RB
from/IN
expensive/JJ
gimmicks/NNS
./.
Besides/RB
,/,
Time/NNP
executives/NNS
think/VBP
selling/VBG
a/DT
news/NN
magazine/NN
with/IN
a/DT
clock/NN
radio/NN
is/VBZ
tacky/JJ
./.
``/``
Giveaways/NNS
just/RB
give/VBP
people/NNS
the/DT
wrong/JJ
image/NN
,/,
''/''
said/VBD
Mr./NNP
Heinemann/NNP
./.
``/``
That/DT
perception/NN
takes/VBZ
the/DT
focus/NN
off/IN
the/DT
magazine/NN
./.
''/''
Time/NNP
magazine/NN
executives/NNS
predictably/RB
paint/VBP
the/DT
circulation/NN
cut/NN
as/IN
a/DT
show/NN
of/IN
strength/NN
and/CC
actually/RB
a/DT
benefit/NN
to/TO
advertisers/NNS
./.
``/``
What/WP
we/PRP
are/VBP
doing/VBG
is/VBZ
screening/VBG
out/RP
the/DT
readers/NNS
who/WP
are/VBP
only/RB
casually/RB
related/VBN
to/TO
the/DT
magazine/NN
and/CC
do/VBP
n't/RB
really/RB
read/VB
it/PRP
,/,
''/''
said/VBD
Mr./NNP
Heinemann/NNP
./.
``/``
We/PRP
are/VBP
trying/VBG
to/TO
create/VB
quality/NN
and/CC
involvement/NN
./.
''/''
However/RB
,/,
Time/NNP
executives/NNS
used/VBD
the/DT
same/JJ
explanation/NN
when/WRB
in/IN
October/NNP
1988/CD
the/DT
magazine/NN
cut/VBD
its/PRP$
guaranteed/VBN
circulation/NN
from/IN
4.6/CD
million/CD
to/TO
4.3/CD
million/CD
./.
And/CC
Time/NNP
's/POS
paid/JJ
circulation/NN
,/,
according/VBG
to/TO
Audit/NNP
Bureau/NNP
of/IN
Circulations/NNP
,/,
dropped/VBD
7.3/CD
%/NN
to/TO
4,393,237/CD
in/IN
the/DT
six/CD
months/NNS
ended/VBD
June/NNP
30/CD
,/,
1989/CD
./.
Still/RB
,/,
Time/NNP
's/POS
move/NN
is/VBZ
being/VBG
received/VBN
well/RB
,/,
once/RB
again/RB
./.
``/``
It/PRP
's/VBZ
terrific/JJ
for/IN
advertisers/NNS
to/TO
know/VB
the/DT
reader/NN
will/MD
be/VB
paying/VBG
more/JJR
,/,
''/''
said/VBD
Michael/NNP
Drexler/NNP
,/,
national/JJ
media/NNS
director/NN
at/IN
Bozell/NNP
Inc./NNP
ad/NN
agency/NN
./.
``/``
A/DT
few/JJ
drops/NNS
in/IN
circulation/NN
are/VBP
of/IN
no/DT
consequence/NN
./.
It/PRP
's/VBZ
not/RB
a/DT
show/NN
of/IN
weakness/NN
;/:
they/PRP
are/VBP
improving/VBG
the/DT
quality/NN
of/IN
circulation/NN
while/IN
insuring/VBG
their/PRP$
profits/NNS
./.
''/''
Mr./NNP
Heinemann/NNP
said/VBD
the/DT
changes/NNS
represent/VBP
a/DT
new/JJ
focus/NN
in/IN
the/DT
magazine/NN
industry/NN
:/:
a/DT
magazine/NN
's/POS
net/JJ
revenue/NN
per/IN
subscriber/NN
,/,
or/CC
the/DT
actual/JJ
revenue/NN
from/IN
subscribers/NNS
after/IN
discounts/NNS
and/CC
the/DT
cost/NN
of/IN
premiums/NNS
have/VBP
been/VBN
stripped/VBN
away/RP
./.
``/``
The/DT
question/NN
is/VBZ
how/WRB
much/JJ
are/VBP
we/PRP
getting/VBG
from/IN
each/DT
reader/NN
,/,
''/''
said/VBD
Mr./NNP
Heinemann/NNP
./.
Time/NNP
's/POS
rivals/NNS
news-weeklies/NNS
,/,
Washington/NNP
Post/NNP
Co./NNP
's/POS
Newsweek/NNP
and/CC
U.S./NNP
News/NNP
&/CC
World/NNP
Report/NNP
,/,
are/VBP
less/RBR
reliant/JJ
on/IN
electronic/JJ
giveaways/NNS
,/,
and/CC
in/IN
recent/JJ
years/NNS
both/DT
have/VBP
been/VBN
increasing/VBG
their/PRP$
circulation/NN
rate/NN
bases/NNS
./.
Both/DT
magazines/NNS
are/VBP
expected/VBN
to/TO
announce/VB
their/PRP$
ad/NN
rates/NNS
and/CC
circulation/NN
levels/NNS
for/IN
1990/CD
within/IN
a/DT
month/NN
./.
When/WRB
the/DT
news/NN
broke/VBD
of/IN
an/DT
attempted/JJ
coup/NN
in/IN
Panama/NNP
two/CD
weeks/NNS
ago/RB
,/,
Sen./NNP
Christopher/NNP
Dodd/NNP
called/VBD
the/DT
State/NNP
Department/NNP
for/IN
a/DT
briefing/NN
./.
``/``
They/PRP
said/VBD
,/,
`/``
follow/VB
CNN/NNP
,/,
'/''
''/''
he/PRP
told/VBD
reporters/NNS
./.
That/DT
shows/VBZ
how/WRB
far/RB
Ted/NNP
Turner/NNP
's/POS
Cable/NNP
News/NNP
Network/NNP
has/VBZ
come/VBN
since/IN
its/PRP$
birth/NN
nine/CD
years/NNS
ago/RB
,/,
when/WRB
it/PRP
was/VBD
considered/VBN
the/DT
laughingstock/NN
of/IN
television/NN
news/NN
./.
It/PRP
is/VBZ
bigger/JJR
,/,
faster/JJR
and/CC
more/RBR
profitable/JJ
than/IN
the/DT
news/NN
divisions/NNS
of/IN
any/DT
of/IN
the/DT
three/CD
major/JJ
broadcast/NN
networks/NNS
./.
Its/PRP$
niche/NN
as/IN
the/DT
``/``
network/NN
of/IN
record/NN
''/''
during/IN
major/JJ
crises/NNS
draws/VBZ
elite/JJ
audiences/NNS
around/IN
the/DT
world/NN
./.
But/CC
for/IN
all/PDT
its/PRP$
success/NN
,/,
CNN/NNP
has/VBZ
hit/VBN
a/DT
plateau/NN
./.
Although/IN
viewership/NN
soars/NNS
when/WRB
big/JJ
news/NN
breaks/VBZ
,/,
it/PRP
ebbs/VBZ
during/IN
periods/NNS
of/IN
calm/NN
./.
CNN/NNP
executives/NNS
worry/VBP
that/IN
the/DT
network/NN
's/POS
punchy/JJ
but/CC
repetitive/JJ
news/NN
format/NN
may/MD
be/VB
getting/VBG
stale/JJ
and/CC
wo/MD
n't/RB
keep/VB
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coming/VBG
back/RB
as/IN
the/DT
alternatives/NNS
multiply/VBP
for/IN
news/NN
and/CC
information/NN
on/IN
cable-TV/NN
./.
``/``
Just/RB
the/DT
fact/NN
we/PRP
're/VBP
on/IN
24/CD
hours/NNS
is/VBZ
no/DT
longer/RBR
bulletin/NN
,/,
''/''
says/VBZ
Ed/NNP
Turner/NNP
,/,
CNN/NNP
's/POS
executive/JJ
vice/NN
president/NN
,/,
news/NN
gathering/NN
no/DT
relation/NN
to/TO
Ted/NNP
Turner/NNP
``/``
You/PRP
ca/MD
n't/RB
live/VB
on/IN
that/DT
./.
''/''
So/RB
CNN/NNP
,/,
a/DT
unit/NN
of/IN
Atlanta-based/JJ
Turner/NNP
Broadcasting/NNP
System/NNP
Inc./NNP
,/,
is/VBZ
trying/VBG
to/TO
reposition/VB
itself/PRP
as/IN
a/DT
primary/JJ
channel/NN
,/,
or/CC
what/WP
people/NNS
in/IN
the/DT
television/NN
industry/NN
call/VBP
a/DT
``/``
top/NN
of/IN
mind/NN
''/''
network/NN
./.
Tonight/RB
,/,
to/TO
kick/VB
off/RP
the/DT
effort/NN
,/,
CNN/NNP
will/MD
premiere/VB
its/PRP$
first/JJ
prime-time/NN
newscast/NN
in/IN
years/NNS
,/,
an/DT
hourlong/JJ
show/NN
at/IN
6/CD
p.m/RB
./.
Eastern/JJ
time/NN
to/TO
air/VB
head-to-head/RB
against/IN
the/DT
network/NN
newscasts/NNS
./.
The/DT
show/NN
will/MD
be/VB
co-anchored/VBN
by/IN
Bernard/NNP
Shaw/NNP
and/CC
Catherine/NNP
Crier/NNP
,/,
a/DT
34-year-old/JJ
former/JJ
Texas/NNP
judge/NN
and/CC
campus/NN
beauty/NN
queen/NN
who/WP
has/VBZ
never/RB
held/VBN
a/DT
job/NN
in/IN
television/NN
or/CC
journalism/NN
./.
The/DT
new/JJ
show/NN
is/VBZ
perhaps/RB
the/DT
boldest/JJS
in/IN
a/DT
number/NN
of/IN
steps/NNS
the/DT
network/NN
is/VBZ
taking/VBG
to/TO
build/VB
audience/NN
loyalty/NN
by/IN
shifting/VBG
away/RB
from/IN
its/PRP$
current/JJ
format/NN
toward/IN
more/JJR
full-length/JJ
``/``
signature/NN
''/''
programming/NN
with/IN
recognizable/JJ
stars/NNS
./.
To/TO
distinguish/VB
itself/PRP
,/,
CNN/NNP
is/VBZ
also/RB
expanding/VBG
international/JJ
coverage/NN
and/CC
adding/VBG
a/DT
second/JJ
global-news/NN
program/NN
./.
It/PRP
is/VBZ
paying/VBG
higher/JJR
salaries/NNS
--/:
after/IN
years/NNS
of/IN
scrimping/VBG
--/:
to/TO
lure/VB
and/CC
keep/VB
experienced/JJ
staffers/NNS
./.
And/CC
it/PRP
is/VBZ
embarking/VBG
on/IN
an/DT
expensive/JJ
gamble/NN
to/TO
break/VB
major/JJ
stories/NNS
with/IN
a/DT
large/JJ
investigative-reporting/NN
team/NN
./.
``/``
The/DT
next/JJ
stage/NN
is/VBZ
to/TO
get/VB
beyond/IN
the/DT
opinion/NN
leaders/NNS
who/WP
use/VBP
us/PRP
as/IN
a/DT
point/NN
of/IN
reference/NN
to/TO
become/VB
a/DT
point/NN
of/IN
reference/NN
at/IN
ordinary/JJ
dinner/NN
tables/NNS
,/,
''/''
says/VBZ
Jon/NNP
Petrovich/NNP
,/,
executive/JJ
vice/NN
president/NN
of/IN
Headline/NNP
News/NNP
,/,
CNN/NNP
's/POS
sister/NN
network/NN
./.
But/CC
that/DT
wo/MD
n't/RB
be/VB
easy/JJ
./.
Networks/NNS
,/,
like/IN
other/JJ
consumer/NN
products/NNS
,/,
develop/VBP
images/NNS
in/IN
peoples/NNS
'/POS
minds/NNS
that/WDT
are/VBP
n't/RB
easy/JJ
to/TO
change/VB
./.
It/PRP
also/RB
takes/VBZ
money/NN
that/IN
CNN/NNP
has/VBZ
been/VBN
reluctant/JJ
to/TO
spend/VB
to/TO
make/VB
programs/NNS
and/CC
hire/VB
talent/NN
that/IN
viewers/NNS
will/MD
tune/VB
in/RP
specially/RB
to/TO
see/VB
./.
And/CC
the/DT
cable-TV/NN
operators/NNS
--/:
CNN/NNP
's/POS
distributors/NNS
and/CC
part/JJ
owners/NNS
--/:
like/IN
things/NNS
just/RB
the/DT
way/NN
they/PRP
are/VBP
./.
The/DT
repositioning/NN
bid/NN
is/VBZ
aimed/VBN
at/IN
CNN/NNP
's/POS
unsteady/JJ
viewership/NN
--/:
and/CC
what/WP
may/MD
happen/VB
to/TO
it/PRP
as/IN
the/DT
cable-TV/NN
news/NN
market/NN
grows/VBZ
more/RBR
competitive/JJ
./.
Already/RB
,/,
CNN/NNP
is/VBZ
facing/VBG
stronger/JJR
competition/NN
from/IN
Financial/NNP
News/NNP
Network/NNP
Inc./NNP
and/CC
General/NNP
Electric/NNP
Co./NNP
's/POS
Consumer/NNP
News/NNP
and/CC
Business/NNP
Channel/NNP
,/,
both/DT
of/IN
which/WDT
are/VBP
likely/JJ
to/TO
pursue/VB
more/JJR|RBR
general/JJ
news/NN
in/IN
the/DT
future/NN
./.
In/IN
addition/NN
,/,
many/JJ
cable-TV/NN
systems/NNS
themselves/PRP
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airing/VBG
more/JJR
local/JJ
and/CC
regional/JJ
news/NN
programs/NNS
produced/VBN
by/IN
local/JJ
broadcast/NN
stations/NNS
./.
CNN/NNP
wants/VBZ
to/TO
change/VB
its/PRP$
viewers/NNS
'/POS
habits/NNS
./.
Its/PRP$
watchers/NNS
are/VBP
,/,
on/IN
the/DT
whole/NN
,/,
a/DT
disloyal/JJ
group/NN
of/IN
channel-zapping/JJ
``/``
grazers/NNS
''/''
and/CC
news/NN
junkies/NNS
,/,
who/WP
spend/VBP
an/DT
average/NN
of/IN
just/RB
26/CD
minutes/NNS
a/DT
day/NN
watching/VBG
CNN/NNP
,/,
according/VBG
to/TO
audience/NN
research/NN
./.
That/DT
's/VBZ
less/JJR
than/IN
one-third/NN
the/DT
time/NN
that/IN
viewers/NNS
watch/VBP
the/DT

major/JJ
broadcast/NN
networks/NNS
./.
The/DT
brief/JJ
attention/NN
viewers/NNS
give/VBP
CNN/NNP
could/MD
put/VB
it/PRP
at/IN
a/DT
disadvantage/NN
as/IN
ratings/NNS
data/NNS
,/,
and/CC
advertising/NN
,/,
become/VBN
more/RBR
important/JJ
to/TO
cable-TV/NN
channels/NNS
./.
CNN/NNP
's/POS
viewer/NN
habits/NNS
have/VBP
been/VBN
molded/VBN
by/IN
its/PRP$
format/NN
./.
Its/PRP$
strategy/NN
in/IN
the/DT
past/NN
has/VBZ
been/VBN
to/TO
serve/VB
as/IN
a/DT
TV/NN
wire/NN
service/NN
./.
It/PRP
focused/VBD
on/IN
building/NN
up/RP
its/PRP$
news/NN
bureaus/NN
around/IN
the/DT
world/NN
,/,
so/RB
as/IN
events/NNS
took/VBD
place/NN
it/PRP
could/MD
go/VB
live/JJ
quicker/RBR
and/CC
longer/RBR
than/IN
other/JJ
networks/NNS
./.
It/PRP
filled/VBD
its/PRP$
daily/JJ
schedule/NN
with/IN
newscasts/NNS
called/VBN
``/``
Daybreak/NNP
,/,
''/''
``/``
Daywatch/NNP
,/,
''/''
``/``
Newsday/NNP
,/,
''/''
and/CC
``/``
Newsnight/NNP
,/,
''/''
but/CC
the/DT
shows/NNS
varied/VBD
little/JJ
in/IN
content/NN
,/,
personality/NN
or/CC
look/NN
./.
Now/RB
,/,
the/DT
push/NN
is/VBZ
on/RB
for/IN
more-distinctive/JJR
shows/NNS
./.
``/``
Our/PRP$
goal/NN
is/VBZ
to/TO
create/VB
more/JJR
programs/NNS
with/IN
an/DT
individual/JJ
identity/NN
,/,
''/''
says/VBZ
Paul/NNP
Amos/NNP
,/,
CNN/NNP
executive/JJ
vice/NN
president/NN
for/IN
programming/NN
./.
Accordingly/RB
,/,
CNN/NNP
is/VBZ
adding/VBG
a/DT
world-affairs/NNS
show/NN
in/IN
the/DT
morning/NN
because/IN
surveys/NNS
show/VBP
its/PRP$
global-news/NN
hour/NN
in/IN
the/DT
afternoon/NN
is/VBZ
among/IN
its/PRP$
most/RBS
``/``
differentiated/JJ
''/''
programs/NNS
in/IN
viewers/NNS
'/POS
minds/NNS
,/,
says/VBZ
Mr./NNP
Amos/NNP
./.
And/CC
it/PRP
is/VBZ
exploring/VBG
other/JJ
original/JJ
programs/NNS
,/,
similar/JJ
to/TO
its/PRP$
``/``
Larry/NNP
King/NNP
Live/NNP
''/''
and/CC
``/``
Crossfire/NNP
''/''
talk/NN
shows/VBZ
,/,
which/WDT
executives/NNS
hope/VBP
will/MD
keep/VB
people/NNS
tuned/VBN
in/RP
./.
Then/RB
there/EX
's/VBZ
``/``
The/NNP
World/NNP
Today/NNP
,/,
''/''
the/DT
prime-time/NN
newscast/NN
featuring/VBG
Mr./NNP
Shaw/NNP
and/CC
Ms./NNP
Crier/NNP
./.
Until/IN
now/RB
,/,
CNN/NNP
has/VBZ
featured/VBN
its/PRP$
Hollywood/NNP
gossip/NN
show/NN
during/IN
the/DT
key/JJ
evening/NN
period/NN
./.
But/CC
70/CD
%/NN
of/IN
the/DT
cable-television-equipped/JJ
households/NNS
that/WDT
watch/VBP
news/NN
do/VBP
so/RB
between/IN
6:30/CD
p.m./RB
and/CC
7/CD
p.m./RB
,/,
the/DT
network/NN
discovered/VBD
,/,
so/IN
CNN/NNP
wants/VBZ
in/RB
./.
Mr./NNP
Amos/NNP
says/VBZ
the/DT
Shaw-Crier/NNP
team/NN
will/MD
probably/RB
do/VB
two/CD
live/JJ
interviews/NNS
a/DT
day/NN
,/,
with/IN
most/JJS
of/IN
the/DT
program/NN
,/,
at/IN
least/JJS
for/IN
now/RB
,/,
appearing/VBG
similar/JJ
to/TO
CNN/NNP
's/POS
other/JJ
newcasts/NNS
./.
Some/DT
in/IN
the/DT
industry/NN
are/VBP
skeptical/JJ
./.
``/``
I/PRP
find/VBP
it/PRP
hard/JJ
to/TO
conceive/VB
of/IN
people/NNS
switching/VBG
over/IN
to/TO
CNN/NNP
for/IN
what/WP
,/,
at/IN
least/JJS
in/IN
the/DT
public/NN
's/POS
mind/NN
,/,
is/VBZ
the/DT
same/JJ
news/NN
,/,
''/''
says/VBZ
Reuven/NNP
Frank/NNP
,/,
the/DT
former/JJ
two-time/JJ
president/NN
of/IN
NBC/NNP
News/NNP
and/CC
creator/NN
of/IN
the/DT
Huntley-Brinkley/NNP
Report/NNP
./.
The/DT
evening/NN
news/NN
is/VBZ
also/RB
slated/VBN
as/IN
CNN/NNP
's/POS
stage/NN
for/IN
its/PRP$
big/JJ
push/NN
into/IN
investigative/JJ
journalism/NN
./.
In/IN
August/NNP
,/,
the/DT
network/NN
hired/VBD
award-winning/JJ
producer/NN
Pamela/NNP
Hill/NNP
,/,
the/DT
former/JJ
head/NN
of/IN
news/NN
specials/NNS
at/IN
ABC/NNP
./.
She/PRP
's/VBZ
assembling/VBG
a/DT
staff/NN
of/IN
about/RB
35/CD
investigative/JJ
reporters/NNS
who/WP
will/MD
produce/VB
weekly/JJ
,/,
in-depth/JJ
segments/NNS
,/,
with/IN
an/DT
eye/NN
toward/IN
breaking/VBG
big/JJ
stories/NNS
./.
CNN/NNP
executives/NNS
hope/VBP
the/DT
headlines/NNS
created/VBN
by/IN
such/JJ
scoops/NNS
will/MD
generate/VB
excitement/NN
for/IN
its/PRP$
``/``
branded/JJ
''/''
programs/NNS
,/,
in/IN
the/DT
way/NN
``/``
60/NNP
Minutes/NNP
''/''
did/VBD
so/RB
well/RB
for/IN
CBS/NNP
./.
That/DT
's/VBZ
such/PDT
a/DT
departure/NN
from/IN
the/DT
past/NN
that/IN
many/JJ
in/IN
the/DT
industry/NN
are/VBP
skeptical/JJ
CNN/NNP
will/MD
follow/VB
through/RP
with/IN
its/PRP$
investigative/JJ
commitment/NN
,/,
especially/RB
after/IN
it/PRP
sees/VBZ
the/DT
cost/NN
of/IN
producing/VBG
in-depth/JJ
pieces/NNS
./.
``/``
They/PRP
've/VBP
never/RB
shown/VBN
any/DT
inclination/NN
to/TO
spend/VB
money/NN
on/IN
production/NN
,/,
''/''
says/VBZ
Michael/NNP
Mosettig/NNP
,/,
a/DT
senior/JJ
producer/NN
with/IN
MacNeil-Lehrer/NNP
NewsHour/NNP
,/,
who/WP
notes/VBZ
that/IN
CNN/NNP
is/VBZ
indispensable/JJ
to/TO
his/PRP$
job/NN
./.
The/DT
network/NN
's/POS
salaries/NNS
have/VBP
always/RB
ranged/VBN
far/RB
below/IN
industry/NN
standards/NNS
,/,
resulting/VBG
in/IN
a/DT
less-experienced/JJ
work/NN
force/NN
./.
CNN/NNP
recently/RB
gave/VBD
most/JJS
employees/NNS
raises/NNS
of/IN
as/RB
much/JJ
as/IN
15/CD
%/NN
,/,
but/CC
they/PRP
're/VBP
still/RB
drastically/RB
underpaid/JJ
compared/VBN
with/IN
the/DT
networks/NNS
./.
Says/VBZ
Mr./NNP
Mosettig/NNP
:/:
``/``
CNN/NNP
is/VBZ
my/PRP$
wire/NN
service/NN
;/:
they/PRP
're/VBP
on/IN
top/NN
of/IN
everything/NN
./.
But/CC
to/TO
improve/VB
,/,
they/PRP
've/VBP
really/RB
got/VBD
to/TO
make/VB
the/DT
investment/NN
in/IN
people/NNS
./.
''/''
In/IN
any/DT
case/NN
,/,
cable-TV-system/NN
operators/NNS
have/VBP
reason/NN
to/TO
fear/VB
any/DT
tinkering/NN
with/IN
CNN/NNP
's/POS
format/NN
./.
They/PRP
market/VBP
cable-TV/NN
on/IN
the/DT
very/JJ
grazing/NN
opportunities/NNS
CNN/NNP
seeks/VBZ
to/TO
discourage/VB
./.
``/``
We/PRP
would/MD
obviously/RB
be/VB
upset/VBN
if/IN
those/DT
kinds/NNS
of/IN
services/NNS
evolved/VBD
into/IN
more/JJR|RBR
general-interest/JJ
,/,
long-format/JJ
programming/NN
,/,
''/''
says/VBZ
Robert/NNP
Stengel/NNP
,/,
senior/JJ
vice/NN
president/NN
,/,
programming/NN
,/,
of/IN
Continental/NNP
Cablevision/NNP
Inc./NNP
,/,
which/WDT
holds/VBZ
a/DT
2/CD
%/NN
stake/NN
in/IN
Turner/NNP
Broadcasting/NNP
./.
million/CD
households/NNS
were/VBD
tuned/VBN
to/TO
CNN/NNP
during/IN
an/DT
average/JJ
viewing/NN
minute/NN
The/DT
Second/NNP
U.S./NNP
Circuit/NNP
Court/NNP
of/IN
Appeals/NNP
opinion/NN
in/IN
the/DT
Arcadian/NNP
Phosphate/NNP
case/NN
did/VBD
not/RB
repudiate/VB
the/DT
position/NN
Pennzoil/NNP
Co./NNP
took/VBD
in/IN
its/PRP$
dispute/NN
with/IN
Texaco/NNP
,/,
contrary/JJ
to/TO
your/PRP$
Sept./NNP
8/CD
article/NN
``/``
Court/NN
Backs/VBZ
Texaco/NNP
's/POS
View/NN
in/IN
Pennzoil/NNP
Case/NN
--/:
Too/RB
Late/RB
./.
''/''
The/DT
fundamental/JJ
rule/NN
of/IN
contract/NN
law/NN
applied/VBN
to/TO
both/DT
cases/NNS
was/VBD
that/IN
courts/NNS
will/MD
not/RB
enforce/VB
agreements/NNS
to/TO
which/WDT
the/DT
parties/NNS
did/VBD
not/RB
intend/VB
to/TO
be/VB
bound/VBN
./.
In/IN
the/DT
Pennzoil\/Texaco/NNP
litigation/NN
,/,
the/DT
courts/NNS
found/VBD
Pennzoil/NNP
and/CC
Getty/NNP
Oil/NNP
intended/VBD
to/TO
be/VB
bound/VBN
;/:
in/IN
Arcadian/NNP
Phosphates/NNP
they/PRP
found/VBD
there/EX
was/VBD
no/DT
intention/NN
to/TO
be/VB
bound/VBN
./.
Admittedly/RB
,/,
the/DT
principle/NN
in/IN
the/DT
cases/NNS
is/VBZ
the/DT
same/JJ
./.
But/CC
the/DT
outcome/NN
of/IN
a/DT
legal/JJ
dispute/NN
almost/RB
always/RB
turns/VBZ
on/IN
the/DT
facts/NNS
./.
And/CC
the/DT
facts/NNS
,/,
as/IN
found/VBN
by/IN
the/DT
various/JJ
courts/NNS
in/IN
these/DT
two/CD
lawsuits/NNS
,/,
were/VBD
different/JJ
./.
When/WRB
you/PRP
suggest/VBP
otherwise/RB
,/,
you/PRP
leave/VBP
the/DT
realm/NN
of/IN
reporting/NN
and/CC
enter/VB
the/DT
orbit/NN
of/IN
speculation/NN
./.
Charles/NNP
F./NNP
Vihon/NNP
Boston/NNP
Valley/NNP
Federal/NNP
Savings/NNP
&/CC
Loan/NNP
Association/NNP
said/VBD
Imperial/NNP
Corp./NNP
of/IN
America/NNP
withdrew/VBD
from/IN
regulators/NNS
its/PRP$
application/NN
to/TO
buy/VB
five/CD
Valley/NNP
Federal/NNP
branches/NNS
,/,
leaving/VBG
the/DT
transaction/NN
in/IN
limbo/NN
./.
The/DT
broken/JJ
purchase/NN
appears/VBZ
as/IN
additional/JJ
evidence/NN
of/IN
trouble/NN
at/IN
Imperial/NNP
Corp./NNP
,/,
whose/WP$
spokesman/NN
said/VBD
the/DT
company/NN
withdrew/VBD
its/PRP$
application/NN
from/IN
the/DT
federal/JJ
Office/NNP
of/IN
Thrift/NNP
Supervision/NNP
because/IN
of/IN
an/DT
informal/JJ
notice/NN
that/IN
Imperial/NNP
's/POS
thrift/NN
unit/NN
failed/VBD
to/TO
meet/VB
Community/NNP
Reinvestment/NNP
Act/NNP
requirements/NNS
./.
The/DT
Community/NNP
Reinvestment/NNP
Act/NNP
requires/VBZ
savings/NNS
and/CC
loan/NN
associations/NNS
to/TO
lend/VB
money/NN
in/IN
amounts/NNS
related/VBN
to/TO
areas/NNS
where/WRB
deposits/NNS
are/VBP
received/VBN
./.
The/DT
transaction/NN
,/,
announced/VBN
in/IN
August/NNP
,/,
included/VBN
about/RB
$/$
146/CD
million/CD
in/IN
deposits/NNS
at/IN
the/DT
five/CD
outlets/NNS
in/IN
California/NNP
's/POS
San/NNP
Joaquin/NNP
Valley/NNP
./.
Terms/NNS
were/VBD
n't/RB
disclosed/VBN
,/,
but/CC
Valley/NNP
Federal/NNP
had/VBD
said/VBD
it/PRP
expected/VBD
to/TO
post/VB
a/DT
modest/JJ
pretax/JJ
gain/NN
and/CC
to/TO
save/VB
about/RB
$/$
2/CD
million/CD
in/IN
operating/NN
costs/NNS
annually/RB
./.
Valley/NNP
Federal/NNP
said/VBD
Friday/NNP
that/IN
it/PRP
is/VBZ
considering/VBG
whether/IN
to/TO
seek/VB
another/DT
buyer/NN
for/IN
the/DT
branches/NNS
or/CC
to/TO
pursue/VB
the/DT
transaction/NN
with/IN
Imperial/NNP
Corp./NNP
,/,
which/WDT
said/VBD
it/PRP
is/VBZ
attempting/VBG
to/TO
meet/VB
Community/NNP
Reinvestment/NNP
Act/NNP
requirements/NNS
./.
Valley/NNP
Federal/NNP
,/,
with/IN
assets/NNS
of/IN
$/$
3.3/CD
billion/CD
,/,
is/VBZ
based/VBN
in/IN
Van/NNP
Nuys/NNP
./.
Imperial/NNP
Corp./NNP
,/,
based/VBN
in/IN
San/NNP
Diego/NNP
,/,
is/VBZ
the/DT
parent/NN
of/IN
Imperial/NNP
Savings/NNP
&/CC
Loan/NNP
./.
In/IN
the/DT
first/JJ
six/CD
months/NNS
of/IN
the/DT
year/NN
it/PRP
posted/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
33.1/CD
million/CD
./.
Call/VB
it/PRP
the/DT
``/``
we/PRP
're/VBP
too/RB
broke/JJ
to/TO
fight/VB
''/''
defense/NN
./.
Lawyers/NNS
for/IN
dozens/NNS
of/IN
insolvent/JJ
savings/NNS
and/CC
loan/NN
associations/NNS
are/VBP
trying/VBG
a/DT
new/JJ
tack/NN
in/IN
their/PRP$
efforts/NNS
to/TO
defuse/VB
suits/NNS
filed/VBN
by/IN
borrowers/NNS
,/,
developers/NNS
and/CC
creditors/NNS
./.
The/DT
thrifts/NNS
'/POS
lawyers/NNS
claim/VBP
that/IN
the/DT
suits/NNS
,/,
numbering/VBG
700/CD
to/TO
1,000/CD
in/IN
Texas/NNP
alone/RB
,/,
should/MD
be/VB
dismissed/VBN
as/RB
moot/JJ
because/IN
neither/CC
the/DT
S&Ls/NNS
nor/CC
the/DT
extinct/JJ
Federal/NNP
Savings/NNP
and/CC
Loan/NNP
Insurance/NNP
Corp./NNP
has/VBZ
the/DT
money/NN
to/TO
pay/VB
judgments/NNS
./.
Though/IN
the/DT
argument/NN
may/MD
have/VB
a/DT
common-sense/NN
ring/NN
to/TO
it/PRP
,/,
even/RB
the/DT
S&L/NN
lawyers/NNS
concede/VB
there/EX
's/VBZ
little/RB
precedent/JJ
to/TO
back/VB
their/PRP$
position/NN
./.
Still/RB
,/,
one/CD
federal/JJ
appeals/NNS
court/NN
has/VBZ
signaled/VBN
it/PRP
's/VBZ
willing/JJ
to/TO
entertain/VB
the/DT
notion/NN
,/,
and/CC
the/DT
lawyers/NNS
have/VBP
renewed/VBN
their/PRP$
arguments/NNS
in/IN
Texas/NNP
and/CC
eight/CD
other/JJ
states/NNS
where/WRB
the/DT
defense/NN
is/VBZ
permitted/VBN
under/IN
state/NN
law/NN
./.
The/DT
dismissal/NN
of/IN
the/DT
pending/VBG
suits/NNS
could/MD
go/VB
a/DT
long/JJ
way/NN
toward/IN
clearing/VBG
court/NN
dockets/NNS
in/IN
Texas/NNP
and/CC
reducing/VBG
the/DT
FSLIC/NNP
's/POS
massive/JJ
legal/JJ
bills/NNS
,/,
which/WDT
topped/VBD
$/$
73/CD
million/CD
last/JJ
year/NN
./.
The/DT
S&L/NN
lawyers/NNS
were/VBD
encouraged/VBN
last/JJ
month/NN
by/IN
an/DT
appellate-court/NN
ruling/NN
in/IN
two/CD
cases/NNS
brought/VBN
against/IN
defunct/JJ
Sunbelt/NNP
Savings/NNP
&/CC
Loan/NNP
Association/NNP
of/IN
Dallas/NNP
by/IN
the/DT
developers/NNS
of/IN
the/DT
Valley/NNP
Ranch/NNP
,/,
best/RB
known/VBN
as/IN
the/DT
training/NN
center/NN
for/IN
the/DT
Dallas/NNP
Cowboys/NNP
football/NN
team/NN
./.
Sunbelt/NNP
foreclosed/VBD
on/IN
the/DT
ranch/NN
./.
Sunbelt/NNP
and/CC
the/DT
FSLIC/NNP
argued/VBD
to/TO
the/DT
Fifth/NNP
U.S./NNP
Circuit/NNP
Court/NNP
of/IN
Appeals/NNP
``/``
that/IN
there/EX
will/MD
never/RB
be/VB
any/DT
assets/NNS
with/IN
which/WDT
to/TO
satisfy/VB
a/DT
judgment/NN
against/IN
Sunbelt/NNP
Savings/NNP
nor/CC
any/DT
means/NNS
to/TO
collect/VB
from/IN
any/DT
other/JJ
party/NN
,/,
including/VBG
FSLIC/NNP
./.
''/''
``/``
If/IN
true/JJ
,/,
''/''
the/DT
court/NN
wrote/VBD
,/,
``/``
this/DT
contention/NN
would/MD
justify/VB
dismissal/NN
of/IN
these/DT
actions/NNS
on/IN
prudential/JJ
grounds/NNS
./.
''/''
But/CC
the/DT
court/NN
said/VBD
it/PRP
lacked/VBD
enough/RB
financial/JJ
information/NN
about/IN
Sunbelt/NNP
and/CC
the/DT
FSLIC/NNP
and/CC
sent/VBD
the/DT
cases/NNS
back/RB
to/TO
federal/JJ
district/NN
court/NN
in/IN
Dallas/NNP
./.
Charles/NNP
Haworth/NNP
,/,
a/DT
lawyer/NN
for/IN
Sunbelt/NNP
,/,
says/VBZ
he/PRP
plans/VBZ
to/TO
file/VB
a/DT
brief/NN
this/DT
week/NN
urging/VBG
the/DT
district/NN
judge/NN
to/TO
dismiss/VB
the/DT
suits/NNS
,/,
because/IN
Sunbelt/NNP
's/POS
liabilities/NNS
exceeded/VBD
its/PRP$
assets/NNS
by/IN
about/RB
$/$
2/CD
billion/CD
when/WRB
federal/JJ
regulators/NNS
closed/VBD
it/PRP
in/IN
August/NNP
1988/CD
./.
``/``
This/DT
institution/NN
is/VBZ
just/RB
brain/NN
dead/JJ
,/,
''/''
says/VBZ
Mr./NNP
Haworth/NNP
,/,
a/DT
partner/NN
in/IN
the/DT
Dallas/NNP
office/NN
of/IN
Andrews/NNP
&/CC
Kurth/NNP
,/,
a/DT
Houston/NNP
law/NN
firm/NN
./.
But/CC
a/DT
lawyer/NN
for/IN
Triland/NNP
Investment/NNP
Group/NNP
,/,
the/DT
developer/NN
of/IN
Valley/NNP
Ranch/NNP
,/,
dismisses/VBZ
such/JJ
arguments/NNS
as/IN
a/DT
``/``
defense/NN
du/FW
jour/FW
./.
''/''
Attorney/NNP
Richard/NNP
Jackson/NNP
of/IN
Dallas/NNP
says/VBZ
a/DT
judgment/NN
for/IN
Triland/NNP
could/MD
be/VB
satisfied/JJ
in/IN
ways/NNS
other/JJ
than/IN
a/DT
monetary/JJ
award/NN
,/,
including/VBG
the/DT
reversal/NN
of/IN
Sunbelt/NNP
's/POS
foreclosure/NN
on/IN
Valley/NNP
Ranch/NNP
./.
``/``
We/PRP
're/VBP
asking/VBG
the/DT
court/NN
for/IN
a/DT
number/NN
of/IN
things/NNS
he/PRP
can/MD
grant/VB
in/IN
addition/NN
to/TO
the/DT
thrill/NN
of/IN
victory/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
We/PRP
'd/MD
take/VB
the/DT
Valley/NNP
Ranch/NNP
free/JJ
and/CC
clear/JJ
as/IN
a/DT
booby/JJ
prize/NN
./.
''/''
Kenneth/NNP
J./NNP
Thygerson/NNP
,/,
who/WP
was/VBD
named/VBN
president/NN
of/IN
this/DT
thrift/NN
holding/NN
company/NN
in/IN
August/NNP
,/,
resigned/VBD
,/,
citing/VBG
personal/JJ
reasons/NNS
./.
Mr./NNP
Thygerson/NNP
said/VBD
he/PRP
had/VBD
planned/VBN
to/TO
travel/VB
between/IN
the/DT
job/NN
in/IN
Denver/NNP
and/CC
his/PRP$
San/NNP
Diego/NNP
home/NN
,/,
but/CC
has/VBZ
found/VBN
the/DT
commute/NN
too/RB
difficult/JJ
to/TO
continue/VB
./.
A/DT
new/JJ
president/NN
was/VBD
n't/RB
named/VBN
./.
SOUTH/NNP
AFRICA/NNP
FREED/VBD
the/DT
ANC/NNP
's/POS
Sisulu/NNP
and/CC
seven/CD
other/JJ
political/JJ
prisoners/NNS
./.
Thousands/NNS
of/IN
supporters/NNS
,/,
many/JJ
brandishing/VBG
flags/NNS
of/IN
the/DT
outlawed/VBN
African/NNP
National/NNP
Congress/NNP
,/,
gave/VBD
the/DT
anti-apartheid/JJ
activists/NNS
a/DT
tumultuous/JJ
reception/NN
upon/IN
their/PRP$
return/NN
to/TO
black/JJ
townships/NNS
across/IN
the/DT
country/NN
./.
Most/JJS
of/IN
those/DT
freed/VBN
had/VBD
spent/VBN
at/IN
least/JJS
25/CD
years/NNS
in/IN
prison/NN
./.
The/DT
77-year-old/JJ
Sisulu/NNP
,/,
sentenced/VBN
to/TO
life/NN
in/IN
1964/CD
along/RB
with/IN
black/JJ
nationalist/NN
Nelson/NNP
Mandela/NNP
for/IN
plotting/VBG
to/TO
overthrow/VB
the/DT
government/NN
,/,
said/VBD
equality/NN
for/IN
blacks/NNS
in/IN
South/NNP
Africa/NNP
was/VBD
in/IN
reach/NN
./.
The/DT
releases/NNS
,/,
announced/VBN
last/JJ
week/NN
by/IN
President/NNP
de/NNP
Klerk/NNP
,/,
were/VBD
viewed/VBN
as/IN
Pretoria/NNP
's/POS
tacit/JJ
legalization/NN
of/IN
the/DT
ANC/NNP
./.
Mandela/NNP
,/,
considered/VBN
the/DT
most/RBS
prominent/JJ
leader/NN
of/IN
the/DT
ANC/NNP
,/,
remains/VBZ
in/IN
prison/NN
./.
But/CC
his/PRP$
release/NN
within/IN
the/DT
next/JJ
few/JJ
months/NNS
is/VBZ
widely/RB
expected/VBN
./.
The/DT
Soviet/NNP
Union/NNP
reported/VBD
that/IN
thousands/NNS
of/IN
tons/NNS
of/IN
goods/NNS
needed/VBN
to/TO
ease/VB
widespread/JJ
shortages/NNS
across/IN
the/DT
nation/NN
were/VBD
piled/VBN
up/RP
at/IN
ports/NNS
and/CC
rail/NN
depots/NNS
,/,
and/CC
food/NN
shipments/NNS
were/VBD
rotting/VBG
because/RB
of/IN
a/DT
lack/NN
of/IN
people/NNS
and/CC
equipment/NN
to/TO
move/VB
the/DT
cargo/NN
./.
Strikes/NNS
and/CC
mismanagement/NN
were/VBD
cited/VBN
,/,
and/CC
Premier/NNP
Ryzhkov/NNP
warned/VBD
of/IN
``/``
tough/JJ
measures/NNS
./.
''/''
Bush/NNP
indicated/VBD
there/EX
might/MD
be/VB
``/``
room/NN
for/IN
flexibility/NN
''/''
in/IN
a/DT
bill/NN
to/TO
allow/VB
federal/JJ
funding/NN
of/IN
abortions/NNS
for/IN
poor/JJ
women/NNS
who/WP
are/VBP
vicitims/NNS
of/IN
rape/NN
and/CC
incest/NN
./.
He/PRP
reiterated/VBD
his/PRP$
opposition/NN
to/TO
such/JJ
funding/NN
,/,
but/CC
expressed/VBD
hope/NN
of/IN
a/DT
compromise/NN
./.
The/DT
president/NN
,/,
at/IN
a/DT
news/NN
conference/NN
Friday/NNP
,/,
also/RB
renewed/VBD
a/DT
call/NN
for/IN
the/DT
ouster/NN
of/IN
Panama/NNP
's/POS
Noriega/NNP
./.
The/DT
White/NNP
House/NNP
said/VBD
minors/NNS
have/VBP
n't/RB
any/DT
right/NN
to/TO
abortion/NN
without/IN
the/DT
consent/NN
of/IN
their/PRP$
parents/NNS
./.
The/DT
administration/NN
's/POS
policy/NN
was/VBD
stated/VBN
in/IN
a/DT
friend-of-the-court/JJ
brief/NN
urging/VBG
the/DT
Supreme/NNP
Court/NNP
to/TO
give/VB
states/NNS
more/JJR
leeway/NN
to/TO
restrict/VB
abortions/NNS
./.
Ten/CD
of/IN
the/DT
nation/NN
's/POS
governors/NNS
,/,
meanwhile/RB
,/,
called/VBD
on/IN
the/DT
justices/NNS
to/TO
reject/VB
efforts/NNS
to/TO
limit/VB
abortions/NNS
./.
The/DT
Justice/NNP
Department/NNP
announced/VBD
that/IN
the/DT
FBI/NNP
has/VBZ
been/VBN
given/VBN
the/DT
authority/NN
to/TO
seize/VB
U.S./NNP
fugitives/NNS
overseas/RB
without/IN
the/DT
permission/NN
of/IN
foreign/JJ
governments/NNS
./.
Secretary/NNP
of/IN
State/NNP
Baker/NNP
emphasized/VBD
Friday/NNP
that/IN
the/DT
new/JJ
policy/NN
would/MD
n't/RB
be/VB
invoked/VBN
by/IN
the/DT
Bush/NNP
administration/NN
without/IN
full/JJ
consideration/NN
of/IN
foreign-policy/NN
implications/NNS
./.
NASA/NNP
pronounced/VBD
the/DT
space/NN
shuttle/NN
Atlantis/NNP
ready/JJ
for/IN
launch/NN
tomorrow/NN
following/VBG
a/DT
five-day/JJ
postponement/NN
of/IN
the/DT
flight/NN
because/IN
of/IN
a/DT
faulty/JJ
engine/NN
computer/NN
./.
The/DT
device/NN
was/VBD
replaced/VBN
./.
The/DT
spacecraft/NN
's/POS
five/CD
astronauts/NNS
are/VBP
to/TO
dispatch/VB
the/DT
Galileo/NNP
space/NN
probe/NN
on/IN
an/DT
exploration/NN
mission/NN
to/TO
Jupiter/NNP
./.
South/NNP
Korea/NNP
's/POS
President/NNP
Roh/NNP
traveled/VBD
to/TO
the/DT
U.S./NNP
for/IN
a/DT
five-day/JJ
visit/NN
that/WDT
is/VBZ
expected/VBN
to/TO
focus/VB
on/IN
ties/NNS
between/IN
Washington/NNP
and/CC
Seoul/NNP
./.
Roh/NNP
,/,
who/WP
is/VBZ
facing/VBG
calls/NNS
for/IN
the/DT
reduction/NN
of/IN
U.S./NNP
military/JJ
forces/NNS
in/IN
South/NNP
Korea/NNP
,/,
is/VBZ
to/TO
meet/VB
with/IN
Bush/NNP
tomorrow/NN
and/CC
is/VBZ
to/TO
address/VB
a/DT
joint/JJ
session/NN
of/IN
Congress/NNP
on/IN
Wednesday/NNP
./.
China/NNP
's/POS
Communist/JJ
leadership/NN
voted/VBD
to/TO
purge/VB
the/DT
party/NN
of/IN
``/``
hostile/JJ
and/CC
anti-party/JJ
elements/NNS
''/''
and/CC
wealthy/JJ
private/JJ
businessmen/NNS
,/,
whom/WP
they/PRP
called/VBD
exploiters/NNS
./.
The/DT
decision/NN
,/,
reported/VBN
by/IN
the/DT
official/JJ
Xinhua/NNP
News/NNP
Agency/NNP
,/,
indicated/VBD
that/IN
the/DT
crackdown/NN
prompted/VBN
by/IN
student-led/JJ
pro-democracy/JJ
protests/NNS
in/IN
June/NNP
is/VBZ
intensifying/VBG
./.
Hundreds/NNP
of/IN
East/NNP
Germans/NNPS
flocked/VBD
to/TO
Bonn/NNP
's/POS
Embassy/NNP
in/IN
Warsaw/NNP
,/,
bringing/VBG
to/TO
more/JJR
than/IN
1,200/CD
the/DT
number/NN
of/IN
emigres/NNS
expected/VBN
to/TO
flee/VB
to/TO
the/DT
West/NNP
beginning/NN
today/NN
./.
More/JJR
than/IN
2,100/CD
others/NNS
escaped/VBD
to/TO
West/NNP
Germany/NNP
through/IN
Hungary/NNP
over/IN
the/DT
Weekend/NN
./.
In/IN
Leipzig/NNP
,/,
activists/NNS
vowed/VBD
to/TO
continue/VB
street/NN
protests/NNS
to/TO
demand/VB
internal/JJ
change/NN
./.
Zaire/NNP
's/POS
President/NNP
Mobutu/NNP
met/VBD
in/IN
southern/JJ
France/NNP
with/IN
Angolan/JJ
rebel/NN
leader/NN
Savimbi/NNP
and/CC
a/DT
senior/JJ
U.S./NNP
envoy/NN
in/IN
a/DT
bid/NN
to/TO
revive/VB
an/DT
accord/NN
to/TO
end/VB
Angola/NNP
's/POS
civil/JJ
war/NN
./.
Details/NNS
of/IN
the/DT
talks/NNS
,/,
described/VBN
by/IN
a/DT
Zairean/JJ
official/NN
as/IN
``/``
very/RB
delicate/JJ
,/,
''/''
were/VBD
n't/RB
disclosed/VBN
./.
PLO/NNP
leader/NN
Arafat/NNP
insisted/VBD
on/IN
guarantees/NNS
that/IN
any/DT
elections/NNS
in/IN
the/DT
Israeli-occupied/JJ
territories/NNS
would/MD
be/VB
impartial/JJ
./.
He/PRP
made/VBD
his/PRP$
remarks/NNS
to/TO
a/DT
PLO/NNP
gathering/NN
in/IN
Baghdad/NNP
./.
In/IN
the/DT
occupied/JJ
lands/NNS
,/,
underground/JJ
leaders/NNS
of/IN
the/DT
Arab/JJ
uprising/NN
rejected/VBD
a/DT
U.S./NNP
plan/NN
to/TO
arrange/VB
Israeli-Palestinian/JJ
talks/NNS
as/IN
Shamir/NNP
opposed/VBD
holding/VBG
such/JJ
discussions/NNS
in/IN
Cairo/NNP
./.
Lebanese/JJ
Christian/JJ
lawmakers/NNS
presented/VBN
to/TO
Arab/NNP
mediators/NNS
at/IN
talks/NNS
in/IN
Saudi/NNP
Arabia/NNP
proposals/NNS
for/IN
a/DT
new/JJ
timetable/NN
for/IN
the/DT
withdrawal/NN
of/IN
Syria/NNP
's/POS
forces/NNS
from/IN
Lebanon/NNP
./.
A/DT
plan/NN
currently/RB
under/IN
study/NN
gives/VBZ
Damascus/NNP
two/CD
years/NNS
to/TO
pull/VB
back/RB
to/TO
eastern/JJ
Lebanon/NNP
,/,
starting/VBG
from/IN
the/DT
time/NN
Beirut/NNP
's/POS
legislature/NN
increases/VBZ
political/JJ
power/NN
for/IN
Moslems/NNPS
./.
Hurricane/NNP
Jerry/NNP
threatened/VBD
to/TO
combine/VB
with/IN
the/DT
highest/JJS
tides/NNS
of/IN
the/DT
year/NN
to/TO
swamp/VB
the/DT
Texas-Louisiana/NNP
coast/NN
./.
Thousands/NNS
of/IN
residents/NNS
of/IN
low-lying/JJ
areas/NNS
were/VBD
ordered/VBN
to/TO
evacuate/VB
as/IN
the/DT
storm/NN
headed/VBD
north/RB
in/IN
the/DT
Gulf/NNP
of/IN
Mexico/NNP
with/IN
80/CD
mph/JJ
winds/NNS
./.
A/DT
group/NN
of/IN
Arby/NNP
's/POS
franchisees/NNS
said/VBD
they/PRP
formed/VBD
an/DT
association/NN
to/TO
oppose/VB
Miami/NNP
Beach/NNP
financier/NN
Victor/NNP
Posner/NNP
's/POS
control/NN
of/IN
the/DT
restaurant/NN
chain/NN
./.
The/DT
decision/NN
is/VBZ
the/DT
latest/JJS
move/NN
in/IN
an/DT
escalating/VBG
battle/NN
between/IN
the/DT
franchisees/NNS
and/CC
Mr./NNP
Posner/NNP
that/WDT
began/VBD
in/IN
August/NNP
./.
At/IN
the/DT
time/NN
,/,
a/DT
group/NN
called/VBD
R.B./NNP
Partners/NNP
Ltd./NNP
,/,
consisting/VBG
of/IN
eight/CD
of/IN
Arby/NNP
's/POS
largest/JJS
franchisees/NNS
,/,
offered/VBD
more/JJR
than/IN
$/$
200/CD
million/CD
to/TO
buy/VB
Arby/NNP
's/POS
Inc./NN
,/,
which/WDT
is/VBZ
part/NN
of/IN
DWG/NNP
Corp/NNP
./.
DWG/NNP
is/VBZ
a/DT
holding/NN
company/NN
controlled/VBN
by/IN
Mr./NNP
Posner/NNP
./.
One/CD
week/NN
later/RB
,/,
Leonard/NNP
H./NNP
Roberts/NNP
,/,
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
Arby/NNP
's/POS
,/,
was/VBD
fired/VBN
in/IN
a/DT
dispute/NN
with/IN
Mr./NNP
Posner/NNP
./.
Friday/NNP
,/,
42/CD
franchisees/NNS
announced/VBD
the/DT
formation/NN
of/IN
an/DT
association/NN
--/:
called/VBN
A.P./NNP
Association/NNP
Inc./NNP
--/:
to/TO
``/``
preserve/VB
the/DT
integrity/NN
of/IN
the/DT
Arby/NNP
's/POS
system/NN
./.
''/''
The/DT
franchisees/NNS
,/,
owners/NNS
or/CC
operators/NNS
of/IN
1,000/CD
of/IN
the/DT
1,900/CD
franchised/JJ
Arby/NNP
's/POS
in/IN
the/DT
U.S./NNP
,/,
said/VBD
:/:
``/``
We/PRP
have/VBP
concluded/VBN
that/IN
continued/JJ
control/NN
of/IN
Arby/NNP
's/POS
by/IN
Victor/NNP
Posner/NNP
is/VBZ
totally/RB
unacceptable/JJ
to/TO
us/PRP
,/,
because/IN
it/PRP
is/VBZ
extremely/RB
likely/JJ
to/TO
cause/VB
irreparable/JJ
damage/NN
to/TO
the/DT
Arby/NNP
's/POS
system/NN
./.
We/PRP
support/VBP
all/DT
efforts/NNS
to/TO
remove/VB
Victor/NNP
Posner/NNP
from/IN
control/NN
of/IN
Arby/NNP
's/POS
Inc./NNP
and/CC
the/DT
Arby/NNP
's/POS
system/NN
./.
''/''
The/DT
group/NN
said/VBD
it/PRP
would/MD
consider/VB
,/,
among/IN
other/JJ
things/NNS
,/,
withholding/VBG
royalty/NN
payments/NNS
and/CC
initiating/VBG
a/DT
class-action/JJ
lawsuit/NN
seeking/VBG
court/NN
approval/NN
for/IN
the/DT
withholdings/NNS
./.
In/IN
Florida/NNP
,/,
Renee/NNP
Mottram/NNP
,/,
a/DT
senior/JJ
vice/NN
president/NN
at/IN
DWG/NNP
,/,
responded/VBD
:/:
``/``
We/PRP
do/VBP
n't/RB
think/VB
any/DT
individual/NN
or/CC
group/NN
should/MD
disrupt/VB
a/DT
winning/JJ
system/NN
or/CC
illegally/RB
interfere/VB
with/IN
existing/JJ
contractual/JJ
relationships/NNS
for/IN
their/PRP$
own/JJ
self-serving/JJ
motives/NNS
./.
''/''
September/NNP
's/POS
steep/JJ
rise/NN
in/IN
producer/NN
prices/NNS
shows/VBZ
that/IN
inflation/NN
still/RB
persists/VBZ
,/,
and/CC
the/DT
pessimism/NN
over/IN
interest/NN
rates/NNS
caused/VBN
by/IN
the/DT
new/JJ
price/NN
data/NNS
contributed/VBD
to/TO
the/DT
stock/NN
market/NN
's/POS
plunge/NN
Friday/NNP
./.
After/IN
falling/VBG
for/IN
three/CD
consecutive/JJ
months/NNS
,/,
the/DT
producer/NN
price/NN
index/NN
for/IN
finished/JJ
goods/NNS
shot/VBD
up/RB
0.9/CD
%/NN
last/JJ
month/NN
,/,
the/DT
Labor/NNP
Department/NNP
reported/VBD
Friday/NNP
,/,
as/IN
energy/NN
prices/NNS
jumped/VBD
after/IN
tumbling/VBG
through/IN
the/DT
summer/NN
./.
Although/IN
the/DT
report/NN
,/,
which/WDT
was/VBD
released/VBN
before/IN
the/DT
stock/NN
market/NN
opened/VBD
,/,
did/VBD
n't/RB
trigger/VB
the/DT
190.58-point/JJ
drop/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
,/,
analysts/NNS
said/VBD
it/PRP
did/VBD
play/VB
a/DT
role/NN
in/IN
the/DT
market/NN
's/POS
decline/NN
./.
Analysts/NNS
immediately/RB
viewed/VBD
the/DT
price/NN
data/NN
,/,
the/DT
grimmest/JJS
inflation/NN
news/NN
in/IN
months/NNS
,/,
as/IN
evidence/NN
that/IN
the/DT
Federal/NNP
Reserve/NNP
was/VBD
unlikely/JJ
to/TO
allow/VB
interest/NN
rates/NNS
to/TO
fall/VB
as/IN
many/JJ
investors/NNS
had/VBD
hoped/VBN
./.
Further/RB
fueling/VBG
the/DT
belief/NN
that/IN
pressures/NNS
in/IN
the/DT
economy/NN
were/VBD
sufficient/JJ
to/TO
keep/VB
the/DT
Fed/NNP
from/IN
easing/VBG
credit/NN
,/,
the/DT
Commerce/NNP
Department/NNP
reported/VBD
Friday/NNP
that/IN
retail/JJ
sales/NNS
grew/VBD
0.5/CD
%/NN
in/IN
September/NNP
,/,
to/TO
$/$
145.21/CD
billion/CD
./.
That/DT
rise/NN
came/VBD
on/IN
top/NN
of/IN
a/DT
0.7/CD
%/NN
gain/NN
in/IN
August/NNP
,/,
and/CC
suggested/VBD
there/EX
is/VBZ
still/RB
healthy/JJ
consumer/NN
demand/NN
in/IN
the/DT
economy/NN
./.
``/``
I/PRP
think/VBP
the/DT
Friday/NNP
report/NN
,/,
combined/VBN
with/IN
the/DT
actions/NNS
of/IN
the/DT
Fed/NNP
,/,
weakened/VBD
the/DT
belief/NN
that/IN
there/EX
was/VBD
going/VBG
to/TO
be/VB
an/DT
imminent/JJ
easing/NN
of/IN
monetary/JJ
policy/NN
,/,
''/''
said/VBD
Robert/NNP
Dederick/NNP
,/,
chief/JJ
economist/NN
at/IN
Northern/NNP
Trust/NNP
Co./NNP
in/IN
Chicago/NNP
./.
But/CC
economists/NNS
were/VBD
divided/JJ
over/IN
the/DT
extent/NN
of/IN
the/DT
inflation/NN
threat/NN
signaled/VBD
by/IN
the/DT
new/JJ
numbers/NNS
./.
``/``
The/DT
overall/JJ
0.9/CD
%/NN
increase/NN
is/VBZ
serious/JJ
in/IN
itself/PRP
,/,
but/CC
what/WP
is/VBZ
even/RB
worse/JJR
is/VBZ
that/IN
excluding/VBG
food/NN
and/CC
energy/NN
,/,
the/DT
producer/NN
price/NN
index/NN
still/RB
increased/VBD
by/IN
0.7/CD
%/NN
,/,
''/''
said/VBD
Gordon/NNP
Richards/NNP
,/,
an/DT
economist/NN
at/IN
the/DT
National/NNP
Association/NNP
of/IN
Manufacturers/NNP
./.
But/CC
Sung/NNP
Won/NNP
Sohn/NNP
,/,
chief/JJ
economist/NN
at/IN
Norwest/NNP
Corp./NNP
in/IN
Minneapolis/NNP
,/,
blamed/VBD
rising/VBG
energy/NN
prices/NNS
and/CC
the/DT
annual/JJ
autumn/NN
increase/NN
in/IN
car/NN
prices/NNS
for/IN
most/JJS
of/IN
the/DT
September/NNP
jump/NN
./.
``/``
I/PRP
would/MD
say/VB
this/DT
is/VBZ
not/RB
bad/JJ
news/NN
;/:
this/DT
is/VBZ
a/DT
blip/NN
,/,
''/''
he/PRP
said/VBD
./.
``/``
The/DT
core/JJ
rate/NN
is/VBZ
not/RB
really/RB
out/IN
of/IN
line/NN
./.
''/''
All/DT
year/NN
,/,
energy/NN
prices/NNS
have/VBP
skewed/VBN
the/DT
producer/NN
price/NN
index/NN
,/,
which/WDT
measures/VBZ
changes/NNS
in/IN
the/DT
prices/NNS
producers/NNS
receive/VBP
for/IN
goods/NNS
./.
Inflation/NN
unquestionably/RB
has/VBZ
fallen/VBN
back/RB
from/IN
its/PRP$
torrid/JJ
pace/NN
last/JJ
winter/NN
,/,
when/WRB
a/DT
steep/JJ
run-up/NN
in/IN
world/NN
oil/NN
prices/NNS
sent/VBD
the/DT
index/NN
surging/VBG
at/IN
double-digit/JJ
annual/JJ
rates/NNS
./.
Energy/NN
prices/NNS
then/RB
plummeted/VBN
through/IN
the/DT
summer/NN
,/,
causing/VBG
the/DT
index/NN
to/TO
decline/VB
for/IN
three/CD
consecutive/JJ
months/NNS
./.
Overall/RB
,/,
the/DT
index/NN
has/VBZ
climbed/VBN
at/IN
a/DT
5.1/CD
%/NN
compound/JJ
annual/JJ
rate/NN
since/IN
the/DT
start/NN
of/IN
the/DT
year/NN
,/,
the/DT
Labor/NNP
Department/NNP
said/VBD
./.
While/IN
far/RB
more/RBR
restrained/JJ
than/IN
the/DT
pace/NN
at/IN
the/DT
beginning/NN
of/IN
the/DT
year/NN
,/,
that/WDT
is/VBZ
still/RB
a/DT
steeper/JJR
rise/NN
than/IN
the/DT
4.0/CD
%/NN
increase/NN
for/IN
all/DT
of/IN
1988/CD
./.
Moreover/RB
,/,
this/DT
year/NN
's/POS
good/JJ
inflation/NN
news/NN
may/MD
have/VB
ended/VBN
last/JJ
month/NN
,/,
when/WRB
energy/NN
prices/NNS
zoomed/VBD
up/RB
6.5/CD
%/NN
after/IN
plunging/VBG
7.3/CD
%/NN
in/IN
August/NNP
./.
Some/DT
analysts/NNS
expect/VBP
oil/NN
prices/NNS
to/TO
remain/VB
relatively/RB
stable/JJ
in/IN
the/DT
months/NNS
ahead/RB
,/,
leaving/VBG
the/DT
future/JJ
pace/NN
of/IN
inflation/NN
uncertain/JJ
./.
Analysts/NNS
had/VBD
expected/VBN
that/IN
the/DT
climb/NN
in/IN
oil/NN
prices/NNS
last/JJ
month/NN
would/MD
lead/VB
to/TO
a/DT
substantial/JJ
rise/NN
in/IN
the/DT
producer/NN
price/NN
index/NN
,/,
but/CC
the/DT
0.9/CD
%/NN
climb/NN
was/VBD
higher/JJR
than/IN
most/JJS
anticipated/VBD
./.
``/``
I/PRP
think/VBP
the/DT
resurgence/NN
inflation/NN
a/DT
few/JJ
months/NNS
,/,
''/''
said/VBD
John/NNP
Mueller/NNP
,/,
chief/JJ
economist/NN
at/IN
Bell/NNP
Mueller/NNP
Cannon/NNP
,/,
a/DT
Washington/NNP
economic/JJ
forecasting/NN
firm/NN
./.
He/PRP
predicted/VBD
that/DT
inflation/NN
will/MD
moderate/VB
next/JJ
year/NN
,/,
saying/VBG
that/IN
credit/NN
conditions/NNS
are/VBP
fairly/RB
tight/JJ
world-wide/RB
./.
But/CC
Dirk/NNP
Van/NNP
Dongen/NNP
,/,
president/NN
of/IN
the/DT
National/NNP
Association/NNP
of/IN
Wholesaler-Distributors/NNP
,/,
said/VBD
that/IN
last/JJ
month/NN
's/POS
rise/NN
``/``
is/VBZ
n't/RB
as/RB
bad/JJ
an/DT
omen/NN
''/''
as/IN
the/DT
0.9/CD
%/NN
figure/NN
suggests/VBZ
./.
``/``
If/IN
you/PRP
examine/VBP
the/DT
data/NN
carefully/RB
,/,
the/DT
increase/NN
is/VBZ
concentrated/VBN
in/IN
energy/NN
and/CC
motor/NN
vehicle/NN
prices/NNS
,/,
rather/RB
than/IN
being/VBG
a/DT
broad-based/JJ
advance/NN
in/IN
the/DT
prices/NNS
of/IN
consumer/NN
and/CC
industrial/JJ
goods/NNS
,/,
''/''
he/PRP
explained/VBD
./.
Passenger/NN
car/NN
prices/NNS
jumped/VBD
3.8/CD
%/NN
in/IN
September/NNP
,/,
after/IN
climbing/VBG
0.5/CD
%/NN
in/IN
August/NNP
and/CC
declining/VBG
in/IN
the/DT
late/JJ
spring/NN
and/CC
summer/NN
./.
Many/JJ
analysts/NNS
said/VBD
the/DT
September/NNP
increase/NN
was/VBD
a/DT
one-time/JJ
event/NN
,/,
coming/VBG
as/IN
dealers/NNS
introduced/VBD
their/PRP$
1990/CD
models/NNS
./.
Although/IN
all/PDT
the/DT
price/NN
data/NNS
were/VBD
adjusted/VBN
for/IN
normal/JJ
seasonal/JJ
fluctuations/NNS
,/,
car/NN
prices/NNS
rose/VBD
beyond/IN
the/DT
customary/JJ
autumn/NN
increase/NN
./.
Prices/NNS
for/IN
capital/NN
equipment/NN
rose/VBD
a/DT
hefty/JJ
1.1/CD
%/NN
in/IN
September/NNP
,/,
while/IN
prices/NNS
for/IN
home/NN
electronic/JJ
equipment/NN
fell/VBD
1.1/CD
%/NN
./.
Food/NN
prices/NNS
declined/VBD
0.6/CD
%/NN
,/,
after/IN
climbing/VBG
0.3/CD
%/NN
in/IN
August/NNP
./.
Meanwhile/RB
,/,
the/DT
retail/JJ
sales/NNS
report/NN
showed/VBD
that/IN
car/NN
sales/NNS
rose/VBD
0.8/CD
%/NN
in/IN
September/NNP
to/TO
$/$
32.82/CD
billion/CD
./.
But/CC
at/IN
least/JJS
part/NN
of/IN
the/DT
increase/NN
could/MD
have/VB
come/VBN
from/IN
higher/JJR
prices/NNS
,/,
analysts/NNS
said/VBD
./.
Sales/NNS
at/IN
general/JJ
merchandise/NN
stores/NNS
rose/VBD
1.7/CD
%/NN
after/IN
declining/VBG
0.6/CD
%/NN
in/IN
August/NNP
,/,
while/IN
sales/NNS
of/IN
building/NN
materials/NNS
fell/VBD
1.8/CD
%/NN
after/IN
rising/VBG
1.7/CD
%/NN
./.
Producer/NN
prices/NNS
for/IN
intermediate/JJ
goods/NNS
grew/VBD
0.4/CD
%/NN
in/IN
September/NNP
,/,
after/IN
dropping/VBG
for/IN
three/CD
consecutive/JJ
months/NNS
./.
Prices/NNS
for/IN
crude/JJ
goods/NNS
,/,
an/DT
array/NN
of/IN
raw/JJ
materials/NNS
,/,
jumped/VBD
1.1/CD
%/NN
after/IN
declining/VBG
1.9/CD
%/NN
in/IN
August/NNP
and/CC
edging/VBG
up/RP
0.2/CD
%/NN
in/IN
July/NNP
./.
Here/RB
are/VBP
the/DT
Labor/NNP
Department/NNP
's/POS
producer/NN
price/NN
indexes/NNS
1982/CD
=/SYM
100/CD
September/NNP
,/,
before/IN
seasonal/JJ
adjustment/NN
,/,
and/CC
the/DT
percentage/NN
changes/NNS
from/IN
September/NNP
,/,
1988/CD
./.
CityFed/NNP
Financial/NNP
Corp./NNP
said/VBD
it/PRP
expects/VBZ
to/TO
report/VB
a/DT
loss/NN
of/IN
at/IN
least/JJS
$/$
125/CD
million/CD
to/TO
$/$
150/CD
million/CD
for/IN
the/DT
third/JJ
quarter/NN
./.
In/IN
the/DT
year-earlier/JJ
period/NN
,/,
CityFed/NNP
had/VBD
net/JJ
income/NN
of/IN
$/$
485,000/CD
,/,
but/CC
no/DT
per-share/JJ
earnings/NNS
./.
CityFed/NNP
's/POS
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
John/NNP
Atherton/NNP
,/,
said/VBD
the/DT
loss/NN
stems/VBZ
from/IN
several/JJ
factors/NNS
./.
He/PRP
said/VBD
nonperforming/JJ
assets/NNS
rose/VBD
to/TO
slightly/RB
more/JJR
than/IN
$/$
700/CD
million/CD
from/IN
$/$
516/CD
million/CD
between/IN
June/NNP
and/CC
September/NNP
./.
Approximately/RB
85/CD
%/NN
of/IN
the/DT
total/NN
consisted/VBD
of/IN
nonperforming/JJ
commercial/JJ
real/JJ
estate/NN
assets/NNS
./.
Accordingly/RB
,/,
CityFed/NNP
estimated/VBD
that/IN
it/PRP
will/MD
provide/VB
between/IN
$/$
85/CD
million/CD
and/CC
$/$
110/CD
million/CD
for/IN
credit/NN
losses/NNS
in/IN
the/DT
third/JJ
quarter/NN
./.
CityFed/NNP
added/VBD
that/IN
significant/JJ
additional/JJ
loan-loss/JJ
provisions/NNS
may/MD
be/VB
required/VBN
by/IN
federal/JJ
regulators/NNS
as/IN
part/NN
of/IN
the/DT
current/JJ
annual/JJ
examination/NN
of/IN
City/NNP
Federal/NNP
Savings/NNP
Bank/NNP
,/,
CityFed/NNP
's/POS
primary/JJ
subsidiary/NN
,/,
based/VBN
in/IN
Somerset/NNP
,/,
N.J/NNP
./.
City/NNP
Federal/NNP
operates/VBZ
105/CD
banking/NN
offices/NNS
in/IN
New/NNP
Jersey/NNP
and/CC
Florida/NNP
./.
Mr./NNP
Atherton/NNP
said/VBD
CityFed/NNP
will/MD
also/RB
mark/VB
its/PRP$
portfolio/NN
of/IN
high-yield/JJ
corporate/JJ
bonds/NNS
to/TO
market/NN
as/IN
a/DT
result/NN
of/IN
federal/JJ
legislation/NN
requiring/VBG
that/IN
savings/NNS
institutions/NNS
divest/VB
themselves/PRP
of/IN
such/JJ
bonds/NNS
./.
That/DT
action/NN
,/,
CityFed/NNP
said/VBD
,/,
will/MD
result/VB
in/IN
a/DT
charge/NN
against/IN
third-quarter/JJ
results/NNS
of/IN
approximately/RB
$/$
30/CD
million/CD
./.
CityFed/NNP
also/RB
said/VBD
it/PRP
expects/VBZ
to/TO
shed/VB
its/PRP$
remaining/VBG
mortgage/NN
loan/NN
origination/NN
operations/NNS
outside/IN
its/PRP$
principal/JJ
markets/NNS
in/IN
New/NNP
Jersey/NNP
and/CC
Florida/NNP
and/CC
,/,
as/IN
a/DT
result/NN
,/,
is/VBZ
taking/VBG
a/DT
charge/NN
for/IN
discontinued/JJ
operations/NNS
./.
All/PDT
these/DT
actions/NNS
,/,
Mr./NNP
Atherton/NNP
said/VBD
,/,
will/MD
result/VB
in/IN
a/DT
loss/NN
of/IN
$/$
125/CD
million/CD
to/TO
$/$
150/CD
million/CD
for/IN
the/DT
third/JJ
quarter/NN
./.
He/PRP
added/VBD
,/,
however/RB
:/:
``/``
Depending/VBG
on/IN
the/DT
resolution/NN
of/IN
certain/JJ
accounting/NN
issues/NNS
relating/VBG
to/TO
mortgages/NNS
servicing/NN
and/CC
the/DT
outcome/NN
of/IN
the/DT
annual/JJ
examination/NN
of/IN
City/NNP
Federal/NNP
currently/RB
in/IN
progress/NN
with/IN
respect/NN
to/TO
the/DT
appropriate/JJ
level/NN
of/IN
loan/NN
loss/NN
reserves/NNS
,/,
the/DT
total/JJ
loss/NN
for/IN
the/DT
quarter/NN
could/MD
significantly/RB
exceed/VB
this/DT
range/NN
./.
''/''
CenTrust/NNP
Savings/NNP
Bank/NNP
said/VBD
federal/JJ
thrift/NN
regulators/NNS
ordered/VBD
it/PRP
to/TO
suspend/VB
dividend/NN
payments/NNS
on/IN
its/PRP$
two/CD
classes/NNS
of/IN
preferred/JJ
stock/NN
,/,
indicating/VBG
that/IN
regulators/NNS
'/POS
concerns/NNS
about/IN
the/DT
troubled/JJ
institution/NN
have/VBP
heightened/VBN
./.
In/IN
a/DT
statement/NN
,/,
Miami-based/JJ
CenTrust/NNP
said/VBD
the/DT
regulators/NNS
cited/VBD
the/DT
thrift/NN
's/POS
operating/NN
losses/NNS
and/CC
``/``
apparent/JJ
losses/NNS
''/''
in/IN
its/PRP$
junk-bond/NN
portfolio/NN
in/IN
ordering/VBG
the/DT
suspension/NN
of/IN
the/DT
dividends/NNS
./.
Regulators/NNS
also/RB
ordered/VBD
CenTrust/NNP
to/TO
stop/VB
buying/VBG
back/RP
the/DT
preferred/JJ
stock/NN
./.
David/NNP
L./NNP
Paul/NNP
,/,
chairman/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
criticized/VBD
the/DT
federal/JJ
Office/NNP
of/IN
Thrift/NNP
Supervision/NNP
,/,
which/WDT
issued/VBD
the/DT
directive/NN
,/,
saying/VBG
it/PRP
was/VBD
``/``
inappropriate/JJ
''/''
and/CC
based/VBN
on/IN
``/``
insufficient/JJ
''/''
reasons/NNS
./.
He/PRP
said/VBD
the/DT
thrift/NN
will/MD
try/VB
to/TO
get/VB
regulators/NNS
to/TO
reverse/VB
the/DT
decision/NN
./.
The/DT
suspension/NN
of/IN
a/DT
preferred/JJ
stock/NN
dividend/NN
is/VBZ
a/DT
serious/JJ
step/NN
that/WDT
signals/VBZ
that/IN
regulators/NNS
have/VBP
deep/JJ
concerns/NNS
about/IN
an/DT
institution/NN
's/POS
health/NN
./.
In/IN
March/NNP
,/,
regulators/NNS
labeled/VBD
CenTrust/NNP
a/DT
``/``
troubled/JJ
institution/NN
,/,
''/''
largely/RB
because/IN
of/IN
its/PRP$
big/JJ
junk-bond/NN
holdings/NNS
and/CC
its/PRP$
operating/NN
losses/NNS
./.
In/IN
the/DT
same/JJ
month/NN
,/,
the/DT
Office/NNP
of/IN
Thrift/NNP
Supervision/NNP
ordered/VBD
the/DT
institution/NN
to/TO
stop/VB
paying/VBG
common/JJ
stock/NN
dividends/NNS
until/IN
its/PRP$
operations/NNS
were/VBD
on/IN
track/NN
./.
For/IN
the/DT
nine/CD
months/NNS
ended/VBD
June/NNP
30/CD
,/,
CenTrust/NNP
had/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
21.3/CD
million/CD
,/,
compared/VBN
with/IN
year-earlier/JJ
net/JJ
income/NN
of/IN
$/$
52.8/CD
million/CD
./.
CenTrust/NNP
,/,
which/WDT
is/VBZ
Florida/NNP
's/POS
largest/JJS
thrift/NN
,/,
holds/VBZ
one/CD
of/IN
the/DT
largest/JJS
junk-bond/NN
portfolios/NNS
of/IN
any/DT
thrift/NN
in/IN
the/DT
nation/NN
./.
Since/IN
April/NNP
,/,
it/PRP
has/VBZ
pared/VBN
its/PRP$
high-yield/JJ
bond/NN
holdings/NNS
to/TO
about/RB
$/$
890/CD
million/CD
from/IN
$/$
1.35/CD
billion/CD
./.
Mr./NNP
Paul/NNP
said/VBD
only/RB
about/RB
$/$
150/CD
million/CD
of/IN
the/DT
current/JJ
holdings/NNS
are/VBP
tradeable/JJ
securities/NNS
registered/VBN
with/IN
the/DT
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
./.
The/DT
remainder/NN
,/,
he/PRP
said/VBD
,/,
are/VBP
commercial/JJ
loan/NN
participations/NNS
,/,
or/CC
private/JJ
placements/NNS
,/,
that/WDT
are/VBP
n't/RB
filed/VBN
with/IN
the/DT
SEC/NNP
and/CC
do/VBP
n't/RB
have/VB
a/DT
ready/JJ
market/NN
./.
CenTrust/NNP
and/CC
regulators/NNS
have/VBP
been/VBN
in/IN
a/DT
dispute/NN
over/IN
market/NN
valuations/NNS
for/IN
the/DT
junk/NN
bonds/NNS
./.
The/DT
Office/NNP
of/IN
Thrift/NNP
Supervision/NNP
has/VBZ
been/VBN
hounding/VBG
CenTrust/NNP
to/TO
provide/VB
current/JJ
market/NN
values/NNS
for/IN
its/PRP$
holdings/NNS
,/,
but/CC
CenTrust/NNP
has/VBZ
said/VBD
it/PRP
ca/MD
n't/RB
easily/RB
obtain/VB
such/JJ
values/NNS
because/IN
of/IN
the/DT
relative/JJ
illiquidity/NN
of/IN
the/DT
bonds/NNS
and/CC
lack/NN
of/IN
a/DT
ready/JJ
market/NN
./.
Regulators/NNS
have/VBP
become/VBN
increasingly/RB
antsy/JJ
about/IN
CenTrust/NNP
's/POS
and/CC
other/JJ
thrifts/NNS
'/POS
junk-bond/NN
holdings/NNS
in/IN
light/NN
of/IN
the/DT
recent/JJ
federal/JJ
thrift/NN
bailout/NN
legislation/NN
and/CC
the/DT
recent/JJ
deep/JJ
decline/NN
in/IN
the/DT
junk-bond/NN
market/NN
./.
The/DT
legislation/NN
requires/VBZ
thrifts/NNS
to/TO
divest/VB
themselves/PRP
of/IN
junk/NN
bonds/NNS
in/IN
the/DT
new/JJ
,/,
somber/JJ
regulatory/JJ
climate/NN
./.
In/IN
American/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
Friday/NNP
,/,
CenTrust/NNP
common/JJ
shares/NNS
closed/VBD
at/IN
$/$
3/CD
,/,
down/RB
12.5/CD
cents/NNS
./.
In/IN
a/DT
statement/NN
Friday/NNP
,/,
Mr./NNP
Paul/NNP
challenged/VBD
the/DT
regulators/NNS
'/POS
decision/NN
,/,
saying/VBG
the/DT
thrift/NN
's/POS
operating/NN
losses/NNS
and/CC
``/``
apparent/JJ
''/''
junk-bond/NN
losses/NNS
``/``
have/VBP
been/VBN
substantially/RB
offset/VBN
by/IN
gains/NNS
in/IN
other/JJ
activities/NNS
of/IN
the/DT
bank/NN
./.
''/''
He/PRP
also/RB
said/VBD
substantial/JJ
reserves/NNS
have/VBP
been/VBN
set/VBN
aside/RP
for/IN
possible/JJ
losses/NNS
from/IN
the/DT
junk/NN
bonds/NNS
./.
In/IN
the/DT
third/JJ
quarter/NN
,/,
for/IN
instance/NN
,/,
CenTrust/NNP
added/VBD
$/$
22.5/CD
million/CD
to/TO
its/PRP$
general/JJ
reserves/NNS
./.
Mr./NNP
Paul/NNP
said/VBD
the/DT
regulators/NNS
should/MD
instead/RB
move/VB
ahead/RB
with/IN
approving/VBG
CenTrust/NNP
's/POS
request/NN
to/TO
sell/VB
63/CD
of/IN
its/PRP$
71/CD
branches/NNS
to/TO
Great/NNP
Western/NNP
Bank/NNP
,/,
a/DT
unit/NN
of/IN
Great/NNP
Western/NNP
Financial/NNP
Corp./NNP
based/VBN
in/IN
Beverly/NNP
Hills/NNP
,/,
Calif/NNP
./.
The/DT
branch/NN
sale/NN
is/VBZ
the/DT
centerpiece/NN
of/IN
CenTrust/NNP
's/POS
strategy/NN
to/TO
transform/VB
itself/PRP
into/IN
a/DT
traditional/JJ
S&L/NN
from/IN
a/DT
high-flying/JJ
institution/NN
that/WDT
relied/VBD
heavily/RB
on/IN
securities/NNS
trading/NN
for/IN
profits/NNS
,/,
according/VBG
to/TO
Mr./NNP
Paul/NNP
./.
Most/JJS
analysts/NNS
and/CC
thrift/NN
executives/NNS
had/VBD
expected/VBN
a/DT
decision/NN
on/IN
the/DT
proposed/JJ
transaction/NN
,/,
which/WDT
was/VBD
announced/VBN
in/IN
July/NNP
,/,
long/RB
before/IN
now/RB
./.
Many/JJ
interpret/VBP
the/DT
delay/NN
as/IN
an/DT
indication/NN
that/IN
regulators/NNS
are/VBP
skeptical/JJ
about/IN
the/DT
proposal/NN
./.
Branches/NNS
and/CC
deposits/NNS
can/MD
be/VB
sold/VBN
at/IN
a/DT
premium/NN
in/IN
the/DT
event/NN
federal/JJ
regulators/NNS
take/VBP
over/RP
an/DT
institution/NN
./.
CenTrust/NNP
,/,
however/RB
,/,
touts/VBZ
the/DT
branch/NN
sale/NN
,/,
saying/VBG
it/PRP
would/MD
bring/VB
in/RP
$/$
150/CD
million/CD
and/CC
reduce/VB
the/DT
thrift/NN
's/POS
assets/NNS
to/TO
$/$
6.7/CD
billion/CD
from/IN
$/$
9/CD
billion/CD
./.
It/PRP
said/VBD
the/DT
sale/NN
would/MD
give/VB
it/PRP
positive/JJ
tangible/JJ
capital/NN
of/IN
$/$
82/CD
million/CD
,/,
or/CC
about/RB
1.2/CD
%/NN
of/IN
assets/NNS
,/,
from/IN
a/DT
negative/JJ
$/$
33/CD
million/CD
as/IN
of/IN
Sept./NNP
30/CD
,/,
thus/RB
bringing/VBG
CenTrust/NNP
close/RB
to/TO
regulatory/JJ
standards/NNS
./.
CenTrust/NNP
said/VBD
the/DT
branch/NN
sale/NN
would/MD
also/RB
reduce/VB
the/DT
company/NN
's/POS
large/JJ
amount/NN
of/IN
good/JJ
will/NN
by/IN
about/RB
$/$
180/CD
million/CD
./.
Critics/NNS
,/,
however/RB
,/,
say/VBP
the/DT
branch/NN
sale/NN
will/MD
make/VB
CenTrust/NNP
more/RBR
dependent/JJ
than/IN
ever/RB
on/IN
brokered/JJ
deposits/NNS
and/CC
junk/NN
bonds/NNS
./.
Mr./NNP
Paul/NNP
counters/NNS
that/IN
he/PRP
intends/VBZ
to/TO
further/RB
pare/VB
the/DT
size/NN
of/IN
CenTrust/NNP
by/IN
not/RB
renewing/VBG
more/JJR
than/IN
$/$
1/CD
billion/CD
of/IN
brokered/JJ
certificates/NNS
of/IN
deposit/NN
when/WRB
they/PRP
come/VBP
due/JJ
./.
The/DT
thrift/NN
is/VBZ
also/RB
working/VBG
to/TO
unload/VB
its/PRP$
junk-bond/JJ
portfolio/NN
by/IN
continuing/VBG
to/TO
sell/VB
off/RP
the/DT
bonds/NNS
,/,
and/CC
it/PRP
plans/VBZ
to/TO
eventually/RB
place/VB
some/DT
of/IN
them/PRP
in/IN
a/DT
separate/JJ
affiliate/NN
,/,
as/IN
required/VBN
under/IN
the/DT
new/JJ
thrift/NN
law/NN
./.
On/IN
a/DT
recent/JJ
Saturday/NNP
night/NN
,/,
in/IN
the/DT
midst/NN
of/IN
West/NNP
Germany/NNP
's/POS
most/JJS
popular/JJ
prime-time/NN
show/NN
,/,
a/DT
contestant/NN
bet/VBD
the/DT
host/NN
that/IN
she/PRP
could/MD
name/VB
any/DT
of/IN
100/CD
different/JJ
cheeses/NNS
after/IN
just/RB
one/CD
nibble/NN
,/,
while/IN
blindfolded/JJ
./.
The/DT
woman/NN
won/VBD
the/DT
bet/NN
./.
But/CC
perhaps/RB
even/RB
more/RBR
remarkable/JJ
,/,
the/DT
three-hour-show/NN
,/,
``/``
Wetten/FW
Dass/FW
''/''
(/(
Make/NNP
a/DT
Bet/NNP
the/DT
top/JJ
slot/NN
in/IN
the/DT
country/NN
's/POS
TV/NN
ratings/NNS
,/,
sometimes/RB
drawing/VBG
as/RB
many/JJ
as/IN
50/CD
%/NN
of/IN
West/JJ
German/JJ
households/NNS
./.
As/IN
the/DT
1992/CD
economic/JJ
integration/NN
approaches/NNS
,/,
Europe/NNP
's/POS
cultural/JJ
curators/NNS
have/VBP
taken/VBN
to/TO
the/DT
ramparts/NNS
against/IN
American/JJ
``/``
cultural/JJ
imperialism/NN
,/,
''/''
threatening/VBG
to/TO
impose/VB
quotas/NNS
against/IN
such/JJ
pop/JJ
invaders/NNS
as/IN
``/``
Dallas/NNP
,/,
''/''
``/``
Miami/NNP
Vice/NNP
''/''
and/CC
``/``
L.A./NNP
Law/NNP
./.
''/''
But/CC
much/JJ
of/IN
what/WP
the/DT
Europeans/NNPS
want/VBP
to/TO
protect/VB
seems/VBZ
every/DT
bit/NN
as/RB
cheesy/JJ
as/IN
what/WP
they/PRP
are/VBP
trying/VBG
to/TO
keep/VB
out/RP
./.
The/DT
most/RBS
militant/JJ
opposition/NN
to/TO
American/JJ
TV/NN
imports/NNS
has/VBZ
come/VBN
from/IN
French/JJ
television/NN
and/CC
movie/NN
producers/NNS
,/,
who/WP
have/VBP
demanded/VBN
quotas/NNS
ensuring/VBG
that/IN
a/DT
full/JJ
60/CD
%/NN
of/IN
Europe/NNP
's/POS
TV/NN
shows/NNS
be/VB
produced/VBN
in/IN
Europe/NNP
./.
So/RB
far/RB
,/,
the/DT
French/NNPS
have/VBP
failed/VBN
to/TO
win/VB
enough/JJ
broad-based/JJ
support/NN
to/TO
prevail/VB
./.
A/DT
glance/NN
through/IN
the/DT
television/NN
listings/NNS
and/CC
a/DT
few/JJ
twists/NNS
of/IN
the/DT
European/JJ
television/NN
dial/NN
suggest/VBP
one/CD
reason/NN
why/WRB
./.
While/IN
there/EX
are/VBP
some/DT
popular/JJ
action/NN
and/CC
drama/NN
series/NN
,/,
few/JJ
boast/VBP
the/DT
high/JJ
culture/NN
and/CC
classy/JJ
production/NN
values/VBZ
one/PRP
might/MD
expect/VB
./.
More/JJR
European/JJ
air/NN
time/NN
is/VBZ
filled/VBN
with/IN
low-budget/JJ
game/NN
shows/NNS
,/,
variety/NN
hours/NNS
,/,
movies/NNS
and/CC
talk/NN
shows/NNS
,/,
many/JJ
of/IN
which/WDT
are/VBP
authorized/VBN
knock-offs/JJ
of/IN
their/PRP$
American/NNP
counterparts/NNS
./.
One/CD
of/IN
France/NNP
's/POS
most/RBS
popular/JJ
Saturday/NNP
night/NN
programs/NNS
features/VBZ
semi-celebrities/NNS
seeking/VBG
out/RP
their/PRP$
grammar-school/NN
classmates/NNS
for/IN
on-air/JJ
reunions/NNS
./.
A/DT
Flemish/JJ
game/NN
show/NN
has/VBZ
as/RB
its/PRP$
host/NN
a/DT
Belgian/NNP
pretending/VBG
to/TO
be/VB
Italian/JJ
./.
One/CD
of/IN
Italy/NNP
's/POS
favorite/JJ
shows/NNS
,/,
``/``
Fantastico/NNP
,/,
''/''
a/DT
tepid/JJ
variety/NN
show/NN
,/,
is/VBZ
so/RB
popular/JJ
that/IN
viewers/NNS
clamored/VBD
to/TO
buy/VB
a/DT
chocolate/NN
product/NN
,/,
``/``
Cacao/NNP
Fantastico/NNP
,/,
''/''
whose/WP$
praises/NNS
were/VBD
sung/VBN
each/DT
week/NN
by/IN
dancing/VBG
showgirls/NNS
--/:
even/RB
though/IN
the/DT
product/NN
did/VBD
n't/RB
exist/VB
./.
Topping/VBG
the/DT
cheese/NN
stunt/NN
,/,
on/IN
another/DT
typical/JJ
evening/NN
of/IN
fun/NN
on/IN
``/``
Wetten/FW
Dass/FW
,/,
''/''
a/DT
contestant/NN
won/VBD
a/DT
bet/NN
with/IN
the/DT
show/NN
's/POS
host/NN
,/,
Thomas/NNP
Gottschalk/NNP
,/,
that/IN
he/PRP
could/MD
identify/VB
300/CD
German/JJ
dialects/NNS
over/IN
the/DT
telephone/NN
./.
A/DT
celebrity/NN
guest/NN
,/,
U.S./NNP
Ambassador/NNP
to/TO
West/NNP
Germany/NNP
Richard/NNP
Burt/NNP
,/,
also/RB
won/VBD
a/DT
bet/NN
that/IN
someone/NN
could/MD
pile/VB
up/RP
$/$
150/CD
worth/NN
of/IN
quarters/NNS
on/IN
a/DT
slanted/JJ
coin/NN
./.
Mr./NNP
Burt/NNP
nonetheless/RB
paid/VBD
the/DT
penalty/NN
as/IN
if/IN
he/PRP
had/VBD
lost/VBN
,/,
agreeing/VBG
to/TO
spend/VB
a/DT
day/NN
with/IN
West/NNP
German/NNP
Foreign/NNP
Minister/NNP
Hans-Dietrich/NNP
Genscher/NNP
frying/VBG
and/CC
selling/VBG
their/PRP$
combined/JJ
weight/NN
in/IN
potato/NN
pancakes/NNS
./.
If/IN
this/DT
seems/VBZ
like/IN
pretty/RB
weak/JJ
stuff/NN
around/IN
which/WDT
to/TO
raise/VB
the/DT
protectionist/JJ
barriers/NNS
,/,
it/PRP
may/MD
be/VB
because/IN
these/DT
shows/NNS
need/VBP
all/PDT
the/DT
protection/NN
they/PRP
can/MD
get/VB
./.
European/JJ
programs/NNS
usually/RB
target/VBP
only/RB
their/PRP$
own/JJ
local/JJ
audience/NN
,/,
and/CC
often/RB
only/RB
a/DT
small/JJ
portion/NN
of/IN
that/DT
./.
Mega-hits/NNS
in/IN
Germany/NNP
or/CC
Italy/NNP
rarely/RB
make/VBP
it/PRP
even/RB
to/TO
France/NNP
or/CC
Great/NNP
Britain/NNP
,/,
and/CC
almost/RB
never/RB
show/VBP
up/RP
on/IN
U.S./NNP
screens/NNS
./.
Attempts/NNS
to/TO
produce/VB
``/``
pan-European/JJ
''/''
programs/NNS
have/VBP
generally/RB
resulted/VBN
in/IN
disappointment/NN
./.
One/CD
annual/JJ
co-production/NN
,/,
the/DT
three-hour-long/JJ
``/``
Eurovision/NNP
Song/NNP
Contest/NNP
,/,
''/''
featuring/VBG
soft-rock/JJ
songs/NNS
from/IN
each/DT
of/IN
20/CD
European/JJ
countries/NNS
,/,
has/VBZ
been/VBN
described/VBN
as/IN
the/DT
world/NN
's/VBZ
most/RBS
boring/JJ
TV/NN
show/NN
./.
Another/DT
,/,
``/``
Jeux/FW
Sans/FW
Frontieres/FW
,/,
''/''
where/WRB
villagers/NNS
from/IN
assorted/JJ
European/JJ
countries/NNS
make/VBP
fools/NNS
of/IN
themselves/PRP
performing/VBG
pointless/JJ
tasks/NNS
,/,
is/VBZ
a/DT
hit/NN
in/IN
France/NNP
./.
A/DT
U.S.-made/JJ
imitation/NN
under/IN
the/DT
title/NN
``/``
Almost/NNP
Anything/NNP
Goes/NNP
''/''
flopped/VBD
fast/RB
./.
For/IN
the/DT
most/JJS
part/NN
,/,
what/WP
's/VBZ
made/VBN
here/RB
stays/VBZ
here/RB
,/,
and/CC
for/IN
good/JJ
reason/NN
./.
The/DT
cream/NN
of/IN
the/DT
British/JJ
crop/NN
,/,
the/DT
literary/JJ
dramas/NN
that/WDT
are/VBP
shown/VBN
on/IN
U.S./NNP
public/JJ
television/NN
as/IN
``/``
Masterpiece/NNP
Theater/NNP
,/,
''/''
make/VBP
up/RP
a/DT
relatively/RB
small/JJ
part/NN
of/IN
British/JJ
air/NN
time/NN
./.
Most/JJS
British/JJ
programming/NN
is/VBZ
more/JJR
of/IN
an/DT
acquired/JJ
taste/NN
./.
There/EX
is/VBZ
,/,
for/IN
instance/NN
,/,
``/``
One/CD
Man/NN
and/CC
His/PRP$
Dog/NNP
,/,
''/''
a/DT
herding/NN
contest/NN
among/IN
sheep/NN
dogs/NNS
./.
Also/RB
riveting/JJ
to/TO
the/DT
British/NNPS
are/VBP
hours/NNS
of/IN
dart-throwing/NN
championships/NNS
,/,
even/RB
more/JJR
hours/NNS
of/IN
lawn/NN
bowling/NN
contests/NNS
and/CC
still/RB
more/JJR
hours/NNS
of/IN
snooker/NN
marathons/NNS
./.
European/JJ
drama/NN
has/VBZ
had/VBN
better/JJR
,/,
though/IN
still/RB
mixed/JJ
,/,
fortunes/NNS
./.
The/DT
most/RBS
popular/JJ
such/JJ
shows/NNS
focus/VBP
on/IN
narrow/JJ
national/JJ
concerns/NNS
./.
A/DT
French/JJ
knock-off/NN
of/IN
``/``
Dallas/NNP
,/,
''/''
called/VBN
``/``
Chateauvallon/NNP
''/''
and/CC
set/VBN
in/IN
a/DT
French/JJ
vineyard/NN
,/,
had/VBD
a/DT
good/JJ
run/NN
in/IN
France/NNP
,/,
which/WDT
ended/VBD
after/IN
the/DT
female/JJ
lead/NN
was/VBD
injured/VBN
in/IN
a/DT
real-life/JJ
auto/NN
accident/NN
./.
``/``
Schwarzwaldklinik/NNP
,/,
''/''
(/(
Black/NNP
Forest/NNP
Clinic/NNP
a/DT
kind/NN
of/IN
German/NNP
``/``
St/NNP
./.
Elsewhere/NNP
''/''
set/VBN
in/IN
a/DT
health/NN
spa/NN
,/,
is/VBZ
popular/JJ
in/IN
Germany/NNP
,/,
and/CC
has/VBZ
spread/VBN
into/IN
France/NNP
./.
Italy/NNP
's/POS
most/RBS
popular/JJ
series/NN
is/VBZ
a/DT
drama/NN
called/VBN
``/``
La/FW
Piovra/FW
,/,
''/''
or/CC
``/``
The/NNP
Octopus/NNP
,/,
''/''
which/WDT
chronicles/VBZ
the/DT
fight/NN
of/IN
an/DT
idealistic/JJ
young/JJ
investigator/NN
in/IN
Palermo/NNP
against/IN
the/DT
Mafia/NNP
./.
It/PRP
was/VBD
front-page/JJ
news/NN
in/IN
Italy/NNP
earlier/RBR
this/DT
year/NN
when/WRB
the/DT
fictional/JJ
inspector/NN
was/VBD
gunned/VBN
down/RP
in/IN
the/DT
series/NN
./.
Spain/NNP
's/POS
most/RBS
popular/JJ
mini-series/NN
this/DT
year/NN
was/VBD
``/``
Juncal/NNP
,/,
''/''
the/DT
story/NN
of/IN
an/DT
aging/VBG
bullfighter/NN
./.
``/``
The/DT
trend/NN
is/VBZ
pretty/RB
well/RB
established/VBN
now/RB
that/IN
local/JJ
programs/NNS
are/VBP
the/DT
most/RBS
popular/JJ
,/,
with/IN
American/JJ
programs/NNS
second/JJ
,/,
''/''
says/VBZ
Brian/NNP
Wenham/NNP
,/,
a/DT
former/JJ
director/NN
of/IN
programs/NNS
for/IN
the/DT
British/NNP
Broadcasting/NNP
Corp/NNP
./.
``/``
Given/VBN
a/DT
choice/NN
,/,
everybody/NN
will/MD
watch/VB
a/DT
home-produced/JJ
show/NN
./.
''/''
But/CC
frequently/RB
there/EX
is/VBZ
n't/RB
much/JJ
choice/JJ
./.
Thus/RB
,/,
Europe/NNP
has/VBZ
begun/VBN
the/DT
recent/JJ
crusade/NN
to/TO
produce/VB
more/JJR|RBR
worthy/JJ
shows/NNS
of/IN
its/PRP$
own/JJ
,/,
programs/NNS
with/IN
broader/JJR
appeal/NN
./.
``/``
We/PRP
've/VBP
basically/RB
got/VBD
to/TO
start/VB
from/IN
scratch/NN
,/,
to/TO
train/VB
writers/NNS
and/CC
producers/NNS
to/TO
make/VB
shows/VBZ
that/IN
other/JJ
people/NNS
will/MD
want/VB
to/TO
see/VB
,/,
''/''
concedes/VBZ
Colin/NNP
Young/NNP
,/,
head/NN
of/IN
Britain/NNP
's/POS
National/NNP
Film/NNP
Theatre/NNP
School/NNP
./.
While/IN
some/DT
in/IN
the/DT
U.S./NNP
contend/VBP
that/DT
advertising/NN
is/VBZ
the/DT
bane/NN
of/IN
television/NN
,/,
here/RB
many/JJ
believe/VBP
that/DT
its/PRP$
absence/NN
is/VBZ
to/TO
blame/VB
for/IN
the/DT
European/JJ
TV/NN
industry/NN
's/POS
sluggish/JJ
development/NN
./.
Until/IN
recently/RB
,/,
national/JJ
governments/NNS
in/IN
Europe/NNP
controlled/VBD
most/JJS
of/IN
the/DT
air/NN
time/NN
and/CC
allowed/VBD
little/JJ
or/CC
no/DT
advertising/NN
./.
Since/IN
production/NN
costs/NNS
were/VBD
guaranteed/VBN
,/,
it/PRP
did/VBD
n't/RB
matter/NN
that/IN
a/DT
program/NN
could/MD
n't/RB
be/VB
sold/VBN
abroad/RB
or/CC
put/VB
into/IN
syndication/NN
,/,
as/IN
most/JJS
American/JJ
programs/NNS
are/VBP
./.
But/CC
not/RB
much/JJ
money/NN
was/VBD
spent/VBN
on/IN
the/DT
shows/NNS
,/,
either/RB
,/,
a/DT
situation/NN
that/WDT
encouraged/VBD
cheap-to-make/JJ
talk/NN
and/CC
game/NN
shows/NNS
,/,
while/IN
discouraging/VBG
expensive-to-produce/JJ
dramas/NN
./.
Now/RB
,/,
however/RB
,/,
commercial/JJ
channels/NNS
are/VBP
coming/VBG
to/TO
most/JJS
European/JJ
countries/NNS
,/,
and/CC
at/IN
the/DT
same/JJ
time/NN
,/,
satellite/NN
and/CC
cable/NN
technology/NN
is/VBZ
spreading/VBG
rapidly/RB
./.
Just/RB
last/JJ
week/NN
,/,
Greece/NNP
authorized/VBD
two/CD
commercial/JJ
channels/NNS
for/IN
the/DT
first/JJ
time/NN
;/:
Spain/NNP
earlier/RBR
began/VBD
to/TO
allow/VB
commercial/JJ
television/NN
alongside/IN
its/PRP$
state/NN
channels/NNS
./.
The/DT
result/NN
is/VBZ
a/DT
new/JJ
and/CC
huge/JJ
appetite/NN
for/IN
programming/NN
./.
But/CC
perhaps/RB
to/TO
the/DT
consternation/NN
of/IN
those/DT
calling/VBG
for/IN
quotas/NNS
,/,
most/JJS
of/IN
this/DT
void/NN
is/VBZ
likely/JJ
to/TO
be/VB
filled/VBN
with/IN
the/DT
cheapest/JJS
and/CC
most/RBS
plentiful/JJ
programming/NN
now/RB
available/JJ
--/:
reruns/NNS
--/:
usually/RB
of/IN
shows/NNS
made/VBN
in/IN
the/DT
U.S/NNP
./.
Sky/NNP
Channel/NNP
,/,
a/DT
British-based/JJ
venture/NN
of/IN
Australian-American/JJ
press/NN
tycoon/NN
Rupert/NNP
Murdoch/NNP
,/,
offers/VBZ
what/WP
must/MD
be/VB
a/DT
baffling/JJ
cultural/JJ
mix/NN
to/TO
most/JJS
of/IN
its/PRP$
audience/NN
./.
The/DT
financially/RB
struggling/VBG
station/NN
offers/VBZ
programs/NNS
obviously/RB
made/VBN
available/JJ
cheaply/RB
from/IN
its/PRP$
boss/NN
's/POS
other/JJ
ventures/NNS
./.
In/IN
a/DT
Madrid/NNP
hotel/NN
room/NN
recently/RB
,/,
a/DT
viewer/NN
caught/VBD
the/DT
end/NN
of/IN
a/DT
badly/RB
acted/VBN
series/NN
about/IN
a/DT
fishing/NN
boat/NN
on/IN
Australia/NNP
's/POS
Great/NNP
Barrier/NNP
Reef/NNP
,/,
only/RB
to/TO
be/VB
urged/VBN
by/IN
the/DT
British/JJ
announcer/NN
to/TO
``/``
stay/VB
tuned/VBN
for/IN
the/DT
further/JJ
adventures/NNS
of/IN
Skippy/NNP
the/DT
Kangaroo/NNP
./.
''/''
Lisa/NNP
Grishaw-Mueller/NNP
in/IN
Bonn/NNP
,/,
Laura/NNP
Colby/NNP
in/IN
Milan/NNP
,/,
Tim/NNP
Carrington/NNP
in/IN
London/NNP
and/CC
Carlta/NNP
Vitzhum/NNP
in/IN
Madrid/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
British/NNP
Aerospace/NNP
PLC/NNP
and/CC
France/NNP
's/POS
Thomson-CSF/NNP
S.A./NNP
said/VBD
they/PRP
are/VBP
nearing/VBG
an/DT
agreement/NN
to/TO
merge/VB
their/PRP$
guided-missile/NN
divisions/NNS
,/,
greatly/RB
expanding/VBG
collaboration/NN
between/IN
the/DT
two/CD
defense/NN
contractors/NNS
./.
The/DT
50-50/JJ
joint/JJ
venture/NN
,/,
which/WDT
may/MD
be/VB
dubbed/VBN
Eurodynamics/NNPS
,/,
would/MD
have/VB
combined/JJ
annual/JJ
sales/NNS
of/IN
at/IN
least/JJS
#/#
1.4/CD
billion/CD
$/$
2.17/CD
billion/CD
the/DT
world/NN
's/POS
largest/JJS
missile/NN
makers/NNS
./.
After/IN
two/CD
years/NNS
of/IN
talks/NNS
,/,
plans/NNS
for/IN
the/DT
venture/NN
are/VBP
sufficiently/RB
advanced/JJ
for/IN
the/DT
companies/NNS
to/TO
seek/VB
French/JJ
and/CC
British/JJ
government/NN
clearance/NN
./.
The/DT
companies/NNS
hope/VBP
for/IN
a/DT
final/JJ
agreement/NN
by/IN
year-end/NN
./.
The/DT
venture/NN
would/MD
strengthen/VB
the/DT
rapidly/RB
growing/VBG
ties/NNS
between/IN
the/DT
two/CD
companies/NNS
,/,
and/CC
help/VB
make/VB
them/PRP
a/DT
leading/JJ
force/NN
in/IN
European/JJ
defense/NN
contracting/NN
./.
In/IN
recent/JJ
months/NNS
,/,
a/DT
string/NN
of/IN
cross-border/JJ
mergers/NNS
and/CC
joint/JJ
ventures/NNS
have/VBP
reshaped/VBN
the/DT
once-balkanized/JJ
world/NN
of/IN
European/JJ
arms/NNS
manufacture/NN
./.
Already/RB
,/,
British/NNP
Aerospace/NNP
and/CC
French/JJ
government-controlled/JJ
Thomson-CSF/NNP
collaborate/VBP
on/IN
a/DT
British/JJ
missile/NN
contract/NN
and/CC
on/IN
an/DT
air-traffic/NN
control/NN
radar/NN
system/NN
./.
Just/RB
last/JJ
week/NN
they/PRP
announced/VBD
they/PRP
may/MD
make/VB
a/DT
joint/JJ
bid/NN
to/TO
buy/VB
Ferranti/NNP
International/NNP
Signal/NNP
PLC/NNP
,/,
a/DT
smaller/JJR
British/JJ
defense/NN
contractor/NN
rocked/VBN
by/IN
alleged/JJ
accounting/NN
fraud/NN
at/IN
a/DT
U.S./NNP
unit/NN
./.
The/DT
sudden/JJ
romance/NN
of/IN
British/NNP
Aerospace/NNP
and/CC
Thomson-CSF/NNP
--/:
traditionally/RB
bitter/JJ
competitors/NNS
for/IN
Middle/NNP
East/NNP
and/CC
Third/NNP
World/NNP
weapons/NNS
contracts/NNS
--/:
is/VBZ
stirring/VBG
controversy/NN
in/IN
Western/NNP
Europe/NNP
's/POS
defense/NN
industry/NN
./.
Most/RBS
threatened/VBN
by/IN
closer/JJR
British/NNP
Aerospace-Thomson/NNP
ties/NNS
would/MD
be/VB
their/PRP$
respective/JJ
national/JJ
rivals/NNS
,/,
including/VBG
Matra/NNP
S.A./NNP
in/IN
France/NNP
and/CC
Britain/NNP
's/POS
General/NNP
Electric/NNP
Co./NNP
PLC/NNP
./.
But/CC
neither/CC
Matra/NNP
nor/CC
GEC/NNP
--/:
unrelated/JJ
to/TO
Stamford/NNP
,/,
Conn.-based/JJ
General/NNP
Electric/NNP
Co./NNP
--/:
are/VBP
sitting/VBG
quietly/RB
by/RB
as/RB
their/PRP$
competitors/NNS
join/VBP
forces/NNS
./.
Yesterday/NN
,/,
a/DT
source/NN
close/RB
to/TO
GEC/NNP
confirmed/VBD
that/IN
his/PRP$
company/NN
may/MD
join/VB
the/DT
Ferranti/NNP
fight/NN
,/,
as/IN
part/NN
of/IN
a/DT
possible/JJ
consortium/NN
that/WDT
would/MD
bid/VB
against/IN
British/NNP
Aerospace/NNP
and/CC
Thomson-CSF/NNP
./.
Companies/NNS
with/IN
which/WDT
GEC/NNP
has/VBZ
had/VBD
talks/NNS
about/IN
a/DT
possible/JJ
joint/JJ
Ferranti/NNP
bid/NN
include/VBP
Matra/NNP
,/,
Britain/NNP
's/POS
Dowty/NNP
Group/NNP
PLC/NNP
,/,
West/NNP
Germany/NNP
's/POS
Daimler-Benz/NNP
AG/NNP
,/,
and/CC
France/NNP
's/POS
Dassault/NNP
group/NN
./.
But/CC
it/PRP
may/MD
be/VB
weeks/NNS
before/IN
GEC/NNP
and/CC
its/PRP$
potential/JJ
partners/NNS
decide/VBP
whether/IN
to/TO
bid/VB
,/,
the/DT
source/NN
indicated/VBD
./.
GEC/NNP
plans/VBZ
first/RB
to/TO
study/VB
Ferranti/NNP
's/POS
financial/JJ
accounts/NNS
,/,
which/WDT
auditors/NNS
recently/RB
said/VBD
included/VBD
#/#
215/CD
million/CD
in/IN
fictitious/JJ
contracts/NNS
at/IN
a/DT
U.S./NNP
unit/NN
,/,
International/NNP
Signal/NNP
&/CC
Control/NNP
Group/NNP
,/,
with/IN
which/WDT
Ferranti/NNP
merged/VBD
last/JJ
year/NN
./.
Also/RB
,/,
any/DT
GEC/NNP
bid/NN
might/MD
be/VB
blocked/VBN
by/IN
British/JJ
antitrust/JJ
regulators/NNS
;/:
Ferranti/NNP
is/VBZ
GEC/NNP
's/POS
main/JJ
competitor/NN
on/IN
several/JJ
key/JJ
defense-electronics/JJ
contracts/NNS
,/,
and/CC
its/PRP$
purchase/NN
by/IN
GEC/NNP
may/MD
heighten/VB
British/NNP
Defense/NNP
Ministry/NNP
worries/NNS
about/IN
concentration/NN
in/IN
the/DT
country/NN
's/POS
defense/NN
industry/NN
./.
A/DT
consortium/NN
bid/NN
,/,
however/RB
,/,
would/MD
diminish/VB
GEC/NNP
's/POS
direct/JJ
role/NN
in/IN
Ferranti/NNP
and/CC
might/MD
consequently/RB
appease/VB
ministry/NN
officials/NNS
./.
A/DT
British/NNP
Aerospace/NNP
spokeswoman/NN
appeared/VBD
unperturbed/JJ
by/IN
the/DT
prospect/NN
of/IN
a/DT
fight/NN
with/IN
GEC/NNP
for/IN
Ferranti/NNP
:/:
``/``
Competition/NN
is/VBZ
the/DT
name/NN
of/IN
the/DT
game/NN
,/,
''/''
she/PRP
said/VBD
./.
At/IN
least/JJS
one/CD
potential/JJ
GEC/NNP
partner/NN
,/,
Matra/NNP
,/,
insists/VBZ
it/PRP
is/VBZ
n't/RB
interested/JJ
in/IN
Ferranti/NNP
./.
``/``
We/PRP
have/VBP
nothing/NN
to/TO
say/VB
about/IN
this/DT
affair/NN
,/,
which/WDT
does/VBZ
n't/RB
concern/VB
us/PRP
,/,
''/''
a/DT
Matra/NNP
official/NN
said/VBD
Sunday/NNP
./.
The/DT
missile/NN
venture/NN
,/,
the/DT
British/NNP
Aerospace/NNP
spokeswoman/NN
said/VBD
,/,
is/VBZ
a/DT
needed/JJ
response/NN
to/TO
the/DT
``/``
new/JJ
environment/NN
''/''
in/IN
defense/NN
contracting/NN
./.
For/IN
both/DT
Thomson/NNP
and/CC
British/NNP
Aerospace/NNP
,/,
earnings/NNS
in/IN
their/PRP$
home/NN
markets/NNS
have/VBP
come/VBN
under/IN
pressure/NN
from/IN
increasingly/RB
tight-fisted/JJ
defense/NN
ministries/NNS
;/:
and/CC
Middle/NNP
East/NNP
sales/NNS
,/,
a/DT
traditional/JJ
mainstay/NN
for/IN
both/DT
companies/NNS
'/POS
exports/NNS
,/,
have/VBP
been/VBN
hurt/VBN
by/IN
five/CD
years/NNS
of/IN
weak/JJ
oil/NN
prices/NNS
./.
The/DT
venture/NN
's/POS
importance/NN
for/IN
Thomson/NNP
is/VBZ
great/JJ
./.
Thomson/NNP
feels/VBZ
the/DT
future/NN
of/IN
its/PRP$
defense/NN
business/NN
depends/VBZ
on/IN
building/VBG
cooperation/NN
with/IN
other/JJ
Europeans/NNPS
./.
The/DT
European/JJ
defense/NN
industry/NN
is/VBZ
consolidating/VBG
;/:
for/IN
instance/NN
,/,
West/NNP
Germany/NNP
's/POS
Siemens/NNP
AG/NNP
recently/RB
joined/VBD
GEC/NNP
in/IN
a/DT
takeover/NN
of/IN
Britain/NNP
's/POS
Plessey/NNP
Co./NNP
,/,
and/CC
Daimler-Benz/NNP
agreed/VBD
to/TO
buy/VB
Messerschmitt-Boelkow/NNP
Blohm/NNP
G.m.b/NNP
./.
H/NNP
./.
In/IN
missiles/NNS
,/,
Thomson/NNP
is/VBZ
already/RB
overshadowed/VBN
by/IN
British/NNP
Aerospace/NNP
and/CC
by/IN
its/PRP$
home/NN
rival/NN
,/,
France/NNP
's/POS
Aerospatiale/NNP
S.A./NNP
;/:
to/TO
better/RBR
compete/VB
,/,
Thomson/NNP
officials/NNS
say/VBP
,/,
they/PRP
need/VBP
a/DT
partnership/NN
./.
To/TO
justify/VB
50-50/JJ
ownership/NN
of/IN
the/DT
planned/JJ
venture/NN
,/,
Thomson/NNP
would/MD
make/VB
a/DT
cash/NN
payment/NN
to/TO
British/NNP
Aerospace/NNP
./.
Annual/JJ
revenue/NN
of/IN
British/NNP
Aerospace/NNP
's/POS
missile/NN
business/NN
is/VBZ
about/RB
#/#
950/CD
million/CD
,/,
a/DT
Thomson/NNP
spokesman/NN
said/VBD
./.
British/NNP
Aerospace/NNP
's/POS
chief/JJ
missile/NN
products/NNS
include/VBP
its/PRP$
17-year-old/JJ
family/NN
of/IN
Rapier/NN
surface-to-air/JJ
missiles/NNS
./.
Thomson/NNP
missile/NN
products/NNS
,/,
with/IN
about/RB
half/PDT
British/NNP
Aerospace/NNP
's/POS
annual/JJ
revenue/NN
,/,
include/VBP
the/DT
Crotale/JJ
surface-to-air/JJ
missile/NN
family/NN
./.
Interprovincial/NNP
Pipe/NNP
Line/NNP
Co./NNP
said/VBD
it/PRP
will/MD
delay/VB
a/DT
proposed/VBN
two-step/JJ
,/,
830/CD
million/CD
Canadian-dollar/JJ
US$/$
705.6/CD
million/CD
expansion/NN
of/IN
its/PRP$
system/NN
because/IN
Canada/NNP
's/POS
output/NN
of/IN
crude/JJ
oil/NN
is/VBZ
shrinking/VBG
./.
Interprovincial/NNP
,/,
Canada/NNP
's/POS
biggest/JJS
oil/NN
pipeline/NN
operator/NN
and/CC
a/DT
major/JJ
transporter/NN
of/IN
crude/NN
to/TO
the/DT
U.S./NNP
,/,
said/VBD
revised/VBN
industry/NN
forecasts/NNS
indicate/VBP
that/IN
Canadian/JJ
oil/NN
output/NN
will/MD
total/VB
about/RB
1.64/CD
million/CD
barrels/NNS
a/DT
day/NN
by/IN
1991/CD
,/,
8/CD
%/NN
lower/JJR
than/IN
a/DT
previous/JJ
estimate/NN
./.
Canadian/JJ
crude/NN
production/NN
averaged/VBD
about/RB
1.69/CD
million/CD
barrels/NNS
a/DT
day/NN
during/IN
1989/CD
's/POS
first/JJ
half/NN
,/,
about/RB
1/CD
%/NN
below/IN
the/DT
1988/CD
level/NN
./.
``/``
The/DT
capability/NN
of/IN
existing/JJ
fields/NNS
to/TO
deliver/VB
oil/NN
is/VBZ
dropping/VBG
,/,
''/''
and/CC
oil/NN
exploration/NN
activity/NN
is/VBZ
also/RB
down/RB
dramatically/RB
,/,
as/IN
many/JJ
producers/NNS
shift/VBP
their/PRP$
emphasis/NN
to/TO
natural/JJ
gas/NN
,/,
said/VBD
Ronald/NNP
Watkins/NNP
,/,
vice/NN
president/NN
for/IN
government/NN
and/CC
industry/NN
relations/NNS
with/IN
Interprovincial/NNP
's/POS
parent/NN
,/,
Interhome/NNP
Energy/NNP
Inc/NNP
./.
Mr./NNP
Watkins/NNP
said/VBD
volume/NN
on/IN
Interprovincial/NNP
's/POS
system/NN
is/VBZ
down/RB
about/RB
2/CD
%/NN
since/IN
January/NNP
and/CC
is/VBZ
expected/VBN
to/TO
fall/VB
further/RBR
,/,
making/VBG
expansion/NN
unnecessary/JJ
until/IN
perhaps/RB
the/DT
mid-1990s/NNS
./.
``/``
There/EX
has/VBZ
been/VBN
a/DT
swing/NN
of/IN
the/DT
pendulum/NN
back/RB
to/TO
the/DT
gas/NN
side/NN
,/,
''/''
he/PRP
said/VBD
./.
Many/JJ
of/IN
Canada/NNP
's/POS
oil/NN
and/CC
gas/NN
producers/NNS
say/VBP
the/DT
outlook/NN
for/IN
natural/JJ
gas/NN
is/VBZ
better/JJR
than/IN
it/PRP
is/VBZ
for/IN
oil/NN
,/,
and/CC
have/VBP
shifted/VBN
their/PRP$
exploration/NN
and/CC
development/NN
budgets/NNS
accordingly/RB
./.
The/DT
number/NN
of/IN
active/JJ
drilling/NN
rigs/NNS
in/IN
Canada/NNP
is/VBZ
down/RB
30/CD
%/NN
from/IN
a/DT
year/NN
ago/RB
,/,
and/CC
the/DT
number/NN
of/IN
completed/VBN
oil/NN
wells/NNS
is/VBZ
``/``
down/RB
more/JJR
than/IN
that/DT
,/,
due/JJ
to/TO
the/DT
increasing/VBG
focus/NN
on/IN
gas/NN
exploration/NN
,/,
''/''
said/VBD
Robert/NNP
Feick/NNP
,/,
manager/NN
of/IN
crude/JJ
oil/NN
with/IN
Calgary/NNP
's/POS
Independent/NNP
Petroleum/NNP
Association/NNP
of/IN
Canada/NNP
,/,
an/DT
industry/NN
group/NN
./.
Mr./NNP
Watkins/NNP
said/VBD
the/DT
main/JJ
reason/NN
for/IN
the/DT
production/NN
decline/NN
is/VBZ
shrinking/VBG
output/NN
of/IN
light/JJ
crude/NN
from/IN
mature/JJ
,/,
conventional/JJ
fields/NNS
in/IN
western/JJ
Canada/NNP
./.
Interprovincial/NNP
transports/VBZ
about/RB
75/CD
%/NN
of/IN
all/DT
crude/NN
produced/VBN
in/IN
western/JJ
Canada/NNP
,/,
and/CC
almost/RB
60/CD
%/NN
of/IN
Interprovincial/NNP
's/POS
total/JJ
volume/NN
consists/VBZ
of/IN
light/JJ
crude/NN
./.
Nearly/RB
all/DT
of/IN
the/DT
crude/JJ
oil/NN
that/IN
Canada/NNP
exports/NNS
to/TO
the/DT
U.S./NNP
is/VBZ
transported/VBN
on/IN
Interprovincial/NNP
's/POS
system/NN
,/,
whose/WP$
main/JJ
line/NN
runs/NNS
from/IN
Edmonton/NNP
to/TO
major/JJ
U.S./NNP
and/CC
Canadian/JJ
cities/NNS
in/IN
the/DT
Great/NNP
Lakes/NNPS
region/NN
,/,
including/VBG
Chicago/NNP
,/,
Buffalo/NNP
,/,
Toronto/NNP
and/CC
Montreal/NNP
./.
Canada/NNP
's/POS
current/JJ
oil/NN
exports/NNS
to/TO
the/DT
U.S./NNP
total/VBP
about/RB
600,000/CD
barrels/NNS
a/DT
day/NN
,/,
or/CC
about/RB
9.1/CD
%/NN
of/IN
net/JJ
U.S./NNP
crude/NN
imports/NNS
,/,
said/VBD
John/NNP
Lichtblau/NNP
,/,
president/NN
of/IN
the/DT
New/JJ
York-based/JJ
Petroleum/NNP
Industry/NNP
Research/NNP
Foundation/NNP
./.
That/DT
ranks/VBZ
Canada/NNP
as/IN
the/DT
fourth-largest/JJ
source/NN
of/IN
imported/JJ
crude/NN
,/,
behind/IN
Saudi/NNP
Arabia/NNP
,/,
Nigeria/NNP
and/CC
Mexico/NNP
./.
Mr./NNP
Lichtblau/NNP
said/VBD
Canada/NNP
's/POS
declining/VBG
crude/NN
output/NN
,/,
combined/VBN
with/IN
the/DT
fast-shrinking/JJ
output/NN
of/IN
U.S./NNP
crude/NN
,/,
will/MD
help/VB
intensify/VB
U.S./NNP
reliance/NN
on/IN
oil/NN
from/IN
overseas/NN
,/,
particularly/RB
the/DT
Middle/NNP
East/NNP
./.
``/``
It/PRP
's/VBZ
very/RB
much/RB
a/DT
growing/VBG
concern/NN
./.
But/CC
when/WRB
something/NN
is/VBZ
inevitable/JJ
,/,
you/PRP
learn/VBP
to/TO
live/VB
with/IN
it/PRP
,/,
''/''
he/PRP
said/VBD
./.
Mr./NNP
Lichtblau/NNP
stressed/VBD
that/IN
the/DT
delay/NN
of/IN
Interprovincial/NNP
's/POS
proposed/VBN
expansion/NN
wo/MD
n't/RB
by/IN
itself/PRP
increase/VB
U.S./NNP
dependence/NN
on/IN
offshore/JJ
crude/NN
,/,
however/RB
,/,
since/IN
Canadian/JJ
imports/NNS
are/VBP
limited/VBN
in/IN
any/DT
case/NN
by/IN
Canada/NNP
's/POS
falling/VBG
output/NN
./.
Under/IN
terms/NNS
of/IN
its/PRP$
proposed/VBN
two-step/JJ
expansion/NN
,/,
which/WDT
would/MD
have/VB
required/VBN
regulatory/JJ
approval/NN
,/,
Interprovincial/NNP
intended/VBD
to/TO
add/VB
200,000/CD
barrels/NNS
a/DT
day/NN
of/IN
additional/JJ
capacity/NN
to/TO
its/PRP$
system/NN
,/,
beginning/VBG
with/IN
a/DT
modest/JJ
expansion/NN
by/IN
1991/CD
./.
The/DT
system/NN
currently/RB
has/VBZ
a/DT
capacity/NN
of/IN
1.55/CD
million/CD
barrels/NNS
a/DT
day/NN
./.
Inland/NNP
Steel/NNP
Industries/NNP
Inc./NNP
expects/VBZ
to/TO
report/VB
that/IN
third-quarter/JJ
earnings/NNS
dropped/VBD
more/JJR|RBR
than/IN
50/CD
%/NN
from/IN
the/DT
previous/JJ
quarter/NN
as/IN
a/DT
result/NN
of/IN
reduced/JJ
sales/NNS
volume/NN
and/CC
increased/JJ
costs/NNS
./.
In/IN
the/DT
second/JJ
quarter/NN
,/,
the/DT
steelmaker/NN
had/VBD
net/JJ
income/NN
of/IN
$/$
45.3/CD
million/CD
or/CC
$/$
1.25/CD
a/DT
share/NN
,/,
including/VBG
a/DT
pretax/JJ
charge/NN
of/IN
$/$
17/CD
million/CD
related/VBN
to/TO
the/DT
settlement/NN
of/IN
a/DT
suit/NN
,/,
on/IN
sales/NNS
of/IN
$/$
1.11/CD
billion/CD
./.
The/DT
company/NN
said/VBD
normal/JJ
seasonal/JJ
softness/NN
and/CC
lost/JJ
orders/NNS
caused/VBN
by/IN
prolonged/JJ
labor/NN
talks/NNS
reduced/VBD
shipments/NNS
by/IN
200,000/CD
tons/NNS
in/IN
the/DT
latest/JJS
quarter/NN
,/,
compared/VBN
with/IN
the/DT
second/JJ
quarter/NN
./.
At/IN
the/DT
same/JJ
time/NN
,/,
the/DT
integrated-steel/NN
business/NN
was/VBD
hurt/VBN
by/IN
continued/JJ
increases/NNS
in/IN
materials/NNS
costs/NNS
and/CC
repair/NN
and/CC
maintenance/NN
expenses/NNS
,/,
as/RB
well/RB
as/IN
higher/JJR
labor/NN
costs/NNS
under/IN
its/PRP$
new/JJ
contract/NN
./.
The/DT
service-center/NN
business/NN
was/VBD
hurt/VBN
by/IN
reduced/JJ
margins/NNS
and/CC
start-up/JJ
costs/NNS
associated/VBN
with/IN
its/PRP$
Joseph/NNP
T./NNP
Ryerson/NNP
&/CC
Son/NNP
unit/NN
./.
The/DT
company/NN
said/VBD
it/PRP
is/VBZ
beginning/VBG
to/TO
see/VB
some/DT
shipping-rate/JJ
improvements/NNS
in/IN
both/CC
the/DT
intergrated-steel/NN
and/CC
steel-service-center/NN
segments/NNS
,/,
which/WDT
should/MD
result/VB
in/IN
improved/JJ
results/NNS
for/IN
the/DT
fourth/JJ
quarter/NN
./.
Inland/NNP
said/VBD
its/PRP$
third-quarter/JJ
results/NNS
will/MD
be/VB
announced/VBN
later/RB
this/DT
week/NN
./.
In/IN
the/DT
year-earlier/JJ
third/JJ
quarter/NN
,/,
when/WRB
the/DT
industry/NN
was/VBD
in/IN
the/DT
midst/NN
of/IN
a/DT
boom/NN
,/,
the/DT
company/NN
had/VBD
net/NN
of/IN
$/$
61/CD
million/CD
,/,
or/CC
$/$
1.70/CD
a/DT
share/NN
,/,
on/IN
sales/NNS
of/IN
$/$
1.02/CD
billion/CD
./.
Predicting/VBG
the/DT
financial/JJ
results/NNS
of/IN
computer/NN
firms/NNS
has/VBZ
been/VBN
a/DT
tough/JJ
job/NN
lately/RB
./.
Take/VB
Microsoft/NNP
Corp./NNP
,/,
the/DT
largest/JJS
maker/NN
of/IN
personal/JJ
computer/NN
software/NN
and/CC
generally/RB
considered/VBN
an/DT
industry/NN
bellwether/NN
./.
In/IN
July/NNP
,/,
the/DT
company/NN
stunned/VBD
Wall/NNP
Street/NNP
with/IN
the/DT
prediction/NN
that/DT
growth/NN
in/IN
the/DT
personal/JJ
computer/NN
business/NN
overall/RB
would/MD
be/VB
only/RB
10/CD
%/NN
in/IN
1990/CD
,/,
a/DT
modest/JJ
increase/NN
when/WRB
compared/VBN
with/IN
the/DT
sizzling/JJ
expansion/NN
of/IN
years/NNS
past/JJ
./.
Investors/NNS
--/:
taking/VBG
this/DT
as/IN
a/DT
sign/NN
that/IN
a/DT
broad/JJ
industry/NN
slump/NN
was/VBD
in/IN
the/DT
offing/NN
--/:
reacted/VBD
by/IN
selling/VBG
the/DT
company/NN
's/POS
stock/NN
,/,
which/WDT
lost/VBD
$/$
3.25/CD
that/DT
day/NN
to/TO
close/VB
at/IN
$/$
52/CD
in/IN
national/JJ
over-the-counter/JJ
trading/NN
./.
But/CC
that/DT
was/VBD
all/DT
of/IN
three/CD
months/NNS
ago/RB
./.
Last/JJ
week/NN
,/,
Microsoft/NNP
said/VBD
it/PRP
expects/VBZ
revenue/NN
for/IN
its/PRP$
first/JJ
quarter/NN
ended/VBN
Sept./NNP
30/CD
to/TO
increase/VB
34/CD
%/NN
./.
The/DT
announcement/NN
caused/VBD
the/DT
company/NN
's/POS
stock/NN
to/TO
surge/VB
$/$
6.50/CD
to/TO
close/VB
at/IN
$/$
75.50/CD
a/DT
share/NN
./.
Microsoft/NNP
's/POS
surprising/JJ
strength/NN
is/VBZ
one/CD
example/NN
of/IN
the/DT
difficulty/NN
facing/VBG
investors/NNS
looking/VBG
for/IN
reassurances/NNS
about/IN
the/DT
financial/JJ
health/NN
of/IN
the/DT
computer/NN
firms/NNS
./.
``/``
It/PRP
's/VBZ
hard/JJ
to/TO
know/VB
what/WP
to/TO
expect/VB
at/IN
this/DT
point/NN
,/,
''/''
said/VBD
Peter/NNP
Rogers/NNP
,/,
an/DT
analyst/NN
at/IN
Robertson/NNP
Stephens/NNP
&/CC
Co/NNP
./.
``/``
The/DT
industry/NN
defies/VBZ
characterization/NN
./.
''/''
To/TO
illustrate/VB
,/,
Mr./NNP
Rogers/NNP
said/VBD
that/IN
of/IN
the/DT
14/CD
computer-related/JJ
firms/NNS
he/PRP
follows/VBZ
,/,
half/NN
will/MD
report/VB
for/IN
their/PRP$
most/RBS
recent/JJ
quarter/NN
earnings/NNS
below/IN
last/JJ
year/NN
's/POS
results/NNS
,/,
and/CC
half/NN
above/IN
those/DT
results/NNS
./.
Among/IN
those/DT
companies/NNS
expected/VBN
to/TO
have/VB
a/DT
down/JJ
quarter/NN
are/VBP
Hewlett-Packard/NNP
Co./NNP
,/,
Amdahl/NNP
Corp./NNP
and/CC
Sun/NNP
Microsystems/NNP
Inc./NNP
,/,
generally/RB
solid/JJ
performers/NNS
in/IN
the/DT
past/NN
./.
International/NNP
Business/NNP
Machines/NNP
Corp./NNP
also/RB
is/VBZ
expected/VBN
to/TO
report/VB
disappointing/JJ
results/NNS
./.
Apple/NNP
Computer/NNP
Inc./NNP
,/,
meanwhile/RB
,/,
is/VBZ
expected/VBN
to/TO
show/VB
improved/JJ
earnings/NNS
for/IN
the/DT
period/NN
ended/VBN
Sept/NNP
./.
Another/DT
contradictory/JJ
message/NN
comes/VBZ
from/IN
Businessland/NNP
Inc./NNP
,/,
a/DT
computer/NN
retailer/NN
./.
In/IN
July/NNP
,/,
the/DT
company/NN
reported/VBD
that/IN
booming/JJ
sales/NNS
of/IN
new/JJ
personal/JJ
computers/NNS
from/IN
Apple/NNP
and/CC
IBM/NNP
had/VBD
resulted/VBN
in/IN
net/JJ
income/NN
more/RBR
than/IN
doubling/VBG
for/IN
its/PRP$
fourth/JJ
quarter/NN
ended/VBN
June/NNP
30/CD
to/TO
$/$
7.4/CD
million/CD
,/,
or/CC
23/CD
cents/NNS
a/DT
share/NN
./.
This/DT
month/NN
,/,
however/RB
,/,
Businessland/NNP
warned/VBD
investors/NNS
that/IN
results/NNS
for/IN
its/PRP$
first/JJ
quarter/NN
ended/VBD
Sept./NNP
30/CD
had/VBD
n't/RB
met/VBN
expectations/NNS
./.
The/DT
company/NN
said/VBD
it/PRP
expects/VBZ
earnings/NNS
of/IN
14/CD
to/TO
17/CD
cents/NNS
a/DT
share/NN
,/,
down/RB
from/IN
25/CD
cents/NNS
a/DT
share/NN
in/IN
the/DT
year-earlier/JJ
period/NN
./.
While/IN
the/DT
earnings/NNS
picture/NN
confuses/VBZ
,/,
observers/NNS
say/VBP
the/DT
major/JJ
forces/NNS
expected/VBD
to/TO
shape/VB
the/DT
industry/NN
in/IN
the/DT
coming/JJ
year/NN
are/VBP
clearer/JJR
./.
Companies/NNS
will/MD
continue/VB
to/TO
war/VB
over/IN
standards/NNS
./.
In/IN
computer/NN
publishing/NN
,/,
a/DT
battle/NN
over/IN
typefaces/NNS
is/VBZ
hurting/VBG
Adobe/NNP
Systems/NNP
Inc./NNP
,/,
which/WDT
sells/VBZ
software/NN
that/WDT
controls/VBZ
the/DT
image/NN
produced/VBN
by/IN
printers/NNS
and/CC
displays/NNS
./.
Until/IN
recently/RB
,/,
Adobe/NNP
had/VBD
a/DT
lock/NN
on/IN
the/DT
market/NN
for/IN
image/NN
software/NN
,/,
but/CC
last/JJ
month/NN
Apple/NNP
,/,
Adobe/NNP
's/POS
biggest/JJS
customer/NN
,/,
and/CC
Microsoft/NNP
rebelled/VBD
./.
Now/RB
the/DT
two/CD
firms/NNS
are/VBP
collaborating/VBG
on/IN
an/DT
alternative/NN
to/TO
Adobe/NNP
's/POS
approach/NN
,/,
and/CC
analysts/NNS
say/VBP
they/PRP
are/VBP
likely/JJ
to/TO
carry/VB
IBM/NNP
,/,
the/DT
biggest/JJS
seller/NN
of/IN
personal/JJ
computers/NNS
,/,
along/RB
with/IN
them/PRP
./.
The/DT
short-term/JJ
outlook/NN
for/IN
Adobe/NNP
's/POS
business/NN
,/,
however/RB
,/,
appears/VBZ
strong/JJ
./.
The/DT
company/NN
is/VBZ
beginning/VBG
to/TO
ship/VB
a/DT
new/JJ
software/NN
program/NN
that/WDT
's/VBZ
being/VBG
heralded/VBN
as/IN
a/DT
boon/NN
for/IN
owners/NNS
of/IN
low-end/JJ
printers/NNS
sold/VBN
by/IN
Apple/NNP
./.
The/DT
program/NN
is/VBZ
aimed/VBN
at/IN
improving/VBG
the/DT
quality/NN
of/IN
printed/JJ
material/NN
./.
John/NNP
Warnock/NNP
,/,
Adobe/NNP
's/POS
chief/JJ
executive/JJ
officer/NN
,/,
said/VBD
the/DT
Mountain/NNP
View/NNP
,/,
Calif./NNP
,/,
company/NN
has/VBZ
been/VBN
receiving/VBG
1,000/CD
calls/NNS
a/DT
day/NN
about/IN
the/DT
product/NN
since/IN
it/PRP
was/VBD
demonstrated/VBN
at/IN
a/DT
computer/NN
publishing/NN
conference/NN
several/JJ
weeks/NNS
ago/RB
./.
Meanwhile/RB
,/,
competition/NN
between/IN
various/JJ
operating/NN
systems/NNS
,/,
which/WDT
control/VBP
the/DT
basic/JJ
functions/NNS
of/IN
a/DT
computer/NN
,/,
spells/VBZ
trouble/NN
for/IN
software/NN
firms/NNS
generally/RB
./.
``/``
It/PRP
creates/VBZ
uncertainty/NN
and/CC
usually/RB
slows/VBZ
down/RP
sales/NNS
,/,
''/''
said/VBD
Russ/NNP
Crabs/NNP
,/,
an/DT
analyst/NN
at/IN
Soundview/NNP
Financial/NNP
Group/NNP
./.
Mr./NNP
Crabs/NNP
said/VBD
this/DT
probably/RB
is/VBZ
behind/IN
the/DT
expected/JJ
weak/JJ
performance/NN
of/IN
Aldus/NNP
Corp./NNP
,/,
maker/NN
of/IN
a/DT
widely/RB
used/VBN
computer/NN
publishing/NN
program/NN
./.
He/PRP
expects/VBZ
Aldus/NNP
to/TO
report/VB
earnings/NNS
of/IN
21/CD
cents/NNS
a/DT
share/NN
on/IN
revenues/NNS
of/IN
$/$
19.5/CD
million/CD
for/IN
its/PRP$
third/JJ
quarter/NN
,/,
compared/VBN
with/IN
earnings/NNS
of/IN
30/CD
cents/NNS
a/DT
share/NN
on/IN
revenue/NN
of/IN
20.4/CD
million/CD
in/IN
the/DT
year-earlier/JJ
period/NN
./.
Aldus/NNP
officials/NNS
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
On/IN
the/DT
other/JJ
hand/NN
,/,
the/DT
battle/NN
of/IN
the/DT
bus/NN
is/VBZ
expected/VBN
to/TO
grow/VB
increasingly/RB
irrelevant/JJ
./.
A/DT
bus/NN
is/VBZ
the/DT
data/NNS
highway/NN
within/IN
a/DT
computer/NN
./.
IBM/NNP
is/VBZ
backing/VBG
one/CD
type/NN
of/IN
bus/NN
called/VBD
microchannel/JJ
,/,
while/IN
the/DT
nine/CD
other/JJ
leading/JJ
computer/NN
makers/NNS
,/,
including/VBG
H-P/NNP
and/CC
Compaq/NNP
Computer/NNP
Corp./NNP
,/,
have/VBP
chosen/VBN
another/DT
method/NN
./.
``/``
Users/NNS
do/VBP
n't/RB
care/VB
about/IN
the/DT
bus/NN
,/,
''/''
said/VBD
Daniel/NNP
Benton/NNP
,/,
an/DT
analyst/NN
at/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
./.
He/PRP
said/VBD
Apple/NNP
's/POS
family/NN
of/IN
Macintosh/NNP
computers/NNS
,/,
for/IN
instance/NN
,/,
uses/VBZ
four/CD
different/JJ
buses/NNS
``/``
and/CC
no/DT
one/NN
seems/VBZ
to/TO
mind/VB
./.
''/''
The/DT
gap/NN
between/IN
winners/NNS
and/CC
laggards/NNS
will/MD
grow/VB
./.
In/IN
personal/JJ
computers/NNS
,/,
Apple/NNP
,/,
Compaq/NNP
and/CC
IBM/NNP
are/VBP
expected/VBN
to/TO
tighten/VB
their/PRP$
hold/NN
on/IN
their/PRP$
business/NN
./.
At/IN
the/DT
same/JJ
time/NN
,/,
second-tier/JJ
firms/NNS
will/MD
continue/VB
to/TO
lose/VB
ground/NN
./.
Some/DT
lagging/VBG
competitors/NNS
even/RB
may/MD
leave/VB
the/DT
personal/JJ
computer/NN
business/NN
altogether/RB
./.
Wyse/NNP
Technology/NNP
,/,
for/IN
instance/NN
,/,
is/VBZ
considered/VBN
a/DT
candidate/NN
to/TO
sell/VB
its/PRP$
troubled/JJ
operation/NN
./.
``/``
Wyse/NNP
has/VBZ
done/VBN
well/RB
establishing/VBG
a/DT
distribution/NN
business/NN
,/,
but/CC
they/PRP
have/VBP
n't/RB
delivered/VBN
products/NNS
that/WDT
sell/VBP
,/,
''/''
said/VBD
Kimball/NNP
Brown/NNP
,/,
an/DT
analyst/NN
at/IN
Prudential-Bache/NNP
Securities/NNP
./.
Mr./NNP
Brown/NNP
estimates/VBZ
Wyse/NNP
,/,
whose/WP$
terminals/NNS
business/NN
is/VBZ
strong/JJ
,/,
will/MD
report/VB
a/DT
loss/NN
of/IN
12/CD
cents/NNS
a/DT
share/NN
for/IN
its/PRP$
quarter/NN
ended/VBN
Sept/NNP
./.
Personal-computer/NN
makers/NNS
will/MD
continue/VB
to/TO
eat/VB
away/RP
at/IN
the/DT
business/NN
of/IN
more/RBR
traditional/JJ
computer/NN
firms/NNS
./.
Ever-more/RB
powerful/JJ
desk-top/JJ
computers/NNS
,/,
designed/VBN
with/IN
one/CD
or/CC
more/JJR
microprocessors/NNS
as/IN
their/PRP$
``/``
brains/NNS
,/,
''/''
are/VBP
expected/VBN
to/TO
increasingly/RB
take/VB
on/RP
functions/NNS
carried/VBN
out/RP
by/IN
more/RBR
expensive/JJ
minicomputers/NNS
and/CC
mainframes/NNS
./.
``/``
The/DT
guys/NNS
that/WDT
make/VBP
traditional/JJ
hardware/NN
are/VBP
really/RB
being/VBG
obsoleted/VBN
by/IN
microprocessor-based/JJ
machines/NNS
,/,
''/''
said/VBD
Mr./NNP
Benton/NNP
./.
As/IN
a/DT
result/NN
of/IN
this/DT
trend/NN
,/,
longtime/JJ
powerhouses/NNS
H-P/NNP
,/,
IBM/NNP
and/CC
Digital/NNP
Equipment/NNP
Corp./NNP
are/VBP
scrambling/VBG
to/TO
counterattack/VB
with/IN
microprocessor-based/JJ
systems/NNS
of/IN
their/PRP$
own/JJ
./.
But/CC
they/PRP
will/MD
have/VB
to/TO
act/VB
quickly/RB
./.
Mr./NNP
Benton/NNP
expects/VBZ
Compaq/NNP
to/TO
unveil/VB
a/DT
family/NN
of/IN
high-end/JJ
personal/JJ
computers/NNS
later/RB
this/DT
year/NN
that/WDT
are/VBP
powerful/JJ
enough/RB
to/TO
serve/VB
as/IN
the/DT
hub/NN
for/IN
communications/NNS
within/IN
large/JJ
networks/NNS
of/IN
desk-top/JJ
machines/NNS
./.
A/DT
raft/NN
of/IN
new/JJ
computer/NN
companies/NNS
also/RB
has/VBZ
targeted/VBN
this/DT
``/``
server/NN
''/''
market/NN
./.
Population/NN
Drain/NN
Ends/VBZ
For/IN
Midwestern/JJ
States/NNS
IOWA/NNP
IS/VBZ
MAKING/VBG
a/DT
comeback/NN
./.
So/RB
are/VBP
Indiana/NNP
,/,
Ohio/NNP
and/CC
Michigan/NNP
./.
The/DT
population/NN
of/IN
all/DT
four/CD
states/NNS
is/VBZ
on/IN
the/DT
upswing/NN
,/,
according/VBG
to/TO
new/JJ
Census/NNP
Bureau/NNP
estimates/NNS
,/,
following/VBG
declines/NNS
throughout/IN
the/DT
early/JJ
1980s/NNS
./.
The/DT
gains/NNS
,/,
to/TO
be/VB
sure/JJ
,/,
are/VBP
rather/RB
small/JJ
./.
Iowa/NNP
,/,
for/IN
instance/NN
,/,
saw/VBD
its/PRP$
population/NN
grow/VB
by/IN
11,000/CD
people/NNS
,/,
or/CC
0.4/CD
%/NN
,/,
between/IN
1987/CD
and/CC
1988/CD
,/,
the/DT
Census/NNP
Bureau/NNP
says/VBZ
./.
Still/RB
,/,
even/RB
that/DT
modest/JJ
increase/NN
is/VBZ
good/JJ
news/NN
for/IN
a/DT
state/NN
that/WDT
had/VBD
n't/RB
grown/VBN
at/IN
all/DT
since/IN
1981/CD
./.
Between/IN
1987/CD
and/CC
1988/CD
,/,
North/NNP
Dakota/NNP
was/VBD
the/DT
only/JJ
state/NN
in/IN
the/DT
Midwest/JJS
to/TO
lose/VB
population/NN
,/,
a/DT
loss/NN
of/IN
4,000/CD
people/NNS
./.
Six/CD
of/IN
the/DT
12/CD
midwestern/JJ
states/NNS
have/VBP
been/VBN
growing/VBG
steadily/RB
since/IN
1980/CD
--/:
Illinois/NNP
,/,
Kansas/NNP
,/,
Minnesota/NNP
,/,
Missouri/NNP
,/,
South/NNP
Dakota/NNP
and/CC
Wisconsin/NNP
./.
The/DT
Northeast/NNP
has/VBZ
been/VBN
holding/VBG
its/PRP$
own/JJ
in/IN
the/DT
population/NN
race/NN
./.
Seven/CD
of/IN
nine/CD
states/NNS
have/VBP
grown/VBN
each/DT
year/NN
since/IN
1980/CD
,/,
including/VBG
New/NNP
York/NNP
,/,
which/WDT
lost/VBD
4/CD
%/NN
of/IN
its/PRP$
population/NN
during/IN
the/DT
1970s/NNS
./.
And/CC
although/IN
Pennsylvania/NNP
and/CC
Massachusetts/NNP
suffered/VBD
slight/JJ
declines/NNS
earlier/RBR
in/IN
the/DT
decade/NN
,/,
they/PRP
are/VBP
growing/VBG
again/RB
./.
At/IN
the/DT
same/JJ
time/NN
,/,
several/JJ
states/NNS
in/IN
the/DT
South/NNP
and/CC
West/NNP
have/VBP
had/VBN
their/PRP$
own/JJ
population/NN
turnaround/NN
./.
Seven/CD
states/NNS
that/WDT
grew/VBD
in/IN
the/DT
early/JJ
1980s/NNS
are/VBP
now/RB
losing/VBG
population/NN
--/:
West/NNP
Virginia/NNP
,/,
Mississippi/NNP
,/,
Louisiana/NNP
,/,
Oklahoma/NNP
,/,
Montana/NNP
,/,
Wyoming/NNP
and/CC
Alaska/NNP
./.
Overall/RB
,/,
though/RB
,/,
the/DT
South/NNP
and/CC
West/NNP
still/RB
outpace/VBP
the/DT
Northeast/NNP
and/CC
Midwest/NNP
,/,
and/CC
fast-growing/JJ
states/NNS
like/IN
Florida/NNP
and/CC
California/NNP
ensure/VBP
that/IN
the/DT
pattern/NN
will/MD
continue/VB
./.
But/CC
the/DT
growth/NN
gap/NN
between/IN
the/DT
Sun/NNP
Belt/NNP
and/CC
other/JJ
regions/NNS
has/VBZ
clearly/RB
started/VBN
narrowing/VBG
./.
More/JJR
Elderly/JJ
Maintain/VBP
Their/PRP$
Independence/NN
THANKS/NNS
TO/TO
modern/JJ
medicine/NN
,/,
more/JJR
couples/NNS
are/VBP
growing/VBG
old/JJ
together/RB
./.
And/CC
even/RB
after/IN
losing/VBG
a/DT
spouse/NN
,/,
more/JJR
of/IN
the/DT
elderly/JJ
are/VBP
staying/VBG
independent/JJ
./.
A/DT
new/JJ
Census/NNP
Bureau/NNP
study/NN
of/IN
the/DT
noninstitutionalized/JJ
population/NN
shows/VBZ
that/IN
64/CD
%/NN
of/IN
people/NNS
aged/VBN
65/CD
to/TO
74/CD
were/VBD
living/VBG
with/IN
a/DT
spouse/NN
in/IN
1988/CD
,/,
up/RB
from/IN
59/CD
%/NN
in/IN
1970/CD
./.
This/DT
does/VBZ
n't/RB
mean/VB
they/PRP
're/VBP
less/RBR
likely/JJ
to/TO
live/VB
alone/RB
,/,
however/RB
./.
That/DT
share/NN
has/VBZ
remained/VBN
at/IN
about/RB
24/CD
%/NN
since/IN
1970/CD
./.
What/WP
has/VBZ
changed/VBN
is/VBZ
that/IN
more/JJR
of/IN
the/DT
young/JJ
elderly/JJ
are/VBP
living/VBG
with/IN
spouses/NNS
rather/RB
than/IN
with/IN
other/JJ
relatives/NNS
,/,
such/JJ
as/IN
children/NNS
./.
In/IN
1988/CD
,/,
10/CD
%/NN
of/IN
those/DT
aged/VBN
65/CD
to/TO
74/CD
lived/VBD
with/IN
relatives/NNS
other/JJ
than/IN
spouses/NNS
,/,
down/RB
from/IN
15/CD
%/NN
in/IN
1970/CD
./.
As/IN
people/NNS
get/VB
even/RB

older/JJR
,/,
many/JJ
become/VBP
widowed/JJ
./.
But/CC
even/RB
among/IN
those/DT
aged/VBN
75/CD
and/CC
older/JJR
,/,
the/DT
share/NN
living/VBG
with/IN
a/DT
spouse/NN
rose/VBD
slightly/RB
,/,
to/TO
40/CD
%/NN
in/IN
1988/CD
from/IN
38/CD
%/NN
in/IN
1970/CD
./.
Like/IN
their/PRP$
younger/JJR
counterparts/NNS
,/,
the/DT
older/JJR
elderly/JJ
are/VBP
less/RBR
likely/JJ
to/TO
live/VB
with/IN
other/JJ
relatives/NNS
./.
Only/RB
17/CD
%/NN
of/IN
those/DT
aged/VBN
75/CD
and/CC
older/JJR
lived/VBD
with/IN
relatives/NNS
other/JJ
than/IN
spouses/NNS
in/IN
1988/CD
,/,
down/RB
from/IN
26/CD
%/NN
in/IN
1970/CD
./.
The/DT
likelihood/NN
of/IN
living/VBG
alone/RB
beyond/IN
the/DT
age/NN
of/IN
75/CD
has/VBZ
increased/VBN
to/TO
40/CD
%/NN
from/IN
32/CD
%/NN
./.
More/JJR
people/NNS
are/VBP
remaining/VBG
independent/JJ
longer/RBR
presumably/RB
because/IN
they/PRP
are/VBP
better/JJR
off/RP
physically/RB
and/CC
financially/RB
./.
Careers/NNS
Count/VBP
Most/RBS
For/IN
the/DT
Well-to-Do/JJ
MANY/JJ
AFFLUENT/JJ
people/NNS
place/VBP
personal/JJ
success/NN
and/CC
money/NN
above/IN
family/NN
./.
At/IN
least/JJS
that/IN
's/POS
what/WP
a/DT
survey/NN
by/IN
Ernst/NNP
&/CC
Young/NNP
and/CC
Yankelovich/NNP
,/,
Clancy/NNP
,/,
Shulman/NNP
indicates/VBZ
./.
Two-thirds/NNS
of/IN
respondents/NNS
said/VBD
they/PRP
strongly/RB
felt/VBD
the/DT
need/NN
to/TO
be/VB
successful/JJ
in/IN
their/PRP$
jobs/NNS
,/,
while/IN
fewer/JJR
than/IN
half/NN
said/VBD
they/PRP
strongly/RB
felt/VBD
the/DT
need/NN
to/TO
spend/VB
more/JJR
time/NN
with/IN
their/PRP$
families/NNS
./.
Being/VBG
successful/JJ
in/IN
careers/NNS
and/CC
spending/VBG
the/DT
money/NN
they/PRP
make/VBP
are/VBP
top/JJ
priorities/NNS
for/IN
this/DT
group/NN
./.
Unlike/IN
most/JJS
studies/NNS
of/IN
the/DT
affluent/JJ
market/NN
,/,
this/DT
survey/NN
excluded/VBD
the/DT
super-rich/JJ
./.
Average/JJ
household/NN
income/NN
for/IN
the/DT
sample/NN
was/VBD
$/$
194,000/CD
,/,
and/CC
average/JJ
net/JJ
assets/NNS
were/VBD
reported/VBN
as/IN
$/$
775,000/CD
./.
The/DT
goal/NN
was/VBD
to/TO
learn/VB
about/IN
one/CD
of/IN
today/NN
's/POS
fastest-growing/JJ
income/NN
groups/NNS
,/,
the/DT
upper-middle/JJ
class/NN
./.
Although/IN
they/PRP
represent/VBP
only/RB
2/CD
%/NN
of/IN
the/DT
population/NN
,/,
they/PRP
control/VBP
nearly/RB
one-third/NN
of/IN
discretionary/JJ
income/NN
./.
Across/IN
the/DT
board/NN
,/,
these/DT
consumers/NNS
value/VBP
quality/NN
,/,
buy/VBP
what/WP
they/PRP
like/VBP
rather/RB
than/IN
just/RB
what/WP
they/PRP
need/VBP
,/,
and/CC
appreciate/VBP
products/NNS
that/WDT
are/VBP
distinctive/JJ
./.
Despite/IN
their/PRP$
considerable/JJ
incomes/NNS
and/CC
assets/NNS
,/,
40/CD
%/NN
of/IN
the/DT
respondents/NNS
in/IN
the/DT
study/NN
do/VBP
n't/RB
feel/VB
financially/RB
secure/JJ
,/,
and/CC
one-fourth/NN
do/VBP
n't/RB
feel/VB
that/IN
they/PRP
have/VBP
made/VBN
it/PRP
./.
Twenty/CD
percent/NN
do/VBP
n't/RB
even/RB
feel/VB
they/PRP
are/VBP
financially/RB
well/RB
off/RP
./.
Many/JJ
of/IN
the/DT
affluent/NN
are/VBP
n't/RB
comfortable/JJ
with/IN
themselves/PRP
,/,
either/RB
./.
About/RB
40/CD
%/NN
do/VBP
n't/RB
feel/VB
they/PRP
're/VBP
more/RBR
able/JJ
than/IN
others/NNS
./.
While/IN
twothirds/NNS
feel/VBP
some/DT
guilt/NN
about/IN
being/VBG
affluent/NN
,/,
only/RB
25/CD
%/NN
give/VBP
$/$
2,500/CD
or/CC
more/JJR
to/TO
charity/NN
each/DT
year/NN
./.
Thirty-five/CD
percent/NN
attend/VBP
religious/JJ
services/NNS
regularly/RB
;/:
at/IN
the/DT
same/JJ
time/NN
,/,
60/CD
%/NN
feel/VBP
that/IN
in/IN
life/NN
one/PRP
sometimes/RB
has/VBZ
to/TO
compromise/VB
one/PRP
's/POS
principles/NNS
./.
Odds/NNS
and/CC
Ends/NNS
THE/DT
NUMBER/NN
of/IN
women/NNS
and/CC
minorities/NNS
who/WP
hold/VBP
jobs/NNS
in/IN
top/JJ
management/NN
in/IN
the/DT
nation/NN
's/POS
largest/JJS
banks/NNS
has/VBZ
more/RBR
than/IN
doubled/VBN
since/IN
1978/CD
./.
The/DT
American/NNP
Bankers/NNP
Association/NNP
says/VBZ
that/IN
women/NNS
make/VB
up/RP
47/CD
%/NN
of/IN
officials/NNS
and/CC
managers/NNS
in/IN
the/DT
top/JJ
50/CD
banks/NNS
,/,
up/RB
from/IN
33/CD
%/NN
in/IN
1978/CD
./.
The/DT
share/NN
of/IN
minorities/NNS
in/IN
those/DT
positions/NNS
has/VBZ
risen/VBN
to/TO
16/CD
%/NN
from/IN
12/CD
%/NN
.../:
./.
Per-capita/JJ
personal/JJ
income/NN
in/IN
the/DT
U.S./NNP
grew/VBD
faster/RBR
than/IN
inflation/NN
last/JJ
year/NN
,/,
according/VBG
to/TO
the/DT
Bureau/NNP
of/IN
Economic/NNP
Analysis/NNP
./.
The/DT
amount/NN
of/IN
income/NN
divvied/VBN
up/RP
for/IN
each/DT
man/NN
,/,
woman/NN
and/CC
child/NN
was/VBD
$/$
16,489/CD
in/IN
1988/CD
,/,
up/RB
6.6/CD
%/NN
from/IN
$/$
15,472/CD
in/IN
1987/CD
./.
Per/IN
capita/NN
personal/JJ
income/NN
ranged/VBD
from/IN
$/$
11,116/CD
in/IN
Mississippi/NNP
to/TO
$/$
23,059/CD
in/IN
Connecticut/NNP
.../:
./.
There/EX
are/VBP
13.1/CD
million/CD
students/NNS
in/IN
college/NN
this/DT
fall/NN
,/,
up/RB
2/CD
%/NN
from/IN
1988/CD
,/,
the/DT
National/NNP
Center/NNP
for/IN
Education/NNP
Statistics/NNP
estimates/NNS
./.
About/RB
54/CD
%/NN
are/VBP
women/NNS
,/,
and/CC
44/CD
%/NN
are/VBP
part-time/JJ
students/NNS
./.
This/DT
small/JJ
Dallas/NNP
suburb/NN
's/POS
got/VBD
trouble/NN
./.
Trouble/NN
with/IN
a/DT
capital/JJ
T/NN
and/CC
that/DT
rhymes/VBZ
with/IN
P/NN
and/CC
that/DT
stands/VBZ
for/IN
pool/NN
./.
More/RBR
than/IN
30/CD
years/NNS
ago/RB
,/,
Prof./NNP
Harold/NNP
Hill/NNP
,/,
the/DT
con/JJ
man/NN
in/IN
Meredith/NNP
Willson/NNP
's/POS
``/``
The/DT
Music/NN
Man/NN
,/,
''/''
warned/VBD
the/DT
citizens/NNS
of/IN
River/NNP
City/NNP
,/,
Iowa/NNP
,/,
against/IN
the/DT
game/NN
./.
Now/RB
kindred/JJ
spirits/NNS
on/IN
Addison/NNP
's/POS
town/NN
council/NN
have/VBP
barred/VBN
the/DT
town/NN
's/POS
fanciest/JJS
hotel/NN
,/,
the/DT
Grand/NNP
Kempinski/NNP
,/,
from/IN
installing/VBG
three/CD
free/JJ
pool/NN
tables/NNS
in/IN
its/PRP$
new/JJ
lounge/NN
./.
Mayor/NNP
Lynn/NNP
Spruill/NNP
and/CC
two/CD
members/NNS
of/IN
the/DT
council/NN
said/VBD
they/PRP
were/VBD
worried/JJ
about/IN
setting/VBG
a/DT
precedent/NN
that/WDT
would/MD
permit/VB
pool/NN
halls/NNS
along/IN
Addison/NNP
's/POS
main/JJ
street/NN
./.
And/CC
the/DT
mayor/NN
,/,
in/IN
an/DT
admonition/NN
that/WDT
bears/VBZ
a/DT
rhythmic/JJ
resemblance/NN
to/TO
Prof./NNP
Hill/NNP
's/POS
,/,
warned/VBD
that/IN
``/``
alcohol/NN
leads/VBZ
to/TO
betting/NN
,/,
which/WDT
leads/VBZ
to/TO
fights/NNS
./.
''/''
The/DT
council/NN
's/POS
action/NN
is/VBZ
yet/RB
another/DT
blow/NN
to/TO
a/DT
sport/NN
that/IN
its/PRP$
fans/NNS
claim/NN
has/VBZ
been/VBN
maligned/VBN
unjustly/RB
for/IN
years/NNS
./.
``/``
Obviously/RB
they/PRP
're/VBP
not/RB
in/IN
touch/NN
with/IN
what/WP
's/VBZ
going/VBG
on/RP
,/,
''/''
says/VBZ
Tom/NNP
Manske/NNP
,/,
vice/NN
president/NN
of/IN
the/DT
National/NNP
Pocket/NNP
Billiards/NNP
Association/NNP
./.
Pool/NN
is/VBZ
hot/JJ
in/IN
New/NNP
York/NNP
and/CC
Chicago/NNP
,/,
he/PRP
insists/VBZ
,/,
where/WRB
``/``
upscale/JJ
,/,
suit-and-tie/JJ
places/NNS
''/''
are/VBP
adding/VBG
tables/NNS
./.
With/IN
today/NN
's/POS
tougher/JJR
drunk/JJ
driving/NN
laws/NNS
,/,
he/PRP
adds/VBZ
,/,
``/``
people/NNS
do/VBP
n't/RB
want/VB
to/TO
just/RB
sit/VB
around/RB
and/CC
drink/VB
./.
''/''
Besides/IN
,/,
rowdy/JJ
behavior/NN
seems/VBZ
unlikely/JJ
at/IN
the/DT
Grand/NNP
Kempinski/NNP
,/,
where/WRB
rooms/NNS
average/VBP
$/$
200/CD
a/DT
night/NN
and/CC
the/DT
cheap/JJ
mixed/JJ
drinks/NNS
go/VBP
for/IN
$/$
3.50/CD
a/DT
pop/NN
./.
At/IN
the/DT
lounge/NN
,/,
manager/NN
Elizabeth/NNP
Dyer/NNP
wo/MD
n't/RB
admit/VB
patrons/NNS
in/IN
jeans/NNS
,/,
T-shirts/NNS
or/CC
tennis/NN
shoes/NNS
./.
But/CC
a/DT
majority/NN
of/IN
the/DT
Addison/NNP
council/NN
did/VBD
n't/RB
buy/VB
those/DT
arguments/NNS
./.
Introducing/VBG
pool/NN
,/,
argued/VBD
Councilwoman/NNP
Riley/NNP
Reinker/NNP
,/,
would/MD
be/VB
``/``
dangerous/JJ
./.
It/PRP
would/MD
open/VB
a/DT
can/NN
of/IN
worms/NNS
./.
''/''
Addison/NNP
is/VBZ
no/DT
stranger/NN
to/TO
cans/NNS
of/IN
worms/NNS
,/,
either/RB
./.
After/IN
its/PRP$
previous/JJ
mayor/NN
committed/VBD
suicide/NN
last/JJ
year/NN
,/,
an/DT
investigation/NN
disclosed/VBD
that/IN
town/NN
officials/NNS
regularly/RB
voted/VBD
on/IN
their/PRP$
own/JJ
projects/NNS
,/,
gave/VBD
special/JJ
favors/NNS
to/TO
developer/NN
friends/NNS
and/CC
dipped/VBD
into/IN
the/DT
town/NN
's/POS
coffers/NNS
for/IN
trips/NNS
and/CC
retreats/NNS
./.
The/DT
revelations/NNS
embarrassed/VBD
town/NN
officials/NNS
,/,
although/IN
they/PRP
argued/VBD
that/IN
the/DT
problems/NNS
were/VBD
n't/RB
as/RB
severe/JJ
as/IN
the/DT
media/NNS
suggested/VBD
./.
Now/RB
comes/VBZ
the/DT
pool/NN
flap/NN
./.
``/``
I/PRP
think/VBP
there/EX
's/VBZ
some/DT
people/NNS
worried/JJ
about/IN
something/NN
pretty/RB
ridiculous/JJ
,/,
''/''
Councilman/NNP
John/NNP
Nolan/NNP
says/VBZ
./.
``/``
I/PRP
thought/VBD
this/DT
was/VBD
all/DT
taken/VBN
care/NN
of/IN
in/IN
`/``
The/DT
Music/NN
Man/NN
./.
'/''
''/''
The/DT
only/JJ
thing/NN
Robert/NNP
Goldberg/NNP
could/MD
praise/VB
about/IN
CBS/NNP
's/POS
new/JJ
show/NN
``/``
Island/NNP
Son/NNP
''/''
(/(
Leisure/NNP
&/CC
Arts/NNP
,/,
Sept./NNP
25/CD
the/DT
local/JJ
color/NN
;/:
unfortunately/RB
neither/CC
he/PRP
nor/CC
the/DT
producers/NNS
of/IN
the/DT
show/NN
have/VBP
done/VBN
their/PRP$
homework/NN
./.
For/IN
instance/NN
:/:
``/``
Haole/FW
''/''
(/(
white/JJ
the/DT
ultimate/JJ
insult/NN
;/:
``/``
Mainland/JJ
haole/FW
''/''
is/VBZ
./.
Richard/NNP
Chamberlain/NNP
dresses/VBZ
as/IN
a/DT
``/``
Mainland/JJ
haole/FW
,/,
''/''
tucking/VBG
in/RP
a/DT
Hawaiian/JJ
shirt/NN
and/CC
rolling/VBG
up/RP
its/PRP$
long/JJ
sleeves/NNS
./.
And/CC
the/DT
local/JJ
expression/NN
for/IN
brother/NN
is/VBZ
``/``
brah/FW
,/,
''/''
not/RB
``/``
bruddah/FW
./.
''/''
And/CC
even/RB
if/IN
a/DT
nurse/NN
would/MD
wear/VB
flowers/NNS
in/IN
her/PRP$
hair/NN
while/NN
on/IN
duty/NN
,/,
if/IN
she/PRP
were/VBD
engaged/JJ
she/PRP
would/MD
know/VB
to/TO
wear/VB
them/PRP
behind/IN
her/PRP
left/JJ
,/,
not/RB
right/JJ
,/,
ear/NN
./.
Sorry/JJ
,/,
the/DT
show/NN
does/VBZ
not/RB
even/RB
have/VB
the/DT
one/CD
redeeming/JJ
quality/NN
of/IN
genuine/JJ
local/JJ
color/NN
./.
Anita/NNP
Davis/NNP
Austin/NNP
,/,
Texas/NNP
Of/IN
all/DT
the/DT
ethnic/JJ
tensions/NNS
in/IN
America/NNP
,/,
which/WDT
is/VBZ
the/DT
most/RBS
troublesome/JJ
right/RB
now/RB
?/.
A/DT
good/JJ
bet/NN
would/MD
be/VB
the/DT
tension/NN
between/IN
blacks/NNPS
and/CC
Jews/NNPS
in/IN
New/NNP
York/NNP
City/NNP
./.
Or/CC
so/IN
it/PRP
must/MD
seem/VB
to/TO
Jackie/NNP
Mason/NNP
,/,
the/DT
veteran/JJ
Jewish/JJ
comedian/NN
appearing/VBG
in/IN
a/DT
new/JJ
ABC/NNP
sitcom/NN
airing/NN
on/IN
Tuesday/NNP
nights/NNS
9:30-10/CD
p.m./RB
EDT/NNP
Not/RB
only/RB
is/VBZ
Mr./NNP
Mason/NNP
the/DT
star/NN
of/IN
``/``
Chicken/NNP
Soup/NNP
,/,
''/''
he/PRP
's/VBZ
also/RB
the/DT
inheritor/NN
of/IN
a/DT
comedic/JJ
tradition/NN
dating/VBG
back/RB
to/TO
``/``
Duck/NNP
Soup/NNP
,/,
''/''
and/CC
he/PRP
's/VBZ
currently/RB
a/DT
man/NN
in/IN
hot/JJ
water/NN
./.
Here/RB
,/,
in/IN
neutral/JJ
language/NN
,/,
is/VBZ
the/DT
gist/NN
of/IN
Mr./NNP
Mason/NNP
's/POS
remarks/NNS
,/,
quoted/VBN
first/RB
in/IN
the/DT
Village/NNP
Voice/NNP
while/IN
he/PRP
was/VBD
a/DT
paid/JJ
spokesman/NN
for/IN
the/DT
Rudolph/NNP
Giuliani/NNP
mayoral/JJ
campaign/NN
,/,
and/CC
then/RB
in/IN
Newsweek/NNP
after/IN
he/PRP
and/CC
the/DT
campaign/NN
parted/VBD
company/NN
./.
Mr./NNP
Mason/NNP
said/VBD
that/IN
many/JJ
Jewish/JJ
voters/NNS
feel/VBP
guilty/JJ
toward/IN
blacks/NNS
,/,
so/IN
they/PRP
support/VBP
black/JJ
candidates/NNS
uncritically/RB
./.
He/PRP
said/VBD
that/IN
many/JJ
black/JJ
voters/NNS
feel/VBP
bitter/JJ
about/IN
racial/JJ
discrimination/NN
,/,
so/IN
they/PRP
,/,
too/RB
,/,
support/VBP
black/JJ
candidates/NNS
uncritically/RB
./.
He/PRP
said/VBD
that/IN
Jews/NNPS
have/VBP
contributed/VBN
more/JJR
to/TO
black/JJ
causes/NNS
over/IN
the/DT
years/NNS
than/IN
vice/FW
versa/FW
./.
Of/IN
course/NN
,/,
Mr./NNP
Mason/NNP
did/VBD
not/RB
use/VB
neutral/JJ
language/NN
./.
As/IN
a/DT
practitioner/NN
of/IN
ethnic/JJ
humor/NN
from/IN
the/DT
old/JJ
days/NNS
on/IN
the/DT
Borscht/NNP
Belt/NNP
,/,
live/JJ
television/NN
and/CC
the/DT
nightclub/NN
circuit/NN
,/,
Mr./NNP
Mason/NNP
instinctively/RB
reached/VBD
for/IN
the/DT
vernacular/NN
./.
He/PRP
said/VBD
Jews/NNPS
were/VBD
``/``
sick/JJ
with/IN
complexes/NNS
''/''
;/:
and/CC
he/PRP
called/VBD
David/NNP
Dinkins/NNP
,/,
Mr./NNP
Giuliani/NNP
's/POS
black/JJ
opponent/NN
,/,
``/``
a/DT
fancy/JJ
shvartze/NN
with/IN
a/DT
mustache/NN
./.
''/''
If/IN
Mr./NNP
Mason/NNP
had/VBD
used/VBN
less/RBR
derogatory/JJ
language/NN
to/TO
articulate/VB
his/PRP$
amateur/JJ
analysis/NN
of/IN
the/DT
voting/NN
behavior/NN
of/IN
his/PRP$
fellow/NN
New/NNP
Yorkers/NNP
,/,
would/MD
the/DT
water/NN
be/VB
quite/RB
so/RB
hot/JJ
?/.
It/PRP
probably/RB
would/MD
,/,
because/IN
few/JJ
or/CC
none/NN
of/IN
the/DT
people/NNS
upset/JJ
by/IN
Mr./NNP
Mason/NNP
's/POS
remarks/NNS
have/VBP
bothered/VBN
to/TO
distinguish/VB
between/IN
the/DT
substance/NN
of/IN
his/PRP$
comments/NNS
and/CC
the/DT
fact/NN
that/IN
he/PRP
used/VBD
insulting/JJ
language/NN
./.
In/IN
addition/NN
,/,
some/DT
of/IN
Mr./NNP
Mason/NNP
's/POS
critics/NNS
have/VBP
implied/VBN
that/IN
his/PRP$
type/NN
of/IN
ethnic/JJ
humor/NN
is/VBZ
itself/PRP
a/DT
form/NN
of/IN
racism/NN
./.
For/IN
example/NN
,/,
the/DT
New/NNP
York/NNP
state/NN
counsel/NN
for/IN
the/DT
NAACP/NNP
said/VBD
that/IN
Mr./NNP
Mason/NNP
is/VBZ
``/``
like/IN
a/DT
dinosaur/NN
./.
People/NNS
are/VBP
fast/RB
leaving/VBG
the/DT
place/NN
where/WRB
he/PRP
is/VBZ
stuck/VBN
./.
''/''
These/DT
critics/NNS
fail/VBP
to/TO
distinguish/VB
between/IN
the/DT
type/NN
of/IN
ethnic/JJ
humor/NN
that/WDT
aims/VBZ
at/IN
disparaging/VBG
another/DT
group/NN
,/,
such/JJ
as/IN
``/``
Polish/JJ
jokes/NNS
''/''
;/:
and/CC
the/DT
type/NN
that/WDT
is/VBZ
double-edged/JJ
,/,
aiming/VBG
inward/RB
as/RB
well/RB
as/IN
outward/RB
./.
The/DT
latter/JJ
typically/RB
is/VBZ
the/DT
humor/NN
of/IN
the/DT
underdog/NN
,/,
and/CC
it/PRP
was/VBD
perfected/VBN
by/IN
both/DT
blacks/NNPS
and/CC
Jews/NNPS
on/IN
the/DT
minstrel/NN
and/CC
vaudeville/NN
stage/NN
as/IN
a/DT
means/NN
of/IN
mocking/VBG
their/PRP$
white/JJ
and/CC
gentile/JJ
audiences/NNS
along/IN
with/IN
themselves/PRP
./.
In/IN
the/DT
hands/NNS
of/IN
a/DT
zealot/NN
like/IN
Lenny/NNP
Bruce/NNP
,/,
this/DT
double-edged/JJ
blade/NN
could/MD
cut/VB
both/DT
the/DT
self/NN
and/CC
the/DT
audience/NN
to/TO
ribbons/NNS
./.
But/CC
wielded/VBN
by/IN
a/DT
pro/NN
like/IN
Jackie/NNP
Mason/NNP
,/,
it/PRP
is/VBZ
a/DT
constructive/JJ
form/NN
of/IN
mischief/NN
./.
Why/WRB
constructive/JJ
?/.
Because/IN
despite/IN
all/PDT
the/DT
media/NNS
prattle/NN
about/IN
comedy/NN
and/CC
politics/NNS
not/RB
mixing/VBG
,/,
they/PRP
are/VBP
similar/JJ
in/IN
one/CD
respect/NN
:/:
Both/DT
can/MD
serve/VB
as/IN
mechanisms/NNS
for/IN
easing/VBG
tensions/NNS
and/CC
facilitating/VBG
the/DT
co-existence/NN
of/IN
groups/NNS
in/IN
conflict/NN
./.
That/DT
's/VBZ
why/WRB
it/PRP
's/VBZ
dangerous/JJ
to/TO
have/VB
well-intentioned/JJ
thought/NN
police/NNS
,/,
on/IN
college/NN
campuses/NNS
and/CC
elsewhere/RB
,/,
taboo/VB
all/DT
critical/JJ
mention/NN
of/IN
group/NN
differences/NNS
./.
As/IN
Elizabeth/NNP
Kristol/NNP
wrote/VBD
in/IN
the/DT
New/NNP
York/NNP
Times/NNP
just/RB
before/IN
the/DT
Mason/NNP
donnybrook/NN
,/,
``/``
Perhaps/RB
intolerance/NN
would/MD
not/RB
boil/VB
over/RP
with/IN
such/JJ
intensity/NN
if/IN
honest/JJ
differences/NNS
were/VBD
allowed/VBN
to/TO
simmer/VB
./.
''/''
The/DT
question/NN
is/VBZ
,/,
if/IN
group/NN
conflicts/NNS
still/RB
exist/VBP
(/(
as/IN
undeniably/RB
they/PRP
do/VBP
)/)
,/,
and/CC
if/IN
Mr./NNP
Mason/NNP
's/POS
type/NN
of/IN
ethnic/JJ
humor/NN
is/VBZ
passe/JJ
,/,
then/RB
what/WP
other/JJ
means/NNS
do/VBP
we/PRP
have/VB
for/IN
letting/VBG
off/RP
steam/NN
?/.
Do/VB
n't/RB
say/VB
the/DT
TV/NN
sitcom/NN
,/,
because/IN
that/DT
happens/VBZ
to/TO
be/VB
a/DT
genre/NN
that/IN
,/,
in/IN
its/PRP$
desperate/JJ
need/NN
to/TO
attract/VB
everybody/NN
and/CC
offend/VB
nobody/NN
,/,
resembles/VBZ
politics/NNS
more/RBR
than/IN
it/PRP
does/VBZ
comedy/NN
./.
It/PRP
is/VBZ
true/JJ
that/IN
the/DT
best/JJS
sitcoms/NNS
do/VBP
allow/VB
group/NN
differences/NNS
to/TO
simmer/VB
:/:
yuppies/NNS
vs./IN
blue-collar/JJ
Bostonians/NNPS
in/IN
``/``
Cheers/NNP
''/''
;/:
children/NNS
vs./IN
adults/NNS
in/IN
``/``
The/DT
Cosby/NNP
Show/NNP
./.
''/''
But/CC
these/DT
are/VBP
not/RB
the/DT
differences/NNS
that/WDT
make/VBP
headlines/NNS
./.
In/IN
``/``
Chicken/NNP
Soup/NNP
,/,
''/''
Mr./NNP
Mason/NNP
plays/VBZ
Jackie/NNP
,/,
a/DT
Jewish/JJ
bachelor/NN
courting/VBG
Maddie/NNP
Lynn/NNP
Redgrave/NNP
an/DT
Irish/JJ
widow/NN
and/CC
mother/NN
of/IN
three/CD
,/,
against/IN
the/DT
wishes/NNS
of/IN
his/PRP$
mother/NN
Rita/NNP
Karin/NNP
her/PRP$
brother/NN
Michael/NNP
Brandon/NNP
Maggart/NNP
It/PRP
's/POS
worth/JJ
noting/VBG
that/IN
both/DT
disapproving/JJ
relatives/NNS
are/VBP
immigrants/NNS
./.
At/IN
least/JJS
,/,
they/PRP
both/DT
speak/VBP
with/IN
strong/JJ
accents/NNS
,/,
as/IN
do/VBP
Jackie/NNP
and/CC
Maddie/NNP
./.
It/PRP
could/MD
n't/RB
be/VB
more/RBR
obvious/JJ
that/IN
``/``
Chicken/NNP
Soup/NNP
''/''
is/VBZ
being/VBG
made/VBN
from/IN
an/DT
old/JJ
recipe/NN
./.
And/CC
a/DT
safe/JJ
one/CD
--/:
imagine/VB
if/IN
the/DT
romance/NN
in/IN
question/NN
were/VBD
between/IN
an/DT
Orthodox/NNP
Jew/NNP
and/CC
a/DT
member/NN
of/IN
the/DT
Nation/NNP
of/IN
Islam/NNP
./.
Back/RB
in/IN
the/DT
1920s/NNS
,/,
the/DT
play/NN
and/CC
movie/NN
versions/NNS
of/IN
``/``
Abie/NNP
's/POS
Irish/NNP
Rose/NNP
''/''
made/VBD
the/DT
theme/NN
of/IN
courtship/NN
between/IN
the/DT
assimilated/JJ
offspring/NN
of/IN
Jewish/JJ
and/CC
Irish/JJ
immigrants/NNS
so/RB
popular/JJ
that/IN
its/PRP$
author/NN
,/,
Anne/NNP
Nichols/NNP
,/,
lost/VBD
a/DT
plagiarism/NN
suit/NN
on/IN
the/DT
grounds/NNS
that/IN
the/DT
plot/NN
has/VBZ
entered/VBN
the/DT
public/JJ
domain/NN
./.
And/CC
it/PRP
has/VBZ
remained/VBN
there/RB
,/,
as/IN
evidenced/VBN
by/IN
its/PRP$
reappearance/NN
in/IN
a/DT
1972/CD
CBS/NNP
sitcom/NN
called/VBN
``/``
Bridget/NNP
Loves/NNP
Bernie/NNP
,/,
''/''
whose/WP$
sole/JJ
distinction/NN
was/VBD
that/IN
it/PRP
led/VBD
to/TO
the/DT
real-life/JJ
marriage/NN
of/IN
Meredith/NNP
Baxter/NNP
and/CC
David/NNP
Birney/NNP
./.
Clearly/RB
,/,
the/DT
question/NN
with/IN
``/``
Chicken/NNP
Soup/NNP
''/''
is/VBZ
not/RB
whether/IN
the/DT
pot/NN
will/MD
boil/VB
over/RP
,/,
but/CC
whether/IN
it/PRP
will/MD
simmer/VB
at/IN
all/DT
./.
So/IN
far/RB
,/,
the/DT
bubbles/NNS
have/VBP
been/VBN
few/JJ
and/CC
far/RB
between/RB
./.
Part/NN
of/IN
the/DT
problem/NN
is/VBZ
the/DT
tendency/NN
of/IN
all/DT
sitcoms/NNS
,/,
ever/RB
since/IN
the/DT
didactic/JJ
days/NNS
of/IN
Norman/NNP
Lear/NNP
,/,
to/TO
preach/VB
about/IN
social/JJ
issues/NNS
./.
To/TO
some/DT
extent/NN
,/,
this/DT
tendency/NN
emerges/VBZ
whenever/WRB
the/DT
show/NN
tries/VBZ
to/TO
enlighten/VB
us/PRP
about/IN
ethnic/JJ
stereotypes/NNS
by/IN
reversing/VBG
them/PRP
./.
For/IN
instance/NN
,/,
Michael/NNP
dislikes/VBZ
Jackie/NNP
not/RB
because/IN
he/PRP
's/VBZ
a/DT
shrewd/JJ
Jewish/JJ
businessman/NN
,/,
but/CC
because/IN
he/PRP
quits/VBZ
his/PRP$
well-paying/JJ
job/NN
as/IN
a/DT
salesman/NN
in/IN
order/NN
to/TO
become/VB
a/DT
social/JJ
worker/NN
./.
Even/RB
more/RBR
problematic/JJ
is/VBZ
the/DT
incompatibility/NN
between/IN
sitcom/NN
preachiness/NN
and/CC
Mr./NNP
Mason/NNP
's/POS
comic/JJ
persona/NN
./.
The/DT
best/JJS
moments/NNS
in/IN
the/DT
show/NN
occur/VBP
at/IN
the/DT
beginning/NN
and/CC
the/DT
end/NN
the/DT
middle/NN
Mr./NNP
Mason/NNP
slips/VBZ
into/IN
his/PRP$
standup/JJ
mode/NN
and/CC
starts/NNS
meting/VBG
out/RP
that/DT
old-fashioned/JJ
Jewish/JJ
mischief/NN
to/TO
other/JJ
people/NNS
as/RB
well/RB
as/IN
to/TO
himself/PRP
./.
But/CC
too/RB
often/RB
,/,
these/DT
routines/NNS
lack/VBP
spark/NN
because/IN
this/DT
sitcom/NN
,/,
like/IN
all/DT
sitcoms/NNS
,/,
is/VBZ
timid/JJ
about/IN
confronting/VBG
Mr./NNP
Mason/NNP
's/POS
stock/NN
in/IN
trade/NN
-/:
ethnic/JJ

differences/NNS
./.
I/PRP
'm/VBP
not/RB
suggesting/VBG
that/IN
the/DT
producers/NNS
start/VB
putting/VBG
together/RB
episodes/NNS
about/IN
topics/NNS
like/IN
the/DT
Catholic-Jewish/JJ
dispute/NN
over/IN
the/DT
Carmelite/JJ
convent/NN
at/IN
Auschwitz/NNP
./.
That/DT
issue/NN
,/,
like/IN
racial/JJ
tensions/NNS
in/IN
New/NNP
York/NNP
City/NNP
,/,
will/MD
have/VB
to/TO
cool/VB
down/RP
,/,
not/RB
heat/VB
up/RP
,/,
before/IN
it/PRP
can/MD
simmer/VB
./.
But/CC
I/PRP
am/VBP
suggesting/VBG
that/IN
they/PRP
stop/VB
requiring/VBG
Mr./NNP
Mason/NNP
to/TO
interrupt/VB
his/PRP$
classic/JJ
shtik/NN
with/IN
some/DT
line/NN
about/IN
``/``
caring/VBG
for/IN
other/JJ
people/NNS
''/''
that/WDT
would/MD
sound/VB
shmaltzy/NN
on/IN
the/DT
lips/NNS
of/IN
Miss/NNP
America/NNP
./.
At/IN
your/PRP$
age/NN
,/,
Jackie/NNP
,/,
you/PRP
ought/MD
to/TO
know/VB
that/IN
you/PRP
ca/MD
n't/RB
make/VB
soup/NN
without/IN
turning/VBG
up/RP
the/DT
flame/NN
./.
The/DT
official/JJ
White/NNP
House/NNP
reaction/NN
to/TO
a/DT
plunge/NN
in/IN
stock/NN
prices/NNS
has/VBZ
a/DT
60-year/JJ
history/NN
of/IN
calm/JJ
,/,
right/RB
up/IN
through/IN
Friday/NNP
./.
Treasury/NNP
Secretary/NNP
Nicholas/NNP
Brady/NNP
said/VBD
in/IN
a/DT
statement/NN
Friday/NNP
that/IN
the/DT
stock-market/NN
decline/NN
``/``
does/VBZ
n't/RB
signal/VB
any/DT
fundamental/JJ
change/NN
in/IN
the/DT
condition/NN
of/IN
the/DT
economy/NN
./.
''/''
``/``
The/DT
economy/NN
,/,
''/''
he/PRP
added/VBD
,/,
``/``
remains/VBZ
well-balanced/JJ
and/CC
the/DT
outlook/NN
is/VBZ
for/IN
continued/JJ
moderate/JJ
growth/NN
./.
''/''
Sound/VB
familiar/JJ
?/.
Here/RB
's/VBZ
what/WP
Ronald/NNP
Reagan/NNP
said/VBD
after/IN
the/DT
1987/CD
crash/NN
:/:
``/``
The/DT
underlying/JJ
economy/NN
remains/VBZ
sound/JJ
./.
There/EX
is/VBZ
nothing/NN
wrong/JJ
with/IN
the/DT
economy/NN
.../:
all/PDT
the/DT
indices/NNS
are/VBP
up/RB
./.
''/''
Heard/VBN
that/DT
before/RB
?/.
After/IN
the/DT
1929/CD
crash/NN
,/,
Herbert/NNP
Hoover/NNP
said/VBD
:/:
``/``
The/DT
fundamental/JJ
business/NN
of/IN
the/DT
country/NN
.../:
is/VBZ
on/IN
a/DT
sound/JJ
and/CC
prosperous/JJ
basis/NN
./.
''/''
James/NNP
Robinson/NNP
,/,
57/CD
years/NNS
old/JJ
,/,
was/VBD
elected/VBN
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
this/DT
maker/NN
of/IN
magnetic/JJ
recording/NN
heads/NNS
for/IN
disk/NN
drives/NNS
./.
He/PRP
has/VBZ
been/VBN
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
of/IN
Amperex/NNP
Electronics/NNP
Corp./NNP
,/,
a/DT
division/NN
of/IN
North/NNP
American/NNP
Philips/NNP
Corp./NNP
,/,
itself/PRP
a/DT
subsidiary/NN
of/IN
N.V/NNP
./.
Philips/NNP
of/IN
the/DT
Netherlands/NNPS
./.
Charles/NNP
J./NNP
Lawson/NNP
Jr./NNP
,/,
68/CD
,/,
who/WP
had/VBD
been/VBN
acting/JJ
chief/JJ
executive/NN
since/IN
June/NNP
14/CD
,/,
will/MD
continue/VB
as/IN
chairman/NN
./.
The/DT
former/JJ
president/NN
and/CC
chief/JJ
executive/NN
,/,
Eric/NNP
W./NNP
Markrud/NNP
,/,
resigned/VBD
in/IN
June/NNP
./.
The/DT
Senate/NNP
's/POS
decision/NN
to/TO
approve/VB
a/DT
bare-bones/JJ
deficit-reduction/NN
bill/NN
without/IN
a/DT
capital-gains/NNS
tax/NN
cut/NN
still/RB
leaves/VBZ
open/JJ
the/DT
possibility/NN
of/IN
enacting/VBG
a/DT
gains/NNS
tax/NN
reduction/NN
this/DT
year/NN
./.
Late/RB
Friday/NNP
night/NN
,/,
the/DT
Senate/NNP
voted/VBD
87-7/CD
to/TO
approve/VB
an/DT
estimated/JJ
$/$
13.5/CD
billion/CD
measure/NN
that/WDT
had/VBD
been/VBN
stripped/VBN
of/IN
hundreds/NNS
of/IN
provisions/NNS
that/WDT
would/MD
have/VB
widened/VBN
,/,
rather/RB
than/IN
narrowed/VBN
,/,
the/DT
federal/JJ
budget/NN
deficit/NN
./.
Lawmakers/NNS
drastically/RB
streamlined/VBD
the/DT
bill/NN
to/TO
blunt/VB
criticism/NN
that/IN
it/PRP
was/VBD
bloated/JJ
with/IN
special-interest/NN
tax/NN
breaks/NNS
and/CC
spending/NN
increases/NNS
./.
``/``
We/PRP
're/VBP
putting/VBG
a/DT
deficit-reduction/NN
bill/NN
back/RB
in/IN
the/DT
category/NN
of/IN
being/VBG
a/DT
deficit-reduction/NN
bill/NN
,/,
''/''
said/VBD
Senate/NNP
Budget/NNP
Committee/NNP
Chairman/NNP
James/NNP
Sasser/NNP
D./NNP
,/,
Tenn/NNP
./.
But/CC
Senate/NNP
supporters/NNS
of/IN
the/DT
trimmer/JJR
legislation/NN
said/VBD
that/IN
other/JJ
bills/NNS
would/MD
soon/RB
be/VB
moving/VBG
through/IN
Congress/NNP
that/WDT
could/MD
carry/VB
some/DT
of/IN
the/DT
measures/NNS
that/WDT
had/VBD
been/VBN
cast/VBN
aside/RB
,/,
including/VBG
a/DT
capital-gains/NNS
tax/NN
cut/NN
./.
In/IN
addition/NN
,/,
the/DT
companion/JJ
deficit-reduction/NN
bill/NN
already/RB
passed/VBN
by/IN
the/DT
House/NNP
includes/VBZ
a/DT
capital-gains/NNS
provision/NN
./.
House-Senate/NNP
negotiations/NNS
are/VBP
likely/JJ
to/TO
begin/VB
at/IN
midweek/NN
and/CC
last/VB
for/IN
a/DT
while/NN
./.
``/``
No/DT
one/NN
can/MD
predict/VB
exactly/RB
what/WP
will/MD
happen/VB
on/IN
the/DT
House/NNP
side/NN
,/,
''/''
said/VBD
Senate/NNP
Minority/NNP
Leader/NNP
Robert/NNP
Dole/NNP
R./NNP
,/,
Kan/NNP
./.
But/CC
,/,
he/PRP
added/VBD
,/,
``/``
I/PRP
believe/VBP
Republicans/NNPS
and/CC
Democrats/NNPS
will/MD
work/VB
together/RB
to/TO
get/VB
capital-gains/NNS
reform/NN
this/DT
year/NN
./.
''/''
White/NNP
House/NNP
Budget/NNP
Director/NNP
Richard/NNP
Darman/NNP
told/VBD
reporters/NNS
yesterday/RB
that/IN
the/DT
administration/NN
would/MD
n't/RB
push/VB
to/TO
keep/VB
the/DT
capital-gains/NNS
cut/NN
in/IN
the/DT
final/JJ
version/NN
of/IN
the/DT
bill/NN
./.
``/``
We/PRP
do/VBP
n't/RB
need/VB
this/DT
as/IN
a/DT
way/NN
to/TO
get/VB
capital/NN
gains/NNS
,/,
''/''
he/PRP
said/VBD
./.
House/NNP
Budget/NNP
Committee/NNP
Chairman/NNP
Leon/NNP
Panetta/NNP
D./NNP
,/,
Calif/NNP
./.
an/DT
interview/NN
,/,
``/``
If/IN
that/DT
's/VBZ
the/DT
signal/NN
that/WDT
comes/VBZ
from/IN
the/DT
White/NNP
House/NNP
,/,
that/WDT
will/MD
help/VB
a/DT
great/JJ
deal/NN
./.
''/''
The/DT
Senate/NNP
's/POS
decision/NN
was/VBD
a/DT
setback/NN
for/IN
President/NNP
Bush/NNP
and/CC
will/MD
make/VB
approval/NN
of/IN
a/DT
capital-gains/NNS
tax/NN
cut/NN
less/RBR
certain/JJ
this/DT
year/NN
./.
Opponents/NNS
of/IN
the/DT
cut/NN
are/VBP
playing/VBG
hardball/NN
./.
Senate/NNP
Majority/NNP
Leader/NNP
George/NNP
Mitchell/NNP
D./NNP
,/,
Maine/NNP
he/PRP
was/VBD
``/``
confident/JJ
''/''
that/IN
any/DT
House-Senate/NNP
agreement/NN
on/IN
the/DT
deficit-reduction/NN
legislation/NN
would/MD
n't/RB
include/VB
a/DT
capital-gains/NNS
tax/NN
cut/NN
./.
And/CC
a/DT
senior/JJ
aide/NN
to/TO
the/DT
House/NNP
Ways/NNP
and/CC
Means/NNP
Committee/NNP
,/,
where/WRB
tax/NN
legislation/NN
originates/VBZ
,/,
said/VBD
there/EX
are/VBP
n't/RB
any/DT
``/``
plans/NNS
to/TO
produce/VB
another/DT
tax/NN
bill/NN
that/WDT
could/MD
carry/VB
a/DT
gains/NNS
tax/NN
cut/NN
this/DT
year/NN
./.
''/''
One/CD
obvious/JJ
place/NN
to/TO
attach/VB
a/DT
capital-gains/NNS
tax/NN
cut/NN
,/,
and/CC
perhaps/RB
other/JJ
popular/JJ
items/NNS
stripped/VBN
from/IN
the/DT
deficit-reduction/NN
bill/NN
,/,
is/VBZ
the/DT
legislation/NN
to/TO
raise/VB
the/DT
federal/JJ
borrowing/NN
limit/NN
./.
Such/JJ
legislation/NN
must/MD
be/VB
enacted/VBN
by/IN
the/DT
end/NN
of/IN
the/DT
month/NN
./.
The/DT
Senate/NNP
bill/NN
was/VBD
pared/VBN
back/RB
in/IN
an/DT
attempt/NN
to/TO
speed/VB
deficit-reduction/NN
through/IN
Congress/NNP
./.
Because/IN
the/DT
legislation/NN
has/VBZ
n't/RB
been/VBN
completed/VBN
,/,
President/NNP
Bush/NNP
has/VBZ
until/IN
midnight/NN
tonight/NN
to/TO
enact/VB
across-the-board/JJ
spending/NN
cuts/NNS
mandated/VBN
by/IN
the/DT
Gramm-Rudman/NNP
deficit-reduction/NN
law/NN
./.
Senators/NNS
hope/VBP
that/IN
the/DT
need/NN
to/TO
avoid/VB
those/DT
cuts/NNS
will/MD
pressure/VB
the/DT
House/NNP
to/TO
agree/VB
to/TO
the/DT
streamlined/JJ
bill/NN
./.
The/DT
House/NNP
appears/VBZ
reluctant/JJ
to/TO
join/VB
the/DT
senators/NNS
./.
A/DT
key/NN
is/VBZ
whether/IN
House/NNP
Republicans/NNPS
are/VBP
willing/JJ
to/TO
acquiesce/VB
to/TO
their/PRP$
Senate/NNP
colleagues/NNS
'/POS
decision/NN
to/TO
drop/VB
many/JJ
pet/JJ
provisions/NNS
./.
``/``
Although/IN
I/PRP
am/VBP
encouraged/VBN
by/IN
the/DT
Senate/NNP
action/NN
,/,
''/''
said/VBD
Chairman/NNP
Dan/NNP
Rostenkowski/NNP
D./NNP
,/,
Ill/NNP
./.
the/DT
House/NNP
Ways/NNP
and/CC
Means/NNP
Committee/NNP
,/,
``/``
it/PRP
is/VBZ
uncertain/JJ
whether/IN
a/DT
clean/JJ
bill/NN
can/MD
be/VB
achieved/VBN
in/IN
the/DT
upcoming/JJ
conference/NN
with/IN
the/DT
Senate/NNP
./.
''/''
Another/DT
big/JJ
question/NN
hovering/VBG
over/IN
the/DT
debate/NN
is/VBZ
what/WP
President/NNP
Bush/NNP
thinks/VBZ
./.
He/PRP
has/VBZ
been/VBN
resisting/VBG
a/DT
stripped-down/JJ
bill/NN
without/IN
a/DT
guaranteed/JJ
vote/NN
on/IN
his/PRP$
capital-gains/NNS
tax/NN
cut/NN
./.
But/CC
Republican/JJ
senators/NNS
saw/VBD
no/DT
way/NN
to/TO
overcome/VB
a/DT
procedural/JJ
hurdle/NN
and/CC
garner/VB
the/DT
60/CD
votes/NNS
needed/VBN
to/TO
win/VB
the/DT
capital-gains/NNS
issue/NN
on/IN
the/DT
floor/NN
,/,
so/IN
they/PRP
went/VBD
ahead/RB
with/IN
the/DT
streamlined/JJ
bill/NN
./.
The/DT
Senate/NNP
bill/NN
was/VBD
stripped/VBN
of/IN
many/JJ
popular/JJ
,/,
though/IN
revenue-losing/JJ
,/,
provisions/NNS
,/,
a/DT
number/NN
of/IN
which/WDT
are/VBP
included/VBN
in/IN
the/DT
House-passed/JJ
bill/NN
./.
These/DT
include/VBP
a/DT
child-care/NN
initiative/NN
and/CC
extensions/NNS
of/IN
soon-to-expire/JJ
tax/NN
breaks/NNS
for/IN
low-income/JJ
housing/NN
and/CC
research-and-development/NN
expenditures/NNS
./.
Also/RB
missing/VBG
from/IN
the/DT
Senate/NNP
bill/NN
is/VBZ
the/DT
House/NNP
's/POS
repeal/NN
of/IN
a/DT
law/NN
,/,
called/VBN
Section/NNP
89/CD
,/,
that/WDT
compels/VBZ
companies/NNS
to/TO
give/VB
rank-and-file/JJ
workers/NNS
comparable/JJ
health/NN
benefits/NNS
to/TO
top/JJ
paid/VBN|JJ
executives/NNS
./.
One/CD
high-profile/JJ
provision/NN
that/WDT
was/VBD
originally/RB
in/IN
the/DT
Senate/NNP
bill/NN
but/CC
was/VBD
cut/VBN
out/RP
because/IN
it/PRP
lost/VBD
money/NN
was/VBD
the/DT
proposal/NN
by/IN
Chairman/NNP
Lloyd/NNP
Bentsen/NNP
D./NNP
,/,
Texas/NNP
the/DT
Senate/NNP
Finance/NNP
Committee/NNP
to/TO
expand/VB
the/DT
deduction/NN
for/IN
individual/JJ
retirement/NN
accounts/NNS
./.
Mr./NNP
Bentsen/NNP
said/VBD
he/PRP
hopes/VBZ
the/DT
Senate/NNP
will/MD
consider/VB
that/DT
measure/NN
soon/RB
./.
To/TO
the/DT
delight/NN
of/IN
some/DT
doctors/NNS
,/,
the/DT
bill/NN
dropped/VBD
a/DT
plan/NN
passed/VBN
by/IN
the/DT
Finance/NNP
Committee/NNP
that/WDT
would/MD
have/VB
overhauled/VBN
the/DT
entire/JJ
physician-reimbursement/JJ
system/NN
under/IN
Medicare/NNP
./.
To/TO
the/DT
detriment/NN
of/IN
many/JJ
low-income/JJ
people/NNS
,/,
efforts/NNS
to/TO
boost/VB
Medicaid/NNP
funding/NN
,/,
especially/RB
in/IN
rural/JJ
areas/NNS
,/,
also/RB
were/VBD
stricken/VBN
./.
Asked/VBN
why/WRB
senators/NNS
were/VBD
giving/VBG
up/RP
so/RB
much/JJ
,/,
New/NNP
Mexico/NNP
Sen./NNP
Pete/NNP
Domenici/NNP
,/,
the/DT
ranking/JJ
Republican/NNP
on/IN
the/DT
Senate/NNP
Budget/NNP
Committee/NNP
,/,
said/VBD
,/,
``/``
We/PRP
're/VBP
looking/VBG
like/IN
idiots/NNS
./.
Things/NNS
had/VBD
just/RB
gone/VBN
too/RB
far/RB
./.
''/''
Sen./NNP
Dole/NNP
said/VBD
that/IN
the/DT
move/NN
required/VBD
sacrifice/NN
by/IN
every/DT
senator/NN
./.
It/PRP
worked/VBD
,/,
others/NNS
said/VBD
,/,
because/IN
there/EX
were/VBD
no/DT
exceptions/NNS
:/:
all/DT
revenue-losing/JJ
provisions/NNS
were/VBD
stricken/VBN
./.
The/DT
Senate/NNP
also/RB
dropped/VBD
a/DT
plan/NN
by/IN
its/PRP$
Finance/NNP
Committee/NNP
that/WDT
would/MD
have/VB
increased/VBN
the/DT
income/NN
threshold/NN
beyond/IN
which/WDT
senior/JJ
citizens/NNS
have/VBP
their/PRP$
Social/NNP
Security/NNP
benefits/NNS
reduced/VBN
./.
In/IN
addition/NN
,/,
the/DT
bill/NN
dropped/VBD
a/DT
plan/NN
to/TO
make/VB
permanent/JJ
a/DT
3/CD
%/NN
excise/NN
tax/NN
on/IN
long-distance/JJ
telephone/NN
calls/NNS
./.
It/PRP
no/RB
longer/RBR
includes/VBZ
a/DT
plan/NN
that/WDT
would/MD
have/VB
repealed/VBN
what/WP
remains/VBZ
of/IN
the/DT
completed-contract/JJ
method/NN
of/IN
accounting/NN
,/,
which/WDT
is/VBZ
used/VBN
by/IN
military/JJ
contractors/NNS
to/TO
reduce/VB
their/PRP$
tax/NN
burden/NN
./.
It/PRP
also/RB
drops/VBZ
a/DT
provision/NN
that/WDT
would/MD
have/VB
permitted/VBN
corporations/NNS
to/TO
use/VB
excess/JJ
pension/NN
funds/NNS
to/TO
pay/VB
health/NN
benefits/NNS
for/IN
current/JJ
retirees/NNS
./.
Also/RB
stricken/VBN
was/VBD
a/DT
fivefold/JJ
increase/NN
in/IN
the/DT
maximum/JJ
Occupational/NNP
Safety/NNP
and/CC
Health/NNP
Administration/NNP
penalties/NNS
,/,
which/WDT
would/MD
have/VB
raised/VBN
$/$
65/CD
million/CD
in/IN
fiscal/JJ
1990/CD
./.
A/DT
provision/NN
that/WDT
would/MD
have/VB
made/VBN
the/DT
Social/NNP
Security/NNP
Administration/NNP
an/DT
independent/JJ
agency/NN
was/VBD
excised/VBN
./.
The/DT
approval/NN
of/IN
the/DT
Senate/NNP
bill/NN
was/VBD
especially/RB
sweet/JJ
for/IN
Sen./NNP
Mitchell/NNP
,/,
who/WP
had/VBD
proposed/VBN
the/DT
streamlining/NN
./.
Mr./NNP
Mitchell/NNP
's/POS
relations/NNS
with/IN
Budget/NNP
Director/NNP
Darman/NNP
,/,
who/WP
pushed/VBD
for/IN
a/DT
capital-gains/NNS
cut/NN
to/TO
be/VB
added/VBN
to/TO
the/DT
measure/NN
,/,
have/VBP
been/VBN
strained/VBN
since/IN
Mr./NNP
Darman/NNP
chose/VBD
to/TO
bypass/VB
the/DT
Maine/NNP
Democrat/NNP
and/CC
deal/VB
with/IN
other/JJ
lawmakers/NNS
earlier/RBR
this/DT
year/NN
during/IN
a/DT
dispute/NN
over/IN
drug/NN
funding/NN
in/IN
the/DT
fiscal/JJ
1989/CD
supplemental/JJ
spending/NN
bill/NN
./.
The/DT
deficit/NN
reduction/NN
bill/NN
contains/VBZ
$/$
5.3/CD
billion/CD
in/IN
tax/NN
increases/NNS
in/IN
fiscal/JJ
1990/CD
,/,
and/CC
$/$
26/CD
billion/CD
over/IN
five/CD
years/NNS
./.
The/DT
revenue-raising/JJ
provisions/NNS
,/,
which/WDT
affect/VBP
mostly/RB
corporations/NNS
,/,
would/MD
:/:
--/:
Prevent/VB
companies/NNS
that/WDT
have/VBP
made/VBN
leveraged/JJ
buy-outs/NNS
from/IN
getting/VBG
federal/JJ
tax/NN
refunds/NNS
resulting/VBG
from/IN
losses/NNS
caused/VBN
by/IN
interest/NN
payments/NNS
on/IN
debt/NN
issued/VBN
to/TO
finance/VB
the/DT
buy-outs/NNS
,/,
effective/JJ
Aug./NNP
2/CD
,/,
1989/CD
./.
--/:
Require/VB
mutual/JJ
funds/NNS
to/TO
include/VB
in/IN
their/PRP$
taxable/JJ
income/NN
dividends/NNS
paid/VBN
to/TO
them/PRP
on/IN
the/DT
date/NN
that/IN
the/DT
dividends/NNS
are/VBP
declared/VBN
rather/RB
than/IN
received/VBN
,/,
effective/JJ
the/DT
day/NN
after/IN
the/DT
tax/NN
bill/NN
is/VBZ
enacted/VBN
./.
--/:
Close/VB
a/DT
loophole/NN
regarding/VBG
employee/NN
stock/NN
ownership/NN
plans/NNS
,/,
effective/JJ
June/NNP
6/CD
,/,
1989/CD
,/,
that/WDT
has/VBZ
been/VBN
exploited/VBN
by/IN
investment/NN
bankers/NNS
in/IN
corporate/JJ
takeovers/NNS
./.
The/DT
measure/NN
repeals/VBZ
a/DT
50/CD
%/NN
exclusion/NN
given/VBN
to/TO
banks/NNS
on/IN
the/DT
interest/NN
from/IN
loans/NNS
used/VBN
to/TO
acquire/VB
securities/NNS
for/IN
an/DT
ESOP/NNP
,/,
if/IN
the/DT
ESOP/NNP
owns/VBZ
less/JJR
than/IN
30/CD
%/NN
of/IN
the/DT
employer/NN
's/POS
stock/NN
./.
--/:
Curb/VB
junk/NN
bonds/NNS
by/IN
ending/VBG
tax/NN
benefits/NNS
for/IN
certain/JJ
securities/NNS
,/,
such/JJ
as/IN
zero-coupon/JJ
bonds/NNS
,/,
that/WDT
postpone/VBP
cash/NN
interest/NN
payments/NNS
./.
--/:
Raise/VB
$/$
851/CD
million/CD
by/IN
suspending/VBG
for/IN
one/CD
year/NN
an/DT
automatic/JJ
reduction/NN
in/IN
airport/NN
and/CC
airway/NN
taxes/NNS
./.
--/:
Speed/VB
up/RP
the/DT
collection/NN
of/IN
the/DT
payroll/NN
tax/NN
from/IN
large/JJ
companies/NNS
,/,
effective/JJ
August/NNP
1990/CD
./.
--/:
Impose/VB
a/DT
tax/NN
on/IN
ozone-depleting/JJ
chemicals/NNS
,/,
such/JJ
as/IN
those/DT
used/VBN
in/IN
air/NN
conditioners/NNS
and/CC
in/IN
Styrofoam/NNP
,/,
beginning/VBG
at/IN
$/$
1.10/CD
a/DT
pound/NN
starting/VBG
next/JJ
year/NN
./.
--/:
Withhold/VB
income/NN
taxes/NNS
from/IN
the/DT
paychecks/NNS
of/IN
certain/JJ
farm/NN
workers/NNS
currently/RB
exempt/JJ
from/IN
withholding/NN
./.
--/:
Change/VB
the/DT
collection/NN
of/IN
gasoline/NN
excise/NN
taxes/NNS
to/TO
weekly/RB|JJ
from/IN
semimonthly/RB|JJ
,/,
effective/JJ
next/IN
year/NN
./.
--/:
Restrict/VB
the/DT
ability/NN
of/IN
real/JJ
estate/NN
owners/NNS
to/TO
escape/VB
taxes/NNS
by/IN
swapping/VBG
one/CD
piece/NN
of/IN
property/NN
for/IN
another/DT
instead/RB
of/IN
selling/VBG
it/PRP
for/IN
cash/NN
./.
--/:
Increase/VB
to/TO
$/$
6/CD
a/DT
person/NN
from/IN
$/$
3/CD
the/DT
international/JJ
air-passenger/NN
departure/NN
tax/NN
,/,
and/CC
impose/VB
a/DT
$/$
3-a-person/JJ
tax/NN
on/IN
international/JJ
departures/NNS
by/IN
commercial/JJ
ships/NNS
./.
The/DT
measure/NN
also/RB
includes/VBZ
spending/NN
cuts/NNS
and/CC
increases/NNS
in/IN
federal/JJ
fees/NNS
./.
Among/IN
its/PRP$
provisions/NNS
:/:
--/:
Reduction/NNP
of/IN
Medicare/NNP
spending/NN
in/IN
fiscal/JJ
1990/CD
by/IN
some/DT
$/$
2.8/CD
billion/CD
,/,
in/IN
part/NN
by/IN
curbing/VBG
increases/NNS
in/IN
reimbursements/NNS
to/TO
physicians/NNS
./.
The/DT
plan/NN
would/MD
impose/VB
a/DT
brief/JJ
freeze/NN
on/IN
physician/NN
fees/NNS
next/IN
year/NN
./.
--/:
Removal/NNP
of/IN
the/DT
U.S./NNP
Postal/NNP
Service/NNP
's/POS
operating/NN
budget/NN
from/IN
the/DT
federal/JJ
budget/NN
,/,
reducing/VBG
the/DT
deficit/NN
by/IN
$/$
1.77/CD
billion/CD
./.
A/DT
similar/JJ
provision/NN
is/VBZ
in/IN
the/DT
House/NNP
version/NN
./.
--/:
Authority/NNP
for/IN
the/DT
Federal/NNP
Aviation/NNP
Administration/NNP
to/TO
raise/VB
$/$
239/CD
million/CD
by/IN
charging/VBG
fees/NNS
for/IN
commercial/JJ
airline-landing/JJ
rights/NNS
at/IN
New/NNP
York/NNP
's/POS
LaGuardia/NNP
and/CC
John/NNP
F./NNP
Kennedy/NNP
International/NNP
Airports/NNP
,/,
O'Hare/NNP
International/NNP
Airport/NNP
in/IN
Chicago/NNP
and/CC
National/NNP
Airport/NNP
in/IN
Washington/NNP
./.
--/:
Increases/NNS
in/IN
Nuclear/NNP
Regulatory/NNP
Commission/NNP
fees/NNS
totaling/VBG
$/$
54/CD
million/CD
./.
--/:
Direction/NN
to/TO
the/DT
U.S./NNP
Coast/NNP
Guard/NNP
to/TO
collect/VB
$/$
50/CD
million/CD
from/IN
users/NNS
of/IN
Coast/NNP
Guard/NNP
services/NNS
./.
--/:
Raising/VBG
an/DT
additional/JJ
$/$
43/CD
million/CD
by/IN
increasing/VBG
existing/JJ
Federal/NNP
Communications/NNP
Commission/NNP
fees/NNS
and/CC
penalties/NNS
and/CC
establishing/VBG
new/JJ
fees/NNS
for/IN
amateur/JJ
radio/NN
operators/NNS
,/,
ship/NN
stations/NNS
and/CC
mobile/JJ
radio/NN
facilities/NNS
./.
John/NNP
E./NNP
Yang/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
In/IN
response/NN
to/TO
your/PRP$
overly/RB
optimistic/JJ
,/,
outdated/JJ
piece/NN
on/IN
how/WRB
long/RB
unemployment/NN
lasts/VBZ
(/(
People/NNS
Patterns/NNS
,/,
Sept./NNP
20/CD
I/PRP
am/VBP
in/IN
the/DT
communications/NN
field/NN
,/,
above/IN
entry/NN
level/NN
./.
I/PRP
was/VBD
laid/VBN
off/RP
in/IN
August/NNP
1988/CD
,/,
and/CC
after/IN
a/DT
thorough/JJ
and/CC
exhausting/JJ
job/NN
search/NN
,/,
was/VBD
hired/VBN
in/IN
August/NNP
1989/CD
./.
My/PRP$
unemployment/NN
insurance/NN
ran/VBD
out/RP
before/IN
I/PRP
found/VBD
a/DT
job/NN
;/:
I/PRP
found/VBD
cutbacks/NNS
and/CC
layoffs/NNS
in/IN
many/JJ
companies/NNS
./.
The/DT
statistics/NNS
quoted/VBN
by/IN
the/DT
``/``
new/JJ
''/''
Census/NNP
Bureau/NNP
report/NN
1984/CD
to/TO
1986/CD
date/NN
,/,
certainly/RB
as/IN
an/DT
average/NN
for/IN
the/DT
Northeast/NNP
,/,
and/CC
possibly/RB
for/IN
the/DT
rest/NN
of/IN
the/DT
country/NN
./.
I/PRP
think/VBP
what/WP
bothered/VBD
me/PRP
most/RBS
about/IN
the/DT
piece/NN
was/VBD
that/IN
there/EX
seemed/VBD
to/TO
be/VB
an/DT
underlying/JJ
attitude/NN
to/TO
tell/VB
your/PRP$
readers/NNS
all/DT
is/VBZ
well/JJ
--/:
if/IN
you/PRP
're/VBP
getting/VBG
laid/VBN
off/RP
do/VBP
n't/RB
worry/VB
,/,
and/CC
if/IN
you/PRP
're/VBP
unemployed/JJ
,/,
it/PRP
's/VBZ
a/DT
seller/NN
's/POS
market/NN
./.
To/TO
top/VB
it/PRP
off/RP
,/,
you/PRP
captioned/VBD
the/DT
graph/NN
showing/VBG
the/DT
average/JJ
number/NN
of/IN
months/NNS
in/IN
a/DT
job/NN
search/NN
as/IN
``/``
Time/NN
Off/RP
./.
''/''
Are/VBP
you/PRP
kidding/VBG
?/.
Looking/VBG
for/IN
a/DT
job/NN
was/VBD
one/CD
of/IN
the/DT
most/RBS
anxious/JJ
periods/NNS
of/IN
my/PRP$
life/NN
--/:
and/CC
is/VBZ
for/IN
most/JJS
people/NNS
./.
Your/PRP$
paper/NN
needs/VBZ
a/DT
serious/JJ
reality/NN
check/NN
./.
Reva/NNP
Levin/NNP
Cambridge/NNP
,/,
Mass/NNP
./.
BULL/NNP
HN/NNP
INFORMATION/NNP
SYSTEMS/NNP
Inc./NNP
is/VBZ
a/DT
U.S./NNP
majority-owned/JJ
unit/NN
of/IN
Cie./NNP
des/NNP
Machines/NNP
Bull/NNP
./.
In/IN
Friday/NNP
's/POS
edition/NN
,/,
the/DT
name/NN
of/IN
the/DT
unit/NN
was/VBD
misstated/VBN
./.
Bull/NNP
's/POS
Chairman/NN
to/TO
Use/VB
U.S./NNP
Acquisitions/NNS
to/TO
Lift/VB
Computer/NN
Maker/NN
's/POS
World/NN
Stature/NN
''/''
--/:
WSJ/NNP
Oct./NNP
13/CD
,/,
1989/CD
)/)
Moody/NNP
's/POS
Investors/NNP
Service/NNP
said/VBD
it/PRP
reduced/VBD
its/PRP$
rating/NN
on/IN
$/$
165/CD
million/CD
of/IN
subordinated/JJ
debt/NN
of/IN
this/DT
Beverly/NNP
Hills/NNP
,/,
Calif./NNP
,/,
thrift/NN
,/,
citing/VBG
turmoil/NN
in/IN
the/DT
market/NN
for/IN
low-grade/JJ
,/,
high-yield/JJ
securities/NNS
./.
The/DT
agency/NN
said/VBD
it/PRP
reduced/VBD
its/PRP$
rating/NN
on/IN
the/DT
thrift/NN
's/POS
subordinated/JJ
debt/NN
to/TO
B-2/JJ
from/IN
Ba-2/JJ
and/CC
will/MD
keep/VB
the/DT
debt/NN
under/IN
review/NN
for/IN
possible/JJ
further/JJ
downgrade/NN
./.
Columbia/NNP
Savings/NNP
is/VBZ
a/DT
major/JJ
holder/NN
of/IN
so-called/JJ
junk/NN
bonds/NNS
./.
New/JJ
federal/JJ
legislation/NN
requires/VBZ
that/IN
all/DT
thrifts/NNS
divest/VBP
themselves/PRP
of/IN
such/JJ
speculative/JJ
securities/NNS
over/IN
a/DT
period/NN
of/IN
years/NNS
./.
Columbia/NNP
Savings/NNP
officials/NNS
were/VBD
n't/RB
available/JJ
for/IN
comment/NN
on/IN
the/DT
downgrade/NN
./.
FRANKLIN/NNP
SAVINGS/NNP
ASSOCIATION/NNP
Ottawa/NNP
,/,
Kan./NNP
Moody/NNP
's/POS
Investors/NNP
Service/NNP
Inc./NNP
said/VBD
it/PRP
downgraded/VBD
its/PRP$
rating/NN
to/TO
B-2/JJ
from/IN
Ba-3/JJ
on/IN
less/JJR
than/IN
$/$
20/CD
million/CD
of/IN
this/DT
thrift/NN
's/POS
senior/JJ
subordinated/JJ
notes/NNS
./.
The/DT
rating/NN
concern/NN
said/VBD
Franklin/NNP
's/POS
``/``
troubled/JJ
diversification/NN
record/NN
in/IN
the/DT
securities/NNS
business/NN
''/''
was/VBD
one/CD
reason/NN
for/IN
the/DT
downgrade/NN
,/,
citing/VBG
the/DT
troubles/NNS
at/IN
its/PRP$
L.F./NNP
Rothschild/NNP
subsidiary/NN
and/CC
the/DT
possible/JJ
sale/NN
of/IN
other/JJ
subsidiaries/NNS
./.
``/``
They/PRP
perhaps/RB
had/VBD
concern/NN
that/IN
we/PRP
were/VBD
getting/VBG
out/IN
of/IN
all/PDT
these/DT
,/,
''/''
said/VBD
Franklin/NNP
President/NNP
Duane/NNP
H./NNP
Hall/NNP
./.
``/``
I/PRP
think/VBP
it/PRP
was/VBD
a/DT
little/JJ
premature/JJ
on/IN
their/PRP$
part/NN
./.
''/''
Just/RB
when/WRB
it/PRP
seemed/VBD
safe/JJ
to/TO
go/VB
back/RB
into/IN
stocks/NNS
,/,
Wall/NNP
Street/NNP
suffered/VBD
another/DT
severe/JJ
attack/NN
of/IN
nerves/NNS
./.
Does/VBZ
this/DT
signal/VB
another/DT
Black/NNP
Monday/NNP
is/VBZ
coming/VBG
?/.
Or/CC
is/VBZ
this/DT
an/DT
extraordinary/JJ
buying/NN
opportunity/NN
,/,
just/RB
like/IN
Oct./NNP
19/CD
,/,
1987/CD
,/,
eventually/RB
turned/VBD
out/RP
to/TO
be/VB
?/.
Here/RB
's/VBZ
what/WP
several/JJ
leading/JJ
market/NN
experts/NNS
and/CC
money/NN
managers/NNS
say/VBP
about/IN
Friday/NNP
's/POS
action/NN
,/,
what/WP
happens/VBZ
next/RB
and/CC
what/WP
investors/NNS
should/MD
do/VB
./.
Joseph/NNP
Granville/NNP
./.
``/``
I/PRP
'm/VBP
the/DT
only/JJ
one/CD
who/WP
said/VBD
there/EX
would/MD
be/VB
an/DT
October/NNP
massacre/NN
,/,
all/RB
through/IN
late/JJ
August/NNP
and/CC
September/NNP
,/,
''/''
says/VBZ
Mr./NNP
Granville/NNP
,/,
once/RB
a/DT
widely/RB
followed/VBN
market/NN
guru/NN
and/CC
still/RB
a/DT
well-known/JJ
newsletter/NN
writer/NN
./.
``/``
Everyone/NN
will/MD
tell/VB
you/PRP
that/IN
this/DT
time/NN
is/VBZ
different/JJ
from/IN
1987/CD
,/,
''/''
he/PRP
says/VBZ
./.
``/``
Well/RB
,/,
in/IN
some/DT
ways/NNS
it/PRP
is/VBZ
different/JJ
,/,
but/CC
technically/RB
it/PRP
is/VBZ
just/RB
the/DT
same/JJ
./.
If/IN
you/PRP
're/VBP
a/DT
technician/NN
,/,
you/PRP
obey/VBP
the/DT
signals/NNS
./.
Right/RB
now/RB
they/PRP
're/VBP
telling/VBG
me/PRP
to/TO
get/VB
the/DT
hell/NN
out/RP
and/CC
stay/VB
out/RB
./.
I/PRP
see/VBP
no/DT
major/JJ
support/NN
until/IN
2200/CD
./.
I/PRP
see/VBP
a/DT
possibility/NN
of/IN
going/VBG
to/TO
2200/CD
this/DT
month/NN
./.
''/''
Mr./NNP
Granville/NNP
says/VBZ
he/PRP
would/MD
n't/RB
even/RB
think/VB
of/IN
buying/VBG
until/IN
at/IN
least/JJS
600/CD
to/TO
700/CD
stocks/NNS
have/VBP
hit/VBN
52-week/JJ
lows/NNS
;/:
about/RB
100/CD
stocks/NNS
hit/VBD
new/JJ
lows/NNS
Friday/NNP
./.
``/``
Most/JJS
people/NNS
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
have/VBP
no/DT
idea/NN
what/WP
a/DT
massacre/NN
pattern/NN
looks/VBZ
like/IN
./.
''/''
Elaine/NNP
Garzarelli/NNP
./.
A/DT
quantitative/JJ
analyst/NN
with/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
,/,
Ms./NNP
Garzarelli/NNP
had/VBD
warned/VBN
clients/NNS
to/TO
take/VB
their/PRP$
money/NN
out/IN
of/IN
the/DT
market/NN
before/IN
the/DT
1987/CD
crash/NN
./.
Friday/NNP
's/POS
big/JJ
drop/NN
,/,
she/PRP
says/VBZ
,/,
``/``
was/VBD
not/RB
a/DT
crash/NN
./.
This/DT
was/VBD
an/DT
October/NNP
massacre/NN
''/''
like/IN
those/DT
that/WDT
occurred/VBD
in/IN
1978/CD
and/CC
1979/CD
./.
Now/RB
,/,
as/IN
in/IN
those/DT
two/CD
years/NNS
,/,
her/PRP$
stock/NN
market/NN
indicators/NNS
are/VBP
positive/JJ
./.
So/IN
she/PRP
thinks/VBZ
the/DT
damage/NN
will/MD
be/VB
short-lived/JJ
and/CC
contained/JJ
./.
``/``
Those/DT
corrections/NNS
lasted/VBD
one/CD
to/TO
four/CD
weeks/NNS
and/CC
took/VBD
the/DT
market/NN
10%-12/CD
%/NN
down/RB
,/,
''/''
she/PRP
says/VBZ
./.
``/``
This/DT
is/VBZ
exactly/RB
the/DT
same/JJ
thing/NN
,/,
as/RB
far/RB
as/IN
I/PRP
'm/VBP
concerned/VBN
./.
''/''
Thus/RB
,/,
she/PRP
says/VBZ
,/,
if/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
dropped/VBD
below/IN
2450/CD
,/,
``/``
It/PRP
would/MD
just/RB
be/VB
a/DT
fluke/NN
./.
My/PRP$
advice/NN
is/VBZ
to/TO
buy/VB
./.
''/''
As/IN
she/PRP
calculates/VBZ
it/PRP
,/,
the/DT
average/JJ
stock/NN
now/RB
sells/VBZ
for/IN
about/RB
12.5/CD
times/NNS
companies/NNS
'/POS
earnings/NNS
./.
She/PRP
says/VBZ
that/DT
ratio/NN
could/MD
climb/VB
to/TO
14.5/CD
,/,
given/VBN
current/JJ
interest/NN
rates/NNS
,/,
and/CC
still/RB
be/VB
within/IN
the/DT
range/NN
of/IN
``/``
fair/JJ
value/NN
./.
''/''
Ned/NNP
Davis/NNP
./.
Friday/NNP
's/POS
fall/NN
marks/VBZ
the/DT
start/NN
of/IN
a/DT
bear/NN
market/NN
,/,
says/VBZ
Mr./NNP
Davis/NNP
,/,
president/NN
of/IN
Ned/NNP
Davis/NNP
Research/NNP
Inc/NNP
./.
But/CC
Mr./NNP
Davis/NNP
,/,
whose/WP$
views/NNS
are/VBP
widely/RB
respected/VBN
by/IN
money/NN
managers/NNS
,/,
says/VBZ
he/PRP
expects/VBZ
no/DT
1987-style/JJ
crash/NN
./.
``/``
There/EX
was/VBD
a/DT
unique/JJ
combination/NN
in/IN
1987/CD
,/,
''/''
he/PRP
says/VBZ
./.
``/``
Margin/NN
debt/NN
was/VBD
at/IN
a/DT
record/JJ
high/NN
./.
There/EX
was/VBD
tremendous/JJ
public/JJ
enthusiasm/NN
for/IN
stock/NN
mutual/JJ
funds/NNS
./.
The/DT
main/JJ
thing/NN
was/VBD
portfolio/NN
insurance/NN
,/,
''/''
a/DT
mechanical/JJ
trading/NN
system/NN
intended/VBN
to/TO
protect/VB
an/DT
investor/NN
against/IN
losses/NNS
./.
``/``
A/DT
hundred/CD
billion/CD
dollars/NNS
in/IN
stock/NN
was/VBD
subject/JJ
''/''
to/TO
it/PRP
./.
In/IN
1987/CD
,/,
such/JJ
selling/NN
contributed/VBD
to/TO
a/DT
snowball/NN
effect/NN
./.
Today/NN
could/MD
even/RB
be/VB
an/DT
up/JJ
day/NN
,/,
Mr./NNP
Davis/NNP
says/VBZ
,/,
if/IN
major/JJ
brokerage/NN
firms/NNS
agree/VBP
to/TO
refrain/VB
from/IN
program/NN
trading/NN
./.
Over/IN
the/DT
next/JJ
several/JJ
months/NNS
,/,
though/RB
,/,
he/PRP
says/VBZ
things/NNS
look/VBP
bad/JJ
./.
``/``
I/PRP
think/VBP
the/DT
market/NN
will/MD
be/VB
heading/VBG
down/RB
into/IN
November/NNP
,/,
''/''
he/PRP
says/VBZ
./.
``/``
We/PRP
will/MD
probably/RB
have/VB
a/DT
year-end/JJ
rally/NN
,/,
and/CC
then/RB
go/VB
down/RB
again/RB
./.
Sort/NN
of/IN
a/DT
two-step/JJ
bear/NN
market/NN
./.
''/''
He/PRP
expects/VBZ
the/DT
downturn/NN
to/TO
carry/VB
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
down/RB
to/TO
around/IN
2000/CD
sometime/RB
next/JJ
year/NN
./.
``/``
That/DT
would/MD
be/VB
a/DT
normal/JJ
bear/NN
market/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
I/PRP
guess/VBP
that/IN
's/POS
my/PRP$
forecast/NN
./.
''/''
Leon/NNP
G./NNP
Cooperman/NNP
./.
``/``
I/PRP
do/VBP
n't/RB
think/VB
the/DT
market/NN
is/VBZ
going/VBG
through/IN
another/DT
October/NNP
'87/CD
./.
I/PRP
do/VBP
n't/RB
think/VB
that/DT
's/VBZ
the/DT
case/NN
at/IN
all/DT
,/,
''/''
says/VBZ
Mr./NNP
Cooperman/NNP
,/,
a/DT
partner/NN
at/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
and/CC
chairman/NN
of/IN
Goldman/NNP
Sachs/NNP
Asset/NNP
Management/NNP
./.
Mr./NNP
Cooperman/NNP
sees/VBZ
this/DT
as/IN
a/DT
good/JJ
time/NN
to/TO
pick/VB
up/RP
bargains/NNS
,/,
but/CC
he/PRP
does/VBZ
n't/RB
think/VB
there/EX
's/VBZ
any/DT
need/NN
to/TO
rush/VB
./.
``/``
I/PRP
expect/VBP
the/DT
market/NN
to/TO
open/VB
weaker/JJR
Monday/NNP
,/,
but/CC
then/RB
it/PRP
should/MD
find/VB
some/DT
stability/NN
./.
''/''
He/PRP
ticks/VBZ
off/RP
several/JJ
major/JJ
differences/NNS
between/IN
now/RB
and/CC
two/CD
years/NNS
ago/RB
./.
Unlike/IN
1987/CD
,/,
interest/NN
rates/NNS
have/VBP
been/VBN
falling/VBG
this/DT
year/NN
./.
Unlike/IN
1987/CD
,/,
the/DT
dollar/NN
has/VBZ
been/VBN
strong/JJ
./.
And/CC
unlike/IN
1987/CD
,/,
the/DT
economy/NN
does/VBZ
n't/RB
appear/VB
to/TO
be/VB
in/IN
any/DT
danger/NN
of/IN
overheating/VBG
./.
But/CC
the/DT
economy/NN
's/POS
slower/JJR
growth/NN
this/DT
year/NN
also/RB
means/VBZ
the/DT
outlook/NN
for/IN
corporate/JJ
profits/NNS
``/``
is/VBZ
n't/RB
good/JJ
,/,
''/''
he/PRP
says/VBZ
./.
``/``
So/IN
it/PRP
's/VBZ
a/DT
very/RB
mixed/JJ
bag/NN
./.
''/''
Thus/RB
,/,
he/PRP
concludes/VBZ
,/,
``/``
This/DT
is/VBZ
not/RB
a/DT
good/JJ
environment/NN
to/TO
be/VB
fully/RB
invested/VBN
''/''
in/IN
stocks/NNS
./.
``/``
If/IN
I/PRP
had/VBD
come/VBN
into/IN
Friday/NNP
on/IN
margin/NN
or/CC
with/IN
very/RB
little/JJ
cash/NN
in/IN
the/DT
portfolios/NNS
,/,
I/PRP
would/MD
not/RB
do/VB
any/DT
buying/NN
./.
But/CC
we/PRP
came/VBD
into/IN
Friday/NNP
with/IN
a/DT
conservative/JJ
portfolio/NN
,/,
so/IN
I/PRP
would/MD
look/VB
to/TO
do/VB
some/DT
modest/JJ
buying/NN
''/''
on/IN
behalf/NN
of/IN
clients/NNS
./.
``/``
We/PRP
're/VBP
going/VBG
to/TO
look/VB
for/IN
some/DT
of/IN
the/DT
better-known/JJ
companies/NNS
that/WDT
got/VBD
clocked/VBN
''/''
Friday/NNP
./.
John/NNP
Kenneth/NNP
Galbraith/NNP
./.
``/``
This/DT
is/VBZ
the/DT
latest/JJS
manifestation/NN
of/IN
the/DT
capacity/NN
of/IN
the/DT
financial/JJ
community/NN
for/IN
recurrent/JJ
insanity/NN
,/,
''/''
says/VBZ
Mr./NNP
Galbraith/NNP
,/,
an/DT
economist/NN
./.
``/``
I/PRP
see/VBP
this/DT
as/IN
a/DT
reaction/NN
to/TO
the/DT
whole/JJ
junk/NN
bond/NN
explosion/NN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
The/DT
explosion/NN
of/IN
junk/NN
bonds/NNS
and/CC
takeovers/NNS
has/VBZ
lodged/VBN
a/DT
lot/NN
of/IN
insecure/JJ
securities/NNS
in/IN
the/DT
hands/NNS
of/IN
investors/NNS
and/CC
loaded/VBD
the/DT
corporations/NNS
that/WDT
are/VBP
the/DT
objects/NNS
of/IN
takeovers/NNS
or/CC
feared/JJ
takeovers/NNS
with/IN
huge/JJ
amounts/NNS
of/IN
debt/NN
rather/RB
than/IN
equity/NN
./.
This/DT
has/VBZ
both/CC
made/VBN
investors/NNS
uneasy/JJ
and/CC
the/DT
corporations/NNS
more/RBR
vulnerable/JJ
./.
''/''
Nevertheless/RB
,/,
he/PRP
says/VBZ
a/DT
depression/NN
does/VBZ
n't/RB
appear/VB
likely/JJ
./.
``/``
There/EX
is/VBZ
more/JJR
resiliency/NN
in/IN
the/DT
economy/NN
at/IN
large/JJ
than/IN
we/PRP
commonly/RB
suppose/VBP
,/,
''/''
he/PRP
says/VBZ
./.
``/``
It/PRP
takes/VBZ
more/JJR
error/NN
now/RB
to/TO
have/VB
a/DT
major/JJ
depression/NN
than/IN
back/RB
in/IN
the/DT
Thirties/NNS
--/:
much/RB
as/IN
the/DT
financial/JJ
community/NN
and/CC
the/DT
government/NN
may/MD
try/VB
./.
''/''
Mario/NNP
Gabelli/NNP
./.
New/NNP
York/NNP
money/NN
manager/NN
Mario/NNP
Gabelli/NNP
,/,
an/DT
expert/NN
at/IN
spotting/VBG
takeover/NN
candidates/NNS
,/,
says/VBZ
that/IN
takeovers/NNS
are/VBP
n't/RB
totally/RB
gone/VBN
./.
``/``
Companies/NNS
are/VBP
still/RB
going/VBG
to/TO
buy/VB
companies/NNS
around/IN
the/DT
world/NN
,/,
''/''
he/PRP
says/VBZ
./.
Examples/NNS
are/VBP
``/``
Ford/NNP
looking/VBG
at/IN
Jaguar/NNP
,/,
BellSouth/NNP
looking/VBG
at/IN
LIN/NNP
Broadcasting/NNP
./.
''/''
These/DT
sorts/NNS
of/IN
takeovers/NNS
do/VBP
n't/RB
require/VB
junk/NN
bonds/NNS
or/CC
big/JJ
bank/NN
loans/NNS
to/TO
finance/VB
them/PRP
,/,
so/IN
Mr./NNP
Gabelli/NNP
figures/NNS
they/PRP
will/MD
continue/VB
./.
``/``
The/DT
market/NN
was/VBD
up/RB
35/CD
%/NN
since/IN
{/(
President/NNP
Bush/NNP
took/VBD
office/NN
,/,
''/''
Mr./NNP
Gabelli/NNP
says/VBZ
,/,
so/IN
a/DT
correction/NN
was/VBD
to/TO
be/VB
expected/VBN
./.
He/PRP
thinks/VBZ
another/DT
crash/NN
is/VBZ
``/``
unlikely/JJ
,/,
''/''
and/CC
says/VBZ
he/PRP
was/VBD
``/``
nibbling/VBG
at/IN
''/''
selected/JJ
stocks/NNS
during/IN
Friday/NNP
's/POS
plunge/NN
./.
``/``
Stocks/NNS
that/WDT
were/VBD
thrown/VBN
out/RP
just/RB
on/IN
an/DT
emotional/JJ
basis/NN
are/VBP
a/DT
great/JJ
opportunity/NN
this/DT
week/NN
for/IN
guys/NNS
like/IN
me/PRP
,/,
''/''
he/PRP
says/VBZ
./.
Jim/NNP
Rogers/NNP
./.
``/``
It/PRP
seems/VBZ
to/TO
me/PRP
that/IN
this/DT
is/VBZ
the/DT
pin/NN
that/WDT
has/VBZ
finally/RB
pricked/VBN
the/DT
balloon/NN
,/,
''/''
says/VBZ
Mr./NNP
Rogers/NNP
,/,
a/DT
professor/NN
of/IN
finance/NN
at/IN
Columbia/NNP
University/NNP
and/CC
former/JJ
co-manager/NN
of/IN
one/CD
of/IN
the/DT
most/RBS
successful/JJ
hedge/NN
funds/NNS
in/IN
history/NN
,/,
Quantum/NNP
Fund/NNP
./.
He/PRP
sees/VBZ
``/``
economic/JJ
problems/NNS
,/,
financial/JJ
problems/NNS
''/''
ahead/RB
for/IN
the/DT
U.S./NNP
,/,
with/IN
a/DT
fairly/RB
strong/JJ
possibility/NN
of/IN
a/DT
recession/NN
./.
``/``
Friday/NNP
you/PRP
could/MD
n't/RB
sell/VB
dollars/NNS
,/,
''/''
he/PRP
says/VBZ
./.
Dealers/NNS
``/``
would/MD
give/VB
you/PRP
a/DT
quote/NN
,/,
but/CC
then/RB
refuse/VB
to/TO
make/VB
the/DT
trade/NN
./.
''/''
If/IN
the/DT
dollar/NN
stays/VBZ
weak/JJ
,/,
he/PRP
says/VBZ
,/,
that/WDT
will/MD
add/VB
to/TO
inflationary/JJ
pressures/NNS
in/IN
the/DT
U.S./NNP
and/CC
make/VB
it/PRP
hard/JJ
for/IN
the/DT
Federal/NNP
Reserve/NNP
Board/NNP
to/TO
ease/VB
interest/NN
rates/NNS
very/RB
much/RB
./.
Mr./NNP
Rogers/NNP
wo/MD
n't/RB
decide/VB
what/WP
to/TO
do/VB
today/NN
until/IN
he/PRP
sees/VBZ
how/WRB
the/DT
London/NNP
and/CC
Tokyo/NNP
markets/NNS
go/VBP
./.
He/PRP
recommends/VBZ
that/IN
investors/NNS
sell/VB
takeover-related/JJ
stocks/NNS
,/,
but/CC
hang/VB
on/RP
to/TO
some/DT
other/JJ
stocks/NNS
--/:
especially/RB
utilities/NNS
,/,
which/WDT
often/RB
do/VBP
well/RB
during/IN
periods/NNS
of/IN
economic/JJ
weakness/NN
./.
Frank/NNP
Curzio/NNP
./.
Many/JJ
people/NNS
now/RB
claim/VBP
to/TO
have/VB
predicted/VBN
the/DT
1987/CD
crash/NN
./.
Queens/NNP
newsletter/NN
writer/NN
Francis/NNP
X./NNP
Curzio/NNP
actually/RB
did/VBD
it/PRP
:/:
He/PRP
stated/VBD
in/IN
writing/NN
in/IN
September/NNP
1987/CD
that/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
was/VBD
likely/JJ
to/TO
decline/VB
about/RB
500/CD
points/NNS
the/DT
following/JJ
month/NN
./.
Mr./NNP
Curzio/NNP
says/VBZ
what/WP
happens/VBZ
now/RB
will/MD
depend/VB
a/DT
good/JJ
deal/NN
on/IN
the/DT
Federal/NNP
Reserve/NNP
Board/NNP
./.
If/IN
it/PRP
promptly/RB
cuts/VBZ
the/DT
discount/NN
rate/NN
it/PRP
charges/VBZ
on/IN
loans/NNS
to/TO
banks/NNS
,/,
he/PRP
says/VBZ
,/,
``/``
That/DT
could/MD
quiet/VB
things/NNS
down/RP
./.
''/''
If/IN
not/RB
,/,
``/``
We/PRP
could/MD
go/VB
to/TO
2200/CD
very/RB
soon/RB
./.
''/''
Frank/NNP
W./NNP
Terrizzi/NNP
./.
Stock/NN
prices/NNS
``/``
would/MD
still/RB
have/VB
to/TO
go/VB
down/RB
some/DT
additional/JJ
amount/NN
before/IN
we/PRP
become/VBP
positive/JJ
on/IN
stocks/NNS
,/,
''/''
says/VBZ
Mr./NNP
Terrizzi/NNP
,/,
president/NN
and/CC
managing/VBG
director/NN
of/IN
Renaissance/NNP
Investment/NNP
Management/NNP
Inc./NNP
in/IN
Cincinnati/NNP
./.
Renaissance/NNP
,/,
which/WDT
manages/VBZ
about/RB
$/$
1.8/CD
billion/CD
,/,
drew/VBD
stiff/JJ
criticism/NN
from/IN
many/JJ
clients/NNS
earlier/RBR
this/DT
year/NN
because/IN
it/PRP
pulled/VBD
entirely/RB
out/IN
of/IN
stocks/NNS
at/IN
the/DT
beginning/NN
of/IN
the/DT
year/NN
and/CC
thus/RB
missed/VBD
a/DT
strong/JJ
rally/NN
./.
Renaissance/NNP
is/VBZ
keeping/VBG
its/PRP$
money/NN
entirely/RB
in/IN
cash/NN
equivalents/NNS
,/,
primarily/RB
U.S./NNP
Treasury/NNP
bills/NNS
./.
``/``
T-bills/NNS
probably/RB
are/VBP
the/DT
right/JJ
place/NN
to/TO
be/VB
,/,
''/''
he/PRP
says/VBZ
./.
story/NN
:/:
``/``
Your/PRP$
Money/NN
Matters/VBZ
:/:
Unloading/VBG
Stocks/NNS
Worst/JJS
Step/NN
to/TO
Take/VB
''/''
--/:
WSJ/NNP
Oct./NNP
16/CD
,/,
1989/CD
)/)
Regarding/VBG
the/DT
Oct./NNP
3/CD
letter/NN
to/TO
the/DT
editor/NN
from/IN
Rep./NNP
Tom/NNP
Lantos/NNP
,/,
chairman/NN
of/IN
the/DT
House/NNP
Subcommittee/NNP
on/IN
Employment/NNP
and/CC
Housing/NNP
,/,
alleging/VBG
:/:
1/LS
./.
That/IN
your/PRP$
Sept./NNP
28/CD
editorial/NN
``/``
Kangaroo/NN
Committees/NNS
''/''
was/VBD
factually/RB
inaccurate/JJ
and/CC
deliberately/RB
misleading/JJ
./.
I/PRP
thought/VBD
your/PRP$
editorial/NN
was/VBD
factually/RB
accurate/JJ
and/CC
deliberately/RB
elucidative/JJ
./.
2/LS
./.
That/IN
Mr./NNP
Lantos/NNP
supported/VBD
the/DT
rights/NNS
of/IN
the/DT
witnesses/NNS
to/TO
take/VB
the/DT
Fifth/NNP
Amendment/NNP
./.
Yes/UH
,/,
he/PRP
did/VBD
./.
As/IN
I/PRP
watched/VBD
him/PRP
on/IN
C-Span/NNP
,/,
I/PRP
heard/VBD
him/PRP
speak/VB
those/DT
lovely/JJ
words/NNS
about/IN
the/DT
Bill/NNP
of/IN
Rights/NNPS
,/,
which/WDT
he/PRP
quotes/VBZ
from/IN
the/DT
transcript/NN
of/IN
the/DT
hearings/NNS
./.
He/PRP
did/VBD
repeat/VB
those/DT
nice/JJ
platitudes/NNS
several/JJ
times/NNS
as/IN
an/DT
indication/NN
of/IN
his/PRP$
support/NN
for/IN
the/DT
Constitution/NNP
./.
He/PRP
used/VBD
about/RB
56/CD
words/NNS
defending/VBG
the/DT
witnesses/NNS
'/POS
constitutional/JJ
rights/NNS
./.
Unfortunately/RB
,/,
by/IN
my/PRP$
rough/JJ
guess/NN
,/,
he/PRP
used/VBD
better/JJR
than/IN
5,000/CD
words/NNS
heaping/VBG
scorn/NN
on/IN
the/DT
witnesses/NNS
for/IN
exercising/VBG
the/DT
Fifth/NNP
./.
He/PRP
sandwiched/VBD
his/PRP$
praise/NN
of/IN
constitutional/JJ
meat/NN
between/IN
large/JJ
loaves/NNS
of/IN
bilious/JJ
commentary/NN
./.
As/IN
your/PRP$
editorial/NN
rightly/RB
pointed/VBD
out/RP
,/,
Samuel/NNP
Pierce/NNP
,/,
former/JJ
HUD/NNP
secretary/NN
,/,
and/CC
Lance/NNP
Wilson/NNP
,/,
Mr./NNP
Pierce/NNP
's/POS
former/JJ
aide/NN
,/,
``/``
are/VBP
currently/RB
being/VBG
held/VBD
up/IN
to/TO
scorn/NN
for/IN
taking/VBG
the/DT
Fifth/NNP
Amendment/NNP
./.
''/''
That/DT
certainly/RB
is/VBZ
not/RB
the/DT
supposed/JJ
``/``
distorted/JJ
reading/NN
''/''
indicated/VBN
by/IN
Mr./NNP
Lantos/NNP
./.
3/LS
./.
That/IN
his/PRP$
``/``
committee/NN
does/VBZ
not/RB
deal/VB
with/IN
any/DT
possible/JJ
criminal/JJ
activity/NN
at/IN
HUD/NNP
./.
My/PRP$
colleagues/NNS
and/CC
I/PRP
fully/RB
realize/VBP
we/PRP
are/VBP
not/RB
a/DT
court/NN
.../:
etc/FW
./.
''/''
Absolute/JJ
rubbish/NN
./.
By/IN
any/DT
``/``
reasonable/JJ
man/NN
''/''
criterion/NN
,/,
Mr./NNP
Lantos/NNP
and/CC
his/PRP$
colleagues/NNS
have/VBP
a/DT
whole/JJ
bunch/NN
of/IN
people/NNS
tried/VBN
and/CC
convicted/VBN
./.
Apparently/RB
,/,
their/PRP$
verdict/NN
is/VBZ
in/RB
./.
Right/RB
now/RB
they/PRP
're/VBP
pursuing/VBG
evidence/NN
./.
That/DT
's/VBZ
not/RB
a/DT
bad/JJ
way/NN
to/TO
proceed/VB
,/,
just/RB
somewhat/RB
different/JJ
from/IN
standard/JJ
American/JJ
practice/NN
./.
How/WRB
was/VBD
that/DT
practice/NN
referred/VBN
to/TO
when/WRB
I/PRP
was/VBD
in/IN
school/NN
?/.
Ah/UH
,/,
yes/UH
,/,
something/NN
called/VBN
a/DT
Star/NNP
Chamber/NNP
./.
Of/IN
course/NN
,/,
Mr./NNP
Lantos/NNP
doth/VBZ
protest/NN
that/IN
his/PRP$
subcommittee/NN
simply/RB
seeks/VBZ
information/NN
for/IN
legislative/JJ
change/NN
./.
No/DT
doubt/NN
that/WDT
's/VBZ
partially/RB
true/JJ
./.
Everything/NN
that/IN
Mr./NNP
Lantos/NNP
says/VBZ
in/IN
his/PRP$
letter/NN
is/VBZ
partially/RB
true/JJ
./.
He/PRP
's/VBZ
right/JJ
about/IN
his/PRP$
subcommittee/NN
's/POS
responsibilities/NNS
when/WRB
it/PRP
comes/VBZ
to/TO
obtaining/VBG
information/NN
from/IN
prior/JJ
HUD/NNP
officials/NNS
./.
But/CC
if/IN
his/PRP$
explanation/NN
of/IN
motivation/NN
is/VBZ
true/JJ
,/,
why/WRB
is/VBZ
his/PRP$
investigation/NN
so/RB
oriented/VBN
as/IN
to/TO
identify/VB
criminal/JJ
activity/NN
?/.
Why/WRB
not/RB
simply/RB
questions/NNS
designed/VBN
to/TO
identify/VB
sources/NNS
and/CC
causes/NNS
of/IN
waste/NN
and/CC
inefficiency/NN
?/.
Such/JJ
as/IN
,/,
what/WP
happened/VBD
when/WRB
Congress/NNP
wanted/VBD
to/TO
know/VB
about/RB
$/$
400/CD
toilet/NN
seats/NNS
or/CC
whatever/WDT
they/PRP
supposedly/RB
cost/VBD
?/.
No/RB
,/,
Mr./NNP
Lantos/NNP
's/POS
complaints/NNS
simply/RB
wo/MD
n't/RB
wash/VB
./.
4/LS
./.
That/IN
the/DT
Journal/NNP
defends/VBZ
``/``
the/DT
sleaze/NN
,/,
fraud/NN
,/,
waste/NN
,/,
embezzlement/NN
,/,
influence-peddling/NN
and/CC
abuse/NN
of/IN
the/DT
public/NN
that/WDT
took/VBD
place/NN
while/IN
Mr./NNP
Pierce/NNP
was/VBD
secretary/NN
of/IN
HUD/NNP
,/,
''/''
etc./FW
and/CC
so/RB
forth/RB
./.
No/UH
,/,
to/TO
my/PRP$
mind/NN
,/,
the/DT
Journal/NNP
did/VBD
not/RB
``/``
defend/VB
sleaze/NN
,/,
fraud/NN
,/,
waste/NN
,/,
embezzlement/NN
,/,
influence-peddling/NN
and/CC
abuse/NN
of/IN
the/DT
public/JJ
trust/NN
.../:
''/''
it/PRP
defended/VBD
appropriate/JJ
constitutional/JJ
safeguards/NNS
and/CC
practical/JJ
common/JJ
sense/NN
./.
The/DT
problem/NN
,/,
which/WDT
the/DT
Journal/NNP
so/RB
rightly/RB
pointed/VBN
out/RP
in/IN
a/DT
number/NN
of/IN
articles/NNS
,/,
is/VBZ
not/RB
the/DT
likes/NNS
of/IN
Mr./NNP
Lantos/NNP
,/,
who/WP
after/IN
all/DT
is/VBZ
really/RB
a/DT
bit/JJ
player/NN
on/IN
the/DT
stage/NN
,/,
but/CC
the/DT
attempt/NN
by/IN
Congress/NNP
to/TO
enhance/VB
itself/PRP
into/IN
a/DT
quasi-parliamentary\/judicial/JJ
body/NN
./.
course/NN
,/,
we/PRP
've/VBP
also/RB
got/VBN
a/DT
judiciary/NN
that/WDT
seeks/VBZ
the/DT
same/JJ
objective/NN
./.
The/DT
system/NN
is/VBZ
the/DT
problem/NN
,/,
not/RB
an/DT
individual/JJ
member/NN
./.
Individuals/NNS
can/MD
always/RB
have/VB
their/PRP$
hands/NNS
slapped/VBN
./.
It/PRP
's/POS
when/WRB
such/JJ
slapping/NN
does/VBZ
n't/RB
occur/VB
that/IN
we/PRP
've/VBP
got/VBN
trouble/NN
./.
I/PRP
do/VBP
not/RB
by/IN
any/DT
means/NNS
defend/VB
HUD/NNP
management/NN
./.
But/CC
I/PRP
think/VBP
the/DT
kind/NN
of/IN
congressional/JJ
investigation/NN
that/WDT
has/VBZ
been/VBN
pursued/VBN
is/VBZ
a/DT
far/RB
greater/JJR
danger/NN
to/TO
American/JJ
notions/NNS
of/IN
liberty/NN
and/CC
freedom/NN
than/IN
any/DT
incompetency/NN
criminality/NN
HUD/NNP
could/MD
possibly/RB
generate/VB
./.
The/DT
last/JJ
time/NN
I/PRP
saw/VBD
a/DT
similar/JJ
congressional/JJ
hearing/NN
was/VBD
when/WRB
``/``
Tail/NNP
Gunner/NNP
Joe/NNP
''/''
McCarthy/NNP
did/VBD
his/PRP$
work/NN
./.
Raymond/NNP
Weber/NNP
Parsippany/NNP
,/,
N.J/NNP
./.
I/PRP
disagree/VBP
with/IN
the/DT
statement/NN
by/IN
Mr./NNP
Lantos/NNP
that/IN
one/PRP
should/MD
not/RB
draw/VB
an/DT
adverse/JJ
inference/NN
against/IN
former/JJ
HUD/NNP
officials/NNS
who/WP
assert/VBP
their/PRP$
Fifth/NNP
Amendment/NNP
privilege/NN
against/IN
self-incrimination/NN
in/IN
congressional/JJ
hearings/NNS
./.
The/DT
Fifth/NNP
Amendment/NNP
states/VBZ
in/IN
relevant/JJ
part/NN
that/IN
no/DT
person/NN
``/``
shall/MD
be/VB
compelled/VBN
,/,
in/IN
any/DT
criminal/JJ
case/NN
,/,
to/TO
be/VB
a/DT
witness/NN
against/IN
himself/PRP
./.
''/''
This/DT
privilege/NN
against/IN
self-incrimination/NN
precludes/VBZ
the/DT
drawing/NN
of/IN
an/DT
adverse/JJ
inference/NN
against/IN
a/DT
criminal/JJ
defendant/NN
who/WP
chooses/VBZ
not/RB
to/TO
testify/VB
./.
Thus/RB
,/,
in/IN
a/DT
criminal/JJ
case/NN
,/,
a/DT
prosecutor/NN
can/MD
not/RB
comment/VB
on/IN
a/DT
defendant/NN
's/POS
failure/NN
to/TO
testify/VB
nor/CC
can/MD
the/DT
defendant/NN
be/VB
compelled/VBN
to/TO
take/VB
the/DT
stand/NN
as/IN
a/DT
witness/NN
,/,
thus/RB
forcing/VBG
him/PRP
to/TO
``/``
take/VB
the/DT
Fifth/NNP
./.
''/''
The/DT
privilege/NN
,/,
however/RB
,/,
has/VBZ
been/VBN
limited/VBN
in/IN
accordance/NN
with/IN
its/PRP$
plain/JJ
language/NN
to/TO
protect/VB
the/DT
defendant/NN
in/IN
criminal/JJ
matters/NNS
only/RB
./.
The/DT
Supreme/NNP
Court/NNP
and/CC
some/DT
states/NNS
have/VBP
specifically/RB
recognized/VBN
that/IN
``/``
the/DT
Fifth/NNP
Amendment/NNP
does/VBZ
not/RB
preclude/VB
the/DT
inference/NN
where/WRB
the/DT
privilege/NN
is/VBZ
claimed/VBN
by/IN
a/DT
party/NN
to/TO
a/DT
civil/JJ
cause/NN
./.
''/''
Baxter/NNP
v./IN
Palmingiano/NNP
,/,
425/CD
U.S./NNP
308/CD
1976/CD
Thus/RB
,/,
in/IN
a/DT
civil/JJ
case/NN
,/,
a/DT
defendant/NN
may/MD
be/VB
called/VBN
as/IN
a/DT
witness/NN
,/,
he/PRP
may/MD
be/VB
forced/VBN
to/TO
testify/VB
or/CC
take/VB
the/DT
Fifth/NNP
,/,
and/CC
his/PRP$
taking/NN
of/IN
the/DT
Fifth/NNP
may/MD
permit/VB
the/DT
drawing/NN
of/IN
an/DT
adverse/JJ
inference/NN
against/IN
him/PRP
in/IN
the/DT
civil/JJ
matter/NN
./.
He/PRP
may/MD
take/VB
the/DT
Fifth/NNP
in/IN
a/DT
civil/JJ
matter/NN
only/RB
if/IN
he/PRP
has/VBZ
a/DT
good/JJ
faith/NN
and/CC
justifiable/JJ
belief/NN
that/IN
his/PRP$
testimony/NN
may/MD
subject/VB
him/PRP
to/TO
criminal/JJ
prosecution/NN
./.
Allowing/VBG
the/DT
defendant/NN
to/TO
take/VB
the/DT
Fifth/NNP
in/IN
a/DT
civil/JJ
matter/NN
is/VBZ
not/RB
based/VBN
on/IN
a/DT
constitutional/JJ
right/NN
to/TO
refuse/VB
to/TO
testify/VB
where/WRB
one/PRP
's/POS
testimony/NN
harms/VBZ
him/PRP
in/IN
the/DT
civil/JJ
matter/NN
,/,
but/CC
because/IN
the/DT
testimony/NN
in/IN
the/DT
civil/JJ
matter/NN
could/MD
be/VB
unconstitutionally/RB
used/VBN
against/IN
him/PRP
in/IN
a/DT
subsequent/JJ
criminal/JJ
prosecution/NN
./.
Absent/JJ|IN
the/DT
risk/NN
of/IN
such/JJ
prosecution/NN
,/,
a/DT
court/NN
may/MD
order/VB
the/DT
defendant/NN
to/TO
testify/VB
./.
Thus/RB
,/,
when/WRB
Mr./NNP
Pierce/NNP
asserted/VBD
the/DT
Fifth/NNP
in/IN
a/DT
noncriminal/JJ
proceeding/NN
,/,
particularly/RB
after/IN
presumably/RB
receiving/VBG
extensive/JJ
advice/NN
from/IN
legal/JJ
counsel/NN
,/,
one/PRP
must/MD
conclude/VB
that/IN
he/PRP
held/VBD
a/DT
good-faith/NN
,/,
justifiable/JJ
belief/NN
that/IN
his/PRP$
testimony/NN
could/MD
be/VB
used/VBN
against/IN
him/PRP
in/IN
a/DT
subsequent/JJ
criminal/JJ
prosecution/NN
./.
The/DT
subcommittee/NN
,/,
Congress/NNP
and/CC
the/DT
American/JJ
public/NN
have/VBP
every/DT
right/NN
to/TO
draw/VB
the/DT
adverse/JJ
inference/NN
and/CC
to/TO
concur/VB
with/IN
Mr./NNP
Pierce/NNP
's/POS
own/JJ
belief/NN
that/IN
his/PRP$
testimony/NN
could/MD
help/VB
convict/VB
him/PRP
of/IN
a/DT
crime/NN
./.
Drawing/VBG
the/DT
adverse/JJ
inference/NN
in/IN
a/DT
noncriminal/JJ
congressional/JJ
hearing/NN
does/VBZ
not/RB
offend/VB
the/DT
Fifth/NNP
Amendment/NNP
shield/NN
against/IN
self-incrimination/NN
./.
Clark/NNP
S./NNP
Spalsbury/NNP
Jr/NNP
./.
Estes/NNP
Park/NNP
,/,
Colo/NNP
./.
It/PRP
was/VBD
Friday/NNP
the/DT
13th/NNP
,/,
and/CC
the/DT
stock/NN
market/NN
plummeted/VBD
nearly/RB
200/CD
points/NNS
./.
Just/RB
a/DT
coincidence/NN
?/.
Or/CC
is/VBZ
triskaidekaphobia/NN
--/:
fear/NN
of/IN
the/DT
number/NN
13/CD
--/:
justified/VBN
?/.
In/IN
academia/NN
,/,
a/DT
so-called/JJ
Friday/NNP
the/DT
13th/NNP
effect/NN
has/VBZ
been/VBN
set/VBN
up/RP
and/CC
shot/VBD
down/RP
by/IN
different/JJ
professors/NNS
./.
Robert/NNP
Kolb/NNP
and/CC
Ricardo/NNP
Rodriguez/NNP
,/,
professors/NNS
of/IN
finance/NN
at/IN
the/DT
University/NNP
of/IN
Miami/NNP
,/,
found/VBD
evidence/NN
that/IN
the/DT
market/NN
is/VBZ
spooked/VBN
by/IN
Friday/NNP
the/DT
13th/NNP
./.
But/CC
their/PRP$
study/NN
,/,
which/WDT
spanned/VBD
the/DT
1962-85/CD
period/NN
,/,
has/VBZ
since/RB
been/VBN
shown/VBN
to/TO
be/VB
jinxed/VBN
by/IN
an/DT
unlucky/JJ
choice/NN
of/IN
data/NNS
./.
In/IN
the/DT
'70s/NNS
,/,
the/DT
market/NN
took/VBD
falls/NNS
nine/CD
times/NNS
in/IN
a/DT
row/NN
on/IN
Friday/NNP
the/DT
you-know-what/NN
./.
But/CC
the/DT
date/NN
tends/VBZ
to/TO
be/VB
a/DT
plus/NN
,/,
not/RB
a/DT
minus/NN
,/,
for/IN
stocks/NNS
,/,
according/VBG
to/TO
Yale/NNP
Hirsch/NNP
,/,
a/DT
collector/NN
of/IN
stock/NN
market/NN
lore/NN
./.
Another/DT
study/NN
found/VBD
that/IN
the/DT
82/CD
Fridays/NNP
the/DT
13th/JJ
in/IN
the/DT
1940-1987/CD
period/NN
had/VBD
higher/JJR
than/IN
average/JJ
returns/NNS
--/:
higher/JJR
even/RB
than/IN
Fridays/NNPS
in/IN
general/JJ
,/,
which/WDT
tend/VBP
to/TO
be/VB
strong/JJ
days/NNS
for/IN
stock/NN
prices/NNS
./.
On/IN
the/DT
only/JJ
other/JJ
Friday/NNP
the/DT
13th/NNP
this/DT
year/NN
,/,
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
rose/VBD
about/RB
four/CD
points/NNS
./.
Professor/NNP
Kolb/NNP
says/VBZ
the/DT
original/JJ
study/NN
,/,
titled/VBN
Friday/NNP
the/DT
13th/NNP
,/,
Part/NNP
VII/NNP
,/,
was/VBD
published/VBN
tongue-in-cheek/RB
./.
In/IN
a/DT
similar/JJ
vein/NN
,/,
he/PRP
adds/VBZ
that/IN
the/DT
anniversary/NN
of/IN
the/DT
1987/CD
crash/NN
and/CC
Saturday/NNP
's/POS
full/JJ
moon/NN
could/MD
have/VB
played/VBN
a/DT
part/NN
,/,
too/RB
,/,
in/IN
Friday/NNP
's/POS
market/NN
activity/NN
./.
reminiscent/JJ
of/IN
those/DT
during/IN
the/DT
1987/CD
crash/NN
--/:
that/IN
as/IN
stock/NN
prices/NNS
plummeted/VBD
and/CC
trading/NN
activity/NN
escalated/VBD
,/,
some/DT
phone/NN
calls/NNS
to/TO
market/NN
makers/NNS
in/IN
over-the-counter/JJ
stocks/NNS
went/VBD
unanswered/JJ
./.
``/``
We/PRP
could/MD
n't/RB
get/VB
dealers/NNS
to/TO
answer/VB
their/PRP$
phones/NNS
,/,
''/''
said/VBD
Robert/NNP
King/NNP
,/,
senior/JJ
vice/NN
president/NN
of/IN
OTC/NNP
trading/NN
at/IN
Robinson-Humphrey/NNP
Co./NNP
in/IN
Atlanta/NNP
./.
``/``
It/PRP
was/VBD
{/(
like/IN
}/)
the/DT
Friday/NNP
before/IN
Black/NNP
Monday/NNP
''/''
two/CD
years/NNS
ago/RB
./.
Whether/IN
unanswered/JJ
phone/NN
calls/NNS
had/VBD
any/DT
effect/NN
or/CC
not/RB
,/,
Nasdaq/NNP
stocks/NNS
sank/VBD
far/RB
less/RBR
than/IN
those/DT
on/IN
the/DT
New/NNP
York/NNP
and/CC
American/NNP
exchanges/NNS
./.
Nonetheless/RB
,/,
the/DT
Nasdaq/NNP
Composite/NNP
Index/NNP
suffered/VBD
its/PRP$
biggest/JJS
point/NN
decline/NN
of/IN
the/DT
year/NN
and/CC
its/PRP$
sixth/JJ
worst/JJS
ever/RB
,/,
diving/VBG
14.90/CD
,/,
or/CC
3/CD
%/NN
,/,
to/TO
467.29/CD
./.
Ten/CD
points/NNS
of/IN
the/DT
drop/NN
occurred/VBD
during/IN
the/DT
last/JJ
45/CD
minutes/NNS
of/IN
trading/VBG
./.
By/IN
comparison/NN
,/,
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
Composite/NNP
tumbled/VBD
5.8/CD
%/NN
Friday/NNP
and/CC
the/DT
American/NNP
Stock/NNP
Exchange/NNP
Composite/NNP
fell/VBD
4/CD
%/NN
./.
On/IN
Oct./NNP
16/CD
,/,
1987/CD
,/,
the/DT
Nasdaq/NNP
Composite/NNP
fell/VBD
16.18/CD
points/NNS
,/,
or/CC
3.8/CD
%/NN
,/,
followed/VBN
by/IN
its/PRP$
devastating/JJ
46.12-point/JJ
,/,
or/CC
11/CD
%/NN
slide/NN
,/,
three/CD
days/NNS
later/RB
./.
Nasdaq/NNP
volume/NN
Friday/NNP
totaled/VBD
167.7/CD
million/CD
shares/NNS
,/,
which/WDT
was/VBD
only/RB
the/DT
fifth/JJ
busiest/JJS
day/NN
so/RB
far/RB
this/DT
year/NN
./.
The/DT
single-day/JJ
record/NN
of/IN
288/CD
million/CD
shares/NNS
was/VBD
set/VBN
on/IN
Oct./NNP
21/CD
,/,
``/``
There/RB
was/VBD
n't/RB
a/DT
lot/NN
of/IN
volume/NN
because/IN
it/PRP
was/VBD
just/RB
impossible/JJ
to/TO
get/VB
stock/NN
moved/VBN
,/,
''/''
said/VBD
E.E./NNP
``/``
Buzzy/NNP
''/''
Geduld/NNP
,/,
president/NN
of/IN
Herzog/NNP
,/,
Heine/NNP
,/,
Geduld/NNP
,/,
a/DT
New/NNP
York/NNP
company/NN
that/WDT
makes/VBZ
markets/NNS
in/IN
thousands/NNS
of/IN
OTC/NNP
issues/NNS
./.
Most/JJS
of/IN
the/DT
complaints/NNS
about/IN
unanswered/JJ
phone/NN
calls/NNS
came/VBD
from/IN
regional/JJ
brokers/NNS
rather/RB
than/IN
individual/JJ
investors/NNS
./.
Mr./NNP
King/NNP
of/IN
Robinson-Humphrey/NNP
and/CC
others/NNS
were/VBD
quick/JJ
to/TO
add/VB
that/IN
they/PRP
believe/VBP
the/DT
problem/NN
stemmed/VBD
more/RBR
from/IN
traders/NNS
'/POS
inability/NN
to/TO
handle/VB
the/DT
volume/NN
of/IN
calls/NNS
,/,
rather/RB
than/IN
a/DT
deliberate/JJ
attempt/NN
to/TO
avoid/VB
making/VBG
trades/NNS
./.
The/DT
subject/NN
is/VBZ
a/DT
sore/JJ
one/CD
for/IN
Nasdaq/NNP
and/CC
its/PRP$
market-making/JJ
companies/NNS
,/,
which/WDT
were/VBD
widely/RB
criticized/VBN
two/CD
years/NNS
ago/RB
following/VBG
complaints/NNS
from/IN
investors/NNS
who/WP
could/MD
n't/RB
reach/VB
their/PRP$
brokers/NNS
or/CC
trade/VB
in/IN
the/DT
chaos/NN
of/IN
the/DT
crash/NN
./.
Peter/NNP
DaPuzzo/NNP
,/,
head/NN
of/IN
retail/JJ
equity/NN
trading/NN
at/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
,/,
declared/VBD
:/:
``/``
It/PRP
was/VBD
the/DT
last/JJ
hour/NN
of/IN
trading/NN
on/IN
a/DT
Friday/NNP
./.
There/EX
were/VBD
too/RB
many/JJ
phones/NNS
ringing/VBG
and/CC
too/RB
many/JJ
things/NNS
happening/VBG
to/TO
expect/VB
market/NN
makers/NNS
to/TO
be/VB
as/RB
efficient/JJ
as/IN
robots/NNS
./.
It/PRP
was/VBD
n't/RB
intentional/JJ
,/,
we/PRP
were/VBD
all/RB
busy/JJ
./.
''/''
James/NNP
Tarantino/NNP
,/,
head/NN
of/IN
OTC/NNP
trading/NN
at/IN
Hambrecht/NNP
&/CC
Quist/NNP
in/IN
San/NNP
Francisco/NNP
,/,
said/VBD
,/,
``/``
It/PRP
was/VBD
just/RB
like/IN
two/CD
years/NNS
ago/RB
./.
Everybody/NN
was/VBD
trying/VBG
to/TO
do/VB
the/DT
same/JJ
thing/NN
at/IN
the/DT
same/JJ
time/NN
./.
''/''
Jeremiah/NNP
Mullins/NNP
,/,
the/DT
OTC/NNP
trading/NN
chief/NN
at/IN
Dean/NNP
Witter/NNP
Reynolds/NNP
in/IN
New/NNP
York/NNP
,/,
said/VBD
proudly/RB
that/IN
his/PRP$
company/NN
executed/VBD
every/DT
order/NN
it/PRP
received/VBD
by/IN
the/DT
close/NN
of/IN
trading/NN
./.
But/CC
,/,
he/PRP
added/VBD
,/,
``/``
you/PRP
can/MD
only/RB
take/VB
one/CD
call/NN
at/IN
a/DT
time/NN
./.
''/''
Market/NN
makers/NNS
keep/VBP
supplies/NNS
of/IN
stock/NN
on/IN
hand/NN
to/TO
maintain/VB
orderly/JJ
trading/NN
when/WRB
imbalances/NNS
occur/VBP
./.
On/IN
days/NNS
like/IN
Friday/NNP
,/,
that/WDT
means/VBZ
they/PRP
must/MD
buy/VB
shares/NNS
from/IN
sellers/NNS
when/WRB
no/DT
one/NN
else/RB
is/VBZ
willing/JJ
to/TO
./.
When/WRB
selling/NN
is/VBZ
so/RB
frenzied/JJ
,/,
prices/NNS
fall/VBP
steeply/RB
and/CC
fast/RB
./.
Two/CD
years/NNS
ago/RB
,/,
faced/VBN
with/IN
the/DT
possibility/NN
of/IN
heavy/JJ
losses/NNS
on/IN
the/DT
stocks/NNS
in/IN
their/PRP$
inventories/NNS
,/,
market/NN
makers/NNS
themselves/PRP
began/VBD
dumping/VBG
shares/NNS
,/,
exacerbating/VBG
the/DT
slide/NN
in/IN
OTC/NNP
stock/NN
prices/NNS
./.
On/IN
Friday/NNP
,/,
some/DT
market/NN
makers/NNS
were/VBD
selling/VBG
again/RB
,/,
traders/NNS
said/VBD
./.
But/CC
,/,
with/IN
profits/NNS
sagging/VBG
on/IN
Wall/NNP
Street/NNP
since/IN
the/DT
crash/NN
,/,
companies/NNS
have/VBP
kept/VBN
smaller/JJR
share/NN
stockpiles/NNS
on/IN
hand/NN
./.
Mr./NNP
Tarantino/NNP
of/IN
Hambrecht/NNP
&/CC
Quist/NNP
said/VBD
some/DT
prices/NNS
fell/VBD
without/IN
trades/NNS
taking/VBG
place/NN
,/,
as/IN
market/NN
makers/NNS
kept/VBD
dropping/VBG
the/DT
prices/NNS
at/IN
which/WDT
they/PRP
would/MD
buy/VB
shares/NNS
./.
``/``
Everyone/NN
was/VBD
hitting/VBG
everyone/NN
else/RB
's/POS
bid/NN
,/,
''/''
he/PRP
said/VBD
./.
So/RB
,/,
while/IN
OTC/NNP
companies/NNS
incurred/VBD
losses/NNS
on/IN
Friday/NNP
,/,
trading/NN
officials/NNS
said/VBD
the/DT
damage/NN
was/VBD
n't/RB
as/RB
bad/JJ
as/IN
it/PRP
was/VBD
in/IN
1987/CD
./.
``/``
Two/CD
years/NNS
ago/RB
we/PRP
were/VBD
carrying/VBG
huge/JJ
inventories/NNS
and/CC
that/DT
was/VBD
the/DT
big/JJ
culprit/NN
./.
I/PRP
do/VBP
n't/RB
know/VB
of/IN
anyone/NN
carrying/VBG
big/JJ
inventories/NNS
now/RB
,/,
''/''
said/VBD
Mr./NNP
King/NNP
of/IN
Robinson-Humphrey/NNP
./.
Tony/NNP
Cecin/NNP
,/,
head/NN
of/IN
equity/NN
trading/NN
at/IN
Piper/NNP
,/,
Jaffray/NNP
&/CC
Hopwood/NNP
in/IN
Minneapolis/NNP
,/,
said/VBD
that/IN
Piper/NNP
Jaffray/NNP
actually/RB
made/VBD
money/NN
on/IN
Friday/NNP
./.
It/PRP
helped/VBD
that/IN
his/PRP$
inventory/NN
is/VBZ
a/DT
third/NN
smaller/JJR
now/RB
than/IN
it/PRP
was/VBD
two/CD
years/NNS
ago/RB
,/,
he/PRP
said/VBD
./.
Joseph/NNP
Hardiman/NNP
,/,
president/NN
of/IN
the/DT
National/NNP
Association/NNP
of/IN
Securities/NNP
Dealers/NNP
,/,
which/WDT
oversees/VBZ
the/DT
Nasdaq/NNP
computerized/JJ
trading/NN
system/NN
,/,
said/VBD
that/IN
despite/IN
the/DT
rush/NN
of/IN
selling/VBG
,/,
he/PRP
never/RB
considered/VBD
the/DT
situation/NN
an/DT
``/``
emergency/NN
./.
''/''
``/``
The/DT
pace/NN
of/IN
trading/NN
was/VBD
orderly/JJ
,/,
''/''
he/PRP
said/VBD
./.
Nasdaq/NNP
's/POS
Small/NNP
Order/NNP
Execution/NNP
System/NNP
``/``
worked/VBD
beautifully/RB
,/,
''/''
as/IN
did/VBD
the/DT
automated/JJ
system/NN
for/IN
larger/JJR
trades/NNS
,/,
according/VBG
to/TO
Mr./NNP
Hardiman/NNP
./.
Nevertheless/RB
,/,
the/DT
shock/NN
of/IN
another/DT
steep/JJ
plunge/NN
in/IN
stock/NN
prices/NNS
undoubtedly/RB
will/MD
shake/VB
many/JJ
investors/NNS
'/POS
confidence/NN
./.
In/IN
the/DT
past/NN
,/,
the/DT
OTC/NNP
market/NN
thrived/VBD
on/IN
a/DT
firm/JJ
base/NN
of/IN
small-investor/NN
participation/NN
./.
Because/IN
Nasdaq/NNP
's/POS
trading/NN
volume/NN
has/VBZ
n't/RB
returned/VBN
to/TO
pre-crash/JJ
levels/NNS
,/,
traders/NNS
and/CC
OTC/NNP
market/NN
officials/NNS
hope/VBP
the/DT
damage/NN
wo/MD
n't/RB
be/VB
permanent/JJ
./.
But/CC
they/PRP
are/VBP
worried/JJ
./.
``/``
We/PRP
were/VBD
just/RB
starting/VBG
to/TO
get/VB
the/DT
public/NN
's/POS
confidence/NN
back/RP
,/,
''/''
lamented/VBD
Mr./NNP
Mullins/NNP
of/IN
Dean/NNP
Witter/NNP
./.
More/RBR
troubling/JJ
is/VBZ
the/DT
prospect/NN
that/IN
the/DT
overall/JJ
collapse/NN
in/IN
stock/NN
prices/NNS
could/MD
permanently/RB
erode/VB
the/DT
base/NN
of/IN
small-investor/NN
support/NN
the/DT
OTC/NNP
market/NN
was/VBD
struggling/VBG
to/TO
rebuild/VB
in/IN
the/DT
wake/NN
of/IN
the/DT
October/NNP
1987/CD
crash/NN
./.
Mr./NNP
Cecin/NNP
of/IN
Piper/NNP
Jaffray/NNP
says/VBZ
some/DT
action/NN
from/IN
government/NN
policy/NN
makers/NNS
would/MD
allay/VB
investor/NN
fears/NNS
./.
It/PRP
wo/MD
n't/RB
take/VB
much/JJ
more/RBR
to/TO
``/``
scare/VB
the/DT
hell/NN
out/IN
of/IN
retail/JJ
investors/NNS
,/,
''/''
he/PRP
says/VBZ
./.
The/DT
sellers/NNS
on/IN
Friday/NNP
came/VBD
from/IN
all/DT
corners/NNS
of/IN
the/DT
OTC/NNP
market/NN
--/:
big/JJ
and/CC
small/JJ
institutional/JJ
investors/NNS
,/,
as/RB
well/RB
as/IN
individual/JJ
investors/NNS
and/CC
market/NN
makers/NNS
./.
But/CC
grateful/JJ
traders/NNS
said/VBD
the/DT
sell/NN
orders/NNS
generally/RB
ranged/VBD
from/IN
20,000/CD
shares/NNS
to/TO
50,000/CD
shares/NNS
,/,
compared/VBN
with/IN
blocks/NNS
of/IN
500,000/CD
shares/NNS
or/CC
more/JJR
two/CD
years/NNS
ago/RB
./.
Shearson/NNP
's/POS
Mr./NNP
DaPuzzo/NNP
said/VBD
retail/JJ
investors/NNS
nervously/RB
sold/VBD
stock/NN
Friday/NNP
and/CC
never/RB
returned/VBD
to/TO
bargain-hunt/VB
./.
Institutional/JJ
investors/NNS
,/,
which/WDT
had/VBD
been/VBN
selling/VBG
stock/NN
throughout/IN
last/JJ
week/NN
to/TO
lock/VB
in/RP
handsome/JJ
gains/NNS
made/VBN
through/IN
the/DT
third/JJ
quarter/NN
,/,
were/VBD
calmer/JJR
./.
``/``
We/PRP
had/VBD
a/DT
good/JJ
amount/NN
of/IN
selling/VBG
from/IN
institutions/NNS
,/,
but/CC
not/RB
as/IN
much/JJ
panic/NN
,/,
''/''
Mr./NNP
DaPuzzo/NNP
said/VBD
./.
``/``
If/IN
they/PRP
could/MD
n't/RB
sell/VB
,/,
some/DT
of/IN
them/PRP
put/VBD
the/DT
shares/NNS
back/RB
on/IN
the/DT
shelf/NN
./.
''/''
In/IN
addition/NN
,/,
he/PRP
said/VBD
,/,
some/DT
bigger/JJR
institutional/JJ
investors/NNS
placed/VBD
bids/NNS
to/TO
buy/VB
some/DT
OTC/NNP
stocks/NNS
whose/WP$
prices/NNS
were/VBD
beaten/VBN
down/RP
./.
In/IN
addition/NN
,/,
Mr./NNP
DaPuzzo/NNP
said/VBD
computer-guided/JJ
program/NN
selling/NN
of/IN
OTC/NNP
stocks/NNS
in/IN
the/DT
Russell/NNP
Index/NNP
of/IN
2000/CD
small/JJ
stocks/NNS
and/CC
the/DT
Standard/NNP
&/CC
Poor/NNP
's/POS
500-stock/NNP
Index/NNP
sent/VBD
occasional/JJ
``/``
waves/NNS
``/``
through/IN
the/DT
market/NN
./.
Nasdaq/NNP
's/POS
biggest/JJS
stocks/NNS
were/VBD
hammered/VBN
./.
The/DT
Nasdaq/NNP
100/CD
Index/NNP
of/IN
the/DT
largest/JJS
nonfinancial/JJ
issues/NNS
,/,
including/VBG
the/DT
big/JJ
OTC/NNP
technology/NN
issues/NNS
,/,
tumbled/VBD
4.2/CD
%/NN
,/,
or/CC
19.76/CD
,/,
to/TO
449.33/CD
./.
The/DT
Nasdaq/NNP
Financial/NNP
Index/NNP
of/IN
giant/JJ
insurance/NN
and/CC
banking/NN
stocks/NNS
dropped/VBD
2/CD
%/NN
,/,
or/CC
9.31/CD
,/,
to/TO
462.98/CD
./.
The/DT
OTC/NNP
market/NN
has/VBZ
only/RB
a/DT
handful/NN
of/IN
takeover-related/JJ
stocks/NNS
./.
But/CC
they/PRP
fell/VBD
sharply/RB
./.
McCaw/NNP
Cellular/NNP
Communications/NNP
,/,
for/IN
instance/NN
,/,
has/VBZ
offered/VBN
to/TO
buy/VB
LIN/NNP
Broadcasting/NNP
as/RB
well/RB
as/IN
Metromedia/NNP
's/POS
New/NNP
York/NNP
City/NNP
cellular/JJ
telephone/NN
interests/NNS
,/,
and/CC
in/IN
a/DT
separate/JJ
transaction/NN
,/,
sell/VB
certain/JJ
McCaw/NNP
properties/NNS
to/TO
Contel/NNP
Cellular/NNP
./.
McCaw/NNP
lost/VBD
8/CD
%/NN
,/,
or/CC
3/CD
1\/2/CD
,/,
to/TO
40/CD
./.
LIN/NNP
Broadcasting/NNP
,/,
dropped/VBD
5/CD
1\/2/CD
,/,
or/CC
5/CD
%/NN
,/,
to/TO
107/CD
1\/2/CD
./.
The/DT
turnover/NN
in/IN
both/DT
issues/NNS
was/VBD
roughly/RB
normal/JJ
./.
On/IN
a/DT
day/NN
when/WRB
negative/JJ
takeover-related/JJ
news/NN
did/VBD
n't/RB
sit/VB
well/RB
with/IN
investors/NNS
,/,
Commercial/NNP
Intertech/NNP
,/,
a/DT
maker/NN
of/IN
engineered/JJ
metal/NN
parts/NNS
,/,
said/VBD
Haas/NNP
&/CC
Partners/NNP
advised/VBD
it/PRP
that/IN
it/PRP
does/VBZ
n't/RB
plan/VB
to/TO
pursue/VB
its/PRP$
previously/RB
reported/VBN
$/$
27.50-a-share/JJ
bid/NN
to/TO
buy/VB
the/DT
company/NN
./.
Commercial/NNP
Intertech/NNP
plummeted/VBD
6/CD
to/TO
26/CD
./.
The/DT
issues/NNS
of/IN
companies/NNS
with/IN
ties/NNS
to/TO
the/DT
junk/NN
bond/NN
market/NN
also/RB
tumbled/VBD
Friday/NNP
./.
On/IN
the/DT
OTC/NNP
market/NN
,/,
First/NNP
Executive/NNP
,/,
a/DT
big/JJ
buyer/NN
of/IN
the/DT
high-risk/JJ
,/,
high-yield/JJ
issues/NNS
,/,
slid/VBD
2/CD
to/TO
12/CD
1\/4/CD
./.
Among/IN
other/JJ
OTC/NNP
issues/NNS
,/,
Intel/NNP
,/,
dropped/VBD
2/CD
1\/8/CD
to/TO
33/CD
7\/8/CD
;/:
Laidlaw/NNP
Transportation/NNP
lost/VBD
1/CD
1\/8/CD
to/TO
19/CD
1\/2/CD
;/:
the/DT
American/JJ
depositary/JJ
receipts/NNS
of/IN
Jaguar/NNP
were/VBD
off/RB
1\/4/CD
to/TO
10/CD
1\/4/CD
;/:
MCI/NNP
Communications/NNP
slipped/VBD
2/CD
1\/4/CD
to/TO
43/CD
1\/2/CD
;/:
Apple/NNP
Computer/NNP
fell/VBD
3/CD
to/TO
45/CD
3\/4/CD
and/CC
Nike/NNP
dropped/VBD
2/CD
1\/4/CD
to/TO
66/CD
3\/4/CD
./.
Friday/NNP
,/,
October/NNP
13/CD
,/,
1989/CD
The/DT
key/JJ
U.S./NNP
and/CC
foreign/JJ
annual/JJ
interest/NN
rates/NNS
below/RB
are/VBP
a/DT
guide/NN
to/TO
general/JJ
levels/NNS
but/CC
do/VBP
n't/RB
always/RB
represent/VB
actual/JJ
transactions/NNS
./.
PRIME/JJ
RATE/NN
:/:
10/CD
1\/2/CD
%/NN
./.
The/DT
base/JJ
rate/NN
on/IN
corporate/JJ
loans/NNS
at/IN
large/JJ
U.S./NNP
money/NN
center/NN
commercial/JJ
banks/NNS
./.
FEDERAL/JJ
FUNDS/NNS
:/:
8/CD
13\/16/CD
%/NN
high/JJ
,/,
8/CD
1\/2/CD
%/NN
low/JJ
,/,
8/CD
5\/8/CD
%/NN
near/IN
closing/NN
bid/NN
,/,
8/CD
3\/4/CD
%/NN
offered/VBN
./.
Reserves/NNS
traded/VBD
among/IN
commercial/JJ
banks/NNS
for/IN
overnight/JJ
use/NN
in/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
or/CC
more/JJR
./.
Source/NN
:/:
Fulton/NNP
Prebon/NNP
U.S.A/NNP
./.
Inc/NNP
./.
DISCOUNT/NN
RATE/NN
:/:
7/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
depository/JJ
institutions/NNS
by/IN
the/DT
New/NNP
York/NNP
Federal/NNP
Reserve/NNP
Bank/NNP
./.
CALL/NN
MONEY/NN
:/:
9/CD
3\/4/CD
%/NN
to/TO
10/CD
%/NN
./.
The/DT
charge/NN
on/IN
loans/NNS
to/TO
brokers/NNS
on/IN
stock/NN
exchange/NN
collateral/NN
./.
COMMERCIAL/JJ
PAPER/NN
placed/VBN
directly/RB
by/IN
General/NNP
Motors/NNP
Acceptance/NNP
Corp./NNP
:/:
8.60/CD
%/NN
30/CD
to/TO
44/CD
days/NNS
;/:
8.55/CD
%/NN
45/CD
to/TO
59/CD
days/NNS
;/:
8.375/CD
%/NN
60/CD
to/TO
79/CD
days/NNS
;/:
8.50/CD
%/NN
80/CD
to/TO
89/CD
days/NNS
;/:
8.25/CD
%/NN
90/CD
to/TO
119/CD
days/NNS
;/:
8.125/CD
%/NN
120/CD
to/TO
149/CD
days/NNS
;/:
8/CD
%/NN
150/CD
to/TO
179/CD
days/NNS
;/:
7.625/CD
%/NN
180/CD
to/TO
270/CD
days/NNS
./.
COMMERCIAL/JJ
PAPER/NN
:/:
High-grade/JJ
unsecured/JJ
notes/NNS
sold/VBN
through/IN
dealers/NNS
by/IN
major/JJ
corporations/NNS
in/IN
multiples/NNS
of/IN
$/$
1,000/CD
:/:
8.65/CD
%/NN
30/CD
days/NNS
;/:
8.55/CD
%/NN
60/CD
days/NNS
;/:
8.55/CD
%/NN
90/CD
days/NNS
./.
CERTIFICATES/NNS
OF/IN
DEPOSIT/NN
:/:
8.15/CD
%/NN
one/CD
month/NN
;/:
8.15/CD
%/NN
two/CD
months/NNS
;/:
8.13/CD
%/NN
three/CD
months/NNS
;/:
8.11/CD
%/NN
six/CD
months/NNS
;/:
8.08/CD
%/NN
one/CD
year/NN
./.
Average/NN
of/IN
top/JJ
rates/NNS
paid/VBN
by/IN
major/JJ
New/NNP
York/NNP
banks/NNS
on/IN
primary/JJ
new/JJ
issues/NNS
of/IN
negotiable/JJ
C.D.s/NNS
,/,
usually/RB
on/IN
amounts/NNS
of/IN
$/$
1/CD
million/CD
and/CC
more/JJR
./.
The/DT
minimum/JJ
unit/NN
is/VBZ
$/$
100,000/CD
./.
Typical/JJ
rates/NNS
in/IN
the/DT
secondary/JJ
market/NN
:/:
8.65/CD
%/NN
one/CD
month/NN
;/:
8.65/CD
%/NN
three/CD
months/NNS
;/:
8.55/CD
%/NN
six/CD
months/NNS
./.
BANKERS/NNS
ACCEPTANCES/NNS
:/:
8.52/CD
%/NN
30/CD
days/NNS
;/:
8.37/CD
%/NN
60/CD
days/NNS
;/:
8.15/CD
%/NN
90/CD
days/NNS
;/:
7.98/CD
%/NN
120/CD
days/NNS
;/:
7.92/CD
%/NN
150/CD
days/NNS
;/:
7.80/CD
%/NN
180/CD
days/NNS
./.
Negotiable/JJ
,/,
bank-backed/JJ
business/NN
credit/NN
instruments/NNS
typically/RB
financing/VBG
an/DT
import/NN
order/NN
./.
LONDON/NNP
LATE/JJ
EURODOLLARS/NNS
:/:
8/CD
13\/16/CD
%/NN
to/TO
8/CD
11\/16/CD
%/NN
one/CD
month/NN
;/:
8/CD
13\/16/CD
%/NN
to/TO
8/CD
11\/16/CD
%/NN
two/CD
months/NNS
;/:
8/CD
13\/16/CD
%/NN
to/TO
8/CD
11\/16/CD
%/NN
three/CD
months/NNS
;/:
8/CD
3\/4/CD
%/NN
to/TO
8/CD
5\/8/CD
%/NN
four/CD
months/NNS
;/:
8/CD
11\/16/CD
%/NN
to/TO
8/CD
9\/16/CD
%/NN
five/CD
months/NNS
;/:
8/CD
5\/8/CD
%/NN
to/TO
8/CD
1\/2/CD
%/NN
six/CD
months/NNS
./.
LONDON/NNP
INTERBANK/RB
OFFERED/VBN
RATES/NNS
LIBOR/NNP
8/CD
3\/4/CD
%/NN
one/CD
month/NN
;/:
8/CD
3\/4/CD
%/NN
three/CD
months/NNS
;/:
8/CD
9\/16/CD
%/NN
six/CD
months/NNS
;/:
8/CD
9\/16/CD
%/NN
one/CD
year/NN
./.
The/DT
average/NN
of/IN
interbank/RB
offered/VBN
rates/NNS
for/IN
dollar/NN
deposits/NNS
in/IN
the/DT
London/NNP
market/NN
based/VBN
on/IN
quotations/NNS
at/IN
five/CD
major/JJ
banks/NNS
./.
FOREIGN/JJ
PRIME/JJ
RATES/NNS
:/:
Canada/NNP
13.50/CD
%/NN
;/:
Germany/NNP
8.50/CD
%/NN
;/:
Japan/NNP
4.875/CD
%/NN
;/:
Switzerland/NNP
8.50/CD
%/NN
;/:
Britain/NNP
15/CD
%/NN
./.
These/DT
rate/NN
indications/NNS
are/VBP
n't/RB
directly/RB
comparable/JJ
;/:
lending/NN
practices/NNS
vary/VBP
widely/RB
by/IN
location/NN
./.
TREASURY/NN
BILLS/NNS
:/:
Results/NNS
of/IN
the/DT
Tuesday/NNP
,/,
October/NNP
10/CD
,/,
1989/CD
,/,
auction/NN
of/IN
short-term/JJ
U.S./NNP
government/NN
bills/NNS
,/,
sold/VBN
at/IN
a/DT
discount/NN
from/IN
face/NN
value/NN
in/IN
units/NNS
of/IN
$/$
10,000/CD
to/TO
$/$
1/CD
million/CD
:/:
7.63/CD
%/NN
13/CD
weeks/NNS
;/:
7.60/CD
%/NN
26/CD
weeks/NNS
./.
FEDERAL/NNP
HOME/NNP
LOAN/NNP
MORTGAGE/NNP
CORP/NNP
./.
Freddie/NNP
Mac/NNP
yields/NNS
on/IN
30-year/JJ
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
./.
9.91/CD

%/NN
,/,
standard/JJ
conventional/JJ
fixedrate/JJ
mortgages/NNS
;/:
7.875/CD
%/NN
,/,
2/CD
%/NN
rate/NN
capped/VBN
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNP
Inc/NNP
./.
FEDERAL/NNP
NATIONAL/NNP
MORTGAGE/NNP
ASSOCIATION/NNP
Fannie/NNP
Mae/NNP
yields/NNS
on/IN
30/CD
year/NN
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
par/NN
9.86/CD
%/NN
,/,
standard/JJ
conventional/JJ
fixed-rate/JJ
mortgages/NNS
;/:
8.85/CD
%/NN
,/,
6\/2/CD
rate/NN
capped/VBD
one-year/JJ
adjustable/JJ
rate/NN
mortgages/NNS
./.
Source/NN
:/:
Telerate/NNP
Systems/NNP
Inc/NNP
./.
MERRILL/NNP
LYNCH/NNP
READY/NNP
ASSETS/NNP
TRUST/NNP
:/:
8.33/CD
%/NN
./.
Annualized/JJ
average/JJ
rate/NN
of/IN
return/NN
after/IN
expenses/NNS
for/IN
the/DT
past/JJ
30/CD
days/NNS
;/:
not/RB
a/DT
forecast/NN
of/IN
future/JJ
returns/NNS
./.
Pension/NN
funds/NNS
,/,
insurers/NNS
and/CC
other/JJ
behemoths/NNS
of/IN
the/DT
investing/NN
world/NN
said/VBD
they/PRP
began/VBD
scooping/VBG
up/RP
stocks/NNS
during/IN
Friday/NNP
's/POS
market/NN
rout/NN
./.
And/CC
they/PRP
plan/VBP
to/TO
buy/VB
more/JJR
today/NN
./.
Rightly/RB
or/CC
wrongly/RB
,/,
many/JJ
giant/JJ
institutional/JJ
investors/NNS
appear/VBP
to/TO
be/VB
fighting/VBG
the/DT
latest/JJS
war/NN
by/IN
applying/VBG
the/DT
lesson/NN
they/PRP
learned/VBD
in/IN
the/DT
October/NNP
1987/CD
crash/NN
:/:
Buying/VBG
at/IN
the/DT
bottom/NN
pays/VBZ
off/RP
./.
To/TO
be/VB
sure/JJ
,/,
big/JJ
investors/NNS
might/MD
put/VB
away/RP
their/PRP$
checkbooks/NNS
in/IN
a/DT
hurry/NN
if/IN
stocks/NNS
open/VBP
sharply/RB
lower/JJR
today/NN
./.
They/PRP
could/MD
still/RB
panic/VB
and/CC
bail/VB
out/IN
of/IN
the/DT
market/NN
./.
But/CC
their/PRP$
1987/CD
performance/NN
indicates/VBZ
that/IN
they/PRP
wo/MD
n't/RB
abandon/VB
stocks/NNS
unless/IN
conditions/NNS
get/VBP
far/RB
worse/JJR
./.
``/``
Last/JJ
time/NN
,/,
we/PRP
got/VBD
rewarded/VBN
for/IN
going/VBG
out/RB
and/CC
buying/VBG
stocks/NNS
when/WRB
the/DT
panic/NN
was/VBD
the/DT
worst/JJS
,/,
''/''
said/VBD
John/NNP
W./NNP
Rogers/NNP
,/,
president/NN
of/IN
Chicago-based/JJ
Ariel/NNP
Capital/NNP
Management/NNP
Inc./NNP
,/,
which/WDT
manages/VBZ
$/$
1.1/CD
billion/CD
of/IN
stocks/NNS
./.
Mr./NNP
Rogers/NNP
spent/VBD
half/PDT
his/PRP$
cash/NN
on/IN
hand/NN
Friday/NNP
for/IN
``/``
our/PRP$
favorite/JJ
stocks/NNS
that/WDT
have/VBP
fallen/VBN
apart/RB
./.
''/''
He/PRP
expects/VBZ
to/TO
invest/VB
the/DT
rest/NN
if/IN
the/DT
market/NN
weakens/VBZ
further/RB
./.
Denver-based/JJ
portfolio/NN
manager/NN
James/NNP
Craig/NNP
was/VBD
n't/RB
daunted/VBD
when/WRB
Friday/NNP
's/POS
rout/NN
shaved/VBD
$/$
40/CD
million/CD
from/IN
the/DT
value/NN
of/IN
the/DT
$/$
752/CD
million/CD
Janus/NNP
Fund/NNP
he/PRP
oversees/VBZ
./.
``/``
I/PRP
waited/VBD
to/TO
make/VB
sure/JJ
all/PDT
the/DT
program/NN
trades/NNS
had/VBD
kicked/VBN
through/RP
,/,
''/''
he/PRP
said/VBD
./.
Then/RB
he/PRP
jumped/VBD
into/IN
the/DT
market/NN
:/:
``/``
I/PRP
spent/VBD
$/$
30/CD
million/CD
in/IN
the/DT
last/JJ
half-hour/NN
./.
''/''
Other/JJ
money/NN
managers/NNS
also/RB
opened/VBD
their/PRP$
wallets/NNS
./.
``/``
I/PRP
was/VBD
buying/VBG
at/IN
the/DT
close/JJ
Friday/NNP
I/PRP
'll/MD
be/VB
buying/VBG
again/RB
because/IN
I/PRP
know/VBP
we/PRP
're/VBP
getting/VBG
good/JJ
value/NN
,/,
''/''
said/VBD
Frederick/NNP
A./NNP
Moran/NNP
,/,
president/NN
of/IN
Moran/NNP
Asset/NNP
Management/NNP
Inc./NNP
,/,
Greenwich/NNP
,/,
Conn/NNP
./.
``/``
There/EX
is/VBZ
no/DT
justification/NN
on/IN
the/DT
fundamental/JJ
level/NN
for/IN
this/DT
crash/NN
./.
''/''
Unlike/IN
mutual/JJ
funds/NNS
,/,
which/WDT
can/MD
be/VB
forced/VBN
to/TO
sell/VB
stockholdings/NNS
when/WRB
investors/NNS
rush/VBP
to/TO
withdraw/VB
money/NN
,/,
big/JJ
investors/NNS
such/JJ
as/IN
pension/NN
funds/NNS
and/CC
insurance/NN
companies/NNS
can/MD
decide/VB
to/TO
ride/VB
out/RP
market/NN
storms/NNS
without/IN
jettisoning/VBG
stock/NN
./.
Most/RBS
often/RB
,/,
they/PRP
do/VBP
just/RB
that/DT
,/,
because/IN
stocks/NNS
have/VBP
proved/VBN
to/TO
be/VB
the/DT
best-performing/JJ
long-term/JJ
investment/NN
,/,
attracting/VBG
about/RB
$/$
1/CD
trillion/CD
from/IN
pension/NN
funds/NNS
alone/RB
./.
``/``
If/IN
you/PRP
bought/VBD
after/IN
the/DT
crash/NN
,/,
you/PRP
did/VBD
very/RB
very/RB
well/RB
off/IN
the/DT
bottom/NN
,/,
''/''
said/VBD
Stephen/NNP
B./NNP
Timbers/NNP
,/,
chief/JJ
investment/NN
officer/NN
of/IN
Chicago-based/JJ
Kemper/NNP
Financial/NNP
Services/NNP
Inc/NNP
./.
The/DT
$/$
56/CD
billion/CD
California/NNP
Public/NNP
Employees/NNP
Retirement/NNP
System/NNP
,/,
for/IN
one/CD
,/,
added/VBD
$/$
1/CD
billion/CD
to/TO
its/PRP$
stock/NN
portfolio/NN
two/CD
years/NNS
ago/RB
./.
``/``
The/DT
last/JJ
crash/NN
taught/VBD
institutional/JJ
investors/NNS
that/IN
they/PRP
have/VBP
to/TO
be/VB
long-term/JJ
holders/NNS
,/,
and/CC
that/IN
they/PRP
ca/MD
n't/RB
react/VB
to/TO
short-term/JJ
events/NNS
,/,
good/JJ
or/CC
bad/JJ
,/,
''/''
said/VBD
Stephen/NNP
L./NNP
Nesbitt/NNP
,/,
senior/JJ
vice/NN
president/NN
for/IN
the/DT
pension/NN
consultants/NNS
Wilshire/NNP
Associates/NNP
in/IN
Santa/NNP
Monica/NNP
,/,
Calif/NNP
./.
``/``
Those/DT
that/WDT
pulled/VBD
out/RP
(/(
of/IN
stocks/NNS
it/PRP
,/,
''/''
he/PRP
said/VBD
,/,
``/``
so/RB
I/PRP
doubt/VBP
you/PRP
'll/MD
see/VB
any/DT
significant/JJ
changes/NNS
''/''
in/IN
institutional/JJ
portfolios/NNS
as/IN
a/DT
result/NN
of/IN
Friday/NNP
's/POS
decline/NN
./.
Stocks/NNS
,/,
as/IN
measured/VBN
by/IN
the/DT
Standard/NNP
&/CC
Poor/NNP
's/POS
500-stock/NNP
index/NN
,/,
have/VBP
been/VBN
stellar/JJ
performers/NNS
this/DT
year/NN
,/,
rising/VBG
27.97/CD
%/NN
before/IN
Friday/NNP
's/POS
plunge/NN
,/,
excluding/VBG
dividends/NNS
./.
Even/RB
Friday/NNP
's/POS
slump/NN
leaves/VBZ
investors/NNS
ahead/RB
more/JJR
than/IN
20/CD
%/NN
,/,
well/RB
above/IN
the/DT
annual/JJ
average/NN
for/IN
stocks/NNS
over/IN
several/JJ
decades/NNS
./.
``/``
You/PRP
could/MD
go/VB
down/RB
400/CD
points/NNS
and/CC
still/RB
have/VB
a/DT
good/JJ
year/NN
in/IN
the/DT
market/NN
,/,
''/''
said/VBD
James/NNP
D./NNP
Awad/NNP
,/,
president/NN
of/IN
New/NNP
York-based/JJ
BMI/NNP
Capital/NNP
Corp/NNP
./.
Mr./NNP
Awad/NNP
,/,
however/RB
,/,
worries/VBZ
that/IN
the/DT
market/NN
``/``
could/MD
go/VB
down/RB
800/CD
or/CC
900/CD
points/NNS
in/IN
the/DT
next/JJ
few/JJ
days/NNS
./.
It/PRP
can/MD
happen/VB
before/IN
you/PRP
can/MD
turn/VB
around/RB
./.
''/''
He/PRP
said/VBD
he/PRP
discerns/VBZ
many/JJ
parallels/NNS
with/IN
1987/CD
,/,
including/VBG
the/DT
emphasis/NN
on/IN
takeover/NN
stocks/NNS
and/CC
the/DT
re-emergence/NN
of/IN
computerized/JJ
program/NN
trading/NN
./.
``/``
The/DT
only/JJ
thing/NN
you/PRP
do/VBP
n't/RB
have/VB
,/,
''/''
he/PRP
said/VBD
,/,
``/``
is/VBZ
the/DT
`/``
portfolio/NN
insurance/NN
'/''
phenomenon/NN
overlaid/VBN
on/IN
the/DT
rest/NN
./.
''/''
Most/RBS
institutional/JJ
investors/NNS
have/VBP
abandoned/VBN
the/DT
portfolio/NN
insurance/NN
hedging/NN
technique/NN
,/,
which/WDT
is/VBZ
widely/RB
thought/VBN
to/TO
have/VB
worsened/VBN
the/DT
1987/CD
crash/NN
./.
Not/RB
really/RB
insurance/NN
,/,
this/DT
tactic/NN
was/VBD
designed/VBN
to/TO
soften/VB
the/DT
blow/NN
of/IN
declining/VBG
stock/NN
prices/NNS
and/CC
generate/VB
an/DT
offsetting/VBG
profit/NN
by/IN
selling/VBG
waves/NNS
of/IN
S&P/NNP
futures/NNS
contracts/NNS
./.
In/IN
its/PRP$
severest/JJS
test/NN
,/,
the/DT
$/$
60/CD
billion/CD
of/IN
portfolio/NN
insurance/NN
in/IN
effect/NN
in/IN
the/DT
1987/CD
crash/NN
did/VBD
n't/RB
work/VB
,/,
as/IN
stock/NN
buyers/NNS
disappeared/VBD
and/CC
stock/NN
and/CC
futures/NNS
prices/NNS
became/VBD
disconnected/VBN
./.
Even/RB
without/IN
portfolio/NN
insurance/NN
,/,
market/NN
conditions/NNS
were/VBD
grim/JJ
Friday/NNP
,/,
money/NN
managers/NNS
said/VBD
./.
Neil/NNP
Weisman/NNP
,/,
whose/WP$
New/NNP
York-based/JJ
Chilmark/NNP
Capital/NNP
Partners/NNP
had/VBD
converted/VBN
85/CD
%/NN
of/IN
its/PRP$
$/$
220/CD
million/CD
investment/NN
pool/NN
to/TO
cash/VB
in/IN
recent/JJ
months/NNS
,/,
said/VBD
he/PRP
was/VBD
besieged/VBN
by/IN
Wall/NNP
Street/NNP
firms/NNS
Friday/NNP
asking/VBG
him/PRP
to/TO
take/VB
stock/NN
off/IN
their/PRP$
hands/NNS
./.
``/``
We/PRP
got/VBD
calls/NNS
from/IN
big/JJ
block/NN
houses/NNS
asking/VBG
us/PRP
if/IN
we/PRP
want/VBP
to/TO
make/VB
bids/NNS
on/IN
anything/NN
,/,
''/''
said/VBD
Mr./NNP
Weisman/NNP
,/,
who/WP
,/,
happy/JJ
with/IN
his/PRP$
returns/NNS
on/IN
investments/NNS
chalked/VBN
up/RP
earlier/RBR
,/,
declined/VBD
the/DT
offers/NNS
./.
Mr./NNP
Weisman/NNP
predicts/VBZ
stocks/NNS
will/MD
appear/VB
to/TO
stabilize/VB
in/IN
the/DT
next/JJ
few/JJ
days/NNS
before/IN
declining/VBG
again/RB
,/,
trapping/VBG
more/JJR
investors/NNS
./.
``/``
I/PRP
think/VBP
it/PRP
will/MD
be/VB
a/DT
rigor/NN
mortis/NN
rally/NN
,/,
''/''
he/PRP
said/VBD
./.
Meanwhile/RB
,/,
Friday/NNP
brought/VBD
a/DT
reprieve/NN
for/IN
money/NN
managers/NNS
whose/WP$
investment/NN
styles/NNS
had/VBD
put/VBN
them/PRP
at/IN
odds/NNS
with/IN
the/DT
market/NN
rally/NN
./.
Especially/RB
gleeful/JJ
were/VBD
the/DT
short/JJ
sellers/NNS
,/,
who/WP
have/VBP
been/VBN
pounded/VBN
by/IN
this/DT
year/NN
's/POS
market/NN
climb/NN
./.
The/DT
shorts/NNS
sell/VBP
borrowed/VBN
shares/NNS
,/,
hoping/VBG
to/TO
profit/NN
by/IN
replacing/VBG
them/PRP
later/RB
at/IN
a/DT
lower/JJR
price/NN
./.
The/DT
nation/NN
's/POS
largest/JJS
short-selling/NN
operation/NN
is/VBZ
Feshbach/NNP
Brothers/NNP
,/,
Palo/NNP
Alto/NNP
,/,
Calif./NNP
,/,
which/WDT
said/VBD
last/JJ
May/NNP
that/IN
its/PRP$
short/JJ
positions/NNS
had/VBD
shown/VBN
losses/NNS
of/IN
10/CD
%/NN
for/IN
the/DT
year/NN
up/IN
to/TO
that/DT
point/NN
./.
All/DT
that/WDT
now/RB
has/VBZ
changed/VBN
./.
``/``
We/PRP
're/VBP
ahead/RB
for/IN
the/DT
year/NN
because/IN
of/IN
Friday/NNP
,/,
''/''
said/VBD
the/DT
firm/NN
's/POS
Kurt/NNP
Feshbach/NNP
./.
``/``
We/PRP
're/VBP
not/RB
making/VBG
a/DT
killing/NN
,/,
but/CC
we/PRP
had/VBD
a/DT
good/JJ
day/NN
./.
''/''
Food/NNP
and/CC
Drug/NNP
Administration/NNP
spokesman/NN
Jeff/NNP
Nesbit/NNP
said/VBD
the/DT
agency/NN
has/VBZ
turned/VBN
over/RP
evidence/NN
in/IN
a/DT
criminal/JJ
investigation/NN
concerning/VBG
Vitarine/NNP
Pharmaceuticals/NNP
Inc./NNP
to/TO
the/DT
U.S./NNP
Attorney/NNP
's/POS
office/NN
in/IN
Baltimore/NNP
./.
Neither/DT
Vitarine/NNP
nor/CC
any/DT
of/IN
the/DT
Springfield/NNP
Gardens/NNP
,/,
N.Y./NNP
,/,
company/NN
's/POS
officials/NNS
or/CC
employees/NNS
have/VBP
been/VBN
charged/VBN
with/IN
any/DT
crimes/NNS
./.
Vitarine/NNP
won/VBD
approval/NN
to/TO
market/VB
a/DT
version/NN
of/IN
a/DT
blood/NN
pressure/NN
medicine/NN
but/CC
acknowledged/VBD
that/IN
it/PRP
substituted/VBD
a/DT
SmithKline/NNP
Beecham/NNP
PLC/NNP
product/NN
as/IN
its/PRP$
own/JJ
in/IN
tests/NNS
./.
Mr./NNP
Nesbit/NNP
also/RB
said/VBD
the/DT
FDA/NNP
has/VBZ
asked/VBN
Bolar/NNP
Pharmaceutical/NNP
Co./NNP
to/TO
recall/VB
at/IN
the/DT
retail/JJ
level/NN
its/PRP$
urinary/JJ
tract/NN
antibiotic/NN
./.
But/CC
so/RB
far/RB
the/DT
company/NN
has/VBZ
n't/RB
complied/VBN
with/IN
that/DT
request/NN
,/,
the/DT
spokesman/NN
said/VBD
./.
Bolar/NNP
,/,
the/DT
subject/NN
of/IN
a/DT
criminal/JJ
investigation/NN
by/IN
the/DT
FDA/NNP
and/CC
the/DT
Inspector/NNP
General/NNP
's/POS
office/NN
of/IN
the/DT
Health/NNP
and/CC
Human/NNP
Services/NNP
Department/NNP
,/,
only/RB
agreed/VBD
to/TO
recall/VB
two/CD
strengths/NNS
of/IN
its/PRP$
version/NN
of/IN
Macrodantin/NNP
``/``
as/RB
far/RB
down/RB
as/IN
direct/JJ
customers/NNS
,/,
mostly/RB
wholesalers/NNS
,/,
''/''
Mr./NNP
Nesbit/NNP
said/VBD
./.
Bolar/NNP
,/,
of/IN
Copiague/NNP
,/,
N.Y./NNP
,/,
earlier/RBR
began/VBD
a/DT
voluntary/JJ
recall/NN
of/IN
both/DT
its/PRP$
100/CD
milligram/NN
and/CC
50/CD
milligram/NN
versions/NNS
of/IN
the/DT
drug/NN
./.
The/DT
FDA/NNP
has/VBZ
said/VBD
it/PRP
presented/VBD
evidence/NN
it/PRP
uncovered/VBD
to/TO
the/DT
company/NN
indicating/VBG
that/IN
Bolar/NNP
substituted/VBD
the/DT
brand-name/JJ
product/NN
for/IN
its/PRP$
own/JJ
to/TO
gain/VB
government/NN
approval/NN
to/TO
sell/VB
generic/JJ
versions/NNS
of/IN
Macrodantin/NNP
./.
Bolar/NNP
has/VBZ
denied/VBN
that/IN
it/PRP
switched/VBD
the/DT
brand-name/JJ
product/NN
for/IN
its/PRP$
own/JJ
in/IN
such/JJ
testing/NN
./.
The/DT
West/JJ
German/JJ
retailer/NN
ASKO/NNP
Deutsche/NNP
Kaufhaus/NNP
AG/NNP
plans/VBZ
to/TO
challenge/VB
the/DT
legality/NN
of/IN
a/DT
widely/RB
employed/VBN
anti-takeover/JJ
defense/NN
of/IN
companies/NNS
in/IN
the/DT
Netherlands/NNPS
./.
The/DT
eventual/JJ
court/NN
decision/NN
could/MD
become/VB
a/DT
landmark/NN
in/IN
Dutch/JJ
corporate/JJ
law/NN
because/IN
the/DT
lawsuit/NN
ASKO/NNP
plans/VBZ
to/TO
file/VB
would/MD
be/VB
the/DT
first/JJ
to/TO
challenge/VB
the/DT
entire/JJ
principle/NN
and/CC
practice/NN
of/IN
companies/NNS
issuing/VBG
voting/JJ
preferred/JJ
shares/NNS
to/TO
management-controlled/JJ
trusts/NNS
to/TO
dilute/VB
voting/NN
power/NN
of/IN
common/JJ
stockholders/NNS
./.
Up/IN
to/TO
now/RB
only/JJ
specific/JJ
aspects/NNS
of/IN
these/DT
defenses/NNS
have/VBP
been/VBN
challenged/VBN
,/,
though/IN
unsuccessfully/RB
,/,
ASKO/NNP
's/POS
Dutch/JJ
lawyers/NNS
noted/VBD
./.
Should/MD
the/DT
courts/NNS
uphold/VB
the/DT
validity/NN
of/IN
this/DT
type/NN
of/IN
defense/NN
,/,
ASKO/NNP
will/MD
then/RB
ask/VB
the/DT
court/NN
to/TO
overturn/VB
such/PDT
a/DT
vote-diluting/JJ
maneuver/NN
recently/RB
deployed/VBN
by/IN
Koninklijke/NNP
Ahold/NNP
NV/NNP
./.
ASKO/NNP
says/VBZ
the/DT
Dutch-based/JJ
international/JJ
food/NN
retailer/NN
had/VBD
n't/RB
reasonable/JJ
grounds/NNS
to/TO
issue/VB
preferred/JJ
stock/NN
to/TO
a/DT
friendly/JJ
trust/NN
and/CC
thus/RB
dilute/VB
the/DT
worth/NN
and/CC
voting/NN
power/NN
of/IN
ASKO/NNP
and/CC
other/JJ
shareholders/NNS
./.
Speaking/VBG
through/IN
its/PRP$
Dutch/JJ
lawyers/NNS
,/,
ASKO/NNP
also/RB
disclosed/VBD
it/PRP
holds/VBZ
a/DT
15/CD
%/NN
stake/NN
in/IN
Ahold/NNP
./.
It/PRP
was/VBD
previously/RB
thought/VBN
ASKO/NNP
held/VBD
a/DT
13.6/CD
%/NN
stake/NN
that/WDT
was/VBD
accumulated/VBN
since/IN
July/NNP
./.
A/DT
spokesman/NN
for/IN
Ahold/NNP
said/VBD
his/PRP$
company/NN
is/VBZ
confident/JJ
of/IN
its/PRP$
own/JJ
position/NN
and/CC
the/DT
propriety/NN
of/IN
the/DT
preferred-share/NN
issue/NN
./.
He/PRP
termed/VBD
ASKO/NNP
's/POS
legal/JJ
actions/NNS
as/IN
``/``
unproductive/JJ
''/''
to/TO
international/JJ
cooperation/NN
among/IN
European/JJ
retailers/NNS
./.
Chase/NNP
Manhattan/NNP
Bank/NNP
Chairman/NNP
Willard/NNP
Butcher/NNP
is/VBZ
a/DT
conservative/JJ
banker/NN
and/CC
a/DT
loyal/JJ
Republican/NNP
,/,
but/CC
on/IN
Friday/NNP
morning/NN
he/PRP
had/VBD
few/JJ
kind/JJ
words/NNS
for/IN
President/NNP
Bush/NNP
's/POS
economic/JJ
policy-making/NN
./.
``/``
There/EX
are/VBP
some/DT
very/RB
significant/JJ
issues/NNS
out/RB
there/RB
,/,
such/JJ
as/IN
the/DT
fiscal/JJ
deficit/NN
,/,
the/DT
trade/NN
deficit/NN
,/,
our/PRP$
relations/NNS
with/IN
Japan/NNP
,/,
that/WDT
have/VBP
to/TO
be/VB
the/DT
subject/NN
of/IN
major/JJ
initiatives/NNS
,/,
''/''
he/PRP
said/VBD
in/IN
an/DT
interview/NN
./.
``/``
I/PRP
'd/MD
like/VB
to/TO
see/VB
that/DT
initiative/NN
,/,
and/CC
I/PRP
have/VBP
n't/RB
./.
There/EX
is/VBZ
n't/RB
a/DT
big/JJ
shot/NN
,/,
an/DT
agenda/NN
./.
''/''
A/DT
few/JJ
hours/NNS
later/RB
,/,
the/DT
stock/NN
market/NN
dropped/VBD
190/CD
points/NNS
./.
Politicians/NNS
tried/VBD
to/TO
finger/VB
each/DT
other/JJ
for/IN
the/DT
blame/NN
,/,
although/IN
many/JJ
analysts/NNS
doubt/VBP
that/IN
Washington/NNP
was/VBD
singly/RB
responsible/JJ
for/IN
Wall/NNP
Street/NNP
's/POS
woes/NNS
./.
But/CC
Mr./NNP
Butcher/NNP
's/POS
comments/NNS
make/VBP
one/CD
thing/NN
clear/JJ
:/:
Some/DT
on/IN
Wall/NNP
Street/NNP
wonder/VBP
if/IN
anyone/NN
is/VBZ
in/IN
charge/NN
of/IN
economic/JJ
policy/NN
./.
Consider/VB
this/DT
:/:
--/:
By/IN
11:59/CD
p.m./RB
tonight/NN
,/,
President/NNP
Bush/NNP
must/MD
order/VB
$/$
16/CD
billion/CD
of/IN
automatic/JJ
,/,
across-the-board/JJ
cuts/NNS
in/IN
government/NN
spending/NN
to/TO
comply/VB
with/IN
the/DT
Gramm-Rudman/NNP
budget/NN
law/NN
./.
The/DT
cuts/NNS
are/VBP
necessary/JJ
because/IN
Congress/NNP
and/CC
the/DT
administration/NN
have/VBP
failed/VBN
to/TO
reach/VB
agreement/NN
on/IN
a/DT
deficit-cutting/JJ
bill/NN
./.
``/``
We/PRP
simply/RB
do/VBP
n't/RB
have/VB
strong/JJ
leadership/NN
to/TO
try/VB
to/TO
reduce/VB
the/DT
deficit/NN
and/CC
make/VB
tough/JJ
choices/NNS
,/,
''/''
House/NNP
Budget/NNP
Committee/NNP
Chairman/NNP
Leon/NNP
Panetta/NNP
D./NNP
,/,
Calif/NNP
./.
NBC/NNP
News/NNP
's/POS
``/``
Meet/NNP
the/DT
Press/NNP
./.
''/''
--/:
For/IN
the/DT
last/JJ
two/CD
weeks/NNS
,/,
the/DT
Bush/NNP
administration/NN
and/CC
the/DT
Federal/NNP
Reserve/NNP
have/VBP
been/VBN
engaged/VBN
in/IN
a/DT
semi-public/JJ
battle/NN
over/IN
international/JJ
economic/JJ
policy/NN
./.
The/DT
administration/NN
has/VBZ
been/VBN
trying/VBG
to/TO
push/VB
the/DT
dollar/NN
lower/RBR
;/:
the/DT
Fed/NNP
has/VBZ
been/VBN
resisting/VBG
./.
``/``
One/CD
of/IN
the/DT
things/NNS
that/WDT
continues/VBZ
to/TO
worry/VB
me/PRP
is/VBZ
this/DT
monetary/JJ
warfare/NN
between/IN
the/DT
Treasury/NNP
Department/NNP
and/CC
the/DT
Federal/NNP
Reserve/NNP
Board/NNP
,/,
''/''
said/VBD
Lawrence/NNP
Kudlow/NNP
,/,
a/DT
Bear/NNP
,/,
Stearns/NNP
&/CC
Co./NNP
economist/NN
,/,
on/IN
ABC/NNP
's/POS
``/``
This/NNP
Week/NNP
./.
''/''
--/:
The/DT
administration/NN
has/VBZ
sent/VBN
out/RP
confusing/JJ
signals/NNS
about/IN
its/PRP$
response/NN
to/TO
a/DT
recent/JJ
spate/NN
of/IN
airline/NN
takeovers/NNS
./.
Last/JJ
month/NN
,/,
Transportation/NNP
Secretary/NNP
Sam/NNP
Skinner/NNP
forced/VBD
Northwest/NNP
Airlines/NNP
to/TO
reduce/VB
a/DT
stake/NN
held/VBN
by/IN
KLM/NNP
Royal/NNP
Dutch/NNP
Airlines/NNP
./.
But/CC
he/PRP
has/VBZ
since/RB
run/VBN
into/IN
opposition/NN
from/IN
the/DT
Treasury/NNP
and/CC
the/DT
White/NNP
House/NNP
over/IN
that/DT
decision/NN
./.
And/CC
he/PRP
has/VBZ
kept/VBN
mum/JJ
on/IN
how/WRB
his/PRP$
decision/NN
might/MD
affect/VB
a/DT
bid/NN
for/IN
United/NNP
Airlines/NNP
,/,
which/WDT
includes/VBZ
a/DT
big/JJ
stake/NN
by/IN
British/NNP
Airways/NNP
PLC/NNP
./.
Some/DT
analysts/NNS
say/VBP
uncertainty/NN
about/IN
Washington/NNP
's/POS
anti-takeover/JJ
policy/NN
was/VBD
one/CD
reason/NN
that/IN
financing/NN
for/IN
the/DT
United/NNP
Airlines/NNP
takeover/NN
fell/VBD
through/RP
--/:
the/DT
event/NN
that/WDT
triggered/VBD
the/DT
market/NN
drop/NN
./.
In/IN
many/JJ
ways/NNS
,/,
the/DT
backdrop/NN
to/TO
Friday/NNP
's/POS
stock/NN
decline/NN
is/VBZ
eerily/RB
similar/JJ
to/TO
that/DT
of/IN
October/NNP
1987/CD
's/POS
508-point/JJ
crash/NN
./.
Then/RB
,/,
as/IN
now/RB
,/,
the/DT
budget/NN
debate/NN
was/VBD
behind/IN
schedule/NN
and/CC
automatic/JJ
spending/JJ
cuts/NNS
were/VBD
within/IN
days/NNS
of/IN
taking/VBG
hold/NN
./.
The/DT
Treasury/NNP
was/VBD
locked/VBN
in/IN
a/DT
battle/NN
over/IN
international/JJ
economic/JJ
policy/NN
,/,
although/IN
at/IN
that/DT
time/NN
it/PRP
was/VBD
with/IN
West/JJ
German/JJ
officials/NNS
rather/RB
than/IN
the/DT
Federal/NNP
Reserve/NNP
./.
And/CC
concern/NN
about/IN
official/JJ
actions/NNS
aimed/VBN
at/IN
takeovers/NNS
--/:
then/RB
by/IN
the/DT
tax-writing/JJ
House/NNP
Ways/NNP
and/CC
Means/NNP
Committee/NNP
rather/RB
than/IN
the/DT
Transportation/NNP
Department/NNP
--/:
were/VBD
making/VBG
markets/NNS
nervous/JJ
./.
The/DT
1987/CD
crash/NN
brought/VBD
the/DT
Reagan/NNP
administration/NN
and/CC
Democratic/JJ
lawmakers/NNS
to/TO
the/DT
table/NN
for/IN
the/DT
first/JJ
budget/NN
summit/NN
,/,
resulting/VBG
in/IN
a/DT
two-year/JJ
plan/NN
to/TO
reduce/VB
the/DT
deficit/NN
by/IN
more/JJR
than/IN
$/$
76/CD
billion/CD
--/:
even/RB
though/IN
the/DT
deficit/NN
actually/RB
rose/VBD
by/IN
nearly/RB
$/$
12/CD
billion/CD
during/IN
that/DT
period/NN
./.
But/CC
,/,
barring/VBG
further/JJR
drops/NNS
in/IN
the/DT
market/NN
this/DT
week/NN
,/,
a/DT
similar/JJ
outcome/NN
does/VBZ
n't/RB
seem/VB
likely/RB
this/DT
year/NN
./.
Lawmakers/NNS
and/CC
administration/NN
officials/NNS
agree/VBP
that/IN
Friday/NNP
's/POS
drop/NN
,/,
by/IN
itself/PRP
,/,
is/VBZ
n't/RB
enough/JJ
to/TO
force/VB
both/DT
sides/NNS
back/RB
to/TO
the/DT
table/NN
to/TO
try/VB
to/TO
reach/VB
a/DT
deficit-reduction/NN
agreement/NN
that/WDT
would/MD
be/VB
more/RBR
serious/JJ
and/CC
more/RBR
far-reaching/JJ
than/IN
last/JJ
spring/NN
's/POS
gimmick-ridden/JJ
plan/NN
,/,
which/WDT
still/RB
is/VBZ
n't/RB
fully/RB
implemented/VBN
./.
One/CD
of/IN
the/DT
biggest/JJS
reasons/NNS
that/IN
new/JJ
talks/NNS
are/VBP
n't/RB
likely/JJ
to/TO
come/VB
about/RP
is/VBZ
that/IN
,/,
as/IN
everyone/NN
learned/VBD
in/IN
1987/CD
,/,
the/DT
economy/NN
and/CC
the/DT
market/NN
can/MD
survive/VB
a/DT
one-day/JJ
508-point/JJ
tumble/NN
./.
``/``
Everybody/NN
thought/VBD
we/PRP
were/VBD
looking/VBG
at/IN
a/DT
repetition/NN
of/IN
1929/CD
,/,
that/IN
we/PRP
were/VBD
looking/VBG
at/IN
a/DT
recession/NN
,/,
''/''
Rep./NNP
Panetta/NNP
said/VBD
yesterday/NN
in/IN
an/DT
interview/NN
./.
``/``
That/DT
did/VBD
not/RB
happen/VB
./.
They/PRP
learned/VBD
they/PRP
could/MD
survive/VB
it/PRP
without/IN
much/JJ
problem/NN
./.
''/''
But/CC
administration/NN
officials/NNS
privately/RB
agree/VBP
with/IN
Mr./NNP
Panetta/NNP
,/,
who/WP
said/VBD
a/DT
precipitous/JJ
drop/NN
this/DT
week/NN
``/``
is/VBZ
going/VBG
to/TO
force/VB
the/DT
president/NN
and/CC
Congress/NNP
to/TO
take/VB
a/DT
much/JJ
harder/JJR
look/NN
at/IN
fiscal/JJ
policy/NN
./.
''/''
In/IN
that/DT
case/NN
,/,
there/EX
will/MD
be/VB
plenty/NN
of/IN
blame/NN
to/TO
go/VB
around/RP
./.
``/``
There/EX
is/VBZ
an/DT
underlying/JJ
concern/NN
on/IN
the/DT
part/NN
of/IN
the/DT
American/JJ
people/NNS
--/:
and/CC
there/RB
should/MD
be/VB
-/:
that/IN
the/DT
administration/NN
has/VBZ
not/RB
gone/VBN
far/RB
enough/RB
in/IN
cutting/VBG
this/DT
deficit/NN
and/CC
that/IN
Congress/NNP
has/VBZ
been/VBN
unwilling/JJ
to/TO
cut/VB
what/WP
the/DT
administration/NN
asked/VBD
us/PRP
to/TO
cut/VB
,/,
''/''
said/VBD
Senate/NNP
Finance/NNP
Committee/NNP
Chairman/NNP
Lloyd/NNP
Bentsen/NNP
D./NNP
,/,
Texas/NNP
Nevertheless/RB
,/,
it/PRP
clearly/RB
will/MD
take/VB
more/JJR
than/IN
Friday/NNP
's/POS
190-point/JJ
decline/NN
to/TO
overcome/VB
the/DT
bitter/JJ
feelings/NNS
that/WDT
have/VBP
developed/VBN
between/IN
lawmakers/NNS
and/CC
White/NNP
House/NNP
Budget/NNP
Director/NNP
Richard/NNP
Darman/NNP
over/IN
the/DT
capital-gains/NNS
fight/NN
./.
Hill/NNP
Democrats/NNPS
are/VBP
particularly/RB
angry/JJ
over/IN
Mr./NNP
Bush/NNP
's/POS
claim/NN
that/IN
the/DT
capital-gains/NNS
cut/NN
was/VBD
part/NN
of/IN
April/NNP
's/POS
budget/NN
accord/NN
and/CC
his/PRP$
insistence/NN
on/IN
combining/VBG
it/PRP
with/IN
the/DT
deficit-reduction/NN
legislation/NN
./.
``/``
There/EX
is/VBZ
no/DT
prospect/NN
of/IN
any/DT
so-called/JJ
grand/JJ
compromise/NN
or/CC
deal/NN
next/JJ
year/NN
because/IN
the/DT
administration/NN
simply/RB
did/VBD
n't/RB
live/VB
up/IN
to/TO
this/DT
year/NN
's/POS
deal/NN
,/,
''/''
Senate/NNP
Majority/NNP
Leader/NNP
George/NNP
Mitchell/NNP
D./NNP
,/,
Maine/NNP
CBS/NNP
News/NNP
's/POS
``/``
Face/NNP
the/DT
Nation/NNP
./.
''/''
During/IN
last/JJ
week/NN
's/POS
maneuverings/NNS
on/IN
the/DT
deficit-cutting/JJ
bill/NN
and/CC
the/DT
capital-gains/NNS
issue/NN
,/,
there/EX
were/VBD
signs/NNS
that/IN
Senate/NNP
Republicans/NNP
and/CC
the/DT
administration/NN
were/VBD
at/IN
odds/NNS
./.
At/IN
the/DT
very/JJ
moment/NN
that/IN
Senate/NNP
Republicans/NNPS
were/VBD
negotiating/VBG
a/DT
deal/NN
to/TO
exclude/VB
capital/NN
gains/NNS
from/IN
the/DT
deficit-reduction/NN
legislation/NN
,/,
White/NNP
House/NNP
spokesman/NN
Marlin/NNP
Fitzwater/NNP
told/VBD
reporters/NNS
that/IN
it/PRP
was/VBD
the/DT
president/NN
's/POS
policy/NN
to/TO
include/VB
it/PRP
./.
When/WRB
an/DT
agreement/NN
was/VBD
reached/VBN
to/TO
strip/VB
capital/NN
gains/NNS
from/IN
the/DT
legislation/NN
,/,
Oregon/NNP
Sen./NNP
Bob/NNP
Packwood/NNP
,/,
the/DT
ranking/JJ
GOP/NNP
member/NN
of/IN
the/DT
tax-writing/JJ
Senate/NNP
Finance/NNP
Committee/NNP
,/,
hailed/VBD
it/PRP
./.
Asked/VBN
if/IN
the/DT
administration/NN
agreed/VBD
,/,
he/PRP
curtly/RB
replied/VBD
:/:
``/``
The/DT
adminstration/NN
will/MD
have/VB
to/TO
speak/VB
for/IN
itself/PRP
./.
''/''
Friday/NNP
's/POS
market/NN
tumble/NN
could/MD
spur/VB
action/NN
on/IN
reconciling/VBG
the/DT
House/NNP
and/CC
Senate/NNP
versions/NNS
of/IN
the/DT
deficit-reduction/NN
measure/NN
,/,
a/DT
process/NN
that/WDT
is/VBZ
n't/RB
expected/VBN
to/TO
begin/VB
until/IN
tomorrow/NN
at/IN
the/DT
soonest/JJS
./.
Senate/NNP
Republicans/NNPS
expressed/VBD
the/DT
hope/NN
that/IN
the/DT
House/NN
would/MD
follow/VB
the/DT
lead/NN
of/IN
the/DT
Senate/NNP
,/,
which/WDT
on/IN
Friday/NNP
agreed/VBD
to/TO
drop/VB
a/DT
variety/NN
of/IN
spending/NN
measures/NNS
and/CC
tax/NN
breaks/NNS
that/WDT
would/MD
have/VB
increased/VBN
the/DT
fiscal/JJ
1990/CD
deficit/NN
./.
``/``
The/DT
market/NN
needs/VBZ
a/DT
strong/JJ
signal/NN
that/IN
we/PRP
're/VBP
serious/JJ
about/IN
deficit/NN
reduction/NN
,/,
and/CC
the/DT
best/JJS
way/NN
to/TO
do/VB
that/DT
is/VBZ
for/IN
the/DT
House/NNP
of/IN
Representatives/NNPS
to/TO
strip/VB
their/PRP$
bill/NN
''/''
of/IN
similar/JJ
provisions/NNS
,/,
Sen./NNP
Warren/NNP
Rudman/NNP
R./NNP
,/,
N.H/NNP
./.
)/)
./.
said/VBD
yesterday/NN
./.
The/DT
White/NNP
House/NNP
Office/NNP
of/IN
Management/NNP
and/CC
Budget/NNP
,/,
whose/WP$
calculations/NNS
determine/VBP
whether/IN
the/DT
Gramm-Rudman/NNP
targets/NNS
are/VBP
met/VBN
,/,
estimated/VBD
that/IN
the/DT
House-passed/JJ
deficit-reduction/NN
measure/NN
would/MD
cut/VB
the/DT
fiscal/JJ
1990/CD
shortfall/NN
by/IN
$/$
6.2/CD
billion/CD
,/,
almost/RB
half/DT
of/IN
the/DT
Congressional/NNP
Budget/NNP
Office/NNP
's/POS
estimate/NN
of/IN
$/$
11.0/CD
billion/CD
./.
Rep./NNP
Panetta/NNP
said/VBD
that/IN
OMB/NNP
's/POS
figure/NN
would/MD
still/RB
be/VB
enough/JJ
to/TO
avoid/VB
permanent/JJ
across-the-board/NN
cuts/VBZ
,/,
but/CC
added/VBD
:/:
``/``
We/PRP
're/VBP
getting/VBG
very/RB
close/RB
to/TO
the/DT
margins/NNS
here/RB
./.
''/''
No/DT
one/NN
in/IN
Washington/NNP
was/VBD
willing/JJ
to/TO
take/VB
the/DT
blame/NN
for/IN
provoking/VBG
Friday/NNP
's/POS
drop/NN
in/IN
the/DT
stock/NN
market/NN
./.
But/CC
some/DT
players/NNS
were/VBD
quick/JJ
to/TO
seize/VB
the/DT
moment/NN
./.
Before/IN
the/DT
sun/NN
had/VBD
set/VBN
on/IN
Friday/NNP
,/,
Richard/NNP
Rahn/NNP
,/,
the/DT
supply-side/JJ
chief/JJ
economist/NN
of/IN
the/DT
U.S./NNP
Chamber/NNP
of/IN
Commerce/NNP
,/,
issued/VBD
a/DT
statement/NN
attributing/VBG
the/DT
drop/NN
in/IN
stock/NN
prices/NNS
to/TO
the/DT
Senate/NNP
decision/NN
to/TO
postpone/VB
action/NN
on/IN
capital/NN
gains/NNS
./.
``/``
Investors/NNS
,/,
who/WP
had/VBD
been/VBN
holding/VBG
assets/NNS
in/IN
anticipation/NN
of/IN
a/DT
more/RBR
favorable/JJ
time/NN
to/TO
sell/VB
,/,
were/VBD
spooked/VBN
,/,
''/''
he/PRP
said/VBD
./.
``/``
There/EX
have/VBP
been/VBN
many/JJ
preposterous/JJ
reasons/NNS
advanced/VBN
to/TO
support/VB
a/DT
capital-gains/NNS
tax/NN
cut/NN
,/,
''/''
Sen./NNP
Mitchell/NNP
said/VBD
during/IN
his/PRP$
television/NN
appearance/NN
,/,
``/``
but/CC
I/PRP
suggest/VBP
that/DT
is/VBZ
perhaps/RB
more/RBR|JJR
than/IN
any/DT
of/IN
the/DT
others/NNS
./.
''/''
The/DT
following/JJ
U.S./NNP
Treasury/NNP
,/,
corporate/JJ
and/CC
municipal/JJ
offerings/NNS
are/VBP
tentatively/RB
scheduled/VBN
for/IN
sale/NN
this/DT
week/NN
,/,
according/VBG
to/TO
Dow/NNP
Jones/NNP
Capital/NNP
Markets/NNP
Report/NNP
:/:
$/$
15.2/CD
billion/CD
of/IN
three-month/JJ
and/CC
six-month/JJ
bills/NNS
./.
Two-year/JJ
notes/NNS
,/,
refinancing/VBG
about/RB
$/$
9.6/CD
billion/CD
in/IN
maturing/VBG
debt/NN
./.
$/$
9.75/CD
billion/CD
of/IN
52-week/JJ
bills/NNS
./.
Connecticut/NNP
Light/NNP
&/CC
Power/NNP
Co./NNP
--/:
Three/CD
million/CD
shares/NNS
of/IN
$/$
25/CD
preferred/JJ
,/,
via/IN
competitive/JJ
bidding/NN
./.
B&H/NNP
Crude/NNP
Carriers/NNP
Ltd./NNP
--/:
Four/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
Salomon/NNP
Brothers/NNP
Inc/NNP
./.
Baldwin/NNP
Technology/NNP
Co./NNP
--/:
2.6/CD
million/CD
Class/NNP
A/NNP
shares/NNS
,/,
via/IN
Smith/NNP
Barney/NNP
Harris/NNP
Upham/NNP
&/CC
Co/NNP
./.
Blockbuster/NNP
Entertainment/NNP
Corp./NNP
--/:
$/$
250/CD
million/CD
face/NN
amount/NN
Liquid/NNP
Yield/NNP
Option/NNP
Notes/NNP
,/,
via/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
./.
Chase/NNP
Manhattan/NNP
Corp./NNP
--/:
14/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
./.
Comcast/NNP
Corp./NNP
--/:
$/$
150/CD
million/CD
convertible/JJ
debentures/NNS
,/,
via/IN
Merrill/NNP
Lynch/NNP
./.
CSS/NNP
Industries/NNP
--/:
1.3/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
Merrill/NNP
Lynch/NNP
./.
Eastern/NNP
Utilities/NNP
Associates/NNP
--/:
1.5/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
PaineWebber/NNP
Inc/NNP
./.
Employee/NNP
Benefit/NNP
Plans/NNP
Inc./NNP
--/:
Two/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
Dean/NNP
Witter/NNP
Capital/NNP
Markets/NNP
./.
Exabyte/NNP
Corp./NNP
--/:
2,850,000/CD
common/JJ
shares/NNS
,/,
via/IN
Goldman/NNP
Sachs/NNP
./.
Knowledgeware/NNP
Inc./NNP
--/:
2.4/CD
million/CD
common/JJ
shares/NNS
,/,
via/IN
Montgomery/NNP
Securities/NNP
./.
Oregon/NNP
--/:
$/$
100/CD
million/CD
of/IN
general/JJ
obligation/NN
veterans/NNS
'/POS
tax/NN
notes/NNS
,/,
Series/NNP
1989/CD
,/,
via/IN
competitive/JJ
bid/NN
./.
Washington/NNP
,/,
D.C./NNP
--/:
$/$
200/CD
million/CD
of/IN
1990/CD
general/JJ
obligation/NN
tax/NN
revenue/NN
notes/NNS
Series/NNP
1990A/NNP
competitive/JJ
bid/NN
./.
Virginia/NNP
Public/NNP
School/NNP
Authority/NNP
--/:
$/$
55,730,000/CD
of/IN
school/NN
financing/NN
bonds/NNS
,/,
1989/CD
Series/NNP
B/NNP
1987/CD
resolution/NN
competitive/JJ
bid/NN
./.
Austin/NNP
,/,
Texas/NNP
--/:
$/$
68,230,000/CD
of/IN
various/JJ
bonds/NNS
,/,
including/VBG
$/$
32/CD
million/CD
hotel/NN
occupancy/NN
tax/NN
revenue/NN
bonds/NNS
,/,
Series/NNP
1989A/NNP
,/,
and/CC
$/$
36.23/CD
million/CD
convention/NN
center/NN
revenue/NN
bonds/NNS
,/,
Series/NNP
1989B/NNP
,/,
via/IN
a/DT
Morgan/NNP
Stanley/NNP
&/CC
Co./NNP
group/NN
./.
California/NNP
Health/NNP
Facilities/NNP
Financing/NNP
Authority/NNP
--/:
$/$
144.5/CD
million/CD
of/IN
Kaiser/NNP
Permanente/NNP
revenue/NN
bonds/NNS
,/,
via/IN
a/DT
PaineWebber/NNP
group/NN
./.
Connecticut/NNP
--/:
$/$
100/CD
million/CD
of/IN
general/JJ
obligation/NN
capital/NN
appreciation/NN
bonds/NNS
,/,
College/NNP
Savings/NNP
Plan/NNP
,/,
1989/CD
Series/NNP
B/NNP
,/,
via/IN
a/DT
Prudential-Bache/NNP
Capital/NNP
Funding/NNP
group/NN
./.
Pennsylvania/NNP
Higher/NNP
Education/NNP
Facilities/NNP
Authority/NNP
--/:
$/$
117/CD
million/CD
of/IN
revenue/NN
bonds/NNS
for/IN
Hahnemann/NNP
University/NNP
,/,
Series/NNP
1989/CD
,/,
via/IN
a/DT
Merrill/NNP
Lynch/NNP
group/NN
./.
Tennessee/NNP
Valley/NNP
Authority/NNP
--/:
Three/CD
billion/CD
of/IN
power/NN
bonds/NNS
,/,
via/IN
First/NNP
Boston/NNP
Corp/NNP
./.
University/NNP
of/IN
Medicine/NNP
And/CC
Dentistry/NNP
of/IN
New/NNP
Jersey/NNP
--/:
$/$
55/CD
million/CD
of/IN
Series/NNP
C/NNP
bonds/NNS
,/,
via/IN
a/DT
Prudential-Bache/NNP
group/NN
./.
West/NNP
Virginia/NNP
Parkways/NNP
,/,
Economic/NNP
Development/NNP
And/CC
Tourism/NNP
Authority/NNP
--/:
$/$
143/CD
million/CD
of/IN
parkway/NN
revenue/NN
bonds/NNS
,/,
Series/NN
1989/CD
,/,
via/IN
a/DT
PaineWebber/NNP
group/NN
./.
San/NNP
Antonio/NNP
,/,
Texas/NNP
--/:
$/$
640/CD
million/CD
of/IN
gas/NN
and/CC
electric/JJ
revenue/NN
refunding/NN
bonds/NNS
,/,
via/IN
a/DT
First/NNP
Boston/NNP
group/NN
./.
South/NNP
Dakota/NNP
Health/NNP
&/CC
Education/NNP
Facility/NNP
Authority/NNP
--/:
$/$
51.1/CD
million/CD
of/IN
Rapid/NNP
City/NNP
Regional/NNP
Hospital/NNP
bonds/NNS
,/,
via/IN
a/DT
Dougherty/NNP
,/,
Dawkins/NNP
,/,
Strand/NNP
&/CC
Yost/NNP
Inc./NNP
group/NN
./.
Small/JJ
investors/NNS
matched/VBD
their/PRP$
big/JJ
institutional/JJ
brethren/NNS
in/IN
anxiety/NN
over/IN
the/DT
weekend/NN
,/,
but/CC
most/JJS
seemed/VBD
to/TO
be/VB
taking/VBG
a/DT
philosophical/JJ
approach/NN
and/CC
said/VBD
they/PRP
were/VBD
resigned/VBN
to/TO
riding/VBG
out/RP
the/DT
latest/JJS
storm/NN
in/IN
the/DT
stock/NN
market/NN
./.
``/``
I/PRP
'm/VBP
not/RB
losing/VBG
faith/NN
in/IN
the/DT
market/NN
,/,
''/''
said/VBD
Boston/NNP
lawyer/NN
Christopher/NNP
Sullivan/NNP
as/IN
he/PRP
watched/VBD
the/DT
market/NN
plunge/NN
on/IN
a/DT
big/JJ
screen/NN
in/IN
front/NN
of/IN
a/DT
brokerage/NN
firm/NN
./.
But/CC
he/PRP
's/VBZ
not/RB
so/RB
sure/JJ
about/IN
everyone/NN
else/RB
./.
``/``
I/PRP
think/VBP
on/IN
Monday/NNP
the/DT
small/JJ
investors/NNS
Mr./NNP
Sullivan/NNP
,/,
whose/WP$
investments/NNS
include/VBP
AMR/NNP
Corp./NNP
's/POS
American/NNP
Airlines/NNP
unit/NN
and/CC
several/JJ
mutual/JJ
funds/NNS
./.
``/``
And/CC
I/PRP
think/VBP
institutions/NNS
are/VBP
going/VBG
to/TO
come/VB
in/IN
and/CC
buy/VB
.../:
I/PRP
'm/VBP
going/VBG
to/TO
hold/VB
on/RP
./.
If/IN
I/PRP
sell/VBP
now/RB
,/,
I/PRP
'll/MD
take/VB
a/DT
big/JJ
loss/NN
./.
''/''
Some/DT
evinced/VBD
an/DT
optimism/NN
that/WDT
had/VBD
been/VBN
rewarded/VBN
when/WRB
they/PRP
did/VBD
n't/RB
flee/VB
the/DT
market/NN
in/IN
1987/CD
./.
``/``
Oh/UH
,/,
I/PRP
bet/VBP
it/PRP
'll/MD
be/VB
up/RB
50/CD
points/NNS
on/IN
Monday/NNP
,/,
''/''
said/VBD
Lucy/NNP
Crump/NNP
,/,
a/DT
78-year-old/JJ
retired/JJ
housewife/NN
in/IN
Lexington/NNP
,/,
Ky/NNP
./.
Mrs./NNP
Crump/NNP
said/VBD
her/PRP$
Ashwood/NNP
Investment/NNP
Club/NNP
's/POS
portfolio/NN
lost/VBD
about/RB
one-third/NN
of/IN
its/PRP$
value/NN
following/VBG
the/DT
Black/NNP
Monday/NNP
crash/NN
,/,
``/``
but/CC
no/DT
one/NN
got/VBD
discouraged/VBN
,/,
and/CC
we/PRP
gained/VBD
that/DT
back/RP
--/:
and/CC
more/JJR
./.
''/''
At/IN
the/DT
annual/JJ
congress/NN
of/IN
the/DT
National/NNP
Association/NNP
of/IN
Investors/NNP
Corp./NNP
at/IN
the/DT
Hyatt/NNP
Regency/NNP
hotel/NN
in/IN
Minneapolis/NNS
,/,
the/DT
scene/NN
was/VBD
calm/JJ
./.
Some/RB
500/CD
investors/NNS
representing/VBG
investor/NN
clubs/NNS
from/IN
around/IN
the/DT
U.S./NNP
were/VBD
attending/VBG
when/WRB
the/DT
market/NN
started/VBD
to/TO
slide/VB
Friday/NNP
./.
But/CC
Robert/NNP
Showalter/NNP
,/,
an/DT
official/NN
of/IN
the/DT
association/NN
,/,
said/VBD
no/DT
special/JJ
bulletins/NNS
or/CC
emergency/NN
meetings/NNS
of/IN
the/DT
investors/NNS
'/POS
clubs/NNS
are/VBP
planned/VBN
./.
In/IN
fact/NN
,/,
some/DT
of/IN
the/DT
association/NN
's/POS
members/NNS
--/:
long-term/JJ
,/,
buy-and-hold/JJ
investors/NNS
--/:
welcomed/VBD
the/DT
drop/NN
in/IN
prices/NNS
./.
``/``
We/PRP
hope/VBP
to/TO
take/VB
advantage/NN
of/IN
it/PRP
,/,
''/''
said/VBD
John/NNP
Snyder/NNP
,/,
a/DT
member/NN
of/IN
a/DT
Los/NNP
Angeles/NNP
investors/NNS
'/POS
club/NN
./.
He/PRP
has/VBZ
four/CD
stocks/NNS
in/IN
mind/NN
to/TO
buy/VB
if/IN
the/DT
prices/NNS
drop/VBP
to/TO
the/DT
level/NN
he/PRP
wants/VBZ
./.
Not/RB
everyone/NN
is/VBZ
reacting/VBG
so/RB
calmly/RB
,/,
however/RB
,/,
and/CC
many/JJ
wonder/VBP
about/IN
the/DT
long-term/JJ
implications/NNS
of/IN
what/WP
is/VBZ
widely/RB
viewed/VBN
as/IN
the/DT
cause/NN
of/IN
Friday/NNP
's/POS
slide/NN
,/,
reluctance/NN
by/IN
banks/NNS
to/TO
provide/VB
financing/NN
for/IN
a/DT
buy-out/NN
of/IN
UAL/NNP
Corp./NNP
,/,
parent/NN
of/IN
United/NNP
Airlines/NNP
./.
Marc/NNP
Perkins/NNP
,/,
a/DT
Tampa/NNP
,/,
Fla./NNP
,/,
investment/NN
banker/NN
,/,
said/VBD
the/DT
market/NN
drop/NN
is/VBZ
one/CD
of/IN
``/``
a/DT
tremendous/JJ
number/NN
of/IN
signs/NNS
that/IN
the/DT
leveraged/JJ
take-out/NN
era/NN
is/VBZ
ending/VBG
./.
There/EX
's/VBZ
no/DT
question/NN
that/IN
there/EX
's/VBZ
a/DT
general/JJ
distaste/NN
for/IN
leverage/NN
among/IN
lenders/NNS
./.
''/''
Mr./NNP
Perkins/NNP
believes/VBZ
,/,
however/RB
,/,
that/IN
the/DT
market/NN
could/MD
be/VB
stabilized/VBN
if/IN
California/NNP
investor/NN
Marvin/NNP
Davis/NNP
steps/VBZ
back/RB
in/IN
to/TO
the/DT
United/NNP
bidding/NN
with/IN
an/DT
offer/NN
of/IN
$/$
275/CD
a/DT
share/NN
./.
Sara/NNP
Albert/NNP
,/,
a/DT
34-year-old/JJ
Dallas/NNP
law/NN
student/NN
,/,
says/VBZ
she/PRP
's/VBZ
generally/RB
skittish/JJ
about/IN
the/DT
stock/NN
market/NN
and/CC
the/DT
takeover/NN
activity/NN
that/WDT
seems/VBZ
to/TO
fuel/VB
it/PRP
./.
``/``
I/PRP
have/VBP
this/DT
feeling/NN
that/IN
it/PRP
's/VBZ
built/VBN
on/IN
sand/NN
,/,
''/''
she/PRP
says/VBZ
,/,
that/IN
the/DT
market/NN
rises/VBZ
``/``
but/CC
there/EX
's/VBZ
no/DT
foundation/NN
to/TO
it/PRP
./.
''/''
She/PRP
and/CC
her/PRP$
husband/NN
pulled/VBD
most/JJS
of/IN
their/PRP$
investments/NNS
out/IN
of/IN
the/DT
market/NN
after/IN
the/DT
1987/CD
crash/NN
,/,
although/IN
she/PRP
still/RB
owns/VBZ
some/DT
Texaco/NNP
stock/NN
./.
Partly/RB
because/IN
of/IN
concern/NN
about/IN
the/DT
economy/NN
and/CC
partly/RB
because/IN
she/PRP
recently/RB
quit/VBD
her/PRP$
job/NN
as/IN
a/DT
legal/JJ
assistant/NN
to/TO
go/VB
to/TO
school/NN
,/,
``/``
I/PRP
think/VBP
at/IN
this/DT
point/NN
we/PRP
want/VBP
to/TO
be/VB
a/DT
lot/NN
more/RBR
liquid/JJ
./.
''/''
Others/NNS
wonder/VBP
how/WRB
many/JJ
more/JJR
of/IN
these/DT
shocks/NNS
the/DT
small/JJ
investor/NN
can/MD
stand/VB
./.
``/``
We/PRP
all/DT
assumed/VBD
October/NNP
'87/CD
was/VBD
a/DT
one-time/JJ
shot/NN
,/,
''/''
said/VBD
San/NNP
Francisco/NNP
attorney/NN
David/NNP
Greenberg/NNP
./.
``/``
We/PRP
told/VBD
the/DT
little/JJ
guy/NN
it/PRP
could/MD
only/RB
happen/VB
once/RB
in/IN
a/DT
lifetime/NN
,/,
come/VBN
on/RP
back/RB
./.
Now/RB
it/PRP
's/VBZ
happening/VBG
again/RB
./.
''/''
Mr./NNP
Greenberg/NNP
got/VBD
out/RP
just/RB
before/IN
the/DT
1987/CD
crash/NN
and/CC
,/,
to/TO
his/PRP$
regret/NN
,/,
never/RB
went/VBD
back/RB
even/RB
as/IN
the/DT
market/NN
soared/VBD
./.
This/DT
time/NN
he/PRP
's/VBZ
ready/JJ
to/TO
buy/VB
in/RP
``/``
when/WRB
the/DT
panic/NN
wears/VBZ
off/RP
./.
''/''
Still/RB
,/,
he/PRP
adds/VBZ
:/:
``/``
We/PRP
ca/MD
n't/RB
have/VB
this/DT
kind/NN
of/IN
thing/NN
happen/VB
very/RB
often/RB
./.
When/WRB
the/DT
little/JJ
guy/NN
gets/VBZ
frightened/JJ
,/,
the/DT
big/JJ
guys/NNS
hurt/VBP
badly/RB
./.
Merrill/NNP
Lynch/NNP
ca/MD
n't/RB
survive/VB
without/IN
the/DT
little/JJ
guy/NN
./.
''/''
Small/JJ
investors/NNS
have/VBP
tiptoed/VBN
back/RB
into/IN
the/DT
market/NN
following/VBG
Black/NNP
Monday/NNP
,/,
but/CC
mostly/RB
through/IN
mutual/JJ
funds/NNS
./.
Discount/JJ
brokerage/NN
customers/NNS
``/``
have/VBP
been/VBN
in/IN
the/DT
market/NN
somewhat/RB
but/CC
not/RB
whole/JJ
hog/NN
like/IN
they/PRP
were/VBD
two/CD
years/NNS
ago/RB
,/,
''/''
says/VBZ
Leslie/NNP
Quick/NNP
Jr./NNP
,/,
chairman/NN
of/IN
the/DT
Quick/NNP
&/CC
Reilly/NNP
discount/JJ
brokerage/NN
firm/NN
./.
Hugo/NNP
Quackenbush/NNP
,/,
senior/JJ
vice/NN
president/NN
at/IN
Charles/NNP
Scwhab/NNP
Corp./NNP
,/,
says/VBZ
Schwab/NNP
customers/NNS
``/``
have/VBP
been/VBN
neutral/JJ
to/TO
cautious/JJ
recently/RB
about/IN
stocks/NNS
./.
''/''
Individual/JJ
investors/NNS
are/VBP
still/RB
angry/JJ
about/IN
program/NN
trading/NN
,/,
Mr./NNP
Quackenbush/NNP
says/VBZ
./.
Avner/NNP
Arbel/NNP
,/,
a/DT
Cornell/NNP
University/NNP
finance/NN
professor/NN
,/,
says/VBZ
government/NN
regulators/NNS
will/MD
have/VB
to/TO
more/RBR
closely/RB
control/VB
program/NN
trading/NN
to/TO
``/``
win/VB
back/RP
the/DT
confidence/NN
of/IN
the/DT
small/JJ
investor/NN
./.
''/''
But/CC
it/PRP
's/VBZ
not/RB
only/RB
the/DT
stock/NN
market/NN
that/WDT
has/VBZ
some/DT
small/JJ
investors/NNS
worried/JJ
./.
Alan/NNP
Helfman/NNP
,/,
general/JJ
sales/NNS
manager/NN
of/IN
a/DT
Chrysler/NNP
dealership/NN
in/IN
Houston/NNP
,/,
said/VBD
he/PRP
and/CC
his/PRP$
mother/NN
have/VBP
some/DT
joint/JJ
stock/NN
investments/NNS
,/,
but/CC
the/DT
overall/JJ
economy/NN
is/VBZ
his/PRP$
chief/JJ
worry/NN
./.
``/``
These/DT
high/JJ
rollers/NNS
took/VBD
a/DT
big/JJ
bath/NN
today/NN
,/,
''/''
he/PRP
said/VBD
in/IN
his/PRP$
showroom/NN
,/,
which/WDT
is/VBZ
within/IN
a/DT
few/JJ
miles/NNS
of/IN
the/DT
multi-million/JJ
dollar/NN
homes/NNS
of/IN
some/DT
of/IN
Houston/NNP
's/POS
richest/JJS
citizens/NNS
./.
``/``
And/CC
I/PRP
can/MD
tell/VB
you/PRP
that/IN
a/DT
high/JJ
roller/NN
is/VBZ
n't/RB
going/VBG
to/TO
come/VB
in/IN
tomorrow/NN
and/CC
buy/VB
a/DT
Chrysler/NNP
TC/NNP
by/IN
Maserati/NNP
./.
''/''
And/CC
,/,
finally/RB
,/,
there/EX
were/VBD
the/DT
gloaters/NNS
./.
``/``
I/PRP
got/VBD
out/RP
in/IN
1987/CD
./.
Everything/NN
,/,
''/''
said/VBD
Pascal/NNP
Antori/NNP
,/,
an/DT
Akron/NNP
,/,
Ohio/NNP
,/,
plumbing/NN
contractor/NN
who/WP
was/VBD
visiting/VBG
Chicago/NNP
and/CC
stopped/VBD
by/IN
Fidelity/NNP
Investments/NNP
'/POS
LaSalle/NNP
Street/NNP
office/NN
./.
``/``
I/PRP
just/RB
stopped/VBD
by/RP
to/TO
see/VB
how/WRB
much/JJ
I/PRP
would/MD
have/VB
lost/VBN
./.
''/''
Would/MD
Mr./NNP
Antori/NNP
ever/RB
get/VB
back/RB
in/RP
?/.
``/``
Are/VBP
you/PRP
kidding/VBG
!/.
When/WRB
it/PRP
comes/VBZ
to/TO
money/NN
:/:
Once/RB
bitten/VBN
,/,
2,000/CD
times/NNS
shy/JJ
./.
''/''
The/DT
crowded/JJ
field/NN
for/IN
notebook-sized/JJ
computers/NNS
is/VBZ
about/RB
to/TO
become/VB
a/DT
lot/NN
more/RBR
crowded/JJ
./.
Compaq/NNP
Computer/NNP
Corp./NNP
's/POS
long-awaited/JJ
entry/NN
today/NN
into/IN
the/DT
notebook/NN
field/NN
is/VBZ
expected/VBN
to/TO
put/VB
immediate/JJ
heat/NN
on/IN
others/NNS
in/IN
the/DT
market/NN
,/,
especially/RB
Zenith/NNP
Electronics/NNP
Corp./NNP
,/,
the/DT
current/JJ
market/NN
leader/NN
,/,
and/CC
on/IN
a/DT
swarm/NN
of/IN
promising/JJ
start-ups/NNS
./.
Compaq/NNP
's/POS
series/NN
of/IN
notebooks/NNS
extends/VBZ
a/DT
trend/NN
toward/IN
downsizing/NN
in/IN
the/DT
personal/JJ
computer/NN
market/NN
./.
One/CD
manufacturer/NN
already/RB
has/VBZ
produced/VBN
a/DT
clipboard-sized/JJ
computer/NN
called/VBD
a/DT
notepad/NN
,/,
and/CC
two/CD
others/NNS
have/VBP
introduced/VBN
even/RB
smaller/JJR
``/``
palmtops/NNS
./.
''/''
But/CC
those/DT
machines/NNS
are/VBP
still/RB
considered/VBN
novelties/NNS
,/,
with/IN
keyboards/NNS
only/RB
a/DT
munchkin/NN
could/MD
love/VB
and/CC
screens/VBZ
to/TO
match/VB
./.
Compaq/NNP
's/POS
notebooks/NNS
,/,
by/IN
contrast/NN
,/,
may/MD
be/VB
the/DT
first/JJ
in/IN
their/PRP$
weight/NN
class/NN
not/RB
to/TO
skimp/VB
on/IN
features/NNS
found/VBN
in/IN
much/RB
bigger/JJR
machines/NNS
./.
Analysts/NNS
say/VBP
they/PRP
're/VBP
faster/JJR
and/CC
carry/VBP
more/JJR
memory/NN
than/IN
anything/NN
else/RB
of/IN
their/PRP$
size/NN
on/IN
the/DT
market/NN
--/:
and/CC
they/PRP
're/VBP
priced/VBN
aggressively/RB
at/IN
$/$
2,400/CD
to/TO
$/$
5,000/CD
./.
All/DT
of/IN
this/DT
comes/VBZ
in/IN
a/DT
machine/NN
that/WDT
weighs/VBZ
only/RB
six/CD
pounds/NNS
and/CC
fits/VBZ
comfortably/RB
into/IN
most/JJS
briefcases/NNS
./.
In/IN
recent/JJ
months/NNS
,/,
Compaq/NNP
's/POS
competition/NN
,/,
including/VBG
Zenith/NNP
,/,
Toshiba/NNP
Corp./NNP
,/,
Tandy/NNP
Corp./NNP
and/CC
NEC/NNP
Corp./NNP
all/DT
have/VBP
introduced/VBN
portables/NNS
that/WDT
weigh/VBP
approximately/RB
the/DT
same/JJ
and/CC
that/WDT
are/VBP
called/VBN
notebooks/NNS
--/:
perhaps/RB
misleadingly/RB
./.
One/CD
analyst/NN
,/,
noting/VBG
that/IN
most/JJS
such/JJ
machines/NNS
are/VBP
about/RB
two/CD
inches/NNS
thick/JJ
,/,
takes/VBZ
exception/NN
to/TO
the/DT
name/NN
./.
``/``
This/DT
is/VBZ
n't/RB
quite/RB
a/DT
notebook/NN
--/:
I/PRP
call/VBP
it/PRP
a/DT
phonebook/NN
,/,
''/''
he/PRP
says/VBZ
./.
That/DT
ca/MD
n't/RB
be/VB
said/VBD
of/IN
the/DT
$/$
2,400/CD
notepad/NN
computer/NN
introduced/VBN
a/DT
few/JJ
weeks/NNS
ago/RB
by/IN
GRiD/NNP
Systems/NNP
Corp./NNP
,/,
a/DT
unit/NN
of/IN
Tandy/NNP
./.
Instead/RB
of/IN
a/DT
keyboard/NN
,/,
it/PRP
features/VBZ
a/DT
writing/NN
surface/NN
,/,
an/DT
electronic/JJ
pen/NN
and/CC
the/DT
ability/NN
to/TO
``/``
read/VB
''/''
block/JJ
printing/NN
./.
At/IN
4/CD
1\/2/CD
pounds/NNS
,/,
it/PRP
may/MD
be/VB
too/RB
ambitiously/RB
named/VBN
,/,
but/CC
it/PRP
nevertheless/RB
opens/VBZ
up/RP
the/DT
kind/NN
of/IN
marketing/NN
possibilities/NNS
that/WDT
make/VBP
analysts/NNS
froth/VB
./.
Palmtops/NNS
are/VBP
n't/RB
far/RB
behind/RB
./.
Atari/NNP
Corp./NNP
's/POS
Portfolio/NNP
,/,
introduced/VBN
in/IN
Europe/NNP
two/CD
months/NNS
ago/RB
and/CC
in/IN
the/DT
U.S./NNP
in/IN
early/JJ
September/NNP
,/,
weighs/VBZ
less/RBR
than/IN
a/DT
pound/NN
,/,
costs/VBZ
a/DT
mere/JJ
$/$
400/CD
and/CC
runs/VBZ
on/IN
three/CD
AA/NN
batteries/NNS
,/,
yet/CC
has/VBZ
the/DT
power/NN
to/TO
run/VB
some/DT
spreadsheets/NNS
and/CC
word/NN
processing/NN
programs/NNS
./.
Some/DT
critics/NNS
,/,
however/RB
,/,
say/VB
its/PRP$
ability/NN
to/TO
run/VB
commonplace/JJ
programs/NNS
is/VBZ
restricted/VBN
by/IN
a/DT
limited/JJ
memory/NN
./.
Poquet/NNP
Computer/NNP
Corp./NNP
,/,
meanwhile/RB
,/,
has/VBZ
introduced/VBN
a/DT
much/RB
more/RBR
sophisticated/JJ
palmtop/NN
that/WDT
can/MD
run/VB
Lotus/NNP
1-2-3/NNP
and/CC
other/JJ
sophisticated/JJ
software/NN
programs/NNS
,/,
but/CC
costs/VBZ
five/CD
times/NNS
as/RB
much/JJ
./.
At/IN
stake/NN
is/VBZ
what/WP
Mike/NNP
Swavely/NNP
,/,
Compaq/NNP
's/POS
president/NN
of/IN
North/NNP
America/NNP
operations/NNS
,/,
calls/VBZ
``/``
the/DT
Holy/NNP
Grail/NNP
of/IN
the/DT
computer/NN
industry/NN
''/''
--/:
the/DT
search/NN
for/IN
``/``
a/DT
real/JJ
computer/NN
in/IN
a/DT
package/NN
so/RB
small/JJ
you/PRP
can/MD
take/VB
it/PRP
everywhere/RB
./.
''/''
The/DT
market/NN
is/VBZ
so/RB
new/JJ
,/,
nobody/NN
knows/VBZ
yet/RB
how/WRB
big/JJ
it/PRP
can/MD
be/VB
./.
``/``
I/PRP
've/VBP
had/VBD
a/DT
lot/NN
of/IN
people/NNS
trying/VBG
to/TO
sell/VB
me/PRP
services/NNS
to/TO
find/VB
out/RP
how/WRB
big/JJ
it/PRP
is/VBZ
,/,
''/''
says/VBZ
Tom/NNP
Humphries/NNP
,/,
director/NN
of/IN
marketing/NN
for/IN
GRiD/NNP
./.
``/``
Whether/IN
it/PRP
's/VBZ
$/$
5/CD
billion/CD
or/CC
$/$
3.5/CD
billion/CD
,/,
it/PRP
does/VBZ
n't/RB
matter/NN
./.
It/PRP
's/VBZ
huge/JJ
./.
''/''
Consider/VB
the/DT
growth/NN
of/IN
portables/NNS
,/,
which/WDT
now/RB
comprise/VBP
12/CD
%/NN
of/IN
all/DT
personal/JJ
computer/NN
sales/NNS
./.
Laptops/NNS
--/:
generally/RB
anything/NN
under/IN
15/CD
pounds/NNS
--/:
have/VBP
become/VBN
the/DT
fastest-growing/JJ
personal/JJ
computer/NN
segment/NN
,/,
with/IN
sales/NNS
doubling/VBG
this/DT
year/NN
./.
Responding/VBG
to/TO
that/DT
demand/NN
,/,
however/RB
,/,
has/VBZ
led/VBN
to/TO
a/DT
variety/NN
of/IN
compromises/NNS
./.
Making/VBG
computers/NNS
smaller/JJR
often/RB
means/VBZ
sacrificing/VBG
memory/NN
./.
It/PRP
also/RB
has/VBZ
precluded/VBN
use/NN
of/IN
the/DT
faster/JJR
,/,
more/RBR
powerful/JJ
microprocessors/NNS
found/VBN
in/IN
increasing/VBG
numbers/NNS
of/IN
desktop/JJ
machines/NNS
./.
Size/NN
and/CC
weight/NN
considerations/NNS
also/RB
have/VBP
limited/VBN
screen/NN
displays/NNS
./.
The/DT
competitive/JJ
sniping/NN
can/MD
get/VB
pretty/RB
petty/JJ
at/IN
times/NNS
./.
A/DT
Poquet/NNP
spokesman/NN
,/,
for/IN
example/NN
,/,
criticizes/VBZ
the/DT
Atari/NNP
Portfolio/NNP
because/IN
it/PRP
requires/VBZ
three/CD
batteries/NNS
while/IN
the/DT
Poquet/NNP
needs/VBZ
only/RB
two/CD
./.
Both/DT
palmtops/NNS
are/VBP
dismissed/VBN
by/IN
notebook/NN
makers/NNS
,/,
who/WP
argue/VBP
that/IN
they/PRP
're/VBP
too/RB
small/JJ
--/:
a/DT
problem/NN
Poquet/NNP
also/RB
encountered/VBD
in/IN
focus/NN
groups/NNS
,/,
admits/VBZ
Gerry/NNP
Purdy/NNP
,/,
director/NN
of/IN
marketing/NN
./.
Poquet/NNP
,/,
trying/VBG
to/TO
avoid/VB
the/DT
``/``
gadget/NN
''/''
label/NN
,/,
responded/VBD
with/IN
the/DT
tag/NN
line/NN
,/,
``/``
The/DT
Poquet/NNP
PC/NNP
--/:
a/DT
Very/NNP
Big/NNP
Computer/NNP
./.
''/''
Despite/IN
the/DT
sniping/NN
,/,
few/JJ
question/NN
the/DT
inevitability/NN
of/IN
the/DT
move/NN
to/TO
small/JJ
machines/NNS
that/WDT
do/VBP
n't/RB
make/VB
compromises/NNS
./.
Toward/IN
that/DT
end/NN
,/,
experts/NNS
say/VBP
the/DT
real/JJ
battle/NN
will/MD
take/VB
place/NN
between/IN
center-stage/JJ
players/NNS
like/IN
Toshiba/NNP
,/,
Zenith/NNP
and/CC
now/RB
Compaq/NNP
./.
Compaq/NNP
's/POS
new/JJ
machines/NNS
are/VBP
considered/VBN
a/DT
direct/JJ
threat/NN
to/TO
start-up/JJ
firms/NNS
like/IN
Dynabook/NNP
Inc./NNP
,/,
which/WDT
introduced/VBD
in/IN
June/NNP
a/DT
computer/NN
that/WDT
,/,
like/IN
Compaq/NNP
's/POS
,/,
uses/VBZ
an/DT
Intel/NNP
286/CD
microprocessor/NN
and/CC
has/VBZ
a/DT
hard/JJ
disk/NN
drive/NN
./.
But/CC
the/DT
Dynabook/NNP
product/NN
is/VBZ
twice/RB
as/IN
heavy/JJ
and/CC
costs/NNS
more/JJR
than/IN
Compaq/NNP
's/POS
./.
Compaq/NNP
's/POS
announcement/NN
also/RB
spells/VBZ
trouble/NN
for/IN
Zenith/NNP
,/,
which/WDT
last/JJ
year/NN
had/VBD
28/CD
%/NN
of/IN
the/DT
U.S./NNP
laptop/NN
market/NN
but/CC
recently/RB
agreed/VBD
to/TO
sell/VB
its/PRP$
computer/NN
business/NN
to/TO
Cie./NNP
des/NNP
Machines/NNP

Bull/NNP
,/,
the/DT
French/JJ
government-owned/JJ
computer/NN
maker/NN
./.
Zenith/NNP
holders/NNS
will/MD
vote/VB
in/IN
December/NNP
on/IN
the/DT
proposed/JJ
$/$
635/CD
million/CD
sale/NN
,/,
a/DT
price/NN
that/WDT
could/MD
slip/VB
because/IN
it/PRP
is/VBZ
pegged/VBN
to/TO
Zenith/NNP
's/POS
share/NN
and/CC
sales/NNS
./.
Compaq/NNP
is/VBZ
already/RB
taking/VBG
aim/NN
at/IN
Zenith/NNP
's/POS
market/NN
share/NN
./.
Rod/NNP
Canion/NNP
,/,
Compaq/NNP
's/POS
president/NN
and/CC
chief/JJ
executive/JJ
officer/NN
,/,
notes/VBZ
pointedly/RB
that/IN
Zenith/NNP
's/POS
$/$
2,000/CD
MinisPort/NNP
uses/VBZ
an/DT
``/``
unconventional/JJ
''/''
two-inch/JJ
floppy/JJ
disk/NN
,/,
whereas/IN
Compaq/NNP
's/POS
new/JJ
machines/NNS
use/VBP
the/DT
more/RBR
common/JJ
3/CD
1\/2-inch/JJ
disk/NN
./.
John/NNP
P./NNP
Frank/NNP
,/,
president/NN
of/IN
Zenith/NNP
Data/NNP
Systems/NNP
,/,
simply/RB
shrugs/NNS
off/RP
such/JJ
criticism/NN
,/,
noting/VBG
that/IN
3/CD
1\/2-inch/JJ
floppies/NNS
were/VBD
also/RB
``/``
unconventional/JJ
''/''
when/WRB
they/PRP
first/RB
replaced/VBD
five-inch/JJ
disks/NNS
./.
``/``
We/PRP
do/VBP
n't/RB
look/VB
at/IN
it/PRP
as/IN
not/RB
being/VBG
a/DT
standard/NN
,/,
we/PRP
look/VBP
at/IN
it/PRP
as/IN
a/DT
new/JJ
standard/NN
,/,
''/''
he/PRP
argues/VBZ
./.
Analysts/NNS
do/VBP
n't/RB
see/VB
it/PRP
that/DT
way/NN
./.
``/``
I/PRP
ca/MD
n't/RB
imagine/VB
that/IN
you/PRP
'll/MD
talk/VB
to/TO
anyone/NN
who/WP
wo/MD
n't/RB
tell/VB
you/PRP
this/DT
is/VBZ
dynamite/NN
for/IN
Compaq/NNP
and/CC
a/DT
stopper/NN
for/IN
everyone/NN
else/RB
,/,
''/''
says/VBZ
Gene/NNP
Talsky/NNP
,/,
president/NN
of/IN
Professional/NNP
Marketing/NNP
Management/NNP
Inc/NNP
./.
Adds/NNP
Bill/NNP
Lempesis/NNP
,/,
senior/JJ
industry/NN
analyst/NN
for/IN
DataQuest/NNP
,/,
a/DT
high-technology/NN
market/NN
research/NN
firm/NN
:/:
``/``
We/PRP
basically/RB
think/VBP
that/IN
these/DT
are/VBP
very/RB
hot/JJ
products/NNS
./.
The/DT
problem/NN
Compaq/NNP
is/VBZ
going/VBG
to/TO
have/VB
is/VBZ
that/IN
they/PRP
wo/MD
n't/RB
be/VB
able/JJ
to/TO
make/VB
enough/JJ
of/IN
them/PRP
./.
''/''
Compaq/NNP
's/POS
machines/NNS
include/VBP
the/DT
3/CD
1\/2-inch/JJ
floppy/JJ
disk/NN
drive/NN
,/,
a/DT
backlit/JJ
screen/NN
that/WDT
is/VBZ
only/RB
1\/4-inch/JJ
thick/JJ
and/CC
an/DT
internal/JJ
expansion/NN
slot/NN
for/IN
a/DT
modem/NN
--/:
in/IN
other/JJ
words/NNS
,/,
almost/RB
all/PDT
the/DT
capabilities/NNS
of/IN
a/DT
typical/JJ
office/NN
machine/NN
./.
Others/NNS
undoubtedly/RB
will/MD
follow/VB
,/,
but/CC
most/JJS
analysts/NNS
believe/VBP
Compaq/NNP
has/VBZ
at/IN
least/JJS
a/DT
six-month/JJ
lead/NN
on/IN
the/DT
competition/NN
./.
Toshiba/NNP
's/POS
line/NN
of/IN
portables/NNS
,/,
for/IN
example/NN
,/,
features/VBZ
the/DT
T-1000/NNP
,/,
which/WDT
is/VBZ
in/IN
the/DT
same/JJ
weight/NN
class/NN
but/CC
is/VBZ
much/RB
slower/JJR
and/CC
has/VBZ
less/JJR
memory/NN
,/,
and/CC
the/DT
T-1600/NNP
,/,
which/WDT
also/RB
uses/VBZ
a/DT
286/CD
microprocessor/NN
,/,
but/CC
which/WDT
weighs/VBZ
almost/RB
twice/RB
as/IN
much/JJ
and/CC
is/VBZ
three/CD
times/NNS
the/DT
size/NN
./.
A/DT
third/JJ
model/NN
,/,
marketed/VBN
in/IN
Japan/NNP
,/,
may/MD
hit/VB
the/DT
U.S./NNP
by/IN
the/DT
end/NN
of/IN
the/DT
first/JJ
quarter/NN
of/IN
1990/CD
,/,
but/CC
by/IN
then/RB
,/,
analysts/NNS
say/VBP
,/,
Compaq/NNP
will/MD
have/VB
established/VBN
itself/PRP
as/IN
one/CD
of/IN
three/CD
major/JJ
players/NNS
./.
What/WP
about/IN
Big/NNP
Blue/NNP
?/.
International/NNP
Business/NNP
Machines/NNP
Corp./NNP
,/,
analysts/NNS
say/VBP
,/,
has/VBZ
been/VBN
burned/VBN
twice/RB
in/IN
trying/VBG
to/TO
enter/VB
the/DT
laptop/NN
market/NN
and/CC
shows/VBZ
no/DT
signs/NNS
of/IN
trying/VBG
to/TO
get/VB
into/IN
notebooks/NNS
anytime/RB
soon/RB
./.
Honeywell/NNP
Inc./NNP
and/CC
International/NNP
Business/NNP
Machines/NNP
Corp./NNP
received/VBD
Air/NNP
Force/NNP
contracts/NNS
to/TO
develop/VB
integrated/JJ
circuits/NNS
for/IN
use/NN
in/IN
space/NN
./.
Honeywell/NNP
's/POS
contract/NN
totaled/VBD
$/$
69.7/CD
million/CD
,/,
and/CC
IBM/NNP
's/POS
$/$
68.8/CD
million/CD
./.
Boeing/NNP
Co./NNP
received/VBD
a/DT
$/$
46.7/CD
million/CD
Air/NNP
Force/NNP
contract/NN
for/IN
developing/VBG
cable/NN
systems/NNS
for/IN
the/DT
Minuteman/NNP
Missile/NNP
./.
General/NNP
Dynamics/NNP
Corp./NNP
received/VBD
a/DT
$/$
29/CD
million/CD
Air/NNP
Force/NNP
contract/NN
for/IN
electronic-warfare/NN
training/NN
sets/NNS
./.
Grumman/NNP
Corp./NNP
received/VBD
an/DT
$/$
18.1/CD
million/CD
Navy/NNP
contract/NN
to/TO
upgrade/VB
aircraft/NN
electronics/NNS
./.
Avco/NNP
Corp./NNP
received/VBD
an/DT
$/$
11.8/CD
million/CD
Army/NNP
contract/NN
for/IN
helicopter/NN
engines/NNS
./.
Sharp/JJ
increases/NNS
in/IN
the/DT
price/NN
of/IN
fresh/JJ
produce/NN
caused/VBD
Spain/NNP
's/POS
September/NNP
consumer/NN
price/NN
index/NN
to/TO
shoot/VB
up/RB
1.1/CD
%/NN
from/IN
the/DT
previous/JJ
month/NN
,/,
pushing/VBG
the/DT
annual/JJ
rate/NN
of/IN
inflation/NN
to/TO
6.8/CD
%/NN
,/,
the/DT
National/NNP
Institute/NNP
of/IN
Statistics/NNP
said/VBD
Friday/NNP
./.
The/DT
monthly/JJ
increase/NN
is/VBZ
the/DT
highest/RB
recorded/VBN
in/IN
the/DT
past/JJ
four/CD
years/NNS
./.
The/DT
index/NN
,/,
which/WDT
registered/VBD
156.8/CD
at/IN
the/DT
end/NN
of/IN
September/NNP
,/,
has/VBZ
a/DT
base/NN
of/IN
100/CD
set/NN
in/IN
1983/CD
and/CC
is/VBZ
n't/RB
seasonally/RB
adjusted/VBN
./.
Prices/NNS
have/VBP
risen/VBN
5.9/CD
%/NN
in/IN
the/DT
first/JJ
nine/CD
months/NNS
of/IN
the/DT
year/NN
,/,
outstripping/VBG
both/CC
the/DT
initial/JJ
3/CD
%/NN
inflation/NN
goal/NN
set/VBN
by/IN
the/DT
government/NN
of/IN
Socialist/NNP
Prime/NNP
Minister/NNP
Felipe/NNP
Gonzalez/NNP
and/CC
the/DT
second/JJ
,/,
revised/VBN
goal/NN
of/IN
5.8/CD
%/NN
./.
Japan/NNP
's/POS
wholesale/JJ
prices/NNS
in/IN
September/NNP
rose/VBD
3.3/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
and/CC
were/VBD
up/RB
0.4/CD
%/NN
from/IN
the/DT
previous/JJ
month/NN
,/,
the/DT
Bank/NNP
of/IN
Japan/NNP
announced/VBD
Friday/NNP
./.
The/DT
wholesale/JJ
price/NN
index/NN
stood/VBD
at/IN
90.1/CD
,/,
compared/VBN
with/IN
a/DT
1985/CD
base/NN
of/IN
100/CD
./.
Plunge/NN
?/.
What/WDT
plunge/NN
?/.
Twenty-four/CD
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
issues/NNS
hit/VBD
52-week/JJ
highs/NNS
during/IN
Friday/NNP
's/POS
trading/NN
,/,
despite/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
's/POS
190.58-point/JJ
plunge/NN
./.
Stocks/NNS
of/IN
utilities/NNS
held/VBD
up/RP
relatively/RB
better/RBR
than/IN
other/JJ
market/NN
sectors/NNS
during/IN
the/DT
sell-off/NN
./.
And/CC
among/IN
the/DT
issues/NNS
hitting/VBG
new/JJ
highs/NNS
were/VBD
Detroit/NNP
Edison/NNP
Co./NNP
and/CC
Niagara/NNP
Mohawk/NNP
Power/NNP
Corp/NNP
./.
Other/JJ
major/JJ
issues/NNS
hitting/VBG
highs/NNS
included/VBD
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
Co./NNP
,/,
Westinghouse/NNP
Electric/NNP
Corp./NNP
,/,
Exxon/NNP
Corp./NNP
and/CC
Cigna/NNP
Corp./NNP
,/,
the/DT
big/JJ
insurer/NN
./.
Of/IN
course/NN
,/,
many/JJ
more/JJR
issues/NNS
--/:
93/CD
--/:
hit/VBP
new/JJ
lows/NNS
./.
These/DT
included/VBD
International/NNP
Business/NNP
Machines/NNP
Corp./NNP
,/,
which/WDT
during/IN
Friday/NNP
's/POS
session/NN
traded/VBD
below/IN
$/$
100/CD
a/DT
share/NN
for/IN
the/DT
first/JJ
time/NN
since/IN
June/NNP
1984/CD
./.
IBM/NNP
closed/VBD
at/IN
$/$
102/CD
,/,
down/RB
$/$
5.625/CD
./.
Other/JJ
new/JJ
lows/NNS
included/VBD
Navistar/NNP
International/NNP
Corp./NNP
,/,
Union/NNP
Carbide/NNP
Corp./NNP
and/CC
Bethlehem/NNP
Steel/NNP
Corp./NNP
,/,
all/DT
of/IN
which/WDT
are/VBP
included/VBN
in/IN
the/DT
industrial/JJ
average/NN
./.
Meanwhile/RB
,/,
two/CD
initial/JJ
public/JJ
offerings/NNS
braved/VBD
the/DT
cascading/JJ
market/NN
in/IN
their/PRP$
maiden/JJ
day/NN
of/IN
national/JJ
over-the-counter/JJ
trading/NN
Friday/NNP
./.
Shares/NNS
of/IN
Rally/NNP
's/POS
Inc./NNP
,/,
an/DT
operator/NN
of/IN
fast-food/NN
restaurants/NNS
,/,
closed/VBD
at/IN
$/$
17/CD
each/DT
,/,
up/RB
from/IN
its/PRP$
$/$
15/CD
offering/NN
price/NN
and/CC
shares/NNS
of/IN
Employee/NNP
Benefit/NNP
Plans/NNP
Inc./NNP
,/,
a/DT
health-care/NN
consultant/NN
,/,
closed/VBD
at/IN
$/$
14.125/CD
,/,
up/RB
from/IN
its/PRP$
$/$
12/CD
offering/NN
price/NN
./.
Ford/NNP
Motor/NNP
Co./NNP
said/VBD
it/PRP
acquired/VBD
5/CD
%/NN
of/IN
the/DT
shares/NNS
in/IN
Jaguar/NNP
PLC/NNP
./.
Jaguar/NNP
,/,
the/DT
London/NNP
Stock/NNP
Exchange/NNP
and/CC
the/DT
U.S./NNP
Securities/NNP
and/CC
Exchange/NNP
Commission/NNP
are/VBP
being/VBG
notified/VBN
of/IN
the/DT
transactions/NNS
,/,
the/DT
company/NN
said/VBD
./.
The/DT
U.S./NNP
Federal/NNP
Trade/NNP
Commission/NNP
advised/VBD
Ford/NNP
last/JJ
week/NN
that/IN
it/PRP
would/MD
n't/RB
raise/VB
any/DT
objection/NN
to/TO
the/DT
acquisition/NN
of/IN
as/RB
much/JJ
as/IN
15/CD
%/NN
of/IN
Jaguar/NNP
shares/NNS
./.
The/DT
No./NN
2/CD
auto/NN
maker/NN
disclosed/VBD
last/JJ
month/NN
that/IN
it/PRP
wants/VBZ
to/TO
buy/VB
as/RB
much/JJ
as/IN
15/CD
%/NN
of/IN
the/DT
British/JJ
luxury-car/NN
maker/NN
,/,
the/DT
maximum/NN
allowed/VBN
under/IN
current/JJ
United/NNP
Kingdom/NNP
government/NN
restrictions/NNS
./.
General/NNP
Motors/NNP
Corp./NNP
said/VBD
it/PRP
had/VBD
discussed/VBN
the/DT
possibility/NN
of/IN
a/DT
joint/JJ
venture/NN
with/IN
Jaguar/NNP
before/IN
Ford/NNP
began/VBD
buying/VBG
shares/NNS
./.
GM/NNP
said/VBD
it/PRP
still/RB
is/VBZ
talking/VBG
with/IN
Jaguar/NNP
about/IN
acquiring/VBG
a/DT
minority/NN
interest/NN
./.
Investors/NNS
who/WP
bought/VBD
stock/NN
with/IN
borrowed/JJ
money/NN
--/:
that/DT
is/VBZ
,/,
``/``
on/IN
margin/NN
''/''
--/:
may/MD
be/VB
more/RBR
worried/JJ
than/IN
most/JJS
following/VBG
Friday/NNP
's/POS
market/NN
drop/NN
./.
That/DT
's/VBZ
because/IN
their/PRP$
brokers/NNS
can/MD
require/VB
them/PRP
to/TO
sell/VB
some/DT
shares/NNS
or/CC
put/VB
up/RP
more/JJR
cash/NN
to/TO
enhance/VB
the/DT
collateral/NN
backing/VBG
their/PRP$
loans/NNS
./.
In/IN
October/NNP
1987/CD
,/,
these/DT
margin/NN
calls/NNS
were/VBD
thought/VBN
to/TO
have/VB
contributed/VBN
to/TO
the/DT
downward/JJ
spiral/NN
of/IN
the/DT
stock/NN
market/NN
./.
Typically/RB
,/,
a/DT
margin/NN
call/NN
occurs/VBZ
when/WRB
the/DT
price/NN
of/IN
a/DT
stock/NN
falls/VBZ
below/IN
75/CD
%/NN
of/IN
its/PRP$
original/JJ
value/NN
./.
If/IN
the/DT
investor/NN
does/VBZ
n't/RB
put/VB
up/RP
the/DT
extra/JJ
cash/NN
to/TO
satisfy/VB
the/DT
call/NN
,/,
the/DT
brokerage/NN
firm/NN
may/MD
begin/VB
liquidating/VBG
the/DT
securities/NNS
./.
But/CC
some/DT
big/JJ
brokerage/NN
firms/NNS
said/VBD
they/PRP
do/VBP
n't/RB
expect/VB
major/JJ
problems/NNS
as/IN
a/DT
result/NN
of/IN
margin/NN
calls/NNS
./.
Margin/NN
calls/NNS
since/IN
Friday/NNP
``/``
have/VBP
been/VBN
higher/JJR
than/IN
usual/JJ
,/,
but/CC
reasonable/JJ
,/,
''/''
a/DT
spokesman/NN
for/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc./NNP
said/VBD
./.
Merrill/NNP
Lynch/NNP
&/CC
Co./NNP
officials/NNS
``/``
do/VBP
n't/RB
expect/VB
{/(
margin/NN
calls/NNS
a/DT
factor/NN
as/IN
in/IN
1987/CD
''/''
because/IN
fewer/JJR
individual/JJ
investors/NNS
are/VBP
buying/VBG
stock/NN
on/IN
margin/NN
,/,
a/DT
spokesman/NN
said/VBD
./.
Hugo/NNP
Quackenbush/NNP
,/,
senior/JJ
vice/NN
president/NN
at/IN
Charles/NNP
Schwab/NNP
Corp./NNP
,/,
the/DT
San/NNP
Francisco-based/JJ
discount/JJ
brokerage/NN
firm/NN
,/,
said/VBD
he/PRP
did/VBD
n't/RB
expect/VB
any/DT
immediate/JJ
problems/NNS
with/IN
margin/NN
calls/NNS
for/IN
Schwab/NNP
customers/NNS
./.
He/PRP
said/VBD
Schwab/NNP
had/VBD
increased/VBN
margin/NN
requirements/NNS
``/``
so/IN
customers/NNS
have/VBP
more/JJR
of/IN
a/DT
cushion/NN
./.
''/''
He/PRP
added/VBD
:/:
``/``
We/PRP
learned/VBD
a/DT
lesson/NN
in/IN
1987/CD
about/IN
volatility/NN
./.
''/''
Avis/NNP
Inc./NNP
,/,
following/VBG
rival/NN
Hertz/NNP
Corp./NNP
's/POS
lead/NN
,/,
said/VBD
it/PRP
is/VBZ
backing/VBG
out/IN
of/IN
frequent-flier/JJ
programs/NNS
with/IN
three/CD
airlines/NNS
./.
The/DT
Garden/NNP
City/NNP
,/,
N.Y./NNP
,/,
car-rental/JJ
company/NN
said/VBD
it/PRP
wo/MD
n't/RB
renew/VB
contracts/NNS
with/IN
NWA/NNP
Inc./NNP
's/POS
Northwest/NNP
Airlines/NNP
unit/NN
,/,
Pan/NNP
Am/NNP
Corp./NNP
's/POS
Pan/NNP
American/NNP
World/NNP
Airways/NNP
unit/NN
and/CC
Midway/NNP
Airlines/NNP
at/IN
the/DT
end/NN
of/IN
this/DT
year/NN
./.
But/CC
it/PRP
remains/VBZ
involved/JJ
in/IN
programs/NNS
with/IN
AMR/NNP
Corp./NNP
's/POS
American/NNP
Airlines/NNP
unit/NN
and/CC
Delta/NNP
Air/NNP
Lines/NNP
./.
Industry/NN
estimates/NNS
put/VBD
Avis/NNP
's/POS
annual/JJ
cost/NN
of/IN
all/DT
five/CD
programs/NNS
at/IN
between/IN
$/$
8/CD
million/CD
and/CC
$/$
14/CD
million/CD
./.
A/DT
spokesman/NN
for/IN
Avis/NNP
would/MD
n't/RB
specify/VB
the/DT
costs/NNS
but/CC
said/VBD
the/DT
three/CD
airlines/NNS
being/VBG
dropped/VBN
account/NN
for/IN
``/``
far/RB
less/JJR
than/IN
half/DT
''/''
of/IN
the/DT
total/NN
./.
Budget/NNP
Rent/NNP
a/DT
Car/NNP
Corp./NNP
,/,
of/IN
Chicago/NNP
,/,
and/CC
National/NNP
Car/NNP
Rental/NNP
Systems/NNP
Inc./NNP
,/,
of/IN
Minneapolis/NNP
,/,
both/DT
said/VBD
they/PRP
had/VBD
no/DT
plans/NNS
to/TO
follow/VB
suit/NN
./.
In/IN
fact/NN
,/,
Budget/NNP
indicated/VBD
it/PRP
saw/VBD
some/DT
benefit/NN
to/TO
staying/VBG
involved/JJ
in/IN
these/DT
programs/NNS
,/,
in/IN
which/WDT
renters/NNS
earn/VBP
frequent-flier/JJ
miles/NNS
and/CC
fliers/NNS
can/MD
get/VB
car-rental/JJ
discounts/NNS
./.
``/``
I/PRP
can/MD
not/RB
see/VB
how/WRB
this/DT
news/NN
by/IN
Hertz/NNP
and/CC
Avis/NNP
can/MD
not/RB
benefit/VB
Budget/NNP
's/POS
programs/NNS
,/,
''/''
said/VBD
Bob/NNP
Wilson/NNP
,/,
Budget/NNP
's/POS
vice/NN
president/NN
,/,
marketing/NN
planning/NN
./.
Northwest/NNP
and/CC
Midway/NNP
are/VBP
two/CD
of/IN
the/DT
five/CD
airlines/NNS
with/IN
which/WDT
Budget/NNP
has/VBZ
agreements/NNS
./.
National/NNP
also/RB
participates/VBZ
in/IN
the/DT
Northwest/NNP
frequent-flier/JJ
program/NN
along/IN
with/IN
four/CD
other/JJ
airlines/NNS
,/,
including/VBG
Delta/NNP
and/CC
USAir/NNP
Group/NNP
Inc./NNP
's/POS
USAir/NNP
unit/NN
./.
A/DT
month/NN
ago/RB
,/,
Hertz/NNP
,/,
of/IN
Park/NNP
Ridge/NNP
,/,
N.J./NNP
,/,
said/VBD
that/IN
it/PRP
would/MD
drop/VB
its/PRP$
marketing/NN
agreements/NNS
at/IN
year/NN
end/NN
with/IN
Delta/NNP
,/,
America/NNP
West/NNP
and/CC
Texas/NNP
Air/NNP
Corp./NNP
's/POS
Continental/NNP
Airlines/NNP
and/CC
Eastern/NNP
Airlines/NNP
,/,
and/CC
that/IN
pacts/NNS
with/IN
American/NNP
Airlines/NNP
,/,
UAL/NNP
Inc/NNP
's/POS
United/NNP
Airlines/NNP
and/CC
USAir/NNP
also/RB
would/MD
be/VB
ended/VBN
.../:
sometime/RB

after/IN
Dec./NNP
31/CD
./.
At/IN
the/DT
time/NN
,/,
Hertz/NNP
said/VBD
its/PRP$
annual/JJ
fees/NNS
to/TO
those/DT
airlines/NNS
amounted/VBD
to/TO
$/$
20/CD
million/CD
and/CC
that/IN
the/DT
value/NN
of/IN
redeemed/VBN
awards/NNS
topped/VBD
$/$
15/CD
million/CD
./.
Analysts/NNS
and/CC
competitors/NNS
,/,
however/RB
,/,
doubt/VBP
the/DT
numbers/NNS
were/VBD
that/RB
high/JJ
./.
Budget/NNP
said/VBD
its/PRP$
frequent-flier/JJ
costs/NNS
are/VBP
``/``
substantially/RB
below/IN
''/''
Avis/NNP
's/POS
level/NN
./.
Robert/NNP
D./NNP
Cardillo/NNP
,/,
Avis/NNP
vice/NN
president/NN
of/IN
marketing/NN
,/,
said/VBD
,/,
``/``
The/DT
proliferation/NN
and/CC
costs/NNS
attached/VBN
to/TO
{/(
frequent-flier/JJ
programs/NNS
their/PRP$
value/NN
./.
''/''
This/DT
year/NN
has/VBZ
been/VBN
difficult/JJ
for/IN
both/DT
Hertz/NNP
and/CC
Avis/NNP
,/,
said/VBD
Charles/NNP
Finnie/NNP
,/,
car-rental/JJ
industry/NN
analyst/NN
at/IN
Alex/NNP
./.
Brown/NNP
&/CC
Sons/NNP
./.
``/``
They/PRP
've/VBP
been/VBN
looking/VBG
to/TO
get/VB
their/PRP$
costs/NNS
down/RB
,/,
and/CC
this/DT
is/VBZ
a/DT
fairly/RB
sensible/JJ
way/NN
to/TO
do/VB
it/PRP
,/,
''/''
he/PRP
said/VBD
./.
CBS/NNP
Inc./NNP
is/VBZ
cutting/VBG
``/``
The/NNP
Pat/NNP
Sajak/NNP
Show/NNP
''/''
down/IN
to/TO
one/CD
hour/NN
from/IN
its/PRP$
current/JJ
90/CD
minutes/NNS
./.
CBS/NNP
insisted/VBD
the/DT
move/NN
was/VBD
n't/RB
a/DT
setback/NN
for/IN
the/DT
program/NN
,/,
which/WDT
is/VBZ
the/DT
network/NN
's/POS
first/JJ
entry/NN
into/IN
the/DT
late-night/JJ
talk/NN
show/NN
format/NN
since/IN
1972/CD
./.
``/``
I/PRP
have/VBP
every/DT
intention/NN
of/IN
making/VBG
this/DT
the/DT
best/JJS
possible/JJ
show/NN
and/CC
having/VBG
it/PRP
run/VB
one/CD
hour/NN
is/VBZ
the/DT
best/JJS
way/NN
to/TO
it/PRP
,/,
''/''
said/VBD
Rod/NNP
Perth/NNP
,/,
who/WP
was/VBD
named/VBN
vice/NN
president/NN
of/IN
late/JJ
night/NN
entertainment/NN
in/IN
August/NNP
./.
``/``
This/DT
will/MD
raise/VB
the/DT
energy/NN
level/NN
of/IN
the/DT
show/NN
./.
''/''
CBS/NNP
will/MD
continue/VB
to/TO
program/VB
action-adventure/JJ
shows/NNS
to/TO
follow/VB
the/DT
Sajak/NNP
hour/NN
./.
But/CC
CBS/NNP
News/NNP
will/MD
extend/VB
its/PRP$
four-hour/JJ
``/``
Nightwatch/NNP
''/''
by/IN
30/CD
minutes/NNS
and/CC
begin/VB
at/IN
1:30/CD
a.m/RB
./.
The/DT
show/NN
,/,
despite/IN
a/DT
promising/JJ
start/NN
,/,
has/VBZ
slipped/VBN
badly/RB
in/IN
the/DT
weekly/JJ
ratings/NNS
as/IN
compiled/VBN
by/IN
A.C./NNP
Nielsen/NNP
Co./NNP
,/,
finishing/VBG
far/RB
below/IN
``/``
Tonight/NNP
''/''
on/IN
NBC/NNP
,/,
a/DT
unit/NN
of/IN
General/NNP
Electric/NNP
Co./NNP
,/,
and/CC
``/``
Nightline/NNP
''/''
on/IN
ABC-TV/NNP
,/,
a/DT
unit/NN
of/IN
Capital/NNP
Cities\/ABC/NNP
Inc/NNP
./.
Further/RB
fractioning/VBG
the/DT
late-night/JJ
audience/NN
is/VBZ
the/DT
addition/NN
of/IN
the/DT
``/``
Arsenio/NNP
Hall/NNP
Show/NNP
,/,
''/''
syndicated/VBN
by/IN
Paramount/NNP
Communications/NNP
Inc/NNP
./.
Tandem/NNP
Computers/NNP
Inc./NNP
,/,
preparing/VBG
to/TO
fight/VB
with/IN
International/NNP
Business/NNP
Machines/NNP
Corp./NNP
for/IN
a/DT
piece/NN
of/IN
the/DT
mainframe/JJ
business/NN
,/,
said/VBD
it/PRP
expects/VBZ
to/TO
post/VB
higher/JJR
revenue/NN
and/CC
earnings/NNS
for/IN
its/PRP$
fiscal/JJ
fourth/JJ
quarter/NN
ended/VBD
Sept./NNP
30/CD
./.
Tandem/NNP
said/VBD
it/PRP
expects/VBZ
to/TO
report/VB
revenue/NN
of/IN
about/RB
$/$
450/CD
million/CD
and/CC
earnings/NNS
of/IN
35/CD
cents/NNS
to/TO
40/CD
cents/NNS
a/DT
share/NN
./.
The/DT
results/NNS
,/,
which/WDT
are/VBP
in/IN
line/NN
with/IN
analysts/NNS
'/POS
estimates/NNS
,/,
reflect/VBP
``/``
a/DT
continued/JJ
improvement/NN
in/IN
our/PRP$
U.S./NNP
business/NN
,/,
''/''
said/VBD
James/NNP
Treybig/NNP
,/,
Tandem/NNP
's/POS
chief/JJ
executive/JJ
officer/NN
./.
In/IN
the/DT
year-earlier/JJ
period/NN
,/,
Tandem/NNP
reported/VBD
net/JJ
income/NN
of/IN
$/$
30.1/CD
million/CD
,/,
or/CC
31/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
383.9/CD
million/CD
./.
Tandem/NNP
expects/VBZ
to/TO
report/VB
the/DT
full/JJ
results/NNS
for/IN
the/DT
quarter/NN
next/IN
week/NN
./.
Analysts/NNS
have/VBP
predicted/VBN
that/IN
the/DT
Cupertino/NNP
,/,
Calif./NNP
,/,
company/NN
will/MD
report/VB
revenue/NN
of/IN
$/$
430/CD
million/CD
to/TO
$/$
460/CD
million/CD
and/CC
earnings/NNS
of/IN
35/CD
cents/NNS
to/TO
40/CD
cents/NNS
a/DT
share/NN
./.
Commenting/VBG
on/IN
the/DT
results/NNS
for/IN
the/DT
quarter/NN
,/,
Mr./NNP
Treybig/NNP
said/VBD
the/DT
strength/NN
of/IN
the/DT
company/NN
's/POS
domestic/JJ
business/NN
came/VBD
as/IN
``/``
a/DT
surprise/NN
''/''
to/TO
him/PRP
,/,
noting/VBG
that/IN
sales/NNS
``/``
in/IN
every/DT
region/NN
of/IN
the/DT
U.S./NNP
exceeded/VBD
our/PRP$
plan/NN
./.
''/''
The/DT
company/NN
's/POS
U.S./NNP
performance/NN
was/VBD
helped/VBN
by/IN
``/``
a/DT
record/JJ
quarter/NN
for/IN
new/JJ
customers/NNS
,/,
''/''
he/PRP
said/VBD
./.
Tandem/NNP
makes/VBZ
``/``
fault-tolerant/JJ
''/''
computers/NNS
--/:
machines/NNS
with/IN
built-in/JJ
backup/JJ
systems/NNS
--/:
that/WDT
run/VBP
stock/NN
exchanges/NNS
,/,
networks/NNS
of/IN
automatic/JJ
tellers/NNS
and/CC
other/JJ
complex/JJ
computer/NN
systems/NNS
./.
Tomorrow/NN
the/DT
company/NN
is/VBZ
scheduled/VBN
to/TO
announce/VB
its/PRP$
most/JJS
powerful/JJ
computer/NN
ever/RB
,/,
which/WDT
for/IN
the/DT
first/JJ
time/NN
will/MD
bring/VB
it/PRP
into/IN
direct/JJ
competition/NN
with/IN
makers/NNS
of/IN
mainframe/JJ
computers/NNS
./.
Tandem/NNP
's/POS
new/JJ
high-end/JJ
computer/NN
is/VBZ
called/VBN
Cyclone/NNP
./.
Prices/NNS
for/IN
the/DT
machine/NN
,/,
which/WDT
can/MD
come/VB
in/IN
various/JJ
configurations/NNS
,/,
are/VBP
$/$
2/CD
million/CD
to/TO
$/$
10/CD
million/CD
./.
Analysts/NNS
expect/VBP
the/DT
new/JJ
computer/NN
to/TO
wrest/VB
a/DT
hefty/JJ
slice/NN
of/IN
business/NN
away/RB
from/IN
IBM/NNP
,/,
the/DT
longtime/JJ
leader/NN
in/IN
mainframes/NNS
./.
``/``
We/PRP
believe/VBP
they/PRP
could/MD
siphon/VB
perhaps/RB
two/CD
to/TO
three/CD
billion/CD
dollars/NNS
from/IN
IBM/NNP
''/''
over/IN
the/DT
next/JJ
few/JJ
years/NNS
,/,
said/VBD
George/NNP
Weiss/NNP
,/,
an/DT
analyst/NN
at/IN
the/DT
Gartner/JJR
group/NN
./.
That/DT
will/MD
spur/VB
Tandem/NNP
's/POS
growth/NN
./.
``/``
I/PRP
'd/MD
be/VB
disappointed/JJ
if/IN
the/DT
company/NN
grew/VBD
by/IN
less/JJR
than/IN
20/CD
%/NN
next/JJ
year/NN
,/,
''/''
said/VBD
John/NNP
Levinson/NNP
,/,
an/DT
analyst/NN
at/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
./.
IBM/NNP
is/VBZ
expected/VBN
to/TO
respond/VB
to/TO
Tandem/NNP
's/POS
Cyclone/NNP
by/IN
discounting/VBG
its/PRP$
own/JJ
mainframes/NNS
,/,
which/WDT
analysts/NNS
say/VBP
are/VBP
roughly/RB
three/CD
times/NNS
the/DT
price/NN
of/IN
a/DT
comparable/JJ
system/NN
from/IN
Tandem/NNP
./.
``/``
Obviously/RB
IBM/NNP
can/MD
give/VB
bigger/JJR
discounts/NNS
to/TO
users/NNS
immediately/RB
,/,
''/''
said/VBD
Mr./NNP
Weiss/NNP
./.
But/CC
Mr./NNP
Treybig/NNP
questions/NNS
whether/IN
that/DT
will/MD
be/VB
enough/JJ
to/TO
stop/VB
Tandem/NNP
's/POS
first/JJ
mainframe/NN
from/IN
taking/VBG
on/RP
some/DT
of/IN
the/DT
functions/NNS
that/WDT
large/JJ
organizations/NNS
previously/RB
sought/VBD
from/IN
Big/NNP
Blue/NNP
's/POS
machines/NNS
./.
``/``
The/DT
answer/NN
is/VBZ
n't/RB
price/NN
reductions/NNS
,/,
but/CC
new/JJ
systems/NNS
,/,
''/''
he/PRP
said/VBD
./.
Nevertheless/RB
,/,
Tandem/NNP
faces/VBZ
a/DT
variety/NN
of/IN
challenges/NNS
,/,
the/DT
biggest/JJS
being/NN
that/IN
customers/NNS
generally/RB
view/VBP
the/DT
company/NN
's/POS
computers/NNS
as/IN
complementary/JJ
to/TO
IBM/NNP
's/POS
mainframes/NNS
./.
Even/RB
Mr./NNP
Treybig/NNP
is/VBZ
reluctant/JJ
to/TO
abandon/VB
this/DT
notion/NN
,/,
insisting/VBG
that/IN
Tandem/NNP
's/POS
new/JJ
machines/NNS
are/VBP
n't/RB
replacements/NNS
for/IN
IBM/NNP
's/POS
mainframes/NNS
./.
``/``
We/PRP
're/VBP
after/IN
a/DT
little/JJ
bigger/JJR
niche/NN
,/,
''/''
he/PRP
said/VBD
./.
Do/VB
n't/RB
jump/VB
yet/RB
./.
The/DT
stock/NN
market/NN
's/POS
swoon/NN
may/MD
turn/VB
out/RP
to/TO
be/VB
good/JJ
news/NN
for/IN
the/DT
economy/NN
./.
In/IN
one/CD
wild/JJ
hour/NN
of/IN
trading/VBG
,/,
the/DT
market/NN
managed/VBD
to/TO
accomplish/VB
what/WP
the/DT
Bush/NNP
administration/NN
has/VBZ
been/VBN
trying/VBG
to/TO
do/VB
,/,
unsuccessfully/RB
,/,
for/IN
weeks/NNS
./.
It/PRP
is/VBZ
forcing/VBG
the/DT
Federal/NNP
Reserve/NNP
to/TO
ease/VB
its/PRP$
grip/NN
on/IN
credit/NN
and/CC
it/PRP
took/VBD
the/DT
wind/NN
out/IN
of/IN
a/DT
previously/RB
irrepressible/JJ
dollar/NN
./.
The/DT
resulting/VBG
decline/NN
in/IN
interest/NN
rates/NNS
and/CC
the/DT
value/NN
of/IN
the/DT
dollar/NN
could/MD
reinvigorate/VB
American/JJ
business/NN
--/:
indeed/RB
,/,
the/DT
entire/JJ
economy/NN
./.
This/DT
may/MD
sound/VB
strangely/RB
optimistic/JJ
./.
After/IN
all/DT
,/,
until/IN
a/DT
few/JJ
years/NNS
ago/RB
,/,
the/DT
stock/NN
market/NN
was/VBD
viewed/VBN
as/IN
a/DT
barometer/NN
of/IN
the/DT
national/JJ
economy/NN
./.
When/WRB
it/PRP
went/VBD
down/RB
,/,
by/IN
all/DT
tradition/NN
,/,
the/DT
economy/NN
followed/VBD
./.
That/DT
has/VBZ
changed/VBN
,/,
partly/RB
because/IN
the/DT
two/CD
years/NNS
following/VBG
the/DT
worst/JJS
stock-market/NN
plunge/NN
in/IN
history/NN
have/VBP
been/VBN
reasonably/RB
comfortable/JJ
./.
The/DT
1987/CD
crash/NN
was/VBD
``/``
a/DT
false/JJ
alarm/NN
however/WRB
you/PRP
view/VBP
it/PRP
,/,
''/''
says/VBZ
University/NNP
of/IN
Chicago/NNP
economist/NN
Victor/NNP
Zarnowitz/NNP
./.
The/DT
market/NN
seems/VBZ
increasingly/RB
disconnected/JJ
from/IN
the/DT
rest/NN
of/IN
the/DT
nation/NN
./.
Its/PRP$
spasms/NNS
ca/MD
n't/RB
be/VB
traced/VBN
to/TO
fundamental/JJ
business/NN
conditions/NNS
,/,
nor/CC
do/VB
they/PRP
appear/VBP
to/TO
presage/VB
major/JJ
shifts/NNS
in/IN
the/DT
economy/NN
./.
``/``
The/DT
market/NN
today/NN
has/VBZ
a/DT
life/NN
of/IN
its/PRP$
own/JJ
,/,
''/''
John/NNP
Akers/NNP
,/,
chairman/NN
of/IN
International/NNP
Business/NNP
Machines/NNP
Corp./NNP
,/,
said/VBD
Saturday/NNP
./.
``/``
There/EX
's/VBZ
nothing/NN
rational/JJ
about/IN
this/DT
kind/NN
of/IN
action/NN
./.
''/''
Of/IN
course/NN
,/,
the/DT
health/NN
of/IN
the/DT
economy/NN
will/MD
be/VB
threatened/VBN
if/IN
the/DT
market/NN
continues/VBZ
to/TO
dive/VB
this/DT
week/NN
./.
Sharply/RB
falling/VBG
stock/NN
prices/NNS
do/VBP
reduce/VB
consumer/NN
wealth/NN
,/,
damage/VB
business/NN
confidence/NN
and/CC
discourage/VB
the/DT
foreign/JJ
investors/NNS
upon/IN
whom/WP
the/DT
U.S./NNP
now/RB
relies/VBZ
for/IN
financial/JJ
sustenance/NN
./.
The/DT
financial-services/NNS
industry/NN
was/VBD
battered/VBN
by/IN
the/DT
1987/CD
crash/NN
./.
What/WP
's/VBZ
more/JJR
,/,
although/IN
the/DT
stock/NN
market/NN
is/VBZ
far/RB
less/RBR
overvalued/JJ
today/NN
than/IN
two/CD
years/NNS
ago/RB
,/,
the/DT
U.S./NNP
economy/NN
is/VBZ
weaker/JJR
./.
Growth/NN
is/VBZ
slower/JJR
./.
Profits/NNS
are/VBP
softer/JJR
./.
Debt/NN
burdens/NNS
are/VBP
heavier/JJR
./.
But/CC
if/IN
the/DT
stock/NN
market/NN
does/VBZ
n't/RB
continue/VB
to/TO
plummet/VB
,/,
the/DT
beneficial/JJ
effects/NNS
of/IN
lower/JJR
interest/NN
rates/NNS
and/CC
a/DT
lower/JJR
dollar/NN
may/MD
well/RB
dominate/VB
./.
The/DT
Fed/NNP
,/,
which/WDT
until/IN
Friday/NNP
had/VBD
been/VBN
resisting/VBG
moves/NNS
to/TO
ease/VB
credit/NN
,/,
is/VBZ
now/RB
poised/VBN
to/TO
pour/VB
money/NN
into/IN
the/DT
economy/NN
if/IN
needed/VBN
to/TO
soothe/VB
the/DT
markets/NNS
./.
Fed/NNP
officials/NNS
may/MD
protest/VB
that/IN
this/DT
does/VBZ
n't/RB
necessarily/RB
mean/VB
a/DT
fundamental/JJ
change/NN
in/IN
their/PRP$
interest-rate/NN
policies/NNS
./.
But/CC
the/DT
experience/NN
of/IN
the/DT
1987/CD
crash/NN
suggests/VBZ
the/DT
Fed/NNP
is/VBZ
likely/JJ
to/TO
bring/VB
down/RP
short-term/JJ
interest/NN
rates/NNS
in/IN
its/PRP$
effort/NN
to/TO
calm/VB
markets/NNS
./.
Anticipating/VBG
the/DT
Fed/NNP
's/POS
move/NN
,/,
money/NN
traders/NNS
lowered/VBD
a/DT
key/JJ
interest/NN
rate/NN
known/VBN
as/IN
the/DT
Federal/NNP
Funds/NNP
rate/NN
to/TO
8.625/CD
%/NN
late/RB
Friday/NNP
,/,
down/RB
from/IN
8.820/CD
%/NN
the/DT
day/NN
before/RB
./.
Tiny/JJ
movements/NNS
in/IN
the/DT
rate/NN
,/,
which/WDT
is/VBZ
what/WP
banks/NNS
charge/VBP
each/DT
other/JJ
for/IN
overnight/JJ
loans/NNS
,/,
are/VBP
usually/RB
among/IN
the/DT
few/JJ
visible/JJ
tracks/NNS
that/WDT
the/DT
Fed/NNP
leaves/VBZ
on/IN
the/DT
monetary/JJ
markets/NNS
./.
The/DT
dollar/NN
also/RB
began/VBD
to/TO
decline/VB
Friday/NNP
as/IN
the/DT
stock/NN
market/NN
's/POS
plunge/NN
caused/VBD
some/DT
investors/NNS
to/TO
reassess/VB
their/PRP$
desire/NN
to/TO
invest/VB
in/IN
the/DT
U.S/NNP
./.
Treasury/NNP
officials/NNS
have/VBP
been/VBN
arguing/VBG
for/IN
months/NNS
that/IN
the/DT
dollar/NN
's/POS
strength/NN
was/VBD
out/IN
of/IN
whack/NN
with/IN
economic/JJ
fundamentals/NNS
,/,
threatening/VBG
to/TO
extinguish/VB
the/DT
export/NN
boom/NN
that/WDT
has/VBZ
sustained/VBN
manufacturers/NNS
for/IN
several/JJ
years/NNS
./.
The/DT
market/NN
drop/NN
has/VBZ
now/RB
apparently/RB
convinced/VBN
foreign/JJ
investors/NNS
that/IN
the/DT
Treasury/NNP
was/VBD
right/JJ
about/IN
the/DT
overpriced/JJ
dollar/NN
./.
A/DT
modest/JJ
drop/NN
in/IN
the/DT
dollar/NN
--/:
only/RB
a/DT
modest/JJ
one/CD
,/,
mind/VB
you/PRP
--/:
would/MD
be/VB
welcomed/VBN
by/IN
the/DT
U.S/NNP
./.
That/DT
was/VBD
n't/RB
the/DT
case/NN
in/IN
1987/CD
,/,
when/WRB
the/DT
dollar/NN
was/VBD
so/RB
weak/JJ
that/IN
some/DT
economists/NNS
and/CC
government/NN
officials/NNS
seriously/RB
worried/VBD
that/IN
it/PRP
might/MD
collapse/VB
,/,
producing/VBG
panic/NN
among/IN
foreign/JJ
investors/NNS
and/CC
diminishing/VBG
the/DT
flow/NN
of/IN
foreign/JJ
capital/NN
to/TO
the/DT
U.S/NNP
./.
Another/DT
big/JJ
difference/NN
between/IN
1987/CD
and/CC
1989/CD
is/VBZ
n't/RB
so/RB
comforting/JJ
./.
In/IN
the/DT
third/JJ
quarter/NN
of/IN
1987/CD
,/,
the/DT
economy/NN
spurted/VBD
at/IN
an/DT
inflation-adjusted/JJ
annual/JJ
rate/NN
of/IN
5.3/CD
%/NN
./.
The/DT
consensus/NN
among/IN
economists/NNS
is/VBZ
that/IN
it/PRP
grew/VBD
a/DT
much/RB
more/RBR
sluggish/JJ
2.3/CD
%/NN
in/IN
the/DT
third/JJ
quarter/NN
of/IN
1989/CD
,/,
which/WDT
ended/VBD
two/CD
weeks/NNS
ago/RB
./.
The/DT
plunge/NN
in/IN
stock/NN
prices/NNS
``/``
is/VBZ
happening/VBG
at/IN
a/DT
time/NN
when/WRB
the/DT
economy/NN
has/VBZ
already/RB
slowed/VBN
down/RP
,/,
''/''
says/VBZ
economist/NN
Lawrence/NNP
Chimerine/NNP
of/IN
WEFA/NNP
Group/NNP
,/,
a/DT
Bala/NNP
Cynwyd/NNP
,/,
Pa./NNP
,/,
forecasting/NN
company/NN
./.
``/``
A/DT
lot/NN
of/IN
pent-up/JJ
demand/NN
is/VBZ
gone/VBN
./.
''/''
Consumer/NN
spending/NN
did/VBD
drop/VB
in/IN
the/DT
months/NNS
following/VBG
Black/NNP
Monday/NNP
1987/CD
--/:
``/``
but/CC
only/RB
slightly/RB
and/CC
for/IN
a/DT
short/JJ
period/NN
of/IN
time/NN
,/,
''/''
recalls/VBZ
Mr./NNP
Zarnowitz/NNP
,/,
a/DT
longtime/JJ
student/NN
of/IN
business/NN
cycles/NNS
./.
``/``
That/DT
was/VBD
offset/VBN
by/IN
strength/NN
elsewhere/RB
./.
The/DT
effects/NNS
some/DT
had/VBD
feared/VBN
or/CC
expected/VBN
./.
''/''
Today/NN
,/,
he/PRP
frets/VBZ
,/,
exports/NNS
and/CC
business/NN
investment/NN
spending/NN
may/MD
be/VB
insufficient/JJ
to/TO
pick/VB
up/RP
the/DT
slack/JJ
if/IN
stock/NN
prices/NNS
sink/VBP
this/DT
week/NN
and/CC
if/IN
consumers/NNS
retrench/VBP
in/IN
reaction/NN
./.
What/WP
's/VBZ
more/JJR
,/,
the/DT
corporate/JJ
borrowing/NN
binge/NN
has/VBZ
n't/RB
abated/VBN
in/IN
the/DT
past/JJ
two/CD
years/NNS
./.
``/``
We/PRP
've/VBP
had/VBN
two/CD
more/JJR
years/NNS
of/IN
significant/JJ
accumulation/NN
of/IN
debt/NN
.../:
just/RB
at/IN
the/DT
time/NN
when/WRB
earnings/NNS
are/VBP
being/VBG
squeezed/VBN
,/,
''/''
Mr./NNP
Chimerine/NNP
notes/VBZ
./.
The/DT
more/RBR
a/DT
company/NN
relies/VBZ
on/IN
borrowed/VBN
money/NN
,/,
the/DT
greater/JJR
its/PRP$
sensitivity/NN
to/TO
an/DT
economic/JJ
slowdown/NN
./.
A/DT
company/NN
with/IN
a/DT
strong/JJ
balance/NN
sheet/NN
can/MD
withstand/VB
an/DT
unanticipated/JJ
storm/NN
;/:
a/DT
highly/RB
leveraged/JJ
company/NN
may/MD
end/VB
up/RP
in/IN
bankruptcy/NN
court/NN
./.
The/DT
Fed/NNP
,/,
of/IN
course/NN
,/,
knows/VBZ
that/DT
very/RB
well/RB
--/:
hence/RB
its/PRP$
readiness/NN
to/TO
pump/VB
credit/NN
into/IN
the/DT
economy/NN
this/DT
morning/NN
./.
But/CC
,/,
in/IN
the/DT
process/NN
,/,
the/DT
Fed/NNP
risks/VBZ
reigniting/VBG
inflation/NN
./.
Even/RB
before/IN
Friday/NNP
's/POS
events/NNS
,/,
Harvard/NNP
University/NNP
economist/NN
Benjamin/NNP
Friedman/NNP
was/VBD
arguing/VBG
that/IN
the/DT
Fed/NNP
wo/MD
n't/RB
be/VB
able/JJ
to/TO
live/VB
up/IN
to/TO
its/PRP$
tough/JJ
words/NNS
on/IN
eliminating/VBG
inflation/NN
because/IN
of/IN
its/PRP$
responsibility/NN
to/TO
protect/VB
fragile/JJ
financial/JJ
markets/NNS
,/,
banks/NNS
and/CC
highly/RB
leveraged/JJ
corporations/NNS
./.
The/DT
biggest/JJS
threat/NN
on/IN
the/DT
economic/JJ
horizon/NN
right/RB
now/RB
is/VBZ
n't/RB
recession/NN
,/,
he/PRP
reasons/VBZ
;/:
it/PRP
's/VBZ
an/DT
outbreak/NN
of/IN
uncontrolled/JJ
inflation/NN
./.
In/IN
the/DT
end/NN
,/,
the/DT
1987/CD
collapse/NN
suggested/VBD
,/,
the/DT
economy/NN
does/VBZ
n't/RB
move/VB
in/IN
lockstep/NN
with/IN
stock/NN
prices/NNS
./.
The/DT
economy/NN
does/VBZ
,/,
however/RB
,/,
depend/VB
on/IN
the/DT
confidence/NN
of/IN
businesses/NNS
,/,
consumers/NNS
and/CC
foreign/JJ
investors/NNS
./.
A/DT
panic/NN
on/IN
Wall/NNP
Street/NNP
does/VBZ
n't/RB
exactly/RB
inspire/VB
confidence/NN
./.
Surveys/NNS
suggested/VBD
that/IN
consumer/NN
confidence/NN
was/VBD
high/JJ
before/IN
Friday/NNP
./.
A/DT
190-point/JJ
drop/NN
is/VBZ
n't/RB
likely/JJ
to/TO
make/VB
much/JJ
of/IN
a/DT
dent/NN
;/:
multiply/VB
that/IN
a/DT
few/JJ
times/NNS
over/RB
,/,
though/RB
,/,
and/CC
it/PRP
will/MD
./.
If/IN
the/DT
reactions/NNS
of/IN
executives/NNS
gathered/VBD
Saturday/NNP
at/IN
Hot/NNP
Springs/NNP
,/,
Va./NNP
,/,
for/IN
the/DT
Business/NNP
Council/NNP
meetings/NNS
are/VBP
typical/JJ
,/,
business/NN
leaders/NNS
were/VBD
n't/RB
overly/RB
rattled/VBN
by/IN
Friday/NNP
's/POS
decline/NN
./.
And/CC
if/IN
foreign/JJ
investors/NNS
become/VBP
a/DT
tad/NN
more/RBR
cautious/JJ
--/:
well/RB
,/,
the/DT
dollar/NN
's/POS
recent/JJ
strength/NN
suggests/VBZ
that/IN
the/DT
U.S./NNP
can/MD
stand/VB
it/PRP
./.
On/IN
the/DT
bottom/JJ
line/NN
,/,
the/DT
most/RBS
comforting/JJ
fact/NN
for/IN
the/DT
economic/JJ
outlook/NN
is/VBZ
that/IN
we/PRP
've/VBP
been/VBN
through/IN
this/DT
before/RB
./.
Two/CD
years/NNS
ago/RB
,/,
about/RB
the/DT
only/JJ
point/NN
of/IN
comparison/NN
was/VBD
the/DT
1929/CD
crash/NN
and/CC
the/DT
subsequent/JJ
Depression/NN
./.
The/DT
doomsayers/NNS
had/VBD
a/DT
receptive/JJ
audience/NN
./.
The/DT
prosperity/NN
that/WDT
followed/VBD
Black/NNP
Monday/NNP
permits/VBZ
a/DT
more/RBR
optimistic/JJ
view/NN
today/NN
./.
At/IN
the/DT
very/RB
least/JJS
,/,
the/DT
establishment/NN
here/RB
is/VBZ
taking/VBG
comfort/NN
from/IN
the/DT
nation/NN
's/POS
success/NN
in/IN
handling/VBG
the/DT
last/JJ
go-around/NN
./.
As/IN
Sen./NNP
Lloyd/NNP
Bentsen/NNP
D./NNP
,/,
Texas/NNP
The/DT
Fed/NNP
avoided/VBD
a/DT
meltdown/JJ
last/JJ
time/NN
./.
They/PRP
are/VBP
more/RBR
sophisticated/JJ
this/DT
time/NN
./.
''/''
The/DT
chemical/NN
industry/NN
is/VBZ
expected/VBN
to/TO
report/VB
that/IN
profits/NNS
eroded/VBD
in/IN
the/DT
third/JJ
quarter/NN
because/IN
of/IN
skidding/VBG
prices/NNS
in/IN
the/DT
commodity/NN
end/NN
of/IN
the/DT
business/NN
./.
Producers/NNS
of/IN
commodity/NN
chemicals/NNS
,/,
the/DT
basic/JJ
chemicals/NNS
produced/VBN
in/IN
huge/JJ
volumes/NNS
for/IN
other/JJ
manufacturers/NNS
,/,
have/VBP
seen/VBN
sharp/JJ
inventory/NN
cutting/NN
by/IN
buyers/NNS
./.
Once/RB
the/DT
chief/JJ
beneficiaries/NNS
of/IN
the/DT
industry/NN
's/POS
now/RB
fading/VBG
boom/NN
,/,
these/DT
producers/NNS
also/RB
will/MD
be/VB
reporting/VBG
against/IN
exceptionally/RB
strong/JJ
performances/NNS
in/IN
the/DT
1988/CD
third/JJ
quarter/NN
./.
``/``
For/IN
some/DT
of/IN
these/DT
companies/NNS
,/,
this/DT
will/MD
be/VB
the/DT
first/JJ
quarter/NN
with/IN
year-to-year/JJ
negative/JJ
comparisons/NNS
,/,
''/''
says/VBZ
Leonard/NNP
Bogner/NNP
,/,
a/DT
chemical/NN
industry/NN
analyst/NN
at/IN
Prudential/NNP
Bache/NNP
Research/NNP
./.
``/``
This/DT
could/MD
be/VB
the/DT
first/JJ
of/IN
five/CD
or/CC
six/CD
down/JJ
quarters/NNS
./.
''/''
Perhaps/RB
most/RBS
prominent/JJ
,/,
Dow/NNP
Chemical/NNP
Co./NNP
,/,
which/WDT
as/IN
of/IN
midyear/NN
had/VBD
racked/VBN
up/RP
eight/CD
consecutive/JJ
record/JJ
quarters/NNS
,/,
is/VBZ
expected/VBN
to/TO
report/VB
that/DT
profit/NN
decreased/VBD
in/IN
the/DT
latest/JJS
quarter/NN
from/IN
a/DT
year/NN
earlier/RBR
,/,
if/IN
only/RB
by/IN
a/DT
shade/NN
./.
Though/IN
Dow/NNP
has/VBZ
aggressively/RB
diversified/VBN
into/IN
specialty/NN
chemicals/NNS
and/CC
pharmaceuticals/NNS
,/,
the/DT
company/NN
still/RB
has/VBZ
a/DT
big/JJ
stake/NN
in/IN
polyethylene/NN
,/,
which/WDT
is/VBZ
used/VBN
in/IN
packaging/NN
and/CC
housewares/NNS
./.
Analysts/NNS
'/POS
third-quarter/JJ
estimates/NNS
for/IN
the/DT
Midland/NNP
,/,
Mich./NNP
,/,
company/NN
are/VBP
between/IN
$/$
3.20/CD
a/DT
share/NN
and/CC
$/$
3.30/CD
a/DT
share/NN
,/,
compared/VBN
with/IN
$/$
3.36/CD
a/DT
year/NN
ago/RB
,/,
when/WRB
profit/NN
was/VBD
$/$
632/CD
million/CD
on/IN
sales/NNS
of/IN
$/$
4.15/CD
billion/CD
./.
A/DT
Dow/NNP
spokeswoman/NN
declined/VBD
to/TO
comment/VB
on/IN
the/DT
estimates/NNS
./.
At/IN
the/DT
investment/NN
firm/NN
of/IN
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
&/CC
Co./NNP
,/,
the/DT
commodity-chemical/JJ
segment/NN
is/VBZ
seen/VBN
pulling/VBG
down/RP
overall/JJ
profit/NN
for/IN
20/CD
companies/NNS
representative/JJ
of/IN
the/DT
whole/JJ
industry/NN
by/IN
8/CD
%/NN
to/TO
10/CD
%/NN
./.
``/``
You/PRP
will/MD
find/VB
the/DT
commodities/NNS
off/RB
more/RBR
than/IN
the/DT
others/NNS
and/CC
the/DT
diversified/JJ
companies/NNS
about/RB
even/JJ
or/CC
slightly/RB
better/JJR
,/,
''/''
says/VBZ
James/NNP
Wilbur/NNP
,/,
a/DT
Smith/NNP
Barney/NNP
analyst/NN
./.
First/NNP
Boston/NNP
Corp./NNP
projects/VBZ
that/IN
10/CD
of/IN
the/DT
15/CD
companies/NNS
it/PRP
follows/VBZ
will/MD
report/VB
lower/JJR
profit/NN
./.
Most/JJS
of/IN
the/DT
10/CD
have/VBP
big/JJ
commodity-chemical/JJ
operations/NNS
./.
Still/RB
,/,
some/DT
industry/NN
giants/NNS
are/VBP
expected/VBN
to/TO
report/VB
continuing/JJ
gains/NNS
,/,
largely/RB
because/IN
so/RB
much/JJ
of/IN
their/PRP$
business/NN
is/VBZ
outside/IN
commodity/NN
chemicals/NNS
./.
Du/NNP
Pont/NNP
Co./NNP
is/VBZ
thought/VBN
to/TO
have/VB
had/VBD
steady/JJ
profit/NN
growth/NN
in/IN
white/JJ
pigments/NNS
,/,
fibers/NNS
and/CC
polymers/NNS
./.
Moreover/RB
,/,
the/DT
Wilmington/NNP
,/,
Del./NNP
,/,
company/NN
is/VBZ
helped/VBN
when/WRB
prices/NNS
weaken/VBP
on/IN
the/DT
commodity/NN
chemicals/NNS
it/PRP
buys/VBZ
for/IN
its/PRP$
own/JJ
production/NN
needs/NNS
,/,
such/JJ
as/IN
ethylene/NN
./.
Analysts/NNS
are/VBP
divided/VBN
over/IN
whether/IN
Du/NNP
Pont/NNP
will/MD
report/VB
much/JJ
of/IN
a/DT
gain/NN
in/IN
the/DT
latest/JJS
quarter/NN
from/IN
its/PRP$
Conoco/NNP
Inc./NNP
oil/NN
company/NN
./.
The/DT
estimates/NNS
for/IN
Du/NNP
Pont/NNP
range/NN
from/IN
$/$
2.25/CD
to/TO
$/$
2.45/CD
a/DT
share/NN
./.
In/IN
the/DT
1988/CD
third/JJ
quarter/NN
,/,
the/DT
company/NN
earned/VBD
$/$
461/CD
million/CD
,/,
or/CC
$/$
1.91/CD
a/DT
share/NN
,/,
on/IN
sales/NNS
of/IN
$/$
7.99/CD
billion/CD
./.
Du/NNP
Pont/NNP
declined/VBD
to/TO
comment/VB
./.
Monsanto/NNP
Co./NNP
,/,
too/RB
,/,
is/VBZ
expected/VBN
to/TO
continue/VB
reporting/VBG
higher/JJR
profit/NN
,/,
even/RB
though/IN
its/PRP$
sales/NNS
of/IN
crop/NN
chemicals/NNS
were/VBD
hurt/VBN
in/IN
the/DT
latest/JJS
quarter/NN
by/IN
drought/NN
in/IN
northern/JJ
Europe/NNP
and/CC
the/DT
western/JJ
U.S/NNP
./.
The/DT
St./NNP
Louis-based/JJ
company/NN
is/VBZ
expected/VBN
to/TO
report/VB
again/RB
that/IN
losses/NNS
in/IN
its/PRP$
G.D./NNP
Searle/NNP
&/CC
Co./NNP
pharmaceutical/JJ
business/NN
are/VBP
narrowing/VBG
./.
Searle/NNP
continued/VBD
to/TO
operate/VB
in/IN
the/DT
red/NN
through/IN
the/DT
first/JJ
half/NN
of/IN
the/DT
year/NN
,/,
but/CC
Monsanto/NNP
has/VBZ
said/VBD
it/PRP
expects/VBZ
Searle/NNP
to/TO
post/VB
a/DT
profit/NN
for/IN
all/DT
of/IN
1989/CD
./.
Most/JJS
estimates/NNS
for/IN
Monsanto/NNP
run/VBP
between/IN
$/$
1.70/CD
and/CC
$/$
2/CD
a/DT
share/NN
./.
A/DT
year/NN
ago/RB
,/,
the/DT
company/NN
posted/VBD
third-quarter/JJ
profit/NN
of/IN
$/$
116/CD
million/CD
,/,
or/CC
$/$
1.67/CD
a/DT
share/NN
,/,
on/IN
sales/NNS
of/IN
$/$
2.02/CD
billion/CD
./.
Monsanto/NNP
declined/VBD
to/TO
comment/VB
./.
But/CC
the/DT
commodity-chemical/JJ
producers/NNS
are/VBP
caught/VBN
on/IN
the/DT
downside/NN
of/IN
a/DT
pricing/NN
cycle/NN
./.
By/IN
some/DT
accounts/NNS
on/IN
Wall/NNP
Street/NNP
and/CC
in/IN
the/DT
industry/NN
,/,
the/DT
inventory/NN
reductions/NNS
are/VBP
near/IN
an/DT
end/NN
,/,
which/WDT
may/MD
presage/VB
firmer/JJR
demand/NN
./.
But/CC
doubters/NNS
say/VBP
growing/VBG
production/NN
capacity/NN
could/MD
keep/VB
pressure/NN
on/IN
prices/NNS
into/IN
the/DT
early/JJ
1990s/NNS
./.
In/IN
the/DT
latest/JJS
quarter/NN
,/,
at/IN
least/JJS
,/,
profit/NN
is/VBZ
expected/VBN
to/TO
fall/VB
sharply/RB
./.
For/IN
Himont/NNP
Inc./NNP
,/,
``/``
how/WRB
far/RB
down/RB
it/PRP
is/VBZ
,/,
we/PRP
do/VBP
n't/RB
know/VB
,/,
''/''
says/VBZ
Leslie/NNP
Ravitz/NNP
at/IN
Salomon/NNP
Brothers/NNP
./.
The/DT
projections/NNS
are/VBP
in/IN
the/DT
neighborhood/NN
of/IN
50/CD
cents/NNS
a/DT
share/NN
to/TO
75/CD
cents/NNS
,/,
compared/VBN
with/IN
a/DT
restated/JJ
$/$
1.65/CD
a/DT
share/NN
a/DT
year/NN
earlier/RBR
,/,
when/WRB
profit/NN
was/VBD
$/$
107.8/CD
million/CD
on/IN
sales/NNS
of/IN
$/$
435.5/CD
million/CD
./.
Himont/NNP
faces/VBZ
lower/JJR
prices/NNS
for/IN
its/PRP$
mainstay/NN
product/NN
,/,
polypropylene/NN
,/,
while/IN
it/PRP
goes/VBZ
forward/RB
with/IN
a/DT
heavy/JJ
capital/NN
investment/NN
program/NN
to/TO
bolster/VB
its/PRP$
raw/JJ
material/NN
supply/NN
and/CC
develop/VB
new/JJ
uses/NNS
for/IN
polypropylene/NN
,/,
whose/WP$
markets/NNS
include/VBP
the/DT
packaging/NN
and/CC
automobile/NN
industries/NNS
./.
The/DT
company/NN
,/,
based/VBN
in/IN
Wilmington/NNP
,/,
Del./NNP
,/,
is/VBZ
81%-owned/JJ
by/IN
Montedison/NNP
S.p/NNP
./.
A./NNP
,/,
Milan/NNP
,/,
which/WDT
has/VBZ
an/DT
offer/NN
outstanding/JJ
for/IN
the/DT
Himont/NNP
shares/NNS
it/PRP
does/VBZ
n't/RB
already/RB
own/VB
./.
At/IN
Quantum/NNP
Chemical/NNP
Corp./NNP
,/,
New/NNP
York/NNP
,/,
the/DT
trouble/NN
is/VBZ
lower/JJR
prices/NNS
for/IN
polyethylene/NN
,/,
higher/JJR
debt/NN
costs/NNS
and/CC
the/DT
idling/NN
of/IN
an/DT
important/JJ
plant/NN
due/RB
to/TO
an/DT
explosion/NN
./.
Some/DT
analysts/NNS
hedge/VBP
their/PRP$
estimates/NNS
for/IN
Quantum/NNP
,/,
because/IN
it/PRP
is/VBZ
n't/RB
known/VBN
when/WRB
the/DT
company/NN
will/MD
book/VB
certain/JJ
one-time/JJ
charges/NNS
./.
But/CC
the/DT
estimates/NNS
range/VBP
from/IN
break-even/JJ
to/TO
35/CD
cents/NNS
a/DT
share/NN
./.
In/IN
the/DT
1988/CD
third/JJ
quarter/NN
,/,
Quantum/NNP
earned/VBD
$/$
99.8/CD
million/CD
,/,
or/CC
$/$
3.92/CD
a/DT
share/NN
,/,
on/IN
sales/NNS
of/IN
$/$
724.4/CD
million/CD
./.
Another/DT
big/JJ
polyethylene/NN
producer/NN
,/,
Union/NNP
Carbide/NNP
Corp./NNP
,/,
is/VBZ
expected/VBN
to/TO
post/VB
profit/NN
of/IN
between/IN
$/$
1/CD
a/DT
share/NN
and/CC
$/$
1.25/CD
,/,
compared/VBN
with/IN
$/$
1.56/CD
a/DT
share/NN
a/DT
year/NN
earlier/RBR
,/,
when/WRB
the/DT
company/NN
earned/VBD
$/$
213/CD
million/CD
on/IN
sales/NNS
of/IN
$/$
2.11/CD
billion/CD
./.
Himont/NNP
,/,
Quantum/NNP
and/CC
Union/NNP
Carbide/NNP
all/DT
declined/VBD
to/TO
comment/VB
./.
The/DT
following/JJ
were/VBD
among/IN
Friday/NNP
's/POS
offerings/NNS
and/CC
pricings/NNS
in/IN
the/DT
U.S./NNP
and/CC
non-U.S./JJ
capital/NN
markets/NNS
,/,
with/IN
terms/NNS
and/CC
syndicate/NN
manager/NN
,/,
as/IN
compiled/VBN
by/IN
Dow/NNP
Jones/NNP
Capital/NNP
Markets/NNP
Report/NNP
:/:
Dow/NNP
Chemical/NNP
Co./NNP
--/:
$/$
150/CD
million/CD
of/IN
8.55/CD
%/NN
senior/JJ
notes/NNS
due/JJ
Oct./NNP
15/CD
,/,
2009/CD
,/,
priced/VBN
at/IN
par/NN
./.
The/DT
issue/NN
,/,
which/WDT
is/VBZ
puttable/JJ
back/RB
to/TO
the/DT
company/NN
at/IN
par/NN
on/IN
Oct./NNP
15/CD
,/,
1999/CD
,/,
was/VBD
priced/VBN
at/IN
a/DT
spread/NN
of/IN
50/CD
basis/NN
points/NNS
above/IN
the/DT
Treasury/NNP
's/POS
10-year/JJ
note/NN
./.
Rated/VBN
single-A-1/JJ
by/IN
Moody/NNP
's/POS
Investors/NNP
Service/NNP
Inc./NNP
and/CC
single-A/JJ
by/IN
Standard/NNP
&/CC
Poor/NNP
's/POS
Corp./NNP
,/,
the/DT
non-callable/JJ
issue/NN
will/MD
be/VB
sold/VBN
through/IN
underwriters/NNS
led/VBN
by/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNP
./.
Centel/NNP
Capital/NNP
Corp./NNP
--/:
$/$
150/CD
million/CD
of/IN
9/CD
%/NN
debentures/NNS
due/JJ
Oct./NNP
15/CD
,/,
2019/CD
,/,
priced/VBN
at/IN
99.943/CD
to/TO
yield/VB
9.008/CD
%/NN
./.
The/DT
non-callable/JJ
issue/NN
,/,
which/WDT
can/MD
be/VB
put/VBN
back/RB
to/TO
the/DT
company/NN
in/IN
1999/CD
,/,
was/VBD
priced/VBN
at/IN
99/CD
basis/NN
points/NNS
above/IN
the/DT
Treasury/NNP
's/POS
10-year/JJ
note/NN
./.
Rated/VBN
Baa-1/JJ
by/IN
Moody/NNP
's/POS
and/CC
triple-B-plus/JJ
by/IN
S&P/NNP
,/,
the/DT
issue/NN
will/MD
be/VB
sold/VBN
through/IN
underwriters/NNS
led/VBN
by/IN
Morgan/NNP
Stanley/NNP
&/CC
Co/NNP
./.
Federal/NNP
Home/NNP
Loan/NNP
Mortgage/NNP
Corp./NNP
--/:
$/$
500/CD
million/CD
of/IN
Remic/NNP
mortgage/NN
securities/NNS
offered/VBN
in/IN
13/CD
classes/NNS
by/IN
Prudential-Bache/NNP
Securities/NNP
Inc/NNP
./.
The/DT
offering/NN
,/,
Series/NNP
102/CD
,/,
backed/VBN
by/IN
Freddie/NNP
Mac/NNP
8/CD
1\/2/CD
%/NN
securities/NNS
with/IN
a/DT
weighted/JJ
average/NN
remaining/VBG
term/NN
to/TO
maturity/NN
of/IN
28.4/CD
years/NNS
,/,
was/VBD
priced/VBN
before/IN
the/DT
market/NN
's/POS
afternoon/NN
surge/NN
./.
Among/IN
classes/NNS
for/IN
which/WDT
details/NNS
were/VBD
available/JJ
,/,
yields/NNS
ranged/VBD
from/IN
8.78/CD
%/NN
,/,
or/CC
75/CD
basis/NN
points/NNS
over/IN
two-year/JJ
Treasury/NNP
securities/NNS
,/,
to/TO
10.05/CD
%/NN
,/,
or/CC
200/CD
basis/NN
points/NNS
over/IN
10-year/JJ
Treasurys/NNPS
./.
Federal/NNP
Home/NNP
Loan/NNP
Mortgage/NNP
Corp./NNP
--/:
$/$
300/CD
million/CD
of/IN
Remic/NNP
mortgage/NN
securities/NNS
offered/VBN
by/IN
Citicorp/NNP
Securities/NNP
Markets/NNP
Inc/NNP
./.
The/DT
offering/NN
,/,
Series/NNP
101/CD
,/,
is/VBZ
backed/VBN
by/IN
Freddie/NNP
Mac/NNP
9/CD
1\/2/CD
%/NN
securities/NNS
./.
Pricing/NN
details/NNS
were/VBD
n't/RB
immediately/RB
available/JJ
./.
Federal/NNP
Home/NNP
Loan/NNP
Mortgage/NNP
Corp./NNP
--/:
$/$
200/CD
million/CD
of/IN
stripped/JJ
mortgage/NN
securities/NNS
underwritten/VBN
by/IN
BT/NNP
Securities/NNP
Corp/NNP
./.
The/DT
agency/NN
's/POS
first/JJ
strips/NNS
issue/NN
,/,
collateralized/VBN
by/IN
Freddie/NNP
Mac/NNP
8/CD
%/NN
securities/NNS
pooled/VBN
into/IN
a/DT
single/JJ
security/NN
called/VBN
a/DT
Giant/NNP
,/,
will/MD
be/VB
divided/VBN
into/IN
interest-only/JJ
and/CC
principal-only/JJ
securities/NNS
./.
The/DT
collateral/NN
is/VBZ
being/VBG
sold/VBN
by/IN
a/DT
thrift/NN
institution/NN
./.
The/DT
principal-only/JJ
securities/NNS
will/MD
be/VB
repackaged/VBN
by/IN
BT/NNP
Securities/NNP
into/IN
a/DT
Freddie/NNP
Mac/NNP
Remic/NNP
,/,
Series/NNP
103/CD
,/,
that/WDT
will/MD
have/VB
six/CD
classes/NNS
./.
The/DT
interest-only/JJ
securities/NNS
will/MD
be/VB
sold/VBN
separately/RB
by/IN
BT/NNP
Securities/NNP
./.
The/DT
principal-only/JJ
securities/NNS
pay/VBP
the/DT
principal/NN
from/IN
the/DT
underlying/JJ
Freddie/NNP
Mac/NNP
8/CD
%/NN
securities/NNS
,/,
while/IN
the/DT
interest-only/JJ
securities/NNS
pay/VBP
only/JJ
interest/NN
./.
Freddie/NNP
Mac/NNP
said/VBD
the/DT
principal-only/JJ
securities/NNS
were/VBD
priced/VBN
at/IN
58/CD
1\/4/CD
to/TO
yield/VB
8.45/CD
%/NN
,/,
assuming/VBG
an/DT
average/JJ
life/NN
of/IN
eight/CD
years/NNS
and/CC
a/DT
prepayment/NN
of/IN
160/CD
%/NN
of/IN
the/DT
PSA/NNP
model/NN
./.
The/DT
interest-only/JJ
securities/NNS
were/VBD
priced/VBN
at/IN
35/CD
1\/2/CD
to/TO
yield/VB
10.72/CD
%/NN
./.
There/EX
were/VBD
no/DT
major/JJ
Eurobond/NNP
or/CC
foreign/JJ
bond/NN
offerings/NNS
in/IN
Europe/NNP
Friday/NNP
./.
The/DT
economy/NN
's/POS
temperature/NN
will/MD
be/VB
taken/VBN
from/IN
several/JJ
vantage/NN
points/NNS
this/DT
week/NN
,/,
with/IN
readings/NNS
on/IN
trade/NN
,/,
output/NN
,/,
housing/NN
and/CC
inflation/NN
./.
The/DT
most/RBS
troublesome/JJ
report/NN
may/MD
be/VB
the/DT
August/NNP
merchandise/NN
trade/NN
deficit/NN
due/JJ
out/IN
tomorrow/NN
./.
The/DT
trade/NN
gap/NN
is/VBZ
expected/VBN
to/TO
widen/VB
to/TO
about/IN
$/$
9/CD
billion/CD
from/IN
July/NNP
's/POS
$/$
7.6/CD
billion/CD
,/,
according/VBG
to/TO
a/DT
survey/NN
by/IN
MMS/NNP
International/NNP
,/,
a/DT
unit/NN
of/IN
McGraw-Hill/NNP
Inc./NNP
,/,
New/NNP
York/NNP
./.
Thursday/NNP
's/POS
report/NN
on/IN
the/DT
September/NNP
consumer/NN
price/NN
index/NN
is/VBZ
expected/VBN
to/TO
rise/VB
,/,
although/IN
not/RB
as/RB
sharply/RB
as/IN
the/DT
0.9/CD
%/NN
gain/NN
reported/VBN
Friday/NNP
in/IN
the/DT
producer/NN
price/NN
index/NN
./.
That/DT
gain/NN
was/VBD
being/VBG
cited/VBD
as/IN
a/DT
reason/NN
the/DT
stock/NN
market/NN
was/VBD
down/IN
early/RB
in/IN
Friday/NNP
's/POS
session/NN
,/,
before/IN
it/PRP
got/VBD
started/VBN
on/IN
its/PRP$
reckless/JJ
190-point/JJ
plunge/NN
./.
Economists/NNS
are/VBP
divided/VBN
as/IN
to/TO
how/WRB
much/JJ
manufacturing/VBG
strength/NN
they/PRP
expect/VBP
to/TO
see/VB
in/IN
September/NNP
reports/NNS
on/IN
industrial/JJ
production/NN
and/CC
capacity/NN
utilization/NN
,/,
also/RB
due/JJ
tomorrow/NN
./.
Meanwhile/RB
,/,
September/NNP
housing/NN
starts/NNS
,/,
due/JJ
Wednesday/NNP
,/,
are/VBP
thought/VBN
to/TO
have/VB
inched/VBN
upward/RB
./.
``/``
There/EX
's/VBZ
a/DT
possibility/NN
of/IN
a/DT
surprise/NN
''/''
in/IN
the/DT
trade/NN
report/NN
,/,
said/VBD
Michael/NNP
Englund/NNP
,/,
director/NN
of/IN
research/NN
at/IN
MMS/NNP
./.
A/DT
widening/NN
of/IN
the/DT
deficit/NN
,/,
if/IN
it/PRP
were/VBD
combined/VBN
with/IN
a/DT
stubbornly/RB
strong/JJ
dollar/NN
,/,
would/MD
exacerbate/VB
trade/NN
problems/NNS
--/:
but/CC
the/DT
dollar/NN
weakened/VBD
Friday/NNP
as/IN
stocks/NNS
plummeted/VBD
./.
In/IN
any/DT
event/NN
,/,
Mr./NNP
Englund/NNP
and/CC
many/JJ
others/NNS
say/VBP
that/IN
the/DT
easy/JJ
gains/NNS
in/IN
narrowing/VBG
the/DT
trade/NN
gap/NN
have/VBP
already/RB
been/VBN
made/VBN
./.
``/``
Trade/NN
is/VBZ
definitely/RB
going/VBG
to/TO
be/VB
more/RBR
politically/RB
sensitive/JJ
over/IN
the/DT
next/JJ
six/CD
or/CC
seven/CD
months/NNS
as/IN
improvement/NN
begins/VBZ
to/TO
slow/VB
,/,
''/''
he/PRP
said/VBD
./.
Exports/NNS
are/VBP
thought/VBN
to/TO
have/VB
risen/VBN
strongly/RB
in/IN
August/NNP
,/,
but/CC
probably/RB
not/RB
enough/RB
to/TO
offset/VB
the/DT
jump/NN
in/IN
imports/NNS
,/,
economists/NNS
said/VBD
./.
Views/NNS
on/IN
manufacturing/VBG
strength/NN
are/VBP
split/VBN
between/IN
economists/NNS
who/WP
read/VBP
September/NNP
's/POS
low/JJ
level/NN
of/IN
factory/NN
job/NN
growth/NN
as/IN
a/DT
sign/NN
of/IN
a/DT
slowdown/NN
and/CC
those/DT
who/WP
use/VBP
the/DT
somewhat/RB
more/JJR
comforting/VBG
total/JJ
employment/NN
figures/NNS
in/IN
their/PRP$
calculations/NNS
./.
The/DT
wide/JJ
range/NN
of/IN
estimates/NNS
for/IN
the/DT
industrial/JJ
output/NN
number/NN
underscores/VBZ
the/DT
differences/NNS
:/:
The/DT
forecasts/NNS
run/VBD
from/IN
a/DT
drop/NN
of/IN
0.5/CD
%/NN
to/TO
an/DT
increase/NN
of/IN
0.4/CD
%/NN
,/,
according/VBG
to/TO
MMS/NNP
./.
A/DT
rebound/NN
in/IN
energy/NN
prices/NNS
,/,
which/WDT
helped/VBD
push/VB
up/IN
the/DT
producer/NN
price/NN
index/NN
,/,
is/VBZ
expected/VBN
to/TO
do/VB
the/DT
same/JJ
in/IN
the/DT
consumer/NN
price/NN
report/NN
./.
The/DT
consensus/NN
view/NN
expects/VBZ
a/DT
0.4/CD
%/NN
increase/NN
in/IN
the/DT
September/NNP
CPI/NNP
after/IN
a/DT
flat/JJ
reading/NN
in/IN
August/NNP
./.
Robert/NNP
H./NNP
Chandross/NNP
,/,
an/DT
economist/NN
for/IN
Lloyd/NNP
's/POS
Bank/NNP
in/IN
New/NNP
York/NNP
,/,
is/VBZ
among/IN
those/DT
expecting/VBG
a/DT
more/RBR
moderate/JJ
gain/NN
in/IN
the/DT
CPI/NNP
than/IN
in/IN
prices/NNS
at/IN
the/DT
producer/NN
level/NN
./.
``/``
Auto/NN
prices/NNS
had/VBD
a/DT
big/JJ
effect/NN
in/IN
the/DT
PPI/NNP
,/,
and/CC
at/IN
the/DT
CPI/NNP
level/NN
they/PRP
wo/MD
n't/RB
,/,
''/''
he/PRP
said/VBD
./.
Food/NN
prices/NNS
are/VBP
expected/VBN
to/TO
be/VB
unchanged/JJ
,/,
but/CC
energy/NN
costs/NNS
jumped/VBD
as/RB
much/RB
as/IN
4/CD
%/NN
,/,
said/VBD
Gary/NNP
Ciminero/NNP
,/,
economist/NN
at/IN
Fleet\/Norstar/NNP
Financial/NNP
Group/NNP
./.
He/PRP
also/RB
says/VBZ
he/PRP
thinks/VBZ
``/``
core/NN
inflation/NN
,/,
''/''
which/WDT
excludes/VBZ
the/DT
volatile/JJ
food/NN
and/CC
energy/NN
prices/NNS
,/,
was/VBD
strong/JJ
last/JJ
month/NN
./.
He/PRP
expects/VBZ
a/DT
gain/NN
of/IN
as/RB
much/JJ
as/IN
0.5/CD
%/NN
in/IN
core/NN
inflation/NN
after/IN
a/DT
summer/NN
of/IN
far/JJ
smaller/JJR
increases/NNS
./.
Housing/NN
starts/NNS
are/VBP
expected/VBN
to/TO
quicken/VB
a/DT
bit/NN
from/IN
August/NNP
's/POS
annual/JJ
pace/NN
of/IN
1,350,000/CD
units/NNS
./.
Economists/NNS
say/VBP
an/DT
August/NNP
rebound/NN
in/IN
permits/NNS
for/IN
multifamily/RB
units/NNS
signaled/VBD
an/DT
increase/NN
in/IN
September/NNP
starts/NNS
,/,
though/IN
activity/NN
remains/VBZ
fairly/RB
modest/JJ
by/IN
historical/JJ
standards/NNS
./.
Two-Way/NNP
Street/NNP
If/IN
the/DT
sixty-day/JJ
plant-closing/JJ
law/NN
's/VBZ
fair/JJ
,/,
Why/WRB
should/MD
we/PRP
not/RB
then/RB
amend/VB
the/DT
writ/NN
To/TO
require/VB
that/IN
all/DT
employees/NNS
give/VBP
Similar/JJ
notice/NN
before/IN
they/PRP
quit/VBP
?/.
--/:
Rollin/NNP
S./NNP
Trexler/NNP
./.
Candid/NNP
Comment/NNP
When/WRB
research/NN
projects/NNS
are/VBP
curtailed/VBN
due/JJ
to/TO
government/NN
funding/NN
cuts/NNS
,/,
are/VBP
we/PRP
``/``
caught/VBN
with/IN
our/PRP$
grants/NNS
down/IN
''/''
?/.
--/:
C.E./NNP
Friedman/NNP
./.
Assuming/VBG
the/DT
stock/NN
market/NN
does/VBZ
n't/RB
crash/VB
again/RB
and/CC
completely/RB
discredit/VB
yuppies/NNS
and/CC
trading/NN
rooms/NNS
,/,
American/JJ
television/NN
audiences/NNS
in/IN
a/DT
few/JJ
months/NNS
may/MD
be/VB
seeing/VBG
Britain/NNP
's/POS
concept/NN
of/IN
both/DT
./.
``/``
Capital/NNP
City/NNP
''/''
is/VBZ
a/DT
weekly/JJ
series/NN
that/WDT
premiered/VBD
here/RB
three/CD
weeks/NNS
ago/IN
amid/IN
unprecedented/JJ
hype/NN
by/IN
its/PRP$
producer/NN
,/,
Thames/NNP
Television/NNP
./.
The/DT
early/JJ
episodes/NNS
make/VBP
you/PRP
long/JJ
for/IN
a/DT
rerun/NN
of/IN
the/DT
crash/NN
of/IN
1987/CD
./.
Let/VB
's/PRP
make/VB
that/DT
1929/CD
,/,
just/RB
to/TO
be/VB
sure/JJ
./.
According/VBG
to/TO
the/DT
program/NN
's/POS
publicity/NN
prospectus/NN
,/,
``/``
Capital/NNP
City/NNP
,/,
''/''
set/VBN
at/IN
Shane/NNP
Longman/NNP
,/,
a/DT
fictional/JJ
mid-sized/JJ
securities/NNS
firm/JJ
with/IN
#/#
500/CD
million/CD
capital/NN
,/,
``/``
follows/VBZ
the/DT
fortunes/NNS
of/IN
a/DT
close-knit/JJ
team/NN
of/IN
young/JJ
,/,
high-flying/JJ
dealers/NNS
,/,
hired/VBN
for/IN
their/PRP$
particular/JJ
blend/NN
of/IN
style/NN
,/,
genius/NN
and/CC
energy/NN
./.
But/CC
with/IN
all/PDT
the/DT
money/NN
and/CC
glamour/NN
of/IN
high/JJ
finance/NN
come/VBP
the/DT
relentless/JJ
pressures/NNS
to/TO
do/VB
well/RB
;/:
pressure/NN
to/TO
pull/VB
off/IN
another/DT
million/CD
before/IN
lunch/NN
;/:
pressure/NN
to/TO
anticipate/VB
the/DT
market/NN
by/IN
a/DT
fraction/NN
of/IN
a/DT
second/NN
.../:
''/''
You/PRP
need/MD
n't/RB
be/VB
a/DT
high-powered/JJ
securities/NNS
lawyer/NN
to/TO
realize/VB
the/DT
prospectus/NN
is/VBZ
guilty/JJ
of/IN
less/RBR
than/IN
full/JJ
disclosure/NN
./.
The/DT
slickly/RB
produced/VBD
series/NN
has/VBZ
been/VBN
criticized/VBN
by/IN
London/NNP
's/POS
financial/JJ
cognoscenti/NNS
as/IN
inaccurate/JJ
in/IN
detail/NN
,/,
but/CC
its/PRP$
major/JJ
weakness/NN
is/VBZ
its/PRP$
unrealistic/JJ
depiction/NN
of/IN
the/DT
characters/NNS
'/POS
professional/JJ
and/CC
private/JJ
lives/NNS
./.
Turned/VBN
loose/RB
in/IN
Shane/NNP
Longman/NNP
's/POS
trading/NN
room/NN
,/,
the/DT
yuppie/NN
dealers/NNS
do/VBP
little/RB
right/RB
./.
Judging/VBG
by/IN
the/DT
money/NN
lost/VBN
and/CC
mistakes/NNS
made/VBN
in/IN
the/DT
early/JJ
episodes/NNS
,/,
Shane/NNP
Longman/NNP
's/POS
capital/NN
should/MD
be/VB
just/RB
about/IN
exhausted/VBN
by/IN
the/DT
final/JJ
13th/JJ
week/NN
./.
In/IN
the/DT
opening/VBG
episode/NN
we/PRP
learn/VBP
that/IN
Michelle/NNP
,/,
a/DT
junior/JJ
bond/NN
trader/NN
,/,
has/VBZ
indeed/RB
pulled/VBN
off/IN
another/DT
million/CD
before/IN
lunch/NN
./.
Trouble/NN
is/VBZ
,/,
she/PRP
has/VBZ
lost/VBN
it/PRP
just/RB
as/RB
quickly/RB
./.
Rather/RB
than/IN
keep/VB
the/DT
loss/NN
a/DT
secret/NN
from/IN
the/DT
outside/JJ
world/NN
,/,
Michelle/NNP
blabs/VBZ
about/IN
it/PRP
to/TO
a/DT
sandwich/NN
man/NN
while/IN
ordering/VBG
lunch/NN
over/IN
the/DT
phone/NN
./.
Little/JJ
chance/NN
that/IN
Shane/NNP
Longman/NNP
is/VBZ
going/VBG
to/TO
recoup/VB
today/NN
./.
Traders/NNS
spend/VBP
the/DT
morning/NN
frantically/RB
selling/VBG
bonds/NNS
,/,
in/IN
the/DT
belief/NN
that/IN
the/DT
U.S./NNP
monthly/JJ
trade/NN
figures/NNS
will/MD
look/VB
lousy/JJ
./.
Ah/UH
,/,
perfidious/JJ
Columbia/NNP
The/DT
trade/NN
figures/NNS
turn/VBP
out/IN
well/RB
,/,
and/CC
all/PDT
those/DT
recently/RB
unloaded/VBN
bonds/NNS
spurt/VBP
in/IN
price/NN
./.
So/RB
much/RB
for/IN
anticipating/VBG
the/DT
market/NN
by/IN
a/DT
fraction/NN
of/IN
a/DT
second/NN
./.
And/CC
a/DT
large/JJ
slice/NN
of/IN
the/DT
first/JJ
episode/NN
is/VBZ
devoted/VBN
to/TO
efforts/NNS
to/TO
get/VB
rid/JJ
of/IN
some/DT
nearly/RB
worthless/JJ
Japanese/JJ
bonds/NNS
anything/NN
Japanese/JJ
nearly/RB
worthless/JJ
nowadays/RB
?/.
Surprisingly/RB
,/,
Shane/NNP
Longman/NNP
survives/VBZ
the/DT
week/NN
,/,
only/RB
to/TO
have/VB
a/DT
senior/JJ
executive/NN
innocently/RB
bumble/VB
his/PRP$
way/NN
into/IN
becoming/VBG
the/DT
target/NN
of/IN
a/DT
criminal/JJ
insider/NN
trading/NN
investigation/NN
./.
Instead/RB
of/IN
closing/VBG
ranks/NNS
to/TO
protect/VB
the/DT
firm/NN
's/POS
reputation/NN
,/,
the/DT
executive/NN
's/POS
internal/JJ
rivals/NNS
,/,
led/VBN
by/IN
a/DT
loutish/JJ
American/NNP
,/,
demand/VBP
his/PRP$
resignation/NN
./.
The/DT
plot/NN
is/VBZ
thwarted/VBN
when/WRB
the/DT
firm/NN
's/POS
major/JJ
stockholder/NN
,/,
kelp/NN
farming/NN
on/IN
the/DT
other/JJ
side/NN
of/IN
the/DT
globe/NN
,/,
hurries/VBZ
home/RB
to/TO
support/VB
the/DT
executive/NN
./.
But/CC
the/DT
investigation/NN
continues/VBZ
./.
If/IN
you/PRP
can/MD
swallow/VB
the/DT
premise/NN
that/IN
the/DT
rewards/NNS
for/IN
such/JJ
ineptitude/NN
are/VBP
six-figure/JJ
salaries/NNS
,/,
you/PRP
still/RB
are/VBP
left/VBN
puzzled/VBN
,/,
because/IN
few/JJ
of/IN
the/DT
yuppies/NNS
consume/VBP
very/RB
conspicuously/RB
./.
In/IN
fact/NN
,/,
few/JJ
consume/VBP
much/RB
of/IN
anything/NN
./.
Two/CD
share/NN
a/DT
house/NN
almost/RB
devoid/JJ
of/IN
furniture/NN
./.
Michelle/NNP
lives/VBZ
in/IN
a/DT
hotel/NN
room/NN
,/,
and/CC
although/IN
she/PRP
drives/VBZ
a/DT
canary-colored/JJ
Porsche/NNP
,/,
she/PRP
has/VBZ
n't/RB
time/NN
to/TO
clean/VB
or/CC
repair/VB
it/PRP
;/:
the/DT
beat-up/JJ
vehicle/NN
can/MD
be/VB
started/VBN
only/RB
with/IN
a/DT
huge/JJ
pair/NN
of/IN
pliers/NNS
because/IN
the/DT
ignition/NN
key/NN
has/VBZ
broken/VBN
off/IN
in/IN
the/DT
lock/NN
./.
And/CC
it/PRP
takes/VBZ
Declan/NNP
,/,
the/DT
obligatory/JJ
ladies/NNS
'/POS
man/NN
of/IN
the/DT
cast/NN
,/,
until/IN
the/DT
third/JJ
episode/NN
to/TO
get/VB
past/IN
first/JJ
base/NN
with/IN
any/DT
of/IN
his/PRP$
prey/NN
./.
Perhaps/RB
the/DT
explanation/NN
for/IN
these/DT
anomalies/NNS
is/VBZ
that/IN
class-conscious/JJ
Britain/NNP
is/VBZ
n't/RB
ready/JJ
to/TO
come/VB
to/TO
terms/NNS
with/IN
the/DT
wealth/NN
created/VBN
by/IN
the/DT
Thatcherian/JJ
free-enterprise/NN
regime/NN
./.
After/IN
all/DT
,/,
this/DT
is/VBZ
n't/RB
old/JJ
money/NN
,/,
but/CC
new/JJ
money/NN
,/,
and/CC
in/IN
many/JJ
cases/NNS
,/,
young/JJ
money/NN
./.
This/DT
attitude/NN
is/VBZ
clearly/RB
illustrated/VBN
in/IN
the/DT
treatment/NN
of/IN
Max/NNP
,/,
the/DT
trading/NN
room/NN
's/POS
most/RBS
flamboyant/JJ
character/NN
./.
Yuppily/RB
enough/RB
,/,
he/PRP
lives/VBZ
in/IN
a/DT
lavishly/RB
furnished/VBN
converted/VBN
church/NN
,/,
wears/VBZ
designer/NN
clothes/NNS
and/CC
drives/VBZ
an/DT
antique/JJ
car/NN
./.
But/CC
apparently/RB
to/TO
make/VB
him/PRP
palatable/JJ
,/,
even/RB
lovable/JJ
,/,
to/TO
the/DT
masses/NNS
,/,
the/DT
script/NN
inflates/VBZ
pony-tailed/JJ
Max/NNP
into/IN
an/DT
eccentric/JJ
genius/NN
,/,
master/NN
of/IN
11/CD
Chinese/JJ
dialects/NNS
./.
He/PRP
takes/VBZ
his/PRP$
wash/NN
to/TO
the/DT
laundromat/NN
,/,
where/WRB
he/PRP
meets/VBZ
a/DT
punky/JJ
French/JJ
girl/NN
who/WP
dupes/VBZ
him/PRP
into/IN
providing/VBG
a/DT
home/NN
for/IN
her/PRP$
pet/NN
piranha/NN
and/CC
then/RB
promptly/RB
steals/VBZ
his/PRP$
car/NN
and/CC
dumps/VBZ
it/PRP
in/IN
Dieppe/NNP
./.
In/IN
producing/VBG
and/CC
promoting/VBG
``/``
Capital/NNP
City/NNP
,/,
''/''
Thames/NNP
has/VBZ
spent/VBN
about/IN
as/RB
much/JJ
as/IN
Shane/NNP
Longman/NNP
loses/VBZ
on/IN
a/DT
good/JJ
day/NN
./.
The/DT
production/NN
costs/NNS
are/VBP
a/DT
not/RB
inconsiderable/JJ
#/#
8/CD
million/CD
$/$
12.4/CD
million/CD
the/DT
cost/NN
of/IN
the/DT
trading/NN
floor/NN
set/NN
been/VBN
absorbed/VBN
in/IN
the/DT
budget/NN
of/IN
``/``
Dealers/NNS
,/,
''/''
an/DT
earlier/JJR
made-for-TV/JJ
movie/NN
./.
Another/DT
half/DT
million/CD
quid/NN
went/VBD
for/IN
a/DT
volley/NN
of/IN
full-page/JJ
advertisements/NNS
in/IN
six/CD
major/JJ
British/JJ
newspapers/NNS
and/CC
for/IN
huge/JJ
posters/NNS
in/IN
the/DT
London/JJ
subway/NN
./.
These/DT
expenses/NNS
create/VBP
a/DT
special/JJ
incentive/NN
for/IN
``/``
Capital/NNP
City/NNP
's/POS
''/''
producers/NNS
to/TO
flog/VB
it/PRP
,/,
or/CC
a/DT
Yank-oriented/JJ
version/NN
of/IN
it/PRP
,/,
in/IN
America/NNP
./.
Thames/NNP
's/POS
U.S./NNP
marketing/NN
agent/NN
,/,
Donald/NNP
Taffner/NNP
,/,
is/VBZ
preparing/VBG
to/TO
do/VB
just/RB
that/DT
./.
He/PRP
is/VBZ
discreetly/RB
hopeful/JJ
,/,
citing/VBG
three/CD
U.S./NNP
comedy/NN
series/NN
--/:
``/``
Three/NNP
's/POS
Company/NNP
,/,
''/''
``/``
Too/NNP
Close/NNP
for/IN
Comfort/NNP
''/''
and/CC
``/``
Check/NNP
It/NNP
Out/NNP
''/''
--/:
that/WDT
had/VBD
British/JJ
antecedents/NNS
./.
Perhaps/RB
without/IN
realizing/VBG
it/PRP
,/,
Mr./NNP
Taffner/NNP
simultaneously/RB
has/VBZ
put/VBN
his/PRP$
finger/NN
on/IN
the/DT
problem/NN
and/CC
an/DT
ideal/JJ
solution/NN
:/:
``/``
Capital/NNP
City/NNP
''/''
should/MD
have/VB
been/VBN
a/DT
comedy/NN
,/,
a/DT
worthy/JJ
sequel/NN
to/TO
the/DT
screwball/JJ
British/JJ
``/``
Carry/NNP
On/NNP
''/''
movies/NNS
of/IN
the/DT
1960s/CD
./.
The/DT
seeds/NNS
already/RB
are/VBP
in/IN
the/DT
script/NN
./.
The/DT
first/JJ
episode/NN
concluded/VBD
with/IN
a/DT
marvelously/RB
cute/JJ
scene/NN
in/IN
which/WDT
the/DT
trading-room/NN
crew/NN
minded/VBD
a/DT
baby/NN
,/,
the/DT
casualty/NN
of/IN
a/DT
broken/VBN
marriage/NN
at/IN
the/DT
firm/NN
./.
And/CC
many/JJ
in/IN
the/DT
young/JJ
cast/NN
bear/VBP
striking/JJ
resemblances/NNS
to/TO
American/JJ
TV/NN
and/CC
movie/NN
personalities/NNS
known/VBN
for/IN
light/JJ
roles/NNS
./.
Joanna/NNP
Kanska/NNP
looks/VBZ
like/IN
a/DT
young/JJ
Zsa/NNP
Zsa/NNP
Gabor/NNP
;/:
William/NNP
Armstrong/NNP
,/,
who/WP
plays/VBZ
Max/NNP
,/,
could/MD
pass/VB
for/IN
Hans/NNP
Conreid/NNP
,/,
and/CC
Douglas/NNP
Hodge/NNP
Declan/NNP
James/NNP
Farentino/NNP
;/:
Rolf/NNP
Saxon/NNP
is/VBZ
a/DT
passable/JJ
Tommy/NNP
Noonan/NNP
and/CC
Dorian/NNP
Healy/NNP
could/MD
easily/RB
double/VB
for/IN
Huntz/NNP
Hall/NNP
,/,
the/DT
blank-faced/JJ
foil/NN
of/IN
the/DT
Bowery/NNP
Boys/NNPS
comedies/NNS
./.
So/RB
,/,
OK/UH
kids/NNS
,/,
everybody/NN
on/IN
stage/NN
for/IN
``/``
Carry/NNP
On/NNP
Trading/NNP
''/''
:/:
The/DT
cast/NN
is/VBZ
frantically/RB
searching/VBG
the/DT
office/NN
for/IN
misplaced/VBN
Japanese/JJ
bonds/NNS
that/WDT
suddenly/RB
have/VBP
soared/VBN
in/IN
value/NN
because/IN
Dai-Ichi/NNP
Kangyo/NNP
Bank/NNP
has/VBZ
just/RB
bought/VBN
the/DT
White/NNP
House/NNP
./.
The/DT
pressure/NN
is/VBZ
too/RB
much/RB
for/IN
Zsa/NNP
Zsa/NNP
,/,
who/WP
slaps/VBZ
a/DT
security/NN
guard/NN
./.
He/PRP
backflips/VBZ
into/IN
a/DT
desktop/NN
computer/NN
terminal/NN
,/,
which/WDT
explodes/VBZ
,/,
covering/VBG
Huntz/NNP
Hall/NNP
's/POS
face/NN
with/IN
microchips/NNS
./.
And/CC
all/PDT
the/DT
while/NN
,/,
the/DT
bonds/NNS
are/VBP
in/IN
the/DT
baby/NN
's/POS
diaper/NN
./.
It/PRP
should/MD
run/VB
forever/RB
./.
Mr./NNP
Rustin/NNP
is/VBZ
senior/JJ
correspondent/NN
in/IN
the/DT
Journal/NNP
's/POS
London/NNP
bureau/NN
./.
Axa-Midi/NNP
Assurances/NNPS
of/IN
France/NNP
gave/VBD
details/NNS
of/IN
its/PRP$
financing/VBG
plans/NNS
for/IN
its/PRP$
proposed/VBN
$/$
4.5/CD
billion/CD
acquisition/NN
of/IN
Farmers/NNPS
Group/NNP
Inc./NNP
,/,
in/IN
amended/VBN
filings/NNS
with/IN
insurance/NN
regulators/NNS
in/IN
the/DT
nine/CD
U.S./NNP
states/NNS
where/WRB
Farmers/NNP
operates/VBZ
./.
The/DT
proposed/VBN
acquisition/NN
is/VBZ
part/NN
of/IN
Sir/NNP
James/NNP
Goldsmith/NNP
's/POS
unfriendly/JJ
takeover/NN
attempt/NN
for/IN
B.A.T/NNP
Industries/NNPS
PLC/NNP
,/,
the/DT
British/JJ
tobacco/NN
,/,
retailing/NN
,/,
paper/NN
and/CC
financial/JJ
services/NNS
concern/NN
that/WDT
is/VBZ
parent/NN
of/IN
Los/NNP
Angeles-based/JJ
Farmers/NNPS
./.
In/IN
an/DT
attempt/NN
to/TO
appease/VB
U.S./NNP
regulators/NNS
'/POS
concern/NN
over/IN
a/DT
Goldsmith/NNP
acquisition/NN
of/IN
Farmers/NNPS
,/,
Sir/NNP
James/NNP
in/IN
August/NNP
agreed/VBD
to/TO
sell/VB
Farmers/NNPS
to/TO
Axa/NNP
if/IN
he/PRP
is/VBZ
successful/JJ
in/IN
acquiring/VBG
B.A.T/NNP
./.
As/IN
part/NN
of/IN
the/DT
agreement/NN
,/,
Axa/NNP
agreed/VBD
to/TO
invest/VB
$/$
1/CD
billion/CD
in/IN
Hoylake/NNP
Investments/NNPS
Ltd./NNP
,/,
Sir/NNP
James/NNP
's/POS
acquisition/NN
vehicle/NN
./.
Of/IN
the/DT
total/JJ
$/$
5.5/CD
billion/CD
to/TO
be/VB
paid/VBN
to/TO
Hoylake/NNP
by/IN
Axa/NNP
,/,
about/IN
$/$
1/CD
billion/CD
will/MD
come/VB
from/IN
available/JJ
resources/NNS
of/IN
Axa/NNP
's/POS
parent/NN
,/,
Axa-Midi/NNP
Group/NNP
,/,
$/$
2.25/CD
billion/CD
will/MD
be/VB
in/IN
the/DT
form/NN
of/IN
notes/NNS
issued/VBN
by/IN
Axa/NNP
,/,
and/CC
the/DT
remaining/VBG
$/$
2.25/CD
billion/CD
will/MD
be/VB
in/IN
long-term/JJ
bank/NN
loans/NNS
./.
In/IN
an/DT
interview/NN
Thursday/NNP
,/,
Claude/NNP
Bebear/NNP
,/,
chairman/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
Axa/NNP
,/,
said/VBD
his/PRP$
group/NN
has/VBZ
already/RB
obtained/VBN
assurances/NNS
from/IN
a/DT
group/NN
of/IN
banks/NNS
led/VBN
by/IN
Cie/NNP
./.
Financiere/NNP
de/NNP
Paribas/NNP
that/IN
they/PRP
can/MD
provide/VB
the/DT
loan/NN
portion/NN
of/IN
the/DT
financing/NN
./.
The/DT
other/JJ
banking/VBG
companies/NNS
in/IN
the/DT
group/NN
are/VBP
Credit/NNP
Lyonnais/NNP
,/,
Societe/NNP
Generale/NNP
,/,
BankAmerica/NNP
Corp./NNP
and/CC
Citicorp/NNP
,/,
he/PRP
said/VBD
./.
Mr./NNP
Bebear/NNP
said/VBD
Axa-Midi/NNP
Group/NNP
has/VBZ
``/``
more/RBR
than/IN
$/$
2.5/CD
billion/CD
of/IN
non-strategic/JJ
assets/NNS
that/IN
we/PRP
can/MD
and/CC
will/MD
sell/VB
''/''
to/TO
help/VB
pay/VB
off/IN
debt/NN
from/IN
the/DT
acquisition/NN
./.
He/PRP
said/VBD
the/DT
assets/NNS
to/TO
be/VB
sold/VBN
would/MD
be/VB
``/``
non-insurance/NN
''/''
assets/NNS
,/,
including/VBG
a/DT
beer/NN
company/NN
and/CC
a/DT
real/JJ
estate/NN
firm/NN
,/,
and/CC
would/MD
n't/RB
include/VB
any/DT
pieces/NNS
of/IN
Farmers/NNPS
./.
``/``
We/PRP
wo/MD
n't/RB
put/VB
any/DT
burden/NN
on/IN
Farmers/NNPS
,/,
''/''
he/PRP
said/VBD
./.
The/DT
amended/VBN
filings/NNS
also/RB
point/VBP
out/IN
that/DT
under/IN
a/DT
new/JJ
agreement/NN
,/,
Hoylake/NNP
has/VBZ
an/DT
absolute/JJ
obligation/NN
to/TO
sell/VB
Farmers/NNPS
to/TO
Axa/NNP
upon/IN
an/DT
acquisition/NN
of/IN
B.A.T/NNP
./.
``/``
We/PRP
hope/VBP
that/DT
with/IN
what/WP
we/PRP
did/VBD
,/,
the/DT
regulators/NNS
will/MD
not/RB
need/VB
to/TO
evaluate/VB
Hoylake/NNP
,/,
and/CC
they/PRP
can/MD
directly/RB
look/VB
at/IN
the/DT
agreement/NN
with/IN
us/PRP
,/,
because/IN
Hoylake/NNP
wo/MD
n't/RB
be/VB
an/DT
owner/NN
of/IN
Farmers/NNPS
at/IN
anytime/RB
,/,
''/''
Mr./NNP
Bebear/NNP
said/VBD
./.
Any/DT
change/NN
of/IN
control/NN
in/IN
Farmers/NNPS
needs/VBZ
approval/NN
of/IN
the/DT
insurance/NN
commissioners/NNS
in/IN
the/DT
nine/CD
states/NNS
where/WRB
Farmers/NNPS
and/CC
its/PRP$
related/VBN
companies/NNS
are/VBP
incorporated/VBN
./.
The/DT
amended/VBN
filings/NNS
were/VBD
required/VBN
because/IN
of/IN
the/DT
new/JJ
agreement/NN
between/IN
Axa/NNP
and/CC
Hoylake/NNP
,/,
and/CC
to/TO
reflect/VB
the/DT
extension/NN
that/IN
Sir/NNP
James/NNP
received/VBD
last/JJ
month/NN
under/IN
British/JJ
takeover/NN
rules/NNS
to/TO
complete/VB
his/PRP$
proposed/VBN
acquisition/NN
./.
Hoylake/NNP
dropped/VBD
its/PRP$
initial/JJ
#/#
13.35/CD
billion/CD
$/$
20.71/CD
billion/CD
takeover/NN
bid/NN
after/IN
it/PRP
received/VBD
the/DT
extension/NN
,/,
but/CC
said/VBD
it/PRP
would/MD
launch/VB
a/DT
new/JJ
bid/NN
if/IN
and/CC
when/WRB
the/DT
propsed/VBN
sale/NN
of/IN
Farmers/NNPS
to/TO
Axa/NNP
receives/VBZ
regulatory/JJ
approval/NN
./.
A/DT
spokesman/NN
for/IN
B.A.T/NNP
said/VBD
of/IN
the/DT
amended/VBN
filings/NNS
that/IN
,/,
``/``
It/PRP
would/MD
appear/VB
that/IN
nothing/NN
substantive/JJ
has/VBZ
changed/VBN
./.
The/DT
new/JJ
financing/NN
structure/NN
is/VBZ
still/RB
a/DT
very-highly/JJ
leveraged/JJ
one/CD
,/,
and/CC
Axa/NNP
still/RB
plans/VBZ
to/TO
take/VB
out/IN
75/CD
%/NN
of/IN
Farmers/NNPS
'/POS
earnings/NNS
as/IN
dividends/NNS
to/TO
service/VB
their/PRP$
debt/NN
./.
''/''
That/DT
dividend/NN
is/VBZ
almost/RB
double/RB
the/DT
35/CD
%/NN
currently/RB
taken/VBN
out/IN
of/IN
Farmers/NNPS
by/IN
B.A.T/NNP
,/,
the/DT
spokesman/NN
added/VBD
./.
``/``
It/PRP
would/MD
have/VB
severe/JJ
implications/NNS
for/IN
Farmers/NNPS
'/POS
policy/NN
holders/NNS
./.
''/''
To/TO
fend/VB
off/IN
Sir/NNP
James/NNP
's/POS
advances/NNS
,/,
B.A.T/NNP
has/VBZ
proposed/VBN
a/DT
sweeping/JJ
restructuring/NN
that/WDT
would/MD
pare/VB
it/PRP
to/TO
a/DT
tobacco/NN
and/CC
financial/JJ
services/NNS
concern/NN
./.
Dismal/JJ
sales/NNS
at/IN
General/NNP
Motors/NNPS
Corp./NNP
dragged/VBD
the/DT
U.S./NNP
car/NN
and/CC
truck/NN
market/NN
down/IN
below/IN
year-ago/JJ
levels/NNS
in/IN
early/JJ
October/NNP
,/,
the/DT
first/JJ
sales/NNS
period/NN
of/IN
the/DT
1990/CD
model/NN
year/NN
./.
The/DT
eight/CD
major/JJ
domestic/JJ
auto/NN
makers/NNS
sold/VBD
160,510/CD
North/NNP
American-made/JJ
cars/NNS
in/IN
the/DT
first/JJ
10/CD
days/NNS
of/IN
October/NNP
,/,
a/DT
12.6/CD
%/NN
drop/NN
from/IN
a/DT
year/NN
earlier/RBR
./.
Domestically/RB
built/VBN
truck/NN
sales/NNS
were/VBD
down/IN
10.4/CD
%/NN
to/TO
86,555/CD
pickups/NNS
,/,
vans/NNS
and/CC
sport/NN
utility/NN
vehicles/NNS
./.
The/DT
heavy/JJ
use/NN
of/IN
incentives/NNS
to/TO
clear/VB
out/IN
1989/CD
models/NNS
appears/VBZ
to/TO
have/VB
taken/VBN
the/DT
steam/NN
,/,
at/IN
least/JJS
initially/RB
,/,
out/IN
of/IN
1990/CD
model/NN
sales/NNS
,/,
which/WDT
began/VBD
officially/RB
Oct./NNP
1/CD
./.
This/DT
appears/VBZ
particularly/RB
true/JJ
at/IN
GM/NNP
,/,
which/WDT
had/VBD
strong/JJ
sales/NNS
in/IN
August/NNP
and/CC
September/NNP
but/CC
saw/VBD
its/PRP$
early/JJ
October/NNP
car/NN
and/CC
truck/NN
results/NNS
fall/VB
26.3/CD
%/NN
from/IN
last/JJ
year/NN
's/POS
unusually/RB
high/JJ
level/NN
./.
Overall/RB
,/,
sales/NNS
of/IN
all/DT
domestic-made/JJ
vehicles/NNS
fell/VBD
11.9/CD
%/NN
from/IN
a/DT
year/NN
ago/IN
./.
Without/IN
GM/NNP
,/,
overall/JJ
sales/NNS
for/IN
the/DT
other/JJ
U.S./NNP
automakers/NNS
were/VBD
roughly/RB
flat/JJ
with/IN
1989/CD
results/NNS
./.
Some/DT
of/IN
the/DT
U.S./NNP
auto/NN
makers/NNS
have/VBP
already/RB
adopted/VBN
incentives/NNS
on/IN
many/JJ
1990/CD
models/NNS
,/,
but/CC
they/PRP
may/MD
have/VB
to/TO
broaden/VB
their/PRP$
programs/NNS
to/TO
keep/VB
sales/NNS
up/IN
./.
``/``
We/PRP
've/VBP
created/VBN
a/DT
condition/NN
where/WRB
,/,
without/IN
incentives/NNS
,/,
it/PRP
's/VBZ
a/DT
tough/JJ
market/NN
,/,
''/''
said/VBD
Tom/NNP
Kelly/NNP
,/,
sales/NNS
manager/NN
for/IN
Bill/NNP
Wink/NNP
Chevrolet/NNP
in/IN
Dearborn/NNP
,/,
Mich/NNP
./.
Car/NN
sales/NNS
fell/VBD
to/TO
a/DT
seasonally/RB
adjusted/VBN
annual/JJ
selling/VBG
rate/NN
of/IN
5.8/CD
million/CD
vehicles/NNS
,/,
the/DT
lowest/JJS
since/IN
October/NNP
1987/CD
./.
The/DT
poor/JJ
performance/NN
contrasts/VBZ
with/IN
a/DT
robust/JJ
selling/NN
rate/NN
of/IN
almost/RB
eight/CD
million/CD
last/JJ
month/NN
./.
Furthermore/RB
,/,
dealers/NNS
contacted/VBD
late/JJ
last/JJ
week/NN
said/VBD
they/PRP
could/MD
n't/RB
see/VB
any/DT
immediate/JJ
impact/NN
on/IN
sales/NNS
of/IN
Friday/NNP
's/POS
steep/JJ
market/NN
decline/NN
./.
GM/NNP
's/POS
domestic/JJ
car/NN
sales/NNS
dropped/VBD
24.3/CD
%/NN
and/CC
its/PRP$
domestic/JJ
trucks/NNS
were/VBD
down/IN
an/DT
even/RB
steeper/JJR
28.7/CD
%/NN
from/IN
the/DT
same/JJ
period/NN
a/DT
year/NN
ago/IN
./.
All/DT
of/IN
the/DT
GM/NNP
divisions/NNS
except/IN
Cadillac/NNP
showed/VBD
big/JJ
declines/NNS
./.
Cadillac/NNP
posted/VBD
a/DT
3.2/CD
%/NN
increase/NN
despite/IN
new/JJ
competition/NN
from/IN
Lexus/NNP
,/,
the/DT
fledging/VBG
luxury-car/NN
division/NN
of/IN
Toyota/NNP
Motor/NNP
Corp/NNP
./.
Lexus/NNP
sales/NNS
were/VBD
n't/RB
available/JJ
;/:
the/DT
cars/NNS
are/VBP
imported/VBN
and/CC
Toyota/NNP
reports/VBZ
their/PRP$
sales/NNS
only/RB
at/IN
month-end/NN
./.
The/DT
sales/NNS
drop/VBP
for/IN
the/DT
No./NN
1/CD
car/NN
maker/NN
may/MD
have/VB
been/VBN
caused/VBN
in/IN
part/NN
by/IN
the/DT
end/NN
in/IN
September/NNP
of/IN
dealer/NN
incentives/NNS
that/IN
GM/NNP
offered/VBD
in/IN
addition/NN
to/TO
consumer/NN
rebates/NNS
and/CC
low-interest/JJ
financing/NN
,/,
a/DT
company/NN
spokesman/NN
said/VBD
./.
Last/JJ
year/NN
,/,
GM/NNP
had/VBD
a/DT
different/JJ
program/NN
in/IN
place/NN
that/WDT
continued/VBD
rewarding/JJ
dealers/NNS
until/IN
all/PDT
the/DT
1989/CD
models/NNS
had/VBD
been/VBN
sold/VBN
./.
Aside/RB
from/IN
GM/NNP
,/,
other/JJ
car/NN
makers/NNS
posted/VBD
generally/RB
mixed/VBN
results/NNS
./.
Ford/NNP
Motor/NNP
Co./NNP
had/VBD
a/DT
1.8/CD
%/NN
drop/NN
in/IN
domestic/JJ
car/NN
sales/NNS
but/CC
a/DT
2.4/CD
%/NN
increase/NN
in/IN
domestic/JJ
truck/NN
sales/NNS
./.
Chrysler/NNP
Corp./NNP
had/VBD
a/DT
7.5/CD
%/NN
drop/NN
in/IN
car/NN
sales/NNS
,/,
echoing/VBG
its/PRP$
generally/RB
slow/JJ
performance/NN
all/DT
year/NN
./.
However/RB
,/,
sales/NNS
of/IN
trucks/NNS
,/,
including/VBG
the/DT
company/NN
's/POS
popular/JJ
minivans/NNS
,/,
rose/VBD
4.3/CD
%/NN
./.
Honda/NNP
Motor/NNP
Co./NNP
's/POS
sales/NNS
of/IN
domestically/RB
built/VBN
vehicles/NNS
plunged/VBD
21.7/CD
%/NN
from/IN
a/DT
year/NN
earlier/RBR
./.
Honda/NNP
's/POS
plant/NN
in/IN
Marysville/NNP
,/,
Ohio/NNP
,/,
was/VBD
gearing/VBG
up/IN
to/TO
build/VB
1990/CD
model/NN
Accords/NNPS
,/,
a/DT
Honda/NNP
spokesman/NN
said/VBD
./.
``/``
We/PRP
're/VBP
really/RB
confident/JJ
everything/NN
will/MD
bounce/VB
back/RB
to/TO
normal/JJ
,/,
''/''
he/PRP
added/VBD
./.
Separately/RB
,/,
Chrysler/NNP
said/VBD
firm/JJ
prices/NNS
on/IN
its/PRP$
1990-model/JJ
domestic/JJ
cars/NNS
and/CC
minivans/NNS
will/MD
rise/VB
an/DT
average/NN
of/IN
5/CD
%/NN
over/IN
comparably/RB
equipped/VBN
1989/CD
models/NNS
./.
Firm/JJ
prices/NNS
were/VBD
generally/RB
in/IN
line/NN
with/IN
the/DT
tentative/JJ
prices/NNS
announced/VBD
earlier/RBR
this/DT
fall/NN
./.
At/IN
that/DT
time/NN
,/,
Chrysler/NNP
said/VBD
base/NN
prices/NNS
,/,
which/WDT
are/VBP
n't/RB
adjusted/VBN
for/IN
equipment/NN
changes/NNS
,/,
would/MD
rise/VB
between/IN
4/CD
%/NN
and/CC
9/CD
%/NN
on/IN
most/JJS
vehicle/NN
./.
a/SYM
-/:
Totals/NNS
include/VBP
only/JJ
vehicle/NN
sales/NNS
reported/VBN
in/IN
period/NN
./.
c/SYM
-/:
Domestic/JJ
car/NN
d/SYM
-/:
Percentage/NN
change/NN
is/VBZ
greater/JJR
than/IN
999/CD
%/NN
./.
x/SYM
-/:
There/EX
were/VBD
8/CD
selling/VBG
days/NNS
in/IN
the/DT
most/RBS
recent/JJ
period/NN
and/CC
8/CD
a/DT
year/NN
earlier/RBR
./.
Percentage/NN
differences/NNS
based/VBN
on/IN
daily/JJ
sales/NNS
rate/NN
rather/RB
than/IN
sales/NNS
volume/NN
./.
Antonio/NNP
L./NNP
Savoca/NNP
,/,
66/CD
years/NNS
old/JJ
,/,
was/VBD
named/VBN
president/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
the/DT
Atlantic/NNP
Research/NNP
Corp./NNP
subsidiary/NN
./.
Mr./NNP
Savoca/NNP
had/VBD
been/VBN
a/DT
consultant/NN
to/TO
the/DT
subsidiary/NN
's/POS
rocket-propulsion/NN
operations/NNS
./.
Mr./NNP
Savoca/NNP
succeeds/VBZ
William/NNP
H./NNP
Borten/NNP
,/,
who/WP
resigned/VBD
to/TO
pursue/VB
personal/JJ
interests/NNS
./.
Sequa/NNP
makes/VBZ
and/CC
repairs/VBZ
jet/NN
engines/NNS
./.
It/PRP
also/RB
has/VBZ
interests/NNS
in/IN
military/JJ
electronics/NNS
and/CC
electro-optics/NNS
,/,
marine/JJ
transportation/NN
and/CC
machinery/NN
used/VBN
to/TO
make/VB
food/NN
and/CC
beverage/NN
cans/NNS
./.
It/PRP
was/VBD
n't/RB
so/RB
long/JJ
ago/IN
that/IN
a/DT
radio/NN
network/NN
funded/VBN
by/IN
the/DT
U.S./NNP
Congress/NNP
--/:
and/CC
originally/RB
by/IN
the/DT
Central/NNP
Intelligence/NNP
Agency/NNP
--/:
was/VBD
accused/VBN
by/IN
officials/NNS
here/RB
of/IN
employing/VBG
propagandists/NNS
,/,
imperialists/NNS
and/CC
spies/NNS
./.
Now/RB
,/,
the/DT
network/NN
has/VBZ
opened/VBN
a/DT
news/NN
bureau/NN
in/IN
the/DT
Hungarian/JJ
capital/NN
./.
Employees/NNS
held/VBD
an/DT
open/JJ
house/NN
to/TO
celebrate/VB
and/CC
even/RB
hung/VBD
out/IN
a/DT
sign/NN
:/:
``/``
Szabad/NNP
Europa/NNP
Radio/NNP
''/''
--/:
Radio/NNP
Free/NNP
Europe/NNP
./.
``/``
I/PRP
think/VBP
this/DT
is/VBZ
a/DT
victory/NN
for/IN
the/DT
radio/NN
,/,
''/''
says/VBZ
Barnabas/NNP
de/NNP
Bueky/NNP
,/,
a/DT
55-year-old/JJ
former/JJ
Hungarian/JJ
refugee/NN
who/WP
works/VBZ
in/IN
the/DT
Munich/NNP
,/,
West/NNP
Germany/NNP
,/,
headquarters/NN
as/IN
deputy/JJ
director/NN
of/IN
the/DT
Hungarian/JJ
service/NN
./.
In/IN
fact/NN
,/,
the/DT
network/NN
hopes/VBZ
to/TO
set/VB
up/IN
offices/NNS
in/IN
Warsaw/NNP
and/CC
anywhere/RB
else/RB
in/IN
the/DT
East/NNP
Bloc/NNP
that/WDT
will/MD
have/VB
it/PRP
./.
But/CC
the/DT
rapid/JJ
changes/NNS
brought/VBD
on/IN
by/IN
glasnost/NN
and/CC
open/JJ
borders/NNS
are/VBP
altering/VBG
the/DT
network/NN
's/POS
life/NN
in/IN
more/JJR
ways/NNS
than/IN
one/CD
./.
In/IN
fact/NN
,/,
Radio/NNP
Free/NNP
Europe/NNP
is/VBZ
in/IN
danger/NN
of/IN
suffering/VBG
from/IN
its/PRP$
success/NN
./.
While/IN
the/DT
network/NN
currently/RB
can/MD
operate/VB
freely/RB
in/IN
Budapest/NNP
,/,
so/RB
can/MD
others/NNS
./.
In/IN
addition/NN
,/,
competition/NN
for/IN
listeners/NNS
is/VBZ
getting/VBG
tougher/JJR
in/IN
many/JJ
ways/NNS
than/IN
when/WRB
broadcasting/NN
here/RB
was/VBD
strictly/RB
controlled/VBN
./.
Instead/RB
of/IN
being/VBG
denounced/VBN
as/IN
an/DT
evil/JJ
agent/NN
of/IN
imperialism/NN
,/,
Radio/NNP
Free/NNP
Europe/NNP
is/VBZ
more/RBR
likely/JJ
to/TO
draw/VB
the/DT
criticism/NN
that/IN
its/PRP$
programs/NNS
are/VBP
too/RB
tame/JJ
,/,
even/RB
boring/JJ
./.
``/``
They/PRP
have/VBP
a/DT
lot/NN
to/TO
do/VB
these/DT
days/NNS
to/TO
compete/VB
with/IN
Hungarian/JJ
radio/NN
,/,
''/''
says/VBZ
Andrew/NNP
Deak/NNP
,/,
a/DT
computer-science/NN
student/NN
at/IN
the/DT
Technical/NNP
University/NNP
in/IN
Budapest/NNP
./.
``/``
The/DT
Hungarian/NNP
radio/NN
reporters/NNS
seem/VBP
better/RB
informed/VBN
and/CC
more/RBR
critical/JJ
about/IN
about/IN
what/WP
's/VBZ
going/VBG
on/IN
here/RB
./.
''/''
Indeed/RB
,/,
Hungary/NNP
is/VBZ
in/IN
the/DT
midst/NN
of/IN
a/DT
media/NNS
explosion/NN
./.
Boys/NNS
on/IN
busy/JJ
street/NN
corners/NNS
peddle/VBP
newspapers/NNS
of/IN
every/DT
political/JJ
stripe/NN
./.
Newsstands/NNS
are/VBP
packed/VBN
with/IN
a/DT
colorful/JJ
array/NN
of/IN
magazines/NNS
./.
Radio/NN
and/CC
television/NN
are/VBP
getting/VBG
livelier/JJR
and/CC
bolder/JJR
./.
The/DT
British/NNP
Broadcasting/NNP
Corp./NNP
and/CC
the/DT
U.S./NNP
State/NNP
Department/NNP
's/POS
Voice/NNP
of/IN
America/NNP
broadcast/NN
over/IN
Hungarian/JJ
airwaves/NNS
,/,
though/IN
only/RB
a/DT
few/JJ
hours/NNS
a/DT
day/NN
each/DT
in/IN
Hungarian/NNP
./.
Australian/JJ
press/NN
magnate/NN
Rupert/NNP
Murdoch/NNP
has/VBZ
bought/VBN
50/CD
%/NN
stakes/NNS
in/IN
two/CD
popular/JJ
and/CC
gossipy/JJ
Hungarian/JJ
newspapers/NNS
,/,
while/IN
Britain/NNP
's/POS
Robert/NNP
Maxwell/NNP
has/VBZ
let/VBN
it/PRP
be/VB
known/VBN
here/RB
that/IN
he/PRP
is/VBZ
thinking/VBG
about/IN
similar/JJ
moves/NNS
./.
But/CC
Radio/NNP
Free/NNP
Europe/NNP
does/VBZ
n't/RB
plan/VB
to/TO
fade/VB
away/RB
./.
With/IN
its/PRP$
mission/NN
for/IN
free/JJ
speech/NN
and/CC
the/DT
capitalist/NN
way/NN
,/,
the/DT
network/NN
's/POS
staff/NN
says/VBZ
it/PRP
still/RB
has/VBZ
plenty/RB
to/TO
do/VB
--/:
in/IN
Hungary/NNP
and/CC
in/IN
the/DT
``/``
Great/NNP
Eastern/NNP
Beyond/NNP
./.
''/''
Radio/NNP
Free/NNP
Europe/NNP
and/CC
its/PRP$
sister/NN
station/NN
for/IN
the/DT
Soviet/NNP
Union/NNP
,/,
Radio/NNP
Liberty/NNP
,/,
say/VBP
they/PRP
wo/MD
n't/RB
cut/VB
back/RB
their/PRP$
more/RBR
than/IN
19/CD
hours/NNS
of/IN
daily/JJ
broadcasts/NNS
./.
They/PRP
are/VBP
still/RB
an/DT
important/JJ
source/NN
of/IN
news/NN
for/IN
60/CD
million/CD
listeners/NNS
in/IN
23/CD
exotic/JJ
tongues/NNS
:/:
from/IN
Bulgarian/NNP
and/CC
Belorussian/NNP
to/TO
Kazakh/NNP
and/CC
Kirghiz/NNP
./.
The/DT
establishment/NN
of/IN
its/PRP$
first/JJ
bureau/NN
in/IN
Warsaw/NNP
Pact/NNP
territory/NN
shows/VBZ
the/DT
depth/NN
of/IN
some/DT
of/IN
the/DT
changes/NNS
in/IN
Eastern/NNP
Europe/NNP
./.
Months/NNS
before/IN
the/DT
decision/NN
by/IN
the/DT
Hungarian/NNP
Communist/NNP
Party/NNP
to/TO
rename/VB
itself/PRP
Socialist/JJ
and/CC
try/VB
to/TO
look/VB
more/RBR
appealing/JJ
to/TO
voters/NNS
,/,
the/DT
country/NN
's/POS
rulers/NNS
were/VBD
trying/VBG
to/TO
look/VB
more/RBR
hospitable/JJ
./.
It/PRP
proved/VBD
a/DT
perfect/JJ
time/NN
for/IN
Radio/NNP
Free/NNP
Europe/NNP
to/TO
ask/VB
for/IN
permission/NN
to/TO
set/VB
up/IN
office/NN
./.
Not/RB
only/RB
did/VBD
the/DT
Hungarian/NNP
Ministry/NNP
of/IN
Foreign/NNP
Affairs/NNPS
approve/VB
Radio/NNP
Free/NNP
Europe/NNP
's/POS
new/JJ
location/NN
,/,
but/CC
the/DT
Ministry/NNP
of/IN
Telecommunications/NNPS
did/VBD
something/NN
even/RB
more/RBR
amazing/JJ
:/:
``/``
They/PRP
found/VBD
us/PRP
four/CD
phone/NN
lines/NNS
in/IN
central/JJ
Budapest/NNP
,/,
''/''
says/VBZ
Geza/NNP
Szocs/NNP
,/,
a/DT
Radio/NNP
Free/NNP
Europe/NNP
correspondent/NN
who/WP
helped/VBD
organize/VB
the/DT
Budapest/NNP
location/NN
./.
``/``
That/DT
is/VBZ
a/DT
miracle/NN
./.
''/''
It/PRP
's/VBZ
a/DT
far/JJ
cry/NN
from/IN
the/DT
previous/JJ
treatment/NN
of/IN
the/DT
network/NN
,/,
which/WDT
had/VBD
to/TO
overcome/VB
jamming/NN
of/IN
its/PRP$
frequencies/NNS
and/CC
intimidation/NN
of/IN
local/JJ
correspondents/NNS
who/WP
filed/VBD
reports/NNS
to/TO
the/DT
network/NN
by/IN
phone/NN
,/,
secret/JJ
messengers/NNS
or/CC
letters/NNS
In/IN
fact/NN
,/,
some/DT
of/IN
the/DT
network/NN
's/POS
Hungarian/JJ
listeners/NNS
say/VBP
they/PRP
owe/VBP
Radio/NNP
Free/NNP
Europe/NNP
loyalty/NN
because/IN
it/PRP
was/VBD
responsible/JJ
in/IN
many/JJ
ways/NNS
for/IN
keeping/VBG
hope/NN
alive/JJ
through/IN
what/WP
one/CD
writer/NN
here/RB
calls/VBZ
the/DT
``/``
Dark/NNP
Ages/NNPS
of/IN
the/DT
20th/JJ
Century/NN
./.
''/''
``/``
During/IN
the/DT
past/JJ
four/CD
years/NNS
,/,
many/JJ
of/IN
us/PRP
have/VBP
sat/VBN
up/IN
until/IN
late/JJ
at/IN
night/NN
listening/VBG
to/TO
our/PRP$
radios/NNS
,/,
''/''
says/VBZ
the/DT
writer/NN
./.
``/``
There/EX
were/VBD
some/DT
very/RB
brave/JJ
broadcasts/NNS
./.
''/''
The/DT
listeners/NNS
,/,
too/RB
,/,
had/VBD
to/TO
be/VB
brave/JJ
./.
Through/IN
much/JJ
of/IN
the/DT
post-World/NNP
War/NNP
II/NNP
period/NN
,/,
listening/VBG
to/TO
Western/JJ
broadcasts/NNS
was/VBD
a/DT
crime/NN
in/IN
Hungary/NNP
./.
``/``
When/WRB
we/PRP
listen/VBP
to/TO
the/DT
Europe/NNP
station/NN
,/,
my/PRP$
mother/NN
still/RB
gets/VBZ
nervous/JJ
,/,
''/''
says/VBZ
a/DT
Budapest/NNP
translator/NN
./.
``/``
She/PRP
wants/VBZ
to/TO
turn/VB
down/RP
the/DT
volume/NN
and/CC
close/VB
the/DT
curtains/NNS
./.
''/''
Now/RB
,/,
the/DT
toughest/JJS
competition/NN
for/IN
Radio/NNP
Free/NNP
Europe/NNP
comes/VBZ
during/IN
the/DT
late-night/JJ
slot/NN
./.
Hungarian/JJ
radio/NN
often/RB
saves/VBZ
its/PRP$
most/RBS
politically/RB
outspoken/JJ
broadcasts/NNS
for/IN
around/IN
midnight/NN
./.
Television/NN
,/,
which/WDT
most/JJS
of/IN
the/DT
time/NN
is/VBZ
considered/VBN
rather/RB
tame/JJ
,/,
has/VBZ
entered/VBN
the/DT
running/VBG
with/IN
a/DT
new/JJ
program/NN
,/,
``/``
The/NNP
End/NNP
of/IN
the/DT
Day/NNP
,/,
''/''
which/WDT
comes/VBZ
on/IN
after/IN
11/CD
p.m/RB
./.
It/PRP
is/VBZ
a/DT
talk/NN
show/NN
with/IN
opposition/NN
leaders/NNS
and/CC
political/JJ
experts/NNS
who/WP
discuss/VBP
Hungary/NNP
's/POS
domestic/JJ
problems/NNS
as/RB
well/RB
as/IN
foreign/JJ
affairs/NNS
./.
Those/DT
who/WP
want/VBP
to/TO
hear/VB
even/RB
more/RBR
radical/JJ
views/NNS
have/VBP
to/TO
get/VB
up/IN
at/IN
five/CD
on/IN
Sunday/NNP
morning/NN
for/IN
``/``
Sunday/NNP
Journal/NNP
,/,
''/''
on/IN
Hungarian/NNP
Radio/NNP
./.
The/DT
competitive/JJ
spirit/NN
is/VBZ
clearly/RB
influencing/VBG
Radio/NNP
Free/NNP
Europe/NNP
,/,
which/WDT
is/VBZ
trying/VBG
to/TO
beef/VB
up/IN
programs/NNS
./.
The/DT
Budapest/NNP
office/NN
plans/VBZ
to/TO
hire/VB
free-lance/JJ
reporters/NNS
to/TO
cover/VB
the/DT
latest/JJS
happenings/NNS
in/IN
Hungarian/JJ
country/NN
towns/NNS
from/IN
Nagykanizsa/NNP
in/IN
the/DT
west/NN
to/TO
Nyiregyhaza/NNP
in/IN
the/DT
east/JJ
./.
The/DT
Hungarian/JJ
service/NN
has/VBZ
a/DT
daily/JJ
40-minute/JJ
news/NN
show/NN
called/VBN
Newsreel/NNP
,/,
with/IN
international/JJ
and/CC
domestic/JJ
news/NN
,/,
plus/CC
a/DT
daily/JJ
news/NN
review/NN
of/IN
opinions/NNS
from/IN
around/IN
the/DT
world/NN
./.
There/EX
's/VBZ
also/RB
a/DT
host/NN
of/IN
new/JJ
programs/NNS
,/,
trying/VBG
to/TO
lighten/VB
up/IN
on/IN
the/DT
traditional/JJ
diet/NN
of/IN
politics/NNS
./.
A/DT
daily/JJ
35-minute/JJ
program/NN
called/VBN
``/``
The/NNP
March/NNP
of/IN
Time/NNP
''/''
tries/VBZ
to/TO
find/VB
interesting/JJ
tidbits/NNS
of/IN
lighthearted/JJ
news/NN
and/CC
gossip/NN
from/IN
around/IN
the/DT
world/NN
./.
There/EX
's/VBZ
a/DT
program/NN
for/IN
women/NNS
and/CC
a/DT
science/NN
show/NN
./.
And/CC
to/TO
attract/VB
younger/JJR
listeners/NNS
,/,
Radio/NNP
Free/NNP
Europe/NNP
intersperses/VBZ
the/DT
latest/JJS
in/IN
Western/JJ
rock/NN
groups/NNS
./.
The/DT
Pet/NNP
Shop/NNP
Boys/NNPS
are/VBP
big/JJ
this/DT
year/NN
in/IN
Budapest/NNP
./.
``/``
We/PRP
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starving/VBG
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all/PDT
the/DT
news/NN
,/,
''/''
says/VBZ
Mr./NNP
Deak/NNP
,/,
the/DT
student/NN
./.
``/``
Every/DT
moment/NN
we/PRP
want/VBP
to/TO
know/VB
everything/NN
about/IN
the/DT
world/NN
./.
''/''
Proposals/NNS
for/IN
government-operated/JJ
``/``
national/JJ
service/NN
,/,
''/''
like/IN
influenza/NN
,/,
flare/VBP
up/IN
from/IN
time/NN
to/TO
time/NN
,/,
depress/VBP
the/DT
resistance/NN
of/IN
the/DT
body/NN
politic/JJ
,/,
run/VBP
their/PRP$
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,/,
and/CC
seem/VBP
to/TO
disappear/VB
,/,
only/RB
to/TO
mutate/VB
and/CC
afflict/VB
public/JJ
life/NN
anew/RB
./.
The/DT
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metaphor/NN
comes/VBZ
to/TO
mind/NN
,/,
of/IN
course/NN
,/,
not/RB
as/IN
an/DT
aspersion/NN
on/IN
the/DT
advocates/NNS
of/IN
national/JJ
service/NN
./.
Rather/RB
,/,
it/PRP
is/VBZ
born/VBN
of/IN
frustration/NN
with/IN
having/VBG
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combat/VB
constantly/RB
changing/VBG
strains/NNS
of/IN
a/DT
statist/JJ
idea/NN
that/IN
one/NN
thought/VBD
had/VBD
been/VBN
eliminated/VBN
in/IN
the/DT
early/JJ
1970s/CD
,/,
along/IN
with/IN
smallpox/NN
./.
It/PRP
is/VBZ
back/RB
with/IN
us/PRP
again/RB
,/,
in/IN
the/DT
form/NN
of/IN
legislation/NN
to/TO
pay/VB
volunteers/NNS
under/IN
a/DT
``/``
National/NNP
and/CC
Community/NNP
Service/NNP
Act/NNP
,/,
''/''
a/DT
proposal/NN
with/IN
a/DT
serious/JJ
shot/NN
at/IN
congressional/JJ
passage/NN
this/DT
fall/NN
./.
Why/WRB
does/VBZ
the/DT
national-service/JJ
virus/NN
keep/VB
coming/VBG
back/RB
?/.
Perhaps/RB
it/PRP
is/VBZ
because/RB
utopian/JJ
nostalgia/NN
evokes/VBZ
both/DT
military/JJ
experience/NN
and/CC
the/DT
social/JJ
gospel/NN
./.
If/IN
only/RB
we/PRP
could/MD
get/VB
America/NNP
's/POS
wastrel/NN
youth/NN
into/IN
at/IN
least/JJS
a/DT
psychic/JJ
uniform/NN
we/PRP
might/MD
be/VB
able/JJ
to/TO
teach/VB
self-discipline/NN
again/RB
and/CC
revive/VB
the/DT
spirit/NN
of/IN
giving/VBG
./.
A/DT
quarter/NN
of/IN
a/DT
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as/IN
a/DT
way/NN
of/IN
curing/VBG
the/DT
manifest/JJ
inequities/NNS
of/IN
the/DT
draft/NN
--/:
by/IN
,/,
of/IN
all/DT
things/NNS
,/,
expanding/VBG
the/DT
draft/NN
./.
Those/DT
of/IN
us/PRP
who/WP
resisted/VBD
the/DT
idea/NN
then/RB
suspect/VBP
today/NN
that/IN
an/DT
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of/IN
government/NN
service/NN
for/IN
all/DT
young/JJ
people/NNS
is/VBZ
still/RB
the/DT
true/JJ
long-term/JJ
aim/NN
of/IN
many/JJ
national-service/JJ
backers/NNS
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despite/IN
their/PRP$
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present/JJ
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contain/VBP
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coercion/NN
./.
Choice/NN
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the/DT
volunteer/NN
military/NN
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the/DT
1970s/CD
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doom/VB
national/JJ
service/NN
as/RB
much/RB
as/IN
the/DT
draft/NN
./.
But/CC
the/DT
virus/NN
was/VBD
kept/VBN
alive/JJ
in/IN
sociology/NN
departments/NNS
until/IN
a/DT
couple/NN
of/IN
years/NNS
ago/IN
,/,
when/WRB
it/PRP
again/RB
was/VBD
let/VBN
loose/RB
./.
This/DT
time/NN
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attempted/VBD
to/TO
invade/VB
two/CD
connected/VBN
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,/,
the/DT
rising/VBG
cost/NN
of/IN
higher/JJR
education/NN
and/CC
the/DT
rising/VBG
expense/NN
to/TO
the/DT
federal/JJ
government/NN
of/IN
educational/JJ
grants/NNS
and/CC
loans/NNS
./.
Why/WRB
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keep/VB
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even/RB
expand/VB
the/DT
loans/NNS
and/CC
grants/NNS
,/,
the/DT
advocates/NNS
reasoned/VBD
,/,
but/CC
require/VB
some/DT
form/NN
of/IN
service/NN
from/IN
each/DT
recipient/NN
?/.
Military/JJ
service/NN
,/,
moreover/RB
,/,
could/MD
be/VB
a/DT
national-service/NN
option/NN
./.
Thus/RB
,/,
undoubtedly/RB
it/PRP
was/VBD
hoped/VBN
that/IN
the/DT
new/JJ
strain/NN
of/IN
national/JJ
service/NN
would/MD
prove/VB
contagious/JJ
,/,
infecting/VBG
patriotic/JJ
conservatives/NNS
,/,
pay-as-you-go/JJ
moderates/NNS
,/,
and/CC
idealistic/JJ
liberals/NNS
./.
The/DT
Democratic/NNP
Leadership/NNP
Council/NNP
,/,
a/DT
centrist/JJ
group/NN
sponsoring/VBG
the/DT
plan/NN
,/,
surely/RB
thought/VBD
it/PRP
might/MD
help/VB
the/DT
party/NN
to/TO
attract/VB
support/NN
,/,
especially/RB
among/IN
college/NN
students/NNS
and/CC
their/PRP$
parents/NNS
./.
A/DT
provision/NN
allowing/VBG
grants/NNS
to/TO
be/VB
applied/VBN
to/TO
first-home/JJ
purchases/NNS
was/VBD
added/VBN
to/TO
appeal/VB
to/TO
those/DT
who/WP
had/VBD
had/VBN
enough/RB
of/IN
schooling/NN
./.
The/DT
DLC/NNP
plan/NN
envisaged/VBN
``/``
volunteers/NNS
''/''
planting/VBG
trees/NNS
,/,
emptying/VBG
bedpans/NNS
,/,
tutoring/VBG
children/NNS
,/,
and/CC
assisting/VBG
librarians/NNS
for/IN
$/$
100/CD
a/DT
week/NN
,/,
tax/NN
free/JJ
,/,
plus/CC
medical/JJ
care/NN
./.
With/IN
a/DT
tax-free/JJ
$/$
10,000/CD
voucher/NN
payment/NN
at/IN
the/DT
end/NN
of/IN
each/DT
year/NN
,/,
the/DT
volunteers/NNS
would/MD
be/VB
making/VBG
a/DT
wage/NN
comparable/JJ
to/TO
$/$
17,500/CD
a/DT
year/NN
./.
Mind/VB
you/PRP
,/,
most/JJS
of/IN
``/``
the/DT
volunteers/NNS
''/''
would/MD
be/VB
unskilled/JJ
17/CD
18-year-olds/NNS
,/,
some/DT
not/RB
even/RB
high/JJ
school/NN
graduates/NNS
,/,
and/CC
many/JJ
saving/VBG
money/NN
by/IN
living/VBG
at/IN
home/NN
./.
They/PRP
would/MD
be/VB
doing/VBG
better/RB
financially/RB
under/IN
national/JJ
service/NN
than/IN
many/JJ
taxpayers/NNS
working/VBG
at/IN
the/DT
same/JJ
kinds/NNS
of/IN
jobs/NNS
and/CC
perhaps/RB
supporting/VBG
families/NNS
./.
As/IN
it/PRP
happened/VBD
,/,
political/JJ
resistance/NN
developed/VBD
among/IN
educational/JJ
and/CC
minority/NN
interests/NNS
that/WDT
count/VBP
on/IN
the/DT
present/JJ
education/NN
grant/NN
system/NN
,/,
so/IN
the/DT
national-service/NN
devotees/NNS
decided/VBD
to/TO
abandon/VB
the/DT
supposedly/RB
crucial/JJ
principle/NN
of/IN
``/``
give/VB
in/IN
order/NN
to/TO
get/VB
./.
''/''
Opposition/NN
to/TO
national/JJ
service/NN
from/IN
the/DT
Pentagon/NNP
,/,
which/WDT
wants/VBZ
to/TO
protect/VB
its/PRP$
own/JJ
recruitment/NN
process/NN
,/,
also/RB
led/VBD
to/TO
the/DT
military-service/JJ
option/NN
being/VBG
dropped/VBN
./.
Clearly/RB
,/,
a/DT
new/JJ
rationale/NN
for/IN
national/JJ
service/NN
had/VBD
to/TO
be/VB
cooked/VBN
up/IN
./.
What/WP
better/JJR
place/NN
to/TO
turn/VB
than/IN
Sen./NNP
Edward/NNP
Kennedy/NNP
's/POS
Labor/NNP
Committee/NNP
,/,
that/IN
great/JJ
stove/NN
of/IN
government/NN
expansionism/NN
,/,
where/WRB
many/JJ
a/DT
stagnant/JJ
pot/NN
of/IN
porridge/NN
is/VBZ
kept/VBN
on/IN
the/DT
back/NN
burner/NN
until/IN
it/PRP
can/MD
be/VB
brought/VBN
forward/RB
and/CC
presented/VBD
as/IN
nouvelle/JJ
cuisine/NN
?/.
In/IN
this/DT
case/NN
,/,
the/DT
new/JJ
recipe/NN
for/IN
national/JJ
service/NN
called/VBD
for/IN
throwing/VBG
many/JJ
assorted/JJ
legislative/JJ
leftovers/NNS
into/IN
one/CD
kettle/NN
:/:
a/DT
demonstration/NN
project/NN
for/IN
educational/JJ
aid/NN
the/DT
DLC/NNP
and/CC
Sen./NNP
Sam/NNP
Nunn/NNP
a/DT
similar/JJ
demonstration/NN
program/NN
for/IN
youth/NN
conservation/NN
a/FW
la/FW
Sen./NNP
Chris/NNP
Dodd/NNP
a/DT
competitive/JJ
grants/NNS
program/NN
to/TO
states/NNS
to/TO
spark/VB
youth/NN
and/CC
senior/JJ
citizen/NN
volunteer/NN
projects/NNS
a/DT
Kennedy/NNP
specialty/NN
a/DT
community/NN
service/NN
work-study/NN
program/NN
for/IN
students/NNS
pleasing/JJ
to/TO
the/DT
palate/NN
of/IN
Sen./NNP
Dale/NNP
Bumpers/NNP
,/,
among/IN
others/NNS
engorgement/NN
of/IN
the/DT
VISTA/NNP
volunteer/NN
program/NN
and/CC
the/DT
Retired/NNP
Senior/NNP
Volunteer/NNP
,/,
Foster/NNP
Grandparent/NNP
,/,
and/CC
Senior/NNP
Companion/NNP
programs/NNS
./.
Before/IN
the/DT
menu/NN
is/VBZ
printed/VBN
,/,
the/DT
House/NN
may/MD
add/VB
more/JJR
ingredients/NNS
,/,
also/RB
changing/VBG
the/DT
initial/JJ
price/NN
,/,
now/RB
posted/VBN
at/IN
some/DT
$/$
330/CD
million/CD
./.
It/PRP
is/VBZ
widely/RB
known/VBN
that/IN
``/``
too/RB
many/JJ
cooks/NNS
spoil/VBP
the/DT
broth/NN
,/,
''/''
but/CC
that/DT
wisdom/NN
does/VBZ
not/RB
necessarily/RB
reflect/VB
the/DT
view/NN
of/IN
the/DT
cooks/NNS
,/,
especially/RB
if/IN
they/PRP
are/VBP
senators/NNS
./.
The/DT
``/``
omnibus/JJ
''/''
bill/NN
coming/VBG
out/IN
of/IN
Congress/NNP
may/MD
be/VB
unwholesome/JJ
glop/NN
,/,
but/CC
the/DT
assorted/JJ
chefs/NNS
are/VBP
happy/JJ
and/CC
the/DT
restaurant/NN
is/VBZ
pushing/VBG
the/DT
dish/NN
very/RB
hard/RB
./.
The/DT
aroma/NN
of/IN
patronage/NN
is/VBZ
in/IN
the/DT
air/NN
./.
Is/VBZ
the/DT
voluntary/JJ
sector/NN
so/RB
weak/JJ
that/IN
it/PRP
needs/VBZ
such/JJ
unsolicited/JJ
assistance/NN
?/.
On/IN
the/DT
contrary/NN
,/,
it/PRP
is/VBZ
as/RB
robust/JJ
as/IN
ever/RB
./.
According/VBG
to/TO
the/DT
Gallup/NNP
Poll/NNP
,/,
American/JJ
adults/NNS
contribute/VBP
an/DT
average/NN
of/IN
two/CD
hours/NNS
a/DT
week/NN
of/IN
service/NN
,/,
while/IN
financial/JJ
contributions/NNS
to/TO
charity/NN
in/IN
the/DT
1980s/CD
have/VBP
risen/VBN
30/CD
%/NN
inflation/NN
Even/RB
if/IN
government/NN
does/VBZ
see/VB
various/JJ
``/``
unmet/JJ
needs/NNS
,/,
''/''
national/JJ
service/NN
is/VBZ
not/RB
the/DT
way/NN
to/TO
meet/VB
them/PRP
./.
If/IN
we/PRP
want/VBP
to/TO
support/VB
students/NNS
,/,
we/PRP
might/MD
adopt/VB
the/DT
idea/NN
used/VBN
in/IN
other/JJ
countries/NNS
of/IN
offering/VBG
more/JJR
scholarships/NNS
based/VBN
on/IN
something/NN
called/VBN
``/``
scholarship/NN
,/,
''/''
rather/RB
than/IN
on/IN
the/DT
government/NN
's/POS
idea/NN
of/IN
``/``
service/NN
./.
''/''
Or/CC
we/PRP
might/MD
provide/VB
a/DT
tax/NN
credit/NN
for/IN
working/VBG
students/NNS
./.
What/WP
we/PRP
do/VBP
not/RB
need/VB
to/TO
do/VB
is/VBZ
start/VB
a/DT
war/NN
,/,
and/CC
then/RB
try/VB
to/TO
justify/VB
it/PRP
by/IN
creating/VBG
a/DT
GI/NNP
Bill/NNP
./.
To/TO
the/DT
extent/NN
we/PRP
lack/VBP
manpower/NN
to/TO
staff/VB
menial/JJ
jobs/NNS
in/IN
hospitals/NNS
,/,
for/IN
example/NN
,/,
we/PRP
should/MD
raise/VB
pay/VB
,/,
pursue/VB
labor-saving/JJ
technology/NN
,/,
or/CC
allow/VB
more/RBR
legal/JJ
immigration/NN
,/,
rather/RB
than/IN
overpay/VB
high/JJ
school/NN
graduates/NNS
as/IN
short-term/JJ
workers/NNS
and/CC
cause/VB
resentment/NN
among/IN
permanent/JJ
workers/NNS
paid/VBD
lesser/JJR
amounts/NNS
to/TO
do/VB
the/DT
same/JJ
jobs/NNS
./.
Will/MD
national/JJ
service/NN
,/,
in/IN
the/DT
current/NN
highly/RB
politicized/VBN
and/CC
opportunistic/JJ
form/NN
exert/VB
enough/JJ
appeal/NN
to/TO
get/VB
adopted/VBN
?/.
Not/RB
necessarily/RB
./.
Polls/NNS
show/VBP
wide/JJ
,/,
generalized/JJ
support/NN
for/IN
some/DT
vague/JJ
concept/NN
of/IN
service/NN
,/,
but/CC
the/DT
bill/NN
now/RB
under/IN
discussion/NN
lacks/VBZ
any/DT
passionate/JJ
public/JJ
backing/NN
./.
Nonetheless/RB
,/,
Senate/NNP
Democrats/NNP
are/VBP
organizing/VBG
a/DT
roll/NN
of/IN
supporting/VBG
``/``
associations/NNS
,/,
''/''
``/``
societies/NNS
''/''
and/CC
``/``
councils/NNS
,/,
''/''
some/DT
of/IN
which/WDT
may/MD
hope/VB
to/TO
receive/VB
the/DT
paid/VBN
``/``
volunteers/NNS
./.
''/''
So/IN
far/RB
,/,
the/DT
president/NN
seems/VBZ
ill-disposed/JJ
to/TO
substitute/VB
any/DT
of/IN
the/DT
omnibus/NN
for/IN
his/PRP$
own/JJ
free-standing/JJ
proposal/NN
to/TO
endow/VB
a/DT
``/``
Points/NNPS
of/IN
Light/NNP
''/''
foundation/NN
with/IN
$/$
25/CD
million/CD
to/TO
inform/VB
citizens/NNS
of/IN
all/DT
ages/NNS
and/CC
exhort/VB
them/PRP
to/TO
genuine/JJ
volunteerism/NN
./.
However/RB
,/,
even/RB
this/DT
admirable/JJ
plan/NN
could/MD
become/VB
objectionable/JJ
if/IN
the/DT
White/NNP
House/NNP
gives/VBZ
in/IN
to/TO
congressional/JJ
Democratic/JJ
pressure/NN
to/TO
add/VB
to/TO
the/DT
scope/NN
of/IN
the/DT
president/NN
's/POS
initiative/NN
or/CC
to/TO
involve/VB
the/DT
independent/JJ
foundation/NN
in/IN
``/``
brokering/VBG
''/''
federal/JJ
funds/NNS
for/IN
volunteer/NN
projects/NNS
./.
There/EX
's/VBZ
no/DT
need/NN
for/IN
such/JJ
concessions/NNS
./.
The/DT
omnibus/NN
can/MD
be/VB
defeated/VBN
,/,
the/DT
virus/NN
controlled/VBN
,/,
and/CC
real/JJ
service/NN
protected/VBN
./.
National/JJ
service/NN
,/,
the/DT
utopian/JJ
idea/NN
,/,
still/RB
wo/MD
n't/RB
go/VB
away/RB
then/RB
,/,
of/IN
course/NN
,/,
but/CC
the/DT
millions/NNS
of/IN
knee-socked/JJ
youth/NN
performing/VBG
works/NNS
of/IN
``/``
civic/JJ
content/NN
''/''
will/MD
be/VB
mobilized/VBN
only/RB
in/IN
the/DT
imagination/NN
of/IN
their/PRP$
progenitors/NNS
./.
Mr./NNP
Chapman/NNP
is/VBZ
a/DT
fellow/NN
at/IN
the/DT
Indianapolis-based/JJ
Hudson/NNP
Institute/NNP
./.
This/DT
article/NN
is/VBZ
adapted/VBN
from/IN
remarks/NNS
at/IN
a/DT
Hoover/NNP
Institution/NNP
conference/NN
on/IN
national/JJ
service/NN
,/,
in/IN
which/WDT
Mr./NNP
Szanton/NNP
also/RB
participated/VBD
./.
story/NN
:/:
``/``
Target/NNP
Expenditures/NNPS
Narrowly/NNP
''/''
--/:
WSJ/NNP
Oct./NNP
16/CD
,/,
1989/CD
)/)
Drug/NNP
Emporium/NNP
Inc./NNP
said/VBD
Gary/NNP
Wilber/NNP
,/,
39/CD
years/NNS
old/JJ
,/,
who/WP
had/VBD
been/VBN
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
for/IN
the/DT
past/NN
year/NN
,/,
was/VBD
named/VBN
chief/NN
executive/NN
officer/NN
of/IN
this/DT
drugstore/NN
chain/NN
./.
He/PRP
succeeds/VBZ
his/PRP$
father/NN
,/,
Philip/NNP
T./NNP
Wilber/NNP
,/,
who/WP
founded/VBD
the/DT
company/NN
and/CC
remains/VBZ
chairman/NN
./.
Robert/NNP
E./NNP
Lyons/NNP
III/NNP
,/,
39/CD
,/,
who/WP
headed/VBD
the/DT
company/NN
's/POS
Philadelphia/NNP
region/NN
,/,
was/VBD
appointed/VBN
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
,/,
succeeding/VBG
Gary/NNP
Wilber/NNP
./.
American/NNP
Physicians/NNPS
Service/NNP
Group/NNP
Inc./NNP
said/VBD
it/PRP
purchased/VBD
about/IN
42/CD
%/NN
of/IN
Prime/NNP
Medical/NNP
Services/NNPS
Inc./NNP
for/IN
about/IN
$/$
5/CD
million/CD
from/IN
Texas/NNP
American/NNP
Energy/NNP
Corp/NNP
./.
American/NNP
Physicians/NNPS
said/VBD
it/PRP
also/RB
replaced/VBD
four/CD
Texas/NNP
American/NNP
representatives/NNS
on/IN
Prime/NNP
's/POS
five-member/JJ
board/NN
./.
American/NNP
provides/VBZ
a/DT
variety/NN
of/IN
financial/JJ
services/NNS
to/TO
doctors/NNS
and/CC
hospitals/NNS
./.
Prime/NNP
,/,
based/VBN
in/IN
Bedminster/NNP
,/,
N.J./NNP
,/,
provides/VBZ
management/NN
services/NNS
to/TO
cardiac/JJ
rehabilitation/NN
clinics/NNS
and/CC
diagnostic/JJ
imaging/NN
centers/NNS
./.
For/IN
the/DT
year/NN
ended/VBD
June/NNP
30/CD
,/,
Prime/NNP
had/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
3/CD
million/CD
on/IN
sales/NNS
of/IN
$/$
13.8/CD
million/CD
./.
The/DT
inflation-adjusted/JJ
growth/NN
rate/NN
for/IN
France/NNP
's/POS
gross/JJ
domestic/JJ
product/NN
for/IN
the/DT
second/JJ
quarter/NN
was/VBD
revised/VBN
upward/RB
to/TO
0.8/CD
%/NN
from/IN
the/DT
previous/JJ
three/CD
months/NNS
from/IN
the/DT
initial/JJ
estimate/NN
of/IN
0.7/CD
%/NN
,/,
the/DT
National/NNP
Statistics/NNP
Institute/NNP
said/VBD
./.
The/DT
state/NN
agency/NN
said/VBD
the/DT
latest/JJS
revision/NN
left/VBD
the/DT
growth/NN
rate/NN
for/IN
the/DT
first-quarter/NN
compared/VBN
with/IN
the/DT
previous/JJ
three/CD
months/NNS
unchanged/JJ
at/IN
1.3/CD
%/NN
./.
If/IN
the/DT
economy/NN
continues/VBZ
to/TO
expand/VB
by/IN
0.8/CD
%/NN
a/DT
quarter/NN
for/IN
the/DT
rest/NN
of/IN
the/DT
year/NN
,/,
it/PRP
would/MD
leave/VB
GDP/NNP
growth/NN
for/IN
all/DT
of/IN
1989/CD
at/IN
3/CD
%/NN
,/,
the/DT
institute/NN
said/VBD
./.
That/DT
would/MD
be/VB
down/IN
from/IN
the/DT
3.8/CD
%/NN
rise/NN
posted/VBN
in/IN
1988/CD
./.
The/DT
Canadian/JJ
government/NN
announced/VBD
a/DT
new/JJ
,/,
12-year/JJ
Canada/NNP
Savings/NNP
Bond/NNP
issue/NN
that/WDT
will/MD
yield/VB
investors/NNS
10.5/CD
%/NN
in/IN
the/DT
first/JJ
year/NN
./.
The/DT
annual/JJ
interest/NN
rate/NN
for/IN
each/DT
of/IN
the/DT
next/JJ
11/CD
years/NNS
will/MD
be/VB
set/VBN
each/DT
fall/NN
,/,
when/WRB
details/NNS
of/IN
a/DT
new/JJ
series/NN
are/VBP
released/VBN
./.
Canada/NNP
Savings/NNP
Bonds/NNP
are/VBP
major/JJ
government/NN
instruments/NNS
for/IN
meeting/VBG
its/PRP$
financial/JJ
requirements/NNS
./.
The/DT
government/NN
has/VBZ
about/IN
41.4/CD
billion/CD
Canadian/JJ
dollars/NNS
US$/$
35.2/CD
billion/CD
such/JJ
bonds/NNS
currently/RB
outstanding/JJ
./.
Only/RB
Canadian/JJ
residents/NNS
are/VBP
permitted/VBN
to/TO
buy/VB
Canada/NNP
Savings/NNP
Bonds/NNP
,/,
which/WDT
may/MD
be/VB
redeemed/VBN
any/DT
time/NN
at/IN
face/NN
value/NN
./.
The/DT
bonds/NNS
go/VBP
on/IN
sale/NN
Oct./NNP
19/CD
./.
The/DT
debate/NN
over/IN
National/NNP
Service/NNP
has/VBZ
begun/VBN
again/RB
./.
After/IN
a/DT
decade/NN
in/IN
which/WDT
more/JJR
than/IN
50/CD
localities/NNS
established/VBD
their/PRP$
own/JJ
service/NN
or/CC
conservation/NN
corps/NN
and/CC
dozens/NNS
of/IN
school/NN
systems/NNS
made/VBD
community/NN
service/NN
a/DT
prerequisite/NN
to/TO
high-school/NN
graduation/NN
,/,
the/DT
focus/NN
has/VBZ
shifted/VBN
to/TO
Washington/NNP
./.
At/IN
least/JJS
10/CD
bills/NNS
proposing/VBG
one/CD
or/CC
another/DT
national/JJ
program/NN
were/VBD
introduced/VBN
in/IN
Congress/NNP
this/DT
spring/NN
./.
One/CD
,/,
co-sponsored/JJ
by/IN
Sen./NNP
Sam/NNP
Nunn/NNP
D./NNP
,/,
Ga/NNP
./.
Rep./NNP
Dave/NNP
McCurdy/NNP
D./NNP
,/,
Okla./NNP
federal/JJ
college/NN
subsidies/NNS
to/TO
students/NNS
who/WP
had/VBD
served/VBN
./.
An/DT
omnibus/NN
bill/NN
assembled/VBN
by/IN
Sen./NNP
Edward/NNP
Kennedy/NNP
D./NNP
,/,
Mass./NNP
some/DT
diluted/JJ
Nunn-McCurdy/NNP
provisions/NNS
along/IN
with/IN
proposals/NNS
by/IN
fellow/NN
Democratic/NNP
Sens./NNP
Claiborne/NNP
Pell/NNP
,/,
Barbara/NNP
Mikulski/NNP
and/CC
Christopher/NNP
Dodd/NNP
,/,
has/VBZ
been/VBN
reported/VBN
out/IN
of/IN
the/DT
Senate/NNP
Labor/NNP
Committee/NNP
./.
It/PRP
might/MD
well/RB
win/VB
Senate/NNP
passage/NN
./.
President/NNP
Bush/NNP
has/VBZ
outlined/VBN
his/PRP$
own/JJ
Youth/NNP
Entering/NNP
Service/NNP
(/(
YES/NNP
)/)
plan/NN
,/,
though/IN
its/PRP$
details/NNS
remain/VBP
to/TO
be/VB
specified/VBN
./.
What/WP
is/VBZ
one/NN
to/TO
think/VB
of/IN
all/PDT
this/DT
?/.
Doctrine/NN
and/CC
special/JJ
interests/NNS
govern/VBP
some/DT
responses/NNS
./.
People/NNS
eager/JJ
to/TO
have/VB
youth/NN
``/``
pay/VBP
their/PRP$
dues/NNS
to/TO
society/NN
''/''
favor/VBP
service/NN
proposals/NNS
--/:
preferably/RB
mandatory/JJ
ones/NNS
./.
So/RB
do/VBP
those/DT
who/WP
seek/VBP
a/DT
``/``
re-energized/JJ
concept/NN
of/IN
citizenship/NN
,/,
''/''
a/DT
concept/NN
imposing/VBG
stern/JJ
obligations/NNS
as/RB
well/RB
as/IN
conferring/VBG
rights/NNS
./.
Then/RB
there/EX
are/VBP
instinctive/JJ
opponents/NNS
./.
To/TO
libertarians/NNS
,/,
mandatory/JJ
service/NN
is/VBZ
an/DT
abomination/NN
and/CC
voluntary/JJ
systems/NNS
are/VBP
illegitimate/JJ
uses/NNS
of/IN
tax/NN
money/NN
./.
Devotees/NNS
of/IN
the/DT
market/NN
question/VBP
the/DT
value/NN
of/IN
the/DT
work/NN
national/JJ
service/NN
would/MD
perform/VB
:/:
If/IN
the/DT
market/NN
wo/MD
n't/RB
pay/VB
for/IN
it/PRP
,/,
they/PRP
argue/VBP
,/,
it/PRP
ca/MD
n't/RB
be/VB
worth/JJ
its/PRP$
cost/NN
./.
Elements/NNS
of/IN
the/DT
left/JJ
are/VBP
also/RB
reflexively/RB
opposed/VBN
;/:
they/PRP
see/VBP
service/NN
as/IN
a/DT
cover/NN
for/IN
the/DT
draft/NN
,/,
or/CC
fear/VBP
the/DT
regimentation/NN
of/IN
youth/NN
,/,
or/CC
want/VB
to/TO
see/VB
rights/NNS
enlarged/VBN
,/,
not/RB
obligations/NNS
./.
But/CC
what/WP
about/IN
those/DT
of/IN
us/PRP
whose/WP$
views/NNS
are/VBP
not/RB
predetermined/VBN
by/IN
formula/NN
or/CC
ideology/NN
?/.
How/WRB
should/MD
we/PRP
think/VB
about/IN
national/JJ
service/NN
?/.
Let/VB
's/PRP
begin/VB
by/IN
recognizing/VBG
a/DT
main/JJ
source/NN
of/IN
confusion/NN
--/:
``/``
national/JJ
service/NN
''/''
has/VBZ
no/RB
agreed/VBN
meaning/NN
./.
Would/MD
service/NN
be/VB
voluntary/JJ
or/CC
compulsory/JJ
?/.
Short/JJ
or/CC
long/JJ
?/.
Part-time/JJ
or/CC
full-time/JJ
?/.
Paid/VBN
or/CC
unpaid/JJ
?/.
Would/MD
participants/NNS
live/VB
at/IN
home/NN
and/CC
work/VB
nearby/RB
or/CC
live/VB
in/IN
barracks/NN
and/CC
work/VB
on/IN
public/JJ
lands/NNS
?/.
What/WDT
kinds/NNS
of/IN
work/NN
would/MD
they/PRP
do/VB
?/.
What/WP
does/VBZ
``/``
national/JJ
''/''
mean/VB
?/.
Would/MD
the/DT
program/NN
be/VB
run/VBN
by/IN
the/DT
federal/JJ
government/NN
,/,
by/IN
local/JJ
governments/NNS
,/,
or/CC
by/IN
private/JJ
voluntary/JJ
organizations/NNS
?/.
And/CC
who/WP
would/MD
serve/VB
?/.
Only/JJ
males/NNS
,/,
as/RB
with/IN
the/DT
draft/NN
,/,
or/CC
both/DT
sexes/NNS
?/.
Youth/NN
only/RB
or/CC
all/DT
ages/NNS
?/.
Middle-class/JJ
people/NNS
,/,
or/CC
poor/JJ
people/NNS
,/,
or/CC
a/DT
genuine/JJ
cross-section/NN
?/.
Many/JJ
or/CC
few/JJ
?/.
Those/DT
are/VBP
not/RB
trivial/JJ
questions/NNS
,/,
and/CC
the/DT
label/NN
``/``
national/JJ
service/NN
''/''
answers/VBZ
none/NN
of/IN
them/PRP
./.
Then/RB
how/WRB
should/MD
we/PRP
think/VB
about/IN
national/JJ
service/NN
?/.
As/IN
a/DT
starting/VBG
point/NN
,/,
here/RB
are/VBP
five/CD
propositions/NNS
:/:
1/LS
./.
Consider/VB
the/DT
ingredients/NNS
,/,
not/RB
the/DT
name/NN
./.
Ignore/VB
``/``
national/JJ
service/NN
''/''
in/IN
the/DT
abstract/JJ
;/:
consider/VB
specific/JJ
proposals/NNS
./.
They/PRP
will/MD
differ/VB
in/IN
crucial/JJ
ways/NNS
./.
2/LS
./.
``/``
Service/NN
''/''
should/MD
be/VB
service/NN
./.
As/IN
commonly/RB
understood/VBN
,/,
service/NN
implies/VBZ
sacrifice/NN
./.
It/PRP
involves/VBZ
accepting/VBG
risk/NN
,/,
or/CC
giving/VBG
up/IN
income/NN
,/,
or/CC
deferring/VBG
a/DT
career/NN
./.
It/PRP
follows/VBZ
that/IN
proposals/NNS
like/IN
Nunn-McCurdy/NNP
,/,
whose/WP$
benefits/NNS
to/TO
enrollees/NNS
are/VBP
worth/JJ
some/DT
$/$
17,500/CD
a/DT
year/NN
,/,
do/VBP
not/RB
qualify/VB
./.
There/EX
is/VBZ
a/DT
rationale/NN
for/IN
such/JJ
bills/NNS
:/:
Federal/NNP
subsidies/NNS
to/TO
college/NN
students/NNS
amount/VBP
to/TO
``/``
a/DT
GI/NNP
Bill/NNP
without/IN
the/DT
GI/NNP
''/''
;/:
arguably/RB
those/DT
benefits/NNS
should/MD
be/VB
earned/VBN
,/,
not/RB
given/VBN
./.
But/CC
the/DT
earnings/NNS
exceed/VBP
by/IN
20/CD
%/NN
the/DT
average/JJ
income/NN
of/IN
young/JJ
high-school/NN
graduates/NNS
with/IN
full-time/JJ
jobs/NNS
./.
Why/WRB
call/VB
that/DT
service/NN
?/.
3/LS
./.
Encouragement/NN
is/VBZ
fine/JJ
;/:
compulsion/NN
is/VBZ
not/RB
./.
Compelled/VBN
service/NN
is/VBZ
unconstitutional/JJ
./.
It/PRP
is/VBZ
also/RB
unwise/JJ
and/CC
unenforceable/JJ
./.
Who/WP
will/MD
throw/VB
several/JJ
hundred/CD
thousand/CD
refusers/NNS
in/IN
jail/NN
each/DT
year/NN
?/.
tax/NN
policy/NN
and/CC
in/IN
other/JJ
ways/NNS
the/DT
federal/JJ
government/NN
encourages/VBZ
many/JJ
kinds/NNS
of/IN
behavior/NN
./.
It/PRP
should/MD
also/RB
encourage/VB
service/NN
--/:
preferably/RB
by/IN
all/DT
classes/NNS
and/CC
all/DT
ages/NNS
./.
Its/PRP$
encouragement/NN
should/MD
strengthen/VB
and/CC
not/RB
undercut/VB
the/DT
strong/JJ
tradition/NN
of/IN
volunteering/NN
in/IN
the/DT
U.S./NNP
,/,
should/MD
build/VB
on/IN
the/DT
service/NN
programs/NNS
already/RB
in/IN
existence/NN
,/,
and/CC
should/MD
honor/VB
local/JJ
convictions/NNS
about/IN
which/WDT
tasks/NNS
most/RBS
need/VBP
doing/VBG
./.
4/LS
./.
Good/JJ
programs/NNS
are/VBP
not/RB
cheap/JJ
./.
Enthusiasts/NNS
assume/VBP
that/IN
national/JJ
service/NN
would/MD
get/VB
important/JJ
work/NN
done/VBN
cheaply/RB
:/:
forest/NN
fires/NNS
fought/VBN
,/,
housing/NN
rehabilitated/VBN
,/,
students/NNS
tutored/VBN
,/,
day-care/NN
centers/NNS
staffed/VBN
./.
There/EX
is/VBZ
important/JJ
work/NN
to/TO
be/VB
done/VBN
,/,
and/CC
existing/VBG
service/NN
and/CC
conservation/NN
corps/NN
have/VBP
shown/VBN
that/IN
even/JJ
youths/NNS
who/WP
start/VBP
with/IN
few/JJ
skills/NNS
can/MD
do/VB
much/RB
of/IN
it/PRP
well/RB
--/:
but/CC
not/RB
cheaply/RB
./.
Good/JJ
service/NN
programs/NNS
require/VBP
recruitment/NN
,/,
screening/NN
,/,
training/NN
and/CC
supervision/NN
--/:
all/DT
of/IN
high/JJ
quality/NN
./.
They/PRP
involve/VBP
stipends/NNS
to/TO
participants/NNS
./.
Full-time/JJ
residential/JJ
programs/NNS
also/RB
require/VB
housing/NN
and/CC
full-time/JJ
supervision/NN
;/:
they/PRP
are/VBP
particularly/RB
expensive/JJ
--/:
more/JJR
per/IN
participant/NN
than/IN
a/DT
year/NN
at/IN
Stanford/NNP
or/CC
Yale/NNP
./.
Non-residential/JJ
programs/NNS
are/VBP
cheaper/JJR
,/,
but/CC
good/JJ
ones/NNS
still/RB
come/VB
to/TO
some/DT
$/$
10,000/CD
a/DT
year/NN
./.
Are/VBP
they/PRP
worth/JJ
that/DT
?/.
Evaluations/NNS
suggest/VBP
that/IN
good/JJ
ones/NNS
are/VBP
--/:
especially/RB
so/IN
if/IN
the/DT
effects/NNS
on/IN
participants/NNS
are/VBP
counted/VBN
./.
But/CC
the/DT
calculations/NNS
are/VBP
challengeable/JJ
./.
5/LS
./.
Underclass/NNS
youth/NN
are/VBP
a/DT
special/JJ
concern/NN
./.
Are/VBP
such/JJ
expenditures/NNS
worthwhile/JJ
,/,
then/RB
?/.
Yes/UH
,/,
if/IN
targeted/VBN
./.
People/NNS
of/IN
all/DT
ages/NNS
and/CC
all/DT
classes/NNS
should/MD
be/VB
encouraged/VBN
to/TO
serve/VB
,/,
but/CC
there/EX
are/VBP
many/JJ
ways/NNS
for/IN
middle-class/JJ
kids/NNS
,/,
and/CC
their/PRP$
elders/NNS
,/,
to/TO
serve/VB
at/IN
little/JJ
public/JJ
cost/NN
./.
They/PRP
can/MD
volunteer/VB
at/IN
any/DT
of/IN
thousands/NNS
of/IN
non-profit/JJ
institutions/NNS
,/,
or/CC
participate/VB
in/IN
service/NN
programs/NNS
required/VBN
by/IN
high/JJ
schools/NNS
or/CC
encouraged/VBN
by/IN
colleges/NNS
or/CC
employers/NNS
./.
Underclass/JJ
youth/NN
do/VBP
n't/RB
have/VB
those/DT
opportunities/NNS
./.
They/PRP
are/VBP
not/RB
enrolled/VBN
in/IN
high/JJ
school/NN
or/CC
college/NN
./.
They/PRP
are/VBP
unlikely/JJ
to/TO
be/VB
employed/VBN
./.
And/CC
they/PRP
have/VBP
grown/VBN
up/IN
in/IN
unprecedentedly/RB
grim/JJ
circumstances/NNS
,/,
among/IN
family/NN
structures/NNS
breaking/VBG
down/IN
,/,
surrounded/VBN
by/IN
self-destructive/JJ
behaviors/NNS
and/CC
bleak/JJ
prospects/NNS
./.
But/CC
many/JJ
of/IN
them/PRP
can/MD
be/VB
quite/RB
profoundly/RB
reoriented/VBN
by/IN
productive/JJ
and/CC
disciplined/VBN
service/NN
./.
Some/DT
wo/MD
n't/RB
accept/VB
the/DT
discipline/NN
;/:
others/NNS
drop/VBP
out/IN
for/IN
other/JJ
reasons/NNS
./.
But/CC
some/DT
whom/WP
nothing/NN
else/RB
is/VBZ
reaching/VBG
are/VBP
transformed/VBN
./.
Learning/VBG
skills/NNS
,/,
producing/VBG
something/NN
cooperatively/RB
,/,
feeling/VBG
useful/JJ
,/,
they/PRP
are/VBP
no/RB
longer/RB
dependent/JJ
--/:
others/NNS
now/RB
depend/VBP
on/IN
them/PRP
./.
Even/RB
if/IN
it/PRP
is/VBZ
cheaper/JJR
to/TO
build/VB
playgrounds/NNS
or/CC
paint/VB
apartments/NNS
or/CC
plant/VB
dune-grass/NN
with/IN
paid/VBN
professionals/NNS
,/,
the/DT
effects/NNS
on/IN
the/DT
young/JJ
people/NNS
providing/VBG
those/DT
services/NNS
alter/VBP
the/DT
calculation/NN
./.
Strictly/RB
speaking/VBG
,/,
these/DT
youth/NN
are/VBP
not/RB
performing/VBG
service/NN
./.
They/PRP
are/VBP
giving/VBG
up/IN
no/DT
income/NN
,/,
deferring/VBG
no/DT
careers/NNS
,/,
incurring/VBG
no/DT
risk/NN
./.
But/CC
they/PRP
believe/VBP
themselves/PRP
to/TO
be/VB
serving/VBG
,/,
and/CC
they/PRP
begin/VBP
to/TO
respect/VB
themselves/PRP
others/NNS
control/NN
of/IN
their/PRP$
lives/NNS
,/,
to/TO
think/VB
of/IN
the/DT
future/NN
./.
That/DT
is/VBZ
a/DT
service/NN
to/TO
the/DT
nation/NN
./.
It/PRP
is/VBZ
what/WP
federal/JJ
support/NN
should/MD
try/VB
hardest/RBS
to/TO
achieve/VB
./.
Mr./NNP
Szanton/NNP
,/,
a/DT
Carter/NNP
administration/NN
budget/NN
official/NN
,/,
heads/VBZ
his/PRP$
own/JJ
Washington-based/JJ
strategic/JJ
planning/NN
firm/NN
./.
He/PRP
is/VBZ
a/DT
co-author/NN
of/IN
``/``
National/NNP
Service/NNP
:/:
What/WP
Would/MD
It/PRP
Mean/VB
?/.
''/''
(/(
Lexington/NNP
Books/NNPS
,/,
1986/CD
story/NN
:/:
``/``
Put/VB
Brakes/NNS
on/IN
the/DT
Omnibus/NN
''/''
--/:
WSJ/NNP
Oct./NNP
16/CD
,/,
1989/CD
)/)
Government/NNP
officials/NNS
here/RB
and/CC
in/IN
other/JJ
countries/NNS
laid/VBD
plans/NNS
through/IN
the/DT
weekend/NN
to/TO
head/VB
off/IN
a/DT
Monday/NNP
market/NN
meltdown/NN
--/:
but/CC
went/VBD
out/IN
of/IN
their/PRP$
way/NN
to/TO
keep/VB
their/PRP$
moves/NNS
quiet/JJ
./.
Federal/NNP
Reserve/NNP
Chairman/NNP
Alan/NNP
Greenspan/NNP
was/VBD
on/IN
the/DT
telephones/NNS
,/,
making/VBG
it/PRP
clear/JJ
to/TO
officials/NNS
in/IN
the/DT
U.S./NNP
and/CC
abroad/RB
that/IN
the/DT
Fed/NNP
was/VBD
prepared/VBN
to/TO
inject/VB
massive/JJ
amounts/NNS
of/IN
money/NN
into/IN
the/DT
banking/NN
system/NN
,/,
as/IN
it/PRP
did/VBD
in/IN
October/NNP
1987/CD
,/,
if/IN
the/DT
action/NN
were/VBD
needed/VBN
to/TO
prevent/VB
a/DT
financial/JJ
crisis/NN
./.
And/CC
at/IN
the/DT
Treasury/NNP
,/,
Secretary/NNP
Nicholas/NNP
Brady/NNP
talked/VBD
with/IN
friends/NNS
and/CC
associates/NNS
on/IN
Wall/NNP
Street/NNP
while/IN
Assistant/NNP
Secretary/NNP
David/NNP
Mullins/NNP
carefully/RB
analyzed/VBD
data/NNS
on/IN
the/DT
Friday/NNP
market/NN
plunge/NN
./.
But/CC
the/DT
officials/NNS
feared/VBD
that/IN
any/DT
public/JJ
announcements/NNS
would/MD
only/RB
increase/VB
market/NN
jitters/NNS
./.
In/IN
addition/NN
,/,
officials/NNS
at/IN
the/DT
Fed/NNP
and/CC
in/IN
the/DT
Bush/NNP
administration/NN
decided/VBD
that/IN
avoiding/VBG
overt/JJ
actions/NNS
and/CC
statements/NNS
over/IN
the/DT
weekend/NN
would/MD
give/VB
them/PRP
more/JJR
strength/NN
and/CC
flexibility/NN
should/MD
Friday/NNP
's/POS
market/NN
drop/NN
turn/VB
into/IN
this/DT
morning/NN
's/POS
rout/NN
./.
``/``
The/DT
disadvantage/NN
at/IN
this/DT
point/NN
is/VBZ
that/DT
anything/NN
you/PRP
do/VBP
that/DT
looks/VBZ
like/IN
you/PRP
are/VBP
doing/VBG
too/RB
much/RB
tends/VBZ
to/TO
reinforce/VB
a/DT
sense/NN
of/IN
crisis/NN
,/,
''/''
said/VBD
one/CD
government/NN
official/NN
,/,
insisting/VBG
on/IN
anonymity/NN
./.
The/DT
Fed/NNP
's/POS
efforts/NNS
at/IN
secrecy/NN
were/VBD
partly/RB
foiled/VBN
Sunday/NNP
morning/NN
,/,
when/WRB
both/PDT
the/DT
New/NNP
York/NNP
Times/NNP
and/CC
the/DT
Washington/NNP
Post/NNP
carried/VBD
stories/NNS
quoting/VBG
a/DT
senior/JJ
Fed/NNP
official/NN
saying/VBG
the/DT
central/JJ
bank/NN
was/VBD
prepared/VBN
to/TO
pour/VB
cash/NN
into/IN
the/DT
banking/NN
system/NN
Monday/NNP
morning/NN
./.
Fed/NNP
Chairman/NNP
Greenspan/NNP
was/VBD
surprised/VBN
by/IN
both/DT
stories/NNS
,/,
according/VBG
to/TO
knowledgeable/JJ
sources/NNS
,/,
and/CC
insisted/VBD
he/PRP
had/VBD
n't/RB
authorized/VBN
any/DT
public/JJ
comment/NN
./.
Nevertheless/RB
,/,
Fed/NNP
officials/NNS
acknowledged/VBD
the/DT
stories/NNS
were/VBD
reasonably/RB
accurate/JJ
portrayals/NNS
of/IN
the/DT
central/JJ
bank/NN
's/POS
game/NN
plan/NN
./.
It/PRP
is/VBZ
prepared/VBN
to/TO
assume/VB
the/DT
same/JJ
role/NN
it/PRP
played/VBD
in/IN
October/NNP
1987/CD
,/,
providing/VBG
money/NN
to/TO
the/DT
markets/NNS
if/IN
necessary/JJ
to/TO
keep/VB
the/DT
financial/JJ
system/NN
afloat/RB
./.
The/DT
Fed/NNP
provides/VBZ
money/NN
to/TO
the/DT
banking/NN
system/NN
by/IN
buying/VBG
government/NN
securities/NNS
from/IN
financial/JJ
institutions/NNS
./.
The/DT
reticence/NN
of/IN
federal/JJ
officials/NNS
was/VBD
evident/JJ
in/IN
the/DT
appearance/NN
Sunday/NNP
of/IN
Budget/NNP
Director/NNP
Richard/NNP
Darman/NNP
on/IN
ABC/NNP
's/POS
``/``
This/DT
Week/NNP
./.
''/''
``/``
Secretary/NNP
of/IN
the/DT
Treasury/NNP
Brady/NNP
and/CC
Chairman/NNP
Greenspan/NNP
and/CC
the/DT
chairman/NN
of/IN
the/DT
SEC/NNP
and/CC
others/NNS
have/VBP
been/VBN
in/IN
close/JJ
contact/NN
./.
I/PRP
'm/VBP
sure/JJ
they/PRP
'll/MD
do/VB
what/WP
's/VBZ
right/JJ
,/,
what/WP
's/VBZ
prudent/JJ
,/,
what/WP
's/VBZ
sensible/JJ
,/,
''/''
he/PRP
said/VBD
./.
When/WRB
it/PRP
was/VBD
suggested/VBN
his/PRP$
comment/NN
was/VBD
a/DT
``/``
non-answer/JJ
,/,
''/''
Mr./NNP
Darman/NNP
replied/VBD
:/:
``/``
It/PRP
is/VBZ
a/DT
non-answer/NN
./.
But/CC
,/,
in/IN
this/DT
context/NN
,/,
that/DT
's/VBZ
the/DT
smart/JJ
thing/NN
to/TO
do/VB
./.
''/''
At/IN
the/DT
Treasury/NNP
,/,
Secretary/NNP
Brady/NNP
issued/VBD
a/DT
statement/NN
minimizing/VBG
the/DT
stock/NN
market/NN
's/POS
drop/NN
./.
``/``
Today/NN
's/POS
stock/NN
market/NN
decline/NN
does/VBZ
n't/RB
signal/VB
any/DT
fundamental/JJ
change/NN
in/IN
the/DT
condition/NN
of/IN
the/DT
economy/NN
,/,
''/''
he/PRP
said/VBD
./.
``/``
The/DT
economy/NN
remains/VBZ
well-balanced/JJ
,/,
and/CC
the/DT
outlook/NN
is/VBZ
for/IN
continued/VBN
moderate/JJ
growth/NN
./.
''/''
But/CC
administration/NN
officials/NNS
conceded/VBD
that/IN
Friday/NNP
's/POS
drop/NN
carried/VBD
the/DT
chance/NN
of/IN
further/JJ
declines/NNS
this/DT
week/NN
./.
``/``
One/CD
possibility/NN
is/VBZ
that/IN
this/DT
is/VBZ
a/DT
surgical/JJ
setback/NN
,/,
reasonably/RB
limited/VBN
in/IN
its/PRP$
breadth/NN
,/,
and/CC
not/RB
a/DT
major/JJ
problem/NN
,/,
''/''
said/VBD
one/CD
senior/JJ
administration/NN
official/NN
,/,
who/WP
also/RB
asked/VBD
that/IN
he/PRP
not/RB
be/VB
named/VBN
./.
``/``
The/DT
other/JJ
is/VBZ
that/IN
we/PRP
see/VBP
another/DT
major/JJ
disaster/NN
,/,
like/IN
two/CD
years/NNS
ago/IN
./.
I/PRP
think/VBP
that/DT
's/VBZ
less/RBR
likely/JJ
./.
''/''
Nevertheless/RB
,/,
Fed/NNP
Chairman/NNP
Greenspan/NNP
and/CC
Vice/NNP
Chairman/NNP
Manuel/NNP
Johnson/NNP
were/VBD
in/IN
their/PRP$
offices/NNS
Sunday/NNP
evening/NN
,/,
monitoring/VBG
events/NNS
as/IN
they/PRP
unfolded/VBD
in/IN
markets/NNS
around/IN
the/DT
world/NN
./.
The/DT
action/NN
was/VBD
expected/VBN
to/TO
begin/VB
with/IN
the/DT
opening/NN
of/IN
the/DT
New/NNP
Zealand/NNP
foreign/JJ
exchange/NN
markets/NNS
at/IN
5/CD
p.m./NN
EST/NNP
--/:
when/WRB
stocks/NNS
there/RB
plunged/VBD
--/:
and/CC
to/TO
continue/VB
as/IN
the/DT
trading/NN
day/NN
began/VBD
later/RB
in/IN
the/DT
evening/NN
in/IN
Tokyo/NNP
and/CC
through/IN
early/RB
this/DT
morning/NN
in/IN
Europe/NNP
./.
Both/PDT
the/DT
Treasury/NNP
and/CC
the/DT
Fed/NNP
planned/VBD
to/TO
keep/VB
market/NN
rooms/NNS
operating/VBG
throughout/IN
the/DT
night/NN
to/TO
monitor/VB
the/DT
developments/NNS
./.
In/IN
Tokyo/NNP
,/,
share/NN
prices/NNS
dropped/VBD
sharply/RB
by/IN
1.7/CD
%/NN
in/IN
early/JJ
Monday/NNP
morning/NN
trading/NN
./.
After/IN
the/DT
initial/JJ
slide/NN
,/,
the/DT
market/NN
appeared/VBD
to/TO
be/VB
turning/VBG
around/IN
but/CC
by/IN
early/JJ
afternoon/NN
was/VBD
headed/VBN
lower/JJR
./.
In/IN
the/DT
Bush/NNP
administration/NN
,/,
the/DT
lead/NN
is/VBZ
being/VBG
taken/VBN
by/IN
Treasury/NNP
Secretary/NNP
Brady/NNP
,/,
Undersecretary/NNP
Robert/NNP
Glauber/NNP
and/CC
Assistant/NNP
Secretary/NNP
Mullins/NNP
./.
The/DT
three/CD
men/NNS
worked/VBD
together/RB
on/IN
the/DT
so-called/JJ
Brady/NNP
Commission/NNP
,/,
headed/VBN
by/IN
Mr./NNP
Brady/NNP
,/,
which/WDT
was/VBD
established/VBN
after/IN
the/DT
1987/CD
crash/NN
to/TO
examine/VB
the/DT
market/NN
's/POS
collapse/NN
./.
As/IN
a/DT
result/NN
they/PRP
have/VBP
extensive/JJ
knowledge/NN
in/IN
financial/JJ
markets/NNS
,/,
and/CC
financial/JJ
market/NN
crises/NNS
./.
Mr./NNP
Brady/NNP
was/VBD
at/IN
the/DT
White/NNP
House/NNP
Friday/NNP
afternoon/NN
when/WRB
the/DT
stock/NN
market/NN
's/POS
decline/NN
began/VBD
./.
He/PRP
was/VBD
quickly/RB
on/IN
the/DT
phone/NN
with/IN
Mr./NNP
Mullins/NNP
,/,
who/WP
in/IN
turn/NN
was/VBD
talking/VBG
with/IN
the/DT
chairmen/NNS
of/IN
the/DT
New/NNP
York/NNP
and/CC
Chicago/NNP
exchanges/NNS
./.
Later/RB
,/,
Mr./NNP
Brady/NNP
phoned/VBD
Mr./NNP
Greenspan/NNP
,/,
SEC/NNP
Chairman/NNP
Richard/NNP
Breeden/NNP
and/CC
numerous/JJ
contacts/NNS
in/IN
New/NNP
York/NNP
and/CC
overseas/RB
./.
Aides/NNS
say/VBP
he/PRP
continued/VBD
to/TO
work/VB
the/DT
phones/NNS
through/IN
the/DT
weekend/NN
./.
Administration/NN
officials/NNS
say/VBP
President/NNP
Bush/NNP
was/VBD
briefed/VBN
throughout/IN
Friday/NNP
afternoon/NN
and/CC
evening/NN
,/,
even/RB
after/IN
leaving/VBG
for/IN
Camp/NNP
David/NNP
./.
He/PRP
had/VBD
frequent/JJ
telephone/NN
consultations/NNS
with/IN
Mr./NNP
Brady/NNP
and/CC
Michael/NNP
Boskin/NNP
,/,
chairman/NN
of/IN
the/DT
counsel/NN
of/IN
economic/JJ
advisers/NNS
./.
Government/NNP
officials/NNS
tried/VBD
throughout/IN
the/DT
weekend/NN
to/TO
render/VB
a/DT
business-as-usual/JJ
appearance/NN
in/IN
order/NN
to/TO
avoid/VB
any/DT
sense/NN
of/IN
panic/NN
./.
Treasury/NNP
Undersecretary/NNP
David/NNP
Mulford/NNP
,/,
for/IN
instance/NN
,/,
was/VBD
at/IN
a/DT
meeting/NN
of/IN
the/DT
Business/NNP
Council/NNP
in/IN
Hot/NNP
Springs/NNPS
,/,
Va./NNP
,/,
when/WRB
the/DT
stock/NN
market/NN
fell/VBD
,/,
and/CC
remained/VBD
there/RB
through/IN
the/DT
following/VBG
day/NN
./.
And/CC
as/IN
of/IN
last/JJ
night/NN
,/,
Fed/NNP
Chairman/NNP
Greenspan/NNP
had/VBD
n't/RB
canceled/VBN
his/PRP$
plans/NNS
to/TO
address/VB
the/DT
American/NNP
Bankers/NNPS
Association/NNP
convention/NN
in/IN
Washington/NNP
at/IN
10/CD
a.m./NN
this/DT
morning/NN
./.
Ironically/RB
,/,
Mr./NNP
Greenspan/NNP
was/VBD
scheduled/VBN
to/TO
address/VB
the/DT
same/JJ
convention/NN
in/IN
Dallas/NNP
on/IN
Oct./NNP
20/CD
,/,
1987/CD
./.
He/PRP
flew/VBD
to/TO
Dallas/NNP
on/IN
Oct./NNP
19/CD
,/,
when/WRB
the/DT
market/NN
plummeted/VBD
508/CD
points/NNS
,/,
but/CC
then/RB
turned/VBD
around/IN
the/DT
next/JJ
morning/NN
and/CC
returned/VBD
to/TO
Washington/NNP
without/IN
delivering/VBG
his/PRP$
speech/NN
./.
story/NN
:/:
``/``
Abreast/NNP
of/IN
the/DT
Market/NNP
:/:
Special/JJ
Steps/NNS
Did/VBD
n't/RB
Cool/VB
Fever/NN
to/TO
Sell/VB
''/''
--/:
WSJ/NNP
Oct./NNP
16/CD
,/,
1989/CD
)/)
Following/VBG
is/VBZ
a/DT
weekly/JJ
listing/NN
of/IN
unadited/JJ
net/JJ
asset/NN
values/NNS
of/IN
publicly/RB
traded/VBN
investment/NN
fund/NN
shares/NNS
,/,
reported/VBN
by/IN
the/DT
companies/NNS
as/IN
of/IN
Friday/NNP
's/POS
close/NN
./.
Also/RB
shown/VBN
is/VBZ
the/DT
closing/NN
listed/VBD
market/NN
price/NN
or/CC
a/DT
dealer-to-dealer/JJ
asked/VBN
price/NN
of/IN
each/DT
fund/NN
's/POS
shares/NNS
,/,
with/IN
the/DT
percentage/NN
of/IN
difference/NN
./.
b/SYM
-/:
As/IN
of/IN
Thursday/NNP
's/POS
close/NN
./.
c/SYM
-/:
Translated/VBN
at/IN
Commercial/NNP
Rand/NNP
exchange/NN
rate/NN
./.
e/SYM
-/:
In/IN
Canadian/JJ
dollars/NNS
./.
f/SYM
-/:
As/IN
of/IN
Wednesday/NNP
's/POS
close/NN
./.
g/SYM
-/:
10.06.89/CD
NAV:22.15/NN
./.
z/SYM
-/:
Not/RB
available/JJ
./.
Put/VB
down/IN
that/DT
phone/NN
./.
Walk/VB
around/IN
the/DT
room/NN
;/:
take/VB
two/CD
deep/JJ
breaths/NNS
./.
Resist/VB
the/DT
urge/NN
to/TO
call/VB
your/PRP$
broker/NN
and/CC
sell/VB
all/PDT
your/PRP$
stocks/NNS
./.
That/DT
's/VBZ
the/DT
advice/NN
of/IN
most/JJS
investment/NN
professionals/NNS
after/IN
Friday/NNP
's/POS
190-point/JJ
drop/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
./.
No/DT
one/NN
can/MD
say/VB
for/IN
sure/JJ
what/WP
will/MD
happen/VB
today/NN
./.
And/CC
investment/NN
pros/NNS
are/VBP
divided/VBN
on/IN
whether/IN
stocks/NNS
will/MD
perform/VB
well/RB
or/CC
badly/RB
in/IN
the/DT
next/JJ
six/CD
months/NNS
./.
But/CC
they/PRP
're/VBP
nearly/RB
unanimous/JJ
on/IN
one/CD
point/NN
:/:
Do/VB
n't/RB
sell/VB
into/IN
a/DT
panic/NN
./.
Investors/NNS
who/WP
sold/VBD
everything/NN
after/IN
the/DT
crash/NN
of/IN
1987/CD
lived/VBD
to/TO
regret/VB
it/PRP
./.
Even/RB
after/IN
Friday/NNP
's/POS
plunge/NN
,/,
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
was/VBD
48/CD
%/NN
above/IN
where/WRB
it/PRP
landed/VBD
on/IN
Oct./NNP
19/CD
two/CD
years/NNS
ago/IN
./.
Panic/NN
selling/NN
also/RB
was/VBD
unwise/JJ
during/IN
other/JJ
big/JJ
declines/NNS
in/IN
the/DT
past/NN
./.
The/DT
crash/NN
of/IN
1929/CD
was/VBD
followed/VBN
by/IN
a/DT
substantial/JJ
recovery/NN
before/IN
the/DT
great/JJ
Depression/NN
and/CC
awful/JJ
bear/NN
market/NN
of/IN
the/DT
1930s/CD
began/VBD
./.
The/DT
``/``
October/NNP
massacres/NNS
''/''
of/IN
1978/CD
and/CC
1979/CD
were/VBD
scary/JJ
,/,
but/CC
did/VBD
n't/RB
lead/VB
to/TO
severe/JJ
or/CC
sustained/VBN
downturns/NNS
./.
Indeed/RB
,/,
some/DT
pros/NNS
see/VBP
Friday/NNP
's/POS
plunge/NN
,/,
plus/CC
any/DT
further/JJ
damage/NN
that/WDT
might/MD
occur/VB
early/RB
this/DT
week/NN
,/,
as/IN
a/DT
chance/NN
for/IN
bargain/NN
hunting/NN
./.
``/``
There/EX
has/VBZ
been/VBN
a/DT
lot/NN
of/IN
emotional/JJ
selling/NN
that/WDT
presents/VBZ
a/DT
nice/JJ
buying/NN
opportunity/NN
if/IN
you/PRP
've/VBP
got/VBN
the/DT
cash/NN
,/,
''/''
says/VBZ
Stephen/NNP
B./NNP
Timbers/NNP
,/,
chief/NN
investment/NN
officer/NN
of/IN
Chicago-based/JJ
Kemper/NNP
Financial/NNP
Services/NNPS
Inc/NNP
./.
But/CC
most/JJS
advisers/NNS
think/VBP
the/DT
immediate/JJ
course/NN
for/IN
individual/JJ
investors/NNS
should/MD
be/VB
to/TO
stand/VB
pat/NN
./.
``/``
When/WRB
you/PRP
see/VBP
a/DT
runaway/JJ
train/NN
,/,
''/''
says/VBZ
Steve/NNP
Janachowski/NNP
,/,
partner/NN
in/IN
the/DT
San/NNP
Francisco/NNP
investment/NN
advisory/NN
firm/NN
Brouwer/NNP
&/CC
Janachowski/NNP
,/,
``/``
you/PRP
wait/VBP
for/IN
the/DT
train/NN
to/TO
stop/VB
./.
''/''
Even/RB
for/IN
people/NNS
who/WP
expect/VBP
a/DT
bear/NN
market/NN
in/IN
coming/VBG
months/NNS
--/:
and/CC
a/DT
sizable/JJ
number/NN
of/IN
money/NN
managers/NNS
and/CC
market/NN
pundits/NNS
do/VBP
--/:
the/DT
advice/NN
is/VBZ
:/:
Wait/VB
for/IN
the/DT
market/NN
to/TO
bounce/VB
back/RB
,/,
and/CC
sell/VB
shares/NNS
gradually/RB
during/IN
rallies/NNS
./.
The/DT
best/JJS
thing/NN
individual/NN
investors/NNS
can/MD
do/VB
is/VBZ
``/``
just/RB
sit/VBP
tight/RB
,/,
''/''
says/VBZ
Marshall/NNP
B./NNP
Front/NNP
,/,
executive/JJ
vice/NN
president/NN
and/CC
head/NN
of/IN
investment/NN
counseling/NN
at/IN
Stein/NNP
Roe/NNP
&/CC
Farnham/NNP
Inc./NNP
,/,
a/DT
Chicago-based/JJ
investment/NN
counseling/VBG
firm/NN
that/WDT
manages/VBZ
about/IN
$/$
18/CD
billion/CD
./.
On/IN
the/DT
one/CD
hand/NN
,/,
Mr./NNP
Front/NNP
says/VBZ
,/,
it/PRP
would/MD
be/VB
misguided/VBN
to/TO
sell/VB
into/IN
``/``
a/DT
classic/JJ
panic/NN
./.
''/''
On/IN
the/DT
other/JJ
hand/NN
,/,
it/PRP
's/VBZ
not/RB
necessarily/RB
a/DT
good/JJ
time/NN
to/TO
jump/VB
in/IN
and/CC
buy/VB
./.
``/``
This/DT
is/VBZ
all/DT
emotion/NN
right/RB
now/RB
,/,
and/CC
when/WRB
emotion/NN
starts/VBZ
to/TO
run/VB
,/,
it/PRP
can/MD
run/VB
further/RB
than/IN
anyone/NN
anticipates/VBZ
,/,
''/''
he/PRP
said/VBD
./.
``/``
So/IN
it/PRP
's/VBZ
more/RBR
prudent/JJ
to/TO
wait/VB
and/CC
see/VB
how/WRB
things/NNS
stabilize/VBP
./.
''/''
Roger/NNP
Ibbotson/NNP
,/,
professor/NN
of/IN
finance/NN
at/IN
Yale/NNP
University/NNP
and/CC
head/NN
of/IN
the/DT
market/NN
information/NN
firm/NN
Ibbotson/NNP
Associates/NNPS
Inc./NNP
,/,
says/VBZ
,/,
``/``
My/PRP$
real/JJ
advice/NN
would/MD
be/VB
to/TO
just/RB
ride/VB
through/IN
it/PRP
./.
Generally/RB
,/,
it/PRP
is/VBZ
n't/RB
wise/JJ
to/TO
be/VB
in/IN
and/CC
out/IN
''/''
of/IN
the/DT
stock/NN
market/NN
./.
Mr./NNP
Ibbotson/NNP
thinks/VBZ
that/IN
this/DT
week/NN
is/VBZ
``/``
going/VBG
to/TO
be/VB
a/DT
roller-coaster/NN
week/NN
./.
''/''
But/CC
he/PRP
also/RB
thinks/VBZ
it/PRP
is/VBZ
``/``
a/DT
good/JJ
week/NN
to/TO
consider/VB
buying/VBG
./.
''/''
John/NNP
Snyder/NNP
,/,
former/JJ
president/NN
of/IN
the/DT
Los/NNP
Angeles/NNP
chapter/NN
of/IN
the/DT
National/NNP
Association/NNP
of/IN
Investors/NNPS
Corp./NNP
,/,
an/DT
organization/NN
of/IN
investment/NN
clubs/NNS
and/CC
individual/JJ
investors/NNS
,/,
says/VBZ
his/PRP$
fellow/NN
club/NN
members/NNS
did/VBD
n't/RB
sell/NN
in/IN
the/DT
crash/NN
of/IN
1987/CD
,/,
and/CC
see/VB
no/DT
reason/NN
to/TO
sell/VB
now/RB
./.
``/``
We/PRP
're/VBP
dedicated/VBN
long-term/JJ
investors/NNS
,/,
not/RB
traders/NNS
,/,
''/''
he/PRP
says/VBZ
./.
``/``
We/PRP
understand/VBP
panics/NNS
and/CC
euphoria/NN
./.
And/CC
we/PRP
hope/VBP
to/TO
take/VB
advantage/NN
of/IN
panics/NNS
and/CC
buy/VB
stocks/NNS
when/WRB
they/PRP
plunge/VBP
./.
''/''
One/CD
camp/NN
of/IN
investment/NN
pros/NNS
sees/VBZ
what/WP
happened/VBD
Friday/NNP
as/IN
an/DT
opportunity/NN
./.
Over/IN
the/DT
next/JJ
days/NNS
and/CC
weeks/NNS
,/,
they/PRP
say/VBP
,/,
investors/NNS
should/MD
look/VB
for/IN
stocks/NNS
to/TO
buy/VB
./.
Friday/NNP
's/POS
action/NN
``/``
was/VBD
an/DT
old-fashioned/JJ
panic/NN
,/,
''/''
says/VBZ
Alfred/NNP
Goldman/NNP
,/,
director/NN
of/IN
technical/JJ
market/NN
analysis/NN
for/IN
A.G./NNP
Edwards/NNP
&/CC
Sons/NNPS
in/IN
St./NNP
Louis/NNP
./.
``/``
Stocks/NNS
were/VBD
being/VBG
thrown/VBN
out/IN
of/IN
windows/NNS
at/IN
any/DT
price/NN
./.
''/''
His/PRP$
advice/NN
:/:
``/``
You/PRP
ought/MD
to/TO
be/VB
there/RB
with/IN
a/DT
basket/NN
catching/VBG
them/PRP
./.
''/''
James/NNP
Craig/NNP
,/,
portfolio/NN
manager/NN
for/IN
the/DT
Denver-based/JJ
Janus/NNP
Fund/NNP
,/,
which/WDT
has/VBZ
one/CD
of/IN
the/DT
industry/NN
's/POS
better/JJR
track/NN
records/NNS
,/,
started/VBD
his/PRP$
buying/NN
during/IN
Friday/NNP
's/POS
plunge/NN
./.
Stocks/NNS
such/JJ
as/IN
Hershey/NNP
Foods/NNPS
Corp./NNP
,/,
Wal-Mart/NNP
Stores/NNPS
Inc./NNP
,/,
American/NNP
International/NNP
Group/NNP
Inc./NNP
and/CC
Federal/NNP
National/NNP
Mortgage/NNP
Association/NNP
became/VBD
such/JJ
bargains/NNS
that/IN
he/PRP
could/MD
n't/RB
resist/VB
them/PRP
,/,
he/PRP
says/VBZ
./.
And/CC
Mr./NNP
Craig/NNP
expects/VBZ
to/TO
pick/VB
up/IN
more/JJR
shares/NNS
today/NN
./.
``/``
It/PRP
will/MD
be/VB
chaotic/JJ
at/IN
first/JJ
,/,
but/CC
I/PRP
would/MD
not/RB
be/VB
buying/VBG
if/IN
I/PRP
thought/VBD
we/PRP
were/VBD
headed/VBN
for/IN
real/JJ
trouble/NN
,/,
''/''
he/PRP
says/VBZ
./.
He/PRP
argues/VBZ
that/IN
stocks/NNS
are/VBP
reasonably/RB
valued/VBN
now/RB
,/,
and/CC
that/IN
interest/NN
rates/NNS
are/VBP
lower/JJR
now/RB
than/IN
in/IN
the/DT
fall/NN
of/IN
1987/CD
./.
Mr./NNP
Front/NNP
of/IN
Stein/NNP
Roe/NNP
suggests/VBZ
that/IN
any/DT
buying/NN
should/MD
``/``
concentrate/VB
in/IN
stocks/NNS
that/WDT
have/VBP
lagged/VBN
the/DT
market/NN
on/IN
the/DT
up/IN
side/NN
,/,
or/CC
stocks/NNS
that/WDT
have/VBP
been/VBN
beaten/VBN
down/IN
a/DT
lot/NN
more/RBR
than/IN
the/DT
market/NN
in/IN
this/DT
correction/NN
./.
''/''
His/PRP$
firm/NN
favors/VBZ
selected/VBN
computer/NN
,/,
drug/NN
and/CC
pollution-control/JJ
stocks/NNS
./.
Other/JJ
investment/NN
pros/NNS
are/VBP
more/RBR
pessimistic/JJ
./.
They/PRP
say/VBP
investors/NNS
should/MD
sell/VB
stocks/NNS
--/:
but/CC
not/RB
necessarily/RB
right/RB
away/RB
./.
Many/JJ
of/IN
them/PRP
stress/VBP
that/IN
the/DT
selling/NN
can/MD
be/VB
orderly/JJ
,/,
gradual/JJ
,/,
and/CC
done/VBN
when/WRB
stock/NN
prices/NNS
are/VBP
rallying/VBG
./.
On/IN
Thursday/NNP
,/,
William/NNP
Fleckenstein/NNP
,/,
a/DT
Seattle/NNP
money/NN
manager/NN
,/,
used/VBD
futures/NNS
contracts/NNS
in/IN
his/PRP$
personal/JJ
account/NN
to/TO
place/VB
a/DT
bet/NN
that/IN
the/DT
broad/JJ
market/NN
averages/NNS
would/MD
decline/VB
./.
He/PRP
thinks/VBZ
the/DT
underlying/VBG
inflation/NN
rate/NN
is/VBZ
around/IN
5/CD
%/NN
to/TO
6/CD
%/NN
,/,
far/RB
higher/JJR
than/IN
most/JJS
people/NNS
suppose/VBP
./.
In/IN
the/DT
pension/NN
accounts/NNS
he/PRP
manages/VBZ
,/,
Mr./NNP
Fleckenstein/NNP
has/VBZ
raised/VBN
cash/NN
positions/NNS
and/CC
invested/VBN
in/IN
gold/NN
and/CC
natural/JJ
gas/NN
stocks/NNS
,/,
partly/RB
as/IN
an/DT
inflation/NN
hedge/NN
./.
He/PRP
thinks/VBZ
government/NN
officials/NNS
are/VBP
terrified/VBN
to/TO
let/VB
a/DT
recession/NN
start/VB
when/WRB
government/NN
,/,
corporate/JJ
and/CC
personal/JJ
debt/NN
levels/NNS
are/VBP
so/RB
high/JJ
./.
So/IN
he/PRP
thinks/VBZ
the/DT
government/NN
will/MD
err/VB
on/IN
the/DT
side/NN
of/IN
rekindled/VBN
inflation/NN
./.
As/IN
a/DT
result/NN
,/,
Mr./NNP
Fleckenstein/NNP
says/VBZ
,/,
``/``
I/PRP
think/VBP
the/DT
ball/NN
game/NN
's/VBZ
over/IN
,/,
''/''
and/CC
investors/NNS
are/VBP
about/IN
to/TO
face/VB
a/DT
bear/NN
market/NN
./.
David/NNP
M./NNP
Jones/NNP
,/,
vice/NN
president/NN
at/IN
Aubrey/NNP
G./NNP
Lanston/NNP
&/CC
Co./NNP
,/,
recommends/VBZ
Treasury/NN
securities/NNS
five/CD
years/NNS
'/POS
maturity/NN
He/PRP
says/VBZ
the/DT
Oct./NNP
6/CD
employment/NN
report/NN
,/,
showing/VBG
slower/JJR
economic/JJ
growth/NN
and/CC
a/DT
severe/JJ
weakening/NN
in/IN
the/DT
manufacturing/VBG
sector/NN
,/,
is/VBZ
a/DT
warning/VBG
sign/NN
to/TO
investors/NNS
./.
One/CD
strategy/NN
for/IN
investors/NNS
who/WP
want/VBP
to/TO
stay/VB
in/IN
but/CC
hedge/VB
their/PRP$
bets/NNS
is/VBZ
to/TO
buy/VB
``/``
put/VBN
''/''
options/NNS
,/,
either/CC
on/IN
the/DT
individual/JJ
stocks/NNS
they/PRP
own/VBP
or/CC
on/IN
a/DT
broad/JJ
market/NN
index/NN
./.
A/DT
put/VBN
option/NN
gives/VBZ
its/PRP$
holder/NN
the/DT
right/RB
(/(
but/CC
not/RB
the/DT
obligation/NN
a/DT
stock/NN
stock/NN
index/NN
a/DT
specified/VBN
price/NN
the/DT
strike/NN
price/NN
the/DT
option/NN
expires/VBZ
./.
Whether/IN
this/DT
insurance/NN
is/VBZ
worthwhile/JJ
depends/VBZ
on/IN
the/DT
cost/NN
of/IN
an/DT
option/NN
./.
The/DT
cost/NN
,/,
or/CC
premium/NN
,/,
tends/VBZ
to/TO
get/VB
fat/JJ
in/IN
times/NNS
of/IN
crisis/NN
./.
Thus/RB
,/,
buying/VBG
puts/NNS
after/IN
a/DT
big/JJ
market/NN
slide/NN
can/MD
be/VB
an/DT
expensive/JJ
way/NN
to/TO
hedge/VB
against/IN
risk/NN
./.
The/DT
prices/NNS
of/IN
puts/NNS
generally/RB
did/VBD
n't/RB
soar/VB
Friday/NNP
./.
For/IN
example/NN
,/,
the/DT
premium/NN
as/IN
a/DT
percentage/NN
of/IN
the/DT
stock/NN
price/NN
for/IN
certain/JJ
puts/NNS
on/IN
Eli/NNP
Lilly/NNP
&/CC
Co./NNP
moved/VBD
up/IN
from/IN
3/CD
%/NN
at/IN
Thursday/NNP
's/POS
close/NN
to/TO
only/RB
3.3/CD
%/NN
at/IN
Friday/NNP
's/POS
close/NN
,/,
even/RB
though/IN
the/DT
shares/NNS
dropped/VBD
more/JJR
than/IN
$/$
5.50/CD
./.
But/CC
put-option/NN
prices/NNS
may/MD
zoom/VB
when/WRB
trading/NN
resumes/VBZ
today/NN
./.
It/PRP
's/VBZ
hard/JJ
to/TO
generalize/VB
about/IN
a/DT
reasonable/JJ
price/NN
for/IN
puts/NNS
./.
But/CC
investors/NNS
should/MD
keep/VB
in/IN
mind/NN
,/,
before/IN
paying/VBG
too/RB
much/JJ
,/,
that/IN
the/DT
average/JJ
annual/JJ
return/NN
for/IN
stock/NN
holdings/NNS
,/,
long-term/JJ
,/,
is/VBZ
9/CD
%/NN
to/TO
10/CD
%/NN
a/DT
year/NN
;/:
a/DT
return/NN
of/IN
15/CD
%/NN
is/VBZ
considered/VBN
praiseworthy/JJ
./.
Paying/VBG
,/,
say/VB
,/,
10/CD
%/NN
for/IN
insurance/NN
against/IN
losses/NNS
takes/VBZ
a/DT
deep/JJ
bite/NN
out/IN
of/IN
the/DT
return/NN
./.
James/NNP
A./NNP
White/NNP
and/CC
Tom/NNP
Herman/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
story/NN
:/:
``/``
Gurus/NNS
'/POS
Views/NNS
Vary/VBP
,/,
But/CC
Crash/NN
Not/RB
Seen/VBN
''/''
--/:
WSJ/NNP
Oct./NNP
16/CD
,/,
1989/CD
)/)
Coldwell/NNP
Banker/NNP
Commercial/NNP
Group/NNP
said/VBD
it/PRP
sold/VBD
$/$
47/CD
million/CD
of/IN
common/JJ
stock/NN
to/TO
its/PRP$
employees/NNS
at/IN
$/$
10/CD
a/DT
share/NN
,/,
giving/VBG
them/PRP
a/DT
total/JJ
stake/NN
of/IN
more/RBR
than/IN
40/CD
%/NN
in/IN
the/DT
commercial/JJ
real/JJ
estate/NN
brokerage/NN
firm/NN
./.
The/DT
firm/NN
,/,
which/WDT
was/VBD
acquired/VBN
in/IN
April/NNP
from/IN
Sears/NNP
,/,
Roebuck/NNP
&/CC
Co./NNP
in/IN
a/DT
management-led/JJ
buy-out/NN
,/,
had/VBD
planned/VBN
to/TO
sell/VB
up/IN
to/TO
$/$
56.4/CD
million/CD
of/IN
stock/NN
,/,
or/CC
a/DT
50/CD
%/NN
stake/NN
in/IN
the/DT
company/NN
,/,
to/TO
its/PRP$
5,000/CD
employees/NNS
./.
Though/IN
the/DT
offering/NN
did/VBD
n't/RB
sell/VB
out/IN
,/,
James/NNP
J./NNP
Didion/NNP
,/,
chairman/NN
and/CC
chief/NN
executive/NN
officer/NN
,/,
said/VBD
,/,
``/``
We/PRP
're/VBP
pretty/RB
proud/JJ
of/IN
the/DT
employees/NNS
'/POS
response/NN
./.
''/''
He/PRP
noted/VBD
that/IN
unlike/IN
an/DT
employee/NN
stock/NN
ownership/NN
plan/NN
,/,
where/WRB
a/DT
company/NN
usually/RB
borrows/VBZ
money/NN
from/IN
third/JJ
party/NN
lenders/NNS
to/TO
buy/VB
stock/NN
that/IN
it/PRP
sets/VBZ
aside/RB
to/TO
award/VB
employees/NNS
over/IN
time/NN
,/,
here/RB
employees/NNS
had/VBD
to/TO
fork/VB
out/IN
their/PRP$
own/JJ
cash/NN
for/IN
the/DT
stock/NN
./.
``/``
They/PRP
came/VBD
up/IN
with/IN
their/PRP$
own/JJ
money/NN
instead/RB
of/IN
borrowed/VBN
money/NN
,/,
''/''
Mr./NNP
Didion/NNP
said/VBD
./.
``/``
It/PRP
's/VBZ
totally/RB
different/JJ
./.
''/''
He/PRP
said/VBD
the/DT
offering/NN
was/VBD
designed/VBN
to/TO
create/VB
long-term/JJ
incentives/NNS
for/IN
employees/NNS
./.
``/``
We/PRP
're/VBP
in/IN
a/DT
service/NN
business/NN
,/,
and/CC
in/IN
that/DT
context/NN
,/,
it/PRP
's/VBZ
vital/JJ
to/TO
have/VB
your/PRP$
employees/NNS
involved/VBN
in/IN
the/DT
ownership/NN
so/IN
they/PRP
have/VBP
a/DT
stake/NN
in/IN
the/DT
success/NN
./.
''/''
The/DT
brokerage/NN
firm/NN
wo/MD
n't/RB
pay/VB
a/DT
dividend/NN
on/IN
the/DT
stock/NN
./.
Employees/NNS
have/VBP
the/DT
right/NN
to/TO
trade/VB
stock/NN
among/IN
themselves/PRP
,/,
and/CC
the/DT
company/NN
will/MD
establish/VB
an/DT
internal/JJ
clearing/NN
house/NN
for/IN
these/DT
transactions/NNS
./.
They/PRP
may/MD
also/RB
eventually/RB
sell/VB
the/DT
shares/NNS
to/TO
third/JJ
parties/NNS
,/,
but/CC
the/DT
outside/JJ
investors/NNS
who/WP
own/VBP
the/DT
remaining/VBG
60/CD
%/NN
of/IN
Coldwell/NNP
Banker/NNP
have/VBP
the/DT
right/NN
to/TO
first/JJ
refusal/NN
./.
Those/DT
outside/JJ
investors/NNS
in/IN
Coldwell/NNP
Banker/NNP
include/VBP
Carlyle/NNP
Group/NNP
,/,
a/DT
closely/RB
held/VBN
Washington/NNP
,/,
D.C./NNP
,/,
merchant/NN
banking/NN
firm/NN
whose/WP$
co-chairman/NN
is/VBZ
Frank/NNP
Carlucci/NNP
,/,
former/JJ
secretary/NN
of/IN
defense/NN
;/:
Frederic/NNP
V./NNP
Malek/NNP
,/,
senior/JJ
adviser/NN
to/TO
Carlyle/NNP
Group/NNP
;/:
Mellon/NNP
Family/NNP
Trust/NNP
of/IN
Pittsburgh/NNP
;/:
Westinghouse/NNP
Credit/NNP
Corp./NNP
,/,
the/DT
financial/JJ
services/NNS
unit/NN
of/IN
Westinghouse/NNP
Electric/NNP
Corp./NNP
;/:
Bankers/NNPS
Trust/NNP
Co./NNP
,/,
a/DT
unit/NN
of/IN
Bankers/NNPS
Trust/NNP
New/NNP
York/NNP
Corp./NNP
;/:
and/CC
a/DT
group/NN
of/IN
Japanese/JJ
investors/NNS
represented/VBN
by/IN
the/DT
investment/NN
banking/NN
unit/NN
of/IN
Tokyo-based/JJ
Sumitomo/NNP
Bank/NNP
./.
Bankers/NNPS
Trust/NNP
and/CC
Sumitomo/NNP
financed/VBD
the/DT
$/$
300/CD
million/CD
acquisition/NN
from/IN
Sears/NNP
Roebuck/NNP
./.
Coldwell/NNP
Banker/NNP
also/RB
named/VBD
three/CD
outside/IN
director/NN
nominees/NNS
for/IN
its/PRP$
17/CD
member/NN
board/NN
./.
The/DT
nominees/NNS
are/VBP
Gary/NNP
Wilson/NNP
,/,
chief/NN
financial/JJ
officer/NN
of/IN
Walt/NNP
Disney/NNP
Co./NNP
;/:
James/NNP
Montgomery/NNP
,/,
chief/NN
executive/NN
officer/NN
of/IN
Great/NNP
Western/NNP
Financial/NNP
Corp./NNP
;/:
and/CC
Peter/NNP
Ubberroth/NNP
,/,
former/JJ
commissioner/NN
of/IN
baseball/NN
and/CC
now/RB
a/DT
private/JJ
investor/NN
./.
The/DT
first/JJ
major/JJ
event/NN
this/DT
morning/NN
in/IN
U.S./NNP
stock/NN
and/CC
futures/NNS
trading/NN
may/MD
be/VB
a/DT
pause/NN
at/IN
the/DT
Chicago/NNP
Mercantile/NNP
Exchange/NNP
./.
Under/IN
a/DT
reform/NN
arising/VBG
from/IN
the/DT
1987/CD
crash/NN
,/,
trading/VBG
in/IN
the/DT
Merc/NNP
's/POS
stock-index/NN
futures/NNS
will/MD
break/VB
for/IN
10/CD
minutes/NNS
if/IN
the/DT
contract/NN
opens/VBZ
and/CC
stays/VBZ
five/CD
points/NNS
from/IN
Friday/NNP
's/POS
close/NN
,/,
a/DT
move/NN
equal/JJ
to/TO
40/CD
points/NNS
on/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
./.
The/DT
aim/NN
of/IN
the/DT
interruption/NN
would/MD
be/VB
to/TO
ease/VB
the/DT
opening/NN
of/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
,/,
which/WDT
would/MD
be/VB
hammered/VBN
by/IN
such/PDT
a/DT
volatile/JJ
move/NN
on/IN
the/DT
Merc/NNP
./.
That/DT
early-morning/NN
breather/NN
is/VBZ
just/RB
one/CD
of/IN
a/DT
number/NN
of/IN
safeguards/NNS
adopted/VBN
after/IN
the/DT
1987/CD
crash/NN
./.
The/DT
Big/NNP
Board/NNP
also/RB
added/VBD
computer/NN
capacity/NN
to/TO
handle/VB
huge/JJ
surges/NNS
in/IN
trading/NN
volume/NN
./.
Several/JJ
of/IN
those/DT
post-crash/JJ
changes/NNS
kicked/VBD
in/IN
during/IN
Friday/NNP
's/POS
one-hour/JJ
collapse/NN
and/CC
worked/VBD
as/IN
expected/VBN
,/,
even/RB
though/IN
they/PRP
did/VBD
n't/RB
prevent/VB
a/DT
stunning/JJ
plunge/NN
./.
But/CC
the/DT
major/JJ
``/``
circuit/NN
breakers/NNS
''/''
have/VBP
yet/RB
to/TO
be/VB
evaluated/VBN
./.
A/DT
deeper/JJR
market/NN
plunge/NN
today/NN
could/MD
give/VB
them/PRP
their/PRP$
first/JJ
test/NN
./.
A/DT
further/JJ
slide/NN
also/RB
would/MD
resurrect/VB
debate/NN
over/IN
a/DT
host/NN
of/IN
other/JJ
,/,
more/JJR
sweeping/VBG
changes/NNS
proposed/VBN
--/:
but/CC
not/RB
implemented/VBN
--/:
after/IN
the/DT
last/JJ
crash/NN
./.
Most/RBS
notably/RB
,/,
several/JJ
of/IN
the/DT
regulatory/JJ
steps/NNS
recommended/VBN
by/IN
the/DT
Brady/NNP
Task/NNP
Force/NNP
,/,
which/WDT
analyzed/VBD
the/DT
1987/CD
crash/NN
,/,
would/MD
be/VB
revived/VBN
--/:
especially/RB
because/IN
that/DT
group/NN
's/POS
chairman/NN
is/VBZ
now/RB
the/DT
Treasury/NN
secretary/NN
./.
The/DT
most/RBS
controversial/JJ
of/IN
the/DT
Brady/NNP
recommendations/NNS
involved/VBD
establishing/VBG
a/DT
single/JJ
overarching/VBG
regulator/NN
to/TO
handle/VB
crucial/JJ
cross-market/JJ
questions/NNS
,/,
such/JJ
as/IN
setting/VBG
consistent/JJ
margin/NN
requirements/NNS
for/IN
the/DT
stock/NN
and/CC
futures/NNS
markets/NNS
./.
But/CC
for/IN
the/DT
moment/NN
,/,
attention/NN
focuses/VBZ
on/IN
the/DT
reforms/NNS
that/WDT
were/VBD
put/VBN
into/IN
place/NN
,/,
and/CC
market/NN
regulators/NNS
and/CC
participants/NNS
said/VBD
the/DT
circuit/NN
breakers/NNS
worked/VBD
as/RB
intended/VBN
./.
Big/NNP
Board/NNP
and/CC
Merc/NNP
officials/NNS
expressed/VBD
satisfaction/NN
with/IN
the/DT
results/NNS
of/IN
two/CD
limits/NNS
imposed/VBN
on/IN
of/IN
the/DT
Merc/NNP
's/POS
Standard/NNP
&/CC
Poor/NNP
's/POS
500/CD
contract/NN
,/,
as/RB
well/RB
as/IN
``/``
hot-line/NN
''/''
communications/NNS
among/IN
exchanges/NNS
./.
Those/DT
pauses/NNS
--/:
from/IN
2:07/CD
p.m./NN
to/TO
2:30/CD
p.m./NN
CDT/NNP
and/CC
from/IN
2:45/CD
p.m./NN
until/IN
the/DT
close/NN
of/IN
trading/NN
a/DT
half-hour/NN
later/RB
--/:
forced/VBD
traders/NNS
to/TO
buy/VB
and/CC
sell/VB
contracts/NNS
at/IN
prices/NNS
at/IN
or/CC
higher/JJR
than/IN
their/PRP$
frozen/VBN
levels/NNS
./.
During/IN
the/DT
first/JJ
halt/NN
,/,
after/IN
the/DT
S&P/NNP
index/NN
had/VBD
fallen/VBN
12/CD
points/NNS
,/,
the/DT
Big/NNP
Board/NNP
's/POS
``/``
Sidecar/NN
''/''
computer/NN
program/NN
automatically/RB
was/VBD
triggered/VBN
./.
That/DT
system/NN
is/VBZ
designed/VBN
to/TO
separate/VB
computer-generated/JJ
program/NN
trades/NNS
from/IN
all/DT
other/JJ
trades/NNS
to/TO
help/VB
exchange/NN
officials/NNS
resolve/VB
order/NN
imbalances/NNS
in/IN
individual/JJ
stocks/NNS
./.
One/CD
Merc/NNP
broker/NN
compared/VBD
the/DT
action/NN
in/IN
the/DT
S&P/NNP
pit/NN
during/IN
the/DT
two/CD
freezes/NNS
to/TO
a/DT
fire/NN
at/IN
a/DT
well-drilled/JJ
school/NN
./.
``/``
You/PRP
do/VBP
n't/RB
want/VB
the/DT
fire/NN
but/CC
you/PRP
know/VBP
what/WP
to/TO
do/VB
,/,
''/''
said/VBD
Howard/NNP
Dubnow/NNP
,/,
an/DT
independent/JJ
floor/NN
broker/NN
and/CC
a/DT
Merc/NNP
governor/NN
./.
``/``
There/EX
was/VBD
no/DT
panic/NN
./.
The/DT
system/NN
worked/VBD
the/DT
way/NN
we/PRP
devised/VBD
it/PRP
to/TO
work/VB
./.
''/''
After/IN
reopening/VBG
for/IN
about/IN
15/CD
minutes/NNS
,/,
the/DT
S&P/NNP
index/NN
tumbled/VBD
to/TO
its/PRP$
30-point/JJ
limit/NN
and/CC
the/DT
second/JJ
freeze/NN
went/VBD
into/IN
effect/NN
./.
Traders/NNS
then/RB
spent/VBD
the/DT
last/JJ
half-hour/NN
``/``
watching/VBG
to/TO
see/VB
if/IN
the/DT
Dow/NNP
would/MD
drop/VB
250/CD
points/NNS
,/,
''/''
Mr./NNP
Dubnow/NNP
added/VBD
,/,
referring/VBG
to/TO
the/DT
level/NN
at/IN
which/WDT
the/DT
stock/NN
market/NN
itself/PRP
would/MD
have/VB
closed/VBN
for/IN
an/DT
hour/NN
./.
One/CD
observer/NN
estimated/VBD
that/IN
80/CD
%/NN
to/TO
90/CD
%/NN
of/IN
the/DT
S&P/NNP
traders/NNS
``/``
were/VBD
just/RB
standing/VBG
around/IN
watching/VBG
./.
''/''
But/CC
the/DT
250-point/JJ
circuit/NN
breaker/NN
never/RB
had/VBD
to/TO
kick/VB
in/IN
,/,
and/CC
freezes/VBZ
on/IN
the/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
's/POS
Major/NNP
Market/NNP
Index/NNP
also/RB
were/VBD
n't/RB
triggered/VBN
./.
The/DT
MMI/NNP
and/CC
the/DT
S&P/NNP
500/CD
are/VBP
the/DT
two/CD
major/JJ
indexes/NNS
used/VBN
by/IN
program/NN
traders/NNS
to/TO
run/VB
their/PRP$
computerized/VBN
trading/NN
strategies/NNS
./.
The/DT
programs/NNS
are/VBP
considered/VBN
by/IN
many/JJ
to/TO
be/VB
a/DT
major/JJ
cause/NN
of/IN
the/DT
1987/CD
crash/NN
./.
The/DT
process/NN
of/IN
post-crash/JJ
reforms/NNS
began/VBD
with/IN
calls/NNS
to/TO
remake/VB
the/DT
markets/NNS
and/CC
wound/VBD
up/IN
a/DT
year/NN
later/RB
with/IN
a/DT
series/NN
of/IN
rather/RB
technical/JJ
adjustments/NNS
./.
In/IN
October/NNP
1987/CD
,/,
just/RB
after/IN
the/DT
market/NN
drop/NN
,/,
Washington/NNP
was/VBD
awash/JJ
in/IN
talk/NN
of/IN
sweeping/VBG
changes/NNS
in/IN
the/DT
way/NN
the/DT
financial/JJ
markets/NNS
are/VBP
structured/VBN
and/CC
regulated/VBN
./.
Over/IN
the/DT
next/JJ
year/NN
that/IN
grand/JJ
agenda/NN
was/VBD
whittled/VBN
down/IN
to/TO
a/DT
series/NN
of/IN
steps/NNS
to/TO
soften/VB
big/JJ
stock/NN
drops/NNS
by/IN
interrupting/VBG
trading/NN
to/TO
give/VB
market/NN
players/NNS
time/NN
to/TO
pause/VB
and/CC
reconsider/VB
positions/NNS
./.
In/IN
addition/NN
,/,
limits/NNS
were/VBD
placed/VBN
on/IN
computer-driven/JJ
trading/NN
,/,
and/CC
steps/NNS
were/VBD
taken/VBN
to/TO
better/RB
link/VB
the/DT
stock/NN
and/CC
futures/NNS
markets/NNS
./.
Few/JJ
changes/NNS
were/VBD
made/VBN
in/IN
the/DT
way/NN
the/DT
markets/NNS
are/VBP
regulated/VBN
./.
At/IN
the/DT
outset/NN
the/DT
prime/JJ
target/NN
was/VBD
program/NN
trading/NN
,/,
which/WDT
was/VBD
much/RB
discussed/VBN
but/CC
little/RB
understood/VBN
on/IN
Capitol/NNP
Hill/NNP
./.
There/EX
were/VBD
also/RB
calls/VBZ
to/TO
strip/VB
the/DT
stock/NN
markets/NNS
of/IN
``/``
derivative/JJ
''/''
products/NNS
,/,
such/JJ
as/IN
stock-index/JJ
futures/NNS
and/CC
options/NNS
,/,
which/WDT
Federal/NNP
Judge/NNP
Stanley/NNP
Sporkin/NNP
,/,
for/IN
example/NN
,/,
likened/VBD
to/TO
``/``
barnacles/NNS
attached/VBN
to/TO
the/DT
basic/JJ
market/NN
./.
''/''
And/CC
there/EX
was/VBD
much/JJ
criticism/NN
of/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
's/POS
system/NN
of/IN
having/VBG
stock/NN
trades/NNS
flow/VB
through/IN
specialists/NNS
,/,
or/CC
market/NN
makers/NNS
./.
When/WRB
the/DT
Brady/NNP
Task/NNP
Force/NNP
's/POS
powerful/JJ
analysis/NN
of/IN
the/DT
crash/NN
was/VBD
released/VBN
in/IN
January/NNP
1988/CD
,/,
it/PRP
immediately/RB
reshaped/VBD
the/DT
reformers/NNS
'/POS
agenda/NN
./.
Arguing/VBG
that/IN
the/DT
separate/JJ
financial/JJ
marketplaces/NNS
acted/VBD
as/IN
one/CD
,/,
and/CC
concluding/VBG
that/IN
the/DT
crash/NN
had/VBD
``/``
raised/VBN
the/DT
possibility/NN
of/IN
a/DT
full-scale/JJ
financial/JJ
system/NN
breakdown/NN
,/,
''/''
the/DT
presidential/JJ
task/NN
force/NN
called/VBD
for/IN
establishing/VBG
a/DT
super-regulator/NN
to/TO
oversee/VB
the/DT
markets/NNS
,/,
to/TO
make/VB
margins/NNS
consistent/JJ
across/IN
markets/NNS
,/,
to/TO
unify/VB
clearing/VBG
systems/NNS
and/CC
to/TO
install/VB
circuit/NN
breakers/NNS
./.
Only/RB
the/DT
last/JJ
of/IN
those/DT
recommendations/NNS
ever/RB
was/VBD
implemented/VBN
./.
The/DT
Reagan/NNP
White/NNP
House/NNP
held/VBD
the/DT
Brady/NNP
recommendations/NNS
at/IN
arm/NN
's/POS
length/NN
and/CC
named/VBD
a/DT
second/JJ
panel/NN
--/:
the/DT
Working/NNP
Group/NNP
on/IN
the/DT
Financial/NNP
Markets/NNPS
--/:
to/TO
review/VB
its/PRP$
analysis/NN
and/CC
those/DT
of/IN
other/JJ
crash/NN
studies/NNS
./.
In/IN
May/NNP
1988/CD
,/,
the/DT
Working/NNP
Group/NNP
,/,
made/VBD
up/IN
of/IN
representatives/NNS
from/IN
the/DT
Federal/NNP
Reserve/NNP
,/,
the/DT
Treasury/NNP
,/,
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
,/,
and/CC
the/DT
Commodity/NNP
Futures/NNPS
Trading/NNP
Commission/NNP
,/,
finally/RB
endorsed/VBD
only/JJ
circuit/NN
breakers/NNS
./.
After/IN
several/JJ
more/JJR
months/NNS
of/IN
arguments/NNS
among/IN
various/JJ
stock/NN
exchanges/NNS
and/CC
futures/NNS
markets/NNS
,/,
circuit/NN
breakers/NNS
were/VBD
set/VBN
in/IN
place/NN
,/,
with/IN
the/DT
most/RBS
notable/JJ
suspending/VBG
trading/NN
after/IN
250/CD
and/CC
400/CD
point/NN
drops/NNS
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
./.
Privately/RB
,/,
some/DT
free/JJ
marketeers/NNS
dismissed/VBD
such/JJ
mechanisms/NNS
as/IN
sops/NNS
to/TO
interventionists/NNS
./.
After/IN
all/DT
,/,
this/DT
free-market/NN
argument/NN
went/VBD
,/,
the/DT
Dow/NNP
only/RB
dropped/VBD
more/JJR
than/IN
250/CD
points/NNS
once/RB
this/DT
century/NN
./.
``/``
Circuit/NN
breakers/NNS
''/''
set/VBN
to/TO
soften/VB
big/JJ
drops/NNS
:/:
--/:
If/IN
S&P/NNP
futures/NNS
fall/VBP
5/CD
points/NNS
at/IN
opening/NN
,/,
contract/NN
trading/NN
pauses/VBZ
for/IN
10/CD
minutes/NNS
./.
--/:
If/IN
Dow/NNP
Industrials/NNPS
fall/VBP
25/CD
points/NNS
at/IN
opening/NN
,/,
contract/NN
trading/NN
pauses/VBZ
for/IN
10/CD
minutes/NNS
./.
--/:
If/IN
S&P/NNP
futures/NNS
fall/VBP
12/CD
points/NNS
equivalent/NN
to/TO
about/IN
100/CD
points/NNS
on/IN
DJIA/NNP
half/DT
hour/NN
to/TO
that/DT
price/NN
or/CC
higher/JJR
./.
On/IN
NYSE/NNP
program/NN
trades/NNS
are/VBP
diverted/VBN
into/IN
a/DT
separate/JJ
computer/NN
file/NN
to/TO
determine/VB
buy/VB
and/CC
sell/VB
orders/NNS
./.
--/:
If/IN
S&P/NNP
futures/NNS
fall/VBP
30/CD
points/NNS
,/,
trading/NN
is/VBZ
restricted/VBN
for/IN
an/DT
hour/NN
to/TO
that/DT
price/NN
or/CC
higher/JJR
./.
--/:
If/IN
Dow/NNP
Industrials/NNPS
fall/VBP
250/CD
points/NNS
,/,
trading/NN
on/IN
the/DT
Big/NNP
Board/NNP
halts/VBZ
for/IN
an/DT
hour/NN
./.
S&P/NNP
and/CC
MMI/NNP
contracts/NNS
also/RB
halt/VBP
./.
--/:
If/IN
DJIA/NNP
drops/VBZ
400/CD
points/NNS
,/,
Big/NNP
Board/NNP
halts/VBZ
trading/NN
for/IN
two/CD
hours/NNS
./.
Trading/NN
in/IN
MMI/NNP
and/CC
S&P/NNP
futures/NNS
also/RB
halted/VBD
./.
Brady/NNP
Task/NNP
Force/NNP
recommendations/NNS
Jan./NNP
1988/CD
--/:
Establish/VB
an/DT
overarching/VBG
regulator/NN
for/IN
financial/JJ
markets/NNS
--/:
Unify/VB
trade-clearing/JJ
systems/NNS
--/:
Make/VB
margins/NNS
consistent/JJ
across/IN
stock/NN
and/CC
futures/NNS
markets/NNS
SEC/NNP
proposals/NNS
1988/CD
--/:
Require/VB
prompt/JJ
reports/NNS
of/IN
large/JJ
securities/NNS
trades/NNS
./.
--/:
Give/VB
SEC/NNP
authority/NN
to/TO
monitor/VB
risk-taking/NN
by/IN
affiliates/NNS
of/IN
brokerage/NN
firms/NNS
./.
--/:
Transfer/NN
jurisdiction/NN
over/IN
stock-related/JJ
futures/NNS
to/TO
SEC/NNP
from/IN
CFTC/NNP
./.
new/JJ
SEC/NNP
chairman/NN
SEC/NNP
authority/NN
to/TO
halt/VB
securities/NNS
trading/NN
,/,
(/(
also/RB
opposed/VBN
by/IN
new/JJ
SEC/NNP
chairman/NN
Congressional/JJ
proposal/NN
:/:
--/:
Create/VB
a/DT
task/NN
force/NN
to/TO
review/VB
current/JJ
state/NN
of/IN
the/DT
securities/NNS
markets/NNS
and/CC
securities/NNS
laws/NNS
./.
Breaking/VBG
the/DT
Soviet/JJ
government/NN
's/POS
television/NN
monopoly/NN
,/,
an/DT
independent/JJ
company/NN
has/VBZ
gained/VBN
rights/NNS
to/TO
show/VB
world/NN
programming/NN
,/,
including/VBG
American/JJ
films/NNS
./.
``/``
There/EX
must/MD
not/RB
be/VB
a/DT
monopoly/NN
,/,
there/EX
must/MD
be/VB
freedom/NN
of/IN
choice/NN
for/IN
both/DT
journalists/NNS
and/CC
viewers/NNS
,/,
''/''
Nikolai/NNP
I./NNP
Lutsenko/NNP
,/,
the/DT
president/NN
of/IN
the/DT
Nika/NNP
TV/NN
company/NN
,/,
told/VBD
the/DT
weekly/JJ
newspaper/NN
Nedelya/NNP
./.
The/DT
company/NN
is/VBZ
already/RB
working/VBG
on/IN
its/PRP$
own/JJ
programming/NN
in/IN
several/JJ
provincial/JJ
cities/NNS
and/CC
hopes/VBZ
to/TO
be/VB
on/IN
the/DT
air/NN
regularly/RB
in/IN
about/IN
a/DT
year/NN
,/,
the/DT
newspaper/NN
said/VBD
./.
Mr./NNP
Lutsenko/NNP
told/VBD
Nedelya/NNP
that/IN
he/PRP
recently/RB
had/VBD
been/VBN
to/TO
the/DT
U.S./NNP
to/TO
pick/VB
up/IN
the/DT
rights/NNS
to/TO
show/VB
5,000/CD
U.S./NNP
films/NNS
in/IN
the/DT
Soviet/NNP
Union/NNP
./.
Nedelya/NNP
's/POS
article/NN
was/VBD
accompanied/VBN
by/IN
a/DT
picture/NN
of/IN
Mr./NNP
Lutsenko/NNP
interviewing/VBG
singer/NN
John/NNP
Denver/NNP
in/IN
Colorado/NNP
./.
Even/RB
though/IN
it/PRP
will/MD
be/VB
independent/JJ
of/IN
official/JJ
television/NN
,/,
Nika/NNP
will/MD
have/VB
an/DT
oversight/NN
board/NN
that/WDT
will/MD
include/VB
members/NNS
of/IN
the/DT
Communist/NNP
youth/NN
league/NN
./.
South/NNP
Africa/NNP
's/POS
National/NNP
Union/NNP
of/IN
Mineworkers/NNPS
said/VBD
that/IN
about/IN
10,000/CD
diamond/NN
miners/NNS
struck/VBN
for/IN
higher/JJR
wages/NNS
at/IN
De/NNP
Beers/NNP
Consolidated/NNP
Mines/NNPS
Ltd./NNP
De/NNP
Beers/NNP
said/VBD
that/IN
workers/NNS
at/IN
five/CD
of/IN
the/DT
group/NN
's/POS
mines/NNS
were/VBD
on/IN
strike/NN
,/,
which/WDT
it/PRP
said/VBD
was/VBD
peaceful/JJ
,/,
with/IN
orderly/JJ
picketing/NN
occurring/VBG
at/IN
one/CD
of/IN
the/DT
mines/NNS
./.
The/DT
deadlock/NN
in/IN
negotiations/NNS
occurred/VBD
with/IN
De/NNP
Beers/NNP
offering/VBG
a/DT
17/CD
%/NN
increase/NN
in/IN
the/DT
minimum-wage/NN
category/NN
while/IN
the/DT
union/NN
demanded/VBD
a/DT
37.6/CD
%/NN
increase/NN
in/IN
the/DT
minimum/JJ
wage/NN
./.
Japan/NNP
's/POS
opposition/NN
Socialist/NNP
Party/NNP
denied/VBD
that/IN
its/PRP$
legislators/NNS
had/VBD
been/VBN
bribed/VBN
by/IN
pinball-parlor/NN
owners/NNS
./.
The/DT
allegation/NN
had/VBD
been/VBN
raised/VBN
in/IN
Parliament/NNP
by/IN
the/DT
governing/VBG
Liberal/NNP
Democratic/NNP
Party/NNP
following/VBG
magazine/NN
reports/NNS
suggesting/VBG
that/DT
money/NN
from/IN
Japanese-style/JJ
pinball/NN
,/,
called/VBN
pachinko/NN
,/,
had/VBD
infiltrated/VBN
politics/NNS
./.
Tsuruo/NNP
Yamaguchi/NNP
,/,
secretary/NN
general/NN
of/IN
the/DT
Socialist/NNP
Party/NNP
,/,
acknowledged/VBD
that/IN
nine/CD
party/NN
lawmakers/NNS
had/VBD
received/VBN
donations/NNS
from/IN
the/DT
pachinko/NN
association/NN
totaling/VBG
8/CD
million/CD
yen/NN
$/$
55,000/CD
the/DT
donations/NNS
were/VBD
legal/JJ
and/CC
none/NN
of/IN
its/PRP$
members/NNS
acted/VBD
to/TO
favor/VB
the/DT
industry/NN
./.
The/DT
World/NNP
Wide/NNP
Fund/NNP
for/IN
Nature/NNP
said/VBD
that/IN
Spain/NNP
,/,
Argentina/NNP
,/,
Thailand/NNP
and/CC
Indonesia/NNP
were/VBD
doing/VBG
too/RB
little/JJ
to/TO
prevent/VB
illegal/JJ
trade/NN
in/IN
endangered/VBN
wildlife/NN
across/IN
their/PRP$
borders/NNS
./.
A/DT
report/NN
by/IN
the/DT
conservation/NN
group/NN
presented/VBN
at/IN
the/DT
U.N.-sponsored/JJ
Convention/NNP
on/IN
International/NNP
Trade/NNP
in/IN
Endangered/NNP
Species/NNP
in/IN
Lausanne/NNP
accused/VBD
the/DT
four/CD
of/IN
trading/VBG
protected/VBN
species/NNS
ranging/VBG
from/IN
parakeets/NNS
to/TO
orchids/NNS
./.
Fund/NNP
official/NN
Simon/NNP
Lyster/NNP
said/VBD
world/NN
trade/NN
in/IN
wildlife/NN
was/VBD
estimated/VBN
to/TO
total/VB
$/$
5/CD
billion/CD
of/IN
business/NN
annually/RB
./.
A/DT
NATO/NNP
project/NN
to/TO
build/VB
a/DT
frigate/NN
for/IN
the/DT
1990s/CD
was/VBD
torpedoed/VBN
by/IN
the/DT
pull-out/NN
of/IN
three/CD
of/IN
its/PRP$
eight/CD
participating/VBG
nations/NNS
./.
Britain/NNP
,/,
France/NNP
and/CC
Italy/NNP
announced/VBD
technical/JJ
reasons/NNS
for/IN
withdrawing/VBG
,/,
but/CC
some/DT
officials/NNS
pointed/VBD
to/TO
growing/VBG
reluctance/NN
among/IN
the/DT
allies/NNS
to/TO
commit/VB
themselves/PRP
to/TO
big/JJ
defense/NN
spending/NN
while/IN
East-West/NNP
disarmament/NN
talks/NNS
show/VBP
signs/NNS
of/IN
success/NN
./.
Small/JJ
wonder/NN
that/IN
Britain/NNP
's/POS
Labor/NNP
Party/NNP
wants/VBZ
credit/NN
controls/NNS
./.
A/DT
few/JJ
hours/NNS
after/IN
the/DT
party/NN
launched/VBD
its/PRP$
own/JJ
affinity/NN
credit/NN
card/NN
earlier/RBR
this/DT
month/NN
,/,
the/DT
Tories/NNS
raised/VBD
the/DT
nation/NN
's/POS
base/NN
interest/NN
rate/NN
./.
Labor/NNP
's/POS
Visa/NNP
card/NN
is/VBZ
believed/VBN
to/TO
be/VB
the/DT
first/RB
linked/VBN
to/TO
a/DT
British/JJ
political/JJ
party/NN
./.
Labor/NNP
gets/VBZ
25/CD
pence/NN
39/CD
cents/NNS
every/DT
100/CD
$/$
155/CD
a/DT
user/NN
charges/VBZ
to/TO
the/DT
card/NN
./.
As/IN
with/IN
other/JJ
plastic/NN
in/IN
Britain/NNP
's/POS
high-interest-rate/JJ
environment/NN
,/,
the/DT
Labor/NNP
card/NN
,/,
administered/VBN
by/IN
Co-operative/NNP
Bank/NNP
,/,
carries/VBZ
a/DT
stiff/JJ
this/DT
case/NN
,/,
29.8/CD
%/NN
annual/JJ
rate/NN
on/IN
the/DT
unpaid/JJ
balance/NN
./.
China/NNP
's/POS
year-long/JJ
austerity/NN
program/NN
has/VBZ
achieved/VBN
some/DT
successes/NNS
in/IN
harnessing/VBG
runaway/JJ
economic/JJ
growth/NN
and/CC
stabilizing/VBG
prices/NNS
but/CC
has/VBZ
failed/VBN
to/TO
eliminate/VB
serious/JJ
defects/NNS
in/IN
state/NN
planning/NN
and/CC
an/DT
alarming/VBG
drain/NN
on/IN
state/NN
budgets/NNS
./.
The/DT
official/JJ
China/NNP
Daily/NNP
said/VBD
retail/JJ
prices/NNS
of/IN
non-staple/JJ
foods/NNS
have/VBP
n't/RB
risen/VBN
since/IN
last/JJ
December/NNP
but/CC
acknowledged/VBD
that/DT
huge/JJ
government/NN
subsidies/NNS
were/VBD
a/DT
main/JJ
factor/NN
in/IN
keeping/VBG
prices/NNS
down/IN
./.
The/DT
State/NNP
Statistical/NNP
Bureau/NNP
found/VBD
that/IN
more/RBR
than/IN
1/CD
billion/CD
yuan/NN
$/$
270/CD
million/CD
the/DT
first/JJ
half/DT
of/IN
the/DT
year/NN
for/IN
pork/NN
subsidies/NNS
./.
The/DT
newspaper/NN
quoted/VBD
experts/NNS
as/IN
saying/VBG
the/DT
subsidies/NNS
would/MD
cause/VB
the/DT
difference/NN
between/IN
prices/NNS
and/CC
real/JJ
values/NNS
of/IN
commodities/NNS
to/TO
``/``
become/VB
very/RB
unreasonable/JJ
''/''
and/CC
reduce/VB
needed/VBN
funds/NNS
for/IN
investment/NN
in/IN
the/DT
``/``
already/RB
difficult/JJ
state/NN
budget/NN
./.
''/''
The/DT
aim/NN
of/IN
the/DT
austerity/NN
measures/NNS
was/VBD
to/TO
slice/VB
economic/JJ
growth/NN
,/,
which/WDT
soared/VBD
to/TO
20.7/CD
%/NN
last/JJ
year/NN
,/,
to/TO
8/CD
%/NN
in/IN
1990/CD
./.
Economists/NNS
now/RB
predict/VBP
the/DT
growth/NN
rate/NN
will/MD
be/VB
about/IN
11.5/CD
%/NN
for/IN
the/DT
year/NN
./.
In/IN
a/DT
sign/NN
of/IN
growing/VBG
official/JJ
tolerance/NN
for/IN
religion/NN
,/,
Russian/NNP
Orthodox/NNP
priests/NNS
were/VBD
allowed/VBN
to/TO
celebrate/VB
the/DT
400th/JJ
anniversary/NN
of/IN
the/DT
Moscow/NNP
patriarchate/NN
in/IN
the/DT
Kremlin/NNP
's/POS
15th-century/JJ
Uspensky/NNP
Cathedral/NNP
,/,
where/WRB
czars/NNS
were/VBD
crowned/VBN
.../:
./.
A/DT
34-foot-tall/JJ
,/,
$/$
7.7/CD
million/CD
statue/NN
of/IN
Buddha/NNP
was/VBD
completed/VBN
on/IN
a/DT
hill/NN
outside/IN
Hong/NNP
Kong/NNP
,/,
facing/VBG
China/NNP
./.
The/DT
statue/NN
is/VBZ
the/DT
brainchild/NN
of/IN
Sik/NNP
Chi/NNP
Wan/NNP
,/,
director/NN
of/IN
the/DT
Po/NNP
Lin/NNP
Monastery/NNP
,/,
who/WP
said/VBD
:/:
``/``
Hong/NNP
Kong/NNP
is/VBZ
such/JJ
a/DT
prosperous/JJ
place/NN
,/,
we/PRP
also/RB
need/VBP
some/DT

kind/NN
of/IN
religious/JJ
symbol/NN
./.
''/''
It/PRP
all/DT
seemed/VBD
innocent/JJ
enough/RB
:/:
Last/JJ
April/NNP
,/,
one/CD
Steven/NNP
B./NNP
Iken/NNP
visited/VBD
Justin/NNP
Products/NNPS
Inc./NNP
here/RB
,/,
identified/VBD
himself/PRP
as/IN
a/DT
potential/JJ
customer/NN
and/CC
got/VBD
the/DT
word/NN
on/IN
the/DT
little/JJ
company/NN
's/POS
new/JJ
cassette/NN
players/NNS
for/IN
children/NNS
./.
``/``
It/PRP
is/VBZ
almost/RB
identical/JJ
to/TO
the/DT
Sony/NNP
product/NN
,/,
''/''
Mr./NNP
Iken/NNP
remarked/VBD
,/,
after/IN
seeing/VBG
prototypes/NNS
and/CC
pictures/NNS
./.
Replied/VBD
a/DT
Justin/NNP
salesman/NN
:/:
``/``
Exactly/RB
./.
''/''
The/DT
Justin/NNP
merchandise/NN
carried/VBD
wholesale/JJ
prices/NNS
some/DT
40/CD
%/NN
below/IN
those/DT
of/IN
Sony/NNP
Corp./NNP
of/IN
Japan/NNP
's/POS
``/``
My/NNP
First/NNP
Sony/NNP
''/''
line/NN
./.
The/DT
visitor/NN
waxed/VBD
enthusiastic/JJ
and/CC
promised/VBD
to/TO
return/VB
./.
But/CC
instead/RB
of/IN
a/DT
new/JJ
customer/NN
--/:
part/NN
of/IN
a/DT
hoped-for/JJ
bonanza/NN
from/IN
underselling/VBG
Sony/NNP
--/:
Justin/NNP
got/VBD
a/DT
costly/JJ
legal/JJ
morass/NN
./.
Mr./NNP
Iken/NNP
,/,
it/PRP
turned/VBD
out/IN
,/,
was/VBD
a/DT
private/JJ
detective/NN
using/VBG
a/DT
hidden/VBN
tape/NN
recorder/NN
to/TO
gather/VB
information/NN
for/IN
Sony/NNP
./.
His/PRP$
recording/NN
later/RB
turned/VBD
up/IN
as/IN
a/DT
court/NN
exhibit/NN
./.
Seeking/VBG
to/TO
keep/VB
Justin/NNP
's/POS
``/``
My/NNP
Own/NNP
''/''
product/NN
line/NN
off/IN
the/DT
U.S./NNP
market/NN
,/,
Sony/NNP
last/JJ
May/NNP
filed/VBD
a/DT
suit/NN
in/IN
Manhattan/NNP
federal/JJ
court/NN
accusing/VBG
the/DT
upstart/NN
of/IN
trademark/NN
infringement/NN
,/,
unfair/JJ
competition/NN
and/CC
other/JJ
violations/NNS
of/IN
business/NN
law/NN
./.
Since/IN
then/RB
,/,
life/NN
has/VBZ
changed/VBN
a/DT
lot/NN
for/IN
61-year-old/JJ
Leonard/NNP
Kaye/NNP
,/,
Justin/NNP
's/POS
owner/NN
./.
``/``
I/PRP
have/VBP
n't/RB
been/VBN
able/JJ
to/TO
get/VB
a/DT
decent/JJ
night/NN
's/POS
sleep/NN
since/IN
this/DT
has/VBZ
been/VBN
going/VBG
on/IN
,/,
''/''
he/PRP
says/VBZ
./.
``/``
It/PRP
's/VBZ
the/DT
most/RBS
distracting/VBG
thing/NN
in/IN
my/PRP$
life/NN
--/:
I/PRP
ca/MD
n't/RB
even/RB
attend/VB
to/TO
my/PRP$
business/NN
./.
''/''
His/PRP$
company/NN
annual/JJ
sales/NNS
:/:
about/IN
$/$
25/CD
million/CD
a/DT
costly/JJ
blow/NN
--/:
losing/VBG
an/DT
estimated/VBN
10/CD
%/NN
of/IN
total/JJ
sales/NNS
--/:
if/IN
Sony/NNP
annual/JJ
sales/NNS
:/:
about/IN
$/$
16/CD
billion/CD
Justin/NNP
's/POS
plight/NN
shows/VBZ
what/WP
can/MD
happen/VB
when/WRB
a/DT
tiny/JJ
company/NN
suddenly/RB
faces/VBZ
the/DT
full/JJ
legal/JJ
might/NN
of/IN
a/DT
wrathful/JJ
multinational/JJ
./.
With/IN
considerable/JJ
irony/NN
,/,
the/DT
case/NN
also/RB
shows/VBZ
how/WRB
completely/RB
Japan/NNP
has/VBZ
turned/VBN
the/DT
tables/NNS
on/IN
U.S./NNP
business/NN
./.
Americans/NNPS
used/VBD
to/TO
complain/VB
bitterly/RB
about/IN
being/VBG
undersold/NN
by/IN
look-alike/JJ
products/NNS
from/IN
Japan/NNP
./.
Now/RB
Sony/NNP
,/,
whose/WP$
innovative/JJ
,/,
premium-priced/JJ
products/NNS
are/VBP
among/IN
the/DT
most/RBS
admired/VBN
in/IN
consumer/NN
electronics/NNS
,/,
is/VBZ
bitterly/RB
complaining/VBG
about/IN
a/DT
little/JJ
U.S./NNP
firm/NN
with/IN
a/DT
cheap/JJ
look-alike/NN
produced/VBN
in/IN
China/NNP
./.
``/``
The/DT
gist/NN
of/IN
this/DT
is/VBZ
that/DT
Justin/NNP
knocked/VBD
off/IN
the/DT
Sony/NNP
line/NN
and/CC
Sony/NNP
wants/VBZ
to/TO
stop/VB
it/PRP
,/,
''/''
says/VBZ
Lewis/NNP
H./NNP
Eslinger/NNP
,/,
Sony/NNP
's/POS
attorney/NN
,/,
who/WP
previously/RB
guarded/VBD
Rubik/NNP
's/POS
Cube/NNP
./.
Sony/NNP
itself/PRP
declines/VBZ
to/TO
comment/VB
./.
Sony/NNP
wins/VBZ
,/,
Mr./NNP
Eslinger/NNP
says/VBZ
,/,
its/PRP$
little/JJ
rival/NN
will/MD
have/VB
to/TO
try/VB
to/TO
sell/VB
the/DT
products/NNS
overseas/RB
./.
At/IN
worst/JJS
,/,
he/PRP
adds/VBZ
,/,
``/``
They/PRP
'd/MD
have/VB
to/TO
grind/VB
them/PRP
all/DT
up/IN
and/CC
throw/VB
them/PRP
away/RB
./.
''/''
Mr./NNP
Kaye/NNP
denies/VBZ
the/DT
suit/NN
's/POS
charges/NNS
and/CC
says/VBZ
his/PRP$
only/JJ
mistake/NN
was/VBD
taking/VBG
on/IN
Sony/NNP
in/IN
the/DT
marketplace/NN
./.
``/``
I/PRP
made/VBD
a/DT
similar/JJ
line/NN
and/CC
I/PRP
produced/VBD
it/PRP
cheaper/JJR
,/,
''/''
he/PRP
says/VBZ
./.
Today/NN
,/,
U.S./NNP
Judge/NNP
John/NNP
E./NNP
Sprizzo/NNP
is/VBZ
expected/VBN
to/TO
rule/VB
on/IN
Sony/NNP
's/POS
renewed/VBN
request/NN
for/IN
a/DT
pre-trial/JJ
order/NN
blocking/VBG
sale/NN
of/IN
the/DT
disputed/VBN
products/NNS
,/,
on/IN
which/WDT
deliveries/NNS
began/VBD
in/IN
July/NNP
./.
The/DT
judge/NN
turned/VBD
down/IN
an/DT
earlier/JJR
Sony/NNP
request/NN
for/IN
such/PDT
an/DT
order/NN
--/:
a/DT
decision/NN
upheld/VBN
on/IN
appeal/NN
--/:
but/CC
Sony/NNP
returned/VBD
with/IN
additional/JJ
evidence/NN
and/CC
arguments/NNS
./.
Though/IN
hoping/VBG
to/TO
settle/VB
the/DT
case/NN
,/,
Justin/NNP
vows/VBZ
to/TO
fight/VB
on/IN
,/,
if/IN
necessary/JJ
./.
But/CC
the/DT
battle/NN
is/VBZ
more/JJR
than/IN
Justin/NNP
bargained/VBD
for/IN
./.
``/``
I/PRP
had/VBD
no/DT
idea/NN
I/PRP
was/VBD
getting/VBG
in/IN
so/RB
deep/JJ
,/,
''/''
says/VBZ
Mr./NNP
Kaye/NNP
,/,
who/WP
founded/VBD
Justin/NNP
in/IN
1982/CD
./.
Mr./NNP
Kaye/NNP
had/VBD
sold/VBN
Capetronic/NNP
Inc./NNP
,/,
a/DT
Taiwan/NNP
electronics/NNS
maker/NN
,/,
and/CC
retired/VBD
,/,
only/RB
to/TO
find/VB
he/PRP
was/VBD
bored/VBN
./.
With/IN
Justin/NNP
,/,
he/PRP
began/VBD
selling/VBG
toys/NNS
and/CC
electronics/NNS
made/VBN
mostly/RB
in/IN
Hong/NNP
Kong/NNP
,/,
beginning/NN
with/IN
Mickey/NNP
Mouse/NNP
radios/NNS
./.
The/DT
company/NN
has/VBZ
grown/VBN
--/:
to/TO
about/IN
40/CD
employees/NNS
,/,
from/IN
four/CD
initially/RB
,/,
Mr./NNP
Kaye/NNP
says/VBZ
./.
Justin/NNP
has/VBZ
been/VBN
profitable/JJ
since/IN
1986/CD
,/,
adds/VBZ
the/DT
official/NN
,/,
who/WP
shares/VBZ
his/PRP$
office/NN
with/IN
numerous/JJ
teddy/NN
bears/VBZ
,/,
all/DT
samples/NNS
from/IN
his/PRP$
line/NN
of/IN
plush/JJ
toys/NNS
./.
Like/IN
many/JJ
others/NNS
,/,
Mr./NNP
Kaye/NNP
took/VBD
notice/NN
in/IN
1987/CD
when/WRB
Sony/NNP
,/,
in/IN
a/DT
classic/JJ
example/NN
of/IN
market/NN
segmentation/NN
,/,
changed/VBD
the/DT
plastic/JJ
skin/NN
and/CC
buttons/NNS
on/IN
the/DT
famous/JJ
Walkman/NNP
line/NN
of/IN
portable/JJ
audio/JJ
equipment/NN
and/CC
created/VBD
the/DT
My/NNP
First/NNP
Sony/NNP
line/NN
for/IN
children/NNS
./.
The/DT
brightly/RB
colored/VBN
new/JJ
products/NNS
looked/VBD
more/JJR
like/IN
toys/NNS
than/IN
the/DT
adult/NN
models/NNS
./.
court/NN
papers/NNS
,/,
Sony/NNP
says/VBZ
it/PRP
has/VBZ
spent/VBN
more/RBR
than/IN
$/$
3/CD
million/CD
to/TO
promote/VB
the/DT
line/NN
,/,
with/IN
resulting/VBG
sales/NNS
of/IN
over/IN
a/DT
million/CD
units/NNS
./.
Sony/NNP
found/VBD
a/DT
new/JJ
market/NN
niche/NN
,/,
but/CC
Mr./NNP
Kaye/NNP
figured/VBD
that/IN
its/PRP$
prices/NNS
left/VBD
plenty/NN
of/IN
room/NN
for/IN
a/DT
lower-priced/JJ
competitor/NN
./.
His/PRP$
products/NNS
are/VBP
n't/RB
exact/JJ
copies/NNS
of/IN
Sony/NNP
's/POS
but/CC
strongly/RB
resemble/VBP
them/PRP
in/IN
size/NN
,/,
shape/NN
and/CC
,/,
especially/RB
,/,
color/NN
./.
Sony/NNP
uses/VBZ
mostly/RB
red/JJ
and/CC
blue/JJ
,/,
with/IN
traces/NNS
of/IN
yellow/JJ
--/:
and/CC
so/RB
does/VBZ
Justin/NNP
,/,
on/IN
the/DT
theory/NN
that/IN
kids/NNS
prefer/VBP
these/DT
colors/NNS
./.
``/``
To/NN
be/VB
successful/JJ
,/,
a/DT
product/NN
can/MD
be/VB
any/DT
color/NN
whatsoever/RB
,/,
as/RB
long/RB
as/IN
it/PRP
is/VBZ
fire-engine/JJ
red/JJ
,/,
''/''
says/VBZ
Charles/NNP
E./NNP
Baxley/NNP
,/,
Justin/NNP
's/POS
attorney/NN
./.
By/IN
last/JJ
winter/NN
,/,
Justin/NNP
was/VBD
showing/VBG
prototypes/NNS
at/IN
toy/JJ
fairs/NNS
in/IN
Hong/NNP
Kong/NNP
and/CC
New/NNP
York/NNP
--/:
and/CC
Sony/NNP
noticed/VBD
./.
Indeed/RB
,/,
concerned/VBD
that/IN
Sony/NNP
sales/NNS
personnel/NNS
were/VBD
threatening/VBG
legal/JJ
action/NN
or/CC
other/JJ
retaliation/NN
--/:
such/JJ
as/IN
withholding/VBG
desirable/JJ
Sony/NNP
products/NNS
--/:
against/IN
Justin/NNP
's/POS
customers/NNS
,/,
Mr./NNP
Baxley/NNP
fired/VBD
off/IN
a/DT
letter/NN
to/TO
Sony/NNP
in/IN
April/NNP
./.
He/PRP
himself/PRP
threatened/VBD
to/TO
take/VB
the/DT
matter/NN
to/TO
the/DT
Federal/NNP
Trade/NNP
Commission/NNP
or/CC
U.S./NNP
Justice/NNP
Department/NNP
./.
But/CC
Justin/NNP
has/VBZ
n't/RB
pursued/VBN
those/DT
charges/NNS
which/WDT
were/VBD
without/IN
merit/NN
,/,
according/VBG
to/TO
Mr./NNP
Eslinger/NNP
,/,
the/DT
Sony/NNP
attorney/NN
Recalls/VBZ
Mr./NNP
Baxley/NNP
:/:
``/``
Our/PRP$
purpose/NN
was/VBD
to/TO
influence/VB
them/PRP
to/TO
leave/VB
us/PRP
alone/RB
./.
We/PRP
never/RB
intended/VBD
taking/VBG
on/IN
Sony/NNP
--/:
we/PRP
do/VBP
n't/RB
have/VB
the/DT
resources/NNS
./.
''/''
Sony/NNP
answered/VBD
the/DT
empty/JJ
threat/NN
with/IN
its/PRP$
real/JJ
suit/NN
./.
Off/IN
and/CC
on/IN
since/IN
then/RB
,/,
the/DT
companies/NNS
have/VBP
skirmished/VBN
in/IN
court/NN
./.
And/CC
Justin/NNP
,/,
in/IN
a/DT
news/NN
release/NN
,/,
says/VBZ
,/,
``/``
Once/RB
competitive/JJ
,/,
Sony/NNP
now/RB
resorts/VBZ
to/TO
strong-arm/JJ
tactics/NNS
in/IN
American/JJ
courtrooms/NNS
to/TO
carve/VB
out/IN
and/CC
protect/VB
niche/NN
markets/NNS
./.
''/''
Sony/NNP
's/POS
lawyer/NN
insists/VBZ
that/IN
the/DT
company/NN
's/POS
tactics/NNS
--/:
including/VBG
the/DT
use/NN
of/IN
a/DT
private/JJ
detective/NN
posing/VBG
as/IN
a/DT
buyer/NN
--/:
are/VBP
routine/JJ
in/IN
such/JJ
matters/NNS
./.
He/PRP
also/RB
insists/VBZ
that/IN
Sony/NNP
,/,
no/RB
less/JJR
than/IN
others/NNS
,/,
has/VBZ
a/DT
legal/JJ
right/NN
to/TO
protect/VB
its/PRP$
``/``
trade/NN
dress/NN
,/,
''/''
in/IN
this/DT
case/NN
,/,
mostly/RB
the/DT
colors/NNS
that/IN
it/PRP
claims/VBZ
make/VB
My/NNP
First/NNP
Sony/NNP
products/NNS
distinctive/JJ
./.
Justin/NNP
claims/VBZ
it/PRP
began/VBD
using/VBG
the/DT
same/JJ
colors/NNS
on/IN
electronic/JJ
goods/NNS
for/IN
children/NNS
long/JJ
before/IN
Sony/NNP
entered/VBD
the/DT
children/NNS
's/POS
market/NN
./.
Whatever/WDT
its/PRP$
merits/NNS
,/,
Sony/NNP
's/POS
aggressive/JJ
defense/NN
is/VBZ
debilitating/JJ
for/IN
Justin/NNP
./.
It/PRP
's/VBZ
also/RB
costly/JJ
./.
Mr./NNP
Kaye/NNP
says/VBZ
he/PRP
has/VBZ
paid/VBN
more/RBR
than/IN
$/$
70,000/CD
in/IN
legal/JJ
fees/NNS
so/RB
far/RB
./.
Of/IN
Sony/NNP
,/,
Mr./NNP
Kaye/NNP
says/VBZ
:/:
``/``
They/PRP
know/VBP
there/EX
's/VBZ
no/DT
way/NN
for/IN
them/PRP
to/TO
lose/VB
./.
They/PRP
just/RB
keep/VBP
digging/VBG
me/PRP
in/IN
deeper/JJR
until/IN
I/PRP
reach/VBP
the/DT
point/NN
where/WRB
I/PRP
give/VBP
up/IN
and/CC
go/VBP
away/RB
./.
''/''
For/IN
now/RB
,/,
though/RB
,/,
he/PRP
vows/VBZ
to/TO
hang/VB
in/IN
./.
@/IN
Charles/NNP
H./NNP
Tenney/NNP
II/NNP
,/,
chairman/NN
of/IN
Unitil/NNP
Corp./NNP
,/,
purchased/VBD
34,602/CD
shares/NNS
,/,
or/CC
4.9/CD
%/NN
,/,
of/IN
Unitil/NNP
's/POS
common/NN
,/,
according/VBG
to/TO
a/DT
filing/NN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
./.
The/DT
stock/NN
was/VBD
bought/VBN
on/IN
Thursday/NNP
in/IN
a/DT
privately/RB
negotiated/VBN
transaction/NN
,/,
the/DT
filing/NN
said/VBD
./.
As/IN
previously/RB
reported/VBN
,/,
Unitil/NNP
,/,
Exeter/NNP
,/,
N.H./NNP
,/,
and/CC
Fitchburg/NNP
Gas/NNP
&/CC
Electric/NNP
Co./NNP
,/,
Fitchburg/NNP
,/,
Mass./NNP
,/,
are/VBP
targets/NNS
of/IN
unsolicited/JJ
tender/NN
offers/VBZ
from/IN
Boston-based/JJ
Eastern/NNP
Utilities/NNPS
Associates/NNPS
./.
Eastern/NNP
Utilities/NNPS
has/VBZ
offered/VBN
$/$
40/CD
a/DT
share/NN
for/IN
Unitil/NNP
and/CC
$/$
36/CD
a/DT
share/NN
for/IN
Fitchburg/NNP
Gas/NNP
and/CC
has/VBZ
extended/VBN
both/DT
offers/NNS
to/TO
Dec./NNP
4/CD
./.
Both/DT
companies/NNS
rejected/VBD
the/DT
offers/NNS
./.
Dresdner/NNP
Bank/NNP
AG/NNP
of/IN
West/NNP
Germany/NNP
has/VBZ
announced/VBN
a/DT
friendly/JJ
tender/NN
offer/NN
for/IN
control/NN
of/IN
Banque/NNP
Internationale/NNP
de/IN
Placements/NNP
,/,
a/DT
French/JJ
bank/NN
whose/WP$
main/JJ
shareholder/NN
is/VBZ
France/NNP
's/POS
Societe/NNP
Generale/NNP
,/,
the/DT
Societe/NNP
de/FW
Bourses/NNP
Francaises/NNP
said/VBD
./.
The/DT
tender/NN
offer/NN
by/IN
West/NNP
Germany/NNP
's/POS
second-biggest/JJ
commercial/JJ
bank/NN
is/VBZ
in/IN
two/CD
stages/NNS
./.
Dresdner/NNP
is/VBZ
offering/VBG
to/TO
acquire/VB
32.99/CD
%/NN
of/IN
BIP/NNP
's/POS
capital/NN
for/IN
1,015/CD
francs/NNS
$/$
156.82/CD
a/DT
share/NN
./.
The/DT
terms/NNS
of/IN
the/DT
offer/NN
put/VBD
a/DT
value/NN
of/IN
528/CD
million/CD
francs/NNS
$/$
81.6/CD
million/CD
the/DT
32.99/CD
%/NN
shareholding/NN
./.
The/DT
Societe/NNP
Generale/NNP
banking/NN
group/NN
controls/VBZ
18.2/CD
%/NN
of/IN
the/DT
shareholding/NN
,/,
while/IN
Societe/NNP
Generale/NNP
de/FW
Belgique/NNP
S.A./NNP
owns/VBZ
9.69/CD
%/NN
and/CC
Financiere/NNP
Tradition/NNP
,/,
a/DT
holding/VBG
company/NN
,/,
owns/VBZ
5.1/CD
%/NN
./.
Mexican/JJ
investor/NN
Joel/NNP
Rocha/NNP
Garza/NNP
said/VBD
he/PRP
sold/VBD
a/DT
block/NN
of/IN
600,000/CD
shares/NNS
of/IN
Smith/NNP
Laboratories/NNPS
Inc./NNP
common/JJ
stock/NN
to/TO
companies/NNS
affiliated/VBN
with/IN
him/PRP
./.
In/IN
a/DT
filing/NN
with/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
,/,
Mr./NNP
Rocha/NNP
Garza/NNP
said/VBD
Biscayne/NNP
Syndicate/NNP
Inc./NNP
,/,
Lahus/NNP
II/NNP
Inc./NNP
,/,
and/CC
Lahus/NNP
III/NNP
Inc./NNP
bought/VBD
the/DT
600,000/CD
shares/NNS
on/IN
Oct./NNP
11/CD
for/IN
$/$
1.4/CD
million/CD
,/,
or/CC
$/$
2.375/CD
a/DT
share/NN
./.
Mr./NNP
Rocha/NNP
Garza/NNP
said/VBD
that/IN
he/PRP
,/,
Clarendon/NNP
Group/NNP
Ltd./NNP
,/,
Biscayne/NNP
,/,
Lahus/NNP
II/NNP
,/,
and/CC
Lahus/NNP
III/NNP
are/VBP
all/RB
affiliated/VBN
and/CC
hold/VBP
a/DT
combined/VBN
stake/NN
of/IN
1,234,100/CD
shares/NNS
,/,
or/CC
9.33/CD
%/NN
./.
Mr./NNP
Rocha/NNP
Garza/NNP
has/VBZ
said/VBN
he/PRP
wants/VBZ
to/TO
purchase/VB
more/JJR
shares/NNS
./.
In/IN
San/NNP
Diego/NNP
,/,
Smith/NNP
Laboratories/NNPS
President/NNP
Timothy/NNP
Wollaeger/NNP
said/VBD
the/DT
transfer/NN
of/IN
the/DT
shares/NNS
is/VBZ
n't/RB
significant/JJ
./.
Investcorp/NNP
,/,
New/NNP
York/NNP
,/,
said/VBD
it/PRP
and/CC
the/DT
management/NN
of/IN
Sports/NNPS
&/CC
Recreation/NNP
Inc./NNP
bought/VBD
the/DT
operator/NN
of/IN
the/DT
10-store/JJ
Sports/NNPS
Unlimited/NNP
chain/NN
for/IN
some/DT
$/$
40/CD
million/CD
./.
The/DT
investment/NN
bank/NN
becomes/VBZ
majority/NN
shareholder/NN
in/IN
Sports/NNPS
&/CC
Recreation/NNP
,/,
a/DT
10-year-old/JJ
sporting/NN
goods/NNS
retailer/NN
,/,
said/VBD
Oliver/NNP
E./NNP
Richardson/NNP
,/,
a/DT
member/NN
of/IN
Investcorp/NNP
's/POS
management/NN
committee/NN
and/CC
a/DT
director/NN
of/IN
the/DT
chain/NN
./.
Sports/NNPS
Unlimited/NNP
,/,
Tampa/NNP
,/,
Fla./NNP
,/,
posted/VBD
revenue/NN
of/IN
$/$
59/CD
million/CD
for/IN
the/DT
year/NN
ended/VBD
July/NNP
31/CD
./.
The/DT
company/NN
is/VBZ
``/``
very/RB
profitable/JJ
''/''
on/IN
an/DT
operating/VBG
basis/NN
,/,
Mr./NNP
Richardson/NNP
said/VBD
,/,
but/CC
he/PRP
declined/VBD
to/TO
specify/VB
numbers/NNS
./.
In/IN
1982/CD
,/,
Sports/NNPS
&/CC
Recreation/NNP
's/POS
managers/NNS
and/CC
certain/JJ
passive/JJ
investors/NNS
purchased/VBD
the/DT
company/NN
from/IN
Brunswick/NNP
Corp./NNP
of/IN
Skokie/NNP
,/,
Ill/NNP
./.
In/IN
the/DT
latest/JJS
transaction/NN
,/,
management/NN
bought/VBD
out/IN
the/DT
passive/JJ
investors/NNS
'/POS
holding/NN
,/,
Mr./NNP
Richardson/NNP
said/VBD
./.
Hammond/NNP
Co./NNP
,/,
Newport/NNP
Beach/NNP
,/,
Calif./NNP
,/,
said/VBD
Fidelity/NNP
National/NNP
Financial/NNP
Inc./NNP
extended/VBD
its/PRP$
previous/JJ
agreement/NN
,/,
under/IN
which/WDT
it/PRP
wo/MD
n't/RB
purchase/VB
any/DT
more/JJR
of/IN
the/DT
mortgage/NN
banker/NN
's/POS
common/JJ
stock/NN
,/,
through/IN
Oct./NNP
31/CD
./.
The/DT
previous/JJ
agreement/NN
expired/VBD
Thursday/NNP
./.
Hammond/NNP
said/VBD
that/IN
its/PRP$
discussions/NNS
with/IN
Fidelity/NNP
,/,
an/DT
Irvine/NNP
,/,
Calif./NNP
,/,
title-insurance/NN
underwriter/NN
,/,
are/VBP
continuing/VBG
,/,
but/CC
that/IN
prospects/NNS
for/IN
a/DT
longer-term/JJ
standstill/NN
agreement/NN
are/VBP
uncertain/JJ
./.
Fidelity/NNP
has/VBZ
increased/VBN
its/PRP$
stake/NN
in/IN
Hammond/NNP
to/TO
23.57/CD
%/NN
in/IN
recent/JJ
months/NNS
./.
Statements/NNS
made/VBN
in/IN
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
filings/NNS
led/VBD
Hammond/NNP
to/TO
request/VB
a/DT
standstill/JJ
agreement/NN
./.
Giant/NNP
Group/NNP
Ltd./NNP
said/VBD
it/PRP
terminated/VBD
negotiations/NNS
for/IN
the/DT
purchase/NN
of/IN
Aspen/NNP
Airways/NNPS
,/,
a/DT
Denver-based/JJ
regional/JJ
carrier/NN
that/WDT
operates/VBZ
the/DT
United/NNP
Express/NNP
connector/NN
service/NN
under/IN
contract/NN
to/TO
UAL/NNP
Corp./NNP
's/POS
United/NNP
Airlines/NNPS
./.
Giant/NNP
,/,
a/DT
Beverly/NNP
Hills/NNPS
,/,
Calif./NNP
,/,
collection/NN
of/IN
companies/NNS
that/WDT
is/VBZ
controlled/VBN
by/IN
Hollywood/NNP
producer/NN
Burt/NNP
Sugarman/NNP
,/,
did/VBD
n't/RB
give/VB
a/DT
reason/NN
for/IN
halting/VBG
its/PRP$
plan/NN
to/TO
acquire/VB
the/DT
airline/NN
,/,
and/CC
Aspen/NNP
officials/NNS
could/MD
n't/RB
be/VB
reached/VBN
for/IN
comment/NN
./.
Giant/NNP
agreed/VBD
last/JJ
month/NN
to/TO
purchase/VB
the/DT
carrier/NN
./.
Giant/NNP
has/VBZ
n't/RB
ever/RB
disclosed/VBN
the/DT
proposed/VBN
price/NN
,/,
although/IN
Avmark/NNP
Inc./NNP
,/,
an/DT
Arlington/NNP
,/,
Va.-based/JJ
aircraft/NN
consulting/VBG
concern/NN
,/,
has/VBZ
valued/VBN
Aspen/NNP
's/POS
fleet/NN
at/IN
about/IN
$/$
46/CD
million/CD
./.
The/DT
airline/NN
would/MD
have/VB
become/VBN
the/DT
latest/JJS
in/IN
a/DT
peculiar/JJ
blend/NN
of/IN
Giant/NNP
companies/NNS
,/,
which/WDT
are/VBP
involved/VBN
in/IN
making/VBG
cement/NN
,/,
recycling/VBG
newsprint/NN
and/CC
operating/VBG
fast-food/NN
restaurants/NNS
./.
The/DT
state-controlled/JJ
insurer/NN
Assurances/NNP
Generales/NNP
de/FW
France/NNP
said/VBD
it/PRP
has/VBZ
obtained/VBN
regulatory/JJ
approval/NN
to/TO
increase/VB
its/PRP$
stake/NN
in/IN
the/DT
financial/JJ
holding/VBG
company/NN
Cie./NNP
de/FW
Navigation/NNP
Mixte/NNP
above/IN
10/CD
%/NN
from/IN
the/DT
current/JJ
level/NN
of/IN
about/IN
8/CD
%/NN
./.
Friday/NNP
's/POS
approval/NN
was/VBD
needed/VBN
to/TO
conform/VB
with/IN
Bourse/NNP
rules/NNS
regarding/VBG
companies/NNS
with/IN
bank/NN
interests/NNS
and/CC
follows/VBZ
a/DT
similar/JJ
approval/NN
given/VBN
Wednesday/NNP
to/TO
Cie/NNP
./.
Financiere/NNP
de/IN
Paribas/NNP
./.
Both/DT
Paribas/NNP
and/CC
AGF/NNP
have/VBP
been/VBN
increasing/VBG
their/PRP$
stakes/NNS
in/IN
Navigation/NNP
Mixte/NNP
recently/RB
for/IN
what/WP
they/PRP
have/VBP
termed/VBN
``/``
investment/NN
purposes/NNS
,/,
''/''
although/IN
the/DT
issue/NN
has/VBZ
been/VBN
surrounded/VBN
by/IN
takeover/NN
speculation/NN
in/IN
recent/JJ
weeks/NNS
./.
AGF/NNP
did/VBD
n't/RB
comment/VB
officially/RB
on/IN
its/PRP$
reasons/NNS
for/IN
seeking/VBG
the/DT
approval/NN
,/,
but/CC
people/NNS
close/JJ
to/TO
the/DT
group/NN
said/VBD
it/PRP
was/VBD
done/VBN
to/TO
make/VB
sure/JJ
the/DT
group/NN
would/MD
have/VB
the/DT
flexibility/NN
to/TO
increase/VB
its/PRP$
stake/NN
in/IN
the/DT
future/NN
,/,
should/MD
interesting/JJ
price/NN
opportunities/NNS
arise/VB
./.
An/DT
AGF/NNP
official/NN
did/VBD
specify/VB
,/,
however/RB
,/,
that/IN
there/EX
was/VBD
no/DT
foundation/NN
to/TO
recent/JJ
rumors/NNS
the/DT
group/NN
might/MD
be/VB
acting/VBG
in/IN
concert/NN
with/IN
Paribas/NNP
./.
Lockheed/NNP
Aeronautical/NNP
Systems/NNPS
Co./NNP
,/,
a/DT
unit/NN
of/IN
Lockheed/NNP
Corp./NNP
,/,
said/VBD
it/PRP
agreed/VBD
to/TO
join/VB
with/IN
Aermacchi/NNP
S.p/NNP
./.
A./NNP
of/IN
Varese/NNP
,/,
Italy/NNP
,/,
to/TO
propose/VB
a/DT
new/JJ
generation/NN
of/IN
jet/NN
trainers/NNS
for/IN
the/DT
U.S./NNP
Air/NNP
Force/NNP
./.
The/DT
Air/NNP
Force/NNP
is/VBZ
looking/VBG
to/TO
buy/VB
540/CD
new/JJ
primary/JJ
jet/NN
trainers/NNS
,/,
with/IN
a/DT
total/JJ
value/NN
of/IN
$/$
1.5/CD
billion/CD
to/TO
$/$
2/CD
billion/CD
,/,
between/IN
1994/CD
and/CC
2004/CD
./.
The/DT
aircraft/NN
would/MD
replace/VB
the/DT
T-37/NN
,/,
made/VBN
by/IN
the/DT
Cessna/NNP
Aircraft/NNP
Co./NNP
unit/NN
of/IN
General/NNP
Dynamics/NNPS
Corp./NNP
,/,
which/WDT
the/DT
Air/NNP
Force/NNP
uses/VBZ
to/TO
train/VB
jet/NN
pilots/NNS
./.
Lockheed/NNP
said/VBD
the/DT
U.S./NNP
Navy/NNP
may/MD
also/RB
buy/VB
an/DT
additional/JJ
340/CD
trainer/NN
aircraft/NN
to/TO
replace/VB
its/PRP$
T34C/CD
trainers/NNS
made/VBN
by/IN
the/DT
Beech/NNP
Aircraft/NNP
Corp./NNP
unit/NN
of/IN
Raytheon/NNP
Corp/NNP
./.
Under/IN
the/DT
agreement/NN
with/IN
Lockheed/NNP
,/,
Aermacchi/NNP
will/MD
license/VB
Lockheed/NNP
to/TO
build/VB
the/DT
Aermacchi/NNP
MB-339/NNP
jet/NN
tandem-trainer/NN
and/CC
will/MD
supply/VB
certain/JJ
structures/NNS
./.
Lockheed/NNP
will/MD
build/VB
additional/JJ
structures/NNS
and/CC
perform/VB
final/JJ
assembly/NN
of/IN
the/DT
tandem-seat/JJ
trainer/NN
at/IN
its/PRP$
Marietta/NNP
,/,
Ga./NNP
,/,
plant/NN
should/MD
the/DT
Air/NNP
Force/NNP
order/VB
the/DT
craft/NN
./.
A/DT
Lockheed/NNP
spokesman/NN
in/IN
Burbank/NNP
,/,
Calif./NNP
,/,
said/VBD
he/PRP
was/VBD
n't/RB
aware/JJ
of/IN
which/WDT
other/JJ
companies/NNS
would/MD
be/VB
competing/VBG
for/IN
the/DT
Air/NNP
Force/NNP
contract/NN
./.
Striking/JJ
auto/NN
workers/NNS
ended/VBD
their/PRP$
19-day/JJ
occupation/NN
of/IN
a/DT
metal/NN
shop/NN
at/IN
a/DT
Peugeot/NNP
S.A./NNP
factory/NN
in/IN
eastern/JJ
France/NNP
Friday/NNP
as/IN
pay/NN
talks/NNS
got/VBD
under/IN
way/NN
in/IN
the/DT
capital/NN
./.
But/CC
the/DT
Peugeot/NNP
breakthrough/NN
came/VBD
as/IN
a/DT
nationwide/JJ
dispute/NN
by/IN
Finance/NNP
Ministry/NNP
employees/NNS
disrupted/VBD
border/NN
checkpoints/NNS
and/CC
threatened/VBD
the/DT
government/NN
's/POS
ability/NN
to/TO
pay/VB
its/PRP$
bills/NNS
./.
The/DT
Peugeot/NNP
metalworkers/NNS
began/VBD
filing/VBG
out/IN
of/IN
the/DT
shop/NN
,/,
which/WDT
makes/VBZ
auto/NN
parts/NNS
,/,
at/IN
the/DT
plant/NN
in/IN
Mulhouse/NNP
after/IN
voting/VBG
589/CD
to/TO
193/CD
to/TO
abandon/VB
the/DT
occupation/NN
./.
Their/PRP$
withdrawal/NN
was/VBD
based/VBN
on/IN
promises/NNS
by/IN
Peugeot/NNP
to/TO
open/VB
negotiations/NNS
in/IN
Paris/NNP
at/IN
the/DT
same/JJ
time/NN
the/DT
last/JJ
man/NN
left/VBD
the/DT
premises/NNS
./.
The/DT
strike/NN
by/IN
customs/NNS
officers/NNS
,/,
tax/NN
collectors/NNS
,/,
treasury/NN
workers/NNS
and/CC
other/JJ
civil/JJ
servants/NNS
attached/VBN
to/TO
the/DT
Ministry/NNP
of/IN
Finance/NNP
may/MD
pose/VB
a/DT
more/RBR
serious/JJ
challenge/NN
to/TO
the/DT
government/NN
and/CC
the/DT
average/JJ
Frenchman/NNP
./.
Ministry/NNP
employees/NNS
complain/VBP
that/IN
they/PRP
are/VBP
poorly/RB
paid/VBN
because/IN
of/IN
a/DT
complex/JJ
job-rating/JJ
system/NN
they/PRP
say/VBP
fails/VBZ
to/TO
take/VB
into/IN
account/NN
their/PRP$
education/NN
and/CC
level/NN
of/IN
technical/JJ
expertise/NN
./.
The/DT
market/NN
for/IN
$/$
200/CD
billion/CD
of/IN
high-risk/JJ
junk/NN
bonds/NNS
,/,
battered/VBN
by/IN
a/DT
succession/NN
of/IN
defaults/NNS
and/CC
huge/JJ
price/NN
declines/NNS
this/DT
year/NN
,/,
practically/RB
vanished/VBD
Friday/NNP
./.
Trading/NN
ground/VBD
to/TO
a/DT
halt/NN
as/IN
investors/NNS
rushed/VBD
to/TO
sell/VB
bonds/NNS
,/,
only/RB
to/TO
find/VB
themselves/PRP
deserted/VBN
by/IN
potential/JJ
buyers/NNS
./.
Stunned/VBN
,/,
they/PRP
watched/VBD
brokerage/NN
houses/NNS
mark/VB
down/IN
price/NN
quotations/NNS
on/IN
their/PRP$
junk/NN
holdings/NNS
while/IN
being/VBG
able/JJ
to/TO
execute/VB
very/RB
few/JJ
actual/JJ
trades/NNS
./.
``/``
The/DT
junk/NN
bond/NN
market/NN
is/VBZ
in/IN
a/DT
state/NN
of/IN
gridlock/NN
now/RB
--/:
there/EX
are/VBP
no/DT
bids/NNS
,/,
only/RB
offers/NNS
,/,
''/''
says/VBZ
independent/JJ
investor/NN
Martin/NNP
D./NNP
Sass/NNP
,/,
who/WP
manages/VBZ
nearly/RB
$/$
4/CD
billion/CD
and/CC
who/WP
recently/RB
decided/VBD
to/TO
buy/VB
distressed/JJ
securities/NNS
for/IN
a/DT
new/JJ
fund/NN
./.
This/DT
calamity/NN
is/VBZ
``/``
far/RB
from/IN
over/IN
,/,
''/''
he/PRP
says/VBZ
./.
Junk/NN
's/POS
collapse/NN
helped/VBD
stoke/VB
the/DT
panicky/JJ
selling/NN
of/IN
stocks/NNS
that/WDT
produced/VBD
the/DT
deepest/JJS
one-day/JJ
dive/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
since/IN
the/DT
Oct./NNP
19/CD
,/,
1987/CD
,/,
crash/NN
./.
Simultaneously/RB
,/,
it/PRP
also/RB
helped/VBD
trigger/VB
this/DT
year/NN
's/POS
biggest/JJS
rally/NN
in/IN
the/DT
U.S./NNP
government/NN
bond/NN
market/NN
as/IN
investors/NNS
rushed/VBD
to/TO
move/VB
capital/NN
into/IN
the/DT
highest-quality/NN
securities/NNS
they/PRP
could/MD
find/VB
./.
But/CC
``/``
an/DT
eerie/JJ
silence/NN
pervaded/VBD
''/''
the/DT
junk/NN
market/NN
Friday/NNP
as/IN
prices/NNS
tumbled/VBD
on/IN
hundreds/NNS
of/IN
high-yield/JJ
bonds/NNS
despite/IN
``/``
no/DT
active/JJ
trading/NN
,/,
''/''
says/VBZ
John/NNP
Lonski/NNP
,/,
an/DT
economist/NN
at/IN
Moody/NNP
's/POS
Investors/NNPS
Service/NNP
Inc/NNP
./.
For/IN
example/NN
,/,
the/DT
price/NN
of/IN
Southland/NNP
Corp./NNP
's/POS
$/$
500/CD
million/CD
of/IN
16/CD
3\/4/CD
%/NN
bonds/NNS
due/JJ
2002/CD
--/:
sold/VBD
less/JJR
than/IN
two/CD
years/NNS
ago/IN
by/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
--/:
plummeted/VBD
25/CD
%/NN
to/TO
just/RB
30/CD
cents/NNS
on/IN
the/DT
dollar/NN
./.
But/CC
not/RB
even/RB
Goldman/NNP
would/MD
make/VB
a/DT
market/NN
in/IN
the/DT
securities/NNS
of/IN
Southland/NNP
,/,
the/DT
owner/NN
of/IN
the/DT
nationwide/JJ
chain/NN
of/IN
7-11/CD
convenience/NN
stores/NNS
that/WDT
is/VBZ
strapped/VBN
for/IN
cash/NN
./.
Goldman/NNP
officials/NNS
declined/VBD
to/TO
comment/VB
./.
Junk/NN
bonds/NNS
,/,
which/WDT
mushroomed/VBD
from/IN
less/RBR
than/IN
$/$
2/CD
billion/CD
at/IN
the/DT
start/NN
of/IN
this/DT
decade/NN
,/,
have/VBP
been/VBN
declining/VBG
for/IN
months/NNS
as/IN
issuer/NN
after/IN
issuer/NN
sank/VBD
beneath/IN
the/DT
weight/NN
of/IN
hefty/JJ
interest/NN
payments/NNS
./.
The/DT
shaky/JJ
market/NN
received/VBD
its/PRP$
biggest/JJS
jolt/NN
last/JJ
month/NN
from/IN
Campeau/NNP
Corp./NNP
,/,
which/WDT
created/VBD
its/PRP$
U.S./NNP
retailing/NN
empire/NN
with/IN
junk/NN
financing/NN
./.
Campeau/NNP
developed/VBD
a/DT
cash/NN
squeeze/NN
that/WDT
caused/VBD
it/PRP
to/TO
be/VB
tardy/JJ
on/IN
some/DT
interest/NN
payments/NNS
and/CC
to/TO
put/VB
its/PRP$
prestigious/JJ
Bloomingdales/NNP
department-store/JJ
chain/NN
up/IN
for/IN
sale/NN
./.
Now/RB
,/,
dozens/NNS
of/IN
corporations/NNS
,/,
including/VBG
Ethan/NNP
Allen/NNP
,/,
TW/NNP
Services/NNPS
and/CC
York/NNP
International/NNP
,/,
that/WDT
are/VBP
counting/VBG
on/IN
at/IN
least/JJS
$/$
7/CD
billion/CD
of/IN
scheduled/VBN
new/JJ
junk/NN
financings/NNS
to/TO
keep/VB
their/PRP$
highly/RB
leveraged/JJ
takeovers/NNS
and/CC
buy-outs/NNS
afloat/RB
,/,
may/MD
never/RB
get/VB
the/DT
money/NN
./.
``/``
The/DT
music/NN
has/VBZ
stopped/VBN
playing/VBG
,/,
''/''
says/VBZ
Michael/NNP
Harkins/NNP
,/,
a/DT
principal/NN
in/IN
the/DT
investment/NN
firm/NN
of/IN
Levy/NNP
Harkins/NNP
./.
``/``
You/PRP
've/VBP
either/RB
got/VBN
a/DT
chair/NN
or/CC
you/PRP
do/VBP
n't/RB
./.
''/''
In/IN
Friday/NNP
's/POS
aftermath/NN
,/,
says/VBZ
R./NNP
Douglas/NNP
Carleton/NNP
,/,
a/DT
director/NN
of/IN
high-yield/JJ
finance/NN
at/IN
First/NNP
Boston/NNP
Corp./NNP
,/,
``/``
much/RB
of/IN
the/DT
$/$
7/CD
billion/CD
forward/JJ
calendar/NN
could/MD
be/VB
deferred/VBN
,/,
depending/VBG
on/IN
the/DT
hysteria/NN
./.
''/''
In/IN
August/NNP
,/,
First/NNP
Boston/NNP
withdrew/VBD
a/DT
$/$
475/CD
million/CD
junk/NN
offering/VBG
of/IN
Ohio/NNP
Mattress/NNP
bonds/NNS
because/IN
potential/JJ
buyers/NNS
were/VBD
``/``
very/RB
skittish/JJ
./.
''/''
The/DT
outlook/NN
``/``
looks/VBZ
shaky/JJ
because/IN
we/PRP
're/VBP
still/RB
waiting/VBG
''/''
for/IN
mutual/JJ
funds/NNS
,/,
in/IN
particular/JJ
,/,
to/TO
dump/VB
some/DT
of/IN
their/PRP$
junk/NN
bond/NN
holdings/NNS
to/TO
pay/VB
off/IN
redemptions/NNS
by/IN
individual/JJ
investors/NNS
,/,
says/VBZ
King/NNP
Penniman/NNP
,/,
senior/JJ
vice/NN
president/NN
at/IN
McCarthy/NNP
,/,
Crisanti/NNP
&/CC
Maffei/NNP
,/,
an/DT
investment/NN
arm/NN
of/IN
Xerox/NNP
Financial/NNP
Services/NNPS
./.
Indeed/RB
,/,
a/DT
Moody/NNP
's/POS
index/NN
that/WDT
tracks/VBZ
the/DT
net/JJ
asset/NN
values/NNS
of/IN
24/CD
high-yield/JJ
mutual/JJ
funds/NNS
declined/VBD
for/IN
the/DT
17th/JJ
consecutive/JJ
day/NN
Friday/NNP
./.
In/IN
a/DT
stark/JJ
contrast/NN
,/,
the/DT
benchmark/JJ
30-year/JJ
Treasury/NNP
bond/NN
climbed/VBD
more/JJR
than/IN
2/CD
1\/2/CD
points/NNS
,/,
or/CC
about/IN
$/$
25/CD
for/IN
each/DT
$/$
1,000/CD
face/NN
amount/NN
,/,
to/TO
103/CD
12\/32/CD
,/,
its/PRP$
biggest/JJS
gain/NN
of/IN
the/DT
year/NN
./.
The/DT
bond/NN
's/POS
yield/NN
dropped/VBD
to/TO
7.82/CD
%/NN
,/,
the/DT
lowest/JJS
since/IN
March/NNP
31/CD
,/,
1987/CD
,/,
according/VBG
to/TO
Technical/NNP
Data/NNP
Global/NNP
Markets/NNPS
Group/NNP
./.
The/DT
yield/NN
on/IN
three-month/JJ
Treasury/NNP
bills/NNS
,/,
considered/VBD
the/DT
safest/JJS
of/IN
all/DT
investments/NNS
,/,
plummeted/VBD
about/IN
0.7/CD
percentage/NN
point/NN
to/TO
7.16/CD
%/NN
,/,
the/DT
largest/JJS
one-day/JJ
decline/NN
since/IN
1982/CD
./.
The/DT
main/JJ
catalyst/NN
for/IN
government/NN
bond/NN
market/NN
rally/NN
was/VBD
the/DT
190.58-point/JJ
drop/NN
in/IN
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
./.
``/``
When/WRB
you/PRP
get/VBP
panic/NN
in/IN
one/CD
market/NN
,/,
you/PRP
get/VBP
flight/NN
to/TO
quality/NN
in/IN
the/DT
other/JJ
,/,
''/''
said/VBD
Maria/NNP
Ramirez/NNP
,/,
money/NN
market/NN
economist/NN
at/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc/NNP
./.
Nevertheless/RB
,/,
the/DT
problems/NNS
of/IN
the/DT
junk/NN
market/NN
could/MD
prompt/VB
the/DT
Federal/NNP
Reserve/NNP
to/TO
ease/VB
credit/NN
in/IN
the/DT
months/NNS
ahead/RB
./.
``/``
This/DT
marks/VBZ
a/DT
significant/JJ
shift/NN
in/IN
the/DT
interest/NN
rate/NN
outlook/NN
,/,
''/''
says/VBZ
William/NNP
Sullivan/NNP
,/,
director/NN
of/IN
money/NN
market/NN
research/NN
at/IN
Dean/NNP
Witter/NNP
Reynolds/NNP
Inc./NNP
,/,
New/NNP
York/NNP
./.
Any/DT
sustained/VBN
credit-easing/NN
could/MD
be/VB
a/DT
lift/NN
for/IN
junk/NN
bonds/NNS
as/RB
well/RB
as/IN
other/JJ
securities/NNS
./.
Robert/NNP
Dow/NNP
,/,
a/DT
partner/NN
and/CC
portfolio/NN
manager/NN
at/IN
Lord/NNP
,/,
Abbett/NNP
&/CC
Co./NNP
,/,
which/WDT
manages/VBZ
$/$
4/CD
billion/CD
of/IN
high-yield/JJ
bonds/NNS
,/,
says/VBZ
he/PRP
does/VBZ
n't/RB
``/``
think/VB
there/EX
is/VBZ
any/DT
fundamental/JJ
economic/JJ
rationale/NN
the/DT
junk/NN
bond/NN
rout/NN
It/PRP
was/VBD
herd/NN
instinct/NN
./.
''/''
He/PRP
adds/VBZ
:/:
``/``
The/DT
junk/NN
market/NN
has/VBZ
witnessed/VBN
some/DT
trouble/NN
and/CC
now/RB
some/DT
people/NNS
think/VBP
that/IN
if/IN
the/DT
equity/NN
market/NN
gets/VBZ
creamed/VBN
that/DT
means/VBZ
the/DT
economy/NN
will/MD
be/VB
terrible/JJ
and/CC
that/DT
's/VBZ
bad/JJ
for/IN
junk/NN
./.
I/PRP
do/VBP
n't/RB
believe/VB
that/DT
's/VBZ
the/DT
case/NN
,/,
but/CC
I/PRP
believe/VBP
that/IN
people/NNS
are/VBP
running/RB
scared/VBN
./.
There/EX
is/VBZ
a/DT
flight/NN
to/TO
quality/NN
,/,
and/CC
the/DT
quality/NN
is/VBZ
not/RB
in/IN
equities/NNS
and/CC
not/RB
in/IN
junk/NN
--/:
it/PRP
's/VBZ
in/IN
Treasurys/NNS
./.
''/''
Even/RB
as/IN
trading/NN
in/IN
high-yield/JJ
issues/NNS
dried/VBN
up/IN
over/IN
the/DT
past/JJ
month/NN
,/,
corporations/NNS
sold/VBD
more/JJR
than/IN
$/$
2/CD
billion/CD
of/IN
new/JJ
junk/NN
bonds/NNS
./.
For/IN
example/NN
,/,
a/DT
recent/JJ
$/$
375/CD
million/CD
offering/NN
of/IN
Petrolane/NNP
Gas/NNP
Services/NNPS
L.P./NNP
bonds/NNS
sold/VBN
by/IN
First/NNP
Boston/NNP
was/VBD
three/CD
times/NNS
oversubscribed/VBN
./.
A/DT
$/$
550/CD
million/CD
offering/NN
of/IN
Turner/NNP
Broadcasting/NNP
System/NNP
Inc/NNP
./.
high-yield/JJ
securities/NNS
sold/VBD
last/JJ
week/NN
by/IN
Drexel/NNP
was/VBD
increased/VBN
$/$
50/CD
million/CD
because/IN
of/IN
strong/JJ
demand/NN
./.
First/NNP
Boston/NNP
estimates/VBZ
that/IN
in/IN
November/NNP
and/CC
December/NNP
alone/RB
,/,
junk/NN
bond/NN
investors/NNS
will/MD
receive/VB
$/$
4.8/CD
billion/CD
of/IN
coupon/NN
interest/NN
payments/NNS
./.
``/``
That/DT
's/VBZ
a/DT
clear/JJ
indication/NN
that/IN
there/EX
is/VBZ
and/CC
will/MD
be/VB
an/DT
undercurrent/NN
of/IN
basic/JJ
business/NN
going/VBG
on/IN
,/,
''/''
says/VBZ
Mr./NNP
Carleton/NNP
of/IN
First/NNP
Boston/NNP
./.
``/``
I/PRP
do/VBP
n't/RB
know/VB
how/WRB
people/NNS
can/MD
say/VB
the/DT
junk/NN
bond/NN
market/NN
disappeared/VBD
when/WRB
there/EX
were/VBD
$/$
1.5/CD
billion/CD
of/IN
orders/NNS
for/IN
$/$
550/CD
million/CD
of/IN
junk/NN
bonds/NNS
sold/VBD
last/JJ
week/NN
by/IN
Turner/NNP
,/,
''/''
says/VBZ
Raymond/NNP
Minella/NNP
,/,
co-head/NN
of/IN
merchant/NN
banking/NN
at/IN
Merrill/NNP
Lynch/NNP
&/CC
Co/NNP
./.
``/``
When/WRB
the/DT
rally/NN
comes/VBZ
,/,
insurance/NN
companies/NNS
will/MD
be/VB
leading/VBG
it/PRP
because/IN
they/PRP
have/VBP
billions/NNS
to/TO
invest/VB
and/CC
invest/VB
they/PRP
will/MD
./.
There/EX
is/VBZ
plenty/NN
of/IN
money/NN
available/JJ
from/IN
people/NNS
who/WP
want/VBP
to/TO
buy/VB
well-structured/JJ
deals/NNS
;/:
it/PRP
's/VBZ
the/DT
stuff/NN
that/WDT
's/VBZ
financed/VBN
on/IN
a/DT
shoestring/NN
that/IN
people/NNS
are/VBP
wary/JJ
of/IN
./.
''/''
But/CC
such/JJ
highly/RB
leveraged/JJ
transactions/NNS
seemed/VBD
to/TO
have/VB
multiplied/VBN
this/DT
year/NN
,/,
casting/VBG
a/DT
pall/NN
over/IN
much/RB
of/IN
the/DT
junk/NN
market/NN
./.
Michael/NNP
McNamara/NNP
,/,
director/NN
of/IN
fixed-income/NN
research/NN
at/IN
Kemper/NNP
Financial/NNP
Services/NNPS
,/,
says/VBZ
the/DT
quality/NN
of/IN
junk/NN
issues/NNS
has/VBZ
been/VBN
getting/VBG
poorer/JJR
,/,
contributing/VBG
to/TO
the/DT
slide/NN
in/IN
prices/NNS
./.
``/``
Last/JJ
year/NN
we/PRP
probably/RB
bought/VBD
one/CD
out/IN
of/IN
every/DT
three/CD
new/JJ
deals/NNS
,/,
''/''
he/PRP
says/VBZ
./.
``/``
This/DT
year/NN
,/,
at/IN
best/RB
,/,
it/PRP
's/VBZ
in/IN
one/CD
in/IN
every/DT
five/CD
or/CC
six/CD
./.
And/CC
our/PRP$
credit/NN
standards/NNS
have/VBP
n't/RB
changed/VBN
one/CD
iota/NN
./.
''/''
However/RB
,/,
Mr./NNP
McNamara/NNP
said/VBD
the/DT
slide/NN
in/IN
junk/NN
is/VBZ
creating/VBG
``/``
one/CD
hell/NN
of/IN
a/DT
buying/VBG
opportunity/NN
''/''
for/IN
selective/JJ
buyers/NNS
./.
For/IN
the/DT
moment/NN
,/,
investors/NNS
seem/VBP
more/RBR
preoccupied/VBN
with/IN
the/DT
``/``
bad/JJ
''/''
junk/NN
than/IN
the/DT
``/``
good/JJ
''/''
junk/NN
./.
``/``
The/DT
market/NN
has/VBZ
been/VBN
weak/JJ
since/IN
''/''
the/DT
announcement/NN
of/IN
the/DT
Campeau/NNP
cash/NN
squeeze/NN
and/CC
the/DT
company/NN
's/POS
subsequent/JJ
bailout/NN
by/IN
Olympia/NNP
&/CC
York/NNP
,/,
says/VBZ
Mr./NNP
Minella/NNP
of/IN
Merrill/NNP
Lynch/NNP
./.
``/``
That/DT
really/RB
affected/VBD
the/DT
market/NN
in/IN
that/IN
people/NNS
started/VBD
to/TO
ask/VB
`/``
What/WP
else/RB
is/VBZ
in/IN
trouble/NN
?/.
'/''
''/''
Well/RB
before/IN
Campeau/NNP
,/,
though/RB
,/,
there/EX
were/VBD
signs/NNS
that/IN
the/DT
junk/NN
market/NN
was/VBD
stumbling/VBG
through/IN
one/CD
of/IN
its/PRP$
worst/JJS
years/NNS
ever/RB
./.
Despite/IN
the/DT
relatively/RB
strong/JJ
economy/NN
,/,
junk/NN
bond/NN
prices/NNS
did/VBD
nothing/NN
except/IN
go/VB
down/IN
,/,
hammered/VBN
by/IN
a/DT
seemingly/RB
endless/JJ
trail/NN
of/IN
bad/JJ
news/NN
:/:
--/:
In/IN
June/NNP
,/,
two/CD
months/NNS
before/IN
it/PRP
would/MD
default/VB
on/IN
interest/NN
payments/NNS
covering/VBG
some/DT
of/IN
its/PRP$
$/$
1.2/CD
billion/CD
of/IN
speculative/JJ
debt/NN
securities/NNS
,/,
New/NNP
York-based/JJ
Integrated/NNP
Resources/NNPS
Inc./NNP
said/VBD
it/PRP
ran/VBD
out/IN
of/IN
borrowed/VBN
money/NN
./.
--/:
In/IN
July/NNP
,/,
Southmark/NNP
Corp./NNP
,/,
the/DT
Dallas-based/JJ
real/JJ
estate/NN
and/CC
financial/JJ
services/NNS
company/NN
with/IN
about/IN
$/$
1.3/CD
billion/CD
of/IN
junk/NN
bonds/NNS
,/,
voluntarily/RB
filed/VBN
for/IN
protection/NN
under/IN
U.S./NNP
bankruptcy/NN
law/NN
./.
--/:
By/IN
the/DT
end/NN
of/IN
July/NNP
,/,
the/DT
difference/NN
in/IN
yield/NN
between/IN
an/DT
index/NN
of/IN
junk/NN
bonds/NNS
and/CC
seven-year/JJ
Treasury/NN
notes/NNS
widened/VBD
to/TO
more/RBR
than/IN
5.5/CD
percentage/NN
points/NNS
./.
--/:
In/IN
August/NNP
,/,
Resorts/NNPS
International/NNP
Inc./NNP
,/,
which/WDT
sold/VBD
more/JJR
than/IN
$/$
500/CD
million/CD
of/IN
junk/NN
bonds/NNS
,/,
suspended/VBN
interest/NN
payments/NNS
./.
--/:
In/IN
September/NNP
,/,
just/RB
as/IN
the/DT
cash/NN
squeeze/NN
hit/VBD
Campeau/NNP
,/,
Lomas/NNP
Financial/NNP
Corp./NNP
defaulted/VBD
on/IN
$/$
145/CD
million/CD
of/IN
notes/NNS
and/CC
appeared/VBD
unlikely/JJ
to/TO
pay/VB
interest/NN
on/IN
a/DT
total/NN
of/IN
$/$
1.2/CD
billion/CD
of/IN
debt/NN
securities/NNS
./.
Meantime/RB
,/,
regulators/NNS
are/VBP
becoming/VBG
increasingly/RB
worried/VBN
as/IN
the/DT
rush/NN
to/TO
leverage/VB
shows/VBZ
no/DT
signs/NNS
of/IN
abating/VBG
./.
Moody/NNP
's/POS
says/VBZ
the/DT
frequency/NN
of/IN
corporate/JJ
credit/NN
downgrades/NNS
is/VBZ
the/DT
highest/JJS
this/DT
year/NN
since/IN
1982/CD
./.
In/IN
addition/NN
,/,
there/EX
are/VBP
six/CD
times/NNS
as/IN
many/JJ
troubled/VBN
banks/NNS
as/IN
there/EX
were/VBD
in/IN
the/DT
recession/NN
of/IN
1981/CD
,/,
according/VBG
to/TO
the/DT
Federal/NNP
Deposit/NNP
Insurance/NNP
Corp/NNP
./.
``/``
The/DT
era/NN
of/IN
the/DT
1980s/CD
is/VBZ
about/IN
compound/JJ
interest/NN
and/CC
the/DT
reaching/NN
for/IN
it/PRP
,/,
''/''
says/VBZ
James/NNP
Grant/NNP
,/,
editor/NN
of/IN
Grant/NNP
's/POS
Interest/NNP
Rate/NNP
Observer/NNP
,/,
an/DT
early/JJ
critic/NN
of/IN
the/DT
junk/NN
bond/NN
market/NN
./.
``/``
What/WP
we/PRP
've/VBP
begun/VBN
to/TO
see/VB
is/VBZ
the/DT
damage/NN
to/TO
businesses/NNS
of/IN
paying/VBG
exorbitant/JJ
compound/NN
interest/NN
./.
Businesses/NNS
were/VBD
borrowing/VBG
at/IN
interest/NN
rates/NNS
higher/JJR
than/IN
their/PRP$
own/JJ
earnings/NNS
./.
What/WP
we/PRP
're/VBP
seeing/VBG
now/RB
is/VBZ
the/DT
wrenching/VBG
readjustment/NN
of/IN
asset/NN
values/NNS
to/TO
a/DT
future/NN
when/WRB
speculative-grade/JJ
debt/NN
will/MD
be/VB
hard/JJ
to/TO
obtain/VB
rather/RB
than/IN
easy/JJ
./.
''/''
Friday/NNP
's/POS
Market/NNP
Activity/NNP
Prices/NNS
of/IN
Treasury/NNP
bonds/NNS
surged/VBD
in/IN
the/DT
biggest/JJS
rally/NN
of/IN
the/DT
year/NN
as/IN
investors/NNS
fled/VBD
a/DT
plummeting/VBG
stock/NN
market/NN
./.
The/DT
benchmark/NN
30-year/JJ
Treasury/NN
bond/NN
was/VBD
quoted/VBN
6/CD
p.m./NN
EDT/NNP
at/IN
103/CD
12\/32/CD
,/,
compared/VBN
with/IN
100/CD
27\/32/CD
Thursday/NNP
,/,
up/IN
2/CD
1\/2/CD
points/NNS
./.
The/DT
yield/NN
on/IN
the/DT
benchmark/NN
fell/VBD
to/TO
7.82/CD
%/NN
,/,
the/DT
lowest/JJS
since/IN
March/NNP
31/CD
,/,
1987/CD
,/,
according/VBG
to/TO
Technical/NNP
Data/NNP
Global/NNP
Markets/NNPS
Group/NNP
./.
The/DT
``/``
flight/NN
to/TO
quality/NN
''/''
began/VBD
late/RB
in/IN
the/DT
day/NN
and/CC
followed/VBD
a/DT
precipitous/JJ
fall/NN
in/IN
the/DT
stock/NN
market/NN
./.
Treasurys/NNS
opened/VBD
lower/JJR
,/,
reacting/VBG
negatively/RB
to/TO
news/NN
that/IN
the/DT
producer/NN
price/NN
index/NN
--/:
a/DT
measure/NN
of/IN
inflation/NN
on/IN
the/DT
wholesale/JJ
level/NN
--/:
accelerated/VBD
in/IN
September/NNP
./.
Bond/NN
prices/NNS
barely/RB
budged/VBD
until/IN
midday/NN
./.
Many/JJ
bond/NN
market/NN
participants/NNS
will/MD
be/VB
closely/RB
eying/VBG
the/DT
action/NN
of/IN
the/DT
Federal/NNP
Reserve/NNP
,/,
which/WDT
might/MD
repeat/VB
its/PRP$
October/NNP
1987/CD
injection/NN
of/IN
huge/JJ
amounts/NNS
of/IN
liquidity/NN
to/TO
buoy/VB
the/DT
financial/JJ
markets/NNS
and/CC
keep/VB
the/DT
economy/NN
from/IN
slowing/VBG
into/IN
a/DT
recession/NN
./.
Prices/NNS
of/IN
municipals/NNS
,/,
investment-grade/JJ
corporates/NNS
and/CC
mortgage-backed/JJ
bonds/NNS
also/RB
rose/VBD
,/,
but/CC
lagged/VBD
behind/IN
their/PRP$
Treasury/NN
counterparts/NNS
./.
Mortgage/NN
securities/NNS
rose/VBD
in/IN
hectic/JJ
trading/NN
,/,
with/IN
most/JJS
of/IN
the/DT
activity/NN
concentrated/VBN
in/IN
Government/NNP
National/NNP
Mortgage/NNP
Association/NNP
9/CD
%/NN
coupon/NN
securities/NNS
,/,
the/DT
most/RBS
liquid/JJ
mortgage/NN
issue/NN
./.
The/DT
Ginnie/NNP
Mae/NNP
November/NNP
9/CD
%/NN
issue/NN
ended/VBD
at/IN
98/CD
25\/32/CD
,/,
up/IN
7\/8/CD
point/NN
on/IN
the/DT
day/NN
,/,
to/TO
yield/VB
about/IN
9.28/CD
%/NN
to/TO
a/DT
12-year/JJ
average/NN
life/NN
assumption/NN
./.
Investment-grade/JJ
corporate/JJ
bonds/NNS
were/VBD
up/IN
about/IN
1\/2/CD
to/TO
3\/4/CD
point/NN
./.
But/CC
the/DT
yield/NN
spread/VBD
between/IN
lower-quality/NN
,/,
investment-grade/JJ
issues/NNS
and/CC
higher-quality/NN
bonds/NNS
widened/VBD
./.
And/CC
the/DT
yields/NNS
on/IN
telephone/NN
and/CC
utility/NN
issues/NNS
rose/VBD
relative/JJ
to/TO
other/JJ
investment-grade/JJ
bonds/NNS
in/IN
anticipation/NN
of/IN
this/DT
week/NN
's/POS
$/$
3/CD
billion/CD
bond/NN
offering/VBG
by/IN
the/DT
Tennessee/NNP
Valley/NNP
Authority/NNP
./.
Despite/IN
rumors/NNS
that/IN
the/DT
TVA/NNP
's/POS
long-awaited/JJ
offering/NN
would/MD
be/VB
postponed/VBN
because/IN
of/IN
the/DT
debacle/NN
in/IN
the/DT
equity/NN
markets/NNS
,/,
sources/NNS
in/IN
the/DT
underwriting/NN
syndicate/NN
said/VBD
they/PRP
expect/VBP
the/DT
issue/NN
will/MD
be/VB
priced/VBN
as/IN
scheduled/VBN
./.
One/CD
of/IN
the/DT
sources/NNS
said/VBD
the/DT
smaller/JJR
portions/NNS
of/IN
$/$
750/CD
million/CD
each/DT
of/IN
five-year/JJ
and/CC
10-year/JJ
bonds/NNS
have/VBP
already/RB
been/VBN
``/``
substantially/RB
oversubscribed/VBN
./.
''/''
Municipal/JJ
bonds/NNS
rose/VBD
as/RB
much/RB
as/IN
3\/4/CD
point/NN
./.
Roger/NNP
Lowenstein/NNP
contributed/VBD
to/TO
this/DT
article/NN
./.
Friday/NNP
's/POS
190-point/JJ
plunge/NN
in/IN
stocks/NNS
does/VBZ
not/RB
come/VBN
atop/IN
the/DT
climate/NN
of/IN
anxiety/NN
that/WDT
dominated/VBD
financial/JJ
markets/NNS
just/RB
prior/RB
to/TO
their/PRP$
1987/CD
October/NNP
crash/NN
,/,
and/CC
mechanisms/NNS
have/VBP
been/VBN
put/VBN
in/IN
place/NN
to/TO
keep/VB
markets/NNS
more/RBR
orderly/JJ
./.
Still/RB
,/,
the/DT
lesson/NN
is/VBZ
about/IN
the/DT
same/JJ
:/:
On/IN
Friday/NNP
the/DT
13th/JJ
,/,
the/DT
market/NN
was/VBD
spooked/VBN
by/IN
Washington/NNP
./.
The/DT
consensus/NN
along/IN
the/DT
street/NN
seems/VBZ
to/TO
be/VB
that/IN
the/DT
plunge/NN
was/VBD
triggered/VBN
by/IN
the/DT
financing/VBG
problems/NNS
of/IN
the/DT
UAL/NNP
takeover/NN
,/,
and/CC
it/PRP
's/VBZ
certainly/RB
true/JJ
the/DT
rout/NN
began/VBD
immediately/RB
after/IN
the/DT
UAL/NNP
trading/NN
halt/NN
./.
Still/RB
,/,
the/DT
consensus/NN
seems/VBZ
almost/RB
as/RB
wide/JJ
that/IN
one/CD
faltering/VBG
bid/NN
is/VBZ
no/DT
reason/NN
to/TO
write/VB
down/IN
the/DT
value/NN
of/IN
all/DT
U.S./NNP
business/NN
./.
This/DT
observation/NN
leads/VBZ
us/PRP
to/TO
another/DT
piece/NN
of/IN
news/NN
moving/VBG
on/IN
the/DT
Dow/NNP
Jones/NNP
ticker/NN
shortly/RB
before/IN
the/DT
downturn/NN
:/:
the/DT
success/NN
of/IN
Senate/NNP
Democrats/NNPS
in/IN
stalling/VBG
the/DT
capital/NN
gains/NNS
tax/NN
cut/NN
./.
The/DT
real/JJ
value/NN
of/IN
all/DT
shares/NNS
,/,
after/IN
all/DT
,/,
is/VBZ
directly/RB
impacted/VBN
by/IN
the/DT
tax/NN
on/IN
any/DT
profits/NNS
all/PDT
the/DT
more/RBR
so/RB
given/VBN
the/DT
limits/NNS
on/IN
deductions/NNS
for/IN
losses/NNS
that/WDT
show/VBP
gains/NNS
are/VBP
not/RB
``/``
ordinary/JJ
income/NN
''/''
)/)
./.
And/CC
market/NN
expectations/NNS
clearly/RB
have/VBP
been/VBN
raised/VBN
by/IN
the/DT
capital/NN
gains/NNS
victory/NN
in/IN
the/DT
House/NN
last/JJ
month/NN
./.
An/DT
hour/NN
before/IN
Friday/NNP
's/POS
plunge/NN
,/,
that/DT
provision/NN
was/VBD
stripped/VBN
from/IN
the/DT
tax/NN
bill/NN
,/,
leaving/VBG
it/PRP
with/IN
$/$
5.4/CD
billion/CD
in/IN
tax/NN
increases/NNS
without/IN
a/DT
capital/NN
gains/NNS
cut/NN
./.
There/EX
is/VBZ
a/DT
great/JJ
deal/NN
to/TO
be/VB
said/VBN
,/,
to/TO
be/VB
sure/JJ
,/,
for/IN
stripping/VBG
the/DT
garbage/NN
out/IN
of/IN
the/DT
reconciliation/NN
bill/NN
./.
It/PRP
would/MD
be/VB
a/DT
good/JJ
thing/NN
if/IN
Congress/NNP
started/VBD
to/TO
decide/VB
issues/NNS
one-by-one/JJ
on/IN
their/PRP$
individual/JJ
merits/NNS
without/IN
trickery/NN
./.
For/IN
one/CD
thing/NN
,/,
no/DT
one/CD
doubts/VBZ
that/IN
the/DT
capital/NN
gains/NNS
cut/NN
would/MD
pass/VB
on/IN
an/DT
up-or-down/JJ
vote/NN
./.
Since/IN
Senate/NNP
leaders/NNS
have/VBP
so/RB
far/RB
fogged/JJ
it/PRP
up/IN
with/IN
procedural/JJ
smokescreens/NNS
,/,
promises/NNS
of/IN
a/DT
cleaner/JJR
bill/NN
are/VBP
suspect/JJ
./.
Especially/RB
so/RB
since/IN
President/NNP
Bush/NNP
has/VBZ
been/VBN
weakened/VBN
by/IN
the/DT
Panama/NNP
fiasco/NN
./.
To/TO
the/DT
extent/NN
that/IN
the/DT
UAL/NNP
troubles/NNS
contributed/VBD
to/TO
the/DT
plunge/NN
,/,
they/PRP
are/VBP
another/DT
instance/NN
of/IN
Washington/NNP
's/POS
sticky/JJ
fingers/NNS
./.
As/IN
the/DT
best/JJS
opportunities/NNS
for/IN
corporate/JJ
restructurings/NNS
are/VBP
exhausted/VBN
of/IN
course/NN
,/,
at/IN
some/DT
point/NN
the/DT
market/NN
will/MD
start/VB
to/TO
reject/VB
them/PRP
./.
But/CC
the/DT
airlines/NNS
are/VBP
scarcely/RB
a/DT
clear/JJ
case/NN
,/,
given/VBN
anti-takeover/JJ
mischief/NN
by/IN
Secretary/NNP
of/IN
Transportation/NNP
Skinner/NNP
,/,
who/WP
professes/VBZ
to/TO
believe/VB
safety/NN
will/MD
be/VB
compromised/VBN
if/IN
KLM/NNP
and/CC
British/NNP
Airways/NNPS
own/VBP
interests/NNS
in/IN
companies/NNS
that/WDT
fly/VBP
airplanes/NNS
./.
Worse/NNP
,/,
Congress/NNP
has/VBZ
started/VBN
to/TO
jump/VB
on/IN
the/DT
Skinner/NNP
bandwagon/NN
./.
James/NNP
Oberstar/NNP
,/,
the/DT
Minnesota/NNP
Democrat/NNP
who/WP
chairs/VBZ
the/DT
Public/NNP
Works/NNPS
and/CC
Transportation/NNP
Committee/NNP
's/POS
aviation/NN
subcommittee/NN
,/,
has/VBZ
put/VBN
an/DT
anti-airline/NN
takeover/NN
bill/NN
on/IN
supersonic/JJ
speed/NN
so/IN
that/IN
it/PRP
would/MD
be/VB
passed/VBN
in/IN
time/NN
to/TO
affect/VB
the/DT
American/JJ
and/CC
United/NNP
Air/NNP
Lines/NNPS
bids/NNS
./.
It/PRP
would/MD
give/VB
Mr./NNP
Skinner/NNP
up/IN
to/TO
50/CD
days/NNS
to/TO
``/``
review/VB
''/''
any/DT
bid/NN
for/IN
15/CD
%/NN
or/CC
more/JJR
of/IN
the/DT
voting/VBG
stock/NN
of/IN
any/DT
U.S./NNP
carrier/NN
with/IN
revenues/NNS
of/IN
$/$
1/CD
billion/CD
or/CC
more/JJR
./.
So/IN
the/DT
UAL/NNP
deal/NN
has/VBZ
problems/NNS
,/,
and/CC
the/DT
market/NN
loses/VBZ
190/CD
points/NNS
./.
Congratulations/UH
,/,
Mr./NNP
Secretary/NNP
and/CC
Mr./NNP
Congressman/NNP
./.
In/IN
the/DT
1987/CD
crash/NN
,/,
remember/VB
,/,
the/DT
market/NN
was/VBD
shaken/VBN
by/IN
a/DT
Danny/NNP
Rostenkowski/NNP
proposal/NN
to/TO
tax/NN
takeovers/NNS
out/IN
of/IN
existance/NN
./.
Even/RB
more/RBR
important/JJ
,/,
in/IN
our/PRP$
view/NN
,/,
was/VBD
the/DT
Treasury/NNP
's/POS
threat/NN
to/TO
thrash/VB
the/DT
dollar/NN
./.
The/DT
Treasury/NNP
is/VBZ
doing/VBG
the/DT
same/JJ
thing/NN
today/NN
;/:
thankfully/RB
,/,
the/DT
dollar/NN
is/VBZ
not/RB
under/IN
1987-style/JJ
pressure/NN
./.
Also/RB
,/,
traders/NNS
are/VBP
in/IN
better/JJR
shape/NN
today/NN
than/IN
in/IN
1987/CD
to/TO
survive/VB
selling/VBG
binges/NNS
./.
They/PRP
are/VBP
better/RB
capitalized/VBN
./.
They/PRP
are/VBP
in/IN
less/JJR
danger/NN
of/IN
losing/VBG
liquidity/NN
simply/RB
because/IN
of/IN
tape/NN
lags/NNS
and/CC
clearing/NN
and/CC
settlement/NN
delays/NNS
./.
The/DT
Fed/NNP
promises/VBZ
any/DT
needed/VBN
liquidity/NN
./.
The/DT
Big/NNP
Board/NNP
's/POS
liaison/NN
with/IN
the/DT
Chicago/NNP
Board/NNP
of/IN
Trade/NNP
has/VBZ
improved/VBN
;/:
it/PRP
will/MD
be/VB
interesting/JJ
to/TO
learn/VB
if/IN
``/``
circuit/NN
breakers/NNS
''/''
prove/VBP
to/TO
be/VB
a/DT
good/JJ
idea/NN
./.
In/IN
any/DT
event/NN
,/,
some/DT
traders/NNS
see/VBP
stocks/NNS
as/IN
underpriced/VBN
today/NN
,/,
unlike/IN
1987/CD
./.
There/EX
is/VBZ
nothing/NN
wrong/JJ
with/IN
the/DT
market/NN
that/WDT
ca/MD
n't/RB
be/VB
cured/VBN
by/IN
a/DT
little/JJ
coherence/NN
and/CC
common/JJ
sense/NN
in/IN
Washington/NNP
./.
But/CC
on/IN
the/DT
bearish/JJ
side/NN
,/,
that/WDT
may/MD
be/VB
too/RB
much/JJ
to/TO
expect/VB
./.
First/NNP
Chicago/NNP
Corp./NNP
posted/VBD
a/DT
third-quarter/NN
loss/NN
of/IN
$/$
23.3/CD
million/CD
after/IN
joining/VBG
other/JJ
big/JJ
banks/NNS
in/IN
further/RB
adding/VBG
to/TO
its/PRP$
reserves/NNS
for/IN
losses/NNS
on/IN
foreign/JJ
loans/NNS
./.
The/DT
parent/NN
company/NN
of/IN
First/NNP
National/NNP
Bank/NNP
of/IN
Chicago/NNP
,/,
with/IN
$/$
48/CD
billion/CD
in/IN
assets/NNS
,/,
said/VBD
it/PRP
set/VBD
aside/RB
$/$
200/CD
million/CD
to/TO
absorb/VB
losses/NNS
on/IN
loans/NNS
and/CC
investments/NNS
in/IN
financially/RB
troubled/VBN
countries/NNS
./.
The/DT
addition/NN
,/,
on/IN
top/NN
of/IN
two/CD
big/JJ
1987/CD
additions/NNS
to/TO
foreign-loan/JJ
reserves/NNS
,/,
brings/VBZ
the/DT
reserve/NN
to/TO
a/DT
level/NN
equaling/VBG
79/CD
%/NN
of/IN
medium-term/JJ
and/CC
long-term/JJ
loans/NNS
outstanding/JJ
to/TO
troubled/VBN
nations/NNS
./.
First/NNP
Chicago/NNP
since/IN
1987/CD
has/VBZ
reduced/VBN
its/PRP$
loans/NNS
to/TO
such/JJ
nations/NNS
to/TO
$/$
1.7/CD
billion/CD
from/IN
$/$
3/CD
billion/CD
./.
Despite/IN
this/DT
loss/NN
,/,
First/NNP
Chicago/NNP
said/VBD
it/PRP
does/VBZ
n't/RB
need/VB
to/TO
sell/VB
stock/NN
to/TO
raise/VB
capital/NN
./.
During/IN
the/DT
quarter/NN
,/,
the/DT
company/NN
realized/VBD
a/DT
pretax/NN
gain/NN
of/IN
$/$
60.4/CD
million/CD
from/IN
the/DT
sale/NN
of/IN
its/PRP$
First/NNP
Chicago/NNP
Investment/NNP
Advisors/NNPS
unit/NN
./.
Combined/VBN
foreign/JJ
exchange/NN
and/CC
bond/NN
trading/NN
profits/NNS
dipped/VBD
24/CD
%/NN
against/IN
last/JJ
year/NN
's/POS
third/JJ
quarter/NN
,/,
to/TO
$/$
38.2/CD
million/CD
from/IN
$/$
50.5/CD
million/CD
./.
Gains/NNS
from/IN
First/NNP
Chicago/NNP
's/POS
venture/NN
capital/NN
unit/NN
,/,
a/DT
big/JJ
leveraged/JJ
buy-out/NN
investor/NN
,/,
rose/VBD
32/CD
%/NN
to/TO
$/$
34/CD
million/CD
from/IN
$/$
25.7/CD
million/CD
a/DT
year/NN
ago/IN
./.
Interest/NN
income/NN
and/CC
most/JJS
fee/NN
income/NN
was/VBD
strong/JJ
./.
Greece/NNP
's/POS
second/JJ
bout/NN
of/IN
general/JJ
elections/NNS
this/DT
year/NN
is/VBZ
slated/VBN
for/IN
Nov./NNP
5/CD
./.
For/IN
those/DT
hoping/VBG
to/TO
see/VB
a/DT
modicum/NN
of/IN
political/JJ
normalcy/NN
restored/VBD
--/:
in/IN
view/NN
of/IN
Greece/NNP
's/POS
eight-year/JJ
misadventure/NN
under/IN
autocratic/JJ
pseudosocialism/NN
and/CC
subsequent/JJ
three-month/JJ
hitch/NN
with/IN
a/DT
conservative-communist/JJ
coalition/NN
government/NN
--/:
there/EX
is/VBZ
but/CC
one/CD
bright/JJ
sign/NN
:/:
The/DT
scandals/NNS
still/RB
encircling/VBG
former/JJ
Prime/NNP
Minister/NNP
Andreas/NNP
Papandreou/NNP
and/CC
his/PRP$
fallen/VBN
socialist/JJ
government/NN
are/VBP
like/JJ
flies/NNS
buzzing/VBG
around/IN
a/DT
rotting/VBG
carcass/NN
./.
In/IN
the/DT
mid-June/NNP
round/NN
of/IN
voting/NN
,/,
Greeks/NNPS
gave/VBD
no/DT
clear/JJ
mandate/NN
to/TO
any/DT
single/JJ
political/JJ
party/NN
./.
The/DT
ad/NN
interim/NN
coalition/NN
government/NN
that/WDT
emerged/VBD
from/IN
post-electoral/JJ
hagglings/NNS
was/VBD
,/,
in/IN
essence/NN
,/,
little/RB
more/JJR
than/IN
the/DT
ill-conceived/JJ
offspring/NN
of/IN
ideological/JJ
miscegenation/NN
:/:
On/IN
one/CD
side/NN
,/,
the/DT
center-right/JJ
New/NNP
Democracy/NNP
Party/NNP
,/,
headed/VBN
by/IN
Constantine/NNP
Mitsotakis/NNP
./.
On/IN
the/DT
other/JJ
,/,
the/DT
so-called/JJ
Coalition/NNP
of/IN
the/DT
Left/NNP
and/CC
Progress/NNP
--/:
a/DT
quaint/JJ
and/CC
rather/RB
deceptive/JJ
title/NN
for/IN
a/DT
merger/NN
of/IN
the/DT
pro-Soviet/JJ
Communist/NNP
Party/NNP
of/IN
Greece/NNP
and/CC
its/PRP$
Euro-Communist/NNP
cousin/NN
,/,
the/DT
Hellenic/NNP
Left/NNP
./.
The/DT
unifying/VBG
bond/NN
for/IN
this/DT
left-right/JJ
mismatch/NN
was/VBD
plain/JJ
:/:
PASOK/NNP
Mr./NNP
Papandreou/NNP
's/POS
party/NN
common/JJ
political/JJ
enemy/NN
./.
The/DT
ostensible/JJ
goal/NN
was/VBD
a/DT
mop-up/NN
of/IN
government/NN
corruption/NN
,/,
purportedly/RB
at/IN
all/DT
levels/NNS
,/,
but/CC
the/DT
main/JJ
marks/NNS
were/VBD
Mr./NNP
Papandreou/NNP
and/CC
his/PRP$
closest/JJS
associates/NNS
./.
In/IN
point/NN
of/IN
fact/NN
,/,
this/DT
catharsis/NN
was/VBD
overdue/JJ
by/IN
decades/NNS
./.
When/WRB
reduced/VBN
to/TO
buzzword/NN
status/NN
in/IN
ex/JJ
parte/NN
pledges/NNS
,/,
however/RB
,/,
the/DT
notion/NN
transmogrified/VBD
into/IN
a/DT
promised/VBN
assault/NN
,/,
with/IN
targets/NNS
primarily/RB
for/IN
political/JJ
gains/NNS
,/,
not/RB
justice/NN
./.
With/IN
regard/NN
to/TO
Greece/NNP
's/POS
long-bubbling/JJ
bank-looting/JJ
scandal/NN
,/,
Mr./NNP
Papandreou/NNP
's/POS
principal/JJ
accuser/NN
remains/VBZ
George/NNP
Koskotas/NNP
,/,
former/JJ
owner/NN
of/IN
the/DT
Bank/NNP
of/IN
Crete/NNP
and/CC
self-confessed/JJ
embezzler/NN
,/,
now/RB
residing/VBG
in/IN
a/DT
jail/NN
cell/NN
in/IN
Salem/NNP
,/,
Mass./NNP
,/,
from/IN
where/WRB
he/PRP
is/VBZ
fighting/VBG
extradition/NN
proceedings/NNS
that/WDT
would/MD
return/VB
him/PRP
to/TO
Greece/NNP
./.
Mr./NNP
Koskotas/NNP
's/POS
credibility/NN
is/VBZ
,/,
at/IN
best/JJS
,/,
problematic/JJ
./.
He/PRP
has/VBZ
ample/JJ
motive/NN
to/TO
shift/VB
the/DT
blame/NN
,/,
and/CC
his/PRP$
testimony/NN
has/VBZ
also/RB
been/VBN
found/VBN
less/RBR
than/IN
forthright/JJ
on/IN
numerous/JJ
points/NNS
./.
Nevertheless/RB
,/,
the/DT
New/NNP
Democracy/NNP
and/CC
Communist/NNP
parties/NNS
herald/VBP
his/PRP$
assertions/NNS
as/IN
proof/NN
of/IN
PASOK/NNP
complicity/NN
./.
Among/IN
unanswered/JJ
questions/NNS
are/VBP
whether/IN
Mr./NNP
Papandreou/NNP
received/VBD
$/$
23/CD
million/CD
of/IN
stolen/VBN
Bank/NNP
of/IN
Crete/NNP
funds/NNS
and/CC
an/DT
additional/JJ
$/$
734,000/CD
in/IN
bribes/NNS
,/,
as/RB
contended/VBN
;/:
whether/IN
the/DT
prime/JJ
minister/NN
ordered/VBD
state/NN
agencies/NNS
to/TO
deposit/VB
some/DT
$/$
57/CD
million/CD
in/IN
Mr./NNP
Koskotas/NNP
's/POS
bank/NN
and/CC
then/RB
skim/VB
off/IN
the/DT
interest/NN
;/:
and/CC
,/,
what/WP
PASOK/NNP
's/POS
cut/NN
was/VBD
from/IN
the/DT
$/$
210/CD
million/CD
Mr./NNP
Koskotas/NNP
pinched/VBD
./.
Two/CD
former/JJ
ministers/NNS
were/VBD
so/RB
heavily/RB
implicated/VBN
in/IN
the/DT
Koskotas/NNP
affair/NN
that/IN
PASOK/NNP
members/NNS
of/IN
Parliament/NNP
voted/VBD
to/TO
refer/VB
them/PRP
to/TO
the/DT
special/JJ
court/NN
./.
But/CC
eluding/VBG
parliamentary/JJ
probe/NN
was/VBD
the/DT
case/NN
of/IN
millions/NNS
of/IN
drachmas/NN
Mr./NNP
Koskotas/NNP
funneled/VBD
into/IN
New/NNP
Democracy/NNP
coffers/NNS
./.
In/IN
the/DT
end/NN
,/,
the/DT
investigation/NN
produced/VBD
only/RB
circumstantial/JJ
evidence/NN
and/CC
``/``
indications/NNS
''/''
that/IN
point/NN
to/TO
PASOK/NNP
,/,
not/RB
clinching/VBG
proof/NN
./.
On/IN
another/DT
issue/NN
,/,
Greeks/NNPS
were/VBD
told/VBN
how/WRB
their/PRP$
national/JJ
intelligence/NN
agency/NN
,/,
the/DT
EYP/NNP
,/,
regularly/RB
monitored/VBD
the/DT
telephone/NN
conversations/NNS
of/IN
prominent/JJ
figures/NNS
,/,
including/VBG
key/JJ
opposition/NN
politicians/NNS
,/,
journalists/NNS
and/CC
PASOK/NNP
cabinet/NN
members/NNS
./.
Despite/IN
convincing/JJ
arguments/NNS
,/,
it/PRP
was/VBD
never/RB
established/VBN
that/IN
Mr./NNP
Papandreou/NNP
personally/RB
ordered/VBD
or/CC
directed/VBD
the/DT
wiretaps/NNS
./.
The/DT
central/JJ
weakness/NN
of/IN
the/DT
``/``
scandals/NNS
''/''
debates/NNS
was/VBD
pointed/VBN
up/IN
especially/RB
well/RB
when/WRB
discussions/NNS
focused/VBD
on/IN
arms/NNS
deals/NNS
and/CC
kickbacks/NNS
./.
The/DT
coalition/NN
government/NN
tried/VBD
to/TO
show/VB
that/IN
PASOK/NNP
ministers/NNS
had/VBD
received/VBN
hefty/JJ
sums/NNS
for/IN
OKing/NNP
the/DT
purchase/NN
of/IN
F-16/NNP
Fighting/NNP
Falcon/NNP
and/CC
Mirage/NNP
2000/CD
combat/NN
aircraft/NN
,/,
produced/VBN
by/IN
the/DT
U.S.based/JJ
General/NNP
Dynamics/NNP
Corp./NNP
and/CC
France/NNP
's/POS
Avions/NNP
Marcel/NNP
Dassault/NNP
,/,
respectively/RB
./.
Naturally/RB
,/,
neither/CC
General/NNP
Dynamics/NNP
nor/CC
Dassault/NNP
could/MD
be/VB
expected/VBN
to/TO
hamper/VB
its/PRP$
prospective/JJ
future/NN
dealings/NNS
by/IN
making/VBG
disclosures/NNS
of/IN
sums/NNS
paid/VBN
(/(
or/CC
not/RB
)/)
to/TO
various/JJ
Greek/JJ
officials/NNS
for/IN
services/NNS
rendered/VBN
./.
So/IN
it/PRP
seems/VBZ
that/IN
Mr./NNP
Mitsotakis/NNP
and/CC
his/PRP$
communist/NN
chums/NNS
may/MD
have/VB
unwittingly/RB
served/VBN
Mr./NNP
Papandreou/NNP
a/DT
moral/JJ
victory/NN
on/IN
a/DT
platter/JJ
:/:
PASOK/NNP
,/,
whether/IN
guilty/JJ
or/CC
not/RB
,/,
can/MD
now/RB
traipse/VB
the/DT
countryside/NN
condemning/VBG
the/DT
whole/JJ
affair/NN
as/IN
a/DT
witch/NN
hunt/NN
at/IN
Mr./NNP
Papandreou/NNP
's/POS
expense/NN
./.
But/CC
while/IN
verbal/JJ
high/JJ
jinks/NNS
alone/RB
wo/MD
n't/RB
help/VB
PASOK/NNP
regain/VB
power/NN
,/,
Mr./NNP
Papandreou/NNP
should/MD
never/RB
be/VB
underestimated/VBN
./.
First/RB
came/VBD
his/PRP$
predictable/JJ
fusillade/NN
:/:
He/PRP
charged/VBD
the/DT
Coalition/NNP
of/IN
the/DT
Left/NNP
and/CC
Progress/NNP
had/VBD
sold/VBN
out/IN
its/PRP$
leftist/JJ
tenets/NNS
by/IN
collaborating/VBG
in/IN
a/DT
right-wing/JJ
plot/NN
aimed/VBN
at/IN
ousting/VBG
PASOK/NNP
and/CC
thwarting/VBG
the/DT
course/NN
of/IN
socialism/NN
in/IN
Greece/NNP
./.
Then/RB
,/,
to/TO
buttress/VB
his/PRP$
credibility/NN
with/IN
the/DT
left/JJ
,/,
he/PRP
enticed/VBD
some/DT
smaller/JJR
leftist/JJ
parties/NNS
to/TO
stand/VB
for/IN
election/NN
under/IN
the/DT
PASOK/NNP
banner/NN
./.
Next/JJ
,/,
he/PRP
continued/VBD
to/TO
court/VB
the/DT
communists/NNS
--/:
many/JJ
of/IN
whom/WP
feel/VBP
betrayed/VBN
by/IN
the/DT
left-right/JJ
coalition/NN
's/POS
birth/NN
--/:
by/IN
bringing/VBG
into/IN
PASOK/NNP
a/DT
well-respected/JJ
Communist/NNP
Party/NNP
candidate/NN
./.
For/IN
balance/NN
,/,
and/CC
in/IN
hopes/NNS
of/IN
gaining/VBG
some/DT
disaffected/JJ
centrist/JJ
votes/NNS
,/,
he/PRP
managed/VBD
to/TO
attract/VB
a/DT
former/JJ
New/NNP
Democracy/NNP
Party/NNP
representative/NN
and/CC
known/VBN
political/JJ
enemy/NN
of/IN
Mr./NNP
Mitsotakis/NNP
./.
Thus/RB
PASOK/NNP
heads/VBZ
for/IN
the/DT
polls/NNS
not/RB
only/RB
with/IN
diminished/VBN
scandal-stench/NN
,/,
but/CC
also/RB
with/IN
``/``
seals/NNS
of/IN
approval/NN
''/''
from/IN
representatives/NNS
of/IN
its/PRP$
harshest/JJS
accusers/NNS
./.
Crucial/JJ
as/IN
these/DT
elections/NNS
are/VBP
for/IN
Greece/NNP
,/,
pressing/VBG
issues/NNS
of/IN
state/NN
are/VBP
getting/VBG
lost/VBN
in/IN
the/DT
shuffle/NN
./.
The/DT
country/NN
's/POS
future/JJ
NATO/NNP
participation/NN
remains/VBZ
unsure/JJ
,/,
for/IN
instance/NN
./.
Greece/NNP
also/RB
must/MD
revamp/VB
major/JJ
pieces/NNS
of/IN
legislation/NN
in/IN
preparation/NN
for/IN
the/DT
1992/CD
targets/NNS
of/IN
heightened/VBN
Common/NNP
Market/NNP
cooperation/NN
./.
Greece/NNP
's/POS
bilateral/JJ
relations/NNS
with/IN
the/DT
U.S./NNP
need/VBP
attention/NN
soon/RB
as/IN
well/RB
./.
For/IN
one/CD
,/,
the/DT
current/JJ
accord/NN
concerning/VBG
U.S./NNP
military/JJ
bases/NNS
in/IN
Greece/NNP
lapses/VBZ
in/IN
May/NNP
1990/CD
./.
Negotiations/NNS
for/IN
a/DT
new/JJ
agreement/NN
were/VBD
frozen/VBN
before/IN
the/DT
June/NNP
elections/NNS
,/,
but/CC
the/DT
clock/NN
is/VBZ
running/VBG
./.
Another/DT
matter/NN
of/IN
concern/NN
is/VBZ
the/DT
extradition/NN
of/IN
Mohammed/NNP
Rashid/NNP
,/,
a/DT
Palestinian/JJ
terrorist/NN
who/WP
is/VBZ
wanted/VBN
in/IN
the/DT
U.S./NNP
for/IN
the/DT
1982/CD
bombing/NN
of/IN
a/DT
Pan/NNP
American/NNP
Airways/NNPS
flight/NN
./.
The/DT
Greek/NNP
courts/NNS
have/VBP
decided/VBN
in/IN
favor/NN
of/IN
extradition/NN
in/IN
the/DT
Rashid/NNP
case/NN
,/,
but/CC
the/DT
matter/NN
awaits/VBZ
final/JJ
approval/NN
from/IN
Greece/NNP
's/POS
next/JJ
justice/NN
minister/NN
./.
The/DT
Greeks/NNPS
seem/VBP
barely/RB
aware/JJ
of/IN
the/DT
importance/NN
of/IN
the/DT
case/NN
as/IN
a/DT
litmus/NN
test/NN
of/IN
whether/IN
Greece/NNP
will/MD
be/VB
counted/VBN
in/RB
or/CC
out/RB
for/IN
international/JJ
efforts/NNS
to/TO
combat/VB
terrorism/NN
./.
That/IN
PASOK/NNP
could/MD
win/VB
the/DT
elections/NNS
outright/RB
is/VBZ
improbable/JJ
;/:
the/DT
Greek/JJ
press/NN
,/,
previously/RB
eager/JJ
to/TO
palm/VB
off/IN
PASOK/NNP
's/POS
line/NN
,/,
has/VBZ
turned/VBN
on/IN
Mr./NNP
Papandreou/NNP
with/IN
a/DT
wild-eyed/JJ
vengeance/NN
./.
Yet/RB
the/DT
possibility/NN
of/IN
another/DT
lash-up/JJ
government/NN
is/VBZ
all/RB
too/RB
real/JJ
./.
If/IN
Mr./NNP
Papandreou/NNP
becomes/VBZ
the/DT
major/JJ
opposition/NN
leader/NN
,/,
he/PRP
could/MD
hamstring/VB
a/DT
conservative-led/JJ
coalition/NN
./.
Also/RB
,/,
he/PRP
could/MD
force/VB
new/JJ
elections/NNS
early/JJ
next/JJ
year/NN
by/IN
frustrating/VBG
the/DT
procedures/NNS
for/IN
the/DT
election/NN
of/IN
the/DT
president/NN
of/IN
the/DT
republic/NN
in/IN
March/NNP
./.
New/NNP
Democracy/NNP
has/VBZ
once/RB
again/RB
glaringly/RB
underestimated/VBN
the/DT
opponent/NN
and/CC
linked/VBN
its/PRP$
own/JJ
prospects/NNS
to/TO
negative/JJ
reaction/NN
against/IN
PASOK/NNP
,/,
forgetting/VBG
to/TO
tend/VB
to/TO
either/CC
program/NN
clarity/NN
or/CC
the/DT
rectification/NN
of/IN
internal/JJ
squabbles/NNS
./.
As/IN
for/IN
Mr./NNP
Papandreou/NNP
?/.
He/PRP
's/VBZ
not/RB
exactly/RB
sitting/VBG
pretty/RB
at/IN
this/DT
stage/NN
./.
But/CC
since/IN
he/PRP
is/VBZ
undoubtedly/RB
one/CD
of/IN
the/DT
most/RBS
proficient/JJ
bull/NN
slingers/NNS
who/WP
ever/RB
raked/VBD
muck/NN
,/,
it/PRP
seems/VBZ
far/RB
wiser/JJR
to/TO
view/VB
him/PRP
as/IN
sidelined/VBN
,/,
but/CC
certainly/RB
not/RB
yet/RB
eliminated/VBN
./.
Mr./NNP
Carpenter/NNP
,/,
a/DT
regional/JJ
correspondent/NN
for/IN
National/NNP
Review/NNP
,/,
has/VBZ
lived/VBN
in/IN
Athens/NNP
since/IN
1981/CD
./.
U.S./NNP
OFFICIALS/NNS
MOVED/VBD
to/TO
head/VB
off/IN
any/DT
repeat/NN
of/IN
Black/NNP
Monday/NNP
today/NN
following/VBG
Friday/NNP
's/POS
plunge/NN
in/IN
stock/NN
prices/NNS
./.
Fed/NNP
Chairman/NNP
Greenspan/NNP
signaled/VBD
that/IN
the/DT
central/JJ
bank/NN
was/VBD
prepared/VBN
to/TO
inject/VB
massive/JJ
amounts/NNS
of/IN
money/NN
into/IN
the/DT
banking/NN
system/NN
to/TO
prevent/VB
a/DT
financial/JJ
crisis/NN
./.
Other/JJ
U.S./NNP
and/CC
foreign/JJ
officials/NNS
also/RB
mapped/VBN
out/IN
plans/NNS
,/,
though/IN
they/PRP
kept/VBD
their/PRP$
moves/NNS
quiet/JJ
to/TO
avoid/VB
making/VBG
the/DT
financial/JJ
markets/NNS
more/RBR
jittery/JJ
./.
Friday/NNP
's/POS
sell-off/NN
was/VBD
triggered/VBN
by/IN
the/DT
collapse/NN
of/IN
UAL/NNP
's/POS
buy-out/NN
plan/NN
and/CC
a/DT
big/JJ
rise/NN
in/IN
producer/NN
prices/NNS
./.
The/DT
Dow/NNP
Jones/NNP
industrials/NNS
skidded/VBD
190.58/CD
,/,
to/TO
2569.26/CD
./.
The/DT
junk/NN
bond/NN
market/NN
came/VBD
to/TO
a/DT
standstill/NN
,/,
while/IN
Treasury/NN
bonds/NNS
soared/VBD
and/CC
the/DT
dollar/NN
fell/VBD
./.
Japanese/JJ
stocks/NNS
dropped/VBD
early/JJ
Monday/NNP
,/,
but/CC
by/IN
late/JJ
morning/NN
were/VBD
turning/VBG
around/IN
./.
The/DT
dollar/NN
was/VBD
trading/VBG
sharply/RB
lower/JJR
in/IN
Tokyo/NNP
./.
Prospects/NNS
for/IN
a/DT
new/JJ
UAL/NNP
buy-out/NN
proposal/NN
appear/VBP
bleak/JJ
./.
Many/JJ
banks/NNS
refused/VBD
to/TO
back/VB
the/DT
$/$
6.79/CD
billion/CD
transaction/NN
,/,
but/CC
bankers/NNS
said/VBD
it/PRP
was/VBD
not/RB
from/IN
any/DT
unwillingness/NN
to/TO
finance/VB
takeovers/NNS
./.
The/DT
decision/NN
was/VBD
based/VBN
solely/RB
on/IN
problems/NNS
with/IN
the/DT
UAL/NNP
management-pilot/NN
plan/NN
,/,
they/PRP
said/VBD
./.
The/DT
surge/NN
in/IN
producer/NN
prices/NNS
in/IN
September/NNP
followed/VBD
three/CD
months/NNS
of/IN
declines/NNS
,/,
but/CC
analysts/NNS
were/VBD
divided/VBN
on/IN
whether/IN
the/DT
0.9/CD
%/NN
jump/NN
signaled/VBD
a/DT
severe/JJ
worsening/NN
of/IN
inflation/NN
./.
Also/RB
,/,
retail/JJ
sales/NNS
grew/VBD
0.5/CD
%/NN
last/JJ
month/NN
./.
A/DT
capital-gains/JJ
tax/NN
cut/NN
was/VBD
removed/VBN
from/IN
the/DT
Senate/NNP
's/POS
deficit/NN
reduction/NN
bill/NN
,/,
but/CC
proponents/NNS
still/RB
hope/VB
to/TO
enact/VB
the/DT
cut/NN
this/DT
year/NN
./.
Bush/NNP
wo/MD
n't/RB
press/VB
for/IN
a/DT
capital-gains/JJ
provision/NN
in/IN
the/DT
final/JJ
deficit/NN
bill/NN
when/WRB
House-Senate/NNP
conferees/NNS
meet/VBP
later/RB
this/DT
week/NN
./.
General/NNP
Motors/NNPS
signaled/VBD
that/IN
up/IN
to/TO
five/CD
North/NNP
American/NNP
assembly/NN
plants/NNS
may/MD
close/VB
by/IN
the/DT
mid-1990s/CD
as/IN
it/PRP
tries/VBZ
to/TO
cut/VB
excess/JJ
capacity/NN
./.
U.S./NNP
car/NN
and/CC
truck/NN
sales/NNS
fell/VBD
12.6/CD
%/NN
in/IN
early/JJ
October/NNP
,/,
the/DT
first/JJ
sales/NNS
period/NN
of/IN
the/DT
1990-model/JJ
year/NN
,/,
dragged/VBD
down/IN
by/IN
a/DT
sharp/JJ
decline/NN
in/IN
GM/NNP
sales/NNS
./.
Warner/NNP
and/CC
Sony/NNP
are/VBP
entangled/VBN
in/IN
a/DT
legal/JJ
battle/NN
over/IN
movie/NN
producers/NNS
Peter/NNP
Gruber/NNP
and/CC
Jon/NNP
Peters/NNP
./.
The/DT
fight/NN
could/MD
set/VB
back/RB
Sony/NNP
's/POS
plans/NNS
to/TO
enter/VB
the/DT
U.S./NNP
movie/NN
business/NN
./.
Hooker/NNP
's/POS
U.S./NNP
unit/NN
received/VBD
a/DT
$/$
409/CD
million/CD
bid/NN
for/IN
most/JJS
of/IN
its/PRP$
real-estate/NN
and/CC
shopping-center/NN
assets/NNS
from/IN
an/DT
investor/NN
group/NN
./.
The/DT
offer/NN
does/VBZ
n't/RB
include/VB
Bonwit/NNP
Teller/NNP
or/CC
B./NNP
Altman/NNP
./.
The/DT
Boeing/NNP
strike/NN
is/VBZ
starting/VBG
to/TO
affect/VB
airlines/NNS
./.
America/NNP
West/NNP
said/VBD
Friday/NNP
it/PRP
will/MD
postpone/VB
its/PRP$
new/JJ
service/NN
out/IN
of/IN
Houston/NNP
because/IN
of/IN
delays/NNS
in/IN
receiving/VBG
aircraft/NN
from/IN
Boeing/NNP
./.
Saatchi/NNP
&/CC
Saatchi/NNP
would/MD
launch/VB
a/DT
management/NN
buy-out/NN
if/IN
a/DT
hostile/JJ
suitor/NN
emerged/VBD
,/,
an/DT
official/NN
said/VBD
./.
British/NNP
Aerospace/NNP
and/CC
France/NNP
's/POS
Thomson-CSF/NNP
are/VBP
nearing/VBG
a/DT
pact/NN
to/TO
merge/VB
guided-missile/JJ
divisions/NNS
./.
New/NNP
U.S./NNP
steel-import/JJ
quotas/NNS
will/MD
give/VB
a/DT
bigger/JJR
share/NN
to/TO
developing/VBG
nations/NNS
that/WDT
have/VBP
relatively/RB
unsubsidized/JJ
steel/NN
industries/NNS
./.
Japan/NNP
's/POS
steel/NN
quota/NN
will/MD
be/VB
cut/VBN
significantly/RB
./.
Four/CD
ailing/VBG
S&Ls/NNS
were/VBD
sold/VBN
off/IN
by/IN
government/NN
regulators/NNS
,/,
but/CC
low/JJ
bids/NNS
prevented/VBD
the/DT
sale/NN
of/IN
a/DT
fifth/JJ
./.
Markets/NNS
--/:
Stocks/NNS
:/:
Volume/NN
251,170,000/CD
shares/NNS
./.
Dow/NNP
Jones/NNP
industrials/NNS
2569.26/CD
,/,
off/IN
190.58/CD
;/:
transportation/NN
1406.29/CD
,/,
off/IN
78.06/CD
;/:
utilities/NNS
211.96/CD
,/,
off/IN
7.29/CD
./.
Bonds/NNS
:/:
Shearson/NNP
Lehman/NNP
Hutton/NNP
Treasury/NNP
index/NN
3421.29/CD
,/,
up/IN
Commodities/NNS
:/:
Dow/NNP
Jones/NNP
futures/NNS
index/NN
129.87/CD
,/,
up/IN
0.01/CD
;/:
spot/NN
index/NN
129.25/CD
,/,
up/IN
0.28/CD
./.
Dollar/NN
:/:
142.10/CD
yen/NN
,/,
off/IN
2.07/CD
;/:
1.8740/CD
marks/NNS
,/,
off/IN
0.0343/CD
./.
A/DT
federal/JJ
appeals/NNS
court/NN
in/IN
San/NNP
Francisco/NNP
ruled/VBD
that/IN
shareholders/NNS
ca/MD
n't/RB
hold/VB
corporate/JJ
officials/NNS
liable/JJ
for/IN
false/JJ
sales/NNS
projections/NNS
on/IN
new/JJ
products/NNS
if/IN
the/DT
news/NN
media/NNS
concurrently/RB
revealed/VBD
substantial/JJ
information/NN
about/IN
the/DT
product/NN
's/POS
flaws/NNS
./.
The/DT
ruling/NN
stems/VBZ
from/IN
a/DT
1984/CD
suit/NN
filed/VBN
by/IN
shareholders/NNS
of/IN
Apple/NNP
Computer/NNP
Inc./NNP
,/,
claiming/VBG
that/IN
company/NN
officials/NNS
misled/VBD
investors/NNS
about/IN
the/DT
expected/VBN
success/NN
of/IN
the/DT
Lisa/NNP
computer/NN
,/,
introduced/VBN
in/IN
1983/CD
./.
Lawyers/NNS
specializing/VBG
in/IN
shareholder/NN
suits/NNS
said/VBD
they/PRP
are/VBP
concerned/VBN
that/IN
use/NN
of/IN
the/DT
``/``
press/NN
defense/NN
''/''
by/IN
corporations/NNS
may/MD
become/VB
popular/JJ
as/IN
a/DT
result/NN
of/IN
the/DT
ruling/NN
./.
According/VBG
to/TO
the/DT
suit/NN
,/,
Apple/NNP
officials/NNS
created/VBD
public/JJ
excitement/NN
by/IN
touting/VBG
Lisa/NNP
as/IN
an/DT
office/NN
computer/NN
that/WDT
would/MD
revolutionize/VB
the/DT
workplace/NN
and/CC
be/VB
extremely/RB
successful/JJ
in/IN
its/PRP$
first/JJ
year/NN
./.
The/DT
plaintiffs/NNS
also/RB
alleged/VBN
that/IN
prior/JJ
to/TO
the/DT
fanfare/NN
,/,
the/DT
company/NN
circulated/VBD
internal/JJ
memos/NNS
indicating/VBG
problems/NNS
with/IN
Lisa/NNP
./.
The/DT
suit/NN
claimed/VBD
Apple/NNP
's/POS
stock/NN
climbed/VBD
to/TO
a/DT
high/JJ
of/IN
$/$
63.50/CD
a/DT
share/NN
on/IN
the/DT
basis/NN
of/IN
the/DT
company/NN
's/POS
optimistic/JJ
forecasts/NNS
./.
But/CC
when/WRB
the/DT
company/NN
revealed/VBD
Lisa/NNP
's/POS
poor/JJ
sales/NNS
late/RB
in/IN
1983/CD
,/,
the/DT
stock/NN
plummeted/VBD
to/TO
a/DT
low/JJ
of/IN
$/$
17.37/CD
a/DT
share/NN
,/,
according/VBG
to/TO
the/DT
suit/NN
./.
The/DT
shareholders/NNS
claimed/VBD
more/JJR
than/IN
$/$
150/CD
million/CD
in/IN
losses/NNS
./.
In/IN
1987/CD
,/,
the/DT
San/NNP
Francisco/NNP
district/NN
court/NN
dismissed/VBD
the/DT
case/NN
largely/RB
because/IN
newspaper/NN
reports/NNS
had/VBD
sufficiently/RB
counterbalanced/VBN
the/DT
company/NN
's/POS
statements/NNS
by/IN
alerting/VBG
consumers/NNS
to/TO
Lisa/NNP
's/POS
problems/NNS
./.
Late/JJ
last/JJ
month/NN
,/,
the/DT
appeals/NNS
court/NN
agreed/VBD
that/IN
most/JJS
of/IN
the/DT
case/NN
should/MD
be/VB
dismissed/VBN
./.
However/RB
,/,
it/PRP
gave/VBD
the/DT
shareholders/NNS
the/DT
right/NN
to/TO
pursue/VB
a/DT
small/JJ
portion/NN
of/IN
their/PRP$
claim/NN
that/WDT
pertains/VBZ
to/TO
Lisa/NNP
's/POS
disk/NN
drive/NN
,/,
known/VBN
as/IN
Twiggy/NNP
./.
The/DT
court/NN
ruled/VBD
that/IN
the/DT
news/NN
media/NNS
did/VBD
n't/RB
reveal/VB
Twiggy/NNP
's/POS
problems/NNS
at/IN
the/DT
time/NN
./.
Lawyers/NNS
are/VBP
worried/VBN
about/IN
the/DT
ruling/NN
's/POS
implication/NN
in/IN
other/JJ
shareholder/NN
suits/NNS
but/CC
pointed/VBD
out/IN
that/IN
the/DT
court/NN
stressed/VBD
that/IN
the/DT
ruling/NN
should/MD
be/VB
regarded/VBN
as/IN
very/RB
specific/JJ
to/TO
the/DT
Apple/NNP
case/NN
./.
``/``
The/DT
court/NN
was/VBD
careful/JJ
to/TO
say/VB
that/IN
the/DT
adverse/JJ
information/NN
appeared/VBD
in/IN
the/DT
very/RB
same/JJ
articles/NNS
and/CC
received/VBD
the/DT
same/JJ
attention/NN
as/IN
the/DT
company/NN
's/POS
statements/NNS
,/,
''/''
said/VBD
Patrick/NNP
Grannon/NNP
,/,
a/DT
Los/NNP
Angeles/NNP
lawyer/NN
at/IN
the/DT
firm/NN
of/IN
Greenfield/NNP
&/CC
Chimicles/NNP
,/,
which/WDT
was/VBD
n't/RB
involved/VBN
in/IN
the/DT
case/NN
./.
``/``
The/DT
court/NN
is/VBZ
saying/VBG
that/IN
the/DT
adverse/JJ
facts/NNS
have/VBP
to/TO
be/VB
transferred/VBN
to/TO
the/DT
market/NN
with/IN
equal/JJ
intensity/NN
and/CC
credibility/NN
as/IN
the/DT
statements/NNS
of/IN
corporate/JJ
insiders/NNS
./.
''/''
Shareholders/NNS
'/POS
attorneys/NNS
at/IN
the/DT
New/NNP
York/NNP
firm/NN
of/IN
Milberg/NNP
,/,
Weiss/NNP
,/,
Bershad/NNP
,/,
Specthrie/NNP
&/CC
Lerach/NNP
last/JJ
week/NN
petitioned/VBD
for/IN
a/DT
rehearing/NN
of/IN
the/DT
case/NN
./.
They/PRP
wrote/VBD
:/:
``/``
The/DT
opinion/NN
establishes/VBZ
a/DT
new/JJ
rule/NN
of/IN
immunity/NN
--/:
that/IN
if/IN
a/DT
wide/JJ
variety/NN
of/IN
opinions/NNS
on/IN
a/DT
company/NN
's/POS
business/NN
are/VBP
publicly/RB
reported/VBN
,/,
the/DT
company/NN
can/MD
say/VB
anything/NN
without/IN
fear/NN
of/IN
securities/NNS
liability/NN
./.
''/''
NFL/NNP
ORDERED/VBN
to/TO
pay/VB
$/$
5.5/CD
million/CD
in/IN
legal/JJ
fees/NNS
to/TO
defunct/VB
The/DT
National/NNP
Football/NNP
League/NNP
is/VBZ
considering/VBG
appealing/VBG
the/DT
ruling/NN
stemming/VBG
from/IN
the/DT
U.S./NNP
Football/NNP
League/NNP
's/POS
largely/RB
unsuccessful/JJ
antitrust/JJ
suit/NN
against/IN
the/DT
NFL/NNP
./.
A/DT
jury/NN
in/IN
1986/CD
agreed/VBD
with/IN
the/DT
USFL/NNP
's/POS
claims/NNS
that/IN
the/DT
NFL/NNP
monopolized/VBD
major/JJ
league/NN
football/NN
./.
But/CC
the/DT
jury/NN
awarded/VBD
the/DT
USFL/NNP
only/RB
$/$
1/CD
in/IN
damages/NNS
,/,
trebled/VBD
because/IN
of/IN
the/DT
antitrust/JJ
claims/NNS
./.
Last/JJ
week/NN
,/,
the/DT
U.S./NNP
Court/NNP
of/IN
Appeals/NNPS
in/IN
New/NNP
York/NNP
upheld/VBD
a/DT
$/$
5.5/CD
million/CD
award/NN
of/IN
attorneys/NNS
fees/NNS
to/TO
the/DT
defunct/JJ
league/NN
./.
Harvey/NNP
D./NNP
Myerson/NNP
,/,
of/IN
Myerson/NNP
&/CC
Kuhn/NNP
,/,
then/RB
of/IN
Finley/NNP
,/,
Kumble/NNP
,/,
Wagner/NNP
,/,
Heine/NNP
,/,
Underberg/NNP
,/,
Manley/NNP
,/,
Myerson/NNP
&/CC
Casey/NNP
,/,
was/VBD
the/DT
lead/NN
trial/NN
lawyer/NN
,/,
and/CC
his/PRP$
new/JJ
firm/NN
pursued/VBD
the/DT
application/NN
appeal/NN
./.
Douglas/NNP
R./NNP
Pappas/NNP
of/IN
Myerson/NNP
&/CC
Kuhn/NNP
says/VBZ
about/IN
$/$
5.3/CD
million/CD
of/IN
the/DT
award/NN
goes/VBZ
directly/RB
to/TO
the/DT
USFL/NNP
to/TO
reimburse/VB
it/PRP
for/IN
fees/NNS
already/RB
paid/VBN
./.
Myerson/NNP
&/CC
Kuhn/NNP
will/MD
get/VB
about/IN
$/$
260,000/CD
for/IN
the/DT
costs/NNS
of/IN
pressing/VBG
the/DT
application/NN
./.
The/DT
federal/JJ
appeals/NNS
court/NN
held/VBD
that/IN
the/DT
nominal/JJ
damages/NNS
and/CC
the/DT
failure/NN
to/TO
prove/VB
all/DT
claims/NNS
did/VBD
n't/RB
exclude/VB
the/DT
USFL/NNP
from/IN
being/VBG
reimbursed/VBN
./.
Antitrust/JJ
laws/NNS
provide/VBP
that/IN
injured/VBN
parties/NNS
may/MD
be/VB
reimbursed/VBN
for/IN
lawyers/NNS
'/POS
fees/NNS
./.
But/CC
Shepard/NNP
Goldfein/NNP
,/,
an/DT
attorney/NN
for/IN
the/DT
NFL/NNP
,/,
says/VBZ
his/PRP$
client/NN
will/MD
consider/VB
asking/VBG
for/IN
another/DT
hearing/NN
or/CC
appealing/VBG
to/TO
the/DT
U.S./NNP
Supreme/NNP
Court/NNP
./.
Mr./NNP
Goldfein/NNP
,/,
of/IN
Skadden/NNP
,/,
Arps/NNP
,/,
Slate/NNP
,/,
Meagher/NNP
&/CC
Flom/NNP
in/IN
New/NNP
York/NNP
,/,
says/VBZ
the/DT
ruling/NN
is/VBZ
wrong/JJ
and/CC
the/DT
fee/NN
award/NN
is/VBZ
excessive/JJ
because/IN
the/DT
USFL/NNP
lost/VBD
its/PRP$
major/JJ
claims/NNS
,/,
including/VBG
its/PRP$
contention/NN
that/IN
the/DT
NFL/NNP
restrained/JJ
trade/NN
through/IN
television/NN
contracts/NNS
./.
``/``
The/DT
USFL/NNP
was/VBD
not/RB
the/DT
prevailing/VBG
party/NN
,/,
''/''
Mr./NNP
Goldfein/NNP
insists/VBZ
./.
HOUSTON-CALGARY/NNP
ALLIANCE/NNP
:/:
Fulbright/NNP
&/CC
Jaworski/NNP
of/IN
Houston/NNP
and/CC
Fenerty/NNP
,/,
Robertson/NNP
,/,
Fraser/NNP
&/CC
Hatch/NNP
of/IN
Calgary/NNP
,/,
Alberta/NNP
,/,
are/VBP
affiliating/VBG
to/TO
help/VB
serve/VB
their/PRP$
energy-industry/NN
clients/NNS
./.
The/DT
affiliation/NN
is/VBZ
believed/VBN
to/TO
be/VB
the/DT
first/JJ
such/JJ
cross-border/JJ
arrangement/NN
among/IN
major/JJ
law/NN
firms/NNS
./.
The/DT
firms/NNS
are/VBP
n't/RB
required/VBN
to/TO
refer/VB
work/NN
exclusively/RB
to/TO
each/DT
other/JJ
and/CC
remain/VB
separate/JJ
organizations/NNS
./.
But/CC
they/PRP
will/MD
work/VB
together/RB
on/IN
energy/NN
environmental/JJ
fair-trade-related/JJ
issues/NNS
and/CC
conduct/VB
seminars/NNS
on/IN
topics/NNS
of/IN
mutual/JJ
interest/NN
,/,
said/VBD
Gibson/NNP
Gayle/NNP
Jr./NNP
of/IN
585-lawyer/NN
Fulbright/NNP
&/CC
Jaworski/NNP
./.
In/IN
addition/NN
,/,
Fulbright/NNP
&/CC
Jaworski/NNP
's/POS
Washington/NNP
,/,
D.C./NNP
,/,
office/NN
will/MD
play/VB
a/DT
key/JJ
role/NN
as/IN
the/DT
firms/NNS
work/VBP
together/RB
on/IN
regulatory/JJ
issues/NNS
,/,
particularly/RB
natural-gas/NN
exports/NNS
,/,
for/IN
their/PRP$
clients/NNS
./.
The/DT
arrangement/NN
,/,
reached/VBN
after/IN
about/IN
eight/CD
months/NNS
of/IN
negotiations/NNS
,/,
grew/VBD
out/IN
of/IN
80-lawyer/NN
Fenerty/NNP
Robertson/NNP
's/POS
desire/NN
to/TO
develop/VB
ties/NNS
with/IN
a/DT
U.S./NNP
firm/NN
in/IN
light/NN
of/IN
relaxed/VBN
trade/NN
barriers/NNS
between/IN
the/DT
U.S./NNP
and/CC
Canada/NNP
,/,
said/VBD
Francis/NNP
M./NNP
Saville/NNP
of/IN
Fenerty/NNP
Robertson/NNP
./.
IN/IN
WHAT/WP
MAY/MD
SIGNAL/VB
a/DT
turnaround/NN
for/IN
asbestos/NN
manufacturers/NNS
,/,
W.R./NNP
Grace/NNP
&/CC
Co./NNP
won/VBD
a/DT
3/CD
1\/2-week/JJ
trial/NN
in/IN
Pittsburgh/NNP
over/IN
whether/IN
it/PRP
should/MD
be/VB
required/VBN
to/TO
remove/VB
asbestos/NN
fireproofing/NN
from/IN
a/DT
local/JJ
high/JJ
school/NN
./.
Mount/NNP
Lebanon/NNP
High/NNP
School/NNP
,/,
near/IN
Pittsburgh/NNP
,/,
sought/VBD
$/$
21/CD
million/CD
in/IN
compensatory/JJ
damages/NNS
from/IN
Grace/NNP
,/,
arguing/VBG
that/IN
the/DT
asbestos/NN
,/,
which/WDT
can/MD
cause/VB
respiratory/JJ
diseases/NNS
and/CC
lung/NN
cancer/NN
,/,
posed/VBD
a/DT
risk/NN
to/TO
students/NNS
./.
Grace/NNP
successfully/RB
contended/VBD
that/IN
removing/VBG
the/DT
fire/NN
retardant/NN
would/MD
pose/VB
a/DT
greater/JJR
health/NN
risk/NN
than/IN
leaving/VBG
it/PRP
alone/RB
./.
A/DT
spokesman/NN
for/IN
the/DT
company/NN
said/VBD
the/DT
verdict/NN
is/VBZ
thought/VBN
to/TO
be/VB
the/DT
first/JJ
in/IN
favor/NN
of/IN
an/DT
asbestos/NN
manufacturer/NN
where/WRB
the/DT
plaintiff/NN
was/VBD
a/DT
school/NN
and/CC
the/DT
asbestos/NN
in/IN
question/NN
was/VBD
used/VBN
for/IN
fireproofing/VBG
./.
FCC/NNP
COUNSEL/NN
JOINS/VBZ
FIRM/NN
:/:
Diane/NNP
S./NNP
Killory/NNP
will/MD
join/VB
500-lawyer/NN
Morrison/NNP
&/CC
Foerster/NNP
as/IN
a/DT
partner/NN
in/IN
its/PRP$
Washington/NNP
,/,
D.C./NNP
,/,
office/NN
in/IN
mid-November/NNP
./.
She/PRP
will/MD
help/VB
develop/VB
the/DT
mass-media/NNS
practice/NN
of/IN
the/DT
San/NNP
Francisco-based/JJ
firm/NN
's/POS
communications/NNS
group/NN
./.
Ms./NNP
Killory/NNP
,/,
35/CD
years/NNS
old/JJ
,/,
resigned/VBD
as/IN
Federal/NNP
Communications/NNP
Commission/NNP
general/JJ
counsel/NN
early/RB
this/DT
month/NN
after/IN
nearly/RB
three/CD
years/NNS
in/IN
that/DT
post/NN
./.
She/PRP
was/VBD
the/DT
first/JJ
woman/NN
to/TO
be/VB
appointed/VBN
FCC/NNP
general/JJ
counsel/NN
./.
RICHARD/NNP
P./NNP
MAGURNO/NNP
,/,
formerly/RB
Eastern/NNP
Airlines/NNP
'/POS
top/NN
lawyer/NN
,/,
joined/VBD
the/DT
New/NNP
York/NNP
law/NN
firm/NN
of/IN
Lord/NNP
Day/NNP
&/CC
Lord/NNP
,/,
Barrett/NNP
Smith/NNP
as/IN
a/DT
partner/NN
./.
Mr./NNP
Magurno/NNP
,/,
45/CD
,/,
spent/VBD
17/CD
years/NNS
at/IN
the/DT
Miami/NNP
airline/NN
unit/NN
of/IN
Houston-based/JJ
Texas/NNP
Air/NNP
Corp./NNP
and/CC
was/VBD
named/VBN
general/JJ
counsel/NN
in/IN
1984/CD
./.
He/PRP
left/VBD
the/DT
company/NN
in/IN
1987/CD
./.
Mr./NNP
Magurno/NNP
said/VBD
he/PRP
will/MD
split/VB
his/PRP$
time/NN
between/IN
the/DT
200-lawyer/NN
firm/NN
's/POS
offices/NNS
in/IN
Washington/NNP
,/,
D.C./NNP
,/,
and/CC
New/NNP
York/NNP
,/,
with/IN
specialties/NNS
in/IN
aviation/NN
and/CC
labor/NN
law/NN
./.
Apple/NNP
Computer/NNP
Inc./NNP
said/VBD
it/PRP
will/MD
offer/VB
cash/NN
rebates/NNS
on/IN
several/JJ
of/IN
its/PRP$
machines/NNS
from/IN
Oct./NNP
14/CD
to/TO
Dec./NNP
31./CD
,/,
as/IN
part/NN
of/IN
a/DT
holiday-season/JJ
sales/NNS
promotion/NN
./.
Apple/NNP
will/MD
offer/VB
a/DT
$/$
150/CD
rebate/NN
on/IN
its/PRP$
Apple/NNP
IIGS/NNP
with/IN
any/DT
Apple/NNP
Monitor/NNP
and/CC
disk/NN
drive/NN
;/:
$/$
200/CD
on/IN
the/DT
basic/JJ
Macintosh/NNP
Plus/NNP
central/JJ
processing/NN
unit/NN
;/:
$/$
250/CD
on/IN
the/DT
Macintosh/NNP
SE/NNP
central/JJ
processing/NN
unit/NN
;/:
$/$
250/CD
on/IN
the/DT
Macintosh/NNP
SE\/30/NNP
cpu/NN
,/,
and/CC
$/$
300/CD
on/IN
a/DT
Macintosh/NNP
IIcx/NNP
with/IN
any/DT
Apple/NNP
video/NN
card/NN
and/CC
Apple/NNP
monitor/NN
./.
The/DT
rebates/NNS
,/,
as/IN
a/DT
percentage/NN
of/IN
the/DT
retail/JJ
cost/NN
of/IN
the/DT
cpu/NN
of/IN
each/DT
system/NN
,/,
amount/NN
to/TO
6/CD
%/NN
to/TO
13/CD
%/NN
./.
The/DT
company/NN
is/VBZ
also/RB
offering/VBG
a/DT
free/JJ
trial/NN
of/IN
its/PRP$
computers/NNS
to/TO
consumers/NNS
who/WP
qualify/VBP
for/IN
its/PRP$
credit/NN
cards/NNS
or/CC
leases/NNS
./.
Matsushita/NNP
Electric/NNP
Industrial/NNP
Co./NNP
of/IN
Japan/NNP
and/CC
Siemens/NNP
AG/NNP
of/IN
West/NNP
Germany/NNP
announced/VBD
they/PRP
have/VBP
completed/VBN
a/DT
100/CD
million-mark/JJ
$/$
52.2/CD
million/CD
joint/JJ
venture/NN
to/TO
produce/VB
electronics/NNS
parts/NNS
./.
In/IN
the/DT
venture/NN
's/POS
first/JJ
fiscal/JJ
year/NN
,/,
Siemens/NNP
will/MD
hold/VB
74.9/CD
%/NN
of/IN
the/DT
venture/NN
and/CC
a/DT
Matsushita/NNP
subsidiary/NN
,/,
Matsushita/NNP
Electronic/NNP
Components/NNPS
Co./NNP
,/,
25.1/CD
%/NN
./.
A/DT
basic/JJ
agreement/NN
between/IN
the/DT
two/CD
companies/NNS
was/VBD
announced/VBN
in/IN
June/NNP
./.
The/DT
new/JJ
company/NN
is/VBZ
to/TO
be/VB
called/VBN
Siemens/NNP
Matsushita/NNP
Components/NNPS
G.m.b/NNP
./.
H/NN
./.
It/PRP
will/MD
have/VB
its/PRP$
headquarters/NNS
in/IN
Munich/NNP
./.
Matsushita/NNP
's/POS
share/NN
in/IN
the/DT
venture/NN
will/MD
rise/VB
to/TO
35/CD
%/NN
Oct./NNP
1/CD
,/,
1990/CD
,/,
and/CC
to/TO
50/CD
%/NN
the/DT
following/VBG
Oct./NNP
1/CD
./.
Siemens/NNP
will/MD
retain/VB
majority/NN
voting/VBG
rights/NNS
./.
The/DT
parent/NN
companies/NNS
forecast/VBP
sales/NNS
for/IN
the/DT
venture/NN
of/IN
around/IN
750/CD
million/CD
marks/NNS
for/IN
its/PRP$
first/JJ
fiscal/JJ
year/NN
,/,
Matsushita/NNP
said/VBD
./.
Sales/NNS
are/VBP
expected/VBN
to/TO
rise/VB
to/TO
one/CD
billion/CD
marks/NNS
after/IN
four/CD
years/NNS
./.
The/DT
company/NN
will/MD
have/VB
production/NN
facilities/NNS
in/IN
West/NNP
Germany/NNP
,/,
Austria/NNP
,/,
France/NNP
and/CC
Spain/NNP
./.
Roger/NNP
Rosenblatt/NNP
,/,
editor/NN
of/IN
U.S./NNP
News/NNP
&/CC
World/NNP
Report/NNP
,/,
resigned/VBD
Friday/NNP
from/IN
the/DT
weekly/JJ
news/NN
magazine/NN
./.
Mr./NNP
Rosenblatt/NNP
said/VBD
he/PRP
resigned/VBD
because/IN
of/IN
difficulties/NNS
with/IN
commuting/VBG
between/IN
his/PRP$
home/NN
in/IN
New/NNP
York/NNP
and/CC
the/DT
magazine/NN
's/POS
editorial/NN
offices/NNS
in/IN
Washington/NNP
./.
``/``
Frankly/NNP
,/,
I/PRP
missed/VBD
my/PRP$
family/NN
,/,
''/''
said/VBD
Mr./NNP
Rosenblatt/NNP
./.
In/IN
Mr./NNP
Rosenblatt/NNP
's/POS
tenure/NN
,/,
the/DT
magazine/NN
's/POS
advertising/NN
pages/NNS
and/CC
circulation/NN
have/VBP
grown/VBN
significantly/RB
./.
But/CC
at/IN
2.3/CD
million/CD
weekly/RB
paid/VBN
circulation/NN
,/,
U.S./NNP
News/NNP
still/RB
ranks/VBZ
third/JJ
behind/IN
Time/NNP
Warner/NNP
Inc./NNP
's/POS
Time/NNP
magazine/NN
,/,
with/IN
4.4/CD
million/CD
circulation/NN
,/,
and/CC
Washington/NNP
Post/NNP
Co./NNP
's/POS
Newsweek/NNP
,/,
with/IN
3.3/CD
million/CD
circulation/NN
./.
Mortimer/NNP
B./NNP
Zuckerman/NNP
,/,
chairman/NN
and/CC
editor/NN
in/IN
chief/NN
,/,
said/VBD
Mr./NNP
Rosenblatt/NNP
would/MD
be/VB
succeeded/VBN
starting/VBG
today/NN
by/IN
Michael/NNP
Ruby/NNP
,/,
the/DT
magazine/NN
's/POS
executive/NN
editor/NN
,/,
and/CC
Merrill/NNP
McLoughlin/NNP
,/,
a/DT
senior/JJ
writer/NN
./.
Mr./NNP
Ruby/NNP
and/CC
Ms./NNP
McLoughlin/NNP
are/VBP
married/VBN
to/TO
each/DT
other/JJ
./.
Mr./NNP
Zuckerman/NNP
said/VBD
his/PRP$
magazine/NN
would/MD
maintain/VB
its/PRP$
editorial/NN
format/NN
,/,
which/WDT
is/VBZ
a/DT
mix/NN
of/IN
analysis/NN
and/CC
trend/NN
stories/NNS
with/IN
service-oriented/JJ
,/,
how-to/JJ
articles/NNS
./.
Mr./NNP
Rosenblatt/NNP
,/,
a/DT
senior/JJ
writer/NN
at/IN
Time/NNP
magazine/NN
before/IN
joining/VBG
U.S./NNP
News/NNP
&/CC
World/NNP
Report/NNP
,/,
said/VBD
he/PRP
had/VBD
numerous/JJ
job/NN
offers/NNS
from/IN
other/JJ
magazines/NNS
while/IN
he/PRP
was/VBD
editor/NN
./.
The/DT
offers/NNS
were/VBD
to/TO
work/VB
as/IN
a/DT
writer/NN
,/,
not/RB
an/DT
editor/NN
./.
He/PRP
said/VBD
he/PRP
will/MD
now/RB
consider/VB
those/DT
offers/NNS
./.
Avions/NNP
Marcel/NNP
Dassault-Breguet/NNP
Aviation/NNP
S.A./NNP
said/VBD
group/NN
profit/NN
before/IN
taxes/NNS
and/CC
contributions/NNS
to/TO
employee/NN
profit-sharing/NNS
soared/VBD
97/CD
%/NN
to/TO
839/CD
million/CD
francs/NNS
$/$
129.6/CD
million/CD
the/DT
first/JJ
half/DT
of/IN
1989/CD
from/IN
425/CD
million/CD
francs/NNS
a/DT
year/NN
earlier/RBR
./.
The/DT
French/NNP
aircraft/NN
group/NN
pointed/VBD
out/IN
,/,
however/RB
,/,
that/IN
financial/JJ
results/NNS
from/IN
its/PRP$
sector/NN
of/IN
industry/NN
are/VBP
frequently/RB
erratic/JJ
because/IN
of/IN
irregular/JJ
cash/NN
flow/NN
from/IN
large/JJ
contracts/NNS
./.
It/PRP
noted/VBD
,/,
for/IN
example/NN
,/,
that/IN
group/NN
revenue/NN
for/IN
the/DT
first/JJ
half/DT
was/VBD
8.734/CD
billion/CD
francs/NNS
,/,
down/IN
about/IN
12/CD
%/NN
from/IN
9.934/CD
billion/CD
francs/NNS
a/DT
year/NN
earlier/RBR
./.
Still/RB
,/,
it/PRP
said/VBD
it/PRP
expects/VBZ
sales/NNS
for/IN
all/DT
of/IN
1989/CD
to/TO
be/VB
on/IN
the/DT
order/NN
of/IN
20/CD
billion/CD
francs/NNS
,/,
reflecting/VBG
anticipated/VBN
billings/NNS
for/IN
two/CD
large/JJ
contracts/NNS
in/IN
the/DT
second/JJ
half/DT
of/IN
the/DT
year/NN
./.
For/IN
all/DT
of/IN
1988/CD
,/,
Dassault/NNP
had/VBD
group/NN
profit/NN
of/IN
428/CD
million/CD
francs/NNS
on/IN
revenue/NN
of/IN
18.819/CD
billion/CD
francs/NNS
./.
The/DT
group/NN
has/VBZ
n't/RB
yet/RB
released/VBN
earnings/NNS
figures/NNS
for/IN
the/DT
first/JJ
half/DT
of/IN
1989/CD
,/,
nor/CC
has/VBZ
it/PRP
made/VBN
a/DT

detailed/VBN
forecast/NN
of/IN
its/PRP$
full-year/JJ
earnings/NNS
./.
Keystone/NNP
Consolidated/NNP
Industries/NNPS
Inc./NNP
expects/VBZ
to/TO
report/VB
earnings/NNS
before/IN
extraordinary/JJ
tax/NN
benefits/NNS
of/IN
about/IN
$/$
1.5/CD
million/CD
,/,
or/CC
about/IN
41/CD
cents/NNS
a/DT
share/NN
,/,
for/IN
the/DT
third/JJ
quarter/NN
,/,
compared/VBN
with/IN
a/DT
loss/NN
last/JJ
year/NN
,/,
said/VBD
Glenn/NNP
R./NNP
Simmons/NNP
,/,
chairman/NN
and/CC
chief/NN
executive/NN
officer/NN
./.
After/IN
a/DT
tax/NN
benefit/NN
of/IN
about/IN
$/$
780,000/CD
,/,
Keystone/NNP
expects/VBZ
to/TO
report/VB
net/JJ
income/NN
of/IN
$/$
2.3/CD
million/CD
,/,
or/CC
about/IN
62/CD
cents/NNS
a/DT
share/NN
,/,
Mr./NNP
Simmons/NNP
said/VBD
./.
For/IN
third/JJ
quarter/NN
last/JJ
year/NN
,/,
Keystone/NNP
reported/VBD
a/DT
$/$
1/CD
million/CD
loss/NN
from/IN
continuing/VBG
operations/NNS
and/CC
a/DT
$/$
200,000/CD
loss/NN
from/IN
discontinued/VBN
operations/NNS
,/,
for/IN
a/DT
net/JJ
loss/NN
of/IN
$/$
1.2/CD
million/CD
./.
Revenue/NN
for/IN
the/DT
latest/JJS
third/JJ
quarter/NN
was/VBD
about/IN
$/$
70.5/CD
million/CD
,/,
up/IN
10/CD
%/NN
from/IN
$/$
63.6/CD
million/CD
last/JJ
year/NN
,/,
he/PRP
said/VBD
./.
Mr./NNP
Simmons/NNP
said/VBD
the/DT
results/NNS
signal/VBP
a/DT
turnaround/NN
for/IN
the/DT
maker/NN
of/IN
wire/NN
and/CC
wire/NN
products/NNS
,/,
which/WDT
has/VBZ
struggled/VBN
to/TO
remain/VB
competitive/JJ
in/IN
the/DT
face/NN
of/IN
lower-priced/JJ
,/,
imported/VBN
steel/NN
./.
A/DT
new/JJ
$/$
46/CD
million/CD
steel/NN
rod/NN
minimill/NN
,/,
which/WDT
got/VBD
off/IN
to/TO
a/DT
rocky/JJ
start/NN
in/IN
early/JJ
1988/CD
,/,
now/RB
is/VBZ
running/VBG
efficiently/RB
and/CC
a/DT
new/JJ
management/NN
team/NN
is/VBZ
more/RBR
heavily/RB
marketing/VBG
Keystone/NN
's/POS
products/NNS
,/,
Mr./NNP
Simmons/NNP
said/VBD
./.
As/IN
a/DT
result/NN
,/,
the/DT
company/NN
hopes/VBZ
to/TO
report/VB
net/JJ
income/NN
for/IN
the/DT
year/NN
of/IN
about/IN
$/$
11.6/CD
million/CD
,/,
or/CC
about/IN
$/$
3.10/CD
to/TO
$/$
3.15/CD
a/DT
share/NN
,/,
compared/VBN
with/IN
a/DT
net/JJ
loss/NN
of/IN
$/$
24.4/CD
million/CD
last/JJ
year/NN
,/,
after/IN
a/DT
loss/NN
from/IN
discontinued/VBN
operations/NNS
of/IN
$/$
18.4/CD
million/CD
./.
Revenue/NN
for/IN
1989/CD
is/VBZ
expected/VBN
to/TO
be/VB
about/IN
$/$
300/CD
million/CD
,/,
up/IN
about/IN
21/CD
%/NN
from/IN
$/$
247.3/CD
million/CD
in/IN
1988/CD
./.
For/IN
the/DT
nine/CD
months/NNS
ended/VBD
Sept./NNP
30/CD
,/,
Keystone/NNP
expects/VBZ
to/TO
report/VB
net/JJ
income/NN
of/IN
$/$
9.3/CD
milion/NN
,/,
or/CC
about/IN
$/$
2.53/CD
a/DT
share/NN
,/,
after/IN
an/DT
extraordinary/JJ
gain/NN
from/IN
$/$
3.2/CD
million/CD
in/IN
tax/NN
benefits/NNS
./.
Last/JJ
year/NN
,/,
the/DT
company/NN
had/VBD
a/DT
net/JJ
loss/NN
of/IN
$/$
6.5/CD
million/CD
,/,
including/VBG
a/DT
$/$
6.1/CD
million/CD
loss/NN
from/IN
continuing/VBG
operations/NNS
and/CC
a/DT
$/$
400,000/CD
loss/NN
from/IN
discontinued/VBN
operations/NNS
./.
Revenue/NN
for/IN
the/DT
nine/CD
months/NNS
is/VBZ
expected/VBN
to/TO
be/VB
about/IN
$/$
230.5/CD
million/CD
,/,
up/IN
about/IN
21/CD
%/NN
from/IN
$/$
190.4/CD
million/CD
last/JJ
year/NN
./.
Mr./NNP
Simmons/NNP
said/VBD
Keystone/NNP
's/POS
new/JJ
mill/NN
is/VBZ
expected/VBN
to/TO
produce/VB
about/IN
585,000/CD
tons/NNS
of/IN
steel/NN
rods/NNS
this/DT
year/NN
,/,
up/IN
from/IN
413,000/CD
tons/NNS
in/IN
1988/CD
./.
Production/NN
at/IN
the/DT
mill/NN
has/VBZ
exceeded/VBN
the/DT
ability/NN
of/IN
Keystone/NNP
's/POS
casting/NN
operation/NN
to/TO
supply/VB
it/PRP
,/,
he/PRP
said/VBD
,/,
which/WDT
will/MD
force/VB
Keystone/NNP
to/TO
purchase/VB
billet/NN
,/,
or/CC
unfinished/JJ
steel/NN
bars/NNS
,/,
from/IN
outside/IN
the/DT
company/NN
during/IN
the/DT
fourth/JJ
quarter/NN
and/CC
next/JJ
year/NN
./.
Keystone/NNP
will/MD
have/VB
to/TO
consider/VB
expanding/VBG
its/PRP$
casting/NN
operation/NN
,/,
at/IN
an/DT
estimated/VBN
cost/NN
of/IN
$/$
8/CD
million/CD
to/TO
$/$
10/CD
million/CD
,/,
within/IN
the/DT
next/JJ
18/CD
to/TO
24/CD
months/NNS
,/,
Mr./NNP
Simmons/NNP
said/VBD
./.
Under/IN
Robert/NNP
W./NNP
Singer/NNP
,/,
who/WP
was/VBD
named/VBN
president/NN
and/CC
chief/NN
operating/VBG
officer/NN
last/JJ
year/NN
,/,
Keystone/NNP
has/VBZ
expanded/VBN
its/PRP$
sales/NNS
force/NN
to/TO
about/IN
20/CD
people/NNS
from/IN
about/IN
15/CD
and/CC
hopes/VBZ
to/TO
expand/VB
its/PRP$
sales/NNS
from/IN
the/DT
middle/JJ
portion/NN
of/IN
the/DT
country/NN
toward/IN
the/DT
East/NNP
and/CC
West/NNP
coasts/NNS
./.
``/``
Prior/RB
to/TO
a/DT
year/NN
ago/IN
,/,
Keystone/NNP
was/VBD
an/DT
order-taker/NN
./.
Now/RB
I/PRP
think/VBP
we/PRP
have/VBP
a/DT
group/NN
of/IN
marketing/VBG
people/NNS
who/WP
are/VBP
out/IN
selling/VBG
to/TO
retailers/NNS
and/CC
wholesalers/NNS
,/,
''/''
Mr./NNP
Simmons/NNP
said/VBD
./.
Still/RB
,/,
he/PRP
said/VBD
,/,
the/DT
100-year-old/JJ
company/NN
plans/VBZ
to/TO
continue/VB
its/PRP$
premium-priced/JJ
strategy/NN
for/IN
its/PRP$
distinctive/JJ
brand/NN
of/IN
red-tipped/JJ
wire/NN
fencing/NN
and/CC
other/JJ
products/NNS
./.
The/DT
company/NN
claims/VBZ
a/DT
40/CD
%/NN
share/NN
of/IN
the/DT
U.S./NNP
field/NN
fence/NN
business/NN
,/,
a/DT
35/CD
%/NN
share/NN
of/IN
poultry/NN
netting/VBG
sales/NNS
and/CC
a/DT
30/CD
%/NN
share/NN
of/IN
barbed/VBN
wire/NN
sales/NNS
./.
Freeport-McMoRan/NNP
Inc./NNP
said/VBD
a/DT
temporary/JJ
cessation/NN
of/IN
operations/NNS
at/IN
its/PRP$
Sunshine/NNP
Bridge/NNP
uranium-recovery/JJ
facility/NN
in/IN
Donaldsonville/NNP
,/,
La./NNP
,/,
will/MD
result/VB
in/IN
slight/JJ
earnings/NNS
improvement/NN
to/TO
both/PDT
the/DT
company/NN
and/CC
its/PRP$
Freeport-McMoRan/NNP
Resource/NNP
Partners/NNPS
Limited/NNP
Partnership/NNP
unit/NN
./.
The/DT
company/NN
did/VBD
n't/RB
elaborate/JJ
./.
The/DT
diversified/JJ
energy/NN
and/CC
minerals/NNS
concern/NN
said/VBD
that/IN
a/DT
depressed/VBN
uranium/NN
market/NN
is/VBZ
responsible/JJ
for/IN
the/DT
temporary/JJ
mothballing/NN
of/IN
the/DT
plant/NN
,/,
but/CC
that/IN
the/DT
plant/NN
can/MD
be/VB
reactivated/VBN
quickly/RB
when/WRB
the/DT
market/NN
improves/VBZ
./.
More/JJR
than/IN
400,000/CD
pounds/NNS
of/IN
uranium/NN
a/DT
year/NN
have/VBP
been/VBN
produced/VBN
at/IN
the/DT
facility/NN
during/IN
the/DT
past/JJ
seven/CD
years/NNS
./.
A/DT
second/JJ
uranium-recovery/JJ
plant/NN
at/IN
Uncle/NNP
Sam/NNP
,/,
La./NNP
,/,
that/WDT
produces/VBZ
more/JJR
than/IN
700,000/CD
pounds/NNS
of/IN
uranium/NN
annually/RB
,/,
will/MD
continue/VB
to/TO
operate/VB
./.
Freeport-McMoRan/NNP
said/VBD
the/DT
shutdown/NN
wo/MD
n't/RB
affect/VB
sales/JJ
volumes/NNS
under/IN
long-term/JJ
sales/NNS
contracts/NNS
of/IN
its/PRP$
Freeport/NNP
Uranium/NNP
Recovery/NNP
Co./NNP
unit/NN
,/,
but/CC
will/MD
reduce/VB
the/DT
amount/NN
of/IN
product/NN
sold/VBN
on/IN
the/DT
spot/NN
market/NN
./.
Freeport-McMoRan/NNP
Resource/NNP
Partners/NNPS
,/,
as/IN
owner/NN
of/IN
the/DT
uranium-recovery/JJ
technology/NN
,/,
receives/VBZ
royalty/NN
payments/NNS
./.
Business/NNP
Week/NNP
subscribers/NNS
may/MD
hear/VB
this/DT
week/NN
's/POS
issue/NN
talking/VBG
back/RB
to/TO
them/PRP
./.
A/DT
four-page/JJ
ad/NN
from/IN
Texas/NNP
Instruments/NNPS
Inc./NNP
,/,
running/VBG
in/IN
approximately/RB
140,000/CD
issues/NNS
of/IN
the/DT
Oct./NNP
20/CD
``/``
Corporate/NNP
Elite/NNP
''/''
issue/NN
of/IN
the/DT
McGraw-Hill/NNP
Inc./NNP
publication/NN
,/,
contains/VBZ
a/DT
speech/NN
synthesizer/NN
laminated/VBN
between/IN
two/CD
of/IN
the/DT
pages/NNS
./.
Readers/NNS
who/WP
pull/VBP
off/IN
a/DT
piece/NN
of/IN
tape/NN
and/CC
press/VB
a/DT
switch/NN
will/MD
hear/VB
a/DT
tiny/JJ
--/:
but/CC
distinctly/RB
human-sounding/JJ
--/:
voice/NN
announce/VB
,/,
``/``
I/PRP
am/VBP
the/DT
talking/VBG
chip/NN
,/,
''/''
as/IN
it/PRP
launches/VBZ
into/IN
a/DT
15-second/JJ
discourse/NN
on/IN
its/PRP$
own/JJ
attributes/NNS
./.
The/DT
talking/VBG
chip/NN
is/VBZ
n't/RB
cheap/JJ
--/:
the/DT
per-ad/JJ
cost/NN
to/TO
Texas/NNP
Instruments/NNPS
is/VBZ
about/IN
$/$
4/CD
,/,
and/CC
that/DT
's/VBZ
without/IN
adding/VBG
in/IN
Business/NNP
Week/NNP
's/POS
charge/NN
--/:
but/CC
Texas/NNP
Instruments/NNPS
believes/VBZ
it/PRP
is/VBZ
a/DT
first/JJ
./.
Previous/JJ
efforts/NNS
have/VBP
included/VBN
musical/JJ
ads/NNS
,/,
featuring/VBG
simple/JJ
tone-generating/JJ
chips/NNS
that/WDT
play/VBP
a/DT
tune/NN
,/,
but/CC
the/DT
voice/NN
synthesizer/NN
in/IN
this/DT
effort/NN
is/VBZ
much/RB
more/RBR
sophisticated/JJ
,/,
with/IN
none/NN
of/IN
the/DT
robotic/JJ
flatness/NN
that/IN
one/NN
hears/VBZ
,/,
for/IN
example/NN
,/,
when/WRB
calling/VBG
telephone/NN
directory/NN
services/NNS
./.
And/CC
for/IN
those/DT
who/WP
miss/VBP
the/DT
message/NN
the/DT
first/JJ
time/NN
around/IN
,/,
not/RB
to/TO
worry/VB
:/:
Three/CD
tiny/JJ
batteries/NNS
provide/VBP
enough/JJ
juice/NN
for/IN
as/RB
many/JJ
as/IN
650/CD
replays/NNS
./.
Lomas/NNP
Financial/NNP
Corp./NNP
,/,
Dallas/NNP
,/,
said/VBD
it/PRP
will/MD
ask/VB
a/DT
U.S./NNP
bankruptcy/NN
court/NN
to/TO
allow/VB
it/PRP
to/TO
hire/VB
Lazard/NNP
Freres/NNP
&/CC
Co./NNP
to/TO
help/VB
it/PRP
sell/VB
its/PRP$
leasing/NN
unit/NN
./.
Lomas/NNP
,/,
assisted/VBN
by/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNPS
,/,
has/VBZ
been/VBN
trying/VBG
to/TO
sell/VB
its/PRP$
Equitable/NNP
Lomas/NNP
Leasing/NNP
Co./NNP
for/IN
several/JJ
months/NNS
,/,
apparently/RB
without/IN
success/NN
./.
The/DT
real/JJ
estate/NN
and/CC
mortgage/NN
banking/NN
concern/NN
had/VBD
hoped/VBN
to/TO
use/VB
proceeds/NNS
from/IN
the/DT
sale/NN
to/TO
reduce/VB
its/PRP$
debt/NN
./.
Without/IN
cash/NN
from/IN
asset/NN
sales/NNS
and/CC
unable/JJ
to/TO
reach/VB
a/DT
new/JJ
bank-credit/NN
agreement/NN
,/,
Lomas/NNP
defaulted/VBD
on/IN
$/$
145/CD
million/CD
in/IN
notes/NNS
that/WDT
became/VBD
due/JJ
Sept./NNP
1/CD
./.
It/PRP
filed/VBD
for/IN
protection/NN
from/IN
creditors/NNS
under/IN
Chapter/NN
11/CD
of/IN
the/DT
federal/JJ
Bankruptcy/NNP
Code/NNP
Sept./NNP
24/CD
to/TO
give/VB
it/PRP
additional/JJ
time/NN
to/TO
work/VB
on/IN
a/DT
plan/NN
to/TO
restructure/VB
its/PRP$
$/$
1.45/CD
billion/CD
in/IN
senior/JJ
debt/NN
./.
Lomas/NNP
said/VBD
Merrill/NNP
Lynch/NNP
,/,
which/WDT
owns/VBZ
bonds/NNS
and/CC
equity/NN
in/IN
Lomas/NNP
,/,
could/MD
n't/RB
continue/VB
as/IN
Lomas/NNP
's/POS
investment/NN
banker/NN
because/IN
it/PRP
is/VBZ
also/RB
a/DT
creditor/NN
./.
It/PRP
said/VBD
it/PRP
chose/VBD
Lazard/NNP
in/IN
part/NN
because/IN
of/IN
Lazard/NNP
's/POS
offices/NNS
in/IN
Europe/NNP
and/CC
Japan/NNP
,/,
where/WRB
investors/NNS
might/MD
be/VB
interested/JJ
in/IN
a/DT
U.S./NNP
leasing/NN
company/NN
./.
Canadian/NNP
Imperial/NNP
Bank/NNP
of/IN
Commerce/NNP
said/VBD
it/PRP
will/MD
increase/VB
its/PRP$
loan-loss/NN
provisions/NNS
to/TO
cover/VB
all/PDT
its/PRP$
loans/NNS
to/TO
lesser/JJR
developed/VBN
countries/NNS
,/,
except/IN
Mexico/NNP
,/,
resulting/VBG
in/IN
an/DT
after-tax/JJ
charge/NN
to/TO
1989/CD
earnings/NNS
of/IN
300/CD
million/CD
Canadian/JJ
dollars/NNS
US$/$
255/CD
million/CD
Don/NNP
Bowder/NNP
,/,
senior/JJ
vice/NN
president/NN
and/CC
chief/NN
accountant/NN
,/,
said/VBD
the/DT
bank/NN
's/POS
strong/JJ
earnings/NNS
enable/VBP
it/PRP
to/TO
be/VB
the/DT
first/JJ
major/JJ
Canadian/JJ
bank/NN
to/TO
set/VB
aside/RB
provisions/NNS
covering/VBG
all/PDT
its/PRP$
C$/$
1.17/CD
billion/CD
in/IN
non-Mexican/JJ
LDC/NNP
debt/NN
./.
``/``
It/PRP
eliminates/VBZ
the/DT
continuing/VBG
uncertainty/NN
with/IN
respect/NN
to/TO
the/DT
ultimate/JJ
value/NN
of/IN
the/DT
loans/NNS
,/,
''/''
he/PRP
said/VBD
./.
The/DT
bank/NN
said/VBD
about/IN
C$/$
525/CD
million/CD
will/MD
be/VB
added/VBN
to/TO
its/PRP$
existing/VBG
LDC/NNP
and/CC
general/JJ
loss/NN
provisions/NNS
in/IN
its/PRP$
fourth/JJ
quarter/NN
,/,
ending/VBG
Oct./NNP
31/CD
./.
Mr./NNP
Bowder/NNP
said/VBD
the/DT
C$/$
300/CD
million/CD
charge/NN
to/TO
earnings/NNS
would/MD
amount/VB
to/TO
about/IN
C$/$
1.34/CD
a/DT
share/NN
./.
The/DT
bank/NN
's/POS
net/JJ
income/NN
for/IN
the/DT
nine/CD
months/NNS
ended/VBD
July/NNP
31/CD
was/VBD
C$/$
577/CD
million/CD
,/,
or/CC
C$/$
3.10/CD
a/DT
share/NN
./.
Mr./NNP
Bowder/NNP
said/VBD
the/DT
bank/NN
will/MD
restructure/VB
its/PRP$
C$/$
604/CD
million/CD
of/IN
Mexican/JJ
debt/NN
,/,
of/IN
which/WDT
C$/$
255/CD
million/CD
is/VBZ
in/IN
Mexican/JJ
notes/NNS
secured/VBN
by/IN
U.S./NNP
government/NN
bonds/NNS
./.
The/DT
bank/NN
has/VBZ
a/DT
45/CD
%/NN
reserve/NN
against/IN
the/DT
remaining/VBG
C$/$
349/CD
million/CD
of/IN
Mexican/JJ
debt/NN
and/CC
expects/VBZ
to/TO
swap/VB
that/IN
for/IN
other/JJ
Mexican/JJ
notes/NNS
supported/VBN
by/IN
U.S./NNP
Treasury/NNP
zero-coupon/NN
bonds/NNS
./.
Mr./NNP
Bowder/NNP
said/VBD
the/DT
bank/NN
's/POS
experience/NN
with/IN
LDC/NNP
debt/NN
has/VBZ
been/VBN
``/``
painful/JJ
''/''
and/CC
this/DT
latest/JJS
move/NN
represents/VBZ
the/DT
final/JJ
phase/NN
of/IN
a/DT
program/NN
begun/VBN
seven/CD
years/NNS
ago/IN
to/TO
reduce/VB
its/PRP$
exposure/NN
through/IN
provisioning/VBG
,/,
debt/NN
sales/NNS
and/CC
debt/NN
swaps/NNS
./.
He/PRP
said/VBD
the/DT
bank/NN
will/MD
no/RB
longer/RB
participate/VB
in/IN
LDC/NNP
sovereign/JJ
lending/NN
,/,
but/CC
will/MD
support/VB
trade/NN
financing/NN
and/CC
other/JJ
transactions/NNS
that/WDT
meet/VBP
the/DT
bank/NN
's/POS
standards/NNS
./.
The/DT
carnage/NN
among/IN
takeover/NN
stocks/NNS
Friday/NNP
does/VBZ
n't/RB
mean/VB
the/DT
end/NN
of/IN
mega-mergers/NNS
but/CC
simply/RB
marks/VBZ
the/DT
start/NN
of/IN
a/DT
less/RBR
ambitious/JJ
game/NN
,/,
Wall/NNP
Street/NNP
's/POS
big-time/JJ
deal/NN
makers/NNS
say/VBP
./.
Suitors/NNS
from/IN
now/RB
on/IN
are/VBP
more/RBR
likely/JJ
to/TO
be/VB
expansion-minded/JJ
companies/NNS
,/,
rather/RB
than/IN
raiders/NNS
or/CC
debt-happy/JJ
financiers/NNS
./.
And/CC
they/PRP
will/MD
be/VB
launching/VBG
lower-priced/JJ
and/CC
perhaps/RB
fewer/JJR
deals/NNS
,/,
now/RB
that/IN
it/PRP
's/VBZ
tougher/JJR
to/TO
finance/VB
them/PRP
./.
This/DT
is/VBZ
an/DT
ominous/JJ
sign/NN
for/IN
a/DT
stock/NN
market/NN
that/WDT
lately/RB
has/VBZ
been/VBN
fueled/VBN
by/IN
takeover/NN
speculation/NN
and/CC
bidding/NN
wars/NNS
for/IN
companies/NNS
that/WDT
put/VBP
themselves/PRP
up/IN
for/IN
sale/NN
./.
Whenever/WRB
the/DT
1980s/CD
merger/NN
boom/NN
seems/VBZ
to/TO
be/VB
stalling/VBG
,/,
shock/NN
waves/NNS
ripple/VBP
through/IN
the/DT
stock/NN
market/NN
./.
``/``
The/DT
market/NN
is/VBZ
overvalued/VBN
,/,
not/RB
cheap/JJ
,/,
''/''
says/VBZ
Alan/NNP
Gaines/NNP
of/IN
the/DT
New/NNP
York/NNP
money-management/NN
firm/NN
Gaines/NNP
Berland/NNP
./.
He/PRP
recently/RB
began/VBD
increasing/VBG
his/PRP$
cash/NN
position/NN
to/TO
45/CD
%/NN
of/IN
his/PRP$
portfolio/NN
./.
``/``
I/PRP
look/VBP
at/IN
where/WRB
deals/NNS
can/MD
get/VB
done/VBN
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
and/CC
they/PRP
're/VBP
not/RB
getting/VBG
done/VBN
''/''
at/IN
current/JJ
prices/NNS
./.
Lenders/NNS
are/VBP
growing/VBG
increasingly/RB
nervous/JJ
about/IN
debt-financed/JJ
takeovers/NNS
,/,
investment/NN
bankers/NNS
say/VBP
./.
``/``
You/PRP
had/VBD
a/DT
week/NN
of/IN
a/DT
deteriorating/VBG
junk-bond/NN
market/NN
that/WDT
ran/VBD
smack/RB
into/IN
the/DT
news/NN
on/IN
Friday/NNP
about/IN
what/WP
appeared/VBD
to/TO
be/VB
happening/VBG
to/TO
the/DT
bank/NN
debt/NN
market/NN
,/,
''/''
says/VBZ
Steven/NNP
Rattner/NNP
,/,
a/DT
partner/NN
and/CC
merger/NN
specialist/NN
with/IN
Lazard/NNP
Freres/NNP
&/CC
Co/NNP
./.
Trading/NN
dried/VBD
up/IN
Friday/NNP
in/IN
the/DT
market/NN
for/IN
high-yield/JJ
junk/NN
bonds/NNS
,/,
often/RB
used/VBN
to/TO
finance/VB
takeovers/NNS
./.
It/PRP
was/VBD
the/DT
latest/JJS
in/IN
a/DT
series/NN
of/IN
setbacks/NNS
for/IN
the/DT
junk/NN
bond/NN
market/NN
,/,
where/WRB
prices/NNS
began/VBD
weakening/VBG
last/JJ
month/NN
after/IN
Campeau/NNP
hit/VBD
a/DT
cash/NN
crunch/NN
./.
And/CC
banks/NNS
appear/VBP
to/TO
be/VB
taking/VBG
an/DT
increasingly/RB
skeptical/JJ
view/NN
of/IN
requests/NNS
for/IN
high-risk/JJ
takeover/NN
loans/NNS
./.
The/DT
group/NN
trying/VBG
to/TO
buy/VB
UAL/NNP
announced/VBD
Friday/NNP
that/IN
it/PRP
could/MD
n't/RB
arrange/VB
the/DT
$/$
7.2/CD
billion/CD
in/IN
bank/NN
loans/NNS
it/PRP
needs/VBZ
to/TO
buy/VB
the/DT
parent/NN
of/IN
United/NNP
Airlines/NNPS
for/IN
$/$
300/CD
a/DT
share/NN
./.
Takeover-stock/JJ
traders/NNS
today/NN
will/MD
be/VB
scrambling/VBG
to/TO
learn/VB
of/IN
any/DT
UAL/NNP
developments/NNS
,/,
and/CC
other/JJ
takeover/NN
stocks/NNS
are/VBP
likely/JJ
to/TO
trade/VB
in/IN
sympathy/NN
./.
Investment/NN
bankers/NNS
representing/VBG
the/DT
buy-out/NN
group/NN
and/CC
UAL/NNP
's/POS
board/NN
spent/VBD
a/DT
frantic/JJ
weekend/NN
trying/VBG
to/TO
hammer/VB
out/IN
new/JJ
terms/NNS
that/WDT
would/MD
be/VB
more/RBR
acceptable/JJ
to/TO
the/DT
banks/NNS
./.
After/IN
UAL/NNP
,/,
the/DT
stock/NN
viewed/VBN
as/IN
most/RBS
vulnerable/JJ
is/VBZ
American/NNP
Airlines/NNPS
'/POS
parent/NN
AMR/NNP
,/,
the/DT
target/NN
of/IN
a/DT
$/$
120-a-share/JJ
takeover/NN
proposal/NN
from/IN
New/NNP
York/NNP
real/JJ
estate/NN
developer/NN
Donald/NNP
Trump/NNP
./.
Trading/NN
in/IN
AMR/NNP
shares/NNS
was/VBD
suspended/VBN
shortly/RB
after/IN
3/CD
p.m./NN
EDT/NNP
Friday/NNP
and/CC
did/VBD
n't/RB
resume/VB
./.
Before/IN
the/DT
halt/NN
,/,
AMR/NNP
last/RB
traded/VBD
at/IN
98/CD
5\/8/CD
./.
Late/JJ
Friday/NNP
night/NN
,/,
the/DT
London/NNP
office/NN
of/IN
Jefferies/NNP
&/CC
Co./NNP
,/,
a/DT
Los/NNP
Angeles/NNP
securities/NNS
firm/NN
,/,
traded/VBD
AMR/NNP
shares/NNS
at/IN
prices/NNS
as/RB
low/RB
as/IN
80/CD
./.
Similarly/RB
,/,
Delta/NNP
Air/NNP
Lines/NNPS
and/CC
USAir/NNP
Group/NNP
dropped/VBD
10.1/CD
%/NN
and/CC
8.5/CD
%/NN
,/,
respectively/RB
,/,
on/IN
Friday/NNP
and/CC
could/MD
weaken/VB
further/RB
./.
Over/IN
the/DT
weeked/NN
,/,
however/RB
,/,
two/CD
developments/NNS
in/IN
other/JJ
deals/NNS
indicated/VBD
that/IN
commerical/JJ
banks/NNS
and/CC
Wall/NNP
Street/NNP
firms/NNS
still/RB
are/VBP
willing/JJ
to/TO
commit/VB
billions/NNS
of/IN
dollars/NNS
to/TO
finance/VB
takeover/NN
bids/NNS
launched/VBN
by/IN
major/JJ
companies/NNS
./.
Vitro/NNP
S.A./NNP
,/,
a/DT
major/JJ
Mexican/NNP
glass/NN
maker/NN
,/,
said/VBD
yesterday/NN
that/IN
it/PRP
agreed/VBD
to/TO
buy/VB
Anchor/NNP
Glass/NNP
Container/NNP
in/IN
a/DT
tender/NN
offer/NN
for/IN
$/$
21.25/CD
a/DT
share/NN
,/,
sweetened/VBN
from/IN
the/DT
original/JJ
$/$
20-a-share/JJ
offer/NN
Vitro/NNP
launched/VBD
two/CD
months/NNS
ago/IN
./.
On/IN
Friday/NNP
,/,
Anchor/NNP
shares/NNS
fell/VBD
1/CD
1\/4/CD
to/TO
close/VB
at/IN
18/CD
1\/2/CD
./.
For/IN
the/DT
broader/JJR
market/NN
,/,
the/DT
greatest/JJS
significance/NN
of/IN
the/DT
Vitro-Anchor/NNP
deal/NN
may/MD
be/VB
that/IN
it/PRP
was/VBD
put/VBN
together/RB
late/JJ
Friday/NNP
night/NN
--/:
after/IN
the/DT
market/NN
rout/NN
--/:
and/CC
involves/VBZ
a/DT
$/$
155/CD
million/CD
temporary/JJ
``/``
bridge/NN
''/''
loan/NN
from/IN
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
Securities/NNPS
and/CC
a/DT
$/$
139/CD
million/CD
loan/NN
from/IN
Security/NNP
Pacific/NNP
National/NNP
Bank/NNP
./.
Moreover/RB
,/,
to/TO
complete/VB
the/DT
entire/JJ
Anchor/NNP
Glass/NNP
purchase/NN
and/CC
refinance/VB
existing/VBG
debt/NN
,/,
Donaldson/NNP
said/VBD
it/PRP
is/VBZ
``/``
highly/RB
confident/JJ
''/''
that/IN
it/PRP
will/MD
be/VB
able/JJ
to/TO
sell/VB
$/$
400/CD
million/CD
of/IN
junk/NN
bonds/NNS
for/IN
Vitro/NNP
,/,
despite/IN
the/DT
current/JJ
disarray/NN
in/IN
the/DT
junk/NN
bond/NN
market/NN
./.
Donaldson/NNP
's/POS
statement/NN
is/VBZ
n't/RB
merely/RB
an/DT
idle/JJ
boast/NN
,/,
because/IN
those/DT
bonds/NNS
will/MD
have/VB
to/TO
be/VB
sold/VBN
before/IN
Donaldson/NNP
's/POS
bridge/NN
loan/NN
can/MD
be/VB
paid/VBN
back/RB
./.
Security/NNP
Pacific/NNP
,/,
meanwhile/RB
,/,
said/VBD
it/PRP
expects/VBZ
to/TO
arrange/VB
$/$
430/CD
million/CD
in/IN
bank/NN
loans/NNS
for/IN
Vitro/NNP
./.
In/IN
another/DT
takeover/NN
battle/NN
,/,
a/DT
spokesman/NN
for/IN
McCaw/NNP
Cellular/NNP
Communications/NNP
said/VBD
yesterday/NN
that/IN
McCaw/NNP
has/VBZ
been/VBN
advised/VBN
by/IN
three/CD
commercial/JJ
banks/NNS
that/IN
they/PRP
remain/VBP
``/``
highly/RB
confident/JJ
''/''
they/PRP
can/MD
arrange/VB
$/$
4.5/CD
billion/CD
of/IN
bank/NN
loans/NNS
for/IN
McCaw/NNP
's/POS
tender/JJ
offer/NN
for/IN
about/IN
45/CD
%/NN
of/IN
LIN/NNP
Broadcasting/NNP
,/,
``/``
notwithstanding/IN
recent/JJ
events/NNS
./.
''/''
McCaw/NNP
is/VBZ
offering/VBG
$/$
125/CD
a/DT
share/NN
for/IN
22/CD
million/CD
LIN/NNP
shares/NNS
,/,
thereby/RB
challenging/VBG
LIN/NNP
's/POS
proposal/NN
to/TO
spin/VB
off/IN
its/PRP$
television/NN
properties/NNS
,/,
pay/VB
shareholders/NNS
a/DT
$/$
20-a-share/JJ
special/JJ
dividend/NN
and/CC
combine/VB
its/PRP$
cellular-telephone/JJ
operations/NNS
with/IN
BellSouth/NNP
's/POS
cellular/JJ
business/NN
./.
On/IN
Friday/NNP
,/,
LIN/NNP
shares/NNS
were/VBD
among/IN
the/DT
few/JJ
takeover/NN
issues/NNS
that/WDT
did/VBD
n't/RB
fall/VB
much/RB
,/,
dropping/VBG
5/CD
1\/2/CD
,/,
or/CC
4.9/CD
%/NN
,/,
to/TO
close/VB
at/IN
107/CD
1\/2/CD
./.
Traders/NNS
and/CC
investment/NN
bankers/NNS
said/VBD
LIN/NNP
shares/NNS
were/VBD
n't/RB
hurt/VBN
much/RB
because/IN
BellSouth/NNP
is/VBZ
viewed/VBN
as/IN
a/DT
well-financed/JJ
corporate/JJ
buyer/NN
unlikely/JJ
to/TO
be/VB
affected/VBN
by/IN
skittishness/NN
among/IN
bankers/NNS
or/CC
bond/NN
buyers/NNS
./.
Investment/NN
bankers/NNS
interviewed/VBN
over/IN
the/DT
weekend/NN
see/VBP
a/DT
silver/NN
lining/VBG
for/IN
the/DT
merger/NN
business/NN
in/IN
the/DT
stock-market/NN
drop/NN
./.
Potential/JJ
bidders/NNS
for/IN
companies/NNS
``/``
were/VBD
saying/VBG
that/IN
things/NNS
were/VBD
beginning/VBG
to/TO
look/VB
expensive/JJ
,/,
''/''
says/VBZ
Mr./NNP
Rattner/NNP
of/IN
Lazard/NNP
./.
``/``
Nothing/NN
makes/VBZ
things/NNS
look/VB
cheaper/JJR
than/IN
a/DT
200-point/JJ
drop/NN
in/IN
the/DT
Dow/NNP
,/,
''/''
Mr./NNP
Rattner/NNP
says/VBZ
./.
``/``
Just/RB
as/IN
there/EX
are/VBP
people/NNS
waiting/VBG
to/TO
become/VB
bargain/NN
hunters/NNS
in/IN
the/DT
stock/NN
market/NN
,/,
there/EX
are/VBP
people/NNS
waiting/VBG
to/TO
become/VB
bargain/NN
hunters/NNS
in/IN
the/DT
deal/NN
market/NN
./.
''/''
Investment/NN
bankers/NNS
expect/VBP
most/JJS
of/IN
those/DT
bargain/NN
hunters/NNS
to/TO
be/VB
well-heeled/JJ
corporations/NNS
./.
``/``
In/IN
the/DT
past/NN
,/,
corporate/JJ
buyers/NNS
were/VBD
often/RB
discouraged/VBN
from/IN
making/VBG
bids/NNS
because/IN
of/IN
competition/NN
from/IN
LBO/NNP
firms/NNS
,/,
which/WDT
were/VBD
often/RB
prepared/VBN
to/TO
outbid/VB
''/''
the/DT
corporations/NNS
,/,
says/VBZ
J./NNP
Tomilson/NNP
Hill/NNP
,/,
head/NN
of/IN
mergers/NNS
and/CC
acquisitions/NNS
at/IN
Shearson/NNP
Lehman/NNP
Hutton/NNP
./.
Now/RB
,/,
``/``
corporate/JJ
buyers/NNS
should/MD
be/VB
willing/JJ
to/TO
re-enter/VB
the/DT
acquisition/NN
market/NN
because/IN
the/DT
competition/NN
from/IN
junkbond-financed/JJ
buyers/NNS
has/VBZ
been/VBN
reduced/VBN
./.
''/''
Many/JJ
takeover/NN
stocks/NNS
plunged/VBD
Friday/NNP
,/,
as/IN
speculators/NNS
retained/VBD
their/PRP$
confidence/NN
in/IN
corporate/JJ
buyers/NNS
but/CC
fled/VBD
from/IN
the/DT
socalled/VBN
whisper/NN
stocks/NNS
,/,
the/DT
targets/NNS
of/IN
rumored/VBN
deals/NNS
./.
Columbia/NNP
Pictures/NNPS
Entertainment/NNP
,/,
which/WDT
has/VBZ
agreed/VBN
to/TO
a/DT
friendly/JJ
$/$
27-a-share/JJ
bid/NN
from/IN
Sony/NNP
of/IN
Japan/NNP
,/,
fell/VBD
only/RB
1\/8/CD
to/TO
close/VB
at/IN
26/CD
5\/8/CD
./.
But/CC
several/JJ
stocks/NNS
long/RB
rumored/VBN
to/TO
be/VB
ripe/JJ
for/IN
a/DT
takeover/NN
or/CC
restructuring/VBG
fell/VBD
10/CD
%/NN
or/CC
more/JJR
./.
They/PRP
include/VBP
USX/NNP
,/,
down/IN
11.7/CD
%/NN
;/:
Upjohn/NNP
,/,
down/IN
11.1/CD
%/NN
;/:
Campbell/NNP
Soup/NNP
,/,
down/IN
11/CD
%/NN
;/:
Paramount/NNP
Communications/NNPS
,/,
off/IN
10.3/CD
%/NN
;/:
Woolworth/NNP
,/,
down/IN
10.2/CD
%/NN
;/:
Delta/NNP
Air/NNP
Lines/NNPS
,/,
down/IN
10.1/CD
%/NN
,/,
and/CC
MCA/NNP
,/,
down/IN
9.7/CD
%/NN
./.
The/DT
market/NN
--/:
and/CC
investment/NN
bankers/NNS
--/:
are/VBP
even/RB
less/JJR
sanguine/NN
about/IN
companies/NNS
that/WDT
have/VBP
had/VBN
at/IN
least/JJS
one/CD
bid/NN
,/,
merger/NN
agreement/NN
or/CC
restructuring/VBG
plan/NN
fall/VB
through/IN
already/RB
./.
Given/VBN
the/DT
weakness/NN
in/IN
both/PDT
the/DT
junk/NN
bond/NN
market/NN
and/CC
the/DT
stock/NN
market/NN
,/,
traders/NNS
fear/VBP
that/IN
these/DT
transactions/NNS
may/MD
be/VB
revised/VBN
yet/RB
again/RB
./.
Examples/NNS
include/VBP
Kollmorgen/NNP
,/,
whose/WP$
agreement/NN
to/TO
be/VB
acquired/VBN
for/IN
$/$
25/CD
a/DT
share/NN
by/IN
Vernitron/NNP
collapsed/VBD
last/JJ
month/NN
./.
Kollmorgen/NNP
shares/NNS
fell/VBD
nearly/RB
20/CD
%/NN
on/IN
Friday/NNP
to/TO
close/VB
at/IN
12/CD
7\/8/CD
./.
Ramada/NNP
,/,
which/WDT
first/RB
delayed/VBD
and/CC
then/RB
shelved/VBD
a/DT
$/$
400/CD
million/CD
junk/NN
bond/NN
sale/NN
that/WDT
was/VBD
designed/VBN
to/TO
help/VB
finance/VB
a/DT
restructuring/VBG
,/,
fell/VBD
15.6/CD
%/NN
to/TO
close/VB
at/IN
9/CD
1\/2/CD
./.
Ramada/NNP
has/VBZ
said/VBN
it/PRP
hopes/VBZ
to/TO
propose/VB
a/DT
new/JJ
restructuring/VBG
plan/NN
but/CC
has/VBZ
n't/RB
indicated/VBN
when/WRB
it/PRP
will/MD
do/VB
so/RB
./.
Shares/NNS
of/IN
American/NNP
Medical/NNP
International/NNP
,/,
which/WDT
agreed/VBD
last/JJ
week/NN
to/TO
accept/VB
a/DT
lower/JJR
price/NN
from/IN
a/DT
buy-out/NN
group/NN
that/WDT
includes/VBZ
First/NNP
Boston/NNP
Corp./NNP
and/CC
the/DT
Pritzker/NNP
family/NN
of/IN
Chicago/NNP
,/,
fell/VBD
15.8/CD
%/NN
on/IN
Friday/NNP
to/TO
close/VB
at/IN
20/CD
./.
The/DT
buy-out/NN
group/NN
is/VBZ
offering/VBG
$/$
26.50/CD
a/DT
share/NN
for/IN
63/CD
million/CD
American/NNP
Medical/NNP
shares/NNS
,/,
down/IN
from/IN
its/PRP$
offer/NN
in/IN
July/NNP
of/IN
$/$
28/CD
a/DT
share/NN
for/IN
68.8/CD
million/CD
shares/NNS
./.
But/CC
investment/NN
bankers/NNS
say/VBP
the/DT
market/NN
may/MD
have/VB
oversold/VB
some/DT
takeover-related/JJ
stocks/NNS
./.
Hilton/NNP
Hotels/NNPS
,/,
for/IN
example/NN
,/,
was/VBD
among/IN
the/DT
worst-hit/JJ
issues/NNS
,/,
falling/VBG
20.2/CD
%/NN
to/TO
close/VB
at/IN
85/CD
,/,
down/IN
21/CD
1\/2/CD
on/IN
Friday/NNP
./.
Hilton/NNP
currently/RB
is/VBZ
soliciting/VBG
bids/NNS
for/IN
a/DT
sale/NN
of/IN
part/NN
or/CC
all/DT
of/IN
its/PRP$
hotel/NN
and/CC
casino/NN
businesses/NNS
./.
People/NNS
familiar/JJ
with/IN
Hilton/NNP
said/VBD
over/IN
the/DT
weekend/NN
that/IN
the/DT
depth/NN
of/IN
the/DT
sell-off/NN
in/IN
Hilton/NNP
shares/NNS
was/VBD
unwarranted/JJ
because/IN
none/NN
of/IN
the/DT
likely/JJ
buyers/NNS
would/MD
be/VB
dependent/JJ
on/IN
junk-bond/JJ
financing/NN
./.
However/RB
,/,
they/PRP
conceded/VBD
that/IN
some/DT
potential/JJ
bidders/NNS
would/MD
rely/VB
on/IN
bank/NN
loans/NNS
and/CC
would/MD
be/VB
hurt/VBN
if/IN
the/DT
troubles/NNS
of/IN
the/DT
UAL/NNP
buy-out/NN
group/NN
signified/VBD
a/DT
general/JJ
unwillingness/NN
among/IN
banks/NNS
to/TO
provide/VB
credit/NN
for/IN
debt-financed/JJ
takeovers/NNS
./.
Hilton/NNP
officials/NNS
said/VBD
they/PRP
were/VBD
n't/RB
worried/VBN
about/IN
the/DT
drop/NN
in/IN
the/DT
company/NN
's/POS
stock/NN
./.
William/NNP
Lebo/NNP
,/,
Hilton/NNP
's/POS
general/JJ
counsel/NN
,/,
said/VBD
plans/NNS
to/TO
consider/VB
a/DT
sale/NN
of/IN
the/DT
company/NN
or/CC
some/DT
of/IN
its/PRP$
assets/NNS
are/VBP
``/``
on/IN
track/NN
''/''
for/IN
what/WP
has/VBZ
been/VBN
described/VBN
previously/RB
as/IN
``/``
a/DT
slow/JJ
and/CC
deliberate/JJ
process/NN
./.
''/''
``/``
I/PRP
ca/MD
n't/RB
believe/VB
that/IN
any/DT
potential/JJ
buyer/NN
for/IN
Hilton/NNP
would/MD
be/VB
affected/VBN
by/IN
one/CD
day/NN
's/POS
trading/NN
,/,
''/''
Mr./NNP
Lebo/NNP
said/VBD
./.
But/CC
the/DT
stock/NN
market/NN
as/IN
a/DT
whole/NN
,/,
bolstered/VBD
as/IN
it/PRP
is/VBZ
by/IN
takeover/NN
speculation/NN
,/,
remains/VBZ
vulnerable/JJ
to/TO
any/DT
further/JJ
pullback/NN
by/IN
takeover/NN
financiers/NNS
,/,
both/DT
in/IN
the/DT
junkbond/NN
market/NN
and/CC
among/IN
commercial/JJ
banks/NNS
./.
For/IN
debt-ridden/JJ
suitors/NNS
,/,
``/``
the/DT
takeover/NN
game/NN
has/VBZ
been/VBN
over/IN
for/IN
some/DT
time/NN
,/,
''/''
says/VBZ
New/NNP
York/NNP
money/NN
manager/NN
Neil/NNP
Weisman/NNP
of/IN
Chilmark/NNP
Capital/NNP
,/,
who/WP
has/VBZ
been/VBN
keeping/VBG
85/CD
%/NN
of/IN
his/PRP$
portfolio/NN
in/IN
cash/NN
./.
``/``
The/DT
market/NN
is/VBZ
just/RB
waking/VBG
up/IN
to/TO
that/DT
point/NN
./.
''/''
Pauline/NNP
Yoshihashi/NNP
in/IN
Los/NNP
Angeles/NNP
contributed/VBD
to/TO
this/DT
column/NN
./.
Of/IN
all/PDT
the/DT
one-time/JJ
expenses/NNS
incurred/VBN
by/IN
a/DT
corporation/NN
or/CC
professional/JJ
firm/JJ
,/,
few/JJ
are/VBP
larger/JJR
or/CC
longer/JJR
term/NN
than/IN
the/DT
purchase/NN
of/IN
real/JJ
estate/NN
or/CC
the/DT
signing/NN
of/IN
a/DT
commercial/JJ
lease/NN
./.
To/TO
take/VB
full/JJ
advantage/NN
of/IN
the/DT
financial/JJ
opportunities/NNS
in/IN
this/DT
commitment/NN
,/,
however/RB
,/,
the/DT
corporation/NN
or/CC
professional/JJ
firm/NN
must/MD
do/VB
more/RBR
than/IN
negotiate/VB
the/DT
best/JJS
purchase/NN
price/NN
or/CC
lease/NN
terms/NNS
./.
It/PRP
must/MD
also/RB
evaluate/VB
the/DT
real-estate/NN
market/NN
in/IN
the/DT
chosen/VBN
location/NN
from/IN
a/DT
new/JJ
perspective/NN
./.
Specifically/RB
,/,
it/PRP
must/MD
understand/VB
how/WRB
real-estate/NN
markets/NNS
overreact/VBP
to/TO
shifts/NNS
in/IN
regional/JJ
economies/NNS
and/CC
then/RB
take/VBP
advantage/NN
of/IN
these/DT
opportunities/NNS
./.
When/WRB
a/DT
regional/JJ
economy/NN
catches/VBZ
cold/NN
,/,
the/DT
local/JJ
real-estate/NN
market/NN
gets/VBZ
pneumonia/NN
./.
In/IN
other/JJ
words/NNS
,/,
real-estate/NN
market/NN
indicators/NNS
,/,
such/JJ
as/IN
building/NN
permits/NNS
and/CC
leasing/NN
activity/NN
,/,
plummet/VBP
much/RB
further/RB
than/IN
a/DT
local/JJ
economy/NN
in/IN
recession/NN
./.
This/DT
was/VBD
seen/VBN
in/IN
the/DT
late/JJ
1960s/CD
in/IN
Los/NNP
Angeles/NNP
and/CC
the/DT
mid-1970s/CD
in/IN
New/NNP
York/NNP
./.
But/CC
the/DT
reverse/NN
is/VBZ
also/RB
true/JJ
:/:
When/WRB
a/DT
region/NN
's/POS
economy/NN
rebounds/VBZ
from/IN
a/DT
slowdown/NN
,/,
these/DT
real-estate/NN
indicators/NNS
will/MD
rebound/VB
far/RB
faster/RBR
than/IN
the/DT
improving/VBG
economy/NN
./.
Why/WRB
do/VBP
local/JJ
real-estate/NN
markets/NNS
overreact/VB
to/TO
regional/JJ
economic/JJ
cycles/NNS
?/.
Because/IN
real-estate/NN
purchases/NNS
and/CC
leases/NNS
are/VBP
such/JJ
major/JJ
long-term/JJ
commitments/NNS
that/IN
most/JJS
companies/NNS
and/CC
individuals/NNS
make/VBP
these/DT
decisions/NNS
only/RB
when/WRB
confident/JJ
of/IN
future/JJ
economic/JJ
stability/NN
and/CC
growth/NN
./.
Metropolitan/NNP
Detroit/NNP
was/VBD
written/VBN
off/IN
economically/RB
during/IN
the/DT
early/JJ
1980s/CD
,/,
as/IN
the/DT
domestic/JJ
auto/NN
industry/NN
suffered/VBD
a/DT
serious/JJ
sales/NNS
depression/NN
and/CC
adjustment/NN
./.
Area/NN
employment/NN
dropped/VBD
by/IN
13/CD
%/NN
from/IN
its/PRP$
1979/CD
peak/NN
and/CC
retail/JJ
sales/NNS
were/VBD
down/IN
14/CD
%/NN
./.
However/RB
,/,
the/DT
real-estate/NN
market/NN
was/VBD
hurt/VBN
even/RB
more/JJR
./.
For/IN
example/NN
,/,
residential/JJ
building/NN
permits/NNS
in/IN
the/DT
trough/NN
year/NN
of/IN
1982/CD
were/VBD
off/IN
76/CD
%/NN
from/IN
the/DT
1979/CD
peak/NN
level/NN
./.
Once/RB
metropolitan/JJ
Detroit/NNP
's/POS
economy/NN
rallied/VBD
in/IN
the/DT
mid-1980s/CD
,/,
real/JJ
estate/NN
rebounded/VBD
./.
Building/NN
permits/NNS
,/,
for/IN
example/NN
,/,
soared/VBD
a/DT
staggering/JJ
400/CD
%/NN
between/IN
1982/CD
and/CC
the/DT
peak/NN
year/NN
of/IN
1986/CD
./.
Where/WRB
,/,
savvy/JJ
corporations/NNS
and/CC
professional/JJ
firms/NNS
are/VBP
now/RB
asking/VBG
,/,
are/VBP
today/NN
's/POS
opportunities/NNS
?/.
Look/VB
no/RB
further/RB
than/IN
metropolitan/JJ
Houston/NNP
and/CC
Denver/NNP
,/,
two/CD
of/IN
the/DT
most/RBS
depressed/VBN
,/,
overbuilt/NN
and/CC
potentially/RB
undervalued/VBD
real-estate/NN
markets/NNS
in/IN
the/DT
nation/NN
./.
Of/IN
course/NN
,/,
some/DT
observers/NNS
have/VBP
touted/VBN
Houston/NNP
and/CC
Denver/NNP
for/IN
the/DT
past/JJ
five/CD
years/NNS
as/IN
a/DT
counter-cyclical/JJ
play/NN
./.
But/CC
now/RB
appears/VBZ
to/TO
be/VB
the/DT
time/NN
to/TO
act/VB
./.
Metropolitan/NNP
Houston/NNP
's/POS
economy/NN
did/VBD
drop/VB
and/CC
then/RB
flatten/VB
in/IN
the/DT
years/NNS
after/IN
its/PRP$
1982/CD
peak/NN
./.
In/IN
the/DT
mid-1980s/CD
,/,
employment/NN
was/VBD
down/IN
as/RB
much/JJ
as/IN
5/CD
%/NN
from/IN
the/DT
1982/CD
peak/NN
and/CC
retail/JJ
sales/NNS
were/VBD
off/IN
13/CD
%/NN
./.
The/DT
real-estate/NN
market/NN
suffered/VBD
even/RB
more/RBR
severe/JJ
setbacks/NNS
./.
Office/NN
construction/NN
dropped/VBD
97/CD
%/NN
./.
The/DT
vacancy/NN
rate/NN
soared/VBD
more/JJR
than/IN
20/CD
%/NN
in/IN
nearly/RB
every/DT
product/NN
category/NN
,/,
and/CC
more/JJR
than/IN
30/CD
%/NN
of/IN
office/NN
space/NN
was/VBD
vacant/JJ
./.
To/TO
some/DT
observers/NNS
,/,
the/DT
empty/JJ
office/NN
buildings/NNS
of/IN
Houston/NNP
's/POS
``/``
see-through/JJ
skyline/NN
''/''
were/VBD
indicative/JJ
of/IN
a/DT
very/RB
troubled/JJ
economy/NN
./.
As/IN
usual/JJ
,/,
the/DT
real-estate/NN
market/NN
had/VBD
overreacted/VBN
./.
Actually/RB
,/,
the/DT
region/NN
's/POS
economy/NN
retained/VBD
a/DT
firm/JJ
foundation/NN
./.
Metropolitan/NNP
Houston/NNP
's/POS
population/NN
has/VBZ
held/VBN
steady/JJ
over/IN
the/DT
past/JJ
six/CD
years/NNS
./.
And/CC
personal/JJ
income/NN
,/,
after/IN
slumping/VBG
in/IN
the/DT
mid-1980s/CD
,/,
has/VBZ
returned/VBN
to/TO
its/PRP$
1982/CD
level/NN
in/IN
real/JJ
dollar/NN
terms/NNS
./.
Today/NN
,/,
metropolitan/JJ
Houston/NNP
's/POS
real-estate/NN
market/NN
is/VBZ
poised/VBN
for/IN
a/DT
significant/JJ
turnaround/NN
./.
More/JJR
than/IN
42,000/CD
jobs/NNS
were/VBD
added/VBN
in/IN
metro/NN
Houston/NNP
last/JJ
year/NN
,/,
primarily/RB
in/IN
biotechnology/NN
,/,
petrochemical/NN
processing/NN
,/,
and/CC
the/DT
computer/NN
industry/NN
./.
This/DT
growth/NN
puts/VBZ
Houston/NNP
in/IN
the/DT
top/JJ
five/CD
metro/NN
areas/NNS
in/IN
the/DT
nation/NN
last/JJ
year/NN
./.
And/CC
forecasts/NNS
project/VBP
a/DT
2.5/CD
%/NN
to/TO
3/CD
%/NN
growth/NN
rate/NN
in/IN
jobs/NNS
over/IN
the/DT
next/JJ
few/JJ
years/NNS
--/:
nearly/RB
twice/RB
the/DT
national/JJ
average/NN
./.
Denver/NNP
is/VBZ
another/DT
metropolitan/JJ
area/NN
where/WRB
the/DT
commercial/JJ
real-estate/NN
market/NN
has/VBZ
overreacted/VBN
to/TO
the/DT
region/NN
's/POS
economic/JJ
trends/NNS
,/,
although/IN
Denver/NNP
has/VBZ
not/RB
experienced/VBN
as/IN
severe/JJ
an/DT
economic/JJ
downturn/NN
as/IN
Houston/NNP
./.
By/IN
some/DT
measures/NNS
,/,
metropolitan/JJ
Denver/NNP
's/POS
economy/NN
has/VBZ
actually/RB
improved/VBN
in/IN
the/DT
past/JJ
four/CD
years/NNS
./.
Its/PRP$
population/NN
has/VBZ
continued/VBN
to/TO
increase/VB
since/IN
1983/CD
,/,
the/DT
peak/NN
year/NN
of/IN
the/DT
economic/JJ
cycle/NN
./.
Employment/NN
is/VBZ
now/RB
4/CD
%/NN
higher/JJR
than/IN
in/IN
1983/CD
./.
Buying/VBG
income/NN
in/IN
real/JJ
dollars/NNS
actually/RB
increased/VBD
15/CD
%/NN
between/IN
1983/CD
and/CC
1987/CD
the/DT
most/RBS
recent/JJ
year/NN
available/JJ
The/DT
rates/NNS
of/IN
increase/NN
,/,
however/RB
,/,
are/VBP
less/JJR
than/IN
the/DT
rapid/JJ
growth/NN
of/IN
the/DT
boom/NN
years/NNS
,/,
and/CC
this/DT
has/VBZ
resulted/VBN
in/IN
a/DT
loss/NN
of/IN
confidence/NN
in/IN
the/DT
economy/NN
./.
In/IN
a/DT
self-fulfilling/JJ
prophecy/NN
,/,
therefore/RB
,/,
the/DT
region/NN
's/POS
real-estate/NN
market/NN
all/DT
but/CC
collapsed/VBD
in/IN
recent/JJ
years/NNS
./.
Housing/NN
building/NN
permits/NNS
are/VBP
down/IN
more/RBR
than/IN
75/CD
%/NN
from/IN
their/PRP$
1983/CD
peaks/NNS
./.
Although/IN
no/DT
one/NN
can/MD
predict/VB
when/WRB
metropolitan/JJ
Denver/NNP
's/POS
real-estate/NN
market/NN
will/MD
rebound/VB
,/,
major/JJ
public/JJ
works/NNS
projects/NNS
costing/VBG
several/JJ
billion/CD
dollars/NNS
are/VBP
under/IN
way/NN
or/CC
planned/VBD
--/:
such/JJ
as/IN
a/DT
new/JJ
convention/NN
center/NN
,/,
a/DT
major/JJ
beltway/NN
encircling/VBG
the/DT
metropolitan/JJ
area/NN
,/,
and/CC
a/DT
new/JJ
regional/JJ
airport/NN
./.
When/WRB
Denver/NNP
's/POS
regional/JJ
economy/NN
begins/VBZ
to/TO
grow/VB
faster/RBR
--/:
such/PDT
a/DT
recovery/NN
could/MD
occur/VB
as/RB
early/RB
as/IN
next/JJ
year/NN
--/:
business/NN
and/CC
consumer/NN
confidence/NN
will/MD
return/VB
,/,
and/CC
the/DT
resulting/VBG
explosion/NN
of/IN
real-estate/NN
activity/NN
will/MD
dwarf/VB
the/DT
general/JJ
economic/JJ
rebound/NN
./.
What/WDT
real-estate/NN
strategy/NN
should/MD
one/NN
follow/VB
in/IN
a/DT
metropolitan/JJ
area/NN
whose/WP$
economic/JJ
health/NN
is/VBZ
not/RB
as/RB
easy/JJ
to/TO
determine/VB
as/IN
Houston/NNP
's/POS
or/CC
Denver/NNP
's/POS
?/.
Generally/RB
,/,
overcapacity/NN
in/IN
commercial/JJ
real/JJ
estate/NN
is/VBZ
dropping/VBG
from/IN
its/PRP$
mid-1980s/CD
peak/NN
,/,
even/RB
in/IN
such/JJ
economically/RB
healthy/JJ
metropolitan/JJ
areas/NNS
as/IN
Washington/NNP
,/,
New/NNP
York/NNP
and/CC
Los/NNP
Angeles/NNP
./.
Vacancy/NN
rates/NNS
in/IN
the/DT
15/CD
%/NN
to/TO
19/CD
%/NN
range/NN
today/NN
may/MD
easily/RB
rise/VB
to/TO
the/DT
low/JJ
to/TO
mid-20/CD
%/NN
range/NN
in/IN
a/DT
couple/NN
of/IN
years/NNS
./.
Under/IN
these/DT
conditions/NNS
,/,
even/RB
a/DT
flattening/VBG
out/IN
of/IN
economic/JJ
growth/NN
--/:
``/``
catching/VBG
cold/NN
''/''
--/:
in/IN
the/DT
healthy/JJ
metropolitan/JJ
areas/NNS
will/MD
create/VB
significant/JJ
opportunities/NNS
for/IN
corporations/NNS
and/CC
professional/JJ
service/NN
firms/NNS
looking/VBG
for/IN
bargains/NNS
as/IN
the/DT
realestate/NN
industry/NN
catches/VBZ
pneumonia/NN
./.
Those/DT
looking/VBG
for/IN
real-estate/NN
bargains/NNS
in/IN
distressed/JJ
metropolitan/JJ
areas/NNS
should/MD
lock/VB
in/IN
leases/NNS
or/CC
buy/VB
now/RB
;/:
those/DT
looking/VBG
in/IN
healthy/JJ
metropolitan/JJ
areas/NNS
should/MD
take/VB
a/DT
short-term/JJ
three-year/JJ
the/DT
bargains/NNS
ahead/RB
./.
Mr./NNP
Leinberger/NNP
is/VBZ
managing/VBG
partner/NN
of/IN
a/DT
real-estate/NN
advisory/JJ
firm/NN
based/VBN
in/IN
Beverly/NNP
Hills/NNPS
,/,
Calif/NNP
./.
Kysor/NNP
Industrial/NNP
Corp./NNP
said/VBD
it/PRP
expects/VBZ
its/PRP$
third-quarter/NN
net/NN
earnings/NNS
to/TO
be/VB
between/IN
two/CD
cents/NNS
and/CC
four/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
61/CD
cents/NNS
a/DT
share/NN
a/DT
year/NN
ago/IN
./.
Analysts/NNS
had/VBD
been/VBN
projecting/VBG
that/IN
the/DT
company/NN
's/POS
earnings/NNS
would/MD
be/VB
between/IN
25/CD
cents/NNS
and/CC
30/CD
cents/NNS
a/DT
share/NN
./.
The/DT
year-earlier/JJ
third-quarter/NN
earnings/NNS
amounted/VBD
to/TO
$/$
4.1/CD
million/CD
./.
The/DT
company/NN
said/VBD
a/DT
drop/NN
in/IN
activity/NN
in/IN
the/DT
powerboat/NN
industry/NN
reduced/VBD
sales/JJ
volume/NN
at/IN
its/PRP$
two/CD
marine-related/JJ
operations/NNS
./.
Also/RB
,/,
the/DT
company/NN
said/VBD
its/PRP$
commercial/JJ
products/NNS
operation/NN
failed/VBD
to/TO
meet/VB
forecasts/NNS
./.
Kysor/NNP
,/,
a/DT
maker/NN
of/IN
heavy-duty/JJ
truck/NN
and/CC
commercial/JJ
refrigeration/NN
equipment/NN
,/,
said/VBD
it/PRP
expects/VBZ
its/PRP$
fourth-quarter/NN
earnings/NNS
to/TO
be/VB
more/RBR
closely/RB
in/IN
line/NN
with/IN
usual/JJ
levels/NNS
,/,
which/WDT
are/VBP
between/IN
30/CD
cents/NNS
and/CC
50/CD
cents/NNS
a/DT
share/NN
./.
Common/NNP
Cause/NNP
asked/VBD
both/PDT
the/DT
Senate/NNP
Ethics/NNP
Committee/NNP
and/CC
the/DT
Justice/NNP
Department/NNP
to/TO
investigate/VB
$/$
1/CD
million/CD
in/IN
political/JJ
gifts/NNS
by/IN
Arizona/NNP
businessman/NN
Charles/NNP
Keating/NNP
to/TO
five/CD
U.S./NNP
senators/NNS
who/WP
interceded/VBD
with/IN
thrift-industry/NN
regulators/NNS
for/IN
him/PRP
./.
Mr./NNP
Keating/NNP
is/VBZ
currently/RB
the/DT
subject/NN
of/IN
a/DT
$/$
1.1/CD
billion/CD
federal/JJ
anti-racketeering/JJ
lawsuit/NN
accusing/VBG
him/PRP
of/IN
bleeding/VBG
off/IN
assets/NNS
of/IN
a/DT
California/NNP
thrift/NN
he/PRP
controlled/VBD
,/,
Lincoln/NNP
Savings/NNP
&/CC
Loan/NNP
Association/NNP
,/,
and/CC
driving/VBG
it/PRP
into/IN
insolvency/NN
./.
Fred/NNP
Wertheimer/NNP
--/:
president/NN
of/IN
Common/NNP
Cause/NNP
,/,
the/DT
self-styled/JJ
citizens/NNS
lobby/NN
--/:
said/VBD
Mr./NNP
Keating/NNP
already/RB
has/VBZ
conceded/VBN
attempting/VBG
to/TO
buy/VB
influence/NN
with/IN
the/DT
lawmakers/NNS
--/:
Democratic/NNP
Sens./NNP
Dennis/NNP
DeConcini/NNP
of/IN
Arizona/NNP
,/,
Alan/NNP
Cranston/NNP
of/IN
California/NNP
,/,
John/NNP
Glenn/NNP
of/IN
Ohio/NNP
and/CC
Donald/NNP
Riegle/NNP
of/IN
Michigan/NNP
;/:
and/CC
GOP/NNP
Sen./NNP
John/NNP
McCain/NNP
of/IN
Arizona/NNP
./.
Mr./NNP
Wertheimer/NNP
based/VBD
this/DT
on/IN
a/DT
statement/NN
by/IN
Mr./NNP
Keating/NNP
that/WDT
was/VBD
quoted/VBN
in/IN
a/DT
Wall/NNP
Street/NNP
Journal/NNP
story/NN
in/IN
April/NNP
:/:
``/``
One/CD
question/NN
.../:
had/VBD
to/TO
do/VB
with/IN
whether/IN
my/PRP$
financial/JJ
support/NN
in/IN
any/DT
way/NN
influenced/VBD
several/JJ
political/JJ
figures/NNS
to/TO
take/VB
up/IN
my/PRP$
cause/NN
./.
I/PRP
want/VBP
to/TO
say/VB
in/IN
the/DT
most/RBS
forceful/JJ
way/NN
I/PRP
can/MD
:/:
I/PRP
certainly/RB
hope/VB
so/RB
./.
''/''
In/IN
a/DT
highly/RB
unusual/JJ
meeting/NN
in/IN
Sen./NNP
DeConcini/NNP
's/POS
office/NN
in/IN
April/NNP
1987/CD
,/,
the/DT
five/CD
senators/NNS
asked/VBD
federal/JJ
regulators/NNS
to/TO
ease/VB
up/IN
on/IN
Lincoln/NNP
./.
According/VBG
to/TO
notes/NNS
taken/VBN
by/IN
one/CD
of/IN
the/DT
participants/NNS
at/IN
the/DT
meeting/NN
,/,
the/DT
regulators/NNS
said/VBD
Lincoln/NNP
was/VBD
gambling/VBG
dangerously/RB
with/IN
depositors/NNS
'/POS
federally/RB
insured/VBN
money/NN
and/CC
was/VBD
``/``
a/DT
ticking/VBG
time/NN
bomb/NN
./.
''/''
Mr./NNP
Keating/NNP
had/VBD
complained/VBN
that/IN
the/DT
regulators/NNS
were/VBD
being/VBG
too/RB
zealous/JJ
./.
The/DT
notes/NNS
show/VBP
that/IN
Sen./NNP
DeConcini/NNP
called/VBD
the/DT
Federal/NNP
Home/NNP
Loan/NNP
Bank/NNP
Board/NNP
's/POS
regulations/NNS
``/``
grossly/RB
unfair/JJ
,/,
''/''
and/CC
that/IN
Sen./NNP
Glenn/NNP
insisted/VBD
that/IN
Mr./NNP
Keating/NNP
's/POS
thrift/NN
was/VBD
``/``
viable/JJ
and/CC
profitable/JJ
./.
''/''
For/IN
the/DT
next/JJ
two/CD
years/NNS
,/,
the/DT
Bank/NNP
Board/NNP
,/,
which/WDT
at/IN
the/DT
time/NN
was/VBD
the/DT
agency/NN
responsible/JJ
for/IN
regulating/VBG
thrifts/NNS
,/,
failed/VBD
to/TO
act/VB
--/:
even/RB
after/IN
federal/JJ
auditors/NNS
warned/VBD
in/IN
May/NNP
1987/CD
that/IN
Mr./NNP
Keating/NNP
had/VBD
caused/VBN
Lincoln/NNP
to/TO
become/VB
insolvent/JJ
./.
Lincoln/NNP
's/POS
parent/NN
company/NN
,/,
American/NNP
Continental/NNP
Corp./NNP
,/,
entered/VBD
bankruptcy-law/NN
proceedings/NNS
this/DT
April/NNP
13/CD
,/,
and/CC
regulators/NNS
seized/VBD
the/DT
thrift/NN
the/DT
next/JJ
day/NN
./.
The/DT
newly/RB
formed/VBN
Resolution/NNP
Trust/NNP
Corp./NNP
,/,
successor/NN
to/TO
the/DT
Bank/NNP
Board/NNP
,/,
filed/VBD
suit/NN
against/IN
Mr./NNP
Keating/NNP
and/CC
several/JJ
others/NNS
on/IN
Sept./NNP
15/CD
./.
Mr./NNP
Keating/NNP
has/VBZ
filed/VBN
his/PRP$
own/JJ
suit/NN
,/,
alleging/VBG
that/IN
his/PRP$
property/NN
was/VBD
taken/VBN
illegally/RB
./.
The/DT
cost/NN
to/TO
taxpayers/NNS
of/IN
Lincoln/NNP
's/POS
collapse/NN
has/VBZ
been/VBN
estimated/VBN
at/IN
as/RB
much/JJ
as/IN
$/$
2.5/CD
billion/CD
./.
Details/NNS
of/IN
the/DT
affair/NN
have/VBP
become/VBN
public/JJ
gradually/RB
over/IN
the/DT
past/JJ
two/CD
years/NNS
,/,
mostly/RB
as/IN
a/DT
result/NN
of/IN
reporting/VBG
by/IN
several/JJ
newspapers/NNS
./.
In/IN
the/DT
midst/NN
of/IN
his/PRP$
1988/CD
re-election/NN
campaign/NN
,/,
Sen./NNP
Riegle/NNP
,/,
chairman/NN
of/IN
the/DT
Senate/NNP
Banking/NNP
Committee/NNP
,/,
returned/VBD
$/$
76,000/CD
in/IN
contributions/NNS
after/IN
a/DT
Detroit/NNP
newspaper/NN
said/VBD
that/IN
Mr./NNP
Keating/NNP
had/VBD
gathered/VBN
the/DT
money/NN
for/IN
him/PRP
about/IN
two/CD
weeks/NNS
before/IN
the/DT
meeting/NN
with/IN
regulators/NNS
./.
Sen./NNP
DeConcini/NNP
,/,
after/IN
months/NNS
of/IN
fending/VBG
off/IN
intense/JJ
press/NN
criticism/NN
,/,
returned/VBD
$/$
48,000/CD
only/JJ
last/JJ
month/NN
,/,
shortly/RB
after/IN
the/DT
government/NN
formally/RB
accused/VBD
Mr./NNP
Keating/NNP
of/IN
defrauding/VBG
Lincoln/NNP
./.
In/IN
addition/NN
,/,
Sen./NNP
McCain/NNP
last/JJ
week/NN
disclosed/VBD
that/IN
he/PRP
belatedly/RB
had/VBD
paid/VBN
$/$
13,433/CD
to/TO
American/NNP
Continental/NNP
as/IN
reimbursement/NN
for/IN
trips/NNS
he/PRP
and/CC
his/PRP$
family/NN
took/VBD
aboard/IN
the/DT
corporate/JJ
jet/NN
to/TO
Mr./NNP
Keating/NNP
's/POS
vacation/NN
home/NN
at/IN
Cat/NNP
Cay/NNP
,/,
the/DT
Bahamas/NNPS
,/,
from/IN
1984/CD
through/IN
1986/CD
./.
Sen./NNP
McCain/NNP
said/VBD
he/PRP
had/VBD
meant/VBN
to/TO
pay/VB
for/IN
the/DT
trips/NNS
at/IN
the/DT
time/NN
but/CC
that/IN
the/DT
matter/NN
``/``
fell/VBD
between/IN
the/DT
cracks/NNS
./.
''/''
Mr./NNP
Keating/NNP
,/,
his/PRP$
family/NN
members/NNS
and/CC
associates/NNS
also/RB
donated/VBD
$/$
112,000/CD
to/TO
Sen./NNP
McCain/NNP
's/POS
congressional/JJ
campaigns/NNS
over/IN
the/DT
years/NNS
,/,
according/VBG
to/TO
press/NN
accounts/NNS
./.
But/CC
Sen./NNP
McCain/NNP
says/VBZ
Mr./NNP
Keating/NNP
broke/VBD
off/IN
their/PRP$
friendship/NN
abruptly/RB
in/IN
1987/CD
,/,
because/IN
the/DT
senator/NN
refused/VBD
to/TO
press/VB
the/DT
thrift/NN
executive/NN
's/POS
case/NN
as/RB
vigorously/RB
as/IN
Mr./NNP
Keating/NNP
wanted/VBD
./.
``/``
He/PRP
became/VBD
very/RB
angry/JJ
at/IN
that/DT
,/,
left/VBD
my/PRP$
office/NN
and/CC
told/VBD
a/DT
number/NN
of/IN
people/NNS
that/IN
I/PRP
was/VBD
a/DT
wimp/NN
,/,
''/''
Sen./NNP
McCain/NNP
recalls/VBZ
./.
In/IN
July/NNP
,/,
California/NNP
newspapers/NNS
disclosed/VBD
that/IN
Mr./NNP
Keating/NNP
gave/VBD
$/$
850,000/CD
in/IN
corporate/JJ
funds/NNS
to/TO
three/CD
tax-exempt/JJ
voter/NN
registration/NN
organizations/NNS
in/IN
1987/CD
and/CC
1988/CD
at/IN
the/DT
behest/NN
of/IN
Sen./NNP
Cranston/NNP
,/,
who/WP
conceded/VBD
that/IN
soliciting/VBG
the/DT
money/NN
was/VBD
``/``
a/DT
pretty/RB
stupid/JJ
thing/NN
to/TO
do/VB
politically/RB
./.
''/''
In/IN
addition/NN
,/,
Sen./NNP
Cranston/NNP
received/VBD
$/$
47,000/CD
in/IN
campaign/NN
donations/NNS
through/IN
Mr./NNP
Keating/NNP
,/,
and/CC
the/DT
California/NNP
Democratic/NNP
party/NN
received/VBD
$/$
85,000/CD
in/IN
corporate/JJ
donations/NNS
for/IN
a/DT
1986/CD
get-out-the-vote/JJ
drive/NN
that/WDT
benefited/VBD
the/DT
senator/NN
's/POS
re-election/NN
campaign/NN
that/DT
year/NN
./.
Also/RB
in/IN
July/NNP
,/,
Ohio/NNP
newspapers/NNS
disclosed/VBD
$/$
200,000/CD
in/IN
corporate/JJ
donations/NNS
by/IN
Mr./NNP
Keating/NNP
to/TO
the/DT
National/NNP
Council/NNP
on/IN
Public/NNP
Policy/NNP
,/,
a/DT
political/JJ
committee/NN
controlled/VBN
by/IN
Sen./NNP
Glenn/NNP
./.
That/DT
was/VBD
in/IN
addition/NN
to/TO
$/$
34,000/CD
in/IN
direct/JJ
campaign/NN
donations/NNS
arranged/VBN
by/IN
Mr./NNP
Keating/NNP
to/TO
the/DT
Ohio/NNP
senator/NN
./.
Mr./NNP
Wertheimer/NNP
said/VBD
the/DT
Senate/NNP
Ethics/NNP
Committee/NNP
should/MD
hire/VB
a/DT
special/JJ
outside/JJ
counsel/NN
to/TO
conduct/VB
an/DT
investigation/NN
,/,
as/IN
was/VBD
done/VBN
in/IN
the/DT
case/NN
of/IN
former/JJ
House/NNP
Speaker/NNP
James/NNP
Wright/NNP
./.
Wilson/NNP
Abney/NNP
,/,
staff/NN
director/NN
of/IN
the/DT
ethics/NNS
panel/NN
,/,
would/MD
n't/RB
comment/VB
./.
Sen./NNP
Riegle/NNP
said/VBD
he/PRP
would/MD
cooperate/VB
with/IN
any/DT
inquiry/NN
,/,
but/CC
that/IN
his/PRP$
conduct/NN
had/VBD
been/VBN
``/``
entirely/RB
proper/JJ
./.
''/''
Sen./NNP
McCain/NNP
said/VBD
he/PRP
had/VBD
been/VBN
``/``
deeply/RB
concerned/VBN
''/''
at/IN
the/DT
time/NN
of/IN
the/DT
meeting/NN
that/IN
it/PRP
might/MD
seem/VB
to/TO
be/VB
improper/JJ
,/,
but/CC
decided/VBD
it/PRP
was/VBD
``/``
entirely/RB
appropriate/JJ
''/''
for/IN
him/PRP
to/TO
seek/VB
fair/JJ
treatment/NN
for/IN
a/DT
constituent/NN
./.
Sen./NNP
Glenn/NNP
said/VBD
he/PRP
had/VBD
already/RB
made/VBN
a/DT
complete/JJ
disclosure/NN
of/IN
his/PRP$
role/NN
in/IN
the/DT
affair/NN
and/CC
``/``
I/PRP
am/VBP
completely/RB
satisfied/VBN
to/TO
let/VB
this/DT
matter/NN
rest/NN
in/IN
the/DT
hands/NNS
of/IN
the/DT
Senate/NNP
Ethics/NNP
Committee/NNP
./.
''/''
Sen./NNP
DeConcini/NNP
said/VBD
,/,
``/``
When/WRB
all/DT
is/VBZ
said/VBD
and/CC
done/VBN
,/,
I/PRP
expect/VBP
to/TO
be/VB
fully/RB
exonerated/VBN
./.
''/''
Sen./NNP
Cranston/NNP
,/,
who/WP
had/VBD
already/RB
volunteered/VBN
his/PRP$
help/NN
to/TO
the/DT
Federal/NNP
Bureau/NNP
of/IN
Investigation/NNP
in/IN
any/DT
investigation/NN
of/IN
Mr./NNP
Keating/NNP
,/,
portrayed/VBD
his/PRP$
role/NN
in/IN
1987/CD
as/IN
prodding/VBG
regulators/NNS
to/TO
act/VB
./.
``/``
Why/WRB
did/VBD
n't/RB
the/DT
Bank/NNP
Board/NNP
act/VB
sooner/RBR
?/.
''/''
he/PRP
said/VBD
./.
``/``
That/DT
is/VBZ
what/WP
Common/NNP
Cause/NNP
should/MD
ask/VB
be/VB
investigated/VBN
./.
''/''
Trinity/NNP
Industries/NNPS
Inc./NNP
said/VBD
it/PRP
reached/VBD
a/DT
preliminary/JJ
agreement/NN
to/TO
manufacture/VB
1,000/CD
coal/NN
rail/NN
cars/NNS
for/IN
Norfolk/NNP
Southern/NNP
Corp/NNP
./.
Trinity/NNP
estimated/VBD
the/DT
value/NN
of/IN
the/DT
pact/NN
at/IN
more/RBR
than/IN
$/$
40/CD
million/CD
./.
Trinity/NNP
said/VBD
it/PRP
plans/VBZ
to/TO
begin/VB
delivery/NN
of/IN
the/DT
rail/NN
cars/NNS
in/IN
the/DT
first/JJ
quarter/NN
of/IN
1990/CD
./.
It/PRP
said/VBD
the/DT
1,000/CD
rail/NN
cars/NNS
are/VBP
in/IN
addition/NN
to/TO
the/DT
1,450/CD
coal/NN
rail/NN
cars/NNS
presently/RB
being/VBG
produced/VBN
for/IN
Norfolk/NNP
Southern/NNP
,/,
a/DT
Norfolk/NNP
,/,
Va.-based/JJ
railroad/NN
concern/NN
./.
When/WRB
China/NNP
opened/VBD
its/PRP$
doors/NNS
to/TO
foreign/JJ
investors/NNS
in/IN
1979/CD
,/,
toy/JJ
makers/NNS
from/IN
Hong/NNP
Kong/NNP
were/VBD
among/IN
the/DT
first/JJ
to/TO
march/VB
in/IN
./.
Today/NN
,/,
with/IN
about/IN
75/CD
%/NN
of/IN
the/DT
companies/NNS
'/POS
products/NNS
being/VBG
made/VBN
in/IN
China/NNP
,/,
the/DT
chairman/NN
of/IN
the/DT
Hong/NNP
Kong/NNP
Toys/NNPS
Council/NNP
,/,
Dennis/NNP
Ting/NNP
,/,
has/VBZ
suggested/VBN
a/DT
new/JJ
sourcing/VBG
label/NN
:/:
``/``
Made/VBN
in/IN
China/NNP
by/IN
Hong/NNP
Kong/NNP
Companies/NNPS
./.
''/''
The/DT
toy/NN
makers/NNS
were/VBD
pushed/VBN
across/IN
the/DT
border/NN
by/IN
rising/VBG
labor/NN
and/CC
land/NN
costs/NNS
in/IN
the/DT
British/JJ
colony/NN
./.
But/CC
in/IN
the/DT
wake/NN
of/IN
the/DT
shootings/NNS
in/IN
Beijing/NNP
on/IN
June/NNP
4/CD
,/,
the/DT
Hong/NNP
Kong/NNP
toy/NN
industry/NN
is/VBZ
worrying/VBG
about/IN
its/PRP$
strong/JJ
dependence/NN
on/IN
China/NNP
./.
Although/IN
the/DT
manufacturers/NNS
stress/VBP
that/IN
production/NN
has/VBZ
n't/RB
been/VBN
affected/VBN
by/IN
China/NNP
's/POS
political/JJ
turmoil/NN
,/,
they/PRP
are/VBP
looking/VBG
for/IN
additional/JJ
sites/NNS
./.
The/DT
toy/NN
makers/NNS
,/,
and/CC
their/PRP$
foreign/JJ
buyers/NNS
,/,
cite/VBP
uncertainty/NN
about/IN
China/NNP
's/POS
economic/JJ
and/CC
political/JJ
policies/NNS
./.
``/``
Nobody/NN
wants/VBZ
to/TO
have/VB
all/PDT
his/PRP$
eggs/NNS
in/IN
one/CD
basket/NN
,/,
''/''
says/VBZ
David/NNP
Yeh/NNP
,/,
chairman/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
International/NNP
Matchbox/NNP
Group/NNP
Ltd/NNP
./.
Indeed/RB
,/,
Matchbox/NNP
and/CC
other/JJ
leading/VBG
Hong/NNP
Kong/NNP
toy/NN
makers/NNS
were/VBD
setting/VBG
up/IN
factories/NNS
in/IN
Southeast/NNP
Asia/NNP
,/,
especially/RB
in/IN
Thailand/NNP
,/,
long/RB
before/IN
the/DT
massacre/NN
./.
Their/PRP$
steps/NNS
were/VBD
partly/RB
prompted/VBN
by/IN
concern/NN
over/IN
a/DT
deterioration/NN
of/IN
business/NN
conditions/NNS
in/IN
southern/JJ
China/NNP
./.
By/IN
diversifying/VBG
supply/NN
sources/NNS
,/,
the/DT
toy/JJ
makers/NNS
do/VBP
n't/RB
intend/VB
to/TO
withdraw/VB
from/IN
China/NNP
,/,
manufacturers/NNS
and/CC
foreign/JJ
buyers/NNS
say/VBP
./.
It/PRP
would/MD
n't/RB
be/VB
easy/JJ
to/TO
duplicate/VB
quickly/RB
the/DT
manufacturing/VBG
capacity/NN
built/VBN
up/IN
in/IN
southern/JJ
China/NNP
during/IN
the/DT
past/JJ
decade/NN
./.
A/DT
supply/NN
of/IN
cheap/JJ
labor/NN
and/CC
the/DT
access/NN
to/TO
Hong/NNP
Kong/NNP
's/POS
port/NN
,/,
airport/NN
,/,
banks/NNS
and/CC
support/NN
industries/NNS
,/,
such/JJ
as/IN
printing/NN
companies/NNS
,/,
have/VBP
made/VBN
China/NNP
's/POS
Guangdong/NNP
province/NN
a/DT
premier/NN
manufacturing/NN
site/NN
./.
``/``
South/NNP
China/NNP
is/VBZ
the/DT
most/RBS
competitive/JJ
source/NN
of/IN
toys/NNS
in/IN
the/DT
world/NN
,/,
''/''
says/VBZ
Henry/NNP
Hu/NNP
,/,
executive/JJ
director/NN
of/IN
Wah/NNP
Shing/NNP
Toys/NNPS
Consolidated/NNP
Ltd/NNP
./.
Hong/NNP
Kong/NNP
trade/NN
figures/NNS
illustrate/VBP
the/DT
toy/JJ
makers/NNS
'/POS
reliance/NN
on/IN
factories/NNS
across/IN
the/DT
border/NN
./.
In/IN
1988/CD
,/,
exports/NNS
of/IN
domestically/RB
produced/VBN
toys/NNS
and/CC
games/NNS
fell/VBD
19/CD
%/NN
from/IN
1987/CD
,/,
to/TO
HK$/$
10.05/CD
billion/CD
US$/$
1.29/CD
billion/CD
But/CC
re-exports/NNS
,/,
mainly/RB
from/IN
China/NNP
,/,
jumped/VBD
75/CD
%/NN
,/,
to/TO
HK$/$
15.92/CD
billion/CD
./.
In/IN
1989/CD
's/POS
first/JJ
seven/CD
months/NNS
,/,
domestic/JJ
exports/NNS
fell/VBD
29/CD
%/NN
,/,
to/TO
HK$/$
3.87/CD
billion/CD
,/,
while/IN
re-exports/NNS
rose/VBD
56/CD
%/NN
,/,
to/TO
HK$/$
11.28/CD
billion/CD
./.
Manufacturers/NNS
say/VBP
there/EX
is/VBZ
no/DT
immediate/JJ
substitute/NN
for/IN
southern/JJ
China/NNP
,/,
where/WRB
an/DT
estimated/VBN
120,000/CD
people/NNS
are/VBP
employed/VBN
by/IN
the/DT
toy/NN
industry/NN
./.
``/``
For/IN
the/DT
next/JJ
few/JJ
years/NNS
,/,
like/IN
it/PRP
or/CC
not/RB
,/,
China/NNP
is/VBZ
going/VBG
to/TO
be/VB
the/DT
main/JJ
supplier/NN
,/,
''/''
says/VBZ
Edmund/NNP
Young/NNP
,/,
vice/NN
president/NN
of/IN
Perfecta/NNP
Enterprises/NNPS
Ltd./NNP
,/,
one/CD
of/IN
the/DT
first/JJ
big/JJ
Hong/NNP
Kong/NNP
toy/NN
makers/NNS
to/TO
move/VB
across/IN
the/DT
border/NN
./.
In/IN
the/DT
meantime/NN
,/,
as/IN
manufacturers/NNS
and/CC
buyers/NNS
seek/VBP
new/JJ
sites/NNS
,/,
they/PRP
are/VBP
focusing/VBG
mainly/RB
on/IN
Southeast/NNP
Asia/NNP
./.
Several/JJ
big/JJ
companies/NNS
have/VBP
established/VBN
manufacturing/VBG
joint/JJ
ventures/NNS
in/IN
Thailand/NNP
,/,
including/VBG
Matchbox/NNP
,/,
Wah/NNP
Shing/NNP
and/CC
Kader/NNP
Industrial/NNP
Co./NNP
,/,
the/DT
toy/NN
manufacturer/NN
headed/VBN
by/IN
Mr./NNP
Ting/NNP
./.
Malaysia/NNP
,/,
the/DT
Philippines/NNP
and/CC
Indonesia/NNP
also/RB
are/VBP
being/VBG
studied/VBN
./.
With/IN
the/DT
European/NNP
Community/NNP
set/VBD
to/TO
remove/VB
its/PRP$
internal/JJ
trade/NN
barriers/NNS
in/IN
1992/CD
,/,
several/JJ
Hong/NNP
Kong/NNP
companies/NNS
are/VBP
beginning/VBG
to/TO
consider/VB
Spain/NNP
,/,
Portugal/NNP
and/CC
Greece/NNP
as/IN
possible/JJ
manufacturing/VBG
sites/NNS
./.
Worries/NNS
about/IN
China/NNP
came/VBD
just/RB
as/IN
Hong/NNP
Kong/NNP
's/POS
toy/NN
industry/NN
was/VBD
recovering/VBG
from/IN
a/DT
1987/CD
sales/NNS
slump/NN
and/CC
bankruptcy/NN
filings/NNS
by/IN
two/CD
major/JJ
U.S./NNP
companies/NNS
,/,
Worlds/NNPS
of/IN
Wonder/NNP
Inc./NNP
and/CC
Coleco/NNP
Industries/NNPS
Inc/NNP
./.
Hong/NNP
Kong/NNP
manufacturers/NNS
say/VBP
large/JJ
debt/NN
writeoffs/NNS
and/CC
other/JJ
financial/JJ
problems/NNS
resulting/VBG
from/IN
the/DT
1987/CD
difficulties/NNS
chastened/VBD
the/DT
local/JJ
industry/NN
,/,
causing/VBG
it/PRP
to/TO
tighten/VB
credit/NN
policies/NNS
and/CC
financial/JJ
management/NN
./.
The/DT
industry/NN
regards/VBZ
last/JJ
year/NN
and/CC
this/DT
year/NN
as/IN
a/DT
period/NN
of/IN
recovery/NN
that/WDT
will/MD
lead/VB
to/TO
improved/VBN
results/NNS
./.
Still/RB
,/,
they/PRP
long/VBP
for/IN
a/DT
``/``
mega-hit/JJ
''/''
toy/NN
to/TO
excite/VB
retail/JJ
sales/NNS
in/IN
the/DT
U.S./NNP
,/,
Hong/NNP
Kong/NNP
's/POS
biggest/JJS
market/NN
for/IN
toys/NNS
and/CC
games/NNS
./.
The/DT
closest/JJS
thing/NN
the/DT
colony/NN
's/POS
companies/NNS
have/VBP
to/TO
a/DT
U.S./NNP
mega-hit/NN
this/DT
year/NN
is/VBZ
the/DT
Teenage/NNP
Mutant/NNP
Ninja/NNP
Turtles/NNPS
series/NN
of/IN
action/NN
figures/NNS
manufactured/VBN
by/IN
Playmates/NNPS
Holdings/NNP
Ltd/NNP
./.
Introduced/VBN
in/IN
mid-1988/CD
,/,
the/DT
15-centimeter-tall/JJ
plastic/NN
turtles/NNS
are/VBP
based/VBN
on/IN
an/DT
American/JJ
comic/JJ
book/NN
and/CC
television/NN
series/NN
./.
Paul/NNP
Kwan/NNP
,/,
managing/VBG
director/NN
of/IN
Playmates/NNPS
,/,
says/VBZ
10/CD
million/CD
Ninja/NNP
Turtles/NNPS
have/VBP
been/VBN
sold/VBN
,/,
placing/VBG
the/DT
reptilian/JJ
warriors/NNS
among/IN
the/DT
10/CD
biggest-selling/JJ
toys/NNS
in/IN
the/DT
U.S/NNP
./.
Should/MD
sales/NNS
continue/VB
to/TO
be/VB
strong/JJ
through/IN
the/DT
Christmas/NNP
season/NN
,/,
which/WDT
accounts/VBZ
for/IN
about/IN
60/CD
%/NN
of/IN
U.S./NNP
retail/JJ
toy/NN
sales/NNS
,/,
Mr./NNP
Kwan/NNP
said/VBD
the/DT
Ninja/NNP
Turtles/NNPS
could/MD
make/VB
1989/CD
a/DT
record/NN
sales/NNS
year/NN
for/IN
Playmates/NNPS
./.
Other/JJ
Hong/NNP
Kong/NNP
manufacturers/NNS
expect/VBP
their/PRP$
results/NNS
to/TO
improve/VB
only/RB
slightly/RB
this/DT
year/NN
from/IN
1988/CD
./.
Besides/IN
the/DT
lack/NN
of/IN
a/DT
fast-selling/JJ
product/NN
,/,
they/PRP
cite/VBP
the/DT
continued/VBN
dominance/NN
of/IN
the/DT
U.S./NNP
market/NN
by/IN
Nintendo/NNP
Entertainment/NNP
System/NNP
,/,
an/DT
expensive/JJ
video/NN
game/NN
made/VBN
by/IN
Nintendo/NNP
Co./NNP
of/IN
Japan/NNP
./.
Nintendo/NNP
buyers/NNS
have/VBP
little/JJ
money/NN
left/VBN
to/TO
spend/VB
on/IN
other/JJ
products/NNS
./.
Many/JJ
of/IN
the/DT
toy/JJ
makers/NNS
'/POS
problems/NNS
started/VBD
well/RB
before/IN
June/NNP
4/CD
as/IN
a/DT
result/NN
of/IN
overstrained/VBN
infrastructure/NN
and/CC
Beijing/NNP
's/POS
austerity/NN
programs/NNS
launched/VBN
late/JJ
last/JJ
year/NN
./.
Toy/NN
makers/NNS
complain/VBP
that/DT
electricity/NN
in/IN
Guangdong/NNP
has/VBZ
been/VBN
provided/VBN
only/RB
three/CD
days/NNS
a/DT
week/NN
in/IN
recent/JJ
months/NNS
,/,
down/IN
from/IN
five/CD
days/NNS
a/DT
week/NN
,/,
as/IN
the/DT
province/NN
's/POS
rapid/JJ
industrialization/NN
has/VBZ
outstripped/VBN
its/PRP$
generating/NN
capacity/NN
./.
Manufacturers/NNS
are/VBP
upgrading/VBG
standby/JJ
power/NN
plants/NNS
./.
Bank/NN
credit/NN
for/IN
China/NNP
investments/NNS
all/DT
but/CC
dried/VBD
up/IN
following/VBG
June/NNP
4/CD
./.
Also/RB
,/,
concern/NN
exists/VBZ
that/IN
the/DT
harder-line/JJ
Beijing/NNP
leadership/NN
will/MD
tighten/VB
its/PRP$
control/NN
of/IN
Guangdong/NNP
,/,
which/WDT
has/VBZ
been/VBN
the/DT
main/JJ
laboratory/NN
for/IN
the/DT
open-door/NN
policy/NN
and/CC
economic/JJ
reforms/NNS
./.
But/CC
,/,
toy/JJ
manufacturers/NNS
and/CC
other/JJ
industrialists/NNS
say/VBP
Beijing/NNP
will/MD
be/VB
restrained/VBN
from/IN
tightening/VBG
controls/NNS
on/IN
export-oriented/JJ
southern/JJ
China/NNP
./.
They/PRP
say/VBP
China/NNP
's/POS
trade/NN
deficit/NN
is/VBZ
widening/VBG
and/CC
the/DT
country/NN
is/VBZ
too/RB
short/JJ
of/IN
foreign/JJ
exchange/NN
for/IN
it/PRP
to/TO
hamper/VB
production/NN
in/IN
Guangdong/NNP
./.
``/``
The/DT
Chinese/JJ
leaders/NNS
have/VBP
to/TO
decide/VB
whether/IN
they/PRP
want/VBP
control/NN
or/CC
whether/IN
the/DT
want/NN
exports/NNS
,/,
''/''
says/VBZ
Mr./NNP
Kwan/NNP
of/IN
Playmates/NNPS
./.
The/DT
Bush/NNP
administration/NN
,/,
urging/VBG
the/DT
Supreme/NNP
Court/NNP
to/TO
give/VB
states/NNS
more/JJR
leeway/NN
to/TO
restrict/VB
abortions/NNS
,/,
said/VBD
minors/NNS
have/VBP
n't/RB
any/DT
right/NN
to/TO
abortion/NN
without/IN
the/DT
consent/NN
of/IN
their/PRP$
parents/NNS
./.
Solicitor/NNP
General/NNP
Kenneth/NNP
Starr/NNP
argued/VBD
that/IN
the/DT
1973/CD
Supreme/NNP
Court/NNP
decision/NN
,/,
Roe/NNP
vs./CC
Wade/NNP
,/,
recognizing/VBG
a/DT
constitutional/JJ
right/NN
to/TO
abortion/NN
,/,
was/VBD
incorrect/JJ
./.
He/PRP
also/RB
argued/VBD
that/IN
the/DT
high/JJ
court/NN
was/VBD
wrong/JJ
in/IN
1976/CD
to/TO
rule/VB
that/IN
minors/NNS
have/VBP
a/DT
right/NN
to/TO
abortion/NN
that/WDT
ca/MD
n't/RB
be/VB
absolutely/RB
vetoed/VBN
by/IN
their/PRP$
parents/NNS
./.
The/DT
administration/NN
's/POS
position/NN
was/VBD
outlined/VBN
in/IN
a/DT
friend-of-the-court/JJ
brief/NN
filed/VBN
in/IN
one/CD
of/IN
three/CD
abortion/NN
cases/VBZ
the/DT
Supreme/NNP
Court/NNP
will/MD
hear/VB
argued/VBN
and/CC
will/MD
decide/VB
this/DT
term/NN
./.
The/DT
administration/NN
filed/VBD
the/DT
brief/NN
in/IN
an/DT
appeal/NN
involving/VBG
a/DT
Minnesota/NNP
law/NN
that/WDT
requires/VBZ
that/IN
both/DT
parents/NNS
of/IN
a/DT
minor/NN
be/VB
notified/VBN
before/IN
she/PRP
may/MD
have/VB
an/DT
abortion/NN
./.
The/DT
administration/NN
urged/VBD
the/DT
justices/NNS
to/TO
adopt/VB
a/DT
legal/JJ
standard/NN
suggested/VBN
by/IN
Chief/NNP
Justice/NNP
William/NNP
Rehnquist/NNP
last/JJ
July/NNP
when/WRB
the/DT
high/JJ
court/NN
upheld/VBD
Missouri/NNP
's/POS
abortion/NN
restrictions/NNS
./.
Under/IN
that/DT
standard/NN
,/,
which/WDT
garnered/VBD
the/DT
votes/NNS
of/IN
only/RB
three/CD
of/IN
the/DT
nine/CD
justices/NNS
,/,
a/DT
state/NN
restriction/NN
of/IN
abortion/NN
is/VBZ
constitutional/JJ
if/IN
the/DT
state/NN
has/VBZ
a/DT
``/``
reasonable/JJ
''/''
justification/NN
for/IN
adopting/VBG
it/PRP
./.
That/DT
is/VBZ
a/DT
much/RB
easier/JJR
standard/NN
for/IN
a/DT
state/NN
to/TO
satisfy/VB
than/IN
the/DT
Supreme/NNP
Court/NNP
's/POS
test/NN
since/IN
1973/CD
,/,
which/WDT
requires/VBZ
a/DT
state/NN
to/TO
have/VB
a/DT
``/``
compelling/JJ
''/''
reason/NN
for/IN
restricting/VBG
abortion/NN
./.
On/IN
the/DT
provisions/NNS
of/IN
the/DT
Minnesota/NNP
law/NN
,/,
the/DT
Bush/NNP
administration/NN
said/VBD
that/IN
requiring/VBG
that/IN
both/DT
parents/NNS
be/VB
notified/VBN
is/VBZ
a/DT
reasonable/JJ
regulation/NN
,/,
and/CC
that/IN
there/EX
is/VBZ
no/DT
need/NN
to/TO
have/VB
an/DT
alternative/NN
that/WDT
allows/VBZ
minors/NNS
to/TO
go/VB
to/TO
court/NN
for/IN
a/DT
judge/NN
's/POS
permission/NN
instead/RB
./.
The/DT
case/NN
,/,
Hodgson/NNP
vs./CC
Minnesota/NNP
,/,
will/MD
be/VB
argued/VBN
Nov./NNP
29/CD
./.
Aluminum/NNP
Co./NNP
of/IN
America/NNP
,/,
hit/VBD
hard/RB
by/IN
the/DT
strength/NN
of/IN
the/DT
dollar/NN
overseas/NN
,/,
said/VBD
net/JJ
income/NN
for/IN
the/DT
third/JJ
quarter/NN
dropped/VBD
3.2/CD
%/NN
to/TO
$/$
219/CD
million/CD
,/,
or/CC
$/$
2.46/CD
a/DT
share/NN
./.
The/DT
nation/NN
's/POS
No./NN
1/CD
aluminum/NN
maker/NN
earned/VBD
$/$
226.3/CD
million/CD
,/,
or/CC
$/$
2.56/CD
a/DT
share/NN
,/,
a/DT
year/NN
earlier/RBR
./.
Revenue/NN
rose/VBD
11/CD
%/NN
to/TO
$/$
2.83/CD
billion/CD
from/IN
$/$
2.56/CD
billion/CD
./.
Analysts/NNS
,/,
who/WP
were/VBD
expecting/VBG
Alcoa/NNP
to/TO
post/VB
around/IN
$/$
2.70/CD
to/TO
$/$
3/CD
a/DT
share/NN
,/,
were/VBD
surprised/VBN
at/IN
the/DT
lackluster/NN
third-quarter/NN
results/NNS
./.
``/``
It/PRP
's/VBZ
disappointing/JJ
,/,
''/''
said/VBD
William/NNP
Siedenburg/NNP
,/,
an/DT
analyst/NN
with/IN
Smith/NNP
Barney/NNP
,/,
Harris/NNP
Upham/NNP
&/CC
Co/NNP
./.
Much/RB
of/IN
the/DT
earnings/NNS
decline/NN
was/VBD
led/VBN
by/IN
currency-exchange/JJ
rate/NN
adjustments/NNS
,/,
which/WDT
affected/VBD
the/DT
bottom/NN
line/NN
by/IN
$/$
15.3/CD
million/CD
,/,
or/CC
17/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
$/$
3.6/CD
million/CD
,/,
or/CC
four/CD
cents/NNS
a/DT
share/NN
,/,
the/DT
previous/JJ
year/NN
./.
Lower/JJR
prices/NNS
for/IN
aluminum/NN
ingots/NNS
and/CC
certain/JJ
alloy/NN
products/NNS
and/CC
a/DT
shift/NN
in/IN
the/DT
product/NN
mix/NN
also/RB
contributed/VBD
to/TO
lower/JJR
earnings/NNS
,/,
the/DT
company/NN
said/VBD
./.
``/``
In/IN
addition/NN
,/,
costs/NNS
were/VBD
higher/JJR
partly/RB
due/JJ
to/TO
scheduled/VBN
plant/NN
outages/NNS
for/IN
modernization/NN
work/NN
,/,
''/''
the/DT
company/NN
said/VBD
./.
Excluding/VBG
the/DT
higher/JJR
tax/NN
rate/NN
,/,
which/WDT
rose/VBD
two/CD
percentage/NN
points/NNS
to/TO
38/CD
%/NN
,/,
and/CC
the/DT
negative/JJ
exchange/NN
rate/NN
adjustment/NN
,/,
the/DT
company/NN
would/MD
have/VB
met/VBN
analysts/NNS
'/POS
expectations/NNS
,/,
said/VBD
R./NNP
Wayne/NNP
Atwell/NNP
,/,
an/DT
analyst/NN
with/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
./.
Noting/VBG
that/IN
the/DT
third/JJ
quarter/NN
is/VBZ
usually/RB
the/DT
aluminum/NN
industry/NN
's/VBZ
slowest/JJS
,/,
Mr./NNP
Atwell/NNP
added/VBD
,/,
``/``
the/DT
third/JJ
quarter/NN
is/VBZ
never/RB
a/DT
bang/NN
up/IN
period/NN
for/IN
them/PRP
anyway/RB
./.
''/''
Nevertheless/RB
,/,
the/DT
company/NN
said/VBD
shipments/NNS
were/VBD
up/IN
slightly/RB
to/TO
679,000/CD
metric/JJ
tons/NNS
from/IN
671,000/CD
,/,
buffing/VBG
the/DT
impact/NN
of/IN
the/DT
unexpected/JJ
earning/NN
decline/NN
./.
The/DT
results/NNS
were/VBD
announced/VBN
after/IN
the/DT
stock/NN
market/NN
closed/VBD
./.
In/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
Friday/NNP
,/,
Alcoa/NNP
closed/VBD
at/IN
$/$
72/CD
a/DT
share/NN
,/,
down/IN
$/$
4.75/CD
,/,
in/IN
a/DT
sharply/RB
lower/JJR
market/NN
./.
For/IN
20/CD
years/NNS
,/,
federal/JJ
rules/NNS
have/VBP
barred/VBN
the/DT
three/CD
major/JJ
television/NN
networks/NNS
from/IN
sharing/VBG
in/IN
one/CD
of/IN
the/DT
most/RBS
lucrative/JJ
and/CC
fastest-growing/JJ
parts/NNS
of/IN
the/DT
television/NN
business/NN
./.
And/CC
for/IN
six/CD
years/NNS
,/,
NBC/NNP
,/,
ABC/NNP
and/CC
CBS/NNP
have/VBP
negotiated/VBN
with/IN
Hollywood/NNP
studios/NNS
in/IN
a/DT
futile/JJ
attempt/NN
to/TO
change/VB
that/DT
./.
But/CC
with/IN
foreign/JJ
companies/NNS
snapping/VBG
up/IN
U.S./NNP
movie/NN
studios/NNS
,/,
the/DT
networks/NNS
are/VBP
pressing/VBG
their/PRP$
fight/NN
harder/RBR
than/IN
ever/RB
./.
They/PRP
hope/VBP
the/DT
foreign/JJ
deals/NNS
will/MD
divide/VB
the/DT
Hollywood/NNP
opposition/NN
and/CC
prod/VB
Congress/NNP
to/TO
push/VB
for/IN
ending/VBG
federal/JJ
rules/NNS
that/WDT
prohibit/VBP
the/DT
networks/NNS
from/IN
grabbing/VBG
a/DT
piece/NN
of/IN
rerun/NN
sales/NNS
and/CC
owning/VBG
part/NN
of/IN
the/DT
shows/NNS
they/PRP
put/VBP
on/IN
the/DT
air/NN
./.
Even/RB
network/NN
executives/NNS
,/,
however/RB
,/,
admit/VBP
privately/RB
that/DT
victory/NN
--/:
either/CC
in/IN
Congress/NNP
or/CC
in/IN
talks/NNS
with/IN
the/DT
studios/NNS
--/:
is/VBZ
highly/RB
doubtful/JJ
any/DT
time/NN
soon/RB
./.
And/CC
so/IN
the/DT
networks/NNS
also/RB
are/VBP
pushing/VBG
for/IN
new/JJ
ways/NNS
to/TO
sidestep/VB
the/DT
``/``
fin-syn/JJ
''/''
provisions/NNS
,/,
known/VBN
formally/RB
as/IN
the/DT
Financial/NNP
Interest/NNP
and/CC
Syndication/NNP
Rules/NNPS
./.
That/DT
became/VBD
clear/JJ
last/JJ
week/NN
with/IN
the/DT
disclosure/NN
that/IN
National/NNP
Broadcasting/NNP
Co./NNP
,/,
backed/VBN
by/IN
the/DT
deep/JJ
pockets/NNS
of/IN
parent/NN
General/NNP
Electric/NNP
Co./NNP
,/,
had/VBD
tried/VBN
to/TO
help/VB
fund/NN
Qintex/NNP
Australia/NNP
Ltd./NNP
's/POS
now-scuttled/JJ
$/$
1.5/CD
billion/CD
bid/NN
for/IN
MGM\/UA/NNP
Communications/NNPS
Co/NNP
./.
NBC/NNP
's/POS
interest/NN
may/MD
revive/VB
the/DT
deal/NN
,/,
which/WDT
MGM\/UA/NNP
killed/VBD
last/JJ
week/NN
when/WRB
the/DT
Australian/JJ
concern/NN
had/VBD
trouble/NN
raising/VBG
cash/NN
./.
Even/RB
if/IN
that/DT
deal/NN
is/VBZ
n't/RB
revived/VBN
,/,
NBC/NNP
hopes/VBZ
to/TO
find/VB
another/DT
./.
``/``
Our/PRP$
doors/NNS
are/VBP
open/JJ
,/,
''/''
an/DT
NBC/NNP
spokesman/NN
says/VBZ
./.
NBC/NNP
may/MD
yet/RB
find/VB
a/DT
way/NN
to/TO
take/VB
a/DT
passive/JJ
,/,
minority/NN
interest/NN
in/IN
a/DT
program-maker/NN
without/IN
violating/VBG
the/DT
rules/NNS
./.
And/CC
any/DT
NBC/NNP
effort/NN
could/MD
prompt/VB
CBS/NNP
Inc./NNP
and/CC
ABC/NNP
's/POS
parent/NN
,/,
Capital/NNP
Cities\/ABC/NNP
Inc./NNP
,/,
to/TO
look/VB
for/IN
ways/NNS
of/IN
skirting/VBG
the/DT
fin-syn/JJ
regulations/NNS
./.
But/CC
the/DT
networks/NNS
'/POS
push/NN
may/MD
only/RB
aggravate/VB
an/DT
increasingly/RB
bitter/JJ
rift/NN
between/IN
them/PRP
and/CC
Hollywood/NNP
studios/NNS
./.
Both/DT
sides/NNS
are/VBP
to/TO
sit/VB
down/IN
next/JJ
month/NN
for/IN
yet/RB
another/DT
meeting/NN
on/IN
how/WRB
they/PRP
might/MD
agree/VB
on/IN
reducing/VBG
fin-syn/JJ
restraints/NNS
./.
Few/JJ
people/NNS
privy/JJ
to/TO
the/DT
talks/NNS
expect/VBP
the/DT
studios/NNS
to/TO
budge/VB
./.
The/DT
networks/NNS
still/RB
are/VBP
``/``
uninhibited/JJ
in/IN
their/PRP$
authority/NN
''/''
over/IN
what/WDT
shows/NNS
get/VBP
on/IN
the/DT
air/NN
,/,
charges/VBZ
Motion/NNP
Picture/NNP
Association/NNP
President/NNP
Jack/NNP
Valenti/NNP
,/,
the/DT
most/RBS
vociferous/JJ
opponent/NN
of/IN
rescinding/VBG
the/DT
rules/NNS
./.
Studios/NNS
are/VBP
``/``
powerless/JJ
''/''
to/TO
get/VB
shows/NNS
in/IN
prime-time/JJ
lineups/NNS
and/CC
keep/VB
them/PRP
there/RB
long/JJ
enough/RB
to/TO
go/VB
into/IN
lucrative/JJ
rerun/NN
sales/NNS
,/,
he/PRP
contends/VBZ
./.
And/CC
that/DT
's/VBZ
why/WRB
the/DT
rules/NNS
,/,
for/IN
the/DT
most/JJS
part/NN
,/,
must/MD
stay/VB
in/IN
place/NN
,/,
he/PRP
says/VBZ
./.
Studio/NN
executives/NNS
in/IN
on/IN
the/DT
talks/NNS
-/:
including/JJ
officials/NNS
at/IN
Paramount/NNP
Communications/NNPS
Inc./NNP
,/,
Fries/NNP
Entertainment/NNP
Inc./NNP
,/,
Warner/NNP
Communications/NNPS
Inc./NNP
and/CC
MCA/NNP
Inc./NNP
--/:
declined/VBD
to/TO
be/VB
interviewed/VBN
./.
But/CC
Mr./NNP
Valenti/NNP
,/,
who/WP
represents/VBZ
the/DT
studios/NNS
,/,
asserts/VBZ
:/:
``/``
The/DT
whole/JJ
production/NN
industry/NN
,/,
to/TO
a/DT
man/NN
,/,
is/VBZ
on/IN
the/DT
side/NN
of/IN
preserving/VBG
''/''
the/DT
rules/NNS
./.
Such/JJ
proclamations/NNS
leave/VBP
network/NN
officials/NNS
all/PDT
the/DT
more/RBR
doubtful/JJ
that/IN
the/DT
studios/NNS
will/MD
bend/VB
./.
``/``
They/PRP
do/VBP
n't/RB
seem/VB
to/TO
have/VB
an/DT
incentive/NN
to/TO
negotiate/VB
,/,
''/''
says/VBZ
one/CD
network/NN
executive/NN
./.
``/``
And/CC
there/EX
's/VBZ
no/DT
indication/NN
that/IN
Washington/NNP
is/VBZ
prepared/VBN
to/TO
address/VB
the/DT
rules/NNS
./.
That/DT
's/VBZ
the/DT
problem/NN
,/,
is/VBZ
n't/RB
it/PRP
?/.
''/''
Indeed/RB
it/PRP
is/VBZ
./.
Congress/NNP
has/VBZ
said/VBN
repeatedly/RB
it/PRP
wants/VBZ
no/DT
part/NN
of/IN
the/DT
mess/NN
,/,
urging/VBG
the/DT
studios/NNS
and/CC
the/DT
networks/NNS
,/,
which/WDT
license/VBP
rights/NNS
to/TO
air/NN
shows/NNS
made/VBN
by/IN
the/DT
studios/NNS
,/,
to/TO
work/VB
out/IN
their/PRP$
own/JJ
compromise/NN
./.
But/CC
recent/JJ
developments/NNS
have/VBP
made/VBN
the/DT
networks/NNS
--/:
and/CC
NBC/NNP
President/NNP
Robert/NNP
Wright/NNP
,/,
in/IN
particular/JJ
--/:
ever/RB
more/RBR
adamant/JJ
that/IN
the/DT
networks/NNS
must/MD
be/VB
unshackled/JJ
to/TO
survive/VB
./.
The/DT
latest/JJS
provocation/NN
:/:
Sony/NNP
Corp./NNP
's/POS
plan/NN
to/TO
acquire/VB
Columbia/NNP
Pictures/NNPS
Entertainment/NNP
Inc./NNP
for/IN
$/$
3.4/CD
billion/CD
,/,
and/CC
to/TO
buy/VB
independent/JJ
producer/NN
Guber/NNP
Peters/NNP
Entertainment/NNP
Co./NNP
for/IN
$/$
200/CD
million/CD
./.
``/``
I/PRP
wonder/VBP
what/WP
Walter/NNP
Cronkite/NNP
will/MD
think/VB
of/IN
the/DT
Sony\/Columbia/NNP
Broadcast/NNP
System/NNP
Trinitron/NNP
Evening/NNP
News/NNP
with/IN
Dan/NNP
Rather/NNP
broadcast/VBN
exclusively/RB
from/IN
Tokyo/NNP
,/,
''/''
wrote/VBD
J.B./NNP
Holston/NNP
,/,
an/DT
NBC/NNP
vice/NN
president/NN
,/,
in/IN
a/DT
commentary/NN
in/IN
last/JJ
week/NN
's/POS
issue/NN
of/IN
Broadcasting/VBG
magazine/NN
./.
In/IN
his/PRP$
article/NN
,/,
Mr./NNP
Holston/NNP
,/,
who/WP
was/VBD
in/IN
Europe/NNP
last/JJ
week/NN
and/CC
unavailable/JJ
,/,
complained/VBD
that/IN
the/DT
``/``
archaic/JJ
restraints/NNS
''/''
in/IN
fin-syn/JJ
rules/NNS
have/VBP
``/``
contributed/VBN
directly/RB
to/TO
the/DT
acquisition/NN
of/IN
the/DT
studios/NNS
by/IN
non-U.S./JJ
enterprises/NNS
./.
''/''
(/(
He/PRP
did/VBD
n't/RB
mention/VB
that/IN
NBC/NNP
,/,
in/IN
the/DT
meantime/NN
,/,
was/VBD
hoping/VBG
to/TO
assist/VB
Australia/NNP
's/POS
Qintex/NNP
in/IN
buying/NN
An/DT
NBC/NNP
spokesman/NN
counters/NNS
that/IN
Mr./NNP
Holston/NNP
's/POS
lament/NN
was/VBD
``/``
entirely/RB
consistent/JJ
''/''
with/IN
NBC/NNP
plans/NNS
because/IN
the/DT
U.S./NNP
rules/NNS
would/MD
limit/VB
NBC/NNP
's/POS
involvement/NN
in/IN
the/DT
Qintex/NNP
deal/NN
so/RB
severely/RB
as/IN
to/TO
be/VB
``/``
light/JJ
years/NNS
away/RB
from/IN
the/DT
type/NN
of/IN
unrestrained/JJ
deals/NNS
available/JJ
to/TO
Sony/NNP
--/:
and/CC
everyone/NN
else/RB
except/IN
the/DT
three/CD
networks/NNS
./.
''/''
The/DT
Big/NNP
Three/CD
's/POS
drumbeat/NN
for/IN
deregulation/NN
began/VBD
intensifying/VBG
in/IN
the/DT
summer/NN
when/WRB
the/DT
former/JJ
Time/NNP
Inc./NNP
went/VBD
ahead/RB
with/IN
plans/NNS
to/TO
acquire/VB
Warner/NNP
./.
Although/IN
Time/NNP
already/RB
had/VBD
a/DT
long-term/JJ
contract/NN
to/TO
buy/VB
movies/NNS
from/IN
Warner/NNP
,/,
the/DT
merger/NN
will/MD
let/VB
Time/NNP
's/POS
largely/RB
unregulated/JJ
pay-cable/JJ
channel/NN
,/,
Home/NNP
Box/NNP
Office/NNP
,/,
own/VB
the/DT
Warner/NNP
movies/NNS
aired/VBN
on/IN
HBO/NNP
--/:
a/DT
vertical/JJ
integration/NN
that/WDT
is/VBZ
effectively/RB
blocked/VBN
by/IN
fin-syn/JJ
regulations/NNS
./.
NBC/NNP
's/POS
Mr./NNP
Wright/NNP
led/VBD
the/DT
way/NN
in/IN
decrying/VBG
the/DT
networks/NNS
'/POS
inability/NN
to/TO
match/VB
a/DT
Time-Warner/NNP
combination/NN
./.
He/PRP
spoke/VBD
up/IN
again/RB
when/WRB
the/DT
Sony/NNP
bid/NN
for/IN
Columbia/NNP
was/VBD
announced/VBN
./.
Since/IN
NBC/NNP
's/POS
interest/NN
in/IN
the/DT
Qintex/NNP
bid/NN
for/IN
MGM\/UA/NNP
was/VBD
disclosed/VBN
,/,
Mr./NNP
Wright/NNP
has/VBZ
n't/RB
been/VBN
available/JJ
for/IN
comment/NN
./.
With/IN
a/DT
Qintex/NNP
deal/NN
,/,
NBC/NNP
would/MD
move/VB
into/IN
uncharted/JJ
territory/NN
--/:
possibly/RB
raising/VBG
hackles/NNS
at/IN
the/DT
studios/NNS
and/CC
in/IN
Washington/NNP
./.
``/``
It/PRP
's/VBZ
never/RB
really/RB
been/VBN
tested/VBN
,/,
''/''
says/VBZ
William/NNP
Lilley/NNP
III/NNP
,/,
who/WP
as/IN
a/DT
top/JJ
CBS/NNP
executive/NN
spent/VBD
years/NNS
lobbying/VBG
to/TO
have/VB
the/DT
rules/NNS
lifted/VBN
./.
He/PRP
now/RB
runs/VBZ
Policy/NNP
Communications/NNPS
in/IN
Washington/NNP
,/,
consulting/VBG
to/TO
media/NNS
companies/NNS
./.
Fin-syn/JJ
rules/NNS
do/VBP
n't/RB
explicitly/RB
block/VB
a/DT
network/NN
from/IN
buying/VBG
a/DT
passive/JJ
,/,
small/JJ
stake/NN
in/IN
a/DT
company/NN
that/IN
profits/VBZ
from/IN
the/DT
rerun/NN
syndication/NN
networks/NNS
ca/MD
n't/RB
enjoy/VB
./.
Hence/RB
,/,
NBC/NNP
might/MD
be/VB
able/JJ
to/TO
take/VB
,/,
say/VB
,/,
a/DT
5/CD
%/NN
stake/NN
in/IN
a/DT
company/NN
such/JJ
as/IN
MGM\/UA/NNP
./.
If/IN
the/DT
transaction/NN
raised/VBD
objections/NNS
,/,
the/DT
studio/NN
's/POS
syndication/NN
operations/NNS
could/MD
be/VB
spun/VBN
off/IN
into/IN
a/DT
separate/JJ
firm/NN
in/IN
which/WDT
the/DT
network/NN
does/VBZ
n't/RB
have/VB
a/DT
direct/JJ
stake/NN
./.
But/CC
such/JJ
convolutions/NNS
would/MD
still/RB
block/VB
the/DT
networks/NNS
from/IN
grabbing/VBG
a/DT
big/JJ
chunk/NN
of/IN
the/DT
riches/NN
of/IN
syndication/NN
./.
Under/IN
current/JJ
rules/NNS
,/,
even/RB
when/WRB
a/DT
network/NN
fares/VBZ
well/RB
with/IN
a/DT
100%-owned/JJ
series/NN
--/:
ABC/NNP
,/,
for/IN
example/NN
,/,
made/VBD
a/DT
killing/NN
in/IN
broadcasting/VBG
its/PRP$
popular/JJ
crime\/comedy/NN
``/``
Moonlighting/NNP
''/''
--/:
it/PRP
is/VBZ
n't/RB
allowed/VBN
to/TO
share/VB
in/IN
the/DT
continuing/VBG
proceeds/NNS
when/WRB
the/DT
reruns/NNS
are/VBP
sold/VBN
to/TO
local/JJ
stations/NNS
./.
Instead/RB
,/,
ABC/NNP
will/MD
have/VB
to/TO
sell/VB
off/IN
the/DT
rights/NNS
for/IN
a/DT
one-time/JJ
fee/NN
./.
The/DT
networks/NNS
admit/VBP
that/IN
the/DT
chances/NNS
of/IN
getting/VBG
the/DT
relief/NN
they/PRP
want/VBP
are/VBP
slim/JJ
--/:
for/IN
several/JJ
years/NNS
at/IN
the/DT
least/JJS
./.
Six/CD
years/NNS
ago/IN
they/PRP
were/VBD
tantalizingly/RB
close/JJ
./.
The/DT
Reagan-era/NNP
Federal/NNP
Communications/NNPS
Commission/NNP
had/VBD
ruled/VBN
in/IN
favor/NN
of/IN
killing/VBG
most/JJS
of/IN
the/DT
rules/NNS
./.
Various/JJ
evidence/NN
,/,
including/VBG
a/DT
Brookings/NNP
Institution/NNP
study/NN
of/IN
some/DT
800/CD
series/NN
that/IN
the/DT
networks/NNS
had/VBD
aired/VBN
and/CC
had/VBD
partly/RB
owned/VBN
in/IN
the/DT
1960s/CD
,/,
showed/VBD
the/DT
networks/NNS
did/VBD
n't/RB
wield/VB
undue/JJ
control/NN
over/IN
the/DT
studios/NNS
as/IN
had/VBD
been/VBN
alleged/VBN
./.
But/CC
just/RB
eight/CD
days/NNS
before/IN
the/DT
rules/NNS
were/VBD
to/TO
die/VB
,/,
former/JJ
President/NNP
Ronald/NNP
Reagan/NNP
,/,
a/DT
one-time/JJ
actor/NN
,/,
intervened/VBD
on/IN
behalf/NN
of/IN
Hollywood/NNP
./.
The/DT
FCC/NNP
effort/NN
collapsed/VBD
./.
The/DT
networks/NNS
and/CC
studios/NNS
have/VBP
bickered/VBN
ever/RB
since/IN
./.
Network/NN
officials/NNS
involved/VBN
in/IN
the/DT
studio/NN
talks/NNS
may/MD
hope/VB
the/DT
foreign/JJ
influx/NN
builds/VBZ
more/JJR
support/NN
in/IN
Washington/NNP
,/,
but/CC
that/DT
seems/VBZ
unlikely/JJ
./.
In/IN
Congress/NNP
,/,
the/DT
issue/NN
falters/VBZ
:/:
It/PRP
's/VBZ
about/IN
money/NN
,/,
not/RB
program/NN
quality/NN
,/,
and/CC
Hollywood/NNP
has/VBZ
lots/NNS
of/IN
clout/NN
given/VBN
its/PRP$
fund/NN
raising/NN
for/IN
senators/NNS
and/CC
representatives/NNS
overseeing/VBG
the/DT
issue/NN
./.
A/DT
spokesman/NN
for/IN
Rep./NNP
Edward/NNP
J./NNP
Markey/NNP
D-Mass./NNP
who/WP
heads/VBZ
a/DT
subcommittee/NN
that/WDT
oversees/VBZ
the/DT
FCC/NNP
,/,
says/VBZ
Mr./NNP
Markey/NNP
feels/VBZ
``/``
the/DT
world/NN
has/VBZ
been/VBN
forever/RB
changed/VBN
by/IN
the/DT
Sony-Columbia/NNP
deal/NN
./.
''/''
But/CC
he/PRP
said/VBD
Mr./NNP
Markey/NNP
hopes/VBZ
this/DT
pushes/VBZ
the/DT
networks/NNS
and/CC
studios/NNS
to/TO
work/VB
it/PRP
out/IN
on/IN
their/PRP$
own/JJ
./.
And/CC
at/IN
the/DT
FCC/NNP
,/,
meanwhile/RB
,/,
new/JJ
Chairman/NNP
Alfred/NNP
C./NNP
Sikes/NNP
has/VBZ
said/VBN
he/PRP
wants/VBZ
the/DT
two/CD
sides/NNS
to/TO
hammer/VB
out/IN
their/PRP$
own/JJ
plan/NN
./.
Recognition/NNP
Equipment/NNP
Inc./NNP
said/VBD
it/PRP
settled/VBD
a/DT
civil/JJ
action/NN
filed/VBN
against/IN
it/PRP
by/IN
the/DT
federal/JJ
government/NN
on/IN
behalf/NN
of/IN
the/DT
U.S./NNP
Postal/NNP
Service/NNP
./.
The/DT
government/NN
sued/VBD
the/DT
company/NN
in/IN
April/NNP
,/,
seeking/VBG
$/$
23,000/CD
and/CC
other/JJ
unspecified/JJ
damages/NNS
related/VBN
to/TO
an/DT
alleged/JJ
contract-steering/JJ
scheme/NN
./.
The/DT
suit/NN
named/VBD
the/DT
company/NN
,/,
former/JJ
chief/NN
executive/NN
officer/NN
William/NNP
G./NNP
Moore/NNP
Jr./NNP
,/,
former/JJ
vice/NN
president/NN
Robert/NNP
W./NNP
Reedy/NNP
and/CC
five/CD
defendants/NNS
who/WP
were/VBD
n't/RB
part/NN
of/IN
the/DT
company/NN
./.
The/DT
suit/NN
charged/VBD
the/DT
defendants/NNS
with/IN
causing/VBG
Peter/NNP
E./NNP
Voss/NNP
,/,
an/DT
ex-member/NN
of/IN
the/DT
Postal/NNP
Service/NNP
board/NN
of/IN
governors/NNS
,/,
to/TO
accept/VB
$/$
23,000/CD
in/IN
bribes/NNS
,/,
kickbacks/NNS
and/CC
gratuities/NNS
./.
Mr./NNP
Voss/NNP
was/VBD
previously/RB
sentenced/VBN
to/TO
four/CD
years/NNS
in/IN
prison/NN
and/CC
fined/VBN
$/$
11,000/CD
for/IN
his/PRP$
role/NN
in/IN
the/DT
scheme/NN
./.
In/IN
the/DT
agreement/NN
,/,
Recognition/NN
agreed/VBD
to/TO
pay/VB
the/DT
government/NN
$/$
20,000/CD
in/IN
return/NN
for/IN
the/DT
release/NN
of/IN
all/DT
claims/NNS
against/IN
the/DT
company/NN
,/,
Mr./NNP
Moore/NNP
and/CC
Mr./NNP
Reedy/NNP
./.
The/DT
five/CD
additional/JJ
defendants/NNS
were/VBD
n't/RB
parties/NNS
to/TO
the/DT
settlement/NN
./.
A/DT
trial/NN
on/IN
criminal/JJ
allegations/NNS
against/IN
the/DT
company/NN
and/CC
the/DT
same/JJ
two/CD
former/JJ
executives/NNS
began/VBD
Sept./NNP
27/CD
in/IN
federal/JJ
court/NN
for/IN
the/DT
District/NNP
of/IN
Columbia/NNP
./.
They/PRP
were/VBD
indicted/VBN
last/JJ
October/NNP
on/IN
charges/NNS
of/IN
fraud/NN
,/,
theft/NN
and/CC
conspiracy/NN
related/VBN
to/TO
an/DT
effort/NN
to/TO
win/VB
$/$
400/CD
million/CD
in/IN
Postal/NNP
Service/NNP
equipment/NN
contracts/NNS
by/IN
the/DT
maker/NN
of/IN
data/NNS
management/NN
equipment/NN
./.
The/DT
company/NN
and/CC
its/PRP$
executives/NNS
deny/VBP
the/DT
charges/NNS
./.
In/IN
a/DT
related/VBN
development/NN
,/,
Recognition/NNP
Equipment/NNP
said/VBD
the/DT
Postal/NNP
Service/NNP
has/VBZ
barred/VBN
the/DT
company/NN
from/IN
bidding/VBG
on/IN
postal/JJ
contracts/NNS
for/IN
an/DT
additional/JJ
120/CD
days/NNS
./.
The/DT
Postal/NNP
Service/NNP
originally/RB
suspended/VBD
the/DT
company/NN
Oct./NNP
7/CD
,/,
1988/CD
,/,
and/CC
has/VBZ
been/VBN
renewing/VBG
the/DT
ban/NN
ever/RB
since/IN
./.
The/DT
company/NN
said/VBD
it/PRP
will/MD
continue/VB
to/TO
pursue/VB
a/DT
lifting/NN
of/IN
the/DT
suspension/NN
./.
Intel/NNP
Corp./NNP
reported/VBD
a/DT
50/CD
%/NN
drop/NN
in/IN
third-quarter/NN
net/NN
income/NN
,/,
partly/RB
because/IN
of/IN
a/DT
one-time/JJ
charge/NN
for/IN
discontinued/VBN
operations/NNS
./.
The/DT
big/JJ
semiconductor/NN
and/CC
computer/NN
maker/NN
,/,
said/VBD
it/PRP
had/VBD
net/NN
of/IN
$/$
72/CD
million/CD
,/,
or/CC
38/CD
cents/NNS
,/,
down/IN
50/CD
%/NN
from/IN
$/$
142.7/CD
million/CD
,/,
or/CC
78/CD
cents/NNS
a/DT
share/NN
./.
The/DT
lower/JJR
net/NN
included/VBD
a/DT
charge/NN
of/IN
$/$
35/CD
million/CD
,/,
equal/JJ
to/TO
12/CD
cents/NNS
a/DT
share/NN
on/IN
an/DT
after-tax/JJ
basis/NN
,/,
for/IN
the/DT
cost/NN
of/IN
abandoning/VBG
a/DT
computer-systems/NNS
joint/NN
venture/NN
with/IN
Siemens/NNP
AG/NNP
of/IN
West/NNP
Germany/NNP
./.
Earning/NN
also/RB
fell/VBD
from/IN
the/DT
year-ago/JJ
period/NN
because/IN
of/IN
slowing/VBG
microchip/NN
demand/NN
./.
Sales/NNS
amounted/VBD
to/TO
$/$
771.4/CD
million/CD
,/,
down/IN
1.7/CD
%/NN
from/IN
$/$
784.9/CD
million/CD
./.
Intel/NNP
's/POS
stock/NN
rose/VBD
in/IN
early/JJ
over-the-counter/NN
trading/NN
Friday/NNP
,/,
as/IN
investors/NNS
appeared/VBD
relieved/VBN
that/IN
the/DT
company/NN
's/POS
income/NN
from/IN
continuing/VBG
operations/NNS
was/VBD
only/RB
slightly/RB
below/IN
the/DT
second/JJ
quarter/NN
's/POS
earnings/NNS
of/IN
$/$
99.3/CD
million/CD
,/,
or/CC
53/CD
cents/NNS
a/DT
share/NN
,/,
and/CC
that/IN
sales/NNS
actually/RB
exceeded/VBD
the/DT
$/$
747.3/CD
million/CD
for/IN
the/DT
second/JJ
period/NN
./.
But/CC
Intel/NNP
later/RB
succumbed/VBD
to/TO
the/DT
stock/NN
market/NN
's/POS
plunge/NN
,/,
closing/VBG
at/IN
$/$
31.75/CD
,/,
down/IN
$/$
2.125/CD
./.
In/IN
August/NNP
,/,
Intel/NNP
warned/VBD
that/IN
third-quarter/NN
earnings/NNS
might/MD
be/VB
``/``
flat/JJ
to/TO
down/JJ
''/''
from/IN
the/DT
previous/JJ
period/NN
's/POS
because/IN
of/IN
slowing/VBG
sales/NNS
growth/NN
of/IN
its/PRP$
80386/CD
microprocessor/NN
,/,
start-up/JJ
costs/NNS
associated/VBN
with/IN
a/DT
line/NN
of/IN
computers/NNS
and/CC
costs/NNS
of/IN
preparing/VBG
for/IN
mass/NN
shipments/NNS
of/IN
the/DT
company/NN
's/POS
new/JJ
80486/CD
chip/NN
in/IN
the/DT
current/JJ
quarter/NN
./.
On/IN
Friday/NNP
,/,
Andrew/NNP
S.Grove/NNP
,/,
Intel/NNP
president/NN
and/CC
chief/NN
executive/NN
officer/NN
,/,
said/VBD
``/``
Intel/NNP
's/POS
business/NN
is/VBZ
strong/JJ
./.
Our/PRP$
bookings/NNS
improved/VBD
as/IN
the/DT
quarter/NN
progressed/VBD
and/CC
September/NNP
was/VBD
especially/RB
good/JJ
./.
For/IN
the/DT
full/JJ
quarter/NN
,/,
our/PRP$
bookings/NNS
were/VBD
higher/JJR
than/IN
the/DT
previous/JJ
quarter/NN
,/,
and/CC
our/PRP$
book-to-bill/NN
ratio/NN
exceeded/VBD
1.0/CD
./.
''/''
For/IN
the/DT
nine-month/JJ
period/NN
,/,
Intel/NNP
reported/VBD
net/NN
of/IN
$/$
268.3/CD
million/CD
,/,
or/CC
$/$
1.43/CD
a/DT
share/NN
,/,
down/IN
27/CD
%/NN
from/IN
$/$
367.1/CD
million/CD
,/,
or/CC
$/$
2.05/CD
a/DT
share/NN
./.
Revenue/NN
amounted/VBD
to/TO
$/$
2.23/CD
billion/CD
,/,
up/IN
slightly/RB
from/IN
$/$
2.15/CD
billion/CD
./.
Walter/NNP
Sisulu/NNP
and/CC
the/DT
African/NNP
National/NNP
Congress/NNP
came/VBD
home/NN
yesterday/NN
./.
After/IN
26/CD
years/NNS
in/IN
prison/NN
,/,
Mr./NNP
Sisulu/NNP
,/,
the/DT
77-year-old/JJ
former/JJ
secretary-general/NN
of/IN
the/DT
liberation/NN
movement/NN
,/,
was/VBD
dropped/VBN
off/IN
at/IN
his/PRP$
house/NN
by/IN
a/DT
prison/NN
services/NNS
'/POS
van/NN
just/RB
as/IN
the/DT
sun/NN
was/VBD
coming/VBG
up/IN
./.
At/IN
the/DT
same/JJ
time/NN
,/,
six/CD
ANC/NNP
colleagues/NNS
,/,
five/CD
of/IN
whom/WP
were/VBD
arrested/VBN
with/IN
him/PRP
in/IN
1963/CD
and/CC
sentenced/VBN
to/TO
life/NN
imprisonment/NN
,/,
were/VBD
reunited/VBN
with/IN
their/PRP$
families/NNS
at/IN
various/JJ
places/NNS
around/IN
the/DT
country/NN
./.
And/CC
as/IN
the/DT
graying/VBG
men/NNS
returned/VBD
to/TO
their/PRP$
homes/NNS
,/,
the/DT
ANC/NNP
,/,
outlawed/VBN
in/IN
South/NNP
Africa/NNP
since/IN
1960/CD
and/CC
still/RB
considered/VBN
to/TO
be/VB
the/DT
chief/NN
public/JJ
enemy/NN
by/IN
the/DT
white/JJ
government/NN
,/,
defiantly/RB
returned/VBD
to/TO
the/DT
streets/NNS
of/IN
the/DT
country/NN
's/POS
black/JJ
townships/NNS
./.
A/DT
huge/JJ
ANC/NNP
flag/NN
,/,
with/IN
black/JJ
,/,
green/JJ
and/CC
gold/JJ
stripes/NNS
,/,
was/VBD
hoisted/VBN
over/IN
the/DT
rickety/JJ
gate/NN
at/IN
Mr./NNP
Sisulu/NNP
's/POS
modest/JJ
house/NN
,/,
while/IN
on/IN
the/DT
street/NN
out/IN
front/NN
,/,
boys/NNS
displayed/VBD
the/DT
ANC/NNP
colors/NNS
on/IN
their/PRP$
shirts/NNS
,/,
caps/NNS
and/CC
scarves/NN
./.
At/IN
the/DT
small/JJ
four-room/JJ
home/NN
of/IN
Elias/NNP
Motsoaledi/NNP
,/,
a/DT
leading/VBG
ANC/NNP
unionist/NN
and/CC
a/DT
former/JJ
commander/NN
in/IN
the/DT
group/NN
's/POS
armed/VBN
wing/NN
,/,
Umkhonto/NNP
we/PRP
Sizwe/NNP
,/,
well-wishers/NNS
stuck/VBD
little/JJ
ANC/NNP
flags/NNS
in/IN
their/PRP$
hair/NN
and/CC
a/DT
man/NN
tooted/VBD
on/IN
an/DT
antelope/NN
horn/NN
wrapped/VBN
in/IN
ANC/NNP
ribbons/NNS
./.
``/``
I/PRP
am/VBP
happy/JJ
to/TO
see/VB
the/DT
spirit/NN
of/IN
the/DT
people/NNS
,/,
''/''
said/VBD
Mr./NNP
Sisulu/NNP
,/,
looking/VBG
dapper/JJ
in/IN
a/DT
new/JJ
gray/JJ
suit/NN
./.
As/IN
the/DT
crowd/NN
outside/IN
his/PRP$
home/NN
shouted/VBD
``/``
ANC/NNP
,/,
ANC/NNP
,/,
''/''
the/DT
old/JJ
man/NN
shot/VBD
his/PRP$
fists/NNS
into/IN
the/DT
air/NN
./.
``/``
I/PRP
'm/VBP
inspired/VBN
by/IN
the/DT
mood/NN
of/IN
the/DT
people/NNS
./.
''/''
Under/IN
the/DT
laws/NNS
of/IN
the/DT
land/NN
,/,
the/DT
ANC/NNP
remains/VBZ
an/DT
illegal/JJ
organization/NN
,/,
and/CC
its/PRP$
headquarters/NNS
are/VBP
still/RB
in/IN
Lusaka/NNP
,/,
Zambia/NNP
./.
But/CC
the/DT
unconditional/JJ
release/NN
of/IN
the/DT
seven/CD
leaders/NNS
,/,
who/WP
once/RB
formed/VBD
the/DT
intellectual/JJ
and/CC
organizational/JJ
core/NN
of/IN
the/DT
ANC/NNP
,/,
is/VBZ
a/DT
de/FW
facto/FW
unbanning/NN
of/IN
the/DT
movement/NN
and/CC
the/DT
rebirth/NN
of/IN
its/PRP$
internal/JJ
wing/NN
./.
``/``
The/DT
government/NN
can/MD
never/RB
put/VB
the/DT
ANC/NNP
back/NN
into/IN
the/DT
bottle/NN
again/RB
,/,
''/''
said/VBD
Cassim/NNP
Saloojee/NNP
,/,
a/DT
veteran/JJ
anti-apartheid/NN
activist/NN
on/IN
hand/NN
to/TO
welcome/VB
Mr./NNP
Sisulu/NNP
./.
``/``
Things/NNS
have/VBP
gone/VBN
too/RB
far/RB
for/IN
the/DT
government/NN
to/TO
stop/VB
them/PRP
now/RB
./.
There/EX
's/VBZ
no/DT
turning/VBG
back/NN
./.
''/''
There/EX
was/VBD
certainly/RB
no/RB
stopping/VBG
the/DT
tide/NN
of/IN
ANC/NNP
emotion/NN
last/JJ
night/NN
,/,
when/WRB
hundreds/NNS
of/IN
people/NNS
jammed/VBD
into/IN
the/DT
Holy/NNP
Cross/NNP
Anglican/NNP
Church/NNP
in/IN
Soweto/NNP
for/IN
what/WP
became/VBD
the/DT
first/JJ
ANC/NNP
rally/NN
in/IN
the/DT
country/NN
in/IN
30/CD
years/NNS
./.
Deafening/VBG
chants/NNS
of/IN
``/``
ANC/NNP
''/''
and/CC
``/``
Umkhonto/NNP
we/PRP
Sizwe/NNP
''/''
shook/VBD
the/DT
church/NN
as/IN
the/DT
seven/CD
aging/VBG
men/NNS
vowed/VBD
that/IN
the/DT
ANC/NNP
would/MD
continue/VB
its/PRP$
fight/NN
against/IN
the/DT
government/NN
and/CC
the/DT
policies/NNS
of/IN
racial/JJ
segregation/NN
on/IN
all/DT
fronts/NNS
,/,
including/VBG
the/DT
armed/VBN
struggle/NN
./.
And/CC
they/PRP
called/VBD
on/IN
the/DT
government/NN
to/TO
release/VB
Nelson/NNP
Mandela/NNP
,/,
the/DT
ANC/NNP
's/POS
leading/VBG
figure/NN
,/,
who/WP
was/VBD
jailed/VBN
with/IN
them/PRP
and/CC
remains/VBZ
in/IN
prison/NN
./.
Without/IN
him/PRP
,/,
said/VBD
Mr./NNP
Sisulu/NNP
,/,
the/DT
freeing/NN
of/IN
the/DT
others/NNS
``/``
is/VBZ
only/RB
a/DT
half-measure/NN
./.
''/''
President/NNP
F.W./NNP
de/NNP
Klerk/NNP
released/VBD
the/DT
ANC/NNP
men/NNS
--/:
along/IN
with/IN
one/CD
of/IN
the/DT
founding/VBG
members/NNS
of/IN
the/DT
Pan/NNP
Africanist/NNP
Congress/NNP
,/,
a/DT
rival/JJ
liberation/NN
group/NN
--/:
as/IN
part/NN
of/IN
his/PRP$
efforts/NNS
to/TO
create/VB
a/DT
climate/NN
of/IN
trust/NN
and/CC
peace/NN
in/IN
which/WDT
his/PRP$
government/NN
can/MD
begin/VB
negotiations/NNS
with/IN
black/JJ
leaders/NNS
over/IN
a/DT
new/JJ
constitution/NN
aimed/VBN
at/IN
giving/VBG
blacks/NNS
a/DT
voice/NN
in/IN
national/JJ
government/NN
./.
But/CC
Pretoria/NNP
may/MD
instead/RB
be/VB
creating/VBG
a/DT
climate/NN
for/IN
more/JJR
turmoil/NN
and/CC
uncertainty/NN
in/IN
this/DT
racially/RB
divided/VBN
country/NN
./.
As/IN
other/JJ
repressive/JJ
governments/NNS
,/,
particularly/RB
Poland/NNP
and/CC
the/DT
Soviet/NNP
Union/NNP
,/,
have/VBP
recently/RB
discovered/VBN
,/,
initial/JJ
steps/NNS
to/TO
open/VB
up/IN
society/NN
can/MD
create/VB
a/DT
momentum/NN
for/IN
radical/JJ
change/NN
that/WDT
becomes/VBZ
difficult/JJ
,/,
if/IN
not/RB
impossible/JJ
,/,
to/TO
control/VB
./.
As/IN
the/DT
days/NNS
go/VBP
by/IN
,/,
the/DT
South/JJ
African/JJ
government/NN
will/MD
be/VB
ever/RB
more/RBR
hard/RB
pressed/VBN
to/TO
justify/VB
the/DT
continued/VBN
imprisonment/NN
of/IN
Mr./NNP
Mandela/NNP
as/RB
well/RB
as/IN
the/DT
continued/VBN
banning/NN
of/IN
the/DT
ANC/NNP
and/CC
enforcement/NN
of/IN
the/DT
state/NN
of/IN
emergency/NN
./.
If/IN
it/PRP
does/VBZ
n't/RB
yield/VB
on/IN
these/DT
matters/NNS
,/,
and/CC
eventually/RB
begin/VB
talking/VBG
directly/RB
to/TO
the/DT
ANC/NNP
,/,
the/DT
expectations/NNS
and/CC
promise/NN
raised/VBN
by/IN
yesterday/NN
's/POS
releases/NNS
will/MD
turn/VB
to/TO
disillusionment/NN
and/CC
unrest/NN
./.
If/IN
it/PRP
does/VBZ
,/,
the/DT
large/JJ
number/NN
of/IN
right-wing/JJ
whites/NNS
,/,
who/WP
oppose/VBP
any/DT
concessions/NNS
to/TO
the/DT
black/JJ
majority/NN
,/,
will/MD
step/VB
up/IN
their/PRP$
agitation/NN
and/CC
threats/NNS
to/TO
take/VB
matters/NNS
into/IN
their/PRP$
own/JJ
hands/NNS
./.
The/DT
newly/RB
released/VBN
ANC/NNP
leaders/NNS
also/RB
will/MD
be/VB
under/IN
enormous/JJ
pressure/NN
./.
The/DT
government/NN
is/VBZ
watching/VBG
closely/RB
to/TO
see/VB
if/IN
their/PRP$
presence/NN
in/IN
the/DT
townships/NNS
leads/VBZ
to/TO
increased/VBN
anti-government/NN
protests/NNS
and/CC
violence/NN
;/:
if/IN
it/PRP
does/VBZ
,/,
Pretoria/NNP
will/MD
use/VB
this/DT
as/IN
a/DT
reason/NN
to/TO
keep/VB
Mr./NNP
Mandela/NNP
behind/IN
bars/NNS
./.
Pretoria/NNP
has/VBZ
n't/RB
forgotten/VBN
why/WRB
they/PRP
were/VBD
all/DT
sentenced/VBN
to/TO
life/NN
imprisonment/NN
in/IN
the/DT
first/JJ
place/NN
:/:
for/IN
sabotage/NN
and/CC
conspiracy/NN
to/TO
overthrow/VB
the/DT
government/NN
./.
In/IN
addition/NN
,/,
the/DT
government/NN
is/VBZ
figuring/VBG
that/IN
the/DT
releases/NNS
could/MD
create/VB
a/DT
split/NN
between/IN
the/DT
internal/JJ
and/CC
external/JJ
wings/NNS
of/IN
the/DT
ANC/NNP
and/CC
between/IN
the/DT
newly/RB
freed/VBN
leaders/NNS
and/CC
those/DT
activists/NNS
who/WP
have/VBP
emerged/VBN
as/IN
leaders/NNS
inside/IN
the/DT
country/NN
during/IN
their/PRP$
imprisonment/NN
./.
In/IN
order/NN
to/TO
head/VB
off/IN
any/DT
divisions/NNS
,/,
Mr./NNP
Mandela/NNP
,/,
in/IN
a/DT
meeting/NN
with/IN
his/PRP$
colleagues/NNS
before/IN
they/PRP
were/VBD
released/VBN
,/,
instructed/VBD
them/PRP
to/TO
report/VB
to/TO
the/DT
ANC/NNP
headquarters/NN
in/IN
Lusaka/NNP
as/RB
soon/RB
as/IN
possible/JJ
./.
The/DT
men/NNS
also/RB
will/MD
be/VB
faced/VBN
with/IN
bridging/VBG
the/DT
generation/NN
gap/NN
between/IN
themselves/PRP
and/CC
the/DT
country/NN
's/POS
many/JJ
militant/JJ
black/JJ
youths/NNS
,/,
the/DT
so-called/JJ
young/JJ
lions/NNS
who/WP
are/VBP
anxious/JJ
to/TO
see/VB
the/DT
old/JJ
lions/NNS
in/IN
action/NN
./.
Says/VBZ
Peter/NNP
Mokaba/NNP
,/,
president/NN
of/IN
the/DT
South/NNP
African/NNP
Youth/NNP
Congress/NNP
:/:
``/``
We/PRP
will/MD
be/VB
expecting/VBG
them/PRP
to/TO
act/VB
like/IN
leaders/NNS
of/IN
the/DT
ANC/NNP
./.
''/''
They/PRP
never/RB
considered/VBD
themselves/PRP
to/TO
be/VB
anything/NN
else/RB
./.
At/IN
last/JJ
night/NN
's/POS
rally/NN
,/,
they/PRP
called/VBD
on/IN
their/PRP$
followers/NNS
to/TO
be/VB
firm/JJ
,/,
yet/RB
disciplined/VBN
,/,
in/IN
their/PRP$
opposition/NN
to/TO
apartheid/NN
./.
``/``
We/PRP
emphasize/VBP
discipline/NN
because/IN
we/PRP
know/VBP
that/IN
the/DT
government/NN
is/VBZ
very/RB
,/,
very/RB
sensitive/JJ
,/,
''/''
said/VBD
Andrew/NNP
Mlangeni/NNP
,/,
another/DT
early/JJ
Umkhonto/NNP
leader/NN
who/WP
is/VBZ
now/RB
63/CD
./.
``/``
We/PRP
want/VBP
to/TO
see/VB
Nelson/NNP
Mandela/NNP
and/CC
all/PDT
our/PRP$
comrades/NNS
out/IN
of/IN
prison/NN
,/,
and/CC
if/IN
we/PRP
are/VBP
n't/RB
disciplined/VBN
we/PRP
may/MD
not/RB
see/VB
them/PRP
here/RB
with/IN
us/PRP
./.
''/''
There/EX
's/VBZ
an/DT
intense/JJ
debate/NN
in/IN
South/NNP
Korean/NNP
President/NNP
Roh/NNP
Tae/NNP
Woo/NNP
's/POS
inner/JJ
circle/NN
over/IN
his/PRP$
scheduled/VBN
speech/NN
Wednesday/NNP
to/TO
a/DT
joint/JJ
meeting/NN
of/IN
Congress/NNP
:/:
Should/MD
he/PRP
give/VB
it/PRP
in/IN
English/NNP
or/CC
Korean/NNP
?/.
It/PRP
would/MD
be/VB
more/JJR
effective/JJ
with/IN
the/DT
U.S./NNP
politicians/NNS
and/CC
public/NN
in/IN
English/NNP
,/,
the/DT
president/NN
's/POS
foreign/JJ
policy/NN
advisers/NNS
argue/VBP
./.
But/CC
,/,
counter/VBP
some/DT
domestic/JJ
political/JJ
aides/NNS
,/,
it/PRP
would/MD
hurt/VB
Mr./NNP
Roh/NNP
at/IN
home/NN
if/IN
he/PRP
seems/VBZ
to/TO
be/VB
pandering/VBG
to/TO
the/DT
Americans/NNPS
./.
U.S./NNP
politicians/NNS
and/CC
policy-makers/NNS
would/MD
do/VB
well/RB
to/TO
remember/VB
such/JJ
backhome/NN
pressures/NNS
on/IN
the/DT
South/JJ
Korean/JJ
president/NN
as/IN
they/PRP
prepare/VBP
for/IN
an/DT
important/JJ
series/NN
of/IN
meetings/NNS
with/IN
him/PRP
this/DT
week/NN
./.
For/IN
U.S.-South/NNP
Korean/NNP
relations/NNS
,/,
in/IN
economic/JJ
and/CC
security/NN
terms/NNS
,/,
are/VBP
at/IN
their/PRP$
most/JJS
critical/JJ
stage/NN
since/IN
the/DT
Korean/NNP
War/NNP
./.
When/WRB
most/JJS
Americans/NNPS
think/VBP
about/IN
South/NNP
Korea/NNP
,/,
they/PRP
still/RB
conjure/VBP
up/IN
images/NNS
of/IN
the/DT
war/NN
years/NNS
,/,
popularized/VBN
by/IN
the/DT
TV/NN
series/NN
M\*A\*S\*H/NNP
./.
But/CC
South/NNP
Korea/NNP
no/RB
longer/RB
is/VBZ
a/DT
backwater/NN
,/,
Third/NNP
World/NNP
country/NN
./.
With/IN
a/DT
dynamic/JJ
,/,
growing/VBG
economy/NN
,/,
it/PRP
is/VBZ
the/DT
U.S./NNP
's/POS
seventh-largest/JJ
trading/VBG
partner/NN
./.
Moreover/RB
,/,
the/DT
Korean/JJ
peninsula/NN
remains/VBZ
one/CD
of/IN
the/DT
strategic/JJ
focal/JJ
points/NNS
of/IN
East/NNP
Asia/NNP
;/:
there/EX
are/VBP
43,000/CD
U.S./NNP
troops/NNS
stationed/VBN
there/RB
./.
And/CC
the/DT
country/NN
is/VBZ
at/IN
a/DT
political/JJ
crossroads/NNS
now/RB
,/,
as/IN
it/PRP
struggles/VBZ
with/IN
its/PRP$
new/JJ
experiment/NN
in/IN
democracy/NN
./.
South/NNP
Korea/NNP
is/VBZ
``/``
critically/RB
important/JJ
to/TO
us/PRP
now/RB
,/,
both/DT
economically/RB
and/CC
in/IN
terms/NNS
of/IN
security/NN
,/,
''/''
says/VBZ
Sen./NNP
Richard/NNP
Lugar/NNP
R./NNP
,/,
Ind./NNP
the/DT
former/JJ
chairman/NN
of/IN
the/DT
Senate/NNP
Foreign/NNP
Relations/NNPS
Committee/NNP
./.
``/``
Unfortunately/RB
,/,
many/JJ
Americans/NNPS
do/VBP
n't/RB
think/VB
much/RB
about/IN
Korea/NNP
./.
But/CC
the/DT
miracle/NN
of/IN
their/PRP$
economic/JJ
growth/NN
and/CC
the/DT
development/NN
of/IN
democracy/NN
--/:
imperfect/JJ
though/IN
it/PRP
is/VBZ
--/:
are/VBP
very/RB
important/JJ
to/TO
the/DT
United/NNP
States/NNPS
./.
''/''
One/CD
major/JJ
topic/NN
during/IN
Mr./NNP
Roh/NNP
's/POS
visit/NN
will/MD
be/VB
human/JJ
rights/NNS
./.
Due/JJ
process/NN
still/RB
is/VBZ
denied/VBN
in/IN
South/NNP
Korea/NNP
;/:
a/DT
few/JJ
months/NNS
ago/IN
,/,
Kim/NNP
Dae/NNP
Jung/NNP
,/,
the/DT
major/JJ
opposition/NN
leader/NN
,/,
was/VBD
detained/VBN
and/CC
interrogated/VBN
for/IN
20/CD
hours/NNS
by/IN
security/NN
thugs/NNS
./.
Just/RB
as/IN
Pope/NNP
John/NNP
Paul/NNP
II/NNP
did/VBD
in/IN
Seoul/NNP
last/JJ
week/NN
,/,
President/NNP
Bush/NNP
and/CC
members/NNS
of/IN
Congress/NNP
ought/MD
to/TO
tell/VB
Mr./NNP
Roh/NNP
in/IN
no/DT
uncertain/JJ
terms/NNS
that/IN
this/DT
kind/NN
of/IN
behavior/NN
is/VBZ
unacceptable/JJ
./.
But/CC
context/NN
is/VBZ
important/JJ
./.
South/NNP
Korea/NNP
had/VBD
a/DT
free/JJ
election/NN
last/JJ
year/NN
;/:
the/DT
liberals/NNS
lost/VBD
only/RB
because/IN
they/PRP
could/MD
n't/RB
unite/VB
behind/IN
one/CD
candidate/NN
./.
Moreover/RB
,/,
there/EX
is/VBZ
a/DT
violent/JJ
anti-U.S./JJ
minority/NN
in/IN
South/NNP
Korea/NNP
--/:
as/IN
demonstrated/VBN
by/IN
the/DT
handful/NN
of/IN
radical/JJ
students/NNS
who/WP
broke/VBD
into/IN
U.S./NNP
Ambassador/NNP
Donald/NNP
Gregg/NNP
's/POS
residence/NN
in/IN
Seoul/NNP
Friday/NNP
and/CC
vandalized/VBD
it/PRP
the/DT
ambassador/NN
and/CC
his/PRP$
wife/NN
were/VBD
unharmed/JJ
Mr./NNP
Roh/NNP
,/,
a/DT
former/JJ
general/NN
and/CC
a/DT
member/NN
of/IN
the/DT
repressive/JJ
previous/JJ
regime/NN
,/,
has/VBZ
made/VBN
impressive/JJ
strides/NNS
in/IN
supporting/VBG
democratic/JJ
values/NNS
and/CC
institutions/NNS
./.
It/PRP
is/VBZ
n't/RB
a/DT
perfect/JJ
democracy/NN
,/,
but/CC
it/PRP
's/VBZ
a/DT
far/JJ
cry/NN
from/IN
the/DT
authoritarian/JJ
rule/NN
of/IN
only/RB
a/DT
few/JJ
years/NNS
ago/IN
./.
One/CD
thing/NN
that/DT
has/VBZ
n't/RB
changed/VBN
in/IN
South/NNP
Korea/NNP
is/VBZ
paranoia/NN
about/IN
North/NNP
Korea/NNP
;/:
several/JJ
people/NNS
are/VBP
being/VBG
prosecuted/VBN
for/IN
making/VBG
unapproved/JJ
visits/NNS
to/TO
the/DT
communist/NN
north/NN
./.
But/CC
a/DT
visit/NN
to/TO
Panmunjom/NNP
,/,
where/WRB
the/DT
constant/JJ
tension/NN
between/IN
the/DT
communists/NNS
and/CC
the/DT
joint/JJ
U.S.-South/JJ
Korean/JJ
forces/NNS
is/VBZ
palpable/JJ
,/,
makes/VBZ
it/PRP
easier/JJR
to/TO
understand/VB
these/DT
feelings/NNS
./.
Sometimes/RB
U.S./NNP
politicians/NNS
forget/VBP
that/IN
North/NNP
Korea/NNP
,/,
a/DT
country/NN
with/IN
a/DT
population/NN
of/IN
only/RB
20/CD
million/CD
,/,
has/VBZ
an/DT
armed/VBN
force/NN
of/IN
over/IN
one/CD
million/CD
troops/NNS
,/,
the/DT
sixth/JJ
largest/JJS
in/IN
the/DT
world/NN
./.
Whatever/WDT
winds/NNS
of/IN
change/NN
are/VBP
blowing/VBG
through/IN
much/JJ
of/IN
the/DT
communist/NN
bloc/NN
,/,
they/PRP
have/VBP
n't/RB
reached/VBN
Pyongyang/NNP
./.
As/RB
long/RB
as/IN
it/PRP
continues/VBZ
to/TO
pose/VB
a/DT
real/JJ
threat/NN
,/,
U.S./NNP
critics/NNS
ought/MD
to/TO
go/VB
slow/RB
on/IN
demands/NNS
to/TO
reduce/VB
troop/NN
levels/NNS
in/IN
South/NNP
Korea/NNP
./.
The/DT
major/JJ
topic/NN
when/WRB
Mr./NNP
Roh/NNP
calls/VBZ
on/IN
administration/NN
and/CC
congressional/JJ
figures/NNS
this/DT
week/NN
will/MD
be/VB
economics/NNS
and/CC
trade/NN
./.
South/NNP
Korea/NNP
hardly/RB
is/VBZ
without/IN
fault/NN
for/IN
trade/NN
frictions/NNS
with/IN
the/DT
U.S./NNP
;/:
most/JJS
experts/NNS
in/IN
the/DT
administration/NN
think/VBP
that/IN
Commerce/NNP
Secretary/NNP
Robert/NNP
Mosbacher/NNP
got/VBD
it/PRP
exactly/RB
wrong/RB
a/DT
few/JJ
months/NNS
ago/IN
when/WRB
he/PRP
declared/VBD
that/IN
South/NNP
Korea/NNP
is/VBZ
more/RBR
open/JJ
economically/RB
than/IN
Japan/NNP
./.
On/IN
agricultural/JJ
products/NNS
in/IN
particular/JJ
--/:
everything/NN
from/IN
beef/NN
to/TO
apples/NNS
--/:
the/DT
Koreans/NNPS
have/VBP
succumbed/VBN
to/TO
domestic/JJ
political/JJ
pressures/NNS
for/IN
protectionism/NN
./.
Yet/RB
,/,
earlier/RBR
this/DT
year/NN
,/,
South/NNP
Korea/NNP
promised/VBD
to/TO
make/VB
some/DT
real/JJ
concessions/NNS
on/IN
its/PRP$
investment/NN
laws/NNS
and/CC
other/JJ
trade/NN
impediments/NNS
./.
They/PRP
enabled/VBD
the/DT
country/NN
to/TO
avoid/VB
being/VBG
targeted/JJ
as/IN
an/DT
unfair/JJ
trade/NN
partner/NN
under/IN
the/DT
tough/JJ
``/``
Super/JJ
301/CD
''/''
section/NN
of/IN
the/DT
1988/CD
U.S./NNP
trade/NN
act/NN
./.
Separately/RB
,/,
as/IN
a/DT
result/NN
of/IN
the/DT
revaluation/NN
of/IN
the/DT
won/NN
and/CC
other/JJ
measures/NNS
,/,
the/DT
almost/RB
$/$
10/CD
billion/CD
trade/NN
surplus/NN
the/DT
South/NNP
Koreans/NNPS
enjoyed/VBD
with/IN
the/DT
U.S/NNP
last/JJ
year/NN
will/MD
be/VB
cut/VBN
in/IN
half/DT
this/DT
year/NN
./.
Moreover/RB
,/,
just/RB
a/DT
few/JJ
days/NNS
ago/IN
,/,
the/DT
national/JJ
assembly/NN
,/,
with/IN
the/DT
governing/VBG
and/CC
opposition/NN
parties/NNS
in/IN
an/DT
unusual/JJ
alliance/NN
,/,
passed/VBD
a/DT
resolution/NN
calling/VBG
for/IN
a/DT
gradual/JJ
opening/NN
up/IN
of/IN
South/JJ
Korean/JJ
agricultural/JJ
markets/NNS
./.
It/PRP
's/VBZ
appropriate/JJ
for/IN
U.S./NNP
officials/NNS
to/TO
keep/VB
hammering/VBG
for/IN
more/RBR
open/JJ
trade/NN
policies/NNS
,/,
as/IN
U.S./NNP
Trade/NNP
Representative/NNP
Carla/NNP
Hills/NNP
did/VBD
in/IN
Seoul/NNP
last/JJ
week/NN
./.
But/CC
there/EX
's/VBZ
also/RB
sometimes/RB
a/DT
tendency/NN
in/IN
American/JJ
political/JJ
circles/NNS
to/TO
pick/VB
especially/RB
on/IN
South/NNP
Korea/NNP
,/,
out/IN
of/IN
frustration/NN
over/IN
our/PRP$
inability/NN
to/TO
do/VB
much/RB
about/IN
Japan/NNP
./.
That/DT
's/VBZ
counterproductive/JJ
./.
Most/RBS
importantly/RB
,/,
it/PRP
's/VBZ
time/NN
for/IN
American/JJ
policy-makers/NNS
to/TO
better/RB
appreciate/VB
that/IN
our/PRP$
economic/JJ
future/NN
rests/VBZ
more/RBR
with/IN
Asia/NNP
--/:
Seoul/NNP
as/RB
well/RB
as/IN
Tokyo/NNP
--/:
than/IN
anyplace/RB
else/RB
./.
The/DT
U.S./NNP
always/RB
ought/MD
to/TO
stand/VB
up/IN
for/IN
its/PRP$
interests/NNS
,/,
but/CC
it/PRP
's/VBZ
essential/JJ
that/IN
U.S./NNP
officials/NNS
have/VBP
an/DT
appreciation/NN
of/IN
the/DT
politics/NNS
and/CC
history/NN
of/IN
our/PRP$
allies/NNS
./.
In/IN
the/DT
upper/JJ
echelons/NNS
of/IN
the/DT
Roh/NNP
Tae/NNP
Woo/NNP
's/POS
government/NN
,/,
they/PRP
're/VBP
still/RB
buzzing/VBG
about/IN
Commerce/NNP
Secretary/NNP
Mosbacher/NNP
's/POS
trip/NN
to/TO
South/NNP
Korea/NNP
earlier/RBR
this/DT
year/NN
./.
It/PRP
seems/VBZ
he/PRP
learned/VBD
,/,
for/IN
the/DT
first/JJ
time/NN
,/,
that/IN
South/NNP
Korea/NNP
had/VBD
been/VBN
occupied/VBN
for/IN
decades/NNS
by/IN
Japan/NNP
./.
Bolstered/VBN
by/IN
a/DT
robust/JJ
long-distance/NN
business/NN
,/,
the/DT
telephone/NN
industry/NN
is/VBZ
expected/VBN
to/TO
post/VB
a/DT
healthy/JJ
profit/NN
increase/NN
for/IN
the/DT
third/JJ
quarter/NN
./.
Analysts/NNS
estimate/VBP
that/IN
third-quarter/NN
earnings/NNS
for/IN
the/DT
industry/NN
will/MD
increase/VB
as/RB
much/RB
as/IN
19/CD
%/NN
from/IN
the/DT
year-earlier/JJ
period/NN
./.
If/IN
so/RB
,/,
their/PRP$
cumulative/JJ
earnings/NNS
could/MD
hit/VB
$/$
4.12/CD
billion/CD
./.
Most/JJS
of/IN
the/DT
earnings/NNS
growth/NN
,/,
however/RB
,/,
will/MD
come/VB
from/IN
the/DT
long-distance/NN
sector/NN
./.
American/NNP
Telephone/NNP
&/CC
Telegraph/NNP
Co./NNP
is/VBZ
expected/VBN
to/TO
post/VB
a/DT
profit/NN
increase/NN
of/IN
about/IN
18/CD
%/NN
and/CC
MCI/NNP
Communications/NNPS
Corp./NNP
's/POS
earnings/NNS
are/VBP
expected/VBN
to/TO
surge/VB
58/CD
%/NN
./.
United/NNP
Telecommunications/NNPS
Inc./NNP
reported/VBD
last/JJ
Wednesday/NNP
that/IN
third-quarter/NN
net/JJ
income/NN
climbed/VBD
75/CD
%/NN
to/TO
$/$
94.6/CD
million/CD
,/,
or/CC
90/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
1.93/CD
billion/CD
./.
United/NNP
Telecom/NNP
's/POS
Sprint/NNP
unit/NN
posted/VBD
operating/VBG
profit/NN
of/IN
$/$
60/CD
million/CD
./.
Paul/NNP
Aran/NNP
,/,
a/DT
telecommunications/NNS
analyst/NN
with/IN
Bear/NNP
,/,
Stearns/NNP
&/CC
Co./NNP
,/,
said/VBD
the/DT
long-distance/NN
companies/NNS
have/VBP
been/VBN
buoyed/VBN
by/IN
strong/JJ
growth/NN
in/IN
the/DT
facsimile/NN
and/CC
data-service/JJ
business/NN
./.
He/PRP
said/VBD
declining/VBG
long-distance/NN
prices/NNS
also/RB
have/VBP
helped/VBN
stimulate/VB
usage/NN
./.
The/DT
local/JJ
telephone/NN
companies/NNS
,/,
however/RB
,/,
are/VBP
n't/RB
expected/VBN
to/TO
fare/VB
as/IN
well/RB
./.
Growth/NN
is/VBZ
predicted/VBN
to/TO
be/VB
in/IN
the/DT
1/CD
%/NN
to/TO
2/CD
%/NN
range/NN
for/IN
most/JJS
companies/NNS
,/,
with/IN
Southern/NNP
New/NNP
England/NNP
Telephone/NNP
and/CC
GTE/NNP
Corp./NNP
posting/VBG
profit/NN
increases/NNS
in/IN
the/DT
neighborhood/NN
of/IN
10/CD
%/NN
./.
``/``
The/DT
long-distance/NN
companies/NNS
have/VBP
kept/VBN
their/PRP$
momentum/NN
,/,
''/''
says/VBZ
Robert/NNP
Morris/NNP
III/NNP
,/,
a/DT
telecommunications/NNS
analyst/NN
with/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co./NNP
,/,
``/``
while/IN
the/DT
pace/NN
of/IN
growth/NN
for/IN
the/DT
local/JJ
telephone/NN
companies/NNS
is/VBZ
slowing/VBG
./.
''/''
That/DT
's/VBZ
especially/RB
true/JJ
for/IN
the/DT
regional/JJ
Bell/NNP
companies/NNS
./.
He/PRP
said/VBD
regulation/NN
is/VBZ
primarily/RB
responsible/JJ
for/IN
the/DT
Bells/NNP
'/POS
dull/JJ
earnings/NNS
growth/NN
./.
Most/JJS
companies/NNS
have/VBP
reached/VBN
their/PRP$
maximum/JJ
allowed/VBN
earnings/NNS
ceilings/NNS
,/,
which/WDT
are/VBP
set/VBN
by/IN
regulators/NNS
./.
``/``
This/DT
signals/VBZ
the/DT
need/NN
for/IN
regulatory/JJ
change/NN
,/,
''/''
Mr./NNP
Morris/NNP
said/VBD
./.
Pacific/NNP
Telesis/NNP
Group/NNP
,/,
which/WDT
is/VBZ
expected/VBN
to/TO
post/VB
earnings/NNS
of/IN
about/IN
75/CD
cents/NNS
a/DT
share/NN
,/,
obtained/VBN
regulatory/JJ
relief/NN
from/IN
California/NNP
regulators/VBZ
last/JJ
week/NN
./.
Under/IN
the/DT
plan/NN
,/,
the/DT
company/NN
is/VBZ
allowed/VBN
to/TO
earn/VB
more/JJR
if/IN
it/PRP
can/MD
operate/VB
more/RBR
efficiently/RB
./.
In/IN
the/DT
year-earlier/JJ
quarter/NN
,/,
Pacific/NNP
Telesis/NNP
earned/VBD
$/$
318/CD
million/CD
,/,
or/CC
75/CD
cents/NNS
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
2.38/CD
billion/CD
./.
Analysts/NNS
expect/VBP
installations/NNS
of/IN
new/JJ
telephone/NN
lines/NNS
to/TO
grow/VB
about/IN
3/CD
%/NN
./.
However/RB
,/,
GTE/NNP
,/,
BellSouth/NNP
Corp./NNP
and/CC
Pacific/NNP
Telesis/NNP
,/,
which/WDT
operate/VBP
in/IN
territories/NNS
with/IN
hearty/JJ
economies/NNS
,/,
are/VBP
expected/VBN
to/TO
report/VB
new-telephone-line/NN
growth/NN
in/IN
the/DT
range/NN
of/IN
4/CD
%/NN
to/TO
5/CD
%/NN
./.
Nynex/NNP
Corp./NNP
's/POS
profits/NNS
could/MD
begin/VB
to/TO
show/VB
signs/NNS
of/IN
weakening/NN
from/IN
the/DT
effects/NNS
of/IN
a/DT
nearly/RB
three-month/JJ
strike/NN
,/,
while/IN
other/JJ
Bell/NNP
companies/NNS
,/,
such/JJ
as/IN
Ameritech/NNP
and/CC
Southwestern/NNP
Bell/NNP
Corp./NNP
,/,
could/MD
be/VB
hurt/VBN
in/IN
the/DT
quarter/NN
by/IN
one-time/JJ
charges/NNS
associated/VBN
with/IN
the/DT
settlement/NN
of/IN
new/JJ
union/NN
contracts/NNS
./.
Mr./NNP
Aran/NNP
,/,
the/DT
Bear/NNP
Stearns/NNP
analyst/NN
,/,
said/VBD
that/IN
generally/RB
,/,
after/IN
eight/CD
weeks/NNS
,/,
``/``
A/DT
strike/NN
starts/VBZ
hurting/VBG
earnings/NNS
./.
I/PRP
'm/VBP
waiting/VBG
to/TO
see/VB
what/WP
the/DT
impact/NN
is/VBZ
on/IN
Nynex/NNP
./.
''/''
Analysts/NNS
predict/VBP
Nynex/NNP
earnings/NNS
will/MD
be/VB
about/IN
$/$
1.57/CD
a/DT
share/NN
,/,
compared/VBN
with/IN
$/$
1.72/CD
a/DT
share/NN
a/DT
year/NN
earlier/RBR
,/,
when/WRB
the/DT
company/NN
earned/VBD
$/$
338.9/CD
million/CD
on/IN
sales/NNS
of/IN
$/$
3.18/CD
billion/CD
./.
The/DT
independent/JJ
telephone/NN
companies/NNS
also/RB
may/MD
post/VB
third-quarter/NN
results/NNS
that/WDT
trail/VBP
the/DT
comparable/JJ
year-ago/JJ
period/NN
./.
Rochester/NNP
Telephone/NNP
Co./NNP
,/,
for/IN
instance/NN
,/,
said/VBD
it/PRP
expects/VBZ
third-quarter/NN
earnings/NNS
to/TO
be/VB
``/``
somewhat/RB
lower/JJR
''/''
than/IN
the/DT
year-earlier/JJ
quarter/NN
--/:
even/RB
though/IN
the/DT
company/NN
expects/VBZ
to/TO
post/VB
an/DT
extraordinary/JJ
gain/NN
of/IN
50/CD
cents/NNS
during/IN
the/DT
period/NN
./.
The/DT
company/NN
said/VBD
higher/JJR
expenses/NNS
and/CC
competitive/JJ
pressures/NNS
hampered/VBD
earnings/NNS
./.
For/IN
the/DT
1988/CD
third/JJ
quarter/NN
,/,
Rochester/NNP
Telephone/NNP
reported/VBD
a/DT
net/JJ
income/NN
of/IN
$/$
12.9/CD
million/CD
,/,
or/CC
$/$
1.10/CD
a/DT
share/NN
,/,
on/IN
revenue/NN
of/IN
$/$
120.2/CD
million/CD
./.
The/DT
tug/NN
of/IN
war/NN
between/IN
Warner/NNP
Communications/NNPS
Inc./NNP
and/CC
Sony/NNP
Corp./NNP
over/IN
movie/NN
producers/NNS
Peter/NNP
Guber/NNP
and/CC
Jon/NNP
Peters/NNP
has/VBZ
exploded/VBN
into/IN
a/DT
legal/JJ
battle/NN
that/WDT
could/MD
prove/VB
an/DT
embarrassing/VBG
setback/NN
to/TO
Sony/NNP
's/POS
plans/NNS
to/TO
enter/VB
the/DT
U.S./NNP
movie/NN
business/NN
./.
On/IN
Friday/NNP
,/,
after/IN
two/CD
weeks/NNS
of/IN
fruitless/JJ
settlement/NN
talks/NNS
,/,
Warner/NNP
filed/VBD
suit/NN
in/IN
Los/NNP
Angeles/NNP
Superior/NNP
Court/NNP
against/IN
Sony/NNP
and/CC
Guber/NNP
Peters/NNP
Entertainment/NNP
Co./NNP
,/,
charging/VBG
Sony/NNP
with/IN
inducing/VBG
the/DT
two/CD
producers/NNS
to/TO
breach/VB
a/DT
five-year/JJ
contract/NN
with/IN
Warner/NNP
./.
The/DT
suit/NN
seeks/VBZ
$/$
1/CD
billion/CD
in/IN
damages/NNS
and/CC
an/DT
injunction/NN
barring/VBG
Messrs./NNP
Guber/NNP
and/CC
Peters/NNP
from/IN
taking/VBG
the/DT
top/JJ
management/NN
posts/NNS
at/IN
Columbia/NNP
Pictures/NNPS
Entertainment/NNP
Inc/NNP
./.
As/IN
previously/RB
reported/VBN
,/,
Sony/NNP
has/VBZ
agreed/VBN
to/TO
pay/VB
$/$
3.4/CD
billion/CD
to/TO
acquire/VB
Columbia/NNP
and/CC
separately/RB
has/VBZ
agreed/VBN
to/TO
pay/VB
$/$
200/CD
million/CD
for/IN
Guber/NNP
Peters/NNP
Entertainment/NNP
to/TO
obtain/VB
the/DT
services/NNS
of/IN
its/PRP$
two/CD
co-chief/JJ
executives/NNS
./.
Sony/NNP
and/CC
Guber/NNP
Peters/NNP
promptly/RB
countersued/VBD
,/,
charging/VBG
Warner/NNP
with/IN
attempting/VBG
to/TO
interfere/VB
in/IN
Sony/NNP
's/POS
acquisition/NN
of/IN
the/DT
two/CD
companies/NNS
and/CC
with/IN
falsely/RB
asserting/VBG
that/IN
the/DT
Guber/NNP
Peters/NNP
agreement/NN
with/IN
Warner/NNP
prevents/VBZ
them/PRP
from/IN
accepting/VBG
the/DT
senior/JJ
management/NN
posts/NNS
at/IN
Columbia/NNP
./.
At/IN
issue/NN
in/IN
the/DT
lawsuits/NNS
is/VBZ
the/DT
contract/NN
signed/VBD
last/JJ
March/NNP
by/IN
Messrs./NNP
Guber/NNP
and/CC
Peters/NNP
that/WDT
requires/VBZ
the/DT
two/CD
to/TO
make/VB
movies/NNS
exclusively/RB
for/IN
Warner/NNP
for/IN
the/DT
next/JJ
five/CD
years/NNS
./.
Sony/NNP
and/CC
Messrs./NNP
Guber/NNP
and/CC
Peters/NNP
maintain/VBP
that/IN
the/DT
contract/NN
does/VBZ
n't/RB
prohibit/VB
taking/VBG
an/DT
executive/JJ
post/NN
at/IN
another/DT
studio/NN
./.
Moreover/RB
,/,
they/PRP
assert/VBP
,/,
the/DT
producers/NNS
have/VBP
an/DT
oral/JJ
agreeement/NN
with/IN
Warner/NNP
Bros./NNP
studio/NN
executives/NNS
that/WDT
gives/VBZ
them/PRP
the/DT
right/RB
to/TO
``/``
terminate/VB
the/DT
producer/NN
relationship/NN
in/IN
the/DT
event/NN
they/PRP
were/VBD
given/VBN
and/CC
chose/VBD
to/TO
accept/VB
the/DT
opportunity/NN
to/TO
become/VB
senior/JJ
executives/NNS
of/IN
a/DT
motion/NN
picture/NN
studio/NN
,/,
''/''
according/VBG
to/TO
their/PRP$
countersuit/NN
./.
Warner/NNP
,/,
for/IN
its/PRP$
part/NN
,/,
maintains/VBZ
that/IN
the/DT
written/VBN
agreement/NN
prevents/VBZ
Messrs./NNP
Guber/NNP
and/CC
Peters/NNP
from/IN
doing/VBG
anything/NN
else/RB
in/IN
the/DT
motion/NN
picture/NN
business/NN
./.
Warner/NNP
says/VBZ
in/IN
its/PRP$
suit/NN
that/IN
Sony/NNP
``/``
has/VBZ
unethically/RB
and/CC
illegally/RB
sought/VBN
to/TO
steal/VB
the/DT
services/NNS
of/IN
Guber/NNP
and/CC
Peters/NNP
and/CC
injure/VB
Warner/NNP
as/IN
a/DT
major/JJ
competitor/NN
of/IN
Columbia/NNP
./.
''/''
Moreover/RB
,/,
Warner/NNP
says/VBZ
,/,
Sony/NNP
enticed/VBD
the/DT
producers/NNS
with/IN
``/``
unprecedented/JJ
financial/JJ
rewards/NNS
to/TO
breach/VB
their/PRP$
binding/VBG
contractual/JJ
commitments/NNS
to/TO
Warner/NNP
./.
''/''
Warner/NNP
also/RB
names/VBZ
in/IN
its/PRP$
suit/NN
the/DT
two/CD
producers/NNS
,/,
Sony/NNP
Corp./NNP
of/IN
America/NNP
Vice/NNP
Chairman/NNP
Michael/NNP
Schulof/NNP
,/,
and/CC
Walter/NNP
Yetnikoff/NNP
,/,
head/NN
of/IN
Sony/NNP
's/POS
CBS/NNP
Records/NNPS
unit/NN
./.
Sony/NNP
responded/VBD
in/IN
its/PRP$
countersuit/NN
by/IN
charging/VBG
Warner/NNP
,/,
its/PRP$
chief/NN
executive/NN
Steven/NNP
J./NNP
Ross/NNP
,/,
and/CC
Warner/NNP
Bros./NNP
unit/NN
chairman/NN
Robert/NNP
Daly/NNP
and/CC
President/NNP
Terry/NNP
Semel/NNP
with/IN
embarking/VBG
on/IN
an/DT
unlawful/JJ
scheme/NN
to/TO
interfere/VB
with/IN
and/CC
disrupt/VB
Sony/NNP
's/POS
acquisitions/NNS
./.
Warner/NNP
,/,
which/WDT
is/VBZ
in/IN
the/DT
process/NN
of/IN
being/VBG
acquired/VBN
by/IN
Time/NNP
Warner/NNP
Inc./NNP
,/,
is/VBZ
attempting/VBG
to/TO
``/``
sabotage/VB
''/''
Sony/NNP
's/POS
efforts/NNS
as/IN
part/NN
of/IN
a/DT
``/``
plan/NN
and/CC
scheme/NN
to/TO
dominate/VB
and/CC
control/VB
the/DT
entertainment/NN
business/NN
,/,
''/''
the/DT
countersuit/NN
from/IN
Sony/NNP
and/CC
Guber/NNP
Peters/NNP
adds/VBZ
./.
Warner/NNP
also/RB
appears/VBZ
to/TO
be/VB
trying/VBG
to/TO
embarrass/VB
Sony/NNP
by/IN
accusing/VBG
the/DT
Japanese/JJ
company/NN
's/POS
U.S/NNP
executives/NNS
,/,
Messrs./NNP
Schulof/NNP
and/CC
Yetnikoff/NNP
,/,
of/IN
dishonorable/JJ
dealings/NNS
./.
In/IN
its/PRP$
suit/NN
,/,
Warner/NNP
says/VBZ
that/IN
Mr./NNP
Ross/NNP
warned/VBD
Sony/NNP
's/POS
Mr./NNP
Schulof/NNP
on/IN
Sept./NNP
26/CD
at/IN
a/DT
dinner/NN
in/IN
Washington/NNP
,/,
``/``
with/IN
Guber/NNP
Peters/NNP
in/IN
mind/NN
''/''
that/IN
in/IN
the/DT
U.S./NNP
``/``
it/PRP
is/VBZ
essential/JJ
that/IN
corporations/NNS
honor/VBP
written/VBN
contracts/NNS
and/CC
do/VBP
not/RB
induce/VB
breach/NN
of/IN
contracts/NNS
by/IN
others/NNS
./.
''/''
Sony/NNP
went/VBD
ahead/RB
the/DT
next/JJ
day/NN
anyway/RB
and/CC
executed/VBD
its/PRP$
own/JJ
five-year/JJ
agreement/NN
with/IN
the/DT
producers/NNS
and/CC
agreed/VBD
to/TO
buy/VB
their/PRP$
company/NN
,/,
the/DT
suit/NN
adds/VBZ
./.
Moreover/RB
,/,
the/DT
suit/NN
adds/VBZ
that/IN
Sony/NNP
initially/RB
said/VBD
it/PRP
would/MD
n't/RB
buy/VB
Guber/NNP
Peters/NNP
unless/IN
the/DT
Warner/NNP
contract/NN
was/VBD
settled/VBN
./.
On/IN
Tuesday/NNP
,/,
although/IN
a/DT
settlement/NN
was/VBD
n't/RB
reached/VBN
,/,
Sony/NNP
publicly/RB
announced/VBD
it/PRP
would/MD
acquire/VB
Guber/NNP
Peters/NNP
./.
``/``
Sony/NNP
has/VBZ
thus/RB
knowingly/RB
and/CC
willfully/RB
,/,
and/CC
over/IN
Warner/NNP
's/POS
protests/NNS
,/,
induced/VBN
Guber/NNP
and/CC
Peters/NNP
to/TO
repudiate/VB
their/PRP$
contract/NN
with/IN
Warner/NNP
,/,
''/''
the/DT
suit/NN
says/VBZ
./.
Warner/NNP
's/POS
decision/NN
to/TO
file/VB
suit/NN
in/IN
the/DT
wake/NN
of/IN
its/PRP$
failure/NN
to/TO
reach/VB
a/DT
settlement/NN
with/IN
Sony/NNP
did/VBD
n't/RB
surprise/VB
executives/NNS
at/IN
rival/JJ
studios/NNS
,/,
who/WP
say/VBP
Warner/NNP
is/VBZ
only/RB
protecting/VBG
its/PRP$
own/JJ
interests/NNS
./.
The/DT
outcome/NN
of/IN
the/DT
legal/JJ
battle/NN
,/,
they/PRP
add/VBP
,/,
could/MD
redefine/VB
contractual/JJ
relationships/NNS
in/IN
Hollywood/NNP
,/,
where/WRB
the/DT
unwritten/JJ
rule/NN
has/VBZ
often/RB
been/VBN
that/IN
contracts/NNS
were/VBD
made/VBN
to/TO
be/VB
broken/VBN
./.
In/IN
Warner/NNP
's/POS
case/NN
,/,
the/DT
studio/NN
obviously/RB
regards/VBZ
the/DT
relationship/NN
with/IN
Guber/NNP
Peters/NNP
as/IN
a/DT
crucial/JJ
factor/NN
in/IN
Warner/NNP
's/POS
recent/JJ
success/NN
and/CC
a/DT
central/JJ
part/NN
of/IN
its/PRP$
future/JJ
plans/NNS
./.
Warner/NNP
has/VBZ
relied/VBN
heavily/RB
on/IN
the/DT
two/CD
to/TO
find/VB
and/CC
produce/VB
movies/NNS
for/IN
the/DT
studio/NN
,/,
including/VBG
this/DT
summer/NN
's/POS
hit/VBN
``/``
Batman/NNP
./.
''/''
Warner/NNP
says/VBZ
in/IN
its/PRP$
suit/NN
that/IN
``/``
Guber/NNP
and/CC
Peters/NNP
claim/VBP
to/TO
have/VB
generated/VBN
over/IN
one-half/JJ
billion/CD
dollars/NNS
in/IN
profits/NNS
for/IN
Warner/NNP
from/IN
combined/VBN
projects/NNS
,/,
''/''
a/DT
claim/NN
Warner/NNP
does/VBZ
n't/RB
dispute/VB
./.
And/CC
Warner/NNP
says/VBZ
it/PRP
is/VBZ
currently/RB
financing/VBG
about/IN
50/CD
new/JJ
projects/NNS
being/VBG
developed/VBN
by/IN
the/DT
two/CD
producers/NNS
./.
Under/IN
an/DT
earlier/JJR
agreement/NN
with/IN
Warner/NNP
,/,
the/DT
producers/NNS
were/VBD
allowed/VBN
to/TO
make/VB
movies/NNS
elsewhere/RB
./.
For/IN
example/NN
,/,
they/PRP
made/VBD
the/DT
hit/NN
``/``
Rainman/NNP
''/''
for/IN
MGM\/UA/NNP
Communications/NNPS
Co/NNP
./.
But/CC
when/WRB
Warner/NNP
signed/VBD
a/DT
new/JJ
agreement/NN
with/IN
the/DT
two/CD
in/IN
March/NNP
,/,
the/DT
terms/NNS
specifically/RB
prohibited/VBD
them/PRP
from/IN
serving/VBG
as/IN
producers/NNS
or/CC
executive/JJ
producers/NNS
of/IN
movies/NNS
for/IN
any/DT
other/JJ
studio/NN
./.
Sony/NNP
and/CC
the/DT
Guber/NNP
Peters/NNP
executives/NNS
say/VBP
in/IN
their/PRP$
countersuit/NN
,/,
however/RB
,/,
that/IN
the/DT
new/JJ
contract/NN
eliminated/VBD
language/NN
barring/VBG
the/DT
two/CD
from/IN
serving/VBG
``/``
in/IN
any/DT
other/JJ
capacity/NN
''/''
in/IN
the/DT
motion/NN
picture/NN
business/NN
./.
And/CC
they/PRP
appear/VBP
to/TO
be/VB
relying/VBG
heavily/RB
on/IN
an/DT
alleged/JJ
``/``
oral/JJ
agreement/NN
''/''
the/DT
two/CD
producers/NNS
claim/VBP
to/TO
have/VB
with/IN
Warner/NNP
that/WDT
would/MD
let/VB
them/PRP
out/IN
of/IN
their/PRP$
written/VBN
contract/NN
in/IN
the/DT
event/NN
that/IN
an/DT
actual/JJ
executive/NN
post/NN
at/IN
another/DT
company/NN
became/VBD
available/JJ
./.
In/IN
their/PRP$
countersuit/NN
,/,
they/PRP
say/VBP
that/IN
on/IN
two/CD
previous/JJ
occasions/NNS
--/:
once/RB
in/IN
1987/CD
when/WRB
they/PRP
considered/VBD
a/DT
post/NN
at/IN
Columbia/NNP
,/,
and/CC
once/RB
when/WRB
Messrs./NNP
Guber/NNP
and/CC
Peters/NNP
tried/VBD
to/TO
buy/VB
a/DT
stake/NN
in/IN
MGM\/UA/NNP
in/IN
1988/CD
--/:
Warner/NNP
was/VBD
prepared/VBN
to/TO
release/VB
them/PRP
from/IN
their/PRP$
contract/NN
./.
The/DT
countersuit/NN
also/RB
charges/VBZ
Warner/NNP
with/IN
making/VBG
the/DT
oral/JJ
agreement/NN
to/TO
``/``
falsely/RB
induce/VB
''/''
them/PRP
into/IN
a/DT
new/JJ
written/VBN
contract/NN
in/IN
1989/CD
./.
Moreover/RB
,/,
they/PRP
say/VBP
,/,
Warner/NNP
is/VBZ
trying/VBG
to/TO
cheat/VB
them/PRP
out/IN
of/IN
``/``
a/DT
unique/JJ
business/NN
opportunity/NN
''/''
and/CC
the/DT
fulfilment/NN
of/IN
their/PRP$
``/``
long-term/JJ
dream/NN
''/''
to/TO
run/VB
their/PRP$
own/JJ
studio/NN
./.
But/CC
entertainment/NN
industry/NN
executives/NNS
say/VBP
that/IN
the/DT
new/JJ
contract/NN
was/VBD
signed/VBN
after/IN
Guber/NNP
Peters/NNP
efforts/NNS
to/TO
take/VB
over/IN
MGM/NNP
failed/VBD
and/CC
that/IN
Warner/NNP
may/MD
argue/VB
in/IN
court/NN
that/IN
the/DT
producers/NNS
'/POS
willingness/NN
to/TO
sign/VB
a/DT
new/JJ
long-term/JJ
contract/NN
signaled/VBD
the/DT
end/NN
of/IN
their/PRP$
search/NN
for/IN
a/DT
movie/NN
studio/NN
./.
Mr./NNP
Ross/NNP
and/CC
his/PRP$
team/NN
at/IN
Warner/NNP
appear/VBP
to/TO
view/VB
the/DT
move/NN
by/IN
the/DT
two/CD
producers/NNS
to/TO
Sony/NNP
as/IN
a/DT
personal/JJ
betrayal/NN
after/IN
years/NNS
of/IN
support/NN
and/CC
friendship/NN
./.
``/``
Warner/NNP
has/VBZ
been/VBN
nurturing/VBG
its/PRP$
relationship/NN
with/IN
Guber/NNP
and/CC
Peters/NNP
since/IN
1972/CD
,/,
long/RB
before/IN
their/PRP$
recent/JJ
success/NN
,/,
''/''
the/DT
Warner/NNP
suit/NN
says/VBZ
./.
That/DT
success/NN
,/,
the/DT
suit/NN
adds/VBZ
,/,
``/``
is/VBZ
due/JJ
in/IN
large/JJ
measure/NN
to/TO
the/DT
trust/NN
and/CC
confidence/NN
that/IN
Warner/NNP
has/VBZ
reposed/VBN
in/IN
these/DT
producers/NNS
,/,
even/RB
in/IN
the/DT
early/JJ
years/NNS
of/IN
the/DT
relationship/NN
when/WRB
the/DT
creative/JJ
partnership/NN
was/VBD
not/RB
particularly/RB
profitable/JJ
for/IN
Warner/NNP
./.
''/''
Warner/NNP
,/,
whose/WP$
executives/NNS
are/VBP
the/DT
highest/RB
paid/VBN
in/IN
the/DT
entertainment/NN
industry/NN
,/,
also/RB
charges/VBZ
that/IN
Sony/NNP
induced/VBD
the/DT
two/CD
producers/NNS
to/TO
breach/VB
their/PRP$
Warner/NNP
contract/NN
by/IN
offering/VBG
them/PRP
``/``
the/DT
most/RBS
lucrative/JJ
and/CC
expensive/JJ
package/NN
of/IN
financial/JJ
inducements/NNS
in/IN
the/DT
film/NN
industry/NN
,/,
''/''
including/VBG
$/$
2.7/CD
million/CD
each/DT
in/IN
annual/JJ
salary/NN
,/,
deferred/VBN
compensation/NN
of/IN
$/$
50/CD
million/CD
,/,
as/RB
much/RB
as/IN
10/CD
%/NN
of/IN
Columbia/NNP
's/POS
cash/NN
flow/NN
,/,
and/CC
as/RB
much/JJ
as/IN
8/CD
%/NN
of/IN
the/DT
future/JJ
appreciation/NN
of/IN
Columbia/NNP
's/POS
market/NN
value/NN
./.
The/DT
producers/NNS
also/RB
stand/VBP
to/TO
get/VB
more/JJR
than/IN
$/$
50/CD
million/CD
from/IN
their/PRP$
combined/VBN
28/CD
%/NN
stake/NN
in/IN
Guber/NNP
Peters/NNP
Entertainment/NNP
from/IN
Sony/NNP
's/POS
$/$
200/CD
million/CD
offer/NN
for/IN
the/DT
company/NN
./.
In/IN
their/PRP$
countersuit/NN
,/,
Messrs./NNP
Guber/NNP
and/CC
Peters/NNP
say/VBP
they/PRP
seek/VBP
$/$
100/CD
million/CD
in/IN
damages/VBZ
initially/RB
from/IN
Warner/NNP
but/CC
may/MD
seek/VB
a/DT
higher/JJR
amount/NN
later/RB
after/IN
determining/VBG
the/DT
extent/NN
of/IN
damages/NNS
./.
Companies/NNS
listed/VBN
below/IN
reported/VBD
quarterly/JJ
profit/NN
substantially/RB
different/JJ
from/IN
the/DT
average/NN
of/IN
analysts/NNS
'/POS
estimates/NNS
./.
The/DT
companies/NNS
are/VBP
followed/VBN
by/IN
at/IN
least/JJS
three/CD
analysts/NNS
,/,
and/CC
had/VBD
a/DT
minimum/JJ
five-cent/JJ
change/NN
in/IN
actual/JJ
earnings/NNS
per/IN
share/NN
./.
Estimated/VBN
and/CC
actual/JJ
results/NNS
involving/VBG
losses/NNS
are/VBP
omitted/VBN
./.
The/DT
percent/NN
difference/NN
compares/VBZ
actual/JJ
profit/NN
with/IN
the/DT
30-day/JJ
estimate/NN
where/WRB
at/IN
least/JJS
three/CD
analysts/NNS
have/VBP
issues/NNS
forecasts/NNS
in/IN
the/DT
past/JJ
30/CD
days/NNS
./.
Otherwise/RB
,/,
actual/JJ
profit/NN
is/VBZ
compared/VBN
with/IN
the/DT
300-day/JJ
estimate/NN
./.
Source/NN
:/:
Zacks/NNP
Investment/NNP
Research/NNP
McDonnell/NNP
Douglas/NNP
Corp./NNP
received/VBD
a/DT
$/$
54.3/CD
million/CD
Navy/NNP
contract/NN
for/IN
F\/A18/CD
aircraft/NN
for/IN
Kuwait/NNP
./.
Propper/NNP
International/NNP
Inc./NNP
won/VBD
a/DT
$/$
20.2/CD
million/CD
Defense/NNP
Logistics/NNP
Agency/NNP
contract/NN
for/IN
camouflage/NN
trousers/NNS
./.
Altama/NNP
Delta/NNP
Corp./NNP
was/VBD
given/VBN
an/DT
$/$
18.5/CD
million/CD
Defense/NNP
Logistics/NNP
Agency/NNP
contract/NN
for/IN
combat/NN
boots/NNS
./.
Microamerica/NNP
Inc./NNP
said/VBD
its/PRP$
board/NN
authorized/VBD
the/DT
purchase/NN
of/IN
as/RB
many/JJ
as/IN
two/CD
million/CD
,/,
or/CC
15/CD
%/NN
,/,
of/IN
its/PRP$
common/JJ
shares/NNS
outstanding/JJ
./.
The/DT
purchases/NNS
would/MD
be/VB
made/VBN
periodically/RB
on/IN
the/DT
open/JJ
market/NN
or/CC
in/IN
privately/RB
negotiated/VBN
transactions/NNS
,/,
the/DT
company/NN
said/VBD
./.
Microamerica/NNP
,/,
a/DT
distributor/NN
of/IN
personal-computer/NN
products/NNS
,/,
has/VBZ
about/IN
13.5/CD
million/CD
shares/NNS
outstanding/JJ
./.
Advertising/VBG
agencies/NNS
'/POS
third-quarter/NN
earnings/NNS
are/VBP
expected/VBN
to/TO
be/VB
up/IN
modestly/RB
from/IN
a/DT
year/NN
ago/IN
,/,
securities/NNS
analysts/NNS
say/VBP
./.
Andrew/NNP
Wallach/NNP
,/,
an/DT
analyst/NN
at/IN
Drexel/NNP
Burnham/NNP
Lambert/NNP
,/,
is/VBZ
estimating/VBG
Interpublic/NNP
Group/NNP
,/,
for/IN
example/NN
,/,
at/IN
21/CD
cents/NNS
a/DT
share/NN
,/,
up/IN
from/IN
18/CD
cents/NNS
a/DT
share/NN
a/DT
year/NN
ago/IN
./.
Greg/NNP
Ostroff/NNP
,/,
an/DT
analyst/NN
at/IN
Goldman/NNP
Sachs/NNP
,/,
is/VBZ
pegging/VBG
Omnicom/NNP
Group/NNP
at/IN
17/CD
cents/NNS
a/DT
share/NN
,/,
up/IN
from/IN
15/CD
cents/NNS
a/DT
share/NN
,/,
and/CC
Foote/NNP
,/,
Cone/NNP
&/CC
Belding/NNP
Communications/NNPS
Inc./NNP
at/IN
55/CD
cents/NNS
a/DT
share/NN
,/,
up/IN
from/IN
46/CD
cents/NNS
./.
Analysts/NNS
note/VBP
,/,
however/RB
,/,
that/IN
the/DT
third/JJ
period/NN
is/VBZ
a/DT
minor/JJ
quarter/NN
in/IN
terms/NNS
of/IN
absolute/JJ
profits/NNS
./.
Those/DT
who/WP
watch/VBP
Madison/NNP
Avenue/NNP
say/VBP
this/DT
period/NN
,/,
along/IN
with/IN
the/DT
first/JJ
quarter/NN
,/,
is/VBZ
traditionally/RB
weak/JJ
./.
The/DT
fourth/JJ
quarter/NN
is/VBZ
where/WRB
the/DT
real/JJ
impact/NN
is/VBZ
made/VBN
./.
``/``
We/PRP
tend/VBP
not/RB

to/TO
read/VB
much/RB
into/IN
third-quarter/NN
earnings/NNS
,/,
''/''
Mr./NNP
Ostroff/NNP
says/VBZ
./.
Also/RB
notable/JJ
is/VBZ
the/DT
fact/NN
that/IN
Saatchi/NNP
&/CC
Saatchi/NNP
Co./NNP
and/CC
WPP/NNP
Group/NNP
PLC/NNP
,/,
two/CD
British/JJ
giants/NNS
that/WDT
are/VBP
principal/JJ
players/NNS
in/IN
the/DT
advertising/NN
business/NN
,/,
do/VBP
n't/RB
report/VB
quarterly/JJ
earnings/NNS
./.
In/IN
the/DT
industry/NN
overall/NN
,/,
``/``
profits/NNS
will/MD
increase/VB
unless/IN
revenues/NNS
are/VBP
disastrously/RB
lower/JJR
,/,
''/''
said/VBD
Alan/NNP
Gottesman/NNP
,/,
an/DT
analyst/NN
at/IN
PaineWebber/NNP
Inc./NNP
,/,
New/NNP
York/NNP
./.
``/``
There/EX
are/VBP
no/RB
external/JJ
indications/NNS
''/''
to/TO
indicate/VB
that/DT
will/MD
be/VB
the/DT
case/NN
,/,
he/PRP
said/VBD
./.
Mr./NNP
Gottesman/NNP
noted/VBD
that/IN
the/DT
employee/NN
count/NN
for/IN
the/DT
industry/NN
is/VBZ
down/IN
and/CC
that/IN
most/JJS
agencies/NNS
are/VBP
watching/VBG
staffing/VBG
levels/NNS
in/IN
a/DT
bid/NN
to/TO
closely/RB
monitor/VB
costs/NNS
./.
Others/NNS
are/VBP
cautiously/RB
watching/VBG
the/DT
value/NN
of/IN
the/DT
dollar/NN
overseas/RB
./.
``/``
From/IN
where/WRB
I/PRP
sit/VBP
,/,
the/DT
biggest/JJS
issue/NN
for/IN
the/DT
U.S./NNP
agencies/NNS
is/VBZ
the/DT
dollar/NN
,/,
''/''
said/VBD
Emma/NNP
Hill/NNP
,/,
an/DT
analyst/NN
at/IN
Wertheim/NNP
Schroder/NNP
&/CC
Co./NNP
,/,
New/NNP
York/NNP
./.
``/``
For/IN
the/DT
U.S./NNP
companies/NNS
,/,
the/DT
risk/NN
is/VBZ
one/CD
of/IN
disappointment/NN
versus/CC
better-than-expected/NN
because/IN
of/IN
the/DT
dollar/NN
./.
''/''
Ad/NN
agencies/NNS
rely/VBP
heavily/RB
on/IN
business/NN
overseas/NN
for/IN
their/PRP$
bottom/NN
line/NN
./.
The/DT
strength/NN
of/IN
the/DT
dollar/NN
will/MD
hurt/VB
the/DT
reporting/NN
of/IN
foreign/JJ
earnings/NNS
,/,
many/JJ
analysts/NNS
said/VBD
./.
Some/DT
agencies/NNS
,/,
including/VBG
Interpublic/NNP
Group/NNP
's/POS
Lintas/NNP
and/CC
Saatchi/NNP
&/CC
Saatchi/NNP
's/POS
Backer/NNP
Spielvogel/NNP
Bates/NNP
,/,
have/VBP
said/VBN
that/IN
their/PRP$
clients/NNS
are/VBP
spending/VBG
less/RBR
than/IN
they/PRP
had/VBD
expected/VBN
./.
Few/JJ
agencies/NNS
are/VBP
reporting/VBG
that/IN
their/PRP$
clients/NNS
'/POS
ad/NN
budgets/NNS
are/VBP
expanding/VBG
./.
All/DT
eyes/NNS
,/,
however/RB
,/,
are/VBP
on/IN
the/DT
fourth/JJ
quarter/NN
and/CC
to/TO
reporting/VBG
by/IN
the/DT
giant/JJ
British/JJ
companies/NNS
./.
``/``
Saatchi/NNP
&/CC
Saatchi/NNP
is/VBZ
having/VBG
a/DT
very/RB
tough/JJ
year/NN
,/,
''/''
Drexel/NNP
Burnham/NNP
's/POS
Mr./NNP
Wallach/NNP
said/VBD
./.
``/``
It/PRP
's/VBZ
real/JJ
guesswork/NN
figuring/VBG
out/IN
what/WP
they/PRP
'll/MD
earn/VB
./.
''/''
That/DT
agency/NN
,/,
rumored/VBD
as/IN
a/DT
takeover/NN
candidate/NN
,/,
earlier/RBR
this/DT
year/NN
said/VBD
pretax/NN
profit/NN
for/IN
1989/CD
would/MD
trail/VB
1988/CD
's/POS
already/RB
disappointing/JJ
level/NN
./.
For/IN
WPP/NNP
Group/NNP
,/,
on/IN
the/DT
other/JJ
hand/NN
,/,
most/JJS
analysts/NNS
are/VBP
looking/VBG
for/IN
margin/NN
improvement/NN
and/CC
good/JJ
results/NNS
considering/VBG
its/PRP$
acquisition/NN
earlier/RBR
this/DT
year/NN
of/IN
Ogilvy/NNP
Group/NNP
./.
The/DT
involvement/NN
of/IN
units/NNS
of/IN
two/CD
major/JJ
U.S./NNP
banks/NNS
in/IN
separate/JJ
loans/NNS
to/TO
China/NNP
has/VBZ
signaled/VBN
a/DT
growing/VBG
willingness/NN
among/IN
foreign/JJ
bankers/NNS
to/TO
resume/VB
lending/VBG
to/TO
the/DT
Beijing/NNP
government/NN
./.
One/CD
of/IN
the/DT
units/NNS
,/,
BT/NNP
Asia/NNP
Ltd./NNP
,/,
a/DT
subsidiary/NN
of/IN
Bankers/NNPS
Trust/NNP
New/NNP
York/NNP
Corp./NNP
,/,
this/DT
week/NN
arranged/VBD
the/DT
syndication/NN
of/IN
a/DT
$/$
50/CD
million/CD
,/,
five-year/JJ
loan/NN
to/TO
Shortridge/NNP
Ltd./NNP
,/,
which/WDT
is/VBZ
owned/VBN
by/IN
China/NNP
International/NNP
Trust/NNP
&/CC
Investment/NNP
Corp/NNP
./.
Holdings/NNS
Citic/JJ
./.
The/DT
loan/NN
will/MD
be/VB
used/VBN
for/IN
Shortridge/NNP
's/POS
share/NN
of/IN
the/DT
purchase/NN
of/IN
a/DT
satellite/NN
,/,
a/DT
BT/NNP
Asia/NNP
director/NN
said/VBD
./.
The/DT
other/JJ
unit/NN
,/,
Chase/NNP
Manhattan/NNP
Asia/NNP
Ltd./NNP
,/,
a/DT
Hong/NNP
Kong/NNP
subsidiary/NN
of/IN
Chase/NNP
Manhattan/NNP
Corp./NNP
,/,
of/IN
New/NNP
York/NNP
,/,
said/VBD
it/PRP
is/VBZ
underwriting/VBG
a/DT
$/$
50/CD
million/CD
loan/NN
for/IN
China/NNP
's/POS
biggest/JJS
trading/VBG
company/NN
,/,
China/NNP
Resources/NNPS
Holdings/NNP
Co./NNP
,/,
for/IN
general/JJ
corporate/JJ
purposes/NNS
./.
Of/IN
the/DT
total/NN
,/,
$/$
30/CD
million/CD
can/MD
be/VB
swapped/VBN
into/IN
marks/NNS
./.
Amid/IN
the/DT
international/JJ
outcry/NN
following/VBG
the/DT
shooting/NN
of/IN
students/NNS
and/CC
bystanders/NNS
in/IN
Beijing/NNP
on/IN
June/NNP
4/CD
,/,
foreign-bank/JJ
lending/NN
to/TO
China/NNP
came/VBD
to/TO
a/DT
halt/NN
./.
Bankers/NNPS
in/IN
Hong/NNP
Kong/NNP
said/VBD
this/DT
week/NN
's/POS
Citic/JJ
loan/NN
was/VBD
an/DT
important/JJ
sign/NN
that/IN
foreign/JJ
banks/NNS
are/VBP
interested/JJ
in/IN
resuming/VBG
regular/JJ
business/NN
with/IN
China/NNP
./.
``/``
It/PRP
's/VBZ
sort/NN
of/IN
a/DT
benchmark/NN
,/,
''/''
said/VBD
a/DT
U.S./NNP
banker/NN
who/WP
did/VBD
n't/RB
participate/VB
in/IN
the/DT
loan/NN
./.
Russell/NNP
L./NNP
Magarity/NNP
,/,
senior/JJ
managing/VBG
director/NN
of/IN
Chase/NNP
Manhattan/NNP
Asia/NNP
,/,
said/VBD
``/``
it/PRP
is/VBZ
time/NN
''/''
to/TO
start/VB
considering/VBG
loans/NNS
to/TO
China/NNP
again/RB
./.
Mr./NNP
Magarity/NNP
said/VBD
Chase/NNP
hopes/VBZ
to/TO
assemble/VB
an/DT
international/JJ
group/NN
of/IN
banks/NNS
in/IN
the/DT
lending/VBG
syndicate/NN
,/,
including/VBG
some/DT
of/IN
U.S./NNP
and/CC
Japanese/JJ
banks/NNS
with/IN
which/WDT
China/NNP
Resources/NNPS
has/VBZ
had/VBN
a/DT
strong/JJ
relationship/NN
in/IN
recent/JJ
years/NNS
./.
``/``
Right/RB
now/RB
we/PRP
think/VBP
we/PRP
can/MD
successfully/RB
syndicate/VB
this/DT
loan/NN
because/IN
of/IN
China/NNP
Resources/NNPS
'/POS
name/NN
,/,
''/''
he/PRP
said/VBD
./.
Indeed/RB
,/,
the/DT
reputations/NNS
of/IN
China/NNP
Resources/NNPS
and/CC
Citic/NNP
played/VBD
a/DT
significant/JJ
role/NN
in/IN
the/DT
decisions/NNS
./.
China/NNP
Resources/NNPS
and/CC
Citic/NNP
are/VBP
considered/VBN
exceptionally/RB
good/JJ
credit/NN
risks/NNS
,/,
bankers/NNS
said/VBD
./.
Other/JJ
loans/NNS
to/TO
China/NNP
will/MD
have/VB
to/TO
be/VB
considered/VBN
on/IN
a/DT
case-by-case/JJ
basis/NN
./.
Beyond/IN
the/DT
political/JJ
considerations/NNS
,/,
banks/NNS
are/VBP
concerned/VBN
about/IN
the/DT
state/NN
of/IN
China/NNP
's/POS
economy/NN
and/CC
about/IN
borrowers/NNS
'/POS
ability/NN
to/TO
make/VB
loan/NN
payments/NNS
./.
Now/RB
that/IN
the/DT
first/JJ
major/JJ
syndication/NN
of/IN
a/DT
Chinese/JJ
loan/NN
has/VBZ
proceeded/VBN
smoothly/RB
,/,
a/DT
Japanese/JJ
banker/NN
said/VBD
it/PRP
will/MD
be/VB
easier/JJR
for/IN
foreign/JJ
banks/NNS
to/TO
consider/VB
making/VBG
loans/NNS
to/TO
China/NNP
./.
Citic/NNP
,/,
which/WDT
acts/VBZ
as/IN
a/DT
sort/NN
of/IN
merchant/NN
bank/NN
for/IN
overseas/JJ
acquisitions/NNS
by/IN
China/NNP
,/,
is/VBZ
a/DT
relatively/RB
independent/JJ
company/NN
./.
Through/IN
Shortridge/NNP
,/,
it/PRP
is/VBZ
one/CD
of/IN
three/CD
partners/NNS
in/IN
Asia/NNP
Satellite/NNP
Telecommunications/NNP
Co./NNP
,/,
which/WDT
plans/VBZ
to/TO
launch/VB
a/DT
private/JJ
satellite/NN
on/IN
a/DT
Chinese/JJ
rocket/NN
next/JJ
year/NN
./.
The/DT
other/JJ
partners/NNS
are/VBP
Cable/NNP
&/CC
Wireless/NNP
PLC/NNP
of/IN
Britain/NNP
and/CC
Hutchison/NNP
Whampoa/NNP
Ltd./NNP
of/IN
Hong/NNP
Kong/NNP
./.
Citic/NNP
guaranteed/VBD
the/DT
loan/NN
./.
The/DT
loan/NN
was/VBD
syndicated/VBN
to/TO
a/DT
group/NN
of/IN
foreign/JJ
banks/NNS
from/IN
Europe/NNP
,/,
Hong/NNP
Kong/NNP
and/CC
Canada/NNP
,/,
foreign/JJ
bankers/NNS
said/VBD
;/:
they/PRP
did/VBD
n't/RB
identify/VB
the/DT
institutions/NNS
./.
BT/NNP
Asia/NNP
arranged/VBD
the/DT
syndication/NN
but/CC
did/VBD
n't/RB
underwrite/VB
the/DT
loan/NN
./.
A/DT
BT/NNP
Asia/NNP
official/NN
would/MD
n't/RB
disclose/VB
all/PDT
the/DT
terms/NNS
of/IN
the/DT
loan/NN
but/CC
said/VBD
it/PRP
was/VBD
linked/VBN
to/TO
a/DT
currency/NN
option/NN
that/WDT
allows/VBZ
banks/NNS
to/TO
receive/VB
repayment/NN
in/IN
yen/NN
instead/RB
of/IN
dollars/NNS
./.
The/DT
official/NN
said/VBD
Citic/NNP
will/MD
pay/VB
an/DT
interest/NN
rate/NN
that/WDT
will/MD
be/VB
about/IN
0.5/CD
percentage/NN
point/NN
higher/JJR
than/IN
the/DT
amount/NN
Citic/NNP
would/MD
have/VB
paid/VBN
for/IN
a/DT
similar/JJ
borrowing/NN
before/IN
June/NNP
4/CD
./.
He/PRP
said/VBD
it/PRP
was/VBD
difficult/JJ
to/TO
calculate/VB
the/DT
exact/JJ
interest/NN
rate/NN
because/IN
of/IN
the/DT
currency/NN
option/NN
./.
Bankers/NNS
said/VBD
they/PRP
believe/VBP
China/NNP
Resources/NNP
'/POS
loan/NN
costs/NNS
have/VBP
risen/VBN
by/IN
about/IN
the/DT
same/JJ
amount/NN
./.
Demand/NN
for/IN
products/NNS
in/IN
the/DT
current/JJ
quarter/NN
should/MD
weaken/VB
and/CC
inflation/NN
should/MD
n't/RB
put/VB
any/DT
upward/JJ
pressure/NN
on/IN
prices/NNS
,/,
say/VBP
U.S./NNP
plant/NN
managers/NNS
in/IN
a/DT
Dun/NNP
&/CC
Bradstreet/NNP
Corp./NNP
survey/NN
./.
Fewer/JJR
plant/NN
managers/NNS
expect/VBP
higher/JJR
new/JJ
orders/NNS
and/CC
output/NN
this/DT
quarter/NN
than/IN
in/IN
the/DT
year-earlier/JJ
period/NN
,/,
according/VBG
to/TO
the/DT
survey/NN
,/,
which/WDT
polls/VBZ
1,500/CD
managers/NNS
of/IN
manufacturing/VBG
facilities/NNS
on/IN
conditions/NNS
in/IN
their/PRP$
factories/NNS
and/CC
industries/NNS
./.
Plant/NN
managers/NNS
'/POS
optimism/NN
``/``
has/VBZ
moderated/VBN
,/,
which/WDT
is/VBZ
in/IN
line/NN
with/IN
current/JJ
economic/JJ
data/NNS
that/WDT
indicate/VBP
slow/JJ
but/CC
continuing/VBG
economic/JJ
growth/NN
,/,
''/''
said/VBD
Joseph/NNP
W./NNP
Duncan/NNP
,/,
corporate/JJ
economist/NN
and/CC
chief/NN
statistician/NN
for/IN
Dun/NNP
&/CC
Bradstreet/NNP
,/,
a/DT
financial-data/JJ
company/NN
./.
The/DT
managers/NNS
expect/VBP
materials/NNS
costs/NNS
to/TO
drop/VB
in/IN
the/DT
quarter/NN
,/,
leading/VBG
fewer/JJR
to/TO
forecast/VB
higher/JJR
selling/VBG
prices/NNS
,/,
Mr./NNP
Duncan/NNP
said/VBD
./.
Dun/NNP
&/CC
Bradstreet/NNP
calculates/VBZ
several/JJ
optimism/NN
indexes/NNS
,/,
subtracting/VBG
the/DT
percentage/NN
of/IN
managers/NNS
expecting/VBG
a/DT
decline/NN
from/IN
the/DT
percentage/NN
expecting/VBG
growth/NN
./.
For/IN
overall/JJ
demand/NN
,/,
the/DT
fourth-quarter/NN
index/NN
fell/VBD
to/TO
28/CD
from/IN
31/CD
last/JJ
quarter/NN
and/CC
32/CD
in/IN
the/DT
1988/CD
fourth/JJ
period/NN
./.
For/IN
output/NN
,/,
the/DT
index/NN
was/VBD
29/CD
,/,
the/DT
same/JJ
as/IN
last/JJ
quarter/NN
,/,
but/CC
a/DT
three-point/JJ
drop/NN
from/IN
a/DT
year/NN
ago/IN
./.
For/IN
new/JJ
orders/NNS
,/,
the/DT
figure/NN
again/RB
was/VBD
flat/JJ
with/IN
the/DT
third/JJ
quarter/NN
at/IN
29/CD
./.
The/DT
latest/JJS
figure/NN
also/RB
is/VBZ
down/IN
a/DT
point/NN
from/IN
the/DT
year/NN
earlier/RBR
./.
The/DT
U.S./NNP
dollar/NN
strengthened/VBD
during/IN
the/DT
summer/NN
and/CC
may/MD
have/VB
damped/VBN
the/DT
managers/NNS
'/POS
hopes/NNS
for/IN
higher/JJR
demand/NN
from/IN
overseas/NN
./.
Recent/JJ
``/``
declines/NNS
in/IN
the/DT
dollar/NN
should/MD
bolster/VB
manufacturers/NNS
'/POS
selling/VBG
opportunities/NNS
abroad/RB
,/,
''/''
Mr./NNP
Duncan/NNP
said/VBD
./.
For/IN
the/DT
next/JJ
12/CD
months/NNS
,/,
each/DT
of/IN
the/DT
indexes/NNS
for/IN
overall/JJ
demand/NN
,/,
production/NN
and/CC
new/JJ
orders/NNS
fell/VBD
one/CD
point/NN
from/IN
last/JJ
quarter/NN
,/,
to/TO
57/CD
,/,
57/CD
and/CC
59/CD
,/,
respectively/RB
./.
The/DT
year-earlier/JJ
figures/NNS
were/VBD
60/CD
,/,
60/CD
and/CC
61/CD
./.
Dun/NNP
&/CC
Bradstreet/NNP
's/POS
data/NNS
measuring/VBG
fourth-quarter/NN
costs/NNS
of/IN
making/VBG
a/DT
single/JJ
unit/NN
of/IN
a/DT
product/NN
indicated/VBD
that/IN
``/``
manufacturers/NNS
foresee/VBP
weaker/JJR
prices/NNS
''/''
for/IN
materials/NNS
``/``
while/IN
wage/NN
pressures/NNS
,/,
though/IN
still/RB
present/RB
,/,
are/VBP
not/RB
expected/VBN
to/TO
escalate/VB
,/,
''/''
Mr./NNP
Duncan/NNP
said/VBD
./.
Bad/JJ
real/JJ
estate/NN
loans/NNS
continued/VBD
to/TO
gnaw/VB
at/IN
third-quarter/NN
profits/NNS
of/IN
Southwestern/JJ
banks/NNS
,/,
with/IN
the/DT
notable/JJ
exception/NN
of/IN
institutions/NNS
that/WDT
cleansed/VBD
their/PRP$
books/NNS
with/IN
federal/JJ
bailouts/NNS
./.
``/``
You/PRP
've/VBP
got/VBN
a/DT
two-tiered/JJ
market/NN
,/,
''/''
said/VBD
Frank/NNP
W./NNP
Anderson/NNP
,/,
an/DT
analyst/NN
with/IN
Stephens/NNP
Inc./NNP
,/,
Little/NNP
Rock/NNP
,/,
Ark/NNP
./.
On/IN
top/NN
,/,
he/PRP
said/VBD
,/,
are/VBP
such/JJ
dynamos/NNS
as/IN
NCNB/NNP
Corp./NNP
and/CC
First/NNP
City/NNP
Bancorp/NNP
of/IN
Texas/NNP
,/,
which/WDT
acquired/VBD
big/JJ
,/,
ailing/VBG
Texas/NNP
banks/NNS
in/IN
government-assisted/JJ
transactions/NNS
that/WDT
allowed/VBD
them/PRP
to/TO
slough/VB
off/IN
bad/JJ
loans/NNS
./.
They/PRP
are/VBP
expected/VBN
to/TO
ring/VB
up/IN
big/JJ
profits/NNS
for/IN
the/DT
third/JJ
quarter/NN
,/,
Mr./NNP
Anderson/NNP
said/VBD
./.
As/IN
for/IN
the/DT
rest/NN
,/,
warns/VBZ
James/NNP
McDermott/NNP
,/,
an/DT
analyst/NN
with/IN
Keefe/NNP
Bruyette/NNP
&/CC
Woods/NNP
,/,
New/NNP
York/NNP
,/,
``/``
asset/NN
quality/NN
concerns/NNS
are/VBP
going/VBG
to/TO
dominate/VB
third-quarter/NN
reports/NNS
./.
''/''
For/IN
example/NN
,/,
Cullen\/Frost/NNP
Bankers/NNPS
Inc./NNP
,/,
San/NNP
Antonio/NNP
,/,
Texas/NNP
,/,
is/VBZ
expecting/VBG
``/``
an/DT
uptick/NN
in/IN
{/(
non-performing/JJ
loans/NNS
real/JJ
estate/NN
''/''
in/IN
the/DT
third/JJ
quarter/NN
,/,
said/VBD
Thomas/NNP
Frost/NNP
,/,
chairman/NN
and/CC
chief/NN
executive/NN
./.
As/IN
the/DT
only/JJ
major/JJ
bank/NN
holding/VBG
company/NN
in/IN
Texas/NNP
to/TO
survive/VB
without/IN
a/DT
bailout/NN
or/CC
merger/NN
,/,
Cullen\/Frost/NNP
managed/VBD
only/RB
``/``
very/RB
modest/JJ
''/''
earnings/NNS
in/IN
the/DT
period/NN
,/,
he/PRP
said/VBD
./.
``/``
If/IN
the/DT
government/NN
handed/VBD
me/PRP
a/DT
big/JJ
bucket/NN
of/IN
money/NN
I/PRP
'd/MD
look/VB
good/JJ
,/,
too/RB
,/,
''/''
Mr./NNP
Frost/NNP
added/VBD
./.
NCNB/NNP
Corp./NNP
's/POS
Texas/NNP
operation/NN
,/,
on/IN
the/DT
other/JJ
hand/NN
,/,
is/VBZ
expected/VBN
to/TO
report/VB
an/DT
operating/VBG
profit/NN
``/``
in/IN
line/NN
with/IN
{/(
or/CC
}/)
perhaps/RB
a/DT
bit/NN
better/RB
''/''
than/IN
its/PRP$
results/NNS
in/IN
the/DT
first/JJ
two/CD
quarters/NNS
,/,
Timothy/NNP
Hartman/NNP
,/,
vice/NN
chairman/NN
of/IN
the/DT
Texas/NNP
unit/NN
,/,
said/VBD
./.
The/DT
Texas/NNP
unit/NN
had/VBD
an/DT
operating/VBG
profit/NN
of/IN
$/$
58.7/CD
million/CD
in/IN
the/DT
first/JJ
quarter/NN
and/CC
$/$
55.7/CD
million/CD
in/IN
the/DT
second/JJ
quarter/NN
./.
NCNB/NNP
,/,
based/VBN
in/IN
Charlotte/NNP
,/,
N.C./NNP
,/,
bought/VBD
the/DT
banking/NN
assets/NNS
of/IN
failed/VBN
First/NNP
Republic/NNP
Bank/NNP
Corp./NNP
of/IN
Dallas/NNP
last/JJ
year/NN
in/IN
a/DT
transaction/NN
expected/VBN
to/TO
cost/VB
the/DT
Federal/NNP
Deposit/NNP
Insurance/NNP
Corp./NNP
about/IN
$/$
3/CD
billion/CD
./.
Republic/NNP
is/VBZ
n't/RB
related/VBN
to/TO
First/NNP
Republic/NNP
Bancorp/NNP
of/IN
San/NNP
Francisco/NNP
./.
Robert/NNP
Rieke/NNP
,/,
an/DT
analyst/NN
with/IN
Raucher/NNP
Pierce/NNP
Refsnes/NNP
Inc./NNP
,/,
Dallas/NNP
,/,
estimates/VBZ
Houston-based/JJ
First/NNP
City/NNP
's/POS
third-quarter/NN
net/NN
was/VBD
higher/JJR
than/IN
second/JJ
quarter/NN
earnings/NNS
of/IN
$/$
28.1/CD
million/CD
./.
However/RB
,/,
he/PRP
estimated/VBD
that/IN
per-share/JJ
earnings/NNS
stayed/VBD
``/``
relatively/RB
flat/JJ
''/''
at/IN
about/IN
the/DT
second/JJ
quarter/NN
's/VBZ
$/$
1.19/CD
a/DT
share/NN
because/IN
the/DT
total/JJ
number/NN
of/IN
shares/NNS
outstanding/JJ
increased/VBD
./.
First/NNP
City/NNP
was/VBD
recapitalized/VBN
last/JJ
year/NN
by/IN
a/DT
group/NN
led/VBN
by/IN
Chicago/NNP
banker/NN
A./NNP
Robert/NNP
Abboud/NNP
./.
The/DT
FDIC/NNP
contributed/VBD
nearly/RB
$/$
1/CD
billion/CD
to/TO
the/DT
new/JJ
organization/NN
./.
More/RBR
recent/JJ
Texas/NNP
bailouts/NNS
wo/MD
n't/RB
have/VB
much/JJ
impact/NN
on/IN
the/DT
third/JJ
quarter/NN
results/NNS
of/IN
the/DT
new/JJ
parent/NN
companies/NNS
,/,
analysts/NNS
said/VBD
./.
These/DT
include/VBP
the/DT
sale/NN
of/IN
MCorp/NNP
's/POS
failed/VBN
banks/NNS
to/TO
Banc/NNP
One/CD
Corp./NNP
,/,
Columbus/NNP
,/,
Ohio/NNP
;/:
the/DT
sale/NN
of/IN
National/NNP
Bancshares/NNP
Corp./NNP
of/IN
Texas/NNP
to/TO
Equimark/NNP
Corp./NNP
of/IN
Pittsburgh/NNP
;/:
and/CC
the/DT
sale/NN
of/IN
Texas/NNP
American/NNP
Bancshares/NNPS
Inc./NNP
's/POS
banking/NN
assets/NNS
to/TO
Deposit/NNP
Guaranty/NNP
Bank/NNP
of/IN
Dallas/NNP
./.
The/DT
transactions/NNS
have/VBP
n't/RB
yet/RB
been/VBN
completed/VBN
and/CC
the/DT
Texas/NNP
units/NNS
are/VBP
still/RB
unprofitable/JJ
./.
Said/VBD
Ronald/NNP
Steinhart/NNP
,/,
chairman/NN
of/IN
Deposit/NNP
Guaranty/NNP
:/:
``/``
You/PRP
wo/MD
n't/RB
see/VB
the/DT
newly/RB
cleansed/VBN
bank/NN
in/IN
operation/NN
until/IN
approximately/RB
Dec./NNP
1/CD
./.
''/''
Outside/IN
Texas/NNP
,/,
the/DT
biggest/JJS
real/JJ
estate/NN
nightmare/NN
for/IN
banks/NNS
in/IN
the/DT
region/NN
is/VBZ
probably/RB
Arizona/NNP
./.
``/``
Arizona/NNP
is/VBZ
going/VBG
to/TO
be/VB
a/DT
mess/NN
,/,
''/''
said/VBD
Keefe/NNP
Bruyette/NNP
's/POS
Mr./NNP
McDermott/NNP
./.
Several/JJ
banks/NNS
with/IN
operations/NNS
in/IN
Arizona/NNP
,/,
including/VBG
First/NNP
Interstate/NNP
Bancorp./NNP
and/CC
Security/NNP
Pacific/NNP
Corp./NNP
,/,
both/DT
of/IN
Los/NNP
Angeles/NNP
,/,
have/VBP
already/RB
indicated/VBN
they/PRP
see/VBP
asset-quality/JJ
problems/NNS
./.
Chase/NNP
Manhattan/NNP
Corp./NNP
,/,
New/NNP
York/NNP
,/,
last/JJ
month/NN
took/VBD
a/DT
$/$
126/CD
million/CD
charge/NN
against/IN
earnings/NNS
related/VBN
to/TO
real/JJ
estate/NN
loans/NNS
at/IN
Chase/NNP
Bank/NNP
of/IN
Arizona/NNP
./.
Several/JJ
credit/NN
rating/NN
agencies/NNS
recently/RB
downgraded/VBD
the/DT
senior/JJ
debt/NN
of/IN
Valley/NNP
National/NNP
Corp./NNP
,/,
warning/VBG
that/IN
the/DT
Phoenix-based/JJ
bank/NN
holding/VBG
company/NN
is/VBZ
vulnerable/JJ
to/TO
the/DT
deteriorating/VBG
real/JJ
estate/NN
market/NN
./.
``/``
Despite/IN
the/DT
special/JJ
addition/NN
to/TO
reserves/NNS
in/IN
the/DT
second/JJ
quarter/NN
,/,
Valley/NNP
remains/VBZ
poorly/RB
reserved/VBN
against/IN
its/PRP$
real/JJ
estate/NN
exposure/NN
,/,
''/''
Moody/NNP
's/POS
Investors/NNPS
Service/NNP
Inc./NNP
said/VBD
in/IN
July/NNP
./.
One/CD
of/IN
the/DT
few/JJ
bright/JJ
spots/NNS
in/IN
the/DT
region/NN
is/VBZ
Colorado/NNP
,/,
where/WRB
a/DT
mild/JJ
economic/JJ
recovery/NN
has/VBZ
helped/VBN
several/JJ
banks/NNS
staunch/VB
the/DT
flow/NN
of/IN
red/JJ
ink/NN
./.
For/IN
instance/NN
,/,
United/NNP
Banks/NNPS
of/IN
Colorado/NNP
Inc./NNP
,/,
the/DT
state/NN
's/POS
largest/JJS
multibank/NN
holding/VBG
company/NN
,/,
resumed/VBD
a/DT
cash/NN
dividend/NN
earlier/RBR
this/DT
year/NN
after/IN
recording/VBG
eight/CD
straight/JJ
quarters/NNS
of/IN
profitability/NN
./.
More/RBR
good/JJ
news/NN
comes/VBZ
from/IN
New/NNP
Mexico/NNP
,/,
where/WRB
banks/NNS
did/VBD
n't/RB
have/VB
as/RB
much/JJ
opportunity/NN
to/TO
get/VB
into/IN
difficulty/NN
in/IN
the/DT
first/JJ
place/NN
./.
``/``
The/DT
state/NN
never/RB
grew/VBD
fast/RB
enough/RB
to/TO
get/VB
banking/NN
organizations/NNS
in/IN
real/JJ
trouble/NN
and/CC
the/DT
banking/NN
organizations/NNS
were/VBD
never/RB
big/JJ
enough/RB
to/TO
lend/VB
into/IN
trouble/NN
,/,
''/''
said/VBD
Mr./NNP
Rieke/NNP
of/IN
Raucher/NNP
Pierce/NNP
Refsnes/NNP
./.
We/PRP
do/VBP
n't/RB
know/VB
who/WP
is/VBZ
winning/VBG
the/DT
drug/NN
war/NN
in/IN
Latin/NNP
America/NNP
,/,
but/CC
we/PRP
know/VBP
who/WP
's/VBZ
losing/VBG
it/PRP
--/:
the/DT
press/NN
./.
Over/IN
the/DT
past/JJ
six/CD
months/NNS
,/,
six/CD
journalists/NNS
have/VBP
been/VBN
killed/VBN
and/CC
10/CD
kidnapped/VBN
by/IN
drug/NN
traffickers/NNS
or/CC
leftist/JJ
guerrillas/NNS
--/:
who/WP
often/RB
are/VBP
one/CD
and/CC
the/DT
same/JJ
--/:
in/IN
Colombia/NNP
./.
Over/IN
the/DT
past/JJ
12/CD
years/NNS
,/,
at/IN
least/JJS
40/CD
journalists/NNS
have/VBP
died/VBN
there/RB
./.
The/DT
attacks/NNS
have/VBP
intensified/VBN
since/IN
the/DT
Colombian/JJ
government/NN
began/VBD
cracking/VBG
down/IN
on/IN
the/DT
traffickers/NNS
in/IN
August/NNP
,/,
trying/VBG
to/TO
prevent/VB
their/PRP$
takeover/NN
of/IN
the/DT
country/NN
./.
The/DT
slaughter/NN
in/IN
Colombia/NNP
was/VBD
very/RB
much/RB
on/IN
the/DT
minds/NNS
of/IN
450/CD
editors/NNS
and/CC
publishers/NNS
from/IN
Latin/NNP
America/NNP
,/,
the/DT
United/NNP
States/NNPS
,/,
the/DT
Caribbean/NNP
and/CC
Canada/NNP
attending/VBG
the/DT
45th/JJ
general/JJ
assembly/NN
of/IN
the/DT
Inter-American/NNP
Press/NNP
Association/NNP
in/IN
Monterrey/NNP
,/,
Mexico/NNP
,/,
this/DT
week/NN
./.
On/IN
Tuesday/NNP
the/DT
conference/NN
got/VBD
word/NN
of/IN
another/DT
atrocity/NN
,/,
the/DT
assassination/NN
in/IN
Medellin/NNP
of/IN
two/CD
employees/NNS
of/IN
El/NNP
Espectador/NNP
,/,
Colombia/NNP
's/POS
second-largest/JJ
newspaper/NN
./.
The/DT
paper/NN
's/POS
local/JJ
administrator/NN
,/,
Maria/NNP
Luz/NNP
Lopez/NNP
,/,
was/VBD
shot/VBN
dead/JJ
,/,
and/CC
her/PRP$
mother/NN
wounded/VBN
,/,
while/IN
her/PRP$
car/NN
was/VBD
stopped/VBN
for/IN
a/DT
red/JJ
light/NN
./.
An/DT
hour/NN
later/RB
,/,
the/DT
paper/NN
's/POS
circulation/NN
manager/NN
,/,
Miguel/NNP
Soler/NNP
,/,
was/VBD
shot/VBN
and/CC
killed/VBN
near/IN
his/PRP$
home/NN
./.
The/DT
drug/NN
lords/NNS
who/WP
claimed/VBD
responsibility/NN
said/VBD
they/PRP
would/MD
blow/VB
up/IN
the/DT
Bogota/NNP
newspaper/NN
's/POS
offices/NNS
if/IN
it/PRP
continued/VBD
to/TO
distribute/VB
in/IN
Medellin/NNP
./.
They/PRP
bombed/VBD
the/DT
Bogota/NNP
offices/NNS
last/JJ
month/NN
,/,
destroying/VBG
its/PRP$
computer/NN
and/CC
causing/VBG
$/$
2.5/CD
million/CD
in/IN
damage/NN
./.
El/NNP
Espectador/NNP
has/VBZ
been/VBN
a/DT
special/JJ
target/NN
because/IN
of/IN
the/DT
extraordinary/JJ
courage/NN
of/IN
its/PRP$
publisher/NN
and/CC
his/PRP$
staff/NN
./.
At/IN
Monterrey/NNP
,/,
publisher/NN
Luis/NNP
Gabriel/NNP
Cano/NNP
,/,
although/IN
shaken/VBN
by/IN
the/DT
murders/NNS
,/,
issued/VBD
a/DT
statement/NN
saying/VBG
:/:
``/``
We/PRP
will/MD
not/RB
cease/VB
our/PRP$
fight/NN
against/IN
drug/NN
trafficking/NN
./.
They/PRP
want/VBP
to/TO
terrify/VB
the/DT
press/NN
and/CC
in/IN
particular/JJ
El/NNP
Espectador/NNP
because/IN
it/PRP
has/VBZ
always/RB
been/VBN
a/DT
torchbearer/NN
in/IN
this/DT
war/NN
./.
''/''
This/DT
comes/VBZ
from/IN
a/DT
man/NN
whose/WP$
brother/NN
,/,
Guillermo/NNP
,/,
was/VBD
murdered/VBN
in/IN
1986/CD
./.
The/DT
publishers/NNS
in/IN
Monterrey/NNP
command/VBP
no/DT
battalions/NNS
,/,
but/CC
they/PRP
agreed/VBD
to/TO
express/VB
their/PRP$
outrage/NN
with/IN
editorials/NNS
in/IN
today/NN
's/POS
editions/NNS
./.
Many/JJ
will/MD
use/VB
a/DT
common/JJ
editorial/NN
./.
A/DT
final/JJ
statement/NN
yesterday/NN
said/VBD
:/:
``/``
While/IN
some/DT
advances/NNS
are/VBP
being/VBG
made/VBN
in/IN
nations/NNS
throughout/IN
the/DT
hemisphere/NN
,/,
the/DT
state/NN
of/IN
press/NN
freedom/NN
in/IN
the/DT
Americas/NNPS
still/RB
must/MD
be/VB
regarded/VBN
as/RB
grim/JJ
as/IN
long/RB
as/IN
journalists/NNS
and/CC
their/PRP$
families/NNS
are/VBP
subject/JJ
to/TO
the/DT
crudest/JJS
form/NN
of/IN
censorship/NN
:/:
death/NN
by/IN
assassination/NN
./.
''/''
The/DT
report/NN
charged/VBD
that/IN
Panama/NNP
's/POS
Manuel/NNP
Noriega/NNP
is/VBZ
not/RB
only/RB
in/IN
league/NN
with/IN
the/DT
drug/NN
traffickers/NNS
but/CC
also/RB
is/VBZ
bullying/VBG
the/DT
press/NN
as/RB
never/RB
before/IN
./.
``/``
Noriega/NNP
has/VBZ
closed/VBN
every/DT
independent/JJ
newspaper/NN
,/,
radio/NN
and/CC
television/NN
station/NN
and/CC
arrested/VBN
,/,
tortured/VBN
or/CC
forced/VBN
into/IN
exile/NN
a/DT
long/JJ
list/NN
of/IN
reporters/NNS
,/,
''/''
the/DT
statement/NN
declared/VBD
./.
It/PRP
added/VBD
:/:
``/``
In/IN
Cuba/NNP
,/,
public/JJ
enemy/NN
No./NN
1/CD
of/IN
press/NN
freedoms/NNS
in/IN
the/DT
hemisphere/NN
,/,
repression/NN
of/IN
journalists/NNS
both/DT
Cuban/NNP
and/CC
foreign/JJ
is/VBZ
worse/JJR
than/IN
ever/RB
./.
''/''
And/CC
in/IN
Nicaragua/NNP
,/,
promises/NNS
of/IN
press/NN
freedom/NN
by/IN
the/DT
Sandinistas/NNPS
``/``
have/VBP
not/RB
materialized/VBN
./.
''/''
As/IN
it/PRP
happens/VBZ
,/,
the/DT
four/CD
countries/NNS
cited/VBN
,/,
Colombia/NNP
,/,
Cuba/NNP
,/,
Panama/NNP
and/CC
Nicaragua/NNP
,/,
are/VBP
not/RB
only/RB
where/WRB
the/DT
press/NN
is/VBZ
under/IN
greatest/JJS
attack/NN
but/CC
also/RB
are/VBP
linked/VBN
by/IN
the/DT
drug/NN
trade/NN
and/CC
left-wing/JJ
politics/NNS
./.
Noriega/NNP
is/VBZ
close/JJ
to/TO
Castro/NNP
and/CC
may/MD
once/RB
have/VB
been/VBN
his/PRP$
agent/NN
./.
Sandinistas/NNP
Thomas/NNP
Borge/NNP
and/CC
the/DT
Ortega/NNP
brothers/NNS
are/VBP
Castro/NNP
proteges/NNS
;/:
he/PRP
backed/VBD
their/PRP$
takeover/NN
of/IN
Nicaragua/NNP
./.
In/IN
Colombia/NNP
,/,
the/DT
drug-financed/JJ
guerrillas/NNS
trying/VBG
to/TO
seize/VB
the/DT
country/NN
and/CC
destroy/VB
democracy/NN
include/VBP
M-19/NN
,/,
which/WDT
Castro/NNP
has/VBZ
clearly/RB
backed/VBN
./.
Robert/NNP
Merkel/NNP
,/,
a/DT
former/JJ
U.S./NNP
attorney/NN
handling/VBG
drug/NN
indictments/NNS
in/IN
Florida/NNP
,/,
does/VBZ
n't/RB
think/VB
for/IN
a/DT
minute/NN
that/DT
Castro/NNP
's/POS
much/RB
publicized/VBN
trials/NNS
of/IN
high/JJ
officials/NNS
engaged/VBN
in/IN
the/DT
drug/NN
trade/NN
mean/VBP
he/PRP
has/VBZ
broken/VBN
off/IN
with/IN
the/DT
Medellin/NNP
drug/NN
cartel/NN
./.
``/``
If/IN
the/DT
cartel/NN
succeeds/VBZ
in/IN
blackmailing/VBG
the/DT
Colombian/JJ
authorities/NNS
into/IN
negotiations/NNS
,/,
the/DT
cartel/NN
will/MD
be/VB
in/IN
control/NN
and/CC
Fidel/NNP
can/MD
exploit/VB
his/PRP$
past/JJ
relationships/NNS
with/IN
them/PRP
,/,
''/''
he/PRP
told/VBD
the/DT
Journal/NNP
's/POS
David/NNP
Asman/NNP
recently/RB
./.
The/DT
struggle/NN
against/IN
the/DT
drug/NN
lords/NNS
in/IN
Colombia/NNP
will/MD
be/VB
a/DT
near/JJ
thing/NN
./.
This/DT
week/NN
,/,
the/DT
government/NN
arrested/VBD
Jose/NNP
Abello/NNP
Silva/NNP
,/,
said/VBN
to/TO
be/VB
the/DT
fourth-ranking/JJ
cartel/NN
leader/NN
./.
He/PRP
will/MD
probably/RB
be/VB
extradited/VBN
to/TO
the/DT
U.S./NNP
for/IN
trial/NN
under/IN
an/DT
extradition/NN
treaty/NN
President/NNP
Virgilia/NNP
Barco/NNP
has/VBZ
revived/VBN
./.
Later/RB
,/,
another/DT
high-ranking/JJ
trafficker/NN
,/,
Leonidas/NNP
Vargas/NNP
,/,
was/VBD
arrested/VBN
and/CC
1,000/CD
pounds/NNS
of/IN
dynamite/NN
seized/VBN
./.
Mr./NNP
Barco/NNP
has/VBZ
refused/VBN
U.S./NNP
troops/NNS
or/CC
advisers/NNS
but/CC
has/VBZ
accepted/VBN
U.S./NNP
military/JJ
aid/NN
./.
President/NNP
Bush/NNP
has/VBZ
agreed/VBN
to/TO
meet/VB
within/IN
90/CD
days/NNS
with/IN
Mr./NNP
Barco/NNP
,/,
President/NNP
Alan/NNP
Garcia/NNP
of/IN
Peru/NNP
and/CC
President/NNP
Jaime/NNP
Paz/NNP
Zamora/NNP
of/IN
Bolivia/NNP
to/TO
discuss/VB
the/DT
drug/NN
problem/NN
./.
It/PRP
might/MD
not/RB
be/VB
a/DT
bad/JJ
idea/NN
to/TO
do/VB
that/DT
sooner/RBR
,/,
rather/RB
than/IN
later/RB
./.
After/IN
the/DT
Panama/NNP
fiasco/NN
,/,
they/PRP
will/MD
need/VB
some/DT
reassurance/NN
./.
Certainly/RB
,/,
the/DT
Colombian/JJ
press/NN
is/VBZ
much/JJ
in/IN
need/NN
of/IN
that/DT
./.
GREAT/NNP
AMERICAN/NNP
COMMUNICATIONS/NNPS
Co./NNP
,/,
Cincinnati/NNP
,/,
said/VBD
it/PRP
exchanged/VBD
about/IN
$/$
50/CD
million/CD
in/IN
debentures/NNS
and/CC
notes/NNS
for/IN
3.65/CD
million/CD
of/IN
its/PRP$
common/JJ
shares/NNS
at/IN
$/$
12/CD
a/DT
share/NN
./.
As/IN
a/DT
result/NN
of/IN
the/DT
transaction/NN
,/,
American/NNP
Financial/NNP
Corp./NNP
's/POS
common/JJ
holdings/NNS
in/IN
Great/NNP
American/NNP
declined/VBD
to/TO
64/CD
%/NN
from/IN
71/CD
%/NN
./.
The/DT
broadcasting/NN
concern/NN
said/VBD
the/DT
debt/NN
retired/VBD
consisted/VBN
of/IN
$/$
35/CD
million/CD
of/IN
14/CD
3\/8/CD
%/NN
senior/JJ
subordinated/VBN
debentures/NNS
,/,
$/$
14.2/CD
million/CD
of/IN
13/CD
1\/4/CD
%/NN
senior/JJ
notes/NNS
and/CC
$/$
200,000/CD
of/IN
14/CD
1\/8/CD
%/NN
senior/JJ
notes/NNS
of/IN
a/DT
subsidiary/NN
./.
American/NNP
Financial/NNP
is/VBZ
a/DT
financial/JJ
holding/NN
company/NN
./.
Robert/NNP
L./NNP
Corcoran/NNP
Jr./NNP
,/,
45/CD
years/NNS
old/JJ
,/,
was/VBD
named/VBN
managing/VBG
director/NN
and/CC
regional/JJ
manager/NN
of/IN
Japan/NNP
and/CC
Asia/NNP
at/IN
this/DT
firm/NN
's/POS
Chemical/NNP
Bank/NNP
unit/NN
./.
The/DT
post/NN
was/VBD
occupied/VBN
on/IN
an/DT
interim/JJ
basis/NN
by/IN
Marc/NNP
Morrison/NNP
,/,
a/DT
managing/VBG
director/NN
in/IN
the/DT
international-money-markets/NN
and/CC
government-securities/NNS
department/NN
in/IN
Tokyo/NNP
./.
Mr./NNP
Corcoran/NNP
most/RBS
recently/RB
was/VBD
head/NN
of/IN
administration/NN
and/CC
portfolio/NN
management/NN
at/IN
the/DT
Chemical/NNP
Realty/NNP
Group/NNP
division/NN
of/IN
Chemical/NNP
Bank/NNP
./.
Matra/NNP
Communications/NNPS
S.A./NNP
,/,
a/DT
unit/NN
of/IN
France/NNP
's/POS
defense/NN
and/CC
electronics/NNS
group/NN
,/,
Matra/NNP
S.A./NNP
,/,
said/VBD
it/PRP
expects/VBZ
strong/JJ
profit/NN
growth/NN
in/IN
both/DT
1989/CD
and/CC
1990/CD
./.
The/DT
company/NN
,/,
which/WDT
is/VBZ
preparing/VBG
to/TO
sell/VB
10/CD
%/NN
of/IN
its/PRP$
shares/NNS
on/IN
the/DT
French/NNP
stock/NN
market/NN
,/,
said/VBD
profit/NN
could/MD
reach/VB
between/IN
100/CD
million/CD
francs/NNS
$/$
15.4/CD
million/CD
110/CD
million/CD
francs/NNS
this/DT
year/NN
,/,
representing/VBG
increases/NNS
of/IN
between/IN
30/CD
%/NN
and/CC
44/CD
%/NN
from/IN
the/DT
1988/CD
level/NN
of/IN
76.5/CD
million/CD
francs/NNS
./.
For/IN
1990/CD
,/,
profit/NN
growth/NN
could/MD
slow/VB
to/TO
between/IN
18/CD
%/NN
and/CC
20/CD
%/NN
,/,
reaching/VBG
between/IN
120/CD
million/CD
and/CC
130/CD
million/CD
francs/NNS
,/,
the/DT
company/NN
said/VBD
./.
The/DT
company/NN
plans/VBZ
to/TO
raise/VB
1.5/CD
billion/CD
francs/NNS
with/IN
its/PRP$
share/NN
offer/NN
,/,
involving/VBG
the/DT
sale/NN
of/IN
one/CD
million/CD
shares/NNS
./.
Between/IN
1/CD
%/NN
and/CC
2/CD
%/NN
of/IN
the/DT
offering/NN
has/VBZ
been/VBN
set/VBN
aside/RB
for/IN
the/DT
company/NN
's/POS
employees/NNS
./.
The/DT
offering/NN
will/MD
begin/VB
Oct./NNP
24./CD
en/FW
Walker/NNP
Telecommunications/NNPS
Corp./NNP
said/VBD
it/PRP
plans/VBZ
to/TO
repurchase/VB
as/RB
many/JJ
as/IN
one/CD
million/CD
shares/NNS
from/IN
time/NN
to/TO
time/NN
,/,
depending/VBG
on/IN
the/DT
state/NN
of/IN
the/DT
market/NN
./.
The/DT
supplier/NN
of/IN
electronic/JJ
key/JJ
telephone/NN
systems/NNS
has/VBZ
5.1/CD
million/CD
shares/NNS
outstanding/JJ
and/CC
will/MD
purchase/VB
the/DT
shares/NNS
in/IN
the/DT
market/NN
,/,
and/CC
or/CC
in/IN
privately/RB
negotiated/VBN
transactions/NNS
./.
In/IN
national/JJ
over-the-counter/JJ
trading/NN
,/,
Walker/NNP
shares/NNS
closed/VBD
yesterday/NN
at/IN
90.625/CD
cents/NNS
,/,
up/IN
21.875/CD
cents/NNS
./.
Du/NNP
Pont/NNP
Co./NNP
said/VBD
its/PRP$
Du/NNP
Pont/NNP
do/VB
Brasil/JJ
subsidiary/NN
will/MD
invest/VB
about/IN
$/$
19/CD
million/CD
to/TO
build/VB
a/DT
multimillion-pound-per-year/JJ
fluoropolymers/NNS
plant/NN
and/CC
technical/JJ
center/NN
in/IN
Sao/NNP
Paulo/NNP
,/,
Brazil/NNP
./.
The/DT
plant/NN
,/,
scheduled/VBN
to/TO
operate/VB
in/IN
early/RB
1992/CD
,/,
is/VBZ
part/NN
of/IN
Du/NNP
Pont/NNP
's/POS
plan/NN
to/TO
increase/VB
world-wide/JJ
fluoropolymer/NN
capacity/NN
40/CD
%/NN
by/IN
1992/CD
./.
Du/NNP
Pont/NNP
markets/VBZ
fluoropolymers/NNS
under/IN
the/DT
trademark/NN
Teflon/NNP
./.
Initial/JJ
claims/NNS
for/IN
regular/JJ
state/NN
unemployment/NN
benefits/NNS
rose/VBD
to/TO
a/DT
seasonally/RB
adjusted/VBN
333,000/CD
during/IN
the/DT
week/NN
ended/VBD
Sept./NNP
30/CD
from/IN
328,000/CD
the/DT
previous/JJ
week/NN
,/,
the/DT
Labor/NNP
Department/NNP
said/VBD
./.
The/DT
number/NN
of/IN
people/NNS
receiving/VBG
regular/JJ
state/NN
benefits/NNS
in/IN
the/DT
week/NN
ended/VBD
Sept./NNP
23/CD
increased/VBD
to/TO
a/DT
seasonally/RB
adjusted/VBN
2,204,000/CD
,/,
or/CC
2.2/CD
%/NN
of/IN
those/DT
covered/VBN
by/IN
unemployment/NN
insurance/NN
,/,
from/IN
2,156,000/CD
the/DT
previous/JJ
week/NN
,/,
when/WRB
the/DT
insured/VBN
unemployment/NN
rate/NN
was/VBD
2.1/CD
%/NN
./.
Counting/VBG
all/DT
state/NN
and/CC
federal/JJ
benefit/NN
programs/NNS
,/,
the/DT
number/NN
of/IN
people/NNS
receiving/VBG
unemployment/NN
benefits/NNS
in/IN
the/DT
week/NN
ended/VBD
Sept./NNP
23/CD
fell/VBD
to/TO
1,837,800/CD
from/IN
1,839,600/CD
a/DT
week/NN
earlier/RBR
./.
These/DT
figures/NNS
are/VBP
n't/RB
seasonally/RB
adjusted/VBN
./.
Part/NN
of/IN
a/DT
Series/NN
Marlene/NNP
Dash/NNP
would/MD
appear/VB
to/TO
be/VB
a/DT
marketer/NN
's/POS
dream/NN
come/VBN
true/JJ
./.
The/DT
corporate/JJ
manager/NN
likes/VBZ
to/TO
dress/VB
smartly/RB
,/,
both/DT
on/IN
and/CC
off/IN
the/DT
job/NN
./.
She/PRP
owns/VBZ
a/DT
condominium/NN
in/IN
Chicago/NNP
and/CC
takes/VBZ
pride/NN
in/IN
furnishing/VBG
it/PRP
well/RB
./.
Yet/CC
Ms./NNP
Dash/NNP
,/,
in/IN
her/PRP$
mid-30s/CD
,/,
loathes/VBZ
shopping/NN
./.
Lousy/JJ
service/NN
and/CC
poor/JJ
selections/NNS
at/IN
many/JJ
stores/NNS
have/VBP
turned/VBN
a/DT
once/RB
favorite/JJ
pastime/NN
into/IN
what/WP
she/PRP
calls/VBZ
a/DT
``/``
frustrating/JJ
''/''
experience/NN
./.
These/DT
days/NNS
,/,
she/PRP
would/MD
rather/RB
exercise/VB
,/,
visit/VB
friends/NNS
or/CC
read/VBN
./.
``/``
If/IN
you/PRP
do/VBP
n't/RB
make/VB
it/PRP
reasonably/RB
easy/JJ
for/IN
me/PRP
,/,
''/''
she/PRP
says/VBZ
of/IN
shopping/NN
,/,
``/``
I/PRP
'm/VBP
not/RB
going/VBG
to/TO
waste/VB
my/PRP$
time/NN
./.
''/''
Ms./NNP
Dash/NNP
is/VBZ
far/RB
from/IN
alone/RB
./.
Shopping/NN
has/VBZ
become/VBN
such/PDT
a/DT
chore/NN
that/IN
more/JJR
people/NNS
hate/VBP
browsing/VBG
in/IN
stores/NNS
than/IN
hate/VBP
doing/VBG
household/NN
work/NN
,/,
according/VBG
to/TO
The/NNP
Wall/NNP
Street/NNP
Journal/NNP
's/POS
``/``
American/NNP
Way/NN
of/IN
Buying/NNP
''/''
survey/NN
./.
Nearly/RB
a/DT
third/JJ
of/IN
the/DT
2,064/CD
people/NNS
interviewed/VBN
by/IN
the/DT
pollster/NN
Peter/NNP
D./NNP
Hart/NNP
Research/NNP
Associates/NNPS
said/VBD
they/PRP
``/``
do/VB
not/RB
enjoy/VB
at/IN
all/DT
''/''
window-shopping/NN
or/CC
browsing/NN
./.
Yankelovich/NNP
,/,
Clancy/NNP
,/,
Shulman/NNP
,/,
a/DT
market/NN
research/NN
firm/NN
in/IN
Westport/NNP
,/,
Conn./NNP
,/,
warns/VBZ
clients/NNS
that/IN
Americans/NNPS
'/POS
love/NN
affair/NN
with/IN
shopping/NN
is/VBZ
on/IN
the/DT
rocks/NNS
:/:
More/JJR
than/IN
half/PDT
the/DT
women/NNS
it/PRP
has/VBZ
surveyed/VBN
in/IN
recent/JJ
years/NNS
,/,
and/CC
an/DT
even/RB
larger/JJR
percentage/NN
of/IN
men/NNS
,/,
say/VBP
shopping/NN
for/IN
clothes/NNS
is/VBZ
a/DT
hassle/NN
./.
Stressed-out/JJ
consumers/NNS
--/:
juggling/VBG
jobs/NNS
,/,
families/NNS
and/CC
leisure/NN
activities/NNS
--/:
feel/VBP
they/PRP
have/VBP
less/JJR
time/NN
to/TO
shop/NN
./.
They/PRP
also/RB
complain/VBP
about/IN
obnoxious/JJ
and/CC
poorly/RB
trained/VBN
salespeople/NN
,/,
lower/JJR
quality/NN
merchandise/NN
and/CC
exorbitant/JJ
prices/NNS
./.
But/CC
underlying/VBG
these/DT
complaints/NNS
is/VBZ
a/DT
more/RBR
far-reaching/JJ
change/NN
:/:
For/IN
many/JJ
shoppers/NNS
,/,
the/DT
thrill/NN
is/VBZ
gone/VBN
./.
Back/RB
in/IN
the/DT
1970s/CD
,/,
when/WRB
malls/NNS
were/VBD
sprouting/VBG
across/IN
the/DT
country/NN
,/,
consumers/NNS
were/VBD
content/JJ
to/TO
browse/VB
away/RB
an/DT
afternoon/NN
and/CC
buy/VB
whatever/WDT
struck/VBD
their/PRP$
fancy/NN
./.
Then/RB
in/IN
the/DT
early/JJ
1980s/CD
,/,
Americans/NNPS
viewed/VBD
shopping/NN
as/IN
a/DT
quest/NN
for/IN
the/DT
trendiest/JJS
merchandise/NN
or/CC
the/DT
best/JJS
bargains/NNS
they/PRP
could/MD
brag/VB
about/IN
to/TO
their/PRP$
friends/NNS
./.
Now/RB
,/,
on/IN
the/DT
eve/NN
of/IN
the/DT
1990s/CD
,/,
consumer/NN
researchers/NNS
say/VBP
that/IN
for/IN
most/JJS
people/NNS
,/,
shopping/NN
is/VBZ
simply/RB
less/JJR
fun/NN
./.
Retailers/NNS
hawk/VBP
look-alike/JJ
merchandise/NN
in/IN
stores/NNS
that/WDT
are/VBP
numbingly/RB
similar/JJ
in/IN
appearance/NN
./.
Shopping/NN
has/VBZ
become/VBN
``/``
just/RB
one/CD
of/IN
the/DT
activities/NNS
that/IN
we/PRP
have/VBP
to/TO
do/VB
,/,
''/''
says/VBZ
Susan/NNP
Hayward/NNP
of/IN
Yankelovich/NNP
./.
``/``
It/PRP
's/VBZ
not/RB
an/DT
end/NN
in/IN
itself/PRP
anymore/RB
./.
''/''
In/IN
the/DT
Journal/NNP
poll/NN
,/,
more/JJR
than/IN
a/DT
third/JJ
of/IN
the/DT
people/NNS
interviewed/VBN
said/VBD
they/PRP
probably/RB
would/MD
n't/RB
spend/VB
a/DT
free/JJ
hour/NN
poking/VBG
around/IN
in/IN
stores/NNS
,/,
even/RB
if/IN
a/DT
prime/JJ
shopping/NN
district/NN
were/VBD
nearby/JJ
./.
That/DT
is/VBZ
n't/RB
to/TO
say/VB
consumers/NNS
do/VBP
n't/RB
like/VB
new/JJ
things/NNS
./.
But/CC
when/WRB
they/PRP
go/VBP
to/TO
a/DT
store/NN
today/NN
,/,
they/PRP
're/VBP
more/RBR
likely/JJ
to/TO
think/VB
of/IN
the/DT
trip/NN
as/IN
a/DT
mission/NN
rather/RB
than/IN
an/DT
adventure/NN
./.
``/``
They/PRP
're/VBP
buyers/NNS
as/IN
opposed/VBN
to/TO
shoppers/NNS
,/,
''/''
says/VBZ
Thomas/NNP
Rauh/NNP
,/,
a/DT
retail/JJ
consultant/NN
at/IN
the/DT
accounting/NN
firm/NN
of/IN
Ernst/NNP
&/CC
Young/NNP
./.
Surveys/NNS
and/CC
focus-group/JJ
research/NN
show/VBP
that/IN
most/JJS
people/NNS
are/VBP
indeed/RB
shopping/VBG
more/RBR
purposefully/RB
./.
Consumers/NNS
visit/VBP
fewer/JJR
stores/NNS
per/IN
trip/NN
an/DT
average/NN
of/IN
three/CD
last/JJ
year/NN
,/,
down/IN
from/IN
3.6/CD
in/IN
1982/CD
,/,
according/VBG
to/TO
consultant/NN
Stillerman/NNP
Jones/NNP
&/CC
Co/NNP
./.
less/JJR
time/NN
in/IN
malls/NNS
an/DT
average/NN
of/IN
68/CD
minutes/NNS
per/IN
trip/NN
last/JJ
year/NN
,/,
down/IN
from/IN
90/CD
minutes/NNS
in/IN
1982/CD
``/``
I/PRP
leave/VBP
rather/RB
than/IN
hunt/VBP
for/IN
something/NN
,/,
''/''
snaps/VBZ
Lisa/NNP
Max/NNP
,/,
a/DT
46-year-old/JJ
real/JJ
estate/NN
broker/NN
in/IN
New/NNP
York/NNP
./.
Despite/IN
such/JJ
negative/JJ
attitudes/NNS
,/,
retailers/NNS
generally/RB
say/VBP
consumers/NNS
are/VBP
n't/RB
cutting/VBG
back/RB
on/IN
what/WP
they/PRP
buy/VBP
./.
``/``
If/IN
it/PRP
is/VBZ
dropping/VBG
off/IN
,/,
it/PRP
would/MD
be/VB
more/RBR
likely/JJ
that/IN
they/PRP
're/VBP
shopping/VBG
less/RBR
often/RB
and/CC
buying/VBG
more/RBR
when/WRB
they/PRP
do/VBP
shop/VB
,/,
''/''
says/VBZ
Michael/NNP
Wellman/NNP
,/,
vice/NN
president/NN
of/IN
marketing/NN
at/IN
K/NNP
mart/NNP
Corp/NNP
./.
``/``
There/EX
's/VBZ
no/DT
question/NN
our/PRP$
customers/NNS
'/POS
time/NN
has/VBZ
become/VBN
more/RBR
valuable/JJ
than/IN
ever/RB
,/,
''/''
says/VBZ
Stephen/NNP
Watson/NNP
,/,
chairman/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
Dayton/NNP
Hudson/NNP
Corp./NNP
's/POS
department/NN
store/NN
unit/NN
./.
But/CC
he/PRP
contends/VBZ
the/DT
company/NN
's/POS
record/NN
sales/NNS
and/CC
profits/NNS
indicate/VBP
it/PRP
is/VBZ
making/VBG
the/DT
shopping/NN
experience/NN
easier/JJR
./.
For/IN
example/NN
,/,
the/DT
company/NN
is/VBZ
hiring/VBG
more/JJR
sales/NNS
people/NNS
than/IN
in/IN
the/DT
past/NN
and/CC
paying/VBG
them/PRP
more/RBR
./.
It/PRP
also/RB
is/VBZ
laying/VBG
out/IN
remodeled/VBN
and/CC
new/JJ
stores/NNS
with/IN
a/DT
center-aisle/NN
design/NN
and/CC
installing/VBG
escalators/NNS
and/CC
elevators/NNS
in/IN
more/JJR
convenient/JJ
central/JJ
locations/NNS
./.
Of/IN
course/NN
,/,
there/EX
are/VBP
still/RB
people/NNS
for/IN
whom/WP
shopping/NN
is/VBZ
a/DT
joy/NN
,/,
even/RB
a/DT
passion/NN
./.
But/CC
some/DT
of/IN
those/DT
people/NNS
have/VBP
complaints/NNS
,/,
too/RB
./.
Take/VB
Cyd/NNP
Hinman/NNP
,/,
a/DT
mother/NN
of/IN
two/CD
from/IN
Norwood/NNP
,/,
Mass/NNP
./.
She/PRP
often/RB
enjoys/VBZ
shopping/NN
,/,
but/CC
is/VBZ
so/RB
fed/VBN
up/IN
with/IN
the/DT
clerks/NNS
at/IN
a/DT
nearby/JJ
Filene/NNP
's/POS
department/NN
store/NN
that/IN
she/PRP
refers/VBZ
to/TO
them/PRP
as/IN
``/``
idiots/NNS
./.
''/''
Twice/RB
,/,
Mrs./NNP
Hinman/NNP
picked/VBD
merchandise/NN
off/IN
Filene/NNP
's/POS
racks/NNS
labeled/VBN
with/IN
``/``
sale/NN
''/''
signs/NNS
,/,
only/RB
to/TO
be/VB
told/VBN
when/WRB
she/PRP
got/VBD
to/TO
the/DT
cash/NN
register/NN
that/IN
the/DT
goods/NNS
were/VBD
n't/RB
on/IN
special/NN
./.
The/DT
second/JJ
time/NN
,/,
she/PRP
demanded/VBD
that/IN
she/PRP
receive/VB
the/DT
discount/NN
anyway/RB
,/,
and/CC
the/DT
clerk/NN
gave/VBD
in/IN
./.
``/``
I/PRP
'm/VBP
willing/JJ
to/TO
spend/VB
a/DT
lot/NN
of/IN
money/NN
,/,
''/''
she/PRP
says/VBZ
,/,
``/``
but/CC
not/RB
if/IN
I/PRP
feel/VBP
like/IN
I/PRP
'm/VBP
getting/VBG
jerked/VBN
around/IN
./.
''/''
Complaints/NNS
about/IN
service/NN
are/VBP
so/RB
widespread/JJ
that/IN
six/CD
of/IN
10/CD
people/NNS
in/IN
the/DT
Journal/NNP
survey/NN
said/VBD
they/PRP
have/VBP
boycotted/VBN
stores/NNS
because/IN
of/IN
the/DT
way/NN
they/PRP
were/VBD
treated/VBN
./.
The/DT
percentage/NN
was/VBD
even/RB
higher/JJR
--/:
roughly/RB
three-quarters/NNS
--/:
among/IN
professionals/NNS
and/CC
those/DT
earning/VBG
more/RBR
than/IN
$/$
50,000/CD
a/DT
year/NN
./.
Service/NN
has/VBZ
declined/VBN
just/RB
at/IN
a/DT
time/NN
when/WRB
consumers/NNS
are/VBP
more/RBR
impatient/JJ
than/IN
ever/RB
./.
``/``
The/DT
whole/JJ
tone/NN
of/IN
voice/NN
is/VBZ
different/JJ
now/RB
in/IN
terms/NNS
of/IN
what/WP
people/NNS
expect/VBP
from/IN
a/DT
store/NN
,/,
''/''
says/VBZ
William/NNP
Ress/NNP
,/,
whose/WP$
Columbus/NNP
,/,
Ohio/NNP
,/,
management/NN
consulting/VBG
firm/NN
has/VBZ
surveyed/VBN
consumers/NNS
for/IN
more/RBR
than/IN
20/CD
years/NNS
./.
Despite/IN
the/DT
rising/VBG
resentment/NN
,/,
few/JJ
stores/NNS
are/VBP
making/VBG
shopping/NN
more/RBR
appealing/JJ
./.
Sales/NNS
people/NNS
spraying/VBG
perfume/NN
still/RB
assault/VBP
shoppers/NNS
at/IN
many/JJ
department/NN
stores/NNS
,/,
even/RB
though/IN
some/DT
consumers/NNS
complain/VBP
that/IN
the/DT
spritzers/NNS
could/MD
provide/VB
a/DT
far/RB
more/RBR
useful/JJ
service/NN
if/IN
they/PRP
were/VBD
trained/VBN
to/TO
operate/VB
a/DT
cash/NN
register/NN
./.
Consumers/NNS
want/VBP
selection/NN
to/TO
be/VB
easy/JJ
and/CC
efficient/JJ
,/,
but/CC
that/DT
's/VBZ
not/RB
what/WP
most/JJS
merchandisers/NNS
want/VBP
./.
Retailers/NNS
generally/RB
go/VBP
to/TO
lengths/NNS
to/TO
keep/VB
shoppers/NNS
in/IN
their/PRP$
stores/NNS
as/RB
long/RB
as/IN
possible/JJ
./.
Many/JJ
stores/NNS
,/,
for/IN
example/NN
,/,
require/VBP
customers/NNS
to/TO
walk/VB
through/IN
a/DT
maze/NN
of/IN
boutiques/NNS
designed/VBN
to/TO
show/VB
off/IN
their/PRP$
wares/NNS
just/RB
to/TO
find/VB
,/,
say/VB
,/,
a/DT
simple/JJ
white/JJ
blouse/NN
./.
But/CC
rather/RB
than/IN
tempt/VB
people/NNS
to/TO
buy/VB
more/JJR
,/,
consumer/NN
researchers/NNS
say/VBP
,/,
this/DT
tactic/NN
just/RB
irritates/VBZ
many/JJ
shoppers/NNS
./.
Over/IN
half/PDT
the/DT
respondents/NNS
in/IN
the/DT
Journal/NNP
survey/NN
said/VBD
they/PRP
rarely/RB
buy/VBP
on/IN
impulse/NN
anyway/RB
./.
So/RB
what/WP
should/MD
a/DT
retailer/NN
do/VB
?/.
``/``
Those/DT
that/WDT
do/VBP
the/DT
best/JJS
job/NN
of/IN
making/VBG
the/DT
shopping/NN
experience/NN
enjoyable/JJ
and/CC
making/VBG
the/DT
customer/NN
feel/VB
like/IN
a/DT
human/JJ
being/VBG
are/VBP
very/RB
well/RB
rewarded/VBN
,/,
''/''
says/VBZ
Leo/NNP
J./NNP
Shapiro/NNP
,/,
a/DT
market/NN
researcher/NN
in/IN
Chicago/NNP
./.
He/PRP
cites/VBZ
Nordstrom/NNP
Inc./NNP
,/,
the/DT
Seattle-based/JJ
department/NN
store/NN
./.
The/DT
chain/NN
's/POS
strategy/NN
:/:
pay/VB
sales/NNS
people/NNS
an/DT
incentive/NN
to/TO
provide/VB
good/JJ
service/NN
and/CC
keep/VB
more/JJR
merchandise/NN
in/IN
stock/NN
than/IN
competitors/NNS
./.
Other/JJ
retailers/NNS
are/VBP
trying/VBG
to/TO
mollify/VB
miffed/VBN
shoppers/NNS
by/IN
doing/VBG
away/RB
with/IN
their/PRP$
decades-old/JJ
practice/NN
of/IN
setting/VBG
high/JJ
``/``
regular/JJ
''/''
prices/NNS
that/WDT
can/MD
later/RB
be/VB
cut/VBN
to/TO
``/``
sale/NN
''/''
levels/NNS
./.
Under/IN
a/DT
new/JJ
approach/NN
being/VBG
hyped/NN
as/IN
``/``
everyday/JJ
low/JJ
pricing/NN
,/,
''/''
retailers/NNS
such/JJ
as/IN
Sears/NNP
,/,
Roebuck/NNP
&/CC
Co./NNP
now/RB
run/VBP
fewer/JJR
sales/NNS
./.
Instead/RB
,/,
they/PRP
set/VBP
prices/NNS
between/IN
their/PRP$
old/JJ
``/``
sale/NN
''/''
and/CC
``/``
regular/JJ
''/''
prices/NNS
./.
Last/JJ
month/NN
,/,
R.H./NNP
Macy/NNP
&/CC
Co./NNP
started/VBD
promising/VBG
in/IN
ads/NNS
that/IN
shoppers/NNS
in/IN
search/NN
of/IN
women/NNS
's/POS
coats/NNS
could/MD
``/``
cut/VB
through/IN
all/PDT
the/DT
confusing/JJ
sales/NNS
,/,
special/JJ
buys/NNS
and/CC
clearances/NNS
out/IN
there/EX
''/''
and/CC
pay/VB
what/WP
Macy/NNP
's/POS
says/VBZ
is/VBZ
the/DT
``/``
lowest/JJS
prices/NNS
.../:
every/DT
day/NN
./.
''/''
Sears/NNS
started/VBD
its/PRP$
``/``
everyday/JJ
pricing/NN
''/''
approach/NN
in/IN
March/NNP
,/,
but/CC
so/RB
far/JJ
sales/NNS
results/NNS
do/VBP
n't/RB
reflect/VB
strong/JJ
consumer/NN
response/NN
./.
Still/RB
,/,
such/PDT
a/DT
pricing/VBG
strategy/NN
just/RB
might/MD
appeal/VB
to/TO
people/NNS
like/IN
Connie/NNP
Bates/NNP
,/,
a/DT
respondent/NN
in/IN
the/DT
Journal/NNP
survey/NN
./.
She/PRP
recently/RB
walked/VBD
out/IN
of/IN
a/DT
furniture/NN
store/NN
because/IN
the/DT
salesman/NN
offered/VBD
to/TO
cut/VB
the/DT
price/NN
of/IN
a/DT
sectional/JJ
couch/NN
three/CD
times/NNS
./.
When/WRB
a/DT
store/NN
keeps/VBZ
dropping/VBG
prices/NNS
,/,
the/DT
Farmington/NNP
,/,
Mich./NNP
,/,
resident/NN
says/VBZ
,/,
``/``
I/PRP
get/VBP
suspicious/JJ
that/IN
they/PRP
're/VBP
trying/VBG
to/TO
get/VB
the/DT
most/JJS
they/PRP
can/MD
out/IN
of/IN
you/PRP
./.
''/''
story/NN
:/:
``/``
Diehards/NNS
Say/VBP
The/DT
Experience/NN
Feels/VBZ
Too/RB
Good/JJ
''/''
--/:
WSJ/NNP
Oct./NNP
13/CD
,/,
1989/CD
)/)
The/DT
European/NNP
Community/NNP
and/CC
Switzerland/NNP
signed/VBD
a/DT
treaty/NN
granting/VBG
reciprocal/JJ
access/NN
to/TO
their/PRP$
markets/NNS
for/IN
most/JJS
kinds/NNS
of/IN
insurance/NN
products/NNS
and/CC
services/NNS
./.
The/DT
accord/NN
is/VBZ
an/DT
example/NN
``/``
of/IN
the/DT
kind/NN
of/IN
relations/NNS
the/DT
community/NN
wishes/VBZ
to/TO
develop/VB
with/IN
its/PRP$
European/JJ
partners/NNS
,/,
''/''
said/VBD
Edith/NNP
Cresson/NNP
,/,
the/DT
French/JJ
minister/NN
for/IN
European/JJ
affairs/NNS
who/WP
presided/VBD
over/IN
a/DT
recent/JJ
EC/NNP
Council/NNP
of/IN
Ministers/NNPS
meeting/NN
./.
As/IN
European/JJ
partners/NNS
,/,
Mrs./NNP
Cresson/NNP
cited/VBD
in/IN
particular/JJ
the/DT
members/NNS
of/IN
the/DT
European/NNP
Free/NNP
Trade/NNP
Association/NNP
,/,
composed/VBN
of/IN
Switzerland/NNP
,/,
Austria/NNP
,/,
Sweden/NNP
,/,
Norway/NNP
,/,
Finland/NNP
and/CC
Iceland/NNP
./.
EC/NNP
and/CC
association/NN
ministers/NNS
are/VBP
scheduled/VBN
to/TO
meet/VB
Dec./NNP
19/CD
to/TO
discuss/VB
economic/JJ
cooperation/NN
./.
Mrs./NNP
Cresson/NNP
said/VBD
she/PRP
hopes/VBZ
the/DT
talks/NNS
will/MD
show/VB
``/``
a/DT
common/JJ
resolve/NN
to/TO
go/VB
beyond/IN
bilateral/JJ
,/,
sectorial/JJ
agreements/NNS
,/,
''/''
such/JJ
as/IN
the/DT
one/CD
just/RB
signed/VBN
with/IN
Switzerland/NNP
./.
Swiss/NNP
President/NNP
Jean-Pascal/NNP
Delamuraz/NNP
said/VBD
the/DT
insurance/NN
pact/NN
could/MD
``/``
pioneer/VB
''/''
a/DT
broader/JJR
agreement/NN
between/IN
the/DT
Community/NN
and/CC
the/DT
association/NN
./.
The/DT
treaty/NN
allows/VBZ
Swiss/NNP
insurance/NN
companies/NNS
to/TO
open/JJ
branches/NNS
in/IN
the/DT
EC/NNP
,/,
and/CC
vice/RB
versa/RB
,/,
without/IN
restriction/NN
./.
But/CC
it/PRP
does/VBZ
n't/RB
permit/VB
selling/VBG
insurance/NN
across/IN
borders/NNS
without/IN
establishing/VBG
branches/NNS
./.
The/DT
treaty/NN
needs/VBZ
to/TO
be/VB
approved/VBN
by/IN
the/DT
European/NNP
Parliament/NNP
,/,
which/WDT
is/VBZ
expected/VBN
to/TO
endorse/VB
the/DT
measure/NN
,/,
EC/NNP
officials/NNS
said/VBD
./.
The/DT
agreement/NN
,/,
which/WDT
had/VBD
been/VBN
16/CD
years/NNS
in/IN
the/DT
making/NN
,/,
covers/VBZ
general-insurance/NN
services/NNS
and/CC
excludes/VBZ
life/NN
insurance/NN
and/CC
reinsurance/NN
./.
Because/IN
Swiss/NNP
and/CC
EC/NNP
insurers/NNS
are/VBP
widely/RB
present/JJ
on/IN
each/DT
other/JJ
's/POS
markets/NNS
,/,
the/DT
accord/NN
is/VBZ
n't/RB
expected/VBN
to/TO
substantially/RB
increase/VB
near-term/JJ
competition/NN
./.
An/DT
important/JJ
element/NN
in/IN
the/DT
accord/NN
,/,
EC/NNP
officials/NNS
said/VBD
,/,
is/VBZ
a/DT
clause/NN
that/WDT
provides/VBZ
for/IN
bilateral/JJ
consultations/NNS
when/WRB
one/CD
party/NN
decides/VBZ
to/TO
modify/VB
its/PRP$
internal/JJ
insurance/NN
legislation/NN
./.
A/DT
joint/JJ
panel/NN
would/MD
decide/VB
whether/IN
the/DT
changes/NNS
are/VBP
compatible/JJ
with/IN
the/DT
treaty/NN
or/CC
whether/IN
the/DT
treaty/NN
needs/VBZ
to/TO
be/VB
amended/VBN
to/TO
cope/VB
with/IN
the/DT
changes/NNS
./.
Mrs./NNP
Cresson/NNP
said/VBD
a/DT
similar/JJ
clause/NN
could/MD
be/VB
useful/JJ
in/IN
future/JJ
accords/NNS
between/IN
the/DT
EC/NNP
and/CC
other/JJ
countries/NNS
./.
Chief/NN
executive/NN
officers/NNS
in/IN
the/DT
New/NNP
York/NNP
region/NN
say/VBP
they/PRP
share/VBP
a/DT
national/JJ
pessimism/NN
about/IN
the/DT
economy/NN
,/,
yet/RB
are/VBP
bullish/JJ
on/IN
their/PRP$
own/JJ
prospects/NNS
,/,
according/VBG
to/TO
a/DT
study/NN
of/IN
business/NN
executives/NNS
./.
One/CD
particularly/RB
positive/JJ
note/NN
in/IN
the/DT
study/NN
of/IN
chief/NN
executives/NNS
in/IN
the/DT
tri-state/JJ
area/NN
,/,
commissioned/VBN
by/IN
National/NNP
Westminster/NNP
Bancorp/NNP
,/,
is/VBZ
that/IN
as/RB
many/JJ
as/IN
88/CD
%/NN
of/IN
the/DT
executives/NNS
intend/VBP
to/TO
expand/VB
their/PRP$
businesses/NNS
or/CC
at/IN
least/JJS
maintain/VB
employment/NN
levels/NNS
in/IN
1990/CD
./.
Employment/NN
at/IN
financial-related/JJ
companies/NNS
in/IN
the/DT
New/NNP
York/NNP
area/NN
were/VBD
hit/VBN
hard/RB
after/IN
the/DT
1987/CD
stock/NN
market/NN
crash/NN
./.
The/DT
survey/NN
examined/VBD
the/DT
opinions/NNS
of/IN
550/CD
randomly/RB
selected/VBN
companies/NNS
in/IN
the/DT
New/NNP
York/NNP
metropolitan/JJ
area/NN
--/:
Connecticut/NNP
,/,
Long/NNP
Island/NNP
,/,
New/NNP
York/NNP
City/NNP
,/,
Westchester/NNP
County/NNP
and/CC
New/NNP
Jersey/NNP
--/:
with/IN
annual/JJ
sales/NNS
between/IN
$/$
5/CD
million/CD
and/CC
$/$
250/CD
million/CD
./.
Executives/NNS
in/IN
the/DT
area/NN
have/VBP
grown/VBN
more/RBR
pessimistic/JJ
about/IN
the/DT
performance/NN
of/IN
the/DT
national/JJ
economy/NN
./.
When/WRB
the/DT
study/NN
was/VBD
taken/VBN
in/IN
1988/CD
,/,
32/CD
%/NN
of/IN
the/DT
respondents/NNS
thought/VBD
the/DT
national/JJ
economy/NN
was/VBD
worse/JJR
that/IN
year/NN
than/IN
the/DT
year/NN
before/IN
,/,
while/IN
in/IN
1989/CD
,/,
that/DT
stance/NN
was/VBD
taken/VBN
by/IN
41/CD
%/NN
of/IN
the/DT
executives/NNS
./.
The/DT
pessimism/NN
was/VBD
greater/JJR
among/IN
the/DT
larger/JJR
--/:
and/CC
more/RBR
national/JJ
--/:
companies/NNS
./.
Looking/VBG
ahead/RB
,/,
the/DT
majority/NN
of/IN
area/NN
officials/NNS
expect/VBP
interest/NN
rates/NNS
to/TO
decline/VB
and/CC
inflation/NN
to/TO
rise/VB
,/,
while/IN
44/CD
%/NN
of/IN
the/DT
chief/NN
executives/NNS
feel/VBP
a/DT
recession/NN
is/VBZ
likely/JJ
by/IN
the/DT
end/NN
of/IN
On/IN
the/DT
regional/JJ
level/NN
,/,
executives/NNS
had/VBD
less/RBR
good/JJ
news/NN
to/TO
report/VB
about/IN
their/PRP$
own/JJ
businesses/NNS
./.
Only/RB
49/CD
%/NN
of/IN
the/DT
executives/NNS
reported/VBD
improved/VBN
company/NN
performance/NN
this/DT
year/NN
,/,
down/IN
from/IN
the/DT
60/CD
%/NN
in/IN
the/DT
1988/CD
study/NN
./.
Predictably/RB
,/,
the/DT
year/NN
ahead/RB
looks/VBZ
brighter/JJR
;/:
63/CD
%/NN
of/IN
the/DT
executives/NNS
anticipate/VBP
better/JJR
company/NN
performance/NN
in/IN
1990/CD
,/,
while/IN
only/RB
10/CD
%/NN
envision/VBP
a/DT
decline/NN
./.
A/DT
good/JJ
sign/NN
for/IN
the/DT
long-term/JJ
health/NN
of/IN
the/DT
region/NN
is/VBZ
that/IN
chief/NN
executives/NNS
were/VBD
generally/RB
``/``
quite/RB
satisfied/VBN
''/''
with/IN
the/DT
region/NN
as/IN
a/DT
business/NN
place/NN
,/,
saying/VBG
its/PRP$
benefits/NNS
consistently/RB
outweigh/VBP
drawbacks/NNS
./.
Highest/JJS
marks/NNS
went/VBD
to/TO
the/DT
availability/NN
of/IN
professional/JJ
business/NN
services/NNS
,/,
which/WDT
51/CD
%/NN
of/IN
the/DT
executives/NNS
consider/VBP
the/DT
top/JJ
benefit/NN
./.
The/DT
local/JJ
marketplace/NN
and/CC
availability/NN
of/IN
professional/JJ
employees/NNS
also/RB
were/VBD
ranked/VBN
high/RB
./.
Among/IN
major/JJ
drawbacks/NNS
to/TO
the/DT
region/NN
,/,
63/CD
%/NN
consider/VBP
the/DT
level/NN
of/IN
state/NN
taxes/NNS
at/IN
the/DT
top/NN
of/IN
the/DT
list/NN
,/,
followed/VBN
by/IN
54/CD
%/NN
who/WP
had/VBD
the/DT
same/JJ
opinion/NN
on/IN
local/JJ
taxes/NNS
./.
Coming/VBG
in/IN
third/JJ
,/,
40/CD
%/NN
said/VBD
it/PRP
was/VBD
the/DT
cost/NN
of/IN
non-professional/JJ
employees/NNS
./.
On/IN
questions/NNS
of/IN
employment/NN
,/,
40/CD
%/NN
of/IN
the/DT
executives/NNS
increased/VBD
their/PRP$
work/NN
force/NN
since/IN
last/JJ
year/NN
,/,
and/CC
44/CD
%/NN
expect/VBP
to/TO
expand/VB
next/JJ
year/NN
./.
Only/RB
9/CD
%/NN
reduced/VBD
their/PRP$
payrolls/NNS
in/IN
the/DT
past/NN
year/NN
./.
For/IN
the/DT
second/JJ
year/NN
in/IN
a/DT
row/NN
,/,
New/NNP
Jersey/NNP
was/VBD
rated/VBN
as/IN
the/DT
region/NN
's/POS
most/RBS
desirable/JJ
place/NN
to/TO
do/VB
business/NN
./.
Among/IN
all/DT
of/IN
the/DT
executives/NNS
surveyed/VBN
who/WP
would/MD
consider/VB
a/DT
move/NN
,/,
50/CD
%/NN
would/MD
look/VB
at/IN
New/NNP
Jersey/NNP
,/,
compared/VBN
with/IN
an/DT
average/JJ
23/CD
%/NN
who/WP
would/MD
consider/VB
other/JJ
states/NNS
in/IN
the/DT
region/NN
./.
In/IN
one/CD
of/IN
the/DT
highest/JJS
degrees/NNS
of/IN
loyalty/NN
shown/VBN
in/IN
the/DT
study/NN
,/,
of/IN
those/DT
New/NNP
Jersey/NNP
executives/NNS
considering/VBG
a/DT
move/NN
,/,
74/CD
%/NN
would/MD
stay/VB
within/IN
the/DT
state/NN
./.
But/CC
one-fourth/NN
of/IN
the/DT
state/NN
's/POS
executives/NNS
listed/VBD
transportation/NN
problems/NNS
as/IN
a/DT
drawback/NN
./.
Chief/NN
executives/NNS
in/IN
New/NNP
York/NNP
City/NNP
showed/VBD
a/DT
noticeably/RB
high/JJ
expectation/NN
of/IN
improved/VBN
company/NN
performance/NN
in/IN
the/DT
next/JJ
year/NN
./.
In/IN
New/NNP
York/NNP
,/,
75/CD
%/NN
of/IN
the/DT
executives/NNS
predict/VBP
their/PRP$
companies/NNS
'/POS
performance/NN
will/MD
improve/VB
in/IN
1990/CD
,/,
compared/VBN
with/IN
an/DT
average/NN
of/IN
63/CD
%/NN
from/IN
chief/NN
executives/NNS
from/IN
the/DT
other/JJ
locales/NNS
who/WP
feel/VBP
the/DT
same/JJ
way/NN
./.
Westchester/NNP
executives/NNS
reflected/VBD
the/DT
most/RBS
bullish/JJ
prospects/NNS
for/IN
employment/NN
./.
More/JJR
companies/NNS
in/IN
Westchester/NNP
than/IN
any/DT
other/JJ
location/NN
have/VBP
increased/VBN
the/DT
number/NN
of/IN
their/PRP$
employees/NNS
in/IN
the/DT
past/NN
year/NN
./.
In/IN
1990/CD
,/,
Westchester/NNP
chief/NN
executives/NNS
lead/VBP
the/DT
way/NN
in/IN
plans/NNS
to/TO
increase/VB
their/PRP$
number/NN
of/IN
employees/NNS
./.
In/IN
Westchester/NNP
,/,
51/CD
%/NN
of/IN
the/DT
executives/NNS
anticipate/VBP
hiring/VBG
more/RBR
,/,
while/IN
in/IN
Long/NNP
Island/NNP
that/DT
number/NN
was/VBD
39/CD
%/NN
and/CC
in/IN
Connecticut/NNP
42/CD
%/NN
./.
Ronald/NNP
J./NNP
Berens/NNP
was/VBD
elected/VBN
to/TO
the/DT
new/JJ
post/NN
of/IN
senior/JJ
vice/NN
president-U.S./NN
apparel/NN
group/NN
,/,
effective/JJ
Nov./NNP
1/CD
./.
He/PRP
will/MD
be/VB
responsible/JJ
for/IN
the/DT
apparel/NN
operations/NNS
of/IN
the/DT
retailer/NN
's/POS
Holtzman/NNP
's/POS
Little/NNP
Folk/NNP
Shop/NNP
Inc./NNP
and/CC
Richman/NNP
Brothers/NNPS
Co./NNP
units/NNS
and/CC
the/DT
Susie/NNP
's/POS
division/NN
of/IN
its/PRP$
Kinney/NNP
Shoe/NNP
Corp./NNP
unit/NN
./.
Mr./NNP
Berens/NNP
,/,
50/CD
years/NNS
old/JJ
,/,
currently/RB
is/VBZ
president/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
the/DT
Little/NNP
Folk/NNP
unit/NN
./.
Suzuki/NNP
Motor/NNP
Co./NNP
's/POS
U.S./NNP
sales/NNS
arm/NN
has/VBZ
named/VBN
Gary/NNP
Anderson/NNP
its/PRP$
top/NN
U.S./NNP
official/NN
in/IN
the/DT
wake/NN
of/IN
a/DT
series/NN
of/IN
resignations/NNS
last/JJ
month/NN
./.
Three/CD
senior/JJ
executives/NNS
,/,
all/DT
Americans/NNPS
,/,
quit/VBD
in/IN
September/NNP
./.
Doug/NNP
Mazza/NNP
,/,
former/JJ
vice/NN
president/NN
and/CC
general/JJ
manager/NN
and/CC
at/IN
the/DT
time/NN
the/DT
top/JJ
American/NNP
,/,
said/VBD
in/IN
a/DT
prepared/VBN
statement/NN
that/IN
his/PRP$
and/CC
the/DT
other/JJ
resignations/NNS
were/VBD
prompted/VBN
by/IN
``/``
changes/NNS
in/IN
the/DT
company/NN
's/POS
operating/VBG
goals/NNS
and/CC
philosophies/NNS
./.
''/''
Mr./NNP
Anderson/NNP
,/,
who/WP
joined/VBD
American/NNP
Suzuki/NNP
Motor/NNP
Corp./NNP
in/IN
June/NNP
1987/CD
,/,
gets/VBZ
the/DT
title/NN
of/IN
marketing/NN
director/NN
for/IN
the/DT
company/NN
's/POS
automotive/JJ
division/NN
./.
He/PRP
inherits/VBZ
``/``
bits/NNS
of/IN
several/JJ
positions/NNS
,/,
''/''
said/VBD
a/DT
Suzuki/NNP
spokeswoman/NN
,/,
who/WP
added/VBD
that/IN
a/DT
reorganization/NN
last/JJ
month/NN
has/VBZ
eliminated/VBN
some/DT
previous/JJ
posts/NNS
./.
In/IN
his/PRP$
new/JJ
job/NN
,/,
Mr./NNP
Anderson/NNP
will/MD
oversee/VB
all/DT
sales/NNS
,/,
advertising/NN
and/CC
dealer/NN
development/NN
activities/NNS
in/IN
addition/NN
to/TO
formulating/VBG
marketing/NN
strategies/NNS
./.
Some/DT
of/IN
these/DT
duties/NNS
had/VBD
been/VBN
handled/VBN
by/IN
Mr./NNP
Mazza/NNP
and/CC
others/NNS
by/IN
John/NNP
Dorsey/NNP
,/,
former/JJ
director/NN
of/IN
sales/NNS
,/,
and/CC
Larry/NNP
Messelt/NNP
,/,
former/JJ
national/JJ
sales/NNS
manager/NN
./.
Messrs./NNP
Dorsey/NNP
and/CC
Messelt/NNP
were/VBD
the/DT
other/JJ
two/CD
executives/NNS
who/WP
resigned/VBD
in/IN
September/NNP
./.
Suzuki/NNP
sales/NNS
so/RB
far/RB
this/DT
year/NN
,/,
at/IN
24,405/CD
cars/NNS
and/CC
sport/NN
utility/NN
vehicles/NNS
,/,
are/VBP
less/RBR
than/IN
half/PDT
the/DT
level/NN
of/IN
a/DT
year/NN
ago/IN
,/,
despite/IN
the/DT
introduction/NN
of/IN
two/CD
additional/JJ
vehicles/NNS
,/,
including/VBG
Suzuki/NNP
's/POS
first/JJ
U.S./NNP
car/NN
./.
The/DT
company/NN
has/VBZ
n't/RB
recovered/VBN
from/IN
claims/NNS
by/IN
Consumer/NNP
Reports/NNPS
magazine/NN
that/IN
its/PRP$
Samurai/NNP
utility/NN
vehicle/NN
was/VBD
unsafe/JJ
,/,
even/RB
though/IN
the/DT
National/NNP
Highway/NNP
Traffic/NNP
Safety/NNP
Administration/NNP
refused/VBD
to/TO
open/VB
a/DT
safety/NN
investigation/NN
into/IN
the/DT
allegations/NNS
./.
``/``
Suzuki/NNP
recognizes/VBZ
its/PRP$
responsibility/NN
to/TO
boost/VB
dealer/NN
confidence/NN
and/CC
improve/VB
direct/JJ
communication/NN
with/IN
its/PRP$
dealers/NNS
and/CC
field/NN
personnel/NNS
on/IN
its/PRP$
plans/NNS
and/CC
strategies/NNS
,/,
''/''
said/VBD
Mr./NNP
Anderson/NNP
in/IN
a/DT
prepared/VBN
statement/NN
./.
Mr./NNP
Anderson/NNP
was/VBD
most/RBS
recently/RB
Suzuki/NNP
's/POS
New/NNP
York/NNP
regional/JJ
sales/NNS
manager/NN
./.
He/PRP
also/RB
served/VBD
as/IN
manager/NN
of/IN
dealer/NN
development/NN
./.
Cummins/NNP
Engine/NNP
Co./NNP
shares/NNS
dropped/VBD
yesterday/NN
after/IN
the/DT
company/NN
disclosed/VBD
it/PRP
will/MD
have/VB
to/TO
correct/VB
defects/NNS
in/IN
pistons/NNS
installed/VBN
in/IN
some/DT
of/IN
its/PRP$
engines/NNS
./.
In/IN
a/DT
terse/JJ
release/NN
,/,
the/DT
maker/NN
of/IN
diesel/NN
engines/NNS
,/,
parts/NNS
and/CC
power/NN
systems/NNS
said/VBD
it/PRP
has/VBZ
``/``
identified/VBN
a/DT
problem/NN
''/''
with/IN
pistons/NNS
used/VBN
in/IN
its/PRP$
model/NN
K/NNP
and/CC
KV/NNP
diesels/NNS
since/IN
May/NNP
1/CD
./.
The/DT
high-horsepower/JJ
motors/NNS
are/VBP
used/VBN
in/IN
heavy/JJ
applications/NNS
such/JJ
as/IN
construction/NN
and/CC
mining/NN
equipment/NN
./.
Cummins/NNP
said/VBD
the/DT
problem/NN
relates/VBZ
to/TO
recent/JJ
modifications/NNS
in/IN
the/DT
design/NN
of/IN
a/DT
piston/NN
it/PRP
buys/VBZ
from/IN
an/DT
outside/JJ
supplier/NN
./.
None/NN
of/IN
the/DT
engines/NNS
have/VBP
failed/VBN
to/TO
date/NN
,/,
said/VBD
a/DT
spokeswoman/NN
,/,
adding/VBG
that/IN
the/DT
defect/NN
does/VBZ
n't/RB
represent/VB
a/DT
hazard/NN
./.
The/DT
company/NN
would/MD
n't/RB
identify/VB
the/DT
supplier/NN
,/,
nor/CC
would/MD
it/PRP
say/VB
how/WRB
many/JJ
of/IN
the/DT
defective/JJ
engines/NNS
it/PRP
has/VBZ
produced/VBN
./.
A/DT
spokeswoman/NN
noted/VBD
,/,
however/RB
,/,
that/IN
such/JJ
engines/NNS
represented/VBD
only/RB
2.5/CD
%/NN
of/IN
the/DT
company/NN
's/POS
overall/JJ
production/NN
in/IN
the/DT
first/JJ
six/CD
months/NNS
of/IN
the/DT
year/NN
./.
The/DT
company/NN
said/VBD
it/PRP
will/MD
replace/VB
all/DT
pistons/NNS
in/IN
the/DT
affected/VBN
engines/NNS
,/,
and/CC
as/IN
a/DT
result/NN
,/,
will/MD
``/``
supplement/VB
K/NNP
and/CC
KV/NNP
warranty/NN
accruals/NNS
./.
''/''
The/DT
spokeswoman/NN
declined/VBD
to/TO
say/VB
how/WRB
much/JJ
money/NN
the/DT
company/NN
will/MD
have/VB
to/TO
spend/VB
on/IN
the/DT
repairs/NNS
;/:
the/DT
company/NN
recently/RB
halted/VBD
production/NN
of/IN
the/DT
models/NNS
until/IN
replacement/NN
pistons/NNS
are/VBP
available/JJ
Oct./NNP
16/CD
./.
In/IN
composite/JJ
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
trading/NN
yesterday/NN
,/,
Cummins/NNP
shares/NNS
stumbled/VBD
$/$
2/CD
to/TO
close/VB
at/IN
$/$
52/CD
./.
The/DT
company/NN
's/POS
shares/NNS
traded/VBD
as/RB
high/JJ
as/IN
$/$
64/CD
last/JJ
month/NN
,/,
before/IN
Cummins/NNP
disclosed/VBD
in/IN
late/JJ
September/NNP
that/IN
it/PRP
expects/VBZ
to/TO
report/VB
a/DT
``/``
substantial/JJ
''/''
third-quarter/NN
loss/NN
because/IN
of/IN
deteriorating/VBG
demand/NN
and/CC
other/JJ
difficulties/NNS
./.
Major/JJ
steel/NN
companies/NNS
,/,
stung/VBN
by/IN
soft/JJ
demand/NN
from/IN
car/NN
makers/NNS
and/CC
eroding/VBG
prices/NNS
,/,
are/VBP
expected/VBN
to/TO
report/VB
that/IN
third-quarter/NN
operating/VBG
profits/NNS
plummeted/VBD
to/TO
possibly/RB
the/DT
lowest/JJS
levels/NNS
in/IN
two/CD
years/NNS
./.
``/``
This/DT
will/MD
be/VB
the/DT
worst/JJS
quarter/NN
since/IN
the/DT
third/JJ
quarter/NN
of/IN
1987/CD
,/,
when/WRB
steel/NN
companies/NNS
were/VBD
just/RB
on/IN
their/PRP$
way/NN
up/IN
,/,
''/''
predicted/VBD
John/NNP
Tumazos/NNP
,/,
an/DT
analyst/NN
with/IN
Donaldson/NNP
,/,
Lufkin/NNP
&/CC
Jenrette/NNP
Securities/NNPS
Corp/NNP
./.
The/DT
fourth/JJ
quarter/NN
could/MD
be/VB
even/RB
more/RBR
dismal/JJ
./.
``/``
We/PRP
are/VBP
in/IN
the/DT
midst/NN
of/IN
a/DT
very/RB
severe/JJ
price/NN
drop/NN
that/WDT
will/MD
really/RB
hit/VB
in/IN
the/DT
fourth/JJ
quarter/NN
,/,
''/''
said/VBD
Peter/NNP
Marcus/NNP
,/,
an/DT
analyst/NN
with/IN
PaineWebber/NNP
Inc/NNP
./.
A/DT
rebound/NN
in/IN
those/DT
prices/NNS
is/VBZ
expected/VBN
sometime/RB
after/IN
the/DT
winter/NN
of/IN
1990/CD
./.
After/IN
enjoying/VBG
a/DT
24-month/JJ
honeymoon/NN
of/IN
full/JJ
production/NN
,/,
rising/VBG
prices/NNS
and/CC
lower/JJR
costs/NNS
,/,
steelmakers/NNS
are/VBP
facing/VBG
declining/VBG
volume/NN
from/IN
disappointing/JJ
automotive/JJ
,/,
appliance/NN
and/CC
even/RB
capital/NN
goods/NNS
markets/NNS
./.
The/DT
consensus/NN
is/VBZ
that/IN
major/JJ
steelmakers/NNS
earned/VBD
between/IN
$/$
30/CD
and/CC
$/$
35/CD
for/IN
each/DT
ton/NN
of/IN
steel/NN
shipped/VBN
,/,
compared/VBN
with/IN
$/$
49/CD
in/IN
last/JJ
year/NN
's/POS
third/JJ
quarter/NN
./.
The/DT
latest/JJS
quarter/NN
is/VBZ
also/RB
down/IN
from/IN
the/DT
$/$
51/CD
a/DT
ton/NN
earned/VBN
in/IN
the/DT
second/JJ
quarter/NN
,/,
when/WRB
the/DT
industry/NN
benefited/VBD
from/IN
modest/JJ
price/NN
increases/NNS
and/CC
lower/JJR
raw/JJ
material/NN
costs/NNS
./.
Mr./NNP
Marcus/NNP
expects/VBZ
fourth-quarter/NN
profits/NNS
to/TO
drop/VB
to/TO
about/IN
$/$
25/CD
a/DT
ton/NN
./.
Along/IN
with/IN
lackluster/NN
sales/NNS
to/TO
car/NN
makers/NNS
--/:
their/PRP$
largest/JJS
customer/NN
--/:
steelmakers/NNS
are/VBP
losing/VBG
shipments/NNS
to/TO
their/PRP$
second/JJ
largest/JJS
customer/NN
,/,
steel/NN
service/NN
centers/NNS
,/,
which/WDT
are/VBP
trying/VBG
to/TO
reduce/VB
inventories/NNS
./.
The/DT
Steel/NNP
Service/NNP
Center/NNP
Institute/NNP
reported/VBD
in/IN
September/NNP
that/IN
72/CD
%/NN
of/IN
its/PRP$
members/NNS
believe/VBP
inventories/NNS
were/VBD
``/``
too/RB
high/JJ
,/,
''/''
with/IN
65/CD
%/NN
planning/VBG
to/TO
reduce/VB
those/DT
levels/NNS
during/IN
the/DT
next/JJ
six/CD
months/NNS
./.
Christopher/NNP
Plummer/NNP
,/,
an/DT
analyst/NN
with/IN
WEFA/NNP
Group/NNP
,/,
noted/VBD
that/IN
the/DT
capital/NN
goods/NNS
market/NN
,/,
which/WDT
had/VBD
been/VBN
stronger/JJR
than/IN
automotive/JJ
and/CC
appliance/NN
markets/NNS
,/,
is/VBZ
showing/VBG
signs/NNS
of/IN
weakness/NN
as/RB
well/RB
./.
Companies/NNS
,/,
concerned/VBN
about/IN
the/DT
economy/NN
and/CC
trying/VBG
to/TO
slash/VB
their/PRP$
own/JJ
costs/NNS
,/,
are/VBP
backing/VBG
off/IN
capital/NN
improvement/NN
programs/NNS
,/,
he/PRP
said/VBD
./.
Overall/JJ
,/,
second-half/JJ
steel/NN
shipments/NNS
are/VBP
expected/VBN
to/TO
drop/VB
about/IN
15/CD
%/NN
to/TO
36/CD
million/CD
or/CC
37/CD
million/CD
tons/NNS
,/,
which/WDT
some/DT
analysts/NNS
say/VBP
could/MD
cost/VB
the/DT
industry/NN
$/$
700/CD
million/CD
in/IN
lost/VBN
income/NN
./.
Two/CD
companies/NNS
,/,
in/IN
particular/JJ
,/,
were/VBD
hurt/VBN
by/IN
unusual/JJ
events/NNS
in/IN
the/DT
third/JJ
quarter/NN
./.
Bethlehem/NNP
Steel/NNP
Corp./NNP
,/,
the/DT
nation/NN
's/POS
second/JJ
largest/JJS
steelmaker/NN
,/,
was/VBD
hampered/VBN
by/IN
wildcat/JJ
coal/NN
strikes/NNS
,/,
a/DT
spot/NN
strike/NN
at/IN
its/PRP$
freight/NN
car/NN
operation/NN
and/CC
blast/NN
furnace/NN
problems/NNS
at/IN
its/PRP$
crown/NN
jewel/NN
Sparrows/NNP
Point/NNP
plant/NN
./.
Charles/NNP
Bradford/NNP
,/,
an/DT
analyst/NN
with/IN
Merrill/NNP
Lynch/NNP
Capital/NNP
Markets/NNPS
,/,
predicts/VBZ
Bethlehem/NNP
earnings/NNS
dropped/VBD
more/JJR
than/IN
two-thirds/NNS
to/TO
about/IN
50/CD
cents/NNS
a/DT
share/NN
,/,
from/IN
$/$
2.35/CD
a/DT
year/NN
ago/IN
,/,
excluding/VBG
major/JJ
nonrecurring/VBG
items/NNS
./.
National/NNP
Steel/NNP
Corp./NNP
,/,
the/DT
nation/NN
's/POS
sixth/JJ
largest/JJS
steel/NN
company/NN
,/,
predicted/VBD
at/IN
the/DT
beginning/NN
of/IN
1989/CD
that/IN
the/DT
third/JJ
quarter/NN
would/MD
be/VB
its/PRP$
best/RB
./.
However/RB
,/,
an/DT
initial/JJ
rejection/NN
by/IN
steelworkers/NNS
of/IN
a/DT
new/JJ
labor/NN
accord/NN
sent/VBD
nervous/JJ
National/NNP
Steel/NNP
customers/NNS
scrambling/VBG
for/IN
alternative/JJ
suppliers/NNS
./.
Moreover/RB
,/,
National/NNP
Steel/NNP
is/VBZ
tied/VBN
closely/RB
to/TO
the/DT
sluggish/JJ
automobile/NN
industry/NN
./.
One/CD
other/JJ
factor/NN
for/IN
some/DT
steelmakers/NNS
:/:
higher/JJR
costs/NNS
associated/VBN
with/IN
new/JJ
labor/NN
contracts/NNS
./.
Inland/NNP
Steel/NNP
Industries/NNPS
Inc./NNP
,/,
which/WDT
recently/RB
negotiated/VBD
an/DT
accord/NN
that/WDT
calls/VBZ
for/IN
immediate/JJ
and/CC
significant/JJ
wage/NN
increases/NNS
,/,
is/VBZ
expected/VBN
to/TO
see/VB
earnings/NNS
drop/VB
to/TO
less/RBR
than/IN
$/$
1/CD
a/DT
share/NN
from/IN
$/$
1.70/CD
a/DT
year/NN
earlier/RBR
because/IN
of/IN
the/DT
pact/NN
,/,
as/RB
well/RB
as/IN
disappointments/NNS
in/IN
its/PRP$
steel/NN
service/NN
center/NN
operations/NNS
./.
About/IN
the/DT
only/JJ
major/JJ
steelmaker/NN
expected/VBN
to/TO
post/VB
improved/VBN
results/NNS
is/VBZ
USX/NNP
Corp./NNP
,/,
which/WDT
once/RB
again/RB
will/MD
post/VB
gains/NNS
from/IN
asset/NN
sales/NNS
./.
Many/JJ
analysts/NNS
initially/RB
raised/VBD
earnings/NNS
forecasts/NNS
for/IN
the/DT
nation/NN
's/POS
largest/JJS
steelmaker/NN
as/IN
a/DT
result/NN
of/IN
the/DT
coming/VBG
sale/NN
of/IN
reserves/NNS
from/IN
its/PRP$
Texas/NNP
Oil/NNP
&/CC
Gas/NNP
unit/NN
./.
The/DT
expected/VBN
$/$
1/CD
billion-plus/JJ
proceeds/NNS
are/VBP
expected/VBN
to/TO
be/VB
used/VBN
to/TO
reduce/VB
debt/NN
and/CC
buy/VB
back/NN
shares/NNS
./.
One/CD
wild/JJ
card/NN
in/IN
USX/NNP
's/POS
future/JJ
earnings/NNS
is/VBZ
investor/NN
Carl/NNP
Icahn/NNP
,/,
who/WP
boosted/VBD
his/PRP$
stake/NN
in/IN
USX/NNP
and/CC
is/VBZ
urging/VBG
more/RBR
restructuring/NN
./.
Recent/JJ
order/NN
rates/NNS
indicate/VBP
that/IN
the/DT
fourth/JJ
quarter/NN
,/,
a/DT
time/NN
shipments/NNS
usually/RB
pick/VB
up/IN
,/,
will/MD
be/VB
weak/JJ
as/IN
well/RB
./.
Merrill/NNP
Lynch/NNP
's/POS
Mr./NNP
Bradford/NNP
said/VBD
,/,
``/``
We/PRP
have/VBP
n't/RB
seen/VBN
the/DT
pickup/NN
in/IN
flat/JJ
rolled/VBN
orders/NNS
that/IN
we/PRP
should/MD
have/VB
./.
''/''
Flat/JJ
rolled/JJ
steel/NN
is/VBZ
the/DT
industry/NN
's/POS
major/JJ
product/NN
./.
Typically/RB
,/,
steelmakers/NNS
would/MD
look/VB
to/TO
the/DT
export/NN
market/NN
to/TO
unload/VB
excess/JJ
capacity/NN
./.
But/CC
that/DT
market/NN
is/VBZ
hurting/VBG
as/RB
well/RB
./.
PaineWebber/NNP
noted/VBD
that/IN
the/DT
world/NN
steel/NN
export/NN
price/NN
of/IN
cold-rolled/JJ
steel/NN
has/VBZ
dropped/VBN
to/TO
$/$
460/CD
to/TO
$/$
480/CD
a/DT
metric/JJ
ton/NN
from/IN
a/DT
high/JJ
of/IN
$/$
560/CD
this/DT
spring/NN
./.
Moreover/RB
,/,
the/DT
relative/JJ
strength/NN
of/IN
the/DT
dollar/NN
and/CC
lower/JJR
world/NN
prices/NNS
may/MD
result/VB
in/IN
increased/VBN
sales/NNS
in/IN
the/DT
U.S./NNP
by/IN
foreign/JJ
producers/NNS
offering/VBG
lower/JJR
prices/NNS
./.
There/EX
are/VBP
some/DT
bright/JJ
spots/NNS
for/IN
the/DT
industry/NN
./.
The/DT
service/NN
center/NN
association/NN
reports/VBZ
that/IN
shipments/NNS
were/VBD
up/IN
in/IN
August/NNP
,/,
indicating/VBG
a/DT
resurgence/NN
in/IN
demand/NN
for/IN
carbon/NN
flat/JJ
rolled/VBN
and/CC
stainless/JJ
steel/NN
products/NNS
./.
John/NNP
Jacobson/NNP
,/,
an/DT
analyst/NN
with/IN
AUS/NNP
Consultants/NNPS
,/,
also/RB
said/VBD
he/PRP
believes/VBZ
steel/NN
production/NN
costs/NNS
are/VBP
coming/VBG
down/IN
because/IN
of/IN
increased/VBN
efficiencies/NNS
at/IN
major/JJ
mills/NNS
./.
I/PRP
was/VBD
profoundly/RB
moved/VBN
by/IN
the/DT
incongruity/NN
of/IN
modern/JJ
American/JJ
life/NN
illustrated/VBN
by/IN
your/PRP$
Sept./NNP
20/CD
page-one/JJ
article/NN
``/``
Country/NNP
Doctor/NNP
:/:
How/WRB
a/DT
Physician/NN
Solved/VBD
Riddle/NN
of/IN
Rare/JJ
Disease/NN
in/IN
Children/NNS
of/IN
Amish/NNP
./.
''/''
Here/RB
is/VBZ
a/DT
young/JJ
man/NN
who/WP
honestly/RB
understands/VBZ
what/WP
being/VBG
a/DT
physician/NN
means/VBZ
and/CC
what/WP
it/PRP
requires/VBZ
./.
It/PRP
requires/VBZ
delivering/VBG
quality/NN
medical/JJ
care/NN
to/TO
those/DT
in/IN
need/NN
./.
It/PRP
requires/VBZ
doing/VBG
the/DT
utmost/NN
within/IN
oneself/PRP
to/TO
alleviate/VB
the/DT
illness/NN
and/CC
suffering/NN
of/IN
others/NNS
./.
The/DT
physician/NN
providing/VBG
such/JJ
care/NN
derives/VBZ
his/PRP$
reward/NN
from/IN
being/VBG
fulfilled/VBN
as/IN
a/DT
provider/NN
,/,
and/CC
from/IN
realistic/JJ
charges/NNS
for/IN
his/PRP$
care/NN
./.
Though/NNP
Holmes/NNP
Morton/NNP
fulfills/VBZ
the/DT
``/``
requirements/NNS
''/''
for/IN
being/VBG
a/DT
true/JJ
physician/NN
,/,
our/PRP$
so-called/JJ
sophisticated/JJ
society/NN
and/CC
its/PRP$
medical/JJ
system/NN
fail/VBP
to/TO
appreciate/VB
the/DT
value/NN
of/IN
such/PDT
a/DT

dedicated/JJ
physician/NN
./.
Otherwise/RB
,/,
why/WRB
is/VBZ
there/EX
not/RB
a/DT
rush/NN
of/IN
funds/NNS
from/IN
medical/JJ
circles/NNS
or/CC
the/DT
related/VBN
medical-support/JJ
industry/NN
--/:
i.e./FW
pharmaceutical/JJ
companies/NNS
,/,
etc./FW
--/:
or/CC
,/,
most/RBS
significantly/RB
,/,
from/IN
all/DT
of/IN
us/PRP
to/TO
support/VB
this/DT
doctor/NN
and/CC
his/PRP$
patients/NNS
,/,
to/TO
support/VB
a/DT
clinic/NN
to/TO
further/VB
the/DT
work/NN
of/IN
resolving/VBG
human/JJ
suffering/NN
?/.
Ted/NNP
Ferrier/NNP
Jr/NNP
./.
Dallas/NNP
Having/VBG
grown/VBN
up/IN
among/IN
the/DT
Amish/NNP
in/IN
Iowa/NNP
,/,
I/PRP
think/VBP
I/PRP
can/MD
appreciate/VB
more/JJR
than/IN
most/JJS
the/DT
difficulty/NN
of/IN
Dr./NNP
Morton/NNP
's/POS
work/NN
./.
The/DT
average/JJ
person/NN
can/MD
hardly/RB
imagine/VB
the/DT
suspicion/NN
,/,
bred/VBN
by/IN
centuries/NNS
of/IN
isolation/NN
and/CC
persecution/NN
,/,
among/IN
the/DT
Amish/NNP
toward/IN
outsiders/NNS
and/CC
things/NNS
modern/JJ
./.
This/DT
,/,
in/IN
my/PRP$
experience/NN
,/,
is/VBZ
particularly/RB
true/JJ
of/IN
their/PRP$
attitude/NN
toward/IN
modern/JJ
medicine/NN
./.
Dr./NNP
Morton/NNP
's/POS
success/NN
is/VBZ
not/RB
only/RB
a/DT
measure/NN
of/IN
the/DT
outstanding/JJ
quality/NN
of/IN
his/PRP$
work/NN
,/,
but/CC
also/RB
of/IN
the/DT
desperation/NN
the/DT
Amish/NNP
must/MD
feel/VB
in/IN
the/DT
face/NN
of/IN
this/DT
horrendous/JJ
disease/NN
./.
Sadly/RB
,/,
the/DT
article/NN
also/RB
contains/VBZ
a/DT
profound/JJ
statement/NN
about/IN
the/DT
current/JJ
state/NN
of/IN
academe/NN
,/,
the/DT
professions/NNS
in/IN
particular/JJ
and/CC
American/JJ
society/NN
in/IN
general/NN
./.
Some/DT
experts/NNS
were/VBD
quoted/VBN
as/IN
speculating/VBG
on/IN
the/DT
detrimental/JJ
effects/NNS
of/IN
Dr./NNP
Morton/NNP
's/POS
work/NN
on/IN
his/PRP$
career/NN
./.
According/VBG
to/TO
these/DT
experts/NNS
,/,
he/PRP
will/MD
find/VB
it/PRP
difficult/JJ
to/TO
get/VB
grants/NNS
and/CC
will/MD
lose/VB
access/NN
to/TO
sophisticated/JJ
laboratories/NNS
./.
They/PRP
point/VBP
out/IN
that/IN
he/PRP
``/``
will/MD
be/VB
,/,
at/IN
best/RB
,/,
on/IN
the/DT
very/RB
outer/JJ
circle/NN
./.
''/''
As/IN
a/DT
marginal/JJ
academic/NN
myself/PRP
,/,
I/PRP
thought/VBD
we/PRP
were/VBD
at/IN
least/JJS
discreet/JJ
enough/RB
to/TO
keep/VB
our/PRP$
real/JJ
concerns/NNS
hidden/VBN
behind/IN
our/PRP$
academic/JJ
robes/NNS
and/CC
in/IN
our/PRP$
faculty/NN
cliques/NNS
./.
We/PRP
can/MD
only/RB
hope/VB
that/IN
more/JJR
people/NNS
will/MD
choose/VB
to/TO
be/VB
``/``
on/IN
the/DT
very/RB
outer/JJ
circle/NN
./.
''/''
James/NNP
E./NNP
Groff/NNP
Associate/NNP
Professor/NNP
University/NNP
of/IN
Texas/NNP
at/IN
San/NNP
Antonio/NNP
San/NNP
Antonio/NNP
How/WRB
very/RB
refreshing/JJ
to/TO
read/VB
about/IN
Dr./NNP
Morton/NNP
after/IN
all/PDT
the/DT
articles/NNS
about/IN
the/DT
Boeskys/NNP
,/,
Millkens/NNP
,/,
Icahns/NNP
,/,
Trumps/NNP
and/CC
such/JJ
like/IN
;/:
about/IN
S&L/NNP
officials/NNS
and/CC
self-seeking/JJ
officials/NNS
and/CC
legislators/NNS
,/,
federal/JJ
and/CC
state/NN
;/:
about/IN
corporate/JJ
executives/NNS
whose/WP$
sole/JJ
concern/NN
is/VBZ
the/DT
``/``
bottom/NN
line/NN
,/,
''/''
all/DT
of/IN
which/WDT
lead/VBP
to/TO
the/DT
conclusion/NN
that/IN
as/IN
a/DT
society/NN
we/PRP
have/VBP
a/DT
woeful/JJ
sense/NN
of/IN
values/NNS
and/CC
give/VBP
no/DT
thought/NN
to/TO
what/WP
``/``
life/NN
is/VBZ
all/DT
about/IN
./.
''/''
Here/RB
is/VBZ
an/DT
individual/NN
to/TO
be/VB
greatly/RB
admired/VBN
and/CC
respected/VBN
./.
Sandro/NNP
Mayer/NNP
Fishkill/NNP
,/,
N.Y/NNP
./.
Owens-Corning/NNP
Fiberglas/NNP
Corp./NNP
said/VBD
it/PRP
expects/VBZ
to/TO
report/VB
that/DT
third-quarter/NN
operating/VBG
profit/NN
fell/VBD
``/``
substantially/RB
''/''
from/IN
a/DT
year/NN
earlier/RBR
,/,
when/WRB
the/DT
maker/NN
of/IN
insulation/NN
,/,
roofing/NN
and/CC
plastic/NN
materials/NNS
had/VBD
profit/NN
before/IN
extraordinary/JJ
items/NNS
of/IN
$/$
1.36/CD
a/DT
share/NN
./.
In/IN
a/DT
prepared/VBN
statement/NN
,/,
the/DT
company/NN
said/VBD
the/DT
decline/NN
``/``
reflects/VBZ
reduced/VBN
activity/NN
in/IN
construction/NN
,/,
marine/NN
and/CC
transportation/NN
markets/NNS
./.
''/''
An/DT
Owens-Corning/NNP
spokesman/NN
said/VBD
the/DT
company/NN
still/RB
expects/VBZ
to/TO
post/VB
net/JJ
income/NN
for/IN
the/DT
just-ended/JJ
third/JJ
quarter/NN
but/CC
he/PRP
declined/VBD
to/TO
be/VB
more/RBR
specific/JJ
./.
He/PRP
also/RB
declined/VBD
to/TO
comment/VB
on/IN
expectations/NNS
for/IN
the/DT
fourth/JJ
quarter/NN
./.
Owens-Corning/NNP
closed/VBD
at/IN
$/$
30.75/CD
a/DT
share/NN
,/,
down/IN
$/$
2.875/CD
,/,
in/IN
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
composite/JJ
trading/NN
following/VBG
the/DT
news/NN
./.
In/IN
the/DT
1988/CD
third/JJ
quarter/NN
,/,
Owens-Corning/NNP
had/VBD
profit/NN
from/IN
continuing/VBG
operations/NNS
of/IN
$/$
57/CD
million/CD
./.
A/DT
charge/NN
of/IN
$/$
6/CD
million/CD
,/,
or/CC
15/CD
cents/NNS
a/DT
share/NN
,/,
related/VBN
to/TO
the/DT
purchase/NN
of/IN
company/NN
debt/NN
made/VBD
net/JJ
$/$
51/CD
million/CD
,/,
or/CC
$/$
1.21/CD
a/DT
share/NN
./.
Sales/NNS
in/IN
the/DT
1988/CD
third/JJ
quarter/NN
totaled/VBD
$/$
760/CD
million/CD
./.
The/DT
spokesman/NN
said/VBD
the/DT
problems/NNS
in/IN
the/DT
construction/NN
market/NN
relate/VBP
mainly/RB
to/TO
``/``
reduced/VBN
volume/NN
in/IN
insulation/NN
and/CC
roofing/NN
,/,
especially/RB
reroofing/NN
and/CC
commercial/JJ
roofing/NN
products/NNS
./.
''/''
He/PRP
said/VBD
roof/NN
repairs/NNS
were/VBD
relatively/RB
strong/JJ
in/IN
Texas/NNP
and/CC
should/MD
be/VB
strong/JJ
in/IN
the/DT
Southeast/NN
during/IN
the/DT
fourth/JJ
quarter/NN
as/IN
home/NN
and/CC
building/NN
owners/NNS
repair/VBP
property/NN
damaged/VBN
by/IN
Hurricane/NNP
Hugo/NNP
./.
``/``
But/CC
nationally/RB
,/,
based/VBN
on/IN
trends/NNS
so/RB
far/RB
this/DT
year/NN
,/,
we/PRP
expect/VBP
{/(
that/IN
segment/NN
weak/JJ
over/IN
all/DT
,/,
''/''
he/PRP
said/VBD
./.
The/DT
spokesman/NN
said/VBD
sales/NNS
of/IN
reinforced-fiberglass/JJ
material/NN
to/TO
the/DT
boat-building/JJ
industry/NN
also/RB
were/VBD
weak/JJ
,/,
largely/RB
because/IN
of/IN
softening/VBG
in/IN
the/DT
marine/NN
market/NN
./.
Weakness/NN
in/IN
the/DT
auto/NN
industry/NN
also/RB
is/VBZ
expected/VBN
to/TO
continue/VB
through/IN
the/DT
rest/NN
of/IN
the/DT
year/NN
./.
Car/NN
and/CC
truck/NN
production/NN
was/VBD
strong/JJ
earlier/RBR
this/DT
year/NN
,/,
but/CC
expectations/NNS
of/IN
slower/JJR
sales/NNS
in/IN
the/DT
fourth/JJ
quarter/NN
have/VBP
cut/VBN
manufacturers/NNS
'/POS
output/NN
forecasts/NNS
./.
However/RB
,/,
Owens-Corning/NNP
was/VBD
able/JJ
to/TO
offset/VB
that/DT
decline/NN
somewhat/RB
with/IN
new/JJ
business/NN
at/IN
General/NNP
Motors/NNPS
Corp./NNP
,/,
which/WDT
recently/RB
introduced/VBD
a/DT
new/JJ
,/,
plastic-body/JJ
van/NN
./.
Owens-Corning/NNP
expects/VBZ
to/TO
post/VB
third-quarter/NN
results/NNS
by/IN
the/DT
end/NN
of/IN
next/JJ
week/NN
,/,
the/DT
spokesman/NN
said/VBD
./.
In/IN
reference/NN
to/TO
your/PRP$
Sept./NNP
11/CD
article/NN
``/``
ROTC/NNP
Regains/VBZ
Respect/NN
on/IN
Campuses/NNS
as/IN
Graduates/NNS
Fare/VBP
Well/RB
in/IN
Workplace/NN
,/,
''/''
we/PRP
want/VBP
to/TO
clarify/VB
an/DT
erroneous/JJ
impression/NN
regarding/VBG
the/DT
Villanova/NNP
Naval/NNP
ROTC/NNP
Program/NNP
for/IN
1971-1974/CD
./.
Joseph/NNP
Hebert/NNP
III/NNP
was/VBD
incorrectly/RB
identified/VBN
./.
He/PRP
was/VBD
not/RB
an/DT
instructor/NN
at/IN
Villanova/NNP
but/CC
was/VBD
a/DT
recruiter/NN
who/WP
traveled/VBD
to/TO
many/JJ
universities/NNS
./.
The/DT
Naval/NNP
ROTC/NNP
program/NN
at/IN
Villanova/NNP
never/RB
held/VBD
meetings/NNS
at/IN
fraternity/NN
houses/NNS
as/IN
we/PRP
have/VBP
no/DT
fraternity/NN
houses/NNS
./.
Villanova/NNP
University/NNP
and/CC
the/DT
surrounding/VBG
community/NN
have/VBP
supported/VBN
the/DT
Navy/NNP
100/CD
%/NN
every/DT
year/NN
since/IN
World/NNP
War/NNP
II/NNP
and/CC
the/DT
university/NN
is/VBZ
recognized/VBN
as/IN
unequaled/JJ
in/IN
providing/VBG
the/DT
best/JJS
of/IN
support/NN
to/TO
the/DT
Navy/NNP
./.
All/DT
that/WDT
occurred/VBD
during/IN
the/DT
Vietnam/NNP
era/NN
was/VBD
an/DT
occasional/JJ
sign-carrying/JJ
student/NN
near/IN
the/DT
parade/NN
ground/NN
in/IN
peaceful/JJ
protest/NN
,/,
but/CC
no/DT
effort/NN
was/VBD
made/VBN
to/TO
disrupt/VB
the/DT
Naval/NNP
ROTC/NNP
activities/NNS
./.
Villanova/NNP
and/CC
the/DT
U.S./NNP
Navy/NNP
are/VBP
very/RB
proud/JJ
of/IN
their/PRP$
superb/JJ
relationship/NN
over/IN
the/DT
past/JJ
50/CD
years/NNS
./.
The/DT
Rev./NNP
L.C./NNP
Gallen/NNP
Vice/NNP
President/NNP
for/IN
Academic/NNP
Affairs/NNPS
Villanova/NNP
University/NNP
Villanova/NNP
,/,
Pa/NNP
./.
As/IN
India/NNP
gears/VBZ
up/IN
for/IN
general/JJ
elections/NNS
to/TO
be/VB
held/VBN
by/IN
January/NNP
,/,
television/NN
is/VBZ
emerging/VBG
as/IN
a/DT
powerful/JJ
political/JJ
tool/NN
--/:
and/CC
a/DT
highly/RB
controversial/JJ
one/CD
./.
Television/NN
is/VBZ
beamed/VBN
into/IN
74/CD
%/NN
of/IN
the/DT
country/NN
's/POS
villages/NNS
,/,
up/IN
from/IN
49/CD
%/NN
during/IN
the/DT
1984/CD
general-election/NN
campaign/NN
./.
The/DT
government/NN
hopes/VBZ
to/TO
get/VB
broadcasts/NNS
into/IN
all/DT
of/IN
India/NNP
's/POS
57,500/CD
villages/NNS
eventually/RB
./.
But/CC
the/DT
government/NN
is/VBZ
essentially/RB
the/DT
only/JJ
broadcaster/NN
./.
It/PRP
controls/VBZ
the/DT
sole/JJ
national/JJ
TV/NN
network/NN
,/,
Doordarshan/NNP
,/,
and/CC
the/DT
only/JJ
national/JJ
radio/NN
system/NN
,/,
All/DT
India/NNP
Radio/NNP
./.
TV/NN
news/NN
coverage/NN
has/VBZ
generally/RB
favored/VBN
the/DT
government/NN
./.
In/IN
recent/JJ
months/NNS
,/,
however/RB
,/,
critics/NNS
say/VBP
the/DT
coverage/NN
has/VBZ
been/VBN
so/RB
biased/VBN
toward/IN
Prime/NNP
Minister/NNP
Rajiv/NNP
Gandhi/NNP
and/CC
his/PRP$
ruling/NN
Congress/NNP
I/NN
Party/NNP
that/IN
what/WP
is/VBZ
labeled/VBN
news/NN
is/VBZ
merely/RB
propaganda/NN
./.
With/IN
the/DT
elections/NNS
approaching/VBG
,/,
critics/NNS
say/VBP
the/DT
manipulation/NN
of/IN
such/PDT
an/DT
influential/JJ
medium/NN
poses/VBZ
a/DT
threat/NN
to/TO
India/NNP
's/POS
democratic/JJ
traditions/NNS
./.
``/``
In/IN
a/DT
country/NN
with/IN
our/PRP$
measure/NN
of/IN
literacy/NN
,/,
television/NN
is/VBZ
becoming/VBG
a/DT
serious/JJ
impediment/NN
in/IN
the/DT
way/NN
of/IN
free/JJ
and/CC
fair/JJ
elections/NNS
,/,
''/''
says/VBZ
Lal/NNP
Krishna/NNP
Advani/NNP
,/,
an/DT
opposition-party/JJ
leader/NN
and/CC
a/DT
former/JJ
minister/NN
of/IN
information/NN
and/CC
broadcasting/NN
./.
``/``
It/PRP
tilts/VBZ
the/DT
balance/NN
totally/RB
in/IN
favor/NN
of/IN
the/DT
ruling/VBG
party/NN
./.
''/''
But/CC
Kamal/NNP
Kant/NNP
Tewary/NNP
,/,
minister/NN
for/IN
information/NN
and/CC
broadcasting/NN
,/,
says/VBZ
:/:
``/``
We/PRP
are/VBP
the/DT
elected/VBN
representatives/NNS
of/IN
the/DT
people/NNS
,/,
and/CC
we/PRP
will/MD
do/VB
whatever/WDT
we/PRP
think/VBP
is/VBZ
fit/JJ
and/CC
in/IN
the/DT
interests/NNS
of/IN
the/DT
people/NNS
./.
''/''
There/EX
is/VBZ
general/JJ
agreement/NN
on/IN
one/CD
point/NN
:/:
The/DT
elections/NNS
are/VBP
likely/JJ
to/TO
be/VB
the/DT
most/RBS
uncertain/JJ
since/IN
1967/CD
./.
Many/JJ
say/VBP
Mr./NNP
Gandhi/NNP
and/CC
Congress/NNP
I/NN
seesawing/VBG
popularity/NN
and/CC
an/DT
arms/NNS
scandal/NN
that/WDT
has/VBZ
tarnished/VBN
the/DT
government/NN
,/,
stand/VBP
a/DT
chance/NN
of/IN
losing/VBG
power/NN
./.
The/DT
arms/NNS
scandal/NN
involves/VBZ
a/DT
report/NN
by/IN
India/NNP
's/POS
comptroller/NN
and/CC
auditor/NN
general/NN
,/,
which/WDT
cited/VBD
lapses/NNS
in/IN
the/DT
government/NN
's/POS
evaluation/NN
and/CC
purchase/NN
of/IN
artillery/NN
guns/NNS
from/IN
a/DT
Swedish/JJ
arms/NNS
company/NN
./.
Television/NN
came/VBD
to/TO
India/NNP
in/IN
1965/CD
,/,
when/WRB
black-and-white/JJ
broadcasts/NNS
began/VBD
in/IN
New/NNP
Delhi/NNP
./.
Broadcasts/NNS
to/TO
other/JJ
cities/NNS
did/VBD
n't/RB
start/VB
until/IN
1972/CD
,/,
and/CC
color/NN
broadcasts/NNS
debuted/VBD
just/RB
seven/CD
years/NNS
ago/IN
./.
In/IN
1980/CD
,/,
the/DT
country/NN
had/VBD
1.6/CD
million/CD
TV/NN
sets/NNS
;/:
today/NN
there/EX
are/VBP
20/CD
million/CD
./.
That/DT
's/VBZ
a/DT
small/JJ
number/NN
for/IN
a/DT
nation/NN
of/IN
800/CD
million/CD
people/NNS
,/,
but/CC
a/DT
single/JJ
set/NN
might/MD
have/VB
much/JJ
of/IN
a/DT
village/NN
for/IN
its/PRP$
audience/NN
./.
A/DT
sizable/JJ
portion/NN
of/IN
illiterate/JJ
Indians/NNPS
now/RB
rely/VBP
on/IN
television/NN
for/IN
news/NN
they/PRP
used/VBD
to/TO
hear/VB
third/JJ
or/CC
fourth/JJ
hand/NN
,/,
if/IN
at/IN
all/DT
./.
Doordarshan/NNP
is/VBZ
controlled/VBN
by/IN
the/DT
Ministry/NNP
of/IN
Information/NNP
and/CC
Broadcasting/NNP
and/CC
often/RB
takes/VBZ
orders/NNS
directly/RB
from/IN
the/DT
prime/JJ
minister/NN
's/POS
office/NN
,/,
some/DT
Doordarshan/NNP
staff/NN
members/NNS
contend/VBP
./.
According/VBG
to/TO
critics/NNS
,/,
the/DT
shift/NN
in/IN
Doordarshan/NNP
's/POS
news/NN
coverage/NN
from/IN
generally/RB
favoring/VBG
the/DT
government/NN
to/TO
outright/JJ
bias/NN
began/VBD
in/IN
May/NNP
./.
From/IN
around/IN
that/DT
time/NN
,/,
the/DT
critics/NNS
say/VBP
,/,
items/NNS
on/IN
Mr./NNP
Gandhi/NNP
and/CC
Congress/NNP
I/NN
the/DT
nationwide/JJ
evening/NN
news/NN
and/CC
have/VBP
been/VBN
overwhelmingly/RB
positive/JJ
,/,
while/IN
the/DT
opposition/NN
has/VBZ
been/VBN
given/VBN
short/JJ
shrift/NN
or/CC
blatantly/RB
abused/VBN
./.
In/IN
May/NNP
,/,
a/DT
Doordarshan/NNP
news/NN
bulletin/NN
quoted/VBD
excerpts/NNS
from/IN
a/DT
newspaper/NN
article/NN
by/IN
an/DT
opposition/NN
leader/NN
./.
The/DT
article/NN
criticized/VBD
both/PDT
the/DT
government/NN
and/CC
the/DT
opposition/NN
,/,
but/CC
Doordarshan/NNP
aired/VBD
only/RB
the/DT
parts/NNS
criticizing/VBG
the/DT
opposition/NN
./.
This/DT
was/VBD
merely/RB
news/NN
judgment/NN
,/,
says/VBZ
Mr./NNP
Tewary/NNP
,/,
the/DT
information/NN
and/CC
broadcasting/NN
minister/NN
./.
In/IN
the/DT
same/JJ
month/NN
,/,
a/DT
group/NN
of/IN
politicians/NNS
circulated/VBD
a/DT
photo/NN
of/IN
a/DT
top/JJ
opposition/NN
leader/NN
,/,
Ajit/NNP
Singh/NNP
,/,
socializing/VBG
with/IN
an/DT
alleged/JJ
drug/NN
smuggler/NN
./.
Newspapers/NNS
carried/VBD
the/DT
photo/NN
on/IN
their/PRP$
front/JJ
pages/NNS
./.
Doordarshan/NNP
showed/VBD
it/PRP
on/IN
the/DT
nationwide/JJ
news/NN
broadcast/NN
./.
The/DT
next/JJ
day/NN
,/,
a/DT
different/JJ
group/NN
of/IN
politicians/NNS
produced/VBD
a/DT
photo/NN
of/IN
Mr./NNP
Gandhi/NNP
standing/VBG
next/JJ
to/TO
the/DT
same/JJ
alleged/JJ
drug/NN
smuggler/NN
./.
Newspapers/NNS
again/RB
gave/VBD
it/PRP
front-page/JJ
play/NN
./.
Doordarshan/NNP
ignored/VBD
it/PRP
./.
Mr./NNP
Tewary/NNP
says/VBZ
the/DT
prime/JJ
minister/NN
is/VBZ
photographed/VBN
with/IN
many/JJ
people/NNS
and/CC
that/IN
therefore/RB
the/DT
photograph/NN
was/VBD
n't/RB
news/NN
./.
But/CC
a/DT
senior/JJ
reporter/NN
at/IN
All/NNP
India/NNP
Radio/NNP
,/,
who/WP
declines/VBZ
to/TO
be/VB
identified/VBN
,/,
says/VBZ
:/:
``/``
We/PRP
get/VBP
orders/NNS
from/IN
a/DT
chain/NN
of/IN
people/NNS
./.
We/PRP
are/VBP
a/DT
government/NN
news/NN
agency/NN
and/CC
are/VBP
expected/VBN
to/TO
project/VB
the/DT
government/NN
./.
''/''
For/IN
all/PDT
the/DT
criticism/NN
of/IN
what/WP
is/VBZ
seen/VBN
as/IN
government/NN
propaganda/NN
,/,
many/JJ
media/NNS
experts/NNS
say/VBP
it/PRP
could/MD
be/VB
counterproductive/JJ
./.
Says/VBZ
Probhat/NNP
Chandra/NNP
Chatterji/NNP
,/,
one/CD
of/IN
the/DT
pioneers/NNS
of/IN
Indian/JJ
broadcasting/NN
and/CC
a/DT
former/JJ
director-general/NN
of/IN
All/NNP
India/NNP
Radio/NNP
and/CC
Doordarshan/NNP
:/:
``/``
It/PRP
is/VBZ
debatable/JJ
whether/IN
this/DT
propaganda/NN
will/MD
bring/VB
votes/NNS
to/TO
the/DT
government/NN
./.
By/IN
and/CC
large/JJ
,/,
people/NNS
think/VBP
that/IN
it/PRP
will/MD
turn/VB
the/DT
people/NNS
away/RB
./.
''/''
Troubled/JJ
British/JJ
defense/NN
contractor/NN
Ferranti/NNP
International/NNP
Signal/NNP
PLC/NNP
replaced/VBD
the/DT
head/NN
of/IN
its/PRP$
scandal-plagued/JJ
U.S./NNP
division/NN
./.
Ferranti/NNP
said/VBD
Joseph/NNP
Zilligen/NNP
,/,
49/CD
years/NNS
old/JJ
,/,
chairman/NN
of/IN
Ferranti/NNP
International/NNP
USA/NNP
,/,
is/VBZ
``/``
relinquishing/VBG
''/''
his/PRP$
post/NN
./.
Succeeding/VBG
him/PRP
as/IN
chairman/NN
of/IN
the/DT
large/JJ
,/,
Lancaster/NNP
,/,
Pa.-based/JJ
unit/NN
,/,
is/VBZ
a/DT
longtime/JJ
Ferranti/NNP
executive/NN
,/,
Albert/NNP
Dodd/NNP
./.
Mr./NNP
Dodd/NNP
,/,
a/DT
53-year-old/JJ
Briton/NN
,/,
is/VBZ
a/DT
Ferranti/NNP
board/NN
member/NN
and/CC
managing/VBG
director/NN
of/IN
Ferranti/NNP
's/POS
instrumentation/NN
division/NN
./.
The/DT
U.S./NNP
unit/NN
is/VBZ
at/IN
the/DT
center/NN
of/IN
what/WP
Ferranti/NNP
has/VBZ
called/VBN
a/DT
``/``
serious/JJ
fraud/NN
''/''
that/WDT
has/VBZ
rocked/VBN
the/DT
British/JJ
company/NN
for/IN
the/DT
past/JJ
month/NN
./.
Ferranti/NNP
acquired/VBD
the/DT
U.S./NNP
business/NN
last/JJ
year/NN
,/,
in/IN
a/DT
merger/NN
with/IN
the/DT
then/RB
International/NNP
Signal/NNP
&/CC
Control/NNP
Group/NNP
An/DT
International/NNP
Signal/NNP
unit/NN
,/,
according/VBG
to/TO
Ferranti/NNP
,/,
reported/VBD
on/IN
its/PRP$
books/NNS
#/#
215/CD
million/CD
$/$
332.5/CD
million/CD
weapons/NNS
contracts/NNS
that/WDT
did/VBD
n't/RB
exist/VB
./.
The/DT
falsified/VBN
figures/NNS
inflated/VBD
International/NNP
Signal/NNP
's/POS
reported/VBN
assets/NNS
,/,
and/CC
increased/VBD
the/DT
price/NN
Ferranti/NNP
paid/VBD
when/WRB
it/PRP
bought/VBD
the/DT
company/NN
,/,
according/VBG
to/TO
Ferranti/NNP
officials/NNS
./.
Mr./NNP
Zilligen/NNP
's/POS
departure/NN
is/VBZ
the/DT
latest/JJS
fallout/NN
from/IN
the/DT
scandal/NN
./.
Ferranti/NNP
has/VBZ
said/VBN
it/PRP
expects/VBZ
an/DT
accounting/NN
correction/NN
that/WDT
would/MD
eliminate/VB
nearly/RB
half/PDT
its/PRP$
reported/VBN
net/NN
worth/NN
,/,
and/CC
it/PRP
's/VBZ
seeking/VBG
a/DT
buyer/NN
to/TO
repair/VB
its/PRP$
finances/NNS
./.
British/NNP
Aerospace/NNP
PLC/NNP
and/CC
France/NNP
's/POS
Thomson-CSF/NNP
S.A./NNP
are/VBP
leading/VBG
contenders/NNS
for/IN
a/DT
joint/JJ
Ferranti/NNP
bid/NN
./.
Yesterday/NN
,/,
a/DT
London/NNP
brokerage/NN
firm/NN
,/,
Hoare/NNP
Govett/NNP
Ltd./NNP
,/,
confirmed/VBD
that/IN
it/PRP
purchased/VBD
on/IN
Wednesday/NNP
5.7/CD
million/CD
Ferranti/NNP
shares/NNS
at/IN
56/CD
pence/NN
87/CD
cents/NNS
behalf/NN
of/IN
British/NNP
Aerospace/NNP
./.
The/DT
purchase/NN
boosts/VBZ
the/DT
British/NNP
Aerospace-Thomson/NNP
stake/NN
to/TO
12.98/CD
million/CD
shares/NNS
,/,
or/CC
1.7/CD
%/NN
of/IN
the/DT
stock/NN
outstanding/JJ
./.
A/DT
Ferranti/NNP
spokesman/NN
declined/VBD
to/TO
comment/VB
on/IN
whether/IN
the/DT
management/NN
shuffle/NN
is/VBZ
related/VBN
to/TO
the/DT
financial/JJ
scandal/NN
,/,
but/CC
called/VBD
it/PRP
generally/RB
part/NN
of/IN
the/DT
``/``
integration/NN
''/''
of/IN
International/NNP
Signal/NNP
into/IN
Ferranti/NNP
since/IN
the/DT
1988/CD
merger/NN
./.
He/PRP
said/VBD
Mr./NNP
Zilligen/NNP
remains/VBZ
a/DT
Ferranti/NNP
director/NN
,/,
but/CC
will/MD
also/RB
be/VB
succeeded/VBN
by/IN
Mr./NNP
Dodd/NNP
as/IN
chief/NN
executive/NN
of/IN
Ferranti/NNP
Italia/NNP
./.
Mr./NNP
Zilligen/NNP
,/,
through/IN
a/DT
spokesman/NN
in/IN
Lancaster/NNP
,/,
declined/VBD
to/TO
comment/VB
./.
The/DT
executive/NN
was/VBD
a/DT
colleague/NN
since/IN
1980/CD
of/IN
International/NNP
Signal/NNP
founder/NN
James/NNP
Guerin/NNP
,/,
who/WP
left/VBD
International/NNP
Signal/NNP
and/CC
Ferranti/NNP
last/JJ
spring/NN
./.
Roy/NNP
S./NNP
MacDowell/NNP
Jr./NNP
,/,
founder/NN
of/IN
MacDowell/NNP
Co./NNP
,/,
a/DT
construction/NN
and/CC
site-development/NN
concern/NN
,/,
was/VBD
named/VBN
a/DT
director/NN
of/IN
this/DT
bank/NN
holding/VBG
company/NN
,/,
expanding/VBG
the/DT
board/NN
to/TO
seven/CD
members/NNS
./.
The/DT
dollar/NN
drifted/VBD
lower/RBR
in/IN
indecisive/JJ
trading/NN
,/,
its/PRP$
strength/NN
sapped/VBN
by/IN
concern/NN
that/IN
the/DT
Federal/NNP
Reserve/NNP
is/VBZ
gently/RB
easing/VBG
monetary/JJ
policy/NN
./.
Despite/IN
reserve-draining/JJ
operations/NNS
by/IN
the/DT
Fed/NNP
yesterday/NN
and/CC
on/IN
the/DT
three/CD
preceding/VBG
business/NN
days/NNS
,/,
some/DT
analysts/NNS
say/VBP
the/DT
central/JJ
bank/NN
is/VBZ
subtly/RB
relaxing/VBG
credit/NN
./.
They/PRP
say/VBP
the/DT
Fed/NNP
's/POS
draining/NN
operations/NNS
have/VBP
been/VBN
necessary/JJ
to/TO
address/VB
a/DT
seasonal/JJ
surfeit/NN
of/IN
reserves/NNS
,/,
but/CC
note/VBP
that/IN
the/DT
actions/NNS
have/VBP
n't/RB
been/VBN
tough/JJ
enough/RB
to/TO
prevent/VB
the/DT
federal/JJ
funds/NNS
rate/NN
from/IN
easing/VBG
to/TO
about/IN
8/CD
3\/4/CD
%/NN
from/IN
its/PRP$
recent/JJ
level/NN
of/IN
9/CD
%/NN
./.
The/DT
federal/JJ
funds/NNS
rate/NN
is/VBZ
the/DT
overnight/JJ
rate/NN
banks/NNS
charge/VBP
each/DT
other/JJ
./.
``/``
They/PRP
're/VBP
draining/VBG
in/IN
a/DT
consistently/RB
less/RBR
aggressive/JJ
manner/NN
and/CC
at/IN
a/DT
lower/JJR
level/NN
,/,
''/''
said/VBD
James/NNP
T./NNP
McGroarty/NNP
,/,
a/DT
senior/JJ
vice/NN
president/NN
at/IN
Greenwich/NNP
Capital/NNP
Markets/NNPS
./.
But/CC
others/NNS
analysts/NNS
say/VBP
opinion/NN
differs/VBZ
markedly/RB
on/IN
whether/IN
the/DT
Fed/NNP
is/VBZ
softening/VBG
its/PRP$
credit/NN
stance/NN
,/,
noting/VBG
that/IN
the/DT
market/NN
's/POS
muted/VBN
reaction/NN
reflects/VBZ
this/DT
division/NN
./.
``/``
We/PRP
just/RB
do/VBP
n't/RB
know/VB
enough/RB
yet/RB
to/TO
definitively/RB
say/VB
that/IN
the/DT
Fed/NNP
has/VBZ
eased/VBN
.../:
the/DT
fed/NN
funds/NNS
rate/NN
still/RB
is/VBZ
in/IN
a/DT
band/NN
around/IN
9/CD
%/NN
,/,
''/''
said/VBD
one/CD
economist/NN
./.
Speculation/NN
that/IN
the/DT
Fed/NNP
would/MD
sharply/RB
ease/VB
its/PRP$
credit/NN
reins/NNS
was/VBD
damped/VBN
earlier/RBR
this/DT
week/NN
when/WRB
Chairman/NNP
Alan/NNP
Greenspan/NNP
said/VBD
central/JJ
banks/NNS
should/MD
n't/RB
focus/VB
too/RB
much/RB
on/IN
intermediate/JJ
goals/NNS
for/IN
exchange/NN
rates/NNS
and/CC
interest/NN
rates/NNS
./.
In/IN
late/JJ
New/NNP
York/NNP
trading/NN
Thursday/NNP
,/,
the/DT
dollar/NN
was/VBD
quoted/VBN
at/IN
1.9083/CD
marks/NNS
,/,
down/IN
from/IN
1.9166/CD
marks/NNS
late/JJ
Wednesday/NNP
,/,
and/CC
at/IN
144.17/CD
yen/NN
,/,
down/IN
from/IN
144.57/CD
yen/NN
late/JJ
Wednesday/NNP
./.
Sterling/NN
was/VBD
quoted/VBN
at/IN
$/$
1.5523/CD
,/,
up/IN
from/IN
$/$
1.5463/CD
./.
In/IN
Tokyo/NNP
Friday/NNP
,/,
the/DT
U.S./NNP
currency/NN
opened/VBD
for/IN
trading/NN
at/IN
143.60/CD
yen/NN
,/,
down/IN
from/IN
Thursday/NNP
's/POS
Tokyo/NNP
close/NN
of/IN
144.60/CD
yen/NN
./.
Many/JJ
foreign/JJ
exchange/NN
traders/NNS
remain/VBP
skeptical/JJ
that/IN
a/DT
credit-softening/NN
is/VBZ
in/IN
the/DT
offing/NN
./.
They/PRP
plan/VBP
to/TO
look/VB
for/IN
clues/NNS
in/IN
two/CD
economic/JJ
indicators/NNS
due/JJ
out/IN
today/NN
,/,
one/CD
on/IN
the/DT
producer-price/JJ
index/NN
and/CC
the/DT
other/JJ
on/IN
retail/JJ
sales/NNS
,/,
both/DT
for/IN
September/NNP
./.
``/``
The/DT
market/NN
believes/VBZ
PPI/NNP
will/MD
confirm/VB
Greenspan/NNP
's/POS
concern/NN
about/IN
inflation/NN
,/,
''/''
said/VBD
Francoise/NNP
Soares-Kemp/NNP
,/,
a/DT
vice/NN
president/NN
with/IN
Credit/NNP
Suisse/NNP
in/IN
New/NNP
York/NNP
./.
She/PRP
said/VBD
the/DT
market/NN
has/VBZ
already/RB
reacted/VBN
to/TO
``/``
that/IN
particular/JJ
prompting/NN
''/''
and/CC
is/VBZ
unlikely/JJ
to/TO
bid/VB
the/DT
dollar/NN
significantly/RB
higher/JJR
./.
Higher/JJR
energy/NN
and/CC
auto/NN
prices/NNS
are/VBP
expected/VBN
to/TO
have/VB
pushed/VBN
producer/NN
prices/NNS
up/IN
0.3/CD
%/NN
in/IN
September/NNP
after/IN
declining/VBG
in/IN
August/NNP
and/CC
July/NNP
./.
Retail/JJ
sales/NNS
are/VBP
expected/VBN
to/TO
have/VB
remained/VBN
flat/JJ
in/IN
September/NNP
,/,
according/VBG
to/TO
economists/NNS
,/,
following/VBG
gains/NNS
of/IN
0.7/CD
%/NN
in/IN
August/NNP
and/CC
0.5/CD
%/NN
in/IN
July/NNP
./.
A/DT
long-awaited/JJ
speech/NN
by/IN
British/NNP
Chancellor/NNP
of/IN
the/DT
Exchequer/NNP
Nigel/NNP
Lawson/NNP
failed/VBD
to/TO
bolster/VB
the/DT
flagging/JJ
pound/NN
and/CC
left/VBD
many/JJ
market/NN
participants/NNS
with/IN
a/DT
decidedly/RB
bearish/JJ
view/NN
of/IN
sterling/NN
./.
Vowing/VBG
to/TO
continue/VB
his/PRP$
government/NN
's/POS
strategy/NN
of/IN
combating/VBG
inflation/NN
with/IN
high/JJ
interest/NN
rates/NNS
,/,
Mr./NNP
Lawson/NNP
told/VBD
the/DT
Conservative/NNP
Party/NNP
conference/NN
that/IN
the/DT
battle/NN
to/TO
rein/VB
in/IN
inflation/NN
required/VBD
a/DT
strong/JJ
currency/NN
./.
The/DT
Tories/NNP
are/VBP
``/``
not/RB
the/DT
party/NN
of/IN
devaluation/NN
,/,
''/''
he/PRP
said/VBD
./.
But/CC
Mr./NNP
Lawson/NNP
failed/VBD
to/TO
outline/VB
specific/JJ
policy/NN
changes/NNS
or/CC
say/VB
how/WRB
the/DT
British/JJ
government/NN
planned/VBD
to/TO
support/VB
the/DT
beleaguered/VBN
pound/NN
./.
He/PRP
also/RB
avoided/VBD
any/DT
mention/NN
of/IN
when/WRB
London/NNP
would/MD
bring/VB
sterling/NN
into/IN
the/DT
exchange/NN
rate/NN
mechanism/NN
of/IN
the/DT
European/NNP
Monetary/NNP
System/NNP
,/,
and/CC
warned/VBD
there/EX
are/VBP
``/``
no/RB
easy/JJ
answers/NNS
''/''
to/TO
Britain/NNP
's/POS
economic/JJ
problems/NNS
./.
Some/DT
market/NN
analysts/NNS
see/VBP
early/JJ
entry/NN
into/IN
the/DT
EMS/NNP
exchange/NN
rate/NN
mechanism/NN
as/IN
one/NN
of/IN
the/DT
few/JJ
alternatives/NNS
left/VBN
for/IN
stabilizing/VBG
the/DT
pound/NN
./.
But/CC
entry/NN
has/VBZ
been/VBN
opposed/VBN
by/IN
Prime/NNP
Minister/NNP
Thatcher/NNP
,/,
who/WP
insists/VBZ
Britain/NNP
should/MD
join/VB
from/IN
a/DT
position/NN
of/IN
strength/NN
./.
Wednesday/NNP
's/POS
discount/NN
rate/NN
increase/NN
in/IN
Japan/NNP
continued/VBD
to/TO
dominate/VB
trading/NN
in/IN
Tokyo/NNP
,/,
with/IN
dealers/NNS
trying/VBG
to/TO
guess/VB
what/WP
the/DT
Bank/NNP
of/IN
Japan/NNP
and/CC
the/DT
Fed/NNP
will/MD
do/VB
following/VBG
the/DT
failure/NN
of/IN
the/DT
rate/NN
boost/NN
to/TO
depress/VB
the/DT
dollar/NN
./.
The/DT
Bank/NNP
of/IN
Japan/NNP
entered/VBD
the/DT
market/NN
several/JJ
times/NNS
in/IN
the/DT
morning/NN
to/TO
sell/VB
dollars/NNS
for/IN
yen/NN
,/,
traders/NNS
said/VBD
./.
European/JJ
dealings/NNS
were/VBD
dominated/VBN
by/IN
cross/NN
activity/NN
,/,
highlighted/VBN
by/IN
sterling/NN
./.
On/IN
the/DT
Commodity/NNP
Exchange/NNP
in/IN
New/NNP
York/NNP
,/,
gold/NN
for/IN
current/JJ
delivery/NN
settled/VBN
at/IN
$/$
363.40/CD
an/DT
ounce/NN
,/,
up/IN
$/$
1.40/CD
./.
Estimated/VBN
volume/NN
was/VBD
a/DT
light/JJ
2.2/CD
million/CD
ounces/NNS
./.
In/IN
early/RB
trading/NN
in/IN
Hong/NNP
Kong/NNP
Friday/NNP
,/,
gold/NN
was/VBD
quoted/VBN
at/IN
$/$
363.35/CD
an/DT
ounce/NN
./.
COASTAL/NNP
Corp./NNP
said/VBD
it/PRP
completed/VBD
the/DT
public/JJ
offering/NN
of/IN
9.2/CD
million/CD
common/JJ
shares/NNS
and/CC
$/$
200/CD
million/CD
of/IN
15-year/JJ
senior/JJ
debentures/NNS
./.
The/DT
diversified/JJ
Houston/NNP
energy/NN
concern/NN
said/VBD
combined/VBN
proceeds/NNS
of/IN
about/IN
$/$
580.6/CD
million/CD
will/MD
be/VB
used/VBN
to/TO
retire/VB
and/CC
refinance/VB
outstanding/JJ
debt/NN
./.
Underwriters/NNS
for/IN
the/DT
offerings/NNS
included/VBD
Drexel/NNP
Burnham/NNP
Lambert/NNP
Inc./NNP
and/CC
Shearson/NNP
Lehman/NNP
Hutton/NNP
Inc/NNP
./.
Gordon/NNP
A./NNP
Paris/NNP
,/,
36/CD
years/NNS
old/JJ
,/,
was/VBD
named/VBN
managing/VBG
director/NN
in/IN
charge/NN
of/IN
a/DT
new/JJ
division/NN
,/,
the/DT
corporate/JJ
restructuring/VBG
group/NN
,/,
at/IN
this/DT
investment/NN
banking/NN
and/CC
brokerage/NN
firm/NN
./.
In/IN
April/NNP
,/,
Mr./NNP
Paris/NNP
joined/VBD
Kidder/NNP
from/IN
General/NNP
Electric/NNP
Capital/NNP
Corp./NNP
,/,
where/WRB
he/PRP
was/VBD
a/DT
vice/NN
president/NN
./.
Kidder/NNP
is/VBZ
about/IN
80%-owned/JJ
by/IN
General/NNP
Electric/NNP
Co./NNP
,/,
Fairfield/NNP
,/,
Conn./NNP
,/,
which/WDT
also/RB
owns/VBZ
GE/NNP
Capital/NNP
./.
Tokyo/NNP
stocks/NNS
fell/VBD
sharply/RB
as/IN
the/DT
dollar/NN
remained/VBD
strong/RB
despite/IN
Wednesday/NNP
's/POS
half-point/JJ
discount/NN
rate/NN
increase/NN
by/IN
the/DT
Bank/NNP
of/IN
Japan/NNP
./.
London/NNP
shares/NNS
recovered/VBD
some/DT
lost/VBN
ground/NN
,/,
largely/RB
on/IN
technical/JJ
factors/NNS
as/IN
Chancellor/NNP
Nigel/NNP
Lawson/NNP
's/POS
speech/NN
to/TO
the/DT
Conservative/NNP
Party/NNP
conference/NN
was/VBD
viewed/VBN
as/RB
basically/RB
neutral/JJ
for/IN
the/DT
market/NN
./.
Tokyo/NNP
's/POS
Nikkei/NNP
Index/NNP
of/IN
225/CD
issues/NNS
,/,
which/WDT
fell/VBD
136.28/CD
points/NNS
Wednesday/NNP
,/,
closed/VBD
at/IN
34795.05/CD
,/,
down/IN
445.02/CD
./.
The/DT
decline/NN
of/IN
nearly/RB
1.3/CD
%/NN
left/VBD
the/DT
index/NN
below/IN
35000/CD
for/IN
the/DT
first/JJ
time/NN
since/IN
Sept./NNP
25/CD
./.
In/IN
the/DT
first/JJ
hour/NN
of/IN
trading/NN
in/IN
Tokyo/NNP
Friday/NNP
,/,
the/DT
Nikkei/NNP
Index/NNP
rose/VBD
145.96/CD
points/NNS
to/TO
34941.01/CD
./.
Thursday/NNP
's/POS
volume/NN
on/IN
the/DT
first/JJ
section/NN
was/VBD
estimated/VBN
at/IN
650/CD
million/CD
shares/NNS
,/,
compared/VBN
with/IN
751/CD
million/CD
Wednesday/NNP
./.
Declining/VBG
issues/NNS
outpaced/VBP
advancers/NNS
857-161/CD
,/,
with/IN
110/CD
unchanged/JJ
./.
The/DT
Tokyo/NNP
Stock/NNP
Price/NNP
Index/NNP
of/IN
all/DT
issues/NNS
in/IN
the/DT
first/JJ
section/NN
,/,
which/WDT
lost/VBD
13.07/CD
Wednesday/NNP
,/,
was/VBD
down/IN
36.89/CD
,/,
or/CC
1.4/CD
%/NN
,/,
to/TO
2623.60/CD
./.
The/DT
market/NN
opened/VBD
at/IN
what/WP
proved/VBN
to/TO
be/VB
its/PRP$
high/RB
and/CC
continued/VBD
to/TO
slip/VB
toward/IN
the/DT
end/NN
of/IN
the/DT
day/NN
./.
Traders/NNS
said/VBD
the/DT
reason/NN
its/PRP$
drop/NN
was/VBD
larger/JJR
than/IN
Wednesday/NNP
's/POS
moderate/JJ
loss/NN
was/VBD
that/IN
investors/NNS
began/VBD
selling/VBG
their/PRP$
holdings/NNS
when/WRB
they/PRP
saw/VBD
that/IN
Wednesday/NNP
's/POS
rise/NN
to/TO
3.75/CD
%/NN
in/IN
the/DT
discount/NN
rate/NN
--/:
the/DT
central/JJ
bank/NN
's/POS
base/NN
rate/NN
on/IN
loans/NNS
to/TO
commercial/JJ
banks/NNS
--/:
failed/VBD
to/TO
curb/VB
the/DT
dollar/NN
's/POS
rise/NN
against/IN
the/DT
yen/NN
./.
A/DT
stronger/JJR
dollar/NN
concerns/VBZ
Japanese/JJ
stock/NN
investors/NNS
because/IN
it/PRP
contributes/VBZ
to/TO
Japanese/JJ
inflation/NN
,/,
particularly/RB
by/IN
raising/VBG
oil/NN
and/CC
other/JJ
energy/NN
and/CC
natural/JJ
resource/NN
prices/NNS
,/,
which/WDT
are/VBP
denominated/VBN
in/IN
dollars/NNS
./.
In/IN
addition/NN
,/,
higher/JJR
prices/NNS
for/IN
imports/NNS
allow/VBP
domestic/JJ
manufacturers/NNS
to/TO
increase/VB
their/PRP$
own/JJ
prices/NNS
./.
Moreover/RB
,/,
the/DT
current/JJ
high/JJ
level/NN
of/IN
the/DT
U.S./NNP
stock/NN
market/NN
,/,
and/CC
the/DT
possibility/NN
of/IN
U.S./NNP
interest/NN
rates/NNS
being/VBG
cut/NN
or/CC
Japanese/JJ
rates/NNS
being/VBG
raised/VBN
again/RB
to/TO
keep/VB
the/DT
dollar/NN
down/IN
,/,
might/MD
draw/VB
funds/NNS
currently/RB
invested/VBN
in/IN
Japanese/JJ
equities/NNS
into/IN
the/DT
U.S./NNP
market/NN
,/,
some/DT
investors/NNS
fear/VBP
./.
Masami/NNP
Okuma/NNP
,/,
senior/JJ
trader/NN
at/IN
UBS/NNP
Phillips/NNP
&/CC
Drew/NNP
International/NNP
,/,
said/VBD
expectations/NNS
of/IN
another/DT
increase/NN
in/IN
the/DT
discount/NN
rate/NN
already/RB
are/VBP
causing/VBG
some/DT
investors/NNS
not/RB
only/RB
to/TO
stop/VB
buying/VBG
but/CC
also/RB
to/TO
dump/VB
some/DT
of/IN
their/PRP$
recently/RB
acquired/VBN
shares/NNS
./.
Yoshiaki/NNP
Mitsuoka/NNP
,/,
manager/NN
of/IN
the/DT
investment/NN
information/NN
department/NN
at/IN
Daiwa/NNP
Investment/NNP
Trust/NNP
&/CC
Management/NNP
Co./NNP
,/,
said/VBD
the/DT
market/NN
had/VBD
been/VBN
sustained/VBN
recently/RB
by/IN
smaller/JJR
issues/NNS
with/IN
relatively/RB
low/JJ
price-earnings/JJ
ratios/NNS
./.
Prices/NNS
of/IN
such/JJ
shares/NNS
,/,
he/PRP
said/VBD
,/,
now/RB
have/VBP
risen/VBN
an/DT
average/NN
of/IN
57/CD
%/NN
in/IN
the/DT
past/JJ
six/CD
months/NNS
,/,
making/VBG
them/PRP
less/RBR
attractive/JJ
for/IN
fresh/JJ
buying/NN
./.
Yukio/NNP
Itagaki/NNP
,/,
director/NN
of/IN
the/DT
fund/NN
management/NN
department/NN
at/IN
Kokusai/NNP
Investment/NNP
Trust/NNP
Management/NNP
Co./NNP
,/,
said/VBD
the/DT
discount/NN
rate/NN
increase/NN
did/VBD
n't/RB
have/VB
much/JJ
effect/NN
on/IN
the/DT
actual/JJ
market/NN
environment/NN
,/,
as/IN
short-term/JJ
interest/NN
rates/NNS
already/RB
had/VBD
been/VBN
above/IN
5/CD
%/NN
./.
And/CC
as/IN
the/DT
rate/NN
on/IN
newly/RB
issued/VBN
three-month/JJ
certificates/NNS
of/IN
deposit/NN
went/VBD
up/IN
to/TO
6.2/CD
%/NN
Wednesday/NNP
,/,
institutions/NNS
and/CC
corporations/NNS
had/VBD
little/JJ
incentive/NN
to/TO
invest/VB
new/JJ
funds/NNS
in/IN
stocks/NNS
./.
The/DT
higher/JJR
discount/NN
rate/NN
discouraged/VBD
institutions/NNS
from/IN
holding/VBG
steel/NN
and/CC
construction/NN
shares/NNS
,/,
traders/NNS
said/VBD
./.
Nippon/NNP
Steel/NNP
fell/VBD
10/CD
to/TO
698/CD
yen/NN
$/$
4.83/CD
a/DT
share/NN
,/,
Sumitomo/NNP
Metal/NNP
lost/VBD
19/CD
to/TO
677/CD
,/,
and/CC
Kobe/NNP
Steel/NNP
was/VBD
down/IN
9/CD
at/IN
690/CD
./.
Kajima/NNP
was/VBD
down/IN
100/CD
at/IN
1,900/CD
,/,
while/IN
Ohbayashi/NNP
lost/VBD
60/CD
to/TO
1,500/CD
./.
Shipbuilding/NN
issues/NNS
also/RB
were/VBD
sold/VBN
off/IN
./.
Kawasaki/NNP
Heavy/NNP
Industries/NNPS
fell/VBD
37/CD
to/TO
903/CD
,/,
and/CC
Mitsubishi/NNP
Heavy/NNP
Industries/NNPS
was/VBD
down/IN
30/CD
at/IN
1,010/CD
./.
Among/IN
housing/NN
issues/NNS
,/,
Misawa/NNP
Homes/NNP
lost/VBD
140/CD
to/TO
2,830/CD
,/,
Sekisui/NNP
House/NNP
declined/VBD
70/CD
to/TO
2,400/CD
,/,
and/CC
Daiwa/NNP
House/NNP
lost/VBD
100/CD
to/TO
2,470/CD
./.
Retail/JJ
issues/NNS
,/,
which/WDT
advanced/VBD
in/IN
September/NNP
on/IN
speculation/NN
about/IN
mergers/NNS
and/CC
acquisitions/NNS
in/IN
the/DT
sector/NN
,/,
were/VBD
sold/VBN
on/IN
profit-taking/NN
,/,
traders/NNS
said/VBD
./.
Seiyu/NNP
was/VBD
down/IN
240/CD
at/IN
2,710/CD
,/,
Daiei/NNP
fell/VBD
70/CD
to/TO
2,980/CD
,/,
and/CC
Isetan/NNP
lost/VBD
170/CD
to/TO
4,720/CD
./.
Some/DT
of/IN
the/DT
blue-chip/JJ
issues/NNS
that/WDT
had/VBD
gained/VBN
in/IN
the/DT
previous/JJ
couple/NN
of/IN
days/NNS
were/VBD
lower/JJR
as/IN
investors/NNS
retreated/VBD
quickly/RB
./.
Hitachi/NNP
lost/VBD
10/CD
to/TO
1,510/CD
,/,
Toshiba/NNP
was/VBD
down/IN
40/CD
at/IN
1,130/CD
,/,
and/CC
Toyota/NNP
Motor/NNP
lost/VBD
30/CD
to/TO
2,820/CD
./.
Among/IN
the/DT
few/JJ
winners/NNS
was/VBD
Sharp/NNP
,/,
which/WDT
attracted/VBD
investors/NNS
because/IN
of/IN
growing/VBG
demand/NN
for/IN
its/PRP$
liquid/JJ
crystal/NN
projectors/NNS
,/,
traders/NNS
said/VBD
./.
Sharp/NNP
gained/VBD
20/CD
to/TO
1,550/CD
./.
Other/JJ
gainers/NNS
included/VBD
Nippon/NNP
Shokubai/NNP
,/,
which/WDT
rose/VBD
70/CD
to/TO
2,270/CD
,/,
Nikon/NNP
,/,
up/IN
30/CD
to/TO
1,620/CD
,/,
and/CC
Aiwa/NNP
,/,
which/WDT
gained/VBD
120/CD
to/TO
2,000/CD
./.
In/IN
London/NNP
,/,
the/DT
Financial/NNP
Times-Stock/NNP
Exchange/NNP
100-share/JJ
index/NN
finished/VBD
19/CD
points/NNS
higher/JJR
at/IN
2237.8/CD
./.
The/DT
Financial/NNP
Times/NNP
30-share/JJ
index/NN
rose/VBD
20.4/CD
to/TO
1817.7/CD
./.
Volume/NN
was/VBD
437.4/CD
million/CD
shares/NNS
,/,
down/IN
from/IN
503.2/CD
million/CD
Wednesday/NNP
./.
Chancellor/NNP
Lawson/NNP
,/,
who/WP
has/VBZ
been/VBN
under/IN
political/JJ
fire/NN
for/IN
his/PRP$
decision/NN
a/DT
week/NN
ago/IN
to/TO
force/VB
U.K./NNP
banks/NNS
'/POS
base/NN
lending/NN
rates/NNS
up/IN
to/TO
15/CD
%/NN
,/,
an/DT
eight-year/JJ
high/JJ
,/,
addressed/VBD
the/DT
governing/VBG
Conservatives/NNS
'/POS
annual/JJ
conference/NN
on/IN
current/JJ
economic/JJ
issues/NNS
,/,
and/CC
dealers/NNS
said/VBD
the/DT
speech/NN
was/VBD
exactly/RB
what/WP
the/DT
market/NN
had/VBD
expected/VBN
./.
``/``
It/PRP
was/VBD
a/DT
good/JJ
party/NN
political/JJ
conference/NN
speech/NN
,/,
''/''
a/DT
dealer/NN
with/IN
a/DT
large/JJ
U.K./NNP
market-making/NN
operation/NN
said/VBD
./.
``/``
He/PRP
did/VBD
n't/RB
calm/VB
any/DT
fears/NNS
or/CC
anxieties/NNS
,/,
but/CC
at/IN
least/JJS
he/PRP
did/VBD
n't/RB
create/VB
any/DT
new/JJ
ones/NNS
./.
''/''
Dealers/NNS
attributed/VBD
the/DT
day/NN
's/POS
advances/NNS
largely/RB
to/TO
a/DT
technical/JJ
rebound/NN
from/IN
the/DT
sharp/JJ
declines/NNS
that/WDT
followed/VBD
last/JJ
week/NN
's/POS
base-rate/JJ
increase/NN
./.
They/PRP
also/RB
cited/VBD
markdowns/NNS
by/IN
market-makers/NNS
seeking/VBG
to/TO
generate/VB
some/DT
business/NN
and/CC
a/DT
general/JJ
absence/NN
of/IN
active/JJ
selling/NN
./.
There/EX
was/VBD
also/RB
some/DT
speculative/JJ
energy/NN
that/WDT
helped/VBD
to/TO
support/VB
the/DT
FT-SE/NNP
100/CD
later/RB
in/IN
the/DT
session/NN
,/,
when/WRB
Wall/NNP
Street/NNP
showed/VBD
signs/NNS
of/IN
weakness/NN
early/RB
in/IN
its/PRP$
trading/NN
day/NN
./.
That/DT
energy/NN
came/VBD
in/IN
part/NN
from/IN
renewed/VBN
rumors/NNS
that/IN
U.S./NNP
takeover/NN
specialists/NNS
Kohlberg/NNP
Kravis/NNP
Roberts/NNP
are/VBP
preparing/VBG
to/TO
make/VB
a/DT
takeover/NN
bid/NN
for/IN
industrial/JJ
concern/NN
BTR/NNP
rather/RB
than/IN
simply/RB
take/VB
a/DT
15/CD
%/NN
stake/NN
in/IN
it/PRP
./.
Dealers/NNS
also/RB
pointed/VBD
to/TO
active/JJ
options/NNS
dealing/VBG
in/IN
the/DT
stock/NN
recently/RB
and/CC
said/VBD
some/DT
of/IN
the/DT
options/NNS
had/VBD
been/VBN
exercised/VBN
./.
BTR/NNP
ended/VBD
7/CD
higher/JJR
at/IN
437/CD
pence/NN
$/$
6.76/CD
a/DT
share/NN
./.
Ferranti/NNP
International/NNP
Signal/NNP
rose/VBD
1/CD
1\/2/CD
to/TO
58/CD
on/IN
8.5/CD
million/CD
shares/NNS
./.
British/NNP
Aerospace/NNP
said/VBD
earlier/RBR
in/IN
the/DT
week/NN
that/IN
it/PRP
was/VBD
considering/VBG
making/VBG
a/DT
joint/JJ
bid/NN
with/IN
France/NNP
's/POS
Thomson-CSF/NNP
for/IN
Ferranti/NNP
./.
ASDA/NNP
Group/NNP
,/,
a/DT
U.K./NNP
food/NN
retailer/NN
,/,
closed/VBD
4/CD
higher/JJR
at/IN
163/CD
after/IN
holders/NNS
approved/VBD
the/DT
company/NN
's/POS
acquisition/NN
of/IN
61/CD
stores/NNS
from/IN
Isosceles/NNP
./.
ASDA/NNP
was/VBD
relatively/RB
active/JJ
at/IN
6.3/CD
million/CD
shares/NNS
./.
Other/JJ
companies/NNS
in/IN
the/DT
food/NN
sector/NN
also/RB
firmed/VBD
on/IN
active/JJ
volume/NN
,/,
with/IN
Argyll/NNP
Group/NNP
gaining/VBG
8/CD
to/TO
223/CD
,/,
Tesco/NNP
up/IN
1\/2/CD
to/TO
194/CD
1\/2/CD
and/CC
J./NNP
Sainsbury/NNP
advancing/VBG
3/CD
to/TO
255/CD
./.
Blue-chip/JJ
issues/NNS
attracted/VBD
institutions/NNS
looking/VBG
for/IN
defensive/JJ
positions/NNS
amid/IN
the/DT
current/JJ
doubts/NNS
about/IN
the/DT
future/NN
of/IN
the/DT
U.K./NNP
economy/NN
,/,
dealers/NNS
said/VBD
./.
British/NNP
Steel/NNP
edged/VBD
2/CD
higher/JJR
to/TO
126/CD
1\/2/CD
on/IN
8.3/CD
million/CD
shares/NNS
,/,
British/NNP
Telecommuncations/NNPS
settled/VBD
6/CD
higher/JJR
at/IN
268/CD
,/,
and/CC
British/NNP
Petroleum/NNP
gained/VBD
1/CD
to/TO
307/CD
1\/2/CD
./.
In/IN
other/JJ
European/JJ
markets/NNS
,/,
share/NN
prices/NNS
ended/VBD
higher/JJR
in/IN
Frankfurt/NNP
,/,
lower/JJR

in/IN
Paris/NNP
,/,
Brussels/NNP
and/CC
Amsterdam/NNP
and/CC
mixed/VBN
in/IN
Stockholm/NNP
,/,
Milan/NNP
and/CC
Zurich/NNP
./.
South/JJ
African/JJ
gold/NN

stocks/NNS
were/VBD
slightly/RB
firmer/JJR
./.
Elsewhere/RB
,/,
stocks/NNS
rose/VBD
in/IN
Taipei/NNP
,/,
Singapore/NNP
,/,
Seoul/NNP
and/CC
Manila/NNP
and/CC
were/VBD
lower/JJR
in/IN
Hong/NNP
Kong/NNP
,/,
Wellington/NNP
and/CC
Sydney/NNP
./.
Here/RB
are/VBP
price/NN
trends/NNS
on/IN
the/DT
world/NN
's/POS
major/JJ
stock/NN
markets/NNS
,/,
as/IN
calculated/VBN
by/IN
Morgan/NNP
Stanley/NNP
Capital/NNP
International/NNP
Perspective/NNP
,/,
Geneva/NNP
./.
To/TO
make/VB
them/PRP
directly/RB
comparable/JJ
,/,
each/DT
index/NN
is/VBZ
based/VBN
on/IN
the/DT
close/NN
of/IN
1969/CD
equaling/VBG
100/CD
./.
The/DT
percentage/NN
change/NN
is/VBZ
since/IN
year-end/NN
./.
The/DT
nation/NN
's/POS
biggest/JJS
beverage/NN
companies/NNS
are/VBP
expected/VBN
to/TO
report/VB
stronger/JJR
third-quarter/NN
earnings/NNS
,/,
even/RB
as/IN
the/DT
soft-drink/NN
giants/NNS
take/VBP
their/PRP$
lumps/NNS
from/IN
higher/JJR
domestic/JJ
soda/NN
prices/NNS
and/CC
brewers/NNS
'/POS
struggle/NN
with/IN
flat/JJ
industry/NN
volume/NN
./.
Coca-Cola/NNP
Co./NNP
,/,
the/DT
first/JJ
of/IN
the/DT
group/NN
to/TO
report/VB
,/,
said/VBD
yesterday/NN
that/IN
earnings/NNS
rose/VBD
10/CD
%/NN
,/,
excluding/VBG
a/DT
gain/NN
from/IN
the/DT
sale/NN
of/IN
a/DT
bottled/JJ
water/NN
business/NN
./.
PepsiCo/NNP
Inc./NNP
and/CC
Anheuser-Busch/NNP
Cos./NNP
will/MD
report/VB
third-quarter/NN
earnings/NNS
gains/NNS
of/IN
at/IN
least/JJS
9/CD
%/NN
and/CC
14/CD
%/NN
,/,
respectively/RB
,/,
while/IN
results/NNS
for/IN
Coca-Cola/NNP
Enterprises/NNPS
Inc./NNP
and/CC
Adolph/NNP
Coors/NNP
Co./NNP
will/MD
decline/VB
,/,
analysts/NNS
estimate/VBP
./.
Since/IN
the/DT
summer/NN
,/,
soft-drink/NN
companies/NNS
have/VBP
been/VBN
trying/VBG
to/TO
extract/VB
themselves/PRP
from/IN
a/DT
price-slashing/JJ
war/NN
designed/VBN
to/TO
steal/VB
market/NN
share/NN
from/IN
each/DT
other/JJ
./.
The/DT
battle/NN
drove/VBD
up/IN
volumes/NNS
for/IN
several/JJ
years/NNS
,/,
but/CC
the/DT
discounted/VBN
prices/NNS
have/VBP
squeezed/VBN
bottlers/NNS
'/POS
profit/NN
margins/NNS
./.
Because/IN
raw/JJ
material/NN
costs/NNS
have/VBP
been/VBN
escalating/VBG
and/CC
because/IN
Coke/NNP
and/CC
Pepsi/NNP
have/VBP
become/VBN
bigger/JJR
owners/NNS
of/IN
bottling/NN
businesses/NNS
,/,
the/DT
companies/NNS
have/VBP
been/VBN
raising/VBG
soda/NN
pop/NN
prices/NNS
in/IN
recent/JJ
months/NNS
./.
That/IN
,/,
along/IN
with/IN
generally/RB
cooler/JJR
,/,
rainier/JJR
weather/NN
this/DT
year/NN
,/,
has/VBZ
slowed/VBN
the/DT
industry/NN
's/POS
volume/NN
growth/NN
./.
Unlike/IN
the/DT
4/CD
%/NN
to/TO
5/CD
%/NN
growth/NN
rate/NN
of/IN
recent/JJ
years/NNS
,/,
the/DT
soft-drink/NN
industry/NN
is/VBZ
expected/VBN
to/TO
report/VB
third-quarter/NN
volume/NN
was/VBD
,/,
at/IN
worst/JJS
,/,
flat/JJ
,/,
and/CC
at/IN
best/JJS
,/,
up/IN
only/RB
3/CD
%/NN
./.
That/DT
's/VBZ
a/DT
fairly/RB
wide/JJ
range/NN
,/,
given/VBN
the/DT
sheer/JJ
size/NN
of/IN
the/DT
$/$
42/CD
billion/CD
soft-drink/NN
industry/NN
./.
But/CC
analysts/NNS
,/,
and/CC
indeed/RB
,/,
some/DT
of/IN
the/DT
soda/NN
companies/NNS
,/,
have/VBP
had/VBN
difficulty/NN
predicting/VBG
consumer/NN
reaction/NN
to/TO
higher/JJR
prices/NNS
./.
In/IN
August/NNP
,/,
Coca-Cola/NNP
Enterprises/NNPS
,/,
Coke/NNP
's/POS
largest/JJS
bottling/VBG
operation/NN
,/,
said/VBD
its/PRP$
1989/CD
earnings/NNS
would/MD
fall/VB
as/RB
much/RB
as/IN
37/CD
%/NN
,/,
partly/RB
because/IN
it/PRP
misjudged/VBD
consumer/NN
resistance/NN
to/TO
the/DT
new/JJ
prices/NNS
,/,
which/WDT
were/VBD
2/CD
%/NN
to/TO
3/CD
%/NN
higher/JJR
on/IN
average/NN
in/IN
July/NNP
and/CC
August/NNP
./.
Blaming/VBG
higher/JJR
prices/NNS
in/IN
part/NN
,/,
Coca-Cola/NNP
said/VBD
its/PRP$
third-quarter/NN
unit/NN
case/NN
sales/NNS
were/VBD
flat/JJ
./.
The/DT
volume/NN
in/IN
the/DT
summer/NN
selling/VBG
season/NN
suffered/VBD
,/,
too/RB
,/,
from/IN
the/DT
lack/NN
of/IN
a/DT
critical/JJ
,/,
yet/RB
intangible/JJ
,/,
element/NN
in/IN
the/DT
softdrink/NN
industry/NN
:/:
excitement/NN
./.
After/IN
a/DT
controversial/JJ
flap/NN
involving/VBG
a/DT
Madonna/NNP
music/NN
video/NN
,/,
Pepsi/NNP
dropped/VBD
its/PRP$
plans/NNS
for/IN
a/DT
big/JJ
summer/NN
advertising/NN
promotion/NN
featuring/VBG
the/DT
pop/NN
singer/NN
./.
And/CC
there/EX
have/VBP
been/VBN
no/DT
major/JJ
new/JJ
product/NN
introductions/NNS
,/,
such/JJ
as/IN
cherry-flavored/JJ
soft/JJ
drinks/NNS
,/,
which/WDT
made/VBD
sales/NNS
sizzle/VB
two/CD
years/NNS
ago/IN
./.
``/``
What/WP
's/VBZ
been/VBN
hot/JJ
in/IN
the/DT
soft-drink/NN
business/NN
lately/RB
?/.
''/''
asks/VBZ
Emanuel/NNP
Goldman/NNP
,/,
an/DT
analyst/NN
with/IN
PaineWebber/NNP
Inc/NNP
./.
``/``
Nothing/NN
./.
''/''
Still/RB
,/,
the/DT
beverage/NN
industry/NN
's/POS
slower/JJR
results/NNS
in/IN
the/DT
latest/JJS
quarter/NN
could/MD
lead/VB
to/TO
some/DT
positive/JJ
earnings/NNS
surprises/NNS
in/IN
next/JJ
year/NN
's/POS
third/JJ
quarter/NN
,/,
when/WRB
comparisons/NNS
will/MD
be/VB
easier/JJR
,/,
said/VBD
George/NNP
Thompson/NNP
,/,
an/DT
analyst/NN
with/IN
Prudential-Bache/NNP
Securities/NNPS
Inc/NNP
./.
``/``
This/DT
year/NN
's/POS
ugly/JJ
ducklings/NNS
will/MD
be/VB
next/JJ
year/NN
's/POS
swans/NNS
,/,
''/''
he/PRP
said/VBD
./.
Coca-Cola/NNP
's/POS
earnings/NNS
were/VBD
stronger/JJR
primarily/RB
because/IN
of/IN
sharply/RB
improved/VBN
volume/NN
from/IN
the/DT
company/NN
's/POS
international/JJ
operations/NNS
,/,
which/WDT
account/VBP
for/IN
the/DT
bulk/NN
of/IN
its/PRP$
business/NN
./.
Volume/NN
rose/VBD
14/CD
%/NN
,/,
well/RB
ahead/RB
of/IN
analysts/NNS
'/POS
10/CD
%/NN
to/TO
11/CD
%/NN
projections/NNS
for/IN
the/DT
business/NN
./.
Analysts/NNS
are/VBP
looking/VBG
for/IN
Pepsi/NNP
to/TO
earn/VB
as/RB
much/RB
as/IN
$/$
1.04/CD
a/DT
share/NN
,/,
with/IN
most/JJS
estimates/NNS
settling/VBG
around/IN
99/CD
cents/NNS
,/,
compared/VBN
with/IN
91/CD
cents/NNS
in/IN
the/DT
year-ago/JJ
quarter/NN
./.
The/DT
latest/JJS
quarter/NN
results/NNS
,/,
are/VBP
expected/VBN
to/TO
be/VB
a/DT
little/RB
soft/RB
compared/VBN
with/IN
Pepsi/NNP
's/POS
historical/JJ
earnings/NNS
growth/NN
rate/NN
,/,
reflecting/VBG
some/DT
dilution/NN
for/IN
snack-food/NN
and/CC
soft-drink/NN
bottling/VBG
acquisitions/NNS
./.
Stronger/JJR
restaurant/NN
and/CC
snack-food/NN
sales/NNS
helped/VBD
boost/VB
Pepsi/NNP
's/POS
profits/NNS
,/,
too/RB
,/,
analysts/NNS
said/VBD
./.
Anheuser-Busch/NNP
is/VBZ
expected/VBN
to/TO
report/VB
third-quarter/NN
earnings/NNS
between/IN
89/CD
cents/NNS
and/CC
92/CD
cents/NNS
a/DT
share/NN
,/,
compared/VBN
with/IN
78/CD
cents/NNS
a/DT
year/NN
earlier/RBR
./.
On/IN
the/DT
strength/NN
of/IN
Bud/NNP
Light/NNP
,/,
Busch/NNP
and/CC
Michelob/NNP
Dry/NNP
,/,
the/DT
company/NN
's/POS
volume/NN
in/IN
the/DT
quarter/NN
is/VBZ
estimated/VBN
to/TO
increase/VB
about/IN
3/CD
%/NN
to/TO
4/CD
%/NN
,/,
while/IN
the/DT
rest/NN
of/IN
the/DT
industry/NN
will/MD
be/VB
flat/JJ
,/,
or/CC
up/IN
slightly/RB
./.
Coors/NNP
earnings/NNS
are/VBP
expected/VBN
to/TO
fall/VB
,/,
as/IN
its/PRP$
volume/NN
declines/VBZ
perhaps/RB
3/CD
%/NN
to/TO
4/CD
%/NN
./.
Coors/NNP
is/VBZ
expected/VBN
to/TO
achieve/VB
greater/JJR
production/NN
efficiencies/NNS
once/IN
it/PRP
completes/VBZ
its/PRP$
plan/NN
,/,
announced/VBD
last/JJ
month/NN
,/,
to/TO
acquire/VB
most/JJS
of/IN
the/DT
beer-related/JJ
assets/NNS
of/IN
Stroh/NNP
Brewery/NNP
Co/NNP
./.
``/``
Time/NN
,/,
''/''
says/VBZ
Tamara/NNP
Geva/NNP
,/,
``/``
is/VBZ
meaningless/JJ
./.
My/PRP$
youth/NN
in/IN
Petrograd/NNP
,/,
my/PRP$
father/NN
--/:
whom/WP
I/PRP
never/RB
saw/VBD
again/RB
after/IN
1924/CD
,/,
when/WRB
I/PRP
left/VBD
Russia/NNP
for/IN
the/DT
West/NNP
--/:
the/DT
whole/NN
of/IN
my/PRP$
early/JJ
life/NN
,/,
it/PRP
's/VBZ
all/DT
been/VBN
brought/VBN
back/RB
to/TO
me/PRP
by/IN
the/DT
arrival/NN
,/,
out/IN
of/IN
a/DT
clear/JJ
blue/JJ
sky/NN
,/,
of/IN
this/DT
exhibition/NN
./.
The/DT
years/NNS
between/IN
Petrograd/NNP
and/CC
New/NNP
York/NNP
are/VBP
the/DT
dream/NN
./.
The/DT
objects/NNS
I/PRP
grew/VBD
up/IN
with/IN
,/,
the/DT
things/NNS
I/PRP
thought/VBD
I/PRP
had/VBD
said/VBN
goodbye/UH
to/TO
forever/RB
--/:
that/DT
is/VBZ
the/DT
reality/NN
./.
''/''
The/DT
reality/NN
to/TO
which/WDT
Ms./NNP
Geva/NNP
refers/VBZ
is/VBZ
the/DT
hoard/NN
of/IN
dance/NN
memorabilia/NNS
currently/RB
on/IN
view/NN
at/IN
Eduard/NNP
Nakhamkin/NNP
Fine/NNP
Arts/NNP
here/RB
,/,
under/IN
the/DT
title/NN
,/,
``/``
100/CD
Years/NNPS
of/IN
Russian/NNP
Ballet/NNP
:/:
1830-1930/CD
./.
''/''
Consisting/VBG
of/IN
roughly/RB
400/CD
items/NNS
from/IN
the/DT
Leningrad/NNP
State/NNP
Museum/NNP
of/IN
Theater/NNP
and/CC
Music/NNP
,/,
the/DT
show/NN
offers/VBZ
tantalizing/VBG
glimpses/NNS
of/IN
a/DT
rich/JJ
artistic/JJ
achievement/NN
./.
For/IN
Ms./NNP
Geva/NNP
,/,
an/DT
actress/NN
and/CC
author/NN
who/WP
began/VBD
her/PRP$
career/NN
as/IN
a/DT
dancer/NN
during/IN
the/DT
early/JJ
days/NNS
of/IN
the/DT
Soviet/JJ
state/NN
under/IN
her/PRP$
original/JJ
name/NN
of/IN
Gevergeyeva/NNP
,/,
it/PRP
offers/VBZ
something/NN
more/RBR
:/:
a/DT
sense/NN
of/IN
completion/NN
,/,
the/DT
lifting/NN
of/IN
a/DT
curtain/NN
on/IN
the/DT
past/NN
./.
A/DT
great/JJ
deal/NN
of/IN
what/WP
is/VBZ
currently/RB
on/IN
display/NN
in/IN
New/NNP
York/NNP
belonged/VBD
to/TO
her/PRP$
father/NN
./.
These/DT
lithographs/NNS
,/,
designs/NNS
,/,
programs/NNS
,/,
photographs/NNS
,/,
which/WDT
she/PRP
pored/VBD
over/IN
day/NN
after/IN
day/NN
,/,
fed/VBN
her/PRP$
adolescent/NN
yearning/NN
to/TO
join/VB
the/DT
ballet/NN
./.
Of/IN
this/DT
ambition/NN
her/PRP$
father/NN
disapproved/VBD
,/,
because/RB
,/,
he/PRP
said/VBD
,/,
dancers/NNS
were/VBD
n't/RB
properly/RB
educated/VBN
./.
Levki/NNP
Gevergeyev/NNP
had/VBD
a/DT
passion/NN
for/IN
learning/VBG
and/CC
for/IN
the/DT
arts/NNS
,/,
especially/RB
the/DT
performing/VBG
arts/NNS
./.
In/IN
addition/NN
to/TO
his/PRP$
holdings/NNS
of/IN
theatrical/JJ
material/NN
,/,
he/PRP
also/RB
owned/VBD
50,000/CD
books/NNS
,/,
among/IN
them/PRP
a/DT
great/JJ
cache/NN
of/IN
bibles/NNS
,/,
although/IN
,/,
in/IN
fact/NN
,/,
he/PRP
was/VBD
an/DT
atheist/NN
./.
That/WDT
did/VBD
n't/RB
keep/VB
him/PRP
from/IN
making/VBG
a/DT
great/JJ
deal/NN
of/IN
money/NN
manufacturing/VBG
gold/JJ
vestments/NNS
for/IN
the/DT
Russian/NNP
Orthodox/NNP
Church/NNP
./.
He/PRP
owned/VBD
a/DT
26-room/JJ
house/NN
,/,
in/IN
which/WDT
,/,
according/VBG
to/TO
his/PRP$
daughter/NN
,/,
four/CD
enormous/JJ
rooms/NNS
were/VBD
filled/VBN
with/IN
his/PRP$
collection/NN
./.
After/IN
the/DT
Revolution/NNP
,/,
when/WRB
everything/NN
he/PRP
owned/VBD
was/VBD
sequestered/VBN
by/IN
the/DT
Bolsheviks/NNPS
,/,
he/PRP
was/VBD
put/VBN
in/IN
charge/NN
of/IN
the/DT
state/NN
's/POS
first/JJ
Museum/NNP
of/IN
Theater/NNP
and/CC
Music/NNP
,/,
situated/VBN
in/IN
Ostrovsky/NNP
Square/NNP
./.
In/IN
effect/NN
,/,
he/PRP
became/VBD
the/DT
official/JJ
curator/NN
of/IN
his/PRP$
former/JJ
collection/NN
,/,
which/WDT
grew/VBD
prodigiously/RB
and/CC
soon/RB
included/VBD
several/JJ
thousand/CD
costumes/NNS
./.
Despite/IN
the/DT
deprivations/NNS
to/TO
which/WDT
her/PRP$
father/NN
was/VBD
subject/JJ
in/IN
those/DT
years/NNS
,/,
Ms./NNP
Geva/NNP
imagines/VBZ
that/IN
he/PRP
must/MD
have/VB
been/VBN
happy/JJ
to/TO
be/VB
allowed/VBN
to/TO
remain/VB
with/IN
the/DT
objects/NNS
he/PRP
had/VBD
assembled/VBN
so/RB
devotedly/RB
./.
While/IN
she/PRP
found/VBD
out/IN
soon/RB
after/IN
the/DT
war/NN
that/IN
he/PRP
had/VBD
perished/VBN
during/IN
the/DT
Siege/NNP
of/IN
Leningrad/NNP
,/,
she/PRP
did/VBD
n't/RB
know/VB
until/IN
the/DT
curators/NNS
arrived/VBD
from/IN
the/DT
Soviet/NNP
Union/NNP
with/IN
the/DT
contents/NNS
of/IN
this/DT
exhibition/NN
that/IN
he/PRP
had/VBD
died/VBN
of/IN
starvation/NN
on/IN
a/DT
sofa/NN
in/IN
the/DT
museum/NN
./.
Though/IN
weakened/VBN
by/IN
malnutrition/NN
,/,
he/PRP
was/VBD
unwilling/JJ
to/TO
budge/VB
in/IN
case/NN
the/DT
collection/NN
was/VBD
bombed/VBN
and/CC
needed/VBN
to/TO
be/VB
saved/VBN
./.
As/IN
it/PRP
happened/VBD
,/,
the/DT
collection/NN
survived/VBD
intact/JJ
./.
Today/NN
,/,
the/DT
Leningrad/NNP
State/NNP
Museum/NNP
of/IN
Theater/NNP
and/CC
Music/NNP
owns/VBZ
some/DT
400,000/CD
items/NNS
./.
For/IN
Americans/NNPS
,/,
the/DT
most/RBS
interesting/JJ
of/IN
the/DT
400/CD
items/NNS
on/IN
display/NN
in/IN
New/NNP
York/NNP
include/VBP
designs/NNS
by/IN
the/DT
German-born/JJ
Andrei/NNP
Roller/NNP
1805-91/CD
the/DT
Russian/JJ
productions/NNS
of/IN
important/JJ
early/JJ
19th-century/JJ
Paris/NNP
ballets/NNS
./.
No/DT
less/RBR
illuminating/JJ
are/VBP
the/DT
designs/NNS
from/IN
Petipa/NNP
's/POS
``/``
Sleeping/NNP
Beauty/NNP
''/''
(/(
1890/CD
Nutcracker/NNP
''/''
(/(
1892/CD
Raymonda/NNP
''/''
(/(
1897/CD
which/WDT
shed/VBD
light/NN
on/IN
the/DT
role/NN
played/VBN
by/IN
spectacle/NN
in/IN
the/DT
ballets/NNS
of/IN
this/DT
great/JJ
choreographer/NN
./.
There/EX
also/RB
is/VBZ
much/JJ
to/TO
be/VB
learned/VBN
from/IN
the/DT
early/JJ
stage/NN
photographs/NNS
of/IN
Petipa/NNP
's/POS
work/NN
,/,
which/WDT
,/,
though/IN
posed/VBN
,/,
extend/VBP
our/PRP$
knowledge/NN
of/IN
its/PRP$
theatrical/NN
ambiance/NN
./.
Petipa/NNP
,/,
the/DT
fountainhead/NN
of/IN
balletic/JJ
classicism/NN
,/,
emerges/VBZ
as/IN
the/DT
show/NN
's/POS
hero/NN
,/,
whether/IN
perceived/VBN
through/IN
scenes/NNS
from/IN
his/PRP$
ballets/NNS
or/CC
through/IN
glimpses/NNS
of/IN
the/DT
dancers/NNS
whose/WP$
technique/NN
and/CC
artistry/NN
his/PRP$
choreography/NN
played/VBD
a/DT
decisive/JJ
role/NN
in/IN
shaping/VBG
./.
Among/IN
the/DT
most/RBS
important/JJ
of/IN
the/DT
Petipa/NNP
ballerinas/NNS
is/VBZ
Mathilde/NNP
Kchessinska/NNP
,/,
represented/VBN
in/IN
a/DT
series/NN
of/IN
fascinating/JJ
photographs/NNS
./.
The/DT
mistress/NN
of/IN
Nicholas/NNP
II/NNP
until/IN
his/PRP$
engagement/NN
to/TO
Alexandra/NNP
of/IN
Hesse-Darmstadt/NNP
,/,
she/PRP
dominated/VBD
the/DT
Imperial/NNP
Ballet/NNP
of/IN
St./NNP
Petersburg/NNP
as/IN
much/JJ
through/IN
her/PRP
dancing/NN
as/IN
through/IN
her/PRP$
connections/NNS
./.
Even/RB
Isadora/NNP
Duncan/NNP
,/,
the/DT
self-professed/JJ
enemy/NN
of/IN
ballet/NN
,/,
found/VBD
her/PRP
enchanting/JJ
./.
A/DT
1910/CD
photograph/NN
shows/VBZ
Kchessinska/NNP
reclining/VBG
on/IN
a/DT
chaise/NN
longue/NN
in/IN
her/PRP$
St./NNP
Petersburg/NNP
mansion/NN
./.
Clearly/RB
visible/JJ
in/IN
the/DT
background/NN
is/VBZ
the/DT
balcony/NN
from/IN
which/WDT
Lenin/NNP
was/VBD
to/TO
proclaim/VB
the/DT
Revolution/NN
./.
The/DT
Diaghilev/NNP
material/NN
is/VBZ
less/RBR
interesting/JJ
./.
The/DT
Ballets/NNP
Russes/NNP
never/RB
appeared/VBD
in/IN
Russia/NNP
and/CC
most/JJS
of/IN
the/DT
important/JJ
artifacts/NNS
are/VBP
in/IN
the/DT
West/NN
./.
George/NNP
Balanchine/NNP
,/,
to/TO
whom/WP
Ms./NNP
Geva/NNP
was/VBD
married/VBN
as/IN
a/DT
teenager/NN
in/IN
1923/CD
and/CC
who/WP
began/VBD
his/PRP$
career/NN
as/IN
an/DT
artistic/JJ
revolutionary/NN
,/,
also/RB
gets/VBZ
short/JJ
shrift/NN
./.
Better/RB
by/IN
far/RB
is/VBZ
the/DT
representation/NN
accorded/VBD
the/DT
avant-garde/JJ
dance/NN
that/WDT
flourished/VBD
in/IN
the/DT
U.S.S.R./NNP
until/IN
ruthlessly/RB
repressed/VBN
during/IN
the/DT
Stalin/NNP
years/NNS
./.
The/DT
presence/NN
of/IN
so/RB
much/JJ
material/NN
concerning/VBG
Feodor/NNP
Lopukhov/NNP
,/,
the/DT
leading/VBG
choreographer/NN
of/IN
the/DT
post-Revolutionary/JJ
Leningrad/NNP
school/NN
,/,
and/CC
virtually/RB
unknown/JJ
in/IN
this/DT
country/NN
,/,
is/VBZ
particularly/RB
welcome/JJ
./.
Less/JJR
welcome/NN
is/VBZ
the/DT
random/JJ
nature/NN
of/IN
the/DT
exhibition/NN
,/,
which/WDT
has/VBZ
no/DT
point/NN
to/TO
make/VB
beyond/IN
the/DT
indisputable/JJ
fact/NN
that/IN
there/EX
are/VBP
treasures/NNS
in/IN
the/DT
Leningrad/NNP
State/NNP
Museum/NNP
of/IN
Theater/NNP
and/CC
Music/NNP
./.
Miscellaneous/JJ
and/CC
haphazard/JJ
--/:
did/VBD
we/PRP
really/RB
need/VB
to/TO
see/VB
Anna/NNP
Pavlova/NNP
's/POS
tea/NN
set/NN
or/CC
Marie/NNP
Petipa/NNP
's/POS
slipper/NN
?/.
--/:
the/DT
show/NN
invites/VBZ
uninformed/JJ
,/,
and/CC
thus/RB
superficial/JJ
,/,
viewing/NN
./.
While/IN
it/PRP
's/VBZ
an/DT
astonishing/JJ
achievement/NN
for/IN
the/DT
Nakhamkin/NNP
gallery/NN
to/TO
have/VB
organized/VBN
the/DT
show/NN
in/IN
only/RB
three/CD
months/NNS
,/,
the/DT
time/NN
has/VBZ
surely/RB
come/VBN
to/TO
present/VB
this/DT
kind/NN
of/IN
material/NN
in/IN
ways/NNS
that/WDT
reveal/VBP
a/DT
context/NN
and/CC
a/DT
point/NN
of/IN
view/NN
./.
Even/RB
the/DT
title/NN
is/VBZ
misleading/VBG
:/:
The/DT
exhibition/NN
covers/VBZ
ballet/NN
,/,
not/RB
in/IN
Russia/NNP
,/,
but/CC
only/RB
in/IN
what/WP
is/VBZ
now/RB
Leningrad/NNP
./.
It/PRP
also/RB
begins/VBZ
before/IN
1830/CD
and/CC
ends/VBZ
after/IN
1930/CD
./.
In/IN
compiling/VBG
the/DT
catalog/NN
,/,
the/DT
gallery/NN
has/VBZ
missed/VBN
a/DT
great/JJ
opportunity/NN
to/TO
document/VB
a/DT
lot/NN
of/IN
rare/JJ
material/NN
./.
Though/IN
well-illustrated/JJ
,/,
the/DT
publication/NN
is/VBZ
uninformative/JJ
and/CC
often/RB
simply/RB
untrustworthy/JJ
./.
Clearly/RB
,/,
no/DT
dance/NN
lover/NN
should/MD
skip/VB
the/DT
show/NN
,/,
but/CC
it/PRP
's/VBZ
only/RB
a/DT
stopgap/NN
for/IN
the/DT
serious/JJ
,/,
scholarly/JJ
endeavor/NN
we/PRP
really/RB
need/VBP
./.
The/DT
show/NN
closes/VBZ
in/IN
New/NNP
York/NNP
on/IN
Oct./NNP
20/CD
and/CC
reopens/VBZ
in/IN
Saratoga/NNP
,/,
N.Y./NNP
,/,
on/IN
May/NNP
19/CD
at/IN
the/DT
National/NNP
Museum/NNP
of/IN
Dance/NNP
,/,
its/PRP$
co-sponsor/NN
./.
``/``
In/IN
our/PRP$
business/NN
,/,
''/''
says/VBZ
Groupe/NNP
Bull/NNP
Chairman/NNP
Francis/NNP
Lorentz/NNP
,/,
``/``
one/CD
and/CC
one/CD
sometimes/RB
add/VBP
up/IN
to/TO
1.1/CD
,/,
or/CC
1.2/CD
,/,
but/CC
rarely/RB
two/CD
./.
''/''
Mr./NNP
Lorentz/NNP
is/VBZ
talking/VBG
about/IN
mergers/NNS
,/,
not/RB
mathematics/NNS
./.
Bull/NNP
,/,
the/DT
French-government-owned/JJ
computer/NN
maker/NN
,/,
earlier/RBR
this/DT
month/NN
agreed/VBD
to/TO
buy/VB
the/DT
computer/NN
business/NN
of/IN
Zenith/NNP
Electronics/NNP
Corp./NNP
for/IN
as/RB
much/JJ
as/IN
$/$
635/CD
million/CD
,/,
but/CC
denies/VBZ
this/DT
is/VBZ
a/DT
merger/NN
./.
Bull/NNP
says/VBZ
it/PRP
intends/VBZ
to/TO
retain/VB
existing/VBG
management/NN
of/IN
the/DT
U.S./NNP
unit/NN
and/CC
keep/VB
the/DT
Zenith/NNP
label/NN
,/,
while/IN
selling/VBG
Zenith/NNP
personal/JJ
computers/NNS
--/:
a/DT
product/NN
line/NN
in/IN
which/WDT
Bull/NNP
had/VBD
been/VBN
lagging/VBG
--/:
as/IN
part/NN
of/IN
Bull/NNP
data-processing/JJ
systems/NNS
./.
Merger/NN
or/CC
not/RB
,/,
the/DT
Zenith/NNP
acquisition/NN
is/VBZ
a/DT
key/JJ
part/NN
of/IN
Mr./NNP
Lorentz/NNP
's/POS
plan/NN
to/TO
grow/VB
Bull/NNP
--/:
the/DT
world/NN
's/POS
11th/JJ
biggest/JJS
computer/NN
company/NN
last/JJ
year/NN
--/:
into/IN
a/DT
profitable/JJ
member/NN
of/IN
the/DT
top/JJ
five/CD
or/CC
six/CD
computer/NN
makers/NNS
./.
It/PRP
wo/MD
n't/RB
be/VB
easy/JJ
./.
Bull/NNP
had/VBD
a/DT
first-half/JJ
net/JJ
loss/NN
of/IN
537/CD
million/CD
francs/NNS
$/$
82.7/CD
million/CD
revenue/NN
of/IN
14/CD
billion/CD
francs/NNS
$/$
2.16/CD
billion/CD
Mr./NNP
Lorentz/NNP
says/VBZ
his/PRP$
objective/NN
remains/VBZ
posting/VBG
a/DT
small/JJ
profit/NN
for/IN
this/DT
year/NN
,/,
but/CC
he/PRP
is/VBZ
n't/RB
certain/JJ
the/DT
company/NN
will/MD
make/VB
it/PRP
into/IN
the/DT
black/NN
./.
He/PRP
adds/VBZ
that/IN
any/DT
full-year/JJ
loss/NN
wo/MD
n't/RB
be/VB
``/``
anywhere/RB
as/RB
big/JJ
''/''
as/IN
the/DT
first-half/JJ
loss/NN
,/,
which/WDT
was/VBD
caused/VBN
in/IN
part/NN
by/IN
production/NN
problems/NNS
,/,
``/``
which/WDT
are/VBP
being/VBG
solved/VBN
,/,
''/''
at/IN
the/DT
company/NN
's/POS
Angers/NNP
,/,
France/NNP
,/,
circuit-board/NN
plant/NN
and/CC
a/DT
squeeze/NN
on/IN
profit/NN
margins/NNS
because/IN
of/IN
growing/VBG
competition/NN
./.
In/IN
any/DT
event/NN
,/,
Bull/NNP
thus/RB
far/RB
has/VBZ
n't/RB
had/VBN
any/DT
trouble/NN
finding/VBG
the/DT
cash/NN
to/TO
fund/VB
its/PRP$
acquisitions/NNS
./.
Bull/NNP
posted/VBD
a/DT
profit/NN
in/IN
1988/CD
of/IN
303/CD
million/CD
francs/NNS
on/IN
revenue/NN
of/IN
31.55/CD
billion/CD
francs/NNS
./.
The/DT
other/JJ
key/NN
to/TO
Bull/NNP
's/POS
future/JJ
health/NN
is/VBZ
its/PRP$
other/JJ
U.S./NNP
leg/NN
./.
Bull/NNP
last/JJ
year/NN
increased/VBD
to/TO
69.4/CD
%/NN
its/PRP$
controlling/VBG
interest/NN
in/IN
Honeywell/NNP
Bull/NNP
Inc/NNP
./.
Honeywell/NNP
Inc./NNP
retains/VBZ
15.6/CD
%/NN
,/,
and/CC
NEC/NNP
Corp./NNP
of/IN
Japan/NNP
owns/VBZ
the/DT
remaining/VBG
15/CD
%/NN
./.
In/IN
addition/NN
,/,
Bull/NNP
renamed/VBD
the/DT
U.S./NNP
company/NN
Bull/NNP
HN/NNP
Information/NNP
Services/NNPS
Inc/NNP
./.
Bull/NNP
HN/NNP
reports/VBZ
to/TO
Mr./NNP
Lorentz/NNP
as/IN
chairman/NN
of/IN
holding/VBG
company/NN
Cie./NNP
des/NNP
Machines/NNP
Bull/NNP
./.
During/IN
the/DT
past/JJ
decade/NN
or/CC
so/RB
,/,
Bull/NNP
and/CC
Honeywell/NNP
tried/VBD
various/JJ
approaches/NNS
to/TO
combining/VBG
their/PRP$
businesses/NNS
,/,
none/NN
of/IN
which/WDT
really/RB
jelled/VBD
./.
``/``
We/PRP
were/VBD
spending/VBG
all/PDT
our/PRP$
energies/NNS
internally/RB
,/,
while/IN
externally/RB
the/DT
world/NN
was/VBD
changing/VBG
at/IN
breakneck/JJ
speed/NN
,/,
''/''
Mr./NNP
Lorentz/NNP
says/VBZ
./.
But/CC
now/RB
,/,
with/IN
Bull/NNP
in/IN
firm/JJ
control/NN
,/,
these/DT
U.S./NNP
operations/NNS
are/VBP
key/JJ
ingredients/NNS
in/IN
Mr./NNP
Lorentz/NNP
's/POS
plans/NNS
to/TO
ensure/VB
that/IN
Bull/NNP
remains/VBZ
one/CD
of/IN
the/DT
half-dozen/NN
or/CC
so/RB
world-wide/JJ
,/,
full-range/JJ
computer/NN
companies/NNS
likely/JJ
to/TO
survive/VB
the/DT
1990s/CD
./.
To/TO
do/VB
so/RB
,/,
Bull/NNP
is/VBZ
planting/VBG
itself/PRP
firmly/RB
in/IN
the/DT
U.S./NNP
,/,
where/WRB
,/,
says/VBZ
Mr./NNP
Lorentz/NNP
,/,
a/DT
lot/NN
of/IN
the/DT
best/JJS
people/NNS
and/CC
research/NN
are/VBP
./.
The/DT
Zenith/NNP
buy/NN
means/VBZ
Bull/NNP
will/MD
derive/VB
22/CD
%/NN
of/IN
its/PRP$
revenue/NN
from/IN
the/DT
U.S./NNP
--/:
up/IN
from/IN
18/CD
%/NN
previously/RB
--/:
and/CC
the/DT
company/NN
spends/VBZ
30/CD
%/NN
of/IN
its/PRP$
3.64/CD
billion-franc/NN
research/NN
and/CC
development/NN
budget/NN
in/IN
the/DT
U.S/NNP
./.
Keeping/NNP
Zenith/NNP
relatively/RB
independant/JJ
,/,
says/VBZ
Mr./NNP
Lorentz/NNP
,/,
makes/VBZ
sense/NN
because/IN
``/``
they/PRP
are/VBP
completely/RB
different/JJ
cultures/NNS
,/,
making/VBG
personal/JJ
computers/NNS
,/,
like/IN
Zenith/NNP
,/,
and/CC
making/VBG
mainframes/NNS
like/IN
Bull/NNP
./.
''/''
He/PRP
says/VBZ
disarmingly/RB
:/:
``/``
We/PRP
are/VBP
n't/RB
fast/RB
enough/RB
./.
We/PRP
mainframe/NN
makers/NNS
cycles/NNS
of/IN
four/CD
or/CC
five/CD
years/NNS
of/IN
development/NN
and/CC
product/NN
life/NN
./.
They/PRP
PC/NNP
makers/NNS
six/CD
months/NNS
of/IN
development/NN
and/CC
maybe/RB
12/CD
months/NNS
of/IN
shelf/NN
life/NN
./.
They/PRP
can/MD
afford/VB
to/TO
take/VB
some/DT
risks/NNS
and/CC
fail/VB
./.
''/''
``/``
It/PRP
is/VBZ
absolutely/RB
essential/JJ
to/TO
keep/VB
Zenith/NNP
's/POS
originality/NN
,/,
its/PRP$
extraordinary/JJ
force/NN
,/,
''/''
the/DT
47-year-old/JJ
Mr./NNP
Lorentz/NNP
adds/VBZ
./.
``/``
Our/PRP$
vocation/NN
is/VBZ
to/TO
be/VB
able/JJ
to/TO
respond/VB
to/TO
any/DT
question/NN
our/PRP$
clients/NNS
ask/VBP
,/,
''/''
says/VBZ
Mr./NNP
Lorentz/NNP
,/,
who/WP
joined/VBD
Bull/NNP
seven/CD
years/NNS
ago/IN
after/IN
stints/NNS
as/IN
chief/NN
financial/JJ
officer/NN
of/IN
a/DT
water/NN
company/NN
and/CC
various/JJ
posts/NNS
in/IN
the/DT
French/NNP
Treasury/NNP
./.
``/``
We/PRP
want/VBP
to/TO
be/VB
able/JJ
to/TO
offer/VB
complete/JJ
systems/NNS
in/IN
specialized/JJ
areas/NNS
,/,
like/IN
banking/NN
,/,
ranging/VBG
from/IN
the/DT
automated-teller/NN
machines/NNS
to/TO
the/DT
front-desk/NN
workstation/NN
to/TO
the/DT
back-office/NN
equipment/NN
to/TO
the/DT
mainframe/NN
computer/NN
./.
To/TO
do/VB
these/DT
we/PRP
need/VBP
to/TO
make/VB
all/PDT
the/DT
basic/JJ
building/NN
blocks/NNS
./.
''/''
Mr./NNP
Lorentz/NNP
succeeded/VBD
Jacques/NNP
Stern/NNP
as/IN
chairman/NN
of/IN
Bull/NNP
in/IN
June/NNP
,/,
and/CC
like/IN
his/PRP$
predecessor/NN
,/,
he/PRP
is/VBZ
a/DT
crusader/NN
for/IN
``/``
open/JJ
software/NN
''/''
--/:
that/DT
is/VBZ
standards/NNS
that/WDT
will/MD
work/VB
on/IN
the/DT
machines/NNS
of/IN
various/JJ
makers/NNS
--/:
in/IN
order/NN
to/TO
give/VB
smaller/JJR
companies/NNS
like/IN
Bull/NNP
a/DT
chance/NN
against/IN
industry/NN
giants/NNS
./.
Mr./NNP
Lorentz/NNP
,/,
Mr./NNP
Stern/NNP
's/POS
No./NN
2/CD
since/IN
1982/CD
,/,
inherits/VBZ
the/DT
task/NN
of/IN
making/VBG
Bull/NNP
the/DT
biggest/JJS
and/CC
healthiest/JJS
European/JJ
soup-to-nuts/JJ
computer/NN
company/NN
,/,
competing/VBG
globally/RB
with/IN
the/DT
likes/NNS
of/IN
International/NNP
Business/NNP
Machines/NNPS
Corp./NNP
,/,
Unisys/NNP
Corp./NNP
,/,
and/CC
a/DT
handful/NN
of/IN
Japanese/JJ
companies/NNS
./.
Counting/VBG
only/JJ
sales/NNS
of/IN
computer/NN
equipment/NN
,/,
Bull/NNP
is/VBZ
already/RB
the/DT
biggest/JJS
in/IN
Europe/NNP
,/,
ahead/RB
of/IN
Siemens/NNP
AG/NNP
of/IN
West/NNP
Germany/NNP
and/CC
Ing/NNP
./.
C./NNP
Olivetti/NNP
&/CC
Co./NNP
of/IN
Italy/NNP
,/,
Mr./NNP
Lorentz/NNP
says/VBZ
./.
Mr./NNP
Lorentz/NNP
,/,
an/DT
intense/JJ
,/,
cerebral/JJ
product/NN
of/IN
France/NNP
's/POS
elite/NN
``/``
Ecole/NNP
National/NNP
d'Administration/NNP
''/''
likes/VBZ
to/TO
go/VB
rock/NN
climbing/VBG
in/IN
his/PRP$
spare/JJ
time/NN
,/,
and/CC
used/VBD
to/TO
practice/VB
the/DT
martial/JJ
art/NN
of/IN
aikido/FW
./.
He/PRP
will/MD
discuss/VB
frankly/RB
Bull/NNP
's/POS
past/JJ
problems/NNS
;/:
when/WRB
asked/VBD
if/IN
the/DT
company/NN
has/VBZ
suffered/VBN
from/IN
an/DT
unfocussed/VBN
image/NN
,/,
he/PRP
readily/RB
agrees/VBZ
./.
He/PRP
allows/VBZ
that/IN
the/DT
products/NNS
of/IN
all/DT
computer/NN
makers/NNS
are/VBP
getting/VBG
more/RBR
and/CC
more/RBR
alike/RB
--/:
``/``
a/DT
certain/JJ
banalization/NN
''/''
he/PRP
calls/VBZ
it/PRP
--/:
and/CC
that/DT
specialized/JJ
service/NN
will/MD
make/VB
the/DT
difference/NN
in/IN
the/DT
future/NN
./.
``/``
How/WRB
we/PRP
manage/VBP
the/DT
problem/NN
of/IN
service/NN
will/MD
make/VB
all/PDT
the/DT
difference/NN
between/IN
now/RB
and/CC
1995/CD
,/,
''/''
he/PRP
says/VBZ
./.
After/IN
having/VBG
added/VBN
Zenith/NNP
PCs/NNP
to/TO
the/DT
Bull/NNP
stable/NN
,/,
Mr./NNP
Lorentz/NNP
says/VBZ
,/,
the/DT
company/NN
will/MD
be/VB
better/RB
armed/VBN
for/IN
battle/NN
especially/RB
in/IN
Europe/NNP
./.
``/``
Our/PRP$
biggest/JJS
asset/NN
is/VBZ
that/IN
we/PRP
are/VBP
well/RB
implanted/VBN
in/IN
Europe/NNP
,/,
and/CC
Europe/NNP
will/MD
be/VB
the/DT
fastest/JJS
growing/VBG
market/NN
in/IN
the/DT
world/NN
over/IN
the/DT
next/JJ
10/CD
years/NNS
./.
''/''
But/CC
the/DT
conquest/NN
of/IN
Europe/NNP
will/MD
happen/VB
,/,
in/IN
part/NN
,/,
from/IN
the/DT
U.S/NNP
./.
``/``
The/DT
information/NN
industry/NN
is/VBZ
global/JJ
,/,
''/''
says/VBZ
Mr./NNP
Lorenz/NNP
,/,
``/``
but/CC
the/DT
image/NN
of/IN
that/DT
industry/NN
is/VBZ
created/VBN
in/IN
the/DT
U.S./NNP
,/,
so/IN
we/PRP
must/MD
be/VB
present/JJ
in/IN
the/DT
U.S./NNP
in/IN
order/NN
to/TO
be/VB
known/VBN
everywhere/RB
else/RB
./.
The/DT
U.S./NNP
represents/VBZ
45/CD
%/NN
of/IN
the/DT
world/NN
information/NN
market/NN
,/,
so/IN
it/PRP
's/VBZ
45/CD
%/NN
of/IN
our/PRP$
world/NN
./.
The/DT
technology/NN
and/CC
the/DT
human/JJ
resources/NNS
are/VBP
there/RB
,/,
and/CC
since/IN
the/DT
scarcest/JJS
resource/NN
for/IN
us/PRP
is/VBZ
people/NNS
,/,
and/CC
the/DT
people/NNS
are/VBP
in/IN
the/DT
U.S./NNP
,/,
so/RB
are/VBP
we/PRP
./.
That/DT
's/VBZ
the/DT
whole/JJ
story/NN
./.
''/''
With/IN
stock/NN
prices/NNS
hovering/VBG
near/IN
record/NN
levels/NNS
,/,
a/DT
number/NN
of/IN
companies/NNS
have/VBP
been/VBN
announcing/VBG
stock/NN
splits/NNS
./.
But/CC
investors/NNS
trying/VBG
to/TO
play/VB
all/PDT
the/DT
angles/NNS
may/MD
find/VB
that/IN
stock/NN
splits/NNS
are/VBP
a/DT
lot/NN
like/IN
cotton/NN
candy/NN
:/:
They/PRP
look/VBP
tempting/JJ
,/,
but/CC
there/EX
's/VBZ
hardly/RB
any/DT
substance/NN
./.
And/CC
they/PRP
can/MD
even/RB
leave/VB
a/DT
sticky/JJ
problem/NN
,/,
in/IN
the/DT
form/NN
of/IN
higher/JJR
brokerage/NN
commissions/NNS
./.
``/``
A/DT
stock/NN
split/NN
unaccompanied/JJ
by/IN
a/DT
cash/NN
dividend/NN
increase/NN
is/VBZ
like/IN
giving/VBG
somebody/NN
five/CD
singles/NNS
for/IN
a/DT
$/$
5/CD
bill/NN
./.
You/PRP
've/VBP
got/VBN
a/DT
thicker/JJR
billfold/NN
,/,
but/CC
it/PRP
has/VBZ
no/DT
economic/JJ
significance/NN
whatsoever/RB
,/,
''/''
says/VBZ
Leon/NNP
Cooperman/NNP
,/,
a/DT
partner/NN
at/IN
Goldman/NNP
,/,
Sachs/NNP
&/CC
Co/NNP
./.
In/IN
a/DT
typical/JJ
split/NN
,/,
a/DT
company/NN
increases/VBZ
the/DT
number/NN
of/IN
shares/NNS
it/PRP
has/VBZ
outstanding/JJ
,/,
with/IN
each/DT
stockholder/NN
participating/VBG
on/IN
the/DT
basis/NN
of/IN
existing/VBG
holdings/NNS
./.
With/IN
a/DT
2-for-1/JJ
split/NN
,/,
for/IN
example/NN
,/,
an/DT
investor/NN
who/WP
owned/VBD
100/CD
shares/NNS
before/IN
the/DT
split/NN
would/MD
have/VB
200/CD
shares/NNS
afterward/RB
./.
The/DT
stock/NN
's/POS
price/NN
usually/RB
falls/VBZ
to/TO
reflect/VB
the/DT
greater/JJR
number/NN
of/IN
shares/NNS
,/,
assuming/VBG
no/DT
other/JJ
changes/NNS
at/IN
the/DT
company/NN
./.
Companies/NNS
usually/RB
split/VBD
their/PRP$
shares/NNS
in/IN
the/DT
hope/NN
that/IN
a/DT
lower/JJR
share/NN
price/NN
will/MD
attract/VB
more/RBR
individual/JJ
investors/NNS
,/,
increase/VB
trading/NN
volume/NN
and/CC
improve/VB
the/DT
stock/NN
's/POS
liquidity/NN
./.
The/DT
theory/NN
is/VBZ
that/IN
a/DT
stock/NN
selling/VBG
for/IN
$/$
20/CD
or/CC
$/$
30/CD
a/DT
share/NN
will/MD
be/VB
more/RBR
affordable/JJ
to/TO
individuals/NNS
than/IN
one/CD
selling/VBG
for/IN
more/RBR
than/IN
$/$
100/CD
--/:
especially/RB
for/IN
investors/NNS
who/WP
like/VBP
to/TO
buy/VB
round/JJ
lots/NNS
of/IN
100/CD
shares/NNS
./.
Take/VB
L.A./NNP
Gear/NNP
Inc./NNP
,/,
a/DT
fast-growing/JJ
designer/NN
and/CC
marketer/NN
of/IN
athletic/JJ
footwear/NN
that/WDT
had/VBD
a/DT
2-for-1/JJ
split/NN
last/JJ
month/NN
./.
The/DT
main/JJ
reason/NN
for/IN
the/DT
split/NN
was/VBD
``/``
to/TO
make/VB
the/DT
stock/NN
more/RBR
attractive/JJ
to/TO
the/DT
retail/JJ
buyer/NN
,/,
''/''
says/VBZ
Elliott/NNP
J./NNP
Horowitz/NNP
,/,
the/DT
company/NN
's/POS
executive/JJ
vice/NN
president/NN
and/CC
chief/NN
financial/JJ
officer/NN
./.
But/CC
if/IN
a/DT
stock/NN
suddenly/RB
becomes/VBZ
more/RBR
attractive/JJ
to/TO
the/DT
masses/NNS
,/,
should/MD
n't/RB
that/WDT
boost/VBP
its/PRP$
price/NN
?/.
After/IN
all/DT
,/,
L.A./NNP
Gear/NNP
was/VBD
selling/VBG
for/IN
around/IN
$/$
60/CD
a/DT
share/NN
when/WRB
the/DT
split/NN
was/VBD
announced/VBN
on/IN
Aug./NNP
24/CD
,/,
then/RB
soared/VBD
to/TO
more/RBR
than/IN
$/$
75/CD
a/DT
share/NN
before/IN
splitting/NN
in/IN
late/JJ
September/NNP
./.
Yesterday/NN
,/,
the/DT
stock/NN
closed/VBD
at/IN
$/$
41.75/CD
./.
Mr./NNP
Horowitz/NNP
scoffs/VBZ
at/IN
the/DT
idea/NN
that/IN
his/PRP$
company/NN
's/POS
price/NN
surge/NN
was/VBD
caused/VBN
by/IN
the/DT
split/NN
./.
``/``
If/IN
it/PRP
were/VBD
that/RB
easy/JJ
to/TO
take/VB
a/DT
stock/NN
from/IN
60/CD
to/TO
75/CD
,/,
I/PRP
think/VBP
a/DT
lot/NN
of/IN
other/JJ
companies/NNS
would/MD
be/VB
doing/VBG
it/PRP
,/,
''/''
he/PRP
says/VBZ
./.
While/IN
a/DT
split/NN
``/``
does/VBZ
create/VB
more/JJR
demand/NN
for/IN
the/DT
stock/NN
,/,
''/''
he/PRP
says/VBZ
,/,
``/``
I/PRP
just/RB
do/VBP
n't/RB
think/VB
it/PRP
's/VBZ
that/IN
much/JJ
of/IN
a/DT
factor/NN
./.
''/''
Investment/NN
managers/NNS
and/CC
others/NNS
agree/VBP
./.
While/IN
a/DT
stock/NN
split/NN
accompanied/VBN
by/IN
a/DT
dividend/NN
increase/NN
can/MD
pack/VB
a/DT
powerful/JJ
punch/NN
,/,
a/DT
split/NN
by/IN
itself/PRP
``/``
has/VBZ
no/DT
lasting/VBG
impact/NN
on/IN
the/DT
stock/NN
price/NN
,/,
''/''
says/VBZ
Mr./NNP
Cooperman/NNP
of/IN
Goldman/NNP
Sachs/NNP
./.
Adds/NNP
James/NNP
L./NNP
Cochrane/NNP
,/,
senior/JJ
vice/NN
president/NN
at/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
:/:
``/``
We/PRP
've/VBP
done/VBN
research/NN
on/IN
this/DT
,/,
and/CC
it/PRP
shows/VBZ
a/DT
split/NN
really/RB
does/VBZ
n't/RB
to/TO
seem/VB
to/TO
matter/VB
significantly/RB
./.
''/''
Even/RB
if/IN
splits/NNS
did/VBD
affect/VB
stock/NN
prices/NNS
,/,
some/DT
academics/NNS
argue/VBP
that/IN
it/PRP
would/MD
be/VB
futile/JJ
for/IN
investors/NNS
to/TO
try/VB
to/TO
take/VB
advantage/NN
of/IN
them/PRP
./.
In/IN
their/PRP$
view/NN
,/,
financial/JJ
markets/NNS
tend/VBP
to/TO
anticipate/VB
news/NN
./.
Thus/RB
any/DT
impact/NN
from/IN
a/DT
split/NN
would/MD
already/RB
be/VB
incorporated/VBN
in/IN
a/DT
stock/NN
's/POS
price/NN
by/IN
the/DT
time/NN
the/DT
split/NN
was/VBD
announced/VBN
,/,
they/PRP
argue/VBP
./.
``/``
Normally/RB
,/,
the/DT
investor/NN
is/VBZ
n't/RB
able/JJ
to/TO
benefit/VB
''/''
by/IN
buying/VBG
a/DT
company/NN
's/POS
stock/NN
immediately/RB
after/IN
news/NN
of/IN
a/DT
split/NN
,/,
says/VBZ
Frank/NNP
K./NNP
Reilly/NNP
,/,
a/DT
Notre/NNP
Dame/NNP
professor/NN
of/IN
finance/NN
and/CC
co-author/NN
of/IN
a/DT
1981/CD
study/NN
on/IN
splits/NNS
./.
``/``
By/IN
the/DT
time/NN
the/DT
average/JJ
investor/NN
hears/VBZ
the/DT
news/NN
,/,
traders/NNS
already/RB
have/VBP
acted/VBN
and/CC
the/DT
stock/NN
already/RB
has/VBZ
moved/VBN
./.
''/''
A/DT
few/JJ
money/NN
managers/NNS
even/RB
say/VBP
a/DT
stock/NN
split/NN
sometimes/RB
may/MD
represent/VB
a/DT
sell/NN
signal/NN
./.
``/``
Remember/VB
the/DT
old/JJ
Wall/NNP
Street/NNP
adage/NN
:/:
Buy/VB
on/IN
the/DT
rumor/NN
and/CC
sell/VB
on/IN
the/DT
news/NN
,/,
''/''
says/VBZ
Samuel/NNP
Thorne/NNP
Jr./NNP
,/,
a/DT
managing/VBG
director/NN
at/IN
Scudder/NNP
,/,
Stevens/NNP
&/CC
Clark/NNP
in/IN
Boston/NNP
./.
Splits/NNS
can/MD
also/RB
mean/VB
a/DT
bigger/JJR
expense/NN
for/IN
investors/NNS
when/WRB
they/PRP
buy/VBP
or/CC
sell/VBP
shares/NNS
./.
That/DT
's/VBZ
because/IN
brokerage/NN
houses/NNS
often/RB
calculate/VBP
their/PRP$
commission/NN
rates/NNS
using/VBG
a/DT
complex/JJ
formula/NN
based/VBN
partly/RB
on/IN
the/DT
number/NN
of/IN
shares/NNS
being/VBG
traded/VBN
./.
For/IN
example/NN
,/,
a/DT
Merrill/NNP
Lynch/NNP
official/NN
says/VBZ
that/DT
firm/NN
's/POS
commission/NN
on/IN
100/CD
shares/NNS
of/IN
a/DT
$/$
40/CD
stock/NN
would/MD
be/VB
about/IN
$/$
97/CD
./.
But/CC
the/DT
commission/NN
would/MD
jump/VB
to/TO
about/IN
$/$
115/CD
to/TO
trade/VB
200/CD
shares/NNS
of/IN
a/DT
$/$
20/CD
stock/NN
--/:
even/RB
though/IN
the/DT
dollar/NN
amount/NN
of/IN
the/DT
trade/NN
would/MD
be/VB
exactly/RB
the/DT
same/JJ
./.
Another/DT
large/JJ
firm/NN
gave/VBD
similar/JJ
figures/NNS
:/:
The/DT
standard/JJ
commission/NN
on/IN
100/CD
shares/NNS
of/IN
a/DT
$/$
40/CD
stock/NN
would/MD
be/VB
$/$
91/CD
,/,
but/CC
the/DT
commission/NN
would/MD
jump/VB
to/TO
$/$
112.50/CD
to/TO
trade/VB
200/CD
shares/NNS
of/IN
a/DT
$/$
20/CD
stock/NN
./.
``/``
Stock/NN
splits/NNS
are/VBP
the/DT
biggest/JJS
ripoff/NN
on/IN
Wall/NNP
Street/NNP
,/,
''/''
contends/VBZ
Hans/NNP
R./NNP
Reinisch/NNP
,/,
a/DT
New/NNP
York/NNP
investor/NN
./.
``/``
The/DT
only/JJ
thing/NN
that/WDT
changes/VBZ
with/IN
a/DT
split/NN
is/VBZ
the/DT
brokerage/NN
commissions/NNS
,/,
and/CC
they/PRP
often/RB
go/VBP
up/IN
sharply/RB
./.
If/IN
you/PRP
're/VBP
an/DT
active/JJ
investor/NN
,/,
you/PRP
have/VBP
to/TO
take/VB
into/IN
account/NN
the/DT
transaction/NN
costs/NNS
./.
''/''
Some/DT
corporate/JJ
executives/NNS
also/RB
question/VBP
the/DT
idea/NN
that/IN
more/JJR
shares/NNS
are/VBP
better/JJR
./.
Among/IN
these/DT
is/VBZ
Warren/NNP
E./NNP
Buffett/NNP
,/,
chairman/NN
and/CC
chief/NN
executive/JJ
officer/NN
of/IN
Berkshire/NNP
Hathaway/NNP
Inc./NNP
,/,
whose/WP$
stock/NN
closed/VBD
yesterday/NN
on/IN
the/DT
New/NNP
York/NNP
Stock/NNP
Exchange/NNP
at/IN
$/$
8,700/CD
a/DT
share/NN
./.
``/``
We/PRP
often/RB
are/VBP
asked/VBN
why/WRB
Berkshire/NNP
does/VBZ
not/RB
split/VBN
its/PRP$
stock/NN
,/,
''/''
he/PRP
wrote/VBD
in/IN
the/DT
company/NN
's/POS
1983/CD
annual/JJ
report/NN
./.
``/``
The/DT
assumption/NN
behind/IN
this/DT
question/NN
usually/RB
appears/VBZ
to/TO
be/VB
that/IN
a/DT
split/NN
would/MD
be/VB
a/DT
pro-shareholder/NN
action/NN
./.
We/PRP
disagree/VBP
./.
''/''
In/IN
the/DT
lengthy/JJ
discussion/NN
that/IN
followed/VBD
,/,
Mr./NNP
Buffett/NNP
said/VBD
:/:
``/``
We/PRP
want/VBP
{/(
shareholders/NNS
who/WP
think/VBP
of/IN
themselves/PRP
as/IN
business/NN
owners/NNS
with/IN
the/DT
intention/NN
of/IN
staying/VBG
a/DT
long/JJ
time/NN
./.
And/CC
,/,
we/PRP
want/VBP
those/DT
who/WP
keep/VBP
their/PRP$
eyes/NNS
focused/VBN
on/IN
business/NN
results/NNS
,/,
not/RB
market/NN
prices/NNS
./.
''/''
Underscoring/VBG
his/PRP$
feelings/NNS
on/IN
the/DT
subject/NN
,/,
Mr./NNP
Buffett/NNP
once/RB
sent/VBD
a/DT
birthday/NN
greeting/NN
to/TO
a/DT
friend/NN
,/,
wishing/VBG
him/PRP
good/JJ
health/NN
and/CC
saying/VBG
:/:
``/``
May/MD
you/PRP
live/VB
until/IN
Berkshire/NNP
splits/VBZ
./.
''/''
Still/RB
,/,
many/JJ
companies/NNS
like/VBP
splits/NNS
as/IN
an/DT
inexpensive/JJ
marketing/NN
tool/NN
that/WDT
generates/VBZ
favorable/JJ
publicity/NN
and/CC
helps/VBZ
broaden/VB
their/PRP$
shareholder/NN
base/NN
./.
A/DT
stock/NN
split/NN
is/VBZ
``/``
a/DT
nice/JJ
exercise/NN
in/IN
cosmetics/NNS
,/,
but/CC
that/DT
's/VBZ
about/IN
all/DT
,/,
''/''
says/VBZ
James/NNP
H./NNP
Coxon/NNP
,/,
senior/JJ
vice/NN
president/NN
and/CC
head/NN
of/IN
the/DT
common-stock/JJ
division/NN
at/IN
Cigna/NNP
Investments/NNPS
Inc/NNP
./.
``/``
It/PRP
's/VBZ
a/DT
small/JJ
net/NN
positive/JJ
because/IN
it/PRP
can/MD
improve/VB
the/DT
marketability/NN
of/IN
a/DT
particular/JJ
stock/NN
./.
But/CC
it/PRP
's/VBZ
really/RB
of/IN
very/RB
little/JJ
significance/NN
./.
''/''
A/DT
split/NN
's/POS
impact/NN
,/,
if/IN
any/DT
,/,
can/MD
depend/VB
on/IN
the/DT
company/NN
involved/VBN
and/CC
the/DT
price/NN
of/IN
that/DT
company/NN
's/POS
stock/NN
,/,
says/VBZ
John/NNP
P./NNP
Rosenthal/NNP
,/,
senior/JJ
partner/NN
of/IN
Silberberg/NNP
,/,
Rosenthal/NNP
&/CC
Co/NNP
./.
But/CC
he/PRP
adds/VBZ
that/IN
any/DT
impact/NN
from/IN
a/DT
split/NN
``/``
really/RB
is/VBZ
very/RB
short-term/JJ
./.
''/''
Advises/VBZ
Michael/NNP
Metz/NNP
,/,
a/DT
managing/VBG
director/NN
at/IN
Oppenheimer/NNP
&/CC
Co/NNP
:/:
``/``
Just/RB
ignore/VB
splits/NNS
./.
''/''
In/IN
his/PRP$
view/NN
,/,
``/``
They/PRP
're/VBP
irrelevant/JJ
for/IN
the/DT
long-term/JJ
investor/NN
./.
Look/VB
only/RB
at/IN
the/DT
fundamentals/NNS
of/IN
a/DT
company/NN
,/,
not/RB
whether/IN
it/PRP
splits/VBZ
its/PRP$
stock/NN
./.
''/''
FEDERAL/NNP
INDUSTRIES/NNPS
Ltd./NNP
said/VBD
it/PRP
agreed/VBD
with/IN
underwiters/NNS
led/VBN
by/IN
Scotia-McLeod/NNP
Inc./NNP
to/TO
issue/VB
75/CD
million/CD
Canadian/JJ
dollars/NNS
$/$
63.8/CD
million/CD
principal/JJ
amount/NN
of/IN
9/CD
%/NN
convertible/JJ
subordinated/VBN
debentures/NNS
./.
Federal/NNP
Industries/NNPS
,/,
a/DT
diversified/VBN
manufacturing/NN
,/,
distribution/NN
and/CC
transportation/NN
concern/NN
based/VBN
in/IN
Winnipeg/NNP
,/,
Manitoba/NNP
,/,
said/VBD
the/DT
debentures/NNS
will/MD
be/VB
convertible/JJ
until/IN
their/PRP$
1999/CD
maturity/NN
into/IN
the/DT
company/NN
's/POS
Class/NNP
A/NNP
shares/NNS
at/IN
C$/$
18.50/CD
a/DT
share/NN
./.
Federal/NNP
Industries/NNPS
said/VBD
C$/$
54/CD
million/CD
of/IN
the/DT
proceeds/NNS
will/MD
be/VB
used/VBN
to/TO
finance/VB
its/PRP$
previously/RB
reported/VBN
plan/NN
to/TO
buy/VB
W.H./NNP
Smith/NNP
Canada/NNP
Ltd./NNP
,/,
a/DT
bookstore/NN
chain/NN
,/,
and/CC
the/DT
balance/NN
to/TO
repay/VB
short-term/JJ
debt/NN
./.
Your/PRP$
Sept./NNP
15/CD
story/NN
on/IN
the/DT
destroyer/NN
DDG-51/NNP
,/,
the/DT
Arleigh/NNP
Burke/NNP
,/,
inaccurately/RB
asserts/VBZ
,/,
``/``
several/JJ
aluminum-hulled/JJ
British/JJ
ships/NNS
were/VBD
destroyed/VBN
by/IN
Argentine/JJ
missiles/NNS
./.
''/''
Only/RB
one/CD
aluminum-hulled/JJ
British/JJ
vessel/NN
was/VBD
so/RB
destroyed/VBN
,/,
the/DT
HMS/NNP
Sheffield/NNP
./.
It/PRP
was/VBD
struck/VBN
by/IN
an/DT
Exocet/NNP
,/,
setting/VBG
off/IN
fires/NNS
that/WDT
ignited/VBD
its/PRP$
aluminum/NN
superstructure/NN
./.
As/RB
far/RB
as/IN
I/PRP
know/VBP
,/,
there/EX
is/VBZ
no/DT
way/NN
to/TO
extinguish/VB
such/PDT
a/DT
fire/NN
at/IN
sea/NN
,/,
which/WDT
is/VBZ
why/WRB
the/DT
U.S./NNP
Navy/NNP
has/VBZ
sensibly/RB
built/VBN
the/DT
Burke/NNP
of/IN
steel/NN
./.
However/RB
,/,
the/DT
Navy/NNP
also/RB
claims/VBZ
that/IN
its/PRP$
mostly/RB
aluminum/JJ
Aegis-class/JJ
cruisers/NNS
,/,
some/DT
of/IN
which/WDT
are/VBP
yet/RB
to/TO
be/VB
built/VBN
,/,
could/MD
never/RB
meet/VB
the/DT
fate/NN
of/IN
the/DT
Sheffield/NNP
because/IN
no/DT
enemy/NN
missile/NN
could/MD
penetrate/VB
their/PRP$
defenses/NNS
./.
Frank/NNP
H./NNP
Price/NNP
Jr/NNP
./.
Birmingham/NNP
,/,
Ala/NNP
./.
``/``
Snoozing/VBG
''/''
through/IN
the/DT
Beijing/NNP
massacre/NN
?/.
This/DT
is/VBZ
the/DT
buzzword/NN
Adi/NNP
Ignatius/NNP
chooses/VBZ
to/TO
characterize/VB
in/IN
his/PRP$
review/NN
of/IN
my/PRP$
book/NN
``/``
Tiananmen/NNP
Diary/NNP
:/:
Thirteen/CD
Days/NNPS
in/IN
June/NNP
''/''
(/(
Leisire/NNP
&/CC
Arts/NNP
,/,
Sept./NNP
8/CD
I/PRP
doubt/VBP
that/IN
many/JJ
readers/NNS
of/IN
this/DT
chronicle/NN
of/IN
the/DT
blood/NN
and/CC
bullets/NNS
and/CC
terror/NN
of/IN
the/DT
Beijing/NNP
massacre/NN
would/MD
put/VB
it/PRP
just/RB
this/DT
way/NN
./.
Nor/CC
mistake/VB
,/,
as/IN
he/PRP
seems/VBZ
to/TO
have/VB
done/VBN
,/,
a/DT
raw/JJ
,/,
rough-cut/JJ
,/,
unretouched/JJ
,/,
genuine/JJ
diary/NN
,/,
complete/JJ
with/IN
blips/NNS
,/,
print/NN
lice/NNS
and/CC
all/PDT
the/DT
confusions/NNS
of/IN
real/JJ
time/NN
with/IN
high-gloss/JJ
footnoted/VBN
academic/JJ
scholarship/NN
./.
Such/JJ
works/NNS
will/MD
be/VB
forthcoming/JJ
,/,
but/CC
I/PRP
doubt/VBP
if/IN
they/PRP
will/MD
convey/VB
the/DT
anguish/NN
of/IN
what/WP
Mr./NNP
Ignatius/NNP
calls/VBZ
my/PRP$
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insta-book/NN
./.
''/''
Harrison/NNP
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Taconic/NNP
,/,
Conn/NNP
./.
REPLIGEN/NNP
Inc./NNP
said/VBD
it/PRP
will/MD
issue/VB
one/CD
million/CD
new/JJ
common/JJ
shares/NNS
in/IN
a/DT
$/$
9/CD
million/CD
private/JJ
placement/NN
to/TO
institutional/JJ
investors/NNS
in/IN
the/DT
U.K/NNP
./.
The/DT
Cambridge/NNP
,/,
Mass./NNP
,/,
biotechnology/NN
company/NN
said/VBD
proceeds/NNS
will/MD
be/VB
used/VBN
to/TO
broaden/VB
its/PRP$
research/NN
and/CC
development/NN
of/IN
products/NNS
to/TO
fight/VB
infectious/JJ
diseases/NNS
and/CC
to/TO
increase/VB
manufacturing/NN
capabilities/NNS
./.
Bear/NNP
Stearns/NNP
&/CC
Co./NNP
handled/VBD
the/DT
closing/NN
of/IN
the/DT
transactions/NNS
,/,
Repligen/NNP
said/VBD
./.
After/IN
the/DT
sale/NN
,/,
Repligen/NNP
will/MD
have/VB
about/IN
8.3/CD
million/CD
shares/NNS
outstanding/JJ
./.
In/NNP
Other/NNP
Words/NNPS
Why/WRB
,/,
wishing/VBG
someone/NN
A/DT
recovery/NN
,/,
must/MD
it/PRP
Be/VB
``/``
speedy/JJ
''/''
?/.
Why/WRB
,/,
if/IN
a/DT
felon/NN
's/POS
eyes/NNS
Are/VBP
narrow/JJ
,/,
Must/MD
they/PRP
always/RB
be/VB
``/``
Beady/JJ
''/''
?/.
Why/WRB
are/VBP
muscles/NNS
--/:
this/DT
is/VBZ
so/RB
vexing/JJ
--/:
When/WRB
exercising/VBG
,/,
said/VBD
To/TO
be/VB
``/``
flexing/VBG
''/''
?/.
I/PRP
guess/VBP
it/PRP
's/VBZ
just/RB
one/CD
Of/IN
my/PRP$
whims/NNS
,/,
But/CC
I/PRP
wonder/VBP
what/WP
Happened/VBN
To/TO
synonyms/NNS
./.
--/:
Dow/NNP
Richardson/NNP
./.
Safety/NNP
in/IN
Numbers/NNPS
The/DT
``/``
raison/FW
d'etre/FW
''/''
for/IN
committees/NNS
least/JJS
the/DT
way/NN
I/PRP
construe/VBP
it/PRP
Why/WRB
should/MD
just/RB
one/CD
person/NN
mess/VB
things/NNS
up/IN
When/WRB
several/JJ
persons/NNS
can/MD
do/VB
it/PRP
?/.
--/:
George/NNP
O./NNP
Ludcke/NNP
./.
Daffynition/NNP
Horseman/NN
:/:
reinman/NN
--/:
Shannon/NNP
Rose/NNP
./.
First/NNP
Federal/NNP
Savings/NNP
Bank/NNP
said/VBD
holders/NNS
voted/VBD
to/TO
approve/VB
its/PRP$
proposed/VBN
merger/NN
with/IN
First/NNP
American/NNP
Federal/NNP
Savings/NNP
&/CC
Loan/NNP
Association/NNP
,/,
Huntsville/NNP
,/,
Ala/NNP
./.
The/DT
thrift/NN
said/VBD
it/PRP
is/VBZ
waiting/VBG
for/IN
final/JJ
regulatory/JJ
approval/NN
of/IN
the/DT
transaction/NN
,/,
after/IN
which/WDT
its/PRP$
holders/NNS
will/MD
be/VB
entitled/VBN
to/TO
receive/VB
$/$
20.83/CD
for/IN
each/DT
share/NN
held/VBN
./.
Securities/NNS
analysts/NNS
are/VBP
using/VBG
terms/NNS
like/IN
``/``
kitchen-sink/JJ
syndrome/NN
''/''
and/CC
``/``
clearing/VBG
the/DT
decks/NNS
''/''
to/TO
describe/VB
the/DT
generally/RB
disappointing/JJ
results/NNS
that/IN
commercial/JJ
banks/NNS
are/VBP
expected/VBN
to/TO
report/VB
in/IN
the/DT
coming/VBG
weeks/NNS
./.
A/DT
number/NN
of/IN
major/JJ
banks/NNS
have/VBP
chosen/VBN
to/TO
make/VB
huge/JJ
additions/NNS
to/TO
their/PRP$
loan-loss/NN
reserves/NNS
in/IN
the/DT
third/JJ
quarter/NN
,/,
either/CC
for/IN
troubled/VBN
loans/NNS
to/TO
Latin/JJ
American/JJ

nations/NNS
,/,
soured/VBN
real-estate/NN
loans/NNS
in/IN
this/DT
country/NN
or/CC
bad/JJ
loans/NNS
to/TO
companies/NNS
involved/VBN
in/IN
leveraged/JJ
buy-outs/NNS
./.
The/DT
banks/NNS
hope/VBP
to/TO
get/VB
the/DT
bad/JJ
news/NN
behind/IN
them/PRP
now/RB
,/,
so/RB
that/IN
their/PRP$
earnings/NNS
--/:
and/CC
their/PRP$
stock/NN
prices/NNS
--/:
can/MD
rebound/VB
in/IN
the/DT
coming/VBG
quarters/NNS
./.
J.P./NNP
Morgan/NNP
&/CC
Co./NNP
has/VBZ
effectively/RB
neutralized/VBN
any/DT
problems/NNS
that/IN
its/PRP$
developing-country/JJ
loan/NN
portfolio/NN
could/MD
pose/VB
in/IN
the/DT
future/NN
by/IN
announcing/VBG
a/DT
$/$
2/CD
billion/CD
addition/NN
to/TO
reserves/NNS
for/IN
the/DT
quarter/NN
./.
As/IN
a/DT
result/NN
,/,
Morgan/NNP
will/MD
post/VB
a/DT
loss/NN
for/IN
the/DT
quarter/NN
and/CC
year/NN
./.
Similarly/RB
,/,
Manufacturers/NNPS
Hanover/NNP
Corp./NNP
made/VBD
a/DT
big/JJ
addition/NN
to/TO
reserves/NNS
for/IN
developing-country/JJ
debt/NN
that/WDT
will/MD
cause/VB
it/PRP
to/TO
post/VB
a/DT
loss/NN
./.
Chase/NNP
Manhattan/NNP
Corp./NNP
on/IN
Wednesday/NNP
,/,
as/IN
expected/VBN
,/,
reported/VBD
a/DT
net/JJ
loss/NN
for/IN
the/DT
third/JJ
quarter/NN
of/IN
$/$
1.11/CD
billion/CD
,/,
or/CC
$/$
12.45/CD
a/DT
share/NN
,/,
following/VBG
a/DT
massive/JJ
addition/NN
to/TO
reserves/NNS
for/IN
possible/JJ
losses/NNS
on/IN
loans/NNS
primarily/RB
to/TO
developing/VBG
countries/NNS
./.
And/CC
several/JJ
regional/JJ
banks/NNS
,/,
including/VBG
Bank/NNP
of/IN
Boston/NNP
Corp./NNP
and/CC
First/NNP
Bank/NNP
System/NNP
Inc./NNP
,/,
are/VBP
expected/VBN
to/TO
report/VB
losses/NNS
stemming/VBG
from/IN
major/JJ
additions/NNS
to/TO
reserves/NNS
for/IN
foundering/VBG
domestic/JJ
loans/NNS
./.
With/IN
all/PDT
this/DT
disappointing/JJ
news/NN
,/,
analysts/NNS
would/MD
n't/RB
be/VB
surprised/VBN
to/TO
see/VB
other/JJ
banks/NNS
,/,
particularly/RB
those/DT
with/IN
loans/NNS
to/TO
developing/VBG
countries/NNS
,/,
use/VB
the/DT
spate/NN
of/IN
reserve-building/NN
by/IN
others/NNS
as/IN
an/DT
opportunity/NN
to/TO
clean/VB
up/IN
their/PRP$
own/JJ
balance/NN
sheets/NNS
./.
The/DT
nation/NN
's/POS
biggest/JJS
banking/NN
company/NN
,/,
Citicorp/NNP
,/,
is/VBZ
n't/RB
expected/VBN
to/TO
follow/VB
the/DT
lead/NN
of/IN
Manufacturers/NNPS
,/,
Chase/NNP
and/CC
Morgan/NNP
with/IN
a/DT
massive/JJ
boost/NN
in/IN
reserves/NNS
./.
Nevertheless/RB
,/,
analysts/NNS
expect/VBP
Citicorp/NNP
's/POS
third/JJ
quarter/NN
will/MD
be/VB
near/IN
its/PRP$
level/NN
for/IN
the/DT
same/JJ
period/NN
a/DT
year/NN
ago/IN
and/CC
therefore/RB
somewhat/RB
disappointing/JJ
./.
Many/JJ
analysts/NNS
were/VBD
expecting/VBG
generally/RB
weak/JJ
third-quarter/NN
results/NNS
anyway/RB
due/JJ
to/TO
continued/VBN
rises/NNS
in/IN
non-performing/JJ
loans/NNS
and/CC
pressure/NN
on/IN
interest-rate/NN
margins/NNS
./.
Keefe/NNP
,/,
Bruyette/NNP
&/CC
Woods/NNP
Inc./NNP
,/,
a/DT
securities/NNS
firm/NN
specializing/VBG
in/IN
bank/NN
stocks/NNS
,/,
estimates/VBZ
that/IN
third-quarter/NN
results/NNS
will/MD
rise/VB
8/CD
%/NN
from/IN
the/DT
year-ago/JJ
figure/NN
for/IN
144/CD
regional/JJ
banks/NNS
that/IN
it/PRP
follows/VBZ
./.
That/DT
's/VBZ
the/DT
smallest/JJS
increase/NN
this/DT
year/NN
./.
The/DT
principal/JJ
reason/NN
for/IN
the/DT
slower/JJR
growth/NN
is/VBZ
the/DT
narrowing/VBG
difference/NN
in/IN
interest/NN
rates/NNS
on/IN
loans/NNS
and/CC
the/DT
cost/NN
of/IN
interest-bearing/JJ
consumer/NN
deposits/NNS
./.
Keefe/NNP
estimates/VBZ
this/DT
difference/NN
will/MD
shrink/VB
to/TO
4.39/CD
percentage/NN
points/NNS
in/IN
the/DT
third/JJ
quarter/NN
,/,
the/DT
lowest/JJS
level/NN
in/IN
a/DT
year/NN
./.
Further/JJ
deterioration/NN
in/IN
domestic/JJ
loan/NN
quality/NN
is/VBZ
adding/VBG
to/TO
the/DT
pressure/NN
on/IN
earnings/NNS
./.
Nonperforming/VBG
real-estate/NN
loans/NNS
in/IN
New/NNP
England/NNP
continue/VBP
to/TO
climb/VB
,/,
and/CC
the/DT
number/NN
of/IN
highly/RB
leveraged/JJ
commercial/JJ
loans/NNS
that/WDT
have/VBP
gotten/VBN
into/IN
trouble/NN
is/VBZ
rising/VBG
./.
Hooker/NNP
International/NNP
,/,
Seaman/NNP
Furniture/NNP
Co./NNP
,/,
Lomas/NNP
Financial/NNP
Group/NNP
Inc./NNP
,/,
Integrated/NNP
Resources/NNPS
Inc./NNP
and/CC
Resorts/NNPS
International/NNP
Inc./NNP
are/VBP
some/DT
of/IN
the/DT
more/RBR
prominent/JJ
troubled/JJ
concerns/NNS
./.